THERE WAS NO ACTION TAKEN DURING EXECUTIVE SESSION. THERE WILL BE NO ACTION TAKEN NOW. MOTION TO 
          [I) Call Meeting to Order, Roll Call, and Excuse Absences]
          [00:00:04]
ADJOURN. ALL RIGHT. WE ARE ADJOURNED. GOOD EVENING EVERYONE. THE TIME IS 7:02 P.M. 
          IT IS TUESDAY, AUGUST 19TH, AND I'M GOING TO CALL THIS REGULARLY SCHEDULED CITY COUNCIL MEETING TO ORDER. WOULD ALL PLEASE RISE FOR THE PLEDGE OF ALLEGIANCE. PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. WITH THE CITY SECRETARY, PLEASE CALL THE ROLL. 
          MITCHELL HERE, HEIZER HERE. HERE. RIZZO. PRESENT. ZUNIGA. PRESENT. HARRIS HERE. MCKINNEY. 
          HERE. PRESENT. ALL RIGHT. ALL MEMBERS ARE PRESENT. WE HAVE A QUORUM. NEXT UP IS APPROVAL OF 
          [II) Approval of Minutes]
THE MINUTES. MAYOR, I'D LIKE TO GO AHEAD AND MAKE A MOTION TO APPROVE THE MINUTES FOR CITY COUNCIL MEETING FROM AUGUST 5TH, 2025, INCLUDING SPECIAL MEETING FOR THE SAME DATE AND ALSO THE SPECIAL MEETING MINUTES FOR AUGUST THE 13TH, 2025 SECOND. ALL RIGHT. IT'S BEEN MOTION BY COUNCILMEMBER TOBIA, SECONDED BY COUNCILMEMBER MCKINNEY, THAT WE APPROVE THE MINUTES. IS THERE DISCUSSION ON THAT MOTION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED. ALL RIGHT. MOTION 
          [III) Citizen Comment Period with City Council]
CARRIES 7 TO 0. NEXT UP IS CITIZEN COMMENTS. PERIOD. AT THIS TIME, WE ASK ANYONE IN THE AUDIENCE WHO WISHES TO COME FORWARD AND SPEAK ON ANY ITEM TO PLEASE DO SO. WE ASK THAT YOU LIMIT YOUR COMMENTS TO THREE MINUTES AND THAT YOU DIRECT THOSE COMMENTS TO THE MAYOR AND COUNCIL. WE ALSO ASK THAT YOU FILL OUT A CITIZEN COMMENTS FORM AND SUBMIT THAT TO EITHER MYSELF OR THE CITY SECRETARY. I HAVE SEVERAL FOLKS REGISTERED TO SPEAK. FIRST UP IS ALI BARKHAM. 
          HELLO EVERYBODY. THANK YOU ALL FOR YOUR TIME. REALLY APPRECIATE IT. I'M ALI BARKHAM AND I'M A TEXAS MASTER NATURALIST. AND I'M HERE TO SHARE WITH YOU ABOUT A PROGRAM CALLED THE CENTRAL TEXAS PLANT RESCUERS. WE'RE A NONPROFIT COLLABORATION BETWEEN THE BALCONES CANYONLANDS AND THE CAPITAL AREA MASTER NATURALISTS, AND WE WORK WITH PROPERTY OWNERS TO GET CONSENT SO WE CAN COLLECT SEED AND