[00:00:01] >> GOOD MORNING, EVERYONE. [1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER] GLAD TO HAVE YOU HERE THIS MORNING WITH US. IT IS 9:00 A.M AND I AM OFFICIALLY CALLING THE WORKSHOP FOR THE CITY COUNCIL OF GALVESTON TO ORDER FOR THURSDAY, AUGUST 22. I WANT TO THANK EVERYBODY IN THE AUDIENCE FOR BEING HERE THIS MORNING. OF COURSE, COUNCIL, NICE TO SEE YOU. I THINK WE'RE GOING TO BE SEEING EACH OTHER ALMOST WEEKLY COMING UP HERE FOR A NUMBER OF MEETINGS. ALL THOSE THAT ARE IN THE AUDIENCE THIS MORNING, I WANT TO WELCOME YOU THAT THOSE THAT ARE IN THE COMMUNITY WATCHING THIS, GOING TO HAVE SOME VERY GOOD EDUCATIONAL DISCUSSIONS THIS MORNING, MAINLY ABOUT OUR BUDGET. I KNOW A LOT OF YOU HAVE QUESTIONS THAT ARE IN THE COMMUNITY ABOUT THAT, AND I HOPE YOU'VE TUNED IN TO PARTICIPATE AND NOT SO MUCH PARTICIPATE, BUT SEE WHAT OUR DISCUSSION POINTS ARE. SAYING ALL THAT, WE DO HAVE A QUORUM, BUT JANELLE, COULD WE HAVE A ROLL CALL. >> MAYOR BROWN. >> PRESENT. >> MAYOR PRO TEM ROB. >> PRESENT. >> COUNCIL MEMBER LEWIS. >> PRESENT. >> COUNCIL MEMBER FINKLEA. >> PRESENT. >> COUNCIL MEMBER BROWN. >> PRESENT. >> COUNCIL MEMBER PORRETTO. >> PRESENT. >> COUNCIL MEMBER RAWLINS. >> HERE. >> WE HAVE ALL OF OUR COUNCIL MEMBERS SEATED. JUST SOME HOUSEKEEPING ITEMS BOARD. COUNCIL, WE HAVE OUR CITY ATTORNEY, DON GLYWASKY IS GOING TO BE OUT FOR A LITTLE WHILE. HE WILL NOT BE HERE TODAY WITH SOME ILLNESS AND WE ALSO HAVE OUR DIRECTOR OF OUR FINANCE DEPARTMENT, CSILLA LUDANYI, WITH US BY VIRTUALLY TODAY. SHE IS ALSO CONTRACTED COVID, SO. SHE WILL BE WITH US AND I APPRECIATE CSILLA TAKING THE TIME TO BE WITH US THIS MORNING. SAYING THAT, LET'S MOVE TO ITEM 3A, PLEASE. [3.A. Clarification of Consent and Regular City Council Agenda Items - This is an opportunity for City Council to ask questions of Staff on Consent and Regular Agenda Items (1 hour)] >> ITEM 3A. CLARIFICATION OF CONSENT AND REGULAR CITY COUNCIL AGENDA ITEMS. THIS IS AN OPPORTUNITY FOR CITY COUNCIL TO ASK QUESTIONS OF STAFF ON CONSENT AND REGULAR AGENDA ITEMS. >> VERY GOOD. LET'S START, MARIE, DO YOU HAVE ANY QUESTIONS CLARIFICATIONS. >> YOU CAN PLEAS START ON THE OTHER SIDE? >> I'LL COME BACK TO YOU IN A SECOND. BOB, ANY QUESTIONS, SIR? >> YES, I WANTED TO ACTUALLY BRING UP OUR DISCUSSION ON GARBAGE AND TRASH AND OUR INCREASE IN RATES AND CHANGES. >> WHAT ITEM IS THAT? >> ITEM 10A. >> THANK YOU. >> 10A, AND ITEM 10 A. VERY GOOD. GO RIGHT AHEAD, BOB. WHAT WOULD YOU HAVE QUESTIONS OR DID YOU WANT BRANDON TO JUST GO OVER THAT? >> NO, BRANDON CAN START. >> BRANDON, DID YOU WANT TO GIVE US AN OVERVIEW OF THIS AND THEN THERE MAY BE QUESTIONS FROM COUNCIL? >> YES, SIR. THIS WAS A FOLLOW UP TO OUR DISCUSSION AT LAST MONTH WORKSHOP MEETING WHERE WE'VE OUTLINED THAT THE SANITATION FUND IS EXPERIENCING A LOT OF INFLATIONARY PRESSURES BASICALLY DUE TO LABOR, EQUIPMENT, FUEL, AND LIKE. WE ARE PROPOSING TO INCREASE THE USER FEES AND THAT THE RESIDENTIAL WOULD GO UP $4.52, NON RESIDENTIAL WE'RE PROPOSING $17.46 TO BRING IT MORE IN LINE WITH THE MARKET RATES THAT WE'RE SEEING WELL, THIS WAS LAST YEAR'S MARKET RATES, ACTUALLY, AND ALSO TO INCREASE THE RECYCLING FEE BY $0.39. >> WELL, YOU MISSED. DID WE SAY CHURCHES BECAUSE THAT'S ONE OF THE ONES THAT I HAVE A BIG ISSUE WITH. >> CHURCHES HAVE TO REDUCE. >> YES, CHURCHES IS IN THERE AS WELL AND IT'S GOING UP A PROPORTIONAL AMOUNT TO THE RESIDENTIAL FEE, WHICH IS APPROXIMATELY 15%. IT TRACKS ABOUT THAT. >> I DON'T KNOW WHY WE WERE GIVING CHURCHES A SPECIAL RATE. I THINK THAT CALLS INTO A WHOLE LOT OF QUESTIONS AS TO SEPARATION OF GOVERNMENT AND RELIGION AND THINGS LIKE THAT. >> THAT'S THE WAY THAT THE ORDINANCE READS CURRENTLY ON THE BOOKS, AND IT PROVIDES FOR THAT, SO STAFF DIDN'T WANT TO PROPOSE ANY CHANGES THERE. THAT WAS A POLICY DECISION MADE SOME NUMBER OF YEARS AGO, PROBABLY DECADES AGO AT THIS POINT. >> CHURCHES HAVE BEEN ON THERE, BUT I'M SORRY, IF. >> LET'S GET QUESTIONS OUT. >> DOES ANY OF THIS RELATE TO OUR NEGOTIATION OR CHARGES THAT HAVE BEEN INCREASED AT THE EXCHANGE OR? >> THE TRANSFER STATION? YES. WE INCREASE THOSE TO TRY TO [00:05:06] MINIMIZE THE RATE REDUCTIONS THAT WE'RE SEEING RIGHT HERE RIGHT NOW INCREASE [OVERLAPPING] EXACTLY RIGHT, THE RATE INCREASES, SO WE TRY TO MAXIMIZE THE AMOUNT OF REVENUES THAT WE COULD GET OUT OF THAT NEW CONTRACT THAT WE NEGOTIATED IN PASS LAST YEAR IN ORDER TO TRY TO MINIMIZE THESE INCREASES THAT ARE BEFORE YOU RIGHT NOW. IF MEMORY SERVES THAT CONTRIBUTED AN ADDITIONAL APPROXIMATELY $500,000 ACCORDING TO THE STUDY THAT WE HAVE. WE ALSO ELIMINATE SCALE BACK SERVICES AS WELL, TRY TO DO A LOT OF COST CUTTING MEASURES IN ORDER TO AGAIN, MINIMIZE THESE INCREASES THAT ARE BEFORE YOU. >> IS THERE ANY COSTS ASSOCIATED THAT WE CAN IDENTIFY AS FAR AS, LIKE, THE AMOUNT OR VOLUME THAT INCREASES THROUGH TOURISM OR THROUGH [OVERLAPPING] SHORT TERM RENTALS OR THAT IT'S NOT PASSED ON TO THE CITIZENS AND MORE SHARED WITH BASICALLY WHAT WE HAVE TO SEE EACH WEEKEND? >> WELL, IF THAT'S A POLICY DECISION THAT COUNCIL WANTS US TO LOOK AT, WE CAN CERTAINLY START DOWN THAT LINE. THAT WOULD TAKE QUITE A BIT OF EFFORT FOR US TO GET THERE. I'D IMAGINE IT WOULD TAKE US PROBABLY UNTIL NEXT BUDGET YEAR AT THIS POINT. BY THE TIME WE GET ALL THE BILLING IMPLEMENTATION AND EVERYTHING ELSE DONE BECAUSE, WE COULD GO DOWN THAT ROUTE IN THE MEANTIME, THOUGH, WE'D JUST BE DIGGING A BIGGER HOLE. >> WHAT YOU COULD DO ON THE SHORT TERM IS YOU COULD DEDICATE SOME OF YOUR SHORT TERM RENTAL REGISTRATION MONEY TO OFFSET SANITATION COSTS. >> LIKE SUBDIVISIONS DO. >> YEAH. THAT'S GOING TO BE DISCUSSED COMING UP HERE, PROBABLY SEPTEMBER 12TH OR 19TH, WE'VE GOT THAT COMING UP. >> WOULD IT BE POSSIBLE FOR US TO DEFER THIS UNTIL AFTER THE SHORT TERM RENTAL DISCUSSION? >> YEAH. WE WERE JUST ASKING THAT THIS TAKE EFFECT OCTOBER 1 IS WHAT WE'RE LOOKING AT AT THIS POINT, JUST SO THAT IT ALIGNS WITH THE NEW YEAR, AND THEN WE'VE GOT GOOD BUDGET NUMBERS FOR FUTURE BUDGETING PURPOSES AS WELL. >> YOU TRY TO MAKE FISCAL DECISIONS BASED ON YOUR FISCAL YEAR, THAT'S THE PRUDENT WAY TO DO IT. >> ACCURATE NUMBERS. >> BECAUSE WE NOW WOULDN'T HAVE ANY NUMBERS. >> IF YOU'LL RECALL, THE CONSULTANT ALSO RECOMMENDED ANOTHER INCREASE FOR NEXT YEAR AS WELL, BUT WE ASKED THEM, LET'S MINIMIZE THAT. LET'S SEE WHERE WE'RE AT WITH THIS ONE BUMP SO AS TO TRY TO MINIMIZE THE IMPACT ON RESIDENTS AS WELL, AND HOPEFULLY, WE CAN GARNER ENOUGH REVENUE TO NOT BE ABLE TO HAVE TO INCREASE RATE SO MUCH NEXT YEAR. >> AS A SHORT TERM RENTAL CATEGORIZED AS A RESIDENTIAL OR A BUSINESS? >> RESIDENTIAL BUT THAT'S BY STATE.[BACKGROUND] >> OKAY. HOW IS IT THAT CENTRAL APPRAISAL DISTRICT IS ABLE TO TAX ON FURNISHINGS? >> THAT WOULD BE A QUESTION FOR YOUR STATE REPRESENTATIVE, NOT FOR US. >> WHAT I'M SAYING IS, IF ONE IS A DEFINITION BY US LOCALLY, AND THEN WE'RE ABLE TO ACTUALLY TAX IT AS A BUSINESS AS OVERLAP. >> I DON'T DISAGREE WITH YOU, BUT WE PLAY THE CARDS, WE'RE DEALT. >> I THINK IT'S A GRAY AREA AS FAR AS THE WAY THAT YOU BILL FROM AN ENTERPRISE FUND STANDPOINT AND ALSO A AVALORM TAXATION STANDPOINT, SO I'M SURE IT'S A. >> BOB, THAT THAT DISCUSSION IS COMING UP ON HOW THESE REGISTRATION MONIES WILL BE UTILIZED HERE IN THE NEXT COUPLE OF WEEKS OR SO AND THIS WILL BE A GOOD TIME TO ADDRESS SOME OF THOSE TYPES OF THINGS. YES, SIR. >> WELL, I THINK THAT'S A PERTINENT DISCUSSION IN COMBINATION WITH THIS ITEM? >> YOU COULD, THAT WOULD BE UP TO YOU THE FULL DISCUSSION ON THAT. WELL, BUT WE'LL BE IN A COUPLE OF WEEKS AND IF COUNCIL WANTS TO DEFER THAT, THAT'S UP TO COUNCIL ON THAT. I WOULD SAY THOUGH THAT IF YOU'RE LOOKING FOR DATA, WE'RE NOT GOING TO HAVE ANY DATA ON THAT. >> IT'S NOT GOING TO MOVE THE NEEDLE A WHOLE LOT BECAUSE YOU DON'T HAVE ENOUGH MONEY IN YOUR SHORT TERM RENTAL FEES TO MOVE THAT NEEDLE THAT MUCH. >> THAT'S THE ONLY UNRESTRICTED FUNDS ASSOCIATED WITH SHORT TERM RENTALS, RIGHT? >> CORRECT. YOU GIVE HALF OF IT TO THE PARK BOARD. >> PERSONALLY, THIS IS JUST ME. IF WE GO DOWN THAT ROAD, I'M GOING TO LOOK AT LONG TERM RENTALS ALSO. GO AHEAD. [00:10:03] >> I PERSONALLY THINK WE NEED TO DEFER THIS UNTIL WE HAVE THE SHORT TERM RENTAL DISCUSSION. I DON'T UNDERSTAND WHY IT WOULD TAKE A YEAR TO BE ABLE TO SEPARATE AMOUNT WHEN WE HAVE EVERY SHORT TERM RENTAL THAT'S REGISTERED, SO WE WOULD KNOW WHO THEY ARE. WE ACTUALLY ALREADY CUT BACK ON SHORT TERM RENTALS WHEN WE SAID A RESIDENTIAL PROPERTY COULD NO LONGER HAVE MORE THAN FOUR WHERE THERE WERE A NUMBER OF LARGE RENTALS THAT WERE GET HAVING SIX TRASH CANS, SO WE FISCALLY HURT OURSELVES WITH THAT DECISION. I WOULD LIKE TO DEFER THIS UNTIL WE HAVE THE DISCUSSION OF SHORT TERM RENTAL BECAUSE TO ME, IT LOOKS LIKE WE'RE COMING AT OUR CITIZENS WITH MULTIPLE DIFFERENT DIRECTIONS. AGAIN, THEY'RE DEALING THE BURDEN ON THEIR BACKS AS TOURISM AND I WOULD LIKE TO SEE US WAIT AND I DON'T KNOW WHY WE COULDN'T DO IT IN. ONCE WE HAVE IF WE'RE GOING TO TAKE IN THE REGISTRATION, THEN WE'LL HAVE IT EVEN MORE. BUT EVEN IF THE PARK BOARD IS REGISTERING, WE'LL HAVE ALL THE SHORT TERM RENTALS. >> I THINK IF WE DO THIS ON SEPTEMBER 12TH, AND YOU GUYS WILL VOTE ON IT ON OUR SECOND MEETING IN SEPTEMBER, I THINK WE'LL BE OKAY TO GET IT IMPLEMENTED IN OCTOBER IF WE NEED TO. WE'LL MARCH DOWN THAT PATH, AND WE'LL JUST HAVE TO FILL IN THE NUMBERS AS IT COMES IN, BRANDON. >> BECAUSE I WOULD LIKE TO DEFER THIS. >> I'M GOING TO TELL YOU, BASED ON THE FEES YOU'RE COLLECTING NOW, DON'T EXPECT TO MOVE THE NEEDLE ON THIS SIDE. >> BUT WE RAISED THE RATES LAST YEAR, CORRECT? >> NO. >>[BACKGROUND] WELL, WE DID RAISE THE RATE IN THE SENSE THAT WE LIMITED THE AMOUNT OF TRASH THAT PEOPLE COULD PUT OUT. IF THEY PUT OUT A LARGER AMOUNT[OVERLAPPING] OF SAY TWO BY THREE THEY GET CHARGED EXTRA. TRASH CANS, WE ACTUALLY HURT OURSELVES BECAUSE WE LIMIT THE TRASH CANS TO FOUR WHERE IT SHOULD HAVE BEEN KEPT TO YOU COULD HAVE SIX. I KNOW THE COMMENT BRYANTS ALWAYS THEN THEY SHOULD BE A BUSINESS AND LET'S TAX THEM AS A BUSINESS. I'M GOING TO SAY BEACH SIDE VILLAGE AND HOW THEY DEAL WITH THEIR ISSUES OF TRASH AND SECURITY, WHICH WE TERM RENTALS, OF WHICH THEY HAVE 67. THEY CHARGE AN ADDITIONAL 650 A YEAR REGISTRATION AND PEOPLE PAY IT. OF COURSE, ALL THEIR HOUSES ARE LARGE. BUT I JUST THINK WE REALLY NEED TO HAVE THE ONE DISCUSSION FIRST BEFORE WE HAVE THE OTHER. >> I DON'T DISAGREE WITH THAT. I JUST WANT TO MAKE SURE TO BE REALISTIC WITH YOU, YOUR SHORT TERM RENTAL FEES ARE SO CHEAP, THERE'S NOT A LOT OF MONEY THERE TO SOLVE YOUR [INAUDIBLE]. >> WE'RE NOT TALKING FEES. WE'RE TALKING A TRASH RATE FOR SHORT TERM RENTAL. >> THAT'S FINE, TOO. >> THAT'S A COMPLETELY DIFFERENT DEAL. >> WHEN I WAS TALKING ABOUT THE YEAR TIME FRAME, I'M TALKING ABOUT SO WE UPDATE THE BILLING SYSTEM, PUT IT IN THE QUEUE WITH [OVERLAPPING]. >> WE'LL HAVE TO DO A MERGE BETWEEN THE TWO. AS LONG AS YOU GUYS UNDERSTAND THAT IF WE RUSH INTO THAT, THERE COULD BE SOME ERRORS, THERE'S GOING TO BE PEOPLE THAT GET BILLED FOR SHORT TERM RENTALS, IT MAY NOT BE. >> THAT'S A WEEKLY CASE. >> YEAH, KEEP IN MIND, YOU HAVE A LOT OF PEOPLE ARE REGISTERED SHORT TERM RENTALS THAT THEY'RE NOT FULL TIME SHORT TERM RENTALS, SO YOU'RE GOING TO RUN INTO THAT. AS LONG AS YOU ALL ARE GOING INTO THIS EYES WIDE OPEN, WE'RE 100%. >> IF THEY'RE PAYING THAT PROPERTY TAX THROUGH CAT, THEN THEY'RE CONSIDERED A SHORT TERM RENTAL. >> THAT'S DATA I PROBABLY WOULD NOT HAVE ACCESS TO. >> LET ME SAY THIS, I THINK IT'S A WORTHY DISCUSSION TO HAVE AND WE NEED TO GET INTO THAT. WE'RE A LITTLE OFF TOPIC ON THE CLARIFICATION OF THIS ITEM, BUT WE CAN LOOK AT THAT AS WE COME UP HERE IN THE NEXT MEETING OR SO IF COUNCIL ELECTS TO DEFER WE SURE CAN LOOK AT THAT. MY QUESTION WELL, GO AHEAD. >> CAN I FINISH MINE.[OVERLAPPING]. GO RIGHT AHEAD. >> I STILL THINK THE INCREASED RATE ON THE CHURCHES COULD BE DIFFICULT FOR SOME CHURCHES AND CHURCHES CERTAINLY DON'T HAVE AS MUCH TRASH AS A DAY TO DAY RESIDENCE UNLESS IT'S A CHURCH WHERE PEOPLE LIVE AT, WHICH THERE'S VERY FEW OF THOSE. >> WELL, BUT YOU'RE ASKING THE RESIDENTS THEN TO SUBSIDIZE THE CHURCHES, AND I DON'T KNOW THAT THAT'S LEGAL. >> WELL, WE ALREADY DO THAT. >> I KNOW, AND IT MAY NOT BE LEGAL. WE FIND THINGS ALL THE TIME THAT PREVIOUS COUNCILS DID THAT MAY NOT BE LEGAL. >> OH YEAH [INAUDIBLE] >> OKAY. COUNCIL MEMBER RAWLINS, LET'S GET HIS QUESTIONS OUT HERE. GO RIGHT AHEAD SIR. >> THAT WAS MY FIRST ONE, IF I HAVE SOMETHING ELSE TO RELATE BACK TO. >> VERY GOOD. WE CAN, BOB. >> FIRST OF ALL, I THINK THAT'S A GREAT IDEA TO PURSUE THIS [00:15:02] THROUGH ATTACHING SOME OF THIS PIECE SHORT TERM RENTALS, BUT I DO WANT TO HEAR WHAT THE IMPACT OF THAT IS, WHAT THAT REALLY MEANS, WHAT THE PROBLEMS ARE. I'M HAPPY TO DISCUSS THAT WHENEVER YOU'LL GET ALL THAT DATA. THE OTHER THING ABOUT CHURCHES, MAYBE YOU COULD COME BACK WITH IS THAT ANSWER THE QUESTION OF IS THAT LEGAL? >> YEAH, THAT'S A DON QUESTION AND HE'S NOT HERE TODAY, THE QUESTION BECOMES AND IT MAY EVEN BE, I HATE TO USE THIS IN THE CONTEXT OF A CHURCH, IT MAY BE A MORAL ISSUE BECAUSE ANYTIME YOU REDUCE SOMEBODY'S RATE, THE COST IS WHAT THE COST IS, AND IT'S HOW YOU DIVIDE UP THE COST. YOU'RE ASKING YOUR RESIDENTS AND BUSINESSES TO SUBSIDIZE THE CHURCHES, EVEN THOUGH A LOT OF THESE CHURCHES OPERATE OTHER ACTIVITIES AT THEIR FACILITIES. I DON'T KNOW EXACTLY WHICH ONES HAVE RESIDENTIAL CANS, I KNOW MY CHURCHES ALL HAVE DUMPSTERS. >> WELL, I GAUZE WHEN WE COME BACK TO THE DISCUSSION ON SHORT TERM RENTALS, WE COULD ALSO HAVE DON HELP US WITH THAT QUESTION. >> BECAUSE IF YOU LOOK AT IT RIGHT NOW, USUALLY, MOST OF OUR RATES ARE CLASSIFIED AS RESIDENTIAL, NON RESIDENTIAL AND SO THE CHURCHES WOULD FALL IN A NON RESIDENTIAL, WHICH WOULD BE SUBJECT TO THE COMMERCIAL FEES. BUT THEY'RE ACTUALLY GETTING A DISCOUNT RIGHT NOW OVER THE COMMERCIAL RATE, SO THEY ARE RIGHT IN THE MIDDLE. >> WE DON'T DISAGREE THAT THEY PROBABLY DON'T GENERATE THE TRASH OF A COMMERCIAL BUSINESS, BUT THEY SHOULD AT LEAST PAY THE RESIDENTIAL RATE. >> MR. COOK, I THINK WHAT YOU'RE GETTING TO IS MAYBE THERE'S AN OPPORTUNITY TO LOOK AT HOW WE DO CLASSIFICATIONS BEYOND JUST A RESIDENTIAL AND NON RESIDENTIAL, THAT YOU ADD ADDITIONAL STRATIFICATION TO THE TYPES OF PERMITTED USES THAT WE HAVE ON PROPERTIES. SOMETHING TO KEEP IN MIND WHEN WE COME BACK TO THIS. >> THAT'S A POSSIBILITY. THANK YOU. >> I HAD A COUPLE OF MORE QUESTIONS. >> IS IT ON THIS SANITATION? >> YEAH. >> GO RIGHT AHEAD. >> JUST TO CLARIFY, THE INCREASE IN RECYCLING, $0.39 IS PART OF THE BILL. IT WOULD BE ADDED TO THE $4.52 RESIDENTIAL PART, RIGHT? >> NO, THERE'S A SEPARATE FEE FOR RECYCLING ON YOUR WATER BILL. >> FOR A DROP OFF RECYCLING? >> AND THAT'S PART OF THIS. >> WHEN WE GO TO THE RECYCLING CENTER OVER THERE ON 61ST, DO WE PAY A FEE TO DROP IT OFF? >> NO, YOU PAY IT ON YOUR WATER BILL RIGHT NOW. THERE'S A FEE ON YOUR WATER BILL FOR RECYCLING, AND WE'RE PROPOSING GOING UP ON IT BY $0.39. THAT'S JUST TO COVER OUR COST OUT THERE. >> THE TOTAL INCREASE FOR FOR LET'S JUST SAY RESIDENTIAL ONE OR TWO CARDS WOULD BE $4.52 PLUS $0.39. >> LESS THAN $5. >> LESS THAN $5 A MONTH, WOULD BE THE TOTAL INCREASE TO SOMEBODY, TYPICAL RESIDENT, RIGHT? >> WE'RE STILL WAY LOW. >> THAT'S RIGHT. >> BECAUSE ALSO THAT DOESN'T COVER THE ENTIRE COST OF THE RECYCLING CENTER AT THIS POINT. WE'RE LOOKING AT OTHER MEASURES TO BE ABLE TO TRY THAT. >> IT LEADS TO MY NEXT QUESTION. DIDN'T WE OFFER CURBSIDE RECYCLING TO SENIORS AND DISABLED? >> WE STILL DO. >> WE STILL DO. IS THAT COST ROLLED INTO THAT ALSO? >> IT'S ROLLED IN THE RECYCLING FEE, YES. >> THAT'S ROLLED INTO RECYCLING. THEN THE RAFTELIS REPORT RECOMMENDS FURTHER REVIEW OF COST RECOVERY METHOD FOR CITY RECYCLING FEES. CAN YOU EXPLAIN THAT TO ME? I'M ASSUMING THAT THAT WOULD HAVE SOME IMPACT ON THE REDUCTION OF INCREASES GOING FORWARD. >> CORRECT. YEAH, BECAUSE THE TRUE COST, IF WE WERE TO TRUE UP THE COST FOR THE RECYCLING CENTER RIGHT NOW, IT WOULD BE MORE LIKE $5 OR SO. RIGHT NOW, THE WAY THAT IT'S BILLED IS ON A PER METER BASIS, PER WATER METER, EVERYBODY GETS A RECYCLING FEE. AS PART OF THIS WHOLE STUDY, WE FOUND OUT THAT LARGE MULTI FAMILY PROPERTIES THAT ONLY HAVE ONE METER ARE ONLY RECEIVING A BILL FOR ONE OF THE RECYCLING FEES, AND SO THAT'S ANOTHER THING WE NEED TO GO BACK AND SHORE UP IN THE UTILITY BILLING SYSTEM AND TO TRY TO ALLOCATE THOSE COSTS PER UNIT, AND MAYBE INSTEAD OF [OVERLAPPING]. >> THE SAME CONCEPT AND THE ISSUE APPLIES WITH DRAINAGE AS WELL. IT'S JUST THAT WE REALLY ONLY HAVE ONE WAY TO BILL PEOPLE AND THAT'S THROUGH THEIR WATER BILL. WE TRY TO TIE THINGS AS BEST WE CAN. WELL, EVERYBODY HAS WATER, BUT WHETHER THEY HAVE IT BY METER OR NOT, BECAUSE WE HAVE ALL THESE, ESPECIALLY THESE OLDER COMPLEXES THAT HAVE ONE METER THAT FEEDS MULTIPLE UNITS AND ALL THOSE TYPE OF THINGS. THOSE ARE CHALLENGES FOR US TO CORRECT. >> WAS THAT ON THE RECYCLE METER BILL TOO? I MEAN, THE SPRINKLING BILL? >> NO. THAT'S THE PURPOSE OF THE IRRIGATION METERS, YOU SHED THOSE LITTLE FEES. >> GO AHEAD. >> YES. ANY FURTHER QUESTIONS ON 10A. ALEX? >> I DO. I THINK I HEARD YOU, SO TELL ME IF I MISUNDERSTOOD. WERE YOU ASKING A QUESTION ABOUT VOLUME FROM SHORT TERM RENTALS, VOLUMES OF TRASH VERSUS VOLUMES OF TRASH FROM RESIDENTS? DID WE ANSWER THAT? [OVERLAPPING] YOU JUST COMMENTED ON IT. >> I THINK IT WAS IMPLIED. >> YEAH. SHORT TERM RENTALS, PARTS OF THE YEAR HAVE WAY MORE TRASH AND PARTS OF THE YEAR HAVE WAY LESS TRASH. [00:20:02] >> IS THERE A WAY TO HANDLE THAT? I'M JUST CURIOUS. I THOUGHT IT WAS A GOOD. YEAH. >> NO. ALEX? >> WHAT'S THE BIGGEST BURDEN THAT WE SEE ON THAT FUND? >> ON IRRIGITATION? >> YEAH. WHAT'S THE BIGGEST BURDEN? >> RIGHT NOW, IT'S BEEN THE INCREASES WITH VEHICLES HAVE BEEN ONE OF THE BIGGEST ONES. ALSO, CDL DRIVERS. ALL OF OUR DRIVERS HAVE CDL LICENSES AND THE DEMAND FOR CDL DRIVERS HAVE SHOT THROUGH THE ROOF. >> THAT'S BEEN THE HARDEST THING. WE WORK OUR VEHICLES REALLY HARD BECAUSE OF THE GEOGRAPHY THAT WE OPERATE UNDER. WE LOVE OUR 32 MILES OF BEACH, BUT IT WOULD BE SO MUCH EASIER IF WE WERE SHAPED LIKE SOME OF THESE OTHER CITIES THAT ARE NICE AND COMPACT. WE LOG A LOT OF MILES ON OUR VEHICLES AND A LOT OF HOURS AND A LOT OF LIFTS. >> YEAH, VERY CORROSIVE ENVIRONMENT THAT WE OPERATE IN. >> THAT'S ROUGH. >> WE PICK UP A LOT MORE STUFF THAN WHAT OTHER PEOPLE PICK UP, WHICH IS ROUGH ON THE EQUIPMENT. >> SO THE EQUIPMENT IS PRETTY MUCH THE BIGGEST LIMITING FACTOR. >> FUEL, EQUIPMENT, AND PEOPLE. THOSE ARE YOUR THREE BIGGIES. THAT'S REALLY ALL THERE IS IN THERE. >> INSURANCE COSTS AND THINGS LIKE THIS WILL AFFECT EVERYBODY, ACROSS EVERY FUND. >> BUT I WOULD SAY PROBABLY OF THOSE, THE BIGGEST IS GOING TO BE THE CDL GUYS BECAUSE WE SHUFFLE THOSE AROUND AND LOSE THEM ON A REGULAR BASIS. [OVERLAPPING] IF ONE OF THE SCHOOL DISTRICTS GOES UP ON THEIR RATES, I LOSE ALL MY CDL DRIVERS. I GO UP, THEY LOSE THEIRS. IT'S A SMALL POOL AND WE COMPETE FOR THEM. BUT JUST ABOUT EVERYTHING WE DO REQUIRES A CDL. >> WHAT IS A CDL? >> COMMERCIAL DRIVERS LICENSE. >> ANY FURTHER QUESTIONS? >> I DO HAVE ONE MORE. >> I'D ENCOURAGE IF ANYBODY'S LISTENING, IF YOU HAVE A CHILD THAT WANTS TO DO THAT, ENCOURAGE THEM TO GET A CDL. IT IS HIGHLY VALUABLE. >> ALEX, ANY FURTHER QUESTIONS ON THAT? MARIE? >> ON THIS SUBJECT. THE TRASH DEPARTMENT OWNS THEIR VEHICLES? >> THE CITY OWNS THOSE VEHICLES, YES. >> THE CITY OWNS THEM. BUT IT'S UNDER THEIR BUDGET? >> YES. >> THEN REPAIRS ARE UNDER THEIR BUDGETS AS WELL. DO THEY ACTUALLY PAY THE GARAGE DEPARTMENT FOR THAT? >> THEY PAY A GARAGE FEE. THAT COVERS THEIR FUEL, THEIR INSURANCE, AND THE MAINTENANCE. >> THEY'RE AN ENTERPRISE FUND. >> THEY'RE AN ENTERPRISE FUND. THAT'S RIGHT. THERE'S NO TAX MONEY THAT GOES INTO SANITATION WHATSOEVER. >> NO TAX MONEY AT ALL. >> OR WASTEWATER. >> OR WASTEWATER OR WATER. >> I HAVE A QUESTION ABOUT IT, BUT LET'S GO TO DAVID'S. >> YOU JUST SET ME UP PRETTY NICELY. KNOWING THAT THIS IS AN ENTERPRISE FUND, I NOTED THAT, JUST TO MAKE SURE I UNDERSTAND THIS CORRECT. ASSUMING THAT WE HAVE NO CHANGE IN THE RATES, THE ENTERPRISE FUND IS ESTIMATED TO OPERATE IN A DEFICIT STARTING IN FISCAL YEAR 2025, IS THAT CORRECT? >> CORRECT. >> THANK YOU. >> I'M GOING TO FOLLOW UP ON THAT QUESTION. IF BEING AN ENTERPRISE FUND FOR THOSE THAT MAY BE WATCHING, THAT MEANS THAT THAT TRASH DEPARTMENT, THAT SANITATION DEPARTMENT, HAS TO MAKE MONEY TO SUPPORT THEMSELVES. AS MENTIONED, THEY GET NO TAX MONEY TO RUN THIS OPERATION. >> THAT'S NOT UNUSUAL, BECAUSE THE REASON THEY'RE SET UP THIS WAY IN GALVESTON, TRASH, WATER, AND SEWER, IS BECAUSE IF YOU GO TO MOST CITIES, AND THIS IS WHERE YOU REALLY GET CONFUSED WHEN YOU LOOK AT OUR TAX RATE. OUR TAX RATE AND ALL OF OUR STUFF IS ALL IN, BECAUSE WE DO IT ALL. BUT WHEN YOU START GOING OFF TO OTHER CITIES, THEIR TRASH IS PRIVATE, YOU GET A SEPARATE BILL FOR TRASH. WATER MAY BE UNDER A MUD OR A WCID. YOUR SEWER MAY BE UNDER A DIFFERENT FEE. OURS ARE ALL LUMPED TOGETHER BECAUSE WE DO ALL THAT, BUT WE OPERATE THEM AS SEPARATE BUSINESSES FOR THAT PURPOSE. YOUR TAX DOLLARS REALLY ONLY FUND GENERAL FUND ACTIVITIES, WHICH IS POLICE AND FIRE, WHICH CONSUMES THE MAJORITY OF YOUR TAX MONEY, AND THEN A LITTLE BIT GOES TO TRANSIT, AND THE REST OF IT GOES TO PARKS. STREETS AND TRAFFIC GETS THAT 8%. >> WE'VE GOT 8% ON DEBT SERVICE. >> A LITTLE BIT EXTRA, BECAUSE 8% CAN'T BE USED FOR GENERAL OPERATIONS, SO ONLY FOR CAPITAL. IT GOES TO THINGS LIKE YOUR TRAFFIC AND YOUR STREET SIGNS AND THINGS LIKE THAT. >> WELL, LET ME FOLLOW UP ON MY THOUGHT THAT BEING AN ENTERPRISE FUND, WE HAVE BEEN RUNNING A LITTLE BIT AS A DEFICIT NOW, IS THAT RIGHT? >> CORRECT. >> THE SURVEY IS SHOWING THAT AS THE YEARS GO BY, WE'RE GOING TO BE DIGGING A BIGGER HOLE ON THIS. >> PROBABLY SOONER THAN LATER BECAUSE OF THE STORM, BECAUSE WE'RE FRONTING ALL THIS OVERTIME. FIMA, THEY'RE GOOD ABOUT REIMBURSING US, BUT THEY'RE NOT SWIFT. >> CORRECT. MY QUESTION IS THAT, SAY THIS MOTION IS TURNED DOWN ON INCREASING THESE RATES. BRIAN, WALK ME THROUGH QUICKLY, WHAT DOES THAT MEAN YOU WOULD CUT SOME SERVICES THERE? [00:25:03] >> THERE'S REALLY NO SERVICES HERE TO CUT, MAYOR. WE PICK UP ONE DAY A WEEK AND WE PICK UP BRUSH. AT THAT POINT, YOU START SUBSIDIZING IT WITH YOUR TAX MONEY. >> SO YOU'D HAVE TO TAKE MONEY OUT OF THE GENERAL FUND AND MOVE IT INTO THE SANITATION DEPARTMENT. >> THAT'S CORRECT. >> PROBABLY IF WE'RE DOING THIS PROPERLY, WE PROBABLY SHOULD HAVE BEEN DOING THAT FOR A LITTLE WHILE NOW TO KEEP THIS THING SOLVENT. YES, MA'AM. >> WELL, I WOULD BEG TO DIFFER THAT THAT WOULD BE THE ONLY WAY THAT YOU COULD HANDLE IT, BECAUSE I THINK ONCE WE GET DEEPER INTO THE SHORT TERM RENTALS AND HOW WE MAY ADJUST, PLUS STRAIGHT OUT, WE COULD GO BACK TO ALLOWING PEOPLE TO HAVE SIX RESIDENTIAL CANS THAT PEOPLE WERE PAYING THE INCREASES FOR, THAT HAVE ACTUALLY CAUSED ISSUES ON THE OTHER SIDE, AND PROBABLY MAKE OUR TRASH BIN'S JOB MORE DIFFICULT BECAUSE THEY'RE HAVING TO PICK UP BAGS NOW INSTEAD OF WHAT WAS IN THE CAN. I THINK IN THE IMMEDIATE FEATURE, WE CAN BALANCE IT OUT, AND THEN AS WE ADDRESS THE SHORT TERM, WE CAN LOOK AT IT, AND THEN ADDRESS WHAT THE ACTUAL RATE INCREASE WOULD [OVERLAPPING]. >> I DON'T DISAGREE THAT WHETHER WE GO TO FOUR OR SIX CANS, THAT IS NOT GOING TO HAVE A FISCAL EFFECT ON ANY OF THIS. IF WE NEED TO ADD SIX CANS, THAT'S A POLICY ISSUE AND WE CAN DO THAT. BUT TO CONVOLUTE THAT WITH FISCAL AFFAIRS IS NOT APPROPRIATE. >> THAT'S CORRECT. >> I'M JUST SAYING ONCE WE ADDRESS THE SHORT TERM SIDE, IF WE DO THIS AT THE END OF SEPTEMBER OR OCTOBER, IT'S NOT GOING TO HAVE A FISCAL IMPACT. >> TECHNICALLY, YOU HAVE A MORE POSITIVE FISCAL IMPACT DOING IT THE WAY WE'RE DOING IT BECAUSE THE CANS ARE CHEAPER. THAT'S WHY I'M TELLING YOU, DON'T CONVOLUTE THOSE TWO THINGS. IF WE NEED TO MAKE IT SIX CANS FOR RESIDENTIAL, WE CAN MAKE IT SIX CANS FOR RESIDENTIAL, THAT'S NOT AN ISSUE. BUT THE THING IS, DON'T THINK THAT'S GOING TO SOLVE YOUR FINANCIAL ISSUES. >> WHICH I DON'T. I WAS ALSO REFERRING TO CHARGING SHORT TERM RENTAL A DIFFERENT RATE SCALE THAN RESIDENTIAL. >> LET'S WIND THE SUBJECT UP, BUT JUST ONE COMMENT. WE'VE GOT TO BE, IN MY MIND, BE VERY CAREFUL OF MAKING DECISIONS BASED ON ANECDOTAL INFORMATION. WE NEED TO GET DATA BEFORE WE START SHOTGUNNING THESE THINGS, AND NEXT THING YOU KNOW, GET INTO SOMETHING THAT IS MORE INVOLVED THAN WE WANT TO BE INVOLVED WITH. ANY OTHER QUESTIONS ON THIS ITEM? YES, SIR. >> DO WE HAVE OLD WORKSHEETS ON THE COST BENEFIT ANALYSIS OF PRIVATIZING TRASH? >> THAT'S A CHARTER ISSUE, SO WE WOULDN'T DO COST BENEFIT ANALYSIS ON THAT UNLESS DIRECTED TO DO SO BY COUNCIL. >> BUT IN THE PAST, I KNOW WE EXPLORED IT. IS THAT SOMETHING THAT'S LIKE ON A SHELF SOMEWHERE THAT WE COULD REVIEW? >> IT WOULDN'T BE RELEVANT IN TODAY'S WORLD ANYWAY, I DON'T THINK. IT HADN'T BEEN DONE SINCE I'VE BEEN HERE. >> I WOULD SAY THE ONLY THING THAT COMES TO MIND FOR ME, ALEX, IS, WE DID DISCUSS HAVING RECYCLING BY A PRIVATE COMPANY, AND I THINK WE SENT SOME BIDS OUT OR SOMETHING OF THAT. >> WHAT WE DID WAS, IS WE'RE THE ONLY CITY THAT ALLOWS MULTIPLE COMMERCIAL HAULERS ONTO THEIR FRANCHISE AREA. THAT WAS BROUGHT TO COUNCIL AS A SUGGESTION, WHICH WOULD HAVE GREATLY REDUCED THE RATES FOR THE RESIDENTS, AND IT WAS REJECTED AT THAT TIME, BECAUSE YOU WOULD HAVE GONE TO ONE COMMERCIAL HAULER, THAT ONE COMMERCIAL HAULER WOULD BE BID OUT BY THE CITY TO ENSURE EVERYBODY PAYS A FAIR AND LOW RATE, AND THEN THEY WOULD PAY THE CITY A FRANCHISE FEE, WHICH WOULD OFFSET THESE COSTS. INSTEAD, WHAT WE'VE DONE IS, WE'VE JUST ALLOWED EVERYBODY TO COME AND [OVERLAPPING]. >> YEAH, EXACTLY. WHICH IS FINE. SOME WOULD ARGUE THAT IT SAVES MONEY. I THINK THAT SOME OTHER BUSINESSES WOULD TELL YOU OUR BIDDED PRICES WERE MUCH LOWER THAN WHAT THEY'RE PAYING NOW, AND THEY WOULDN'T HAVE BEEN SUBJECT TO ALL THESE SURCHARGES AND EVERYTHING THAT ENDED UP HAPPENING. >> YEAH, VERY MUCH SO. YES, MA'AM. >> TO YOUR COMMENT ABOUT THE PREVIOUSLY WHEN IT WAS ON COUNCIL. I DON'T THINK I WAS ON COUNCIL WHEN THAT HAPPENED. >> YOU WEREN'T. >> I THINK IT GOT DRAGGED OUT UNTIL I WASN'T ON COUNCIL, LIKE MANY THINGS. BUT I KNOW COMMERCIAL BUSINESSES WERE VERY RESISTANT TO THAT IDEA BECAUSE THEY FELT LIKE IT CREATED A MONOPOLY AND MEANT THEY WOULD PAY MORE. >> THAT'S NOT TRUE BECAUSE IT WOULD BE IT WOULD BE COMPETITIVELY BID. >> WE'RE GETTING OFF TOPIC ON THIS. BUT WE HAVE ITEM 10A. >> NOW EVERY OTHER CITY DOES IT. WE'RE TRULY AN ANOMALY IN THAT AREA. IN ADDITION TO BEING A 50,000 POPULATION CITY OPERATING OUR OWN SANITATION DEPARTMENT, WHICH ALSO MAKES US AN ANOMALY, AS COUNCIL MEMBER PORRETTO POINTED OUT. >> YEAH. LET'S MOVE ON FROM HERE. IT'LL BE ON OUR AGENDA THIS AFTERNOON FOR ACTION. ANY OTHER THINGS, BOB, THAT YOU HAD, SIR, YOU WANTED TO PUT IN. >> NOT ON THAT TOPIC. >> ANY OTHER TOPICS YOU HAD? >> NOT AT THE MOMENT. >> ALL RIGHT. DAVID? >> ITEM 8A. >> YES, SIR. >> ON THE PAST TOPIC. [00:30:03] >> NO, 8A. >> OH, 8A. MORNING, CATHERINE. >> HI, GOOD MORNING. YES, SIR. >> RELATED TO THE USE OF CAR LOTS, AND THE FIRST ITEM IN THERE ON THE BROADWAY DESIGN STANDARDS OF PASSENGER MOTOR VEHICLE SALES OR RENTALS, WE'RE CHANGING THAT TO REMOVE THE REQUIREMENT THAT THEY OPERATE WITHIN AN ENCLOSED STRUCTURE. IS THAT CORRECT? >> FOR PASSENGER MOTOR VEHICLE SALES OR RENTAL? >> YES. IT SAYS PROPOSED CHANGES, DELETE PASSENGER MOTOR VEHICLE SALES OR RENTAL. THE INTENTION, IT SAYS IS, OF THIS CASE, IS TO PROHIBIT THE SALES ON BROADWAY? >> RIGHT. YES. I'M SORRY, CATHERINE