[00:00:06]
          GOOD AFTERNOON AND WELCOME TO THIS MEETING OF THE DENTON CITY COUNCIL. TODAY IS JUNE 17TH, 2025. IT IS 2 P.M, SO WE'LL CALL THIS MEETING OF THE DENTON CITY COUNCIL TO ORDER. AND FIRST 
          [WORK SESSION]
THING ON THE AGENDA ARE CITIZEN COMMENTS ON CONSENT AGENDA ITEMS. SEEING NONE TAKES US TO ITEM TWO. REQUEST FOR CLARIFICATION. AGENDA ITEMS LISTED ON THE AGENDA FOR PUBLIC HEARING AND INDIVIDUAL CONSIDERATION. ANY ANY QUESTIONS? SEEING NONE. TAKES US 
          [A. Receive a report, hold a discussion, and give staff direction regarding the nominations of Council Members to standing and ad hoc boards, committees, and other internal/external groups, and the associated nomination and appointment processes.
    [Estimated Presentation/Discussion Time: 45 minutes]]
TO OUR FIRST WORK SESSION. REPORT THREE A I'D 251026 RECEIVE, REPORT WHOLE DISCUSSION AND GIVE STAFF DIRECTION REGARDING THE NOMINATIONS. COUNCIL MEMBERS TO STANDING AND AD HOC BOARD COMMITTEES. AND I ALSO WILL NOTE FOR THIS EVENING THERE'S BEEN ONE ITEM PULLED FROM THE CONSENT AGENDA AND THAT IS ITEM B, CONSIDER A NOMINATION APPOINTMENT TO THE CITY'S PLANNING AND ZONING COMMISSION. THAT ONE HAS BEEN PULLED FOR A SEPARATE VOTE. EVERYTHING ELSE WILL BE VOTED ON AT ONCE, AND I'LL TURN IT OVER TO THE CITY SECRETARY. 
          >> GOOD AFTERNOON, MAYOR AND COUNCIL. LAUREN BOWDEN, CITY SECRETARY, HERE TO DISCUSS THE CITY COUNCIL MEMBER APPOINTMENTS. THIS IS YOUR APPOINTMENTS TO MEMBERSHIP ON VARIOUS BOARDS, COMMISSIONS AND COMMITTEES. SO THESE APPOINTMENTS ARE REVIEWED ANNUALLY. THE MAYOR NOMINATES FOR THE COMMITTEE ON THE ENVIRONMENT. SO THE MAYOR WILL PROVIDE US WITH THOSE NOMINATIONS. AND IT'S APPROVED BY COUNCIL. AND THEN REGARDING THE OTHER COUNCIL MEMBER APPOINTMENTS, THERE WAS AN ISR ON TWO FRIDAYS AGO WHERE CITY COUNCIL MEMBERS WERE ASKED TO IDENTIFY THE BODIES ON WHICH THEY WANT TO SERVE. I DID RECEIVE RESPONSE FROM SOME OF THE COUNCIL MEMBERS. SO FOR THOSE THAT DID NOT RESPOND, I'LL JUST BE SEEKING YOUR FEEDBACK AT THIS TIME. OVERSIGHT AND RESPONSIBILITIES FOR THE SPECIFIC COUNCIL COMMITTEES. THESE ARE COMMITTEES WHERE ONLY COUNCIL MEMBERS ARE INVOLVED. 
          ARE MEMBERS OF THE COMMITTEE. THEY'RE AUTHORIZED BY THE RULES OF PROCEDURE. SECTION 220 9H1. 
          THEY CONSIST OF THREE MEMBERS OF THE COUNCIL SERVING AT THE PLEASURE OF THE COUNCIL. SO 2024, JUST RECOGNIZING THAT MOBILITY COMMITTEE WAS REORGANIZED TO INCLUDE CITIZEN PARTICIPATION. COMMITTEE CHAIRS ARE SELECTED BY THE COMMITTEE AND THEY PROVIDE POLICY RECOMMENDATIONS TO COUNCIL. THIS IS AN OVERVIEW OF THE APPOINTMENTS THAT ARE REQUIRED FOR THIS YEAR. I WILL GO INTO MORE DETAIL ON EACH OF THESE. YOU'LL SEE THAT SOME OF THEM ARE ZERO. THAT'S BECAUSE THE APPOINTMENT TERMS THAT WERE FROM LAST YEAR ARE STILL VALID, SO WE'RE NOT SEEKING ANY CHANGES ON THOSE. THE DIRECTION THAT WE'RE SEEKING IS TO RECEIVE THE MAYORAL NOMINATIONS FOR THE COMMITTEE ON THE ENVIRONMENT AND TO REVIEW THE COUNCIL MEMBER PREFERRED NOMINATIONS COUNCIL TO PROVIDE DIRECTION TO STAFF REGARDING WHICH MEMBERS TO LIST FOR FORMAL APPOINTMENT. AND THE APPOINTMENTS WILL BE HEARD ON JULY 15TH. SO GETTING INTO IT A LITTLE BIT HERE, THE COMMITTEE ON THE ENVIRONMENT, BEING FIRST UP MAYOR, IF YOU WOULD ADVISE. 
          >> CERTAINLY. YEAH, I'M GOING TO I'M GOING TO MAKE THE SAME RECOMMENDATION. 
          >> OKAY. AND FOR THE COMMUNITY PARTNERSHIP COMMITTEE, I DID RECEIVE FEEDBACK FROM COUNCIL MEMBER BYRD THAT SHE WOULD LIKE TO REMAIN ON THE COMMITTEE. IF THERE IS FURTHER INSTRUCTION, 
          HAPPY TO RECEIVE IT AT THIS TIME. >> SO IT'S CURRENTLY CONSTITUTED COUNCIL MEMBER. JESTER. COUNCIL MEMBER. HOLLAND. COUNCILMAN. HOLLAND. YEAH. 
          >> I'D LIKE TO REMAIN ON. >> OKAY. >> THERE ARE A COUPLE OF OTHERS I'M INTERESTED IN THAT IF WE CAN'T FILL THE SPOT TO FILL THE SPOT. BUT AT THIS TIME, I'D LIKE TO PUT A PIN IN IT IF SOMEONE ELSE HAS INTEREST IN THIS COMMITTEE, CERTAINLY. 
          >> SO I'LL OPEN IT UP. ANYONE INTERESTED IN THE COMMUNITY PARTNERSHIP COMMITTEE? AND IF YOU COULD, MAYBE YOU CAN TOUCH ON THAT. IS THAT THAT'S HOT FUNDS. IS THAT. 
          >> YES. >> OKAY. >> GOT IT. JUST TO BE CLEAR, THE COMMUNITY PARTNERSHIP COMMITTEE HAS A HAS A SISTER COMMITTEE, IF YOU WOULD, WHERE AT LEAST TWO OF THE MEMBERS ON THE COMMUNITY PARTNERSHIP COMMITTEE MUST ALSO SERVE ON THE DISCOVER DENTON 
          ADVISORY BOARD, AND THOSE TWO MEMBERS ARE CURRENTLY. >> COUNCIL COUNCILMEMBER HOLLAN. 
          THAT HOLDS RIGHT. OKAY. THANK YOU. ANYONE ELSE INTERESTED TO SERVE ON THE COMMUNITY 
          [00:05:07]
PARTNERSHIP COMMITTEE? OKAY. WELL, OKAY. WE'LL COME BACK TO IT. 
          >> ALL RIGHT. SO THE NEXT UP WE HAVE MOBILITY COMMITTEE. AND I DID RECEIVE INTEREST FROM COUNCIL MEMBER BECK AND COUNCIL MEMBER JESTER TO SERVE ON THIS COMMITTEE CURRENTLY AND COUNCIL MEMBER BYRD. CURRENTLY, THE COMMITTEE CONSISTS OF COUNCILMEMBER BYRD, 
          COUNCILMEMBER BECK AND COUNCILMEMBER HOLLAND. >> OKAY. SO YOU'VE ALREADY HEARD 
          FROM GIVE THAT TO ME AGAIN. >> COUNCIL MEMBERS BECK, BYRD AND JESTER OKAY. 
          >> REPRESENTATIVE FROM DISTRICT FOUR. >> I'D LIKE TO. 
          >> STAY THERE. OKAY. THEN WE'LL HAVE TO FIGURE THAT OUT. LET'S. OKAY. GOT IT. OKAY, LET'S KEEP 
          GOING I GOT NOTES. WE'LL COME BACK TO IT. OH, MAYOR PRO TEM. >> COULD YOU PUT MY NAME IN THAT 
          FOR CONSIDERATION AS WELL? FOR MOBILITY PLEASE? >> CERTAINLY. 
          >> THANK YOU. THE EMAIL WENT OUT BEFORE I WAS ON, SO I DIDN'T GET IT. 
          >> GOT IT. THANK YOU. OKAY. >> AND FOR DEVELOPMENT CODE REVIEW COMMITTEE, THE COMMITTEE CURRENTLY CONSISTS OF COUNCIL MEMBERS BECK BYRD. AND IT WAS THE FORMER COUNCIL MEMBER MELTZER. SO THERE IS A VACANCY THERE. CURRENTLY I HAVE EXPRESSED INTEREST FROM COUNCIL 
          MEMBERS BECK AND JESTER AND COUNCIL MEMBER BYRD. >> OKAY. GOT IT. OKAY. WE'LL 
          COME BACK TO THAT. OH. >> ADD ME TO THAT LIST, PLEASE. CERTAINLY. THANK YOU. 
          >> GOT IT. OKAY. >> THEN WE HAVE THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD. 
          THIS CURRENTLY CONSISTS OF MAYOR HUDSPETH AND COUNCIL MEMBER MELTZER, WHO'S NO LONGER ON THE ON THE BOARD. MAYOR, OUR RECORDS INDICATE THAT YOU'VE SERVED THREE TERMS ON THIS COMMITTEE AT THIS POINT. AND BASED ON THE READING OF THE ESTABLISHING ORDINANCE, IT INDICATES THAT NO MEMBERS MAY EXCEED THE THREE TERMS. SO THAT'S WHY WE HAD INDICATED THAT THE MAYOR THAT YOUR OPPORTUNITY ON THIS HAD BEEN TERMED OUT. AND AS COUNCIL MEMBER, MELTZER IS NO LONGER ON THE BOARD. WE HAVE INTEREST FROM COUNCIL MEMBER BECK AND COUNCIL MEMBER JESTER AND COUNCIL MEMBER 
          BYRD. >> OKAY. AND THAT HAS A IS THAT THE ONE WHERE YOU HAVE TO SERVE 
          ON BOTH? >> YES, SIR. SO THIS ONE DOES REQUIRE SERVICE ON THE TAX INCREMENT REINVESTMENT ZONE NUMBER TWO BOARD. SO IT'S A TWO FOR ONE. 
          >> RIGHT. AND SO THOSE INDICATIONS YOU GAVE COUNCILMAN JESTER BYRD. THAT'S FOR BOTH. 
          YES. RIGHT. THEY GAVE AN INDICATION FOR BOTH OF THOSE. >> YES SIR. 
          >> I'M BACK SIR. >> OH. ALL RIGHT. AND THAT'S NUMBER TWO. THAT'S A COMPANION. 
          >> YES, SIR. >> GREAT. THANK YOU. THAT OKAY. WE'LL COME BACK AND THAT'S TERS 
          NUMBER ONE. IS THERE ANYTHING TO BE DONE THERE. >> CURRENTLY CONSISTS OF COUNCIL MEMBERS BYRD AND BECK. I WAS ADVISED BY COUNCIL MEMBER BYRD THAT SHE WOULD BE WILLING TO 
          STEP BACK FROM THIS BOARD. >> OKAY. IS THERE ANYONE THAT WOULD BE INTERESTED IN TERS 
          NUMBER ONE? >> I'M SORRY. ALL RIGHT. >> OKAY. 
          >> I'LL DO THAT. GOT IT. >> OKAY. >> ALL RIGHT. 
          >> AND THAT'S THE. YEAH. DOWNTOWN AREA. >> GREAT. POINT OF ORDER. 
          >> PLEASE STATE YOUR POINT OF ORDER. >> ECONOMIC DEVELOPMENT MUST 
          SERVE ON TERS ONE. TWO. >> TERS. TWO, TWO. YES, SIR. >> I THINK THAT'S MY QUESTION. 
          THANK YOU, THANK YOU. >> OKAY. AND THEN. SO. >> SO THAT'S IT FOR OUR INTERNAL 
          [00:10:07]
          CITY OF DENTON. >> PERFECT. >> BOARDS. SO WE HAVE THE DALLAS REGIONAL MOBILITY COALITION. SO WE HAVE YOU MAYOR HUDSPETH. THERE'S NO TERM EXPIRATION. AND IT'S IF YOU SO CHOOSE TO CHOOSE AN ALTERNATE COUNCIL MEMBER. JESTER DID INDICATE AN INTEREST 
          IN SERVING AS THE ALTERNATE. >> OKAY. >> SO YEAH I TAKE YOUR POINT. 
          LET'S, LET'S LET'S DO LET'S HANDLE THE INTERNAL. DISCUSSIONS AND THEN WE'LL MOVE TO EXTERNAL IF THAT'S OKAY. SO WE TALKED ABOUT I THINK COMMUNITY PARTNER COMMUNITY PARTNERSHIP. WE LEFT 
          OFF. WE STARTED THERE. RIGHT. IS THAT RIGHT. >> YES. AND SO FOR COMMUNITY 
          PARTNERSHIP WE HAVE COUNCIL MEMBERS HOLLAND BYRD AND JESTER. >> IS OKAY. 
          >> COUNCIL MEMBER JESTER SAID THAT SHE WOULD SERVE BUT SHE WOULD BE INTERESTED IN AN 
          OPPORTUNITIES ON OTHER BOARDS. >> GOT IT. >> OKAY PRIMARILY. 
          >> SO WE'LL CIRCLE BACK TO THAT. AND THAT BRINGS US TO MOBILITY COMMITTEE. THERE'S THE EXISTING. 
          SO FROM MY NOTES, THE EXISTING CURRENT THREE MEMBERS ARE WANTING TO RETURN AS WELL AS 
          COUNCILMAN JESTER AND MAYOR PRO TEM. IS THAT CORRECT? >> YES, SIR. 
          >> GOT IT. WHO DID YOU. WELL, I'LL OPEN THE FLOOR FOR SUGGESTIONS. I DON'T KNOW HOW, BECAUSE THERE'S. IF THERE'S AN ACTION TO FILL, THEN THAT'S PRETTY STRAIGHTFORWARD. WE TAKE THEM IN ORDER, BUT AN ACTION TO REMOVE AND REPLACE, JUST OPEN IT UP FOR DISCUSSION. 
          REPRESENTATIVE FROM DISTRICT TWO. >> THERE WE GO. 
          >> ALL RIGHT. THANK YOU. I ONE OF THE THINGS I SENT WHEN THE CITY SECRETARY NOMINATED OR ASKED FOR THESE INTEREST THINGS IS I KNOW GIVEN THE FACT THAT MAYOR PRO TEM AS A CITIZEN IS ALREADY ON MOBILITY, AS ONE OF THE CITIZEN POSITIONS, I'D BE WILLING TO STEP BACK AND TRANSFER HER OVER FROM THE CITIZEN POSITION BECAUSE SHE EXPRESSED INTEREST. I'D TAKE ONE 
          FOR THE TEAM ON THAT ONE. >> OKAY. ANYONE ELSE? ANY OTHER COMMENTS? 
          >> MAYOR? >> I'M JUST HEARING REPRESENTATIVE FROM DISTRICT 
          FOUR. >> I'D LIKE TO STAY ON MOBILITY, PLEASE. OKAY. 
          >> ANYONE ELSE THOUGHTS ON HOW TO PROCEED? REPRESENTATIVE SIX. >> MY REASONING IS WITH MY POSITION AT THE REGIONAL TRANSPORTATION COUNCIL, WHICH LOOKS LIKE IT WILL HOPEFULLY CONTINUE BEING PART OF THE MOBILITY COMMITTEE SEEMS APPLICABLE AND NECESSARY IN ORDER TO MAKE GOOD DECISIONS ON THE LARGER LEVEL. HOWEVER, YOU KNOW, I CERTAINLY UNDERSTAND THERE ARE A LOT OF PEOPLE INTERESTED, BUT THAT WAS MY REASONING FOR PUTTING MY NAME 
          FORWARD. >> GOT IT. >> ANY OTHER THOUGHTS ON. REALLY 
          LOOKING FOR? >> DO YOU NEED A MOTION, MR. MAYOR? 
          >> NO, BECAUSE I DON'T KNOW THAT WE CAN MAKE A MOTION TO REMOVE SOMEONE, RIGHT? SO. SO IT'S REALLY ABOUT HOW TO. I'M LOOKING FOR DIRECTION AS TO HOW TO A PROCESS BECAUSE IT'S GOING TO HAVE TO APPLY TO A LOT OF THESE. SO I'M TRYING TO FLUSH OUT A PROCESS THAT WE CAN SAY. HERE'S HOW WE'RE GOING TO DO THIS OTHER THAN ROCK, PAPER, SCISSORS, WHICH I'M A BIG FAN OF, BUT I JUST DON'T KNOW THAT IT TRANSLATES WELL IN THE MINUTES. SO SUGGESTIONS? SEEING NONE, I. 
          MR. CITY ATTORNEY I. YOU HAVE THOUGHTS I DON'T I MEAN BEFORE I YOU KNOW WE I PICKED AND THAT 
          FELL APART A LONG TIME AGO SO. >> RIGHT I MEAN THAT WAS A PROCESS. AT ONE TIME THE MAYOR KIND OF PUT TOGETHER A LIST AND TWEAKS AND ADJUSTMENTS WERE MADE. YOU ALWAYS HAVE THAT OPTION TO GO BACK TO. BUT BEYOND THAT, NO, IT'S JUST A MATTER OF PROCEDURE. HOWEVER, COUNCIL WANTS TO GET THERE. I MEAN, I THINK IT SOUNDS LIKE THERE MIGHT BE A DIFFERENT NUMBER ON EACH BOARD. I MEAN, IF COUNCIL WANTS TO SAY, SHOULD WE SET A NUMBER OF BOARDS BEFORE WE START 
          [00:15:05]
LETTING ONE PERSON HAVE TOO MANY? I THINK THERE'S SOME AREAS FOR THAT TYPE OF DISCUSSION WHICH MIGHT NARROW IT DOWN A LITTLE EASIER. INSTEAD OF HAVING NAMES THROWN OUT THERE FOR ALL THE DIFFERENT BOARDS, YOU COULD START TO GET TO SOMETHING A LITTLE MORE NARROW. 
          >> CERTAINLY. ALL RIGHT. SO. YEAH, I'D BE OPEN TO DISCUSSION OR THAT I'LL JUST PICK I'LL GET IT STARTED FOR SURE AND GIVE A LIST. SO REPRESENTATIVE DISTRICT ONE. 
          >> I'VE CHOSEN TO STAY ON ALL BUT ONE OF THOSE BOARDS BECAUSE OF MY HIGH NEED FOR CONTINUITY. 
          YOU KNOW, JUST HAVING EXPERIENCE WITH THESE NUMBER OF YEARS OF SEEING THE PROGRESS THAT THESE BOARDS HAVE GONE THROUGH, THE ONES THAT I'VE, THAT I'VE CHOSEN TO STAY ON. SO I WOULD PREFER TO STAY ON THOSE. I'VE BEEN ON THE SAME BOARDS FOR A NUMBER OF YEARS. AND, YOU KNOW, JUST FOR ME, IT'S JUST A MATTER OF FACT THAT I APPRECIATE STAYING ON ALL OF MY BOARDS. 
          >> REPRESENTATIVE DISTRICT TWO. >> THANK YOU. SIMILAR SIMILAR LOGIC. IT DOVETAILS TO WHAT I SAID A SECOND AGO TO ALLOWING MAYOR PRO TEM TO STAY ON, BUT GOES TO THE CITY ATTORNEY'S POINT, ABOUT NUMBER OF NUMBER OF BOARDS. I'M I'M WILLING TO STEP OUT OF THAT POSITION AND CREATE A HOLE FOR THE CONTINUITY SAKE KIND OF ARGUMENT FOR MAYOR PRO TEM. THAT WAY YOU HAVE THE CONTINUITY FROM POINT TO POINT, BUT THEN YOU ALSO CREATE A HOLE. SO THAT WAS MY LOGIC THERE. 
          >> ALL RIGHT. SO. I'M GOING TO GIVE YOU THREE NAMES. WHAT DO WE NEED. WE NEED YES. SO WE CAN'T 
          VOTE. >> FOR DIRECTION. >> THE DIRECTION. 
          >> WE'LL COME BACK WITH WHATEVER THE DIRECTION IS FOR A VOTE. >> GOT IT. AND SO HOW DO PEOPLE RESPOND TO THE NAMES I PUT OUT. LIKE HOW DO THEY SAY, NO, THAT'S NOT GOOD. 
          >> IT'S UP TO YOU, MAYOR. I MEAN, ONE OPTION WOULD BE JUST SPEAK UP IF YOU HAVE A PROBLEM WITH IT, OKAY? OR IF SOMEONE IF WE JUST CAN'T DECIDE HERE, WE CAN'T GET DIRECTION. WE'LL HAVE TO JUST BRING IT BACK TO COUNCIL WITH THE TWO NAMES. AND YOU'LL JUST HAVE TO VOTE ON WHICHEVER ONE FIRST. IF IT DOESN'T PASS, YOU HAVE TO PASS ON THE OTHER NOMINEES. SO YEAH, WE'RE LOOKING AND HOPING FOR DIRECTION HERE TODAY. IF WE CAN'T GET IT, WE'LL BRING IT BACK. YOU'LL HAVE TO 
          MAKE A DECISION AT THE NEXT MEETING. >> YEAH, YOU'RE ON TO SOMETHING. 
          SO WE'LL JUST. REPRESENTATIVE DISTRICT SIX. >> I APOLOGIZE FOR THE INTERRUPTION. I JUST WANTED TO NOTE THAT I CAN. I BELIEVE I CAN STILL ATTEND THE MEETINGS EVEN IF I'M NOT ON THE BOARD. SO IF IT CREATES A PROBLEM FOR PEOPLE OR PROBLEM FROM THE BOARD, I'M 
          HAPPY TO. I'M SORRY. >> I'M SORRY. BUT AS THIS IS ALREADY A THREE COUNCIL MEMBER 
          BOARD, WE WOULD EXCEED QUORUM AT THAT POINT. >> OKAY. SORRY, I WAS TRYING TO 
          HELP. >> THANK YOU. >> GOT IT. THANK YOU. 
          >> OKAY. YEAH. NO. THEN WE LET'S JUST NOTE THE NAMES. AND UNFORTUNATELY, I DON'T SEE A PATH FORWARD TO FIX IT HERE OTHER THAN, YOU KNOW. SO LET'S WE'LL HAVE TO DO IT LIVE WHERE WE CAN VOTE. SO IF YOU COULD. SO I'LL CHECK MY NOTES AGAINST YOURS. RIGHT. AND THEN WE'LL BRING IT BACK AND WE'LL JUST GO IN ORDER. WE'LL JUST GO. ONCE WE GET TO THIS POINT IN ON JULY 15TH WE'LL GO IN DISTRICT ORDER. AND VOTE. RIGHT. SO, SO IF THAT IF THAT PERSON AND WE'LL, WE'LL STAGGER THAT. RIGHT. SO IT'S ONE AND THEN TWO, THEN THREE. BUT SO FOR EXAMPLE WHAT I'M THINKING IS MOBILITY COMMITTEE THERE DISTRICTS. ONE, TWO, FOUR, THREE AND SIX ARE THERE. SO WE WOULD JUST IN ORDER OF HOW YOU HAVE THEM LAID OUT, THAT FIRST ONE WOULD START WITH DISTRICT ONE, VOTE, TWO VOTE, AND THEN THE NEXT. SO THE NEXT ONE WOULD BE THE DEVELOPMENT CODE REVIEW COMMITTEE. AND THERE'S SIX PEOPLE THAT WANT TO SERVE ON THERE. AND SO WE'D START WITH DISTRICT TWO VOTE. THREE VOTE. ET CETERA. ET CETERA. SO IT'LL BE JUST RANDOM AS WE CAN. AND THEN THE BODY CAN DECIDE THAT WAY. AND SO THEY'LL THEY'LL HAVE SOME PREDICTABILITY OF WHO'S NEXT AND CAN KIND OF WORK THROUGH THE QUEUE. AND SIMILARLY MY THOUGHT IS IF SOMEONE EMAILED YOU OF INTEREST, WELL, THAT'S NOT FAIR. WE'LL FIGURE OUT THAT PART. MAYBE, YOU KNOW, FROM FROM HOW TO CUE THE NAMES. WE'LL FIGURE THAT OUT BECAUSE THE MAYOR PRO TEM DIDN'T HAVE THE OPPORTUNITY TO EMAIL IN. RIGHT. SO GOT TO BE FAIR THERE. SO WE'LL FIGURE IT OUT. BUT SO HERE'S WHAT I HAVE. ONE SECOND. MOBILITY COMMITTEE. THERE'S THE THREE THAT ARE THERE. 
          COUNCILMEMBER. COUNCILMEMBER BECK, COUNCILMEMBER HOLLAND. IN ADDITION TO COUNCILMEMBER JESTER 
          [00:20:04]
AND MAYOR PRO TEM, THEN IN THE DEVELOPMENT REVIEW CODE REVIEW COMMITTEE, THERE'S COUNCILMEMBER BECK, COUNCILMAN BYRD, AND THEN THERE'S A VACANCY AND THERE'S REQUESTING COUNCILMEMBER, COUNCILMEMBER, AND MAYOR PRO TEM. AND THEN THERE'S THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD IN CONJUNCTION WITH TERS NUMBER TWO. AND. THERE'S THREE PEOPLE FOR TWO SEATS. THAT'S COUNCILMEMBER, JESTER, COUNCILMEMBER, COUNCILMEMBER BECK. AND THEN. TERS NUMBER ONE IS WE CAN YOU HAVE DIRECTION THERE. YOU WOULD ADD COUNCILMEMBER HOLLAND. AND NO ONE ELSE HAS EXPRESSED INTEREST SO THAT YOU HAVE DIRECTION THERE. AND THEN THAT'S IT. YEAH. 
          SO REPRESENTATIVE FROM DISTRICT ONE. >> I WAS JUST GOING TO EXPRESS JUST THE ACKNOWLEDGMENT THAT, YOU KNOW, IF WE GO THAT ROUTE AND, YOU KNOW, GO ONE AND THEN GO TWO, THAT THAT'S GOING TO AFFECT HOW IS THAT GOING TO AFFECT WHEN THE MEMBER IS RELEGATED TO TWO COMMITTEES, LIKE DEVELOPMENT CODE REVIEW IS ALSO ON, YOU KNOW, ANOTHER COMMITTEE REQUIRED TO BE ON ANOTHER COMMITTEE. YOU KNOW, JUST WHEN YOU KNOW, WHEN YOU HAVE TO BE ON TWO OF THEM WHEN THEY'RE CONNECTED, HOW IS THAT GOING TO PLAY OUT THERE? YOU KNOW, BY MAKING SURE THAT THAT PERSON GETS ON BOTH OF THOSE PARTICULAR COMMITTEES. HOW IS 
          THAT GOING TO WORK? >> SO THERE'S NO DISCRETION IN THAT, OKAY. WHOMEVER IS ELECTED OR SELECTED FOR THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD, THAT'S AN AUTOMATIC MEMBERSHIP ON TERS TWO. THAT'S NOT A DISCRETIONARY THAT'S SET FORTH IN THE ESTABLISHING ORDINANCE. 
          >> OKAY. >> YEAH. SO THE IF YOU IF YOU THAT'S EYES WIDE OPEN. SO IF YOU PUT YOURSELF IN THAT CONSIDERATION FOR ECONOMIC DEVELOPMENT, IT IS TIED TO TERS TWO. YEAH. SO THEY EYES. YEAH. CLARIFICATION OKAY THEN. SO THEN THAT TAKES US TO DALLAS REGIONAL MOBILITY COMMITTEE. I KNOW THE CITY MANAGER AND I TALKED AND STAFF WILL BE ATTENDING THOSE MEETINGS WHEN I CAN. I DO BELIEVE BUT THEN ALSO FOR ALTERNATE HAPPY TO. NOMINATE. 
          MAYOR. SO COUNCILMAN JESTER SO TO HAVE. A LOT OF THOSE SAME PEOPLE SAME CONVERSATIONS. SO THAT MAKES SENSE TO HAVE THAT. AND THAT'S ONE THAT CAN BE ATTENDED WHENEVER AS WELL. SO SHE CAN SIT IN AND BE UP TO SPEED ON THOSE THINGS AS NEEDED. THEN THAT TAKES US TO DISCOVER 
          DENTON ADVISORY. YOUR THOUGHTS THERE. WHAT ARE WE LOOKING AT? >> SO DISCOVER DENTON ADVISORY IS COMING OUT OF OUR COMMUNITY PARTNERSHIP COMMITTEE. SO BECAUSE COUNCIL MEMBERS HOLLAND AND BYRD BOTH INDICATED THAT THEY WOULD LIKE TO STAY ON THAT BOARD, AND THEY ARE THE MEMBERS ON DISCOVER DENTON AS RELATED TO COMMUNITY PARTNERSHIP, THAT I BELIEVE THAT THAT WOULD AUTOMATICALLY FILL. I DON'T THINK WE NEED ANYTHING THERE, BUT THAT THIRD POSITION MUST 
          REMAIN VACANT. >> OKAY. >> AND THEN NTC. YEAH, I WOULD I WOULD THINK THAT STAYS THE SAME, ESPECIALLY WITH THE. COUNCILMEMBER JESTER BEING AN 
          OFFICEHOLDER. THAT TO ME MAKES SENSE. >> OKAY. 
          >> AND AGENDA COMMITTEE IS SET. >> YES, SIR. >> GOT IT. 
          >> AND THEN THE REST OF THESE THESE ARE NO ACTION REQUIRED SO I CAN PUT THEM ON THE SCREEN FOR YOU TO SEE. BUT OUR OUR TERMS ARE NOT EXPIRING AT THIS TIME. I WILL POINT OUT DENTON COUNTY TRANSPORTATION AUTHORITY BECAUSE I DID RECEIVE SOME FEEDBACK ON THAT. BUT THAT'S GOING TO BE COMING IN FRONT OF YOU LATER IN THE YEAR AS IT'S NOT EXPIRING UNTIL NOVEMBER. THAT'S THAT. 
          >> OKAY. >> ANYTHING ELSE FOR STAFF? ANY DIRECTION? REPRESENTATIVE 
          DISTRICTS. >> COUNCILPERSON JESTER WOULD IT BE APPROPRIATE? AND MAY WE REQUEST A LIST OF THOSE OUTSTANDING COMMITTEES OR BOARDS AND THE LIST OF THOSE THAT WERE INTERESTED, SO THAT WE CAN MAYBE WEIGH AND SEE, WOW, MAYBE THIS PERSON IS A BETTER FIT AND I SHOULD STEP DOWN VERSUS THIS ONE. MAYBE I SHOULD MAKE A CASE FOR IT. JUST MIGHT BE HELPFUL IF 
          WE CAN HAVE THAT INFORMATION. UNLESS THERE'S ANY OBJECTION. >> NO, I THINK YOU CAN. YEAH. 
          [00:25:05]
          >> THANK YOU. THANK YOU SO MUCH. APPRECIATE YOUR HELP. >> ANYTHING ELSE FOR STAFF? 
          >> MAYOR. >> REPRESENTATIVE DISTRICT FOUR. >> WHO WAS THE OTHER MEMBER OF 
          TOURS? NUMBER ONE. >> TOURS NUMBER ONE IS. LET ME GET BACK THERE. SORRY. 
          >> IT STARTS WITH A B. START WITH AB1. >> THAT'S IT. MIGHT BE ME. 
          >> IT IS ME. >> YEAH. YES. COUNCIL. HE'S. >> YEAH. THANK YOU. YEAH. 
          ANYWAY. OKAY. OKAY. ALL RIGHT. >> GREAT. THANK YOU VERY MUCH. >> APPRECIATE IT. THANK YOU. 
          [B. Receive a report, hold a discussion, and give staff direction regarding a recap of the 89th State Legislative Session and the City’s State Legislative Program priorities. 
    [Estimated Presentation/Discussion Time: 30 minutes]]
          >> THAT TAKES US TO ITEM B I'D 251043 RECEIVE REPORT DISCUSSION GIVE STAFF DIRECTION REGARDING A 
          RECAP OF THE 89TH STATE LEGISLATIVE SESSION. >> GOOD AFTERNOON, MAYOR AND COUNCIL CHRISTY FOGLE CHIEF OF STAFF. BEFORE WE GET STARTED TODAY, I DO JUST WANT TO RECOGNIZE TREY WÖRSDORF WITH HANCE SCARBOROUGH. OUR LEGISLATIVE CONSULTANT IS HERE. 
          AND TODAY I'LL BE SHARING WITH YOU A HIGH LEVEL RECAP OF THE LEGISLATIVE SESSION, INCLUDING SOME OF THE BILLS RELATED TO THE CITY'S LEGISLATIVE PROGRAM THAT PASSED AND FAILED. WE'RE JUST ABOUT TWO WEEKS FROM THE END OF THE LEGISLATIVE SESSION, SO A LOT OF THIS INFORMATION IS STILL PRELIMINARY. WE'RE AWAITING THE END OF THE GOVERNOR'S VETO PERIOD ON JUNE 22ND, AS WELL AS MATERIALS FROM OUR PARTNERS LIKE HTML REGARDING CITY RELATED LEGISLATION. SO I'LL BE PROVIDING ADDITIONAL INFORMATION THROUGH AN ISR IN THE UPCOMING WEEKS WITH MORE DETAILS ON THE BILLS WE'RE DISCUSSING TODAY. BEFORE WE GET STARTED, I WANT TO REFERENCE BACK TO THE GOALS THAT WE SET AT THE BEGINNING OF SESSION. THIS ONE WAS A SESSION OF FIRSTS. WE HAD SEVERAL NEW STATE REPRESENTATIVES. THIS WAS MY FIRST SESSION WITH THE CITY. THIS WAS HANS SCARBOROUGH'S FIRST SESSION WITH THE CITY, SO A HUGE FOCUS WAS PLACED ON BUILDING OUR RELATIONSHIPS IN AUSTIN. WE WORKED WITH OUR CONSULTANT TO PROMOTE THE CITY'S LEGISLATIVE PROGRAM THROUGH MEETINGS WITH OUR LOCAL DELEGATION MEMBERS AND OTHER LEGISLATIVE LEADERS, WE REGISTERED SUPPORT AND OPPOSITION FOR BILLS THAT WERE REFLECTED IN OUR LEGISLATIVE PROGRAM, AND WE KEPT IN CONSTANT CONTACT WITH OUR LEGISLATORS AND THEIR STAFF. I ALSO WANTED TO ENGAGE WITH COUNCIL AND STAFF AT A HIGHER LEVEL THAN PREVIOUS SESSIONS. YOU RECEIVED WEEKLY EMAILS FROM ME WITH BRIEF NOTES FROM THE WEEK'S ACTIVITIES AND THE BILLS THAT WERE MOVING THROUGH THE LEGISLATIVE PROCESS, AND WE COORDINATED WITH OUR DEPARTMENT STAFF TO ENSURE THAT RESPONSES AND POSITIONS ON BILLS REFLECTED THE TRUE IMPACT OF LEGISLATION ON THE CITY'S WORK. 
          FOR ME, THIS SESSION WAS ABOUT LAYING THE GROUNDWORK, BUILDING OUR RELATIONSHIPS IN AUSTIN, AND SETTING OURSELVES UP FOR EVEN MORE ENGAGEMENT AND SUCCESS IN THE FUTURE. THE FINAL NUMBERS FOR THE SESSION, OVER 8000 BILLS WERE FILED, AND ONLY ABOUT 12,000 PASSED OR WERE SENT TO THE GOVERNOR. THAT REFLECTS THE LOWEST PASSAGE RATE SINCE 1991. WE TRACKED 711 BILLS AND REGISTERED SUPPORT AND OPPOSITION ON 32. THAT DOESN'T MEAN WE DIDN'T ENGAGE WITH LEGISLATORS ON THE OTHER 160 BILLS THAT WERE HEARD IN COMMITTEE, BUT THOSE WERE THE ONES THAT DIRECTLY RELATED TO OUR LEGISLATIVE PROGRAM. BY AND LARGE, THE GOVERNOR'S THE GOVERNOR ACCOMPLISHED ALL OF HIS EMERGENCY ITEMS THIS SESSION. A QUICK RECAP OF THOSE HJR ONE AND HB NINE INCREASES THE PROPERTY TAX EXEMPTION FROM $2500 TO $125,000. THIS WILL APPLY TO CITIES, COUNTIES, AND SCHOOL DISTRICTS. THE H.J.R AND WILL GO TO THE CONSTITUTION OR WILL GO TO THE VOTERS IN NOVEMBER AS CONSTITUTIONAL AMENDMENTS, AND S.R. TWO AND SB FOUR INCREASES THE HOMESTEAD EXEMPTION FROM 100,000 TO 140,000, WHICH WILL ONLY IMPACT SCHOOL DISTRICTS. 
          THEY ALSO MADE HISTORIC INVESTMENTS IN TEXAS'S WATER SUPPLY. HDR SEVEN WILL GO TO THE VOTERS IN NOVEMBER, AND WOULD DEDICATE $1 BILLION A YEAR FOR THE NEXT 20 YEARS, AND FUNDING WILL BE SPLIT EVENLY BETWEEN ADDRESSING WATER INFRASTRUCTURE, FRAGILITY AND NEW WATER SUPPLY PROJECTS. WE'RE WE'RE HOPING THAT THIS WILL TRICKLE DOWN TO LOCAL GOVERNMENTS AND THEY'LL BE GRANT AND LOAN OPPORTUNITIES FOR US IN THAT REGARD. INCREASING TEACHER PAY HB TWO WAS A HISTORIC $8.5 BILLION INVESTED IN PUBLIC SCHOOLS, INCLUDING TEACHER PAY AND OPERATIONAL 
          [00:30:01]
EXPENSES, AND THEN EXPANDING CAREER TECHNOLOGY TRAINING. EXPAND OR CREATES A NEW APPLIED SCIENCES PATHWAY PROGRAM, THE TEXAS CYBER COMMAND, AND SOME ADDITIONAL FUNDING FOR COLLEGE AND CAREER READINESS. HIS GOVERNOR'S EMERGENCY ITEMS CONTINUED. HE HAD SET SB TWO AS THE EDUCATIONAL SAVINGS ACCOUNTS WOULD START IN THE 2627 SCHOOL YEAR, AND ALLOCATES $1 BILLION FOR THE FIRST BIENNIUM. BAIL REFORM ESSER FIVE WILL GO TO THE VOTERS IN NOVEMBER AND WOULD REQUIRE JUDGES TO DENY BAIL FOR CERTAIN VIOLENT OFFENSES, AND THEN SB 40 HERE PROHIBITS MUNICIPALITIES FROM USING PUBLIC FUNDS TO BAIL DEFENDANTS OUT OF JAIL. THAT IS NOT SOMETHING THAT THE CITY OF DENTON HAS DONE IN THE PAST OR IS CURRENTLY DOING, SO THAT IS NOT GOING TO IMPACT US GREATLY. AND THEN ALSO CREATING THE TEXAS CYBER COMMAND TO PROTECT CRITICAL INFRASTRUCTURE FROM CYBER THREATS. SOME OTHER NOTABLE ITEMS THAT PASSED THIS SESSION THAT WILL BOTH INDIRECTLY AND DIRECTLY IMPACT THE CITY. SB THREE WOULD PROHIBIT THE SALE AND MARKETING OF HEMP DERIVED THC PRODUCTS. THIS IS AWAITING THE MAYOR OR THE GOVERNOR'S SIGNATURE AND WOULD GO INTO EFFECT ON SEPTEMBER 1ST. THE STATE AGENCIES, DEPARTMENT OF HEALTH SERVICES AND DEPARTMENT OF PUBLIC SAFETY WILL HAVE TO PROVIDE SOME ADDITIONAL INFORMATION FOR LOCAL GOVERNMENTS AND POLICE DEPARTMENTS ON HOW IMPLEMENTATION AND ENFORCEMENT OF THIS WOULD GO, AND IT IS LIKELY TO IMPACT SALES TAX REVENUES ACROSS THE STATE. SO WE'RE AWAITING THE GOVERNOR'S SIGNATURE OR ACTION ON THAT AT THIS TIME, SB EIGHT REQUIRES COUNTIES LARGER THAN 100,000 TO PARTICIPATE IN THE IMMIGRATION AND CUSTOMS ENFORCEMENT. 287 G PROGRAM. THIS DOES APPLY TO DENTON COUNTY, WHO HAS ALREADY SUBMITTED THE APPLICATION NECESSARY TO PARTICIPATE IN THIS PROGRAM. HB 21 IMPOSES NEW REGULATION AND OVERSIGHT OF HOUSING FINANCE CORPORATIONS. THIS ADDRESSES ISSUES RELATED TO WHERE HOUSING FINANCE CORPORATIONS CAN CONDUCT BUSINESS, BUT IT ALSO MODIFIES THEIR ELIGIBILITY FOR TAX EXEMPTION. SO WE'LL BE CLOSELY MONITORING THAT FOR IMPACT ON TAX REVENUES. AND THEN SB 3070 MOVES OVERSIGHT OF THE TEXAS LOTTERY COMMISSION TO THE DEPARTMENT OF LICENSING AND REGULATION. AND THEN A COUPLE OF BILLS THAT PASSED THAT WILL IMPACT US DIRECTLY. HB 1522 CHANGES THE LONG STANDING REQUIREMENT OF 72 HOURS NOTICE OF A MEETING, AND THE TEXAS OPEN MEETINGS ACT TO THREE BUSINESS DAY STANDARD. SO CURRENTLY, WE PUBLISH OUR AGENDAS FOR TUESDAY MEETINGS ON FRIDAYS THAT WOULD MOVE TO POTENTIALLY PUBLISHING ON TUESDAY OR WEDNESDAY BECAUSE IT WOULD HAVE TO BE THREE BUSINESS DAYS. AND THEN HB 762 RESTRICTS SEVERANCE PAYMENTS TO LOCAL GOVERNMENT EMPLOYEES AND CONTRACTORS TO 20 WEEKS OF PAY. 
          MOVING INTO THE BILLS RELATED TO OUR LEGISLATIVE PROGRAM, THERE WAS NOT A LOT OF MOVEMENT ON THE BILLS WE TRACKED RELATED TO COMMUNITY FOCUS. UNFORTUNATELY, REPRESENTATIVE BUMGARNER'S BUDGET AMENDMENTS RELATED TO MENTAL HEALTH WERE NOT ADOPTED INTO THE FINAL BUDGET, AND MENTAL HEALTH FUNDING IN GENERAL REMAINED RELATIVELY STAGNANT, WITH SOME FUNDING FROM THE AMERICAN RESCUE PLAN DROPPING OFF WITHOUT ANY ADDITIONAL FUNDS BEING ALLOCATED. BUT ON A POSITIVE NOTE, SB 19, WHICH WOULD HAVE RESTRICTED OUR ABILITY TO CONTRACT WITH LEGISLATIVE CONSULTANT, PASSED THE SENATE AND THEN DIED IN THE HOUSE. UNDER CITY SERVICES. TWO OF THE THREE LIBRARY BILLS FAILED TO PASS, LEAVING ONLY SB 412, WHICH HAS BEEN SIGNED BY THE GOVERNOR. THIS BILL REVISES THE CONDITIONS OF AFFIRMATIVE DEFENSE FOR LIBRARIANS AND REMOVES THE DEFENSE FOR EDUCATIONAL PURPOSES. OUR LIBRARY AND LEGAL STAFF HAVE ALREADY BEGUN MEETING ON THE IMPACT OF THIS, AND THIS IS ALSO ONE THAT MAY HAVE SOME LEGAL CHALLENGES RELATED TO IT IN THE FUTURE. HB 1227 WOULD HAVE LIMITED OUR SOLID WASTE FRANCHISE FEES TO 2% OR LESS. THE CITY CURRENTLY LEVERAGES A 5% SOLID WASTE FEE. THIS IS A BILL THAT WE OPPOSED IN COMMITTEE, AND IT DID NOT PASS OUT OF A COMMITTEE HEARING. AND THEN HB 3458, THE ETHICAL PET SALES BILL BY REPRESENTATIVE PATTERSON, UNFORTUNATELY DIED ON THE HOUSE BILL DEADLINE FOR THE SECOND SESSION IN A ROW. LAND USE AND DEVELOPMENT. THE LEGISLATURE, AS IN PREVIOUS SESSIONS, CONTINUES TO PREEMPT CITIES ABILITY TO REGULATE LAND USE AND DEVELOPMENT. THIS YEAR, THERE WAS A FOCUS RELATED TO ADDITIONAL HOUSING, BOTH SINGLE AND MULTI-FAMILY, AND CITIES PROVIDING MUNICIPAL SERVICES WITHIN AREAS WHERE THEY WERE 
          [00:35:03]
PREVIOUSLY ANNEXED, AND SERVICES DO NOT EXIST. STAFF WILL HAVE TO MAKE SEVERAL AMENDMENTS TO THE DENTON DEVELOPMENT CODE AND ALIGN WITH STATE STATUTES. SO GOING THROUGH THESE QUICKLY, SB 1844 MODIFIES PETITION REQUIREMENTS FROM THE MAJORITY OF QUALIFIED VOTERS TO MAJORITY OF PROPERTY OWNERS FROM A SPECIFIED AREA TO PETITION FOR ANNEXATION, AND EXPANDS THE AREA'S ELIGIBLE. IF THE CITY DOES NOT PROVIDE FULL MUNICIPAL SERVICES. HB 24 ADDS NEW PROVISIONS FOR COMPREHENSIVE ZONING ORDINANCES AND ALSO CHANGES THE MAJORITY REQUIREMENT TO SIMPLE MAJORITY. FOR MOST ZONING CASES. HB 2844 SIGNIFICANTLY PREEMPTS THE CITY'S ABILITY TO REGULATE FOOD TRUCKS, INCLUDING PLACEMENT AND OPERATIONS, AND PLACES HEALTH INSPECTIONS PRIMARILY AT THE STATE LEVEL. THIS WILL LIKELY NEED TO BE A DDC AND CODE OF ORDINANCES CHANGE AS WELL. SB 15 PROHIBITS CITIES FROM ADOPTING RESIDENTIAL ZONING REQUIREMENTS THAT REQUIRE LOTS LARGER THAN 3000FT■!S AND NEW DEVELOPMENTS FIVE ACRES AND LARGER. AND THE CITY SENT A LETTER TO THE GOVERNOR REQUESTING THAT THIS BILL BE VETOED. THIS BILL WOULD REQUIRE SIGNIFICANT UPDATES TO THE DEVELOPMENT CODE FOR RESIDENTIAL ZONING, AND OVER THE NEXT FEW YEARS, SB 785 REQUIRES ALLOWING HUD CODE MANUFACTURED HOMES WITHIN THE CITY BY RIGHT AND AT LEAST ONE RESIDENTIAL ZONING DISTRICT. THIS WOULD REQUIRE AMENDMENTS TO THE DEVELOPMENT CODE SB 840. THIS IS THE OTHER BILL THAT WE SENT A LETTER TO THE GOVERNOR REQUESTING IT BE VETOED. IT WOULD REQUIRE CITIES TO ALLOW MULTIFAMILY BY RIGHT AND DISTRICTS THAT PERMIT OFFICE, COMMERCIAL, RETAIL, WAREHOUSE OR MIXED USE DEVELOPMENTS. SB 1567 PREEMPTS CITIES FROM REGULATING THE NUMBER OF UNRELATED PERSONS IN A DWELLING UNIT. THIS WILL REQUIRE AN AMENDMENT TO THE DDC TO REMOVE EXISTING STANDARDS REGARDING THE NUMBER OF UNRELATED PERSONS OCCUPYING A DWELLING, AND THEN SB 1883 WOULD REQUIRE THE CITY TO AMEND ORDINANCES TO ESTABLISH A NEW CAPITAL IMPROVEMENTS ADVISORY COMMITTEE, AS THE PNC WOULD NO LONGER BE ELIGIBLE TO SERVE IN THIS CAPACITY. ON A POSITIVE NOTE. SB 1173 PASSED OUT OF THE HOUSE AND SENATE AND WAS SIGNED INTO LAW AND INCREASES THE COMPETITIVE BIDDING THRESHOLD. 
          THIS WILL GIVE THE CITY A LOT MORE FLEXIBILITY TO PAY FOR GOODS AND SERVICES UNDER $100,000, SB 1851 IMPOSES FINANCIAL POLICY, OR PENALTIES ON CITIES THAT FAIL TO CONDUCT AN AUDIT. AN ANNUAL AUDIT IS REQUIRED BY STATE LAW, AND THE CITY OF DENTON IS COMMITTED TO CONTINUING TO DO AN ANNUAL AUDIT, AND THEN HB NINE AND HCR ONE WE SPOKE ABOUT EARLIER. AND THEN ONE OF THE BIG BILLS THAT CITIES WERE REALLY CONCERNED ABOUT THIS SESSION WAS HB 19 FAILED TO PASS HOUSE COMMITTEE, AND IT WOULD HAVE SIGNIFICANTLY LIMITED OUR ABILITY TO LEVERAGE DEBT AND WOULD HAVE LIMITED THE USE OF CERTIFICATES OF OBLIGATION. WATER UTILITIES SB 480 WAS SIGNED BY THE GOVERNOR AND ALLOWS MUNICIPALITIES TO ENTER INTO AGREEMENTS WITH OTHER ENTITIES TO PARTICIPATE IN JOINT RESEARCH PLANNING. THIS WILL IMPROVE REGIONALIZATION. WE SPOKE BRIEFLY EARLIER ABOUT SEVEN AND SB SEVEN, AND THEN SB 1261 EXTENDS FINANCING FOR SWIFT LOANS FROM 30 TO 40 YEARS. SB 2885 CLARIFIES EXISTING LAW TO PROVIDE FOR THE USE OF RECLAIMED WATER, AND THEN SB 1253 REQUIRES MUNICIPALITIES TO USE CREDITS AGAINST IMPACT FEES FOR CERTAIN WATER CONSERVATION PROJECTS. THIS BILL WAS ORIGINALLY PERMISSIVE. IT WAS CHANGED THROUGH THE PROCESS TO BE REQUIRED THAT WE LEVERAGE THESE CREDITS, AND SO WE'RE STILL WORKING THROUGH WHAT THAT WILL LOOK LIKE FOR US. AND THEN I'LL TURN IT OVER TO TONY TO SPEAK A LITTLE BIT ABOUT SOME OF THE BILLS THAT PASSED ON THE ELECTRIC SIDE. 
          >> MAYOR COUNCIL, TONY, THE GENERAL MANAGER, FIRST OF ALL, WE WORKED VERY CLOSELY WITH CHRISTI AND THE VARIOUS PARTNERS ACROSS THE STATE, INCLUDING TEXAS PUBLIC POWER ASSOCIATION AND OUR SISTER MOU. JUST A COUPLE OF ITEMS HERE THAT I WANT TO TOUCH ON. KIND OF THE LAST TWO SB 715 THIS THIS IS ONE THAT WE'VE TALKED TALKED ABOUT BEFORE. THIS WOULD HAVE BEEN 
          [00:40:03]
FIRMING AND WOULD HAVE REQUIRED FIRMING OF ALL RENEWABLE RESOURCES THAT ARE ALREADY EXISTING. JUST AS A REMINDER, IN THE 88TH LEGISLATURE, HB 1500 ACTUALLY REQUIRES THAT ALL RENEWABLE RESOURCES FIRM THEIR LOAD AFTER JANUARY 1ST OF 2027. SO THAT'S ANY NEW RESOURCES AFTER 2027 WILL BE REQUIRED TO FIRM THOSE. SO THEY'RE GOING TO HAVE TO HAVE DISPATCHABLE GENERATION BEHIND IT TO GUARANTEE THE POWER THAT THAT THEY SAID THAT THEY'RE GOING TO COMMIT. BUT FOR OUR PURPOSES, THIS KEEPS OUR EXISTING PPA FOR RENEWABLES INTACT. THEY'RE NOT REQUIRED TO FIRM AT THIS TIME. HB 388. THIS IS ANOTHER BILL THAT WE'VE BEEN MONITORING. THIS IS CALLED THE DISPATCHABLE GENERATION TRADING PROGRAM. THIS WOULD HAVE LIMITED NEW WIND AND SOLAR RESOURCES TO NO MORE THAN 50% OF ALL NEW GENERATION COMING INTO THE STATE. AND IT WOULD HAVE ALSO REQUIRED LOAD SERVING ENTITIES LIKE DME TO FIRM THEIR LOAD. AND SO I KNOW THOSE ARE THINGS THAT WE'RE GOING TO BE TALKING ABOUT LATER TODAY, BUT WE'VE ALSO TALKED ABOUT IN THE PAST. THE OTHER ITEM THAT I'LL MENTION HERE IS SB SIX. WE'VE TALKED ABOUT LARGE LOADS. THIS DOES NOW REQUIRE THE LARGE LOADS BEYOND 75MW. PENDING PUC RULES BASICALLY COVER ALL OF THEIR COSTS TO INTERCONNECT, AND ALSO ANY SYSTEM STUDIES THAT HAVE TO BE MADE JUST FOR YOUR KNOWLEDGE. 
          THAT'S SOMETHING THAT WE ALREADY REQUIRED HERE IN THE CITY OF DENTON FOR ANY LARGE LOADS THAT WE HAVE. AND THEN FINALLY NOT NOT LISTED ON HERE A COUPLE OF OTHER ITEMS THAT WE DIDN'T INCLUDE. SB 482 IS ACTUALLY A BILL THAT WILL NOW IMPOSE CRIMINAL PENALTIES ON ANYONE THAT ASSAULTS OR HARASSES UTILITY LINE WORKERS DURING DISASTER OPERATIONS THAT HAPPENED IN HOUSTON, HAPPENED IN FORT WORTH. AND SO CERTAINLY FOR OUR EMPLOYEES, THAT'S JUST NOT ACCEPTABLE. WE'RE ACTUALLY VERY GLAD THAT THIS BILL THAT THAT CAME THROUGH SB 1036, AS WELL AS ANOTHER BILL THAT THAT PASSED PENDING THE GOVERNOR'S SIGNATURE. THIS WILL REQUIRE ALL SOLAR INSTALLERS, SOLAR INSTALLATION SALESPEOPLE TO REGISTER WITH THE STATE. IT WILL ALSO CREATE A CUSTOMER BILL OF RIGHTS TO REALLY CUT DOWN ON ANY DECEPTIVE PRACTICES THAT HAVE HAPPENED ACROSS THE STATE. AND THEN FINALLY, HB 14 IS ANOTHER BILL THAT WOULD ESTABLISH WHAT'S CALLED THE TEXAS ADVANCED NUCLEAR ENERGY OFFICE. IN THE GOVERNOR'S OFFICE. CERTAINLY, WE'RE MONITORING THAT IT WOULD ALLOCATE $5.3 MILLION IN THE NEXT BIENNIUM TO RESEARCH AND ADVANCE NUCLEAR DEVELOPMENT IN THE STATE. SO WITH THAT, THAT THERE'S A FEW OTHER ITEMS ON HERE THAT I WON'T COVER. BUT CERTAINLY IF YOU HAVE QUESTIONS AT THE END, JUST LET ME KNOW. 
          >> OKAY. AND THEN IN ADDITION TO ALL THE BILLS FILED AND PASSED, THERE WILL BE 18 CONSTITUTIONAL AMENDMENTS SUBMITTED TO THE VOTERS IN NOVEMBER. THESE ARE JUST A FEW OF THE HIGHLIGHTS THAT WE HADN'T PREVIOUSLY PREVIOUSLY DISCUSSED. THERE WILL BE MORE INFORMATION ON THESE AMENDMENTS IN THE UPCOMING MONTHS, INCLUDING RECOMMENDATIONS FROM VARIOUS ORGANIZATIONS FOR VOTERS AND THEN FINALLY SAVING THE BEST FOR LAST HCR 86 BY REPRESENTATIVE HAYES, SPONSORED BY SENATOR PARKER, WAS SIGNED BY THE GOVERNOR, OFFICIALLY NAMING DENTON HALLOWEEN DENTON HALLOWEEN CAPITAL OF TEXAS. SO WE WANT TO SEND A HUGE THANK YOU TO THEM AND THEIR STAFF FOR THEIR WORK ON THAT. THIS DESIGNATION WILL ENSURE THAT DENTON HALLOWEEN WILL BE CELEBRATED FOR MANY YEARS TO COME, AND THEN JUST SOME FINAL STEPS. LIKE I SAID AT THE BEGINNING, THE GOVERNOR'S VETO PERIOD WILL END ON JUNE 22ND. 
          ANY BILLS NOT SIGNED OR VETOED WILL BECOME LAW ON THEIR EFFECTIVE DATE. SO FAR, HE'S ONLY VETOED TWO BILLS. BUT IN A PRESS CONFERENCE LAST WEEK, HE ALLUDED TO THERE BEING MORE COMING. SO AND THEN STAFF WILL BE ATTENDING THE LEGISLATIVE BRIEFING ON JUNE 27TH. AND WE'LL HAVE ADDITIONAL UPDATES AND MORE INFORMATION ON LEGISLATION IN THE UPCOMING WEEKS. WE'LL ALSO BE WORKING ON THE IMPLEMENTATION OF NEW LEGISLATION AND ANYTHING REQUIRING COUNCIL DIRECTION OR CONSIDERATION WILL BE BROUGHT FORWARD. AND THEN SOMETIME THIS FALL, THE SPEAKER AND LIEUTENANT GOVERNOR WILL ISSUE INTERIM CHARGES AND STAFF AND OUR CONSULTANT WILL BE ENGAGING THE DELEGATION AND STATE AGENCIES IN THAT PROCESS AS WELL. WITH THAT, I'M HAPPY TO TAKE ANY QUESTIONS 
          YOU HAVE. >> THANK YOU. THANK YOU. QUESTIONS FOR STAFF 
          REPRESENTATIVE FROM DISTRICT TWO. >> HATES ME. THERE WE GO. 