DIG AND MOVE IMPORTANT PLANTS BEFORE CLEARING FOR CONSTRUCTION. HAYS COUNTY HAS TWO BIG ECO REGIONS. WE HAVE BLACKLAND PRAIRIE AND EDWARDS PLATEAU. AND AS MUCH AS DEVELOPMENT IS REALLY RAPID, IT'S THE WEST SIDE OF TOWN THAT HAS MORE THAN 51 SPECIES OF GREATEST CONSERVATION NEEDS. SO LIKE A REALLY BIG DEAL. AND A LOT OF THESE THINGS, WE CAN MOVE THOSE PLANTS AND COLLECT THOSE SEEDS SO WE CAN PRESERVE THOSE CRITICAL, UNIQUE LITTLE SPECIES THERE. TEXAS ACTUALLY HAS LIKE A REALLY HIGH NUMBER OF ENDEMIC SPECIES. AND ENDEMIC MEANS IT'S HYPERLOCAL. SO IT ONLY LIVES IN THAT VERY SPECIAL TEXAS HABITAT. AND AGAIN, YOU KNOW, COLLECTING THOSE SEEDS, DIGGING THOSE PLANTS, WE CAN SAVE THESE REALLY COOL ENDEMIC THINGS. IT'S A REALLY SPECIAL WAY TO SAVE THE NATURAL HISTORY OF TEXAS, YOU KNOW, LOCALLY BY JUST MOVING THESE THINGS AND COLLECTING THE SEED. OUR VOLUNTEERS TAKE HALF OF THE RESCUED PLANTS THAT THEY DIG AND THEY DIVERSIFY THEIR OWN YARDS. AND THEN THE OTHER HALF OF THOSE THINGS THAT WE DIG AND RESCUE, THEY GET DONATED TO POLLINATOR GARDENS AND PRESERVES THROUGHOUT TOWN. WE'VE HAD THE PLEASURE WITH COLLABORATING WITH YOU GUYS WITH KYLE PARKS. TO DATE, WE HAVE RESCUED THOUSANDS OF PLANTS AND HUNDREDS OF THOUSANDS OF SEEDS, AND THAT MEANS THESE FREE THINGS GET TO GO OUT AND FEED POLLINATORS THROUGHOUT OUR HABITATS. MOST DEVELOPMENTS CAN REALLY TIE INTO THIS SEAMLESSLY. SO WE ARE FREE AND THERE'S NO DELAY. WE WORK SEAMLESSLY WITH DEVELOPER TIMELINES. WE'VE HAD THE PRIVILEGE OF WORKING ACROSS A VARIETY OF DEVELOPMENTS, SO WE'VE WORKED WITH TXDOT, ROAD WIDENINGS LUXURY DEVELOPMENTS LIKE THE FOUR SEASONS, LAKE AUSTIN AND ALSO PUBLIC PARKS. SO AGAIN, LOVE THE PARKS. WE ARE AN INSURED TEAM. WE WORK REALLY FAST AND AGAIN, WE COORDINATE WITH DEVELOPMENT TIMELINES. AND WE JUST WANT YOU GUYS TO SPREAD THE WORD. YOU KNOW, YOU GUYS INTERFACE WITH A LOT OF PEOPLE WITH LAND PROPERTY OWNERS, DEVELOPERS. AND IF YOU CAN JUST LET THEM KNOW OF THIS OPPORTUNITY, WE CAN LIAISE WITH THEM AND MAYBE GO OUT THERE AND COLLECT SOME OF THOSE SEEDS AND DIG THOSE IMPORTANT PLANTS AND GET THEM OUT TO PARKS AND MAKE THEM MORE BEAUTIFUL. YEAH, THAT'S THAT'S OUR MAIN POINTS. 
