[00:00:02] IT IS 9 A.M.. I AM OFFICIALLY GOING TO CALL THE CITY COUNCIL WORKSHOP AND OUR WORKSHOP TO [1. DECLARATION OF A QUORUM AND CALL MEETING TO ORDER] ORDER FOR AUGUST 14TH, 2025. IT IS 9:01 A.M. AND GLAD TO HAVE EVERYBODY HERE, THOSE THAT ARE IN THE AUDIENCE. THANK YOU FOR BEING HERE. FOR THOSE THAT COUNCIL. NICE TO SEE YOU. WE GOT A LITTLE BREAK BETWEEN OUR LAST MEETING, BUT I THINK WE'RE GETTING INTO A FLURRY OF MEETINGS COMING UP HERE. SO WE'LL BE SEEING EACH OTHER A LOT COMING UP HERE THROUGH THE MIDDLE OF SEPTEMBER. YEAH. VERY GOOD. THANK YOU. IF WE'RE TELECASTING. IS THAT RIGHT? YEAH. FOR THOSE THAT ARE WATCHING IN THE COMMUNITY. GLAD TO HAVE YOU WITH US THIS MORNING. WE'RE DOING MORE BOARD PLANNING COMMISSION INTERVIEWS TODAY. AND ALSO, THIS IS BUDGET TIME. WE'RE GOING TO BE TALKING ABOUT THE CITY'S BUDGET, THE PARK BOARD'S BUDGET. BE TALKING ABOUT THE FUTURE AND OUR MEETINGS COMING UP IN THE NEXT MONTH OR SO ON HOW WE'LL APPROACH THIS BUDGET. SO GLAD TO HAVE YOU WITH US, THAT WE DO HAVE ALL OF OUR MEMBERS PRESENT, BUT LET'S HAVE A ROLL CALL. MAYOR BROWN. MAYOR PRO TEM ROBB. PRESIDENT. COUNCIL MEMBER LEWIS. PRESIDENT. COUNCIL MEMBER FINKLEA. COUNCIL MEMBER. BROWN. COUNCIL MEMBER. PORRETTO. PRESIDENT. COUNCIL MEMBER RAWLINS. HERE. VERY GOOD. LITTLE HOUSEKEEPING CHORES. COUNCIL. WE WILL BE IN ROOM 204 HERE FOR ITEMS ONE. EXCUSE ME. YEAH. ITEMS ONE THROUGH FOUR A AND THEN AS WE GET TO ITEMS FIVE AND SIX, WE WILL MOVE TO THE COUNCIL CHAMBERS. AND WE'LL BE IN COUNCIL CHAMBERS FOR ITEMS FIVE AND SIX. VERY GOOD. LET'S GO AHEAD NOW. [3.A Interviews of Wharves Board and Planning Commission Applicants] WE'RE GOING TO START WITH OUR INTERVIEWS. LET'S GO AHEAD AND READ THAT PLEASE JANELLE. ITEM THREE A INTERVIEWS OF WHARVES BOARD AND PLANNING COMMISSION APPLICANTS. VERY GOOD COUNSEL. WE'RE GOING TO START WITH THE BOARD'S BOARD FIRST TO GIVE YOU AN UPDATE ON WHERE WE STAND WITH THE WORSE BOARD. WE HAD THE POSSIBILITY OF TWO APPOINTMENTS THAT WILL BE AVAILABLE. ONE OF THE POTENTIAL APPOINTMENTS JIM YARBOROUGH HAS ELECTED NOT TO SEEK REAPPOINTMENT. SO WE ONLY HAVE ONE SPOT THAT COULD POSSIBLY BE CONSIDERED FOR REAPPOINTMENT. THAT'S REALLY GONZALEZ. WE DO. THAT OPENS UP ANOTHER VACANT POSITION THEN ON THE WARDS BOARD. SO WE HAVE A VACANT POSITION AND A POSSIBLE REAPPOINTMENT ON THAT. ANY QUESTIONS ON THAT? AND WHILE WE'RE TALKING, LET'S TALK ABOUT THE PLANNING COMMISSION. WE HAVE THE POTENTIAL FOR TWO APPOINTMENTS THERE. RAJAN EDWARDS HAS ELECTED NOT TO REAPPLY TO THE PLANNING COMMISSION. SO WE HAVE MARY JAN LANTZ, WHO IS AVAILABLE FOR REAPPOINTMENT, AND THEN WE HAVE AN OPEN VACANCY ON THE PLANNING COMMISSION. ALSO. ANY QUESTIONS COUNSEL. ALL RIGHT, JANELLE, LET'S GO AHEAD. WE'RE GOING TO TAKE THEM IN ORDER OF HOW THEY FILED THEIR APPLICATION. MR.. C.W. BILL ROUSE WILL BE FIRST. THAT'S THE WORST PART OF THIS IS MY MY DEEPEST BUT ALL THE WAY AROUND. OH, IT GETS SO SORE. YEAH. OH MY GOD. THE WORST PART. DON'T DRINK ANY ORANGE JUICE. NO. THAT'S WHY YOU'RE TOO STRONG FOR EVERYTHING. THAT ACID AND ORANGE JUICE. WE JUST SAID IT WOULD KILL HER. LIKE SO MANY ACCIDENTS, I STILL HAVE TO GO TO THE DENTIST. BUT NOTHING IS LOOSE OR ANYTHING. YEAH, I THOUGHT FOR SURE I HAD BROKEN MY NOSE AND THAT I KNOCKED THESE TWO AND THEY HURT SO BAD. LOOK FOR ME. BE ON THE LOOKOUT FOR ANY COLOR CHANGE IN THOSE TEETH. IF YOU SMILE AND YOU SEE A LITTLE OFF RAY, YOU'LL BE EXCITED TO BE HONEST. GOOD MORNING, MR. ROUSE. HOW ARE YOU, SIR? GOOD MORNING GREG. GOOD MORNING BILL. HOW ARE YOU? GOOD TO SEE YOU. YEAH. HEY, DAVID. GOOD MORNING. MATTHEW. PLEASURE TO MEET YOU. YES. HI. GOOD MORNING. GOOD MORNING. WE'RE FIRST OF ALL, I WANT TO THANK YOU. YOU HAVE APPLIED BEFORE AND WE GREATLY APPRECIATE YOU HANGING IN THERE AND COMING [00:05:01] BACK AND VISITING WITH US. AS YOU KNOW, WE'LL GIVE YOU JUST A COUPLE OF MINUTES TO INTRODUCE YOURSELF. AND THEN WE'LL OPEN TO QUESTIONS, SIR. OKAY. I HAVE. A HANDOUT. AS I USUALLY DO. HERE YOU GO. IT'S A ONE PAGE HANDOUT BECAUSE AND A ONE PAGE ABOUT ME. BECAUSE I BELIEVE IN ONE. IF YOU CAN'T GET IT ON ONE PAGE, YOU'RE NOT BEING CONCISE ENOUGH. SO YOU KEEP TELLING THEM ABOUT THE BUDGET. BUT CAN'T WE GET IT DOWN TO ONE PAGE? ONE PAGE? THE. I'VE GOT SOME NOTES THAT I'D LIKE TO TELL YOU A LITTLE BIT ABOUT MYSELF. I'M A RETIRED CHIEF FINANCIAL OFFICER OF A PUBLIC COMPANY. I RETIRED AND SAILED AROUND THE WORLD WITH MY WIFE FOR ALMOST 12 YEARS. WE VISITED 58 COUNTRIES AND 300 PORTS IN THE WORLD. AND I CAN TELL YOU THE BEST PORT AND THE WORST PORT. DON'T GO TO SRI LANKA. OKAY, IF THAT'S A HINT, DON'T WORK FOR IT. I'VE BEEN IN FIVE DIFFERENT INDUSTRIES AND TOP MANAGEMENT POSITIONS, INCLUDING CEO, PRESIDENT CHIEF MARKETING OFFICER, JUST A WIDE VARIETY OF POSITIONS. AND FRANKLY, I THINK THAT I, I WENT UP IN ORGANIZATION BECAUSE I WAS ALWAYS THE ONE THAT SAID, PUT ME ON COAT. I VOLUNTEERED, AND THAT'S THE REASON I'M HERE TODAY TO VOLUNTEER. AND BY THE WAY, JUST AS A SIDE TO GET BACK TO YOU GUYS, I REALLY APPRECIATE THE FACT THAT YOU VOLUNTEER. I KNOW YOU DON'T DO IT FOR THE MONEY AND YOU DO IT FOR GALVESTON, AND THAT'S IMPORTANT TO EVERY PERSON IN GALVESTON. I RECENTLY WAS A MEMBER OR STILL AM A MEMBER OF THE PARK BOARD BEACH PATROL COMMITTEE. THIS WAS A COMMITTEE THAT YOU MAY OR MAY NOT BE FAMILIAR WITH TO, THAT WAS FORMED ABOUT A YEAR AND A HALF AGO. AND MY CLAIM TO FAME IS THAT I WENT TOE TO TOE WITH THE CFO OF THE PARK BOARD ON TWO OCCASIONS ON HIS METHOD OF BUDGETING, WHICH I WAS AGAINST. AND BY THE WAY, I'M THE ONLY PERSON THAT VOTED NO ON THE BUDGET, AND THAT'S A MATTER OF RECORD IF YOU WANT TO CHECK THAT OUT. ABOUT ME. I BELIEVE EVERY PROBLEM HAS A SOLUTION. I DON'T BELIEVE THAT THEY'RE UNSOLVABLE PROBLEMS. THERE'S JUST A SOLUTION THAT HASN'T BEEN DISCOVERED. I BELIEVE IN EXPANDING A ORGANIZATION OF BUSINESS BASED ON OPPORTUNITIES AND THE ASSETS THAT THAT ORGANIZATION HAS. THOSE THINGS, THOSE TWO THINGS HAVE TO MATCH. I BELIEVE IN LONG TERM PLANNING, BUT I ALSO BELIEVE IN SHORT TERM TAKING ADVANTAGE OF OPPORTUNITIES. AND A GOOD EXAMPLE OF THAT WOULD BE STEALING SECOND BASE. IT'S A SHORT TERM. YOU'VE GOT TO DO IT NOW KIND OF SITUATION. I BELIEVE IN HONOR ETHICS AND TRANSPARENCY. AND IT'S DIFFICULT FOR ME TO SAY WHICH ONE OF THOSE IS MOST IMPORTANT. IT'S LIKE THEY'RE ALL IMPORTANT. I UNDERSTAND LORDS. AS A CFO, I MANAGED BOARD MEETINGS PARTICIPATED IN BOARD MEETINGS, AND WAS A BOARD MEMBER. AND I ALSO UNDERSTAND THAT INDIVIDUAL BOARD MEMBERS REALLY DON'T MAKE DECISIONS. THE BOARD DOES. AND A GOOD BOARD MEMBER INFLUENCES THE BOARD. TO HIS IDEA. IF HIS IDEAS ARE LOGICAL TO THE ENTIRE BOARD, THEN IT'S A GOOD THING FOR THE BOARD. SO I BELIEVE THE BOARD MEMBER INFLUENCES. AND WHY AM I HERE? I'VE ALWAYS BEEN A VOLUNTEER. LIKE I TOLD YOU EARLIER, I WAS THE GUY THAT ALWAYS SAID, PUT ME IN, COACH. I HAVE MARINE EXPERIENCE, PORT EXPERIENCE AND TOP MANAGEMENT AN EXPERIENCE. I HAVE A LOT OF EXPERIENCE IN OPERATIONS PLANNING AND FINANCE. AND LASTLY, I'M AVAILABLE. VERY GOOD. THANK YOU, BILL, VERY MUCH. LET'S OPEN UP TO QUESTIONS. COUNSELOR, I'VE GOT TWO QUESTIONS. [00:10:02] THE FIRST ONE IS IF YOU'RE APPOINTED TO WAR COURT, HOW DO YOU HOW WOULD YOU HANDLE A DISAGREEMENT ON BUDGETING WITH YOUR MANAGEMENT? AND HOW HOW DO YOU HOW WOULD YOU NAVIGATE THROUGH THAT? WELL YOUR YOUR EXAMPLE IS, IF I UNDERSTAND IT CORRECTLY, IS SIMILAR TO THE EXAMPLE I GAVE EARLIER. IF I, AS A MEMBER OF THE BOARD, HAVE AN ISSUE WITH METHOD THAT THE CFO IS USING TO BUDGET. THEN IT'S MY DUTY TO CONVINCE HIM THAT. THAT I BELIEVE THAT HE'S WRONG. AND WHY. OKAY. AND IT'S MY DUTY TO CONVINCE HIM AND THE BOARD. RIGHT? OF THE CORRECT WAY OF DOING IT. NOW, IT'S NOT MY DUTY TO. MAKE THE DECISION AS A BOARD MEMBER. IT'S MY DUTY TO INFLUENCE THE DECISIONS OF THE BOARD AND TO HELP ANY WAY I CAN. A MANAGEMENT PERSON, CEO, CFO. AND THEN THE SECOND QUESTION IS, OUTSIDE OF THE CRUISE INDUSTRY, WHERE DO YOU THINK THE NEXT STRATEGIC INVESTMENT THAT SHOULD BE PURSUED AT THE PORT OF GALWAY? YOU KNOW, THAT'S A REALLY DIFFICULT QUESTION BECAUSE TO ANSWER THAT CORRECTLY, YOU HAVE TO GIVE ME ABOUT AN HOUR AND ALL RIGHT. SO BUT LET ME GIVE YOU A SHORT ANSWER. WE ALL HAVE AN EXAMPLE OF A VERY SUCCESSFUL PORT MAKING THE WRONG DECISION IN TERMS OF A NEW MARKET TO APPROACH. THEY SPENT A QUARTER OF $1 BILLION GOING AFTER THIS NEW MARKET APPROACH. AND THAT WAS THE CRUISE BUSINESS AND THAT WAS THE PORT OF HOUSTON. SO MY POINT IS WE HAVE TO BE VERY CAREFUL ABOUT MARKETS. MARKETS NEED TO MATCH OUR ASSETS AND OUR ABILITY TO PAY FOR THEM AND OUR ABILITY TO GET ON THAT. HOUSTON THAT PARTICULAR CRUISE PORT WAS SET UP FOR FAILURE IN THE VERY BEGINNING BECAUSE OF ONE REASON. THERE'S OTHERS, BUT ONE MAJOR REASON GAMBLING, BECAUSE IT WAS SO FAR INLAND THAT THEY MISSED AN ENTIRE NIGHT GAMBLING AND DRINKING. AND IF ANYTHING ELSE, THAT WAS NOT TO MENTION ANTIGUA AS ALL THE REFINERIES AND INDUSTRIES AND ALL AROUND NOT GOOD IDEA. SO WE HAVE TO BE CAREFUL NOW. YES. EXPANSION. YOU KNOW, I WENT TO THE COURT YESTERDAY AND AT THE OPEN HOUSE, AND I THINK THEIR PLAN FOR CARGO EXPANSION IS REALLY SOUND. IT'S REALLY GOOD. WE'RE NOT GOING TO GET THE CONTAINER BUSINESS. I MEAN, UNLESS SOMEBODY CAN COME UP WITH BEING AND A HALF DOLLARS OF INVESTMENT AND GET ALL OF THE INFRASTRUCTURE HERE, BUT THERE'S A LOT OF CARGO THAT IS IN CONTAINER, AND WE DO HAVE ACCESS TO I-45 AND TRUCKS AND SOME RAIL. SO THERE'S OPPORTUNITIES. WE JUST HAVE TO PICK THEM VERY CAREFULLY BECAUSE WE DON'T HAVE A HUGE BANKROLL. CAREFUL. ANY FURTHER QUESTIONS COUNCIL? YES. THE CRUISE INDUSTRY HAS BEEN GROWING RAPIDLY AROUND THE WORLD AND ESPECIALLY IN GALVESTON. THE REVENUES FROM FEES, PASSENGERS AND PARKING INCREASE EVERY YEAR. MANY PLACES AROUND THE WORLD ARE HAVING PROBLEMS WITH WHAT THEY CALL OVERT TOURISM FROM CRUISE. HOW CAN WE BALANCE THE CRUISE GROWTH AND THE IMPACT ON THE COMMUNITY AND ITS RESIDENTS? DOES GALVESTON ACTUALLY HAVE A LIMIT TO THE NUMBER OF TOURISTS AND CRUISE SHIPS THAT CAN MANAGE ON THE ISLAND? OKAY, BARCELONA IS PROBABLY NUMBER ONE IN THE REVOLT AGAINST TOURISM. IT'S NOT JUST CRUISE, IT'S TOURISM. AND YOU KNOW, I'M OLD ENOUGH TO REMEMBER WHEN GALVESTON REVOLTED AGAINST TOURISM. RIGHT. TERRIBLY AGAINST TOURISM. HOW CAN WE BALANCE? IS THERE TOO MUCH? YOU KNOW, THAT THAT NEEDS ATTENTION AND THAT NEEDS TO BE CHECKED SOMEHOW EVERY YEAR AS WE MOVE THROUGH HERE, BECAUSE GALVESTON HAS DEFINITE BORDERS, IT'S NOT LIKE IT'S VERY CONFINED. SO WE NEED TO BUT AT THE SAME TIME, IT'S AN OPPORTUNITY THAT WILL HELP GROW OUR PORT. SOMETIMES YOU TO GET THE GROWTH THAT YOU WANT AND THE REVENUE YOU HAVE TO DO [00:15:05] THINGS THAT AREN'T NECESSARILY YOUR NUMBER ONE CHOICE. IF YOU HAD THE ASSETS AND REVENUE TO DO SOMETHING ELSE. SO IT'S IT'S I BELIEVE THE CRUISE BUSINESS HAS GIVEN GALVESTON A PATHWAY TO HAVING A GREAT PORT THAT SERVES MORE THAN JUST CRUISE BUSINESS. THANKS. VERY GOOD. ANY OTHER QUESTIONS? SEE? YES. YES. SO AS YOUR EXPERIENCE AS A CFO, TELL ME ABOUT THE IMPORTANCE OF AUDITS AS IT RELATES TO IMPROVING PROCESSES AND THEN ALSO AS IT RELATES TO CAPITAL PROJECTS. CAN YOU TELL ME THE YOUR EXPERIENCE AND EXPERIENCE AND OPINION ON THAT? WELL, DAVID, I WAS A CFO OF A BIOTECH COMPANY AND A BIOTECH COMPANY. IF YOU UNDERSTAND BIOTECH COMPANIES, THEY'RE THE WILDCATTERS. SO MY EXPERIENCE AS CFO WAS ALL ABOUT RAISING CAPITAL THROUGH SELLING STOCK AND MANAGING BUDGETS AND MATCHING THE DEMAND FOR CLINICAL TRIALS. THAT WAS MY EXPERIENCE AS CFO. I HAD NEVER BEEN A CFO. MY BACKGROUND IS NOT ACCOUNTING, BUT IN A AND YOUNG STARTUP COMPANY LIKE WE WERE. THE CEO NEEDS ALMOST AN IDENTICAL, ALMOST A TWIN, A BACKUP TO TAKE CARE OF ALL OF THE DEMANDS OF STOCKHOLDERS, THE LEGAL DEMANDS AND PRESENTATIONS TO WALL STREET. SO THAT WAS MY EXPERIENCE AS CFO. MAINTAINING THE PLAN. RAISING CAPITAL. CAPITAL. MATCHING EXPENSES. LONG TERM PLANNING. CLINICAL TRIALS. WHICH THOSE STILL BANKRUPT. ANYBODY? I GUESS YOU KNOW, SOME OF YOU KNOW, THE EXPENSES OF DOING THAT. AND WE THE COMPANY WAS INVOLVED IN A CURE FOR MIS. SO IT WAS A BIG DEAL THAT NEEDED BIG MONEY. EVENTUALLY THE COMPANY GOT BOUGHT BY ANOTHER PHARMACEUTICAL COMPANY. SO NO. AND I DO UNDERSTAND THAT I WORK FOR A PHARMACEUTICAL COMPANY. THERE YOU GO. ANY FURTHER QUESTIONS, COUNSEL? THANK YOU FOR THAT IDENTIFIER WITH BARCELONA THAT LOOKED THAT UP REAL QUICK. THAT'S PRETTY CRAZY. SO YEAH. YEAH. WELL, HOPEFULLY WE ALL GET THERE. WELL, THEIR IMPORTANT CALL. BARCELONA IS ONE OF MY FAVORITE PORTS IN THE WORLD. WHAT DID THEY DO? RIGHT. WELL, THERE'S A LOT OF THINGS THAT I LIKE ABOUT THE PORT OF BARCELONA THAT ACTUALLY GALVESTON CAN CAPITALIZE ON. AND IT'S ONE OF THE INGREDIENTS IN THE IN THE MASTER PLAN. ONE OF THE NICE THINGS ABOUT THE PORT OF BARCELONA FROM A NON CARGO PERSPECTIVE, BECAUSE MY PERSPECTIVE WAS A PRIVATE YACHT. RIGHT. THAT'S WHAT WE ARRIVED ON. AND OF COURSE I'VE BEEN THERE ON A CRUISE SHIP ALSO THE DOWNTOWN. A THRIVING PART OF DOWNTOWN IS RIGHT AT THE PORT. IT MAKES IT JUST WONDERFUL. JUDY AND I GOT THERE. WE PLANNED ON SPENDING AT PORT VALE, THE MARINA AT PORT VALE. WE PLANNED ON SPENDING A WEEK AND TWO MONTHS LATER WE WERE CHECKING OUT. BECAUSE YOU YOU STEP OFF YOUR BOAT AND YOU'RE RIGHT THERE IN DOWNTOWN. I MEAN, YOU'RE LESS THAN A CITY BLOCK TO FIND RESTAURANT OR COFFEE OR WHATEVER YOU WANT. SO IT WAS LIKE BARCELONA. THE CITY OF BARCELONA EMBRACED THE PORT, RIGHT? IT FLOWED FREELY AND IT EMBRACED. AS AN ARCHITECT, I THINK YOU KNOW WHAT I'M TRYING TO SAY. THE UNFORTUNATELY HERE WE'VE GOT TO CORRECT WHAT THE PORT IS FROM THE PORT. AN INDIVIDUAL. THE PORT. THE PERSPECTIVE OF THE. OF THE CITY. FROM THE PORT. IT'S ALMOST LIKE THE CITY HAS THEIR BACK TO THE PORT. AND I'M NOT AN ARCHITECT LIKE BOB OR A PLANNER TO KNOW HOW TO CHANGE THAT. BUT IF WE CAN CHANGE THAT, IT'LL HELP THE CITY. IN YOUR TRAVELS, DID YOU. CAN YOU RECOLLECT A PORT? MAYBE THAT WASN'T A PORT OF CALL, OR AN ISLAND OR SOMETHING WITH SIMILARITIES [00:20:04] TO WHAT WE HAVE HERE IN GALVESTON, OR WHAT WE WERE EXPERIENCING? THAT'S A GOOD QUESTION. I'D SAY NOT REALLY. NOT NOT REALLY. WE ALWAYS FIND OURSELVES IN UNIQUE SITUATION? NO. NOT REALLY. I MEAN, THERE ARE SOME PORTS WHERE THE CITY AND THE AREA THAT YOU WANT TO BE ARE FAR FROM THE PORT. COCHIN, INDIA IS THAT WAY. THERE'S A LOT THAT WAY. BUT MANY OF THE MEDITERRANEAN PORTS, I GUESS, BECAUSE THEY PREDATE GALVESTON. THE PORT WAS AN INTEGRAL PART OF THE CITY, AND SO IT IS TODAY, MANY OF THE EUROPEAN PORTS. SO IT'S A GOOD, GOOD QUESTION. I DON'T KNOW, I'LL GIVE IT SOME THOUGHT AND GIVE YOU SOME CANDIDATES TO LOOK AT. WHAT WAS THE SIZE OF THE BOAT YOURSELF? IT WAS A 54 FOOT SAILING KETCH. SO IT WAS A TWO MASTED SAILING KETCH WAS MADE BY A FRENCH COMPANY BY THE NAME OF AMEL. AND IT WAS WONDERFUL, ACTUALLY. UNFORTUNATELY, WE WE WERE IN THE INDIAN OCEAN IN A CYCLONE. SO WE WERE ABOARD THE BOAT, JUST THE TWO OF US DURING A CYCLONE. THE NOAA SATELLITE ABOVE HAD BEEN DOWN FOR TWO YEARS, AND NOBODY TOLD ANYBODY OR NOBODY TOLD US. AND THE WEATHER REPORTING INFORMATION THAT WE HAD WAS WRONG. WOW. YEAH. THERE WAS ABOUT 20, 25 MILES FROM WHERE? FROM OUR POSITION THAT HAD ABANDONED SHIP AND FREIGHTER. PICKED THEM UP, SO. WELL, YOU KNOW, SO. BUT YOU MADE IT. YOU MADE IT OUT. WELL, YEAH, I'LL FIGURE IT OUT. IT MIGHT BE A LITTLE SCARY. YEAH. WE STILL MISSED THAT, BY THE WAY. THAT WAS 12 YEARS FULL TIME. WOW. BILL, I THINK WE COULD SIT HERE FOR A LONG TIME TO HEAR ALL THOSE. I'M SORRY. I'M SORRY. NO, NO, IT'S MY FAULT. I KNOW, I THINK IT'S WONDERFUL. AND YOUR WEALTH OF INFORMATION GOSH WOULD APPLY TO SO MANY THINGS HERE. SO WE WISH YOU THE BEST OF LUCK ON THESE NOMINATIONS, SIR. THANK YOU VERY MUCH. THANK YOU. THANK YOU. I ALWAYS THOUGHT I WANTED TO SAY. ALL RIGHT. RALPH MORRIS COUNCIL HAS SENT AN EMAIL YOU'VE RECEIVED. HE HAS COVID. HE'S REQUESTED AN INTERVIEW FOR AUGUST 28TH BEFORE OUR MEETING. SO UNLESS THERE'S ANY CONCERNS WITH THAT, WE WILL PUT HIM DOWN FOR THAT. I JUST WENT BACK AND LISTEN TO HIS LAST THREE INTERVIEWS. YEAH. ERIC ITALIAN WILL BE OUR NEXT. WE WILL MOST LIKELY BE TURNING IN OUR TALLIES BEFORE THEN. CORRECT? NO, WE I THINK GIVES THEM UP TO NOON OR TO THE MEETING TIME. LAST TIME WE JANELLE WAS GETTING THINGS AT LIKE FIVE MINUTES BEFORE THE MEETING. BEFORE THE NEXT MEETING? YEAH. YEAH, SHE I MEAN. GOOD MORNING. ERIC, HOW ARE YOU? HOW ARE WE DOING TODAY, ERIC? I'M GOOD. ALL RIGHT. GLAD TO HAVE YOU HERE. AND, ERIC, WHAT WE'LL DO IS GIVE YOU A COUPLE OF MINUTES TO INTRODUCE YOURSELF. THEN WE'LL OPEN IT UP FOR QUESTIONS, SIR. SURE. MY NAME IS ERIC. SCRAMBLED BORN AND RAISED HERE IN GALVESTON. WENT TO BALL HIGH. GRADUATED SHORTLY AFTER THAT. JOINED THE NAVY. GOT AWAY FOR FOUR YEARS. I THINK WE SHOULD ALL GET OFF THE ISLAND FOR A LITTLE WHILE. AT LEAST THAT'S WHAT I TELL EVERYBODY. BUT OF COURSE, LIKE MANY OF US, WE GOT CALLED BACK HOME. SO AS SOON AS I GOT HOME I HAD IT IN MY MIND. I WANTED TO SET ROOTS DOWN HERE. SO I ATTENDED A&M HERE ON PELICAN ISLAND AND GOT MY DEGREE OF BACHELORS AND MASTERS. MARITIME ADMINISTRATION AND LOGISTICS. AFTER GRADUATING, I WENT TO WORK FOR GULF COPPER SHIPYARD HERE ON PELICAN ISLAND, AND FOR A LITTLE UNDER FOUR YEARS I DID PROJECT MANAGEMENT FOR THEM. AFTER THAT, I WENT TO WORK FOR ARMY CORPS OF ENGINEERS AND THEIR REAL ESTATE DIVISION. WAS PLANNING ON DOING A CAREER THERE. BUT THEN I GOT A CALL FROM THE GALVESTON, TEXAS CITY PILOTS ASKING IF I'D BE INTERESTED IN APPLYING FOR THEIR DIRECTOR OF OPERATIONS POSITION, WHICH I GLADLY TOOK THE OPPORTUNITY. A COUPLE MONTHS, I THINK OF INTERVIEW PROCESS AND THEN WAS FINALLY OFFERED THE POSITION, AND I'VE BEEN THERE FOR A LITTLE UNDER FOUR YEARS NOW. VERY GOOD. THANK YOU FOR THE OPPORTUNITY TODAY TO INTERVIEW. YOU'RE WELCOME. THANK YOU. LET'S OPEN IT UP FOR QUESTIONS. COUNCIL. SO OUTSIDE OF THE CRUISE INDUSTRY, WHAT IS THE BIGGEST STRATEGIC ADVANTAGE [00:25:09] AND WHAT THE PORT SHOULD BE LOOKING AT IN TERMS OF BUSINESS TO BRING TO THE CITY. I THINK A STRATEGIC ADVANTAGE FOR THE PORT OF GALVESTON IS ITS PROXIMITY TO DEEPWATER. SO IT'S A QUICK IN AND OUT. I THINK ANY TYPE OF CARGO IS GOING TO APPRECIATE THAT ASPECT OF GALVESTON. THE INFRASTRUCTURE OF THE PORT IS LARGELY GEARED, AT LEAST ON THE SOUTH SIDE, TO ROLL ON ROLL OFF CARGO. THERE'S ALSO ACCESS TO RAIL, SO YOU HAVE GOOD OPPORTUNITIES FOR PROJECT CARGO. AS YOU CAN SEE CURRENTLY WITH THE WINDMILL BLADES. BUT THERE'S OTHER PROJECTS THAT ARE KICKING OFF ALL AROUND THE REGION THAT COULD, YOU KNOW, THOSE THOSE RAILS COULD LEND THEMSELVES TO. PELICAN ISLAND HAS A LOT OF GREEN SPACE GREENFIELD PROPERTY THAT COULD BE DEVELOPED ONCE. I THINK ONCE A BRIDGE IS IN PLACE, YOU'LL SEE KIND OF INTEREST PIQUED THERE. SO BUT PRIMARILY ACCESS TO TO DEEP WATER QUICKLY. PEOPLE WANT TO GET IN, GET OUT AS QUICK AS POSSIBLE. BECAUSE TIME IS MONEY. I HAVE A QUESTION. ERIC, I KNOW YOU'RE WITH THE PILOTS THERE. AND FROM YOUR STANDPOINT, WHAT DO YOU THINK THE PILOTS COULD DO TO POSSIBLY ASSIST THE PORT IN GETTING BETTER IN SOME AREAS? I THINK THE SERVICE THAT THE PILOTS ALREADY PROVIDE, WHICH IS AN EXCELLENT SAFETY AND EFFICIENCY RECORD, IS THE BEST THING THAT THEY CAN DO. I MEAN THAT IN PROVIDING THEIR EXPERTISE AND KNOWLEDGE. IF THERE'S ANY SPECIFIC QUESTIONS AS FAR AS DIRECTIONS TO TAKE ON POTENTIAL BUSINESS OPPORTUNITIES, I THINK THAT THEY SHOULD BE IN THE DISCUSSIONS, YOU KNOW, KIND OF PICK THEIR BRAIN. BUT SAFETY AND EFFICIENCY IS SOMETHING THAT THEY ALREADY DO VERY WELL AND, YOU KNOW, CONTINUE TO DO WHAT THEY'RE DOING. I WOULD AGREE WITH THAT. I THINK A PRIME EXAMPLE OF THIS IS THE USS TEXAS AND THE PILOTS. WE KIND OF BROUGHT THEM IN AND TOWARDS THE LATTER PART, BUT THEIR INPUT AND YOUR INPUT WAS SO HELPFUL FOR US GETTING DECISIONS THERE AT THE BOARD. MISSION ACCOMPLISHED. YEAH. GOOD JOB. EXACTLY. YES, BOB. JUST A FOLLOW UP ON THAT. YOU KNOW, THE PORT IS KIND OF A THREE LEGGED STOOL WITH CRUISE AND CARGO AND THEN THAT OTHER, YOU KNOW, WHICH IS KIND OF A TRACTION. IT'S NOT GONNA BE A CRUISE OR CAR. SO WHAT ARE YOUR THOUGHTS ON DEVELOPMENT OF THAT WATERFRONT AREA BETWEEN, I GUESS, THE EAST SIDE OF CRUISE SHIP TERMINAL 25 AND ALL THE WAY DOWN TO THE BATTLESHIP. NOW, I THINK IT'S SET UP TO BE JUST THAT. I THINK THAT YOU HAVE A SMALL DIVIDE, BUT IT'S ALSO A THOROUGHFARE IN HARBORSIDE THAT, YOU KNOW, JUST NEED TO WORK OUT THE KINKS AND THEN BE ABLE TO GET PEOPLE ACROSS IT. AND IT'S, YOU KNOW, AN OBVIOUS ATTRACTION. I THINK, FOR ANYBODY WHO'S DOWNTOWN TOURISTS AND LOCALS. AND WE SHOULD CAPITALIZE ON THAT. VERY GOOD. ANY OTHER QUESTIONS? COUNCIL JUST ANSWERED MY QUESTION. THANKS FOR ASKING, BOB. IF NOBODY ELSE HAS A QUESTION, I'M GOING TO ASK THE OTHER ONE. SURELY. SO THE CRUISE INDUSTRY IS GROWING RAPIDLY AROUND THE WORLD, ESPECIALLY IN GALVESTON. REVENUES FROM FEES AND PASSENGERS AND PARKING INCREASED EVERY YEAR, AND WE ARE USING THAT TO BUILD UP THE CARGO CAPACITY AND OTHER THINGS. MANY PLACES AROUND THE WORLD ARE HAVING PROBLEMS WITH OVERTOURISM. AND HOW CAN WE BALANCE THE CRUISE GROWTH AND ITS IMPACT ON THE COMMUNITY AND ITS RESIDENTS? DOES GALVESTON HAVE A LIMIT TO THE NUMBER OF TOURISTS THAT IT CAN MANAGE ON THE ISLAND? I DON'T KNOW WHAT THE LIMIT WOULD BE. I THINK THERE WOULD HAVE TO BE STUDIES DONE ON ON WHAT THAT LIMIT IS, AND I THINK IT'S WORTH LOOKING INTO. I THINK THE DIVERSIFICATION OF THE PORT AND ANY BUSINESS IS KEY. I DON'T THINK THAT THERE SHOULD BE, YOU KNOW, ALL EGGS IN ONE BASKET, IF YOU WILL. BUT IF YOU LOOK AT WHAT'S BEING DONE DOWN AT THE PORT CURRENTLY AND WHAT THE MASTER PLAN HAS SHOWN, I THINK THAT DIVERSIFICATION IS KIND OF BUILT INTO THE STRATEGIC MASTER PLAN. VERY GOOD. ANY OTHER QUESTIONS AT ALL? ERIC, THANK YOU SO MUCH. APPRECIATE IT. GREAT. GOOD DAY. THANK YOU. THANK YOU. YEAH. WILLIE GONZALEZ GOT IN. SOME GOOD HABITS. THESE ARE GOOD. OH, REALLY GOOD. OH, YEAH. SO EXPANDABLE. I'M SORRY. SURE. SAVE US. NO. GOOD MORNING. WILLIE. MORNING, WILLIE. [00:30:05] I JUST. SO DO I START OFF? YES. GO RIGHT AHEAD. LET YOU. ALL RIGHT. A COUPLE OF MINUTES FOR INTRODUCTION HERE WITH GONZALEZ. CURRENTLY SERVING. I'M HONORED TO BE SERVING. SO WHEN I FIRST STARTED A LOT OF BOARDS HERE IN TOWN. AND THIS ONE BY FAR IS IT'S THE MOST REWARDING. I DON'T KNOW IF IT'S BECAUSE OF THE AGE I'M AT IN MY LIFE RIGHT NOW, BUT WHEN I WAS, LIKE, WITHIN THE FIRST 2 OR 3 MEETINGS, I WAS SITTING DOWN AND GOING, WHAT AM I DOING HERE? I LOOK AROUND, WE GOT ENGINEERS, ATTORNEYS. WE HAVE YOU KNOW, BANK PRESIDENTS, MAYORS, SHERIFFS, COUNTY JUDGES. AND WE HAD THE PRAYER. SO WE DO A PRAYER EVERY DAY. BEFORE A MEETING. AND PASTOR DOUGHTY, I BELIEVE HIS NAME WAS HE CAME UP AND HE NAILED IT. HE SAID WE'RE ALL GATHERED TODAY AS GOD'S SOVEREIGN PLANS. WHAT HE SAID. AND SO IT'S LIKE HE'S SPEAKING RIGHT TO ME. AND SO HE'S LIKE, YOU GOT THIS. SO AFTER THAT, YOU KNOW, I WAS ABLE TO HAVE THE CONFIDENCE NOT JUST BECAUSE OF THAT, BUT I MEAN, IT WAS IT WAS THE EXTRA PUSH I NEEDED. AND SO I HIT THE GROUND RUNNING WITH THAT AND LEARNED, YOU KNOW, TO SIT BACK AND LISTEN FOR THE FIRST FEW MEETINGS TO KIND OF GET YOUR WHEELS AND YOUR FEET UNDERNEATH YOU. BUT SOMETHING THAT I'M MOST PROUD OF, AND I'LL START WITH THAT QUICKLY, IS THIS HERE IS THE POST-SCHOOL PROGRAM WE'RE WORKING ON. OH, THIS IS AN EMAIL THAT WAS SENT. I DON'T KNOW IF EVERYBODY GOT IT. THIS IS FROM CINDA, WHO WAS A SENIOR COUNSELOR. THIS IS REALLY KEY BECAUSE IT'S WHAT WE'RE DOING IS WE'RE REACHING OUT TO BALL HIGH AND O'CONNELL AND TEXAS A&M STUDENTS TO START A PATHWAY FOR MARITIME FOCUS, A CERTIFICATION PROGRAM. AND IT'S IN EFFECT THE DAY WE'RE DOING THIS. AND I DON'T KNOW IF SOME OF Y'ALL WEREN'T HERE WHEN I FIRST APPLIED, BUT MY FOCUS ON ANY BOARD EVER SERVING IN GALVESTON WAS TO RAISE OUR KIDS HERE. KEEP THEM IN TOWN AND HAVE GALVESTON AS A VIABLE OPTION TO LIVE HERE. AND THAT'S BEEN THE MOTIVATING FACTOR ON ALL THE OTHER BOARDS. BUT I DON'T SAY ON PLANNING. I CAN'T TELL YOU HOW MUCH THE PRICE OF HOUSE FOR. I CAN'T TELL YOU IT HERE BECAUSE OF THE 200 CELEBRATION GOING ON IN THE MONEY THAT WE'RE GOING TO START AN ENDOWMENT FOR SCHOLARSHIPS. NOW THE RUBBER MEETS THE ROAD, WE CAN REALLY DO HAVE A FEEL IF THERE'S SOMETHING WE CAN DO WITH THE CERTIFICATE PROGRAM THAT WE'VE GOT, AND IT'S GOING GREAT. SOME OF THE. SO JUST TO GIVE YOU AN IDEA. THIS IS FOCUSED ON LOGISTICS WORKFORCE, INCLUDING STEVEDORING, PORT MANAGEMENT, SHIPBUILDING, FORKLIFT FORKLIFT OPERATORS AND SEVERAL OTHER OPPORTUNITIES, AND IT'S GOING TO GROW AS A DECADE GOES ON. AS SUPPORT LIFTS ITSELF UP AND NOW, WITH THE NEW CONTRACT POTENTIAL FOR PELICAN ISLAND, WE'RE GOING TO NEED THOSE PEOPLE HERE LIVING IN GALVESTON, BUYING HOUSES HERE, BEING PART OF OUR COMMUNITY, BEING A LITTLE LEAGUE COACHES, YOU KNOW, THE WHOLE THING. SO THAT'S A REAL REWARDING THING FOR ME, AND I WANT TO SEE THAT THROUGH. I THINK I STILL HAVE MORE WORK TO DO WITH THAT AND TAKE IT TO THE NEXT LEVEL. WE WERE ABLE TO RAISE A LOT OF MONEY FOR THIS 200 CELEBRATION THAT WE HAVE COMING UP, AND THE GOOD THING ABOUT IT IS WE'RE ABLE TO HOLD SOME MONEY BACK FOR SCHOLARSHIPS. AND SO YEAR ONE, THE MONEY IS GOING TO GO TO A&M, BUT WE'RE NOT GIVING IT ALL TO THEM. WE'RE HOLDING SOME BACK. SO I MADE IT A POINT FOR US TO BEGIN IN YEAR 2 OR 3 AND MOVING FORWARD TO HOLD THAT MONEY FOR WELDERS, PIPEFITTERS FOR PEOPLE THAT WE CAN GET TO WORK QUICK. AND THESE ARE PEOPLE THAT CAN'T AFFORD A&M EVEN WITH A SCHOLARSHIP. THESE ARE PEOPLE THAT, YOU KNOW, MAYBE THEY HAVE A KID OR ONE TWO KIDS AND THEY'RE IN THE SERVICE INDUSTRY BUSINESS, AND THEY WANT TO GET OUT AND DO SOMETHING AND LIFT THEIR LIFE UP A LITTLE BIT. SO THAT'S WHY I ASKED THE BOARD IF WE COULD PLEASE MOVE THAT. AND THEY WERE VERY EVERYBODY ON THE BOARD AGREED THAT THAT'D BE A GOOD WAY TO SPEND THOSE MONIES. SO THERE'S THAT. THE LET'S SEE, THE OF COURSE, WE GOT THE CELEBRATION COMING UP. YOU KNOW, WE'RE PLANNING BIG THINGS FOR THAT. AGAIN, I'D LIKE TO TALK ABOUT THE SCHOLARSHIP. MONEY IS GOING TO GO FOR THAT. I HELPED ALSO WITH THE BOOK. BOOKS IS A BIG PART OF OUR HISTORY. AND THE PORT IS. AND THERE'S GOING TO BE A HARDBACK BOOK, AND I WAS ABLE TO FIND THESE ARE FAMILY, BUT BY THE FAMILY. THESE ARE PEOPLE THAT WORKED ON WHARVES. THEY WENT TO OUR BACK TO BACKYARD BARBECUE AND WE HAD PICTURES OF THEM. SO I WAS ABLE TO GIVE THOSE TO THE HISTORICAL FOUNDATION THEY'RE GOING TO BE IN THE BOOK, WHICH IS A GOOD MESSAGE TO SEND, THAT THE PORT ISN'T JUST EVERYBODY IN THE [00:35:04] BOARD ROOM, IT'S IT'S THE PEOPLE THAT WERE BRINGING IN THE BANANAS. AND IN FACT, THERE'S SOME PICTURES WITH BANANAS IN THERE. SO I WAS HAPPY TO CONTRIBUTE ON THAT. ANOTHER THING THAT I LIKE TO STRESS WITH OUR ENGINEERING DEPARTMENT IS WE'RE HIRING BETTER PEOPLE OUT FOR CONSTRUCTION WORKERS AND THAT KIND OF THING. IF WE CAN DO MORE THINGS IN-HOUSE TO SAVE MONEY, BECAUSE THESE BIDS ARE COMING UP AND THEY'RE REALLY HIGH, WHAT CAN WE DO TO SAVE THAT? ROGER'S BEEN REALLY GOOD ABOUT THAT, AND ESPECIALLY JEFFREY TO SAY, WELL, HEY, WE COULD DO THAT. LET'S KNOCK THAT OFF OF THERE. LET'S. AND SO WE'VE BEEN VERY PROACTIVE IN DOING THAT, AND I'M EXCITED TO DO THAT. ME COMING FROM A KIND OF A BUILDING BACKGROUND TO IT'S INTERESTING TO TALK TO JEFF AND SEE THE THINGS THAT WE CAN DO SOMETIMES HE SAID, NOPE, CAN'T DO THAT. OKAY. THAT'S FINE. I THOUGHT I'D ASK. REAL ESTATE COMMITTEE? NO, I'M ALSO THE VICE CHAIR FOR THE FINANCE COMMITTEE. AND I FIND IT FUNNY THAT WHEN WE WERE DOING WHEN WE WERE GETTING OUR PRESENTATION FOR OUR PORTFOLIO THAT WE WEREN'T IN THE CRUISE. WE DIDN'T HAVE CRUISE STOCKS. I'M LIKE, WELL, IF YOU'RE IN THE BUSINESS, PUT YOUR MONEY WHERE YOUR MOUTH IS. LET'S, LET'S, YOU KNOW, LET'S DIVERSIFY IN THAT. AND SO WE'VE DONE THAT AND THEY'VE DONE PRETTY WELL. BECAUSE, YOU KNOW, IF IF YOU'RE GOING TO WALK THE WALK, YOU MAY AS WELL, YOU KNOW, TALK THE TALK AND WALK THE WALK. THE REAL ESTATE COMMITTEE STARTED WITH BOB BROWN AND, AND SHARON AND WE'RE LOOKING AT, OF COURSE, MURRAY. AND I'M REALLY EXCITED ABOUT THAT. AND THE PRESENTATION BOB MADE RECENTLY, WHICH IS ACTUALLY AN ACTIONABLE ITEM FOR US. WE'RE GOING TO MOVE FORWARD AND INSTRUCT ROGER TO FIND OUT IF WE CAN GET SOME NEW DRAWINGS MADE UP WITH THAT LITTLE PIECE OF TRIANGLE THAT'S THEIR VERY KEY. THAT'S A TRANSITIONAL AREA. AND WHAT THE BATTLESHIP MOVING TO WHERE IT IS, I THINK BOB NAILED IT WHEN WE FIRST TALKED ABOUT ANCHORING THAT, THAT THAT BERTH FOR THAT SHIP AND OUR DOWNTOWN AREA. SO THAT'S NOW WE'RE GOING TO HAVE A COHESIVE WAY OF GALVESTON IS VERY RARE. WE DON'T A LOT OF PORTS DON'T HAVE THE OPPORTUNITY TO JUST SAY, HEY, LET'S LET'S DO SOME WATERFRONT RETAIL. THAT THAT LIKE DAVID SAID, THIS IS VERY, YOU KNOW, A HIGH END REAL ESTATE. SO WE GOT TO TREAT IT AS SUCH. AND I BELIEVE THAT'S THAT'S AT THE TOP OF MY LIST, BECAUSE AT THE END OF THE DAY, YOU GOT TO BE ACCESSIBLE TO THE RESIDENTS, YOU KNOW, AND SOMEPLACE THEY CAN COME AND SEE AND BENEFIT FROM ALL OF THIS. SO SO THAT'S, YOU KNOW, WITH WITH THAT, WITH BATTLESHIP 33RD STREET WE'RE THE NEXT STEP. THERE'S A LIGHT. SO, YOU KNOW, ONCE WE GET PEOPLE TO STOP IN THAT AREA, WE'LL BE ABLE TO MAYBE. HOPEFULLY BEAUTIFY THAT AREA AND BRING SOME OF THAT NORTH NORTH OF BROADWAY BUSINESS AND COMMERCE AND LIVING THERE. I MEAN, THAT'S A GOOD AREA TO MOVE TO AS WELL. MOVING FORWARD, YOU KNOW, ALONG WITH THE CONTINUING WITH THE WITH THE SCHOLARSHIP SITUATION, WITH THE CERTIFICATE FOR THE KIDS. I'D LIKE TO HAVE OUR AUDITING SYSTEM MORE IN LINE WITH WHAT THE CITY IS DOING. I KNOW WE TALKED ABOUT AND THAT'S ANOTHER THING I MEANT TO LEAD OFF WITH OUR RELATIONSHIP WITH CITY. FROM THE TIME I STARTED TO NOW, WHAT VIC HAS DONE IS AMAZING. AND SO. AND WE WELCOME THE INPUT. YOU KNOW, IT WASN'T QUITE LIKE THAT IN YEARS PRIOR. AND I THINK WE CAN LEARN FROM YOU ALL. YOU CAN LEARN FROM US. AND IT'S IT'S A GOOD WAY TO GROW THE CITY. AND SO THAT'S EXCITING TO ME. AND SO THE BIDDING PROCESS, ALONG WITH THE AUDITING PROCESS, KIND OF HAVE OUR OUR BIDDING PROCESS MORE ALIGNED WITH WHAT THE CITY DOES TOO. SO THERE'S BETTER EXPECTATIONS WHERE, YOU KNOW, THERE'S NO SURPRISES. AND I THINK THAT'S VERY IMPORTANT MOVING FORWARD. SO WE'RE TOGETHER THAT WAY. I DON'T WANT TO TAKE UP TOO MUCH OF YOUR TIME, BUT YOU KNOW, AS YOU'VE TALKED, YOU PROBABLY HAVE ANSWERED MANY OF OUR QUESTIONS ALREADY. I WANT TO BEFORE WE TAKE QUESTIONS, I WANT TO SAY I'VE HAD THE PLEASURE OF SERVING WITH WILLIE ON THE BOARD OF BOARD FOR A LITTLE WHILE NOW. HE'S A PRIME EXAMPLE OF A REPRESENTATIVE FOR THE COMMUNITY ON THESE BOARDS. HE LEARNED WHAT WAS GOING ON. HE SAT BACK AND REALLY RESEARCHED, AND NOW HE'S AN INTEGRAL PART OF THAT BOARD. HE'S REPRESENTED THE BOARDS BOARD NATIONALLY AT ORGANIZATIONS AND MEETINGS AROUND THE COUNTRY THERE. IT'S BEEN A WELL, YOU'VE BEEN A GREAT BOARD MEMBER, WILLIE. I APPRECIATE THAT. GREAT, I REALLY DO. TO HAVE A MAYOR SAY THAT TO ME. IT MEANS A LOT. WE IN BOSTON. SO THIS IS PART OF THIS. I DON'T KNOW IF Y'ALL KNOW THIS, BUT MEXICO ACTUALLY STARTED OUR PORT. WE WERE A PORT BEFORE YOU GUYS WERE A CITY, BY THE WAY. [00:40:02] AND AS PART OF IT. AS PART OF THAT, I MET THE ATTACHE FOR THE NAVAL GOVERNMENT FOR MEXICO IN BOSTON. SO I SAID, HEY, I'D LIKE TO HAVE YOU COME DOWN FOR OUR CELEBRATION, DO MARIACHIS, AND HAVE YOU HAVE THE COUNSEL PRESENT HIM WITH A, YOU KNOW, A DE A KEY TO THE CITY, WHATEVER IT TAKES. BUT I THINK TO HAVE THAT CONNECTION WITH MEXICO WOULD BE A NEAT THING. YOU KNOW, JUST TO REMEMBER WHERE WE CAME FROM. YEAH, I LIKE IT. LET'S TAKE QUESTIONS, BOB. I'M GOING TO FOLLOW UP ON SOME OF THE THINGS YOU SAID, BECAUSE IT WAS REALLY INTERESTING, ESPECIALLY YOUR INTEREST, I GUESS, IN THE WELFARE OF THE LOCALS. YES. SO THE CRUISE INDUSTRY IS GROWING VERY RAPIDLY AROUND THE WORLD AND ESPECIALLY IN GALVESTON. REVENUES FROM FEES, PASSENGERS AND PARKING INCREASE EVERY YEAR, AND WE'RE USING THAT TO BUILD CAPACITY AND CARGO, WHICH IS A GOOD THING IN MANY PLACES AROUND THE WORLD, ARE HAVING PROBLEMS WITH OVERTOURISM. AND SO MY QUESTION IS, HOW CAN WE BALANCE TOURISM AND ITS IMPACT ON THE COMMUNITY AND ITS RESIDENTS TO SCALE US AND HAVE A LIMIT ON THE NUMBER OF TOURISTS AND CRUISE SHIPS IT CAN MANAGE ON THE ISLAND? I THINK THERE'S A LIMIT. YES. IT'S NOT AN OPEN ENDED, JUST SOMEONE COME ALL UP. I KNOW MR. FINK IS VERY BIG ON TRAFFIC, AND ALL I CAN SAY IS YOU HAVE MY WORD THAT A MAJOR TRAFFIC STUDY WOULD BE DONE BEFORE I APPROVE ANYTHING ELSE COMING. CRUISE RELATED. BECAUSE I LIVE HERE, TOO, YOU KNOW, AND I TRAVEL THESE STREETS. YOU KNOW, WE WERE TALKING ABOUT WE GOT TO REMEMBER THAT, RIGHT AS THE NUMBERS ARE RIGHT NOW I'LL EIGHT HOURS OR 60. 40. SO IT'S WAY MORE HEAVILY ACTUALLY ON CARGO, RIGHT. WHICH IS GOOD. THAT'S A GOOD THING. THAT MAY CHANGE, YOU KNOW, SLIGHTLY ONCE WE GET A FEW MORE CRUISE SHIPS. BUT STILL, AS THAT CHANGES OUR CARGO. SO CHANGES THERE WAS JUST REAL QUICK. I MEANT TO SAY THIS, TOO, THAT WHEN I FIRST GOT ON THE BOARD, YOU SAW THE DISREPAIR OF ALL THE DOCKS THAT WERE HOW BAD THEY WERE TO THE TRIP. I WENT BACK HOME ALL EXCITED UNTIL A FRIEND OF MINE WORKED AT THE ILA AND SAID, MAN, WE'RE GOING TO FILL IN THOSE SLIPS AND GET THAT. HE JUST LOOKED AT ME AND HE GOES, WILLIE, YOUR KIDS ARE GOING TO BE OFF THE BOARD BEFORE THAT'S EVER DONE. AND I'LL BE DARNED IF WITHIN WITHIN SIX MONTHS. I INVITED HIM TO THE GROUNDBREAKING. SO THAT'S BIG. YOU KNOW, THEY'VE BEEN, LIKE, WAY SINCE THE 30S AND THE 40S TO HAPPEN LIKE THAT. AND WHY? BECAUSE WE WERE ABLE TO LEVERAGE THE MONEY FROM CRUISE. BUT YOU GOT TO DO IT, RIGHT? YES. NO, I TOTALLY AGREE. WE YOU KNOW, AND AGAIN, IF YOU NOTICE THE JOBS I JUST MENTIONED. THEY'RE NOT FOR SERVICE JOBS. THEY'RE NOT FOR WAITERS, BARTENDERS, THEY'RE FOR PIPEFITTERS STEVEDORING. THOSE ARE THE SCHOLARSHIPS. I WANT THE PEOPLE THAT I WANT TO WORK. SO THAT'S YOUR LOCAL. OKAY. HOPEFULLY THAT ANSWERS YOUR QUESTION, DAVID. YOU PROBABLY REMEMBER THE LAST TWO BOND ISSUANCES THAT WERE BROUGHT BEFORE US. YES. RIGHT. AND YOU REMEMBER, PROBABLY SOME OF THE CONVERSATIONS THAT WE HAD WAS THAT WE WERE PUT IN AN UNTENABLE POSITION OF HAVING TO VOTE FOR THEM BECAUSE THE CONTRACTS WERE ALREADY AWARDED FOR THE IMPROVEMENTS. SO WE COULDN'T SAY NO. HOW ELSE WERE YOU GOING TO FUND IT? AND WE MENTIONED THAT THE FIRST TIME, AND WE CAME BACK THE SECOND TIME IN THE SAME POSITION WHERE THE CONTRACT HAD ALREADY BEEN AWARDED FOR THE CMR FOR TERMINAL 1616. YEAH. AND THE SAME WAY. AND SO I REALLY WANT TO STRESS TO YOU THAT SHOULD YOU BE APPOINTED AGAIN? I NEED AN ADVOCATE OVER THERE THAT UNDERSTANDS THE PROCESS BY WHICH YOU GO THROUGH PLANNING, BECAUSE YOU SAID PLAN IS VERY IMPORTANT. IT IS. YES. YOU GO THROUGH PLANNING FOR THOSE CAPITAL PROJECTS, AND THEN YOU COME BEFORE THE FUNDING, BEFORE YOU AWARD THOSE CAPITAL PROJECTS, BECAUSE IT LEFT US NO CHOICE. AND WE HAD ZERO CHOICE IN THAT. RIGHT. SO I'M SORRY THAT YOU WERE PUT IN THAT POSITION, BUT I DO WANT YOU TO KNOW THAT THAT'S NOT THE WAY WE NEED TO MOVE FORWARD. I MEAN, I THINK WE'RE AT A POINT NOW WHERE WE'VE REACHED A GOOD MEDIAN LINE, SO TO SPEAK. WELL, I MEAN, YEAH, YOU'RE PRETTY MUCH CAPPED OUT ON YOUR. YEAH. YES. AND, YOU KNOW, THIS NEW MASTER PLAN, I DON'T SEE US EXCEEDING ITS EXPECTATIONS LIKE WE DID THE FIRST ONE. YEAH. UNDERSTAND WHAT HAPPENS. OKAY. THANK YOU. THANK YOU BOTH. CAN YOU. BRING US BACK TO JUST HOW MANY BOARDS YOU SERVED. AND VOLUNTEER FOR THE CITY OF GALVESTON? AND WHAT POSITIONS YOU HELD DURING THOSE TIMES? SURE. STARTED WITH A CHARTER REVIEW BOARD UNDER THE HELP OF SHRUB KEPNER AND LYDIA THOMAS IN 98. SHE SAW ME PAINTING MY HOUSE AND WORKING ON IT EVERY DAY SHE LEAVES. YOU KNOW, I WAS THE KID WITH LONG HAIR AND. BUT JUST ABOUT THIS HOUSE THAT I COULD BARELY AFFORD AND FIXED IT UP. AND SHE APPOINTED ME. SO. [00:45:03] WELL, SHE RECOMMENDED ME FOR A CHARTER REVIEW BOARD. AND ONE THING LED TO ANOTHER, YOU KNOW, AND CRAIG AND I SERVED ON PLANNING, AND I ENDED UP CHAIRING PLANNING COMMISSION AT THE BEST TIMES OF GALVESTON, AND AT THE WORST, ALL IN ONE, YOU KNOW, ZERO EIGHT. BUT NO, IT'S I'M HERE TO STAY. HERE. YOU KNOW, THERE WAS MULTIPLE TIMES THAT WE WE KIND OF CAME UP IN THE SAME WAY. SO. YEAH. THANK YOU. THANK YOU. DO. ANY OTHER QUESTIONS? COUNCILMAN ALEX, GO WITH THE HEARTSTRINGS. YES. SO MY MY DISTRICT IS A LARGE PART OF IT IS ISLA AND HISTORICALLY HAS BEEN. ISLA. AND I'VE GOTTEN A BIG HISTORY WITH THAT. RIGHT. THEY'RE HAVING A LITTLE BIT OF. A AND I'M SURE YOU KNOW, IT KIND OF CRUISE LINE CARGO. AND THE PORTS MASTER PLAN WERE INCREASING. CARGO WITH THE BERTHS BEING FILLED IN WERE GOING TO BE INCREASING CARGO. SO AND WITH THE NEW CONTRACT ON PELICAN ISLAND, HOW DO WE. AND YOU BRUSHED ON IT EARLIER. BUT HOW DO WE INCENTIVIZE AND HOW DOES THE PORT DO IT. HOW DOES THE CITY DO IT. HOW CAN WE WORK TOGETHER, INCENTIVIZING PEOPLE LIVING HERE AND STAYING HERE, RATHER THAN LIVING OFF ISLAND AND COMMUTING TO WORK? BECAUSE THAT'S THE RIGHT. IN A COMPLETELY RESIDENTIAL DISTRICT, IT'S VERY DIFFICULT TO FIND THAT TO WHERE YOU WANT PEOPLE LIVING HERE THAT AREN'T COMING OFF ISLAND RIGHT NOW. THAT'S BEEN MY MAJOR FOCUS SINCE I WAS 20 YEARS OLD HERE IN GALVESTON. TO DO WHAT WE HAVE TO DO TO KEEP THOSE PEOPLE HERE. AND I THINK THAT GOES BACK TO WHAT I WAS TALKING TO YOU ABOUT, THE 33RD STREET. THERE'S A LOT OF REAL ESTATE THERE THAT, THAT THAT CAN BE TRANSITIONAL FROM, YOU KNOW, THE PORT TO HOUSING TO RETAIL. YOU KNOW, IT'S ALL GOLF CART RELATED. JUST ABOUT I'M NOT SAYING. RIGHT. GOLF CARTS DOWN HARBORSIDE, PLEASE. BUT MY POINT IS IT'S ALL WITHIN REACH. AND MAN, THERE'S NOTHING BETTER. I'M GOING WAY, WAY BACK INTO THE 80S NOW, WHEN GALVESTON HAD A REALLY STRONG PORT AND WE HAD A MALL, AND THAT MALL STAYED BUSY BECAUSE OUR L.A. GUYS REMEMBER THAT PEARSON'S DAYS BOAT AND THEY SPENT 500 BUCKS ON ANOTHER JACKET, LIKE LIKE IT WAS NOTHING. YOU KNOW I WANT TO SEE THOSE DAYS COME BACK TO GALVESTON. AND I WANT YOU TO BE ABLE TO RAISE YOUR KIDS HERE. AND THEY MIGHT NOT STAY HERE, BUT HAVE IT AT LEAST ON THE TABLE, YOU KNOW, AT LEAST ON THE TABLE AND WITH THESE PROGRAMS. AND THAT'S THE OTHER THING WITH THAT'S ANOTHER REASON WHY I SAID LET'S LET'S NOT GIVE ALL THE MONEY IMMEDIATELY TO A&M. THEY'VE GOT A LOT OF MONEY. LET'S LOOK AT GALVESTON COLLEGE, COLLEGE OF THE MAINLAND. MAKE IT A COUNTY THING TO WHERE NOW, INSTEAD OF US LEAVING GALVESTON TO GO OUT TO THE COUNTY, THE COUNTY IS KIND OF COMING TO US. THAT'S THAT'S THE FOCUS OF THE LAND. WONDERFUL. ANY OTHER QUESTIONS? WELL, IF YOU COULD TOUCH ON YOU KNOW, OBVIOUSLY WE CAN'T NEGOTIATE CONTRACTS THAT ARE IN PLACE OR CONTRACTS OBVIOUSLY THAT ARE IN PLACE. BUT IF YOU CAN TOUCH ON, YOU KNOW, SOMETHING THAT WAS REALLY IMPORTANT TO ME WAS BRINGING THE CITY TO THE TABLE IN FUTURE NEGOTIATIONS AND FUTURE CONTRACT NEGOTIATIONS. SIMPLY IN COMPARISON AND DOING JUST A LITTLE BIT OF NOT. NOT A WHOLE LOT, BUT JUST A LITTLE BIT OF RESEARCH ON THE INTERNET. THERE'S A LOT MORE INVOLVEMENT WITH THE MUNICIPALITY TO HELP, YOU KNOW, OR TO BE INVOLVED IN THIS NEGOTIATION NEGOTIATIONS SO THAT THE CITIZENS OF GALVESTON HAVE SOMEWHAT OF A REWARD FOR WHAT WE AS A COMMUNITY HAVE TO SACRIFICE FOR THAT ECONOMY DRIVER. SO, YOU KNOW, THAT'S SOMETHING THAT, YOU KNOW, IS IMPORTANT TO ME. AND IT'S IMPORTANT IN THIS POSITION THAT WE HAVE SOME KIND OF AN ADVOCATE. THIS IS A, YOU KNOW, I BRING IN THE CITY AND WE'RE HELPING THE CITIZENS. AND AND I REALLY HOPE THAT IF YOU'RE REAPPOINTED AND THE OTHER POSITION FEEL THAT WE HAVE TWO ADVOCATES THAT SAY, HEY, LOOK, WE NEED TO REWARD THE CITIZENS THAT ARE, YOU KNOW, THEY'RE DEALING WITH US EACH AND EVERY DAY. RIGHT. DURING IN AND OUT. IS THERE ANY CONTRACT THAT YOU HAD SPECIFICALLY? OH, NO. I MEAN, YOU KNOW, MOST ARE IN PLACE, RIGHT. BUT ANY FUTURE CRUISE CONTRACT NEGOTIATION. YEAH, YEAH. OR LEASE AGREEMENTS OR THAT KIND OF THING, YOU KNOW. NEW, NEW CARGO, NEW CARGO LINE COMING IN AND, YOU KNOW. RIGHT. I THINK, YOU KNOW, I SPOKE TO, YOU KNOW, JUST FOR INSTANCE, WITH MSC, YOU KNOW JUST A RANDOM DINNER WITH, WITH THE REPRESENTATIVE THAT WAS IN TOWN DURING THAT TIME. [00:50:01] HE SAID IT'S VERY COMMON FOR THE CITIES TO COME INTO PLAY AND THAT THAT THEY GET CUT IN ON THAT NEGOTIATION SO THAT IT'S NOT ALL HEADED JUST TO THE PORT, THAT IT'S ALSO SHARED THROUGHOUT THE COMMUNITY THAT, YOU KNOW, THAT'S SERVING THAT INDUSTRY. THAT GOES OUT TO WHAT DAVID SAID AS WELL. A FEW MEETINGS BACK, YOU SAID THAT WE'RE IN CHARGE OF SOME OF THE BEST REAL ESTATE IN THE WHOLE ISLAND, WHICH YOU'RE EXACTLY RIGHT. AND I THINK TO CRAIG'S FANCY. CRAIG DOES A VERY GOOD JOB OF ANY TIME SOMETHING STARTS. HE, YOU KNOW, AS MAYOR, HE SPEAKS UP AND HE DOES A GOOD JOB OF IT. I THINK THAT SHOULD CONTINUE. AND I THINK IT WILL CONTINUE. NO MATTER WHO, IF IT'S WHOEVER IS OUR APPOINTED LIAISON. BUT YEAH, ANY MAJOR CONTRACT, I'D SAY LET'S HAVE A JOINT MEETING AT THAT POINT, YOU KNOW, BEFORE YOU SIGN THE FARM AWAY, LIKE LIKE YOU SAID. SO THERE'S NO SURPRISES. YOU'RE NOT FEELING LIKE YOU'RE HAVING TO SIGN ON THE DOTTED LINE. AND I THINK TOGETHER IT MAKES US A STRONGER NEGOTIATING TOOL. RIGHT? YEAH. IT'S NOT JUST US. IT'S US AND THE CITY. THAT'S A PRETTY BIG HAMMER, YOU KNOW. EXACTLY. VERY IMPORTANT. ANY FURTHER QUESTIONS? I HAVE A QUICK ONE. THERE'S THE LINEUP PLAYING THIS WEEKEND. OH, I'M OFF SATURDAY BECAUSE THE KIDS ARE GOING BACK TO SCHOOL SO WE DON'T HAVE TO LEAVE THE HOUSE. YEAH. OH, AND THE BAND WILL BE PLAYING, I THINK, FOR THE. THAT'S ANOTHER THING WITH THE BIG CELEBRATION GOING ON. I WILL BE DOING MY SERVICES FOR FREE, OF COURSE, BUT WE'RE LOOKING FORWARD TO THAT. IT'S GOING TO BE REALLY BIG. BOB, YOU MENTIONED EARLIER ABOUT AUDITS AND THE IMPORTANCE OF AUDITS AND THE THE REPORT HAS AN ANNUAL AUDIT FOR FINANCIAL AND OUTSIDE AUDIT, BUT IT HASN'T BEEN AUDITED BY THE CITY IN THE LAST COUPLE OF YEARS FOR PROCESSES AND CONTRACTS AND THOSE KIND OF THINGS. WHAT ARE YOUR WHAT ARE YOUR THOUGHTS ON THAT? BRINGING THE PROCESS. BRING IT ON. I MEAN, DO WE HAVE THE RIGHT PROCESS IN PLACE? IF WE HAVE AN AUDIT IN THE LAST TWO YEARS, WE SHOULD PROBABLY SET UP A, YOU KNOW, A BIANNUAL AUDIT OR WHATEVER YOUR AUDITING AND BIDDING METHODS ARE. WE SHOULDN'T BE IN LINE WITH THAT. I TOTALLY AGREE WITH THAT. AND YEAH, I WOULD OUR FINANCIAL DEPARTMENT IS IS IS REALLY, I THINK, YOU KNOW, ANYTIME WHETHER JIM OR RICHARD ASKED HIM FOR VERY SPECIFIC, DETAILED NUMBERS. BY THE END OF THAT MEETING, WE USUALLY HAVE THEM. AND WE'VE, WE'VE GONE TO A SET OF SPREADSHEETS THAT TAKE THE WHOLE TABLE. RIGHT. CRAIG. YEAH. ONE PAGE, YOU KNOW, AND I THINK THE MORE OF THAT YOU DO ON THE FRONT END, THE I DON'T SAY YOU STILL DON'T HAVE TO DO AN AUDIT. YOU ALWAYS HAVE TO DO AN AUDIT. BUT IT MAKES THE AUDIT PROCESS MUCH EASIER AND UNDERSTANDABLE, ESPECIALLY IN A TIME OF UNPRECEDENTED GROWTH AND CONTRACTION. EXACTLY, EXACTLY. YEAH. WHAT ARE WE DOING IN-HOUSE? HOW MUCH MONEY IS IS GIVEN TO US FEDERALLY BY THE STATE? THE CITY? WHAT? HOW MUCH MONEY DO WE HAVE TO GIVE THE CITY FOR PARKING AND THAT KIND OF THING? YEAH, YEAH, YEAH. AND YOU KNOW, YOUR PREVIOUS ANSWER THERE, I WAS KIND OF I WAS KIND OF THINKING ABOUT AND INTERVIEWING HIM FOR THE GALVESTON HOUSING FINANCE CORPORATION. I'M NOT, I'M NOT, I'M NOT. IT'S NOT ENOUGH FOR THAT ONE. BUT IN BACK OF YOUR MIND FOR SURE. THANK YOU. COUNSEL. THANK YOU. WILLIE, THANK YOU