[00:00:06] THIS REGULARLY SCHEDULED BUSINESS MEETING FOR THE CITY COUNCIL. [INVOCATION] DO WE HAVE IT? YES, WE DO. REVEREND MOORE. THERE YOU ARE RIGHT THERE. JOIN US. WALK TO THE PODIUM, PLEASE, SIR. WE HAVE REVEREND HERMAN MOORE HERE WITH US TODAY TO SAY OUR INVOCATION. THANK YOU FOR BEING HERE. LET US PRAY, FATHER, FIRST OF ALL, WE COME THANKING YOU FOR BEING THE GOD FATHER AND SAVIOR THAT YOU ARE. THANK YOU SO MUCH FOR YOUR LORD AND SON, JESUS CHRIST. WE THANK YOU FOR THIS COUNCIL AND SAY A SPECIAL PRAYER FOR OUR MAYOR AND HER FAMILY. AND THANK YOU FOR THE STRENGTH YOU'VE GIVEN HER. HELP THEM TO FOCUS ON YOUR GREAT AND PRECIOUS PROMISES, CONTINUE TO STRENGTHEN THEM AND KEEP THEM AS ONLY YOU KNOW HOW. LET ME THANK YOU FOR THE THINGS THAT YOU'VE BLESSED THIS COUNCIL TO ALREADY HAVE DONE. AND WE THANK YOU FOR THE VISION THAT YOU'VE GIVEN THEM MOVING FORWARD. THAT VISION THAT THEY HAVE THAT LOOKS TO THE BETTERMENT OF ALL OF US. [INAUDIBLE] GIVE THEM THE PERSEVERANCE AND THE ENDURANCE TO CONTINUE ON NO MATTER WHAT GOD AND GOVERN THEM AND KEEP THEM. AND WE PRAY THAT WHAT WE'RE DOING IS PLEASING IN YOUR SIGHT. IN JESUS NAME. WE PRAY AND THANK YOU, AMEN. THANK YOU, REVEREND MOORE. WE APPRECIATE THAT YOU'RE JOINING US ON THE PLEDGE OF ALLEGIANCE, PLEASE. OK. ITEM 1A ON THE AGENDA IS A CHANCE FOR THE COUNCIL TO ASK QUESTIONS ABOUT ANYTHING. [A. Review agenda items for regular meeting and attachments;] WE DON'T HAVE ANY ATTACHMENTS TODAY, COUNCIL. BUT DID YOU HAVE ANY QUESTIONS ABOUT AGENDA ITEMS BEFORE WE GET DOWN TO THEM? [B. Quarterly Budget Update;] OK. MOVING ON TO ITEM 1 B THEN IS THE QUARTERLY REPORT ON THE BUDGET. AND I WILL SAY COUNCIL THAT I HAVE A FAMILY COMMITMENT THIS AFTERNOON. AND SO I'M HOPING TO GET THROUGH ITEMS 1 B AND 1 C, AND THEN I'LL BE PASSING THE GAVEL DOWN TO THE MAYOR PRO TEM TO FINISH THE MEETING WHILE I GO TO THE ONE ACT PLAY CONTEST FOR AMARILLO HIGH SCHOOL. SO, OK, MR. CITY MANAGER. MATT [INAUDIBLE] IS HERE TO GIVE US THE QUARTERLY BUDGET REPORT. YES, SIR. GOOD AFTERNOON, MAYOR. COUNCIL, WE'RE GONNA GO OVER YOUR FIRST QUARTER BUDGET FOR THE FISCAL YEAR, 19-20 FISCAL YEAR W E JUST STARTED. THIS IS THE QUARTER THAT ENDED 12/31, 2019. FIRST, WE'RE GOING TO LOOK AT YOUR GENERAL FUND REVENUE BUDGET. WE BUDGETED 57.8 MILLION AND WE CAME IN AT 58.3 MILLION. SO WE ABOUT HALF A MILLION OVER BUDGET FOR THE QUARTER ON OUR REVENUE. THE NEXT SLIDE IS GOING TO GIVE YOU KIND OF A BETTER LOOK AT WHAT'S CAUSING US, WHAT'S CAUSING THOSE BUDGET VARIANCES. THESE ARE THE VARIANCES FOR THE FIRST QUARTER. AS YOU CAN SEE, OUR PROPERTY TAX CAME IN ABOUT A MILLION OVER. AND THIS IS KIND OF A TIMING THING. PROPERTY TAX BILLS ARE DUE JANUARY 31 ST. SO THIS IS THE TIME OF YEAR WE GET MOST OF OUR PROPERTY TAX IN THROUGH JANUARY. WE'VE RECEIVED 90 PERCENT OF OUR BUDGET. SO WE'RE STILL DOING PRETTY GOOD ON THE PROPERTY TAX. ON SALES TAX, YOU CAN SEE WERE SLIGHTLY BELOW BUDGET, ABOUT 1 PERCENT BELOW BUDGET FOR THE FIRST QUARTER WE SAW WE'VE SEEN THAT KIND OF FLIP THROUGH FEBRUARY. FEBRUARY WAS A HIGH MONTH. WE HAD FOURTEEN POINT EIGHT PERCENT MORE SALES TAX IN FEBRUARY THAN THE PRIOR YEAR. AND THROUGH FEBRUARY WE'RE UP ABOUT 2 PERCENT OVER BUDGET. ON HOTEL TAX, WE'RE SLIGHTLY DOWN. WE'RE DOWN ABOUT 3 PERCENT FROM WHAT WE THOUGHT WE'D BE ON OUR BUDGET. BUT THESE ARE KIND OF OUR SLOWER MONTHS FOR HOTEL TAXES. THIS SUMMER, IT'LL KIND OF IT'LL GO BACK UP IN THIS YEAR. WE DID BUDGET 3 PERCENT MORE FOR HOTEL TAX THAN WE BUDGET IN THE PRIOR BUDGET. SO ALL THAT TOGETHER IS KIND OF COMING IN A LITTLE LOWER NOW ON THE GROSS HOTEL TAX. THE NEXT ONE IS OUR FRANCHISED FEES, OUR [INAUDIBLE] BUSINESS TAX. YOU CAN SEE WE'RE SLIGHTLY BELOW THERE. WE DID RESET A LOT OF THESE THIS YEAR. SO WE THE ONLY ONE WE'RE SEEING DOWN RIGHT NOW IN ANY MEANINGFUL WAY IS THE ELECTRICITY FRANCHISE THAT'S PRETTY MUCH DRIVING THAT WHOLE VARIANCE THAT WILL NEGATIVE VARIANCE. THIS IS THE SLOWER TIME OF YEAR FOR ELECTRICITY , WHEN YOU'RE GONNA BE COMING INTO THE SUMMER WHERE IT'S MORE WARM AND WE EXPECT MORE ELECTRICITY USAGE, FUEL COSTS HAVE ALSO BEEN LOW. SO ALL THAT KIND OF TOGETHER'S KIND OF KEPT THAT ELECTRICITY A LITTLE BELOW WHERE WE THOUGHT IT'D BE THE NEXT ONE'S LICENSE AND PERMITS THESE ARE YOUR B UILDING SAFETY AND ENVIRONMENTAL HEALTH TYPE FEES, THEY'RE COMING IN RIGHT OUT BUDGET JUST SLIGHTLY BELOW THE NEXT ONES. CHARGES FOR SERVICES WOULD BE YOUR CULTURE AND RECREATION, YOUR PARKS, YOUR LIBRARY, CIVIC CENTER AND YOUR SANITATION SALES. AND YOU SEE THAT'S COMING IN STRONG OVER BUDGET BY ONE HUNDRED THIRTY SEVEN THOUSAND IN THE LAST CATEGORY H ERE IS FINES. IT'S COMING IN RIGHT AT BUDGET. THIS IS YOUR COURT FEES AND STUFF LIKE THAT. SO ALL IN ALL, WE'RE STILL OVER BUDGET BY ABOUT HALF A MILLION FOR THE QUARTER. ANY QUESTIONS THERE? OKAY. WE'LL MOVE ON TO THE GENERAL FUND EXPENSES FOR THE FIRST QUARTER. [00:05:04] WE BUDGETED FORTY SIX POINT SEVEN MILLION. THE ACTUALS CAME IN UNDER AT FORTY FIVE MILLION. SO WE HAD A 1.7 MILLION VARIANCE TO THE GOOD. AND OVERALL, WITH OUR COMING IN OVER ON OUR REVENUE IN UNDER ON OUR EXPENSES WERE ABOUT 2.2 MILLION TO THE GOOD THROUGH THE FIRST QUARTER. ANY QUESTIONS ON GENERAL FUND REVENUE EXPENSE? WE'RE GOING TO GO INTO MORE DETAILS ON SOME THE MAJOR CATEGORIES, BUT ANY QUESTIONS? OKAY. DO YOU THINK THOSE EXPENSES A RE THOSE TIMING, MATT? I MEAN. YES, SOME OF THOSE TIMING. I MEAN, MORE OF OUR PARKS AND LOT MORE STUFF HAPPENS IN THE SUMMER. EXPENSE WISE, OUR ELECTRICITY COSTS GO UP OURSELVES. WE HAVE MORE STUFF GOING ON IN THE PARKS, MORE MAINTENANCE, MORE STREET WORK, MORE PRETTY MUCH MORE GOES ON IN THE SUMMER. SO. SO I GUESS MY BOTTOM LINE QUESTION IS WE DON'T NECESSARILY FEEL LIKE WE'RE $2.7 MILLION AHEAD. IT'S JUST BASED ON THE TIMING FOR THE FIRST SOME OF THAT IS TIMING, BUT THEN SOME OF IT IS ALSO WHERE WE HAVE UNFILLED POSITIONS. ONE OF THEM, FOR EXAMPLE, IS THE FIREFIGHTER POSITIONS THAT YOU ALL ADDED. WE DID NOT FILL ALL OF THAT. SO SOME OF THAT IS REALIZED SAVING. WHEN WE GET IN SIX MONTHS INTO, IT WILL HAVE A BETTER FEEL FOR YOU. OKAY. THANK YOU. ANY OTHER QUESTIONS? WE'RE GOING TO MOVE ON TO SALES TAX. THIS IS NOT A NEW GRAPH. WE SAW THIS IN THE LAST PRESENTATION. THIS IS THE 10-YEAR HISTORY AND WE DON'T HAVE THE CURRENT YEAR ON THERE YET BECAUSE IT'S NOT OVER. SO LET'S GO TO THE CURRENT YEAR INFORMATION. THIS IS THE FIRST QUARTER COLLECTIONS. YOU CAN SEE THAT THEY WERE UP 1. 24 PERCENT OVER THE PRIOR YEAR. BUT AS I SAID BEFORE, WHERE YOU WERE, ABOUT 1.2 PERCENT UNDER BUDGET. SO IT KIND OF EVENED OUT THERE. AND THAT WAS WE REALLY DID HAVE A 2.5 PERCENT INCREASE OVER THE PRIOR YEAR BUDGET. SO THAT'S KIND OF WHY WE'RE BELOW BUDGET RIGHT NOW. AND AS I SAID, GOING IN TO THE NEXT COUPLE OF MONTHS, WE'RE GOING TO SWING BACK TO BEING OVER BUDGET THROUGH FEBRUARY. WE ARE OVER BUDGET 2 PERCENT. I THINK ANDREW IS GOING TO GIVE A SALES TAX PRESENTATION AFTER THIS AND GO INTO SOME MORE DETAIL ON SALES TAX NUMBERS. THE NEXT SLIDE, THE SAME INFORMATION, JUST KIND OF IN A DIFFERENT VIEW, GIVES YOU THE NUMBERS INSTEAD OF HAVING A CHART. SO ANY QUESTIONS ON SALES TAX? OK. WE'LL MOVE ON TO OUR GROSS RECEIPTS BUSINESS TAX. THESE ARE FRANCHISE FEES. THIS IS A REMINDER OF WHERE WE CHARGE OUR FRANCHISE FEES. THEY'RE ON PUBLIC UTILITIES. AND IF YOU DO REMEMBER, WE DID HAVE A CHANGE OF THE TELEPHONE IN THE CABLE FRANCHISE FEES EFFECTIVE THIS FISCAL YEAR THAT CAUSED US TO REDUCE THE BUDGET THERE ABOUT FOUR HUNDRED THOUSAND. SO WE DID HAVE THAT CHANGE FOR THIS FISCAL YEAR. AND THIS NEXT GRAPH WILL SHOW YOU WHERE WE'RE COMING IN. AS I SAID, ELECTRIC UTILITY IS KIND OF DRIVING OUR IS PRETTY MUCH ALL OF IT'S MAKING UP OF OUR BEING BELOW BUDGET. IT'S ABOUT TWO HUNDRED TWENTY FOUR THOUSAND. SO ABOVE OUR TWO HUNDRED TWENTY SIX THOUSAND. SO WE'RE ABOUT FIVE PERCENT BELOW BUDGET. OUR GAS UTILITY AND OUR TELECOMMUNICATIONS UTILITY ARE BOTH COMING IN STRONG. AND AS I SAID, WE EXPECT THE ELECTRIC UTILITY TO KIND OF BOUNCE BACK PROBABLY HOPEFULLY IN THE SUMMER WHEN WE START HAVING MORE USAGE OF ELECTRICITY. AND I'LL GO TO THE NEXT SLIDE AND IT'S THE SAME INFORMATION JUST KIND OF IN A DIFFERENT FORMAT, SHOWS YOU THE NUMBERS INSTEAD OF A GRAPH. ANY QUESTION ON FRANCHISEES? I HAD A QUESTION ON ON THE CABLE TV. YES. SOME OF THE OTHER AREAS. IT IS SEASONAL. IT'S LIKE WITH YOUR YOUR WATER OR YOUR GAS ELECTRIC. BUT E XPLAIN TO ME A LITTLE BIT WHY WHY WE SEE A LITTLE BIT OF DECREASE IN CABLE TV. IT MEANS IT'S K IND OF BEEN A TREND T HE LAST COUPLE YEARS OUR CABLE TV REVENUES HAVE BEEN GOING DOWN AS MORE PEOPLE SWITCH OFF CABLE. SO WE IT'S KIND OF HARD TO SAY EXACTLY WHAT'S CAUSING THIS ONE. BUT I THINK IT'S JUST A GENERAL INDUSTRY WIDE KIND OF THING IS THAT THERE'S FEWER CABLE CUSTOMERS AND WE GET THAT ON ACTUAL CABLE TV. SO AS THEY LOSE SUBSCRIBERS, WE LOSE THAT. SO A LOT OF PEOPLE ARE STICKING WITH THE INTERNET SERVICE, BUT THEY'RE USING THE INTERNET SERVICE TO ACCESS WEB BASED CONTENT. AND SO YOU'RE ESTIMATES YOU ARE ALREADY ESTIMATING THAT DOWNWARD TREND. IT JUST DIPPED EVEN LOWER THAN WHAT YOU HAD BUDGETED. YES. OK. SO GOING FORWARD, THE TREND IS TO CONTINUE TO PROJECT THAT INCOME TO DECLINE. YEAH, IF THAT'S HOW WE CONTINUE TO SEE THAT, WELL, JUST YOUR YOUR BUDGETS. I THINK THAT WOULD BE WISE. YES. SAME WAY ON THE PHONES WE HAVE WE'RE ANTICIPATING A DECREASE WITH STATE LEGISLATION. AND AS YOU CAN SEE, THE DECREASE WASN'T QUITE AS MUCH AS WHAT WE EXPECTED. SO WE'RE SEEING THAT COMING IN SLIGHTLY HIGHER. ANY MORE QUESTIONS ON FRANCHISE FEES? OK, WE'LL MOVE ON TO A HOTEL OCCUPANCY TAX. THIS FIRST SLIDE YOU'VE SEEN BEFORE, IT'S THE 10-YEAR HISTORY, INCLUDING UP TO LAST FISCAL YEAR. THE NEXT SLIDE IS THE CURRENT YEAR COLLECTIONS AS YOU CAN SEE WE DID HAVE A [00:10:05] DECREASE AS COMPARED TO LAST YEAR. WE'RE DOWN ABOUT TWENTY SEVEN THOUSAND AND WE'RE DOWN 3 PERCENT FROM BUDGET. WE DID INCREASE THE BUDGET FOR THAT 3 PERCENT THIS YEAR. SO WE DIDN'T COME IN QUITE AS STRONG AS WE THOUGHT. IT IS GETTING A LITTLE BETTER THROUGH JANUARY. WE'RE ONLY DOWN 2 PERCENT, SO WE'RE KIND OF MAKING UP FOR THAT. AND THAT AGAIN IS A LITTLE CYCLICAL. MORE IN THE SUMMER WE'LL SEE HIGHER, HIGHER RECEIPTS FROM THE HOTEL TAX. SO WE EXPECT THAT TO GO UP. AND THEN HERE'S THE SAME INFORMATION JUST IN A DIFFERENT FORMAT. ANY QUESTIONS ON HOTEL TAX? IS THIS ALSO WHERE THE HOTEL PID WOULD SHOW UP LATER IF THAT GETS IMPLEMENTED, OR IS THAT A DIFFERENT SECTION ALTOGETHER? THOSE DOLLARS WOULD NEVER HIT OUR. SHOW UP ON OUR STATEMENTS. CORRECT, MICHELLE? THAT'S CORRECT. IT WOULD NOT BE CITY DOLLARS. WE DON'T COLLECT THOSE DOLLARS. THE PID WOULD COLLECT THOSE DOLLARS. AND WHAT WAS THE PERCENTAGE THAT THE STATE LEGISLATURE APPROVED? WHAT PERCENTAGE CAN HOTELS CHARGE FOR THAT? ANOTHER 2 PERCENT. THAT'S WHAT I'M REMEMBERING IS 2 PERCENT. AND THIS IS SIMILAR TO THE VENUE DISTRICT TAX DOLLARS. THEY DON'T SHOW UP ON THE CITY FINANCIALS. THEY HAVE THEIR OWN SEPARATE SET OF FINANCIALS. THANK YOU. ANYTHING ELSE ON HOT TAX? OK, WE'LL MOVE INTO SANITATION SALES. THIS IS, AGAIN, NOT A NEW GRAPH. THIS IS A SEVEN YEAR HISTORY SANITATION SALES. AS YOU SEE, THEY'RE PRETTY STABLE REVENUE SOURCE. FOR THE CURRENT YEAR. WE ARE OVER BUDGET BY $400000. SO WE'RE TO THE GOOD $400000 ABOUT EIGHT PERCENT OVER BUDGET. SO WE'RE SEEING STRONG PERFORMANCE AND THAT PERFORMANCE IS HOLDING THROUGH JANUARY. WE WERE STILL 7 PERCENT OVER BUDGET. SO WE'RE SEEING STRONG PERFORMANCE THIS YEAR IN OUR SANITATION SALES. ANY QUESTION ON THOSE? SO IS THAT SEASONAL? YOU THINK THAT'S GOING TO LEVEL OUT? OR YOU THINK WE'RE GOING TO END UP OVER? MOSTLY YOUR SANITATION SALES, YOU HAVE A NEW REVENUE THAT'S IN THERE THAT'S HELPING IT OUT FROM YOUR PERMIT FEES THAT WE JUST STARTED COLLECTING THIS YEAR. WE TYPICALLY SEE, THOUGH, FROM THE STANDPOINT OF SALES GOING UP MOSTLY AROUND THE SPRINGTIME WHEN WE START HAVING SOME MORE INCLEMENT WEATHER WITH STORMS, WITH TREES AND THINGS OF THAT SORT. WE DO ANTICIPATE US BEING GENERATING MORE REVENUE THAN WE HAVE IN THE PAST, THOUGH, WITH OUR PERMIT FEES BEING EFFECTIVE NOW. THANKS. ANY OTHER QUESTION ON SANITATION SALES? OK. MOVE ON TO WATER AND SEWER SALES. THESE FIRST TWO GRAPHS YOU'VE AGAIN SEEN BEFORE, THESE ARE THE TRENDS. THE FIRST ONE IS SALES AGAINST CUSTOMERS. AND THE SECOND ONE IS THE MORE INTERESTING ONE TO ME IS THE SALES AGAINST PRECIPITATION. AS YOU CAN S EE, OUR WATER SALES ARE HIGHLY DEPENDENT ON PRECIPITATION. SO IN THE DRY YEARS, WE SEE MORE SALES AND IN THE WET YEARS WE SEE LESS. FOR THE CURRENT YEAR, FOR THE FIRST QUARTER, WE'RE COMING IN REALLY CLOSE TO BUDGET. WE'RE RIGHT OVER AT 1 PERCENT OVER. AND THIS, AGAIN, IS A SEASONAL THING. OUR FIRST QUARTER IS IN THE WINTER, USUALLY LESS WATER USAGE WHEN WE START GETTING INTO THE SPRING AND SUMMER, WHEN PEOPLE START IRRIGATING AND WATERING THEIR LAWNS AND USING MORE WATER. WE'LL SEE THOSE SALES INCREASE. BUT AS OF NOW, WE'RE RIGHT ON TRACK OF WHERE WE WANT TO BE. ANY QUESTIONS ON WATER AND SEWER? THIS IS A NEW SECTION WE'VE ADDED FOR THIS TIME WE ADD A DRAINAGE UTILITY INFORMATION FOR Y'ALL. THE FIRST GRAPH IS A FIVE YEAR HISTORY OF THE DRAINAGE ASSESSMENTS, THE REVENUE COMING IN ON THAT. AS YOU SEE, IT'S KIND OF BEEN SLOWLY INCREASING AS WE'VE GONE ALONG. HERE'S THE INFORMATION ON THE CURRENT YEAR. YOU CAN SEE THAT WE'RE OVER BUDGET BY ALMOST TWO HUNDRED THOUSAND DOLLARS, 13 PERCENT OVER WHICH SO OUR REVENUE IS COMING IN STRONGER THAN WE ANTICIPATED. BUT BUT IT'S TO THE GOOD. SO WE'RE HAPPY WITH THAT. ANY QUESTIONS ON DRAINAGE? THAT'S THE DRAINAGE FEE THAT'S COLLECTED ON WATER BILLS IS THAT RIGHT MATT? YES, MA'AM. AND WAS THERE NO ASSESSMENT IN 2017? I THINK MY YEARS GET OFF THERE. OK. YEAH, MY YEARS GET OFF, I THINK I'LL GET THAT FIXED. SORRY ABOUT THAT. ANY OTHER QUESTIONS? LAST SECTION WE'RE GOING TO LOOK AT IS HEALTH INSURANCE. FOR THE FIRST QUARTER, WE ARE 20 PERCENT OVERBUDGET. OUR CLAIMS COME IN HIGHER THAN WE EXPECTED. I THINK OUR HEALTH INSURANCE PLAN IS ON A CALENDAR YEAR BASIS. SO WE'RE STILL SEEING THE EFFECTS ON THOSE LARGE CLAIMS THAT WE TALKED ABOUT LAST FISCAL YEAR. THEY'RE STILL COMING THROUGH TO THIS FIRST QUARTER OF THE NEW FISCAL YEAR. [00:15:01] BUT AGAIN, WE'RE SEEING THE EVER INCREASING COST OF HEALTH CARE IMPACTING OUR BUDGETS. SO WE'RE TRYING TO BUDGET FOR THAT. BUT IT'S ALSO I MEAN, IT'S IT'S DIFFICULT TO BUDGET FOR BECAUSE IT KEEPS GOING UP AND WE KEEP SEEING THESE LARGE CLAIMS COME THROUGH. WE ARE GOING OUT FOR AN RFP THIS YEAR ON NEW HEALTH INSURANCE SERVICES AND WE SHOULD HAVE THAT NEW PLAN IN PLACE BY 1/1 OF 21. SO WE'RE HOPING TO GET SOME SAVINGS THERE. WE'RE GOING TO CONTINUE TO MONITOR THIS AND MAKE SURE THAT WE ADDRESS IT IN THE UPCOMING BUDGET CYCLE. SO WE ARE OVER BUDGET. BUT LOOKING THROUGH JANUARY, WE'RE DOWN TO JUST 13 PERCENT OF OUR BUDGETS TO 20 PERCENT OVER BUDGET GOING FORWARD. DURING THIS RFP THAT MATT REFERENCED, WE WILL BE BIDDING BOTH HEALTH INSURANCE AND PHARMACEUTICAL. SO COMBINED, THOSE TWO ARE MASSIVE, HAVE A MASSIVE IMPACT ON THE PERFORMANCE. YES. AND WE ANTICIPATE LATE MAY THAT TO HAVE A RECOMMENDATION FOR COUNCIL. THAT WOULD BE EFFECTIVE JANUARY 21. QUESTIONS. I HAVE A QUESTION BACK ACTUALLY ON THE DRAINAGE. MR. CITY MANAGER ON IF WE COULD GET A REPORT ON JUST AN OVERVIEW OF WHERE WE HAVE SOME OF THE MOST DIFFICULT DRAINAGE ISSUES IN THE CITY AND THE UPCOMING PROJECTS. THIS IS PART OF WHAT THAT ASSESSMENT IS FOR IS TO DEAL WITH THOSE AND TO TO SEE WHERE. AND I'M SURE WE'VE REVIEWED IT. BUT IF YOU DON'T MIND, TO JUST PULL THAT TOGETHER TO SEE KIND OF WHAT'S COMING UP IN THE SHORT TERM. SO THE DRAINAGE FEE THAT WE HAVE RIGHT NOW IS DESIGNED SPECIFICALLY TO ADDRESS A HANDFUL OF VERY, VERY FINITE AMOUNT OF SPECIFIED PROJECTS. IT DOES NOT ADDRESS OR ALLEVIATE FLOODING, FUNDING IN FLOODING, BUT IT DOES NOT ALLEVIATE ALL THE FLOODING CHALLENGES WE HAVE WITH OUR STREETS BEING USED AS DRAINAGE CHANNELS. BUT WE WILL DEFINITELY GIVE YOU A PRESENTATION ON WHAT OUR DRAINAGE FEE IS DESIGNED TO ADDRESS AND ALSO POINT OUT SOME NEEDED PROJECTS THAT ARE NOT FUNDED THROUGH OUR CURRENT DRAINAGE FEE. SOME OF THE MOST PRESSING OF THOSE NOW THAT WON'T BE AN EXHAUSTIVE LIST, BUT IT WILL BE SOME OF THE MOST TELLING OR PRESSING CHALLENGES THAT ARE NOT ADDRESSED THROUGH OUR CURRENT DRAINAGE FEE. BUT I THINK THE BIGGEST TAKEAWAY IS THE DRAINAGE FEE IS DESIGNED TO ADDRESS A FEW, A HANDFUL OF VERY SPECIFIC SIGNIFICANT DRAINAGE PROBLEMS. SO WE'LL POINT OUT BOTH WHAT WE'RE FUNDING AND WHAT WE'RE WHAT WHAT WE HAVE YET TO FUND THAT ARE THAT ARE STILL SERIOUS PROBLEMS. AND THAT WOULD BE GREAT. THANK YOU. MATT, CAN WE TALK ABOUT GO BACK TO THAT SLIDE ON HEALTH INSURANCE, PLEASE? THERE YOU GO. I'M NERVOUS THAT THAT CLAIMS NUMBER IS QUITE A LARGE PERCENTAGE OVER. SO WHAT? LET'S JUST TALK FOR A MINUTE ABOUT DOES THIS COME OUT OF GENERAL FUND DOLLARS? IT'S THE INTERNAL SERVICE FUND. SO YOUR HEALTH INSURANCE, THAT GENERAL FUND PAYS INTO THAT. SO YOU HAVE AN HEALTH INSURANCE FUND WITH A PRETTY HEALTHY RESERVE. SO IF WE DID HAVE A MILLION DOLLARS, IF IT STAYED THAT WAY THROUGH THE WHOLE YEAR, YOU HAVE RESERVES TO COVER THAT. AND LAST YEAR WE DID OUR ANALYSIS. WHAT WE SAW WAS OUR REGULAR CLAIMS THAT WERE NON LARGE CLAIMS WERE COMING IN FLAT FROM THE PRIOR YEAR WHERE WE SAW INCREASES. WE WERE EXPERIENCING SOME SIGNIFICANT LARGE CLAIMS. SO THAT'S EXACTLY WHERE INCREASES WE ARE JUST NOW CLOSING FEBRUARY. LET US GO BACK AND LOOK AT THE CLAIMS FOR FEBRUARY AND WE'LL GET AN UPDATE THROUGH FEBRUARY. DO YOU HAVE THAT INFORMATION? WE MET WITH OUR HEALTH CARE CONSULTANT AND LAST WEEK, I BELIEVE IN IT WAS LOOKING THROUGH JANUARY AND WHAT THEY WERE SEEING IN THE TREND THROUGH JANUARY WAS THAT OUR PHARMACEUTICAL COSTS WERE ACTUALLY DOWN OR ABOUT FLAT WITH WHERE THEY WERE FROM JANUARY OF 2019. THEY SAID THE WAY PHARMACEUTICALS WORK IS THOSE ARE ALMOST INSTANT COMING THROUGH FOR PAYMENT THROUGH THE PLAN WHERE THE HEALTH CARE CLAIMS KIND OF HAVE A LITTLE BIT OF A LAG. THEY SAID THAT THEY TREND VERY CLOSE TOGETHER. SO THEY SAID THAT WAS A GOOD SIGN THAT WE WERE SEEING THOSE PHARMACEUTICALS COMING IN F AIRLY FLAT TO WHERE WE WERE PAYING THOSE OUT BACK IN JANUARY OF 2019 SO EVEN THOUGH WE DID EXPERIENCE WHAT SEEMED TO BE A PRETTY LARGE INCREASE IN THAT FIRST QUARTER OF OUR FISCAL YEAR, THINGS WERE LOOKING MUCH BETTER AS OF JANUARY AND SEEMED TO BE STARTING OUT THE CALENDAR YEAR, WHICH IS THE PLAN YEAR FOR OUR HEALTH CARE PLAN. IT LOOKED LIKE IT WAS STARTING OFF ON TRACK FAIRLY SIMILAR TO THE YEAR BEFORE, SO THERE WEREN'T CONCERNS. THE BIGGEST CHALLENGE THIS PAST YEAR WERE, AS MICHELLE MENTIONED, AND IS MANAGING THOSE LARGE CLAIMS AND WE SAW A SIGNIFICANT AMOUNT OF OUR SPEND IN THOSE LARGE CLAIMS AND SAW SIGNIFICANTLY MORE THAN WHAT WE HAD IN PRIOR THE LAST TWO OR THREE YEARS. SO THERE'S RESERVES TO COVER THIS SHORTFALL. [00:20:03] YES. AND WE'RE GOING TO CONTINUE TO MONITOR IT. IF WE SEE THAT THAT IS GOING TO ROLL INTO THIS YEAR, THAT WE LOOK LIKE WE'RE GOING TO BE OVER WHAT WE BUDGETED, WE'RE GONNA ROLL THAT INTO YOUR BUDGET, INTO YOUR REVISED ESTIMATE NUMBER. AND AS WE DO YOUR PROJECTION FOR NEXT YEAR, WE'RE GOING TO HAVE TAKEN THAT INTO CONSIDERATION, MAKING SURE OUR RESERVES ARE STILL HEALTHY AND MAKING SURE OUR RATES ARE SET ACCORDING. SO THAT WOULD ENCOMPASS SORRY, [INAUDIBLE] THAT WOULD ENCOMPASS REPLENISHING THOSE RESERVES. RIGHT. AS WELL AS A LARGER NUMBER RECOGNIZING THIS TREND. YEAH. IF IT'S CONTINUING TO TREND UP YOUR BUDGET FOR NEXT YEAR WILL BE BASED ON