AGAIN, THANK YOU FOR YOUR PATIENCE, I'D LIKE TO CALL THE MEETING TO ORDER. [00:00:04] AND AT THIS TIME, WE'RE GOING TO HAVE A PROCLAMATION AND THIS IS FOR ARBOR DAY [PROCLAMATION] AND AMARILLO, AND IT'S GOING TO BE READ BY COUNCIL MEMBER DR. EDDY SAUER. OK, THANK YOU. ALL RIGHT. IS THERE ANYBODY HERE FOR ARBOR DAY? OF COURSE, I WOULD EXPECT NOTHING LESS. OK? WHEREAS ON APRIL 7TH, 1872, THE FIRST ARBOR DAY IN AMERICA WAS OBSERVED, JAY STERLING MORTON, A NEBRASKA JOURNALIST, HAD PROPOSED TO THE NEBRASKA BOARD OF AGRICULTURE THAT A SPECIAL DAY BE SET ASIDE FOR THE PLANNING OF MORE THAN ONE MILLION TREES IN NEBRASKA, WHEREAS ARBOR DAY IS NOW OBSERVED THROUGHOUT THE NATION AND THE WORLD. AND WHEREAS ARBOR DAY IS CELEBRATED THE FIRST FRIDAY IN NOVEMBER IN TEXAS. AND WHEREAS URBAN TREES INCREASE PROPERTY VALUES, ENHANCE THE ECONOMIC VITALITY OF BUSINESS AREAS AND BEAUTIFY OUR OWN COMMUNITY. AND WHEREAS WHEREVER THEY ARE PLANTED ARE A SOURCE OF JOY AND SPIRITUAL RENEWAL. WHEREAS AMARILLO IS RECOGNIZED AS A TREE CITY USA FOR THE TWENTY FIFTH YEAR BY THE NATIONAL ARBOR DAY FOUNDATION AND TEXAS FOREST SERVICE. NOW, THEREFORE, WE MAYOR AND CITY COUNCIL OF THE CITY OF AMARILLO OF TEXAS DO HEREBY PROCLAIM NOVEMBER 5TH AS ARBOR DAY AND AMARILLO GIVEN UNDER OUR HANDS AND SEAL OF OFFICE THIS 14TH DAY OF DECEMBER 2021 THE HONORABLE GINGER NELSON COLE STANLEY FREDA OF POWELL, EDDY SAUER AND HOWARD SMITH. AND IF ANY PLACE NEEDS ARBOR DAY, AMARILLO TEXAS NEEDS ARBOR DAY, DON'T WE? I'LL LET YOU SAY A FEW WORDS IF YOU WOULD LIKE. YEAH, WE'RE JUST EXCITED AS A DEPARTMENT TO BE SEEKING TREE CITY USA DESIGNATION FOR THE 25TH YEAR. OBVIOUSLY, WE KNOW THAT TREES DO A LOT OF DIFFERENT THINGS FOR OUR COMMUNITY. THEY REDUCE SOUND IN URBAN AREAS. TREES REDUCE THE TEMPERATURE IN NEIGHBORHOODS BY APPROXIMATELY NINE DEGREES. OBVIOUSLY, THEY ARE GOOD FOR ENERGY SAVINGS IN THE SUMMER. THEY COOL HOUSES AND IN THE WINTER THEY OBVIOUSLY BLOCK THE WINDS. WE ALSO KNOW THAT TREES INCREASE PROPERTY VALUES, SO WE'RE EXCITED TO SEEK THAT DESIGNATION AGAIN FOR THE 25TH YEAR. SO THANK YOU. THANK YOU, COUNCIL MEMBER DR. EDDY SAUER, AND ALSO THANK YOU, MICAH KASHUBA. NEXT, WE HAVE A PROCLAMATION FOR OH, I'M SORRY, WE NEED TO GET A PICTURE. EXCUSE ME. YES, I GET IT. GET IT. SUSAN? OK, THANK YOU. NEXT, WE HAVE A PROCLAMATION FOR THE OLDER DRIVER SAFETY AWARENESS WEEK, AND I'M GOING TO ASK COUNCIL MEMBER COLE STANLEY IF HE WOULD COME UP AND READ THIS PROCLAMATION FOR US. THANK YOU. DO WE HAVE ANYONE HERE TODAY FOR THE OLDER DRIVER SAFETY AWARENESS WEEK PROCLAMATION OTHER THAN MYSELF? MY YOUNGEST IS 16, SHE SAYS I'M AN OLDER DRIVER, SO I DRIVE LIKE ONE. I HAVE A STATEMENT HERE FROM LOVISA LOVISA FROM LOVISA MATHEWS. SHE COULDN'T BE HERE WITH US, BUT SHE SAYS, "THANK YOU SO MUCH TO MAYOR NELSON AND THE CITY COUNCIL FOR MAKING THIS ISSUE A TRUE CONCERN AND BRINGING IT TO THE ATTENTION OF THIS COMMUNITY." TXDOT WILL BE STARTING UP THE SENIOR CAR FIT PROGRAM IN 2022 AND WE LOOK FORWARD TO HELPING THEM KNOW THEIR CAR AND LEARN NEW TECHNIQUES TO HELP THEM DRIVE SAFER. SO TODAY WE HAVE A PROCLAMATION FROM THE CITY OF AMARILLO AND THE CITY COUNCIL, WHEREAS ACCORDING TO THE CDC, ONE IN SIX DRIVERS IN THE UNITED STATES IS 65 YEARS OLD OR OLDER. AND OLDER DRIVERS ARE MORE THAN TWICE AS LIKELY TO REPORT HAVING A MEDICAL PROBLEM THAT MAKES IT DIFFICULT TO TRAVEL AS COMPARED WITH DRIVERS UNDER THE AGE OF SIXTY FOUR. AND WHEREAS THE THE AMERICAN OCCUPATIONAL THERAPY ASSOCIATION AIMS TO PROMOTE UNDERSTANDING OF THE IMPORTANCE OF MOBILITY AND TRANSPORTATION TO ENSURE OLDER ADULTS REMAIN ACTIVE IN COMMUNITY WITH THE CONFIDENCE THAT TRANSPORTATION WILL NOT BE [00:05:03] THE BARRIER TO STRAND THEM AT HOME. AND WHEREAS IT IS A FACT OF LIFE THAT PEOPLE GROW OLDER EVERY DAY, AND WITH INCREASING AGE COMES CHANGES IN PHYSICAL, MENTAL AND SENSORY ABILITIES THAT CAN CHANGE A PERSON'S CONTINUED ABILITY TO DRIVE SAFELY. AND WHEREAS THE TEXAS DEPARTMENT OF TRANSPORTATION, IN CONJUNCTION WITH THE AMERICAN OCCUPATIONAL THERAPY ASSOCIATION, WANTS TO BRING AWARENESS TO THE IMPORTANCE OF DISCUSSING WITH THE IMPORTANT SENIOR IN YOUR LIFE, THE NECESSITY OF PHYSICAL AND MENTAL HEALTH TO PRESERVE ESSENTIAL DRIVING SKILLS. WHEREAS WITH THIS APPROACH, THE OLDER ADULT IS EMPOWERED TO FOCUS ON THE HOPE OF CONTINUED PARTICIPATION IN THE COMMUNITY AS A DRIVER. NOW, THEREFORE, WE MAYOR AND CITY COUNCIL OF THE CITY OF AMARILLO, TEXAS, DO HEREBY RECOGNIZE THE WEEK OF DECEMBER 6TH THROUGH DECEMBER 10TH, 2021 AS OLDER DRIVER SAFETY AWARENESS WEEK AND ENCOURAGE EVERYONE TO RECOGNIZE THE IMPORTANCE OF LEARNING ABOUT AND ACCESSING THE EDUCATION OPTIONS AND SOLUTIONS FOR OUR OLDER DRIVERS GIVEN UNDER OUR HANDS AND SEAL OF OFFICE THIS DAY, MAYOR AND YOUR CITY COUNCIL. THANK YOU. SO WE NEED TO GET A PICTURE. OK. OK, HOLD ON. SO DO IT LIKE. I. HANG ON. OK, THANK YOU. AT THIS PARTICULAR TIME, I'D LIKE TO TURN THE MEETING BACK OVER TO MAYOR NELSON. THANK YOU, MAYOR PRO TEM, WE ARE DEMONSTRATING FLEXIBILITY TODAY WITH ALL OF THE SCHEDULED CHALLENGES AND OTHER THINGS, SO APPRECIATE EVERYONE'S PATIENCE TODAY. WE CAN MOVE RIGHT INTO THE NEXT PORTION OF OUR AGENDA AND THAT IS PUBLIC ADDRESS. [PUBLIC ADDRESS] DO WE HAVE ANYONE SIGNED UP? WE HAVE TWO PEOPLE SIGNED UP. THANK YOU. I'LL PASS THE MICROPHONE TO YOU THEN. GOOD AFTERNOON, IS THIS. HELLO? GOOD AFTERNOON. THANK YOU FOR PARTICIPATING IN TODAY'S CITY COUNCIL MEETING. YOUR INPUT AND YOUR OPINIONS ARE IMPORTANT TO US AND WE'RE GLAD YOU'RE HERE TO SHARE THEM . AT EACH POSTED MEETING, WE INVITE OUR FELLOW COMMUNITY MEMBERS TO ADDRESS CITY COUNCIL REGARDING POSTED AGENDA ITEMS. EVERY SPEAKER HAS THREE MINUTES TO ADDRESS THE COUNCIL AT THE END OF TWO AND A HALF MINUTES A WARNING BEEP WILL SOUND TO ALERT YOU THAT YOU HAVE 30 SECONDS LEFT TO WRAP UP YOUR THOUGHTS. WE ASK THAT YOU STAY WITHIN THE THREE MINUTES ALLOTTED SPEAKER. SPEAKERS ARE ASKED TO LIMIT THEIR COMMENTS TO ITEMS ON THE POSTED AGENDA. DOING SO HELPS THE CITY COUNCIL ENSURE WE ARE FOLLOWING THE OPEN MEETINGS ACT AND ARE ABLE TO HAVE AN EFFECTIVE MEETING FOR ALL. WHEN YOU COME TO THE MICROPHONE, PLEASE STATE YOUR NAME AND WHETHER YOU LIVE WITHIN THE AMARILLO CITY LIMITS. AGAIN, THANK YOU FOR BEING HERE TODAY TO SHARE YOUR THOUGHTS WITH THE CITY COUNCIL. COUNCII, YOU DID, WE DID HAVE SOMEONE SIGN UP WHO HAD TO LEAVE IN HIS PACKET IS AT YOUR DESK. SO FIRST UP, WE HAVE MR. DEEPAK PATEL. HE'S SPEAKING ON ITEMS LM AND N. I AM THE SECOND SPEAKER ON THERE, I BELIEVE. MY NAME IS AL PATEL. OK. WELL, HELLO, AL. OK, THAT'S JUST FINE. WELCOME, MR. PATEL. THANK YOU, COUNCIL MEMBER. HOPE EVERYONE IS DOING WELL. WE APPRECIATE YOUR TIME AS USUAL ON EVERYTHING YOU DO FOR OUR CITY. EXCUSE ME, AL, COULD I GET YOU TO TURN THE MICROPHONE TOWARDS YOU SO THAT SO THAT THE CITIZENS AND THE AUDIENCE THAT ARE LISTENING CAN HEAR YOU? THANK YOU, SIR. YES. OK, I'LL START AGAIN, THANK YOU CITY COUNCIL MEMBERS AND EVERYBODY HERE, THANK YOU FOR YOUR TIME. WE APPRECIATE EVERYTHING THAT YOU DO FOR OUR CITY. AND HAPPY HOLIDAYS. I HOPE EVERYONE IS HAVING A GOOD ONE. FIRST, I WOULD LIKE TO NAME MY NAME IS AL PATEL. I LIVE IN THE CITY LIMITS OF AMARILLO. AND THIS IS IN REGARDS TO THE STUFF THAT'S GOING ON WITH THE EMBASSY HOTEL RIGHT NOW AS A SALE IS GOING ON. FIRST, I WOULD LIKE TO KNOW WHO ACTUALLY OWNS THE FIRST FLOOR OF THE HOTEL AND THAT WHOLE FIRST GROUND, WHO IS ACTUALLY OWNING THAT, THAT PART OF IT. IT'S VERY INTERESTING AS WE GO THROUGH THIS STUFF THAT WHEN WE INITIALLY STARTED [00:10:03] DOWN THE PATH OF CREATING THIS HOTEL AND THE ALL THE THINGS THAT WE HAD TO DO TO GET EVERYTHING WORKING, WE, I THINK, LOST SOME SIGHT AS TO WHAT ACTUALLY HAPPENED ON THE FIRST FLOOR OF THAT. THE PUBLIC, ACCORDING TO ARTICLE NINE OF THE CONSTRUCTION AND PROJECT IMPROVEMENTS IN GENERAL WORK AGREEMENT PAGE 20. THERE WAS, ACCORDING TO [INAUDIBLE] PAUL, NINE POINT ONE POINT TWO LINE ITEM NUMBER C, A PUBLIC PASSAGEWAY THROUGH THE HOTEL FACILITY, PEDESTRIAN TRAFFIC BETWEEN THE PARKING GARAGE AND THE AMARILLO GLOBE NEWS CENTER WAS TO BE CREATED. HOWEVER, WHEN WE LOOK AT THE THE HOTEL NOW AND THE FIRST FLOOR THAT WE ARE NOT SEEING ANY DEMARCATION OF THAT, THERE IS NO SIGNS OF ANY KIND OF PUBLIC PASSAGEWAY FROM THE GLOBE, NEW CENTER COMING THROUGH AND GOING TO THE OTHER SIDE OF IT, WHICH WAS INITIALLY STATED IN OUR AGREEMENT WITH THE CITY AND THE GLOBE NEWS CENTER. ALSO, ACCORDING TO ARTICLE 13, OK. PAGE NUMBER 40 LINE ITEM THIRTEEN POINT ONE POINT ONE. IT ALSO SAYS IN WHICH IS THE IMPOSITIONS OF LEASED PREMISES, OK, THAT THE LANDLORD ACKNOWLEDGES THAT TENANT WILL BE SEEKING TAX EXEMPTION FOR FLOORS ONE AND TWO OF THE HOTEL PREMISE USED FOR THEIR PUBLIC MEETING SPACE AND FOR PUBLIC PASSAGE WAY THROUGH THE HOTEL, FACILITATING PEDESTRIAN TRAFFIC BETWEEN THE PARKING GARAGE AND AMARILLO GLOBE NEWS CENTER. RIGHT NOW, AS WE SIT AND THINGS ARE GOING FORWARD, WE'RE TRYING TO UNDERSTAND EXACTLY WHAT IS GOING ON. WHAT IS THE ACTUAL AGREEMENT BETWEEN THE CITY, THE SALE, THE FIRST FLOOR, HOW IS EVERYTHING STRUCTURED AS YOU KNOW, THINGS ARE MOVING FORWARD AND WE WOULD LIKE TO GET SOME CLARIFICATION ON THAT, THAT PARTICULAR PART. OK. ANYBODY HAVE ANY QUESTIONS FOR ME? I GUESS NOT. THANK YOU VERY MUCH. ALL RIGHT. THANK YOU, MR. PATEL. NEXT UP, WE HAVE DEEPAK PATEL ALSO SPEAKING ON ITEMS L, M AND N. GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS AND CITY OF AMARILLO STAFF MEMBERS. MY NAME IS DEEPAK PATEL, 46 COLONIAL DRIVE, AMARILLO, TEXAS. I AM GLAD IN THIS, IN THIS DEATH 2015 AND 16, I PROTEST EMBASSY SUITES CONVENTION HOTELS PROJECT. FIRST TIME I REQUEST TO THE CITY, AUCTIONED THE LAND. SOMEONE BUILD THE HOTELS AND, YOU KNOW, WORRY ABOUT ANY TAX BREAK OR ANYTHING. AND THEN AFTER I THINK SIX HOTEL OPENING AMARILLO AFTER 2017 AND STILL UNDER MAYBE EIGHT OR 10 PIPELINES. SO I'M GLAD. SO WHAT I'M SAYING THAT TIME IS CITY NOT MAKE ANY SINGLE DIME FOR THIS HOTEL PROJECT. CITY LOSE THE MONEY AND ANYONE PROVE CAUSE WE MAKES GOOD MONEY FROM THIS CONVENTION HOTEL PROJECT, LET ME KNOW. PLUS, WE LOSE EVERY YEAR OCCUPANCY TAX REBATE STATE OCCUPANCY TAX REBATE ALMOST 15 PERCENT TAX REBATE GOES TO THE HOTEL'S OWNERS TO PAY THEIR PAY THEIR DEBT OF THE HOTEL DEBT. WHAT I'M SAYING? SIMPLE THING THIS HOTEL OPEN AS A PODIUM AND HOTELS. I DON'T KNOW CITY CODE ENFORCEMENT. WE DON'T CHECK HOW THEY ISSUE THE CO WITHOUT CHECKING TRIPLE A DIAMOND RATING. HERE IS A CITY OF AMARILLO 2015-16. [INAUDIBLE] EVERY TOWN MEETINGS, HERITAGE HALL MEETINGS, THEY PUBLISH EVERY LIBRARY MEETINGS GET THESE HOTELS HELP AROUND THE AREAS. ALL THESE HOTELS BOOK WEEKEND AND WE JUST LIKE GROWTH OF AMARILLO ALMOST JUST LIKE JUMP. WE NEVER SINGLE ANY CONVENTION WE CATCH FROM THESE HOTELS CITYWIDE CONVENTION AND WE LOSE MONEY. WE LOSE THE PROPERTY TAX AND THE POOR NINE-MONTH HOTELS. THEY'RE NOT AS OPEN AS A FOUR DIAMOND HOTEL. WHAT HAPPENS? THEY COMPETE WITH THE JUST LIKE LOCAL SMALL HOTELS, JUST LIKE BEST WESTERN COMFORT SUITES. THE RATING JUST LIKE UNDER $100 A RATE, AND THEY JUST COMPETE WITH THE LOCAL MARKET. THEY GET THE GOOD BUSINESS, LOCAL AMARILLO PEOPLE, JUST HARDWORKING TAXPAYER HOTELIERS LOSING THE BUSINESS BECAUSE THIS HOTEL DOES NOT BRING ANY CONVENTION. AND 1984 HILTON HAVE A FIRST STEP IN A RAW STATE. HAMPTON INN AND SUITES THEY BUILT. SO THIS IS NOT NEW PRODUCT FOR THE CITY OF AMARILLO. OTHERWISE SOMETIMES WESTIN HOTEL OR W HOTELS COMING DOWN. THERE ARE SOME ON CUSTOMERS FILES, BUT WE HAVE NEVER RECEIVED ANY BENEFIT FROM THESE HOTELS AND THIS IS A BURDEN NEXT 20 YEARS FOR THIS TOWN. THANK YOU. THANK YOU. THANK YOU, MR. PATEL. THAT CONCLUDES OUR PUBLIC ADDRESS PORTION. [00:15:04] OK, THANK YOU. AT THIS TIME, I'M GOING TO PASS THE MICROPHONE TO THE CITY MANAGER FOR A COUPLE OF STAFF ANNOUNCEMENTS. ALL RIGHT, THANK YOU, MAYOR. FIRST, I WANTED TO INTRODUCE AND I APOLOGIZE, I'M THINKING SLOWLY ON THE FLY, IT'S SUPPOSED TO HAPPEN A LOT FASTER THAN THAT. I'D LIKE TO BRING MICHAEL KASHUBA UP HERE TO MAKE INTRODUCTION OF OUR NEW ASSISTANT DIRECTOR OF PARKS AND RECREATION, I LIKE TO MAKE SURE THAT WE GET INTRODUCED TO OUR NEW DIRECTORS AND ASSISTANT DIRECTORS EVERY TIME WE HAVE NEW FACES. THIS IS NOT A NEW FACE, BUT IT MIGHT BE A NEW FACE TO COUNCIL, MICHAEL. MAYOR, COUNCIL, MICHAEL KASHUBA, DIRECTOR OF PARKS AND RECREATION. TODAY, WE'RE EXCITED TO ANNOUNCE OFFICIALLY TO THE COUNCIL. KRISTIN WOOLBACK IS OUR NEW ASSISTANT DIRECTOR OF PARKS AND RECREATION. SHE JOINED THE DEPARTMENT IN JANUARY OF 2019 AS A MARKETING COORDINATOR. SHE WAS PROMOTED TO THE COORDINATOR OF PUBLIC RELATIONS AND PROGRAMS IN NOVEMBER OF 19. SHE REALLY HAS A GREAT GRASP ON THE CHALLENGES AND OPPORTUNITIES FACING OUR DEPARTMENT, AND SO WE'RE EXCITED TO PROMOTE HER TO ASSISTANT DIRECTOR. SHE STUDIED COMMUNICATIONS AT THE UNIVERSITY OF HOUSTON AND WEST TEXAS A&M, SO WE'RE EXCITED TO HAVE HER STEP INTO HER NEW ROLE. SO YES, I SEE HER. STAND UP KRISTEN. I'M KIND OF LEADING QUESTIONS. OH, YEAH, OK. YEAH, KRISTEN'S RIGHT THERE. THANK YOU. WELCOME, KRISTEN. YEAH, WE'RE EXCITED TO HAVE YOU, KRISTEN. WELL, NOT WELCOME, BUT WELCOME TO THE NEW ROLE, YEAH. ANOTHER THING I JUST WANTED TO TOUCH ON VERY QUICKLY MAYOR, IS THE WEATHER CONDITIONS THAT WE WERE EXPECTING TOMORROW WANT TO JUST MAKE EVERYONE AWARE THAT WE'RE GOING TO HAVE A RED FLAG, RED FLAG, THREAT LEVEL INDEX OR THREAT INDEX OF SIX. THAT MEANS THAT WE'RE GOING TO HAVE MUCH WORSE POTENTIAL FOR SEVERE FIRE CONDITIONS THAN LAST FRIDAY, WHERE WE HAD THE VERY HEAVY WINDS WHERE WE LOST ONE OF THE POLES AT JOHN STIFF, THE LIGHT STANDARDS. AFD IS GOING TO HAVE A SIGNIFICANT RAMP UP OF STAFFING AND APPARATUS. WE'RE ALSO GOING TO BE COORDINATING WITH THE STATE. THEY'RE GOING TO BE BRINGING IN STRIKE TEAMS AND ADDITIONAL EQUIPMENT INTO THE AREA. BUT THE TAKEAWAY OF THAT FOR CITIZENS WHO ARE WATCHING OR PEOPLE THAT YOU MIGHT COMMUNICATE WITH IN PREPARATION FOR TOMORROW IS TO TAKE EVERY POSSIBLE STEP TO PREVENT FIRES, TO NOT CREATE SITUATIONS THAT WOULD CAUSE A FIRE AND TO BE VERY AWARE WHEN YOU SEE SMOKE OR SOMETHING LIKE THAT TO CALL 9-1-1 AND REPORT IT. SO ANYTIME WE HAVE A SITUATION WHERE IT'S IT'S MARKEDLY DIFFERENT THAN THE REST OF THE TIME, WE WANT TO MAKE SURE THAT PEOPLE ARE AWARE. FIRE DEPARTMENT IS SENDING OUT A PRESS RELEASE. THE CITY PROPER IS SENDING OUT A PRESS RELEASE ON EVERY ONE OF OUR CHANNELS SO THAT WE CAN MAKE SURE THAT PEOPLE ARE AWARE AND TAKE NECESSARY PRECAUTIONS. THANK YOU, CITY MANAGER. WE CERTAINLY APPRECIATE THOSE FIRST RESPONDERS IN THE FIRE DEPARTMENT IN PARTICULAR. FOR ALL THE WORK THAT I'VE HAD MANY CITIZENS COMMENT ON THE WORK THEY DID LAST FRIDAY AND A LOT OF WHAT THEY DID WAS PROTECT US FROM THINGS THAT DIDN'T HAPPEN. SO IT'S IT'S HARD FOR PEOPLE TO EVEN KNOW THEIR WORK, BUT WE REALLY DO APPRECIATE IT. WE KNOW THEY'LL BE READY TO DO WHATEVER'S NECESSARY TO INCREDIBLY BUSY. LAST FRIDAY, I KNOW THERE WAS NOTHING HUGE, BUT WE HAD A GRASS FIRE AT ONE OF THE GOLF COURSES WE HAD IN THIS STRUCTURE CALLS THAT THEY HAD TO GO TO. AND THEN JUST OTHER EMERGENCIES. THE GOLF COURSE FIRE WAS HUGE. I MEAN, YOU KNOW, HAD IT NOT BEEN UNDER CONTROL, RIGHT? OK, WE'LL GET INTO THE REST OF THE AGENDA NOW. [1.A. Review agenda items for regular meeting and attachments;] ITEM 1A IS TO REVIEW FOR ANY QUESTIONS ON THE REGULAR MEETING OR ATTACHMENT PART OF THE AGENDA. ANYBODY HAVE ANYTHING UP FRONT THEY NEED MORE INFORMATION ON BEFORE WE GET STARTED. OK. YES. THANK YOU. SO I HAVE ONE THAT I WOULD LIKE TO BE CLARIFIED OR WOULD YOU RATHER WAIT UNTIL WE GET TO THE APPROVAL OF CONSENT? IT'S OK. OK, DO IT NOW. SO I'VE HAD A COUPLE OF CITIZENS CONTACT ME JUST A LITTLE BIT ABOUT. THAT'S ON THE CONSENT AGENDA WOULD BE ITEM K, THE VACCINE ANNUAL CONTRACT AND THE FACT THAT IT WAS AWARDED TO MINNESOTA AND NOT AWARDED TO EITHER SOMEONE LOCAL OR AT LEAST SOMEONE WITHIN THE STATE OF TEXAS. SO I'VE CALLED AND THE CITY MANAGER AND I HAD A DISCUSSION ABOUT THAT, AND I WOULD REALLY APPRECIATE IT IF YOU WOULD GIVE EVERYBODY ELSE THE CITIZENS A CLARIFICATION FOR WHAT ACTUALLY IS OCCURRING AND WHY THIS IS THE WAY THAT IT IS. AND SO I'LL GIVE YOU A LITTLE BRIEF EXPLANATION. IF Y'ALL HAVE QUESTIONS, I CAN ANSWER THOSE OR I CAN BRING UP LAURA OR TRENT OR [00:20:05] SOMEBODY TO ANSWER QUESTIONS ON HOW WE PROCURED THIS CONTRACT. IT'S A STATE CO-OP CONTRACT, SO WE GET BETTER PRICING BECAUSE OF THE EXTREMELY LARGE QUANTITY OF VACCINATIONS THAT ARE PURCHASED THROUGH THE STATE BY THE STATE WHO RUNS ALL OF THE THE RURAL PUBLIC HEALTH AUTHORITIES AND THROUGH THE STATE BY ALL OF THE OTHER LARGE JURISDICTIONS THAT PURCHASE VACCINATIONS THROUGH THIS CONTRACT. SO IT'S AN INCREDIBLY LARGE QUANTITY COMING THROUGH MULTIPLE ENTITIES BUYING OFF THE STATE CONTRACT ALONGSIDE THE STATE OF TEXAS THAT MAKES THE PRICING SO GOOD. SO THAT'S WHY WE WENT WITH THAT CONTRACT. WE CAN UTILIZE ANY STATE CONTRACT OR OTHER MUNICIPALITY CONTRACT THROUGH BECAUSE THEY'VE GONE THROUGH THE STATE OF TEXAS BID PROCESS. SO THAT'S WHY WE DID IT. I'M NOT AWARE OF OF ANYONE LOCAL WHO HAS EXPRESSED INTEREST IN THIS BUSINESS. WE HAVE THAT. WE CAN ALWAYS EVALUATE THAT GOING FORWARD. YEAH, THAT THIS, IN ESSENCE, IS KIND OF LIKE A COSTCO PRICE OR A WAL-MART PRICE FOR SURE. FOR SURE. IT'S A DEFINITE MASS PURCHASE BENEFIT. AND SO THE OTHER THING ON THIS IS THIS IS ALSO THIS. SO I THINK SOME PEOPLE MIGHT IMMEDIATELY SAY, WELL, IS THIS COVID? AND THIS REALLY IS NOT COVID AT ALL. THIS IS LIKE SHINGLES AND FLU AND ALL OF THE AND REALLY THE OTHER DAY TO DAY VACCINES THAT ARE GOING ON THAT ARE THAT WE PROVIDE THROUGH THE HEALTH DEPARTMENT FOR CHILDREN AND FOR ALL OF THOSE OTHER THINGS CORRECT? CORRECT, IT IS NOT COVID. IT'S A WIDE RANGE OF OTHER VACCINATIONS THAT WE PROVIDE THROUGH PUBLIC HEALTH. EXCELLENT. ANY FOLLOW UP QUESTIONS AND WE WOULDN'T EVER GET A PRICE LIKE THIS IF OR WE WOULDN'T. IT'S VERY LIKELY, I THINK IT'S VERY OBVIOUS THAT WE WOULDN'T GET A PRICE LIKE LIST BASED ON OUR VOLUME ONLY. OK. THANK YOU, DR. SAUER. [1.B. Updates from Councilmembers serving on outside boards and commissions] LET'S MOVE ON TO UPDATES FROM COUNCIL MEMBER SERVING ON OUTSIDE BOARDS AND COMMISSIONS. THE FIRST IS LOCAL GOVERNMENT CORPORATION. WE HAVE TWO BOARD MEMBERS THERE, BOTH COUNCIL MEMBER STANLEY AND COUNCIL MEMBER SMITH SERVE ON THAT BOARD. COUNCIL MEMBER SMITH COULDN'T BE WITH US TODAY, SO I'M ASSUMING COUNCIL MEMBER STANLEY HAS THAT COVERED. STANLEY DOESN'T START UNTIL JANUARY. OH, THAT'S RIGHT. I HOPE HE WENT BECAUSE I FORGOT IT WAS A JANUARY START TIME FRAME. THAT WAS AN EMERGENCY MEETING AND I COULD NOT MAKE THE EMERGENCY MEETING, BUT WE HAVE ANDREW TO GIVE US A BRIEF UPDATE. GREAT. DURING THIS UPDATE, ANDREW CAN ADDRESS ANY COMMENTS THAT WERE MADE ABOUT EMBASSY OR CONCERNS THAT WERE EXPRESSED ABOUT EMBASSY, SO WE CAN ADDRESS THOSE CONCERNS AND [INAUDIBLE]. YEAH, IF YOU DON'T MIND, ANDREW, JUST THE QUESTIONS THAT WERE ASKED DURING THE PUBLIC COMMENT PERIOD IN ITS ANSWERS YOU HAVE DURING THE FIRST FLOOR ALWAYS DOESN'T HAVE TO BE STRAIGHT. DOES IT HAVE TO HAVE SIGNAGE COMMENT ABOUT THE FOUR DIAMONDS? SURE. SO AT THE LOCAL GOVERNMENT CORPORATION MEETING, THEY MET ON DECEMBER 1ST AND THEIR MAIN ITEMS WERE RELATED TO THE SELL TO SOME OF HOTEL PROPERTIES. THEIR MAIN AGENDA ITEMS WERE ASSIGNMENT OF THE LEASE AGREEMENT WITH THE NEW ENTITY. THERE ALSO SOME VERY MINOR AMENDMENTS TO THE LEASE ITSELF, ONE RELATED TO BASICALLY THE TRANSFER AND ALLOWING THE LGC BOARD TO QUALIFY THE TRANSFEREE BECAUSE THE ORIGINAL INTENT WAS SOMEBODY WITH A CERTAIN NUMBER OF HOTEL IN THEIR HOTEL ROOMS AND THEIR PORTFOLIO NET WORTH THOSE SORTS OF THINGS. AND WHO HAS ENDED UP ACQUIRING THEIR LEASE IS A REAL ESTATE INVESTMENT TRUST, SO IT'S A MUCH LARGER ENTITY WITH SUBSET LLC'S, AND WE HAD TO MAKE SURE THAT IT MET THE REQUIREMENTS TO BE ASSIGNED TO THEM. THE OTHER MINOR