GORMAN, THE ASSISTANT DIRECTOR OF THE DEVELOPMENT SERVICES DEPARTMENT. WE MADE A CHANGE SEVERAL MONTHS AGO IN ORDER TO PROHIBIT PASSENGER MOTOR SALES AND RENTAL ON BROADWAY. BUT THERE'S THIS RESIDUAL REGULATION THAT REQUIRES IT. IT USED TO BE REQUIRED TO BE IN A BUILDING, BUT NOW IT'S PROHIBITED. WE'RE JUST CLEANING THAT UP. WE'RE JUST OMITTING THAT BECAUSE IT'S NO LONGER ALLOWED AT ALL. >> NEW ONES? >> NEW ONES, YES. OF COURSE, EVERYTHING THAT'S THERE IS GRANDFATHERED. >> YEAH, I JUST WANTED TO MAKE SURE I UNDERSTOOD THAT. JUST A POINT OF MAYBE I NEEDED TO JUST TELL THE MARSHAL'S OFFICE ABOUT THIS. I DON'T THINK THAT THOSE OPERATORS THAT ARE CURRENTLY OPERATING SHOULD BE ALLOWED TO PARK THEIR VEHICLES FOR SALE ON BROADWAY. MAYBE THAT'S A MARSHAL THING. >> YEAH, THAT WOULD BE A MARSHAL THING. >> ALL RIGHT. >> THAT'S GOING TO BE A GRAY AREA ON THAT BECAUSE THEY, I'LL EXPLAIN IT TO YOU. >> ALL RIGHT. >> WE'VE BEEN THERE, BUT I'LL TELL YOU ABOUT IT. >> MARIE HAD A QUESTION. >> DOES THIS DOESN'T INVOLVE GOLF CARTS, RIGHT? >> NO, GOLF CARTS ARE REGULATED SEPARATELY. WE'RE NOT MAKING ANY CHANGES TO GOLF CARTS UNDER THIS. >> IN SOME OF IT, THE LANGUAGE WAS VAGUE TO JUST MOTOR VEHICLE. >> WE HAVE PASSENGER MOTOR VEHICLE SALES, WHICH IS CARS, AND THEN WE HAVE A SEPARATE LAND USE FOR GOLF CARTS. >> WE ACTUALLY ALLOW THEM TO BE ON THE SIDEWALK WITH AN LTU. >> WITH AN LTU. THAT'S WHAT I WANTED TO MAKE SURE IT WASN'T AFFECTING THAT. >> BOB, SAME TOPIC, THIS IS IN REGARD TO THE SECTION CALL A RESTAURANT DRIVE IN THROUGH LIMITED STANDARDS. CURRENT REGULATION LIMITS CURB CUTS ON BROADWAY, AND YOU'RE PROPOSING TO REMOVE THAT LIMITATION, BUT IT'LL STILL REMAIN FOR THE SEAWALL. >> YES, THE CHANGE IS PROPOSED ONLY FOR BROADWAY. >> COULD YOU EXPLAIN TO ME A LITTLE BIT WHAT'S BEHIND THE REASONING FOR THAT? THE ONLY REASON I'M ASKING IS JUST BECAUSE BROADWAY IS ONE OF THE MOST DANGEROUS STREETS IN THE CITY, AND I DON'T KNOW, IT SEEMS LIKE MORE CURB CUTS MIGHT EXACERBATE THAT. I DON'T KNOW. >> THE PLANNING COMMISSION SPENT SEVERAL MONTHS TALKING ABOUT BROADWAY REGULATIONS AND DECIDED TO MAKE CURB CUTS A LITTLE BIT MORE FLEXIBLE ON BROADWAY, AND SO THIS IS A COMPANION CASE IN ORDER TO MIRROR THAT CHANGE. >> YEAH. AN ANECDOTAL EXAMPLE IS MCDONALD'S ON 53RD AND BROADWAY WAS ALLOWED TO HAVE TWO CURB CUTS ON BROADWAY. THEY CHOSE TO CLOSE ONE OF THOSE CURB CUTS. THAT IS CREATING A HUGE TRAFFIC ISSUE FOR US ON 53RD AND BROADWAY. LESS CURB CUTS MAY NOT NECESSARILY MAKE IT SAFER, AS WE'RE FINDING OUT. [LAUGHTER]. >> THERE'S STILL THE LIMITATION OF THE CURB CUT DISTANCE TO THE CORNER AND ALL OF THAT. >> YEAH, AND THAT COULD BE AN ISSUE THERE TOO, BUT THAT'S OFF TOO. >> ONE MORE QUESTION. WOULD THERE BE ANY MORE ACTION REQUIRED FOR US FROM THE BROADWAY DESIGN STANDARD MODIFICATIONS THAT WERE PROPOSED? >> THIS IS THE ONLY CHANGE THAT WE'RE PROPOSING. >> ANY MORE COMING IN THE FUTURE? >> NO, THERE'S NOTHING IN THE PIPELINE. >> I HAVE A QUESTION. >> GO RIGHT AHEAD. >> ON THE BROADWAY DESIGN STANDARDS, BACK TO WHAT COUNCIL MEMBER FINKLEA WAS SAYING, I HAD RESIDENTS TO CALL REGARDING CARS PARKED ON [OVERLAPPING]. >> CAN YOU TALK A LITTLE LOUDER. >> CLOSE TO THEIR HOMES OR CELL. >> I KNOW YOU SAID THOSE WHO EXIST NOW WILL BE GRAND FILED. DOES THAT MEAN THAT THEY WILL CONTINUE TO BE ALLOWED TO PARK THOSE CARS ON BROADWAY FOR SALE CLOSE TO RESIDENT? >> WELL, THIS IS JUST REGULATING WHAT HAPPENS ON PRIVATE PROPERTY. THE PARKING OF THE CARS OUTSIDE OF THE PRIVATE PROPERTY ON THE RIGHT OF WAY AS A CITY MARSHALL ISSUE. >> WE HAVE AN ORDINANCE FOR THAT. THE QUESTION BECOMES WHETHER THE CAR IS BEING SOLD OR WHETHER THEY ARE SERVICING IT, THE MARSHALL COULD PROBABLY GIVE YOU A FULL RUNDOWN ON THE ISSUES WE'VE HAD WITH THAT. WE'RE VERY FAMILIAR WITH THE ISSUE AND WE'RE TRYING TO WORK THROUGH THOSE DOWN TO GET IT RESOLVED. >> I GOT SEVERAL WEEKS ON REGARDING THAT? >> YES, MA'AM. WE GET THEM ON A REGULAR BASIS AS WELL. [00:35:02] >> ANY FURTHER QUESTION, DAVID? ANYTHING ELSE? >> ITEM 10C. >> 10 C. >> AS IT RELATES TO THIS PROPOSED CHANGE IN CLARIFICATION FOR ARTS AND HISTORIC PRESERVATION, IN PARTICULAR I'D LIKE TO BRING UP THE IDEA OF IF WE'RE GOING TO MAKE THIS CHANGE RIGHT NOW, I'D LIKE FOR COUNCIL TO CONSIDER THE IDEA OF PROPOSING A TIME LIMITATION ON FUNDING FOR THESE APPLICANTS. THE IDEA IS MAYBE RATHER THAN THIS FUNDING BECOMING A LINE ITEM ON THESE ORGANIZATIONS BUDGET, WHERE THEY DEPEND ON IT YEAR AFTER YEAR THAT WE ARE GOOD STEWARDS OF TAXPAYER DOLLARS AND WE USE THOSE FUNDS IN ORDER TO HELP THEM DEVELOP AND GROW, AND THEN THEY ROLL OFF FOR A PERIOD OF TIME AND THEN COME BACK. I DON'T THINK THAT IT'S REALLY A GOOD USE OF TAXPAYER DOLLARS TO JUST CONTINUALLY FUND INFINITUM AN ORGANIZATION THAT BECOMES ATTACHED TO THE CITY. >> WHAT WAS THE VERY BEGINNING? I APOLOGIZE. >> I WOULD LIKE TO PROPOSE A TIME LIMITATION ON FUNDING FOR THE APPLICANTS. IN OTHER WORDS, A PERIOD OF 5-8 YEARS THAT THEY RECEIVED FUNDING THROUGH ARTS AND HISTORIC PRESERVATION. THE PREMISE BEHIND THAT, I'LL STATE IT AGAIN IS THAT YOU GOT EVERYTHING ELSE? TWO IDEAS. ONE IS A TIME LIMITATION ON FUNDING OF A PERIOD OF 5-8 YEARS AND THEN HAVE THEM ROLL OFF FOR A PERIOD OF FIVE YEARS BEFORE THEY COULD APPLY AGAIN TO ARTS AND HISTORIC PRESERVATION. >> WELL, AND I THINK DAVID, YOU BRING UP A GOOD POINT. WE'RE GOING TO HAVE ANTOINETTE WITH THIS MORNING HERE TO TALK A LITTLE MORE ABOUT THOSE TYPES OF SUBJECTS, ESPECIALLY THE USE OF HOT WITH ARTS AND HISTORIC PRESERVATION BOARD ON THAT AND I THINK YOU BRING UP A GOOD POINT THOUGH, AND THAT NEEDS TO BE DISCUSSED MORE AND THAT'LL BE SOMETHING THAT WE COULD GIVE DIRECTION TO ARTS AND HISTORIC PRESERVATION BOARD IF WE FELT TO BE APPROPRIATE. >> WHEN WILL YOU BE DISCUSSING THAT ITEM? >> THIS MORNING. >> UNDER THE BUDGET? >> LET ME SEE HERE. >> IT'S A AGENDA. >> YEAH, 3D. >> GOT YOU. MY APOLOGIES. >> NO, IT'S NO WAY OF KNOWING THAT. >> THANK YOU. I HAVE NO OTHER QUESTIONS ON THE AGENDA. >> I HAVE A FEW 8B. THIS IS JUST A FEW CLARIFICATIONS FOR ME. IT SAYS THAT THE THRESHOLD WAS MET BY THE WINDOW REPLACEMENT PART OF THIS PROJECT, BUT IS THE THRESHOLD INTENDED TO BE JUST ONE SINGULAR PART OF THE BUILDING COST OR THAT THE OVERALL BUILDING COST? >> THE THRESHOLD IS 50% OF THE APPRAISED VALUE OF THE STRUCTURE ACCORDING TO THE CENTRAL APPRAISAL DISTRICT. THE WINDOW WORK ON THIS PROJECT IS SO EXTENSIVE THAT IN THIS CASE, ONE ITEM DID MAKE IT. >> BUT GENERALLY SPEAKING, IT WOULD BE THE OVERALL REHABILITATION COST. >> GENERALLY SPEAKING, IT'S THE OVERALL REHABILITATION COST. >> THEN IS THE OWNER OF THIS ALSO ABLE TO TAKE ADVANTAGE OF THE 20% HISTORIC TAX CREDITS IN THIS PROJECT? >> YEAH. THERE ARE FEDERAL AND STATE TAX CREDITS THAT THEY ARE ELIGIBLE FOR AND I THINK THEY ARE SEEKING THEM. >> GREAT. WELL, THIS IS A GREAT PROGRAM I THINK TO ENCOURAGE PROTECTION OF OUR HISTORIC RESOURCES. I REALLY LIKE THAT AND THEN I WANT TO GO TO 10B. IF I COULD THANK YOU, CATHERINE 10B. LET'S SEE. THE REPORT SAYS THAT THE CITY SHOULD LEVERAGE THE USE OF DATA PRODUCED FROM ITS MARK SOLUTIONS INITIATIVE TO EVALUATE SYSTEM PERFORMANCE AND TRENDS, AND ALSO THE CITY SHOULD UPDATE THE RATE FOR FY-2026 TO INCORPORATE FUTURE CAPITAL NEEDS. I WAS WONDERING IF YOU COULD EXPLAIN TO ME HOW THIS SYSTEM AND THE DATA WOULD HELP DECREASE FUTURE RATE INCREASES. >> FOR THE AMI SYSTEM? IT REALLY DIALS IN THE ACCURACY OF OUR WATER USAGE UNDER THE OLD METERS. THEY WERE MORE MANUAL AND THEY SLOW DOWN AND THEY DON'T CAPTURE AS MUCH WATER USAGE BECAUSE YOUR WASTEWATER RATE IS BASED ON YOUR WATER USAGE. IT GOES HAND IN HAND PER CUBIC FOOT. AS WITH THIS TECHNOLOGY THAT THEY HAVE THERE, IT GETS DOWN TO 99 POINT SOMETHING PERCENT ACCURACY ON THERE, AND IT DOESN'T SLOW DOWN. IT'LL BREAK, BUT IT WILL NOT SLOW DOWN, AND SO YOU HAVE A MORE ACCURATE READING ON THERE AND SO YOU DON'T HAVE TO INCREASE YOUR RATES DUE TO INACCURATE METER. >> THE ALLOCATION IS MORE ACCURATE. >> WE FEEL LIKE IF WE CAN BETTER TRACK AND KNOW EXACTLY WHAT OUR CONSUMPTION IS AND THINGS LIKE THAT, WE'LL KNOW EXACTLY, WE'LL ALSO BE ABLE TO DETECT LEAKS FASTER WHICH COSTS MONEY AND ALL THOSE OTHER. >> ALSO THAT REPORT SAYS THAT THE PROPOSED RATES REFLECT THE CONTRIBUTION TO OPERATING RESERVE. IT ALSO SAYS THAT WE DON'T HAVE A DEDICATED OPERATING RESERVE TO THESE TWO UTILITIES. ARE THEY REFERRING TO OUR CITY 120 DAY [00:40:03] RESERVE OR ARE THEY REFERRING TO A NEW DEDICATED RESERVE FOR UTILITIES? >> THAT SENTENCE MAY HAVE GOTTEN BY ME. WE HAVE FUND BALANCE IN THERE. >> IN OUR COMBINED UTILITY FUND WE DO ON THE WASTEWATER SIDE, IT'S LOW AS WELL, THOUGH WATER HAS A SUBSTANTIAL ONE ON ITS SIDE OF THE EQUATION, BUT THEY'RE ALL ONE FUND, SO THEY OPERATE UNDER THERE. I HAVE TO GO BACK AND CHECK THE NUMBER OF DAYS IT'S AT RIGHT NOW. >> YOU PUT THE RESERVE FUND NUMBER OF DAYS? >> YES. EVERYTHING IS LOW RIGHT NOW BECAUSE LIKE WE USE THAT FUND HEAVILY, WE WERE MANUALLY PUMPING ALL THESE LIFT STATIONS AFTER BERYL BECAUSE OF THE LACK OF POWER FOR SO LONG. WE WERE EXPENDING A LOT OF MONEY OUT OF THAT. >> WHAT'S THE REIMBURSEMENT RATE ON THAT? >> WELL, IT'S TO BE DETERMINED RIGHT NOW. I THINK IT'S 75%, BUT IT DEPENDS ON WHAT WE CROSS ANY THRESHOLDS I CAN GET TO 95% OR 90%. >> IS THAT THE 120-DAY RESERVE? >> IT WAS AT ONE POINT. IT'S NOT ANYMORE. >> THE GOAL WAS $120 DAYS? >> THE GOAL WAS 120 IN ALL OF OUR FUNDS. >> THAT'S THE GOAL, BUT THERE'S NO FORMAL FISCAL TARGET ON IT. >> I DON'T EVEN KNOW THAT THERE'S A CHARTER REQUIREMENT TO HAVE A RESERVE IN THOSE FUNDS AND I HOPE WE DO THAT AT A PRUDENT. >> BECAUSE OF THE THESE VERY REASONS WITH HURRICANES AND WOULD HAVE YOUR ACCEPTABILITY TO NATURAL DISASTERS AND HAVING THAT. THAT'S WHAT IT IS FOR I GUESS. >> ABSOLUTELY. >> THE STUDY ALSO SAYS THAT IT'S GOING TO USE 3% INFLATION GOING FORWARD IN ITS ANALYSIS, BUT OF COURSE, INFLATION HAS BEEN FAR HIGHER AND THAT'S ONE OF THE REASONS THAT RATE INCREASES ARE GOING UP. I'M JUST WONDERING, SHOULD WE MODEL A HIGHER INFLATION RATE JUST TO HAVE THAT INFORMATION? WILL THAT HELP? [LAUGHTER] >> WELL, WHAT THAT WOULD DO THOUGH, IF YOU MODELED A HIGHER INFLATION RATE, IT MAKE US GO UP ON RATES EVEN HIGHER. I WOULD RATHER ERROR ON THE ON THE BENEFIT OF OUR RESIDENTS AT THIS POINT AND LET'S SEE IF OUR AMI SYSTEM DOES WHAT IT'S BILLED TO DO, AND LET'S SEE IF WE CAN GET THERE OTHER WAYS AND LET'S ALSO SEE IF THINGS CHANGE. IF WE CAN GET INFLATION DOWN BELOW 3%, THEN WE'LL BE OKAY. >> THAT'S ALL I HAD. WAIT, I'M SORRY. I GOT ONE MORE. THERE'S A REALLY NICE GRAPH ON ONE OF THESE PAGES, 6.0 BENCHMARKING THAT SHOWS THE COMBINED RATE COMPARISON WITH OTHER CITIES MONTHLY BILL AND GALVESTON HAS SHOWN ON THE LOW END OF THIS AS COMPARED TO OTHER CITIES. IS THIS COMPARING THE SAME LEVEL OF SERVICE? >> PROBABLY NOT, BECAUSE WE OFFER A PRETTY HIGH LEVEL OF SERVICE, BUT WE ALSO HAVE ABOUT 60 LIFT STATIONS THAT WE HAVE TO DEAL WITH BECAUSE WE'RE SO FLAT WITH NO ELEVATION. I BELIEVE THERE'S ONLY ONE OTHER CITY IN THE REGION THAT HAS A COMPARABLE AMOUNT OF LIFT STATIONS THAT THEY OPERATE, AND THE REASON WHY IT'S SO LOW BECAUSE WE HAVEN'T GONE UP ON THIS RATE SINCE 2015. >> IT'S ALMOST 10 YEARS. >> THIS IS WHY WE'RE AT THE LOW END AND ALL THOSE OTHER CITIES THAT ARE ABOVE US, LEAGUE CITY AND [OVERLAPPING] ALL HAVE IMPACT FEES AS WELL ON THERE. THAT'S ANOTHER COST RIGHT THERE. >> BUT IN OUR DEFENSE ON THAT IMPACT FEES, WE'RE NOT PLOWING CORN FIELDS DOWN TO BUILD BASS SUBDIVISIONS WHERE YOU WOULD HAVE A REAL BENEFIT FROM THESE IMPACT FEES. IF YOU IMPLEMENTED IMPACT FEES, YOU'RE JUST GOING TO IMPACT THE GUY THAT'S DOING AN INFIELD DEVELOPMENT OR GETTING A NEW TAP AND BECAUSE HIS HOUSE HAS BEEN VACANT, THINGS LIKE THAT. WE NEVER SAW THE ENOUGH CRITICAL MASS FINANCIAL BENEFIT TO DO IMPACT FEES. THAT'S WHY WE ADOPTED THEM. WE SET THEM AT ZERO. I THINK THEY'VE EXPIRED NOW, BUT WE NEVER SAW THAT. I DON'T WANT ANYBODY TO COME AWAY THINKING THAT IMPACT FEES WOULD KEEP RATE INCREASES FROM HAPPENING BECAUSE WE MODELED IT AND IT DID NOT LOOK THAT WAY. >> I STILL HAVE SOME MORE. >> YOU HAVE A QUESTION SHARON ON THAT TOPIC? >> ON 10B? >> YES, MA'AM. >> HOW LONG DO YOU THINK IT WILL TAKE FOR THE AMI MODELING PROCESS TO HAPPEN WHERE YOU CAN SAY THIS HELPED? >> WELL, WE DID INCLUDE THAT IN THIS WHOLE ANALYSIS RIGHT NOW AND WE TOOK THE DATA THAT WE HAD PRETTY MUCH AND PROJECTED IT OUT. I THINK WHAT THAT PARAGRAPH THAT HE REFERENCED WAS ALLUDING TO WAS IT WILL KEEP THE RATES MORE STABLE OVER TIME AND YOU DON'T HAVE A DROP OFF IN REVENUE BECAUSE METERS STARTS SLOWING DOWN OR WHATEVER. >> WE'RE COMPLETING THE AMI INSTALLATIONS NOW, SO THIS NEXT YEAR WILL BE A REALLY GOOD YEAR FOR US TO USE. >> THIS WAS THE REASON WHY WE HELD AS LONG AS WE COULD ON INCREASING RATES, NUMBER 1, BECAUSE NOBODY WANTS TO INCREASE THE RATES ON OUR RESIDENTS, ESPECIALLY GIVEN ALL THE ECONOMIC CIRCUMSTANCES IS CLEAR IN THAT RIGHT NOW. NUMBER 2 IS WE WANTED TO SEE HOW MUCH REVENUE WE COULD GENERATE OUT OF THOSE NEW WATER METERS BEFORE COMING AND GIVEN A RECOMMENDATION ON THERE AND BRIAN WAS ADAMANT ABOUT THAT. [00:45:03] HE WAS LIKE NO, WE'VE GOT TO HAVE AT LEAST A SIGNIFICANT AMOUNT OF THIS AMI DATA TO COME OUT SO THAT WE CAN FACTOR THAT INTO OUR EQUATIONS. >> THE OLD METERS LOOK AT IT LIKE A PROPELLER IN A PIPE AND YOU HAD TO HAVE A CERTAIN AMOUNT OF VOLUME THAT TURNED THE PROPELLER AND THAT TURNED THE METER, BUT IF YOU GO INTO THESE LOWER FLOW AREAS OR PEOPLE WHO WERE LOWER USERS, THAT SOMETIMES IT WASN'T ENOUGH TO ACCURATELY SPIN THE PROPELLER. THAT'S WHY METER TECHNOLOGY ADVANCED TO WHAT IT IS NOW. I WANTED TO MAKE SURE THAT WE WERE CAPTURING ALL USAGE AND GETTING GOOD DATA ON THAT AND WE'RE AT 75, 80 PERCENT ON WHAT WE HAVE NOW, SO IT'S A GOOD INDICATIVE MODEL FOR US TO USE FOR THIS AND WE CAN FINE TUNE IT WITH THE LAST 20% OF METERS THAT ARE GOING IN THERE AS WE SPEAK AND I THINK WE'LL BE ABLE TO LOOK AT IT. MY GOAL WOULD HOPEFULLY BE THAT WE GET ENOUGH GOOD DATA WHERE WE DON'T HAVE TO COME BACK TO YOU AGAIN FOR THIS FOR A LITTLE LOW. THAT'S WISHFUL THINKING ON MY PART. I DON'T KNOW. >> BUT AS YOU GO ALONG, WILL YOU UPDATE US TO SAY HEY, THIS IS LOOKING BETTER, THIS IS LOOKING LIKE? >> ABSOLUTELY. YOU ACTUALLY GET THAT DATA IN YOUR QUARTERLY BUDGET REPORT. YOU CAN SEE YOU CAN ACTUALLY TRACK PERFORMANCE ON HOW WE DO. >> WHAT'S THE PERCENTAGE OF THE AMI INSTALLED ON THE ISLAND? >> AT 92%. >> 92% NOW. >> I LIKE THE IDEA OF THE QR CODE WHERE PEOPLE CAN GO IN AND REALLY MONITOR THEIR WATER TO USE. THAT'S GREAT FOR THOSE WHO HAVE THE TECHNOLOGY. >> WELL, SANTA GODLY, I HAVE MY METERS, I TRACK AND I ALSO TRACK MY MOTHER-IN-LAW'S AND MY PARENTS JUST IN CASE THEY LEAVE SOMETHING ON OR THERE'S A LEAK, WE CAN CATCH IT AND IT IS VERY ACCURATE. YOU CAN SET THE THRESHOLDS. YOU CAN SET IT PRETTY NARROW TO WHERE IT'LL TELL YOU HAVE A LEAK, WHEN MAYBE YOU'RE JUST RUNNING YOUR SPRINKLERS A LITTLE LONGER OR SOMETHING, BUT IT'S A VERY GOOD APP, AND I ENCOURAGE EVERYBODY TO GET IT BECAUSE IT WILL LET YOU KNOW QUICKLY IF YOU HAVE A LEAK. >> HOW DO YOU GET THE APP? >> IT'S DOWNLOADABLE AND I THINK THEY CAN HELP YOU WITH IT AT THE WATER DEPARTMENT, BUT WE HAVEN'T REALLY PUSHED OUT 100% ON THE APP ADOPTION BECAUSE WE'RE NOT 100% ON AND I DON'T WANT A BUNCH OF PEOPLE CALLING SAYING I DON'T WANT THE APP AND WELL, YOU DON'T HAVE THE METER YET. >> ONE OF THE INTERESTING THINGS, THEY'RE VERY ACCURATE BUT WE DO OUR PRIMARY LAUNDRY ON TUESDAY AND FRIDAY AND IT WAS SHOWING THAT WE HAD A LEAK ON TUESDAY AND FRIDAY BECAUSE THE USAGE WAS MORE. >> BECAUSE IF YOU SET THAT THRESHOLD, I HAD IT SET TOO NARROW AND THEN WHEN MY KIDS CAME HOME ON WEEKEND, IT WAS TELLING ME I HAD LEAKS. I SAID TO HER, I GUESS YOU COULD CALL THEM LEAKS, BUT THEY'RE ACTUALLY JUST CHILDREN. [LAUGHTER] >> BOB, ANY FURTHER QUESTIONS. >> NO, THAT'S ALL I HAVE FOR THAT, BUT I DO HAVE OTHER QUESTIONS. >> GO RIGHT AHEAD. YES. >> THIS FIRST ONE IS JUST A QUESTION GENERALLY SPEAKING ABOUT ALL THE CONSENT ITEMS THAT WE SAW WHO HAD PAGES AND PAGES OF CONSENT ITEMS ASKING US TO APPROVE PURCHASES AND SPENDING SOME MONEY AND MOST OF THEM WERE RELATED TO BERYL HURRICANE DAMAGE. A LOT OF THEM WERE DUE TO UNPREDICTABILITY OF ELECTRICAL SUPPLY, EITHER IT GOING OFF OR ON OR SURGING AND QUESTION IS TWOFOLD. WHAT IS OUR PLAN TO HARDEN THIS EQUIPMENT AGAINST THAT TYPE OF ELECTRIC SURGE, UNPREDICTABILITY AND NUMBER 2 IS COULD WE GET A SUMMARY OF ALL THE BERYL RELATED CITY LOSSES BECAUSE GETTING THESE PIECEMEAL DOESN'T GIVE ME PROPER PICTURE. GET A SUMMARY OF THE LOSSES, AND THE AMOUNT OF MONEY AND THE FUNDING SOURCES BECAUSE I ASSUME RIGHT NOW WE'RE PAYING FOR MOST OF THIS OUT OF RESEARCH, BUT HOPEFULLY, WE'LL GET FEMA FUNDING. ALSO SOME SUMMARY THAT PUTS THAT IN A PACKAGE AND GIVE US AN IDEA OF THE SCHEDULING OF FEMA REIMBURSEMENT. >> I WAS GOING TO GET TESSA TO COME GIVE YOU GUYS A COMPLETE UPDATE. I THINK LAST I LOOK, WE'RE ABOUT $8 MILLION JUST IN DAMAGES AND THAT'S NOT INCLUDING ALL OF OUR LABOR COSTS AND EVERYTHING. >> THAT ANSWERS THAT QUESTION UNLESS SOMEBODY ELSE HAS ANYTHING. >> TESSA I'D BE HAPPY IF YOU COME. BE CAREFULLY. [LAUGHTER]. >> SHE'S VERY HAPPY TO TODAY. [LAUGHTER] >> I GOT SOME OTHER [OVERLAPPING] >> GO RIGHT AHEAD. YES, SIR. >> 11C, REALLY QUICKLY. THIS IS ABOUT THE SOUTH SHORE AND 14TH STREET AND WE'RE ASKING FOR MORE MONEY, BUT COULD WE NOT AMEND THE 2021 CONTRACT WITH THE GLO. >> THAT WOULD BE YEARS IN THE MAKING AND [LAUGHTER] THEN YOUR INFLATION COSTS WOULD JUST GO UP AND UP AS WELL. >> IT WOULD BE WAITING ON THE AMENDMENT. >> THE STAFF AT LEAST HAVE TOLD US THAT THERE'S NO MORE MONEY AVAILABLE IN THAT IT WAS A COMPETITIVE GRANT PROCESS WHENEVER WE APPLIED FOR IT. THE ONLY WAY THAT THERE WOULD BE MONEY THAT POPPED UP AGAIN FOR THIS TYPE OF PROGRAM WOULD BE IF OTHER CITIES DID FULFILL THEIR OBLIGATIONS AND THEY HAD TO CLAW THE MONEY BACK. THERE'S JUST NOT ANY MORE MONEY OUT THERE. THIS WAS HURRICANE HARVEY MONEY IS WHERE IT CAME FROM. >> THIS IS THE 14TH STREET THAT WAS THE ONE FROM FEMA. [00:50:04] >> CORRECT. >> FEMA INCREASED IT, BUT IT WASN'T LAGGED BEHIND A COUPLE OF YEARS. >> WE ASKED FOR THAT FOR THE FEMA PUMP STATION AND THEN, BUT 21 I BELIEVE IS WHEN WE ASKED FOR IT. >> WE JUST GOT THE BOOST, BUT WE NEED TO SUPPLEMENT IT AND THEN THE CDBG GRANT WAS THE SOUTH SHORE. >> THERE'S BEEN NO INCREASE ON THAT WHATSOEVER. >> THERE'S NOT GOING TO BE ONE AVAILABLE FOR THAT, BUT THE FEMA 1 IT TOOK US YEARS TO GET A TERMINATION BACK ON THAT ONE AND THEN INFLATION ATE OUR LUNCH AND THEN WE'RE BACK IN THE HOLE AGAIN. >> JUST THE VICIOUS CYCLE. >> THAT'S EXACTLY RIGHT. IT'S NOT JUST US. YOU SEE WHAT HE DID TO THE SCHOOL DISTRICT AND OTHER PEOPLE TOO. IT'S KILLING AS WELL. I DON'T HAVE TO TELL BOVE HE DOES THIS EVERY DAY, SO HE KNOWS. >> YES, SIR. >> WE'RE EARMARKING A MILLION OUT OF THAT SLO AND IT'S 841? >> LET'S SEE. IT WAS 900,000, I BELIEVE OUT OF THE ECONOMIC DEVELOPMENT SLO AND THE 600 OUT OF INFRASTRUCTURE IS WHAT THE BOARD ENDED UP RECOMMENDING AND VOTING. >> YES, BEING THROUGH IDC. >> YES. FOR A TOTAL OF 1.5 MILLION PER YEAR FOR DEBT SERVICE PAYMENTS. >> BOB, ANY OTHER THINGS, SIR? >> YEAH, 11J. THIS IS ABOUT THE PRE-QUALIFIED ARCHITECTURE. >> THIS LOOKS LIKE A TYPICAL IDIQ, INDEFINITE DELIVERY INDEFINITE QUANTITY, WAY OF DOING THIS, WHICH IS REALLY GOOD. IT SAVES A LOT OF MONEY. IT SAVES A LOT OF TIME. BUT MY QUESTION WAS, IS THERE AN UPPER LIMIT TO THE FEES OR PROJECT COST OR SCOPE OF ANY KIND FOR THESE IDIQS? >> DUDLEY ANDERSON, CITY'S ARCHITECTURAL PROJECT MANAGER. NO, SIR. IT'S LEFT A LITTLE BIT FLEXIBLE SO THAT IF WE HAVE A SPECIAL PROJECT COMING IN, WE MAY NOT USE THE IDIQ SERIES, SO THAT WE CAN LOOK AT THOSE AS THEY COME OUT INDIVIDUALLY. >> FOR INSTANCE, IF WE HAD A REALLY BIG PROJECT SOMEHOW, I DON'T KNOW WHAT IT IS. WE WOULD STILL USE ONE OF THESE? >> WE MIGHT. IF ONE OF THEM PARTICULARLY FITS IT OR MORE THAN ONE OF THEM PARTICULARLY FITS IT, WE CAN TALK WITH THEM. >> BUT HISTORICALLY, IF WE'VE HAD LIKE A STANDALONE, LIKE IF WE WERE GOING TO GO OUT AND DO ANOTHER FIRE STATION OR SOMETHING, WE WOULD TYPICALLY TRY TO DO A SEPARATE? >> THAT'S WHAT I WAS GETTING TO. >> IF WE HAVE A SPECIAL PROJECT THAT'S LARGE, WE WOULD PROBABLY GO OUT FOR AN IDIQ. >> BUT THERE'S NO LEGAL REQUIREMENT TO HAVE A LIMIT ON THAT IDIQ? >> NO. >> BECAUSE THERE'S NO DOLLAR AMOUNT SET TO IT. WE'RE JUST LOOKING FOR QUALIFICATIONS. >> YEAH. I AGREE, THAT'S A REALLY GREAT WAY TO DO THAT. >> IT REDUCES OUR TIME AND PUTTING PROJECTS OUT CONSIDERABLY. >> MARIE? >> ON THAT ITEM, ARE THERE ANY LOCAL ARCHITECTS ON THAT, BECAUSE I DIDN'T RECOGNIZE THEM? >> THERE ARE A COUPLE. WE WENT OUT TO ALL OF THE LOCAL ARCHITECTS. WE DID GOOGLE SEARCHES, ANECDOTAL SEARCHES, THE WHOLE BIT, AND NOTIFIED ALL OF THE LOCAL ARCHITECTS THAT WE COULD FIND. WE GOT TWO THAT RESPONDED. IF YOU CONSIDER MARK LOCAL, BUT THERE WAS A GALVESTON ARCHITECT INVOLVED IN THAT GROUP. >> THERE'S ONE OTHER. >> YES, SIR. GO RIGHT AHEAD. >> IS THERE A POLICY IN PLACE RELATED TO THE THRESHOLD THAT WOULD REQUIRE GOING OUT FOR A COMPETITIVE BID? GIVEN THE FACT THAT YOU HAVE THESE FIRMS LISTED FOR IDIQS, YOU SAID SPECIAL PROJECT OR A ONE-OFF? IS THERE A LIMIT? >> WELL, THE LIMIT IS ALWAYS GOING TO BE $15,000, BECAUSE I CAN'T SPEND MORE THAN THAT WITHOUT YOU ALL APPROVING IT. >> IN TERMS OF AWARDING A PROJECT TO THESE PRE-QUALIFIED FIRMS. >> WE DON'T HAVE A LIMIT ON IT AT THE MOMENT. BUT WE'VE TALKED ABOUT SPECIAL PROJECTS, LARGER PROJECTS, THINGS LIKE THAT. IT MIGHT BE BENEFICIAL TO US TO GO OUT FOR AN INDIVIDUAL RFQ. >> THAT'S WHAT I'M TALKING TO YOU. IS THERE A CONSTRUCTION VALUE THAT YOU SAY, "HEY, IF IT'S IN EXCESS OF ONE MILLION DOLLARS, THEN YOU'RE GOING TO GO OUT." >> WE DID PUT A LIMIT ON IT. >> THE REASON YOU WOULD DO THAT IS TO TRY TO FIND SOMEBODY A LITTLE MORE APPROPRIATE OR SPECIALIZED FOR THAT PARTICULAR PROJECT. >> WE GOT QUITE A VARIETY IN WITH THIS ONE, BUT THERE MAY BE THINGS THAT NOBODY FITS WELL AND WE WOULD LOOK AT THAT BEFORE WE GO OUT. >> MARIE? >> TO WHAT DAVID JUST SAID, I WONDER IF WE WANT TO LOOK AT THAT AT A FUTURE MEETING TO LOOK AT. >> YEAH, I THINK IT WOULD DEPEND UPON THE DOLLAR VALUE AND THE SCOPE, LIKE WHAT DUDLEY SAID. >> BUT THERE IS NO DOLLAR VALUE SET. >> I UNDERSTAND. HOWEVER, IF YOU LOOK AT SOME OF THE FIRMS THAT ARE ON HERE, SOME OF THEM ARE LARGE FIRMS THAT ARE EXTREMELY DIVERSE, [00:55:04] THAT COULD HANDLE PROBABLY ANY SCOPE, BUT I DO AGREE THAT MAYBE IN THE CASE OF A NEW FIRM. >> HERE'S THE THING, COUNCIL IS GOING TO GET TO LOOK AT IT REGARDLESS. IF WE BRING IT TO YOU AND YOU GUYS WANT US TO DO THAT, THEN YOU TELL US AND WE DO THAT. >> THERE'S ALREADY THAT CONTROL. >> WE'RE DONE WITH THAT ONE, I GUESS. >> WHAT IS THAT? >> ARE WE DONE WITH THIS ONE? >> YEAH, I THINK SO. >> THE VERY LAST ONE, AND I PROMISE THERE WILL BE NO MORE FROM ME. 11S ON THE BALLARD PROJECT, IT DIDN'T SPECIFY IN THE STAFF REPORT THAT I SAW A FUNDING SOURCE. >> 11F IS THE? >> 11S. >> S, I'M SORRY. >> GOOD MORNING, COUNSEL. GOOD MORNING, MAYOR. >> GOOD MORNING, TIM >> COUNCIL MEMBER, THAT PROJECT IS FUNDED THROUGH SEAWALL PARKING REVENUE. >> GOOD. I JUST WANTED TO MAKE THAT MAKE SURE THAT WAS CLEAR. THEN THE OTHER QUESTION PART OF THAT WAS, ARE THERE SUBSEQUENT PHASES TO COME GOING FURTHER WEST? >> AFTER THIS PHASE, THE LAST ONE WE HAVE LEFT TO DO FROM 61ST STREET EAST WILL BE FROM 19TH TO 29TH. THOSE ARE THE ORIGINAL BOLLARDS THAT WERE PUT BACK PUT IN IN 2000. >> YEAH, AND THEY ARE NOT HOLDING UP WELL. >> WE WANTED TO GET THE LIFE CYCLE OUT OF THOSE BEFORE WE CAME BACK AROUND AND FINISHED THAT LAST. >> BUT ULTIMATELY, WE PLAN ON GOING? >> THE PERMIT IS TO 103RD STREET. >> THE PERMIT IS TO 103RD, SO WE EVENTUALLY PLANNED ON GOING TO 103RD. >> WHAT'S THE COST DIFFERENCE BETWEEN THE BOLLARDS? >> IF WE PURCHASED THEM THROUGH GALVESTON ELECTRIC PROVIDES THEM. I'VE GOT IT AROUND DOWN HERE. FOR THE OLD ONES VERSUS THE NEW ONES? >> THE OLD ONES ARE NOT EVEN PRODUCED ANYMORE. THOSE HAVE ALREADY FAILED? >> WELL, THEY'RE THEY'RE PLASTIC, AND THEY'RE DEGRADING. THE DEGRADATION ON THEM HAS BEEN HIGHER THAN WHAT WE ANTICIPATED. [OVERLAPPING] THEY'RE ALSO FRAGILE. WE PLACE OURS ON THE ENDS OF THE PARKING SPOTS. THESE WERE NOT PLACED IN THOSE WAYS. SO THEY'RE VERY SUSCEPTIBLE TO CAR DOORS. IF YOU HIT ONE OF THESE OTHER ONES, THEY'RE PRETTY STABLE UNLESS YOU'RE IN FRONT OF PROTO BEACH. BUT IF YOU HIT ONE OF THESE PLASTIC ONES, ESPECIALLY ON A BIKE OR SCOOTER, THEY COME OFF. >> THEY'RE VERY STOP FIXTURE. >> WHEN YOU GO BACK TO REPLACE THOSE, YOU'LL PUT THEM BETWEEN THE PARKING SPOTS. >> WE'RE GOING TO PUT THEM AT THE PARKING STRIPES, JUST LIKE WE'RE DOING NOW. >> YEAH. THERE'S GOING TO BE A LITTLE BIT MORE INVOLVED IN THAT SECTION BECAUSE WE'RE GOING TO HAVE TO ACTUALLY MOVE SOME OF THEM. THAT'S FROM 29TH TO? >> 19TH. YES, SIR. >> THAT'S ALL I HAD. THANKS. >> THANK YOU, BOB. MARIE? >> ON WHAT? >> YOU HAD QUESTIONS, SO ANYTHING ON THE AGENDA? >> YEAH. THEY COVERED MINE. ON 11 F. THAT'S ON THE ANNUAL GRANT WHEN, I SUPPOSE. >> 11S. GOOD MORNING, CHIEF. >> 11F. WILL WE BE ABLE TO USE ANY OF THAT TO PUT BREATHALYZERS IN ALL THE VEHICLES? >> NO, MA'AM. THIS FOR ENFORCEMENT AND TRAINING PURPOSES ONLY. WE HAVE CERTAIN ZONES THAT WE WORK, AND SEAWALL, 35, BROADWAY, ETC. THAT WE CAN PUT OFFICERS OUT THERE TO ENGAGE SPEEDERS AND THEN ALSO LOOK FOR IMPAIRED DRIVERS. >> DO YOU THINK WE'D BE ABLE TO FIND NEW GRANT TO GET BREATHALYZERS IN ALL THE CARS SINCE THAT SEEMS TO BE AN ISSUE I'M HEARING A LOT OF HELP? >> THE PORTABLE BREATHALYZER UNITS THAT ARE USED, YOU SEE THEM USED ON TV AND EVERYTHING, THE RESULTS ARE NOT ADMISSIBLE IN COURT. IT'S BASICALLY JUST A TOOL. THERE'S OTHER TOOLS AS WELL. WE DO UTILIZE SOME OF THE TECHNOLOGY. BUT SOME OFFICERS LIKE THEM. SOME OFFICERS DON'T. SOME OFFICERS WILL PREFER TO GO THROUGH THE STANDARD FIELD SOBRIETY TESTING, AND THIS IS JUST ONE TOOL THAT'S A PART OF IT, AND YOU STILL HAVE TO GO THROUGH THE ENTIRE PROCESS ANYWAY. BUT THEY'RE RELATIVELY INEXPENSIVE AND WE'RE ABLE TO GET THOSE, IF NEEDED. >> THANK YOU. >> YES, MA'AM. >> THANK YOU, CHIEF. ANYTHING ELSE, MARIE? >> NO. EVERYBODY COVERED MINE. THANK YOU. UNLESS THEY COVERED JOHN BACK. [LAUGHTER] >> YEAH, IT IS. ALEX? >> MY ONLY QUESTION WAS ON 10B, AND I DIDN'T WANT TO INTERRUPT BOB MORE THAN I DID. HOW MUCH DOES THE DEBT SERVICE PLAY INTO THE PICTURE FOR THE WATER AND WASTE SEWER FUND? ON 10B, I THINK IT A LITTLE EASIER TO SEE THE DEBT SERVICE AND WHEN THAT GOES DOWN, [01:00:03] BUT ON B, THAT WAS KIND OF UNCLEAR. >> IN THE UTILITY FUNDS, THAT'S YOUR PRIMARY COST DRIVER ON EVERYTHING REALLY, IS YOUR CAPITAL PROGRAM, ESPECIALLY WHEN YOU HAVE A VERY AGED SYSTEM LIKE WE DO HERE IN GALVESTON. IT WASN'T WELL-MAINTAINED THROUGHOUT THE DECADES OR WHAT HAVE YOU, AND SO WE'VE GOT A LOT OF REPLACEMENT FOR A LOT OF DIFFERENT FACILITIES, AND PIPE, AND EVERYTHING ELSE. IT'S DEFINITELY THE PRIMARY DRIVER RIGHT BEHIND YOUR LABOR COSTS PROBABLY FOLLOW AFTER THAT. >> THE AMI WAS MOSTLY A GRANT OR? >> ALL OF IT WAS A GRANT. >> YEAH. >> WAS THERE ANY NO MATCH FUNDING REQUIRED? >> NO. ON THAT ONE, THERE WAS NO MATCH. THAT WAS PART OF WHAT WAS AT THE BILL. IT WAS ONE OF THOSE AMERICAN RECOVERY ACT. EXACTLY, RIGHT. IT CAME OUT AFTER THE PANDEMIC. >> WHAT'S THE OLDEST PART OF THE SYSTEM THAT WE'RE PRETTY MUCH, YEAR WISE, THAT WE'RE GOING TO BE LOOKING AT FOR REPLACEMENT THAT SOME OF THIS DEBT SERVICE IS GOING TO BE, I GUESS IT'S ALREADY BEEN