A HIGHER RETURN. OKAY. [INAUDIBLE], DID YOU HAVE COMMENT? WELL, I WAS JUST GOING TO SAY, MICHELLE SAID WE HAVE A HEALTH RESERVE AND WE HAVE THE EXACT RECOMMENDED RESERVE THAT WE'RE SUPPOSED TO HAVE. IT'S JUST A BIG BUDGET LINE. SO THAT MEANS THAT WE HAVE A LOT OF MONEY PUT INTO RESERVE THERE TO BE ABLE TO COVER OVERAGES BECAUSE IT IS SUCH A BIG I MEAN, IT'S ALMOST A 20 MILLION DOLLAR LINE ITEM IN MOST YEARS. SO IT FLUCTUATES. YEAH, IT FLUCTUATES. BUT BUT IT'S DEFINITELY ONE OF THE BIGGEST THINGS THAT WE SPEND IN THE GENERAL FUND IS HEALTH INSURANCE AS WE GO INTO NEXT YEAR'S BUDGET AND PLAN FOR NEXT YEAR'S BUDGET IF WE HAVE DIPPED INTO THAT RESERVE AT THE END OF THE FISCAL YEAR. AND IT'S POSSIBLE THAT WE CAN HAVE THAT WE CAN RECOVER THROUGH THE LAST OF THE YEAR. I'M NOT HOLDING MY BREATH BECAUSE LARGE HEALTH INSURANCE CLAIMS ARE ABNORMAL, ESPECIALLY THE NUMBER THAT WE'VE HAD SO FAR. BUT WE WILL BUILD THE PRICING FOR HEALTH INSURANCE TO REIMBURSE OR REFILL THAT RESERVE FUND. AND THAT'S GOING TO TOUCH NOT ONLY THE CITY, BUT ALSO THE EMPLOYEES, BECAUSE THE EMPLOYEES HAVE A SHARE IN PAYING FOR THAT HEALTH INSURANCE FUND. AND ONE OTHER THING, AS A REMINDER, WE HAD GONE OVER THIS DURING THE AUDIT COMMITTEE PRESENTATION OF OUR FINANCIAL STATEMENTS ON SEPTEMBER 30TH. WE ACTUALLY ENDED LAST YEAR WITH BETTER RESERVES THAN WHAT WE HAD ANTICIPATED. THERE WAS AN ADJUSTMENT MADE RELATED TO A CHANGE IN AN ACCOUNTING ESTIMATE AND IT ACTUALLY WAS TO THE GOOD. AND SO WE WE WERE SITTING PRETTY GOOD WITH OUR RESERVES AT THE END OF THE YEAR BETTER THAN WHAT WE HAD ANTICIPATED DURING BUDGET TIME LAST YEAR. AND I KNOW THAT WE HAD TALKED ABOUT IN THAT RFP FOR INSURANCE WORKING IN A WELLNESS COMPONENT. THAT'S CORRECT. IT MIGHT NOT BE RELATED NECESSARILY TO THESE LARGER CLAIMS, BUT I JUST THINK, YOU KNOW, IF WE'RE LOOKING AT A TREND OF THIS INCREASING, THEN I THINK WELLNESS DOLLARS ARE WELL SPENT TOWARD SAVING US CLAIM DOLLARS AND MAKING US HEALTHIER. AND THAT IS PART OF THAT RFP THAT WE'RE GOING THROUGH. WE'VE INCLUDED THE WELLNESS AS SOMETHING WE'VE TALKED ABOUT. OUR FOCUS FOR THE LAST SEVERAL YEARS HAS BEEN ON THE ACTUAL INSURANCE NETWORK AND CLAIMS. BUT WE DO KNOW THAT UNLESS WE GET THAT WELLNESS PIECE IN, IT'S GOING TO BE MORE DIFFICULT TO ADJUST THOSE TRENDS. OK. AND JUST A REMINDER, YOU CAN SEE IT ON THE GRAPH HERE. 2016 IS WHEN THE CITY SWITCHED FROM THE CITY NEGOTIATING NETWORK TO THE AETNA CONTRACTING. YOU SEE, IT HAD A SIGNIFICANT CHANGE TO OUR CLAIMS AND EVEN THE 2015 IS STILL THE HIGH. AS FAR AS CLAIMS WERE CONCERNED, 2019, WE SAW A TREND UPWARD, BUT WE YET DID NOT REACH THE SAME LEVELS WHERE WE WERE IN 2015. OK, THANK YOU. Y'ALL HAVE ANY MORE QUESTIONS FOR NATT. JUST WHEN WE LOOK AT SOME OF THOSE PAST, IT WOULD BE INTERESTING TO LOOK AT THE THE TOTAL NUMBER OF CLAIMS. IF WE COULD GET A NUMBER ON THE NUMBER OF PEOPLE WE'RE COVERING ON THIS CHART OR AT LEAST HAVING. SO WE'RE LOOKING AT APPLES AND APPLES LIKE OUR COSTS GOING UP BECAUSE WE'RE COVERING MORE PEOPLE. OK. THAT WOULD BE GREAT. OK. WE'LL ADD THAT AND WE'LL DO THAT AND SEND THAT OUT TO COUNCIL ON FRIDAYS AS WELL. THANK YOU. GOOD. GOOD CHANGE. OK. ANY OTHER QUESTIONS? MR. CITY MANAGER, YOU HAVE ANYTHING FURTHER. NO MA'AM. OK. THANK YOU, MATT. [C. Sales Tax Update;] AT THIS TIME, WE'LL MOVE ON TO ITEM 1C A SALES TAX UPDATE, MR. CITY MANAGER, ANDREW FREEMAN. GOOD AFTERNOON. MAYOR, CITY COUNCIL. WE'RE GONNA TAKE A LITTLE BIT OF A DEEPER DOVE INTO OUR INDUSTRY DATA. AFTER THAT PRESENTATION TOUCHED ON OUR SALES TAX, JUST TO GIVE YOU A FEEL FOR HOW SOME OF OUR INDUSTRIES ARE PERFORMING IN THIS FIRST QUARTER. THIS IS A SNAPSHOT OF ALL OUR MAIN INDUSTRIES. THEIR LISTED ON THE LEFT HAND SIDE THERE. AND JUST AS A REMINDER, THIS IS AUGUST THROUGH OCTOBER ACTUAL SALES BECAUSE THERE IS A TWO MONTH DELAY WHEN WE ACTUALLY RECEIVED COLLECTIONS. SO JUST THINK OF THAT MINDSET AS FAR AS WHEN THE SPENDING OCCURRED. AND OF COURSE, WHAT YOU'RE SEEING IS THE OVERALL IS WE ARE UP ONE POINT TO FOUR PERCENT [00:25:02] COMPARED TO LAST YEAR. BUT LAST YEAR AT THIS TIME WE WERE AT 5.3 TOO. SO WE HAVE DECLINED A LITTLE BIT OVERALL. WE DIDN'T KEEP THAT SAME LEVEL. THERE WAS QUITE A BIT OF RED HERE. SO I WANTED TO GO AHEAD AND LOOK A LITTLE BIT INTO THE FUTURE. I WENT OUT AND LOOKED AT FEBRUARY FISCAL YEAR TO DATE. AND WHEN I LOOKED AT THOSE PERCENTAGES, YOU ACTUALLY SEE ALL THAT RED GO AWAY EXCEPT FOR AGRICULTURE IS THE ONLY ONE THAT'S STILL DECLINING. SO RETAIL CONTINUES TO MAINTAIN AROUND THE 3 PERCENT RANGE. GENERAL SERVICES COMES UP FROM THE NEGATIVE FOUR AND A HALF, UP 2.66. SO THEY'RE BACK ABOVE ZERO. FOOD GOES UP TO 3.44 PERCENT. PROFESSIONAL SERVICES GOES FROM A NEGATIVE TO ALMOST 3 PERCENT. AND REALLY SEEING THAT TREND CONTINUE AND LIKE MATT MATT MENTIONED PREVIOUSLY, WE DID SEE AN INCREASE OF OVER 14 PERCENT JUST FOR THE MONTH OF FEBRUARY. SO IT'LL BE INCHING ONCE WE GET TO THAT POINT TO SEE WHICH INDUSTRIES SAW THE BEST PERFORMANCE THERE. AND AS A REMINDER, RETAIL AND FOODS, KIND OF WHAT WE POINT OUT EACH TIME THAT OF OUR COLLECTIONS MAKES UP 57 PERCENT. SO THIS QUARTER WE COLLECTED 10.7 MILLION OF THE 14.6 MILLION OVERALL. SO THAT'S MAJOR, MAJOR CATEGORIES FOR US AS FAR AS OUR RETAIL COLLECTIONS AND SALES TAX COLLECTIONS. ON THIS NEXT SLIDE, WE GO A LITTLE DEEPER INTO SPECIFICALLY THAT RETAIL SUB INDUSTRY. THAT'S OUR MAIN, MAIN COMPONENT OF SALES TAX, BRINGING IN THE EIGHT AND A HALF MILLION. SO THIS TAKES A LOOK AT THE THE GENERAL CATEGORIES. GENERAL MERCHANDISE BEING OUR BIGGEST ONE IS STILL CONTINUE TO GROW AT 3.3 PERCENT COMPARED TO LAST YEAR. WE'RE ALSO SEEING QUITE A BIT OF INCREASE IN THE FOOD AND BEVERAGE STORES AT 14 PERCENT. WHAT I NOTICE IS MOST OF THAT CAME FOLLOW UP ON THIS NEXT SLIDE IN THE SPECIALTY FOOD CATEGORY, WHICH ALSO SOMETIMES CONTAINS CONCESSIONS AND THOSE RELATED FOOD SOURCES. AS FAR AS SALES TAX COLLECTIONS GO, ELECTRONICS AND APPLIANCES, WE CONTINUE TO SEE THAT DECLINE REGULARLY. AS FAR AS THOSE SALES, THAT'S ONE OF THOSE IT'S A TOUGH ONE TO COMPETE WITH ONLINE. SO THAT IS SOMETHING THAT CAN BE MOVED TO A DIFFERENT CATEGORY. BUT WE'RE NOT SEEING IN THIS CATEGORY AS MUCH SPORTING GOODS, HOBBY BOOK AND MUSIC STORES IS ALSO ANOTHER ONE THAT IN THE PAST HAD REALLY DECLINED QUITE A BIT. THIS TIME WE'RE SEEING A POSITIVE 3.42 PERCENT. BUT WHEN WE TAKE A LITTLE DEEPER LOOK, YOU'RE STILL SEEING DECLINES IN A SPECIFIC CATEGORY, WHICH I'LL TOUCH ON HERE IN A SECOND. NON STORE RETAILERS, THESE ARE THE ONLINE STORES THAT HAVE A PRESENCE IN TEXAS. SO IT'S NOT THE NEW REMOTE SELLERS, BUT IT'S THE AMAZONS AND THE LARGER ONES THAT HAVE DISTRIBUTION CENTERS OR STOREFRONTS IN TEXAS THAT WE'RE SEEING QUITE A BIT OF INCREASE, 18.86 PERCENT SPECIFICALLY THIS TIME. I WENT BACK LOOKING TO JANUARY 2018 IS WHEN WE START SEEING THE 10 TO 30 PERCENT INCREASES IN THAT CATEGORY ALONE. SO I THINK THAT'S WHEN THAT'S WHEN WE START GETTING A HARD LOOK FROM THE COMPTROLLER AS FAR AS THOSE THAT HAD THE NEXUS OR POINT OF SERVICE IN TEXAS. AND THAT'S WHEN WE REALLY STARTED TO SEE THAT INCREASE OFFICE SUPPLIES AND STATION AREAS AND TURNAROUND WAS NEGATIVE 4 PERCENT LAST YEAR. AT THIS TIME, IT'S UP A LITTLE OVER 5 PERCENT. SO THAT'S POSITIVE. WHEN WE TAKE A LOOK AT THIS NEXT SLIDE. THIS IS WHEN YOU CAN GET IN EVEN FURTHER INTO THESE CATEGORIES TO SEE HOW SOME ARE PERFORMING. JUST WANTED TO POINT OUT A COUPLE DEPARTMENT STORES, OF COURSE, IS OUR LARGEST AND IT'S CONTINUING TO GO UP A LITTLE OVER 3 PERCENT. FLORISTS CONTINUE TO STRUGGLE. THEY'D COME BACK LAST YEAR, AROUND THIS TIME ABOUT 9 PERCENT, BACK DOWN ABOUT 12 PERCENT. SO WE'RE SEEING THAT TREND CONTINUE. CLOTHING STORES IS ANOTHER ONE. IT WAS UP 4 PERCENT LAST YEAR AT THIS TIME, AND NOW IT'S DOWN ABOUT 4 PERCENT. AND THEN THERE'S THE SPECIALTY FOOD STORES I MENTIONED SEEING ONE HUNDRED TWENTY EIGHT PERCENT INCREASE FROM 43000 TO ALMOST 100000 COMING ONLINE. YES. ON THAT ONE. WITH THE CLOTHING STORES H AS THAT BEEN FROM WE HAD SOME STORES CLOSED OR THE THE STORES WE HAVE THEIR SALES ARE LESS? I THINK IT'S GOING TO BE A LITTLE BIT A LITTLE BIT OF BOTH. AND THEN SOME OF THESE IT'S TOUGH BECAUSE THIS IS A VERY SPECIFIC CLOTHING STORE, BUT A LOT OF THEM ARE UNDER THAT DEPARTMENT STORE CATEGORY. SO WAL-MART, DILLARD'S, THOSE PLACES AREN'T SHOWING UP IN CLOTHING STORES. SO IT'S MORE THE BOUTIQUES. SO I THINK IT COULD BE SOME OF THAT LESSER SALES OR MAYBE SOME SHIFTING TO OTHER PLACES ARE ONLINE. IN THE PAST WHEN WE HAVE SEEN LIKE A SIGNIFICANT DECREASE WE COULD TRACK IT BACK TO A PARTICULAR STORE THAT CLOSED DOWN. RIGHT. AND SO IT DIDN'T SOUND LIKE THIS TRACKS TO ANY THING, A SPECIFIC ACTIVITY LIKE [00:30:03] THAT. I COULD SPEND A LITTLE MORE TIME DIGGING INTO IT TO SEE IF I CAN PINPOINT IF IT WAS MAYBE A MISSING TAXPAYER, IF WE'VE HAD SOME TURNOVER. DIDN'T TAKE QUITE A DEEP DIUVE INTO THAT. AND I CAN RESERVE SIDE A LITTLE BIT FOR YOU AND SEE IF IT PINPOINTS A LITTLE FURTHER. WAS SEARS IN THE DEPARTMENT STORE. YES. SEARS WILL BE IN THE DEPARTMENT STORE. SO WE'RE NOT REALLY SEEING A MAJOR, MAJOR IMPACT FROM SEARS CLOSING, OF COURSE, SEARS OUTLET IS STILL OPEN AS WELL. SO THAT ONE THE WAY YOU SEE THESE, IF IT'S MULTIPLE SEARS, MULTIPLE WAL-MARTS, THEY'RE ALL UNDER THE SAME TAX COLLECTION. SO WE CAN'T BREAK IT DOWN BY STORE FRONT. IT'S JUST AN OVERALL AMOUNT. BUT WE CAN KIND OF SEE HOW THAT IMPACTS, ESPECIALLY SINCE ONE IS NOW CLOSED AND THE OTHER ONES OPEN. AS FAR AS THIS NEXT SLIDE. AGAIN, ELECTRONS AND APPLIANCE STORES CONTINUE TO DECLINE. I WANT TO POINT OUT THE THE BOOK PERIODICAL AND MUSIC STORES. THAT'S THE ONE THAT REALLY KIND OF HAD A BIG HIT WHEN HASTINGS CLOSED A FEW YEARS AGO. IT'S STILL A CONTINUE TO DECLINE. IT'S 7.93. I WENT BACK TO DECEMBER 2016. THAT