[A. Receive a report, hold a discussion and give staff direction regarding updates to the Denton Renewable Resource Plan. [Estimated Presentation/Discussion Time: 60 minutes]]

INDIVIDUAL CONSIDERATIONS? SEEING NONE. THAT TAKES US TO OUR FIRST WORK SESSION. REPORT ITEM THREE A ID 241910. RECEIVE REPORT. DISCUSSION. GIVE STAFF DIRECTION REGARDING UPDATES TO

THE DENTON RENEWABLE RESOURCE PLAN. >> MAYOR, CITY COUNCIL TONY PUENTE DE GENERAL MANAGER THANK YOU FOR YOUR TIME THIS AFTERNOON. CERTAINLY A LONG TIME COMING WITH THIS PROJECT. KNOW THAT WE'VE BEEN FEVERISHLY WORKING TO TRY TO GET YOU AN UPDATE. CERTAINLY WANT TO THANK JOSE GAITAN, WHO'S OUR POWER SUPPLY MANAGER, AND ALL HIS STAFF. I MEAN, THOSE ARE THE FOLKS THAT REALLY HAVE BEEN WORKING HARD TO GET THIS PLAN IMPLEMENTED. AND SO TODAY WE PLAN TO GIVE YOU AN UPDATE ON WHERE THINGS ARE KIND OF WALK YOU THROUGH, ACTUALLY TWO PARTS. THIS PRESENTATION IS A TWO PARTER. THERE'S RECOMMENDATIONS IN BOTH PARTS. AND THEN I'LL KIND OF DO A RECAP AT THE VERY END OF KIND OF THE OVERARCHING RECOMMENDATIONS. SO BUT CERTAINLY IF THERE'S ANY QUESTIONS AS WE GO ALONG, PLEASE FEEL FREE TO, TO JUST LET ME KNOW. SO AGAIN, LIKE I SAID, THE AGENDA WE'RE GOING TO COVER THE RENEWABLE RESOURCE PLAN. ALSO TALK A LITTLE BIT ABOUT WHAT IS AN INTEGRATED RESOURCE PLAN AND THEN GO THROUGH THE VARIOUS RECOMMENDATIONS. SO AS YOU MAY KNOW, DME HAS HAD A WHAT'S CALLED A RENEWABLE RESOURCE PLAN THAT DATES BACK TO 2018. THERE WAS A CONSULTANT THAT WAS HIRED TO COME UP WITH THIS PLAN, SAME CONSULTANT THAT DID A VERY SIMILAR PLAN FOR THE CITY OF GEORGETOWN, BUT THAT PLAN SET DME TO ACHIEVE 100% RENEWABLE ENERGY AS EARLY AS 2020 OR 2024.

AND I WILL JUST SAY THAT THERE WAS CAVEATS TO BOTH OF THOSE DATES. AND FOR 2024, IT WAS ACTUALLY OPTION A AND OPTION B, AND I'LL TALK A LITTLE BIT ABOUT THAT. THE PLAN REALLY WAS WAS BASED ON A DIVERSIFIED SET OF POWER PURCHASE AGREEMENTS FOR RENEWABLE ENERGY THAT REALLY JUST ENCOMPASSED WIND AND SOLAR AT THE UTILITY SCALE. YOU KNOW, CERTAINLY A LOT OF OBJECTIVES, YOU KNOW, PRICE BEING A BIG A BIG FACTOR. SO LEASE COST SUPPLIES WERE SOMETHING THAT WAS INTEGRAL TO THAT PLAN. AS YOU MAY RECALL, FOR THOSE OF YOU WHO HAVE BEEN INVOLVED, WHEN WE'VE BROUGHT TO YOU PROPOSALS TO REQUEST A REQUEST FOR PROPOSALS, PRICE IS GENERALLY THE DETERMINING FACTOR ON ON WHO WE AWARD THOSE PPAS TO. THEN THE PLAN ALSO RECOGNIZED THAT THE ENERGY CENTER, 225 MEGAWATT NATURAL GAS FACILITY WAS A COST HEDGE FOR REALLY FOR THE SUPER HIGH PRICED HOURS. AND WE'LL TALK A LITTLE ABOUT THE DUCK CURVE AND SOME OF THOSE KIND OF DOUBLE HUMP SITUATIONS DURING THE WINTER. AND THE GREATEST CHALLENGE REALLY IN DOING THIS IS JUST TO BALANCING THE, THE SUPPLY PORTFOLIO WITH, WITH INTERMITTENT RESOURCES AND UNDERSTAND THAT INTERMITTENT RESOURCES. WHAT THAT MEANS IS THAT THEY DON'T YOU DON'T PUSH A BUTTON AND THEY START RIGHT. IT'S ALL DETERMINED ON ON SUNSHINE AND WIND. AND THAT'S REALLY THE ONLY DETERMINING FACTOR WITH THOSE WITH THOSE FACILITIES. HERE'S A RECAP OF THE CURRENT CONTRACTED RESOURCES. WE HAVE ABOUT 450MW OF INSTALLED CAPACITY OR CONTRACTED CAPACITY. I'LL JUST BE CLEAR THAT THAT LAST ITEM ON HERE, YELLOW VIKING 100MW, WAS IS STILL IN PROCESS FOR BEING DEVELOPED, BUT THAT IS A 15 YEAR AGREEMENT, 100MW, I WILL POINT OUT THAT AS WE AS WE LOOK AT THESE RESOURCES, YOU KNOW, KEEP IN MIND THAT SOLAR RESOURCES ONLY GENERATE POWER ABOUT 40% OF THE TIME. RIGHT? AND THEN THAT'S THAT'S AN OVERARCHING ESTIMATE.

OBVIOUSLY, IF THERE'S MORE SUNSHINE, MORE WIND, IT WILL BE MORE THAN THAT. BUT IT'S KIND OF

[00:05:03]

THE STANDARD THAT WE UTILIZE FOR WIND. IT'S ABOUT 30% OF THE CAPACITY. SO IF YOU'RE LOOKING AT 455MW OF TOTAL CAPACITY THAT WE HAVE UNDER CONTRACT, WHAT WE IN THE EMO ACTUALLY COUNT ON IS ABOUT 200. SO NOT THE WHOLE THING. NOW, I WILL SAY THAT THESE OVER THE LAST THREE YEARS, THESE RESOURCES HAVE ALL EXCEEDED EXPECTATIONS, WHICH IS WHICH IS A GOOD THING. AND WE'LL TALK A LITTLE BIT ABOUT KIND OF OVERALL IN THE STATE, HOW REALLY THE STATE OF TEXAS HAS BEEN NOW THE LEADER WHEN IT COMES TO WIND AND SOLAR GENERATION ACROSS THE COUNTRY, EVEN BEATING OUT CALIFORNIA. SO A LITTLE BIT ABOUT THE GOAL AND THE TIMELINE. SO JUST TO TAKE YOU BACK A LITTLE BIT TO 2009, THIS GOAL STARTED OFF AT 40%, 70% IN 2016, 2018. THEN IT WENT TO 100%. AND THEN CERTAINLY THE WAY THAT WE'VE BEEN CALCULATING THE GOAL, WE BELIEVE THAT IN 2021 WE ACHIEVED THAT GOAL AGAIN, ALL WITHIN THE THREE DIFFERENT OPTIONS THAT WERE OUTLINED IN THE IN THE 2018 PLAN. I REMEMBER OPTION A AND B FOR 2024 WAS REALLY OPTION B WAS REALLY THE OPTION THAT WE THAT WE'VE KIND OF BEEN USING TO. AND WE REACHED THAT GOAL BY 2021. AND THIS IS HOW KIND OF IT ALL SHOOK OUT. SO IN 2021 WE SERVED ABOUT 1.6 MILLION MEGAWATT HOURS. THAT'S THE POWER THAT WE BOUGHT OUT IN THE MARKET AND THAT WE SOLD TO OUR CUSTOMERS. AND THEN THE GENERATION FACILITY THAT WE HAD ONLY ONLY THE RENEWABLES. AND SO THOSE THAT WERE UNDER CONTRACT GENERATED ABOUT 1.3 MILLION, AND THERE WAS A DEFICIT, AND THAT DEFICIT WAS ABOUT 262,000MW OF ENERGY. WE HAD A CONTRACT AT THAT TIME CALLED THE WHITETAIL CONTRACT THAT INCLUDED 30MW OF RECS WITH WITH POWER THAT WE THAT THE CITY OWNED, AND 30MW WITHOUT THE POWER THAT WE OWN.

AND SO WE WERE ABLE TO USE THOSE 30MW OF RECS WITHOUT POWER. THAT'S WHAT'S REFLECTED IN THIS 262 TO ACHIEVE THAT 100% GOAL. AND IN 2021, THAT CALCULATION TURNED OUT TO BE 101%. AND THEN YOU SEE ON HERE JUST AN ACCOUNTING OF WHERE WE WERE IN 22, 23 AND 24. THE WHITETAIL CONTRACT DID EXPIRE AT THE END OF 2023. SO IN 2024, WE DID BUY 400, 530 MEGAWATT HOURS OF RECS OUT IN THE OUT IN THE MARKET. THE DISCUSSION WITH THE COUNCIL AT THE TIME WAS THAT FOR US TO GO OUT AND BUY THE REPLACEMENT ENERGY FOR THOSE 30MW OF RECS OVER THAT THREE YEAR PERIOD WOULD HAVE COST US A LITTLE BIT OVER $5 MILLION VERSUS THE ROUGHLY $1.50 THAT WE PAY FOR RECS. AND SO THE DECISION THAT THE THAT THAT COUNCIL MADE AT THE TIME WAS FOR US TO MOVE FORWARD AND CONTINUE AND COUNT THOSE RECS AND AGAIN, UNTIL UNLESS WE GET A DIFFERENT DIRECTION, WE'LL CONTINUE TO COUNT THOSE BY THOSE RECS TO KIND OF FILL THAT GAP. RIGHT. SO YOU'RE FILLING THE GAP BETWEEN THE RENEWABLE ENERGY THAT WAS GENERATED AND THE LOAD THAT YOU SERVED. WE DO ANTICIPATE THAT FOR 2025 WILL LIKELY BE OUT THERE TO BUY ADDITIONAL RECS.

CERTAINLY WE'VE HAD SOME CHALLENGES WITH SOME OF OUR PPAS. AS AS YOU'RE YOU'RE WELL AWARE THERE'S BEEN SOME MAJOR DELAYS IN PROJECTS. AND SO WE WHILE WE ANTICIPATE THAT WE'LL STILL BE ABLE TO GENERATE ABOUT THE SAME AMOUNT OF RENEWABLE GENERATION, ABOUT 1.3 MILLION, UNDERSTAND THAT THAT THE LOAD THAT WE'RE SERVING CONTINUES TO INCREASE. AND THAT'S EVEN WITHOUT THE DATA CENTER PROJECT OR PROJECTS, BECAUSE THERE'S TWO THAT THAT YOU'RE FAMILIAR WITH.

SO SOME OF THE CHALLENGES AND INTERNAL AUDIT FINDINGS, I'LL JUST POINT OUT THAT I'M NOT SAYING THAT THE INTERNAL AUDITOR IS A CHALLENGE, BUT SHE DID IDENTIFY SOME SOME AREAS FOR IMPROVEMENT. LET ME TOUCH BASE REAL QUICK WITH YOU ON WHAT'S CALLED THE TEXAS RENEWABLE PORTFOLIO STANDARD. THE RPS, RPS IS EXIST ACROSS THE COUNTRY IN VARIOUS STATES, BUT THE RPS CAME SOON AFTER DEREGULATION WAS ESTABLISHED BACK IN 1999. THIS SET OUT AND ESTABLISHED THE RENEWABLE ENERGY CREDIT PROGRAM. THE POINT HERE BEING IS THAT RENEWABLE ENERGY CREDITS AND USE OF RECS ARE ACCEPTABLE FORMS OF DEMONSTRATING SUSTAINABILITY GOALS AND GOALS OF ACHIEVING 100% RENEWABLE, WHATEVER THOSE TARGETS MAY BE. BUT THE RPS WAS ESTABLISHED IN THE STATE OF TEXAS AND IDENTIFIED ONLY THESE RESOURCES THAT ARE UP HERE SOLAR, WIND. GEOTHERMAL, HYDROELECTRIC, WAVE, TIDAL AND BIOMASS BIOMASS. THOSE ARE THE ONLY ONES IN THE RPS PROGRAM THAT ARE RECOGNIZED AS RENEWABLE AND ARE AWARDED RECS. SO FOR EVERY ONE MEGAWATT OF ENERGY THAT'S PRODUCED BY THOSE RESOURCES, THE STATE AWARDS THEM A REC. RIGHT. AND THAT REC IS

[00:10:05]

WHAT DEMONSTRATES AND IS THE SUPPORTING DOCUMENTATION, THE EVIDENCE THAT THAT PARTICULAR GENERATION OCCURRED. SO IN THE IN THE CASE OF, OF THE WHITETAIL CONTRACT, THOSE ADDITIONAL 30MW WHERE WE DIDN'T OWN THE ENERGY, THAT ENERGY WAS ACTUALLY PRODUCED. RIGHT. WE JUST OWNED THE RECS. RIGHT? WE DIDN'T OWN THE ENERGY. SO IN THIS IN THIS PROGRAM DID ESTABLISH A GOAL AT THAT TIME TO REACH 5000MW OF RENEWABLE ENERGY BY 2015, 10,000MW, MEGAWATTS BY 2025. I WILL TELL YOU THAT THOSE WERE BY FAR EXCEEDED. AND SO TODAY, NOW TODAY WAS PROBABLY TWO MONTHS AGO, MAYBE THREE MONTHS AGO WHEN I PUT THIS PRESENTATION TOGETHER. SO IT'S CHANGED A LITTLE BIT, BUT IT'S STILL IN THE BALLPARK. SO IT'S ABOUT 40MW, 40,000MW OF INSTALLED WIND CAPACITY IN THE STATE OF TEXAS. AND THE STATE OF TEXAS LEADS THE NATION WITH WITH WIND AND SOLAR, OVER 25,000MW OF INSTALLED CAPACITY. AND WHILE TEXAS IS BEHIND CALIFORNIA AND INSTALLED CAPACITY, IT'S ACTUALLY LED THE COUNTRY IN ACTUAL GENERATION. AND AGAIN, A LOT OF ABUNDANT SPACES, CERTAINLY OUT IN WEST TEXAS, WHERE A LOT OF THESE RESOURCES ARE PREDOMINANTLY CERTAINLY ON THE ON THE SOLAR SIDE. SO THE REC PROGRAM IS SOMETHING THAT WAS INTERESTING.

IT ACTUALLY MANDATED RETAIL ELECTRIC PROVIDERS, WHICH ARE INVESTOR OWNED UTILITIES, TO PURCHASE RECS. AND SO THEY WERE EACH ALLOCATED A CERTAIN PERCENTAGE OF RECS THAT THEY HAD TO BUY AND RETIRE EVERY YEAR AS A WAY TO PROMOTE RENEWABLE ENERGY IN THE MARKET. DME AS A AS AN MOU THAT THAT IS NOT OPT IN TO COMPETITION IS EXEMPT FROM THAT. AND THEN I JUST WANT TO POINT OUT THAT THE GOAL THAT WE'VE ESTABLISHED HERE LOCALLY IS A LOCALLY DECISION PLAN.

THERE IS NO STATE REQUIREMENT OR FEDERAL REQUIREMENT TO ESTABLISH THIS, CERTAINLY NOT AT THE AT THE UTILITY SCALE. AND THEN BRIEFLY, WHAT IS REC. SO A REC AS I MENTIONED, IS THE EVIDENCE THAT THAT RENEWABLE ENERGY WAS PRODUCED. EACH REC HAS A THREE YEAR LIFE. SO IF IT'S PRODUCED IN JANUARY OR PRODUCED IN DECEMBER, THAT'S COUNTED AS YEAR ONE. AND THEN YOU HAVE TWO ADDITIONAL YEARS THAT THAT REC IS GOOD FOR. THEY DO MATURE AFTER THREE YEARS. SO THEY'RE NO LONGER VALID AFTER THREE YEARS. THERE IS A MARKET FOR THOSE RECS AND WE'LL BE MAKING SOME RECOMMENDATIONS HERE FOR YOU ON, ON SOME PARAMETERS THAT WE WOULD RECOMMEND THAT THAT WE PUT ON THE USE OF RECS TO JUST CONTINUE TO VALIDATE THEM TOWARDS OUR GOAL. AND THEN EVERY ELIGIBLE RENEWABLE RESOURCE IS AWARDED RECS FOR SOME RESOURCES, SPECIFICALLY SOLAR RESOURCES THAT MEET CERTAIN REQUIREMENTS. THEY ACTUALLY ARE ALSO AWARDED ON TOP OF A REC, WHAT'S CALLED A COMPLIANCE PREMIUM. I WILL TELL YOU THAT WE BELIEVE THAT FOR THOSE PARTICULAR RESOURCES THAT GET RECS AND COMPLIANCE PREMIUMS, YOU CAN'T YOU CANNOT UNCOUPLE THOSE, RIGHT. AND SO IF YOU'RE GOING TO RETIRE THE RECS, YOU RETIRE THE CP AS WELL. IF YOU'RE GOING TO SELL, SELL ONE OR THE OTHER, YOU SELL BOTH OF THEM. RIGHT. BECAUSE OTHERWISE YOU KIND OF MOVE AWAY FROM THE FROM THE FOR THE INTENT OF THAT PROGRAM. AND THEN FINALLY I DID PROVIDE IN YOUR BACKUP WAS CALLED THE EPA GREEN POWER PARTNERSHIP. THAT WAS COMPLETED WITH THE DEPARTMENT OF ENERGY.

THAT DOES PROVIDE GUIDANCE ON WHEN AND HOW YOU CAN COUNT RECS. IT WAS ALSO THE BASIS THAT THE INTERNAL AUDITOR USED FOR SOME OF HER RECOMMENDATIONS IN THE INTERNAL AUDIT THAT SHE THAT SHE DID. AND SO SOME OF THE FINDINGS THAT SHE HAD, HER AUDIT WAS BACK IN IN 2021, WAS THAT THE GOAL WAS NOT WELL DEFINED WITHIN THE DRP. AND CERTAINLY WE'LL MAKE SOME RECOMMENDATIONS ON THAT PARTICULAR GOAL. DO YOU COUNT THE RECS? DO NOT COUNT RECS. WHEN ARE RECS COUNTED, WHAT TYPES OF RECS AND WHAT HAVE YOU? THERE WAS NO FORMAL REPORTING REQUIREMENT ON GOAL PROGRESSION.

I WILL TELL YOU THAT SINCE 2022, EVERY YEAR AT THE END OF THE YEAR, WE PROVIDE THE COUNCIL AND ISR JUST BASICALLY GIVING YOU THE ACCOUNTING THAT I JUST SHOWED YOU IN MY LITTLE CHART ON WHERE WE STOOD WITH ACTUAL GENERATION VERSUS LOAD SERVE, HOW MANY RECS DID WE BUY, THAT SORT OF THING? WE'VE BEEN DOING THAT SINCE 2022. AND THEN. AGAIN, TO THE OTHER FINDING OF THE RECOMMENDATION WAS TO LOOK AT, YOU KNOW, HOW OUR LOAD IS EVOLVING. TAKE THOSE INTO CONSIDERATION ALONG WITH REGULATORY CHANGES, AND WE'LL TALK A LITTLE BIT ABOUT THOSE AND THEN EVALUATE THE COST AND BENEFIT OF REC AND CP RETIREMENTS. CERTAINLY THERE IS A MARKET FOR THOSE RECS AND THOSE CPS. AND SO WE COULD POTENTIALLY COUNT THE RECS AND AFTER WE'VE COUNTED THEM, MONETIZE THEM. I DON'T THINK THAT THAT'S THE SPIRIT OF THE RPS OR REALLY WHAT THE GUIDANCE IS. SO THAT IS NOT OUR RECOMMENDATION. OUR RECOMMENDATION WOULD BE THAT IF WE IF WE USE IF WE BUY A REC AND WE COUNT IT, WE RETIRE IT,

[00:15:01]

RIGHT? SO THAT IT CAN'T BE DOUBLE COUNTED DOWN THE LINE SOMEWHERE ELSE. BUT UNDERSTAND THAT THERE IS A MARKET FOR THAT. RIGHT NOW. THE RECS THAT WE BUY IN TOTAL, WE THINK, HAVE ABOUT A 5 TO $6 MILLION WORTH OF VALUE. SO WE WOULD BE FOREGOING THAT VALUE BY RETIRING THOSE RECS AND NOT MONETIZING THEM. BUT AGAIN, THAT IS NOT OUR RECOMMENDATION. JUST WANT TO GIVE YOU THAT THAT BIT OF INFORMATION AND THEN LARGE LOADS. OH YEAH. SO LARGE LOADS IS ANOTHER ITEM FOR CONSIDERATION. WE'VE SET THIS RIGHT NOW. FIVE MEGAWATTS SB SIX WAS RECENTLY APPROVED OR GOING THROUGH SB SIX. SB SIX ACTUALLY IDENTIFIES 75MW AS A LARGE LOAD. AND SO IF YOU'RE FAMILIAR WITH SB SIX AND THE INTERCONNECTION INTERCONNECTION REQUIREMENTS. AND SO WE'RE WE'RE TRYING TO EVALUATE WHAT THAT RIGHT NUMBER SHOULD BE. SHOULD BE FIVE SHOULD BE 20 SHOULD BE 75. AND SO AGAIN WHEN WE WHEN WE COME BACK FOR YOU, IF WE GET DIRECTION FROM YOU TO ESTABLISH THIS POLICY, WE WILL ESTABLISH THOSE PARAMETERS. BUT THOSE LARGE LOADS DO POSE A BIG RISK. RIGHT. AND SO YOU HAVE A DATA CENTER THAT COMES INTO TOWN AND YOU ENTER INTO A 15, 20 YEAR RENEWABLE CONTRACT, AND THEN THEY GO AWAY IN YEAR THREE. RIGHT. THAT COULD PUT YOU AT A, AT A, AT A VERY LONG ENERGY TYPE OF POSITION. RIGHT. THAT POSES A HUGE RISK TO THE PORTFOLIO AND CERTAINLY TO OUR RATEPAYERS. AND SO WE'LL BE WE'LL BE MAKING SOME SOME RECOMMENDATIONS HERE ABOUT HOW TO HANDLE THESE LARGE LOADS THAT WE THINK THAT WILL TAKE A REASONABLE AND PRUDENT STRATEGY TO EVALUATE THEM. NOT ALL LARGE LOADS ARE CREATED EQUAL. RIGHT. AND SO IF YOU HAVE A LARGE LOAD THAT'S MORE SPECULATIVE THAN ONE THAT'S REALLY BACKED BY GOOD FINANCIAL BACKING AND, AND GOOD STABLE COMPANIES, WE COULD TAKE A DIFFERENT APPROACH, MAYBE HAVE A SHORT TERM STRATEGY ON HOW TO COUPLE THAT WITH SOME RENEWABLE ENERGY, AND ALSO RECS, BUT MORE. I'LL TOUCH MORE ON THAT HERE IN A LITTLE BIT. SO HERE IN PART ONE, OUR RECOMMENDATION WOULD BE TO CREATE A CITY RENEWABLE ENERGY POLICY. CERTAINLY THIS WILL HAVE ALL THE VARIOUS COMPONENTS OF NORMAL CITY POLICIES. WE WOULD WORK WITH OUR HUMAN RESOURCE DEPARTMENT, WHO WHO HAS THOSE POLICIES AND WILL WALK THROUGH THAT PROCESS THAT WILL SET OUT THE GOAL AND THE INTERPRETATION OF WHAT THAT POLICY DIRECTION IS, WHAT THE ALLOWABLE RESOURCES ARE. CERTAINLY, WE BELIEVE TARGETING THE SAME RESOURCES THAT ARE IDENTIFIED IN THE RENEWABLE PORTFOLIO STANDARD PORTFOLIO STANDARD IS LIKELY A GOOD A GOOD SOURCE AND IN TREATMENT OF RENEWABLE ENERGY CREDITS AND CPS. YOU KNOW, CERTAINLY OUR OUR RECOMMENDATION HERE WOULD BE THAT IF WE'RE GOING TO COUNT THE RECS, WE'RE GOING TO RETIRE THEM IN THE YEAR IN WHICH WE COUNT THEM. IN ADDITION TO THAT, WE WOULD ONLY PURCHASE RECS THAT ARE ACTUALLY GENERATED IN THE SAME YEAR IN WHICH WE COUNT THEM. AND SO FOR 2024, I WOULD ONLY BY RECS THAT WERE GENERATED IN 2024, I'M NOT GOING TO BE BUYING RECS THAT ARE 2 OR 3 YEARS OLD. RIGHT. AND SO I THINK I THINK THAT KIND OF MIRRORS US AS CLOSELY AS WE CAN. AND IN DME TO SELL ANY EXCESS RECS. AND SO IF WE ARE IN A POSITION WHERE WE HAVE EXCESS RECS AND CP THAT WE'RE NOT COUNTING TOWARDS OUR 100% RENEWABLE GOAL, UNLESS THE COUNCIL WANTS TO SET A GOAL OF 150% RIGHT, THAT ANY EXCESS ABOVE THE 100%, WE WOULD THEN BE ABLE TO GO OUT THERE AND MONETIZE THEM AND SELL THEM IN THE MARKET. AND ALSO THAT WE WOULD NOT HOLD THEM TO ROLL OVER TO THE PREVIOUS YEAR. SO IF I'M IF I'M OVER ACCOUNTED FOR IN 2024 AND I HAVE A HANDFUL OF RECS, I'M NOT GOING TO LET THOSE ROLL OVER TO 2025. BECAUSE AGAIN, I THINK IT TAKES AWAY FROM THE SPIRIT OF KIND OF WHAT WHAT THE INTENT IS HERE AND THEN WHEN NEEDED TO MEET 100% RENEWABLE GOAL, DME WOULD PURCHASE RECS AND CP, YOU KNOW, BUT ONLY THOSE THAT ARE GENERATED, AS I MENTIONED ALREADY WITHIN THE SAME YEAR. AND THEN TREATMENT OF LARGE LOADS, YOU KNOW, WE WOULD OUR RECOMMENDATION IS TO EVALUATE THOSE LARGE LOADS ON WHETHER OR NOT WE NEED TO ENTER INTO A LONG TERM, SHORT TERM CONTRACTS FOR RENEWABLE ENERGY. BUT THE UNDERLYING RECOMMENDATION HERE IS THAT FOR THOSE LARGE LOADS, CERTAINLY IN THE SHORT RUN, WE WOULD RECOMMEND TO PURCHASE RECS TO OFFSET THE ENERGY THAT THOSE FACILITIES MAY BE USING. THEN THE POLICY WOULD ALSO INCLUDE A VERY DETAILED GOAL CALCULATION. THAT WAY IT'S CLEAR ON ON HOW WE'RE GOING TO ACCOUNT AND REPORT BACK TO YOU ON AN ANNUAL BASIS WHERE WE STAND WITH THAT GOAL. AND THEN FINALLY, PROBABLY ABOUT A TEN PAGE GLOSSARY OF ACRONYMS THAT I KNOW YOU GUYS LOVE FOR ME TO SAY WHEN WE GET UP HERE. BUT SO WITH THAT, I'LL STOP THERE AND SEE IF YOU HAVE

ANY QUESTIONS. >> THANK YOU. QUESTIONS FOR STAFF REPRESENTATIVE FROM

DISTRICT THREE. >> APPRECIATE THE DISCUSSION. I'M NOT SURE IF YOU SAID THIS OR NOT, BUT WOULD YOU ONLY BE ADVOCATING PURCHASING RECS FROM GENERATORS OR WOULD WE PURCHASE THEM KIND OF ON THE SECONDARY MARKET IF YOU WILL, EVEN THOUGH THEY'RE IN THE SAME YEAR.

[00:20:02]

>> SO THEY'RE THEY'RE ALL SOLD. >> IN, IN THE, IN THE SECONDARY MARKET.

>> SO THERE IS NO PURCHASING DIRECTLY FROM A GENERATOR. NO SUCH THING.

>> THE ONLY WAY YOU COULD DO THAT IS IF YOU IF. >> IF YOU ENTER INTO A PPA. SO IN THE PPA, THOSE RECS INSTEAD OF GOING TO THE GENERATOR COME INTO OUR ACCOUNT.

>> SURE. AND THEN IS THERE ANY WAY TO KNOW HOW MANY TIMES LIKE HOPEFULLY ZERO TIMES THE REC HAS

PASSED THROUGH SOMEBODY ELSE'S HAND BEFORE YOU BUY IT? >> YEAH.

>> AND I THINK AND I THINK THAT'S THE REASON WHY WE WOULD RECOMMEND THAT WE ONLY BUY THOSE WRECKS THAT ARE GENERATED IN THAT YEAR BECAUSE IT MINIMIZES THAT, THAT POSSIBILITY.

>> BUT THE POSSIBILITY STILL EXISTS OR. >> IT MIGHT EXIST. YES.

>> THERE'S NO WAY TO KNOW WHEN YOU WHEN YOU MAKE THE PURCHASE. >> NO, I DON'T BELIEVE SO.

>> OKAY. AND THEN REGARDING I UNDERSTAND THE KIND OF BOUNDARIES YOU'RE SUGGESTING REGARDING SAME YEAR. BUT REGARDING SELLING THEM. AT ALL. YOU KNOW, ONCE YOU KNOW WHEN THEY'RE EXCESS AND NOT IN THE FOLLOWING YEAR. I MEAN, I HATE TO SOUND LIKE HAIR ON FIRE, BUT ISN'T IT A LITTLE? NOT ON OUR PART. MAYBE PARTIALLY ON OUR PART, BUT ISN'T IT SORT OF FRAUDULENT, LIKE THE BASIC IDEA OF BUYING A REC THAT'S ALREADY BEEN BOUGHT? ISN'T IT A

FUNDAMENTALLY FRAUDULENT THING TO DO FOR THE PURCHASER? >> NO, I THINK THE I THINK. THE MARKET AND THE MARKET IS THERE. AND SO CERTAINLY IT'S AN ACCEPTABLE WAY TO ACQUIRE THOSE RECS. I MEAN, YOU COULD BUY RECS OUTSIDE OF THE STATE OF TEXAS. WE'RE NOT RECOMMENDING THAT YOU BUY RECS OUTSIDE OF THE STATE OF TEXAS. WE WOULD ONLY LIMIT THEM TO THOSE THAT ARE GENERATED

WITHIN THE STATE OF TEXAS. AND SO WHAT? >> SORRY.