ISSUED? >> RIGHT NOW, WE'RE REBUILDING PIRATES BEACH WASTEWATER TREATMENT PLANT WITH A SIGNIFICANT PORTION OF THAT DEBT SERVICE THAT WAS ISSUED. LAST TIME, AND WE'VE GOT SEVERAL LIFT STATIONS THAT ARE CURRENTLY GETTING READY TO BRING TO COUNCIL FOR APPROVAL RIGHT NOW THAT NEED TO BE REHABBED, COMPLETELY REBUILD ALMOST AT THIS POINT. THEN WE'LL HAVE A LOT MORE RECOMMENDATIONS FOR YOU NEXT YEAR WHENEVER WE COMPLETE THE WATER AND THE WASTEWATER MASTER PLAN. >> IN TERMS OF LEAKS, WE DON'T HAVE ANY OF THOSE LARGE LEAKS THAT AREN'T REALLY FOUND IN THE SYSTEM OR? >> THIS IS REGARDING SEWER. SO IF WE HAVE LEAKS, WE'RE ADDRESSING THOSE ASAP. >> ANY LARGE UNFOUNDED? >> I LOOKED AT LEAKS YESTERDAY IN RESPONSE TO A CUSTOMER, AND WE HAD ABOUT 82 ACTIVE LEAKS AS OF YESTERDAY. WE'VE PRIORITIZE THOSE BASED ON AGE AND SEVERITY. IF IT'S IF IT'S A GUSHER, WE'RE ON IT. >> BUT OUR LEAK LOSS IS ONE OF THE BEST NOW, AND OUR AMI SYSTEM WILL ONLY MAKE THAT BETTER. >> WE WERE AT SO AND SO PERCENTAGE. >> WE WERE DOWN IN THE 60S. WE'RE UP HIGH. >> WHAT'S THE PERCENTAGE DOWN? >> WHAT'S OUR LEAK LAST NOW, BRANDON? IT'S IN THE 80S. >> WELL, THAT'S 14.5%. >> YEAH. THE WHOLE INDUSTRY IS GETTING AWAY FROM DESCRIBING WATER LOSS IN A PERCENTAGE TERMS, AND THEY'RE LOOKING AT IT MORE ON A NON REVENUE TERMS. BUT YEAH, FROM AN ACTUAL [OVERLAPPING]. >> WHAT WE CHARGE BASED ON THE USAGE BY CUSTOMERS AND THEN WHAT WE SEE USAGE ON. >> BUT USING THE OLD SCHOOL, WE HAVE ABOUT A 14%. >> THAT'S RIGHT. >> WHICH IS REALLY GOOD FOR THE SYSTEM, ESPECIALLY ONE OUR AGE. >> RIGHT. MARIE? >> TO JUST COMMENT ON THAT ONE. I WAS ON COUNCIL FROM 12-14, I THINK IT WAS, OVER 70%. >> IT WAS CRAZY. >> ASTRONOMICAL. >> BUT HELL, ONE LEAK WAS PROBABLY MILLIONS A GALLONS. [OVERLAPPING]. >> WHEN WE ADDRESSED THAT ONE, IT CUT ABOUT A BILLION GALLONS A YEAR. >> THEN HE HAD TO PAY THAT FELLA'S SWIMMING POOL. >> THAT'S RIGHT. THAT HOSE THAT HE HAD RAN INTO HIS HOUSE. >> YEAH. THEN WE'VE MADE PROGRESS EVERY YEAR SINCE THEN WITH A MINOR FLIP HERE OR THERE. >> IT'S A BALANCING ACT ON THE LEAKS BECAUSE YOU COULD TAKE THAT DOWN A LOT LOWER, BUT THERE'S A CAPITATION PERIOD WHERE YOU'RE SPENDING MORE DOING THAT THAN YOU'RE SAVING. >> THAT'S WHY THEY'RE LOOKING AT IN TERMS OF DOLLARS INSTEAD OF PERCENTAGES AS WELL, AND THAT'S WHY THE INDUSTRY IS GOING THAT ROUTE. BECAUSE THEN YOU START THROWING DOLLARS CHASING DIMES AT SOME POINT, ESPECIALLY IN A REGION LIKE US WHERE REALLY THE COST OF WATER ISN'T AS EXPENSIVE AS IT IS IN OTHER PARTS OF THE NATION. >> WE'RE $1 PER THOUSAND AT THE FENCE. WE'RE ONE OF THE CHEAPEST. WE'RE GOING TO BE BRINGING GULF COAST WATER AUTHORITY TO YOU AT YOUR BIG MEETING IN SEPTEMBER BECAUSE WE'RE GOING TO BE BRINGING FORTH WATER CONTRACTS, WELL CONTRACTS, ALL THOSE THINGS TO YOU. WE'RE GOING TO WORKSHOP THEM EARLY IN SEPTEMBER AND BRING TO AT THE END OF SEPTEMBER, IF WE CAN GET IT ALL FINISHED SOON. >> THIS CLASSIFICATION OF RESIDENTIAL, NON RESIDENTIAL, IS THAT BASED ON THE SERVICE THAT THEY SIGN UP FOR, OR IS IT BASED ON ZONING, OR? >> I THINK IT'S PART OF THE APPLICATION. THEY CHECK WHETHER THEY'RE RESIDENTIAL OR COMMERCIAL, BUT THEN AS PEOPLE ENTER IN THE BILLING SYSTEM, THEY GIVE IT A. >> DOUBLE CHECK. >> YEAH. WE'LL CHECK IT. BECAUSE WE DO HAVE PEOPLE LIVING RESIDENTIALLY IN COMMERCIALLY ZONED PROPERTY. THAT'S NOT A PERFECT SCIENCE, BUT WE TRY TO SELL THEM ON THAT AS BEST WE CAN. VICE VERSA, UNFORTUNATELY, [01:05:01] PEOPLE LIVING IN RESIDENTIAL PROPERTIES THAT ARE COMMERCIAL. >> ALEX, ANYTHING ELSE, SIR? SHARON? >> CHIEF, 11G. JUST SOME BULLET POINTS FROM OUR RESIDENTS ON THIS. I SEE IT'S A PARTNERSHIP WITH THE COUNTY? >> YES, MA'AM. >> IT SEEMS LIKE IT'S GOING TO BE VERY POSITIVE. IT'S AN UPGRADED TECHNOLOGY WHERE YOU CAN DO A LOT MORE THINGS. CAN YOU JUST GIVE US A FEW BULLET POINTS ON IT? >> YES, MA'AM. OUR CURRENT RMS SYSTEM IS ANTIQUATED AND IT'S NEAR END OF ITS LIFE, AND WE ARE TRANSITIONING TO A NEW ONE. PRIOR TO THIS AND CURRENTLY, WE'RE IN A CONSORTIUM WITH LEAGUE CITY AND MULTIPLE OTHER AGENCIES. WE ARE NOW GOING TO TRANSITION INTO A PARTNERSHIP WITH THE COUNTY. WE'RE IN THE SAME BUILDING, IT ONLY MAKES SENSE THAT WE'RE UTILIZING THE SAME TECHNOLOGY TOGETHER. OUR DISPATCH CENTERS WILL BE USING ALL OF THE SAME TECHNOLOGY. OVERALL, I BELIEVE, FOR OUR PURPOSE, IT JUST MAKES MORE SENSE TO PARTNER WITH THE COUNTY AS WE'RE [OVERLAPPING] >> THE MOTOROLA SOLUTION IS AN INTEGRATED SOLUTION THAT WORKS WITH OUR RADIO SYSTEMS AND DISPATCH SYSTEMS AND EVERYTHING ELSE. MOTOROLA, THEY'RE THE ELEPHANT IN THE ROOM. THEY'RE THE BIG BOY. >> ARE YOU ABLE TO INCREASE THIS IF YOU NEEDED TO, FROM 100K OR IS THAT A MINIMUM OR? >> AN INCREASE OF THE DATA THAT'S BEING CONVERTED? >> UH-HUH. >> WE WERE LOOKING AT ALL TYPES OF HOW MUCH WE WANTED TO BRING OVER. WE CAN INCREASE IT, BUT THERE'S ALSO, AND HOPE IS MORE VERSED ON IT THAN I AM, BUT WE ALSO HAVE THE ABILITY TO BRING OVER ANY CASE THAT WE WANT AFTER THE FACT. AFTER THE CONVERSION IS ALREADY DONE, THERE'S A MODULE THAT ALLOWS US TO BRING ANY CASE THAT WE'VE DECIDED THAT, THAT WASN'T PART OF THE CONVERSION, BUT WE NEED IT BECAUSE OF X, Y, OR Z. THAT AFTER THE FACT, WE CAN BRING IT OVER. WE WERE TRYING TO BE AS AS FRUGAL AS POSSIBLE WITH HOW MUCH WE BROUGHT INITIALLY, AND WE KNEW WE HAD TO BRING ALL OF OUR HOMICIDES, AND COLD CASES, AND CURRENT CASES THAT WE'RE ACTIVELY WORKING. >> LET ME TAKE A MOMENT TO BRAG ON CHIEF BALLI AND HOPE ON THIS FOR A MINUTE. WE WERE HEADING DOWN A MULTI MILLION DOLLAR PATH, AND BY THEM GOING TO THE COUNTY AND WORKING WITH THE COUNTY, OUR SAVINGS IS DRAMATIC PROBABLY UNDERSELLS IT. WE OWE THESE GUYS A LOT OF THANKS BECAUSE THEY CUT A HELL OF A DEAL. >> I LOVE PARTNERSHIP AND COLLABORATION. >> I WAS WONDERING, HOW OLD IS THE CURRENT SYSTEM THAT WE'RE GOING TO REPLACE? >> I CAN TELL YOU, BECAUSE THEY ADOPTED IT WHEN I GOT HERE. IT'S PROBABLY 13 YEARS AGO, 14 YEARS AGO. CHIEF WILEY WAS HERE. >> WAS IT 2011 OR 2013? >> 2011, I THINK. >> YEAH. >> WHAT'S THE LIFE EXPECTANCY OF THIS ONE? >> [OVERLAPPING] HOPE, COULD YOU COME FORWARD, PLEASE. >> HOPEFULLY, THEY UPDATE IT. >> WELL, JUST REMEMBER THOUGH, WHEN YOU'RE DEALING WITH THESE BIG COMPANIES, THERE'S PLANNED OBSOLESCENCE IN EVERYTHING THAT THEY DO, ESPECIALLY MOTOROLA, AND YOU'RE GOING TO BE HEARING FROM US IN THE COMING YEAR PLANED OBSOLESCENCE OF OUR RADIOS, AND THAT IS NO SMALL TICKET ITEM. >> MOST SOFTWARE SYSTEMS TYPICALLY HAVE A SHELF LIFE OF ABOUT 20 YEARS. >> BEFORE SOMETHING ELSE IS BIGGER AND BETTER SO TO SPEAK. THEY'RE INVESTING ALL OF THEIR RESOURCES INTO A CURRENT PRODUCT, KEEPING IT MATURE, WHILE SOMEBODY ELSE IS INVESTING THEIR PRODUCT IN THE FUTURE. WHAT HAPPENS IS EVENTUALLY, WHILE THEY MIGHT BE TOP OF THE LINE TODAY IN THEIR INDUSTRY, AT SOME POINT, SOMEBODY ELSE IS GOING TO PASS BY. >> THERE'S GOOD AND BAD WHEN YOU JOIN THESE PARTNERSHIPS IN CONSORTIUMS TOO BECAUSE IT'S LIKE OWNING A CONDOMINIUM. EVERYBODY'S GOT DIFFERENT LEVELS. I CAN TELL YOU MY NEIGHBORS THINK I'M CRAZY BECAUSE I'M VERY EXACTING WITH MY HOUSE AND EVERYTHING, I PROBABLY HAVE A HIGHER STANDARD THAN SOME OF THEM DO. BUT WHEN YOU LIVE IN A CONDO, YOU GO WITH WHAT THE ASSOCIATION VOTES ON, SO IT MAY BE TOO SOON FOR YOU AND NOT SOON ENOUGH FOR YOU. WHEN YOU'RE IN THESE CONSORTIUMS AND LEAGUE CITY DECIDED THAT THEY WERE GOING TO GO THROUGH THIS CHANGE, WE WERE FORCED TO MAKE A CHANGE ONE WAY OR THE OTHER. WE JUST WENT A DIFFERENT DIRECTION THANKS TO THESE GUYS, AND I THINK IT'S GOING TO BE A VERY GOOD PARTNERSHIP. >> I THINK SO TOO. >> GREAT. THANK YOU FOR THAT. >> VERY GOOD. THANK YOU VERY MUCH. SHARON, ANYTHING ELSE? >> I GOT ONE QUESTION FOR YOU. COUNCIL HAS BEEN LOOKING AT WHAT WE CAN SPEND HOT TEXT FOR, [01:10:02] BASED ON CASE LOAD BASED ON WHO, IF IT'S TOURIST ON TOURIST OR TOURIST ON RESIDENT. >> TOURIST NOT TERRORISTS.[OVERLAPPING][LAUGHTER] >> WOULD THIS BE GOOD FOR PUTTING DATA TOGETHER BETTER THAN THE CURRENT SYSTEM? >> I BELIEVE IT WILL BE EXPONENTIALLY BETTER AT COLLECTING DATA AND THE THINGS THAT WE NEED, AND WE'VE TALKED ABOUT THOSE THINGS. >> CUSTOM REPORTS. >> YES. WHERE WE CAN EASILY GO IN AND RUN STATISTICS ON WHO THE COMPLAINANT IS IN A CRIME. IS IT A IS SOMEONE WHO LIVES OFF THE ISLAND VERSUS SOMEONE THAT LIVES HERE, AND AS WELL AS WHO'S COMMITTING THE CRIMES? ARE WE MAKING MORE ARRESTS FROM PEOPLE THAT ARE OFF THE ISLAND AND NOT RESIDENTS, ETC AND SO I THINK WE'RE GOING TO BE ABLE TO PULL THAT DATA. I'VE ASKED FOR ALSO TO BE ABLE TO DO THINGS LIKE SEPARATE OUT OR HAVE SEARCH ENGINES FOR GOLF CART RELATED INCIDENTS VERSUS VEHICLES. BECAUSE NOW IT'S A MATTER OF MANUALLY GOING THROUGH THOSE REPORTS TO FIND THEM, SO WE BELIEVE IT'S GOING TO GIVE US MUCH BETTER DATA. >> TO DO ANY SYSTEM CUSTOMIZATION NOW, WE HAVE TO GO TO THE CONSORTIUM TO DO THAT AND THIS IS GOING TO ALLOW US A LOT MORE FLEXIBILITY TO DO SOME FREE WHEELING ON OUR OWN. >> IF WE APPROVE THIS TODAY, WHAT'S THE TIMELINE THAT WE CAN START SEEING THE STUFF GETTING ENTERED? >> THE PROJECT IS ALREADY IN PROGRESS. >> OKAY. GOOD. IT'S IMPERATIVE YOU IMPROVE IT TODAY[LAUGHTER] BECAUSE THE FIRST DATE OF CONVERSION MEETING IS ACTUALLY IN THREE WEEKS. CURRENTLY THIS PROJECT, THE SOFTWARE IS SCHEDULED TO GO ONLINE, OCTOBER OF 2025. AT THE CURRENT TIMELINE, SO FOR SOME REASON THAT THERE A LOT OF DIFFERENT THINGS THAT CAN FALL THAT TO CHAIN [OVERLAPPING]. >> SWIMMINGLY, ALL THIS DATA SHOULD BE IN THERE BY THE SAME TIME NEXT YEAR. >> HOW IT RECEIVES THE OLD DATA IS ONE OF THE THINGS THAT YOU'RE GOING TO HAVE TO WORK WITH. IT'S NOT GOING TO BE ABLE TO TELL US OUR OLD STUFF IS NOW GOLF CART ISSUE IN THIS[BACKGROUND] IT'S NOT GOING TO BE APPLES TO APPLES, BUT WE'LL ACTUALLY BE ABLE TO START COLLECTING GOOD DATA IN 2025. >> WE EXPECT THE SYSTEM TO GO ONLINE IN OCTOBER OF 2025. THE DATA CONVERSION TASK ALONE IS MAJOR, THERE'S A LOT OF EFFORT THAT GOES INTO CONVERTING DATA. IT'S NOT EASY, IT'S NOT AN APPLE TO AN APPLE. >> THERE'S A LOT OF TRAINING TO BECAUSE AS YOU KNOW, TRASH IN TRASH OUT, SO WE NEED TO MAKE SURE THAT OUR DATA ENTRIES ARE WHAT WE WANT SO WE CAN GATHER THAT DATA. >> HOW MUCH IS THAT MOTOROLA? HOW MUCH IS THAT GPD OR YOUR NEIGHBORHOOD. DATA ENTRY HOW MUCH IS? >> ONE THEY CURRENTLY USE. >> 68. IT'S ALMOST ALL OF THAT SYSTEM USER. >> YOU GUYS HAVE TO BE PAPER PUSHING ON? >> CORRECT. >> FOR THOSE OF YOU THAT ALWAYS CALL AND SAY THAT COP'S BEEN SITTING IN THAT PARKING LOT AND HE'S NOT DOING ANYTHING. THAT'S WHAT THEY'RE DOING. WHEN THEY DON'T HAVE CALLS, THEY'RE SITTING IN THEIR CARS, THEY'RE WORKING, THEY'RE DOING REPORTS, THEY'RE ENTERING THE DATA. >> INTO THE NEW SYSTEM. >> WELL, INTO THE SYSTEM PERIOD. >> A SYSTEM. LIKE RIGHT NOW, THE NAME OF THE SOLUTION THAT THEY USE IS CALLED ONE SOLUTION, AND IT'S OWNED BY A DIFFERENT COMPANY THAN MOTOROLA AND SO YOU HAVE A CAD SYSTEM, YOU HAVE A REPORTING SOLUTION, AND THEN YOU HAVE A RECORDS MANAGEMENT SOLUTION THAT'S HOLISTICALLY EVERYTHING. FREQUENTLY, WHEN YOU SEE SOMEBODY SITTING OUT BUGGING AROUND, THEY'RE WRITING REPORT. THEY'RE TYPICALLY WRITING AN INCIDENT REPORT. >> WOULD THIS MAKE THE INCIDENT REPORTS QUICKER, MORE EFFICIENT OR I KNOW IT'S AS DETAILED AS THE OFFICERS NEED TO BE, BUT. >> I'D LIKE TO THINK THERE ARE SOME ENHANCEMENTS IN THE MOTOROLA PRODUCT THAT WILL ALLOW FOR A REDUCTION IN THE TIME AND TAKING DATA FROM ONE PART OF THE SYSTEM AND BRINGING IT IN AND NOT HAVING TO RECREATE IT AND SO FORTH, AND SO ON. >> THE REAL EFFICIENCIES ARE GOING TO OCCUR IN THE INVESTIGATIVE SIDE OF THINGS BECAUSE THE DATA IS GOING TO BE MUCH MORE ROBUST, MUCH MORE ACCESSIBLE, AND MUCH EASIER TO ACCESS. >> OFFICERS SPENT A LOT OF TIME WRITING THEIR NARRATIVE AND THEIR SYNOPSIS OF THEIR REPORTS. THE OTHER PART OF IT JUST COMES IN FROM CAD AND SO FORTH. WHERE THEY SPEND THE CORE OF THEIRS IS THE TEXT. >> WHO, WHEN, WHERE, WHY? >> YES. >> OF THE REPORT. >> WELL, BACK WHEN CAPTAIN HANCOCK, WHEN HE WAS IN THE CAPTAIN, [INAUDIBLE] WROTE OF HIS WERE EPIC.[LAUGHTER] >> THAT'S GOOD. IT INCREASES YOUR INTELLIGENCE. >> IT DOES. >> I LOVE ONE, I HAVE TO LOOK AT THE WORK. [01:15:01] BUT THAT ONE TRINA TAUGHT ME ABOUT THE WATER WHERE THE LADY THOUGHT SHE HAD BUGS AND I STILL CAN'T REMEMBER BUT THAT WAS. >> TUBERCULATION. >> WHO WOULD HAVE THOUGHT.[LAUGHTER] BUT SINCE WE ARE GOING TO HAVE MORE ACCURATE, AND EFFICIENT DATA, LIKE YOU SAID GOLF CARD BECAUSE THAT'S ONE THAT'S HARD OR RENTALS THAT'S ONE THAT'S HARD. LIKE GOLF CARD, CAN YOU ADD LIKE UNDERAGE DRIVING? >> HOPEFULLY, AND I'VE SEEN ALL THESE SYSTEMS ARE CUSTOMIZABLE AND SO WHAT I'VE SEEN MODELS OF THE SYSTEM, I'VE SEEN HOW IT RUNS, BUT ACTUALLY WE DON'T HAVE IT YET, SO I HAVEN'T BEEN ABLE TO GET IN AND UTILIZE IT. I BELIEVE SO, I THINK THAT WE'RE GOING TO BE ABLE TO HAVE A MANY DIFFERENT SEARCH ENGINES IN MANY WAYS TO EXTRACT DATA THAT ARE WAY MORE EFFICIENT THAN OUR CURRENT SOLUTION. OUR CURRENT SOLUTION HAS BEEN PURCHASED OVER AND OVER AND OVER MULTIPLE TIMES BY DIFFERENT COMPANIES. GOING WITH MOTOROLA, I DON'T BELIEVE ANYONE'S COMING IN AND PURCHASING THEM AND BUYING AND CHANGING THINGS[BACKGROUND] BUT YOU NEVER KNOW. I THINK THAT WE'RE GOING TO HAVE A SOLUTION. >> THEY'D BASICALLY BE PURCHASING SHOMBERG, ILLINOIS, BECAUSE I THINK THEY OWN THAT.[LAUGHTER] >> ONE OF THE THINGS THAT WOULD BE CRITICAL SINCE WE WILL BE ABLE TO GET MORE DATA WOULD BE THE INFORMATION ON THE SHORT TERM RENTALS. IF THE COUNCIL DOES DECIDE TO GO TO LICENSE AS HAVE BEEN DISCUSSED AND IT'S SO MANY OFFENSES THAT WILL BE CRITICAL TO HAVE THAT DATA. >> YOU TYPICALLY RUN ALL THE DATA ON A CERTAIN ADDRESS, AND BE ABLE TO PULL IT AND IF THAT ADDRESS IS FLAGGED AS A SHORT TERM RUN SHOULD BE RELATIVELY EASY TO PULL THAT WOULD GO HAND IN HAND WITH HOW WE'RE THE REGISTRATIONS. >> BECAUSE I HAVE TO SAY IF I'M SURE OTHER PEOPLE HAVE DONE IT AND I HAVE PULLED REPORTS ON DIFFERENT TYPE OF INCIDENTS AND IT IS THE FACT NOW THAT THEY HAVE TO DO IT MANUALLY IS. >> LET ME JUST SAY THE BIGGEST PROBLEM YOU HAVE WITH SHORT TERM RENTALS IS REGISTRATIONS ARE CONTAINED IN A TOTALLY DIFFERENT SOFTWARE SYSTEM. >> I KNOW THAT ONE. >> SAY THAT AGAIN. >> THE REGISTRATION DATA IS IN A COMPLETELY DISPARATE INDEPENDENT SOFTWARE SYSTEM. >> CORRECT. >> YOU HAVE TO FIND A COMMON DENOMINATOR TO BRING THAT REGISTRANT INFORMATION IN A TAP TO ANOTHER SYSTEM. THERE HAS TO BE A COMMON WAY TO TIE THE RECORDS TOGETHER. TO BE HONEST WITH YOU, SO WE'RE LOOKING YOU'VE GOT OUR UTILITY BILLING SYSTEM THAT'S GOT TO ATTAIN IT. THEIR SYSTEMS GOT TO ATTAIN IT, OUR PERMITTING SYSTEM HAS TO TRY AND USE IT. YOU HAVE TO FIND SOMETHING THAT'S COMMON BETWEEN ALL OF THEM AND THAT'S THE BIGGEST PROBLEM WE HAVE RIGHT NOW. >> BUT WHAT WE'RE LOOKING AT IS THE CALL CENTER. THIS WOULD PICK UP INFORMATION IF OUR CALL CENTER IS DISPATCH OR WHATEVER, THAT WOULD PICK THOSE REQUESTS UP THE SOFTWARE. >> I WOULD THINK SO, JUST THE ADD TO WHAT THE MAYOR IS SAYING, WE ALREADY HAVE NOW THAT WE KNOW THAT WE HAVE 4,700 RENTALS. >> CORRECT. >> THERE WOULD BE SOMETHING THAT I WOULD ASSUME THAT WE COULD MARK IN THE SOFTWARE, WHETHER IT'S. >> WE DID SOMETHING SIMILAR TO COVID, WHEN COVID FIRST CAME OUT, WE DID COVID ALERTS. OF COURSE, NOW EVERY CALL HAS A COVID ALERT, BUT IT'S JUST. >> HAZARDS AND STUFF LIKE THAT. THE PROBLEM YOU HAVE IS THERE'S NO CONSISTENCY IN THE ADDRESSING, EVERY STREET HAS A DIFFERENT NAME. >> [OVERLAPPING] ONE BLOCK OF A STREET HAS A DIFFERENT NAME. >> THERE'S A LOT OF CHALLENGES TO GET ALL THESE SYSTEMS[BACKGROUND] PUT ON THAT REGISTRANT INFORMATION. I DON'T HAVE A GOLDEN ANSWER FOR YOU RIGHT NOW, BUT WE DO RECOGNIZE HOW IMPORTANT IT IS TO LOOK INTO IT AND TRY AND FIGURE OUT HOW WE'RE GOING TO TIE IT ALL TOGETHER. >> WHAT WE KNOW IS THAT THE CURRENT SYSTEM HAS NO WAY OF DOING IT.[LAUGHTER] >> LET'S WRAP THIS UP BOB, YOU HAD A QUESTION. >> I KNOW THIS IS A SMALL PART OF IT, BUT LIKE DURING THE RIGHT ALONG, JUST KNOWING HOW MUCH TIME THOSE TIMES THAT THEY HAD TO SIT AND DESCRIBE SITUATIONS. IS THERE A DICTATION ABILITY IN THIS NEW SYSTEM? >> I BELIEVE THERE IS. I KNOW A LOT OF THEM ARE JUST NOT THAT ACCURATE AND THAT GOOD TO WHERE WE'RE TRUSTING THEM WHOLEHEARTEDLY AND SO THEY'RE STILL TYPING. BUT THERE ARE ADVANCES, [01:20:01] AND THERE'S SYSTEMS OUT THERE THAT ON PAPER, THEY'RE SAYING THAT ESSENTIALLY, AS YOU'RE WALKING THROUGH A SCENE, YOU'RE DICTATING WHAT'S GOING ON INTO YOUR CAMERA, AND IT'S TYPING FOR YOU BACK AT THE CAR. IN REAL LIFE, IT'S JUST NOT THERE YET. BUT ONCE WE GET THERE, AXON HAD A PROGRAM THAT WE'RE LOOKING AT THAT WAS DOING THAT. BUT IT'S JUST NOT.[OVERLAPPING] >> YOU MAY NOT LIKE. >> YOU STILL HAVE TO GO THROUGH. >> MANUALLY DO A TEXT WHILE YOU MIGHT BE DRIVING AND THEN THE PERSON CALLS YOUR WHAT AND THEN YOU READ IT. >> SOMEBODY STEPS ON A TECH.[LAUGHTER][BACKGROUND] >> HOPEFULLY WE GET THERE AT SOME POINT BECAUSE IT WOULD BE VERY HELPFUL IN TIME SAVING. THERE'S AGENCIES OUT THERE THAT HAVE REPORT LINES AND YOU CALL IN AND YOU JUST GIVE YOUR NARRATIVE. BUT WHATEVER YOU SAY, THEY'RE GOING TO TYPE, SO IF YOU'RE AND, AND, AND OR YOU SAY SNUFF IT'S TYPING IT OUT, SO IT'S WHAT IN THE REPORT, SO IT'S OF TOUGH. WITH AI DOING WHAT AI IS DOING, I THINK THAT >> BUT THE GOOD NEWS IS WE'RE BUYING THIS AT THE BEGINNING OF LIFE, THIS SOFTWARE, WE'RE NOT BUYING IT AT THE END OF LIFE, SO AS THE SOFTWARE EVOLVES, THIS WILL BE PART OF IT, AND THIS SOFTWARE CAN GROW. IT'S JUST THAT THE OTHER ONE WE'VE GROWN IT TO IT CAN'T GROW ANYMORE. THIS IS A BETTER PLATFORM, AND IT IT'LL GET US THERE EVENTUALLY. TRUST ME, IF THERE'S MONEY TO BE MADE MOTOROLA, I'LL HAVE IT. >> THANK YOU VERY MUCH. THANK YOU, CHIEF. APPRECIATE IT. OKAY. THANK YOU. ALEX OR SHARON, ANY OTHER COMMENTS ON THIS? I'VE GOT TWO ITEMS, 10D IS IN DAVID. DONNA, WOULD YOU JUST ACQUAINT THE COUNCIL WHAT THAT MEANS. THIS ITEM IS NOT NECESSARILY FOR APPROVAL, THIS ITEM AS STATED IS FOR LETTING THE EXPIRATION OF OUR DISASTER DECLARATION EXPIRE ON AUGUST 30, NOT TO CONTINUE IT. I WANT TO MAKE SURE EVERYBODY UNDERSTANDS THAT. DONNA. >> IS THIS? >> IT IS. >> THAT IS CORRECT, MAYOR. THIS IS JUST COUNCIL'S DESIRE [NOISE] WHETHER OR NOT TO EXTEND THE DECLARATION OF DISASTER AND ALL OF THOSE AMENITIES, I GUESS, THAT CAME WITH THAT DECLARATION PREVIOUSLY. YOUR PACKET DOES INCLUDE AN ORDINANCE TO EXTEND, BUT IT ALSO INCLUDES A MEMO FROM DON STATING THAT HE WOULD NOT RECOMMEND EXTENDING IT AND SO BUT IS COUNCIL'S DECISION WHETHER OR NOT TO DO SO OR NOT. >> THERE'S NO NEED TO REALLY, IN MY MIND EXTEND IT, I VISITED WITH STAFF ON THAT. WE HAVE ALEX AND MARIE, ALEX. >> HOW MANY PEOPLE ARE STILL FILING PERMITS FOR FENCES, STUFF LIKE THAT? I GUESS THAT WOULD BE TIM FOR, THAT THIS WOULD COVER THOSE PERMIT EXEMPTIONS, STILL, CORRECT? >> IT DOES COVER IT. IT'S DROPPED UP CONSIDERABLY. I DON'T HAVE THE EXACT NUMBERS, BUT A LOT OF FOLKS FULLY GOT THIS VERY THIS NORM WASN'T SO TERRIBLE THAT THEY COULDN'T SNARK GETTING IT TOGETHER VERY QUICKLY AND WHAT WE SAW INITIALLY WAS A PUSH, BUT IT'S SOMEHOW, I'M NOT EXACTLY SURE THE NUMBERS. >> ROUGHLY A WEEK, WHAT DO YOU SEE? OBVIOUSLY IT WAS VERY HIGH BUT IF YOU COULD JUST OFF THE TOP OF YOUR HEAD THIS WEEK. >> THIS WEEK, PROBABLY JUST A HANDFUL, FOUR, FIVE, SIX, SOMETHING LIKE THAT. >> CAN WE SEPARATE THAT OUT IN THIS MOTION? >> YOU WANT TO CONTINUE TO WAIVE PERMIT FEES FOR FENCE?[BACKGROUND] >> THAT IS 30 DAYS. >> BUT IF WE DO THAT, LET'S PUBLICIZE IT SO EVERYBODY KNOWS WE'RE NOT DOING. >> SURE. >> MAKE SURE YOU PUBLICIZE IT BECAUSE THERE WAS CONFUSION. >> LIKE I KNOW SEVERAL OF MY NEIGHBORS ARE DOING[OVERLAPPING] >> I'M SORRY. SAY AGAIN. >> I WOULD PUT A BIG EMPHASIS ON PERMIT FEES, NOT PERMIT BECAUSE I GOT A LOT OF, THEY SAID THERE WERE WAIVED PERMITS THEY'RE WAVING THE FEE, BECAUSE THERE ARE PEOPLE WHO ARE WINTER TEXANS THAT LIVE HERE FULL TIME THAT GO SOMEWHERE FOR THREE MONTHS, AND THEY'RE JUST COMING BACK. >> I KNOW PEOPLE THAT WORK OFFSHORE, HUGE. >> THE WAIVE OF THE PERMIT FEE IS FOR PARKING DAMAGE ONLY, CORRECT? >> THAT'S IT. >> WE CAN ADDRESS THAT AFTER 30 DAYS TO GET IF IT NEEDS. >> WE CAN SEPARATE THAT, DONNA. >> WE CAN, DONNA. WE'LL SEPARATE THAT OUT. >> THANK YOU. >> GOOD POINT. >> LET ME JUST CLARIFY, YOU GUYS ARE NOT GOING TO EXTEND THE ORDINANCE, [01:25:05] BUT I DO BELIEVE TIM HAS THE ABILITY TO WAIVE THOSE PERMIT WITHOUT ANY ORDINANCE >> HE DOES. >> WE CAN DO THAT. >> CORRECT. WE COULD DELINEATE THAT IN THE MOTION. >> JUST TELL US TO, AND WE DO IT. >> YES, THAT BE BETTER WAY TO DO THAT. >> ALONG THE SAME LINES, WOULD WE STILL BE PICKING UP BERYL DEBRIS FOR? >> I'M MEETING WITH DUSTIN ON THAT HOPEFULLY TOMORROW WE'RE GOING TO START TAPERING THAT OFF. RIGHT NOW, WE'RE ALMOST BACK TO A REGULAR SCHEDULE, BUT WE'RE GETTING IT. WE'RE ACTUALLY GETTING SOME OF THE TREE TRIMMING COMPANIES THAT ARE DOING SOME OF THE POWER COMPANY WORK ARE LEAVING SOME A LITTLE BIT. WE'RE DEALING WITH THAT. WE'RE GOING TO WORK THROUGH THAT, BUT WE'RE GOING TO MESSAGE IT REALLY REALLY WELL. WE'RE STILL GETTING DEBRIS WITHOUT AN ISSUE, BUT THAT'S GOING TO PROBABLY BE RAMPING DOWN IN THE SAME TIME PERIOD. >> I THINK IT'D BE REASONABLE TO HAVE THE DEBRIS PICK UP COINCIDE WITH THE PERMIT BECAUSE A LOT OF THE PERMITS ARE GOING TO BE, FOR INSTANCE REBUILDING FENCES THAT WERE DESTROYED BY BERYL AND THOSE DESTROYED FENCES WOULD WIND UP. >> WHAT WE MIGHT DO IS CHANGE THE PROCEDURES A LITTLE BIT TOO IS THAT YOU LET US KNOW IF YOU HAVE THAT POWER DEBRIS SO THAT WAY WE CAN ADDRESS IT SEPARATELY IF WE NEED TO JUST SO IT DOESN'T SIT THERE FOR SO LONG. >> OKAY. >> VERY GOOD, MARIE. >> WE ARE GOING TO EXTEND THE NO PERMIT FEE AND PICKING UP THE DEBRIS. >> WE HAVE NOT STOPPED PICKING UP THE DEBRIS, YET? >> YEAH. >> DEBRIS DOESN'T NEED TO BE, BUT EXTENDING THE NO FEE, WE WOULD NEED TO SEPARATE THEM. >> BUT I KNOW SEVERAL PEOPLE. I HAVE NOT DONE MY FENCE YET, IT'S JUST SUPPORTED BY SOME BOARDS UP THERE. >> TRY TO GET A FENCE GUY. >> I KNOW IT'S HARD TO GET A FENCE AND A ROOF GUY, THAT'S WHY I NEED CLARIFICATION BECAUSE I THOUGHT I UNDERSTOOD THAT WE WOULD DO BOTH OF THOSE. >> THOSE ARE NOT COUNCIL ACTION, SO WE CAN DEAL WITH THAT. >> COOL. WE HAVE MARIE AND THEN ALEX. >> YEAH. I JUST WANTED TO FURTHER REITERATE BECAUSE ONE, I STILL SEE DEBRIS PILES. TWO, I'M STILL TRYING TO GET TXDOT TO PICK UP THREE DO LIVE. >> YEAH, WE TALKED ABOUT THAT YESTERDAY. >> WE'LL SEE THEM TOMORROW. BUT I'D LIKE TO SEE US LOOK AT THE PERMIT FEE THING AND THE DEBRIS THING EVERY 30 DAYS BECAUSE WE MIGHT NEED TO EXTEND IT. >> ACTUALLY, THOSE ARE NOT COUNCIL ACTIONS, JUST TELL ME WHAT YOU WANT. ALEX. >> LET'S SAY WE END PERMIT FEES ON SEPTEMBER 30TH. IF SOMEONE GETS A FENCE PERMIT OR THEY GET AN AGENT TO GET A FENCE PERMIT FOR THEM, AND THEY CAN'T GET TO IT FOR 60 DAYS. HOW LONG IS THAT PERMIT GOOD FOR? >> SIX MONTHS. >> YEAH. THEY HAVE THE ABILITY TO DO THEIR PERMIT. >> WE UNDERSTAND WITH THE FENCE PERMITS BECAUSE YOU GOT SOME PEOPLE MAY NOT HAVE A SURVEY AND YOU'VE GOT TO GET A SURVEY AND ALL THAT. >> YEAH, I UNDERSTAND THAT. >> VERY GOOD. LAST ONE, CATHERINE 11H. >> ALTHOUGH I WILL TELL YOU THAT THE PEOPLE WHO HAVE INSURANCE ON THEIR FENCES THAT INCLUDE A PERMIT FEE AND PART OF THE REIMBURSEMENT TO THE RESIDENT. >> 11H, ON THIS PARTICULAR ITEM, WOULD YOU JUST FOR THE SAKE OF THE COMMUNITY, AND SHARON COUNCILWOMAN LEWIS HAS BEEN WORKING VERY HARD ON THIS, WOULD YOU MENTION WHAT THAT'S FORWARD, PLEASE? >> SURE. IT IS A GRANT THAT WE'VE GOTTEN FROM THE TEXAS HISTORIC COMMISSION. SPECIFICALLY, THERE'S CERTIFIED LOCAL GOVERNMENT PROGRAM, AND WE'RE GOING TO USE IT TO DO A SURVEY OF HISTORIC SITES OF IMPORTANCE TO GALVESTON'S AFRICAN AMERICAN HERITAGE. >> YEAH. >> WE'RE REALLY EXCITED ABOUT THE PROJECT. >> YES, BOB. >> THAT'LL SURVEY, I GUESS, STRUCTURES. >> IT'LL SURVEY EXTENT STRUCTURES, BUT ALSO WE'LL BE TALKING ABOUT SITES THAT WERE OF IMPORTANCE THAT ARE NO LONGER THERE. >> I KNOW WE'VE DONE THIS BEFORE IN DIFFERENT CONTEXTS, BUT WILL YOU BE USING VOLUNTEERS FROM THE COMMUNITY AS PART OF THIS SURVEY? >> WE HAVEN'T REALLY WORKED ON THE SCOPE OF WORK YET. TYPICALLY, WHAT WE DO IS WE HIRE A PRESERVATION CONSULTANT, AND THEN THEY'LL WORK ON THEIR SCOPE. BUT THEY'LL DEFINITELY BE A LOT OF PUBLIC OUTREACH. >> THEN THAT WAS MY NEXT QUESTION. WHAT KIND OF PUBLIC OUTREACH THERE WOULD BE, BUT WE'LL WAIT AND SEE ON THAT. WHAT SCHEDULE IS THERE ON THIS? >> THE GRANT IS THROUGH THE END OF SEPTEMBER OF 26, SO WE HAVE TIME. OUR NEXT STEP IS TO PUT OUT THE RFP, THE REQUEST FOR PROPOSAL, AND THEN WE'LL SELECT THE CONSULTANT. >> GREAT. THANK YOU. >> WHAT WE'RE DOING HERE IS BASICALLY JUST IDENTIFYING. >> WE'RE IDENTIFYING PLACES WITH A GOAL FOR HISTORIC DESIGNATIONS. BUT THIS SCOPE IS IDENTIFICATION, AND THEN WE'LL WORK LATER PHASES ON DESIGNATIONS. YOU'LL BE ABLE TO GO BACK AND APPLY FOR ANOTHER GRANT TO CONTINUE THAT? >> YEAH. THESE GRANTS TYPICALLY COME OUT ONCE A YEAR. >> VERY GOOD. THANK YOU, CATHERINE. >> I'LL JUST MENTION THAT WE WERE SCORED THE HIGHEST OF THE STATES IN THE STATE. PROUD OF THAT. [01:30:01] >> I'M VERY PROUD OF THAT. >> THANK YOU. >> THANK YOU VERY MUCH. VERY GOOD. COUNCIL, WE HAVE GONE THROUGH ALL OF OUR CLARIFICATION OF OUR ITEMS HERE. IT'S 10:30. WE'RE GETTING READY TO GO INTO A LENGTHY DISCUSSION. WE'RE GOING TO TAKE A BREAK, I'D LIKE TO RECONVENE AT 10:37. EVERYONE IN THE COMMUNITY, WE ARE BACK FROM OUR BREAK. GLAD TO HAVE YOU BACK WITH US. IT IS 10:40 AM AND WE ARE NOW MOVING INTO ITEM 3B, PLEASE, JANELLE. [3.B. Discussion Of The FY 2025 Budget (C. Ludanyi - 1 hour)] >> ITEM 3B, DISCUSSION OF THE FY 2025 BUDGET. >> COUNCIL, I'D LIKE TO LEAD THIS DISCUSSION OFF WITH A FEW COMMENTS. FIRST OF ALL, I WANT TO THANK CSILLA LUDANYI AND THE OTHER STAFF, DAN, BRIAN, AND A NUMBER OF OTHER STAFF MEMBERS IN THE FINANCE DEPARTMENT. THEY SPENT COUNTLESS HOURS WORKING ON THIS BUDGET. A LOT OF PEOPLE FEEL THAT IT'S AN EIGHT TO FIVE JOB THAT THEY DO TO DO THIS. IT TAKES MANY MAN HOURS TO DO THIS AND A LOT OF EXPERTISE. I WANT TO THANK THE FINANCE DEPARTMENT AND CITY STAFF FOR BRINGING THIS TO US HERE. THIS IS GOING TO BE AN EDUCATIONAL EXPERIENCE, NOT ONLY FOR COUNCIL, BUT I'M HOPING THAT A LOT OF PEOPLE ARE WATCHING THIS PARTICULAR WORKSHOP TO EDUCATE THEMSELVES ON THIS BUDGET, AND WHERE WE'RE HEADING WITH THIS BUDGET. THERE WAS TALK ABOUT POSSIBLY AT ONE POINT EARLIER, THAT WE WEREN'T SCHEDULED NECESSARILY FOR A BUDGET DISCUSSION AT THIS TIME. BUT IN TALKING WITH STAFF, I FELT THAT IT WAS VERY IMPORTANT THAT WE START THIS BUDGET DISCUSSION NOW. CSILLA WILL BE GOING OVER THIS. SHE'LL BE TALKING ABOUT SCENARIOS, AND THE PROS AND CONS OF EACH SCENARIO AS WE GO THROUGH THIS BUDGET. AS YOU KNOW, EACH DECISION THAT WE MAKE ON THIS BUDGET HAS POSITIVES TO IT AND POTENTIAL NEGATIVES TO IT. I THINK IT'S IMPORTANT THAT COUNCIL UNDERSTANDS THAT AND NOT ONLY COUNCIL BUT THE COMMUNITY TO UNDERSTAND WHERE WE'RE GOING WITH THIS AND THE PROS AND CONS THAT ARE INVOLVED WITH THESE DECISIONS. ONE LAST COMMENT. I KNOW I DO, AND I THINK I CAN SPEAK FOR COUNCIL ON THIS THAT WHEN WE LOOK AT THIS BUDGET, IT'S NOT ONLY LOOKING AT WHAT IS THE MOST APPROPRIATE APPROACH FOR MANAGING THE PUBLIC MONIES AND MAINTAINING FINANCIAL STABILITY FOR OUR CITY IN THIS COMING YEAR, WHEN WE MAKE THESE DECISIONS, WE MAKE DECISIONS THAT HEADS US DOWN A PATH THAT SOMETIMES HAS RAMIFICATION FOR YEARS TO COME. FOR SO MANY YEARS, IN THE PAST, COUNCILS HAVE KICKED THE CAN DOWN THE ROAD ON MANY DECISIONS, AND WE ARE AT A POINT TODAY TO MAKE DECISIONS OF