CHANGE WAS MORE TO THE CITY'S BENEFIT RELATED TO THE PARKING GARAGE RENT. RIGHT NOW, EMBASSY SUITES PAYS FOR VALET PARKING SPACES IN THE GARAGE AT A CERTAIN AMOUNT A YEAR, AND THERE WAS A CPI ADJUSTMENT TRIGGER THAT CAN ONLY BE IMPLEMENTED IF WE HAD PAID ON STREET PARKING. IN ORDER TO GIVE THE CITY THE MOST FLEXIBILITY, WE'VE ADDRESSED THAT LANGUAGE TO ALLOW FOR EITHER PAID OR ON STREET MANAGED PARKING THROUGH TIME AND FORCE ZONES. SO IN CASE, NEXT WEEK OR FIVE YEARS FROM NOW, THE CITY DECIDES WE DON'T WANT PAID PARKING ANYMORE, AND NOW YOU STILL HAVE THE OPTION TO SWITCH IT AND STILL CHARGE CPI ADJUSTMENTS IN THE RENT. SO THOSE WERE THE MAJOR AGREEMENTS THAT WENT ON THAT AGENDA. THEY WERE BOTH APPROVED. AND NOW WE DO HAVE SOME ITEMS ON CITY COUNCIL AGENDA TODAY RELATED TO SOME OF THE COMMENTS. AS FAR AS THE HOTEL ITSELF, IT'S ALL OWNED BY THE CITY. IT'S LEASED LONG TERM FOR AN 80 YEAR LEASE TO NOW, SOME AT HOTEL PROPERTIES AFTER TODAY. SO TECHNICALLY IT'S ALL OWNED BY THE CITY. THE WAY THE TAX STRUCTURE WORKS, SOME ARE CONSIDERED PUBLIC SPACES LIKE THE FIRST FLOOR CONFERENCE CENTER SPACE. AND THEN THERE'S THE PRIVATE SPACES THE EMBASSY SUITES OPERATOR PAYS PROPERTY TAXES ON. SO THAT'S THE DIFFERENCE THERE. AS FAR AS IF YOU LOOK AT THE TAX ROLLS, A PORTION IS TAX EXEMPT AND A PORTION IS TAXABLE. SO IT'S JUST THE WAY THE TAX STRUCTURE ALLOWS THAT TO BE SET ASIDE. AS FAR AS THE PASSAGEWAY, IT IS CORRECT A PASSAGEWAY IS REQUIRED, BUT IT WAS VERY BROAD LANGUAGE. IT DID NOT REQUIRE SIGNAGE OR ANYTHING SPECIFIC, JUST THAT THERE NEEDED TO BE A PUBLIC PASSAGEWAY FROM THE GARAGE TO THE GLOBE NEWS. SO THERE IS TECHNICALLY A PASSAGEWAY. WE HAVE DISCUSSED AND I'LL BE DISCUSSING WITH THE LGC BOARD, MAYBE ON THEIR NEXT [00:25:05] MEETING, WORKING WITH THE NEW OPERATORS. COULD WE GET SOME WAYFINDING SIGNAGE? IT PROBABLY WOULD BE HELPFUL TO HAVE THAT. SO PEOPLE DO KNOW IT'S SAFE TO WALK THROUGH HERE IF YOU'RE NOT A GUEST OF THE HOTEL. BUT TECHNICALLY THEY MET THE REQUIREMENTS OF THE CONTRACT BY HAVING A PUBLIC PASSAGEWAY THROUGH THE HOTEL. AS FAR AS THE FOUR DIAMOND STATUS THEY ARE FOUR DIAMOND AAA RATED AS OF I BELIEVE, SEPTEMBER A COUPLE OF MONTHS AGO, SO THEY HAVE OFFICIALLY MET THAT REQUIREMENT. THERE WERE SOME DELAYS WITH GETTING THAT STATUS. SOME OF THEM WERE COVID RELATED. THEY HAD ONE INSPECTION THAT DIDN'T PASS. AND THEN AS THEY STARTED WORKING TOWARD IMPROVEMENTS, AAA STOPPED DOING INSPECTIONS. SO ONCE THEY DID GET STARTED BACK UP, THEY MET THE REQUIREMENT AND NOW ARE IN COMPLIANCE WITH THE CONTRACT. AND ALSO JUST TO CLARIFY, THE CONTRACT DID NOT REQUIRE A CERTAIN DEADLINE TO MEET AAA FOUR DIAMOND STATUS, SO THERE WASN'T REALLY A DEADLINE OR IF THIS DOESN'T HAPPEN, WHAT HAPPENS NEXT WITH THAT SITUATION. BUT AS FAR AS WE STAND TODAY, THEY ARE MEETING ALL THE REQUIREMENTS OF THEIR OPERATING AGREEMENT. IF CONCERNS EXPRESSED ARE VALID, BUT AS PER THE CONTRACT, THERE WAS NO REQUIREMENT FOR FOUR DIAMONDS AT FOR IT TO OPEN. NOR WAS THERE A TIMELINE AS TO ACHIEVE FOUR DIAMONDS, JUST THE PRESSURE THAT WE APPLIED TO THEM. SO THEY GOT IT DONE AND WE'RE GLAD FOR IT. CORRECT. AND NOW THEY'LL HAVE TO MAINTAIN IT AS THEY MOVE FORWARD SO THEY'LL GET ANNUAL INSPECTIONS. AND IF THEY WERE TO LOSE IT, THEN THEY HAVE TO WORK TO GET BACK TO IT. ANY QUESTIONS FOR ANDREW ABOUT THAT? I HAVE A FEW, SO I HAVE THE LEAST AMOUNT OF EDUCATION ON, YOU KNOW, THE DEAL AND WHAT WAS MADE, WHAT WASN'T. SO MY CONCERN WOULD BE IN APPROVING ANYTHING THAT HAS A MATERIAL CHANGE THAT I'M UNAWARE OF BECAUSE I DON'T HAVE THE CONTRACT. I DEFINITELY DON'T KNOW WHAT WAS DONE FIVE YEARS AGO, SIX YEARS AGO. BUT IS THERE ANY MATERIAL CHANGE OUTSIDE OF PARKING OR PARKING? HMM. AND THEN. THAT WAS THE MAIN CHANGE, AND THAT WAS AT THE LGC LEVEL, SO THAT AGREEMENT DOESN'T COME TO CITY COUNCIL. THE ONE AMENDMENT ON YOUR AGENDA IS RELATED TO THE INCENTIVE PACKAGE THAT THEY RECEIVED, BUT THE ONLY CHANGE IS TO ADDRESS THE REAL ESTATE INVESTMENT TRUST STRUCTURE AS FAR AS THEM RECEIVING THE PAYMENTS. BUT AS FAR AS THE TERMS, IT'S STILL THE LOCAL HOT TAX REBATES FOR 20 YEARS, OR 40 PERCENT OF THE CONSTRUCTION VALUE, AS WELL AS THE STATE SALES TAX AND STATE HOT TAX FOR 10 YEARS. SO NOTHING HAS CHANGED AS FAR AS HOW MUCH THEY'LL RECEIVE, HOW LONG THE TERM IS OR ANY OF THOSE DETAILS. SO THE INCENTIVES THAT WERE GIVEN SIX YEARS AGO THAT RIDER FURTHER BACK TO START IN 2010, I BELIEVE, IS WHEN NEGOTIATING INCENTIVES THAT WERE GIVEN A DECADE AGO ARE THE EXACT SAME INCENTIVES THAT YOU'RE ASSIGNING TO THE TO THE BUYER. AND THEN DOES ANYTHING CHANGE IN THE GROUND LEASE BECAUSE I'M I'M UNFAMILIAR IN HOW THIS HAS FORMED. IS THERE A GROUND LEASE? THERE IS A GROUND LEASE. OK, SO THERE'S A GROUND LEASE THAT ENCOMPASSES THE ACTUAL HOTEL. CORRECT. AND SO LGC IS THE ENTITY THAT OWNS THE GROUND LEASE AND OWNS THE HOTEL ON BEHALF OF THE CITY. SO WHEN WE SAY THE CITY OWNS IT, IT'S THROUGH THE LGC. WE'RE SAYING THE LGC IS THE ENTITY THAT CAN THAT CONTROLS OWNERSHIP. AND WE'RE NOT SELLING ANYTHING OURSELVES. THE LESSEE IS SELLING THEIR THEIR RIGHTS TO THE RIGHTS TO ANOTHER COMPANY AND NOTHING MATERIAL CHANGES ON BEHALF OF THE LGC. IS THAT A SIMPLE WAY TO SAY THIS? THAT'S CORRECT. AND I'M ACCURATE IN UNDERSTANDING THAT THAT'S THE TOTALITY OF IT. THERE'S NOTHING. IT'S TRANSFERRING EVERYTHING AS IS JUST TO A NEW, NEW LESSEE. OK, AND THEN THERE WASN'T ANY OPPORTUNITY TO RESTRUCTURE ANY INCENTIVES OR DO ANYTHING DIFFERENT. IT WASN'T UP TO US. THAT'S BETWEEN THE SELLER AND THE BUYER. WELL, NO, IT'S REALLY JUST TRANSFERRING ANYTHING. YEAH. SO IT'S REALLY JUST TRANSFERRING THE AGREEMENT TO A NEW NEW ENTITY IF THEY WANTED TO COME BACK TO US LATER. BUT WE JUST DON'T FORESEE THAT TAKING PLACE UNLESS THERE WAS SOMETHING MAJOR TO CHANGE. I THINK THE OPTION IN FRONT OF COUNCIL TODAY IS TO EITHER APPROVE THE ASSIGNMENT AND ALL OF THE DOCUMENTS ASSOCIATED WITH THAT ASSIGNMENT OR NOT. IT'S AN EXCELLENT OPERATOR WITH MANY MORE FOIR DIAMOND HOTELS THAN OUR CURRENT OPERATOR, NOT THAT THERE'S ANYTHING WRONG WITH THE CURRENT OPERATOR. JUST IT'S GOOD INDICATION THAT WE ARE ASSIGNING TO A CAPABLE, PROVEN COMPANY. RIGHT. OK, THANK YOU. THANK YOU, ANDREW. LET'S MOVE ON, THEN THE NEXT ITEM ON THE AGENDA IS PEDESTRIAN AND BICYCLE SAFETY ADVISORY COMMITTEE, BUT HOWARD IS NOT HERE TO GIVE THAT REPORT. I SEE DONNIE HOOPER COMING THIS WAY. THANK YOU. GOOD AFTERNOON. I'LL JUST MAKE IT PRETTY BRIEF. OF COURSE, ONE OF THE BIGGEST OBJECTIVES THAT THE BICYCLE AND PEDESTRIAN SAFETY COMMITTEE HAS IS SAFETY. WHAT THEY WANTED US AS STAFF TO BRING TO THEM IN THIS LAST MEETING WAS A LIST OF THE [00:30:01] ACCIDENTS THAT HAVE OCCURRED WITHIN THE CITY FOR BICYCLISTS. SO WE MADE A COMPREHENSIVE PRESENTATION TO THEM OF THOSE LOCATIONS. THE GOOD NEWS IS THAT THERE WERE SEVEN OF THOSE THAT OCCURRED WITHIN RIGHT AROUND THE IMMEDIATE AREA OF GEORGIA STREET, WHERE THE HAWK WAS PUT IN. THEN FIVE OF THOSE ALSO WERE IN THE AMARILLO BOULEVARD AREA, WHERE WE HAVE THE HAWKS THAT WERE JUST RECENTLY INSTALLED TOO. SO WE KNOW THAT WE'RE MAKING A DIFFERENCE THERE, AND I THINK THAT THEY WERE VERY PLEASED WITH THAT PART OF THE REPORT. A LOT OF THE OTHER ACCIDENTS OCCURRED IN RESIDENTIAL AREAS. AND OF COURSE, THERE'S NOT A LOT THAT WE CAN DO ABOUT SOME OF THOSE WHERE IT'S JUST SOMEONE COMING OUT ON A BICYCLE IN FRONT OF A CAR OR SOMETHING LIKE THAT. BUT WE'RE GOING TO COME BACK TO THEM WITH SOME MORE INFORMATION. START DOWN THAT ROAD AND SEE IF WE CAN MAKE SOME MORE IMPROVEMENTS. THAT WAS REALLY THE BIGGEST ITEM THAT WE COVERED IN THAT MEETING. AND THEN, OF COURSE, SOME PLANNING FOR SOME, SOME FUTURE MEETINGS OF THINGS WE'RE GOING TO BE TALKING ABOUT RELATED TO SAFETY WITH THOSE ACCIDENT LOCATIONS. THANK YOU. ANY QUESTIONS FOR DONNIE ABOUT THAT? THANK YOU, DONNIE. YOU'RE WELCOME. NEXT IS DR. SAUER GIVING OUR BEAUTIFICATION AND PUBLIC ARTS ADVISORY BOARD REPORT. OK, SO WE MET ON NOVEMBER THE 9TH, AND THE MAIN THING THAT I WOULD SAY PROBABLY CAME OUT OF THAT MEETING WAS THAT THE MURAL GRANT APPLICATION IS OPEN AND APPLICATIONS CAN BE SUBMITTED UNTIL JANUARY, THE TWENTY FIRST OF TWENTY TWENTY TWO AND THERE'S AN EMAIL TO GET MORE INFORMATION. AND ITS MURAL GRANTS, MURALGRANTS@AMARILLO.GOV AND YOU CAN GET A LOT MORE INFORMATION ABOUT WHAT'S GOING ON. SO WE'VE GOT ANOTHER WHOLE YEAR OF THAT. ONE OF THE THINGS THAT WE HAVE RUN INTO A LITTLE BIT OF, I GUESS WOULD SAY IS A LITTLE BIT DISAPPOINTING IS FIGURING OUT HOW TO GET A BEAUTIFICATION PROJECT OFF THE GROUND. IT'S BEEN PRETTY DIFFICULT, BUT WHAT HAS HAPPENED IS MAYOR, IF YOU WENT TO BLOOMBERG AND YOU CAME BACK WITH THAT INFORMATION IS WE'RE BEGINNING TO THEY HAVE A PRETTY GOOD PHILANTHROPY ARM AND THEY LIKE TO DO BEAUTIFICATION IN BIG WAYS. AND SO AS A BOARD, WE'RE GOING TO BEGIN TO KIND OF LOOK DOWN THAT PATH AND SEE IF THERE'S NOT A POSSIBILITY TO BE ABLE TO PARTNER AND GET A GRANT FROM THEM. THAT WOULD BE A SIGNIFICANT BEAUTIFICATION PROJECT IN THE CITY. THE OTHER THING THAT PROBABLY THAT WE'RE BEGINNING TO TALK ABOUT IS, YOU KNOW, THE PUBLIC, THE MASTER PLAN FOR BEAUTIFICATION OF PUBLIC ARTS CAME BACK AND THERE'S SEVERAL THINGS THAT WERE MAYBE NOT REALLY WHAT WE THOUGHT WOULD BE ON OUR HORIZON AT LOOKING AT. AND SO WE'RE GOING TO BE GOING BACK THROUGH THE MURAL GRANT MASTER PLAN. I MEAN, THE PARK PUBLIC ARTS AND BEAUTIFICATION MASTER PLAN AND JUST SEEING TRYING TO COME UP WITH SOME, MAYBE SOME STEPS THAT WE WOULD LIKE TO SEE FOLLOWED THROUGH THAT WOULD BE BROUGHT BACK TO COUNCIL FOR THEIR APPROVAL. AND SO THERE'S A LOT THAT COULD BE HAPPENING IN THIS NEXT YEAR. SO I THINK IT'LL BE A PRETTY EXCITING YEAR WHEN WE START BACK UP IN JANUARY. EXCELLENT QUESTIONS JUST FROM THE COMMITTEE'S POINT OF VIEW, EVEN IF YOU ALL NEED HELP GETTING IDEAS ABOUT WHAT'S WORKING IN OTHER CITIES, I THINK THE BLOOMBERG TEAM WOULD BE WILLING TO HOP ON A 15 MINUTE PHONE CALL AND JUST SAY, HERE'S THE TOP THREE THINGS THAT YOU KNOW WE'RE SEEING OTHER CITIES DO THAT ARE EASY TO REPLICATE AND GET SOME TRACTION ON. OK, SO THAT'S A RESOURCE FOR US, FOR THEM. I DO. YEAH, I'D BE HAPPY TO HELP ON THAT. OK, THANK YOU. LAST REPORT IS CONVENTION AND VISITORS BUREAU. MAYOR PRO TEM. GREAT, THANK YOU. SO THIS IS A FAIRLY NEW BOARD AND WE ARE DEFINITELY MOVING RIGHT ALONG. I'M ENJOYING THE OPPORTUNITY TO SERVE ON THIS PARTICULAR BOARD. THEY ARE FINALIZING THEIR BUDGET AND IN PREPARATION, GETTING READY FOR AN AUDIT. THEY'RE ALSO WORKING ON THE STRATEGIC PLAN FOR THE CONVENTION AND VISITORS BUREAU, AND THEN THEY ARE CREATING OR PUTTING TOGETHER IN A VERY COMPREHENSIVE EMPLOYEE HANDBOOK. SO WE'RE ON ON A ROLL AND MAKING PROGRESS. ALL THAT WORK THAT NEEDS TO BE DONE IN THE BEGINNING OF AN ORGANIZATION, SO ABSOLUTELY WORK FOR DECADES AND DECADES, RIGHT? OK, ANY QUESTIONS FOR FREDA ABOUT THAT? OK, THANKS. [1.C. Discuss Neighborhood Empowerment Zones] THEN ITEM ONE C IS TO DISCUSS NEIGHBORHOOD EMPOWERMENT ZONES. MR. CITY MANAGER. ALL RIGHT, MAYOR, TO TALK ABOUT TO PRESENT THE ITEM, WE'VE GOT EMILY KOHLER. SHE'S GOING TO GIVE A PRESENTATION. I WOULD SAY BRIEF, BUT I THINK IT IS MAYBE TEN MINUTES OR SO. AND THEN WE'LL ANSWER ANY QUESTIONS THAT YOU MAY HAVE. EMILY, WELCOME. IT'S A LITTLE OBSTACLE, OF COURSE, TO GET TO THE MICROPHONE, YEAH, I DIDN'T THINK I SHOULD TRY HURDLING THAT. GOOD AFTERNOON, COUNCIL, MAYOR. I'M EXCITED TO BE HERE TO DISCUSS THIS WITH YOU. I WILL TRY TO MOVE QUICKLY. [00:35:03] PLEASE FEEL FREE TO STOP ME, THOUGH, AS I GO THROUGH THE SLIDES. THIS IS A PROGRAM THAT WE HAVE BEEN DISCUSSING FOR A WHILE, ESPECIALLY AS IT RELATES TO THE NEIGHBORHOOD PLAN AREAS TO ADDRESS THE CONCERN OF HOUSING CONDITIONS IN AMARILLO. THE CONDITION OF HOUSING IS UNIVERSALLY NOTED AND ALL OF THE NEIGHBORHOOD PLANS AS ONE OF THE MAJOR AND MOST CRITICAL ISSUES. SO I'M GOING TO DO JUST KIND OF AN OVERVIEW OF WHAT NEIGHBORHOOD EMPOWERMENT ZONES ARE AND THEN PRESENT KIND OF AN INITIAL PROGRAM DRAFT OF HOW IT MIGHT BE IMPLEMENTED IN AMARILLO. AND WE ARE LOOKING FOR FEEDBACK TODAY ON IF YOU'D LIKE TO MOVE FORWARD WITH THIS AND MAYBE A LITTLE BIT OF INITIAL DIRECTION. SO NEZ'S ARE GOVERNED BY CHAPTER THREE SEVENTY EIGHT OF THE LGC UNDER PLANNING AND DEVELOPMENT, AND THEY NEED TO BE ADOPTED BY A COUNCIL RESOLUTION THAT WOULD MAKE A DETERMINATION THAT THE ZONE WOULD CREATE AFFORDABLE HOUSING, INCREASE ECONOMIC DEVELOPMENT, INCREASE SOCIAL SERVICES, EDUCATION OR PUBLIC SAFETY, OR ALLOW THE REHABILITATION OF AFFORDABLE HOUSING AND THE ZONE ITSELF. THE AREA HAS TO MEET THE REQUIREMENTS OF SECTION 312-202 OF THE TAX CODE, WHICH YOU'RE FAMILIAR WITH, BECAUSE THAT'S THE SAME CRITERIA WHEN REINVESTMENT ZONES ARE CREATED. SO ONCE A ZONE IS IN PLACE, GENERALLY THEY'RE A TOOL TO ENCOURAGE PRIVATE SECTOR REINVESTMENT IN THESE DISTRESSED AREAS. SO THESE ARE THE INCENTIVES THAT ARE ALLOWED BY STATUTE. PROPERTY TAX ABATEMENT, THERE'S A LIMIT OF 10 YEARS. DEVELOPMENT FEE WAIVERS, IMPACT FEE WAIVERS AND THEN THE RELEASE OF CITY LIENS. THE PROGRAM CAN BE STRUCTURED WITH ANY COMBINATION OF INCENTIVES, AND YOU CAN CREATE MULTIPLE ZONES WITHIN THE CITY, AND EACH ZONE CAN BE SLIGHTLY DIFFERENT FOR WHAT INCENTIVES ARE OFFERED IN EACH. AND SO WE'RE STILL EVALUATING THE POSSIBLE FEE WAIVERS IN AMARILLO. THERE'S A LIST THERE. IT CAN INCLUDE ALL OF THOSE, SOME OF THOSE, AND ALSO BECAUSE THE PROPERTY OWNER ENTERS INTO IT'S IT'S AN ECONOMIC DEVELOPMENT AGREEMENT. THEY CAN ALSO BE REQUIRED TO FOLLOW ADDITIONAL DESIGN STANDARDS. SO THIS IS THE INITIAL KIND OF PROGRAM DRAFT OF WHERE WE'RE AT RIGHT NOW. THERE ARE THREE TIERS. THE FIRST ONE IS FOCUSED ON REHABILITATION. IT SAYS SINGLE FAMILY. IT WOULD MAKE SENSE TO INCLUDE MULTIFAMILY THERE, BUT OUR THINKING IS THAT WE'RE REALLY TRYING TO ENCOURAGE THE INCREMENTAL IMPROVEMENT OF HOUSING FOR OWNER OCCUPANTS. SO IN THIS FIRST YEAR, ALL THE PERMIT FEES WOULD BE WAIVED AND THERE WOULD BE NO NEZ PROGRAM APPLICATION FEE EITHER. AND THERE IS ALSO THERE IS THE OPTION OF OF TAX ABATEMENT, BUT WE'VE DONE SOME CALCULATIONS AND WE'RE NOT SURE THAT THE RETURN ON THAT IS WORTH THE EFFORT AND THAT'S ON THE NEXT SLIDE. SOME OF THOSE NUMBERS. THE SECOND TIER IS NEW CONSTRUCTION FOR SINGLE FAMILY AND MULTIFAMILY. SO THIS WOULD WAIVE THE DEVELOPMENT AND PERMIT FEE WAIVERS. RELEASE ANY CITY LIENS, THIS IS SOMETHING THAT WE'RE STARTING TO SEE. WE'RE GETTING QUESTIONS ON THIS. WHEN LOTS CHANGE OWNERSHIP AND PEOPLE ARE ARE WANTING TO BUILD, THEY'RE RUNNING INTO ISSUES WITH CITY LIENS. THIS LEVEL WOULD OFFER THE 10 YEAR ABATEMENT, WHICH IS ONE HUNDRED PERCENT OF IMPROVEMENT VALUE FOR CITY PROPERTY TAXES ALONE. WE'RE RECOMMENDING THAT THESE PROJECTS WOULD HAVE TO MEET SOME MINIMUM DESIGN STANDARDS. MOSTLY, THIS IS JUST TO MAKE SURE THAT THESE PROJECTS ARE CONSISTENT WITH THE ARCHITECTURAL CHARACTER OF THE AREA AND THERE WOULD BE A PROGRAM FEE AT THIS LEVEL. AND THEN THE THIRD ONE IS SIMILAR. IT'S JUST FOR COMMERCIAL, RETAIL AND OFFICE, SO THERE'D BE A SEPARATE SET OF STANDARDS FOR COMMERCIAL RETAIL OFFICE. WE WOULD RECOMMEND PROBABLY NOT INCENTIVIZING INDUSTRIAL AND HEAVY COMMERCIAL USES IN THESE AREAS. WANT TO MAKE SURE THAT WE'RE TRYING TO ENCOURAGE PROJECTS THAT IMPROVE THE NEIGHBORHOODS AND THERE WOULD BE A SLIGHTLY HIGHER PROGRAM APPLICATION FEE. THIS WILL JUST GIVE YOU KIND OF AN IDEA OF WHAT WE'RE TALKING ABOUT AS FAR AS WHAT THE THE OWNER OR THE DEVELOPER WOULD RECEIVE AS AN INCENTIVE. SO IN THAT FIRST CASE STUDY OF REHABILITATION, WHERE WE'RE JUST LOOKING PROBABLY [00:40:02] AT THE PROCESS FEE, SO THOSE WOULD BE THE PERMIT FEES RELATED. ABOUT THREE HUNDRED AND FIFTY DOLLARS, THE TEN YEAR CITY PROPERTY TAX ABATEMENT, THREE HUNDRED AND SEVENTY, AND THESE ARE ADMINISTRATIVELY TIME INTENSIVE SOME. THAT'S WHY WERE WERE SUGGESTING THAT THE RETURN ON THAT MAY NOT BE WORTH THE EFFORT. AND THEN FOR NEW CONSTRUCTION, THE INCENTIVES ARE MORE SIGNIFICANT. SO PROCESS BETWEEN THREE AND FOUR THOUSAND DOLLARS AND THEN THAT 10 YEAR ABATEMENT, SEVERAL THOUSANDS OF DOLLARS. AND THAT'S AGAIN, JUST THE CITY'S PARTICIPATION. COUNTIES CAN PARTICIPATE IN THIS PROGRAM, AND THAT WOULD INCREASE THAT INCENTIVE SIGNIFICANTLY. SO THIS IS A MAP OF THE CDBG TARGET AREAS AND THEN IT SHOWS WHERE OUR NEIGHBORHOOD PLAN BOUNDARIES ARE. I THINK THIS IS AN AREA WHERE WE WOULD NEED SOME GUIDANCE. AGAIN, YOU CAN ADOPT MULTIPLE ZONES WITH A SINGLE RESOLUTION. EACH ZONE COULD HAVE VARYING CRITERIA OR STANDARDS, OR THEY COULD BE UNIFORM. WE'VE TALKED ABOUT DOWNTOWN. ONE OF OUR MAJOR GOALS IN DOWNTOWN IS RESIDENTIAL, SO WE CAN INCLUDE THE DOWNTOWN TIERS BOUNDARY, BUT MAYBE LIMIT THAT JUST TO RESIDENTIAL OR AS A NEIGHBORHOOD PLAN. AREAS WOULD ALL BE SIMILAR, BUT YEAH, AT THIS TIME, THIS IS AN AREA WHERE WE WOULD NEED SOME DIRECTION IF WE WANTED TO MOVE FORWARD. AND THEN JUST QUICKLY, I THINK WE WANTED TO MAKE SURE TO NOTE THAT, YOU KNOW, WE'RE STILL RESEARCHING THIS AND WE'RE WE ARE NOT SURE THAT THIS WOULD MOTIVATE, LIKE WIDESPREAD REHABILITATION OF EXISTING HOMES. WE JUST KIND OF WANT TO SET EXPECTATIONS. WE'RE NOT SURE IF THE INCENTIVES ARE ENOUGH, EVEN THOUGH THAT'S ONE OF OUR REAL GOALS THROUGH THIS. AND ALSO THERE ARE OTHER SOME OTHER CHALLENGES WITH THE ABATEMENT, THE WAY THAT'S SET UP THAT WOULD HAVE TO TRANSFER TO THE OWNER OF THE HOME. AND THAT'S ANOTHER ONE OF OUR GOALS IN OUR NEIGHBORHOODS IS WE'RE TRYING TO INCREASE SINGLE FAMILY HOME OWNERSHIP. SO WE'RE NOT SURE IF THE INCENTIVES AGAIN WOULD BE ENOUGH TO MOTIVATE A DEVELOPER TO BUILD SINGLE FAMILY HOMES THAT WOULD THEN TRANSFER TO THE OWNER OCCUPANT. AND ALSO, THE APPLICATION PROCESS FOR THIS TENDS TO BE PRETTY TIME INTENSIVE. SO THERE'S A LOT OF STAFF TIME THAT GOES INTO THIS. SO WE JUST WANT TO MAKE SURE THAT THE RETURN THAT WE WOULD SEE WOULD BE WORTH THE AMOUNT OF STAFF TIME THAT IT WOULD INVOLVE. SO TODAY, WE'RE REALLY LOOKING FOR SOME DIRECTION ON IF YOU'D LIKE US TO MOVE FORWARD WITH THIS. AND THEN THERE'S KIND OF A LIST OF ITEMS THERE THAT WE WOULD NEED TO KEEP WORKING ON THAT FINAL LIST OF FEES TO BE WAIVED. WHAT WE WOULD THINK THE PROGRAM APPLICATION FEES WOULD BE THE NUMBER OF ZONES IF THEY'RE GOING TO VARY BY NEIGHBORHOOD, IF THEY'RE GOING TO BE UNIFORM AND THEN EXPLORING WHETHER POTTER COUNTY WOULD WANT TO PARTICIPATE AS THE OTHER ENTITY IN THE INNER LOCAL AGREEMENT FOR THE NEIGHBORHOOD PLANS. AND THEN AFTER THAT, WE DEFINITELY WOULD WANT TO DO SOME PUBLIC OUTREACH BEFORE BRINGING THIS BACK. SO THAT IS WHAT I HAVE, AND I'D BE HAPPY TO TAKE QUESTIONS. WE ALSO HAVE OUR NEW ECONOMIC DEVELOPMENT SPECIALIST, CODY BALLS IN HERE THAT CAN ASSIST WITH US. QUESTIONS COUNSEL FOR EMILY OR CODY. WELCOME BACK, CODY. I DO MAYOR. THANK YOU, GOOD PRESENTATION. THE THE LIENS, ARE THEY SATISFIED AND ARE THEY CITY ONLY? I'M JUST CLARIFYING THAT IF WE HAD A MATERIAL LION OR SOMETHING AGAINST A PROPERTY THAT WOULDN'T BE NEGATED SOMEHOW. YEAH, I THINK THE VAST MAJORITY OF THESE IN THE PLAN AREAS ARE RELATED TO WEEDS AND LIKE JUNK VEHICLES. SO A LIEN, THAT WOULD BE HELD WITH THE CITY ONLY? YES. SO IF THERE WAS A THIRD PARTY LIEN AGAINST A PROPERTY. JUST CITY LIENS, YES. JUST CITY LIENS. NOTHING TO DO WITH REZONING, NO, NO PREREQ TO REZONE ANYTHING OR HAVE ANY KIND OF MASTER PLAN IN ORDER TO SET UP AN EMPOWERMENT ZONE? NO, BUT THAT IS TYPICALLY ONE OF THE ELIGIBLE INDIVIDUAL ELIGIBILITY REQUIREMENTS FOR THE PROJECT IS THAT THE PROPERTY IS ZONED CORRECTLY. [00:45:01] SO IF YOU HAD A NON-COMPLIANT OR NON-CONFORMING PROPERTY, IT WOULD NEED TO CONFORM TO THE EXISTING ZONING IN ORDER TO QUALIFY FOR THIS EMPOWERMENT ZONE. CORRECT, AND ZONING IS ONE OF THE ALLOWABLE FEE WAIVERS. AND SO, FOR EXAMPLE, IN NORTH HEIGHTS, IF SOMEONE WANTED TO COME IN AND DO FIVE OR SIX HOUSES AND IT ZONED INDUSTRIAL. THIS IS A WAY TO ACTUALLY ENCOURAGE REZONING TO A RESIDENTIAL ZONE, AND THERE WOULD BE NO FEE ASSOCIATED WITH THAT. SO MIGHT