>> GO AHEAD. NO, NO. >> I'M WELL, YOU KNOW, IT'S HARD FOR ME TO JUST EVEN SORT OF IMAGINE WHAT IS THE NON-FRAUDULENT POTENTIAL USE OF, YOU KNOW, OF A RECYCLED REC ANOTHER SOMEBODY, YOU KNOW, LIKE, LET'S SAY US. WE'VE ALREADY USED IT TO COUNT, YOU KNOW, TOWARD OUR RENEWABILITY. AND THEN IF SOMEBODY BUYS IT, WHAT IS THE SORT OF INNOCENT

USE, IF YOU WILL? >> YEAH. I MEAN, I THINK PEOPLE WOULD, WOULD BUY OUR EXCESS RECS JUST LIKE THEY'RE BUYING RECS IN THE, IN THE WHOLESALE MARKET. AND AGAIN, WE WOULD SELL THEM IN THE WHOLESALE MARKET. THEY WOULD BE USING THEM TO MEET THEIR OWN SUSTAINABILITY GOALS. NOW I WILL TELL YOU, YOU KNOW, THE LIKELIHOOD THAT WE WOULD HAVE EXCESS RECS IS PRETTY, PRETTY SMALL. AGAIN, REMEMBER YOU'RE TALKING ABOUT $1.50 PER MEGAWATT HOUR. SO IT'S A VERY SMALL DOLLAR AMOUNT. IT'S NOT NECESSARILY SOMETHING THAT THAT DME IS GOING TO HANG THEIR HAT ON AND SAY, WE GOT TO DO IT. CERTAINLY IF THE COUNCIL SAYS ANY RECS YOU HAVE, INCLUDING EXCESS RECS, WE'D LIKE FOR YOU TO MATURE ALL OF THEM, THEN WE WOULD MATURE THEM ALL.

>> OKAY, WELL, I'LL HEAR WHAT OTHERS SAY. >> TO THEM.

>> EXCUSE ME. >> REPRESENTATIVE DISTRICT ONE. >> SO MANY QUESTIONS. SO MANY QUESTIONS. I JUST STARTED WRITING QUESTIONS. AND YOU WOULD GO THROUGH AND ANSWER THEM, WHICH CAUSED ME TO HAVE ANOTHER QUESTION ABOUT THAT PARTICULAR ANSWER. SO PLEASE ALLOW ME TO SOUND VERY IGNORANT HERE, BECAUSE I'M JUST GOING TO JUST READ WHAT I, WHAT I WROTE HERE AND SEE IF IT ALL JUST KIND OF HELPS ME MAKE A LITTLE BIT MORE SENSE. THE FIRST THING THAT I QUESTION WAS, WHAT IS THE DIFFERENCE BETWEEN A REC AND ENERGY? BECAUSE I NOTICED THAT THOSE WERE CONNECTED AND I BELIEVE THE AS I UNDERSTAND NOW, I KNOW WHAT UNDERSTAND WHERE THE

REC IS. BUT WHERE DOES ENERGY COME FROM AGAIN? >> SO THE ENERGY COMES FROM THOSE RENEWABLE RESOURCES WIND, SOLAR, GEOTHERMAL. AND SO FOR EVERY ONE MEGAWATT THAT THEY GENERATE, THEY'RE AWARDED ONE REC. SO IT'S A SO IT'S A ONE FOR ONE.

>> IT'S A ONE FOR ONE. YES MA'AM. OKAY. AND HOW CAN ENERGY HOW CAN ENERGY BE OBTAINED WITHOUT RECS. I THINK YOU ANSWERED THAT THOUGH IS CAN YOU HAVE YOU CAN'T HAVE ENERGY WITHOUT HAVING THE RECS, OR YOU CAN'T HAVE THE RECS WITHOUT HAVING THE ENERGY. HOW WHAT WAS

THAT? >> WELL, FOR EXAMPLE. WELL, THE SHORT ANSWER IS YES. SO, SO MANY PEOPLE CONSIDER NUCLEAR AS AN EXAMPLE AS RENEWABLE. WELL, NUCLEAR DOES NOT RECEIVE RECS.

SO YOU COULD BUY NUCLEAR ENERGY AND NOT HAVE A REC. >> OKAY. AND I THINK YOU ANSWERED THIS. CAN YOU BUY BACK YOUR OWN. CAN YOU. IS THAT SOMETHING ABOUT THE ROLLOVER THAT I HEAR YOU SAY THAT WE DON'T WANT TO ROLL IT OVER, BUT PUTTING IT OUT THERE, MATURING IT, PUTTING IT OUT THERE AS A REQUIREMENT, WHY NOT JUST ROLL IT OVER?

>> SO WE COULD WE COULD VERY WELL DO THAT. SO IF I'M AT 101%, I COULD TAKE THAT 1% WITH THE RECS AND ROLL IT OVER INTO THE NEXT YEAR. BUT AGAIN, THE RECOMMENDATION HERE IS THAT WE'RE ONLY GOING TO COUNT RECS TOWARDS OUR GOAL THAT ARE GENERATED IN THE YEAR IN WHICH

[00:25:05]

THEY'RE GENERATED. >> OKAY. >> AND SO IF YOU ROLL OVER THAT 2024 REC TO 2025, YOU'VE KIND OF GOTTEN AWAY FROM THAT, FROM THAT PRINCIPLE.

>> AND THEN I UNDERSTOOD YOU TO SAY THAT ROLLING IT OVER IN, I MEAN, YOU BUYING IT IN THE YEAR THAT YOU'RE USING IT, IT SOUNDED LIKE THAT. THAT WAS A FAIRLY DIFFICULT THING TO DO. OR CAN YOU FIND RECS OUT ON THE MARKET FAIRLY EASILY? I MEAN, HOW DIFFICULT IS IT GOING TO BE FOR

YOU ALL TO CONNECT WITH THE RIGHT REC? >> YES. SO WHEN WE GET INTO INTO PART TWO OF THIS PRESENTATION, SOME OF THE CHALLENGES THAT WE'RE SEEING, CERTAINLY RIGHT NOW, THERE'S PLENTIFUL UTILITY, UTILITY SCALE RENEWABLE ENERGY. SO THERE'S A PLENTIFUL MARKET OUT THERE FOR RECS, BUT THERE COULD BE A TIME WHERE THAT COULD SLOW DOWN, AND THERE MAY NOT BE ENOUGH RECS TO PURCHASE OR EVEN RENEWABLE ENERGY TO PURCHASE AS WELL.

>> WHEN WE'RE GOING OUT AND ABOUT, OUT IN THE, YOU KNOW, IN THE YOUNGER LANDS RIGHT NOW AND WE'RE MAKING OUR WAY THERE. DO YOU HAVE TO PURCHASE MORE RECS OR IS IT JUST KIND OF THE SAME

AMOUNT. >> SO, SO WE'VE WE'RE WORKING ON A NUMBER OF PPAS NOW THAT, YOU KNOW, WE, WE BELIEVE THAT WE'RE GOING TO CONTINUE TO ADD SOME ADDITIONAL RENEWABLE ENERGY THAT THEY WILL COME ONLINE. AND WHEN THEY COME ONLINE WE'LL HAVE ADDITIONAL RECS THROUGH THOSE

CONTRACTS THAT THAT WILL BE TIED TO ENERGY. >> LARGE LOADS. I DON'T KNOW, I HAVE WIND A QUESTION WHEN YOU WERE TALKING I SEE IT AND I THOUGHT WIND, WIND. BUT I UNDERSTOOD THE COST. BUT WHEN ARE THOSE. I DIDN'T EVEN FINISH THE THING HERE. I THINK I WANTED TO KNOW WHAT WHEN WOULD SOMETHING LIKE THAT BE DONE? IF YOU ARE, I DON'T KNOW, LARGE

LOADS. WHAT DOES LARGE LOADS DO AGAIN? >> SO LARGE LOADS INCLUDES THINGS LIKE DATA CENTERS OKAY. YES. YES MA'AM. SO BOTH YOU KNOW TIER ONE, TIER ZERO WHICH ARE YOUR CRYPTO MINERS OR A VARIETY OF OTHER TIERS THAT INCLUDE I COMPUTING. RIGHT. AND SO THAT'S WHAT WE MEAN WHEN, WHEN WE WHEN WE SAY LARGE LOADS. BUT THERE COULD BE OTHER TYPES OF MANUFACTURERS OR OTHER TYPES OF LIGHT INDUSTRIAL THAT COULD CERTAINLY BE A LARGE LOAD WHERE IT'S A SINGLE USE THAT'S FIVE MEGAWATTS TOTAL. AND SO FOR THOSE PARTICULAR LARGE LOADS THAT COULD DISAPPEAR TOMORROW, YOU KNOW, ENTERING INTO THOSE LONG TERM 15, 20 YEAR CONTRACTS COULD COULD PUT US IN A VERY LONG POWER POSITION. AND, AND FRANKLY, THAT POWER IS COMING FOR BOTH WIND AND SOLAR CURRENTLY AT SOME OF THE LOWEST PRICE TIMES OF THE DAY. AND SO WE'RE ENTERING INTO THESE CONTRACTS CURRENTLY WE'RE LOOKING AT CONTRACTS, YOU KNOW, IN THE $60 RANGE WHEN THAT POWER IS ACTUALLY SOLD INTO THE MARKET AT AT A FRACTION OF THAT, SOMETIMES BELOW $30. AND SO THE POSSIBILITY OF YOU TAKING A, YOU KNOW, EVEN MORE LOSSES WITHOUT

AN END CUSTOMER TO SERVE BECOMES A CHALLENGE. >> WOULD A. OVER WATSON CENTER BOULEVARD, ALL OF THAT LARGE MANUFACTURING AND WAREHOUSING AND YOU KNOW, ALL OF THAT. IS

THAT ALSO CONSIDERED LARGE LOADS? >> YES AND NO. THEY CERTAINLY DON'T REACH THE FIVE MEGAWATT SINGLE USE. BUT BUT THERE ARE CONSIDERABLE LOAD. I MEAN, THEY'RE PART OF OUR GENERAL SERVICE LARGE CUSTOMER CATEGORY, BUT THEY CERTAINLY DON'T COME

ANYWHERE NEAR FIVE MEGAWATTS. >> OKAY. THAT'S ALL THE QUESTIONS THAT I HAVE. THANK

YOU. >> OKAY. ANYONE ELSE ANY OTHER QUESTIONS FOR STAFF

REPRESENTATIVE DISTRICT TWO. >> THANK YOU. I APPRECIATE ALL THE FOCUS ON RECS. I MEAN, IT'S CLEARLY THE WAY WE ARE TRYING TO ACHIEVE. OUR 100% RENEWABLE GOALS WITHOUT LITERALLY PURCHASING 100% RENEWABLE. SO I HAVE SIMILAR QUESTIONS AS SOME OF THE OTHER COUNCILORS. WHEN FOR ALL OF OUR POWER PURCHASES THAT ARE NOT ON THE SPOT MARKET. SO EVERYTHING WITH RENEWABLE WIND AND SOLAR, WE'RE GETTING ALL THE RECS FROM ALL THE MEGAWATTS WE'RE NEVER JUST PURCHASING. I MEAN, IT MIGHT BE RENEWABLE POWER, BUT WE NEVER HAVE AN UNDERAGE OF RECS. IF WE BUY A 100MW OF WIND, WE GET ALL 100MW OF RECS ASSOCIATED WITH IT. CORRECT? WELL, SO.

>> SO THE RECS THAT GO INTO OUR ACCOUNT ARE ONLY FROM OUR PPAS. AND SO IF WE'RE BUYING ENERGY IN THE MARKET AND THAT MIX OF ENERGY IS 30% RENEWABLE WITH 30% SOLAR, YOU KNOW, MAYBE 20% WIND,

[00:30:10]

WE DON'T GET THE RECS FROM THAT PARTICULAR ENTITY. IT'S ONLY OUR CONTRIBUTION FROM THE PPAS THAT WE GET THE RECS NOW, WE THEN THE RECS THAT WE'RE BUYING ABOVE AND BEYOND WHAT WE GET FROM THE PPAS. THOSE ARE COMING FROM ENERGY THAT OTHER OTHER PEOPLE BUY AND HOLD, AND THEN THEY

MONETIZE THOSE RECS. >> SO LET ME RESTATE IT. SO BECAUSE I THINK I UNDERSTOOD YOU AND YOU TELL ME IF I'M CORRECT. SO FOR EVERYTHING ON OUR PPAS WE GET ALL THOSE RECS. BUT IF WE HAVE TO GO OUTSIDE OUR PPA TO THE SPOT MARKET, WHETHER IT'S RENEWABLE OR NOT, WE MAY OR MAY NOT. WE'RE WE'RE GOING TO SECONDARY MARKET TO GET RECS TO COVER ALL THAT POWER

CONSUMPTION. IS THAT CORRECT? WELL. >> WE BUY 100% OF ALL OUR POWER FROM THE MARKET. AND THEN AND THEN THE POWER THAT'S THAT'S GENERATED FROM THE PPAS IS SOLD INTO THE MARKET. AND THEN THAT BECOMES REVENUE TO US TO OFFSET THOSE PURCHASES.

>> OKAY. AND THEN. FOR THE JUST JUST TO CONFIRM HOW I UNDERSTAND SORT OF HOW THE LARGER ERCOT WORKS, THE RECS THAT WE ARE PURCHASING, LET'S, LET'S SAY, AGAIN, A WIND FARM GENERATED 100 MEGAWATT, AND THEY SOLD THAT POWER. AND FOR SOME REASON, PEOPLE DIDN'T WANT THE RECS AND THEY JUST WANTED THE POWER, BECAUSE NOT EVERYBODY HAS THE SAME 100% REQUIREMENT THAT THE CITY OF DENTON DOES. IS IT TRUE THAT ALL THE RECS THAT WE PURCHASE ARE ASSOCIATED WITH ELECTRONS THAT WENT INTO SERVICE LOAD? THERE WAS NO THERE WAS NO RECS THAT WENT IN FOR CURTAILED PURPOSES OR SOMEHOW DID NOT GET INTO THE GRID TO SERVICE SOME LOAD.

>> CORRECT. SO FOR EVERY MEGAWATT OF POWER THAT'S GENERATED, IT'S ONE REC THAT'S

AWARDED. >> AND THEN. FOR THIS MAY BE THIS MAY BE THE SECOND PART. AND YOU CAN YOU CAN TELL ME IF IT IS THE UPCOMING PART. BUT I'M STILL A WRECK. QUESTION FOR THE RECS THAT ARE COVERING THE ELECTRONS NEEDED BY OUR SERVICE PROVISION INTERNALLY IN OUR OWN DISTRIBUTION GRID, YOU KNOW, WE'RE WE'RE WE'VE GOT PPAS. FOR SOME. YOU'LL GO ON TO SAY IN A SECOND, LIKE, YOU KNOW, WE SORT OF HAVE A DEFICIT OF ABOUT 183MW COMPARED TO THE 225 THAT ARE COMING OFF THE DECK. BUT. ARE ARE WE FOR ALL THE ELECTRONS GENERATED BY THE DECK? ARE WE

HAVING RECS COVER ALL THOSE MEGAWATTS? THE 225. NO. >> SO. WE'RE IT'S INTRINSICALLY BUNDLED IN OUR POWER NEEDS, BUT WE'RE NOT COVERING IT IN OUR REC REQUIREMENTS FOR OUR CONSUMPTION FOR WHAT REASON? WHY ARE WE NOT INCLUDING THE 225 OFF THE DECK? WHY ARE WE NOT HAVING 225MW

WORTH OF RECS TO COVER THE DECK? >> SO. >> SO THE DECK, THE DECK GENERATES REVENUE TO OFFSET THE COST OF THE LOAD THAT WE SERVE. RIGHT. AND SO THE LOAD YOU'RE SERVING THE LOAD REGARDLESS OF WHAT IS GENERATED FROM THE DECK. RIGHT. SO I GUESS INTRINSICALLY YOU COULD SAY THAT THE POWER THAT'S, THAT'S THAT'S GENERATED THROUGH THE RECS BY, BY BUYING A 100% RENEWABLE ENERGY OR RECS TO SERVE THE LOAD, YOU'RE IN ESSENCE COVERING THAT.

>> YOU'RE DOUBLE DIPPING. OKAY. YOU ARE YOU ARE. BECAUSE WE COULDN'T WE COULDN'T PULL THE DECK OUT OF THE OUT OF OUR POWER PORTFOLIO AND OR INCLUDE IT. EITHER WAY, YOU'RE KIND OF TRYING TO SPLIT HAIRS THERE. ALL RIGHT. SO LET ME MOVE ON TO ANOTHER QUESTION. CAN ROOFTOP SOLAR PEOPLE REGISTER AND TRACK THEIR RECS? I KNOW THAT WE HAVE 7 TO 10GW OF BTS IN IN THE CITY

OF DENTON. >> NO, THEY'RE NOT AWARDED RECS BECAUSE THEY'RE TIED INTO OUR

DISTRIBUTION SYSTEM, NOT TO THE TRANSMISSION SYSTEM. >> IS THERE IS THERE A MECHANISM WHERE THEY CAN TRANSFER THE ABILITY TO, IN SORT OF VIRTUAL POWER PLANT KIND OF WAY TO THE

CITY OF DENTON TO BE COUNTED. >> SO, SO THE CITY OF SAN ANTONIO, CPS ENERGY ACTUALLY HAS A PROGRAM WHEREBY THEY DO THAT, BUT THEY ONLY DO THAT WITH COMMERCIAL CUSTOMERS. THEY DON'T

[00:35:04]

DO THAT WITH RESIDENTIAL CUSTOMERS. AND SO THEY'VE CREATED KIND OF THEIR OWN LOCAL RENEWABLE ENERGY CREDIT. BUT AGAIN, SO BASICALLY WHAT YOU'RE ASKING THE HOMEOWNER IS TO BASICALLY GIVE AWAY THEIR RIGHTS TO SAY THAT THEY ARE 100% RENEWABLE OR THAT THEY HAVE RENEWABLE ENERGY. THEY'RE GIVING THAT RIGHT TO THE CITY TO COUNT TOWARDS THEIR GOAL, NO DIFFERENT THAN WHAT A REC DOES. RIGHT? SO THE REC IS BASICALLY THE PROPERTY RIGHTS THAT GIVES YOU THE DEED TO SAY THAT YOU'RE YOU OWN THAT ENERGY OR YOU OWN THE, THE RENEWABLE NESS OF THAT ENERGY. AND SO THAT'S WHAT SAN ANTONIO HAS DONE. BUT IT'S ONLY WITH COMMERCIAL CUSTOMERS.

>> WELL, I ENCOURAGE US, IT'S PROBABLY FOR THE SECOND PART, BUT I ENCOURAGE US TO CONSIDER THE OPPORTUNITIES FOR THAT BECAUSE YOU'RE YOU'RE LEAVING 7 TO 10,000MW OF, OF RECS ON THE TABLE THAT COULD COUNT TOWARDS YOUR GOAL AND, AND HELP OFFSET SOME OF THE REQUIREMENTS THAT WE HAVE. AND YOU COULD SET SOMETHING UP TO ALLOW YOU TO REASONABLY GET THOSE IN SOME SORT OF AGREEMENT. AND EVEN IF YOU ONLY GOT HALF OF THEM, YOU'RE STILL LOOKING AT, YOU

KNOW, FIVE TO WHATEVER, YOU KNOW, 4 TO 5, WE. >> CAN TRY TO LOOK AT THAT AND,

AND COME BACK WITH YOU WITH A RECOMMENDATION ON THAT. >> MY, MY LAST QUESTION FOR THIS SECTION IS FOR THE LARGE LOADS. ONE OF THE REASONS, AS I RECALL, THAT YOU WERE SETTING THE FIVE MEGAWATT AS SORT OF THE THRESHOLD IS, IS AND YOU MENTIONED THIS IN THE BACKUP IT WAS TO TRY TO ADDRESS SOME OF THE STABILITY ISSUES. AND YOU MENTIONED, YOU KNOW, IS THIS A BUSINESS THAT'S GOING TO BE HERE? ARE WE GOING TO BE ON THE HOOK FOR A LARGE PPA. AND MAYBE IT'S A PRUDENT FLEXIBILITY OPTION TO SAY, WELL, INITIALLY WE'RE GOING TO COVER YOU WITH RECS RATHER THAN A, AN ACTUAL POWER PURCHASE AGREEMENT. I DON'T I THINK THAT'S THAT SEEMS VERY REASONABLE TO ME. HAVING SAID THAT, IT TAKES YOU EXTRA SERVICE TIME, EXTRA STAFF TIME, EXTRA TIME TO GO TO THE MARKET TO BUY THE RECS TO COMPENSATE FOR THINGS. IS THERE A MECHANISM WHERE THAT EXTRA COST TO DME CAN BE ABSORBED DURING THE PROBATIONARY PERIOD? TO COMPENSATE FOR YOU HAVING TO DO MORE WORK? IT'S HARDER TO DO MORE WORK THAN A PPA. THAT'S WHY YOU WANT TO DO A PPA. IS THERE A IS THERE A WAY TO GET BACK THAT DIFFERENTIAL LOAD ASSOCIATED WITH HAVING TO GO? I MEAN, IT GIVES US FLEXIBILITY, BUT IS THERE A WAY TO GET COMPENSATED BY THE END USER AT A DIFFERENT RATE STRUCTURE, PERHAPS TO COVER THAT?

>> SO, SO SOMETHING THAT WILL BE COMING TO YOU HERE IN A, IN A VERY NEAR FUTURE IS KIND OF ANOTHER QUARTERLY REVIEW OF OUR AND OUR TCF. AND PART OF THE RECOMMENDATION THERE, I'LL JUST GIVE YOU A LITTLE BIT OF A HEADS UP HERE IS THE POTENTIAL CREATION OF A SEPARATE ECA FOR LARGE LOADS. WITHIN THAT ECA, WE WOULD EMBED ALL OF THE COSTS ASSOCIATED WITH THE RENEWABLE ENERGY CREDITS THAT ARE PURCHASED FOR THAT PARTICULAR LOAD, AND THAT PASSED ON TO THOSE LARGE LOADS, JUST LIKE WE DO TODAY WITH WITH ALL OUR OTHER CUSTOMERS, THE EFFORT, THE STAFF EFFORT AND THE COST, THE OPERATING COST TO MANAGE ALL THAT. YOU KNOW, JOSE'S TIME, HIS STAFF'S TIME, EQUIPMENT THAT WE HAVE, WHAT HAVE YOU ALL OF THAT IS ALREADY EMBEDDED AND RECOVERED THROUGH OUR BASE RATES, OF WHICH LARGE LOADS ARE ALREADY PAYING FOR.

>> OKAY. YEAH, I, I'M INTERESTED IN HEARING MORE BECAUSE I THINK WE'RE A LITTLE BIT TOO ONE SIZE FITS ALL. AND I'D LOVE TO SEE A LITTLE MORE FLEXIBILITY IN FIDELITY IN, IN WHO'S CAUSING US TO SERVE DIFFERENT OPPORTUNITY COST STRUCTURES. SO I'M INTERESTED IN THAT COMING BACK.

I THINK THAT'S ALL MY QUESTIONS FOR THIS SECTION. >> TONY, I WANT TO TONY, I WANT TO GIVE YOU AN OPPORTUNITY TO RESPOND. WILD ACCUSATIONS. MY WORDS NOT YOURS. THERE'S THE AND I DIDN'T GET THE EXACT WORD. SOME KIND OF ILLEGAL COMPONENT WAS THROWN OUT THERE. SOME KIND OF DOUBLE DIPPING COMPONENT THROWN OUT THERE. I JUST WANT YOU TO HAVE AN OPPORTUNITY TO RESPOND. I, YOU KNOW, I DON'T PERSONALLY, I DON'T APPRECIATE IT BECAUSE AND LET ME QUALIFY THAT MY UNDERSTANDING IS YOU'RE PRESENTING INFORMATION AND SEEKING DIRECTION. SO IF THIS COUNCIL DECIDES TO GIVE YOU DIRECTION TO DO SOMETHING DIFFERENT, YOU ACT ON THAT.

YOU'RE JUST PRESENTING INFORMATION, MY UNDERSTANDING. >> YES, SIR.

>> SO YOU DON'T HAVE A DOG. YOU DON'T. YOU DON'T HAVE A POSITION IN THIS. YOU'RE JUST SAYING THIS IS WHAT WE'RE DOING. GIVE ME FEEDBACK. SO I THINK THE DOUBLE DIPPING ACCUSATION IS WILDLY ACCUSATORY. AND SO I DON'T WANT TO PUT YOU ON THE SPOT TO HAVE TO SAY ANYTHING. I NEED TO SAY

[00:40:05]

WHAT I NEEDED TO SAY. BUT I DO WANT TO GIVE YOU AN OPPORTUNITY. I MEAN, YOUR SUBJECT MATTER EXPERT, I DON'T THINK YOU DESERVE IT. AND SO THOSE TYPE OF WORDS. SO I DO WANT TO GIVE YOU

THE FLOOR IF YOU WANT IT. >> SO, SO GENERALLY THE RECS WHEN PEOPLE BUY RECS IT'S TO OFFSET CARBON. AND SO, SO TO BUY RECS TO OFFSET THE 220MW OF GENERATION FROM, FROM THE DECK.

WELL, WHILE CERTAINLY CARBON IS A BYPRODUCT OF GENERATING POWER AT THE DECK, THERE'S A NUMBER OF OTHER BYPRODUCTS. I KNOW THERE'S A NUMBER OF SCIENTISTS HERE, RIGHT. THAT COULD PROBABLY SPEAK TO THAT AS WELL, THAT THE RECS WOULDN'T NECESSARILY OFFSET. YOU KNOW, CERTAINLY THERE'S ALSO CARBON OFFSETS THAT COULD BE PURCHASED. BUT AGAIN, THAT IGNORES A NUMBER OF OTHER PARTICULATE MATTER THAT'S THAT'S PRODUCED FROM THE DECK. SO I DON'T OUR RECOMMENDATION WOULD NOT BE TO BUY RECS TO OFFSET THE POWER THAT'S GENERATED FROM THE FROM THE DECK. WE THINK THAT BUYING RENEWABLE ENERGY CREDITS AND RECS TO FILL THE GAP TO MEET THE LOAD IS REALLY WHAT THE

ULTIMATE INTENT HERE IS IN CALLING YOURSELF 100% RENEWABLE. >> OKAY, ANY OTHER QUESTIONS FOR

STAFF REPRESENTATIVE DISTRICT FIVE? CAN YOU. >> EXPLAIN TO ME WHAT. WHAT SB

SIX WILL DO FOR OUR DECK? EITHER ONE OF Y'ALL? >> YEAH. THAT'S A SO OUR INTEREST IN IN SB SIX WAS REALLY TO SEE HOW THE STATE WAS GOING TO IDENTIFY THAT LARGE LOAD KIND OF WHAT THAT MEASURE WAS. AND SO THAT MEASURE THAT'S IN LEGISLATION IS 75MW. NOW THEY ALSO PUT ADDITIONAL LANGUAGE IN THERE THAT THE PUC, WHO ULTIMATELY HAS TO ESTABLISH ALL THE RULES FOR INTERCONNECTING THESE LARGE LOADS INTO THE TRANSMISSION GRID, THE PUC MIGHT DECIDE THAT THAT NUMBER NEEDS TO BE 25MW OR 50 OR SOME OTHER NUMBER OTHER THAN 75. AND SO WE WERE TRYING TO GAUGE THAT, TO TRY TO USE IT AS A BASIS FOR HOW WE ESTABLISHED KIND OF A LARGE LOAD HERE INTERNALLY. AND WE STILL BELIEVE TODAY THAT FIVE MEGAWATTS FOR DME, FOR THE PURPOSES OF THIS POLICY IS, IS THE RIGHT NUMBER, BUT IT COULD BE SLIGHTLY HIGHER. THE OTHER CHALLENGE THAT WE HAVE IS THAT IN TRYING TO INTERCONNECT THOSE LARGE LOADS, AS AS YOU MAY RECALL, CURRENTLY WE'RE FACING TRANSMISSION OVERLOADS. AND SO THE AMOUNT OF POWER THAT WE CAN GIVE SOMEBODY TODAY WITHOUT EXACERBATING THOSE, THOSE OVERLOADS AND HAMPERING EXISTING DEVELOPMENT FROM CONTINUING TO DEVELOP, WOULD BE LESS THAN FIVE MEGAWATTS. AND SO THAT WAS KIND OF THE BASIS FOR THE FIVE MEGAWATTS. BUT AGAIN, BUT THE SB SIX IS REALLY MORE ABOUT INTERCONNECTING THOSE LARGE LOADS TO THE TRANSMISSION GRID. BUT AGAIN, WE WERE GOING TO LOOK TO SEE WHAT THAT NUMBER WAS AND SEE IF WE COULD TIE THOSE TWO TOGETHER.

>> TO DO WE STILL ■HAVE THE FLEXIBILITY. IF THE GOVERNOR SIGNS SB SIX TO DEFINE A LARGE LOAD AS FIVE MEGAWATTS, OR DOES IT HAVE TO NOW BE WHATEVER THE PUC DECIDES?

>> YEAH, ABSOLUTELY. THERE WILL BE A WHOLE RULEMAKING PROCESS AT THE PUC. ANDREW KIEFER, WHO'S BEEN OUR LEGISLATIVE GUY IN AUSTIN, WILL NOW SHIFT TO MORE OF THE REGULATORY. AND SO HIS JOB IS TO BE AT THE PUC AND, AND BE ADVOCATING FOR OUR RATEPAYERS THERE. AND SO, ABSOLUTELY, THERE'S STILL GOING TO BE A LOT OF DISCUSSIONS. I CAN TELL YOU THAT LARGE LOADS WANT THAT

NUMBER TO BE LOWER. >> SURE. OKAY. YEAH, I WOULD ASSUME SO. THAT'S WHY I'M ASKING. SO LET ME ASK ANOTHER QUESTION. WHAT DOES SB SIX SAY ABOUT COST AS RELATED TO THESE

LARGE LOADS. >> SO MUNICIPAL UTILITIES AND CO-OPS ARE EXEMPT FROM THE PROVISIONS OF SB SIX. BUT SB SIX NOW WILL MANDATE THAT LARGE LOADS PAY FOR THEIR FULL COST TO INTERCONNECT INTO THE TRANSMISSION GRID. IN ADDITION, THERE WILL BE ADDITIONAL STUDY COSTS ABOUT $100,000 THAT THEY HAVE TO PAY FOR THESE NUMBER OF STUDIES THAT HAVE TO HAVE TO BE DONE. I WILL TELL YOU, COUNCIL MEMBER, OUR RECOMMENDATION WILL BE TO DO THE VERY SAME THING.

