7.D. Update regarding Amarillo Economic Development Corporation (AEDC) in connection to financial assistance previously provided to the Regional Accelerator & New Growth Engine (RANGE)

[7.D. Update regarding Amarillo Economic Development Corporation (AEDC) in connection to financial assistance previously provided to the Regional Accelerator & New Growth Engine (RANGE)]

SO WE HAVE LLOYD BROWN WHO SPOKE EARLIER, SCOTT BENTLEY FORMER BOARD CHAIR ON THE EDC CURRENTLY SERVING.

WE HAVE MR. CARTER HERE AND SOME OTHER EDC STAFF MEMBERS.

WE HAVE ANDREW HALL, THE CURRENT CHAIR HERE.

IS THIS MINE OR DOES IT NEED TO GO SOMEWHERE ELSE? YES. OKAY. THANK YOU.

MR. STREET, THANK YOU FOR STAYING.

I WOULD LIKE TO TRY TO FACILITATE A CONVERSATION HERE AS MUCH AS POSSIBLE.

A LOT OF THE STRUGGLE, I THINK, IN THIS IS THE LACK OF BEING ABLE TO COMMUNICATE, THE LACK OF ABILITY TO JUST GO AND GET THE DATA AND JUST HAVE IT.

AND THEN MY PERSONAL OPINION IS THAT THIS BODY SITS AS THE AUTHORIZING UNIT AND THAT THIS BODY'S OPINION MATTERS MOST.

AND SO WE DON'T NECESSARILY NEED TO ARGUE OVER WHAT TERM IS UNLAWFUL VERSUS ILLEGAL.

WHAT WAS APPROPRIATE? WHAT WAS INAPPROPRIATE? YOU KNOW, THIS BODY WILL SET THE RULES AND THE REGULATIONS AND THE GUIDELINES FOR THE WAY IN WHICH THAT ECONOMIC DEVELOPMENT ENGINE RUNS.

AND SO IT'S IMPORTANT THAT WE WORK COLLABORATIVELY TOGETHER AND THAT WE LISTEN TO YOU GUYS.

IT'S ALSO VERY IMPORTANT THAT YOU GUYS TAKE DIRECTION AND WORK ALONGSIDE US TO ACCOMPLISH THAT MISSION.

SO IN HOPES OF TRYING TO DO THAT FOR THE GOOD OF OUR COMMUNITY ALL OF THOSE PROJECTS THAT ARE CURRENT, ALL THOSE FUTURE PROJECTS, EVERYTHING WE'VE ACCOMPLISHED

[00:50:10]

AND HAVING GOOD, STRONG ECONOMIC DEVELOPMENT, WHICH WE ARE NOT OPPOSED TO.

SO MR. YOU NEIL GERBER.

I AM GOING TO ASK YOU TO COME UP FIRST, I BELIEVE, SIR.

SO WHAT WE DO HAVE IS WE HAVE AN UPDATE COMING FROM MR. GERBER THAT WILL SHED A LITTLE LIGHT ON THE DOCUMENT THAT WE WILL RELEASE TO THE PUBLIC.

SO I WOULD JUST PREFACE THIS WITH SAYING EVERYTHING THAT WE HAD MR. GERBER GO AND GET IS ALL OF YOUR INFORMATION.

YOU ARE THE BOSS.

YOU ARE THE TAXPAYER.

YOU OWN THE CITY, YOU OWN THIS ENTITY, YOU'RE THE THE SHAREHOLDER.

AND WE ARE GOING TO TAKE HIS INFORMATION.

IT'S BEEN REDACTED JUST FROM NAMES AND CERTAIN INFORMATION THAT HAD TO BE TO PROTECT IDENTITIES AND PRIVACY.

IT WILL COME OUT TO YOU IN ITS FULLNESS FOR YOU TO REVIEW IT.

AND I THINK THAT'S WHAT WE WANT TO SHOW THE PUBLIC TO HELP RESTORE CONFIDENCE THROUGH THIS ISSUE.

SO, MR. GERBER, YOU'RE UP.

GOOD AFTERNOON.

YES. SO, AS REQUESTED BY COUNCIL AND THE MAYOR, WE HAVE COMPLETED THE AUDIT OF EXPENDITURES GREATER THAN $25,000 FOR EDC.

WE ALSO ELECTED TO LOOK AT JOURNAL ENTRIES.

OF COURSE, SOME EXPENDITURES WILL GO THROUGH JOURNAL ENTRIES LIKE WIRE TRANSFERS.

WE DID NOT LOOK AT SALARIES, WAGES, FRINGES, DEPRECIATION OR AMORTIZATION.

SO LOOKING THROUGH ALL THE EXPENDITURES FOR 24, 23 AND 22, WE GOT ABOUT A 90% COVERAGE IN TOTAL OF LOOKING AT THE SUPPORT AND SEEING THE PROCESS.

A COUPLE OF FINDINGS WE HAD OR NOT FINDINGS.

WE RAN INTO IS THAT WE WERE UNABLE TO IDENTIFY POLICIES, PROCEDURES, CONTROLS TO AUDIT AGAINST, WHICH IS A BIG KEY FOR ANY AUDIT THAT WE TAKE ON. WE HAVE TO HAVE A BACKBONE FOR THAT TO BE ABLE TO SAY, OKAY, WELL THIS IS HOW THE PROCESS WORKS.

YES. APPROVAL LEVELS.

THIS IS HOW APPROVALS ARE DONE, THINGS LIKE THAT.

SO WE HAD THAT ISSUE.

OTHER THAN THAT, I CAN GET INTO DETAIL OR IF THERE'S SPECIFIC AREAS YOU WANT TO ASK ME QUESTIONS ON, WE CAN DIVE IN.

ULTIMATELY, WHAT WE DID IS AFTER A REVIEW OF ALL THESE EXPENDITURES AND ADJUSTING, WE CAME TO THE CONCLUSION THAT THE ENTRY IN THE TRANSACTION THAT WAS DONE FOR THE RANGE WAS AN EXCEPTION TO THE NORM.

SO THAT'S THE ONLY ITEM THAT WE COULD IDENTIFY THAT DIDN'T FOLLOW THE PROCESS FOR PAYMENTS AND JOURNAL ENTRIES, WIRE REQUESTS AS WHAT WE SEE FOR EVERYTHING ELSE.

SO WE CAN COMFORTABLY SAY THAT, YOU KNOW, EXCEPTION TO THE RULE IS THAT ONE ITEM.

SO WE'VE PROVIDED YOU GUYS WITH THE DRAFT REPORT BREAKING OUT MORE DETAIL AS TO EXACTLY WHAT WE DID, WHAT WE LOOKED.

WE PROVIDED SOME RECOMMENDATIONS.

THESE RECOMMENDATIONS IS SOMETHING THAT THE THE COUNCIL AND CITY MANAGEMENT AND EDC CAN LOOK AT. YOU GUYS DECIDE WHERE YOU WANT TO GO WITH IT, WHAT YOU WANT TO BRING IN AND APPLY IT TO IT GOING FORWARD.

AND THEN AT THIS POINT, IF YOU HAVE ANY QUESTIONS, WE ALSO SORRY, WE PROVIDED YOU GUYS WITH ALL OUR WORK PAPERS TO SHOW HOW WE GOT OUR DATA, WHAT WE LOOKED AT, AND FOR ALL THOSE ITEMS OVER 25,000.

WE PROVIDED YOU TO SUPPORT ALL THIS.

I BELIEVE AFTER TODAY WE'LL GO PUBLIC FOR ANYBODY TO LOOK AT.

I WILL REQUEST THAT IF YOU HAVE, SAY, SINGLE LINE ITEMS THAT YOU'VE IDENTIFIED AS LOOKING THROUGH, THAT YOU HAVE QUESTIONS ON, ON AN EXPENDITURE THAT WE KIND OF PULL A LIST TOGETHER AND WE CAN COME BACK TO YOU GUYS ON THOSE ITEMS AND GIVE YOU A DETAILED DESCRIPTION FOR INDIVIDUAL TRANSACTIONS.

SO I APPRECIATE THAT YOU, NEIL.

I KNOW YOU'RE TRYING TO KEEP US AT SOMEWHAT OF A HIGH LEVEL.

SO YOU'RE SPECIFICALLY SAYING, NOT NECESSARILY THE POINT IN TIME THAT I WANT TO REFERENCE LINE ITEM 1483.

AND THIS VOUCHER LOOKS TO BE WITH THE SUPPORTING DOCUMENT DOUBLE ENTERED.

LET'S SAY IT'S A JOURNAL ENTRY OR SOMETHING LIKE THAT.

YOU WANT TO GET WITH COUNCIL INDEPENDENTLY ON THOSE SPECIFIC LINE ITEMS. AND WHAT COUNCIL CAN DO IS GET TOGETHER, MAKE YOUR LISTING.

WE CAN GET THE FULL LIST, BECAUSE I SUSPECT THAT WE'LL GET PUBLIC REQUESTS FOR MULTIPLE OF THE ONES THAT YOU'RE GOING TO REQUEST US TO GET ADDITIONAL INFORMATION FOR.

SO I THINK WE SHOULD START AT KIND OF AN OVERALL HIGH LEVEL.

AND THEN I THINK IT IS OKAY TO DRILL DOWN INTO SOME OF THE OTHER REIMBURSEMENTS, SOME OF THE WAYS IN WHICH THE VOUCHERS WERE MADE, THE WAY THAT THE

[00:55:07]

THE EDC FUNCTIONS SO COUNCIL.

BEFORE I JUMP INTO MY QUESTIONS, I'LL ASK IF ANYBODY HAS SOMETHING THEY'D LIKE TO LEAD WITH.

YEAH, I JUST HAVE ONE QUESTION.

YOU KNOW, WHEN YOU SAY THIS ONE TRANSACTION IS DIFFERENT, ABNORMAL.

CAN YOU GO INTO MORE DETAIL OF WHAT MAKES IT THAT WAY? WELL JUST FROM.

WELL, YOU KNOW, JUST REMEMBER, WE WE DON'T HAVE ANY POLICIES, PROCEDURES OR DOCUMENTATION THAT WILL GIVE ME AN INDICATION THAT IT'S AN EXCEPTION.

OKAY. SO THERE'S NO EXCEPTION AGAINST WHICH I CAN REPORT AGAINST.

HOWEVER FROM OUR FROM OUR SIDE, YOU KNOW, THE BUDGET TRANSFER LINE ITEM, YOU KNOW, IT'S NOT RIGHT OR WRONG.

IT'S THE APPEARANCE.

BUT WE DON'T AUDIT AGAINST APPEARANCE.

SO THAT'S WHY I COULDN'T CALL OUT FOR EXCEPTION OR AUDIT FINDING.

SO WHAT I'M SAYING IS IT'S JUST THAT'S THE ONLY IN OUR CONCLUSION IS THAT APPEARS TO BE AN ANOMALY.

OKAY. BECAUSE EVERYTHING ELSE IS THE SAME OVER THE PAST THREE YEARS.

OKAY. OKAY.

YOU KNOW, CAN YOU EXPAND ON THAT? I MEAN, JUST IT'S AN ANOMALY.

HOW? IN THE SIZE, IN THE PROCEDURE.

LIKE WHAT? WHY IS IT AN ANOMALY? YEAH. IN A PREPAID THE SIZE AND HOW IT WAS RECORDED.

BUT AGAIN, I GOT TO STATE THAT IT'S NOT AN EXCEPTION BASED ON WHAT'S IN PLACE.

SURE. THERE ARE NO POLICIES.

THEY FOLLOWED BASICALLY FOLLOWED THE SAME PROCESS.

AND WHY WE SAY IT'S AN ANOMALY? BECAUSE IT WAS BROUGHT TO OUR ATTENTION TO LOOK AT THAT 750.

SO IF, IF WE IF THIS WASN'T AN ISSUE AND WE JUST SAID, LOOK AT THESE BOOKS, POINT OUT ANYTHING THAT STANDS OUT, THIS ONE, YOU SAID, WOULD IT STAND OUT IF YOU HAD NO KNOWLEDGE OF THIS ONE TRANSACTION, WOULD IT STAND OUT TO YOU.

WE WOULDN'T HAVE LISTED IT AS AN EXCEPTION AT ALL BECAUSE IT FOLLOWS THE SAME TRENDS AS OTHERS, BUT THE WORDS YOU JUST USED BEFORE WERE THE EXCEPTION TO THE NORM.

YEAH, IT'S AN ANOMALY DUE TO THE PREPAYMENTS, THE SIZE OF IT, THE JOURNAL ENTRY.

AND THAT'S THE ONLY THING THAT I COULD IDENTIFY THAT'S A LITTLE OUTSTANDING.

STANDING OUT MORE THAN NORMAL TRANSACTIONS FOR THE SIZE.

YEAH, JUST THE SIZE OF IT.

OTHER THAN THAT, EVERYTHING WAS IT WAS JUST LIKE A $50,000 TRANSACTION.

IT WAS JUST EXACTLY 650.

YES. SO THAT STOOD OUT AS WHAT YOU SAY.

IT'S AN EXCEPTION TO THE NORM, MAINLY JUST BECAUSE OF THE SIZE.

YES. OKAY. YES.

ALL RIGHT. THANK YOU.

OTHER QUESTIONS FOR COUNSEL? NOT AT THIS TIME.

OKAY. I'LL JUST.

I'LL ALSO JUST MENTIONED INTERNAL AUDITS.

CURRENTLY WORKING ON TWO ADDITIONAL AUDITS PERTAINING TO THIS.

WE WILL BE LOOKING AT REIMBURSEMENTS AND WE'RE LOOKING AT VENDORS WITH A TOTAL SPEND IS OVER 25,000 PER YEAR.

SO WE KEPT IT OUT OF THIS REPORT SO THAT WE CAN BETTER FOCUS ON THE OTHER TWO.

SO LET ME GO BACK TO THIS REPORT ON A COUPLE OF THINGS.

DID THIS AUDIT IDENTIFY THE FUNDING SOURCE? YES. OKAY.

YES. IN OUR WORK PAPERS, WE WE IDENTIFY WHERE THE FUNDING CAME FROM.

SO IF THERE WAS $100,000 PAYABLE TO X, Y, Z, YOU CHECKED A BOX OF.

YES. THIS WAS BUDGETED.

AND THIS WAS APPROVED.

YES. DID YOU IDENTIFY ANYTHING OTHER THAN THE RANGE PAYMENT FOR THE 750 THAT WAS NOT FUNDED? AND WHAT WAS NOT APPROVED? NO, SIR. OKAY.

AND WHEN I SAY APPROVED, YOU DON'T HAVE A POLICY TO REFLECT THAT THEIR BOARD APPROVED IT IN THE WAY OF A VOTE.

RIGHT. I'M JUST SAYING YOU HAVE A WAY TO LOOK AT IT AS A BUDGETED LINE ITEM IN THEIR OVERALL WORKING BUDGET.

YES, THAT'S WHAT WE DID.

SO FOR EACH ONE, EACH INDIVIDUAL GL ACCOUNT, AND THEN THE RELATED EXPENSES.

THEN WE COULD TIE IT BACK TO A BUDGET LINE ITEM.

OKAY. SO WE DO HAVE SOME QUESTIONS ON SOME OF THOSE REIMBURSEMENT EXPENSES IN THIS DRAFT THAT'S COMING OUT OR IN THIS REPORT THAT'S COMING OUT.

THERE ARE PERSONAL REIMBURSEMENTS TO STAFF.

AND THOSE REIMBURSEMENTS, I HAD TO ASK YOU SOME QUESTIONS.

SO THEY WERE FILLED OUT ON A MONTHLY REPORT AND IT WOULD SAY, LIKE, HERE'S WHAT IT WAS FOR OR WHO IT WAS TO HERE'S THE AMOUNT.

IT HAD A LINE ITEM THAT SAID P CARD.

AND THEN IT HAD A LINE ITEM THAT SAID OTHER.

CAN YOU EXPLAIN WHAT THE P CARD IS? OKAY. JUST TO JUST TO BRING UP AGAIN, WE ARE CURRENTLY WORKING ON AN AUDIT TO ADDRESS ALL THOSE AREAS.

THE DATA IS IN THE DATA FOR THIS AUDIT.

BUT WE LIKE I SAID, WE SEPARATE IT OUT.

BUT TO ANSWER YOUR QUESTION.

SO P CARD LISTINGS.

THAT IS THE CITY CARD THAT'S IN OUR POSSESSION.

[01:00:01]

SO WE GET ISSUED CITY CARDS TO DO TRAVEL PURCHASES.

OUTSIDE OF THAT PERSONAL CARDS.

SO WHEN YOU LOOKED AT THE SUPPORT THAT YOU SAW, WE GOT P CARD AND THEN PERSONAL.

THAT'S WHERE EMPLOYEE UTILIZES THEIR OWN PERSONAL CARD TO PAY FOR WHATEVER IT MIGHT BE SUBSCRIPTIONS, DUES.

SO IT LOOKED IT LOOKED LIKE COMMON PRACTICE FOR EMPLOYEES.

AND REALLY I SAY EMPLOYEES JUST BECAUSE I SAW A FEW OTHER NAMES.

BUT THE MAJORITY OF WHAT I SAW WAS, WAS KEVIN CARTER'S OTHER LINE ITEM.