          >> SO IN ONE OF MAYOR PRO TEM QUESTIONS WAS THE BUDGET. SO I'D LIKE A LITTLE MORE COLOR ON THE PROJECTED IMPACTS ON THE BUDGET. I BELIEVE YOU TOLD HER ABOUT HALF $1 MILLION FOR BOTH THE 
          [00:45:02]
DEBT FUND AND THE OTHER ONE, THE GENERAL FUND. SO. AND WHEN WILL YOU KNOW AND WHEN WILL WE GET A WHAT TIME FRAME WILL WE GET A BETTER PICTURE ABOUT WHEN THAT WILL FIRM UP AND WHAT WE ALL 
          KNOW WHAT THE IMPACTS OF THESE ARE. >> FOR SPECIFICALLY THE. 
          >> THE REVENUE. PROPERTY TAXES. >> CORRECT. YEAH. SO THAT WILL DEPEND ON THE PASSAGE OF HJR ONE, WHICH WILL GO TO THE VOTERS IN NOVEMBER AND THEN THE EFFECTIVE DATE OF THAT BILL, IF 
          PASSED BY THE VOTERS, WOULD BE JANUARY 1ST, 2026. >> OKAY. 
          >> AND SO FOR THE BUDGET THAT I'M SLIGHTLY AHEAD OF THE TOPIC, BUT FOR THE BUDGET DISCUSSIONS LATER, WE WILL WE WILL HAVE THAT IN THE 26 BUDGET DISCUSSIONS, NOT IN THE 25 BUDGET 
          DISCUSSIONS. CORRECT? >> CORRECT. >> OKAY. 
          >> ALL RIGHT. >> AND DO WE HAVE A SIMILAR QUESTION BUT MORE PROCEDURAL? DO WE HAVE A TIMETABLE FOR THE THINGS THAT HAVE PASSED AND ARE LIKELY TO PASS IN SEPTEMBER OR BE SIGNED BY THE GOVERNOR? DO WE KNOW FOR THOSE VARIOUS DEVELOPMENT CODES HOW LONG IT'S GOING TO TAKE STAFF TO FIGURE OUT WHERE WHERE THOSE ARE GOING TO LAND AND WHAT WHAT THE 
          TIMEFRAMES FOR THOSE ARE GOING. >> TO BE. WE'RE ALREADY STARTING TO WORK ON GETTING ALL OF THOSE BILLS COMPILED AND SENT OUT TO DEPARTMENTS. THEY WILL BE WILL BE WORKING WITH DEPARTMENTS TO ENSURE THAT IMPLEMENTATION HAPPENS BEFORE THE EFFECTIVE DATE OF THE BILL. MOST OF THOSE 
          IS SEPTEMBER 1ST, SO WE'LL BE WORKING THIS SUMMER TO DO THAT. >> ALL RIGHT. 
          >> I APPRECIATE THAT. THANK YOU. THAT'S ALL MY QUESTIONS. >> ANY OTHER QUESTIONS FOR STAFF 
          REPRESENTATIVE FROM DISTRICT FIVE? >> IF YOU. 
          >> DON'T MIND I'M GOING TO GO TO TONY FIRST IN REVERSE ORDER, IF THAT'S ALL RIGHT. TONY LOOKING AT HOUSE BILL 144 AND SENATE BILL 1889, I'M CURIOUS WHAT THE COST IS GOING TO BE TO US. HOW 
          MANY POLLS DO WE HAVE THROUGHOUT THE CITY? >> SO THE GOOD NEWS IS WE'VE ALREADY DONE AN INSPECTION. WE DID AN INSPECTION OF OUR OF OUR POLLS BACK IN 22. WE'VE NOW REPLACED ALL OUR PRIORITY ONE, TWO, THREE POLLS AND STILL HAVE ABOUT 200 POLLS THAT ARE CATEGORIZED AS AS A CATEGORY FOUR. SO THEY'RE NON CRITICAL POLLS. TOTAL POLLS WOULD POLLS. 
          WE'RE TALKING OVER 7000 POLLS IN THE CITY. >> SO BEFORE THE PASSAGE OF THIS 
          BILL WHAT'S THE NORMAL INSPECTION SCHEDULE FOR A POLL. >> YEAH. GENERALLY IN THE INDUSTRY YOU KNOW 5 TO 10 YEARS, YOU KNOW, SOME UTILITIES KIND OF, YOU KNOW, WEAR OUT THEIR ASSETS A LOT MORE THAN, THAN WE DO. AND SO BUT I WOULD SAY 5 TO 10 YEARS IS KIND OF THE 
          CUSTOMARY KIND OF PERIOD. >> HERE IN DENTON. WHAT'S THE GENERAL LIFE CYCLE OF A POLL? HOW LONG DO THEY LAST HERE BEFORE YOU HAVE TO REPLACE THEM? IF YOU CAN QUANTIFY THAT, I 
          UNDERSTAND. THAT'S A HARD QUESTION. >> YEAH. I MEAN, SOME SOME POLLS LAST AS LONG AS 30 YEARS, YOU KNOW, UNTIL THEY COME ACROSS A CAR, YOU KNOW, OR OR LIGHTNING OR SOMETHING LIKE THAT, BUT OR VERY, VERY HIGH WINDS. THERE'S, THERE'S, YOU KNOW, CERTAINLY WE'RE IN AN AREA WHERE THERE'S LOT OF STRAIGHT WINDS. AND THE OTHER CHALLENGE WE HAVE IS THAT SOME OF THESE POLLS ARE NOW BEING OVERLOADED BY, YOU KNOW, BY OUR COMMUNICATION FRIENDS. 
          AND SO, SO WE'VE NOW IMPLEMENTED, YOU KNOW, A STRUCTURAL STUDIES THAT THEY HAVE TO COMPLETE BEFORE THEY CAN ATTACH TO OUR POLLS TO MAKE SURE THAT, THAT THE POLL CAN ACTUALLY 
          TAKE ON THE ADDITIONAL WEIGHT. >> CAN I TAKE CREDIT FOR THAT? SOUTHEAST DENTON. MAYBE I'LL TAKE CREDIT FOR THAT ONE. SO IS THIS GOING TO START US TO RETHINK THE TYPE OF MATERIAL THAT WE'RE USING FOR POLLS, GIVEN THAT WE NOW HAVE TO INSPECT MORE OFTEN, ARE WE GOING TO STICK WITH TRADITIONAL WOOD? YOU'RE GOING TO GO TO METAL OR SOMETHING ELSE? I'M ASKING ABOUT 
          THIS FROM A COST PERSPECTIVE. >> YEAH. WELL, THE GOOD NEWS THAT IN DENTON, ABOUT 60% OF OUR DISTRIBUTION SYSTEM IS ALREADY UNDERGROUND. SO WE'RE TALKING ABOUT 40% OF THE CITY. AND SO, SO CERTAINLY LOOKING FOR THOSE OPPORTUNITIES TO UNDERGROUND, YOU KNOW, SOME OF OUR DISTRIBUTION SYSTEM IS CERTAINLY SOMETHING THAT WE LOOK AT. AND CERTAINLY IF IT'S AN AREA THAT IS VERY PRONE TO OUTAGES OR POLE BREAKAGES, CERTAINLY WE'RE LOOKING AT A WAY TO UNDERGROUND. 
          THE LEAST COST OPTION IS CERTAINLY WOOD POLES. >> SO IT SOUNDS LIKE YOU'RE SAYING THAT IT'S NOT GOING TO PROVIDE TOO MUCH OF AN ADDITIONAL COST FOR IN TERMS OF STAFF OR MATERIALS IN ORDER TO MEET THE REQUIREMENTS OF THIS BILL ONCE IT'S SIGNED. CORRECT? 
          >> YEAH. CORRECT. >> OKAY. I THINK THAT'S IT I HAVE FOR YOU. THANK YOU. SO 18 1883. SO I GUESS THIS ONE'S ABOUT IMPACT FEES. SO WE'VE HAD THIS DISCUSSION MULTIPLE MULTIPLE TIMES. WE KNOW THAT I ASSUME LATER THIS SUMMER IMPACT FEES WATER WASTEWATER WILL BE BACK UP ON US. AS I REMEMBER IT. AND MISS CITY MANAGER FEEL FREE TO HELP ME OUT. LAST TIME WE 
          [00:50:04]
DISCUSSED DOING THIS ON AN EVERY TWO YEAR CYCLE. SO WHAT IS CHANGING THE REQUIREMENTS GOING TO DO FOR US TO MAKE SURE WE ARE REEVALUATING THE NEED ON A FASTER BASIS THAN THIS? NO MORE THAN THREE YEARS. I, I REMEMBER IN OUR DISCUSSION THIS BODY HAD SAID WE WOULD BE DOING THIS 
          EVERY TWO YEARS. CORRECT? >> I BELIEVE, I BELIEVE THAT'S WHAT WE SAID. BUT I MEAN, I 
          THINK 2 TO 3 YEARS IS PROBABLY REASONABLE. >> SO WE CAN WE CAN WEIGH THAT 
          THAT THIRD YEAR. >> I THINK WE'LL HAVE TO DO THE WORK IN ADVANCE. SO, FOR INSTANCE, YOU WOULDN'T WAIT TILL THE YEAR TO DO IT. YOU JUST START LOOKING AT THOSE FEES WAY BEFORE. FOR ME, I THINK IT'S NOT SO MUCH AS IMPACT FEES. IT IS ALL OF OUR FEES HAVING TO MAKE SURE EVERY THREE YEARS WE ACTUALLY LOOK AT OUR FEES TO SEE IF WE'RE COVERING OUR COST. BUT OBVIOUSLY IF THIS IS SENT TO THE GOVERNOR AND SIGNED, WE WOULD START DOING OUR DUE DILIGENCE AND PROBABLY YEAR ONE AND A HALF TO TWO BEFORE WE EVEN GET TO THE THREE YEAR PERIOD SO WE CAN MAKE SURE THAT WE WERE WHEN IT HAPPENS, WE ADEQUATELY REFLECT THOSE FEES. 
          >> SO WE'VE DONE ROAD. WHEN ARE WE COMING BACK ON THE AGENDA ON THE ON THE COUNCIL CALENDAR WITH 
          WATER WASTEWATER ISH. >> IT'S AUGUST ISN'T IT? JULY AND AUGUST. YEAH. 
          >> SO AND I WILL CLARIFY IF THIS HELPS THAT THE THIS WOULD BE MOVING FORWARD. BUT ANY WORK 
          THAT'S CURRENTLY IN PROGRESS IS ALLOWED TO CONTINUE. >> IT'S UNDER. 
          >> THAT'S WHERE I WAS GOING. SO WE'LL STILL BE ABLE TO HAVE THAT CONVERSATION AND MAKE 
          ADJUSTMENTS AS NECESSARY WITH WATER WASTEWATER COMING UP. >> ESPECIALLY IF WE DO IT IN 
          AUGUST. >> WELL, IF WE DO IT IN AUGUST, ARE WE GOING TO BE DONE AND 
          VOTED BEFORE SEPTEMBER 1ST? >> WE'LL WE'LL HAVE TO MAKE SURE THAT WE'RE COVERING OURSELVES 
          TO, TO DO IT. >> GOOD AFTERNOON. JESSICA WILLIAMS CHIEF FINANCIAL OFFICER SO IN OUR NEXT PRESENTATION, WE'LL BE TALKING ABOUT OUR NEXT STEPS FOR BUDGET. WE WILL COME BACK IN JULY. WE'RE GOING TO TALK ABOUT UTILITY RATES. WE'RE GOING TO TALK ABOUT UTILITY BUDGETS. WE'LL TOUCH ON IMPACT. FEES WILL BE BACK AGAIN AUGUST 9TH. WE'LL HAVE OUR BUDGET WORKSHOP. SO WE'LL ALL GET TO SPEND A SATURDAY TOGETHER. AND THAT'S WHEN WE'LL GO OVER EVERYTHING. ALL ALL IS ONE. AND THEN WE HAVE TIME BLOCKED OUT ON YOUR CALENDAR TO COME BACK FOR THOSE NEXT COUPLE OF MEETINGS FOR ANY FOLLOW UP AS WELL. SO WE'LL HAVE THOSE DISCUSSIONS AS 
          THE SUMMER CONTINUES. >> AND IMPACT FEES WILL BE INCLUDED IN THAT. 
          >> YES, WE'LL LOOK AT THE IMPACT FEES. >> DOES LOOK MEAN WE'RE GOING TO 
          DECIDE ABOUT A NEW RATE. >> FOR THE WATER WASTEWATER RATES. I'M NOT SURE CASSEY WHEN HE PLANS TO COME BACK, BUT I ANTICIPATE IT'S THIS SUMMER. IN JULY 15TH. 
          >> IN GENERAL, I'M JUST ASKING TO. >> MAKE SURE IT'S BEFORE 
          SEPTEMBER. YES. >> OKAY. >> OKAY. YES. JULY 15TH. 
          >> OKAY. THANK YOU VERY MUCH, CHRISTY. ONE FOR YOU, IF YOU DON'T MIND, SENATE BILL 15 OR THIS MIGHT BE FOR OUR LOBBY TEAM. AND MY NEXT QUESTION IS FOR YOU ANYWAY. HOW LIKELY IS 15 
          TO PASS. >> SO WE'RE JUST WAITING TO SEE IF THE GOVERNOR SIGNS IT. I DON'T KNOW THAT WE HAVE ANY INCLINATION EITHER WAY. I DO KNOW THAT THERE ARE QUITE A FEW CITIES THAT HAVE SUBMITTED REQUESTS FOR HIM TO VETO, OURSELVES INCLUDED. I HAVEN'T HEARD ANYTHING. I DON'T KNOW IF TREY FROM HANCE SCARBOROUGH HAS. FEEL FREE TO JOIN US. 
          >> AFTERNOON. >> TREY HANCE SCARBOROUGH. YEAH, WE HAVEN'T HEARD ANY INDICATION THAT THE GOVERNOR IS GOING TO VETO THAT. I KNOW THERE HAVE BEEN A NUMBER OF LETTERS THAT HAVE BEEN SENT IN. I WOULD ANTICIPATE THAT HE DOES NOT VETO IT, AND THAT IT DOES END UP 
          BECOMING LAW ON THE 22ND OR EARLIER. >> OKAY. AND, TREY, WHILE YOU'RE THERE, MY LAST QUESTION TO YOU IS JUST BECAUSE I'M UNFAMILIAR WITH THE PROCESS. AFTER A PIECE OF LEGISLATION PASSES, PASSES BOTH HOUSES AND GOES TO THE GOVERNOR FOR SIGNATURE, WHAT IS WHAT IS YOUR ROLE REPRESENTING US? ONCE A BILL IS ON THE GOVERNOR'S DESK, I'M ASSUMING, AND HOPING THAT YOU DO MORE THAN JUST SEND A LETTER. SO WHAT DOES THAT PROCESS. 
          >> LOOK LIKE? >> YEAH, WE ENGAGE WITH THE GOVERNOR'S OFFICE, USUALLY THE POLICY OFFICE AND THE DEPUTY CHIEF OF STAFF AND CHIEF OF STAFF TO VOICE THE CONCERNS THAT WE HAVE WITH THE BILL. YOU KNOW, THIS IS THIS IS A PERIOD I THINK, THAT THAT CHRISTIE SAID THAT THERE HAD BEEN 1200 BILLS THAT HAD BEEN PASSED, THE VAST MAJORITY OF THOSE PASSED WITHIN THE LAST TEN DAYS OF THE LEGISLATIVE SESSION, WHICH MEANS THAT ALL OF THOSE BILLS ARE UP FOR SIGNATURE VETO, OR THE GOVERNOR ALLOWS THEM TO BECOME LAW WITHOUT HIS SIGNATURE DURING THAT PERIOD. AND SO IT IS A RACE TO GET THEIR ATTENTION. AND THAT'S THAT'S WHAT WE DO. SEND SEND A LETTER WITH THE KIND OF FORMAL BULLET POINTS OF THE OF THE CITY'S CONCERNS AND THEN 
          [00:55:02]
ENGAGE WITH THE CHIEF OF STAFF, DEPUTY CHIEF OF STAFF AND POLICY OFFICE. 
          >> IS THE COMMUNICATION ONE WAY, OR ARE YOU ALSO HEARING BACK. >> FROM THEM? IT DEPENDS. 
          SOMETIMES WE HEAR BACK FROM THEM, SOMETIMES WE DON'T. SOMETIMES THE GOVERNOR'S OFFICE PREEMPTIVELY REACHES OUT TO US ON ON CERTAIN BILLS AND ASK FOR OPINIONS. YOU KNOW, THEY LOOK AT THE LOBBY REGISTRATIONS AND SEE WHO IS REPRESENTING DIFFERENT ENTITIES, IN THIS CASE CITIES. 
          AND THEY DO ON OCCASION, REACH OUT. SO IT'S A TWO WAY STREET SOME OF THE TIME. SOME OF THE TIME IT IS A YOU KNOW. YEAH WE'LL LOOK INTO THAT. AND THEN THAT'S THAT'S PRETTY MUCH IT. 
          >> THE GOVERNOR WAS JUST IN DENTON YESTERDAY. DID ANYONE FROM HANCE SCARBOROUGH CONTACT HIS OFFICE ABOUT SETTING UP A MEETING WITH HIM, TALKING TO HIM ABOUT ANY OF OUR ISSUES? 
          >> WE WERE IN TOUCH WITH, WITH CHRISTIE AND THE AND THE MAYOR'S OFFICE. SHERRY HUDDLESTON ON OUR 
          TEAM WAS IN TOUCH REGARDING THE SIGNING CEREMONY FOR THAT BILL. >> DID ANYONE FROM HANCE SCARBOROUGH REACH OUT TO HIM, TRY TO SET UP A MEETING, TRY TO ENGAGE HIM ON ANY OF OUR 
          PRIORITIES WHILE HE WAS IN DENTON? >> I DON'T THINK SO. THE GOVERNOR'S MEETING WAS LAST MINUTE. WE ACTUALLY TALKED WITH SENATOR BETTENCOURT'S OFFICE, WHO WAS THE AUTHOR OF THAT BILL, AND THEY WERE NOT AWARE UNTIL LATE LAST WEEK THAT THE BILL SIGNING WAS WAS OCCURRING ON THIS DATE. AND SO AS SOON AS WE FOUND OUT ABOUT IT, WE ENGAGED WITH WITH YOU ALL TO HAVE YOUR PRESENCE THERE AT THE SIGNING CEREMONY. BUT BUT I DO NOT KNOW IF ANYBODY WAS IN TOUCH WITH THE GOVERNOR'S OFFICE ABOUT ENGAGING ON ADDITIONAL DENTON PRIORITIES. 
          BESIDES THAT BILL SIGNING. >> CHAIRMAN BETTENCOURT WAS ALSO IN. DID ANYONE REACH OUT TO HIM 
          TO TALK ABOUT ANY OF OUR PRIORITIES? >> WELL, WE WERE TALKING TO HIM ABOUT THAT BILL, BOTH HIS HIS CHIEF OF STAFF AND HIS DEPUTY DIRECTOR OF LOCAL GOVERNMENT, 
          WHO STAFFS THE COMMITTEE. >> OKAY, MAYOR, I'M DONE. BUT WHAT I'M GETTING AT IS THAT CHAIRMAN BETTENCOURT WAS IN DENTON WOULD HAVE BEEN A HELL OF AN OPPORTUNITY FOR US TO INTRODUCE THE CITY TO HIM. I THINK WE ABSOLUTELY MISSED AN OPPORTUNITY THERE. THANKS, 
          MAYOR. >> ANY OTHER ANY OTHER QUESTIONS FOR STAFF ON THIS, TREY? I'LL SAY, AND CHRISTIE, THANK YOU VERY MUCH FOR YOUR HELP YESTERDAY, LAST MINUTE AND I DID WELCOME SENATOR AND GOVERNOR AND THE HOUSE CHAIR TO DENTON AND HAD GREAT CONVERSATIONS. THEY WERE VERY GRATEFUL TO BE HERE AND EXPRESS GREAT THOUGHTS AND KIND OF EXCHANGE THAT THAT WE'RE, YOU KNOW, SUPPORTIVE ETC, REACH OUT THOSE SORT OF THINGS AND TALK TO THE GOVERNOR'S. 
          LEGISLATIVE STAFF MEMBER THAT YOU CONNECTED ME WITH. AND SO THANK YOU VERY MUCH FOR THAT VERY KIND. SO TO THAT I SAY WELL DONE. ANY OTHER QUESTIONS FOR STAFF SEEING NONE I DO HAVE ONE QUESTION FOR YOU, CHRISTIE. THANK YOU. TREY. H.R. SEVEN SB, SB SEVEN. IS THERE A COMPONENT THERE ABOUT WATER CITY WATER LEAKS, RIGHT. IS THAT DID I UNDERSTAND THAT? RIGHT. THAT THERE'S A COMPONENT IN THERE THAT SAYS THEY'RE GOING TO WE HAVE TO REPORT ON LEAKS WITHIN 
          THE CITY'S INFRASTRUCTURE? >> I BELIEVE THAT'S A SEPARATE BILL, BUT I CAN GET THAT 
          INFORMATION TO YOU. >> OKAY. YEAH, I'D LIKE TO KNOW. >> ABSOLUTELY. 
          >> IF THAT IF THAT COMPONENT, DO YOU KNOW IF THAT COMPONENT PASSED? 
          >> I BELIEVE SO. >> OKAY. AND HAS CITY STAFF LOOKED INTO. 
          >> I KNOW STEVEN GAY, OUR WATER UTILITIES DIRECTOR, IS AWARE OF IT AND WE'VE HAD SOME CONVERSATIONS ABOUT IT. PRELIMINARILY, I DON'T KNOW THAT WE'VE DONE A WHOLE LOT OF WORK 
          TO UNDERSTAND HOW THAT IMPACTS US JUST YET, BUT WE WILL BE. >> OKAY THAT. 
          >> I CAN GET YOU SOME INFORMATION REGARDING THAT. >> OKAY, WHATEVER ELSE IS 
          [C. Receive a report, hold a discussion, and give staff direction regarding the current and forecasted budget.
   [Estimated Presentation/Discussion Time: 60 minutes]]
AVAILABLE THAT ANSWERS MY QUESTION. ALL RIGHT. THANK YOU VERY MUCH. APPRECIATE IT. THANK YOU. THAT TAKES US TO ITEM C ID 242616. RECEIVE. REPORT HOLD DISCUSSION GIVE STAFF DIRECTION 
          REGARDING THE CURRENT FORECAST BUDGET. >> GOOD AFTERNOON AGAIN MR. MAYOR. MEMBERS OF COUNCIL JESSICA WILLIAMS CHIEF FINANCIAL OFFICER SO AS WE'VE TALKED ABOUT A COUPLE OF TIMES ALREADY THIS SUMMER, I'M ON YOUR AGENDA FOR JUST ABOUT EVERY MEETING AS WE GO THROUGH THIS BUDGET PROCESS. TODAY'S MEETING, WE'RE GOING TO TALK ABOUT SOME PROPOSED REDUCTIONS. CHRISTINE TAYLOR IS GOING TO JOIN ME AT THAT TIME AND LEAD THAT DISCUSSION WITH YOU. SO WHAT I'M GOING TO GIVE YOU RIGHT NOW IS JUST A LITTLE BIT OF AN UPDATE ON WHERE WE ARE, WHAT'S HAPPENED SO FAR, AND SOME INFORMATION ABOUT THE BUDGET OVERALL. SO JUST AS A 
          [01:00:07]
REMINDER, THE ADOPTED OPERATING BUDGET IS THE LEGAL WAY IN WHICH A CITY MAY LEVY AND COLLECT TAX DOLLARS. IT IS REQUIRED TO BE BALANCED BY TEXAS STATE LAW, AND THE ADOPTED OPERATING BUDGET IS SEGREGATED BASED ON FUND, IN ALIGNMENT WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. 
          SO TO HAVE A STRUCTURALLY BALANCED BUDGET, ALL REVENUES AND OTHER RESOURCES MUST EQUAL ALL EXPENDITURES. WE'VE TOUCHED A LITTLE BIT ON THE IMPORTANCE OF PROTECTING UNRESTRICTED FUND BALANCE. I'VE ADDED A LITTLE INFORMATION HERE. WE ALSO PLAN TO SEND YOU SOME ADDITIONAL INFORMATION IN NOT THIS WEEK, BUT NEXT WEEK'S FRIDAY REPORT. SO THE GFOA STRONGLY EMPHASIZES THE IMPORTANCE OF PROTECTING OUR FUND BALANCE IN OUR GOVERNMENTAL FUNDS. MAINTAINING OUR ADEQUATE FUND BALANCE PROVIDES US A CRITICAL FINANCIAL BUFFER. IT ENABLES US TO HANDLE UNEXPECTED EVENTS LIKE SHORTFALLS, EMERGENCIES, AND UNFORESEEN EXPENSES, AND IT SUPPORTS LONG TERM FINANCIAL STABILITY AND POSITIVELY IMPACTS OUR CREDIT RATINGS. SO AS WE'VE TALKED ABOUT A COUPLE OF TIMES, WE'VE SEEN WHERE WE'VE HAD SOME NET LOSS OVER THE LAST COUPLE OF YEARS. AND SO AS WE GO INTO THIS YEAR, WE'RE REALLY FOCUSED ON HOW WE CAN RIGHTSIZE OUR BUDGET. 
          THIS YOU'VE SEEN NOW A COUPLE OF TIMES FOR 24, 25, WE HAD INITIALLY ANTICIPATED A LOSS. I THINK WE STARTED AT ABOUT 9 MILLION, GOT TO ABOUT 6.3 LAST TIME WE TALKED. AND I'M HAPPY TO TELL YOU THAT THE STRATEGIES THAT OUR CITY MANAGER HAS PUT INTO PLACE HAVE ALLOWED US TO CLOSE THAT GAP. SO WE'LL LOOK AT THAT A LITTLE MORE CLOSELY. BUT AS WE HAVE TALKED ABOUT, PROPERTY TAX REVENUE IS COMING IN AT ABOUT 98% OF COLLECTION. WE HAVE SEEN EXPENDITURES OUTPACING REVENUES. THOSE EXPENDITURES ARE STILL WITHIN YOUR ADOPTED APPROPRIATIONS. SO NO CONCERNS THERE. HOWEVER, REVENUE IS SLOWING. AND WE'VE TALKED ABOUT THAT SINCE ABOUT APRIL. WE ALSO HAVE HAD VERY LOW TURNOVER OVER THIS PAST YEAR. OVER THE LAST COUPLE OF YEARS, DENTON HAS STRIVED TO BE AN EMPLOYER OF CHOICE. WE HAVE DONE QUITE A BIT FOR OUR EMPLOYEES. 
          WE'VE DONE A COMPENSATION STUDY, WE'VE INCREASED SALARIES, WE'VE HELD OFF ON MEDICAL INCREASES, AND WHEN WE'VE HAD LOW OR WE'VE HAD HIGH VACANCY, THAT'S REALLY BEEN ABLE TO BE BALANCED. BUT WE ARE SEEING THAT THOSE EFFORTS HAVE PAID OFF. AND SO WE ARE AT A LOW VACANCY RATE AT THIS POINT IN TIME. SO WHEN WE STARTED THESE CONVERSATIONS BACK IN APRIL, WE TALKED TO YOU ABOUT THE STRATEGIES THAT WE WERE PUTTING IN PLACE TO MITIGATE THE GAP. SO WE IMPLEMENTED A MANAGED VACANCY PROGRAM THAT YOU WILL SEE MAINTAINED THROUGH NEXT YEAR. WE REDUCED OUR DISCRETIONARY OPERATIONAL SPENDING CITYWIDE. WE ARE EVALUATING AND CONTINUING TO EVALUATE TRANSFERS BETWEEN FUNDS. AND THEN THE CITY AUDITOR HAS STARTED AN OVERTIME AUDIT. 
          SO AS WE'RE LOOKING AGAIN AT THE CURRENT YEAR, WE'RE STILL SEEING THOSE REVENUES SLOWING. NO CHANGE THERE. WE'RE NOT GOING TO ANTICIPATE THAT WE'RE GOING TO COLLECT MORE PROPERTY TAX THAN HAS BEEN COLLECTED. WE'RE STILL AT THAT $2.1 MILLION VARIANCE. SALES TAX HAS ALSO COME IN LOWER OVER THE PAST APPROXIMATELY FOUR MONTHS, WHICH IS ABOUT WHEN WE STARTED THESE CONVERSATIONS, WE WERE SEEING ECONOMIC CHANGES, FRANCHISE FEES AND ROI HAVE COME IN A BIT LOWER AS WELL. YEAR TO DATE. HOPEFULLY WE SEE A CHANGE IN WEATHER PATTERN AND IT GETS NICE AND HOT AND WE HAVE A TEXAS SUMMER, BUT SO FAR I'VE DEFINITELY FELT LIKE IT'S MORE BACK IN THE NORTHWEST FOR ME THAN BACK IN TEXAS. SO STILL ANTICIPATING ABOUT $3.9 MILLION IN REVENUE SLOWING. BUT THIS IS WHERE WE'VE REALLY MADE A BIG DIFFERENCE. WE HAVE HELD THOSE POSITIONS. WE ANTICIPATE ABOUT $2 MILLION IN SAVINGS FROM THAT MANAGED VACANCY PROGRAM. WE ARE STILL SEEING THOSE OVERAGES AND OVERTIME. WE'VE TALKED ABOUT THOSE. THAT'S WHAT THE AUDIT WILL. MADISON HAS STARTED ON THAT. IN FACT, YOU RECENTLY APPROVED CHANGING HER AUDIT PLAN SO THAT SHE COULD ADDRESS THAT THIS YEAR. BUT WE'VE REALLY SEEN SAVINGS IN THESE DISCRETIONARY LINES. SO MATERIALS AND SUPPLIES, MAINTENANCE AND REPAIRS, THE INTER FUND TRANSFERS. WE ANTICIPATE SOME SAVINGS THERE BECAUSE LIKE I MENTIONED WE'RE DOING THIS CITYWIDE. SO RIGHT NOW YOU'RE LOOKING AT IS THE GENERAL FUND. BUT WHEN EVERYBODY SAVES MONEY EVERYBODY SAVES MONEY. SO WE ARE RIGHT NOW PROJECTING A NET INCOME OF 264,000 AT THE END OF THE YEAR. SO WE'RE GOING TO LOOK REALLY BRIEFLY AT NEXT YEAR. AGAIN, I WILL REMIND YOU ALL, WE ARE EARLY IN THE PROCESS. THIS IS ABOUT THE FIRST TIME YOU WOULD HAVE SEEN ME IN A IN A STANDARD YEAR. BUT YOU'VE SEEN ME SEVERAL TIMES ALREADY THIS YEAR, SO WE ARE STILL ANTICIPATING THAT WE WILL HAVE A GAP GOING INTO NEXT YEAR OF ABOUT $14 MILLION. THE FACTORS THAT WE SEE GOING INTO NEXT YEAR 
          [01:05:01]
ARE THE FACTORS THAT WE'RE SEEING RIGHT NOW. WE'RE SEEING PROPERTY VALUATIONS LEVELING OUT, SPECIFICALLY NEW GROWTH. OVER THE PAST TWO YEARS, DENTON HAS HAD 1.1 BILLION AND 1.2 BILLION IN NEW GROWTH ADDED TO THE PROPERTY TAX VALUATION YEAR OVER YEAR. RIGHT NOW, WE'RE ANTICIPATING THAT'S GOING TO BE ABOUT 680 MILLION SALES TAX REVENUE. ALSO LEVELING OUT. 
          WE'RE SEEING REVERSION TO THE MEAN THERE. WE'VE TALKED AT LENGTH OVER THE LAST YEAR AND A HALF ABOUT THAT REVERSION TO THE MEAN FOR SALES TAX. AND WE'VE HAD SOME REDUCED GROWTH RELATED REVENUES AS THINGS ARE CONSTRICTING. WE ARE FOCUSED ON PUBLIC SAFETY OVERTIME AND GETTING A HANDLE ON THAT. LOOKING AT THAT, WE ARE ANTICIPATING WHAT WE NEED TO BUDGET FOR, THAT WE MAY HAVE SOME BENEFIT INCREASES ON THE EMPLOYER SIDE AND JUST CONTINUED ECONOMIC UNCERTAINTY. SO GOING INTO THIS YEAR, EVEN BEFORE BEFORE JANUARY, OUR CITY MANAGER MADE THE DECISION TO MOVE US TO ZERO BASED BUDGETING. AND THAT ALLOWED US TO REALLY FOCUS ON OUR CORE SERVICES. SO WE STARTED AT ZERO IN EVERY OBJECT CODE AND BUILT THE BUDGET UP FROM THERE. 
          DEPARTMENTS ARE TARGETING TO REDUCE THEIR SPENDING BY AT LEAST 3%. AND THAT'S WHAT CHRISTINE TAYLOR IS GOING TO COME AND TALK WITH YOU ABOUT. INTERNAL SERVICE AND SPECIAL REVENUE FUNDS. FUND UPDATES ARE PENDING. SO WE JUST RECEIVED THOSE A COUPLE OF WEEKS AGO. 
          WE'RE GETTING ALL THAT PUT IN. THEN WE'LL RERUN THOSE TRANSFERS THAT WE TALKED ABOUT. ACROSS THE ENTERPRISE FUNDS AS WELL. SO THE UTILITIES ARE PITCHING IN. THEY'RE ALSO LOOKING AT REDUCTIONS. AND THEN OUR AUDIT AND OUR MANAGED VACANCY PROGRAM CONTINUING. SO LOOKING PRELIMINARILY AT WHERE WE ARE RIGHT NOW. AND AGAIN THIS IS POINT IN TIME. I'LL BE BACK IN A COUPLE OF WEEKS. WE'LL SEE WHERE WE'RE AT THEN. THIS IS WHAT WE'RE LOOKING AT RIGHT NOW IN THE GENERAL FUND. WE'RE LOOKING AT AN INCREASE IN ANTICIPATED REVENUES AND RESOURCES OF ABOUT 2%. NOW, AS I MENTIONED, THESE TRANSFERS WERE GOING TO REVIEW. NOW THAT WE HAVE ALL OF THE REDUCTIONS ACROSS ALL OF THE FUNDS. SO AS THOSE COSTS REDUCE, WE MAY SEE REDUCTIONS HERE AS WELL. WE ARE SEEING REDUCED GROWTH IN REVENUES FOR PROPERTY TAXES, AS WE TALKED ABOUT, BECAUSE WE ARE SEEING REDUCED GROWTH IN THE ASSESSED VALUATION. THIS WILL CHANGE UNTIL THE COUNTY CERTIFIES VALUES AT THE END OF NEXT MONTH. SO RIGHT NOW WE'RE ANTICIPATING ABOUT $70.9 MILLION IN REVENUE COLLECTION FOR 2526, AGAIN PENDING THAT CERTIFIED VALUATION FROM THE COUNTY. SALES TAX. WE'RE ALSO WATCHING CLOSELY, AS I MENTIONED, FOR THE LAST FOUR MONTHS, WE HAVE HAD HAVE SEEN REDUCED SALES TAX. SO THAT'S WHERE SALES TAX IS COMING IN. 
          UNDER BUDGET. WE DO ANTICIPATE A BIT OF A SPIKE NEXT YEAR DUE TO THE WORLD CUP. SO THERE MAY BE SOME ADDITIONAL ECONOMIC ACTIVITY. LOUIS MCLANE IS WORKING THROUGH THIS AS WELL. 
          WE'RE REALLY TRYING TO GET JUST ANOTHER COUPLE MONTHS OF DATA, AND THEN WE'LL HAVE A BETTER IDEA OF WHAT NEXT YEAR WILL LOOK LIKE. SO. WE'RE GOING TO ALMOST TRANSITION INTO WHAT I THINK WILL BE THE MOST FUN PART OF THIS PRESENTATION. SO LOOKING AT PROPOSED REDUCTIONS, WHAT MATT HAMILTON, ASSISTANT DIRECTOR OF FINANCE, IS PASSING OUT TO YOU RIGHT NOW IS A PRELIMINARY PROFORMA. LOOKING JUST AT THE GENERAL FUND, THERE ARE TWO COLUMNS IN PARTICULAR THAT I'D LIKE TO DRAW YOUR ATTENTION TO. THOSE TWO FIRST COLUMNS THAT ARE LIGHT BLUE, THE FIRST THAT SAYS 20, 25, 26 ESTIMATED IS BEFORE THE REDUCTIONS THAT YOU'LL BE TALKING WITH CHRISTINE TAYLOR ABOUT HERE IN JUST A MINUTE. THAT'S THAT $14 MILLION GAP THAT WE NEEDED TO CLOSE THE NEXT SAYS 20 2526 ESTIMATED COST REDUCTIONS. SO ONCE WE TAKE THE REDUCTIONS THAT YOU'LL BE DISCUSSING INTO ACCOUNT, THAT GAP CLOSES TO ABOUT $7.3 MILLION. NOW, KEEP IN MIND, AS THAT GAP CLOSES, WE WILL ALSO SEE SOME CLOSURE ON THOSE TRANSFERS. SO IF YOU RECALL, WHEN WE LOOKED BACK AT WHERE WE ARE THIS YEAR, TRANSFERS DOWN ABOUT 5.5 MILLION BECAUSE OF THE COST SAVING STRATEGIES ACROSS THE BOARD. SO THAT $7 MILLION GAP WILL BE CONSIDERABLY IMPACTED THERE. AND WE ANTICIPATE THAT GAP TO BE CLOSED WHEN WE GET TO THE END OF THIS BUDGET. SO YOU WILL BE PASSING, AS YOU ALWAYS DO, A BALANCED BUDGET. SO AT THIS TIME, I WILL TURN OVER TO CHRISTINE TO WALK YOU THROUGH WHAT MAKES UP THAT $7 MILLION. 
          >> GOOD AFTERNOON. MAYOR AND COUNCIL, CHRISTINE TAYLOR, ASSISTANT CITY MANAGER. SO AS WE STARTED THIS BUDGET PROCESS AND BEGAN TO SEE THAT THERE WAS A DEFICIT IN THE CURRENT YEAR AND 
          [01:10:01]
A PRELIMINARY DEFICIT IN THE NEXT YEAR, WE STARTED WITH DEPARTMENTS CONDUCTING ZERO BASED BUDGETING, WHICH MEANT EACH DEPARTMENT STARTED FROM ZERO, JUSTIFYING EACH ACCOUNT. 
          WHAT ARE WE DOING? WHAT ARE SERVICE LEVEL IMPACTS? WE LOOKED AT ADDITIONAL COST SAVINGS THROUGH ASSESSING OUR EXISTING OPERATIONS, TO LOOK FOR SAVINGS THROUGH. ARE THERE PROGRAMS THAT WE'RE DUPLICATING? ARE THERE THINGS WE NEED TO ELIMINATE? HOW CAN TECHNOLOGY HELP US AND WHAT ADDITIONAL WORK CAN BE ABSORBED INTERNALLY? ONCE THESE REDUCTIONS WERE PUT TOGETHER, WE FORMED AN ADDITIONAL BUDGET TASK FORCE MADE UP, COMPILED OF A VARIETY OF DIRECTORS WHO FURTHER EXAMINED THE REDUCTIONS AND THESE PROPOSED REDUCTIONS THAT WE'RE ABOUT TO DISCUSS ARE FROM THE GENERAL FUND AND ACCOUNT FOR ROUGHLY 50% OF THAT PROJECTED DEFICIT. SO JUST WANT TO NOTE THAT THIS IS ABOUT HALF OF CLOSING THE GAP FOR NEXT YEAR. WE'RE STILL GOING TO HAVE CONTINUED CONVERSATIONS ON CLOSING THAT ADDITIONAL GAP, AND THOSE SAVINGS WOULD BE RECOGNIZED THROUGH OUR INTERNAL SERVICE FUNDS, THROUGH TECHNOLOGY SERVICES, FLEET FACILITIES. SO THIS FIRST PART OF THE PRESENTATION WILL BE ON THE GENERAL FUND. SO FOR THAT $7 MILLION COST SAVINGS, THE BIGGEST CATEGORY AND WHERE THE CITY CAN RECOGNIZE SAVINGS IS IN PERSONNEL. OUR PERSONNEL BUDGET AND THE GENERAL FUND IS ABOUT 70%, 67% OF OUR EXPENSES. SO THAT IS GENERALLY WHERE WE'LL RECOGNIZE THE MOST SAVINGS, THE PERSONNEL THAT WE'RE BRINGING FORWARD IS ABOUT $3 MILLION. WE EVALUATED ADDITIONAL PROGRAMS WHERE THERE WERE EFFICIENCIES, WHICH MAKES UP THE 2 MILLION, LOOKED AT CONTRACTED SERVICES AGREEMENTS, WHERE WE FOUND REDUCTIONS OF ADDITIONAL MILLION, AND THEN SMALLER SAVINGS WERE RECOGNIZED THROUGH TRAVEL AND TRAINING EFFICIENCIES, EQUIPMENT, SUPPLIES AND OTHER DISCRETIONARY FUNDING. WHAT'S IMPORTANT TO NOTE ON THESE PERSONNEL POSITIONS THAT ARE PUT FORWARD IS THAT ALL OF THESE REPRESENT EXISTING VACANCIES. SO WHEN WE BEGAN TO SEE THAT THERE WAS OR FORECASTING THAT POTENTIAL GAP, ONCE AGAIN, PERSONNEL BEING THAT BIGGEST SAVINGS, WE WENT TO THE MANAGE VACANCY PROGRAM. SO AS POSITIONS REMAIN, WERE VACANT ALREADY OR BECOME VACANT, WE HOLD THEM HOLD THOSE SAVINGS TO WORK ON THE GAP. SO THIS PROGRAM WILL CONTINUE THROUGH NEXT FISCAL YEAR. SO THESE ARE EXISTING VACANCIES. SOME OF THEM DO ARE NEW POSITIONS THAT WERE ADDED IN THE BUDGET YEAR. SO WE JUST HELD THEM VACANT THE ENTIRE YEAR. BUT WE DO PLAN AS PART OF THE STRATEGY TO CONTINUE TO HOLD VACANCIES INTO NEXT FISCAL YEAR. WHAT THIS DOES IS IT DOES PROVIDE MAXIMUM FLEXIBILITY FOR THE CITY MANAGER, WHO HAS A FOCUS ON, YOU KNOW, AS CONDITIONS IMPROVE, THIS PROVIDES THE MOST FLEXIBILITY. SO AS OTHER POSITIONS COME VACANT, IF WE CAN FILL THE PUBLIC SAFETY ONES FIRST OR WE ARE ELIMINATING, THERE'S AN OPPORTUNITY TO FILL THEM AS OTHER VACANCIES COME FORWARD AND WE CONTINUE TO MANAGE THAT NUMBER. ADDITIONAL SAVINGS THAT WE HOPE TO RECOGNIZE ARE THROUGH OVERTIME AND EFFICIENCIES, AND SCHEDULING AND TASK MANAGEMENT TO BALANCE WORKLOADS PROGRAM. SO IN THE PROGRAM HIGHLIGHTS, WE WANTED TO PULL OUT THE MAJOR ONES THAT WE FELT WOULD BE WORTH THE DISCUSSION NEEDED TO BE A DISCUSSION WITH COUNCIL. THE FIRST ONE IS TO DISCONTINUE THE AMBASSADOR PROGRAM, WHICH REPRESENTS ABOUT A HALF A MILLION IN EXPENSE IN THE GENERAL FUND. SO THIS PROGRAM WENT INTO PLACE IN 2023, APPROVED AS A PILOT PROGRAM. AND IT INCLUDED. THE GOAL WAS TO FIND A SUSTAINABLE FUNDING SOURCE OUTSIDE OF THE GENERAL FUND IF THE PROGRAM WAS TO CONTINUE BEYOND A PILOT. SO CITY STAFF WORKED AND RESEARCHED, HELD MEETINGS WITH DOWNTOWN PROPERTY OWNERS REGARDING THE POTENTIAL FORMATION OF A PID. THROUGH THOSE DISCUSSIONS, THE CONVERSATIONS LED TO THERE WAS SOME POTENTIAL INTEREST IN DEVELOPING A PID, BUT NOT INTEREST TO PURSUE WITH FUNDING THE AMBASSADOR PROGRAM. SO WITH THIS INFORMATION AND WITHOUT AN ALTERNATIVE FUNDING SOURCE AS A PID, THE PROGRAM WOULD CONCLUDE IN DECEMBER OF 2025. THAT DOES MEAN SERVICE LEVELS ON THE SQUARE WOULD REDUCE TO WHAT THEY WERE BEFORE THE PILOT PROGRAM. 
          AN EXAMPLE OF THAT IS POWER WASHING. PRIOR TO HAVING THE AMBASSADOR PROGRAM WAS CONDUCTED QUARTERLY, GRAFFITI REMOVAL, THINGS LIKE THAT WOULD BECOME MORE OF PROACTIVE OR REACTIVE FOR CODE ENFORCEMENT CASES. SO IT WILL REDUCE TO THOSE REDUCED SERVICE LEVELS. PARTIALLY DISCONTINUE THE AFTER SCHOOL PROGRAM. ONE OF THOSE EXERCISES WE'VE GONE THROUGH, WE'VE CONTINUED TO WORK WITH DISD OVER THE LAST COUPLE YEARS AND EXAMINE HOW WE CAN WORK TOGETHER IN OUR SERVICES. BOTH THE CITY AND ISD BOTH OFFER AN AFTER SCHOOL PROGRAM. THE MAIN DIFFERENCE IS DISD CONDUCTS THEIR PROGRAM ON SITE, WHILE THE CITY USES TRANSPORTATION TO PICK UP STUDENTS AND TAKE THEM TO RECREATION FACILITIES. WHILE WORKING WITH THE ISD, THEY HAVE THE CAPACITY TO ABSORB THE PARTICIPANTS. WE'VE WORKED WITH THEM AND LOOKED AT OUR ENROLLMENT THE LAST COUPLE OF YEARS. I THINK OUR AVERAGE NUMBER WAS A LITTLE UNDER 100. 
          THEY HAVE THAT CAPACITY TO FULLY ABSORB THE PROGRAM, WHICH MEANS SERVICE LEVELS WOULD NOT BE 
          [01:15:02]
DIMINISHED FOR THE COMMUNITY. AND THE ONE CAVEAT IS THEY HAVE LOW ENROLLMENT AT RIVERA. IF THEY DON'T HAVE ENOUGH TO DO A PROGRAM AT RIVERA RIVERA. WE WILL CONTINUE TO OFFER OUR PROGRAM AT MLK REC CENTER. ADDITIONAL REDUCTIONS TO HIGHLIGHT ARE REDUCING SOME PROGRAMING OUT AT CLEAR CREEK. CLEAR CREEK PROGRAMING WILL BE SCALED BACK, AND IT'S INCREASINGLY SUPPORTED BY VOLUNTEERS DUE TO LIMITED BANDWIDTH MAINTENANCE. SERVICE LEVELS REMAIN UNCHANGED, SO THE PARK WOULD REMAIN OPEN AND ABLE TO USE. BUT SEVERAL OF THE PROGRAMS WHICH I CAN HIGHLIGHT, WE'D BE LOOKING AT REDUCING THAT WAS EVALUATED BASED ON LOOKING AT PROGRAM ATTENDANCE AND THEN THAT COST RECOVERY PERCENTAGE. SO A COUPLE TO HIGHLIGHT ARE NATURE YOGA IS ONE OUT THERE THAT WOULD NO LONGER TAKE PLACE. THE SPECIAL INTEREST SPRING BREAK CAMPS KAYAKING BUT STILL UTILIZING IT FOR FIELD TRIPS WILL STILL BE AVAILABLE. THE TRAILS WILL STILL BE OPEN. THE MASTER NATURALIST WILL STILL STILL BE OUT THERE. VOLUNTEER PROGRAMS, BUT WE WILL BE REDUCING HAVING A BUILDING ATTENDANT ON SITE AND SPECIFIC PROGRAMING. REDUCE IRRIGATION AND RYEGRASS OVERSEEDING. THIS IS AN EFFICIENCY PARK MAINTENANCE CAME UP WITH. WATERING SCHEDULES WILL BE ADJUSTED TO ENHANCE THE EFFICIENCY, REDUCING THAT WATER USAGE WHILE EXTENDING IT HELPS WITH THE LIFESPAN OF THE IRRIGATION IRRIGATION SYSTEMS. THIS WILL NOT BE IN OUR HIGH TRAFFIC AREAS. SO IT IS A AN EFFICIENCY THAT PARK MAINTENANCE FEELS IS WILL ALIGN WITH OUR CITY'S DROUGHT CONTINGENCY AND WATER CONSERVATION PLANS. WE'LL BE PAUSING ON THE K-9 PROGRAM. THIS WAS A NEW PROGRAM ADDED IN THE CURRENT BUDGET YEAR, SO THE PROGRAM HAS NOT BEEN IMPLEMENTED, SO THERE'S NO CURRENT IMPACT TO SERVICE LEVELS WITHOUT. IT WILL CONTINUE TO RELY ON MUTUAL AID WHEN THEY ARE NEEDING K-9 SERVICES. SELECT IN HOUSE SPECIAL EVENTS IS AN ITEM WE'RE LOOKING TO REDUCE. THE COMMUNITY PARTNERSHIP HAS RECEIVED A PRESENTATION ON THE INCREASED NUMBER OF THIRD PARTY OUTSIDE SPECIAL EVENTS, WHICH HAS INCREASED THE WORKLOAD AND NEED ON CITY STAFF ON PERMITTING THOSE EVENTS. SO THE NEED IS REALLY SHIFTED TO FOCUS ON SUPPORTING OUR EXTERNAL EVENTS AND SCALING BACK OUR INTERNAL EVENTS THAT WE HAVE. WE LOOK FORWARD TO COMMUNITY PARTNERSHIP THIS YEAR ON THE 4TH OF JULY, WE WILL HAVE THE LIBERTY RUN ANY LONGER OR THE 4TH OF JULY JUBILEE. IN ADDITION, WE'RE LOOKING AT OTHER EVENTS LIKE EASTER WHERE THE COMMUNITY MARKET HOLDS ONES, OTHER CHURCHES HOLD ONE, AND SCALING BACK ON THE CITY EVENT. IN-KIND BUDGET FOR SPECIAL EVENTS. THE CURRENT BUDGET FOR THE GENERAL FUND INCLUDES AN ALLOCATION OF $400,000 FOR IN-KIND SERVICES. THIS IS ALLOCATED TO SPECIAL EVENTS THAT ARE SPONSORED BY THE CITY FOR POLICE, PUBLIC SAFETY, UTILIZATION, PARK MAINTENANCE, SOLID WASTE. SO THIS WOULD REDUCE THE IN-KIND AMOUNT DOWN TO 200,000. WE WILL BE WORKING FOLLOWING THE SPECIAL EVENT WORKSHOP IN JUNE. STAFF WILL BE WORKING WITH THE EVENT ORGANIZERS ON SPONSORSHIPS, MARKETING AND OTHER WAYS FOR THEM TO ENHANCE THEIR PROGRAMING. THESE MAJOR, OTHER MAJOR CATEGORIES INCLUDE CONTRACTUAL SERVICES ABOUT $1 MILLION. WE HAVE DEPARTMENTS LOOKED AT EXISTING CONTRACTS AND IDENTIFY OPPORTUNITIES FOR COST SAVINGS THROUGH SERVICE REDUCTIONS. BASICALLY, DEPARTMENTS LOOKED AT WHAT IS OUR WORK PLAN FOR THE NEXT YEAR? WHAT DO WE HAVE ENOUGH FUNDING TO GET THROUGH WHAT WE HAVE PLANNED, AND ANY ADDITIONAL FUNDING WHICH MAY HAVE BEEN HELD FOR CONTINGENCY OR AS PROJECTS SPEED UP IS BEING RECOMMENDED TO BE REDUCED. TRAVEL AND TRAINING IS A SMALL AMOUNT ACROSS THE GENERAL FUND. DEPARTMENTS LOOKED FOR THOSE ADDITIONAL EFFICIENCIES AND ARE LOOKING FOR WAYS TO UTILIZE VIRTUAL OPPORTUNITIES FOR TRAINING, ENSURING FIRST THAT OUR LICENSED STAFF THAT HAVE REQUIREMENTS FOR CEUS OR FOR THEIR LICENSE STILL CONTINUE ON THOSE TRAINING OPPORTUNITIES, BUT THAT WE LOOK AT MAYBE A CONFERENCE IN THE PAST WHERE STAFF WOULD HAVE SENT 4 OR 5 PEOPLE SCALING THAT DOWN TO 1 OR 2 AND SEEKING WAYS, MAYBE A TRAINER COULD COME IN HOUSE VERSUS US SENDING TO CONFERENCES. OTHER EQUIPMENT AND SUPPLIES REPRESENT ABOUT A $600,000 SAVINGS, AND IT'S BEEN INGESTED. LOOKING AT WHAT WERE WE ACTUALLY SPENDING, SAY SAME APPROACH ON THE CONTRACTUAL SERVICES. IS THERE ENOUGH FUNDING TO DO WHAT'S OUTLINED IN OUR WORK PLAN? IS THERE ANY WAY TO REDUCE THOSE CONTINGENCIES OR ADOPT TECHNOLOGY OR OTHER RESOURCES TO WORK TO HELP WITH THAT REDUCTION ON THE GAP? SO TODAY WE ARE SEEKING YOUR DIRECTION AND ACCEPTANCE OF THE PROPOSED REDUCTION, WHICH REPRESENTS ABOUT $7.1 MILLION, WHICH IS HALF OF THAT 
          [01:20:04]
PRELIMINARY GAP PROPOSED OR SHOWING FOR NEXT YEAR. WE WILL BE BRINGING BACK SEVERAL CONVERSATIONS TO DISCUSS HOW TO CLOSE THE REMAINING GAP, AND I'LL PAUSE ON NEXT STEPS FOR ANY 
          QUESTIONS ON WHAT WE HAVE IN THE PROPOSED REDUCTION SO FAR. >> THANK YOU VERY MUCH. 
          QUESTIONS FOR STAFF REPRESENTATIVE FROM DISTRICT TWO. 
          >> THANK YOU. >> THE LET'S START WITH THE AFTER SCHOOL AND LET ME JUST KIND OF STATE AND MAKE SURE I'M ON THE SAME PAGE. IF THERE WERE I'M GOING TO MAKE UP AN ACTUALLY DO YOU KNOW THE NUMBER OF CHILDREN COVERED BY THE COMBINED PROGRAM OF BOTH THE SCHOOL 
          DISTRICT AND OUR PROGRAM? >> I DO IT'S ABOUT THE SAME. I HAVE OUR ATTENDANCE NUMBERS FOR THE LAST THREE YEARS, AND WE BASICALLY MIRROR IT LOOKS LIKE WE MIRROR EACH OTHER. SO IT'S AROUND 100 PARTICIPANTS. WE HAVE AROUND AVERAGE OF 100 PARTICIPANTS A YEAR FOR THE. 
          >> LAST THREE. >> YEARS. >> A YEAR. AND SO WHAT THIS SAYS IS I'M UNDERSTANDING IS THAT THERE WILL STILL BE SLOTS FOR 100 PARTICIPANTS A YEAR. WE'RE NOT SAYING WE'RE NOT CALLING FOR SERVICE REDUCTIONS IN AVAILABILITY OF AFTER SCHOOL PROGRAMS, CORRECT. IN THE TOTALITY OF THE TWO PROGRAMS COMBINED. 
          >> YES. >> WE WORKED WITH THEM ON OUR ATTENDANCE NUMBERS, AND THEIR EXISTING PROGRAMS HAVE THE CAPACITY TO ABSORB WHAT WE'VE REFLECTED AS OUR ATTENDANCE FOR 
          THE LAST THREE YEARS. >> AND SO IF THERE'S COST SAVINGS COMING OUT OF THAT, WHAT WHERE WHERE ARE WE GETTING THOSE COST SAVINGS? I MEAN, ARE IS THERE PROGRAM PROVIDING LESS SERVICES THAN OUR PROGRAM OR OUR PROGRAMS? I MEAN, WHERE WHERE ARE THOSE BEING REALIZED? 
          >> THE COST SAVINGS FOR THE CITY IN THIS $200,000 IS WE WOULD NOT BE STAFFING OR RUNNING THE PROGRAMS ANY LONGER IN OUR RECREATION CENTERS. THAT REPRESENTS THE COST SAVINGS. 
          SOME OTHER INDIRECT COST SAVINGS ARE WE HAVE VEHICLES, VANS THAT ARE MAKING THOSE TRIPS FROM THE RECREATION CENTERS TO THE ELEMENTARY, TRANSPORTING CHILDREN BACK. SO THOSE VANS, IF WE DISCONTINUE THIS PROGRAM, WILL BE LOOKED AT HOW TO BE REALLOCATED INTO OTHER DEPARTMENTS. AND THEN ANY VANS THAT WE CAN WILL AUCTION OFF AND USE THOSE PROCEEDS BACK TO OUR 
          BACK TO OUR FLEET FUNDS. >> OKAY, I APPRECIATE THAT. THEN THE OTHER QUESTIONS I HAD. SO GOING TO I THINK IT'S SLIDE 24. ONE OF THE WE'RE TALKING ABOUT REDUCING PROGRAMING IN IN THE CLEAR CREEK AREA. THE IN THE IN THE PARK AREA THERE. WHAT IS THAT WHAT DO WE MEAN BY PROGRAM. 