RIGHT? SO FOR LARGE LOADS GOING FORWARD, WE'RE GOING TO BE ADVOCATING FOR THEM TO PAY THEIR FULL BOAT AND PROBABLY EVEN SOME ADDITIONAL COST BY WAY OF SECURITY TO THE CITY TO PROTECT

OUR RATEPAYERS. >> PERHAPS I'M WRONG. I THOUGHT LARGE LOADS WERE ALREADY PAYING FOR THEIR FULL FREIGHT. HOW MUCH? LIKE WHAT? WHAT'S THE PERCENTAGE THAT THEY'RE

CURRENTLY PAYING? CAN YOU DO THAT MATH REAL QUICK? >> WELL, PART OF THE CHALLENGE, ESPECIALLY WITH THESE CRYPTO MINERS, THE WAY THAT THEY WOULD PAY FOR A LOT OF THESE COSTS,

[00:45:01]

WOULD BE THROUGH TRANSMISSION COST OF SERVICE. RIGHT. AND SO WHEN A CRYPTO MINER COULD SHUT DOWN DURING THOSE FOUR HOURS, THEY COULD COMPLETELY AVOID THAT. RIGHT? AND SO THEY WERE AVOIDING THOSE COSTS. AND SO THAT'S ONE OF THE REASONS WHY SB SIX IS NOW MANDATES THAT THEY

PAY THOSE COSTS. >> OKAY. AND I APPRECIATE THAT EXPLANATION. DO WE KNOW. WHEN THIS IS GOING THROUGH THE PROCESS. WHAT WAS OUR POSITION ON THIS BILL. DO WE REGISTER

SUPPORT OR A FAVOR OR DISFAVOR OR WHAT ARE WE DO WE KNOW. >> SO INITIALLY THROUGH OUR MEMBERSHIP IN THE TEXAS PUBLIC POWER ASSOCIATION WAS WE WERE NOT IN FAVOR OF THE BILL. I THINK SOME OF THE AMENDMENTS TOOK US TO MORE OF A NEUTRAL POSITION. BUT BUT CERTAINLY I THINK THERE'S STILL SOME CHALLENGES AND STILL A LOT OF WORK TO BE DONE AT THE PUC THAT WE THINK THERE WILL BE OPPORTUNITIES THERE FOR US TO CONTINUE TO ADVOCATE.

>> OKAY. AND LAST QUESTION, IF YOU DON'T MIND, WITH RESPECT TO REPURCHASING RECS, CAN YOU JUST EXPLAIN TO ME HOW WE CAN HOW ARE WE STILL GOING TO BE CONSIDERED 100% RENEWABLE IF WE'RE

REPURCHASING RECS? >> SO THE SO AGAIN, SO THE RECS THAT WE WOULD BUY RECS THAT WE DON'T OUTRIGHT OWN. THROUGH THROUGH PPAS, THOSE RECS, WHILE WE DON'T KNOW IF THEY'VE BEEN SOLD BEFORE OR NOT, OUR INTENT IS TO TRY TO MINIMIZE THAT OPPORTUNITY BY ONLY BUYING RECS THAT WERE GENERATED IN THE SAME YEAR IN WHICH WE COUNT THEM. AND SO WE BUY RECS ON A CONTINUAL BASIS. OUR STAFF DOES PROJECTIONS ON WHERE WE BELIEVE WE'RE GOING TO BE. IF WE BELIEVE THAT WE'RE GOING TO BE SHORT THROUGHOUT THE YEAR, WE'RE BUYING RECS ON A CONTINUAL BASIS, AND THEN WE DO A RECONCILIATION AT THE END OF THE YEAR. AND IF WE'RE SHORT ADDITIONAL RECS, THEN WE GO OUT THERE AND WE BUY THOSE RECS WITHIN THOSE PARAMETERS.

>> OKAY. THANK YOU TONY. >> YES, SIR. >> ANY OTHER QUESTIONS FOR STAFF? OKAY. AND I JUST ONE QUESTION. I JUST NEED TO CONFIRM NONE OF THIS POLICY TIES US TO CONTINUING DOWN THE ROAD OF 100% RENEWABLE ACCOUNTING. IF AT SOME POINT THAT BECOMES FISCALLY BETTER TO DEVIATE FROM THAT FROM A FROM, WE'RE ABLE TO STILL DO THAT WITH THIS POLICY IN PLACE.

>> ABSOLUTELY. AND SO YES, SIR. ALL RIGHT. THANK YOU. AND WE'LL TALK A LITTLE BIT ABOUT THAT WITH THIS INTEGRATED RESOURCE PLAN OKAY. AND SO GOING INTO PART TWO PART OF OUR RECOMMENDATION IS TO DEVELOP A WHAT'S CALLED AN INTEGRATED RESOURCE PLAN. THIS IS A LONG TERM STRATEGY DOCUMENT THAT ADDRESSES BOTH ELECTRIC DEMAND ON THE SUPPLY SIDE, BUT ALSO ON THE DEMAND SIDE. I KNOW I KNOW, WE'VE WE'VE HAD A LOT OF CONVERSATIONS WITH MANY OF YOU AND MEMBERS OF THE PUBLIC AS WELL ABOUT DEMAND SIDE MANAGEMENT AND, AND THINGS LIKE CONTROLLABLE THERMOSTATS AND A NUMBER OF OTHER POTENTIAL PROGRAMS OUT THERE. I WILL SAY THAT THE STATE IS CURRENTLY WORKING ON A POTENTIAL DEMAND SIDE PROGRAM FOR RESIDENTIAL CUSTOMERS. IT'S SOMETHING THAT WE THAT WE PARTICIPATED WITH THEM, PROVIDED SOME FEEDBACK, AND WE HOPE THAT AT SOME POINT THAT WOULD BE AVAILABLE TO CUSTOMERS, WE CERTAINLY WANT TO MAKE THAT AVAILABLE TO OUR CUSTOMERS, BECAUSE AT THE END OF THE DAY, WHETHER YOU PARTICIPATE OR NOT, ALL THOSE COSTS WILL BE BORNE BY THE ENTIRE MARKET. RIGHT? AND SO BUT WE DON'T KNOW CURRENTLY WHAT ALL THAT ENTAILS. ONE THING THAT THAT IT WILL ENTAIL, THOUGH, IS THAT IF THE STATE CREATES A DEMAND SIDE PROGRAM FOR RESIDENTIAL AND YOU HAVE ONE LOCAL, THAT THAT CUSTOMER CANNOT PARTICIPATE IN, BOTH. RIGHT. AND SO THERE WON'T BE THAT DOUBLE DIP. BUT AGAIN, THIS, THIS, THIS PLAN SPANS A 15 TO 20 YEAR LIFE. I CAN TELL YOU THAT 15 TO 20 YEARS GOES BY REALLY, REALLY QUICK. YOU KNOW, IF IT WAS MY WAY, I'D PROBABLY SAY MORE LIKE 30 OR 40 YEARS.

BUT WITHIN THAT 15 OR 20 YEAR CYCLE, EVERY FIVE YEARS, THAT PROGRAM, THAT PLAN WOULD BE REEVALUATED. RIGHT. AND SO IT IS A LIVING DOCUMENT. KEY POINTS IN HERE IS REALLY A COMPREHENSIVE APPROACH, NOT A ONE SIZE FITS ALL. I THINK YOU KNOW, WHAT I'VE MENTIONED TO SOME OF YOU IN THE PAST IS, YOU KNOW, YOU WOULD NOT TAKE YOUR ENTIRE LIFE SAVINGS AND ALL, PUT IT ALL IN MCDONALD'S STOCK, RIGHT? UNFORTUNATELY, IN MANAGING OUR PORTFOLIO, THAT'S WHAT WE'VE DONE. WE'VE WE'VE PUT OUR ENTIRE STOCK OTHER THAN 225MW IN RENEWABLE INTERMITTENT ENERGY.

RIGHT. AND SO THAT HAS POSED SOME CHALLENGES FOR US, AND CERTAINLY SOME COSTS THAT ARE BEING BORNE BY RATEPAYERS FUTURE ORIENTED AS WELL. SO THEY MIGHT BE FUTURE TECHNOLOGY. I KNOW THERE'S YOU SOME OF YOU HAVE HEARD ABOUT THINGS LIKE SMALL MODULAR NUCLEAR REACTORS AND HYDROGEN, AND THERE'S A NUMBER OF OTHER THINGS THAT THAT COULD POSITION US INTO THE FUTURE FOR

[00:50:05]

THOSE. AND THEN COST EFFECTIVENESS. WHAT IS THE REGULATORY COMPLIANCE REQUIREMENT? THAT'S ONE OF THE THINGS THAT WE'LL TALK A LITTLE BIT ABOUT TODAY. I WILL TELL YOU THAT THINGS DIDN'T GO AS BAD IN THE LEGISLATURE AS WE HAD INITIALLY PROJECTED. AND THEN FINALLY THERE IS A STAKEHOLDER INVOLVEMENT. AND SO AUSTIN ENERGY, CPS ENERGY WENT THROUGH THAT. THEY HAD A LOT OF TOWN HALL MEETINGS WITH FOLKS TO COME IN AND TALK ABOUT THE VARIOUS DIFFERENT NEEDS OF THE UTILITY, EVERYTHING, ALL TYPES OF DIFFERENT GENERATION TO COME UP WITH THE RIGHT TYPE OF MIX FOR THOSE PARTICULAR COMMUNITIES. AND SO WE WOULD ANTICIPATE DOING SOMETHING VERY SIMILAR HERE. AND AT LEAST THAT IS THAT IS OUR RECOMMENDATION. SO LET ME TALK A LITTLE BIT ABOUT THE REGULATORY AND MARKET ENVIRONMENT. HERE'S THE GOOD NEWS. IN ALL OF THIS RIGHT. THERE HAVE BEEN NO FORCED OUTAGES SINCE WINTER STORM URI. WE'VE WE'VE GOTTEN CLOSE. WE'VE GOTTEN VERY CLOSE. YOU KNOW, I'VE WOKEN UP IN A IN A IN A COLD SWEAT SEVERAL TIMES, BEEN UP EARLY IN THE MORNING AND LATE IN THE AFTERNOON JUST WATCHING THOSE TWO LINES. RIGHT. AND SO, SO IT IS THE BEST I COULD CHARACTERIZE THIS AS I SAY HERE, IS JUST UNCERTAIN. THERE'S A LOT OF UNCERTAINTY IN THE MARKET. WINTER STORM URI, IF YOU RECALL, I'LL THROW OUT ONE OF THESE OTHER, YOU KNOW, TEN CENT WORDS SCARCITY CAP DURING WINTER STORM URI. THAT CAP WAS AT $9,000 A MEGAWATT HOUR. THAT COST US $200 MILLION. RIGHT. AND POWER THAT WE ENDED UP SERVING FOR OUR CUSTOMERS. AND I WILL TELL YOU, LISTEN, NOBODY DIED IN DENTON. IT WAS WELL WORTH THE COST.

RIGHT. AND SO WHAT I WILL TELL YOU THAT SCARCITY CAP TODAY HAS BEEN LOWERED TO $5,000, SO THAT $200 MILLION WOULD HAVE NOW COST US $100 MILLION. RIGHT? SUMMER OF 23, WE INCURRED $31 MILLION.

THAT WAS ON THE $5,000 SCARCITY. IF THAT HAD BEEN A 9000, WELL, YOU CAN DO THE MATH PRETTY QUICK. RIGHT? AND SO SOME GOOD THINGS HAVE HAPPENED IN SINCE WINTER STORM URI, I WILL TELL YOU THAT THERE ARE FOLKS OUT THERE, ESPECIALLY SOME OF YOUR PRIVATE GENERATORS, THAT NOT ONLY BELIEVE THAT THE SCARCITY CAP SHOULD BE BACK TO 9000, BUT THAT IT SHOULD BE COMPLETELY UNCAPPED, RIGHT. AND THAT THE MARKET SHOULD DICTATE AND BEAR WHAT THE MARKET CAN BEAR TO REALLY SEND THE SIGNALS THAT ARE NEEDED TO, TO, TO PUT ADDITIONAL STEEL ON THE GROUND. RIGHT. PUT ADDITIONAL GENERATION ON THE GROUND. A COUPLE OF OTHER THINGS THAT HAVE HAPPENED, AN ADDITIONAL NOW A FIFTH WHAT'S CALLED ANCILLARY SERVICE, THIS ERCOT CONTINGENCY RESERVE. WHAT THE INDEPENDENT MARKET MONITOR FOR ERCOT PREDICTS OR PREDICTED OR FORECASTED THAT THIS ADDED ABOUT 8 TO $10 BILLION OF ADDITIONAL COST TO THE MARKET. NOW THE DECK IS ELIGIBLE. AND SO THE DECK DOES SELL ANCILLARY SERVICES INTO THE MARKET. AND THAT IS ONE OF THE BENEFITS THAT THAT PARTICULAR FACILITY HAS. NOT ALL FACILITIES ARE ELIGIBLE. THERE IS ALSO ANOTHER IT'S NOT CALLED A NATIONAL SERVICE, BUT IT'S A FIRM FUEL SUPPLY SERVICE WHERE ERCOT GOES OUT THERE AND BUYS POWER FROM GENERATORS. AN ESTIMATE THERE IS ABOUT $51 MILLION. THE DECK DOES NOT HAVE A FIRM FUEL CONTRACT. IT IS A ON DEMAND CONTRACT FOR NATURAL GAS. WE ONLY USE GAS WHEN WE ACTUALLY RUN, AND SO THE DECK IS NOT ELIGIBLE FOR THAT PARTICULAR SERVICE. AND THEN THE OTHER THING THAT HAPPENED IN NOVEMBER 23RD IS THAT VOTERS ACROSS THE STATE, OVER 60% HERE IN DENTON, VOTED IN FAVOR OF WHAT'S CALLED THE TEXAS ENERGY FUND. SO THAT PARTICULAR FUND CALLS FOR ABOUT $7.2 BILLION OF STATE MONEY THAT COMES IN WAYS OF LOANS AND EARLY COMPLETION BONUSES TO BUILD UP TO 10,000MW OF ADDITIONAL DISPATCHABLE GENERATION. RIGHT. I WANT TO BE CLEAR THAT THAT DISPATCHABLE DOES NOT MEAN RENEWABLE. DISPATCHABLE ARE THINGS LIKE NATURAL GAS, THINGS LIKE NUCLEAR, ALTHOUGH THERE HAS NOT BEEN ANY MORE NUCLEAR IN THE STATE. YOU KNOW, THOSE ARE THE TYPES OF, OF GENERATIONS THAT THIS THESE PROGRAMS ARE TRYING TO INCENTIVIZE ONE $1 BILLION OUTSIDE OF ERCOT. REMEMBER, ERCOT DOESN'T ENCOMPASS THE ENTIRE STATE. AND IN $1.8 BILLION FOR BACKUP POWER PACKAGES, AND CERTAINLY WORKING WITH THE WATER DEPARTMENT AS AN EXAMPLE, TO LOOK AT THOSE FOR OUR FOR THEIR VARIOUS FACILITIES, PUMP STATIONS, THEIR TREATMENT FACILITIES AS A WAY TO UPGRADE AND PROVIDE ADDITIONAL BACKUP POWER FOR THOSE CRITICAL FACILITIES. THE NEXT ITEM IS JUST THE PROLIFERATION OF RENEWABLES, A LOT OF RENEWABLES, AS I'VE ALREADY MENTIONED, THAT ARE IN THE MARKET. WHAT THIS HAS DONE GOING NOW, YOU'VE YOU'VE SEEN THE PICTURE OF THE DUCK CURVE, RIGHT? DURING THE DURING THE SUMMER HOURS BETWEEN 6 AND

[00:55:01]

10, WHEN THE SUN GOES DOWN, IF THE WIND DOESN'T COME IN, THAT'S WHEN YOU START SEEING THOSE THOSE SPIKES. SPIKES. PRICE SPIKES. EXCUSE ME. MY MOUTH IS GETTING A LITTLE DRY. AND THEN IN THE WINTER, YOU HAVE BOTH THE EVENING HOURS AND THE MORNING HOURS AS WELL. SO IT'S A IT'S A DOUBLE WHAMMY FOR YOU AGAIN WHEN THE WHEN THE WIND STOPS BLOWING AND THE SUN DOESN'T COME UP, ALL OF A SUDDEN YOU SEE ABOUT THREE HOURS WORTH OF PRICE INCREASES, WHICH IS REALLY ON THESE SCARCITY PERIODS IN, IN A NUMBER OF OTHER REGULATIONS. I WILL TELL YOU, I WILL POINT OUT THE BIG ONE HERE, WHICH IS THE FIRM FUEL FIRMING OF RENEWABLES, IS THAT WAS ONE THAT WE WERE VERY CONCERNED ABOUT THAT WOULD HAVE IMPACTED OUR OUR PPAS, THAT WOULD HAVE MANDATED THAT ALL RENEWABLE RESOURCES HAVE SOME TYPE OF DISPATCHABLE GENERATION TO BACK IT. I CAN TELL YOU THAT THOSE BILLS DID NOT PASS, BUT THERE IS A BILL THAT WAS PASSED IN IN THE 88TH LEGISLATURE, HB 1500, THAT STILL IS GOING TO REQUIRE FIRMING RENEWABLES, BUT THAT'S FOR ANY NEW RENEWABLES AFTER 2027. SO AGAIN, SO AS WE AS WE LOOK FORWARD IN THE FUTURE AND TO ENTER INTO THOSE CONTRACTS, THOSE RENEWABLES, WHILE THEY MAY BE THERE, CERTAINLY THOSE COSTS TO ADD ADDITIONAL FIRMING WILL BE ADDED INTO THE PRICE. AND SO CURRENTLY WE'RE SEEING FOLKS TALKING ABOUT SOMEWHERE IN THE RANGE OF 7 TO $0.10 OF ADDITIONAL COST. THAT'S GOING TO BE ADDED TO THE PRICES THAT WE'RE SEEING IN THE MARKET TODAY. AND THEN THE LAST ONE THAT I'LL THAT I'LL MENTION, WHICH WAS ANOTHER ONE THAT WAS A BIG CONCERN, WAS THE DISPATCHABLE GENERATION CREDITS.

THAT WHICH WAS SB 388. THAT ONE ALSO DID NOT PASS. THAT ONE WOULD HAVE MANDATED THAT DME AND ALL OTHER LOAD SERVING ENTITIES BACK UP A CERTAIN PERCENTAGE OF THEIR LOAD WITH DISPATCHABLE GENERATION. AND SO THOSE WOULD HAVE BEEN THINGS THAT WOULD HAVE BEEN MANDATED. AND SO FOR DME TO CONTINUE TO OPERATE AND ANY OTHER LOAD SERVING ENTITY THAT WOULD HAVE BEEN A STATUTORY REQUIREMENT, I COULD TELL YOU TODAY THAT THAT DID NOT PASS. NOW THERE IS A PERFORMANCE CREDIT MECHANISM THAT WOULD LIKELY DO THE SAME THING THAT WAS SHELVED BY THE PUC BECAUSE OF THE LEGISLATIVE SESSION. NOW THAT THE LEGISLATIVE LEGISLATURE DID NOT APPROVE THE DISPATCHABLE GENERATION CREDITS, THE PCMS MIGHT VERY WELL BE BACK ON THE TABLE. SO WE'LL BE MONITORING ALL THOSE AGAIN AT THAT POINT. IF DME IS MANDATED TO BACK UP ITS LOAD WITH DISPATCHABLE GENERATION, THEN WE WILL LIKELY ONLY HAVE THREE OPTIONS ONE, YOU BUILD MORE DISPATCHABLE GENERATION, TWO YOU CONTRACT FOR IT, OR THREE, YOU BUY PERFORMANCE CREDITS FROM THOSE SAME GENERATORS. RIGHT. AND SO AGAIN, A LOT STILL TO BE DEVELOPED. BUT AGAIN THAT'S THE CONTEXT OF WHERE THE REGULATORY AND THE MARKET ENVIRONMENT IS. AND SO LET'S TALK A LITTLE BIT ABOUT OUR LOAD. SO CURRENTLY OUR PEAK LOAD IS ABOUT 408MW. THAT WAS ACTUALLY IN THE SUMMER OF 23. OUR LOAD HAS ACTUALLY BEEN BEEN DOWN RECENTLY BECAUSE OF THE COOL WEATHER. IT'S BEEN REALLY, REALLY NICE. BUT SO 408MW IS WE HAVE TODAY. SO AGAIN, GOING BACK TO THE DISPATCHABLE REQUIREMENT, CURRENTLY WE HAVE 225MW OF DISPATCHABLE GENERATION. SO WE WOULD BE SHORT. WE'RE SHORT 183MW OF DISPATCHABLE GENERATION BASED ON OUR EXISTING PEAK PEAK LOAD. WE WOULD ANTICIPATE THAT BY 2033, THAT PEAK LOAD WOULD GROW, WOULD GROW TO ABOUT 600MW, INCREASING THAT SHORTAGE TO ABOUT 386. AND THEN BY 2044, WE WOULD ANTICIPATE THAT THAT WOULD BE AT ABOUT 900MW. SO ABOUT 675MW SHORT. AND JUST FOR SOME CONTEXT, CITY OF AUSTIN OR AUSTIN ENERGY, THEIR PEAK LOAD IS ABOUT 2700MW FOR SAN ANTONIO, WHICH IS THE LARGEST MOU IN THE COUNTRY. THEIR PEAK LOAD IS CLOSE TO 6000MW. SO CERTAINLY MUCH, MUCH LARGER THAN WE ARE.

BUT AGAIN, THEY ALSO ARE FACING THESE SIMILAR TYPES OF SHORTAGES. AND THIS FORECAST DOES NOT INCLUDE ANY ADDITIONAL DATA CENTER OR LARGE LOAD DEVELOPMENT. AND I CAN TELL YOU WHILE WHILE THE INTEREST THAT WE'RE SEEING AT DME FOR THOSE LARGE LOADS HAS TEMPERED A LITTLE BIT, I THINK A LOT OF IT HAD TO DO WITH THE LEGISLATURE BEING IN SESSION. WE WOULD ANTICIPATE THAT THEY WOULD BE BACK IN THE MARKET PRETTY QUICK. AND SO AS WE START HAVING CONVERSATIONS WITH THOSE, WE'LL CERTAINLY KEEP YOU APPRIZED OF ANY OF THOSE PARTICULAR DEVELOPMENTS. AND THE STAFF RECOMMENDATION HERE FOR PART TWO IS TO CREATE A LONG TERM INTEGRATED RESOURCE PLAN, PREFERABLY FOR ABOUT 20 YEARS. GO THROUGH THE VARIOUS PROCESSES THAT WE'VE IDENTIFIED HERE. WE WOULD ANTICIPATE THAT THAT WOULD TAKE US ABOUT 18 TO 24 MONTHS.

YES. AND WE WOULD HIRE AN EXTERNAL FIRM TO KIND OF HELP US GO THROUGH THAT PROCESS. SOMEONE

[01:00:01]

THAT'S FAMILIAR WITH, WITH DEVELOPMENT OF THESE PLANS. AND THEN FINALLY, LET ME JUST GIVE YOU THE RECAP HERE. WE DID PRESENT THIS TO THE PUB ON MAY 19TH. THEY GAVE US UNANIMOUS DIRECTION TO PROCEED WITH BOTH RECOMMENDATIONS. THE ONE CAVEAT THAT THEY DID ASK, OR THEY DO RECOMMEND TO THE COUNCIL IS THAT IN THE DEVELOPMENT OF THE CITY POLICY, THAT THERE BE SOME TYPE OF PUBLIC COMPONENT FOR THE PUBLIC, AN OPPORTUNITY TO PROVIDE YOU FEEDBACK ON THAT PARTICULAR POLICY? AND AGAIN, JUST TO RECAP THE RECOMMENDATIONS HERE IS WE'RE RECOMMENDING THAT WE CREATE A RENEWABLE RESOURCE, RENEWABLE ENERGY POLICY. WE WOULD ANTICIPATE THAT IT WOULD TAKE US 6 TO 9 MONTHS AND IN THE CREATION OF A LONG TERM INTEGRATED RESOURCE PLAN, AND THAT WOULD TAKE ABOUT 18 TO 24 MONTHS. SO WITH THAT, THAT CONCLUDES MY PRESENTATION. HAPPY TO ANSWER ANY QUESTIONS ON ANY OF THAT OR PART TWO HERE AT YOUR

PLEASURE. >> QUESTIONS FOR STAFF REPRESENTATIVE FROM DISTRICT

THREE. >> THANK YOU. >> WELL, FIRST, YOU KNOW, SUPPORTIVE CLEARLY OF ENGAGING THE COMMUNITY. AND THERE'S SO MANY MOVING PARTS NOW IN THE, YOU KNOW, THE LANDSCAPE OF POTENTIAL FUTURE ENERGY SOURCES. AND IT SEEMS LIKE ABOUT EVERY, I DON'T KNOW, TEN YEAR CYCLE. THERE'S LIKE A BIG ENERGY THING THE COMMUNITY NEEDS TO TALK ABOUT, JUST A KIND OF A DETAILED POINT WHEN YOU'RE TALKING ABOUT WHAT OPTIONS WOULD WE WOULD BE LIMITED TO IF THE LEGISLATURE HAD MANDATED FIRMING, WOULD BATTERY FALL ON THAT LIST AS ONE

OF THE TYPES OF RESOURCES? >> NO, SIR. THEY WERE NOT CONSIDERING BATTERY AS A

DISPATCHABLE RESOURCE. >> OKAY. IMPORTANT TO KNOW. THANKS.

>> ANY OTHER QUESTIONS? REPRESENTATIVE FOR DISTRICT TWO. >> DO WE HAVE? OBVIOUSLY I ALSO SUPPORT THE COMMUNITY ENGAGEMENT COMPONENT. DO WE HAVE AN IDEA OF FOR THE TWO ITEMS OR IN BETWEEN THE TWO ITEMS? CAN YOU GIVE US A LITTLE FEEL FOR WHERE YOU SEE THAT COMMUNITY COMPONENT

ENGAGING IN THIS PROCESS? >> YEAH, I MEAN, I THINK CERTAINLY, YOU KNOW, SCHEDULING MEETINGS OUT IN NEIGHBORHOODS, LIBRARIES, WE WILL LOOK FOR PUBLIC SPACES TO BE ABLE TO, TO HAVE THOSE TYPES OF TOWN HALL TYPE OF SITUATIONS. AND AGAIN, I THINK MY INTEREST WOULD BE TO HIRE AN EXPERT THAT HAS DONE THAT BEFORE, UNDERSTANDS HOW TO MODERATE THAT, TO BE ABLE TO GET TO MAKE IT AN EFFECTIVE PROCESS SO THAT WHEN WE COME BACK TO YOU, WE CAN GET YOU SOME GOOD COMMUNITY FEEDBACK ON ON EVERYTHING THAT'S THAT'S INCLUDED WITHIN THAT, THAT PLAN.

>> YOU KNOW, I SUPPORT ALL THAT. I, I PROBABLY MISSPOKE OR WASN'T CLEAR. I JUST MEANT, ARE YOU ANTICIPATING THAT COMMUNITY ENGAGEMENT WOULD BE IN THE 6 TO 9 MONTHS TIME FRAME, OR OVER THE 18 TO 24 MONTHS TIME FRAME, OR A LITTLE BIT IN BOTH? WHERE DO YOU SEE IT HAPPENING?

>> SO, SO MY HOPE WOULD BE THAT WE WOULD BE IN FRONT OF YOU HERE REALLY QUICK 6 TO 9 MONTHS ON THE ON THE CITY POLICY. CERTAINLY IF THE COUNCIL IS INTERESTED IN HOLDING SOME TYPE OF PUBLIC HEARING OR HOWEVER YOU WOULD WANT TO DO THAT, I THINK WOULD WOULD PROBABLY BECAUSE IT'S SO, SO TARGETED AND IT'S PROBABLY MORE FOCUSED, PROBABLY SOME TYPE OF PUBLIC HEARING OR MAYBE EVEN INDIVIDUAL CONSIDERATION AND GIVE, GIVE, GIVE THE PUBLIC THE OPPORTUNITY TO PROVIDE YOU FEEDBACK ON THE ON THE ACTUAL INTEGRATED RESOURCE PLAN. THAT'S A MUCH LARGER TYPE OF ENDEAVOR. I KIND OF EQUATE IT TO KIND OF WHAT SCOTT AND HIS FOLKS DID, AND WITH THE DEVELOPMENT PROCESS RIGHT ON THE DEVELOPMENT PLAN, SOMETHING VERY SIMILAR TO THAT, WHICH IS KIND OF WHAT WE SAW THAT CPS ENERGY AND AUSTIN ENERGY DID.

>> OKAY. SO WHAT WHAT I HEAR YOU SAYING IS SORT OF SOME COMMUNITY ENGAGEMENT DURING THE 6 TO 9 MONTHS. AND IF WE TAKE THEIR THEIR EXAMPLE, ADDITIONAL COMMUNITY ENGAGEMENT OVER THE 18

TO 24 MONTHS. OKAY. THANK YOU. YES, SIR. >> ANY OTHER QUESTIONS FOR STAFF

REPRESENTATIVE FROM DISTRICT FOUR? >> SO IS THE STAFF. PARDON ME, IS THE STAFF RECOMMENDATION THE CREATION OF THE CITY RENEWABLE ENERGY POLICY AND THE CREATION

OF LONG TERM? IT'S TWO RECOMMENDATIONS. >> YES, SIR. AND WE CERTAINLY SEE THEM AS TWO SEPARATE THINGS. RIGHT. AND SO YOU CAN BE 100% RENEWABLE WITHOUT HAVING ALL WIND AND SOLAR GENERATION ONLY. AND SO THE INTEGRATED RESOURCE PLAN IS REALLY GOING TO BE WHAT'S GOING TO LOOK AT WHAT IS THAT RIGHT. DIVERSIFIED MIX OF GENERATION. RIGHT. THAT THE CITY NEEDS TO HAVE TO BE ABLE TO NOT ONLY MEET THE POWER NEEDS OF OUR, OF OUR CUSTOMERS, BUT ALSO TO ADDRESS THE PRICE THAT WE'RE CHARGING TO OUR CUSTOMERS. RIGHT. AND SO, AGAIN, AS YOU KNOW, WE DID A 25% RATE INCREASE BACK IN APRIL AND IN AUGUST, I'VE HEARD MORE ABOUT THOSE RATE INCREASES THAN I'VE HEARD ABOUT HOW MUCH WIND AND SOLAR GENERATION DO YOU HAVE. RIGHT.

AND SO I THINK THAT THE INTEGRATED RESOURCE PLAN WILL LOOK AT WHAT IS THE RIGHT MIX

[01:05:03]

AND WHAT IS THE APPETITE AND THE RECOMMENDATIONS FROM THE COMMUNITY RIGHT TO BOTH ADDRESS THE RELIABILITY AND AFFORDABILITY OF POWER IN THE CITY.

>> OKAY. I WOULD SUPPORT THE TWO STAFF RECOMMENDATIONS. THANK YOU.

>> ANYONE ELSE? REPRESENTATIVE DISTRICT 4 OR 5? PARDON ME FOR JUST ONE.

>> I AGREE, I SUPPORT BOTH OF THEM AS WELL, ALTHOUGH I WILL AND I WILL JUST ADD THIS. I APPRECIATE YOU SAYING THAT THE PUBLIC FEEDBACK YOU GET IS MORE ABOUT THE PRICE VERSUS RENEWABLE. BUT AS COUNCIL MEMBERS, OUR JOB IS TO THINK ABOUT MORE THAN PARTICULARLY JUST WHAT IS MIGHT BE TOP OF MIND. RENEWABLE IS STILL IMPORTANT TO THE CITY, THEREFORE

IT'S STILL GOT TO BE IMPORTANT TO THIS COUNCIL. SO THANK YOU. >> ANYONE ELSE? I'M SUPPORTIVE OF BOTH. SO THAT'S THAT'S A MAJORITY. SO THANK YOU VERY MUCH. APPRECIATE IT. THAT TAKES

[B. Receive a report, hold a discussion, and give staff direction regarding an update to the Special Event Schedule of Fees for City Departments. (Community Partnership Committee approved the recommendation). [Estimated Presentation/Discussion Time: 60 minutes]]

US TO ITEM B. ID 25766 RECEIVE REPORT WHOLE DISCUSSION. GIVE STAFF DIRECTION REGARDING AN UPDATE TO THE SPECIAL EVENT SCHEDULE OF FEES FOR THE CITY DEPARTMENTS.