BE A PATH FORWARD AND KIND OF WHAT WE WERE ALREADY TALKING ABOUT WITH NORTH HEIGHTS IS A GOOD EXAMPLE OF THOSE HOMEOWNERS OR THOSE OWNERS OF THOSE PROPERTIES REQUESTING TO BE ZONED ACCORDINGLY TO, YOU KNOW, RESIDENTIAL OR WHATEVER IS THE CONFORMING AMOUNT IN ORDER TO GET THE BENEFITS OF THIS. AND YOU THINK THERE ARE SOME BENEFITS HERE? WHAT IS THE MAIN DRAWBACK? I MEAN, OTHER THAN THE PAPERWORK TO GO THROUGH IN THE TIME INVESTED, IF IT DOESN'T REALLY MOTIVATE ANYONE, WHAT ELSE WOULD WE LOSE HERE? DO WE HAVE ANY OTHER ISSUES? NO, I DON'T THINK SO. I THINK THAT IT'S JUST WHAT I SAID IN THE PRESENTATION, AND I THINK WE'RE JUST CONCERNED THAT WHAT IS BEING OFFERED MAY NOT BE ENOUGH TO MOTIVATE WORK ON THE SCALE THAT REALLY IS NEEDED TO TRANSFORM THESE NEIGHBORHOODS. LAST QUESTION, DOES THIS HAVE ANY COMPONENT IN IT THAT WOULD HELP US WITH SOME SORT OF FINANCING OR PULLING SOME OF THE OTHER ITEMS THAT WE HAVE WHERE COMMUNITIES CAN PULL TOGETHER TO HELP GET SOMEBODY, YOU KNOW, FIRST TIME HOMEOWNER OR SOMEBODY WHO'S BORDERLINE ON A FINANCE TO BECOME A HOMEOWNER? I DON'T THINK THROUGH THE NEIGHBORHOOD EMPOWERMENT ZONE PROGRAM ITSELF, BUT I THINK IT ALLOWS US TO BRING SOMETHING TO THE TABLE IN THOSE CONVERSATIONS WHERE WE'RE TALKING ABOUT, WELL, THE CITY IS WILLING TO DO THIS, THE NEIGHBORHOOD ASSOCIATION IS WILLING TO DO THIS AND THE DEVELOPER IS WILLING TO DO THIS. I THINK IT'S IMPORTANT THAT WE HAVE SOMETHING THAT WE CAN OFFER AS A TANGIBLE BENEFIT. THANK YOU. OTHER QUESTIONS. I JUST HAD TWO AND ONE IS, ARE THERE OTHER FUNDING SOURCES THAT WE COULD USE TO APPLY INCENTIVES TO MEANING HUD FUNDING OR ANY KIND OF GRANT FUNDING THAT WE COULD BE STACKING THINGS ON THAT MAYBE WOULD MAKE SOME OF THOSE REDEVELOPMENT PROJECTS MORE ATTRACTIVE THAN BECAUSE I SEE EXACTLY WHAT YOU'RE SAYING. THEY JUST DON'T MOVE THE NEEDLE THAT MUCH. YEAH, I THINK LIKE FOR AN OWNER OCCUPIED PROPERTY, THE SOME OF THE PROGRAMS OFFERED THROUGH COMMUNITY DEVELOPMENT, LIKE THE MINOR REPAIR. I THINK IF WE WORKED MORE STRATEGICALLY WITH THE NEIGHBORHOODS THAT COULD REALLY START TO MAKE A DIFFERENCE. THERE ARE OTHER THINGS TOO, THAT WE JUST HAVEN'T GOTTEN TO IN THE PLANS, BUT THINGS LIKE TOOL LENDING LIBRARIES, THE THE NEW DUMPSTER PROGRAM, WHERE YOU CAN REMOVE THE DEBRIS FROM A HOUSE WITHOUT COST TO A HOMEOWNER. I THINK IF WE JUST SORT OF COORDINATED THESE DIFFERENT THINGS, WE COULD COME UP WITH SOMETHING THAT MIGHT REALLY BE ABLE TO MAKE A DIFFERENCE. SO THOSE ARE EVEN MORE SOFT THINGS, NOT JUST LOOKING AT THE FINANCIAL DIRECT BENEFIT? RIGHT. AND THEN THAT KIND OF LEADS TO MY NEXT QUESTION, WHICH IS I'M ASSUMING YOU GUYS HAVE LOOKED AT OTHER COMMUNITIES THAT HAVE DONE NEIGHBORHOOD EMPOWERMENT ZONES OR DO WE NEED TO START CONVERSATIONS WITH OTHER COMMUNITIES ABOUT WHAT ARE YOU DOING IN YOUR CITY THAT STIMULATES REDEVELOPMENT IN OUR NEIGHBORHOOD EMPOWERMENT ZONES? PART OF THAT STRATEGY? WE HAVE WE HAVE AN EXTENSIVE SPREADSHEET. I FIGURED AS MUCH, I WANTED TO GIVE YOU A CHANCE TO TALK ABOUT IT. YEAH, AND WE'RE WORKING. CODY IS CALLING SOME OF THOSE OTHER CITIES AND WE'RE KIND OF IN THAT PROCESS RIGHT NOW OF SETTING UP MEETINGS AND ACTUALLY HAVING THOSE CONVERSATIONS. I THINK WHERE A LOT OF COMMUNITIES HAVE SEEN SUCCESS, THEY'RE USING THESE IN THEIR DOWNTOWNS AS AN ADDITIONAL LAYER. SO WE NEED TO STILL KIND OF DIG IN OR THE LIKE VERY LARGE CITIES LIKE FORT WORTH AND AUSTIN THAT HAVE SEEN SUBSTANTIAL INVESTMENT. SO I THINK WE'RE STILL TRYING TO FIND A REALLY GOOD CASE STUDY FROM A SIMILAR SIZED CITY THAT'S USES FOR THEIR NEIGHBORHOODS. BUT I'D BE HAPPY TO REPORT BACK ON THAT. I THINK THIS MIGHT BE A GREAT WE SHOULD REACH OUT TO BLOOMBERG. YEAH, EVEN IF I JUST REACHED OUT TO THE MAYORS IN OUR GROUP AND JUST SAID WHO AND WHO'S USING NEIGHBORHOOD EMPOWERMENT ZONES AND CAN I GET A ONE ON ONE WITH YOU ABOUT THOSE? SO I THINK THAT WE MAKE A NOTE ABOUT THAT. AND THEN SO DO WE HAVE CONSENSUS THAT WE WANT TO PROVIDE EMILY AND CODY WITH REGARD TO WHETHER OR NOT THEY SHOULD MOVE FORWARD ON BRINGING US A MORE FORMAL PROPOSAL? [00:50:05] IS THIS AN IDEA THAT Y'ALL ARE INTERESTED IN AND DO YOU HAVE THIS IS THIS IS THE TIME WHEN WE SAY NO, I HAVE HESITATIONS. NO, I HAVE THESE CONCERNS. SO. ANYTHING? NO, I'M INTERESTED, MAYOR. VERY INTERESTED, WE'VE GOT TO MOVE SOME OF THESE PLACES FORWARD. WE DO. COUNCIL MEMBER STANLEY. AGREED, YEAH, I THINK IT'S ONE MORE LAYER THAT'LL HELP US CREATE MORE HOMEOWNERS AND OPPORTUNITY. OK, I'M IN AGREEMENT AND TO ME, IF WE'RE DOING IT, IT OUGHT TO ALSO HAVE DOWNTOWN HOUSING BECAUSE RESIDENTIAL IS A NEED FOR DOWNTOWN. ABSOLUTELY. OK. OK. THANK YOU, GUYS FOR THE WORK Y'ALL ARE DOING ON THIS. THANK YOU. IT'S GOING TO BE INTERESTING TO WATCH. OK, NEXT ON THE AGENDA IS TO DISCUSS ON SITE CLINIC PROVIDER SERVICES KIND OF [1.D. Discuss Onsite Clinic Provider Services] GOES DNA KIND OF GO TOGETHER WITH THE WELLNESS PLAN ADMINISTRATIVE SERVICES MR. CITY MANAGER. ALL RIGHT, MARY, WE HAVE LAURA STORRS, CHIEF FINANCIAL OFFICER, ASSISTANT CITY MANAGER, TO PRESENT THE FIRST ITEM. WE ALSO HAVE RANDY MCGRAW WITH HUB, WHO'S OUR CONSULTANT ON BOTH OF THESE NEXT ITEMS. HERE TO ANSWER ANY QUESTIONS, OF COURSE, LAURA IS GOING TO DO A BETTER JOB OF INTRODUCING HIM AND POINT HIM OUT AND EVERYTHING. BUT LAURA, TAKE IT AWAY. ALL RIGHT. GOOD AFTERNOON, MAYOR AND COUNCIL. SO I WANTED TO BRING SOME INFORMATION ON A AN RFP, A LARGE SCALE AND A NEW RFP THAT WE HAVE RECENTLY BEEN WORKING THROUGH. AND AS YOU KNOW, WE HAVE HAD A CITY EMPLOYEE CLINIC FOR MEMBERS OF OUR HEALTH PLAN FOR MANY YEARS NOW, AND THAT HAS BEEN RUN INTERNALLY BY THE CITY OF AMARILLO. AND SO WE HAVE SEEN OVER THE YEARS AS HEALTH CARE CONTINUES TO EVOLVE, THAT THESE CLINICS ARE BECOMING SOMETHING THAT THIRD PARTY PROVIDERS ARE, THEY ARE EXPERTS IN AND THEY CAN BE AT TIMES MORE EFFICIENT THAN WE CAN. HEALTH CARE IS NOT OUR NUMBER ONE SPECIALTY HERE AT THE CITY OF AMARILLO, AND SO WE DECIDED IT WAS TIME TO EXPLORE WHAT OTHER OPTIONS ARE OUT THERE BECAUSE THIS HAS BEEN A HUGE BENEFIT FOR OUR EMPLOYEES AND THE MEMBERS OF OUR HEALTH PLAN. AND SO ON. THIS FIRST SLIDE HERE WE WE WENT THROUGH AN EVALUATION PROCESS. THIS WAS A REQUEST FOR PROPOSALS AND WE HAD A PANEL OF FIVE CITY STAFF. THIS INCLUDED OUR HR DIRECTOR, MYSELF, OUR BENEFITS AND WELLNESS MANAGER, OUR CHIEF INFORMATION OFFICER AND OUR RISK MANAGER. AND AS YOU ALL ARE AWARE, THE WAY AN RFP WORKS IS WE EACH INDIVIDUALLY SCORE AND THEN ALL THE SCORES ARE COMPILED TOGETHER. AND THEN WE IN THIS SITUATION, WE WENT ON TO A BEST AND FINAL OFFER, AND THIS OUTLINES THE CRITERIA IN THE SCORING POINTS THAT WE UTILIZE DURING BEST AND FINAL FOR THIS PROCESS. WE ALSO WORKED WITH OUR HEALTH CARE CONSULTANT RANDY MCGRAW FROM HUBB, AND HE DID NOT SCORE AND HE DID NOT DIRECT US. BUT HE HELPED INTERPRET SOME OF THE HEALTH CARE INFORMATION THAT AGAIN, AS I MENTIONED, WE'RE NOT ALL EXPERTS NECESSARILY, AND SOME OF THE FINE DETAILS, AND SO HE HELPED NAVIGATE HELPED US NAVIGATE A LOT OF THAT. SO AS YOU CAN SEE, PURCHASE PRICE AND DISCOUNTS IS AN IMPORTANT PART OF A ESPECIALLY A LARGE SCALE PROJECT LIKE THIS, BUT IT SHOULD NOT CONTROL THE ENTIRE OUTCOME. SO WHAT WE DID IS WE WE ASSIGNED 40 POINTS TO IT, AND RANDY WITH HUB ALSO HELPED US FIGURE OUT KIND OF FROM A BEST PRACTICE STANDPOINT ON OTHER CITIES THAT HAVE WORKED THROUGH PROCESSES LIKE THIS. HE HELPED US KIND OF WORK THROUGH WHAT SCORING CRITERIA AND POINTS ARE APPROPRIATE IN A PROCESS LIKE THIS. ALL OF THE PRICING AND THE PURCHASE AND THE DISCOUNTS WERE ALL ANALYZED IN CONJUNCTION WITH OUR PURCHASING DEPARTMENT AND WITH OUR HEALTH CARE CONSULTANT. AND SO THOSE WERE THE SAME NUMBERS ACROSS THE BOARD ON THE FIVE SCORING MEMBERS. WE ALSO HAD TWENTY FIVE POINTS FOR ADMINISTRATIVE FLEXIBILITY. WE HAD 15 POINTS FOR THE QUALITY OF THE VENDORS, GOODS AND SERVICES, 10 POINTS FOR REPORTING CAPABILITIES, WHICH ARE VERY IMPORTANT FROM AN INTERNAL PERSPECTIVE. WE HAD FIVE POINTS FOR THE REPUTATION OF THE VENDOR AND THEIR GOODS AND SERVICES, AND THEN FIVE POINTS FOR ANY VENDORS THAT WE HAPPEN TO HAVE A PAST RELATIONSHIP WITH. AND WE CERTAINLY DID NOT HAVE A PAST RELATIONSHIP WITH ALL OF THESE VENDORS. ON THE NEXT SLIDE DURING OUR BEST AND FINAL OFFER. FIVE VENDORS PRESENTED PROPOSED BIDS FOR THIS ON SITE CLINIC SERVICE. WE HAD TWO ADDITIONAL VENDORS THAT CHOSE NOT TO PARTICIPATE AND BEST IN FINAL. THEY WERE WELCOME TO PARTICIPATE. THEY DID NOT, SO WE USE THEIR ORIGINAL PROPOSAL AS WE EVALUATED. SO WE HAD A TOTAL OF SEVEN VENDORS. WE ARE VERY PLEASED WITH THAT MANY VENDORS INTERESTED IN HELPING US WITH THIS IMPORTANT SERVICE. SO ON THE NEXT HERE, WE GO ON THIS SLIDE HERE. WE ACTUALLY, THROUGH BEST AND FINAL DECIDED WE WANTED TO LOOK AT THIS TWO WAYS. TWO OPTIONS, BECAUSE WE KEPT HEARING FROM THE DIFFERENT VENDORS THAT THERE'S [00:55:05] OBVIOUSLY DIFFERENT WAYS YOU CAN STAFF THESE CLINICS. THE FIRST OPTION WE ASKED FOR WAS WE WANT TO SEE WHAT THIS LOOKS LIKE IF WE HAD A FULL TIME, ONE FULL TIME PHYSICIAN. WE ALSO WANTED A FULL TIME HEALTH CENTER MANAGER OR REGISTERED AND OR REGISTERED NURSE, AND THEN TWO FULL TIME MEDICAL ASSISTANCE. THE SECOND OPTION, AS YOU COULD IMAGINE, IT IS A LITTLE BIT SCALED BACK OF AN OPTION. WHEN YOU HEAR THIS, IT'S A PART TIME PHYSICIAN. WE HAVE A FULL TIME NURSE PRACTITIONER, ONE FULL TIME HEALTH CENTER MANAGER, REGISTERED NURSE AND TWO FULL TIME MEDICAL ASSISTANCE. SO AS WE WERE LOOKING THROUGH THIS, WE JUST WANTED TO SEE, YOU KNOW, WHAT WAS AVAILABLE. WE DID TALK TO OUR HEALTH CARE CONSULTANT. WE EVEN TALK TO OUR PHYSICIAN THAT WORKS AT OUR CURRENT CLINIC. JUST DO WE NEED A FULL TIME PHYSICIAN? YOU KNOW, IS THIS ENOUGH THAT A PART TIME PHYSICIAN COULD WORK THROUGH THIS? AND WE CAME TO THE CONCLUSION THAT OPTION TWO WAS, IS THE RECOMMENDED OPTION THAT OUR OUR PANEL WANTS TO RECOMMEND TO COUNCIL. SO WE SCORED EACH ONE INDIVIDUALLY AND THEN ACTUALLY OUR NUMBER ONE WITH THE MOST POINTS ACTUALLY WAS NUMBER ONE ON BOTH OPTIONS. BUT AS YOU CAN SEE ON HERE, WE WERE RECOMMENDING OPTION TWO WITH THE PART TIME PHYSICIAN BECAUSE THAT'S CLOSER ALIGNED WITH WHAT WE HAVE RIGHT NOW AT OUR CLINIC AND WE KIND OF WOULD LIKE TO CHANGE THINGS. SO WE HAVE MORE OF AN APPLES TO APPLES COMPARISON AND THEN REEVALUATE IN THE FUTURE. IF THIS IS SOMETHING WE WANT TO STEP UP SERVICES AND HAVE A FULL TIME PHYSICIAN ON STAFF. SO OUR RECOMMENDATION THAT WILL BE COMING FORWARD LATER ON BASED ON THE RESULTS OF THIS PROCESS IS CARE. ATC INC IS THE RECOMMENDED VENDOR. IT WAS THE HIGHEST EVALUATED PROPOSAL, AS I MENTIONED OUT OF BOTH OPTIONS, AND WE ARE WE'RE GOING TO RECOMMEND A THREE YEAR CONTRACT WITH A RENEWAL OPTION FOR TWO ADDITIONAL ONE YEAR TERMS ON THIS OPTION TWO. DOWN BELOW WHICH KIND OF WALKS YOU THROUGH THE COST. SO THE THREE YEAR CONTRACT WOULD BE ONE MILLION NINE HUNDRED AND FIFTY FIVE THOUSAND EIGHT HUNDRED SEVEN. THAT DOES INCLUDE THE FIRST YEAR IMPLEMENTATION FEES. SO IN OUR CURRENT FISCAL YEAR BUDGET FOR OUR CLINIC THAT WE'RE RUNNING INTERNALLY OURSELVES, OUR TOTAL BUDGET IS A LITTLE OVER SIX. I'M SORRY, SEVEN HUNDRED AND SIXTY TWO THOUSAND LOOKING AT THE FIRST YEAR COSTS, PLUS THE IMPLEMENTATION FEE ON THIS CONTRACT. THAT WOULD BRING US IN CLOSER TO ABOUT JUST UNDER SIX HUNDRED AND EIGHTY NINE THOUSAND, WHICH IS A COST SAVINGS OVERALL. AND I THINK WHAT'S DRIVING THAT IS JUST THIRD PARTIES, THESE THIS GROUP ALONG WITH MOST OF THE VENDORS, THIS IS WHAT THEY DO FOR A LIVING. THEY'RE VERY EFFICIENT IN RUNNING CLINICS, AND SO DO HAVE WAYS THAT THEY CAN SHOW SOME COST SAVINGS FROM WHAT WE'VE CURRENTLY BEEN EXPENDING. THERE IS AN EXPECTED ABOUT SIX MONTH IMPLEMENTATION PERIOD. AND AGAIN, JUST DEPENDING ON WHAT COMES THROUGH THAT, IT COULD POTENTIALLY MAKE THAT 688 NUMBER MOVE JUST SLIGHTLY. SO LET'S TALK A LITTLE BIT ABOUT THE DETAILS OF WHAT WE WOULD BE RECOMMENDING. WITH THIS, WE WOULD BE RECOMMENDING THAT WE CONTINUE TO UTILIZE OUR EXISTING LOCATION AT 8:10 SOUTH BUCHANAN STREET. WE WOULD ALLOW OUR CITY OF AMARILLO EMPLOYEES, PRE SIXTY FIVE RETIREES AND FAMILY MEMBERS ENROLLED IN OUR MEDICAL PLAN TO USE THESE CLINIC SERVICES AT A ZERO CO-PAY. AND THAT'S THE SAME AS WHAT WE'RE DOING RIGHT NOW. WE ALSO WOULD LOOK TO CONTINUE TO OWN THE FACILITY AND LEASE THE FACILITY OUT TO THE CONTRACTOR AT A VERY MINIMAL AMOUNT, AND THAT WAS OFFERED UP THROUGH [INAUDIBLE] AND FINAL AS AN OPTION FOR ALL OF THE VENDORS. WE ALSO WOULD DISCUSS IF THEY WOULD LIKE TO PURCHASE SOME OF THE EXISTING MEDICAL EQUIPMENT. THAT WOULD BE SOMETHING THAT COULD BE NEGOTIATED THROUGH THE PROCESS AS WELL. SO TALKING ABOUT OUR CURRENT CITY EMPLOYEES, BECAUSE THAT WAS CERTAINLY THE BIGGEST PART, WE WERE ONE OF THE BIGGEST PIECES THAT WE WANTED TO MAKE SURE WE WORK THROUGH. SO IN THE RFP, WE REQUESTED THAT OUR CURRENT CITY CARE EMPLOYEES BE GIVEN AN OPPORTUNITY TO INTERVIEW WITH WHOEVER WHOMEVER CAME IN, AS IS THE NEW THIRD PARTY ADMINISTRATOR AND BE CONSIDERED FOR ANY OPEN POSITIONS WITH THE NEW VENDOR AT THE EXISTING CLINIC. SO ANY OF THESE EMPLOYEES THAT ARE NOT OFFERED A POSITION WITH THE NEW VENDOR, THEY AS ALWAYS, COULD LOOK FOR ANY OPEN POSITION WITHIN THE CITY OF AMARILLO. AND OUR HR DEPARTMENT IS GOING TO WORK SPECIFICALLY WITH EACH INDIVIDUAL CASE TO TRY TO HELP ME MEET THEIR NEEDS TO THE BEST OF OUR ABILITY. AND WITH THAT, I WOULD BE WILLING TO ANSWER ANY QUESTIONS THAT YOU ALL HAVE. [01:00:01] AND AS I MENTIONED, WE JUST WANTED TO BRING THIS TO YOU. THIS IS A BIG CHANGE FOR US WANTING TO TALK THROUGH IT TO SEE IF WE COULD ANSWER QUESTIONS, IF WE NEED TO BRING MORE INFORMATION WE CAN, AND THIS WOULD BE ON A FUTURE AGENDA FOR COUNCIL CONSIDERATION. OKAY. MS. LAURA, YOU SAID THE CLINIC IS AT 18 SOUTH BUCHANAN STREET. SO IS THAT IN THE SIMS BUILDING? YES, MA'AM. SO SIMS IS EIGHT 08, BUT I THINK THE WAY THE ADDRESSING WORKS, THAT PIECE OF IT IS AT 810 SOUTH BUCHANAN. SO YOU ARE CORRECT, IT'S IN THAT... ON THE NORTH, NORTH SIDE OR SOUTH SIDE. YEAH, IT'S ON THE SOUTHEAST CORNER OF THE SIMS BUILDING, OK, THANK YOU. ABOUT HOW MANY EMPLOYEES, LAURA, THEN ARE CITY EMPLOYEES ARE AFFECTED BY THIS? I BELIEVE IT'S FIVE TO.. MITCH IS IN THE BACK I SEE HIM. AND MS. LAURA, THAT'S PROBABLY GOING TO BE THE FIRST FLOOR, RIGHT? YES. HOW MANY, MITCH HOW MANY EMPLOYEES ARE OVER THERE? OUT. YES, IT'S VERY SIMILAR. AND I WILL SAY, AND MAYBE I MAY BE SAYING TOO MUCH, BUT OUR CURRENT PHYSICIAN IS LOOKING TO RETIRE AT SOME POINT. SO THAT'S I DON'T THINK THAT'S ONE THAT WE WOULD BE CONSIDERING. I THINK ALL OF US HAVE A PLACE OF EMPATHY THAT WE JUST, YOU KNOW... FOR OUR CITY EMPLOYEES THAT'S A BIG CHANGE FOR THOSE CITY EMPLOYEES. A VERY BIG CHANGE. I APPRECIATE THAT Y'ALL ARE TAKING AS MUCH CARE AS YOU CAN TO TRANSITION THAT. AND ONE OTHER THING I WANTED TO MENTION ON THAT END IS MITCH NORMAN, OUR HR DIRECTOR HAS BEEN TALKING WITH THEM THROUGH EVERY STEP OF THIS PROCESS. WE DID NOT WANT TO BLINDSIDE ANYONE OR THEM TO HEAR IT FROM SOMEONE ELSE. AND SO MITCH HAS BEEN VERY OPEN AND HONEST WITH THEM, TRYING TO ANSWER ANY QUESTIONS THAT THEY MAY HAVE AND WALK THEM THROUGH THIS, NOT KNOWING FOR SURE WHICH YOU KNOW WHAT THE OUTCOME WOULD BE BECAUSE IT'S COUNCIL'S DECISION, BUT WANTED DIDN'T WANT ANY SURPRISES FROM THAT GROUP. APPRECIATE THAT THE OTHER QUESTIONS. OK. SO I DO HAVE ONE OTHER QUESTIONS, SO WHEN DO YOU EXPECT BRINGING BACK A PROPOSAL TO COUNCIL TIME FRAME WISE? WE WOULD BRING, WE WOULD PLAN ON BRINGING THIS AT THE NEXT COUNCIL MEETING AND I BELIEVE THAT'S JANUARY 11TH. OK, THANK YOU. OK. GO AHEAD, LAURA. [1.E. Discuss Wellness Plan Administrative Services] AS WELL AS THE NEXT ONE, SO WE'VE GOT SANDY. YES, ABSOLUTELY. WE HAVE ONE OTHER ONE AND IT'S GOING TO WORK SIMILAR FROM THE TIMING STANDPOINT. TALKING ABOUT IT TODAY WOULD BRING IT FOR CONSIDERATION AT THE NEXT COUNCIL MEETING. WELCOME, SANDY. HELLO. NICE TO SEE EVERYONE AGAIN AGAIN. I GOT INTRODUCED. SANDY ELLIOTT, BENEFITS AND WELLNESS MANAGER FOR THE CITY OF AMARILLO. SO WHAT I THOUGHT BEFORE I GET STARTED WITH MY PRESENTATION, I HAD PREVIOUSLY PROVIDED YOU AN OVERVIEW. IT WAS A FEW MONTHS BACK ABOUT SOME OF OUR WELLNESS ACCOMPLISHMENTS. SO THIS KIND OF TIES IN WITH OUR THE NEXT TOPIC PRESENTATION THAT I HAVE FOR YOU. SO I KIND OF WANTED TO GIVE YOU AN OVERVIEW OF EVERYTHING WE'VE ACCOMPLISHED IN 2021. SO AS A REMINDER, IN MAY, WE CREATED THE CITY OF AMARILLO WELLNESS TAGLINE AND LOGO. IN JUNE, WE LAUNCHED THE CITY OF AMARILLO WELLNESS PROGRAM. WE INTRODUCED WONDER HEALTH, WHICH IS A 10 WEEK WEIGHT LOSS PROGRAM, WHICH WE OFFER TO CITY EMPLOYEES ENROLLED IN MEDICAL BENEFITS. THE FIRST SESSION WE LAUNCHED IN JUNE, WE HAD ONE HUNDRED AND SIXTY PARTICIPANTS. IN THAT FIRST SESSION, PARTICIPANTS LOST ON AVERAGE SEVEN POUNDS WITH THE TOTAL OVERALL WEIGHT LOSS OF SIX HUNDRED AND THIRTY POUNDS, AND I EVEN HEARD FROM A MANY, SEVERAL FOLKS THAT THEY LOST, YOU KNOW, TWENTY FIVE POUNDS OR MORE JUST IN 10 WEEKS. AND THEN WE HAD A SECOND SESSION IN OCTOBER AND WE HAD 50 PARTICIPANTS. AND ON JUNE 14TH IS WHEN WE LAUNCHED OUR CITY OF AMARILLO WELLNESS AND BENEFITS PORTAL. IN JULY, WE HAD OUR FIRST GROUP SIX WEEK WALKING CHALLENGE. WE HAD 86 PARTICIPANTS WITH 15 TEAMS CREATED. OUR TOP CONTENDERS WALKED AN AVERAGE OF FIVE POINT EIGHT MILES A DAY DURING THE 42 DAY CHALLENGE. IT'S PRETTY GOOD. IN OCTOBER, WE HAD A SECOND GROUP FOR WEEK DRINKING WATER CHALLENGE. WE HAD FIFTY EIGHT PARTICIPANTS WITH NINE TEAMS CREATED, AND THEY DRANK A TOTAL OF NINETY SIX THOUSAND SEVEN HUNDRED FORTY ONE OUNCES OF WATER. WHERE NINETY TWO PERCENT OF THE SURVEY RESPONDENTS IMPROVE THEIR HYDRATION HABITS DURING THE CHALLENGE. WE ALSO OFFERED FREE TOBACCO SENSATION CLASSES TO CITY EMPLOYEES, THEIR [01:05:03] LEGAL SPOUSES AND CHILDREN 18 YEARS OF AGE OR OLDER. WE HAD TWO SESSIONS, ONE WAS HELD IN AUGUST AND THE SECOND IN SEPTEMBER, WHERE WE HAD EIGHT EMPLOYEES ATTEND. WE ALSO ARE CONTINUE TO OFFER LOCAL GYM DISCOUNTS ON MEMBERSHIPS FOR EMPLOYEES AND FAMILY MEMBERS. AND WE ALSO IN SUPPORT OF FINANCIAL WELLNESS, WE HAD A FALL 2021 WEBINAR SERIES THROUGH NATIONWIDE. AS WE CONTINUE TO GROW AND EXPAND OUR WELLNESS PROGRAM, WE FEEL THE ADDITION OF A WELLNESS ADMINISTRATOR WILL ENHANCE OUR CURRENT PROGRAM INTO TWENTY TWENTY TWO. NEXT, I WILL SHARE WITH YOU THE RESULTS OF THE WELLNESS ADMINISTRATIVE SERVICES RFP AND THE STAFF'S RECOMMENDATION. SO LAURA WENT OVER THE EVALUATION PROCESS, SO I THINK SHE UNLESS YOU GUYS WANT ME TO GO INTO FURTHER DETAIL, IT MIRRORS WHAT WE DID WITH ON SITE CLINIC. DO YOU GUYS WANT ME TO GO INTO MORE DETAIL ABOUT THAT? IT'S THE SAME PROCESS THAT WE USED. OK. I THINK YOU CAN SKIP IT. OK. SO DURING BEST AND FINAL OFFERS, THREE VENDORS PRESENTED PROPOSED BIDS FOR WELLNESS SERVICES. THE STAFF RECOMMENDATION IS TO AWARD THE WELLNESS ADMINISTRATIVE SERVICES TO VIRGIN PULSE WITH A TWO YEAR CONTRACT AT AN ANNUAL COST OF SIXTY THOUSAND THREE HUNDRED AND EIGHT DOLLARS. SO SOME OF THE KEY ADVANTAGES. WE HAVE, THEY HAVE A ROBUST, ROBUST ONLINE PLATFORM AND MOBILE APPLICATION. THEY HAVE A SUITE OF COMMUNICATION TOOLS, MOBILE, DIGITAL AND OFFLINE COMMUNICATIONS, INCLUDING AN ANNUAL COMMUNICATION ALLOWANCE. THEY HAVE A VARIETY OF DELIVERY TACTICS THAT ENABLE US TO REACH EMPLOYEES IN THE FIELD OFFICE OR ANYWHERE IN BETWEEN. THERE'S A ONE STEP PROCESS FOR EASY ENROLLMENT FROM A SMARTPHONE. THEY HAVE INDIVIDUALIZED COMMUNICATIONS BASED ON EMPLOYEES INTERESTS, PLATFORM ACTIVITY AND PROGRAM MILESTONES, WHICH INCLUDES SYSTEM GENERATED EMAILS, PUSH NOTIFICATIONS AND SITE POP UPS GEARED TO EACH INDIVIDUAL. THE PORTAL ALLOWS YOU ALSO ALLOWS US TO PROMOTE COMPANY BENEFITS, EVENTS AND CHALLENGES, WHICH INCLUDES OPTIONS FOR RSVP'S AND ADDING TO THE COUNT TO YOUR CALENDAR. THERE'S ALSO AN AUTOMATED ENROLLMENT CAMPAIGN NOTIFICATION FOR NEW HIRES. EMPLOYERS EMPLOYEES CAN VIEW THEIR BENEFITS AND WELLNESS IN ONE PLACE