          BECAUSE IT'S SORT OF ON THE SURFACE OF THIS, WE'RE ALREADY OVER RELIANT ON ON VOLUNTEERS. 
          SO WE'RE NOT HAVING A BASE PROGRAM PLUS VOLUNTEERS TO REALLY MAKE IT A GLOWING, AMAZING PROGRAM. WE SEEM TO BE, YOU KNOW, HEAVILY RELIANT ON MASTER NATURALISTS AND OTHER VOLUNTEERS TO DO THOSE SORTS OF THINGS. SO ARE ARE WE IMPACTING MAINTENANCE AS WELL OR JUST 
          PROGRAMING. >> SO THE PROGRAMS THAT WE WOULD BE KEEPING IS OF COURSE OPEN ACCESS TO CLEAR CREEK. ANYONE CAN DRIVE OUT THERE, ACCESS THE PROPERTY. WE'RE KEEPING OUTREACH HUNTING PERMITS DOWN THERE, THE GARDEN PLOTS, RENTALS. SO IF SOMEONE WANTS TO RENT THE FACILITY, THEN WE WOULD STAFF IT. THE PROGRAMS THAT WE LOOKED AT REDUCING WERE ONES WITH LOW ATTENDANCE, LOW COST RECOVERY RATES. SO THE EXAMPLE I GAVE EARLIER IS WE CONDUCTED NATURE YOGA OUT THERE. LAST YEAR. THERE WERE NINE PROGRAM PARTICIPANTS AND IT HAD ABOUT A 5% COST RECOVERY RATE. THE SUMMER CAMPS OUT THERE, THE SPECIALIZED LIKE SPRING BREAK CAMP, WOULD BE PROPOSED TO BE REDUCED OUT OF THERE. IT HAD ABOUT 60 PER 60 PARTICIPANTS WITH A 21% COST RECOVERY RATE. SO REALLY LOOKING AT THOSE PROGRAMS WITH A INDIVIDUAL BENEFIT VERSUS A 
          GREATER BENEFIT OR WHAT ARE BEING PROPOSED TO BE REDUCED. >> OKAY. AND THE REASON I ASK THAT QUESTION IS, YOU KNOW, AND I GUESS IN GENERAL FOR ALL THE PROGRAMS AS WE GO FORWARD IN, IN THE BUDGETING PROCESS, BOTH TODAY AND IN THE FUTURE BUDGET, WHERE WE'RE TRYING TO TIE IT ALL UP IN A BOW AT THE END, THE NUMBER OF SERVICES AND SORT OF SERVICE EVENTS, YOU KNOW, GOES TO THE BREADTH AND PENETRATION OF THE CITY'S ENGAGEMENT WITH THE CITIZENS. AND IT REALLY GOES TO ADDRESS SORT OF CROSS EQUITY ENGAGEMENT. YOU KNOW, SOME OF THESE SERVICES MAY ONLY COST A FEW THOUSAND DOLLARS, BUT THEY THEY THEY HAVE A WIDE, BROAD IMPACT, ESPECIALLY ON, ON FOLKS THAT WOULD NOT OTHERWISE GET ANY SORT OF COMPARABLE SERVICES AFTER SCHOOL CARE PROGRAMING IN THE PARKS AND REC LIBRARY SERVICES, THOSE SORTS OF THINGS TEND TO HAVE A DISPROPORTIONATE 
          [01:25:04]
NUMBER OF PEOPLE THAT IMPACT THEM FOR A SMALLER NUMBER OF DOLLARS COMPARED TO OTHER SERVICES. SO I WOULD REALLY BE INTERESTED IN THESE NUMBERS THAT YOU'RE SORT OF TALKING ABOUT THE NUMBER OF CONTACT EVENTS, THE NUMBER OF PEOPLE CONTACTED, THE BREADTH OF PEOPLE SO THAT WE CAN GAUGE WHAT ARE WE HAVING A DISPROPORTIONATE IMPACT, OR ARE WE TRYING TO SHAVE OFF SOMETHING WITH A VERY SMALL BUDGET THAT'S GOING TO HAVE A HUGE CULTURAL AND QUALITY OF LIFE IMPACT IN ORDER TO SAVE SOMETHING THAT THAT HAS MUCH LARGER BUDGET, THAT CAN COULD HAVE ABSORBED A LARGER CHANGE IN. SO I'D BE INTERESTED IN THOSE KINDS OF NUMBERS GOING FORWARD. AND THE OTHER REASON I WAS FOCUSED ON, ON. CLEAR CREEK IS, YOU KNOW, YOU AND I AND CASSEY HAVE BEEN IN DISCUSSIONS. WE POTENTIALLY LOST OUT ON THE OPPORTUNITY TO GET SUBSTANTIAL MILLIONS OF DOLLARS OF CORPS FUNDS OUT IN CLEAR CREEK BECAUSE OF THE LACK OF MAINTENANCE OUT IN CLEAR CREEK. AND SO WE DON'T WANT TO CUT OFF OUR NOSE TO SPITE OUR FACE ON OUR ABILITY TO GET OUTSIDE REVENUE AND TO BRING IN OUTSIDE TOURIST DOLLARS AND OUTSIDE STATE DOLLARS AND OUTSIDE FEDERAL DEPARTMENT OF INTERIOR DOLLARS, US DOLLARS, BECAUSE WE SKIMPED ON THINGS. SO 
          I WANT TO BE CAREFUL THERE. >> ARE YOU SAYING, COUNCILMEMBER, JUST ARE YOU 
          SAYING CORPS OF ENGINEERS? >> YEAH. >> YEAH, U.S. 
          >> ARMY. >> CORPS OF ENGINEERS. CORPS. BECAUSE I WAS LIKE, WHAT? 
          >> NOT US CORPS. >> YEAH. OKAY. THE CORP WHAT? YEAH. 
          >> IT'S ACRONYM THOUGH, IS WITH AN E, SO IT IS. >> THE I JUST WANT TO MAKE SURE. 
          >> BUT IT'S ACRONYM HAS AN E. SORRY, I DON'T WANT TO BE PEDANTIC ABOUT THAT, BUT YES, THE ARMY CORPS OF ENGINEERS. SO. AND THEN I GUESS SINCE WE'RE KIND OF ROLLING BACKWARDS, CAN AND I DON'T KNOW IF THIS IS A YOU QUESTION OR A JESSICA QUESTION. IT'S MY LAST QUESTION. 
          I KNOW WE'RE TRYING TO BE MINDFUL AND WE SHOULD BE MINDFUL OF OUR FUND RESERVE BALANCES, BECAUSE THAT GOES TO OUR CREDIT RATING. AND REDUCTIONS THAT ARE CREDIT RATING ARE JUST ACROSS THE BOARD BAD BECAUSE IT MAKES US MAKES US UNABLE TO, YOU KNOW, UTILIZE FUNDS EFFICIENTLY AND DOING SERVICES AND CAPITAL PROJECTS. BUT THAT SAID, DO WE HAVE CAN SOMEONE EDUCATE ME ON WHEN ONE DOES DIP INTO FUND BALANCES AND WHAT'S BEST PRACTICES FOR HOW MUCH ONE DIPS INTO FUND BALANCES? BECAUSE WE HAVE A GENERAL POLICY OF I THINK IT'S 20% CORRECT. 
          >> SO OUR POLICY IS 20%. IF WE WERE TO DIP INTO FUND BALANCE, SAY WE WERE LOOKING AT TAKING THE WHOLE LOSS, WE'D BE DOWN TO ABOUT 12.4%. TAKING HALF THE LOSS IS ABOUT 16%. SO OUR UNRESTRICTED FUND BALANCE IS THE ONLY SAVINGS ACCOUNT WE HAVE AVAILABLE THAT WE CAN USE FOR ANY CITY PURPOSE. SO WE PROTECT IT FOR THINGS LIKE A TORNADO. IF WE WERE TO PULL DOWN OUR FUND BALANCE, UNFORTUNATELY, WHAT WE WOULD SEE IS THAT IT WOULD BE THE THIRD YEAR IN A ROW. AS I MENTIONED, WE HAD TALKED ABOUT THAT NET LOSS LAST YEAR. WE HAD A LOSS OF 700,000 THE YEAR BEFORE. SO WE DON'T HAVE A FUNDING SOURCE NEXT YEAR TO SAY WHERE WE WOULD MAKE UP THE $7.3 MILLION IN THE GENERAL FUND TO BRING OUR FUND BALANCE BACK TO THE 20%. SO WHEN I'M TALKING TO A CREDIT RATING AGENCY, I WOULDN'T BE ABLE TO SAY I'M GOING TO HAVE A TEMPORARY ISSUE HERE, BECAUSE I'VE ACTUALLY KIND OF HAD A PROBLEM FOR A COUPLE OF YEARS, AND I DON'T HAVE A REVENUE SOURCE THAT I CAN IDENTIFY THAT WOULD REFILL THAT 7 MILLION. YOU WOULD BE LOOKING AT CUTTING AN ADDITIONAL 7 MILLION IN THE NEXT YEAR IN EXPENSE. DOES THAT MAKE SENSE? 
          >> OKAY. >> AND AS OUR RESERVES DROP, WE CAN GET TO A POINT WHERE WE DO HAVE SOME RISK WITH THE CREDIT CREDIT RATING AGENCIES TO DROP OUR CREDIT RATING. IF THAT OCCURS, THE COST OF BORROWING INCREASES. WE ARE, AS WE KNOW, VERY DEPENDENT UPON BORROWING, AND WE ISSUE CODES FOR THE UTILITIES ON THE CITY'S CREDIT RATING BECAUSE IT'S HIGHER THAN THE UTILITIES. SO THERE'S A SAVINGS THAT IS GENERATED. SO IF THAT RATING DROPS, THAT SAVINGS IS NO LONGER GENERATED. RIGHT. WE'RE GOING TO SPEND MORE TO BORROW. AND WHILE WE ARE WORKING DILIGENTLY TO SEE WHAT WE CAN DO ABOUT THE DEBT PORTFOLIO, IT IS WHAT IT IS TODAY. SO WE REALLY WANT TO PROTECT THAT UNRESTRICTED FUND BALANCE. AND WE REALLY YOU KNOW, I JUST ACTUALLY HAD AN OPPORTUNITY LAST WEEK TO MODERATE A PANEL FOR THE AMERICAN WATER WORKS ASSOCIATION WITH THE THREE CREDIT RATING AGENCIES. SO WITH REPRESENTATIVES FROM MOODY'S, FITCH AND STANDARD AND POOR'S. AND WE TALKED ABOUT THIS. AND REALLY YOU GET INTO THIS 14% RANGE, WHICH IS KIND OF THE MEDIUM BETWEEN THESE TWO. THAT'S WHEN YOU START GENERATING SOME 
          CONCERN. AND WE DON'T WANT TO BE IN THAT SITUATION. >> SO NO, I APPRECIATE THAT. IF 
          [01:30:08]
A PIECE OF INFORMATION THAT WOULD BE USEFUL TO ME AT LEAST IS AS WE GO INTO THE BUDGET, SORT OF WHAT WHAT ARE THE IMPACTS FINANCIALLY, I THINK YOU PUT IT IN ISR'S AND STUFF BEFORE. SO, SO MAYBE IT'S JUST A MATTER OF LOOKING IT UP AND REMINDING ME. AND THAT IS WHEN CREDIT VALUES CHANGE, WHAT IS WHAT IS THE FINANCIAL IMPACT OF THAT SHIFT. THAT'D BE USEFUL NUMBER GOING FORWARD. THE OTHER THING IN SORT OF THE ENTIRE PRESENTATION IS SORT OF A HOW CAN HOW CAN WE FIX GIVEN WHAT WE'RE DOING NOW. BUT THERE WASN'T A LOT OF, WELL, HOW DO WE GENERATE ADDITIONAL REVENUE IN THE FUTURE COMPONENT? SO WHEN WILL THAT BE INCLUDED IN IN WHAT 
          WE'RE DOING. >> SO THAT'S SO ECONOMIC DEVELOPMENT. I MEAN I'M YOU KNOW, I'M JUST GOING TO TRY TO KEEP MY MOUTH CLOSED. BUT WE ARE AT A SITUATION THAT MOST CITIES ARE FACING RIGHT NOW IN THE STATE OF TEXAS. WE'RE NOT THE ONLY CITY AND MOST HAVE A LOT LARGER DEFICIT. THE ONLY WAY YOU CAN CLOSE A GAP LIKE THIS IS TO LOOK AT HOLDING VACANCIES AND LOOKING AT PROGRAMS THAT ARE DUPLICATIVE, HAVE LOW ENROLLMENT, WHICH IS WHAT SHE'S DOING, AND LOOKING AT THE NATURE OF THOSE PROGRAMS. AND IF THERE'S OTHER PROGRAMS THAT ARE BEING OFFERED BY OTHER ENTITIES, WHICH THAT GROUP OF DIRECTORS AND OUR THREE, THE ASSISTANT CITY MANAGER AND DEPUTY CITY MANAGERS HAVE SPENT AN ENORMOUS AMOUNT OF TIME PUTTING ALL THIS TOGETHER. SO ONE, WE HOLD PEOPLE'S POSITIONS, WE DON'T LOSE REDUCTION IN FORCE. WHICH OTHER BUSINESSES ARE DOING? REDUCING FORCE, CUTTING PEOPLE'S JOBS. 20,000 PEOPLE WERE CUT FROM ONE OF THE DELIVERY SERVICES UPS. AND THEN OTHER CITIES ARE HAVING TO LAY PEOPLE OFF WHEN THEIR GRANT FUNDED AND OTHER THINGS LIKE THAT. SO THE WHOLE IDEA WAS NOT TO DO REDUCTION IN FORCE. NUMBER TWO WAS TO PRESERVE OUR VACANCIES SO THAT ONCE THE THAT THINGS GOT BETTER, WE COULD START MOVING PEOPLE IN IT. BUT TO FILL THE FRONTLINE POSITIONS FIRST, WHICH MEANS MAKING SURE THAT OUR FRONTLINE PEOPLE WHO ARE DOING THE JOBS, LIKE GOING AND DOING THE TRASH PICKUP, COVERING AND CLEANING OUR PARKS, THOSE PEOPLE STAY IN THEIR JOBS AND THOSE POSITIONS. WE WILL FILL OVER ADMINISTRATIVE POSITIONS AND SUPERVISORY POSITIONS THAT WE FEEL LIKE WE CAN SIT ON. THE ONLY WAY WE'RE GOING TO GENERATE MORE REVENUE IS A NEW H-E-B, WHICH IS COMING, BUT NOT UNTIL LATE 26. CONTINUED DEVELOPMENT LIKE THE HUNTER LANDMARK DEVELOPMENT AND REDEVELOPMENT AND REINVIGORATION OF THE DOWNTOWN SQUARE, AND THEN LOOKING AT EVENTS LIKE WHAT WE HAVE WITH HALLOWEEN THAT WILL GENERATE HEADS AND BEDS AND SALES TAXES. THERE IS NO MAGIC BULLET OR ANY MAGIC PROGRAM THAT WILL DO THAT FOR US. AND I'LL BE REALLY HONEST, I THINK I SAID THIS TO YOU. THIS IS ABSOLUTELY NECESSARY. WHAT WE'RE DOING RIGHT NOW, ZERO BASED BUDGETING. WE OWE IT TO OUR COMMUNITY AND OUR CITIZENS TO DO THIS. AND WE NEED TO LOOK AT THOSE PROGRAMS THAT ARE DUPLICATIVE, AND WE NEED TO LOOK AT HOW WE'RE DOING BUSINESS SO THAT WE NEVER HAVE TO SIT IN THIS ROOM AGAIN AND DO THIS. BUT WE HAVEN'T. WE'VE CHARGED UP DEBT THAT WE SHOULDN'T HAVE DONE. WE HAVE HIGHER DEBT. WE HAVE A LOW BALANCE. AND OUR OUR ENDING FUND BALANCE SHOULD BE MUCH HIGHER THAN IT IS RIGHT NOW. AND THIS PUTS THE CITY AT RISK. AND SO FOR ME AND YOU KNOW, I AM A SHORT TIMER HERE, BUT I'M THE FUTURE OF THE CITY. AND THE SUSTAINABILITY OF THE BUDGET IS RELIANT ON HOW WELL WE MAKE THESE REDUCTIONS. AND THE ONES THAT CAN STAY IN PLACE NEED TO STAY. AND THEN WE NEED TO BUILD OUR FUND BALANCE, AND WE NEED TO LOWER OUR DEBT BECAUSE THE CITY HAS GOT TOO MUCH DEBT. AND WHEN YOU HAVE TOO MUCH DEBT, THAT KEEPS GOING UP AND UP AND UP, AND THEN YOU HAVE TO PAY THAT DOWN AND WE CAN'T KEEP UP. AND SO THE ONLY WAY TO DO THIS IS ECONOMIC DEVELOPMENT, WHICH IS BRITTANY KNOCKING IT OUT OF THE PARK. AND WE'VE GOT THAT COMING HOUSING WHICH IS COMING AND THEN OTHER REDEVELOPMENT PROJECTS. BUT IT'S NOT GOING TO HAPPEN NEXT YEAR. IT'S GOING TO HAPPEN MAYBE NEXT YEAR LATE FOR SALES TAX. BUT THAT'S REALLY IT. SO THEN WE HAVE TO GO BACK AND LOOK AT WHAT ARE WE DOING. WE SHOULDN'T BE DOING ANYMORE. WHAT ARE WE DOING THAT ISN'T REALLY VALUED BY OUR COMMUNITY ANYMORE? WHAT ARE WE DOING THAT'S DUPLICATIVE THAT WE DON'T NEED TO DO BECAUSE SOMEONE ELSE IS DOING IT AND PROBABLY DOING IT BETTER THAN US, AND WE'RE NOT TRANSPORTING KIDS IN A IN A VAN. AND SO ALL OF THESE THINGS ARE THINGS THAT WE HAVE TO REALLY LOOK AT. AND WE DON'T LIKE ANY OF THEM. WE DON'T LIKE ANY OF THEM. WE DON'T LIKE TO HAVE TO SIT ON POSITIONS. BUT TO BE REAL HONEST, I'M PROUD OF THE STAFF. I'M PROUD OF THE DIRECTORS, I'M PROUD OF THE ACMS AND THE DCMS BECAUSE THEY MADE SOME HARD DECISIONS THAT KEEP THIS CITY GOING IN THE RIGHT DIRECTION, BUT MAINTAIN AND TAKE CARE OF A DEFICIT THAT AT $14 MILLION IS UNHEARD OF, AND NOT BEING ABLE TO HAVE TO CUT POSITIONS. AND SO NO, WE'RE NOT GOING TO GIVE MERITS. NO, WE'RE NOT GOING TO GIVE COST OF LIVING. BUT BUT WE'RE GOING TO PRESERVE PEOPLE AND JOBS, AND WE'RE GOING TO LOOK FORWARD TO A BETTER YEAR IN 27, 26, 27. BUT IT WOULD BE IRRESPONSIBLE OF US, ANY OF US, TO SAY THAT EVERYTHING'S GOING TO BE ROSY, BECAUSE IF WE TOUCH 
          [01:35:03]
THAT FUND BALANCE, IT WILL BE AT RISK FOR ANY FUTURE LOANS. IF WE DON'T BUILD OUR FUND BALANCE, WE'RE GOING TO BE AT RISK ANYWAY. AND IF WE DON'T LOOK AT HOW WE'RE DOING BUSINESS AND REALLY FOCUS IN ON THINGS THAT ARE VALUED MOST BY OUR COMMUNITY, WHICH WE KNOW ARE ROADS, MULTIMODAL, SAFE AND CLEAN PARKS, THE BASIC CORE SERVICES, THEN I THINK WE'RE GOING TO BE RIGHT BACK. Y'ALL GOING TO BE RIGHT BACK HERE NEXT YEAR AT THIS TIME, GOING THROUGH ANOTHER REDUCTION. AND I WISH I HAD A BETTER OUTCOME. BUT IT IS THE TRUTH. AND ANY WAY WE SLICE THIS PIE, IT'S NOT A PRETTY PICTURE BUT IT IS THE TRUTH. AND I WANT TO MAKE SURE THAT, YOU KNOW, WE'RE DOING THE BEST WORK TO MAKE THAT GAP CLOSE AND TO MAKE IT WORSE, NOT HURTING PEOPLE. BECAUSE TO ME, OUR BIGGEST, OUR BIGGEST ASSET IN THIS ORGANIZATION IS THE PEOPLE. 
          AND THE LAST THING I WANT TO DO IS LOSE PEOPLE. AND SO THAT'S WHAT WE'VE DONE, IS TO TRY TO 
          AVOID THAT. THAT'S THAT'S IT. >> OKAY. ANY OTHER QUESTIONS? REPRESENTATIVE FROM DISTRICT 
          FOUR THEN FIVE. >> CHRISTINE, PLEASE. THE SLIDE 22 THE AMBASSADOR PROGRAM. AND IN LIGHT OF WHAT THE CITY MANAGER HAS SAID, I'M ABSOLUTELY EMBARRASSED TO EVEN BRING THIS UP. BUT I'M HERE'S WHAT I'VE HEARD FROM FROM MY FRIENDS DOWNTOWN. EVERYBODY SEEMS TO LIKE THE AMBASSADOR PROGRAM. I HAVEN'T HAD ANYBODY TELL ME THEY DON'T. THEY DON'T LIKE IT, BUT NOBODY KNOWS HOW TO FUND IT. THE BUSINESSES DOWNTOWN DON'T FEEL LIKE IT'S THEIR RESPONSIBILITY TO SHOULDER THAT EXPENSE. JOHN. Q TAXPAYER ACROSS TOWN DOESN'T WANT A TAX INCREASE TO FUND A PROJECT ON THE SQUARE. YOU AND I HAVE SPOKEN ABOUT THE POSSIBILITY OF USING HOT FUNDS TO FUND OR PARTIALLY FUND THE AMBASSADOR, MAYBE A MAYBE A SCALED BACK AMBASSADOR PROGRAM. 
          COULD COULD YOU COULD YOU DISCUSS THAT, PLEASE? >> YES. SO THE AMBASSADOR PROGRAM WOULD BE AN ELIGIBLE EXPENSE FOR THE HOTEL OCCUPANCY TAX FUNDS UNDER A COUPLE CAVEATS. IF IT'S SCALED DOWN TO THE SQUARE, THEN IT FITS THAT PROMOTION OF TOURISM. THE HISTORIC PRESERVATION PIECE OF THAT. WHAT IT WOULD DO IS THOUGH IT WOULD NEED IT WILL BE EVALUATED AGAINST ALL THE OTHER FESTIVALS WHO APPLY FOR HOT FUNDS THAT THE COUNCIL AWARDS TO FOR SPONSORSHIP. SO IT'S AN ELIGIBLE USE, BUT IT WOULD NEED TO BE EVALUATED AGAINST ALL THE OTHER APPLICATIONS WHO ARE TYPICALLY SPONSORED THROUGH HOTEL OCCUPANCY TAX FUNDS. 
          >> OKAY, BUT BUT IF IT'S RESTRICTED TO THE TO THE TO THE DOWNTOWN SQUARE. 
          >> YES THAT'S CORRECT. >> IT WOULD IT WOULD BE ELIGIBLE. YES. DOES IS HOW HOW 
          WIDE IS THE DOWNTOWN SQUARE INN FOR PURPOSES OF THIS. >> WE NEED TO LOOK AT WHAT BOUNDARY. WE HAVE SEVERAL BOUNDARY MAPS THAT HAVE DIFFERENT BOUNDARIES FOR THE DOWNTOWN. I IMAGINE IT WOULD BE THE SQUARE PROPER AND MAYBE ONE, 1 OR 2 BLOCKS OFF. 
          >> OKAY. >> YEAH. THE CURRENT BOUNDARY FOR THE AMBASSADOR PROGRAM IS VERY LARGE AND EXPANDS OVER TO QUAKERTOWN PARK, HENCE THE LARGE EXPENSE. SO IT WOULD CERTAINLY IF THE COUNCIL WOULD LIKE TO CONSIDER THAT AS PART OF THE HOT FUNDS EVALUATION ALLOCATION PROCESS, WE CAN BRING THAT FORWARD, BUT IT WOULD NEED TO BE A SCALED DOWN PROGRAM, AND IT 
          WOULD BE COMPETITIVELY EVALUATED WITH ALL OTHER APPLICATIONS. >> I APPRECIATE THAT, MR. MAYOR. 
          I WOULD LOVE TO GET FEEDBACK FROM OTHER COUNCIL MEMBERS ABOUT ABOUT THEIR IMPRESSION OF THE OF 
          THE AMBASSADOR PROGRAM. >> CERTAINLY. THANK YOU. REPRESENTATIVE DISTRICT FIVE. 
          >> JOHNSON. RIGHT NOW FOR YOU, COUNCILMEMBER HOLLAND, TO HIS POINT. WE'RE SCALING BACK SOME 
          IN-HOUSE PROGRAMS. I THINK IT WAS $50,000. >> FOR CLEAR. CLEAR CREEK IS ONE 
          OF THEM. THAT'S A 50,000. YES. >> DOES THAT PROVIDE ENOUGH SAVINGS WITH NOT HAVING TO ADVERTISE FOR THOSE EVENTS IN HOT FUNDS TO THEN TRANSFER OVER TO BE USED FOR AN AMBASSADOR 
          PROGRAM? I DON'T KNOW IF THAT'S A IF. >> WE WERE COUNTING ON BOTH 
          REDUCTIONS OUT OF THE GENERAL FUND. SO IF YOU. >> SO WE NEED BOTH. 
          >> WE NEED TO LOOK FOR FURTHER REDUCTIONS IN ANOTHER PROGRAM. >> OKAY. I DO APPRECIATE YOU 
          TRYING TO BE INVENTIVE AND THINK ABOUT HOW WE HOW WE GET THERE. >> ON THE HOT FUNDS, THOUGH IS NOT PART OF THE GENERAL FUND HOLLAND IS ASKING FOR. IS THERE AN INTEREST IN LOOKING AT FUNDING IT FROM HOT FUNDS, WHICH WOULD BE OUTSIDE OF THE GENERAL FUND? 
          >> I GUESS I'M I'M OPEN TO THE DISCUSSION. I'VE HEARD MIXED REVIEWS ABOUT THE AMBASSADORS PROGRAM. I RECOGNIZE THE NEED, BUT I ALSO RECOGNIZE PROBABLY PERHAPS A EQUALLY IMPORTANT NEED 
          [01:40:01]
FOR COMMUNITY BUY IN. SO IF THAT'S A DISCUSSION THAT WE WANT TO HAVE THE PLEASURE OF THE MAYOR, I'M HAPPY TO HAPPY TO HAVE THAT DISCUSSION AS WELL. I WAS JUST GOING TO ASK A GENERAL QUESTION. I APPRECIATE ALL THE WORK THAT YOU AND ALL THE DEPARTMENTS HAVE DONE FOR THIS. 
          AND MISS CITY MANAGER, I APPRECIATE THE COMMITMENT TO NOT CUTTING A SINGLE PERSON. YOU KNOW THAT THAT IS WHAT I NEED IN ORDER TO GET BEHIND THIS. SO JUST GENERALLY, I KNOW WE'RE PROBABLY GONNA DEAL WITH THIS IN GREATER DETAIL, BUT HOW'S THE SAUSAGE MADE? HOW DOES ALL OF 
          THIS HAPPEN? >> WELL, EACH DEPARTMENT STARTS PROBABLY IN JANUARY, EVALUATING, GOING THROUGH EACH LINE OF THEIR BUDGET, WORKING THROUGH WORK PLANS. WHAT ARE THE COUNCIL PRIORITIES? HOW DOES THAT PLAY INTO OUR WORK PLANS? MAKING SURE THAT WE HAVE ENOUGH FUNDING TO MAINTAIN THOSE SERVICE LEVELS. EVALUATING ANY PROGRAMS. A BIG PIECE OF OUR PROGRAM EVALUATION ON THE PARK SIDE IS THE COST RECOVERY COMPONENT. SO A LOT OF WORK EXAMINING THOSE FEES, EXAMINING THOSE EXPENDITURES, LOOKING AT THE INCREASED COST FROM THE BUDGET OFFICE ON IMPACTS TO PERSONNEL FOR HEALTH CARE, THOSE ADDITIONAL REDUCTIONS WERE REALLY SCRUBBED BY THE DEPARTMENTS. I WOULD SAY IT WAS A SEVERAL MONTH LONG PROCESS. THOSE WERE SUBMITTED. 
          WE HOLD BUDGET HEARINGS WITH EACH DEPARTMENT, WITH CITY MANAGEMENT GOING THROUGH LINE BY LINE, LOOKING AT WHAT IS EXPENDITURE HISTORY LOOK LIKE, WHAT IS SERVICE LEVELS LOOK LIKE. AND THEN THIS YEAR WE TOOK IT A STEP FURTHER AND CREATED THAT ADDITIONAL TASK FORCE TO GIVE A GREATER GLOBAL PERSPECTIVE OF HERE ARE THE REDUCTIONS WE'RE PUTTING FORWARD. WHAT SHOULD WE ANTICIPATE? DOES THIS MAKE SENSE? SO I WOULD SAY IT'S BEEN AN ALL HANDS ON DECK PROBABLY SINCE JANUARY OF WORKING TO HOW DO WE MITIGATE WITH THE MIDYEAR STRATEGIES AND HOW DO WE CLOSE THE GAP FOR NEXT YEAR, UNDERSTANDING THAT NOBODY WANTS TO MAKE THESE REDUCTIONS IN EVERY SINGLE ONE OF THEM ARE TOUGH TO PUT FORWARD. 
          >> EVERY. I WOULD IMAGINE MOST CITIES IN THE STATE ARE LOOKING AT THIS. ARE THERE DIFFERENT DISCUSSIONS THAT ARE HAPPENING AMONG YOUR FELLOWS, CITY MANAGERS, AS TO HOW YOU KIND OF MEET SOME OF THESE NEEDS? SHARING BEST PRACTICES WITH OTHER ICMA AND OTHER 
          ORGANIZATIONS YOU'RE INVOLVED IN? >> YEAH, AND AS A MATTER OF FACT, I WAS ON A CALL JUST RECENTLY WITH ICMA, AND THEY HAD TO MAKE OVER $2 MILLION IN REDUCTIONS JUST AT ICMA BECAUSE OF FEDERAL GRANTS AND THINGS THAT THEY ARE NOT RECEIVING. SO IT'S AFFECTING NONPROFITS. IT'S AFFECTING ALL OF US. YOU SAW THE EMAIL FROM PAT SMITH AND THE THINGS THEY'VE HAD TO CUT WITH, SERVED IN CITIES ACROSS THE STATE ARE FACING ANYWHERE FROM WHAT WE'RE FACING TO 30 TO $70 MILLION DEFICIT. AND A LOT OF IT IS THE LACK OF FEDERAL FUNDING FOR GRANTS. BUT ALSO IT IS IN AUSTIN. IT'S A HEALTH DEPARTMENT THAT HAS FUNDING. POSITION POSITIONS ARE FUNDED THROUGH FEDERAL GRANTS, AND THOSE ARE NOT GOING TO BE AVAILABLE. SO 22 PEOPLE ARE LOSING THEIR JOB. AND SO FOR US, WE'RE VERY, VERY LEAN ON THAT GRANT SIDE FOR POSITIONS. BUT FOR US IT IS IT'S EVERYONE'S KIND OF DOING THEIR OWN THING. THAT'S WHY WHEN I MEET WITH THE WOMEN IN LEADERSHIP, WE TALK ABOUT WHAT EVERYONE'S FACING FROM A BUDGET PERSPECTIVE, AND THEN WE TALK ABOUT HOW THEY'RE DEALING WITH IT. AND MOST OF THEM ARE DOING THE SAME THING WE'RE DOING, WHICH IS TRYING NOT TO DO REDUCTION IN FORCE, BUT TO FOCUS ON DUPLICATIVE SERVICES, THINGS THAT ARE NOT CONSIDERED PRIORITIES BY THE PUBLIC, WHICH WE KNOW THAT'S SOMEBODY LOVES IT. WE KNOW THAT. I MEAN, WE DON'T LIKE ANY OF THIS STUFF WE HAVE TO DO, BUT IT'S REALLY IT'S REALLY A RUBIK'S CUBE TRYING TO MAKE IT WORK AND THEN HOPE AND PRAY THAT IN A YEAR AND A HALF, WE'RE NOT WHERE WE ARE SO THAT WE CAN START SLOWLY, STRATEGICALLY BUILDING BACK THE RIGHT WAY. WE GOT A LITTLE OVER OUR BRITCHES HERE, QUITE 
          FRANKLY. >> AND CASSEY MADE ONE COMMENT TO ME EARLIER. I WANTED TO REMIND THE COUNCIL OF WHEN COUNCILMEMBER BECK WAS ASKING ABOUT USE OF FUND BALANCE. SO IN PRACTICE IN THE PAST, WE'VE ONLY USED THAT FOR ONE TIME EXPENSES AND NOT THOSE ONGOING RECURRING. 
          >> MY LAST QUESTION IS INSURANCE. CORRECT ME IF I'M WRONG. EVERY YEAR THAT I'VE BEEN HERE, WE HAVE HAD INCREASES TO INSURANCE, AND I SEE THAT IT LOOKS LIKE WE HAVE BUDGETED THE SAME AMOUNT OF MONEY. SO HOW CAN WE ACCOUNT FOR A AN ESTIMATE OF INSURANCE NOT INCREASING? 
          >> THAT IS A FUTURE DISCUSSION ON THE HEALTH INSURANCE FUND. THE HUMAN RESOURCES DEPARTMENT MANAGES THOSE BENEFITS AND THEY GO OUT FOR PROPOSALS. THEY LOOK AT DIFFERENT PROGRAMS. HOW CAN WE INCENTIVIZE DIFFERENT BEHAVIORS. SO THEY ARE DOING A LOT OF WORK TO HOW DO WE HAVE THE BEST SUSTAINABLE PROGRAM ON ON THOSE RATES. SO WE'RE STILL WORKING ON THOSE CHANGES. AND THE HEALTH INSURANCE FUND IS A CONVERSATION WE'LL HAVE LATER IN THE SUMMER. 
          >> SO THIS NUMBER IS VERY LIKELY TO CHANGE. CORRECT. >> IT'S A PLACEHOLDER. 
          >> THANK YOU. THANK YOU. >> ANY OTHER QUESTIONS. REPRESENTATIVE FOR DISTRICT SIX. 
          >> THANK YOU COUNCILPERSON JESTER. WELL AND I WANT TO ECHO THE APPRECIATION FOR THE REALLY TOUGH WORK OF GOING THROUGH AND FINDING THINGS. NO ONE WANTS TO CUT ANY SERVICES. WE ONLY WANT TO INCREASE AND TRY TO MAKE PEOPLE HAPPY AND SAFE. SO I WANT TO START BY JUST SAYING THANK 
          [01:45:02]
YOU. I DO HAVE A COUPLE OF COMMENTS AS WELL AS QUESTIONS BEGINNING WITH THE AMBASSADOR PROGRAM, COUNCILPERSON HOLLAND ASKED FOR FEEDBACK. I WOULD SAY THAT THE FEEDBACK I'VE RECEIVED, INCLUDING LETTERS, EMAILS AND CONVERSATIONS, HAVE BEEN POSITIVE. I THINK THE DOWNTOWN AREA HAS VERY MUCH APPRECIATED, WHETHER IT BE THE CAMPUS THEATER OR JT CLOTHIERS OR OTHER PROPERTY OWNERS DOWNTOWN, THEY HAVE VERY MUCH APPRECIATED THE ATTENTION. I THINK THIS WILL BE. 
          I THINK THIS WILL BE NOTICED. HOWEVER, WITH THE PRICE TAG, I DID ISSUE OR MADE A REQUEST. IS IT POSSIBLE THAT NUMBER ONE COULD BE USED AND MAYBE NARROW THE SCOPE OF WHERE? I MEAN, MAYBE IF IT DOESN'T GO ALL THE WAY TO QUAKERTOWN PARK, MAYBE IT'S JUST THE ACTUAL SQUARE AND MAYBE THE NEXT BLOCK OR SOMETHING LIKE THAT. BUT SO JUST TO SAY THAT I CERTAINLY UNDERSTAND THE NEED TO CUT THIS AMOUNT OF MONEY FOR THE AREA THAT IT BENEFITS. HOWEVER, I AM CERTAINLY OPEN TO DISCUSSIONS ON TRYING TO MAKE IT WORK IN A DIFFERENT MODEL. AND I SAW YOU KIND OF SHAKING YOUR HEAD, SO I DON'T KNOW IF YOU WANT TO RESPOND TO THAT BEFORE I GO ON. 
          THANK YOU. >> AS WE WERE RESEARCHING AND LOOKING AT SUSTAINABLE FUNDING SOURCES IN TEXAS, THE AMBASSADOR AMBASSADOR LIKE PROGRAMS IN OTHER COMMUNITIES ARE PREDOMINANTLY FUNDED FROM PUBLIC IMPROVEMENT DISTRICTS. WE SAW A FEW, I THINK MAYBE 1 OR 2 OTHER EXAMPLES WHERE THERE'S A COMBINATION OF FUNDINGS WHERE THERE'S A PUBLIC IMPROVEMENT DISTRICT WITH A SMALL SUPPLEMENT FROM A GENERAL FUND OR A HOT FUNDS, BUT FOR THE MOST PART, THEY ARE FUNDED THROUGH PUBLIC IMPROVEMENT DISTRICTS. WE DO THINK IF WE SCALE IT DOWN, IT MEETS THOSE REQUIREMENTS TO BE FUNDED FROM HOT FUNDS. I DID DO A QUICK REVIEW OF OUR TRES PROJECT AND FINANCING PLAN, AND AT FIRST GLANCE, I DON'T THINK IT'S ELIGIBLE. THERE'S TWO SPACES WE'LL LOOK AT JUST TO SURE THAT UP, BUT MOST OF THE FUNDING FOR THAT FUND, THE HOPE IS THAT IT'S INVESTED IN INFRASTRUCTURE OR DEVELOPMENT, WHICH THEN WILL CONTRIBUTE BACK TO THE TERS. BUT I GET THERE'S A PIECE OF THIS COULD INCREASE THE TOURISM PART. SO THAT QUESTION HAS COME UP. SO RIGHT NOW STAFF'S FIRST RECOMMENDATION OF COURSE WOULD BE THE PUBLIC IMPROVEMENT DISTRICT. BUT THAT HAS TO BE SPONSORED AND BROUGHT FORWARD BY THOSE BUSINESS OWNERS. THEY'RE NOT INTERESTED. HOT FUNDS IS CERTAINLY AN APPLICABLE USE. SO WE CAN EXPLORE THAT AND BRING THAT FORWARD. IF IT'S A PROGRAM AND WE KNOW WE CAN'T SUSTAIN IT IN 
          THE GENERAL FUND. >> WELL, I AGREE THAT IT AT THIS AMOUNT CANNOT BE SUSTAINED, OBVIOUSLY, IN THE GENERAL FUND. HOWEVER, ONE OF THE BEST THINGS WE CAN DO IS TO CONTINUE TO TRY TO BE CREATIVE AND MAKE THINGS WORK THE BEST WE CAN. SO JUST WANTING TO CONTINUE THE REVITALIZATION OF OUR DOWNTOWN AREA AND MAKE IT INVITING TO PEOPLE. BUT I APPRECIATE ALL THAT YOU'RE DOING AND TRYING TO PUT A CIRCLE IN A SQUARE HOLE OR SOMETHING LIKE THAT. NEXT, I WANTED TO CLARIFY ON THE AFTER SCHOOL PROGRAMS THAT THAT WOULD BE SHIFTED TO THE CITY OF DENTON, AND I CAN I CAN APPRECIATE THAT. WE'VE GOT TWO GROUPS SERVING SOME OF THE SAME COMMUNITY. EARLIER, IT WAS SAID THAT PEOPLE ARE NOT GOING TO LOSE. WE'RE NOT LOSING POSITIONS. IS THAT TRUE WITH THESE AFTER SCHOOL POSITIONS? ARE THERE ARE PEOPLE OKAY, SO. 
          >> THEY'RE NOT STAFFING. AND SO WHEN THEY WOULD GO TO HIRE, WE WOULD NOT DO THAT CALL FOR HIRE OF THOSE POSITIONS INTERNALLY. WE'VE TALKED ABOUT PARKS AND ANYONE WHO'S ON STAFF, THERE WOULD BE OPPORTUNITIES TO GO WORK AT A REC CENTER OR TRY TO ABSORB THEM, BUT THEY ARE SEASONAL POSITIONS. SO THE WHEN WE HIRE IT IS FOR SPECIFIC, YOU KNOW, YOU'RE WORKING AT THE WATER PARK FOR THAT SEASON OR YOU'RE WORKING FOR THE SCHOOL SEMESTER FOR THIS. IT'S NOT A 
          FULL TIME PERMANENT POSITIONS ASSOCIATED WITH THAT PROGRAMING. >> THANK YOU FOR THAT CLARIFICATION. AND WITH THE AFTER SCHOOL PROGRAMS, YOU MENTIONED THAT IF NEEDED OR IF THE INTEREST IS THERE, WE MAY STILL HOST ONE AT THE MLK CENTER. IS THAT CORRECT? 
          >> CORRECT. THEY SO WHEN WORKING WITH THE SCHOOL DISTRICT, ALL CAMPUSES THAT WE PICK UP FROM CURRENTLY THEY ALREADY HAVE ENROLLMENT AND CAN ABSORB OUR STUDENTS MAINTAIN THAT PROGRAM. 
          THEY DO NOT MEET THE NUMBERS CURRENTLY AT RIVERA. SO FROM WHAT I UNDERSTAND THEY WILL OPEN REGISTRATION. IF THEY DON'T HAVE THOSE NUMBERS, THEN WE WILL OFFER THE PROGRAM AT MLK, WHICH IS JUST WALKING ACROSS THE STREET FROM RIVERA TO MLK. BUT WE WILL CONTINUE OUR PROGRAMING THERE. SO THERE'S NOT A LOSS FOR AFTER SCHOOL CARE AT RIVERA ELEMENTARY. 
          >> OKAY. AND FORGIVE ME IF I'VE MISSED THIS. ARE WE CONTRIBUTING TO THE INDEPENDENT SCHOOL DISTRICT TO HELP COVER, OR ARE THEY OR THEY'RE JUST ABLE TO ABSORB WITH THEIR CURRENT 
          BUDGET. >> THEY'RE ABLE TO ABSORB BASED ON THEIR CURRENT FEES. THEY'RE ABLE TO RECOVER FOR THAT PROGRAM. SO WE WOULD NOT BE DOING ANY COST SHARING OR COST FUNDING. WE DO SOME COST SHARING IN THE SUMMER FOR SUMMER CAMPS, BUT FOR AFTER SCHOOL PROGRAM, 
          THEY WERE RUNNING A PROGRAM AND WERE RUNNING A PROGRAM. >> AND DO WE HAVE A WAY THAT WE 
          [01:50:04]
TYPICALLY COMMUNICATE WITH THOSE THAT UTILIZE THE AFTER SCHOOL PROGRAMS TO MAKE SURE THAT THEY UNDERSTAND THE ABILITY TO STAY AT SCHOOL, OR THAT THERE'S SOME KIND OF TRANSPORTATION IF IT'S NOT OFFERED AT THEIR SCHOOL TO AN AFTER SCHOOL PROGRAM OR I MEAN, I DON'T KNOW IF WE'VE GOTTEN THAT FAR AS FAR AS HOW WE'RE GOING TO COMMUNICATE AND TRY TO MAKE SURE THAT THERE'S NO 
          INTERRUPTION IF POSSIBLE. >> I DON'T THINK WE HAVE GOTTEN THAT FAR. WE ARE A LITTLE LATE IN THE GAME, BECAUSE I KNOW PARENTS PROBABLY ARE ALREADY THINKING AHEAD FOR NEXT YEAR. 
          WHERE DO I REGISTER? BECAUSE YOU WOULD HAVE REGISTERED WITH THE CITY OF DENTON VERSUS THE SCHOOL DISTRICT. SO WE IF WE IF WE'RE GETTING DIRECTION TO MOVE FORWARD WITH OUR RECOMMENDATION TODAY, WE'LL WORK ON THAT MESSAGING AND MAKE SURE OUR PROGRAM PARTICIPANTS ARE DIRECTLY CONTACTED. AND THEN JUST GENERAL INFORMATION TO THE PUBLIC OF YOU. IF YOU'RE INTERESTED IN AFTER SCHOOL, IT WILL BE HELD ON SITE AT THE ELEMENTARIES, AND YOU NEED TO 
          REGISTER DIRECTLY THROUGH DISD. >> AND I'M SO GRATEFUL FOR THE ISD TO OFFER THAT PROGRAM. I CAN'T IMAGINE WHAT A HUGE HELP THAT IS TO THE CHILDREN AS WELL AS THE PARENTS. SO VERY, VERY APPRECIATIVE OF THAT PROGRAM. MOVING ON TO EVENTS, I RECENTLY HAD SOME CORRESPONDENCE FROM ONE OF OUR LARGEST EVENTS HERE IN TOWN STATING THAT THEY RECEIVED, AND I'M NOT I'M NOT BLAMING ANYONE. I MEAN, WE'RE ALL PART OF THIS PROCESS, BUT RECEIVING FOUR MONTHS NOTICE THAT THEIR TYPICAL DONATIONS OR IN-KIND ASSISTANCE FROM THE CITY WOULD BE CUT. AND BECAUSE OF IT, ONE OF THE OLDEST, LARGEST EVENTS MAY NOT HAPPEN NOW. AND SO I'M NOT SAYING I HAVE AN ANSWER TO THE PROBLEM, BUT A SHORT NOTICE THAT DOESN'T REALLY SEEM FAIR TO CUT TO THAT EXTENT. AND I JUST WANTED TO KNOW BECAUSE, YOU KNOW, AND I KNOW WE HAVE TO MAKE TOUGH CHOICES. I KNOW THAT WE HAVE TO MAKE CUTS. BUT AT THE SAME TIME, I THINK WE ALL HAVE THOSE THINGS THAT WE'RE SEEING 
          IN THE BUDGET THAT ARE JUST VERY TOUGH. YEAH. >> WE HAD THOSE CONVERSATIONS THIS SUMMER WHEN WE TALKED TO COMMUNITY PARTNERSHIP. WE SAW A NEED THAT OUR PUBLIC SAFETY RATES WERE NOT IN LINE WITH THAT COST RECOVERY GOAL. AND SO WE REALLY NEEDED TO IMPLEMENT THOSE MID-YEAR, BUT DETERMINE THAT'S EVEN SHORTER NOTICE TO THOSE EVENTS THAT ARE ALREADY PLANNED THROUGH THE END OF THE FISCAL YEAR, IF CHANGES ARE MADE AND REDUCING THAT IN-KIND, THE INCREASE FEES, THOSE WILL BE EFFECTIVE OCTOBER 1ST. BUT WHAT HERE'S WHAT WE'VE DONE IN THE PAST. A COUPLE YEARS AGO, WHEN WE STARTED SAYING EVENT ORGANIZERS NEED TO PAY AT LEAST 50% OF THE PARK FEE, WHATEVER THEY OWE THE CITY, WE YOU HAVE A YEAR TO PAY THAT DIFFERENCE TO DO A PAYMENT PLAN TO WORK ON THAT. WE JUST ASK THAT THAT BALANCE BE PAID IN FULL BEFORE YOU'RE AWARDED A SPONSORSHIP AND THE NEXT YEAR. SO YET FOR EVENTS IN THE FALL, YOU ARE CORRECT. 
          WHAT WOULD GO INTO EFFECT WOULD IMPLEMENT LIKE OUR ARTS AND JAZZ DAY OF THE DEAD. THOSE WOULD BE 
          IMPLEMENTED OCTOBER 1ST AND AFFECT THEIR 2025 EVENT. >> AND LET ME ADD, I MET WITH THEM AND I HAD A VERY HONEST CONVERSATION. THERE'S A TWO SIDED COIN HERE. ONE IS THE RESPONSIBILITY OF THESE EVENTS TO TELL THE TRUTH ABOUT THE NUMBERS, THAT THERE'S EVENTS, AND TO PUT THE NUMBERS ON THERE THAT ARE ACCURATELY REFLECTING HOW MANY PEOPLE SHOW UP FOR THEIR EVENTS SO THEY CAN GET THE APPROPRIATE GRANTS. THE OTHER SIDE OF THE COIN IS THAT WAY. 
          THEN IT DOESN'T MISLEAD US. WHEN WE ASSIGN A FIRE, A FIRE, AMBULANCE OR TWO AMBULANCES AND FOUR DIFFERENT PARAMEDICS TO AN EVENT THAT DOESN'T NEED IT. RIGHT. BUT THE SAME MEETING I TALKED ABOUT, WHAT CAN WE DO TO HELP YOU? HOW ABOUT WE ADVERTISE MORE FOR YOU? HOW ABOUT I CO-SPONSOR A LETTER WITH YOU TO GET MORE SPONSORS? HOW ABOUT I HELP YOU IDENTIFY SOME OTHER SPONSORS? THIS IS A CRY FOR. TO BE REAL FRANK WITH YOU, I'M FRUSTRATED BECAUSE THIS IS AN EVENT THAT HAS EVERY OPPORTUNITY TO INCREASE AND PUT HEADS IN BEDS, BUT DOES NOT DO IT. AND SO WHEN I SIT AND TELL THEM THAT THE NUMBERS OF 200,000 PEOPLE IN ONE WEEKEND IS NOT ACCURATE, BUT THAT'S WHAT THEY HAVE IN THEIR PROMOTIONAL MATERIALS, IT'S NOT IT'S NOT FAIR. AND SO I, I HAD A VERY HONEST CONVERSATION AND SAID, LET ME KNOW WHAT I CAN DO TO HELP YOU SO YOU CAN GET THOSE NUMBERS. LET ME KNOW WHAT I CAN DO BY WRITING A LETTER, AND I CAN GIVE YOU SOME NAMES OF SOME 
          PEOPLE TO GET SOME SPONSORS. AND I'VE HEARD NOTHING. ZERO, ZILCH. >> I THINK MAYBE THEY'RE 
          REASSESSING IT AT THIS TIME. >> AND I TOLD THEM I THINK THEY NEED TO. 
          >> BUT I JUST FEEL WITH THAT KIND OF SHORT NOTICE, I'M JUST SAYING IF IT WOULD BE POSSIBLE TO STAIR STEP THAT MAYBE JUST TO PRESERVE IT, IT'S JUST IT'S JUST A THOUGHT. 
          >> I APPRECIATE. I MEAN I DO, BUT I JUST MY BIGGEST CONCERN IS WE HAVE BEEN LIMPING ALONG FOR YEARS, NOT CHARGING THE APPROPRIATE COST FOR POLICE AND FIRES, ASSIGNING A TWO AMBULANCES TO AN EVENT THAT DIDN'T NEED IT BECAUSE THEY SAID THERE WERE 300,000 PEOPLE THERE. 
          [01:55:04]
          >> I AND I AGREE WITH. >> YOU AND. I WANT TO DO WHAT'S RIGHT AND TO THIS COMMUNITY TO MAKE SURE WE'RE SPENDING THEIR TAX DOLLARS THE MOST EFFECTIVE AND EFFICIENT WAY. AND SO ONE IS THE EVENTS HAVE TO KIND OF RIGHT SIZE THEMSELVES. THE OTHER ONE IS WHAT CAN WE DO TO HELP? WE DON'T WANT TO JUST SAY, OH, SORRY. TOO BAD. THAT'S WHY WE OFFERED MORE SUPPORT FOR MARKETING. WE OFFERED OFFERED TO WRITE A CO-SPONSOR, YOU KNOW, WRITE A LETTER FOR CO-SPONSORSHIP TO SEE IF THERE'S ANY OTHER ENTITIES OUT THERE THAT HAVE JUST COME TO THE CITY THAT WOULD DO IT. AND SO BUT THEY'VE KNOWN THIS FOR A WHILE LONGER THAN THAT. AND. THEIR THEIR SPONSORSHIPS HAVE DWINDLED OVER THE LAST YEAR AS IT IS. AND THE PROBLEM IS THEY CANNOT RUN THOSE EVENTS ON THE BACK OF THE CITY. I'M JUST BEING HONEST. THEY ARE ALL RELYING ON THE CITY TO PAY FOR EVERYTHING AND THEN TO USE IN-KIND SERVICES. AND THIS IS WHAT HAS PARTIALLY PUT 
          US IN A MESS. >> AND I DON'T DISAGREE WITH YOU. I'M JUST SAYING IT'S TO ME IT'S JUST KIND OF THE TIMELINE OF GOING FROM 0 TO 60 WOULD BE MY ONLY THOUGHT IF THERE WAS A WAY TO MITIGATE THAT. BUT AGAIN, I KNOW WE'RE ALL HAVING TO GIVE UP THINGS THAT ARE VERY SPECIAL TO DIFFERENT PEOPLE BECAUSE OF OUR FINANCIAL SITUATION. AND I GET THAT LAST QUESTION IS WHAT EXACTLY DIRECTION IS BEING LOOKED FOR IN THIS CONVERSATION TODAY? 
          >> WE'RE LOOKING FOR SUPPORT TO PROCEED WITH THE RECOMMENDED REDUCTIONS THAT WE HAVE FOR THE GENERAL FUND SO FAR. AND IF THERE'S ANY LIKE THE AMBASSADOR PROGRAM, LOOKING AT IT 
          DIFFERENTLY, CLEAR CREEK DIFFERENTLY. >> OKAY. 
          >> LET ME JUST SAY THIS BECAUSE THIS WILL HELP. THE ONE OTHER THING IS, IF WE CAN GET THE RIGHT NUMBER, THEN WE DON'T HAVE TO ASSIGN THAT MANY PEOPLE, WHICH DOES SAVE THEM MONEY. SO FOR INSTANCE, IF WE ONLY GO WITH THE 200,000 FOR IN-KIND, THEN IF THEY HAVE TO PAY, YOU KNOW, INSTEAD OF SAYING THERE'S 300,000 PEOPLE HERE, THAT'S TWO AMBULANCES FOR EIGHT PARAMEDICS OR WHATEVER IT IS, THEY DON'T NEED THAT. THEY DON'T EVEN NEED AN AMBULANCE. AND SO THEY DON'T. 
          THAT COST WOULD GO AWAY. SAME THING FOR POLICE OFFICERS. IF THAT'S NOT THAT MANY PEOPLE THERE, THE NUMBER OF OFFICERS ASSIGNED WOULD BE LESS. SO THAT'S A LESS COST FOR THEM, ESPECIALLY IF THE IN-KIND IS NOT THERE. SO I TALKED TO THEM ABOUT THERE IS A SAVINGS HERE. WE HAVE TO DO A BETTER JOB OF EVALUATING THAT EVENT AND THE NUMBERS OF THAT EVENT, AND THAT HELPS THEM. 
          QUITE FRANKLY, IT'S NOT GOING TO SAVE THEM HUNDREDS OF THOUSANDS OF DOLLARS, BUT IT WILL SAVE 
          THEM SIGNIFICANT AMOUNT ON OVERTIME FOR POLICE AND FIRE. >> ANY OTHER. QUESTIONS IN 
          DISTRICT ONE? >> I GUESS I'LL CONCENTRATE ON A COUPLE OF THINGS. FOR ONE, THE DOWNTOWN, THE AMBASSADORS PROGRAM TO ADD MY $0.02 TO THAT. I KNOW THAT, YOU KNOW, IT'S VERY VALUABLE DOWN THERE, AND I'VE HEARD FROM CONSTITUENTS AS WELL. AND I APPRECIATE JUST EVEN THE THOUGHT OF TRYING TO KEEP IT AND JUST KIND OF REEVALUATING IT. BUT I DON'T WANT TO DO THAT AT THE EXPENSE OF HOT FUNDS, BECAUSE THOSE PEOPLE THAT, YOU KNOW, PUT THEIR HEADS IN THE BEDS AND ENTERTAIN US, YOU KNOW, WE ENJOY HAVING FUN AROUND HERE. WE LIKE FESTIVALS, WE LIKE GETTING TOGETHER AND TAKING, YOU KNOW, A STRESS BREAK. AND SO THOSE FUNDS HELPS THESE ORGANIZATIONS TO DO THAT. AND CONSIDERING USING SOME FUNDING, YOU KNOW, FROM THE AMBASSADORS PROGRAM AND PUSHING INTO THAT, I QUITE FRANKLY DON'T THINK THAT THAT'S VERY FAIR. BUT ALSO ON THE OTHER HAND, THESE TOP FESTIVAL PEOPLE, YOU KNOW, THOSE VERY LARGE ONES, I LIKE TO SEE THEM BE COMFORTABLE IN THE SPACE THAT THEY'RE IN BECAUSE IT IS IT IS A BREAK THAT WE NEED. AS FAR AS THE AND I'M ON THE ON THAT COMMITTEE AND I'M TELLING YOU, THAT IS A VERY INTERESTING COMMITTEE TO BE ON. IT'S FUN. AND WE REALLY APPRECIATE ALL OF THE WORKUR COMMUNITY IS PUTTING INTO IT. AND SO I JUST DON'T WANT TO LOSE THAT. I DON'T WANT TO LOSE THAT ENERGY FROM THOSE FOLKS. IT GIVES US SOMETHING TO DO. BUT THEN ON THE OTHER HAND, ARE THEY PUTTING THE HEADS IN THE BEDS? ARE THEY, YOU KNOW, BRINGING IN THE FUNDING THAT THEY NEED TO CONTINUE ON WITH SOME ASSISTANCE FROM THE CITY IN THAT REGARD? THEY'RE DOING THE WORK. SO AS FAR AS, AGAIN, THE AMBASSADOR PROGRAM, I WOULDN'T BE. YOU KNOW, I WOULDN'T BE TOO, TOO UPSET ABOUT IT NOT BEING FUNDED AT ALL. I THINK THAT WE WILL GET A, A REAL FIRSTHAND ON WHAT IT LOOKS LIKE 
          [02:00:08]
WITHOUT THEM. AND THAT'S ONE OF THE REASONS WHY WE BROUGHT THEM IN, BECAUSE THERE WAS A LOT OF COMPLAINTS. SO THAT'S GOING TO THAT'S GOING TO WAKE US UP FROM DOWNTOWN. AS FAR AS THE AFTER SCHOOL PROGRAM. I DON'T KNOW. I USE THE CITY OF DENTON AFTER SCHOOL PROGRAM, AND I MY KIDS HAD, YOU KNOW, WAS IN COMMUNITIES, IN SCHOOLS AND IN THE ED PROGRAM. AND SO I NEEDED AFTER SCHOOL PROGRAM FOR BOTH OF MY KIDS FOR A NUMBER OF YEARS. AND JUST EVEN THIS CONVERSATION JUST KIND OF MAKES ME SICK BECAUSE I KNOW HOW MUCH NEEDED IT IS. BUT I DO WANT US TO DO OUR DUE DILIGENCE AND CUT WHERE WE NEED TO CUT. AND I WOULD NOT I, CAN'T SAY TOTALLY NO TO SOMETHING LIKE THIS BECAUSE IT HAS SOMETHING HAS TO GIVE. MY QUESTION THOUGH, WAS ABOUT THE VEHICLES. I KNOW THAT THERE'S A NUMBER OF VEHICLES THAT THE CITY PURCHASED. I THINK THEY'RE 
          FAIRLY NEW AS WELL. A LOT OF VANS. >> WE HAVE A FEW FLEET, WE HAVE 
          A LARGE FLEET. >> A LARGE VANS AND A COUPLE WERE REPLACED TO BE ADA 
          ACCESSIBLE. >> OKAY. >> YES, WE ARE TRANSPORTING. WE HAVE STAFF DRIVING TO EACH OF THOSE ELEMENTARIES TO PICK UP THE PARTICIPANTS AND TRANSPORT THEM BACK TO THE REC CENTER. SO I JUST WANT TO CLARIFY THOUGH THIS DOES NOT IMPACT THE SERVICE LEVELS FOR AFTER SCHOOL CARE, IT JUST WOULD ONLY BE OFFERED THROUGH THE ISD ON CAMPUS. WE'RE 
          NOT IT'S NOT CHANGING SERVICE LEVELS TO THE COMMUNITY. >> SO DOES THAT JUST CLARIFY FOR ME. SO DOES THAT MEAN THAT THERE'S NOT GOING TO BE ANY TRANSPORTATION GOING ON? 