NOT KICKING THAT CAN DOWN THE ROAD, OF NOT ONLY LOOKING AT WHAT'S BEST FOR THIS COMING YEAR, BUT WHAT'S BEST FOR THE FUTURE OF THIS ISLAND AND THE CITY FROM A FINANCIAL STANDPOINT FOR MANY YEARS TO COME. SAYING THAT, CSILLA, I'M GOING TO TURN IT OVER TO YOU AND THANK YOU FOR BEING WITH US. >> GOOD MORNING, EVERYONE. HOW'S EVERYONE THIS MORNING? GOOD. I AM GOING TO SHARE MY SCREEN WITH YOU ALL FOR THE PRESENTATION. THAT WAY WE CAN MOVE THROUGH THE PRESENTATION. YOU GUYS CAN HEAR ME OKAY. EVERYBODY CAN HEAR WHAT I'M SAYING? FANTASTIC. IF YOU CAN HEAR ME AT SOME POINT, JUST LET ME KNOW. I'M GOING TO SHARE MY SCREEN AND YOU ALSO HAVE THE PRESENTATION AT YOUR SEAT. YOU CAN FOLLOW ALONG AND FEEL FREE TO ASK QUESTIONS AS WE GO. I BELIEVE YOU SHOULD BE ABLE TO SEE MY PRESENTATION NOW. >> WE CAN. >> IS THAT THE CASE? >>THE SCREEN WILL BE SHOWN TO THE PUBLIC? >> YES. >> FANTASTIC. WE ARE CONTINUING THE DISCUSSION THAT WE'VE STARTED ON THE BUDGET. WE'RE GOING BACK OVER SOME ISSUES THAT HAVE BEEN LOOKED AT OVER THE PAST TWO WEEKS SINCE COUNCIL RECEIVED THE PROPOSED BUDGET, WHICH IS ALSO POSTED ONLINE. WE'RE GOING TO GO THROUGH AND DISCUSS SOME OF THOSE THINGS THAT HAVE BEEN RAISED AS POTENTIAL ISSUES AND ALLOW [01:35:01] COUNCIL TO ASK ANY QUESTIONS THAT ARE GOING TO BE NECESSARY IN ADVANCE OF ADOPTION ON SEPTEMBER 12TH. LET'S SEE. JUST REVIEW, THIS IS WHERE WE'RE AT THE TIMELINE. TODAY IS AUGUST 22ND, AND WE ARE DISCUSSING THE BUDGET PRIMARILY, NOT THE CIP SO MUCH IN THIS CASE. THE PROPOSAL IS TO HAVE THE NOTICE THAT HAS BEEN SUBMITTED TO THE PAPER IS TO HAVE THE BUDGET AND TAX RATE PUBLIC HEARING ON THE SPECIAL MEETING ON SEPTEMBER 12TH. WE ARE PROPOSING HALF BUDGET ADOPTION AT THAT POINT, AS WELL AS THE ASSOCIATED PROPERTY TAX RATE RATIFICATION. THEN ON SEPTEMBER 19TH WOULD BE THE TAX RATE ADOPTION. IT IS IMPORTANT THAT THIS TIMELINE BE ADHERED TO AND THAT THIS IS WHAT HAS BEEN NOTICED TO THE PUBLIC. IF WE MOVE OFF OF THIS TIMELINE IN ANY WAY, WE WILL BE DELAYED AND THAT WE HAVE TO RE-NOTICE THE PUBLIC ON THESE ITEMS. THE PROPOSED BUDGET THAT WAS PRESENTED TWO WEEKS AGO AND THAT EVERYONE HAS IN THEIR HANDS, AS WE'VE DISCUSSED, WAS BASED ON A TAX RATE OF 0.428382. BUT WE WANTED TO DO A TAX RATE EXPLORATION. THIS IS A SLIDE YOU HAVE SEEN. IT WAS A SLIDE THAT WAS ORIGINALLY PRESENTED ON JULY 25TH WHEN WE DIDN'T HAVE A TAX RATE CALCULATION YET. IN THAT PRESENTATION, WHAT WE WERE LOOKING AT WAS THE TAX RATE FROM FISCAL YEAR '24 AND HOW THAT COMPARES TO OTHER COMMUNITIES IN THE AREA. SPECIFICALLY, THE SAME TAX RATE FOR THEM IN FISCAL YEAR '24, THAT WOULD BE TAX YEAR '23. WE CAN'T KNOW HOW WE'RE GOING TO COMPARE IN THE COMING YEAR, OBVIOUSLY, BECAUSE MOST OF US HAVE NOT SET OUR TAX RATE. BUT AS WE SIT CURRENTLY BASED ON THE TAX RATES THAT HAVE BEEN ADOPTED, GALVESTON IS VERY MUCH IN THE MIDDLE OF THE PACK. YOU'LL NOTICE AS WE DISCUSSED PREVIOUSLY, THAT WE HAVE A VERY SMALL PERCENT DEBT SERVICE COMPARED TO THE OTHER COMMUNITIES, WHICH SPEAKS A LOT TO MANAGEMENT OF DEBT, BUT IT ALSO SPEAKS TO MAYBE RECENT INVESTMENT IN INFRASTRUCTURE ON THE GENERAL DEBT SIDE OR THE FACT THAT MAYBE OTHER COMMUNITIES HAVE INVESTED MORE IN THOSE AREAS. BUT WHERE WE SAT IN FISCAL YEAR 24 WITH OUR TAX RATE WAS VERY MUCH THE MIDDLE OF THE PACK, AND BASED ON THE WAY TRUTH AND TAXATION WORKS, WE CAN REST ASSURED THAT NOW OF THE COMMUNITIES ARE GOING TO BE MOVING SO MUCH OFF OF THEIR CURRENT RATE THAT WE WOULD MOVE IN EITHER DIRECTION A WHOLE LOT. ALSO, JUST TO TALK ABOUT THE HISTORIC PROPERTY TAX RATE IN GALVESTON SPECIFICALLY, YOU'LL SEE THAT IN FISCAL YEAR '21, THE TAX RATE WAS WELL OVER $0.50 PER $100 EVALUATION THAT DRAMATICALLY WENT DOWN OVER THE LAST FOUR YEARS OR THREE YEARS. THE ACTUAL TAX RATE DECREASED EACH OF THE THREE CONSECUTIVE YEARS AFTER FISCAL YEAR '21. AS WE'RE LOOKING AT WHAT MAY OR MAY NOT OCCUR IN FISCAL YEAR '25 IN THE MAINTAINED RATE OF 408850, WHICH IS KEEPING THE SAME RATE YEAR-OVER-YEAR, IS AN OPTION THAT WAS PRESENTED IN JULY BEFORE WE HAD LOOKED AT THE TAX RATE AND I HAD CALCULATED THAT. THE ORANGE BAR YOU SEE THERE, MARKS ABOUT WHERE THE PROPOSED RATE THAT THE BUDGET WAS CREATED ON COMPARED TO THE OTHER YEAR. WHILE THE PROPOSED BUDGET HAS THIS PROPOSED TAX RATE, THE INCREASE IS RELATIVELY INSIGNIFICANT COMPARED TO THE FIVE YEAR TREND. IT DOESN'T EVEN GET YOU BACK TO FISCAL YEAR '23 AS FAR AS TAX RATE GOES. AS A REMINDER, A PENDING ON THE TAX RATE IS APPROXIMATELY 1.26 MILLION, THIS FLUCTUATES A LITTLE BASED ON VALUE AND TAX RATE, BUT IN THIS SCENARIO, THAT'S APPROXIMATELY WHAT IT WAS. AS THE MAYOR SAID, THERE ARE SEVERAL ITEMS THAT WE WANTED TO TALK ABOUT AS FAR AS SCENARIOS AND HOW IT COMPARES AS COUNCIL MAKES A DECISION HOW TO MOVE FORWARD WITH THE FISCAL YEAR '25 BUDGET. THE NO NEW REVENUE TAX RATE, YOU'LL SEE THE TAX RATES ACROSS THE TOP AND THAT LIKE PINK PURPLE LINE. THE NO NEW REVENUE TAX RATE IS 0.391198. THE CURRENT TAX RATE FOR FISCAL YEAR '24 IS THE 408850. THE MAX TAX RATE, WHICH WAS ESTABLISHED BY COUNCIL AT THE LAST COUNCIL MEETING IS THE 428382. THIS IS IN FACT THE RATE THAT THE PROPOSED BUDGET THAT YOU HAVE IN YOUR HANDS CONTAINS. THEN HALFWAY IN BETWEEN THE TWO, LET'S SAY A COMPROMISE SCENARIO OR JUST UNDERSTANDING THOSE RELATIONSHIPS IS 418616, [01:40:06] WHICH IS VERY SIMILAR TO ALMOST A PENNY INCREASE OVER THE CURRENT RATE. YOU'LL SEE THE AMOUNT OF PROPERTY TAX REVENUE THAT COMES TO THE GENERAL FUND BASED ON EACH TAX RATE AS WELL AS THE LIBRARY CONTRIBUTION BACK TO THE CITY. YOU'LL SEE THAT THAT DECREASES AS THE TAX RATE INCREASES, AND THIS IS DRIVEN BY THE PERCENT OF THE TAX RATE THAT IS MADE UP OF MAINTENANCE AND OPERATIONS. IT IS CORRECT. YOU'LL SEE SALES TAX WHERE IN EACH SCENARIO AFTER THIS, YOU'LL SEE THAT WE'RE HOLDING IT STEADY. WE'RE NOT CHANGING OUR PROJECTIONS ON SALES TAX. IN FACT, WE'RE PRETTY CERTAIN THAT IT'S NOT GOING TO BE AN INCREASE IN SALES TAX YEAR-OVER-YEAR. LONG-TERM PARKING AND CRUISE PASSENGER CHARGES. THESE ARE HIGHLIGHTED BECAUSE I'VE UPDATED THEM BASED ON THE MAYOR'S INFORMATION FROM THE WARS BOARD. THESE ARE, IN FACT, WHAT THE PORT IS PROJECTING FOR FISCAL YEAR '25, THESE AMOUNTS. THE INCREASES THAT WE HOPE TO SEE WON'T COME INTO PLAY UNTIL FISCAL YEAR '26 BECAUSE OF THE TIMING OF THE NEW CRUISE SHIPS AT THE MSC TERMINAL. THESE AMOUNTS ARE DIRECTLY RELATED TO WHAT THE PORT IS PROJECTING FOR FISCAL YEAR '25. THEN THE REMAINING REVENUE IN THE GENERAL. >> WE HAVE A QUESTION. >> YES, MA'AM. >> YOU KEEP REFERRING TO THE PORT, WHAT ABOUT THE PRIVATE PARKERS? >> THEY'RE IN THERE. >> THEY'RE IN THERE. >> THEY'RE INCLUDED IN THERE. THE PORT NUMBER IS ACTUALLY ABOUT 1.2 MILLION, 1.25 MILLION. BUT THE REMAINING 600,000 IS RELATED TO THE NON-PORT OWNED, PRIVATE OWNED PARKING LOTS. ALL OTHER REVENUE HELD STEADY, THE TOTAL REVENUE PROJECTIONS AT EACH ONE OF THESE TAX RATES, YOU'LL SEE RATES WERE ABOUT 78.9 MILLION TO 82.7 MILLION. IN THE GRADE BELOW THAT, YOU'RE GOING TO SEE A NUMBER. YES, SIR. >> EXCUSE ME, JUST A SECOND. JUST FOR THE COUNCIL'S BENEFIT ON THE CRUISE PASSENGER CHARGES FROM THE PORT. WE BROKE GROUND ON CRUISE TERMINAL 16. SOME OF THE COUNCIL MEMBERS WERE THERE MONDAY. THEY WILL NOT SAIL OUT OF HERE UNTIL THE END OF '25. UNFORTUNATELY, THE BUMP THAT WE MIGHT RECEIVE ON PASSENGER TARIFF WILL NOT OCCUR IN THIS COMING FISCAL YEAR. GO AHEAD. >> THANK YOU. THE GRADE OUTLINE IS SHOWING YOU WHAT THE INCREASES IN PROPERTY TAX REVENUE FROM THAT NO NEW REVENUE RATE. IT'S NOT SEQUENTIAL, BUT EVEN THE 3.8 MILLION ON THE FY 25 MAX AMOUNT IS BASED ON A COMPARISON TO THE NO NEW REVENUE RATE, NOT ANY OF THE MIDDLE PROPOSED RATES. ON THE EXPENDITURE SIDE, WE HAVE SEVERAL ITEMS THAT ARE INCREASES THAT WE ARE CONTRACTUALLY OBLIGATED TO. WE WANT TO MAKE SURE THAT COUNCIL UNDERSTANDS THAT THESE REALLY ARE IMMOVABLE ITEMS. THE INFRASTRUCTURE AND DEBT FUND IS TIED TO 8% OF GENERAL FUND REVENUE. WHEN THE REVENUE NUMBER INCREASES, THAT TRANSFER TO THE INFRASTRUCTURE AND DEBT SERVICE FUND ALSO INCREASES. WITH EACH HIGHER TAX RATE, YOU'LL SEE THAT THERE'S AN INCREASE RELATED TO THAT TRANSFER. THE POLICE CBA FOR FISCAL YEAR '25 REPRESENTS ABOUT $1.3 MILLION. THE FIRE CBA REPRESENTS ABOUT 461,000. >> SEPARATELY FROM THAT THE INCREASED CONTRIBUTION TO THE FIRE PENSION OF ABOUT 1.5% ON THE CITY'S SIDE, THE FIRE FIGHTERS WILL ALSO INCREASE THEIR CONTRIBUTION BY THAT 1.5% IS $172,000. THE EMS CONTRACT THAT THE CITY HAS TO PROVIDE EMS SERVICES THROUGHOUT THE ISLAND IS THROUGH GALVESTON COUNTY HEALTH DISTRICT, AND THEIR COSTS ARE INCREASING BY $747,000 IN FISCAL YEAR '25. THERE'S REALLY NOT AN ALTERNATIVE TO THIS ITEM, EXCEPT FOR CUTTING SERVICES. IT WOULD BE A SITUATION WHERE THE EXISTING SERVICES THAT EMS PROVIDES WOULD NO LONGER BE AT THE SAME LEVELS. HEALTH INSURANCE IS PROJECTED TO INCREASE 10% YEAR OVER YEAR, WHICH IS ABOUT $676,000 IMPACT IN THE GENERAL FUND. THESE EXPENDITURE COMMITMENTS ARE ABOUT $3.3 MILLION, A LITTLE OVER $3,374,332. THESE ARE INCREASES OVER FISCAL YEAR '24. [01:45:01] IT'S IMPORTANT TO UNDERSTAND THAT THESE ARE NOT AMOUNTS THAT [OVERLAPPING] >> CSILLA, IF MAY INSERT AT THIS POINT. IF YOU LOOK AT TOTAL REVENUE GENERATED, AND YOU LOOK AT WHAT YOU SEE THE LINE THAT SAYS REMAINING GENERAL FUND EXPENDITURES. WE ABSENT THESE COMMITMENTS MADE BY COUNCIL TO THE PUBLIC SAFETY UNIONS AND THESE OTHER AREAS, WE WOULD BE AT THE NO NEW REVENUE RATE. I JUST WANT TO POINT THAT OUT TO YOU. WE WOULD BE WITHIN A FEW THOUSAND BUCKS. >> YOU'LL NOTE THAT WHITE LINE. >> CITY ABSORBS. >> THE CIVILIAN COLA IS LISTED THERE WITH NO AMOUNT DEDICATED TO IT. THE PROPOSED BUDGET YOU HAVE IN YOUR HANDS INCLUDED A 4% COLA, BUT IN TRYING TO BALANCE THE BUDGET AT A RATE LOWER THAN THE 428,382. WE'RE JUST UNABLE TO DO THAT WITH A CIVILIAN COLA IN THERE AT THE RATES THAT WERE DISCUSSED. YOU'LL SEE IN THE PARENTHESES I'VE LISTED THAT 5% COLA IS ABOUT $910,000 IN THE GENERAL FUND, 4% 728,000 AND SO ON. IT'S IMPORTANT THAT COUNCIL UNDERSTAND THAT THE PROPOSAL WE'RE TALKING ABOUT HERE, THE NUMBERS YOU SEE DO NOT INCLUDE ANY CIVILIAN COLA ALTHOUGH IT WAS INCLUDED IN THE ORIGINAL PRESENTED BUDGET. IF WE'RE NOT LOOKING AT THAT MAX PROPERTY TAX RATE NUMBER, WHICH I THINK IS PART OF A CONCERN, THEN WE'RE JUST UNABLE TO SATISFY THAT CIVILIAN COLA BECAUSE THERE ISN'T A CONTRACTUAL REQUIREMENT TO DO THAT. IT IS ADDING THAT COST INTO PERPETUITY WITHOUT A CORRESPONDING REVENUE. TOTAL, YOU'LL SEE THE REMAINING GENERAL FUND EXPENDITURES THAT EXCLUDES ALL OF THESE CONTRACTUAL ITEMS THAT ARE INCREASING EVERY YEAR IS ABOUT $79 MILLION. AS BRIAN NOTED, IT'S JUST SLIGHTLY OVER THAT REVENUE AT THE NO NEW REVENUE RATE. TOTAL EXPENDITURES WITH THE NEW CONTRACTUAL ITEMS ARE ABOUT $82.4 MILLION. YOU'LL SEE THAT GOES UP A LITTLE BIT IN EACH ONE OF THESE SCENARIOS, AND THAT'S BECAUSE OF THE INCREASE TO THE INFRASTRUCTURE AND DEBT SERVICE FUND. THERE'S SOME EXPENDITURE DECREASES THAT WE'VE LOOKED AT, WHICH AT THIS MOMENT, TOTAL ABOUT $342,000. THAT BOTTOM LINE, YOU SEE THERE THE REVENUE NEEDED AVAILABLE OR NEEDED. YOU'LL SEE THAT AT THE NO NEW REVENUE RATE, WE STILL NEED $3.1 MILLION TO BALANCE THE BUDGET BASED ON THE SCENARIO YOU HAVE PRESENTED. THAT OBVIOUSLY DECREASES WITH EACH PROPERTY TAX RATE SCENARIO. THE CURRENT TAX RATE OF 408,850, WE STILL NEED TO FIND $1.5 MILLION BASICALLY IN ORDER TO BALANCE THE BUDGET. I'M HAPPY TO ENTERTAIN ANY QUESTIONS ON THIS SLIDE BECAUSE THERE'S A LOT GOING ON. >> CSILLA, JUST TO COMMENT ON THAT. AS YOU KNOW, AND I THINK A NUMBER OF THE COUNCIL MEMBERS ARE IN SUPPORT OF A COLA FOR CIVILIAN EMPLOYEES. I WAS THINKING OF A 5% COLA ON THAT. IF WE KEPT THE TAX RATE FLAT, THAT WOULD MAKE THE DEFICIT WE'D HAVE TO MAKE UP PROBABLY AROUND 2.4 MILLION, 2.5 SOMEWHERE IN THERE. >> THAT IS CORRECT. ONCE AGAIN, ONE OF THE CONCERNS THAT WE HAVE IS ALL OF THESE ARE ONGOING INCREASES. THEY'RE NOT ONE TIME EXPENDITURES, AND SO WE CAN EXPECT TO HAVE THESE PLUS THE NEXT YEAR. THE ONES THAT WE ARE CONTRACTUALLY OBLIGATED TO, WE HAVE TO FIND A REVENUE SOURCE, BUT TO COMMIT TO COLAS IN A SITUATION WHERE YOU DON'T HAVE A RECURRENT REVENUE SOURCE CAN BE VERY RISKY FOR THE CITY. >> MAYOR, MAY I ASK A QUESTION. >> YES, SIR. GO RIGHT AHEAD. >> CSILLA, CAN YOU EXPLAIN THE LIBRARY CONTRIBUTION, HOW WITH A NO NEW REVENUE, IT'S 1.8, AND THEN AT THE MAX, IT'S 1.4. DIDN'T THEIR TAX RATE JUST SET AT LIKE 0.5 OR WHATEVER IT IS 0.05? >> DOES IT HAVE TO DO WITH A NEW CONTRACT? >> YES. >> CSILLA, CAN EXPLAIN. >> ESSENTIALLY, WHAT HAPPENS IS THE PORTION OF THE TAX REVENUE WE GET IT THAT IS DERIVED ON OUR REGULAR PROPERTIES, IT WOULD INCREASE. BUT THERE'S A FROZEN PART OF THE TAXABLE REVENUE THAT THE CITY GETS ON THE PROPERTIES THAT WERE FROZEN AT AN EXISTING VALUE. THAT PORTION IS SPLIT OUT BY RATIO. AS THE TAX RATE GOES UP, THE PORTION OF THE TAX RATE THAT INCREASES IS A MAINTENANCE AND OPERATIONS PORTION AND SO IT MAKES UP A LARGER PERCENT OF THE TAX RATE SPLIT. IF MEGAN'S OPERATION GOES OUT, [01:50:02] THAT MEANS THAT THE PERCENT GOING TO DEBT SERVICE OR LIBRARY INHERENTLY GOES DOWN A LITTLE, AND OF THAT FROZEN PART, WHICH IS GOING TO BE FLAT, REGARDLESS OF WHAT YOUR TAX RATE IS, THEY GET A SMALLER PERCENTAGE OF THE FROZEN PART AND THEREFORE, DON'T HAVE TO PAY AS MUCH BACK. [OVERLAPPING] I DON'T KNOW IF THAT MAKES SENSE. >> MY FOLLOW UP IS THAT IF THIS NUMBER CONTINUES TO DECREASE BY $75,000 OR $100,000 A YEAR, WHAT DOES THIS LOOK LIKE IN FY '29? >> TIME OUT, NO. THIS IS NOT WHAT THEY'RE GETTING. THIS IS THE REVENUE THEY'RE BRINGING BACK TO US [OVERLAPPING] SEEING AN INCREASE. [OVERLAPPING] THE SAME INCREASE THAT WE SEE. GO AHEAD. I'M SORRY, MAYOR. >> WELL, ANOTHER WAY OF LOOKING AT THIS, AS SOME OF THE COUNCIL MEMBERS MAY REMEMBER, WE REDID A CONTRACT WITH THE LIBRARY. IF WE HAD NOT DONE THAT, THIS REVENUE STREAM WOULD BE VIRTUALLY NOTHING COMING THROUGH HERE. >> CORRECT. >> WE ARE GETTING FUNDS BACK IN THAT CONTRACT, AND CSILLA, I THINK THE MOST THAT THE LIBRARY CAN GO UP IS BASICALLY THE MOST THAT THE CITY GOES UP, IS THAT RIGHT? >> THAT'S CORRECT. IT IS BASED ON THE PERCENT INCREASE THAT IS DISCLOSED ON THE BUDGET COVER. THIS SPECIFIC CALCULATION WILL CHANGE EVERY YEAR IN THAT IT'S COMPARED TO TRUTH AND TAXATION. I THINK IN EVERY SITUATION, THERE'S GOING TO BE SOME FLUCTUATION BASED ON HOW MANY NEW FROGS AND PROPERTIES YOU HAVE, WHAT THAT TOTAL AMOUNT IS, AND WHAT TAX RATE IS SET. I WOULD SAY THAT THE LIBRARY CONTRIBUTION BACK TO THE CITY COULD CHANGE EVERY SINGLE YEAR. I DON'T THINK THIS IS A TRIM LINE. IT'S JUST SPECIFIC TO THE WAY THE TAX RATE IS CALCULATED THIS YEAR. >> GO AHEAD, DAVID? >> WHAT I'M TRYING TO UNDERSTAND IS WHAT IS THAT FORECASTED TO BE LONG TERM AND MAYBE I NEED TO GO TO MY LONG TERM. IN OTHER WORDS, ARE WE GOING TO COME TO A POINT WHERE WE'RE GOING TO NEED TO RENEGOTIATE THAT CONTRACT WITH THE LIBRARY? >> I DON'T THINK SO. ESSENTIALLY, THE CALCULATION IS SUCH THAT THEIR INCREASE IS LIMITED TO WHAT OUR INCREASE IS. WE CALCULATE WHAT THAT FULL $0.05 IS, AND THEN FROM THAT, THEY KICK BACK EVERYTHING THAT IS MORE THAN THEY'RE ALLOWED TO INCREASE. I THINK IT'S A VERY REASONABLE AGREEMENT, AND I THINK IT ACCOMPLISHES WHAT WE NEED. IT'S JUST ONE OF THE NUMBERS THAT FLUCTUATES A LITTLE BASED ON THAT TAX RATE CALCULATION. >> I HAVE A QUESTION. >> YES, MA'AM. >> I REMEMBER BRIAN SAYING THIS LAST TIME ABOUT THE SALES TAX. WE'RE LEAVING IT FLAT. BUT MY QUESTION IS WHY THIS PREDICTION, IF WE'RE LOOKING AT THE PARK BOARD IS DOING A MAJOR ADVERTISEMENT TO BRING IN TOURIST, THE NEW SHIP WILL BE COMING IN NEXT, BUT WHY ARE WE FLATTING THE SALES TAX? >> WE HAVE MODELING FOR THIS. MIKE LOFTON LEFT IT WITH US. THIS MODELING HAS PROVED TO BE ACCURATE WITHIN 1% THROUGH MIKE'S TENURE WITH US HERE AT THE CITY. CSILLA, WOULD YOU LIKE TO ELABORATE FURTHER ON THAT? >> YES. IN FISCAL YEAR '24, AS WE'VE DISCUSSED, WE'VE SEEN A MILLION DOLLAR DECREASE OVER WHAT WAS PROJECTED, WHICH IS RELATIVELY SIGNIFICANT. THAT'S PART OF WHAT'S CAUSING THE DECREASE IN OUR FUND BALANCE BECAUSE THERE'S A MILLION DOLLARS THAT WE'RE NOT GETTING IN REVENUE THAT WE PROJECTED IN THE BUDGET THAT WE WERE GOING TO RECEIVE. SPECIFICALLY, THAT PROJECTION CAME BEFORE BERYL, AND WE HAVE REASON TO BELIEVE THAT EVEN THOUGH THERE WILL BE SOME INCREASES IN SUPPLY PURCHASES RELATED TO BERYL, WE WILL SEE A DOWNTURN IN SALES TAX IN JULY AND AUGUST THAT ARE GOING TO ACTUALLY IMPACT OUR BOTTOM LINE A LITTLE MORE LEAVING FISCAL YEAR '24. EXCUSE ME. AT THIS POINT, WE DON'T HAVE ANY INDICATION ECONOMICALLY THAT THERE'S GOING TO BE A LARGE SURGE IN GROWTH WITH INFLATION STABILIZING. A LOT OF THE GROWTH IN SALES TAX WAS SOMEWHAT INFLATION DRIVEN, AND WE DON'T HAVE ANY HUGE INFUSIONS OF CASH COMING INTO THE SYSTEM LIKE OCCURRED POST COVID. WE DON'T HAVE ANY REASON TO BELIEVE BASED ON THE ECONOMIC FORECASTS THAT WE'VE RECEIVED FROM VARIOUS GROUPS THAT THERE'S GOING TO BE A LARGE INCREASE IN SALES TAX. THIS NUMBER THAT IS IN THE BUDGET IS A 1% INCREASE YEAR OVER YEAR BASED ON OUR PROJECTIONS FOR ACTUALS FOR FISCAL YEAR '24. IT'S NOT THAT WE'RE PROJECTING NO INCREASE, [01:55:01] WE JUST BELIEVE IT'S GOING TO BE VERY MODERATE COMPARED TO TRENDS IN THE LAST FIVE YEARS. >> MARIE, YOU WANT TO SAY SOMETHING? >> YEAH. HAVE YOU LOOKED AT THE NUMBERS FROM MIKE? >> I DON'T BELIEVE THAT'S COMPARATIVE, 80% OF OUR HOMES WERE DAMAGED AFTER IKE. >> WELL, 90% OF THE HOMES IN MY DISTRICT HAD SOME DAMAGE AND THEY'RE FIXING IT. >> WE COULD GUARANTEE THEY WERE GOING TO BUY ALL THEIR MATERIALS IN GALVESTON AND THEIR CONTRACTORS WE ALL FROM GALVESTON, BUT THE MODEL TAKES INTO ACCOUNT THOSE THINGS. >> BRIAN, YOU HAD CHECKED WITH SOME OF THE [OVERLAPPING] >> THEY THEY'RE MODERATELY UP. >> WHO DID YOU CHECK WITH? >> I TALKED TO MCCOYS AND THEY'RE MODERATELY UP, AND THAT'S WHO REALLY REALLY SMOKED IT AFTER HURRICANE IKE BECAUSE THEY WERE BUT WE'RE NOT SEEING PEOPLE BUYING LARGE PURCHASES OF PILINGS AND THINGS LIKE THAT. THEY'RE BUYING FENCE PICKETS AND POST AND MINOR ROOFING MATERIALS AND THINGS LIKE THAT. THERE CERTAINLY WILL BE A BUMP AND AN INCREASE IN THESE AREAS. BUT ANY SUGGESTION THAT IT'S GOING TO BE A QUALITY IS STRICTLY ANECDOTAL AND NOT ACCURATE AT ALL. >> I WOULD SAY THIS TOO. THIS FLAT SALES TAX IS NOT A SURPRISE. A YEAR AGO I ATTENDED A MEETING THAT GDP SPONSORED, BROUGHT IN A ECONOMIST THAT TALKED ABOUT THE FUTURE, AND HE PREDICTED THAT FOR THE NEXT TWO, THREE YEARS, THE SALES TAX AND PEOPLE GETTING OUT AND MOVING INTO TOURIST ORIENTED SPOTS, ESPECIALLY FOR GALVESTON IS GOING TO STAY FAIRLY FLAT. WE KNEW THIS COMING UP THERE ABOUT A YEAR AGO, AND THEN THIS COMING YEAR, WE GOT HIT WITH A DOUBLE WHAMMY. WE HAD A PREDICTION ACROSS THE BOARD FOR THE NATION THAT IT WAS GOING TO BE FLAT AND THEN WE HAD HURRICANE BERYL, AND THEN WE FOLLOWED THAT WITH EIGHT DAYS OF RAIN, AND WE'RE STILL NOT OUT OF THE HURRICANE SEASON. >> WE GOT REALLY HIT ON THAT SECTION. >> I WILL TELL YOU THAT THE NUMBER THAT'S IN HERE IS ME TWISTING CSILLA. SHE WOULD HAVE PROBABLY PREFERRED EVEN A LOWER NUMBER THAN JUST BASED ON THE MODEL. I'M A LITTLE BIT MORE OF AN OPTIMIST THAN THE MODELS ARE PREDICTING. WE'RE OUT ON A LIMB WITH THIS ONE AS IT IS. I CAN TELL YOU WE WERE TRENDING DOWN BEFORE BERYL. >> WE WERE. >> I DO HAVE ANOTHER QUESTION. I CALLED YOU ABOUT THIS THE OTHER DAY, CSILLA. THIS IS ALL RELATED TO IT. I THINK OUR ESTIMATIONS ON PROPERTY TAXES, I WOULD LIKE A LITTLE BIT MORE EXPLANATION ON THAT BECAUSE I DON'T THINK THEY'RE ACCURATE. I THINK THEY'RE UNDERESTIMATED. >> WELL, I APOLOGIZE FOR NOT GETTING ALL THE INFORMATION YESTERDAY, BUT I'VE BEEN HOME SINCE YESTERDAY. IN LOOKING AT THE INFORMATION THAT WAS PRESENTED, AND IT IS PRESENTED IN THE VERY BACK OF YOUR BUDGET BINDER, YOU WILL SEE THE TRUTH IN TAXATION CALCULATION. THAT CALCULATION IS UTILIZING THE ESTIMATES THAT WERE RECEIVED FROM GALVESTON COUNTY APPRAISAL DISTRICT AT THE END OF JULY. BASED ON THOSE ESTIMATES, THE TAXABLE VALUE THAT HAS BEEN ESTABLISHED FOR THIS CURRENT TAX YEAR FOR FISCAL YEAR '25 IS THE $11.2 BILLION. I KNOW THAT IT MAY LOOK CONSERVATIVE. BUT UNFORTUNATELY, THOSE ARE THE NUMBERS AS WE'RE REQUIRED TO CALCULATE THEM. PART OF THAT IS IMPACTED BY NEW FREEZE PROPERTIES. PART OF THAT IS IMPACTED BY THE AREAS IN WHICH THERE WERE GROWTH VERSUS THE AREAS WHERE THERE WAS NO GROWTH IN VALUE. IT IS IMPACTED BY THE EXEMPTIONS AS WELL. WHILE IT MAY ULTIMATELY BE CONSERVATIVE, IT IS PER THE CALCULATION THAT TRUTH IN TAXATION PROVIDES US. THAT 11.2 BILLION IS THE NUMBER THAT WE HAVE TO GO BY BASED ON THAT. >> CSILLA, IN THE PAST, OUR PROJECTIONS FOR PROPERTY TAX RATE AND SO FORTH, AT THIS POINT FOR THAT PARTICULAR FISCAL YEAR, WE'VE BEEN FAIRLY CLOSE, FAIRLY ACCURATE ON THAT, HAVEN'T WE? >> YEAH. IN GENERAL, ESSENTIALLY, WE GIVE AN ESTIMATE IN APRIL, AND THEN THERE'S ALL FLUCTUATION THROUGHOUT THE SUMMER AS PEOPLE CONTEST THEIR VALUES. AS I DISCUSSED WITH COUNCILMAN ROB, RIGHT NOW, IT LOOKS LIKE THERE WAS ABOUT A 19% DECREASE FROM APRIL UNTIL THE FINAL TAXABLE VALUE THAT WE USED. ONE OF THE THINGS THAT WE DISCUSSED IS THAT SEEMS LIKE A LOT. [02:00:01] IT'S SIMPLY, I THINK A SYMPTOM OF THE WAY THE HOUSING MARKET IS WORKING RIGHT NOW, THE WAY REAL ESTATE IS WORKING RIGHT NOW, IT'S A LITTLE BIT UNPREDICTABLE. MARKET VALUES ARE A LITTLE BIT UNPREDICTABLE. I THINK AS CAD HAS LOOKED AT THESE VARIOUS PROPERTIES, THERE'S JUST BEEN MORE DECREASES IN THAT ESTABLISHED MARKET VALUE, AND THEREFORE, THE TAXABLE VALUE COMPARED TO WHAT WAS ESTIMATED IN APRIL. BUT IT'S NOT THAT SIGNIFICANTLY DIFFERENT. FROM THE LAST TWO YEARS MAYBE PREVIOUS TO THAT, THE CHANGES FROM APRIL TO JULY WERE NOT AS SIGNIFICANT. I DO THINK PART OF THAT IS A RESULT OF THE REAL ESTATE MARKET IN GENERAL BEING IN A MORE PRECARIOUS SITUATION AND WITH LESS STABILITY IN THOSE TREND LINES. >> WELL, I STILL QUESTION THE LOSS AND VALUE. WHEN YOU LOOK AT THE SIGNIFICANCE BETWEEN '23 AND '24, IT SEEMS EXCESSIVE. PLUS, ALSO I'M NOT FINDING WHERE YOU'RE ADDING BACK THE NUMBER OF THE TAX CEILING. >> IN OUR BUDGET. GO AHEAD. >> THE TAX CEILING ITEMS ARE ADDED BACK IN THE CALCULATION. SINCE I'M NOT THERE AT THE EXACT MOMENT AND I DON'T HAVE THE CALCULATION IN FRONT OF ME, I CAN'T TELL YOU WHAT LINE IT'S ON IN THE CALCULATION, BUT WE CAN CERTAINLY MEET OFFLINE, AND I'M HAPPY TO GO THROUGH THE CALCULATION WITH YOU. AS A PART OF THE TRUTH IN TAXATION CALCULATION, WE ADD BACK THOSE FROZEN VALUES ON BOTH SIDES, BOTH FISCAL YEAR '24 AND FISCAL YEAR '25, WHAT OCCURRED AND HOW IT'S GOING TO COMPARE TO WHAT WE PROJECT TO OCCUR. BOTH OF THOSE NUMBERS ARE TAKEN INTO CONSIDERATION TO GET TO THE TAX RATE. >> I'M SORRY THAT YOU'RE FEELING SO BAD. I FEEL BAD THAT WE'RE MAKING YOU SPEAK, BUT I STILL THINK THAT WE HAVE AN ACCURACY IN THAT NUMBER WHICH WITHDRAW OUR ENTIRE BUDGET. >> CSILLA, DID YOU NOT YOU WORKED WITH THE COUNTY TAX OFFICE ON THIS CALCULATION, DID YOU? >> YEAH, ABSOLUTELY. THIS IS A CERTIFIED CALCULATION BY THE GALVESTON COUNTY TAX ASSESSOR COLLECTOR, I'M SO SORRY. THESE ARE ITEMS THAT WE WORKED ON WITH CHERYL JOHNSON THROUGHOUT THE ENTIRE CALCULATION PROCESS. WE HAD, I WANT TO SAY THREE OR FOUR VERSIONS, AND WE WENT BACK AND FORTH ON A COUPLE OF ITEMS, BUT WE ARE IN AGREEMENT THAT THIS IS PER THE CALCULATION ACCURATE. >> WELL, I SPOKE WITH HER YESTERDAY AND SHE SEEMED TO IMPLY THAT THERE COULD BE SOME INCORRECT INFORMATION, SO I WOULD LIKE TO DISCUSS THIS FURTHER. >> I'M HAPPY TO REACH OUT TO HER AS WELL. I HAVE NOT HEARD ANYTHING FROM HER SUGGESTING THAT, BUT I'M HAPPY TO REACH OUT TO HER AND HAVE THAT DISCUSSION WITH HER. >> WE HAVE HER CHECK OUR NUMBERS. >> YEAH. IF YOU HAVE SPECIFICS, MARIE, GIVE THOSE TO CSILLA. DO YOU HAVE SPECIFICS ON WHERE THAT IS? >> MAYOR, MAY I ASK A QUESTION ON THIS DISCUSSION. WHAT YOU'RE FINDING, HOW IS THAT GOING TO OR YOU THINK IT'S GOING TO AFFECT MORE MONEY. >> MORE MONEY THAN IS REPORTED IN THIS, WHICH WOULD THEN REFLECT ON OUR ENTIRE BUDGET. >> HOW SOON? >> WELL, THE RESULT WOULD BE A LOWER TAX RATE. IF THE VALUES GO UP, THEN IT WOULD REQUIRE A RECALCULATION OF THE TAX RATE, AND IT WOULD SET THOSE GATEWAYS LOWER BECAUSE INCREASED VALUE INHERENTLY DEPRESSES THE TAX RATE. >> IT'S NOT LINEAR THAT YOU JUST GET MORE MONEY, IT CHANGES THE WHOLE THING. >> I REALIZE THAT. THAT'S WHY IT'S IMPORTANT TO DISCUSS IT AT THIS POINT. >> ANY OTHER QUESTIONS AT THIS POINT, COUNCIL? RIGHT AHEAD, CSILLA. >> ALONG THOSE LINES, I WOULD ADD THAT THE MAX TAX RATE THAT COUNCIL SET AT THE LAST COUNCIL MEETING WOULD NOT BE IMPACTED BY A RECALCULATION. SO SHOULD WE GET THAT INFORMATION FROM THE TAX ASSESSOR COLLECTOR'S OFFICE, I THINK WE COULD STILL MOVE FORWARD WITH NEW INFORMATION BASED ON THE NOTICES THAT WE'VE AGREED TO SO FAR. ONE OF THE THINGS WE WANTED TO TALK ABOUT WAS GENERAL FUND EXPENDITURES AND THE AREAS THAT WE COULD OR COULD NOT CUT OR WHAT IT IMPACTS AS FAR AS SERVICES ARE CONCERNED. YOU SAW A VERSION OF THIS GRAPH IN A PREVIOUS BUDGET WORKSHOP, BUT I WANTED TO CLARIFY AND PROVIDE A LITTLE MORE DETAIL ABOUT WHAT WE'RE DISCUSSING. [02:05:01] THESE ARE THE CATEGORIES OF EXPENDITURES IN THE GENERAL FUND. LESS THAN 7% OF IT, THE ENTIRE GENERAL FUND IS NOT TIED TO PEOPLE OR EXISTING CONTRACTS. IT'S IMPORTANT TO NOTE THAT. EC PERSONNEL SERVICES IS 69% OF THE BUDGET. THIS IS ALL JUST GENERAL FUND, THIS IS NOT THE OTHER FUNDS, NOT THE ENTERPRISE FUNDS. CONTRACTUAL SERVICES MAKES UP ABOUT 15% OF THE BUDGET. I LISTED SOME OF THE ITEMS IN THERE SO YOU UNDERSTAND THE TYPES OF THINGS INCLUDED. THIS ISN'T JUST CONTRACTS WITH VENDORS, THIS IS ISLAND TRANSIT. THIS IS THE DEPARTMENTAL ALLOCATION TO COMPUTERS AND TECHNOLOGY. THE CONTRIBUTION TO TECHNOLOGY SERVICES IS CONSIDERED A CONTRACTUAL SERVICE. THE TOTAL EMS CONTRIBUTION AFTER THE INCREASE OF THE $747,000 IS $1.6 MILLION, THAT IS A CONTRACTUAL SERVICE. THE CONTRIBUTIONS TO GARAGE AND FLEET MAINTENANCE WHICH IS ALSO CONSIDERED A CONTRACTUAL SERVICE AS WE CONTRIBUTE TO THAT INTERNAL SERVICE FUND IS $3.1 MILLION. THIS MAY SEEM LIKE A LOT, BUT THERE ARE 300 OF OUR VEHICLES ARE IN THE GENERAL FUND OR SOMEWHERE IN THAT RANGE. A LOT OF THAT COMES OUT OF THE POLICE DEPARTMENT, AS I'M SURE THEY'RE SAD WHEN THEY GET THAT GARAGE CONTRIBUTION ADDED TO THEIR BUDGET. BUT THAT'S A LARGE PORTION OF WHAT'S COMING OUT OF CONTRACTUAL SERVICES. ADDITIONALLY, OUR CONTRACT FOR THE JUSTICE CENTER WHERE THE POLICE DEPARTMENT IS HOUSED IS $803,000. THIS IS A SIGNIFICANT PORTION OF THIS CONTRACTUAL SERVICES PIECE. THIS ISN'T EXHAUSTIVE, OBVIOUSLY WE JUST TRIED TO GRAB SOME OF THE BIGGER ITEMS. UNDER YOUR OPERATING TRANSFERS, WHICH IS 9% OF YOUR GENERAL FUND. THE TWO BIG ITEMS ARE $6.6 MILLION FOR YOUR INFRASTRUCTURE, DEBT SERVICE FUND AT $950,000 TO THE SEPARATION FUND THAT'S ALMOST THE ENTIRE PIECE. WHAT WE'RE LEFT WITH WHEN WE TALK ABOUT WHERE DO WE DECREASE THE BUDGET? IT'S THE 7% HERE AT THE BOTTOM, AND EVEN THIS IS SOMEWHAT RIGID. CAPITAL OUTLAY IS ESSENTIALLY THE MILLION-DOLLAR VEHICLE CONTRIBUTION THAT THE GENERAL FUND MAKES EVERY YEAR. I WANT TO SAY THIS YEAR SOMEWHERE BETWEEN HALF AND A THIRD IS RELATED TO POLICE DEPARTMENT. BUT THIS IS AN AREA THAT IN THEORY, COUNCIL OR MANAGEMENT COULD CUT. BUT ESSENTIALLY, IT'S A KICKING THE CAN ITEM WHERE, WELL, WE DON'T REPLACE VEHICLES THIS YEAR, WE'LL STILL HAVE TO DO IT NEXT YEAR, SO THIS COST WILL EVENTUALLY COME BACK IN YOUR BUDGET AND JUST MAKES MORE SENSE TO MAINTAIN IT YEAR-OVER-YEAR. SPECIAL EVENTS THIS INCLUDES THE CONTRIBUTION TO GALVESTON TECH COUNTY APPRAISAL