AND SAVE THEIR FAVORITE OR MOST USE OF BENEFITS IN ONE AREA. THEY ALSO HAVE A WELLBEING CHAMPIONS TOOLKIT THAT CAN HELP IMPROVE PROGRAM ENGAGEMENT. AND ALSO, THERE'S AN OPTION AVAILABLE TO ADD SPOUSES TO THE PLATFORM. IS THERE ANY QUESTIONS? SOUNDS PRETTY AWESOME. OK. THANK YOU, SANDY. SO, JARED, THAT THOSE TWO THINGS WE WOULD ANTICIPATE ARE COMING ON OUR JANUARY AGENDA FIRST. FIRST MEETING, MAYBE. YES, MA'AM, WE WILL HAVE IT ON THE FIRST MEETING IN JANUARY. I ANTICIPATE UNLESS COUNCIL HAS ANY QUESTIONS IN THE LEAD UP TO THAT ITEM, WE WOULD PUT THAT ON CONSENT, BUT WE CAN OBVIOUSLY DISCUSS THEM AS WELL. HOWEVER, COUNCIL WANTS TO DO IT, BUT WE WILL SHOOT FOR JANUARY 11TH. OK. I THINK YOU HAVE THAT. ITEM ONE F IS DISCUSSED DOWNTOWN PARKING MANAGEMENT MR. [1.F. Discuss Downtown Parking Management] CITY MANAGER. RIGHT, MAYOR. WE JUST GOT FINISHED TALKING WITH ANDREW ABOUT THE SOME OF THE CHANGES THAT WE MADE AS WE ARE PREPARING TO ASSIGN THE EMBASSY SUITES PROPERTY AND THE INCENTIVES ASSOCIATED OR THE INCENTIVES ASSOCIATED WITH THE EMBASSY SUITES HOTEL. ONE OF THE THINGS THE ONE CHANGE THAT WE INITIATED IN THE CONTRACT WAS THE TO RIGHT INTO THAT CONTRACT, THE ABILITY TO NOT JUST CHARGE MONEY, TO HAVE PAID PARKING, BUT TO ALSO HAVE AVAILABLE TO US EITHER TO HAVE A HYBRID WHERE YOU HAVE TIMED PARKING AND THEN AND THEN IT TRANSITIONS TO PAID PARKING OR JUST PURE, PURE TIMED PARKING. SO WE DID THAT BECAUSE MAYOR PRO TEM POWELL HAD REACHED OUT AND SAID HEY, I WANT TO TALK ABOUT GOING AWAY FROM PAID PARKING OR MODIFYING HOW WE DO IT. AND I'LL LET COUNCIL MEMBER PRO TEM POWELL GO INTO MORE DETAIL ABOUT WHY SHE WAS REACHING OUT ABOUT THAT. BUT WE DO HAVE THE ABILITY DO THAT NOW. OBVIOUSLY, THERE'S A NUMBER OF CONVERSATIONS THAT WOULD NEED TO TAKE PLACE TO MAKE SURE THAT WE'RE PROPOSING A A FIX OR A CHANGE THAT WOULD FIT WHAT COUNCIL'S GOT DESIRES ARE AND ALSO WOULD ADDRESS THE CONCERNS BEING EXPRESSED BY CITIZENS. SO WITH THAT, SAID COUNCIL MEMBER PRO TEM POWELL. [01:10:03] THANK YOU, JARED. I APPRECIATE THAT. I'M SORRY. YOU'RE GOOD. THANK YOU. I APPRECIATE THAT. NOW, EVER SINCE WE IMPLEMENTED THE PAID PARKING, I'VE HAD A NUMBER OF CITIZENS THAT HAVE CALLED ME OVER THE YEARS, YOU KNOW, FOR ONE REASON OR ANOTHER, BECAUSE IT JUST DIDN'T FIT THEIR BUSINESS MODEL, WHETHER IT BE A RESTAURANT OR A BUSINESS. AND AT THAT PARTICULAR TIME THAT THEY WERE COMING, OF COURSE, YOU KNOW, WE DIDN'T HAVE ENOUGH DATA TO REALLY MAKE AN INFORMED DECISION AS TO WHETHER THE PROCESS WAS GOING TO BE EFFECTIVE OR NOT. AND SO HERE WE ARE NOW, AND I BELIEVE THAT WE'VE GOT ENOUGH DATA AND FACTS TO BE ABLE TO SHOW THE MONEY THAT THE PARKING GARAGE IS MAKING ALSO ALONG WITH PAID PARKING ON THE STREETS AND AROUND HODGE TOWN AS WELL. SO I'LL LET YOU GO AHEAD AND IN PRESENT THE PRESENTATION AND THEN WE'LL GO FROM THERE. OK, SO WHAT IS ON YOUR SCREEN HERE IS PARKING GARAGE REVENUE HISTORY FROM THE LAST THREE FISCAL YEARS. SO I KNOW WE WERE TALKING A LITTLE BIT WELL, WE'RE TALKING ABOUT SEVERAL PIECES HERE. WE'RE TALKING ABOUT THE PAID ON STREET PARKING WORK AND AGAIN, THAT PLAYS RIGHT INTO PARKING GARAGE REVENUE. AND AND I KNOW I'VE BEEN ASKED THE QUESTION, HOW MUCH DO THOSE TWO CORRELATE? AND SO BEFORE WE KIND OF GO OVER THESE NUMBERS, I WANTED TO NOTE THAT WE LOOKED AT THE AMOUNT OF REVENUE THAT CAME IN FROM THE ON STREET PAID PARKING DURING THIS PAST FISCAL YEAR. AND SO THAT WAS FROM OCTOBER 1ST OF 2020 TO SEPTEMBER 30TH AT 2021. AND THAT AMOUNT FROM THE PAID PARKING ALONE WAS A LITTLE UNDER $20000. SO THE NEXT PIECE WE WANTED TO TAKE A LOOK AT IS, OK, WELL, WHAT ABOUT WHAT ABOUT CITATIONS? BECAUSE THAT'S KIND OF ANOTHER EXTENSION OF THE ON STREET PARKING PIECE, WHETHER THAT'S THE PAID PARKING OR THE TIMED PARKING. BECAUSE AS YOU GO FURTHER INTO AS YOU GO FURTHER WEST INTO DOWNTOWN, THERE'S SPOTS THAT ARE JUST SIMPLY TIMED PARKING AND NOT PAID PARKING. AND SO WHEN WE HAD THE NUMBERS, THE SAME NUMBERS PULLED FOR THE SAME FISCAL YEAR OCTOBER 1ST TO 2020 THROUGH SEPTEMBER 30TH AT 2021. THOSE VIOLATIONS PRODUCED ABOUT ONE HUNDRED AND TWENTY TWO THOUSAND DOLLARS IN REVENUE. AND AGAIN, THOSE THOSE TWO NUMBERS WERE INTERESTING, YOU KNOW, BECAUSE THE VIOLATION CERTAINLY ARE PRODUCING MORE REVENUE THAN WHAT THE ACTUAL ON STREET PAID PARKING IS PRODUCING. SO THE NEXT PIECE OF IT WE WANTED TO LOOK AT IS LET'S SEE WHAT IS THIS PARKING GARAGE DOING? AND I REPORT ON THIS PROBABLY QUARTERLY TO THE LDC BOARD. SO THIS IS SOMETHING THAT WE HAND OUT TO THEM AND WE'VE KIND OF MODIFIED IT OVER THE LAST COUPLE OF YEARS JUST TO MEET THEIR NEEDS. IF YOU LOOK AT THIS, THIS THIS CHART RIGHT HERE WITH THE BLUE AND THE RED, THIS OUTLINES BY MONTH THE REVENUE THAT WE'RE SEEING IN OUR PARKING GARAGE. THE BLUE IS JUST THE NORMAL DAILY PARKING REVENUE, AND THE RED PIECES ARE SPECIAL EVENT REVENUE. AND WHAT THAT IS DEFINED IS THAT IS WHEN THERE IS A BALL GAME GOING ON AT GEORGETOWN. IF YOU GO BACK UP, JENNY, CAN YOU GO BACK UP TO THE TOP FOR ME? OK, SO WE'VE GOT TWO, I'M SORRY, THREE FISCAL YEARS BECAUSE WE HATE TO DO TOO MUCH COMPARISON BACK TO FISCAL YEAR 19-20. THAT WAS THE YEAR THE PANDEMIC HIT. AND AS YOU KNOW, THE SOD POODLES HAD TO CANCEL THEIR SEASON, AND SO THINGS WERE A LITTLE BIT SKEWED THAT YEAR. AND SO WE WANTED TO TO LOOK AT THREE YEARS ALTOGETHER SO YOU CAN SEE THE DAILY PARKING REVENUE HAS ACTUALLY IT ACTUALLY GREW DURING THE YEAR THAT WE EXPERIENCED THE ONSET OF COVID, AND IT HAS IT HAS GROWN A LITTLE BIT MORE IN FISCAL YEAR 2021. AND SO WE'RE BRINGING IN ABOUT TWO HUNDRED AND FIVE THOUSAND DOLLARS IN REVENUE. NOW ON THE SPECIAL EVENT SIDE, WE'RE BRINGING IN THIS PAST YEAR, WE BROUGHT IN SIXTY SIX THOUSAND. THE FIRST YEAR THE TEAM PLAYED IN THE PARK OPENED. IT WAS IT WAS HIGHER AT ONE HUNDRED AND TWO THOUSAND DOLLARS. THE ONE THING I REALLY WANT TO MENTION ON THIS CHART RIGHT HERE IS I WANT YOU TO NOTICE HOW FROM MONTH TO MONTH, HOW THE REVENUES ON THE DAILY PARKING SIDE FLUCTUATE. AND SO IF YOU LOOK IN 2021 UP AT THE TOP LEFT FOR OCTOBER AND NOVEMBER, YOU'RE GOING TO SEE A SPIKE IN REVENUES AS COMPARED TO SEVERAL OF THE OTHER MONTHS. NOW DURING THE SUMMER, YOU'RE SEEING THOSE DAILY AMOUNTS HIGHER, BUT IN OCTOBER AND NOVEMBER, JUST AS A REMINDER, THAT IS WHEN WE'RE HAVING THESE BIG EVENTS OVER AT OUR CIVIC CENTER. SO THIS WOULD BE WHEN WE'RE HAVING WRCA AND THE FARM AND RANCH SHOW, AMONG MANY, MANY OTHER EVENTS. AND SO ONE THING THAT WE'RE SEEING IN THIS IS THERE IS CERTAINLY A CORRELATION IN THE USE OF THE PARKING GARAGE BASED ON WHAT EVENTS ARE GOING ON OVER AT THE CIVIC CENTER. [01:15:04] AND SO ESPECIALLY FROM THOSE LARGE SCALE EVENTS, SO WANTED TO CERTAINLY POINT THAT OUT. SO IN YOUR PACKET COUNCIL, THERE IS ANOTHER PAGE, IT HAS SOME YELLOW ON IT, IF YOU'LL PULL THAT OUT. IT'S A LOT OF NUMBERS. AND SO I JUST PROVIDED SOME COPIES IN HERE. WHAT WE'RE LOOKING AT ON THIS IS WE'RE TRYING TO ESTIMATE WHAT THE FUTURE OF THE PARKING GARAGE IS GOING TO LOOK LIKE. AND AGAIN, THERE'S A LOT OF UNKNOWN FACTORS. AND SO AGAIN, JUST FROM OUR BEST ESTIMATES AT THIS POINT IN TIME, WHAT I'VE GOT ON THE FAR LEFT OF THIS YELLOW SHEET FOR YOU ALL. WE START WITH THE ACTUAL REVENUES AND EXPENDITURES FROM THIS PAST YEAR. THE NEXT COLUMN IN IS THE REVENUE AND EXPENDITURES FROM THE CURRENT YEAR'S BUDGET. SO AS A REMINDER, I WANTED TO MENTION ON THAT THAT THERE IS OUR CURRENT PARKING GARAGE FEES ARE TWO DOLLARS AN HOUR OR $7 A DAY. SO ONE THING THAT WAS OUTLINED IN THE DOWNTOWN PRO FORMA AS FAR AS THE PARKING GARAGE IS CONCERNED, AND WE'VE TALKED WITH THE LGC BOARD FOR SEVERAL YEARS ABOUT THIS IS THERE WAS ALWAYS AN INTENTION THAT THEY WOULD PARTICIPATE IN PAYING THE DEBT SERVICE FOR THE PARKING GARAGE. AND SO RIGHT AT THE BEGINNING OF THE PROJECT, AT THE BEGINNING OF THE DEBT SERVICE FOR THE PARKING GARAGE, THE HOTEL OCCUPANCY TAXES WERE FULLY FUNDING THE DEBT SERVICE THAT WAS BEING PAID EACH YEAR. BUT AS WE WENT FORWARD LGC THROUGH THE PARKING GARAGE, NET REVENUES WAS PLANNING TO PROVIDE MORE AND MORE HELP ON THOSE ANNUAL DEBT SERVICE PAYMENTS. SO I IT STARTED BACK IN 2020-2021. THERE WAS THE PRO FORMA OUTLINED ONE HUNDRED AND SIX THOUSAND NEEDED TO BE PAID TO THE CITY TO HELP WITH DEBT SERVICE. IF YOU LOOK ON THE FAR LEFT TOWARDS THE BOTTOM OF YOUR PAGE, YOU'LL SEE A DEBT SERVICE NUMBER OF TWO HUNDRED AND TWENTY SIX THOUSAND TO FIFTY. SO WHAT WE SAW OVER THE FIRST COUPLE OF YEARS OF THE PARKING GARAGE OPERATIONS IS THAT THEY WERE BRINGING IN STRONGER REVENUES THAN I THINK WAS ORIGINALLY ANTICIPATED FROM THE PRO FORMA SO THAT WAS A GREAT THING. AND SO WE WORKED WITH THE LGC BOARD TO GO AHEAD AND PUT IN THEIR BUDGET TO START PAYING AS MUCH DEBT SERVICE AS THEY COULD. SO THE WAY WE GOT TO THE 226 IS THE PRO FORMA OUTLINED ONE HUNDRED AND SIX THOUSAND AND THEN WE HAVE $120000 LEASE ANNUALLY FROM THE HOTEL THAT WE TALKED ABOUT A LITTLE BIT A LITTLE WHILE AGO. SO AS WE STARTED DEVELOPING THE CURRENT YEAR'S BUDGET AND THE CURRENT YEAR IS THE 21-22, THE PRO FORMA OUTLINED IT NEEDED TO STEP UP TO TWO HUNDRED AND TWELVE THOUSAND IN DEBT SERVICE PAYMENTS TO THE CITY. YOU'LL SEE THAT WE KEPT IT FLAT AT THE TWO TWENTY SIX AND EVERYTHING IS WORKING. IF YOU LOOK AT THE BOTTOM, THOUGH, WHERE IT SAYS TOTAL FUNDS AT YEAR END, YOU'LL SEE THAT NUMBER IN THOSE FIRST TWO COLUMNS, IT'S STARTING TO DROP DOWN. SO WHAT THAT MEANS IS THAT THE REVENUES ARE NOT SUFFICIENT TO FULLY ACCOUNT FOR THE EXPENDITURES THAT WE HAVE. SO OVER THE NEXT FEW YEARS, BEGINNING IN 22-23 DEBT SERVICE WAS OUTLINED TO GO UP TO ABOUT THREE HUNDRED AND EIGHTEEN THOUSAND SEVEN FIFTY TO THE CITY. AND THEN IN 23-24, IT WAS OUTLINED TO GO UP TO FOUR HUNDRED AND TWENTY FIVE THOUSAND. AND SO WE ON THIS YELLOW AREA ON YOUR PAGE HERE, WE TRIED TO ESTIMATE WHAT REVENUES POTENTIALLY COULD DO AND HOW WHAT WE WOULD NEED TO TALK ABOUT AND LOOK AT IN ORDER TO SUPPORT WHAT THE PRO FORMA SAID THAT THE LGC SHOULD BE PARTICIPATING TO THE CITY FROM A DEBT SERVICE STANDPOINT. SO ON THIS PAGE HERE IN THE YELLOW AREAS, IF I LEFT EVERYTHING AT THE CURRENT RATES AND IF WE JUST CONTINUE TO JUST NOMINALLY GROW EACH YEAR, THEN I DON'T I DON'T HAVE THIS .. CAN YOU PUSH HER TO THE SLIDE WITH THE YELLOW PAGE OR WHOEVER'S GOT THE GENIE. YOU CAN. YOU CAN. YES, I HAD TOLD HER IT MAY NOT MAKE ANY SENSE WHEN I PUT IT UP. SO BUT WE COULD DO HAVE IT HANDY, GINNY. I DON'T KNOW IF IT'LL FIT. OK, VERY WELL. BUT GINNY, IF YOU HAVE IT, WELL, WE'LL LET HER TRY TO BRING IT UP. SO ON THIS, WE HAD TO START LOOKING AT WHAT'S IT GOING TO TAKE FOR THE PARKING GARAGE TO GO AHEAD AND MEET THOSE PROJECTED AMOUNTS THAT ARE THAT ARE PLANNED TO PAY BACK TO THE CITY? AND SO WHAT WE LOOKED AT IS WE WERE PROBABLY WE'RE NEEDING TO HAVE SOME SORT OF A CHANGE IN THOSE RATES AT THE PARKING GARAGE UNLESS THERE ARE THERE'S A SIGNIFICANT CHANGE, POTENTIALLY AT THE CIVIC CENTER AND THERE'S A LOT MORE LARGE SCALE EVENTS [01:20:03] COMING IN. POTENTIALLY THAT COULD CHANGE THE WAY THESE REVENUE NUMBERS LOOK. BUT WE KIND OF ANTICIPATED EACH YEAR MAYBE NOMINAL GROWTH ABOUT ONE PERCENT YEAR OVER YEAR, BUT NOTHING NO BIG CHANGES BECAUSE WE DON'T HAVE ANYTHING PLANNED AT THIS POINT THAT WE KNOW OF THAT WOULD BRING IN ANY ADDITIONAL LARGE SCALE EVENTS AT THE CIVIC CENTER, ESPECIALLY WHERE IT'S AT AND KNOW THAT THERE'S CERTAINLY SOME CAPACITY ISSUES WITH SOME OF OUR LAST LARGE SCALE EVENTS ANYWAYS. SO WHAT THAT MEANS, THEN, IS EVERYTHING HAS WOULD HAVE TO FALL ONTO THE RATES THAT ARE BEING SET OVER AT THE PARKING GARAGE. THANK YOU, JENNY. SO ON THIS PAGE UP HERE IN THE MIDDLE COLUMN THERE WHAT WE AND AGAIN, THESE ARE JUST IDEAS. IT IS. THIS IS NOT NECESSARILY, YOU KNOW, AT THIS POINT, CERTAINLY A FIRM RECOMMENDATION. THIS IS JUST SOMETHING THAT WOULD MAKE THIS OVERALL ESTIMATE. THESE ESTIMATES WORK ON INTO THE FUTURE. IF COUNCIL LOOKED AT INCREASING THE RATES OVER AT THE PARKING GARAGE UP CLOSER TO, SAY, TEN DOLLARS A DAY AND THREE DOLLARS AN HOUR. THIS WOULD START HELPING GET THE PARKING GARAGE WHERE IT NEEDS TO BE. BUT THEN BEYOND THAT, IT'S SOMETHING THAT WE WOULD NEED. WE WOULD NEED TO CONTINUE LOOKING AT THE RATES. AND ONE OF THE THINGS THAT WE NEED TO, I THINK, CONSIDER IS THE PRO FORMA AND THE EARLY RECOMMENDATIONS FOR PRICING WERE MORE IN THAT AREA AS WE DISCUSSED IMPLEMENTATION OF THE PARKING GARAGE. WE SET THE PARKING RATE AT A LOWER RATE BECAUSE WE WANTED TO EASE PEOPLE INTO THE PARKING GARAGE. BUT THE PARKING RATE THAT WE'RE CHARGING IS NOT WHAT THE EARLY INITIAL RECOMMENDATION WAS. IT IS LOWER THAN WHAT WE INITIALLY RECOMMENDED AND MAYBE FOR SOME COMPARATIVE PURPOSES. THANK YOU JARED ON THAT. SOME COMPARATIVE PURPOSES. AGAIN, THE CITY, WE DON'T OPERATE ANY OTHER PARKING GARAGES EXCEPT FOR THE ONE OUT AT THE AIRPORT, SO WE WANTED TO LOOK AT THAT ONE. SO CURRENTLY, THE AIRPORT DAILY RATES ARE 11 DOLLARS PER DAY, AND THEY ALSO CHARGE TWO DOLLARS PER 30 MINUTES UP TO AN AMOUNT. AND THEN IT GOES OVER TO THE DAILY RATE. AND I DO KNOW THAT A COUPLE OF YEARS AGO, MIKE CONNOR AND HIS TEAM PRESENTED TO YOU ALL ABOUT PLANNED INCREASES. THOSE ARE THINGS THAT YOU DON'T SET AND THEN NEVER CHANGE AGAIN. IT'S SOMETHING THAT NEEDS TO BE LOOKED AT. WE WERE WELL BELOW OTHER AIRPORTS IN OTHER AIRPORTS OF ANY SIZE IN TEXAS, AND SO WE WERE STARTING TO CATCH UP AT THAT POINT. SO WE'RE AT ELEVEN DOLLARS A DAY AND $2 PER 30 MINUTES. SO ANOTHER COMPARISON FOR WHAT IT'S WORTH, WE HAVE TALKED WITH WITH EMBASSY SUITES NOW AGAIN, IT'S A DIFFERENT ANGLE THAT THEY'RE USING THAT PARKING GARAGE. BUT WHAT THEY CHARGE FOR VALET SERVICES TO USE OUR PARKING GARAGE IS 30 DOLLARS PER DAY AND THEY ALSO HAVE ALLOW FOR SELF PARKING IS $15 A DAY, SO YOU CAN SEE THAT STILL AS WELL ABOVE. AND I KNOW IN OUR LGC MEETINGS, HOWARD'S NOT HERE, BUT TALKING WITH DR. SAUER IS I KNOW THAT MONICA OVER AT EMBASSY SUITES HAS SAID THAT THEY HAVEN'T HAD ANYONE HARDLY BAT AN EYE AT THOSE RATES. THEY HAVE, THOSE ARE VERY POPULAR SERVICES, AND THEIR CLIENTELE CERTAINLY UTILIZE THOSE. WE STARTED ALSO LOOKING AT SOME OTHER CITIES NOW. IT'S INTERESTING BECAUSE NOT AS MANY CITIES OWN AND OPERATE PARKING GARAGE, SO WE KIND OF TRIED TO LOOK AT WHAT WE COULD. SO WE WE DID LOOK AT THE TEXAS TECH PARKING GARAGE. IT'S A DOLLAR FIFTY AN HOUR AND IT'S NINE DOLLARS A DAY. SO THAT'S HOW TEXAS TECH DOES THEIRS. LUBBOCK AIRPORT, THEY CHARGE. LET'S SEE. IT'S FOR I THINK I WROTE THIS DOWN WRONG. IT WAS THREE DOLLARS PER 30 MINUTES AND THEN AT 24 HOURS, IT CAPS OUT AT NINE DOLLARS AN HOUR. WE LOOKED AT FOR WHAT IT'S WORTH, AUSTIN HAS A $5 PER HOUR RATE, TWENTY FIVE DOLLARS PER DAY RATE AND EVENING RATE OF $10, WHICH IS HIGHER THAN OUR FULL DAY RATE. THERE'S TYLER HAS SOME SHORT TERM LOTS. THERE ARE A DOLLAR AN HOUR, TEN DOLLARS A DAY. LAREDO HAS SEVERAL PARKING LOTS. THEY CHARGE TWO AND THREE DOLLARS AN HOUR, OR 10 AND 12 DOLLARS A DAY. AGAIN, IT'S A LITTLE BIT TRICKY TO DO A WHOLE LOT OF COMPARISONS BECAUSE THERE'S NOT AS MANY CITIES IN THE STATE OF TEXAS THAT RUN THEIR OWN PARKING GARAGE THE WAY WE DO. SO I WANTED TO MAKE SURE YOU HAD SOME OF THOSE. AND AGAIN, WE'RE GOING BACK TO THE PAID ON STREET PARKING. WE DON'T HAVE A PERFECT FEEL FOR THE CORRELATION OF THE UTILIZATION OF THE PAID ON STREET IN THE AREA AND HOW MUCH IT TRULY AFFECTS WHAT THE TRAFFIC IS GOING INTO OUR PARKING GARAGE. BUT CERTAINLY NO, AS ANDREW MENTIONED IN THE AGREEMENT WITH THE CONVENTION HOTEL, [01:25:01] THAT SOMETHING HAS TO BE IN PLACE, WHETHER THAT'S PAID ON STREET OR TIMED PARKING IN CERTAIN VICINITIES. BUT AS I MENTIONED, YOU KNOW, IT'S IT'S CERTAINLY NOT A LARGE REVENUE SOURCE. YOU KNOW, IT'S LESS IT'S LESS THAN TWENTY THOUSAND A YEAR. THE LARGEST PIECE IS IN THE VIOLATIONS AREA AND THAT IS COMING FROM BOTH THE PAID PARKING AND THE TIMED ON STREET PARKING. AND SO WE JUST WE JUST WANTED TO TALK WITH COUNCIL A LITTLE BIT ABOUT THIS AND SHOW YOU ALL THESE DIFFERENT THINGS GOING ON FROM A PARKING STANDPOINT AND KIND OF WALK YOU THROUGH WHAT SOME OF THIS LOOKS LIKE GOING FORWARD FROM THE PARKING GARAGE STANDPOINT. AND THE MAIN THING ON THE PARKING GARAGE STANDPOINT IS THERE'S OUTSTANDING DEBT ON THAT. AND SO ANYTHING THAT THE LGC THROUGH THE PARKING GARAGE REVENUES CANNOT PAY IS IS SUPPORTED BY THE CITY OF AMARILLO AS HOTEL OCCUPANCY TAX. AND AGAIN, NO PROPERTY TAXES INVOLVED, NO SALES TAXES INVOLVED IN ANYTHING LIKE THAT. BUT IT IS COMING FROM THE CITY'S HOTEL OCCUPANCY TAX AND THAT IS THE PLEDGE ON THE OUTSTANDING DEBT ON THE PARKING GARAGE DEBT. AND SO AGAIN, IT WAS ALWAYS ANTICIPATED THAT AND AS JARED MENTIONED, YOU KNOW, THE THE PRO FORMA HAD OUTLINED HIGHER RATES. WE STARTED LOWER, BUT THIS IS WHERE WE APPEAR TO BE HEADED IF WE'RE GOING TO BE ABLE TO GET THE PARKING GARAGE, TRULY HELPING TO SUPPORT THE DEBT SERVICE COMMITMENTS BACK TO THE CITY. OK. I BELIEVE THE AT THE END OF THE DAY, AND THAT'S A VERY DETAILED ANALYSIS OF PARKING GARAGE PERFORMANCE. AND THEN AS ALSO AS IT RELATES TO ON STREET PARKING AND PAID PARKING. THE NET TAKEAWAY, THOUGH ON PAID PARKING, IS WHILE IT WILL POTENTIALLY UNLESS WE MAKE SOME CHANGES, REDUCE THE OVERALL REVENUE ASSOCIATED WITH THE PARKING FUNCTION, IT IS NOT GOING TO MAKE OR BREAK ANYTHING THAT'S GOING ON. AS LONG AS WE'RE MANAGING THE PARKING AROUND THE PARKING GARAGE, IT WILL STILL PLAY THE ROLE THAT THE PROFORMA REQUIRED FOR THEM TO PUT IN PAID PARKING. AND THAT WAS TO ENCOURAGE PEOPLE TO IF THEY'RE GOING TO BE THERE LONGER TO UTILIZE THE PARKING GARAGE, ESPECIALLY IF THEY'RE LIKE WE ARE IN AN AREA OF MERCURIAL WEATHER, IT ALSO BECOMES A MORE ATTRACTIVE OPTION. OK, COUNSEL, WHAT ARE YOU ALL THINKING? OK, SO I HAVE A FEW QUESTIONS, SO MS. LAUREN WITH THE PRO FORMA PRO FORMA THAT YOU HAVE PREPARED FOR US RIGHT HERE. SO YOU MENTIONED LIKE SOME OF THE BIG EVENTS AT THE CIVIC CENTER, YOU KNOW, LIKE THE FARM AND RANCH SHOW AND RECENTLY? WELL, THAT WAS RECENT. BUT THEN THE WRCA RODEO AS WELL. SO WHAT WOULD THIS DATA BE DEPENDENT UPON THOSE EVENTS AND OTHERS LIKE IT IN ORDER FOR US TO SUSTAIN? THAT IS CORRECT IN THE WAY WE HAVE, THE WAY IT'S IT'S OUTLINED IN THIS IS ASSUMING IT'S ABOUT THE SAME AMOUNT OF TRAFFIC GOING INTO THE PARKING GARAGE. SO THAT WOULD MEAN ABOUT THE SAME AMOUNT OF EVENTS ARE GOING ON. AND AGAIN, YOU SAW THE SPIKE ON THAT FIRST PAGE OR THIS ONE HERE. THOSE MONTHS WHEN WE HAVE A COUPLE OF THOSE REALLY BIG EVENTS, THAT'S WHEN WE'RE SEEING HEAVIER TRAFFIC IN THE PARKING GARAGE FROM A DAILY STANDPOINT. AND SO I THINK THAT'S A GOOD POINT. I JUST ASSUMED EVERYTHING STAYS THE SAME IF SOMETHING CHANGES AT THE CIVIC CENTER. AND IF FOR SOME REASON WE DIDN'T HAVE THOSE LARGE SCALE EVENTS, WE WOULD HAVE TO EVEN LOOK AT ADJUSTING RATES MORE TO MAKE THIS WORK BECAUSE THERE'S NOT REALLY ANY OTHER FACTORS THAT YOU CAN ADD INTO THE EQUATION. SO IF THE VOLUME GOES DOWN, THEN WE'D HAVE TO SUPPORT IT BY INCREASED RATES. NOW, ON THE FLIP SIDE OF THAT, IF SOMETHING WERE TO CHANGE AND WE GOT MORE OF THOSE LARGE SCALE EVENTS COMING IN THROUGH OUR CIVIC CENTER, THEN ACTUALLY, YOU KNOW, IT MIGHT BE A VERY DIFFERENT CONVERSATION FROM A RATE STANDPOINT BECAUSE THE VOLUME IS WHAT WOULD BE SUPPORTING THAT. AND SO POTENTIALLY YOU COULD KEEP THOSE RATES AT AT A LOWER AMOUNT. OKAY. WHAT WAS THE ORIGINAL? I FORGET WHAT WAS THE ORIGINAL PRO FORMA RIGHT? I KNEW YOU WERE GOING TO ASK ME THAT I DO NOT KNOW OFF THE TOP OF MY HEAD JARED DO YOU HAPPEN TO? I WANT TO SAY IT WAS CLOSE. I THINK IT MIGHT HAVE BEEN 10. I WAS THINKING IT WAS 10 AS WELL. YEAH, AND I CAN CONFIRM THAT FOR YOU GUYS. BUT I THINK I THINK IT WAS SOMEWHERE AROUND THAT. SO THE PROPOSAL IS REALLY TO GO BACK TO THE ORIGINAL PRO FORMA. THAT'S CORRECT. AND ADMITTEDLY, THREE YEARS BEHIND THE TIME AT WHICH WE SHOULD HAVE BEEN AT THAT RATE, SO WE COULD LEGITIMATELY SAY WE COULD GO TO A HIGHER RATE. BUT I THINK THIS IS A BIG MOVE. IT WILL BE A BIG MOVE AT THAT TIME, COUNCIL WASN'T