          >> I WILL 100% RUN THE PROGRAM. THE CITY WILL NOT BE PART OF IT. SO WE WON'T BE TRANSPORTING CHILDREN. ANY PARTICIPANTS WHO NEED AFTER SCHOOL CARE WILL REGISTER THROUGH THE ISD AND STAY AT THEIR ELEMENTARY SCHOOL UNTIL THEIR PARENTS PICK THEM UP. 
          >> SO WHAT'S GOING TO HAPPEN WITH ALL OF THOSE ADDITIONAL VEHICLES THAT WE'VE USED FOR 
          THIS PROGRAM? TRADITIONALLY. >> THE NEWER ONES WILL REDISTRIBUTE. WE HAVE OTHER DEPARTMENTS THAT UTILIZE VANS. POLICE WILL REDISTRIBUTE WHERE THEY'RE NEEDED, WHERE THERE WOULD HAVE BEEN A REPLACEMENT, AND THEN ANY SURPLUS ONES WE WILL AUCTION OFF AND RECAPTURE 
          THOSE PROCEEDS. >> OKAY. >> WELL, THOSE WERE THE TWO THINGS THAT LISTED HIGH ON MY PRIORITY LIST. OF ALL THE THINGS THAT WE'VE GOT TO TAKE A LOOK AT. SO, YOU KNOW, THANK YOU ALL FOR, YOU KNOW, THINKING THROUGH IT. 
          >> ANY OTHER QUESTIONS? MAYOR PRO TEM. >> JUST A COMMENT ON AMBASSADOR PROGRAM. I'M OPEN TO DISCUSSING IT FURTHER. CREATIVE IDEAS. I'M COOL. I'M TOTALLY GOOD WITH TALKING ABOUT IT FURTHER. YOU KNOW, I CERTAINLY DON'T WANT TO CUT ANY OF THE THINGS PRESENTED. 
          SO, AND I UNDERSTAND THE NEED FOR IT. AND I APPRECIATE THE EXPLANATION FOR THE REASONING AND ALL THE THOUGHT THAT WAS PUT BEHIND WHAT'S PUT FORWARD. ONE QUESTION I WANT TO THAT I WANT TO ASK IS WHAT HAPPENS IF AND I KNOW THIS IS UNLIKELY. MAGICALLY, THE DEFICIT DOESN'T TURN OUT TO BE AS BAD AS WE THOUGHT. YEAH, I KNOW IT'S NOT LIKELY, BUT LET'S SAY LET'S SAY THAT IT DID. WHAT WOULD BE THE PROCESS FOR DECIDING WHERE THIS UNANTICIPATED MONEY GOES? WOULD IT START AUTOMATICALLY GOING BACK TO STAFF? WOULD IT COME BEFORE CITY COUNCIL? WOULD WE MAYBE START OPENING UP SOME OF THESE PROGRAMS AGAIN? KIND OF. WHAT WOULD THAT LOOK LIKE IF WE MAGICALLY CROSS YOUR FINGERS? IT'S NOT AS BAD AS WE ARE FORECASTING. 
          >> WE'VE PRELIMINARY HAD THAT CONVERSATION WITH THAT STRUCTURE WOULD LOOK LIKE THE CITY MANAGER WILL HAVE A PRIORITY LIST WITH PUBLIC SAFETY. WE'VE TALKED ABOUT BEING OUR NUMBER ONE PRIORITY, BUT WE CAN BRING THAT BACK AS A FUTURE ITEM IN THE DISCUSSION OF HERE'S OUR PRIORITY. IF THINGS IF THE GAP TURNS OUT SMALLER, WE DON'T NEED TO MAKE THESE REDUCTIONS. HERE'S OUR PROPOSED PRIORITY AND GET COUNCILS FEEDBACK. SO I THINK THERE DEFINITELY ARE FUTURE OPPORTUNITIES. AND CERTAINLY AT THE BUDGET, THE BUDGET RETREAT WORKSHOP THAT HAPPENS IN AUGUST. 
          >> OKAY. ANY OTHER QUESTIONS FOR STAFF? REPRESENTATIVE TWO THEN FIVE. YEAH. WELL I MEAN IF JUST 
          BE IF YOU CAN BE SHORT AND TO THE POINT THAT'D BE GREAT. >> APPRECIATE I JUST WANT TO ADD TO THE COMMENTS ABOUT PUBLIC SAFETY, IF YOU DON'T MIND. SO WE'RE GOING TO LEAVE FIVE POSITIONS OPEN. I KNOW THAT THE POLICE CHIEF CAME BEFORE US A COUPLE OF MONTHS AGO AND TOLD US WE WERE ALMOST FULLY STAFFED. YES, I UNDERSTAND PUBLIC SAFETY IS NOT GOING TO BE COMPROMISED. 
          YOU JUST KIND OF TALK THAT THROUGH FOR THE BENEFIT OF THOSE NOT JUST HERE, BUT THOSE WHO MIGHT BE WATCHING AND WRITING ABOUT THIS CONVERSATION. SO THANK YOU. 
          >> I THINK I THINK THIS COUNCIL KNOWS THAT A PRIORITY FOR ME HAS ALWAYS BEEN MAKING SURE THAT WE HAVE ADEQUATE PUBLIC SAFETY, WHETHER POLICE, FIRE, EMS SERVICES, EVEN EMERGENCY MANAGEMENT. BUT WHEN YOU LOOK AT AT THIS KIND OF A DEFICIT AND THE REASON FOR THE DEFICIT, A 
          [02:05:04]
LOT OF IT IS OVERTIME AND POLICE AND FIRE, IT'S ONLY FAIR THAT THEY GIVE THEIR FAIR SHARE. NOW WE ARE NOT CUTTING POSITIONS IN POLICE. WE ARE FREEZING POSITIONS. AND THE CHIEF WORKED WITH HER EXECUTIVE TEAM TO FIND WHAT THEY BELIEVE TO BE THE REASONABLE HOLD OFFS, WHICH IS FIVE OFFICERS. THEN THEY HAVE SOME LIKE A DISPATCHER AND SOME OTHER THINGS THAT THEY FELT VERY COMFORTABLE IN NOT FILLING. THEY FILLED OTHER THINGS LIKE JAILERS AND THINGS THEY FELT WERE PRIORITIES. RIGHT NOW THEY HAVE 20 PEOPLE IN THE ACADEMY AND THEY HAVE, I THINK, UP TO FIVE THAT ARE TRANSFERS. SO THAT WILL PUT THEM IN A GOOD SPOT. AND THEY'VE ASSURED ME THAT THIS IS NOT GOING TO AFFECT THEIR ABILITY TO DO POLICING IN THE COMMUNITY. BUT I WILL SAY SHOULD THAT OCCUR AND WE START TO HAVE PROBLEMS, FRONTLINE POSITIONS ARE ALL THE ONES THAT WILL FILL FIRST. AND SO WE WILL NOT LET WE WILL NOT LET PUBLIC SAFETY SUFFER IN THE CITY, AND WE MAY HAVE TO SWAP OUT SOME POSITIONS IF WE DO. BUT THAT I WANT TO COMMEND OUR CHIEF OF POLICE AND OUR CHIEF OF THE FIRE DEPARTMENT, BECAUSE THEY HAVE BEEN TEAM PLAYERS ON THIS AND HAVE SAT AT THE TABLE WITH CHRISTINE, CASSEY AND FRANK AND THE BUDGET TO GIVE THEIR FAIR SHARE. AND THEY RECOGNIZE OVER THE LAST FEW YEARS THEY'VE, THEY'VE RECEIVED A LOT OF GOLDEN EGGS. AND SO THEY WERE WILLING TO COME TO THE TABLE AND DO THEIR PART TO MAKE THE REDUCTIONS. SO YOU HAVE MY, MY WORD THAT WE ARE NOT GOING TO AFFECT THE SAFETY OF THIS COMMUNITY. AND IF WE SEE THAT HAPPEN AND THE CHIEF CHIEFS SAY THIS IS A PROBLEM, THEN WE WILL 
          ADDRESS IT. >> AND, COUNCILMEMBER, THAT'S ONE OF THE BENEFITS OF CONTINUING THE MANAGED VACANCY PROGRAM IS THAT THAT PROVIDES THAT FLEXIBILITY TO THE CITY MANAGER TO IF THERE'S A NEED, WE CAN FILL POSITIONS AS WE RECOGNIZE SAVINGS. THANK YOU. 
          >> REPRESENTATIVE DISTRICT TWO. >> THANK YOU. I, I THOUGHT WE WERE INTERESTED IN DIRECTION, SO I WAS GOING TO PROVIDE SOME DIRECTION. I CAN I CAN GET BEHIND MOST OF THE STAFF RECOMMENDATIONS. I, I HAVE THE SAME QUALMS ABOUT CLEAR CREEK THAT WE HAD BEFORE. I THINK YOU'RE YOU'RE YOU'RE GOING TO YOU'RE AND IN GENERAL, I WOULD LIKE TO SEE US THE KIND OF GOING FORWARD IN BUDGETS DISCUSSIONS. WHERE IF YOU IF YOU CUT INTO THE BONE, YOU KILL A PROGRAM VERSUS TRIMMING THE FAT, WHICH IS THE ARGUMENT THAT'S ALWAYS MADE. BUT SOME PROGRAMS, IF YOU TRIM THEM, THEY'LL DIE AND THEN THAT SERVICE WON'T BE. AND SO THE IN THE DISCUSSION OF WHAT HAPPENS IF WE GET FUNDED, WELL, WE WON'T BE ABLE TO RECOVER BECAUSE THAT PROGRAM WILL JUST DIE BECAUSE IT DOESN'T HAVE ENOUGH MOMENTUM TO CARRY ON. SO I WOULD LIKE US TO BE MINDFUL AND COME UP WITH A METRIC FOR WHAT THAT LOOKS LIKE AS WE TALK ABOUT GOING FORWARD. AND I MEAN THIS ACROSS ACROSS THE BOARD, WHAT PROGRAMS DO WE HAVE THAT IF WE IF WE MAKE 2 OR 3% CUTS, WE'LL JUST KILL THE PROGRAM. AND SO I CAN GET BEHIND THE REST OF THE RECOMMENDATIONS. I CAN'T GET BEHIND THE CLEAR 
          CREEK ONE. >> OKAY. ANY OTHER QUESTIONS? COMMENTS. DIRECTION FOR STAFF. 
          OKAY. OKAY. YES. >> WE'LL LOOK AT OTHER. WE'LL LOOK AT OTHER OPTIONS TO SWAP OUT THE 50. I MEAN WE'LL HAVE TO ADD SOMETHING BACK IN. BUT IF WE PUT THAT BACK ON YOU KNOW SAYING WE'RE NOT GOING TO CUT THAT, WE ARE GOING TO CUT SOMETHING ELSE IN PARKS. SO WE'LL PUT WE'LL 
          COME UP WITH SEVERAL OTHER OPTIONS. >> YEAH. YEAH. IF I CAN JUST COME BACK. WELL FIRST, I HADN'T SEEN A MAJORITY OF PEOPLE EXPRESS THAT INTEREST. SO THAT WOULD BE MY CONCERN INITIALLY. BUT THEN ALSO HERE'S MY QUESTIONS. FIRST COMMENT I THINK IT'S NOTEWORTHY THAT THE CITY MANAGER TALKS ABOUT INCREASING ECONOMIC ACTIVITY, BUT ALSO THE KEY IS REDUCING SPENDING. AM I WRONG? YOU'RE RIGHT. YEAH. AND SO AND THE DEBT COMPONENT. SO THERE'S KIND OF A33 LEGGED STOOL STOOL THING. AND THEN I. I THINK I KNOW THE ANSWER TO THIS. THE $200,000 IN LEGAL FEES CAME FROM THE GENERAL FUND. YES. IN THE MARIJUANA LITIGATION. 
          >> I'LL LOOK MACK IS SAYING YES. >> YES, YES. RIGHT. AND THESE CUTS ARE HAPPENING FROM THE 
          GENERAL FUND. >> CORRECT. THESE ARE ALL GENERAL FUND REDUCTIONS. 
          >> SO THAT'S $200,000. THAT COULD HAVE GONE TO A LOT OF THINGS, BUT THE MAJORITY SAID, HEY, WE'RE GOING TO PUT IT TOWARDS ATTORNEY'S FEES. AND I THINK THAT'S IMPORTANT TO NOTE AS WE AS WE GO FORWARD. AND THEN I WILL SAY THIS ABOUT AMBASSADORS, I THINK IT'S GREAT. 
          BUT I ALSO AGREE THAT THEY WILL GO AWAY IN DECEMBER WITHOUT FUNDING UNDERSTANDING HEARD FROM THE FROM THE BUSINESSES AND WE'LL SEE WHAT THAT RESULT YIELDS. AND SO AFTER TWO YEARS THEY YOU KNOW AND SOMETIME MAYBE THE THERE'S NEW ENERGY FOR THE PID. AND IF THERE'S NOT THAT'S GREAT. BUT I THINK WE'LL WE'LL LET THAT PLAY OUT. I THINK THEY'RE DOING GREAT WORK. I THINK IT ADDS GREAT VALUE. SELFISHLY, I'M GLAD IT'S HERE TILL DECEMBER. I THINK, YOU 
          [02:10:06]
KNOW, AS LONG AS WE CAN HAVE THEM. I THINK THAT'S FANTASTIC. GETS US THROUGH CERTAINLY OCTOBER. I THINK THAT'S KEY AND I'D LOVE TO SEE THEM GO FORWARD. BUT I UNDERSTAND THE BUSINESS IF THE BUSINESSES DON'T SEE VALUE IN IT OR NOT WILLING TO DON'T SEE THAT RETURN ON INVESTMENT. I UNDERSTAND AND RESPECT THEIR DECISION. THEN I'D LIKE TO SEE IN A FOLLOW UP THE THREE YEARS OF DISCOVERY. PARDON ME, DISCRETIONARY SPENDING THAT WAS APPROVED. SO LAST THREE YEARS, WHAT DISCRETIONARY SPENDING DID DID, WAS WAS APPROVED. SO THAT I CAN SHARE THAT INFORMATION ON WHAT IN ADDITION TO OUR CORE SERVICES WAS PROVIDED OR FUNDED THEN. WHEN IT COMES TO FUNDING OPTIONS, LISTENING TO THAT DISCUSSION, I WOULD LIKE TO HEAR STAFF COME BACK OR STAFF JUST EVALUATE. I'M REAL SENSITIVE TO THE FACT AND THE MAYOR PRO TEM MAY ALREADY KNOW THIS, BUT JUST FOR WHAT IT'S WORTH, I THINK TO UPDATE EVERYONE. I THINK THIS YEAR WE GIVE DCTA $18 MILLION. 
          >> THAT'S 17 MILLION. >> YEAH, YEAH. AND SO THAT'S THAT'S JUST BECAUSE WE HAD GREAT SALES TAX. THEY GET A GREAT BIG CHECK. I WOULD LIKE TO SEE THEM MAYBE AS A RESOURCE WHEN WE'RE TALKING ABOUT EVENTS OR FUNDING SOMETHING LIKE THAT OR BRIDGING A GAP. SO FOR EXAMPLE IF ARTS AND JAZZ IS STRUGGLING TO RECONCILE THAT SUDDEN CHANGE, MAYBE THAT'S A WAY FOR THEM TO STEP UP. I KNOW THEY THEY DO THE OTHER GRANT THING, BUT AND IT'S NOT LOST ON THEM THAT THAT I THINK THEY NEED TO DO MORE FOR THAT MONEY THEY GET OR HAVE SOME ACCOUNTABILITY. WE DO GREAT IN SALES TAX. THEY GET A GREAT BIG CHECK AND THEN WE WORK WELL TOGETHER, CERTAINLY. BUT I THINK INSTANCES LIKE THIS, IT MAY BE A CHANCE FOR THEM TO I KNOW THEY HAVE THEIR OWN THINGS AND THEY'RE DOING THEIR OWN THINGS. BUT I THINK FROM A BRIDGE TYPE THING, HEY, HELP US OUT OR I DON'T KNOW THAT WE CAN WHAT ROLE WE CAN PLAY IN THAT CONVERSATION, BUT I WANT TO UNDERSTAND THAT. THEN ALSO, I WOULD LIKE TO SEE AND YOU'VE SAID IT BEFORE, A REPORT OF FUNDS THAT ARE FUNDED BY GENERAL FUND THAT ARE SEQUESTERED. SO MONEY THAT GOES FROM THE GENERAL FUND TO ANOTHER FUND AND SITS THERE AND WAITING FOR A PROJECT, RIGHT? OR ACCRUING. YES. I WANT TO UNDERSTAND IF YOU COULD SEND OUT THAT LIST OF THOSE FUNDS, BECAUSE THAT'S AGAIN ANOTHER RESOURCE TO ME. IF SO, IF WE HAVE MONEY SITTING IN FILL IN THE BLANK FUND AND THERE'S NO PROJECT IDENTIFIED FOR IT, YOU KNOW, BEFORE WE START TALKING ABOUT FUND BALANCE, YOU KNOW, I THINK WE NEED TO PUMP THAT BACK INTO THE GENERAL FUND AND HAVE THOSE DISCUSSIONS ON WHAT WE NEED TO DO WITH IT. BUT I THINK IF WE DON'T HAVE IDENTIFIED PROJECTS AND THAT'S NO DIFFERENT THAN TEX-DOT OR ANYONE ELSE, IF YOU DON'T HAVE AN IDENTIFIED PROJECT, THEY'RE NOT EVEN GOING TO CONSIDER YOU FOR GRANT. AND IF IT'S NOT SHOVEL READY, OFTENTIMES. SO I'D LIKE TO TAKE A LOOK AT THAT. AT LEAST UNDERSTAND WHAT THAT IS. AND THEN WHERE ARE WE WITH THE THIRD PARTY SECURITY THINGS. IF YOU CAN UPDATE ME ON THAT, BECAUSE I THINK THAT ALSO IS SAVINGS FOR OUR PEOPLE THAT ARE BOOKING EVENTS THAT THEY DON'T HAVE TO PAY OFFICERS. THEY CAN. AND I KNOW YOU SENT ME THAT INFORMATION THAT IT BOOKS DIRECTLY WITH OFFICERS, BUT I JUST WANT TO UNDERSTAND HOW WE GET THE CITY OUT OF THAT, OUT OF THE MIDDLE OF THAT. 
          >> MAYOR, I'VE MET WITH THE CHIEF ON THIS AND ASKED THE CHIEF TO WORK WITH THE MICHAEL CRONICK, WHO WORKS IN THE LEGAL DEPARTMENT, TO COME UP WITH THE HOW WE COULD DO IT. AND SO SHE'S 
          SUPPOSED TO BE WORKING ON THAT. I'LL BE REMINDING HER NOW. OKAY. >> THANK YOU, THANK YOU. AND THEN I ALSO I'VE SEEN A LOT OF WORK DONE. AND AGAIN THIS IS HISTORICAL LOOK AT IT. CITY HALL EAST AND THE POLICE STATION. WE HAD AN OPPORTUNITY WHATEVER THREE YEARS AGO TO REBUILD THAT BUILDING. AND THE COUNCIL AT THAT TIME CITY COUNCIL SAID, NO, WE'RE JUST GOING TO RENOVATE. 
          AND I SAW A WHOLE BUNCH OF DIRT AND A WHOLE BUNCH OF WORK BEING DONE. WHAT'S GOING ON OVER 
          THERE? I MEAN, IT'S GOT TO BE EXPENSIVE. >> IT'S A PLUMBING ISSUE UNDER 
          THE BUILDING. >> SO I'D LIKE TO KNOW WHAT WE SPENT ON DUCT TAPING THAT BUILDING TOGETHER AS A LESSON LEARNED. RIGHT? BECAUSE AGAIN, THAT GOES FOR MONEY THAT WE COULD HAVE SPENT ONE TIME BUILT IT, RIGHT, THAT WE SAID, NO, WE'RE GOING TO CUT CORNERS. SAVE MY WORDS, NOT NOT YOURS. AND THEN IT ENDS UP COSTING US. I MEAN, THAT NUMBER HAS GOT TO BE 
          HIGH. >> IT IS MAYOR. AND THE ANSWER TO THAT IS WE'LL GET YOU THE NUMBER. IT'S AN ONGOING NUMBER. AND WHAT YOU'RE SEEING OUT THERE ARE LINKS OF PIPE THAT HAVE BEEN PULLED OUT FROM UNDERNEATH THE BUILDING. AND THAT IS TRULY A LESSON, A VERY BIG LESSON LEARNED. AND THAT IS TO ALWAYS DO A FACILITY ASSESSMENT BEFORE YOU DECIDE TO PUT LIPSTICK ON A 
          PIG AND CALL IT PRETTY. >> YEAH. AND SAME THING. SO I WANT THAT NUMBER FOR THAT CITY HALL EAST. AND ALSO THEY'RE DIGGING OVER HERE AT CITY HALL. AND WE ALREADY KNOW CITY HALL IS A PROBLEM. BUT I WANT TO KNOW WHAT THAT NUMBER IS. IT IS COSTING US TO FIX WHATEVER THEY'RE DOING OVER. IT'S MACK. HE PROBABLY BROKE SOMETHING. IT'S OVER BY THE LEGAL 
          [02:15:02]
DEPARTMENT. YEAH. SO. AND THEN I WOULD. THE OTHER THING I'D LIKE BACK IS A LAND EVALUATION. 
          BECAUSE LIKE DONNELLYS LAND FOR WE PUT THE WE PUT THE BRIDGE FOR MAY HILL LIKE WE BOUGHT ALL OF 
          THAT RIGHT. >> THERE IS A CURRENT LAND OUT THERE EVALUATING ALL CURRENT PARCELS AND SEEING WHICH ONES WE NEED TO CONTINUE, OR WHAT COULD WE POSSIBLY LOOK AT SELLING. 
          >> OKAY. BECAUSE THE TWO ARE THAT. DONNELLY. I WOULD LIKE TO SEE WHAT WE OWN OVER THERE NOW THAT THE BRIDGE IS IN. AND I KNOW WE'RE TALKING ABOUT BRIDGE EXPANSION OR SOMETHING LIKE THAT, BUT WHAT'S THERE AND WHAT'S AVAILABLE BECAUSE I THINK THAT MAY BE AN OPTION. AND THEN I'M ALSO SPECIFICALLY INTERESTED IN THE GUN RANGE BECAUSE I THINK THAT AND THAT MAY BE GREAT FOR THE CITY TO HANG ON TO BECAUSE PROXIMITY TO THE AIRPORT, I JUST WANT TO BETTER UNDERSTAND THAT. 
          >> AND THAT'S ONE IN THE CURRENT YEAR THAT WE'RE INITIATING THE CLEANUP ON, AND THEN CAN LOOK AT 
          WHAT NEXT STEPS LOOK LIKE FOR THAT PARCEL. >> EXACTLY. OKAY. WELL, IF THEY'RE DOING IF THEY'RE SO YEAH, JUST WHATEVER WHATEVER WHATEVER THEY'RE BACK WITH THE EVALUATION. I DON'T WANT TO INTERRUPT THAT PROCESS. BUT THOSE ARE TWO THAT I'M BIRD DOGGING THAT I'D LIKE TO UNDERSTAND. SO OTHER THAN THAT THANK YOU VERY MUCH. GREAT PRESENTATION. APPRECIATE ALL YOUR HARD WORK AND TOUGH SUGGESTIONS. 
          >> SO NEXT STEPS. WE'LL BE BACK AT THE NEXT COUNCIL MEETING OF JULY 15TH TO GO OVER THE CAPITAL IMPROVEMENT PROGRAM UTILITY BUDGETS AT THE FOLLOWING MEETING. THAT BUDGET WORKSHOP WHERE WE HAVE THAT IN-DEPTH CONVERSATION ON THE CITY MANAGER'S PROPOSED BUDGET AND THEN ADDITIONAL FOLLOW UPS IN AUGUST AND THEN IN SEPTEMBER PRIOR TO ADOPTION. 
          >> GREAT. THANK YOU VERY MUCH. APPRECIATE IT. AND SO NEXT ITEM AND I'LL JUST BRING EVERYONE UP TO SPEED. SO THE CLOSED ITEM WAS A PLACEHOLDER. SO WE'RE NOT GOING TO BE TAKING THAT UP. IT WAS IT WASN'T PULLED ON THE CONSENT. SO THAT WE DON'T NEED TO DO THE CLOSED ITEM. WE HAVE 
          [D. Receive a report, hold a discussion, and give staff direction to explore the acquisition of an existing and/or proposed dispatchable electric generation facility.
   [Estimated Presentation/Discussion Time: 45 minutes]]
TWO MORE WORK SESSIONS. SO I'LL TAKE US TO OUR NEXT ONE WHICH IS D I'D 251105 RECEIVE REPORT, HOLD A DISCUSSION, GIVE STAFF DIRECTION TO EXPLORE THE ACQUISITION OF AN EXISTING AND 
          OR PROPOSED DISPATCHABLE ELECTRIC GENERATION FACILITY. >> MAYOR. CITY COUNCIL TONY PUENTE DE GENERAL MANAGER. THANKS AGAIN FOR YOUR TIME. DAN. IT'S BEEN A LONG DAY FOR YOU. 
          I'M TRYING TO BE AS EFFICIENT AS I CAN WITH THIS PRESENTATION. TO BEGIN, I JUST WANT TO MAKE SURE THAT WE'RE CLEAR. TODAY'S TOPIC IS REALLY TO ASK COUNCIL FOR DIRECTION TO EXPLORE OUR RESEARCH. THE ACQUISITION OF AN EXISTING OR PROPOSED DISPATCHABLE GENERATION FACILITY. THIS IS NOT FOR TO APPROVE THE ACTUAL PURCHASE, RIGHT. THAT IF THAT WERE TO COME, THAT WOULD COME MUCH LATER. I WILL SAY THAT AT THIS POINT WE WILL PRESENT KIND OF A NUMBER OF KIND OF POOL, IF YOU WILL, OF POTENTIAL CANDIDATES. YOU KNOW, AT THIS POINT, I'M NOT SURE THAT THERE IS AN OPPORTUNITY TO ACQUIRE ANYTHING. CERTAINLY THERE'S CHANGES THAT I'LL KIND OF TALK TO YOU ABOUT THAT HAVE HAPPENED AS RECENTLY AS THE LAST WEEK RELATED TO THE EPA AND DEPARTMENT OF ENERGY AS WELL. I DO WANT TO JUST REALLY QUICKLY KIND OF JUST KIND OF BRING YOUR ATTENTION TO THIS PICTURE THAT I HAVE HERE FOR YOU IN THIS PRESENTATION, YOU KNOW, OVER THE LAST SIX YEARS, YOU KNOW, AS A, AS A, AS A RECOVERING SOCIAL WORKER, WE'VE REALLY TRIED TO, WITH DME TO REALLY GET CONNECTED WITH THE COMMUNITY AND WITH OUR CUSTOMERS. AND SO, YOU KNOW, THIS IS THE KIND OF WORK THAT THAT OUR STAFF IS DOING ON THE COMMUNITY IS REALLY GETTING TO KNOW WHO OUR CUSTOMERS ARE. AND REALLY THAT IS OUR FOCUS. I WILL TELL YOU, WHEN OUR CUSTOMERS WERE SUFFERING THROUGH MINUS 6 DEGREES WEATHER, AND THEY CONTACTED US THAT OUR ROTATION INTERVALS WERE, WERE, WERE NOT, YOU KNOW, NOT LONG ENOUGH TO LET PEOPLE WARM THEIR HOMES. WE LISTENED TO THEM AND WE EXPANDED THAT THAT INTERVAL TO 45 MINUTES TO ALMOST AN HOUR. RIGHT. SO WE LISTEN TO OUR CUSTOMERS, WE KNOW WHO OUR CUSTOMERS ARE, RIGHT? WHEN OUR CUSTOMERS CONTACTED US ABOUT A DIALYSIS CENTER IN THE CITY THAT HAD ABOUT 50 CUSTOMERS THAT WOULD DIE, LITERALLY DIE IF THEY DID NOT GET DIALYSIS TREATMENT, WE WORKED WITH DOCTOR ROJAS, WHO'S THE MEDICAL DIRECTOR, TO GIVE THEM A BLOCK OF ENERGY A BLOCK OF TIME SO THAT THOSE 50 INDIVIDUALS COULD GET THEIR LIFE SAVING DIALYSIS WORK. AND NOT ONLY THAT, BUT CUSTOMER, YOU KNOW, PATIENTS OUTSIDE OF OUR OUTSIDE OF THE CITY OF DENTON AND CORINTH AND LEWISVILLE AND THESE OTHER AREAS CAME RIGHT HERE. RIGHT. SO WE KNOW OUR CUSTOMERS, WE KNOW WHO THEY ARE. RIGHT. AND THEN LASTLY, I WILL TELL YOU THAT ZERO DEATHS IN THE CITY OF DENTON DURING WINTER STORM URI. ZERO. RIGHT. AND IT'S BECAUSE OF THE WORK, I BELIEVE, THAT OUR STAFF DID IN ROTATING POWER AND MAKING POWER AVAILABLE RIGHT TO CUSTOMERS, EVEN WHEN WE KNEW THAT THAT POWER WAS GOING TO COST US $9,000 A MEGAWATT HOUR. RIGHT. WE PUT PEOPLE OVER PROFITS, RIGHT? AND WE RECOGNIZE THAT. SO I WANT TO MAKE SURE THAT COUNCIL UNDERSTANDS THAT 
          [02:20:01]
OUR PRESENTATION TODAY IS EXACTLY ABOUT THAT. IT'S ABOUT OUR CUSTOMERS. RIGHT. THE PEOPLE THAT WE KNOW, THE PEOPLE WHO ARE KIDS, GO TO GO TO SCHOOL WITH MY KIDS WHO WE WORSHIP WITH, WHO ARE OUR NEIGHBORS. RIGHT. BECAUSE MANY OF US LIVE IN THE CITY OF DENTON. RIGHT. AND THEN FINALLY, WHAT I'LL TELL YOU IS THAT REGARDLESS OF WHAT TODAY'S DECISION DIRECTION IS, OUR COMMITMENT AT DME, RIGHT? AND ALL MY STAFF AT DME IS TO CONTINUE TO DO THE VERY BEST WE CAN TO PROVIDE SAFE, RELIABLE AND AFFORDABLE POWER REGARDLESS OF WHAT TODAY'S DECISION IS. SO A COUPLE OF OBJECTIVES HERE. YOU KNOW, I CERTAINLY UNDERSTAND THAT THIS IS A COMPLEX TOPIC, AND WE'RE GOING TO TRY TO SIMPLIFY IT AS BEST WE CAN. AND SO WE'LL GET RIGHT INTO THIS. SO HOW DOES DME WORK. RIGHT. AND SO THIS IS JUST KIND OF AN EXAMPLE OF KIND OF HOW A KIND OF A NORMAL DAY WORKS. YOU KNOW THE GREEN LINES. AND HERE THE GREEN BAR LINES ARE THE RENEWABLES THAT WE OWN. THE BLUE LINE HERE IS OUR LOAD. THAT'S THE POWER THAT WE'RE BUYING TO SERVE OUR CUSTOMERS. AND THEN THIS BLUE BAR LINE THAT YOU HAVE HERE IS THE ENERGY CENTER. RIGHT. AND SO YOU CAN SEE HERE THAT EARLY, EARLY IN THE MORNING GOING INTO ABOUT 7:00 IN THE MORNING, THIS IS THE WIND, RIGHT. WIND STARTS TO DIE OUT. AND THEN ABOUT 7:00 IN THE MORNING, ALL OF A SUDDEN THE SUN COMES UP AND THE SUN IS OUT THERE PRODUCING POWER. RIGHT. AND THEN IN THE AFTERNOON AROUND 7:00, 730, WHEN THE SUN DIES OUT AND IT DIES OUT REALLY, REALLY QUICK ALL OF A SUDDEN, THEN WIND KIND OF SHOWS UP GENERALLY. RIGHT? SO IF THERE'S EVER A POINT WHERE, WHERE THERE IS NO WIND AND THERE IS NO, NO SUN, THOSE RESOURCES DON'T PRODUCE WHEN THOSE WHEN THOSE RESOURCES DO PRODUCE ACROSS THE STATE. THE COST OF POWER IS REALLY, REALLY CHEAP, RIGHT? I WANT TO BE CLEAR THAT RENEWABLES IN THE STATE OF TEXAS ARE A GOOD THING, RIGHT? THEY HAVE KEPT POWER LOW, RIGHT? SO POWER DURING THE DAY, BELIEVE IT OR NOT, BELIEVE IT OR NOT, POWER DURING THE DAY WHEN THE SUN IS BRIGHT AND BIG, RIGHT? THAT POWER SOMETIMES EVEN GOES NEGATIVE, RIGHT? AND SO UNDERSTAND THAT OUR PURCHASE POWER AGREEMENTS RANGE ANYWHERE FROM 20 TO $40, A MEGAWATT MEGAWATT HOUR. SO WE'RE BUYING THAT POWER THROUGH OUR PURCHASE POWER CONTRACTS. RIGHT. AND THEN WE'RE BEING PAID BY THE MARKET AT WHATEVER THE REAL TIME PRICE IS. AND SOMETIMES THE PRICES GO NEGATIVE. SO ON TOP OF THE 20 OR $40 THAT WE'RE PAYING FOR PURCHASE POWER, RIGHT. WE'RE ALSO NOW HAVING TO PAY THE MARKET TO TAKE THAT POWER OR THE POWER BECOMES CURTAILED. RIGHT. AND SO, SO WHENEVER THE WHENEVER THE WIND DOESN'T BLOW AND THE SUN DOESN'T SHINE. AND I AND I HATE THAT TERM, BUT I JUST USED IT. RIGHT. I WILL TELL YOU WHEN PRICES ALL OF A SUDDEN START CLIMBING ABOVE $30, THE DECK TURNS ON. RIGHT? AND I WANT TO BE CLEAR ERCOT DOESN'T TURN IT ON. WE TURN IT ON. RIGHT. YOU KNOW, OUR STAFF AND OUR ENERGY MANAGEMENT ORGANIZATION SENDS A SIGNAL, RIGHT, BASED ON THAT MARKET PRICE, RIGHT. THAT ALL OF A SUDDEN NOW IT'S IN THE MONEY. RIGHT. AND SO WHEN I TALK ABOUT THE DECK BEING IN THE MONEY, I'M TALKING ABOUT ABOUT $35 PER MEGAWATT HOUR PRICE. SO ONCE THE PRICE OF ELECTRICITY GOES ABOVE $35, THE DECK STARTS TO PRODUCE. RIGHT. AND SO IN THESE PRICES HERE, ONCE YOU SEE HERE IN THE BLUE, RIGHT, ALL OF A SUDDEN PRICES START TO CLIMB. AND THE DECKS IN THE MONEY. NOW OUR RENEWABLES ARE ALSO IN THE MONEY. RIGHT. I'M PAYING $20, $40. ALL OF A SUDDEN PRICES GO ALL THE WAY UP TO $4,500 ON THIS. THAT'S A GOOD DAY, RIGHT? AND I WILL TELL YOU, RENEWABLES. 
          THE RENEWABLES THAT WE HAVE TODAY ARE IN THE MONEY. THESE ARE RENEWABLE CONTRACTS THAT WE ENTERED INTO TEN YEARS AGO, RIGHT WHEN MAYBE THEY WEREN'T IN THE MONEY AT THE TIME, BUT THEY'RE IN THE MONEY NOW. RIGHT. AND SO THOSE ARE GOOD CONTRACTS AND THEY'VE BEEN HEALTHY FOR US. 
          BUT BUT I WILL POINT TO YOU THAT HERE IN THE RED LINE, THIS IS THE REAL TIME PRICES AS THOSE PRICES START TO CLIMB, RIGHT, LIKE IT DID HERE ON AUGUST 25TH OF 23. RIGHT. ALL OF A SUDDEN, ALL THESE GAPS WERE GAPS WHERE OUR DEMAND EXCEEDED, RIGHT, WHAT WE HAD PROJECTED. AND SO NOW WE'RE BUYING ALL THAT POWER IN THE OPEN MARKET. RIGHT? IN THIS PARTICULAR DAY ON AUGUST 25TH, THAT THAT FEW HOURS OF THAT POWER BEING UNCOVERED IN THIS TRIANGLE COST US ABOUT $1 MILLION. RIGHT NOW, THE DECK ON THAT PARTICULAR DAY, THE DECK ON THAT PARTICULAR DAY, AUGUST 25TH, MADE $2.7 MILLION, RIGHT? THE DAY BEFORE, $2.4 MILLION, AND THEN THE DAY AFTER $1.6 MILLION. THIS IS GROSS MARGIN. AND WE'LL TALK A LITTLE BIT ABOUT THAT. I ALSO WANT TO BE CLEAR HERE THAT HOW WE MANAGE OUR RENEWABLE RESOURCES, RIGHT, IS NO DIFFERENT THAN HOW WE MANAGE THE DECK, THEIR FINANCIAL HEDGES. RIGHT. AND BASED ON, YOU KNOW, VERY COMPLEX FORMULAS THAT I PROBABLY COULDN'T EVEN SPELL OUT COMPLETELY BY OUR AEMO. THERE'S DAYS THAT WE LET DO NOT 
          [02:25:05]
HEDGE, RIGHT. WE DON'T GO OUT THERE AND BUY FORWARD PRICES BECAUSE WE BELIEVE THAT THOSE RENEWABLES WERE PERFORMED RIGHT. AND SO WE USE A VERY, VERY SIMILAR TO HOW THE DECK WORKS. 
          SO WHAT IS OUR GENERATION NEED. AND WE'VE TALKED ABOUT THIS NOW ON JUNE 3RD. AND WE AND WE'VE TALKED ABOUT THIS NOW REALLY SINCE 2018. EXCUSE ME SINCE 2021 WE'VE WE'VE TALKED ABOUT OUR SHORT POSITION THROUGH VARIOUS DIFFERENT PRESENTATIONS, CERTAINLY RELATED TO LARGE LOADS, CERTAINLY RELATED TO OUR BUDGET AND CAPITAL PROGRAM AS WELL. BUT TODAY, WHERE WE SIT, WE HAVE A PEAK LOAD THAT THAT WE EXPERIENCED BACK IN AUGUST OF 23. INTERESTINGLY ENOUGH, AUGUST 23RD, DECEMBER 23RD WAS A WAS A VERY HOT, HOT YEAR. AND IT COST US $31 MILLION. BUT BUT BUT BASED ON THAT PEAK LOAD AND REMEMBER UTILITY UTILITIES BUILD CAPACITY GENERATION CAPACITY BASED ON PEAK LOAD. AND SO BASED ON PEAK LOAD WHAT WE HAVE TODAY IS 408MW OF PEAK LOAD AND 225MW OF DISPATCHABLE POWER. THAT'S THE DECK, RIGHT? THAT IS POWER THAT I CAN THAT WE CAN PUSH A BUTTON. RIGHT. AND IT STARTS TO PRODUCE. RIGHT. WE CONTROL IT. IT'S NOT SUBJECT TO, TO WIND SOLAR OTHER THAN WHEN IT DOESN'T SHOW UP. THE PRICE SIGNALS ARE THERE. SO WE ANTICIPATE THAT RIGHT NOW 183MW IS WHAT WE ARE SHORT TODAY. WE WERE PROJECTED BY 2033 THAT WOULD CLIMB TO 386 AND BY 2024 FOR THAT SHORT POSITION WITH A WITH A PROJECTED PEAK LOAD OF 900MW, WOULD BE 675MW SHORT. OUR NATIVE LOAD. THIS IS NON LARGE LOAD. CUSTOMERS RIGHT. SO ALL OTHER CUSTOMERS EXCEPT FOR LARGE LOADS WE WOULD ANTICIPATE THAT THEY WOULD THAT THAT WOULD GROW BY ABOUT 100MW BETWEEN NOW AND 2036 JUST TO MEET OUR LOAD RIGHT. OUR SHORT POSITION BY 2036, WE WOULD ESTIMATE THAT THAT WOULD BE ABOUT 280MW, APPROXIMATELY. AND THAT'S WHAT WE'VE COME UP WITH, THIS 300 MEGAWATT SHORTAGE. RIGHT. AGAIN, GIVE OR TAKE 100MW OF ADDITIONAL GROWTH COULD BE MUCH HIGHER. RIGHT. AND ALSO POINT OUT THAT IN OUR LOAD FORECAST, WE DON'T ASSUME ADDITIONAL LARGE LOAD GROWTH, RIGHT. LET ME JUST POINT OUT THAT IN THE DFW AREA ALONE, THERE'S PROJECTED TO BE OVER 10,000MW OF DATA CENTER DEVELOPMENT. AND JUST THE DFW AREA IN THE ENTIRE STATE OF TEXAS. IT'S LIKELY GOING TO EQUAL THE TOTAL AMOUNT OF GENERATION THAT'S AVAILABLE IN THE STATE OF TEXAS, RIGHT IN ABILENE. ABILENE HAS A HAS A DATA CENTER THAT'S GOING TO EQUAL ABOUT 40,000MW, RIGHT. SO LOTS OF DEVELOPMENT COMING IN. 
          WE CONTINUE TO SEE INTEREST EVEN IN DENTON, ALTHOUGH IT'S KIND OF IT'S KIND OF CHILLED A LITTLE BIT. RIGHT. WE HAVEN'T GOTTEN AS MANY PHONE CALLS. I THINK A LOT OF THEM ARE WAITING FOR SB SIX. 
          WE TALKED A LITTLE BIT ABOUT SB SIX AND THE LARGE LOAD INTERCONNECTION PROCESS. SO SCARCITY PERIODS, YOU KNOW, WE'VE I DID NOT SHOW YOU THE DUCK RIGHT. BUT BUT WE'VE TALKED ABOUT THE DUCK CURVE, THOSE THOSE PERIODS OF TIME OF 6 TO 10 P.M. WHICH ARE THE MOST CRITICAL DURING THE SUMMER. DURING THE WINTER IT'S ACTUALLY A TWO PEAK SITUATION, 7:00 IN THE MORNING TO NINE AND 6 P.M. TO TEN. THAT'S WHEN THERE'S NOT ENOUGH WIND, NOT ENOUGH SOLAR, AND PRICES SHOOT UP TO TRY TO GET THERMAL UNITS AND OTHER TYPES OF GENERATION ACROSS THE STATE. 
          BATTERIES, YOU KNOW, JUST A VARIETY OF OTHER RESOURCES OUT THERE. EVEN DEMAND RESPONSE COMES INTO PLAY WITH CRITICAL LOADS. THAT'S WHEN THOSE KICK OFF TO TRY TO TRY TO REDUCE THAT, THOSE THOSE PEAKS. AND IN WIND, SOLAR GENERATION REALLY NOT SUITED TO MEET THE NEED THAT WE BELIEVE WE HAVE BATTERY STORAGE. WE'LL TELL YOU THAT WE BELIEVE THAT THAT'S CURRENTLY MARGINAL, MARGINALLY VALUABLE. AND BY THAT, WHAT I MEAN IS THAT IN THE LAST SIX YEARS WE'VE DONE A NUMBER OF RFPS, THOSE RFPS THAT HAVE BEEN DONE. THE PROPOSALS THAT WE RECEIVED HAVE BEEN VERY EXPENSIVE. AND SO COUNCILS IN THE PAST HAVE CHOSEN NOT TO PROCEED WITH WITH AWARDING AN RFP FOR A BATTERY STORAGE FACILITY. I WILL TELL YOU THAT WE ARE IN THE MIDST OF AN RFP. NOW. WE'RE LOOKING AT A PARTICULAR A PARTICULAR STORAGE FACILITY THAT MIGHT VERY WELL BE VIABLE FOR US. IT MIGHT BE ECONOMICAL. SOME OF THE CHALLENGES THAT I POSED AT THE LAST MEETING IS THAT WE CONTINUE TO SEE CHALLENGES WITH POWER PURCHASE AGREEMENTS, RIGHT, AND PRIVATE PARTIES FULFILLING WHAT THEY SAY THEY'RE GOING TO DO RIGHT, AND NOT FORCE MATURING US RIGHT AND NOT, YOU KNOW, DELAYING THEIR PROJECTS BECAUSE THEY GET A BETTER DEAL SOMEWHERE ELSE. AND SO THOSE ARE SOME CHALLENGES THAT WE CONTINUE TO POSE. AND I WILL JUST TELL YOU THIS BATTERY STORAGE IS NO DIFFERENT, RIGHT. BUT WE HOPE THAT WE'LL BE ABLE TO BRING THAT BACK TO YOU FOR FURTHER CONSIDERATION AND DIRECTION. WINTER STORM URI, FOR SOME CONTEXT, COSTS $150 MILLION. WE FINANCED THAT OVER 30 YEARS. THAT PAYOFF IS GOING TO BE 2051. 
          [02:30:07]
THAT'S ABOUT $7 MILLION A YEAR OF ANNUAL DEBT SERVICE THAT'S INCLUDED IN OUR OPERATIONAL COSTS, AND IN SUMMER OF 23, COST US $31 MILLION. AND OVER JUST A SPAN OF A COUPLE OF WEEKS. AND WE FINANCED THAT OVER FIVE YEARS. PAYOFF IS 2029. THAT'S ABOUT $8 MILLION OF ANNUAL DEBT SERVICE THAT WE'RE LOOKING AT. SO PRIMARY NEED CONSIDERATION IS THE TYPE OF FACILITY THAT THAT OTHERS ARE FRANKLY, BUILDING. YOU KNOW, IF YOU LOOK AT SOME OF THE PROJECTS THAT I'M THAT THAT I'LL GO THROUGH QUICKLY AND THE, THE APPLIED TO THE TEXAS ENERGY FUND, MANY OF THOSE ARE QUICK START GENERATION FACILITIES. OTHER AREAS, CPS ENERGY, AUSTIN ENERGY, EVEN JUICE WHO WE JUST LOST ONE OF OUR EMPLOYEES TO BE THE GENERAL MANAGER OF JUICE IN IN GREENVILLE IS LOOKING AT A AT AT AT A NEW FACILITY BROWNSVILLE KERRVILLE PUBLIC UTILITY AND KERRVILLE, TEXAS IS THE ONLY MOU THAT ACTUALLY APPLIED FOR THE TEXAS ENERGY FUND. AND THEY'RE PROPOSING TO BUILD A QUICK START GENERATION FACILITY. LISTEN, SO THIS ISN'T SOMETHING THAT WE'VE JUST WOKE UP YESTERDAY AND ARE PROPOSING. WE'VE BEEN WATCHING THE MARKET OVER THE LAST SIX YEARS, SEEING THE REGULATORY ENVIRONMENT, LEGISLATIVE ENVIRONMENT, THE REDESIGN GO THROUGH UNTIL THE TIME WAS RIGHT. AND I'LL TELL YOU, OTHER UTILITIES ARE MOVING IN THIS DIRECTION. ONLY VIABLE ACQUISITION POSSIBILITY. OUR EXISTING NATURAL GAS FACILITIES ARE PROPOSED. NATURAL GAS FACILITIES. YOU KNOW, THERE ARE TWO NUCLEAR FACILITIES, BUT VERY UNLIKELY THAT THOSE WOULD BE AVAILABLE FOR ACQUISITION. AND THEN THERE'S ALSO COAL AND LIGNITE. I'LL TALK A LITTLE BIT ABOUT ABOUT THAT. I THINK THE ENVIRONMENTAL REMEDIATION COULD BE QUITE COSTLY, BUT CERTAINLY FROM A FROM AN ENVIRONMENTAL STANDPOINT, TAKING A COAL PLANT AND RETROFITTING THAT TO SOMETHING THAT HAS LESS EMISSIONS IS CERTAINLY A GAIN, REALLY. THE MOTIVATION AT CPS ENERGY IN SAN ANTONIO, THEY BOUGHT TWO LARGE COAL PLANTS WITH THE WITH THE PLAN TO REFURBISH THEM AND TO NATURAL GAS FACILITY NOT IN THE CITY OF DENTON. AND THE PRIMARY DRIVER BEHIND THAT IS THAT THERE'S ALREADY TWO FACILITIES IN THE CITY OF DENTON. WE DON'T NEED ANOTHER COMPETING FACILITY IN THE CITY OF DENTON. CITY DENTON'S ALSO IN A NON-ATTAINMENT AREA. IT WOULD FRANKLY LIMIT THE RUNTIME ON THAT FACILITY. IT WOULD COST CONGESTION. AGAIN, IT'S A COMPETING FACILITY WITH WITH THE TWO THAT ARE ALREADY HERE AND FRANKLY, FROM A FUEL STANDPOINT, CERTAINLY NATURAL GAS THERE'S LIMITED INFRASTRUCTURE. RIGHT. 
          AND SO THAT WOULD ADD ADDITIONAL COST TO EXTEND. AND SO THOSE ARE THE PRIMARY REASONS WHY WE DON'T BELIEVE THAT LOCATING SOMETHING IN THE CITY OF DENTON WOULD BE WOULD BE ADVANTAGEOUS. 
          ACQUISITION OF EXISTING FACILITY COULD POTENTIALLY BE A NET ZERO GAIN. RIGHT. SO IT'S AN EXISTING FACILITY THAT'S ALREADY THERE THAT'S ALREADY CAUSING EMISSIONS IN THE CITY. WE'RE NOT ADDING NEW TO THE ENVIRONMENT, BUT CERTAINLY IF WE THEN RETROFIT THAT, REDESIGN IT TO SOMETHING THAT'S CLEANER. CERTAINLY IF WE PURSUE NUCLEAR OR HYDROGEN DOWN THE ROAD, CERTAINLY I THINK THAT WOULD MAKE THE ENVIRONMENTAL IMPACT OF THAT FACILITY PUBLIC PUBLIC PUBLIC PARTNERSHIPS, PUBLIC PRIVATE PARTNERSHIPS COULD ALSO BE THINGS THAT MIGHT BE ON THE TABLE FOR ECONOMIES OF SCALE AND COST SHARING. AND THEN FINALLY, AS A MARKET PARTICIPANT, DME ALSO HAS A RESPONSIBILITY AS A AS A MARKET PARTICIPANT IN THE ERCOT GRID TO ENSURE THAT THERE IS SUFFICIENT POWER TO MEET ALL CUSTOMERS NEEDS, NOT JUST THOSE IN THE CITY OF DENTON. RIGHT. THERE'S PLENTY OF EXAMPLES, YOU KNOW, IN THE US, CERTAINLY ON THE EAST COAST WHERE THERE'S BEEN GRID FAILURES. WE CAME CLOSE WITHIN MINUTES OF A OF A MAJOR CATASTROPHIC GRID FAILURE RIGHT HERE IN THE STATE OF TEXAS THAT IF THAT HAD HAPPENED, RIGHT, IT WOULD HAVE LIKELY TAKEN MONTHS FOR US TO BE ABLE TO GET ALL THE POWER BACK ON TO ALL THE CUSTOMERS. SO CERTAINLY WE HAVE SKIN IN THE GAME, AS THEY SAY, RIGHT. TO ENSURE THAT THERE'S RELIABILITY AND ENOUGH POWER IN IN THE GRID TO MAINTAIN POWER TO ALL OUR CUSTOMERS. SO JUST FOR SOME COMPARISON PURPOSES PROVIDED TO YOU, KIND OF THE DECK PERFORMANCE, I WANT TO BE CLEAR HERE THAT, YOU KNOW, THE DECK IS NOT A STANDALONE FACILITY, RIGHT? IT'S NOT A STANDALONE BALANCE SHEET. YOU KNOW, WE'RE NOT ONLY A GENERATOR. RIGHT. AND SO THIS IS THIS IS ALL BAKED INTO OUR OPERATION. RIGHT. AND SO IT'S ON THE SAME BALANCE SHEET. BUT I THINK FOR ILLUSTRATION PURPOSES HERE I WOULD I'LL DRAW YOUR ATTENTION IS WHEN WE LOOK AT DECK WE'RE LOOKING AT THIS GROSS MARGIN. RIGHT. AND SO THAT GROSS MARGIN SINCE 2018 THE DECK HAS HAD GROSS MARGIN OF ALMOST $260 MILLION. RIGHT. THAT GROSS MARGIN, THE WAY WE ACCOUNT FOR THAT GROSS MARGIN IS WITHIN OUR 
          [02:35:04]
ECA CALCULATION THAT HAS GONE TO STABILIZE THAT ECA, RIGHT. AND KEPT IT AFFORDABLE FOR OUR CUSTOMERS. THE REST OF THIS OPERATION, CERTAINLY FROM A NET INCOME BASIS, JUST LOOKING AT, YOU KNOW, YOU INCLUDE ALL YOUR FIXED EXPENSES LIKE PERSONNEL AND MATERIALS. CERTAINLY THE DEBT FOR THE DECK IS INCLUDED IN HERE. THAT'S THAT ROUGHLY $17 MILLION. I WENT AHEAD AND JUST FOR ILLUSTRATION PURPOSES, SHOWED THE WINTER STORM URI DEBT AND ALSO KIND OF THE UPCOMING SUMMER 23 DATE. SO ON A NET INCOME BASIS OVER THOSE, YOU KNOW, ROUGHLY WHAT IS THAT, SEVEN YEARS, EIGHT YEARS, THE DECK ON AN INCOME BASIS IS STILL MADE $102 MILLION. RIGHT? SO CERTAINLY FROM A FROM A FINANCIAL STANDPOINT, THE DECK HAS HAS BEEN SUCCESSFUL GROSS MARGIN ON AVERAGE OVER THAT OVER THAT PERIOD OF TIME IS ABOUT $42 MILLION. AVERAGE PURCHASE POWER COST DURING THAT TIME IS ABOUT $108 MILLION. RIGHT. AND SO IF THE DECK WASN'T THERE AND I UNDERSTAND THAT LIKELY WE WOULD BE GOING OUT THERE AND ENTERING INTO OTHER FINANCIAL TRANSACTIONS, WE'D BE OUT THERE LOOKING FOR A PHYSICAL SECURING PHYSICAL ENERGY. LET ME BE CLEAR THAT THAT PHYSICAL ENERGY IS LIKELY GOING TO COME FROM NUCLEAR AND GAS AND COAL AND THOSE SAME KIND OF FACILITIES, RIGHT? THAT, THAT, THAT MAYBE SOME IN THE COMMUNITY MAY NOT WANT. AND SO THOSE ARE THE TYPES OF TRANSACTIONS THAT WE WOULD HAVE TO ENTER TO TRY TO SECURE THAT LOAD GOING FORWARD TO PROTECT OUR RATEPAYERS. I WILL TELL YOU, IN THE LAST SEVERAL MONTHS, ERCOT NOW OFFERS A NEW PRODUCT. IT IS A $350 A MEGAWATT HOUR FOR FIVE HOURS WORTH OF ENERGY. SO JUST FOR SOME CONTEXT, THAT 350 MEGAWATT HOUR COST EQUATES TO ABOUT A $35 ECA WHEN OUR ECA CURRENTLY IS 4.6. RIGHT. AND SO NOW IF THAT IF YOU BUY THAT POWER 350 MEGAWATT HOURS AND THAT POWER GOES UP TO $5,000, THAT'S BEEN A GOOD DAY, RIGHT? BUT IF YOU SPEND $350 AND THAT POWER GOES DOWN TO 30, THAT'S A PRETTY BAD DAY. AND I WILL TELL YOU THAT EVEN AT THE 350, WHEN IT'S AT 5000 MAY NOT NECESSARILY BE THE MOST ATTRACTIVE DEAL, BUT THOSE ARE THE TYPES OF THINGS THAT WE WOULD NECESSARILY THAT WE WOULD LIKELY HAVE TO LOOK FOR RIGHT TO, TO CONTINUE TO SECURE THE LOAD AND CONTINUE TO SECURE AND ENSURE THAT RATES ARE AFFORDABLE FOR OUR CUSTOMERS. SO JUST SOME POWER TRENDS. AND THIS IS JUST A RANDOM DAY THAT I PICKED AS I WAS PUTTING THIS PRESENTATION TOGETHER. SO THERE'S NOTHING DEVIOUS ABOUT WHY I PICKED THIS PARTICULAR DAY, RIGHT? OTHER THAN THAT, I THOUGHT IT WAS PRETTY NORMAL. AND SO AS YOU CAN SEE HERE, YOU KNOW, THIS WAS JUNE, JUNE 8TH, JUST A FEW DAYS AGO, 7:00. RIGHT? WIND IS ALMOST NONEXISTENT, ABOUT 2.1% OF TOTAL TOTAL GENERATION. BUT WIND WAS PRETTY HEALTHY THAT DAY AT 23%, BUT EVEN AT 7:00, NATURAL GAS WAS WAS PRETTY STRONG AT 51%. COAL AND NUCLEAR TEND TO STAY PRETTY PRETTY EVEN THROUGHOUT THE DAY AND NOONTIME. ALL OF A SUDDEN YOU START SEEING SOLAR JUMP UP TO 38.5%. YOU CAN SEE SOLAR RIGHT HERE. IT'S REALLY ROBUST AND REALLY STRONG DURING THOSE DURING THOSE PRODUCTION HOURS OF THE SUNLIGHT HOURS. BUT THEN WHEN THE WIND DIES DURING THE DAY, RIGHT ON THIS PARTICULAR DAY AS SOLAR DROPS OFF AND IT DROPS OFF PRETTY PRECIPITOUSLY, WIND SHOWS UP, RIGHT. AND SO WIND SHOWED UP ON THAT PARTICULAR DAY PRETTY STRONG AT 31% OF THE TOTAL LOAD. BUT YOU CAN SEE THAT NATURAL GAS, YOU KNOW, STAYED RELATIVELY FLAT. CERTAINLY OUR BASELOAD UNITS, COAL AND NUCLEAR STAYED. BUT BUT I WILL POINT OUT THAT EVEN IN THIS GRAPH, YOU CAN SEE THAT COAL CONTINUES TO DROP OFF. RIGHT. IT CONTINUES TO NOT BE AS PREVALENT AS, AS MAYBE A FEW YEARS AGO. ALTHOUGH I WILL POINT OUT BEFORE I GO THERE. SO THESE ARE THE HOURS RIGHT HERE FROM 7:00 TO ABOUT EIGHT, 9:00. YOU KNOW, THAT'S KIND OF CRITICAL. 