AND SO LARGE AMOUNTS OF MONEY THAT WERE CHARGED TO PERSONAL CREDIT CARD, NOT OUT OF THE ORDINARY FOR HIM TO REIMBURSE HIMSELF AT THE END OF THE MONTH ON THAT PERSONAL CREDIT CARD.

CORRECT. OKAY.

MY MY CONCERN ON THAT AND MR. CARTER WILL HAVE YOU ADDRESS THIS ONE HERE IN A MINUTE.

BUT MY CONCERN ON THAT IS IF YOU'RE UTILIZING A PERSONAL CREDIT CARD.

WHY? SO YOU HAVE A PURCHASING CARD, A P CARD THAT GOES STRAIGHT THROUGH TO THE COMPANY.

I COULD SEE IF MAYBE YOU WERE STANDING IN A HOTEL, AND THE HOTEL SAID, I'M SORRY, I CAN'T ACCEPT THAT.

I HAVE TO HAVE A PERSONAL CARD ON FILE TO HOLD YOU LIABLE FOR DAMAGES OR WHATEVER.

BUT THEN IF IT'S A PURCHASE TO.

WHAT DID YOU SAY, THE SOD POODLES? TICKETS FOR 6800.

WHY ARE WHY ARE WE NOT WRITING A CHECK THROUGH OUR FISCAL AGENT? WHY ARE WE PAYING A CREDIT CARD FEE TO OUR VENDOR OVER HERE? AND THEN WHY USE A PERSONAL CARD AND HAVE TO REIMBURSE THAT? WHY? WHY NOT? WHY NOT USE THE FISCAL AGENT? I CAN'T ANSWER THAT.

OKAY. SO THESE ARE QUESTIONS, AND THERE'S NO EXISTING POLICIES OR PROCEDURES THAT SAY THAT IT CAN'T BE DONE.

OKAY. I THINK THOSE ARE SOME OF THE QUESTIONS THAT I WOULD LIKE FOR MR. CARTER TO ANSWER HERE IN A MINUTE BEFORE YOU STEP DOWN.

WE MAY HAVE A FEW OTHERS.

SO IN THIS TRANSACTION, YOU SEE THE 750,000 THAT IS WIRE TRANSFERRED TO THE RANGE.

YES, SIR. DID IT GO TO THE AMARILLO GLOBAL FOOD HUB? YES. SO IT DID GO TO THE AMARILLO GLOBAL FOOD HUB 50 WENT IN TOTAL IN 23.

OKAY. FINANCE TEAM DOCUMENTED A 500,000 ABOVE THE LINE PREPAID ITEM.

SO WHAT YOU WILL THEN SEE IN 24 YOU'LL SEE ANOTHER 250 ENTRY.

IT'S NOT ADDITIONAL OVER AND ABOVE THE 750.

IT'S JUST THE MOVEMENT OF THE FUNDS FROM ABOVE THE LINE TO BELOW THE LINE TO REDUCE THAT ASSET.

SO FOR OUR PUBLIC TO HEAR WHEN YOU GET THIS DOCUMENT AND YOU SEE, OH WELL, HERE'S THE $750,000 WIRE TRANSFER.

AND THEN IF YOU LOOK INTO THE FOLLOWING YEAR, SAY 2024.

YOU SEE A $250,000 JOURNAL ENTRY.

THAT JOURNAL ENTRY IS DOCUMENTING THAT MEMBERSHIP FEE.

IT'S NOT AN ADDITIONAL EXPENDITURE.

IT TOOK THAT ORIGINAL EXPENDITURE OF THE 750 AND RECORDED IT WITHIN THE CURRENT YEAR TO RECORD THE MEMBERSHIP FEE TRANSACTION.

CORRECT. OKAY.

AND THERE IS NO SUPPORTING DOCUMENTATION ON THAT ONE.

WELL WE HAVE THE EMAIL REQUEST TO DO THE PAYMENT.

WE HAVE AN INVOICE FROM THE RANGE FOR THE 750.

THE WIRE TRANSFER.

YOU HAVE AN INVOICE FROM THE RANGE.

YES SIR. YOU DO.

YES. AND IT SAYS MEMBERSHIP FEES DO.

$750,000. OKAY.

I DIDN'T SEE THAT. I SAW THE EMAIL BACK AND FORTH BETWEEN BLAIR SNOW, WHO WAS EMPLOYED AT THE TIME FOR THE WIRE TRANSFER APPROVED BY KEVIN CARTER.

AND THEN I DID NOT SEE AN ACTUAL INVOICE.

OKAY, YEAH, I MIGHT HAVE MISSED IT WASN'T PART OF THE EMAIL AND THE BANK TRANSFERS.

I'LL GO DOUBLE CHECK THE SUPPORT, BUT, YEAH, WE HAVE AN INVOICE.

SIGNED INVOICE.

OKAY. YEAH.

AND THEN THERE WAS NO CONTRACT.

THERE WAS NOTHING ELSE LIKE SOME OF THESE OTHER ENTITIES THAT WE PAY MEMBERSHIPS TO ALL THE TIME.

I MEAN, YOU SEE SUPPORTING DOCUMENTATION AND YOU DO SEE AN INVOICE COMING FROM THEM.

I DIDN'T SEE THE INVOICE FROM THE RANGE.

SO IF I'VE MISSED THAT, IF YOU CAN IF YOU CAN GET THAT TO US, I'LL GO DOUBLE CHECK.

YEAH. I SAW COUNCILMAN SCHERLEN CREEPING UP TO HIS MICROPHONE.

YOU WANT TO. YOU HAVE A QUESTION? YEAH, I JUST HAVE A QUESTION.

ON THESE DOCUMENTS YOU WENT THROUGH? YES, SIR. ON A LOT OF THESE BIGGER ONES, IS THERE AN EXPLANATION WHAT IT'S FOR, OR IS THERE ANY NOTATIONS? A LOT OF THAT WILL BE HIGH LEVEL.

SO IF YOU HAVE A JOURNAL ENTRY OR IF YOU LOOK AT THE PAYMENT VOUCHERS, YOU'RE GOING TO SEE A PAYMENT REQUEST COME THROUGH, WHICH IS LIKE A COVER SHEET.

THEN YOU SHOULD HAVE THIS.

OR YOU DO HAVE THE INVOICE AND THAT INVOICE WILL BREAK OUT WHAT WE'RE PAYING FOR.

SO IN OUR PROCESS, WE MADE SURE THAT WE LOOKED AT THE LINE ITEM IN THE GENERAL LEDGER.

SEE WE PAID MADE SURE THAT THE SUPPORT IS THERE, THAT WE'VE GOT A REQUEST THAT THE INVOICE MATCHES THE AMOUNTS, MATCHES THE VENDOR, MATCHES, THAT THE DATE IS WITHIN

[01:05:08]

RANGE. SO AND THEN IN ADDITION WE ALSO LOOK TO SEE OKAY IS THERE ANY KIND OF APPROVAL ON THAT DOCUMENT.

SO WE WILL LOOK AT OKAY THERE'S A SIGNATURE BY MR. CARTER OR ANY ONE OF THE OTHER TEAM OR MULTIPLE WHICH KIND OF INDICATES THAT OKAY THEY WENT THROUGH A APPROVAL PROCESS.

WELL, I NOTICED WHEN I WAS GOING THROUGH THE DOCUMENT YOU SHARED WITH US THAT I NOTICED ON A LOT OF MEAL TICKETS AND HOTEL VISITS. THERE IS NO DOCUMENTATION OF WHO WENT TO DINNER OR ANYTHING LIKE EDDY SHOWS A BASICALLY MILLS AND A TOTAL.

OKAY. IS THAT CORRECT? WELL, WE IF THE AMOUNTS WERE RELATED TO CREDIT CARDS AND IT WAS UNDER 25, WE HAVE NOT LOOKED AT THAT AT THIS TIME.

SO WE'VE ONLY LOOKED AT ANYTHING OVER 25,000.

OKAY. NOW WHEN WE LOOK AT THE REIMBURSEMENTS.

YES. AND THINGS LIKE THAT WILL BE DIGGING IN A LITTLE DEEPER.

BUT, YOU KNOW, I THINK THAT'S WHAT I WAS LOOKING AT WAS THE REIMBURSEMENT AREA.

YEAH. AND WE ESPECIALLY KEPT IT OUT OF THIS AUDIT.

SO WE DON'T GET ALL THIS STUFF INTERMINGLED.

SO WE ELECTED TO DO THREE DIFFERENT AUDITS.

SO WE DID YOUR 25,000 REQUEST.

AND NOW WE'RE LOOKING AT VENDORS AND WE'LL BE LOOKING AT REIMBURSEMENTS.

SO IN A IN A COUPLE OF WEEKS YOU SHOULD HAVE A REPORT ON THE REST.

OKAY. THAT'S WHAT THAT'S WHAT I WAS WONDERING.

ANOTHER THING WOULD YOU RECOMMEND IN YOUR POSITION TO HAVE BETTER DOCUMENTATION, FOR INSTANCE, ON REIMBURSEMENTS AND THINGS LIKE THAT.

FROM MY REVIEWS, THE SUPPORT THAT'S THERE IS PRETTY SOLID.

THERE'S A LOT OF DOCUMENTATION.

AS WE STARTED LOOKING AT REIMBURSEMENTS, IF YOU LOOK AT THAT, I MEAN, YOU CAN LOOK AT EVERYTHING LISTED AND THERE IS SUPPORT FOR EVERYTHING BEHIND IT.

SO I DON'T THINK IT'S A LACK OF SUPPORT ISSUE.

OKAY. I MEAN, I THINK AS I MENTIONED IN MY REPORT, I MADE SOME RECOMMENDATIONS AS TO APPROVAL LEVELS, CREATING POLICIES, CREATING PROCEDURES THAT WOULD, YOU KNOW, JUST FIX THE PROCESS.

THANK YOU. OKAY.

A COUPLE QUESTIONS.

SO SO THIS 750,000 WAS DONE AT A PREPAY.

THAT IS YOU'RE ACTUALLY PAYING THE MONEY AT ONE TIME.

BUT THEN YOU'RE RECOGNIZING THE EXPENSE AND SUBSEQUENT YEARS CORRELATED TO THE BUDGET.

IS THAT IS THAT COMMON WITH THE CITY OR WITH ADC DOING PREPAIDS LIKE THAT? COMMON. THIS IS THE FIRST TIME I'VE SEEN IT, BUT OF COURSE I'VE ONLY BEEN HERE TWO YEARS AND IT'S ONE OF MY FIRST MAJOR AUDIT AUDITS LIKE THIS.

BUT YES, IT HAPPENS.

WE WILL PAY SOMETHING IN ADVANCE FOR, SAY, THREE YEARS AND STUFF AND RECORD THAT PREPAID ON THE BOOK AND THEN ON THE CREDIT CARD.

WHAT IS THE CITY'S POLICY ON CREDIT CARD USE? P CARD USAGE VERSUS PERSONAL CARD USAGE? WELL, CITY EMPLOYEES ARE NOT ALLOWED TO USE PERSONAL CARDS UNLESS IT'S A CASE OF EMERGENCY.

AND THEN THEY CAN GET A REIMBURSEMENT ON THAT.

AND IS THERE ANY POLICY WITH THE ADC REGARDING.

NO, SIR. OKAY.

WELL THAT'S. NO THERE IS.

WELL SPECIFIC TO YES.

SO NINE POINT FOR EACH EMPLOYEE.

THIS IS EDC'S POLICY.

EACH EMPLOYEE IS ISSUED A PURCHASING CARD.

THIS IS A COMPANY CREDIT CARD TO BE USED FOR COMPANY RELATED EXPENDITURES.

ALL EXPENDITURES MUST BE SUBSTANTIATED, AND THERE MUST BE RECEIPTS AND INVOICES WHICH DOCUMENT THE NATURE AND AMOUNT OF THE EXPENDITURE.

THEN, RIGHT BELOW IT IN 9.5 PERSONAL EXPENDITURES ELIGIBLE FOR REIMBURSEMENT.

IN ORDER FOR ANY PERSONAL EXPENDITURE TO BE CONSIDERED REIMBURSABLE, THE EXPENDITURE MUST BE IN CONNECTION WITH THE PERFORMANCE OF SERVICES AS AN EMPLOYEE.

ALL PERSONAL EXPENDITURES INCURRED DURING THE NORMAL COURSE OF BUSINESS, WHICH REFLECTS THE MISSION OF THE ORGANIZATION, ARE ELIGIBLE FOR REIMBURSEMENT UPON REVIEW AND APPROVAL BY THE PRESIDENT AND CEO.

AND THEN A MONTHLY EXPENDITURE REPORT MUST BE SUBMITTED TO THE PRESIDENT CEO AT THE BEGINNING OF THE FOLLOWING MONTH, AND IT CONCLUDES ON THE PERSONAL EXPENDITURES ARE REIMBURSED SEPARATELY AND MAILED TO THE ADDRESS ON FILE.

SO WHEN AND THEN THE REST OF MY THAT'S THE POLICY THEY HAVE ON THE EDC SIDE.

BUT IT DOESN'T IT DOESN'T LIKE IT'S CLEAR THAT THE CITY POLICY IS USE ONLY THE P CARD.

THERE'S NO WORDING IN THAT THAT SAYS USE ONLY THE P CARD AND THAT THAT YOU CANNOT USE A PERSONAL CARD.

I MEAN, LIKE I SAID, IT JUST STATES IN HERE.

EACH EMPLOYEE IS ISSUED A PURCHASE CARD.

THIS IS A COMPANY CREDIT CARD TO BE USED FOR COMPANY RELATED EXPENDITURES.

AND DOES IT SAY IS IT REQUIRED? THAT MAY BE A POLICY WE WANT TO LOOK AT.

IF DOWN THE ROAD THAT WE FEEL LIKE WE NEED TO APPLY THE SAME POLICY TO THE EDC THAT WE DO TO THE CITY.

WELL, I MEAN, I HAVE SOME QUESTIONS FOR KEVIN HERE IN A LITTLE BIT, BUT I MEAN, IT'S A TO ME, APPROVE ALL EXPENDITURES AND ALL EXPENDITURES.

[01:10:01]

SO ALL EXPENDITURES HAVE BEEN APPROVED.

CORRECT. I MEAN, AS FAR AS CREDIT CARD ACTIVITY OR.

CORRECT. EVERYTHING.

YES. THERE'S APPROVALS.

OKAY. YEAH.

LOADED QUESTION THERE.

GOOD QUESTION. BUT IT'S THE QUESTION OF THE HOUR.

WHAT IS APPROVAL OF ALL EXPENDITURES? AND SO COUNCIL, ANY FURTHER QUESTIONS FOR YOU? NEIL, I THINK IT WOULD BE GOOD TO GIVE MR. CARTER AN OPPORTUNITY TO SPEAK TO THE CREDIT CARD ISSUE.

I HAVE NOTHING FOR YOU, NEIL.

THANK YOU, MR. GERBER. APPRECIATE YOU.

THANK YOU. MR. CARTER, THANK YOU FOR JOINING US HERE TODAY.

DO YOU MIND TO ADDRESS THE THE USE OF OF A PERSONAL CREDIT CARD AND YOUR P CARD? MAYBE THE WHY BEHIND IT AS FAR AS, LIKE, WHY YOU USE YOUR PERSONAL CARD? YEAH, ABSOLUTELY. I THINK I THINK THE THE NATURE OF THE REASON WHY WE WENT, YOU CAN SEE PROBABLY, I MEAN, IF YOU LOOK, 4 OR 5 YEARS AGO, WE USED THE P CARD AND THEN WE STARTED HAVING PROBLEMS. LIKE WHAT MR. SHERLUND I THINK TALKED ABOUT MAYBE WITH THE HOTEL WHERE IT WOULDN'T REJECT THE CARD.

AND IT WAS GETTING FRUSTRATING.

SO WE WENT TO THE PERSONAL CARD.

IT WAS ALLOWED UNDER OUR POLICY.

IT DOESN'T SAY THAT WE'RE REQUIRED TO USE PERSONAL CARD.

I THINK THAT FIRST HAPPENED WHEN MISS STREET WAS OUR CHAIR, AND THEN IT'S CONTINUED.

I'VE HAD PERMISSION FROM EACH ONE OF OUR CHAIRS TO USE A PERSONAL CARD.

SINCE THEN, THE DOCUMENTATION IS EXACTLY THE SAME WHETHER YOU USE THE P CARD OR THE PERSONAL CARD, AND I HAVE A COPY OF WHAT THAT LOOKS LIKE.

WHAT YOU'RE GOING TO GET IN THE AUDIT, IF YOU IF I CAN BRING IT UP TO YOU, THAT'LL BE VERY HELPFUL.

I'LL LET AND IT HAS THAT'S A COPY OF MINE.

SO EACH MONTH THERE'S A DETAILED.

I'M SORRY I DIDN'T BRING COPIES.

THAT'S OKAY. WE CAN PASS IT. IT'S A DETAILED.

SO, YOU KNOW, I DON'T EVEN KNOW WHAT THE AMOUNT IS.

COUNCIL MEMBER TIPPS.

WHATEVER THAT AMOUNT IS.

I THINK THAT'S THE ONE FROM AUGUST.

MAYBE 7201, $7,200.