VERY MUCH. THANK YOU GUYS. THANK YOU FOR SERVING. AND THANK YOU ALL FOR TAKING THE TIME. THANK YOU. THANK YOU. YOU'RE A GREAT BOARD MEMBER. I APPRECIATE IT. THANK YOU. Y'ALL HAVE A GOOD ONE AND A GREAT DRUMMER AND SINGER, TOO. MR. STEVENSON COMING IN. STEVENSON WAS HERE FOR THE FIRST INTERVIEW THROUGH IT, BUT I VISITED WITH JANELLE. WE HAD HER STEP OUT SO THAT SHE COULD. GOOD MORNING. MISS STEVENSON, HOW ARE YOU? GOOD. ARE YOU? I'M FINE. I'M SO HONORED TO BE HERE. WE'RE SO HONORED TO HAVE YOU. THANK YOU, MISS TEEN COUNCIL. IT'S LIKE A DREAM OF MINE. I NEVER KNEW I'D DO THIS. THERE YOU GO. MY RESUME. IT'S TWO PAGES. WE'LL GIVE YOU A COUPLE OF 3 OR 4 MINUTES TO INTRODUCE YOURSELF, AND THEN WE'LL OPEN IT UP FOR QUESTIONS. AND WELL, MY NAME IS DONNA STEVENSON. I'M A RESIDENT OF GALVESTON, TEXAS. I'M VERY PROUD OF THIS CITY. AS A MATTER OF FACT, I REPRESENTED GALVESTON IN THE WORLD CHAMPIONSHIP OF PUBLIC SPEAKING A NUMBER OF YEARS AGO. [00:55:01] OF COURSE, IT'S DEEP SECRET. NOBODY KNOWS ABOUT IT. THAT'S FROM TOASTMASTERS EXPERIENCE, WHICH I'VE BEEN A MEMBER FOR MANY YEARS. MY RESUME IS DATED. IT HAS A LOT OF YEARS OF WORK. GOODNESS, I COULDN'T GIVE YOU MY WHOLE RESUME. I'VE BEEN WORKING SINCE I WAS EIGHT YEARS OLD, SO I HAD TO CUT IT OFF. BUT I HOPE THAT YOU WILL FIND THAT MY MY EXPERTISE WITH MY PREVIOUS EXPERIENCE, BECAUSE I CANNOT GIVE YOU THE EDUCATION YOU MIGHT WANT. BUT I HAVE OTHER THINGS TO OFFER IN. IN EXCHANGE OF THAT, MY EXPERTISE, MY EXPERIENCE, MY JUST DOWN TO EARTH, GRITTY KNOWLEDGE OF WHAT IS NEEDED AND WHAT WHAT TO DO WITH LEGAL AUDIT, RECONCILIATIONS, ACCOUNTING, BOOKKEEPING, CUSTOMER SERVICE INTERACTIONS. JUST ALL OF IT. AND THAT'S WHY I APPLIED, IS BECAUSE I SENSED THAT MY CITY NEEDED MY HELP. AND SO THAT'S WHY I'M HERE, TO OFFER MY HELP. GOOD TO HEAR. AND THANK YOU FOR DOING THAT I APPRECIATE IT. COUNCIL. LET'S OPEN IT UP TO QUESTIONS FROM THE STATEMENTS, PLEASE. ANY PARTICULAR QUESTIONS, BOB? WHAT ARE YOUR THOUGHTS ON HOW TO BALANCE PORT OPERATIONS BETWEEN CRUISE OPERATIONS AND CARGO OPERATIONS AND THEN LIKE WATERFRONT DEVELOPMENT, ATTRACTIONS AND THINGS TO BALANCE THEM? AND THE LAST ONE WAS THE THINGS THAT ARE NOT CRUISE OR CARGO, THINGS THAT ARE, YOU KNOW, LIKE THE HARBOR HOUSE HOTEL AND THE ATTRACTIONS TO THE WATERFRONT ATTRACTION TO ME. WELL, I SEE, I KNOW THAT, Y'ALL. I KNEW THAT YOU HAD MADE A, DECISION, A PREVIOUS DECISION THAT HAS NOW CHANGED WITH FERTITTA, WHICH IS A SHOW THAT KIND OF GONE THROUGH BECAUSE I THINK THAT HE WOULD HAVE BEEN AN EXCELLENT SOLUTION. SO SINCE WE DON'T HAVE THAT, CAN WE GO SOMEWHERE ELSE LIKE THE MITCHELL FOUNDATION? I DON'T KNOW FOR SURE, BUT I WONDERED IF WE CAN'T USE ONE THAT HAS THAT SOLUTION TO TAKE CARE OF THE PIER, TAKE CARE OF THE ADVERTISING, TAKE CARE OF OF FOR THE BATTLESHIP, BECAUSE THAT'S GOING TO BE COMING IN AS A HUGE DISTRACTION TO THE CRUISE LINES. AND I KNOW THAT A CRUISE LINER SO HAS ALREADY TURNED AWAY SOME BUSINESS IN 2027. THEY'RE NOT GOING TO BE GOING TO BE COMING HERE. SO WE NEED TO GET TO THE BOTTOM OF THAT TO STOP THAT AND CUT THAT OFF. WHETHER IT'S FINANCIAL OR IF IT'S A BATTLESHIP OR SOMETHING THAT MADE THEM CHANGE THEIR MIND, WE NEED TO WE NEED TO INVESTIGATE. SO I THINK THAT THE BALANCING OF IT IS THAT SOMEONE NEEDS TO TAKE A LOOK. THEY'RE EACH SUCH THREE SEPARATE ENTITIES, BUT WE'VE GOT TO LOOK AT THE COMBINATION OF THEM AND EVERYTHING IS GOING TO COME INTO PLAY. THE FINANCING, THE LEGAL, THE CONTRACTS, THE CUSTOMER SERVICE, EVERYTHING. BETWEEN ALL THOSE ENTITIES, IT'S GOING TO TAKE SOMEONE IN CHARGE. AND THEN SEPARATING THAT OUT, I BELIEVE, MIGHT BE A GOOD SOLUTION BECAUSE PERHAPS IT'S TOO MUCH FOR ONE PERSON. IF YOU WERE TO COME TO ME AND SAY, BALANCE THIS, I'D BE LIKE, OKAY, GIVE ME A YEAR. I'M JUST KIDDING. BUT IT'S GOING TO TAKE SOME DEDICATION. AND I HOPE THAT IN THE FUTURE I MIGHT BE ASSIGNED TO PART OF THIS PROJECT, BECAUSE I BELIEVE THAT WITH MY CONTRACT EXPERIENCE, MY LEGAL EXPERIENCE, MY AUDIT EXPERIENCE, I CAN ZERO IN ON PROBLEMS. I MIGHT NOT HAVE ALL THE SOLUTIONS, BUT IF IF WE CAN IDENTIFY THE REAL PROBLEMS, THEN I THINK WE CAN FIND THE SOLUTIONS. COUNCIL ANY OTHER QUESTIONS FROM MISS STEVENSON? MY GOODNESS. THANK YOU FOR TAKING YOUR TIME NOW AND COMING IN. THANK YOU FOR. I HOPE THAT THIS SHORT TIME DOESN'T MEAN YOU'RE OUT, BUT NOT NECESSARILY AN IS. AS I MENTIONED EARLIER, I THINK YOU I TALKED WITH THE GROUP AND KIND OF BUT THE TIME SPENT HERE DOESN'T HAVE NECESSARILY A BEARING ON THE RANKINGS OF THE [01:00:06] COUNCIL MEMBERS. SOME OF THOSE THAT ARE RANKED HIGH. WILL BE HERE FIVE MINUTES AND GONE, AND OTHERS THAT WILL BE HERE COULD BE HERE 25 MINUTES AND RANK LOWER. IT'S IT DOESN'T NECESSARILY MEAN THAT, BUT YOU'RE AT MOODY BANK, RIGHT? ARE YOU CURRENTLY AT MIT? I HAVE BEEN IN STEVENSON MY LAST. I WORKED FOR MR. MOODY SENIOR, MR. MOODY JUNIOR AND MOODY BANK AND MOODY INSURANCE GROUP. AND BECAUSE WE ARE A SMALL GROUP IN THIS SMALLER CITY, I WOULD NEVER DO THIS DURING AN INTERVIEW IN THE BIG CITY, EVER. BUT VICTOR PEARSON DID TELL ME THAT I COULD LIST HIM AS A REFERENCE, AND HE'S THERE. THAT'S GREAT. AND THAT MEANS A LOT. SO AND, YOU KNOW, IT'S SO NICE THAT YOU WANT TO SERVE. AND LET ME SAY THIS IF FOR WHATEVER REASON YOU'RE NOT APPOINTED TO THE BOARD OF SPORT. FEEL FREE TO CONTINUE TO COME BACK AND MAKE APPLICATIONS FOR ANY OF THESE OTHER BOARDS. ANOTHER THING COUNCIL DOES IS WE WILL SEE SOMEBODY WHO HAS TALENTS THAT MAY NOT GET APPOINTED. AND NEXT THING YOU KNOW, YOUR NAME IS PUT UP FOR A COMMISSION OR A BOARD HERE AT THE CITY. AND I THINK YOU WOULD FALL INTO THAT CATEGORY. SO THANK YOU FOR THAT. THANK YOU SIR. THANK YOU VERY MUCH EVERYONE. SO THANK YOU. GREAT DAY. AND YOU LOOK BEAUTIFUL. I LOVE YOUR SUIT. THANK YOU SO MUCH. WHEN I FIRST CAME IN HERE I SAID, Y'ALL ARE GOING TO HAVE TO INTERVIEW ALL THOSE PEOPLE. WE'RE GOING TO BE HERE ALL DAY. I. WON'T BE THE FIRST. I THINK MISS DAVID STEVENSON MAY BE RIGHT HERE ALL DAY, ALL NIGHT AND. ALL RIGHT. WE'RE FLIPPING RIGHT ALONG. WE'VE DONE FOUR PEOPLE IN AN HOUR OR SO HAVE CLEARED. GARZA COMING. LOOKING FOR A CUP OF COFFEE? SURE. CAN'T REMEMBER. HOW EXCITED ARE YOU? DUDE. I'VE ALREADY WRITTEN MISS STEVENSON'S NAME DOWN. IF SHE'S NOT APPOINTED TO THE WAR FOR SOME OTHER THINGS. HELLO. HOW ARE YOU TODAY? HEY, HOW ARE YOU ALL DOING? OH. JUST WONDERFUL. HAVE A SEAT, IF YOU WOULD. ABSOLUTELY. CLAIRE, I WANT TO THANK YOU. FIRST OF ALL, AS I MENTIONED EARLIER, ABOUT COMING AND PUTTING YOUR APPLICATION IN. GREATLY APPRECIATE THAT. WE'LL GIVE YOU A COUPLE OF MINUTES TO DO SOME INTRODUCTION TO THE BOARD HERE TO THE COUNCIL, AND THEN WE'LL OPEN IT UP FOR QUESTIONS. OKAY. IT'S GREAT. OKAY. ALL RIGHT, WELL AS YOU ALREADY KNOW, I'M CLAIRE PLAZA. I'M HAPPY TO BE HERE TODAY. A LITTLE BIT ABOUT MYSELF. I'M A MARITIME ATTORNEY. I STARTED OUT IN PRIVATE PRACTICE. A LITTLE OVER TEN YEARS AGO NOW, WHICH IS HARD TO BELIEVE. I STARTED OUT IN INSURANCE DEFENSE WORK. ON THE MARITIME SIDE FOR A FIRM IN HOUSTON. AND THEN I MOVED TO AN IN-HOUSE CLAIMS COUNSEL ROLE WITH AN INTERNATIONAL GROUP. AND I INSURER. SO I GOT TO ASSIST OUR CLIENTS AND REALLY DIG INTO CLAIMS FROM AN INSURER PERSPECTIVE, IN THE UNDERWRITER PERSPECTIVE. AND THEN FOLLOWING THAT, I WAS IN-HOUSE COUNSEL FOR A CREW TRADING HOUSE. SO I GAINED A LOT OF EXPERIENCE WITH CHARTERER WORK VESSELS, INTERNATIONAL MARITIME TIME. TRANSPORTATION. CRUDE AND REFINED PRODUCTS. TRANSPORTATION OF ALL THOSE ITEMS AND KIND OF ALL OF THE ISSUES THAT COME ALONG WITH IT. AND THEN FOLLOWING MY TIME WITH THE TRADING HOUSE, I JOINED THE COMPANY WHERE I AM NOW, WHICH IS LOCKED IN AND IT IS A BROKER. SO NOW I BASICALLY ASSIST ALL OF OUR CLIENTS ON THE MARINE SIDE THAT HAVE MARINE PLACEMENTS WITH THEIR MARITIME CLAIMS, AND THAT RANGES REALLY A BROAD RANGE OF THINGS ACROSS THE BOARD, FROM WHOLE MACHINERY MATTERS FOR CRUISE LINES AND AUVS FOR VARIOUS COMPANIES MER MARINE, MARINE WORK DEALING WITH SMALLER MARINAS AND LARGER MARINAS. YOU KNOW, REALLY JUST KIND OF ACROSS THE BOARD IN PERSONAL INJURY, EVERYTHING THAT COMES THROUGH THE, THROUGH THE CHUTE SOMEHOW FINDS ME. SO IT'S VERY ENTERTAINING. IT'S GOOD WORK, I LIKE IT. VERY GOOD. WE'RE GLAD TO HAVE YOU HERE. LET'S OPEN IT UP FOR QUESTIONS. MARIE. SO, WHAT MADE YOU DECIDE TO APPLY FOR THE WAR SUPPORT? [01:05:02] YEAH, I THINK I HAVE TO PROBABLY BACKTRACK A LITTLE BIT. AND I DON'T WANT TO GET TOO CAUGHT UP IN THE WEEDS AND GIVE YOU MY WHOLE LIFE BACKGROUND HERE. BUT MY FAMILY AND I WE DECIDED TO MOVE TO GALVESTON FULL TIME A LITTLE OVER TWO YEARS AGO, AND WE JUST ABSOLUTELY LOVE THE ISLAND. WE LOVE THE CITY. WE LOVE THE PORT. MY KIDS LOVE IT. MY MY HUSBAND AND I ARE BOTH IN THE MARINE INDUSTRY. SO IT'S REALLY SOMETHING THAT'S NEAR AND DEAR TO MY HEART. OBVIOUSLY, LIVING HERE AND BEING A PART OF THE MARINE INDUSTRY, I'VE BEEN ABLE TO SEE THE LEVEL OF GROWTH THAT'S GOING ON AND ALSO THE POTENTIAL FOR ALL THE ADDITIONAL GROWTH, WHETHER IT BE FROM AN INFRASTRUCTURE PERSPECTIVE OR, YOU KNOW, ADDITIONAL CRUISE LINES COMING IN. POTENTIAL FOR NEW WORK IN THE FUTURE ALONG THE LINES OF CARGO OR DEVELOPMENTS ON PELICAN ISLAND. SO TO ME, IT'S A VERY EXCITING TIME TO TRY TO GET INVOLVED AND HOPEFULLY LEND MY MY SKILL SET TO THE WHARVES BOARD. I THINK THAT'S ANOTHER BIG PIECE OF THE PUZZLE THERE IS THAT I'VE I'VE HAD A BROAD RANGE OF EXPERIENCE AND A LOT OF DIFFERENT PERSPECTIVES IN THE MARINE INDUSTRY, AND I KIND OF JOKINGLY SAY, I THINK I'M, I THINK I'M AT THE END OF IT NOW. I'VE SEEN IT FROM THE LITIGATION SIDE, THE INSURER SIDE, THE THE ACTUAL IN-HOUSE COUNSEL SIDE, AND NOW THE BROKER PERSPECTIVE HELPING OUR CLIENTS. SO SO HOPEFULLY I CAN BRING SOME, SOME SKILL SET TO HELP. VERY GOOD. ANY OTHER QUESTIONS, COUNSEL? YES. WHERE DID YOU PRACTICE OR WHAT? GENERAL AREA OUTSIDE OF GALVESTON. SO I WAS IN HOUSTON. I WENT TO LAW SCHOOL IN HOUSTON AND THEN WAS WITH A FIRM IN HOUSTON. THE WORK THAT I DID. IT WAS RANGING FROM RECREATIONAL BOATING. EVEN ALL THE WAY UP TO CONROE AND THEN DOWN INTO GALVESTON AREA. TUG AND BARGE OPERATIONS. ALL SORTS OF THINGS IN BETWEEN, KIND OF ALL OVER THE PLACE, BUT PRIMARILY ALL GULF COAST REGION AND A LOT OF TEXAS AND OFFSHORE WORK AND LAW SCHOOL WAS SOUTH TEXAS COLLEGE OF LAW IN DOWNTOWN. YES. YES. DAVID. SO THE THE PORT IS UNDERGOING A MASTER PLAN RIGHT NOW. THEY HAD A OPEN HOUSE LAST NIGHT, AND I HOPE YOU HAD AN OPPORTUNITY TO GO. I DID, IT WAS GREAT. AND SO ONE OF THE QUESTIONS THAT HAS BEEN POPPING UP QUITE A BIT IS THAT, YOU KNOW, HOW DO YOU BALANCE THE SIGNIFICANT GROWTH IN CRUISE BUSINESS AND THE IMPACT THAT IT HAS TO OUR INFRASTRUCTURE AND OUR RESIDENTS? AND THEN IS THERE A LIMIT TO THE VOLUME OF OF CRUISE TRAFFIC AND VISITORS? SURE. I THINK I THINK IT'S IT'S A TOUGH QUESTION, BUT NOT SOMETHING THAT'S, YOU KNOW, UNABLE TO BE ANSWERED. I THINK BASED ON THE KNOWLEDGE THAT I CURRENTLY HAVE, I THINK THAT REALLY THE THE LIMIT AND BALANCE WITH THE CRUISE INDUSTRY AND THE LIMIT OF POTENTIALLY CRUISE PASSENGERS AND CRUISE LINES COMING IN, I THINK IT REALLY HINGES ON WHAT'S BEING DONE TODAY IN TERMS OF DEVELOPING THE INFRASTRUCTURE AND THE PLANS THAT ARE BEING PUT INTO PLACE, WHETHER THAT BE TRAFFIC OR JUST FURTHER DEVELOPMENT OF THE ACTUAL WATERFRONT OF THE PORT. I THINK SO MUCH OF THAT ANSWER REALLY HINGES ON WHAT CAN BE PUT INTO PLACE NOW. OKAY. THANK YOU. VERY GOOD. I GOT ONE MORE. DID YOU KNOW TOM FITZHUGH? I DID KNOW TOM FITZHUGH. YES. MY FAVORITE PROFESSORS AT A&M. I HAVE HEARD THAT MANY TIMES. AND SMALL WORLD. SO NOW MOVING INTO THE MARITIME LEGAL FIELD. IS IT STILL TRUE THAT A SHIP IS NOT SEAWORTHY WITHOUT AN ICE CREAM SCOOP? WITHOUT AN ICE CREAM SCOOP? WELL, YOU KNOW WHAT? I'LL BE VERY FRANK WITH YOU. I DON'T KNOW THE ANSWER TO THAT QUESTION, BUT I THINK THE ANSWER SHOULD BE YES, BECAUSE WHY SHOULDN'T EVERYONE HAVE ICE CREAM IN AN ICE CREAM? SO. EXACTLY. VERY GOOD. BOB, YOU WERE AT THE MASTER PLAN EVENT, I GUESS, LAST NIGHT. SO, YOU KNOW, THE THE THE PORT IS REALLY KIND OF A OPERATES ON A THREE LEGGED STOOL, SO TO SPEAK, OF CARGO CRUISE AND THEN THINGS THAT ARE NOT CARGO AND CRUISE WHICH KIND OF REFER TO THE, YOU KNOW, ATTRACTIONS AREA, I GUESS. WHAT ARE YOUR THOUGHTS ON THE DEVELOPMENT OF THAT WATERFRONT AREA? THAT WOULD BE ROUGHLY FROM FISHERMAN'S WHARF. NOW, WHEN THE BATTLESHIP GETS THERE ALL THE WAY DOWN TO THE BATTLESHIP. YOU KNOW, I THINK I THINK THE DEVELOPMENT OF IT IS THE PLANS THAT I HAVE SEEN SO FAR LOOK GREAT. THEY LOOK FANTASTIC. YOU KNOW, I THINK PERSONALLY, I THINK WITH THE INFLUX OF TOURISM. MAKING IT USER FRIENDLY AND ACCESSIBLE AND ALMOST A POINT OF INTEREST IS REALLY GREAT. I KNOW, SPEAKING FROM YOU KNOW, JUST MY, MY OWN PERSONAL FEELINGS ON THIS AND [01:10:01] THEN ALSO MY FAMILY. THEY JUST WANT TO BE NEAR THE WATER. THEY WANT TO SEE IT. THEY WANT TO BE ABLE TO BE A PART OF IT. SO I THINK FINDING WAYS TO INCORPORATE THAT IS IS REALLY IMPORTANT. YEAH. OKAY. THANKS. ANY FURTHER QUESTIONS? YES. SO IN IN YOUR INDUSTRY YOU'VE HAD A LOT OF INTERACTION WITH SEVERAL PORTS. HAVE YOU FOUND ONE THAT IS SIMILAR TO OUR SITUATION OR OUR OPPORTUNITY? HAVE YOU FOUND A COMMUNITY THAT A COMMUNITY THAT IS KIND OF LOOKING FOR AN IDENTITY TO INCORPORATE WITHIN EACH OTHER, THE COMMUNITY AND THE BOARD. YOU KNOW, I HAVE TO BE HONEST. THE PORTS IN THIS REGION ARE A LOT DIFFERENT FROM GALVESTON, I THINK. GALVESTON IS UNIQUE. I THINK IT'S UNIQUE IN THAT IT IS IT'S A IT'S A TOURIST DESTINATION, BUT ALSO A THRIVING SEAPORT. AND IT'S REALLY THE HEART OF THE ISLAND AND HAS BEEN FOR ALMOST 200 YEARS NOW. SO TO COMPARE IT TO OTHER PORTS IN THE AREA, HOUSTON IS IT'S IT'S SO DIFFERENT. IT'S SO MASSIVE. AND IT'S IT'S NOT A FAMILY FRIENDLY TYPE ENVIRONMENT. TYPICALLY, I'VE SPENT SOME TIME IN THE PORT AND EVEN TAKING THE MV SAM HOUSTON TOURS UP AND DOWN THE PORT. AND IT'S NOT TYPICALLY A, IT'S NOT A, IT'S NOT THE TYPICAL FAMILY DESTINATION. FREEPORT VERY, VERY SIMILAR, VERY INDUSTRIAL. SO UNFORTUNATELY I CAN'T REALLY COMPARE IT TO ANYWHERE ELSE. AND I THINK THAT'S ACTUALLY A REALLY GOOD THING. AND I THINK THAT'S A GREAT THING. LOOKING TO THE FUTURE IN TERMS OF THE DEVELOPMENT, BECAUSE I THINK GALVESTON HAS THE ABILITY TO CREATE A REAL NICHE AND A REAL DRAW, WHETHER THAT BE WITH THE TYPE OF CARGOS THAT ARE EVENTUALLY VIEWED IN COMING IN HERE. YOU KNOW, HOUSTON AND FREEPORT HAVE A LOT OF OVERLAP. HOUSTON AND BAYPORT WITH THE CONTAINERS HAS A LOT OF OVERLAP. SO I THINK, TO ANSWER YOUR QUESTION, VERY SHORT TERMS, I CAN'T COMPARE IT, BUT I THINK THAT'S A GOOD THING. YEAH. YES. BOB, YOU JUST KIND OF ANSWERED MY QUESTION AGAIN IN A DIFFERENT WAY. YOU SAID I WANT TO POINT THIS OUT. YOU SAID YOUR FAMILY IS ATTRACTED TO THE WATERFRONT. WELL, AND ONE OF THE REASONS IS, I THINK, IS THAT IT'S ACCESS TO A WORKING WATERFRONT. THINGS THAT ARE GOING UP AND DOWN THAT SHIP CHANNEL ARE JUST SPECIALTY OUT EVERYTHING. THAT'S WHY PEOPLE WANT TO COME THERE AND SEE THAT. YOU CAN SEE WHAT'S GOING ON AT THE WATERFRONT, ALL THE WAY UP AND DOWN ON NORTH SOUTH STREETS. YOU KNOW, FROM, YOU KNOW, 21ST, 25TH STREET. ABSOLUTELY. THERE'S NOTHING THAT MAKES ME MORE EXCITED. I GET A LITTLE BIT NERDY ABOUT MARITIME STUFF, BUT WHEN I LOOK DOWN ONE OF THE STREETS IN A STREET THAT I COMMONLY TAKE 27TH OR EVEN LOOKING DOWN, KEPNER, WHEN YOU LOOK DOWN THOSE STREETS AND YOU CAN ACTUALLY SEE WHERE THE WATER BEGINS AND YOU CAN SEE A VESSEL GO BY. I GET VERY EXCITED. SO FAR, SO GOOD. AS FAR AS I WANT TO THANK YOU. YOUR EXPERTISE AND YOUR BACKGROUND IS IS WHAT'S MADE FOR THIS BOARD. AND WE'LL SEE HOW THIS PLAYS OUT AS WE MOVE FORWARD THEN. OH WELL, THANK YOU FOR THE KIND WORDS. AND THANK YOU ALL FOR FOR YOUR TIME. I KNOW YOU'VE BEEN IN HERE FOR A WHILE TODAY. THANK YOU. THANK YOU. THANK YOU ALL. TAKE CARE. I'M 24. RANDALL MILLER. IT JUST LOOKS LIKE AN EXTENSION OF DOWNTOWN. YOU KNOW, IT'S LIKE A HOTEL AT THE END OF THE STREET. YES IT DOES. I LOVE SOMEBODY ON. I DON'T LIKE LOOKING ALL THE WAY FROM THE SEAWALL COURT. YEAH. OH, YEAH. YEAH. YOU WORK ON THE SEAWALL NOW. AND ESPECIALLY, LIKE, BETWEEN US. BECAUSE THEY HAD ICE CREAM. THOSE THREE AS FAR AS CONSTRUCTION SITES AND LASER LEVELING AND ALL THOSE THINGS LIKE YOU CAN ACTUALLY LIKE. NO, THEY DID SEE JUST HOW HIGH THE TILES COMPARE. YEAH. REALLY? LIKE A BIRD'S EYE VIEW OF WHERE AND HOW THIS ISLAND CAN FORM A LOT OF CONTOURS. LIKE WHEN THEY TALK ABOUT RAISING, YOU KNOW, THE RAISING OF THE ISLAND YOU HAVE, AND YOU CAN STAND THERE AND YOU NEED SOMETHING STRAIGHT AS AN ARROW, MAYBE THE GRID. AND YOU CAN SEE THAT GRADE JUST DROP OFF QUICKLY AND THEN JUST FLATTEN OUT. YEAH. SO THE ONLY HILL ON THE ISLAND IS CHERRY HILL. CHERRY HILL, THE HILLIER HILL. HAVE A CITY, SIR. GOOD MORNING TO YOU. GLAD TO HAVE YOU WITH US, MR. MILLER. PLEASURE TO BE HERE. THANK YOU FOR YOUR TIME. I APPRECIATE YOUR APPLICATION. GIVE YOU A COUPLE OF MINUTES TO INTRODUCE YOURSELF, AND WE'LL OPEN UP YOUR QUESTIONS. OKAY. RANDY MILLER, RANDALL MILLER IN THE OFFICIAL DOCUMENTS. RANDY MILLER, A RESIDENT OF GALVESTON, FIVE YEARS, LIVE IN HUNTINGTON BEACH. PALISADE PALMS A FEW MINUTES AWAY. VERY CONVENIENT IN TERMS OF LOCAL ACTIVITIES. MAYOR BROWN MENTIONED THAT PASSING THROUGH. SO MY WIFE AND I HAVE HAD THE PRIVILEGE OF VOLUNTEERING WITH GALVESTON HISTORICAL FOUNDATION. WE LOVE THAT. IT'S A GREAT ORGANIZATION. [01:15:02] THE MUSEUM. REMARKABLE TO THINK THAT THE LARGEST COLLECTION OF TEXAS MEMORABILIA IS HERE IN GALVESTON. SO LUNCH WITH THE CURATOR RECENTLY. CURRENTLY, I WOULD CLASSIFY AS RETIRED IN TERMS OF FULL TIME WORK. I DO SERVE ON THE BOARD OF A BUSINESS WC, ONE OF THE LARGEST PRIVATE EMPLOYEE OWNED BUSINESSES IN SOUTHWEST U.S. AND MY BACKGROUND, I BELIEVE IS ALIGNS WELL WILL WITH THE INTEREST OF THE WARS BOARD. BUT BEFORE GETTING INTO THAT, LET ME FIRST SAY THAT AS A RESIDENT OF GALVESTON, INVESTED IN THE COMMUNITY, A KEY INVESTED INTEREST IN THE VITALITY OF THE PORT AND IN TERMS OF BOARD REPRESENTATION, OF PARTICIPATION BY BACKGROUND, I BELIEVE, OR INCOMPETENT ALLIANCE. WELL, WITH CONTRIBUTING TO THE BOARD NOT ONLY IDENTIFYING OPPORTUNITIES FOR GROWTH, BUT ALSO NAVIGATING THROUGH RISKS THAT ARE EVER PRESENT IN BUSINESS, WHETHER IT'S PUBLIC ENTERPRISE, PRIVATE ENTERPRISE, THERE ARE ALWAYS OPPORTUNITIES, ALWAYS RISKS. AND SO IT'S IMPORTANT THAT WE ALL LOOK AT BOTH SIDES OF THAT SPECTRUM. THE OTHER COMMENT I WOULD MAKE REAL BRIEFLY IS THE PORT IS AN IMPORTANT ECONOMIC ENGINE TO THE COMMUNITY. AND, YOU KNOW, I'VE READ THE 7.3 BILLION ECONOMIC VALUE, THE 24,000 JOBS STATEWIDE, 120 EMPLOYEES AT THE PORT TODAY. BUT THE THE QUESTION I THINK THAT WOULD COME TO MIND FOR ME IS HOW CAN WE LEVERAGE THE PORT TO GROW MORE DELIBERATELY, AND WHAT ADDITIONAL INCREMENTAL IMPACT CAN THE PORT CONTRIBUTE TO THE COMMUNITY OF GALVESTON, WHETHER THAT'S JOBS, INFRASTRUCTURE, OPPORTUNITY, ALL OF THE THINGS HOLISTICALLY, ECONOMICALLY. OKAY. VERY GOOD. LET'S OPEN IT UP FOR QUESTIONS. COUNCIL. COUNCIL MEMBER. FRED, OUTSIDE OF THE CRUISE INDUSTRY. WHAT DO YOU THINK IS THE NEXT STRATEGIC INVESTMENT THE PORT SHOULD BE LOOKING INTO OR MAKING? OKAY, SO TWO COMMENTS IF I MAY TO THAT. ONE IS THE CRUISE INDUSTRY IS TREMENDOUS, RIGHT? MILLIONS OF PASSENGERS PASSING THROUGH EACH YEAR, MERCHANT MARINE TRAFFIC AS WELL. EACH OF THOSE FOOTPRINTS, IF YOU WILL, REPRESENTS AN ECONOMIC OPPORTUNITY, THEIR SPAN SHARE, CAPTURE THAT CAN BE ASSOCIATED WITH THAT. SO HOW DOES GALVESTON CAPTURE INCREMENTALLY MORE DOLLAR SPEND PER VISITOR IN TERMS OF PORT INVESTMENTS? PELICAN ISLAND, I THINK, IS A TREMENDOUS OPPORTUNITY. HOUSTON PARTICIPATES IN THAT. HOW DO WE ENGAGE AND HAVE A COOPERATIVE ASSESSMENT OF OPPORTUNITIES FOR FOR PELICAN ISLAND LINKED TO THAT? THE NEW BRIDGE AFTER THE BRIDGE RUNS INTO THE BRIDGE. IT'S A WHAT IF. RIGHT? WHAT IF PELICAN ISLAND IS DEVELOPED? THE BRIDGE IS GOING TO BE REDEVELOPED. IS THE BRIDGE CAPACITY SUFFICIENT TO ACCOMMODATE ANTICIPATED GROWTH? SO LOOKING AT ALL OF THIS HOLISTICALLY IN TERMS OF DIRECT INVESTMENT, THE EUROPE JUST AGREED TO PURCHASE $750 BILLION IN U.S. US ENERGY. THAT IMPLIES OPPORTUNITY FOR LNG. IT IMPLIES OPPORTUNITY FOR LPG. HOW CAN GALVESTON CAPTURE PART OF THAT SHARE OF INVESTMENT BEING GULF ATLANTIC? EASY ACCESS. THERE SHOULD BE OPPORTUNITY THERE. FRUIT AND GRAIN. CARGO DOWN TO ZERO. WIND TURBINE. MODERATING. YOU KNOW, WIND IS LOSING FAVOR, I THINK, AS A GREEN ALTERNATIVE. CERTAINLY IN THE CURRENT POLITICAL ENVIRONMENT. WHAT DOES THAT MEAN? ALL OF THAT HAS TO BE CONSIDERED. BUT I THINK THE CARGO LOADING FUEL, CARGO LOADING IS AN OPPORTUNITY. ANY OTHER QUESTIONS, COUNCIL? CAN YOU JUST SAY THAT YOU HIT IT ON THE LNG AND LPG? I MEAN, THAT WAS THAT WAS IDENTIFIED IN THE PORTS MASTER PLAN FOR THE NORTH SIDE OF THE CUT. AND YOU, THANK YOU FOR REMINDING US THAT. YEAH, THAT YOU'VE JUST HAD THAT BIG PURCHASE AND I BECAUSE I COMPLETELY FORGOT ABOUT THAT. BUT YEAH, THAT IS A SIGNIFICANT OPPORTUNITY. IF YOU LOOK AT UP AND DOWN THE GULF COAST OF THE INVESTMENT IN LNG, THAT IS STARTED WITH, WHAT, 20 YEARS AGO, RIGHT? IT'S MORE MASSIVE DOWN SOUTH. BUT, YOU KNOW, THAT OPPORTUNITY STILL EXISTS. GIVEN THE FACT THAT WE DO HAVE READY ACCESS TO DEEPWATER. YES. THANK YOU. THANK YOU VERY MUCH. SO, ANY FURTHER QUESTIONS, BOB? THE CRUISE INDUSTRY AROUND THE WORLD HAS BEEN GROWING UNPRECEDENTEDLY, ESPECIALLY IN GALVESTON. [01:20:01] RIGHT. SO REVENUES FROM FEES AND PASSENGERS AND PARKING INCREASE HERE EVERY YEAR. AND WE'VE BEEN USING THAT TO TO LEVERAGE CARGO CAPACITY, WHICH IS A REALLY GOOD USE OF IT. BUT AROUND THE WORLD, PLACES ARE HAVING TROUBLE WITH OVERTOURISM. AND I'M WONDERING HOW WE CAN. YOUR THOUGHTS ON HOW WE CAN BALANCE OF CRUISE GROWTH AND ITS IMPACT ON THE COMMUNITY AND ITS RESIDENTS? YOU KNOW, IT KIND OF IMPLIES THAT. DO WE? IS THERE A LIMIT IN GALVESTON TO HOW MANY TOURISTS WE CAN ACCOMMODATE. RIGHT. RIGHT. I THINK THAT'S AN IMPORTANT CONSIDERATION. SPAIN. FRANCE. OTHER OTHER COUNTRIES ARE DEALING WITH WHAT THEY CLASSIFIES OVER TOURISM, AND IN PART IS DUE TO THE SCALE OF THE SHIP THAT'S CALLING IN PORT. YOU KNOW, THE CRUISE SHIPS WERE SMALLER IN YEARS PAST. MEGA SHIPS TODAY BRING A TREMENDOUS BURDEN ACCORDING TO THE LOCATIONS THAT ARE CURTAILING ARRIVAL OF THE LARGER SHIP. SO THAT'S AN IMPORTANT CONSIDERATION FOR GALVESTON. IT'S STRIKING A FAIR BALANCE, RIGHT? IS WHAT IS A REASONABLE ALLOCATION OF PORT CAPACITY, CAPABILITY AND REVENUE TO CRUISE VERSUS OTHER MIXES OR USES THAT THE CITY SHOULD ANTICIPATE? IT'S LIKE ANY BUSINESS, IF YOU WILL, IN THE SENSE THAT THE BUSINESS DOESN'T WANT TO BE TOTALLY DEPENDENT UPON A SINGLE REVENUE STREAM BECAUSE IT'S TO PEAK. THE PEAK IS VERY WILD, RIGHT? IT'S LIKE IT'S LIKE CAPITAL SPEND. IT CAN BE VERY, VERY WILD. AND SO WHAT YOU STRIVE FOR IS A GOOD BALANCE OF ANTICIPATED, RECURRING, NORMAL DEMAND THAT CAN SOFTEN THE PEAKS THAT YOU SEE WITH THE SPIKES THAT ARE OCCURRING. SO ONE OF THE THOUGHTS, JUST RECENT THOUGHTS, RIGHT. AND IT WOULD NEED TO BE WORKED OUT, AND IT WOULD BE SUBJECT TO WHAT THE BOARD WOULD ANTICIPATE AS APPROPRIATE, IS THE PARKING REVENUE IS IMPORTANT. THERE'S A TREMENDOUS AMOUNT OF SQUARE FOOTAGE USED. WE HAVE CUBIC FOOTAGE AVAILABLE. SO HOW DO WE BETTER UTILIZE SPACE THAT'S AVAILABLE? WE CAN GO UP. WE DON'T SIMPLY HAVE TO GO. GO FLAT. WHEN WE THINK ABOUT THAT SHARED CAPTURE. SPEND THE DOLLAR. SPEND. HOW CAN THE CITY MAKE IT EASIER FOR TOURISTS ARRIVING FROM THE MAINLAND? SOMEONE MENTIONED WHEN YOU CROSS THE CAUSEWAY, YOU'RE IN A DIFFERENT COUNTRY AND GALVESTON LIFE IS A BIT SLOWER, WHICH WE LIKE AS AN ISLAND SOUTH IN TEXAS. YEAH, RIGHT. SO HOW CAN WE MAKE IT EASIER FOR TOURISTS TO COME TO GALVESTON? IT'S A QUESTION. NO PARTICULAR ANSWER AT THIS TIME. HOW CAN WE ACCOMMODATE A GREATER INFLUX OF TOURISTS? IS IT MORE HOTELS? IT'S MORE ATTRACTIONS. WHAT IS THE DRAW? TO COME TO GALVESTON? IF YOU'RE ON A CRUISE AND SPEND 1 OR 2 EXTRA DAYS BEFORE OR AFTER TO STAY HERE AND SPEND A LITTLE MORE TIME, A LITTLE MORE MONEY. I THINK ALL OF THOSE THINGS WOULD NEED EXPLORATION AND ANSWERING. THANKS. VERY GOOD. ANY FURTHER QUESTIONS? YES, BRO. BETWEEN YOU AND ANOTHER CANDIDATE, I FEEL LIKE I YOU KNOW, LITERALLY GOT A CONSULTATION ON IDEAS AND, AND JUST THINGS THAT THAT I JUST KIND OF HAVE OVERLOOKED. AND SO THANK YOU SO MUCH FOR YOUR EXPERTISE AND YOUR TIME TODAY BECAUSE IT'S THANK YOU. IT'S MADE A BIG DIFFERENCE ON SEVERAL POINTS. SO THANK YOU. THANK YOU VERY MUCH. THANK YOU. YOU'RE VERY WELL SPOKEN. AND CONTROLLING. THANK YOU FOR THAT AND APPRECIATE IT. HOPEFULLY WE'LL SEE HOW THESE THINGS WORKED OUT. IF FOR SOME REASON RANDALL, THAT YOU'RE NOT APPOINTED TO THE BOARD. FEEL FREE TO COME BACK AT OUR NEXT GO ROUND HERE. AND ALSO THINK ABOUT OTHER COMMITTEES. SOMEBODY LIKE YOURSELF, IF YOUR EXPERTISE IS GREATLY APPRECIATED. IT'S MUCH. YEAH. THANK YOU, EVERYONE, FOR YOUR TIME. WE WON'T. I CAN'T SAY I WON'T PERSONALLY CALL YOU AND SAY, HEY, WHAT DO YOU THINK ABOUT THIS? I WOULD BE HAPPY TO HAVE A CONVERSATION. THANK YOU. THANK YOU SO MUCH. I DON'T KNOW ABOUT ANYONE ELSE. CAN WE TAKE A FOUR MINUTE RESTROOM? TAKE. IT'S 1025. LET'S TAKE A FIVE MINUTE BREAK AND THANK YOU. THEN WE'LL START PLANNING COMMISSION. WE ARE BACK FROM OUR BREAK. WE JUST FINISHED OUR WARDS BOARD INTERVIEWS AND WE ARE NOW MOVING TO OUR PLANNING COMMISSION INTERVIEWS. OUR FIRST CANDIDATE IS JAMES BANKS. THOSE ARE REALLY GOOD. OH MY GOD. SHOULDER STILL TORN. OH, YEAH. IT'S STILL TORN. YEAH YEAH YEAH. [01:25:03] SURGERY. SEPTEMBER WIN. WELL. I HAVE IT IN MY CALENDAR. IT WAS LIKE SEPTEMBER 16TH OR SOMETHING. RIGHT. AND BASIL AND PAUL SCALA. SO. OH MY GOODNESS. GOOD MORNING. GOOD MORNING, MR. BANKS. THANK YOU FOR MR. BANKER SIR I APPRECIATE IT INVITING WHAT WE'LL DO. MR. BANKS, FIRST OF ALL, THANK YOU AGAIN FOR YOUR APPLICATION. AND WE'LL GIVE YOU A COUPLE OF MINUTES TO MAKE AN INTRODUCTION OF YOURSELF, AND THEN WE'LL OPEN IT UP TO QUESTIONS, SIR. OKAY. REAL GOOD. SHOULD I START NOW? IS ANYONE. YOU GO RIGHT AHEAD. YES, SIR. YOU'LL BE HERE SHORTLY. MY NAME IS JAMES BANKS. THEY CALL ME JIM. I DO, I, BUT I'M WITH THE EXCEPTION. I WASN'T BORN ON THE ISLAND. I WAS BROUGHT ON THE ISLAND. THERE YOU GO. IN 1942. SO I'VE BEEN AROUND A LONG TIME. YESTERDAY I WAS 84 YEARS OLD. WOW. HAPPY BIRTHDAY. CONGRATULATIONS. I'M STILL PRACTICING THE ENGINEERING SUITE. I'M A MECHANICAL ENGINEER. I DESIGN HVAC AND PLUMBING SYSTEMS EVER SINCE 1965. WOW. WELL, I GRADUATED FROM PRAIRIE VIEW A&M, WHICH IS PART OF TEXAS A&M. IN 1965. ALL MY PRACTICE. I'VE BEEN IN CALIFORNIA SINCE 1965. I JUST MOVED BACK TO THE ISLAND IN 2023. MY WIFE IS STILL HERE. MY WIFE IS CORNELIA. SHE'S AN EX COUNCIL MEMBER FROM 2000 TO 2008. YES. SO WE'VE BEEN AROUND. I'VE BEEN BACK, AS I SAID. I'VE BEEN BACK HERE NOW A YEAR AND A HALF. I'M STILL PRACTICING. I WORK FOR KAUFMAN ENGINEERS AT KAUFMAN THE ON THE INTERNET, AND I STILL PRACTICE WITH THEM. I WORK REMOTELY ON THE COMPUTER, AND I DO A LOT OF ZOOM BUT I'M STILL ACTIVE AND I'M STILL INVOLVED. I STILL WORK FOR THAT COMPANY PART TIME, REMOTELY. AND YOU'RE DOING SOMETHING RIGHT. I WOULD NEVER GUESS YOU WERE 84 YEARS, 87 YEARS OLD. YESTERDAY WAS 84 YEARS YOUNG. YEAH, YEAH, YEAH. WELL, LET'S OPEN UP TO QUESTIONS FOR MR. BANKS. YES. ANY QUESTIONS? COUNSEL? YES. SO, COUNSEL, WE HAVE REALLY LOOKED AT STARTING TO ESSENTIALLY TURN A NEW AGE OF DEVELOPMENT THAT WE HAVE REGULATIONS IN PLACE AND DEVELOPERS WANT TO ASK FOR THINGS. HOW DO WE BALANCE FROM A PLANNING PERSPECTIVE? HOW DO WE BALANCE THE WANTS OF THE DEVELOPERS, THE NEEDS OF OUR COMMUNITY, AND THE RESTRICTIONS THAT WE HAVE REGULATIONS THAT WE HAVE AT THE CITY? WELL, FIRST OF ALL, YOU'RE GETTING YOU'RE DEALING WITH DEVELOPERS AND CONSTRUCTION, AND I HAVE A LOT OF EXPERIENCE IN CONSTRUCTION. AS I SAID, I'VE BEEN IN THE BUSINESS IN 65 DESIGNING HVAC SYSTEMS MANAGEMENT AND WHAT HAVE YOU. YOU HAVE TO, IN OTHER WORDS, GET SOMEONE WHO HAS THE EXPERIENCE AND KNOWS THE CODE. I'M QUITE SURE THAT YOU HAVE BUILDING CODES. THE CITY OF GALVESTON HAVE CODES AS FAR AS WHAT YOU HAVE TO DO AS FAR AS FOLLOWING THE REQUIREMENTS AND THE REGULATIONS. YOU HAVE TO FOLLOW THOSE GUIDELINES. IN OTHER WORDS, I WAS I WAS A LITTLE CONCERNED ONE TIME SINCE I'VE BEEN BACK. YOU KNOW, I GET A LITTLE NOSY. MY WIFE IS A HANDICAPPED PERSON. I'M CONCERNED ABOUT HANDICAPPED CONDITIONS AND WHAT HAVE YOU. AND I WAS SURPRISED THAT, WELL, I'M NOT REALLY SURPRISED BECAUSE THE CITY OF GALVESTON IS SMALL. I'VE COME FROM A BIG CITY. I STILL WORK OUT OF OFFICE OUT OF LOS ANGELES, CALIFORNIA, WHEN I WORK IT REMOTELY IS THAT YOU HAVE EXPERTISE OF REVIEWING PLANS, REVIEWING WHAT YOU PROPOSE ON DOING IN THE CITY. THAT'S SOMETHING THAT YOU HAVE TO BE ABLE TO FOLLOW GUIDELINES. BUT SO BEING ABLE TO FOLLOW GUIDELINES THAT SET FORTH BY THE CITY IS ONE MAJOR THING THAT YOU NEED TO OBSERVE. AS FAR AS THE CONTRACTORS, WHOEVER IS GOING TO PROVIDE ANY KIND OF SERVICE IN THE CITY. VERY GOOD. BOB, WHAT IS IT PARTICULARLY ABOUT THE WORK OF THE PLANNING COMMISSION THAT ATTRACTED YOU? WELL, YOU WANT TO COME TO VOLUNTEER? WELL, I LOOKED AT ALL THE COMMISSIONS THAT YOU HAD, AND AS I SAID, I LOOKED THE ONLY THING THAT HAD. I'M FAMILIAR WITH CONSTRUCTION. SHOULD I SAY THAT IS THAT'S THE ONLY BOARD THAT I SAW THAT I WAS COULD BE OF SOME [01:30:06] SERVICE, I WOULD THINK WITH MY EXPERIENCE AFTER ALL THESE YEARS. AND THAT'S THE ONE I. I DIDN'T SEE ANYTHING. I WOULD REALLY LIKE TO BE IN THE BUILDING DEPARTMENT, BE ABLE TO SEE EXACTLY WHAT'S BEING SUBMITTED TO THE CITY IS BEING PROPOSED, AND MAKE CERTAIN THAT YOU HAVE GUIDELINES THAT YOU FOLLOW. THAT'S VERY IMPORTANT TO PROTECT THE CITY AND WHAT HAVE YOU. AND I KNOW YOU HAVE CODES. THE QUESTION IS, DO YOU HAVE SOMEONE TO MAKE CERTAIN THAT WHOEVER IS BUILDING IN THE CITY IS FOLLOWING THOSE GUIDELINES? YEP. PART OF THE ROLE OF THE PLANNING COMMISSION. AND YOU'VE GOT THREE FORMER PLANNING COMMISSIONERS HERE BOB BROWN, MYSELF AND THE MAYOR AS WELL. AND SO ONE OF THE THINGS THAT THAT WE FOUND IS THAT OFTENTIMES WE HAVE DEVELOPERS THAT ARE ASKING FOR VARIANCES. AND WHEN YOU START TO SEE THOSE SAME VARIANCES COMING UP OVER AND OVER AND OVER AGAIN. IT STARTS TO, YOU KNOW. THE LITTLE LIGHT GOES OFF AND SAYS, WELL, MAYBE THINGS NEED TO CHANGE A LITTLE BIT. RIGHT. AND SO PART OF THE ROLE OF THE PLANNING COMMISSIONERS IS TO BE ABLE TO SORT OF IDENTIFY THOSE TRENDS AND TO TRY TO OFFER UP SOLUTIONS THAT THAT WOULD MAKE APPROPRIATE DEVELOPMENT. I'LL USE THAT VERY CAREFULLY. APPROPRIATE DEVELOPMENT. EASIER ON THE ISLAND. WELL, WHEN YOU'RE TALKING ABOUT VARIANCE, THAT'S FROM A DEVELOPER STANDPOINT. THAT'S THE GUY. HE'S REALLY LOOKING FOR SOMETHING THAT HE CAN MAKE A CHANGE AND MAKE AN ADJUSTMENT AND ANYTHING THAT'S BENEFICIAL TO THEM, REGARDLESS ABOUT WHAT THE CITY. BUT THE CITY HAS TO PROTECT ITSELF, CORRECT. AND HAVE TO HAVE PEOPLE IN PLACE TO BE ABLE TO UNDERSTAND EXACTLY WHAT YOU CAN DO AND WHAT YOU CAN'T DO TO FOLLOW THE GUIDELINES YOU GOT. YOU. I'M QUITE SURE YOU HAVE GUIDELINES FOR THE CITY OF GALVESTON, AS WELL AS FOR THE STATE OF TEXAS DID YOU HAVE TO FOLLOW? THOSE ARE THE MOST IMPORTANT THINGS. SO BARRIERS CAN BE A LITTLE TRICKY, ESPECIALLY WHEN YOU'RE DEALING WITH CONTRACTORS BECAUSE THERE'S A REASON THEY'RE ASKING FOR THAT VARIANCE. RIGHT, RIGHT. AND A LOT OF CASES THOSE VARIANCES COULD COME UP WITH WHERE YOU'RE GOING TO HAVE A REQUEST. THEY CALL THEM REF EYES. SO REQUEST FOR A REQUEST FOR INFORMATION. BUT IN MY BUSINESS THAT'S A REQUEST FOR AN INCREASE. THEY WANT TO MAKE MORE MONEY YOU KNOW OFF THE PROJECTS MORE HAPPY SO THAT CERTAIN THINGS YOU HAVE TO WATCH OUT FOR COUNCILMAN ROBBINS. SO BEING VISITED LOS ANGELES SEVERAL TIMES AND THEY SEEM TO BE A MOVING TARGET ON WHAT COMES UP AS FAR AS PLANNING GOES WITH YOU SPENDING SO MUCH TIME IN LOS ANGELES AND NOW BACK IN GALVESTON, WHAT DO YOU SEE? SOME GOOD THINGS TO DO AND WHAT ARE SOME BAD THINGS WE DO WELL IS OUTSTANDING. I'M REALLY OBSERVING BECAUSE OF MY WIFE. WELL, RIGHT NOW, AS I SAID, I'M BACK. I DRIVING, MISS DAISY. THAT'S ALL I DO IS TAKE HER AROUND. SHE SHE'S WHEELCHAIR. YOU KNOW, SHE'S A VERY SPECIAL PERSON. I MEAN, SHE'S VERY SPECIAL TO ME. SO THAT'S GOOD. I, AS I SAID THE THING THAT I SEE HERE, AND I KNOW THE CITY IS VERY SMALL. THE THING THAT I SEE HERE IS REALLY CONCERNING IS THAT ABOUT THE HANDICAPPED WAS ONE THING. THE OTHER THING IS THAT VENTILATION OF COMMERCIAL BUILDINGS. I'VE DONE A LOT OF COMMERCIAL BUILDINGS. I'VE DONE A LOT OF SCHOOL WORK. AND VENTILATION IS VERY IMPORTANT. I MY WIFE ATTENDS AND REALLY CHAPEL CHURCH. AND I WAS ABLE TO LOOK AT THAT AIR CONDITION OF A LITTLE CONCERN. I WAS ABLE TO LOOK AT THE AIR CONDITIONING SYSTEM. IT WENT OUT AND HAD IT REPLACED. BUT THERE IS NO AIR OUTSIDE AIR GOING TO THAT SYSTEM. IT'S A 20 TON CAPACITY SINGLE ZONE UNIT. AND IF YOU IF YOU KNOW THE CODES, THERE HAS TO BE SOME KIND OF OUTSIDE AIR BEING INDUCED INTO THAT. BUT THAT UNIT DOES NOT HAVE ANY OUTSIDE AIR. I MADE IT. I MADE A LITTLE OBSERVATION OF THAT. I REPORTED IT TO THE TO THE PASTOR WHO LET ME KNOW WHAT HAPPENED. THEY CHANGED OUT THE AIR CONDITIONING UNIT, BUT THEY DIDN'T PUT AN OUTSIDE AIR. I UNDERSTAND THAT YOU HAD TO GET A PERMIT WHEN YOU'RE DOING ALL THAT, BUT THE INSPECTOR SHOULD HAVE BEEN ABLE TO PICK THAT UP. YOU GOT TO MAKE CERTAIN THAT YOU HAVE THE PEOPLE THAT'S CAPABLE OF PICKING UP STUFF THAT SAFETY WISE THAT YOU HAVE, YOU NEED. [01:35:02] SO THAT'S A CONCERN. I DON'T KNOW WHAT'S HAPPENING, BUT I UNDERSTAND YOUR BUILDING DEPARTMENT DOES NOT HAVE A SPECIALTY IN HVAC. THEY HAVE INSPECTORS THAT IN GENERAL TAKE THE BUILDING. WELL, SOME GENERAL ALL THEY'RE CONCERNED WITH. THEY KNOW ABOUT CONSTRUCTION, BUT THEY DON'T KNOW ANYTHING ABOUT VENTILATION. VENTILATION IS A REQUIREMENT ON ANY COLD. NATIONAL CODE. STATE OF TEXAS CODE. CALIFORNIA CODE IS DEFINITELY. THAT'S A CRITICAL POINT. SO HOW THEY PULL THE PERMIT AND HOW IT WAS IT WAS SIGNED OFF BY THE CITY I UNDERSTAND, NOT SURE. SO THAT'S SOMETHING YOU NEED TO TAKE A LOOK AT. WHAT WHAT YOU HAVE PEOPLE AROUND THAT'S ABLE TO DO THE WORK THAT'S REQUIRED PER CODE. ANY FURTHER QUESTIONS? I WAS JUST GOING TO SAY IT'S A PLEASURE TO SEE YOU AGAIN. WE'VE BEEN IN THE PAST. I SERVED WITH ARMENIA. BUT IF BY CHANCE YOU DON'T GET APPOINTED TO PLANNING, YOU SHOULD ALSO LOOK AT ZONING BOARD OF ADJUSTMENTS. YEAH, THAT'S BECAUSE THERE YOU HAVE TO HAVE YOU HAVE TO HAVE CREDENTIALS TO SERVE IN SPECIFIC AREAS. THERE IT'S LIKE THERE'S PLUMBING. THERE'S ENGINEER THERE LIKE YOU'RE REQUIRED TO HAVE. WELL THAT'S WHY ALL MY EXPERIENCE PRETTY MUCH IS CONSTRUCTION. AND YOUR SPECIALTY IS HVAC AND PLUMBING. CAN I HIRE YOU FOR A SEPARATE JOB TO LOOK AT ON AN ONGOING ISSUE? ABSOLUTELY. THERE'S SOME KIND OF ETHICS. YEAH. SO I WANT TO SAY TO MR. BANKS, THANK YOU FOR YOUR APPLICATION EXPERTISE LIKE YOU HAVE IS SO IMPORTANT TO THESE COMMITTEES, ESPECIALLY THE PLANNING COMMISSION, WHEN THEY DEAL WITH, DIRECTLY AND INDIRECTLY WITH SOME OF THESE ISSUES INVOLVING CONSTRUCTION. I WANT YOU TO TELL YOUR LOVELY WIFE. HELLO, IF YOU LIKE. YES, SIR. YES, SIR. A HUG AND A KISS FOR ME. THANK YOU, SIR, FOR BEING HERE. THANK YOU SO MUCH FOR THE WELCOME. THANK YOU. THANK YOU. BYE BYE. I'LL GIVE YOU A BUZZ TOMORROW ABOUT THAT HVAC. YOU DO THAT? WE DID NOT HEAR THAT. SHE'S NOT REQUESTING. NO, NO. HE'S REALLY. YEAH. HE'S GOT HE'S GOT WE HAVE MISS THE MANUAL MARY. MAN COUNCIL. WE HAVE MARY JANE LANCE COMING. SHE IS A REAPPOINTMENT. POSSIBLE APPOINTMENT. OKAY, FINE. TEN YEARS AGO. YES. THEY DIDN'T REQUIRE AN ACTUAL THING THAT HURTS THE MOST LICENSED HVAC, YOU KNOW. AS A BUILDER, YOU COULD SUBMIT YOUR OWN. SO I GOT TO KNOW OUR VALUES. I GOT TO KNOW, YOU KNOW, WHICH MANUFACTURERS OF WINDOWS WERE A LITTLE BIT EASIER TO GET PAST THAN THE OTHERS. AND YEAH, I'M HAPPY TO PASS IT ON FOR $350. THAT'S WHAT IT IS. SO HE'S BEEN DOING THAT FOR HE RETIRED FROM. GOOD MORNING, MISS LANCE. HOW ARE YOU? WELL, THANK YOU FOR YOUR PATIENCE. I APPRECIATE IT. GOT TO MEET THE PEOPLE IN THERE. THAT WAS FUN. WELL. THAT'S GOOD. THANK YOU FOR COMING BACK AND REAPPLYING AND REOPENING HERE. AND WE HAVE GIVE YOU ABOUT A COUPLE MINUTES FOR INTRODUCTION. THEN WE'LL OPEN IT FOR QUESTIONS. OKAY. I'M. MY NAME IS DOCTOR MARY JANE LANCE. I HAVE SERVED ON THE PLANNING COMMISSION FOR THE LAST THREE YEARS. I'M CURRENTLY THE VICE CHAIR. MY BACKGROUND. I HAVE 45 YEARS IN HR AND RISK MANAGEMENT. I WORKED IN MUNICIPAL GOVERNMENT WITH THE CITY OF TEXAS CITY, SO I UNDERSTAND MUNICIPAL GOVERNMENT WELL. I'VE ALSO LIVED ON THE WEST END FOR 17 YEARS AND IN BERMUDA BEACH, SO I UNDERSTAND THE PROBLEMS ON THE WEST END. I'M CURRENTLY LIVING IN THE CENTER OF THE ISLAND, SO I UNDERSTAND ALL THE PROBLEMS IN THE CENTER OF THE ISLAND. SO IT'S BEEN A. A FAST AND FURIOUS RIDE IN EDUCATION ON THE ELDERS AND THE COMPREHENSIVE LAND USE PLANS, AND WHAT'S PRECIOUS TO OUR COMMUNITY AND WHAT WE NEED TO DO FOR RESPONSIBLE GROWTH ON OUR ISLAND. SO THAT'S ME. VERY GOOD. LET'S OPEN IT UP TO QUESTIONS. COUNCIL. SO YEAH. SO, MARY JO, IT WAS A PLEASURE SERVING WITH YOU ON THE PLANNING COMMISSION. AND YOU'RE RIGHT, IT IS A LITTLE BIT OF A MOUTH OVER FIRE HOSE START. BUT I WILL TELL YOU THAT I WAS IMPRESSED WITH HOW QUICKLY YOU TOOK TO THAT AND STARTED MAKING SOME REALLY MEANINGFUL CONTRIBUTIONS. AND LIKE YOU SAID, THE THE KNOWLEDGE AND THE INSTITUTIONAL KNOWLEDGE THAT YOU GAIN FROM BEING ON THERE FOR THREE YEARS AND YOUR WILLINGNESS TO SERVE AGAIN IS GREATLY APPRECIATED. WELL THANK YOU. SO THANK YOU. SO IT'S NOT A QUESTION. [01:40:01] IT WAS MORE OF A COMMENT. MY APOLOGIES, BUT GOOD TO HEAR. VERY GOOD TO HEAR. ALEX. SO WE WE KICKED THE KICKED THE IDEA AROUND OF HAVING A JOINT MEETING WITH THE PLANNING COMMISSIONERS, AND IT'S MORE SO TO GET THE INPUT KIND OF, FOR THIS QUESTION. WOULD YOU SUPPORT A JOINT MEETING WITH CITY COUNCIL ON THE SECOND ONE IS THE SECOND PART IS HOW DO WE BETTER AND RESPONSIBLE GROWTH AND DEVELOPMENT, WHICH I THINK WE ALL KIND OF ARE PUSHING IN THAT DIRECTION TO START IT MORE. HOW DO YOU BALANCE THE NEEDS OF THE WANTS OF THE DEVELOPER, THE NEEDS OF THE COMMUNITY AND OUR REGULATIONS AND RESTRICTIONS THAT WE HAVE ON OUR BUILDING AND LAND DEVELOPMENT REGULATIONS. TO ANSWER YOUR FIRST QUESTION. MEETING WITH CITY COUNCIL IS A TREMENDOUS BENEFIT BECAUSE WE WORK REALLY HARD TO ENSURE THAT WE'RE LISTENING TO THE COMMUNITY AND LISTENING TO THE DEVELOPERS AND MAKING SURE OUR RECOMMENDATIONS ARE CONSISTENT WITH THE ELDERS. BEFORE WE MAKE ANY MOTIONS OR ANY DECISIONS ON THE PLANNING COMMISSION. AND THEN I DON'T KNOW IF YOU LOST WATCH THE LAST PLANNING COMMISSION MEETING, BUT ONE OF OUR COMMISSIONERS WAS A LITTLE FRUSTRATED SAYING THAT WE DID ALL THIS WORK ON THIS PROJECT. WE DID ALL THIS RESEARCH, BUT THEN THE CITY COUNCIL HAD A TOTALLY DIFFERENT VIEWPOINT ON THAT. SO I THINK IT WOULD BE VERY BENEFICIAL SO THAT WE'RE ALL HEADING IN THE SAME PATH TOGETHER. SO WE ALL HAVE THE SAME SHARED VISION, AND THAT WE'RE NOT SPENDING TIME ON THE PLANNING COMMISSION THINKING THAT WE'RE GOING DOWN THE RIGHT ROAD. AND IT'S NOT THE ROAD THAT YOU WANT US TO GO DOWN. SO I THINK THAT TO ANSWER YOUR FIRST QUESTION, I THINK THAT'S A HUGE PLUS. HUGE PLUS. WELL GO AHEAD. YOU HAD A SECOND PART. YES, A SECOND QUESTION. OKAY. THE SECOND QUESTION WAS ABOUT HOW DO YOU DEVELOP THE WANTS OF THE DEVELOPER, THE NEEDS OF THE COMMUNITY, AND OUR REGULATIONS AND RESTRICTIONS THAT WE HAVE FOR ELDERS AND BUILDING CODES. LET ME START WITH THE NEEDS OF THE COMMUNITY, BECAUSE ONE OF THE THINGS THAT I THINK IS MY RESPONSIBILITY AND ACTUALLY ENJOY DOING DURING OUR PLANNING COMMISSION MEETINGS IS I'M REALLY IN TUNE TO THE COMMENTS THAT WE GET FROM THE COMMUNITY, AS WELL AS THE COMMENTS FROM THE PUBLIC. NOW, WE CAN'T RESPOND TO THE PUBLIC, BUT WHAT I CAN DO IS AND WE HAD A COMMENT NOT TOO LONG AGO, AND IT WAS CLEAR THAT THE THE PUB THAT WAS BEING REQUESTED, THE HOMEOWNER DIDN'T UNDERSTAND BECAUSE THEY THOUGHT IT WAS GOING TO AFFECT THEIR PROPERTY AND IT REALLY WASN'T. SO I WAS IT GAVE ME A VOICE TO SAY ON RECORD. ASKED STAFF, WILL THIS AFFECT THE LOCAL COMMUNITY? CAN YOU TELL ME? AND THEN THERE WAS AN EXPLANATION. SO THAT WAY THE COMMENT FROM THAT HOMEOWNER GOT ANSWERED. BUT WE STILL STAYED WITHIN OUR RULES AND REGULATIONS. AND SO I THINK THAT'S REALLY IMPORTANT FOR THE COMMUNITY TO UNDERSTAND HOW THIS IS GOING TO AFFECT THEM AND TO BE ABLE TO AND AGAIN, PUBLIC HEARINGS, WE CAN'T RESPOND. SO USE THE SAME APPROACH WHEN SOMEBODY WHEN WE HAVE THE HUD COME UP AT THE COUNCIL LEVEL AND SOME OF THE SAME CONCERNS THAT WERE RAISED AT THE PLANNING COMMISSION. SAFETY. DOES THIS AFFECT THIS? AND I THINK IT'S A GOOD OPPORTUNITY TO ASK THE DEVELOPER THAT SPECIFIC QUESTION, HEY, IS THIS GOING TO AFFECT SAFETY? WE CAN ASK PLANNING DEPARTMENT IS THIS GOING TO AFFECT SAFETY. AND YOU CAN GET AN ANSWER AND ALLEVIATE THIS CONCERN AND ALSO ASK THAT STAFF BE AVAILABLE. WE HAVE THE FIRE CHIEF COME FOR SOME OF THE PROJECTS THAT COME BEFORE US, BECAUSE WE WANT TO MAKE SURE RIGHT NOW, I DON'T KNOW IF WE'RE LOOKING AT THE DEVELOPMENT ON THE ALLEYS AND WHAT'S SAFE AND WHAT'S NOT SAFE, AND WE DON'T WANT TO LIMIT DEVELOPMENT FOR PEOPLE THAT HAVE THE OPPORTUNITY, BUT WE DON'T WANT TO CREATE SITUATIONS THAT ARE FIRE HAZARDS OR. SITUATIONS FOR THE FIRE DEPARTMENT. SO AGAIN RESPONSIBLE GROWTH. YOU KNOW, YOU WANT TO MAKE SURE THAT YOU'RE NOT LIMITING WHAT A DEVELOPER CAN DO. BECAUSE OUR ISLAND NEEDS DEVELOPMENT. IT NEEDS GROWTH. IT NEEDS, YOU KNOW, TO CONTINUE TO RENEW ITSELF. AND FOR A LACK OF A BETTER WAY OF SAYING IT, BUT ALSO AND NOT BE STAGNANT, BUT DO IT RESPONSIBLY SO THAT WE'RE NOT CREATING SITUATIONS THAT AFFECT CURRENT HOMEOWNERS AS WELL. SO DOES THAT HELP, RIGHT? YEAH, VERY MUCH SO. BOB AND JIMBO KIND OF A FOLLOW UP QUESTION. I THINK SOMEBODY POINTED OUT THERE'S THREE PAST PLANNING COMMISSIONERS RIGHT HERE IN THIS ROOM. AND WHEN I WAS ON THE PLANNING COMMISSION, WE STRUGGLED WITH WITH PLANNED UNIT DEVELOPMENT OR PUDS APPLICATIONS. AND AND AS MUCH AS IT RELATES TO OUR UNDERSTANDING OF THEM AND THE CITY COUNCIL'S UNDERSTANDING OF THIS. SO OUR QUESTION IS, YOU'RE OFTEN ASKED TO APPROVE AN APPLICATION FOR A PLANNED UNIT DEVELOPMENT OR PUTT. SO WHAT'S YOUR UNDERSTANDING OF THE OF A PURPOSE? WHEN DO YOU UTILIZE IT? WHAT KIND OF CRITERIA ARE CRITICAL TO BEING ABLE TO ANALYZE IT? WELL, YOU KNOW, OUR ELDERS TELL US EXACTLY WHAT WE CAN DO IN SPECIFIC AREAS. AND WHEN I FIRST JOINED THE PLANNING COMMISSION, I TOOK THAT PART AND PRINTED ALL THOSE OUT FOR URBAN DEVELOPMENT. AND I DON'T KNOW IF YOU EVER SEE ME, I'M LOOKING THROUGH IT. YOU KNOW WHAT WE'RE ALLOWED TO DO? WHAT WE'RE NOT ALLOWED TO DO HERE. [01:45:03] AND THEN WHAT IS THE HOW IS THE PED GOING TO AFFECT IT? AND WE JUST HAD ONE THAT CAME RECENTLY THAT WAS HARD FOR ME. AND I MADE A COMMENT ABOUT IT BECAUSE THE AREA IS, WAS PROJECTED TO BE URBAN NEIGHBORHOOD DEVELOPMENT AND IT WAS A PUTT FOR A PARKING AREA, BUT IT HAD BEEN SITTING EMPTY FOR TEN YEARS. NOTHING HAD HAPPENED. AND THAT WAS A STRUGGLE, BECAUSE I KNOW THAT BASED ON THE COMPREHENSIVE LAND USE PLAN, THE GOAL WAS TO PUT MORE HOUSING IN THIS AREA. BUT IT DIDN'T HAPPEN. SO THOSE ARE HARD DECISIONS TO MAKE. HARD DECISIONS TO MAKE, DO WE? AND MAKING SURE, AGAIN, MEETING WITH CITY COUNCIL. IS THIS WHAT YOU WANT US TO DO? DO YOU WANT HOUSING IN THIS AREA? WHAT IS YOUR GOAL FOR THIS