DISTRICT FOR THEIR ANNUAL APPRAISALS. THERE'S VARIOUS ITEMS IN THERE THAT ARE ALSO LIMITED IN OUR ABILITY TO DECREASE ON THEM. OVERALL, I WANTED TO GIVE COUNCIL AN IDEA OF WHERE THESE FUNDS ARE GOING TO BECAUSE I THINK IT'S REALLY IMPORTANT TO UNDERSTAND. AS WE'VE DISCUSSED, 50% OF YOUR REVENUE IN THE GENERAL FUND IS PROPERTY TAX. PERSONNEL SERVICES IS MORE THAN WHAT PROPERTY TAXES ARE, AND AS WE'VE DISCUSSED, PUBLIC SAFETY IS ALSO IN THE AREA OF 69, 70% OF YOUR BUDGET. SO THERE AGAIN, PUBLIC SAFETY IS WHAT YOUR PROPERTY TAXES ARE BEING USED FOR. BUT I JUST WANTED TO MAKE SURE COUNCIL UNDERSTOOD THAT MOST OF THESE ITEMS REALLY ARE NOT NEGOTIABLE ITEMS. IN FACT, IF TOO MUCH OF IT IS CUT, ULTIMATELY, YOU WILL IMPACT SERVICES, OR IT WILL REQUIRE FEWER EMPLOYEES, YOU WILL HAVE TO CUT POSITIONS. ARE THERE ANY ADDITIONAL QUESTIONS ON THIS PIECE? >> WE DO. GO AHEAD, MARIE. >> I HAVE TWO QUESTIONS. ONE, WELL, I GUESS, ON THE SEPARATION FUND IS SIGNIFICANTLY HIGHER THAN THE PREVIOUS CONTRACT. I MEAN, CONTRACTUAL YEAR, THE LAST BUDGET. >> WE ADDED $200,000 IN THIS FISCAL YEAR BECAUSE WE HAVE A LARGE NUMBER OF EMPLOYEES THAT ARE ELIGIBLE TO RETIRE AND THEY ARE LONG-TIME GALVESTON EMPLOYEES. WHAT THAT MEANS IS THEIR SEPARATION CHECKS OR THEIR ACCRUALS ON THE BOOKS ARE HIGHER THAN SOMEBODY WHO'S SEPARATING AFTER TWO OR THREE YEARS OF SERVICE. IF YOU SERVED GALVESTON FOR 30 YEARS, THEN YOUR VACATION ACCRUALS OR THAT THING ARE MUCH HIGHER. ESSENTIALLY WHAT WE'RE DOING IS WE'RE PUTTING MONEY ASIDE SO THAT WHEN THESE EMPLOYEES WHO ARE IN THEIR, LET'S SAY, [02:10:02] MID 50S TO MID 60S ARE VERY CLOSE TO THAT RETIREMENT AGE, WE HAVE ENOUGH FUNDS SET ASIDE TO HONOR THOSE OBLIGATIONS TO THOSE EMPLOYEES. >> IF THESE OBLIGATIONS ARE SPELLED OUT IN THE CONTRACTUAL AGREEMENTS WITH YOUR POLICE AND FIRE BECAUSE THEIR ACCRUALS ARE MUCH HIGHER THAN OURS ARE. >> WE'RE TALKING ABOUT I GUESS, BECAUSE IN CIVILIAN, WE DON'T ALLOW CARRY FORWARD LIKE WE USED TO. >> POLICE AND FIRE HAVE HIGHER ACCRUALS BECAUSE OF THEIR SCHEDULES AND THEIR WORK HOURS AND EVERYTHING ELSE. THEY COUNT THIS AS ALL PART OF THEIR BENEFIT PACKAGE THAT THEY NEGOTIATED. >> ALEX, GO AHEAD. >> SORRY. YOU HAD SAID THAT PUBLIC SAFETY WAS 68% OF OUR BUDGET? >> I BELIEVE RIGHT AROUND THERE. I DIDN'T INCLUDE THAT SLIDE, I ONLY INCLUDED THE EXPENDITURE CATEGORY SLIDE. BUT IN THAT RANGE, YES. WELL, 60%. MAYBE YOU WERE REFERRING TO PERSON. >> IT ALSO DEPENDS ON HOW MUCH REVENUE YOU HAVE COMING IN AND THAT I THINK OUR BUDGET BOOK IS BASED ON THE HIGHER TAX TOTAL. IF YOU KEEP AT THE LOWER RATE IT BECOME A BIGGER PERCENTAGE THAN THAT. >> IT INCLUDES ALSO IT MAY BE VARIANCE THERE ON CAPITAL EXPENDITURES BEING PUT INTO THAT, THAT IS FOR PUBLIC SAFETY. THAT'S WHAT'S PROBABLY DRIVING THAT UP. >> IT COULD JUST BE MY MEMORY'S IMPACTING TODAY. >> I CAN RELATE TO THAT HAVING ISSUES WITH MY SINUSES. >> MAYOR, I HAVE A QUESTION? >> YES, SIR. >> UNDER CONTRACTUAL SERVICES, EMS, I NOTED THAT IT WENT UP BY $747,000 TO A TOTAL OF 1.6 MILLION. I MEAN, THAT'S AN ENORMOUS INCREASE THAT WE HADN'T SEEN IN PREVIOUS YEARS. >> CORRECT. >> WHY? >> WELL, I CAN GIVE YOU A COUPLE OF REASONS FOR GETTING TO. ONE, WE GREATLY INCREASED OUR FIREFIGHTERS AND PARAMEDICS PAY. THEY SHARE BUILDINGS, THEY TALK, THAT'S PART OF WHAT THEY HAD TO DO. MOST OF THIS IS WAGES FROM THE HEALTH DISTRICT IS WHAT THEY'RE TELLING US IS WHAT DROVE THIS. THEY WERE HAVING A REAL HARD TIME MAINTAINING AND KEEPING PARAMEDICS ON THE BUSES, ON THE AMBULANCES. THIS PRIMARILY WAS THAT. THERE'S ALSO SOME CAPITAL IN HERE, BUT LITTLE CAPITAL FOR AMBULANCES. SO 100% OF THIS IS PERSONNEL. >> BUT FIRE IS SEPARATE FROM EMS UNDERNEATH YOUR EXPENDITURES FOR PUBLIC SAFETY. BUT YOU SAID SOME OF THAT MONEY? [OVERLAPPING] >> EMS STATION AT THE FIRE STATION. >> THEY SHARE BUILDINGS. WHEN WE GO UP ON OUR PARAMEDICS, THE MARKET FOR PARAMEDICS CHANGES. >> I GOT IT. THIS IS A CHANGE IN SALARY FOR PARAMEDICS. >> ALMOST ENTIRELY. >> BUT BRIAN WHILE WE'RE ON THE TOPIC, WOULD YOU EDUCATE COUNCIL ON THE CHANGE OF OUR RELATIONSHIP WITH EMS THIS COMING YEAR COMPARED TO THE WAY IT'S BEEN IN THE PAST? >> I MEAN, THE RELATIONSHIP IS VIRTUALLY THE SAME. IT'S JUST THAT HISTORICALLY IN THE PAST, EMS IS FUNDED BY GENERAL FUND CONTRIBUTIONS AND THAT DONATION FEE THAT'S ON YOUR WATER BILLS. THAT HAS REMAINED FAIRLY STEADY, ACTUALLY MAY HAVE DROPPED A LITTLE BIT IN THE PAST, BUT WE'VE GOT IT RELATIVELY STABLE. THE BIGGEST THING IS IS EMS FOR EVER HAS HELD THE LINE ON THEIR SALARIES, AND THEY WERE JUST FEELING THE BLOW. THEY WERE GETTING EATEN UP WITH OVERTIME COSTS AND THINGS. WE HAVE A LITTLE BIT OF FUND BALANCE WITH THEM. THAT'S WHAT THEY'RE USING TO PURCHASE AMBULANCES RIGHT NOW TO KEEP OUR FLEET NEW, BUT AFTER THIS YEAR, I BELIEVE WE WON'T HAVE MUCH OF A FUND BALANCE WITH EMS ANYMORE. OF COURSE, THEY HOLD THAT FUND BALANCE, WE DON'T. >> DO YOU SEE THIS BEING A CONTINUAL OBLIGATION FOR EXAMPLE? >> I THINK AS LONG AS YOU CONTINUE. >> YOUR PAY OF YOUR FIREFIGHTERS AND PARAMEDICS, IT'S GOING TO CONTINUE TO BE A PAY OBLIGATION TO THE COUNTY AS WELL. >> IT'S NOT JUST A ONE TIME HIT. >> IT IS NOT A ONE TIME HIT, WE'VE BEEN TOLD THAT BY THE COUNTY. >> VERY GOOD. HOW MUCH. >> ON PROJECTIONS. >> SORRY. FOR THE GARAGE AND FLEET MAINTENANCE, IS THAT JUST THE CONTRACTUAL FOR THE MAINTENANCE OF THE VEHICLES OR THAT DOES ANY OF THAT GO TOWARDS. >> THAT'S FUEL. >> I THINK CSILLA HAD MENTIONED BUYING NEW VEHICLES. DOES ANY PART OF THAT GO INTO THAT, SO THAT'S JUST ALL MAINTENANCE. >> THAT'S ALL MAINTENANCE AND FUEL. >> THAT'S IN THE PERSONNEL SERVICES. THAT DOESN'T INCLUDE ANY PERSONNEL. >> IT DOES INCLUDE GARAGE PERSONNEL. >> WELL, THIS IS THE TRANSFER TO THERE AND THE GARAGE BUDGET INCLUDES PERSONNEL AND THOSE ARE THE MECHANICS? >> CORRECT. >> YES, SIR. >> BECAUSE GARAGE BUDGET IS LIKE 5.9. >> CORRECT. YEAH, THAT'S RIGHT. THIS NUMBER HERE IS JUST THE GENERAL FUND CONTRIBUTION TO THE GARAGE. >> JUST THE GENERAL FUND CONTRIBUTION TO DO THE NUTS AND BOLTS. [02:15:01] >> THAT'S CORRECT. >> THE PERSONNEL IS IN THE PERSONNEL, SIR. >> THAT'S CORRECT. THAT'S THE OPERATIONS OF THE GARAGE, WHICH INCLUDES PERSONNEL. >> GO RIGHT AHEAD, CSILLA. >> ONE OF THE REQUESTS THAT WE HAD AT THE LAST COUNCIL MEETING WAS TO GIVE YOU A COMPARISON ON THE PROPOSED RATES THAT COUNCIL WILL BE SEEING AT TONIGHT'S COUNCIL MEETING AND QUESTIONS WERE ASKED EARLIER IN THE WORKSHOP AS WELL. BUT THE RATE INCREASES BOTH ON THE WASTE WATER SIDE AND THE SANITATION SIDE, AND WHAT THAT DOES FOR BOTH OF THESE FUNDS. THESE ARE ROUGH NUMBERS BASED ON THE REPORTS THAT COUNCIL RECEIVED AT THE LAST COUNCIL PRESENTATION FOR BOTH OF THE CONSULTANTS RELATED TO THESE TWO RECOMMENDATIONS. AS YOU'LL SEE, FUND BALANCE OBVIOUSLY STAYS THE SAME. YOU'LL SEE THE REVENUE INCREASE. THE PROPOSED BUDGET THAT YOU RECEIVED HAD REVENUE AT 45.7 MILLION, THAT WAS THE PROJECTED REVENUE IN THE COMBINED UTILITY SYSTEM. WITH THE NEW RATES, WE'RE PROJECTING IT WOULD BE AROUND 50 MILLION. IN THE SANITATION FUND, REVENUE FOR THE PROPOSED BUDGET WAS PROJECTED AT 9.8 MILLION, AND WITH THE NEW RATES, WE'RE PROJECTING IT WOULD BE ABOUT 10.9 MILLION. EXPENDITURES GO UP SLIGHTLY WITH BOTH OF THESE INCREASES AS WELL, BUT NOT SIGNIFICANTLY BECAUSE THEY'RE UNTESTED REVENUE. WE HAVE ASKED BOTH OF THESE ENTERPRISE FUNDS TO LIMIT THOSE INCREASES AS WE SEE HOW THE NEW RATES PLAY OUT. ULTIMATELY, WHAT YOU'LL SEE THE ENDING FUND BALANCE ON THE COMBINED UTILITY GOES FROM 11.4 MILLION ENDING FUND BALANCE TO 15.6 ENDING FUND BALANCE, AND REALLY THE SANITATION FUND, WE SEE A SIGNIFICANT INCREASE THAT IS MUCH NEEDED FROM THE 790,000 TO THE 1.9 MILLION. YOU'LL SEE THE NUMBER OF DAYS REFLECTED BELOW THAT. RIGHT NOW, THE COMBINED UTILITY IS PROJECTED TO BE UNDER 90 DAYS AND IT'LL GET US RIGHT TO 120 DAY MARK. THE SANITATION FUND IN THE PROPOSED BUDGET YOU RECEIVED IS RIGHT AROUND 28 DAYS, WHICH IS NOT EVEN A MONTH, ESPECIALLY IN LIGHT OF THE FACT THAT A LOT OF OUR EXPENSES, AS BRIAN ALLUDED TO WITH BILL ARE IN THAT SANITATION FUND. THE PROPOSED BUDGET YOU RECEIVED DOES NOT INCLUDE ANY OF THE BERYL RELATED COSTS. ONE OF THE THINGS YOU'LL NOTE ON ALL OF THOSE AGENDA ITEMS THAT ARE BEING RATIFIED BOTH AT THE LAST COUNCIL MEETING AT THIS COUNCIL MEETING, AND THERE WILL BE UNDOUBTEDLY FUTURE COUNCIL MEETINGS. WE KNOW THAT THIS CITY IS ABSORBING THESE COSTS AT THE MOMENT, AND THEY WILL ABSOLUTELY BE SUBMITTED FOR REIMBURSEMENT, BUT WE DON'T HAVE A TIMELINE ON THAT. SPECIFICALLY IN THE SANITATION FUND THIS PROPOSED BUDGET FUND BALANCE OF $790,000 MAY ACTUALLY BE CLOSER TO ZERO AFTER BERYL. I DON'T KNOW, I HAVEN'T LOOKED AT IT THAT CLOSELY, BUT SO THE RATE INCREASE IN THE SANITATION FUND IS GOING TO BE SIGNIFICANT, I THINK FOR STABILIZING THIS FUND AND ENSURING THAT IT'S ABLE TO PROVIDE THE SERVICES THAT THE CITIZENS EXPECT AT THE RATES THAT ARE IN PLACE. ANY QUESTIONS ON THIS COMPARISON? >> THE DAYS OF FUND BALANCE, I THINK WE TALKED ABOUT THIS A LITTLE EARLIER. THIS IS A DEDICATED ENTERPRISE FUND RESERVE? >> CORRECT. >>WE'RE NOT HITTING OUT ON SANITATION, BUT WE ARE ON UTILITIES? >> YES. >> WE ALSO TALKED EARLIER ABOUT WHEN WE WERE TALKING ABOUT THE TOTAL IMPACT OF BARREL REPAIRS ON EQUIPMENT, SO ON AND SO FORTH, WAS LIKE $80 MILLION. >> IT'S ABOUT $80 MILLION SO FAR IN DAMAGE ASSESSMENTS, AND THAT DOESN'T INCLUDE ANY OF THE LABOR COSTS OR ANY OF THE SERVICE COSTS, IT'S GOING TO BE DOUBLE DIGIT MILLIONS. >> DOUBLE DIGIT MILLIONS AND THAT'S NOT REFLECTED HERE. >> NO, IT'S NOT. >> HOW ARE WE PAYING FOR THAT NUMBER? >> WE'RE PAYING FOR IT OUT OF THESE RESERVES RIGHT NOW AND GENERAL FUND. >> GO AHEAD, MARIE. >> YOU WEREN'T FINISHED, BOB. >> I'M DONE. THANK YOU. >> DON'T WE ALSO CARRY CREDIT LINE FOR THE PURPOSE OF FRONTING MONEY THAT'LL BE REIMBURSED TO US? >> YEAH, WE DO. I DON'T THINK WE'VE TRIGGERED ANYTHING THAT WOULD TRIGGER THAT LOAN YET. >> BUT WE KEEP A RESERVE. YOU'RE SAYING YOU TRY TO KEEP IT AT 120 DAYS IN THE SPECIAL REVENUE FUNDS, WHICH THE BURDEN SITS ON OUR CITIZENS. >> THE BURDEN IS GOING TO SIT ON TOO WHEN YOU ACTIVATE THAT LOAN, TRUST ME. >> WELL, I UNDERSTAND THAT. BUT WE WILL BE REIMBURSED FOR THAT. I DON'T KNOW, TO ME, A 90-DAY RESERVE IN THE ENTERPRISE FUNDS MIGHT MAKE MORE SENSE THAN 120 IF IT KEEPS US [OVERLAPPING]. >> I WOULD HAVE AGREED WITH YOU PRIOR TO BERYL. [02:20:01] BUT GIVEN THE FACT THAT I HAD TO RUN FUEL TRUCKS 24 HOURS A DAY TO KEEP THE LIFT STATIONS GOING, I HAD TO RUN PUMP TRUCKS 24 HOURS A DAY TO KEEP LIFT STATIONS GOING. I THINK IN A PERFECT WORLD WITH A STORM LIKE BERYL, IF CENTERPOINT HAD GOT THE POWER BACK ON IN TWO DAYS, YEAH, I THINK WE'D HAVE BEEN FINE WITH THAT. BUT I THINK GIVEN THE SCENARIO THAT WE OPERATED IN, I'D ARGUE IF 120 DAYS IS ENOUGH. >> THE REIMBURSEMENT TOO, BRIAN. THIS IS NOT A REIMBURSEMENT THAT COMES IN IN 60 DAYS. WOULD YOU GO OVER THAT? >> THAT'S CORRECT, AND IT HAS TO GO THROUGH THE STATE AND ALL THE [OVERLAPPING]. >> GIVE US SOME HISTORY ON HOW THAT REIMBURSEMENT. >> WELL, WE'RE STILL GETTING REIMBURSEMENTS FROM IPE. >> WE HAVE PROJECTS THAT WE'RE STILL DOING WITH IPE FUNDS. >> JUST REMEMBER, YOU DO GET EXPEDITED REFUNDS FROM FIMA. THOSE ARE NOT GUARANTEED FUNDS. THEY COME BACK AND CLAW THEM BACK AFTER AUDIT AND THINGS LIKE THAT. IT'S NOT 100% CLEAN. YOU SPEND IT, YOU GET IT. I WOULD SUSPECT YOU WILL PROBABLY RECOGNIZE SOME OF THIS MONEY IN FY25, BUT I SUSPECT SOME OF THESE PWS WON'T COME BACK UNTIL EARLY FY26. >> MAYOR, I THINK THAT 120 A DAY RESERVE IS APPROPRIATE ALSO IN THE LIGHT OF HURRICANES COMING MUCH SOONER. RIGHT ON TOP OF OUR BIGGEST TOURIST INCOME DAYS, SO WE NEED TO PREPARE FOR THAT. >> YEAH. BERYL'S TIMING WAS HORRIBLE. >> ESPECIALLY, 18 DAYS AFTER ALBERTA THAT HAD ALREADY SO GOOD RUINS, BOB. >> IN THE EIGHT DAYS OF RAIN AFTERWARDS. THAT ALSO COMPLICATED OUR PUMPING BECAUSE WITH IN, THINGS THAT ARE JUST NATURAL IN OUR SYSTEM RH, THAT JUST REALLY CONFLATED THE ISSUES THAT WE WERE HAVING WITH OUR LIFTS AND EVERYTHING ELSE AS A RESULT OF BERYL. IT WAS JUST A PERFECT STORM OF BAD STUFF. >> ANY FURTHER QUESTIONS? CSILLA, GO RIGHT AHEAD. >> ONE OF THE ITEMS THAT WE WANTED TO GIVE COUNCIL SOME INSIGHT INTO IS OUR FUTURE CONCERNS. MOST SPECIFICALLY, WHAT KINDS OF CONTRACTUAL OBLIGATIONS OR OBLIGATIONS WE MIGHT HAVE IN FUTURE YEARS. JUST VERY PAIRING IT DOWN TO ASSUMING EVERYTHING STAYS THE SAME YEAR EVERY YEAR. THE LAST FIVE YEARS, THE POLICE AND FIRE CBAS HAVE HAD AN AVERAGE 5% ANNUAL INCREASE. IT'S AN APPROPRIATE TREND TO PROJECT FORWARD. WE DON'T KNOW WHAT WILL BE NEGOTIATED, AND CERTAINLY IT COULD BE LESS, BUT THE LAST YEARS HAS AVERAGED 5% PER YEAR. HEALTH INSURANCE IS EXPECTED TO CONTINUE TO RISE AT ABOUT 10% PER YEAR. EVEN THOUGH A LOT OF ORGANIZATIONS OFFSET THOSE INCREASES WITH ADDITIONAL CONTRIBUTIONS FROM THE EMPLOYEES, GALVESTON IS VERY MUCH LIMITED IN THIS WAY BECAUSE OUR CBAS CAP THE PER EMPLOYEE CONTRIBUTIONS FOR EMPLOYEE INSURANCE. THIS YEAR, WE ARE PROPOSING THAT WE'RE GOING TO INCREASE THAT TO THE CAP, WHICH IS $75 INSTEAD OF THE CURRENT 57. BUT THAT WILL NOT BE A LEVER THAT WE'RE GOING TO BE ABLE TO PULL IN FUTURE YEARS BECAUSE WE WILL BE AT THE MAX ALLOWED CONTRIBUTION AS NEGOTIATED IN THE CBAS. THESE 10% INCREASES IN FUTURE YEARS, IT WILL BE VERY DIFFICULT TO OFFSET THEM BY INCREASING EMPLOYEE CONTRIBUTIONS, IF NOT IMPOSSIBLE. JUST THESE TWO POTENTIAL INCREASES, WHICH ARE REASONABLE TO EXPECT IN YEARS '26, '27, AND '28, YOU'LL SEE THE TOTALS FROM 2.5 MILLION TO 2.8 MILLION, AND THIS IS JUST GENERAL FUND IMPACT. >> PLEASE CALM DOWN, CSILLA. IT'S NOT 2.5 THAT GOES UP TO 2.7. IT'S 2.5, THEN THERE'S 2.7 ON TOP OF THE 2.5, AND THEN THERE'S 2.8 ON TOP OF THE 2.7 AND THE 2.5. >> CORRECT. >> BRIAN, ON THE CBA AGREEMENTS, OR THE CBAS THAT WE HAVE, FIRE COMES DUE WHEN? >> FIRE IS UP NEXT YEAR. >> THE POLICE? >> POLICE, WE HAVE ALREADY NEGOTIATED, AND THEY WILL GET THE RESULTS OF THE SURVEY BETWEEN TEXAS CITY AND LEAGUE CITY. >> HOW LONG WILL THIS HAPPEN, ANOTHER FOUR YEARS? >> THAT COMES UP IN MAY, AND THEN THERE'S TWO MORE YEARS ON THAT AGREEMENT. >> HOW DO WE ACCOUNT IN THE BUDGET FOR TALKING ABOUT POLICE? WE'RE SHY 20 RIGHT NOW. >> THAT WAS MINE. DAN WOULD PROBABLY HAVE THE ANSWER TO THAT. THE PENSION BOARD FOR ALL THE LAPSES IN EMPLOYMENT, THAT EXTRA GOES TOWARDS THE UNFUNDED LIABILITIES. >> IT'S FUNDED. WE FILL EVERY SLOT FOR PENSION PURPOSES. WE CONTRIBUTE TO THE PENSION PLAN AS IF THE POSITION WAS FILLED. >> WHAT HAPPENS TO THE SALARY AND SO FORTH? [02:25:02] >> IT'S THE PERIOD OF ELAPSE, BUT THEY SPEND MORE THAN THAT IN OVERTIME. >> YEAH. AGAIN, IT'S NOT LINEAR, BECAUSE IF YOUR SHORT 20 OFFICERS, WE'RE WORKING OVERTIME TO KEEP THE SHIFTS FULL. ACTUALLY, IT'S SOMETIMES COSTING YOU MORE. >> OVERTIME EXPENDITURES, MOVING FORWARD, HOW CAN WE CLASSIFY SOME OF THOSE AS HOT RELATED? >> SPECIAL EVENTS IS EASY. THAT'S ONE THAT'S A NO-BRAINER. THEN YOU LOOK AT, IF YOU CAN TRACK THE NATURE OF THE CALL, WHICH WHEN YOU ALL WERE TALKING ABOUT THE RMS SYSTEM EARLIER, UNDERSTANDING IT'S STILL THE MOTOROLA SYSTEM. THE SYSTEM IS THE SYSTEM. IT'S CHANGING TO A DIFFERENT VERSION OF THE SYSTEM, AND WE'RE GOING TO HAVE BETTER CONTROLS OVER THIS VERSION. I THINK BRIAN ALLUDED TO THE FACT THAT WE COULDN'T GET DATA IN A ONE WAY, IT MAY HAVE BEEN THE CHIEF, BECAUSE WE'D HAVE TO GO TO THE CONSORTIUM, THE CONSORTIUM WOULD HAVE TO AGREE TO IT AND THEN THEY'D HAVE TO RUN A REPORT. WE'RE GOING TO HAVE GREATER CONTROLS OVER THE SYSTEM GOING FORWARD, HOPEFULLY, WITH THE COUNTY THAN WE HAVE NOW. THAT'S WHERE YOU GET THE DATA, BUT I THINK IF YOU START ISOLATING THE SPECIAL EVENTS, YOU LOOK AT THINGS RELATED TO TOURISM AT THE SPECIFIC CALLS TO THE BEACH. >> THE EASY GRABS WOULD BE WHEN WE STAND UP A MOUNTED DETAIL FOR SAN LOUIS PASS, WHEN WE STAND UP MOUNTED DETAIL FOR SUNNY BEACH, WHEN WE STAND UP THOSE DETAILS, ABSOLUTELY, WE CAN GRAB THOSE, WE KNOW WHAT THOSE COST US. >> SEAWALL DETAIL, FOR EXAMPLE. >> WELL, WE'RE ALREADY PAYING FOR THE SEAWALL OUT OF YOUR TRICKLE DOWN MONEY, WHICH IS NOT PROJECTED IN HERE, BUT YOU'VE GOT EIGHT YEARS LEFT ON TRICKLE DOWN MONEY. WHEN THAT GOES AWAY, YOU'RE GOING TO HAVE TO PLUG THAT BACK INTO YOUR GENERAL FUND AS WELL, ALONG WITH YOUR TROLLEY OPERATIONS. >> WHAT IF IT'S A TRICKLE DOWN HOT, WHY DON'T WE PLUGGED UP THE HOT INTO IT? >> BECAUSE THERE'S NOT A LOT. THE PROBLEM IS, IS THAT I HAVE A VERY SMALL LIMITED AMOUNT OF HOT, AND IT HAS TO BE RECURRING. THESE ARE RECURRING EXPENSES THAT WE'RE SPENDING, SO YOU NEED RECURRING REVENUE. WHILE TRICKLE DOWN IS RECURRING RIGHT NOW, IT'S FIXING TO GO AWAY, AND PLUS YOU'VE GOT YOUR TRICKLE DOWN FAIRLY COMMITTED IN YOUR TROLLEY AND TOURIST ORIENTED TRANSPORTATION. WE'RE PAYING A FEW COPS OUT OF THERE, YOU WOULD HAVE TO GO OUT AND SNAG A PIECE OF YOUR RECURRING HOT REVENUE IN ORDER TO DO THAT. I'M NOT OPPOSED TO IT AT ALL, BUT YOU DON'T HAVE THAT REVENUE AT YOUR AVAIL RIGHT NOW. >> JUST A THOUGHT ON THAT, AND I THINK ALEX IS ON A GOOD PATH HERE. THAT POT HAS TO COME FROM SOMEWHERE ELSE. WE HAVE TO THEN SAY THAT IT COMES OUT OF WHEREVER. THIS HOT MONEY, THERE'S NOT EXTRA HOT SITTING OUT THERE. IT'S ALL COMMITTED. WE GOT TO GOT TO MAKE DECISIONS, IF WE DO THAT, TO TAKE THAT FROM SOME OTHER ENTITY THAT IS BEING FUNDED BY HOT. >> THE CONVENTION CENTER STILL NEEDS TO BE MAINTAINED. >> CORRECT. JUST KEEP IN MIND THAT WHEN THE CONVENTION CENTER BONDS PAYOFF IN EIGHT YEARS, I BELIEVE, THAT'S GONE, GUYS. THAT'S BEEN YOUR ONLY HOT, AND RIGHT NOW YOU'RE PAYING FOR THESE SEAWALL POLICE OFFICERS, YOU'RE PAYING FOR 4TH OF JULY FIREWORKS OUT OF THERE, YOU'RE PAYING FOR THE LION'S SHARE OF MARDI GRAS, AND YOU ARE ALSO PAYING FOR THESE OFFICERS OUT OF THERE, AND TRANSPORTATION, ALL THESE TROLLEYS THAT YOU SEE RUNNING AROUND THAT ARE REALLY SERVICING A LOT OF THE PEOPLE WHO WORK FOR THE HOTELS AND THINGS, BUT IN ADDITION, ALL THE TOURISTS, AND THE RAIL TROLLEYS AND EVERYTHING ELSE ARE ALL COMING OUT OF THAT. IN EIGHT YEARS, YOU GOT TO FIND A HOME. >> WE SHOULD DO IT BEFORE EIGHT YEARS. >> WELL, I'M NOT THE LITTLE BOY THAT'S CRYING WOLF. I AM REALLY TRYING TO TELL YOU GUYS THAT YOU ARE HEADING DOWN A VERY PRECARIOUS PATH. YOU GUYS CAN DO WHAT YOU WANT. THESE ARE POLICY ISSUES AND STAFF WILL BACK YOU UP 100% WHATEVER YOU DECIDE. BUT I'M TELLING YOU GIVEN THE GOVERNMENTAL CAPS THAT ARE PLACED ON YOU, BUT YOU HAVE TO LOOK AT YOUR FUTURE OBLIGATIONS. GUYS, EVERY PENNY THAT WE GAVE POLICE AND FIRE IS DESERVED. I'M TELLING YOU RIGHT NOW WITH WHAT THE CITY OF HOUSTON IS DOING, WE NEED TO LOOK VERY CLOSELY AT FUTURE YEAR COMPENSATION, ESPECIALLY FOR YOUR FIREFIGHTERS AND YOUR POLICE AS WELL. YOU'RE NOT GOING TO GET THERE, AND YOU HAVE TO DO THIS WITH RECURRING REVENUE. THERE'S ONLY SO MANY ONE-TIME RABBITS WE CAN PULL OUT OF OUR HAT TO DO THIS, AND YOU ARE DIGGING YOURSELF DEEPER AND DEEPER INTO THIS HOLE. I'M NOT SAYING IT'S GOING TO BE A PROBLEM WHILE I'M HERE OR ANY OF YOU ARE HERE, BUT YOU'RE SETTING THE CITIZENS UP FOR A PRETTY GOOD FALL IF WE DON'T START REALLY LOOKING AT THESE THINGS. >> I THINK THAT'S SOMETHING WE'LL BE ADDRESSING IN THE NEXT YEAR, AND I THINK EVERYONE IS ON THE SAME PAGE ON THAT. >> I HOPE SO. >> WELL, THIS YEAR, WE NEED TO ADDRESS. IT'S NOT NEXT YEAR OR THE UPCOMING FISCAL YEAR. THAT NEEDS TO BE ADDRESSED IN THIS BUDGET BECAUSE WE GOT TO START MOVING IN THAT DIRECTION TO MAINTAIN THE SOLVENCY OF THIS CITY IN THE FUTURE. >> YOU'RE 20 POLICE OFFICERS DOWN WITH WHAT I CONSIDER TO BE, AND WHAT EVEN YOUR GMPA WOULD PROBABLY AGREE, PRETTY GOOD PAY RIGHT NOW, AND YOU'RE STILL 20 POSITIONS DOWN BECAUSE PAY ISN'T EVERYTHING, [02:30:01] YOU'VE GOT A WAY DIFFERENT PENSION THAT WE'RE DEALING WITH, AND THAT'S FOR YOUR CIVILIAN EMPLOYEES AS WELL. RIGHT NOW, KEEP IN MIND, THEY'RE CONTEMPLATED TO GET NOTHING IN HERE, AND THEY HAVE PROBABLY ONE OF THE WORST PENSIONS IN THE STATE. WELL, I GUARANTEE WE HAVE THE WORST PENSION IN THE STATE BECAUSE WE'RE ONLY ONE OF SIX THAT AREN'T IN TMRS, AND OURS OF THOSE SIX IS AWFUL. GUYS, YOU'RE GOING TO RUN INTO SERIOUS PROBLEMS HERE COMING FORWARD, AND OF COURSE, I'M NOT SOUNDING THE ALARM ON THE CIVILIAN PENSION BECAUSE IT IS ALL BUT COMPLETELY FUNDED. BUT YOUR FIRE PENSION GUYS, THIS 1.5%, THEY'RE STILL PREDICTING A 7.5% RETURN, AND I'M NOT SPEAKING OUT OF SCHOOL. TRAVIS AND GREG UNDERSTAND THIS. WE'VE MET WITH THEM. BUT WHEN THEY FINALLY DO ADJUST THAT SUGGESTED OR ANTICIPATED RATE OF RETURN OF THAT PLAN, THAT 1.5% IS GOING TO LOOK LIKE NOTHING TO YOU GUYS. THAT'S GOING TO SHOOT WAY UP. YOU'VE GOT FUTURE OBLIGATIONS HERE THAT WE HAVE GOT TO START OWNING. >> WHAT WE NEED TO REMEMBER, AT LEAST IN MY MIND, WITH THE 3.5% TAX CAP COMING OUT OF THE STATE LEGISLATURE, WHATEVER WE SET THIS PROPERTY TAX RATE TODAY IS, THAT'S OUR BENCHMARK FOR THE FUTURE. EXCUSE ME. >> I AGREE, MAYOR. IT'S A NEW BAR. FOR NEXT YEAR, THAT'LL BE THE BAR. >> WE EXIT POLITICAL DISCUSSIONS AND WE EXIT EVEN, THEN IT JUST BECOMES MATH. IT JUST BECOMES MATH. >> BECAUSE IT'S BASED UPON OUR RATE THAT WE SET FOR THIS COMING FISCAL YEAR. IF IT'S A REAL LOW RATE, THEN THAT'S GOING TO MEAN THAT WE DON'T HAVE THE FLEXIBILITY THE NEXT TIME AROUND TO REALLY COVER THESE. >> YOU TRY TO MATCH YOUR MOST STABLE OPERATIONS WITH YOUR MOST STABLE REVENUE. YOU CAN'T OPERATE THIS CITY WITHOUT PUBLIC SAFETY, AND YOU CAN'T REALLY OPERATE IT WITHOUT SANITATION. WATER AND SEWER IS A SEPARATE ENTERPRISE, AND SO IS SANITATION TO A CERTAIN DEGREE, BUT THAT'S A CRITICAL. YOU TRY TO MATCH THIS UP THAT'S, IT OVERSIMPLIFIES IT, BUT YOUR BOTH STABLE REVENUE IS YOUR PROPERTY TAX. WE'RE USING ALL THAT. YOUR NEXT MOST STABLE REVENUE IS SALES TAX, AND I THINK WE'VE ALREADY SHOWN THIS YEAR, IT'S NOT ALL THAT STABLE, BUT IT'S MORE STABLE THAN OTHERS. THAT'S IT. ANYTHING BEYOND THOSE TWO THINGS, THE REVENUE BECOMES VERY WONKY, AND IT'S NOT AT ALL STABLE, AND YOU'RE COMMITTING STABLE NECESSITIES THAT YOUR CITIZENS REQUIRE AND YOU CAN'T FUND THEM OFF OF HOPES AND DREAMS. WE HAVE TO HAVE STABILITY MATCHING REVENUE TO DO THAT, AND THAT'S WHAT WE'RE TRYING TO DO. NOW, WE CAN HAVE DISCUSSIONS ALL DAY LONG ABOUT WE'RE A CITY OF 50,000 PEOPLE WITH 168 PERSON POLICE DEPARTMENT, AND THAT DOESN'T EXIST ANYWHERE ELSE. I'M NOT SAYING THAT'S WRONG. I'M JUST TELLING YOU, WHY DO YOU HAVE 168 MEMBER POLICE DEPARTMENT WHEN OTHER CITIES ARE SIZED DOWN? PART OF IT IS GEOGRAPHY. GOD BLESSED US WITH BEAUTIFUL 32 MILES OF BEACH, BUT NOT WITH EFFICIENT GEOGRAPHY. BUT THE OTHER THING IS, IS YOUR EIGHT MILLION VISITORS A YEAR THAT YOU'RE BRINGING IN THIS ISLAND, THAT WE'RE NOW HITTING OUR RESIDENTS AND ASKING THEM TO PAY FOR 168 POLICE OFFICERS. YOU CAN SAY SALES TAX IS PART OF IT. BUT UNLESS YOU'RE SEEING HUGE CONSTRUCTION IN HOTELS AND HUGE GROWTH IN SHORT TERM RENTALS, MOST OF YOUR GROWTH IN TOURISM IS COMING IN DAY TRIPPERS AND PEOPLE COMING ON AND OFF THOSE CRUISE SHIPS. >> I THINK YOU'RE PREACHING TO THE CHOIR. >> YEAH, I KNOW. BUT I BET THE CHOIR IS MORE THAN YOU GUYS. >> THAT'S WHY I THINK IT'S SO IMPORTANT THAT WE GET THAT PROPERTY TAX NUMBER RIGHT SO WE KNOW THE EXACT NUMBER [OVERLAPPING]. >> I AGREE, AND I THINK YOU'RE GOING TO FIND THAT UNLESS CHERYL MADE AN ERROR, THAT IT'S PRETTY RIGHT. >> ANY FURTHER COMMENTS AT THIS POINT? BOB. >> I JUST WANTED TO SAY, WHAT YOU JUST SAID RECOMMENDS HIGHLY INVOLVING THE LEGISLATURE TO EXPAND THE USE OF HOT INFRASTRUCTURE. HOPEFULLY, THEY'LL BE SUCCESSFUL DOING THAT. >> BOB, IT'S BEYOND INFRASTRUCTURE AT THIS POINT. WE HAVE BEEN VERY SUCCESSFUL, AT LEAST SINCE I'VE BEEN HERE, ON GETTING GRANTS, ON GETTING MONEY HERE FOR PROJECTS. I FEEL CONFIDENT GOING IN THE FUTURE, ESPECIALLY WITH OUR TEAM HERE, THAT WE'RE GOING TO BE SUCCESSFUL IN THAT. BUT THAT REQUIRES LOCAL MATCH, WHICH YOU NEED A LITTLE BIT OF. BUT THE OTHER THING IS, IS WHERE WE'RE REALLY STRUGGLING IS IN OPERATIONS. RIGHT NOW, THAT'S THE ONE AREA WHERE IT REALLY GETS TIGHT, AND THAT IT SPECIFICALLY SAYS, YOU CANNOT USE THIS FOR GENERAL GOVERNMENTAL OPERATIONS AND EXPENSES. THAT'S WHERE IT GETS VERY, VERY DIFFICULT. I ALWAYS FIND IT AMUSING. PEOPLE SAY, THIS IS THE GATEWAY THAT WE SHOW OUR VISITORS AND IT'S NOT BEING MOWED. WELL, THEN WHY AREN'T WE USING OUR TOURISM DOLLARS TO PAY FOR THE MOWING? ONE ARGUMENT DOESN'T MATCH THE OTHER. >> BUT WHAT I REALLY MEANT TO SAY WAS, I WAS TRYING TO MATCH THE IMPACT AND I WAS LOOPING INTO INFRASTRUCTURE OF THE POLICE AND FIRE AS RELATED TO TOURIST ACTIVITY IS PART OF OUR LOBBYING EFFORT AT THE STATE. [02:35:01] >> THAT'S VERY ASTUTE BECAUSE YOUR BIGGEST INFRASTRUCTURE THAT YOU MANAGE IS YOUR PERSONNEL. >> YEAH. >> THAT THE BIGGEST ASSET YOU HAVE. >> DAVID, YOU HAD A QUESTION. >> IF I LOOK AT YOUR MANAGEMENT PRIORITIES, WHICH YOU INCLUDED IN THE BUDGET, THE NUMBER ONE IS YOU SAY, IDENTIFY ALL SOURCES OF REVENUE THAT CAN REDUCE THE TAX BURDEN PLACED ON LOCAL TAXPAYERS BY THE TOURISM INDUSTRY. THAT'S GOING TO REQUIRE, I THINK, SOME REALLY HARD DISCUSSION, WE HEARD FROM COUNCIL MEMBER PORRETTO, COUNCIL MEMBER ROBB. BUT WE DO, LIKE YOU STATE IN HERE, WE HAVE GOT TO FIND ADDITIONAL REVENUE THAT HELPS TO OFFSET OUR FEES. NOW, I KNOW THIS IS NOT GOING TO HAPPEN BETWEEN NOW AND OCTOBER, AND I UNDERSTAND THAT. HOWEVER, MOVING FORWARD, IF WE HAVE ANY CHANCE OF TRYING TO ADDRESS MAINTAINING OR HELPING TO LOWER THE TAX RATE FOR THE BURDEN FOR OUR CITIZENS, WE'VE GOT TO BE ABLE TO IDENTIFY THOSE SOURCES OF REVENUE. >> LET ME ALSO CLARIFY, YOU DON'T WANT TO KILL THE GOOSE THAT LAYS THE GOLDEN EGG. WE CAN ATTEST NOW, BERYL WAS A TEST CASE FOR US THAT SHOULD LIVE ON FOR YEARS. WE WE LOST JULY, GUYS, AND YOU'RE FIXING TO FIND OUT WHAT BENEFIT TOURISM HAS TO GALVESTON. YOU'RE FIXING TO FIND OUT. I THINK WE'VE ALREADY FOUND OUT. >> I JUST WANTED TO MAKE SURE THAT EVERYBODY HEARD THAT, THAT FROM THE CITY MANAGEMENT PERSPECTIVE, THAT WAS THEIR NUMBER ONE PRIORITY. IT'S GOING TO TAKE ALL OF US HERE TO REALLY BE CREATIVE TO HELP GENERATE THAT ADDITIONAL REVENUE. >> THIS DISCUSSION, DAVID, WE HAD AT COUNCIL A NUMBER OF YEARS AGO, WE LISTED, IN PRIORITY, SEVEN OR EIGHT DIFFERENT SOURCES OF ALTERNATE REVENUE SOURCES. WE'VE BEEN WORKING OUR WAY THROUGH THAT. THAT'S WHY WE HAVE THE PORT INVOLVEMENT THAT WE DO RIGHT NOW. THAT MIGHT NEED TO BE LOOKED AT AND RESTRUCTURED, BUT I WOULD SAY THAT IT'S WORKING WELL FOR THE CITY AND FOR THE PORT. >> IN THE PARK BOARD, WE'VE GOT THINGS WORKING IN INTERLOCAL AGREEMENTS WITH THEM. BUT THE MATTER OF THE FACT IS WE'RE HEADING INTO AN AREA AND I DON'T THINK HEADING INTO IT, WE'RE INTO IT NOW THAT THERE'S GOING TO HAVE TO BE A LOT OF LITTLE MULTIPLE INVOLVEMENT HERE. THERE'S NOT ONE GIANT REVENUE SOURCE OUT THERE THAT WE CAN JUST GRAB A HOLD OF AND IT HANDLES OUR $2.2 MILLION DEFICIT. >> I UNDERSTAND. IT'S GOING TO BE A LITANY OF THINGS. >> VERY MUCH SO. CSILLA GO RIGHT AHEAD. >> IN THIS ORANGE LINE, I JUST WANTED TO BRING TO COUNSEL'S ATTENTION THAT THE PROPOSED BUDGET THAT WAS RECEIVED DID NOT INCLUDE ANY OF THE BERYL RELATED ACTIVITIES BECAUSE WE JUST DID NOT HAVE ENOUGH INFORMATION AT THE TIME. AS OF THIS WEEK, WE HAVE ABOUT $660,000 WORTH OF IMPACT. IT'S A LITTLE LESS THAN WHAT IS CURRENT. BUT ABOUT $660,000 WORTH OF IMPACT IN THE GENERAL FUND FROM BERYL. AS NOTED IN ALL OF THOSE AGENDA ITEMS THAT COUNSEL HAS ASKED TO RATIFY, THOSE ARE GOING TO PROBABLY COME BACK AS BUDGET AMENDMENTS AFTER THE END OF THE FOURTH QUARTER. WE'RE ANTICIPATING THAT $660,000 IS OVER TWO DAYS, SO THE PROJECTED URINE FUND BALANCE FOR FISCAL YEAR 