IT'S GOING TO HAVE HOTEL BILLS.

IT'S GOING TO HAVE WHATEVER TRAVEL EXPENSES.

IT IS GOING TO HAVE OUR MARKETING COMPANY THAT WAS THEIR PREFERRED PAYMENT.

AND THAT'S GRIFFIN WINK.

THAT'S PART OF OUR BUDGETED, THE $800,000 WHERE WE PAY FOR WEBSITE CONTENT DEVELOPMENT OR MARKETING.

THAT'S ONE OF THE, YOU KNOW, ONE OF THE THINGS THAT THAT'S A MONTHLY GOING YOU'RE ALL GOING TO ALSO GOING TO SEE THE AT&T BILL.

THEY DON'T ACCEPT CHECKS OR THEY WE'VE HAD PROBLEMS WITH THAT.

AND SO THAT'S ONE OF THE MONTHLY EXPENSES THAT'S ON THERE.

BUT THE BACKUP DETAIL FOR EACH ONE OF THOSE EXPENSES WOULD BE THE SAME, WHETHER IT WAS A P-CARD OR REIMBURSEMENT.

IN THE CASE OF ALL OF OUR STAFF, EXCEPT FOR ME, IS THEY SUBMIT THAT ON A MONTHLY BASIS AFTER THE MONEY IS EXPENDED.

I HAVE TO APPROVE THAT THEIR EXPENSE.

BUT FOR ME TO GET REIMBURSED, I HAVE TO, TO FILL OUT THAT PAPERWORK.

AND THEN FOR ME TO GET, I HAVE TO GO AND TYPICALLY I DON'T I THINK MAYBE ONCE.

ONE EXCEPTION IS IT'S ALWAYS BEEN THE BOARD CHAIR THAT SIGNED OFF ON THAT REIMBURSEMENT BEFORE THAT CHECK IS ISSUED TO ME, AND BEFORE THAT VOUCHER IS FILLED OUT WITH THE CITY, CAN I CAN I INTERJECT SOMETHING REAL QUICK? YES, SIR. CAN YOU DESCRIBE TO ME WHAT YOU MEAN BY APPROVED? WHEN YOU SAY APPROVED, LIKE IS THE CITY COUNCIL APPROVED? IS IT APPROVED BY YOUR BOARD OR ARE YOU THE THE AUTHORIZER OF THOSE.

SO LET'S SAY MR. NELSON TURNS IN HIS $10,000 REIMBURSEMENTS FOR THE MONTH.

SO THOSE ARE APPROVED BY THE BY THE BOARD AND THE COUNCIL THROUGH THE YEAR.

WITH THE BUDGET THAT YOU GUYS APPROVED LAST YEAR, LET'S JUST SAY WE'RE WORKING OFF OF LAST YEAR'S BUDGET THAT YOU APPROVED.

I DON'T KNOW, $3.7 MILLION THAT YOU APPROVED LAST YEAR FOR THE EDC BUDGET.

SO, MR. CARTER, THOSE ARE APPROVED BASED ON THE FACT THAT YOU ARE TAKING THOSE ITEMS AND ALLOCATING THOSE TO THE FUNDS THAT YOU'RE YOU'RE WORKING IN.

SO SO YOU PUT THEM OVER TO PROJECT DEVELOPMENT OR BUSINESS DEVELOPMENT IS PROBABLY GOING TO BE THE MOST FIT MINE.

BUSINESS DEVELOPMENT IS GOING TO BE WHAT MOST OF MINE COME OUT OF.

AND THAT'S 91110.61346.

THAT'S WE HAVE FOUR BUSINESS UNITS THAT WE OPERATE UNDER 91100.

THAT'S OUR OPERATIONS ACCOUNT.

THEN WE HAVE 9110.

THAT'S OUR MARKETING BUDGET.

THEN WE HAVE NINE ONE 200.

THAT'S OUR TPDC.

THOSE ARE PASS THROUGH FUNDS.

AND THEN I THINK IT'S 91220I BELIEVE IS PROJECT SUPPORT.

IS THAT RIGHT, DOUG OR LAURA? I THOUGHT THAT WAS WHAT'S TPDC THEN.

SO FOR BUSINESS UNITS, IT'S GOING TO BE ESTABLISHED.

YOU'RE ONE OF THOSE. AND THEN A LINE ITEM INSIDE OF EACH ONE OF THOSE BUSINESS UNITS.

SO YOU'RE TRACKING THESE.

SO LET'S SAY LIKE TEAM TEXAS AND SOME OF THE OTHER ITEMS THAT ARE ALL MEMBERSHIPS YOU'RE PAYING THOSE YOU'RE TRACKING THOSE.

YOU'RE ALLOCATING THOSE TO THOSE LINE ITEM BUDGETS, MAKING SURE YOU'RE NOT OVER BUDGET.

AND THEN YOU'RE TURNING THAT INTO YOUR BOARD.

[01:15:02]

AND YOUR YOUR BOARD IS HOW DOES THIS EVER GET BACK TO THE PUBLIC? WHERE DOES THIS EVER BECOME ANYTHING THAT THE PUBLIC CAN SEE? I THINK IF THE PUBLIC REQUESTS THAT INFORMATION, CERTAINLY WE WOULD GIVE THAT INFORMATION BECAUSE IT'S LIKE YOU SAID EARLIER, THE PUBLIC OWNS THAT INFORMATION.

BUT TO MAKE SURE THAT, YOU KNOW, WE'RE WITHIN CAPACITY.

WE DO HAVE AN AUDIT EACH YEAR TO MAKE SURE.

AND THEY LOOK AT THEY LOOK AT EVERY ONE OF THOSE REIMBURSEMENTS FOR ME.

I KNOW THAT BECAUSE I'VE HAD QUESTIONS ASKED IN THE PAST.

AND SO I GOT A FEW OTHERS, BUT I DON'T WANT TO GET IN YOUR WAY.

I JUST HAVE ONE DIRECT QUESTION, KEVIN.

SO WHATEVER ON THESE PERSONAL REIMBURSEMENTS, WHEN YOU'RE PAYING WITH A PERSONAL CARD, I MEAN, DO YOU HAVE ANY DIRECT BENEFIT, LIKE POINTS OR MILES OR THINGS LIKE THAT? WE DO. YES, SIR. AND HOW DO YOU DELINEATE THAT BETWEEN BUSINESS AND PERSONAL USE? IF IT'S GOING, I GUESS I DON'T UNDERSTAND THE QUESTION.

SO IF YOU'RE LIKE SAY FOR INSTANCE, ON I'LL JUST PULL UP 2024.

I MEAN, FOR A TEAM TEXAS MEMBERSHIP FOR IT'S LIKE $10,000.

YOU GOT 10,000 POINTS, YOU KNOW, ON A SOUTHWEST AIRLINE CARD OR A CHASE CARD OR SOMETHING SIMILAR TO THAT.

HOW DO YOU DELINEATE THOSE POINTS FROM WHENEVER YOU'RE IN PERSONAL USE VERSUS ON BUSINESS? IT'S BEEN PAST HISTORICAL THAT STAFF GETS TO KEEP THOSE MILES.

OKAY. OKAY.

I WANT TO DRILL DOWN INTO THAT A LITTLE BIT MORE.

BUT DID YOU HAVE SOMETHING, SIR? NO, I WAS JUST GOING TO ASK YOU.

YOU HAD MADE MENTION.

DOES THE ENTIRE STAFF USE PERSONAL CARD MAINLY OR JUST NOT EVERYONE DOES.

IT'S THEIR OPTION. WE'VE MADE THAT THEIR OPTION.

AND SO.

SO I WANT TO GO ON, LIKE, DO YOU HAVE A CASH BACK CARD? I DO NOT, NO, SIR.

OKAY. SO YOU GET NO CASH BACK.

YOUR BENEFIT FROM THE USE OF THAT PERSONAL CREDIT CARD WOULD BE IN MILES.

THAT'S CORRECT.

I MEAN, I'LL TELL YOU WHAT MINE IS.

MINE IS AN AMERICAN AIRLINES CARD.

OKAY. AND THEN YOU CAN USE THOSE MILES AND KEEP THEM FOR YOUR OWN PERSONAL USE.

YOU'RE NOT APPLYING THOSE TO, SAY, SAVINGS TO THE EDC FOR YOUR NEXT TRIP.

NO, SIR. OKAY.

AND IS THAT OKAY? I MEAN, I DON'T GUESS I UNDERSTAND THE QUESTION, OTHER THAN IT'S BEEN HISTORICAL HISTORY THAT WE'VE BEEN ABLE TO USE THOSE MILES PERSONALLY.

OKAY. JUST AS WHEN WE STAY IN A HOTEL, WE GET HOTEL MILES AND THOSE KIND OF THINGS.

WE'VE NOT GIVEN THOSE BACK.

OKAY. THOSE HAVE BEEN USED.

YOU DISCLOSE THAT TO YOUR BOARD AND THEY KNOW.

AND I MEAN, THE ONLY THE ONLY NEW ONES TO FIND THIS OUT WOULD BE US IN, LIKE, KIND OF HOW THIS WORKS, I THINK SO.

DESCRIBE FOR ME THE DIFFERENCE BETWEEN A BUDGET AND AN APPROVED EXPENDITURE, JUST IN YOUR OPINION.

OKAY, SO LET'S TAKE LAST YEAR'S BUDGET THAT WAS APPROVED BY OUR BOARD AND OUR COUNCIL.

IT AUTHORIZES US TO SPEND AS AN ORGANIZATION UP TO THAT BUDGETED AMOUNT FOR THAT PARTICULAR LINE ITEM UP TO THAT TOTAL AMOUNT FOR THE TOTAL BUDGET.

FOR THE TOTAL BUDGET.

SO IF YOUR BUDGET IS 28 MILLION, YOU HAVE A $28 MILLION TOTAL SPEND.

WELL, I MEAN, I GUESS IF THAT WAS THE TOTAL BUDGET, OUR TOTAL BUDGET WAS $3.7 MILLION IN SPENDING LAST YEAR.

SO YOU HAVE $3.7 MILLION WORTH OF DISCRETIONARY EXPENDITURES THAT YOU CAN MAKE BASED ON THE FACT THAT THEY WERE APPROVED IN A BUDGET WHEN IT WAS APPROVED AT COUNCIL.

THAT'S CORRECT. SO IN YOUR OPINION, COUNCIL APPROVED YOUR BUDGET FOR 3.7 MILLION, AND THAT GIVES YOU THE ABILITY TO APPROVE THOSE LINE ITEM EXPENDITURES AS YOU SEE NEEDED, NOT BASED ON THE BUDGET LINE ITEM AMOUNTS.

WE TRY TO STAY WITHIN THAT BUDGET.

THERE IS SOME DISCRETION.

IF YOU GO OVER AND YOU'RE UNDER IN OTHERS, JUST JUST AS EVERY MUNICIPALITY IN THE STATE DOES, AND THE EDC'S DO THEY HAVE THAT BUDGET POWER TO MOVE WITHIN LINE ITEMS, JUST LIKE I SAID, LIKE THE CITY OF AMARILLO HAS.

IT'S THE SAME AUTHORITY THAT WE WE HAVE THE SAME.

SO WE DO THE SAME ACCOUNTING PRINCIPLE.

SO YOU HAVE A BUDGET LINE ITEM FOR THE RANGE.

YOU CHOOSE NOT TO FUND THAT.

EVEN THOUGH IT WAS APPROVED FROM THE COUNCIL AND THIS IS A SCENARIO YOU CHOOSE TO FUND A MEMBERSHIP TO THE KKK.

AND AND YOU DIDN'T ASK FOR ANYONE'S PERMISSION.

NOBODY APPROVED IT. YOU COULD DO THAT CURRENTLY UNDER YOUR POLICY OR UNDER YOUR HISTORIC GUIDANCE.

THAT'S A TOUGH QUESTION TO ASK.

THAT'S AN IRRESPONSIBLE.

IT WOULD BE GROSS REFERENCE TO USE THAT AS A REFERENCE.

I MEAN, I DON'T EVEN KNOW HOW YOU I WANT TO MAKE THE COMPARISON TO TAKING $100,000 BUDGET LINE ITEM FOR THE RANGE, TURNING IT INTO 250 ADVANCING IT UP TO

[01:20:06]

750 AND FUNDING THAT UNDER YOUR DISCRETION.

SO THAT'S OKAY ACCORDING TO YOU.

CORRECT. NO, SIR, BECAUSE I WOULDN'T I MEAN, THAT'S MORALLY THERE'S NO WAY I WOULD DO THAT.

SO. SO YOU DID NOT DO THAT.

THAT'S THAT'S A HARD QUESTION.

SO YOU DID NOT YOU DID NOT CHANGE THE AMOUNT FROM THE $100,000 MEMBERSHIP FEE AT THE RANGE TO 250, AND THEN ADVANCE IT THREE YEARS IN A ROW AND APPROVE THAT THROUGH A WIRE TRANSFER.

I THINK TWO BOARD MEMBERS WOULD TELL YOU THAT THEY GAVE ME THE PERMISSION TO DO THAT.

SO THAT WAS NOT FOR ME.

OKAY. I THINK THAT'S A VERY, A VERY DIRECT QUESTION THAT REQUIRES A DIRECT ANSWER.

SO YOU WERE DIRECTED BY YOUR BOARD MEMBERS TO CARRY OUT THAT BY THE BUDGET COMMITTEE OF THE ADC THAT YEAR? OKAY. AND AND IF IF THEY HADN'T HAVE DIRECTED YOU UNDER CURRENT GUIDANCE AND PRINCIPLES, POLICIES, YOU COULD HAVE DONE IT AS LONG AS YOU WERE UNDER YOUR 3.7 MILLION.

CORRECT. AND THAT'S THE GUIDELINES THAT WE WERE OPERATING UNDER.

YOU KNOW, HISTORICAL THAT'S HOW WE'VE OPERATED THE EDC IS TO HAVE THAT LINE ITEM AUTHORITY TO MOVE WITHIN THE ITEM, AS LONG AS WE STAYED UNDER BUDGET.

OKAY. COUNCILMAN SCHERLEN I SEE YOU GRABBING YOUR MICROPHONE AND YOU CAN DO THAT WITHOUT BOARD APPROVAL, CORRECT? YES. ALL IT TAKES IS TWO.

YOUR CHAIRMAN AND VICE CHAIRMAN CAN DO THAT.

CORRECT? I MEAN, FROM WHAT WE UNDERSTAND MR. CARTER IS, I BELIEVE MR. BENTLEY AND MR. HALL GAVE YOU APPROVAL TO DO THAT.

IS THAT CORRECT? YES, SIR.

SO, IN OTHER WORDS, ALL IT WOULD HAVE TAKEN IS ONE MORE BOARD MEMBER TO MAKE THIS TOTALLY LEGAL.

CORRECT. YEAH.

I CAN'T ANSWER THE LEGAL QUESTION BECAUSE WE HAD THE BUDGET, WE HAD THE HISTORICAL APPROVAL PROCESS THAT WE COULD STAY WITHIN OUR BUDGET.

AND THAT'S WHAT WE DID.

COUNCIL MEMBER. AND THIS IS WHERE WE'RE HAVING A PROBLEM WITH IS THIS HISTORICAL THING.

AND I'M NOT TRYING TO BE ARGUMENTATIVE.

YEAH. NO PROBLEM.

MY MY BIG THING IS I WOULD THINK YOU HAVE THESE CHAIRMAN AND VICE CHAIRMAN.

ALL IT WOULD TAKE IS ONE MORE BOARD MEMBER.

AND WE WOULDN'T BE SITTING HERE TODAY TALKING ABOUT THIS.

I MEAN, TO ME, THAT IS A VERY, VERY LAX COMPANY POLICY.

I MEAN, I DON'T KNOW, A BUSINESS IN THE WORLD THAT WOULD ALLOW THREE QUARTERS OF $1 MILLION TO GO WITHOUT APPROVAL.

I MEAN, NOW YOU HAD APPROVAL AND YOU YOU SAID THAT.

AND I APPRECIATE YOU SAYING THAT, BUT YOU WERE DIRECTED BY.

AND WHO GAVE THESE TWO GENTLEMEN THE DIRECTION TO DO THIS? WHERE DID THAT COME FROM? THEY WERE THEY WERE THE APPOINTED BUDGET COMMITTEE THAT YEAR.

AND SO.

OKAY. BUT I MEAN, WHO CAME TO THEM SAYING WE NEED TO DO THIS? I THINK DURING THE THE CONVERSATION WITH THE, YOU KNOW, SETTING UP THE RANGE AND SETTING UP WITH ALL THE STUDIES THAT WE CONDUCTED, WE KNEW THAT WE WERE GOING TO PAY SOME TYPE OF MEMBERSHIP IN THE RANGE.

I MEAN, WE SET IT UP. WE WANTED IT TO SUCCEED.

AND SO THE DECISION WAS MADE TO PAY THOSE TO GET THEM STARTED.

AND THEN HOPEFULLY IN THE FUTURE, WE WOULDN'T AS AN ORGANIZATION HAVE TO FUND THAT ORGANIZATION.

WE JUST NEEDED TO GET IT OFF THE GROUND.

WE WANTED TO SUCCEED.

WE SPENT, I DON'T KNOW, $350,000 ON A STUDY OVER TWO YEARS.