UNANIMOUS ON THE $10 RATE. I THINK WE SEE NOW THAT THE REASON FOR THE PRO FORMA PROBABLY WAS VALID, TAKING INTO ACCOUNT THE PENETRATION RATE AND THE UTILIZATION RATE THAT WAS GOING TO GROW OVER TIME AS ACTIVITY INCREASED OVER AT HODGETOWN. [01:30:02] AS AND WE'RE PROBABLY DELAYED ON THAT. BUT AS WE MADE RENOVATIONS AND IMPROVEMENTS OVER AT THE CIVIC CENTER AND AS THE PARKING GARAGE RETAIL AREAS, YOU KNOW, PICKED UP PACE, ALL OF THOSE SUPPRESSED AND DEPRESSED BY TWO, YOU KNOW, ALMOST TWO YEARS OF OF COVID SO. SO, MS., LAURA, IF COUNCIL DECIDES TO MOVE FORWARD WITH ADJUSTING THE THE PARKING BOUNDARIES OR AREAS, WOULD WE BE SCALING BACK AND MOVING MORE TOWARDS THE EAST? I MEAN, YOU KNOW, BECAUSE THE BOUNDARIES NOW, I DON'T REMEMBER EXACTLY WHAT THOSE WERE. I KNOW FROM 10TH STREET TO WAS IT TAYLOR STREET OR WHERE THE BOUNDARIES OF THE PARKING? YEAH, WE WOULD GO AHEAD. I DON'T KNOW THAT WE HAVE. BUT I WILL SAY THIS. WE DON'T HAVE A FORMAL RECOMMENDATION FOR COUNCIL NECESSARILY ON THAT. WE WANTED TO KIND OF PRESENT THE INFORMATION WHERE WE'RE AT, WHAT ESSENTIALLY COULD MAKE THE PARKING GARAGE WORK AND THEN ASK YOU ALL TO DIRECT US, MAYBE ON NEXT STEPS. I MEAN, WE CAN LOOK AT ALL SORTS OF THINGS, YOU KNOW, THAT COULD BE, YOU KNOW, CHANGING FROM PAID PARKING TO MORE TIME TO PARKING. WE COULD CERTAINLY VERY BE VERY STRATEGIC. THERE ARE CERTAIN AREAS IN THE VICINITY OF THE HOTEL AND THE RETAIL SPACE WE WOULD THAT MIGHT LOOK DIFFERENT THAN SOME OTHER AREAS, SOME OF THE PLACES IN DOWNTOWN WHERE THERE'S, YOU KNOW, DINING AND THOSE THINGS, YOU KNOW, PROBABLY WOULD STILL WANT TO MAINTAIN A CERTAIN AMOUNT OF SHORTER, SHORTER TERM TIMED PARKING JUST SO THOSE SPOTS ARE TURNING AND THERE'S AVAILABLE SPACES TO PARK. BUT I MEAN, WE COULD LOOK AT MULTIPLE THINGS. YOU KNOW, I KNOW ANOTHER OPTION WE CURRENTLY USE PARK MOBILE IS OUR APP AND OUR SOFTWARE FOR THE PAID ON STREET PARKING. AND WE HAVE A CURRENT CONTRACT WITH THEM AND IT GOES THROUGH AUGUST 31ST OF 2022. HOWEVER, WE ONLY PAY FOR WHAT WE'RE USING. SO IF FOR SOME REASON, YOU KNOW, COUNCIL DECIDED WE WANTED TO SCALE IT BACK, WE'D ONLY BE PAYING FOR WHAT WE'RE USING ON THE PAID SIDE. THEY DO ALSO HAVE AN OPTION WHERE YOU CAN DO AN INCREMENT OF TIME, WHERE IT'S FREE FOR A CERTAIN AMOUNT OF TIME, AND THEN IT CONVERTS. SO LET'S SAY IT'S LET'S SAY IT'S 15 MINUTES, YOU KNOW, SO YOU COULD HAVE A PARKING SPOT THAT WOULD MIGHT BE FREE FOR THE FIRST 15 MINUTES IF IT WAS MORE OF A JUMP IN AND JUMP OUT AND DO A QUICK ERRAND. BUT IF NEEDED TO STAY LONGER, THEN IT WOULD START CHARGING ON MINUTE 16 OR WHATEVER. SO THERE'S THERE'S A LOT OF DIFFERENT OPTIONS. I MEAN, OR WE COULD IF COUNCIL DIRECTIVES, WE COULD LEAVE EVERYTHING AS IS, YOU KNOW? SO I THINK WE'RE LOOKING FOR MAYBE SOME DIRECTION FROM YOU ALL. IF THEY'RE IF YOU WANT TO DO NOTHING OR IF YOU WANT US TO BRING ANY OTHER IDEAS TO YOU. AND JUST TO SIMPLIFY THAT A LITTLE BIT RATHER THAN SAY, COUNCIL, MAKE THE SAUSAGE, TELL US EXACTLY WHAT YOU WANT US TO DO. WHAT I MIGHT PROPOSE IS IF YOU DO WANT US TO TO EVALUATE MAKING CHANGES. LET US REVIEW BECAUSE THERE'S GOING TO BE SOME UNINTENDED CONSEQUENCES. YOU KNOW, IF WE GO TO TIME PARKING, WHAT IS THE AMOUNT OF TIME, YOU KNOW, IF SOMEBODY NEEDS TO GO TO THE CONVENTION, TO THE CIVIC CENTER AND STAY ALL DAY FOR A CONFERENCE IF WE TAKE AWAY THE PAID OPTION AND THEY'VE GOT TO COME OUT AND MOVE THEIR CAR EVERY NOW AND THEN, IF WE GO TO THE HYBRID, YOU KNOW, WE CAN GIVE A 15 MINUTE OR 30 MINUTE TIME WINDOW WHERE SOMEONE CAN RUN IN AND DO THEIR BUSINESS AND THEN THE AND LEAVE, YOU KNOW, AND YOU KNOW, THE BUT THEY REGISTER WITH THE PARK MOBILE AND EVERYTHING, AND IT NEVER CHARGES THEM ANYTHING. IF THEY STAY LONGER THAN THAT, THEN IT STARTS CHARGING. SO, FOR EXAMPLE, IF THEY'RE AT THE CIVIC CENTER, IF THEY'RE AT A DAY GAME, IF THEY'RE AT A RESTAURANT OR SOMETHING LIKE THAT, OR IF THEY'RE DOING BUSINESS AT ANY OF THE NUMEROUS BUSINESSES INSIDE THE PAID PARKING AREA, I THINK WE NEED TO RESEARCH ALL OF THE IMPACTS. ALL OF THE OPTIONS AVAILABLE TO US DO A COST ANALYSIS AND BENEFIT ANALYZES OF THESE AND BRING OUT SOME RECOMMENDATIONS AS SOON AS POSSIBLE. I DON'T KNOW EXACTLY WHEN THAT WOULD BE, BUT WE DO HAVE A LOT OF FLEXIBILITY WITH PARK MOBILE IN THAT WE CAN CREATE ANY HYBRID, WE CAN GO AWAY FROM THEM OR WE CAN MODIFY WHAT WE'RE DOING WITH THEM. SO WE HAVE A LOT OF OPTIONS AVAILABLE TO US. WE WANT TO MAKE SURE THAT WHATEVER WE RECOMMEND TO COUNCIL IS SOMETHING THAT'S GOING TO BE SUSTAINABLE AND WON'T CREATE ADDITIONAL PROBLEMS OR ANY DIFFERENT PROBLEMS. SO WHAT I WOULD LIKE TO SEE IS DIFFERENT SCENARIOS IN REGARDS TO PAID PARKING TIME TO PARKING, YOU KNOW, ANY ANYTHING ELSE THAT YOU CAN BRING TO COUNCIL FOR US TO LOOK AT FOR THIS PARTICULAR TOPIC. I DO WANT TO DO SOMETHING VERSUS NOTHING. OK, YOU KNOW, AND FOR TO EVALUATE THE BOUNDARIES OF THE CURRENT PARKING. ALSO KEEPING IN MIND AROUND HODGE TOWN AND THE PARKING GARAGE AND THE RETAIL. I MEAN, THERE'S GOING TO HAVE TO BE SOME SORT OF TIMED PARKING OR PAID PARKING IN THOSE AREAS TO CONTINUE TO MAKE THE PARKING GARAGE WORK IS WHAT IS MY OPINION. SO. OTHER GUIDANCE FOR THEM, COUNCIL. [01:35:02] WHAT AGREE WITH? YEAH. OK. COUNCIL MEMBER STANLEY. JUST CURIOUS, WHAT IS THE PROJECTED COST PER DAY AT THESE NUMBERS IF WE'RE AT SEVEN CURRENTLY, IS IT 10, 12, 15. REVENUE. TO TO MAKE THIS WORK? SO WE TO MAKE IN THIS PARTICULAR SCENARIO, WE'RE SHOWING IN 22-23. SO THAT WOULD BE OCTOBER 1ST OF 22, NEEDING TO GO UP TO ABOUT TEN DOLLARS PER DAY, THREE DOLLARS PER HOUR. LEAVE THAT FOR FOR TWO YEARS AND THEN LOOK AT STEPPING THAT UP TO ABOUT $11 A DAY AND THREE FIFTY AN HOUR IN THE YEAR 24-25. LEAVE THAT FOR A COUPLE OF YEARS AND THEN IN 26-27, IT WOULD STEP UP AGAIN TO THREE SEVENTY FIVE AN HOUR AND TWELVE DOLLARS A DAY. AND AGAIN, THIS IS ONE SCENARIO. THIS DOES MAKE THE CASH FLOW AT THE PARKING GARAGE WORK AND ALLOW THEM TO EVENTUALLY FULFILL THE FULL DEBT SERVICE COMMITMENT BACK TO THE CITY. SO I PHRASE THAT POORLY, SO THE THE $12 PER DAY IS NOT WHAT'S NEEDED CURRENTLY TO SERVICE THE DEBT. THE $12 PER DAY IS WHAT'S NEEDED FIVE YEARS FROM NOW. YES, THAT SERVICE, THE DEBT THAT IS CORRECT. NOW WHAT WHAT I PUT IN THIS SCENARIO IS AGAIN, LGC STARTED PAYING A LITTLE EARLIER A LARGER AMOUNT TO THE CITY. SO I TOOK THAT INTO FACTOR AND KIND OF PUSHED OUT THE FULL DEBT SERVICE PAYMENT TO CLOSER TO 25-26, THE ORIGINAL PRO FORMA SAID. IN FISCAL YEAR 23-24, IT NEEDED TO GO UP TO FOUR POINT TWENTY FIVE. SO IF IF COUNCIL WANTED LGC TO MEET THAT MARKER, NO MATTER WHAT'S HAPPENED HISTORICALLY, WE WOULD NEED TO. WE WOULD NEED TO LOOK AT STEPPING THAT UP TO $12 A DAY BY FISCAL YEAR 23-24 TO MAKE THAT WORK. WE MIGHT COULD MAKE IT A YEAR OFF OF EXCESS RESERVES, BUT WE WOULD NOT BE ABLE TO MAKE IT PAST THAT. SO WE NEED TO GET IT UP CLOSER TO THAT TWELVE DOLLARS A DAY TO MAKE THE REVENUES FULLY, SUPPORT THE OPERATING COSTS OVER THERE AND THAT FULL DEBT SERVICE PAYMENT. DOES THAT HELP? THAT DOES, YEAH. OK. OKAY. MS. LAURA, IN THE CURRENT BUDGET YEAR THAT WE'RE IN RIGHT NOW FOR THE EXPENDITURES, IT SHOWS THAT THE OPERATING COST IS LIKE TWO HUNDRED AND NINETY SIX THOUSAND, AND THEN IN THE NEXT BUDGET YEAR, WHICH IS 22-23, THAT DROPS. YES. SO WE'VE HAD A COUPLE OF THINGS GOING ON. FIRST OF ALL, WE HAVE A PLANNED UPGRADE SOFTWARE UPGRADE TO THE PARKING SOFTWARE OVER THERE IN THE PARKING GARAGE. FROM WHAT I'M HEARING FROM WHAT JERRY HAS PROMISED, YOU CAN HOLD HIM TO THIS. I DON'T KNOW IF JERRY'S IN HERE IS THAT IT IS SUPPOSED TO FIX SOME OF THE PROBLEMS WE'VE BEEN HEARING FROM THE OUR CUSTOMERS COMING THROUGH. SO WE'RE EXCITED ABOUT THAT. BUT IT COMES WITH A PRICE TAG, SO THAT IS INCLUDED IN THE CURRENT YEAR BUDGET. ALONG WITH THAT. NO DIFFERENT THAN ANY OTHER BUSINESS, I'D SAY, IN OUR COMMUNITY OR PROBABLY ANYWHERE, WE HAVE BEEN STRUGGLING WITH STAFFING SHORTAGES. AND WHEN IT COMES TO THOSE SPECIAL EVENTS, THE FIRST YEAR THAT THE BALL TEAM WAS PLAYING, WE WORKED WITH A TEMPORARY LABOR GROUP TO STAFF US FOR AND WE SET A RATE. SO THAT'S WHAT WE PAID ALL THE STAFF THAT WORKED AT THOSE EVENTS. THOSE STAFFING AGENCIES HAVE EVEN HAD STAFF SHORTAGES. WE'VE HAD STAFF SHORTAGES, AND SO WE WERE PULLING PRETTY MUCH ANYONE WE COULD FIND OVER TO HELP WORK THOSE SPECIAL EVENTS. BUT WHAT THAT MEANS BY PUTTING CITY EMPLOYEES OVER THERE, WE'RE PAYING TIME AND A HALF. SO THAT HEAVILY DROVE UP OUR COSTS IN THE TWENTY TWENTY TWENTY ONE. SO THIS LAST FISCAL YEAR, NOW WE'RE HOPING THAT WE HAVE A VERY, A VERY CONSERVATIVE ESTIMATE FOR THE CURRENT YEAR BECAUSE WE'VE ALREADY GOT PLANS IN PLACE TO GET THAT BACK UNDER CONTROL. SO IT'S WE'RE PAYING AT A LOWER KIND OF FLAT RATE FOR THOSE SPECIAL EVENTS. SO WHAT I DID IN THE 22-23 IS I WENT BACK TO THE FIRST YEAR THAT THE SOD POODLES PLAYED, AND BECAUSE THAT'S THE YEAR WE USE CONTRACT LABOR AND I GREW THAT BY ABOUT FIVE PERCENT JUST BECAUSE OF INFLATION. AND THEN I SAID, THIS IS KIND OF OUR TARGET TO KEEP OUR EXPENDITURES GOING FORWARD. SO AGAIN, THAT'S ANOTHER ASSUMPTION, YOU KNOW, THAT'S NOT IT'S AN ESTIMATE AT THIS POINT. AND SO THERE'S SEVERAL FACTORS THAT ARE KIND OF COMING INTO PLAY HERE TO MAKE THIS WORK GOING FORWARD. AND AGAIN, THIS IS WHY WE LOOK AT IT ANNUALLY WITH LGC, YOU KNOW, ON THIS BECAUSE IT'S JUST AND IT'S HARD TO PREDICT THE OUTCOMES OF WHAT A PANDEMIC IS GOING TO LOOK LIKE EVEN ON A PARKING GARAGE. OKAY. YEAH. AND I THINK GOING FORWARD, WE SHOULD LOOK AT THIS ON AN ANNUAL BASIS, WHETHER WE, YOU KNOW, DO SOMETHING OR NOT OR MAKE AN INCREASE OR DECREASE. BUT I THINK IT'S ALWAYS GOOD JUST TO HAVE THE OPPORTUNITY TO REVIEW IT, TO BRING IT BACK [01:40:01] TO COUNCIL FOR REVIEW. ABSOLUTELY, WE CAN CERTAINLY DO THAT. THANK YOU, MARY. I APPRECIATE THE OPPORTUNITY TO DISCUSS THIS TOPIC. THANK YOU. I JUST WANT TO SAY THANK YOU TO MAYOR PRO TEM POWELL. I THINK IT'S AN EXCELLENT QUESTION. WE SAID FROM THE GET GO WHEN WE STARTED ALL OF THIS WHEN AT LEAST WHEN WE WERE ELECTED TO COUNCIL IN 2017, THAT WE ALWAYS WANTED TO HAVE THE BEST DATA IN FRONT OF US TO MAKE THE DECISION. WHAT WE DIDN'T HAVE WAS DATA BECAUSE THIS WAS A BRAND NEW THING. SO WE HAD TO MAKE A DECISION ON HOW TO SET THE RATES, NOT KNOWING WHAT THE VOLUME WAS GOING TO BE, NOT KNOWING WHAT THE DEMAND WAS GOING TO BE. ALL OF THAT. AND SO I'M REALLY GLAD THAT YOU DROVE COMING BACK AND LOOKING AT THIS. I WISH WE HAD THREE YEARS OF DATA THAT WASN'T COVID SKEWED, BUT WE DON'T. WE SHOULD AT LEAST LOOK AT THE DATA THAT WE DO HAVE. I ALSO HAVE HAD A LOT OF CITIZENS QUESTION WHETHER OR NOT WE NEED TO CONTINUE ON STREET PAID PARKING, MAINLY FROM BUSINESSES WHO HAVE PEOPLE WHO JUST WANT TO DROP OFF A CHECK OR THEY'RE GOING TO RUN IN, PICK UP TO GO ORDER OF FOOD AND AND IT CREATES FRUSTRATION ON THEIR CUSTOMERS PART. SO I'M INTERESTED, I THINK, JUST REPRESENTING THEIR VIEWPOINTS. I'M INTERESTED IN SOMETHING THAT WOULD BE A FRONT END TIMED, BUT MAYBE WITH A BACK END PAY. SO THE HYBRID OPTION, AGAIN, BECAUSE I RECOGNIZE JUST BY THE CIVIC CENTER, THERE ARE PEOPLE THAT ARE THEY WANT TO PARK AND GO IN AND NOT HAVE TO COME BACK OUT AND, YOU KNOW, MOVE THEIR CAR EVERY TWO HOURS. SO THE OPTION TO BUY AN ALL DAY PASS TO PARK THERE, I THINK, WOULD BE ATTRACTIVE. BUT FOR THOSE BUSINESSES WHO JUST HAVE A QUICK IN AND OUT NEED MAYBE THE FIRST 30 MINUTES OR SOMETHING, I DON'T KNOW HOW THAT LANDS ON YOU GUYS AS A HYBRID OPTION. I WOULD BE INTERESTED IN SEEING THAT. SO THAT'S I JUST WANT TO COMMEND YOU FOR GETTING THIS BACK IN FRONT OF US BECAUSE WE HAVE MORE DATA AND WE ALWAYS SAID WHEN WE GET MORE DATA, WE WILL LOOK AT THIS AND SEE IF THERE'S ANY CHANGE THAT NEEDS TO BE MADE. SO I APPRECIATE THAT. IT ALSO REMINDS ME THAT THERE'S A LARGER PLAN IN PLACE HERE. WHAT WE'RE TALKING ABOUT RIGHT NOW IS THE PARKING GARAGE AND THE DEBT ON THE PARKING GARAGE AND THE REVENUE FROM THE PARKING GARAGE, BUT IT ALL POINTS BACK TO A PLAN THAT WAS STARTED A LONG TIME AGO BY LEADERS THAT SAT IN THESE CHAIRS BEFORE US, AND SO WE HAVE SAID THAT IT IS IMPORTANT FOR GOOD GOVERNANCE TO REPRESENT A LONG WALK IN THE SAME DIRECTION. AND SO LEADERS BEFORE US PUT US IN THE DIRECTION OF DEVELOPING DOWNTOWN. THAT WAS NOT OUR DECISION. IT WAS A DECISION WE INHERITED AND WE'RE WALKING THEIR WALK FOR THEM. BUT IT MATTERS WHAT HAPPENS AT THE CIVIC CENTER. THE PLANS THAT HAVE BEEN PUT INTO PLACE REPRESENT MILLIONS OF DOLLARS AND AT HODGETOWN, AT THE PARKING GARAGE, AT THE EMBASSY. THOSE ARE MILLIONS OF DOLLARS INVESTED IN A PLAN THAT REALLY HINGES ON WHETHER OR NOT WE HAVE BIG EVENTS AT THE CIVIC CENTER AND LOOKING AT THE YELLOW BOX, YOU KNOW, AND HOW THE NUMBERS CHANGE GOING FORWARD. I THINK, WELL, WHAT HAPPENS IF WE LOSE WRCA? WHAT HAPPENS IF WE LOSE THE FARM SHOW? THEY GO SOMEWHERE ELSE THAT IMPACTS US. SO HAVING LESS EVENTS AT THE CIVIC CENTER IMPACTS US JUST AS MUCH. IT IMPACTS US NEGATIVELY, JUST AS MUCH AS HAVING MORE EVENTS. IF WE WERE MORE COMPETITIVE AND HAD MORE EVENTS AT THE CIVIC CENTER, IT WOULD SOLVE THE REVENUE PROBLEM HERE TOO. SO THE LONGER WE GO IN NOT GETTING A SOLUTION IN PLACE AT THE CIVIC CENTER, THE MORE RISK WE HAVE TO THE PIECES THAT PEOPLE BEFORE US PUT INTO PLACE. SO I THINK IT'S REALLY IMPORTANT FOR US TO KEEP THAT EVEN BIGGER PICTURE IN MIND. BUT I JUST WANTED TO SAY THANKS FRIDA, FOR ASKING THE QUESTION AND THANKS, LAURA, FOR PULLING THE INFORMATION. OK. ANYTHING ELSE ON THAT? ALL RIGHT. LET'S GO AHEAD AND DO ITEM ONE G AND THE CONSENT, AND THEN WE CAN TAKE A BATHROOM BREAK IF WE NEED TO. ANYTHING TO PUT TOWARD FUTURE AGENDA ITEMS OR REQUESTING A REPORT FROM THE CITY MANAGER. OK, NO. ANYTHING ON THE CONSENT THAT NEEDS TO BE PULLED OFF FOR FURTHER DISCUSSION OR [2. CONSENT ITEMS] QUESTIONS. NO. OK. DO WE HAVE A MOTION WITH REGARD TO APPROVING THE CONSENT AGENDA? YES, MAYOR, WE DO. I MOVED TO APPROVE THE CONSENT AGENDA AS PRESENTED. SECOND. IT'S BEEN MOVED BY MAYOR PRO TEM POWELL AND SECONDED BY COUNCIL MEMBER SAUER TO APPROVE THE CONSENT AGENDA. ALL OF THOSE IN FAVOR, PLEASE SAY AYE. AYE. [01:45:01] ANYONE OPPOSED. THAT ITEM PASSES WITH THE 4-0 VOTE, AND WE WILL TAKE A SHORT RECESS. LET'S TAKE FIVE MINUTES FOR A QUICK BATHROOM BREAK. [INAUDIBLE] IN THIS ROOM, SO WE ARE DOING A GREAT JOB OF KEEPING OUR ENERGY COSTS ON THE LOW END FOR TAXPAYERS HERE. YEAH, I THINK IT SEEMS LIKE THE AIR CONDITIONER MIGHT ME LIKE THE AIR CONDITIONERS ARE ON. SO DID DID MR. DANFORTH GIVE YOU A DIRECT DIRECTIVE TO DO THAT? I DON'T KNOW. I THINK HE SAW US WITH BLUE LIPS AND SHIVERING UP HERE. MAYBE HE SHIFTED IT A LITTLE BIT. OK, GETTING TO ITEM THREE, THE NON CONSENT PORTION OF OUR AGENDA, LOOKING AT 3-A [3.A. PUBLIC HEARING AND CONSIDERATION OF ORDINANCE NO. 7942] AS A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE NUMBER 7942 MR. CITY MANAGER. HI MAYOR, THIS IS A REZONING ITEM WE HAVE PLANNER 2 BRADY KENDRICK HERE TO PRESENT THE ITEM, BRADY. ALL RIGHT. GOOD AFTERNOON, MAYOR AND COUNCIL. THIS IS A PUBLIC HEARING AND CONSIDERATION OF ORDINANCE 7942 REZONING OF A THIRTY POINT EIGHT NINE ACRE TRACK OF UNPLOTTED LAND IN SECTION SIXTY FIVE BLOCK NINE BNSF SURVEY, RANDALL COUNTY, TEXAS, PLUS ONE HALF OF ALL BOUNDING STREETS, ALLEYS AND PUBLIC WAYS TO CHANGE OUR AGRICULTURAL DISTRICT. THE RESIDENTIAL DISTRICT THREE. THE VICINITY IS WESTON DRIVE AND LEGACY PARKWAY, AND THE APPLICANT IS SETH WILLIAMS FOR PEGA DEVELOPMENT LLC. ADJACENT ZONING CONSISTS OF RESIDENTIAL DISTRICT TWO TO THE NORTH RESIDENTIAL RESIDENTIAL DISTRICT TWO AND THREE TO THE SOUTH AND AGRICULTURAL DISTRICT TO THE EAST AND WEST. ADJACENT LAND USES CONSISTS OF UNDEVELOPED LAND TO THE NORTHWEST AND EAST AND SINGLE FAMILY DETACHED HOMES TO THE SOUTH. THE APPLICANT IS REQUESTING THE CHANGE IN ZONING IN ORDER TO DEVELOP THIS TRACK WITH SINGLE FAMILY HOMES AS THE NEXT PHASE OF THE HERITAGE HILLS SUBDIVISION. ANALYSIS OF A ZONING CHANGE REQUEST BEGINS WITH REFERRING TO THE COMPREHENSIVE PLANS, FUTURE LAND USE AND CHARACTER MAP AND THE REQUESTS IS CONFORMITY TO THE NEIGHBORHOOD UNIT CONCEPT OF DEVELOPMENT. THE FUTURE LAND USE AND CHARACTER MAP IDENTIFIES THE APPLICANT'S TRACK AS A STATE WHICH, WHILE THE APPLICANT'S REQUESTS WOULD NOT STRICTLY CONFORM WITH THAT IN THAT THIS WOULD RESULT IN A HIGHER DENSITY OF HOMES. THEIR QUEST TO REQUEST IS STILL SINGLE FAMILY IN NATURE. THE PLANNING AND ZONING COMMISSION DOES NOTE THAT THE DEVELOPMENT CHARACTERISTICS WITHIN THIS SECTION OF LAND SINCE THE ADOPTION OF THE FUTURE LAND USE MAP HAVE BECOME PREDOMINANTLY HIGHER DENSITY SINGLE FAMILY DETACHED HOMES WHICH ARE PREDOMINANT THROUGHOUT THIS SECTION OF LAND. CONSIDERING THE EXISTING DEVELOPMENT AND ZONING PATTERN IS IN THIS SECTION, IT WAS THE PLANNING AND ZONING COMMISSION'S OPINION THAT A DEPARTURE IN THIS INSTANCE IS JUSTIFIED REGARDING A NEIGHBORHOOD UNIT CONCEPT OF DEVELOPMENT. THE REQUEST WOULD CONFORM WITH THE NUC, THE REQUEST ALSO CONFORMS WITH THE APPROVED PRELIMINARY PLAN FOR THE HERITAGE HILLS SUBDIVISION AND IN THE PLANNING AND ZONING COMMISSION'S OPINION IS A LOGICAL CONTINUATION OF EXISTING ZONING AND DEVELOPMENT PATTERNS IN THE AREA. REGARDING PUBLIC INPUT AND COMMENTS ON THIS, THE PLANNING DEPARTMENT HAS RECEIVED NONE AND RECEIVED AT THE PLANNING AND ZONING COMMISSION ON THIS ITEM. CONSIDERING THE JUST MENTIONED, THE PLANNING AND ZONING COMMISSION RECOMMENDED APPROVAL OF THE REQUEST WITH A SEVEN TO ZERO VOTE. ANY QUESTIONS FOR BRADY, COUNSEL? OK, THANK YOU, BRADY, THANK YOU. AT THIS TIME, WE'LL OPEN A PUBLIC HEARING ON THIS MATTER AND ANYONE PRESENT WHO WISHES TO SPEAK FOR, ON OR AGAINST AGENDA ITEM 3-A MAY DO SO AT THIS TIME, AS ANYONE PRESENT WHO WISHES TO SPEAK. SEEING, NO ONE WILL CLOSE THE PUBLIC HEARING ON THIS MATTER AND ENTERTAIN A MOTION. MAYOR, I MOVED TO ADOPT ORDINANCE NUMBER 7942, APPROVING THE REZONING, A THIRTY POINT EIGHTY NINE ACRE TRACT OF UNPLATTED LAND IN SECTION SIXTY FIVE BLOCK NINE BS&F SURVEY RANDALL COUNTY, TEXAS, PLUS ONE HALF OF ALL BOUNDING STREETS, ALLEYS AND PUBLIC WAYS TO CHANGE FROM AGRICULTURAL DISTRICT TO RESIDENTIAL THREE DISTRICT IN THE VICINITY OF WESTIN DRIVE AND LEGACY PARKWAY. SECOND. IT'S BEEN MOVED BY THE MAYOR PRO TEM, SECONDED BY COUNCIL MEMBER SAUER, TO APPROVE THE PROPOSED ORDINANCE FOR SEVENTY NINE POINT FORTY TWO. ANY FURTHER DISCUSSION OR QUESTIONS? OK, ALL OF THOSE IN FAVOR OF THE MOTION PLEASE SAY AYE. AYE. ANY OPPOSED. OK, THAT MOTION PASSES WITH THE 4-0 VOTE. [3.B. CONSIDERATION OF ORDINANCE NO. 7943] MOVING ON TO AGENDA 3B IS CONSIDERATION OF ORDINANCE NUMBER 7943. MR. CITY MANAGER. HI MAYOR, WE HAVE DIRECTOR OF ANIMAL MANAGEMENT WELFARE VICTORIA MEDLEY HERE TO PRESENT THE ITEMS ORDINANCE REVISIONS JUST TO CLEAN UP THE ORDINANCE AND MAKE IT MATCH WHAT WE DO. YES, WE HAD JUST GONE THROUGH. [01:50:01] ONE OF THE THINGS WE'VE BEEN TASKED WITH STARTING THERE AT THE SHELTER WAS LOOKING AT ALL THE ORDINANCES. THIS OR OUR CURRENT ORDINANCES HADN'T BEEN LOOKED AT SINCE NINETEEN OR 2014 AND IT HAD COME TO WE JUST NEEDED TO CLEAN IT UP IN OUR CURRENT ORDINANCE. IT SAYS THAT THE HUMANE SOCIETY DOES ADOPTION. THEY HAVE NOT DONE ADOPTION SINCE 2019, SO WE JUST WANTED OUR ORDINANCE TO REFLECT THE SERVICES THAT THEY ARE CURRENTLY PROVIDING, WHICH IS FOSTER CARE AND RESCUE SERVICES. HEY, ANY QUESTIONS ABOUT THAT COUNCIL? OK. THANK YOU, VICTORIA. DO WE HAVE A MOTION THEN WITH REGARD TO THE NEW VERSION OF THOSE ORDINANCES, WHICH WOULD BE ORDINANCE NUMBER 7943. YES, MAYOR, I MOVED TO ADOPT ORDINANCE NUMBER 7943 T APPROVE THE AMENDMENTS TO THE AMARILLO MUNICIPAL CODE, CHAPTER 8-2, ARTICLES ONE AND TWO, SECTION EIGHT-TWO-FOUR EIGHT-TWO DASH 12 EIGHT- TWO DASH FIFTY FIVE AND EIGHT DASH TWO DASH FIFTY SEVEN. SECOND. IT'S BEEN MOVED BY THE MAYOR PRO TEM AND SECONDED BY COUNCIL MEMBER SAUER TO APPROVE ORDINANCE NUMBER 7943. ANY FURTHER QUESTIONS OR DISCUSSION? HEARING NONE, ALL OF THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANYONE OPPOSED. THAT PASSES WITH THE 4-0 VOTE. ITEM THREE C IS TO DISCUSS AND CONSIDER FUNDING OPTIONS FOR RENOVATING AMARILLO [3.C. DISCUSS AND CONSIDER FUNDING OPTIONS FOR RENOVATING AIT'AE II I 'T lJAE'NTA'AE'E AG I^ITV IJAI I] HARDWARE AS CITY HALL. MR. CITY MANAGER. ALL RIGHT, MAYOR, THANK YOU. THIS IS A ITEM THAT IS THE CULMINATION OF. 10, 12 YEARS WORTH OF CONVERSATION ABOUT CITY HALL. IT DATES BACK AT LEAST TO COUNCIL MEMBERS PRIOR TO THIS PRIOR TO TWO OR THREE COUNCILORS, DEPENDING HOW YOU COUNT COUNCILS PRIOR TO RIGHT NOW. WE HAVE DISCUSSED WHAT TO DO WITH THIS BUILDING, WHAT TO DO WITH CITY HALL AS A CONCEPT AND AS A CHALLENGE NUMEROUS TIMES MORE THAN A DOZEN TIMES OVER JUST THE LAST FEW YEARS. SO WITH THE LAST COUNCIL MEETING AND OPTIONS THAT WE LOOKED AT WERE SMALL PROJECTS AT THIS BUILDING TO BUY US A FEW MORE YEARS, THREE, FOUR, FIVE YEARS, HOWEVER MUCH IT IS. WE HAVE LOOKED AT MAJOR RENOVATION PROJECT ON THIS BUILDING TO ATTEMPT TO MAKE IT A LONG TERM, LONG TERM HOME. WE HAVE LOOKED AT AMARILLO HARDWARE AS A POTENTIAL FUTURE LONG TERM HOME OF CITY HALL. WE'VE ALSO LOOKED AT BUYING OTHER BUILDINGS, A NUMBER OF OTHER BUILDINGS, BOTH DOWNTOWN AND AROUND TOWN, AS FUTURE HOMES FOR CITY HALL. AFTER HAVING ALL OF THOSE CONVERSATIONS WITH COUNCIL, THE GUIDANCE WAS LAST MONTH AT THE NOVEMBER COUNCIL MEETING TO BRING BACK A FUNDING OPTIONS BRING BACK FUNDING OPTIONS THAT WOULD PAY FOR THE PROJECT AT AMARILLO HARDWARE AND REDUCE SIGNIFICANTLY THE PROPERTY TAX IMPACT OF THAT PROJECT. AND WHAT WE'VE GOT. THE OPTIONS THAT WE HAVE IN FRONT OF YOU TODAY SHOULD REDUCE THE PROPERTY TAX IMPACT OF THAT PROJECT VERSUS WHAT WE HAD ORIGINALLY PROPOSED BY ABOUT JUST OVER 80 PERCENT. SO IT IS A SIGNIFICANT REDUCTION ON PROPERTY TAXES THAT WILL LOOK AT OTHER FUNDING SOURCES LIKE CASH AVAILABLE, CASH ON HAND. WE HAVE CASH TO CONSIDER AT THIS POINT THAT WE DIDN'T HAVE AVAILABLE TO US AT THE LAST TIME THAT WE CONSIDERED THIS PROJECT IN THE FORM OF THE REVENUE RECOVERY FUNDS THAT WE WERE ABLE TO GET FROM THE FEDERAL GOVERNMENT THROUGH THE RPA FUNDS. THE OTHER THING IS THAT WE WILL BE LOOKING AT REVENUE BONDS THAT ARE PAID FOR THROUGH WATER RATES. IT WILL HAVE A MINIMAL IMPACT ON WATER FUND ON WATER RATES, BUT WE'LL ALSO SIGNIFICANTLY REDUCE THE OVERALL TAX IMPACT OF THE PROJECT TAX RATE IMPACT OF THE PROJECT. SO TO PRESENT, ALL OF THE DETAILS ALSO TO INTRODUCE OUR ADVISOR ON THIS. I WANT TO GIVE YOU LORA STORRS, CFO AND CHIEF FINANCIAL OFFICER AND ASSISTANT CITY MANAGER. ALL RIGHT. GOOD AFTERNOON AGAIN. SO I'M GOING TO PASS THIS OVER TO STEVEN ADAMS WITH SPECIALIZED PUBLIC FINANCE AND LET HIM KIND OF GO OVER THE DETAILS OF SOME OPTIONS THAT WE HAVE AVAILABLE FOR COUNCIL. AND SO AS YOU SEE ON YOUR AGENDA THERE. AND AS JARED MENTIONED, THIS ONE IS JUST KIND OF DISCUSS WHAT THE VARIOUS OPTIONS ARE AND THEN WHAT WE HAVE ALLOWED ON THE AGENDA IS FOR COUNCIL. IF COUNCIL SO WISHES, THEY COULD EXERCISE ENTERING INTO ONE OF THE OPTIONS. AND SO, AS MENTIONED, WE DO HAVE CASH ON HAND THAT COULD POTENTIALLY GO TOWARDS A [01:55:02] PROJECT LIKE THIS FROM THE REVENUE RECOVERY, AND THAT IS AT ELEVEN POINT TWO MILLION DOLLARS. AND THEN I'M GOING TO BRING STEVEN ADAMS UP TO TALK ABOUT A COUPLE OF OTHER OPTIONS AND WHAT THAT MIGHT LOOK LIKE FROM A DEBT ISSUANCE STANDPOINT ON DEBT SERVICE STANDPOINT AND THEN THE OVERALL IMPACT TO THE PROPERTY TAX RATE AND TO THE WATER AND SEWER RATES. SO. SO CAN WE GET THIS ONE UP FIRST, RIGHT? ARE WE JUST GOING TO TALK ABOUT? WELL, LET'S TALK ABOUT WELCOME, STEPHEN. THANK YOU. YOU CAN PULL UP THE BACKUP FOR ITEM ONE OR C. SO LET ME JUST TALK GENERALLY WE'VE BEEN WORKING WITH WITH LAUREN'S STAFF AND OUR TEAM AND BOND COUNCIL TO LOOK AT GIVING THREE OPTIONS FOR THE CITY COUNCIL TO CONSIDER FOR PAYING FOR THIS. ONE OPTION WOULD BE AT A FUTURE DATE TO CALL A BOND ELECTION AND HAVE A BOND ELECTION. ANOTHER OPTION WHICH IS ON THE AGENDA TODAY IS FOR THE CITY COUNCIL TO AUTHORIZE PUBLICATION OF INTENT TO ISSUE CERTIFICATES OF OBLIGATION, AND THAT'S THE FIRST ITEM THAT I WILL GO THROUGH. AND THEN THE LAST ITEM IS WE'VE BEEN WORKING WITH WITH FROST BANK SO THAT IF YOU WANTED TO DO A FIVE YEAR FINANCING THAT WE COULD REPAY AT ANY TIME OR REFUNDED ANY TIME, WE HAVE THAT AN OPTION ON THE TABLE. AND FROST BANK HAS AGREED TO BUY A TAX AND REVENUE NOTE, AND WE'LL GO THROUGH THAT AS WELL. AND SO FOR NOW, LET'S JUST LOOK AT THE AGENDA ITEM FOR TAX REVENUE CERTIFICATES OF OBLIGATION. SO RECALL THE WAY THIS PROCESS WORKS. THE FIRST LEGAL ACTION FROM THE CITY COUNCIL IS TO AUTHORIZE PUBLICATION IN THE NEWSPAPER, AND THIS PUBLICATION HAS TO HAPPEN TWO TIMES. THOSE TWO TIMES HAVE TO BE IN CONSECUTIVE WEEKS ON THE SAME DAY OF THE WEEK. AND AFTER THOSE PUBLICATIONS, 45 DAYS AFTER THOSE PUBLICATIONS, THE CITY COUNCIL CAN SELL CERTIFICATES OF OBLIGATION AND AS YOU KNOW, FROM OUR RECENT EXPERIENCE, THAT CAN BE PETITIONED TO AN ELECTION. SO IF YOU AUTHORIZE THIS PUBLICATION TODAY, WE WOULD AUTHORIZE A POWER AMOUNT OF TWENTY THREE MILLION NINE HUNDRED THOUSAND DOLLARS AND CERTIFICATES OF OBLIGATION. THOSE CERTIFICATES WOULD BE CALLABLE IN 10 YEARS. WE ESTIMATE THAT THEY WOULD HAVE A TWO POINT TWENTY TWO PERCENT TRUE INTEREST COST AS OF LAST WEEK, WITH 25 BASIS POINTS OF CUSHION. IT WOULD BE FOR A 30 YEAR TERM. AND IF YOU GO TO THE NEXT SLIDE WORKING WITH THE STAFF AND LOOKING AT THE CURRENT VALUES WITH THE ONE PERCENT GROWTH RATE AND THAT 50 PERCENT OF THESE CERTIFICATES WOULD BE PAID FOR OUT OF REVENUE FROM FROM THE WATER AND SEWER UTILITY, WHO WOULD OCCUPY APPROXIMATELY 50 PERCENT OF THE BUILDING AND 50 PERCENT THAT WOULD BE TAX SUPPORTED. THAT THE ESTIMATED TAX RATE WOULD BE ZERO POINT ZERO ZERO FOUR CENTS FOR THIS BUILDING. AND THEN IF YOU LOOK AT THE THE INSERT AT THE BOTTOM, WE ESTIMATE THAT THE AVERAGE RATE INCREASE FOR A CUSTOMER WHO USES TEN THOUSAND GALLONS PER MONTH WOULD BE FORTY SIX CENTS A MONTH. AND FOR A PERSON WHO USES THE MINIMUM AMOUNT OF WATER THAT TAX RATE INCREASE, I'M SORRY THAT WATER AND SEWER REVENUE RATE INCREASE WOULD BE 25 CENTS PER MONTH. JUST FOR YOUR REFERENCE ON THE BOTTOM, WE HAVE WHAT THE CURRENT UTILITY RATES ARE FOR THAT CUSTOMER WHO USES TEN THOUSAND TEN THOUSAND GALLONS PER MONTH AND ALSO FOR THAT CUSTOMER WHO IS USING THE MINIMUM AMOUNT PER MONTH. STEVEN, CAN YOU PAUSE THIS MINUTE TO CATCH US UP ON WHERE WE ARE IN THE PACKET? LAURA, THAT'S WHAT I'M IF YOU TURN TO PAGE TWO ON, IF YOU LOOK ON THE FRONT OF THE PACKET THAT SAYS FINANCING OVERVIEW SERIES TWENTY TWENTY TWO CERTIFICATES OF OBLIGATION. THREE. NO, NOT FINDING IT TO THE BOTTOM OF THE PAGE, THE STUFF THAT YEAH, WE ADDED THE THE NEW SECTION AT THE BOTTOM OF THE PAGE, RIGHT? DID DID WE SWAP OUT? YEAH, OK, SO WE JUST UPDATED THE PRESENTATION. JENNY, CAN. OK. CAN WE GET SOMEONE? ALL WE NEED IS THAT THIS IS THE ONLY PAGE THAT CHANGED IN YOUR PACKET. OK, WITH THAT LITTLE INSERT FOR WATER AND SEWER, NOTHING ELSE CHANGED. OK, WE'LL GET THEM TO PRINT THAT. [02:00:02] AND IF YOU CAN DO IT FOR THIS PRESENTATION AND THE NEXT ONE, WE'LL WE'LL GET YOU ALL. SO I APOLOGIZE. I DON'T MIND CLEANING A LOT OF MOVING PARTS. YEAH. OH, I SEE THE I SEE THE LITTLE INSERT. OK, RIGHT? WE JUST WANTED TO PROVIDE A LITTLE MORE INFORMATION ON THE IMPACT ON THE WATER AND SEWER RATES AND THEN PROVIDE WHAT THE CURRENT RATES ARE NOW JUST AS A MATTER OF REFERENCE. OK, AND SO JUST LOOKING AT THIS, IF THERE'S ANY OTHER QUESTIONS ABOUT THIS SLIDE, LET ME KNOW. SO YOU SEE THE PRINCIPLE IT'S TWENTY THREE POINT NINE MILLION AND IT RUNS THROUGH TWENTY FIFTY TWO AND THEN THE ACTUAL DEBT SERVICE IS APPROXIMATELY $1.1 MILLION A YEAR. AND THEN WE SEPARATE IT OUT BETWEEN THE WATER AND SEWER REVENUES AND THEN TAX REVENUES. AND AGAIN, IF YOU AUTHORIZE THIS PUBLICATION IN THIS PROCESS AS A WAY TO FINANCE THIS TODAY, WE WOULD ACTUALLY GO THROUGH THE PROCESS AND SELL CERTIFICATES OF OBLIGATION. WHEN WOULD THAT SALE BE PROJECTED TO TAKE PLACE? THAT THAT SALE WOULD TAKE PLACE, I BELIEVE, AT THE MEETING IN FEBRUARY TO FILL IN AT YOUR FEBRUARY MEETING. WE'D BE SELL FEBRUARY THE 8TH AND THEN CLOSING ON MARCH DAY. I'M SORRY, THAT'S BACK ON THE FIRST SLIDE. THAT TIMING. YOU COULD GO. MAYBE I CAN CONTROL IT. GO BACK THE OTHER WAY. THERE IT IS. SO IT'S SO PUBLICATION WOULD YOU WOULD AUTHORIZE PUBLICATION TODAY THAT PUBLICATION PERIOD WOULD OCCUR? AND THEN AT A MEETING ON FEBRUARY THE 8TH, WE WOULD SELL THE CERTIFICATES THAT WOULD GO THROUGH THE PROCESS OF ATTORNEY GENERAL APPROVAL. AND IT WOULD CLOSE ON MARCH THE 8TH. THERE WE GO. THIS IS A SOURCES AND USES OF FUNDS. SO THERE ARE AN ESTIMATED ONE HUNDRED THOUSAND DOLLARS OF COST OF ISSUANCE ASSOCIATED WITH THIS, AND THE REMAINDER OF IT WOULD GO TOWARDS THE CONSTRUCTION. AND THEN FINALLY, NEXT SLIDE, PLEASE. I COULD CONTROL IT. THIS IS JUST WHERE WE ARE ON 10 YEARS OF INTEREST RATES AND WE WE'VE BEEN SHOWING THIS TO EVERYBODY. SO WE ARE AT A VERY FAVORABLE TIME IN TERMS OF INTEREST RATES FOR FOUR SELLING GENERAL OBLIGATION BONDS AT THIS TIME. WHAT'S YOUR PREDICTION ON THAT? OH, I THINK THEY'RE GOING TO CHANGE. THEIR PREDICTION. GIVEN HOW LOW THEY ARE, THEY'RE GOING TO GO UP. WHAT SERIOUSLY, WHAT'S YOUR TIMING? I MEAN, I KNOW NOBODY KNOWS. IT'S SO HARD TO SAY. BECAUSE THE TAX EXEMPT MARKET IS SO MUCH DIFFERENT THAN THE TAXABLE MARKET AND THE WHOLE TIME WE'VE BEEN TALKING ABOUT INFLATION IN THE LAST TWO MONTHS, THEY'VE JUST CONTINUED TO COME DOWN, AS YOU SEE, WITH A FEW EXCEPTIONS. BUT I DON'T THINK THAT THE MUNICIPAL RATES ARE GOING TO GO UP APPRECIABLY OVER THE NEXT YEAR OR SO. BUT WHO KNOWS AFTER THAT IF WE GET A HUGE AMOUNT OF INFLATION BECAUSE INFLATION IS REALLY WHAT SCARES THE BOND MARKET. BUT, YOU KNOW, I'M HOPING WE SEE AT LEAST THREE OR FOUR OR FIVE OR SIX MONTHS OF LOW RATES BEFORE ANYTHING. HAPPENS. THANK YOU, JOHNNY. OK, SO THAT'S THE CERTIFICATES OF OBLIGATION OPTION. WE CAN NOW MOVE TO THE TAX. I KNOW IT'S A DIFFERENT AGENDA ITEM. CAN WE GO AHEAD AND DO THAT ANYWAY? OK, WE'RE GETTING A REPLACEMENT. SO, SO AS I MENTIONED, YOU KNOW, WE'VE BEEN WORKING ON AS MANY OPTIONS AS WE CAN GET TO THE COUNCIL TO LOOK AT. TO LOOK AT OPTIONS FOR FINANCING THIS, AND SO WE WANTED TO PRESENT AN OPTION OF TAX AND REVENUE NOTES NOW TAX REVENUE NOTES THEY CANNOT BE SOLD FOR 30 YEARS, BUT THEY CAN BE SOLD FOR PROJECTS LIKE THE ONE THAT WE'RE TALKING ABOUT HERE AND WE'VE WORKED WITH BOND COUNCIL AND HOW THIS COULD WORK. [02:05:01] AND SO WE'VE ALSO TALKED TO TO A BANK AND SAID, LISTEN, WE'RE GOING TO PRESENT AN OPTION TO THE CITY. THEY MAY OR MAY NOT ACCEPT IT. AND WILL YOU WORK WITH US ON THIS? AND SO FROST BANK, WHO THE CITY HAS A RELATIONSHIP WITH REGARD TO DEBT AND ALSO A BANK THAT HAS RELATIONSHIPS WITH MANY OF THE LOCAL BANKS FROM A CORRESPONDENT STANDPOINT, HAS OFFERED TO WORK WITH US ON THIS. AND SO UNDER THIS SCENARIO, WE WOULD IF YOU COULD GO TO THE FIRST FIRST PAGE, PLEASE. UNDER THIS SCENARIO, WE WOULD ACTUALLY SELL THESE NOTES TODAY. IF YOU APPROVE THIS TO FROST BANK, AND WE WOULD CLOSE ON JANUARY THE 11TH AFTER WE GOT APPROVAL FROM THE ATTORNEY GENERAL PROCESS FOR THE SAME [INAUDILBLE] AMOUNT OF TWENTY THREE MILLION NINE HUNDRED THOUSAND DOLLARS. THIS BANK NOTE WOULD BE CALLABLE ON 30 DAYS NOTICE. SO ESSENTIALLY ANY DAY AFTER 30 DAYS, WE WOULD HAVE TO NOTIFY THE BANK OF THAT CALL AMOUNT, AND THEY'VE OFFERED US A RATE, WHICH IS AN INITIAL RATE. THERE WOULD BE ZERO POINT SIX TO FIVE PERCENT AND THAT RATE WOULD BE GOOD THROUGH JULY 11TH OF TWENTY TWENTY TWO. AND AFTER THAT RESET RATE, THE RESET RATE WOULD GO UP TO TWO PERCENT. THE INITIAL PAYMENT TO THEM WOULD BE JANUARY THE 10TH TWENTY TWENTY THREE, SO IT WOULD BE IN THE NEXT. FISCAL YEAR OR TAX PAYMENT YEAR, YOU WOULD HAVE FIVE PRINCIPAL PAYMENTS BEGINNING IN 2023 AND GOING THROUGH TWENTY TWENTY SEVEN. SO DURING THAT FIVE YEAR PERIOD, WE HAVE OPTIONS WE CAN PREPAY THEM ANY OR ALL OF THIS. UPON 30 DAYS NOTICE, AND I THINK JARED IS TALKING ABOUT HAVING POTENTIALLY SOME MORE CASH AVAILABLE FROM SOME OTHER FUNDS THAT WE COULD HELP REDUCE A REFUNDING AMOUNTS OF THE BANK COULD EITHER ROLL THIS FOR FIVE YEAR PERIODS OR WE COULD AT SOME POINT FIX IT OUT FOR A 30 YEAR PERIOD WHERE IT WOULD LOOK PRETTY MUCH LIKE THE COS LOOK IN TERMS OF THE TAX RATE IMPACT IN THE WATER AND SEWER IMPACT. SO NEXT PAGE, PLEASE. SO THE WAY THIS WOULD WORK IF YOU KEPT IT FOR ITS FULL FIVE YEAR TERM, IT WOULD HAVE A LARGER PAYMENT OF $5 MILLION PER FISCAL YEAR IF YOU CHOSE NOT TO PAY IT DOWN AT ALL OR REFUNDED, OUR ANTICIPATION IS THAT WE WOULD HAVE SOME CASH COME AVAILABLE THAT WE'D BE ABLE TO EITHER PAY THIS DOWN OR REFUND IT WITH ANOTHER BANK NOTE OR A 30 YEAR GO REFUNDING BOND AT A REDUCED PAYMENT OVER TIME. SO WE HAVE A LOT OF FLEXIBILITY WITH THIS OPTION THAT WE DON'T HAVE SELLING COS. WELL, FINALLY, THE NEXT PAGE, IF WE WERE TO SELL THIS AND LEAVE IT OVER THE FIVE YEAR PERIOD, THE WATER AND SEWER REVENUE RATE IMPACT WOULD BE TWO DOLLARS AND SIXTY SEVEN CENTS PER MONTH FOR A USER OF 10000 GALLONS AND A DOLLAR IN 43 FOR THAT RATEPAYER WHO'S PAYING THE MINIMUM RATE. AND SO THAT'S A THREE POINT FOUR, TWO PERCENT RATE INCREASE ROUGHLY IF WE SOLD THESE AND LEFT THEM OUT UNTOUCHED. THE NEXT PAGE IS THE SOURCES AND USES A LITTLE BIT LOWER COST OF ISSUANCE. SORRY. OH, THE TAX RATE. THAT'S RIGHT. COULD YOU GO BACK ONE? I APOLOGIZE FOR THAT. AGAIN, LIKE THE OTHER ONE, WE'D PAY HALF OF THIS FOR MODERN SEWER AND HALF FROM TAXES. AND THEN UNDER THIS SCENARIO, THE TAX RATE INCREASE WOULD BE APPROXIMATELY TWO CENTS FOR THE PERIOD 23 THROUGH 27. SO A TWO CENT TAX RATE INCREASE UNDER THIS OPTION, ASSUMING THAT YOU LEFT IT OUT STANDING IN ITS ENTIRETY. AND PAID FOR IT IN FIVE YEARS, PAY FOR IT IN FIVE YEARS. THAT'S CORRECT. BE COMPLETELY PAID FOR IN FIVE YEARS. AND THEN REFINED AND TO A 30 YEAR RATE AND PAY FOR IT IN 30 YEARS, PAY FOR IN 30 YEARS WITH 30 YEAR CO OR IF YOU WERE TO FINANCE THIS OUT. AND THAT RATE IS ROUGHLY 80 PERCENT LESS THAN THE FIVE YEAR RATE THAT IS CORRECT IN TERMS OF THE RATE INCREASE. YES. TAX RATE INCREASE, I MEAN. CORRECT. THE SEE, THE NEXT PAGE THEN. [02:10:03] THERE YOU GO. SOURCES AND USES, THIS HAS A LITTLE BIT LOWER COST OF ISSUANCE. BUT ESSENTIALLY THE SAME. AMOUNT TO CONSTRUCTION FUND. AND THAT'S ALL I HAVE TO PRESENT, AND I WOULD BE GLAD TO ANSWER ANY QUESTIONS I CAN UNDER ANY OF THOSE EXAMPLES OR ANYTHING ELSE REGARDING THE DEBT SIDE. QUESTIONS FOR STEVE AND COUNCIL. EVERYBODY LOOKS VERY STUDIOUS. WELL, IT'S, YOU KNOW, IT'S COMPLICATED, IT WAS HARD FOR US TO FIGURE OUT WHAT WAS THE BOND COUNCIL AND STAFF, SO IT'S NOT INTUITIVE. YEAH, YEAH. BUT IT DOES LOOK LIKE WE HAVE OPTIONS. YEAH, I THINK SO, I MEAN, YOU KNOW, YOU COULD EITHER CALL BOND ELECTION, YOU DO A 30 YEAR CO OR A FIVE YEAR NOTE. THE NOTE HAS THE MOST OPTIONS FOR PRE-PAY REFUNDS AND OR LEAVING IT THE WAY IT IS. AND YOU SAID CALLABLE AT ANY TIME WITH 30 DAYS NOTICE TO THE BANK. OK. AND I MEAN, I GUESS I'M STATING THE OBVIOUS [INAUDIBLE] THAT YOU GUYS ARE ALWAYS ANALYZING LOOKING AT THE DEBT THAT WE HAVE OUTSTANDING. WHAT ARE OUR BEST OPTIONS? IS THERE IS THERE A WAY TO PIVOT AND PAY LESS? I MEAN, THAT'S WHAT IT'S ALL ABOUT. SO THAT'S PART OF WHAT THAT WOULD TIE INTO IS JUST THE FLEXIBILITY WE WOULD HAVE IN THAT SHORT CALL. THAT'S A TON OF FLEXIBILITY, IS WHAT I'M. YES. AND THAT WAS OUR INTENT IS TO MAKE SURE WE HAD MAXIMUM FLEXIBILITY ON THIS OPTION SINCE IT'S SUCH A SHORT TERM OPTION. SO ON THIS SHORT TERM OPTION. THIS TWO CENT ON THE INTEREST AND SINKING ON OUR TAX RATE, DOES THAT MEAN THAT THAT AUTOMATICALLY IN FIVE YEARS IT ROLLS OFF? NO. IF YOU LEFT IT THE WAY, YES, IF FOR THIS PORTION, YES, IF YOU PAID IT IN FIVE YEARS, YOU DIDN'T USE ANY OTHER CASH TO REDUCE IT. AND YOU JUST LEFT IT IN THE HANDS OF THE BANK IT WOULD ROLL OFF IN FIVE YEARS. THE DEBT SERVICE WOULD ROLL OFF IN FIVE YEARS, RIGHT? THE TAX RATE WOULD BE IT WOULD BE UP TO THE COUNCIL TO REDUCE THE TAX RATE OR ISSUE OTHER DEBT AGAINST THAT CAPACITY. SO I JUST TO BE CLEAR THAT I DIDN'T KNOW IF YOU WERE ASKING WOULD THE WITH THE PAYMENTS BE DONE IN FIVE YEARS? NO ON TAX RATE GO AWAY. I NEEDED THAT CLARIFICATION. THAT WAS THE PART THAT I. OK, SO WHENEVER WE DO SOMETHING LIKE THIS, THE TAX RATE STAYS UNLESS WHOEVER IS SITTING ON COUNCIL FIVE YEARS FROM NOW WILLFULLY REDUCES THAT RATE BACK TO REFLECT THAT. YEAH, AND WE WOULD ALWAYS AT THE STAFF LEVEL, WE WOULD ALWAYS MAKE COUNCIL AWARE. NOW THIS IS DEBT ROLLING OFF. YOU HAVE YOU CAN EITHER ISSUE ADDITIONAL DEBT AGAINST THIS, AGAINST THIS DEBT CAPACITY WITHOUT INCREASING THE TAX RATE FURTHER. OR YOU CAN REDUCE THE TAX RATE BECAUSE THE PURPOSE OF THAT TAX RATE IS NOW GONE. WHAT ABOUT THE WATER SEWER, RATE? YOU CAN DO THE SAME? YOU CAN DO THE SAME WITH THAT. HOWEVER, I WOULD CAVEAT THAT VERY HEAVILY BY SAYING WE HAVE PROGRAMED RATE INCREASES TO PAY FOR SPECIFIC PROJECTS. THERE'S ALWAYS NEW PROJECTS, SO THIS WOULD WHAT THAT WATER RATE AND IT'S INCREDIBLY MINIMAL WATER RATE. BUT WHAT THAT WATER RATE WOULD PROVIDE, THE ABILITY TO DO IS JUST DO SOME OF THOSE PROGRAMED FUTURE PROJECTS WITHOUT AN ADDITIONAL RATE INCREASE TO REDUCE THE RATE AND THEN INCREASE THE RATE RIGHT AWAY, MAYBE EVEN IN THE SAME YEAR MIGHT NOT MIGHT BE COUNTERPRODUCTIVE. SO THAT WOULD BE SOMETHING WE WOULD HAVE TO EVALUATE. YOU DO HAVE THE OPTION, THOUGH, ONCE THAT DEBT HAS GONE TO REDUCE THAT WATER RATE BECAUSE IT IS ALLOCATED TO PAY FOR THAT DEBT SERVICE ASSOCIATED WITH THIS PROJECT. MORE THAN YOU ASKED FOR, I KNOW. NO, IT'S ACTUALLY WHAT I ASK FOR. OK, GOOD. OTHER QUESTIONS. SO DO YOU ALL HAVE A RECOMMENDATION FOR US, I MEAN, THERE'S ESSENTIALLY THREE THREE OPTIONS IN FRONT OF US. MAYOR, IF I COULD, EVERY OPTION THAT YOU'VE LAID OUT STARTS AT TWENTY THREE MILLION. YES. SO TO GO BACK A HALF STEP HERE WE WE STARTED WITH A $4.7 MILLION PURCHASE OF THE HARDWARE BUILDING THROUGH EXCESS REVENUES, EITHER SALES TAX OR PROPERTY TAXES IN OUR GENERAL FUND. WE'VE GOT A $35 MILLION PROPOSAL IN FRONT OF US. I KNOW I HAD ASKED ON THE ART MONEY BACK WHEN IT WAS FIRST BEING DISCUSSED IF ANY OF THAT MONEY COULD BE USED FOR FACILITIES. AND SO WE ARE NOW SAYING THAT WE CAN CAPTURE ELEVEN POINT TWO MILLION OF THAT [02:15:01] THIRTY NINE MILLION, BUT BASICALLY THAT ELEVEN POINT TWO COMES FROM THE FIRST NINETEEN POINT EIGHT. I BELIEVE IN A CALCULATION THAT'S ALLOWED FOR BY THE STATE. AND THAT CAN BE USED FOR FACILITIES BECAUSE, YEAH, JUST MAKE SURE YOU STATE THAT JUST RIGHT, THOUGH, BECAUSE WE'RE NOT SPENDING ARP MONEY ON FACILITIES, IT'S IT'S THE REVENUE RECOVERY MONEY AND IT CAN BE SPENT TO MAKE SURE WE STICK TO ANYTHING THAT COUNCIL WANTS TO SPEND IT ON AND TO MAKE SURE WE SAY IT RIGHT. THOSE WERE REIMBURSABLE CITY SERVICES IS WHAT I REMEMBER READING. AM I SAYING THAT CORRECTLY? IT REVENUE? OK, SO WE'VE TAKEN REVENUE WE DIDN'T GET IN 2020 AT THE FORMULA AWARDED US? YES. AND SO AND AGAIN, THAT FORMULA IS IT'S A NATIONAL ONE THAT HAS BEEN PROVIDED BY THE GOVERNMENT FINANCE OFFICERS ASSOCIATION. SORRY, LONG NAME. BUT WHAT IT DOES IS IT LOOKS AT A CALENDAR YEAR PERIOD AND IT ASSUMES A CERTAIN AMOUNT OF GROWTH YEAR OVER YEAR. AND SO AND JUST BEING FULLY HONEST, THE AMOUNT THAT IT PRESCRIBED, WE NORMALLY DON'T EVEN SEE IN A GOOD YEAR FOR THE CITY OF AMARILLO, BUT WE FOLLOWED EXACTLY WHAT THE FORMULA STATES AND WHAT THAT CALCULATION PRODUCED FOR OUR 2020 CALENDAR YEAR WAS ELEVEN POINT TWO. AND AGAIN, THAT'S AN APPROXIMATE NUMBER. IT WAS A LITTLE, I THINK IT WAS A LITTLE BIT HIGHER THAN ELEVEN POINT TWO. THAT WAS FROM THE CALCULATION THAT WAS ALLOWABLE TO GO REIMBURSE THE CITY FOR REVENUE RECOVERY. SO AGAIN, THE STIPULATIONS IN THE AMERICAN RESCUE PLAN ACT STATED THAT IT WAS REAL CLEAR THAT YOU KNOW NOT TO USE THE MONEY ON FACILITIES, BUT THAT THE REVENUE RECOVERY FUNDS. AND THERE WERE EVEN SOME QUESTIONS ON THOSE FAQS THAT