          SORRY. WE'RE REALLY GRATEFUL TO HAVE CONNECTED WITH KYLE PARKS. AND AGAIN, YOU GUYS WILL WANDER AROUND AND SEE SOME OF THE PLANTS WE'VE RESCUED ON PATHWAYS PARKS AROUND LAKE AUSTIN AND ALL THAT. AND THAT'S HUGE THANKS TO JOHN CALVIN AND THE PARKS TEAM. SO AGAIN, THANK YOU SO MUCH. AND KEEP US IN MIND CENTRAL TEXAS PLANT RESCUERS. WE JUST WANT TO WORK WITH PROPERTY OWNERS AND SAVE THINGS BEFORE IT'S CLEARED. THANKS Y'ALL. AND I WILL LEAVE CARDS OVER THERE SO YOU CAN CONNECT PROPERTY OWNERS WITH US AGAIN. THANK Y'ALL. ALL RIGHT. THANK YOU. ALL RIGHT. NEXT UP IS MICHAEL GRAHAM OR JEREMY. GOOD EVENING TO YOU ALL. AND I JUST WANTED TO RISE TO TALK A LITTLE BIT ABOUT THE PROPOSED WATER TAX INCREASES. AND I'LL POINT OUT THAT I GREW UP 100 MILES FROM 
          [00:05:07]
BOSTON HARBOR, WHERE THE ORIGINAL OBJECTIONS TO THE BRITISH KING'S TYRANNY WAS MOUNTED AT THE BOSTON TEA PARTY. AND THE PATRIOTS WHO STAGED THAT DEMONSTRATION RALLIED PROUDLY AROUND THE CRY OF NO TAXATION WITHOUT REPRESENTATION. THIS BATTLE CRY CRYSTALLIZED THE FOUNDING PURPOSES OF OUR AMERICAN REVOLUTION. TODAY, I RISE TO VEHEMENTLY OBJECT TO THE PROPOSAL TO RAISE THE WATER SEWER TAXES ON THE VARIOUS EXTRATERRITORIAL ENTITIES THAT GET THEIR WATER FROM THE KYLE WATER DEPARTMENT WITHOUT GIVING THESE TAXPAYERS ANY VOTE IN THE MATTER. BY WAY OF. BY THE WAY, I'M MOST PROUDLY RECEIVED MY MAIL AT KYLE ADDRESS. WHAT MAKES THIS EVEN MORE EGREGIOUS IS THAT IN CITY, RESIDENTS ARE ONLY BEING CHARGED INCREASES OF 20% FOR WATER AND 6% FOR SEWER. IN WHAT WORLD IS THIS FAIR? IN ESSENCE, THE 70% INCREASE THAT'S BEING PROPOSED FOR EXTRATERRITORIAL RESIDENTS AND THE 35% INCREASE IN SEWER TAXES IS UNREASONABLE. WE ARE BEING FORCED TO SUBSIDIZE THE CITY USERS WITHOUT HAVING A VOTE IN THE MATTER. I CAN UNDERSTAND THERE MAY BE A NEED TO INCREASE WATER TAXES. THAT IS NOT MY ISSUE HERE TONIGHT. I COULD ARGUE IT AT SOME FUTURE DATE, BUT. BUT TONIGHT IT'S TO REMIND YOU OF THE ESSENTIAL CALL OF THE BOSTON PATRIOTS IN 1773 AGAINST THE TYRANNY OF THE KING AT THE MOMENT OF THE BIRTH OF THE AMERICAN EXPERIENCE. NO TAXATION WITHOUT REPRESENTATION. THAT'S A CRY THAT WE REALLY NEED TO THINK ABOUT. PUT THE USERS PUT THE ISSUE TO A VOTE THAT ALL WATER USERS CAN PARTICIPATE IN. THANK YOU, THANK YOU. ALL RIGHT. NEXT UP IS ELLEN HERMES. HI. MY NAME IS ELLEN HERMES, I LIVE AT 5944 STEINER. AND THIS THURSDAY IS KYLE. I MEAN NATIONAL SENIOR CITIZENS DAY. AND WE WANTED TO INVITE COUNCIL AND ALL SENIORS IN THE COMMUNITY TO A LUNCHEON. 