ONE BROUGHT IN 150000 BACK THEN. JUST FOR COMPARISON, ON THE SPORTING GOODS HOBBY MUSIC STORES THAT BROUGHT IN TWO HUNDRED NINETY FIVE THOUSAND AND THAT'S NOW DOWN IN THE 250000 RANGE. AND THEN, OF COURSE, THE OTHER NON STORE RETAILERS IS A MAJOR GAIN THAT WE SEE BACK IN DECEMBER 2016. IT WAS SITTING AT TWO HUNDRED AND TWO THOUSAND. SO IT JUST CONTINUES TO GROW MONTH BY MONTH. I ALSO WANT TO TOUCH A LITTLE BIT ON THE FOOD SUB INDUSTRIES, RESTAURANTS IS, OF COURSE, THE MAJOR CONTRIBUTOR TO THE FOOD INDUSTRY. WE'RE STILL SEEING ABOUT A TWO POINT THIRTY FIVE PERCENT INCREASE AT THIS TIME. AND THEN WE DIG A LITTLE BIT DEEPER. NOW WE'RE STARTING TO SEE THE LIMITED SERVICE EATING PLACES REALLY OUT, OUT GAIN THE FULL SERVICE RESTAURANTS. THEY'RE SEEING AN INCREASE OF 4.10 PERCENT AND CONTINUE TO GROW. THEY AVERAGE ABOUT 4 PERCENT ON A REGULAR BASIS AS FAR AS THE GROWTH THEY'RE SEEING. AND THEN WE WE STILL SEE SOME REGULAR FLUCTUATION AS FAR AS THE CATERING, MOBILE FOOD SERVICES. I THINK AS PEOPLE ENTER AND EXIT THAT INDUSTRY AS FAR AS THOSE COLLECTIONS GO. AND THEN JUST AS A REMINDER, ONE MILLION IN COLLECTIONS EQUALS 50 MILLION IN SALES, JUST TO PUT THAT IN PERSPECTIVE. SO THAT'S 50 MILLION IN SALES THAT CONTRIBUTE TO THAT FIRST QUARTER OF FULL SERVICE RESTAURANTS, FOR EXAMPLE. AND THEN JUST A BRIEF REMOTE SELLER UPDATE. SO THIS IS A CHANGE THAT THE STATE AND THE COMPTROLLER M ADE TO GO INTO EFFECT OCTOBER 1ST, WHEN WE REPORTED IN DECEMBER THERE WERE FOURTEEN HUNDRED SEVENTY THREE FOR MOST SELLERS SIGNED UP. IT'S NOW UP TO OVER TWENTY TWO HUNDRED AND THEY USE A RATE OF 1.75 PERCENT FOR THOSE COLLECTIONS. SO THESE ARE REALLY FOR EVERYBODY OUTSIDE THE STATE THAT ARE SHIPPING AND DELIVERING TO AN ADDRESS IN TEXAS AND DON'T HAVE A PLACE OF BUSINESS IN TEXAS. SO THE SALES TAX OR CHARGE WHERE IT'S DELIVERED. SO THOSE STARTED COMING ON OCTOBER 1. SO THE FIRST RESULTS WE SAW WERE IN DECEMBER. AND I WANT TO SHOW ON THIS GRAPH, THE COLLECTIONS WE'VE BEEN SEEING DECEMBER TWENTY THOUSAND, JANUARY THIRTY THOUSAND AND FEBRUARY IS JUST OVER 50000. SO IN FEBRUARY, FOR EXAMPLE, THAT'S BASED ON 3 MILLION IN TAXABLE SALES. THE ONLY DOWNSIDE TO THE REMOTE SELLERS IS WE DON'T KNOW WHO THEY ARE. WE DON'T KNOW WHAT INDUSTRY THEY ARE. THEY JUST GET TO BASICALLY CUT A CHECK TO THE STATE TO DISTRIBUTE WHERE THEY NEED TO GO. BUT IF YOU LOOK AT IF THIS WERE ONE TAX PAYER, SO THE FIRST QUARTER IS ONE HUNDRED THOUSAND IN COLLECTIONS THAT PLACES IS AT AROUND THE TOP 50 OF OUR TAX PAYERS L OOKING AT OUR DATA. SO WE HOPE TO SEE THAT CONTINUE TO TO RISE AS MORE COME ONLINE. ANDREW, TO CLARIFY ON THAT, SO THE RATE DID NOT CHANGE. IT WAS STILL THE 1.75. IT'S JUST THE VOLUME. YES, JUST THE VOLUME CHANGE IS JUST MORE SALES TAKING PLACE. I COULDN'T REMEMBER IF THERE AD BEEN A RATE CHANGE. THEY HAD HAD DISCUSSIONS ON HOW TO DO IT AND THEY END UP GOING WITH AN AVERAGE RATE. SO WE'RE NOT COLLECTING OUR 2 PERCENT ON THOSE. WE'RE ONLY GETTING 1.75. THAT'S THE END ANY QUESTIONS ON THAT SALES TAX POINT, ANDREW. I THINK THAT'S SOMETHING THAT WE WILL WANT TO CONTINUE TO SEE ON OUR LEGISLATIVE AGENDA. SO I'M JUST MAKING A NOTE RELATED TO SALES TAX. LET'S WE'VE GOT TO START KEEPING THAT LIST YEAH BECAUSE IT'S GOING TO BE ON US REALLY, AUGUST. ABSOLUTELY. OK. ANY OTHER QUESTIONS FOR ANDREW ABOUT SALES TAX? I DID HAVE A QUESTION ON WITH THE SALE OF THE WESTGATE MALL WITH NEW OWNERS, KIND OF WHAT'S THE LAG TIME ANTICIPATED BEFORE WE WOULD SEE INVESTMENT IN THAT MALL BEGIN TO HAVE AN IMPACT ON THE PRODUCTIVITY? [00:35:01] IT WILL REALLY DEPEND ON WHAT CHANGES THEY HAVE PLANNED. I KNOW THEY HAVE, OF COURSE, A LOT OF EXISTING LEASES. SO IT REALLY COULD PROBABLY STAY STEADY UNTIL THEY SEE SOME TURNOVER. I THINK ONE OF THEIR BIGGER BOXES IS ONE THAT WE'LL SEE THAT THEY'LL HAVE TO REINVEST IN. I BELIEVE DILLARD'S IS RELOCATING TO THE EASTERN END WHERE SEARS WAS. THAT'LL LEAVE THEM A SPOT TO FILL. SO WE COULD SEE SOME ACTIVITY THERE. BUT I CAN REACH OUT TO THE OWNERS TO SEE IF I CAN FIND OUT MORE INFORMATION ON THAT CHANGE. I BELIEVE SO. I KNOW THEY PURCHASE THAT END. SO I THINK THEY HAVE PLANS TO RELOCATE. THEY'RE CURRENTLY LEASING IN THE FRONT THIS WAY. THEY OWN BOTH THEIR SIDES INSTEAD OF PAYING RENT. SO I THINK IT MADE SENSE FOR THEM TO MAKE THAT PURCHASE AND MOVE OVER. BUT THAT LEAVES THEM ALL WITH OWNING THE FRONT END AND HAVING TO FIND A NEW TENANT. OK. I'M GOING TO PASS THE GAVEL, LITERALLY. THANK YOU, MAYOR. OH, SHE'S COMING OVER. OK, GREAT. [D. Presentation on East Gateway TIRZ #2 Progress and Discuss Possible Expansion of the Current Boundary;] CITY MANAGER WE'LL MOVE FORWARD WITH ITEM D ON THE AGENDA. EXCUS E ME WHICH IS. I'LL LET YOU INTRODUCE THAT ITEM. WELL, ANDREW IS STILL HERE TO TALK ABOUT POSSIBLE CHANGES TO TIRZ 2. ANDREW. YES. SO TODAY WE WANTED TO GIVE YOU JUST A BRIEF UPDATE ON WHERE THINGS STAND WITH EAST GATEWAY AND THEN MORE IMPORTANTLY, GET SOME FEEDBACK ON A POSSIBLE CHANGE TO THE BOUNDARY T OWARD THE END OF THE PRESENTATION. SO AS YOU ALL KNOW, THE TIRZ WAS ADOPTED IN 2016. THAT'S WHEN WE CREATE OUR BASE YEAR, WHICH IS JUST UNDER 40 MILLION. EXCUSE ME. AND THEN THE WAY THE TIRZ WORKS IS OVER THE NEXT 30 YEARS OR 2046. ANYTHING ABOVE THAT BASE VALUE GETS REINVESTED INTO THE ZONE AS FAR AS ANY GROWTH OR NEW PROPERTY TAX THAT'S COME ONLINE. SOME OF THE GOALS INCLUDE NEW RETAIL AND ENTERTAINMENT VENUES, RELOCATION EXPANSION, THE BIG TEXAN, RETAIL OUTLETS, AUTO TRUCK SERVICE OUTLETS, AS WELL AS HOTELS, AND THE PLAN FOR NEW RECREATION AND ATHLETIC FACILITIES IN THE ZONE. IDENTIFIED WITHIN THE PROJECT PLAN WAS INFRASTRUCTURE ISSUES IN THE ZONE, WHICH INCLUDES DRAINAGE, WATER, SEWER AND ROADS, AS WELL AS A REASON TO CREATE THE ZONE TO HELP HELP FUND SOME OF THOSE PROJECTS. IT'S MADE UP. THE BOARD IS MADE UP OF 10 MEMBERS, WHICH IS REPRESENTATIVES FROM EACH TAXING ENTITY. AND THEN CURRENTLY WE HAVE THE CITY, [INAUDIBLE] COUNTY, AMARILLO COLLEGE AND THE GROUNDWATER DISTRICT CURRENTLY CONTRIBUTING THEIR TAX INCREMENT TOWARD THE ZONE. SO ANY TAXES COLLECTED ABOVE THAT BASE VALUE HAS THEIR TAX RATE APPLIED TO IT AND THEN GETS DEPOSITED INTO THE TIFF FUND. AS FAR AS PROGRESS TO DATE, WE'VE THE BOARD HAS CREATED A NEW TIRZ #2 EXECUTIVE COMMITTEE A FEW MONTHS AGO THAT MEETS REGULARLY TO STAY ON TOP OF THE PROGRESS OF THE PROJECTS TAKING PLACE AND COME UP WITH NEW IDEAS AND PROPOSALS TO CONTINUE TO MEET THE GOALS THAT THEY'VE SET FOR THE ZONE. WE'VE COMPLETED A NEW CONCEPT PLAN WITH [INAUDIBLE] ASSOCIATES, WHICH HAS GIVEN US A VISUAL MARKETING GUIDE TO SHARE WITH DEVELOPERS AND OTHER INTERESTED PARTIES FOR THE ZONE THAT'S AVAILABLE ON OUR WEB SITE. THEY'VE ALSO DONE A COUPLE OF INCENTIVE AGREEMENTS, THE FIRST ONE BEING THE HOME TO SUITES BY HILTON, WHICH IS JUST EAST OF THE BIG TEXAN. AND THAT'S A APPROXIMATELY 10 MILLION DOLLAR PROJECT CURRENTLY UNDER CONSTRUCTION. THE SECOND INCENTIVE WAS APPROVED RECENTLY IN DECEMBER WITH THE [INAUDIBLE] TRAVEL CENTER APPROXIMATELY 10 TO 15 MILLION DOLLAR PROJECT THAT'S AT THE NORTHWEST CORNER OF LAKESIDE AND I-40. AND THEN JUST LATE LAST YEAR, WE COMPLETED A STUDY WITH BRAILSFORD AND DUNLAVEY, THE SAME CONSULTANTS THAT HELP WITH MARKET ANALYSIS FOR THE [INAUDIBLE] TO TAKE A LOOK AT OUR DEVELOPMENT CRITERIA, OUR GOALS. THEY ALSO DID A MARKET ANALYSIS FOR HOTEL AND RETAIL AND THEN DID SOME MARKETING SOUNDING FOR RECREATION, SPORTS, TOURISM, WATER PARK RESORTS AND RETAIL OUTLETS. WHAT REALLY CAME OUT OF THAT STUDY IS THAT THERE'S NOT A WHOLE LOT OF DEMAND FOR NEW HOTEL ROOMS OR NEW RETAIL TO TAKE PLACE UNTIL A NEW DEMAND DRIVER WILL REALLY DRAW THE TRAFFIC A S FAR AS NEW TOURISTS COME TO TOWN, TO VISITORS, HOTEL STAYS. SO WHAT THEY RECOMMENDED, WHICH LEADS ME TO THE LAST BULLET POINT, IS A FURTHER STUDY THAT'S GOING TO TAKE A HARDER LOOK AT SPORTS TOURISM. IT'S GOING TO LOOK AT OUR MARKET, THE REGION AND BEYOND AND REALLY GET A FEEL FOR ALL THESE SPORTS RELATED ACTIVITIES, HOW MUCH DEMAND THERE IS. IS THERE A GAP THAT NEEDS TO BE FILLED? AND THEN THAT WILL HELP US DETERMINE WHAT KIND OF FACILITY THIS ZONE COULD OR SHOULD [00:40:01] SUPPORT IN THE PAST. WE'VE TALKED ABOUT THIS INDOOR RECREATION FACILITY BEING VOLLEYBALL, BASKETBALL. WE'VE KIND OF GOT AN AMOUNT ATTACHED TO IT. WE REALLY DON'T KNOW WHAT THAT DEMAND IS PUSHING IT. SO WE WANT TO TAKE THAT STEP TO REALLY HONE IN ON WHAT THE WHAT THE MARKET IS. WE HOPE TO HAVE THAT THROUGH THE PROCESS AND TO THE BOARD IN JUNE AS FAR AS THE RESULTS OF THAT STUDY. AS FAR AS THE VALUE AND GROWTH SINCE 2016. WE'VE SEEN UP THROUGH 2019, AN INCREASE IN ALMOST 13 MILLION. THAT IS MAINLY DUE TO THE TWO HOTELS THAT WERE UNDER CONSTRUCTION BEFORE THE ZONE WAS ESTABLISHED. AND THEN THE HOLIDAY INN IS CURRENTLY ONLY PARTIAL, PARTIAL, VALUED AT JUST UNDER 4 MILLION. SO THAT SHOULD GET CLOSER TO 7 MILLION MOVING FORWARD. AND THEN WE HAVE THE NEW HOTEL PLAN AND THE TRAVEL CENTER AND WE EXPECT TO BE UP IN THE 33 TO 40 MILLION RANGE, WHICH SHOULD HAVE SURPASSED THE BASE YEAR. SO SEEING POSITIVE GROWTH SO FAR WITH PROJECTS TAKING PLACE. HERE IS A VIEW OF THE BOUNDARY, THE CURRENT BOUNDARY. IT'S 940 ACRES ALONG EASTERN LAKESIDE THIRD AND I-40. AND THAT JUTS OUT JUST A LITTLE BIT TO THE SOUTH AT THE INTERSECTION OF I-40 AND LAKESIDE. THIS IS THE NEW AREA LAST MONTH WITH THE TIRZ BOARD. THEY GAVE DIRECTION TO ANALYZE POSSIBLE EXPANSION OF THE BOUNDARY. WHAT DROVE THIS DISCUSSION IS WE'VE HAD INTEREST FROM SOMEONE IN THIS ZONE TO THE SOUTH THAT'S LOOKING TO DO A TWENTY MILLION DOLLAR PROJECT, AN EXPANSION, NEW LOCATION, ADD NEW JOBS AND MAKE MAJOR INVESTMENT JUST NEXT DOOR TO THE EAST GATEWAY TIRZ. SO THEY WERE INTERESTED IN A CITY INCENTIVE AND THAT BROUGHT THIS DISCUSSION THAT IT'S NOT IN THE ZONE MIGHT QUALIFY, BUT