>> GOOD AFTERNOON MAYOR AND COUNCIL I'M CHRISTINE TAYLOR. TERRENCE JONES IS GOING TO BE PRESENTING. I'M JUST KICKING OFF THE PRESENTATION. SO FOR THE PAST FEW YEARS, CITY MANAGER SARAH HENSLEY HAS CHALLENGED US AS STAFF TO CONTINUALLY EVALUATE PROGRAMS AND PROCESSES. WE STARTED IN 2022 ON MAKING INCREMENTAL CHANGES TO THE SPECIAL EVENT PROCESS. TERENCE WILL DETAIL MANY OF THESE IN HIS PRESENTATION, AND THE CITY MANAGER RECENTLY HIGHLIGHTED TO YOU ALL DURING HER MID-YEAR REVIEW THAT THIS SPECIAL EVENT PROCESS IS A PRIORITY, PRIORITY FOCUS AREA FOR HER. THIS FOCUS STEMS PRIMARILY FROM THE COMMUNITY'S POSITIVE RESPONSE AND THE SIGNIFICANT ECONOMIC IMPACTS THAT WE WERE ABLE TO RECOGNIZE FROM THE ARTS AND CULTURE EVENTS LAST OCTOBER. RECOGNIZING THAT THE IMPORTANCE OF OUR SPONSORED EVENTS, COUPLED WITH THE NEED TO MAINTAIN FINANCIAL STABILITY, IT'S IMPORTANT AS AN ORGANIZATION THAT WE HAVE EFFICIENT PROCEDURES AND HOW WE EVALUATE SPECIAL EVENTS, HOW WE ALLOCATE FUNDING AND HOW WE STAFF EVENTS. SO A VERY LARGE CROSS-FUNCTIONAL TEAM HAS WORKED ON THIS PROJECT.

IT'S PARKS. EVERYONE IS SITTING IN THE GALLERY. WE HAVE PARKS, POLICE, FINANCE, EMERGENCY MANAGEMENT, FIRE. THEY'VE ALL WORKED WITH OUR COMMUNITY PARTNERSHIP COMMITTEE. I WILL SAY THAT COMMITTEE HAS PROBABLY TRIPLED THE MEETINGS IN THE LAST YEAR FOR ALL THE MEETINGS WE SCHEDULED WITH THEM TO PROVIDE INFORMATION, GET FEEDBACK AND REALLY IMPROVE THESE PROCESSES.

SO WITH THAT, WE WANTED TO JUST RECOGNIZE THE WORK THAT'S BEEN DONE ON THIS. AND I'LL TURN IT OVER TO TERENCE FOR A GREAT PRESENTATION AND LOOKING FORWARD TO THE CONVERSATION.

>> THANK YOU CHRISTINE. GOOD AFTERNOON. MAYOR AND COUNCIL. TERENCE JONES, GRANTS PROGRAM MANAGER IN FINANCE OVER THE GRANTS MANAGEMENT OFFICE. SO AS CHRISTINE MENTIONED, EACH YEAR FINANCE WORKS WITH POLICE, FIRE SEVERAL DIFFERENT DEPARTMENTS TO DISCUSS OUR OVERALL PROGRAM WHEN IT COMES TO OUR HOT FUNDS, OUR IN-KIND SERVICES AND OUR SPONSORSHIP, WE WORK CLOSELY WITH OUR COMMUNITY PARTNERSHIP. WHEN WE MAKE THESE DECISIONS ON OUR SPECIAL EVENTS THAT ARE HELD THROUGHOUT THE CITY OF DENTON CITY LIMITS EACH YEAR. SO TODAY I'LL DISCUSS THAT. I'LL DISCUSS OUR OVERALL FUNDING LEVELS WHEN WE TALK ABOUT OUR SPECIAL EVENTS, HOW WE FUND THEM, WHAT CHANGES WE HAVE MADE AND WHERE WE'RE GOING MOVING FORWARD. SO OVERALL, JUST A LITTLE BACKGROUND, AS YOU SEE IN 2024, WE HAVE HAD AN INCREASE OF SPECIAL EVENT PERMITS, WHICH IS RAN THROUGH OUR PARKS DEPARTMENT, 89 SPECIAL EVENT PERMITS, WHICH IS 170% INCREASE SINCE 2021. AND I WANT EVERYONE TO THINK ABOUT THIS WHEN WE'RE TALKING ABOUT OUR OVERALL GOALS FOR THIS IS 100% COST RECOVERY. THAT'S WHAT WE'RE LOOKING AT THE MAIN GOAL. SO WHEN WE MAKE THESE DECISIONS, WE'RE ALSO LOOKING AT HOW WE CAN IMPROVE INTERNALLY, LOOKING AT THE DATA THAT WE HAVE FROM OUR APPLICANTS WHEN THEY'RE ACTUALLY APPLYING FOR OUR FUNDS. WE'VE ALSO MADE UPDATES TO OUR SPONSORSHIP APPLICATION TO CAPTURE THOSE DIFFERENT ITEMS, TO MAKE SURE THAT WE'RE MAKING MINDFUL DECISIONS WITH OUR FUNDING OVERALL, AND MENTIONING THAT WE'VE ESTABLISHED STANDARDIZED PARADE ROUTES, WHICH WILL ALSO HELP WITH OUR OVERALL SAFETY COSTS. WHEN WE HAVE THESE EVENTS AND WE HAVE A STANDARD PARADE ROUTE, WHICH CAN ALSO HELP US DECREASE THE LEVEL OF SAFETY THAT WE HAVE TO HAVE ON SITE. SO CITY SERVICES FOR SPECIAL EVENTS, AS WE MENTIONED, WE HAVE POLICE, FIRE, PARK PERSONNEL AND FACILITY RENTALS, SOLID WASTE AND DME SERVICES.

OUR OVERALL IN-KIND AMOUNT CURRENTLY IS 400,000. THAT AMOUNT IS COMING DIRECTLY OUT OF

[01:10:05]

OUR CURRENT GENERAL FUND, AND THAT AMOUNT HAS BEEN INCREASED SINCE 2022. WE'VE IDENTIFIED IDENTIFIED SOME CONCERNS OVERALL. WHEN WE LOOKED AT OUR FY 2324 BUDGET YEAR, WE REALIZED THAT WE HAD UNREIMBURSED COSTS FOR SPECIAL EVENT OVERTIME. WE ALSO REALIZED THAT OUR ACTUAL RATE FOR OUR HOURLY REIMBURSEMENT WAS UNDER THE AMOUNT THAT WE SHOULD ACTUALLY BE CHARGING TO RECOVER 100% COST FOR SERVICES. AND THEN WE ALSO STAFFED OUR EVENTS AT A VERY HIGH LEVEL. SO EACH EVENT THAT WE HAVE DOESN'T HAVE TO BE STAFFED AT THE SAME LEVEL. YOU MAY HAVE AN EVENT THAT IS MORE OF A RISK OF YOU HAVE ALCOHOL PRESENT VERSUS AN EVENT THAT DOES NOT HAVE ALCOHOL PRESENT. SO WE WANT TO LOOK AT THOSE DIFFERENT THINGS WHEN WE'RE STAFFING OUR SPECIAL EVENTS OVERALL. AND SO ACTIONS TAKEN TO DATE AS I MENTIONED. SO SINCE 2022 WE'VE MADE SOME CHANGES. RIGHT. SO WE STARTED WITH AN IN-KIND AMOUNT OF 250,000. WE ALSO STARTED WITH THE REQUIRED 50% PARK FACILITIES FEE. AND THEN WE IMPLEMENTED DEDICATED SPECIAL EVENTS STAFF. SINCE THEN 2023, WE'VE INCREASED OUR OVERALL IN-KIND AMOUNT TO 400,000. WE ALSO HAVE A TRACKING TOOL TO ACTUALLY VERIFY THE AMOUNT OF ATTENDANCE AT THESE SPECIAL EVENTS. AND WE ALSO UPDATED OUR OVERALL PROCESS AND HOW WE INTAKE APPLICATIONS THIS YEAR. SO 2025 WE IMPLEMENTED SOME NEW THINGS. AND THEN WE ALSO MODIFIED THE APPLICATION TO CAPTURE CRITICAL DECISION MAKING. SO WHEN WE TALK ABOUT DECISION MAKING WHAT OTHER RESOURCES ARE OUR SPECIAL EVENT ORGANIZERS GOING AFTER VERSUS JUST CITY FUNDING? WHAT IS THE ATTENDANCE LEVELS, ETC? SO JUST TO TALK ABOUT THE FEE RATES, WE'LL START WITH POLICE. OUR CURRENT RATE FOR POLICE, A REGULAR POLICE OFFICER IS $65 AN HOUR. FOR A SERGEANT OR SUPERVISOR, IT'S $80 AN HOUR FOR A LIEUTENANT OR COMMANDER. WE'RE AT $95 AN HOUR. WE'RE PROPOSING TO INCREASE THOSE FEES TO 85, 100 AND 115, WHICH ALLOWS US TO HAVE FULL COST RECOVERY AT THESE EVENTS, WHICH IS ALSO ONE AND A HALF TIMES THE RATE OF AN ACTUAL HOURLY EMPLOYEE IN POLICE. WE ALSO HAVE UPDATED OUR FIRE AND EMS RATES. CURRENTLY, WE DO NOT HAVE ANY RATES FOR ANYONE UNDER A PROGRAM MANAGER, AND WE SHOULD INCLUDE THOSE RATES BASED ON THE FACT THAT ALL EMS TYPE OF REGISTRATIONS FOR EVENTS NEED AN ACTUAL DRIVER, A PARAMEDIC THAT IS PARAMEDIC CERTIFIED AND AN ADDITIONAL STAFF MEMBER. SO THAT COULD BE ANYONE ON THIS LIST, WHICH IS WHY WE INCLUDE THE ADDITIONAL RATES FOR FIRE. WE ALSO HAVE CREATED A FEE SCHEDULE UPDATE FOR OUR SPECIAL EVENT PERMITTING FEES. SO WE HAVE A TIERED APPROACH BASED ON THE POPULATION AND ESTIMATION OF THE EVENT. SO TIER ONE YOU HAVE A LOWER CURRENT RATE AND THEN IT GOES TO TIER FIVE WHICH IS AN ACTUAL INCREASE BASED ON THE POPULATION. SO WE WANT TO FUND THAT AT A PROPOSED 10% RECOVERY RATE. AND THAT'S BASED ON PARKS ALREADY HAVING GENERAL FUND ALLOCATIONS FOR SPECIAL EVENTS.

AND SO HERE'S AN EXAMPLE OF OUR CURRENT MOST POPULAR EVENTS THAT WE HAVE ACROSS THE CITY AT OUR CURRENT RATE. AND THEN WE ALSO HAVE OUR PROPOSED RATE. AND THEN YOU CAN ALSO SEE THE INCREASE IN DIFFERENCE IF WE ACTUALLY INCREASE THE RATES TO OUR PROPOSED RATES. SO FOR EXAMPLE, DENTON ARTS AND JAZZ FESTIVAL, THE CURRENT OVERALL RATE, INCLUDING ALL FEES, IS $238,454.

THAT WOULD INCREASE TO $282,928, WHICH IS AN INCREASE FOR THE ORGANIZER OF $44,474. SO THE DIRECTION THAT WE NEED STAFF RECOMMENDS THE PROPOSED RATES FOR 24 FY 2425 PARTNERSHIP COMMITTEE PROVIDED DIRECTION TO MOVE FORWARD WITH THE RATE RECOMMENDATIONS AS SPECIAL SPECIAL CALLED MEETING ON MAY 2ND, AND WE RECOMMENDED THAT WE CITY CITY COUNCIL BUDGET CONSIDERS GOING SORRY CITY COUNCIL BUDGET. CONSIDERATION OF THESE RATES GO INTO EFFECT OCTOBER 1ST. AFTER VOTING ON IT IN SEPTEMBER AND UTILIZING THE NEW PROCESS AND PROPOSED PROPOSED FEES IN FY 2526. AND I'LL OPEN IT UP FOR ANY QUESTIONS.

>> THANK YOU VERY MUCH. QUESTIONS FOR STAFF REPRESENTATIVE FROM DISTRICT

FOUR. >> THANK YOU. THIS IS VERY INTERESTING. I'M I'M INTERESTED IN THE STANDARD PARADE ROUTE. WHAT WHAT CAN YOU JUST SPEAK TO THAT.

>> SURE. SO THE ROUTES WERE CREATED BY POLICE TO DECREASE THE FORCE THAT THEY NEED ON SITE

[01:15:03]

FOR A SPECIAL EVENT. SO IF WE HAVE AN AREA THAT REQUIRES LESS POLICE OR LESS FORCE TO BE WITHIN THAT AREA, IT ALLOWS US TO CHARGE THE EVENT HOLDER A LESSER FEE.

>> OKAY. AND CAN YOU DESCRIBE THE ROUTE? >> I WOULD NEED POLICE TO

DESCRIBE THE ROUTE. IS ANYONE HERE THAT. OKAY? >> SOMEBODY. YEAH. CHRISTINE.

>> I'LL HOP IN AND HELP THAT. SO HISTORICALLY FOR SPECIAL EVENTS, IF YOU'RE PLANNING AN EVENT, THE EVENT ORGANIZER HAS BEEN ABLE TO SAY, I'D LIKE THE PARADE TO GO DOWN THIS STREET THIS TIME FRAME. SO THE GOAL IS, WHEN LOOKING AT OUR PROCESS, THAT WE HAVE ALREADY THREE OPTIONS FOR THEM. SO MEANING THE TRAFFIC CONTROL PLAN IS DONE, WE KNOW HOW TO STAFF IT. WE KNOW WHAT THE ROUTE WILL LOOK LIKE. SO OFFERING THOSE A STANDARDIZATION, ALL THREE ROUTES WE CAN FOLLOW UP AND PROVIDE A COPY GO IN THE DOWNTOWN AREA. SO WE HAVE ONE THAT STARTS AT DEVELOPMENT SERVICES. EACH OF THEM HAVE A ROUTE THAT FOLLOWS ALONG THE SQUARE PROPER, AND WE HAVE DEVELOPMENT SERVICES AS A STARTING POINT. WE HAVE CIVIC CENTER. SO THERE'S THREE OPTIONS THAT EVENT ORGANIZERS CAN SELECT FROM. AND THE GOAL IS IT'S TWOFOLD THAT IT WOULD IMPROVE OUR PROCESSING TIME, OUR EVALUATION TIME, BECAUSE WE KNOW WHAT IT TAKES TO STAFF IT. AT THE SAME TIME, WE HAVE A STANDARDIZED TRAFFIC CONTROL PLAN, WHICH IS AN EXPENSE TO THE EVENT ORGANIZER. WHEN THE PARADE ROUTES ARE DETERMINED FOR EACH EVENT. SO WE POTENTIALLY SEE TWO TWO SAVINGS FOR THE EVENT ORGANIZER AND FOR STAFF.

>> OKAY. SO IT'S NOT A STANDARD PARADE ROUTE. IT'S THREE STANDARD PARADE ROUTES.

>> YES, WE BROUGHT THESE FORWARD TO COMMUNITY PARTNERSHIP. AND RECOGNIZING THAT CHANGE IS HARD AND THIS WAS GOING TO BE DIFFICULT. SO WE'VE GOT THREE. WE TALKED ABOUT GOING TO ONE GOING TO TWO. AND THE RECOMMENDATION WAS LET'S START WITH THREE. SEE HOW THEY WORK FOR THE EVENT ORGANIZERS PROVIDE THAT FEEDBACK AND GO FROM THERE. BUT MOVING TO THE STANDARDIZED ROUTES IS SIGNIFICANTLY GOING TO INCREASE ON THE REVIEW SIDE. AND HELP EXPENSES ON THE ORGANIZER

SIDE. >> IN MY MIND, I WAS SPECIFICALLY THINKING OF THE NORTH TEXAS RODEO PARADE THAT WE'VE TALKED ABOUT. YOU AND I HAVE TALKED ABOUT VERSUS THE

PETERBILT PARADE. RIGHT. SIMILAR BUT NOT THE SAME. >> SIMILAR, BUT NOT THE SAME.

AND AS WE IMPLEMENTED THESE STANDARDIZED ROUTES, WE WORKED WE WORKED CLOSELY WITH THE NORTH TEXAS FAIR AND RODEO. THEY HAVE HORSES. AND SO THERE HAS TO BE CONSIDERATION OF WHERE THEIR TRAILERS WILL BE, WHERE THE PARADE WILL START AND STOP. THEIR PRIOR ROUTE WAS VERY LONG, I THINK ABOUT FOUR MILES AND INCLUDED CROSSING WITH HORSES DOWN CARROLL BOULEVARD. SEVERAL TRAFFIC CONTROL IMPLICATIONS OF SHUTTING DOWN ROADS. SO WE WORKED WITH THEM TO LOOK AT THESE ROUTES AND MAKE SURE, LET'S GET EVERYTHING OFF CARROLL BOULEVARD. LET'S STANDARDIZE DOWN TO LOCUST AND ELM, AND THEY'RE HAPPY WITH THE SOLUTION THAT WE HAVE RIGHT NOW. SAME THING WITH PETERBILT. IT WILL BE A MODIFICATION, BUT IT STILL WILL INCLUDE THE SQUARE PROPER.

>> OKAY. GOOD. GOOD. THANK YOU. CAN. >> CHRISTINE.

>> WELL, I WAS GOING TO TALK TO TERENCE, BUT BUT I'M HAPPY TO TALK TO YOU. CAN YOU DESCRIBE

THE TRACKING TOOL USED FOR CALCULATING CROWD SIZE. >> YEAH. PREVIOUSLY. SO TECHNOLOGY AS TECHNOLOGY ADVANCES WE'VE THE CITY HAS ACQUIRED A DATA ANALYTICS TOOL THAT LOOKS AT CELL PHONE DATA. JUST CAPTURING DATA, AGGREGATE DATA IN A LOCATION FOR A TIME PERIOD PRIOR WHEN APPLICATIONS WERE MADE, IT WAS UP TO THE EVENT ORGANIZER TO ESTIMATE THEIR ATTENDANCE, SO WE HAD NO REAL WAY TO TRACK IT. THERE ARE A COUPLE EVENTS THAT HAVE IMPROVED THE PROCESS, LIKE THIN LINE FILM FESTIVAL. IT'S A FREE EVENT, BUT THEY REQUIRE A REGISTRATION SO THAT THEY KNOW HOW MANY ATTENDEES THEY HAVE. THEY ISSUE BRACELETS, SO IT WAS UP TO THE EVENT ORGANIZER AND IT DEPENDED ON WHAT TOOLS THEY HAD AVAILABLE. SO MOSTLY WE WERE SEEING THAT CROWD CROWD CALCULATIONS WERE JUST BASED OFF OF SCANNING OR TRYING TO COUNT AND ESTIMATE THEIR ATTENDANCE, WHERE WE'RE ABLE TO NOW ACTUALLY TRACK CELL PHONE DATA AND SHOW THAT WE CAN SHOW 30,000 PEOPLE WERE HERE ON SATURDAY, THE HIGHEST PEAK HOUR, AND CONCENTRATE THOSE AREAS. SO WE'VE BEEN ABLE TO IMPROVE THAT DATA ANALYTIC ON ACTUALLY

KNOWING ATTENDANCE. >> I HAD ASSUMED YOU WERE GOING TO SAY IT HAD SATELLITE

TECHNOLOGY, NO. >> CELL PHONE DATA. OKAY. AND IT'S AN OPT IN. I MEAN, IT'S NOT 100% ACCURATE, BUT IT. GIVES US BETTER THAN TRYING TO ESTIMATE HOW MANY PEOPLE ARE ATTENDING

EVENTS. >> LASTLY, THE FEE FOR POLICE, DOES THAT INCLUDE EQUIPMENT

MEANING MEANING SQUAD CARS. >> THERE IS AN ADDITIONAL FEE. AND THAT FEE SCHEDULE IF THEY NEED A VEHICLE. THAT HOURLY RATE IS JUST ACCOUNTING FOR THEIR STAFF TIME.

[01:20:02]

>> SO ONE COULD HAVE A POLICE OFFICER AND NOT HAVE THE POLICE VEHICLE, CORRECT?

>> YEAH. THEY'RE GOING TO EVALUATE THE EVENT ON WHAT'S GOING ON AND IF THAT'S NEEDED.

>> I SEE OKAY OKAY. THANK YOU SO MUCH. THANKS, MAYOR. >> ANY OTHER QUESTIONS.

REPRESENTATIVE FROM DISTRICT TWO THEN THREE. >> THANK YOU I APPRECIATE THAT.

I THINK I IN GENERAL, WHEN I, WHEN WE LOOKED AT THE FEES AND THE, THE TRYING TO IMPROVE TO GET TO COST RECOVERY. GENERALLY, IT WAS SOMEWHERE BETWEEN, YOU KNOW, ROUGHLY AROUND 20% INCREASE IN FEES FOR THIS, THIS EMS OR THIS FIREFIGHTER OR THAT. AND WITH THE EXPLANATION THAT, WELL, THIS IS THIS IS MORE OF A REAL WORLD COST. AND SO I TAKE THAT. BUT I THOUGHT I HEARD PLEASE CORRECT MY MAYBE I MISHEARD THAT. THAT GETS US TO 100% COST RECOVERY FOR THOSE

POSITIONS. >> FOR PUBLIC SAFETY. >> YES.

>> AND SO THEN I'M TRYING TO RELATE THAT TO THE RELATIVE FEE STRUCTURES FOR TIER ONE THROUGH FIVE, I BELIEVE. AND IN THOSE COST RECOVERIES, WE'RE LISTING AS A 10% COST RECOVERY. SO HELP ME CONNECT THE DOTS BETWEEN INCREASING FEES BY 20%. ROUGHLY. IT VARIES. I'M ONLY SAYING ROUGHLY 20% GETS US TO 100%. BUT THEN HOW ARE WE STILL ONLY RECOVERING? YOU KNOW, HOW ARE WE STILL SUBSIDIZING 90%? SO JUST HELP ME CONNECT THOSE DOTS A LITTLE BIT, PLEASE.

>> ON THE SPECIAL EVENTS FOR THE PARKS ONE, THERE'S ALREADY A CONTINUUM ON ON FEES. WE HAVE A SCALE THAT SHOWS GREAT PUBLIC BENEFIT TO INDIVIDUAL BENEFIT ON WHAT SHOULD BE RECOVERED. SO CERTAINLY THE GOAL FOR SPECIAL EVENTS ON THAT CONTINUUM IS AROUND A 10% COST RECOVERY. SO THAT IS DIFFERENT THAN THE PUBLIC SAFETY FEES FOR THAT INDIVIDUAL NEEDING AN OFFICER.

THESE FEES LOOK AT IS THERE GOING TO BE ALCOHOL. THE GOAL HERE IS LIKE OVERALL EXAMINING THE PERMIT REVIEW AND MAKING SURE THERE'S TRAFFIC CONTROL PLANS. SO A LARGER PUBLIC BENEFIT AS THEY GET TO THE PUBLIC SAFETY IT'S BASED ON ARE THEY SERVING ALCOHOL. WHAT'S GOING ON WITH THE EVENT. SO THERE'S NOT AN ESTABLISHED CONTINUUM FOR THE SPECIAL THE PUBLIC SAFETY ONES. AND WE'VE BEEN OPERATING OFF 100% COST CONTINUUM WORKING TOWARDS THAT THE LAST COUPLE YEARS. WE CERTAINLY CAN TAKE A PHASED APPROACH, BUT FELT GO GETTING CLOSER TO THAT 10% COST RECOVERY. BECAUSE IF YOU LOOK LIKE ON A LARGE TIER TWO EVENT,

IT GO FROM 250 TO $6282, WHICH IS A LARGE INCREASE. >> SO. SO IF I CAN PARAPHRASE A LITTLE BIT, IF I HAVE A ONE OFF SMALL EVENT, IT'S GOING YOU'RE PROPOSING THE NEW FEE STRUCTURE FOR WHATEVER OFFICERS IN AND PUBLIC SAFETY. BUT IF INSTEAD I WANT TO HAVE SOMETHING THAT FITS INTO THESE TIER STRUCTURES, THAT'S A LARGER, MORE INVOLVED. AND SO WE'LL HAVE SORT OF THESE

AGGREGATE NEEDS THAT THAT WILL FIT INTO THESE FEE STRUCTURES. >> THIS IS THE PERMIT, THE PERMITTING FEE. SEPARATE. SO THE PUBLIC SAFETY FEES LIKE FOR TIER FIVE EVENT THEY'RE GOING TO HAVE BOTH. THEY'RE GOING TO PAY TO GO THROUGH THE SPECIAL EVENT PROCESS, PAYING THE $250 FOR THEIR PERMIT TO BE REVIEWED. AND THEN IF THEY'RE SERVING ALCOHOL AND WE SAY, HEY, YOU'RE GOING TO

NEED FIVE OFFICERS, THEY'LL BE PAYING THAT PUBLIC SAFETY COST. >> SO IT'S.

>> THE FOUR TIER FIVE. IT'LL BE THE 628 PLUS. HOWEVER, MANY OFFICERS ARE JUSTIFIED IN THE IN

THE PROPOSAL. >> CORRECT. >> OKAY. SO IT'S A BOTH.

>> AND IT'S A BOTH AND OKAY. BUT YOU MAY HAVE AN EVENT LIKE AN EXTRA SMALL EVENT LIKE A MARKET MAY NOT REQUIRE ANY POLICE. AND THEN WE TALKED ABOUT HAVING SOME FLEXIBILITY FOR THE SMALLER EVENTS AS THEY BECOME MORE STABLE. AND THEY HAVE A STANDARDIZED TRAFFIC CONTROL PLAN THAT YOU COULD POTENTIALLY MOVE DOWN A TIER. BUT NOT ALL EVENTS WILL REQUIRE A PUBLIC SAFETY COMPONENT. BUT ALL EVENTS WITH ATTENDANCE OVER 200 NEED TO GO THROUGH THE PROCESS.

>> OKAY, I UNDERSTAND MUCH BETTER NOW. I APPRECIATE THAT ON THE ON ON THE ROUTES IS IT STAFF'S PROPOSAL TO ONLY HAVE THE THREE ROUTES? THERE IS NO OPPORTUNITY FOR A CUSTOM ROUTE.

>> WHAT WE PROPOSED IS WE TOOK THIS ITEM TO COMMUNITY PARTNERSHIP IN MAY, AND WE PROPOSED ALMOST PILOTING LIKE THERE WAS A NEED FOR GETTING WE DON'T HAVE CRITERIA AROUND. YOU COULD REQUEST TO HAVE A PARADE ON FRIDAY NIGHT AT 6 P.M. PROBABLY NOT A GREAT IDEA, BUT WE DON'T. WE DIDN'T HAVE ANYTHING SAYING THAT YOU COULD NOT ATTEMPT TO GO THROUGH THAT PROCESS. SO WE'RE PILOTING THE STANDARDIZED ROUTES THROUGH THE SUMMER AND GOING TO GET THAT FEEDBACK ON HOW IT WORKS, AND THEN MOVE FORWARD WITH MOVING FORWARD WITH THE THREE OR WITH MODIFICATIONS. WE TALKED ABOUT THE RODEO EARLIER. WE HAD TO WE PRESENTED THOSE THREE AND HAD TO MAKE A MODIFICATION TO ONE OF THE ROUTES, BECAUSE WE HAD A START AND A STOP AT DIFFERENT PLACES, WHICH ISN'T FEASIBLE IF YOU'RE ON HORSES. SO AS WE'RE GOING THROUGH IT, WE'RE TAKING THAT FEEDBACK WE'RE HEARING. BUT THE GOAL IS TO HAVE STANDARDIZED OPTIONS WITH STANDARDIZED

[01:25:03]

TRAFFIC CONTROL PLANS AND UNDERSTANDING OF WHAT IT TAKES TO STAFF THOSE.

>> OKAY, SO JUST HELP ME UNDERSTAND A I HEARD NO, WE'RE THE DESIRE IS TO GET NO CUSTOM ROUTES, ONLY THE THREE ROUTES. AND B WHEN ARE WHEN WOULD THESE KICK IN.

>> THEY KICKED IN NOW. SO FOR WE MADE THEM EFFECTIVE IN MARCH. SO ALL EVENTS THROUGH THE END OF THE FISCAL YEAR WILL BE WORKING OFF THESE THREE ROUTES. AND THEN EVENTS START APPLYING. AND THE NEXT MONTH, NEXT FEW WEEKS THEY'LL START APPLYING FOR THEIR SPONSORSHIP. SO WE'LL BE

COMMUNICATING. THESE ARE THE ROUTES THAT YOU CAN SELECT FROM. >> NOW I APPRECIATE THE CLARITY.

IF I CAN'T RECALL VERY MANY OF THESE KINDS OF THINGS HAPPENING. BUT IF THERE WERE AND MAYBE THE STATISTICS ARE ZERO. SO YOU CAN TELL ME THAT. BUT IF FOR SOME REASON THERE WAS, I'M JUST GOING TO MAKE SOMETHING UP. IF THERE WAS A. NORTHLAKE LAKES NEIGHBORHOOD PARADE OR SOMETHING THROUGH THE NEIGHBORHOOD, THAT WOULDN'T INVOLVE ANY OF THE THREE ROUTES.

>> THAT'S CORRECT. WE DON'T TREAT. >> THOSE THE SAME.

>> WOULD WE DO SOMETHING LIKE THAT? >> WE. SO PARADES ARE TALKING ABOUT WITH BARRICADES. I MAY NEED TO TAG POLICE AND ANSWER THAT. BARRICADES WHERE THERE'S VEHICLES. SO LIKE AN EXAMPLE IS THE MLK WALK WOULD BE EXEMPT FROM THIS. THIS ISN'T SMALLER GROUPS GOING FROM A SMALLER AREA. DON'T FALL INTO THIS PARADE ROUTE CATEGORY.

>> SO IF IT WAS SMALL ENOUGH IT WOULD STILL BE ABLE TO BE. CUSTOM IS WHAT I'M.

>> HEARING. >> I THINK. SO, I MEAN, WE I DON'T WANT TO SAY THAT FOR SURE.

WE NEED TO LOOK AT WHAT THE IMPACTS ARE. BUT WE TALKED ABOUT THE MLK WALK SPECIFICALLY AS BEING EXEMPT FROM THIS PROCESS. OTHER THAN THAT WALK, I DON'T KNOW THAT THERE HAS BEEN A NEED

OR REQUEST FOR EVENTS LIKE THAT. >> NO. AND I PARTICIPATE IN MLK WALK EVERY ALMOST EVERY YEAR, AND LITERALLY BECAUSE POLICE SUPPORTS IT AND THEY'RE OUT THERE IN FULL STRENGTH ANYWAY.