          THAT'S KIND OF THE, THE, THE FIRST KIND OF PART OF THE DAY, PART OF THE DAY THAT I'M GETTING THEY GET VERY NERVOUS CERTAINLY DURING THE WINTER. AND THEN AT NIGHT, IN THE AFTERNOON, YOU CAN SEE WHEN WIND DIES OUT, SUDDEN WIND SHOWS UP. THIS LITTLE RED SMIDGE HERE. THAT'S BATTERY. 
          RIGHT. SO ON THAT PARTICULAR DAY AROUND 8:00, BATTERIES COMPRISED ABOUT 1.3%. NOW, I'LL TELL YOU, BATTERIES CONTINUE TO BE DEVELOPED AND THEY CONTINUE TO HAVE KIND OF A BIGGER SHARE OF THAT. AND SO CERTAINLY THERE'S YOU KNOW, THAT IS THE FACT. AND I WANT TO MAKE SURE THAT THAT I'M CLEAR. I WILL SAY JUST REALLY QUICK THAT JUST IN THE LAST COUPLE OF DAYS, THE EPA DID ANNOUNCE. THE PROPOSAL TO RESCIND ALL GREENHOUSE GAS LIMITS FOR NEW AND RECONSTRUCTED GAS TURBINES AND EXISTING AND MODIFIED COAL AND OIL GAS FIRED POWER GENERATION UNITS. THEIR EPA, ONCE THEY POST THAT ON THE FEDERAL REGISTER, WILL HAVE ABOUT A 45 DAY PUBLIC COMMENT PERIOD. AND THEN AFTER THAT, LIKELY CERTAINLY WHAT THE MARKET BELIEVES IS THAT THOSE WILL GO 
          [02:40:05]
INTO EFFECT. WHAT THAT WILL ULTIMATELY MEAN IS THAT A LOT OF GAS, A LOT OF COAL PLANTS AND GAS PLANTS, BUT BUT COAL IN PARTICULAR, THAT WAS THAT WERE LIKELY GOING TO BE SHUTTERED ARE NOW GOING TO BE ECONOMIC. RIGHT. AND SO NOW SO I JUST WANT TO BE CLEAR. SO WHAT THAT DOES IS THAT THEN RAISES THE POTENTIAL ECONOMICS OR LOWERS THE POTENTIAL ECONOMICS OF AN ACQUISITION IN THOSE AREAS, JUST BECAUSE OF THE OF THE VALUE PROPOSITION. AND THEN FINALLY, I ALSO MENTIONED THAT THE DOE RECENTLY CANCELED ABOUT $3.7 BILLION OF GRANTS FOR CARBON CAPTURE AND DECARBONIZATION. DECARBONIZATION GRANTS, AND EVEN IMPACTING HERE IN THE STATE OF TEXAS, A FACILITY THAT'S OWNED, I THINK, BY CALPINE. BAYTOWN, TEXAS 550 MEGAWATT GAS FIRED PLANT NO LONGER HAS THAT. AND WITH THE CHANGES IN THE GREENHOUSE GAS EMISSIONS, LIKELY WON'T NEED IT ANYMORE. RIGHT? SO BUT CERTAINLY I JUST WANT TO POINT OUT THAT THE MARKET IS DYNAMIC. IT IS IT IS CONTINUALLY CHANGING. CERTAINLY FEDERAL REGULATIONS THAT WE'VE TALKED ABOUT ALREADY CONTINUE TO CHANGE THE MARKET PRICE TRENDS. AGAIN, JUNE 9TH IN PARTICULAR, YOU SEE THAT PRICES KIND OF STAY PRETTY MODEST DURING THE DAY. AND IN THE AFTERNOON THEY BEGIN TO CLIMB. THE DOTTED LINE IS WHAT'S CALLED THE DAY AHEAD FORECAST. SO ERCOT PROJECTS WHERE PRICES WOULD BE IN A DAY AHEAD MARKET AND IN THE SOLID LINE IS THE REAL TIME. AND SO IN THIS PARTICULAR DAY, WHERE PRICES AT PEAK LOAD WERE ANTICIPATED TO BE ABOUT $100 A MEGAWATT HOUR, THEY CLIMBED ABOVE 150. RIGHT. AND THAT'S THIS IS PRETTY COMMON EVERY SINGLE DAY DURING THE SUMMER FOR US. AND THEN ON JUNE 11TH, THIS WAS SOMETHING THAT CERTAINLY WASN'T WASN'T NECESSARILY EXPECTED. ALTHOUGH ERCOT DID PROJECT A LITTLE BIT OF A BUMP IN THE DAY, REAL TIME PRICES CERTAINLY SHOT UP NOW. THEY DIDN'T SHOOT UP QUITE AS HIGH AS AS WE'VE SEEN IN THE PAST, BUT CERTAINLY $70 DURING THESE PEAK, DURING THESE PEAK TIMES. AGAIN, ONCE YOU GET ABOVE $35, THE DECK IS, IS PRODUCING POWER IN THE MARKET. SO JUST SOME CONTEXT HERE ON KIND OF WHAT WE'VE LOOKED AT FROM A COMPARISON STANDPOINT. SO CURRENTLY I'M LOOKING AT A RESIDENTIAL CUSTOMER AVERAGE 1000 KILOWATT HOURS. OUR AVERAGE CUSTOMER IS ACTUALLY A LITTLE BIT HIGHER THAN THAT ABOUT 1050. BUT 1000 IS KIND OF THE NUMBER THAT'S USED ACROSS THE INDUSTRY JUST FOR COMPARATIVE PURPOSES. BUT CURRENTLY OUR CUSTOMERS ARE PAYING A TOTAL TOTAL FULLY LOADED RATE, ABOUT 14.2 CENTS. THAT COMES TO ABOUT A BILL OF ABOUT $142 FOR THE AVERAGE CUSTOMER. IF THE DECK WASN'T THERE, WE WOULD ANTICIPATE THAT THE ECA WOULD CLIMB TO ABOUT $0.15. THAT'S ABOUT A $96 INCREASE TO CUSTOMERS. IF THE IF THE DECK WASN'T THERE WITH ADDITIONAL GENERATION, WE CERTAINLY BELIEVE THAT THAT WOULD KEEP KEEP RATES RELATIVELY LOW. STILL A LITTLE BIT HIGHER, BUT CERTAINLY NOT, YOU KNOW, IN THE RANGE OF NOT HAVING A DECK. 
          WE WOULD ANTICIPATE ABOUT $12 INCREASE EVEN WITH ADDITIONAL GENERATION. THAT'S JUST BECAUSE OF THE CONTINUED INCREASE IN PRICE OF POWER. WITHOUT THE GENERATION, WE WOULD ANTICIPATE THAT WE COULD CLIMB TO ABOUT 15.4 CENTS. I THINK WHAT'S INTERESTING ABOUT THAT, NUMBER ONE OF THE COMPARISONS THAT WE DO IS WE CONTINUOUSLY GO AND LOOK AT WHAT IOUS INVESTOR OWNED UTILITIES ARE OFFERING OUT IN THE DEREGULATED MARKET. AND SO THIS PARTICULAR DAY THAT I LOOKED AT A 12 MONTH CONTRACT WAS AVERAGING ABOUT 15.5 CENTS. THAT'S ABOUT $151.50 OUT IN THE DEREGULATED AREA. CERTAINLY, YOU KNOW, THERE'S DIFFERENT MARKETING PLANS THAT IOUS PUT THAT THAT, THAT WAIVERS. BUT 15.1 CENTS IS KIND OF THE AVERAGE ON A 20 OR 24 MONTH CONTRACT. IT'S ABOUT 15.8 CENTS. AND SO AGAIN, JUST TO GIVE YOU SOME RELATIVE COMPARISON ON WHERE WE ARE, I THINK ONE OF THE CHALLENGES FOR CUSTOMERS IN DEREGULATED MARKETS IS ENSURING THAT THAT THEY STAY ON TOP OF THOSE CONTRACTS, THAT THERE IS NO LAPSE IN THEIR CONTRACT. 
          RIGHT? BECAUSE ONCE THERE'S A LAPSE IN THEIR CONTRACT, THEY GO LITERALLY TO THE HIGHEST RATE. 
          RIGHT? AND SO FOR JUST FOR COMPARISON PURPOSES PROVIDED HERE WAS CALLED THE POLAR RATE, THE PROVIDER OF LAST RESORT IN THIS AREA. IT'S TXU ENERGY. AND SO IF YOU'RE WITH A RETAIL ELECTRIC PROVIDER, PRIVATE RETAIL PROVIDER, AND THEY GO OUT OF BUSINESS AND YOU GO TO THE WHAT'S CALLED THE POLAR RATE, ALL OF A SUDDEN YOU'RE AT 19.8 CENTS, RIGHT? SO, SO PRETTY EXPENSIVE AGAIN IN THAT IN THAT DEREGULATED, DEREGULATED AREA, CUSTOMERS HAVE TO MAKE SURE THAT THEY'RE ON TOP OF THOSE CONTRACTS. AND THEY'RE CONTINUOUSLY CERTAINLY A LOT OF WORK ON THEIR BEHALF. HERE IN DENTON. THERE IS NO CONTRACTS. RIGHT. EVERYBODY PAYS THAT 14.2 
          [02:45:01]
CENTS ON THE RESIDENTIAL SIDE. RIGHT. AND THEN FOR COMMERCIAL, JUST SOME EXAMPLES HERE WE HAVE THREE COMMERCIAL CLASSES GENERAL SERVICE LARGE. THE AVERAGE USAGE. THERE IS A LITTLE BIT OVER 1100 KILOWATT HOURS. AND JUST FOR SOME POINT OF REFERENCE, SOME SOME OF THOSE BUSINESSES ARE PLACES LIKE BARBER SHOPS AND VET CLINICS AND, YOU KNOW, STORAGE FACILITIES. AND THEN YOU HAVE YOUR GSM OR YOUR GENERAL SERVICE MEDIUM, ABOUT 13.7 17I DO, I WILL POINT OUT FOR GENERAL SERVICE, MEDIUM AND LARGE CUSTOMERS ON TOP OF THEIR USAGE RATE, THEY'RE ALSO PAYING A DEMAND CHARGE, RIGHT. THAT RESIDENTIAL CUSTOMERS AND SMALL COMMERCIAL CUSTOMERS DO NOT PAY. BUT YOU KNOW BUT THERE YOU CAN KIND OF SEE THAT GENERAL SERVICE MEDIUM. YOU'RE TALKING NOW CHURCHES, SMALL BUSINESSES, MCDONALD'S, AUTOZONE, THOSE SORTS OF THOSE ARE THE EXAMPLES OF THE BUSINESSES THAT WOULD FALL IN THAT CATEGORY. AND THEN GENERAL SERVICE LARGE. CERTAINLY. YOU KNOW, AGAIN, THEY ALSO PAY A DEMAND CHARGE THOSE CUSTOMERS. NOW YOU'RE TALKING ABOUT UNT, PETERBILT. YOU KNOW, OUR HOSPITALS SOUTHWIRE ARE SOME OF THE SOME OF THOSE EXAMPLES THAT THAT I'LL PROVIDE. SO SOME SOME OF THE ACQUISITION CRITERIA THAT I KIND OF KIND OF GO THROUGH. AND I'LL SHOW YOU SOME MAPS OF, OF IF GIVEN DIRECTION TO EXPLORE WHERE WE MIGHT WANT TO EXPLORE, ONE CERTAINLY HAS TO BE IN THE ERCOT MARKET. RIGHT. 
          THERE'S AREAS OF THE STATE OF TEXAS, BELIEVE IT OR NOT, THAT ARE NOT IN ARCHIVE. I'LL KIND OF SHOW SHOW YOU THAT IN THE MAP. WE CERTAINLY BELIEVE THAT LOCATING SOMETHING WITHIN THE NORTH ZONE FOR CONGESTION PURPOSES WOULD BE MOST ADVANTAGEOUS. AND THEN, OF COURSE, I ALREADY STATED WHY NOT? IN THE CITY OF DENTON. AND THEN GENERATION TYPE WOULD BE SOMETHING THAT WE ALSO NEED TO, TO BE COGNIZANT OF AND TALK ABOUT NUCLEAR. THERE'S ONLY TWO OF THOSE. SO THOSE ARE LIKELY NOT COST OR COST LIKELY COST COST PROHIBITIVE. AND THEN YOU HAVE COAL AND LIGNITE. CERTAINLY. I THINK FROM AN ENVIRONMENTAL STANDPOINT, REMEDIATING, YOU KNOW, LIKE WE DID WITH WILLIAMS CREEK CAN BE A VERY EXPENSIVE PROPOSITION. BUT CERTAINLY TAKING AN EXISTING COAL LIGNITE PLANT AND CONVERTING IT TO SOMETHING CLEANER LIKE SAN ANTONIO HAS PROPOSED MIGHT BE SOMETHING THAT MIGHT BE ATTRACTIVE. BUT BUT AGAIN, I THINK AT THIS POINT, FROM OUR STANDPOINT, IT WOULD BE COST PROHIBITIVE AS WELL. 
          NATURAL GAS CERTAINLY THERE'S OVER 100 OF THOSE WITHIN WITHIN THE STATE OF TEXAS. I'LL TALK A LITTLE BIT ABOUT, YOU KNOW, SOME THAT ARE NOW DEFUNCT, BUT THOSE SITES ARE STILL THERE. THEY'RE THEY'RE CLOSE TO CRITICAL INFRASTRUCTURE THAT WOULD MAKE THOSE POTENTIALLY ATTRACTIVE. 
          THERE'S ALSO A NUMBER OF PROPOSED FACILITIES TO THE TEXAS ENERGY FUND. SOME OF THOSE HAVE NOW DROPPED OFF. AND BUT AGAIN, THOSE PLANS ARE LIKELY ON THE SHELF SOMEWHERE AND IN DESIGN, CERTAINLY LOOKING AT BASE LOAD VERSUS QUICK START GENERATION, CERTAINLY IF IT'S A BASE LOAD UNIT, WE THINK THAT THAT WOULD STILL BE A POTENTIALLY ATTRACTIVE FOR MEETING OUR ONGOING NEEDS. I THINK WHAT I MENTIONED TO YOU, YOU KNOW, KIND OF THE GENERAL RULE IS ONCE YOU GET TO ABOUT 1200 MEGAWATTS IN PEAK LOAD, THAT'S WHEN REALLY A BASELOAD UNIT STARTS TO MAKE SENSE. BUT AGAIN, I THINK I MENTIONED THIS TO YOU BEFORE, CPS ENERGY, THEIR PEAK LOAD IS ABOUT 6000. THEIR TOTAL GENERATION IS NOW 8000. SO THEY ARE NOW LONG DISPATCHABLE GENERATION. AND SO WHAT THEY'RE DOING THAT ADDITIONAL 2000MW, THEY'RE MONETIZING THAT INTO THE MARKET THROUGH PPAS AND OTHER CONTRACTS AND IN CAPACITY. AGAIN I MENTIONED THAT WE REALLY NEED ABOUT 300MW. SO SOMETHING NO LESS THAN 100MW THAT MIGHT BE EXPANDABLE WOULD BE SOMETHING THAT IDEALLY WE WOULD WE WOULD KIND OF FOCUS ON. SO HERE'S A MAP OF THE REGION. SO EVERYTHING IN COLOR IS ERCOT OUT IN THE GRAY AREAS. YOU KNOW YOU HAVE THE SOUTHWEST POWER POOL. YOU HAVE WEC OUT HERE KIND OF DEEP DEEP WEST TEXAS. AND THEN MISO, THE MIDCONTINENT ISO KIND OF HERE ON THE EAST COAST. EXCUSE ME, NOT THE EAST COAST, EAST COAST OF MAYBE LOUISIANA, I GUESS. BUT ANYWAYS, ON THE EAST SIDE OF TEXAS, THIS BLUE AREA IS REALLY THE NORTH LOW ZONE. AND THAT'S KIND OF WHERE WE'RE LOCATED, ALTHOUGH THERE'S SOME OTHER KIND OF LITTLE SPOTS HERE RELATED TO LOWER COLORADO RIVER AUTHORITY AND WHAT HAVE YOU. BUT THIS IDEALLY WOULD BE SOMEWHERE IN THIS AREA THAT THEN KIND OF FOCUSES THE AVAILABLE EXISTING FACILITIES OR PROPOSED FACILITIES THAT MAY BE AVAILABLE. AND IT'S JUST A MAP OF KIND OF WHERE GENERATION'S BEEN SINCE 2021. AS YOU CAN SEE, NUCLEAR HAS STAYED RELATIVELY FLAT. TWO FACILITIES. YOU KNOW, THIS IS COAL. YOU CAN SEE COAL HAS CONTINUED TO DROP. AND THE STATE OF TEXAS NATURAL GAS BY FAR CONTINUES TO BE KIND OF THE LION'S SHARE OF GENERATION IN THE STATE. BUT EVEN IF YOU START LOOKING AT THE PEAKS HERE FOR GENERATION, YOU START SEEING WIND AND SOLAR ARE NOW STARTING 
          [02:50:01]
TO KIND OF OVERTAKE THAT. SO THAT NATURAL GAS IS STARTING TO COME DOWN WITH THE PREVALENCE OF, OF RENEWABLES IN THE STATE. AND THEN JUST KIND OF TO I DID PROVIDE TO YOU IN YOUR BACKUP, AND I KNOW IT'S A WONDERFUL RESOURCE WIKIPEDIA. BUT BUT THAT PROVIDES A KIND OF A LISTING OF, OF THESE GENERATION FACILITIES. THERE WAS REALLY NO, NO, NO CENTRAL PLACE THAT I COULD GO TO THAT COULD IDENTIFY THAT. RIGHT. AND SO AGAIN, THAT'S JUST FOR ILLUSTRATION PURPOSES. BUT IN THE STATE, ABOUT 4700MW OF NUCLEAR, STILL ABOUT 16,000MW OF COAL AND LIGNITE, THAT'S 12 FACILITIES THAT ARE STILL OPERATIONAL TODAY. SOME ARE ACTUALLY BEING PROPOSED TO OR PROPOSED TO BE DECOMMISSIONED. BUT CERTAINLY CHANGES IN THE EPA STANDARDS MIGHT CHANGE THAT. AND THEN 100MW, COMPRISING ABOUT 65,000, NOT INCLUDING WIND AND SOLAR RESOURCES HERE, BATTERIES OR ANYTHING LIKE THAT. BUT JUST TO GIVE YOU SOME CONTEXT OF WHERE THESE FACILITIES ARE, TEXAS ENERGY FUND I DID MENTION TO YOU PREVIOUSLY ON JUNE 3RD THAT VOTERS APPROVED THE TEXAS ENERGY FUND BACK IN NOVEMBER OF 23. THAT WAS $10 BILLION OF STATE FUNDING OVER, OVER OVER TWO BIENNIUM, 7.2 MILLION OF THAT WAS INTENDED TO INCENTIVIZE ADDITIONAL GENERATION, DISPATCHABLE GENERATION, TO BE CLEAR, AND NATURAL GAS DEVELOPMENT IN THE STATE OF TEXAS TO BRING ON ADDITIONAL 10,000MW OF GENERATION STATE THAT THE INTENT OF THAT REALLY WAS TO REPLACE FACILITIES THAT WERE GOING TO BE SHUT DOWN. RIGHT. SO IT WAS REALLY NOT GOING TO BE A NET NET GAIN OF GENERATION IN THE STATE. THESE ARE THE, THE INITIAL SUBMITTERS. 
          EVERYBODY THAT IS IN THAT HAS AN ASTERISK HAS NOW WITHDRAWN THEIR APPLICATION. TWO THINGS THAT THAT HAD TO HAD TO BE DONE BEFORE YOU COULD APPLY. ONE, YOU HAD TO HAVE A SITE IDENTIFIED AND, AND KIND OF IN YOUR CONTROL, HAVE SOME OPTIONALITY. AND THEN YOU HAVE TO HAVE A FACILITY THAT WAS DESIGNED. AND SO EVEN THESE FACILITIES THAT HAVE NOW DROPPED OFF FROM THIS FUNDING ARE LIKELY STILL SOMEWHERE IN THE PROCESS, ON THE SHELF SOMEWHERE, IF YOU WILL. 
          THAT COULD BE POTENTIAL CANDIDATES AS WELL FOR ACQUISITION. I WILL POINT OUT THAT RAYBURN COUNTY ELECTRIC IS THE ONLY CO-OP THAT SUBMITTED, AND I PREVIOUSLY MENTIONED THAT KERRVILLE PUB SUBMITTED AS WELL. IT'S THE ONLY OTHER, THE ONLY MOU IN THE STATE THAT SUBMITTED TO THE TEXAS ENERGY FUND. AND JUST AS AN UPDATE, THOSE THAT DROPPED OFF WERE REPLACED BY OTHER FACILITIES AS WELL. TWO FACILITIES HAVE NOW KIND OF MOVED ON TO ADDITIONAL REVIEW BY THE PUC AND ANTICIPATE APPROVAL HERE IN THE COMING MONTHS. LIKELY, KERRVILLE WILL ALSO BE ANOTHER ONE THAT THAT WILL BE APPROVED. THERE WAS A HOUSE BILL, THAT BILL AT THE SENATE THAT HAD TO BE APPROVED FOR SOME CLARITY ON ON HOW FUNDING WORKS, AND ALL HAS TO DO WITH BONDS. 
          BUT BUT AGAIN, THEY DO PLAN TO CONTINUE. SO THERE'S JUST SOME LIST OF THOSE THAT ARE ARE THERE TODAY. THEIR PROPOSED. ONE THING THAT I'LL POINT OUT THAT BY AND LARGE, THE LION'S SHARE OF THESE FACILITIES ARE PRIVATE EQUITY. THESE ARE ALL PRIVATE ENTITIES THAT HAVE SUBMITTED THAT THAT PLAN TO DO THESE, THESE GENERATION FACILITIES, IN THE EVENT THAT THAT ONE OF THOSE MIGHT BE OF INTEREST, MIGHT BE LOOKING TO DO A DEAL LIKELIHOOD BECAUSE THESE FACILITIES HAVE TO. DO DISCLOSURES TO THE MARKET, LIKELY THERE WILL BE CONFIDENTIALITY AGREEMENTS. SO I WANT TO BE CLEAR WITH THE COUNCIL THAT AT A POINT THAT WE ENGAGE SOME OF THESE, LIKELIHOOD THERE WILL BE A NON-DISCLOSURE AGREEMENT, CONFIDENTIALITY AGREEMENT, AGAIN, JUST BECAUSE OF THE KIND OF THE PUBLIC NATURE OF THESE CORPORATIONS. AND SO SOMETHING TO THINK ABOUT GOING FORWARD AS IF GIVEN APPROVAL. SO, SO THE OPTIONS THAT THAT WE'VE KIND OF PROPOSED HERE FOR YOU FOR CONSIDERATION AND DIRECTION IS OPTION ONE TO EXPLORE OPPORTUNITIES FOR FUTURE ACQUISITION OF APPROXIMATELY 300MW OF GENERATION. OPTION TWO WOULD BE TO DO THE SAME. BUT AGAIN, NOW WE'RE TALKING ABOUT 600MW OF GENERATION. AND THEN OPTION THREE WOULD BE TO DO NOTHING AND WAIT FOR THE COMPLETION OF THE INTEGRATED RESOURCE PLAN. JUST AS A REMINDER, COUNCIL GAVE US DIRECTION ON JUNE 3RD TO PURSUE A CITY ENERGY RENEWABLE ENERGY POLICY THAT WE DO PLAN TO BRING BACK TO YOU IN ABOUT 6 TO 9 MONTHS. AND THEN WE WOULD ANTICIPATE THAT THE INTEGRATED RESOURCE PLAN THAT WOULD ENCOMPASS NOT JUST THE MIX OF GENERATION NEEDS IN THE STATE, EXCUSE ME FOR DME, BUT ALSO LOOK AT THE VARIOUS DEMAND RESPONSE, DEMAND MANAGEMENT, WHETHER THEY'RE VIRTUAL POWER PLANTS, THAT THAT WE COULD LOOK AT 
          [02:55:01]
WITHIN THAT, WITHIN THAT PROGRAM. AGAIN, WE CERTAINLY BELIEVE THAT A MIXTURE OF ALL THESE THINGS ULTIMATELY WILL BE WILL BE NEEDED TO CONTINUE TO KEEP RATES RATES AFFORDABLE AND RELIABLE FOR CUSTOMERS. WE ANTICIPATE THAT THAT WOULD TAKE ABOUT 18 TO 24 MONTHS. SO WITH THAT, THAT THAT CONCLUDES MY PRESENTATION. HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE. 
          >> THANK YOU VERY MUCH. QUESTIONS AND DIRECTION FOR STAFF. IS THERE ANY QUESTIONS OR 
          DIRECTION? REPRESENTATIVE FROM DISTRICT SIX. >> THANK YOU, COUNCILPERSON JESTER, AND THANK YOU FOR THE PRESENTATION AND ALL THE INFORMATION. YOU MUST BE VERY THIRSTY AFTER ALL OF THOSE WORDS. FIRST OF ALL, YOU MENTIONED A TERM I WAS 
          UNFAMILIAR WITH NONATTAINMENT AREA. WHAT IS THAT? >> YEAH. SO THE DFW AREA IS CONSIDERED A NONATTAINMENT AREA. SO THERE'S BECAUSE OF THE HIGH GREENHOUSE GASES AND EMISSIONS, THERE'S FOR THE DEC IN PARTICULAR, YOU KNOW, THERE'S LIMITATIONS ON THE EMISSIONS THAT CAN BE PRODUCED BY THE DEC. I WILL TELL YOU, SINCE IT'S BEEN IN OPERATION, WE'VE NEVER 
          EXCEEDED ANY OF THOSE LIMITATIONS. >> OKAY. THANK YOU. AND THEN ONE AREA I'M NOT AS FAMILIAR WITH IS BATTERY STORAGE. WOULD YOU MIND TALKING A LITTLE BIT ABOUT WHAT IS THE UTILIZATION OR POSSIBLE UTILIZATION. HOW LONG WILL IT HOLD THE ENERGY. JUST, YOU KNOW, IN LOOKING AT USING THE RENEWABLE TYPE OF ENERGY, STORING IT AND THEN USING IT, HOW FISCALLY PRUDENT IS IT? IS IT AVAILABLE? WHAT ARE OTHER CITIES DOING? I MEAN, CAN YOU 
          JUST VISIT A LITTLE BIT ABOUT THAT, PLEASE? >> YEAH, I CAN TELL YOU THAT WE'RE CERTAINLY IN FAVOR OF BATTERY STORAGE. WE'VE BEEN LOOKING AT THAT FOR THE LAST SIX YEARS, I THINK, YOU KNOW, RECENTLY, YOU KNOW, THE ECONOMICS HAVE CHANGED SLIGHTLY THAT THAT THAT MIGHT MAKE IT ATTRACTIVE. YOU KNOW, MOST OF THE BATTERIES ACROSS ERCOT TODAY ARE TWO HOUR, YOU KNOW, THERE'S SOME FOUR HOUR DURATION BATTERIES. YOU HAVE SIX HOUR, SOME SIX HOUR DURATION BATTERIES. THERE CONTINUES TO BE ADVANCEMENTS IN TECHNOLOGY ON THOSE. YOU KNOW, WHAT'S IMPORTANT TO UNDERSTAND IS THAT ONCE A BATTERY DISCHARGES, IT TAKES SOME TIME FOR IT TO CHARGE AGAIN. AND SO IDEALLY YOU'RE LOOKING AT POTENTIALLY A TWO DISCHARGE TIME FRAME, YOU KNOW, FOR A TWO HOUR BATTERY. DEPENDING ON HOW THAT'S STRUCTURED, YOU MIGHT BE LOOKING AT A AT A ONE TIME TYPE OF DISCHARGE. MOST BATTERIES THAT ARE ON THE MARKET ARE ALSO PRIVATE EQUITY. AND SO CERTAINLY THERE'S RISK CAPITAL THAT'S GOING INTO SOME OF THOSE. AND I THINK I MENTIONED THIS, I'VE BEEN VERY CLEAR WITH YOU ABOUT KIND OF THE ARBITRAGE THAT THESE FACILITIES ARE MAKING AND SELLING ANCILLARY SERVICES. SO THEY THEY DON'T FULLY CHARGE. RIGHT. AND THEY'RE SELLING ANCILLARY SERVICES TO BE ON STANDBY AND MAKING A CALCULUS THAT THE AMOUNT THAT THEY'RE GOING TO GET PAID IF THEY DON'T FULLY CHARGE AND FULLY DISCHARGE THAT THE DIFFERENTIAL, STILL BE PROFITABLE, PROFITABLE TO THEM, AS YOU KNOW, AS A PUBLIC UTILITY, CERTAINLY DEALING WITH PUBLIC FUNDS. AND, YOU KNOW, WE ALWAYS ARE GUIDED BY THE PRUDENT INVESTOR RULE. AND SO CERTAINLY A DME WE CERTAINLY BELIEVE IN THAT. AND SO, YOU KNOW, PLAYING KIND OF THOSE ARBITRAGE GAMES, YOU KNOW, PUTS A LOT OF RISK ON OUR RATEPAYERS. THE OTHER THING THAT I WILL TELL YOU IS THAT BATTERY STORAGE TWO, OUR BATTERY FACILITY THAT YOU WOULD CONSTRUCT WOULD LIKELY BE EQUIVALENT IN COST TO A GENERATION FACILITY LIKE THE DEC AT 300MW. RIGHT? SO NOW YOU'RE PAYING $300 MILLION FOR A FACILITY ROUGHLY. THAT IS ONLY GOING TO LAST YOU ABOUT TEN YEARS. THAT'S THE GENERAL LIFE OF, OF A OF A BATTERY STORAGE, UNLESS YOU KIND OF, YOU KNOW, DON'T DON'T GO BELOW. DON'T GO BELOW A CERTAIN PERCENTAGE, 10% DON'T GO ABOVE 80%. YOU'RE KIND OF MANAGING THAT RIGHT TO EXTEND THE LIFE OF THAT BATTERY. BUT ABOUT TEN YEARS IS THE LIFE CYCLE ON A BATTERY STORAGE. THE DEC HAS A LIFE A LIFE EXPECTANCY OF 30 TO 50 YEARS. RIGHT. AND SO NOW YOU'RE TALKING ABOUT A BATTERY FACILITY YOU WOULD NEED LIKELY YOU KNOW, THREE OF THOSE RIGHT. AS AS YOU RETIRE ONE AND YOU BRING ANOTHER ONE ON. SO NOW YOU'RE NOT TALKING ABOUT $300 MILLION, YOU'RE TALKING ABOUT 
          $900 MILLION FOR THE SAME CAPACITY. >> THANK YOU. 
          >> ANY OTHER QUESTIONS? BEFORE I MOVE ON? DO YOU HAVE DIRECTION, COUNCILMEMBER JESTER? 
          >> NO, I'M GOING TO RESERVE WHILE WE DISCUSS THINGS. >> ALL RIGHT. ANY OTHER REPRESENTATIVE FROM DISTRICT FOUR? OKAY. OH, AND THEN ONE. 
          >> THANK YOU. THAT WAS THAT WAS AN EXTENSIVE PRESENTATION. THANK YOU. I'M GOING TO EMBARRASS MYSELF. I NEVER HEAR THE WORD HYDROELECTRIC. IS THAT A BUGGY WHIP TYPE THING? I MEAN, IS THAT 
          JUST NOT HAPPENING ANYMORE? >> I MEAN, DENTON HAD TWO HYDRO PLANTS, ONE AT RAY ROBERTS AND 
          ONE AT LAKE LEWISVILLE. >> WELL, THAT'S WHAT I WAS THINKING. 
          >> YEAH, IT WAS A PRETTY SMALL. IT WAS LIKE ONE MEGAWATT. THE RAY ROBERTS FACILITY WAS DECOMMISSIONED. THE LAKE LEWISVILLE FACILITY IS ACTUALLY OWNED BY THE CITY OF GARLAND. 
          WHEN THE PLANT WAS SOLD, THAT FACILITY WAS ALSO SOLD. AND SO AGAIN, IT'S ONE MEGAWATT, YOU 
          [03:00:02]
KNOW, AGAIN, YOU'RE TALKING ABOUT ONE MEGAWATT OF HYDRO POWER. WHEN WE HAVE A PEAK LOAD OF 400MW, RIGHT, A DEFICIT OF 600, IT JUST IT'S NOT GOING TO MAKE A WHOLE LOT OF DIFFERENCE. 
          BUT IT COULD BE PART OF THAT MIX. >> THE MAYOR WOULD SAY THAT THE JUICE IS NOT WORTH THE SQUEEZE IS THE TERM HE USED. OKAY. SO TELL ME THE TELL ME THE COST DIFFERENCE. AND I'M NOT TALKING ABOUT DOLLARS BUT BUT NUMBERS OF TIMES A 300 MEGAWATT FACILITY IS A 600 MEGAWATT FACILITY TWICE THE COST. OR IS THERE SOME ECONOMY OF SCALE THERE. 
          >> YEAH, WE CERTAINLY BELIEVE THAT THERE WILL BE SOME ECONOMIES OF SCALE OF SCALE, PROVIDED THAT THEY'RE CO-LOCATED. RIGHT. AND SO IF THEY'RE IF IT'S IF IT'S ON ONE ON ONE PROPERTY, THAT COULD BE ECONOMIES OF SCALE. IF NOW YOU'RE TALKING ABOUT TWO SEPARATE LOCATIONS, THEN YOU'RE KIND OF DUPLICATING A LOT OF THE SAME THING, RIGHT? ESPECIALLY ON THE FIXED SIDE WITH PERSONNEL, YOU GOT PRETTY MUCH THE SAME NUMBER OF PEOPLE THAT CAN RUN A 600 VERSUS A 300. SO AGAIN, ECONOMIES OF SCALE, IF THEY'RE TOGETHER, YOU'RE LIKELY NOT 
          GOING TO BE 300 TIMES TWO. >> AND IF YOU BOUGHT A GOOD LOW MILEAGE COAL PLANT AND CONVERTED IT TO GAS, HOW LONG DOES THAT CONVERSION I MEAN, IS THAT A LONG TIME OR. YEAH. 
          >> I THINK I THINK THAT THAT WOULD BE THAT WOULD BE A LONG TIME. I WILL TELL YOU, IN THE CASE OF SAN ANTONIO, THEY BOUGHT TWO PLANTS. THOSE PLANTS WERE WHAT'S CALLED RUCKED. RIGHT. SO, SO BASICALLY ERCOT SAID YOU CANNOT SHUT THEM DOWN. THEY'RE NEEDED. YOU'RE GOING TO KEEP RUNNING THEM, RIGHT UNTIL WE TELL YOU THAT YOU CAN'T. AND SO, SO THAT COULD BE A POTENTIAL RIGHT THAT YOU MAY HAVE AA5 OR TEN YEAR PLAN POTENTIALLY RIGHT TO, TO DECOMMISSION THOSE AND CONVERT THEM. AND ERCOT MAY STEP IN AND TELL YOU NO. RIGHT. SO THAT'S THAT POSSIBILITY. AGAIN LOTS OF KIND OF MOVING PIECES THERE. COUNCILMEMBER. CERTAINLY WORKING OUT, YOU KNOW, THE ENVIRONMENTAL REMEDIATION, WHO'S ULTIMATELY RESPONSIBLE FOR THAT? I WILL TELL YOU FOR GIBBONS CREEK, THAT FACILITY WAS WAS SOLD AND WAS DECOMMISSIONED AND WAS COMPLETELY TORN DOWN. THE REMEDIATION EFFORTS FOR THE ASH PONDS AND FOR THE MINE AND FOR THE LANDFILLS, THAT'S A 30 YEAR COMMITMENT. AND SO IT'S GOING TO BE A LONG TIME. AND WHEN I TALK ABOUT KIND OF THE COST PROPOSITION ON A ON TAKING A COAL. NOW IF, IF THE ENVIRONMENTAL REMEDIATION CAN BE RETAINED BY THE PREVIOUS OWNER OR THAT CAN BE, YOU KNOW, CORDONED OFF TO SOMEONE ELSE, YOU KNOW, POTENTIALLY AGAIN, THOSE ARE ALL KIND OF THINGS THAT WE WOULD BE LOOKING AT. AND CERTAINLY GIBBONS CREEK IS A GOOD EXAMPLE OF, OF A SALE THAT WAS DONE THAT, THAT WE WOULD 
          LIKELY LOOK AS, AS AN EXAMPLE TO MIRROR HAVE. >> HAVE YOU GOT A SITE IN MIND, 
          I MEAN THAT YOU KIND OF LIKE. >> NO, I CAN'T, I CAN'T SAY THAT. I THINK OUTSIDE OF THE FACT THAT I THINK THE NORTH LOAD ZONE, AND CERTAINLY THERE'S A NUMBER OF POWER PLANTS KIND OF IN THAT AREA THAT COULD POTENTIALLY BE BE CANDIDATES. BUT AGAIN, UNTIL WE START ENGAGING PEOPLE, WE JUST DON'T KNOW WHAT THE VIABILITY OF THAT MIGHT BE. 
          >> OKAY, MAYOR, AS FAR AS DIRECTION, I TEND TOWARD THE 600 MEGAWATT FACILITY. 
          >> OKAY. THANK YOU. REPRESENTATIVE. DISTRICT ONE. >> BELIEVE IT OR NOT, I UNDERSTOOD ALL OF THAT. I HAVE BEEN BEEN STUDYING IT AND I DO NOT WANT US TO MISS ANY KIND OF OPPORTUNITY, YOU KNOW, THAT'S OUT THERE FOR US. SO I WOULD DEFINITELY WOULD WANT TO APPROVE US MOVING FORWARD TO AT LEAST INVESTIGATE MORE IN DETAIL. AND YOU ALL BRINGING US BACK, YOU KNOW, SOME SOLID RECOMMENDATIONS FOR THAT BETWEEN 600 AND 300. YOU KNOW, IT'S NEITHER HERE NOR THERE. IT'S STILL NEEDS TO BE INVESTIGATED, YOU KNOW, AND YOU AND YOU'LL GIVE US THOSE NUMBERS 
          LATER. SO THAT'S WHAT I'LL DO THAT. THANK YOU. >> ANYONE ELSE? REPRESENTATIVE 
          DISTRICT TWO. >> SO ONE OF THE THINGS YOU LED WITH IS, IS SORT OF THE, THE ISSUE OF, OF LOAD VERSUS HEDGE. AND YOU CAN DO BOTH. I MEAN, THAT'S WHAT WE'RE DOING NOW. BUT WHY ARE WE NOT PURSUING OUR LOAD DEMANDS FROM LOAD CONTRACTS THE WAY YOU HAVE BEEN DOING SINCE 2018? AND WHY ARE WE NOT PURSUING, YOU KNOW, SEPARATELY? YOU KNOW, YOU CAN USE ORANGE JUICE HEDGES OR ANYTHING ELSE TO HEDGE YOUR, YOUR, YOUR SPOT MARKET PRICING. YEAH, I UNDERSTAND THAT THE INFRASTRUCTURE HEDGE IS NICE BECAUSE IT IT'S EBBS AND FLOWS GO WITH THE MARKET. BUT WHY ARE WE WHY ARE WE COUPLING SO HARD? THE CONCEPT OF HEDGING AND LOAD 
          GENERATION. >> SO WHAT I WOULD SAY IS, IS THIS FIRST OF ALL WE'RE LIMITED 
          [03:05:02]
TO NATURAL GAS AND ELECTRICITY FOR COMMODITY PURCHASES. RIGHT. I COULDN'T DO ORANGE JUICE BUT SO WE DO HAVE A RISK POLICY THAT OUTLINES THAT. WHAT I'LL TELL YOU IS THAT, YOU KNOW, JOSE GAITAN WHO'S SITTING RIGHT THERE, WHO, YOU KNOW, AND THE STAFF THAT WE HAVE. SURE. AND THE STAFF THAT WE HAVE IN THE AEMO, I THINK CERTAINLY DO A YEOMAN'S JOB. THANK YOU. A YEOMAN'S JOB OF, OF LOOKING AT THE MARKET, MAKING SURE THAT THEY'RE IN TUNE WITH THE MARKET AND THAT THEY'RE GOING OUT THERE AND THEY'RE ANTICIPATING WHERE THINGS ARE GOING TO BE. BUT YOU KNOW WHAT? IN HEDGING, WHICH IS REALLY WHAT WE'RE DOING HERE. COUNCIL MEMBER WE DON'T HAVE A CRYSTAL BALL. WE'RE GOING TO MISS SOME AND WE'RE GOING TO WE'RE GOING TO GET SOME. RIGHT. 
          AND I'LL TELL YOU, IN THE LAST SIX YEARS WE'VE MISSED SOME AND WE'VE GOTTEN SOME RIGHT. FINDING AN INSTRUMENT THAT FITS RIGHT WHEN YOU NEED IT, YOU KNOW, TWO MONTHS OUT, EVEN IN SOME CASES THREE YEARS OUT. RIGHT, IS ALMOST AN IMPOSSIBILITY. RIGHT. AND SO THE DECK IS A IS A IS A HEDGE THAT WE PUSH A BUTTON AND WITHIN FIVE MINUTES IT'S PRODUCING POWER. RIGHT. AND SO AS AS OUR AEMO STAFF IS TRACKING PRICES AND THEY SEE PRICES GO ABOVE 35, THEY DISPATCH THAT FACILITY. AND THERE IS NO INSTRUMENT, NO HEDGE, NO FINANCIAL TRANSACTION, NO PHYSICAL ENERGY THAT THAT WILL BE AVAILABLE AT THAT MINUTE, AT THAT MOMENT. RIGHT. THAT WOULD 
          BE ADVANTAGEOUS FOR US. AND THAT'S THE DIFFERENCE. >> OKAY. BUT BUT THE BUT THE FINANCES AREN'T AREN'T I MEAN, I KNOW WE COLLECT THEM MINUTE BY MINUTE. I UNDERSTAND THAT THAT'S HOW THE GENERATION IS DONE, BUT THAT'S ONLY BECAUSE THAT'S THE WAY WE DO IT. WE DON'T HAVE TO DO IT THAT WAY TO MAKE YOUR BOOKS BALANCE. I MEAN, YOU CAN, YOU CAN, YOU CAN SEPARATE YOUR 
          LOAD REQUIREMENTS FROM, FROM THE 225 FROM THE DECK. >> YEAH, ABSOLUTELY. I CAN GO OUT THERE POTENTIALLY TODAY AND HEDGE PHYSICAL POWER FOR OUT TO 2 OR 3 YEARS. AND THAT'S PRICED AT THE FORWARD MARKET OF POWER. RIGHT. THAT THAT FORWARD MARKET POWER TWO MONTHS AGO WAS $70 A MEGAWATT HOUR. RIGHT. AND SO WE MADE WE MADE THE CALCULUS THAT WE WERE JUST NOT GOING TO BUY $70, A MEGAWATT, MEGAWATT POWER. AND SO THEN WHAT ENDED UP HAPPENING? PRICES MODERATED BECAUSE ALL OF A SUDDEN THE TEMPERATURE WAS COOLER. RIGHT. AND SO THOSE FORWARD PRICES NEVER MATERIALIZED. HAD I HAVE LOCKED THEM IN. RIGHT. EITHER I WOULD HAVE HAD TO HAVE KEPT IT AT $70, OR I WOULD HAVE HAD TO DUMP THAT BACK INTO THE MARKET AT A, AT A LOSS. RIGHT. AND SO, SO THAT'S, THAT'S THE THAT'S THE CHALLENGE THAT WE HAVE IS TRYING TO DETERMINE, YOU KNOW, WHAT PERCENTAGE OF OUR TOTAL LOAD ARE WE GOING TO GO OUT THERE AND SECURE. AND HOW MUCH OF THAT ARE WE GOING TO LEAVE OPEN. AND THAT'S WHAT THE DECK ALLOWS US TO DO, LIKE ALLOWS US TO, TO KIND OF TO KIND OF HEDGE OURSELVES RIGHT IN THOSE, IN THOSE LOW PRICE HOURS. RIGHT. 
          THE DECK DOESN'T RUN, BUT IT'S THERE TO PROTECT US. IF ALL OF A SUDDEN THOSE PRICES JUMP UP TO 
          $5,000. >> AND SO WHY IS THAT NOT TRUE OF A BATTERY STORAGE FACILITY THAT WE'VE COLORED WITH EITHER OUR DATA OR, OR SOME OTHER GENERATIVE SOURCES? 
          >> IT'S PURELY THE COST. YOU KNOW, THE DECK DISPATCHES AT $35, THE BATTERY IS LIKELY GOING TO BE NORTH OF THAT, YOU KNOW, AND I KNOW WE'VE HAD SOME CONVERSATIONS, BUT WHAT I'LL TELL YOU WITHOUT, YOU KNOW, OVERLY DISCLOSING HERE ON THE RFP, WE'RE LOOKING AT WE'RE LOOKING AT A PREMIUM COST, EVEN ON THAT FACILITY, YOU KNOW, THAT THAT WE MAY NOT NEED TO, THAT WE MAY NOT BE ABLE TO RECOVER. THAT'S GOING TO BE PURE COST THAT WE'RE GOING TO HAVE TO PASS 
          ON TO OUR CUSTOMERS. >> THE THAT'S THAT'S FOR THE ONE THAT WE'VE DISCUSSED BEFORE, CORRECT? CORRECT. THE PREVIOUS THE ONE IN THE METROPLEX REGION. YES. OKAY. THE BUT AT THE SAME TIME THAT THAT WAS FOR THE. WELL, I DON'T WANT TO GET INTO THE DETAILS OF THAT ONE PER SE, BUT THAT HAD PARTICULAR CHARACTERISTICS THAT WERE MADE IT CHEAPER BUT VERY MARKET LIMITED AND USEFUL FOR US IN TERMS OF HOW WE CAN MAKE USE OF IT VERSUS OUR OWN INFRASTRUCTURE, WHICH IS ESSENTIALLY WHAT WE'RE TALKING ABOUT WITH GETTING 300MW OF ANYTHING NUCLEAR, GAS, WHATEVER IS IF WE'RE THE PRIMARY, ONE OF THE PRIMARIES ON THAT, THEN THEN WE DETERMINE THE USAGE OF, OF THAT STRUCTURE FOR, FOR WHATEVER THAT GENERATIVE SOURCE IS. SO, SO THOSE LIMITATIONS THAT YOU'RE SAYING IMPACT YOUR FINANCES DON'T REALLY PLAY THE SAME WAY. 
          IF IT'S IF IT'S OUR INFRASTRUCTURE. >> WELL, SO, SO, SO A BATTERY FACILITY, $300 MILLION A TWO HOUR DURATION, RIGHT. WHEN, WHEN MY SCARCITY PERIOD IS 4 TO 5 HOURS, IT'S ONLY GOING TO COVER ME FOR TWO HOURS, RIGHT? A $300 MILLION DISPATCHABLE GENERATION FACILITY COVERS ME THE ENTIRE FIVE HOURS. AND THAT'S THE. AND THAT'S THE DIFFERENCE. 
          [03:10:01]
          >> BUT YOU ARE SO AT ONE AND THE SAME TIME, YOU TALK ABOUT THE INFRASTRUCTURE COSTS AND, AND THE DURABILITY AND HOW LONG THEY LAST. IF I GET INTO ONE TYPE OF UNIT VERSUS THE OTHER, THE BUT THAT'S, THAT'S ACTUALLY IT'S, IT'S BOTH ITS STRENGTH AND ITS WEAKNESS IS YOU'RE TIED TO THAT TECHNOLOGY FOR THE 50 YEARS OF THAT TECHNOLOGY. AND SO AS THINGS PROGRESS. SO FOR INSTANCE, THE EASY EXAMPLE ON THAT ONE IS ION BATTERIES, SODIUM BATTERIES. THOSE THINGS ARE ACTUALLY DROPPING IN PRICE MORE THAN 10% A YEAR. CORRECT. RIGHT. SO YOU CAN GET INTO THAT TECHNOLOGY AND YOU KNOW, THE ONLY RISK THERE WOULD BE OKAY. WELL YOU KNOW BETTER BATTERIES NEXT YEAR A LITTLE BIT. BUT THAT ALLOWS YOU TO STAY UP WITH THE MORE COST EFFECTIVE PER ELECTRON TECHNOLOGY AS YOU GO FORWARD AS OPPOSED TO OVER THE LIFETIME OF THE PROJECT, ADMITTEDLY, VERSUS BEING TIED TO IT FOREVER SO THAT YOU'RE YOU'RE JUST LIMPING ALONG ON A, ON A PROJECT THE WAY WE DIDN'T WANT TO LIMP ALONG ON SPENCER. ONE OF THE REASONS WE SHED IT WAS IT'S OLD CRUDDY 
          TECHNOLOGY. >> AND THAT'S EXACTLY WHY WE'RE LOOKING AT A POWER PURCHASE AGREEMENT THAT WE THINK, YOU KNOW, I THINK MARGINALLY MAKES SENSE FOR US. IT'S GOING TO BE THERE. WE DON'T OWN IT, ALTHOUGH WE ARE GOING TO BE TIED TO IT FOR A PERIOD OF TIME. BUT BUT CERTAINLY FROM A FROM A COST STANDPOINT, I'M NOT BRINGING ON SOMETHING THAT $300 MILLION THAT THAT NOW, YOU KNOW, MAY, MAY PHASE OUT WITHIN TEN YEARS. RIGHT. AND SO I HAVE A POWER PURCHASE AGREEMENT THAT IS A SHORT TERM IDEALLY THAT THAT WE'LL BE ABLE TO GET OUT AND WE'LL SEE WHERE THE TECHNOLOGY GOES. I MEAN, CERTAINLY, YOU KNOW, WE THINK THAT BATTERY 
          STORAGE NEEDS TO BE PART OF THAT OVERALL GENERATION MIX. >> SO AND IF I MAY, WE HAVE ANOTHER ITEM OKAY. AND WE HAVE FOOD HERE. AND I I'M ENJOYING Y'ALL'S CONVERSATION. BUT I'D 
          RATHER GET TO QUESTIONS AND ANSWERS. >> OKAY. A COUPLE QUICK THINGS AND THEN I'LL BE DONE. OF THOSE LNG PLANTS THERE THERE WERE 108 PROPOSED, 72 APPLIED FOR FUNDING. ONLY 17 GOT APPROVED. AND YOU KNOCKED OFF SIX. MORE RECENTLY. PART OF THOSE WERE FOR WHAT YOU TALKED WITH WITH. COUNCIL JESTER THAT THEY'RE IN DETAINMENT ZONES. THERE'S UP TO 26% OF THOSE PROPOSED PLANTS ARE IN PLACES WHERE YOU CAN'T RUN THEM AT A PROFIT POINT BECAUSE THE AIR QUALITY, EVEN AT THE CALIFORNIA STANDARDS OF MODERN PLANTS, CAN'T BE PUT OUT INTO THE ATMOSPHERE. SO YOU WON'T BE ABLE TO MAKE YOUR MONEY BACK IF YOU'RE GETTING IN WITH THOSE. 
          AND SO WE'RE GOING WE'RE PROPOSING HUNDREDS TO, TO MEET OUR NEEDS. AND WE'RE DOWN TO 11. 
          >> YEAH. I MEAN, AGAIN, I THINK UNTIL WE LOOK AT THAT POOL AND WE HAVEN'T DONE THAT, WE DON'T KNOW. AND YOU MAY VERY WELL BE RIGHT. I MEAN, AT THE END OF THE DAY, I ONLY NEED ONE. 
          >> SO THEN WHY ARE WE GETTING AHEAD OF OUR IRP WHERE WE'RE LOOKING AT THE BALANCE, WE'RE LOOKING AT THE BATTERIES AND WE'RE LOOKING AT THE MIX. IT'S 18 TO 24 MONTHS WITH 48 TO 60 MONTH HORIZONS ON GAS TURBINES. WHY ARE WHY ARE YOU AHEAD NOW? WHY IS IT CRITICAL NOW VERSUS 
          YOU DON'T EVEN KNOW WHAT THE IRP IS GOING TO COME BACK AND SAY. >> YEAH, I DON'T KNOW. YOU KNOW, CERTAINLY THAT'S A PROCESS THAT WE HAVE TO GO THROUGH. I JUST, YOU KNOW, BASED ON WHAT WE'VE SEEN, RELYING 100% ON INTERMITTENT RESOURCES IS JUST NOT VIABLE. WHEN THOSE SAME RESOURCES THAT WE LOCKED IN TEN YEARS AGO AT 20, $40, NOW WE'RE SEEING PRICES AT $60, RIGHT. AND IF WITH THE FIRMING, YOU'RE LIKELY GOING TO ADD ANOTHER 7 TO $10 ON TOP OF THAT. 
          >> THAT FIRMING DIDN'T PASS. >> NO IT DID PASS. IT PASSED IN IN THE 88TH LEGISLATURE. AND SO FOR ALL NEW RENEWABLE RESOURCES AFTER JANUARY 1ST OF 2027, THEY HAVE TO BE FIRMED. AND SO THE PRICES WE'RE SEEING IS THAT YOU'RE GOING TO ADD AN ADDITIONAL 7 TO $10 ON TOP OF 
          THAT $60. >> SO LAST COMMENT, THEN I'LL GIVE DIRECTION. ADDING ANOTHER DECK DECK TWO TO THIS TO THIS IDEA IS ALREADY SORT OF SORT OF HIDING THE FACT THAT THE GENERATION CAPACITY OF THE 225MW THAT WE ALREADY OWN ISN'T REALLY INCLUDED IN IN RECS AND OTHER CARBON CAPTURE AND OTHER THINGS THAT WE USE TO OFFSET OUR, OUR CLIMATE GOALS. IT'S NOT WE'RE NOT GOING TO BE ABLE TO ATTAIN OUR 2050 GOALS AS IS WITH OUR CURRENT CONFIGURATION, LET ALONE DOUBLING IT. AND SO WE ARE GOING TO DOUBLE DOWN ON SOMETHING THAT IS AGAINST OUR RESOLUTION AND ORDINANCE POLICIES. SO I'LL LET YOU COMMENT, BUT THEN THEN I'LL SAY MY DIRECTION. 
          [03:15:01]
          >> YEAH. WHAT I WOULD TELL YOU, AND I KNOW THAT THE CLIMATE ACTION PLAN WILL BE COMING. 