WERE PUBLISHED BY THE TREASURY DEPARTMENT AND PEOPLE WERE ASKING ABOUT, YOU KNOW, INFRASTRUCTURE AND SOME OF THOSE THINGS, AND THEY KEPT CAVEATING IT WITH, WELL, YOU CAN TECHNICALLY DO IT WITHIN THE CONSTRAINTS OF WHAT YOUR REVENUE RECOVERY IS. AND SO THE MONEY IS ACTUALLY BEING CAPTURED FROM THE AMERICAN RESCUE PLAN ACT AS REVENUE RECOVERY. AND THEN IT'S WHATEVER COUNCIL DECIDES TO DO WITH THOSE FUNDS FROM THAT POINT, RIGHT? AND THAT'S AN IMPORTANT THING TO CLARIFY. AT THIS POINT, WE'RE TALKING ABOUT AS THOUGH WE'VE ALREADY DECIDED WHAT TO DO WITH THOSE ELEVEN POINT TWO MILLION DOLLARS BECAUSE EVERY OPTION THAT'S BEEN LAID OUT HAS ALLOCATED THE FULL AMOUNT TO A DEBT REDUCTION ON THE TOTAL COST OF CITY HALL. UNLESS I'M MISSING IT. WELL, THAT'S WHAT THE RECOMMENDATION IS AS FAR AS THE CASH FUNDING. SO ARE WE ARE WE SUPPOSED TO HAVE A CONVERSATION ON THE ELEVEN POINT TWO MILLION AND WHAT ELSE WE COULD DO WITH IT BEFORE WE GET TO THIS POINT OR. I MEAN, I GUESS I FEEL LIKE I'M ASKING THE QUESTIONS THAT I'M GETTING ANSWERS FOR, BUT IF I'M NOT ASKING THE RIGHT QUESTIONS, THERE'S NO THERE'S NO DIVULGING OF INFORMATION. SO I ASKED YOU A QUESTION OF THE OTHER NINETEEN POINT EIGHT MILLION, WILL THAT BE TREATED THE SAME? SO THERE IS THE ABILITY FOR A MUNICIPALITY TO LOOK AT REVENUE RECOVERY AGAIN. NOW WE'VE ALREADY CAPTURED WHAT WE COULD FOR 2020. WE WILL HAVE TO FINISH CALENDAR YEAR 2021 AND RERUN THE FORMULA AND IT WILL DEPEND. SO IF THERE IF WE MEET ADDITIONAL AMOUNTS THROUGH THE FORMULA, THAT IS SOMETHING THAT WE COULD BRING FORWARD TO COUNCIL IN THE SECOND INSTALLMENT OF THE ARPA MONEY AS A RECOMMENDATION TO GO AHEAD AND CAPTURE THAT REVENUE RECOVERY. I WOULDN'T WANT TO SAY WE'D HAVE ANOTHER ELEVEN POINT TWO MILLION. I WOULD CAUTION YOU ON THAT BY ALL MEANS. YEAH, I WOULD WANT TO SAY I SHOULD EXPECT THAT THERE'S MONIES THAT WOULD BE AVAILABLE FOR FACILITIES TREATED THE SAME WAY AS A CAPTURE BACK INTO THE GENERAL FUND COULD BE USED ON PARKS AND REC SOFTBALL FIELDS. LIGHTING COULD BE USED ON MULTIPLE OTHER INFRASTRUCTURE TYPE NEEDS. THERE WILL BE AT THE SAME CALCULATION WILL BE USED ON THE 2022 ALLOCATION OF THE ARPA OF THE RPA MONEY. WE ANTICIPATE IT'S GOING TO BE A SIGNIFICANTLY SMALLER AMOUNT. HOWEVER, STILL IN THE MILLIONS. WE HOPE. WELL, THAT'S MY THAT'S WHAT I'M SO EXPECTING. YOU'VE GOT TO DELIVER ON THAT, BUT I'M JUST KIDDING. NO, BUT WE DO KNOW THAT WE WILL STILL BE ELIGIBLE FOR MONEY. WE DON'T KNOW EXACTLY WHAT IT IS BECAUSE WE DON'T HAVE THE YEAR END, THE END OF THE YEAR INTO THE CALENDAR YEAR. WE'RE NOT EVEN IN THE CALENDAR YEAR NUMBERS FROM 2021 TO PLUG IN TO THE FORMULA. SO THAT IS CORRECT. HELP US COLE. WHERE ARE YOU GOING? WELL, SPECIFICALLY WHERE I'M GOING IS IS LIKE, I HOPE TO CONTRIBUTE AND I'M NOT BEING ASKED TO CONTRIBUTE AT ALL. ON THE ELEVEN POINT TWO MILLION, IT'S BEING ASSUMED THAT WHAT DO YOU MEAN? WELL, IT'S BEING ASSUMED THAT I WOULD BE IN FAVOR OF SPENDING ELEVEN POINT TWO MILLION THE FULL AMOUNT. AND I'M SURE I'M NOT SAYING THAT EXACTLY RIGHT. BUT WHATEVER THAT AMOUNT IS TO GO TOWARDS CITY HALL IN ANY OF THESE THREE [02:20:02] SCENARIOS. SO IF WE TOOK THAT OFF THE TABLE FOR NOW, I WOULD HOPE TO BE ABLE TO CONTRIBUTE IN AND THESE. I'VE GOT A LAUNDRY LIST OF THINGS THAT I THINK WOULD REALLY GO TO SERVE OUR COMMUNITY WITH THAT MONEY IF THAT MONEY'S OPENED UP IN A GENERAL FUND CAPACITY. SO ARE YOU SAYING YOU WOULD LIKE TO HEAR A PROPOSAL FOR DEBT FUNDING ALL OF CITY HALL INSTEAD OF PAYING FOR PART OF IT WITH CASH? I THINK IF WE'RE TAKING THE CASH, EITHER THE EXCESS MONIES THAT ARE REVENUE BECAUSE WE KNOW WE HAVE SOME SEVEN MILLION AS AN APPROXIMATE AMOUNT OF A PROJECTION OF WHAT WE HAVE LEFT OVER AT THIS FISCAL YEAR. PLUS WE HAVE THIS ELEVEN POINT TWO MILLION DOLLARS. WE HAVE A SUBSTANTIAL AMOUNT OF MONEY TO SIT DOWN AND HAVE A CONVERSATION ABOUT WHAT ALL COULD WE DO FOR OUR COMMUNITY WITH THIS MONEY? RIGHT NOW WE'RE SITTING DOWN AND WE'RE SAYING JUST ON THE ELEVEN POINT TWO, NOT TALKING ABOUT THE SEVEN, WE WANT TO PUT THAT MONEY INTO CITY HALL AND WE WANT TO TRY TO REDUCE THE DEBT IMPACT ON RELOCATING CITY HALL. SO WE'RE NOT TALKING ABOUT ANYTHING OTHER THAN AMARILLO HARDWARE, RELOCATING AND SPENDING THE FULL AMOUNT OF CASH ON HAND AS IT PERTAINS TO ART MONIES THAT WE'VE CAPTURED PUTTING IT ALL OVER THERE, THEN WE'RE STILL BURDENING OUR TAXPAYER WITH ADDITIONAL COSTS IN ONE FORM OR THE OTHER. AND LIKE WITH THE CO, I DON'T EVEN KNOW IF THAT'S LEGAL WITH THE LAWSUIT. I DON'T HAVE AN UPDATE ON WHETHER THE LAWSUIT WAS TAKEN CARE OF. THE LAWSUIT'S DISMISSED. THE LAWSUIT WAS DISMISSED. THERE IS NO BARRIER TO DOING A CO. IF YOU ALL CHOSE TO DO A CEO, IT WOULDN'T REDUCE THE. .. THE PURPOSE OF THE USING CASH IS NOT TO REDUCE THE DEBT, BUT TO REDUCE THE TAX RATE IMPACT, BECAUSE THAT WAS ONE OF THE PRIMARY DIRECTION DIRECTIVES FROM COUNCIL. SO WE CAN DO IT HOWEVER YOU WANT. TAKING THE CASH OUT OF THE PROJECT DOES INCREASE THE TAX RATE IMPACT OF THE PROJECT, ALSO ON THE ON THE SEVEN MILLION PROJECTED EXCESS RESERVES AT THE END OF THIS CALENDAR AT THE END OF THIS BUDGET YEAR THAT WE'RE DOING THE AUDIT ON RIGHT NOW AND WE'LL HAVE BY FEBRUARY OR SOMETIME IN FEBRUARY. I WOULD ALSO CAVEAT THAT BY SAYING POTENTIALLY NOT ALL OF IT SHOULD BE CONSIDERED AS ONE TIME MONEY. I THINK THAT WITH THE WAY SALES TAXES ARE PERFORMING, WE CAN LOOK AT SOME OF THAT MONEY AS MONEY THAT MIGHT BE ABLE TO BE RECURRING, WHICH WOULD FREE IT UP. FREE UP IS THE WRONG WORD. WHAT WOULD MAKE IT ALLOWABLE OR RECOMMENDABLE OR NOT? THAT WOULD MAKE IT USABLE AS SOMETHING THAT COULD BE APPLIED TOWARD RECURRING EXPENSES LIKE PERSONNEL. I WOULD WANT TO TRY AND MAKE SURE THAT WE CAN USE THAT TO BETTER ADDRESS THE [INAUDIBLE] CONTRACT FOR THE NEXT BUDGET YEAR, ALSO TO LOOK AT POSSIBLY DOING A MID-YEAR ADJUSTMENT TO TRY AND ADDRESS THE SALARY INCREASE THAT WE DIDN'T DO THIS YEAR THAT WAS PROPOSED IN THE VOTER APPROVAL TAX RATE REDUCTION GOAL WOULD BE TO MAKE SURE THAT WE CAN DO BOTH OF THOSE THINGS WITHOUT TRIGGERING A VOTER APPROVAL TAX RATE ELECTION NEXT YEAR. BECAUSE AT ALL COSTS, WE WANT TO MAKE SURE THAT WE DON'T TRIGGER THAT. SO I KNOW THAT WE DO HAVE SOME CASH OF THAT SEVEN MILLION THAT WOULD NOT BE RECURRING AND WE COULD NOT IN GOOD CONSCIENCE SAY THAT SALES TAXES ARE ALWAYS GOING TO PERFORM AT THIS LEVEL. WE DO EXPECT A A NORMALIZATION OF SALES TAX REVENUES TO ACCOUNT FOR THE REMOVAL OF ALL THE STIMULUS MONEY FROM THE ECONOMY. WE ALSO EXPECT THAT OUR SALES TAX IS GOING TO SETTLE OUT AT A HIGHER RATE THAN IT IS NOW REVENUES. SO WE WILL BE PROJECTING MORE SALES TAX REVENUES NEXT YEAR THAN WE DID THIS YEAR IF TRENDS CONTINUE AS THEY ARE. AND THAT'S A, YOU KNOW, NOT A GUARANTEE, BUT IT DOES NOT LOOK LIKE OUR TREND IS GOING TO TAKE A SHARP DROP BARRING ANYTHING LIKE COVID COMING UP AGAIN. ANYTHING DIFFERENT, YOU KNOW? SO I THINK I MEAN, THE AGENDA ITEM IS ON HERE BECAUSE WE HAD A CONSENSUS FROM OUR LAST MEETING THAT WE WERE MOVING FORWARD WITH AMARILLO HARDWARE. WE FELT LIKE THERE WERE AT LEAST THERE WAS A CONSENSUS ON THE COUNCIL THAT THAT WAS THE BEST ANSWER TO SOLVING THE PROBLEM OF THIS BUILDING. AND SO, YOU KNOW, IT'S FAIR TO ASK SHOULD THE 11 MILLION BE PART OF PAYING FOR IT. BUT THE AGENDA ITEM IS HOW DO WE PAY FOR IT? SO I THINK IT'S NOT THE RIGHT DIRECTION TO GO TO SAY, WELL, WAIT, WE WE'VE GOT TO TALK ABOUT HOW TO SPEND THAT ELEVEN POINT TWO. THE ANSWER IS, ARE WE GOING TO PUT IT IN AS PART OF HOW WE FUND CITY HALL OR NOT? AND THEN SPECIFICS OF HOW IT GETS SPENT, IF THE ANSWER IS OR NOT, IS A CONVERSATION FOR A FUTURE DAY. SO I'M JUST TRYING. THIS IS A BIG DECISION. WE REALLY DO WANT EVERYONE'S INPUT, BUT IF WE MAKE IT MORE BROAD, IT'S NOT GOING [02:25:06] IN THE SPIRIT OF WHAT THIS AGENDA ITEM WAS AND THAT WAS DIRECTION FROM THE COUNCIL LAST TIME WE MET. THAT SAID, WE NEED TO MOVE FORWARD BECAUSE THERE ARE TIME SENSITIVE NEEDS REGARDING REPAIRS AT THIS BUILDING OR FINDING A SOLUTION FOR THIS BUILDING. AND I'M NOT BACKING UP ON THE FACT THAT THE LAST MEETING WE HAD, IT WAS OBVIOUS THAT THE MAIN FOCUS IS TO THE DESIRE TO MOVE TO AMARILLO HARDWARE AND FIGURE OUT HOW TO PAY FOR THAT. I DON'T AGREE WITH THAT PLAN. THAT'S NOT WHAT I WOULD LIKE TO DO. I DON'T THINK THAT IS THE THE TOP LIST ON THE PRIORITY. AND SO IN LOOKING AT ALL OF OUR TOP PRIORITIES, I THINK WE HAVE OTHER THINGS WE NEED TO TEND TO FIRST. AND THAT WOULD BE PART OF THE DISCUSSION THAT I WOULD LOVE TO HAVE WITH THE COUNCIL FOR THE ELEVEN POINT TWO MILLION PLUS, WHATEVER ELSE. YOU KNOW, WE CAN SPEND AND CAPTURE ON THE ON THE OTHER MONEY NOW IN THE WAY OF ASKING OUR CITIZENS AND THE TAXPAYERS HOW THEY WOULD LIKE TO PAY FOR CITY HALL. I THINK YOU'RE 100 PERCENT RIGHT, MAYOR, THAT'S ON THE AGENDA. AND SO, YOU KNOW, THE CO THAT WE'VE WITHDRAWN AND THEN ISSUING ANOTHER CO NOW THAT I KNOW THAT WE DON'T HAVE AN ACTIVE LAWSUIT AND WE DON'T HAVE A PETITION OR ANYTHING THAT WOULD STAND AGAINST IT, AND I THINK THAT COULD BE SOMETHING ON THE TABLE. A GENERAL OBLIGATION BOND IS REALLY WHAT THE PETITION WOULD HAVE DONE ANYWAY. YOU KNOW, IT WOULD HAVE JUST CALLED THE VOTE. SO I DO HAVE A BIG PROBLEM WITH. MAYBE LOOKING AT LIGHTS THAT AREN'T WORKING ON THE PARKS AND OTHER ITEMS THAT WE DON'T ALREADY HAVE FIGURED OUT AND WE DON'T HAVE MONIES ALLOCATED FOR, AND WE JUST SKIP OVER AND DROP THE ELEVEN POINT TWO MILLION IN HERE IN LIKE, HEY, THIS IS THE BEST WAY FOR US TO TO FIGURE OUT, YOU KNOW, THE AMARILLO HARDWARE ISSUE THAT IS JUST ONE SMALL ISSUE. YOU KNOW, AND I STILL HAVE THE QUESTION OF, YOU KNOW, IF THIS BUILDING WAS ACROSS THE STREET AND OUR FOCUS WAS ON A NEW CIVIC CENTER, WOULD THIS BUILDING BE AN ISSUE? SO ARE YOU GOING TO I MEAN, YOU WANT FEEDBACK FROM US ON ALL OF THAT BECAUSE WE HAVE FEEDBACK FOR YOU ON THAT. AND WE'VE WE HAVE TAKEN A SEVEN MONTH PAUSE AND HAVE HAD THAT CONVERSATION QUITE A BIT. I APPRECIATE ALL WITH YOU. BUT BUT IT'S KIND OF BEING PRESENTED LIKE, WE HAVEN'T HAD THOSE CONVERSATIONS WITH YOU IN THE ROOM AND I FEEL LIKE WE HAVE. NO MA'AM. I FEEL LIKE WE HAVE.. ABOUT THE ELEVEN POINT TWO MILLION BEING ABLE TO BE USED. SO BUT WHAT YOU'RE SAYING TODAY IS THAT YOU WOULD LIKE TO PUT A PIN IN THE ELEVEN POINT TWO AND NOT PUT IT TOWARD CITY HALL. YES, MA'AM, FOR SURE. OK, AND SO I THINK I THINK WE CAN ACKNOWLEDGE THAT THAT'S YOUR PERSPECTIVE ON THAT AND BUT IT DOESN'T WE DON'T HAVE TIME TODAY ON THE AGENDA TO GO AND I DON'T THINK THERE. I DON'T THINK LAURA'S PREPARED TO TALK ABOUT ALL THE DIFFERENT WAYS WE WOULD SPEND THAT ELEVEN POINT TWO IF WE DIDN'T SPEND IT ON CITY HALL. THE QUESTION IS RIGHT. DO YOU WANT TO SPEND IT ON CITY HALL OR DO YOU NOT WANT TO SPEND IT ON CITY HALL? I WOULD NOT WANT TO SPEND ANY OF THE OTHER POINTS, THAT'S THAT'S THE FEEDBACK THAT WITH THE THINGS THAT HAVE BEEN PRESENTED HERE TODAY. AND CAN WE HAVE THAT DISCUSSION IF IT STAYS POINTED AND IN THE RIGHT WAY OF THE AGENDA? JARED, DO YOU HAVE A COMMENT ON THAT? YEAH. ON TWO OF THOSE WE COULD ON THE ITEM D. THE GO ISSUANCE THAT WOULDN'T BE IN FRONT OF COUNCIL UNTIL JANUARY ON ITEM C, WE COULD AUTHORIZE OR DIRECT THE ISSUANCE OF NOTICE OF INTENT TO ISSUE CERTIFICATES OF OBLIGATION, AND WE COULD ADJUST THE NUMBERS THAT WOULD BE ON THAT DIRECTION. ON ITEM F, WE DO NOT HAVE THE ABILITY TO MODIFY THAT BECAUSE THAT IS SOMETHING THAT HAS ALREADY GONE IN FRONT OF THE HAS BEEN NEGOTIATED WITH THE LENDER. THE ONLY CAVEAT WOULD BE IF WE DIDN'T SPEND THE ELEVEN POINT TWO, IT WOULD. IT WOULD DOUBLE THE IMPACT TO THE TAX RATE FOR THE PROJECT. AND THE PROJECT ISN'T AN OPTIONAL PROJECT. I KNOW YOU'RE SAYING I'D RATHER DO OTHER THINGS THAN CITY HALL, BUT IT'S NOT REALLY AN OPTIONAL PROJECT. IT'S BEEN DISCUSSED FOR SO LONG BECAUSE IT IS A FAILING BUILDING. IT WILL HAVE A SIGNIFICANT COST TO US IN THE VERY NEAR FUTURE, AND IT'LL BE A HIGHER COST THAN THIS BECAUSE INFLATION, POSSIBLY BECAUSE OF HAVING TO MOVE OUT OF THE BUILDING, BECAUSE OF IF WHAT HAPPENED LAST YEAR HAPPENS AT ANY TIME IN THE NEXT COUPLE TWO OR THREE YEARS, WE'RE GOING TO BE DEALING WITH THAT ANYWAY. BUT IT JUST EXPOSED EXTENDS THAT EXPOSURE. SO IT'S REALLY NOT AN EITHER OR IT'S A. IT'S A CONTEST OF GOT TO HAVES AND WANT TO HAVES. THIS ONE BEING A GOT TO DO TYPE PROJECT UNLESS WE, IT'S REALLY A QUESTION OF OF RISK TOLERANCE AND RISK OF RISK AVERSION, RISK MANAGEMENT. [02:30:01] SO CAN I CAN I REPEAT BACK TO YOU WHAT YOU'RE SAYING, AND LET'S SEE IF WE'RE HEARING EACH OTHER AND PROBABLY THIS SIDE OF THE TABLE WANTS TO JUMP IN. I'M SORRY THAT YOU'RE JUST SEEING THE BACK OF MY HEAD HERE. WHAT I HEAR YOU SAYING IS THAT YOU'RE YOU'RE NOT IN FAVOR OF CITY HALL BEING AT AMARILLO HARDWARE, AND WE'VE HEARD YOU SAY THAT FOR SEVEN MONTHS, NOT IN FAVOR OF ADDRESSING THE REPAIRS. YOU WOULD RATHER INVEST IN THIS BUILDING THAN IN THE NEW AMARILLO HARDWARE BUILDING. YES, MA'AM. OK. AND THEN, YES, GO AHEAD, JARED. THERE'S A LITTLE MORE ON THAT AS WE'VE LOOKED INTO HOW MUCH MONEY WE'VE SPENT ON THIS BUILDING TO MAKE REPAIRS OVER TIME. WE ARE ABOUT $400000 OF EXPENDITURES AWAY FROM HAVING TO COMPLY WITH BUILDING CODE, ADA, FIRE CODE. SO TO DO A COST EFFECT OR TO DO AN INEXPENSIVE BUT YOU KNOW, FUNCTIONAL REPAIR ON THIS BUILDING IS NOT SOMETHING THAT WE COULD DO BECAUSE OF TRIGGERING ALL THAT OTHER STUFF. YOU START GETTING I WON'T SAY EXACTLY HOW MUCH, BUT YOU GET A SUBSTANTIAL PERCENTAGE TOWARDS THE TOTAL COST OF THE PROJECT THAT WE'RE TALKING ABOUT, WHICH THEN BEGS THE CASE OF WHERE'S THE BEST PLACE TO SPEND THE MONEY? I KNOW THAT'S NOT SOMETHING WE TALKED ABOUT, AND IT'S NOT SOMETHING I REALLY BECAME AWARE OF UNTIL THIS MORNING. BUT IT IS INFORMATION THAT YOU ALL NEED TO BE AWARE OF. SO I THINK MY POINT IS WE PAUSED ALL OF THIS SO THAT WE COULD HEAR THAT PERSPECTIVE FROM YOU AND THAT'S BEEN PREVIOUSLY DECIDED. SO WE ALREADY DECIDED THAT. SO NOW WE'RE NOT GOING TO GO BACK TODAY AND TALK ABOUT WHETHER OR NOT WE'RE GOING TO MAKE THAT DECISION BECAUSE AS A COUNCIL, WE'VE ALREADY MADE THAT DECISION. SO WHAT'S BEFORE US TODAY TO DECIDE IS HOW DO WE WANT TO PAY FOR IT? AND THEN ON THAT NOTE, I HEAR YOU SAYING YOU DO NOT WANT TO COMMIT THE CASH THAT WE HAVE THE ELEVEN POINT TWO. YOU WOULD RATHER USE THAT PERHAPS TOWARD OTHER THINGS THAT ARE ALSO A PRIORITY. SO WHAT I HAVEN'T HEARD FROM YOU IS HOW SHOULD WE PAY FOR THE PROJECT THAT WE'VE ALREADY AS A COUNCIL DECIDED WE'RE MOVING FORWARD WITH? SURE. I APPRECIATE THAT. I THINK YOU'RE SAYING IT PRETTY CLEARLY. I THINK THE ONLY THE ONLY DISTINCTION THAT I WOULD MAKE IS IT'S NOT MY ROLE TO TO FEEL THE BURDEN OF. FIGURING OUT WHETHER WE MOVE OUT OF THIS BUILDING OR MOVE INTO THAT ONE, IT'S TRULY THE BURDEN OF THE TAXPAYER AND THE CITIZEN. SO LIKE, I WANT TO DO A GOOD JOB OF REPRESENTING WHAT THEY TELL ME TO DO WITH THEIR MONEY. AND SO IT IS THEIR MONEY, AND THE ELEVEN POINT TWO IS JUST TAKING A HUGE CHUNK OUT OF PLAY AND THEN NOT PUTTING THE FULL COST NECESSARILY IN FRONT OF THEM. SO I'M IN FAVOR OF ALWAYS ASKING OUR CITIZENS WHAT THEY WOULD LIKE TO DO AND IF THEY SAY, MAN, WE'VE GOT TO DO IT, LET'S MOVE TO AMARILLO HARDWARE. AND THEN I DO WANT TO CONTRIBUTE IN, IS THERE A REVENUE BOND AVAILABLE? YOU KNOW, WOULD THAT WOULD THAT BE SMART TO DO SOMETHING LIKE THAT WITH SEWER AND WATER AND NOT PUT EVERYTHING ON THE TAX RATE BECAUSE I OBVIOUSLY WOULDN'T WANT TO PUT IT ON THE TAX RATE, BUT I'M NOT IN FAVOR OF TAKING ELEVEN POINT TWO OFF THE TABLE WITHOUT SO MUCH AS HAVING A DISCUSSION ABOUT IT. OK, THANK YOU. AND I THINK WE ARE ALL IN FAVOR OF MAKING THE BEST CHOICE FOR THE TAXPAYERS INVOLVED. I MEAN, THAT'S A GIVEN. SO, YEAH, SO THANK YOU FOR GIVING INPUT WITH REGARD TO USING THE REVENUE BOND TO PAY FOR IT. JUST FOR CLARIFICATION ON THAT. THE TWO PRESENTATIONS THAT STEPHEN WENT OVER ARE THERE COMBINATION TAX AND REVENUE BONDS? AND SO HALF OF IT WOULD COME FROM PROPERTY TAX AND HALF WOULD COME FROM THE WATER AND SEWER RATES, WHICH I THINK YOU'RE DISCUSSING AS WELL. SO IT'S A COMBINATION ISSUANCE. IT'S NOT FULLY PROPERTY TAX BACK, IT'S BEING FUNDED OUT OF THE TWO REVENUE SOURCES AND THAT WAS ON THE CERTIFICATES OF OBLIGATION AND ON THE TAX NOTE TAX AND REVENUE NOTE. SO LAURA, DOES STAFF HAVE A RECOMMENDATION ON OUT OF THESE OPTIONS WHAT THEY FEEL LIKE MIGHT BE THE BEST APPROACH? YEAH, I THINK THAT GIVEN THE TIME SENSITIVE NATURE OF THE PROJECT AND THE FACT THAT WE HAVE BEEN PUSHING Y'ALL AND PREVIOUS COUNCILS HAVE BEEN PUSHING TO FIND AN ANSWER FOR THIS PROJECT, WE'VE LOOKED AT IT TO DO SIMULTANEOUSLY WITH THE CIVIC CENTER PROJECT. WE'VE LOOKED AT DOING IT ALONE. COST OF THE PROJECT HAS GONE UP OVER TIME. WE DO KNOW THAT WE NARROWLY AVERTED A BIG, A BIG DISASTER LAST YEAR ONLY THROUGH THE EITHER SKILLED OR LUCKY WORK OF JERRY, WHERE WE ABLE TO AVOID THAT LAST YEAR. SO GIVEN THE TIME SENSITIVE NATURE OF THE PROJECT AND THE WAY THAT WE'VE BEEN ABLE [02:35:01] TO REDUCE THE TAX RATE IMPACT, I WOULD RECOMMEND MOVING FORWARD WITH THE ITEM F ISSUING THE TAX NOTE, THEN EVALUATING WHAT RESOURCES ARE AVAILABLE. AND USING THE ELEVEN POINT TWO AS CASH TO REDUCE THE TAX RATE IMPACT, AND THEN YOU CAN BUY THE TIME YOU WOULD BE ABLE TO LOOK AT AT. YOU WOULD BE ABLE TO THEN CONSIDER IN MARCH, APRIL, SOMEWHERE LIKE THAT, DO YOU WANT TO MOVE FORWARD WITH A TWO CENT IMPACT THAT'LL PAY OFF IN FIVE YEARS, WHICH IS ATTRACTIVE FROM A CERTAIN PERSPECTIVE, OR WOULD YOU WANT TO REFUND THAT AND LOOK AT A FOUR TENTHS OF A CENT IMPACT THAT WOULD LAST 30 YEARS? AND YOU COULD ALSO BUY DOWN THE PRINCIPAL ON THAT TAX RATE FUNDED DEBT TO REDUCE THE TAX RATE AT THAT TIME, IF YOU WANTED TO ALLOCATE SOME OF THE ARPA MONEY FROM 2022 OR ANY CASH THAT'S LEFT OVER AT THE END OF THIS FISCAL YEAR. NOW THAT DOES TAKE AWAY FROM THE ABILITY TO DO CAPITAL PROJECTS IN FUTURE YEARS. SO ALWAYS THERE'S A PUSH PULL IN A CAVEAT TO ALL THAT STUFF. AND I DO RECOMMEND, YOU KNOW, MAINTAINING AN ABILITY TO BE ABLE TO DO A SIGNIFICANT NUMBER OF CAPITAL PROJECTS IN 2023. FY 2023. SO THAT WOULD BE, THAT WOULD BE AN ARGUMENT AGAINST USING THAT ADDITIONAL CASH TO PAY DOWN THIS PROJECT EVEN FURTHER THAN WE'RE ALREADY TALKING ABOUT DOING. BUT I WAS REALLY PUTTING TOGETHER THESE RECOMMENDATIONS WITH LAURA AND WITH STEVEN TO USE THE AVAILABLE CASH THAT WE KNEW WE HAD NOW TO ENABLE A TAX RATE IMPACT THAT WOULD BE FAR LESS THAN WHAT WE HAD PREVIOUSLY DISCUSSED WITH THE ALL OF THE PREVIOUS CITY HALL CONVERSATIONS. SO TO PUT IT IN A NUTSHELL, I WOULD RECOMMEND DOING OPTION F. OK, THOUGHTS ON THAT FROM THE COUNCIL? NOW, I WAS ALREADY LOOKING AT OPTION F WHEN WE INITIALLY LOOKED AT OUR OPTIONS. WAS IT BACK IN NOVEMBER, OCTOBER WHENEVER WE INITIALLY LOOKED AT THESE OPTIONS? AND BECAUSE OF THE TIME FRAME AND THE NATURE OF THIS BUILDING AND THE CONTINUED ISSUES THAT WE FACE ON A DAY TO DAY BASIS THAT WE AS A COUNCIL DON'T EVEN KNOW THAT OCCURRING HALF THE TIME UNTIL IT'S BROUGHT TO OUR ATTENTION BY THE CITY MANAGER AND ALSO BY MR. DANFORTH. BUT OPTION F WAS ALREADY MY OPTION AT THAT PARTICULAR TIME. I'VE HAD A SENSE OF URGENCY FROM DAY ONE TO MOVE FORWARD. THANK YOU. I WOULD PROBABLY I WOULD WHOLEHEARTEDLY AGREE WITH FREDA POWELL ON THIS, AND I THINK WHENEVER I LOOK AT THIS, I DON'T THINK IT MAKES ANY DIFFERENCE WHETHER THIS BUILDING SET HERE OR DID SIT ACROSS THE STREET. WE'RE ONE EVENT AWAY. AND IF WE SHUT DOWN THE IF WE HAVE ANOTHER MAJOR PROBLEM AND WE SHUT DOWN THE CITY HALL, I BELIEVE HADN'T. ISN'T THAT THE TERM WE COULD BE SHUT DOWN FOR EVEN UP TO FOUR MONTHS AND WE WOULDN'T HAVE ACCESS TO THE THINGS THAT NEED TO BE DONE TO RUN THE CITY. I THINK THE BUILDING HAS FAR EXCEEDED ITS LIFE EXPECTANCY AND I DON'T SEE US HAVING ANY OTHER CHOICE AND THIS ONE, I LIKE THE IDEA OF THE FACT THAT WE CAN HAVE. WE CAN HAVE THIS LITERALLY PAID OFF IN A FIVE YEAR PERIOD OF TIME. I THINK THAT IS A, I THINK THAT'S A WISE USE OF OUR FUNDS THAT WE GET THIS DONE AND IT'S OVER WITH, AND THEN WE CAN MOVE ON TO THE NEXT LIST OF THINGS THAT REALLY NEED TO BE DONE IN THE CITY. THIS GIVES AN ADDITIONAL, I MEAN, THE BUILDING THAT WOULD BE MOVED INTO THE HARDWARE BUILDING. IT'S A FAR BETTER BUILDING THAN THIS ONE IS. AND I THINK OUR LIFE EXPECTANCY OUT OF THAT BUILDING SHOULD BE AT LEAST ANOTHER 50 YEARS. AND THERE'S AN INCREDIBLE AMOUNT OF GROWTH OPPORTUNITY WITHIN THAT BUILDING FOR CITY SERVICES. AND I THINK IF WE'RE GOING TO CONTINUE ON A TRAJECTORY OF GROWTH THAT'S OBVIOUSLY HAPPENING IN AMARILLO BECAUSE OF THE DIFFERENT PROJECTS THAT AMARILLO ECONOMIC DEVELOPMENT CORPORATION BRINGS TO US LIKE AMAZON AND [INAUDIBLE]. WE'RE GOING TO HAVE MORE PEOPLE NEEDING TO COME TO TOWN AND MOVING TO AMARILLO, AND IT'S GOING TO BE VERY IMPORTANT THAT. THIS IS A CENTRAL PIECE WE HAVE, WE HAVE TO MOVE FORWARD. I LIKE THE OPTION OF GETTING THIS THING DONE IN A SHORT PERIOD OF TIME. ANYMORE, TWO CENTS TO ADD? IN FAVOR OF, I BELIEVE THE MAXIMUM AMOUNT HAS ALREADY BEEN PROPOSED ON THE SEWER [02:40:02] AND WATER REVENUE BOND. IS THAT CORRECT? 