AND IT'S LITERALLY A WALK FROM THE SENIOR CENTER TO THE MLK CENTER. AND WE DON'T BLOCK ROADS. I MEAN, WE HAVE TO HAVE AN OFFICER, RIGHT, RIGHT AT THE ONE ROAD. BUT NO, THAT DOESN'T GO THROUGH THE SAME NORTH LAKES. HAVING THEIR OWN LITTLE PARADE IN THEIR NEIGHBORHOOD WOULD NOT

BE NECESSARILY A PART OF THIS. >> WE EVALUATE IT AND DETERMINE, BUT.

>> WE'LL WORK WITH THEM, THOUGH, IF THEY WANT TO ASK SOME QUESTIONS. OR HOW COULD WE DO IT BETTER? BUT WELL, I THINK THE OTHER SIDE OF THIS IS AND THEY'VE DONE SUCH A GOOD JOB ON THIS, IS THIS IS ALSO AN ATTEMPT TO HELP SAVE SOME MONEY ON THE EVENT SIDE AS WELL, MAKING IT EASIER FOR THEM, MAYBE GET IT THROUGH FASTER PROCESS BECAUSE YOU HAVE A STANDARD ROUTE. YOU DON'T TAKE AS LONG ROUTE IN THAT THING AROUND. THE OTHER THING IS, I MET YESTERDAY WITH A GROUP AND TALKED ABOUT WHAT CAN WE DO TO HELP YOU DO BETTER AT YOUR SPONSORSHIPS? AND I TOLD THEM THAT I WOULD PERSONALLY HELP THEM COSIGN A LETTER WITH SOME OF THE NEWER BUSINESSES TO HELP GET NEW SPONSORSHIPS IN. AND SO WHILE WE NEED TO RAISE OUR FEES TO COVER OUR COSTS PER SE, THERE'S OTHER THINGS WE CAN DO WITH THE NEW TOOL TO HELP THEM WITH JUSTIFYING THE NUMBER OF PEOPLE THAT ARE THERE, WHICH GETS THEM MORE OPPORTUNITIES FOR GRANTS, WHICH WE CAN HELP THEM GET, AND THOSE KINDS OF THINGS. SO THIS IS A TWO SIDED COIN AND NOT JUST, OH, WE'RE DOING THIS FOR YOU. THERE'S OTHER THINGS WE'RE TRYING TO DO TO HELP THEM BE MORE SUCCESSFUL.

>> NO I APPRECIATE ALL THAT. HAD STAFF GIVEN THE FEE STRUCTURES AND SOME OF THE CONSTRAINTS THAT THEY'RE BEING RECOMMENDED. ONE OF THE OFFSETS IN EARLIER SLIDES WAS THE IN-KIND GRANT TO SUPPORT AT, I BELIEVE, 50% KIND OF NUMBER. AND YOU GAVE A LITTLE HISTORY OF GOING FROM THE 200,000 TO THE 400,000 HAS HAS STAFF GIVEN ANY THOUGHT TO WHETHER THAT NUMBER NEEDS TO BE

INCREASED BECAUSE WE ARE CHANGING THE FEE STRUCTURE? >> IT IS A IT COMES COMPLETELY OUT OF THE GENERAL FUND. THOSE EXPENSES STILL OCCUR. SO NO, WE'RE NOT RECOMMENDING AT THIS TIME THAT THAT AMOUNT BE INCREASED. WE'RE ASKING FOR. SO ONE OF THOSE CRITICAL PIECES OF DATA WE'RE ASKING FOR IS WHAT OTHER EVENT HOW ARE YOU SOLICITING SPONSORSHIP FOR YOUR EVENT? WHAT OTHER WAYS ARE YOU DOING TO BRING REVENUE IN? WHAT ARE YOUR BOOTH RENTAL FEES? BUT AS FAR AS THE CITY SUPPORT, WE'RE NOT RECOMMENDING INCREASING THE IN-KIND AMOUNT.

THE OTHER PIECE IS THOUGH, THEY, THE COMMUNITY PARTNERSHIP, DID RECOMMEND INCREASING THAT.

YOU'RE ONLY ELIGIBLE TO APPLY IF YOUR EVENT IS GOING TO HAVE OVER 200 PEOPLE. SO TRYING TO ALSO NARROW THE POT AND MAKE SURE WE'RE MAXIMIZING OUR DOLLARS AND THAT OUR INCOME IS GOING UP INSTEAD OF A LARGE POOL, THAT WE'RE FOCUSED ON THE LARGER EVENTS FOR SPONSORING THE

IN-KIND. >> AND SO IT WAS THE WILL OF COUNCIL TO INCREASE THE IN-KIND

THAT WOULD THAT WOULD HAPPEN DURING THE BUDGET PERIOD. >> YES, THAT WOULD BE.

>> A BUDGET CONVERSATION. >> I WANT TO BE HONEST. THIS IS. >> NOT GOING TO. I THOUGHT SO.

>> WE REALLY HAVE SOME PROBLEMS WITH THE. WE AREN'T SUGGESTING IT BECAUSE, YOU KNOW, WHEN WE

[01:30:09]

PRESENT TO YOU THE BUDGET AND THE REDUCTIONS THAT WE'VE MADE, WHICH THANKFULLY DOES NOT INVOLVE POSITIONS, BUT IT DOES INVOLVE HOLDING A BUNCH OF POSITIONS VACANT OVER 200. THIS IS NOT SUSTAINABLE. AND THE REASON WHY IS, AS YOU HAVE GIVEN MORE MONEY OUT OF THE GENERAL FUND EVERY YEAR, YOU INCREASE IT FROM 250 TO 400, WHICH IS CERTAINLY THE PREROGATIVE OF COUNCIL. I AM NOT JUDGING THAT. HOWEVER, THESE GROUPS HAVE BECOME RELIANT ON THAT AND THEY COUNT ON IT. AND SO THEIR SPONSORSHIPS HAVE DROPPED. THE NUMBER OF PEOPLE THAT ARE ATTENDING THESE EVENTS IS NOT ACCURATE. AND SO WE BASE WHAT WE GIVE OUR FIRE AND POLICE AND PUT THEM OUT THERE FOR AN EVENT THAT THEY SAY THEY'RE GOING TO BE 200,000 PEOPLE AND THERE'S LESS THAN 30,000. THEY DIDN'T NEED AN AMBULANCE, THEY DIDN'T NEED TWO AMBULANCES. AND SO IN A WAY, THIS IS REALLY RIGHTSIZING THE SPECIAL EVENTS PROCESS, NOT TO BE MEAN OR ANYTHING ELSE. IT'S TO SAY, WHAT CAN WE DO TO HELP YOU? HOW CAN WE MAKE IT EASIER FOR YOU TO PROCESS YOUR EVENTS, DRAWING MORE PEOPLE FROM OUT OF TOWN? YOU REALLY OUGHT TO LOOK AT MORE HOT FUNDS INSTEAD OF THE GENERAL FUND. AND WHAT I'D LIKE TO SEE IS AND THAT'S WHY I OFFERED YESTERDAY WHEN I MET WITH THEM, LET ME HELP YOU, BECAUSE THIS IS, AGAIN, THIS IS SOMETHING I SPENT YEARS OF WORKING ON IN BIG CITIES LIKE AUSTIN AND SAN JOSE AND PHOENIX, WHERE THOSE EVENTS THAT CAME TO THE CITY WERE EVENTS THAT PUT HEADS IN BEDS AND GENERATED MONEY, AND THEY PAID FULL PRICE FOR EVERYTHING, FOR THE RENTAL, FOR THE STAFF COSTS. AND THEN THEY POURED MONEY BACK INTO THOSE DEPARTMENTS THAT WERE THERE. WE I LOVE OUR HOMETOWN EVENTS. YOU KNOW, I COME EVERY YEAR FOR ARTS AND JAZZ. I BUY THINGS FOR CHRISTMAS AND THINGS. BUT WHAT WE CAN'T DO IS ALLOW THEM TO CONTINUE TO COUNT ON JUST MONEY OUT OF THE GENERAL FUND THAT WE DON'T HAVE. AND IN THE FUTURE I HOPE WE HAVE MORE MONEY. BUT FOR THE NEXT YEAR, MAYBE TWO, WE AREN'T GOING TO HAVE THAT MONEY UNLESS WE WANT TO CUT OTHER THINGS. AND SO I WOULD RATHER SAY IT'S NOT A DEATH. AND WHAT TWO THINGS ONE IS WE CAN CUT YOUR COST FROM SOME OF THE THINGS WE'VE BEEN ALLOCATING THAT WE DIDN'T NEED. LIKE I SAID, YOU DON'T NEED TWO AMBULANCES AND YOU DON'T NEED ALL THESE FIREFIGHTERS AND YOU CAN CUT THAT COST. AND HERE'S ANOTHER WAY YOU CAN CUT IT. AND LET ME HELP YOU WRITE A LETTER OF SPONSORSHIP. AND I KNOW SOME BUSINESSES THAT MIGHT BE WILLING. AND THEN HAVE YOU THOUGHT ABOUT, LET'S MAKE SURE WE HAVE CALCULATED THE NUMBER OF PEOPLE THAT ARE COMING FROM OUT OF TOWN. AND THAT'S PUTTING THAT'S HOT FUNDS THAT ARE IF THEY'RE STAYING IN THE HOTEL, SOME OF THE VENDORS ARE STAYING IN THE HOTELS. SO IT'S REALLY A WE'RE NOT TRYING TO SLAP YOU WITH THIS. WE'RE TRYING TO SAY, LET'S GET THIS RIGHT SIZE, BUT THEN LET'S ALSO FIGURE OUT A WAY TO HELP YOU TO BE MORE SUCCESSFUL. AND THEY'RE EVEN SAYING FROM SOME OF THE EVENTS THAT I'VE TALKED TO, THAT THEY'RE GOING TO HAVE TO CUT BACK ANYWAY BECAUSE THEY'RE NOT GETTING THE GRANTS THAT THEY NEEDED. THIS IS WAY BEFORE WE EVEN SAID WE WERE GOING TO RAISE FEES. THEY'RE NOT GETTING SOME OF THE GRANTS, OR THE GRANTS ARE LESS THAN WHAT THEY GOT BEFORE THROUGH THE ARTS FOUNDATION AND THINGS LIKE THAT. SO TO BE REAL HONEST WITH YOU, WE'RE NOT RECOMMENDING INCREASE IT. AND AS A PART OF OUR BUDGET REDUCTIONS, IT'S ALSO IN THERE BECAUSE OF WHERE WE'VE CUT TRAVEL, WE'VE CUT TRAINING, WE'VE CUT FOOD, WE'RE HOLDING 200, OVER 200 VACANCIES. AND YOU'LL SEE THAT IN THE BUDGET PRESENTATION. DO WE PLAN ON THIS BEING FOREVER? NO, BUT THIS WAS A WAY TO PRESERVE POSITIONS AND THEN TO SAY, BUT WE'RE HERE TO HELP YOU GO OUT AND GET SPONSORS, HELP YOU FIND MONEY. AND WHAT CAN I DO TO HELP? AND SOMETIMES THEY DON'T KNOW THE NEW BUSINESSES THAT ARE HERE. THEY DON'T KNOW WHERE THEY CAN GO GET A $25,000 GRANT OR MONEY FROM A BUSINESS THAT MOVED IN. SO IT'S A DOUBLE EDGED THING WE'RE TRYING TO DO, SO THAT WE'RE TRYING TO NOT BE HEAVY HANDED ON ONE SIDE AND THEN SAY, SORRY, IT'S ALL ON YOU. WE'RE TRYING TO HELP, BUT I DON'T WANT TO SIT HERE AND SAY, WELL, WE'RE NOT RECOMMENDING RAISING IT, TO BE HONEST WITH YOU. IT'S PART OF OUR REDUCTION

PACKAGE. >> I WILL SAY ONE THING THE COMMUNITY PARTNERSHIP HAS DONE AS ONE OF THOSE IMPROVEMENTS, EVENT ORGANIZERS COME IN AND SPEAK TO THE COMMITTEE, TALK ABOUT THEIR EVENT, HOW ARE THEY MARKETING IT, HOW ARE THEY TAKING THOSE HOTEL STAY NIGHTS? AND THEY'VE DONE A REALLY GOOD JOB, THIS COMMITTEE ON THAT DIALOG TO REALLY UNDERSTAND HOW THAT EVENT IS WORKING, TO DRAW PEOPLE IN, TO SPEND MONEY AND SALES TAX TO STAY THE NIGHT, AND

WHAT THAT ECONOMIC IMPACT LOOKS LIKE FOR THE CITY. >> OKAY.

>> THANK YOU. >> REPRESENTATIVE DISTRICT THREE.

>> YEAH. THANK YOU. I CAN IMAGINE ALL KINDS OF GOOD THINGS COMING FROM HAVING A BETTER FEEL FOR CROWD SIZE AND IN TOWN AND OUT OF TOWN. THAT'S THAT'S AWESOME. IS THERE ANY KIND OF A MODELING ASSUMPTION OR TRACK RECORD OR WHATEVER THAT YOU WOULD USE TO RELATE ESTIMATED CROWD SIZE TO SALES TAX? IMPACT OR OTHER QUESTIONS? YOU KNOW, I MEAN, JUST TO BE A LITTLE LESS MYSTERIOUS ABOUT IT. I MEAN, MY THOUGHT IS I TOTALLY GET WHAT YOU'RE TRYING TO DO, YOU KNOW, COVER THE COST, BUT YOU RAISE COST. YOU'RE GOING TO HAVE LESS OF THAT ACTIVITY, YOU KNOW, IS THERE A KIND OF A BREAK EVEN OR SOMETHING MAYBE DOESN'T RECOVER VERY MUCH? I REALLY DON'T KNOW.

[01:35:03]

>> ABSOLUTELY. SO THE WAY THAT THE CITY OF EXCUSE ME. JESSICA WILLIAMS CHIEF FINANCIAL OFFICER THE WAY THAT THE CITY RECEIVES SALES TAX FROM THE STATE IS ON A MONTHLY BASIS. WE DO HAVE SOME DETAILED DATA BY VENDOR. HOWEVER, WHEN WE HAVE FESTIVALS AND THINGS THAT BRING IN A VARIETY OF VENDORS, WE DON'T HAVE A PARTICULAR LIST OF WHO THOSE VENDORS WERE. SO WE ARE ABLE TO TAKE THOSE MONTHLY AMOUNTS AND LOOK AT OUR POPULATION AND SAY, IF YOU HAD 30,000 PEOPLE FOR THREE DAYS, YOU'RE GOING TO ROUGHLY BRING IN X AMOUNT.

>> IS THAT, YOU KNOW, INSTRUCTIVE? I MEAN, LIKE, WOULD WE WELL, DOES IT BREAK EVEN? I

GUESS PROBABLY NEVER DOES. >> NO, IT NEVER DOES. >> OKAY. ALL RIGHT.

>> THANK YOU. AND I'M GOING TO ADD. >> ONE I JUST WANT TO ADD ONE MORE THING ON THAT. SO OUR CONVENTION AND VISITORS BUREAU DISCOVERED IT AND DID JUST PURCHASE AN ECONOMIC IMPACT TOOL FOR FESTIVAL IMPACTS. SO WE ARE WORKING ON PUTTING TOGETHER THOSE WITH THE APPLICATIONS THIS YEAR FOR THE COMMITTEE. IT'S JUST ONE TOOL. AND HOW WE'RE GOING TO ALLOCATE IT CERTAINLY DOESN'T DETERMINE WHAT THAT ALLOCATION SHOULD BE BECAUSE YOU'RE RIGHT, IT'S NOT GOING TO BE SOME OF THEM. THERE'S A REASON WE DO IT. IT'S IMPORTANT AND IT DOESN'T BRING IN TONS OF MONEY. SO WE'RE JUST ADDING THAT AS WE CONTINUE TO HAVE MORE DATA

TO BE HELPFUL IN MAKING THOSE ALLOCATION DECISIONS. >> REPRESENTATIVE DISTRICT ONE.

>> I JUST HAPPEN TO BE ON THAT COMMITTEE, AND I MUST SAY THAT IT IS FAR THE BEST COMMITTEE TO BE ON. WE GET A CHANCE TO SEE JUST THE CREATIVITY AND ALL OF THE ENERGY THAT OUR COMMUNITY IS PUTTING IN TO HAVING THESE EVENTS, THE ARTS AND JAZZ AND THE RODEO FOLKS. AND NOW WE'RE THE HALLOWEEN DESTINATION. AND IT'S JUST IT'S JUST SO MUCH ENERGY OUT THERE. AND RIGHT NOW WHAT'S HAPPENING TO US IS THAT WE ARE WE ARE LOOKING FORWARD TO THOSE HIGH, HIGH ATTRACTIONS, THOSE THINGS THAT MAKE US A DESTINATION. AND WE HAVE SO MANY MORE, SO MANY OTHER PEOPLE THAT'S DOING A GREAT JOB. THEY MAY NOT BE ON THAT HIGHEST LEVEL LIKE THOSE FOLKS, BUT WHAT'S HAPPENING TO US IS THAT WE'RE FINDING THAT WHILE ALL OF THAT IS GOING ON, A MAJORITY OF THE PEOPLE THAT ARE OUT THERE AT THESE EVENTS ALREADY LIVE HERE. SO WE'RE HAVING TO PUT A LOT OF PRESSURE ON OURSELVES TO MAKE SURE THAT WE'RE BRINGING IN EVENTS WHERE PEOPLE ARE PUT IT AROUND THINGS, EVENTS WHERE PEOPLE ARE GOING TO STAY IN THE HOTELS AT LEAST 1 OR 2 NIGHTS.

AND WE DO HAVE WE DO HAVE PLANNERS THAT CAN DO THAT. YOU KNOW, OUR THIN LINE AND OUR BLACK FILM FESTIVAL. AND, YOU KNOW, ALL OF THOSE PEOPLE ARE ATTRACTING PEOPLE THAT WILL SPEND THE NIGHT. AND SO THE NOW THE QUESTION BECOMES, YOU KNOW, HOW MANY OTHER VENUES CAN WE ATTRACT HERE, MAYBE TO EVEN COME HERE OR MIGHT NECESSARILY JUST START HERE? BUT AS LONG AS THOSE HEADS ARE IN THE BIDS, AS THEY CALL IT, ARE YOU ALL GOING TO I MEAN, IT'S GOT TO BE SOME KIND OF TOOL TO LEVEL THE ONES THAT ARE NOT QUITE AT THAT HIGHEST LEVEL, THE THOUGHT PROCESS OF PUSHING THEM. I THINK THIS IS WHAT YOU WERE TALKING ABOUT, TO PUSHING THEM TO A HIGHER LEVEL, BECAUSE WE DO NEED TO DO SOMETHING ELSE WITH THOSE FUNDS COMING OUT OF THE GENERAL FUND, AND IT IS GOING TO BE A STRUGGLE FOR US THIS YEAR. SO WE'RE LOOKING FORWARD TO THAT. IT'S JUST A COMMENT, BUT I'M DEFINITELY SUPPORTIVE OF IT. AND OH, AND THE OTHER THING I NOTICED ABOUT EVERY PRETTY MUCH EVERYONE THAT'S COMING IN IS THEY'RE LOOKING FOR THOSE FUNDS TO HELP WITH THEIR MEDIA. THEY HAVE GOT TO DO I DON'T KNOW. THEY NEED TO PUSH THAT WORD OUT FURTHER AND FURTHER. AND SO THERE'S A SIGNIFICANT COST WITH THAT. I'M WONDERING IF THE CITY CAN KIND OF ASSIST WITH FROM THAT ANGLE, YOU KNOW, BETWEEN THEM AND THE CHAMBER OF COMMERCE AND WHOEVER ELSE IS RESPONSIBLE FOR ALL OF THAT MEDIA STUFF, WHETHER OR NOT THERE COULD BE SOME TYPE OF CONNECTION THERE, SINCE I'M JUST KIND OF NOTICING THAT THEY'RE USING THAT THOSE

HOT FUNDS A LOT FOR THEIR FOR THEIR MEDIA TYPES. >> SO I THINK THAT'S A GREAT QUESTION. AND I THINK ONE OF THE THINGS, AS I DISCUSSED YESTERDAY WITH ONE OF THE GROUPS IS THIS IS REALLY A REINVENTION OF THINGS TO AND THEY'VE REALLY DONE A GREAT JOB WITH CHRISTINE AND GARY AND THE TERRANCE AND ALL THE STAFF. I MEAN, IT'S LEVEL SETTING THIS IT'S NOT TO BE CRITICAL OR TO, OH, WE'RE YOU'RE BAD PEOPLE. I WANT TO ELEVATE THESE EVENTS. I WANT TO ELEVATE TO WHERE THIN LINE FEST IS, IS LIKE, YOU GOT TO GO, DENTON. JUST LIKE FOR HALLOWEEN, 31 DAYS OF HALLOWEEN, ARTS AND JAZZ. I TALKED TO THEM ABOUT SOME THINGS THAT THEY COULD DO DIFFERENTLY TO BRING IN TO GET SPONSORS, WHETHER IT'S WITH UNT, WORKING WITH THEM CLOSER AND OTHER THINGS TO HAVE A THEY WANT TO HAVE A KIDS MUSIC AREA. AND YET WE HAVE IN OUR OWN BACKYARD

[01:40:03]

ONE OF THE BEST COLLEGES IN THE COUNTRY FOR MUSIC. SO A DIFFERENT WAY OF THINKING ABOUT THINGS. BUT ALSO I THINK I'M GOING TO ASK STAFF. WE HAVE A NEW CVB DIRECTOR, WE HAVE SPECIAL EVENTS STAFF, WE HAVE OUR MARKETING CHIEF COMMUNICATIONS OFFICER THAT AFTER WE GET THROUGH ALL OF THIS, THAT WE SET UP A WORKSHOP WITH ALL OF THOSE PARTIES INVOLVED TO WORK WITH THESE GROUPS TO TALK ABOUT WHAT IS IT YOU NEED TO ELEVATE YOUR EVENT? WHAT IS IT YOU NEED? WHAT DO YOU OTHER THINGS? THEY DON'T HAVE THE SKILLS SOME OF OUR STAFF HAVE IN PLANNING AND PROGRAMING. SO WHAT ARE THE THINGS WE CAN DO TO HELP THEM ELEVATE THEIR EVENT? GET MORE PEOPLE AT THEIR EVENT? CAN WE HELP MARKET THEIR EVENT? PUT IT ON OUR WEB PAGE.

WHAT ELSE WE CAN DO TO HELP AS A PART OF HALLOWEEN? WHAT'S THE NEXT EVENT COMING? SO ONCE WE GET SORT OF LEVEL SET, GET THROUGH THIS BUDGET PROCESS THAT WE SET UP THIS TIME TO OFFER THOSE THINGS IN A WORKSHOP TO SAY, HERE'S THE SKILLS WE HAVE, WE CAN'T DO IT FOR YOU, BUT WE CAN CERTAINLY HELP YOU BETTER UNDERSTAND HOW TO DO IT. AND THEN EVEN GOING OUT AND GETTING MONEY FROM BUSINESSES, THERE'S A WHOLE ART TO THAT TO GETTING SPONSORSHIPS, AND YOU HAVE TO GIVE THEM SOMETHING IN RETURN. AND SO THAT'S OUR GIFT, BUT OUR HELP TO THEM SO WE CAN ELEVATE

THOSE EVENTS. >> YEAH. >> ANY OTHER QUESTIONS FOR STAFF

REPRESENTATIVE DISTRICT FIVE. >> THE ONE ONE OF THE THINGS THAT I'M SORRY I APPRECIATE ALL THIS. THANK YOU FOR THE FORESIGHT AND ALL THIS ONE THING I HAVEN'T HEARD, AND I'M SURE THE ANSWER IS YES, BUT FROM FROM LEGAL. I UNDERSTAND WE'RE TRYING TO STANDARDIZE THINGS. IS THERE FOR THE FESTIVALS AND WHATNOT. IS THERE A STANDARD LEGAL CONTRACT THAT EVERY YEAR THEY JUST KIND OF RINSE AND REPEAT IN TERMS OF GOING THROUGH, OR IS YOUR DEPARTMENT DOING THIS EVERY YEAR BASED ON CHANGING CONDITIONS? DO YOU HAVE SOME KIND OF STANDARD ALREADY SET.

>> UP STANDARD TEMPLATE. >> YEAH. OKAY. SO NOT SPENDING A LOT OF TIME AND OKAY. THANKS TO THE PARTNERSHIP COMMITTEE FOR GOING GOING THROUGH ALL THIS. MR. CITY MANAGER, I KNOW YOU MENTIONED THAT YOU SPOKE WITH ONE GROUP ABOUT THIS ALREADY AND LET THEM KNOW IT'S COMING BASED ON THE PRESENTATION, THE BACKUP I SAW, WE SAW THE TOP FIVE GROUPS. HAVE THE OTHER FOUR GROUPS BEEN CONTACTED PRIOR TO TODAY TO LET THEM KNOW ABOUT ALL THE FEE INCREASES AND WHATNOT.

>> SO NOT DIRECTLY, BUT WE HAVE MADE THEM AWARE OVERALL AS A GROUP THAT WE ARE MAKING CHANGES. WE HAVE HAD SEVEN GROUPS COME IN SO FAR TO PRESENT TO THE COMMUNITY PARTNERSHIP COMMITTEE. THEY UNDERSTAND THAT THE PROCESS THAT WE'RE GOING THROUGH THIS YEAR AND UNDERSTANDING THAT IT MUST MATCH AND MAKE SENSE FOR WHAT WE'RE DOING MOVING FORWARD AS FAR AS OUR HOT FUNDS, OUR SPECIAL EVENTS, OVERALL IN-KIND FEES. AND THEN WE HAVE AN ADDITIONAL SEVEN GROUPS COMING IN ON JUNE 27TH THAT WILL PRESENT AS WELL AND WILL RELAY THAT MESSAGE.

>> WHEN ARE THE OTHER FOUR GROUPS IN THAT TOP FIVE LIST? WHEN ARE THEY GOING TO FIND OUT

ABOUT THIS? ARE THEY FINDING OUT ABOUT THIS TODAY? >> I THINK THEY'VE ALL BEEN GIVEN SORT OF WE'RE LOOKING AT AND WE'RE GOING THROUGH AND REVIEWING. I PERSONALLY WANT TO SIT DOWN WITH A GROUP BECAUSE I HAD SOME THE NUMBERS WEREN'T RIGHT AND SOME OTHER THINGS, AND I WANTED TO BE HONEST AND SAY, WE REALLY NEED TO CAPTURE THE NUMBERS CORRECTLY SO THAT THE COMMITTEE CAN CAN LOOK AT WHAT THEY ALLOCATE. BUT ALSO, I KNOW YOU'RE STRUGGLING, SO WHAT CAN I DO TO HELP YOU? I THINK WE WILL WE WILL HAVE THOSE KINDS OF CONVERSATIONS. THEY KNEW THAT CHANGES WERE COMING BECAUSE WE SORT OF TALKED TO THEM. AS THE EVENTS ARE GOING ON. CHRISTINE HAS DONE A FABULOUS JOB WORKING WITH GLEN CARLTON WITH THE RODEO. HE COULDN'T BE MORE PLEASED. AND JUST TO GIVE YOU AN EXAMPLE, IT'S HAVING A CONVERSATION WITH HIS GROUPS. HE HAS A BETTER RELATIONSHIP WITH THE SHERIFF'S DEPARTMENT. SO WHAT DID HE SAY? HE SAID, DO YOU MIND IF I USE THE SHERIFF INSTEAD OF THE POLICE? AND WE'RE LIKE, NO, WE. THAT'S GREAT. AND HE SAID, I'LL JUST PROVIDE SOME SLOTS THAT THEY CAN'T FILL IN. AND IF THE POLICE WANT TO USE THEM, WELL, THAT'S EVEN BETTER FOR US. IT'S A MATTER OF HAVING THESE DISCUSSIONS TO HAVE A OKAY, WE'RE HAVING TO RIGHT SIZE OUR ORGANIZATION, WHAT WE'RE DOING, BUT WHAT CAN WE DO TO HELP YOU SO YOU CAN BE SUCCESSFUL. SO WE WILL CONTINUE TO HAVE THOSE BECAUSE THIS DOESN'T COME INTO EFFECT UNTIL OCTOBER. AND SO WE'RE JUST AT THE TIP OF IT. BUT WE DIDN'T WANT TO GO OUT AND START TALKING TO PEOPLE WITHOUT YOU KNOWING THAT THIS WORK HAS BEEN GOING ON. AND OF COURSE, WITH THE COMMITTEE AS WELL. BUT NO, WE WILL NOT LET SOMEBODY HANG OUT THERE. AND LIKE I SAID, CHRISTINE SAT DOWN AND WORKED REALLY DILIGENTLY WITH GLEN, HAD LUNCH WITH HIM, SAID, YEAH, WE CAN WORK AROUND THIS. AND I THINK HE WAS WORRIED WE WERE GOING TO SAY, NO, YOU HAVE TO USE OUR POLICE. AND WE WERE LIKE, ABSOLUTELY NOT.

>> SO THE INTENTION, PARTICULARLY WITH THE GRAPH OF THE TOP FIVE, THE INTENTION IS

AT LEAST TO SIT DOWN WITH THE OTHER FOUR THAT YOU HAVE IT. >> WE WILL.

>> DO THAT. >> OKAY. YES. >> GREAT. THANK YOU FOR THAT COMMITMENT. LAST QUESTION. AND THIS IS SOMETHING I JUST MENTIONED TO MY COUNCIL MEMBER, HOLLAND, ABOUT ONE OF THE THINGS THAT WE ASKED FOR ON OUR RECENT PILGRIMAGE TO DC WAS BOLLARDS.

ANY IDEA WHAT BOLLARDS WOULD DO TO HELPING TO BRING DOWN THE COST? AM I CORRECT IN MAKING THE ASSUMPTION THAT IF WE HAVE BOLLARDS THAT POP OUT OF THE GROUND SPECIFIC PLACES AROUND THE SQUARE, WE MIGHT NOT NEED POLICE THERE, IS THAT GOING TO? IS BOLLARDS ONLY GOING TO

[01:45:01]

INCREASE NECESSARILY SECURITY? BUT WOULD IT ALSO HAVE AN A DECREASE IN COST FOR THESE

GROUPS? DOING THESE COULD. >> BUT HERE'S THE PROBLEM. ANY VEHICLE I MEAN IT'S UNFORTUNATE, BUT ANY VEHICLE THAT WANTED TO GET UP ON THE SIDEWALKS, EVEN IF YOU HAD BOLLARDS, IF THEY'RE IN THE SQUARE AREA, CAN JUST GO UP, JUMP THE CURB AND GO LIKE, SAY THEY'RE PARKED AT AT A BUSINESS OR AT THE COURTHOUSE. THEY COULD JUMP THE CURB AND GO INTO IT. AND I CERTAINLY DON'T WANT TO ANNOUNCE ALL THIS, BUT BOLLARDS WILL HELP. IT CERTAINLY WILL HELP IF YOU HAD THOSE BALLERS THAT WOULD POP UP. BUT I'LL ALSO SAY THEY'RE NOT AS RELIABLE, BECAUSE IF YOU LOOK WHAT HAPPENED IN NEW ORLEANS, THEY WERE HAVING TO MAINTAIN THEM BECAUSE THEY HAVE STUFF GETS DOWN IN THEM AND THEN THEY CAN'T POP UP. AND SO I WAS LOOKING AT FRANK, BUT I DON'T THINK YOU CAN JUST COUNT ON BOLLARDS. YOU'RE ALWAYS GOING TO NEED SOME OFFICERS OKAY. YEAH. ALWAYS I

AND ESPECIALLY IF IT'S AN EVENT WHERE ALCOHOL IS INVOLVED. >> IT WAS TOP OF MIND GIVEN WHAT

HAPPENED IN EUROPE THE OTHER DAY. >> YES. AND IT'S UNFORTUNATELY

HAPPENING IN MORE AND MORE. >> OKAY. CHRISTINE, THANK YOU VERY MUCH FOR THE WORK ON THIS.