AREA? YOU KNOW, WE ONLY HAVE THE COMPREHENSIVE LAND USE PLAN TO KIND OF TELL US WHAT YOU WANT US TO DO, BUT I DON'T KNOW IF THAT ANSWERS YOUR QUESTION. I GUESS CONSIDERING ALL OF IT. AND AND TRY AND ASK STAFF. I MEAN, THE STAFF IS RIGHT THERE. SO WE WE CONSTANTLY ASK STAFF ABOUT, ARE WE ALLOWED TO DO THIS. IS THIS SOMETHING. IS THERE A RESTRICTION IN THIS AREA? HUDS ARE KIND OF ANOTHER NAME FOR VARIANCE. I MEAN YEAH IT WILL. SO YOU KNOW AND THAT'S THAT'S ALWAYS A THERE'S A THERE'S SOMEWHERE IN THERE THERE'S SOME SUBJECTIVITY TO THE ANALYSIS AND DECISION MAKING. AND IT'S IT'S TOUGH TO ABSOLUTELY HAVE TO GET ON THE SAME PAGE WITH EVERYBODY, YOU KNOW, BETWEEN THE PLANNING COMMISSION AND THE CITY COUNCIL AND EVERYBODY ON WHAT THEY'RE REALLY FOR AND HOW WE SHOULD USE THEM. AND THE EXAMPLE I GAVE, I KNOW WE NEED AFFORDABLE HOUSING ON THE ISLAND, AND IT WAS A REALLY HARD DECISION TO VOTE IN THE AFFIRMATIVE FOR CHANGING THAT ON THE BUD. BUT AGAIN, YOU HAVE THE DEVELOPER. NOTHING'S HAPPENING IN THIS AREA. IT WAS A GOOD PROJECT. IT'S AN EMPTY AREA. YOU KNOW, IT'S A IT'S ULTIMATE YOUR DECISION, NOT OURS. SO WE JUST MAKE RECOMMENDATIONS TO YOU ABOUT WHERE YOU CAN BE EVEN MORE SUPPORTIVE ON THAT LAST EXAMPLE, BECAUSE I THINK IT'S BEEN LIKE 40 YEARS THAT THAT, YOU KNOW, THAT CONCRETE JUNGLE HAS BEEN OUT THERE. YEAH. YEAH, IT WAS HARD. IT WAS HARD. YOU KNOW, I THINK THAT, YOU KNOW, WE HAVE PUT BOTH I, I WOULD SAY LANDMARK AND PLANNING COMMISSION YOU KNOW, ADD A HANDICAP OF MAKING HARDER DECISIONS BECAUSE OUR COMPREHENSIVE PLAN IS SO ANTIQUATED AND NOT UPDATED. AND I KNOW THAT, YOU KNOW, MOST PEOPLE REALIZE THAT THAT'S WHAT WE'RE ON THE ROAD TO. YOU KNOW, TO WE'RE GOING TO FIX THAT. WE'VE GOT. WE'VE GOT ALL THAT IN PLANS IN PLACE TO GET IT RENEWED AND REFRESHED. ONE OF THE THINGS THAT YOU KNOW, THAT I WAS CURIOUS ABOUT IS THAT HAS IT BEEN MORE DIFFICULT TO MAKE THOSE DECISIONS BECAUSE THERE'S KIND OF NOT A PLAYBOOK IN PLACE THAT IS UPDATED? THAT'S A LOADED QUESTION. I MEAN, I'M GOING. WE CAN ONLY GO. I JUST DID SCREW IT UP, BUT WE CAN ONLY GO BY THE RULES THAT ARE ESTABLISHED CURRENTLY. YOU KNOW, WHETHER WE LIKE SOMETHING OR NOT, IT DOESN'T MATTER. YOU KNOW, WHEN WE LISTEN TO THE PUBLIC AND THEY COME SAY, THIS IS TERRIBLE, YOU SHOULDN'T DO IT. IT'S ALLOWED. WE HAVE NO CHOICE, YOU KNOW. SO YES, THEY DO NEED TO BE UPDATED SO THAT WE HAVE A CLEAR VISION OF WHAT YOU WANT SO THAT WE CAN SUPPORT YOU IN THAT DIRECTION. AND I THINK THAT'S CAUSED A LOT OF, YOU KNOW, LIKE WITH THE ONE INCIDENT YOU WERE SAYING THAT Y'ALL DENIED. AND IT WAS APPROVED HERE AT THE COUNCIL LEVEL. YOU KNOW, I DO THINK IT'S IMPORTANT THAT WE GET ON THE SAME PAGE AND, YOU KNOW, AS I'VE COMMUNICATED BEFORE, AT SOME POINT IN TIME, WE CAN GET ON SCHEDULE TO, TO HAVE A MEETING WITH COUNCIL AND, YOU KNOW, BUT I THINK IT'S IT'S ULTIMATELY DEPENDENT ON THAT COMPREHENSIVE PLAN BEING UPDATED BECAUSE I THINK THAT ANSWERS A WHOLE LOT OF QUESTIONS OF WHAT WE WOULD ACTUALLY DISCUSS. SO BUT IN THE MEANTIME, I DO THINK IT IS CRITICALLY IMPORTANT THAT WHAT I JUST SAID, THAT MISS MORGAN TO SAY I'M SORRY. I'M SORRY. I KNOW I THINK IT IS IMPORTANT THAT WE MEET A FEW TIMES A YEAR, AND SO THAT WE'RE ALL HITTING THE SAME DIRECTION AND NOT SPINNING OUR WHEELS, GOING IN DIFFERENT DIRECTIONS. THAT'S NOT VALUE ADDED WORK FOR EITHER OF US. YEAH. DAVID, YOU HAD A QUESTION. YEAH. SORT OF BUILDING ON THAT BEFORE WE MEET. I WOULD ASK THAT IF YOU'RE REAPPOINTED AND THIS IS KIND OF GOING TO THE PURPOSE OF THE PLANNING COMMISSION AS A POLICY RECOMMENDING BODY. YOU HAVE THE ABILITY AND SHOULD BE EMPOWERED TO TAKE A LOOK AT CHANGES, POTENTIAL CHANGES TO THE LAWS, EVEN IN THE INTERIM, PARTICULARLY IN THE ARM, BECAUSE WE'RE NOT GOING TO HAVE A COMPREHENSIVE PLAN FOR ANOTHER YEAR AND A HALF. AND SO I WOULD JUST I WOULD JUST WANT TO SAY ON THE RECORD THAT IF YOU'RE REELECTED, REAPPOINTED, THAT YOU FEEL EMPOWERED BY COUNCIL TO COME UP AND TAKE A HARD LOOK AT [01:50:02] SOME OF THESE CUTS AND THE UNDERSTANDING OF WHY THEY'RE COMING UP THE WAY THAT THEY ARE, AND MAYBE MAKE SOME RECOMMENDATIONS FOR POTENTIAL CHANGES TO THE ELDERS. THANK YOU. YEP. VERY GOOD. ANY OTHER QUESTIONS? COUNCIL, I'D LIKE TO MAKE A COMMENT ABOUT SOME OF THE THINGS THAT WERE SAID. FIRST OF ALL, THANK YOU FOR YOUR AGAIN FOR YOUR SERVICE, MARY JANE. I THINK IT'S VERY IMPORTANT THAT THE PLANNING COMMISSION UNDERSTANDS THE CONCEPTS AND THE PHILOSOPHY THAT THE CITY COUNCIL HAS ABOUT THOSE ITEMS AND SO FORTH THAT THE PLANNING COMMISSION REVIEWS. SO I WOULD SAY THIS, THOUGH, FOR THE GENTLEMAN THAT FELT CONCERNED ABOUT, WELL, WE WENT TO WE MADE THIS DECISION AND COUNCIL DIDN'T SUPPORT THAT. I THINK THAT'S HEALTHY. I THINK IT'S HEALTHY THAT WE HAVE A PLANNING COMMISSION THAT DOESN'T NECESSARILY FOLLOW LOCKSTEP OF WHAT COUNCIL WANTS TO DO. AND I SAY THAT BECAUSE WE LEARN A LOT FROM THE PLANNING COMMISSION. YOU WERE IN THE TRENCHES THERE IN THE PLANNING COMMISSION. YOU HAVE A LOT MORE DATA AND INFORMATION AND PUBLIC INPUT THAT FLOWS TO YOU, AND YOU'RE CONCENTRATED AND FOCUSED ON THOSE ISSUES. HERE AT COUNCIL, WE'VE GOT SO MANY VERY IMPORTANT ISSUES GOING ON AT ONE TIME THAT SOMETIMES THAT'S NOT OUR PRIMARY FOCUS. FOCUS. AND I ALWAYS LOOK TO THE PLANNING COMMISSION'S OPINION ON WHY THEY FELT A CERTAIN WAY AND HOW THEY VOTE. SO I THINK IT'S IMPORTANT THAT WE UNDERSTAND WHERE EACH ENTITY STANDS AND YOU UNDERSTAND WHERE COUNCIL DOES, BUT DON'T FEEL LIKE THAT. YOU HAVE TO FOLLOW A LOCKSTEP NECESSARILY, IN MY OPINION. I THINK COUNCIL IS I THINK PLANNING COMMISSION IS AN ENTITY AND A JUDICIAL BODY UNTO THEMSELVES. AND I THINK YOUR OPINION, WHATEVER THAT MAY BE, HOLDS WATER HERE WITH COUNCIL. THANK YOU. YOU'RE WELCOME. WE TRY HARD. WE REALLY DO TRY HARD. EVERYONE ON THE PLANNING COMMISSION DOES THEIR RESEARCH. THEY WORK REALLY HARD. SO IT'S A GOOD GROUP OF FOLKS. SO THANK YOU VERY VERY MUCH. APPRECIATE IT. THANK YOU. HAVE A GREAT DAY. ALL RIGHT. WE HAVE NEXT THING. YOU WANT TO ASK THE QUESTION? I KNOW LAST NAME MILENKO OR INTERVIEWS. I'LL TAKE AN HOUR OF THAT. WHENEVER I SAY SOMETHING. THERE. NICK LANKFORD WITHDREW HIS NAME DUE TO A WORK CONFLICT. SO THIS IS MR. HOLDER. OUT OF YOUR COAT OR. COME RIGHT IN, SIR. HOW ARE YOU? GOOD, GOOD. NICE TO SEE YOU. AND THANK YOU FOR YOUR PATIENCE TODAY. IT'S A NICE WAITING ROOM OUT THERE. GIVE YOU A COUPLE OF MINUTES, MR. HOLDER, TO GIVE AN INTRODUCTION, IF YOU WOULD, PLEASE. AND THEN WE'LL OPEN IT UP TO QUESTIONS. INTRODUCTION OF ME TO YOU ALL. YES, SIR. OKAY. DOUBLE CHECKING. MY NAME IS FLOYD WILLIAM HOLDER, THE FOURTH. I HAVE A BACHELOR OF SCIENCE IN URBAN REGIONAL PLANNING FROM TEXAS STATE UNIVERSITY, A MASTER OF PUBLIC ADMINISTRATION FROM TEXAS STATE UNIVERSITY, A MASTER OF ARTS IN POLITICAL SCIENCE FROM TEXAS TECH, AND A MASTER OF SCIENCE IN GEOGRAPHY FROM TEXAS TECH UNIVERSITY AS WELL. I'VE LIVED IN GALVESTON FOR NOW, A LITTLE OVER A YEAR, ONE YEAR, 15 DAYS, LAST I CHECKED. AND I'VE SERVED ON A PRIOR HISTORICAL COMMISSION FOR THE CITY OF KINGSVILLE AND THE ZONING BOARD OF ADJUSTMENTS FOR THE CITY OF SAN MARCOS. AND I'M THE GOVERNMENT INSTRUCTOR OVER AT GALVESTON COLLEGE. YOU'RE AN INDIVIDUAL OF MY OWN HEART BEING SO TECHNICAL ABOUT THINGS, COULD YOU KNOW HOW MANY HOURS AND MINUTES? WHAT'S MORE, IT'S FUN THAT WAY. IT'S LIKE GOING TO A BASEBALL GAME. IT'S A SCORECARD. IT'S LIKE DOING MATH. OH, YOU'RE SPEAKING OF THE CHOIR. INTERESTING. LET'S OPEN UP THE QUESTIONS. COUNCIL QUESTIONS HERE, MR. HOLDER. YES. AS A PLANNING COMMISSIONER, HOW DO YOU BALANCE THE NEEDS OF A DEVELOPER? WHERE COUNCIL HAS BEEN TALKING ABOUT HOW DO WE SPUR MORE APPROPRIATE DEVELOPMENT NEEDS OF THE DEVELOPER? SORRY. ONCE THE DEVELOPER NEEDS OF THE COMMUNITY AND THE REGULATIONS AND RESTRICTIONS THAT THE CITY HAS. I'LL ASK THE QUESTION JUST A SECOND. ON THE PLANNING COMMISSION'S WEBSITE, IT DOESN'T ACTUALLY REALLY STATE WHAT THE [01:55:01] PURPOSE OF THE PLANNING COMMISSION IS. IT JUST SORT OF SAYS WE'RE SUPPOSED TO ENFORCE THE CITY'S PLAN, BUT THE CITY'S DEVELOPMENT PLAN THAT WAS CRAFTED IN, LIKE 2015. IF I'M NOT MISTAKEN. REALISTICALLY, TO ANSWER YOUR QUESTION, THE ONLY THING YOU REALLY HAVE TO DO IS WAS PRETTY MUCH TAKE A LOOK AT EACH PROPOSAL PUT IN BY DEVELOPER AND SEE HOW IT APPLIES TO THE PLAN. THE PLAN IS FOR GETTING MORE UNITS FOR PEOPLE TO STAY. WORRY MORE ABOUT FLOOD CONTROL. JUST KEEP DEVELOPMENT THE SAME. IF IT SUPPORTS THAT YOU PRETTY MUCH WANT TO GO THROUGH AND APPROVE OF IT, AND IF IT DOES SOMETHING REALLY OFF THE WALL, THEN YOU KIND OF WANT TO GO IN AND SAY, WE NEED YOU TO GO BACK AND LOOK AT THIS BECAUSE WE'RE TRYING TO SUPPORT THESE GOALS. WHAT ABOUT SOMETHING THAT'S NOT SO OFF THE WALL, BUT THAT'S A VARIANCE THAT WOULD WOULD BE CONSIDERED A BIT IN THE GRAY AREA WHERE IT FITS THE PLAN, BUT IT MAY NOT FIT OUR LIVES. AND WE WOULD JUST CALL IT A PUTT OR A VARIANCE. AND SO WHEN WHEN THAT HAPPENS HOW DO YOU BALANCE THAT. YOU JUST HAVE TO LOOK AT IT ON A CASE BY CASE BASIS. IT'S IT'S WHAT ARE THEY PHYSICALLY WANTING TO DO. AND GO BACK AND THEN LOOK AT THE LDR AND SEE WHAT IT SAYS AND MAKE A JUDGMENT BASED OFF OF THAT. VERY GOOD. ANY FURTHER KIND OF FOLLOW UP QUESTION ON THAT. THE WE CALL VARIANCES HERE PUDS, YOU KNOW, PLANNED UNIT DEVELOPMENT. AND THERE'S BEEN OCCASIONS WHERE DEVELOPERS HAVE ASKED FOR A VARIANCE OR A PUD IN ORDER TO, YOU KNOW, ENHANCE THEIR OPPORTUNITIES TO MAKE A, MAKE A PROFIT DOING WHAT THEY'RE DONE. BUT OF COURSE, THE OTHER SIDE OF THAT IS WHAT IS THE IMPACT ON THE COMMUNITY AND AND WHAT WHAT ARE WHAT ARE HOW DO WE TAKE THE SUBJECTIVE NESS OUT OF IT AND MAKE BE FAIR AND MAKE GOOD JUDGMENTS ON THIS? SO THE QUESTION IS WHAT IS WHAT IS YOUR. AND THIS HAS COME UP BEFORE IN RELATION TO SOME PLANNING OR DEVELOPMENTS ON PARTS OF THE ISLAND THAT MAY BE ERODING OR FLOODING OR HAVE A FLOOD RISK OR SOMETHING LIKE THAT. AND WE'VE WE'VE GOTTEN POSTS BEFORE ABOUT THAT. SO WHAT IS YOUR WHAT IS YOUR UNDERSTANDING OF THE PUD PROCESS. THAT IS WHEN TO UTILIZE IT. WHAT THE CRITERIA SHOULD BE, AND I WOULD SAY AT THIS TIME I'M NOT FAMILIAR WITH IT. I NEED SOME TRAINING ON WHAT EXACTLY IT IS. MORE SPECIFICALLY. OKAY. OKAY. WELL, BASICALLY IT'S A VARIANCE PROCESS. YES. CAN YOU PLEASE REPEAT YOUR QUESTION? I'M NOT QUITE SURE, I GUESS, HOW TO USE THAT VARIANCE PROCESS TO. I THINK ALEX KIND OF ALLUDED TO IT, TO BALANCE THE NEEDS OF THE DEVELOPER AND THE IMPACT AND PROTECT THE LOCAL PEOPLE WHO LIVE HERE IN THE ISLAND. I THINK REALLY IT JUST MIGHT GO BACK DOWN TO THE ACTUAL PROJECT IN QUESTION. YOU CAN'T REALLY HAVE SOME SET OF PROCESS FOR EVERYTHING. YOU JUST HAVE TO LOOK AT EACH PROPOSAL. WHAT DO THEY WANTING TO DO? HOW ARE THEY WANTING TO DO IT? DO THEY CROSS THEIR T'S DOT THE DOT AT THEIR EYES? JUST TAKE ON A CASE BY CASE BASIS. WHAT ARE THEY ACTUALLY WANTING TO DO? IT'S. I GOT A LETTER FOR THE CITY TALKING ABOUT THE NEW SKYWALK GOING IN FOR THE HIGH SCHOOL. I'M GOING TO GO DROP OFF MY LETTER ONCE I LEAVE HERE SAYING I APPROVE OF IT, BUT I CAN'T THINK OF. I THINK I THINK I WOULD THINK OF ONE SKYBRIDGE IN THE CITY, AND PUTTING ONE IN FOR HIGH SCHOOL SOUNDS KIND OF CRAZY. I THINK I'D RATHER THEM SHUT DOWN AVENUE O BETWEEN THE BUILDINGS, TURN TO THE BIG PEDESTRIAN AREA. I'D MUCH RATHER THAN TO DO THAT. BUT THE SKYWALK IS SAFE. INCREASES SAFETY. IT INCREASES CONNECTIVITY TO BUILDINGS. GETS GOOD AC FOR EVERYONE. YEAH. OKAY. OKAY. SO WHAT MADE YOU CHOOSE GALVESTON? I GOT A JOB HERE AT GALVESTON COLLEGE. MY WIFE AND I MOVED HERE IN LATE JULY OR EARLY AUGUST OF LAST YEAR. TO GET OUT OF SNYDER. THEY MOVED TO THE BEACH. REMINDS HER OF WHERE SHE'S FROM. SO. OKAY, DAVID, YOU KNOW, WE'RE LOOKING OVER YOUR YOUR CV. IT'S VERY APPARENT THAT YOU HAVE A HEART FOR SERVICE, FOR COMMUNITY FUN. YEAH. OKAY. WE'LL GO WITH THAT. AT TIMES, I CAN'T BE. THIS IS MOMENTS. AND I THINK ONE OF THE THINGS THAT I WANTED TO COMMENT ON AND I THINK IS A INTERESTING BLEND IS YOU COMMENTED ON YOUR YOUR LETTER TO US THAT YOUR FAVORITE YOUTUBE CHANNEL IS CITY PLANNER PLAYS. YEAH. YEAH. SO I LOVE THAT CHANNEL. SO TELL ME A LITTLE BIT ABOUT HOW THAT SORT OF WHAT'S IT WHAT IS THE ENTERTAINING PIECE ABOUT THAT AND HOW THAT SORT OF PLAYS INTO YOUR INTEREST IN SERVING? IT'S HIS FAVORITE CHANNEL TOO. IF YOU COULDN'T. SORRY. I CAN ALREADY SHOUT. THE GUY THAT PLAYS IT PHIL HE'S A HE'S A FORMER CITY PLANNER OUT OF [02:00:03] MADISON, WISCONSIN. AND THE WAY HE OPERATES THE CHANNEL IS THAT HE'S BASICALLY DRAWING HIS EXPERIENCE FROM URBAN CITY PLANNING, AND THEN HE'S ACTUALLY INFORMING YOU IN A WAY THAT YOU CAN ACTUALLY LEARN LIKE, OH, PEOPLE LIKE THE WALK. BUT IF YOU'RE GOING TO PUT IN BIG WALKING AREAS, DON'T FORGET TO PUT IN THE. THINGS. YOU SIT ON BENCHES OR BENCHES SO THAT THE PEOPLE THAT TYPICALLY WALK ON AND HAVE A PLACE TO SIT, WHICH IS GOING TO BE SENIOR AND MORE EXPERIENCED CITIZENS. YEAH, IT'S JUST NICE, A NICE WAY TO LOOK WHERE I'M GOING. IT'S IT'S IT'S LIKE SORRY. NO, I FOUND IT FASCINATING THAT THAT WAS ONE OF YOUR INTERESTS AS WELL. SO. YEAH, IT'S MY I LOVE TO ANNOY MY WIFE BY MEMORIZING THE MAP FROM EVERYWHERE WE GO. YEAH. HOW DO YOU KNOW THAT? I CAN LOOK UP AT THE SKY AND LOOK AT A PLANE AND KNOW WHAT TYPE OF AIRCRAFT IT IS? AND FOR THE FIRST, YOU KNOW, THE ONLY THING MORE BORING THAN THE CITY PLANNER CHANNEL WOULD BE A DENTAL CHANNEL. WELL, THAT'S CRAIG'S FAVORITE. WHOA WHOA WHOA WHOA. THERE'S A CHANNEL CALLED THE HOOF GP OUT OF SCOTLAND, AND THAT GUY MAKES HOOF TRIMMING ON COWS. PRETTY IMPRESSIVE. WELL, THERE'S THE IDAHO HORSE SHOEING SCHOOL. THEY TRAIN ALL THEIR HORSES THERE. THEY TRADE ALL OF THEIR HORSESHOES TO LITERALLY MAKE THEIR OWN HORSESHOES, AS OPPOSED TO GOING THROUGH AND BUYING IT. WELL, THAT'S THAT'S GOOD TO KNOW. YOU'RE WELCOME. BUT THANK YOU, MR. OWNER. YES, BEAU. SO YOU TEACH CITY GOVERNMENT, RIGHT? I MEAN, NOT CITY GOVERNMENT. YOU TEACH GOVERNMENT. I TEACH YOU LIKE. AND YOU COMBINE THAT WITH A KNACK FOR A HUGE INTEREST IN PLANNING. OBVIOUSLY. OH, YEAH. THIS STARTING TRACK WITH HOW MANY MASTERS YOU HAD? YEAH, THAT'S A PRETTY GOOD JOB. WHAT? WHAT DO YOU SEE? WHAT DO YOU SEE US, LIKE, IN THE PLANNING ARENA? WHAT DO YOU SEE US DOING RIGHT? AND WHERE DO YOU SEE SOME AREAS THAT WE COULD HEAR IN THE CITY? GALVESTON. YEAH. REALLY? PROBABLY THE ONE THING THIS I TALKED TO MY WIFE ABOUT A LOT. SHE'S FROM A PART OF THE WORLD THAT'S VERY, VERY WALKING FRIENDLY AND REALLY TRYING TO CONNECT MORE DOWNTOWN TO THE BEACH, TO THE PORTS. IF I'M BEING PERFECTLY HONEST, I'D LOVE TO TAKE A STEAM ROLLER DOWN THE STRAND AND TURN IT INTO A BIG PEDESTRIAN AREA AND THEN CONNECT THE STRAND ALONG 25TH STREET BY DOING THE SAME WITH THE NORTHBOUND LANES OF 25TH STREET, AND PUT IN A NICE BIG PEDESTRIAN AREA AND JUST CONNECT EVERYTHING. VERY GOOD. YOU KNOW WHAT? WHILE WE DON'T HURT THE CITY COUNCIL WITH THAT, LET'S DO THAT. WE TRIED THAT IN THE 60S ON POST ON THE STREET. DID NOT WORK. REALLY? YEAH. YEAH. BUT THAT WAS ANOTHER TIME POST ON THE STREET. IT RAN THEM OUT. IT WAS A QUESTION FOR YOU. YOU KNOW, FOR SO MANY YEARS, CITIES HAVE HAD MINIMUM PARKING STANDARDS FOR OPENING OF BUSINESS, AND YOU HAD TO HAVE A CERTAIN AMOUNT OF PARKING. I AM NOW SEEING CITIES MOVING IN A DIRECTION. AUSTIN STARTING TO DO THIS. THEY ARE REQUIRING NO PARKING REQUIREMENTS FOR BUSINESSES, OPENING WITH THE INTENT OF FORCING PEOPLE TO HAVE MASS TRANSIT AND OTHER FORMS OF TRANSPORTATION SO THEY'RE NOT DRIVING THEIR OWN CROSSING. AND I UNDERSTAND, BUT I'M SEEING THAT MOVEMENT KIND OF HAPPENING AROUND THE NATION TO A CERTAIN EXTENT, BECAUSE PARKING IS SUCH A PROBLEM. ANY COMMENTS ON THAT? THE BIG THING YOU SEE IN BIG TOWERS IS THE PARKING PADS, LIKE THE FIRST EIGHT FLOORS OF THE BUILDING ARE JUST A PARKING GARAGE, AND THEN YOU GET TO WHERE PEOPLE LIVE. THERE'S A ANOTHER GREAT CITY PLANNER CHANNEL CALLED CITY NERD, RAY DELAHANTY. WE'RE TALKING ABOUT THE SAME STUFF OVER HERE. YOU KNOW WHAT WE'RE TALKING ABOUT. HE'S GOING TO GO THROUGH AND NOT REQUIRE THOSE, BUT I DON'T THINK IN GALVESTON. GALVESTON DOESN'T WORK WITHOUT PARKING, RIGHT? IF WE'RE BEING PERFECTLY HONEST, AS MUCH AS YOU WANT TO MAKE IT MORE, YOU CAN TRY TO MAKE IT MORE WALKABLE. BUT IF YOU REALLY WANT TO DO ONE THING, PROBABLY TAKE THE AREA NEXT TO THE ACADEMY AND PUT IT A BIG PARKING LOT THERE FOR THE BEACH, AND THEN GET RID OF ACTUAL BEACH FRONT PARKING TO EXPAND THE PEDESTRIAN AREA. OKAY. ANY FURTHER QUESTIONS FROM MISTER HOLDER? MAKE SURE TO INTRODUCE YOURSELF TO TIMOTHY JONES. TIM, RAISE YOUR HAND. YEAH. ME. TIM. THAT'S. THAT'S ANOTHER NERD THAT'S SITTING OUT THERE PLANNING, SON. THAT'S ALL CORRECT. [02:05:01] YES, SIR. THANK YOU FOR YOUR TIME. THANK YOU. WE'RE GOING TO PASS YOUR RESUME ON DOWN. I LEARNED A LOT. I DID NOT KNOW THEY HAD THOSE CHANNELS. BEACH FRONT PARKING GARAGE. HE WOULD HAVE. HE WOULD BE A FUN CLASS TO TAKE. REALLY? YEAH. YES, IT HAS BEEN. JIMMY YARBOROUGH WANTED TO DO THAT A LONG TIME AGO. HEY, WE HAVE A PLAN OUT THERE. WE DID A SOMEWHAT OF A MASTER PLAN STUDY TO DO THAT. WHEN I WAS ON COUNCIL IN 54, 14, 15, 16 TAKING THAT PARKING OFF OF THE SEAWALL AND MOVING. IT'S STILL A GOOD IDEA. IT'S A VERY GOOD IDEA. VERY GOOD IDEA, MR. WALPOLE. HOW ARE YOU, SIR? IT'S NICE TO SEE YOU ALL AGAIN. AND THANK YOU FOR YOUR PATIENCE TODAY. APPRECIATE IT. GLAD TO BE HERE. WE'LL GIVE YOU A COUPLE OF MINUTES FOR AN INTRODUCTION, SIR, AND THEN WE'LL OPEN UP TO QUESTIONS. OKAY. TWO THINGS I'D LIKE TO SAY. FIRST, THOUGH, I REALLY APPRECIATE YOU, MAYOR, COMING IN AND SAYING WHAT YOU SAID IN REGARD TO THAT, IT'S NOT NECESSARILY ABOUT EXPERIENCE. IT'S REALLY MORE ABOUT THE REPRESENTATION THAT WOULD REPRESENT THE BOARD, THE CITY ADMINISTRATION, MORE SO THAN REALLY ABOUT THE EXPERIENCE. I THINK THAT'S A GREAT THING. SO HOW WHO WOULD REPRESENT THE BEST? AND THEN NUMBER TWO, THE THE THE THE QUALITY OF WHAT IS BEING PRESENTED AND HOW IT'S END UP BEING PRESENTED. SO I'M EXCITED TO BE HERE. LOOKING FORWARD TO IT. AND I DID IT. PUT ON MY PAPERWORK. I DIDN'T FILL OUT A LOT REGARDING RESUME HISTORY CAPABILITIES, BECAUSE IT WAS JUST A LOT OF INFORMATION THAT PROBABLY NOBODY WOULD READ ANYWAY. I CAN TELL YOU IN PROBABLY ABOUT TWO MINUTES OF WHAT THE BACKGROUND AND STUFF OF MYSELF IS. AND SO FROM A, I'M MAINLY FROM A BACKGROUND OF CONSTRUCTION. SO IT GOES BACK TO, I'M GOING TO SAY, FROM WORKING IN PALM SPRINGS, CALIFORNIA, TO BISCAYNE BAY, MIAMI TO CHICAGO, ON THE LAKE TO THE TIP OF TEXAS AND MCALLEN, BROWNSVILLE AND EVERYWHERE ELSE IN BETWEEN TWO, TWO OTHER CONTINENTS. I WORKED IN AFRICA, IN JOHANNESBURG, AND I WORKED IN ACTUALLY WITHIN A SITE OF THE US EMBASSY THAT'S THERE IN NAIROBI IN KENYA AND WORKED IN SOUTH AMERICA, SOUTH PACIFIC TWO YEARS ACTUALLY SIX YEARS, TWO YEARS IN MEXICO, SIX YEARS IN PERU, BUILDING HOMES IN NAIROBI. IT WAS COMMERCIAL AND JOHANNESBURG, IT WAS COMMERCIAL AND BUT IT'S BEEN I'VE BEEN I'VE BEEN IN THE CONSTRUCTION BUSINESS, COMMERCIAL AND RESIDENTIAL FOR 45 YEARS, BUT ALSO IN HOUSTON, IN THE HEIGHTS. WE BOUGHT HOMES, ACQUIRED PROPERTIES, MOVED OLDER HOMES OVER ONTO PROPERTIES, REFURBISHED THEM, RESOLD THEM, AND THEN DEVELOPED ENTIRE BLOCKS INTO NEWER HOMES. STILL VICTORIAN, BUT MORE, YOU KNOW, NEW AMENITIES, THINGS OF THAT NATURE. AND SO I WAS EXPOSED TO AND GOT A LOT OF EXPOSURE DEALING WITH THE CITY GUIDELINES, PERMITS, LICENSES, BACK ALLEYWAY ACCESSES TO THOROUGHFARES, INFRASTRUCTURE, STORM SEWER, SANITARY SEWER, REPAIR OF THE STREETS, THOSE KIND OF THINGS. SO BUT NOW I'M IN THE ARCHITECTURAL WOODWORK MANUFACTURING BUSINESS THAT MY OFFICE, MY SHOP IS UP MY INTERCONTINENTAL AIRPORT. AND I'VE BEEN DOING THAT NOW FOR THE LAST 20, 20 YEARS. 25 YEARS. AND THAT'S WHERE I'M AT TODAY. SO. VERY GOOD. OKAY. THANK YOU FOR YOUR APPLICATION. COUNCIL. LET'S OPEN IT UP FOR QUESTIONS, MR. WALPOLE. BOB, IT'S JUST A REAL SIMPLE ONE. WHAT DO YOU WHAT DO YOU THINK YOU COULD BRING TO THE WORK OF THE PLANNING COMMISSION BASED ON YOUR BACKGROUND? I THINK THAT PROBABLY FROM, YOU KNOW, I HAD THE REALLY THE BENEFIT OF SPENDING A LOT OF TIME WITH SOME ENGINEERS, EVEN FROM ALL OVER THE WORLD. SO THEY WERE THERE FROM LONDON, FROM AUSTRALIA, GERMANY. THERE'S JUST A LOT OF DIFFERENT PERSPECTIVE, YOU KNOW, IN COMING TO THE ISLAND. I THINK THERE'S A LOT OF THINGS THAT COULD BE LOOKED AT. I LOOK AT THINGS DIFFERENTLY SIMPLY BECAUSE THERE'S JUST THE EXPOSURE AND THE EXPERIENCE. CHALLENGES ARE ALL THE SAME. NEITHER ARE THE SOLUTIONS. SO WHEN YOU HAVE MORE OF A WAR CHEST TO PULL FROM. IT KIND OF HELPS WHERE YOU'RE ABLE TO OFFER UP A LITTLE BIT MORE IN CHOICES. BUT, YOU KNOW, THERE'S A LOT OF THINGS THAT ARE GOING ON WITH THE ISLAND, AND I'M SURE MY LIST OF PRIORITIES WOULD BE DIFFERENT THAN EVERYONE ELSE IN THE ROOM, [02:10:02] BUT NEVERTHELESS, THEY'RE ALL IMPORTANT. SO I JUST BELIEVE THAT HAVING THAT WORK OF EXPERIENCE TO PULL FROM WOULD BE ADVANTAGEOUS, AND I'M HERE TO GIVE IT THE BEST SHOT. ALEX. SO AND COUNCIL HAS REALLY BEEN DISCUSSING HOW WE PROMOTE GROWTH AND DEVELOPMENT RESPONSIBLY. IN TERMS OF BALANCING NEEDS OF A DEVELOPER, THE SORRY, THE WANTS OF THE DEVELOPER, NEEDS OF THE COMMUNITY AND REGULATIONS THAT SOMETIMES DON'T FIT THE BOX. HOW DO YOU BALANCE THAT WHEN SOMEBODY IS ASKING FOR A VARIANCE OR A POD OR SOMETHING SIMILAR? WE'RE TALKING ABOUT RESIDENTIAL AND COMMERCIAL PLANNING. SO YOU'LL PROBABLY BE SEEING BOTH ARE WILL YOU BRINGING UP SOMETHING THAT I'VE HAD TO DEAL WITH? IN FACT, I'M DEALING WITH IT RIGHT NOW ON SOMETHING ELSE, BUT I'M ON THE FENCE BETWEEN BOTH. I LOOK AT THE NEEDS OF THE HOMEOWNER, WHICH I ARE 1 IN 1 SENSE, AND THEN THE OTHER IS ALSO, AS FAR AS THE GROWTH IS CONCERNED, IT MATTERS ABOUT WHAT THE IMPACT IS GOING TO BE ON THAT PARTICULAR AREA WHERE IT'S GOING TO TAKE PLACE. SO, I MEAN, FOR INSTANCE, WHAT'S TAKING PLACE OR IT'S BEEN PROPOSED OUT ON THE EAST END, WHICH I DON'T THINK THERE'S ANYBODY HERE NOT AWARE. I HAVE MY, YOU KNOW, RESTRICTIONS OR RESERVATIONS REGARDING WHAT IT'S GOING TO DO TO THE HOMEOWNERS SITUATION, WHICH AGAIN, IT WOULD BE A DIRECT IMPACT. BUT I ALSO UNDERSTAND THE BUSINESS SIDE OF IT, THAT IT'S VERY IMPORTANT BECAUSE IT'S A LOT OF INFRASTRUCTURE THAT BRINGS RESOURCES, YOU KNOW, TO THE ISLAND, TO THE TO THE CITY. AND I THINK THERE'S A BALANCE WITH ALL OF IT. IN ANY ARBITRATION, YOU'RE NOT GOING TO GET EVERYTHING YOU WANT, BUT THERE HAS TO BE ENOUGH TO WALK AWAY WITH THAT ALLOWS BOTH PEOPLE TO FEEL GOOD ABOUT WHAT THEY JUST DISCUSSED. SO I, I JUST THINK IT'S SOMETHING DEPENDING ON WHAT IT IS, THERE'S NOT A A DEFINITE THERE NEEDS TO BE AN ANALYSIS BASED ON WHAT'S ACTUALLY BEING PRESENTED. THERE'S A, THERE'S A, I GUESS, A BARRIER TO CHANGE WHEN CHANGE HAPPENS SOMETIMES INCLUDING MYSELF. NO ONE LIKES TO SEE CHANGE OR IT HAPPENS SLOWLY AND THERE'S A LOT OF INPUT. WE'RE GOING INTO OUR NEW COMPREHENSIVE PLAN. SOME OF THE THINGS IN OUR 2015 ELDERS MIGHT BE OUTDATED. HAVE YOU BEEN IN A SITUATION I DIDN'T KNOW INTERNATIONALLY? TO WHERE? WHERE YOU COULD BE IN THE MIDDLE OF A COMPREHENSIVE PLAN. WHERE YOU COULD BE IN THE MIDDLE OF, YOU KNOW, CHANGING THINGS TO A BETTER, MORE COHESIVE SYSTEM FROM SOMETHING THAT IS TEN YEARS OLD. HAVE YOU HAD ANY EXPERIENCE IN DOING THAT? YOU MEAN FROM AN INFRASTRUCTURE STANDPOINT IN THE DEVELOPER WORLD AND THE BUILDER WORLD, OR IN A DECISION MAKING ROLE DEALING WITH IN THE MIDDLE OF A CHANGE, DEALING IN THE MIDDLE OF A PLAN CHANGE OR HOW WE'RE GOING TO LOOK AT ALL THE REGULATIONS HOLISTICALLY. HAVE YOU BEEN IN THE MIDDLE OF THAT EVER? NOT NECESSARILY FROM WHAT YOU'RE TALKING ABOUT SPECIFICALLY AS FAR AS AN LDR, BUT IN REGARD TO ANY ANY TYPE OF BUILDING OR DEVELOPMENT, THERE'S CHANGES ON A CONSTANT BASIS. AND IT'S SOMETHING THAT YOU JUST HAVE TO WORK WITH AND ROLL WITH. IT'S THE NATURE OF THE INDUSTRY AND IT'S NOT NECESSARILY A NEGATIVE. IT'S JUST SOMETHING THAT IT YOU KNOW, IT PURGES SOMETIMES AND THE NEED IS THERE. SO WHEN EVEN IN THE HEIGHTS AREA, WHICH IS ALL VERY OLD, THERE'S A LOT OF SURPRISES THAT COME OUT WHEN YOU START PUTTING DIGGING IN THE GROUND. AND SO THERE ARE THINGS THAT YOU HAVE TO UPDATE AND UPGRADE. YOU SAY, WELL, WE DIDN'T PLAN FOR THAT. WELL, NOBODY DID NECESSARILY. BUT YOU CAN, YOU KNOW, IF YOU PLAN THAT THERE'S A POSSIBILITY AND THEN YOU HAVE TO WORK FOR A SOLUTION. SO DEPENDING ON WHAT THE CIRCUMSTANCE IS, IT WOULD HAVE TO BE ALMOST DEFINED THAT IT BE UNIQUE. BUT I MEAN THERE'S ALWAYS A WAY. IT JUST DEPENDS ON, YOU KNOW, WHO'S WHO'S CONTRIBUTING AND WHO NEEDS TO EITHER APPROVE OR, YOU KNOW, TO BE FLEXIBLE, TO BE ABLE TO GET A RESULT BECAUSE YOU'VE GOT TO MOVE FORWARD. YOU CAN'T JUST SIT THERE STALEMATE. YOU'VE GOT TO BE ABLE TO BE PRODUCTIVE. THERE'S ALWAYS A WAYS TO GET THERE. JUST YOU SIT DOWN AND JUST DISCUSS AND ARBITRATE AND GET ENOUGH RESOURCES IN THE ROOM TO GET THERE? SURE. VERY GOOD. ANY FURTHER QUESTIONS? COUNCIL. MR. WALPOLE? THANK YOU SIR. THANK YOU. APPRECIATE YOUR TIME. JUST STAY HERE AND I'LL TELL YOU ONE OTHER THING. I TALKED TO A LOT OF PEOPLE THAT WENT IN THE ROOM. AND THERE IS YOUR, YOU KNOW, CANDIDATES. THEY'RE ALL GOOD PEOPLE. YOU'RE NOT GOING TO LOSE. [02:15:01] NO MATTER WHICH WAY YOU GO. I'LL TELL YOU, THERE ARE REALLY GOOD PEOPLE, AND I'M GLAD TO HAVE THEM AS NEIGHBORS. THANK YOU. THANKS. THANK YOU. APPRECIATE YOUR TIME. APPRECIATE YOU. COUNSEL, IF YOU DON'T MIND. [3.H Galveston Community Police Association Presentation and Discussion ( M Robb/C Brown - 15min )] LET'S MOVE TO ITEM THREE H. PLEASE BE ABLE TO READ THAT, PLEASE. ITEM THREE H. GALVESTON COMMUNITY POLICE ASSOCIATION PRESENTATION AND DISCUSSION. MARIE, WOULD YOU INTRODUCE THE GENTLEMAN, PLEASE? SURE. IT'S MY PLEASURE TO INTRODUCE CAPTAIN PERVEZ. AND THIS IS A PROGRAM THAT WE HAVE PUT TOGETHER. HE HAS PUT TOGETHER EVER SO WELL AND I'LL TURN IT OVER TO HIM SO HE CAN EXPLAIN IT TO YOU. GOOD MORNING, AND THANK YOU FOR THE OPPORTUNITY TO BE HERE. PERVEZ. CAPTAIN WE'VE BEEN OWNERS IN PIRATES BEACH NOW FOR ABOUT 12 YEARS. UNFORTUNATELY, I'M PRESIDENT OF THE PIRATES HOMEOWNERS ASSOCIATION. AND AS EVERYONE KNOWS, IT'S A VERY VOCAL ASSOCIATION WITH A LOT OF GOOD PEOPLE, BUT IT'S A LOT OF FUN. SO I WANT TO PRESENT TO YOU THE GALVESTON COMMUNITY POLICE FOUNDATION. AND THIS IS A 501 C3. JUST A LITTLE BIT OF HISTORY. ABOUT FIVE YEARS AGO, WE HAD THIS THING CALLED COVID, AND WE HAD AN INCREASE IN SHORT TERM RENTALS AND OWNERS THAT WERE BUYING PROPERTIES ALL OVER THE PLACE. AND WE HAD A REAL ISSUE WITH SECURITY ON THE WEST END. AT THE TIME, WE WERE PROBABLY ABOUT 19 OFFICERS SHORT IN GALVESTON. AND SO JERRY MOEN AND MARTY BAKER CAME TO ME AND SAID, WE NEED A YOUNG GUY LIKE YOU TO LEAD THIS UP, BUT WE REALLY NEED A FOUNDATION IN GALVESTON TO HELP CITY COUNCIL SUPPLEMENT BUDGETS AND GET US TO WHERE WE NEED TO BE. AND SO WE WENT TO HOUSTON, WENT TO HOUSTON AND TALKED TO MR. FERTITTA, WHO YOU PROBABLY KNOW WELL, AND HE RUNS A HOUSTON POLICE FOUNDATION, AND THEY AVERAGED ABOUT $1 MILLION A YEAR. AND THEY WERE VERY, VERY GRACIOUS. AND THEY SHARED WITH ME ALL THEIR BEST PRACTICES HOW THEY GOT SET UP. AND HE WARNED ME. HE SAID, PUBLIC SAFETY 501 C3 IS TAKE A LONG TIME WITH THE IRS. AND SO IT WAS A THREE YEAR JOURNEY. WE JUST GOT IT APPROVED. ABOUT A FEW MONTHS AGO. AND WE'RE ABOUT TO KICK IT OFF. REALLY THE OBJECTIVE OF THIS IS TO WORK WITH CITY COUNCIL, WORK WITH GPD, RAISE MONEY TO WORK TO SUPPLEMENT YOUR BUDGET. BUT WE ALSO WANT TO DO THIS FROM A COMMUNITY STANDPOINT. RIGHT. SO IF YOU HAVE POLICE OFFICERS THAT ARE DOING PROGRAMS IN THE CITY, THE BLUE CENTER PROGRAM, THE BACKPACK GIVEAWAY PROGRAM. RIGHT. WE WANT TO BE SUPPORTIVE OF POLICE OFFICERS THAT ARE SHOWING THEIR OWN INITIATIVE. ONE OF THE BIG CHALLENGES WHEN WE'VE INTERVIEWED POLICE OFFICERS ABOUT RECRUITING IN GALVESTON, THAT'S BEEN THE BIGGEST ISSUE, IS HOW EXPENSIVE IT IS TO LIVE HERE. AND A LOT OF THE OFFICERS LIVE IN LEAGUE CITY OR IN SANTA FE, AND IT'S QUITE A COMMUTE BACK AND FORTH. SO ONE OF THE IDEAS WE HAD TALKING TO MARIA IS THERE ARE OVER A THOUSAND HOUSES FOR SALE HERE IN GALVESTON RIGHT NOW. IT'S AN ECONOMIC ISSUE THAT WE'RE GOING TO HAVE TO DEAL WITH. SO WE THOUGHT ABOUT WHY NOT GET WITH SOME OF THE REALTORS AND GIVE SOME OF THE OWNERS AND SAY, WOULD YOU BE WILLING TO ISSUE LONG TERM LEASES TWO YEARS, THREE YEARS, FOUR YEARS AT A REDUCED RATE AND HAVE A FAMILY IN BLUE LIVE IN THAT AREA IN THE CONDO IN THE WEST END, EAST END, ALL OVER THE PLACE. AND OH, BY THE WAY, YOU'LL HAVE AN INSTANT PATROL WHEN THAT OFFICER LEAVES THE THE BUILDING OR COMES BACK TO THE BUILDING. RIGHT. AND SO YOU HAVE SOMEBODY LIVING THERE FULL TIME. SO WE DID THAT AS AN EXPERIMENT WITH OFFICER JERRY SULLIVAN. AND HE NOW HAS A LONG TERM LEASE IN PIRATE'S BEACH. AND IT'S WONDERFUL BECAUSE NOW HE'S INTEGRATED AS PART OF THE COMMUNITY. AND SO WE SAID IT WOULD BE A WIN WIN IF WE COULD START WITH GPD, THEN MOVE IT TO GFP, MOVE IT TO TEACHERS, MOVE IT TO DEPUTIES AND USE THIS HOUSING CRISIS, THIS OVERSUPPLY TO DO SOMETHING GOOD, WHICH THEN WOULD HELP OWNERS, BUT WOULD ALSO HELP THE COMMUNITY OVER HERE. NOW, ORIGINALLY WE HAD STARTED THIS WITH THE SHERIFF'S DEPARTMENT IN MIND. CHIEF BAILEY AND THE SHERIFF WAS WORKING TOGETHER. AND THEN JIMMY CAME IN AND HE WANTS HIS OWN FOUNDATION, WHICH IS PERFECTLY FINE. BUT WE'VE GOT A LITTLE COMPETITION GOING NOW, AND WE'RE FIRST, SO WE'RE GOING TO BE GOING OUT AND MARKETING THIS. BUT THE MOST CRITICAL ITEM WILL BE WORKING WITH CHIEF VALUE, [02:20:04] WORKING WITH CITY COUNCIL, IDENTIFYING WHAT YOUR NEEDS ARE AND THEN SENDING THAT TO US SO THAT WE CAN GO FUNDRAISE. WE'RE NOT FUNDRAISING TO SAY THIS IS WHAT'S NEEDED. WE'RE FUNDRAISING TO TO ASK ALL OF YOU TO SAY, PLEASE TELL US WHAT IS NOT IN THE BUDGET AND HOW CAN WE HELP? VERY GOOD. WHAT DO YOU SEE AS OUR NEXT STEP FROM THIS POINT FORWARD? SO WE JUST GOT THE FIVE ONE C3. WE GOT THE WEBSITE THERE THAT'S CALLED GALVESTON.ORG. I HAD ONE REQUEST FROM FOR A WEBSITE DEVELOPER. I SAID, I WANT YOU TO FOLLOW THE HOUSTON POLICE FOUNDATION, BUT I WANTED BETTER ONE REQUEST. AND SHE SHE'S DONE THAT. JIMMY AND TEAM ARE COPYING THE HOUSTON POLICE FOUNDATION WEBSITE. OURS IS MUCH BETTER. AND THE NEXT PART IS GOING TO BE MAYOR MARKETING IT GETTING CORPORATE SPONSORS, GETTING INDIVIDUAL SPONSORS. MY WIFE AND MYSELF, IN HONOR OF MARTY, WHO PASSED AWAY THIS YEAR, AND JERRY ARE STARTING WITH THE $25,000 DONATION. WE'RE GOING TO GET THAT STARTED. AND WE JUST WANT TO GO OUT TO THE COMMUNITY AND SAY, HELP US, HELP THE MEN AND WOMEN IN BLUE. I THINK IT'S A WONDERFUL THING. AND THANK YOU FOR MOVING FORWARD WITH THAT. BOB, IT SOUNDS LIKE ONE OF YOUR PRIORITIES IS BEING ABLE TO HAVE THESE FIRST RESPONDERS THAT LIVE ON THE ISLAND. YES. WELL, YES AND NO. WE WANT TO RECRUIT MORE OFFICERS TO GALVESTON. IF THAT MEANS MAKING HOUSING MORE ACCESSIBLE TO THEM, THE ANSWER IS YES. HOUSTON. DO THAT. NO THEY DON'T. THEY DON'T HAVE A HOUSING ISSUE. YOU KNOW, IT'S SO SPREAD OUT THAT HOUSTON REALLY DOESN'T HAVE A HOUSING ISSUE. WE HAVE DEFINITELY HAVE AN AFFORDABILITY ISSUE HERE, A HUGE AFFORDABILITY ISSUE. SO YOU MIGHT WANT TO CONSIDER THERE'S A COUPLE OF PEOPLE IN THE ROOM. YOU MIGHT WANT TO MAKE CONTACT WITH PEOPLE HERE FROM THE GALVESTON HOUSING FINANCE CORPORATION. MARK AND CODY, WE'RE GOING TO BE HEARING FROM AND JUST A LITTLE WHILE BEFORE I LEAVE, BECAUSE THAT'S WHAT THEY DO. THAT'S WHAT THAT'D BE GREAT. THAT'D BE GREAT. VERY GOOD. DAVID. SO I SEE SOME OF YOUR FUNDING OBJECTIVES THAT YOU'VE IDENTIFIED, ITEMS THAT I THINK ARE CLEARLY WITHIN THE PURVIEW OF THE CITY AND SOME OF WHICH ARE OUTSIDE OF IT, FOR EXAMPLE, RELOCATION ASSISTANCE. THAT'S NOT ANYTHING THAT THE CITY WOULD BE INVOLVED IN, BUT OBVIOUSLY OTHER ITEMS, SPECIALIZED EQUIPMENT MAYBE RECRUITMENT AND RETENTION. IF YOU'RE LOOKING AT, YOU KNOW, HELPING WITH WHATEVER LABOR COSTS ASSOCIATED WITH THAT IS THE WAY THAT THIS FUNCTIONS, I'M ASSUMING THAT THE 501 C3 WOULD BE LINKED, OBVIOUSLY, TO THE CITY OF CITIES. THE FUNDS ARE RECEIVED BY THE CITY AND THE GENERAL FUND FOR THE PURPOSES FOR DISBURSEMENT BACK TO GPD FOR SPECIFIC ACTION ITEMS. IS THAT RIGHT? BUT IT'S UNDER THE CONTROL OF THE CITY COUNCIL. WE WOULD WANT CITY COUNCIL TO TELL US. OKAY. SO THE WAY WE SEE IT IS OFFICERS WOULD FILL OUT GRANTS. CAPTAIN SIMS IS OUR CONTACT. CAPTAIN SIMS THEN GOES TO CHIEF BAILEY. CHIEF BAILEY THEN COMES TO BRIAN OR YOU AND SAYS, I NEED BALLISTIC EQUIPMENT OR SOMETHING LIKE THAT, RIGHT? YOU APPROVE IT AND THEN WE CAN FIGURE OUT THE FUNDING, HOW TO FUND IT, WHETHER IT'S MOVED FIRST TO YOU OR YOU APPROVE IT, AND THEN WE TRANSFER IT AGAIN. IT'S LOGISTICS. THE KEY FOR US IS I WANT TO RAISE SOMEWHERE IN THE HALF MILLION TO $1 MILLION EVERY YEAR, AND USE THAT POT OF MONEY TO MAKE THINGS HAPPEN. THE LOGISTICS. YOU TELL ME HOW YOU WANT THE LOGISTICS TO WORK, AND WE WILL MAKE IT WORK. THAT'S FINE. I JUST IT'S A GREAT PROGRAM, AND I'M VERY THANKFUL FOR THE TIME AND ENERGY THAT Y'ALL HAVE SPENT TRYING TO GET THAT 5.1 THREES HARD TO ESTABLISH. AND SO YEAH, SO I THINK THAT, YOU KNOW, WE'LL MAKE SURE WHATEVER, WHATEVER PROCESS NEEDS TO BE PUT IN PLACE IN ORDER TO PROVIDE THE PROPER CONTROL OF THOSE FUNDS THROUGH THE PROCESS IN THE CITY. RIGHT. WE'LL WORK THERE. AND I JUST HAVE ONE QUOTE FROM CHIEF BAILEY, AND I THINK THIS WAS IMPORTANT. HE SAID WHILE SOME COMMUNITIES HAVE TRIED TO WEAKEN OR DEFUND THE POLICE, GALVESTON HAS CHOSEN A DIFFERENT PATH THROUGH THE GALVESTON COMMUNITY POLICE FOUNDATION. OUR RESIDENTS STAND SHOULDER TO SHOULDER WITH US, ENSURING WE HAVE THE RESOURCES, SUPPORT, AND STRENGTH TO SUCCEED IN KEEPING OUR ISLAND SAFE. I THINK THAT SUMS IT UP. I THINK WE WOULD ALL AGREE WITH THAT. THANK YOU SO MUCH AND THANK YOU FOR EVERYTHING YOU DO. YES, AND FEEL FREE TO GET WITH CITY STAFF BRIAN IN THEM. THE COUNTY COURT DATE. ABSOLUTELY. THIS THIS WAS FIRST STEP, GETTING YOUR BLESSING AND APPROVAL. THANK YOU SO MUCH. THANK YOU. JERRY. HELLO. WILL DO. ALL RIGHT. LET'S MOVE TO ITEM THREE B PLEASE. [3.B Discussion of the Interlocal Agreement and Hotel Occupancy Tax Contract with the Park Board ( D Buckley - 20 min )] ITEM THREE B DISCUSSION OF THE INTERLOCAL AGREEMENT AND HOTEL OCCUPANCY TAX CONTRACT WITH THE PARK BOARD. MISTER BUCKLEY. GOOD MORNING. GOOD MORNING. I BRING ALL MY STUFF BECAUSE I'M 3BCD HERE. [02:25:08] OKAY. MAYOR. COUNCIL, THANK YOU FOR THIS. ON THE AGENDA. AS WE TOLD YOU MONTHS AGO, WE WERE GOING TO WORK TOWARD A NEW INTERLOCAL AND A HOT CONTRACT FOR AUGUST. WE'RE GOING TO ACHIEVE THAT GOAL. WE'LL BE BRINGING YOU BACK BOTH OF THOSE AGREEMENTS FOR ACTION LATER THIS MONTH. I WANT TO GIVE YOU AN UPDATE OF WHERE WE WERE ON THE AGREEMENTS AND THEN ON THE HOT CONTRACT. HOW DO I DO THIS? JANELLE. DOES IT BUTTON SOMEWHERE? THERE WE GO. SO UP ON THE SCREEN, WHAT WE'RE GOING TO DO IS TALK ABOUT SOME OF THE MAJOR TENANTS OR THE THEMES THAT WE HAD, THAT WE TALKED WITH COUNSEL, AND WE TOOK Y'ALL'S FEEDBACK AND THINGS THAT WANTED TO INCLUDE IN THE NEW INTERLOCAL AND GIVE YOU AN IDEA OF SOME OF THE THINGS WE DID. WE ESTABLISHED MEASURABLE PERFORMANCE MEASURES IN THE NEW INTERLOCAL. WE ALIGNED THE FUNDING WITH THE COST OF SERVICES WE PROVIDE FOR ENHANCED REPORTING TO AND FROM BOTH FROM THE CITY TO THE PARK BOARD AND THE PARK BOARD TO THE CITY. WE'RE GOING TO BRING FORTH A TWO YEAR BASE CONTRACT THAT ALLOWS FOR ANNUAL RENEWALS UP TO SEPTEMBER OF 2030, TO GIVE YOU AN EXAMPLE OF COST OF SERVICES. IN 2019, WHEN THE FIRST INTERLOCAL WAS WAS APPROVED. IT WAS A $200,000 PAYMENT FROM THE CITY TO THE PARK BOARD FOR MAINTENANCE OF CERTAIN PROJECTS ON THE SEAWALL. WELL, THE WHEN WE WENT INTO THIS DISCUSSION, WE SAID, TELL US WHAT IT COSTS. BECAUSE ONE THING IS, WE DON'T WANT THE PARK BOARD TO EAT COSTS THAT THE CITY SHOULD BE PAYING FOR. AND AT THE END OF THE DAY, WE REVIEWED THEM. WE BUILT THE BUDGET, PARK BOARD BUILT IT, WE REVIEWED IT AND THE NUMBERS ABOUT $305,000. SO THAT FUND, THAT MONEY WILL COME FROM THE CITY TO THE PARK BOARD TO MAINTAIN ITEMS ON THE SEAWALL. THE OTHER ITEM IS SEAWALL AMENITIES. AND REMEMBER, THE PARK BOARD TAKES CARE OF CLEANING, PICKING UP TRASH. YOU KNOW, FOLLOWING MARDI GRAS, THEY PICK UP ALL THE BEADS, THEY REMOVE GRAFFITI, THEY TREAT FOR RODENTS, RATS, GRASS, ALL ON THE SEAWALL, AND THOSE COSTS WERE PREVIOUSLY PAID FOR OUT OF THE BEACH USER FEE, AND THEN THE REMAINING BALANCE OF EACH USER FEES WERE TRANSFERRED BACK TO THE CITY. SO WITH THE CHANGE IN THE COLLECTION OF THE SEAWALL PARKING REVENUE, WE WORKED WITH THE PARK BOARD. THEY DEVELOPED A BUDGET, AND THAT COST HAS BEEN DRIVEN DOWN TO ABOUT $697,698, $688,000 FROM OVER $1 MILLION WHERE IT WAS BEFORE. SO WE'VE REALLY PUT A PENCIL TO IT AND AND WORKING VERY CLOSELY WITH THE PARK WHERE THEY'VE THEY'VE BEEN DONE AN EXCELLENT JOB INTO PROVIDING US BUDGETS ON WHAT IT'S GOING TO COST TO DO THESE SERVICES. AND THAT'S SOMETHING THAT COUNCIL WILL CONTINUALLY ASK FOR. AND WE'VE BEEN ASKING FOR OVER THE YEARS. WE FINALLY GOT IT. AND THAT'S WHERE WE ARE IN THIS INTERLOCAL NOW. YEAH. DAN. QUICKLY. THE CROCKETT PARK OUT THERE ON THE SEAWALL. ARE WE NOW MANAGING THAT PARK MAINTENANCE COMPLETELY? WE'VE WE'VE HAD CROCKETT PARK SINCE WE TOOK OVER THE COUNTY PARKS. RIGHT. AND SO LIKE WHEN YOU SAW THE SALES AT THE FRITO-LAY PART REPLACED, FOR EXAMPLE, THAT WAS PART OF OUR PROGRESS. THE CITY HANDLED THAT. WE STILL WILL ON CAPITAL COSTS, BUT THE CLEANING, MAINTENANCE, CIGARETTE BUTTS FOR TAKING CARE OF THE PLANTERS THEY'RE GOING TO DO, IT'S STILL PARK BOARD. YEAH, THEY'RE GOING TO DO THAT. OKAY. AND WE PAY THEM TO DO THAT. VERY GOOD. YEAH. THE INTERLOCAL IS GOING TO DELINEATE SERVICE EXPECTATIONS AND RESPONSIBILITIES. I THINK YOU'LL SEE IN THIS INTERLOCAL, WHICH WE NEVER HAD BEFORE, IS GOING TO TALK ABOUT THE ITEMS THAT THE PARK BOARD IS GOING TO DO FOR THE MONEY THAT WE'RE PROVIDING THEM. HERE'S WHAT THEIR DUTIES AND RESPONSIBILITIES ARE, SO THAT WE CAN GO BACK AND LOOK AT THEM TO SEE IF THE DELIVERABLES WERE ACHIEVED THROUGHOUT THE TERM OF THE AGREEMENT. THE OTHER THE OTHER ITEM THAT TALKS ABOUT IN THE INTERLOCAL AGREEMENT IS CIP. CIP. I THINK, YOU KNOW I THINK WE'VE DISCUSSED IT. THERE'S BEEN A LOT OF DISCUSSION BACK AND FORTH RELATES TO THAT. THEY ARE NOT BRINGING THAT FORWARD AT THIS TIME. THEY'RE GOING TO BRING IT FORWARD HOPEFULLY SOON, BUT NO LATER THAN MARCH OF 26 FOR THEIR FUNDING NEEDS FOR THAT. AND WE ALSO PUT IN THE INTERLOCAL BECAUSE THERE'S THINGS THAT HAPPEN THAT ARE ONGOING NOW, FEMA PROJECTS, AND WE'VE GOT SPECIAL WORK THAT THE PARK BOARD MAY DO FOR US, FOR EXAMPLE. AND SO THE INTERLOCAL ADDRESSES THAT AND DELINEATES FUNDING SOURCES AND, AND HOW WE WOULD GO ABOUT TAKING CARE OF THOSE RESPONSIBILITIES AS WE MOVE FORWARD. SO IT PROVIDES US OPPORTUNITIES FOR US TO ASSIGN ADDITIONAL DUTIES TO THE PARK BOARD ON AN HOURLY RATE. WHEN WE TALK ABOUT WHAT THOSE COSTS WERE GOING TO BE, WE'RE GOING TO WE DON'T WANT THEM TO LOSE MONEY ON ANYTHING WE ASSIGN THEM. SO IT'S GOING TO BE BASED ON THE COST OF SERVICES. AND QUICKLY, ON YOUR FIRST POINT THERE. I KNOW WHEN WE GET TO THE BUDGET, WE'RE GOING TO TALK ABOUT POSSIBLY APPROVING [02:30:02] THAT FOR THE FIRST TWO QUARTERS, THEN COMING BACK. THIS IS TO COINCIDE WITH THAT. IS THAT CORRECT? NO. THE LOCALS ARE IS MORE OF AN OPERATIONAL TYPE DOCUMENT, MAYOR. CORRECT. BUT WE WITH THE BUDGET APPROVAL, IF COUNCIL MOVES THAT WAY FOR THE FIRST TWO QUARTERS, THAT WOULD COINCIDE WITH MARCH. HERE'S MARCH 1ST DATE OR SOMEWHERE AROUND THERE. IT COULD, BUT I THINK DISCUSSIONS WITH THE PARK BOARD AND THEY HOPE TO GET A CIP DOES WELL IN ADVANCE OF MARCH. GOOD TO KNOW. GOOD TO KNOW. YES. DAVID, CAN YOU GO BACK A SLIDE? I DON'T KNOW. NO. SURE. CERTAINLY ON THAT VERY ONE. THE BOTTOM ONE DELINEATES SERVICE EXPECTATIONS, RESPONSIBILITIES AND CITY FACILITIES. DEFINE MINOR MAINTENANCE VERSUS REPAIR AND CAPITAL REPLACEMENT. WHAT SORT OF THE METRIC OR RUBRIC THAT YOU USE TO DO THAT? DETERMINING WHO'S DOING WHAT. I MEAN, IS THERE? EXACTLY. IS THERE A DOLLAR THRESHOLD? IS IT A IS IT A THRESHOLD? WHAT IS IT? IS IT'S SPECIFIC TO ASSETS AND FUNCTIONS. OKAY. SO WHO'S RESPONSIBLE FOR WHAT. OKAY. AND THEN YOU ALL CLEARLY DEFINE THAT. YES. AND IF THAT HASN'T BEEN THERE BEFORE THAT. SO YOU MENTIONED THAT THE COST FOR SEAWALL AMENITIES MAINTENANCE WENT DOWN FROM 1 MILLION TO $697,000. WHAT WHAT REALLY CHANGED TO MAKE THAT HAPPEN? I THINK SOME OF YOU KNOW, WE CAN ASK THE BOARD HOW THEY WHITTLED IT DOWN TO THAT NUMBER, BUT IT'S ACTUALLY COME DOWN. AND OVER THE LAST REVISIONS COMES OUT. IT'S REALIGNMENT OF STAFF. IT'S REALIGNING THOSE RESPONSIBILITIES. YOU KNOW, I GUESS DURING EVENTS, DO YOU KNOW, ARE YOU HERE? I MEAN, WHAT TRULY CHANGED IN THAT IF YOU COULD IDENTIFY YOURSELF WITH THE CAMERAS. PLEASE, SIR. GOOD MORNING. STILL. MORNING. VINCE LA FORCE, EXECUTIVE DIRECTOR OF COASTAL OPERATIONS FOR THE PARK BOARD. I GUESS, AS MR. BUCKLEY MENTIONED, WE WERE ABLE TO GET THAT DOWN. PART OF THAT WAS THE RESTRUCTURING OF THE PARKS THAT WE HAD WITH THE DELAWARE AND SEA WOLF AND THE COLLECTION OF HOT OR I'M NOT SORRY, COLLECTION OF BEACH USER FEE ON THE SEAWALL COMING BACK TO THE CITY, WE WERE ABLE TO REALIGN SOME OF THE STAFFING AND THEN ALSO WITH THE EXPECTATIONS OF MINOR MAINTENANCE, MAJOR MAINTENANCE. OUR FUNDS BEFORE HAD A CERTAIN LEVEL AND THEREFORE THE UNANTICIPATED ITEMS THAT COULD HAVE HAPPENED, WHETHER IT WAS RELATED TO MAYBE SOME ACCIDENTS, YOU KNOW, SOMEBODY HITTING A FLOWER POT OR IF WE NEEDED TO DO MAJOR REPAIRS. SO AGAIN, BY HAVING THE MAJOR VERSUS THE MINOR, WE'RE ABLE TO TAKE SOME OF THE OPERATIONAL COSTS DOWN. AND THEN OBVIOUSLY THE RESTRUCTURING OF OF THE DEPARTMENT THAT WAS THAT WAS ONE OF MY OBSERVATIONS, WAS THAT Y'ALL PRETTY MUCH CLARIFIED IN HERE THE ROLES AND RESPONSIBILITIES AND DIFFERENCES BETWEEN MAJOR AND MINOR MAINTENANCE. YOU KNOW, CITY DOING STUFF LIKE PLUMBING OR ELECTRICAL OR CONSTRUCTION. AND THEN THE PART THAT WE'RE DOING, THE REST OF IT, I THOUGHT THAT MAY BE ONE OF THE SOURCES FOR THAT REDUCE. IT'S A IT'S A LARGE PORTION, I WOULD SAY WHEN WE LOOK AT THE OPERATIONAL PIECE FOR SURE, BECAUSE WE NO LONGER HAD TO HAVE THOSE. WHAT IF DOLLARS BUILT INTO THE BUDGET. AND SO WE WERE ABLE TO BY HAVING CLEAR DELINEATION EXPECTATIONS, WE CAN LOOK AT WHAT IS IT ACTUALLY GOING TO TAKE TO SERVE THESE, THESE ITEMS. AND THAT'S WHY EVEN IN THE INTERLOCAL THAT WE HAVE THERE TODAY, IF THERE IS SOMETHING THAT GOES INTO THE MAJOR CATEGORY BETWEEN THE CITY AND THE PARK, OR THE CITY COULD DIRECT US TO TAKE CARE OF THAT AS WELL. WE HAVE A FUND. WE HAVE A TWO PART QUESTION. FIRST ONE IS WHAT'S YOUR ANTICIPATED TIMELINE FOR FOR EXECUTION OF THE AGREEMENT? WE HOPE TO BRING IT TO YOU THIS MONTH. YEAH. JUNE 28TH. NO. OKAY, SO YOU'RE ALMOST TO A FINAL POINT. WE'RE THERE. OKAY. THIS IS MY FOLLOW UP QUESTION WAS, IS THERE ANYTHING STILL UNDER CONSIDERATION THAT WOULD HAVE FINANCIAL IMPACT TO THE BUDGET AS PRESENTED? NO, NOT IN THE INTERLOCAL. OKAY. THANK YOU. ALL RIGHT. GOOD. OKAY. I'M BACK HERE. JUST FOR SOME OF THE ITEMS WE CLARIFIED IN THEIR LOCAL THAT HAVE BEEN ISSUES IN THE PAST. THE CONCESSIONS THAT THE PARK BOARD LEASES OR PROVIDES LICENSES FOR ON THE BEACH IS ONLY PUBLIC LANDS. THAT'S PUT IN THERE FOR CLARITY. EASTERN LAGOON. IT'S STILL IN THERE, AND IT REMAINS UNCHANGED UNDER THE AGREEMENT THAT THE CITY IS PROVIDING THE $50,000 FOR THE EIGHT YEARS. SO THERE'S A COUPLE MORE YEARS OF FUNDING FOR THAT. CITY MAINTENANCE ON CURRENT ROADS. YOU KNOW, WE'RE GOING TO CONTINUE TO MAINTAIN THE IMPROVED SURFACES ON THOSE ROADS. PARK BOARDS ARE RESPONSIBLE FOR CLEARING SAND AND DOING THINGS LIKE THAT ON THE CURB, BUT THE CITY IS GOING TO MAINTAIN THE SURFACE STRUCTURE OF THE ROAD AS AS LONG AS WE CAN. YOU KNOW, TIDAL INFLUENCES ARE IMPACTING THAT ROAD. YOU MEAN JUST REPAIRING THE ASPHALT, THAT KIND OF THING? YEAH. YEAH. WAYFINDING SIGN PROGRAM. THERE WAS SOME DISCUSSION ABOUT RESPONSIBILITIES ON THAT. SO IT WAS CLARIFYING THE INTERLOCAL. THAT'S A TOURISM PROGRAM. [02:35:02] IT'S SOLELY ON THE PARK BOARD. AND SO THAT'S CLARIFIED IN IN THE INTER LOCAL ON THE PARK TRANSITION. THAT'S GOING TO BE SOMETHING THAT WE'VE FIGURED OUT AS WE'VE WORKED THROUGH THE PROCESS THAT EVERYTHING ISN'T GOING TO HAPPEN BY OCTOBER 1ST. THERE'S GOING TO BE SOME PROJECTS THAT GO BEYOND OCTOBER 1ST. SO WE HAVE LANGUAGE IN THE LOCAL TO ADDRESS HOW THE FUNDING WOULD BE HANDLED FOR THE WORK THAT THE PARK BOARD IS GOING TO BE DOING ON ONGOING FEMA PROJECTS, FOR EXAMPLE AS WE TRANSITION THOSE PARKS, THE FINAL PIECE AND IT'S NOT FINAL YET, BUT THE USS CABAL AND USS STEWART, AS MOST OF YOU KNOW, THAT'S AT SEAWOLF PARK, THAT IS A JOINT BUSINESS VENTURE BETWEEN THE PARK BOARD AND THE FOUNDATION OVER THERE. THE CITY HAS NO SKIN IN THAT GAME OTHER THAN THE FACT THAT WE'RE GOING TO BE LEASING THEM THE LAND WHERE THAT OPERATES. SO WE'RE GOING TO ENTER INTO A LEASE, A SEPARATE LEASE WITH THEM ON THAT LAND, LIKE WE DO FOR OTHER THINGS IN PARKS, AND THAT WILL COME BACK TO COUNCIL FOR CONSIDERATION. BUT THAT'S THE PIECE OF THIS THAT'S UNIQUE NOW, BECAUSE OF THAT RELATIONSHIP WITH THEM, IS A PORTION OF THEIR TICKET SALES OVER THERE. COME TO THE PARK BOARD AT THIS POINT I BELIEVE IT DOES. I DON'T KNOW I DON'T KNOW THE OPERATING AGREEMENT WITH THE KAVALA. OKAY. BUT THAT'S FINE. IT'S THE CITY'S NOT INVOLVED IN THAT AT ALL. THAT'S WHAT I WAS GOING TO ASK. YOU'RE NOT INVOLVED IN THAT IN ANY WAY, SHAPE OR FORM RIGHT NOW. THERE'S A THERE'S A CO-MINGLING OF THINGS BECAUSE OF THE FACT THAT THERE'S NOT A SEPARATE METER FOR ELECTRICITY. SO THERE IT'S AND WE'RE GOING TO ADDRESS ALL OF THAT AS THE TRANSITION TAKES PLACE. SO WHO LEASED IT TO HIM BEFORE. PARDON ME. WHO LEASED THEM THE LAND BEFORE THAT? WELL THEY DID IT TO THEMSELVES AS THE PARK BOARD MANAGED THE PARK. SO THEY ALLOWED THIS TO. CAVALLO HAS BEEN THERE A LONG TIME SINCE I, SINCE I WAS A KID. 70S? YEAH. SO THEY JUST SET UP AND DIDN'T SAY THAT. YOU'RE A KID IN THE 70S, 74. ESTABLISHED A LEASE WITH THE. YEAH. THEY ARE IN A BUSINESS VENTURE WITH THE KABBALAH, SO THERE IS NOT A SEPARATE LEASE BETWEEN THE CITY AND THEN. BUT SINCE WE'RE GOING TO TAKE THE PARK MANAGEMENT OVER, THE CLEANEST WAY FOR US TO DO IS GOING TO HAVE A LEASE WITH THEM FOR THE USE OF THE LAND, BECAUSE WE'RE NOT IN THE BUSINESS OF MANAGING OR OPERATING THE MUSEUM, WE'RE JUST PROVIDING THE LAND FOR THEM TO DO THAT. I KNOW THAT'S A QUICK OVERVIEW. MARY, YOU GAVE ME 20 MINUTES. I'M GONNA DO MY BEST TO STICK TO IT ON THE INTERLOCAL. LIKE I SAID, WHERE DO WE BRING THAT TO YOU? WE'VE WORKED DILIGENTLY AS STAFFS COLLECTIVELY BETWEEN THE PARK BOARD AND MARTY. SIX WEEKS HIS HEAD'S BEEN SPINNING AS WE AS WE WORK THROUGH THESE VARIOUS AGREEMENTS AND CONTRACTS. BUT WE BELIEVE WE HAVE SOMETHING THAT WE'RE GOING TO BE BRINGING YOU THIS MONTH THAT WILL BE A FINAL RECOMMENDED BY STAFF, THE COUNCIL AND TO THE TRUSTEES. SOUNDS GOOD. HOT CONTRACT? YES. I GOT A QUESTION ON THIS. GO RIGHT AHEAD. WHERE ARE WE GOING? I THINK I THINK SOMEWHERE IN HERE IT SPELLED OUT THE AREA OF THE SEAWALL, RESPONSIBILITIES BEING LIKE SEVENTH STREET ALL THE WAY TO THE END, WEST END OR SOMETHING LIKE THAT. IS THAT RIGHT? YOU'RE TALKING ABOUT LIKE THE SEAWALL URBAN PARK MAINTENANCE? YEAH, MAINTENANCE. 