24 IS PROJECTED TO BE AT LEAST TWO DAYS LOWER THAN YOUR PROPOSED BUDGET SHOWS IT AT AS A RESULT OF BERYL RELATED ACTIVITIES THAT ARE NOT INCLUDED IN THAT PROPOSED BUDGET. FINALLY, AS NOTED ON THE PREVIOUS SLIDE WITH THE SCENARIOS, AT THE 408850 TAX RATE, IF IT'S HELD STEADY YEAR OVER YEAR, THE DEFICIT CURRENTLY IS ABOUT 1.5 MILLION. I THINK THE DISCUSSION THAT'S IMPORTANT TO HAVE IS THAT WHILE WE CAN REEVALUATE SOME OF THE REVENUE STREAMS AND MAYBE EXPENDITURES THAT ARE CURRENTLY IN THE BUDGET, I THINK THE BUDGET THAT'S BEEN PRESENTED WAS A BUDGET PRESENTED IN GOOD FAITH REFLECTING OUR KNOWLEDGE OF TRENDS AND PROJECTIONS AND WHERE WE REALLY ANTICIPATE THINGS TO BE. IF ANY CHANGES WE MAKE DO NOT BEAR OUT, IT'S IMPORTANT TO NOTE THAT POTENTIALLY THE DEFICIT THAT COULD RESULT IF THOSE CHANGES DON'T BEAR OUT IS FIVE DAYS ON YOUR FUND BALANCE. JUST THOSE TWO ITEMS COMBINED WOULD EASILY DROP US IN FUND BALANCE BELOW 100 DAYS, CLOSER TO 97 DAYS AT THE END OF FISCAL YEAR 25. JUST UNDERSTANDING THAT THERE ARE OBVIOUSLY THINGS IN PLAY THAT COULD IMPACT WHAT WE'RE PROJECTING RIGHT NOW AT THE END OF FISCAL YEAR 25 TO BE 105 DAYS COULD EASILY DROP BACK TO 98 OR 97 DAYS BASED ON SOME OF THESE ITEMS. DOES ANYONE HAVE ANY ADDITIONAL QUESTIONS ON THAT? >> LET ME INTERJECT SOMETHING TOO. I DON'T WANT TO PAINT ALL DOOM AND GLOOM HERE. [02:40:02] YOU'VE GOT SOME BIG THINGS COMING. YOU GOT IFS AND BUTS WERE CANDY AND NUTS, WE'D ALL HAVE MERRY CHRISTMAS. BUT IF MARGARITA BILL DEVELOPS, IF SALA GETS GOING, IF TIARA GETS GOING OR WHATEVER I GET THE TWO OF THEM MIXED UP. WHATEVER I GET THE TWO OF MIXED UP? IF SOME OF THESE WESTERN DEVELOPMENTS HAPPEN, I THINK THEY'RE SLOWED A LITTLE BIT BECAUSE THE INTEREST IN INVESTMENT. IF AND WHEN THOSE HAPPEN, WE'RE GOING TO HAVE HELP, AND WE'RE GOING TO HAVE RELIEF HERE AND IT'S NOT GOING TO BE AS DIRE. RIGHT NOW, WE HAVE TO BE VERY CAUTIOUS THAT AND ONE THING I CAN ASSURE YOU IS NONE OF THOSE ARE GOING TO HAPPEN IN 2025 AND BE ON THE TAX ROLLS FOR THIS YEAR. >> JUST TO YOUR COMMENT THAT YOU SAID, BECAUSE YOU THINK PEOPLE ARE NOT AS INTERESTED IN INVESTMENT, TIARA IS FUNDED. >> GOOD. THAT'S GREAT. SORRY TIARA. I APOLOGIZE ABOUT THAT GETTING MIXED UP, BUT I KNOW THEY'RE SELLING, THEY HAVE A SALES OFFICE. >> SO LONG AS ISN'T ON THE BOOKS. >> I HAVE NO IDEA, BUT MARGARITAVILLE, I'VE SEEN THE CRANE OUT THERE. IT IT MOVES. >> IT START DOING IT. >> IT MOVES CRANE. >> SO LONG THEY REMOVED FAR FROM THAT. >> BUT YOU ALSO DON'T WANT TO GET YOURSELF INTO A GROWTH AT ALL COST POSITION EITHER BECAUSE THEN YOU END UP DEVELOPING PROPERTY THAT PROBABLY SHOULDN'T BE DEVELOPED. YOU END UP DISRUPTING WILDLIFE CORRIDORS AND WETLANDS AND EVERYTHING ELSE. YOU DON'T WANT TO GET YOURSELF IN THAT POSITION. >>NO. ARTIST BOAT JUST MADE A HUGE PURCHASE YESTERDAY OF THE ANCHOR BAY PROPERTY. >>THE ARTIST BOAT CONDOMINIUMS? DOMES. CARLA, NO. >> LET'S MOVE ON FROM THAT. ANY QUESTIONS AT THIS POINT AND WE'LL LET CSILLA [INAUDIBLE] FINISH UP HERE. >> CSILLA, GO RIGHT AHEAD. >> FINALLY, I THINK AS A REMINDER, WE HAVE A SPECIAL COUNCIL MEETING ON SEPTEMBER 12. CURRENTLY, THE BUDGET THAT YOU HAVE IN YOUR HANDS THAT YOU RECEIVED EARLIER IN AUGUST IS BASED ON THAT 428382 TAX RATE. IT WILL REQUIRE FOUR VOTES TO ADOPT THE BUDGET ON THE 12TH, BUT IT REQUIRES FIVE VOTES TO ADOPT THE TAX RATE ON SEPTEMBER 19. IDEALLY, WHAT WE NEED IS DIRECTION FROM COUNSEL ON WHAT TAX RATE YOUR PROPOSED BUDGET SHOULD BE SET AT THAT WE'RE BRINGING TO YOU ON SEPTEMBER 12, SO THAT WE ENSURE THAT WE'RE IN LINE WITH COUNCIL'S GOALS ARE. IN ORDER TO DO THAT, IF THIS IS NOT THE TAX RATE THAT COUNCIL WANTS TO PURSUE, THEN WE NEED TO ADJUST THE PROPOSED BUDGET ACCORDINGLY, AND SO WE NEED DIRECTION TO DO THAT. I THINK THAT'S ALL I HAVE. I'M HAPPY TO ANSWER ANY OTHER QUESTIONS. >> LET ME MAKE A COMMENT ON THAT, TOO. ONE OF THE PURPOSES OF BRINGING THIS FORWARD AT THIS POINT, COUNSEL, IS WE NEED TO GIVE TO BE RESPECTFUL OF STAFF'S TIME AND FOR OUR COMMUNITY AND OUR RESIDENTS OUT THERE, WE NEED TO MOVE, WE NEED TODAY TO START GIVING DIRECTION ON WHERE WE WANT TO HEAD WITH THIS TAX RATE. WE CAN'T WAIT UNTIL SEPTEMBER 12, AND DECIDE WE'RE GOING TO DO A TAX RATE OF X AMOUNT OF DOLLARS, AND IT REQUIRES A LOT OF DIFFERENT CHANGES AND CUTS AND THINGS LIKE THAT THAT THE STAFF DOESN'T HAVE TIME TO DO. >> WELL, WHEN I FOUND THE DEFICIENCY IN THIS NUMBER, I QUOTED CSILLA IMMEDIATELY, SO SHE WELL UNDERSTAND. >> UNDERSTAND. BUT WE NEED TO GIVE SOME DIRECTION HERE. IF COUNCIL SAYS THEY WANT TO MOVE TOWARDS A CERTAIN TAX RATE. I WANT TO GIVE COUNCIL THIS DIRECTION TOO. WELL, I WON'T GET INTO THAT RIGHT NOW. BUT I'M GOING TO OPEN THAT UP FOR DISCUSSION. LET'S WALK AROUND THE TABLE HERE AND GET SOME INPUT FROM OUR COUNCIL MEMBERS ON THIS. SHARON, DO YOU WANT TO LEAD US OFF ON THAT OR DO YOU? >> I CAN. >> I WAS JUST WONDERING AND I HAD TO STEP OUT A MINUTE TO CALL A ROOFER, BUT AND I'M SURE YOU GUYS DISCUSSED THIS BECAUSE I HEARD HOT TAX DOLLARS BEING DISCUSSED. I'M REALLY UNCLEAR ON HOT TAX DOLLARS, WHERE THEY'RE LOCATED. I HEAR THERE ARE MILLIONS OF DOLLARS OF THEM, WHERE ARE THEY? I HEARD THERE WITH THE PARK BOARD OR BUT IS IT POSSIBLE TO BE ABLE TO USE AND MAYBE YOU GUYS DISCUSSED THIS? ANY OF THAT FOR THE MARSHALLS. >> MARSHALLS IS SUCH A SMALL PART, BUT LET'S TALK ABOUT OUR HOT SOURCES. YOU HAVE RECURRING HOT THAT'S COLLECTED EVERY YEAR, AND PRETTY MUCH 100% OF THAT PRETTY MUCH GOES TO THE PARK BOARD FOR THEIR OPERATIONS. THERE'S A LITTLE LESS THAN $14 MILLION, I BELIEVE, BEING HELD BY THE CITY THAT IS CLASSIFIED AS HOT, BUT IT'S FUND BALANCE. [02:45:05] THAT'S NOT RECURRING REVENUE. THAT'S ONE TIME REVENUE. AT THIS POINT, THE MAJORITY OF THAT, IF NOT, MORE THAN THE MAJORITY OF IT, IS PLEDGED TO THE BEACH PATROL HEADQUARTERS AND WORK IN AND AROUND THE BEACH PATROL HEADQUARTERS AT STEWART BEACH. THE THIRD SOURCE OF HOT THAT THE CITY AND THIS IS THE ONLY TRUE SOURCE THE CITY 100% HAS ACCESS TO IS WHAT WE CALL TRICKLE DOWN OR WHICH IS THE CONVENTION CENTER SURPLUS FUND. THIS HAS BEEN, IT'S MATRICULATED UP A LITTLE BIT, NOT BECAUSE OF ANY OTHER REASON OTHER THAN THE FACT THAT THE DEBT IS BEING PAID DOWN ON THE CONVENTION CENTER. OF COURSE, WE ALL KNOW, THE FIRST THING YOU DO WHEN YOUR MORTGAGE IS PAID FOR IS YOU REMODEL YOUR HOUSE BECAUSE YOU'VE NEGLECTED IT BECAUSE YOU'VE CONVEYING YOUR MORTGAGE. WE'RE GETTING THERE. YOU'VE SEEN SCAFFOLDING UP ON THE CONVENTION CENTER. THERE'S GOING TO BE A LITTLE BIT OF MONEY SPENT THIS YEAR ON THAT AND I SUSPECT THAT IN THE NEXT SEVEN OR EIGHT YEARS THERE'S GOING TO BE ANOTHER PUSH FOR CAPITAL. EXPENDITURES, DANCE IT'S ON THAT BOARD ALONG WITH MEMBERS OF THE LANDRIS GROUP AND THE TOURIST ADMINISTRATOR. BUT THAT'S GOING TO THAT'S GOING AWAY. >> QUESTION, [INAUDIBLE]. DO WE DRIVE WHAT GETS REPAIRED OR DO THEY DRIVE? >> THAT MANDY'S REQUESTED OF THAT OPERATING BOARD AND THE BOARD VOTES ON IT, CORRECT? >> YEAH. >> YOU HAVE TALK ABOUT THEIR BUDGET? >> THE REPAIRS. >> REPAIRS AND IMPROVEMENTS TO THE COMMITTEE. >> THEY GO TO THE BOARD. >> BRING THEM FORWARD. IT COMES TO THE COMMITTEE, THE COMMITTEE DISCUSSES IT, BUT IT'S ALL DRIVEN BY THE BOND DOCUMENTS. THEY OPERATE AND CONTROL. >> IT'S A TIGHT TIGHT DOCUMENT. WE MIGHT GET TO IF WE GOT TO PICK COLORS AND BE MAROON, BUT WE DIDN'T GET TO PICK COLORS DECISION. >> THAT BOARD, DAN, YOU REPRESENT THE CITY ON THAT BOARD. PARK BOARD HAS A SEAT ON THAT BOARD.. >> BUT BOTH WROTE I DID TIME ON THAT BOARD, DAN DOES TIME ON IT BRIAN SHOULD KNOWN WELL. >> BUT THE DOCUMENT AS BRIAN SAID, IT IS SO DETAILED THAT IT DRIVES. >> LANDRY'S HASN'T GOTTEN TO BE AS SUCCESSFUL AS THEY ARE BECAUSE THEY DRAW UP POOR DOCUMENTS. I CAN ASSURE YOU THAT. >> A QUESTION FOR YOU LONG-TERM VIEW RIGHT NOW, THE CITY AND VENUE HOT FUNDS ARE 9%. YOU SAID IN EIGHT YEARS OR SO, THE DEBT GOES AWAY, THAT'S 2%, AND THEN ALSO THE BRIMER BILL. NO BRIMER BILL THAT STAYS. THAT STAYS. WHERE DOES THAT 2% DOES THE RATE REDUCE? DOES THE RATE STAY THE SAME? WHAT DO YOU DO? >> THE RATE DOESN'T NECESSARILY REDUCE. THE QUESTION BECOMES, HOW YOU RENEGOTIATE YOUR CONTRACT? >> THERE WE GO RIGHT. THANK YOU. >> THE OTHER THING ON THE HOT, SHARON, THAT HADN'T BEEN MENTIONED, SEVEN EIGHTHS OF THE PENNY STAYS WITH OF THE HOT, STAYS WITH THE CITY. SIX EIGHTHS OF THAT IS BY ORDINANCE GOES TO THE ARTS AND HISTORIC PRESERVATION BOARD, AND ONE EIGHTH OF THAT PENNY GOES TO HISTORIC PRESERVATION. THAT'S IN A SEPARATE ACCOUNT HERE AND COUNCIL PASSED A ORDINANCE RECENTLY, WELL, IT'S BEEN A LITTLE WHILE BACK, THAT CAN ONLY BE SPENT ON STRUCTURES OWNED BY THE. >> STRUCTURES OWNED BY THE CITY, AND THAT HAS BEEN A BIG RELIEF. THAT IS ONE OF THE FIRST STEPS WE TOOK TO TRY TO HELP RELIEVE SOME OF THE EXPENSE ON THE CITIZENS BECAUSE WE DO OPERATE A LOT OF HISTORIC STRUCTURES. WE'RE GETTING ANOTHER ONE BACK HERE AT THE END OF THE YEAR, WE'RE GETTING ART AND BRIAN BACK IN OUR OPERATIONS, AND SO THESE MONIES ARE GOING TO BE WELL PLACED INTO THIS. >> SCAFFOLDING ON THIS BUILDING? >> WE'RE STAYING HERE. >> THAT'S ALL. >> THE MAYOR OPENED HIS WINDOW DURING THE HURRICANES. THAT'S RIGHT. >> THAT THE FUND BALANCE 14 MILLION, THE NUMBERS YOU JUST MENTIONED? >> YES. >> NOTHING LEFT. >> BACK TO THE DISCUSSION EARLIER, I JUST WANT TO COUNCIL, I THINK YOU'RE AWARE. IF WE DECIDE THAT WE WANT TO FUND SOMETHING ELSE WITH HOT, WE'VE GOT TO TAKE IT FROM SOMETHING ELSE, SO THAT GETS INTO A POLITICAL DISCUSSION SOMETIMES THAT BECOMES INTERESTING. >> LET ME GIVE YOU AN EXAMPLE AND DAN KICK ME DON'T SAY HOW. BUT YOU'VE GOT $14 MILLION, AND WE'VE DEDICATED THAT TO A BEACH PATROL HEADQUARTERS AND SOME IMPROVEMENTS AROUND THERE. YOU CAN SPEND DOWN ON THAT FOR CERTAIN HOT RELATED ITEMS, BUT THAT'S NOT RECURRING REVENUE, THAT THAT MONEY IS GOING TO DECLINE. I WILL TELL YOU THAT THE CURRENT PARK BOARD ASK OF YOU IS FOR ALL OF THE CURRENT RECURRING REVENUE PLUS $3 MILLION OF YOUR FUND BALANCE. THAT'S NOT FREE AND CLEAR. NOW, IF YOU STARTED SPENDING DOWN, LET'S JUST SAY YOU STARTED TAKING $2 MILLION A YEAR FOR TRULY AUTHORIZED AND USEFUL EXPENDITURES AT THE CITY OR HAVE SEE IT, SAYING, LOOK WE'RE JUST GOING TO TAKE IT FROM THAT FUND BALANCE. THEY'D GIVE YOU SEVEN YEARS. IS THAT GOING TO BE A PROBLEM FOR ANYBODY SITTING HERE AT THIS TABLE? PROBABLY NOT. BUT IT GOING TO BE A PROBLEM. >> IT'S GOING TO BE A PROBLEM. >> BECAUSE IT'S NOT RECURRING. YOU REALLY DON'T WANT TO PLUG THESE HOLES WITH NON RECURRING REVENUE. [02:50:01] >> EXACTLY. I'M NOT GOING TO THAT. ALEX, ANY THOUGHTS? >> I'M SURE WE'VE ALL GOTTEN BOMBARDED WITH TEXTS AND CALLS ABOUT TAX RATE AND SEWER RATES. I UNDERSTAND THE BUDGETARY CONSTRAINTS. I'M NOT GOING TO SUPPORT A TAX RATE INCREASE. TWO YEARS AGO, COUNCIL DID FIND ALTERNATIVE REVENUES, AND I UNDERSTAND THE ARGUMENT OF NOT PLUGGING AWAY WITH REVENUE THAT'S NOT RECURRING. I THINK WITHOUT HAVING THE PORT BELIEVE OR THE PARK BOARD BELIEVE THAT WE'RE GOING TO BE STICKING OUR HANDS IN THEIR POCKETS, COMMUNICATING WITH THEM, WORKING WITH THEM TOGETHER IN A COLLABORATIVE EFFORT TO FIGURE OUT WHAT WE CAN DO, IMPOSING COSTS ON VISITORS, NOT ON THE ENTITIES THEMSELVES. I THINK THIS HAS BEEN MY ISSUE WITH COUNCIL. THIS IS ONE OF THE REASONS I RAN IS THE KICKING THE CAN DOWN THE ROAD OF FINDING THESE REVENUES HAS BEEN AN ISSUE. I THINK WE COULD MAYBE PUT A LINE IN THERE THAT COUNCIL NEEDS TO FIND THE REVENUES. PEOPLE ARE TELLING ME THAT THEY'RE GOING TO HAVE TO CUT OUT LUNCH IN THEIR LIVES TO COME UP WITH THE COSTS THAT WE'RE GOING TO BE IMPOSING I UNDERSTAND BOTH SIDE. LOOK. >> A COUPLE OF THINGS TO TO WHAT COUNCIL MEMBER PORRETTO IS SAYING. WE HAVE IN THE PAST, USED IN OUR BUDGET REVENUE TO BE IDENTIFIED. BUT WHAT HAPPENS IS A MATERIALITY THRESHOLD. WE'VE DONE THAT IN NUMBERS THAT WE'RE A COUPLE I DON'T WANT TO SAY THIS BECAUSE A COUPLE HUNDRED THOUSAND DOLLARS IS A LOT OF MONEY, BUT IN OUR BUDGET, A COUPLE HUNDRED THOUSAND DOLLARS, THAT COULD BE THE HEAD AND FLOW OF OUR SALES TAX ALONE. I FELT MORE COMFORTABLE WITH THAT. BUT WE'RE HITTING A MATERIALITY THRESHOLD HERE OF A COUPLE MILLION DOLLAR. YOU'RE NOT GOING TO GET THAT FLUCTUATION, WHICH IS A CONCERN THAT I HAVE. THEN THE OTHER THING I JUST WANT TO POINT OUT IS THAT I COMPLETELY UNDERSTAND EVERYBODY GETTING SQUEEZED BY MONEY, BUT I ALSO WANT TO MAKE THE CASE THAT THE CITY IS PROBABLY THE LARGEST CONSUMER IN THE CITY. I MEAN, WE DON'T PRODUCE ANY PRODUCTS, GUYS. WE BUY THE SAME PRODUCTS THAT EVERYBODY ELSE IS BUYING. IF GAS WENT UP FOR THEM, IMAGINE HOW MUCH IT WENT UP FOR US. IF ELECTRICITY WENT UP FOR THEM, IMAGINE HOW MUCH IT WENT UP FOR US. WE CAN ABSORB, AND WE HAVE ABSORBED. IF YOU GO BACK AND LOOK AT THE PAGE, I CALL IT BRIAN'S HEATHET, BUT CSILLA INCLUDED IT. IF YOU GO IN HERE AND LOOK AT THIS, WE'VE ABSORBED ALL THOSE INCREASES. WE'VE ABSORBED THAT. IF YOU LOOK AT OUR IF YOU GO TO THE NO NEW REVENUE RATE AND LOOK AT $78 MILLION AND LOOK AT OUR NORMAL GENERAL FUND EXPENDITURES IS $79 MILLION, WE'VE PRETTY MUCH ABSORBED EVERY INCREASE. WE'VE ABSORBED ALL THOSE INCREASES. WE'VE DONE OUR PART. BUT I CAN'T ABSORB IT. IF WE'RE GOING TO CONTINUE TO DO AND I'M NOT I WANT ANYBODY TO LEAVE YOU THINKING WE'RE NOT DOING THE RIGHT THING, BUT IF WE CONTINUE TO MAKE COMMITMENTS, IF WE WRITE CHECKS, WE'VE GOT TO COVER THE CHECKS, GUYS, AND WE WROTE CHECKS. YOU WROTE $3 MILLION WORTH OF CHECKS TO THESE TO THESE POLICE OFFICERS AND FIREMEN AND TO THEIR BENEFITS, AND WE'VE GOT TO FIND A WAY WE GOT TO PAY THESE CHECKS. YOU WROTE THE CHECKS. WE GOT TO PAY FOR THEM. >> VERY GOOD. MARIE, ANY THOUGHTS? >> WELL, FIRST, I THINK WE NEED TO GET THE NUMBERS RIGHT, AND I DON'T BELIEVE THEY ARE RIGHT. I'D SAY ABOUT 99% SURE THEY AREN'T RIGHT. I THINK WE NEED TO GET THAT. I'M ABOUT HALFWAY THROUGH THE BUDGET BOOK NOW. I DO THINK LIKE WHEN I COMPARE LAST YEAR'S BUDGET, AND I ASSUME WE'RE LOOKING WHEN IT'S LAST YEAR'S BUDGET. IT'S THE AMENDED BUDGET. >> CORRECT. >> IF WE LOOK AT A NUMBER OF TIMES IN THE PAST THREE YEARS, FOUR YEARS THAT WE CARRIED MONEY FORWARD BECAUSE IT'S NOT SPENT. I THINK THERE ARE SOME AREAS THAT COULD BE LOOKED AT. >> WE'RE LOOKING AT ALL THOSE, BUT I WILL TELL YOU YOU HAVE TO BE REAL CAREFUL DOING THAT BECAUSE THERE'S BIG LINE ITEMS THAT WENT WAY OVER OVERTIME AND POLICE AND OVERTIME AND FIRE. EVEN THOUGH WE UNDERSPENT IN. >> BUT AGAIN, WE GO BACK TO, I THINK WE NEED TO LOOK CREATIVELY AT THAT. >> [OVERLAPPING] I'M TALKING ABOUT JUST EXPENSES AND REVENUES. WHERE YOU GET YOUR REVENUES FROM MARIE, WE'RE 100% BEHIND YOU, WHATEVER YOU WANT TO DO THERE. BUT I CAN ONLY SHOW YOU WHAT'S ON THE BOOKS RIGHT NOW. YOU CAN'T SAY THAT WE UNDERSPENT, AND CSILLA, I'M GIVING HER, PROBABLY WHY SHE'S NOT HERE. I'VE MADE HER SICK BY GOING THROUGH THIS AND SAYING, LOOK, YOU'RE SAYING THIS MUCH AND WE SPENT $10 LESS THAN THIS IN THE LAST YEAR, I WANT TO SEE THIS NUMBER REFLECTED ACCURATELY. CHILE I'LL TELL YOU, I'VE BEEN DOING THAT. SAME THING WITH REVENUES. [02:55:02] IF WE PROJECTED $10,000 AND WE COLLECTED 10,200, I WANT THAT TO BE THE ESTIMATE THIS YEAR. OF COURSE, TO HER CREDIT, CHILE HAS MODELING AND THINGS, IT'S PROBABLY BETTER THAN WHAT BRIAN THINKS, BUT WE'RE TRYING TO DO THAT AND MOST OF THAT IS ALREADY INCORPORATED IN HERE, BUT WE'LL LOOK AT IT AGAIN. ONE HOT DAY, DON'T MAKE THE [OVERLAPPING] >> WE NEED TO LOOK AT EVERYTHING. [OVERLAPPING] I THINK WE NEED TO GET THE NUMBER. MY ANSWER. >> [OVERLAPPING] I'M GETTING DISAPPOINTED IF COUNT IF OUR TAX ASSESSOR MISSED AT [OVERLAPPING]. >> I DON'T KNOW THAT IT'S HER. >> YOU ASKED HER TO CHECK OUR NUMBERS, DID YOU? >> ABSOLUTELY. WHAT WE'RE USING IS THE CERTIFIED CALCULATION. >> THAT'S GOOD. >> WHEN WE ASKED HER AT WHAT POINT COULD, SARA IS SHOWING THEM THAT TIME. >> FROM THE PERIOD OF JULY 25TH, I BELIEVE, THROUGH AFTER THE AUGUST 8TH COUNCIL MEETING, WE WERE REQUESTED COMMUNICATION WITH THE TAXES OR COLLECTOR'S OFFICE. THERE WERE AT LEAST THREE, IF NOT FOUR RENDITIONS OF THE CALCULATION TO GET THE NUMBERS WHERE THEY WERE ACCURATE, AND WE WERE ALL IN AGREEMENT, AND THEN THEY CERTIFIED. >> ANECDOTALLY SPEAKING, WE DID NOT COLLECT WHAT WE PROJECTED LAST YEAR BECAUSE THE MAYOR GETS THESE, I DON'T KNOW WHY, BUT WE WERE GETTING NOTICES ALL THROUGH THE YEAR BECAUSE THESE TAX SUITS GO BEYOND WHEN WE ADOPT OUR BUDGET AND WE ENDED UP FALLING BELOW. >> UNDENIABLY IN THAT. >> [OVERLAPPING] I'M GLAD PEOPLE ARE DOING IT. >> I LEARNED YESTERDAY AND TALKING WITH THE TAX ASSESSOR IS. LAST YEAR, WE HAD A NUMBER OF PEOPLE GO TO COURT AND FIGHT AND WHEN. TYPICALLY, WHAT HAPPENS IS THEY REMAIN FLAT AND WHERE THEY ARE. THIS YEAR, THERE'S ONLY FIVE PEOPLE SO FAR THAT HAVE FILED LAWSUITS. NOT TO SAY THAT MORE WON'T COME AND BELIEVE ME, I AM THE BIGGEST SUPPORTER OF TAX PROTESTING AND HELP FRIENDS AND SO FORTH. BUT I STILL QUESTION THE NUMBERS. STILL, I WILL NOT SUPPORT A TAX INCREASE AS I NEVER HAVE. >> THAT'S FINE. >> [OVERLAPPING] I THINK WE NEED. >> [OVERLAPPING] WHATEVER COUNCIL COMES. >> TO LOOK AT. >> BUT YOU MADE $3 MILLION WORTH OF COMMITMENTS? >> BOTH. MINE'S, I GUESS, A MORE UNIVERSAL OR GLOBAL ASSESSMENT. TO ME, A LOT OF THIS IS JUST PERCEPTION OF THE COMMUNITY WE LOVE, AND YOU KNOW, THE PERCEPTION IS THAT WE LOOK AT HOT TAX AND AS CITIZENS, WE SEE THE AMOUNT OF MONEY THAT THAT INDUSTRY AND THAT SECTOR IS BRINGING IN. THEN WE LOOK OVER AT OUR PORT AS CITIZENS, AND WE SEE THAT, I GUESS, PRETTY SOON, WE'RE GOING TO HAVE ABOUT 1.7 MILLION CREWS PASSENGERS JUST THIS YEAR. WE SEE THE SUCCESS THAT WE'RE HAVING THERE. JUST A SIMPLE PERCEPTION IS TO LOOK AT ALL OF THOSE MEANS OF INCOME THAT THAT IS PRODUCING FOR OUR ISLAND, BUT YET IT'S THE CITIZENS THAT ARE BEING SQUEEZED THE MOST. THAT PERCEPTION IS REALLY HARD TO OVERCOME. I UNDERSTAND THE CONSTRAINTS THAT WE THROW LEGISLATION, LAW, POLICY, WHATEVER IT'S DEFINED AS THROUGH HOT TAX THAT'S AVAILABLE TO US. THIS IS AN ASIDE, BUT I WAS AT DINNER, NOT A FORMAL DINNER, NOT A MEAT-UP DINNER, BUT I WAS AT DINNER AND JUST HAPPENED TO BE SITTING BESIDE ONE OF THE HIGHER-UPS AT ONE OF THE CRUISE INDUSTRIES THAT JUST HAPPENED TO BE IN TOWN. I OVERHEARD HIM TALKING AND INTRODUCED MYSELF. HE GAVE ME QUITE A BIT OF TIME, I JUST COMPARING, WHAT WE ARE AS A PORT AND WHAT THE OUTLOOK IS, WHICH IS INCREDIBLE FOR PORT OF GALVESTON, COMPARED TO A LOT OF THE OTHER PORTS OF, I GUESS, PORTS THAT THEY LEAVE FROM, WHAT IS THAT CALLED? >> EMBARKATION OR DEBARKATION? >> THAT WORK. WHEN WE ARE AT THIS POINT IN TIME, THE NUMBER 4. AS FAR AS WE'RE NUMBER 4 IN THE TOP 10 OF PORTS OF EMBARKATION. THERE YOU GO. I JUST DID AS YOU MENTIONED EARLIER, BRIAN, JUST SIMPLE MATH. NEVER EVER WOULD I WANT TO, AS IT'S BEEN RUMORED THAT I'D WANT TO PULL MONEY FROM THE PORT'S BUDGET. [03:00:01] THAT'S NOT WHAT I WOULD THINK IS A OPPORTUNITY, BUT I WOULD THINK THAT IN TALKING TO HIM AND JUST GETTING A VERY GOOD GENERAL KNOWLEDGE OF WHAT GOES ON IN OTHER PORTS, WE'RE THE NUMBER 4 PORT, BUT WE ARE THE ABSOLUTE LOWEST IN THE 20 THAT I'VE PULLED UP OF OVERNIGHT PARKING, JUST SOMETHING SIMPLE. OUR AVERAGE IS $15 A DAY OVERNIGHT PARKING. YOU LOOK AT MOST AS FAR AS AN AVERAGE ACROSS THE BOARD THERE AT 20. THE WAY THAT A LOT OF THEIR COMMUNITIES ARE ABLE TO MAKE THE MOST OF THE VISITORS AND THE SERVICES THAT WE AS A COMMUNITY HAVE TO TAKE ON IS THROUGH SERVICE FEES THAT ARE OUTSIDE OF THE ACTUAL PORT OF GALVESTON AND THEIR BUDGET. I THINK THAT THAT'S SOMETHING THAT WE NEED TO LOOK AT BECAUSE IN NO WAY WOULD I EVER WANT TO AFFECT THE PORT OF GALVESTON AND THE SUCCESS THAT THEY'RE HAVING. BUT I THINK AS A CITY, AS A SEPARATE ENTITY, AND OUR ABILITY TO SERVICE THAT PORT. I THINK THAT THAT HAS A LOT OF, THERE'S A LOT OF SUPPORT THAT WE OFFER FOR THEM TO OPERATE. AS CITIZENS, ME, BEING ONE, THE PERCEPTION IS, THE NEED THERE NEEDS TO BE A LITTLE BIT MORE VISION OR COLLABORATION, AS MISS SHARON LIKES TO CALL IT, OF HOW WE CAN POSSIBLY CREATE SERVICE FEES OR WHAT OPTIONS ARE FOR THAT OUTSIDE OF THE PORT. >> LET ME GIVE YOU A LITTLE BIT BACKGROUND BECAUSE I'M READING WHAT YOU'RE PUTTING DOWN, IT'S GOOD STUFF. WHAT DIFFERS US A LITTLE BIT, SO GALVESTON, WE HAVE TO WORK REALLY HARD TO BE DIFFERENT. WE DO A GOOD JOB OF BEING DIFFERENT. BY CHARTER, I CAN'T JUST GO UP ON FEES WITH THE PORT. THEY HAVE TO THE BOARD HAS TO AGREE TO IT. THAT'S ONE THING. TO DO, WE'RE IN A SITUATION WHERE YOU HAVE A LOT OF COMPETITORS TO THE PORT IN TERMS OF PARKING. THE PORTS MAKING VAST CAPITAL INVESTMENTS. THE PORT IS, WE ARE. THE PORT IS US, IS MAKING CAPITAL INVESTMENTS TO DRAW PEOPLE TO THE WATERFRONT, AND THEY'RE PEOPLE AND IT'S GOOD THAT THEY DO PRIVATE OPERATORS THAT ARE OPERATING AND MAKING A LOT OF MONEY FROM PARKING CARS OR MAKING SOME MONEY. THEY MAY NOT BE A LOT, THEY'RE MAKING SOME. YOU CAN'T, IF WE ASSESS A $5 FEE TO THE PORT, THAT'S FINE. WE CAN DO THAT THROUGH MUTUAL AGREEMENT. THE PORT WOULD HAVE TO AGREE TO IT, BUT WE COULD DO THAT. I'M NOT PROPOSING FIVE, BUT I'M JUST SAYING. BUT IF YOU DID THAT AND YOU COULDN'T ASSESS IT TO THE PRIVATE LOTS, YOU'RE GOING TO PUT THE PORT AT A DISTINCT DISADVANTAGE. THAT'S A POLICY DECISION IF YOU WANT TO DO THAT, BUT I WOULD WARN YOU AGAINST DOING THAT BECAUSE THEY HAVE BUILT UP A LOT OF DEBT AND THEY HAVE PLEDGED THESE REVENUES TO PAY THEIR DEBT. IF WE START ADVERSELY AFFECTING THE PORT'S INCOME, WE'RE GOING TO ADVERSELY AFFECT THEIR ABILITY TO ISSUE DEBT TO PAY DEBT, AND THIS WAS ALL BROUGHT UP, WE BEAT THE DEBT THING TO DEATH WITH THE PORT. WE JUST HAVE TO BE CAUTIOUS WITH THAT. NOW, ONE OF THE THINGS DON'S NOT HERE AND I DON'T WANT TO SPEAK FOR HIM. BUT WE HAVE TO WALK A VERY FINE LINE IN WHAT WE CAN ASSESS THE PRIVATE LOTS. IT QUICKLY BECOMES A TAX. WE HAVE TO BE ABLE TO SHOW THAT THAT NUMBER THAT WE'RE ASSESSING IS A FEE IS BACKED UP BY EXPENSES THAT ARE TRUE ABLE TO PEOPLE IN ORDER TO ASSESS IT, OTHERWISE, IT'S A TAX. IT'S NOT A REIMBURSABLE FEE, IT'S A TAX. THAT'S GOING TO BE TOUGH TO DO GIVEN THE FACT THAT THEY'RE SMALLER OPERATORS AND THEY'RE NOT, IT'S HARD TO HIT THEM UP WITH THAT MUCH OF IT BECAUSE THE PORT IS THE LINES SHARE OF THE PARKING, BUT YOU DO HAVE THEM OUT THERE. THAT INDUSTRY WILL GROW, ESPECIALLY IF YOU PUT THE PORT AT A COMPETITIVE DISADVANTAGE. VERY GOOD THOUGHT PROCESS. I MEAN, I MEAN, IN A SIMPLE WORLD, AT THE PORT, [NOISE] AND THIS IS NOT EVER GOING TO HAPPEN. IT IS NOTHING I PROPOSE, BUT THE PORT WAS JUST WATERFRONT PROPERTY THAT WAS BEING TAXED WITH DEVELOPMENT ON IT, EITHER COMMERCIAL OR RESIDENTIAL. YOU'D BE BRINGING IN A WHOLE LOT MORE THAN THE $3 MILLION YOU BRING IN FROM PARKING, TURNSTILES AND THEIR PILOT. THE SCHOOL DISTRICT WOULD BE A BIG WINNER IN THAT FRONT. THE SCHOOL DISTRICT IS THE LOSER IN THIS THING RIGHT NOW. WE PUT A LOT OF INVESTMENT ON THAT WATERFRONT FOR CREWS AND NONE OF IT'S TAXABLE. IT'S REALLY SAD BECAUSE YOU GO YOU'VE GOT A SHORT TERM RENTAL OPERATOR AND THEY'RE TAXING THEIR FURNITURE, THERE'S A $60 MILLION TERMINAL, THAT'S NOT ON THE TAX ROLL. >> BUT THAT STANDARD ACROSS THE [OVERLAPPING]. >> OH, IT IS. BUT I'M JUST SAYING THAT'S [OVERLAPPING] NO. BUT I'M JUST SAYING THAT'S WHY, THERE'S PROBABLY A BETTER WAY AND COUNCIL MEMBER PORRETTO KNOWS EXACTLY WHERE I'M GOING WITH THIS BECAUSE WE'VE DISCUSSED IT. THERE'S PROBABLY A BETTER WAY TO DO THIS. UNFORTUNATELY, I DON'T SEE THAT BETTER WAY BEING AN EASY SOLUTION. IT'S NOT ONE THAT WE'RE GOING TO HAVE A MEETING IN JANUARY, AND WE'RE ALL GOING TO AGREE TO IT. IT'S GOING TO TAKE MONTHS AND MONTHS AND MONTHS TO HAMMER OUT AND PROBABLY A CHARTER ELECTION. WELL, IT CAN DEFINITELY BE DONE. [03:05:02] I THINK YOU'RE EXACTLY RIGHT. >> THAT'S THE THING. I UNDERSTAND THAT. >> BUT IT CAN'T START. >> [LAUGHTER] I UNDERSTAND THAT, AGAIN, CONDENSING ALL OF OUR DISCUSSIONS, WE'RE TALKING ABOUT, ARE WE KICKING THE CANON? WE'RE TALKING ABOUT SEVEN YEARS DOWN THE ROAD? ARE WE TALKING ABOUT 10 YEARS DOWN THE ROAD? I THINK THAT PART OF OUR RESPONSIBILITY IS NOT ONLY FOR THE NOW, BUT PART OF THAT RESPONSIBILITY IS TO HAVE A SOLUTION SO THAT WE'RE NOT CONTINUING TO BURDEN OUR CITIZENS AND PUT THE STRAP ON THEM. THAT PARKING SERVICE FEE WAS JUST ONE THING THAT CAME OUT OF THAT DISCUSSION. LUCKILY HE OPENED THE LINE OF COMMUNICATION TO SAY, I'D LOVE TO GIVE YOU COMPARISONS AND WHAT I SEE AND OTHER PORTS COMPARED WITH YOUR ZONE AND I THINK THAT EDUCATION AND KNOWLEDGE IS A LOT TO PASS ON. LIKE I SAID, THAT'S NOT TO UNDERMINE THE PORT OF GALVESTON AND WHAT ROGER HAS ACCOMPLISHED SO FAR. IT'S JUST SIMPLY, WE NEED TO HAVE THIS AS A VISION OF THE COMMUNITY OF GALVESTON, NOT JUST THREE SECTORS THAT ARE ALL TRYING TO DO IT ON THEIR OWN. >> I AGREE. >> I THINK THAT'S ONE OF THE BIGGEST THINGS THAT WE AS A COUNCIL, AND WE AS LEADERS OF THE COMMUNITY, DECADES PAST HAVE NOT OVERCOME. >> KEEP IN MIND, WE HAVE TURNED OURSELVES INTO A VERY CAR ORIENTED DESTINATION. WE HAVE A LOT OF DAY TRIPPERS, WE HAVE A LOT OF CRUISERS THAT COME IN IN CARS. WE'RE A CITY THAT WAS DESIGNED WITH A WHOLE STREET SYSTEM AND DRAINAGE SYSTEM, EVERYTHING ELSE THAT WAS DESIGNED BEFORE CARS. [LAUGHTER] WE'RE PUSHING IN AND REMEMBER, EVEN WHEN CARS STARTED APPEARING, COME TO MY HOUSE ON A WEEKEND WHEN MY KIDS ARE HOME AND THERE'S FIVE CARS PARKED THERE. WHEN MY HOUSE WAS BUILT, WE PROBABLY THE PEOPLE WHO BUILT IT MAY HAVE HAD ONE CAR. WE ARE REALLY BURDENING THE SYSTEM HERE AND WE'RE PUTTING A LOT OF EXPENSE TO MAINTAIN A SYSTEM FOR A LOT OF CARS THAT ARE COMING ONTO THE ISLAND. CARS ARE EXPENSIVE FOR US. THEY'RE EXPENSIVE. >> THANK YOU, BEAU. APPRECIATE IT ANYMORE. >> THAT'S VERY GOOD IT'S A VERY GOOD OBSERVATION. >> YOU HAVE CONTACT BECAUSE IT WOULD BE GREAT TO GET LIKE. >> YOU AIN'T GETTING IT. [LAUGHTER] THAT WOULD BE GREAT. >> I'LL TAKE MY TIME FIRST. >> IT WOULD BE GREAT FOR YOU TO CALL AND INVITE HIM TO TALK BECAUSE HE WENT TO THE PARTY FOR. IT WOULD BE GREAT FOR. >> [OVERLAPPING] I'M MESSING WITH. THERE'S GOING TO BE SOME CONVERSATIONS. I'D LIKE JUST. I THINK THAT WE'RE GOING TO BEING ABLE TO COMMUNICATE WITH PEOPLE LIKE THAT. >> THAT'S HUGE. >> THERE'S SOME THINGS WE'RE NOT REALLY UNIQUE IN THAT WE THINK WE UNIQUE, BUT WE'RE NOT. >> THAT YOU'VE HEARD ME SAY BEFORE, GUYS, IT'S ONE THING TO BE POPULAR, BUT YOU DON'T WANT TO BE THE WALMART OF DESTINATIONS, YOU WANT TO COME ON, LET'S AT LEAST BE TARGET. >> YOU HAVE TO REMEMBER WHEN YOU LOOK AT THE PORT, THAT'S 1.5 MILLION PEOPLE. >> 1.6 IS OVER [INAUDIBLE]. >> 1.6, BUT WE TALK ABOUT THE [OVERLAPPING] 8.9 MILLION. >> OF THAT 1.6. >> RIGHT. THERE'S A WHOLE LOT OF OTHER PEOPLE THAT ARE CREATING HOT TAX. THE PORT DOESN'T GET A HOT TAX. >> [OVERLAPPING] THEY RECEIVE HOT TAX DOLLARS FROM OUR CITIZENS. >> PORTS AND ENTERPRISE OPERATION. >> CAN I JUST FINISH WHAT I'M SAYING? THANK YOU. MY POINT IS, AND THAT'S WHY I THINK WE NEED TO GET REALLY CREATIVE ABOUT HOT TAX IS THAT'S EVEN A GREATER BURDEN. I AGREE WITH YOU 100% IN WHAT YOU SAID. I THINK IT'S TIME TO STOP TALKING ABOUT IT AND IT'S TIME TO START TAKING ACTION. >> WE'VE A GOT AN AGENDA ITEM COMING UP. I THINK ON SEPTEMBER 9TH, WE'LL BE TALKING ABOUT THAT EXACT THING. DAVID. >> I'M GOING TO KIND OF BUILD UPON WHAT COUNSEL ROLLINS HAS SAID. IT'S NICE TO HEAR THAT THERE'S A GENERAL CONSENSUS OF A REAL NEED TO INCREASE SERVICE FEES FROM THE TOURISM INDUSTRY. WE'VE BOUNCED THESE ROUND TABLE, EITHER INDIVIDUALLY OR WITH MANAGEMENT. NONE OF THESE IDEAS RIGHT NOW ARE REFLECTED IN THE CURRENT BUDGET. I UNDERSTAND THAT. WE DO HAVE A GAP WE HAVE TO IDENTIFY AND WE HAVE TO COME UP WITH ADDITIONAL REVENUE. I THINK IT BEHOOVES US IN