          >> TO. >> YOU. AND I KNOW MICHAEL AND HIS STAFF ARE LOOKING AT DOING ANOTHER GREENHOUSE GAS INVENTORY SOMETIME THIS SUMMER, BASED ON THE CONVERSATION THAT WE HAD BASED ON THE BASED ON THE LAST INVENTORY IN 2019, THE DECK MADE UP 10%, ABOUT 10% OF THE TOTAL GREENHOUSE GASES IN THE CITY OF DENTON, 10%. SO THERE'S OTHER THINGS IN THE CITY, DENTON, THAT ACTUALLY CONTRIBUTE FAR MORE TO GREENHOUSE GAS EMISSIONS, INCLUDING TRANSPORTATION, YOU KNOW, AND THERE'S OTHERS. RIGHT. AGAIN. AND I JUST KNOW ENOUGH THERE COUNCIL MEMBER TO PROBABLY BE DANGEROUS. BUT I'M SURE MICHAEL COULD GIVE YOU ADDITIONAL CONTEXT TO WHAT THAT OVERALL PERCENTAGE. BUT IT'S 10%. IT'S EQUIVALENT TO THE GREENHOUSE GAS EMISSIONS AT THE CITY'S LANDFILL. SO THAT'S WHAT THE DECK REPRESENTS 10% OF THE OVERALL GREENHOUSE GAS 
          EMISSIONS. >> I APPRECIATE THAT, GIVEN THE FACT THAT, LIKE, OUR BATTERIES HAVE GROWN TO 13GW IN THE STATE, THAT WE'VE GONE FROM, 270MW, SORRY, SOLAR, UP TO 13GW, WE'VE GONE FROM 275MW OF BATTERY, UP TO 11GW OF BATTERY IN THE STATE. LOOKING AT THOSE TRENDS, LOOKING AT THE FACT THAT WE'RE AHEAD OF THE IRP, LOOKING AT WHAT WE DON'T KNOW WHAT OUR PORTFOLIO IS GOING TO BE AT OR WHAT OUR NEEDS. KNOWING THAT ION AND SIMILAR BATTERY TECHNOLOGIES ARE BEING PUT INTO PLACE RIGHT NOW, AS WELL AS LIKE THE MOLTEN SALT NUCLEAR IN COLLEGE STATION THAT YOU AND I LOVE. WE GIGGLE ABOUT THIS ONE VERY BULLISH ABOUT THAT. AND SO THERE'S MY OPTION IS IF I COULD GET LESS THAN OPTION THREE THEN I WOULD. WE ARE SO CART BEFORE THE HORSE ON THIS ONE. AND NONE OF THIS INCLUDES THE ENGAGEMENT OF THE COMMUNITY. SO I'M FOR EXTREME 
          OPTION THREE. >> THANK YOU. ALL RIGHT. NEXT. ANYONE ELSE DIRECTION 
          REPRESENTATIVE NIXON FIVE. >> I WILL BE SUCCINCT. I REALIZE WE'RE OUT OF TIME. A COUPLE THINGS I FOUND INTERESTING. WE HAD HYDRO AT RAY ROBERTS. IT WAS DECOMMISSIONED. YES, SIR. WHEN AND WHY. THAT WAS DECOMMISSIONED PROBABLY A DECADE AGO. IF NOT. IF NOT LONGER. THE FLOWS FROM RAY ROBERTS WERE JUST NOT SUFFICIENT TO KEEP THAT FACILITY GOING. AND SO THE FLOWS WERE 
          BETTER AT LAKE LEWISVILLE. >> OKAY. THANK YOU. I DIDN'T KNOW THAT, SIR. BASED ON THE PRESENTATION WITH THE HEAT IN THE SUMMER OF 23 AND YURI, WE'RE PAYING 15 MILLION EVERY YEAR IN CREDIT CARD BILLS, BASICALLY, RIGHT? YES, SIR. EIGHT, SEVEN AND EIGHT. YES, SIR. I KNEW ABOUT HAVING TO PAY BACK YURI. I GUESS I WAS UNCLEAR ON HAVING TO PAY BACK WHAT WE PURCHASED 
          DURING THE HEAT WAVE OF THE SUMMER OF 23. >> YES, SIR. $31 MILLION. 
          >> OKAY, I APPRECIATE THAT. I'M. I'M SURE YOU SAID IT. I FORGOT I KNEW ABOUT YURI, BUT I DIDN'T KNOW ABOUT THAT. OKAY, I'LL. I'LL CUT OUT MOST OF MY QUESTIONS. I CAN COUNT VOTES. I UNDERSTAND WHICH WAY WE'RE GOING. HAVING SAID THAT, WHAT YOU JUST SAID ABOUT ANOTHER GREENHOUSE STUDY COMING FROM GUANGYI AND HIS TEAM. IF THE DECK ACCOUNTS FOR 10% CURRENTLY, GIVEN THAT WE ARE WORKING TO REDUCE THINGS LIKE TRANSPORTATION EMISSIONS. WHAT'S THE SECOND DECK GOING TO DO? ANOTHER 10% OR LESS? I'M ASKING YOU TO GUESS, OBVIOUSLY. 
          >> YEAH, IT'LL IT'LL BE IT'LL BE LESS, JUST LIKE, YOU KNOW, THE SPENCER STATION THAT WE, THAT WE DON'T OWN. SO IDEALLY, IF IT WAS 10% IN 20 IN 2019, THERE'S LIKELY BEEN A GROWTH IN GREENHOUSE GASES. THE DECK HAS NOT GROWN ANY MORE THAN WHAT IT IS TODAY. IT WILL LIKELY THE DECK ALONE WILL LIKELY BE LESS THAN 10% OF THE OVERALL GREENHOUSE GAS EMISSIONS IN IN 
          THE CITY. >> WITH THE SECOND DECK. >> THE DECK BY ITSELF, IF THERE'S A SECOND DECK, IT WON'T BE. IT WON'T GO TO 20%. IT'LL BE SOME OTHER NUMBER. 
          >> OKAY. BASED ON YOUR LINE OF QUESTIONING, COUNCIL MEMBER HOLLAND, IF ERCOT DEEMS THAT ESSENTIAL AND WE COULD POTENTIALLY HAVE TO CONTINUE RUNNING IT, RIGHT? 
          >> YEAH, YOU COULD BE RUN AT ANY TIME, BUT THE DECK'S NEVER BEEN ROCKED. 
          >> I GUESS MY CONCERN IS THAT AS ENERGY NEEDS CONTINUE TO GO UP ALL OVER THE STATE, DO YOU THINK THAT THIS IS A POSSIBILITY HERE IN DENTON? I UNDERSTAND IT HASN'T HAPPENED BEFORE, BUT WE HAVE UNPRECEDENTED PRESSURE COMING WITH US, WITH POPULATION GROWTH AS WELL AS DATA CENTERS. 
          >> YEAH. YEAH, VERY, VERY DOUBTFUL THAT IT WOULD BE ROCKED. WE WOULD WE WOULD CONTINUE TO OPERATE UNLESS COUNCIL GAVE US A DIFFERENT DIRECTION. 
          >> OKAY. SO A SECOND DECK ESSENTIALLY IS GOING TO BE HOOKED UP TO THE OVERALL GRID 
          RIGHT. >> YES, SIR. IT HAS TO BE. >> IT HAS TO BE. 
          >> AND I JUST WANT TO BE CAREFUL. I MEAN, YOU PEOPLE KEEP SAYING A SECOND DECK. IT MAY NOT NECESSARILY BE A SECOND DECK. I MEAN, IT COULD BE SOME OTHER TYPE OF TECHNOLOGY AND DIFFERENT 
          EMISSION PROFILE. AND SO, YOU KNOW, IT WON'T BE A DECK 2.0. >> AM I INCORRECT IN ASSUMING 
          [03:20:05]
          THAT A SECOND DECK WOULD BE THE MOST COST EFFICIENT WAY TO GO? >> A QUICK START PEAKER. YES, 
          THAT'S WHAT EVERYBODY ELSE IS BUILDING. >> HOW MUCH OF THE PERCENTAGE OF ENERGY, HOW MUCH OF THAT ENERGY IS GOING INTO THE OVERALL GRID, AND HOW MUCH IS SPECIFICALLY FOR 
          DENTON FOLKS? IS THERE A WAY TO EVEN CALCULATE THAT? >> I MEAN, LISTEN, I DON'T HAVE A DEGREE IN PHYSICS, BUT I'M I WOULD IMAGINE, RIGHT? JUST LIKE WATER, IT GOES TO THE PATH OF LEAST RESISTANCE. RIGHT. AND SO ANYTHING THAT'S THAT'S HERE IS LIKELY GOING TO DO THAT. BUT BUT WE'VE BEEN VERY CLEAR AND WE'VE GONE BACK AND LOOKED AND I THINK EVERYBODY WAS CLEAR THAT THAT FACILITY WILL NOT PROVIDE POWER DIRECTLY TO CITIZENS OF DENTON. NOW, YOU KNOW, COULD WE OPEN UP BREAKERS AND USE IT AS A GENERATOR? WE COULD. BUT I THINK AS A MARKET PARTICIPANT, WE'D LIKELY BE LOOKING AT AT A HUGE FINES THAT FACILITY, JUST LIKE OUR RENEWABLE FACILITIES, JUST LIKE ANY OTHER FACILITY IN OUR COURT, PUTS PUTS ALL THAT POWER INTO THE SAME GRID, YOU KNOW, SO 
          YOU PUT POWER INTO THE GRID AND YOU BUY POWER FROM THE GRID. >> IS THERE A WAY WE CAN DO A STUDY AND QUICKER THAN 24 MONTHS, I'M ALMOST DONE. IS THERE A WAY WE CAN DO A STUDY 
          AND QUICKER THAN 24 MONTHS. >> ON THE IRP? >> YEAH. 
          >> UNLIKELY. COUNCIL MEMBER. >> BEFORE WE MAKE THIS DECISION, SIR, IS THERE ANY WAY TO GET SOME COMMUNITY ENGAGEMENT ON THIS ISSUE? I REMEMBER WHAT HAPPENED LESS THAN TEN YEARS 
          AGO. >> WELL, I MEAN, THAT'S COUNCILS DIRECTION. IF A MAJORITY OF THE COUNCIL WANTS WANTS TO GO THAT DIRECTION, IT'S THE COUNCIL'S DIRECTION. 
          >> WOULD THERE BE A PLAN TO DO THIS WITHOUT SPENDING A BUNCH OF MONEY ON IT? I RECOGNIZE WE 
          JUST. >> DON'T KNOW. OH ABSOLUTELY NOT. I MEAN, ANYTIME YOU HAVE TO GO OUT AND DO PUBLIC ENGAGEMENT, YOU HAVE TO SPEND A LITTLE MONEY ON IT. BUT IT'S NOT EXTENSIVE. 
          AND CERTAINLY THAT'S THE DIRECTION OF COUNCIL, I THINK. I THINK THERE'S A COUPLE OTHER 
          PEOPLE THAT NEED TO SPEAK AND SEE WHERE IT LANDS. >> BUT I MEAN. 
          >> THAT'S THE DIRECTION, THAT'S THE DIRECTION. >> I WILL. BUT BEFORE I SUGGEST THIS, I WANT TO BE RESPONSIBLE WITH THE DOLLARS THAT WE DON'T HAVE. SO COULD WE PULL THAT 
          TOGETHER REASONABLY? >> REASONABLY, YES. BUT IT WON'T HAPPEN RIGHT AWAY BECAUSE IT TAKES A TEAM OVER IN MARKETING COMMUNICATION TO WORK WITH TONY AND OTHERS TO GET SOMETHING SET UP, MAKE SURE IT'S A TIME THAT THAT OUR COMMUNITY CAN ATTEND. SO IT'S NOT LIKE JUST MAKING A MEETING, BUT REALLY, WHAT'S A GOOD TIME FOR FOLKS? BUT I'M SURE THAT WE CAN MAKE THAT 
          HAPPEN WITHOUT A LOT OF EXPENSE. >> SO TONY, THANK YOU FOR YOUR PRESENTATION. I APPRECIATE IT, MAYOR. MY DIRECTION IS I WOULD LOVE TO SEE IF THERE IS SOME TYPE OF PROCESS WHERE WE CAN GET SOME COMMUNITY BUY IN BEFORE WE MOVE FORWARD WITH SOMETHING RESEMBLING A DECK. I FOR 1 A.M. 
          AM VERY UNCOMFORTABLE MOVING FORWARD WITH THIS, EVEN FOR FINANCIAL REASONS. WITHOUT COMMUNITY ENGAGEMENT, THIS IS A BIG DEAL. THIS IS GOING TO BE A BIG SPEND. AND GIVEN THE HISTORY OF THIS IN THIS PARTICULAR CITY, I DON'T KNOW THAT WE SHOULD BE NOT I DON'T KNOW, I DON'T THINK I DO NOT BELIEVE WE SHOULD MOVE FORWARD THIS WAY WITHOUT TALKING TO THE COMMUNITY FIRST. THERE'S A WHOLE LOT OF UNANSWERED QUESTIONS. WE HAVE EXPERTS WHO LIVE IN THE COMMUNITY. I THINK WE SHOULD TAKE INTO ACCOUNT EVERYTHING THAT'S SAID BY EVERYONE BEFORE WE MOVE FORWARD. 
          SO WHATEVER THAT SHAKES OUT TO, I'M SORRY. I KNOW IT WASN'T EXACTLY A, B OR C FOR YOU, BUT 
          HOPEFULLY YOU CAN GLEAN WHAT I AM ASKING FOR IN THAT. >> ALL RIGHT. ANYONE ELSE? ANY 
          OTHER DIRECTION? REPRESENTATIVE. MAYOR PRO TEM. >> I'LL JUST GET STRAIGHT TO THE CHASE. I TEND TO ALIGN WITH WHAT COUNCILMEMBER MCGHEE HAS SAID. I'M UNCOMFORTABLE WITH MOVING FORWARD WITH THIS, KNOWING WHAT HAPPENED SEVERAL YEARS AGO. I'M A LITTLE CONCERNED BY JUST THE STRAIGHT RECOMMENDATION TO, AND I UNDERSTAND YOUR REASONING BEHIND THE RECOMMENDATIONS, BUT JUST GOING STRAIGHT TO A CERTAIN TYPE OF GENERATION FACILITY AND, YOU KNOW, NOT HAVING OTHERS IN THE OPTIONS. AND I WOULD LIKE TO SEE THE COMMUNITY BE ABLE TO SEE WHAT THE TRADEOFFS ARE ON COST, YOU KNOW, HOW LONG DOES THE BATTERY RUN, WHAT'S THE COST OF THAT? AND JUST HAVE BASICALLY TO DO A BETTER COMPARISON WITH THE COMMUNITY BEFORE WE WERE TO MOVE FORWARD WITH ANYTHING. AND I'M A LITTLE CONCERNED ALSO THAT WE WOULD BE PROPOSING THIS OR MOVING FORWARD BEFORE THE IRP. 
          AND SO I WOULD TEND TO ALIGN WITH WHAT COUNCILMEMBER MCGHEE HAS SAID. 
          >> OKAY. >> ANYONE ELSE. REPRESENTATIVE. REPRESENTATIVE DISTRICT SIX. 
          >> THANK YOU. THANK YOU FOR ALL THE INFORMATION. IT'S BEEN INCREDIBLY HELPFUL. AND THANK YOU FOR ALL OF THE DISCUSSION AND QUESTIONS, WHICH ARE ALSO VERY HELPFUL. MY DIRECTION WOULD BE AT THIS TIME, RECOGNIZING THAT WE'RE NOT VOTING ON PULLING THE TRIGGER OR NOT. WE'RE JUST GIVING DIRECTION TO LOOK INTO IT. I THINK THAT FACILITATING COMMUNITY ENGAGEMENT AND RESEARCHING WHAT IS OUT THERE ARE NOT MUTUALLY EXCLUSIVE. WE CAN DO BOTH. AND SO I THINK WITH THE REASONS PRESENTED, THE DEPENDABILITY THAT IS NECESSARY FOR SOME OF THE THINGS YOU 
          [03:25:05]
MENTIONED, LIKE DIALYSIS AND HOSPITALS. ET CETERA. WHAT WE'VE SEEN IN THE PAST AND KEEPING RATES AFFORDABLE, I JUST WANT TO SAY CLIMATE CHANGE IS REAL AND WE NEED TO BE PAYING ATTENTION TO IT. HOWEVER, I THINK IT'S NECESSARY. IT'S GOING TO HAPPEN. AND WE NEED DEPENDABLE ENERGY FOR OUR CONSTITUENTS. SO RESERVING ANY DECISION OR VOTE ON ANY DECISION TO ACTUALLY PULL THE TRIGGER, MY DIRECTION WOULD BE TO EXPLORE WHAT POSSIBILITIES THERE ARE, WHETHER IT BE 300 OR 600 MEGAWATT, AND ALSO INCLUDE ANY COMMUNITY ENGAGEMENT, SO THAT THERE'S GOING TO BE A LONG LEAD TIME BEFORE WE'RE I THINK WE'RE GOING TO GET TO ACTUALLY SAYING, YES, WE WANT TO DO THIS OR NOT. SO I THINK WE HAVE TIME FOR THE COMMUNITY ENGAGEMENT WHILE LOOKING INTO THIS. I JUST DON'T DON'T SEE A REASON TO NOT FIND MORE INFORMATION. THANK YOU. 
          >> MR. MAYOR. CAN I CHANGE MY DIRECTION TO WHAT COUNCILMEMBER JUST SAID, IF YOU DON'T MIND. 
          SURE. I THINK SHE'S RIGHT ABOUT BOTH. >> OKAY, SO HERE'S HERE'S WHAT I HERE'S WHAT I'D LIKE TO WRAP UP WITH. I, I WOULD ASK EVERYONE TO GO BACK AND DO A SEARCH ON YOUR EMAILS ON THE GENERAL DOWNTOWN PLAN THAT CAUSED SO MUCH CONFUSION AND GOT EVERYONE WORKED UP, AS THOUGH WE'RE GOING TO DIG UP THE CIVIC CENTER POOL TOMORROW, RIGHT? LIKE, JUST GO CHECK YOUR EMAILS AND YOU'LL SEE THAT EVERYONE WAS WORKED UP AND WE HAD, OH, YOU'RE GOING TO FILL IN THAT BLANK SPACE ON THE SQUARE. YOU'RE GOING TO DO ALL THESE THINGS. AND IT WAS JUST THE OVERVIEW. IT WAS JUST THE IT WAS JUST AN IDEA. IT DIDN'T HAVE ANY SPECIFICITY TO IT. RIGHT. 
          AND SO ALL I HEAR YOU SAYING IS WE WANT TO GO GET SPECIFICITY BEFORE WE COME BACK TO THE COMMUNITY AND AVOID THE CONFUSION THAT THAT CAUSED. THAT TO ME MAKES PERFECT SENSE AND GENERATES WAY LESS EMAILS. AND THEN ANYONE THAT THINKS THAT YOU'RE GOING TO SOLVE ANYTHING BY TAKING IT TO THE PUBLIC, AS FAR AS THE PEOPLE THAT SHOW UP ARE THE SAME PEOPLE THAT SHOW UP. AND LET'S SAY WE GET DIFFERENT PEOPLE TO SHOW UP. WHAT'S NOT GOING TO HAPPEN IS 160,000 PEOPLE, THE ENTIRE CITY SHOW UP. SO ULTIMATELY WE'RE GOING TO MAKE A DECISION BASED ON SOME SUBSET OF THE COMMUNITY, AND WE'LL BE RIGHT BACK AT THE SAME PLACE. BUT I WANT TO MAKE THAT DECISION BASED ON FACTS, BASED ON RESEARCH, NOT JUST IDEAS. AND SO TO THAT, FURTHER TO THAT DETAIL, WE HAVE TO GO OUT AND DO THE ANALYSIS. AND THAT'S WHAT I UNDERSTAND WE'RE DOING. WE'RE NOT I'M NOT GREENLIGHTING ANYTHING. WHAT I AM GREENLIGHTING IS MORE INFORMATION BEFORE WE GO TO THE COMMUNITY WITH NO INFORMATION, AND THEN HAVE EVERYONE THEN HAVE A NARRATIVE THAT THAT FILLS IN THE GAP VERSUS DETAILS AND ANALYSIS AND PUT STAFF IN A SITUATION TO BE ABLE TO ANSWER THE QUESTION, WHAT I DON'T WANT TO HAVE IS STAFF STANDING IN FRONT OF A CROWD AT THE CIVIC CENTER SAYING, I DON'T KNOW, WE GOT TO GO FIGURE IT OUT, RIGHT? I WANT TO GO BACK AND SAY, WE'VE DONE THE DUE DILIGENCE AND HERE'S WHAT WE'RE PROPOSING. AND THEN PEOPLE CAN REACT TO AN ACTUAL IDEA AND PLAN VERSUS A THOUGHT PROVOKING PROCESS THAT THAT THEN GETS PEOPLE WORKED UP THAT WE'RE GOING TO FILL IN A PARK DOWNTOWN. AND WHAT ABOUT THIS AND WHAT ABOUT THAT? AND WE'RE LIKE, HEY, NO, NO, IT'S JUST AN OVERVIEW. SO THAT TO ME IS THAT'S THE SO SUCCINCTLY I THERE'S ENOUGH DIRECTION. HERE'S HERE'S HERE'S THE CONSENSUS. 
          IT'S A OPTIONS 1 OR 2 AND COMMUNITY COMPONENT TO THAT. ONCE YOU ARRIVE AT EITHER 1 OR 2 THAT'S THAT'S WHAT I SEE. AND THEN JUST FOR ME, US SEPARATELY THAT YOU CAN FOLLOW UP WITH BECAUSE WE NEED TO GET ROCKING. I'D LIKE TO LOOK AT THE YOU PROVIDED. THANK YOU FOR THE ANSWER TO THE QUESTIONS ON THE 1%. IF WE IF WE SELL THE RECS RESELL THE RECS. WHAT I WANT TO ALSO LOOK A STEP FURTHER IS TO SAY, WHAT'S THE COST DIFFERENCE IF WE JUST FOCUS ON BUYING ENERGY AND BE AS RESPONSIBLE AS POSSIBLE, BUT DEVIATE FROM THE 100%? I WANT TO PUT THAT NUMBER OUT THERE. RIGHT WHEN WE'RE TALKING ABOUT PUBLIC INPUT, I WANT TO TEST THAT THEORY, RIGHT? I WANT TO SAY, HEY, WE CAN REDUCE YOUR BILL BY THIS MUCH, ESPECIALLY LIKE A PETERBILT. 
          YOU'RE TALKING 40, $50,000 A MONTH. THE HOTEL, THE EMBASSY SUITES. YOU KNOW, IT'S ONE THING TO SAY, OH, WE'RE ALL IN, RIGHT. BUT AND I WANT THE BUSINESS COMMUNITY TO COME IN HERE AND BE HEARD. AND THAT'S THE BEST WAY I CAN GET THEIR ATTENTION TO SAY, HEY, ARE YOU OKAY WITH WITH CRANKING YOUR YOUR BILL UP TO $50,000 OR WOULD YOU RATHER IT BE 30,000, WHATEVER THAT NUMBER IS? I WANT TO GET THAT INPUT BECAUSE I THINK THAT'S IMPORTANT. YOU GET LOST ON A, ON A, ON A HOUSE VERSUS YOU KNOW, THESE HIGH, YOU KNOW, THE CHILLER COMPANIES AND THAT SORT OF THING US COAL STORAGE. ET CETERA. SO THEN I ALSO WANT TO LOOK AT THIS. WE'VE NOT TALKED ABOUT IT. BUT IF YOU CAN COME BACK AND I KNOW Y'ALL ARE WORKING ON IT, I JUST WANT TO KNOW THE STATUS CREDIT CARD FEES. HOW MUCH ARE WE PAYING? MILLIONS. 
          >> WE'RE PAYING 2 MILLION. >> YEAH, 2 MILLION A YEAR. YEAH. SO I'M ALL FOR CONVENIENCE, BUT 
          [03:30:03]
THERE'S GOT TO BE WE GOT TO GET OFF THAT. WE GOT TO DO. I MEAN, I'M TALKING WINCO DEBIT CARD TYPE APPROACH, RIGHT. YOU KNOW, THAT'S I MEAN BECAUSE WE'RE TRYING TO GET YOU KNOW, WE'RE TRYING TO. SO I WOULD LOVE TO COME BACK WITH SOMETHING OR AN UPDATE ON ON THE CREDIT CARD FEES AS PART OF THIS. RIGHT. WE'RE I THINK WE GOT TO ADDRESS IT AT ALL LEVELS. AND THEN I JUST WANT TO GIVE CREDIT WHERE CREDIT'S DUE. AND I THINK, TONY, MAYBE YOU NEED TO SEND OUT A RECAP, BECAUSE WHAT I DIDN'T HEAR DURING WINTER STORM URI, WHEN WE WERE GOING THROUGH ALL THAT, WAS ANY OF THIS. I HEARD PEOPLE UPSET THAT THEIR POWER WAS OFF. YEAH, THAT'S THAT'S WHAT I HEARD A LOT OF. NO, WE DIDN'T HAVE ANY COMMUNITY MEETINGS. WE DIDN'T HAVE ANY INPUT. WE HAD PEOPLE THAT HAD ROLLING BLACKOUTS THAT WERE UPSET, YOU KNOW, AND THAT'S YOUR FOCUS. AND I APPRECIATE THAT. AND I DON'T DEVIATE FROM THAT FOR ANYONE. IT IS WE LIVE THAT. 
          AND IT IS CONSTANTLY. AND SO I THINK JUST THE CASE STUDY OR RECAP OF THAT JUST KIND OF THOUGH WHAT WENT INTO THAT WOULD BE, WOULD BE PROPER BECAUSE IT REALLY REFOCUSES PEOPLE AND GETS THEM FOCUSED ON, I THINK, THE CORE ISSUES. AND THEN. ONE LAST QUESTION. ARE WE REQUIRED IF A COMPANY COMES TO DENTON, ARE WE REQUIRED TO GIVE THEM POWER? CAN WE DENY THEM THE OPPORTUNITY TO 
          PLUG INTO OUR OUR SYSTEM? >> NO, WE'RE OBLIGATED TO SERVE THEM IF THEY'RE IN OUR SINGLE CERTIFIED TERRITORY. IF THEY'RE NOT, THEN THEY COULD GO TO ONCOR OR COSERV. NOW, CERTAINLY, THAT COMPANY IS GOING TO HAVE TO MEET ALL THE ZONING REQUIREMENTS AND PERMIT REQUIREMENTS THAT THE CITY MAY, MAY, MAY IMPOSE AND THAT SOMETIMES MAY MAKE IT NOT ECONOMICAL. BUT IF THEY LOCATE IN OUR SERVICE TERRITORY, WE'RE THEY'RE OBLIGATED TO SERVE THEM. NOW, WE DID MAKE CHANGES TO OUR LINE EXTENSION POLICY. SO NOW THEY'RE ON THE HOOK FOR 100% OF THE COST FOR THEM TO CONNECT TO 
          US. >> OKAY. BUT YEAH, WE CAN'T JUST SAY, OH, WE'RE NOT YOU. WE DON'T LIKE THE TYPE OF BUSINESS YOU DO. YOU MEET ALL THESE OTHER QUALIFICATIONS. WE'RE NOT GOING 
          TO PROVIDE YOU POWER. >> YEAH. AT THAT, AT THAT POINT, YOU'RE PROBABLY HAVING TO OPT IN 
          TO COMPETITION. >> YEAH OKAY. GOT IT. ALL RIGHT, WELL, THAT ANSWERS MY QUESTION. 
          YOU HAVE DIRECTION. THANK YOU VERY MUCH. APPRECIATE THE DETAILED PRESENTATION THAT LET'S YEAH WE'LL GET FOOD AND THEN AND THEN GET THE I MEAN COME RIGHT BACK. SO PLATE COME BACK SIT DOWN. BUT LET ME DO THIS. BEFORE WE DO THAT LET ME DO YOU HAVE THE LANGUAGE FOR THE CLOSED SESSION I'LL TAKE US INTO CLOSED. OH NO NO THAT'S RIGHT. OKAY. GOOD, GOOD. SO GREAT. SO AT 530 WE'LL TAKE A BREAK AND THEN WE WILL, ONCE EVERYONE'S BACK SEATED STRAIGHT AWAY, WE G. 
          [E. Receive a report, hold a discussion, and give staff direction on two-minute pitch requests for:
1)	2025 Pride Month Resolution  
2)	Historic City Hall Building
    [Estimated Presentation/Discussion Time: 30 minutes]]
          >> GOOD AFTERNOON. WELCOME BACK TO THIS MEETING. IT IS 544, AND WE ARE ON OUR LAST ITEM FOR THE WORK SESSION. IT'S ITEM D25028. RECEIVE REPORT, WHOLE DISCUSSION. GIVE STAFF DIRECTION ON TWO MINUTE PITCH REQUEST. AND I'LL NOTE THAT ITEM TWO HAS BEEN REMOVED. THAT REQUEST HAS BEEN REMOVED. ONLY LEAVES US TO ONE AND ALTERNATIVE STAFF. CHRISTY FOGEL CHIEF OF STAFF. AS A REMINDER, THE TWO MINUTE PITCH PROCESS REQUESTING COUNCIL MEMBER WILL HAVE TWO MINUTES TO DESCRIBE AND JUSTIFY THE REQUEST, AND REMAINING COUNCIL MEMBERS WILL HAVE A MAXIMUM OF ONE MINUTE TO PROVIDE THEIR FEEDBACK AND INDICATE THEIR POSITION ON, OR THEIR SUPPORT FOR, THE USE OF STAFF. TIME TO RESPOND TO THE REQUEST. A CONSENSUS OF SIX COUNCIL MEMBERS IS REQUIRED FOR RESOLUTION OR ORDINANCE TO BE PLACED ON A FUTURE CITY COUNCIL AGENDA PRIOR TO A WORK SESSION ON THE REQUEST. WITH THAT, I WILL TURN IT OVER TO THE REQUESTING 
          COUNCIL MEMBER. >> AND WELL, AND JUST TO CLARIFY, SO WE ALL KNOW, IF YOU SAY NOTHING IS A NO VOTE RIGHT OR VOTE AGAINST OR CONSIDERED NO RIGHT, YOU GOT TO SAY YES. 
          RIGHT? OKAY. GOT IT. ALL RIGHT. REPRESENTATIVE FOR DISTRICT TWO, YOU HAVE THE FLOOR. 
          >> THANK YOU. JUNE MARKS THE ANNIVERSARY OF THE STONEWALL UPRISING, AND WITH IT, THE ANNUAL CELEBRATION OF LGBT. LGBTQ, TWO PLUS PRIDE. AND ACROSS THE COUNTRY, RIGHT HERE IN DENTON, PRIDE MONTH IS AN OPPORTUNITY TO HONOR, COURAGE, AFFIRM EQUALITY, AND RECOMMIT TO OUR INCLUSIVE FUTURE. DENTON'S RECORD SHOWS THAT WE WALK OUR TALK. OUR FIRST CORE VALUE IS INCLUSION, CREATING A CITY WHERE EVERY RESIDENT IS VALUED AND RESPECTED. WE STRENGTHEN THAT COMMITMENT. 22 WITH OUR NONDISCRIMINATION ORDINANCE AGAIN IN 25, WHEN VOTERS OVERWHELMINGLY AGREED TO ALTER THE GENDERED LANGUAGE IN OUR CHARTER, THESE ACTIONS HELPED DENTON EARN TOP TIER MARKS FOR THE HUMAN RIGHTS CAMPAIGN MUNICIPAL EQUALITY INDEX, MAKING US A COMMUNITY WHERE THE LGBTQ CROWD CAN. FAMILIES CAN TRULY LIVE, WORK, PLAY AND CONTRIBUTE. 
          YET I WANT TO POINT OUT PROGRESS IS NEVER JUST SELF-EXECUTING. ACROSS TEXAS, THERE CONTINUES TO 
          [03:35:05]
BE RHETORIC AND POLICIES THAT CONTINUE TO TARGET FOLKS FROM THIS COMMUNITY. A FORMAL RESOLUTION OF SUPPORT FROM THIS COUNCIL SENDS AN UNAMBIGUOUS MESSAGE. DENTON STANDS FOR DIGNITY, SAFETY AND OPPORTUNITY FOR EVERYONE. THE RESOLUTION. THE RESOLUTION BEFORE YOU IS STRAIGHTFORWARD. IT RECOGNIZES JUNE AS DENTON LGBTQ PLUS PRIDE MONTH INVITES OUR RESIDENTS TO CELEBRATE THE CONTRIBUTION OF THIS, THESE FRIENDS, AND ENCOURAGE US ALL TO BUILD ON THE CULTURE OF ACCEPTANCE WE'VE CULTIVATED HERE. BECAUSE PRIDE MONTH IS ALREADY UNDERWAY, I'M ASKING FOR CONSENSUS TONIGHT TO GO DIRECTLY TO A RESOLUTION AT THE NEXT MEETING TO MAKE IT IN AN EXPEDITED FASHION. A TIMELY, UNIFIED STATEMENT WILL AMPLIFY OUR COMMUNITY EVENTS, SUPPORT LOCAL BUSINESSES, AND REMIND EVERY RESIDENT, ESPECIALLY OUR YOUTH, THAT DENTON'S WELCOME IS REAL AND LASTING. I RESPECTFULLY URGE YOUR SUPPORT AND LET'S AFFIRM OUR SHARED VALUES. ADOPT THIS RESOLUTION NEXT MONTH AND KEEP DENTON MOVING TOWARDS AN INCLUSIVE FUTURE WE ALL 
          ENVISION. >> ALL RIGHT. >> OKAY. ANYONE ELSE CARE TO 
          SPEAK? REPRESENTATIVE DISTRICT ONE. >> I'LL SUPPORT IT. 
          >> ALL RIGHT. ANYONE ELSE? REPRESENTATIVE. MAYOR PRO TEM. >> I'LL SUPPORT IT. 
          >> ANYONE ELSE? REPRESENTATIVE DISTRICT FIVE. YEAH. >> A COUPLE OF YEARS AGO, I WAS VERY BLESSED TO BE ACCEPTED INTO THE EQUALITY TEXAS LEADERSHIP. PROGRAM. BLESSED TO HAVE GRADUATED FROM THAT. AND I'M. I CONSIDER MYSELF AN ALLY, NOT AN ALLY, BECAUSE OF ANY WORK I'VE DONE OR ANYTHING I'VE SUPPORTED. I'M AN ALLY BECAUSE OF RELATIONSHIPS THAT I HAVE WITHIN THE COMMUNITY. SO YEAH, HAPPILY SUPPORT THIS. CERTAINLY URGE ALL OF US TO DO SO BECAUSE WHETHER OR NOT WE KNOW IT, WHETHER OR NOT WE WANT TO ADMIT IT, EVERYONE AROUND US IN OUR LIFE, THERE'S SOMEONE AROUND US WHO IS A MEMBER OF THIS COMMUNITY, WHETHER OPENLY SO OR PRIVATELY. 
          SO THIS IS SIMPLY THE RIGHT THING FOR US TO DO. AND THIS IS A COMMUNITY THAT GENERALLY DOES 
          THE RIGHT THING. SO I HOPE WE'LL DO SO ONCE AGAIN TODAY. >> OKAY. ANYONE ELSE? 
          REPRESENTATIVE DISTRICT SIX. >> COUNCILPERSON JESTER I WOULD SAY THAT I AGREE AND WANT TO MAKE SURE THAT WE ARE KNOWN AS AN INCLUSIVE, WELCOMING COMMUNITY. I, I'M NOT IN FAVOR OF ADOPTING EXACTLY THE VERBIAGE. SO I DO THINK THAT THAT IT WOULD BE WORTH HAVING A CONVERSATION ABOUT THAT. HOWEVER, I AM IN FAVOR OF SUCH A RESOLUTION. 
          >> OKAY. >> ANYONE ELSE? SEEING NONE? I'LL TURN IT OVER TO YOU TO 
          EVALUATE NEXT STEPS. >> BUT SO THAT'S FIVE. IN ORDER FOR IT TO COME BACK AS AN ORDINANCE OR AS A RESOLUTION, THERE WOULD NEED TO BE CONSENSUS OF SIX. 
          >> UNDERSTOOD. OKAY. THANK YOU VERY MUCH. THEN UNLESS IS THERE ANYONE ELSE? OKAY. AT 550. THAT CONCLUDES OUR WORK SESSION. TAKES US TO 630 YEAH. SHE'S HERE. GOOD AFTERNOON 
          [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:]
AND WELCOME TO THIS MEETING OF THE DENTON CITY COUNCIL. TODAY IS LET ME GET THERE. MAKE SURE I GET IT RIGHT. JUNE 17TH, 2025. IT IS 631. AND WE DO HAVE A QUORUM, SO I'LL CALL THE MEETING BACK TO ORDER. FIRST THING ON THE AGENDA PLEDGES TO THE UNITED STATES AND TEXAS FLAG. PLEASE 
          STAND WITH ME IF YOU'RE ABLE. FOR A SECOND. >> THANK YOU. TAKE TIME. ALL RIGHT. I PLEDGE ALLEGIANCE TO THE 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. 
          [2. PROCLAMATIONS/PRESENTATIONS]
          >> AWESOME. >> OKAY. AND FIRST THING ON OUR AGENDA IS PROCLAMATION FOR STEVE EGGER. IF YOU COULD MEET ME DOWN AT THE PODIUM, AND THEN ANYBODY THAT'S WITH YOU CAN MEET US DOWN 
          THERE AS WELL. >> OKAY. >> WE ARE. 
          [03:40:01]
          >> GOOD EVENING EVERYONE. >> HEY MY MAN. >> HOW ARE YOU, MAN? MAN, GREAT 
          TO SEE YOU. YES, SIR. YEAH. NO, THAT'S GREAT MAN. OKAY. >> SO ARE YOU. YOU GOING TO. 
          OKAY, GREAT. SO I'LL TURN IT OVER TO STAFF TO TELL US WHAT WE'RE RECOGNIZING. 
          >> GOOD EVENING. I'M CHRISTINE TAYLOR, ASSISTANT CITY MANAGER, AND WE ARE HONORING STEVE EDGAR TONIGHT WITH A PROCLAMATION HE IS TERMING OUT AS OUR BOARD CHAIR OF THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD. HE'S BEEN OUR CHAIR THIS LAST YEAR AND HAS SUPPORTED ECONOMIC DEVELOPMENT ACTIVITIES, ASKED TOUGH QUESTIONS, AND REALLY HELPED US GET OUR INITIATIVE AND MOMENTUM BACK UP THIS PAST YEAR. HE IS EXTREMELY IMPORTANT TO THIS COMMUNITY AND WE ARE SO GRATEFUL FOR HIS SUPPORT, TOUGH QUESTIONS AND CONTINUED SUPPORT OF THE PROGRAM AND ALL THE EFFORTS. AND THEN I'LL LET STAFF QUICKLY SAY ALL THE AREAS THAT HE HAS SUPPORTED US IN THIS LAST YEAR. KRISTIN PULIDO, MAIN STREET PROGRAM MANAGER THANK YOU FOR YOUR TIME. WE KNOW YOU'RE A VERY BUSY MAN, SO AND IT TAKES A LOT TO VOLUNTEER THIS TIME. SO THANK YOU VERY MUCH. THANK YOU FOR GETTING OUR INCENTIVES OVER THE LINE THIS PAST YEAR. SO WE'RE JUST VERY GRATEFUL FOR ALL 
          THE WORK THAT YOU'VE DONE THIS YEAR. >> MATILDA WEEDEN, ECONOMIC DEVELOPMENT SPECIALIST WE MENTIONED STEVE'S HELP OVER THE LAST YEAR, BUT HE'S ALSO SERVED ON OUR BOARD FOR, I BELIEVE, SIX TO YEAH, LIKE A LONG TIME AND HAS STOOD WITH US THROUGH A LOT OF UPS AND DOWNS. SO WE REALLY APPRECIATE YOU KIND OF BEING A SOLID SOUNDING BOARD FOR ALL OF 
          OUR ACTIVITIES THROUGHOUT THE YEARS. THANK YOU. >> ANYTHING YOU WANT TO SHARE? 
          >> NO. >> ARE YOU SURE? YES. >> OKAY. WELL, IF STEVE IS AMONGST HIS OTHER QUALITIES, HE ALSO IS BATTLE TESTED. HIS HOSPITALS NEXT TO MAYHILL. AND IF YOU'VE DRIVEN BY MAYHILL THE LAST FEW YEARS AND UNDERSTOOD. PRETTY BRIDGE AFTER BRIDGE WIDENING ALL THE THINGS YOU ARE, YOU ARE TRULY AMAZING. AND WHAT AN ASSET TO THE TO THE COMMUNITY. SO THANK YOU VERY MUCH. I TRULY ENJOY OUR OUR CONVERSATIONS AND ALL THE ALL THE THINGS YOU'VE DONE IN THIS CAPACITY AND OTHERS. SO THANK YOU VERY MUCH. AND I HAVE A PROCLAMATION HERE, AND IT'S PROCLAMATION BY THE MAYOR OF THE CITY OF DENTON, TEXAS, TO ALL WHOM THESE PRESENTS SHALL COME. GREETINGS. WHEREAS STEVE SERVED ON THE DENTON ECONOMIC DEVELOPMENT PARTNERSHIP BOARD AND WEST PARK TOURS NUMBER TWO BOARD FROM 2016 TO 2025, AND HAS SERVED AS A CHAIR AND VICE CHAIR OF BOTH BOTH BOARDS DURING HIS TENURE. AND WHEREAS, STEVE HAS TIRELESSLY CHAMPIONED ECONOMIC DEVELOPMENT AND THE DENTON BUSINESS COMMUNITY THROUGH COUNTLESS VOLUNTEER HOURS IN SUPPORT OF THE CITY OF DENTON. THE DENTON ECONOMIC DEVELOPMENT PARTNERSHIP AND THE DENTON CHAMBER OF COMMERCE, AND THE DEVELOPMENT OF SMALL AND LARGE BUSINESSES IN DENTON. AND WHEREAS, THE CITY OF DENTON ECONOMIC DEVELOPMENT AND CITY COUNCIL WISH TO RECOGNIZE STEVE FOR HIS SELFLESS LEADERSHIP AND SERVICE TO THE CITY OF DENTON, INCLUDING THE UNMATCHED CONTRIBUTIONS, ECONOMIC DEVELOPMENT, AND ENTIRE OF THE ENTIRE DENTON BUSINESS COMMUNITY. AND NOW, THEREFORE, I, GERALD HUDSPETH, MAYOR, THE CITY OF DENTON, TEXAS, FORMALLY CONVEYED THIS SINCERE AND WARM APPRECIATION TO STEVE FELT BY THE RESIDENTS AND STAFF OF THE CITY OF DENTON IN A PERMANENT MANNER. BY READING THIS PROCLAMATION INTO THE OFFICIAL MINUTES OF THE CITY OF DENTON, AND FORWARD TO HIM A TRUE COPY 
          THEREOF. IF WE CAN GIVE HIM A HAND. >> THANK YOU. THANK YOU. THANK YOU. YES, SIR. APPRECIATE YOU. YES. THANK YOU. THANK YOU. Y'ALL HAVE TO SLIDE IN. OH. DID YOU. 
          DID YOU WANT TO ADD ANYTHING? YOU GOOD? YOU SURE? >> OKAY. 
          >> YEAH I AGREE. OKAY. WELL, YEAH. COME ON IN. WATER'S FINE. ALL RIGHT, HERE WE GO. ALL 
          RIGHT. NICE. ALL RIGHT. >> I SHOULD. >> I SHOULD THANK. 
          >> YOU VERY MUCH. >> I APPRECIATE YOU. YES, YES. >> TELL THE FAMILY WE SAID. 
          >> HEY. >> THANK YOU EVERYONE. APPRECIATE YOU. THANK YOU, THANK 
          YOU. GOOD TO SEE Y'ALL. THANK YOU. THANK YOU. >> OKAY, IF WE COULD PLAY THE 
          [3. PRESENTATIONS FROM MEMBERS OF THE PUBLIC]
          VIDEO FOR ADDRESSING COUNCIL, PLEASE. >> 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 
          [03:45:04]
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 RESOLUTION 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. 
          >> ALL RIGHT. FIRST SPEAKER IS MISS TRACY DUCKWORTH. TRACY. DUCKWORTH. OKAY. NEXT SPEAKER IS 
          MATT PINEDA. >> GOOD DAY TO START. >> YES, SIR. IF YOU CAN GIVE 
          YOUR NAME, PLEASE. >> MATT PINEDA. >> THANK YOU. AND. I DIDN'T REALLY WRITE ANYTHING OUT. SO I'M JUST GOING TO START OFF WITH. I AIN'T NO STRANGER TO LOVE. YOU KNOW, THE RULES. AND SO DO I. SORRY. NOW THAT I GOT YOUR ATTENTION, BASICALLY, THAT'S NOT WHAT I WAS GOING TO TALK ABOUT. SO EARLIER TODAY, YOU GUYS HAD A CONVERSATION ABOUT THE FUTURE OF BASICALLY OUR ENERGY PROGRAM AND EVERYTHING WHERE WE MOVE FORWARD AND THERE ARE PEOPLE COMING AFTER ME WHO ARE GOING TO HAVE FACTS AND FIGURES AND NUMBERS AND THINGS. SO I'M NOT GOING TO GO THERE. BUT ONE OF THE THINGS I DID WANT TO TALK ABOUT, AND BECAUSE I LIKE TO POLITICIZE STUFF, IS THIS NONE OF THIS STUFF EXISTS IN A VACUUM, RIGHT? WE HAVE BASICALLY A THING THAT WE'RE LOOKING AT IN THE FUTURE ABOUT DENTON'S CAPACITY AND WHETHER OR NOT WE HAVE ADEQUATE POWER TO BASICALLY KEEP PEOPLE'S LIGHTS ON, KEEP PEOPLE'S DIALYSIS MACHINES GOING ON, ETC. ONE OF THE PROBLEMS THAT WE DON'T THINK ABOUT IS WHAT GETS VOTED ON ON COUNCIL, THAT THAT AFFECTS THAT, RIGHT? HOW MUCH ARE WE BRINGING INTO THE CITY? WHAT ARE WE BRINGING IN THAT'S PUTTING A STRAIN ON US? AND I'D LIKE I DON'T KNOW, MAYBE YOU GUYS COULD ADD IT TO LIKE FUTURE VOTES AND THINGS WHEN WE BRING IN NEW BUSINESSES TO KIND OF FIGURE OUT EXACTLY WHAT THE STRAIN ON OUR LOCAL GRID WOULD BE. WHENEVER WE'VE HAD CONVERSATIONS ABOUT THIS IN THE LAST YEAR, THE THING THAT JUMPS OUT TO ME IS, IS THE DATA CENTER. I THINK ANECDOTALLY, THE ESTIMATE ON THAT WAS THAT THIS DATA CENTER WOULD BASICALLY BE USING ABOUT THE SAME AMOUNT OF ENERGY AS THE ENTIRE REST OF THE CITY COMBINED, WHICH IS A HUGE PROBLEM BECAUSE MY QUESTION IS, HOW MANY JOBS IS THIS DATA CENTER BRINGING IN? BASICALLY, WE'RE GOING TO HAVE TO RECONFIGURE OUR FUTURE ENERGY GENERATION TO ACCOMMODATE THIS THING THAT USES THE SAME AMOUNT OF ENERGY AS THE REST OF THE CITY. BUT NOBODY'S EVER TALKING ABOUT THAT. WHEN THESE VOTES COME UP, BASICALLY, WE GET THINGS THAT SAY WE'RE GOING TO STAND AGAINST NEW GAS PLANTS, BUT ONCE AGAIN, THE DATA CENTER USING AS MUCH ENERGY AS THE REST OF THE CITY COMBINED. OKAY, THAT INCLUDES TX, THAT INCLUDES PETERBILT, THAT INCLUDES UNT, THAT INCLUDES THE AIRPORT, THAT INCLUDES THINGS THAT HAVE THOUSANDS AND THOUSANDS OF JOBS. 
          BUT WE'RE GETTING, WHAT, 2025 JOBS OUT OF A DATA CENTER? YOU KNOW, EXACTLY WHAT IS THE BENEFIT OF THIS THING THAT WE'RE GOING TO WIND UP, YOU KNOW, HAVING TO SUPPLY A VAMPIRIC AMOUNT OF, YOU KNOW, ENERGY FOR. SO, YES, IF YOU WERE ON THE DAIS AND YOU VOTED FOR THE DATA CENTER, AND I KNOW YOU DIDN'T, I DIDN'T MEAN TO POINT AT YOU, BUT I KNOW YOU DIDN'T. I'M GOING TO 
          [03:50:01]
GIVE YOU A PASS ON THIS ONE. YEAH, SURE. HER SHE DID. YEAH. I DON'T KNOW IF YOU DID. ANYWAY, SOME OF YOU HAVE VOTED ON IT TWICE. BUT THE THING IS, YOU KNOW, IN THE COMING YEAR, IN THE COMING YEAR, HOPEFULLY WHAT HAPPENED TODAY IS JUST THE BEGINNING OF A CONVERSATION, HOPEFULLY GOING ON. I KNOW THAT IT'S, YOU KNOW, THE SKY IS NOT FALLING RIGHT NOW. WE'RE GOING TO BE GETTING INFORMATION ON ON WAYS THAT WE CAN GENERATE THIS, AND HOPEFULLY WE WIND UP IN SOMETHING A LITTLE BIT MORE AMENABLE TO OUR ENVIRONMENT, TO PEOPLE LIKE ME AND MY SON WHO HAVE ASTHMA, YOU KNOW, THAT THINGS THAT WON'T BASICALLY BE PUTTING POISON INTO THE AIR, HOPEFULLY WE'LL GO WITH MORE RENEWABLES. HOPEFULLY WE'LL HAVE BATTERY SUPPLY AND EVERYTHING. 
          BUT ONCE AGAIN, THESE THINGS DO NOT EXIST IN A VACUUM. WHEN WE HAVE ITEMS COMING THROUGH THAT ARE GOING TO PUT AN UNDUE AMOUNT OF STRESS ON OUR LOCAL ENERGY SUPPLY, YOU KNOW, PLEASE THINK ABOUT THOSE BEFORE YOU MOVE, BEFORE YOU MOVE FORWARD ON THEM. BECAUSE, YOU KNOW, I LOVE I YOU KNOW, I'M NOT ONE OF THOSE PEOPLE WHO HAS PICTURES MADE OR USES IT TO WRITE MY POSTS AND EVERYTHING, BUT I LAUGH AT THIS STUFF OTHER PEOPLE DO, YOU KNOW, DO WITH IT. STILL, I DON'T THINK WE SHOULD BE SUPPORTING THAT AT THE EXPENSE OF THE REST OF THE TOWN AND OUR FINANCES. THANK 
          YOU. >> THANK YOU. NEXT SPEAKER IS ITSELF. IF YOU CAN GIVE YOUR 
          NAME, YOU HAVE FOUR MINUTES. >> GOOD EVENING. MY NAME IS ED SOPH. THE AVERAGE ATMOSPHERIC CO2 LEVEL IN 2018, THE YEAR THE DENTON ENERGY CENTER STARTED OPERATION, WAS ALMOST 409 PARTS PER MILLION. BY MAY OF THIS YEAR, THE LEVEL REACHED A RECORD HIGH OF 430 PARTS PER MILLION. 
          THE DEX OPERATION CONTRIBUTED TO THAT INCREASE BETWEEN JULY 2018 AND APRIL 2025. THE DEC RELEASED OVER 900,000 TONS OF GREENHOUSE GAS. LET ME POINT SOMETHING OUT TO YOU TODAY. IT'S YOUR WORK SESSION. DME SAID THAT THE DEX EMISSIONS WERE ONLY TEN, NO MORE THAN 10% OF DENTON'S CARBON FOOTPRINT. WHAT HE DIDN'T TELL YOU WAS, IS THAT THE MOST RECENT CARBON FOOTPRINT THAT DENTON HAS IS FOR 2019, AND AT THAT TIME, THE DEC HAD BEEN RUNNING AT THE MOST FIVE MONTHS. SO WHAT HE TOLD YOU IS ENTIRELY FALSE. JUST NOW. SUSTAINABILITY IS WORKING ON GETTING THE 2020 CARBON FOOTPRINT. THAT'S HOW FAR BEHIND WE ARE WITH HOTTER AND DRIER SUMMERS, MORE EXTREME AND COSTLY WEATHER EVENTS, AND SCIENCE BASED FORECASTS FOR A FUTURE THAT WILL DANGEROUSLY ALTER OUR QUALITY OF LIFE. ADDING ANOTHER GAS FIRED FACILITY TO DENTON'S ENERGY PORTFOLIO IS DOWNRIGHT DISASTROUS. POLICIES AND ORDINANCES MUST BE EXPEDITED TO PREPARE FOR THE CHALLENGES OF CLIMATE CHANGE. YET THE CITY'S CLIMATE ACTION PLAN STILL AWAITS COMPREHENSIVE DISCUSSION AND A CODIFIED AND TIMELY IMPLEMENTATION SCHEDULE. DMS INCENTIVES FOR THE INSTALLATION OF RESIDENTIAL SOLAR WERE SCRAPPED BECAUSE OF A VALUE OF SOLAR STUDY COMMISSIONED BY DME THAT DENIED ANY SOCIETAL BENEFITS OF RESIDENTIAL SOLAR. IN DENTON, THE ECONOMIC AND ENVIRONMENTAL IMPACTS OF THE DEC, HOWEVER, WERE NOT EVEN CONSIDERED IN THAT STUDY. THERE ARE NO DME INCENTIVES FOR BATTERY STORAGE, NOR ARE THERE DME SOLAR INSTALLATIONS ON CITY FIRE STATIONS, POLICE DEPARTMENT FACILITIES, OR CITY SERVICE BUILDINGS LIKE THE ONE THAT HOUSES THE SUSTAINABILITY DEPARTMENT. BUILDING AND DEVELOPMENT CODES ARE WOEFULLY INEFFECTIVE. SO TIMELY AND PARDON ME, RESPONSIBLE ACTION IS VITALLY NECESSARY. NOW. A CLIMATE IMPACT AND RISK MANAGEMENT STUDY MUST BE DONE BEFORE CONSIDERING A SECOND DEC, WHETHER IT'S A NEW OR EXISTING FACILITY, WE NEED TO KNOW WHAT WE'LL BE FACING IN THE NEXT 30 YEARS AND HOW BEST TO MITIGATE THE INCREASING ECONOMIC, SOCIAL AND ENVIRONMENTAL IMPACTS OF CLIMATE CHANGE ON THE CITY, ITS RESIDENTS, ITS SERVICES AND ITS INFRASTRUCTURE. THE STUDY SHOULD ALSO INCLUDE AN OBJECTIVE ASSESSMENT OF THE ECONOMIC BENEFITS OF DISTRIBUTED ENERGY RESOURCES, SUCH AS DEMAND RESPONSE, COMMUNITY SOLAR MICROGRIDS AND, YES, ENERGY STORAGE. THIS DONE BEFORE ANOTHER FOSSIL FUEL LIABILITY IS CONSIDERED. THE STUDY SHOULD BE WITHIN THE FRAMEWORK OF THE CLIMATE IMPACT AND RISK MANAGEMENT STUDY AND SHOULD BE FULLY SHARED WITH THE PUBLIC, YOUR CONSTITUENTS, DMS CUSTOMERS OWN DME AND YOU ARE DMS BOARD OF 
          [03:55:10]
DIRECTORS. YOU HAVE THE OBLIGATION TO PUT DENTON ON COURSE TO NET ZERO CARBON BY 
          2050. THANK YOU VERY MUCH. >> THANK YOU. AND THE NEXT SPEAKER IS JODY ISMERT. IF YOU 
          CAN GIVE YOUR NAME, YOU'LL HAVE FOUR MINUTES. >> JODY ISMERT I STOOD HERE BEFORE COUNCIL AROUND A DECADE AGO, AND I'M GOING TO SAY SOME OF THE SAME THINGS I SAID BACK THEN, BUT THIS TIME WITH MORE KNOWLEDGE AND UNDERSTANDING THAT THE THINGS WE WARNED ABOUT BACK THEN HAVE SINCE HAPPENED. I STOOD HERE AND WARNED COUNCIL THAT CLIMATE CHANGE IS REAL AND WILL CREATE MORE EXTREME STORMS, WHICH WILL ULTIMATELY CAUSE MORE FINANCIAL RISK TO OUR CITY. I ASK COUNCIL TO NOT PURCHASE THE FIRST GAS PLANT BECAUSE IT MADE OUR RATEPAYERS AND CITY MORE VULNERABLE. IT ENDED UP COSTING US NEAR A BILLION, INCLUDING INFRASTRUCTURE COSTS. I ALSO TALKED ABOUT GAS BEING VOLATILE ON THE MARKET. SINCE THEN, WE'VE SEEN THE FIRST GAS PLANT LOSE MONEY IN THE FIRST FEW YEARS BECAUSE GAS WAS CHEAPER THAN DMS. ORIGINAL MODELS PREDICTED DURING THE PROPOSED PROJECT, WE'VE SEEN CLIMATE CHANGE INCREASE INTENSITY OF STORMS, AND WE'VE SEEN CORPORATIONS AND INSURANCE COMPANIES INCREASE RISK AND PRICES IN DIRECT RELATION TO CLIMATE CHANGE. WE'VE EXPERIENCED WINTER STORM URI, WHICH COST OUR STATE DEARLY IN LOST LIVES AND COST OUR CITY A HORRIBLE FINANCIAL BURDEN. DURING THAT STORM, EXPECTED GAS DIDN'T ARRIVE TO OUR GAS PLANT AND WE COULDN'T EVEN RUN IT. WE'RE STILL PAYING THE COST OF THE FINANCIAL BURDEN OF THAT EXTREME STORM. WINTER STORM URI WAS CAUSED BY THE WEAKENING OF THE JET STREAM, WHICH ALLOWED ARCTIC AIR TO DIP INTO TEXAS. THE WEAKENING OF THE JET STREAM IS CAUSED BY CLIMATE CHANGE AND OUR WARMING PLANET CHANGING ATMOSPHERIC PATTERNS. WE KNOW THIS. OUR CITY HAS ALSO SINCE THEN SEEN DME DOWNGRADED BY THE RATINGS AGENCIES BECAUSE OF DMS COMBINED DEBT DUE TO THE FIRST GAS PLANT AND WINTER STORM URI COMBINED. AND WE WILL SEE MORE OF THESE TYPES OF INCIDENTS AND CHANGES IN THE FUTURE, NOT LESS. WE'VE ALSO SEEN DME RECENTLY RAISE RATES IN ORDER TO ATTEMPT TO BALANCE THEIR BUDGET, AND TO GET THE RATINGS BACK BY THE RATINGS AGENCIES TO GET THEM BACK UP AGAIN. AND ON THE HEELS OF THIS, THEY'RE NOW ASKING TO FURTHER BURDEN OUR RATEPAYERS WITH MORE DEBT, TO BUY ANOTHER GAS PLANT, TO ADD MORE RISK TO OUR VULNERABLE, VULNERABLE PORTFOLIO. I'M HERE TODAY ASKING YOU TO STOP THE BLEEDING. 