WE NEEDED THAT, THAT ORGANIZATION TO SUCCEED.

AND SO THAT'S WHY IT WAS DONE.

AND SO, OKAY.

YEAH, I THINK, YOU KNOW, I'M NOT AFRAID TO STAND UP HERE.

I THINK MR. BENTLEY AND MR. HALL WOULD SAY, HEY, WE YOU KNOW, WE NEED TO MAKE IMPROVEMENTS TO OUR POLICY TO KEEP THIS FROM HAPPENING IN THE FUTURE.

I DON'T I DON'T THINK THERE'S ANY DOUBT.

I THINK THEY'VE SAID THAT TO TO YOU, MAYOR, AND TO YOU, COUNCIL MEMBER SIMPSON, IN THAT MEETING, I BELIEVE THEY SAID THAT TO YOU.

AND THAT'S WHY WE IMPLEMENTED THE POLICY LAST WEEK AND OR THIS LAST BOARD MEETING TO MAKE SURE THAT WE'RE NOT HERE IN FRONT OF YOU AGAIN AFTER I SAW YESTERDAY'S INTERVIEW ON TV.

I THINK THERE'S SOME MISUNDERSTANDING ON THE MOTION I MADE AT THE MEETING LAST WEEK.

I GUESS IT WAS IT CAME OUT.

BASICALLY, WE'RE STRANGLING Y'ALL BECAUSE WE'RE NOT GIVING YOU ANY MONEY.

I MADE THE MOTION.

I SAID, IF Y'ALL NEED ANYTHING, COME AND ASK.

Y'ALL HAVEN'T CAME TODAY TO ASK FOR ANYTHING.

YOU'RE TALKING ABOUT A BUDGET ITEM FOR ADVERTISING.

[01:25:03]

ALL YOU GOT TO DO IS SAY WE NEED THIS TO DO ADVERTISING? I ACTUALLY DID COME TODAY WITH THE WITH AN ITEM ON THE AGENDA THAT DID NOT GET PUT ON THERE, AND WAS GIVEN NO REASON AS TO WHY THAT AGENDA WAS TO PUT ON.

I SENT THAT TO THE MAYOR AND TO THE CITY MANAGER TO ADJUST THE MARKETING BUDGET FOR A COUPLE OF GATEWAY SIGNS THAT WE'VE BEEN WORKING ON FOR THE, YOU KNOW, UNFORTUNATELY, WE'VE BEEN WORKING ON FOR A YEAR.

SORRY ABOUT THAT. COUNCIL MEMBER.

TIPPS. I SENT THAT TO THE MAYOR AND THE CITY MANAGER AND GOT NO RESPONSE AS TO WHETHER THAT WAS GOING TO BE ON THE AGENDA.

I JUST WHEN THE AGENDA CAME OUT, IT WAS NOT ON THE AGENDA.

SO WE WE DID COME AND ASK FOR THAT.

COUNCIL MEMBER SCHERLEN.

BUT AS FAR AS MARKETING, NO, WE DID NOT ASK FOR THAT TODAY.

WE'RE NOT AT THAT POINT.

IT'S JUST IF WE GET PAST THIS MONTH, WE WILL HAVE TO COME AND ASK BEFORE WE, YOU KNOW, WITH THE CONSTRAINTS, WE'LL HAVE TO COME AND ASK FOR THAT.

I JUST WANTED THE PUBLIC TO KNOW THAT WE DIDN'T TIE Y'ALL'S YELLS HANDS.

YOU ARE ABLE TO GET MONEY IF YOU ALL NEED MONEY.

YOU'RE ABLE TO SPEND MONEY IF YOU NEED MONEY.

WE'RE JUST ASKING YOU TO COME WITH GET APPROVAL BEFORE WE JUST GIVE YOU $3.7 MILLION TO DEAL WITH WHAT YOU WANT TO.

WELL, THIS IS A CONSTRAINED BUDGET FOR A VERY SHORT PERIOD OF TIME, WITH THE INTENTION OF PASSING A BUDGET THAT HAS A LIST OF LINE ITEM EXPENDITURES THAT CAN BE APPROVED BY COUNCIL.

SO CHAPTER 22 OF THE BUSINESS ORGANIZATION CODE REQUIRES A MAJORITY VOTE OF YOUR BOARD FOR THIS TO BE AUTHORIZED.

SO THE WAY THAT YOU'VE BEEN OPERATING HISTORICALLY DOESN'T IS NOT AS CONSISTENT WITH STATE LAW AS WE WOULD LIKE.

AND I THINK THAT'S WHY WE'RE ASKING THESE HARD QUESTIONS HERE TODAY.

HOW HOW ARE YOU GUYS SINGLE HANDEDLY OR IN SMALL TWO MEETING DISCUSSIONS, TWO, TWO PERSON DISCUSSIONS, CHANGING AMOUNTS AND ADVANCING FUNDS WITHIN AN OVERALL GLOBAL BUDGET THAT DOES HAVE A LINE ITEM.

THE BUDGET THAT YOU PRESENTED DID HAVE A $100,000 EXPENDITURE TO AMARILLO GLOBAL FOOD HUB.

YES, SIR. OKAY, SO YOU DID YOU DID GET THAT AMOUNT APPROVED.

AND THEN DO YOU KNOW WHO OWNS THE THE RANGE? WHO DID YOU SET THAT UP WITH WHEN WHEN IT WAS GIFTED.

THERE WAS NO GIFT.

WE WE WE HELPED DO THE STUDY AND AND AND MISS STREET MAY BE THE ONE THAT CAN EXPLAIN THAT, BUT NO EDC FUNDS WERE EXPENDED TO SET THE THE NONPROFIT UP.

THEY PAID THEIR OWN LEGAL FEES.

I MEAN, OBVIOUSLY PROBABLY OUT OF THE DUES THAT WE WE PAID, BUT WE DID NOT WE DID NOT EXPEND LEGAL FEES SETTING UP THE THE RANGE STRUCTURE. SO THE STUDY, THE STUDY HELPED SUGGEST WAYS TO SET THAT, SET THE CORPORATION UP AND WHAT NEEDED TO BE WITH THE SUBSEQUENT.

BUT IT'S A NONPROFIT, SO NOBODY OWNS THE NOBODY OWNS THE RAIN.

IT'S JUST THE BOARD MEMBERS THAT ARE SO SO IT'S A NONPROFIT AND IT WAS INCENTIVIZED BY THE EDC.

AND SO CAN YOU RECAP THAT INCENTIVE? YOU HAD AN INCENTIVE.

WE PAID DUES. SO IT WAS AN INCENTIVE.

WELL, YOU HAD THE STUDY THAT YOU FUNDED FOR 375,000.

YEAH. I DON'T THINK IT WAS 375.

I THINK THAT WAS WHAT IT WAS GOING TO BE UP TO.

I DON'T HAVE THE LIST OF.

SO LET'S LET'S SAY IT WAS OVER 300,000.

MAYBE IT WAS APPROVED BETWEEN THE TWO STUDIES.

BUT I MEAN, IT WAS OVER ABOUT A, I DON'T KNOW, 19 OR 19 OR 20 MONTH PERIOD WITH THE TWO STUDIES AND I WOULD SAY EVERY BIT OF 350 TO 400,000 THAT AND THAT MAY BE CUTTING IT SHORT.

MR. GARNER WAS PRETTY INTRICATE IN GETTING ALL THAT DONE.

I NOTICED THAT IN THAT THREE YEAR LOOK BACK, I SAW SEVERAL PAYMENTS TO MATT GARNER INDIVIDUALLY WHERE THOSE PAYMENTS MADE AS A CONSULTANT ON ON SETTING UP THIS RANGE.

IN THE BEGINNING, WE I MEAN, WAY BEFORE THE IDEA OF THE RANGE MR. GARNER WAS SET UP AS A CONSULTANT WITH EDC.

PROBABLY GOING BACK TO I'M GOING TO SAY I'M PRETTY SURE IT HAPPENED, RIGHT? I REMEMBER HIM GOING ON A TRIP WITH US TO CALIFORNIA RIGHT BEFORE COVID, SO THAT WOULD HAVE BEEN 2020.

WAY BEFORE THE WE WE INJECTED OR INTERACTED WITH HANNAH.

SO MR. GARNER WAS A LONG TIME CONSULTANT FOR THE EDC.

OKAY. WELL, I APPRECIATE YOU SPEAKING VERY CLEARLY AND DIRECTLY TO THE CREDIT CARD ISSUE. YES, SIR.

THAT, TO ME, IS A LARGER ISSUE, I THINK, WITH LOOKING AT THAT.

SO ESPECIALLY IF IT WAS CASH BACK INCENTIVES OR SOMETHING LIKE THAT.

I DEFINITELY THINK FOR A PRIVATE PERSON TO BENEFIT FROM PUBLIC MONIES CAN BE SOMETHING THAT WE WOULD TAKE VERY SERIOUS.

AND SO WE WILL CHECK THE, THE LEGAL ASPECT OF ALL THAT AND SEE, YOU KNOW, ARE THOSE MILES ANYTHING THAT EVER SHOULD BE

[01:30:05]

GIVEN BACK TO THAT ENTITY IS IS THAT ALREADY ADDRESSED IN STATE LAW? WE DON'T KNOW. SO WE'LL CHECK ON THAT.

I THINK THAT'S AN IMPORTANT THING TO TO CLARIFY MOVING FORWARD.

AND CERTAINLY I MEAN, IF THIS BODY DECIDES THAT OUR BOARD NEEDS TO MAKE THAT A RESTRICTION, THEN WE CERTAINLY WILL COMPLY WITH THAT RESTRICTION.

OKAY. ORGANIZATION.

WE APPRECIATE THAT.

IS THERE ANYTHING ELSE THAT YOU WERE DIRECTED TO DO AS IT PERTAINS TO THE RANGE BY ANYONE ELSE? I MEAN, NOT THAT I CAN THINK OF.

I MEAN, SO YOU WERE WORKING TO ESTABLISH THE RANGE, WORKING ON IT WORKING ALONGSIDE OF YOUR TEAM SUBCOMMITTEE DIRECTED YOU TO FUND IT THROUGH THAT WIRE TRANSFER, BUT YOU WERE NOT PART OF ANY OTHER CONVERSATIONS ON SETTING THE MEMBERSHIP DUES.

WHO WOULD PAY WHAT? NO. THEY HAD LEADERSHIP TEAMS WITHIN THE RANGE.

AND I THINK, LIKE I SAID, MISS STREET CAN TALK TO THAT A BIT MORE.

YOU KNOW, THERE'S A PUBLISHED LIST OF THOSE NAMES THAT WERE ON THOSE LEADERSHIPS.

I CERTAINLY WASN'T PART OF THE MEMBERSHIP LEVEL.

OKAY. THAT'S I WASN'T ON ANY ACTUALLY, I WASN'T ON ANY OF THOSE COMMITTEES.

I JUST WAS A I MEAN, I WAS A BOARD MEMBER.

I MEAN, YOU ALL KNOW THAT.

BUT, I MEAN, JUST LIKE WE'RE BOARD MEMBERS OF ORGANIZATIONS, WE'RE A MEMBER OF THE CHAMBER, AND I'M A BOARD MEMBER.

YOU KNOW, JUST LIKE PORTS TO PLAINS, WE PAY 100 AND SOMETHING THOUSAND DOLLARS.

YOU'RE A BOARD MEMBER ON THAT ORGANIZATION BECAUSE YOU WANT TO HAVE THAT VESTED INTEREST IN THOSE ORGANIZATIONS TO SHAPE THAT POLICY GOING FORWARD, THAT YOU'VE, YOU KNOW, YOU'VE CONTRIBUTED TO. CORRECT.

AND I THINK POINT WELL TAKEN.

I MEAN, THE POINT YOU'RE MAKING IS, IS DIRECTED TO A CONFLICT OF INTEREST WHERE YOU'RE SAYING, YOU KNOW, LOOK, I'M NOT CONFLICTED WITH SITTING ON THE RANGE.

I HAVE A VESTED INTEREST THERE AT THE POINT THAT I'M MAKING IS NOT THE CONFLICT OF INTEREST WITH YOU BEING THE DIRECTOR AND SITTING ON THAT BOARD, THOUGH THAT MAY HAVE SOMETHING TO DO WITH THE POLICIES MOVING FORWARD.

THE POINT I'M MAKING WAS THE PROCUREMENT OF HOW THAT PAYMENT GOT MADE AND WITH NO NOTICE, NO VOTE, AND NOTHING EVER COMING BACK TO COUNCIL AND THE THE ADVANCE. SO LET ME ASK ONE FINAL QUESTION.

THEN I'LL ASK IF COUNCIL HAS ANYTHING ELSE FOR YOU.

AND THEN I WOULD LOVE TO HEAR FROM MRS STREET.

OR IF MR. BENTLEY OR ANYONE HAS SOMETHING TO OFFER TO THE CONVERSATION.

WOULD YOU AGREE WITH ME THAT YOUR BUDGET VERSUS YOUR ACTUALS ARE PRETTY DIFFERENT? NO. OKAY, SO YOU WOULD SAY THAT YOUR BUDGET VERSUS YOUR ACTUALS AT THE END OF THE YEAR ARE REAL SIMILAR.

YOU SCHEDULE A LINE ITEM, YOU BASICALLY KNOW THAT'S HOW MUCH YOU'RE PAYING.

YOU SPEND IT OUT.

YOU DON'T YOU DON'T HAVE A LOT OF DISCREPANCIES.

WE CERTAINLY DIDN'T THIS PAST YEAR.

I THINK WE HAVE IN THE PAST WHEN WE HAD SOME PROJECT SUPPORT MONEY THAT WAS THERE FOR SOME INFRASTRUCTURE IMPROVEMENTS.

YOU KNOW, I THINK WE'VE HAD SOME YEARS WHERE WE'VE GONE GOTTEN PRETTY CLOSE ON OUR MARKETING BUDGET, AND THEN WE'VE HAD SOME YEARS WHERE WE'VE WE'VE NOT SPENT AS MUCH IN MARKETING. YOU KNOW, IT ALL DEPENDS ON, YOU KNOW, HOW THAT FALLS WITHIN THE, THE YEAR.

BUT, YOU KNOW, WE TRY TO WE TRY TO BUDGET THAT WHERE WE WHERE WE'RE FAIRLY CLOSE ON LINE ITEMS. OKAY. ANY OTHER QUESTIONS FOR MR. CARTER? GENTLEMEN? YEAH. KEVIN, I WOULD ASK.

I MEAN, MAYBE ANDREW SCOTT, YOU CAN CHIME IN AS WELL.

SO WHEN WHEN THE ASK WAS MADE FOR $100,000 AND IT WAS TO BOTH BOARDS IS IT UNUSUAL THAT AN ENTITY WOULD COME BACK AND SAY WE'RE CHANGING THE MEMBERSHIP DUES? TWO AND A HALF TIMES.

IS THAT UNUSUAL? YOU KNOW, I THINK, YOU KNOW, I THINK THIS IS WHERE WE'RE AT WITH THE RANGE.

IT IS AN UNUSUAL.

AND I KNOW THE WORD ANOMALY HAS BEEN USED.

I THINK WE KNEW THAT IT WAS.

WE. WE WANTED THIS.

WE SET THIS THING UP TO TAKE ADVANTAGE OF THE WORK THAT, YOU KNOW, HAS DONE WITH THEIR VERO PROGRAM, AND TEXAS TECH WAS DOING WITH THE VET SCHOOL, THE MED SCHOOL AND THE PHARMACY SCHOOL AND WHAT AMARILLO COLLEGE WAS DOING WITH THE INNOVATION OUTPOST.

WE KNEW THIS WAS GOING TO BE UNIQUE.

THE REASON THE $100,000 WAS BUDGETED, IT WAS A PLACEHOLDER.

AND, YOU KNOW, LIKE I SAID, LIKE I TOLD COUNCIL MEMBER, WE PROBABLY COULD HAVE HANDLED THAT A LOT BETTER IN HINDSIGHT, FOR SURE.

BUT, YOU KNOW, WE WERE TRANSPARENT ABOUT SETTING UP THE RANGE THE WHOLE TIME.

I MEAN, WE HAD LAURA CAME AND DID A PRESENTATION AT STATE OF THE ECONOMY ABOUT IT.

I MEAN, IT'S NOT LIKE WE WERE TRYING TO HIDE THE ORGANIZATION.

SURE. SO WE WERE TRYING TO BE TRANSPARENT.

AS FAR AS. THAT'S THE FIRST TIME IT'S HAPPENED SINCE I'VE BEEN HERE IN FIVE AND A HALF YEARS.

I CAN'T SPEAK FOR THE OTHER, YOU KNOW, 28 YEARS.

YEAH. NO, I GET IT. SO IT IS UNUSUAL.

I MEAN, TO GO, LIKE YOU SAID, FOR US.

FOR ME, IT WAS UNUSUAL.

SO YOU WENT FROM MY FIVE YEARS.

IT'S THE FIRST TIME IT'S HAPPENED, RIGHT? SO TWO AND A HALF TIMES AND THEN ASK FOR THREE YEARS.

I HEARD YOU SAY. YOU MEAN THERE ARE TIMES IN CONTRACTS THAT WE WILL PREPAY? NO, I THINK WE HAVE PREPAID SOME CONTRACTS.