6 TO 100 AND THIRD. YEAH. OKAY. WELL, THERE'S OTHER MAINTENANCE THAT TRANSPIRES ALL OVER BETWEEN BODDICKER AND SIXTH. ALSO. THAT WAS MY THAT WAS MY QUESTION, THAT BODDICKER, THE SIXTH STREET HAS ALWAYS BEEN KIND OF A STEPCHILD. YOU KNOW, IT'S. AND IF WE'RE GOING TO HAVE A NEW EAST END LAGOON FACILITY OUT THERE, I THINK WE NEED TO START PAYING ATTENTION TO THAT OUT THERE. IT'S, YOU KNOW, THE SIDEWALK IS TORN UP. IT'S FULL OF GLASS. IT NEEDS TO BE A LITTLE IT NEEDS TO BE HAVE SOMEBODY SPECIFIED TO TAKE CARE OF IT AND MAINTAIN IT. THERE MAY BE SOME TOURISM DOLLARS TO DO THAT. YES, IT WILL BE. BUT WHOSE RESPONSIBILITY WOULD THAT BE? IS THAT PARK BOARDS? OR IF IT'S GOING TO BE INTEGRAL TO THE EAST END LAGOON, I WOULD THINK THAT WOULD BE TOURISM DOLLARS, NOT CITY. WOULD THAT BE PARK BOARD COULD BE YET TO BE DISCUSSED. THE EASTERN LAGOON ISN'T DEVELOPED. WE DON'T KNOW WHAT IT'S GOING TO BE YET. YEAH, BUT THAT THAT AT THAT PART OF THE SEAWALL THERE HAS BEEN NEGLECTED. THIS LOOKS LIKE AN OPPORTUNITY TO ME TO ASSIGN SOME RESPONSIBILITY AND TRY TO TRY TO GET IT TAKEN CARE OF. I THINK I DON'T DISAGREE, BUT I THINK THAT'S A FUTURE DISCUSSION OUT OF TODAY'S DISCUSSION. RIGHT. HOPEFULLY WE CAN GET IT IN HERE BEFORE. I DON'T ANTICIPATE WE DON'T HAVE ANY PLANS BECAUSE WE DON'T KNOW WHERE IT'S GOING TO HAPPEN WITH EASTERN LAGOON. I DON'T KNOW HOW WE COULD, BUT IT'S NOT NECESSARILY TIED TO THE EASTERN LAGOON. IT'S IT'S SIMPLY THERE. IT'S A FACT. IT'S NEGLECTED. IT'S NOT MAINTAINED AS PART OF THE SEAWALL. I THINK IN THE INTERLOCAL, WE DISCUSSED THE CLEANING AND MAINTAINING, PICKING UP TRASH IN THAT AREA. AND BUT YEAH, WE DON'T KNOW ABOUT THE REPAIRS, THE SIDEWALKS AND THE RECONSTRUCTION, THE SEAWALL. NO, THAT'S NOT PART OF THE INNER LEVEL. THAT'D BE THE CITY ANYWAY, WOULDN'T IT? THAT'S THAT COULD VERY WELL BE. IT COULD BE THE CORE. IT COULD BE THE COUNTY. I MEAN, THE SEAWALL IS NOT THE CITY'S. THE SEAWALL ITSELF. THAT IS THE THE SIDEWALK PART OF THE SEAWALL GET REPAIRED IN OTHER PLACES. COUNTY. DOES IT. COUNTY. YEAH, MARIE. WHY? JUST SINCE WE HAVE MARTY MILES HERE, I WONDER IF. DID YOU HAVE ANY COMMENTS YOU WANT TO MAKE? [02:40:02] THANKS FOR THE OPPORTUNITY. OUR TEAM IS. I'LL COME UP AND INTRODUCE YOURSELF. 30 MILES, INTERIM CEO OF THE MICROPHONE. ROGER POINTED THIS OUT IN A MEETING YESTERDAY MORNING. ROGER REES. SINCE MARTY HAS BEEN INTERIM, THE WATER HAS BEEN BLUE. PRETTY AMAZING. IT'S TRUE. OUT OF MY POCKET, NOT THE CITY'S BUDGET. WE'VE WORKED IN TANDEM. REALLY, REALLY WELL. THAT'S. NOBODY'S BEEN BLOWING SMOKE. I THINK THE INTERLOCAL DOES EVERYTHING IT NEEDS TO DO FOR US TODAY. IT HAS NOT BEEN APPROVED BY OUR TRUSTEES YET, BUT I DON'T ENVISION ANY ISSUES AT THIS POINT. JUST LIKE I WOULD HOPE YOU DON'T HAVE ANY ISSUES WITH IT. SO YOUR YOUR NEXT MEETING, MARTY, FOR THE SECOND BEFORE YOURS ON THE 26TH. THANK YOU. ALL RIGHT. PERFECT. THANK YOU. I THOUGHT YOU WERE GETTING READY TO GET INTO THE CONTRACT, SO I WANT TO HANG OUT. ALL RIGHT. MARTY, WON'T YOU HAVE A SEAT? AND WE'LL KEEP YOU HERE, SITTING DOWN HERE UNTIL WE FINISH. LET ME GIVE YOU A LITTLE UPDATES ON THE HOT CONTRACT. IT'S AN ANNUAL CONTRACT, AS YOU KNOW. IT WILL BE RENEWED OCTOBER 1ST THROUGH SEPTEMBER 30TH. THE PENNY VALUE WAS SET BY THE CITY FOR DIRECTV AT 3.21 MILLION. SOME NEW SECTIONS WERE ADDED TO THE HOT CONTRACT THIS TIME, WHICH YOU SEE IN BLACK IS WHAT WAS WHAT WAS ADDED BASED ON DISCUSSIONS WITH COUNCIL AND BASED ON DISCUSSIONS BETWEEN STAFF. THE RED ARE CHANGES THAT WERE ASKED FOR BY THE PARK BOARD THAT THE CITY HAS AGREED TO. AT LEAST STAFF HAS AGREED TO. THERE ARE PROHIBITIONS OF USE OF HOT. ATTORNEY FEES. AND I THINK IT'S A GOOD CLARITY CHANGE TO AD NOT DIRECTED, NOT DIRECTLY RELATED TO HOT ELIGIBLE EXPENSES, FEES FOR LOBBYISTS BEFORE STATE, FEDERAL AND LOCAL LEVELS OF GOVERNMENT. AS WE ALL KNOW, THAT WAS A BIG ISSUE THIS LAST YEAR. THAT REMAINS UNCHANGED. ALCOHOL FOR EMPLOYEES AT A PARK BOARD. AND WHAT MARTY POINTED OUT AND MADE IT VERY CLEAR TO US IS SOME OF THEIR BUSINESS DEVELOPMENT ACTIVITIES IS ENTERTAINING. AND WHAT HE PROMISED US, AND I THINK IN THE THE TRUST RELATIONSHIP WE HAVE NOW, WE BELIEVE THAT THEY'RE GOING TO HAVE AN INTERNAL POLICY RELATED TO WHAT HOW THEY WILL ALLOW THAT, YOU KNOW, AND HOW FUNDS WOULD BE SPENT ON ALCOHOL BY STAFF. SO, YOU KNOW, WE ALLOWED AND WE AGREE WITH THE CHANGE THAT THEY RECOMMENDED FOR THAT. DO YOU HAVE A IDEA? SORRY TO INTERRUPT. JUST A QUICK IDEA OF WHAT A POLICY IS GOING TO LOOK LIKE SO THE PUBLIC CAN THE THE INITIAL PART OF THE POLICY IS THAT'S HALFWAY DRAFTED, IS ABOUT ABOUT THE EXCUSE ME? IT'S ABOUT OUR STAFF. AND OUR STAFF, WHILE ENTERTAINING, MAY NOT CONSUME MORE THAN ONE COCKTAIL. ON OUR ON THIS BUDGET. HOWEVER, WE WILL ALLOW THE CLIENT TO TO HAVE MORE THAN THAT. BUT IT'S IT'S ACTUALLY EXTREMELY STRICT COMPARED TO OTHER DEMOS. YES, BUT IT ALLOWS US TO NOT EMBARRASS THE CLIENT. I STILL DO YOUR JOB. YEAH, I ACTUALLY LIKE THE POLICY. ANYWAY, EVEN IF IT WEREN'T ABOUT BUDGET, I LIKE THE POLICY BECAUSE I THINK YOU NEED TO BE PRETTY CLEAR WHEN YOU'RE ENTERTAINING. IT'S. IT'S NOT A BOONDOGGLE. YEAH. NEXT ITEM IS THE ONE THAT CAME UP IS PERSONAL SERVICES FOR EMPLOYEES. AND AGAIN, WE TIED THE SAME STIPULATION TO IT, UNLESS IT'S PART OF THEIR BUSINESS DEVELOPMENT ACTIVITY. SO YOU MAY TAKE A CLIENT OUT TO ENTERTAIN THEM TO AN EVENT OR SOMETHING ELSE. WELL, THAT WOULD BE SOMETHING PERSONAL TO WHETHER IT'S A GAME TICKET OR AN EVENT OR A GOLF PLAY. GOLF. IT'S PART OF THE ACTIVITY. SO, YOU KNOW, THAT SHOULD BE ALLOWED. AND AGAIN, MARTY'S ASSURED US THEY'RE GOING TO HAVE A GOOD, SOLID INTERNAL POLICY ON DOING THAT. AND THAT'S SOMETHING THAT WE CAN GO BACK AND TEST. AND, YOU KNOW, THE FUTURE CEO LEADERSHIP OF THE PARK BOARD IS GOING TO BE ABLE TO SAY WE HAVE A POLICY. THIS IS WHAT'S ALLOWED, AND WE GO FROM THERE. SO IN THE SPIRIT OF COOPERATION, WE BELIEVE THAT'S AN APPROPRIATE CHANGE ALSO. SEVERANCE PAY FOR EMPLOYEES WOULD BE PRECLUDED EXCEPT FOR EXISTING AGREEMENTS. THERE IS ONE REMAINING SEVERANCE AGREEMENT OUT THERE IN THE PARK BOARD. AND SO THAT WAS BEEN A STIPULATION BEFORE THAT WERE EXISTED, THERE WERE EXISTING AGREEMENTS. SO THAT REMAINS INCENTIVE PAY OR BONUSES FOR PARK BOARD EMPLOYEES. WELL, EXCEPT FOR THE SALES TEAM MEMBERS AND INCREASED HOTEL STAYS TO ESTABLISH GOALS APPROVED BY THE CEO. SO AGAIN, IT GETS BACK TO THEM HAVING GOOD SOUND POLICIES, AND THAT IS A TRADITIONAL WAY TO COMPENSATE PEOPLE IN THAT LINE OF WORK. SO WE'RE COMFORTABLE WITH THAT CHANGE ALSO. I HAVE A QUESTION FOR YOU. SEVERANCE PAY FOR ANY EMPLOYEE. DOES THAT MEAN THAT ANY FUTURE EMPLOYEE CONTRACTS WON'T HAVE ANY SEVERANCE CLAUSE IN THEM? IT MEANS IT CAN'T BE PAID WITH HOT. [02:45:02] OH, WITH HOT, BUT WITH HOT. YOU STILL HAVE SEVERANCE? SURE, BUT YOU JUST DON'T PAY FOR IT WITH HOT. CORRECT. OKAY. YEAH. OKAY. THE NEXT THING IS THAT OUR CONTRACT IS JUST DISTRIBUTIONS OF 100% OF THE BUDGET. QUARTER ONE IS GOING TO BE 25. IT'S GOING TO BE LINEAR 25%, 25%, 25%, AND 25%. THE FOURTH QUARTER IS WHERE THERE'LL BE. IF HOT COMES IN LOW, THEN THAT AMOUNT WOULD BE DECREASED IN THE FINAL QUARTER. AND THE CONTRACTS AND IN THE INTERLOCAL, THE LANGUAGE STIPULATES THAT WE'RE GOING TO STAY IN COMMUNICATION. WE TALKED ABOUT THE REPORT AND WE'RE GOING TO STAY IN COMMUNICATION FROM THE CITY TO THE PARK BOARD AND VICE VERSA. RELATED TO WHAT HOTZ DOING, WE'RE GOING TO GIVE THEM ALL THE REPORTS THAT WE RECEIVE, AND WE'RE GOING TO SO THAT THEY CAN MONITOR TO MONITOR IT ALSO AND MAKE NECESSARY CHANGES OPERATIONALLY. IF IF THE PENNY IS COMING IN LOW, THEY KNOW THAT THEY'RE GOING TO HAVE TO REDUCE THEIR BUDGET SO THEY DON'T GET STUCK AT THE END OF THE YEAR OR IN THE MIDDLE OF THE PROJECT. THEY CAN'T FUND OR SOMETHING, CORRECT? YEAH. THIS IS DIFFERENT THAN THE WAY IT WAS BEFORE IT WAS. WE FUNDED 95% OF THE PROPERTY IN THE POCKET, RIGHT? YEAH, YEAH. AND IF YOU REMEMBER, WE TURNED UP QUARTERLY, RIGHT? NO, NO, IT WAS ALL THE WAY AT THE END OF THE FOURTH QUARTER OF THE YEAR. AND IF YOU REMEMBER, DURING THE LONG, LONG, LONG LEGISLATIVE SESSION, THE ISSUE CAME UP WHERE WE WERE ACCUSED OF NOT FUNDING THE PARK BOARD 100%. AND APPARENTLY THE LANGUAGE OF THE 95% FUNDING WITH THE TRUE UP CAUSED GREAT CONFUSION IN AUSTIN. SO THIS IS MUCH CLEANER. IT IS MUCH CLEANER THAN I SAY. IT WAS A LONG LEGISLATIVE SESSION, OH, YEAH. YOU KNOW, A TERRIBLY LONG, LONG, LONG, LONG, LONG. YEAH. TERRIBLY LONG LEGISLATIVE SESSION. OUTSTANDING ISSUES FROM THE CITY'S PERSPECTIVE IS RIGHT NOW, THE PARK BOARD HAS RESERVES. THEY'VE STIPULATED THAT THEY HAVE 120 DAYS OF RESERVES, BUT THEIR CURRENT RESERVE POLICY SAYS THEY CAN'T TOUCH THAT MONEY FOR ANYTHING. AND THAT POLICY WILL HAVE TO CHANGE IF THE PARK BOARD IS GOING TO OPERATE GOING FORWARD. BECAUSE WHAT THEY WERE ABLE TO DO IN THE PAST IS THERE'D BE MONEY FROM SEAWOLF OR DYLAN ERA, AND THEY MANAGE THEIR CASH FLOW BECAUSE THEY HAD A LOT OF CASH COMING FROM A LOT OF DIFFERENT SOURCES UNDER THEIR OPERATION. NOW THEY'RE NOT GOING TO HAVE CASH FROM A LOT OF DIFFERENT SOURCES. THEY'RE GOING TO BE FUNDED BASED ON FEES FOR SERVICES. THEY'RE GOING TO BE FUNDED BASED ON HOT ALLOCATIONS. SO IF THERE ARE HICCUPS ALONG THE LINE THAT THAT IMPACT THEIR INCOME STREAM, THEIR CURRENT POLICY DOESN'T ALLOW THEM TO HIT THEIR RESERVES FOR THAT. SO THAT WOULD WOULD HAVE TO CHANGE. AND WE'VE RAISED THAT, AND MARTY KNOWS THAT'S SOMETHING HE'S GOING TO HAVE TO TAKE TO HIS TRUSTEES AND GET THEM TO WEIGH IN ON. BUT, YOU KNOW, IT'S SOUND BUSINESS PRACTICES. IT'S WHAT CITIES DO ACROSS THE STATE AND ACROSS THE COUNTRY AS YOU MANAGE YOUR GENERAL FUND BALANCE. AND THAT'S HOW COME SOMETIMES WE'LL HAVE 120, SOMETIMES WE'LL HAVE 114 DAYS OF GENERAL FUND BALANCE BECAUSE THERE'S THESE UNEXPECTED BLIPS IN YOUR CASH FLOW. SO THAT'S SOMETHING WE'LL HAVE TO CHANGE AT THE PARK BOARD TO, TO ENABLE THEM TO OPERATE IN A NEW STRUCTURE AS THEIR, AS THEIR CASH FLOWS COME FROM DIFFERENT SOURCES. SO THAT THAT MORE CLEARLY MATCHES WHAT THE CITY DOES, I GUESS. OH IT DOES, YES. THE IN THE BUDGET. MARTY, YOU YOU ALLOW FOR THAT 120 DAY RESERVE. YOU'RE MANAGING THAT TO KEEP THAT AT 120 DAYS. IS THAT GOOD? THE ONLY REASON I THINK HE'S BRINGING THIS UP RIGHT NOW IS SPECIFICALLY BECAUSE WE HAVE TO CHANGE OUR BYLAWS TO DO THIS RIGHT, AND IT WILL BE READ AT THE MEETING ON THE 22ND. OKAY. IT'S YOU KNOW, THE OTHER THING, AND I. AND I DIDN'T HIT ON IT, BUT THE FACT THAT THE PARK BOARD CAN HAVE UNEXPECTED ISSUES, MUCH LIKE THE CITY DOES. WE'VE GOT A LARGER POT TO SPREAD THOSE UNEXPECTED YOU KNOW, CASH NEEDS ACROSS. BUT THERE COULD BE TIME THAT A PIECE OF EQUIPMENT FAILS AND THEY HAVE TO SPEND $300,350 TO BUY A NEW GARBAGE TRUCK. WELL, THAT COULD SIGNIFICANTLY IMPACT THEIR RESERVES. AND SO WHAT WE'VE DONE IS WE'RE ALLOWING IF THE PARK BOARD SAVES MONEY THROUGHOUT THE YEAR ON THEIR BUDGET PRIOR YEAR OUT OF CONTRACT, THAT MONEY HAD TO COME BACK TO THE CITY. WHAT WE'RE SAYING NOW IS THEY CAN RETAIN THAT TO REPLENISH THEIR RESERVES BACK UP TO THE 120 DAYS. THAT'S A GOOD THAT'S A GOOD. AND AND AND IT ALLOWS IN INTERACTION WITH COUNCIL THAT ALLOWS THEM TO MAINTAIN THAT 120 DAYS. AND IT ALSO ALLOWS THEM TO WORK THROUGH THE CIP AND DEVELOP ADDITIONAL FUNDING NEEDS FOR CAPITAL PROJECTS. WHERE ADDITIONAL FUNDS CAN BE THROUGH THEIR FRUGAL SPENDING OF FUNDS, THEY CAN BUILD THOSE RESERVES UP ON THE SIDE TO PAY FOR PROJECTS. IT'S A GOOD IDEA AND VERY GOOD ONE. IF YOU'VE GOTTEN TO IT YET THE THE REPORTING ASPECT THAT WAS IN THE EXISTING, IT WOULDN'T BE AN UPDATE, BUT IT WOULD BE IT WAS IN THE EXISTING ONE. HAVE WE TALKED ABOUT KIND OF MAKING THE REPORT OF EXPENDITURE REPORTING A LITTLE MORE ROBUST? AND I THINK IT NEEDS TO. [02:50:02] I'M NOT SURE ROBUST IS THE RIGHT WORD. I THINK THAT WHAT WE'RE GETTING NOW, WE'RE GOING TO GET A MORE DETAILED LEVEL OF INFORMATION FROM THE PARK BOARD THAN WE'VE RECEIVED IN THE PAST. AND AND WE PROMISED THE SAME THING FROM OUR SIDE BACK TO THEM. SO I DON'T THINK THERE WAS ANYTHING WRONG WITH THE LANGUAGE. I THINK IT WAS I JUST WAS IT WAS THE EXECUTION VERSUS. YEAH, THAT'S THE I WAS YEAH, IT WAS KIND OF YEAH, WE'RE I THINK WE'RE FINE. OKAY. GOOD. THAT'S IT. THAT'S ALL I HAVE FOR YOU GUYS. THIS MORNING I WILL TELL YOU THAT WE'LL BE BRINGING BOTH THOSE TO YOU ON THE 28TH 2020 8TH OF AUGUST. BEAU. MAYBE I MISSED IT, BUT THERE WAS WORDING IN THE PAST OF AND I THINK THAT THE CITY NEEDS TO TO REVIEW IT AS WELL, BUT HOT TAX PAYING FOR STATE LOBBYISTS, IT'S PRECLUDED THAT IT WAS ON THERE. IT WAS ALL THERE ON. I PROBABLY SKIPPED OVER QUITE HONESTLY. OKAY. DO YOU HAVE ANY COMMENTS, BARNEY WHERE CONCERNS OR I'M OUR TEAM IS AGAIN I'M SPEAKING SHORT OF TRUSTEE APPROVAL, BUT OUR TEAM IS VERY PLEASED WITH WHERE WE ARE ON BOTH HOT AND INTERLOCAL. GOOD. I GREATLY APPRECIATE THAT, MARTY. IT'S REFRESHING TO COME AND HAVE THIS INTERLOCAL PRESENTED AND HAVE BOTH STAFFS ON BOARD WITH THIS. THANK YOU FOR THAT. IF I MAY, I THINK IT'S BECAUSE OUR CULTURE IS CHANGING AND PRETTY QUICKLY, AND WE ARE WORKING VERY, VERY HARD TO UNDERSTAND WHERE WE REALLY FIT, WHERE FUNDS ARE NEEDED MOST AND CLEARLY HOW THEY'RE DEVELOPED OR HOW THEY'RE RECEIVED. SO. I JUST WANT TO CONTINUE TO BE IN SYNC WITH THESE GUYS, WHICH MEANS WITH YOU, OBVIOUSLY. AND, AND TO DATE NOTHING THAT WE'VE TALKED ABOUT SO FAR TODAY IS, IS NOT IN CONCERT WITH WHERE OUR TEAM IS HEADED. IT HAS BEEN A TRUE PLEASURE WORKING WITH MARTY. AND OUTSIDE OF SOME HAPPY DISCUSSIONS THAT HE AND I NEED TO HAVE. IT'S EARLY. WE ARE IN SIX WEEKS. A LOT HAS HAPPENED IN SIX WEEKS SINCE MARTY GOT TO THE HELM AT THE PARK BOARD. IT'S 11:58 A.M. TODAY IN AUGUST 14TH. BUT WHAT? I PROBABLY DID SKIP OVER THAT. IT'S THERE. IT IS ON THE SLIDE NOW. IT WAS UNCHANGED BECAUSE THAT WAS THE PROHIBITION FOR FEES FOR LOBBYISTS, FOR STATE, FEDERAL AND LOCAL LEVEL GOVERNMENT. THAT'S A PROHIBITION. THAT'S IN THE CONTRACT. OKAY. THANK YOU. VERY GOOD. THANK YOU VERY MUCH DAN. THANK YOU MARTY. APPRECIATE IT. THANK YOU. GOOD WORK GUYS. APPRECIATE IT. LET'S MOVE TO ITEM THREE. [3.C Presentation and Discussion of the FY 2025 - 2026 Park Board Budget ( C Ludanyi /Park Board Staff - 30 min )] WE SHOULD ASK HIM WHAT HIS FAVORITE ITEM THREE STATE PRESENTATION AND DISCUSSION OF THE FY 2025 2026 PARK BOARD BUDGET. I'M GOING TO INVITE SOMEBODY UP THAT HASN'T GOTTEN A LOT OF SLEEP HERE RECENTLY. SHEILA LOUDEN, OUR FINANCE DIRECTOR. SHEILA, GOOD TO HAVE YOU. YOU HAD SENT THIS OUT, I GOT IT. WAS IT EARLY THIS MORNING OR LAST NIGHT? 12:05 A.M.. WELL, THE PARK BOARD STUFF CAME A LITTLE SOONER. I THINK WE'RE DOING PARK BOARD FIRST, RIGHT? CORRECT. YES. OKAY. AND THIS AROUND HERE IT IS EARLY THIS MORNING. THANK YOU. SIR. SORRY. WATER, PLEASE. THANK YOU. OKAY, PERFECT. SO THE DRAFT BUDGET THAT'S UP THERE AT THE MOMENT. COUNCIL SHOULD HAVE RECEIVED IT IN THEIR EMAIL. AND. ABOUT THE POWERPOINT. THAT'S THE BOARD'S BUDGET. YEAH, WE READ OUR BOARD. I THOUGHT WE'RE DOING WE'RE DOING. WE HAVE A POWERPOINT. IT WAS IN THE SAME EMAIL THAT THE BUDGET WAS IN. WELL, THEY HAVE HARD NUMBERS. YEAH. IT'S MAINLY FOR THE PUBLIC. OKAY. SO IF I CAN GET STARTED AND THEY CAN POP IT UP THERE ONCE THEY FIND THOSE. SO, AS DAN PREVIOUSLY NOTED, BY THE WAY, I'M SHEILA, I'M THE CFO. AS DAN PREVIOUSLY NOTED THE PARK BOARD HAS BEEN AT A VERY FAST PACED TRANSITION OVER THE LAST SIX WEEKS ON JUNE 24TH. THEY SELECTED MR. MYLES AS THEIR NEW INTERIM CEO ON JULY 22ND, JUST FOUR WEEKS LATER. THEY PRESENTED THEIR BUDGET TO THE TRUSTEES FOR REVIEW AND APPROVAL. [02:55:02] SO THAT'S A PRETTY QUICK TURNAROUND. THE CITY RECEIVED THE BUDGET THAT WAS JUST UP THERE ON AUGUST 6TH. SO THAT WAS, I WANT TO SAY, LAST WEDNESDAY. DOES THAT SOUND RIGHT? AND SO WE'VE ALSO BEEN BUSY DURING THAT PERIOD. SO IT HAS BEEN A VERY SHORT SIX WEEK TIMELINE. AND THE CITY HAS DONE A LIMITED REVIEW IN THIS CONSTRAINED TIMELINE. BUT I THINK WE CAN GIVE YOU A HIGH LEVEL UNDERSTANDING OF WHAT THE PARK BOARD HAS PRESENTED HERE AND WHAT OUR RECOMMENDATIONS ARE. SO ON THE NEXT PAGE, I JUST HAVE PLUGGED IN THE SUMMARY THAT THE PARK BOARD HAS IN THEIR BUDGET. THIS IS A SUMMARY OF ALL OF THEIR REVENUE AND EXPENDITURES AS THEY HAVE THEM PROGRAMED FOR FY 26. I WANT TO BRING TO YOUR ATTENTION THAT HOTEL OCCUPANCY TAX FOR FY 26. THEY HAVE PROGRAMED AT $19.2 MILLION. OKAY. TWO LINES DOWN FROM THAT. YOU'RE GOING TO SEE CITY OF GALVESTON FOR $2.3 MILLION. AND THAT IS ADDITIONAL NON HOT FUNDS THAT THE CITY IS USING TO DO CERTAIN ACTIVITIES WITH THE PARK BOARD, SUCH AS WE'RE CONTRACTING WITH THEM TO DO THE SEAWALL MAINTENANCE. PREVIOUSLY IT WAS SEAWALL URBAN PARK AND NOW THE CITY IS GOING TO BE COLLECTING THOSE BEACH USER FEES, AND WE ARE PAYING THE PARK BOARD TO DO THOSE SERVICES. SO THOSE ARE THE KINDS OF THINGS INCLUDED IN THAT. WE'RE GOING TO GO OVER THAT. OTHER THAN THAT, YOU'RE GOING TO SEE IN THAT INCREASE DECREASE COLUMN YEAR OVER YEAR, A LOT OF READ WHERE THEIR BUDGET IS DECREASING AS A RESULT OF THE SERVICES COMING TO THE CITY. OKAY. SO THAT'S WHAT THAT IS REFLECTIVE OF. AND YOU'LL SEE THERE ARE LARGEST INCREASES YEAR OVER YEAR IN GRANTS AND FEMA BASED ON ACTIVITIES THAT THEY'VE STARTED PREVIOUSLY AND WILL CONTINUE TO DO INTO THE FUTURE. BUT THERE'S LARGE INCREASES PROJECTED RELATED TO THOSE PROJECTS. THEIR FUND BALANCE PRESENTATION HERE IS A ALL IN FUND BALANCE PRESENTATION. IT DOESN'T NECESSARILY GIVE YOU THE NUANCE OF EACH INDIVIDUAL FUND. SO WE'LL TALK ABOUT THAT. SO YOU'RE NOT SEEING THE DEFICITS IN THAT PRESENTATION. BUT THEY'RE ALL IN FUND BALANCE IS 11 POINT CLOSE TO $7 MILLION. SO THE NEXT PAGE UP. IS JUST KIND OF A RUNDOWN OF WHAT. FUNDS THAT ARE NOT HOT, THAT WE'RE CONTRIBUTING TO THE PARK BOARD FOR THEIR OPERATIONS. BEACH CLEANING IS WHERE THAT 305,000 AND THAT 671,000 THAT DAN DISCUSSED IN HIS INTERLOCAL PRESENTATION. THAT'S WHERE THEY'RE CAPTURING THAT SINCE THEY NO LONGER HAVE THE SEAWALL URBAN PARK FUND, THEY'VE MOVED THOSE ACTIVITIES UNDER BEACH CLEANING, AND THAT'S WHERE THEY'VE CREATED A SEPARATE DEPARTMENT TO RECOGNIZE THOSE ACTIVITIES. AND THAT'S WHERE THAT MONEY IS GOING. THERE'S $66,000 GOING TO THE GENERAL FUND. THERE IS 1.2 MILLION GOING TO TOURISM DEVELOPMENT. THIS IS SPECIFICALLY THE WAYFINDING SIGNAGE AND THE ONGOING PROJECT. AND THEN WE'RE CONTINUING THE EAST END LAGOON CONTRIBUTION THAT GOES THROUGH 2028, I BELIEVE. SO THE CITY CONTRIBUTION TO PARK BOARD IS ABOUT $2.3 MILLION. SO AS A REVIEW WE KNOW THAT WE'VE ESTABLISHED THE PENNY FOR THIS YEAR AT $3,210,000. THE PARK BOARD WILL CONTINUE TO RECEIVE THE FOUR LOCAL PENNIES AND THE TWO STATE PENNIES FOR TOURISM DEVELOPMENT, BEACH CLEANING, BEACH PATROL AND BEACH NOURISHMENT. THE BUDGET, AS I NOTED EARLIER, REFLECTS RECEIPT OF THE FULL SIX PENNIES AT 3.2 MILLION, WHICH IS A 19.2 $19.3 MILLION. SO, AS WE KNOW, THE CITY WILL BEGIN COLLECTING HOT AS OF OCTOBER 1ST. THE CITY OVERSEES ALL HOT ACTIVITIES RELATED TO THE OTHER FIVE PENNIES, RIGHT? SO THAT INCLUDES ARTS, CULTURAL EVENTS, ARTS, HISTORICAL PRESERVATION, ALL OF OUR DEBT SERVICE OBLIGATIONS RELATED TO THE CONVENTION CENTER, ALL THE CONVENTION CENTER ALLOCATIONS, AND THE CONVENTION CENTER SURPLUS. AND THIS INCLUDES SPECIAL EVENTS AND ISLAND TRANSIT TROLLEY OPERATIONS AS WELL AS NOW COLLECTIONS. AND SO BEGINNING FY 26, THE CITY WILL USE OUR 4% ADMINISTRATIVE FEE AND APPLY IT TO HOT AS WELL AT THE TIME OF COLLECTION. I'VE GOT A QUESTION. SURE, THAT 4% THAT HAS NOTHING TO DO WITH THE PARK BOARD'S BUDGET. SO THE 4% IS OUR ADMINISTRATIVE OVERHEAD COSTS. OKAY. CITYWIDE, THAT IS WHAT OUR ADMINISTRATIVE OVERHEAD COSTS ARE. THEY'RE 4%. AND SO FOR ADMINISTERING ALL OF THOSE HOT ACTIVITIES AS WELL AS COLLECTIONS, THE CITY WILL TAKE THE 4% ADMINISTRATIVE. OKAY. ALL RIGHT. THAT HAS REALLY NOTHING TO DO WITH IT. OR IT DOES. IT DOESN'T COME OUT OF A PARK BOARD APPROVED BUDGET. NO. SO WHAT'S GOING TO HAPPEN IS THE CITY IS COLLECTING THE FUNDS. OKAY. ALL OF THE HOT. AND BEFORE ANYTHING IS DISPERSED, THE CITY WILL TAKE THE 4% ADMINISTRATIVE. YOU HAVE LESS MONEY GOING TO THE PARK. [03:00:02] OKAY. SO I REMEMBER WHEN WE WHEN WE WERE TALKING ABOUT TRANSFERRING THESE PARKS OVER AND THE COLLECTION AND ALL THAT STUFF, WE WERE TOLD THAT IT WOULD BE A LOT LESS EXPENSIVE TO DO THAT BECAUSE OF DUPLICATION OF SERVICES AND EXISTING STAFF THAT COULD HANDLE SOME OF THESE THINGS. I GUESS THAT WAS THAT TAKEN INTO CONSIDERATION. SO THAT'S GOING TO BE ON THE PARK SIDE AND NOT SO MUCH ON THE HOT SIDE. OBVIOUSLY THERE'S LESS TRANSFER OF MONEY BETWEEN. WE'RE ONLY DOING THE ONE TRANSFER NOW RIGHT. CITY IS GOING TO BE COLLECTING AND WE'RE GOING TO BE DOING THAT QUARTERLY TRANSFER. SO THERE'S LESS MOVEMENT OF MONEY BACK AND FORTH. I THINK THAT WAS DISCUSSED IN PREVIOUS YEARS AS A CONCERN. BUT SO AS FAR AS HOT IS CONCERNED, IT'S THE ADMINISTERING OF THE FIVE PENNIES IN THE COLLECTION THAT THAT ADMINISTRATIVE OVERHEAD IS TIED TO. YEAH, YEAH. OKAY. SO THAT'S, THAT'S THE THINGS THAT THE CITY IS ACTUALLY ADMINISTERING. SPECIFICALLY NOTHING THAT THE PARK BOARD IS ADMITTING. THAT'S CORRECT. YEAH. THE PARK BOARD ADMINISTERS THE OTHER SIX PENNIES, AND WE ADMINISTER THIS FIVE PENNIES. OKAY. THAT'S IT'S RELATED TO THAT. YES. OKAY. MARIE. SO WHERE DID THE 4% COME FROM? SO THAT'S THE 4% OVERHEAD CALCULATION THAT'S IN THE CITY'S BUDGET OVERALL. SO THAT'S THE 4% WE'RE APPLYING TO ALL THE FUNDS, WHETHER IT'S ENTERPRISE FUNDS OR WHATEVER. THAT'S THE 4% ADMINISTRATIVE FEE. THE OVERHEAD CALCULATION, I WANT TO SAY IS ON PAGE 26 OF THE INTRODUCTION, BUT WE CAN REVIEW THAT AS WELL. WHERE DOES THAT REVENUE FALL IN THE GENERAL FUND. IN GENERAL FUND. YEAH. IT'S THE OTHER FUNDS PARTICIPATING IN THE ADMINISTRATION COSTS THAT ARE IN THE GENERAL FUND. SO THAT'LL GO TOWARD THAT. I'M SORRY. THAT'LL BE THAT, THAT, THAT IS THAT WILL INCREASE OUR GENERAL FUND THAT, THAT. WELL, IT IS PART OF THE REVENUE THAT IS BALANCING YOUR GENERAL FUND. THAT IS CORRECT. ABSOLUTELY. BUT A FINANCE FOR THE PURPOSES OF COLLECTION OF HOT TO GO TO. WHAT ELSE. SO ANY ADMINISTRATIVE OKAY. HOLD ON. LET ME SEE. I'M GOING TO LOOK AT YOUR BOARD OR IS THIS MINE OKAY. IF YOU LOOK AT YOUR BUDGET DOCUMENT ON PAGE. YEAH. PAGE IS FOUR. SO YOU GO BEYOND THE BUDGET SUMMARY SECTION AND IT'S THE SECOND SHEET OF PAPER, THE BACKSIDE OF IT OR I'M SORRY, THE INTRODUCTION INTRODUCTION SECTION. MINUS FOUR IS FOUR. OKAY. AND HERE YOU'RE SEEING THE 2016 COMPARISON TO THE 25 ESTIMATED AND THE 26 PROPOSED. THE ITEMS AT THE TOP, THE ADMINISTRATIVE OFFICES ARE ALL OF THE OVERHEAD ITEMS THAT THE CITY HAS CALCULATED IS OVERHEAD ITEMS SINCE LONG BEFORE I WAS HERE. AND SO THE SUBTOTAL ON THAT IS THE 8.9 MILLION. OKAY. THE OPERATING BUDGET FOR 26 IS THE 249 MILLION CAPITAL IS 303. YOUR TOTAL IS 553.2 MILLION. WHEN YOU LOOK AT ADMINISTRATION AS A PERCENT OF THE OPERATIONS PORTION. IT'S THE 4%. WHEN YOU LOOK AT IT AS A PERCENT OF CAPITAL AND OPERATIONS, IT'S 2%. SO THAT 4% IS WHAT IS BEING USED IN ALL OF YOUR REVENUE IN THE GENERAL FUND FOR THE CALCULATION OF THOSE ADMINISTRATIVE FEES, WHICH ARE GOING TO FIND ON PAGE G, F G FOUR AND FIVE. SO GO BEYOND THE GENERAL FUND TAB AND IT'S THE SECOND PAGE. AND SO UNDER LICENSES AND PERMITS YOU'RE GOING TO SEE THE TAX CODE. OH SORRY. YEAH. THE INNER FUND TRANSFERS SECTION WHICH IS GOOD. YOU SEE WATER FUND ADMINISTRATIVE SERVICES V SEWER FUND ADMINISTRATIVE SERVICES FEE. AND WE'RE APPLYING THE SAME 4% IN ALL OF THOSE AREAS. AND SO YOU'RE GOING TO SEE IT UNDER HOT FUND COLLECTIONS AND STR REGULATION. AND IT'S THE SAME 4%. SO DO WE TAKE THAT OUT OF THE GARAGE AND OUT OF IT ALSO. SO THOSE ARE INTERNAL SERVICES. AND IT GOES THE OTHER WAY. SO ALL THE DEPARTMENTS PAY INTO THOSE INTERNAL SERVICES, RIGHT? BECAUSE THEY'RE PROVIDING SERVICE BACK TO THE DEPARTMENT. HOW WAS THAT 4% CALCULATED? THAT'S THE CALCULATION THAT'S ON PAGE IS FOUR. SO IT'S THOSE ADMINISTRATIVE OFFICES. I MEAN, HOW DID YOU ARRIVE AT THAT METRIC OF 4% ACROSS THE BOARD ADMINISTRATIVE. THAT'S THE COST. SO THE COST OF THE $8.9 MILLION AT A COST. ALL OF THOSE ADMINISTRATIVE FUNCTIONS COST US 8.9%. AND WE DIVIDED INTO THE 249 MILLION. AND IT COST 4% OF THAT. IT REPRESENTS 4% OF THAT. AND THAT'S HOW IT'S APPLIED. SO WHY DID WE BUDGET LAST YEAR FOR 5%? WE DIDN'T. LAST YEAR WE BUDGETED 3.4%. BECAUSE ON THE ONE PAGE THERE WAS A CHANGE IN THE CALCULATION. YES. WELL SO 5%. SO IT WOULD HAVE. IT COULD HAVE BEEN UP TO 5%. [03:05:01] LAST YEAR WE ONLY BUDGETED A 3.4%. BACK TO THE CORPORATE. YES. OKAY. SO THAT'S WHERE THAT 4% COMES FROM. SO THE DISCUSSIONS WITH THE PARK BOARD THAT WE'VE ALREADY HAD, THEY'RE AWARE OF THIS, AND THERE'S CLEARLY SOME CONFLICT BETWEEN THE BUDGETED REVENUE ASSUMPTIONS THEY HAVE IN THEIR PROPOSED BUDGET AND THE CITY'S ADMINISTRATIVE FEE. AND SO THAT CITY'S ADMINISTRATOR FEE RESULTS IN A $513,000 DEFICIT FOR THEIR FUNDING PLAN. AND EVERYBODY IS AWARE OF THIS. OKAY. EXPLAIN THAT A LITTLE MORE, WOULD YOU, PLEASE, SHEILA? WELL, WHEN THE CITY TAKES THE $513,000 FROM AS THE ADMINISTRATIVE FEE, THEN IT'S TAKEN FROM THAT ORIGINAL $19 MILLION THAT THEY HAVE BUDGETED. THEY'VE BUDGETED TO RECEIVE THE WHOLE 90 MILLION. WELL, THAT'S NOT TAKEN BEFORE THEY GET THEIR 19 MILLION. IT IS. BUT THEY'RE BUDGETING TO RECEIVE ALL OF IT. THEY WEREN'T, BUT THEY WEREN'T CONSIDERING THE FACT THAT THE CITY WAS TAKING AN ADMINISTRATIVE FEE FIRST. OKAY. IF THAT MAKES SENSE. LIKE IN OUR PREVIOUS CONVERSATION, WE SAID THAT THAT DOESN'T IMPACT FULLY FUNDING THE PARK BOARD'S BUDGET FOR OPERATIONS THAT YEAR. IT COMES OUT BEFORE THAT, IT COMES OUT BEFORE THAT. BUT THEY WERE ANTICIPATING THAT THERE WAS NO ADMINISTRATIVE FEE ON THE CITY'S PART, SO THEY HAD BUDGETED TO RECEIVE THAT 513 AS WELL. SO THERE'S A FORWARD. YEAH. NO. THE FIRST TIME THEY SAW THIS WAS YESTERDAY. OKAY. AND THAT'S WHY WHEN WE GET DOWN TO WHEN SHE FINISHES THE PRESENTATION, YOU'LL HEAR WHAT OUR RECOMMENDATION IS TO COUNCIL ON WHAT WE DO GOING FORWARD. THERE'S MORE WORK TO DO BETWEEN THE CITY AND THE PARK BOARD TO FIGURE OUT A SOLUTION TO THIS. SO WHAT'S YOUR THOUGHT? WELL, I JUST WANTED TO CLARIFY, BECAUSE I THINK YOU'RE PROBABLY ASKING A QUESTION. THE EASIEST WAY TO THINK ABOUT IT IS. AND THANK YOU FOR ACKNOWLEDGING WE LEARNED THIS YESTERDAY. IT WAS A DECISION OR A DISCUSSION WE HAD YESTERDAY. IT WAS. THE 4% WAS NOWHERE IN OUR BUDGET. SO LITERALLY IT IS. 4% IS GOING TO HAVE TO. I'VE GOT TO GO FIND 4% OF OTHER EXPENSES TO CUT TO PROVIDE THAT 4% ADMINISTRATION FEE. SO AND BY THE WAY, I'M NOT FALLING ON MY SWORD OVER IT. IT'S JUST I WANT YOU TO BE AWARE OF WHAT THAT EXACTLY REALLY IS. AND SO IT'S IN THE END, YOU'LL STILL HAVE A BUDGET THAT YOU CAN WORK WITH. THERE MAY BE SOME CHANGES IN OPERATIONS OR SERVICE OR WHATEVER THAT IS TO 4%. WE HAVE TO HAVE A BALANCED BUDGET. YEAH, BUT BUT WE'RE NOT TALKING. WE'RE TALKING $513 AND $613,600. NOT GIVE YOU THE $513 RIGHT NOW. YOU GOT IT IN YOUR POCKET. NO. ANYWAY, I JUST WANTED TO MAKE SURE EVERYBODY UNDERSTOOD THAT IT FRANKLY, IT IS A NEW, UNANTICIPATED EXPENSE FROM FROM THE PARK BOARD'S BUDGET DEVELOPMENT. RIGHT. BUT I UNDERSTAND IT. WE GET IT. AND WE NOW HAVE TO GO BACK BEFORE WE PRESENT TO OUR TRUSTEES. WHAT WE'RE NOT GOING TO DO INSTEAD OF THAT. ALL RIGHT. SOUNDS GOOD. SO HOW DID THIS JUST COME UP YESTERDAY? WELL, SO WE WERE WORKING ON THE CITY'S BUDGET AND DIDN'T REALLY REVIEW EVERYTHING UNTIL JUST YESTERDAY. SO THERE'S A LOT OF MOVING PIECES THIS TIME OF THE YEAR. AND OBVIOUSLY THE BUDGET WAS RECEIVED IN THE LAST WEEK. AND WE'VE ALSO HAD TAX RATE CHANGES SINCE THEN. THERE'S A COUPLE THINGS GOING ON, BUT WE WANTED TO DEFINITELY HAVE THE CONVERSATION WITH THE PARK BOARD BEFORE WE HAVE THE CONVERSATION WITH COUNCIL. AND SO WE SPECIFICALLY SET A MEETING YESTERDAY IN ADVANCE OF THAT. AND THE REALITY IS, IS THAT WHAT'S HAPPENED AT THE PARK BOARD IN THE LAST SIX WEEKS IS, IS IS NOT GLACIAL MOVEMENT. IT IS TREMENDOUS MOVEMENT ON THE WAY THEY DO THINGS. AND UP TO THIS POINT, WE'VE HAD NO INSIDER INPUT INTO THEIR BUDGET PROCESS, AND NOR HAVE WE HAD TIME THIS YEAR TO DO THAT. EVERYTHING THEY DID WAS INDEPENDENT OF WHAT THE CITY WAS DOING ON OUR SIDE. AND, YOU KNOW, THE BUDGET CAME TO US LAST WEEK. WE'RE FINISHING UP THE CITY BUDGET. DRAMATIC CHANGES IN THAT BECAUSE OF A BIG TAXPAYER. BUT, YOU KNOW, OUR RECOMMENDATION AND I DON'T WANT TO GET AHEAD IS GOING TO BE DRIVEN BY THE NEED TO FIGURE OUT WHAT TO DO ABOUT THIS. SOME OF IT MAY BE ON THE CITY SIDE. SOME OF IT MAY BE ON THE PARK BOARD SIDE. I DON'T THINK EITHER ORGANIZATION COME FORWARD TO COUNCIL OR THE TRUSTEES RIGHT NOW AND SAY, THIS IS HOW WE'RE GOING TO SOLVE THAT, BUT WE'RE GOING TO AGREE TO WORK TOGETHER IN THE COMING WEEKS OR MONTHS TO TRY TO FIGURE OUT HOW TO SOLVE THAT. OKAY. THANK YOU. MITCH. TECTONIC. MOVEMENT. SO ONE OF THE THINGS THAT IS IN THEIR BUDGET IS MERIT INCREASES FOR AND SYSTEM WIDE. THAT'S HOT AND NOT HOT. IT'S ABOUT $287,000. AND THEIR MERIT INCREASE PROGRAM, WHICH IS ABOUT 3.1%, IS UP TO 4% BASED ON MERIT. CONVERSELY, AS WE KNOW, THE CITY BUDGET IS NOT INCLUDING ANY INCREASE FOR CIVILIANS DUE TO BUDGET CONSTRAINTS. [03:10:01] AND SO PART OF OUR RECOMMENDATION WITH THAT PART OF OUR RECOMMENDATION IS ELIMINATING MERIT INCREASES ON THE PARK BOARD SIDE, AND THIS WILL HELP DECREASE THAT DEFICIT AMOUNT. FUND BALANCES HAVE BEEN DISCUSSED PREVIOUSLY, AND WE KNOW THAT THERE HAVE BEEN SOME DEFICITS IN SEVERAL OF THE PARK FUNDS. GENERAL FUND ELEANOR AND RAFAL. AND LAST YEAR PARK BOARD DID PRESENT A A SOLUTION FOR OVERTIME, HOW THEY'RE GOING TO FIX THOSE DEFICITS. THE FY 26 BUDGET DOES NOT OBVIOUSLY FULLY CORRECT THESE DEFICITS. IT'S STILL IN THE PROCESS OF CONTINUING TO ADDRESS THEM. BUT THEY DO HAVE LIMITATIONS BECAUSE OF THE UNRESTRICTED FUNDING THAT IS AVAILABLE TO HELP PAY BACK SOME OF THOSE DEFICITS. YOU'LL SEE THE DEFICITS IN THE GENERAL FUND. WE'RE ANTICIPATING AT THE END OF THIS YEAR IT WOULD BE ABOUT $1.3 MILLION. WE DON'T HAVE ANY INFORMATION ON BASED ON THE WAY THE BUDGET IS DONE YET, BECAUSE THEY'VE REMOVED IT SINCE IT'S COMING OVER TO THE CITY. AND SO WE NEED ACTUALS TO REALLY UNDERSTAND, BUT WE'RE ASSUMING THERE'S ABOUT A $735,000 DEFICIT IN AN ERA. IT'S ANOTHER DISCUSSION AND RAFFLE. IT'S ABOUT $1.6 MILLION. SO THOSE ARE ONGOING ISSUES RELATED TO THE FUND BALANCES TO THOSE SPECIFIC FUNDS. BEFORE WE LEAVE THAT SLIDE. THE POTENTIAL FOR ELIMINATING MERIT INCREASES. IS THAT SOMETHING THAT YOU WERE STILL DISCUSSING? WHERE IS THAT SOMETHING THAT COMES UP WHEN WE APPROVE THE BUDGET? IT'S OUR RECOMMENDATION TO THEM AS A WAY TO ADDRESS START ADDRESSING THIS FUNDING SHORTFALL. OKAY. SO THAT'S SOMETHING TO LAY IT. AS YOU KNOW, THROUGHOUT THE YEARS WHEN COUNCILS APPROVE PAY FOR STAFF, SOMETIMES IT'S DELAYED AND IMPLEMENTED LATER IN THE YEAR TO ACHIEVE FUNDING NEEDS OR MATCH TO CASH FLOWS WITH THE PAYMENTS. THIS IS ONE OF THE THINGS THAT CAME UP WHEN WE WERE WHEN WE WERE TALKING WITH THEM YESTERDAY ABOUT THE WAY THAT THEY COULD ADDRESS THIS SHORTFALL. AND WE ALREADY HAVE A DISPARITY BETWEEN COMPARABLE CIVILIAN CITY STAFF AND THE PARK BOARD. CITY STAFF IS PAID LESS. SO THIS JUST MAKES THAT DELTA EVEN MORE IF THEY WERE TO REWARD IT. YOU KNOW, MARTY, I THINK THE RECOMMENDATION DOES SAVE MORE THAN HALF OF THE 4%. RIGHT. NEW NEW ISSUE. BUT I'M NOT CONVINCED. NOR HAVE WE HAD TIME TO TRY TO FIGURE OUT WHERE THAT 4% IS COMING FROM. BUT I'M NOT CONVINCED THAT'S THE RIGHT PLACE. I MEAN, I'LL BE HONEST WITH YOU. IF I OWNED THIS BUSINESS, I'D GIVE EVERY ONE OF THEM A BONUS FOR STAYING THROUGH THE LAST THREE YEARS. YEAH, I'M DEAD SERIOUS. I WOULD PAY TO STAY. YEAH. WHICH WE'VE ALL DONE AT SOME POINT IN OUR CAREER. PROBABLY. BUT I GET WHY WE HAVE IT. BUT I DON'T THINK. I DON'T THINK THAT'S WHERE THE SAVINGS SHOULD COME FROM. MY FIRST BLUSH AT LOOKING AT THIS. I THINK THAT'D BE A I THINK THAT'D BE KIND OF AN MAYBE EVEN A LAST RESORT THE WAY I'M THINKING RIGHT NOW. BUT IT CLEARLY IS A GOOD WAY TO FIND HALF OF IT QUICKLY. THE CITY DID INCREASE A LOT OF SALARIES LAST YEAR, AND WE'RE STILL BEHIND THEM. WE'RE STILL BEHIND AND WE DON'T HAVE. IT'S TRICKY BECAUSE WHEN YOU STUDY THAT AND I'M NOT ARGUING THAT HE'S NOT THAT. THAT'S CORRECT. BUT IT'S REALLY DIFFICULT TO THINK TO LOOK AT WHEN YOU CONSIDERED YOU HAVE A PENSION PARK OR DOESN'T HAVE A PENSION. THE CONTRIBUTION OF HEALTH BENEFITS IS DIFFERENT IN CERTAIN WAYS. IN SOME WAYS, THE CITY IS LESS, HAS LESS INVESTED OR EXCUSE ME, THEY THEY SO IT HAS TO PAY MORE THAN OUR ASSOCIATE DOES. SO IT'S REALLY DIFFICULT IN MY OPINION ANALYSIS. AND THEN YOU LITERALLY HAVE TO GO TO EACH INDIVIDUAL EMPLOYEE AND SAY OKAY, IS IT EMPLOYEE ONLY OR EMPLOYEE AND FAMILY? AND DID YOU LIKE THIS POLICY OR THAT POLICY? AND ARE YOU INVESTED IN THE 401 K TYPE PROGRAM? SO IT'S NOT SIMPLE IN MY MIND TO SAY THAT WE'RE HIGHER OR LOWER. I THINK IT'S YOU PROBABLY SPENT MORE TIME ON IT THAN I HAVE. BUT ANYWAY, I JUST KNOW DURING THE TRANSITION THAT'S BEEN A CHALLENGE. YEAH. OKAY. WE DON'T HAVE A SOLUTION. AND YOU'LL SEE THAT AS WE FURTHER OUR DISCUSSIONS WITH YOU AND WHAT OUR FINAL RECOMMENDATION IS TO COUNCIL ON THIS BUDGET, YOU'LL SEE HOW WE TALK ABOUT IT. YEAH. THESE WERE JUST ITEMS FOR CONSIDERATION. GOOD TO KNOW IMPORTANT TO KNOW ITEMS AS WE'RE DISCUSSING. SO WITH THE SERVICES REVERTING BACK TO THE CITY. SHORT TERM RENTALS AND HOT COLLECTIONS. THE COLLECTION OF HOT WILL BE WITH THE CITY AS OF OCTOBER 1ST. AND THE QUARTERLY TRANSFERS WILL OCCUR IN ONE DIRECTION ONLY, WHICH IS FROM THE CITY TO THE PARK BOARD. ONCE A QUARTER, STR REGISTRATIONS WILL BEGIN ON TEN ONE WITH THE CITY, AND THAT INCLUDES ALL DATA. CUSTOMER SERVICE AND FUNDING FOR STR REGULATION WILL RESIDE ON THE CITY SIDE. QUICK QUESTION. IS THE CALL CENTER READY TO GO LIVE? GOOD. CALL CENTER IS NOW READY TO GO LIVE. CALL CENTER IS LIVE. NOW WE'VE HAD A CALL CENTER, SO ONE NUMBER WILL BE TRANSITIONING THEIR STAFF TO US. OKAY. SO WITH THE CITY PARKS, THE CITY PARKS WILL TAKE OVER MANAGEMENT OF [03:15:02] SEAWOLF AND SEAWALL URBAN PARKS BEGINNING TEN ONE. SOME OF THOSE EMPLOYEES HAVE ALREADY STARTED WORKING FOR THE CITY. AS WE'RE DOING THIS TRANSITION PIECE. AND SEAWALL URBAN WILL BE CONTRACTING WITH THE PARK BOARD TO DO MUCH OF THAT WORK. OKAY. AND THEN WITH EMPLOYEES AND FUNDING, THE CITY WILL BE HIRING PARK BOARD EMPLOYEES TO CONTINUE THEIR JOB UNDER THE CITY'S DIRECTION. AND FUNDING RELATED TO THESE FUNCTIONS WILL BE REMOVED FROM THE PARK BOARD. BUDGET IS BEING REMOVED IS REFLECTED AS NOT IN THE PARK BOARD BUDGET. PAST AND CURRENT YEAR EXPERIENCE IS ALSO NOT REFLECTED IN THE BUDGET, AND THAT IS INFORMATION WE'VE REQUESTED FOR OUR KNOWLEDGE MOVING FORWARD. SO AS WE'RE ACCOUNTING FOR THE TRANSFERRING OF FUNCTIONS, AS I SAID, IT'S NOT IN THE BUDGET YOU'VE RECEIVED FROM THE PARK BOARD. WE'RE TRYING TO GET THE BEST UNDERSTANDING RELATED TO THAT, ESPECIALLY ANTICIPATING ANTICIPATED ENDING FUND BALANCES SPECIFICALLY RELATED TO DILLON ERA. WE ARE CONCERNED ABOUT THE DEFICIT THAT WE BELIEVE DILLON WILL HAVE AT YEAR END AT PARK BOARD. AND SO WE'RE IN CONTINUED DISCUSSIONS ABOUT HOW WE'RE GOING TO HANDLE THAT DEFICIT WHEN THE OPERATIONAL TRANSFER OF THAT ACTIVITY AND THAT PART COMES BACK TO THE CITY. BOTH THE PARKS AND THE COLLECTION ACTIVITIES HAVE BEEN INCLUDED IN THE CITY'S BUDGET THAT YOU'VE RECEIVED, TO THE EXTENT THAT THE INFORMATION, TO THE EXTENT THAT WE UNDERSTAND THE INFORMATION FOR WHAT WE HAVE AT THIS POINT THAT'S CAUSING THAT DEFICIT. SO MY UNDERSTANDING IS SOME OF IT MAY BE HISTORICAL. BACK TO IKE. THERE HAS BEEN SOME DISCUSSION IN THE PAST ABOUT THERE BEING A FEMA RECEIVABLE, I'M NOT ENTIRELY SURE THAT THAT'S EXACTLY WHAT IT IS. BASED ON SOME OF THE DISCUSSIONS WE HAD YESTERDAY. WE ARE GOING TO DO OUR BEST TO FIGURE IT OUT AND SEE HOW WE NEED TO HANDLE IT. IF THERE'S A FEMA RECEIVABLE, THEN THAT WOULD MAKE IT SUPER EASY, BECAUSE WHEN THE PARK BOARD GETS THE MONEY, THEN THEY CAN OFFSET THAT DEFICIT ON THEIR END. IF THERE'S NO FEMA RECEIVABLE, THEN IT'S PROBABLY GOING TO BE A MORE DIFFICULT CONVERSATION. BUT WE'RE GOING TO HAVE IT AT THE STAFF LEVEL AND KEEP COUNSEL ADVISED OF ANY INFORMATION WE GET. OKAY. SO BASED ON OUR INITIAL REVIEW RELATED TO EVERYTHING THEY'VE PROGRAMED ON HOT AND FUND BALANCES, OUR RECOMMENDATION WOULD BE THAT THE BUDGET IS APPROVED AS REQUESTED AND PRESENTED BY THE PARK THE FIRST TWO QUARTERS. THIS WOULD ALLOW PARK BOARD AND STAFF TO WORK TOGETHER TO NEGOTIATE ANY OUTSTANDING ITEMS, AND TO PRESENT AN AMENDMENT FOR THE SECOND HALF OF THE YEAR. NO LATER THAN, LET'S SAY, FEBRUARY. AND THAT'S JUST I WAS SPITBALLING IN THE MIDDLE OF THE NIGHT, BUT THAT WOULD GET US TO THE END OF MARCH, OBVIOUSLY, AND ALLOW FOR THE FUNDING OF THE SECOND HALF OF THE YEAR. IT WILL ALLOW US TO FIND A WORKABLE SOLUTION, BECAUSE WE'RE STILL WORKING ON IT FOR THAT $513,000 DEFICIT. SO THAT'S JUST GENERALLY THE RECOMMENDATIONS WE CAME AWAY WITH FROM OUR MEETING YESTERDAY. I WILL TELL YOU, THE BUDGET WE RECEIVED FROM THE PARK FOR THIS YEAR WAS FAR MORE TRANSPARENT. IT WAS EASIER FOR US TO WORK THROUGH IT. IT WAS PRESENTED IN A MANNER THAT WE'RE WE'RE WE'RE USED TO SEEING. THAT HAS BEEN A WORK IN PROGRESS OVER THE LAST FEW YEARS. BUT I'LL TELL YOU, IT HAS BEEN A FAR DIFFERENT I GUESS. YEAH, A FAR DIFFERENT EXPERIENCE IN WORKING WITH THE STAFF OVER THERE AS OF LATE. SO IT'S BEEN A GOOD PROCESS. THAT'S GOOD TO HEAR. VERY GOOD TO HEAR. YES, DAVID. OUTSIDE OF THE IDENTIFIED RISK, WHICH YOU SAW. YOU SAID THE $500,000 APPROVING A BUDGET. YOU KNOW, TWO QUARTERS AT A TIME. NOT OPTIMAL. BUT, YOU KNOW, I UNDERSTAND WHY YOU MIGHT MAKE THAT RECOMMENDATION. ARE THERE ANY OTHER FINANCIAL RISKS THAT YOU SEE JUST LOOKING AT THE PARK BOARD BUDGET RIGHT NOW, AS RELATED TO THE TRANSITION OF OPERATIONS AS RELATED TO THE TRANSITION, NOT NECESSARILY ON THE PARK BOARD SIDE? I WOULD SAY THERE'S OBVIOUSLY A LOT OF RISK ON THE CITY SIDE JUST BECAUSE WE'RE DOING A NEW THING FOR THE FIRST TIME, AND THERE'S A LOT OF MOVING PIECES. AND SO WE'RE TRYING TO PLAN FOR ALL THOSE RISKS. OBVIOUSLY WE'VE BEEN WORKING ALL SUMMER. WE'VE GOT THE CONTRACTS LINED OUT. THAT'S PART OF WHAT THE INTERLOCAL DISCUSSION WAS, IS CLARIFYING ROLES. WE ARE WORKING TO GET THE PEOPLE IN PLACE THAT CAN BE DOING THESE ACTIVITIES. HIT THE GROUND RUNNING OCTOBER 1ST. FINANCES JUGGLING A WHOLE LOT OF THINGS. AND WE ARE HOPING THAT IT'S GOING TO BE A SMOOTH TRANSITION ONCE WE GET ALL THE PEOPLE IN PLACE, BUT IT IS IN FEBRUARY THAT YOU HAVE BETTER CLARITY IN ORDER TO BRING THEM FORWARD TOGETHER. WELL, BY FEBRUARY, I THINK OUR WORK WITH THE PARK BOARD WILL ALLOW US TO COME UP WITH SOLUTIONS FOR THEIR BUDGET RELATED TO THE $513,000 THAT WE CAN PRESENT TO COUNCIL, THEY WILL PROBABLY HAVE LOTS OF RECOMMENDATIONS ON HOW THAT WOULD LOOK, AND IT MAY RESULT IN THE FUNDING NEEDS FROM THE CITY. [03:20:01] QUITE HONESTLY, I MEAN, I DON'T KNOW HOW WE GET THERE, BUT THIS IS A NUMBER THAT WE'VE GOT TO DEAL WITH. THAT'S WHAT I WAS LOOKING FOR. AND YEAH, AND THE FINANCIAL RISK FROM THE PARK BOARD'S PERSPECTIVE IS REALLY YOU CAN'T SAY IT'S LIMITED TO TWO, BUT RIGHT NOW WE'RE GOING TO FUND THEM BASED ON THE FORMULA, BASED ON WHAT THEY REQUESTED AT THE FULL AMOUNT THROUGH THE FIRST TWO QUARTERS WHILE WE WORKED ON. IT MAY NOT TAKE TWO QUARTERS. WE WANTED TO GIVE OURSELVES ENOUGH TIME TO DO THAT AND LET THEM GO OUT AND OPERATE. REMEMBER, A LOT OF THEIR EXPENSES ARE SEASONAL. YOU KNOW, THEY SPEND A LOT OF MONEY ADVERTISING AND OFF SEASONS SEASON AND A LOT OF MONEY OPERATIONALLY DURING THE SEASON. SO, YOU KNOW, IT'S NOT EVEN 25%, 25% AND SO ON. BUT, YOU KNOW, THE IMPORTANT THING FOR US IS AS THIS TRANSITION TAKES PLACE, THE CITY IS GOING TO HAVE TO WORK HAND IN HAND WITH THEM TO MAKE SURE THEIR CASH FLOWS ARE CONSISTENT WITH WHAT THEIR OPERATIONAL NEEDS ARE. ALSO GIVES US A COUPLE QUARTERS OF HISTORY WITH HOT TO SEE HOW THE HOT IS ACTUALLY COMING IN. OKAY. THANK YOU MARTY. THIS IS THE FIRST ONE THAT I'M NOT WILD ABOUT. I DON'T UNDERSTAND WHY WE CAN'T HAVE AN APPROVED BUDGET OCTOBER 1ST. I JUST DON'T LIKE IT. A MONTH OR 2 OR 3 OR A QUARTER OR TWO. I THINK IT REALLY. AND I HAVEN'T PLANNED A SPEECH. I DON'T HAVE GREAT INFORMATION ABOUT IT YET, BECAUSE, YOU KNOW, A LOT OF THIS IS BRAND NEW, BUT JUST THE IDEA THAT THINGS THAT WE'RE THINKING ABOUT TWO YEARS FROM NOW, WELL, CAN WE OR CAN'T WE DO THAT THINGS THAT WE DO, ESPECIALLY IN TOURISM DEVELOPMENT, A LOT OF THOSE KIND OF THINGS. NEED TO BE AGREED TO AND WELL IN ADVANCE. SO IN MY OPINION, SHORT TERM, NOT A LOT OF THOUGHT. YET MY OPINION IS IF I CAN FIND 513,000 TO DO THIS. GOOD LUCK. BUTTON THIS UP. YEAH, IF THERE'S MORE TO IT THAN I DON'T UNDERSTAND, JUST TELL ME WE DON'T HAVE A PROBLEM WITH THAT, MAYOR. YEAH, THAT MAKES SENSE TO ME. I MEAN, WE WERE TRYING. WE WE WANT TO HELP MARTY, SO WE JUST DIDN'T WANT TO SAY. MARTY. $513,000. BEST OF LUCK TO YOU. BUT WE'RE WILLING TO WORK WITH THEM. HOWEVER, IT WORKS, BECAUSE THIS 513,000 IS PROBABLY A ONE TIME THING. NEXT YEAR IN THE BUDGET AFTER THIS COMING YEAR. NO PLAN FOR NO PLAN FOR IT. YEAH, YOU'LL PLAN FOR IT. EXACTLY. SO SO THIS IS IT'S NOT A PROBLEM. YEAH, EXACTLY. AND I AND I UNDERSTAND TOO. IT'S A POSSIBILITY THE CITY WILL SHARE IN THAT IN SOME WAY. NOW WE'LL SEE. IT'S NOT. MY INTENT IS MY INTENT IS TO GO FIND $513,000. THAT'S IT. RIGHT. RIGHT. AND THEN IF I CAN GET THAT THROUGH OUR TRUSTEES. AND I FEEL I FEEL THAT WE'VE GOT THE TALENT TO MAKE GOOD DECISIONS THAT OUR TRUSTEES WILL SUPPORT. AND IT GETS YOU WHAT I THINK YOU NEED AND WANT. AND SO I WOULD RATHER THAN I'M JUST ASKING. I'M NOT ASKING FOR YOUR DIRECTION. I'M ASKING YOU TO UNDERSTAND THAT THAT'S REALLY WHAT I'D LIKE. AND I WILL COME BACK BEGGING IF I CAN'T GET IT DONE. AND I KNOW I UNDERSTAND HIM PERSONALLY. IF WE CAN COVER THAT 513 AND STAFF IS COMFORTABLE WITH THAT, WE'RE READY TO GO. I'LL GIVE HIM THE FOUR. I UNDERSTAND IT'S LESS THAN 1%. IT'S NOT IMMATERIAL, BUT IT'S LESS THAN 1%. I HAVE FAITH YOU'LL FIGURE. YEAH. TO MR. MILES'S POINT, YOU KNOW, APPROVING A PARTIAL BUDGET WHEN YOU HAVE OBLIGATIONS FOR YEAR TWO, A YEAR OR TWO IN ADVANCE. IT REALLY KIND OF IMPACTS YOUR ABILITY TO PLAN. AND THEN, I MEAN, EVEN IF, WORST CASE, YOU WERE TO APPROVE A BUDGET. NOPE. NOPE. I'M GOING TO RETRACT THAT. NEVER MIND. I WOULD MUCH RATHER HAVE Y'ALL COME TO THE TABLE WITH ADDRESSING THAT. 513. OKAY. THANK YOU. THANKS FOR ALLOWING ME TO COME BACK FOR A SECOND. ALL RIGHT. ANY QUESTIONS FOR SHEILA ON THE BUDGET FOR PARK BOARD? THIS WILL BE. CAN'T STRESS YOU ENOUGH HOW EASY IT IS AND HOW NICE IT IS WORKING WITH MARTY AND HIS TEAM. IT'S BEEN IT'S BEEN. YEAH, IT'S IT'S IT'S BEEN A BREATH OF FRESH AIR. VERY MUCH SO. WE ARE. AUGUST 28TH. THIS WILL BE ON OUR AGENDA. COUNCIL FOR APPROVAL. SHEILA, THANK YOU VERY MUCH. LET'S MOVE NOW. WHAT I'D LIKE TO DO, JANELLE, [3.D Presentation of the City of Galveston’s FY 2025-2026 Proposed Budgets, Tax Rate and Capital Improvement Projects ( C Ludanyi - 1 hour )] IS READ ITEM THREE D, THREE D, AND THREE F TOGETHER. WE'RE GOING TO TAKE THOSE SEPARATELY, BUT I WANT THOSE READ BECAUSE WHEN WE TALK ABOUT THE BUDGET THERE MAY BE SOME, SOME THINGS THAT INVOLVE THESE BONDS. AND SO I WANT TO BE ABLE TO INCORPORATE THAT IN OUR DISCUSSION ITEM 3D PRESENTATION OF THE CITY OF GALVESTON'S FY 25 2526 PROPOSED BUDGETS, TAX RATE AND CAPITAL IMPROVEMENT PROJECT BUDGET DISCUSSIONS ONE. GARAGE AND INFORMATION TECHNOLOGY, INTERNAL SERVICE FUNDS AND RESERVE FUNDS TWO. PARKS DEPARTMENT MAINTENANCE OF CITY OWNED AND NON CITY OWNED ASSETS. THREE. DISCUSSION OF FIRE STATION NUMBER TWO BOND AND THREE F DISCUSSION OF STREET REPAIR BOND. VERY GOOD. SHEILA. THAT'S A WHOLE LOT. YES, IT BUGGED ME LAST TIME AND I DIDN'T SAY [03:25:04] ANYTHING. THAT'S NOT 61ST STREET. ON SECOND, 53RD. SO THAT'S 53. 