12 MILLION ROUGHLY THAT YOU CAN. SO CURRENTLY WE HAVE WE HAVE ABOUT WE HAVE ABOUT $9 MILLION IN ONGOING CASH FUNDED PROJECTS. AND SO IN THESE OPTIONS THAT WE'RE LOOKING FOR, ACTUALLY THE RATE IMPACT THAT WAS TAKEN INTO ACCOUNT DOES TAKE INTO ACCOUNT. THERE IS A SMALL, VERY SMALL DEBT ISSUANCE THAT'S ROLLING OFF THIS NEXT YEAR. SO THAT WOULD EAT AWAY FROM PART OF THE RATE IMPACT. BUT THE RATES WOULD NOT COME INTO PLAY UNTIL THE BUDGET IS SET FOR THE 22 23 FISCAL YEAR THAT YOU ALL WILL BE LOOKING AT IN THE NEXT SEVERAL MONTHS. IT'S NOT REALLY A MAX AS MUCH AS IT IS WHEN YOU WHEN YOU DO A PROJECT THAT HAS MULTIPLE FUNDING SOURCES, YOU HAVE TO ASSESS WHAT IS THE PERCENTAGE OF SERVICE THAT THIS BUILDING PROVIDES TO THE UTILITY. THAT'S THE AMOUNT THAT THEY'RE RESPONSIBLE FOR. YOU COULD OBVIOUSLY CHOOSE TO DO IT ALL ON PROPERTY TAX, ALL WITH CASH, WHICH WOULD RELIEVE THE REQUIREMENT TO USE REVENUE BONDS. BUT THE REVENUE BONDS ARE REALLY JUST PAYING FOR THE PERCENTAGE OF THIS BUILDING OR CITY HALL, THAT OF SERVICE THAT IT PROVIDES TO THE WATER UTILITY. I THINK COMING FULL CIRCLE, I WOULD ACTUALLY BE MORE IN FAVOR OF THE FULL AMOUNT OF THE COST OF CITY HALL RELOCATING TO AMARILLO HARDWARE BEING A GENERAL OBLIGATION BOND PRESENTED TO THE CITIZEN FOR A VOTE FOR THE FULL AMOUNT AND TO BE FULLY BACKED BY PROPERTY TAXES. I'M OPEN TO THE REVENUE BOND, BUT I CAN'T SEE ENOUGH RIGHT NOW TO KNOW IF THAT LIMITS US ON SOME OTHER AREAS THAT THAT WE COULD UTILIZE THAT. AND SO I'D HATE TO SAY THAT THAT WOULD BE SOMETHING THAT WE WOULDN'T LOOK AT. I MEAN, I OBVIOUSLY WOULD LOOK AT IT, BUT I WANT THIS IN FRONT OF THE CITIZENS TO VOTE ON IS MY PRIMARY OBJECTIVE. DID IT DIE? OH, FORGIVE ME. SORRY. SO THAT WOULD BE JUST THAT WOULD LAND ENTIRELY ON THE PROPERTY TAX RATE, A GO BOND, CORRECT? YES, IT COULD WELL STILL GO AHEAD. THANK YOU, STEPHEN. THIS IS WHY YOU COME RIGHT. YOU CAN STILL ALLOCATE THE PORTION THAT THE WATER UTILITY USES INTO THE DEBT SERVICE FUND TO REDUCE THE TAX RATE PART. OK. JANUARY OR EARLY FEBRUARY TIME POINT BECAUSE THAT'S WHEN THE COUNCIL WOULD HAVE THE ABILITY TO CALL A BOND ELECTION FOR THE MAY 22 TIME PERIOD. SO. CONCERNS ABOUT THAT WOULD BE JUST THE DELAY. I MEAN, THE DELAY OF BEING IN THIS BUILDING, THAT'S HANGING BY A THREAD WITH SOME VERY IMPORTANT DEPARTMENTS IN IT, IT, UTILITY BILLING, CITY MANAGEMENT STAFF. SO IT'S JUST TO ME THE UNCERTAINTY OF NOT KNOWING WHEN, WHEN THE PLUMBING IS GOING TO FAIL AGAIN. I MEAN, WE'VE BEEN HERE. WHEN A PLUMBING BREACH INTERRUPTED THE ABILITY TO HAVE COUNCIL IN THIS MEETING, WE WERE ALL SCRAMBLING TO BE ACROSS THE WAY. AND I MEAN, ACCORDING TO JERRY, THAT'S. IT MADE A WATERFALL IN THE ELEVATORS, YES, IT DID, AND THAT'S JUST ONE THING THAT WASN'T EVEN THE TIME WE HAD RAW SEWAGE IN THE BASEMENT WHERE IT SYSTEMS ARE. SO IT'S FAILING. AND I KNOW THAT FOLKS WOULD LIKE TO SPIN IT, THAT, HEY, IT'S ABOUT THE CIVIC CENTER OR IT'S ABOUT SOMETHING ELSE HAVING SOMETHING NEW AND SHINY. I DON'T SEE IT THAT WAY. I SEE IT AS OUR RESPONSIBILITY TO PROVIDE A SAFE PLACE WHERE WE CAN OPERATE THE CITY EVERY DAY. AND THIS BUILDING HAS HAS BIG SYSTEM FAILURES HAPPENING. AND I, KUDOS TO GERRY DANFORTH AND THE FACILITIES TEAM FOR THE THINGS THEY DO TO KEEP IT OPEN. BUT SPENDING ANY MONEY ON THIS BUILDING IS VERY SHORTSIGHTED, AND SO I FEEL THE URGENCY OF THE SITUATION IN THIS BUILDING. F IS ALSO, I THINK, ONE THAT'S APPEALING TO ME BECAUSE OF THE SHORT TIME FRAME AND AND BECAUSE OF THE FLEXIBILITY, STEVE, IN WHAT YOU'RE POINTING OUT THAT WE COULD ADJUST, WE COULD ADJUST BECAUSE THESE WITH A 30 DAY NOTICE, WE CAN PAY THEM OFF AND GO A DIFFERENT ROUTE. SO THAT FLEXIBILITY, COUPLED WITH THE QUICK TO ACTION COMPONENT IS, I THINK, GOING [02:45:06] TO GET MY SUPPORT. ANYTHING TO ADD, ANY QUESTIONS? MORE QUESTIONS FOR LAURA AND STEPHEN MR., CITY MANAGER, ANYTHING YOU THINK WE'VE NOT CONSIDERED OR? OH, SORRY, I FORGOT I HAD. WELL, WE PUT EVERY OPTION WE COULD THINK OF THAT ADDRESS THE PROJECT, THE COUNCIL OF DIRECTORS TO DO AND ALSO REDUCE THE TAX RATE IMPACT AS MUCH AS WE POSSIBLY COULD OR AS MUCH AS WE COULD REASONABLY. YOU KNOW, WE COULD LOOK AT FUNDS THAT ARE GOING TO BE AVAILABLE IN THE FEBRUARY OR SO, ONCE THE AUDIT IS DONE, HOWEVER, LIKE I SAID EARLIER, THERE ARE OTHER THINGS THAT WE'RE GOING TO NEED TO DO WITH THOSE. WE CAN'T PUT ALL OF OUR EGGS IN ANY ONE BASKET BECAUSE WE HAVE TO STILL BE ABLE TO PAY EMPLOYEES. WE HAVE TO STILL BE ABLE TO DO CAPITAL PROJECTS. WE HAVE TO STILL BE ABLE TO TAKE CARE OF FIRE TRUCKS AND [INAUDIBLE] AGREEMENT AND A NUMBER OF CAPITAL PROJECTS THAT, YOU KNOW, WE'RE CONTINUALLY UNDERFUNDED. BUT WE, YOU KNOW, WE CAN'T IGNORE PROJECTS THAT HAVE TO GET DONE TO. SO THAT'S WHY WE PUT TOGETHER THIS BEST LIST OF OPTIONS WE COULD COME UP WITH. WE COULDN'T COME UP WITH A WAY THAT THE PROJECT WOULD NOT IMPACT THE TAX RATE, BUT WE COULD COME UP WITH A WAY WHERE WE MADE A MASSIVE REDUCTION IN THE TAX RATE IMPACT RELATIVE TO WHAT HAD BEEN BEFORE YOU EARLY THIS YEAR. SO THAT'S WHERE WE CAME UP. WE CAN'T THINK OF ANY OTHER OPTIONS THAT WOULD ACCOMPLISH THAT WITHIN THOSE PARAMETERS. SO THAT'S WHY WE GAVE YOU EVERY SINGLE OPTION SO THAT YOU COULD MOVE AS QUICKLY AS YOU WANTED TO MOVE. SORRY. I KNOW WE ARE. WE DON'T DO THAT. WELL, ANYWAY, SO MAYOR, WE'RE ON ITEM 3C. DO WE NEED TO TAKE ACTION ON THIS ITEM? ANY ACTION TO TAKE ON THREE OF THEM TO CHOOSE WHICH ONE? SORRY. THERE REALLY IS NO ACTION TO TAKE ON 3C OTHER THAN TO CHOOSE WHICH, IF ANY OF THE FOLLOWING THREE ITEMS YOU WANT TO TAKE UP. IF YOU CHOOSE TO TAKE UP F, THEN WE WILL NOT ADDRESS ITEMS D AND E. OK. IF YOU CHOSE E, THEN OBVIOUSLY IT WOULD OBVIATE THE OTHER TWO. SO YOU'RE CHOOSING ONE OF THE NEXT THREE ITEMS IN ITEM C, SO REALLY, YOU JUST NEED TO DECIDE WHICH ONE YOU WANT TO ADDRESS, IF AT ALL, IF ANY, AND MOVE TO THAT ONE AND [3.F. CONSIDERATION OF ORDINANCE NO. 7944] TAKE ACTION ON THAT ONE. ALL RIGHT. SO MAYOR, I DO HAVE A MOTION. I MOVE TO ADOPT ORDINANCE NUMBER 7944, AND THAT WOULD BE TO AUTHORIZE THE ISSUANCE OF THE CITY OF AMARILLO, TEXAS COMBINATION TAX AND REVENUE NOTES SERIES 2022 TO RESOLVING OTHER MATTERS, INCIDENT AND RELATED THERETO, INCLUDING THE APPROVAL OF A PAYING AGENT/REGISTER AGREEMENT AND PURCHASE CONTRACT. SECOND. IT'S BEEN MOVED AND SECONDED TO PASS ORDINANCE NUMBER 7944. ANY DISCUSSIONS OR QUESTIONS ABOUT THE MOTION AT THIS TIME? OK, ALL OF THOSE IN FAVOR, PLEASE SAY AYE, RAISE YOUR HAND, ACTUALLY. OK. THREE, FOUR. ALL OF THOSE IN FAVOR, NOT IN FAVOR, PLEASE RAISE YOUR HAND. OK, THAT MOTION PASSES WITH A THREE-ONE VOTE. THE NEXT ITEM ON OUR AGENDA. SO WHAT WE WILL DO THEN IS NO NEED TO DISCUSS D AND E TO YOUR POINT. MR. CITY MANAGER CORRECT. YES MA'AM, CORRECT. [3.G. CONSIDER APPROVAL . CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT BETWEEN THE CITY OF AMARILLO AND AMARILLO LTACH LLC] ITEM THREE G ON THE AGENDA IS H. ALL RIGHT, ON THIS ITEM, WE ARE LOOKING AT A 3-D 380 AGREEMENT TO ADDRESS OR PROVIDE INCENTIVES TO OR I WANT TO LET ANDREW TAKE THIS WHEN THIS IS FOR A MEDICAL FACILITY ON THE WEST SIDE OF TOWN. ANDREW? YES, SIR. SO A LITTLE BIT OF A BACKGROUND. SO THE CHAPTER 380 AGREEMENT IS A METHOD FOR PROPERTY TAX REBATES. THIS IS A REQUEST FOR AN EXISTING VACANT BUILDING LOCATED AT 1540 RESEARCH DRIVE. IT'S A FIFTY ONE THOUSAND SQUARE FOOT FACILITY. IT WAS ORIGINALLY BEING BUILT FOR A SKILLED NURSING FACILITY, BUT WAS NEVER COMPLETED AND DID NOT RECEIVE A CERTIFICATE OF OCCUPANCY, SO IT HAS BEEN SITTING VACANT FOR MANY YEARS. THE PROPOSED PROJECT WOULD CONVERT THE BUILDING TO A LONG TERM ACUTE CARE HOSPITAL. THAT'S THE L TECH LETTERS WITH 54 ALL PRIVATE BEDS, 10 BEING FOR ICU, 30 HIGH ACUITY AND 14 REHAB. IT IS CURRENTLY ON THE TAX ROLLS FOR SIX POINT FOUR MILLION, WITH THE APPLICANT PROPOSING 11 MILLION IN INVESTMENT TO IMPROVE THE BUILDING TO CONVERT IT TO AN L TECH, AS WELL AS COMPLETING THE OVERALL SITE IMPROVEMENTS TO GET TO THE CERTIFICATE OF OCCUPANCY. THE WAY THE PROPERTY TAX REBATE WOULD WORK, IT WOULD CONTINUE TO. THE CITY WOULD CONTINUE TO RECEIVE THE PROPERTY TAXES BASED ON THE 6.4 MILLION, AND THEN ANY GROWTH ABOVE THAT AMOUNT WOULD BE WHAT WOULD BE PROPOSED FOR A REBATE AFTER [02:50:01] THEY PAY THEIR TAXES IN THIS SCENARIO. IF THERE IS NEW PROPERTY GROWTH THAT HITS THE TAX ROLLS OF 10 MILLION, THIS WOULD EQUATE TO THIRTY FIVE THOUSAND FOUR HUNDRED SIXTY SEVEN DOLLARS PER YEAR, OR A LITTLE OVER TWO HUNDRED AND EIGHTY THOUSAND OVER EIGHT YEARS, BASED ON AN ANNUAL REBATE OF 80 PERCENT ANNUALLY FOR A TOTAL OF EIGHTY EIGHT YEARS, WHICH IS IN LINE WITH THE CITY'S ECONOMIC DEVELOPMENT POLICY BASED ON THE LEVEL OF INVESTMENT AS WELL AS THE JOBS AND PAYROLL. HERE'S AN EXAMPLE OR EXHIBIT OF THE SITE. IT'S LOCATED AT OUTLOOK DRIVE AND RESEARCH STREET. YOU COULD SEE A STREET VIEW OF THE PROPERTY DOESN'T HAVE LANDSCAPING THAT SOME OF THE SITE IMPROVEMENTS THAT WERE NEVER COMPLETED BACK WHEN IT WAS UNDER CONSTRUCTION. ALSO INCLUDED. TOUGH TO SEE, BUT YOU CAN SEE THE LAYOUT HERE OF THE DIFFERENT ROOMS. IT SHOWS THE LAYOUT OF WHERE THE ADMINISTRATION OFFICES ARE IN THE DIFFERENT BREAKOUTS OF THE ROOM COUNTS, AS WELL AS THE KITCHEN DINING AREA AND OFFICE SUPPORT AREAS. AS FAR AS THE PROJECT BENEFITS, IT DOES INCLUDE 110 NEW FULL TIME POSITIONS AT A PAYROLL OF SEVEN MILLION, AVERAGE OF SIXTY THREE THOUSAND PER JOB, AS WELL AS 50 NEW PART TIME POSITIONS WITH THE PAYROLL OF TWO MILLION AND $40000 AVERAGE. AND HERE'S LISTED. JUST A NUMBER OF THE DIFFERENT POSITIONS THAT ARE PROPOSED FOR THE FACILITY, INCLUDING PHYSICIANS, ARE INS, PHYSICAL THERAPISTS AND MORE. AND THEN, OF COURSE, THE REALLY THE BIGGER BENEFIT, NOT EVEN THE USE WHICH WILL ADD TO THE MEDICAL DISTRICT. AND IT'S SOMETHING THAT'S NEEDED IN AMARILLO BASED ON THE DEMAND FOR THIS TYPE OF PROJECT. BUT IT WILL BRING BACK AN ACTIVE USE FOR A BUILDING THAT'S SAT VACANT SINCE TWENTY EIGHTEEN WITHOUT SOMEONE USING THE BUILDING. SO WHILE IT HAS HAD SIX MILLION IN PROPERTY TAX VALUE, THAT'S THAT'S LOW FOR THE POTENTIAL OF THAT PROJECT IF IT ACTUALLY HAS AN ACTIVE USE AND MORE MORE INVESTMENT INCLUDED. AND ALSO, BEFORE TAKING QUESTIONS, I WANTED TO BRING UP TODD HARMON WITH THE OWNERSHIP GROUP, HE WANTED TO TALK A LITTLE BIT ABOUT THE TENANT AND THE QUALITY OF TENANT. I'VE ALSO INCLUDED AT YOUR DYAS. IT'S A PACKET THAT LOOKS LIKE THIS WE SHOULD ALL HAVE ABOUT KPC PROMISE, WHICH IS THE TENANT FOR THE FACILITY, BUT I'LL LET TODD SPEAK ON THAT. THANK YOU. THANKS, SANDRA. MAYOR, CITY COUNCIL CITY MANAGER, I STILL DO ADDRESS LIKE WE USED TO. KNOW YOU DON'T HAVE TO. YOU STATE THAT YOU LIVE IN THE CITY. THAT'S MAINLY THE THING IS, ARE YOU A VOTER OR NOT? A VOTER? DEFINITELY A VOTER. GOOD. SO I WANT TO JUST QUICKLY KIND OF GO OVER THE UTILIZATION OF THE SPACE AND WHY WE'RE HAVING TO SPEND SO MUCH MORE MONEY ON WHAT WAS ALMOST TO FINISH BUILDING IN 2018. THE ORIGINAL DEVELOPER WAS TRYING TO DEVELOP THIS FACILITY AS A REHAB FACILITY. IN FACT, IT'S CALLED RAPID RECOVERY CENTER. THAT COMPANY, I GUESS YOU'D SAY, OVEREXTENDED THEIR CAPITAL MEANS ON 20 DIFFERENT PROJECTS LIKE THIS ACROSS THE UNITED STATES. THIS PROPERTY FELL INTO RECEIVERSHIP AFTER NEARLY BEING COMPLETED. THE UTILIZATION OF THE SPACE WILL NOW BE COMPLETELY DIFFERENT IN THAT WE'RE GOING TO BE TRYING TO EXPAND THE CONTINUUM OF CARE THAT'S AVAILABLE HERE IN THE CITY OF AMARILLO AS AN LTAC. AND WHAT I MEAN BY THAT IS THIS FACILITY WOULD HAVE BEEN, I GUESS YOU'D SAY, HAND IN GLOVE NECESSARY FOR COVID USES. THE ICU, THE ENTIRE BUILDING WILL HAVE ALL MED GAS AND OXYGEN THROUGHOUT THE ICU ROOMS WILL HAVE ALL BASICALLY ISOLATION CAPABILITY FOR THE VENTILATION OF THE AIR AND FRESH AIR SUPPLY REHAB FACILITIES AFTER PEOPLE HAVE WENT THROUGH THE LTAC RECOVERY PERIOD SO THEY CAN GAIN FUNCTION OF LIMBS AND OCCUPATIONAL THERAPY. KPC PROMISE IS A SUBDIVISION OF KPC HEALTH. KPC HEALTH IS HEADQUARTERED OUT OF TEMECULA, CALIFORNIA, AND OPERATE SEVERAL FULL SERVICE HOSPITALS IN THE SOUTHERN CALIFORNIA AREA. KPC PROMISED SPECIFICALLY AS A SUBDIVISION THAT RUNS ONLY LTAC'S THROUGHOUT THE SOUTHERN UNITED STATES. THIS WILL BE THE 10TH PROPERTY ONLINE. WE ARE ALSO CONTRACTED TO DO A FACILITY WITH THEM IN TEMPLE, TEXAS. WE'VE HAD A LOT OF ENERGY AND EXCITEMENT FROM THE HOSPITALS COMMUNITY AND FROM ALL THREE MEDICAL SYSTEMS HERE IN TOWN TO BE ABLE TO UTILIZE THIS AND MAKE THEIR OPERATIONS AT THE HOSPITALS MUCH MORE EFFICIENT. WELCOME FOR ANY QUESTIONS. NEW QUESTIONS FOR MR. HARMON, COUNSEL. [02:55:01] THANK YOU, TODD. THANK YOU. ANY QUESTIONS FOR ANDREW ABOUT THE AGREEMENT OR HOW 380S WORK, I THINK THIS MIGHT BE THE FIRST ONE, IS THIS THE FIRST ONE WE'VE DONE SINCE YOU'VE BEEN ON COUNCIL CALL? OK. OK, IF THERE ARE NO QUESTIONS, DO WE HAVE A MOTION WITH REGARD TO ITEM 3G? YES, MAYOR, WE DO. I MOVED TO APPROVE THE CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT BETWEEN THE CITY OF AMARILLO AND AMARILLO LTAC LLC FOR THE REHABILITATION OF AN EXISTING BUILDING LOCATED AT 1540 RESEARCH DRIVE TO BE UTILIZED AS A LONG TERM ACUTE CARE HOSPITAL. IT'S BEEN MOVED BY MAYOR PRO TEM POWELL AND SECONDED BY COUNCIL MEMBER SAUER TO APPROVE ITEM 3G AS A CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT. ANY DISCUSSIONS OR QUESTIONS ABOUT THIS ITEM? BUT I THINK YOU SAID IT, ANDREW, BUT I THOUGHT IT WAS VERY RELEVANT THAT THIS PROPERTY'S BEEN VACANT FOR A NUMBER OF YEARS. SO AND IT'S A VERY UNIQUE PROPERTY. YES, IT CAN ONLY BE A CERTAIN NUMBER OF USES, SO THIS ALLOWS IT TO BE USED IN A SIMILAR FASHION AS IT WAS DEVELOPED FOR, BUT SOME MINOR IMPROVEMENTS TO GET TO THE ACUTE CARE HOSPITAL LEVEL. YEAH, I THINK THAT'S IMPORTANT TO NOTE. NOTHING ELSE. OK. ALL THOSE IN FAVOR OF THE MOTION, PLEASE SAY AYE. AYE. ANYONE OPPOSED, THAT PASSES WITH THE 4-0 VOTE. [3.H. PUBLIC HEARING AND CONSIDERATION OF ORDINANCE NO. 7945] ITEM 3H IS A PUBLIC HEARING IN CONSIDERATION OF ORDINANCE NUMBER SEVENTY NINE POINT FORTY FIVE. MR. CITY MANAGER. ALL RIGHT, MAYOR, WE'VE GOT KEVIN CARTER, PRESIDENT CEO OF AMARILLO ECONOMIC DEVELOPMENT CORPORATION, TO PRESENT THE ITEM. THIS A REINVESTMENT ZONE TO FACILITATE FUTURE ECONOMIC DEVELOPMENT. KEVIN. MAYOR, COUNCIL, THANK YOU. THIS IS THE FIRST STEP IN THE ECONOMIC DEVELOPMENT PROCESS OF ACQUIRING A TAX ABATEMENT FOR A FUTURE COMPANY. AND SO THIS WOULD BE THE CONSIDERATION OF REINVESTMENT ZONE NUMBER 15. IT'S LOCATED. IT'S THIS ZONE IS APPROXIMATELY 77 ACRES IN THE VICINITY OF CENTER PORT BOULEVARD AND FOLSOM ROAD THAT IS IN OUR CENTER PORT BUSINESS PARK OUT EAST, NORTHWEST OF THE AIRPORT AND EAST OF TOWN. DESIGNATING A REINVESTMENT ZONE IS A STEP IN THE PROPERTY TAX ABATEMENT PROCESS UNDER CHAPTER 312 OF THE TEXAS TAX CODE. LOCAL GOVERNMENTS USE TAX ABATEMENT TO ATTRACT NEW INDUSTRY AND COMMERCIAL ENTERPRISES AND TO ENCOURAGE THE RETENTION AND DEVELOPMENT OF EXISTING BUSINESSES. DESIGNATION OF THIS AREA AS A REINVESTMENT ZONE IS REQUIRED BEFORE CITY COUNCIL HAS THE ABILITY TO OFFER A TAX ABATEMENT. THIS IS SEVENTY SEVEN POINT ONE ACRES AGAIN LOCATED AT CENTER PORT BOULEVARD AND FOLSOM ROAD, THIS IS THE FIRST READING, THE SECOND READING IS SCHEDULED FOR JANUARY 11TH OF 2022 AND STAFF IS RECOMMENDING APPROVAL OF THIS DESIGNATION OF REINVESTMENT ZONE NUMBER 15. CERTAINLY ANSWER ANY QUESTIONS. QUESTIONS COUNCIL. YOU MAY BE DEAD. YEAH. THANK YOU. OH, I CUT THE MIC, BUT I DIDN'T CATCH THE MANAGER. THAT ONE DEFINITELY IS GOING TO MAKE THE OUTTAKES ROLL, SO I DON'T I'M NOT SAYING WE DO OR WE DON'T KNOW LIKE WHAT'S GOING THERE. I GUESS THE OTHER STUFF THAT I'VE LOOKED AT, YOU HAD SOMETHING THAT YOU WERE INCENTIVIZING. YOU HAD KIND OF AN UNDERSTANDING OF WHERE YOUR TAX BASE WAS ON SOME OF THESE THINGS AND THEN LIKE WHAT IT WOULD GO TO AND THE INCENTIVE FROM THERE ON THIS, THIS IS A LARGE PLOT OF LAND SEVENTY SEVEN ACRES. WE DON'T KNOW WHAT'S GOING THERE AND WE'RE ALREADY READY TO DO THIS. SO CAN YOU CAN YOU SELL ME ON LIKE WHY, WHY DO THIS NOW BEFORE YOU KNOW WHAT'S COMING AND AND ARE WE GIVING UP ANYTHING? SO THIS IS JUST THE FIRST STEP. SO AT THE NEXT READING ON THAT, WE WILL HAVE THE TAX ABATEMENT. WE WILL COME AND ASK FOR THE ABATEMENT FOR THAT PROJECT. I'M NOT READY TO DISCUSS THAT PROJECT IN PUBLIC YET. WE CERTAINLY HAVE BROUGHT THAT PROJECT TO YOU ALL IN EXECUTIVE SESSION, AND WE WILL BRING THAT AGAIN TODAY TO GIVE YOU INFORMATION ON THAT PROJECT GOING FORWARD. OK. IT IS I CAN SAY IT'S A SIGNIFICANT AMOUNT OF MONEY THAT'S GOING TO BE INVESTED THERE. OK. SO JUST TO SHOW MY IGNORANCE HERE, WE HAVE A NON CONSENT ITEM THAT WILL REQUIRE A VOTE ON THE FIRST READING. [03:00:03] CORRECT? YES, THE FIRST READING IS NON CONSENT. THE SECOND READING IS USUALLY CONSENT. IF IT WAS UNANIMOUS, YES, THAT'S CORRECT. OK. I THINK I'M CAUGHT UP. THANK YOU. OK. ANY OTHER QUESTIONS FOR KEVIN ABOUT THIS ITEM? OK. KEVIN, FINAL COMMENTS. NO, MA'AM. OK, THANK YOU. DO WE HAVE A MOTION WITH REGARD TO ITEM THREE? MAYOR, WE HAVE A PUBLIC HEARING, PUBLIC HEARING. YEAH, ALL OF THOSE ANYONE PRESENT TODAY WHO WISHES TO SPEAK FOR ON OR AGAINST ORDINANCE NUMBER 7945 3H, WILL HAVE THREE MINUTES TO DO SO. IS THERE ANYONE PRESENT WHO WISHES TO SPEAK ON THIS ITEM? SEEING NO ONE, WE'LL CLOSE THE PUBLIC HEARING AND NOW ENTERTAIN A MOTION. OK, THANK YOU, MAYOR. I MOVED TO ADOPT ORDINANCE NUMBER 7945 AND THAT IS TO CONSIDER DESIGNATING CERTAIN AREAS OF THE CITY AS A REINVESTMENT ZONE. NUMBER 15 FOR COMMERCIAL AND INDUSTRIAL TAX ABATEMENT, THE ZONE IS APPROXIMATELY 77 ACRES IN THE VICINITY OF CENTER PORT BOULEVARD AND FOLSOM ROAD. SECOND. IT'S BEEN MOVED BY THE MAYOR PRO TEM AND SECONDED BY COUNCIL MEMBER SAUER TO APPROVE ORDINANCE NUMBER 7945. WE HAVE ANY DISCUSSION OR QUESTION ABOUT THE MOTION? ALL OF THOSE IN FAVOR, PLEASE SAY AYE. AYE. ANYONE OPPOSED THAT PASSES WITH A 4-0 VOTE. [4. EXECUTIVE SESSION] THE LAST FEW THINGS ON OUR AGENDA ARE UNDER THE EXECUTIVE SESSION PORTION OF THE AGENDA. SO AT THIS TIME, I WOULD ASK THE CITY ATTORNEY TO READ OUR DISMISSAL LANGUAGE. YES, MA'AM. PURSUANT TO TEXAS OPEN MEETINGS AT CLOSED SESSION, THE AMARILLO CITY COUNCIL WAS ANNOUNCED ON DECEMBER THE 14TH TWENTY TWENTY ONE AT FOUR POINT FIFTY ONE P.M. UNDER THE FOLLOWING AUTHORITY. SECTION 551.072 DISCUSS THE PURCHASE, EXCHANGE, LEASE, SALE OR VALUE OF REAL PROPERTY. PUBLIC DISCUSSION OF SUCH WOULD NOT BE IN THE BEST INTERESTS OF THE CITY'S BARGAINING POSITION. SECTION 551.087. DISCUSS COMMERCIAL OR FINANCIAL INFORMATION RECEIVED FROM AN EXISTING BUSINESS OR BUSINESS PROSPECT FROM WHICH THE CITY IS NEGOTIATING FOR THE LOCATION OR RETENTION OF A FACILITY OR FOR INCENTIVES THE CITY IS WILLING TO EXTEND OR FINANCIAL INFORMATION SUBMITTED BY THE SAME. THANK YOU, BRIAN. WITH THAT, WE'RE ADJOURNED TO EXECUTIVE SESSION. * This transcript was compiled from uncorrected Closed Captioning.