I DON'T, YOU KNOW.

OKAY. AND THAT'S MAINLY FOR FUNDING, I'M GUESSING.

AND I HAD A TALK WITH ANDREW EARLIER TODAY IS YOU KNOW, I THINK THE BIG QUESTION IS, YOU KNOW, WITH THE PUBLIC IS, YOU KNOW, THIS IS KIND OF RISKY.

[01:35:07]

AND MOST OF THE PEOPLE THAT ARE SERVING ON YOUR BOARD ARE BUSINESS PEOPLE, YOU KNOW, THAT RUN BUSINESSES AND THAT TYPE OF DEAL.

IT APPEARS TO BE A LITTLE BIT RISKY.

YOU KNOW, IT'S DIFFERENT WHEN IT'S NOT YOUR OWN MONEY, RIGHT? IT JUST IS. AND I'M NOT POINTING THAT.

I'M JUST SAYING IT JUST IS DIFFERENT WHEN IT'S YOUR OWN MONEY.

I THINK YOU MAYBE GIVE PAUSE OF SAYING, I MEAN, THIS IS A NEW ORGANIZATION.

IT'S A NEW COMPANY. I DON'T KNOW WHAT THE ROI IS GOING TO BE.

YOU. MAYBE I'M WILLING TO INVEST 100 OR 250, BUT WHILE 750, IT'S A LOT, I GUESS.

AND THAT'S WHAT AND I'D ASK ANDREW EARLIER TODAY AND SAID, YOU KNOW, I WOULD LIKE TO HEAR, YOU KNOW, THE WISE AND LAURA WILL GET UP AND TELL US.

YOU KNOW WHY IT'S WORTH IT.

AND I GET IT. I MEAN, BUT TO INITIALLY DUMP 750 IN A NEW ORGANIZATION THAT YOU'RE FORMING NOW TO GET YOU SPENT 350 ISH ON THE STUDIES TO HELP LAY THE FOUNDATION TO SAY, WE REALLY WANT TO MAKE SURE THIS IS GOING TO BE SUCCESSFUL.

IT'S GOING TO BE BENEFICIAL, YOU KNOW, TO OUR COMMUNITY.

TO ME, THAT'S JUST A BIG $750,000, A LOT OF MONEY.

YOU KNOW, I MEAN, IT IS A RISK.

THAT'S WHAT WE DO IN ECONOMIC DEVELOPMENT.

WE HAVE TO TAKE RISKS SOMETIMES IN FOSTERING ECONOMIC GROWTH IN OUR AREA.

AND I THINK HOPEFULLY LAURA HAS WITH HER ALREADY THE BENEFITS THAT THE RANGE HAS HAD.

I KNOW IT'S OVER $1 MILLION IN BENEFIT THAT IT'S ALREADY PROVIDED, ESPECIALLY IN ONE GRANT TO TEXAS TECH IS OVER $1 MILLION.

THAT THE RANGE HELPED WITH TEXAS TECH ON THAT.

AND SO WE'VE ALREADY GOT OUR ROI.

BUT YES, IT WAS A RISK TAKING THAT.

I MEAN, I THINK THAT'S PART OF OF WHAT WE DO TO TRY TO, TO, TO DO ECONOMIC GROWTH IN OUR AREA AND CREATE WEALTH HERE.

THAT'S ONE OF OUR PART OF OUR MISSION STATEMENT.

AND SO, YES, I UNDERSTAND YOU KNOW, OUR CITIZENS CONCERN YOU KNOW, AND SO, YOU KNOW, I CERTAINLY HOPE THAT, YOU KNOW, BY IF LAURA HAS THE OPPORTUNITY TO COME UP AND, AND GIVE THE BENEFITS OF THE RANGE AND ALREADY CAN SHOW YOU WHAT THE ROI IS ON THAT.

SO IN YOUR STUDIES OF THE RANGE, I MEAN, ESPECIALLY WHEN YOU'RE GOING INTO IT, DID YOU KNOW, AND MAYBE THIS ISN'T A FAIR QUESTION TO ASK YOU GUYS, BUT I WOULD GUESS IN YOUR STUDIES OF IT BEFORE YOU MOVE FORWARD DID WE LOOK AND SEE? I MEAN, HOW MANY MEMBERS, I MEAN, WERE WE WHO ARE WE APPROACHING OR WHO ARE YOU GUYS APPROACHING OR WHO IS THE RANGE APPROACHING? SAY, HEY, THESE ARE THESE ARE GOING TO BE SOME STAKEHOLDERS IN THIS THING.

AND, YOU KNOW, AND TO WHAT AMOUNT? I MEAN, WAS THE EDC THE THE LARGEST BY FAR.

I MEAN, WERE THERE OTHER ASKS OF MEMBERSHIPS AT THAT AT THAT AMOUNT, YOU CAN'T ANSWER.

OKAY. AND THAT'S OKAY. YOU CAN ANSWER THAT.

I GET IT. OKAY.

ALL RIGHT. WE KNEW WE WERE GOING TO BE IN AT THE LARGEST LEVEL, THOUGH.

WE DID KNOW THAT. I MEAN, WE NEEDED TO BE BECAUSE WE HELPED SET THE ORGANIZATION AT LEAST THE FOUNDATION FOR IT.

YEAH. OKAY.

ALL RIGHT. THANK YOU.

ANY OTHER QUESTIONS FOR MR. CARTER? MR. CARTER, THANK YOU FOR BEING HERE.

LAST AND FINAL QUESTION FOR ME.

SO IT WAS YOUR INTENT TO CREATE THE RANGE INSIDE OF THE EDC? NO, NO.

OKAY. SO IT WAS NOT YOUR INTENT TO CREATE ALWAYS GOING TO BE AN INDEPENDENT ORGANIZATION.

THAT'S THE FRAMEWORK THAT THE STRATEGIC PLAN I THINK I, I THINK YOU ALL SHOULD HAVE THOSE STRATEGIC PLANS.

I KNOW MAYOR I SENT YOU AND AND AND FORGIVE ME, I THINK I CAN LOOK BACK.

I KNOW THAT YOU HAD A QUESTION ABOUT THE INVOICE.

I KNOW WHEN YOU ASKED FOR ALL THE DOCUMENTATION, I'M PRETTY SURE THAT THAT RANGE INVOICE WAS IN THERE.

BUT I'LL GO BACK AND CHECK.

MY APOLOGIES IF YOU DIDN'T HAVE THAT.

I THINK THE ISSUE THAT WAS IN THE I THINK IT WAS PART OF THE AUDIT.

SO I APPRECIATE THAT.

I THINK THE ISSUE IS THE GLOBAL FOOD HUB WAS ESTABLISHED IN JANUARY.

RANGE WAS IN APRIL.

PAYMENT WAS MADE IN JANUARY, ASSUMING IT WOULD HAVE GONE TO THE GLOBAL FOOD HUB, NOT THE RANGE, BUT THAT'S IT'S JUST A DBA.

SO IT'S THE SAME ORGANIZATION.

SAME ORGANIZATION.

ISN'T THAT RIGHT ON THE CORPORATE? I THINK THE THE QUESTION WOULD BE PROBABLY A CONTRACT VERSUS A MEMBERSHIP.

YEAH. YOU KNOW, LIKE ONE OF THOSE IS A 500 AND 1C3.

THE OTHER ONE IS A C6.

SO ONE OF THOSE CAN RECEIVE BECAUSE IT'S SET UP TO HAVE MEMBERSHIP, THE PARENT ORGANIZATION.

SO IT'S A MEMBER THAT'S, THAT'S A MEMBERSHIP BASED ORGANIZATION.

THE QUESTION WOULD BE IF YOU DID NOT INTEND TO CREATE THIS AND YOU WERE JUST A MEMBERSHIP HOLDER, THEN DID YOU FUND A WIRE TRANSFER INCORRECTLY AS A, AS A MEMBERSHIP THAT THAT WAS GOING AS A CONTRACT, MEANING THE THE RANGE WASN'T THE ENTITY WASN'T THERE TO SELL MEMBERSHIPS UNTIL APRIL, I BELIEVE.

SO DID WE PREPAY A MEMBERSHIP OR DID WE PAY ON A CONTRACT, OR DID WE ESTABLISH THESE COMPANIES INSIDE OF THE EDC? NO CONTRACT WAS NO CONTRACT, SO IT HAD TO BE A MEMBERSHIP FOR DUES.

WE PAID THE 750,000 750,000 INVOICE FOR OUTSIDE LEGAL WORK WAS DONE BY THE RANGE TO SET UP THE ORGANIZATION.

[01:40:01]

SO 750,000 INVOICE FOR DUES PAYABLE TO THE ECONOMIC OR I'M SORRY, THE GLOBAL FOOD HUB AMARILLO GLOBAL FOOD HUB WHICH YOU UNDERSTOOD WAS A C3. NO, IT'S A C6.

IT'S A C6. C3 IS A NONPROFIT.

THAT CAN THAT YOU CAN WRITE OFF FOR CHARITY.

C6 IS A MEMBERSHIP BASED ORGANIZATION, JUST LIKE WE ARE, JUST LIKE THE CHAMBER OF COMMERCE IS.

YOU CAN, YOU CAN.

IT'S A MEMBERSHIP BASED ORGANIZATION.

MAN, I THANK YOU FOR BEING UP HERE AND VISITING WITH US.

THANK YOU. APPRECIATE IT.

MRS. STREET, I APOLOGIZE FOR YOU HAVING TO SIT IN YOUR CHAIR AND LISTEN TO ALL THAT WHEN YOU PROBABLY HAVE THE ANSWERS.

AND SO PLEASE FEEL FREE TO TAKE US BACK AND REDIRECT AND CORRECT AND EDUCATE US ON ON HOW THIS CAME ABOUT.

WELL, THANK YOU FOR THE OPPORTUNITY TO DO THAT AND I'M HAPPY TO TAKE ANY QUESTIONS AT ANY TIME.

I WILL SAY WE'VE BEEN WORKING ON THIS NOW FOR THREE YEARS.

IT HAS BECOME MORE COMPLICATED AS TIME GOES ON, AS IT SHOULD BE.

I'LL TRY AND SIMPLIFY IT FROM THE VERY BEGINNING TO KIND OF ALLOW YOU TO FOLLOW ALONG WITH WHY WE ARE WHAT WE ARE, AND HOW THAT CAME ABOUT.

I ALREADY GAVE YOU THE HISTORICAL PERSPECTIVE OF THAT AS IT STARTED WITH THE EDC.

THIS IS A CALCULATED RISK.

ANY TIME THERE'S A STARTUP, ANYTIME THERE'S A NEW BUSINESS MODEL, A NEW BUSINESS THOUGHT, ENTREPRENEURSHIP, WHATEVER YOU WANT TO CALL IT, IT DOESN'T MATTER ON NONPROFIT ORGANIZATIONS OR STARTUPS.

ALSO, AND IN THE EVOLUTION OF A NORMAL NONPROFIT ORGANIZATION OR A USUAL NONPROFIT ORGANIZATION, AND I HAVE A CERTIFICATE IN NONPROFIT MANAGEMENT.

THERE IS AN EVOLUTION OF THAT ORGANIZATION AS A STARTUP FOR A PERIOD OF TIME.

AND THEY EVEN LOOK AT IT AS, YOU KNOW, LIKE WHEN YOU'RE GROWING UP, YOU'RE A TODDLER, YOU'RE IN GRADE SCHOOL, YOU'RE YOU'RE AN ADOLESCENT, AND THEN YOU'RE MATURE.

AND IT TAKES 20, 20 YEARS FOR MOST ORGANIZATIONS TO BECOME MATURE.

THIS IS A STARTUP, NONPROFIT ORGANIZATION.

IT IS BASED ON A MEMBERSHIP MODEL, A 500 AND 1C6.

AND WE DID THAT BECAUSE WE VISITED THE PERMIAN STRATEGIC PARTNERSHIP IN MIDLAND-ODESSA AREA.

AND THIS IS PRETTY MUCH THE MODEL THAT THEY USED.

AND THEY HAVE BROUGHT IN SO MUCH FUNDING FROM THE STATE AND FEDERAL GOVERNMENT FOR INFRASTRUCTURE, EDUCATION, HEALTH CARE AND HOUSING IN THAT AREA.

WE THOUGHT FROM OUR INTERVIEWS AND AS I SAID, WE DID OVER 150 INTERVIEWS AND THAT IS OF INDUSTRY, EDUCATIONAL BUSINESSES, ORGANIZATIONS, AGENCIES, YOU NAME IT.

WE WERE LOOKING AT FIRST THE PANHANDLE, BECAUSE THIS IS THE AMARILLO ECONOMIC DEVELOPMENT CORPORATION.

WE KNEW THAT WE HAD SOME QUESTIONS TO ASK ABOUT WHAT DO WE DO TO SUPPORT WHAT WAS GOING ON AT THE HEALTH SCIENCES CENTER WHEN WE DID THE 150 OVER 150 INTERVIEWS AND GROUP SESSIONS, WE REALIZED THIS WAS FAR BIGGER THAN THE EDC.

WHAT WE HAD IN FRONT OF US WAS A DISCUSSION ABOUT SOMETHING THAT WE COULD START THAT WAS BECOMING REGIONAL, NATIONAL AND GLOBAL.

BUT WE DIDN'T KNOW EXACTLY WHAT THAT WAS.

WE KNEW THAT IT WAS GOING TO BE INDUSTRY LED BECAUSE THAT'S WHAT THE INDUSTRY WAS COMING OUT WITH.

WE ALSO KNEW THAT WE HAD TO GET OUR UNIVERSITIES, COLLEGE AND OTHER HIGHER EDUCATIONAL INSTITUTIONS TO WORK WITH US ON THIS, TO BE A REAL INNOVATION HUB, A REAL RESEARCH AND INNOVATION HUB.

SO WE HIRED HRA ADVISORS IN THE EDC TO DO A FEASIBILITY STUDY.

I HAVE A 57 PAGE FEASIBILITY STUDY I'M HAPPY TO SEND TO YOU AT ANY TIME.

THAT SAID TO US, WE HAVE A BIG THING GOING ON RIGHT NOW WITH ALL WE HAVE IN OUR AREA.

AS I SAID, THE LARGEST BEEF AND DAIRY SHED IN THE NATION, IN THE WORLD, RIGHT HERE, WE HAVE AGRICULTURE.

WE HAVE EVERYTHING TO BE A GLOBAL FOOD HUB.

SO ORIGINALLY WE NAMED IT JUST TO HAVE SOMETHING TO TALK ABOUT.

THE AMARILLO GLOBAL FOOD HUB.

THE RANGE BRANDING CAME LATER ON BECAUSE WE KNEW WE NEEDED TO HAVE A BRAND.

JUST LIKE OTHER RESEARCH INNOVATION ECONOMIC DEVELOPMENT HUBS AROUND THE UNITED STATES.

WE HIRED HRA BECAUSE THIS IS WHAT THEY DO ALL OVER THE UNITED STATES.

THE SENIOR DIRECTOR THAT WORKED WITH US IS IN CHARGE OF THE RESEARCH TRIANGLE IN NORTH CAROLINA.

THEIR MODEL WE LOOKED AT ALSO, WE LOOKED AT AT KANSAS, AT PURDUE, UNIVERSITY OF CALIFORNIA AT DAVIS.

DOCTOR GARNER AND I WENT TO THE ASSOCIATION FOR UNIVERSITY RESEARCH PARKS NATIONAL CONFERENCE SO THAT WE COULD LEARN MORE ABOUT WHAT THIS REALLY MEANS.

I'M A MEMBER OF THE TEXAS TECH RESEARCH PARK BOARD, SO THERE WAS A LOT OF DISCUSSION GOING ON ABOUT WHAT REALLY DO WE HAVE, HOW DO WE SYNERGIZE THAT? HOW DO WE LOOK FORWARD? WE KNOW THAT WE HAVE ISSUES HERE WITH JOBS, WITH BUSINESSES WHO ARE LOOKING AT US TO MOVE IN.

YOU KNOW, WE ARE A SMALL RURAL AREA AND LOOKING AT THE STATE OF TEXAS.

WE DO HAVE SOMETHING TO BUILD ON THAT WILL CREATE A GLOBAL HUB.

IF WE DON'T DO THIS, THE REST OF THE NATION IS GOING TO PASS US BY.

[01:45:05]

WE'RE GOING TO REMAIN THE SAME THAT WE ARE.

BUT I'M NOT GOING TO DO ANY PHILOSOPHY ON THAT.

I'M JUST GOING TO TELL YOU EXACTLY HOW THIS CAME ABOUT.

SO WE DECIDED THEN THAT WE WOULD FORM THE AMARILLO GLOBAL FOOD HUB.

WE ALSO HIRED HRA TO BE OUR STAFF.

IN THE BEGINNING, THERE WERE FIVE PEOPLE FROM THAT ORGANIZATION THAT THAT HELPED US OVER A PERIOD OF A YEAR, I BELIEVE, AND I'M NOT I DON'T HAVE MY PAPERS HERE TO MAKE SURE THAT I HAVE ALL MY FACTS CORRECT.

I'M JUST GIVING YOU THE HIGHLIGHT HERE.