53 IS A SHORT ONE. 59TH IS THE SHORT ONE. I USE THE LABEL AT THE PHOTOGRAPHER. I KNOW, I KNOW, IF YOU LOOK UP I KNOW YOU GAVE HIM CREDIT TOO, AND I JUST MAYBE SOMEONE TOLD A PHOTOGRAPHER THAT'S NINE, NINE, SIX PERSON. A STORM CAME AND BLEW THE PIER AWAY. I KNOW IT JUST GAVE CREDIT WHERE I FOUND THE MUSIC AND COPYRIGHTED PHOTOS, AND WE GOT TO GIVE THEM THEIR CREDIT. HEY, I EMAILED THE GUY AND I WAS LIKE, HEY, I'M USING IT FOR GALVESTON'S BUDGET PRESENTATION. NEVER HEARD FROM HIM. SO I'LL SEND YOU A PHOTO I TOOK AND THEN YOU WON'T HAVE. OKAY. PERFECT. SO LET'S START WITH THE CALENDAR AND THE TIMELINE SO THAT WE ARE ALL UP TO SPEED ON WHERE WE'RE AT AND WHERE WE'RE GOING. COUNCIL RECEIVED THEIR BUDGETS ON FRIDAY, AND I DON'T HAVE A HANDOUT ON THIS DO YOU. OH I DO. THANK YOU. I'M LOOKING AT YOUR BUDGET. THIS. HAND THIS OUT SO THAT WE GET TO TALKING ABOUT THE BONDS. YOU'LL HAVE THIS IN FRONT OF YOU AS WELL. THAT'S THE BOND MATERIAL THERE. OKAY. SO WE HAVE MORE OF THESE. OKAY. SO COUNCIL RECEIVED THEIR DRAFT, THEIR PROPOSED BUDGETS ON AUGUST 8TH. IT WAS ALSO THE SAME DAY THAT WE GOT A PHONE CALL FROM GALVESTON COUNTY APPRAISAL DISTRICT ADVISING US THAT THEY HAD THEY WERE IN THE PROCESS OF APPROVING A SUPPLEMENT, ONE WHICH THE TAX ROLL IS CERTIFIED IN JULY, BUT THROUGHOUT THE YEAR, ON A MONTHLY BASIS, USUALLY WE RECEIVE A SUPPLEMENT WHERE THEY UPDATE EVERYTHING THAT HAS GONE THROUGH THE APPRAISAL REVIEW BOARD AND GIVEN US A NEW SNAPSHOT OF THE MOST RECENT CERTIFIED NUMBERS. AND THEN BY THE END OF THE YEAR, THEY'VE CERTIFIED THE WHOLE PIECE. BUT SO IT IS ABSOLUTELY A NORMAL ACTIVITY TO RECEIVE MONTHLY QUARTERLY UPDATES FROM GALVESTON COUNTY APPRAISAL DISTRICT. IT IS VERY UNUSUAL TO RECEIVE A SUPPLEMENT TWO WEEKS AFTER YOU RECEIVE THE CERTIFIED ROLL, AND THE CALL WAS MADE TO US AND EVERYTHING WAS SUBMITTED TO CHERYL JOHNSON BECAUSE THEY HAD A TAXPAYER FROM THE PORT WHO HAS A NEW AGENT, AND THE NEW AGENT HAS SUBMITTED A REQUEST TO THE APPRAISAL REVIEW BOARD TO BE REVIEWED. THEY ARE CURRENTLY PARTIALLY EXEMPT AND THEY ARE THE SECOND HIGHEST TAXPAYER IN THE CITY OF GALVESTON, AND THEY ARE ASKING TO BE 100% EXEMPT DUE TO INTERSTATE COMMERCE BEING THEIR EXEMPTION. BUT THEY'RE THE VALUE ON THE CERTIFIED ROLL UNTIL NOW HAS BEEN $102 MILLION, WHICH IS A VERY BIG NUMBER. AND WE HAD THE OPTION ABOUT WHETHER WE WERE GOING TO MOVE FORWARD WITH OUR CALCULATIONS AS THEY WERE CERTIFIED ORIGINALLY OR ADJUST WITH THIS NEW INFORMATION. AND IT'S SIGNIFICANT ENOUGH THAT WE FELT LIKE WE NEEDED TO ADJUST IN ORDER TO PROVIDE THE CITY WITH THE BEST INFORMATION MOVING FORWARD. AND SO CHERYL JOHNSON WORKED WITH US AND SHE RECALCULATED FOR US. THIS IMPACTED THE NAVIGATION DISTRICT, THE SCHOOL DISTRICT. SHE DID RECAP FOR EVERYONE. SO IT'S SIGNIFICANT, RIGHT? BUT THAT MEANT WE ALSO HAD A LOT OF THINGS CHANGING BETWEEN LAST FRIDAY AND TODAY. LITTLE CHANGES FROM WHAT YOU HAVE HERE. YES. SO TODAY WE'RE DISCUSSING ALL OF THESE THINGS, AND WE CAN I CAN ANSWER MORE QUESTIONS ABOUT ALL OF THIS. ON THE 28TH, WE PLAN FOR COUNCIL TO ADOPT THE BUDGET AND THE CIP AND POTENTIALLY A PROPOSED TAX RATE. NOT THE TAX RATE THAT WILL HAPPEN IN SEPTEMBER, BUT TO RATIFY THE TAX RATE THAT'S RELATED TO THE BUDGET AND THE TAX RATE HEARING AND THE NOTICE NEEDS TO BE APPROVED AS WELL. SO WE ARE WANTING ALL THAT TO HAPPEN IN TWO WEEKS. AND THEN ON SEPTEMBER 18TH, WE'RE HOPING TO HAVE THE PUBLIC HEARING AND THE VOTE ON THE TAX RATE. THERE WILL BE A PUBLIC HEARING ON THE BUDGET ON THE 28TH AS WELL. SO AS A REFRESHER, THE NO NEW REVENUE PROVIDES THE SAME REVENUE FROM THE SAME [03:30:02] PROPERTIES YEAR OVER YEAR, AND THE VOTER APPROVAL RATE PROVIDES FUNDING FOR THE ANNUAL DEBT OBLIGATION AND AN INCREASE OF UP TO 3.5% ON TOP OF THE CURRENT YEAR MAINTENANCE AND OPERATION REVENUE. THE DEADLINE FOR CERTIFICATION WAS JULY 25TH, AND WE ARE PRESENTING THE OFFICIAL CERTIFIED ROLE TO COUNCIL TODAY. AS REQUIRED BY STATE LAW AS WELL. DO YOU HAVE A QUESTION THAT THE $102 MILLION VALUATION, SECOND LARGEST PROPERTY TAX PAYER IN. WAS THAT A NEW PROGRAM THAT WAS INSTITUTED SOMETHING OR WAS THAT JUST THEY DIDN'T TAKE ADVANTAGE OF IT WHEN THEY COULD HAVE UNTIL THIS YEAR? SO WHAT I'VE BEEN LED TO BELIEVE IS THAT BECAUSE THEY'RE PAYING SOMEONE DIFFERENT TO BE, THEY'RE BASICALLY THE LAWYER THAT'S HANDLING THEIR CASE. THEY'VE BEEN ADVISED TO APPROACH IT DIFFERENTLY. AND SO THEY CHANGED AGENTS. AND THEIR AGENTS APPROACH IS YOU CAN BE 100% TAX EXEMPT BECAUSE OF YOUR INTERSTATE COMMERCE OF YOUR PERSONAL PROPERTY. THIS IS NOT UNPRECEDENTED. WHEN I WORKED AT THE COUNTY, WE HAD ONE OF THE LARGE REFINERIES CHANGE THE APPRAISAL METHOD. THEY BROUGHT OUT A NEW ATTORNEY. THEY CAME ABOUT WITH A NEW APPRAISAL MEANT THAT IT WAS ACCEPTED. AND THAT ONE ACTUALLY, I THINK, WENT TO COURT. SO THIS IS NOT UNPRECEDENTED THAT THIS HAS OCCURRED. I DON'T NECESSARILY AGREE WITH IT, BUT IT'S NOT UNPRECEDENTED. AND SO ESSENTIALLY WHAT THAT MEANS IS THAT $102 MILLION THEN IS GOING TO BECOME UNDER PROTEST. SO YOU'RE TAKING A MORE CONSERVATIVE APPROACH BY WITH. YEAH. SO THE NEXT SLIDE. OKAY. ALL RIGHT. OKAY OKAY. SO THIS IS WHAT HAPPENED. YOU'VE GOT YOUR 725 ROLLS. AND THEN YOU HAVE YOUR EIGHT EIGHT SUPPLEMENTAL ONE. OKAY. YOU'LL SEE THAT THE UNDER UNDER THE VALUE CHANGE SECTION. THE UNDER PROTEST PORTION. OKAY. THAT'S THE PART OF THE ROLL THAT'S NOT CERTIFIED. CHANGES FROM $585 MILLION TO 464 MILLION. AND ESSENTIALLY WHAT THE COUNTY APPRAISAL DISTRICT HAS DONE IS THEY'VE SAID HEY THIS PORTION IS UNDER PROTEST. BUT WE BELIEVE THE END RESULT IS GOING TO BE $120 MILLION LESS THAN WHAT WE ORIGINALLY TOLD YOU. OKAY. ADDITIONALLY, WITH EACH SUPPLEMENT, ANY OTHER CHANGES THAT HAVE BEEN MADE ARE INCLUDED SO THAT THERE WERE OTHER CHANGES, THAT NEW IMPROVEMENTS WENT DOWN A LITTLE BIT BY 496,000. THE RESULTING TAXABLE VALUE WENT DOWN $116.3 MILLION TO $11.1 BILLION, ABOUT A 1% DECREASE. OKAY. THE RATE CHANGES YOU'LL SEE UNDER THE 725 COLUMN, THE NO NEW REVENUE WAS 0.404507 AT THE NO NEW REVENUE RATE. WE WERE THE BUDGET WAS BASED ON PROPOSING A FLAT RATE YEAR OVER YEAR. SO WE WERE GOING TO PROPOSE TO HOLD THE RATE STEADY AT THE 40885 AS WE'VE HAD IT THE LAST TWO YEARS. WHEN WE RECALCULATED UNDER SUPPLEMENT ONE, IT BROUGHT THE NO NEW REVENUE RATE DOWN TO THE 408687, WHICH AS YOU'LL SEE, IS 418 OR LESS THAN WHAT OUR PROPOSED RATE WAS GOING TO BE. ON THAT FAR RIGHT SIDE, YOU'LL SEE $18,169 IS ALL WE WOULD HAVE GOTTEN HOLDING AT THAT FLAT RATE. SO AT THAT POINT, WE MADE A STRATEGIC DECISION. THERE'S NO POINT IN GOING ABOVE NO NEW REVENUE FOR $18,000, AND WE NEEDED TO ADJUST THE BUDGET TO MATCH THIS NEW NO NEW REVENUE RATE. IN CASE ANYONE'S INTERESTED, IF YOU WANTED TO MATCH THE REVENUE THAT WE HAD ORIGINALLY PLANNED ON, THE RATE WOULD NEED TO BE THE 4125. OKAY, THE 0.4125. THAT WOULD GET US THE SAME REVENUE AS THE 40885 WOULD HAVE AT THE END OF JULY. OKAY. YES. SAY THAT ONE MORE TIME. SO OUR THE ORIGINAL PLAN AT THE FLAT RATE, IN ORDER TO MATCH THE SAME AMOUNT OF REVENUE, THE TAX RATE WOULD NEED TO BE THE 4125. OKAY. SO THE REVENUE CHANGES THAT RESULTED FROM THIS PIVOT. OKAY. THE GENERAL FUND MAINTENANCE AND OPERATIONS PORTION OF THE REVENUE WAS AT PROJECTED AT 39 POINT ALMOST $7 MILLION. IT'S GOING TO GO DOWN BY 400, ALMOST $50,000 TO 39.2 MILLION IN PROPERTY TAX REVENUE. THE LIBRARY RATE AND THE DEBT RATE CHANGED JUST A TINY BIT JUST BECAUSE OF THE WAY THE CALCULATION WORKS. BUT OBVIOUSLY THE BIG HIT IS IN THE GENERAL FUND. SHEILA, THE WHAT'S THE DIFFERENCE? MONEY WISE, WE TALKED ABOUT FROM THE 0.4125 DOWN TO THE 0.408687. IT IS ABOUT THAT $450,000. SO WE'RE SO WE'RE UNDER THE GENERAL FUND MAINTENANCE AND OPERATION RATE. OKAY. YOU'RE SEEING THAT WE DROP BY $449,340 IN REVENUE. [03:35:03] ON THE TOP OF THE DIFFERENCE. THAT IS WE. IF WE TOOK IT UP TO THE 0.4125, YOU WOULD MAKE UP THAT GAP. DOES THAT MAKE SENSE? IT DOES. ALL THREE OF THOSE COLUMNS? YES. YEAH. IT WOULD. YES. BECAUSE IT AUTOMATICALLY. YES. YEAH. AT THE 4.125. YES. OKAY. SO WE SAW THIS BEFORE. JUST WANTED TO CLEARLY SHOW YOU THAT THE PROPERTY TAX RATE THAT WE DISCUSSED AT THE END OF JULY, THE NO NEW REVENUE RATE LOOKS BASICALLY IDENTICAL TO IT. OKAY. WE'RE STILL IN THE MIDDLE OF THE PACK BASED ON LAST YEAR'S TAX RATES THROUGHOUT GALVESTON COUNTY. SO PART OF THE DISCUSSION THAT WE'VE HAD TO HAVE IS HOW DO WE GET THERE? RIGHT. SO IN FISCAL YEAR 25 SOME OF THE ADVANTAGES WE HAD ON THE REVENUE SIDE WERE THE ONE TIME LAND SALE AT THE AIRPORT, WHICH IS ABSOLUTELY A ONE TIME THING. THE CITY DOESN'T HAVE ADDITIONAL LAND TO SELL AND GAINS VERSUS THE BUDGET AND BOTH INTEREST EARNINGS AND SALES TAX. OKAY. SO IN THAT FIRST COLUMN, WHEN YOU COME DOWN TO REVENUE OVER EXPENDITURE, YOU'RE GOING TO SEE THAT WE GAINED TWO POINT ALMOST $8 MILLION BASED ON THE ONE TIME LAND SALE PREDOMINANTLY, AND THEN SOME GAINS IN INTEREST IN SALES TAX. WHAT THAT MEANS IS WE HAVE FINISHING FISCAL YEAR 25. WE'RE PROJECTING 114 DAYS OF FUND BALANCE AT YEAR END. AND WITH THAT 25,000,025.4 MILLION IN ENDING FUND BALANCE, THAT PUTS US JUST SHY OF THAT 120 DAYS. OKAY. WHEN THAT FUND BALANCE CARRIES FORWARD TO THE BEGINNING OF FISCAL YEAR 26, WE HAVE AN ANTICIPATED REVENUE AFTER THIS PROPERTY TAX CHANGE. SO THESE NUMBERS ARE NOT GOING TO MATCH EXACTLY WHAT'S IN THE BUDGET BOOK THAT YOU RECEIVED. WE'RE ANTICIPATING AT THE NO NEW REVENUE RATE 84.3 MILLION, LET'S SAY. 84. TWO. 62. THREE. 30. THIS INCLUDES THE INCREASE IN ADMINISTRATIVE FEES, SUCH AS THE HIGH OF THIS PAGE ANYWHERE IN YOUR IN HERE INSTALLATION. YEAH, IT'S A GOOD ONE. WE SKIPPED THE PAGES. WET CUT ON THE SLIDES. WE SKIPPED THE SLIDES. NOW LET'S SKIP TO SLIDE THE BASED ON THE PAGES HERE. THIS IS THE ONE RIGHT? WELL THAT'S THE ONE. THERE WAS ONE BEFORE THE IN PROPERTY. OH YEAH. I KIND OF YEAH IN THE MIDDLE, BUT I KIND OF I KIND OF FLEW BY THAT ONE. OH BECAUSE IT DIDN'T DO NOTHING CHANGED. NOTHING REALLY CHANGED. JUST TO SHOW YOU THAT THE NO NEW REVENUE IS VERY SIMILAR TO WHAT WE WERE IS THE SAME IS WHAT WE'RE WORKING. SO ON OUR REVENUE, WHAT WHAT WAS SORRY WHAT WAS THE PROPOSED RATE? IT WAS BASICALLY THE SAME RATE. IT'S FLAT. WE HELD IT FLAT YEAR OVER YEAR, BUT NOW FLAT IS 1000 LESS. YEAH. AND NOW FLAT IS BASICALLY NO NEW REVENUE. SO THEY'RE THE SAME THING. SAME NUMBER. YEAH. BUT IF WE IF WE WANTED TO HAVE THE SAME REVENUE THAT WE HAVE LAST YEAR BASED UPON THIS CHANGE THAT HAS JUST COME UP, IT WOULD BE 0.41. SO. YEAH. OR WE COULD JUST DECREASE. SO IN ORDER TO ONCE WE HAD THAT $450,000 DECREASE ON THE REVENUE SIDE, WE LOOKED AT, YOU KNOW WHAT OUR OPTIONS WERE. RIGHT. SO TO GET TO THE 84.3 MILLION AFTER THAT MONEY HAS BEEN TAKEN ASIDE, YOU KNOW THAT THERE'S THE ADMINISTRATIVE FEES THAT INCREASE THIS YEAR. THOSE ARE GOING TO CONTINUE INTO THE FUTURE, BUT THEY'RE EXPECTED TO REMAIN RELATIVELY FLAT. OVERHEAD COSTS ARE GOING TO THEY'VE HISTORICALLY BEEN AROUND 4%. WE DON'T ANTICIPATE THAT CHANGING. AS WE KNOW, ONE OF THE INCREASES IN THIS YEAR'S BUDGET IS RELATED TO PARKING AND CRUISE PASSENGER FEES. THEY ARE RELATIVELY FLAT GOING INTO THE FUTURE AS WELL, RIGHT? SO ONCE THE PORT FULLY EXPANDS, THERE'S NOT IT'S NOT A GROWTH AREA. IT'S A FAIRLY CONSISTENT REVENUE STREAM. ARE YOU CONSIDERING THE NEW CRUISE SHIP TUNNEL THAT'S IN HERE? SO, GENERAL, BOTH. I'M SORRY. BOTH THE PARKING AND THE TURNS ARE IN HERE. OKAY, SO ON THE EXPENDITURE SIDE, WE'VE TALKED ABOUT THE BIG ITEMS THAT ARE PLAYING A ROLE IN OUR EXPENDITURE INCREASES THIS YEAR. THE POLICE AND FIRE CBA'S THE 20% INCREASE FOR EMS ANIMAL CONTROL AND THE 10% INCREASE IN HEALTH INSURANCE THAT'S BEING MITIGATED BY PLAN CHANGES. SO THERE YOU KNOW, THERE'S GOING TO BE IMPACT ON THE EMPLOYEES RELATED TO THOSE CHANGES. YOU'RE GOING TO YOU'RE GOING TO GET RID OF THAT 10% INCREASE BY MITIGATING. NO, IT WOULD HAVE BEEN A 20% INCREASE. AND WE ARE MITIGATING 10% OF THAT SO THAT THERE'S ONLY A TEN. [03:40:01] BASICALLY, WE MET WITH THE INSURANCE COMMITTEE AND WE SAID, WE'LL MEET YOU HALFWAY. WE'LL FIGURE OUT OUR 10% IF THE PLAN AND THE COMMITTEE WILL WORK THROUGH THE PLAN AMENDMENTS TO SEE WHAT BENEFITS AND THINGS THEY WANT TO CHANGE IN ORDER TO GET THEIR 10% SAVINGS. SO WHAT WE'VE DONE IS BASED ON FEEDBACK WE'VE RECEIVED FROM COUNCIL AND MANY OF THE DISCUSSIONS THAT WERE HAD LAST TIME, THAT ADDITIONAL $450,000 THAT WE'VE LOST. WE'VE LOOKED TO BOTH THE GARAGE AND THE CENTRAL SERVICES FUND BALANCES TO HELP TRUE UP SOME OF THOSE COSTS IN ALL THE FUNDS. AND SO THAT IS HOW WE GET TO A BALANCED BUDGET IS ON ONE TIME TRUE UP FROM THOSE FUND BALANCES. ESSENTIALLY WE'RE USING FUND BALANCE TO. AND WHAT WE DID WAS IS THAT BECAUSE THAT'S THAT'S THAT'S RISKY DOING THAT. BUT IN MY MIND ASKING WELL, IN MY MIND WE LOGICALLY WENT THROUGH IT. AND I WANT TO THANK COUNCIL MEMBERS ROB BEAU RAWLINS AND PORRETTO FOR BRINGING THIS UP. INSTEAD OF CARRYING FUND BALANCE IN THOSE FUNDS, WHAT WE'RE GOING TO DO IS, IS WE'RE GOING TO HAVE A STATED BUDGETED RESERVE IN THOSE FUNDS AND IT'S CAPPED. IT WOULD BE COMPLETELY RECKLESS TO NOT HAVE ANYTHING IN THERE, BECAUSE JUST THIS LAST YEAR ALONE, WE HAD TO REBUILD OUR COMPLETELY, REBUILD OUR TOWER TRUCK, AND THAT WAS BUDGETED. WE WOULD HAVE NOT BEEN ABLE TO DO THAT. THAT WOULD HAVE COME STRAIGHT OUT OF YOUR 120 DAYS, OR IN THIS CASE, 114 DAY RESERVE THAT WE HAD. WE DON'T WANT THAT TO HAPPEN. SO WHAT I'VE DONE IS, IS WE'VE GONE IN AND WE'VE LOOKED AND WE'VE TRIED TO DECIDE WHAT IS A REASONABLE AMOUNT TO HAVE FOR UNFORESEEN CRAZINESS THAT YOU DON'T BUDGET FOR A NEW CHILLER EVERY YEAR. YOU DON'T BUDGET TO REBUILD THE TOWER EVERY YEAR, BUT YOU DO HAVE A SMALL AMOUNT. IT'S ALMOST LIKE YOU DO WITH INSURANCE. SO WE'VE REDUCED THOSE AMOUNTS DOWN AND WE'VE GONE BACK ACROSS ALL FUNDS, ALL DEPARTMENTS, AND REDUCED THE CONTRIBUTION BY THAT SAME AMOUNT. AND THERE'S SOME RISK WITH THAT. AND I'LL TOUCH ON THAT WHEN SHEILA IS DONE WITH HER WITH HER PRESENTATION. BUT WE FELT, AT LEAST IN MY MIND. I COULD REASON I COULD GET THERE. YOU KNOW, UNFORTUNATELY, YOU KNOW, YOU GUYS GOT A GOOD OPPORTUNITY TO LOOK AT A FUND BALANCE. THAT WAS. THEY WERE UP IN THOSE FUNDS THIS YEAR. IT'S NOT ALWAYS UP THAT MUCH. SO IN FUTURE BUDGET YEARS, IF WE DROP BELOW, IF WE HAVE A BAD YEAR AND WE SPEND THAT RESERVE OR SPEND PART OF THAT RESERVE AND WE DON'T HAVE YOU MAY HAVE TO BUDGET THE MONTHLY FEES MAY HAVE TO GO UP TO BECAUSE THAT'S GOING TO BE PART OF YOUR OPERATING EXPENSE IN THOSE FUNDS. BUT FOR NOW WE'VE GOT IT BALANCED, BUT I WILL. SHEILA IS EXACTLY RIGHT. THIS IS AT LEAST AS FAR AS WE CAN SEE. THIS IS A ONE TIME INFUSION. I THINK WE CAN MANAGE THROUGH IT, BUT IT'S JUST SOMETHING WE NEED TO CAUTION YOU ON THAT WHEN YOU DO THESE THINGS. IT'S MY JOB TO TELL YOU THE UPS AND DOWNS. THIS COULD BE A DOWN. THERE'S GOING TO BE A IN MY OPINION, THIS IS A RISKY MOVE FOR THIS CITY. AND I'M GOING TO EXPAND ON THAT COMING UP HERE SHORTLY. GO AHEAD. WELL, I MEAN, WE'RE WE'RE NOT I MEAN, WE'RE WE'RE WE'RE KIND OF UNIQUE. AND AS FAR AS BEING AN ISLAND AND HAVING UNFORESEEN, UNKNOWN CIRCUMSTANCES, BUT WE'RE NOT THAT UNIQUE. I MEAN, WE HAVE THERE'S PLENTY OF MUNICIPALITIES ACROSS THE BOARD THAT, YOU KNOW, AVERAGE OF 5 TO 10% RESERVE NOT, YOU KNOW, 100% RESERVE. SO DFO BEST PRACTICES IS 90 DAYS AND 120 DAYS FOR ANY COMMUNITIES THAT HIRE AT A HIGHER RISK. SO COASTAL COMMUNITIES, COMMUNITIES AND EARTHQUAKE AREAS, COMMUNITIES LIKE. BUT I THINK I THINK BOTH REFERRING TO THE RESERVES IN THESE SPECIFIC REQUIREMENTS, YOU KNOW, RESERVES, THOSE ARE THE REASON THOSE RESERVES ARE A LITTLE BIT MORE ROBUST IS THEY'RE HIGHLY VOLATILE AREAS BECAUSE THINGS BEYOND OUR CONTROL, IF GAS PRICES SHOOT UP. WE CAN'T GROUND OUR POLICE CARS. WE CAN'T GROUND THE FIRE TRUCKS. WE CAN'T GROUND OUR OUR EQUIPMENT. WE'VE GOT TO DO OUR JOB. SO WE MAY WE NEED TO MAINTAIN SOME I DON'T DISAGREE THAT WE MAY HAVE HAD TOO MUCH IN THERE, BUT I ALSO KNOW FROM HISTORY THAT THAT FUND BALANCE WILL DISAPPEAR AS QUICKLY AS IT APPEARED. SO WE'RE GOING TO SEE THIS IS THIS IS THE FIRST TIME GO OF IT. WE'RE GOING TO TRY IT. WE'RE GOING TO TRY TO MANAGE IT. WELL FROM WHAT I UNDERSTAND THOUGH THAT THAT, YOU KNOW, THAT'S THAT'S TRUCK BY TRUCK. YOU KNOW WHAT WHAT WHAT'S IN THAT TANK MIGHT BE MORE THAN WHAT YOU GET NEXT WEEK AND VICE VERSA. YOU KNOW, IT'S NOT A 12 MONTH. IT'S NOT A 12 MONTH RISK THAT WE'RE TAKING. YOU KNOW, WE WE CAN SEE TRENDS AND, AND, AND FUEL PRICING FAIRLY. I MEAN, ENTIRE WORLD SEES IT EVERY SECOND OF THE DAY CHANGING. SO IT'S NOT LIKE GOING TO BE A SURPRISE. IT'S NOT GOING TO BE A SURPRISE. WHAT WOULD BE A SURPRISE AS WHERE WE HAVE TO GET THE MONEY FROM IF IT SHOOTS WELL AND WE HAVE BUDGET, YOU KNOW, WE POVERTY PROPERTY FACTORING BUDGET AMENDMENTS EVERY SINGLE CITY COUNCIL MEETING OF SOME SORT. YEAH, NO, WE'LL FIGURE IT OUT. I'M NOT SAYING I'M NOT. I JUST IT'S MY JOB TO. I HAVE TO TELL YOU THE UPS AND THE DOWNS AND THAT'S, YOU KNOW, WHENEVER, WHENEVER THE CITY TAKES ANY TYPE OF STEPS OUT OF ITS NORMAL COMFORT [03:45:02] ZONE AND THERE'S ANY, ANY ASSUMED RISK, I JUST WANT TO MAKE SURE YOU GUYS KNOW ABOUT IT. ALEX. AND THEN MARIE, SINCE WE'RE JUMPING INTO IT. SO I ASKED GLENN SPECIFICALLY ABOUT INTER INTER SERVICE INTERNAL SERVICE FUNDS. AND ACCORDING TO THE. GATSBY, THERE IS A BREAK. IT NEEDS TO BE A BREAK EVEN POINT OVER TIME FOR INTERNAL SERVICE FUNDS. SO OVER THE LAST TEN YEARS, LOOKING AT ALL THE BUDGETS AND FUND BALANCE AND GOING THROUGH SOME OF THE AQUIFERS, THERE'S BEEN THE BREAK EVEN POINT HAS LOOKED LIKE $1 MILLION OVER TIME, THAT'S BEEN KIND OF THE BREAK EVEN POINT. YOU COULD CALL IT A RESERVE FUND BALANCE IN CASH. TO ME, LOOKING AT AUSTIN, DALLAS, EL PASO, THEY HOLD ZERO CASH IN FUND BALANCES FOR GARAGES FOR THOSE INTERNAL SERVICE FUNDS IN THE BUDGET. WE ALREADY SEE FROM THE GARAGE ON PAGE. WHAT'S THE GARAGE? THERE'S THE ACTUALS ESTIMATED ARE 1.7. AND WE BUDGETED 2.2 FOR FUEL. SO JUST KIND OF RIGHT THERE WE HAVE YOU KNOW IF WE TRIED IT UP AND I DON'T KNOW IF WE SHOULD SCREW IT UP QUARTERLY BY ANNUALLY OR AT THE END OF THE YEAR IF WE TRIED THAT UP AND WE COULD SEND THE MONEY BACK TO THE DEPARTMENTS THAT WOULD HELP ALLEVIATE AND THEN MOVING FORWARD. THAT'S JUST FOR THE END OF FISCAL YEAR 25. A TRUE UP THAT WOULD BE FUND BALANCE, THAT WOULD CARRY OVER OR GO INTO FUND BALANCE FOR CASH RESERVES. SO THAT'S ESSENTIALLY WHAT WE'VE DONE TO BALANCE THE BUDGET. OKAY. IN THE GARAGE SPECIFICALLY, THE FUND BALANCE IS RIGHT AROUND $1 MILLION. AND OF THAT 400,000 IS INVENTORY. SO IT'S ITEMS PURCHASED THAT ARE SITTING ON THE SHELF WAITING TO BE USED. AND SO THAT LEAVES ABOUT 600,000 CASH AND WE ARE TAKING HALF OF IT. SO THE REBATE OR THE TRUE UP THAT'S GOING TO ALL THE FUNDS NOT JUST GENERAL FUND. RIGHT. ANYONE WHO'S PAID IN IS GETTING THEIR PORTION BACK IS $300,000. THAT'S BEING SPLIT OUT. THAT WILL BRING $144,000 OF REVENUE, OR I SHOULD SAY THAT WILL DECREASE EXPENDITURES IN THE GENERAL FUND RELATED TO GARAGE BY $144,000. OKAY, SO THAT'S THE APPROACH WE'VE TAKEN. ON THE CENTRAL SERVICES SIDE, THE FUND BALANCE IS PROJECTED TO BE ABOUT 2.2 MILLION. AS WE'VE DISCUSSED, THAT INCLUDES, THOUGH NOT JUST IT. IT INCLUDES FACILITIES AS WELL. AND SO WHAT WE'VE DONE THERE IS WE'VE TAKEN BECAUSE IT'S NOT JUST IT WE'VE LEFT FUNDING FUND BALANCE IN THERE FOR, AS BRIAN MENTIONED, CHILLERS, THAT SORT OF THING. ANY INCIDENTAL THAT MAY COME UP AS WELL AS WE HAVE. OBVIOUSLY WE KNOW A LOT OF IT PROJECTS GOING ON RIGHT NOW. WE'VE GOT ERP. WE'VE GOT HARDWARE SWITCHES AND NEXT YEAR WE'RE DOING. RADIOS. WE'RE DOING RADIO. WHAT WAS THE OTHER ONE? OH WELL. SO SOFTWARE, WE'VE GOT RMS, WE'VE GOT A SLA IN ADDITION TO THERE'S SO MANY IT PROJECTS, WE HAVE DISCOMFORT WITH NOT HAVING SOME FUND BALANCE. AND SO WE'RE TAKING THAT DOWN BY 500,000 AND THAT WILL BRING ABOUT NOW. WE HAVE 2 MILLION RIGHT? AROUND 2 MILLION. YEAH. AND SO THAT WILL BRING ABOUT $298,000. AND THERE'S ANOTHER SLIDE ON THAT BACK INTO THE GENERAL FUND AS WELL AS DID THE OTHER 200,000. AND I HAVE ANOTHER. SO WHAT DID YOU SAY THAT. NO NO NO NO I'M NOT FINISHED YET. NO NO I KNOW, BUT I JUST HAVE A QUICK QUESTION. WHAT DID YOU SAY HOT TAX WAS? WHAT DO YOU MEAN FOR TWO? YEAH, 3.2 MILLION PER PENNY. OKAY, SO THE TOTAL IS THE TOTAL IS RIGHT AROUND $30 MILLION. BUT THAT INCLUDES ALL 11 PENNIES. OKAY. SO WE FACTORED IN A 4% ON OUR ADMINISTRATIVE INTO THIS BUDGET. YES, MA'AM. YES, BUT NOT SO 4% INTO THE GENERAL FUND, BUT NOT ON THINGS LIKE THE DEBT SERVICE PORTION OF HOT OR THE AMOUNT OWED TO THE DEVELOPER. SO IT STILL WOULD BE LIKE 900,000. RIGHT. IT'S RIGHT AROUND 613,000, I THINK. OKAY. IT IS. YEAH. AND SO IN TERMS OF, YOU KNOW, CASH AND RESERVES, SOME YEARS WE ADD, SOME YEARS WE SUBTRACT IF WE HAD A LOWER IF WE. DAVID'S MARGINS WILL BE SLIMMER. GUESS IT'LL BE IT'LL BE A SLIMMER MARGIN. AND IF YOU DREW IT UP BY ANNUALLY THEN MONEY GOES BACK. BUT IT'S A SMALLER AMOUNT. [03:50:01] SO TRANSFER SMALLER AMOUNTS ARE PROBABLY EASIER FOR BUDGETING BUT IT ALSO DECREASES. THAT MAKES THAT MORE OF A ONE TIME FIX RIGHT? WHEN YOUR MARGINS ARE SMALLER AND THERE'S LESS TO TRUE UP, YOU WILL HAVE LESS AVAILABLE TO TRUE UP NEXT YEAR. IF THAT MAKES SENSE. YEAH, THAT'S THAT'S EFFICIENCY. I MEAN, IN MY OPINION, THAT'S THAT'S BASICALLY WITHOUT A DOUBT. AND IF THIS IS AN APPROACH COUNCIL WANTS TO TAKE MOVING INTO THE FUTURE, WE'RE GOING TO REPORT ON THAT. WE'RE GOING TO SHOW YOU THAT THE TRUE COST OF GARAGE FOR POLICE DEPARTMENT IS THIS MUCH. AND THE TRUE UP RELATED TO THAT FUND BALANCE COMING BACK IN IS THIS MUCH. AND SO THE BUY DOWN MIGHT BE DIFFERENT NEXT YEAR THAN IT IS THIS YEAR, BUT YOU'LL BE ABLE TO SEE IT YEAR OVER YEAR AND COMPARE BOTH THE TRUE COST AND THEN WHAT THAT TRUE UP IS AND WHAT THE FINAL COST IS. SO THAT'S REPORTING WE CAN DO. AND I THINK IF WE CONTINUE TO MOVE FORWARD WITH THIS SORT OF APPROACH, WE HAVE TO DO THAT BECAUSE WE NEED TO UNDERSTAND THAT EVEN IF THIS YEAR'S COST IS $1,000 PER VEHICLE, IT'S ONLY BECAUSE WE BOUGHT IT DOWN BY $250. RIGHT? AND SO WE NEED TO BE ABLE TO COMPARE THAT YEAR OVER YEAR. AND THAT'S THAT'S KIND OF THE APPROACH THAT I WAS SUGGESTING THAT WE GET AT WHERE, YOU KNOW, YOU CAN BUDGET LESS, BUT ALSO, YOU KNOW, IN TERMS OF IT, YOU KNOW, WE HEARD FROM HOPE THAT WE HAD FIVE BUDGETED POSITIONS. ARE THOSE POSITIONS. IS THAT MONEY BEING CHEWED UP AS WELL? YEAH. SO SOME OF IT WHEN WE HAVE IT PROJECTS THAT FUNDING THAT WAS INTENDED FOR IT IS MOVED OVER TO HELP FUND THOSE CAPITAL PROJECTS. RIGHT. COUNCIL IN THE LAST 2 OR 3 YEARS HAS BEEN A YEAR END BUDGET AMENDMENT WHERE THEY SAY, OKAY, THIS MONEY WASN'T USED FOR POSITIONS IN IT, BUT WE HAVE MS. COMING OR WE'RE TRYING TO FUND THIS IT PROJECT. AND SO WE MOVED IT OVER TO THE TECH IMPROVEMENT FUND FOR CAPITAL PURPOSES. BUT IT'S TIED UP ONE WAY OR THE OTHER. AND IN THIS CASE, WE'RE GOING TO BE CHEWING UP $500,000 RELATED TO FACILITIES. AND IT AND IT'S COMING TO THE GENERAL FUND. SO WE WERE REALLY HOPING THAT THE APPROACH THAT WE'RE USING ALIGNS WITH WHAT COUNCIL HAD IN MIND AND HINTED AT AT THE LAST COUNCIL MEETING. I THINK WE WOULD I WOULD LIKE TO SEE AND WHAT I WAS PROPOSING WAS A CLEAR, DEFINED POLICY FOR THE INTERNAL SERVICE. FUNDS CAN'T GO OVER ALL OF THEM, BUT THE SPECIFIC ONES, LIKE GARAGE IT. WE NEED TO LOOK AT WHAT WE WOULD FEEL COMFORTABLE. AND OVER THE LAST TEN YEARS, LOOKING AT GARAGE, I THINK, YOU KNOW, 4 OR $500,000 AS THE BREAK EVEN POINT OVER TIME WOULD BE AN APPROPRIATE APPROACH FOR COUNCIL. AND I THINK THAT'S WHAT WE'VE GOT. YEAH, I THINK THAT'S ABOUT WHAT WE'RE GETTING DOWN TO. YEAH. IT'S ABOUT BRINGING FORWARD A POLICY. WE CAN CERTAINLY COMMUNICATE THAT IN A POLICY. YEAH, WE'RE HAPPY TO PUT IT INTO A POLICY. BUT THAT'S THAT'S DEFINITELY WHAT WE'VE ADOPTED HERE. SO AGREE. AND BOB. SO THEN THE INTEREST FROM THESE FUNDS I THINK IN DAVID'S BUDGET IT WAS 38,000. WAS THAT PUT INTO THE GENERAL FUND. SO INTEREST IS ALLOCATED IN THE FUND WHERE IT'S ACCRUED. SO IF THE 38,000 WAS ACCRUED IN GENERAL FUND, IT WOULD GO TO FUND BALANCE IN GENERAL OR I'M SORRY, IF THE FUND BALANCE WAS ACCRUED IN GARAGE IT WOULD GO TO GARAGE FUND BALANCE. AND SO YOU'RE SEEING IT IN THAT TOTAL. RIGHT. AND SO THAT WOULD ALSO BE PART OF WHAT'S CREWED UP. IF WE'RE TRAINING UP TO BACK TO THE FUNDS THEN ANY INTEREST ACCRUED THERE IS PART OF THAT. AND UNFORTUNATELY, YOU KNOW WHEN YOU FLUSH OUT THOSE FUNDS, IT ALL DOESN'T GO BACK TO THE GENERAL FUND BECAUSE IT ALL DIDN'T COME FROM THE GENERAL FUND. AS A MATTER OF FACT, THE MAJORITY OF IT PROBABLY CAME FROM THE ENTERPRISE FUND. SO WHAT'S WHAT'S THE RISK ANALYSIS OF INFORMING THE AMOUNT OF REDUCTION IN THE FUND BALANCE? OR ARE WE JUST TRYING TO HIT A NUMBER? SO IN THIS CASE, WE ARE SPECIFICALLY LOOKING AT THE FACT THAT WE LOST $440,000 IN THE GENERAL. LET'S TRY TO HIT A NUMBER AND WE'RE SOLVING FOR THAT. I'M TRYING TO HIT A NUMBER TRYING NOT TO RAISE TAXES. IF YOU IF YOU IT'S NOT JUST HITTING A NUMBER. YOU'RE PUTTING MONEY INTO THAT. OTHERWISE WOULD BE AN EXTENSION OF THE CITY'S GENERAL FUND BACK INTO THE GENERAL FUND. YOU'RE BUDGETING LESS GAS PRICES. I THINK I DON'T KNOW IF DAVID HAS A SPECIFIC NUMBER, BUT LAST YEAR'S OR THIS YEAR'S GAS PRICE, WHAT WAS IT OVER THE TOTAL NUMBER THAT WE BUILD THE DEPARTMENT FOR BUDGET FOR THE DEPARTMENT WAS 350. IN THE BUDGET YOU HAVE NOW IS IT WAS ROUGHLY AROUND $303.50, A HIGH NUMBER. BUT ACTUALLY IN REALITY IT WAS 2.27. THAT'S UNLEADED AND DIESEL BY WEIGHT. SO WE HAVE 350. WE'RE BUDGETING FOR. BUT THAT'S NOT GOOD. IF GAS GOES TO 360. BUT FUEL AND LUBRICANTS. NO, IT'S MORE THAN THAT. IT'S ALSO THE OPERATION OF THE PUMPS. IT'S THE PUMP ATTENDANT. IT'S THE MAINTENANCE OF THE TANKS. IT'S ALL THOSE THINGS. THAT PRICE GOES TO 360. WELL, WE'RE ALL DOING BUDGET AMENDMENTS ANYWAY, SO WE'RE LOWERING THE MARGINS. AND IT'S, IT'S A, I BELIEVE A BETTER WAY TO BUDGET GOING FORWARD. YOU HAVE LESS IN CASH AND FUND BALANCE. BUT 120 HOLD ON RATE THE 120 DAYS, THE 120 DAYS IN THE 90 DAYS REQUIRED BY THE [03:55:08] CHARTER AND 120 DAYS BY COUNCIL THAT PAYS THE GARAGE. THAT IS ADDITIONAL. YOU WOULD SAY CASH RESERVE FUND BALANCE THAT WOULD BE PAYING THE GARAGE BECAUSE IT'S AN INTERNAL SERVICE FUND. CORRECT. YOU'RE SAYING TAKE IT RIGHT DOWN TO 90 DAYS? NO, NO, NOT FROM THE INTERNAL SERVICE FUNDS IN MY OPINION. DON'T NEED CASH RESERVE. I THINK IT'S AN APPROPRIATE BUDGETING PROCEDURE TO HAVE AN AMOUNT THAT COUNCIL DECIDES. I THINK 500,000 IS TALKING ABOUT THE GENERAL FUND, RESERVE AND GENERAL FUND FUNDS. MURRAY. THE GENERAL FUND. DEPARTMENTS. FUND. NO. THE GENERAL FUND DEPARTMENTS. FUND. THE GARAGE AND IT IN THE INTERNAL SERVICE FUNDS. YOU HAVE A 120 DAY SET BY COUNCIL. 90 DAY RESERVE FUND. BALANCE IN CASH. CORRECT. AM I SPEAKING? CORRECT? BUDGET SPEAK? YES. THAT IN CASE OF AN EMERGENCY. IN CASE YOU NEED TO DRAW DOWN ON THOSE RESERVE FUND BALANCE, CASH RESERVE FUND BALANCE THAT WOULD FUND THE GARAGE OPERATIONS, IT WOULD FUND IT OPERATIONS. IT'S ALREADY ALL ALL THERE BAKED INTO THE CAKE. OKAY. THE UNFORESEEN EXPENSES THAT DAVID WOULD NOT HAVE TO COME TO COUNCIL TO SAY, I NEED A NEW WHATEVER. WHATEVER BREAKS, YOU WOULD NOT NEED TO COME TO COUNCIL FOR THAT. ANYTHING OVER? LET'S SAY IT'S 100,000. WE HAVE A GOOD YEAR. IT'S 100,000 OVER THAT 500,000. THAT WOULD BE TRUDE UP AND BROUGHT BACK TO THE DEPARTMENT 100%. EXACTLY. ANALYSIS OF THAT. WHAT IS THAT LEVEL, THOUGH? THAT WE WE WE STICK IN THERE. WE PLUG IN THERE FOR FOR ANY UNEXPECTED THINGS THAT ARE GOING TO NEED FUNDING. WELL MY ORIGINAL AND BEFORE WE GOT INTO THE GAS AND HOW EVERYTHING'S ALL LUMPED IN TOGETHER WAS IT'S ABOUT 227. LOOK AT THE LAST 12 YEARS OF THE VARIABILITY RATE OF GASOLINE, WHICH IS LIKE 6.4%. YOU JUST SAY, LET'S JUST CALL IT AN EVEN 10%, AND THEN THAT EVEN 10%, YOU COULD ADD TO THE HIGHEST GAS PRICE THAT WE PAID THE PREVIOUS YEAR. AND THEN THAT'S WHAT YOU WOULD BUDGET. THAT WAS MY IDEA. BUT YOU CAN LOOK AT THE LAST TEN YEARS OF THE GARAGES CASH RESERVE AND SEE IT REALLY DIDN'T DIP BELOW 500,000. OKAY, THE BREAK EVEN POINT OVER TIME WAS ABOUT $1 MILLION. SO IT'S BASICALLY HAS $1 MILLION IN CASH RESERVE FUND BALANCE OVER THE LAST TEN YEARS. GIVE OR TAKE LESS THAN HALF A MILLION. BASING IT ON HISTORICAL DATA, BASING ON A HISTORICAL ANSWER TO MY QUESTION, I THINK THAT THERE'S REALLY GOOD POLICY ITEMS THERE THAT I THINK WILL BE ABLE TO BRING BACK TO COUNCIL AFTER THE BUDGET IS COMPLETE. I DON'T THINK THAT WILL BE A PROBLEM AND ALSO UNDERSTAND IF WE HAVE A BAD DEAL AND SOMETHING HAPPENS, IT ALL DOESN'T. YOU'RE GOING TO HAVE TO HIT IF LET'S JUST SAY WE DEPLETED THAT AND WE'RE SHORT AND WE'VE GOT TO DO SOMETHING GUEST SHOT UP OR WE LOST A MAJOR PIECE OF EQUIPMENT. I MEAN, DEPENDING ON WHERE THE MAJOR PIECE OF EQUIPMENT MIGHT. THAT'S NOT THE BEST EXAMPLE, BUT LET'S JUST SAY GAS SHOT UP. AND THAT CAUSED US TO BREAK THE $500,000 THAT WOULD BE ASSESSED ACROSS ALL FUNDS, NOT JUST THE GENERAL FUND. THAT FEE WOULD BE ADJUSTED ACROSS ALL FUNDS. SO THE ENTERPRISE FUNDS AND EVERYBODY ELSE WOULD HAVE TO KICK IN, AND IT WOULD START CHUNKING DOWN THE 90 TO 120 DAY RESERVE CASH FUND BALANCE IN THOSE FUNDS AND THOSE FUNDS. BUT IT WOULD BE POSSIBLE TO HAVE 120 DAYS IN THE GENERAL FUND, BUT TO KEEP THE GARAGE FUND AT 90 DAYS. I MEAN, THESE ARE TWO SEPARATE FUNDS. ACTUALLY, WE'RE NOT EVEN RELATING INTO DAYS NOW. WE'RE DOING WHAT? LONG LINES, WHAT ALEX TALKED ABOUT. WE'VE GONE BACK. WE'VE LOOKED AT WE DIDN'T GO BACK AS FAR AS ALEX DID, BUT WE LOOKED AT IT HISTORICALLY, JUST IN RECENT TIMES, BECAUSE THERE'S ALL KINDS OF THINGS THAT IMPACT THESE THINGS WE STILL DON'T KNOW. AND THERE'S ZERO IMPACT IN THIS BUDGET SHOWN FOR ANYTHING THAT TARIFFS MAY DO. WE'RE HOPING FOR THE BEST ON THAT. THAT WE JUST TOOK WE'RE NOT SHOOTING FOR A NUMBER OF DAYS IN THOSE BECAUSE THEY'RE REALLY NOT OPERATIONAL DAYS IN THOSE FUNDS. SO WE'RE REALLY LOOKING AT TRUE COST IN A BASICALLY A MARGIN. IF SOMETHING GOES WRONG, IT'S SORT OF LIKE A 5% CONTINGENCY. JUST JUST. BUT THE REASON I, THE REASON I SAY CAUTION IS BECAUSE YOUR BACKSTOP ON THAT NOW BECOMES YOUR 120. IT BECOMES YOUR YES. IT BECOMES NOT EVEN 120, IT BECOMES YOUR 110. IT BECOMES YOUR FUND BALANCE. SO WHERE DID WE ADD BACK IN BEFORE. PERCENT FROM HIGH TAX HERE. LIKE WHERE IS THAT. SO IT IS INCLUDED. SO WAIT THE 4% IS IN YOUR REVENUE. IT'S IN THE 84 TO 62. 330 THE 4%. IF YOU OPEN YOUR BUDGET AND YOU LOOK AT THE GENERAL FUND BEHIND THE GENERAL FUND TAB, AND IT'S GOING TO BE PAGE FIVE FIVE, AND AT THE VERY TOP YOU'RE GOING TO SEE THE [04:00:06] HOT COLLECTIONS ADMINISTRATIVE FEE. IT COMES IN AT 625 625 400. AND THE STR REGULATION ADMINISTRATION FEE AT 46,000. FIVE. AND THEN CAN I HAVE A ASK A QUESTION? WELL, THAT'S JUST EXCUSE ME, COUNSEL. WE'VE HAD BOTH SITTING HERE WAITING. TRY TO GET ANY QUESTIONS. SO EARLIER Y'ALL WERE TALKING ABOUT MULTIPLE DIFFERENT SOFTWARE UPGRADES IMPLEMENTATION. AND YOU STATED THAT YOU WERE GOING TO KEEP A MILLION AND A HALF AND THE CENTRAL SERVICES FUND FOR THAT PURPOSE, FOUR FACILITIES. SO THERE'S FOUR ITEMS IN THE CENTRAL SERVICES FUND. YOU'VE GOT MAILROOM, YOU'VE GOT COMMUNITY OUTREACH, YOU'VE GOT FACILITIES, AND YOU'VE GOT IT. SO THAT FUND BALANCE, YOUR REASONING WAS FOR SOFTWARE UPGRADES. OKAY. WELL, ON THE FOR A PORTION OF IT, THE SECOND PORTION OF IT WOULD BE ANY FACILITIES, THINGS LIKE THE CHILLERS OR THAT SORT OF THING IF ANYTHING GOES WRONG FACILITY WISE. ADDITIONALLY, WE'RE TAKING ON NEW FACILITIES WITH FROM PARK BOARD. RIGHT. WE'RE TAKING THESE PARKS OVER, AND THERE ARE FACILITY UNKNOWNS. SO THERE'S SEVERAL AREAS IN WHICH WE'RE ALSO CONCERNED ABOUT FACILITIES COMING INTO THE COMING YEAR. ALL RIGHT. LET ME GET A LITTLE BIT MORE SPECIFIC THEN I'D LIKE TO ADD SOMETHING AS WELL. SORRY. OH, OKAY. MY TRAIN OF THOUGHT. COME ON. OKAY. SO YOU'RE LEAVING THAT AT 1.5? ALL RIGHT, SO 500,000 IS GOING BACK TO THE DEPARTMENTS FOR CHARGES. CORRECT. ALL RIGHT. AND YOU SAID THAT THAT 1.5. I KNOW THAT YOU JUST ADDED A LOT TO THAT LIST, BUT I'M GOING BACK TO THE MAJOR EXPENSE THAT YOU JUST STATED ON SOFTWARE AND UPGRADES AND ALL THAT. WHY IS IT THAT WE WOULD NOT BE ABLE TO GO BACK TO THE TECHNOLOGY IMPROVEMENT FUND AND UTILIZE THAT FUND BALANCE INSTEAD OF. SO THAT IS THE FIRST PLACE WE WOULD GO WITHOUT A DOUBT THAT THOSE ARE TWO SEPARATE FUNDS. RIGHT. THAT IS CORRECT. OKAY. SO IF THAT'S WHAT THAT FUND IS THERE FOR WHICH I READING THAT 3.2 MILLION. AM I READING THAT WRONG. AND THAT'S ON PAGE SF-1. SF FOUR SF ONE SF ONE. OKAY. GO AHEAD. SO WE'VE GOT, YOU KNOW, WE'VE GOT A VERY COMPLEX AMOUNTS OF FUNDS AND A LOT OF THEM HAVE FUND BALANCES IN IT. SO AT SOME POINT IN TIME INSTEAD OF, YOU KNOW, WE WE'VE GOT 2 MILLION OVER HERE IN CENTRAL SERVICES FUND. I GET THAT IT INCLUDES FOUR SILOS OF EXPENSES. BUT THE MOST IMPORTANT PART OF THAT EXPENSE THAT YOU JUST STATED WAS SOFTWARE AND UPGRADES. BUT YET WE COME OVER HERE TO SF ONE UNDER SPECIAL REVENUE FUNDS, WHERE A TECHNOLOGY IMPROVEMENT FUNDS AT 3.2 MILLION. SO THAT'S THE CARRY FORWARD. THAT'S THE BEGINNING. HOW MUCH IS IT THAT ACCOUNT. SO IF YOU GO TO THE NEXT PAGE YOU'RE GOING TO SEE THE EXPENDITURES IN THE TECHNOLOGY IMPROVEMENT FUND ARE PROGRAMED AT $3.6 MILLION. AND WE'RE PROJECTING NO ENDING FUND BALANCE IN THAT FUND. SO A LOT OF THIS IS CARRY FORWARD RELATED TO THE ERP, RELATED TO MS., RELATED TO THE HARDWARE PROJECTS. AND SO EVEN THOUGH THEY WEREN'T FINISHED THIS YEAR, SO HEADING INTO FISCAL YEAR 26, WE'RE STILL DOING ERP. WE'RE STILL DOING ALL OF THESE PROJECTS. IT'S IN THE FUND BALANCE AND THERE'S ADDITIONAL REVENUE ASSOCIATED WITH IT. BUT THEN ON THE EXPENDITURE SIDE, WE'RE PLANNING TO SPEND ALL OF IT IN THE COMING YEAR. OKAY, BUT WAIT A MINUTE. THIS IS A TECH FUND. THIS ISN'T THE I GET IT, BUT ARE YOU SAYING THAT THE SOFTWARE UPGRADES AND THE IMPLEMENTATION OF WHAT YOU JUST SAID ON THESE CENTRAL SERVICES FUNDS NOT INCLUDED IN THOSE PROJECTS? SO THANK YOU. SO IN THE IMPROVEMENT FUND YOU'RE DOING ALL OF YOUR CAPITAL RELATED TO TECH JUST LIKE YOU SAID. OKAY. THE CARRY FORWARD THAT WE ARE SHOWING ON SF ONE IN THE BEGINNING FUND BALANCE IS PROJECTS THAT ARE IN PROGRESS. AND WE'RE PLANNING TO FINISH NEXT YEAR. RIGHT. AND SO YOU'RE SEEING IT AS FUND BALANCE COMING IN. YOU'RE SEEING ADDITIONAL REVENUE RELATED TO SOME TECH ITEMS. AND THEN ON THE EXPENDITURE SIDE ON PAGE TWO YOU'RE SEEING THE FULL AMOUNT BUDGETED AS EXPENDITURES. AND WE'RE NOT PROJECTING A YEAR END FUND BALANCE NOW WITHOUT AN ANSWER. MY QUESTION. IS THE ARE THE PROJECTS YOU TALKED ABOUT BETWEEN YOU AND DAN OF THE SOFTWARE UPGRADES AND IMPLEMENTATION OF THE DIFFERENT SOFTWARES YOU NAMED UNDER THE [04:05:01] CENTRAL SERVICE FUND? ARE THOSE PROJECTS NOT ALREADY INCLUDED BEING THAT WE'VE ALREADY CONTRACTED FOR THEM TO BE DONE RIGHT? THEY ARE. SO THEY. THEN WHAT? YOU'RE RIGHT. OKAY. SO ESSENTIALLY WHAT WE'RE SAYING IS IF SOMETHING UNFORESEEN HAPPENS, THERE'S NO THERE'S NOT ADDITIONAL FUNDING. AND SO IN OUR OPINION WE'RE LEAVING THEM 1.5 MILLION. CORRECT. ON THE OTHER. THAT IS WHAT IT IS. OKAY. THAT'S WHAT WE'RE LEAVING THERE FOR THAT PURPOSE. SO WE DON'T WE DON'T WE? YOU HAVE IT AT ZERO. YOU'RE FORECASTING THAT FUND BALANCE OF THE TECHNOLOGY IMPROVEMENT FUND AT ZERO YEAR END. RIGHT. BUT WE DON'T KNOW THAT IF THAT'S THE ACTUAL THAT'S JUST THE BUDGETED FORECAST. CORRECT. ZERO. YES. OKAY. SO IF THAT IF WE END UP WITH A MILLION, MILLION AND A HALF DOLLAR BALANCE IN TECHNOLOGY IMPROVEMENT FUND, WOULD FUTURE PROJECTS NOT BE FUNDED BY THAT INSTEAD OF CENTRAL SERVICES FUND? THAT'S WHAT I'M TRYING TO. YES. ALTHOUGH PART OF IT IS WITH ANY CAPITAL. RIGHT. THAT'S REAL CONFUSING. SOMETIMES BUDGET IS REALLY CONFUSING. NO, I GET A BUDGET. AND I KNOW MATH IS REALLY HARD. I ALMOST BOUGHT YOU ALL A BEER. NO, IT'S REALLY HARD. I KNOW IT'S HARD TO UNDERSTAND, BUT THERE'S 600 AND SOMETHING PAGES HERE. BUT IT'S NOT. I MEAN, AT SOME POINT IN TIME TRYING TO SIMPLIFY THIS, I MEAN, LIKE, HOW MANY FUNDS DO WE HAVE? A LOT. THERE'S LIKE 26 SPECIAL REVENUE FUNDS. THERE'S FIVE. THERE'S A LOT. THERE'S FIVE ENTERPRISE FUNDS. BUT PART OF IT IS IS AND PART OF IT STEMS FROM THE WAY LEGISLATIVE BODIES WANT TO MAKE SURE THAT CERTAIN SUMS OF MONEY ARE ONLY USED FOR CERTAIN PURPOSES. AND SO WHEN THAT HAPPENS, THEN WE CREATE A FUND SO THAT ALL THAT ACTIVITY HAPPENS IN ONE PLACE. AND IT IS A LOT TO KEEP TRACK OF TRACKED, TRACKABLE AND ACCOUNTABLE. YES, BUT IT'S MUCH EASIER TO SAY. IT'S LIKE HAVING, YOU KNOW, ME OPENING A NEW CONTRACT ON A HOUSE, AND I WANT A SEPARATE CHECKING ACCOUNT FOR THOSE. THAT'S EXACTLY DEPOSITS AND EXPENDITURES. I UNDERSTAND THAT. YEAH, BUT SOME OF THEM OVERLAP IN A WAY THAT CREATES A LOT OF QUESTIONING. YEAH. SO THE IMPROVEMENT FUNDS IN THE SPECIAL REVENUE FUND SHOULD BE SEEN AS THE FUNDS HELPING PAY FOR THEIR CAPITAL ITEMS. RIGHT. AND THE INTERNAL SERVICE PORTION IS MAINLY MAINTENANCE AND OPERATIONS. HOWEVER, BECAUSE WE DON'T FORESEE THERE BEING ANY EXTRA FUND BALANCE IN THE TECHNOLOGY IMPROVEMENT FUND IN OUR MINDS, IF THERE'S MONEY ASSOCIATED WITH TECHNOLOGY THAT'S ALREADY BEEN COMMITTED TO TECHNOLOGY, IT IS A GOOD PURPOSE FOR THAT FUND BALANCE, SHOULD WE NEED IT? IS IT A GOOD IDEA TO HAVE A POLICY ON WHAT THAT BREAK EVEN POINT IS? IT IS. AND I THINK THAT COUNCIL HAS RAISED REALLY GOOD IDEAS RELATED TO THAT. AND I THINK AS THIS BUDGET FINISHES UP, THAT'S ABSOLUTELY A POLICY WE CAN BRING FORWARD. AND I GUESS THAT'S THE BIGGEST THING IS I WANT TO IT'S STILL ONE OF THE LINES. I'M SORRY. IT'S ALL RIGHT. I WANT, YOU KNOW, IN A VERY. AND. BRIAN, I'M NOT PICKING ON YOU. I'M JUST ACTUALLY. BUT THIS IS LITERALLY MY THOUGHT PROCESS AND A VERY SIMPLE, BASIC WAY. WHEN WE FIRST INITIATED THIS, IF WE HAD NOT IF BRIAN AND Y'ALL HAD NOT BEEN OPEN TO THINGS THAT WE SUGGESTED, THE THINGS THAT WE BROUGHT UP AND HAD QUESTIONS ON, THEN WE MIGHT LOSE SEVERAL HUNDRED THOUSAND DOLLARS OUT OF EACH DEPARTMENT. THEY MIGHT BE PRESSED WITH NO OPTIONS BUT TO CUT STAFF OR TO CUT CERTAIN PROJECTS. AND SO I'M GLAD THAT Y'ALL STAYED OPEN ON THIS, BUT IN A VERY SIMPLE, BASIC WAY. THAT'S WHY TO ME, INDIVIDUALLY AND REPRESENTING THE PEOPLE THAT HAVE ASKED ME TO, THAT'S WHY THIS IS SO IMPORTANT. BECAUSE WHEN YOU HAVE AN INABILITY TO EXPLAIN THIS. AND YOU HAVE TO. AND YOU'RE FACED AS A REPRESENTATIVE TO GIVE REASONING AS TO WHY THEY HAVE TO CUT STAFF OR REASONING WHY THEY DON'T GET A RAISE, THE REASONING WHY WE HAVE DECREPIT EQUIPMENT OR STREETS THAT WE CAN'T GET DOWN. ALL THAT COMES INTO PLAY WITH THIS. AND SO IT'S JUST GETTING TO A POINT TO WHERE SOME OF THESE AT SOME POINT IN TIME, I HOPE I'M HERE IN THE NEXT ELECTION PROCESS AND SIT HERE. BUT TO ME, IT'S VERY IMPORTANT TO GET TO A POINT TO WHERE WE ARE ABLE TO EXPLAIN OVERLAPS. WE'RE ABLE TO EXPLAIN THE MUDDY WATERS WHERE WE CAN SAY, HEY, LOOK, WE WE NEED THESE RAINY DAY FUNDS. WE NEED THE ABILITY TO HAVE THEM SEPARATED. BUT SOME OF THEM OVERLAP, AND SOME OF THEM CAN CREATE AND CAUSE A LITTLE BIT OF SECOND LITTLE SYNDROME WITH TELLING THESE DEPARTMENTS, [04:10:01] HEY, YOU'RE CUTTING. WE DON'T HAVE A CHOICE. THAT'S WHAT CITY COUNCIL IS TELLING US TO DO, AND THAT'S THE WAY IT'S GOING TO BE. BUT YET WE COME BACK HERE AND WE OPEN OUR MINDS A LITTLE BIT. WE SEE SOME THINGS THAT