          CLIMATE CHANGE IS ONLY GOING TO GIVE US MORE EXTREME STORMS IN THE FUTURE THAT INCREASE OUR RISK, THAT WE NEED TO PREPARE OUR CITY FOR. AND ULTIMATELY, AS THESE STORMS HAPPEN, IT'S ONLY GOING TO COST US MORE. WE SHOULD EXPECT RISING COSTS, NOT LOWER COSTS, IN THE FUTURE DUE TO CLIMATE CHANGE. SO I'M GOING TO ASK YOU TO INSTEAD HOLD TO OUR CLIMATE ACTION PLAN THAT YOU ALL VOTED ON, TRULY PREPARE OUR CITY PROPERLY, AND MAKE US NET ZERO CARBON EMISSIONS BY 2050. AS PROMISED. ADDING ANOTHER GAS PLANT WILL NOT DO THAT, AND IT IS NOT IN LINE WITH OUR STATED GOALS IN THE CLIMATE ACTION PLAN. IT'S TIME TO ACTUALLY HOLD TO OUR MISSION AND ACTION PLANS AND VOTE ON ENERGY THAT'S IN LINE WITH THOSE STATED GOALS. OTHERWISE, WHY BOTHER VOTING IN FAVOR OF THESE PLANS? I'M HERE AGAIN TELLING YOU THAT OUR COSTS ARE ONLY GOING TO INCREASE IN THE FUTURE, AND OUR RISK RISES THE LONGER WE DON'T PREPARE OUR CITY FOR CLIMATE READINESS. WE SHOULD BE USING PERMEABLE CONCRETE TO DECREASE FLOODING. WE SHOULD HAVE DISTRIBUTED ENERGY IN THE FORM OF SOLAR ON ROOFTOPS, SOLAR FARMS, AND WIND ENERGY THROUGHOUT OUR CITY. 
          THESE ARE THINGS WE CAN DO NOW TO PREPARE OURSELVES FOR THE FUTURE THAT WE KNOW IS COMING. 
          IN MY PROFESSIONAL LIFE, I'M OFTEN CHALLENGED BY VERY INNOVATIVE, CREATIVE, AND EXTREMELY SMART INDIVIDUALS, AND HOW WE APPROACH THINGS IS WE ACCEPT REALITY, WE PREPARE FOR THE FUTURE, AND WE EVOLVE TO MEET IT. AND IN DOING THAT, WE'RE OFTEN SUCCESSFUL. I ENCOURAGE OUR CITY TO DO THE SAME. WE NEED TO ADOPT THESE BETTER TECHNOLOGIES THAT REDUCE OUR RISK AND MAKE OUR CITY BETTER PREPARED FOR CLIMATE CHANGE RISK. WE NEED TO CHANGE THE MODEL OF HOW WE DO BUSINESS TO MEET THAT DEMAND. DME COULD OWN THE SOLAR PANELS, AND THE RESIDENTS COULD OPT TO HAVE SOLAR ON ROOFTOPS AT A DISCOUNT. ALL CITY BUILDINGS SHOULD HAVE SOLAR ROOFTOPS. WE SHOULD SERIOUSLY LOOK AT BATTERY STORAGE THAT WE CAN USE DURING OFF PEAK HOURS. PLEASE LOOK AT OUR POLICIES AS GUIDES AND WORK TO MEET THEM. 
          >> THANK YOU. THANK YOU VERY MUCH. NEXT SPEAKER IS DEB ARMATURE. COME DOWN AND GIVE 
          YOUR NAME. YOU'LL HAVE FOUR MINUTES. >> DEB ARMENTOR I SECOND 100% OF WHAT THE LAST FEW SPEAKERS SAID. AND I ENCOURAGE COUNCIL MEMBERS TO ASK ASK QUESTIONS IF YOU ARE SO INCLINED. I'M NOT GOING TO REPEAT WHAT THEY SAID, JUST ADD TO IT. SO TODAY I ATTENDED IN 
          [04:00:06]
PERSON A WORK SESSION WHERE I SAW THIS COUNCIL. A MAJORITY OF THIS COUNCIL GIVE DIRECTION TO MOVE FORWARD ON EXPLORING THE POSSIBILITIES FOR A GAS PLANT THAT WE DO NOT NEED WHILE IN THE SAME WORK SESSION, A MAJORITY OF THE SAME COUNCIL GAVE DIRECTION TO ELIMINATE AND AFTER SCHOOL CITY REC CENTER PROGRAM THAT DENTON KIDS AND WORKING FAMILIES DESPERATELY NEED. LET ME EXPLAIN WHY THAT IS, AND LET ME EXPLAIN THE CONNECTION BETWEEN THE TWO. FIRST OF ALL, THE CITY REC CENTER PROGRAM IS SO MUCH MORE AFFORDABLE THAN THE DISD PROGRAM THAT IF YOU ASK ANY FAMILY ENROLLED IN THE CITY PROGRAM, WHICH APPARENTLY Y'ALL HAVE NOT WHY THEY CHOSE THE CITY PROGRAM OVER THE DISD PROGRAM, THEY WILL TELL YOU IT IS BECAUSE OF THE COST. I WANT TO RECOGNIZE OUR SOME OF OUR AMAZING REC CENTER AFTER SCHOOL STAFF HERE WHO HAVE COME OUT WEARING HOMEMADE T SHIRTS THAT THEY MADE TO DEFEND THIS PROGRAM THAT THEY LOVE, AND THE KIDS THAT THEY LOVE. OKAY, THIS IS A PROGRAM THAT IS DESPERATELY NEEDED. THE REASON WHY, AT ONE OF OUR ELEMENTARY SCHOOLS, THAT THE ISD AFTER SCHOOL PROGRAM DOESN'T MAKE IS BECAUSE IT'S NOT AFFORDABLE TO THOSE FAMILIES. THAT'S WHY THE PROGRAM IS GOING TO CONTINUE AT MLK. OKAY. I ALSO WANT TO PUSH BACK ON THE IDEA THAT GETTING RID OF, QUOTE, SEASONAL EMPLOYEES DOESN'T REALLY COUNT AS LAYOFFS OR LOSING WORKFORCE SEASONAL EMPLOYEES IS REALLY A MISNOMER. WHEN WE TALK ABOUT SEASONAL EMPLOYEES, WE'RE NOT JUST TALKING ABOUT SOMEBODY WORKING FOR A WEEK AT SPIRIT HALLOWEEN PART TIME. THESE ARE PEOPLE WHO WORK YEAR ROUND DURING THE SCHOOL YEAR BECAUSE IT'S AN AFTER SCHOOL PROGRAM AND SUPPORT THEMSELVES AND PAY THEIR RENT AND FEED THEIR FAMILIES WITH THE INCOME THAT THEY EARN FROM THIS PROGRAM. SO WHAT IS THE CONNECTION BETWEEN THESE TWO? WELL, I DIDN'T REALLY THINK ABOUT IT UNTIL I HEARD ONE COUNCIL MEMBER SAY ABOUT THE GAS PLANT. WE NEED THIS GAS. WE NEED TO MOVE FORWARD WITH THIS NOW. WE NEED TO SEIZE THE OPPORTUNITY. WE CAN'T MISS THIS OPPORTUNITY. IT DOESN'T MATTER IF IT'S 300MW, 600MW. WE NEED TO SEIZE THIS OPPORTUNITY. WHAT OPPORTUNITY? I WONDERED, BECAUSE, YOU KNOW, OUR OWN OWN HEAD OF DME ADMITTED, YOU KNOW THAT THERE IS NO PARTICULAR, YOU KNOW, SALE, NO PARTICULAR GAS PLANT. THE CITY HAS IN MIND PUTTING TOGETHER EVERYTHING I HEARD IN THE WORK SESSION TODAY, I CAN'T HELP BUT THINK THAT THIS IS BECAUSE OF THE OF BOND RATINGS, BOND RATINGS AND MONEY, AND SEIZING THE OPPORTUNITY TO TAKE OUT BONDS AS QUICKLY AS Y'ALL CAN FOR TREMENDOUS AMOUNT OF MONEY. HUNDREDS OF MILLIONS AT THE CURRENT RELATIVELY LOW BOND INTEREST BEFORE THEY GET RAISED, WHICH THEY WILL, BECAUSE OUR BOND RATING IS TANKING. SO THE VICTIMS OF THIS ARE CHILDREN. THE VICTIMS OF THIS FINANCIAL DECISION ARE CHILDREN WHO ARE LOSING AN AFFORDABLE AFTER SCHOOL PROGRAM, AND THEY ARE HAVING THEY'RE ALREADY F RATED AIR QUALITY IMPACTED BY WHAT WE'RE CONTRIBUTING TO CLIMATE CHANGE. THAT'S APPALLING. 
          >> THANK YOU. NEXT SPEAKER IS LORI HARRIER. I DON'T KNOW IF I SAID THAT RIGHT. IF YOU CAN GIVE 
          YOUR NAME, YOU HAVE FOUR MINUTES. >> YES. MY NAME IS DOCTOR LORI HARRIER. OKAY. ALL RIGHT. GOOD EVENING. MAYOR, COUNCIL MEMBERS AND FELLOW RESIDENTS THAT ARE HERE THIS EVENING. MY NAME IS DOCTOR LORI HARRIER AND I REPRESENT UNITED THROUGH HOPE, A NONPROFIT ORGANIZATION BASED RIGHT HERE IN DENTON, TEXAS. FOR OVER 13 YEARS, WE'VE WORKED WITH INDIVIDUALS WHO OFTEN FEEL LEFT OUT OF THE MAINSTREAM, THOSE LIVING WITH DISABILITIES AND SOCIAL CHALLENGES, INCLUDING AUTISM SPECTRUM DISORDERS. AND WE HAVE HELPED THEM FIND COMMUNITY, PURPOSE AND CONFIDENCE THROUGH INCLUSIVE PROGRAMS AND MEANINGFUL SOCIAL ENGAGEMENT. BUT RIGHT NOW, OUR WORK IS AT A STANDSTILL, AND NOT BECAUSE WE'RE SHORT ON COMMITMENT. NO, IT'S BECAUSE WE'RE OVERWHELMED BY DAMAGE THAT COULD HAVE BEEN PREVENTED WHEN THE RECENT FLOOD HIT DENTON ON JUNE 3RD, 2025, OUR BUILDING WAS INUNDATED. IT'S NOW COMPLETELY 
          [04:05:03]
OUT OF COMMISSION. NOT ONLY DO WE LOSE ACCESS TO THE PHYSICAL SPACE WHERE WE HOST VITAL PROGRAMING, BUT THE TIMELINE FOR EVEN BEGINNING REPAIRS IS AT LEAST A MONTH AWAY. EVERY DAY THAT GOES BY WITHOUT THAT SPACE IS A DAY OUR MEMBERS LOSE ACCESS TO ESSENTIAL SOCIAL SUPPORTS WITHIN YOUR COMMUNITY. AND IT GETS WORSE. THE FLOOD ALSO TOTALED THE ONLY TWO VEHICLES WE USED TO TRANSPORT OUR MEMBERS TO AND FROM THE EVENTS. THESE VEHICLES ARE NOT LUXURIES. 
          INSTEAD, THEY ARE, FOR MANY OF OUR PARTICIPANTS, THE ONLY RIDES AND THEIR ONLY WAY TO ACCESS COMMUNITY FRIENDSHIPS AND A SAFE ENVIRONMENT OUTSIDE THEIR HOMES. WITHOUT THOSE VEHICLES, WE ARE CUT OFF AND SO ARE THEY. EVEN AS WE SCRAMBLE TO ASSESS THE DAMAGE AND RECOVER, WE'RE STILL BEING ASKED TO PAY $1,800 EVERY MONTH ON A LOAN FOR BUILDING WE CAN NO LONGER USE. THAT'S MONEY WE DON'T HAVE WHILE OUR COMMUNITY, YOUR COMMUNITY OF DENTON, TEXAS, GOES UNDERSERVED. THIS WASN'T A FREAK EVENT. IT'S THE RESULT OF LONG STANDING INFRASTRUCTURE VULNERABILITIES THAT HAVE NOT BEEN KEEPING PACE WITH THE CITY'S GROWTH OR WITH CLIMATE REALITY. OUR BUILDING IS LOCATED IN AN AREA WITH POOR DRAINAGE, SOMETHING WE'VE RAISED CONCERNS ABOUT BEFORE, AND NUMEROUS OTHER PEOPLE HAVE COME BEFORE YOU AND SAID THE SAME THINGS. THE FLOOD WAS THE CONSEQUENCE OF YOUR INACTION. INACTION AFTER THE FLOODS IN 2007, 2015, 2020 AND NOW THE JUNE 3RD FLOOD ON 2025. 
          WE KNOW INFRASTRUCTURE UPGRADES TAKE TIME, BUT WHAT WE'RE ASKING FOR TONIGHT IS RECOGNITION, RESPONSIVENESS AND A COMMITMENT TO ACTION FROM YOU. SPECIFICALLY, WE URGE THE COUNCIL TO ONE PRIORITIZE INFRASTRUCTURE UPGRADES IN ALL FLOOD PRONE COMMUNITY SERVICE ZONES, ESPECIALLY WHERE NONPROFITS AND VULNERABLE POPULATIONS OPERATE. WE WERE NOT THE ONLY BUSINESS OR HOME INUNDATED BY THESE FLOODS. NUMEROUS PEOPLE ARE OUTSIDE OF THEIR HOMES NOW. NUMBER TWO, PROVIDE TRANSPARENT TIMELINES AND PUBLIC UPDATES ON WHAT'S BEING DONE AND WHEN IN ORDER,ANM HAPPENING AGAIN. NUMBER THREE, CREATE EMERGENCY RELIEF RESOURCES FOR NONPROFITS AND PEOPLE AFFECTED BY THESE FLOODS SO THAT PEOPLE LIKE UNITED THROUGH HOPE THAT ARE ON THE FRONT LINES BUT ARE OFTEN OVERLOOKED IN DISASTER RESPONSE, ARE STILL BEING RECOGNIZED. NUMBER FOUR INCLUDE NONPROFITS AND PEOPLE IN THESE POOR DRAINAGE AREAS WITHIN YOUR PLANNING CONVERSATIONS. BECAUSE WE'RE NOT JUST SERVICE SERVICE PROVIDERS OR JUST PEOPLE, WE ARE COMMUNITY ANCHORS AND STAKEHOLDERS. WE ARE NOT ASKING FOR SPECIAL TREATMENT. WE'RE ASKING FOR ACKNOWLEDGMENT OF OUR ROLE IN HELPING THE PEOPLE WHO ARE OFTEN LAST TO BE CONSIDERED AND FIRST TO BE AFFECTED. WHEN CRISIS STRIKES, UNITED THROUGH HOPE WILL CONTINUE TO FIGHT FOR OUR MEMBERS, BUT WE CANNOT DO IT ALONE. WE NEED YOU TO STAND WITH US, PLEASE. NOT JUST IN WORDS, BUT IN ACTION AND IN PLANNING. THANK YOU FOR YOUR TIME. 
          >> THANK YOU. OKAY, THE NEXT SPEAKER IS. MAX GARRETT. IF YOU CAN GIVE YOUR NAME AND 
          JUST TO. >> LORI CARR, FOLLOWED. >> CONNECT WITH YOU. OKAY. IF 
          YOU CAN GIVE YOUR NAME, YOU HAVE FOUR MINUTES. >> MAX GARRETT. 
          >> I AM CURRENTLY WORKING AS A SUPERVISOR AT A SUMMER CAMP PROVIDED BY DENTON. I'M HERE TALKING TODAY ABOUT THE DISCONTINUATION OF THE AFTER SCHOOL PROGRAM I DID WORK AT OVER THE COURSE OF THIS LAST YEAR. I STARTED LAST SUMMER AND MY POSITION, AND I'D LIKE TO SAY, FIRST AND FOREMOST, I BELIEVE THAT THE CITY OF DENTON, OR ANY FORM OF GOVERNMENT HAS A RESPONSIBILITY TO PROVIDE SERVICES AND OPPORTUNITIES, SERVICES FOR OUR PATRONS, OPPORTUNITIES FOR OUR CITIZENS, OUR CONSTITUENTS, ETC. THE AFTER SCHOOL PROGRAM IS, AS FAR AS I HAVE SEEN, ESSENTIAL. MOST OF MY COWORKERS ARE RETURNERS. THEY'VE BEEN AT THE PROGRAM, I THINK. I HAVEN'T MET ANYBODY WHO STARTED WHEN I DID. ACTUALLY, EVERYBODY STARTED THE YEAR BEFORE OR LONGER. PART TIME. YES, IT IS PART TIME, BUT AS DEMANDING AS IT IS, THERE ARE OFTEN OPPORTUNITIES TO STAY AFTER WE DO POP UP JOBS, FESTIVALS FIVE WHATEVER THE CITY NEEDS, WE ARE 
          [04:10:09]
MEANT TO CATCH THE BALL ON THAT. IT'S NOT JUST AFTER SCHOOL THAT'S NOT OBVIOUSLY SUSTAINABLE FOR AS MANY PEOPLE, AND FULL TIME SUMMER IS QUITE A DEMANDING JOB AS ANY CHILD CARE IS. WE ALSO HAVE THE FULL. WEIGHT OF ANY CHILD CARE JOB BEHIND US. WE ARE STILL REQUIRED TO HAVE A CPR CERTIFICATION. WE ARE STILL MANDATED REPORTERS. THAT'S SOMETHING I'VE HAD TO DO. 
          ACTUALLY, LAST WEEK. CHILD CARE JOBS ARE NOT OPTIONAL IN ANY SOCIETY. WHEN I HEARD ABOUT POTENTIALLY CLOSING THE PROGRAM, I HEARD FROM A COWORKER WHO HEARD FROM A COWORKER WHO HEARD FROM A COWORKER. UNFORTUNATELY, THE CITY AS FAR AS I HAVE SEEN, WAS NOT UPFRONT ABOUT THESE CHANGES, NOT TRANSPARENT IN ANY WAY, AND WEREN'T EVEN ABLE TO INFORM THE PEOPLE THAT WE SERVICE. THE PEOPLE WHO PAY HUNDREDS OF DOLLARS A WEEK A MONTH FOR THEIR CHILD CARE. WHEN SPEAKING WITH THOSE THOSE SAME PARENTS, I WASN'T ABLE TO COME TO A CONCLUSION ABOUT WHAT ALTERNATIVES THEY HAVE. EITHER THE COST IS HIGHER OR IT'S TOO FAR, OR THEIR KID ISN'T ABLE TO BE ACCEPTED FOR VARIOUS REASONS, BEHAVIORAL ISSUES, ETC. OUR PARENTS ARE STRUGGLING WITH A LOT OF CHALLENGES THESE DAYS AND PROVIDING AS MANY OPTIONS AS WE POSSIBLY CAN IS. OUR WAY OF SUPPORTING OUR OWN COMMUNITY. WE SUPPORT. WE AS WORKERS, OUR TEACHERS, WHERE PART TIMERS, WHERE COLLEGE STUDENTS, ALL KINDS OF PEOPLE COME TO FIND EMPLOYMENT THAT THE CITY PROVIDES AT HONESTLY A VERY LIVABLE WAGE. THIS IS ONE OF THE VERY FEW OPTIONS I'VE SEEN THAT HAS PROVIDED ME THE OPPORTUNITY TO SUPPORT MYSELF AND TO CONTINUE MY EDUCATION. I KNOW THAT A LOT OF MY COWORKERS ARE ALSO GOING THROUGH SCHOOL AT THE MOMENT. THAT'S SOMETHING THAT IS BECOMING INCREASINGLY. DIFFICULT TO COME BY. I KNOW THAT JUST TODAY, I WAS ABLE TO SEE SOME RETURNING STUDENTS FROM MY AFTER SCHOOL. FROM MY PREVIOUS SUMMER, I'VE MET KIDS WHO HAVE BEEN COMING, COMING, COMING FOR FIVE YEARS IN A ROW. THIS PROGRAM, TO MY UNDERSTANDING, IS NOT 
          DISPENSABLE FOR THEM. THANKS SO MUCH. >> THANK YOU. 
          >> APPRECIATE IT. >> THE LAST SPEAKER IS GEORGE FERRY. IF YOU CAN COME DOWN, GIVE YOUR NAME. YOU'LL HAVE FOUR MINUTES. 
          >> OKAY. >> YEAH. IF YOU CAN GIVE YOUR NAME, YOU HAVE FOUR MINUTES. 
          >> THANK YOU. GOOD EVENING. MAYOR, CITY COUNCIL AND FELLOW DENTON RESIDENTS. FIRST, I'D LIKE TO POINT OUT EARLIER TODAY, MAYOR HUDSPETH, YOU ASKED CITY COUNCIL TO NOMINATE A MAYOR PRO TEM WHO LIKES YOU, SAYING THAT YOU DESERVE THIS IN YOUR FINAL YEAR. AND I THINK THAT THAT REALLY SPEAKS TO A DEEP HUMAN NEED TO FEEL SEEN, VALUED AND SUPPORTED. YET JUST HOURS LATER, YOU DECLINED TO SUPPORT A PRIDE MONTH PROCLAMATION DENYING THE SAME DIGNITY TO OUR LGBTQ PLUS NEIGHBORS. THIS IS NOT TO SHAME YOU. IT'S TO POINT OUT THAT WE ALL SEEK ACCEPTANCE AND AFFIRMATION. BUT SHOULDN'T WE ALSO EXTEND IT? SO I ASK YOU, MR. MAYOR, IF YOU HOPE TO BE UPLIFTED, PERHAPS START BY UPLIFTING OTHERS AS A LEADER, AS INCLUSION IS NOT POLITICAL, IT IS HUMAN. NOW TO SPEAK ON THE ISSUE I CAME HERE TO SPEAK ON. MY NAME IS GEORGE FERRY AND I'M SPEAKING TONIGHT IN SUPPORT OF OPPOSITION, IN STRONG OPPOSITION TO THE PROPOSAL TO BUILD A SECOND DECK OR TO INVEST IN A SECOND DECK. IT'S NOT ONLY SHORT SIGHTED, I THINK IT'S AN IRRESPONSIBLE STEP BACKWARD FOR DENTON. WE'RE LIVING IN A TIME WHERE TEXAS IS FACING UNPRECEDENTED ENERGY, ENERGY CHALLENGES, EXPLOSIVE POPULATION GROWTH, SURGING INDUSTRIAL DEMAND AND RECORD BREAKING TEMPERATURES. THE GRID IS UNDER STRAIN, YES, BUT THE SOLUTION IS NOT TO DOUBLE DOWN ON FOSSIL FUELS. IT'S TO MOVE FORWARD WITH SMARTER, MORE SUSTAINABLE STRATEGIES THAT ALIGN WITH OUR CITY'S VALUES, OUR CITY'S ENVIRONMENTAL COMMITMENTS AND OUR CITY'S FISCAL RESPONSIBILITIES. WINTER STORM YURI EXPOSED JUST HOW VULNERABLE OUR ENERGY INFRASTRUCTURE IS, ESPECIALLY OUR NATURAL GAS SUPPLY. POWER PLANTS FAILED, PEOPLE DIED. THE FAILURES WEREN'T CAUSED BY A LACK OF FOSSIL FUELS. THEY WERE CAUSED 
          [04:15:03]
BY OUTDATED INFRASTRUCTURE, POOR WEATHERIZATION, AND A MARKET THAT VALUES CHEAPNESS OVER RELIABILITY. WE DON'T SOLVE THESE ISSUES BY ADDING MORE OF THE SAME FLAWED MODEL. INSTEAD OF BUILDING ANOTHER GAS PLANT THAT WILL SIT IDLE FOR MOST OF THE YEAR, WHY AREN'T WE INVESTING IN MORE MODERN SOLUTIONS LIKE BATTERY BATTERY ENERGY STORAGE SYSTEMS? THESE SYSTEMS STORE POWER WITH RENEWABLE WHEN RENEWABLES ARE ABUNDANT AND DISPATCHABLE WHEN WE NEED IT MOST. THEY'VE ALREADY PROVEN THEIR VALUE DURING RECENT EXTREME HEAT EVENTS, POWERING NEARLY HALF A MILLION HOMES WHEN THE GRID WAS PUSHED TO THE EDGE. TEXAS HAS ALREADY SEEN A 66 FOLD INCREASE IN BATTERY STORAGE CAPACITY IN THE PAST FOUR YEARS. AND THAT'S NOT JUST A STATISTIC. 
          IT'S A SIGNAL. THE FUTURE IS HERE, AND DENTON SHOULD BE LEADING THE WAY, NOT CLINGING TO THE PAST. LET'S ALSO TALK ABOUT MONEY. THE PROPOSED TEXAS ENERGY FUND WILL ALLOCATE BILLIONS OF TAXPAYER DOLLARS TO SUBSIDIZE OUTDATED NATURAL GAS INFRASTRUCTURE. THAT'S NOT JUST RISKY. IT'S RECKLESS. THESE PLANTS ARE EXPENSIVE TO BUILD, THEY'RE EXPENSIVE TO OPERATE, AND THEY'RE EXPENSIVE TO MAINTAIN. THEIR MARKET SHARE IS SHRINKING AS RENEWABLES BECOME CHEAPER AND MORE EFFICIENT. ADDING A SECOND DECK LOOKS UP LOCKS US INTO A FINANCIALLY UNSTABLE MODEL WHILE PUSHING THE BURDEN OF STRANDED ASSETS ONTO FUTURE GENERATIONS. AND WHAT'S MORE, EXPANDING EXPANDING FOSSIL FUEL INFRASTRUCTURE CONTRADICTS DENTON'S LONG STANDING ENVIRONMENTAL GOALS. OUR COMMUNITY HAS FOUGHT HARD FOR A MORE SUSTAINABLE FUTURE. WE ARE AMONG THE FIRST CITIES IN TEXAS TO COMMIT TO 100% RENEWABLE ENERGY. SO HOW CAN WE JUSTIFY A SECOND METHANE FIRED POWER PLANT WHEN WE KNOW IT WILL ONLY INCREASE LOCAL POLLUTION, CONTRIBUTE TO CLIMATE CHANGE, AND UNDERMINE PUBLIC TRUST? EVEN THE LEGISLATURE RECOGNIZES THE NEED FOR BALANCE. PROPOSALS ARE CIRCULATING TO PROMOTE ENERGY EFFICIENT TRANSMISSION, UPGRADES AND MICROGRIDS, FORWARD THINKING SOLUTIONS THAT DO MORE WITH LESS AND KEEP POWER FLOWING WHEN IT MATTERS MOST. THE SECOND DECK DOESN'T FIT INTO THAT PICTURE. WE ARE TOLD IT IS ABOUT RELIABILITY, BUT RELIABILITY IS BUILT ON DIVERSIFICATION, NOT DUPLICATION. WE DON'T NEED MORE GAS. WE NEED MORE RESILIENCE, FLEXIBILITY AND INNOVATION. SO IN CLOSING, I ASK YOU TO NOT MAKE THE MISTAKE TO LEAD TO MORE BLACKOUTS AND ENVIRONMENTAL HARM. THANK YOU. 
          >> SO THAT WE ONLY ALLOW SEVEN PUBLIC SPEAKERS. >> AND SO WE'RE AT OUR MAX THERE. BUT I WANT TO MAKE SURE STAFF REACHES OUT TO THOSE THAT HAVE CONCERNS. SIMILAR CONCERNS ABOUT THE RAIN. AND SO LAUREN OKAY. SO RAISE YOUR HAND AGAIN. SO STAFF WILL COME THERE AND VISIT YOU AND THEN. I OKAY. PERFECT. THANK YOU ALL FOR SITTING CLOSE TOGETHER. I'LL MAKE IT EASY. AND THEN KRISTEN WAS IT THE SIMILAR ISSUE KRISTEN COX CHRISTOPHER I'M SORRY. AND SO YOU WERE AFTER SCHOOL OKAY. GOT IT. NOTED. THANK YOU VERY MUCH. SORRY ABOUT THAT. BUT THANK YOU ALL FOR BEING HERE. AND STAFF WILL BRING YOU CARDS AND REACH OUT TO YOU. GET AN UNDERSTANDING OF WHAT YOU'RE THAT CONCERN IS. OKAY. GREAT. THANK YOU VERY MUCH. THAT TAKES 
          [4. CONSENT AGENDA]
US TO OUR CONSENT AGENDA. I'LL TAKE A MOTION FOR EVERYTHING BUT ITEM B, WHICH IS PULL FOR INDIVIDUAL VOTE. I'LL TAKE A MOTION REPRESENTATIVE FROM DISTRICT SIX. 
          >> SO MOVED. >> IS THERE A REPRESENTATIVE FROM DISTRICT FIVE? 
          >> SECOND. >> WE HAVE A MOTION AND A SECOND FOR EVERYTHING. BUT FOR ITEM B ON THE CONSENT AGENDA. ANY DISCUSSION? SEEING NONE, LET'S VOTE ON THE SCREEN. AND THAT 
          [B. Consider a nomination/appointment to the City’s Planning & Zoning Commission.]
PASSES 7 TO 0. TAKES US TO ITEM B. THAT'S ID 25084. CONSIDER NOMINATION APPOINTMENT OF THE CITY PLANNING AND ZONING COMMISSION. AND. I'LL JUST I'LL BE SUCCINCT AND SAY THIS INDIVIDUAL IS ELIGIBLE AS QUALIFIED IS CURRENTLY SERVING ON THE BOARD. AND SO I WOULD ASK FOR SUPPORT OF THIS VOTE. THE NOMINEE IS ERICA GARLAND AND I'LL MOVE APPROVAL. IS THERE A 
          SECOND REPRESENTATIVE DISTRICT FOUR MAYOR? >> I'LL SECOND THAT. 
          >> WE HAVE A MOTION AND A SECOND MOTION BY MAYOR HUDSPETH, SECOND BY REPRESENTATIVE FROM DISTRICT FOUR. ANY OTHER DISCUSSION? SEEING NONE. LET'S VOTE ON THE SCREEN. THAT PASSES 4 TO 3 TAKES US TO OUR FIRST. TAKES US TO OUR FIRST PUBLIC HEARING. FIVE A ID 25192 HOLD A PUBLIC HEARING 
          [A. Hold a public hearing inviting citizens to comment on the 2025 Action Plan for the 2023-2027 Consolidated Plan for Housing and Community Development.]
          [04:20:04]
INVITING CITIZENS TO COMMENT ON THE 2025 ACTION PLAN FOR THE 2023 2027 CONSOLIDATED PLAN FOR 
          HOUSING COMMUNITY DEVELOPMENT. >> GOOD AFTERNOON. >> GOOD EVENING. 
          >> MAYOR AND COUNCIL. JESSIE KENT, DIRECTOR OF COMMUNITY SERVICES. I'M HERE TO TALK TO YOU TODAY ABOUT THE 2025 ACTION PLAN FOR HOUSING AND COMMUNITY DEVELOPMENT. I JUST WANT TO POINT OUT THAT TODAY'S ITEM IS A PUBLIC HEARING TO SOLICIT COMMUNITY INPUT AS PART OF THE CITIZEN ENGAGEMENT. THERE IS NO ACTION REQUIRED OF COUNCIL THIS EVENING. 
          >> AND WHY ARE YOU DOING THAT? I'M OPEN THE PUBLIC PUBLIC HEARING SO DON'T FORGET. 
          >> YES, SIR. >> THANK YOU. >> SO AS A RECIPIENT OF CDBG AND HOME FUNDS, THE CITY IS REQUIRED BY THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, OR HUD, TO COMPLETE A CONSOLIDATED PLAN EVERY FIVE YEARS. THE CONSOLIDATED PLAN DESCRIBES COMMUNITY NEEDS, AVAILABLE RESOURCES, FUNDING PRIORITIES, STRATEGIES, AND GOALS FOR THESE FEDERAL FUNDING SOURCES OVER A SPAN OF FIVE YEARS. ANNUALLY, THE CITY IS REQUIRED TO COMPLETE AN ANNUAL PLAN AS PART OF THE CONSOLIDATED PLAN. WE'RE CURRENTLY DEVELOPING THE 20 2025 ACTION PLAN, AND THIS IS PART OF THE CITIZEN ENGAGEMENT. FOR THAT, THERE ARE A NUMBER OF ELIGIBLE ACTIVITIES FOR CDBG AND HOME FUNDS. THE ITEMS THAT WERE SUBMITTED FOR REQUEST AND THAT THE COMMUNITY SERVICES ADVISORY COMMITTEE MADE RECOMMENDATIONS ON INCLUDE PUBLIC FACILITIES AND IMPROVEMENTS, SOCIAL SERVICES, HOUSING PROGRAMS, AND FOR HOME HOMEOWNERSHIP ASSISTANCE AND NEW HOUSING CONSTRUCTION. COUNCIL MEMBER CHESTER YOU HAD ASKED ABOUT ECONOMIC DEVELOPMENT. 
          ECONOMIC DEVELOPMENT IS AN ELIGIBLE USE FOR CDBG FUNDS. THERE HAS NOT BEEN A CDBG PROGRAM FOR ECONOMIC DEVELOPMENT SINCE 2004, BUT WE ARE INTERESTED IN WORKING WITH ECONOMIC DEVELOPMENT AND THE CHAMBER OF COMMERCE TO SEE IF MAYBE THERE'S SOME INTERESTING IDEAS FOR THE NEXT YEAR'S ACTION PLAN. SO THERE WERE A NUMBER OF FUNDING RECOMMENDATIONS FOR CDBG AND HOME. AGAIN, THESE THESE SPAN HUMAN SERVICES HOUSING, PUBLIC FACILITIES AND IMPROVEMENTS AND REPRESENT ABOUT $1.4 MILLION IN FUNDING. THE COMMUNITY ENGAGEMENT FOR THIS INCLUDES A NUMBER OF DIFFERENT WAYS OF OUTREACH. WE CONDUCT AN ONLINE SURVEY. WE CONDUCT TODAY'S PUBLIC HEARING IS IN AN ITEM, AND STAFF REGULARLY PARTICIPATE IN COMMUNITY COALITIONS TO REMAIN AWARE OF COMMUNITY NEEDS AND TO INFORM COMMUNITY PARTNERS OF FUNDING OPPORTUNITIES. THIS WAS PUT IN THE DRC. THERE WAS AN EMAIL SENT TO ENGAGED INDIVIDUALS OR INTERESTED INDIVIDUALS. THERE'S SOME CITY SOCIAL MEDIA POSTS, AND THE CITY'S WEBSITE INCLUDED INFORMATION ABOUT THIS PUBLIC HEARING. FOR THE ACTION PLAN TIMELINE. WE ARE DOING THE JUNE 17TH PUBLIC HEARING. THE COMMENT PERIOD FOR THE ACTION PLAN ENDS ON THE 20TH, AT WHICH POINT WE WILL INCORPORATE THE FEEDBACK AND SUBMIT TO COUNCIL FOR APPROVAL ON JULY 22ND OF THE ACTION PLAN, AND THEN THIS WILL GO INTO EFFECT JUST WITH THE REST OF THE CITY BUDGET IN OCTOBER. THAT I'LL STAND FOR QUESTIONS OR TURN BACK OVER TO YOU, MAYOR. 
          >> THANK YOU. REPRESENTATIVE FROM DISTRICT SIX. >> HI, COUNCILPERSON. JESTER, THANK YOU FOR THE PRESENTATION. I DON'T KNOW IF YOU HAVE THIS INFORMATION, BUT I WAS WONDERING WHAT KIND OF REPORTING IS DUE WHEN WE USE THESE TYPES OF FEDERAL FUNDS AS FAR AS WHAT THE MONEY IS SPENT ON, FOR EXAMPLE, THE CDBG FUNDS, DO WE HAVE TO ACCOUNT? I KNOW THERE ARE CERTAIN FUNDING MECHANISMS THAT IT HAS TO BE SPENT ON THINGS AS OPPOSED TO SALARIES. WHAT CAN YOU TELL ME ABOUT WHAT ARE THE REPORTING REQUIREMENTS? AND WHEN WE APPROVE THIS, YOU KNOW, CAN THEY USE THE MONEY AT THEIR DISCRETION OR IS IT EARMARKED FOR CERTAIN ITEMS PLEASE. AND 
          THANK YOU. >> YES. COUNCIL MEMBERS. SO THE WHEN THE ORGANIZATIONS SUBMIT PROPOSALS, THEY GIVE A KIND OF AN ACCOUNTING OF HOW THEY INTEND TO USE THE FUND. THERE ARE RULES. THERE ARE CITY RULES FOR KIND OF PRACTICES THAT WE PUT IN PLACE. FOR EXAMPLE, WE DON'T USE WE DON'T PAY FOR FRINGE WITH CDBG FUNDING. THE FEDERAL GOVERNMENT, AS IT OFTEN DOES, HAS EXTENSIVE RULES AND GUIDELINES FOR HOW THESE THINGS ARE FUNDED. AND THERE ARE REGULAR REPORTING UPDATES ON CDBG FUNDS AND HOME FUNDS AS PART OF A IT'S AN ANNUAL REPORTING PERIOD THAT WE HAVE AND HAVE TO GIVE AN UPDATE ON ALL OF OUR PROJECTS. THERE IS SO THERE IS THERE IS EXTENSIVE REPORTING, THERE ARE REQUIREMENTS. AND AS FAR AS KIND OF FOR SALARIES AND THINGS LIKE THAT FOR CDBG, I THINK MAYBE WHAT YOU THINK ABOUT IS PROGRAMING SERVICES. AND SO PEOPLE THAT DO KIND OF COMMUNITY SUPPORT ACTIVITIES, SOCIAL SERVICES, AND THOSE ARE CAPPED AT 15% OF OUR CDBG ALLOCATION EACH YEAR. CDBG IS REALLY INTENDED TO BE ADDRESSING KIND OF PHYSICAL INFRASTRUCTURE IN THE COMMUNITY, AND NOT AS A 
          PRIMARY FUNDING SOURCE FOR SOCIAL SERVICES. OKAY. >> AND ARE WE RESPONSIBLE FOR DO 
          [04:25:06]
WE RECEIVE THAT INFORMATION FROM THE. I'M JUST GOING TO CALL THEM VENDORS, FOR LACK OF A BETTER WORD. DOES THAT COME TO US THEN TO REPORT THAT BACK TO THE FEDERAL GOVERNMENT, OR IS THAT 
          SOMETHING THAT THEY DO DIRECTLY, AND DO WE HAVE ANY LIABILITY? >> YES, MA'AM. SO WE RECEIVE REPORTING FROM WE HAVE REPORTING REQUIREMENTS OF OUR, OUR CONTRACTOR AWARDEES RATHER. 
          >> THAT'S A BETTER WORD. >> THEY THEY REPORT BACK TO US, WE REPORT TO THE FEDERAL GOVERNMENT. WE ARE EXPECTED TO ENSURE THEY ARE SPENDING THE FUNDS APPROPRIATELY WITH 24 CFR, WHICH IS THE CDBG REGULATIONS AND WITHIN OUR OWN CONTRACTS. IF THEY WERE NOT TO BE SPENDING THE FUNDING APPROPRIATELY, WE WOULD BE REQUIRED TO RECOVER THOSE FUNDS FROM THEM OR THE FEDERAL 
          GOVERNMENT WOULD RECOVER THEM FROM US. >> AND THAT'S YOUR DEPARTMENT THAT ENSURES AS FAR AS WHAT RECEIPTS ARE PROVIDED, OR SOME KIND OF EVIDENCE OF HOW THEY'RE 
          BEING USED. >> YES, MA'AM. THE COMMUNITY SERVICES DEPARTMENT HAS A TEAM OF THREE STAFF MEMBERS. EXCUSE ME, FOUR STAFF MEMBERS THAT RUN THE CDBG AND HOME PROGRAMS FOR THE CITY, AND THEY DO ALL THE MONITORING AND REPORTING REQUIREMENTS. 
          >> OKAY. WELL, THANK YOU SO MUCH FOR THAT INFORMATION. AND I'LL GET WITH YOU OFFLINE ON A COUPLE OF OTHER QUESTIONS, BUT I THINK WE CAN WE CAN MOVE ON. THANK YOU SO MUCH. APPRECIATE IT. 
          >> REPRESENTATIVE FROM DISTRICT TWO. >> THE I WAS A LITTLE UNCLEAR. 
          OH SORRY I. >> APOLOGIZE I WAS A LITTLE UNCLEAR ON THE SPAN ON THE FUNDING TABLE. IS THEIR OVERALL REQUEST GOING TO BE DIMINISHED OR THE DIFFERENCE BETWEEN THE CDBG FUNDS AND THE GENERAL FUND COMBINED IS GOING TO KEEP THEM WHOLE. 
          >> SO BECAUSE THIS IS A PUBLIC HEARING ABOUT THE ACTION PLAN, SPECIFICALLY, WE WANTED TO KEEP IT FOCUSED ON CDBG AND HOME FUNDING. BUT OTHER ORGANIZATIONS, INCLUDING SPAN, DO RECEIVE A MIX OF GENERAL FUND DOLLARS AND CDBG FUNDING TO BE MADE WHOLE. 
          >> SO THE SHORT ANSWER IS THEY'RE GOING TO BE WHOLE TO THEIR THEIR NEED, AT LEAST FROM 
          THOSE TWO FUNDING SOURCES. >> I'LL DOUBLE CHECK BUT I BELIEVE. 
          >> SO OKAY. ALL RIGHT I APPRECIATE THAT. THANK YOU. YEAH. IF THAT'S NOT THE CASE JUST PLEASE LET COUNCIL KNOW AND THEN. SORT OF FOLLOW UP YOU WERE DISCUSSING WITH. COUNCILOR JESTER. CAN SOME YOU WERE LOOKING INTO POSSIBLY ENCOURAGING SOME ECONOMIC DEVELOPMENT OPPORTUNITIES. DO YOU. IN ADDITION I THINK AS I REMEMBER THE CATEGORIES LET ME CHECK THE SLIDE. BUT IT'S LIKE YOU'RE ALSO ABLE TO DO HISTORIC PRESERVATION. DO WE HAVE ANY PLANS IN MIND? ECONOMIC DEVELOPMENT IS EASY TO DOVETAIL. DO YOU HAVE ANY PLANS IN MIND ABOUT WHAT WHERE YOU MIGHT GO WITH HISTORIC PRESERVATION, IF THAT'S AN UNDERREPRESENTED 
          CATEGORY. >> SO I CAN'T SPEAK TO I CAN LOOK UP KIND OF WHAT THE HISTORICAL FUNDING HAS BEEN ON HISTORICAL PRESERVATION. I DON'T THINK IT'S SOMETHING THAT WE FUND OFTEN, OR THAT WE'VE HAD MANY REQUESTS FOR FUNDING FOR. SOMETHING I WOULD LIKE TO DO IS TRY AND ENCOURAGE TO RAISE AWARENESS ABOUT THESE PROGRAMS, RAISE AWARENESS ABOUT THESE FUNDS AND GET MORE APPLICATIONS AND GET MORE PEOPLE WHO ARE LOOKING TO ACCESS THESE FUNDS SO THAT THE COMMUNITY SERVICES ADVISORY COMMITTEE, YOUR APPOINTEES, CAN HAVE A BETTER 
          KIND OF SELECTION TO MEET THE COMMUNITY NEEDS. >> OKAY. AND HAVE YOU HAPPENED? AND THIS MAY BE TOO EARLY IN THE PROCESS, BUT DO YOU HAPPEN TO KNOW WHAT OTHER OTHER CITIES REGIONALLY USE? WHAT'S THE TYPICAL KIND OF PROJECT? I MEAN, I THINK WE PROBABLY DON'T NEED TO GO INTO THAT ON ECONOMIC DEVELOPMENT. THOSE ARE THOSE ARE JUST GOING TO BE GENERAL, YOU KNOW, BUSINESS PROMOTING ONES. BUT IN GENERAL, EVEN FOR THAT, I'D BE INTERESTED IN MAYBE AT SOME FUTURE POINT COMING BACK TO COUNCIL WITH SOME SOME EXAMPLES, SOME EXEMPLARS, SOME SOME TYPICAL THINGS THAT THESE ARE USED FOR THAT YOU MIGHT BE TARGETING SO THAT WE DON'T LEAVE MONEY ON THE TABLE OR HAVE TO HAVE ONE OF THESE BUDGET RECONCILIATIONS LATER. 
          >> YES, SIR. SO THE I CAN ACTUALLY I HAVE A REPORT FROM THE CDBG. I THINK IT'S THE CDBG COALITION THAT THEY HIGHLIGHT PROJECTS AND PROGRAMS FROM ACROSS THE COUNTRY THAT HAVE BEEN DONE WITH CDBG, AND I'D BE HAPPY TO SHARE THAT. THAT'D BE COUNCIL PERFECT. 
          >> THANK YOU I APPRECIATE THAT. THANK YOU. JESSE. >> YES, SIR. 
          >> ANY OTHER QUESTIONS FOR STAFF? THIS IS A PUBLIC HEARING. YOU CAN COME DOWN AND SPEAK AND FILL OUT A CARD AFTER THE FACT. SEEING NONE, I'LL CLOSE THE PUBLIC HEARING. I'LL SAY THAT THERE'S THREE CARDS FILLED OUT. THERE'S GEORGE PERRY, CLINTON FERRY AND AMANDA CONWAY THAT ALL FILLED OUT CARDS IN SUPPORT. AND WITH THAT, I. YEAH. CLOSE IT. WE'RE GOOD. I WOULD JUST SAY THIS, JESSIE STANDPOINT OF YOUR YOUR WORK. I KNOW YOU DIGITIZE THE SHELTER. I'M EXPECTING YOU TO WRITE SOME KIND OF PROGRAM. IT'S ONLY FAIR THAT EVERY DEPARTMENT YOU GO TO, YOU WRITE A PROGRAM OR DO SOMETHING, OR ELSE I'M GOING TO FEEL LIKE YOU. YOU LIKE THE PETS BETTER THAN YOU LIKE US. SO I'LL WAIT FOR YOU TO COME BACK WITH WHATEVER NEW FANDANGLED SCANNER OR 
          [04:30:02]
WHATEVER YOU COME UP WITH. YOU KNOW, I'LL LEAVE IT TO YOU TO BE CREATIVE. 
          >> WE'VE GOT SOME COOL STUFF ON HOMELESSNESS. >> EXCELLENT. THANK YOU VERY MUCH. I APPRECIATE IT IF YOU AND EVERYONE THAT WORKS ON THAT TEAM. THANK YOU VERY MUCH. OKAY. 
          NO, THAT TAKES US TO ITEM B I'M PA240003. HOLD A PUBLIC HEARING. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS REGARDING A CITY INITIATED COMPREHENSIVE PLAN. OH, OH, THAT ONE'S BEEN WITHDRAWN. SORRY. ITEM B IS. I FORGOT ABOUT THAT. I MARKED UP MY COPY, SO WE'RE 
          [C. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a City-initiated Comprehensive Plan Amendment to modify the Thoroughfare Map of the 2022 Mobility Plan, including but not limited to removing and realigning a proposed extension of Underwood Road between FM 1515 (Airport Road) and Springside Road, removing an east-west extension of future Corbin Road from Springside Road to existing north-south Corbin Road, and reclassifying portions of Corbin Road and Springside Road. The general area of change is located east of the City of Denton Airport, and west of I-35 W in the City of Denton, Denton County, Texas; adopting an amendment to the City’s official mobility plan; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. The Planning and Zoning Commission voted 4-0 to recommend approval of the request. Motion for approval by Commissioner Dyer and seconded by Commissioner McDuff. (MPA25- 0001b, Underwood, Corbin, and Springside, Sahar Esfandyari).]
NOT GOING TO TAKE THAT ONE UP. SO THAT TAKES US TO ITEM C MP A250001. HOLD A PUBLIC HEARING AND CONSIDER ADOPTION OF ORDINANCE OF THE CITY OF DENTON, TEXAS REGARDING A CITY INITIATED COMPREHENSIVE PLAN AMENDMENT TO MODIFY THE THOROUGHFARE MAP OF THE 2022 MOBILITY PLAN, AND I'LL 
          OPEN THE PUBLIC HEARING. >> GOOD EVENING, MAYOR AND COUNCIL MEMBERS. MY NAME IS SAHAR ESFANDIARI, SENIOR TRANSPORTATION PLANNER, DEVELOPMENT SERVICES. TONIGHT, I'D LIKE TO DISCUSS A MOBILITY PLAN AMENDMENT FOR UNDERWOOD, CORBIN AND SPRINGSIDE ROADS. 
          THIS MOBILITY PLAN AMENDMENT HAS FOUR SECTIONS. THE REASON THAT I HAVE ALL THESE PROPOSALS UNDER ONE AMENDMENT IS THAT THEY ARE ALL LOCATED IN A VERY CLOSE DISTANCE OF EACH OTHER. AS YOU CAN SEE IN THIS MAP, THE FIRST REQUEST IS FOR UNDERWOOD ROAD AND IS ABOUT REMOVING THE NORTHERN EXTENSION OF FUTURE UNDERWOOD ROAD BETWEEN AIRPORT ROAD AND SPRINGSIDE. THE SECOND REQUEST IS TO REMOVE THE WESTERN EXTENSION OF EAST WEST CORBIN ROAD BETWEEN CORBIN ROAD AND SPRINGSIDE. THE THIRD ONE IS TO EXTEND THE. THE ROADWAY CLASSIFICATION OF NORTH SOUTH CORBIN ROAD, AND THE FOURTH ONE IS TO UNIFYING THE ROADWAY CLASSIFICATION OF A SPRING SITE. 
          I AM GOING TO EXPLAIN EACH OF THEM ONE BY ONE IN NEXT SLIDES. FIRST UNDERWOOD ROAD THE EXISTING UNDERWOOD ROAD LOCATED BETWEEN SPRINGSIDE AT NORTH AND GOES SOUTH TO FM 2449 TO THE SOUTH. ACCORDING TO THE MOBILITY PLAN. THE NORTH SECTION NORTHERN SECTION OF UNDERWOOD WILL BE EXTENDED TO REACH OUT TO AIRPORT ROAD OR FM 1515. THE. THE TARGET PORTION OF UNDERWOOD IS LOCATED INSIDE THIS ORANGE LOOP. STAFF RECOMMENDS TO REMOVE THIS PORTION OF FUTURE UNDERWOOD ROAD BECAUSE OF THE FOLLOWING REASONS. FIRST, AS YOU CAN SEE ON THE MAP TO THE LEFT AND UP, THESE PARTIAL PORTION OF UNDERWOOD ROAD, LOCATED INSIDE A RIPARIAN BUFFER IN ORDER TO PREVENT ANY ADVERSE ENVIRONMENTAL IMPACT AND DISTURBING THE BOTTOMLAND HARDWOOD AND LOCAL WILDLIFE LIFE, STAFF RECOMMENDS TO REMOVE THIS PORTION OF ROAD. ALSO, AS YOU CAN SEE, THIS ROAD LOCATED BETWEEN CORBIN AND VICKERY ROAD. SO IN THE ABSENCE OF THIS PORTION OF UNDERWOOD ROAD, THERE WILL BE ENOUGH ROAD CAPACITY TO TAKE CARE OF THE TRAFFIC FLOW IN THE AREA. THE MAP ON THE LEFT AND BOTTOM OF THE PAGE SHOWS THE FUTURE CONFIGURATION OF UNDERWOOD ROAD, SO UNDERWOOD ROAD AT THE SPRING SIDE WILL BE REALIGNED TO CONNECT TO THE WEST COURT. THE SECOND REQUEST IS FOR EAST WEST CORBIN ROAD, THE TARGET PORTION OF OUR STUDY IS LOCATED IN THIS ORANGE LOOP. AS YOU CAN SEE, THIS FUTURE EXTENSION OF EAST WEST CORBIN ROAD CROSSES THREE PROPERTIES. AFTER A DETAILED STUDY STAFF RECOMMENDS TO REMOVE THIS PORTION OF EXTENSION OF CORBIN ROAD TO AVOID DISTURBING THE SURROUNDING PROPERTIES. ALSO, IN THE ABSENCE OF THIS PORTION OF THE ROAD, THERE WILL BE ENOUGH ROAD CAPACITY THROUGH CORBIN ROAD AND SPRINGSIDE TO TAKE CARE OF THE TRAFFIC FLOW IN THE AREA. THE THIRD REQUEST IS FOR CORBIN ROAD NORTH SOUTH CORBIN ROAD. CURRENTLY, THE EXISTING CORBIN ROAD IS BETWEEN AIRPORT ROAD AND GOES DOWN TO EAST WEST CORBIN ROAD. ACCORDING TO THE MOBILITY PLAN, ONLY THE SECTION FROM AIRPORT TO SPRINGSIDE IS IDENTIFIED AS A COLLECTOR. STAFF RECOMMENDS TO EXTEND THIS ROADWAY CLASSIFICATION TO MATCH AND CONNECT TO CORBIN ROAD IN ORDER TO PROVIDE BETTER ACCESSIBILITY AND IMPROVE CONNECTIVITY FOR ALL LAND USES AND RESIDENTS IN THE AREA. THE FOURTH REQUEST IS TO UNIFYING THE SPRINGSIDE ROAD, THE ROADWAY CLASSIFICATION OF SPRINGSIDE 
          [04:35:07]
ROAD. AS YOU CAN SEE IN THIS MAP, THE SPRINGSIDE ROAD, LOCATED BETWEEN CORBIN AND WESTCOURT, THE WESTERN PORTION OF SPRINGSIDE, HAS BEEN IDENTIFIED AS A SECONDARY ARTERIAL, WHILE THE EASTERN SECTION IS IDENTIFIED AS A COLLECTOR. IF YOU COMPARE A LITTLE BIT OF COMPARISON BETWEEN THESE TWO ROAD TYPES, AS A COLLECTOR, WE ARE REFERRING TO THE ROAD WHICH HAS THE RIGHT OF WAY OF 65FT OF RIGHT OF WAY, AND A SPEED LIMIT BETWEEN 30 TO 35MPH, WHEREAS THE SECONDARY ARTERIAL IS. THERE IS 110FT OF TOTAL RIGHT OF WAY, AND A SPEED LIMIT BETWEEN 35 AND 40MPH. SO STAFF RECOMMENDS TO UNIFY THIS ROADWAY CLASSIFICATION AS A COLLECTOR, ESPECIALLY BECAUSE THE LAND USE IN THE AREA IS MIXED OF RURAL RESIDENTIAL AND INDUSTRIAL USE. SO BY LOWERING THE CLASSIFICATION AND KEEP IT AS A COLLECTOR, WE ARE GOING TO MAKE SURE THAT ALL ROAD USERS, ESPECIALLY THE VEHICLES, THE PASSENGER VEHICLES AND ALSO THE HEAVY TRUCKS, COMMERCIAL TRUCKS, BECAUSE THEY ARE ALL GOING TO USE THESE ROADS, THEY CAN MAKE A SAFER ROAD FOR EVERYONE WHO USE THIS ROAD. THE MAP ON THE RIGHT SHOWS THE FINAL CONFIGURATION OF THE ROADS IN THIS AREA. THESE PROPOSALS MEET THE CRITERIA FOR APPROVAL, ESPECIALLY REGARDING TO THE COMPREHENSIVE PLAN, FUTURE LAND USE AND MOBILITY PLAN. WE HAVE DONE THE PUBLIC OUTREACH REQUIREMENT FOR THIS REQUEST, AND WE HAD A PUBLIC MEETING ON MAY 7TH. WE HAVE RECEIVED ONE LETTER IN FAVOR OF THIS REQUEST. WE HAD A MEETING WITH PLANNING AND ZONING COMMISSION LAST WEEK, AND THEY RECOMMEND APPROVAL OF THIS PROPOSAL. THE STAFF ALSO RECOMMEND APPROVAL OF THE PROPOSAL AS IT COMPLIES WITH THE CRITERIA IN SECTION 271D OF THE 
          DDC. THANK YOU. >> THANK YOU QUESTIONS FOR STAFF REPRESENTATIVE FROM DISTRICT 
          TWO. >> THANK YOU. SO I, I GIVEN THE PROPOSAL, BUT ALSO GIVEN THE NORTH SOUTH CORBIN'S ROAD CLOSURE AND BARRIERS AND SORT OF INACTIVITY DUE TO FLOODING. YOU KNOW IT'S BEEN DISABLED, AS IT WERE. DO WE EXPECT THAT THERE'S GOING TO BE SIGNIFICANT RENOVATIONS ASSOCIATED WITH MODIFYING IT TO MATCH THE CROSSING OF THE CREEK RIGHT THERE? I MEAN, YOU KNOW, THERE'S THERE TO GET AROUND. THOSE FLOODING PROBLEMS WILL REQUIRE SIGNIFICANT RENOVATION OF THAT SEGMENT. AND I GUESS WHERE I'M AT, WHAT I'M ASKING IS IF WE'RE ADJUSTING MOBILITY PLAN TO KIND OF REGULARIZE OUR HOW WE INTEND THE FUTURE OF THIS SEGMENT TO BE, WHAT ARE WE SETTING OURSELVES UP FOR IN TERMS OF RENOVATIONS NECESSARY TO RETURN THIS TO THE TO THE MOBILITY PLANS CONCEPT? AND I'M NOT ASKING FOR LIKE EXACT DOLLAR FIGURES BECAUSE WE HAVEN'T PLANNED ANY CAPITAL PROJECTS OR ANYTHING. I'M JUST SORT OF LIKE WHAT? WHAT KIND OF RENOVATIONS DO WE NEED? AND, AND YOU KNOW, IN, IN PHILOSOPHICALLY FROM A 10,000 FOOT VIEW KIND OF WHAT ARE WE SETTING OURSELVES UP FOR TO, FOR THIS FOR THIS CHANGE IN 
          THE MOBILITY PLAN? >> FOR THIS QUESTION, I PREFER TO LET MY COLLEAGUE CHANDRA, THE 
          CITY TRAFFIC ENGINEER, TO ANSWER THIS QUESTION. >> GOOD EVENING, MAYOR AND COUNCIL. CHANDRA, CITY TRAFFIC ENGINEER. SO WHEN WE MADE THESE CHANGES, WE DID ACCOUNT FOR BUILDING THE NORTH SOUTH BRIDGE THAT WAS CLOSED BACK IN 2010 DUE TO FLOODING ISSUE. WE HAVE ACCOUNTED FOR TO BUILD THE BRIDGE BACK AS DEVELOPMENTS OCCUR. WE WOULD NECESSITATE THE DEVELOPMENT TO BUILD THESE IMPROVEMENTS AS PART OF THE PERIPHERY STREET IMPROVEMENTS. 