APPRECIATE IT. WONDERFUL JOB. THANK YOU. >> THANK YOU.

>> ANY REPRESENTATIVE DISTRICT FOR. >> IF EVENTS USE LESS AND LESS HOT PHONES BECAUSE IN FACT THEY DO NOT PROVIDE HEADS IN BEDS LIKE THE PRESUMPTION IS WHAT

HAPPENS TO THAT UNUSED MONEY. >> SO WE STILL CONTINUE TO HAVE THOSE FUNDS IN RESERVE. OR IT CAN GO TO ANOTHER ORGANIZATION THAT ACTUALLY SHOWS THAT THEY CAN USE THOSE FUNDS FOR THEIR

EVENTS. BUT WE DO CONTINUE TO HAVE THOSE FUNDS. >> OKAY. BUT IF WE HAD A GENERAL DECREASE IN IN DRAWING OUT HOT FUNDS, AND IF IT TURNED OUT TO BE 50% LESS THAN WHAT WE THOUGHT IT WAS GOING TO BE, WHAT WOULD HAPPEN TO THAT, TO THAT OTHER 50% THAT WAS UNUSED? WOULD IT

EVER GO INTO GENERAL FUNDS? >> NO, NO. >> OKAY, OKAY.

>> ANY OTHER QUESTIONS? SO LOOKING FOR DIRECTION, RIGHT. I HADN'T HEARD ANYONE THAT SAID THERE. MAYBE I MISSED IT BUT NEED DIRECTION AS FAR AS APPROVAL OF THE FEES.

REPRESENTATIVE DISTRICT FIVE APPROVAL. >> ANYONE ELSE? SO APPROVE.

>> ALL RIGHT, IT'S ONE. GOT IT. ANYONE ELSE? OKAY, REPRESENTATIVE DISTRICT TWO AS WELL. OKAY. THANK YOU. SO MY QUESTION IS ARE THESE. THANK YOU, STAFF, FOR THE ANSWERS TO THE QUESTIONS THAT I SUBMITTED. AND MY RESPONSE IS THANKS TO LET'S SEGREGATE IT THIS WAY. SO THINGS TO MOVE FORWARD WITH. I'D LIKE TO ASK STAFF TO LOOK FORWARD LOOK TOWARDS OR CONSIDER THAT RFP THAT IT MENTIONED FOR THE FIRE DEPARTMENT TO BEGIN TO HAVE A THIRD PARTY MECHANISM TO PAY THEM DIRECTLY FOR THOSE THAT DID, OBVIOUSLY DIDN'T SEE THE QUESTION. MY QUESTION WAS, HOW DO WE COORDINATE AND CONNECT PEOPLE WITH THOSE DEPARTMENTS DIRECTLY SO THAT THE CITY'S NOT SITTING IN THE MIDDLE? AND THE ANSWER WAS POLICE HAVE THE POLICE DEPARTMENT HAS A MECHANISM TO DO THAT. FIRE DEPARTMENT DOES NOT. AND BUT CHIEF, DO YOU HAVE ANY IF YOU HAVE THOUGHTS ON THAT, CORRECT ME WHERE I'M WRONG OR AND GIVE ME INSIGHT IF THAT'S A BAD

THING. BUT ABSENT THAT I THINK IT'S A GOOD THING. >> CONTAGIOUS FIRE CHIEF. NOW, I DIDN'T SEE THE QUESTION. I'M SORRY, BUT ON THAT BUT KIND OF KNOWING WHAT PD DOES, I THINK.

CORRECT ME, TONY, IS THAT A MEET CONFER AGREEMENT IN WHICH YOU'RE RUNNING THAT THIRD PARTY AS FAR

AS HIRING? >> NO, IT'S. >> AN OFF-DUTY SOLUTIONS IS.

>> A YOU GOT TO COME UP TO. >> THE VENDOR. >> OKAY. I THINK THE ANSWER WAS NO LIKE THAT. SO YES, I'D BE OPEN TO THAT. AND ONE THING ALSO, WHILE WE'RE UP HERE, WE ALSO TALK WITH THESE EVENT COORDINATORS. AND IF IT'S SMALLER EVENTS WE ACTUALLY PROPOSE THEY DON'T ACTUALLY USE THE FIRE DEPARTMENT. SO AS LONG AS THEY HAVE MEDICAL STAFF TRAINED ON SITE, OFF DUTY NURSES OR ANYTHING, WE SAY WE'RE TOTALLY FINE WITH THAT AS WELL.

SO WE TRY TO LOOK AT COST SAVINGS MEASURES ALSO. >> EXCELLENT. THANK YOU FOR THAT. AND AS AS THAT COMES AROUND, IF THERE'S PAIN POINTS THERE, LET ME KNOW. THEN I ALSO.

I WANT TO NOTE IT'S IMPORTANT TO NOTE THAT THE I'LL COME BACK TO THE OTHER THING, BUT IT'S IMPORTANT TO NOTE THE CITY HAS TAKEN THESE SAME STEPS. AND I THINK IT WOULD BE IMPORTANT AS YOU TALK TO PEOPLE TO BULLET POINT THE CHANGES WE'VE MADE. SO FOR EXAMPLE, AGAIN, OUTSIDE LOOKING IN FROM THE INSIDE LOOKING OUT BETTER SAID PEOPLE MAY NOT KNOW FOR THE AMERICAN IDOL PARADE, WE USE SENIOR STAFF AND VOLUNTEERS AND SHORTEN THE ROUTE. WE DID EXACTLY WHAT WE'RE ASKING PEOPLE TO DO. SO WE HAVE SKIN IN THE GAME VERY MUCH SO. WE DID ALL THOSE THINGS. THEY'RE LIKE, HEY, CAN WE MAKE THE ROUTE LONGER? WE'RE LIKE, NOPE, CAN WE? AND WE HAD VOLUNTEERS FROM THE CITIZENS PATROL AND ALL THOSE THINGS THAT KIND OF HELPED US MAKE THAT POSSIBLE. AND WE

[01:50:02]

STAYED OFF MAJOR STREETS. AND SO EVERYTHING WE'RE ASKING PEOPLE TO DO, WE'RE DOING IN PRACTICE.

AND I THINK THAT'S IMPORTANT FROM A LEADERSHIP STANDPOINT. AND THEN ALSO, SAME THING LOOKING BACKWARDS TO THE 31 DAYS OF HALLOWEEN LAST YEAR. SO WE DID THE STATE OF THE CITY, THE 31 DAYS OF HALLOWEEN KICKOFF ALL AT ONCE, SO THAT WE CAN CONSOLIDATE SO THAT WE CAN BRING PEOPLE IN TOGETHER ONE FATAL SWOOP VERSUS HAVING THESE MULTIPLE EVENTS AND THAT SORT OF THING. SO WE'RE DOING. EXACTLY. AND THANK YOU, CITY MANAGER AND STAFF. WE'RE DOING EXACTLY WHAT WE'RE ASKING PEOPLE TO DO. SO WE'RE NOT SITTING ON HIGH GIVING ORDERS DOWN LOW. WE'RE DOING THE SAME THING AND GOING THROUGH THOSE SAME PROCESSES. AND SO THEN I DON'T KNOW THE ANSWER.

ANOTHER ANSWER I'D LOVE TO KNOW AFTER THE FACT IS I KNOW STAFF'S LOOKED AT IT, BUT JUST WHAT WHAT WOULD IT TAKE IF THE COUNCIL DECIDED TO HAVE LIKE AN RFP OR A VENDOR LIST FOR SECURITY STANDPOINT TO, TO CHIEF'S POINT TO HAVE A VENDOR LIST OF PEOPLE THAT PEOPLE CAN PULL FROM. AND I CALL BACK TO TWO THINGS. I CALL BACK TO FRY STREET FAIR TWO YEARS AGO WHEN THEY HIRED A SECURITY TEAM THAT I THOUGHT DID GOOD WORK, AND THEN EVEN THIS YEAR, SHOUT OUT TO FRY STREET FAIR ORGANIZERS. THEY HIRED PEOPLE FROM OUR DAILY BREAD TO WORK THE EVENT. SO THAT'S ENTRY.

THAT'S CLEANUP. THAT'S A NUMBER OF DIFFERENT THINGS. AND I THINK THAT'S FANTASTIC TO AND WHATEVER WE CAN DO TO INSPIRE MORE OF THAT, EITHER PEOPLE KNOWING THESE RESOURCES ARE AVAILABLE.

SO WHAT DOES THAT LOOK LIKE FROM. BECAUSE I KNOW WE CAN'T TAKE A POSITION, BUT I WANT TO

TRY TO GUIDE PEOPLE, IF YOU WILL. >> A COUPLE THINGS. SO POLICE IS ACTIVELY WORKING ON THAT. THAT IS ONE OF THE PROCESSES WE'RE EVALUATING AS WE GO THROUGH ALL OF THIS. WE HAVE IN OUR SPECIAL EVENT ORDINANCE, THERE IS A REQUIREMENT THAT IT IS A PEACE OFFICER TO DIRECT TRAFFIC. SO PARADES AND THINGS LIKE THAT WILL STILL REQUIRE AT LEAST OUR ORDINANCE RIGHT NOW REQUIRES THAT IT'S A POLICE OFFICER. AS FAR AS OTHER EVENTS OF TALKING ABOUT BEING ABLE TO UTILIZE ANOTHER STAFFING, WE'RE LOOKING AT THE POLICE DEPARTMENT WANT TO DO AN RFP WITH THAT AND MANAGE SECURITY, BECAUSE WE HAVE EVENTS LIKE WHERE A POLICE OFFICER MAY BE NEEDED TO IF THEY'RE GOING TO PUT ALL THEIR EQUIPMENT ON THE PARK, THEY NEED SOMEONE WATCHING IT OVERNIGHT. WHERE IN THE PAST WE'VE UTILIZED A POLICE OFFICER, THAT WOULD BE A GREAT OPPORTUNITY TO USE A SECURITY OFFICER INSTEAD. SO WE ARE LOOKING AT WHAT CAN WE DO, WHAT IMPACT DOES THAT HAVE TO THE SPECIAL EVENT ORDINANCE THAT WE NEED TO BRING FORWARD FOR CHANGE? AND THEN WHAT OPTIONS CAN WE OFFER EVENT ORGANIZERS AS WE'RE EVALUATING WHAT THEIR NEED IS? IS THIS A BEST FIT FOR A POLICE OFFICER OR A SECURITY OFFICER?

>> GOT IT. OKAY. THANK YOU. AND THEN ANOTHER THING THAT I WOULD LIKE TO EVALUATE AS THIS GOES FORWARD, OR JUST TO HELP ME EVALUATE BETTER SAID, IS A SALES TAX NUMBER THAT MOVES THE NEEDLE RIGHT. WHAT IS THE NUMBER OF SALES TAX THAT REALLY HAS AN IMPACT. OR WE CAN SAY, HEY, THIS IS I'LL USE THE EXAMPLE OF THE TAX RATE. RIGHT? 1.3 MILLION EQUALS $0.01. SO THAT THAT KIND OF GIVES YOU A GUIDELINE TO SAY. SO WHEN I'M EVALUATING SALES TAX AND SOMEONE SAYS WE'RE GOING TO BRING YOU $5 IN SALES TAX OVER THE NEXT TWO DAYS, IS THAT I KNOW THE ANSWER TO THAT. BUT IS THAT GOOD, BAD OR INDIFFERENT? RIGHT. SO JUST HOW ARE WE MEASURING THAT. AND I WOULD USE THE HIGH END TO, TO EVALUATE WHAT WE EXPERIENCED LAST YEAR DURING THE 31 DAYS OF HALLOWEEN AND WHATEVER THE LOW END OF THAT IS, AND MAYBE SOMETHING IN THE MIDDLE TO HELP ME KIND OF GAUGE WHERE WE ARE, ESPECIALLY IF SOMEONE COMES IN AND SAYS, HEY, I DON'T HAVE ENOUGH. WE DIDN'T HAVE ENOUGH SPONSORSHIPS. WE NEED SUPPLEMENTALS, OKAY, NOW WE CAN WE CAN JUDGE THAT BASED ON A NUMBER VERSUS A PERSONAL PREFERENCE. AND THEN I, LISTENING TO THE DISCUSSION, I DON'T KNOW HOW THIS SHAPES UP, BUT I'D LIKE TO SEE SOMETHING WHERE WE'RE ADVERTISING EACH OTHER. SO I THINK IF THERE'S IF THERE'S CITY PARTICIPATION, THERE SHOULD BE A BOOTH FOR. SO AT THE BLACK FILM FESTIVAL, THERE SHOULD BE A BOOTH FOR THIN LINE OR FOR JAZZ FEST OR ALL THOSE THINGS. AND MAYBE IT'S ONE TABLE THAT HAS A LIST OF EVERYTHING, BUT I JUST THINK IF THE CITY IS IN RIGHT, PART OF THAT IS WE MARKET OTHER THINGS HERE SOME KIND OF WAY. NOW, AGAIN, I KNOW THERE'S A LOT TO BE THERE AND ALL THE THINGS THAT GO WITH WORKING TOGETHER, BUT I THINK THERE NEEDS TO BE SOMETHING TO SAY. AND I KNOW DISCOVERY PROBABLY DISCOVERED SOME OF THOSE THINGS, BUT BUT I STILL THINK THERE'S NOTHING LIKE A FOUNDER OR A ENTITY OR A VOLUNTEER IN THAT ORGANIZATION AT LEAST HAVING AN OPPORTUNITY TO BE THERE. BLESS YOU AT AT NO

COST. >> I KNOW I CAN SPEAK TO THE CONVENTION AND VISITORS BUREAU DISCOVERED DENTON HAS BEEN WORKING WITH THESE EVENTS TO TALK ABOUT HOW CAN WE HELP

[01:55:01]

MARKET YOU? HOW CAN WE PULL YOU IN OUR LIST OF EVENTS? HOTEL OWNERS HAVE TALKED ABOUT HAVING THIS INFORMATION. SO AS THEIR GUESTS COME IN, THEY CAN SAY, THIS IS WHAT'S GOING ON THIS WEEKEND. I THINK JEFF PRINCE AT THE EMBASSY HAS BEEN LIKE, WELL, WE'LL HAVE THIS DISPLAY FOR BLACK FILM FESTIVAL ON, SO OUR GUESTS CAN BE PART OF THAT. WE DO IN OUR AGREEMENT HAVE THAT EACH EVENT SIGNS IN THERE WHERE THEY'RE LISTING THE CITY AS A SPONSOR. AND SO WE DO HAVE SOME CROSS MARKETING GOING ON. AND IN THE PAST, I KNOW THAT OUR MARKETING DEPARTMENT, IF THEY PUT FORWARD A VIDEO OR PUT SOMETHING TOGETHER, WE SHARE IT ON OUR SOCIAL MEDIA, BUT CERTAINLY CAN WORK ON THOSE SYNERGIES OF WHERE WE'RE PROMOTING ALL OF DENTON

TOGETHER. >> YEAH, I JUST THINK, YEAH, I THINK IF IT'S A DENTON ORGANIZATION AND DENTON SPONSORING, THERE NEEDS TO BE SOME ACCESS. THEY DON'T HAVE TO TAKE IT. THEY CAN DEFER TO THOSE GENERAL GROUPS THAT DO THAT, OR IF THEY WANT TO BE THERE IN PERSON, I THINK THEY SHOULD HAVE THAT OPPORTUNITY BASED ON THE FACT THAT WE ARE AT THE TABLE AS WELL. JUST AND AGAIN, I DON'T THAT'S NOT A WELL BAKED IDEA, BUT IT'S A IT'S A THOUGHT.

>> WE'RE WORKING ON. I KNOW THE CVB IS WORKING HAND IN HAND WITH OUR PARK STAFF TO TALK ABOUT HOW DO WE KIND OF GROUP SOME OF THESE THINGS TOGETHER TO MAKE THEM MORE OF THOSE TOURISM DRAWS DESTINATIONS. SO THINKING HOW YOU CAN COUPLE THE EVENTS TOGETHER, HOW YOU CAN MAKE IT A LONG WEEKEND, HOW WE CAN MARKET EACH OTHER, THEY'RE ALL GOING THAT DIRECTION AND THINKING ON

HOW WE CAN IMPROVE THIS. >> YEAH, EXCELLENT. AND THEN LASTLY, I DO THINK WHATEVER WE CAN CRAFT AROUND SHOPPING LOCAL, RIGHT? I MEAN, A FOOD TRUCK COMES IN FROM WHEREVER. AND WE'RE GETTING I MEAN, NO ONE'S SHOWING ME A NUMBER OF HOW MUCH MONEY WE'RE GETTING. SALES TAX FROM, FROM FOOD TRUCK FROM FILL IN THE BLANK CITY THAT JUST POPS INTO DENTON TO WORK AN EVENT.

AND I GET IT. THEY'RE PAYING SOME KIND OF BOOTH FEE AND ALL THOSE THINGS, AND I'M NOT DISCOURAGING THAT. BUT I AM SAYING THERE NEEDS TO BE SOME EVALUATION OF HOW WE CAN PRIORITIZE OUR LOCAL BUSINESSES, OUR LOCAL BRICK AND MORTAR, FIRST AND FOREMOST, FOR ME. BUT THEN BEYOND THAT, ALSO OUR FOOD TRUCKS, BECAUSE WE HAVE GREAT FOOD TRUCKS. I MEAN, HECK, I'M AT THE FLYING TOMATO JUST AS MUCH AS ANYONE ELSE. I PROBABLY SHOULDN'T BE, BUT IT'S FANTASTIC. SO IT'S JUST THOSE, YOU KNOW, THERE'S GREAT PEOPLE IN BOTH INDUSTRIES, BUT FIRST AND FOREMOST, THEY'RE HERE, RIGHT? VERSUS SOMEONE THAT JUST ROLLS INTO TOWN, DOES THEIR THING AND THEN GOES TO THE NEXT TOWN. THAT'S VALUABLE TOO. I JUST THINK IT'S A STEP BELOW

LOCAL BUSINESSES. >> MAYOR, YOU'RE ABSOLUTELY RIGHT. AND I THINK THAT'S WHY AND THIS IS KIND OF NEWS TO THEM, BUT I DO I AM GOING TO ASK THAT MARKETING COMMUNICATIONS, PARKS AND REC GRANTS AND UNDER CHRISTINE WHETHER OR NOT BUT THAT THEY HAVE A MEETING THAT LOOKS AT NOT JUST HOW TO HELP THESE GROUPS, BUT ALSO TALK ABOUT, I MEAN, I DON'T KNOW IF I DON'T KNOW IF YOU READ IT OR NOT. WE WON TWO NATIONAL AWARDS JUST RECENTLY IN MARKETING COMMUNICATION AND AGAINST BIG CITIES ACROSS THE COUNTRY. SO THE BOTTOM LINE IS WE ARE THE EXPERTS WHEN ITF AND WHEN IT COG A SPECIAL EVENT AND THOSE KINDS OF THINGS. SO ONE THING WE CAN HELP THESE GROUPS LOOK AT. WHAT IS YOUR MARKETING PLAN? DO YOU HAVE ONE, YOUR SPONSORSHIP PLAN? DO YOU HAVE ONE? HERE'S HOW TO DEVELOP IT. HERE'S WHO YOU FOCUS ON. HERE'S WHAT YOU WHO YOU FOCUS ON, HOW YOU FOCUS ON IT. WE NEED TO COME UP WITH A TEMPLATE THAT WE CAN WORK WITH GRANTS AND ALL THESE STAFF, THEN SIT DOWN WITH THESE GROUPS TO HELP THEM TO SAY, HERE'S HOW WE CAN HELP YOU. NOW, WE'RE NOT GOING TO DO IT FOR YOU, BUT YOU PUT THAT TOGETHER, YOU PUT YOUR VIDEO TOGETHER. WE CAN SHOW YOU HOW TO OR WHERE TO GO TO GET IT, AND THEN WE CAN PUT IT ON A, ON A LOOP. WE CAN RUN THOSE THINGS. AND CHRISTINE'S IDEA OF PUTTING TWO EVENTS TOGETHER WHERE YOU GET MORE EVENTS, BUT THEN TALK ABOUT THE BIGGER DEAL OF IF YOU'RE IN THE CITY, BUY LOCAL, GO LOKAL, SEE IF THEY'LL SUPPORT. YOU MAY NOT BE FINANCIALLY WITH MONEY, BUT IT MAY BE OTHER THINGS THEY CAN SUPPORT. SO I THINK THAT'S ALL YOU'RE WHAT YOU'RE SAYING. AND I THINK THAT'S SOMETHING WE CAN DO TO HELP THESE EVENTS REALLY EITHER GROW AND GET BIGGER, OR THERE MAY BE SOME THAT JUST SAY, YOU KNOW, WE CAN'T DO IT ANYMORE BECAUSE WE JUST DON'T HAVE THE

RESOURCES, BUT WE NEED TO TRY. >> OKAY. >> THANK YOU VERY MUCH.

>> I REALLY LIKE THAT IDEA OF WHERE WHERE ONE GROUP COULD GO TO ANOTHER GROUP'S EVENT AND

HAVE A BOOTH AND SELL OR BAD ANALOGY. I LIKE THE IDEA. >> THANK YOU, THANK YOU. OKAY, YOU HAVE DIRECTION, BUT HOLD ON JUST A SECOND. BUT WAIT, THERE'S MORE. THANK YOU VERY MUCH.

CONGRATULATIONS ON YOUR FIRST PRESENTATION. >> THANK YOU.

>> YES. AND SO WE HAVE AN ELEPHANT FOR YOU TO REMEMBER. THAT'S RIGHT. YES. SO HOW LONG

HAVE YOU BEEN WITH THE CITY? >> ABOUT EIGHT MONTHS. OUTSTANDING.

>> YEAH. GOOD, GOOD. WELL THANK YOU. THANK YOU TO OUR BENEFIT. APPRECIATE YOU.

>> BEING HERE. >> THANK YOU SIR. THANK YOU VERY MUCH. ALL RIGHT. HERE WE GO.

WE'LL GET. >> A PICTURE. >> OH YEAH. FOR. YEAH. ANOTHER

ONE WE STOLE FROM FORT WORTH. >> THANK YOU. YEAH. SHOUT OUT TO MADDIE PARKER.

>> YES SHE IS. THANK YOU. ALL RIGHT. THANK YOU. >> THANK YOU VERY MUCH.

[02:00:03]

>> ALL RIGHT. >> OKAY. SO WE WILL GO STRAIGHT INTO OUR CLOSED AND THE CITY

[1. Closed Meeting:]

COUNCIL WILL NOW AT 5:02 P.M, CONVENE IN CLOSED MEETING TO DELIBERATE THE CLOSED MEETING ITEM SET FORTH ON THE AGENDA, WHICH INCLUDE THE FOLLOWING ITEM A ID 25859. DELIBERATIONS REGARDING CERTAIN PUBLIC POWER UTILITIES. COMPETITIVE MATTERS UNDER TEXAS GOVERNMENT CODE SECTION 551.086 AND ITEM B, ID 25909. DELIBERATION REGARDING ECONOMIC DEVELOPMENT UNDER TEXAS GOVERNMENT CODE SECTION 551.087. WE'LL SET THE ROOM AND THEN WE'LL GO RIGHT INTO IT SO THAT WE CAN

[AFTER DETERMINING THAT A QUORUM IS PRESENT, THE REGULAR MEETING OF THE CITY OF DENTON CITY COUNCIL WILL CONVENE AT 6:30 P.M. IN THE COUNCIL CHAMBERS AT CITY HALL, 215 E. MCKINNEY STREET, DENTON, TEXAS AT WHICH THE FOLLOWING ITEMS WILL BE CONSIDERED:]

GOOD EVENING AND WELCOME TO THIS MEETING OF THE DENTON CITY COUNCIL. IT IS 630, SO WE'LL CALL THE MEETING BACK TO ORDER. WE DO HAVE A QUORUM. FIRST THING ON THE AGENDA PLEDGES TO THE UNITED STATES AND TEXAS FLAG. PLEASE STAND WITH ME IF YOU'RE ABLE.

>> PLEDGE ALLEGIANCE TO THE FLAG. FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

>> HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE. >> TEXAS.

>> ONE STATE UNDER GOD, ONE AND INDIVISIBLE. ALL RIGHT. AND THEN, IF WE COULD PLAY THE VIDEO

FOR ADDRESSING COUNCIL. >> THE DENTON CITY COUNCIL HAS ADOPTED RULES OF PROCEDURE, INCLUDING A CODE OF CONDUCT THAT APPLIES TO THE PUBLIC AS WELL AS COUNCIL MEMBERS. THESE RULES WERE ENACTED TO PROMOTE AN ORDERLY PROCESS AND TO PRESERVE DECORUM. SPEAKERS WILL HAVE FOUR MINUTES TO GIVE A SCHEDULED REPORT AND FOUR MINUTES TO GIVE AN OPEN MIC REPORT. A BELL WILL RING WHEN TIME HAS EXPIRED. IF THE REMARKS ARE NOT CONCLUDED BY THAT TIME, THE SPEAKER WILL BE ASKED TO STOP SPEAKING. IF THE SPEAKER DOES NOT CEASE AND A SECOND REQUEST IS MADE, THE MAYOR MAY REQUEST TO HAVE THE SPEAKER REMOVED FROM THE CHAMBER. SPEAKERS SHOULD NOT APPROACH THE DAIS. IF A SPEAKER HAS MATERIALS FOR THE COUNCIL, PLEASE NOTIFY THE CITY SECRETARY IN ADVANCE FOR SCHEDULED REPORTS. THE COUNCIL MAY INITIATE DISCUSSION OR ASK QUESTIONS FOR NONSCHEDULED OPEN MIC REPORTS. THE COUNCIL MAY LISTEN, HOWEVER, BECAUSE NO NOTICE OF THE SUBJECT OF THE OPEN MIC REPORT HAS BEEN PROVIDED TO THE PUBLIC IN ADVANCE. THE TEXAS OPEN MEETINGS ACT PROHIBITS DISCUSSION OR DECISION BY THE COUNCIL ON NONSCHEDULED ITEMS. AS A RESULT, THE COUNCIL MAY ONLY PROCEED AS FOLLOWS ON NONSCHEDULED ITEMS PROPOSED TO PLACE THE ITEM ON A FUTURE AGENDA. MAKE A STATEMENT OF FACTUAL POLICY OR A RECITATION OF EXISTING POLICY. SPEAKERS ARE ASKED TO DIRECT ALL REMARKS AND QUESTIONS TO THE COUNCIL AS A WHOLE, AND NOT TO ANY INDIVIDUAL MEMBER. PLEASE REFRAIN FROM MAKING ABUSIVE, PERSONAL, IMPERTINENT, PROFANE, OR SLANDEROUS REMARKS. ANYONE WHO VIOLATES THE COUNCIL RULES OF PROCEDURE MAY BE IMMEDIATELY REMOVED FROM THE CHAMBER. THANK YOU IN ADVANCE. COPIES OF THE

RULES OF PROCEDURE ARE AVAILABLE FROM THE CITY SECRETARY. >> OKAY. AND THE FIRST SPEAKER,

[2. PRESENTATIONS FROM MEMBERS OF THE PUBLIC]

MISS BARBARA KUZMA. HELLO. IF YOU CAN COME DOWN AND GIVE YOUR NAME, YOU'LL HAVE FOUR MINUTES.

>> THANK YOU SIR. >> GOOD EVENING, MR. MAYOR. COUNCIL MEMBERS, AS SAID, MY NAME IS BARBARA KUZMA. MY HUSBAND AND I MOVED TO TEXAS THREE YEARS AGO FROM NORTHERN ARIZONA FOR FAMILY AND MEDICAL REASONS. MY CONCERN ABOUT MOVING WAS YOUR SEVERE WEATHER AND TORNADOES IN PARTICULAR. I'M HERE TO TALK TONIGHT TO YOU ABOUT A WEDGE SHAPED AREA WITHIN THE DENTON CITY LIMITS, SURROUNDED BY FORT WORTH, SURROUNDING FORT WORTH DRIVE COUNTRY CLUB AND DOWN TO BRUSH CREEK ROAD. AND YOU'LL SEE THAT ON YOUR MAP. AND LET ME GET THIS ONE JUST A LITTLE STRAIGHTER. THIS AREA INCLUDES CENTRAL VILLAGE ESTATES, WHERE I LIVE.