VERY FAST ACTION TO COME UP WITH WHAT THOSE CREATIVE IDEAS ARE, AND WE'VE ALREADY HEARD FROM THEM, RELATED TO THE 1.6 MILLION CREWS PASSENGERS THAT WE HAVE, THE OBJECTIVE OF SERVICE FEES OR TARIFFS ARE TO PASS THOSE ONTO THE USERS THEMSELVES. [03:10:01] WE DID IT INCREMENTALLY LAST YEAR, COUNCIL MEMBER ROB. I THINK THAT IT'S NOT $5 FOR PARKING. IT'S NOT A DOLLAR FOR CRUISE PASSENGERS, BUT THERE'S GOT TO BE AN ANALYSIS THAT SAYS, HOW DO WE GENERATE ADDITIONAL REVENUE FROM OUR TOURISTS? [OVERLAPPING] HOLD ON. HOLD ON, NOT JUST CRUISE ON. LET ME FINISH, JUST LIKE YOU SAID. ADDITIONAL PARKING COSTS ON THE SEAWALL. DO A COMPARISON STUDY ON PARKING COSTS FROM OTHER DESTINATION OF BEACH RESORT CITIES. WHERE [OVERLAPPING]. I UNDERSTAND IT ONLY GOES TO THE BEACH, BUT IT'S INCREASING THE AMOUNT OF REVENUE THAT WE HAVE AVAILABLE FOR EXPENDITURE ON SERVICES. >> IT HAS TO BE APPROVED BY THE GLO. >> I UNDERSTAND IT HAS TO BE APPROVED BY THE GLO. I'M NOT SAYING ANYTHING OF THESE ARE EASY. I'M TALKING ABOUT INCREASING THE PAYMENT IN LIEU OF TAXES FROM THE PORT. THAT HADN'T BEEN TOUCHED SINCE THE 40S OR 50S. WE NEED TO COMPLETE, WE NEED TO TAKE A HOLISTIC VIEW OF THAT RELATIONSHIP BETWEEN THE PORT AND THE CITY AND THE SERVICES THAT WE PROVIDE AS A CITY THAT HELPS SUPPORT THE ECONOMIC ENGINE THAT IS THE PORT. WE ABSOLUTELY HAVE TO AND MAKE SURE THAT WE PRESERVE THAT AND ENHANCE THAT. >> BUT THAT STARTS WITH US, FIRST OFF, BUT WE'RE NOT GOING TO BE ABLE TO SOLVE THAT TODAY. WE'RE NOT GOING TO BE ABLE TO SOLVE THAT BY OCTOBER. BUT I DO LIKE THE FACT THAT COUNCIL IS PREPARED TO VERY QUICKLY ADDRESS THIS SO THAT WHEN WE COME TO THIS POINT IN TIME NEXT YEAR, WE ALREADY HAVE THOSE IDENTIFIED AND WORKED OUT. IT'S GOING TO TAKE A LOT OF DATA, JUST LIKE WE TALKED ABOUT WITH POLICE, WHERE WE'RE IDENTIFYING WHAT THE IMPACTS ARE RELATED TO OUR TOURISTS, RELATED TO OFFENSES BY PEOPLE WHO DON'T LIVE ON THE ISLAND SO THAT HELPS TO INFORM HOW WE COVER THOSE COSTS AS WELL. THAT'S REALLY WHAT I WANTED TO BUILD UPON POINTS. THANK YOU. >> VERY GOOD. >> YOU DIDN'T ANSWER THE QUESTION. >> WHAT QUESTION? >> ARE YOU GOING TO SUPPORT ANY TAXING? >> A LOT OF PEOPLE CAN'T MAKE THAT DECISION POSSIBLY RIGHT NOW UNTIL THEY GET MORE DATA. BUT I AM ANXIOUS FOR ANY COMMENTS AND ANY STANCE THAT WOULD BE GIVEN DIRECTION TO STAFF. I'M ASKING FOR COUNSEL'S INPUT. I'M NOT ASKING FOR, ARE YOU GOING TO VOTE FOR THIS OR THAT? DAVID, ANY MORE THOUGHTS ON THIS? >> I THINK IT WOULD BE IRRESPONSIBLE FOR US WITH THE INFORMATION THAT HAS BEEN PRESENTED TO US IN A BUDGET TO KEEP THE TAX RATE AT THE SAME THAT IT IS GIVEN OUR CONTRACTUAL OBLIGATIONS FOR SERVICES. >> WELL, FIRST OF ALL, I THINK THE STAFF HAS DONE AN EXTRAORDINARY JOB WITH A VERY COMPLEX SITUATION HERE. SO I THINK THEIR WORK IS JUST OUTSTANDING AND NOT WITHSTANDING LORI'S COMMENT ABOUT THE ACCURACY OF THE TAX BROUGHT IN. THAT CERTAINLY HAS TO BE CHECKED, OBVIOUSLY. BUT WE'RE A TOWN WITH AN EXTRAORDINARY COST ASSOCIATED WITH TOURISM. AND WHEN WE TALK ABOUT BUDGET, YOU CAN DO TWO THINGS. YOU CAN RAISE WHAT YOU COLLECT OR YOU CAN CUT. AND SO ALMOST THIS WHOLE DAY WE'VE BEEN TALKING ABOUT WHERE CAN WE RAISE MORE MONEY? OBVIOUSLY, NOBODY AROUND THIS ROOM WANTS TO RAISE TAXES, AND SO THAT'S THE ONLY ALTERNATIVE. I'M VERY ENCOURAGED BY THE UNANIMITY OF THE CONCEPT OF MAKING THE TOURISTS OR WHO CONTRIBUTED EXTRA COST PAY FOR IT FOR OUR CITY. I'M NOT SURE IF THIS IS A NEW THING OR NOT, BUT THERE SEEMS TO BE A LOT OF FOCUS ON THAT, AND WE'RE MOVING WITH OUR TECHNOLOGY, WE'RE MOVING TOWARDS THE DATA TO BE ABLE TO TRACK THAT AND TRACK NOT ONLY WHAT THE ACTUAL COST OF THE TOURISM IS, BUT TRACK HOW TO TARGET THE REVENUE FROM THEM COMING BACK TO THE CITY. AND THIS CAN'T BE DONE OVERNIGHT, OF COURSE. I THINK IT WOULD BE A LITTLE BIT IRRESPONSIBLE AT THIS POINT TO KICK THAT CAN DOWN THE ROAD, WE'RE SETTING THE BENCHMARK, AS WE SPOKE ABOUT EARLIER WITH THIS TAX RATE. AND IF WE KICK THE CAN DOWN THE ROAD, I THINK IT'S IRRESPONSIBLE TO A FUTURE COUNCIL AS WELL AS TO THE CITIZENS WHEN WE HAVE TO AT SOME POINT, DO AN EXTRAORDINARY BUMP. ALL OF THESE COSTS ARE NOT GOING AWAY. AND SO FOCUSING ON RAISING MORE MONEY IS WHAT WE NEED TO DO. AND WE DISCUSSED THAT ALMOST ALL DAY TO DAY SO FAR SINCE WE'VE BEEN HERE. AND I THINK STAFF HAS THE DIRECTION NOW TO REALLY FOCUS ON THE CONCEPT OF MAKING THE TOURISM DOLLARS PAY TO TAKE THE LOAD OFF OF THE CITIZENS. THAT'S A VERY POPULAR CONCEPT AND THERE'S A LOT OF MOVING PARTS TO THAT. THAT INCLUDES THE CRUISE INDUSTRY AS WELL, AND FINDING WAYS TO MAKE THAT MATCH A LITTLE MORE POSITIVE ABOUT THE IMPACT OF THE TOURISM ON THE ISLAND AND HOW WE'RE GOING TO MAKE THEM PAY FOR THAT. SO AT THIS POINT RIGHT NOW WHERE WE ARE, I WOULD ENCOURAGE CONTINUING ON THE PATH AS STAFF IS RECOMMENDED. [03:15:01] >> VERY GOOD. I'M GOING TO WRAP THIS UP, MAKE SOME COMMENTS ON THIS. FIRST OF ALL, THANK YOU, COUNSEL. THIS IS A GOOD DISCUSSION ON THE BUDGET. THIS IS A VERY HARD DECISION, AND I'M SPEAKING FOR MYSELF, BUT IT'S A HARD DECISION BECAUSE YOU WANT TO KEEP THE TAX RATE AS LOW AS YOU POSSIBLY CAN. THAT'S THE WHOLE GO HERE TO TRY TO BE AS SUPPORTIVE OF THE NEEDS OF OUR COMMUNITY OUT THERE. WE HAVE TO BALANCE THAT WITH MAINTAINING THE SOLVENCY OF THIS CITY. AND I LOOK AT THIS AS A BUSINESS OPERATION. I LOOK AT IT AS IF IT WAS MY PERSONAL BUSINESS, HOW WOULD I HANDLE THAT? AND WHAT I DO FEEL, I DO FEEL THAT THIS COUNCIL IS EXTREMELY INNOVATIVE. I THINK THIS COUNCIL IS VERY PASSIONATE ABOUT LOOKING AT ALTERNATIVE REVENUE SOURCES AND I THINK AND WE'LL GET THOSE ON THE AGENDA THAT WE WILL BE ABLE TO DISCUSS OR TO DETERMINE SOME ALTERNATIVE REVENUE SOURCES THAT WILL BE SUPPORTIVE AND GET US OUT OF SOME OF THESE HOLES THAT WE FEEL WE'RE MOVING INTO WITH THIS BUDGET. THE PROBLEM IS IT'S NOT GOING TO HAPPEN THIS CURRENT FISCAL YEAR. WE CAN TALK ABOUT IT. WE'LL NEED TO WORK WITH IT AT THE PORT FROM THE STANDPOINT OF THE PORT AS BRIAN ALLUDED TO. ACCORDING TO THE CHARTER, THE PORT DOES NOT WHATEVER WE PASS HERE AND SAY WE WANT TO DOUBLE THE PARKING RATE AT THE PORT. THEY HAVE NO OBLIGATION TO HONOR THAT. WE HAVE A DOLLAR THAT HAS BEEN AGREED UPON ON AT THE PORT. THEY CAME TOGETHER AND WANTED TO PARTNER AND BE A GOOD PARTNER WITH THE CITY AND WE WORKED OUT AN MOU THAT THEY SIGNED TO SUPPORT THAT. THEY DID NOT HAVE TO DO THAT. THEY ARE NOT LIKE A PRIVATE LOT IF WE PASS AN ORDINANCE INSTRUCT THAT THERE HAS TO BE A DOLLAR AN INCREASE A PRIVATE LOTS. THE PORT DOESN'T HAVE TO NECESSARILY HONOR THAT. SO WE DO HAVE THAT ISSUE TO LOOK AT, AND THAT'S GOING TO BE REAL IMPORTANT. I'M VERY LEERY ABOUT PLUGGING BUDGETS TO PUT IN NUMBERS THAT I THINK WE'RE GOING TO GET SO AND SO AND SO WE'RE GOING TO BE A MILLION AND A HALF DOLLAR SHORT. AND SO WE JUST NEED TO PLUG AN ITEM THERE AND PUT A MILLION AND HALF IN THERE. IN ME, THAT'S A TOTAL DECISION THAT PUTS US ON A PATH OF BEING INSOLVENT. I JUST DON'T WANT TO DO THAT, AND I DON'T WANT TO MAKE SHOTGUN TYPE RESPONSES BASED ON ANECDOTAL INFORMATION. WE'VE GOT TO HAVE DATA IN MY MIND BEFORE WE MAKE ANY DECISIONS THAT IS GOING TO BE IMPACT THESE INDUSTRIES OUT THERE. I HAVE SAID OVER AND OVER AGAIN THAT THE REGISTRATION FEE FOR SHORT TERM RENTALS NEEDS TO BE APPROPRIATE. THE SHORT TERM RENTAL REGISTRATION FEE NEEDS TO PAY FOR THOSE ACTIVITIES THAT THE CITY HAS TO PUT OUT ABOVE AND BEYOND OUR NORMAL ACTIVITIES TO SUPPORT THESE SHORT TERM RENTALS AND THAT REGISTRATION FEE SHOULD COVER THAT. I AM NOT FOR USING THESE SHORT TERM RENTALS AS A SLUSH FUND TO BRING IN MORE MONEY FOR THIS CITY. THAT'S JUST ME. AND I WOULDN'T DO THAT FOR THE RESTAURANTS. I WOULDN'T DO THAT FOR ANY INDUSTRY ON THE ISLAND HERE TO HAVE THEM BE AS A ONE TIME OR NOT A ONE TIME, BUT A ONE INDUSTRY SLUSH FUND TO HELP MAKE THIS CITY MOVE FORWARD. SAYING ALL THAT, I THINK STAFF HAS COME UP WITH A GOOD TAX RATE TO GET US THROUGH THIS. MY WIFE WILL TELL YOU I AM THE MOST CONSERVATIVE PERSON PROBABLY SHE HAS EVER MET WHEN IT COMES TO FINANCIAL THINGS. I'M VERY CONSERVATIVE ABOUT THAT. BUT I DO THINK AND JUST BECAUSE WE MAKE A COMMITMENT, IF COUNSEL DOES, TO MAKE A COMMITMENT TO RAISE THIS TAX RATE THIS YEAR, THAT DOESN'T MEAN THAT WE'RE ON THAT PATH OF EVERY YEAR RAISING THIS TAX RATE. IT'S AN EBB AND FLOW TO KEEP THE SOLVENCY OF THE CITY AS STABLE AS POSSIBLE. AND I WOULD SAY THIS TOO, THAT I AM A SUPPORTER. I WANT TO SEE IF WE CAN GET A COLA INCREASE FOR THE CIVILIAN EMPLOYEES. WE NEED TO HAVE SOMETHING TRIGGERED IN ON THIS. AND IF WE DO THAT, THAT IS GOING TO REQUIRE SOME EXTRA REVENUE TO MAKE THAT HAPPEN ON THAT. I'VE BEEN BEHIND THE SCENES WITH STAFF THROUGH THIS ENTIRE BUDGET PROCESS, AND THEY HAVE WORKED DILIGENTLY TO LOOK AT ALL SOURCES OF REVENUE. I THINK MARIE BRINGS UP A GOOD POINT. IF THAT PROPERTY TAX CALCULATION IS INAPPROPRIATE, [03:20:05] THEN WE NEED TO CHANGE THAT AND THAT WILL HAVE A BEARING ON HOW WE LOOK AT THAT SO I'M KEEPING OF COURSE AN OPEN MIND ON THAT SO THAT'S MY THOUGHT ON THIS. WE'LL MOVE FORWARD ON SEPTEMBER 12TH. WE'LL BRING THIS HERE. ONE LAST THOUGHT IF THIS MOVES TO A LOWER TAX RATE, COUNSEL, WE DON'T HAVE A SAY ON HOW THAT IS DONE. WE DON'T HAVE A SAY TO TELL TO BRIAN, BRIAN, I WANT YOU TO CUT THIS. I WANT YOU TO CUT THAT. THAT IS IN VIOLATION OF THE CHARTER. I CHECK WITH DON ON THAT, AND THAT'S IN VIOLATION OF THE CHARTER. WHAT WE DO HAVE THE ABILITY TO DO IF THIS COMES IN AS A LOWER TAX RATE, WE HAVE THE ABILITY TO SAY, BRIAN, WE'RE GOING TO STAY WITH A FLAT TAX RATE, AND DIDN'T COME BACK AND TELL US HOW YOU'RE GOING TO MAKE THAT HAPPEN. AND THERE WILL BE SOME CUTS. I DON'T KNOW IF WHAT THOSE CUTS WILL BE. I'M NOT INVOLVED WITH THAT, BUT BRIAN KNOWS THIS BACKWARDS AND FORWARDS AND HE'LL BRING IN. I'LL TELL YOU ONE THING ABOUT OUR STAFF IF THIS COUNCIL TELLS HIM, WE WANT THIS TAX RATE, HE IS GOING TO BRING BACK A RESPONSE TO THAT. HE'S NOT GOING TO SAY WE CAN'T DO IT. HE'LL BRING BACK A TAX RATE THAT WILL SUPPORT WHAT WE WANT HERE, AND HE'LL SHOW YOU, WE NEED TO DO THIS. WE NEED TO CLOSE THIS. WE NEED TO CLOSE THIS PART, WE NEED TO DO THIS AND THIS AND THIS. HE'LL BRING THAT FORWARD TO US, AND THAT'S SOMETHING THAT COUNCIL THEN COULD LOOK AT. SO BRIAN, DO YOU HAVE ANY QUESTIONS MOVING FORWARD? >> NO. I WOULD JUST WANT TO ECHO WHAT THE MAYOR SAID ABOUT THE CIVILIANS. THESE GUYS AND I'M JUST GOING TO PUT A PLUG IN FOR THEM, THEY BUSTED THEIR ASSETS FOR YOU GUYS AFTER THAT HURRICANE. THEY WORKED THROUGH THAT ENTIRE STORM. THEY NEVER WENT IN. THEY WERE OUT IN THE RAIN, THEY WERE OUT IN THE WIND. THEY'VE WORKED 18 HOUR DAYS SINCE THEN, THEY'RE STILL WORKING WEEKENDS. THEY'RE BUSTING IT. AND I WOULD HATE TO HAVE THEM OVERLOOKED. I'M NEVER GOING TO SHORT CHANGE OUR PUBLIC SAFETY GUYS. THEY'RE THE BACKBONE OF WHAT THE CITY DOES, AND I'M GLAD THAT WE'RE FINALLY PAYING THEM ADEQUATELY. AND WE AT LEAST WE LOOK LIKE WE'RE GOING TO BE CONTINUING TO PLEDGE TO DO SO. BUT WE CAN'T FORGET THE GUYS THAT MAKE IT HAPPEN FOR US. THE GUYS THAT PICK UP THE TRASH, THE GUYS THAT KEEP YOUR SEWER MOVING, THE GUYS THAT MAKE SURE THE WATER RUNS AT YOUR TAP. THE GUYS THAT MOW YOUR PARKS AND KEEP THESE STREETS LOOKING WELL. WE CANNOT LOSE SIGHT OF THAT. SO PLEASE I ASK YOU TO JUST DON'T LOSE SIGHT OF THAT, AND I'M LEAVING OUT OTHER PEOPLE. I'M LEAVING OUT CSILLA'S ENTIRE STAFF UP THERE THAT'S BEEN WORKING TIRELESSLY TO TRY TO MAKE THIS THING WORK. BEVERLY, WHO'S BEEN WORKING THROUGH ALL THE PERSONNEL SIDE OF THIS BECAUSE EVERYTHING HAS A PERSONNEL BEEN TO IT. WE'VE GOT HR WORKING ON THIS. SO THERE'S A WHOLE LOT OF COMPONENTS, BUT PLEASE DON'T LOSE SIGHT OF THEM IN THIS. THAT WOULD BE MY ONLY ASK OF YOU AS WE MOVE THROUGH THIS. >> I WOULD SAY I AGREE. AND I THINK THERE'S A WAY WE CAN [INAUDIBLE] >> I'M HOPING THAT YOUR COMMENTS THAT WE HAVE A LOT OF MORE EXTRA MONEY IN THIS PROPERTY TAX THAT IS CONFIRMED BY CHERYL JOHNSON COMES TO PASS. >> IF THERE'S $2.5 MILLION AN ERROR IN THAT, THEY'RE GOING TO BE A LOT OF OTHER CITIES THAT ARE REALLY HAPPY BECAUSE WE'VE USED ALL THE SAME CALCULATIONS THAT THEY HAVE, SO THAT'S GOING TO BE VERY INTERESTING. >> THERE'S ONE FINAL THING THAT JUST OCCURRED TO ME. EVEN WITH OUR EXTRAORDINARY COST TO A TOURISM, ESPECIALLY WITH POLICE AND FIRE AND EMS, WE'RE STILL AT THE LOWER END COMPARED TO OTHER COUNTY MUNICIPALITIES IN TERMS OF OUR TAX RATE. >> ONE LAST THING. I'M GLAD YOU MENTIONED THE EBB AND FLOW BECAUSE THAT WAS ONE THING IN MY MIND. I WAS WONDERING, ARE WE GOING TO HAVE TO CONTINUE DOWN THE LINE TO RAISE? >> AS BRIAN MENTIONED COMING UP FOR 26 27, I'M HOPING WE'RE GOING TO SEE MARGARITAVILLE MOVING FORWARD TIARA WILL BE BREAKING GROUND HERE SHORTLY. >> YEAH. AND SOME WEST END DEVELOPMENTS TOO, SOME SMALLER ENCLAVES. BUT WE ALSO DON'T WANT TO BACK OURSELVES INTO A CORNER WHERE WE HAVE TO ACCEPT ANYTHING ANY DEVELOPER BRINGS BECAUSE THERE ARE EXCELLENT DEVELOPERS OUT THERE AND THERE ARE SOME THAT JUST AREN'T. >> I AGREE 100%. AND I WISH YOU WOULD STOP SAYING THAT RATHER. [LAUGHTER] >> I CAN GET A MIXED UP. [LAUGHTER] BUT WE NEED TO MAKE SURE THAT WE DON'T WANT TO BACK OURSELVES IN A CORNER. AND WHEN I BRING YOU A BUDGET, I'M ALREADY WORKING ON THE NEXT YEAR'S BUDGET. THIS ONE'S IN THE BOOKS. SO WE'LL MAKE IT WORK WHATEVER YOU GUYS WANT TO DO, BUT WE'VE GOT TO CONTINUE TO LOOK DOWN THE LINE HERE OR ELSE WE'RE WRITING CHECKS WE CAN'T CASH. >> WELL, AND EQUALLY TO THAT STATEMENT, WHEN WE LOOK AT DEVELOPERS THAT ARE COMING IN, [03:25:03] WE NEED TO MAKE SURE THAT THEY'RE SUPPORTING INFRASTRUCTURE. >> [INAUDIBLE] DEVELOPER COST OR DEVELOPER COST. >> YEAH. >> COUNCIL, WE'RE GOING TO MOVE TO ITEM 3C HERE. COUNCIL, YOU WANT TO MOVE FORWARD? I'M FINE TO MOVE FORWARD 3C. [3.C. Discussion of the City Auditor’s Audit Plan for 2025 (G. Bulgherini - 20 min)] PLEASE READ 3C. >> 3C, DISCUSSION OF THE CITY AUDITORS AUDIT PLAN FOR 2025. >> WE HAVE OUR ESTEEMED CITY AUDITOR, AND YOU BROUGHT STAFF WITH YOU, IS THAT RIGHT? >> YES. >> WOULD YOU GLENN FIRST OF ALL, INTRODUCE YOURSELF AND THEN INTRODUCE YOUR STAFF, IF YOU WOULD, PLEASE. >> I'M GLENN BULGHERINI THE CITY AUDITOR [INAUDIBLE] >> GLENN HAS SUBMITTED HIS AUDIT PLAN TO YOU, COUNCIL. IT CAME TO YOU EARLIER ON FOR THIS COMING FISCAL YEAR. WE HAVE TO APPROVE THAT IS BEST TO APPROVE IT BEFORE WE APPROVE AT THE TIME WE APPROVE OUR BUDGET SO HE CAN MOVE FORWARD ON THIS. AND HE DOES THIS ANNUALLY. HE BRINGS THIS TO US. AND THIS IS OUR TIME FOR GLENN TO GET HIS THOUGHTS OUT TO YOU AND WHY THIS PLAN HE FEELS IS APPROPRIATE AND THEN GET INPUT FROM US IF WE WANT TO CHANGE THAT PLAN BEFORE IT'S APPROVED. GLENN, GLAD TO HAVE YOU. >> CAN I ASK ONE QUICK. THE ONE ON THE AGENDA IS THE CORRECT ONE, GLENN? WE WERE SENT ONE, BUT I DON'T KNOW WHETHER [OVERLAPPING] INTERRUPTED. THANK YOU. >> THE ONLY CHANGE WAS THEY WERE NUMBERED TO THE SIDE. SO DOES EVERYONE HAVE AN UPDATE? >> YEAH. >> AMY, WHEN [INAUDIBLE] CHARGE OF EMPLOYED LAST NIGHT. >> [OVERLAPPING] WELL, WHAT WE DID IS ON ITEM NUMBER 1, WE ARE DOUBLING UP THE HOT TAX AUDITS AND ON ITEM NUMBER 2, WHAT WE PLAN TO DO IS TRIPLE THE SALES TAX AUDIT. [LAUGHTER] >> GLENN, JUST SO FOR THE 60 THAT YOU PROJECTED FOR THIS COMING YEAR OF THE HOT TAX AUDITS, THAT'S THE SAME AMOUNT YOU DID LAST YEAR? >> ACTUALLY, NO. WE ONLY DID 30. >> OH, SO THIS WOULD BE A DOUBLE THE AMOUNT. >> WE'RE DOUBLING IT. >> ON THE SALES TAX AUDITS, YOU'RE GOING TO DO 45. I UNDERSTAND YOU DID A LOT LESS LAST YEAR, IS THAT RIGHT? >> YES. TYPICALLY WITH 15 SALES TAX AUDITS, WE BRING IN AN EXTRA $200,000 PER YEAR. >> YOU'RE RECOMMENDING TO TRIPLE THAT? >> YES. >> THANK YOU. YES, MA'AM. >> GLENN, SINCE YOU'RE THE MASTER OF COLLECTING HIGH TAX, THEY ESTIMATE THAT THERE'S LIKE 300 OUT THERE THAT ARE STILL ROGUE. ARE THESE 60 PART OF THOSE SUSPECTED 300 OR IS THERE ANY WAY? >> THEY ARE ALL PART OF THE SUSPECTED 300 THAT ARE NOT PAYING AN ADEQUATE AMOUNT OF HOT TAX. >> I ASSUME YOU'RE AUDITING ALL WHAT 4-5,000 SHORT TERM RENTAL? >> A TOTAL OF 5,000 SNR AND ABOUT 300 ARE ESTIMATED TO NOT BE PAYING. >> IS THE 258, THAT'S THE NUMBER THAT WE GOT FROM THE PARK RIGHT? 300. >> IT WAS 300. WE WILL HOPEFULLY BRING IN SOME MONEY THERE. ITEM NUMBER 3, THAT'S FOR THE CITY, AND WE WILL LOOK INTO CREDIT CARDS HERE AT THE CITY. WE'RE DOING THIS CURRENTLY AT THE PARK BOARD. WE WILL ALSO ON ITEM NUMBER 4, I THINK WHAT WE SEE IS ON ITEM NUMBER 4, THAT WE ALSO NEED TO AUDIT TRAVEL AT THE PARK BOARD. >> CAN I GET BACK ONE? SINCE WE WILL BE ABLE TO TAKE CREDIT CARDS, WHICH I THINK IS IDEAL, ARE WE GOING TO CHARGE THEM THE CREDIT CARD FEE? >> WHICH CREDIT CARDS? YOU TALK ABOUT ON THE CITY SIDE? >> YEAH. >> WE ALREADY DO CHARGE A FEE. [03:30:02] I THINK WHAT GLENN'S LOOKING AT IS HE'S USING CREDIT CARDS I THINK YOU'RE LOOKING AT OUR KEY CARD PURCHASE? >> YES, CORRECT. >> HE'S LOOKING AT CITY I DON'T HAVE A CITY CREDIT CARD, BUT THERE ARE CERTAIN CITY DEPARTMENTS LIKE THE POLICE AND OTHERS HAVE CITY CREDIT CARDS. HE'S JUST GOING TO LOOK INTO IT TO MAKE SURE THEY THEY'RE MEETING ALL OF OUR POLICIES. THAT'S OKAY. >> NO, WE'RE HAVING A HOT FLASH. [LAUGHTER]. >> WHAT WE'RE CURRENTLY DOING IS WE'RE LOOKING TRANSACTION BY TRANSACTION AT THE PARK BOARD OR THEIR CREDIT CARDS, AS WE WERE INSTRUCTED TO DO BY COUNCIL. THIS IS A TIMELY PROCESS AND WE WANTED TO GO AHEAD AND DO THAT AT THE CITY AS WELL. OF COURSE, AGAIN, WE WANTED TO LOOK AT THE TRAVEL AT THE PARK BOARD. ITEM NUMBER 5, WE WANTED TO LOOK AT THE TRAVEL AT THE CITY WHILE WE WERE DOING THAT. BASED UPON RECOMMENDATIONS FROM THE DEPUTY CITY MANAGER, WE WANTED TO WAIT I'M SKIPPING AHEAD HERE. THIS WERE ON THE USE OF OVERTIME. NO, THIS IS BASED UPON RECOMMENDATION FROM THE CITY MANAGER. HE WANTED OVER TIME TO BE LOOKED AT WAYS TO CUT OVER TIME WITH THE PUBLIC WORKS DEPARTMENT. ITEM NUMBER 7 ON THE POLICE SEIZED, HE WANTED US TO LOOK AT POLICE SEIZED FUNDS. I THINK WE'VE DONE THIS IN THE PAST, BUT HE WANTED IT AGAIN. IN ITEM NUMBER 8 IS ALSO THE DEPUTY CITY MANAGER'S RECOMMENDATION TO LOOK AT LARGE PURCHASES OVER $100,000. WE ARE GOING TO MAKE SURE THAT ALL POLICIES AND PROCEDURES ARE BEING ADHERED TO PARTICULARLY ON THAT ONE, WE'RE GOING TO LOOK AT THE USE OF THESE LARGE PURCHASES IF THEY'RE BEING UTILIZED. >> ANY QUESTIONS FOR GLENN? YES, BOB. >> DO WE AUDIT THE WARS BOARD AND REVIEWS LIKE WE DO WITH THE PARK BOARD IN THE CITY, EITHER AUDIT OR REVIEW AUDITS THAT THEY DO LIKE WE DO FOR THE PARK BOARD IN THE CITY FOR LIKE, TRAVEL AND TRAINING AND CREDIT CARDS? >> SAY THAT AGAIN. >> I WAS ASKING IF WE TYPICALLY REVIEW THE WARS BOARD, LIKE WE REVIEW THE PARK BOARD IN THE CITY FOR THINGS LIKE TRAVEL, TRAINING, CREDIT CARDS. >> WE SURELY CAN. YES, SIR. >> IF WE'RE ALREADY DOING THE PARK BOARD IN THE CITY, IT WOULD MAKE SENSE TO JUST GO AHEAD AND WRAP IN THE PORT AS WELL. SINCE YOU'RE GOING TO BE FOCUSED ON THAT PARTICULAR ACTIVITY. >> YES. >> I CAN TELL YOU FROM A MANAGEMENT PERSPECTIVE, I'D LIKE TO SEE A COMPARATIVE BECAUSE THEY MAY BE DOING SOMETHING BETTER THAN WE ARE AND WE MIGHT BE DOING SOMETHING BETTER THAN THEY ARE IN THAT WAY WE HAVE LIKE PRACTICES, AND WE HAVE BEST PRACTICES. >> RIGHT. >> TOTALLY AGREE. >> I WOULD AGREE WITH THAT. YES, SIR. >> ALL RIGHT. >> LET'S ADD THAT IF COUNCIL FEELS COMFORTABLE WITH THAT. ANY OTHER THOUGHTS? >> YEAH. [OVERLAPPING] ABOUT FOUR MONTHS, IF WE'RE ALL DOING IT TOGETHER, I GUESS THAT'D BE ABOUT FOUR MONTHS FOR THE ESTIMATED MONTHS TO COMPLETE. >> YOU ADDING ANY TIME TO. WELL, THIS IS PRETTY MUCH, THERE'S THREE OF US NOW. >> COULD KNOCK DOWN THE TIME? >> I'M PRETTY MUCH TO DO THIS COMPLETELY. I'M AT MY LIMIT RIGHT NOW. >> THAT'S OKAY. LET'S TALK ABOUT THAT TOO, BECAUSE I'M NOT DONE. YEAH. ONE OF THE SOURCES OF REVENUE, MARIE, YOU JUST SAID IT, IS THIS THE SHORT TERM RENTAL AND THE 300 THAT WE'VE GOT OUT THERE THAT ARE ROGUE. I'D LIKE TO HAVE A DISCUSSION ABOUT WHAT DOES THAT LOOK LIKE IN TERMS OF IF YOU'RE ABLE TO AUDIT 100. NOW, I KNOW YOU'RE BOOK, YOU'RE AT CAPACITY. BUT I KNOW THAT WHEN WE HAD A DISCUSSION, YOU ALSO MENTIONED THAT THERE'S GOT TO BE A TRANSITION PLAN FOR YOU JUST LIKE WHAT WE DID FOR MIKE. THAT'S GOING TO BE COMING UP HERE IN SOMETIME. I DON'T WANT TO PUT A TIME LIMIT ON IT, BUT I THINK IT'S APPROPRIATE FOR US TO DISCUSS ABOUT WHAT DOES THAT LOOK LIKE FROM HIS STAFF PERSPECTIVE. IF THERE'S YEAR AFTER YEAR, YOU'VE DEMONSTRATED THAT YOU GENERATE MORE REVENUE FOR THE CITY THAN YOU EXPEND TO YOUR DEPARTMENT. CURRENTLY THE WAY THAT YOU'RE FUNCTIONING, YOU ARE NOT A BURDEN ON THE GENERAL FUND. IN ADDITION TO THIS ONE THAT WE JUST ADDED, I'D LIKE TO HAVE A DISCUSSION ABOUT INCREASING THE NUMBER OF SHORT TERM RENTAL AUDITS TO 100, PARTICULARLY FOCUSED ON THE 300 THAT HAVE BEEN IDENTIFIED. >> IS THERE A LIMITATION ON THE EXPENDITURE OF HOT TO AUDIT HOT? I BELIEVE THERE IS, ISN'T THERE? >> NO. [03:35:01] >> NO. >> WE PAY FOR THAT. >> YOU REIMBURSED FOR THAT? >> WE ALL, BUT I THINK THERE'S EITHER THEY. >> BY THE PARK BOARD. >> OH, BY THE PARK BOARD, YEAH. >> YEAH, WE GET REIMBURSED FROM THE PARK BOARD, $60,000. >> I SEE. >> PER YEAR AND WE WERE UNSUCCESSFUL IN GETTING THAT RAISED TO INCREASE THESE 300. >> ALL RIGHT. WERE YOU UNSUCCESSFUL IN THAT RAISE? >> PARK BOARD. >> YOU TRYING TO GET THAT RAISED AT THE PARK BOARD. >> WE BASICALLY HAVE INTERIM MOU WITH THEM FOR THIS PURPOSE, AND THAT WAS THE AGREE UPON AMOUNT THAT THEY WERE WILLING TO. >> DO WE NEED TO CHANGE THAT TO ACCOMMODATE IF WE INCREASE THESE HOT AUDITS? >> WE'RE GOING TO INCREASE THEM, MIGHT AS WELL INCREASE THEM. >> PUMP IT UP A LITTLE BIT. >> WE'RE NOT TALKING LIKE DOUBLING IT. >> I DON'T KNOW YOU'RE GOING FROM HOW MANY TO HOW MANY? I DON'T KNOW IF 30 AUDITS BASED ON THE FEE THAT GLENN'S CHARGING WOULD PAY FOR ANOTHER POSITION AND THAT'S WHAT MY CONCERN IS. I JUST DON'T WANT IT TO BECOME A BURDEN. >> I'M ON THE SALES TAX. >> DON'T MESS WITH MY GENERAL. >> EVEN IF YOU'RE TRIPLING THE SALES TAX, YOU SAID WE GET 200K FROM THE SALES TAX. >> FOR ABOUT 15. THAT'S WHAT IT'S AVERAGED IN THE PAST. >> SO WE'RE TRIPLING THAT SO YOU COULD. >> HE'S GOING TO DO HIS BEST. THAT'S THAT WAS MY POINT. I DON'T WANT TO MESS WITH WHERE YOU ARE. >> I'M GOING TO SAY THIS, HE'S THE BEST AT THIS OR NONE THE BEST. BUT WE WORK HARD TO COLLECT HOT MONEY AND AS WE TALKED ABOUT RIGHT NOW, NONE OF THAT IS GOING TO THE BENEFIT. >> NOW WE GET ALL THE HOT FUNDS THAT WE FIND THAT AREN'T COLLECTED, THEY GET TO STAY AT THE CITY. I LIKE THAT IDEA. >> YEAH. WHAT WAS THAT? [INAUDIBLE]. >> THE ONLY THING WE WOULD COLLECT IS, DO WE COLLECT THE PENALTY, RIGHT? >> YES. >> PENALTY GOES DOES NOT HOT? >> THE PENALTY IS NOT HOT BUT THE COLLECTED HOT AND THE INTEREST IS. >> THAT'S USUALLY WHAT IT'S AVERAGED OUT TO IS $60,000 A YEAR IN PENALTIES. WE'RE ABOUT BREAKING EVEN ON THE DEAL. >> WHAT IS THE AMOUNT OF HOT, I KNOW IT'S BEEN SUBSTANTIAL. >> THE FIRST YEAR WAS ABOUT 600,000, LAST YEAR WAS ABOUT 300,000. WE DECREASED THE AMOUNT OF HOT AUDIT. >> IT'LL KEEP GOING DOWN FOR YOU AUDIT. >> HOPEFULLY SO. THAT'S THE WHOLE IDEA. [INAUDIBLE]. >> BEFORE WE LEAVE THE STOP ARE YOU REQUESTING ANOTHER EMPLOYEE? >> I COULD USE ONE. I COULD DEFINITELY USE ONE, BUT IF COUNSEL. >> WELL, IF I'M JUST ADDING. >> IF IT DON'T MATERIALIZE, YOU FUND IT OUT OF THE FUND. I KEEP SAYING THAT, I LOVE GLENN. I'D GIVE YOU FIVE PEOPLE, BUT I'M VERY PROTECTIVE OF THE GENERAL FUND RIGHT NOW. >> WELL, GLENN, WE'RE GOING UP TO INCREASING POSSIBLY THE SHORT TERM AND THE PORT OVER THERE AND THE AUDIT. DO YOU STILL HAVE TIME WITH THE PERSONNEL YOU HAVE TO TAKE ON THESE EXTRAS? >> WITH THE PERSONNEL THAT I HAVE RIGHT NOW, I WOULD NOT BE ABLE TO DO THE PORT TRAVEL OR AN EXTRA 40 HOT TAX WOULD NOT. >> I DON'T KNOW IF I WOULD ASSUME YOU'RE AWARE THAT WE DID AN EXTERNAL AUDIT OF THE PORT LAST YEAR, AS WELL AS THEY HAVE AN EXTERNAL AUDITOR WHO AUDITS. >> YEAH. THERE WERE SPECIFIC. >> YEAH, IT WAS SPECIFIC. >> I GAVE YOU AN AUDIT AS WELL, AND WE HAD ACCESS FOR THAT. >> I WAS JUST SUGGESTING THAT AS A MATTER OF COURSE, AS WE DO ALL OF THESE AUDITS, JUST INCLUDING THAT EVERY TIME WE DO THIS IF WE'VE ALREADY DONE IT THIS YEAR. >> I CAN SAY I HAVE NO SKIN IN THE GAME HERE AT ALL, BUT I DO LIKE THE IDEA OF LOOKING AT BEST PRACTICES ACROSS ALL THREE, YEAH. >> DO AT THE SAME. [OVERLAPPING] >> THAT MAKES A LOT OF SENSE BECAUSE LIKE I SAID, IF YOU'RE FOCUSED ON THAT ONE PARTICULAR ACTIVITY, THEN YOU'RE GOING TO LEARN ABOUT THE PROCESSES THAT ARE ASSOCIATED WITH. >> NOT BECAUSE I THINK THEY'RE DOING IT WRONG, WE MAY BE WRONG. >> THERE'S ALWAYS ROOM FOR IMPROVEMENT TO DOING THE BEST. >> THEN, IF WE KEPT YOUR SHORT TERM RENTALS TO 60, WOULD YOU BE ABLE TO ADD THE TRAVEL OVER AT THE PORT WITH THE PERSONNEL YOU HAVE? >> JUST REMEMBER, WHEN YOU DO THAT, I SAID THIS AGAIN, YOU'RE SHIFTING THE COST BACK TO THE GENERAL FUND. >> NO, NO. I'M TALKING ABOUT IF F HE HAS THE PERSONNEL HE HAS. >> KEEPING IT. [OVERLAPPING] >> KEEP THE WAY IT IS BUT NOT TAKING JUST. >> NOT DOING THE 100. >> HERE'S THE THING, GUYS. WHAT YOU'RE PAYING FOR IS TIME AND IF TIME SLIPS INTO THE NEXT BUDGET YEAR, WELL, THEN YOU'LL ABSORB THAT COST NEXT YEAR, YOU'LL BILL IT. LET'S JUST SEE YOU ASK HIM TO DO 100 HOT AUDITS, AND HE GETS TO 90, YOU'RE GOING TO GET REIMBURSED FOR 90. [03:40:04] >> IS THAT THE MOU WITH THE PARK BOARD IN TERMS OF REIMBURSING GLENN'S OFFICE FOR THE HOT TAX? IS THAT SCALED OR IS IT SET AT 60? >> IT'S SCALED. >> IT'S PRETTY MUCH A NET EVEN. >> PER AUDIT. >> YEAH. >> IF YOU DID 70, IT'S 70,000. >> NO, BECAUSE THEY MAX IT AT 60. >> SCALE MAXED AT 60, WHAT IF WE REMOVE THE CAP TO SCALE IT TO MAKE IT EVEN? >> WELL, IF PARK BOARD APPROVE IT. >> WELL, WE LOOK AT THE INTERLOCK AGREEMENT THAT WE'RE STILL NEGOTIATING RIGHT NOW. >> ALL RIGHT. BUT LET ME SHED SOME LIGHT ON THIS. THE 60,000 DOESN'T COME OUT OF PARK BOARD FUNDS, IT COMES OUT OF REGISTRATION OF SHORT TERM RENTALS. WE COULD INCREASE THAT AND THE REGISTRATION FEE ON HOW THAT MONEY IS UTILIZED IS GOING TO COME TO US TO APPROVE THAT SO WE COULD UP THAT AMOUNT OUT OF THE REGISTRATION FEES IF WE FEEL IT'S APPROPRIATE? >> THAT IS CORRECT. IT WOULDN'T COME OUT OF THE PARK FUNDS BOARD. >> JUST KEEP IN MIND THAT WHEN GLENN AUDITED, CORRECT ME IF I'M WRONG, THE LAST TIME WE SENT YOU TO AUDIT SOMETHING AT THE PORT, THE PORT REIMBURSED AS THAT EXPENSE, CORRECT? >> NO. >> IT DID NOT? THAT'S THE ONLY CONCERN I HAVE. I SAID BUT IF WE SEND GLENN TO THE PORT, THAT'S A NON REIMBURSABLE. >> NO, THE PORT DID NOT AT THAT POINT, BUT THE LATEST AUDIT THAT WE DID THE PORT PAID FOR. >> THAT WAS EXTERNAL, WE PAID AN EXTERNAL PERSON TO DO IT. >> GO OVER THERE. >> WHAT I'M THINKING. >> THE PORT PAID IT. MAYBE THAT'S AN ITEM FOR OUR CHARTER REVISION IN TERMS OF OUR AGREEMENT WITH THE PORT THAT THEY DO THIS. >> THAT WOULD BE WITH OUR LOCAL, I'M GUESSING, RIGHT? >> WELL, IT'S WITH THE PORT, IT'S ALREADY IN THE CHARTER. WE HAVE THE ABILITY TO AUDIT ANYTHING OVER THE PORT, [OVERLAPPING] THE REIMBURSEMENT. >> IS THAT INTERLOCAL? >> WITH THE PARK BOARD, YOU MEAN? >> BOTH BOARD. >> WE DON'T REALLY HAVE A TRUE INTERLOCAL WITH THE PORT. >> WE DON'T HAVE A GENTLEMAN AGREEMENT? >> WELL, WE HAVE A CHARTER. IT'S ALL SPELLED OUT THE CHARTER. WE HAVE A SEPARATE AGREEMENT WITH THE PORT. >> HOW ABOUT THE REIMBURSEMENT OF THE AUDITS. >> WE DON'T HAVE A STANDING AGREEMENT THAT WE KNOW. >> IT'S NOT IN THE CHARTER FOR THE PORT SO THAT WOULD BE SOMETHING THAT YOU COULD DO. >> WE COULD IF COUNSEL DIRECT TO DO SO, I'M HAPPY TO DO THAT. >> I STILL LIKE MY IDEA. >> WHAT WAS YOUR IDEA? >> SHE LOVES