BUT WE HIRED THEM BECAUSE NO ONE ELSE HERE HAD THE EXPERTISE TO PUT SUCH A HUB TOGETHER.

WE KNEW THAT WE WANTED TO DO IT IN A SHORT PERIOD OF TIME, AS WE POSSIBLY COULD.

THE BUSINESS STANDARD OF A REGIONAL OR A GLOBAL HUB, THAT IS ECONOMIC AND RESEARCH AND INNOVATION IS, AS I SAID BEFORE, 3 TO 5 YEARS JUST TO START SEEING SOME RETURN.

WE'RE IN OUR THIRD YEAR NOW.

WE NOW HAVE ALMOST $2 MILLION IN-HOUSE OF GRANTS AND MONIES THAT WE RECEIVED FROM THE TEXAS DEPARTMENT OF AGRICULTURE, FROM AMARILLO AREA FOUNDATION, FROM THE NATIONAL INSTITUTE OF HEALTH.

WE APPLIED TO THE NATIONAL SCIENCE FOUNDATION FOR $168 MILLION GRANT WITH THE AMARILLO COLLEGE.

OUT OF 500 APPLICATIONS.

WE WERE WE WERE THE 15TH.

THEY FUNDED 12.

THAT'S A LOT OF MONEY TO COME INTO OUR AREA TO BUILD THIS INNOVATION HUB.

WE WERE ASKED TO REAPPLY AND SO WE WILL REAPPLY.

WE JUST APPLIED FOR A $12 MILLION GRANT THAT WE WERE ASKED TO APPLY FOR.

BECAUSE WHAT WE FOUND OUT ALSO IN THIS IS THAT THERE IS MONEY THAT IS SLATED FOR AREAS LIKE OURS.

TEXAS DEPARTMENT OF AGRICULTURE SAID THERE IS MONEY FOR THE PANHANDLE OF TEXAS, BUT WE NEED A MECHANISM TO TO SEND IT TO THE PANHANDLE OF TEXAS THAT ALLOWS INNOVATION, COLLABORATION, PARTNERSHIPS AND SUSTAINABILITY.

THAT'S THE RANGE.

NO ONE ELSE HAS EVERYTHING TOGETHER BECAUSE WE HAVE EVERYBODY WORKING TOGETHER, INDUSTRY AND NONPROFIT ORGANIZATIONS AND FOUNDATIONS AND UNIVERSITIES AND YOU NAME IT, I MEAN, EVEN AMTECH.

AMTEC. SO THERE'S ALL OF THIS THAT HAS TO COME TOGETHER TO CREATE THIS HUB.

AND WITH THAT, WE DECIDED WE REALIZED WE DID MORE STUDY.

WE REALIZED THAT WE HAD PRIORITIES IN OUR AREA.

AND IT STARTS IN THE IN THE AMARILLO AREA.

AMARILLO IS THE PLACE WHERE THIS IS GOING TO BE THE HUB.

WE NEED VENDORS TO SUPPORT ALL OF THIS ACTIVITY.

WE NEED CPAS, WE NEED BANKERS, WE NEED MARKETING FIRMS, WE NEED YOU NAME IT.

ALL THE THINGS THAT NEED TO SUPPORT THIS KIND OF ECONOMIC STRUCTURE, WE'RE GOING TO NEED TO BRING IN OR DEVELOP.

BUT OUR PRIORITIES WERE NUMBER ONE, WATER.

WE TALKED TO EVERYBODY ABOUT WATER.

WE'RE GOING TO RUN OUT OF WATER IF WE DON'T DO SOMETHING DIFFERENT.

AND I'VE GOT TONS OF EXAMPLES OF THAT AND ENVIRONMENTAL STEWARDSHIP AND EMISSIONS WITH ALL OF OUR CATTLE.

ONE OF THE BIGGEST THINGS RONNIE JACKSON TOLD US ABOUT IS THAT WE NEED TO DECREASE THE EMISSIONS OF OUR CATTLE AND GAS BECAUSE OF THE WAY THEY WORK.

AND DOCTOR GARNER, THAT'S ONE OF HIS SPECIALTIES, IS COW RUMEN.

AND THAT'S WHAT WHAT WE'RE LOOKING AT AUTOMATION AND WORKFORCE DEVELOPMENT.

WORKFORCE DEVELOPMENT IS PROBABLY OUR SECOND BIGGEST BEHIND WATER.

WE HAVE A TEXAS DEPARTMENT OF AGRICULTURE WORKFORCE PROGRAM GOING ON RIGHT NOW, ALSO WITH THE TEXAS WORKFORCE COMMISSION, DATA MANAGEMENT AND ANALYTICS.

WE DON'T KNOW EXACTLY WHAT WE HAVE HERE.

WE THINK WE KNOW IT, BUT WE'VE GOT TO DO SOME MANAGEMENT OF OUR DATA.

WE HAVE TO ANALYZE IT.

AND A GOOD EXAMPLE IS THE BROADBAND PROJECT WITH AMARILLO AREA FOUNDATION THAT IS NOW ALSO WITH REGION 16, IN GETTING BROADBAND TO ALL THE AREAS IN THE PANHANDLE OF TEXAS THAT NEED IT, BECAUSE OUR FARMERS AREN'T GOING TO BE ABLE TO CHANGE FROM IRRIGATION THAT IS AERIAL, THAT LOSES 90% OF THE WATER BY THE TIME IT GETS TO THE GROUND, TO GROUND AREA, TO GROUNDWATER, BECAUSE IT COSTS TOO MUCH MONEY.

WE CAN WRITE GRANTS FOR THAT.

THERE'S MILLIONS OF DOLLARS OUT THERE THAT HANNAH HAS SHOWN US THAT WE HAVE ACCESS TO, BUT WE NEED THIS ENGINE IN ORDER TO DO THAT.

SO MRS STREET, I REALLY APPRECIATE THE THE EDUCATION ON THAT.

IS THERE ANYTHING ELSE THAT YOU'VE GOT IN THE INCUBATOR OTHER THAN THE ONES THAT YOU JUST SPOKE TO? WE DO.

WE HAVE WELL, THERE'S A COUPLE OF THINGS I REALLY CAN'T TALK ABOUT JUST YET, BECAUSE IT'S JUST LIKE ECONOMIC DEVELOPMENT AND BUSINESSES WHEN WHEN WE'RE HAVING THIS DISCUSSION AND THEY'RE SAYING, YES, WE'RE GOING TO GIVE YOU THIS, BUT IN RETURN, YOU KNOW, CAN YOU DESCRIBE THE INDUSTRY OR MAYBE THE IMPACT THAT YOU'RE LOOKING TO MAKE? WELL OH, THE IMPACT, YES.

SURE. IT'S GOING TO BE WITH AGRICULTURE.

[01:50:01]

AND WE HAVE THERE'S FOUR PROGRAMS THAT ARE COMING THAT WE'RE PUTTING TOGETHER RIGHT NOW.

WE HAVE $3.5 MILLION THAT THAT IS IN THE PIPELINE THAT WE'RE GETTING READY TO ANNOUNCE ANNOUNCED PROBABLY BY THE FIRST OF THE YEAR THAT 3.5 MILLION IS SOMETHING THAT'S GOING TO COME IN EACH YEAR FOR AT LEAST TWO YEARS, AND MAYBE BEYOND THAT.

WHAT WE'RE BEING TOLD BY THE TEXAS DEPARTMENT OF AGRICULTURE IS THAT IF WE CAN SHOW WITH THE FIRST $300,000 THEY HAVE GIVEN US, THAT'S WHAT WE HAVE THIS YEAR.

IF WE CAN SHOW THAT, WE CAN MAKE IMPACT ON WHAT WE HAD TALKED ABOUT IN THE RANGE, THEN WE WILL CONTINUE TO HAVE THAT KIND OF MONEY COME IN AND THERE WILL BE MORE DOWN THE ROAD BECAUSE AS WE'VE BEEN TOLD, IT'S THERE.

WE NEED TO MATURE, WE NEED TO PUT OURSELVES TOGETHER.

WE NEED TO MAKE SURE THAT WE HAVE SOMETHING THAT'S SUSTAINABLE IN THIS.

THE OTHER THING IS THE HEALTH AND NUTRITION.

THAT'S ANOTHER AFTER DATA MANAGEMENT AND ANALYTICS IS HEALTH AND NUTRITION.

WE HAVE $1.6 MILLION GRANT FROM THE NATIONAL INSTITUTE OF HEALTH THAT IS FOR HEALTH AND NUTRITION IN THE PANHANDLE AREA.

THAT HAS TO DO WITH WOMEN AND PREGNANCY AND NEWBORNS AND BREASTFEEDING.

THAT'S A LOT OF MONEY.

AND THAT'S GOING TO THE RANGE THAT IS COMING THROUGH THE RANGE.

THE RANGE DOESN'T HOLD THIS MONEY.

THE RANGE WILL WRITE A GRANT, SAY, THE $300,000 FOR THE TEXAS DEPARTMENT OF AGRICULTURE THAT COMES TO US, AND WE DISPENSE THAT IN THE ORGANIZATIONS AND AGENCIES, UNIVERSITIES, INDUSTRY THAT'S GOING TO DO THE PROGRAM.

SO YOU YOU'RE THE GRANT WRITER.

WE'RE THE GRANT WRITER. AND WE UTILIZE GRANT GRANT WRITERS ALSO FROM BOTH UNIVERSITIES.

DO YOU JUST TO DEVIATE REAL QUICK, AND THEN I'LL LET YOU JUMP BACK IN WITH WHAT'S LEFT IN THE INCUBATOR.

DO YOU FEEL LIKE THE RANGE COULD BE A COMPETITOR FOR OTHER GRANTS, LIKE MAYBE IF WE'RE GOING AFTER THE SAME WOMEN'S GRANTS OR, YOU KNOW, NIH? I MEAN, DO YOU HOW DO YOU HOW DO YOU MAKE SURE YOU'RE NOT COMPETING AGAINST TEXAS TECH AND, AND OTHER PEOPLE THAT ARE APPLYING FOR THE SAME GRANTS? WE DON'T COMPETE WITH TEXAS TECH OR ANYONE ELSE.

WE WORK WITH THEM.

THAT $1.6 MILLION IS GOING TO TEXAS TECH.

WE HELP THEM WRITE THE GRANT.

WE IDENTIFIED IT.

WE IDENTIFIED IT, HOW IT WAS GOING TO COME IN, WHAT IT NEEDED TO HAPPEN, WHAT KIND OF A GRANT NEEDED TO GO IN.

WE WROTE THE GRANT WITH THEM.

I SHOULD SAY DOCTOR GARNER DID WROTE THE GRANT WITH THEM.

DOES TEXAS TECH PAY FOR THAT SERVICE? PAY FOR. WELL, IS THERE A DOES THE RANGE GET PAID IN ORDER TO PERFORM THAT REQUEST? NOT AT THIS POINT. OKAY.

SO SO THE RANGE WAS JUST ASSISTING IN WRITING THE GRANT.

RIGHT. OKAY.

BUT IT COMES IN BECAUSE IT'S PART OF THE RESEARCH INNOVATION ENGINE.

OKAY. IF THAT MAKES SENSE.

THEY I MEAN, IT DOES AND IT DOESN'T, JUST BECAUSE I SEE TEXAS TECH AS A PHENOMENAL STAKEHOLDER THAT WRITES THEIR OWN GRANTS.

SO I DON'T FOR ME, IT WOULD JUST BE THE IGNORANCE OF NOT KNOWING WHY TEXAS TECH WOULD NEED, YOU KNOW, OUR HELP.

WELL, HERE'S HERE AND HERE'S WHAT WE FOUND OUT.

THERE ARE GRANTS THAT TEXAS TECH COULD WRITE FOR THAT THEY MAY OR MAY NOT BE AWARDED.

BUT IF THERE IS TRANSLATIONAL RESEARCH THAT TEXAS TECH IS DOING WITH THEIR RESEARCH AND THEY'RE WRITING GRANTS TO GET FUNDING FOR THAT, IT'S NOT TRANSLATED TO PRACTICE. GOOD EXAMPLE, THE WATER SITUATION.

WE HAVE A PHD AND HE'S HEADING UP THE WATER.

THE WATER INITIATIVE.

YES, TEXAS TECH CAN WRITE GRANTS ON RESEARCH ON HOW WE'RE GOING TO CHANGE WHAT WE DO WITH WATER.

BUT THAT'S NOT TRANSLATED TO THE RANCHER AND THE FARMER AS TO HOW ARE WE GOING TO FUND THAT WITH THEM? HOW ARE WE GOING TO WORK WITH THEM? WHAT ARE WE GOING TO DO EXACTLY? IT'S JUST RESEARCH ABOUT WE SHOULD DO X.

X MAY NOT LOOK LIKE X ON THE FARM OR THE RANCH.

DAIRIES ARE YOU KNOW, WE HAVE WHAT, 32 DAIRIES WE HAVE.

WE HAVE BEEF PRODUCTION.

BEEF PRODUCTION I'M SORRY.

BEEF PACKING PLANTS.

WE HAVE SEVERAL DIFFERENT AREAS THAT WE CAN LOOK AT THAT USE WATER.

YES, WE HAVE WATER DISTRICTS.

WE HAVE AN ORGANIZATION WITH WATER.

WE'RE BRINGING ALL OF THIS TOGETHER TO TALK ABOUT WHAT WE NEED TO DO WITH WATER IN OUR REGION.

OKAY. IF I CAN GET YOU TO HANG IN THERE WITH US, I KNOW I'M I'M REALLY BEING A BURDEN ON YOUR TIME.

NO. YOU'RE GOOD.

I JUST WE'RE GOING TO TAKE A RECESS IN A MINUTE.

WE'RE GOING TO GO AHEAD AND TRY TO FINISH HERE.

SO YOU GUYS HANG IN THERE. I KNOW WE'VE PUSHED PRETTY CONTINUALLY HERE, BUT I WOULD LIKE TO FINISH WITH WITH MRS STREET.

AND THEN I DO WANT TO ALLOW COUNCIL BECAUSE I THINK SOME OF THE OTHER POINTS YOU'D LIKE TO GET TO, I THINK ARE A LOT OF OUR QUESTIONS.

SO I WOULD LIKE TO LET COUNCIL ADDRESS YOU WITH SOME QUESTIONS.

AND SO COUNCIL DOES ANYBODY HAVE A QUESTION THEY WOULD LIKE TO OFFER? I DO. YES, SIR.

MISS STREET ONE, THANK YOU FOR ALL YOU DO FOR OUR COMMUNITY.

I'M SORRY. SO THANK YOU FOR ALL YOU DO FOR OUR COMMUNITY AND CITY.

PLEASE CALL ME THAT. WHAT ARE THE BENEFITS OF THE MEMBERS? SO, YOU KNOW, THE EDC IS A MEMBER.

PRETTY BIG MEMBER. WHAT'S THE BENEFIT TO THEM OR ANY OTHER MEMBERS.

[01:55:04]

THE BENEFIT OF THE MEMBERSHIP, WHOEVER IT IS, IS GOING TO BE A MEMBER, WHETHER IT'S A BANK OR A UNIVERSITY OR A BUSINESS OR AN INDUSTRY ITSELF. THE BENEFIT IS THAT WE HAVE GROWTH IN OUR AREA, WHICH INCREASES EVERYTHING AND EVERYONE WE HAVE.

LET'S GO TO OUR PRIORITIES.

WE HAVE BETTER USAGE OF WATER.

WE KNOW HOW TO WORK WITH IT SO THAT WE HAVE IT FOR THE FUTURE.

WE HAVE ENVIRONMENTAL STEWARDSHIP OF ALL THE THINGS THAT ARE GOING TO HAPPEN IN FOOD PRODUCTION.

WE WANT TO BE ABLE TO MAKE THE DECISIONS AS TO HOW THIS IS GOING TO BE PRODUCED, RATHER THAN SOMEBODY FROM THE OUTSIDE COMING IN AND TELLING US THIS IS WHAT WE'RE GOING TO DO.

AND A GOOD EXAMPLE IS THAT CAVERNOUS BEEF SAYS THAT, YOU KNOW, SOMEONE COMES IN AND SAYS, I WANT TO SELL YOU THIS WIDGET.

IT'S GOING TO HELP YOU CUT YOUR BEEF UP BETTER.

THERE'S NOBODY HERE TO FIX IT.

IF WE PRODUCE IT, IF WE MAINTAIN IT, IF WE TRAIN THE WORKFORCE TO USE IT.

AND THAT'S WHAT THIS TEXAS COMMISSION WORKFORCE PROGRAM IS DOING RIGHT NOW, IS THAT WE'RE TRAINING ALL OF THEIR BEEF BEEF PRODUCTION PEOPLE TO USE A CERTAIN MACHINE INSTEAD OF THEM SENDING ALL OF THEIR PEOPLE TO NORTH.

I THINK IT'S NORTH CAROLINA.

THEY SEND THEM TO SO.

SO THERE'S NO DIRECT ROI TO ANY.

THESE ARE BASICALLY STAKEHOLDERS IN THE COMMUNITY THAT WE WANT TO SEE AMARILLO GROW AND WE WANT TO PROSPER.

SO THE MEMBERS, THEY'RE BASICALLY INVESTING IN THE BETTERMENT OF THE CITY OR COMMUNITY OR AREA.