IT MIGHT BE BETTER IF WE CONSIDERED INCLUDING IT IN THE ZONE. SO THE ZONE COULD BENEFIT FROM THAT FROM THAT PROJECT WITH THIS DISCUSSION LED US TO THINK WHAT LAND MIGHT BE AVAILABLE OUT THERE THAT'S IN CLOSE PROXIMITY THAT WE'VE EITHER HEARD OF HAD INFRASTRUCTURE ISSUES OR HAVING A TOUGH TIME GETTING DEVELOPMENT TO OCCUR. SO IN THE NORTHWEST CORNER, YOU CAN SEE WHAT LOOKS LIKE A PLA TTED RESIDENTIAL SUBDIVISION THAT'S BEEN A LONG LONGTIME PROJECT THAT'S BEEN TOUGH TO GET OFF THE GROUND. IT'S GOT A LOT OF DIFFERENT OWNERSHIP. BUT MOST IMPORTANTLY, NONE OF THE INFRASTRUCTURE WAS INSTALLED INITIALLY WHEN IT WAS SUPPOSED TO. SO A TIFF LIKE THE ONE CURRENTLY IN PLACE COULD BE A WAY TO REBATE SOME PROPERTY TAXES TO HELP ENCOURAGE THAT DEVELOPMENT TO OCCUR. THERE'S ALSO KIND TOWARD THE MIDDLE TO THE SOUTH WAS A RECENT REZONING THAT COUNCIL APPROVED FOR A BUSINESS PARK DEVELOPMENT THAT IS A LIKELY CANDIDATE FOR FUTURE DEVELOPMENT. IT'S IN A NEW MARKET TAX CREDIT ZONE. IT'S ALSO HAS SOME CHALLENGES. I THINK THAT THEY FACED WITH DRAINAGE SO SIMILAR TO THE CURRENT BOUNDARY, THIS ONE FACES SOME DRAINAGE ISSUES AS WELL. SO RIGHT NOW, WE'RE STILL EARLY IN THE PROCESS IS KIND OF LOOKING AT WHAT THE CURRENT TAX VALUE IS, WHAT KIND OF GROWTH WE MIGHT SEE. SO YOU DON'T WANT TO TAKE SOME IS DECLINING AND NOT GOING TO HAVE AN OPPORTUNITY TO TO REINVEST BECAUSE YOU WANT TO SEE THE GROWTH OCCUR IN THAT ZONE. THIS IS APPROXIMATELY 11 HUNDRED ACRES. IT'S ALSO A PORTION OF IT'S OUTSIDE THE CITY LIMITS. BUT YOU CAN DO , ETJ AS FAR AS A TIRZ BOUNDARY, BUT WE'LL LOOK AT THAT AS WELL. ANOTHER INTERESTING POINT WITH THIS ONE GOING DOWN TO 34TH IS A PORTION WOULD BE IN RANDALL COUNTY. SO THAT'LL BE A DISCUSSION WE CAN HAVE WITH THEM TO SEE IF THEY HAVE AN INTEREST IN PARTICIPATING IN THE PROCESS AS WELL, WHICH WOULD BE A WHICH WOULD BE A FIRST. SO TODAY WE'RE HOPING TO GET SOME FEEDBACK FROM YOU AS WELL. THE BOARD'S SHOWN INTEREST IN EXPANDING THE BOUNDARY. WE'VE HAD SOME PRELIMINARY DISCUSSIONS WITH AMARILLO COLLEGE AND POTTER COUNTY TO GET THEIR FEEDBACK AND THEY SEEM PRETTY FAVORABLE TO THE IDEA. THE PROCESS IS BASICALLY THE SAME AS CREATING THE TIRZ. IT'S AN ORDINANCE, A PUBLIC HEARING, UPDATING THE PROJECT FINANCING PLAN FOR ANY ADDITIONAL BOUNDARY. BUT YOU BASICALLY BRINGING IN. AND THEN AFTER IT'S APPROVED BY COUNCIL, THAT WOULD BE CONTRIBUTING THE CITY'S TAX INCREMENT. AND THEN AFTER THAT, ONCE IT'S ESTABLISHED, YOU HAVE TO GO TO EACH TAX AGENCY AND GET NEW PARTICIPATION AGREEMENTS TO CONTRIBUTE THEIR TAX RATE TO THE PROJECT. SO IT'S ABOUT PROBABLY ABOUT A 30 TO 60 DAY PROCESS FOR CITY COUNCIL TO CONSIDER. AND THEN IT'S JUST A MATTER OF TIME WITH GETTING ON THE DIFFERENT TAXING ENTITY BOARDS FOR THEM TO CONSIDER PARTICIPATION. SO ANY QUESTIONS? CITY COUNCIL ANY QUESTIONS OR CONCERNS? YES, THIS WOULD BE THE TIME IF. [00:45:02] PLEASE. YOU KNOW, ONE OF MY ONE, I'M HAVING TROUBLE A LITTLE BIT FIGURING OUT THE OVERLAY OF WHERE THE OLD ONE IS. SURE. [INAUDIBE] DIRECTIONALLY, IT'S LIKE THIS ONE IS SUCH A DIFFERENT SHAPE. I'M NOT QUITE SURE HOW, HOW AND WHERE AND WHAT DIRECTION WE'RE EXPANDING. RIGHT. SO HERE'S THE CURRENT BOUNDARY. SO THE NORTH SIDE IS 3RD THE SOUTH UNTIL JUTS OUT TO I-40. AND THEN IT KIND OF COVERS THAT INTERSECTION THERE WHERE THEY'RE DOING A LOT OF THE TXDOT CONSTRUCTION WORK. AND THEN TO THE NEXT SLIDE, IT'S EVERYTHING SOUTH OF I-40. SO CURRENT ZONE NORTH OF I-40. NEW POSSIBLE BOUNDARY WOULD BE EVERYTHING SOUTH. OH, WELL, NO WONDER I WASN'T FOLLOWING. SO YOU'D HAVE THIS SHAPE UP HERE. ALREADY EXISTING. UNDERNEATH IT. THIS IS NOT THE TOTAL BOUNDARY. NO, THIS WOULD BE THE NEW. YOU SAID THE FIRST ONE IS NINE HUNDRED AND FORTY ACRES IS THE SECOND ONE ELEVEN HUNDRED ACRES OR IS IT? NOW. PROBABLY A LITTLE BIT TOO LARGE, BUT WE'RE JUST KIND OF TAKING A LOOK RIGHT NOW. WE'VE GOT A SNAPSHOT OF EVERYTHING FROM 2010 TO 2020 AS FAR AS A TAX VALUE. SO WE CAN SEE IF THERE'S BEEN DEVELOPMENT OCCURRING OR IF IT'S DECLINING. AND THOSE KIND OF QUESTIONS. YOU'RE TALKING ABOUT MORE THAN DOUBLING. YES. THE SIZE OF OUR CURRENT TIRZ. POSSIBLY. THE REQUEST FROM TIRZ 2 FROM THE BOARD WAS TOO. IT WAS DRIVEN BY THE REQUEST FOR ASSISTANCE ON A REDEVELOPMENT OF A SITE ON THE SOUTH SIDE OF I-40. BUT THEY ALSO ASKED WHAT F OOTPRINT EXPANSION WOULD MAKE SENSE. AND SO THIS IS WHAT WE'RE STUDYING RIGHT NOW. OBVIOUSLY, WE'VE GOT THE OBVIOUS REDEVELOPMENT OPPORTUNITIES ON I-20. THERE IS VALUE ALREADY. I'M SORRY, ON I-40. THERE IS VALUE ALREADY ESTABLISHED IN THAT AREA, BUT IT'S PRETTY MUCH DEVALUED TO A SIGNIFICANT EXTENT. SO THERE'S A GOOD POSITION FROM A BASE VALUE STANDPOINT FOR ANY REDEVELOPMENT IN THAT AREA TO HAVE A SIGNIFICANT POSITIVE IMPACT ON THE OVERALL TIRZ. AND THEN IF YOU LOOK SOUTH OF THAT DEVELOPED CORRIDOR, RIGHT ALONG I-40, IT'S COMPLETELY UNDEVELOPED. SO THERE'S A LOT OF OPPORTUNITY TO CAPTURE VALUE AS YOU GO FORWARD. AND THE MAIN CHALLENGES FOR TIRZ 2 OUR DRAINAGE AND DRAINAGE IS SOMETHING THAT AFFECTS BOTH THE NORTH AND THE SOUTH SIDE BECAUSE THEY COMMUNICATE TOGETHER. SO THOSE DRAINAGE PROJECTS ARE GOING TO MOVE WATER FROM THE NORTH SIDE TO THE SOUTH SIDE. TRANSITING THAT WATER UNDERNEATH AND AROUND I-40 IS GOING TO BE THE BIGGEST CHALLENGE. SO HAVING THE BOTH OF THESE SIDES WORK TOGETHER IS GOING TO BE A USEFUL COMPONENT. IF YOU COULD GO BACK AND TALK THROUGH HOW DO YOU DO AN INCENTIVE PROGRAM WHEN YOU HAVE PART OF THE BOUNDARY YOU'RE TALKING ABOUT IS OUTSIDE THE CITY LIMITS. SO THE PORTION THAT'S OUTSIDE THE CITY LIMITS, IT WOULD REALLY JUST BENEFIT FROM THE OTHER TAXING AGENCIES CONTRIBUTING UNTIL SUCH POINT THEY REQUESTED ANNEXATION. SO IF IT'S POTTER COUNTY, AMARILLO COLLEGE, RANDALL COUNTY, THEY COULD CONTRIBUTE THEIR INCREMENT FROM THAT AREA THAT'S OUTSIDE THE CITY LIMITS TO GO TOWARD THE ZONE. AND SO IT COULD OFFSET PROJECT COSTS THAT THE ZONES PLAN ON DOING OR IF THOSE ARE LOOKING AT DEVELOP, THEY COULD REQUEST INCENTIVE IN THAT AREA. SO BASICALLY, I CAN ALL JUST WORK TOGETHER, WHETHER WE ARE IN THE CITY LIMITS OR NOT. SO WHAT DOES THE BLUE REPRESENT ON THIS PICTURE? THAT'S ACTUALLY LAND USE. SO THAT'S JUST COMMERCIAL SHOWING T HAT'S COMMERCIAL. AND THEN THE REST IS [INAUDIBLE]. THAT'S VACANT, BASICALLY. SO I WOULD ASSUME THAT BY PULLING IN THIS SIDE, THEN YOU WILL HAVE THERE'LL BE A INCENTIVE TO DRESS UP I-40 AS PEOPLE ARE ENTERING OR EXITING THE CITY. YES, THAT'S YES. THAT'LL BE O NE OF THE MAIN REASONS, THE BIGGEST BANG FOR THE BUCK IS NOW THAN EVERYTHING THAT ENDS UP HAPPENING ALONG THAT CORRIDOR RIGHT THERE WILL HAVE AN EFFECT UPON WHAT PEOPLE, THE SIX MILLION PEOPLE THAT ARE DRIVING SEE AND LOVE OUR CITY. AND WE CAN HAVE A MUCH BETTER IMPACT ON HOW THAT TURNS OUT AND HOW IT APPEARS. YES. AND THAT'S A PLUS SIDE IF YOU ARE OFFERING A REBATE OR INCENTIVE, YOU CAN HELP. YOU CAN NEGOTIATE THOSE TERMS SINCE A STATE LAW CHANGE L AST YEAR, WE CAN'T REALLY MAKE IT PART OF OUR CODE OR ACQUIRE ARCHITECTURAL STANDARDS OR BUILDING MATERIALS. BUT IF YOU'RE NEGOTIATING AGREEMENT, THAT GIVES YOU SOME FLEXIBILITY THAT YOU WOULDN'T HAVE HAD SINCE THAT STATE LAW CHANGED. SO I ALSO KNOW THAT AT SOME POINT IN TIME THERE'S BEEN A JUST I'VE HEARD LITTLE WHISPERS OR TALK ABOUT A I-40 OVERLAY. STATE LAW DETERMINED WE COULDN'T DICTATE BUILDING MATERIALS ANYMORE. OKAY. SO THAT WENT AWAY JUST REAL RECENTLY, RIGHT. [00:50:03] LAST LEGISLATIVE SESSION. OKAY. UNLESS IT'S A HISTORIC DISTRICT, MAIN STREET, THOSE KIND OF CRITERIA, YOU CAN'T DICTATE BUILDING STANDARDS. SO REALLY OUR BEST CHANCE NOW AT DRESSING UP I-40 COMING THROUGH WOULD BE TO ALLOW THIS TO HAPPEN, TO CREATE SOMETHING SO THAT NOW THAN THERE IS AN INCENTIVE TO MAKE IT LOOK MUCH MORE APPEALING AS PEOPLE WERE DRIVING THROUGH IT. RIGHT. YEAH. SO IF IT'S REDEVELOPED AND THERE'S INCENTIVE INVOLVED, WE CAN ENCOURAGE THAT. THE PROSPECT THAT CALLED. I TOLD HIM THAT WOULD BE SOMEONE WE SPECIFICALLY LOOK FOR IS MAKING SURE IT'S AN UPGRADE AND LOOKS BETTER FOR THE I-40 FRONTAGE. OKAY. SO NOW THEN THE NEXT THING IS GOING TO BE I ASSUMED A LITTLE PURPLE LINE THROUGH THERE. THAT'S THE COUNTY LINE, RIGHT? YES. ON THE SOUTH END THERE, THAT SMALL SLIVER. THAT'S YES. THAT'S THE COUNTY LINE. IS THERE AN INCENTIVE FOR RANDALL COUNTY TO BE TO BE INTERESTED IN THIS? I THINK IT COULD BE, ESPECIALLY ON THE SOUTHERN END. THAT'S WHERE THE BUSINESS PARK ZONING HAS GONE IN. AND I KNOW THEY'RE VERY INTERESTING IN GETTING NEW INDUSTRY AND COMMERCIAL DEVELOPMENT. AND THIS ZONE COULD HELP OFFSET THE INFRASTRUCTURE COSTS TO GET TO THAT POINT. A LONG 34TH? YES. AND NORTH OF 3 4TH THERE, THAT'S WHERE WE REZONED IT TO PLAN DEVELOPMENT FOR A BUSINESS PARK. SO IT'S GOT THE ZONING NOW IT JUST NEEDS TO FIGURE OUT ITS INFRASTRUCTURE. SO IT WOULD BE BENEFICIAL POTENTIALLY. YES. I TALKED TO THE IT'S ROCK ROAD DEVELOPMENT AND [INAUDIBLE] ON THAT LAND THEY WERE VERY, VERY INTERESTED AND SUPPORTIVE OF THE ZONING SPANNING FOR THAT REASON TO HELP OFFSET SOME OF THOSE INFRASTRUCTURE CONCERNS. SO THAT'S WHY YOU JUST GO AHEAD AND IT GOES ALL THE WAY DOWN TO 34TH, BECAUSE THAT'S THE MAJOR THOROUGHFARE SOUTH THAT ACTUALLY RUNS THROUGH THERE RIGHT? YEAH. WE TRIED TO MAKE IT AN EVEN CUT OFF THERE. SO DO I THINK IS THE IS THE FAR EASTERN SIDE. IS THAT THE LOOP. YES SIR. OKAY. THAT'S LAKESIDE. SO HERE'S MY CONCERN. IT'S THE TIRZ CREEP. IT W HAT POINT DO YOU NOT JUST. THE WHOLE CITY'S A TIRZ AND WE'RE. AND EVERYTHING NORTH AND SOUTH OF I-40 COMING THROUGH. YOU KNOW, JUST THE GIVING UP THE TAXES ON THESE PROPERTIES THE INCREASE AGAIN, TAXES ON NOTHING IS STILL NOTHING. SO THAT'S THE WHOLE POINT. IT'S LIKE IF YOU'RE NOT HAVING GROWTH, IT'S LIKE WELL YOU GIVE INCENTIVES FOR THE FUTURE POTENTIAL. I JUST THINK WE NEED TO BE REALLY CAREFUL ON MOVING