HER IDEAS. [LAUGHTER] >> BUT I HAVE THE USE OF THAT HOT TAX FOR THINGS THAT WE'RE TALKING ABOUT THAT ARE ACCEPTABLE. WELL, IF THEY WEREN'T COLLECTING IT TO BEGIN WITH. >> NO, I UNDERSTAND THAT BY STATE LAW THE TAX NEVER MIND. [LAUGHTER] [OVERLAPPING] THERE ARE WAYS THAT WE COULD COVER MORE COSTS. >> LET THE RECORD REFLECT THAT COUNCILWOMAN ROB IS NOT SAYING WE'RE GOING TO VIOLATE STATE LAW. >> THEN SHE LOVES HER IDEAS. [LAUGHTER] >> I'M OKAY IF YOU WANT TO BACK DOWN. WELL, I LIKE THE TARGET OF DOING 100 SHORT-TERM REAL AUDITS BECAUSE YOU'VE IDENTIFIED OVER 300 THAT ARE POTENTIALLY OUT OF COMPLIANCE. I UNDERSTAND WE COULD SET THAT AS A GOAL YOU MIGHT NOT MAKE IT. >> WITH THE EXISTING STAFF. >> THAT'S A GOOD POINT. IF WE PUT IN THERE, WE WOULD LIKE TO HAVE TRAVEL AUDIT AT THE PORT AND HAVE A GO OF 100 SHORT-TERM RENTAL AUDITS IF THEY CAN BE ACCOMPLISHED IN THE YEAR WITH THE CURRENT PERSONNEL YOU HAVE. >> WHO IDENTIFIES THAT THERE'S PERHAPS 300 THAT A ROW, YOU OR THE PARTNER? >> IT'S RANDOM. >> SOMEWHERE THERE COULD BE A LARGER NUMBER. >> POSSIBILITY THERE COULD BE MORE, I DOUBT LESS. >> KEEP IN MIND, YOU'RE AUDITING REGISTERED SHORT-TERM RENTALS. >> IN HOTELS. >> HOTELS, BUT YOU'RE NOT NECESSARILY OUT THERE LOOKING FOR UNREGISTERED SHORT-TERM RENTALS, WHICH IS A WHOLE ANOTHER WRAP. ANOTHER DEAL. THE PARK BOARDS ON THAT WITH THEIR SOFTWARE. >> IS THERE SOFTWARE, DOES THAT I MEAN, THE 5% OF NON-COMPLIANCE? IS THAT JUST PEOPLE THAT HAVE LAPSED? IS THAT PEOPLE THAT PUT A FAKE NUMBER IN? >> ALL I KNOW IS THEY'VE IDENTIFIED WHO THOSE ARE AND THE THESE ARE INDIVIDUALS NOT. >> LET ME GIVE YOU WHAT I THINK IS A GOOD EXAMPLE. I'VE RENT IT IN YOUR SHORT-TERM RENTAL. OUR BROWN OPERATES THIS REALLY NICE SHORT-TERM RENTAL AND I'VE RENTED IT FROM BOB. I SAID, BOB, THIS IS GREAT. I'M GOING TO COME BACK AGAIN. BOB SAYS DON'T CALL VRBO, CALL ME. THAT'S WHAT GLENN'S GOING TO BE LOOKING AT. >> NOW WHAT I'VE NOTICED, BOB DOESN'T HAVE SURE. [03:45:04] >> BUT IS THAT CAPTURED IN THE SYSTEM? I MEAN, BOB WILL PROBABLY KNOW THE ANSWER THAT? I MEAN, IS THAT CAPTURED IN THE SYSTEM? >> THAT'S HOW THEY'RE CAPTURING. IS THEY'RE FINDING THESE LISTINGS IN GALVESTON. >> THEY'RE SCRAPING ALL THE PLATFORMS. >> YOU HAVE A REGISTERED CHURCH OF RENTAL THAT HAS HITS ON VRBO, THEN YOU HAVE BIG GAPS WITH NO RENTALS IN BETWEEN. THOSE WOULD BE TARGETS, I WOULD ASSUME BECAUSE THOSE MIGHT BE PEOPLE THAT ARE MOVING TO A CASH BASIS WITH THEIR CUSTOMERS. >> OR THEY'RE USING IT THEMSELVES. >> YES, EXACTLY. >> IN THE WAY I UNDERSTAND IT, ALEX, YEAH. THE WAY I UNDERSTAND IT, THEY'RE SCRAPING FACEBOOK, CRAIG'S LIST. THEY'RE SCRAPING ALL OF THEM TO SEE IF THERE'S SHORT-TERM RENTALS OUT THERE. >> IS GOOD AT THIS. I STILL REMEMBER WHEN GLENN LIKE 150 AND BIKE RAIL DID SEE IF THEY WERE PAYING SALES TAX. >> A LOT OF TURKEY LATER. >> ALL RIGHT. MARY, THAT'S ALL I HAD. >> BEFORE WE LEAVE THIS, I WANT TO BE CLEAR WHAT WE'RE DOING HERE. WE'RE ASKING GLENN TO ADD THE PORT TO THE TRAVEL AND TRAINING EXPENDURE POLICIES AND PROCEDURES, AND WE'RE ASKING HIM TO SET A GOAL OF 100 SHORT-TERM RENTALS, IF POSSIBLE, WITH THE PERSONNEL THAT HE CURRENTLY HAS, IS THAT CORRECT? >> ON THE PORT TRAVEL, I MEAN, WERE BECAUSE OF THE SITUATION WITH THE PARK BOARD WE'RE GOING THROUGH IT LINE ITEM BY LINE ITEM. WE'RE CHECKING EVERYTHING. IS THIS SOMETHING THAT YOU WOULD WANT WITH THE CITY OR THE PORT TRAVEL AS FAR AS LOOKING AT THEIR TRAVEL, OR COULD WE POSSIBLY SAMPLE TO MAKE SURE WE FINISH THOSE AUDITS? >> NO TO THE EXTENT OF THE PARK BOARD AND CITY AUDITS RELATED THE PARK TRAVEL. >> PARK BOARD BECAUSE OF THE SITUATION. >> HE'S GOING TO BRING THAT IN SEPTEMBER, AREN'T YOU? >> WE'RE DOING 100%. >> WE'RE SCOURING IT. SO IT'S 100% AND FOR THE CITY? >> WE PLAN ON DOING 100%, BUT WE COULD SCALE THAT DOWN. IF WE INCREASE THE SHORT-TERM RENTALS, WE COULD SCALE THAT DOWN AND POSSIBLY SCALE THE PORT TRAVEL DOWN. TO SOME SAMPLING. LARGE ITEMS. >> THAT WAY IN THE FUTURE, IF THERE IS IDENTIFIED COMPLIANCE OR ISSUES, YOU CAN PUT IT ON THE NEXT ONE. >> THAT'S ACTUALLY GOOD THAT'S YOU DO AUDIT SURVEYS OR WHEN YOU DO INSURANCE WORK, THAT'S A GOOD WAY TO DO IT. >> YEAH. IF THERE'S NOT SAMPLING IS FINE BECAUSE THAT'S PARTICULARLY RELATED TO LARGE EXPENDITURES BECAUSE THAT WAY, YOU'LL STILL GET AN UNDERSTANDING OF THEIR POLICIES, PROCEDURES RELATED TO THAT PARTICULAR ITEM. >> MAYBE IF WE COULD PROCEED THIS YEAR WITH A SAMPLE, AND CONCURRENTLY BEGIN TO WORK WITH HAVING THE PORT PAY FOR THE FUTURE AUDITS. WE CAN MOVE TO 100% THEN. >> ESPECIALLY IF SOMETHING'S IDENTIFIED, I WOULD WORK. >> SAME SETTING. >> ACTUALLY AT ANY GIVEN POINT IN TIME BY ORGANIZATION, LYNN CAN SPONTANEOUSLY COMBUST FIND SOMETHING THAT'S JUST TOTALLY OUT OF THE ORDINARY. >> SO WE'LL DO A SAMPLE OF THE PORT AND THE SITTING, AND THE CITY LARGE EXPENDITURES, WHATEVER YOU DEFINE WITHIN YOUR PURVIEW. THE GOAL OF THAT IS SO THAT YOU CAN HOPEFULLY ACHIEVE THE TARGET SOMEWHERE 16-100 SHORT-TERM RENTALS. AS MANY AS YOU CAN. >> ARE YOU CLEAR GLENN NOW WHERE WE COUNSEL'S INPUT ON THIS? >> YES, SIR. >> GLENN, WOULD YOU REPEAT IT BACK TO US SO THAT WE MAKE SURE EVERYTHING IS OKAY? >> WE'RE GOING TO TAKE THIS DRAFT AUDIT PLAN AND WE ARE GOING TO MODIFY IT. WE'RE GOING TO TRY TO PUT IN 100 SHORT-TERM RENTALS, INSTEAD OF 60. WE'RE GOING TO REDUCE THE CITY'S TRAVEL AND TRAINING EXPENDITURE AUDIT TO DO SAMPLING AND WE'RE GOING TO STILL KEEP THE PARK BOARDS AT 100%. WE'RE GOING TO INCLUDE THE PORT TRAVEL AND TRAINING, BUT WE'RE GOING TO DO IT ON A SAMPLING BASIS. >> YES, SIR. VERY GOOD. >> THANK YOU. >> THANK YOU VERY MUCH. APPRECIATE IT. >> THANK YOU. >> THANK YOU. >> THANK YOU. >> HI. HOW ARE YOU? NICE TO SEE YOU. WHAT IS HER NAME AGAIN? >> MARIA. >> BEAUTIFUL NAME. >> AT THE COMPUTER. I HOPE SHE DIDN'T GET MAD AT US, HER FINGERS ARE ABOUT TO FALL ON. THANK YOU VERY MUCH. [03:50:02] >> THANK YOU. ITEM 3D, PLEASE. [3.D. Discussion of Event Funding Recommendations (A. Lynch - 30 min)] >> ITEM 3D. DISCUSSION OF EVENT FUNDING RECOMMENDATIONS. >> WE HAVE ANTOINETTE LYNCH WITH US, AND SHE'S GOING TO GIVE US SOME THOUGHTS ABOUT THE HOT TAX AND WHERE WE ARE AND START ANSWERING QUESTIONS. ANTOINETTE, WOULD YOU INTRODUCE YOURSELF TO THE CAMERAS? WELL TO THE COMMUNITY, WHO YOU ARE AND WHAT YOU REPRESENT. >> I FEEL A LITTLE BIT. I'M ANTOINETTE HARRY LYNCH, I'M THE ARTS AND CULTURE COORDINATOR FOR THE CITY. I THINK THIS WEEK WILL MARK ONE YEAR FOR ME BEING HERE AT THE CITY AND AN ADVENTURE. EVERY DAY. YOU WERE JUST SO EXCITED TO ME. I DON'T KNOW IF MARY BROWN IF YOU WANTED TO LEAVE THIS OFF. SO I'VE BEEN WORKING ON A STATE OF THE ARTS REPORT TO BRING TO YOU ALL. TODAY WE'RE REALLY GOING TO DRILL DOWN JUST ON EVENTS. BUT WE'RE GOING TO GIVE A LITTLE SHOWING OF WHAT WE'RE DOING FOR STATE OF THE ARTS FUNDING AS WELL. GREAT. THIS IS ACTUALLY A PRE-COVID SLIDE. I'VE BEEN TOUTING THIS AROUND FOR A LONG TIME. THIS IS WHY WE SPEND ARTS FUNDING, WHY THE STATE RECOGNIZES IT AS AN APPROPRIATE SPEND FOR HOT TAX. BECAUSE WE'RE TRYING TO GET THAT CULTURAL TRAVELER. WHEN YOU ATTRACT A CULTURAL TRAVELER, WHEN THEY HAVE A TICKET TO SOMETHING WHEN THEY'RE COMING TO SEE SOMETHING IN PARTICULAR, THEY ARE MORE LIKELY TO BRING SOMEONE WITH THEM, FIRST OF ALL, THEY BRING THEIR FAMILY OR THEY BRING A DATE. THEN THEY'RE GOING TO STAY IN A DESTINATION LONGER BECAUSE THEY PLANNED THINGS TO BE HERE. YOUR CULTURAL TRAVELER SPENDS ON AVERAGE MORE TIME AND DESTINATION AND MORE MONEY. THAT IS WHY THE STATE SAYS, YES, WE SHOULD SEND SOME OF THAT MONEY BACK TO HELP DEVELOP ARTS AND KEEP THAT GOING. SAME THING, BUT THIS IS PARTICULAR TO GALVESTON. SO WHERE IT COMES OUT IN THAT CYCLE WHERE YOU MAKE YOUR COMMUNITY MORE VIBRANT ARTISTICALLY AND YOU'RE HAVING MORE EVENTS AND YOU'RE DOING MORE AMAZING THINGS AND YOU'LL BRING MORE PEOPLE AND THAT WILL PROVIDE MORE HOT TECHS AND IT'S A CYCLE. PARTICULAR TO EVENTS, YOU'LL SEE THE OVERLAY. THE PARK BOARD USES TOURISM DEVELOPMENT TO SPEND ON EVENTS, AND WE SPEND IT OUT OF OUR ARTS AND HISTORIC PRESERVATION ADVISORY AND CULTURAL ARTS. BOTH ARE OBVIOUSLY VERY ACCURATE PLACES TO SPEND MONEY ON EVENTS. THERE'S AN OVERLAY, WHICH YOU'LL SEE IN THE NEXT SLIDE. IN THIS ONE, I JUST WANTED TO SHOW THE VERY GENERIC OF IT. >> A QUESTION THERE. BECAUSE I'VE BEEN ASKING A NUMBER OF PEOPLE THIS QUESTION AND NO ONE HAS BEEN ABLE TO ANSWER IT. SO THE PARK BOARD DOESN'T DO EVENTS ANYMORE. BECAUSE I HEARD THEM SAY THEY DON'T DO EVENTS. THE CITY DOES EVENTS. >> THAT IS A PARK BOARD QUESTION. >> IT DEPENDS ON WHAT YOUR DEFINITION OF DOING EVENTS IS. THEY FUND EVENTS. THEY DON'T PUT ON EVENTS. >> SOUND LIKE THE NAVIGATION DISTRICT THAT BRIDGES. >> BUT THEY FUND EVENTS. >> THEY FUND EVENTS. THEY DO FUND THINGS IN A WAY THAT WE DON'T. THEY DO A GREAT INCUBATOR FUNDING THAT THEY'VE HAD FOR A LONG TIME, WHICH GIVES A THREE-YEAR RAMP DOWN FOR A NEW EVENT, AND IT IS SPECIFIC TO MARKETING. YOU CAN IF THEY ARE AWARDED THAT FUNDING, THEY GET UP TO $10,000 FOR THE FIRST YEAR, AND THEN IT DECLINES YEAR 2 AND YEAR 3, AND THEY GET THAT AFTER THE EVENT AND THEY GET THAT FOR A REIMBURSEMENT FOR THEIR MARKETING EFFORTS. IT'S REALLY JUST TO SUPPORT NEW EVENTS COMING TO THE END. IT'S GREAT. >> SAY THEY THE PARK BOARD. SO WE REIMBURSE THE PARK BOARD. >> WE DON'T. NO. THIS IS ALL TOURS AND DEVELOPMENT. WONDERFUL SPENDING. >> THE SPENDING A QUESTION. DOES YOUR OFFICE COORDINATE WITH THE PARK BOARD ON THEIR THE ART EVENTS AND A FUND, FOR INSTANCE, LIKE THAT WASH ASHORE INSTALLATION ALL ACROSS THE ISLAND? I THINK IT SHOULD. >> ALL RIGHT. SO WE [03:55:01] FUND OUT OF CULTURAL ARTS COMMISSION AND ARTS AND HISTORIC PRESERVATION ADVISORY. ARTS AND HISTORIC MARY BRANHAM IS HERE. SHE'S THE CHAIR OF ARTS AND HISTORY. IT GETS AT SIX-EIGHTHS OF THE PENNY, 5% GOING INTO A RESERVE, AND THEY FUND NONPROFIT ORGANIZATIONS MISSION IS, ARTS HISTORIC PRESERVATION. THERE ARE CURRENTLY TWO-YEAR AWARDS. CAN'T BE MORE THAN 20% OF THEIR OPERATING BUDGET. THEN THE CULTURAL ARTS COMMISSION, WHICH RECEIVES A FLAT AMOUNT OUT OF ARTS AND HISTORIC PRESERVATION OF $250,000 ANNUALLY AND IT TECHNICALLY CAN FUND EVENTS AS WELL AND HAS. IN FACT, WE DID THIS PAST YEAR, WE DID THIRD ISLAND MUSIC FESTIVAL. THIS IS WHY ARE WE LOOKING AT ARTS AND EVENTS. BECAUSE THERE IS OVERLAP IN WHAT WE DO. PLEASE DON'T GET ME WRONG. I'M THRILLED THAT THE PARK BOARD GIVES MONEY TO ARTS AND EVENTS. I WOULD LOVE FOR THERE TO BE A CONVERSATION, A MORE IN-DEPTH CONVERSATION TO WHERE PEOPLE CAN APPLY IN ONE PLACE, AND THERE IS A PLAN WHERE IT'S YEAR 1, THIS IS WHAT YOU QUALIFY FOR. OUT OF THESE THINGS. BUT IT'S ALL DECISION WHETHER DOUBLE DIPPING IS SOMETHING THAT YOU WANT TO BE CONCERNED WITH RIGHT NOW, AS I'VE ILLUSTRATED, EVENTS, BECAUSE THERE IS NOT ANYTHING THAT SAYS IN ANY ONE OF OUR EVENTS, EVEN AT THE CITY, THE TWO FUNDINGS THAT WE HAVE, NOTHING SAYS THAT THEY CAN'T APPLY TO BOTH FOR THE SAME THING. I DON'T KNOW IF THAT'S A PROBLEM OR NOT. I'M JUST SAYING THAT THAT'S HOW IT IS. YOU COULD POTENTIALLY QUADRUPLE DIP OUT OF HOT TAX FOR THE SAME EVENT IN ANY YEAR. >> WE SHOULD TRY THAT ON THE CITY. >> THERE ARE SOME EVENTS THAT HAVE BEEN DOING THAT. >> I DON'T BELIEVE ANYBODY HAS EVER DONE IT. I'M JUST SAYING IF WE DON'T HAVE THE CONVERSATION AND DECIDE IF THAT'S SOMETHING THAT WE WANT TO DO, IF WE WANT TO RAISE THE 20% TO HIRE AND INSIST ON NOT DOUBLE DIPPING OUT OF THERE'S ONE MILLION WAYS TO SLICE IT. THIS IS JUST I'M JUST BRINGING TO YOU THE CURRENT STATE OF AFFAIRS. >> THANK YOU. >> GALVESTON ON A NATIONAL LEVEL IS ACTUALLY HARD TO FIND OUT. IT'S GOING TO SHOW YOU SCROLL DOWN. I DON'T KNOW WHY THEY'RE A LITTLE BIT BIGGER THAN THEY SHOULD BE. A LITTLE BIT MORE. WE'RE BETWEEN THE 80TH AND 89TH PERCENTILE IN WHAT THEY CALL ARTS VIBRANCY. THIS IS FROM SMU DATA ARTS. THEY ARE THE LARGEST ORGANIZATION THAT PULLS DATA FROM ARTS AND CULTURE ORGANIZATIONS. WHEN I SPOKE TO THEM, THEY DON'T HAVE A LOT OF OUR ORGANIZATIONS IN GALVESTON THAT ARE ACTUALLY REGISTERED THROUGH SMU DATA ART. THEY COULDN'T REALLY DRILL DOWN FOR ME AS MUCH AS I WOULD LIKE. THE REASONING FOR THAT IS SMU DATA ARTS, WHAT I ASSUMED WOULD HAVE SO MANY OF OUR ORGANIZATIONS ON IT BECAUSE ANY ORGANIZATION THAT APPLIES TO THE NEA FOR FUNDING TO THE NEH, THEY GO THROUGH SMU DATA ARTS. IF THE CITY WANTED TO PUT A LITTLE MONEY FROM ARTS INTO THE DEVELOPMENT AND DATA, WE COULD POTENTIALLY FOR OUR REPORTING FOR OUR CULTURAL ARTS COMMISSION OR FOR IN PARTICULAR ARTS AND HISTORIC PRESERVATION, WE CAN ASK THAT THEY GO THROUGH SMU DATA ART. IT WOULD BE A COST TO US. BUT WE COULD THEN AT ANY TIME, PULL SOME VERY DRILLED DOWN DATA TO SAY, OKAY, HOW ARE WE FUNDING ORGANIZATIONS NEED IN PARTICULAR AND BE ABLE TO ALMOST BUDGET ARTS AND HISTORIC PRESERVATION A YEAR OUT ACCORDING TO TRENDS IN ESTIMATE DATA ARTS BECAUSE WE COULD REALLY HAVE THOSE COMPS FOR OUR ORGANIZATIONS AT COUNTY, STATE, AND NATIONAL LEVEL. >> DO YOU HAVE AN ESTIMATED COST ON WHAT THAT IS? >> SO IT VARIES. YOU CAN DO A ONE-TIME COST OF A BIG DRILL DOWN WHERE THEY WOULD HAVE TO GET ALL OF THIS INFORMATION FROM EVERY ORGANIZATION. IF WE PAID FOR IT TO BE ANNUAL, A MINIMUM THREE-YEAR CONTRACT WOULD BE, I THINK, LIKE, DON'T POINT ME BUT I WANT TO SAY IT WAS LIKE 15,000 A YEAR. BUT BEAR IN MIND, IT WOULD BE ANYBODY THAT APPLIED AND THEN SOME OF THEM ALREADY DO. [04:00:03] IT WOULDN'T BE A SHIFT FOR THEM, THEY'D BE THRILLED, LIKE ONCE THEY WERE, YOU KNOW, YOU MEETING ALL THE CRITERIA, YOU'RE ALREADY DONE. >> BUT YOU'VE IDENTIFIED A GAP BECAUSE YOU SAID THERE A NUMBER OF ORGANIZATIONS. >> THERE ARE A NUMBER OF ORGANIZATIONS. PART OF THAT PROBLEM AS WELL, IS IT LIMITS US WHERE WE'RE ALWAYS INCLUDED IN THE GREATER HOUSTON AREA. WE REALLY NEED TO BREAK OUT OF THAT GREATER HOUSTON AREA TO START EVENTUALLY, WHAT WE NEED TO DO IS CREATE AN ARTS UMBRELLA THAT CAN REACH OUT FOR MORE FUNDING HERE, AND WE CAN REALLY ONLY DO THAT IF WE GET OUT OF THAT SHADOW OF HOUSTON. >> QUESTION, YOU STILL GOT MORE TO GO, BUT YOU JUST MENTIONED AN ARTS UMBRELLA BECAUSE YOUR PREVIOUS SLIDE, WE WERE ALL OVER THE PLACE. YOU'VE GOT THIS GROUP DOING THIS, YOU'VE GOT THIS GROUP DOING THIS. THIS GROUP IS FUNDED BY THIS. THEY CAN APPLY TO DIFFERENT AREAS FOR THE SAME THING. I LOVE THE FACT THAT WE'RE USING HOT FROM THE ARTS. THAT IS ABSOLUTELY IMPERATIVE. BUT YOU'VE IDENTIFIED DATA GAPS FROM PEOPLE THAT YOU CAN'T GET INFORMATION FROM TO SUPPORT FURTHER GRANTS. YOU'VE GOT POTENTIAL FOR OVERLAP BECAUSE WE'VE CREATED THESE LITTLE GROUPS PIECE BY PIECE. WHAT YOU JUST SAID, I THINK WAS IMPORTANT, YOU JUST SAID THE IDEA OF CREATING AN ARTS UMBRELLA. >> OUR MASTER PLAN THAT PREVIOUS COUNCIL ADOPTED UNANIMOUSLY, I WANT TO THROW THAT OUT THERE. THE PLAN WAS TO CREATE AN ART UMBRELLA. NOW WHAT THAT LOOKED LIKE COULDN'T BE DECIDED BY THE END OF THE NEA GRANT THAT WE RECEIVED TO DO THAT MASTER PLANNING. AT THE END, THEY SAID, WHAT NEEDS TO BE DONE AS A CITIES OF COMPARISON LOOK AND THEN DRILL DOWN INTO SOME CITIES AND SEE HOW THEY HAVE THEIR ARTS UMBRELLA SET UP, IS THAT A BRANCH OF THE CITY, LIKE AN ADDITIONAL BRANCH OF THE CITY THAT CAN SOMEHOW BE QUASI GOVERNMENTAL, BUT ALSO RECEIVE PRIVATE ENDOWMENTS BECAUSE THAT WOULD BE IMPORTANT TOO BECAUSE HOT TAX IS VERY SPECIFIC HOW IT CAN BE SPENT VERSUS PRIVATE ENDOWMENTS. THERE ARE A LOT OF ORGANIZATIONS OUT THERE THAT WOULD LOVE TO DO AN ENDOWMENT TO SOMETHING THAT WOULD HELP A GREATER CAUSE FOR THE ARTS. BUT THERE'S NOT ONE ENTITY THAT THEY THEY REALLY FEEL LIKE WOULD BE A PUBLIC OPEN PROCESS. >> IN MY OPINION, YOU NEED INTERNET TO BRING BACK TO US A PLAN FOR THIS. >> TO GET THAT DATA YOU'RE TALKING ABOUT, TO CREATE THAT UMBRELLA, IF YOU HAD ACCESS TO THE SMU DATA, THAT WOULD HELP, RIGHT? >> YES. SMUS ACTUALLY, I'VE BEEN SPEAKING TO THEM JUST AS A COURTESY. OVER THE LAST YEAR, I HAVE MET WITH EVERYBODY UNDER THE SUN TO GET CITIES OF RECOMMENDATION. WHERE DO YOU FEEL LIKE GALVESTON IS COMPARABLE TO? I STARTED WITH THE PARK BOARD AND I SAID IN THE LAST HOWEVER MANY YEARS, WHAT CITIES HAVE YOU DRAWN COMPARISONS TO IN YOUR REPORTING? ANYWHERE FROM THE GRAY RESEARCH STUDY THEY DID TO CURRENT, THEY LISTED ALL THE CITIES. FROM THERE, WE PULLED ASHVILLE, CHARLESTON, NEW ORLEANS. I HAVE A VERY MASSIVE SPREADSHEET. GOD BLESS OUR INTERN THAT [LAUGHTER] HELPED ME DO A WHOLE LOT OF THAT DATA ENTRY. BUT I HAVE IT LISTED LIKE WHERE ALL THE RECOMMENDATIONS CAME FROM, THE REASON THEY GOT ADDED TO THE LIST, AND THEN OF THE REASONS WHY, WHEN I CALLED IT DOWN TO FIVE CITIES, THE REASONS WHY. IF ANY OF YOU WERE EVER REALLY INTERESTED IN LOOKING AT THAT. AT FIRST, I STARTED WITH WHAT ARE OUR BIGGEST CONTRIBUTING FACTORS AND THINGS FOR ART LIKE HOW MUCH LAND IS AVAILABLE FOR ART, WHAT DOES OUR POPULATION? WHAT DOES OUR TOURISM DRAW? IF YOU LOOK AT THE LAST FIVE CITIES, THERE'S NOT A TEXAS CITY ON THERE. >> CAN YOU DESCRIBE THE DIFFERENCE BETWEEN THOSE THREE COLUMNS, THERE ARE CITIES LISTED ON MULTIPLE. >> THERE WERE 20 CITIES THAT I GOT HANDED TO ME FROM RECOMMENDATIONS FROM ALL OVER. FIVE OF THEM [OVERLAPPING] >> LET ME INTERRUPT FOR SECONDS, BUT JUST TO REFLECT ON THE RECORD, THE MAYOR HAD TO LEAVE TEMPORARILY AND WILL BE BACK SHORTLY. GO AHEAD. SORRY. >> THERE WERE FIVE CITIES OR ROUGHLY FIVE CITIES THAT JUST WEREN'T REMOTELY COMPARABLE. [04:05:03] I STARTED REALLY LOOKING AT 15. OUT OF THE 15, WHERE I STARTED THE IMMEDIATE CUTS WHERE WE TOOK THE PERCENTAGE FROM POPULATION TO TOURISM. HOW MANY VISITORS VERSUS RESIDENTS DID WE HAVE AND CALLED IT DOWN TO 10. FROM 10, I REALLY GOT STUCK AT ABOUT SEVEN OR EIGHT BECAUSE I REALLY LOVED ABOUT SEVEN OR EIGHT OF THEM AND THAT'S WHERE THE TEXAS CITIES WENT OUT THE WINDOW. THE LAST FIVE CITIES ARE ALSO SMU DATA ARTS DRIVEN. WHAT YOU'LL SEE ON THERE IS VERY SEASONAL. I TRIED TO PICK SOME THAT HAD DIFFERENT COMPARISON POINTS TO THEM. JACKSON HOLE, I FOUND INTERESTING BECAUSE IT HAS ONE AIRPORT. IT'S THE ONLY AIRPORT IN THE COUNTRY IN A NATIONAL PARK. BUT IT'S ACTUALLY HALF THE SIZE OF SHOALS. ONE AIRPORT. >> IT'S NICE. JACKSONVILLE IS PRETTY COOL. I SEE THE COMPARISON. >> THEY ARE DRIVE MARKET, ABSOLUTELY. >> LOW RESIDENT, HIGH SEASONAL TOURISM. >> HIGH SEASONAL. NEW ORLEANS, OF COURSE, IS BECAUSE I WANTED AT LEAST ONE, IF NOT TWO, SO WE HAVE NEW ORLEANS, AND CHARLESTON ON THERE THAT WERE PORT CITIES THAT WERE OLDER, SIMILAR IN AGE TO US. SIMILAR OBVIOUSLY NOT IN SIZE, BUT WHAT THEY ARE IS SIMILAR IN POPULATION TO THE TOURIST. THEN YOU'VE GOT TWO COLORADO CITIES, BRECKENRIDGE AND GLENWOOD SPRINGS, WHICH SEEMS SUPER RANDOM. GLENWOOD SPRINGS AND JACKSON HOLE, WHEN YOU LOOK AT ARTS VIBRANCY, THEY REALLY GO, POPULATION WISE. THEY SAY, IF YOU'RE UNDER 100,000, YOU'RE CONSIDERED A SMALL CITY. WE ARE OBVIOUSLY CONSIDERED A SMALL CITY. JACKSON HOLE AND GLENWOOD SPRINGS ARE IN THE TOP FIVE FOR ARTS VIBRANCY OF SMALL CITIES. EVEN THOUGH GLENWOOD SPRINGS IS MUCH SMALLER, BECAUSE JACKSON HOLE IS JUST UNDER 100,000 OF GLENWOOD SPRINGS IS LIKE, I DON'T REMEMBER. IT'S LISTED ON THE NEXT SLIDE. BUT THEY'RE STILL IN THAT SAME THING. THIS IS A VERY SMALL SNIPPET OF A VERY LARGE SPREAD SHEET, BUT THESE ARE THE THINGS I WAS LOOKING AT. >> [INAUDIBLE] . >> YOU CAN SEE WHERE I'VE GOT THE VISITATION LISTED, WHICH IS APPROXIMATELY HOWEVER MANY TIMES THE POPULATION. THAT'S HOW I'VE ARRIVED AT THOSE CITIES. OF COURSE, I WELCOME COUNCIL INPUT, IF YOU WANT ME TO GO IN A DIFFERENT DIRECTION. I WILL SHOW YOU THE BIG SPREADSHEET, BUT THIS IS HOW WE GOT HERE. >> IT WOULD REALLY BE INTERESTING IS TO PUT GALVESTON ON THAT SPREADSHEET RIGHT THERE. >> GOOD POINT. WE SHOULD HAVE DONE. THAT'S A REALLY GOOD POINT. I CAN CERTAINLY DO THAT AND PROVIDE THAT TO. IT IS ON THE SPREADSHEET, TOO. I JUST CUT IT OFF. >> ANYBODY ELSE HAVE ANY QUESTIONS? >> I DO. COULD WE GET THIS PRESENTATION SENT TO US? >> ABSOLUTELY. >> AFTER YOU HAVE A CHANCE TO PUT GALVESTON BACK IN THAT SPREADSHEET? >> SURE. WHAT I'LL DO IS I'LL JUST SEND YOU A LINK SO YOU CAN SEE THE ENTIRE THING. BECAUSE I'VE COLLAPSED SOME OF THE THINGS THAT I QUIT LOOKING AT. YOU CAN REALLY GO CRAZY. >> IF WE DON'T WANT THAT FOR SURE. THERE'S SO MUCH DATA HERE ABOUT TOURISM RELATED DATA. I ASSUME LIKE YOU SAID EARLIER, THAT YOU DO COLLABORATE WITH THE PARK BOARD ON THAT VISITATION. >> WELL, TO THE PARK BOARDS ABSOLUTE CREDIT, THEY'VE BEEN DOING THESE THINGS WITHOUT AN UMBRELLA. WE ALL HAVE. WE HAVE NEVER HAD THIS ORGANIZATION AND WE STILL DON'T. THEY'RE STILL DOING THINGS TO THE BEST OF THEIR ABILITY AND DOING IT VERY WELL. THAT'S NOT FOR ME TO SAY. WHEN WE HAVE THAT IN PLACE, HOWEVER, YOU'LL IDENTIFY AS SETTING THAT UP. I'LL COME BACK AND SAY THIS IS EXACTLY HOW THESE CITIES DO IT BECAUSE SOME OF THEM ARE VASTLY DIFFERENT IN THE WAY THAT THEY FUND THEIR ARTS, WHETHER OR NOT IT'S GOVERNMENTALLY RUN, WHETHER IT'S PRIVATELY RUN, WHETHER THEY DO GIVE GRANTS, WHETHER THEIR GRANTS ARE VERY SMALL, THEIR ARTIST GRANTS ARE USUALLY VERY SMALL, WHERE WE GIVE VERY LARGE ARTIST GRANTS. ALL VERY DIFFERENT AND OF COURSE, BUSKING BECAUSE THAT'S ANOTHER THING I'M BRINGING BACK TO ALL OF YOU. ALL OF THE CITIES ALSO HAVE THEIR BUSKING POLICIES IN THAT. [04:10:02] >> IT SOUNDS LIKE THIS IS AN INTERIM REPORT FOR US AND YOU'LL BE COMING BACK TO US WITH A FINAL REPORT RELATED TO THE DATA ASSOCIATED WITH THESE FIVE CITIES. BUT THEN WILL YOU ALSO BE BRINGING, LIKE THE MAYOR MENTIONED AN ANALYSIS OR A RECOMMENDATION ON WHAT A OVERARCHING ARTS UMBRELLA, AS YOU SAY, MIGHT LOOK LIKE FOR THE CITY? >> YES. THIS WAS ME JUST VERY HIGH LEVEL SAYING THERE'S A WHOLE LOT OF WORK BEHIND WHAT YOU SEE HERE. THERE'S A WHOLE LOT THAT NEEDS TO BE DONE. I DON'T WANT TO GO UNLESS YOU ALL SAY THAT YES, THIS IS WHAT WE WANT YOU TO BRING BACK TO US. A LITTLE DIRECTION FROM COUNCIL IS WHAT I'M LOOKING FOR TO MAKE SURE I'M NOT GOING IN THE WRONG DIRECTION AT THIS POINT. >> THE TWO COMMITTEES WHO RECEIVED THE GRANTS, WILL YOU GIVE US A LIST OF EVENTS OR HOW ARE THOSE EVENTS, DO THEY HAVE TO BE SPECIFIC EVENTS TO APPLY EACH OF THESE FOR A GRANT OR? >> THE WAY WE DO FUNDING, REAMING THE TWO AT THE CITY? >> YEAH. THESE TWO COMMITTEES. >> THEY'RE DONE VERY DIFFERENTLY. CULTURAL ARTS COMMISSION IS AN OPEN CALL TO ARTISTS ONCE A YEAR, CURRENTLY, AND IT'S SPECIFICALLY TO ARTISTS. IT'S NOT TO ORGANIZATIONS AND COLLECTIVES OF ARTISTS. WE'VE HAD A FEW BAND TOGETHER AND PRESENT A FESTIVAL IDEA OR WE DID FUND A MUSIC FESTIVAL, WHICH WAS THE COLLECTIVE OF ARTISTS, THE THIRD ISLAND. BUT THAT'S ONCE A YEAR. >> EXPLAIN ARTIST BECAUSE YOU JUST SAID A FESTIVAL. >> THEY HAD DIFFERENT ARTISTS. THEY HAD PAINTERS COME OUT. IT WAS PAYING THE ARTISTS FOR THEIR TIME. THEY BASICALLY RAN THE FESTIVAL AND THEY PAID THEIR MUSICIANS. >> THE MUSICIANS ARE FUNDED THE EVENT? >> THEY DID THROUGH THROUGH THAT PARTICULAR EVENT. NOW, I DON'T KNOW IF Y'ALL REMEMBER. I CAME BACK TO COUNCIL AND SAID, I DON'T KNOW THAT THIS IS EXACTLY HOW YOU'LL WANT TO DO THIS, BUT WE DEFINITELY AREN'T MATCHING CONTRACTS. WE AMENDED THAT CONTRACT TO MAKE SURE THAT HAPPENED. THERE'S NOT AN ISSUE WITH THAT FOR THE FUNDING FOR THIS HERE. NEXT COUNCIL, I'M BRINGING YOU THE TWO RECOMMENDATIONS FOR FUNDING FROM THE CAC, WHICH ONE IS A VISUAL ARTIST, AND ONE IS THE MUSIC PROGRAM. >> SHARON, THEY PUT A CALL OUT EVERY YEAR FOR APPLICATIONS FOR BEING FUNDED FOR ART PROJECTS. IT'S ALL FORMS OF ART, BE IT PERFORMANCE ART. IT CAN BE SCULPTING PAINTING, MURALS, ANYTHING. >> THEN THE SECOND COMMITTEE, THE ARTS HISTORY PRESERVATION BOARD. IT'S ALSO OPENED ONCE A YEAR. WELL, IT'S FUNDED FOR EVERY TWO YEARS, EXCUSE ME. EVERY TWO YEARS. IT'S SPECIFIC TO NONPROFIT ORGANIZATIONS. >> THEY WILL PUT THEIR CALL OUT FOR APPLICATIONS. WE HAVE THE CHAIRPERSON OF ARTS AND HISTORY, MARY BRANHAM HERE. MARY, WHEN DO YOUR APPLICATIONS GO OUT ON ARTS AND HISTORY? >> THE SPEAKER IS HERE. >> I HAVE A LOUD VOICE. [LAUGHTER] [BACKGROUND] >> WE NEED TO HAVE YOU ON CAMERA TOO. [LAUGHTER] >> APPLICATIONS ARE DUE BY MARCH 15 OF 2025. REALLY, WE WILL SEND OUT A NOTICE BY, I WOULD SAY, DECEMBER TO ADVISE, BUT THROUGH MEDIA THROUGH THE CITY, ETC. >> I WANT TO CLARIFY TO I DON'T KNOW YOU MAY HAVE MENTIONED WE OUT FOR JUNE T. FOR JUNE T FUNDING, IF YOU APPLY FOR ARTS AND HISTORY, YOU CAN APPLY WITH THIS ROUND OF APPLICATIONS, BUT THAT WOULD BE FOR '26 AND '27. FOR 25, ALL JUNE T FUNDING GOES TO THE PARK BOARD. IS THAT RIGHT, ANTOINETTE? >> THAT'S WHAT I'VE BEEN TOLD. >> YES, THAT'S RIGHT. >> YOU'VE BEEN TOLD BY? >> JUST FROM CONVERSATIONS, WE WANTED TO MAKE SURE THAT BECAUSE THE PARK BOARD, I GUESS HAD TAKEN IT OUT OF THEIR BUDGET. >> THEY HAVE HAD ON THEIR AGENDA, BOB, DID THEY PASS THAT THIS LAST TUESDAY TO AMEND THEIR BUDGET? THEY'VE AMENDED THEIR BUDGET TO PUT EXTRA MONEY ALLOCATED FOR JUNE 10 FOR THE 25TH FOR 2025 JUNETEENTH CELEBRATION. >> THERE WAS A GAP BETWEEN BEING ABLE TO MOVE THOSE EVENTS OVER TO ARTS AND HISTORY PRESERVATION. [04:15:04] WE DIDN'T WANT THEM TO HAVE A GAP. WHICH IS PART OF THAT CONVERSATION, LIKE WE BOTH DO FUNDING. HOW DO WE MAKE SURE THAT THERE'S NOT EITHER A GAP THAT ORGANIZATIONS CAN FALL INTO OR THAT IF UNLESS YOU WANTED TO, THE POTENTIAL FOR THE DOUBLE DIPPING ISN'T THERE? >> THE NONPROFIT REQUIREMENT IS NOT ON THE ARTIST ONE. >> NOT ON ARTIST ONE. >> TELL US ON ARTS HISTORY PRESERVATION. >> CORRECT. >> I HAVE TO BE 501 C3? >> IT'S 20%. >> NO MORE THAN 20% OF THEIR OPERATING BUDGET. >> OUR LIAISON IS ALEX PERETA ON ARTS AND HISTORY. WE KNOW NOW WHO TO SEND OUR QUESTIONS TO [LAUGHTER] >> COMPLAINT. >> HE WILL SEND TO ME. THANK YOU. >> ANYTHING ELSE TO DO. >> THANK YOU, MARY. >> YOU'RE WELCOME. THANK YOU. >> ANY OTHER QUESTIONS FOR ANTOINETTE, COUNSEL? >> GOOD JOB. >> THANK YOU, ANTOINETTE. >> WISH I COULD GIVE YOU 50 [OVERLAPPING] I'M JUST GOING TO SAY THIS WITH FULL DISCLOSURE. I'M SO THANKFUL SHE'S HERE BECAUSE A LOT OF TIMES THEY TALK TO ME ABOUT THIS STUFF. I'VE GOT 1,000 THINGS GOING THROUGH MY MIND AND MY EYES START ROLLING BACK IN MY HEAD AND I FEEL SORRY FOR ANTOINETTE SOMETIMES BECAUSE SHE HAS TO SAY IT TO ME TWICE, SO I APPRECIATE WHAT SHE'S DOING. >> A FOLLOW UP, COUNCILMAN FRANKLY, COMING UP IN THE FUTURE, WE NEED TO TALK ABOUT THIS ART UMBRELLA TYPE APPROACH, ANTOINETTE I THINK YOU'RE AWARE OF THAT. >> ABSOLUTELY. WHAT I'LL DO NOW IS THOSE CITIES THAT I SHOWED YOU, I WILL BREAK DOWN HOW THEY DO IT AND BRING THAT BACK TO COUNCIL AND THEN SAY, HERE'S WHERE I RECOMMEND. >> THANK YOU VERY MUCH. >> THANK YOU. >> COUNCIL, IT'S 1:27 P.M AND WE ARE NOW [4. EXECUTIVE SESSION] MOVING INTO EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE 551.071. CONSULTATION WITH ATTORNEY IN EXECUTIVE SESSION WILL BE CONDUCTED TO DISCUSS AND RECEIVE LEGAL ADVICE CONCERNING PENDING LITIGATION AND/OR A SETTLEMENT OFFER OR ON A MATTER IN WHICH THE DUTY OF THE ATTORNEY TO THE GOVERNMENTAL BODY UNDER THE TEXAS DISCIPLINARY RULES OF PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS CLEARLY CONFLICTS WITH THIS CHAPTER RELATED TO THE FOLLOWING, 4A I, RAC INDUSTRIES VERSUS CITY OF GALVESTON AND 4B PURSUANT TO TEXAS GOVERNMENT CODE 551.072, DELIBERATION REGARDING REAL PROPERTY, THE COUNCIL MAY CONVENE INTO A EXECUTIVE SESSION TO DISCUSS THE PURCHASE EXCHANGE LEASE OR VALUE OF REAL PROPERTY LOCATED AT OR NEAR THE AIRPORT. WE ARE NOW INTO EXECUTIVE SESSION. VERY GOOD. IT IS 2:24 P.M ON AUGUST 22. WE ARE OUT OF EXECUTIVE SESSION, AND WE HAVE GONE THROUGH ALL THE ITEMS ON OUR AGENDA, AND WE ARE ADJOURNED. THANK YOU, COUNSEL. * This transcript was compiled from uncorrected Closed Captioning.