WOULD THAT BE FAIR TO SAY? WELL, I THINK IT GOES BEYOND THAT BECAUSE WE'RE ALL GOING TO WE'RE ALL GOING TO SEE ECONOMIC DEVELOPMENT.

THAT'S THE BOTTOM LINE, IS THE ECONOMIC DEVELOPMENT.

WHETHER YOU'RE AN INDIVIDUAL OR A BUSINESS OR AN ORGANIZATION, YOU'RE GOING TO BENEFIT FINANCIALLY FROM THAT.

THE THE RANGE IS NOT, BUT THE RANGE NEEDS TO HAVE AN ENGINE TO BE ABLE TO PULL ALL THIS IN.

YEAH. OKAY, SO WHEN WE WHEN Y'ALL DO RECEIVE THE GRANT FUNDING WHO DRIVES THE INITIATIVES? I MEAN, WHO IS IT? THE BOARD. THE BOARD? ARE THEY THE ONES THAT DECIDE? I MEAN, WHO DRIVES THOSE INITIATIVES OR WHAT THEY GO AFTER? AND THEN WHEN WE DO GET THE FUNDING, WHO THAT'S DISPERSED TO, OR IT'S USED FOR THE THE WHO, WHO DRIVES THE INITIATIVE TO DO THIS.

IT'S OUR PRIORITIES AND IT'S THE PHDS, THE THE PEOPLE IN THE INDUSTRIES THAT WE'RE WORKING WITH.

WHAT'S OUR BIGGEST PROBLEM? WHAT DO WE NEED TO LOOK AT? WE'LL TAKE EMISSIONS, FOR EXAMPLE.

THAT IS SOMETHING THAT WE WE WERE FINDING OUT FROM LOTS OF DIFFERENT AREAS, THE ENVIRONMENTALISTS, THE EVEN IN WASHINGTON DC.

YOU KNOW, THERE'S A LOT THAT A LOT THAT NEEDS TO BE SAID ABOUT DECREASING OUR ENVIRONMENTAL EMISSIONS BECAUSE WE HAVE SO MUCH ANIMAL PRODUCTION HERE IN DAIRIES AND CATTLE. AND IF WE LOOK AT THAT, THEN WE ARE ACTUALLY LOOKING AT WHAT KIND OF FUNDING DO WE HAVE TO DECREASE THAT EMISSIONS? WHAT? THOSE EMISSIONS? WHAT KIND? WHAT CAN WE DO? WE CAN ACTUALLY CAPTURE IT AND USE IT FOR FUEL.

WE NEED TO TRANSLATE THAT.

SO IF WE CAN GO INTO AN AREA WHERE WE HAVE THE ABILITY TO WRITE GRANTS FOR AN IDEA, AND LET'S SAY A RESEARCHER AT TEXAS TECH HAS THIS IDEA, WRITES THE GRANT GETS THE MONEY, THERE'S RESEARCH THAT'S DONE.

WE CAN DO SOMETHING DIFFERENT.

WE CAN BE INNOVATIVE WITH THIS.

THAT'S GOT TO TRANSLATE TO HOW WE'RE GOING TO REALLY BE ABLE TO DO THAT.

AND THAT TAKES IT TO INDUSTRY.

OKAY. WHO WHO WAS THE BRAINCHILD BEHIND THE RANGER, THE AMARILLO GLOBAL FOOD HUB.

WHO WAS IT? A GROUP LIKE WHO CAME TOGETHER AND THOUGHT, WE WANT TO USE THIS SYNERGY BECAUSE WE HAVE ALL THIS HERE.

WHO WHO WAS IT? WELL, IT STARTED, OF COURSE, WITH THE EDC AND THE FEASIBILITY STUDY.

OKAY. FROM THAT, WE CREATED A LEADERSHIP TEAM.

AND THE LEADERSHIP TEAM WERE 16 PEOPLE THAT WE CHOSE BASED ON THE INDUSTRIES THAT WE THINK WE WANT TO LOOK AT THAT THROUGH THE GLOBAL FOOD HUB AND OTHER SKILLS AND SKILL SETS OF PEOPLE FROM BANKING, FROM ACCOUNTING, FROM FOUNDATIONS, FROM, YOU KNOW, THERE ARE 16 PEOPLE AND I'VE GOT I DON'T HAVE THE LIST WITH ME.

IF I TRIED TO REMEMBER THEM ALL, I FORGET THEM.

BUT I CAN SEND ALL OF THIS TO YOU SO THAT YOU CAN SEE.

BUT THERE WERE PEOPLE THIS LIST OF 16 PEOPLE WERE CHOSEN BECAUSE OF HOW THEY'VE BEEN ABLE TO ADVANCE OUR COMMUNITY IN THEIR WORK, IN AND HOW THEY LOOK AT THE CITY AND WHAT THEY DO TO MAKE IT BETTER.

WE CHOSE THEM FOR WHO THEY WERE.

OKAY. AND PERCENTAGE WISE, WE KNOW THAT THE EDC IS THE LARGEST CONTRIBUTOR OR MEMBER.

PERCENTAGE WISE, WHERE ARE THEY, DO YOU THINK? JUST A GUESS.

WELL, REMEMBER, WE'RE JUST IN YEAR THREE, RIGHT? WE ARE JUST NOW SEEING SOME RETURN.

RIGHT NOW THEY ARE THE LARGEST BECAUSE WE USED THAT $750,000 TO SET THIS UP.

[02:00:03]

SURE. TO DO ALL THE WORK TO BE ABLE TO TO WHAT DEGREE WHERE WE ARE, THEY'RE THE LARGEST.

LIKE HOW LARGE? 80%.

50%. I DON'T HAVE IT.

I DON'T HAVE THE PERCENTAGES BECAUSE WE HAVE OTHER MEMBERS.

WE HAVE BANKS, WE HAVE WE HAVE BUSINESSES, WE HAVE THE UNIVERSITIES.

THE UNIVERSITIES ARE MEMBERS ALSO.

AND THEY HAVE GIVEN TO BECOME MEMBERS.

HOW MANY MEMBERS WOULD YOU SAY YOU HAVE? I DON'T KNOW IF I HAVE THAT NUMBER WITH ME.

JUST AS A GUESSTIMATE. MORE THAN TEN.

LESS THAN. YEAH, I'D SAY I'D SAY I'LL.

I'LL GO FOR 12 BECAUSE WE'RE IN DISCUSSION WITH A THREE MORE.

RIGHT. DO YOU HAVE ANY OTHER MEMBER THAT PAID $50,000.

OH YEAH. OKAY. UNIVERSITIES DO ANYBODY THAT PAID 100,000 OKAY.

ANYBODY THAT PAID 250,000 OTHER THAN THE CITY.

NOT YET.

WE ARE IN DISCUSSION WITH TWO VERY LARGE ORGANIZATIONS THAT ARE TALKING TO US ABOUT DOING THAT.

THEY'RE GOING THROUGH THEIR BOARD ACCESS RIGHT NOW.

BUT BUT YOU DO HAVE OTHER MEMBERS THAT HAVE PAID $100,000? YES. OKAY. YES.

NO. YOU'RE GOOD. NO, I'M.

I'M DONE. THANK YOU.

OKAY. SORRY. COUNCILMAN.

SCHERLEN. I THOUGHT YOU ASKED MY QUESTION.

OKAY. OTHER QUESTIONS FOR MRS STREET.

I HAVE A FEW, BUT I'LL WAIT.

WHY? WHY? TELL ME AGAIN. SO THIS.

THIS ISN'T SOMETHING WE CREATED.

THIS IS SOMETHING THAT'S USED ACROSS THE COUNTRY.

THIS 501 C3, C6, THE C CORP OUT OF THIS.

THIS WAS IN THE ADVICE OF HR AND ADVISORS WHO I SAID DOES THIS ALL OVER THE NATION.

THEY'RE THE LARGEST CONSULTING FIRM THAT SETS THESE UP.

AND WE SET IT UP.

WE WANTED TO DO A 501 C6 MEMBERSHIP GOVERNANCE MODEL.

THAT'S THE THAT'S THE GOVERNING BODY BECAUSE WE HAVE SO MANY DIFFERENT INDUSTRIES THAT ARE INVOLVED ARE GOING TO BE INVOLVED WITH THIS.

IN OUR INTERVIEW PROCESS, WE FOUND OUT THAT WE HAVE A LOT OF DIVERSE INDUSTRY HERE.

THERE ARE AREAS THAT HAVE JUST UNIVERSITIES.

SO IT'S UNIVERSITY LED.

OURS IS INDUSTRY LED.

SO LET'S SEE IF I CAN REMEMBER WHAT YOUR QUESTION WAS.

YEAH. THE SETUP I MEAN THE, THE SO THE PERMIAN ISH INITIATIVE SET UP THE SAME WAY WITH THE.

SO IT'S A PRETTY COMMON SETUP TO HAVE THESE THREE.

IT'S A COMMON SET OF ENTITIES.

YEAH. BECAUSE THEY WERE THEY WERE 20 DIFFERENT COMPANIES IN THE PERMIAN BASIN AREA WHO NEEDED TO COME TOGETHER TO CREATE INFRASTRUCTURE REPAIR BECAUSE OF ALL THE THINGS THAT ARE GOING ON DOWN THERE.

THEY WROTE A GRANT FOR THEY HIRED A COMPANY FOR $1 MILLION TO WRITE A GRANT, AND THEY RECEIVED $600 MILLION FROM THE FEDERAL GOVERNMENT FOR INFRASTRUCTURE WORK.

THEY KNEW AT THAT POINT THEY WERE ON TO SOMETHING.

AND NOW THEY FUND NOT ONLY INFRASTRUCTURE, BUT THEY WRITE GRANTS FOR HEALTH CARE, HOUSING, EDUCATION.

AND THERE'S ANOTHER ONE IN THERE.

BUT BECAUSE THEY SAID TO US, YOU KNOW, THERE'S SO MUCH MONEY OUT THERE THAT WE COULD HAVE ACCESS TO, BUT WE HAVE TO HAVE A SYNERGY OF OF AN INNOVATIVE, DIVERSIFIED GROUP THAT ALLOWS US TO BRING IT IN, ADMINISTER IT.

YOU KNOW, ANY FEDERAL GRANTS WE GET, WE'RE GOING TO BE ADMINISTERING THOSE GRANTS.

WE DON'T.

AND THIS IS HOW THE GRAPH LOOKS WITH HNA.

I HAVE A GRAPH ALSO I CAN SHOW YOU THAT SHOWS THAT IN A STARTUP OF AN INNOVATION HUB, THOSE PEOPLE WHO ARE INVOLVED IN IT IN THE VERY BEGINNING FUND IT PRIMARILY. BUT AS THESE GRANTS ARE WRITTEN, AS THIS MONEY COMES IN, YES, WE CAN WRITE INTO THAT A PERCENTAGE OF EACH GRANT FOR OPERATIONS.

THAT'S WHERE WE HIRE THE PEOPLE THAT WE NEED TO HIRE.

RIGHT NOW WE HAVE TWO EMPLOYEES, BUT AS TIME GOES ON, THEN WE HAVE MORE MONEY THAT WE CAN OPERATE WITH.

IT GETS TO BE A LARGER ORGANIZATION THAT IS MORE EFFECTIVE, MORE EFFICIENT.

WE WRITE MORE GRANTS, WE BRING MORE MONEY IN.

BUT IT'S ALMOST ALWAYS GOING TO BE I'M I'M THINKING 15% OPERATIONS.

AND THE REST OF IT'S GOING TO BE THE MONEY THAT GOES TO OUR AREA.

AND WHY WAS WHY DID WHY NOT SET IT UP INSIDE THE EDC? WHY CREATE A SEPARATE ORGANIZATION TO DO THIS TYPE OF THING? BECAUSE WE HAD TOO MANY DIFFERENT INDUSTRIES, EDUCATIONAL INSTITUTIONS AND ORGANIZATIONS AND AGENCIES THAT DID NOT WANT TO HOUSE THIS IN ONE PUBLIC ENTITY.

AND THAT WAS THE EDC.

AND THEN YOU SAID TEXAS TECH AND WEST TEXAS HAVE BOTH JOINED TOGETHER TO BE PART OF THIS AND FIND VALUE.

AND AND THEIR ADMINISTRATIONS FIND THAT THEY ARE MEMBERS THEY ARE MEMBERS GOOD.

WELL THANK YOU.

YOU DON TO ANSWER YOUR QUESTION, YOU'RE TALKING TO THE PERSON.

THAT PROBABLY IS THE MAJOR EMPHASIS IN THAT SHE DID NOT SAY THIS, BUT THANK YOU FOR ALL THE WORK THAT YOU'VE DONE ON THIS PROJECT.

I THINK IT'S GOT TREMENDOUS OPPORTUNITY.

YOU LOOK AT THE DAIRY AND CATTLE INDUSTRY AND THE BILLIONS OF DOLLARS THAT IT GENERATES.

IF WE BUMP UP THAT 1 OR 2%, ALL THESE PEOPLE ARE GOING TO GET ROI THROUGH ADDITIONAL SALES TAX THROUGH THROUGH MORE BUSINESS.

[02:05:03]

AND I'M SORRY THAT THE RANGE GOT INVOLVED IN THIS, BECAUSE IT'S A GREAT ORGANIZATION THAT I THINK WILL DO A LOT OF GOOD FOR OUR COMMUNITY IN THE FUTURE.

AND THANK YOU FOR. THANK YOU.

IT IS MY HOPE THAT THAT EVERYONE WILL SEE THE POTENTIAL OF THIS, BECAUSE IF WE DON'T DO THIS, WE WILL BE LEFT BEHIND WITH WHAT'S HAPPENING IN THE REST OF THE NATION.

AND WE TRAVELED TO TAKE A LOOK AT IT EVERYWHERE.

SO ANY OTHER QUESTIONS? COUNCILMAN CRAFT.

YES, SIR. SO, MR. STREET, THANK YOU FOR YOUR TIME.

I'M GOING TO ASK A FEW, IF YOU DON'T MIND HANGING IN THERE WITH ME.

JUST SOME VERY DIRECT QUESTIONS.

SO THE $750,000.

PRETTY IMPACTFUL AT THE POINT IN TIME THAT THE RANGE NEEDED IT.

WELL, YES, WE HAD TO HAVE SOMETHING TO START WITH AND THAT WAS WHY THE DECISION WAS MADE.

I REQUESTED THAT I WAS NOT ON THE BOARD OF THE EDC AT THE TIME.

YOU SERVED ON THE EDC FOR HOW LONG? SIX YEARS. SIX YEARS.

AND WERE THE CHAIR.

RIGHT. AND THEN YOU'VE SERVED ON LOTS OF DIFFERENT BOARDS AND COMMITTEES.

SO PRETTY FAMILIAR WITH EVERYTHING.

DO YOU CAN YOU TELL ME, DID THE RANGE KNOW THAT THE 750,000 WAS NOT APPROVED BY THE COUNCIL, THAT IT WASN'T IN THE BUDGET? LET'S SEE. I WASN'T ON I WASN'T ON THE BOARD AT THE TIME.

I HAD NO INPUT ON THE BUDGET OR WHAT DID THE RANGE KNOW THAT THAT WOULD YOU BE WILLING TO JUST SPEAK TO THE CONVERSATION OF HOW DID WE GET FROM 100,000 WHO HAD THE IDEA OF, WELL, LET'S CHARGE THIS MEMBER 250 AND THEN LET'S ADVANCE IT THREE YEARS IN A ROW.

WHOSE IDEA WAS THAT? ALL I CAN SAY IS THAT THAT'S THE EDC BECAUSE I WAS NOT INVOLVED IN THAT CONVERSATION.

OKAY. SO THAT GOES BACK TO OUR SUBCOMMITTEE BUDGET SUBCOMMITTEE OF THE TWO MEMBERS.

SO THERE WAS NO DIRECTION.

SO I GUESS I'M LOST IN WHO MADE THE ASK, HOW DID THE RAIN ASK OF THE EDC? WHAT DID YOU ASK FOR? I ASKED FOR A MEMBERSHIP, A LEGACY MEMBERSHIP OF 250,000, AND I ASKED IF THERE WAS A POSSIBILITY THAT WE MIGHT HAVE ENOUGH IN THE MEMBERSHIP TO BE ABLE TO START THIS, AND THAT WAS MEMBERSHIP THAT IN RETURN WOULD BE THREE YEARS OF MEMBERSHIP.

OKAY. SO YOU ASKED FOR THE 250, BUT YOU NEEDED THE 750.

I DID NOT HAVE A SPECIFIC NUMBER.

YOU DIDN'T KNOW YOU NEEDED THE 750.

SO YOU DIDN'T ASK FOR THE 750? TO TELL YOU THE TRUTH, I DON'T KNOW.

ALL I REMEMBER IS THAT I SAID, YOU KNOW, WE HAVE THE MEMBERSHIP LEVEL OF $250,000.

AND THE DISCUSSION WENT TO, YOU KNOW, WE NEED MORE.

WE NEED TO DO SOME FUNDRAISING.

AND WE STARTED FUNDRAISING AT THAT TIME.