FORWARD. THIS ISN'T JUST A LITTLE EXPANSION. TO ME, THIS IS ANOTHER TIRZ. THIS IS LIKE TIRZ 3. AND MAYBE IT'S SIMPLER E XPANDING FROM AN EXISTING STRUCTURE Y OU ALREADY HAVE AN EXISTING COMMITTEE Y OU ALREADY HAVE. BUT WE'RE WE'RE DOUBLING THAT SPACE. SO IT IS JUST IT'S A CONCERN OF HOW MUCH WE CAN ABSORB AS A CITY TO KEEP INCENTIVIZING AND GIVING AWAY THE TAXES ON THE GROWTH. SO IT'S JUST I'M A LITTLE YOU KNOW, I'M DEFINITELY NOT ALL IN ON THIS CONVERSATION. THIS IS GOOD INFORMATION. I'D WANT TO SEE KIND OF THE THE TAX BASE THAT'S IN THERE. AGAIN, MAYBE A LITTLE BIT MORE INFORMATION ON WHAT. RIGHT. [INAUDIBLE] FROM THERE NOW. THAT'S WHAT WE'RE ANALYZING RIGHT NOW. IT'S A LITTLE. THIS SOUNDS A LITTLE OVER 20 MILLION. SO IT'S ALREADY LESS VALUED THAN THE CURRENT TIRZ AT 39. SO IT'S. BECAUSE THIS IS WHAT I BEGIN TO PICTURES LIKE, OKAY. SO THEN ANOTHER GROUP COMES IN AND THEY WANT TO DEVELOP SOMETHING A LITTLE BIT TO THE WEST OF OUR RED BOX. DO WE JUST KEEP CHASING AFTER EVERY NEW PROJECT WHEN THAT IS THE POINT. YOU DEFINE A BOUNDARY AND THEN YOU BRING INCENTIVES INSIDE OF IT T O GET THAT DEVELOPED, YOU DON'T JUST KEEP EXPANDING YOUR RED LINE O F OF HOW FAR OUT YOU'RE GOING TO GO, WHICH IS SOMETHING I WANT TO HAVE HIS PART OF OUR CONVERSATION. AND I CAN SHARE WITH YOU THAT THE STATE LAW IS VERY SPECIFIC STANDARDS FOR WHAT YOU CONSIDER FOR A ZONE CAUSE IT HAS TO BE A FLIGHT AREA N OT SEEING THAT GROWTH AND DEVELOPMENT HAS MAJOR INFRASTRUCTURE OR OTHER CONCERNS TO ADDRESS S O THEY ACTUALLY HAVE YOU LAY OUT HOW THAT ZONE QUALIFIES TO EVEN BE ONE. BUT THAT'S THAT'S DEFINITELY CRITERIA THAT WE HAVE TO TO LOOK FOR, WHICH THOSE CONVERSATIONS OF HOW TIRZ 2 WAS DEFINED T HAT BOUNDARY HAPPENED BEFORE ANY OF US WERE ON THIS COUNCIL. YES, THAT WAS IN 2016. AND SO I DON'T KNOW THE CONVERSATIONS THAT WENT IN AT THE TIME. WHY WAS IT JUST THE THE NORTHERN PART AND NOT THE SOUTHERN PART? DID IT QUALIFY THEN? BUT THEY JUST DID A SMALLER FOOTPRINT. AND SO, YOU KNOW, IT'S ONLY FOUR YEARS AGO I COULD SEE KIND OF A THING OF 10 YEARS HAVE GONE BY. WE NEED TO LOOK AT MAYBE SOME MORE INCENTIVES IN SOME OTHER AREAS. [00:55:02] BUT TO ME, IT'S A PRETTY SHORT TIME PERIOD FOR FOUR YEARS TO HAVE JUST GONE BY. AND WE'RE DOUBLING THAT TIRZ. THOSE ARE JUST SOME OF MY THOUGHTS. SO WHENEVER WE TALK ABOUT THIS TIRZ 2 I'M GOING BACK TO YOUR SLIDES SHOWING THE INCREASE IN VALUE. SO JUST IN THAT THREE YEAR PERIOD OF TIME, WE HAVE INCREASED THE VALUE BY 50 PERCENT. WOULD THAT BE CORRECT? RIGHT. SO DID YOU GET THE SAME KIND OF RESULT IN THE TIRZ 1? I DON'T BELIEVE SO. I THINK IT TOOK A LITTLE BIT LONGER, BUT IT WAS ALSO MORE ESTABLISHED AT THE TIME, SO IT TOOK MAJOR REDEVELOPMENT FOR NEW TAX BASE TO COME ON. I CAN. SO THIS IS A ZONE THAT'S GOT SO MUCH POTENTIAL THAT WE CAN SEE. RIGHT. THESE KINDS OF NUMBERS EASILY BEING REPLICATED. BECAUSE NOW THAT WE'RE COVERING BOTH SIDES OF I-40. RIGHT. TIRZ NUMBER ONE. I THINK THE BASE VALUE IS ONE THIRTY NINE, ONE HUNDRED THIRTY NINE MILLION. AND WE'RE JUST NOW IN THE 24 0 RANGE. IT TOOK TEN PLUS YEARS TO GET THERE JUST BECAUSE IT WAS ALL ESTABLISHED. SO IT HAD TO SEE REDEVELOPING OCCUR. THIS IS FOR THE MOST PART GROUND-UP DEVELOPMENT. IT'S NOT TAXED VERY HIGH RIGHT NOW. SO IT'S HAS A LOT OF A LOT OF POTENTIAL AND A LOT OF POTENTIAL TO REINVEST IN ITSELF COMPARED TO DOWNTOWN. THE GOAL OF THE TIRZ IS ACTUALLY 100 MILLION WITHIN FIVE YEARS. SO THEY HAVEN'T MET THEIR THEY'RE NOT GETTING CLOSE TO MEETING THE GOAL OF A HUNDRED MILLION FIVE YEARS. SO IT'S SEEING IMPROVEMENTS BUT IT'S NOT SEEING WHAT THEY WERE HOPING FOR. AND THE CHALLENGES [INAUDIBLE] THE GOAL WAS 100 MILLION OF INCREMENTAL VALUE THAT COULD BE USED FOR THAT TAX VALUE TO PAY FOR INFRASTRUCTURE AND ASSUMPTION THAT NO INCENTIVES WERE OFFERED DURING THAT TIME. SO WHILE WE'VE HAD SIGNIFICANT INVESTMENT IN TIRZ NUMBER TWO OVER THE LAST FOUR YEARS, OUTPACING THE INVESTMENT IN TIRZ NUMBER ONE, BECAUSE ROUGHLY 50 PERCENT OF THAT ADDITIONAL INVESTMENT, ADDITIONAL VALUE WAS INCENTIVIZED, WHICH IS STILL A MUCH M ORE COMPETITIVE INCENTIVE, A LOWER INCENTIVE THAN WHAT WAS EXPERIENCED IN TIRZ NUMBER 1 . IT'S STILL NOT PERFORMING AS WAS PROJECTED. AND I THINK ULTIMATELY THOSE PROJECTIONS WERE UNREALISTIC TO BE ABLE TO HAVE 100 MILLION DOLLARS IN INVESTMENT WITHOUT ANY INCENTIVES AND TIRZ N UMBER TWO, BECAUSE THE BIGGEST BARRIER IS NOT RIGHT ALONG 40 WHERE THE DEVELOPMENT IS HAPPENING. IT'S ANYTHING OFF OF 40 THAT RELIES UPON BOTH DRAINAGE AND OTHER INFRASTRUCTURE INVESTMENT WHILE THE VALUE HAS TO GO UP TO PAY FOR THAT DRAINAGE AND INFRASTRUCTURE INVESTMENT. AND WE'RE IN ADDITION, IN PARTNERSHIP WITH ALL OF OUR OTHER JURISDICTIONAL PARTNERS, WE'VE COMMITTED TO A PROPORTIONAL PAYMENT FOR ALL OF THOSE INFRASTRUCTURE INVESTMENTS. AND I KNOW THAT ALL OF OUR JURISDICTIONAL PARTNERS ARE GOING TO LIVE UP TO THOSE AGREEMENTS AND MAKE SURE THAT WE'RE ABLE TO MAKE THOSE INVESTMENTS AND REIMBURSE THE CITY OR WHATEVER ENTITY DOES THOSE INVESTMENTS. WE WILL BE THROUGH THE EDITION OF THE AREA OF 40 ON THE SOUTH SIDE. IT WILL CREATE THE OPPORTUNITY THROUGH REINVESTMENT ON THE SOUTH SIDE AND ORIGINAL INVESTMENT ON THE NORTH SIDE TO CREATE VALUE THAT'S GOING TO PAY FOR THE INFRASTRUCTURE NECESSARY TO ALLOW VALUE, TO ALLOW INVESTMENT FARTHER TO THE NORTH AND FARTHER TO THE SOUTH IN THE TIRZ NUMBER TWO AREA. SO IT IS A LITTLE BIT OF A CHALLENGING SITUATION AND WE'RE TRYING TO LOOK CREATIVELY TO CREATE THE CAPACITY FOR THAT INVESTMENT TO TAKE PLACE SOMETIME IN THE INSIDE THE NEAR FUTURE. ABSENT SOMETHING LIKE THIS, IT'S JUST GONNA BE A SLOW GROWTH, A SLOW BOIL TO GET TO THE POINT WHERE WE HAVE THE VALUE NECESSARY TO FUND THE IMPROVEMENTS THAT ARE PLANNED THROUGH TIRZ 2. AND I THINK INITIALLY IN 2016 I WASN'T HERE, BUT I THINK IT WAS A CITY INITIATED ZONE, BUT IT WAS MORE PROPERTY OWNER DRIVEN. SO ALL THE PROPERTY OWNERS INTERESTED WERE ON THE NORTH SIDE. I DON'T KNOW IF THERE IS MUCH CONVERSATION ON THE SOUTH SIDE LIKE THERE IS TODAY. BUT YOU PROBABLY COULD HAVE SEEN THAT DISCUSSION CHANGE BACK THEN AS FAR AS MAKING A COMPLETE GATEWAY NORTH AND SOUTH TO SEE THOSE IMPROVEMENTS. AND REALLY YOU'D HAVE A DIVISION ON T HE NORTH SIDE'S LOOKING MORE OF THE ENTERTAINMENT RETAIL VENUES. SOUTH IS LOOKING MORE COMMERCIAL INDUSTRIAL, LARGER TAX VALUE. SO KIND OF GET BEST OF BOTH WORLDS HAVING BOTH SIDES, BUT WE'LL CONTINUE TO EVALUATE AND SEE IT MAY BE TOO BIG. ONCE WE LOOK AT THE PROPERTY VALUES, IT MAY NOT MAKE SENSE TO TAKE IN ALL THAT FRONT AGE THAT IS ALREADY BUILT OUT UNLESS IT HAS HOPED TO BE OR REDEVELOPED TO THE NEXT FIVE YEARS. BECAUSE YOU DON'T WANT TO TAKE IT IN IF IT'S ALREADY FULLY ESTABLISHED AND STARTS TO DECLINE. WELL, ONE THING THAT I WOULD THINK THAT IN THE FUTURE AND WE WANT TO SEE I-40 BECOME A DRAW LIKE IT IS. [01:00:01] I'M NOT SAYING THAT WE HAVE TO DO THIS, BUT I THINK IF WE DON'T WALK THROUGH ALL THE STEPS, WE WOULD BE FOOLISH NOT TO GO ALL THE WAY THROUGH, MAKE SURE SEE IF THIS IS A VALUABLE THING TO US OR NOT. I THINK WE HAVE TO WALK ALL THE WAY THROUGH IT BECAUSE WE WERE POISING OURSELVES AS A CITY FOR SOME SIGNIFICANT GROWTH. AND IF WE WANT TO MAKE I-40 HELP US SALES TAX SEEMS TO BE OUR NUMBER ONE WAY OF INCREASING THE FUNDING THAT COMES INTO THE CITY FOR THE ESSENTIAL SERVICES THAT WE WANT. I THINK WE HAVE TO LOOK AT THIS AND WE HAVE TO LOOK AT IT AND SAY, DOES THIS WORK? AND IF IT DOES WORK, THEN WE NEED TO BE PROACTIVE WITH IT. COUNCIL MEMBER SMITH, DID YOU HAVE ANY COMMENTS OR CONCERNS THAT YOU WOULD LIKE TO SHARE? WELL, I GUESS I WANT MORE INFORMATION. WHEN TIRZ 1 STARTED THAT WAS A DOWNTOWN DEAL AND WE DIDN'T HAVE HARDLY ANYTHING HAPPENING DOWNTOWN. AND SO THAT HELPED THAT. THIS IS AN AREA I-40 WE'RE BLESSED TO HAVE I-40 AND ALL THESE MILLIONS OF VEHICLES GOING THROUGH, BUT IT GROWTH MIGHT TAKE PLACE THERE WITHOUT ANY INCENTIVE. AND SO I'M NOT SAYING I'M AGAINST IT. I JUST WANT MORE INFORMATION. ANDREW, I HAD A QUESTION ON AND DO YOU KNOW WITH THE SPORTS TOURISM CONVERSATIONS THAT ARE GOING ON, IF THEY ARE HAVING CONVERSATIONS WITH THE SPORTS COMMITTEE THAT'S CREATED UNDER THE CDC? TONY FREEMAN. THEY WILL. THEY HAVEN'T STARTED YET. THERE IS A SPECIFIC COMMITTEE THAT HAS BEEN REFLEXIVELY DO A LOT OF WORK ON THAT. AND I THINK THEY THEY MIGHT BE ABLE TO SHARE INFORMATION BACK AND FORTH. ABSOLUTELY. WE'LL MAKE SURE THEY GET IN TOUCH. COUNCILOR, DO YOU HAVE ANY OTHER QUESTIONS? WHAT'S YOUR OPINION? I THINK I WOULD LIKE TO SEE IS. WELL, WHAT I WOULD LIKE TO SEE IS ANDREW AND HIS STAFF CONTINUE TO EVALUATE T HE EXPANSION OF THIS PARTICULAR TIRZ AND BRING US BACK A LITTLE BIT MORE INFORMATION. AND THEN ALSO, AS COUNCIL MEMBER HAYS HAS SAID, YOU KNOW, REACH OUT TO THE MR. FREEMAN IN REGARDS TO THE. THE STUDY. YEAH. THE STUDY ON THE SPORTS CONVERSATION THAT'S GOING ON OR THE CONVERSATION THAT THEY'RE HAVING. WE'LL DO IT. THANK YOU FOR YOUR WORK ON THIS ISSUE. THANK YOU. ALL RIGHT. [E. Update on Landfill Operational Review and Engineering Professional Services Proposal; and] LET'S SEE. MOVING ON TO ITEM E, WHICH IS AN UPDATE ON THE LANDFILL OPERATIONAL REVIEW AND ENGINEERING PROFESSIONAL SERVICES PROPOSAL, MR. CITY MANAGER. WE'VE GOT BLAIR SNOW TO BRING US THE DETAILS. YES, THANK YOU. THE PURPOSE OF THIS UPDATE IS JUST TO GIVE YOU A LITTLE BIT OF INFORMATION ON OUR LANDFILL. AND THEN WE WANT TO PRESENT TO YOU A PROPOSAL FOR PROFESSIONAL SERVICES THAT WE WILL BE BRINGING TO YOU FOR APPROVAL AT A FUTURE MEETING. JUST TO GIVE YOU A LITTLE BIT OF BACKGROUND ON THIS, THE CITY CURRENTLY USES PROFESSIONAL SERVICES AT OUR LANDFILL. IT'S A VERY LARGE AND COMPLEX OPERATION. A LOT OF REVENUE COMES THROUGH OUR LANDFILL, BUT IT'S ALSO VERY EXPENSIVE TO DEVELOP. SO WE RELY ON EXPERTS TO HELP US NOT ONLY WITH