BENT CREEK ESTATES, RYAN MEADOWS COUNTRY CLUB TERRACE AND THE HILLS OF ARGYLL. SUBDIVISIONS INSIDE THE DENTON CITY LIMITS. THERE ARE ALSO TWO SCHOOLS, RYAN ELEMENTARY AND DENTON CLASSICAL ACADEMY, PLUS INDIVIDUAL PROPERTIES AND A FEW APARTMENT BUILDINGS. THE PROBLEM IS WE HAVE NO OUTDOOR WARNING SYSTEM IN THIS WHOLE AREA. TORNADO SIRENS. I MADE A ROUGH COUNT OFF

[02:05:03]

OF GOOGLE USING THEIR SATELLITE VIEW, AND COUNTED APPROXIMATELY 1850 HOMES WITHIN WHAT I CALL THE DEAD ZONE. DEAD BECAUSE AHEAD OF A TORNADO, WE WOULD HAVE DEAD SILENCE. BECAUSE THERE IS NO. TORNADO SIREN IN OUR AREA AND THERE ARE MORE HOMES UNDER CONSTRUCTION ALL THE TIME. THIS AREA IS STILL GROWING. WITH AN AVERAGE OF TWO AND A HALF PEOPLE PER HOUSE THAT REALTORS ESTIMATE, IT WOULD BE 4600 PEOPLE HERE IN OUR AREA THAT DO NOT HAVE THE BENEFIT OF A TORNADO SIREN. THIS AREA ALSO INCLUDES THREE LARGE MOBILE HOME PARKS WITH A TOTAL OF 330 MOBILE HOMES. THESE ARE OUR MOST VULNERABLE CITIZENS IN THE CASE OF A TORNADO. AND I CALLED THE MANAGEMENT OF THE THREE PARKS TO ASK WHAT THEIR PROCEDURES WERE. THEY SAID THEY DO NOT HAVE A, A, A SAFE SHELTER, AND THEY HAVE NO PROTOCOL TO ALERT OR PROTECT THEIR RESIDENTS IN THE CASE OF A TORNADO. THE ARGYLE EF2 TORNADO OF 2011 WENT DIRECTLY THROUGH MY NEIGHBORHOOD, DAMAGING MANY ROOFS AND TAKING OUT FENCES. NO ONE WAS HURT, BUT THAT JUST SHOWS THAT THE THREAT, THE RISK IS THERE AND WE WOULD BENEFIT FROM A TORNADO SIREN ALERT. DENTON IS A FINE SERVICE THAT I GET RECOMMENDED A LOT, BUT IT DOESN'T ALLOW YOU TO SELECT ALERTS AT THE MIDDLE OF THE NIGHT. YOU HAVE TO TAKE THEM ALL OR NONE. I DON'T WANT TO BE HAVE MY SLEEP INTERRUPTED FOR A DENSE FOG ADVISORY, BUT I WOULD LIKE IT FOR A TORNADO WARNING FOR SURE. WHEN QUESTIONED, THE THEY SUGGESTED I BUY A NOAA WEATHER RADIO, WHICH I DID, BUT FOR EVERY HOME IN THE DEAD ZONE IT WOULD COST $65,000 TO BUY EACH OF THOSE HOMES. A NO RADIO AT THE PRICE. I GOT $35 AND SOME CAN'T, AND SOME DON'T WANT TO AFFORD THAT EXPENSE. I WAS TOLD THAT WE WOULD HAVE TO WAIT TO GET THE TORNADO SIRENS. THEY DID A STUDY THAT YES, INDEED, WE NEED ONE. BUT THERE'S NO IT'S A MONETARY CONSTRAINT. WE NEED MONEY ALLOTTED FOR THIS NECESSITY. IT'S POTENTIALLY LIFE

SAVING. IT'S A SYSTEM THAT WE NEED NOW. THANK YOU VERY MUCH. >> THANK YOU. APPRECIATE YOUR TIME. AND NEXT SPEAKER IS TRACY DUCKWORTH. IF YOU CAN COME DOWN AND GIVE YOUR NAME, YOU'LL HAVE

FOUR MINUTES. >> MY NAME IS TRACY DUCKWORTH. THIS IS MY 10TH APPEARANCE HERE.

10TH. IT'S NOT FUNNY. 10TH APPEARANCE HERE. I STARTED DOING THIS. JESSE JUST ASKED ME, WAS I OKAY? NO, I'M NOT OKAY. I DON'T WANT TO BE DOING THIS ANYMORE. I'M TIRED OF COMING HERE AND BEGGING, BEGGING, BEGGING, BEGGING FOR MY PEOPLE TO LIVE AND GET JUSTICE. WE'RE TREATED LIKE CRAP AND Y'ALL DON'T CARE. I STARTED COMING HERE TWO YEARS AGO TO ADVOCATE FOR MY PEOPLE.

BECAUSE I REALIZED THAT Y'ALL DON'T GIVE A DAMN ABOUT HOMELESS PEOPLE OR OUR LIVES, OR HOW WE'RE TREATED BY ORGANIZATIONS. THEN THE MORE I GOT INVOLVED, THE MORE I REALIZED THAT YOU DON'T CARE ABOUT ANYBODY. ANY RESIDENTS, YOU DON'T CARE ABOUT THE HOMELESS PEOPLE, YOU DON'T CARE ABOUT THE GAY PEOPLE. YOU DON'T CARE ABOUT ANYBODY. EVERYTHING THAT WE WANT TO TALK ABOUT THE MOST IS WHAT YOU REFUSE TO TALK ABOUT. WHEN KIMBERLY POLLOCK DIED BECAUSE SHE DIDN'T GET A BED IN JANUARY, IT WAS 38 DEGREES. WHEN THAT SEVEN YEAR OLD CRIPPLED LADY DIED IN A PARK IN MACK PARK, NOBODY EVEN WANTED TO MENTION HER NAME. THAT'S WHY I STARTED SAYING IT REPEATEDLY. THAT IS NOT OKAY. IT SAYS IN THE AUDIT OF THE HOMELESS REPORT THAT THE CITY OF DENTON HAS HISTORICALLY, WHICH MEANS NEVER RIGHT. HISTORICALLY NOT ASKED FOR INPUT FROM RESIDENTS OF THE COMMUNITY SHELTER. NOT ONLY HAVE Y'ALL NOT HAVE HISTORICALLY NOT ASKED FOR

[02:10:02]

INPUT FROM THEM, YOU REFUSE TO HEAR US AND IGNORE WHAT WE COME TO YOU WITH. THAT IS NOT OKAY.

THEN YOU SIT UP THERE AND ACT LIKE YOU CARE ABOUT US AND YOU ARE FOR US. YOU'RE NOT. I FOUND OUT SOMETHING ALSO WHEN I WAS ON SERVING ON NICK STEVENS CAMPAIGN RECENTLY. NOBODY. NOBODY.

NOBODY. PEOPLE. I MEAN, REGULAR PEOPLE IN HOMES. NOBODY KNEW WHO THEIR COUNCIL MEMBER WAS.

NOBODY. NOT ONE PERSON, I ASKED. THAT'S YOUR FAULT. THE ONLY TIME YOU KNOCK ON ANYBODY'S DOOR IS WHEN YOU'RE LYING TO GET ELECTED. OH, AND WHILE I'M HERE, I DON'T WANT TO DISRESPECT ANYBODY IN THE GAY COMMUNITY BY MISSING ANY LETTERS. BUT I DO WANT TO SAY THAT THE LGBTQ. AND I KNOW I'M LEAVING OFF LETTERS. PLEASE FORGIVE ME. THAT COMMUNITY IS THE MOST STAND UP COMMUNITY WHEN IT COMES TO HELPING THE HOMELESS AND HELPING PEOPLE IN NEED. THEY CONTRIBUTE MORE TO THE COMMUNITY THAN Y'ALL EVER THOUGHT ABOUT OR IGNORED. THIS IS JUST ONE MORE GROUP OF PEOPLE THAT YOU DON'T CARE ABOUT. LIKE OPENLY. Y'ALL ARE NOT EVEN TRYING TO HIDE IT ANYMORE. Y'ALL DON'T EVEN PRETEND OR PUT ON A SHOW LIKE YOU CARE. YOU JUST BLATANTLY DON'T CARE. KIMBERLY POLLOCK DIED IN JANUARY. HALF THE CITY CAME IN HERE AND DEMANDED ACTION AND DEMANDED AND BEGGED FOR OVERNIGHT 24 HOUR COOLING AND WARMING CENTERS. Y'ALL PUT THAT OFF TILL SEPTEMBER. IT'S 100 DEGREES OUTSIDE. ITS 93 AT 9:00 AT NIGHT. THAT'S WHAT WE WANT TO TALK ABOUT. SO THAT'S WHAT Y'ALL REFUSE TO TALK ABOUT. AND THAT'S NOT OKAY. THANK YOU.

>> OKAY. THANK YOU. NEXT SPEAKER IS BARBARA OWENS. COME DOWN AND GIVE YOUR NAME AND YOU'LL HAVE

FOUR MINUTES. >> HOW ARE Y'ALL DOING? I'M BARBARA OWENS, AND I THANK YOU FOR THE OPPORTUNITY TO SPEAK WITH YOU GUYS. MAY I PROCEED? OKAY, I HAVE THE VIDEO UP HERE, AND HE JUST SHOWED ME, SO I JUST PUSHED THE BUTTON AND IT SHOULD BE SHOWING. THAT'S A DUCK.

THAT'S OVER BY GUYER HIGH SCHOOL. UP ON MIRANDA. AS ON MY WAY TO WORK. YOU KNOW, IT'S COOL TO SEE THE KIDS WALKING TO SCHOOL, AND IT'S. IT'S COOL TO SEE PEOPLE STOP, BUT UNFORTUNATELY, NOT EVERYONE STOP. AND SO THIS IS WHAT HAPPENED WHEN YOU DON'T STOP.

AND IN MY NEIGHBORHOOD, WE DO HAVE THE SIGNS. BUT RIGHT WHERE MIRANDA IS LOCATED, UP TO WHERE ELLA ELLA NELSON IS. AND ALSO I NOTICED THE OTHER DAY OVER BY BUCKY'S, WE HAVE THESE BEAUTIFUL DUCKS. HOWEVER, SOME PEOPLE ARE JUST NOT BEING SENSITIVE, SO I'LL PUT IT THAT WAY. SO I'M JUST HERE TO SAY THAT AS A BELIEVER IN JESUS CHRIST, AND I'M NOT GOING TO READ IT TO YOU, BUT I AM GOING TO KIND OF PARAPHRASE IT. IT'S FOUND IN GENESIS 126, AND IT TALKS ABOUT HOW WE ARE HELD ACCOUNTABLE TO BE STEWARDS. AND WHEN I SAY STEWARDS, I'M SAYING ANIMALS, I'M SAYING CREATION. WE'RE HELD ACCOUNTABLE. YOU KNOW, WE WON'T BE HERE IN THE NEXT 100 YEARS, BUT SOMEONE WILL. AND THE DECISIONS THAT WE MAKE NOW MATTER. AND SO I'M ALMOST DONE.

I PROMISE YOU I WON'T TAKE ALL THAT TIME. BUT THE OTHER THING I WANT TO SAY IS JUST FOR US TO BE MORE AWARE OF WHAT WE'RE DOING AND THINK ABOUT OTHERS BECAUSE WE'RE STEWARDS, THAT OUR CREATOR HAS MADE US TO BE OVER. AND THE OTHER THING IS THE APARTMENTS. YOU KNOW, I'M USED TO BE I MEAN, I GUESS I STILL DO PLANNING, YOU KNOW, BUT I HAVE A CITY BACKGROUND, AND I USED TO DO A LOT OF, YOU KNOW, JUST CONSULTANT FOR DIFFERENT CITIES. AND I JUST WANT TO SAY, AS WE DEVELOP THESE APARTMENTS, IF WE CAN BE MORE AWARE OF THE IMPACT OF THEM, I KNOW WE'VE HAD A LOT OF GROWTH. I SAW THE ARTICLE THAT WAS IN THE PAPER A FEW MONTHS AGO ABOUT HOW DENTON HAS REALLY SKYROCKETED ON THEIR APARTMENT, SO. I UNDERSTAND THAT, BUT I JUST WANT US TO BE MORE AWARE AND ONE MORE THING OVER BEHIND 2499, THERE IS A AARON STREET AND HICKORY CREEK, AND THERE'S SOME APARTMENTS BEING BUILT WHERE THERE'S WRECKS THERE A LOT. SO I'M JUST ASKING IF THEY CAN CONSIDER A SPEED BUMP, BECAUSE I DID MY BEST TO TRY TO REACH TO GO TO THE PLANNING MEETINGS. BUT FOR SOME REASON, SOMEHOW I NEVER GOT THE EMAIL THEY WERE GOING TO MEET AT HOUSTON ELEMENTARY WENT THERE. THEY WERE NOT THERE. SO ANYWAY, IF THERE'S ANY WAY POSSIBLE

[02:15:05]

SPEED BUMPS WOULD BE NICE BECAUSE THEY'RE HAVING WRECKS THERE ANYWAY. THANK YOU. HAVE A

WONDERFUL EVENING. >> THANK YOU. NEXT SPEAKER IS JAMES JACKSON. YEAH.

>> GOOD EVENING. MY NAME IS JAMES JACKSON. I USE HE HIM PRONOUNS. I'M LOCATED IN DENTON ZIP CODE 76201 AND I'M A TRANS TEXAN. I ALSO SERVE ON THE BOARD OF PRIDE. DENTON AND I SPEAK TONIGHT AS A REPRESENTATIVE OF THAT ORGANIZATION. BEYOND THE WORDS OF OUR OFFICIAL STATEMENT, WHICH WE WILL BE PUBLISHING ON OUR SOCIAL MEDIA. I WANT TO REITERATE JUST HOW HURT AND CONFUSED THE PRIDE DENTON BOARD WAS AT THE REFUSAL TO APPROVE THIS YEAR'S PRIDE MONTH PROCLAMATION AND THE LACK OF TRANSPARENCY AS TO WHY MAYOR HUDSPETH, YOU READ ALMOST THE EXACT SAME PROCLAMATION IN 2022 THAT WE THEN SUBMITTED FOR CONSIDERATION ON MAY 3RD. WE EXPECTED TODAY TO BE CELEBRATORY, A WONDERFUL WAY TO OPEN THIS YEAR'S PRIDE SEASON.

YOU'RE ALLOWING YOUR BELIEFS TO OVERSHADOW THE MAYORAL OFFICE AND WHAT THE OFFICE STANDS FOR.

YOU'RE SAYING LOUD AND CLEAR THAT YOU DON'T SUPPORT EVERY SINGLE PERSON YOU ARE HERE TO REPRESENT. THREE PRIDE IS MORE THAN A CELEBRATION. PRIDE IS THE ACT OF RESISTANCE. PRIDE IS LIVING IN TRUTH AND AUTHENTICITY. PRIDE IS AFFIRMING AND UPLIFTING THE PEOPLE AROUND YOU. PRIDE IS AN OATH TO ONESELF THAT YOU WILL STAND UP FOR YOUR RIGHT TO EXIST WITH EQUAL RIGHTS. PRIDE IS REFUSING TO BE SILENCED. PRIDE IS ALLOWING THE LEGACY OF MY ANCESTORS TO EMPOWER ME TODAY AND EVERY DAY TO LOVE MYSELF WITHOUT APOLOGIZING OR DENYING WHO I AM.

I'D LIKE TO ADD FROM OUR OFFICIAL STATEMENT, WE CALL ON ALL LOCAL LEADERS TO REFLECT ON THE IMPACT OF THEIR DECISIONS AND RECOMMIT TO BUILDING A DENTON THAT TRULY EMBRACES EQUALITY, DIGNITY AND JUSTICE FOR ALL ITS RESIDENTS, ESPECIALLY THOSE WHO HAVE BEEN HISTORICALLY MARGINALIZED. PRIDE DIDN'T REMAIN COMMITTED TO CELEBRATING PRIDE, AFFIRMING OUR COMMUNITIES, AND CONTINUING TO ADVOCATE FOR WHERE EVERYONE BELONGS. WE INVITE ALL COMMUNITY

MEMBERS TO JOIN. >> US IN THIS WORK. THAT'S YOUR TIME.

>> AND THERE'S ONE PERSON THAT ISSUED A CARD IN SUPPORT. AND THE NEXT SPEAKER, IF WE CAN COME ON IN, YOU CAN JUST HANG TIGHT RIGHT THERE. ALL RIGHT. SO NEXT SPEAKER IS GEORGE FERRY.

>> AT SEVEN. >> THIS IS NUMBER FIVE. YEAH. YOU CAN GIVE YOUR NAME. YOU HAVE

FOUR MINUTES. >> THANK YOU. GOOD EVENING. MY NAME IS GEORGE FERRY. EVERY ONE OF YOU SITTING ON THIS DAIS KNOWS ME. I AM A PERSON OF DENTON. I AM A HOMEOWNER. I'VE

[02:20:06]

LIVED HERE OVER 20 YEARS. I WENT TO COLLEGE HERE. I'VE GOTTEN MARRIED HERE. I HAVE TWO DOGS HERE. EARLIER TODAY, I HAD A CONVERSATION WITH LEADER OF A DEPARTMENT IN YOUR GOVERNMENT.

IN OUR GOVERNMENT? BECAUSE THEY WANTED HELP WITH SOME CITIZENS THAT NEEDED SOME RESOURCES. AND THEY REACHED OUT TO ME AND WE HAD LUNCH AND HAD A REALLY LOVELY CONVERSATION ABOUT POWER WITH AND POWER OVER AND UNDERSTANDING THAT WHEN WE WORK TOGETHER AND WE SHARE POWER TOGETHER, AND WE UNDERSTAND HOW TO NAVIGATE DIFFICULT CONVERSATIONS TOGETHER, THAT WE'RE ABLE TO ACHIEVE FAR MORE THAN WHEN POWER IS WIELDED OVER OUR HEADS. AND I, I REALLY APPRECIATED THE. HOW CANDID WE WERE ABLE TO SPEAK, AND I THINK IT WAS REFRESHING TODAY SPECIFICALLY THAT RANDOMLY, WE SCHEDULED THIS DAY TO BE THE DAY THAT WE'D HAVE THIS MEETING.

WHEN WE FOUND OUT LATE THURSDAY, EARLY FRIDAY THAT WE WOULDN'T BE HAVING THE PROCLAMATION. AS A BOARD MEMBER OF PRIDE DENTON, I ALSO AM. I SERVE ON NUMEROUS BOARDS ACROSS THIS CITY, ACROSS THIS COUNTY. I'M A LICENSED MENTAL HEALTH CLINICIAN. I'M DISAPPOINTED. I REMEMBER WHEN I HELPED FILE THESE PROCLAMATIONS IN THE IN THE LATER 20 TEENS WITH STONEWALL DEMOCRATS OF DENTON COUNTY. I DON'T UNDERSTAND WHAT'S CHANGED. IT'S A IT'S A PUZZLE THAT I THINK IS EASY TO SOLVE, BUT I DON'T CARE TO MENTION IT BECAUSE WHAT I DO WANT TO GIVE POWER TO IS SAYING, MAKE NO MISTAKE, THIS IS NOT JUST ABOUT A MONTH ON A CALENDAR. IT'S ABOUT LIFE AND DEATH. THE LGBTQ PLUS COMMUNITY, ESPECIALLY OUR YOUTH, ARE UNDER SIEGE IN A WAY THAT IS UNPRECEDENTED IN MODERN HISTORY. THIS IS NOT HYPERBOLE. ACCORDING TO THE TREVOR PROJECT LGBTQ, LGBT, LBGTQ TWO PLUS YOUTH. THANK YOU. WHO ARE SUBJUGATED TO REJECTION, DISCRIMINATION, OR A LACK OF COMMUNITY SUPPORT ARE MORE LIKELY TO EXPERIENCE DEPRESSION, ANXIETY, AND SUICIDAL IDEATION. THEY'RE AT HIGHER RISK OF HOMELESSNESS. AND TRAGICALLY, SUICIDE IS THE SECOND LEADING CAUSE OF DEATH AMONG YOUNG PEOPLE AGED 10 TO 24. AND STUDIES SHOW THAT REJECTION FROM FAMILIES OR COMMUNITIES WHO FAIL TO SUPPORT THE LGBTQ PLUS IDENTITIES CAN MAKE THIS ALL THE MORE LETHAL. WHEN A COMMUNITY IS TOLD THAT THEIR IDENTITIES ARE NOT WORTHY OF RECOGNITION, THAT THEIR STRUGGLES ARE INVISIBLE, IT CAUSES IMMEASURABLE HARM. AND THIS HARM IS NOT ABSTRACT. IT IS LIVED BY REAL PEOPLE. IT IS LIVED BY THE YOUNG PERSON WHOSE HEART ACHES BECAUSE THEY FEEL THEIR COMMUNITY DOES NOT SEE THEM FOR WHO THEY REALLY ARE. IT IS LIVED BY TRANS TEENAGERS WHO FEAR THAT THEIR LIFE, THEIR LIVES AS THEY WATCH THE LEGISLATURE CONTINUE TO THREATEN TO TAKE AWAY THEIR RIGHTS TO EXIST IN PUBLIC. IT'S LIVED BY THE PARENT WHO FEELS HELPLESS, KNOWING THEIR CHILD'S FUTURE IS BEING DECIDED BY PEOPLE WHO DON'T CARE ABOUT THEIR SAFETY, THEIR MENTAL HEALTH, OR THEIR WELL-BEING. TO DENY A PRIDE PROCLAMATION IN DENTON IS TO CONTRIBUTE TO THIS CLIMATE OF FEAR. IT IS TO SEND A MESSAGE TO THIS CITY, THIS PLACE THAT MANY OF US CALL HOME IS NOT A SAFE HAVEN FOR ALL, AND WE'RE BETTER THAN THAT. IT SHOULD BE A PLACE THAT LONGS FOR DIVERSITY, INCLUSION AND PROGRESS. WE SHOULD BE OPEN MINDED, COMPASSIONATE, COMMITMENT TO SOCIAL JUSTICE AND CARING.

>> AND THAT'S YOUR TIME. >> REPRESENTATIVE FROM DISTRICT TWO. I MISS YOUR YOUR YOUR REQUEST. IS THIS FOR THIS SPEAKER OR FOR THE OTHER ONE? THE QUESTION.

>> APPLIES TO EITHER ONE. >> IT'S A QUESTION. >> IT'S A STATEMENT OF FACT.

>> STATE YOUR STATEMENT OF FACT. >> MY STATEMENT OF FACT IS THERE ARE LGBTQ MEMBERS OF OUR COMMUNITY. THAT IS A STATEMENT OF FACT. WE'RE SEEING THEM HERE. IT IS A STATEMENT OF FACT THAT

JUNE IS PRIDE MONTH. >> OKAY. THANK YOU. NEXT SPEAKER IS. STELLA SCHUMANN. THOMAS, YOU

CAN COME DOWN AND GIVE YOUR NAME. YOU'LL HAVE FOUR MINUTES. >> AND WHENEVER Y'ALL ARE READY, SHOULD I JUST START? OKAY. WHAT UP? COUNCIL. MY NAME IS THOMAS. I AM A VERY SHORT TIME RESIDENT OF DENTON, OF THE CITY OF DENTON. I ORIGINALLY CAME HERE TO STUDY AT THE UNIVERSITY OF NORTH TEXAS, WHERE I CURRENTLY AM EMPLOYED AS A RESIDENT ASSISTANT. AS A RESIDENT

[02:25:01]

ASSISTANT, ONE OF THE THINGS THAT WE FOCUS ON IS BUILDING COMMUNITY. AS A RESIDENT ASSISTANT, I AM IN CHARGE OF A WING IN ONE OF THE HALLS OF THE UNIVERSITY OF NORTH TEXAS, AND I STEWARD THAT COMMUNITY. LIKE MISS BARBARA OWENS MENTIONED BEFORE, I BELIEVE THAT WE NEED STEWARDS IN THIS COMMUNITY. AND LIKE THE OTHER LADY MENTIONED BEFORE, I DIDN'T CATCH HER NAME.

YOU, THE ELECTED MEMBERS OF THIS COUNCIL HAVE NOT ACTED AS STEWARDS OF THIS COMMUNITY. I DIDN'T REALLY PLAN ON BEING HERE TODAY. I DIDN'T REALLY PLAN ON SPEAKING HERE TODAY IS BECAUSE OF YOUR ACTIONS THAT I HAVE CHOSEN TO STAND UP HERE AND TAKE FOUR MINUTES OUT OF MY DAY IN ORDER TO SPEAK TO YOU ON, YOU KNOW, I DIDN'T EVEN PREPARE ANYTHING. I'M JUST SPEAKING FROM THE HEART RIGHT NOW. I REALLY, REALLY, REALLY WANT TO EMPHASIZE THAT THIS COMMUNITY IS STRONGER THAN ANY OF YOUR TENURES AS MEMBERS OF THE CITY COUNCIL. WE WILL BE HERE LONG AFTER YOU AREN'T REELECTED, AND I LIKE YOU TO JUST KEEP IN MIND THAT WE'RE YOU FAIL. WE WILL STEP UP. WHERE YOU FAIL. WE WILL FILL IN THE GAPS. AND WOULD YOU RATHER BE THE PERSON WHO HELPS OTHERS, OR BE THE PERSON WHO HAS TO STEP ASIDE TO LET THE ACTUAL COMMUNITY OF THE CITY OF DENTON HELP ITS OWN WITH THE WITH THE DENIAL OF THIS PROCLAMATION, YOU HAVE CHOSEN THE LATTER. YOU HAVE CHOSEN TO NOT BE A STEWARD OF THE COMMUNITY, AND YOU HAVE CHOSEN TO DENY YOUR PLACE AS AN ELECTED CITY OFFICIAL. I AM A VERY, VERY BIG BELIEVER IN DEMOCRACY, AND I REALLY, REALLY CARE ABOUT WHAT GOES ON IN THIS CHAMBER. YOU ALL COUNCIL MEMBERS OF THE CITY, OF THE COUNCIL, YOU ALL HAVE A WONDERFUL, WONDERFUL OPPORTUNITY TO HAVE BEEN CHOSEN BY YOUR CONSTITUENTS. THEY WROTE YOUR NAME SPECIFICALLY OR CHECKED A LITTLE CHECK BOX NEXT TO YOUR NAME ON THE BALLOT. THEY SUBMITTED IT AND THEY CHOSE YOU TO DO SOMETHING. SEVERAL PEOPLE OUT THERE IN THIS VERY CITY THAT I SHARE WALK PATHS WITH THAT I PASS ON MY BICYCLE AS I RODE HERE TODAY, THOSE PEOPLE CHOSE YOU. NOW I CAME A BIT LATE TO THE PARTY. I HAVE NOT HAD A CHANCE TO PARTICIPATE IN LOCAL ELECTIONS AS MUCH SO FAR, BUT BELIEVE ME, I TAKE THAT YOU KNOW, ABILITY TO PARTICIPATE AS A HUGE POINT OF PRIDE. AS A FIRST GENERATION CHILD OF IMMIGRANT PARENTS FROM MEXICO AND BANGLADESH, I REALLY, REALLY VALUE AND KNOW THE POWER THAT THE GOVERNANCE OF THE COMMUNITY HAS. MY ANCESTORS IN BANGLADESH, THEY FOUGHT FOR SELF-GOVERNANCE. MY GREAT GRANDFATHER WAS KILLED AS A POLITICAL TARGET BECAUSE HE ADVOCATED FOR BANGLADESHI SELF-GOVERNANCE. THAT IS A LINE OF PEOPLE I COME FROM, AND THAT IS A LINE OF PEOPLE THAT EVERYONE WHO CAME INTO THIS CHAMBER TODAY TO TAKE TIME OUT OF THEIR DAY AND SPEAK TO YOU. THAT IS THE KIND OF LEGACY THAT WE ARE UPHOLDING. AND I JUST WANT YOU TO SIT AND MARINATE IN THAT, OKAY? I REALLY, REALLY WANT YOU TO CONSIDER WHAT YOU'RE SITTING IN THAT CHAIR FOR AND WHETHER OR NOT YOU WANT TO USE

THAT CHAIR FOR TO ITS FULLEST CAPABILITY. >> THANK YOU, THANK YOU.

>> AND BEFORE I CALL THE LAST SPEAKER THERE IS THE THERE IS A IF YOU'RE HERE FOR THE PUBLIC HEARING, THAT'S FOR A THAT'S BEEN POSTPONED. AND I MEANT TO MAKE THAT ANNOUNCEMENT EARLIER.

SO FOR A IF YOU'RE HERE FOR THAT PUBLIC HEARING ON. ONE IT'S THE I THINK IT'S LIKE 195. WHAT'S THE NAME OF IT. DENTON. 195 IF YOU'RE HERE FOR THAT, THAT'S BEEN POSTPONED. SO WE'RE NOT GOING TO TAKE THAT UP. SO JUST I NEEDED TO MAKE THAT ANNOUNCEMENT. LAST SPEAKER IS AND LAST NAME DIXON. FIRST NAME H E T H E R. THANK YOU. IF YOU GIVE YOUR NAME AND YOU HAVE FOUR

MINUTES. >> OKAY. >> MY NAME IS ARTHUR DIXON. MUCH LIKE THE LAST PERSON, I WASN'T EXPECTING TO TALK HERE TODAY. I LIVE IN TEXOMA AND HAVE BEEN COMING DOWN TO EVENTS IN DENTON MY ENTIRE LIFE, AND I CAME HERE FOR THE PRIDE EVENT TODAY. I'VE IDENTIFIED THROUGHOUT ALL OF THE LGBT AND DIFFERENT PARTS OF MY LIFE, AND I'M CURRENTLY INTERSEX FROM TRANSITIONING. PRIDE DESERVES TO BE CELEBRATED. SAME SEX ATTRACTION DESERVES TO BE CELEBRATED, AND COMMUNITY DESERVES TO BE CELEBRATED. BUT IN A WAY THAT SEEMS HARMFUL.

GENDER. GENDER IDEOLOGY ABOUT BEIN BORN IN THE WRONG BODY, AWAY FROM CITIZENS AND CELEBRATION, GENDER DYSPHORIA AND THE NEED TO TRANSITION IS A MENTAL DISORDER THAT NEEDS TO BE ADDRESSED WITHOUT HARMING THE SAME SEX ATTRACTED COMMUNITY, OR THE

[02:30:03]

ABILITY TO BE ABLE TO SELF-EXPRESS OUTSIDE GENDER NORMS. THANK YOU.

>> THANK YOU. THAT TAKES US TO OUR CONSENT AGENDA. REPRESENTATIVE FROM DISTRICT

THREE. IS THIS A QUESTION FOR THE SPEAKER. >> STATING A FACT THAT I HOPE YOU'LL GIVE ME A LITTLE LATITUDE? I WANT TO SAY IT'S A STATEMENT OF FACT THAT IT TAKES A LOT OF COURAGE. FOR THOSE OF YOU WHO ARE HERE JUST TO OPENLY BE WHO YOU ARE AND LOVE WHO YOU LOVE. AND I'M PROUD OF YOU ALL FOR REPRESENTING STATEMENT OF FACT.

>> SO IF YOU COULD, IF YOU COULD TRUNCATE YOUR STATEMENT OF FACT TO SUCCINCTLY STATE WHAT YOU

NEED TO SAY WITHOUT THE. >> I DON'T, I DON'T SPEAK, I'M CONFIDENT, I SPEAK FOR OTHERS AND THAT I SEE YOU. I APPRECIATE WHAT YOU CONTRIBUTE TO THE FABRIC OF DENTON, AND I

[3. CONSENT AGENDA]

CELEBRATE PRIDE MONTH WITH YOU. >> OKAY, THAT TAKES US TO OUR CONSENT AGENDA. NOTHING WAS

PULLED. REPRESENTATIVE FROM DISTRICT FOUR. >> I BEG YOUR PARDON, MAYOR.

>> I UNDERSTAND THAT THERE'S BEEN. COUNCIL MEMBER BECK WISHES TO PULL SOME ITEMS.

>> WELL, THAT THAT'S NOT AFFORDED TO US BY OUR RULES. >> YES, IT IS. AND IT WAS

CONVEYED TO STAFF BEFORE THE MEETING. >> MR. CITY ATTORNEY, WHAT ARE

THE COUNCIL RULES ON PULLING STUFF FROM CONSENT? >> THE RULES OF THE COUNCIL IS

IMPLEMENTED. IS THAT. >> LET'S STOP THERE. WHO IMPLEMENTED IT?