BUT WE WANTED TO SET IT UP AND DO IT AS QUICKLY AS WE POSSIBLY COULD SO THAT WE COULD FUNDRAISE, BECAUSE UNLESS WE HAD SOMETHING TO START WITH, WE HAD NOTHING TO FUNDRAISE WITH. CORRECT.

OKAY. SO YOU MAY NOT HAVE KNOWN THAT THE 750 WASN'T APPROVED.

AND YOU DIDN'T ASK FOR THE 750? YOU ASKED FOR THE 250.

WE WE WOULD HAVE SOMEHOW OFFERED THE 750 BECAUSE WE KNEW THAT THE ENTITY NEEDED ADDITIONAL FUNDING.

YOU PROBABLY NEEDED 1 MILLION OR $2 MILLION.

YOU PROBABLY DIDN'T JUST NEED THE 750.

YOU KNOW, WE HAVE TO BE GOOD STEWARDS OF WHAT WE BRING IN ALSO.

WE'RE A NONPROFIT ORGANIZATION THERE.

YOU KNOW, WE WE ARE WE ARE A PUBLIC TRUST.

SO WE HAVE TO BE VERY OPEN ABOUT HOW WE BRING IN MONEY AND WHAT WE DO WITH IT.

THERE IS NO ONE, NO ONE IN THIS ORGANIZATION THAT IS GETTING ANY KIND OF RENUMERATION FOR THIS WORK.

RIGHT. AND I THINK ESPECIALLY ON THE FRONT END, YOU KNOW, IT'S ESPECIALLY HEAVY LIFTING.

DO YOU GUYS CURRENTLY SEND A MEMBERSHIP INVOICE A RECEIPT OF PAYMENT.

HOW DO YOU WHAT DID YOU SEND, SAY, TEXAS TECH FOR THEIR BUSINESSES USUALLY REQUIRE THAT FOR THEIR RECORDS.

AND YES, WE DO.

SO YOU DO HAVE A PROCESS.

AND I THINK I DID SEE THAT DOCUMENT COME TO MY PHONE.

THERE WAS A RANGE RECEIPT FOR MEMBERSHIP DUES.

BUT WE ACTUALLY HAD FUNDED THE, THE AMARILLO GLOBAL FOOD HUB.

OKAY. RIGHT. AND I'M NOT SURE WHICH ONE IS THE C6 OR THE C7.

YOU YOU WERE IT WAS A IT WAS A MEMBERSHIP DUE ACCORDING TO MEMBERSHIP DUES.

BUT THAT'S THE C6.

THAT'S THE MEMBERSHIP ORGANIZATION.

YOU DIDN'T GO THROUGH THE FOUNDATION FOR THIS.

WE DIDN'T PAY THE CORRECT ENTITY OR WE DID PAY THE.

NO, YOU DID OKAY. YOU WERE REQUESTED TO BE A MEMBER, OKAY, A FOUNDING MEMBER.

AND THAT'S WHAT YOU PAID INTO WAS THE MEMBERSHIP.

THE 500 1C3 IS A FOUNDATION.

IT'S FOR THOSE WHO WE'VE HAD PEOPLE WHO SAY, WELL, I DON'T WANT TO BE A MEMBER, BUT I'LL, I WANT TO FUND.

SO THAT GOES. BUT THE 500 AND 1C3 WAS THE AMARILLO GLOBAL FOOD HUB.

THE 500 AND 1C6 WAS THE RANGE.

NO. OKAY, I APOLOGIZE.

IT'S ALL THE AMARILLO GLOBAL FOOD HUB.

THE 500 AND 1C6 IS THE RANGE WHICH IS THE AMARILLO GLOBAL FOOD HUB.

[02:10:01]

IT'S THE SAME THING. IT'S JUST A BRAND.

THE RANGE IS A BRAND OF THE ALMOST LIKE JUST A DBA.

LIKE YOU SAID, YOU JUST DOING BUSINESS AS YOU.

IT'S AS SIMPLE AS A NAME CHANGE.

SO YOUR C3 AND YOUR C6 WERE SET UP SAME TIME WHENEVER THE FUNDING WAS, WAS MADE.

OKAY. CORRECT.

AND THE C3 IS THE RANGE FOUNDATION OKAY? I THINK PROBABLY FOR ME.

WE DON'T KNOW WHERE THE MONEY WENT.

SO YOU'RE DOING A GOOD JOB OF TELLING US, HEY, WE'RE SPENDING THE MONEY TO TRY TO GET THESE GRANTS AND TRY TO GET ADDITIONAL FUNDING BACK HERE TO FUND THIS ENGINE THAT'S GOING TO, YOU KNOW, EVENTUALLY FILTER INTO, YOU KNOW, ECONOMIC GROWTH IN THE COMMUNITY.

I CAN APPRECIATE THAT.

HOW MUCH ARE HOW MUCH IS THE RANGE? I'M NOT GOING TO ASK HOW MUCH MR. GARNER MAKES. I WANT TO KNOW HOW MUCH IS THE RANGE EXTENDING TO RUN ITSELF, LIKE, TELL ME THE FINANCIAL HEALTH OF OF THIS ENTITY THAT WE'VE INVESTED THREE QUARTERS OF $1 MILLION IN? MR. GARNER IS NOT TAKING A SALARY, OKAY, TO DO THIS AT THIS POINT.

HE STARTED OUT WITH HR AND A HRA, HIRED HIM TO BE ONE OF THE STAFF, FIVE MEMBERS, THE FIVE STAFF MEMBERS.

AND THEN WHEN WE DECIDED WE DIDN'T NEED HRA ANYMORE, WE COULD GO FORWARD WITHOUT THEIR CONSULTING.

AND BECAUSE WE KNEW WHAT WE NEEDED TO DO, BY THAT TIME WE HAD THE UNIVERSITIES ON BOARD.

WE HAD THE 16 MEMBER LEADERSHIP TEAM PUT TOGETHER, AND WE KNEW WE COULD GO FORWARD AND WHAT WE HAD TO DO AT THAT POINT, HE REMAINED AS EXECUTIVE DIRECTOR AND HE HAS NOT TAKEN A SALARY SINCE.

WEST TEXAS A&M UNIVERSITY SUPPORTS OUR SECOND STAFF MEMBER.

THAT'S ONE OF THE THINGS THAT THEY DO AS A MEMBER.

AND THAT'S THE ONLY TWO STAFF MEMBERS.

WE HAVE OPERATIONS, WE HAVE AN OFFICE, BUT IT'S VERY SMALL.

WE DON'T HAVE A RESEARCH PARK HERE LIKE OTHER AREAS DO.

BUT WE WERE ADVISED BY HR, AND BECAUSE WE'RE INDUSTRY LED NOT TO HAVE A RESEARCH PARK BECAUSE WE'RE NOT GOING TO BUILD BUILDINGS, WE'RE DOING COLLABORATIONS AND PARTNERSHIPS AND, AND DISCOVERY AND INNOVATION.

SO WE HAVE A SMALL OFFICE ON POLK STREET AND THAT WAS FUNDED BY THE MEMBERSHIP MONEY.

AND THAT'S REALLY ALL WE'VE GOT.

THE REST OF IT IS SO AS FAR AS LIKE SPENDING, I MEAN, NO, $250,000 A YEAR.

NO, NO OVERHEAD LIKE THAT.

YOU HAVE A VERY SMALL OVERHEAD.

YEAH, I WOULD SAY. YEAH, RIGHT.

OKAY. AND AND THE INTENTION IS IS GOOD.

THE INTENTION IS FOR THE COMMUNITY AND TO HAVE ECONOMIC GROWTH AND, YOU KNOW, BE THE BE THE HUB THAT GATHERS THE RESOURCES THAT ARE ALREADY HERE.

NOW, I DISAGREE WITH THE METHANE, BUT OUTSIDE OF THAT YOU KNOW, WE WOULD HOPE THAT YOU WOULD CONTINUE IN, IN DOING A GOOD JOB IN BRINGING THAT ROI. WHAT WHAT WE HAVE AND WHAT WE'RE DEALING WITH IS WE'RE A FOUNDING MEMBER.

IS THAT RIGHT? SO, SEE, WE WE WERE NOT NOTIFIED OF THAT AS COUNCIL WHEN I WAS PLACED ONE.

I WASN'T NOTIFIED THAT THAT MY VOTE WAS CHANGED FROM 100,000 TO THE 250 AND THEN ADVANCED THREE YEARS.

THESE GENTLEMEN WEREN'T WEREN'T NOTIFIED THAT THEY WEREN'T ALLOWED TO VOTE.

CURRENTLY AS ELECTED REPRESENTATIVES, THAT THEY DON'T HAVE THE OPPORTUNITY TO VOTE ON THOSE EXPENDITURES.

SO I THINK THIS IS THE PROBLEM THAT WE HAVE, AND WE'VE TRIED TO KEEP THIS AS A PROBLEM THAT WE HAVE WITH OUR EDC AND IN THE WAY THAT WE HAVE SEEN THAT THERE ARE SOME LAX POLICIES OR SOME MISSING POLICIES OR WHATEVER.

WE'VE REALLY TRIED NOT TO FOCUS ON THE RANGE.

IT'S BEEN IT'S BEEN DONE IN A WAY WHERE I THINK EVERYBODY IN THE ROOM WISHES YOU YOU GUYS HAD DONE IT DIFFERENT.

I WANT TO SAY WE HAVEN'T DONE ANY OF THIS.

WE ARE THE OVERSIGHT BODY THAT IS REQUIRED AND COMPELLED UNDER UNDER THE LAW TO HOLD THIS ACCOUNTABLE.

AND WE ALL WANT TO RESTORE THAT CONFIDENCE TO OUR EDC AND NOT DO DAMAGE TO THE RANGE.

I HOPE YOU UNDERSTAND THE INTENTION OF THIS COUNCIL IS NOT TO DAMAGE THE RANGE AS AN ENTITY OR BRING QUESTIONS ABOUT THAT, BUT TO ASK THE RIGHT QUESTIONS OF IT'S ABNORMAL. IT'S AN ANOMALY FOR OUR EDC TO FUND SOMETHING THREE YEARS IN ADVANCE.

THAT WAS A STARTUP.

IT'S $750,000.

IT'S A LOT OF MONEY.

IT SHOULD HAVE COME BACK TO COUNCIL.

IT DIDN'T. AND THEN WE'VE SAID THE WHOLE TIME, LIKE, WHATEVER THE MEASURE IS THAT NEEDS TO BE TAKEN, WE WANT TO CORRECT THIS.

AND SO YOU BEING WILLING TO COME IN HERE AND WE DIDN'T ASK YOU TO BE HERE.

NO. AND SO WE REALLY APPRECIATE THAT WE HAVE NOT HAD THE OPPORTUNITY TO REACH OUT AND, AND SAY, WOULD YOU COME AND WOULD YOU EXPLAIN IN THE OVERSIGHT CAPACITY THAT WE HAVE, WE ARE VERY LIMITED IN, IN WHAT COULD LOOK LIKE US HAVING CONVERSATIONS BEHIND THE SCENES TO PREVENT THE, THE, THE RIGHT CONVERSATIONS THAT NEED TO HAVE IN THE PUBLIC.

SO I, I'VE ALWAYS LOOKED AT YOU AS A TRUE PROFESSIONAL.

[02:15:02]

YOU YOU ARE GIFTED IN A LOT OF GOOD WAYS, AND YOU CAN SPEAK AND DRAW PEOPLE THAT FOLLOW YOU.

AND, AND YOU'RE A LEADER AND YOU HAVE SOME GOOD LEADERSHIP SKILLS.

AND SO WE APPRECIATE THAT.

AND, AND SO IN TRYING TO BE TOO CAUTIOUS ON THIS DEAL, I THINK IT'S ENDED UP WHERE NOW WE HAVE MORE OF A RELATIONAL ISSUE AT THE DINNER TABLE ON THE EDC SIDE, WHICH I THINK WE'RE GOING TO DEAL WITH NEXT.

BEFORE WE SO GRACIOUSLY THANK YOU ONE MORE TIME FOR BEING HERE.

DO YOU DO WE HAVE ANYTHING ELSE? COUNCIL FOR MRS STREET.

THANK YOU, MR. STREET.

THANK YOU. ALL RIGHT.

I'M HAPPY TO ANSWER ANY QUESTIONS IN THE FUTURE.

ALSO, YOU KNOW, THE ONLY OTHER THING THAT I WOULD ASK IS IF YOU HAVE ANY GENERAL LEDGER THAT YOU'D BE WILLING TO OFFER.

THE WAY THAT YOU'RE SAYING EVERYTHING SOUNDS REALLY GOOD.

IF WE CAN PUT THAT IN THE HANDS OF THE PUBLIC OF, YOU KNOW, HERE, HERE'S HOW HEALTHY WE ARE.

HERE'S HERE'S THE THE EGGS THAT WE HAVE IN THE INCUBATOR.

HERE'S WHAT WE'RE DOING.

AND, AND EVEN THE FACT THAT, YOU KNOW, MR. GARNER DOESN'T GET A SALARY.

YOU KNOW, THOSE ARE THOSE ARE THINGS THAT I THINK COULD BE HELPFUL FOR THE RANGE IF YOU CHOOSE NOT TO DO THAT.

I TOTALLY UNDERSTAND.

IT'S NOT A IT'S NOT A REQUEST FROM COUNCIL.

IT'S JUST AN IDEA OR A THOUGHT.

I WOULD BE HAPPY TO DO THAT IF YOU'D GIVE ME.

GIVE ME SOME DIRECTION ON EXACTLY WHAT YOU WOULD LIKE TO SEE.

BECAUSE AS A AS A 500 AND 1C6, IT'S NOT SOMETHING THAT WE, YOU KNOW, JUST LIKE THE REALTORS ASSOCIATION, THEY DON'T PUBLICIZE THEIR LEDGERS.

WELL, I THINK I'M HAPPY TO GIVE IF WE COULD SEE THE TOTAL NUMBER OF MEMBERS, THE AMOUNTS THAT THE MEMBERS PAID WHEN THEY PAID IT.

YOU KNOW, HOW HEAVY WAS THE INVESTMENT THAT WE MADE? $750,000. A LOT OF MONEY, BUT $750,000 MAY AS WELL BE $75 MILLION IF YOU DON'T HAVE A DOLLAR.

AND SO ARE WE THE FOUNDING MEMBER OR ARE WE A FOUNDING MEMBER? DID DID THIS START BECAUSE OF THE EDC OR DID THIS START BECAUSE OF THE 16 MEMBER GROUP AND THE OTHER RESOURCES THAT ARE HERE? AND THEN IF IT WASN'T DONE CORRECTLY, IS THERE A WAY TO CORRECT IT? I THINK WE ALSO HAVE TO LOOK AT THE SEMANTICS OF THIS IS A MEMBERSHIP.

IT'S NOT IT'S NOT A GIFT.

THE $750,000 WAS MEMBERSHIP, NOT A GIFT.

SO LET'S LOOK AT HOW THAT CAN BE GIVEN TO YOU IN A WAY THAT YOU ARE COMFORTABLE WITH, IN THE WAY THAT.

YEAH. AND I'M I'M AGREEABLE TO HAVE A MORE CLARIFYING CONVERSATION WITH THAT SO THAT WHAT I'M ASKING FOR IS SPECIFIC.

THANK YOU MA'AM. REALLY APPRECIATE YOUR TIME TODAY.

THANK YOU. COUNCIL.

CAN WE TAKE A 15 MINUTE RECESS? WE'LL COME RIGHT BACK FOR ITEM 70.

WE'RE DONE WITH ITEM 70.

I'M HOPING TO MOVE THROUGH ITEM 70 EFFICIENTLY.

[7.E. Numerous topics related to AEDC, including bylaws and articles of incorporation, development, infrastructure, land acquisition, incentives, expenditures, and other matters related to oversight, direction, and plans for economic development, as well as general issues and matters related to the current and future needs of and expectations for the AEDC]

AND AND NOT NOT PERSONALLY.

SO I DON'T KNOW IF YOU GUYS KNOW THIS, BUT, LIKE, I GET I GET SOME CRITICISM.

AND SO IT'S A COMMON THING TO BE CRITICIZED ON THE RADIO AND TO HAVE A GUY ASK YOU, HOW DO YOU DEAL WITH THE CRITICISM? AND I SAID IN AN INTERVIEW THIS LAST WEEK, I SAID, YOU KNOW, I AM TOTALLY FINE WITH THE CRITICISM OF POLICY.

LIKE, SO YOU CRITICIZE MY POLICIES ALL YOU WANT TO.

I THINK SEVEN IS BETTER THAN FIVE.

THERE'S PLENTY OF PEOPLE THAT THINK I'M CRAZY TO TRY TO DO THAT AND THAT I'M THAT IT NEEDS TO STAY.

FIVE THAT IS A GREAT DEBATE AND BE AS CRITICAL OF THAT AS YOU WANT.

BUT THEN CRITICIZING THE PERSON IS WHERE I TRY TO STOP, YOU KNOW.

SO JUST SETTING THE ATMOSPHERE IN HERE FOR I HOPE YOU GUYS CAN HEAR THERE'S SOME CRITICISM COMING.

AND I TOOK SOME CRITICISM YESTERDAY.

I THINK THERE WAS SOME CRITICISM FROM YOUR BOARD YESTERDAY TOWARDS US.

AND I GET IT AND I UNDERSTAND IT.