          >> SO LET ME JUST REAL BRIEFLY FOLLOW UP. AND I DON'T REALLY HAVE A PROBLEM. I'M GOING TO I'M GOING TO VOTE APPROVAL. BUT I GUESS MY QUESTION IS GOING TO BE. ARE IF WE ESTABLISH THIS AS AN ARTERIAL IN ITS CURRENT CONDITION AS IS, ARE WE GOING TO ALLOW THE KIND OF ARTERIAL OR NOT? SORRY, COLLECTOR, I APOLOGIZE IF WE ESTABLISH THIS AS A COLLECTOR AS IT IS NOW, ARE WE GOING TO ALLOW FOR THE KIND OF DEVELOPMENT THAT A COLLECTOR TYPICALLY HAS, OR ARE WE GOING TO WAIT AND REQUIRE OUR CAPITAL PROJECT TO RETURN IT TO A USEFUL CONDITION BEFORE WE ALLOW SORT OF THE RELATED DEVELOPMENT AROUND ITS EDGES? YOU SEE WHERE I'M GOING WITH THIS? BECAUSE BY PUTTING IT BACK IN PLAY, WE SAY, OH, WELL, WE INTEND TO PUT IT BACK IN PLAY AND DO SOMETHING 
          WITH IT. >> SO ON THE RIGHT AWAY IMPACT FEE STUDIES, THIS SECTIONS OF 
          [04:40:03]
THE ROADWAY HAS ALREADY BEEN ACCOUNTED FOR IN THE CIP PLAN, BUT WE DON'T HAVE THE FUNDING. 
          SO AS THE DEVELOPMENT OCCURS ON THESE LAND, EMPTY LANDS, WE WOULD COLLECT IMPACT FEES THAT 
          COULD BE USED FOR BUILDING OR THE DEVELOPMENT IMPROVES THEM. >> ALL RIGHT. AS A GOOD ANSWER. 
          THANK YOU. CHAIR. >> SURE. >> ANY OTHER QUESTIONS FOR STAFF 
          REPRESENTATIVE FROM DISTRICT FOUR? >> THESE THESE ROADS HAVE NOT 
          BEEN IMPROVED IN FOREVER. >> THAT'S RIGHT OKAY. >> SO THEY'RE NOT SO WE'RE 
          CALLING THEM COLLECTORS BUT THEY'RE HARDLY COLLECTORS. >> IT'S A RURAL TWO LANE VERY NARROW ROAD BASE. SO ANY IMPROVEMENTS WILL HAVE TO BE IMPROVED. THE ROADS HAS TO BE 
          IMPROVED BEFORE THE DEVELOPMENT OCCURS. >> AND IS THERE NOT AN OLD, OLD, 
          OLD, OLD RICKETY IRON BRIDGE OVER THERE? >> I THINK BASED ON OUR FIELD INSPECTIONS, IT'S BEEN WASHED, AT LEAST ON THE CARBON SECTION ON THE NORTH SOUTH. 
          >> IS IT CORBIN? I COULDN'T, I COULDN'T REMEMBER FOR SURE. YES, BUT IS THAT DOES THAT STILL 
          EXIST? >> IT'S BEEN WASHED OUT, BUT WE COULDN'T REACH SO CLOSE TO TAKE 
          THE IMPACT FULLY. >> SO WOULD WOULD THAT ULTIMATELY BE REPLACED? 
          >> YES, IT WILL. >> BE OKAY. OKAY. THANK YOU. WELL. 
          >> ANY OTHER QUESTIONS FOR STAFF. AND JUST TO MAKE SURE I UNDERSTAND THIS IS YOU SET KIND OF THESE PARAMETERS SO THAT AS PEOPLE COME IN AND DEVELOP THEY UNDERSTAND YOU SET BASICALLY THE FEES. SO WE GOT TO SAY WHAT WE ANTICIPATE SO THAT IT SETS THE PROPER FEES. THAT'S RIGHT. SO IT'S NOT REALLY WE'RE NOT SAYING WE'RE GOING TO DO THIS. WE'RE SAYING THIS IF YOU'RE GOING TO COME HERE AND THIS AREA AND PARTICIPATE, THIS IS WHAT YOU HAVE TO PARTICIPATE TO THIS LEVEL. THAT'S CORRECT. GREAT. THANK YOU VERY MUCH. OKAY. IT IS A PUBLIC HEARING. YOU CAN COME DOWN AND SPEAK IF YOU WANT AND FILL OUT A CARD AFTER THE FACT. SEEING NONE. I'LL CLOSE THE 
          PUBLIC HEARING AND RECOGNIZE MEMBER FROM DISTRICT SIX. >> DO WE NEED A MOTION ON THIS SINCE IT IS JUST THE PUBLIC HEARING? ALL RIGHT, WELL THEN I MOVE APPROVAL AS PRESENTED. 
          THANK YOU. >> REPRESENTATIVE FROM DISTRICT FOUR. 
          >> SECOND. >> WE HAVE A MOTION AND A SECOND, ANY OTHER DISCUSSION? 
          LET'S VOTE ON THE SCREEN. >> LET'S SEE. >> PASSES SEVEN ZERO TAKES US TO 
          [D. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, regarding a City-initiated Comprehensive Plan Amendment to modify the Thoroughfare Map of the 2022 Mobility Plan, including but not limited to removing a Future Collector between I-35 and Western Boulevard south of West University Drive (US 380). The general area of change is located west of I-35, east of Western Boulevard, south of US 380, and north of Jim Christal Road in the City of Denton, Denton County, Texas; adopting an amendment to the City’s official mobility plan; providing for a penalty in the maximum amount of $2,000.00 for violations thereof; providing a severability clause and an effective date. The Planning and Zoning Commission voted 4-0 to recommend approval of the request. Motion for approval by Commissioner Dyer and seconded by Commissioner McDuff (MPA25-0002b, Future Collector between I-35 and Western, Sahar Esfandyari).]
ITEM D MPA 250002B. HOLD A PUBLIC HEARING. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS REGARDING A CITY INITIATED COMPREHENSIVE PLAN AMENDMENT TO MODIFY THE THOROUGHFARE MAP OF THE 2022 MOBILITY PLAN, AND I'LL LEAVE IT AT THAT AND I'LL OPEN THE PUBLIC 
          HEARING. THANK YOU. >> SURE. >> GOOD EVENING. SAHARA ESFANDIARI, SENIOR TRANSPORTATION PLANNER, DEVELOPMENT SERVICES. THIS MOBILITY PLAN AMENDMENT IS FOR A FUTURE CONNECTOR BETWEEN I-35 AND WESTERN BOULEVARD. AS YOU CAN SEE IN THIS MAP, THE GENERAL AREA OF THIS FUTURE CONNECTOR LOCATED AT WEST OF I-35, EAST OF WESTERN, SOUTH OF US 380 OR UNIVERSITY DRIVE AND NORTH OF JIM. CRYSTAL AND STAFF RECOMMENDS TO REMOVE THESE FUTURE COLLECTOR. AS YOU CAN SEE HERE, THESE FUTURE COLLECTOR, LOCATED INSIDE THE PINK CIRCLE IN THE SOUTHERN SECTION OF THIS ROAD THERE IS A RAILROAD, KANSAS CITY SOUTHERN RAILROAD CROSSING. ACCORDING TO THE RAILROAD COMPANY REGULATIONS, INSTEAD OF IN IN ORDER TO CREATE A NEW CROSSING, WE HAVE TO CLOSE TWO OR MORE EXISTING CROSSINGS. 
          ALSO, THE NORTHERN SECTION OF THIS ROAD, LOCATED INSIDE A FLOODPLAIN. THEREFORE, IN ORDER TO AVOID ANY ENVIRONMENTAL, ADVERSE ENVIRONMENTAL IMPACT AND ALSO THE SAFETY CONCERNS FOR THE RAILROAD CROSSING, STAFF RECOMMENDS REMOVAL OF THESE FUTURE COLLECTOR. ALSO THIS ROAD, LOCATED IN A VERY CLOSE DISTANCE FROM I-35 AND WESTERN BOULEVARD AS A PRIMARY ARTERIAL. 
          SO IN THE ABSENCE OF THIS ROAD IN THIS COLLECTOR, THERE WILL BE ENOUGH ROAD CAPACITY TO TAKE CARE OF THE TRAFFIC FLOW IN THE AREA. THIS PROPOSAL MEETS THE FOLLOWING MEETS THE CRITERIA FOR THIS APPROVAL, ESPECIALLY REGARDING TO THE COMPREHENSIVE PLAN. FUTURE LAND USE AND MOBILITY PLAN. WE HAVE DONE THE PUBLIC OUTREACH REQUIREMENT FOR THIS REQUEST AND RECEIVED ONE LETTER IN FAVOR OF THIS REQUEST. THE PLANNING AND ZONING COMMISSION RECOMMENDED APPROVAL, AND STAFF ALSO RECOMMENDS APPROVAL FOR THIS REQUEST AS IT COMPLIES WITH THE CRITERIA IN 
          [04:45:03]
          SECTION 271D OF THE DCC. THANK YOU. >> THANK YOU VERY MUCH. 
          REPRESENTATIVE FROM OUR MAYOR PRO TEM. >> THANK YOU SIR, I WAS CURIOUS, IS THE MAIN GOAL HERE TO NOT BUILD THE ROAD ACROSS A RAILROAD SO THAT WE DON'T HAVE TO DEAL WITH THE CROSSING OR CLOSING OF TWO. IS THAT REALLY THE PROBLEM THAT WE'RE TRYING TO SOLVE HERE 
          WITH THIS PROPOSAL? >> BOTH THE FLOODPLAIN AND THE CROSSING IS CREATING A HUGE CONCERNS, BECAUSE CREATING A NEW CROSSING GENERALLY COMES WITH THE RISKS AND THE SAFETY IMPACT THAT IT HAS. ALSO, CLOSING THE OTHER TWO EXISTING WILL HAVE IMPACT ON THE TRAFFIC FLOW 
          THROUGHOUT THE CITY. >> SO IT'S KIND OF JUST TO AVOID A HEADACHE, LIKE IT WOULD BE A 
          HEADACHE TO TRY. >> TO BUILD THIS ROAD. ACTUALLY, THIS ROAD LOCATED INSIDE ONE PROPERTY BLOCK OF PROPERTY SO THEY THEY CAN HAVE ACCESS THROUGH US. 380 IF THEY. SO 
          THANK YOU. THEY DON'T NEED THE ACCESS. YEAH. >> THANK YOU. REPRESENTATIVE 
          FROM DISTRICT FOUR. >> THANK YOU. WILL, WILL THIS WHATEVER THIS ROAD IS. 
          >> IT DOESN'T HAVE A NAME. >> DOESN'T HAVE A NAME. NO. IF I'M RIGHT ON TARGET. 
          >> THAT'S A SONG. RIGHT. >> EXCELLENT. >> EXCELLENT. THERE YOU GO. 
          >> A SORT OF A STREET WITH NO NAME. ANYWAY. >> THERE. 
          >> YOU GO. WILL. DO YOU ENVISION THAT THE STREET WITH NO NAME WILL LOOK SIMILAR TO WESTERN 
          BOULEVARD? WESTERN BOULEVARD? THAT'S A SIX LANE ROAD, I THINK. >> SO THIS IS A COLLECTOR LIKE ON THE MOBILITY PLAN. IT WAS DESIGNED TO BE AS A COLLECTOR. SO IT ONLY HAS 60FT OF RIGHT OF WAY. SO IT'S LIKE THE SMALLER IN THE HIERARCHY THAN WESTERN IS LIKE THE WIDER ROAD IS THE 
          PRIMARY ARTERIAL. >> OKAY. I'M RECALLING WESTERN BEING SIX LANES. OKAY. WOULD 
          THIS THEN BE FOUR. >> SO WE ARE REQUESTING TO REMOVE IT AND NOT HAVING THIS 
          ROAD AT ALL. >> I SEE, I SEE OKAY OKAY. VERY GOOD, VERY GOOD. THANK YOU THANK 
          YOU. >> OKAY. ANY OTHER QUESTIONS FOR STAFF SEEING NONE I WILL CLOSE THE PUBLIC. OH AND IT'S A PUBLIC HEARING. SO IF ANYONE CARES TO SPEAK YOU CAN COME DOWN AND FILL OUT A CARD AFTERWARDS. SEEING NONE I'LL CLOSE THE PUBLIC HEARING AND RECOGNIZE 
          REPRESENTATIVE FROM DISTRICT SIX. >> I'LL MOVE APPROVAL AS 
          PRESENTED. AND THANK YOU VERY MUCH. >> MAYOR PRO TEM. 
          >> I'LL SECOND. >> HAVE A MOTION AND A SECOND. ANY OTHER DISCUSSION? SEEING NONE. LET'S VOTE ON THE SCREEN. THAT PASSES SEVEN ZERO TAKES US TO ITEM SIX A OUR INDIVIDUAL 
          [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 Holt Texas, LTD., through the Buy Board Cooperative Purchasing Network Contract Nos. 685-22 and 740-24, for authorized repair services, purchases, and rentals of Caterpillar construction equipment for the Fleet Services Department; providing for the expenditure of funds therefor; and providing an effective date (File 8805 - awarded to Holt Texas, LTD., 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 $14,983,500.00). The Public Utilities Board recommends approval (6 - 0).]
ITEMS FOR CONSIDERATION. FIRST IS ID 251070. CONSIDER ADOPTION OF ORDINANCE OF THE CITY OF DENTON, TEXAS HOME RULE MUNICIPAL CORPORATION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH HOLT, TEXAS LIMITED THROUGH THE BY BOARD COOPERATIVE PURCHASING 
          NETWORK CONTRACT. >> GOOD EVENING, MAYOR AND COUNCIL. TOM GRAHAM, DIRECTOR OF FACILITIES AND FLEET SERVICES FLEET SERVICES DIVISION, IS PROPOSING A CONTRACT FOR CATERPILLAR CONSTRUCTION EQUIPMENT REPAIR AND PURCHASING THROUGH HOLT CAT, THE CITY OF DENTON FLEET SERVICES DEPARTMENT PURCHASES, REPAIRS, AND MAINTAINS AND RENTS VARIOUS TYPES OF CATERPILLAR CONSTRUCTION EQUIPMENT UTILIZED BY SEVERAL DEPARTMENTS THAT SUPPORT CITY SERVICES. THE CONSTRUCTION EQUIPMENT IS UTILIZED BY MULTIPLE DEPARTMENTS TO PROVIDE VARIOUS SERVICES, INCLUDING THE MOVEMENT OF BULK MATERIALS UTILIZING EXCAVATORS AND LOADERS. THE PROPOSED CONTRACT ALLOWS FOR THE PURCHASE, RENTAL, AND REPAIR OF ASSETS UTILIZED BY THESE DEPARTMENTS, SUCH AS WASTEWATER DRAINAGE AND SOLID WASTE. THE REPAIR SERVICES PROVIDED BY THIS CONTRACT ENSURE THAT THE ASSETS REQUIRING SPECIALIZED DIAGNOSTICS AND TECHNICAL KNOWLEDGE REMAIN OPERATIONAL, WHILE RENTAL OPTIONS ALLOW FOR US TO RESPOND TO FLUCTUATING NEEDS WITHOUT LONG TERM COMMITMENTS, ALL VEHICLES AND EQUIPMENT ACQUISITIONS WILL BE PROCESSED THROUGH THE CITY'S BUDGETING PROCESS, AND THE CITY WILL ONLY PAY FOR SERVICES RENDERED AND NOT OBLIGATED TO PAY THE FULL AMOUNT OF THE CONTRACT. HERE'S A CONTRACT ESTIMATE CREATED THROUGH HISTORICAL SPENDING TRENDS. OUR ASSET REPLACEMENT AND ADDITIONS MATRIX, WHICH IS DONE THROUGH OUR 15 POINT ASSET MANAGEMENT SYSTEM. TO THE RIGHT YOU'LL SEE AN ASSET ACQUISITION EXAMPLE, WHICH IS A TRASH COMPACTOR, AND YOU'LL SEE THE DOLLAR AMOUNT OF THAT ASSET REAFFIRMING WHY THE CONTRACT VALUE IS OF $14.9 MILLION. STAFF RECOMMENDS APPROVAL OF A ONE YEAR WITH FOUR ADDITIONAL ONE YEAR EXTENSIONS AND A TOTAL OF FIVE YEARS NOT TO EXCEED AMOUNT WITH HOLT CAT FOR $14,983,500. ANY QUESTIONS? 
          >> THANK YOU. YES, REPRESENTATIVE FROM DISTRICT TWO. 
          >> THANK YOU. I WENT THROUGH ALL THE PROPOSAL AND MAYBE I'M JUST BEING DUMB, BUT I DIDN'T REALLY SEE THE RENTAL PROVISIONS. CAN YOU JUST GIVE A LITTLE COLOR? I UNDERSTOOD THE CAPITAL, YOU 
          [04:50:03]
KNOW, PURCHASE AND YOU KNOW ALL THE REST. BUT CAN YOU GIVE A LITTLE COLOR TO RENT THE RENTAL 
          OBLIGATIONS? AND WHAT WE ENVISION FOR THIS CONTRACT? >> ABSOLUTELY. SO WITH A LOT OF OUR CONTRACTS AND ESPECIALLY WITH BILLBOARDS, THEY PROVIDE RENTAL OPTIONS. AND WHAT THAT WILL DO FOR US IS IF THERE'S A FLUCTUATING NEED WITHIN THE OPERATION, WE CAN UTILIZE THAT BILLBOARD ON THEIR PRE-ESTABLISHED RENTAL AGREEMENTS TO RENT IT FOR A SHORT PERIOD OF TIME, TO PREVENT US TO HAVE TO EXPEND CAPITAL FUNDS FOR A MAJOR PIECE OF 
          EQUIPMENT OVER A LONG PERIOD OF TIME. >> SO JUST JUST TO HELP ME, GIVE ME CAN YOU GIVE ME 1 OR 2 EXAMPLES OF WHAT KIND OF LIKE RENT A CAT FOR A MONTH KIND OF 
          THING? >> YEAH, ESSENTIALLY IT'S LIKE ENTERPRISE RENT A CAR, BUT FOR AN ASSET, YOU CAN GO OUT AND BUY A SKID STEER FOR A WEEKEND AND RETURN IT AT A MINIMAL COST. 
          >> AND DO WE? WHAT ROUGHLY WHAT PERCENTAGE OF THE CONTRACT DO WE EXPECT TO BE RENTALS VERSUS 
          PURCHASE AND REPAIR? >> HISTORICALLY, RENTALS ARE A VERY LOW PERCENTAGE, BUT WE PUT THAT PROVISION IN THERE TO AVOID ANY LONG TERM COMMITMENTS FOR THE CITY OVER A SHORT TERM NEED. 
          >> BUT BUT IT TYPICALLY WOULD BE SMALL AND EVERYTHING ELSE WOULD BE REPAIR AND PURCHASE. CORRECT. 
          ALL RIGHT. AND THE ONLY REASON I'M SORT OF PUSHING ON THAT A LITTLE BIT IS, YOU KNOW, I UNDERSTAND THE SORT OF SHORT TERM NEEDS OF A RENTAL OR, OR, YOU KNOW, A CONSULTANT OR ANYTHING ELSE THAT WE DON'T HAVE IT PERMANENTLY IN HOUSE, BUT THEN WE DON'T HAVE THE LONG TERM CAPITAL VALUE OF THAT THING, AND WE KEEP RENTING IT. AND THEN AT A CERTAIN POINT, WE RENT 
          OURSELVES TO DEATH OR WE CONSULT OURSELVES TO DEATH KIND. >> OF THING. ABSOLUTELY. AND THROUGH OUR COLLABORATIVE PROCESS WITH THE DEPARTMENTS WE REVIEW EVERY YEAR, HOW MUCH MONEY WE SPENT IN RENTALS AND DETERMINE IF THAT IS AN ASSET THAT NEEDS TO BE ACQUIRED TO ENSURE THAT WE'RE SPENDING MONEY APPROPRIATELY, OR IF THE RENTAL IS BELOW THE VALUE OF THAT LONG 
          TERM ACQUISITION. >> I APPRECIATE THAT. >> THANK YOU. 
          >> ANY OTHER QUESTIONS FOR STAFF? SEEING NONE, I'LL TAKE A MOTION. REPRESENTATIVE FROM 
          DISTRICT TWO. >> I MOVE APPROVAL. >> IS THERE A SECOND 
          REPRESENTATIVE FROM DISTRICT FOUR? >> I SECOND. 
          >> WE HAVE A MOTION AND A SECOND. ANY OTHER DISCUSSION? SEEING NONE, LET'S VOTE ON THE SCREEN. THAT PASSES SEVEN ZERO TAKES US TO ITEM B I'D 251119. CONSIDER ADOPTION OF ORDINANCE 
          [B. Consider adoption of an ordinance of the City Of Denton, a Texas home-rule municipal corporation, authorizing the City Manager to utilize a contract through the City of Fort Worth, for the purchase of motor vehicle fuels for the Fleet Services Department, as awarded by the City of Fort Worth Bid No. 63191; providing for the expenditure of funds therefor; and providing an effective date (File 8855 - awarded to TACENERGY, 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 $24,444,000.00).]
OF THE CITY OF DENTON, TEXAS, A HOME RULE MUNICIPAL CORPORATION AUTHORIZING THE CITY MANAGER TO UTILIZE A CONTRACT THROUGH THE CITY OF FORT WORTH FOR THE PURCHASE OF MOTOR VEHICLE FUELS 
          FOR THE FLEET SERVICES DEPARTMENT. >> GOOD EVENING AGAIN, TOM KRAMER, DIRECTOR OF FACILITIES AND FLEET SERVICES. THE FLEET SERVICE DEPARTMENT IS PROPOSING A CONTRACT FOR BULK FUEL PURCHASES WITH TAC ENERGY THROUGH THE FORT WORTH COOPERATIVE. THE CITY OF DENTON SERVICES DEPARTMENT PURCHASES MOTOR VEHICLE FUEL, PRIMARILY UNLEADED GASOLINE AND DIESEL, FOR THE ASSETS UTILIZED BY ALL CITY DEPARTMENTS FOR CITY SERVICES. THE CONTRACT WILL PROVIDE CONVENIENT AND RELIABLE ACCESS TO OUR BULK FUEL, WHICH IS INDISPENSABLE TO DAILY FUNCTIONS OF OVER 1600 CITY ASSETS. THOSE FUEL DEPOTS ARE LOCATED AT TWO OPERATIONAL SITES, AT THE SERVICE CENTER AND AT THE LANDFILL, WITH A THIRD SITE BEING OPENED AT THE FIRE STATION SEVEN LOCATION, PREVENTING US FROM HAVING TO UTILIZE WEX CARDS, WHICH IS PAYING FOR FUEL AT RETAIL PRICE, REDUCING THAT USAGE AND THEN ALSO MAKING IT MORE CONVENIENT FOR THE CITY SERVICES ON THAT SIDE OF THE CITY. THE PROPOSED CONTRACT ALLOWS FOR US TO PURCHASE A VARIOUS MOTOR VEHICLE FUELS, INCLUDING, BUT NOT LIMITED TO, UNLEADED GASOLINE AND DIESEL FOR THOSE ASSETS. ALL THE ACQUISITIONS WILL BE PROCESSED THROUGH THE CITY'S BUDGETING PROCESS, AND THE CITY WILL ONLY PAY FOR SERVICES RENDERED. IT IS NOT OBLIGATED PAY TO THE FULL CONTRACT AMOUNT UNLESS NEEDED. OUR CONTRACT ESTIMATES ARE BASED OFF OF OUR HISTORICAL SPENDING TRENDS AND THEN INCLUDING OUR FUTURE TRENDING ANALYSIS THAT WE COMPLETE WITH A COLLABORATIVE EFFORT WITH THE OTHER OPERATIONAL DEPARTMENTS. STAFF RECOMMENDS AWARDING A CONTRACT WITH TAC ENERGY LLC FOR THE PURCHASE AND DELIVERY OF BULK FUEL FOR THE FLEET SERVICES DEPARTMENT FOR ONE YEAR, WITH AN OPTION OF FOUR ADDITIONAL ONE YEAR EXTENSIONS AND THE TOTAL OF FIVE YEARS NOT TO EXCEED 
          24,440,000. ANY QUESTIONS? >> THANK YOU. REPRESENTATIVE FROM DISTRICT 54.2. 
          >> MIL THIS YEAR. CORRECT. >> I'M SORRY, COULD YOU SAY. >> AGAIN, SIR, 4.2 MILLION THIS 
          YEAR, CORRECT? >> YES, SIR. A LITTLE A LITTLE SHORT. 
          >> HOW MUCH ARE. HOW MUCH ARE OUR FLEET VEHICLES, CITY VEHICLES PURCHASING ON A YEARLY 
          BASIS AT OFF SITE LOCATIONS? >> WE HAVE THE PERCENTAGES OF WHAT WE SELL IN BULK FUEL VERSUS WHAT WE SELL IN WEX. IT IS LOWER. IT'S UNDER 10%. WE HOPE TO DRIVE THAT NUMBER CONTINUOUSLY DOWN AS WE OPEN UP THAT SOUTH SIDE FUEL ISLAND AT FIRE STATION SEVEN. 
          >> DO YOU KNOW HOW MUCH WE CAN ESTIMATE THE SAVINGS WILL BE? >> WITH THE COST OF FUEL FLUCTUATING EACH DELIVERY? IT'S HARD TO SAY WHAT THE SAVINGS WILL BE, BUT THERE WILL BE A SAVINGS BY UTILIZING OUR BULK FUEL RATHER THAN USING THE RETAIL FUEL. 
          >> OKAY. ALL RIGHT. THANK YOU. >> REPRESENTATIVE FROM DISTRICT FOUR. 
          >> BUT THAT SAVINGS IS ROUGHLY 10% OFF OF WHAT WHAT I'M PAYING AT RETAIL. 
          [04:55:02]
          >> THE SAVINGS PER GALLON OF FUEL AGAIN FLUCTUATES DEPENDING ON WHAT WE CAN GET AT THE MARKET RATE FOR BULK FUEL VERSUS WHAT THE RETAIL RATE IS. IT IS ALWAYS A SAVINGS AT BULK FUEL COST, ESPECIALLY WITH THE FORT WORTH COOPERATIVE WHERE WE'RE BUYING IN LARGE VOLUME. WHAT I'M SAYING IS THAT THERE IS A AMOUNT OF FUEL PURCHASE ON RETAIL, WHICH IS UNDER 10% OF OUR TOTAL BULK VALUE. I CAN PROVIDE THOSE NUMBERS WITH PRECISION AFTER THE MEETING. I DO NOT HAVE THEM WITH 
          ME. >> OBVIOUSLY THE CITY IS NOT PAYING TAXES ON FUEL. 
          >> THERE IS A TAX TO BE PAID ON FUEL, BUT IT'S A IT'S A BULK FUEL TAX AND ROAD TAX THAT'S PAID BY ALL ENTITIES THAT USE IT. BUT WE DO NOT PAY A FUEL TAX FOR STATE TAXES. 
          >> I WOULD BE VERY INTERESTED IN KNOWING ON ON A GIVEN DAY YOU PICK THE DAY HOW MUCH GAS IS CHARGING AT QUIKTRIP AND WHAT YOUR GASSING UP A POLICE CAR AT THE AT THE AT THIS RATE. THANK 
          YOU. YES, SIR. >> WE'RE OKAY. >> ANY. 
          >> IS THIS ONE MORE. >> REPRESENTATIVE DISTRICT FIVE. >> WE'RE PAYING TAXES ON THE 
          TRANSPORTATION TO GET THE FUEL IN BULK. RIGHT? CORRECT. OKAY. >> ANY OTHER QUESTIONS? 
          REPRESENTATIVE FROM DISTRICT SIX. >> I MOVE APPROVAL AS PRESENTED. 
          AND THANK YOU FOR COMING UP WITH NEW WAYS TO TRY TO SAVE MONEY AND TIME. 
          >> YES, MA'AM. >> THANK YOU. THANK YOU. >> REPRESENTATIVE FROM DISTRICT 
          FIVE. >> SECOND. >> WE HAVE A MOTION AND A SECOND, ANY OTHER DISCUSSION ON SCREEN? PASSES SEVEN ZERO TAKES US TO OUR LAST ITEM BEFORE 
          [C. Consider adoption of an ordinance of the City of Denton approving an economic development agreement under Chapter 380 of the local government code to promote economic development and to stimulate business activity and economic growth of the City of Denton between the City of Denton and Mayday Manufacturing Co. regarding the expansion of operations in the City of Denton; authorizing the expenditure of funds; therefore and providing an effective date. The Economic Development Partnership Board recommends approval (11-0-1)...Body]
CONCLUDING ITEMS. THAT IS ITEM C, ID 25913. CONSIDER ADOPTION OF AN ORDINANCE OF THE CITY OF DENTON, TEXAS CITY CITY OF DENTON APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT UNDER CHAPTER 380 OF THE LOCAL GOVERNMENT CODE TO PROMOTE ECONOMIC DEVELOPMENT AND TO STIMULATE BUSINESS ACTIVITY. 
          >> GOOD EVENING. >> MAYOR AND COUNCIL. I'M CLAY PARKER, BUSINESS RECRUITMENT SPECIALIST WITH THE OFFICE OF ECONOMIC DEVELOPMENT, AND I'M HERE TO PROVIDE A PROPOSAL FOR MAYDAY MANUFACTURING FOR AN EXPANSION INCENTIVE. SO JUST SOME BACKGROUND ON MAY DAY, IT WAS FOUNDED IN 1966, AND IT'S A WORLD LEADER IN BUILD A MANUFACTURING OF AEROSPACE BUSHINGS, PINS, SLEEVES AND OTHER TURNED METAL PARTS. IN 2016, IT WAS ACQUIRED BY ESCO TECHNOLOGIES AS LONG ALONGSIDE HIGH TECH METAL FINISHING, WHICH IS ALSO PART OF THE NELSON FAMILY BUSINESS, AND IN 2022 THAT WAS ABSORBED AND IS NOW PART OF THEIR PROCESSING DIVISION. TO PROVIDE SOME CONTEXT, WE'VE ALREADY INCENTIVIZED MAYDAY FOR AN EXPANSION BEFORE, WHICH WAS EXTREMELY SUCCESSFUL FOR THEM. IT WAS AN $8.5 MILLION EXPANSION. IT WAS A 75% REBATE ON AD VALOREM TAXES ABOVE THE BASE VALUATION AT THAT POINT IN TIME, AND THAT TEN YEAR INCENTIVE WRAPPED UP IN 2022. NOW, IN MARCH OF 2025, WE RECEIVED AN APPLICATION FOR A NEW EXPANSION. DUE TO INCREASED DEMAND, MAYDAY IS LOOKING TO EXPAND THEIR FACILITY FOOTPRINT BY 45,000FT■!S. IDEALLY, THEY'D LIKE TO BREAK GROUND IN JULY, FINISHING UP AT THE END OF NEXT YEAR OR EARLY ON INTO Q1 RIGHT AFTER THAT. FOR SOME MORE CONTEXT, THIS IS WHERE MAYDAY IS LOCATED, JUST OFF OF 35 SOUTH OF 380, AND THIS IS THE FACILITY ITSELF, BOTH ON THE INSIDE AND OUTSIDE. AND WITH THAT TOP RIGHT IMAGE, YOU GET AN IDEA OF THE EXPANSION ITSELF. THE RED OUTLINE IS WHERE THAT 45,000FT■S ARE GOING TO COME FROM, BASICALLY JUST MAKING THE BUILDING ITSELF A BIG SQUARE. BENEFITS. OBVIOUSLY, THIS SUPPORTS AN EXISTING MANUFACTURING LEADER WITHIN THE DENTON REGION ITSELF, AND MAYDAY ITSELF IS A INTEGRAL ROLE WITHIN THE AEROSPACE INDUSTRY. THEY ALSO EMPLOY JUST AROUND 400 EMPLOYEES WITHIN THE DENTON FACILITY, WITH A MEAN SALARY GREATER THAN THE CITY'S AVERAGE. 
          THEY'VE ALSO BEEN GREAT COLLABORATORS WITH OUR LOCAL EDUCATIONAL PARTNERS BETWEEN THE ACADEMY AND UNT, BETWEEN JUST GENERAL COLLABORATION EFFORTS AND SOME SCHOLARSHIPS WITH LAGRONE, AND THEN BASED ON OUR OWN EVALUATION FOR THE INCENTIVE MATRIX, THEY WERE IN THE ACCEPTABLE RANGE WITH 78 TOTAL POINTS ACROSS THE DIFFERENT FORMS OF ANALYSIS AND THE STRATEGIC GROWTH AREAS. AS FOR THE APPLICATION ITSELF, IT IS $14.5 MILLION OF TOTAL CAPITAL INVESTMENT FOR THE EXPANSION. 9 MILLION OF THAT WOULD BE IN THE BUILDING ITSELF IN IMPROVEMENTS, AND 5.5 MILLION WOULD BE IN THE BUSINESS PERSONAL PROPERTY THAT THEY'D BE ABLE TO PUT IN THAT EXPANDED SPACE. THEY ESTIMATE THAT THIS WOULD ALLOW FOR 50 NEW JOBS. AND THIS GIVES YOU AN IDEA OF WHAT THAT WOULD DO TO THEIR CURRENT VALUATION. THOSE FIRST THREE COLUMNS SHOW YOU THE 33.5 
          [05:00:05]
MILLION THAT THEY ARE CURRENTLY EVALUATED AT. THROWING ON THAT 14.5 MILLION BRINGS THEM JUST SHY OF 50. AND IN TERMS OF OUR ANNUAL CITY REVENUE, THAT ADDS ABOUT $84.8 THOUSAND TO ANNUAL CITY TAXES, BRINGING THEM JUST SHY OF 300,000. AND IN TERMS OF OUR PROPOSED INCENTIVE, WE'RE DOING A PRETTY SIMILAR STRUCTURE TO THE LAST AGREEMENT. A LITTLE BIT LOWER ON THE REBATE WOULD BE A 60% REBATE ON NEW IMPROVEMENTS AND BPP FOR TEN YEARS. BASICALLY, AGAIN, THAT ADDED VALUE THAT THE EXPANSION ITSELF CREATES, AND A DIRECT CASH GRANT FROM THE CATALYST FUND, WITH AN EXPANSION GRANT OF $25,000 THAT IS ESTIMATED TO BE 577, $944 OVER THE TEN YEAR PERIOD. FOR THE INCENTIVES AND THE CUMULATIVE REVENUE WE WOULD GET IN THAT TIME BETWEEN BOTH THE EXISTING REVENUE FROM THE FACILITY AND THE REMAINING REVENUE THAT'S NOT BEING INCENTIVIZED WITH THE EXPANSION WOULD BE 2.3 MILLION, JUST A BIT NORTH OF THAT. AS FOR THOSE JOBS, OBVIOUSLY THIS CURRENTLY RETAINS THOSE 400 JOBS I MENTIONED PREVIOUSLY, BUT THE 50 NEW JOBS HAVE SALARIES RANGING FROM 45 TO $65,000, AND THEY REALLY RANGE FROM PLATERS TO QUALITY CONTROL TO MACHINISTS. IT REALLY PROVIDES A BUNCH OF NEW OPPORTUNITIES TO THE COMPANY ITSELF FOR GETTING SOME NEW PEOPLE AND SOME NEW LOCALS IN THE DOOR. AND THIS IS OUR ECONOMIC IMPACT REPORT WITH IMPACT DATA SOURCE, AND IT SHOWS YOU FOR THE EXPANSION ALONE, FOR THE REVENUE THAT THE EXPANSION WOULD CREATE. IT GIVES YOU THAT IDEA OF A 4.3 YEAR PAYBACK PERIOD WITH A 21.3% RATE OF RETURN, AND THOSE BAR CHARTS AT THE BOTTOM RIGHT, BOTTOM LEFT GIVE YOU AN IDEA OF THE NET BENEFITS WHEN EXCLUDING THE INCENTIVES OVER THOSE TEN YEARS, WHICH IS $552,349. AGAIN, THIS DOESN'T CONSIDER THE CURRENT REVENUE FROM THE PRESENT EXISTING BUILDING. IF YOU PUT THAT RETENTION INTO CONTENTION WITH THIS ANALYSIS TO 1.2 YEAR PAYBACK PERIOD WITH A 77% RATE OF RETURN, SO IT IS OUR STAFF RECOMMENDATION TO APPROVE THE ADOPTION OF THIS ORDINANCE. AND THE CHAPTER 380 AGREEMENT, WHICH WOULD NOT EXCEED $577,944. WITH THE TERMS I PREVIOUSLY DESCRIBED AND THE ECONOMIC DEVELOPMENT PARTNERSHIP BOARD HAD A CHANCE TO LOOK ON THIS AT MAY 14TH, 2025, WITH 11 APPROVALS IN ONE ABSTENTION. AND I'M READY FOR 
          QUESTIONS. >> OKAY. THANK YOU VERY MUCH. QUESTIONS FOR STAFF 
          REPRESENTATIVE FROM DISTRICT TWO. >> THANK YOU. I FORGOT TO ASK Y'ALL THIS WHEN WE PREVIOUSLY TALKED ABOUT THIS. BUT ON THE PREVIOUS GRANT DID THEY THEY THE RETURN OF INVESTMENT MATCHED THE PERIODS THAT WE EXPECTED AND OR WAS QUICKER IN TERMS OF ROI ON THE PREVIOUS ONE. IN OTHER WORDS, YOU KNOW, NOT ONLY MY QUESTION IS NOT ONLY IS THIS AN ESTABLISHED COMPANY WITH 400 EMPLOYEES, YADA YADA YADA, BUT THEY THEY KEPT TO THE PERIODS OF 
          THE PREVIOUS AGREEMENT AND OR BETTER. CORRECT? >> YES. SO MOST OF OUR THREE AGREEMENTS LIKE THIS USUALLY HAVE BUILT IN PROVISIONS THAT HAVE A MINIMUM AMOUNT OF CAPITAL INVESTMENT TO REACH BASICALLY ALMOST WHAT YOU'RE GETTING OUT OF HITTING THE EXPECTED AMOUNT OF CAPITAL INVESTMENT, AND CONVERSELY, HOW THAT AFFECTS THE RATE OF RETURN AND EVERYTHING. 
          SO THE AGREEMENT ITSELF WAS SUCCESSFUL. THEY WERE ABLE TO MEET THOSE EXPECTATIONS AND CARRY IT ON THROUGH THE TEN YEARS. SO THEY DIDN'T FALL SHY OF FALL SHORT OF THE INVESTMENT ITSELF. I'M NOT FULLY UP TO THE DETAILS ON THE COMPLETE AGREEMENT SINCE THAT WAS BACK IN 2012, BUT THE AGREEMENT ITSELF DID NOT HAVE ANY ISSUES IN TERMS OF SOME OF THOSE RESTRICTIONS 
          FOR MEETING THE EXPECTED INVESTMENT AND EVERYTHING. >> ALL RIGHT, I APPRECIATE THAT. 
          >> THANK YOU. ABSOLUTELY. >> REPRESENTATIVE FROM DISTRICT FIVE. 
          >> I APOLOGIZE THAT I DID NOT ASK THIS EARLIER. I WASN'T PARTICULARLY CURIOUS, BUT I AM 
          CURIOUS NOW. 11 AND ONE, WHAT WAS THE REASON FOR THE ONE? >> THE ONE ABSTENTION WAS FROM FORMER COUNCIL MEMBER PAUL MELTZER, WHO THOUGHT THAT HE WOULD BE HERE TO VOTE ON IT TODAY. BUT THIS GOT PUSHED A LITTLE BIT, SO HE DID NOT GET A CHANCE TO VOTE ON IT IN THE 
          INDIVIDUAL CONSIDERATION. >> THANK YOU. >> REPRESENTATIVE FROM DISTRICT 
          SIX. >> AND FORGIVE ME, THIS IS SOMETHING I FEEL LIKE I SHOULD KNOW. DO WE HAVE ANY KIND OF MECHANISM THAT SAYS, FOR EXAMPLE, WITH THIS INCENTIVE, IF WE'RE GOING TO TAKE A CERTAIN AMOUNT FROM THE CATALYST FUND, THAT THE CATALYST FUND GETS PAID BACK FIRST BEFORE THE REST GOES INTO THE GENERAL FUND, OR IS THERE IS THERE ANYTHING LIKE 
          THAT TO MAINTAIN THE CATALYST FUND WHEN WE USE IT IN THIS WAY. >> FROM THE SPECIFIC REVENUE GENERATED FROM MAY DAY? NOT THAT I KNOW OF. IT'S NOT IN THE AGREEMENT. IT'S NOT IN THE 
          AGREEMENT ITSELF. >> THANK YOU. THANK YOU VERY MUCH. 
          >> OKAY. THIS IS. >> THIS TO SPEAK AGAIN OR IS THIS LINGERING? OKAY. GOT IT. 
          [05:05:06]
OKAY. NO PROBLEM. OH, WELL, ANYWAY, REPRESENTATIVE FROM DISTRICT FIVE FOR THE MOTION. 
          >> MOTION? I'M SORRY. >> I'M SORRY. I THOUGHT YOU WERE TALKING ABOUT THE BUTTON. I MOVE 
          APPROVAL. THANK YOU FOR BRINGING THIS FORWARD. >> REPRESENTATIVE FROM DISTRICT 
          SIX. >> SECOND. >> WE HAVE A MOTION IN A SECOND. 
          ANY OTHER DISCUSSION? SEEING NONE. LET'S VOTE ON THE SCREEN. THAT PASSES SEVEN ZERO. THANK 
          [7. CONCLUDING ITEMS]
YOU VERY MUCH. APPRECIATE IT. YEP. SO THAT TAKES US CONCLUDING ITEMS. ANY CONCLUDING ITEMS GOT 
          WIPED OUT. REPRESENTATIVE FROM DISTRICT SIX. >> I JUST WANTED TO SAY WELCOME TO OUR NEW COUNCIL PERSON. WE'RE VERY GLAD YOU'RE HERE. WE'RE GLAD TO HAVE THE OPPORTUNITY TO WORK WITH YOU. AND I HOPE THAT EACH YEAR AS WE HAVE A DIFFERENT MAKEUP, IT'S A FRESH START FOR US ALL TO START OVER, RECOMMIT TO COLLABORATING, AND SOME OF THE WORDS THAT YOU SAID AT YOUR SWEARING IN, BEING KIND, WORKING IN A COLLABORATIVE WAY. I JUST HOPE YOU KNOW THAT I HEARD THOSE WORDS AND THEY MEAN SOMETHING TO ME. AND SO I'LL, I'LL I'M GOING TO ASPIRE TO THE SAME THING, BUT WELCOME. AND HERE'S TO A NEW YEAR OF MOVING THE CITY FORWARD. HOPEFULLY TOGETHER. THANK YOU. 
          >> REPRESENTATIVE FROM DISTRICT TWO. >> THANK YOU. SO A COUPLE THINGS. AS A COUPLE OF US HERE IN THE DAIS ARE MEMBERS OF ROTARY. WE HAVE THE ROTARY ROTARY YOUTH LEADERSHIP ACADEMY COMING UP WEDNESDAY THROUGH SATURDAY. AND I SPECIFICALLY MENTIONED THAT BECAUSE STAFF HAS BEEN ON BOARD WITH THE CITY COUNCIL AND OTHER OTHER ACTIVITIES, REALLY HELPING US PLAN THAT. SO I REALLY WANT TO GIVE A SHOUT OUT TO KRISTY, ANGIE, JULIE AND SEAN AND DEVELOPMENT SERVICES AND CHIEF OF STAFF FOR HELPING, YOU KNOW, PROMOTE THIS, THIS YOUTH ACTIVITY. AND THANK YOU, SARAH, FOR PUTTING YOUR STAFF ON IT AND GIVING THEM THE SORT OF FLEXIBILITY IN THEIR TIME TO DO THAT. IT WAS A GREAT SUCCESS LAST YEAR, AND I LOOK FORWARD TO A REALLY GOOD EVENT THIS YEAR. I'LL JUST BRIEFLY HIT ON JUNETEENTH. OTHERS WILL PROBABLY HAVE WORDS ON THAT. THEN BECAUSE WE WON'T MEET AGAIN UNTIL THE 15TH, I'M GOING TO TAKE THE PERSONAL PRIVILEGE OF WISHING MY WIFE, MY SON, MY BROTHER IN LAW, MY MOTHER AND MY PHD ADVISORS ALL HAPPY BIRTHDAYS, ALL WITHIN A WEEK OF EACH OTHER. SO IT JUNE IS TOUGH FOR ME. SO HAPPY BIRTHDAY EVERYBODY. 
          >> REPRESENTATIVE FROM DISTRICT FIVE. >> HAD THE OPPORTUNITY, THE PRIVILEGE TO ATTEND THE NO KINGS PROTEST ON SATURDAY. IT WAS GREAT. IT WAS PEACEFUL. IT WAS JUST LIKE WE WOULD EXPECT IT TO BE IN DENTON. BUT FOR ME, I WANTED TO HIGHLIGHT A SPECIFIC EXPERIENCE I HAD AS I WAS STANDING WITH DOCTOR BECK LISTENING TO SOME OF THE SPEAKERS, I WITNESSED THE POLICE LIEUTENANT INTERACT WITH ONE OF THE ORGANIZERS OF THE RALLY, AND WHAT I SAW IS HE WENT UP TO HER. HE INTRODUCED HIMSELF. HE ASKED ABOUT A LITTLE BIT ABOUT THE GENESIS OF THE EVENT. HE ASKED ABOUT THE TIME, THE SPECIFICS, AND THEN HE SAID, HEY, JUST SO YOU KNOW, MY TEAM AND I WERE HERE TO ASSIST YOU. WE WANT THIS TO BE A PEACEFUL RALLY. WE WANT THIS TO BE SAFE. WE'RE ALSO COMMITTED TO MAKING SURE THAT YOU ALL ARE HEARD. SO IF YOU NEED ANYTHING, LET ME GIVE YOU MY CELL PHONE NUMBER. AND HE GAVE HER HIS CELL PHONE NUMBER, AND SHE GAVE HIM HER CELL PHONE NUMBER. AND I, I HIGHLIGHT THIS BECAUSE. IT'S NOT ALWAYS DONE THAT WAY. I'VE BEEN TO FAR TOO MANY PROTESTS, FAR, MANY MORE THAN I CAN COUNT, THAN I SHOULD HAVE BEEN AT. AND I CAN SAY THAT I'VE NEVER SEEN THAT TYPE OF INTERACTION, BUT I UNDERSTAND WHY THEY DID THAT, BECAUSE THEY WERE TRAINED TO DO SO. MY UNDERSTANDING IS STARTED WITH IT STARTED WITH CHIEF DIXON WHEN HE CAME, AND IT HAS CONTINUED WITH THE CHIEFS AFTER HIM AND IT CONTINUES TODAY WITH CHIEF ROBLEDO. SO, MISS CITY MANAGER, I WANT TO TELL YOU THANK YOU. I WANT TO HIGHLIGHT THE WORK OF THE TEAM WHO WORKED THE PROTEST ON ON SATURDAY, IN PARTICULAR CHRIS SUMMIT. GOOD MAN, DID A REALLY GOOD JOB. THEY DID A GREAT JOB KEEPING EVERYBODY SAFE. AND THE COMPASSION WITH WHICH HE SHOWED THE ORGANIZER OF THE PROTEST WAS SECOND TO NONE IN DENTON. IN TERMS OF PUBLIC SAFETY. WE DO IT RIGHT, AND I'M GOING TO KEEP ON ENCOURAGING US TO DO IT RIGHT. AND I WILL BE THERE EVERY DAY, EVERY, EVERY STEP OF THE WAY, EVERY DAY TO 
          SUPPORT OUR OFFICERS WHO DO IT THE RIGHT WAY. >> REPRESENTATIVE FROM DISTRICT 
          [05:10:03]
          FOUR. >> THANK YOU MAYOR. LAST WEEK WAS A TOUGH ONE FOR THE ROCK AND ROLL INDUSTRY. AS YOU KNOW, BRIAN WILSON PASSED AWAY WEDNESDAY, JUNE 11TH. BUT TWO DAYS PRIOR TO THAT, SYLVESTER STEWART DIED ON JUNE 9TH. SYLVESTER STEWART, YOU BETTER KNOW HIM AS SLY STONE FROM DENTON, TEXAS, BORN AT 704 EAST PRAIRIE STREET. HIS FATHER WAS ACTUALLY THE SAINT ANDREW CHURCH OF GOD IN CHRIST PASTOR. AND I THOUGHT HE WAS A ROCK AND ROLL LUMINARY. HE RECORDED SUCH SONGS AS DANCE TO THE MUSIC, EVERYDAY PEOPLE, THANK YOU FOR LETTING ME BE MYSELF, FAMILY AFFAIR, I WANT TO TAKE YOU HIGHER AND STAND, AND HE WAS A 1993 ROCK AND ROLL HALL OF FAME INDUCTEE, A SON OF DENTON, TEXAS. I'M PLEASED TO SAY HE, HE AND JOE HOLLAND AND 
          SLY STONE OR ROCK AND ROLL LUMINARIES. >> YEAH. 
          >> GOT IT, GOT IT. AGREED. HERE, HERE. REPRESENTATIVE FROM DISTRICT ONE. 
          >> I'M GOING TO SHARE SOMETHING WITH YOU ALL. THIS IS SOMETHING THAT I HARDLY EVER RARELY, I RARELY DO THIS. AND THAT IS TO GIVE KUDOS TO MYSELF. I JUST WANT TO PAT MYSELF ON THE BACK BY STATING THAT I AM GOING TO BE TAKING UP THE HELM OF PRESIDENT OF DENTON NOON ROTARY CLUB STARTING ON JULY THE. ON JUNE THE 26TH. SO WHEN WE COME BACK, I'LL BE THE PRESIDENT OF THE ROTARY CLUB. AND I AM SO EXCITED TO FALL INTO THAT SPACE AND JUST WANT TO SAY HELLO TO MY FELLOW ROTARIANS. ALSO, WE DON'T WANT TO FORGET ABOUT OUR OUR MISSION TO ASSIST IN THE DOCUMENTARY OF QUAKERTOWN PARK. IF YOU ALL HAVE NOT TAKEN THE OPPORTUNITY TO. HELP WITH FUNDING AND THE FUNDRAISER OF THAT, THAT IS STILL GOING ON. THOSE WERE, I THINK THEY SAY THEY NEED ABOUT $10,000 TO FINISH THIS UP. SO IF YOU ALL HAVE AN OPPORTUNITY TO DO THAT, PLEASE DO SO. SO YOU CAN GET YOUR NAME ON THE SO IT CAN LIVE IN PERPETUITY AT THE END OF THE CREDITS FOR THAT. SO JUST WANTED TO REMIND THE COMMUNITY OF THAT AS WELL. THANK YOU. 
          >> OKAY. AND SO I HAVE A FEW THINGS. SO BEAR WITH ME I. WELL SAID JUDGE HOLLAND ON SLY STONE. 
          THANK YOU FOR THAT. THAT'S THAT'S VERY GOOD RECAP. AND WHAT AN AMAZING TALENT. AGREED FOR WE WON'T BE BACK BEFORE THEN. SO EVERYONE HAVE A HAPPY, SAFE 4TH OF JULY. MY THIRD GRADE GOING ON THIRD GRADE ARE NOW WE HAD THE OPPORTUNITY. WE WERE IN THE NEIGHBORHOOD, SO WE POPPED BY THE FIRE STATION. AND MAN, I CAN'T TELL YOU WHAT A BLESSING THAT WAS. WHAT AN AMAZING GROUP OF PEOPLE. AND THEY GAVE HER THE GAVE HER A TOUR AND ALL THE THINGS. AND SO I JUST APPRECIATE THAT AND ALL THEY DO TO KEEP US SAFE. AND THEN ECHOING THAT, THOSE THAT WORK THIS WEEKEND, THANK YOU VERY MUCH TO MAKE SURE WE KEEP OUR COMMUNITY SAFE. THERE'S LOTS THAT GOES ON TO THAT GOES INTO THAT, MAKING SURE EVERYONE COORDINATES, AND THERE'S A LOT OF CHALLENGES THAT ARE MITIGATED ALONG THE WAY. AND SO I THANK YOU, EVERYONE THAT PLAYED A ROLE IN THAT. 
          REFLECTING BACK ON FATHER'S DAY, I HOPE EVERYONE HAD A GREAT FATHER'S DAY. AND I ALSO WILL SAY I VOLUNTEERED WITH THE CHAMPIONS ROTARY ROTARY CLUB AND THERE IN JUSTIN AREA ON A HABITAT HOME AND SO GOT TO DO SOME PAINTING AND MY LEGS ARE STILL SORE FROM BENDING DOWN AND THE ROLLER AND ALL THE THINGS. BUT IT WAS REALLY, REALLY GOOD TIME, REALLY GOOD PEOPLE. IT'S A GREAT GROUP, ROTARY CLUB, AND SO I ENJOYED THAT. AND THEN WE TALKED ABOUT IT EARLIER, BUT I'M GRATEFUL ANYTIME THAT WE CAN GET PEOPLE IN THE DENTON, I THINK DENTON IS PRETTY GREAT. AND SO THIS WEEK WE HAD THE OPPORTUNITY FOR GOVERNOR ABBOTT TO COME AND DISCOVER DENTON AND WELCOMED HIM AND ALL THE OTHER ELECTED OFFICIALS, SOME OF THE SOME OF THE USUAL SUSPECTS, BUT THEN ALSO NEW FOLKS. AND SO IT'S ALWAYS GREAT TO HAVE THEM HERE. AND THE FACT THAT THEY ARE PASSING ALONG THAT TAX RELIEF TO OUR SENIORS IS, IS PRICELESS. AND SO BETWEEN THAT AND THE OTHER RATE RELIEF, THAT'S THAT'S REALLY TAX RELIEF. THAT'S GREAT. AND THEN I WANT TO SAY SHOUT OUT TO THE UNITED WAY GOLF TOURNAMENT. THAT WAS THIS WEEKEND. UNITED WAY DOES AMAZING WORK IN OUR COMMUNITY. AND IT WAS WELL ATTENDED THERE AT THE COUNTRY CLUB. AND SO ALWAYS APPRECIATIVE OF THOSE THAT SUPPORT THE UNITED WAY AND THEIR EFFORTS TO HELP US FILL IN THE GAPS HERE IN DENTON. AND THEN, AS MENTIONED, JUNETEENTH STARTS TOMORROW. THE FIRST EVENT IS TOMORROW GOES THROUGH THE WEEKEND. SO PLEASE TAKE A LOOK AT THAT. AND ON THERE'S SEVERAL POSTS ONLINE YOU CAN GET A GET A FEEL FOR THE SCHEDULE LEADERSHIP. DENTON GRADUATES 
          [05:15:03]
CONGRATULATIONS TO ALL OF THOSE. THAT WAS A GREAT EVENT TO SIT THERE, TO BE THERE WITH THEM AND BE AT THE HUB CLUB AND WATCH BONNIE BRAE MAKE PROGRESS AS WE TRY TO GET THAT THING DONE, AND THEN I SAID IT EARLIER, BUT I'LL SAY IT AGAIN. COUNCIL MEMBER JESTER, CONGRATULATIONS ON THE RTC APPOINTMENT THAT THAT IS REALLY, REALLY BIG. YOU KNOW, THERE'S PRECIOUS FEW TIMES THAT WE'RE REPRESENTED THAT WAY. AND IF YOU DON'T KNOW ABOUT THE RTC JUST FROM A REGIONAL STANDPOINT, I MEAN, THEY MAKE IT ALL GO AND MAKE SURE WE GET THE LOVE WE NEED. AND SO IT REALLY IS A BIG DEAL. AND I KNOW MAYOR MASON VERY WELL. SO GOOD GUY THAT YOU'LL BE SERVING WITH THERE. SO PLEASE CONTINUE THAT GREAT WORK. AND THANK YOU FOR REPRESENTING DENTON. AND I'LL CONCLUDE WITH THIS UNT COLLEGE OF MUSIC. DOCTOR DEAN, DOCTOR JOHN RICHMOND, CONGRATULATIONS TO HIM BECAUSE THE A CAPPELLA CHOIR THERE AT UNT. AND I THINK I'LL GET THIS RIGHT, THE OCTOBER DWARF CHOIR COMPETITIONS IN GERMANY. AND THEY WENT THERE AND THEY WON IT. AND SO CONGRATULATIONS TO UNT SCHOOL OF MUSIC FOR OUR COLLEGE OF MUSIC FOR THAT ACCOMPLISHMENT. IT'S REALLY BIG. SO WITH
* This transcript was compiled from uncorrected Closed Captioning.