>> RIGHT? THE COUNCIL. >> OKAY. >> GO AHEAD. BUT THAT THE ITEMS NEED TO BE PULLED BEFORE THE MEETING STARTS. WE TYPICALLY DO THAT THROUGH THE Q&A PROCESS THAT HAPPENS BEFORE THE MEETING. AND SO WHETHER THAT WAS PULLED OR NOT, I CAN'T SPEAK TO THAT. I

HAVE NO KNOWLEDGE OF WHETHER THAT HAPPENED OR NOT. >> OKAY. I MOVE APPROVAL FOR THE CONSENT AGENDA. IS THERE A SECOND POINT OF ORDER? STATE YOUR POINT OF ORDER.

>> YOU GO. ME OR HIM? >> YOU WERE FIRST. >> ME. OKAY, MR. CHAIR, CAN

DOCTOR BECK NOT MAKE A MOTION? BUT FOR PARTICULAR ITEMS? >> I DON'T UNDERSTAND THE

QUESTION. >> SO DOCTOR BECK IS THE MOVER FOR THE CONSENT AGENDA, IS IT NOT? IN ORDER FOR HIM TO MAKE A MOTION TO APPROVE THE CONSENT AGENDA, BUT FOR CERTAIN ITEMS?

>> NO, NO, HE HE SPOKE. I HAD THE FLOOR. I MADE A MOTION. THAT'S WHAT'S BEFORE US. AND THEN YOU MADE A POINT OF ORDER. SO IF YOUR POINT OF ORDER, YOU'VE STATED I'VE NOT HEARD YOUR POINT OF ORDER, BUT THERE'S A PENDING MOTION PENDING A SECOND. OKAY.

>> POINT OF INFORMATION THEN HOW ABOUT THAT? >> STATE YOUR POINT OF

INFORMATION. >> IS IT NOT GERMANE FOR THE MOVER TO MAKE A MOTION BUT FOR

CERTAIN ITEMS. >> THAT'S NOT BEFORE US. THAT REQUIRES SPECULATION. I CAN'T SPECULATE TO THAT, MR. CITY ATTORNEY, THAT DO YOU UNDERSTAND SOMETHING DIFFERENT?

>> RIGHT. I THINK THE QUESTION IS WHETHER THIS IS ALLOWED. AND I THINK THE MAYOR HAS MADE A DECISION ON THAT. HE SAID IT IS NOT ALLOWED AND HAS MOVED FORWARD WITH THE MOTION.

>> CAN WE. >> GIRLY, GIRLY, GIRLY? >> MR. MAYOR, I'LL SECOND YOUR

MOTION. >> OKAY. WE HAVE A MOTION AND A SECOND TO APPROVE THE CONSENT AGENDA. DISCUSSION. REPRESENTATIVE FROM DISTRICT TWO.

>> STAFF. >> AND PARDON ME, I'M RECOGNIZING COUNCILMEMBER.

REPRESENTATIVE FROM DISTRICT TWO. >> OKAY.

>> MR. MAYOR, I WAS IN THE SCREEN BEFORE YOU MADE YOUR MOTION. MY MOTION WAS THERE BEFORE YOUR MOTION, WAITING TO BE RECOGNIZED. YOU RECOGNIZED YOURSELF.

>> OKAY. THANK YOU. REPRESENTATIVE FROM DISTRICT FIVE.

>> MISS CITY MANAGER, WAS IT CONVEYED TO STAFF AHEAD OF TIME THAT CERTAIN ITEMS FROM CONSENT

AGENDA WERE REQUESTED TO BE PULLED BY DOCTOR BECK? >> IT WAS, BUT IT WAS AFTER THE DEADLINE OF PULLING THOSE ITEMS, WE INFORMED THE MAYOR THAT THE COUNCIL MEMBER, BECK, DID ASK ITEMS TO BE PULLED. AND IF YOU RECALL THE FROM THE COUNCIL RULES, THAT OR COUNCIL PROCEDURES THAT THEY SET THERE TO BE PULLED PRIOR TO THE MEETING, WHICH THEY WERE NOT.

THEY WERE, BUT WERE NOT. WE NOTIFIED ABOUT 35, 40, 45 MINUTES BEFORE, I BELIEVE, AND

ONE OF OUR STAFF WAS NOTIFIED. >> OKAY, I BELIEVE I STILL HAVE THE FLOOR CORRECT.

>> THAT IS CORRECT. >> OKAY. SPEAKING ON THE MOTION ON THE FLOOR COLLEAGUES, I'LL BE VOTING NO ON THE CONSENT AGENDA. THIS BULLCRAP GOT TO STOP. WE GOT TO DO BETTER THAN THIS. I

[02:35:01]

WOULD ENCOURAGE US TO VOTE NO ON THIS, AND LET'S DO THIS THE RIGHT WAY.

>> OKAY. REPRESENTATIVE. DISTRICT TWO. >> YES, I. I SUPPORT WHAT COUNCILOR MCGHEE SAID FOR THE LARGER OUTSTANDING MOTION, BUT I WILL OFFER A REMEDY OF AN AMENDMENT TO THE CONSENT MOTION OF THE TO REMOVE ITEMS F, I, N, AND R FOR INDIVIDUAL CONSIDERATION AND HOPE THAT I GET A SECOND. OTHERWISE I'LL BE VOTING NO TO THE FLOOR ITEM.

>> YOU CAN RULE IT OUT. ALL SAY NO BECAUSE YOU ALREADY MADE THE DETERMINATION THAT IT'S NOT

ALLOWED TO BE HUMAN BIASES. >> SO I SENT IT TO CHRISTINE. >> I'M HAPPY TO ANSWER. OKAY,

OTHERWISE. >> YOU CAN JUST TAKE ANOTHER. >> AS A COUNCILOR. YOU GOT IT?

>> YEAH. OKAY. IN THE IN THE SPIRIT OF EXPEDIENCY, IF THERE'S A SECOND, WE'LL MOVE FORWARD WITH THAT, WITH THAT. BUT HERE MY POINT IS VERY SUCCINCT. THESE ARE RULES THAT THIS BODY AS A WHOLE ENACTED. AND YOU'RE ASKING ME TO FLIPPANTLY IGNORE THE RULES THAT WE PUT IN PLACE FOR US. OR. OPEN THE DOORS FOR A LAST MINUTE PHONE CALL TO THEN TRY TO CIRCUMVENT WHAT WE I, WE HAD TWO MEETINGS WHERE WE TALKED ABOUT THIS IS GOING TO HAPPEN. THEN THE VERY NEXT MEETING, IT DIDN'T HAPPEN. WE WENT OVER THAT. AND THEN THE VERY NEXT MEETING IT HAPPENED AGAIN. WE WENT OVER THAT. SO THIS IS A WELL ESTABLISHED PROCESS AND I WISH AND YOU WOULD BE EARNEST AND SAY, YES, IT IS WELL ESTABLISHED AND WE ARE VENTURING OFF THE BEATEN PATH THAT WE'VE ESTABLISHED AND ALL THOSE THINGS ARE DOCUMENTED. BUT YOU WON'T STAND UP AND SAY THAT YOU SOMEHOW WANT TO PUT IT ON ME AS THOUGH I'M DEVIATING FROM THE PROCESS. I AM NOT. WE DOCUMENTED IT, AND IT'S WELL DOCUMENTED IN EVERY MEETING, AND THOSE VIDEOTAPES ARE THERE FOR YOU TO GO WATCH AND UNDERSTAND. BUT I UNDERSTAND IT DOESN'T FIT WELL WITH THE NARRATIVE. GOT IT. SO WHAT ARE THE WHAT ARE THE SEPARATE VOTES? GIVE ME THOSE LETTERS AGAIN.

>> F I N AND R. >> F I N R. OKAY I'LL AMEND MY MOTION TO SAY MOVE APPROVAL OF THE CONSENT AGENDA. BUT FOR F I N R FOR INDIVIDUAL VOTES I RECOGNIZE THE SECONDER. THAT'S

NOT YOU REPRESENTATIVE FROM. DISTRICT FOUR. >> I SECOND THE MOTION OKAY.

>> YOU GOT A MOTION IN A SECOND. SO WHAT'S BEFORE US. MY MOTION IS EVERYTHING. BUT FOR F I N R ANY OTHER DISCUSSION. IS THIS FOR THIS OR IS THIS SOMETHING ELSE? LET'S VOTE ON THE SCREEN.

THAT PASSES 6160F ID 25880. CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF DENTON

[F. Consider approval of a resolution of the City of Denton amending Policy No. 106.04 “Overtime” to revise various provisions including changes to the calculation of overtime for non-exempt employees, ensuring that overtime is based on hours worked beyond 40 hours per workweek. Additionally, the policy defines overtime calculations for civil service employees; and declaring an effective date.]

AMENDING POLICY NUMBER 106.04 OVERTIME PAY TO REVISE VARIOUS PROVISIONS, INCLUDING CHANGES TO THE CALCULATION OF OVERTIME FOR NONEXEMPT EMPLOYEES. I'LL MOVE APPROVAL. IS THERE A SECOND? REPRESENTATIVE FROM DISTRICT FOUR? OKAY. SHE HAS YOU PLUGGED IN THERE? THAT'S GOOD. SO WE HAVE A MOTION AND A SECOND MOTION BY ME. SECOND BY REPRESENTATIVE FROM DISTRICT

FOUR. REPRESENTATIVE. DISTRICT TWO. >> THANK YOU I WILL I HAVE THE SAME COMMENTS ON EVERY ITEM. SO I WILL ONLY MAKE THEM THIS ONE TIME AND THAT IS THIS. THESE FOUR ITEMS SHOULD NOT HAVE COME TO CONSENT. THEY, THEY WE HAVE NOT HAD PRIOR DISCUSSION ON THESE ITEMS AND THEY HAVE BUDGETARY IMPLICATION. SO WE SHOULD HAVE HAD THESE COME BEFORE US FOR DISCUSSION. CONSIDERING THOSE BUDGETARY IMPLICATIONS, SO THAT I WILL NOT

BE SUPPORTING ANY OF THESE ITEMS FOR THAT REASON. >> I DON'T.

>> KNOW IF YOU WANT TO. IT'S UP TO YOU. >> COUNCIL MEMBER BECK, THESE ARE CLEAN UP ITEMS ON THESE POLICIES. WHEN IT OUTDATED. 1993 WAS THE LAST TIME WE REVIEWED ONE OF THOSE POLICIES. THE OLDEST IS FROM 1993. I BELIEVE CHRISTINE IS HERE AND CAN ANSWER SOME QUESTIONS, BUT IT'S NOT ABOUT THE FINANCIAL IMPLICATION. IT'S THAT THESE ARE OUTDATED POLICIES THAT, IF WE WERE TO USE THEM, WOULD NOT BE CONSISTENT OR FAIR WITH STAFF AND HOW WE WOULD, WHETHER IT'S OVERTIME OR DISCIPLINE OR REDUCTION IN FORCE. SO THE EFFORT HERE AS A PART OF OUR STRATEGIC GOALS AND DOING STANDARD OPERATING PROCEDURES IS THAT WE TAKE A MORE KEEN EYE TO STANDARD OPERATING PROCEDURES AND POLICIES AND KEEP THEM UP TO DATE. AND THESE ARE FOUR. THERE'LL BE MORE COMING THAT ARE BRINGING THEM UP TO DATE IN 2025

[02:40:02]

INSTEAD OF 1993 OR 19 89 OR 2020. AND SO THIS ISN'T REALLY NECESSARILY ABOUT THE FINANCIAL ASPECT. THIS IS ABOUT WHAT'S TRUE AND FAIR WHEN WE DEAL WITH OUR EMPLOYEES, WHEN IT RELATES TO WHETHER IT'S OVERTIME REDUCTION IN FORCE OR ANY OF THE TWO OTHER ITEMS. AND SO CHRISTINE'S HERE. THAT CAN EVEN SHOW YOU IN THE POLICY HOW WE TOOK OUT SOME INFORMATION THAT

WAS MORE FAIR. >> WE'RE LOADING IT ON THE. I JUST ONE MOMENT. WE'RE GETTING

UNLOADED. >> NO WORRIES. BECAUSE YOU DIDN'T HAVE ANY NOTICE.

>> WE TALKED ABOUT. >> OKAY. I CAN QUICKLY GO THROUGH THEM IF THAT'S HELPFUL.

>> NO, IT'S NOT IF PEOPLE DON'T UNDERSTAND OR ARE WILLING TO. YEAH. IT'S NOT AGAIN, IF YOU WOULD HAVE HAD NOTICE AND I THINK THERE ARE EVEN QUESTIONS ASKED ABOUT THESE ITEMS IN ADVANCE, I CAN'T FIND IT. BUT IT'S. YEAH. NO. YEAH. IN THE QUESTION SUBMITTED, THERE WERE QUESTIONS ABOUT THIS VERY THING THAT WERE ANSWERED. AND SO IT'S NOT A SURPRISE TO ANYONE. SO NO I'M REAL OKAY. ALL RIGHT. WE HAVE A MOTION AND A SECOND REPRESENTATIVE. DISTRICT TWO.

ANYTHING ELSE? >> YEAH. NO, I WAS JUST GOING TO VERY BRIEFLY RESPOND I IN FOR THESE ITEMS AND FUTURE ITEMS. IT IS NOT NECESSARILY THAT THAT WE WOULD COME TO ANYTHING A DIFFERENT CONCLUSION THAT IS THAT IF WE ARE GOING TO GIVE APPROVAL, ESPECIALLY FOR MATTERS OF BUDGETARY CONCERN, WHICH IS OUR PURVIEW, THEN WE NEEDED TO HAVE THAT DISCUSSION. AND EVEN IF IT WAS BRIEF, EVEN IF WE LUMPED IT INTO ONE, ONE ITEM AND, AND PUT THEM IN PACKAGES

AND BUNDLED THEM. >> SO DID I. DID I HEAR YOU RIGHT? IT DIDN'T HAVE BUDGET

IMPLICATIONS OR. >> NO, NOT NECESSARILY THESE. THIS IS I'LL JUST SAY THIS EVERY EVERY YEAR. WE SHOULD BE LOOKING AT OUR POLICIES AND PROCEDURES TO MAKE SURE THEY'RE IN LINE WITH THE CURRENT TRENDS AND WHAT'S HAPPENING IN OUR CITY AND IN THE STATE AND OTHER THINGS.

AND SO THESE ARE FOUR ITEMS THAT HAVE BEEN WOEFULLY NEGLECTED FOR A LONG TIME TO BE UPDATED. AND THEY PARTICULARLY DEAL WITH OUR EMPLOYEES. AND SO INSTEAD OF TAKING A 20 OF THEM TOGETHER, WE'RE SLOWLY BY STAFF. AND IT GOES THROUGH A SERIES OF COMMITTEES AND STAFF AND DEPARTMENT HEADS TO MAKE SURE THAT WE ARE TREATING THEM FAIRLY AND THAT WE'RE KEEPING UP WITH THESE POLICIES. BECAUSE WHEN YOU HAVE TO REFER TO A POLICY, WHEN YOU'RE TALKING WITH STAFF, IF IT'S NOT UPDATED, IT'S NOT, IT'S NOT, IT'S NOT VALID. SO ORIGINALLY ADOPTED IN 1985 WAS THE OVERTIME ONE. IT WAS LAST UPDATED IN 2013. WE TRIED TO IMPROVE THE CLARITY AND THE READABILITY OF IT AND REMOVE PROCEDURAL STEPS FROM THE POLICY, BECAUSE THE EMPLOYEES COULDN'T UNDERSTAND WHO COULD UNDERSTAND WHAT IT MEANT. IT CLARIFIES THE 40 HOUR RULE, WITH EXCEPTION FOR POLICE. IT CLARIFIES WHO APPROVES OVERTIME. IT CONNECTS TO OUR CORE VALUES IN THE CITY, AND IT GIVES FUTURE MANAGER GUIDES ON HOW TO ADDRESS THINGS CONSISTENTLY WITH EMPLOYEES. SO ALL OF THESE ARE FOR THE PURPOSE OF BEING MORE CONSISTENT, MORE FAIR, MORE OPEN, MORE TRANSPARENT. THE MONEY PART OF IT IS NOT APPLICABLE. AND SO WE DID ANSWER QUESTIONS, VERY SPECIFIC QUESTIONS IN THE MATRIX THAT WE REPORTED BACK TO THE BACK TO THE COUNCIL THAT CAME BACK YESTERDAY THAT SPECIFICALLY OUTLINED ALL OF THESE ISSUES AND HOW OLD THESE POLICIES WERE. THEY DO NOT PERTAIN NECESSARILY TO THE FINANCIAL ASPECT. IT PERTAINS TO QUALITY OF CARE AND SUPERVISION AND LEADERSHIP WITH OUR EMPLOYEES.

>> OKAY. SO WE HAVE A MOTION AND A SECOND, ANY OTHER DISCUSSION? SEEING NONE. THIS IS ITEM F.

LET'S VOTE ON THE SCREEN. >> WHO WHO WENT ON. THERE. THANK YOU.

[I. Consider approval of a resolution of the City of Denton amending Policy No. 109.01 “Corrective Action” to provide revised information on the implementation of performance improvement plans and clearly defines the roles and responsibilities of supervisors and employees within the corrective action process to ensure transparency and fairness; and declaring an effective date.]

>> AND THAT PASSES 5 TO 1. TAKES US TO ITEM I. THANK YOU AGAIN. NO NOTICE ID 25881. CONSIDER APPROVAL OF THE RESOLUTION OF THE CITY OF DENTON AMENDING POLICY NUMBER 109.01 CORRECTIVE ACTION TO PROVIDE A REVISED INFORMATION ON THE IMPLEMENTATION OF PERFORMANCE IMPROVEMENT PLANS. I MOVE APPROVAL. IS THERE A SECOND MOTION AND A SECOND BY REPRESENTATIVE FROM DISTRICT FOUR? ANY OTHER DISCUSSION? SEEING NONE, LET'S VOTE ON THE

SCREEN. >> THANK YOU. >> ITEM N ID 25885. CONSIDER

[N. Consider approval of a resolution of the City of Denton amending Policy No. 109.04 “Reduction In Force” to provide clarification on employee appeal rights, decision-making criteria, and budgetary considerations related to implementing a reduction in force; and declaring an effective date.]

APPROVAL OF A RESOLUTION OF THE CITY OF DENTON AMENDING POLICY NUMBER 109.04. REDUCTION IN

[02:45:01]

FORCE TO PROVIDE CLARIFICATION ON EMPLOYEE APPEAL RIGHTS DECISION MAKING CRITERIA. I'LL MOVE APPROVAL. SECOND. SECOND BY REPRESENTATIVE DISTRICT FOUR. ANY DISCUSSION? SEEING NONE,

LET'S VOTE ON THE SCREEN. >> ARE. >> THAT PASSES FIVE ONE AND THEN

[R. Consider approval of a resolution of the City of Denton amending Policy No. 109.03 “Appeals” to revise various provisions and to enhance employees’ understanding of their rights to appeal corrective actions when applicable; and declaring an effective date.]

ITEM R I'D 25886. CONSIDER APPROVAL OF A RESOLUTION OF CITY OF DENTON AMENDING POLICY NUMBER 109.03. APPEAL TO REVISE VARIOUS PROVISIONS AND TO ENHANCE EMPLOYEES UNDERSTANDING OF THEIR RIGHTS TO APPEAL CORRECTIVE ACTION. I MOVE APPROVAL SECOND BY REPRESENTATIVE DISTRICT FOUR.

ANY OTHER DISCUSSION REPRESENTATIVE FROM DISTRICT THREE. I APPRECIATE, YOU KNOW, HAVING GOTTEN THE NOTES IN ADVANCE, ASKING KIND OF WHY ALL THESE WERE HAPPENING AT THIS TIME. IT'S NOT 100% CLEAR TO ME, AND I WONDER IF SOMEBODY COULD SPELL OUT WHAT THE CHANGES ARE TO ANY APPEAL OPTIONS THAT EMPLOYEES HAVE. I UNDERSTAND THAT IT'S DESIGNED TO CLARIFY.

YEAH, BUT HAS ANYBODY LOST ANY APPEAL RIGHTS. >> IT IT BETTER CLARIFIES BECAUSE, YOU KNOW, AT TIMES AN EMPLOYEE DOES RECEIVE DISCIPLINE FROM THEIR SUPERVISOR AND THEY HAVE AN APPEAL PROCESS THEY CAN GO THROUGH BECAUSE IT'S NOT LIKE IT JUST ENDS THERE. IT'S LIKE, SO IF YOU WANT TO APPEAL, IT CLARIFIES IT BETTER SO IT CAN READ IT AND UNDERSTAND WHAT IS MY NEXT STEP. IT REMOVES PROCEDURAL STEPS. I THINK THAT CLARIFIES ELIGIBILITY. SO WHO IS ELIGIBLE TO FILE? YOU HAVE TO BE FULL TIME REGULAR. YOU CAN'T BE IN YOUR INTRODUCTORY PERIOD.

THESE ARE ALL THINGS THAT ARE IN THERE. IT CLARIFIES THAT AND IT TALKS ABOUT WHAT IS APPEALABLE.

SO IF YOU GET A SUSPENSION AND VOLUNTARY DEMOTION OR TERMINATION THAT'S APPEALABLE, IT CLARIFIES WHAT IS APPEALABLE. CAN I APPEAL A WRITTEN REPRIMAND. NO YOU CAN'T. NEVER BEEN ABLE TO. AND THEN IT REFINED THE LANGUAGE AROUND IT AS TO WHAT COULD BE OVERTURNED IF YOU DID APPEAL IT EXISTING OR COMING ABOUT SEEMINGLY AT RANDOM OR BY CHANCE OR CAPRICIOUS. IT'S HARD TO DEFINE THOSE THINGS. AND THEN IT IT UPDATES THE COMMITTEE COMPENSATION. SO WHEN SOMEONE FILES AN APPEAL, IT ISN'T GOING TO THEIR SUPERVISOR. IT GOES TO A COMMITTEE OF ONE DIRECTOR OR AN ASSISTANT DIRECTOR OR DEPUTY DIRECTOR. IT HAS ONE MANAGER AND THEN IT CAN HAVE ANY OTHER MEMBER. SO IT'S COMPLETELY UNBIASED, SOMEONE OUTSIDE OF THAT DEPARTMENT. AND SO IT JUST CLARIFIES THAT PROCESS FOR EMPLOYEES. IT DOESN'T TAKE AWAY ANYTHING FROM THEM. IT'S JUST CLARIFYING IT. AND AGAIN THIS ONE WAS AN OLDER ONE. ALL OF THESE ARE OLDER. AND THEY JUST NEEDED TO BE UPDATED AND THROUGH THROUGH I GUESS I WOULD HAVE TO SAY PROCESS OF MAKING MISTAKES AND OTHER THINGS. WE FOUND THAT IT WASN'T AS CLEAR TO SOME OF OUR EMPLOYEES, AND WE NEEDED TO BE MORE, PUT MORE CLARITY IN THERE AND MAKE SURE THAT WE AS SUPERVISORS WERE FOLLOWING AS WELL, BUT WAS CLEAR HOW TO FOLLOW IT. AND SO THERE WASN'T ANYTHING TAKEN AWAY.

>> AND I'M SORRY, I'M JUST PARAPHRASING TO MAKE SURE I'M TRACKING. SO IT'S EXPRESSING A

CURRENTLY EXISTING PRACTICE. >> YES, WE HAVE CURRENTLY A DISCIPLINARY PROCESS AND A DISCIPLINARY APPEAL, AND IT'S JUST GOING BACK INTO THAT CURRENT POLICY AND CLARIFYING AND RELOOKING AT WHAT DOES IT MAKE SENSE THE WAY IT'S WRITTEN. SO LIKE IT CLARIFIES THE ELIGIBILITY BECAUSE LET'S SAY AN EMPLOYEE COMES HERE FOR SIX, THEY'RE HERE SIX MONTHS. THEY GET DISCIPLINED AND THEY FILE THEY WANT TO FILE AN APPEAL. THEY CAN'T BECAUSE YOU HAVE TO BE THERE ONE YEAR. YOU'RE IN YOUR PROBATIONARY PERIOD. SO IT JUST CLARIFIES IT MORE SO THAT ANY SUPERVISOR CAN LOOK AT THE POLICY AND CLEARLY FOLLOW THAT CONSISTENTLY ACROSS THE ORGANIZATION, BECAUSE WE HAVE HAD INCONSISTENCIES AND DIFFERENT DEPARTMENTS. AND SO THIS IS TO BUT THIS WASN'T JUST US ARBITRARILY. THIS IS A GROUP OF EMPLOYEES. THE COMMITTEE THAT LOOKS AT IT. AND THEN IT FINALLY COMES TO COUNCIL. SO IT'S REALLY A VERY VETTED PROCESS. AND REALLY OVERALL IT'S TO BE MORE CLARITY, TO BE A LITTLE MORE FAIR AND TO MAKE SURE WE'LL MAKE SURE EMPLOYEES GET TO SEE ALL THIS AND THEY GET THE INFORMATION. SO THEY HAVE THEY KNOW THEIR RIGHTS, THEY KNOW WHAT THE PROPER YOU KNOW, WHAT THE POLICY IS. AND THEY CAN THEY CAN BETTER UNDERSTAND WHAT IS APPEALABLE, WHAT'S NOT APPEALABLE, WHEN CAN I APPEAL? AND THEN WHAT WHAT ARE THE DEFINITIONS OF ARBITRARY AND CAPRICIOUS? BECAUSE SOMETIMES IT'S HARD TO FOR SOMEONE TO TELL THEM, WELL, I'M DISCIPLINING YOU ON THIS, BUT THEN WHAT? WHAT IS

IT? YOU NEED TO BE MORE CLEAR ABOUT WHAT IT IS. >> THANK YOU.

>> ANY OTHER ANY OTHER QUESTIONS? SEEING NONE. LET'S VOTE ON THE SCREEN. PASSES 6 TO

[A. Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to execute a contract with Siddons Martin Emergency Group, LLC, through the Buy Board Cooperative Network Contract Nos. 698-23, 745-24, 746-24, and an authorized dealer for Skeeter Emergency Vehicles, LLC, through the Houston-Galveston Area Council of Governments (H-GAC) Cooperative Purchasing Program Contract No. FS12-23, for the purchase and repairs of fire apparatus and equipment for the Fleet Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 8814 - awarded to Siddons Martin Emergency Group, LLC, for one (1) year, with the option for four (4) additional one (1) year extensions, in the total five (5) year not-to-exceed amount of $28,003,500.00).]

1 OR 5 TO 1. TAKES US TO OUR LAST ITEM. CONCLUDE OUR CONCLUDING ITEMS ARE ONE ITEM ON

[5. ITEMS FOR INDIVIDUAL CONSIDERATION]

THE AGENDA. ITEM FIVE A ID 25997. CONSIDER ADOPTION OF ORDINANCE OF THE CITY OF DENTON, TEXAS HOME RULE MUNICIPAL CORPORATION, AUTHORIZING THE CITY MANAGER TO EXECUTE A

[02:50:03]

CONTRACT WITH CITIZENS. MARTIN ENERGY EMERGENCY GROUP, LLC. >> GOOD EVENING, TOM GRAHAM, DIRECTOR OF FACILITIES AND FLEET. THE FLEET SERVICES DEPARTMENT IS REQUESTING A CONTRACT WITH CITIZENS MARTIN EMERGENCY GROUP FOR THE PURCHASING OF FIRE APPARATUSES AND THE REPAIR OF SUCH. THE CITY OF DENNIS FLEET SERVICES DEPARTMENT PURCHASES, REPAIRS AND MAINTAINS A FIRE APPARATUS AND EQUIPMENTS FOR THE CITY FIRE DEPARTMENT TO SUPPORT THEIR EMERGENCY OPERATIONS. THIS CONTRACT COVERS THE PURCHASE AND REPAIR OF ALL THE SPECIALIZED FIRE APPARATUSES AND RELATED EQUIPMENT TO SUCH REPAIR SERVICES, ENSURE THAT THE FIRE APPARATUS IS REMAIN ACTIVE AND PREPARED FOR EMERGENCY OPERATIONS. ALL FIRE APPARATUS ACQUISITIONS FOLLOW THE CITY'S BUDGETING PROCESS. THE CITY WILL ONLY PAY FOR SERVICES RENDERED AND IS NOT OBLIGATED TO PAY THE FULL CONTRACT AMOUNT UNLESS NEEDED. ON THE SCREEN IS THE CONTRACT ESTIMATES OVER THE NEXT FIVE YEARS. THIS WAS CONDUCTED THROUGH A COLLABORATIVE EFFORT WITH THE FIRE DEPARTMENT AND THROUGH A 15 POINT LIFE CYCLE ANALYSIS BY OUR ASSET MANAGEMENT SYSTEM. AN ASSET ACQUISITION EXAMPLE IS OUR 2024 PIERCE ENGINE, WHICH WAS $1.26 MILLION AT THE TIME OF ACQUISITION. STAFF RECOMMENDS AWARDING A CONTRACT WITH MARTIN EMERGENCY GROUP FOR PURCHASE AND REPAIRS OF FIRE APPARATUS AND EQUIPMENT FOR THE FLEET SERVICES DEPARTMENT FOR ONE YEAR, WITH AN OPTION OF FOUR ADDITIONAL ONE YEAR EXTENSIONS, FOR A TOTAL OF

FIVE YEARS NOT TO EXCEED $26 MILLION. >> THANK YOU.

>> VERY MUCH. I MOVE APPROVAL. IS THERE A SECOND? >> I'LL SECOND.

>> SECOND BY REPRESENTATIVE FROM DISTRICT FOUR. MOTION BY MAYOR HUDSPETH. DISCUSSION

REPRESENTATIVE FROM DISTRICT TWO. >> THANK YOU. CAN YOU FLIP BACK TO THE TABLE WITH THE FIVE YEAR PROJECTIONS? I JUST WANT TO MAKE SURE SOMETHING IS THIS OBLIGATING US TO BUY? I MEAN YOU SAY IN THERE THAT THE TRUCKS ARE ROUGHLY A BUCK AND A HALF AND, YOU KNOW, THERE'S THREE ACROSS THE BOARD, WHETHER WE'RE TALKING ABOUT REPLACEMENTS OR PURCHASES, IS THIS OBLIGATING US TO BUY? WHAT DOES THAT GIVE US, LIKE EIGHT, EIGHT NEW TRUCKS AND FIVE

REPLACEMENT TRUCKS? OR IS IT JUST A CEILING? >> THIS IS JUST A CEILING. THIS IS PROJECTION. COLLABORATED WITH THE FIRE DEPARTMENT ON WHAT WE MAY NEED. THIS ALLOWS US CAPACITY TO BUY. IF A FIRE TRUCK LASTS LONGER THAN ITS EXPECTED LIFE, WE WOULD OBVIOUSLY NOT PURCHASE IT AND BE FISCALLY RESPONSIBLE, BUT THIS DOES GIVE US THE OPPORTUNITY TO PURCHASE

IF NEEDED. >> ALL RIGHT, SO IF NEEDED, WE CAN PURCHASE EIGHT NEW VEHICLES WITH THIS AUTHORITY AND REPLACE FIVE VEHICLES IS ROUGHLY WHAT THIS IS SHOWING.

>> ROUGHLY DEPENDING ON THE COST OF EACH VEHICLE. >> ALL RIGHT. THANK YOU FOR THE