OTHER PEOPLE ARE DOING A LITTLE BIT DIFFERENTLY THAN WHAT WE'VE DONE. IT MAKES SENSE A LOT MORE TO THE TAXPAYERS. IT MAKES SENSE A LOT MORE TO THE DEPARTMENTS. ABSOLUTELY. I THINK THAT THAT'S WHAT IT DOES. BUT ALSO WE HAVE TO I HAVE TO IT'S MY JOB. THIS IS MY OATH THAT I TAKE TO TSM TO WARN YOU THAT YOU'RE ROLLING THE DICE BECAUSE YOU'RE YOU'RE GETTING YOU'RE GETTING OUT OF WHAT HAS BEEN THE COMFORT ZONE OF THE CITY AND THAT AND WHEN I SAY YOU'RE ROLLING THE DICE, I'M NOT SAYING THE SKY IS GOING TO FALL AND CRUSH EVERYBODY BUT YOU. EVERY TIME YOU REDUCE THESE AND THESE FUNDS, AS YOU START SPENDING DOWN ON ALL YOUR RESERVES IN THESE FUNDS, YOU ARE PUTTING AND EXPOSING YOUR EMERGENCY 120 DAYS MORE AT RISK. IT'S NOT IN ACCORDANCE WITH THE GOVERNMENT ACCOUNTING STANDARDS WHEN THERE'S NO BREAK EVEN POINT AND THERE'S NO SET POLICY. WHEN I DID WHEN I DID THE RESEARCH ON THESE INTERNAL SERVICE FUNDS AND HOW IS APPROPRIATE TO HANDLE IT. YOU KNOW, EVEN THE WASHINGTON STATE AUDITOR'S OFFICE SAYS ANY UNUSED FUNDS FROM A INTERNAL SERVICE FUND SHOULD BE CHARGED BACK TO THE DEPARTMENT FROM WHICH IT CAME. IT ACCOUNTED FOR A THE GOVERNING BODY NEEDS TO SET A POLICY FOR A RESERVE RESERVES. IF THERE'S NO POLICY, DOES EXACTLY WHAT WHAT THIS IS HERE. IT'S A MOVING TARGET AND IT SAYS IT BRINGS SCRUTINY. SURE. I MEAN, IT EVEN BRINGS SCRUTINY WITHIN ITSELF. WE STARTED THIS DISCUSSION, AND I THINK I HEARD FROM BRIAN AND DAN AND. YEAH, NO, THAT THAT'S THE DIRECTION THAT WE'RE GOING. YEAH. NO, I JUST WANTED TO MAKE SURE I HEARD THAT BECAUSE I SAID THAT I JUST IT'S A DON'T INTERRUPT ME. DON'T INTERRUPT ME. I UNDERSTAND HE GAVE YOU CREDIT FOR THAT. SO ACCEPT THE CREDIT. SAY THANK YOU. WE'RE HEADED DOWN THAT DIRECTION. YEAH, AND WE'RE ADDRESSING THAT. AND TO CLARIFY FOR EVERYBODY THAT'S WATCHING, I DON'T WANT ANYBODY TO THINK THESE WERE HONEY POTS BY ANY STRETCH, BECAUSE, NO, NOT ONE PENNY OF THAT MONEY COULD HAVE BEEN SPENT WITHOUT COUNCIL APPROVING IT. LET ME I WANT TO I WANT TO WALK THROUGH A SCENARIO HERE ON THIS AND KIND OF GUIDE ME AS I WALK THROUGH THE SCENARIO. THIS CURRENT TAX YEAR BROUGHT THE STAFF, BROUGHT A TAX RATE TO US THAT WAS HIGHER THAN WHAT THE COUNCIL APPROVED. AND SO YOU MADE NECESSARY CHANGES WITH THE BUDGET. YOU YOU FROZE HIRING A NUMBER OF OTHER THINGS THAT GET US DOWN TO THE BUDGET WE HAVE THIS YEAR. WE HAVE A TAX RATE THAT WILL BRING IN THE SAME AMOUNT OF REVENUE. BUT NOW STAFF IS RECOMMENDING EVEN LOWER THAN THAT TO COME IN HERE AND TO RECOMMEND A TAX RATE THAT'S EVEN LOWER THAN THE AMOUNT OF MONEY THAT WE WERE SPENDING LAST YEAR. SO TO MAKE THAT UP, WHAT YOU'VE DONE IS LOOKED AT THESE SERVICES, FUND AND TAP THOSE TO MAKE UP, SAY, THE $450,000 DEFICIT. MY QUESTION IS, THEN, AS WE MOVE THROUGH THIS, WHICH I DON'T UNDERSTAND THAT LOGIC ON WHY STAFF WAS DOING THAT, BUT THAT'S BUT THE QUESTION IS THEN THIS IS A ONE TIME FIX FOR THIS. IT IS. SO AS THAT BOTHERS ME, THAT BOTHERS ME A LOT BECAUSE WE'RE MOVING INTO SOME FUTURE HERE WITH THIS BUDGET. AND HOW DOES THAT IMPACT THE YEARS COMING UP? NOW YOU'VE TEED UP MY NEXT SLIDES, MAYOR. IF WE'RE READY TO KIND OF PROGRESS ON, THEN WE CAN COME BACK TO THIS IF WE NEED TO. AT THE BOTTOM OF THIS PINK COLUMN, YOU'LL SEE THE DEFICIT FROM 120 DAYS IN THE GENERAL FUND IS ALMOST $2.3 MILLION, AND I'M GOING TO COME BACK TO THAT NUMBER. IT'S AN IMPORTANT NUMBER TO REMEMBER. SO PROJECTING OUT THROUGH 2030. I'VE USED THIS IS JUST VERY ROUGH JUST FOR THE PURPOSES OF THIS DISCUSSION. A 1% GROWTH IN GENERAL FUND REVENUE THIS YEAR IT WAS A -16%. WITH THE INCREASES THAT OCCURRED IN 2025 AND GENERAL FUND EXPENDITURES, I'M PROJECTING AT A 3% GROWTH. OKAY. AND YOU'LL SEE WITH THOSE ASSUMPTIONS WHERE WE'RE AT TODAY, NO. BARRING ANYTHING I DON'T KNOW ABOUT WHICH IS MOST EVERYTHING, RIGHT. THE DAYS OF FUND BALANCE DECREASE TO 120 27, AND BY 2028 IT WOULD DECREASE BELOW THE 90 DAY MARK AND 83 DAYS. OKAY, SO ASSUMING NOTHING ZOOMING, THERE'S NO NEW CONSTRUCTION. YEAH. OR NOTHING SIGNIFICANT. RIGHT. OR THAT THERE'S NO MAJOR EXPENDITURE INCREASES THAT WOULD NO INCREASES IN PROPERTY TAXES EITHER. CORRECT. YEAH. IT ASSUMES HOLDING IT AT NO NEW REVENUE. IT DOESN'T ACCOUNT FOR NEW CONSTRUCTION. [04:15:01] WE HAVE IT IN THERE. WE HAVE A 1%. SO THE THIS YEAR, THE 1% IS LIKE $688,000. I THINK THAT'S WHAT'S ON THE COVER OF YOUR BUDGET. SOMETHING LIKE THAT. SO NEW VALUE JUST DOESN'T NECESSARILY BRING THAT MUCH ON AVERAGE TO THE CITY. BUT IT IS INCLUDED IN THAT. THAT'S INCLUDED IN THAT 1%. SO IN THIS SCENARIO YOU'RE SEEING FUND BALANCE DECREASING. OKAY. A GRAPHICAL REPRESENTATION OF THIS JUST FOR EVERYONE WHO'S LOOKING AT HOME. AND THEY'RE LIKE IT'S A LONG DISCUSSION. OKAY. THE BLUE BAR REPRESENTS FUND BALANCE. THE YELLOW BARS ARE 90 DAYS AND THE GREEN BARS ARE 120 DAYS. THE LITTLE ORANGE SQUARE IS SHOWING YOU FISCAL YEAR 25 AND 26 WHERE AS A RESULT OF THESE ONE TIME ACTIVITIES. AND FIXES. WE'VE HELD IT PRETTY STEADY CLOSE TO CLOSE TO THE 120 DAYS. WITHOUT THOSE ONE TIME SOLUTIONS. THIS IS HOW THE GENERAL FUND BALANCE DECREASES IN RELATION TO THE 120 DAYS AND THE 90 DAYS, AND YOU'LL SEE THAT IN FISCAL YEAR 28. UNDER THESE SCENARIOS, WE WOULD FALL BELOW THE 90 DAYS. COULD YOU REPEAT YOUR METRIC IN CREATING THIS BAR GRAPH. SO THE 1% GROWTH IN REVENUE AND THE 3% GROWTH IN EXPENDITURES. AND THAT ALIGNS WITH RECENT TRENDS. YOU KNOW THIS THE CITY TO ME IS A BUSINESS. IT'S LIKE ANY OTHER BUSINESS OUT THERE. AND OUR PRODUCT HERE AT THE CITY IS TO PROVIDE A MUNICIPAL GOVERNMENT THAT IS NOT ONLY SOLVENT AND FINANCIALLY STABLE NOW, BUT FOR MAKING DECISIONS NOW FOR THE FUTURE. AND OUR PRODUCT IS TO PROVIDE A GOOD QUALITY OF LIFE FOR OUR CITIZENS OUT THERE. NOW, THESE ONE TIME DECISIONS THAT WE'RE MAKING AND SO FORTH, THAT CONCERNS ME IN SETTING UP A SCENARIO THAT MAY NOT BE SUPPORTIVE OF WHAT I JUST MENTIONED IN THE FUTURE FOR THIS CITY. AND REALLY, I AGREE WITH THE IDEA THAT WE NEED TO BE CHEWING UP THE INTERNAL SERVICE FUNDS. I THINK THAT'S A GREAT IDEA, AND I THINK WE SHOULD ABSOLUTELY SET A POLICY AND CONTINUE WITH THAT. HOWEVER, AS WE MOVE INTO THAT, THERE WILL BE LESS AND LESS AVAILABLE IN THAT GROUP BECAUSE YOU'VE TIGHTENED UP YOUR MARGINS. AND SO IT DOES BECOME A ONE TIME SOLUTION, MAYBE THIS YEAR OR NEXT YEAR, BUT IT IS NOT NECESSARILY SOMETHING AVAILABLE AFTER THAT TO HELP BALANCE YOUR BUDGET. RIGHT. IT'S NOT YOUR PANACEA. AND IT'S EASY TO MAKE THOSE DECISIONS NOW. BUT 3 TO 5 YEARS FROM NOW, WE'RE GOING TO BE SADDLING PEOPLE, POSSIBLY COUNCILS, WITH YOU'RE NOT SUPPOSED TO HAVE RESERVE FUNDS IN YOUR INTERNAL SERVICE. I UNDERSTAND THAT I'M JUST MAKING A COMMENT HERE BECAUSE THERE'S OTHER ASPECTS OF THIS BUDGET THAT CONCERN ME ALSO. YES, MA'AM. SO IN CHEWING UP THESE SERVICE FUNDS, WE'RE ALSO LOWERING THE COSTS TO OUR DEPARTMENTS. YES, THAT IS THE BECAUSE YES, THOSE RESERVES CAME FROM CHARGING MORE TO THE DEPARTMENTS THAN WERE NECESSARY TO COVER OR THEY WOULDN'T HAVE. WE WOULDN'T HAVE DEVELOPED A RESERVE. SO IT'S ALSO AFFECTING A POSITIVE EFFECT ON ALL OUR DEPARTMENTS. ABSOLUTELY. BUT THAT WON'T SHOW UNTIL NEXT YEAR. AND THIS YEAR IT'S IN THE TEN YEAR 26. NO, NO, NO I'M SAYING YEAH, THIS IS 26. I'M JUST SAYING THAT IT WON'T BE IT WON'T SHOW IN AS A CREDIT TO THEM UNTIL NEXT YEAR. SO IT'S IN THIS CURRENT BUDGET YOU'RE LOOKING FOR ONE THAT WE'RE LOOKING TO APPROVE. YEAH, IT'S IN THERE. WE'VE ALREADY REPORTED OCTOBER 1ST. WE'VE REDUCED THEIR EXPENSES. YES. NOW. OKAY. THAT'S WHAT I'M ASKING. THE OTHER THING THAT WE DIDN'T JUST APPLY THE FUND BALANCE, WE TOOK IT, MATRICULATED IT BACK THROUGH THE FUNDS THAT CONTRIBUTED. SO IT NOT ONLY REDUCED COSTS FOR GENERAL FUND DEPARTMENTS, IT REDUCED COST IN YOUR ENTERPRISE FUNDS AND EVERYTHING ELSE. ANYBODY THAT PAID INTO THOSE FUNDS WILL SEE A REDUCTION IN THOSE AMENDMENTS. SO I GUESS WHAT, MAYOR, I'M UNDERSTANDING SO THAT IT DOESN'T SEEM AS THOUGH THE WAY THE WAY YOU'VE SAID IT IS LIKE, OKAY, WE GET THIS ONE TIME AND WE'RE GOING TO GO BROKE NEXT YEAR. NO, I DID NOT SAY, WELL, NO, NO, NO. I'M SAYING, OKAY, THAT'S ALL RIGHT. BUT I'M SAYING THE THING IS, IS THAT, YOU KNOW TO ME THAT WHY HAVE BOTH WHY HAVE 120 DAYS AND THESE INFLATED CHARGES. I, I UNDERSTAND THAT AND I CAN I CAN ANSWER THAT PORTION IF YOU WOULD LIKE. YEAH. PLEASE. 120 DAYS. AND THIS COMES BACK TO SOMETHING THAT'S GOING TO COME UP IN SOME OTHER DISCUSSIONS. THE 120 DAYS IS SOMETHING THAT BOND RATING COMPANIES LOOK AT IN TERMS OF THE STABILITY OF THE CITY. THEY DON'T LOOK AT IT AS A BACKUP FOR OVERRUNS AND OPERATIONAL EXPENSE. THEY LOOK AT IT AS TRUE EMERGENCY RESERVES. AND IF WE START BACKSTOPS THAT RESERVE AGAINST NORMAL EXPENSES, [04:20:01] THAT TENDS TO HARM YOU AND YOUR BOND RATINGS AND OTHER FINANCIAL LOOKS AT THE CITY, THAT FINANCIALLY HEALTHY CITY. I AGREE THAT THERE'S POLICIES THAT FINANCIALLY HEALTHY CITY HAS SOME DEGREE OF RESERVE BUILT INTO ITS NORMAL OPERATING EXPENSES THEY DON'T USE. IT'S JUST LIKE YOU HAVE YOUR YOU HAVE YOUR EMERGENCY FUND AT HOME. THAT'S NOT YOUR BACKSTOP. FOR IF GROCERIES GO UP NEXT MONTH, YOU HAVE TO ADJUST AND AND YOU DO THAT. SO I JUST WANT TO BE REAL CLEAR ON THAT. AND THAT'S WHY I SAY, AND THAT'S WHY IT'S MY JOB TO CAUTION YOU THAT IF YOU START USING YOUR 120 DAYS OR WE'RE NOT GOING TO HAVE 120 DAYS, IT DOESN'T LOOK, WE'RE GOING TO GET TO 220 DAYS IF YOU START USING YOUR GENERAL FUND RESERVE BALANCE AS YOUR BACKSTOP TO DAILY OPERATIONAL CHALLENGES, THAT BECOMES A CONCERN. IT'S A MAJOR PROBLEM. BUT BUT WE'VE ALSO GOT, YOU KNOW, BUT WE'RE LEAVING SOME IN THERE AND WE'RE NOT WE'RE NOT GOING NAKED. WE'RE NOT GOING. WE'RE WE'RE JUST SETTING A POLICY. AND I THINK WE'RE ALL IN AGREEMENT TO SAY, HEY, WE MIGHT HAVE A LITTLE BIT TOO MUCH IN THESE. AND WE HAVE WE CAN ALL SEEM TO AGREE THAT THERE NEEDS TO BE SOME IN EACH OF THOSE, WHICH I'M SEEING IN AGREEMENT HERE. BUT THEN, YOU KNOW, ON SPECIAL PROJECTS, THINGS THAT ARE COMING UP, THERE'S MULTIPLE OTHER FUNDS, AS YOU'VE SAID, SHEILA, THAT ARE EARMARKED FOR CERTAIN PROJECTS IN CERTAIN DEPARTMENTS THAT ARE ALSO PRETTY HEALTHY RIGHT NOW. SO IT'S IT'S NOT AS THOUGH, I GUESS, WHAT I'M TRYING TO SAY, WHETHER IT'S 110 DAYS OR 120 DAYS, THERE'S MULTIPLE OTHER, YOU KNOW, ENTERPRISE FUND, INTERNAL SERVICE FUNDS, DEBT SERVICE, I MEAN, LIKE THERE'S MULTIPLE OTHER FUNDS THAT ARE EARMARKED FOR CERTAIN PROJECTS THAT COME UP. TECHNOLOGY, WHATEVER THAT EXAMPLE MIGHT BE. SO I DON'T WANT IT TO SEEM LIKE WE'RE WE'RE, YOU KNOW, JUST BECAUSE WE'RE STANDING STRONG AND BEING EFFICIENT AND ASKING QUESTIONS AND LOOKING FOR OTHER OPPORTUNITIES WITHIN THIS BUDGET, I DON'T WANT IT TO SEEM LIKE THE CITY IS GOING BROKE. WE'RE FAR FROM IT. NO, I DON'T I AGREE, I DON'T THINK WE'RE SAYING THAT THE CITY IS SAYING THAT, BUT I'M GOING TO BE BROKE. WELL, I DO THINK THAT WE NEED TO BE COGNIZANT OF THE IMPACT TO GENERAL FUND BALANCE OVER TIME. YOUR JOB IS TO MAKE SURE WE'RE AWARE OF THAT. AND THAT'S EXACTLY WHAT MY JOB, HER JOB IS. AND THAT'S WHAT BOTHERS ME ABOUT THE BUDGET THAT WAS SUBMITTED TO COUNCIL HERE. BUT BUT IT'S COUNCIL'S JOB. WE DIRECT AND WILL PROVE THAT TAX RATE AND WE'LL SET THE FUTURE FOR THIS CITY. MAYOR I JUST WANT TO SAY ONE THING. I UNDERSTAND YOUR CONCERN. I REALLY DO. WE'RE TALKING ABOUT MONEY. THAT WAS IN A FUND THAT COULD BE APPROPRIATED AND USED. THAT'S TAXPAYER MONEY THAT IS ESSENTIALLY PAYING IT FORWARD. THAT'S CREATING A SAVING. IF THERE'S A TIME WHERE WE'RE GOING TO GO BELOW, WE'RE GOING TO START CHEWING AT OUR 120 DAYS AND WE CAN'T GO UNDER 90 DAYS. I THINK ANY ELECTED OFFICIAL WOULD LOOK AT THAT AND SAY, WE HAVE NOT. WE HAVE A FIDUCIARY RESPONSIBILITY TO MAKE SURE THAT WE ARE SOLVENT AS A CITY. I AGREE, AND I AGREE, WE ALL SHARE THAT SAME. I UNDERSTAND YOUR YOUR CONCERN, AND I DON'T THINK ANYONE AT THIS TABLE WOULD SAY, YOU KNOW WHAT, WE'RE GOING TO DIP AT 61 DAYS AND YOU'RE 2030. AND I REALLY I DON'T. I JUST DON'T THINK THAT ANYONE HERE THINKS THINGS LIKE THAT. THE POINT I WANTED TO MAKE EARLIER WHEN SHE WAS ON HER SIDE WAS SHE SHOWS US FALLING BELOW 90 DAYS. CHARTER DOESN'T ALLOW US TO FALL BELOW 90 DAYS. SO WE'RE WE'RE RESTRICTED BY THE CHARTER AT 90 DAYS. IF IT HAPPENS, IT TRIGGERS CERTAIN THINGS, TRIGGER CERTAIN THINGS LIKE THE 8% TRANSFER TO THE DEBT SERVICE FUND AND INFRASTRUCTURE FUND STOPS. SO THAT HAS OTHER IMPACTS. SO YOU KNOW IT'S UP TO US. COUNCIL SETS A POLICY. AND I THINK WHAT WE'RE DISCUSSING HERE IS REALLY GOOD. BUT WE HAVE TO YOU KNOW THE DECLINE IN RESERVES TRIGGERS OTHER THINGS TO HAPPEN. AND YOU KNOW WE HAVE TO IT'S PRUDENT ON US TO POINT ALL THOSE THINGS OUT TO TO COUNCIL. AND, YOU KNOW, THE ONE THING I CAN PROMISE YOU IS WE'RE UP FOR A BOND RATING REVIEW RIGHT NOW. I CAN PROMISE YOU THEY'RE WATCHING THIS PRESENTATION. OKAY. THE LAST TIME THEY MET WITH US, THEY WERE INTERESTED IN OUR RESERVES. THEY WERE INTERESTED IN OUR STABILITY OF THE 120 DAY RESERVE. THEY'RE INTERESTED IN OUR ABILITY TO RECOVER. AND ALL THOSE THINGS GO INTO. INTO THEIR ANALYSIS. AND, YOU KNOW, TO TO. I WOULD SAY THAT ANYTIME YOU LOOK AT A CITY AND THE CITY IS TALKING ABOUT REDUCING RESERVES OR DOING THINGS THAT THAT WEAKEN THEIR OVERALL FINANCIAL CONDITION. NOW, AGAIN, THE 120 DAY RESERVE IS 120 DAYS. BRIGHT, SUNNY, BEAUTIFUL DAY OUTSIDE. IT MIGHT BE 60 DAYS OR LESS FOLLOWING A HURRICANE, [04:25:03] SO YOU CAN'T SAY THAT THAT'S GOING TO OPERATE. WE'RE NOT GOING TO BE ABLE TO OPERATE FOR 120 DAYS ON 120 DAYS, BECAUSE WE CAN'T. AND WHEN YOU WHEN YOU OPEN UP THE EMERGENCY PROTOCOLS. TIME, TIME, TIME AND A HALF. EVERYBODY'S ON OVERTIME. YEAH. SO ALL THOSE COSTS GO UP. SO I MEAN, IF YOU EVER STRESS THAT 120 DAYS, YOU KNOW, IN MODELING YOU STRESS THINGS, YOU HAVE 120 DAYS AND YOU SAY, WELL, IN THE EVENT OF A HURRICANE, OUR COSTS ARE OVER 30%. SO IT'S THAT 120 DAYS RESERVE BECOME AT THAT POINT. SO, YOU KNOW, WE DON'T MODEL THE 120 DAY RESERVES AND STRESS IT. MAYBE WE SHOULD. AND THAT WOULD BE ANOTHER PIECE OF INFORMATION WE CAN GIVE COUNSEL. AS YOU'RE CONSIDERING THESE THINGS, I THINK ALL OF THESE ARE REAL HEALTHY DISCUSSIONS FOR US TO HAVE. THE MORE INFORMATION WE CAN GIVE YOU, THE BETTER BY ESTABLISHING A LEVEL OF RESERVES INSIDE OF THOSE INTERNAL SERVICES THAT WE'RE ALL COMFORTABLE WITH. THAT'S A TARGET MANAGEMENT HAS TO MANAGE TO, AND THAT'S ALL A GOOD THING. SO WE'RE IN AGREEMENT. SO LOOKING AT THE TAX RATE OPTIONS THAT COUNCIL HAS THE NO NEW REVENUE IS THE 408 687 WHICH IS WHAT WE HAVE PRESENTED THIS BUDGET ON TODAY. A BALANCED BUDGET WITHOUT THAT DEFICIT OF 450,000 THAT WE ORIGINALLY HAD WOULD BE THE FOUR ONE, TWO FIVE HALFWAY IN BETWEEN. NO NEW REVENUE AND VOTER APPROVAL RATE BRINGS YOU $2.2 MILLION, WHICH WOULD GET YOU TO 120 DAYS. AND YOUR VOTER APPROVAL RATE IS THE 0.448764. CAN YOU REPEAT THAT? YES. 0.428726. THAT GETS YOU TO 120 DAYS. THAT IS CORRECT. IT IS ON 2.1. SORRY. YEAH. SO IT'S ON THE NEXT SLIDE. SO YOU'RE ONCE AGAIN YOU SEE IT HERE. WE'VE GOT THE NO NEW REVENUE AND THE VOTER APPROVAL RATE AS YOUR BRACKETS. RIGHT. YOUR LEGISLATIVE BRACKETS BALANCED BASED ON WHAT WE HAD BEFORE FRIDAY IS THE 412, FIVE AND HALFWAY IN BETWEEN. NO NEW REVENUE AND VOTER APPROVAL RATE BRINGS YOU THE $2.271 MILLION, WHICH I TOLD YOU TO KEEP THAT NUMBER IN MIND. IT'S ALMOST EXACTLY WHAT WE ARE. DOWN FROM 120 DAYS. 2.2741%. OKAY. SO JUST TO BRING THE NUMBERS TOGETHER FOR EVERYONE, IF ANYBODY WAS INTERESTED IN GETTING TO THAT 120 DAYS, IT'S THAT HALFWAY IN-BETWEEN RATE. SO I GOT ONE. JUST ONE QUESTION REAL QUICK. THE GO BACK SLIDE. ANOTHER ONE. NO. GO FORWARD. RIGHT ONE. RIGHT THERE. SO THE PROPOSED BUDGET, WITH ALL THE NUMBERS IN THERE RIGHT NOW, CURRENTLY WITHOUT ANY OF THE ADJUSTMENTS THAT WE'VE BEEN TALKING ABOUT. THAT'S THAT PICTURE, RIGHT? YEAH. SO THIS PINK COLUMN INCLUDES THE TAX RATE CHANGES FROM FRIDAY ALREADY. OKAY. AND IT INCLUDES THE DECREASE FROM GARAGE AND IT FACILITIES. YEAH. SO THAT ONE TIME REVENUE IS WHAT'S IN THERE BALANCING THAT RIGHT. SO WITHOUT THAT ONE TIME REVENUE WHAT WOULD THE DEFICIT FROM 120 DAYS BE? ANOTHER $450,000. SO WE'RE ONLY TAKING AND THAT'S JUST DECREASED IN SERVICE RIGHT. OR NOT DECREASE IN SERVICE. THAT'S DECREASED. THAT'S SLIMMING YOUR MARGINS. YES. SO THAT'S NOT EVEN LOOKING AT. AND THIS IS JUST TO REINSERT THE IDEA OF WHAT DAN SAID. THE CREDIT, THE BOND RATE, THEY LOOK AT YOUR 120 DAY OPERATING RESERVES. THAT'S NOT INCLUDING LOOKING AT MOVING MONEY FROM THE INTERNAL SERVICE FUND CASH RESERVE INTO THE 120 DAY, TRYING TO GET TO 130 DAY MARK. SO IT'S NOT CONSIDERING ANY ADDITIONAL. CORRECT. IT'S A IT'S BASICALLY LOOKING AT MOVING FROM INTERNAL SERVICE FUNDS ABOUT TO THE GENERAL FUND, $450,000. THAT'S WHAT THIS PROPOSED BUDGET DOES. IT DOES NOT CONTEMPLATE MOVING MORE THAN THAT. OKAY. AND SO WITH THE GAP THAT THIS RESULTS IN FROM 120 DAYS, BECAUSE WE WERE JUST BALANCING THE BUDGET HERE FOR YOU. OKAY. THAT 2.2 MILLION IS WHAT YOU'RE OFF FROM 120 DAYS. AND JUST TO ANSWER THE QUESTION, WHAT WOULD THE TAX RATE HAVE TO BE TO GET TO 120 DAYS? I'M GIVING YOU THE ANSWER TO THAT QUESTION, WHICH IS THAT HALFWAY MARK. OKAY. SO FOR FOR FOR COUNCIL SAKE SO WE CAN GET SOMETHING BACK. SOMETHING LIKE THAT. TO SEE WHAT WE CAN PUT BACK INTO OUR. 120 DAY RESERVES FROM THOSE FUNDS. IF WE LOOK AT, I THINK I'VE SAID 500,000 FOR THE GARAGE BASED ON THE LAST TEN YEAR PERIOD OF ESSENTIALLY WHAT YOU WOULD CALL A BREAK EVEN POINT, IF WE COULD LOOK AT THE CENTRAL SERVICES IN THE SAME KIND OF MANNER, GO BACK TEN YEARS, GO BACK, HOWEVER LONG AT THAT RESERVE CASH FUND BALANCE HAD BEEN BUILT UP, AND KIND OF LOOK AT THE VARIABILITY AND KEEP [04:30:03] A COMFORTABLE NUMBER THAT WE'RE ALL COMFORTABLE WITH WHERE SOME YEARS WERE UP, SOME YEARS WERE DOWN. DO YOU THINK YOU COULD BRING THAT BACK TO US AND SEE WHAT WE COULD ROLL INTO OUR 120 DAY RESERVE, SO THAT WE CAN LOOK BETTER TO THE CREDIT, SO WE CAN BUILD BACK OUR RESERVES SO THAT WE'RE READY FOR THE BUDGET YOU WANT TO SEE AT ON THE 28TH. IS THAT WHAT YOU'RE SAYING? BEFORE. BEFORE? NO, NO, NOT BEFORE THAT. OH, BEFORE. FACTORED IN WITH THE GARAGE DOWN BELOW THAT. I THINK WE BROUGHT THE GARAGE 300. YEAH, WE BROUGHT IT 300,000. BASED ON OUR ASSESSMENT OF HIS TRENDS AND DISCUSSIONS WITH DAVID, HIS OPERATIONS, THAT'S WHERE WE THOUGHT WE BROUGHT BOTH FUND BALANCES DOWN TO WHERE WE FELT COMFORTABLE, WASN'T THERE? OH, YOU HAD TO UTILIZE 400,000 IN OUTSTANDING VIEWS. SO YOU TOOK 300,000 FROM THERE FROM GARAGE AND THEN. OKAY. AND THE NET, THE WHOLE TOTAL ISN'T AGAINST THE GENERAL FUND. I MEAN, IT'S AGAINST THE VARIOUS FUNDS. SO AND THIS IS NOT A TAX FREE RECOMMENDATION. THIS IS JUST INFORMATION OKAY. THAT'S ALL WE'RE SAYING HERE. BUT SO THE BUDGET IS BASED ON THAT. NO NEW REVENUE OKAY. SO JUST TO GIVE YOU SOME IDEA OF WHAT THAT MEANS TO THE TAXPAYERS. OKAY. IN FISCAL YEAR 25, THE CURRENT YEAR THAT WE'RE IN RIGHT NOW, THE AVERAGE TAXABLE VALUE WAS $277,000. AND THE AT THE CURRENT RATE, THAT AVERAGE HOMEOWNER PAID $1,136 IN PROPERTY TAXES TO THE CITY OF GALVESTON IN FISCAL YEAR 26. AND I KNOW IT SAYS TAX YEAR 24. TAX YEAR 25. I KNOW IT'S CONFUSING, BUT IT'S FISCAL YEAR 26 FOR THE 25, RIGHT? THE AVERAGE TAXABLE VALUE GOES UP TO $295,000. AND USING THE NO NEW REVENUE RATE OF THE 408 687, THE TAXES INCREASE FOR YOUR AVERAGE HOMEOWNER BY $73 A YEAR. OKAY, SO LESS THAN FIVE $6 A MONTH. RIGHT. IF YOU WERE TO CHOOSE TO INCREASE TO THE HALFWAY RATE. JUST FOR GIGGLES. I'M TELLING YOU, THAT'S AN ADDITIONAL $59 PER HOUSEHOLD. SO THE TOTAL INCREASE WOULD BE $132 A YEAR PER HOUSEHOLD AT THAT AVERAGE RATE. IT'S NOT THE RECOMMENDATION. I'M JUST GIVING YOU NUMBERS BECAUSE YOU WOULD ASK IF I DIDN'T HAVE IT. SO THAT'S THAT'S GOING TO WHAT TAX WAS. SO THAT'S THE DIFFERENCE BETWEEN THE NO NEW REVENUE, WHICH IS WHAT YOUR BUDGET IS BASED ON. AND THE HALFWAY TAX RATE OKAY. IT'S AN INK. YES. IT'S. NO. THE FOUR. YEAH. THE 4287. YES. THAT'S CORRECT. OKAY. SO WE'VE DISCUSSED ALL THE THINGS THAT ARE IN THIS BUDGET THAT HAVE INCREASED EXPENDITURES. I DON'T THINK I WANT TO GO INTO THE DETAIL UNLESS COUNSEL IS INTERESTED IN ME REPEATING MYSELF ON THESE ITEMS, BUT THESE ARE THE ITEMS THAT WERE PRESENTED TO YOU AT THE LAST MEETING. SO CBA, EMS, ANIMAL CONTROL, HEALTH INSURANCE, SEPARATION FUND, INFRASTRUCTURE AND DEBT INCREASES WHEN REVENUE INCREASES AND THERE'S NO CIVILIAN INCREASE. CAN YOU GO BACK, PLEASE? I'M SORRY. I'M ON THE HEALTH INSURANCE. WE'RE A SELF-FUNDED PROGRAM, RIGHT? THAT'S CORRECT. AND JUST FOR THE GENERAL PUBLIC. PUBLIC? OUR STAFF PAYS FOR THEMSELVES OR OUR STAFF. SO IT'S PAID FOR. THERE IS A PREMIUM THAT EVERY EMPLOYEE PAYS THAT IS LIMITED BY THE COLLECTIVE BARGAINING CONTRACTS. SO POLICE AND FIRE CONTRACTS HAVE A CAP ON WHAT THAT SINGLE PERSON PREMIUM CAN BE. AND SO THAT IS WHAT THE SINGLE PREMIUM PERSON PREMIUM IS FOR ALL EMPLOYEES. IT'S $75. WE CAN'T INCREASE THAT. WHEN YOU HAVE FAMILY ON YOUR PLAN AND THEN THE COST GOES UP OBVIOUSLY ANNUALLY OR NO MONTHLY. MONTHLY. YES. SO LET ME. SO YOU DON'T HAVE TO WORRY ABOUT KEEP GOING. SO IF WE BREAK DOWN. SO I WENT THROUGH CERTAIN DEPARTMENTS, LIKE JUST DEPARTMENTS. I SOLD HEALTH INSURANCE AND CAME IN ON A COLLEGE KIND OF THING. SO I WAS LOOKING AT THAT IN A SIMPLE WAY. YOU KNOW, WE'RE SPENDING ANYWHERE FROM 11 TO 1400 HOURS PER STAFF MEMBER. THAT IS CORRECT. THAT'S CORRECT. AND THEIR BENEFITS. AND I GUESS JUST AS FAR AS TO REASON FOR THAT, WHAT YOU KNOW, WHAT IS WHAT IS SOME REASONING BEHIND THAT THAT WE CAN SHARE WITH THE PUBLIC AS TO WHY THOSE COSTS ARE SO MUCH WITH SELF-FUNDED, WHETHER IT'S A TERMINAL ILL OR WHETHER IT'S A. SO YEAH. SO WHEN WE'RE SELF-FUNDED, THAT MEANS WE'RE PAYING ALL THE COSTS, RIGHT. AND SO WE WHEN THE COSTS INCREASE, THE CITY HAS TO BEAR THOSE COSTS. [04:35:04] THAT'S WHAT THE HEALTH INSURANCE FUND DOES. WE CALCULATE BASED ON WHAT OUR CONSULTANTS TELL US, THE INCREASES ARE PROJECTED TO BE BASED ON TRENDS BOTH EXTERNAL TO GALVESTON AND INTERNAL. TO GALVESTON THAT COST PER PARTICIPANT THOSE EXPENSES BASED ON ACTUAL. THE YEAR BEFORE. ABSOLUTELY. OKAY. SO THAT MEANS LIKE IF A PERSON WENT DOWN AND THEY GOT A KNEE REPLACEMENT OR A SHOULDER REPLACEMENT. THEY PAY THEIR COPAY AND 20% WE'RE PAYING THE DIFFERENCE. YES. OKAY. AND SO THAT FOR AN 80%, 14 OR $17 MILLION, I FORGET WHAT $13 MILLION IS ABOUT, WHAT IT AVERAGES ANNUALLY. AND THEN THERE'S AN ADMINISTRATION COST BY THE CARRIER. RIGHT. SO YEAH, IT'S MINIMAL FOR THE TPA. YEAH. YOU KNOW, WE BID THIS OUT, COUNCIL MEMBER. AND I DON'T KNOW IF YOU HAVE THAT WE CAN PROVIDE YOU THE LAST BID PACKAGE. BUT SELF ADMINISTERING THE PLAN WAS BY FAR LESS EXPENSIVE TO THE CITY THAN GOING OUT AND GETTING CARRIER. AND WE CAN GIVE YOU THAT FOR A BASIS OF A BACKGROUND. I DON'T THINK YOU WERE ON COUNCIL WHEN WE BID IT LAST, BUT THAT MAY BE HELPFUL TO YOU. AND IN SEEING THAT WE DID THAT. I KNOW YOU KNOW. SOME PEOPLE SAY IT WASN'T THE BEST DECISION. SOME, YOU KNOW, OTHERS SAY IT WAS A GOOD DECISION. BUT, YOU KNOW, WHILE AT THE SCHOOL BOARD, WE WENT TO TEARS AS THERE BEEN A COMPARISON OF SERVICES OFFERED AND AND WHAT WE WOULD SAVE ON A PROGRAM LIKE THAT. SO WE WOULD PUT IT NEXT TIME IT'S UP FOR TO BE BID AGAIN, WE WOULD DO THE SAME THING AND WE WOULD DO THAT COST COMPARISON. I DON'T KNOW WHO BID ON THE PLAN LAST TIME BECAUSE I WAS NOT HERE, BUT AT THE TIME THE DECISION WAS MADE THAT THE LEAST EXPENSIVE COST OF GALVESTON, TEXAS WAS ALSO A STATE SUBSIDIZED PLAN, AND WE'RE NOT ALLOWED TO GET INTO THOSE. THERE ARE SOME POOL PLANS THAT WE CAN'T GET INTO TRS BECAUSE THAT'S RELATED TO THE SCHOOLS, RIGHT? WE WOULD. HTML IS THE MUNICIPAL VERSION OF THAT. AND WE COULD ALSO TRS BECAUSE IT'S DISD. I'M SORRY HTML IT WOULD BE HTML. YEAH, THAT IS WHAT WOULD BE AVAILABLE TO US. THAT'S COMPARABLE. AND WHEN YOU BID A PLAN HOPEFULLY THEY WOULD ALSO GIVE US A BID IN ADDITION TO PRIVATE CARRIERS. AND THEN WE WOULD LOOK AT THE SELF-FUNDED OPTION. SO I THINK THAT'S PROBABLY THE PROCESS THAT WAS CARRIED OUT BEFORE. AND COUNSEL WOULD BE A PART OF THAT. WAS THAT THE PROCESS? AND I GUESS I'LL JUST BID TO COUNCIL MEMBER I DON'T REMEMBER WHO I DON'T REMEMBER, BUT THAT IS WHEN WE GO THROUGH A BIDDING PROCESS AND WE BRING ALL THAT TO COUNCIL AND THE DECISIONS MADE TO GO TO A POOL. SO THAT MONEY'S THAT'S KIND OF LIKE NEIL AND JILL OUT OF THE WALL SOMETIMES, BECAUSE YOU'RE GETTING THROWN INTO THE POT WITH EVERYBODY'S FARM AND EVERYBODY'S POLICEMAN OR ANYTHING LIKE THAT. SO I MEAN, IT JUST DEPENDS, BUT I DON'T REMEMBER THAT BEING PART OF IT. THAT WOULD BE INTERESTING. I GUESS. I WAS JUST VERY I COULDN'T I WAS FLOORED BY THE AMOUNT THAT WE PAID PER STAFF MEMBER. IT'S VERY EXPENSIVE. IT'S VERY EXPENSIVE. WE HAVE ALEX AND MARIE. SO WHEN I WAS GOING THROUGH AND THIS IS IT'S I GUESS THAT'S THE HEALTH AND HEALTH AND LIFE INSURANCE OR THE INTERNAL SERVICE FUNDS. WHAT WAS I HAD A QUESTION ABOUT REGARDING THAT WAS AS IT SHOWS A $12 MILLION FUND BALANCE. BUT WHEN YOU GO TO THE AQUIFERS, IT SAYS. NEGATIVE THREE. CAN YOU? WHY IS THAT SO? YEAH. SO ESSENTIALLY, WHY WOULD THE FUND BALANCE BE HIGHER ON THE BUDGET THAN IT WOULD BE. SO THAT'S HOW MUCH CASH WE HAVE SITTING THERE. BUT THE WAY THE AQUIFER ASSETS AND ASSETS LIKE 5 MILLION OR LAST YEAR WAS LIKE 5 MILLION CASH AND THEN THAT WAS. SO THE PUBLIC IS AWARE TOO. WAS IT OPB? IT'S OUR OP ED. SO THEIR POST EMPLOYMENT BENEFITS YOU WERE REQUIRED BY GAS BA 7376 OR 73 AND 2017 TO LIST THE LONG TERM LIABILITIES, NOT JUST IN SHORT TERM LIABILITIES. AND WE'VE BEEN PAYING THAT DOWN A LOT. SO ONCE WE GET THAT LIABILITY COMPLETELY PAID OFF, SHOULD IT COME OUT CHEAPER. SO WE ARE LOOKING AND THIS IS WAY OFF TOPIC, BUT WE ARE LOOKING AT OPTIONS TO PUT SOME OF THAT FUND BALANCE INTO A TRUST. AND WHEN YOU HAVE IT IN A TRUST, THEN IT CAN LEGALLY BE USED TO OFFSET YOUR LIABILITY AND IT WILL DECREASE THAT LIABILITY. WE ARE IN THE PROCESS OF DOING THAT RIGHT NOW. SO JUST FOR MY MY SAKE, WHY WOULD IT SAY 12 MILLION ON THE BUDGET? AND THEN THE ACT FOR SAY BECAUSE THE BUDGET'S THE ACTUAL CASH AND THE ACTOR SAYS, HEY, THIS MUCH OF IT IS OFFSETTING YOUR OHP. AND SO WE'RE CONSIDERING IT AS THE OFFSET FOR THE LIABILITY. AND THIS IS HOW MUCH ISN'T BEING USED AS THE OFFSET FOR YOUR LIABILITY. SO WE'RE WHAT, PROBABLY 2 OR 3 YEARS MAY BE AWAY FROM GETTING THAT LIABILITY. TO GO INTO THIS TRUST. WE MIGHT BE ABLE TO DO IT MUCH SOONER. AND WE'RE GOING TO BET WE'RE EXPERIENCING A 20% INCREASE IN COSTS YEAR OVER YEAR. YEAH. AND I DON'T KNOW HOW THAT WILL CHANGE. DON'T KNOW WHAT IT'LL BE THIS YEAR THIS COMING YEAR THREE. SO ON THE SEPARATION PAY WE ALWAYS BUDGET A SUBSTANTIALLY HIGH AMOUNT ON THAT. [04:40:01] SO WHAT HAS THE ACTUAL VERSUS BUDGET HAS BEEN OVER THE LAST LIKE TEN YEARS? YOU KNOW, SO I CAN'T SPEAK TO THE LAST TEN YEARS AND I'M NOT SURE BECAUSE OF THE DEMOGRAPHICS. I'M GOING TO SAY THAT NICELY OF OUR EMPLOYEES. WE ARE TEN YEARS FURTHER DOWN THE ROAD THAN WE WERE TEN YEARS AGO. AND SO I DON'T NECESSARILY KNOW THAT COMPARISON, BUT WHAT I CAN TELL YOU IS LAST YEAR WE HAD TO ASK FOR A YEAR END BUDGET ADJUSTMENT IN THE SEPARATION FUND BECAUSE WE HAD MORE EXPENSES THAN WE'D ORIGINALLY MOVED. THAT MAY BE THE CASE AGAIN THIS YEAR. AND SO JUST BASED ON HOW MANY EMPLOYEES ARE SITTING IN THAT RANGE, WHERE THEY'VE GOT CLOSE TO 20 YEARS OF SERVICE, OR THEY'RE CLOSE TO 65 YEARS OF AGE, AND WE ANTICIPATE THE POTENTIAL IS THERE THAT THEY COULD RETIRE. WE FEEL LIKE THIS IS APPROPRIATE THIS YEAR. IF IT'S NOT SPENT THIS YEAR, IT'LL BE AVAILABLE FOR THEM TO RETIRE. AND THE GOOD NEWS WITH THAT, TOO, IS, IS THAT IF IT DOESN'T GET SPENT AND IT HASN'T HADN'T HAPPENED IN A LONG TIME. BUT IF IT DOESN'T GET SPENT, WE'RE BELOW 100. WE'LL 120 DAYS IN OUR FUNDS OUT. SO THAT WOULD DROP. THAT WOULD JUST ONLY SERVE TO HELP RECOUP IN YOUR FUND BALANCE. IF WE WERE SITTING AT 120 DAYS. THAT'D BE ONE OF THE ONES I'D BE WILLING TO TAKE A LITTLE BIT MORE RISK WITH. BUT I THINK THAT SHEILA'S PRETTY MUCH SPOT ON WITH IT, GIVEN WHAT WE'RE LOOKING AT NEXT YEAR, BECAUSE I KNOW THAT WE YEARS AGO PUT IN LIMITATIONS ON WHAT COULD BE CARRIED FORWARD AND SO FORTH, SO SO THAT THOSE CALCULATIONS ARE BASED ON THE ACCRUALS THAT ARE PERMITTED IN OUR PERSONNEL POLICY. SO IT'S TIED TO SPECIFICALLY THOSE AND IN THE LABOR CONTEXT. LET'S ENTERTAIN A FEW MORE QUESTIONS AND THEN LET'S HAVE SHEILA FINISH THIS PRESENTATION. I DO HAVE SOME IMPORTANT THINGS AT THE END HERE. SO YEAH. SO ONE ONE THING THAT I'VE NOTICED, AND IT'S BEEN KIND OF A LONGER TERM THING AND I WANT THIS IS A MANAGEMENT THING THAT SHOULD BE BROUGHT DOWN TO THE PEOPLE DRIVING VEHICLES. THERE HAS BEEN A LOT OF ACCIDENTS AND WRECKS, AND THAT'S ONE THING I NOTICED IN THE GARAGE IS BUDGET GOING UP IS THE COST OF INSURANCE. YEP. I REALLY THINK WE NEED TO BE COGNIZANT OF WRECKING VEHICLES, AND THAT'S SOMETHING THAT I WOULD LIKE BRIAN TO PAY ATTENTION TO. AND UNFORTUNATELY, A LOT OF THE ACCIDENTS ARE OCCURRING IN CIVIL SERVICE AREAS, SO IT MAKES IT VERY HARD TO ADMINISTER DISCIPLINE, BUT THE CHIEF IS ON TOP OF IT. IT'S IT'S I UNDERSTAND THAT AND IT'S KIND OF ACROSS THE BOARD TOO. THEY ROLL THE MOST MILES. PUTTING A BRAND NEW TRUCK UP A POLE DOESN'T HELP. OR ON TELEPHONE LINES TO NOT POINTING FINGERS, BUT WE NEED TO BE A LITTLE MORE, I THINK, RESPONSIBLE IN TERMS OF THAT. THE TRUCK WENT RIGHT BACK INTO SERVICE, AND THEN I GUESS WE'LL LET JULIA FINISH AND FINISH AT THE END. OKAY, SO I'M GOING TO SKIP PAST THESE SLIDES BECAUSE WE'VE TALKED ABOUT THIS AND WE KNOW THE SPLITS ON REVENUE AND CATEGORY OF EXPENSE AND BUDGET. THIS IS THE SLIDE THAT'S GOING TO SHOW YOU. YOU SAW THIS IN THE FIRST PRESENTATION. WHAT WERE THE INCREASES THIS YEAR. AND THAT PINK SECTION IS WHERE WE'RE BUYING DOWN THE COST INCREASES WITH THE CENTRAL SERVICES AND GARAGE TRUE UPS. OKAY. THOSE ARE THE AMOUNTS ASSOCIATED WITH THAT. IF YOU HAVE QUESTIONS, I'M HAPPY TO ANSWER THEM. BUT I THINK WE'VE TALKED ABOUT CAPITAL. WHAT I WANT TO GET TO IS SPECIAL REVENUE. I PROMISED EVERYONE THAT I WOULD BRING YOU A PRESENTATION OF WHAT PARKS IS GOING TO LOOK LIKE. THIS IS THE WAY WE HAVE A BUDGETED. THIS WILL LIKELY SHIFT A LITTLE IN THE NEXT YEAR OR TWO, AS WE FIGURE OUT WHAT'S WORKING AND WHAT'S NOT. BUT ESSENTIALLY IN SPECIAL REVENUE FUND, WE HAD A FUND CALLED REVENUE PRODUCING PARKS, AND WE HAVE UTILIZED THAT FUND TO KIND OF BRING EVERYTHING TOGETHER. THIS IS TRYING TO GET TO THAT SIMPLICITY. YOU WERE TALKING ABOUT COUNCIL MEMBER RAWLINS. WE'RE TRYING TO PUT IT ALL IN ONE PLACE SO YOU CAN SEE IT HAPPENING. IN COORDINATION, THERE ARE THINGS THAT ARE IMPORTANT TO CONSIDER. LIKE THERE ARE BEACH USER FEES AS PART OF WHAT OUR REVENUE ARE, AND THEY CAN ONLY BE USED IN THOSE BEACH PARKS. RIGHT. AND WE'RE ACCOUNTING FOR THAT WITH THE WAY WE ARE CODING ACTIVITIES THAT ARE OCCURRING. BUT FROM FISCAL YEAR 25, YOU'RE SEEING THAT ESTIMATED COST OF 2.6 MILLION. THE BUDGETED HAD BEEN 4.4 BECAUSE THIS IS A SPECIAL REVENUE FUND AND EVERYTHING WAS BUDGETED. YOU'RE SEEING THAT INCREASE TO 8.2 MILLION. AND THAT'S A RESULT OF SEAWALL AND SEAWALL URBAN AND SEAWOLF PARKS COMING ONTO THE CITY'S BUDGET. SO I JUST WANTED TO I CAN ANSWER QUESTIONS ON THIS, BUT I JUST WANT TO BRING TO YOUR ATTENTION WHERE YOU'RE GOING TO FIND IT. IT'S ON PAGES SF 30 THROUGH 45 IN YOUR BUDGET. OKAY. WELL, LIKE IT'S A LOT AND I WANTED TO PUSH THROUGH IT. SO WE'VE TALKED ABOUT THE HOT FUNDS. I DON'T REALLY WANT TO GET INTO THE WEEDS THERE, BUT IT IS ON PAGES 60 TO 69. IF YOU WANT TO REVIEW THAT IN YOUR BUDGET. AND THE SHORT TERM REGULATION FUND, WHICH IS ALSO INCREASING THIS YEAR, [04:45:04] YEAR OVER YEAR, BECAUSE WE'RE TAKING OVER THAT REGISTRATION AND COLLECTION FUNCTION, AND THAT'S WHERE THOSE COSTS ARE GOING TO BE, AS WELL AS INCREASED COSTS TO CITY MARSHAL. AND THIS FUND THAT'S ON SF 28. SO YOU'VE GOT YOUR POWERPOINT. YOU CAN ASK ME QUESTIONS LATER. I HAVE A FEW THINGS WHEN YOU'RE OH, SO THAT IS THE BIG THING I WANT TO HIT BEFORE WE GO ANY FURTHER, BECAUSE WE'VE GOT STUFF ON THE AGENDA RELATED TO THIS THAT'S REALLY IMPORTANT. THE TOP BAR GRAPH SHOWS YOU WHAT OUR CURRENT EXISTING DEBT IS. THAT'S GENERAL OBLIGATION DEBT. THE BOTTOM IS YOUR DRAFT AT THE $60 MILLION IS BEING PROPOSED FOR THE ELECTION. AND YOU'RE SEEING THAT BRIGHT LIKE SKY BLUE COLOR IS THE FIRST TRANCHE OF 30 MILLION, AND THE PINK COLOR IS THE SECOND TRANCHE OF $30 MILLION. AS THE ISSUANCE, WE'RE GUESSING WE'D ISSUE 30 MILLION. AND THEN THREE YEARS LATER, ANOTHER 30 MILLION. NOW, THIS IS THE IMPORTANT PART. THE ORDINANCE LANGUAGE CLEARLY STATES THIS IS A TAX INCREASE. OKAY. BUT WE WANT COUNCIL TO UNDERSTAND WHAT THIS REALLY MEANS AS WE MOVE FORWARD. THE NO NEW REVENUE RATE, AS I'VE SAID, IS THE SAME REVENUE ON THE SAME PROPERTIES YEAR OVER YEAR. TOTAL. OKAY. THE WAY THE NEW REVENUE WAS CALCULATED, THEY DON'T ALLOW YOU TO CONSIDER THE DEBT SEPARATE FROM MAINTENANCE AND OPERATION. IT'S THE TOTAL TAX RATE. THE REVENUE PIE DOES NOT GET BIGGER WHEN YOU USE A NO NEW REVENUE RATE. SO I'M SHOWING YOU YEAR OVER YEAR WHAT IT WOULD LOOK LIKE IN A PRIOR YEAR. OUR DEBT WOULD BE 9%. AND THESE ARE THE PERCENTS THAT WE CURRENTLY HAVE. DEBT RATE IS NINE BRINGING YOU 9% OF YOUR REVENUE. LIBRARY IS GETTING 12%. AND MAINTENANCE AND OPERATIONS GET 79%. OKAY. WHEN THE DEBT INCREASES. AND THIS WOULD APPROXIMATELY BE THE INCREASE IN YOUR DEBT. SO 4% LET'S SAY. THEN LIBRARY STAYS THE SAME BECAUSE IT'S FIXED, RELATIVELY SPEAKING. AND YOU TAKE AWAY FROM YOUR MAINTENANCE AND OPERATIONS PIECE OF THE PIE WITH THE NO NEW REVENUE RATE. OKAY. BECAUSE YOUR PIE CANNOT GET BIGGER. AND THAT INCREASE IN DEBT HAS TO COME FROM SOMEWHERE. SO ONCE THE DEBT IS ISSUED AND THE OBLIGATION IS ON, THE BOOKS, COUNCIL WILL BE UNABLE TO GO TO THE NO NEW REVENUE RATE WITHOUT CUTTING MAINTENANCE AND OPERATIONS BY THE SAME PORTION THAT YOU'RE INCREASING DEBT. SO ESSENTIALLY WHAT HAPPENS IS, ANY RATE, ABOVE THE NO NEW REVENUE RATE ALLOWS YOU TO CONSIDER THE DEBT PORTION AND THE MAINTENANCE OPERATION PORTION SEPARATELY. AND THE PIE CAN GET BIGGER TO ACCOMMODATE BOTH. BUT I WANT TO BE VERY CLEAR THAT SHOULD THE VOTERS VOTE TO FIX FIXED STREETS AND TO BUILD A FIRE STATION. THE DEBT OBLIGATION COST ASSOCIATED WITH THAT WOULD MAKE IT INCREDIBLY PROHIBITIVE FOR US TO GO TO THE NO NEW REVENUE RATE AFTER THAT. AND THIS IS JUST SO. IN ALL FAIRNESS, I'VE EXPLAINED HOW IT WORKS, AND I'M HAPPY TO ANSWER QUESTIONS. WELL, A QUESTION ON THAT. I'M GOING TO PUT IT IN MY LANGUAGE IF IF WE APPROVE THE VOTERS APPROVE THESE TWO BONDS, IF WE TAKE THEM FORWARD. AND IN THE FUTURE WHEN THE TRIGGER IS PULLED ON THOSE, WE WOULD HAVE THE CHOICE OF EITHER TAKING MONEY FROM THE DEBT SERVICE, USING MORE OF THE DEBT INFRASTRUCTURE FUND TO SATISFY THAT WHICH WOULD GIVE US LESS FOR INFRASTRUCTURE MAINTENANCE, OR WE WOULD HAVE TO RAISE OUR TAX RATE. YES. THERE'S TWO CAVEATS TO THAT. THE FIRST IS, I THINK WHAT YOU'RE GOING TO HEAR ON THE STREETS, OR WHAT YOU'VE HEARD ON THE STREETS, IS THAT THE MAINTENANCE AND OPERATION IS LIKE SMALLER PROJECTS. WE'RE NOT DOING ENOUGH AS IT IS. AND SO BRINGING DOWN THE AMOUNT FROM THE INFRASTRUCTURE AND DEBT SERVICE THAT'S CASH FLOWING PROJECTS WOULD DECREASE THE AMOUNT YOU HAVE TO CATCH THE LITTLE THINGS ON THE FRONT END. SO THERE'S RISK THERE. THE SECOND PIECE IS, IS THAT THE LEGISLATURE IS CONSIDERING LIMITING THE ABILITY OF USING MAINTENANCE AND OPERATIONS REVENUE TO OFFSET YOUR DEBT COSTS. SO WHILE GALVESTON HAS THIS MODEL WHERE IT'S BEEN DONE HISTORICALLY AND WE'VE PLANNED FOR THAT, IT'S POSSIBLE THE STATE LEGISLATURE CAN MAKE CHANGES THAT WOULD NOT ALLOW US TO DO THAT IN THE FUTURE. I WOULD SAY PROBABLE. I AGREE WITH ALEX ON THAT. YEAH. A QUESTION ON THE SHORT TERM RENTAL REGISTRATION FUND. YES. JUST CLARIFICATION ON THAT. WE SAW THE WHAT'S IN THE BUDGET BOOK ON THAT. IT HAS THIS DOWN ENDING FUND BALANCE AT THE END OF 26 OF ZERO, BUT WE REALLY HAVE TWO 2,000,006 62043. CORRECT. THAT IS THERE. SO THAT COUNCIL CAN SPEND IT IF THEY WOULD LIKE IT. THAT'S CORRECT. [04:50:01] I JUST WANT IT. IF WE DON'T BUDGET A FUND BALANCE, YOU CAN'T SPEND THE FUND BALANCE. YOU'VE GOT THAT BUDGETED AS AN EXPENDITURE. YES. OKAY. AND IT'S NOT ALLOCATED TO ANY PURPOSE. COUNCIL WOULD HAVE TO CHOOSE THE ALLOCATION BUT IT'S AVAILABLE FOR COUNCIL HAS TO COME TO COUNCIL. BUT ONE OF THE THINGS LIKE IN A SLIDE LIKE THIS THAT IT IS NOT ACCOUNTED FOR IS MAKING FOR EFFICIENCIES AND THE WAY THAT DEPARTMENTS ARE RUN. NO DOUBT THERE ARE ALWAYS VARIABLES THAT YOU CAN'T CAPTURE. I JUST WANTED TO REALLY SHOW THAT THE NO NEW REVENUE LIMITS THE AMOUNT OF PROPERTY TAX REVENUE AVAILABLE FOR CERTAIN PURPOSES. AND THAT IS NOT BECAUSE I THINK WE HAVE TO LOOK AT EFFICIENCIES. I MEAN THAT ESPECIALLY WHEN WE'RE LOOKING AT THE VALUE OF NEW PROPERTIES. I MEAN, JUST AS AN EXAMPLE, I GOT A CALL A DAY AGO ABOUT SOMEBODY PUT IN FOR A STORMWATER TOP $8,000.98 DAYS AGO. THAT'S RIGHT. THEY STILL HAVEN'T GOTTEN THAT. WELL, THEY HAVE AN OPTION TO TO DO A PRIVATE SERVICE, WHICH IS REMEMBER, WE'RE SUBSIDIZING IT $8,000. THE OTHER RATEPAYERS ARE STILL SUBSIDIZING. THAT'S NOT COVERING THE COST. THERE'S YOU AND I WHO PAY WATER RATES ARE SUBSIDIZING THAT TAP COST. AND THEY HAVE THE ABILITY TO GET A PRIVATE SERVICE IN THERE TO DO IT. MOST WOULD RATHER WAIT BECAUSE THE PRIVATE SERVICE IS SUBSTANTIALLY MORE. WELL, I'M JUST SAYING, I THINK THE ONE THING WE AREN'T DISCUSSING IS EFFICIENCIES. JUST A BIT DIFFERENT MAYBE TO KIND OF LOOK AT IT THE OTHER WAY. LET'S TALK ABOUT THE LEVEL OF SERVICE THAT WE'RE WANTING TO PROVIDE TO OUR RESIDENTS. IF WE HAVE THE ABILITY TO IMPROVE THAT TURNAROUND FROM 90 DAYS TO SAY, 60 DAYS, SHOULDN'T WE LOOK AT THAT AND SHOULDN'T WE FUND THAT TYPE OF QUALITY OF SERVICE? YOU WOULDN'T FUND IT. YOU WOULD INCREASE THE FEE TO BE APPROPRIATE TO DO THAT. THERE YOU GO. I MEAN, THAT'S ONE WAY YOU CAN. I KNOW, BUT THAT'S SOMETHING ELSE. MY POINT IS WE HAVE TO LOOK AT EFFICIENCIES AS WELL. WELL THAT'S NOT. IT'S MORE OF AN IMPACT FEE RATHER THAN AN EFFICIENCY. BUT I'M TALKING ACROSS THE BOARD. SURE. YEAH. ALL RIGHT. ALEX, I'VE GOT BECAUSE WE I PUT IT ON THE AGENDA. SO THIS IS THE PARKS DEPARTMENT MAINTENANCE OF CITY OWNED AND NON CITY OWNED ASSETS. I WAS I'M WORKING WITH AN INDIVIDUAL WHO SAW THE CITY CUT AND BURN IT, AND I ASKED THE QUESTION TO JANELLE. DO WE HAVE AN INTERLOCAL AGREEMENT? DO WE GET REIMBURSED FOR THAT? I FEEL LIKE THAT'S ESSENTIALLY DOUBLE TAXING OF THE RESIDENT OR THE RESIDENTS. MY TAX BILL, YOUR TAX BILL. ALL OUR TAX BILLS SAY CITY OF GALVESTON SCHOOL DISTRICT. IF LIKE A COMPREHENSIVE LIST OF WHAT WE CUT AT CITY OWNED, WHAT WE CUT, THAT'S NON CITY OWNED. AND I DON'T KNOW IF YOU CAN MEASURE IT BY TIME, BUT PEOPLE IN TIME IS THE BIGGEST RESOURCE THAT WE Y'ALL MANAGE AND THAT WE FUND. AND IF WE'RE NOT GETTING REIMBURSED FOR THAT TIME FOR OTHER MUNICIPALITIES OR TAXING AUTHORITIES OR ANYBODY, AND IT'S JUST THAT'S A DRAIN. THAT'S A DRAIN ON OUR ON OUR BARNETT SPECIFICALLY WHEN WE WE NEEDED RUGBY AND SOCCER FIELDS. SO WE IMPROVED THAT AREA ON THE WEST SIDE. WE DON'T OWN THAT LIKE WE DO ON THE EAST SIDE ON THE ON THE EAST SIDE OF THE SCHOOL. BUT WE MAINTAIN IT FOR THEM. SO, SO OUR KIDS, IT'S NOT JUST GEARED KIDS THAT USE THAT SO OTHER PEOPLE CAN USE IT AND IT BECOMES PUBLIC SPACE. THAT WAS THE AGREEMENT THAT WAS STRUCK. WAY BACK WHEN. IS THAT THE ONLY ONE? NO. TAKE THAT RIGHT AWAY. TAKE IT OUT RIGHT AWAY IS ANOTHER ONE. WE MOW THOSE JUST BECAUSE, I MEAN OTHERWISE, IT WOULD LOOK LIKE HELL COMING IN TO GALVESTON IF WE DIDN'T KNOW. YEAH, I JUST AM CURIOUS. WE MOW. WE USED TO MOW AROUND ALAMO, AND WHEN WE WERE CLOSING THE SOCCER FIELDS, THEY ALLOWED US TO USE IT OVER THERE. AND THE GRASS WAS SO HIGH, WE WENT AHEAD AND WENT OVER THERE AND CUT IT BECAUSE JUST, YOU KNOW, WHEN IT GETS TO BE SUMMERTIME. AND I REMEMBER THIS WHEN I WAS ON THE CATHOLIC SCHOOL BOARD, YOU LET THE GRASS GROW A LITTLE BIT, SAVE SOME MONEY. BUT WE'RE USING THOSE FIELDS AND THEY LET US USE THEM LIKE THEY LET US USE BEHIND PARKER FOR LITTLE LEAGUE PRACTICE AND THINGS. SO WE HELP OUT BY TRYING TO MOW THOSE AS BEST. HERE'S THE HERE'S THE TWO THE TWO THINGS THAT ONE THAT GOT BROUGHT UP LAST MEETING, WHICH WAS THE 10% FOR THE FUEL CHARGES. YOU KNOW I'M OKAY WITH AND I THINK EVERYBODY IS OKAY WITH BECAUSE WE SEEM TO BE TAKING THE BRUNT OF A LOT OF THESE FEE INCREASES FROM COUNTY FROM EVERYWHERE ELSE. WE'RE WE'RE EATING THE, THE FEE INCREASES. SO I WOULD LIKE TO SEE DAVID MOVE TO 15% FOR OUTSIDE FUEL CHARGES. AND THAT 15% CAN BE EARMARKED AND ALLOCATED TOWARDS THE GARAGE IMPROVEMENTS. I DON'T IT'S NOT THAT I DON'T WANT TO PAY FOR OUR OWN GARAGE IMPROVEMENTS, [04:55:01] BUT WE CAN MAKE OTHER MUNICIPALITIES PAY FOR THE IMPROVEMENTS BECAUSE IT'S A SERVICE THAT WE OFFER. AND IF WE CAN GET NEW TANKS, IF WE CAN GET, YOU KNOW, NEW PUMPS AND THINGS LIKE THAT, I THINK IT SHOULD BE EXTERNAL, LIKE A GARAGE CAPITAL. EXACTLY. THERE'S AN ELASTICITY IN THAT PRICING, GRANTED. RIGHT. SO THERE'S ONLY SO HIGH YOU CAN GO BEFORE THEY'RE GOING TO GO GET IT SOMEWHERE ELSE. SO I MEAN WE CAN OKAY. WE CAN'T BANK ON THAT. SO IF WE'RE USING THAT TO OFFSET THE COST OF THE PUMPS, THE COST OF THE STORES, THE ENVIRONMENTAL ISSUES. WE HAVE TO KEEP THE TANKS CLEAN AND TEST THE SOIL AND MAKE IMPROVEMENTS. ALL OF THOSE ARE BEING OFFSET BY REVENUE THAT WE GET FROM SELLING THE SERVICE OF OUR FUELING STATION. SO IF WE RAISE THE PRICE TO THE POINT WHERE THAT WENT AWAY, WE'D HAVE TO FUND THAT FULL COST. SO THERE'S SOME ELASTICITY IN THAT. YOU CAN'T PRICE TOO MUCH. WELL, I MEAN, I NEVER THOUGHT I'D BE IN THE MUNICIPAL FUELING BUSINESS, BUT I GUESS WE ALL ARE. WHATEVER. I THINK WHATEVER IS HIGHER THAN WHAT WE'RE CHARGING NOW, JUST TO HAVE THE UNDERSTANDING. HEY, WE HAVE COSTS TO PAY, TOO. YOU'RE KICKING US WITH COST. WE NEED TO WHAT WE'LL DO, NOT TO OUT PRICES OUT OF THE MARKET. BUT LET'S. LET'S NOT JUST THROW A NUMBER. LET US DO SOME ANALYSIS. AND AFTER WE GET THE BUDGET PASSED, WE'LL BRING IT BACK TO YOU GUYS TO CONSIDER. BECAUSE THE MINUTE WE DO IT, YOU'RE PROBABLY GOING TO HEAR FROM COUNTY COMMISSIONERS OR OR JAMAICA BEACH PEOPLE OR THE SCHOOL DISTRICT DOESN'T FEEL WITH US, BUT OTHERS. SO DON'T CALL THE COUNTY COMMISSIONERS WHEN THE MS PRICE GOES UP. SO MAYBE THEY CAN BE A LITTLE UNDERSTANDING. AND IT DID GO UP. BUT THE OTHER THING TOO IS THE YOU KNOW, I UNDERSTAND CUTTING THE RIGHTS OF WAYS FOR TEXT. I UNDERSTAND ALL OF THESE THINGS. AND I KNOW IT'S A IT'S TO BEAUTIFY AND SERVICE. BUT IF WE'RE NOT CAPTURING THE COST BACK, WE'RE EATING IT DOWN THE ROAD 100%. WE'RE EATING WE'RE EATING IT RIGHT NOW. AND WE'VE BEEN EATING IT AND, AND AND TO ME THAT'S, THAT'S THE, THAT'S THE BUT THOSE BUT THAT WAS IN RESPONSE TO CITIZENS COMPLAINING ABOUT THE WAY I LOOK. AND REMEMBER TEXTILE IS GOING TO CUT IT TWICE A YEAR AND SOMETIMES TWICE AS THEY GO UP THIS WAY AND THEY COME BACK THAT WAY, BUT THEY'RE GOING TO CUT IT TWICE A YEAR WHERE THERE NEEDS IT OR NOT. AND WE DIDN'T. AND I THINK 305 IS A GOOD EXAMPLE OF WHAT IT'LL LOOK LIKE IF WE LET TEX DOT DO IT. AS A MATTER OF FACT, WE GET WE GOT BRAD REQUEST TO MOW 305 IN ADDITION TO WHAT WE'RE DOING. SO WE DO THAT AS WE TRY TO ACCOMMODATE THE CITIZEN REQUEST AS BEST WE CAN, BUT WE'VE ACTUALLY HIT OUR LIMIT ON THAT. I MEAN, WE CAN'T WE JUST CAN'T TAKE ON ANYMORE. AND WE JUST TOOK ON, WELL, WHATEVER WE HAVE TO TAKE ON ON THAT. YOU KNOW, ESPECIALLY WITH THE SCHOOL DISTRICT, I KNOW WE USE IT. THEY USE IT. WE NEED TO