ENVIRONMENTAL CONCERNS, WITH OUR GAS COLLECTION SYSTEM AND OUR GROUNDWATER, BUT ALSO WITH REPORTING WITH THE STATE TO MAKE SURE THAT WE REMAIN COMPLIANT. RIGHT NOW, WE CURRENTLY USE TWO DIFFERENT FIRMS. ONE IS PARK HILL, SMITH AND COOPER, AND THE OTHER IS HDR INC. AND WE ACTUALLY HAVE REPRESENTATIVES FROM THOSE TWO COMPANIES HERE WITH US TODAY THAT I'LL INTRODUCE TO YOU IN JUST A SECOND. AND THEY CAN REVIEW THEIR PROPOSAL. BUT WE HAVE A CURRENT RELATIONSHIP WITH THESE FIRMS. AND SO RIGHT NOW WE DO CONTRACT WITH THEM ALREADY. AND WHAT WE ASK THEM TO DO IS COMBINE THEIR EXPERTISE, GET US ONE PROPOSAL, AND ALSO INCLUDE AN OPERATIONS REVIEW FOR THE LANDFILL. BECAUSE RIGHT NOW WE'RE AT A POINT IN TIME WHERE WE NEED TO START LOOKING AT FUTURE DEVELOPMENT TO MAKE SURE THAT WE CAN MEET THE NEEDS OF THE COMMUNITY. AND SO THAT'S WHERE WE'RE AT TODAY. AS I MENTIONED, SOME OF OUR CURRENT CONSIDERATIONS ARE JUST MAKING SURE THAT WE HAVE ENOUGH SPACE MOVING FORWARD. WE'RE ALSO LOOKING AT WHERE WE'RE GOING TO PLACE THE TRASH. WE CAN GO UP. WE CAN DEVELOP NEW CELLS. THERE'S LOTS OF DIFFERENT OPTIONS FOR THAT. AND SO WE WANT TO LOOK AT ALL OF THOSE. AND WE ALSO WANT TO BE VERY FISCALLY AND ENVIRONMENTALLY RESPONSIBLE SO AND WE WANT TO MAKE SURE THAT WE'RE TESTING THE GROUNDWATER AND AND TAKING CARE OF THE GAS COLLECTION SYSTEM THAT WE HAVE. AND SO THAT'S WHERE THESE TWO FIRMS COME IN. AND I WOULD LIKE TO INTRODUCE THEM TO YOU HERE WITH US TODAY FROM PARKHILL, SMITH A ND [01:05:02] COOPER IS TODD STIGGINS. THIS IS TODD. AND THEN ALSO WITH HIM IS JOEL MILLER FROM HDR. AND I'M GOING TO HAND THIS OFF TO THEM TO GO THROUGH THEIR PROPOSAL AND THEN I'LL COME BACK AND ANSWER ANY QUESTIONS YOU MAY HAVE. THANK YOU. GOOD AFTERNOON, MAYOR PRO-TEM, COUNCIL. SO, AS BLAIR SAID, THE PUBLIC WORKS DEPARTMENT REQUESTED THAT JOEL AND I EXCUSE ME PUT TOGETHER A PROPOSAL FOR ESSENTIALLY JUST ANNUAL MISCELLANEOUS SERVICES RELATED TO THE SOLID WASTE FACILITIES HERE, MOSTLY THE LANDFILL, BUT ALSO THE TRANSFER STATION. A LITTLE BACKGROUND, PSC IS ACTUALLY CURRENTLY UNDER CONTRACT W HEN WE GET TO THAT POINT TO DEVELOP THE NEW SELL OUT AT THE LANDFILL, HDR RECENTLY DID THE DESIGN AND CONSTRUCTION OF THE LANDFILL GAS COLLECTION SYSTEM AND WE BOTH TEAM TOGETHER TO COMPLETE THE CONSTRUCTION OF THAT BACK IN 2018. WE ACTUALLY HAVE ABOUT TWENTY FIVE YEARS, A LITTLE MORE THAN TWENTY FIVE YEARS OF TEAMING TOGETHER. OBVIOUSLY, JOEL AND I WEREN'T THERE THE ENTIRE TIME. SO WHAT I'M GOING TO DO, WE'RE JUST GOING TO KIND OF TAG TEAM THE HIGH POINTS ON THIS PROPOSAL. FEEL FREE. I ENCOURAGE YOU TO INTERRUPT AND ASK QUESTIONS AND WE'LL JUST WORK THROUGH IT. HEY, I'M JOEL MILLER, AND LIKE YOU SAID, WE'RE JUST GOING TO GO THROUGH EACH SLIDE AS KIND OF A TASK IN OUR PROPOSAL AND THEN FEEL FREE TO JUST ASK QUESTIONS OR WILL MOVE AS FAST OR AS SLOW AS YOU GUYS NEED. I'LL BE TALKING ABOUT THE ONES THAT WE'LL TAKE THE LEAD ON AND THEN TODD WILL BE TALKING ABOUT THE OTHERS THAT HE'S TAKING THE LEAD ON FOR. THE FIRST TASK IS GROUNDWATER MONITORING. OH, YEAH. THANKS. FOR T HE FIRST TASK, ITS GROUNDWATER MONITORING AND ITS GENERALLY CONSISTS OF TWO LARGE REPORTS PER YEAR. THEY TAKE SAMPLES AT THE GROUNDWATER WELLS AND WE PERFORM STATISTICAL ANALYSIS ON THOSE SAMPLES AND THEN WE REPORT TO TCEQ TWICE A YEAR. THIS YEAR THERE IS AN OPPORTUNITY TO DO A BACKGROUND UPDATE R EPORT WHAT IT IS A LITTLE DEEPER DOVE IN THE STATISTICS AND IT ALLOWS YOU TO UPDATE SOME LIMITS ON THE GROUNDWATER CONSTITUENTS SO THAT'S WHAT WE'LL BE DOING FOR GROUNDWATER. THAT'S KIND OF A CONTINUATION OF WORK THAT WE'VE DONE OVER THE YEARS AT THE SITE. TEST 2 IS REGARDING GAS. LANDFILL GAS, LIKE TODD SAID. WE RECENTLY PUT IN A GAS COLLECTION CONTROL SYSTEM THERE. THE BIGGEST PORTION OF THIS IS THE THIRD BULLET ITEM. IT'S THE OVERSIGHT AND REPORTING OF THE MONTHLY MONITORING OF THOSE WELLS. [INAUDIBLE] GROUNDWATER Y OU HAVE TWO TOO LARGE REPORTS A YEAR WHERE YOU REPORT THE RESULTS OF MONTHLY MONITORING. THERE'S ALSO QUARTERLY SURFACE MONITORING, AND THAT'S INCLUDED THE FIRST TWO BULLET ITEMS ARE SMALLER. SO [INAUDIBLE] FIRST ONE IS TO TCEQ. THE OTHER ONE IS DIRECTLY TO EPA REGARDING THE OPERATIONS OF THE GAS SYSTEM. AND I THINK TODD THE NEXT ONES YOURS . I HAD A QUESTION ON THE TASK ONE. WHAT DOES IT MEAN R ESETS THE CONSTITUENTS LIMITS? BASICALLY WHAT IT DOES IS EVERY TWO YEARS THE TCEQ ALLOWS YOU TO DO THIS REPORT AND IT ALLOWS YOU TO LOOK BACK AT MORE DATA, BASICALLY HAVE A BIGGER DATABASE AND SO YOU CAN DO SOME DIFFERENT STATISTICS WITH THAT DATABASE. GENERALLY, THERE IS A THING CALLED A [INAUDIBLE] PRACTICAL QUANTIFICATION LIMIT. AND SO IF THOSE CHANGE ACCORDING TO THE LABS. IF THOSE CHANGE, YOU CAN THEORETICALLY CHANGE SOME OF THE THRESHOLDS THAT REQUIRE YOU TO BASICALLY HAVE CERTAIN [INAUDIBLE] IF THERE'S SOME THRESHOLD SO YOU CAN ADJUST THOSE BASED ON A LARGER DATABASE. SO THE LIMITS OF THE STORAGE. NO IT'S THE LIMIT OF THE CONSTITUENT LEVELS, MEANING A CONSTITUENT IS POLLUTANTS. YEAH, CONTAMINANTS. SO A CONSTITUENT IS A CONTAMINANT. YEAH. I KNEW THAT WAS GOING TO BE A. SO RRY I WASN'T FOLLOWING AT ALL. NO, THAT'S GOOD. NO IT'S. YEAH. THE CONTAMINANTS IN THE WATER. SO YOU KNOW, YOU TAKE A SAMPLE AND YOU GET A CERTAIN CONTAMINANT AND YOU LOOK AT WHAT THE CONCENTRATION OF THAT WAS PREVIOUSLY AND YOU CAN DO SOME STATISTICS. YES. I HAVE A DIFFERENT DEFINITION OF CONSTITUENTS. [LAUGHTER] I GUESS YOU WOULD. JUST TO FURTHER SIMPLIFY THAT. WHAT WE'RE LOOKING AT BASICALLY IS CHANGES IN THE GROUNDWATER WELLS OVER TIME AND BEING ABLE TO CORRELATE WHETHER THAT'S RELATED TO THE LANDFILL OR MAYBE SOMETHING ELSE IN THE [01:10:03] BACKGROUND IN THE GROUNDWATER THAT EXISTS IN THE AQUIFER. TASK THREE IS DRONE SURVEYING AND AIRSPACE CALCULATIONS. SO WHAT THIS BASICALLY IS, IS BLAIR SAID THAT THE LANDFILL CREATES QUITE A BIT OF REVENUE. AND WHAT WE'D LIKE TO DO IS UTILIZE THAT SPACE TO THE BEST OF OUR ABILITIES. SO WE CREATE THAT SPACE AND IT EXISTS FOR SALE TO CONSTITUENTS HERE IN ORDER TO BE ABLE TO DISPOSE OF THAT TRASH. AND WE IN ORDER TO REALLY DO LIKE A PERFORMANCE REVIEW, WHAT WE DO IS WE LOOK AT HOW WELL WE'RE PLACING THAT TRASH IN THAT THAT VOLUME OF AIR SPACE. AND SO THIS GIVES US THE ABILITY TO ESSENTIALLY SURVEY AND LOOK AT HOW WELL WE'RE UTILIZING THE AIRSPACE AND ALSO MAKE BUDGETARY DECISIONS, FORECASTING CONSTRUCTION EVENTS AND THINGS LIKE THAT DOWN THE ROAD. WE OFFERED IN HERE THE OPPORTUNITY TO DO THIS ON A MONTHLY BASIS OR A QUARTERLY BASIS. AND IT JUST KIND OF DEPENDS ON AS THE WASTE GENERATION EBBS AND FLOWS THROUGHOUT THE YEAR. TASK 4 IS THE ANNUAL QUARTERLY AND ANNUAL VOLUME REPORTING THIS REQUIRED BY TCEQ. SO THIS IS ESSENTIALLY A REPORT THAT'S PREPARED BOTH BY THE LANDFILL AND THE TRANSPORTATION TRANSFER STATION. IT'S SUBMITTED TO TCEQ. THE QUARTERLY REPORT SHOW HOW WE PAY OUR SOLID WASTE FEES TO THE STATE. THAT'S 94 CENTS PER TON THAT HAS COLLECTED BY THE CITY THAT THEN GETS PAID TO T CEQ. AND THEN THE ANNUAL REPORT IS ESSENTIALLY JUST A A SURVEY. WE LOOK AT HOW WELL YOU'RE UTILIZING YOUR AIR SPACE BASED ON THAT DRONE SURVEY FROM BEFORE, AND THAT'S SOMETHING THAT T CEQ PREPARES AND THEN SUBMITS TO EPA JUST TO KIND OF GIVE THEM A STATUS OF THE SOLID WASTE INDUSTRY IN TEXAS. AND TASK FIVE RELATED TO HOW WELL WE ARE ABLE TO UTILIZE THE AIR SPACE AT THE LANDFILL. ONE OF OUR OPTIONS. SO VERY QUICKLY, EVERYDAY YOU HAVE TO PUT AT LEAST SIX INCHES OF CLEAN SOIL THAT'S NEVER TOUCHED TRASH OVER THE OPEN WASTE AT THE LANDFILL. AS YOU CAN IMAGINE, IT'S PRETTY HARD. FIRST OF ALL, TO PUT SIX INCHES, YOU END UP PUTTING A FOOT AND SOMETIMES MORE ON IT. IT TAKES UP QUITE A BIT OF VOLUME. SOMEWHERE BETWEEN 20 AND 25 PERCENT OF YOUR LANDFILL. YOU'RE ESSENTIALLY PUTTING SOIL BACK IN IT. SO THERE'S AN OPPORTUNITY THROUGH TCEQ TO USE AN ALTERNATE DAILY COVER IN THIS CASE, IT'S SOMETHING THAT'S KIND OF A SPRAY LIKE A HYDRA MULCH TYPE OF APPLICATION. YOU'RE ALLOWED TO USE THAT SIX DAYS A WEEK WITH THE SEVENTH DAY HAVING TO COVER IT WITH SOIL. AND SO IT GIVES US AN OPPORTUNITY TO PUT A THIN LAYER OVER THE TRASH AND NOT CONSUME MOST OF OUR LANDFILL AIRSPACE WITH SOIL. QUESTION HAVE WE EVER DONE THAT BEFORE? WE HAVE. WE'VE STARTED. SO THE CITY UTILIZES SOME EQUIPMENT LIKE THIS TO HELP KEEP THE WINDBLOWN LITTER DOWN. THEY'VE GOT A TRUCK WITH THIS APPLICATOR ACTUALLY ALREADY MOUNTED TO IT. AND SO WE'VE LOOKED AT THIS BEFORE. THIS PROCESS WOULD BE GOING THROUGH AN AUTHORIZATION PERIOD WITH TCEQ AND THEN GETTING A PERMIT MODIFICATION APPROVED SO THAT YOU CAN ACTUALLY DO IT FULL TIME. THE NEXT TASK IS A BIT BIGGER, AND IT GOES TO BLAIR'S TALKING ABOUT LOOKING AT THE OPERATIONS OF THE LANDFILL AND A LITTLE MORE DETAIL AND DETERMINING SOME EFFICIENCIES AND SOME BETTER MANAGEMENT PRACTICES AT THE LANDFILL, THAT'S GOING TO BE SPENDING SOME TIME ON SITE AND INTERVIEWING THE OPERATIONS PEOPLE THERE. IT'S GOING TO CULMINATE IN A REPORT IN THE IN THE SUBMITTAL PACKAGE THAT WE GAVE TO THEM. THERE'S KIND OF A MORE DETAILED TABLE OF CONTENTS DESCRIBING ALL THE SECTIONS OF THE REPORT, BUT IT GOES INTO A LOT OF DETAIL OF VARIOUS THINGS INVOLVED WITH OPERATING A LANDFILL. AND THEN AT THE END OF THAT, ONE THING THAT WE DO KNOW IS AN ISSUE, EVEN BEFORE WE GO IN AND DO THIS DETAILED OPERATIONAL REVIEW IS THE COMPACTION AT THE LANDFILL. SO AS TODD WAS TALKING ABOUT AIRSPACES, KIND OF THE MOST IMPORTANT THING AT A LANDFILL. AND SO YOU HAVE TO COMPACT THE TRASH AS IT COMES IN. AND SO WE'RE GOING TO OFFER SOME TRAINING FROM PEOPLE FOR THE GUYS THERE AND FOR ANYONE WHO WANTS IT OR IT BEING THE OPERATORS AT SITE OR OTHER STAFF. SO THAT'S THE FIRST HALF OF THIS TASK. THE SECOND HALF OF THIS TASK IS LOOKING AT LONG TERM PLANS. [01:15:03] HOW ARE YOU, AS BLAIR SAID, WHERE ARE WE GOING TO PUT ALL THE TRASH THAT'S COMING IN? YOU KNOW, WHAT'S THE MOST EFFICIENT WAY OF DOING IT? AND THERE'S TWO WAYS OF LOOKING AT IT. ONE IS KIND OF A LONGER TERM, FIVE TO SEVEN YEARS DOWN THE ROAD. WE DO THAT AND A LOT OF OUR CLIENTS. REALLY DO APPRECIATE A LITTLE BIT MORE OF AN INTERIM PLAN AS WELL, SO THAT THE GUYS CAN KNOW EXACTLY WHAT ELEVATIONS ARE TRYING TO HIT, EXACTLY WHEN, WHERE THE ROADS NEED TO BE, STORMWATER ISSUES AND THINGS LIKE THAT. SO THOSE ARE THE TWO KIND OF PLAN SETS THAT ARE COME OUT OF COME OUT OF THIS TASK. AND THEN THE LAST PLAN SET IS GOING TO PIGGYBACK ON THOSE. AND THAT'S THE GAS WELLS. WHAT ARE WE GONNA DO WITH THE GAS WELLS? AND KIND OF RATHER THAN REACTIVELY RAISING THEM, WE'RE GONNA KIND OF LOOK AT AT PRO-ACTIVE SOLUTIONS ON THOSE. AND SO. SO THOSE THREE ARE KIND OF THE DESIGN ASPECTS LOOKING FORWARD. AND THEN FINALLY, THE LAST TASK IS JUST A MISCELLANEOUS TASK. SO THIS WOULD BE ANYTHING THAT COMES UP OVER THE NEXT YEAR A SOLID WASTE MANAGEMENT SYSTEMS ARE LIVING, BREATHING, EVER CHANGING THINGS. AND SO TCEQ REGULATIONS CHANGE THE REPORTING AND RECORD KEEPING REQUIREMENTS MAY CHANGE. AND THIS JUST GIVES US AN OPPORTUNITY TO HAVE A PLACE TO PUT THOSE ITEMS, TO BE ABLE TO MAKE SURE THAT WE DON'T MISS ANYTHING. COMPLIANCE DEADLINES AND THINGS LIKE THAT IN ORDER TO MAKE SURE THAT WE KEEP EVERYTHING TOGETHER. ALSO, T CEQ HAS BEGUN A NEW INITIATIVE RECENTLY TO START DOING A COMPLIANCE VALUATION INVESTIGATION AT EVERY LANDFILL IN THE STATE ON A THREE YEAR ROTATION. I THINK THE FACILITY HAD THEIRS LAST YEAR, SO WE DON'T ANTICIPATE ANOTHER ONE VERY SOON. BUT THAT'S BASICALLY WHERE THE REGION INSPECTORS COME OUT AND REVIEW SITE OPERATIONS, MAKE SURE THAT YOU'RE DOING EVERYTHING THAT YOU'RE PERMITTED TO DO. SO WE'VE GOT, YOU KNOW, SOMETHING IN HERE. WE'VE DONE SOME MOCK INVESTIGATIONS BEFORE WHERE WE TRY AND ANTICIPATE PROBLEMS THAT MIGHT GET CAUGHT ON THE FRONT END SO THAT WE'RE ABLE TO FIX THEM BEFORE TCEQ COMES OUT AND THINGS LIKE THAT. SO JUST KIND OF A CATCH ALL. BLAIR, I THINK READY FOR YOU. AND LET'S HAVE MORE QUESTIONS. DO YOU HAVE ANY QUESTIONS FOR THE CONSULTANTS BEFORE THEY SIT DOWN. THANK YOU. THANK YOU. THANK YOU. I JUST HAVE THIS ONE LAST SLIDE AND IT BREAKS DOWN THE COST FOR EACH OF THOSE TASKS THAT THEY JUST REVIEWED WITH YOU. AND THEN, OF COURSE, WHEN WE COME BACK TO YOU FOR APPROVAL, YOU'LL HAVE THE ENTIRE AGREEMENT IN YOUR PACKET TO REVIEW. DO YOU HAVE ANY QUESTIONS FOR ME? I JUST HAVE A QUESTION ON IN GENERAL, ARE OUR LANDFILL COSTS COVERED BY OUR FEES? IS THIS SOMETHING THAT WE SUBSIDIZE AS A CITY OR WE COVER? NO LANDFILL COSTS THESE PROFESSIONAL SERVICES ARE COVERED BY REVENUES FROM SERVICES RENDERED. AND AS WE BEGAN DISCUSSIONS OF CONSTRUCTION OF A NEW CELL. HOW DO YOU PAY FOR THAT? HOW DO YOU PLAN FOR THOSE EXPENSES? BECAUSE I'M GUESSING THEN WE END UP FRONTING THE EXPENSES. THEN OVER TIME, FEES COVER IT. BUT CAN YOU TALK US THROUGH THAT LITTLE BIT? WE'RE NEVER GONNA BE FRONTING ANYTHING. THE REVENUES FROM SERVICES ARE ALWAYS GOING TO COVER ALL THE EXPENSES THAT ARE TAKING PLACE IN ANY GIVEN YEAR. PART OF THIS IS GOING TO HELP US PLAN OUT WHERE OUR NEXT CELL IS GOING TO BE. IT'S NOT JUST A DEAL WHERE WE PUT A CELL RIGHT NEXT TO OUR CURRENT CELLS BECAUSE WE HAVE SOME TOPOGRAPHICAL AND SOME MATERIAL RESTRICTIONS. I THINK THAT'S ROCK AND THEN WE'VE GOT OTHER AREAS THAT ARE DIRT. SO DIGGING OUT THAT ROCK AREA THAT'S RIGHT NEXT TO OUR EXISTING CELLS MIGHT NOT BE COST EFFECTIVE. SO WE MADE SKIP THAT AND GO TO A DIFFERENT AREA THAT'S A LOT LESS EXPENSIVE AND LESS CUMBERSOME TO GET INTO AND BUILD THAT CELL. SO THESE SERVICES ARE GOING TO HELP US 1 BE COMPLIANT, WHICH IS MOSTLY WHAT THIS IS, IS COMPLIANCE WITH TCEQ A=ND MAKING SURE THAT WE'RE OPERATING THE LANDFILL SAFELY AND MAKING ALL THE REPORTING NECESSARY TO T CEQ AND OTHER FEDERAL AGENCIES. SO THIS KEEPS US LEGAL AND ALSO HELPS US PLAN OUT WHERE WE'RE GONNA GO AND WHAT WE'RE GONNA DO. BUT IT ALSO HELPS US KNOW DO WE HAVE OUR FEE STRUCTURES SET UP APPROPRIATELY TO BE ABLE PAY FOR BOTH CURRENT AND KNOWN FUTURE EXPENSES. SO THE LONG TERM OBJECTIVE IS TO MAKE SURE THAT WHATEVER WE'RE CHARGING IS ADEQUATE TO WHATEVER WE EXPECT TO BE PAYING TO PROVIDE THAT LANDFILL SERVICE AND WE'RE NOT GOING TO BE SUBSIDIZING IT THROUGH PROPERTY TAXES OR SOMETHING LIKE THAT. AND SO THE HORIZON FOR THE PLAN, IN CASE I MISS THAT, HOW FAR OUT ARE WE TRYING TO PROJECT? ARE WE LOOKING AT WHAT OUR NEEDS OVER THE NEXT THREE YEARS, 10 YEARS, 15 YEARS? YES. THIS STUDY SPECIFICALLY WILL NOT GO OUT THAT FOR HOW MANY YEARS DID YOU SAY? FIVE YEARS. YES. AND JUST TO ADD TO WHAT MR. MILLER WAS SAYING, WE DO HAVE A FUND SET ASIDE FOR FUTURE DEVELOPMENT OF THE LANDFILL. [01:20:04] BUT THIS WILL HELP US KNOW HOW MUCH WE NEED TO BE PUTTING BACK IN THAT FUND EACH YEAR TO KEEP UP WITH THE DEMANDS. AND WE WILL, OF COURSE, HAVE TO RE EVALUATE IN A FEW YEARS AGAIN, ONCE WE HAVE DEVELOPED THE NEXT CELL. AND THEN WE'RE LOOKING AT I KNOW WE'RE TALKING, YOU KNOW, A FIVE YEAR PLAN RIGHT NOW OR LOOKING AT A FIVE YEAR HORIZON. BUT CONCURRENTLY, WE'RE ALSO LOOKING AT MUCH, MUCH, MUCH LONGER HORIZONS BECAUSE THIS IS OVER A 100 YEAR ASSET. WE'RE ALSO LOOKING AT ACQUIRING LAND BOTH ON THE NORTH AND SOUTH SIDE OF OUR EXISTING LANDFILL SO THAT WE HAVE ADEQUATE EXPANSION SPACE AND MAKING SURE THAT WE CAN CONTINUE THIS ASSET GOING FORWARD. WE'RE ALSO LOOKING, AS WE SAID, ALTERNATE DAILY COVER, WHICH CAN EXTEND THE LIFE OF THE SPACE THAT WE CURRENTLY HAVE. BECAUSE WHEN YOU LOOK AT THE AMOUNT OF VERTICAL SPACE YOU TAKE UP WITH ANY DIRT DAILY COVERED, WHAT IS IT, SIX INCHES? I THINK SO. MINIMAL. IF YOU BURN UP 6 INCHES EVERY DAY OF JUST NOT WASTE. IT'S JUST DIRT. YOU KNOW, ALTERNATE DAILY COVER CAN CUT THAT ALMOST ENTIRELY AWAY BECAUSE THE ALTERNATE DAILY COVER IS ALMOST NOTHING. SO WHAT. THAT SPRAY? YES, YES. THAT SPRAY THAT THAT CREATES A MEMBRANE ABOVE THE WASTE THAT'S ALREADY BEEN COMPACTED. SO WE'RE LOOKING BOTH AT WAYS TO EXPAND THE LANDFILL AND MANAGE LANDFILL GOING FORWARD FOR A VERY LONG TIME AND WAYS TO MAKE SURE THAT WHAT WE CURRENTLY HAVE CAN LAST MUCH LONGER. SO, YES. AND THAT WAS THE COMPACTION PIECE. THEY TEACH US HOW TO GET MORE TRASH INTO A SPACE AND THAT WILL HELP AS WELL. AND THEN THE DRONE SURVEYS THAT TELLS US HOW WELL WE'RE DOING AT COMPACTING THE TRASH. COUNCIL, ADDITIONAL QUESTIONS FOR BLAIR TODD OR JOEL? NO. OK. THANK YOU ALL. TODD AND JOE, WE APPRECIATE YOU ALL BEING HERE. THANK YOU AGAIN. OK, WE'RE DOWN TO ITEM F ON THE AGENDA REQUEST OF FUTURE AGENDA ITEMS [F. Request future agenda items and reports from City Manager.] AND REPORTS FROM THE CITY MANAGER, COUNCIL. DOES ANYONE HAVE ANYTHING? NO. OK. SO, MR. CITY MANAGER, I KNOW THAT ON FRIDAY WE HAD A THE CITY DID A RELEASE ON THE CORONA VIRUS IN REGARDS TO PREVENTION MEASURES THAT WE CAN TAKE. IS THERE GOING TO BE SOME SORT OF A PRESENTATION GOING FORWARD IN REGARDS TO THE PREPAREDNESS OF OUR CITY? ABSOLUTELY. WE'RE GOING TO BE. WE WILL BRING A PRESENTATION TO COUNCIL IN THE VERY NEAR FUTURE ON THE LATEST OF HOW PEOPLE CAN MAKE SURE THAT THEY ARE PROTECTING THEMSELVES FROM ANY POSSIBLE CONTRACTION OF THE VIRUS. OBVIOUSLY IT'S NOT IN TEXAS YET, BUT WE WANT TO MAKE SURE THAT WE'RE BEING PREPARED AND COMMUNICATING AS MUCH AS POSSIBLE. WE'RE ALSO LOOKING AT THROUGH ONE OR MORE NEWS OUTLETS DOING AN INFORMATIONAL SESSION WHERE WE BRING IN OUR OUR HEALTH DIRECTOR AND OUR PUBLIC HEALTH DIRECTOR S O OUR EMPLOYEE, [INAUDIBLE], ALONG WITH THE DOCTOR WHO IS THE AREA HEALTH DIRECTOR AND OTHER EMPLOYEES OR OTHER PERSONNEL WHO ARE EXPERTS IN THE AREA TO BE ABLE TO COMMUNICATE BOTH CDC GUIDELINES AND LOCAL GUIDELINES TO HELP PEOPLE BE THE BEST PREPARED AS OR AS WELL-PREPARED AS POSSIBLE TO KEEP THEM SELF SAFE. SO WE WANT TO MAKE SURE TO GIVE THAT INFORMATION. WE'LL HAVE THAT IN VERY SHORT ORDER POSSIBLY AS SOON AS NEXT WEEK HERE AT COUNCIL. BUT WE'VE ALREADY PUT OUT A PUBLIC SERVICE ANNOUNCEMENT AND SOME LITERATURE ON HOW TO PROTECT YOURSELF. AND WE'LL ALSO KEEP PUTTING THAT OUT AS THOSE GUIDELINES REFINE. AND SO IN THAT CONVERSATION, WE'LL TALK ABOUT US AS THE CITY OF AMARILLO BEING PREPARED FOR ANY FOR ANY TYPE OF OUTBREAKS THAT WE MIGHT HAVE. YES MA'AM AND WE WILL CONTINUE TO WE WON'T JUST DO IT ONCE. WE'LL CONTINUE TO DO THAT AND KEEP PUSHING OUT THAT INFORMATION AS LONG AS IT'S RELEVANT. OK. THANK YOU, MR. CITY MANAGER. OK, THAT CONCLUDES THE ITEMS ON OUR AGENDA. WE DO HAVE AN EXECUTIVE SESSION. [2. EXECUTIVE SESSION: City Council may convene in Executive Session to receive reports on or discuss any of the following pending projects or matters: 1) Section 551.074 - Discuss the appointment, employment, evaluation, reassignment, duties, and qualifications of a public officer or employee, in accordance with the Texas Open Meetings Act. (a) Discussion of Municipal Court Judge Laura Hamilton's performance evaluation. 2) Section 551.072 - Discuss the purchase, exchange, lease, sale, or value of real property and public discussion of such would not be in the best interests of the City's bargaining position: (a) Discuss property located within the Tax Increment Reinvestment Zone #1 Boundary.] I'LL ASK THE CITY ATTORNEY IF HE WOULD READ OUR SPECIAL LANGUAGE FOR THIS SESSION. GLAD TO . SO THE TEXAS OPEN MEETINGS ACT CLOSED SESSION AMARILLO CITY COUNCIL WAS ANNOUNCED ON MARCH THE 3RD AT 2:25 P.M. UNDER THE FOLLOWING AUTHORITY. SECTION 551 .072 DISCUSS THE [INAUDIBLE] 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 551.074 DISCUSSED APPOINTMENT, EMPLOYMENT, EVALUATION AND DUTIES OF A PUBLIC OFFICER OR EMPLOYEE. THANK YOU, MR. CITY MANAGER. WE WILL NOW GO IN. * This transcript was compiled from uncorrected Closed Captioning.