BE REIMBURSED FOR SOME OF OUR SERVICE TO THEIR FACILITIES. I REALLY DO BELIEVE THAT IT'S GREAT FOR THEM. THEY DON'T. I MEAN, I DON'T KNOW IF THEY PAY ANYTHING FOR US TO CUT THEIR GRASS, BUT THAT'S. NO. AND WE TALKED ABOUT WHEN. JERRY. TO ME, THAT'S A SWEET DEAL. SUPERINTENDENT WE TALKED ABOUT SHARING MOWING SERVICES BASICALLY HAVE THEM CONTRACT WITH US. BUT THE PROBLEM IS EVERYBODY DOES DOUBLE DUTY. LIKE, MY GRASS MOWERS DON'T MOW GRASS EVERY SINGLE DAY. THEY HAVE OTHER DUTIES. AND THERE WASN'T THERE WASN'T GOING TO BE ENOUGH ECONOMIES OF SCALE BETWEEN THE TWO OF US TO DO THAT. WE'VE DISCUSSED IT, AND I'M HAPPY TO BRING IT BACK UP WITH MADDOX MINE, THE DOG PARK AT THE AIRPORT, SCHOOL DISTRICT PROPERTY. THEY DON'T CHARGE US. SO, I MEAN, THERE'S THERE'S A LOT OF THESE TRADE OFFS THAT HAPPEN THROUGHOUT THE MANAGEMENT. MAYBE IT'S A MANAGEMENT MANAGEMENT CONVERSATION TO SAY. DOCUMENTING AND WRITING IS NEVER HARMFUL. AND TO MAKE SURE THE SCALES ARE. AND WHEN YOU SAW THEM MOWING BURNETT THE OTHER DAY, I CAN I'LL TAKE 100% RESPONSIBILITY FOR THAT. I WAS WALKING THE DOG THROUGH THERE AND I LOST HIM IN THE DAMN GRASS. AND I SAID, I CALLED BARBARA ON A SATURDAY. IS BARBARA HERE? YEAH. SHE'LL ATTEST TO THESE SATURDAY CALLS SHE GETS FROM ME WHEN I WALK THROUGH THE PARKS. AND I SAID, GET A CREW OVER HERE AND GET THIS MOWED. OUR LASSIE, OUR LITTLE LEAGUE FOOTBALL, AND EVERYBODY ELSE IS OVER HERE. SOMEBODY'S GOING TO GET HIT BY A SNAKE. SOMEBODY'S GOING TO GET THIS. WAS IT WAS THAT BAD? SO WE'RE USING THE I MEAN, AT SOME POINT WE'RE GOING TO GET HUNG WITH IT ONE WAY OR THE OTHER. AND I UNDERSTAND WHERE YOU'RE COMING FROM. I'M JUST TRYING TO I'M JUST TRYING TO TELL YOU WHY WE WERE CUTTING THE FIELDS WHERE WE WEREN'T CUTTING WHAT BRIAN EXPERIENCE WAS. THERE WAS A LOT OF HIGH WEEDS BECAUSE THEY HAD EQUIPMENT STORED OUT THERE AND OLD FENCE STORED OUT THERE, AND NOBODY WAS WEEDING. OR COULD YOU SEE THE BLEACHERS? THE GRASS HAD GROWN UP TO THE BOTTOM OF THE BLEACHERS. SO WE GOT IT. OH! GET IT? YES, MA'AM. THE NUMBERS ARE YOU LOOKING AT IT? AND I CAN UNDERSTAND. GIS IN THE CITY BARTERING. YOU KNOW, YOU DO THIS. YOU DO THAT. ARE WE LOOKING AT MAJOR NUMBERS FOR CUTTING? IT'S PROBABLY NOT. I WOULD SAY THE TEX DOT EXPENSES ARE PROBABLY FAR EXCEED WHAT WE'RE DOING FOR GIS. BECAUSE IF THE GSD, OUR KIDS ARE USING IT, RIGHT. I UNDERSTAND THAT. I WAS JUST ASKING, COULD YOU CALCULATE THE MOUNTAIN? EVERY AREA, BECAUSE I PERSONALLY THINK WE SHOULD GO INTO. WE SHOULD GO TO A TEXT DOT AND SAY YOU SHOULD BE PAYING THIS. WHAT TEX DOT OFFERED US WAS TO PAY US WHAT THEY WERE PAYING THE MO, WHICH WOULDN'T EVEN PAY FOR THE FUEL IN OUR MOWER. [05:00:02] THAT'S ALL RIGHT. ALL RIGHT. ON THE TEXT I SAID, WE'RE ALREADY TAKING CARE OF IT. WE DON'T NEED TO PAY IT. THANK YOU. FIRST OF ALL, ON THE BUDGET. I, I DON'T I DON'T WANT TO LEAVE THIS SUBJECT HERE. I KNOW BRIAN WANTS TO MAKE SOME STATEMENTS HERE. ANY FURTHER QUESTIONS ON THE BUDGET COUNCIL? I'VE GOT IT. I'M GOING TO MAKE A FEW STATEMENTS ALSO, BUT I WANT BRIAN TO GO FIRST. I DON'T WANT TO LEAVE THIS TOPIC UNTIL WE LOOK AT THESE TWO BONDS. I NEED TO GET COUNCIL'S INPUT ON THESE TWO BONDS BECAUSE THEY ARE ON OUR ACTION ITEMS TODAY. SO WE'RE GOING TO HAVE TO MOVE FORWARD. ALL RIGHT. THIS IS JUST KIND OF A QUICK RECAP, BUT MY FAMILY WILL TELL YOU I'M THE GUY THAT GETS TO THE AIRPORT THREE HOURS EARLY. MY DAUGHTERS JOKE THAT WE SHOULD JUST SPEND THE NIGHT AT THE AIRPORT WHEN WE HAVE A MORNING FLIGHT, BECAUSE I GET THERE SO EARLY. SO I'M VERY CONSERVATIVE WHEN IT COMES TO TO MANAGING THINGS. AND YOU CAN SAY, I HATE FUN, BUT I WANT TO MAKE IT'S MY JOB TO, TO TO TELL YOU GUYS THE PROS AND THE CONS AND WE HAVE WE HAVE PRODUCED FOR YOU. I KNOW NO NEW REVENUE BUDGET. I'M VERY PROUD OF THAT. BUT I HAVE CONCERNS AND I WANT TO SHARE THEM WITH YOU. AND THAT'S. I'M NOT TRYING TO WOO YOUR OPINION OR CHANGE ANYTHING DIFFERENT, BUT IT'S MY JOB TO TELL YOU MY CONCERNS, BE THEY REALISTIC OR NOT. I WANT TO POINT OUT THAT WE WOULD BE WAY FURTHER BEHIND HAD WE NOT SOLD THAT AIRPORT PROPERTY THIS YEAR, AND THAT'S A BIG CONCERN TO ME. THAT WAS A ONE TERM, ONE TIME REVENUE INFUSION, AND THAT WAS A BIG REVENUE INFUSION TO US IN THE GRAND SCHEME OF THINGS. AND WE'RE PROJECTING TO BE AT 110, WE WOULD PROBABLY BE CLOSER TO WE'D BE BELOW 100 AND CLOSER TO OUR 90 DAY IF WE HADN'T SOLD THAT PROPERTY. SO I JUST WANT EVERYBODY TO KEEP THAT AT THE TOP OF THEIR MINDS, BECAUSE THIS BUDGET IS MAKING NO HEADWAY. WE'RE ACTUALLY LOSING GROUND AGAIN ON OUR. AND LET ME. FOR THE PUBLIC, THAT DOESN'T MEAN WE'RE SPENDING OUR RESERVES. WHAT THAT MEANS IS, IS THAT OUR DAILY OPERATIVE COST IS GOING UP, SO IT RESULTS IN FEWER DAYS. IT'S NOT A PERFECT METRIC. BUT IF IF DAYS ARE OUR TARGET, DAYS ARE WHAT WE'RE GOING TO MANAGE TO, AND WE'RE LOSING DAYS AND WE'RE GOING TO CONTINUE TO LOSE DAYS AND MOVING FORWARD, I DON'T SEE A BIG PATH FORWARD TO REBUILDING THOSE DAYS, ABSENT SOME OTHER EVENTS. WE WERE TOLD DURING THE PRESENTATION EARLIER THAT BRANDON DID EARLIER IN THE YEAR ABOUT OUR STREETS. I'M STILL NOT REAL COMFORTABLE WITH THE FUNDING LEVEL THAT WE'RE PUTTING INTO OUR STREETS. WE'RE DOING OUR BEST. THE BONDS WILL HELP, AND WHAT THE BONDS ARE GOING TO DO IS THE BONDS ARE GOING TO KEEP US LEVEL. AND THE GUY SHOWED US THAT WE'RE GOING TO STAY AT THE 70 PLUS PERCENT WITH BONDS IN FUTURE BUDGET YEARS. IT'S VERY IMPORTANT IN ALL THINGS BEING CONSIDERED, THAT WE REALLY LOOK AT WHAT WE'RE INVESTING IN OUR INFRASTRUCTURE HERE. WE'RE TREADING WATER, BUT WE'RE LOSING WE'RE LOSING DEPTH. SO WE NEED TO MAKE SURE. I MEAN, WE'RE GOING TO PLUG IT PRETTY HARD WITH THE WITH THE BONDS, IF THAT, IF THERE WERE SUCCESSFUL OR IF THOSE BONDS AREN'T SUCCESSFUL, WE'RE GOING TO HAVE TO REGROUP AND LOOK AT THAT. GUYS I JUST WANT TO MAKE SURE YOU KNOW THAT IN RELATION TO THE BONDS. AND I KNOW YOU ALL ARE GOING TO TALK ABOUT THEM. I JUST WANT TO BE A REALIST. IF ANYBODY IS GOING INTO THIS BOND SALE THINKING THAT WE'RE GOING TO DO THIS WITHOUT SOME FORM OF TAX INCREASE, I THINK WE NEED TO REALLY TALK ABOUT THAT, BECAUSE I DON'T THINK IT'S REALISTIC TO SAY THAT WE'RE GOING TO BE ABLE TO DO THIS WITHOUT INCREASING TAXES. THE VOTERS WILL KNOW THAT GOING INTO IT, AND IT WILL BE UP TO THEM TO APPROVE THAT. BUT I DON'T WANT ANYBODY TO HAVE THE THOUGHT THAT WE'RE GOING TO BE ABLE TO DO THIS WITHOUT INCREASING TAXES, ESPECIALLY GIVEN OUR GOALS OF TRYING TO MAINTAIN A FLAT OR EVEN NO NEW REVENUE RATE. GOING FORWARD, I THINK THAT'S IMPORTANT THAT WE CONVEY THAT. I'M A LITTLE CONCERNED ABOUT PAYING CITY STAFF. AND THIS IS ALL STAFF, NOT. I'M NOT SINGLING OUT PUBLIC SAFETY, BUT I REALLY WORRY THAT AS WE CONTINUE TO MOVE FORWARD AND GIVEN THE REVENUE CAPS IN PLACE BY THE STATE, IF WE CONTINUE TO STAY FLAT OR LOW, WE COULD VERY EASILY SLIP INTO A PAY BY REFERENDUM SITUATION. AND THAT'S CONCERNING TO ME. I DON'T WANT EVERY TIME WE WANT TO EVERY TIME WE HAVE TO HONOR A LABOR CONTRACT. AND I THINK OUR LABOR CONTRACTS ARE FINALLY VERY FAIR AND VERY JUST, I THINK WE ARE RIGHT ON THE MONEY WITH OUR LABOR CONTRACTS AND THE CIVILIANS. I'M HOPING TO STAY. STAY. YOU GUYS HAVE SHOWED GOOD, GOOD FAITH IN THAT AREA, BUT I'M REALLY CONCERNED THAT YOU'RE NOT GOING TO BE ABLE TO HIT THESE HIGH MARKS THAT ARE COMING. AND WE KNOW THEY'RE COMING BECAUSE WE ALREADY KNOW WHAT NEXT YEAR'S CONTRACTS LOOK LIKE IN OUR BENCHMARK CITIES. YOU MAY VERY WELL SHOOT PASTURE 3.5% TRYING TO DO THAT. AND WHAT THAT DOES IS THAT MOVES YOU INTO A PAY BY REFERENDUM SITUATION. THAT'S NOT A BAD THING. I'M JUST POINTING THAT OUT THAT THAT'S A POSSIBILITY THAT THAT COULD OCCUR. I'M HOPING THAT WE HAVE. I'M HOPING THAT EVERYTHING GOES REALLY WELL IN THE IN. [05:05:02] AND WE DON'T HAVE TO DO THAT. BUT IT'S A CONCERN. IT'S ON MY LIST. I HAVE A LIST OF CONCERNS THAT I DWELL OVER AND PRAY OVER EVERY NIGHT, AND THAT'S ONE OF THEM. I JUST WANT TO LET YOU KNOW THE INCREASING BENEFIT COSTS ARE A BIG CONCERN OF MINE. LET'S TALK ABOUT THE HEALTH INSURANCE. THE HEALTH INSURANCE BOARD IS STEPPING UP AND IT'S GOING TO LOOK AT IT. BUT JUST REMEMBER THAT EVERY TIME WE ADJUST BENEFITS, IT COST OUR EMPLOYEES MORE. I THINK WE HAVE A VERY GOOD HEALTH PLAN. I DON'T THINK OUR EMPLOYEES HAVE ANYTHING TO COMPLAIN ABOUT. BUT I DO THINK OVER TIME, IF PAY IS JUST ONE COMPONENT OF WHAT WE'RE DEALING WITH IN RECRUITMENT AND RETENTION, ESPECIALLY IN THE PUBLIC SAFETY AREAS. SO WE NEED TO BE VERY COGNIZANT OF THAT, THAT THESE COSTS, WE CAN ONLY MANAGE THEM SO MUCH AND THEN WE BECOME NOT COMPETITIVE. SO I WANT TO MAKE SURE THAT THAT STAYS ON EVERYBODY'S RADAR SCREENS. AND WHILE EVERYTHING IS REALLY GOOD RIGHT NOW, THE MARKETS ARE AT ALL TIME HIGHS. THEY SAY WE'RE WHEN I CAME IN HERE THE PLANS ARE PERFORMING WELL. I WOULD ARGUE THAT WITH THE EXCEPTION OF FIRE, OUR PLANS ARE NOT COMPETITIVE, SO WE NEED TO EITHER LOOK AT FURTHER INVESTING INTO OUR PLANS OR MAKING THOSE MOVES LONG TERM, AS WE'VE DISCUSSED, TO TO A STATE PLAN. BUT THAT CAN'T HAPPEN UNTIL WE GET THESE PLANS BOUGHT DOWN. AND WHILE THE MARKET IS DOING ITS PART, WE'RE NOT REALLY DOING OURS AND THAT WE COULD BE CONTRIBUTING MORE AND OR AT LEAST WE COULD BE BALANCING BENEFITS. NOW FOR RECRUITMENT FACES, IT'S A GOOD TIME TO DO IT WHEN THE MARKET'S UP. NOT A GOOD YEAR TO TALK ABOUT IT GIVEN OTHER FINANCIAL CONSTRAINTS, BUT IT'S SOMETHING YOU GUYS NEED TO KEEP ON YOUR RADAR SCREEN AS WE GO FORWARD. FOR US TO STAY COMPETITIVE AND REMEMBER, UNLIKE WITH TEAMS WHERE THEY'RE SPREADING THE RISK OVER ALL 264, ALL THE CITIES IN ALL 264 COUNTIES, WE'RE SPREADING OUR RISK OVER THIS LITTLE TINY POOL OF PEOPLE. AND THAT'S A VOLATILE PLACE TO BE. AND OUR FUNDING PLANS, WHICH ARE SOLID FOR THE VERY FIRST TIME, VERY PROUD OF THAT. DAN HAS DONE A FANTASTIC JOB WITH THAT. BUT WE'RE WE'RE ON THE HOOK. IF THERE'S A SWING IN THE MARKET. WE SPLIT THOSE COST US IN THE PLAN PARTICIPANTS. THAT HURTS OUR EMPLOYEES. AND THAT ALSO HURTS OUR BOTTOM LINE HERE. SO JUST NEVER LOSE SIGHT OF THAT. THOSE ARE THINGS THAT YOU'RE BACK STOPPING WITH YOUR 120 DAYS, TOO. SO JUST BE REAL CAREFUL OF THAT. I FIND IT KIND OF INTERESTING THAT WE WERE VERY, VERY FOCUSED TODAY ON THE PARKS BOARD'S BUDGET, AND RIGHTLY SO. AND WE WERE VERY FOCUSED ON MAKING SURE THEY COULD REPLENISH THEIR RESERVES. AND I HOPE WE MAINTAIN THAT SAME VIGILANCE ON OUR RESERVES, BECAUSE WE ARE NOT IN 120 DAYS, AND WE'RE WORRIED ABOUT OUR COMPONENT UNIT, WHO'S LESS INVOLVED IN EMERGENCY SERVICES THAN WE ARE BEING AT THEIR 120 DAYS. SO I JUST WANT TO KEEP THAT ON YOUR PLATE. AND YOU KNOW, WHEN IT COMES TO TALKING ABOUT THE REVENUE STUFF, I WANT TO THANK YOU GUYS. I THINK THAT WAS A GOOD CALL. I HAVE CONCERNS AND A LOT OF THE CONCERNS. YOU HAVE TO LOOK AT IT. SHEILA AND I, THERE'S PEOPLE IN THIS WORLD THAT ARE VERY, VERY COMFORTABLE LIVING WITH LESS IN THE BANK. AND THEN THERE'S PEOPLE THAT NEVER HAVE ENOUGH IN THE BANK, AND THEY'RE WORRIED TO DEATH. I PROBABLY FALL SOMEWHERE CLOSER TO THAT, BUT MAYBE IN MORE IN BETWEEN. AND IT'S GOOD TO HAVE A DIVERSE SET OF OPINIONS ON THAT, AND I APPRECIATE IT, BUT I DON'T WANT YOU TO LOSE SIGHT OF OUR CONCERNS ON THAT BECAUSE THEY THEY'RE NOT JUST FANTASY, THEY'RE REAL CONCERNS THAT WE HAVE. WHENEVER YOU START SPENDING DOWN RESERVES OF ANY TYPE IN ANY FUND. WE NEED TO BE VERY COGNIZANT AND VERY CAREFUL OF THAT. AND THAT'S ALL I HAVE TO SAY. AND I WANT TO THANK SHEILA AND THE ENTIRE BUDGET STAFF, ESPECIALLY DEBBIE PIERCE, WHO THIS YEAR HAS REALLY WORKED AND KILLED IT ALONG WITH EVERYBODY ELSE FOR THEIR HARD WORK. IT'S BEEN IT'S BEEN NICE TO HAVE SOMEBODY TALK TO MIDNIGHT. SO IT'S THEY'VE PUT A LOT OF WORK INTO IT. AND I ALSO WANT TO THANK DAN FOR ALL HIS WORK WITH THE PARK BOARD. WE HAVE SPENT PROBABLY WELL OVER HALF OF OUR MAN HOURS, AT LEAST IN MY OFFICE IN THE PAST YEAR DEALING WITH PARK BOARD. SO IF ANYBODY EVER QUESTIONS YOU WHILE WE'RE HITTING 4%, THAT AIN'T EVEN COMING CLOSE. BUT WE FINALLY HAVE A, I THINK, A FANTASTIC RELATIONSHIP WITH OUR PARK BOARD. AND I THINK WE HAVE A REALLY GOOD RELATIONSHIP WITH THE PORT THESE DAYS, AND THOSE CAN ONLY GET BETTER. AND I THINK THAT WILL ONLY BENEFIT THE CITIZENS MORE. SO THANK YOU. I'M GOING TO MAKE JUST A COMMENT. FIRST OF ALL, THANK YOU, STAFF AND SHEILA, FOR ALL OF THE TIME AND EFFORT THAT YOU'VE PUT OUT FOR THIS. THIS IS. I THINK THE COUNCIL KNOWS. BUT FOR THE PUBLIC THAT DOESN'T KNOW, THIS IS A TIME WHERE THERE'S VERY LITTLE SLEEP AND THEY'RE WORKING SEVEN DAYS A WEEK TO GET THIS DOCUMENT TOGETHER. AND IT'S IT SHOWS YOU DID A VERY GOOD JOB ON THAT. I'M PERSONALLY CONCERNED ABOUT GOING TO THE NO NEW REVENUE RATE. I THINK THAT THAT'S THE INAPPROPRIATE, INAPPROPRIATE THING TO DO. TAKING INTO CONSIDERATION ALL THAT WE TALKED ABOUT, THE NO NEW REVENUE RATE WITHOUT MAKING SOME CHANGES THAT ARE BROUGHT FORWARD WITH THE [05:10:06] SERVICE FUNDS. I THINK THOSE CHANGES NEED TO BE DONE AND I THINK POLICIES NEED TO BE ESTABLISHED. BUT EVEN TAKING THAT INTO CONSIDERATION, I'M STILL CONCERNED ABOUT THE RATE THAT WE'RE DISCUSSING. I'M GOING TO ASK THIS IS PROBABLY A QUESTION YOU MAY NOT WANT TO BE ASKED, BUT KNOWING ALL THAT WE HAVE AND I'M NOT, NO, NOT ONLY LOOKING AT THIS COMING YEAR, BUT 3 TO 5 YEARS DOWN THE LINE. ARE YOU GUYS COMFORTABLE WITH HAVING THIS NO NEW REVENUE RATE TODAY? YOU KNOW COUNCIL IS GOING TO MAKE THE FINAL DECISION. BUT I WANT TO HEAR FROM YOU KNOWING HOW THIS CITY RUNS AND HOW WE MOVE FORWARD AND HOW DO WE NEED TO PROTECT THE CITY IN THE FUTURE. WHAT ARE YOUR THOUGHTS ON IT? IT'S BEYOND MY COMFORT LEVEL. I'LL PUT IT TO YOU THAT WAY. I'M NOT SAYING THE STAFF WILL DO 100%. I'LL GIVE 150% TO WHATEVER COUNCIL WANTS AND WE'LL DO OUR BEST. IT'S BEYOND MY COMFORT LEVEL, BUT EVERYBODY'S COMFORT LEVEL IS A LITTLE DIFFERENT. JUST LIKE I SAID, I'M THE GUY THAT GETS TO THE AIRPORT WAY EARLY, AND THERE'S PEOPLE THAT WOULD. THERE'S PEOPLE THAT ARE PACKING WHEN WE'RE STILL ON THE PLANE, SO IT'S JUST DIFFERENT. I THINK WHAT WE'VE SHOWN OVER THE LAST THREE YEARS IS THAT THERE'S GOING TO BE INCREASES IN EXPENDITURES THAT ARE FORCED UPON US. THEY'RE CONTRACTUAL, THEIR HEALTH INSURANCE. THEY'RE THE KINDS OF THINGS THAT WE DO. IF WE'RE PROVIDING THE SAME LEVEL OF SERVICE AS WE ARE TODAY, THOSE COSTS ARE GOING TO INCREASE. I THINK WHEN RECURRING COSTS INCREASE, YOU SHOULD HAVE A RECURRING SOURCE OF REVENUE TO OFFSET THAT. AND MY CONCERN LIES WITH THE IDEA THAT WHEN YOU HAVE RECURRING COSTS AND YOU'RE PAYING FOR THEM WITH ONE TIME SOURCES OF REVENUE, I THINK YOUR RISK IS HIGHER, THAT YOU'LL HAVE THE ABILITY TO DO IT AGAIN NEXT YEAR, BUT THEN YOU'RE ALSO DOUBLE FILLING THE HOLE, RIGHT? BECAUSE NEXT YEAR YOUR COSTS ARE INCREASING AND YOU'RE STILL FILLING THE HOLE FROM THE PREVIOUS YEAR. SO I THINK THERE'S RISKS. I THINK WE'RE WE'RE PROVIDING A GOOD BUDGET THIS YEAR. AND I FEEL COMFORTABLE THAT THIS BUDGET IS ONE THAT WILL BE EFFECTIVE THROUGHOUT THE YEAR. HOWEVER, I DO THINK THAT IT IS IT BEHOOVES ALL OF US TO FIND RECURRING SOURCES OF REVENUE TO OFFSET OUR RECURRING COSTS THAT ARE INCREASING. DAN, DID YOU WANT TO SAY ANYTHING? WELL, PROBABLY THE UNCERTAINTY OF THE LEGISLATURE IS SOMETHING I LOSE SLEEP OVER ON. THEY SEEM TO BE FOCUSED AND TARGETING MUNICIPAL GOVERNMENTS. THEY DON'T. FORTUNATELY, WE WEREN'T IMPACTED BY THE MOVE AFOOT TO REDUCE IT TO 2.5 FROM 3.5 BECAUSE OF OUR POPULATION SIZE, BUT IT'S COMMON. AND THAT'S SOMETHING THAT IT'S THE THINGS THAT ARE BEYOND OUR CONTROL. CHARLIE HIT ON IT A LITTLE BIT. THE HEALTH CARE COSTS. YEAH, WE CAN CHANGE THE PLAN. ALL OF THAT IS A NEGATIVE TO THE EMPLOYEES. YOU KNOW, WE CAN DO A LOT OF THINGS. YOU KNOW, PENSION WISE, YOU KNOW, SOMEBODY HAVE TO PAY, WHETHER IT'S EMPLOYEES OF THE CITY. AND IF THERE'S LIMITED INCOME, THERE'S NOT MUCH YOU CAN DO. SO I'M MOST WORRIED ABOUT THE THINGS THAT ARE BEYOND OUR CONTROL. I THINK COUNCIL DOES A GREAT JOB OF HOLDING OUR FEET TO THE FIRE. AND YOU KNOW, I THINK WHAT YOU WHAT YOU'VE SEEN AND I HOPE YOU RECOGNIZE IS THAT WE LISTEN TO YOU AND WE BROUGHT YOU BACK A BUDGET CONSISTENT WITH WHAT YOU ASKED FOR. YOU WANTED US TO REDUCE CERTAIN THINGS WE DID. AND AND WE WILL BRING YOU FORWARD THE POLICIES TO IN INSTILL THAT FUTURE DISCIPLINE. AND THE FORMER PEOPLE THAT SIT IN THESE CHAIRS AND THE FORMER COUNCIL MEMBERS ARE SITTING THERE. SO. AND ALSO THE ELEPHANT IN THE ROOM IS IS THAT THE HILL COUNTRY IS STILL WAITING FOR MONEY FROM FEMA. AND. IN PREVIOUS BUDGETS. YOU KNOW, YOU'RE ALWAYS WILLING TO SKATE ON A LITTLE BIT THINNER ICE WHEN YOU KNOW THAT THE FREEZE IS COMING. THE FREEZE AIN'T COMING. AND I USED TO BE CONCERNED ABOUT THE STORMS THAT DIDN'T TRIGGER DISASTER DECLARATIONS BECAUSE WE WE SUCK UP. WE JUST SUCK THAT UP. BUT I'M GROWING MORE CONCERNED NOW, IN ADDITION TO THOSE ABOUT THE STORMS THAT DO GET A DECLARATION, BECAUSE I'M LOOKING AT WHAT THE STATE IS DOING AT THE STATE LEVEL, AND I DON'T SEE THEM BOLSTERING. YOU KNOW, THE FEDERAL GOVERNMENT WANTS TO PUSH IT TO THE STATE. I'M NOT SEEING THE STATES STEP UP FINANCIALLY IN THEIR BUDGET. I'M NOT SAYING THEY WON'T HELP US, BUT I'M SAYING I'M NOT SEEING THAT. I'M NOT SEEING THOSE DOLLARS SHOWING UP THERE. SO THAT IS A MASSIVE CONCERN FOR ME. AND THAT'S WHY I SAY IT GIVES ME PAUSE RIGHT NOW AND GIVES ME CAUSE FOR CONCERN, BECAUSE THIS WOULD BE THE ABSOLUTE TIME TO BE AT 120 DAYS OR MORE, NOT BELOW IT, BECAUSE THERE IS A 10,000% UNCERTAINTY IN TERMS OF US GETTING ANY REIMBURSEMENT IN A TIMELY MANNER. [05:15:01] WE HAVE RESERVE LOANS. THOSE RESERVE LOANS ARE BACKED UP WITH FEMA REIMBURSEMENTS. SO KEEP THAT IN MIND. SO I KNOW IT MAKES EVERYBODY FEEL BETTER THAT WE HAVE THIS RESERVE LOAN. IT USED TO MAKE ME FEEL BETTER TOO. NOW THAT'S JUST ANOTHER CONCERN THAT I HAVE BECAUSE THAT IS A MAJOR, MAJOR CONCERN FOR THE CITY GOING FORWARD. THANK YOU. I APPRECIATE YOUR INPUT. LET'S MOVE TO THE BONDS NOW. CAN WE DO CAN WE DO THE STREET BOND FIRST FOR THE UGLY ONE AND THEN THE ONE MORE POSITIVE? CAN WE DO THIS? IS THERE OKAY? IS EVERYBODY OKAY? LET'S DO. LET'S DO THE BONDS. FIRST OF ALL, WE HAVE TO FIRE BOND. I'M GOING TO OPEN IT UP TO COUNCIL ON DISCUSSION. YES. EXCUSE ME. LET ME GET SOME NUMBERS. THERE'S SANDWICHES. NO. I'M SORRY. MY SANDWICH. PAGE NUMBERS. HE COULD JUST DROP A LINE. OKAY. WE HAVE. WE WANT TO TAKE A BREAK? LET ME JUST. COUNCIL. COUNCIL. SHARON. EXCUSE ME. DOES COUNCIL WANT TO TAKE A BREAK TO EAT SOMETHING? NOW? WE HAVE GOT PEOPLE WAITING TO. WE CAN EAT AND TALK. A RESTROOM BREAK WOULD BE KIND OF NICE. WELL, THAT'S IF YOU WANT TO EAT. GO RIGHT AHEAD AND LET'S TAKE A ABOUT EIGHT MINUTE BREAK. 230. WE'LL START BACK UP. IT'S 230. IT IS 2:30 P.M.. WE ARE NOW BACK IN SESSION AT OUR WORKSHOP, AND WE ARE DISCUSSING ITEM THREE AND THREE F ON OUR EVERYBODY. I THINK SHARON'S NOT GOING TO. BY THE WAY, COUNCIL MEMBER LEWIS HAD TO LEAVE SO SHE WILL NOT BE PRESENT FOR THE REMAINDER. REMAINDER OF THE WORKSHOP. AND. WE ARE DISCUSSING THE FIRE STATION NUMBER TWO BOND AND STREET [Items 3.E. & 3.F.] REPAIR BOND. SO BRENDA, DID YOU WANT TO LEAD US OFF ON THAT? JUST A RECAP. COULD YOU INTRODUCE OUR GUEST TO. PLEASE, SIR? YES, SIR. BARON WALLACE BOND, COUNSEL FOR THE CITY. WHO'S JOINING US HERE? BRANDON COOK, ASSISTANT CITY MANAGER. JUST TO RECAP. COUNCIL HAS BEEN DISCUSSING POTENTIALLY CALLING A STREET BOND ELECTION IN NOVEMBER. IT'S ON YOUR AGENDA FOR ACTION AS WELL TODAY. AND YOU GUYS GAVE US SOME DIRECTION TO BRING BACK SOME MAPS TO SHOW WHAT THAT $50 MILLION WORTH OF IMPROVEMENTS WOULD LOOK LIKE ACROSS THE ISLAND THROUGHOUT THE DISTRICT. JANELLE EMAILED EVERYONE COPIES OF THE PDFS AND AND THE PROPOSED IMPROVEMENTS ABOUT HOW FAR THE DOLLARS WOULD GET US. DIDN'T RECEIVE ANY FEEDBACK. IN WRITING ON THERE. SO, YOU KNOW, WANTED TO OPEN THE FLOOR TO COUNCIL IN CASE YOU GUYS WANTED TO POINT OUT ANY DEFICIENCIES OR OMISSIONS OR, YOU KNOW, PARTICULAR STREETS. WE NEED TO REALLY PRIORITIZE AND MAY HAVE NOT MADE THE LIST OR ANYTHING LIKE THAT. RIGHT. ALL RIGHTY. BEFORE WE TAKE QUESTIONS, BARON, DID YOU WANT TO SAY ANYTHING CONCERNING THIS BOND OR THE NEXT ONE COMING UP BEFORE WE START OUR DISCUSSION? I WILL, SINCE YOU'VE GIVEN ME THE FLOOR. AND. HELLO, EVERYBODY. BARON WALLACE, FOR THE RECORD. AND WITH BRACEWELL, ONE THING I WOULD SAY, WHICH IS THREE BOND PROPOSITIONS ARE IN ONE ORDINANCE OR PROPOSITION ONE RELATING TO STREETS, PROPOSITION TWO RELATING TO FIRE. THERE ARE A NUMBER, YOU KNOW, BOND ELECTIONS ARE SUPER COMPLEX BOOKS. NOW, MAYBE THEY WERE WHEN I STARTED MY CAREER, WHICH IS NOW A LONG TIME AGO. SO THERE'S A LOT OF COORDINATION. I DON'T SEE YOUR FINANCIAL ADVISOR. YOU STEPPED OUT, BUT WE WORK VERY CLOSELY WITH EVERYBODY TO GET THE RIGHTS RIGHT. THERE'S A VOTER INFORMATION DOCUMENT WHICH PASS IT AROUND THAT WILL BE PUBLISHED IN ABOUT 30 DAYS. AND SO IT'S JUST VERY IMPORTANT TO BE AWARE OF THE INFORMATION THAT'S GOING OUT TO THE PUBLIC. AND THEN ALSO THROUGH OUR FRIENDS AT THE ATTORNEY GENERAL, WE HAVE MADE THIS ELECTION SUBJECT TO THE LAWS THAT ARE GOING INTO EFFECT IN SEPTEMBER 1ST. SO THAT'S WHY YOU SEE, AT THE BEGINNING OF THE PROPOSITION, IT SAYS THIS IS A TAX INCREASE AND NOT BOLD, BUT ALL CAPITAL LETTERS. AND THEN THE LAST THING I WOULD SAY JUST, JUST JUST JUST JUST ALL CAPS. THAT'S OKAY. MAKING SURE THE TAX RATE I THINK EVERYBODY KNOWS ABOUT THAT. NOW, IF YOU DON'T KNOW, YOU KNOW, YOU KNOW. AND THE LAST THING I'D SAY, AND I HADN'T HEARD THIS, BUT I THINK EVERYBODY KNOWS THIS, IS THAT IF THE PROPOSITIONS FAIL, YOU ARE BARRED FROM GOING OUT TO ISSUE CERTIFICATES OF OBLIGATIONS TO DO THOSE PROJECTS. AND SO THAT'S ONE OF THE RISKS THAT YOU HAVE WHEN YOU CALL IT THAT BY CHARTERING. [05:20:05] OKAY. HOW LONG DO WE HAVE IF THEY FAIL? WHERE DOES THREE YEARS I BELIEVE UNDER STATE LAW I DON'T KNOW ABOUT THE CHURCH TO GO OUT FOR COS MAYOR, BUT WE CAN'T GO OUT FOR CEOS BY CHARTER WITHOUT A VOTE OF THE PEOPLE ANYWAY, SO IT'S REALLY A MOOT POINT FOR US. THAT'S IT. VERY GOOD. ALL RIGHT. DAVID. SO THE PROPOSED PACKAGE IS 50 MILLION FOR ROADWAY IMPROVEMENTS AND 10 MILLION FOR FIRE STATION TWO. IS THAT CORRECT? AND WITHIN THAT FIRST ACT, WITHIN EITHER PACKAGES, ARE THERE FLEXIBILITY IN TERMS OF THE TYPES OF CAPITAL AND CAPITAL IMPROVEMENT PROJECTS THAT YOU CAN DO? WITH RESPECT TO THE STREETS. YES, IT WILL BE THERE'S SOME SEVERAL FULL DEPTH RECONSTRUCTIONS ON THERE. AND ALSO MILAN OVERLAY. WE ARE PROHIBITED FROM SPENDING BOND DOLLARS ON ROUTINE MAINTENANCE. LIKE BLACKTOP IN YOUR MICRO SURFACING, SLURRY SEALS, THINGS LIKE THAT. SO WHAT YOU'RE SEEING RIGHT BEFORE YOU RIGHT NOW IS DEPICTING TAKING OUR EXISTING MILAN OVERLAY BUDGET. THE 2.1 IS SET ASIDE IN THE INFRASTRUCTURE DEBT SERVICE FUND. AND STARTING TO MOVE THAT OVER INTO THE MAINTENANCE ACTIVITIES LIKE MICRO SURFACING AND WHATNOT, AND THEN PRIORITIZING THE BOND DOLLARS FOR MILAN OVERLAY AND FULL DEBT RECONSTRUCTION. SO THIS IS ALL FULL DEPTH REPAIR FOR THOSE. MOST OF IT IS MILAN OVERLAY. THERE'S A FEW MILLION OVERLAY. YEAH, MOST OF IT'S YEAH, MOST OF IT IS MILAN OVERLAY. THERE'S ONLY A FEW STREETS REALLY CALLED OUT IN THE IN THE MAPS THAT ARE GOING TO BE A FULL DEPTH RECON ARE ITEMS SUCH AS IMPROVEMENTS TO ACCESSIBILITY, ADA RAMPS, SIGNAGE IMPROVEMENTS. OTHER TYPES OF MOBILITY IMPROVEMENTS POSSIBLE UNDERNEATH THE SPAWN PROGRAM. SO THE 50 MILLION NOW BARON DID INCLUDE SOME VARIOUS LANGUAGE IN THE BALLOT LANGUAGE THERE IF YOU WANT TO. SO WE UNDERSTANDING THAT PRIORITIES CHANGE AND PROJECTS ARE DYNAMIC, ETC. WE INCLUDED STREET LIGHTING, TRAFFIC SIGNALS AND RELATED IMPROVEMENTS. AND SO I WOULD IMAGINE THAT YOU COULD INCLUDE ALSO A SIDEWALK IF YOU WERE FOR EXAMPLE, I DON'T WOULDN'T USE SIDEWALKS, BUT IF WE'RE WE'RE WORKING A CORNER AND WE BREAK THE CURB AND WE HAVE TO REPORT, WE'RE GOING TO REPORT CORRECTLY WITH THE RIGHT WAY. AND THE REASON THAT I'M ASKING IS THAT WE'RE GOING THROUGH A COMPREHENSIVE PLANNING EFFORT RIGHT NOW. THERE ARE GOING TO BE PRIORITIES THAT THE RESIDENTS ARE GOING TO TELL US WHAT ARE IMPORTANT. AND I WOULD LIKE TO RESERVE FLEXIBILITY AS MUCH AS POSSIBLE IN ORDER TO ADDRESS THOSE AS THEY COME FORWARD. AND SO IT'S NOT JUST YOUR REPAIRING STREET, YOU'RE REPAIRING YOU RIGHT AWAY. YOU'RE IMPROVING THE RIGHT OF WAY FOR THE BENEFIT OF THE RESIDENTS. THAT'S MY OBJECTIVE IN ASKING THESE QUESTIONS, OKAY? AND THAT'S TOTALLY WITHIN CAL COUNCIL'S PROVIDENCE AS FAR AS THE LANGUAGE IS CONCERNED, WHICH IS TIES INTO YOUR BANK COVENANTS AND EVERYTHING. RIGHT. AND SO I KNOW WE PARTICULARLY INCLUDE INCLUDED TRAFFIC SIGNALS AND THINGS LIKE THIS BECAUSE WHENEVER WE MILL A STREET YOU KNOW, THE THE LITTLE PUCKS THAT CONTROL THE INTERSECTIONS THERE ON YOUR SIGNAL, TIMING, EVERYTHING ELSE. A LOT OF THOSE WE HAVE TO RIP UP AND EVERYTHING ELSE TO REPLACE AND. OKAY. AND APOLOGIZE IF THIS HAS ALREADY BEEN ANSWERED. BUT WITH THIS, WHAT THE THE IMPROVEMENTS ARE SHOWING HERE ON THE MAP, DO YOU HAVE A CALCULATION OF WHAT THE RESULTING PCI IS FOR THE OVERALL ISLAND OR. YES. IT INCREASES THE PCI BY ABOUT, THAT. HERE WE ARE. 79 TO 79 FROM A 74 RIGHT NOW. YEAH. GREAT. ASSUMING WE MAINTAIN WE CONTINUE OUR CURRENT LEVEL OF YOUR CURRENT MAINTENANCE AS THAT'S CURRENTLY IN THE BUDGET WILL GAIN SOME GROUND. OKAY, A LITTLE BIT. AND OF COURSE, YOU KNOW FROM THE PRIOR PRESENTATIONS OR WHAT HAVE YOU. I MEAN THAT'S THAT'S VERY IMPORTANT BECAUSE AS AS YOU DELAY AND KICK THE CAN, YOUR COSTS END UP QUADRUPLING FROM LIKE A A MILLION OVERLAY PROJECT TO A FULL DEP RECONSTRUCTION KIND OF PROJECT. THIS THIS IS VERY TIMELY BECAUSE IF WE WAIT ANY LONGER, MANY OF THESE WOULD BECOME FULL DEPTH. I ALSO SEE THAT WITHIN THE $50 MILLION YOU CAN ALSO COVER A COST FOR DESIGN. AND SO MY QUESTION IS, IS THAT, YOU KNOW, OFTENTIMES I WANT TO CALL A MAINTENANCE PROJECT, BUT A MILL AND OVERLAY TYPICALLY YOU MIGHT BE ABLE TO DO THOSE TYPES OF DESIGNS IN-HOUSE. WHAT'S KIND OF YOUR APPROACH IN TERMS OF HOW YOU ADDRESS THE DESIGN FOR THIS ENTIRE PACKAGE? AND THAT'S EXACTLY HOW WE'RE LOOKING AT DOING IT IS DESIGNING IT IN-HOUSE BECAUSE THE FULL DEPTH RECONSTRUCTIONS WE'RE GOING TO NEED TO HIRE. CONSULTANTS FOR THOSE, RIGHT? BECAUSE THOSE ARE MORE. WE'LL PROBABLY WILL DEVELOP A UNIFORM SPEC FOR MILAN OVERLAY, AND THEN THE THEN THE INDIVIDUAL PROJECTS WILL BE MORE INVOLVED WITH SLOPES AND DRAINAGE AND THINGS LIKE THAT ON THE STREET TO MAKE SURE WE'RE NOT HAVING ANY BIRD BATHS OR ANYTHING. OKAY, GREAT. THANK YOU. THREE TO PIGGYBACK OFF OF DAVID'S COMMENTS. THERE'S THREE PIECES THAT ARE COMPLETE RECONSTRUCTIONS, [05:25:02] RIGHT. WHICH ARE SALADA RIGHT THERE. THE OTHER ONE IS WITH ALL THE LINES. I'M HAVING A HARD TIME. YEAH, YOU CAN ZOOM IN. AND THERE IF YOU ZOOM INTO THE I THINK IT'S THE BEIGE LINES. THE KIND OF ORANGE FOR BRIAN'S PURPOSES, THOSE WOULD BE THE WORST. YEAH. SO THESE THESE STREETS HERE ARE THE ONES THAT ARE THE STREETS. THAT ONE. ARE THE MOST HELP. YES THEY DO. AVENUE IS THIS ONE. AND WE'VE GOT ANOTHER ONE HERE WHICH IS 45TH, A PIECE OF 45TH STREET. THERE'S SMALLER ONES THAT ARE CALLED OUT. NOW, REMEMBER, THIS IS AND HERE'S ANOTHER ONE HERE. OH. THAT'S A CADUCEUS, I BELIEVE. OH, NO, THAT'S WEIRD, MR. KLEIN. WHY DOES IT SAY WILLIAM SCHUSTER? WE NAMED THE STREET AFTER THIS GUY. AROUND HERE. THAT'S HIS HAIR. WE NAME HIS DAD. REALLY? SO, YEAH, THERE'S SEVERAL IN HERE. NOW, MIND YOU THIS THIS WAS THIS TAKING PLACE WITH A VEHICLE THAT TRAVERSED THE ENTIRE STREETS, THE LASER BEAMS ON THE BACK. THAT KIND OF DID AN ASSESSMENT OVER THERE. AND TRULY, TO FIGURE OUT WHETHER SOMETHING NEEDS A FULL DEPTH RECONSTRUCTION. YOU GOT TO TAKE CORE SAMPLES. I GET IT, BUT. RIGHT. THE POINT IS, WHEN I'VE KICKED THIS AROUND WITH SOME RESIDENTS. THE BIGGEST PROBLEM IS THE AMOUNT OF MILL AND OVERLAY, AND I UNDERSTAND THE OVERLAY IS A PART OF THE PROCESS OF REDOING YOUR STREETS. YEAH, BECAUSE WE'RE PAYING ABOUT $22 A SQUARE YARD FOR MILAN OVERLAY. ONCE YOU JUMP TO THE FULL DEPTH RECONSTRUCTION, IT JUMPS UP TO ABOUT 170. YEAH, WELL, PEOPLE DON'T FEEL LIKE THE MILAN OVERLAY IS A BANG FOR YOUR BUCK. I KNOW IT IS, BUT SQUARE YARD DOING SQUARE FOOT. SQUARE YARD. I BELIEVE THAT'S WHERE YOU ARE AGAIN. SQUARE YARD. 24 YARD. YES, BUT GLENN BRANDT FOR THE FOR THE CAMERAS. WHO ARE YOU VISITING WITH? THE REGION? YES, SIR. ZACH THOMPSON, SENIOR VICE PRESIDENT WITH ROADWAY ASSET SERVICES. IF WE'RE GOING TO ASK THEM TO PAY FOR SOMETHING. THE PEOPLE I'VE SPOKEN TO, THE MAJORITY OF THEM SAY THEY WOULD PREFER TO HAVE FLEET STREET RECONSTRUCTIONS. AND I KNOW THAT THERE'S SOME SCIENCE AND LASER BEAMS. AND YOU KNOW, ALEX, I KNOW DOCTOR EVIL IS CHECKING OUT STREET CONDITIONS, BUT IT'S A BIG ASK. AND AS DAVID'S POINT EARLIER WITH THE WITH THE WARS BOARD, YOU KNOW, WE'RE RUNNING UP. IT'S KIND OF TIGHT. AND WE HAVE A WE HAD VERY LITTLE TIME TO REVIEW. IT'S NOT THAT IT'S NOT A NOBLE THING AND SOMETHING THAT WE SHOULD DO FOR OUR RESIDENTS, BUT WHAT I DON'T WANT TO SEE IS A BUNCH OF PEOPLE WHO SAY IT'S ALL AN OVERLAY. WHY ARE WE PAYING FOR ASPHALT? RAISING TAXES FOR ASPHALT? THAT'S MY CONCERN. AND FAILING. AND IN THREE YEARS WE HAVE TO COME BACK. SO THIS IS A COUNCIL DISCUSSION. I GUESS I'LL BE HAPPY TO KIND OF TALK. SORRY. GO AHEAD. GO AHEAD. NO. BECAUSE WE STARTED DRAG OUR FOOT ON THESE, AND IT'S COMING TO US NOW. AND WE HAVE TO MAKE THE DECISION AT THIS. I KNOW THE MORE CRITICAL PART IS THE FIRE STATION. SO IF WE PUT THIS OFF TO THE MAY ELECTION, HOW CRITICAL IS IT FOR THE FIRE STATION VERSUS LOSING? IT'S THE FOREST. THE WHAT THE FIREMEN ARE DEALING WITH NOW IS FAR FROM IDEAL, BUT THEY'VE BEEN DEALING WITH IT FOR A LONG TIME. I DON'T KNOW THAT THAT MATTERS. I WOULD FEEL BETTER ABOUT IT IF WE HAD MONEY TO GO AHEAD AND START AND PAY FOR THE DESIGN OF THE FIRE STATION AHEAD OF THE MAY DEAL. I DON'T KNOW THAT I HAVE THAT IN THIS BUDGET. I HAVE ROOM TO DO THAT BECAUSE WE'RE YOU'RE TALKING 10%, PROBABLY, OR 10% OF WHAT IS THE AMOUNT FOR THE DESIGN. WELL, YOU'RE PROBABLY LOOKING ABOUT 8 OR $900,000. ALL IN WITH ENGINEERING AND EVERYTHING ELSE ON A $10 MILLION. TO START IT, YOU CAN START IT. AND IF WE WERE ABLE TO FIND ANOTHER RESOURCE, WE'RE NOT GOING TO GET FAR ENOUGH TO MATTER. I THINK, AT THAT POINT. IS THAT WHAT ENGINEERING COST THESE DAYS? USUALLY 7 TO 9% FULL SERVICE EVERYTHING. I MEAN, THEY COULD DO SCHEMATICS AND STUFF FOR US, BUT THAT'S NOT GOING TO GET US WHERE WE NEED. SO, MARIA, I HEAR YOUR COMMENT. I LIKE FIRST OFF, THE FIRE STATION IS YOU GOT TO DO IT SAYS 10 MILLION BOND ISSUANCE [05:30:01] MINIMUM. THE IDEA OF DOING. FIRST OFF, I GREW UP AS A CIVIL ENGINEER, KNOWING THAT YOU NEVER ISSUE BONDS FOR A MAINTENANCE PROJECT, WHICH YOU JUST SAID. HONESTLY, I'D INCLUDE MIL AND OVERLAY IN THAT, BUT THAT'S JUST ME. I MEAN, THAT'S WHERE I KIND OF DRAW THE LINE. IT'S JUST LIKE, YOU DON'T HAVE ELECTED OFFICIALS GOING OUT FOR A RIBBON CUTTING FOR AN ASPHALT JOB. I MEAN, SAME THING NOW. NO, NO, UNLESS THEY'RE IN CAMPAIGN MODE. THAT'S WHY THE MAYOR. NO. THAT'S GOOD. I KNOW. DID YOU GET IT? I SAID FRESH PAYS. ASPHALT. IT JUST DOESN'T FIT WITH THE $50 MILLION BOND. HAS ALWAYS BEEN. YEAH. IT DOES. IMPROVE YOUR PCI. YOU KNOW, IT GETS US UP FROM 74 TO 79. THAT'S A NOBLE OBJECTIVE. I MEAN, WE OUTLINED THAT WHEN WE DID WHEN THEY DID THE FIRST PLAN AND BROUGHT IT TO US. BUT THERE ARE OTHER WAYS TO GO ABOUT THIS. YOU CAN GO OUT FOR AS A LUMP SUM IN $50 MILLION AND GO JUST DO EVERYTHING ALL AT ONCE AND RAIN CHAOS ACROSS OUR CITY AS A PART OF THAT, OR YOU HAVE THE ABILITY TO THEN INCREASE YOUR TAX RATE AND PUT MORE MONEY INTO CAPITAL PROJECTS, BECAUSE YOU'RE GOING TO HAVE TO INCREASE YOUR TAX RATE WHEN YOU DO YOUR BONDS ANYWAY. SO YOU INCREASE YOUR TAX RATE TO ADDRESS YOUR CAPITAL IMPROVEMENT ON A ON JUST A PAY BY YOU GO. KEEP IN MIND ONE THING AND ONE THING I WANT TO POINT OUT TO YOU IN THIS. AND GOD BLESS THIS. WE'VE BEEN DOING THIS A LONG TIME, YOU AND I. IT. BUT YOU'RE FINANCING A 20 YEAR ROAD WITH A 20 YEAR BOND. SO YOU'RE NOT REALLY GETTING AHEAD. YOU'RE GOING TO YOU'RE GOING TO IMPROVE YOUR PCI SCORE. BUT IN 20 YEARS, WHEN THESE BONDS PHASE OUT, YOU'VE GOT TO DO THESE STREETS AGAIN. YEAH. THAT'S ALWAYS BEEN MY CONCERN ABOUT ASPHALT. SO TO TO ALEX MR. COUNCIL MEMBER PORRETTO ISSUE. WELL EVERYBODY KNOWS THAT WE CAN DO CONCRETE DOWN HERE BECAUSE WE DON'T HAVE FREE SALT CYCLES. SO THE ULTIMATE, YOU KNOW, TEST OF TIME IS YOU LAY DOWN CONCRETE. IT'S 50 PLUS YEARS, BUT IT'S PROHIBITIVELY EXPENSIVE. NOW, WE HAVE SEEN IMPROVEMENTS DOWN CERTAIN CORRIDORS WHERE WE'VE DONE LARGE SCALE DRAINAGE IMPROVEMENTS, THAT WE GO BACK AND DO IT COMPLETELY WITH CONCRETE. I THINK THAT IT WOULD BE WISE FOR US TO TAKE A LOOK AT MAYBE WHAT THAT LOOKS LIKE FROM YOUR FEWER ROADS. I GET IT, BUT MAYBE THERE'S A BLEND BETWEEN FULL DEPTH CONCRETE IMPROVEMENTS COUPLED WITH YOUR DRAINAGE IMPROVEMENTS, AND THEN SUPPLEMENT IT WITH AN OWL. I'LL CONTEND THAT YES, MILL AND OVERLAY FOR THIS WHAT YOU'RE GOING TO OFFER. AND LET ME LET ME BE LET ME BE THAT GUY. ASPHALT MILAN OVERLAY AND ASPHALT JOBS ARE FAR LESS OF AN INCONVENIENCE FOR THE RESIDENT THAN CONCRETE RECONSTRUCTION JOBS. THEY TAKE A LONG TIME. WE FIND EVERY UNFORESEEN THING IN THE UNION WITH A CONCRETE STREET JOB. MAINLY THAT OUR UTILITIES ARE THREE INCHES BELOW THE DAM SURFACE. SO WE THOSE ARE. THOSE ARE CONSIDERATIONS, TOO. YOU KNOW, I SAY A 20 YEAR, YOU KNOW, WE GET WE GET 20 YEARS OUT OF AN ASPHALT STREET. WE GOT A 20 YEAR BOND. WILL THE CITY OF GALVESTON GET 20 YEARS OUT OF A STREET? OH, HELL NO. WE'RE GOING TO GET 30, 35 YEARS OUT OF THAT STREET, BECAUSE THAT'S HOW WE ROLL HERE. BUT IN THEORY, IT'S LIKE FINANCING SCHOOL BUSSES ON A 20 YEAR BOND. ON. YEAH, YOU DON'T DO THAT. I KIND OF GET WHERE YOU'RE SAYING I GET WHERE YOU'RE GOING, BUT I ALSO KNOW WHERE WE ARE. SO THAT'S TO DAVID'S POINT, RIGHT? WE'VE BEEN DOING 53RD 45TH, 41ST. YEAH. ALL THOSE, ALL THOSE STREETS. THE NORTH SOUTH HAS BEEN REALLY GOOD PEOPLE. LIKE, I LIKE DRIVING ON THEM. I THINK I COME HERE, I THINK LEFT ON 53RD AND GO NORTH AND IT'S A NICE DRIVE EVEN THERE IS A SCHOOL I GO 20 MILES AN HOUR AND 37TH IS AN ASPHALT, BUT IT WAS A FULL DEPTH. THERE WAS ISSUES AT 37 TWO. I WAS ISSUES ON ALL OF THEM. YEAH, WELL IT WAS ALSO $12 MILLION TOO. SO THAT ONLY GETS YOU ABOUT FIVE STREETS. YEAH. I'M, YOU KNOW, LOOKING AT IT ON A RESIDENT PERSPECTIVE, WE'RE ASKING YOU TO DIG IN YOUR POCKET. YOU'RE GOING TO BE PAYING. OH I GET IT FOR A 20 YEAR STREET AND THE BONDS ARE 20 YEARS. YOU DON'T GET THE YOU KNOW, IT'S YOU DON'T GET THE LONGEVITY OF IT. BUT YOU DO. AND I'M NOT TRYING TO HURT THE WEST END IF WE, YOU KNOW, RAISE TAXES. I MEAN, IF YOU DO P OR O OR SOME STREET LIKE THAT, THAT'S FULL DEPTH RECONSTRUCTION. I THINK RESIDENTS WILL SAY AT THE END OF THIS, I'M GOING TO HAVE ONE OF THE NICEST ROADS EAST, WEST. I COULD GO NORTH, SOUTH. AND A LOT OF THOSE STREETS THAT WE'VE DONE CONCRETE WITH. THE DRAINAGE IMPROVEMENTS ARE RESIDENT DRIVEN STREETS, AND THE TRAFFIC HAS PICKED UP DRAMATICALLY ON THOSE STREETS. 53RD STREET'S TRAFFIC COUNT HAS ALMOST TRIPLED. WE'RE REPLACING LIGHTS. SAME THING WITH 45TH STREET, EVEN 43RD STREET. THE TRAFFIC REALLY INCREASED ON THE CONCRETE STREETS. PEOPLE GRAVITATE TO THEM WHEN THEY'RE OUT. I HAVE I HAVE RESIDENTS WHO LIVE ON STREETS THAT HAVE NEVER HAD AN IMPROVEMENT IN 40 [05:35:05] YEARS. YEAH, NOTHING LIKE MAYBE A POTHOLE FILLED. WHAT I DON'T WANT TO SEE IS VOTERS ON THE EAST END VOTE DOWN SOMETHING. NOT THAT IT'S ONLY DOING THE WEST END. BUT MILAN OVERLAY IS. SAY IT'S PATCHWORK, BUT IT'S 20 YEAR PATCHWORK. WELL, I THINK THERE'S A PLAN. YOU'VE NEVER HAD ANYTHING DONE TO YOU. YOU'D WANT YOU'D VOTE FOR IT TOO. I AGREE WITH YOU NOW, BUT I MEAN, YOU YOU REALLY HAVE TO THROW THE BABY OUT WITH THE BATHWATER. BUT I THINK WE HAVE A PICTURE. BUT I DO THINK WE'RE RUSHING INTO THIS. I THINK WE TALKED ABOUT IT, AND NOW WE'RE ON THE FINAL DAY, AND WE FINALLY GET THE LANGUAGE THAT I DO HAVE AN ISSUE WITH. I DON'T WANT IT TO BE VOTED DOWN JUST BASED ON. MILAN OVERLAY, BECAUSE PEOPLE DON'T FEEL LIKE THEY'RE GETTING THEIR MONEY'S WORTH. WHEN WE COULD HAVE SOME TIME TO DISCUSS IT AND SAY WHAT? BRING IT BACK TO OUR RESPECTIVE VOTERS AND SAY, YOU KNOW, HEY, MAYBE THE WEST END NEEDS A LOT OF MILAN OVERLAY AND THEN MAYBE SOME OF THE EAST END AND MIDDLE OF THE ISLAND IN BO'S DISTRICT NEEDS. YOU KNOW, BO MIGHT NEED SOME RECONSTRUCTION AND MORE MILAN OVERLAY. AND THEN I CAN TELL YOU, JUST FROM SPEAKING TO MY PEOPLE FROM 61ST EASTWARD, THEY WANT SOME STREETS. I CAN TELL YOU, WE HAVE DETERIORATED ROADS THAT ARE LOWERING OUR PROPERTY VALUES AGAIN. SO THAT'S HURTING OUR BOTTOM LINE TOO. I DON'T KNOW, I THINK PERSONALLY, I THINK IF IT AND AGAIN, I PUT THE FIRE STATION FIRST THAT WE SHOULD DO THIS IN MAY. I THINK WE SHOULD HAVE DONE THEM TWO YEARS AGO WOULD HAVE BEEN MORE FINANCIALLY BETTER. I DON'T DISAGREE WITH MARIE AT ALL. I'M ALWAYS JUST BECAUSE I TRY TO LOOK OUT FOR YOU GUYS. SOMETIMES ELECTED OFFICIALS DON'T LIKE THEIR NAME ON A BALLOT WITH A BOND ISSUE. THAT'S THAT WOULD BE. I'M JUST PUTTING THAT OUT THERE FOR YOU GUYS. BUT THAT'S 100% YOUR DECISION. OKAY, STAFF WILL GO. HOWEVER Y'ALL WANT IT TO GO WITH ANYTHING. I GET THE FEELING BECAUSE THE BONDS BECOME. THEY BECOME POLITICAL ISSUES. SCHOOL BONDS DID TOO. YEAH. I GET FROM COUNCIL'S DIRECTION HERE. WE'RE GOING TO HAVE AN ACTION ITEM THIS AFTERNOON. I THINK WE WANT TO MOVE FORWARD WITH THE FIRE STATION. LET'S HOLD OFF ON THE STREETS. LET'S GET SOME MORE. WAIT A MINUTE. IF WE. SO YOU CAN ONLY DO A BOND ELECTION. HOW OFTEN? I DON'T THINK THERE'S ANY LIMIT AS TO HOW OFTEN WE CAN DO A BOND ELECTION. WELL, CURRENTLY. YEAH, WELL, I MEAN, IF ONE FAILS. YEAH. I MEAN, IT'S JUST THAT YOU'RE GOING TO BE PAYING FOR TWO ELECTIONS, BUT WE'RE ALREADY PAYING FOR THE MAY ELECTION. SO YEAH, THE FATIGUE, THE VOTER FATIGUE. YEAH. AND I THINK WE EVEN WITH THE FIRE STATION, I MEAN, I'M THINKING THAT IT MAY BE GOOD TO TAKE BOTH TO MAY BECAUSE PEOPLE HAVE A BAD TASTE IN THEIR MOUTH RIGHT NOW FROM BONDS. AND IT NEEDS TO BE VERY CLEAR AND CONCISE BECAUSE OF THE SCHOOL. I WOULD SAY THIS AND THIS IS JUST THIS IS A POLITICAL EDITORIAL BY BRIAN. MOST CITIES, MOST CITIES AND I DON'T I LIKE TO VOTE ON THINGS TOO. BUT MOST CITIES ARE $10 MILLION OR LESS ISSUE. THEY WOULD HAVE ISSUED CEOS AND BUILT THE DAMN FIRE STATION. BECAUSE OF OUR CHARTER AND BECAUSE OF THE WAY GALVESTON IS, WE HAVE TO TAKE IT TO THE VOTERS. WELL, THEN WE SHOULD HAVE DONE THE CHARTER CHANGES. WE TALKED ABOUT THAT A YEAR AGO. I DOUBT THE VOTERS WOULD EVER CHANGE FROM, OH, I DON'T THINK THEY'VE CHANGED. I TYPICALLY A CITY OUR SIZE IS GOING TO I MEAN, EVEN TECH CITIES ISSUING CEOS AND THEY'RE SPENDING TEN TIMES WHAT WE'RE SPENDING. YOU DON'T YOU FOR A FIRE STATION. THAT'S A CO ISSUE. THAT'S SOMETHING THAT'S A ROUTINE BUSINESS ISSUE FOR A COUNCIL. TYPICALLY WE CAN'T DO THAT AND WE WON'T DO THAT. THERE'S NO REASON TO RUSH FORWARD WITH THIS IN NOVEMBER. FOR THE FIRE STATION, WE TALKED ABOUT ACTUALLY GETTING PEOPLE TO COME OUT TO VOTE BEING AN ISSUE AND THE DIFFERENCE BETWEEN MAY AND NOVEMBER IF I HAD A LITTLE BIT OF FLEXIBILITY IN THE BUDGET, I REALLY WOULD ENCOURAGE YOU GUYS TO HELP ME FUND THE ENGINEERING AND DESIGN FOR THAT FIRE STATION. SO THAT WAY WHEN THE BONDS PASS, WE CAN REALLY ROLL QUICK WITH IT. BUT I MEAN, THE FIREFIGHTERS, OUR GUYS, THEY DON'T COMPLAIN OR THEY JUST GO TO WORK AND I'M PROUD OF THEM FOR THAT. BUT IT'S IT'S REALLY GOOD. IT SOUNDS LIKE FOR SURE WE WANT TO WAIT ON THE STREETS. DO WE WANT TO WAIT? FOR SURE. NOT MAKING ANY FINAL DECISIONS AND WORKSHOP. RIGHT? THAT IS CORRECT. BUT DO WE? IS THE THOUGHTS ABOUT WAITING ON THE FIRE STATION ALSO, OR IS THAT PERHAPS, MAYOR, YOU SHOULD ASK AROUND THE TABLE, WHAT ARE YOUR THOUGHTS ON THE FIRE STATION AND LET EACH PERSON SPEAK? THAT WAY WE CAN JUST GET AN IDEA. BARON. WHAT? NO. I'M NOT. I'M A LITTLE CONFUSED AS TO WHAT MORE INFORMATION OR WHAT'S GOING TO INFORM THE [05:40:04] STREET BOND PACKAGE ANYMORE. WHAT ARE WE GOING TO DO TO MAKE THAT A BETTER PACKAGE WHEN WE DO COME BACK? WHAT I WOULD PROPOSE IS THAT WE GO KIND OF BY DISTRICT AND IF YOU CAN. BASICALLY, IF YOU LOOK AT IT IN A CERTAIN WAY, EACH DISTRICT HAS ESSENTIALLY A BUDGET, ESSENTIALLY AN ALLOCATED AMOUNT THAT WE CAN ASSIGN OR ASK BRIAN TO BRING US BACK TO MAKE IT LOOK BETTER. AND NOT TO SAY IT'S A NEIGHBORHOOD IMPROVEMENT FUND, BUT YOU HAVE KIND OF A GENERAL IDEA OF WHAT YOUR AREA BECAUSE WE SAID BREAK IT DOWN BY DISTRICT LAST. I REMEMBER THAT, BRIAN. AM I CORRECT? WE KIND OF SAID, BREAK IT DOWN MY DISTRICT. YES, THAT'S THAT'S THE WAY TO DO A BOND ISSUE. TRUTHFULLY, IT IS. SO WE CAN WE CAN KIND OF LOOK AND GO BACK TO OUR RESIDENTS AND SAY, HEY, YOU KNOW, DO WE WANT TO DO MORE MELLON OVERLAY? DO WE WANT TO, YOU KNOW, SPRUCE UP ONE AREA? DO WE WANT TO? I THINK THAT'S THE WAY TO DO IT. I THINK GETTING THE VOTERS INVOLVED IN THE ONLY WAY TO GET IT TO BE SUCCESSFUL. ONE OF THE THINGS YOU COULD DO, AND WHAT ALEX IS TALKING ABOUT, IS PUTTING A BLEND IN AND WHERE IF YOU DID IT IN MAY, THE BOND ISSUE WOULD INCLUDE MILAN OVERLAY. IT WOULD BE FUTILE TO GO PUT CONCRETE STREETS IN A LOT OF THE AREAS THAT NEED TO GET DONE ON THE WEST END. I MEAN, THAT WOULD INVOLVE CURB AND GUTTER AND EVERYTHING ELSE. WE CAN'T DO THAT RIGHT NOW, BUT AN OVERLAY COULD ADDRESS 99% OF THOSE ISSUES OUT THERE. WE'RE IN TOWN. I GUESS YOU HAVE A HIGHER NEED, BUT THE BLEND MAY ALSO REQUIRE US TO HAVE MORE THAN A $50 MILLION BOND, WHICH IS FINE. IF THE VOTERS APPROVE IT, THAT'S FINE. IT IT COMES DOWN TO WHAT ARE YOUR OBJECTIVES? ARE YOU TRYING TO MEET A CERTAIN PCI OR ARE YOU TRYING TO, YOU KNOW, REPAIR YOUR WORST FIRST? LIKE OUT WEST WE TALK ABOUT OR ARE WE OR ARE WE COUPLING IT WITH AN OVERALL MOBILITY PLAN THAT HAS YET TO BE DEFINED? RIGHT. THAT MARRIES UP DRAINAGE IMPROVEMENTS WITH YOUR YOUR YOUR STREET IMPROVEMENTS. I YOU KNOW, STREETS AREN'T POLITICAL, BUT CHOOSING THE POLICE, YOU KNOW, AS I UNDERSTAND, STREETS DON'T VOTE CEMETERIES TO YOUR LEFT PRESENTATION AS I UNDERSTOOD IT WAS WAS VERY, VERY OBJECTIVE. LOOK AT ALL OF THIS. IT HAD HAD TECHNICAL EQUIPMENT. LOOK AT ALL THIS. AND YOU PROJECTED OUT YEAR, LIKE YOU SAID, 20 YEARS AHEAD. SO IT WAS TOTALLY BASED ON, I GUESS, ECONOMICS MORE THAN ANYTHING, ECONOMIC AND OBJECTIVE ANALYSIS. THAT'S WHAT YOU WANT. THAT'S WHERE THAT'S WHERE THAT'S WHAT I GOT IN THE LAST PRESIDENT. THAT'S WHY YOU HAVE A BLEND OF FULL DEPTH RECONSTRUCTION AND THEN MILL AND OVERLAY STREETS AND MICRO SURFACING, BECAUSE IT WAS A PURE ECONOMIC AND ENGINEERING ANALYSIS. AND I'M NOT I'M JUST NOT CLEAR ON WHY THAT'S NOT GOOD ENOUGH. WELL, I DON'T KNOW. I MEAN, I DON'T THINK ANYBODY SAID IT WASN'T GOOD ENOUGH. THE VOTERS THAT WILL TELL US AT THE BALLOT BOX, I THINK YOU CAN TAKE YOUR ENGINEERING AND SHOVE IT. WE'RE NOT GETTING YOUR BILL. I WOULD DEFEND THAT AT MY DISTRICT. I WOULD DEFEND THAT. THAT WAY, THAT METHODOLOGY CAN BE EASIER THAN THE URBAN AREA THAN IT WILL BE OUT WEST. SO BUT I THINK THE DISCUSSION THAT THE MAYOR ASKED US ABOUT WAS FIRE STATION. OH, DID I GET THAT? IS THAT CORRECT? MY QUESTION. YEAH. WE'RE GOING TO BUILD AN ASPHALT FIRE STATION. THE FIRE STATION. MY QUESTION TO STAFF WAS, IS THE FIRE STATION? YOU SAID, NO, WE DON'T HAVE TO HAVE IT IN BAY MARY. YOU NEVER HAVE TO HAVE ONE. BUT I MEAN, THEY I MEAN, AFTER HURRICANE IKE. THESE GUYS WORKED OUT PORTABLE BUILDINGS, BUT IT IS LESS THAN IDEAL. AND WE ARE WITHIN 12 MONTHS NOW OF NEW EQUIPMENT ARRIVING. AND THERE IS A HIGH CHANCE THAT SOME OF THIS EQUIPMENT WILL NOT BE ABLE TO FUNCTION OUT OF THAT STATION. ALL RIGHT. LET'S HAVE IN ADDITION TO JUST THE SAFETY ISSUES WITH THAT STATION, WE'RE OKAY. LET ME TALK ABOUT THE FIRE STATION IN JUST A SECOND. OF COURSE, I THINK THAT'S SOMETHING THAT'S NEEDED, BUT I THINK IT'S ALSO A BAD IDEA TO DO A BOND ISSUE IN NOVEMBER. ANOTHER ONE IN MAY. I THINK THERE'S A LOT OF VOTER FATIGUE THAT WOULD OCCUR THAT WE WOULDN'T WE WOULDN'T GET THE RESPONSE WE NEED. WELL, YES AND NO. I GET WHAT BOB'S SAYING, BUT YOU'RE ALL GOING TO BE ON THAT MAY BALLOT. SO IF THERE'S VOTER FATIGUE FROM THE NOVEMBER ELECTION, NOBODY GOING TO BE VOTING FOR YOU ALL IN. WELL, IT'S THE IT'S THE VOTER FATIGUE OF YOU'RE ASKING ME TO SPEND MORE. YOU'RE ASKING ME TO POCKET MORE. TAX ME AGAIN. YEAH. SO IT'S NOT THAT POPULAR AS A CATHOLIC. THIS IS LIKE THE SECOND COLLECTION. IT'S TOGETHER AND YOU CAN SELL IT AND SAY, THIS IS WHAT YOU'RE GETTING, AND IT'S CLEAR, YOU KNOW. I MEAN, THIS WAS KIND OF THE ISSUE WE RAN INTO WITH THE CHARTER AMENDMENTS, YOU KNOW, DO WE WANT TO RUSH IT? NO, I THINK WE WANT TO TAKE OUR TIME. I THINK WE WANT TO TAKE OUR TIME. I THINK WE WANT TO TAKE OUR TIME WITH, WITH WITH BOTH OF THESE. ALTHOUGH I THINK THE LOCAL WILL DO A GOOD JOB KNOCKING DOORS TO, YOU KNOW, BEG THE RESIDENTS FOR A NEW FIRE STATION. I THINK DOING ONE TIME FUNDS ON THAT ONE. YEAH, I AGREE WITH YOU ON THAT. A BOND BECAUSE IT WOULD BE SHORT TO FAIL. [05:45:02] SO YES. HOW DO WE HOW SO? TO BRIAN'S POINT, EARLIER HE SAID HE WOULD LIKE THE OPPORTUNITY TO TRY TO BRIDGE THE GAP BETWEEN DESIGN AND CONSTRUCTION. IF WE'RE GOING TO HOLD OUT ON THE BOND PACKAGE FOR THE FIRE STATION UNTIL MAY, APPROVE FUNDS FOR THE PURPOSES OF GETTING MOVING AHEAD AND TO DESIGN, BECAUSE THAT'S GOING TO TAKE NINE MONTHS OR SO OR WHATEVER. IF WE IF WE DON'T DO THAT AND WE PUSH THAT OUT UNTIL, YOU KNOW, WE ISSUE THE BOND PROGRAM. NOW, THE FIRE STATION IS NINE, TEN A YEAR BEHIND. JUST CAN YOU REIMBURSE IT? I BELIEVE YOU CAN. YES. YES YOU CAN, I BELIEVE. WOULD YOU GET THE MONEY FROM RIGHT FROM THE BOND PLASMA? NO. BUT WHERE WOULD YOU IF YOU MOVE FORWARD NOW WITH THAT, WHERE WOULD YOU GET THEM BASED ON THIS BUDGET WE HAVE, IF YOU GUYS DO NOT ADJUST ANYTHING FROM WHAT WE'VE PRESENTED TO YOU TODAY, IT WOULD HAVE TO COME FROM YOUR FUND BALANCE IN THE GENERAL FUND. FARM AND TED'S INTERNAL REVENUE FUND. THAT'S A RISK. YOU KNOW, IT'S POSSIBLE THAT THE VOTERS WOULDN'T VOTE FOR IT. AND YOU'D BE STUCK WITH THESE PLANS THAT YOU COULDN'T DO ANYTHING WITH IT FOR THREE YEARS. NO, NO, NOT THREE YEARS. WE COULD GO ABOUT IMMEDIATELY. WE COULD JUST. THERE'S NO THE STATE LEGISLATURE HAS PUT NO LIMIT ON THE AMOUNT OF TIMES YOU CAN PUT THINGS TO THE VOTERS. I THOUGHT WE COULDN'T YOU COULDN'T YOU COULDN'T ISSUE NON VOTED. YEAH. CORRECT. YOU CAN'T PUT IT TO THE VOTERS AND THEY VOTE IT DOWN. AND YOU SAY WELL I'M GONNA ISSUE CEOS AND DO IT ANYWAY. YOU CAN'T DO THAT. OKAY I VOTE. JUST I MEAN FILL IN THE SENTIMENT OF MULTIPLE BONDS THROUGH THE SCHOOL DISTRICT, SCHOOL BOARD, AND THEN BEING PART OF THE ONES THAT BIG ONE WAS JUST PASSED. I THINK THAT WE WOULD DO IT. WE WOULD BE DOING A HUGE DISSERVICE TO THE POSSIBILITIES OR OPPORTUNITIES FOR THAT. FIRE STATION NUMBER TWO, IN PARTNERSHIP WITH THE ROADWAY IMPROVEMENT. I. I THINK THAT THIS SHOULD GO FOR NOVEMBER. I THINK THAT THERE IS A BIG PUSH BY THE FIREMAN'S UNION AND PEOPLE THAT I'VE ALREADY TALKED TO ABOUT THE NEED FOR THIS, ESPECIALLY WITH THAT EQUIPMENT COMING IN. I THINK WE SHOULD TABLE THE $50 MILLION BOND FOR ROAD IMPROVEMENT UNTIL WE HAVE A LITTLE BIT BETTER PLAN AND CONSENSUS AMONG US. BUT I DON'T THINK WE SHOULD HOLD OFF ON WHAT WE'VE KIND OF COMMITTED TO. TO THE FIRE DEPARTMENT. ALL RIGHT. ANY OTHER THOUGHTS? LET'S MOVE ON. I'M GOING TO AGREE. I AGREE WITH BO ON THAT. BRING IT FORWARD. AN ACTION ITEM. WE'LL SEE HOW THIS PLAYS OUT ON THAT. ALL RIGHT. LET'S MOVE FORWARD. [3.G Galveston Housing Finance Corporation/Galveston Property Finance Authority committee introduction, mission, strategy discussion (B Brown/C Brown -20 min)] ITEM THREE G PLEASE READ ITEM THREE G. GALVESTON HOUSING FINANCE CORPORATION GALVESTON PROPERTY FINANCE AUTHORITY COMMITTEE. INTRODUCTION. MISSION. STRATEGY. DISCUSSION. ALL RIGHT. GOOD THINGS COME TO THOSE WHO WAIT. SO COME FORWARD, IF YOU WOULD. AND COUNCILMAN MIND INTRODUCE OUR GUESTS THAT YOU HAVE HERE. OKAY. WELL THANK YOU. JUST WHAT WE'RE DOING HERE TODAY IS IS YOU KNOW, THE WORK. THE WORK OF THIS COMMITTEE IS GOING TO REQUIRE CITY COUNCIL TO REVIEW AND APPROVAL FOR PROGRAMS AND ISSUANCE OF ANY BOND OR ANY DEBT. THE COMMITTEE HAS NOT BEEN ACTIVE IN RECENT YEARS WITH ALMOST TWO YEARS. AND THE COUNCIL IS PROBABLY NOT FAMILIAR WITH WHAT THIS COMMITTEE DOES, WHAT ITS MISSION IS. ITS STRATEGY IS LEGAL AUTHORITY. SO WE WANT TO GIVE YOU A BRIEF INTRODUCTION AND ASK FOR FEEDBACK SO THAT WHEN WE DO COME BACK TO COUNCIL WITH A PROPOSAL, YOU'LL HAVE SOME UNDERSTANDING OF HOW THE COMMITTEE OPERATES AND BE ABLE TO EVALUATE WHAT MAY BE PROPOSED. AND THE COMMITTEE IS THE THE GALVESTON HOUSING FINANCE CORPORATION, GALVESTON PROPERTY FINANCE AUTHORITY. IT'S GOT ABOUT AN EIGHT LETTER LONG ACRONYM, WHICH IS A LITTLE BIT CUMBERSOME, BUT IT'S THE MERGING OF TWO COMMITTEES. SO AND REALLY, IT'S THE REASON I'M DOING THIS IS BECAUSE IT'S SUCH IT'S SO IMPORTANT TO THE CITY. IT'S BEING ABLE TO ATTRACT PEOPLE WHO WANT TO LIVE AND WORK ON THE ISLAND AS A BROAD IMPACT ON OUR LOCAL INDUSTRY, OUR ISLAND IDENTITY, OUR QUALITY OF LIFE. AND WE NEED AN ISLAND BASED WORKFORCE TO SUPPORT THE TOURISM, MEDICAL, CONSTRUCTION, HOTEL, FOOD AND BEVERAGE, SHIPPING CREWS AND OTHER CRITICAL ISLAND INDUSTRY. WE HAVE TO DO ALL WE CAN IF WE'RE GOING TO AVOID BECOMING AN ELITE PLACE. WE'RE ONLY WEALTHY PEOPLE WHO ARE NOT PART OF THIS WORKFORCE CAN AFFORD TO LIVE ON THE ISLAND AND NOT COMMUTE ACROSS THE CAUSEWAY. SO A DIVERSE, WORKING AND ENGAGED POPULATION IN A MIX AND NEIGHBORHOOD IS A KEY TO A HEALTHY COMMUNITY. AND THAT'S WHAT THIS COMMUNITY, THIS COMMITTEE IS WORKING TOWARDS. NOW, SINCE SINCE WE'VE MET, WE FIGURED OUT WHAT WE'RE WHAT WE'RE REALLY DOING. YOU KNOW, WE'VE GOT A COMMITTEE ALL STAFFED UP WITH NEW COMMITTEE MEMBERS, RESOLVED OUR FINANCIAL POSITION, PAY THE BILLS, AND WE NOW HAVE A REALLY ENGAGED AND COMMITTED DEDICATED COMMITTEE EAGER TO MAKING [05:50:05] A DIFFERENCE. AND I'M JUST GOING TO SAY WHO'S ON THAT COMMITTEE REAL QUICK. CODY WRIGHT RIGHT HERE. PRESIDENT MARK STASTNY. VICE PRESIDENT CHRIS ROBB. THANK YOU. KNOW HIM WHEN YOU HEAR US. BANKS, THE SECRETARY JIMMY CLAW, MARK MCKENNA, JESSICA RANDALL, AND THEN MICHELLE. MICHELLE. HEY, IS IS OUR STAFF AND TREVOR FANNING, THE LEGAL DEPARTMENT OF JANELLE WILLIAMSON. WE ALSO HAVE ROBERT BASTIAN AS AN ATTORNEY, PAID ATTORNEY, AND EDDIE WALSH, EDDIE WALSH AND ASSOCIATES. SO WITH THAT, I WANT TO INTRODUCE CODY, THE PRESIDENT, AND MARK THE VICE PRESIDENT. AND HE'S GOING TO THEY'RE GOING TO WALK YOU THROUGH THIS PRESENTATION. THANK YOU. THANK YOU SO MUCH, BOB, I REALLY APPRECIATE THAT INTRODUCTION. THANK YOU. MAYOR, CITY COUNCIL AND CITY STAFF. I KNOW IT'S A LONG DAY. WE NEED DONE. SO WE REALLY APPRECIATE THAT GIVING US THE TIME AND OPPORTUNITY TO SPEAK TO YOU TO KIND OF, SORT OF REINTRODUCE YOU TO THE BOARD AS WE ARE GETTING REACTIVATED AND WE OURSELVES ARE BEING RE-ENERGIZED. FOR THE GALVESTON HOUSING FINANCE CORPORATION AND THE GALVESTON PROPERTY FINANCE AUTHORITY BOARDS. AS BOB SAID, MY NAME IS CODY WRIGHT. I CURRENTLY SERVE AS THE PRESIDENT OF THOSE TWO BOARDS. MY PROFESSIONAL BACKGROUND IS IN ACCOUNTING AND NONPROFITS, AND PERSONALLY, I'VE LIVED IN GALVESTON FOR 14 YEARS. I'M THE PROUD MOM OF AN EIGHT YEAR OLD SON. AND I'M A HOMEOWNER HERE ON THE ISLAND AS WELL. I REQUESTED TO SERVE ON THESE BOARDS BECAUSE I STRONGLY BELIEVE THAT GALVESTON IS AN AMAZING, VIBRANT, AND DYNAMIC COMMUNITY, BUT WE'RE AT RISK OF LOSING PART OF THAT, IN PART DUE TO THE HOUSING CONSTRAINTS THAT EXIST ON THAT ISLAND. SO WE'RE GOING TO KIND OF WALK THROUGH BRIEFLY SOME OF WHAT. WHO WE ARE AND WHO WE ARE IN REGARDS TO THE DIFFERENT HOUSING OPPORTUNITIES HERE ON THE ISLAND. WE, AS BOB MENTIONED, THAT WE DID DO A STRATEGIC DEVELOPMENT PROCESS WITH A THIRD PARTY CONSULTANT EARLIER THIS YEAR IN MARCH AND WHICH RESULTED IN OUR DECISION AS A BOARD, WE WOULD LIKE WE ARE GOING TO FOCUS ON SINGLE FAMILY HOME OWNERSHIP FOR THOSE WITH AN ARMY OF WHICH IS AN AREA MEDIAN INCOME OF 60 TO 140%. SO WITH THAT, OUR PRIORITIES ARE GOING TO BE FOCUSING ON ATTAINABLE HOMEOWNERSHIP, WHICH CARRIES POWERFUL BENEFITS AND A POSITIVE KNOCK ON EFFECT TO OUR COMMUNITY, AS WELL AS FOCUS ON WHAT WE'RE CALLING THE THE MISSING MIDDLE OF HOMEOWNERSHIP, WHICH I'LL DISCUSS ON THE NEXT SLIDE. WE WANT TO FOCUS AND UTILIZE OUR UNIQUE FINANCIAL TOOLS AND CAPABILITIES THAT WE HAVE AS THE FINANCING AUTHORITY AND THE. FINANCE. THE HOUSING FINANCE CORPORATION. TO FACILITATE TARGETED RESIDENTIAL DEVELOPMENT. BUT WE WILL NOT BE A HOME BUILDER THAT AT THIS POINT IS NOT OUR PLANS. AND WE ALSO WANT TO DEVELOP A STRUCTURE FOR SUSTAINABILITY, SUSTAINABLE AFFORDABILITY FOR THE HOMEOWNERS HERE IN GALVESTON, AS WELL AS MAKE SURE OURSELVES AS THE BOARD ARE FINANCIALLY SELF SUFFICIENT AND STABLE AS WELL. SOME OF THE ITEMS THAT WE DON'T FOCUS ON, AND NOT THAT THERE'S ANYTHING WRONG WITH THEM, BUT THESE ORGANIZATIONS AND THESE MISSIONS ARE WELL COVERED BY OTHER ORGANIZATIONS HERE ON THE ISLAND. WE ARE NOT THE GALVESTON HOUSING AUTHORITY. WE THEY OPERATE MORE ON PUBLIC HOUSING ISSUE VOUCHERS AND FOCUSED ON DEEPLY SUBSIDIZED HOUSING FOR LOW AND LOW, VERY LOW TO LOW INCOME HOUSING, WHICH IS OFTEN UNDER 50% AMI WE ARE NOT THE REDEVELOPMENT AUTHORITY, WHICH IS FOCUSED ON HOUSING FOR ECONOMIC DEVELOPMENT PERSPECTIVE. AND WE ARE NOT FOCUSED ON LOW INCOME AFFORDABLE HOUSING, INCLUDING PUBLIC HOUSING, HOUSING CHOICE VOUCHERS AND TECH DEVELOPMENTS, WHICH ARE LOW INCOME HOUSING TAX CREDITS. AND WE ARE ALSO NOT FOCUSED ON LARGE MULTIFAMILY DEVELOPMENTS. SO THIS SLIDE, I THINK, IS A REALLY HELPFUL REPRESENTATION OF THE PRIORITIES THAT WE ARE FOCUSING ON. WE ARE LOOKING AT THE AREA IN THE RED BOX THAT 60 TO 1, 40%. AMI AND OUR CONSULTANT, ALEX MILLER, WAS REALLY HELPFUL WITH PREPARING THIS FOR US TO KIND OF GIVE A REALLY VISUAL REPRESENTATION OF WHO WE ARE TALKING ABOUT. AND WHEN WE MENTION ATTAINABLE HOUSING, FOR US, THAT MEANS HOUSING THAT'S WITHIN THE REACH OF THE WORKING AND THE MIDDLE INCOME FAMILIES LIKE THE TEACHERS, THE NURSES, THE CIVIL SERVICE WORKERS WHO DON'T QUALIFY FOR PUBLIC HOUSING BUT STILL CAN'T AFFORD THE MARKET PRICES IN GALVESTON. SO THAT FALLS INTO THAT 60 TO 120 AND UP TO 140%. AM I? SO THAT IS THE MISSING MIDDLE OF THOSE, BECAUSE WE WANT TO ENSURE THAT THOSE FAMILIES, THAT AND INDIVIDUALS WHO MAKE GALVESTON WORK CAN AFFORD TO LIVE HERE IN GALVESTON. CODY, I THINK ANOTHER THING IMPORTANT ON THAT SLIDE, [05:55:03] YOU GOT A COST BURDEN OVER THERE THAT GIVES YOU AN IDEA OF THE MAGNITUDE OF THE NEED. THANKS, BOB. SO THIS NEXT SLIDE, AS BOB MENTIONED, THIS IS ALL GALVESTON OR GALVESTON COUNTY AREA. THIS IS GAL. THESE ARE THESE ARE GALVESTON NUMBERS. JUST GALVESTON JUST UNDER 23,000. JUST JUST UNDER 23,000. SINGLE FAMILY RESIDENCES I THINK IS WHAT YOU'RE PULLING FROM. RIGHT. YEAH. IT SOUNDS ABOUT RIGHT. SO THIS SLIDE FURTHER HIGHLIGHTS SOME OF THE INFORMATION THAT WE USED THAT WE OBTAINED FROM OUR STRATEGIC PLANNING SESSIONS, WHICH KIND OF HELPED FORMULATE OUR FOCUS AND WHICH IS WHAT REALLY HELPED REENGAGE A LOT OF THE BOARD INTO THESE FOCUSES. LIKE I MENTIONED IN MY WIFE'S STATEMENT, THOSE THAT MAKE OUR COMMUNITY SO VIBRANT, THE SOCIAL, THE SERVICE WORKERS, THE FAMILIES, THE YOUNG PROFESSIONALS, THE CIVIL SERVANTS, THOSE THAT ATTEND THAT SPONSOR AND PARTICIPATE IN LITTLE LEAGUE AND THAT YOU SEE EXPLORING ARTWALK ARE BEING PRICED OUT AND HAVING TO MOVE OFF THE ISLAND. I HAVE SEVERAL FRIENDS WHO FALL INTO THAT CATEGORY. THEY ARE LOOKING TO EXPAND IN THEIR HOME THEY CAN'T AFFORD HERE ON THE ISLAND, SO THEY'RE MOVING OFF THE ISLAND. AND WE'RE HOPING TO FIX THAT. AS THIS IS SHOWING THAT THE HOUSING COST BURDEN IN GALVESTON IS THAT WE'RE JUST NOT AS COMPETITIVE AS THOSE COMMUNITIES AROUND US. THIS IS COMPARING TO LEAGUE CITY. OUR CURRENT RESIDENTS ARE SIGNIFICANTLY COST BURDENED WITH 37% OF HOMEOWNERS THAT HAVE A MORTGAGE ARE COST BURDENED, AND WHICH MEANS THAT 30% OF THEIR ANNUAL GROSS INCOME IS SPENT ON HOUSING COSTS. SO WITH THAT, I'M GOING TO TURN IT OVER TO MARK, AND HE IS GOING TO WALK THROUGH HOW WE PLAN TO ADDRESS THESE. THANKS, CODY. JUST VERY BRIEFLY WE'VE MADE A BIG CHANGE IN NOT BUILDING HOUSES TRADITIONALLY AND HISTORICALLY. THIS THIS THIS, THIS GROUP, THESE BOTH OF THESE BOARDS HAVE BUILT HOUSES, AND THAT'S HOW THEY'VE BUILT HOUSES AND, AND GENERATED FUNDS TO, TO HAVE SUSTAINED ACTIVITIES. WE DECIDED SPECIFICALLY NOT TO DO THAT FOR TWO REALLY TWO REASONS. ONE IS THAT THE FUNDAMENTAL MARKET IN GALVESTON HAS CHANGED. I MEAN, THE HOUSE PRICES HAVE GONE UP SO HIGH. THE LAND, THE UNDERLYING LAND COST IS SO HIGH THAT WE ARE NOT. WE ARE NOT IN A POSITION TO MAKE A MEANINGFUL DIFFERENCE BY BEING A HOME BUILDER, BECAUSE WE WERE ACTUALLY BUILDING HOMES THIS COMMITTEE WAS IN IN THE PAST. THERE'S ALSO, AS YOU AS YOU PROBABLY KNOW VERY, VERY WELL, THERE'S BUILDERS THAT ARE BUILDING INFILL HOUSING TODAY. AND, YOU KNOW, WITH THE CURRENT DIP IN THE MARKET, YOU KNOW, SOME OF THEM ARE STRUGGLING TO SELL THOSE. BUT THAT BUT THE FACT IS THAT WHAT THE INFILL THAT WE WERE DOING AS A GROUP, YOU KNOW, 10 OR 15 YEARS AGO, THAT'S ALREADY BEING BEING SUSTAINED BY THE PRIVATE MARKET. SO WE'RE NOT GOING TO WE'RE NOT GOING TO TRY TO DO THAT. BUT THAT MEANS THAT WE NEED TO COLLABORATE MUCH MORE, MUCH MORE SPECIFICALLY AND AND MUCH MORE INTENTIONALLY. AND, AND REALLY, WE WANT TO BRING IN THE EMPLOYERS, THE EMPLOYERS AND THEIR ABILITY TO ATTRACT ATTRACT GOOD WORKERS. AND ESPECIALLY YOU SEE, THE CONCERNS OF THE EMPLOYERS. BRIAN, BRIAN HEARS THAT ALL THE TIME AND IS TRYING TO FIGHT THOSE BATTLES. BUT WE ALSO ARE BLESSED WITH PHILANTHROPIC DONORS THAT, YOU KNOW, THE YOU HAVE ENDORSED THE THE GALVESTON ESSENTIAL WORKFORCE HOUSING FUND AND THE CONCEPT OF THAT AND, AND AND BY BY COLLABORATING AND NOT TRYING TO BUILD WE WANT TO USE THE FINANCIAL TOOLS THAT WE HAVE, THE FINANCIAL CAPABILITIES IN ORDER TO IN ORDER TO HELP THOSE THOSE PROJECTS ALONG BE THE LUBRICATION, AS IT WERE, TO THESE PROJECTS, RATHER THAN TRYING TO BUILD THEM OURSELVES. AND SO THAT'S A BIG CHANGE, AND WE'RE STILL TRYING TO FIND OUR FOOTING. BUT BUT I'LL GIVE YOU A SPECIFIC EXAMPLE, THE ELLIE MORGAN PROJECT THAT'S GOING ON WITH BILL GALVESTON, THE COMMUNITY DEVELOPMENT CORPORATION THAT ALIGNS VERY, VERY WELL WITH OUR STRATEGIC INTENT. AND SO IT'S SINGLE FAMILY HOMES. IT'S RIGHT IN THAT THAT HARD CUT OF THE OF THE DEMOGRAPHIC THAT WE'RE TARGETING. AND IT REALLY IT REALLY IT WE'RE TRYING TO FIGURE OUT AND WE'RE GOING TO COME BACK TO YOU PRETTY SOON WITH SOME PROPOSALS ON HOW WE WANT TO PARTICIPATE AND HELP THAT PROCESS ALONG. WE'RE NOT GOING TO LEAD IT, BUT WE WANT TO HELP EITHER THAT DIRECTLY WITH THE HOMEOWNERS OR MAYBE WITH INFRASTRUCTURE. BUT WE WANT TO WE WANT TO PARTICIPATE IN THAT, TO HELP IT MOVE ALONG AND HOPEFULLY CEDE THAT CONCEPT TO HAPPEN AGAIN AND AGAIN. BECAUSE TO ME, THAT'S BEAUTIFUL. BECAUSE IT'S TAKING TAX. TAX PROPERTY THAT WAS NOT ON THE TAX ROLLS, PUTS IT ON THE TAX ROLLS AND IS A BENEFIT FOR THE FUTURE AND ALSO FOR THE FAMILIES. YES, MA'AM. HAVE YOU ALL LOOKED AT THE DATA THAT'S OUT THERE THAT CURRENTLY THERE IS 167 HOMES [06:00:01] HOUSES ON SALE FOR UNDER 300,000 ON THE ISLAND? YEP, YEP. WE'RE IN THE MIDDLE OF A VERY STRANGE MARKET CORRECTION, AS IT WERE. AND SO THERE'S A YOU WHEN WHEN THAT HAPPENS, THE MARGIN OF US AND OUR BENEFIT GETS SMALLER BECAUSE THE HOUSES AND THEIR ACQUISITION COSTS SPECIFICALLY HAVE GOTTEN SMALLER AND AND SOME OF THOSE. SOME OF THOSE ARE WORKING. WORKING FOR THE THE PEOPLE THAT ARE TRYING TO GET INTO HOUSES. BUT LONG TERM, THE AFFORDABILITY IS NOT JUST THE ACQUISITION COSTS, IT'S THE INSURANCE, IT'S THE TAXES. IT'S THE THING THAT WE ALL KNOW MAKE IT MORE EXPENSIVE TO LIVE HERE. AND AND IT MAKES IT MORE DIFFICULT. BUT ABSOLUTELY, WE HAD AN ASSESSMENT AND WE WERE DOING ANALYSIS AND TRYING TO FIGURE OUT, HEY, IF THE COST IS DOWN HERE, WHAT'S WHAT'S THE POINT? WHY ARE WE DOING WHAT WE'RE DOING AND HOW CAN WE DO IT DIFFERENTLY TO ADDRESS THAT AND MAYBE HELP PEOPLE GET INTO HOUSES, MAYBE GIVE INCENTIVES. BUT WE WANT TO GET SOME MORE FEEDBACK FROM YOU ABOUT WHAT YOU'D LIKE TO SEE IN A FEW MINUTES. I THINK CODY WILL SAY, WELL, YOU KNOW, WE NEED WE NEED MORE IMPACT AND WHERE SHOULD WE BE LOOKING? BUT ESSENTIALLY THESE THESE ARE THE COLLABORATION WE'RE ALSO HAVE ESTABLISHED, REESTABLISHED A COLLABORATION WITH THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION. AND WHAT THEY DO IS THEY HAVE A KIND OF A SUITE OF OF HOMEBUYER FINANCING ADVANTAGES. AND SOME OF THOSE ARE BASED ON ON LOWER, LOWER INTEREST RATES. SOME OF THEM ARE BASED ON STATEWIDE PROGRAMS THAT ARE STATE SPONSORED THAT WE CAN HAVE ACCESS TO JUST BY PARTNERING WITH THEM. AND SO WE'VE DONE THAT ALREADY. SO THAT BUT AGAIN, THAT THAT PARTNERSHIP IS GOING TO ALLOW US, AT THE VERY MINIMUM WITH WITH EFFORTS LIKE ELLA MORGAN TO TO GET PEOPLE TO OFFER PEOPLE AND THAT AREN'T BELOW 60% BECAUSE OUR CITY HAS A HOUSING OFFICE AND THEY ARE BY BY STATUTE, CAN ONLY FOCUS UP TO THE 60% AMI LEVEL. AND THAT'S THAT'S A GREAT PLACE TO FOCUS. BUT THERE'S A THIS MISSING MIDDLE WE'RE TRYING TO ADDRESS. SO THE NEXT POINT. SO SO OUR STRATEGIC PLAN IS REALLY A ATTAINABLE HOUSING SUPPORT AND FOR ACCESS. AND REALLY THAT'S HOME BUYER. IN THE SHORT TERM WE FEEL LIKE OUR BEST OUR BEST OPTION IS TO IS TO SUPPORT HOMEBUYERS AND TRY TO GET THEM INTO HOMES AND AND AND EXISTING AND NEW NEW PROJECTS LIKE LA. MORGAN FOR EXAMPLE. THE OTHER IS TO TO COLLABORATE WITH LOCAL PARTNERSHIPS PARTNERS. AND THAT'S THAT'S REALLY WHERE WE'RE TRYING TO FIND AND LOOK AT INNOVATIVE WAYS TO WORK WITH COMMUNITY DEVELOPMENT CORPORATIONS, WORK WITH PRIVATE DONORS TRYING TO FIND OUR FEET AND AND LEVERAGE OUR LEVERAGE OUR, OUR SPECIFIC TOOLS. AND THEN GOING FORWARD, WE HAVE TO FIND A WAY TO, TO BE SELF-SUSTAINABLE. WE ARE AN INDEPENDENT CORPORATION THAT'S AN ARM OF THE CITY. AND I DON'T I MEAN, LEGALLY, WE HAVE SOME VERY SPECIFIC AND STATUTORILY DEFINED CAPABILITIES. LIKE FOR EXAMPLE, WE CAN ISSUE BONDS LIKE PRIVATE ACTIVITY BONDS AND THESE THESE BONDS. AND NONE OF US ON THE, ON THE, ON THE BOARD ARE BOND EXPERTS. CHRIS PROBABLY COMES AS CLOSER THAN ANYBODY THAT WE HAVE. BUT BUT IT GIVES US THE CAPABILITY TO, TO TO CONSIDER AND COME TO YOU WITH PROPOSALS FOR BONDS AND TO, TO FUND ACTIVITIES THAT ARE HOUSING RELATED THAT DO NOT EXTEND. THEY ARE NOT EXTENDING LEGAL OBLIGATIONS TO THE CITY ITSELF. SO IT'S REALLY AN INTERESTING, INTERESTING CAPABILITIES THAT WE'RE EXCITED ABOUT. BUT WE NEED TO WE NEED TO BUILD MORE INTO IT. SO LAST, LAST SLIDE IS AS I WILL TELL YOU, THAT WE HAVE SOME PRETTY SIGNIFICANT ASSETS. THESE ASSETS, WE GOT ABOUT $900,000 IN THE BANK. AND WE UNDERSTAND WE NEED TO BE GOOD TO FIDUCIARY GUARDIANS OF THAT MONEY. THAT MONEY WAS GENERATED FROM ALL THE HOUSING, BUILDING ACTIVITIES AND FINANCING ACTIVITIES THAT HAPPENED IN THE PAST. AND WE CANNOT JUST FOR FRITTER AWAY, BUT WE ALSO UNDERSTAND THAT WE HAVE TO DO SOMETHING. WE HAVE TO TAKE ACTION AND WE HAVE TO GENERATE, WE HAVE TO GENERATE INTEREST. FOR EXAMPLE, WE'RE MOVING OUR FUNDS SIMILAR TO WHAT THE CITY DOES IS MOVING THEM TO TEXAS. INSTEAD OF JUST CDS, WE WANT TO GET A BETTER RETURN ON THAT MONEY SO WE CAN HAVE HAVE EARNINGS TO TO APPLY TO HOMEOWNERS. SO SO THAT'S WHERE WE'RE GOING. WE UNDERSTAND THAT WE NEED TO BE GUARDIANS OF THAT MONEY, BUT WE DON'T WANT TO SIT ON IT EITHER. IT'S BEEN THAT MONEY HAS BEEN SITTING THERE LITERALLY FOR MANY, MANY YEARS. SO IT'S A GREAT POSITION TO BE ON. BUT WE BUT WE WE WANT TO MOVE FORWARD. I'LL TURN IT BACK OVER TO KATIE. THANKS, MARK. SO AS MARK KIND OF ALLUDED TO YOU EARLIER, WE DO APPRECIATE YOUR TIME AND ATTENTION AND LISTENING TO US. I KNOW WE MIGHT BE NEW TO YOU AS WELL, BUT WE WANTED TO KIND OF TURN IT BACK TO YOU [06:05:02] AND SEE IF WHAT WE KIND OF PRESENTED TODAY, I KNOW VERY ABBREVIATED FORM, IF THAT ALIGNS WITH WHAT THE VISION OF THE CITY IS, BECAUSE WE DO WANT TO MAKE SURE THAT WE'RE IN ALIGNMENT. SO WHEN WE COME TO SPEAK AND I GET APPROVAL AT COUNCIL THAT WE DON'T WASTE EVERYONE'S TIME THAT WE HAVEN'T SPENT ALL THIS TIME. SO. AND WE ALSO WANT TO UNDERSTAND ANY CONCERNS YOU MAY HAVE HAD IN WHAT WE PRESENTED AND WHAT WE HOPE OUR VISION AND OUR FOCUS IS AS THE BOARD. SO THE SUCCESSFUL PROGRAMS I'VE SEEN THAT ARE DOING WORKFORCE HOUSING PEOPLE HAVE TO SHOW PROOF THAT THEY ARE ACTUALLY WORKING 120 HOURS A MONTH. AND THE COUNTY OR THE CITY. HAVE YOU THOUGHT OF HOW YOU'RE GOING TO JUSTIFY, LIKE HOW YOU'RE GOING TO QUANTIFY THAT? IT'S ACTUALLY GOING TO WORKFORCE HOUSING? YEAH, I THINK I THINK THERE'S THERE'S A THERE'S A NUMBER OF DETAILS THAT HAVE TO BE WORKED OUT. THAT IS ONE OF THEM. YOU KNOW, WE ALSO NEED TO MAKE SURE THAT WE'RE WE'RE SPENDING THE MONEY, MONEY TOWARD TOWARD PEOPLE THAT ARE WORKING HERE AND AND THERE MEETING INCOME LIMITS. WE HAVE. WELL, EVEN AS A GFK G C WE WE HAVE INCOME LIMITS. IT'S LIKE $132,000. AND SO SO WE HAVE TO WE ALL HAVE TO DO ALL THAT. ALL THAT WORK. WE HAVE TO QUALIFY PEOPLE AND THERE HAS TO BE THERE HAS TO BE STRUCTURES PUT IN PLACE TO DO THAT. HOW DO YOU PREVENT SOMEBODY FROM, FROM FROM FLIPPING YOU SUBSIDIZE AND BRING THEM IN, BUILD THEM A NICE HOUSE AND THEY TURN AROUND AND SAY, HA HA. AND THEY SELL ACTUALLY PUT DEED RESTRICTIONS, OTHER PLACES RESTRICTIONS. AND IT'S IT SPECIFIES IN THE DEED RESTRICTION THAT IT CAN ONLY BE USED FOR WORKFORCE HOUSING. BUT WE'RE NOT BUILDING HOUSES RIGHT NOW AT THIS JUNCTURE. WE'RE TALKING MORE ABOUT YOU GUYS ARE TALKING MORE ABOUT DOWN PAYMENT ASSISTANCE, SOFT CIRCUITS AND THINGS LIKE THAT. THE FIRST STEP. FIRST STEP. ABSOLUTELY. BUT LONGER TERM, WE'RE GOING TO COME BACK TO YOU WITH THOSE OTHER TYPES OF PROGRAMS. I MEAN, YOU'RE STARTING OFF WITH SOME ASSETS ALREADY. HAVE YOU ALL IDENTIFIED IN TERMS OF, LIKE, A KPI IN TERMS OF NUMBER OF RESIDENTS THAT YOU'RE TRYING TO HELP OR THE QUANTITY, QUANTITY OF HOMES THAT YOU'RE TRYING TO GET PEOPLE INTO? I KNOW THIS MAY BE EARLY STAGES, BUT OBVIOUSLY THAT'LL TELL YOU HOW MUCH OF YOUR RESOURCES CAN GO TO A PARTICULAR HOUSE. RIGHT. RIGHT. WE'VE KIND OF TALKED ABOUT THE INITIAL PART AND THE THE SLIDE THAT HAD THE PASSIVE INCOME WITH THE INTEREST FROM TAX POOL. THAT'S INITIALLY WHAT WE KIND OF THOUGHT WOULD BE WHAT WE WOULD BE ABLE TO USE TO OFFER TO DOWN PAYMENT ASSISTANCE. SO WE'VE BEEN TOSSING AROUND WHETHER IT'S CAPPED AT NUMBER OF HOMES OR IF IT'S DOLLAR AMOUNTS. WE HAVEN'T QUITE SETTLED ON THAT YET, BECAUSE HISTORICALLY, THIS FUND HAS REGENERATED ITSELF TO BUILD A HOUSE, SELL A HOUSE, BUILD A HOUSE, SELL A HOUSE. OH, I SEE, SO THERE'S NOT A THERE'S NOT A RECURRING REVENUE STREAM FOR THIS FUND. ONCE THIS MONEY'S GONE, THERE'S NO NEW MONEY. THAT WAS GOING TO BE MY NEXT POINT. RIGHT. OKAY. ALL RIGHT, WELL, ONE WAY, AS A GFK, WE'RE ALSO HAD THE CAPABILITY OF PARTICIPATING IN LOW TECH PROJECTS EVEN THOUGH WE DON'T WANT TO DO THEM. WE COULD BE THE GENERAL PARTNER IN A LOW TECH PROJECT WHERE A DEVELOPER CAME IN AND SAID, I WANT TO BUILD LOW INCOME MULTIFAMILY HOUSING, AND WHAT WE ARE IS THE GENERAL PARTNER, AND WE WOULD GET FEES FROM THAT. AND IT'S ACTUALLY FAIRLY, FAIRLY SIGNIFICANT FEES THAT COULD FUND OUR OTHER ACTIVITIES. IF YOU HAD DEVELOPERS THAT CAME IN AND WANTED TO DO THAT OR REDEVELOP LIKE ON JONES ROAD JUST GOT REDEVELOPED AND THAT ALL THAT MONEY WENT TO THE, THE PACOS GFK. SO, SO WE WANT TO PREVENT THAT FROM HAPPENING. IF IT'S GOING TO HAPPEN, WE NEED TO DO IT AND IT NEEDS TO BENEFIT THE CITIZENS OF GALVESTON. OKAY. I HAVE A QUESTION. IT SEEMS TO ME TO THAT YOU'VE ALREADY ALLUDED TO IT, THAT PROBABLY THE BEST BET, TOO, IS TO WORK AND BE PART OF ANOTHER GROUP TO HELP COMBINE YOUR EFFORTS THAT HAVE DEEPER POCKETS. AND I THINK YOU MENTIONED THE LA CLAY MORGAN PROGRAM. MY QUESTION IS, IF YOU PARTICIPATE WITH AN ENTITY LIKE THAT, HOW DO YOU GENERATE MORE FUNDS COMING INTO THE. IT DOES NOT SEE YOUR POINT. YEAH. IF THAT'S MONEY, IT'S ALL ONE WAY FOR THAT LA MORGAN PROJECT. ABSOLUTELY. OH. I'M SORRY. I WAS GONNA SAY THERE IS THE OPPORTUNITY TO, AS MARK MENTIONED WITH THE THE SETH SOUTHEAST, THERE ARE SOME PROGRAMS THAT DOES AS THE HOME TIME, THE FIRST TIME HOMEBUYERS JOIN AND PARTICIPATE IN THOSE PROGRAMS. THERE IS SOME VERY SMALL BUT THERE IS A LIKE A RESIDUAL THAT KIND OF CAN COME BACK TO US IN THAT METHOD AS WELL. I THINK THAT'S WHAT WE HADN'T QUITE MENTIONED, IS THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION THAT JUST RE-UPPED A PARTNERSHIP WITH YOU KNOW, THEY OFFER THIS DOWN PAYMENT ASSISTANCE. AND SO ANYTHING THAT THEY ANY IN OUR CITIZENS HAVE NOT DONE. [06:10:02] YOU KNOW, I THINK GALVESTON COUNTY, THERE'S VERY FEW FOLKS WHO ARE TAKING CARE OF IT, TAKING ADVANTAGE OF IT. THAT'S A GREAT OPPORTUNITY, I THINK. IT'S WHAT, 10 TO $14,000 THAT THEY WOULD APPLY THROUGH THAT GROUP. THIS GROUP WOULD GET SOME LITTLE PERCENTAGE OF THAT. BUT THEN THEN YOU'RE ALSO TALKING ABOUT THEN DO WE ADD ON AN ADDITIONAL $5,000 OR WHAT ARE YOU TALKING ABOUT THE SOUTH. THE SOUTHEAST TEXAS HOUSING FINANCE CORPORATION. YES. SETH. ORG. YEAH. THEY HAVE A COUPLE OF DIFFERENT PROGRAMS. THE FIVE STAR. RIGHT. AND THAT THERE'S ANOTHER TEXAS HAT OR SOMETHING LIKE THAT. THERE'S A COUPLE DIFFERENT PROGRAMS. AND SO THE KEY THING WITH THAT IS JUST MAKING SURE WE HAVE THE APPROVED LENDERS INVOLVED. THE REALTORS KNOW THAT THESE PROGRAMS ARE INVOLVED. SO THAT'S AT WHAT POINT MARK SAID THE COLLABORATORS WE'VE TALKED. WE'VE BEEN TALKING WITH MICHELLE. HOW CAN WE ALL WORK TOGETHER? CREATE IS ARE WE CREATING A WEBSITE? WHAT DOES THAT LOOK LIKE? WE ARE HINDERED IN THE FACT THAT WE ARE VOLUNTEERS AND I'M MICHELLE. IT HAS HER TIME ALSO OCCUPIED WITH IDC. SO WE KEEP IT BUSY. YES. SO WE'RE TRYING TO EXPLORE THOSE DIFFERENT OPPORTUNITIES OF HOW WE CAN ALSO JUST MAKE SURE EVERYONE KNOWS THESE PROGRAMS ARE OUT THERE. DO WE HAVE A WORKSHOP? DOES DO WE COORDINATE WITH VISION AND BILLS AND THEY DO A TRAINING, THINGS LIKE THAT. THERE'S A LOT OF DIFFERENT OPPORTUNITIES WE'RE EXCITED ABOUT. BILL GALVESTON PUT TOGETHER A PROGRAM FOR INCENTIVIZING AFFORDABLE HOUSING AND SET ASIDE MILLIONS OF DOLLARS FOR THAT. WHERE ARE THEY ON THAT AND WHAT IS YOUR INTERACTION AND COLLABORATION WITH THAT, I THINK, ARE YOU TALKING ABOUT THE WORKFORCE ESSENTIAL WORKFORCE HOUSING FUND THAT WAS FUNDED BY THE DONORS LIKE THE PHILANTHROPIC. SO SO THAT'S IT'S MY WELL, MAYBE YOU SHOULD SPEAK TO THAT. YOU WERE YOU WERE CLOSER TO IT. I WAS I'M NOT 100% SURE WHERE THEY STAND IN THEIR FUNDING OF THAT. WE'RE NOT AS OF RIGHT NOW, HAVING OUR REGULAR MEETINGS, WE'RE HOPING TO DO A QUARTERLY CO-OP. I THINK WITH SOME OF THE PEOPLE INVOLVED WITH THE HOUSING, BUT I KNOW WE'VE WE'VE DISCUSSED AS A BOARD THAT WE WOULD BE WILLING TO COMMIT A CERTAIN DOLLAR AMOUNT TO THEM, WHICH I KNOW WOULD HELP WITH THEIR STAFF WHEN IT CAME TO THEIR DIFFERENT FUNDING SOURCES. SO THAT'S KIND OF, AS MARK ALLUDED, ONE OF OUR NEXT STEPS THAT WE'RE GOING TO BE DISCUSSING IN OUR BOARD MEETING. WELL, I THINK LA MORGAN IS A PART OF THAT. I THINK PART OF THOSE FUNDS, BECAUSE THOSE ARE BASICALLY LINES OF CREDIT THAT THEY HAVE WITH WITH THE FUND. AND ELLIE MORGAN IS GOING TO BE AN EXAMPLE PROJECT THAT THEY CAN USE AS A CANARY IN THE COAL MINE, AS IT WERE. I WOULD AGREE, I THINK THAT'S THE CASE. WELL, WHAT OUR NEXT STEP, YOU'RE GOING TO BE RESEARCHING OR COMING BACK WITH MORE THOUGHTS ON HOW YOU'RE MOVING FORWARD. AT ONE POINT, MICHELLE, WE RECEIVED A STRATEGIC PLAN FROM THE PROGRAM? YES. AND IS THAT EVEN FORTHCOMING? AGAIN, THAT WAS BASED. WELL, I SAY NO. THAT WAS BASED UPON BUILDING ESSENTIALLY BUILDING HOUSES OR LAND BANKING. AND SO I THINK THEY PUT THAT ON THE BACK BURNER. RIGHT. WE'RE NOT GOING TO YEAH, WE'RE NOT GOING TO BUILD HOUSES, BUT WE PROBABLY WILL COME BACK TO YOU WITH, WITH PROPOSALS ON HOW WE WOULD PARTICIPATE IN ELLIE MORGAN, FOR EXAMPLE. AND SO AND HOW AND WHO ALL IS INVOLVED IN THAT. AND ALSO CONCEPTS LIKE LAND BANKING COMMUNITY LAND TRUSTS. THAT'S THOSE ARE THE THOSE ARE VERY MUCH IN OUR WHEELHOUSE THAT WE WANT TO PURSUE AND SEE HOW THEY COULD HELP TO, TO, TO RESOLVE AND AT LEAST HELP THIS PROBLEM OF OF HOME OWNERSHIP IN THIS, IN THIS DEMOGRAPHIC. I STILL CURRENTLY BRING FUNDING BACK IN THE PROGRAM. I STILL I STILL WOULDN'T RULE OUT YEAH. I WOULDN'T RULE IT OUT. BUT, YOU KNOW, THERE'S SORT OF IT'S GOING TO BE RARE. DON'T RULE IT OUT. I WAS GOING TO SAY ONE OF THE THINGS OTHER THAN WHAT WE SAID, WE KIND OF SPECIFICALLY WOULD NOT DO. WE HAVE NOT RULED THAT OUT. AT FIRST, WE SAID INITIALLY BACK IN MARCH WE WEREN'T GOING TO DO INFILL, BUT THEN THE MARKET CHANGED AND IT CAME UP IN OUR LAST MEETING. SO WE'RE OPEN TO ALL OF THOSE IDEAS AND WE'RE TRYING TO KEEP AN EYE ON THEM, BECAUSE IF IT BECOMES AN OPPORTUNITY TO SEIZE THE OPPORTUNITY THAT YOU'RE GIVEN, IF THERE'S AN OPPORTUNITY BUT $900,000 IS A BUY, TOO MANY KNOW IT EITHER. SO ESPECIALLY THE GALVESTON ONE, WHERE EVERYTHING'S SO PERPETUAL. IN THE PAST, IT WAS THIS WAS ALL ABOUT FORECLOSURES. SO IT WAS USUALLY FORECLOSED PROPERTIES, WHICH WAS MAINLY LAND, YOU KNOW, THAT THEY WOULD GO IN AND GET IT IN. SO YOU'D SEE THE SECOND LIEN AT $8,000 OR 10,000. WELL, YOU KNOW, THE LAST TRANCHE OF, YOU KNOW, TRYING TO FIGURE THOSE THINGS OUT. THESE VERY TINY LOTS WERE GOING FOR $90,000. SO THAT'S WHEN WAS THE LAST TIME THAT Y'ALL ACQUIRED PROPERTY THAT WAY? 2018 THERE WAS A THERE WAS A SET OF FIVE HOUSES BETWEEN 2017 AND 2019 WHEN JOHN [06:15:05] LISTOWSKI WAS ACTIVE ON THE BOARD, AND HE ACTUALLY SPEARHEADED THE EFFORT. AND THERE WAS FIVE HOUSES BUILT NORTH OF BROADWAY AT 35TH STREET, AND 21 OR 2 I BOUGHT FOR TWO OF THEM. OH, REALLY? REALLY? YEAH. TO THOSE. NOT WITH JOHN, BUT I BUILT TWO. OH, YOU BUILT THAT? OH, I THOUGHT YOU SAID YOU BOUGHT THEM. YOU BUILT THEM? BUILT TWO OF THEM? YEAH. ON THE NORTH SIDE OF BROADWAY. NORTH SIDE OF BROADWAY? EXACTLY. AND THOSE ARE BEAUTIFUL HOUSES. AND THAT WAS A GREAT EFFORT. ESPECIALLY BEAUTIFUL HOUSES. THE TWO OF THEM ARE REAL LONG TIME AGO. I THINK IT WAS LIKE 2005 AND SIX. IT'S BEEN A WHILE. YEAH, I THINK THERE WAS A COUPLE OF TRANCHES OF THAT AND THE LAST ONES WERE IN THE WORD TRANCHE. WAY TOO MANY TIMES. BY THE WAY, HAVE YOU. YEAH. YEAH. THANK YOU FOR BEING HERE. I GREATLY APPRECIATE IT. PLEASE KEEP IT. JUST ONE OF THOSE WORDS. PLEASE. PLEASE KEEP HER UPDATED. YEAH. COME ON. BOB. GET WITH BOB AND COME BACK TO COUNCIL AND GIVE US AN UPDATE. WOULD YOU PLEASE? THANK YOU. THE NEXT, NEXT TIME WE COME, WE'LL BE ASKING FOR APPROVAL TO DO SOMETHING. SO WE'RE TRYING TO BIAS TOWARD ACTION. SOUNDS GREAT. GREAT. THANK YOU. SO I JUST WANT YOU TO KNOW THAT I'M LITERALLY TEXTING MY MIDDLE CHILD AND MY YOUNGEST GIRL RIGHT NOW. THIS IS A DOWN PAYMENT. YES. I DON'T KNOW IF Y'ALL ARE UP AND RUNNING YET, OR I TOLD THEM TO CALL Y'ALL, BUT YES. SOUNDS GOOD. YES. THAT PROGRAM IS UP AND RUNNING TODAY. BUT THE CLOSEST AGENT. THE CLOSEST LOAN AGENTS IN DICKINSON. YEAH, THAT'S ONE OF THE THINGS THAT WE, LIKE, I SAID WE WERE WORKING ON, IS MAKING SURE TO GET THAT CHANGED BECAUSE WE JUST STARTED THE PARTNERSHIP. SO WE NEED LOCAL ONE. OKAY. SO GOOD POINT. THANK YOU SO MUCH. APPRECIATE IT. THANK YOU VERY MUCH. THANK YOU. IT IS 3:31 P.M. [4. EXECUTIVE SESSION] PURSUANT TO TEXAS GOVERNMENT CODE 0.074 RELATED TO PERSONNEL MATTERS. THE COUNCIL WILL CONVENE AN EXECUTIVE SESSION TO DISCUSS THE POSSIBLE APPOINTMENT, EMPLOYMENT AND OR REASSIGNMENT OF ONE OF THE FOLLOWING CITY EMPLOYEES TO FILL THE POSITION AND PERFORM THE DUTIES OF THE CITY ATTORNEY. AT THE TIME, THE POSITION BECOMES VACANT FOR A PERIOD OF TIME TO BE SET BY COUNCIL FOR A BEVERLY WEST. DONNA FAIRWEATHER AND TREVOR FANNIN. WE ARE NOW IN EXECUTIVE SESSION. OR NOT, WE ARE NOW COUNCIL. WE ARE NOW IN OPEN SESSION. EXCUSE ME. COUNCIL OF HOLLAND. MURRAY. MURRAY. MURRAY. EXCUSE ME. WE ARE NOW TELEVISING. WE'RE IN OPEN SESSION. IT IS 340 3:54 P.M.. WE ARE NOW OUT OF EXECUTIVE SESSION AND WE WILL NOW BE MOVING INTO OPEN SESSION SHORTLY. AT OUR EXECUTIVE SESSION, WE DISCUSSED TWO CANDIDATES, TREVOR FANNING AND DONNA FAIRWEATHER. THE CANDIDATE, BEVERLY WEST. THEY HAVE. SHE HAS WITHDRAWN HER APPLICATION SO SHE WAS NOT DISCUSSED IN EXECUTIVE SESSION. WE WILL RECONVENE IN THE COUNCIL CHAMBERS IN APPROXIMATELY FIVE MINUTES. TELEVISING. GOOD AFTERNOON, EVERYONE THAT MAY BE WATCHING THIS TELECAST. WE HAVE NOW FINISHED OUR WORKSHOP SESSION FOR THE COUNCIL MEETING FOR AUGUST 14TH. IT IS THREE. IT IS 4 P.M.. WE ARE NOW GOING INTO OUR REGULAR SESSION ITEMS. [5. CONSENT ITEMS] LET'S MOVE TO ITEM FIVE A, PLEASE. ITEM FIVE CONSENT ITEMS AND WE HAVE THE CONSENT ITEMS ON THE SCREEN. DO YOU WANT ME TO READ THEM? IF YOU WOULD. SINCE WE HAVE JUST 25A CONSIDER FOR APPROVAL A CONTRACT TO RENEW VIDEO STREAMING SERVICES FOR CITY COUNCIL AND VARIOUS OTHER CITY BOARD MEETINGS WITH GRANICUS LLC, UTILIZING TIPS CONTRACT NUMBER 220105, AUTHORIZING THE CITY MANAGER TO ENTER INTO A THREE YEAR CONTRACT AND SIGN ALL DOCUMENTS UPON THE REVIEW AND APPROVAL OF THE CITY ATTORNEY. FIVE BE CONSIDERED FOR APPROVAL, STAFF AUGMENTATION SERVICES, AND PERMANENT PLACEMENT FEES THROUGH ROBERT HALF UTILIZING HVAC CONTRACT NUMBER RTS ZERO 625 IN THE AMOUNT OF 80,000 DID COUNCIL WANTED? DID ANYBODY ON COUNCIL WANT TO DISCUSS THESE INDIVIDUALLY? NO I DID YES. I WANTED TO JUST ASK QUESTIONS ABOUT ITEM FIVE FIVE. BE. YES. HOPE. YES, MA'AM. YES, SIR. SO JUST HELP ME UNDERSTAND. SO I GUESS I FORGET WHAT MEETING IT WAS, BUT WE APPROVED 60,000 BEFORE ON THE SAME EXACT POSITION. YOU APPROVED AS DECEMBER OF 24. AS IN THIS TEMPORARY SERVICE? [06:20:02] CORRECT. PROVIDED BY THE SAME ROBERT HALF. CORRECT. AND NOW WE'RE AT 80,000 FOR A FINDER'S FEE. SO IT'S TWO. SO THE TEMPORARY POSITION, WE STILL HAVE THAT EMPLOYEE THAT THAT INDIVIDUAL WORKING FOR US ON THE ERP PROJECT. AND SO WE INTEND TO EXTEND THEIR SERVICES. AND SO THAT IS ON THE TEMPORARY SERVICING SIDE OF IT. AND THEN THERE IS AN ADDITIONAL SIDE WHERE WE'RE LOOKING AT HIRING AN INFRASTRUCTURE ADMINISTRATOR POSITION. AND WE'RE REACHING OUT TO ROBERT HALF FOR PERMANENT PLACEMENT. AND SO THE STAFF REPORT COVERS BOTH OF THOSE. IT COVERS THE TEMPORARY EMPLOYEE. AND THEN IT COVERS FEES ASSOCIATED WITH FINDING AN INFRASTRUCTURE ADMINISTRATOR FOR THE CITY. WHAT'S THE BREAKDOWN? THE FINDER'S FEE IS ABOUT 20%. 20 TO 25% BASED ON THE SALARY OF THE INDIVIDUAL FOR PERMANENT PLACEMENT. AND THEY QUOTED US ABOUT $25 FOR THE POSITION THAT WE'RE TRYING TO HIRE FOR THE INFRASTRUCTURE ADMINISTRATOR. AND THEN THE OTHER FEES ARE FOR THE TEMPORARY SERVICES. BUT I JUST I THOUGHT I THOUGHT 55,000. I THOUGHT I SAW IT UP AS THE WRITE UP WAS TO REPLACE THE LONG HELD POSITION OF SOMEONE THAT HAD LEFT. IT DIDN'T SAY ANYTHING ABOUT TWO POSITIONS. I WAS JUST WANTED. IT DOES. IT'S A DIFFERENT PARAGRAPH AND I APOLOGIZE. THAT'S OKAY. I'LL JUST ASK. I JUST WANTED. YES, THERE IS A SECOND PARAGRAPH THAT THE WAY I LOOKED AT IS WE'RE SPENDING 140 GRAND TO FILL THE POSITION WITH THE TEMPORARY AND STILL HAVING TO LOOK FOR A FULL TIME. AND SO I JUST WANTED TO UNDERSTAND THAT. RIGHT. DO DIFFERENT OPERATIONS. SO I HAVE AN APPLICATION DIVISION THAT SUPPORTS A BROAD RANGE OF APPLICATIONS AROUND THE CITY. AND THIS PARTICULAR EMPLOYEE IS SUPPORTING OUR ERP SOFTWARE IMPLEMENTATION. THAT IS THE ONE THAT I CURRENTLY HAVE ON STAFF. WHEN WE WHEN THEY'RE STILL CONTRACT THEY'RE STILL CONTRACT. SO WHAT HAPPENS IN TEMPORARIES? I INTEND HOPEFULLY TO EMPLOY THE SERVICES OF THIS INDIVIDUAL ON A FULL TIME BASIS, BRING THEM ON BOARD WITH THE CITY. BUT WHAT HAPPENS IS YOU'RE PAYING A FEE FOR THAT INDIVIDUAL. OVER TIME, YOU GOT TO PAY HIM OFF. YOU GOT TO PAY OFF OVER HALF. I GET IT, I JUST I JUST WANT THANK YOU FOR THE EXPLANATION. I JUST UNDERSTOOD IT TO BE A SINGLE POSITION. IT MAKES ME FEEL BETTER. IT'S TO. AND IT'S UNDERSTOOD WITH THE TEMP. SO I JUST WANTED TO UNDERSTAND THAT. OKAY. ANYTHING ELSE? VERY GOOD. ANY OTHER QUESTIONS ON THESE ITEMS? I'M GOING TO ENTERTAIN A MOTION FOR APPROVAL. I'M GOING TO RECOMMEND APPROVAL OF ITEMS FIVE A AND FIVE B. IS THERE A SECOND? I'LL SECOND. SORRY. WHOA. THERE IS A SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? THAT IS UNANIMOUS. ITEM SIX A PLEASE, MA'AM. [6.A Consider For Approval An Ordinance Calling A Bond Election To Be Held Within The City Of Galveston, Texas To Fund Certain Public Improvements For Streets And Fire Facilities; Making Provisions For The Conduct And The Giving Of Notice Of The Election; And Containing Other Provisions Relating Thereto.] ITEM SIX A CONSIDER FOR APPROVAL. AN ORDINANCE CALLING A BOND ELECTION TO BE HELD WITHIN THE CITY OF GALVESTON, TEXAS, TO FUND CERTAIN PUBLIC IMPROVEMENTS FOR STREETS AND FIRE FACILITIES. MAKING PROVISIONS FOR THE CONDUCT AND THE GIVING OF NOTICE OF THE ELECTION AND CONTAINING OTHER PROVISIONS RELATING THERETO. THE PROPOSED ELECTION WILL BE HELD ON NOVEMBER 4TH, 2025 WITHIN THE CITY. THE PROPOSED PROPOSED PROPOSITIONS GENERALLY RELATE TO THE CONSTRUCTION OF PUBLIC IMPROVEMENTS FOR STREET AND FIRE FACILITIES. THE PROPOSED ELECTION ORDINANCE REFLECTING THE PROPOSED AMOUNTS AND SCOPE OF THE PROPOSITIONS IS AVAILABLE FOR REVIEW AT GALVESTON, TX OR UPON REQUEST TO THE CITY SECRETARY. THE FINAL AMOUNTS IN THE SCOPE OF ANY PROPOSITIONS TO BE PRESENTED TO THE VOTERS IS WITHIN THE DISCRETION OF THE CITY COUNCIL. TO START OUR DISCUSSION, I'D ENTERTAIN A MOTION. YES, SIR. I'D LIKE TO MAKE AN AMENDED MOTION DIFFERENT THAN WHAT'S BEEN READ. YES, SIR. I WOULD LIKE TO MAKE A MOTION TO CONSIDER FOR APPROVAL AN ORDINANCE CALLING A BOND ELECTION TO BE HELD WITHIN THE CITY OF GALVESTON. FOR THE FIRE STATION NUMBER TWO. AS RED AS A FIRE FACILITY. ELECTION ON WHAT DATE? NOVEMBER 4TH, 2025. ALL RIGHT. WE HAVE A MOTION FOR APPROVAL OF MOVING FORWARD WITH THE PROPOSITION FOR A BOND ELECTION ON FIRE STATION NUMBER TWO FOR NOVEMBER OF 2025. I'LL SECOND. WE HAVE A SECOND BY COUNCIL MEMBER FINKLEA. ANY DISCUSSION? YES, SIR. [06:25:02] I KNOW WE HAD DISCUSSED THIS, AND IT'S. WE HAD BEEN TALKING ABOUT IT WITH THE FIRE DEPARTMENT, AND YOU KNOW, I, I THINK IT'S OVERDUE FOR THAT FACILITY. I THINK IT HELPS CUT DOWN ON THE BURDEN THAT WE WOULD HAVE TO OVERCOME IF FOR PLANNING THAT FIRE STATION FOR NOVEMBER. SORRY. IT'S BEEN A LONG DAY. BUT I WOULD I WOULD SUPPORT THAT BECAUSE I THINK WE GAVE WORD TO OUR GUYS AT FIRE AND I THINK WE NEED TO MAKE GOOD ON THAT. ALL RIGHT. VERY GOOD. YES, SIR. SO, IS THAT WORDED? IS THAT CONSIDER FOR APPROVAL FOR THAT ORDINANCE? WORDED THE WAY IT SHOULD BE. YOUR AMENDMENT OR THE. MY AMENDMENT. MY MY STATEMENT. MY STATEMENT OF A STATEMENT OF MOTION. DIFFERING FROM WHAT THE ACTION ITEM WORDING WAS. JUST WANT TO ENSURE THAT THAT WORDING IS THE CORRECT WORDING FOR THE CALL TO VOTE. I MEAN, A CALL FOR A PROPOSITION TO VOTE. COUNCILMEMBER. FOR THE PROPOSITION FOR AN ELECTION. I'M SORRY. SO YOU WANTED TO AMEND THE MOTION ONLY? YES. YES. YES. OKAY. THANK YOU. VERY GOOD. WE HAVE A MOTION, DAVID. A QUESTION FOR STAFF, BRIAN. WITH THE PROPOSAL TO MOVE THIS TO NOVEMBER 4TH. IS THERE ANY ANY ADJUSTMENT THAT NEEDS TO BE DONE TO THE BUDGET AS PRESENTED IN ORDER TO ADDRESS FUTURE DESIGN NEEDS? IF IF THIS FAILS TO GO ON THE NOVEMBER 4TH BUDGET, WE WOULD HAVE TO DO SOMETHING DIFFERENT IN THE BUDGET. IF YOU WANTED TO PURSUE DESIGN THIS FISCAL YEAR, THE COMING FISCAL YEAR, IF APPROVED TO GO ON TO IF THIS MOTION IS APPROVED, THEN NO, THE BUDGET CAN STAND AS IS. YES, SIR. THANK YOU. COUNCIL MEMBER RAWLINS I APOLOGIZE. SO YOUR MOTION WILL NEED TO BE REQUIRE FACILITIES. PLURAL? YEAH, I ACTUALLY SAID PRIOR FACILITY. SO DO YOU WANT ME TO REREAD IT FOR YOU? YES, PLEASE. HERE WE GO. HELP ME CONSIDER FOR APPROVAL AN ORDINANCE CALLING A BOND ELECTION TO BE HELD WITHIN THE CITY OF GALVESTON AND TO FUND CERTAIN PUBLIC IMPROVEMENTS. TO BE INCLUDED AS FIRE FACILITIES. THE PROPOSED ELECTION WILL BE HELD ON NOVEMBER 4TH, 2025, WITHIN THE CITY OF GALVESTON. DO WE NEED TO DESIGNATE FIRE STATION NUMBER TWO? NO, IT'S FIRE FACILITIES. MAYOR. OKAY. MAYOR. CLARIFICATION. YES, SIR. SO COUNCILMEMBER RAWLINS, YOUR ACTION ITEM ESSENTIALLY JUST REMOVES THE WORDS FOR STREETS. CORRECT? NO. JUST STREETS. AND BECAUSE IT WOULD BE FOR FIRE FACILITIES, FUNDS, CERTAIN PUBLIC IMPROVEMENTS AND FIRE FACILITIES. SO LET ME REWARD THAT ONE MORE TIME. I'M I'M JUST TRYING TO MAKE IT AS SIMPLE AS POSSIBLE. IF ALL IT IS IS STRIKING. THOSE TWO WORDS MAKE IT REALLY EASY AGAIN. THANKS, DAVE. CONSIDER FOR APPROVAL OF AN ORDINANCE CALLING A BOND ELECTION TO BE HELD WITHIN THE CITY OF GALVESTON, TEXAS, TO FUND PUBLIC IMPROVEMENTS. PUBLIC IMPROVEMENTS AS FIRE FACILITIES FOR FIRE FACILITIES. THE PROPOSED ELECTION WILL BE HELD ON NOVEMBER 4TH, 2024, 2025, WITHIN THE CITY OF GALVESTON, TEXAS. AND DAVID, THAT'S YOUR SECOND. YES, YES, THAT'S THAT'S MY SECOND. ALL RIGHT. WE HAVE A MOTION AND CLARIFIED MOTION. AND A SECOND. ANY DISCUSSION? ALL THOSE IN FAVOR? THAT IS UNANIMOUS. THANK YOU. ITEM SIX B, PLEASE. [6.B Consider a motion to define further steps to be taken to name a replacement for the current City Attorney upon his departure] ITEM SIX B CONSIDER A MOTION TO DEFINE FURTHER STEPS TO BE TAKEN TO NAME A REPLACEMENT FOR THE CURRENT CITY ATTORNEY UPON HIS DEPARTURE IN OUR EXECUTIVE SESSION, WE HAD DOWN TO DISCUSS THREE INDIVIDUALS THAT. FOR THE INTERIM CITY ATTORNEY POSITION MISS BEVERLY WEST HAS WITHDRAWN HER APPLICATION. SO WE DISCUSSED TWO INDIVIDUALS. AND BECAUSE OF THAT, I'M GOING TO MAKE A MOTION TO INTERVIEW DONNA FAIRWEATHER AND TREVOR FANNING AT CITY COUNCIL'S AUGUST 28TH MEETING AND TO HAVE AN ACTION ITEM AT THAT [06:30:05] SAME MEETING FOR THE APPOINTMENT OF AN INTERIM CITY ATTORNEY. IS THERE A SECOND? I'LL SECOND. I HAVE A SECOND. COUNCILMAN PEREIRA AND DISCUSSION. CLAIRE, POINT OF CLARIFICATION. THE INTERVIEWS WOULD OCCUR IN THE WORKSHOP IN THE MORNING. YES, SIR. THEY WOULD. THE ACTION ITEM WOULD BE ON THE COUNCIL AGENDA IN THE EVENING. YES, SIR. VERY GOOD. THANK YOU. YES. WOULD YOU ENTERTAIN AN AMENDMENT TO OR WOULD THAT BE AT THE THE COUNCIL MEETING FOR A TIME LIMIT OF A YEAR, NOT TO EXCEED 18 MONTHS FOR A MINIMUM OF OR A YEAR, OR THAT WOULD BE AT THE NEXT, THE NEXT MEETING? IT WAS MY INTENTION TO HAVE THAT AT OUR NEXT MEETING AFTER WE DISCUSS IT, TO DETERMINE THE LENGTH. THANK YOU. YES, MA'AM. ALL RIGHT. WE HAVE A MOTION IN A SECOND. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR? THAT IS UNANIMOUSLY APPROVED. THANK YOU. ITEM SEVEN IS RECEIVING. [7.A Tax Year 2025 Certified Roll and 2025 Galveston Certified TNT Calculations] WHILE WE RECEIVE THE TAX YEAR 25 2025 CERTIFIED ROLL IN 2025 GALVESTON CERTIFIED TNT CALCULATIONS. WE HAVE GONE THROUGH ALL OF THE ITEMS ON OUR AGENDA. WE ARE ADJOURNED. THANK YOU. * This transcript was compiled from uncorrected Closed Captioning.