          12 TO 2 OVER HERE AT THE ACTIVITY CENTER. WE THANK YOU FOR YOUR SERVICE AND THE TIME AND DEDICATION THAT YOU PUT INTO THESE JOBS, AND WE HOPE YOU'LL JOIN US THURSDAY. THANK YOU. ALL RIGHT. NEXT UP IS MELISSA MEDINA. GOOD EVENING, MAYOR AND COUNCIL. WE MEET AGAIN TO TALK ABOUT PROJECT SAHARA. I LIVE RIGHT ADJACENT, LITERALLY RIGHT NEXT DOOR TO THE PROPOSED 99 ACRE PROJECT SAHARA. AND I WANT TO START BY SAYING HOW MUCH I DO APPRECIATE THE COUNCIL'S PRIOR DECISION NOT TO MOVE FORWARD WITH THE ORIGINAL DEVELOPER, PARTICULARLY BECAUSE THEY REFUSED TO COMMIT TO BUILDING A CERTAIN PERCENTAGE OF COMMERCIAL SPACE IN EACH PHASE BEFORE MOVING FORWARD WITH HOMES. THAT COMMITMENT IS ESSENTIAL TO GROWTH IN EAST KYLE. NOW WITH THIS NEW DEVELOPER BASED ON THE BACKUP MATERIALS, WE SEE SOME IMPROVEMENTS, BUT ALSO SOME OF THE SAME CONCERNS. WHILE THE PROPOSAL TO BUILD 960 NEW HOMES DOES INCLUDE SINGLE FAMILY, MULTIFAMILY AND MARKET RATE HOMES, THAT'S A MASSIVE NUMBER OF NEW HOMES, ESPECIALLY WHEN YOU CONSIDER THE NEW CONSTRUCTION NEIGHBORHOOD DIRECTLY BEHIND US ON 158 AND THE CURRENT HOUSING INVENTORY. JUST TODAY. LOOKING ON REALTOR.COM, THERE'S NEARLY A THOUSAND EXISTING HOMES. PEOPLE HAVE ALREADY LIVED IN HOMES FOR SALE IN KYLE AND OVER A THOUSAND NEW CONSTRUCTION HOMES ARE ALREADY AVAILABLE. AND THAT'S NOT INCLUDING THE ADDITIONAL HOMES BEING BUILT AS WE SPEAK THAT AREN'T READY TO MOVE IN. AND MANY OF THESE ARE JUST SITTING ON THE MARKET. A HOUSE JUST DOWN THE STREET FROM ME HAS BEEN LISTED ON MARKET FOR OVER SIX MONTHS. SO I HAVE TO ASK, DO WE REALLY NEED ANOTHER 960 HOMES RIGHT NOW? ONE POSITIVE I WILL HIGHLIGHT IS THAT THE DEVELOPER HAS AGREED NOT TO MOVE TO PHASE TWO UNTIL RETAIL AND PHASE ONE IS COMPLETE. ONE QUESTION THOUGH WE WOULD HAVE TO ASK IS, DOES COMPLETE MEAN THEY ONLY HAVE TO BUILD A BUILDING FOR THE RETAIL? OR DOES THAT MEAN THAT THE TENANT HAS TO AGREE TO MOVE IN AND THOSE TALKS ARE COMPLETE SO THAT WE KNOW SOMEONE'S ACTUALLY MOVING INTO THE BUILDING, AND IT'LL BE USED IN TOTAL, 70,000FT■!S OF RETAIL IS PROPOS. IT'S SPLIT ACROSS THREE PHASES. 
          WE HAVE 15,000FT■!S IN PHASE ON, 35,000FT■!S IN PHASE TWO AND 20,000 IN PHASE THREE. BUT LET'S PUT THAT INTO A LITTLE PERSPECTIVE. THEY LIST BUSINESSES LIKE PLANET FITNESS, 
          [00:10:04]
WHICH TYPICALLY AVERAGES 20,000 SQUARE FOOT. THAT ALONE TAKES UP ALL OF PHASE THREE SPACE. I'M NOT SURE ANOTHER GYM IS NECESSARILY THAT IMPORTANT TO EAST KYLE, BUT I COULD BE WRONG. 
          SHIPLEY'S DONUTS. WHILE WE ALREADY HAVE A GREAT LOCAL DONUT SHOP DOWN ON 150 RIGHT THERE ON LEEMAN ROAD. SO REALLY ANOTHER DONUT SHOP? NOT NECESSARY A COFFEE SHOP. SURE WE HAVE STARBUCKS, BUT WE DON'T HAVE ANYTHING ELSE ON THE EAST SIDE. WE DO HAVE MANY THROUGHOUT THE REST OF KYLE, AS YOU ALL KNOW, RESTAURANTS DEFINITELY THIS SIDE OF TOWN COULD REALLY BENEFIT FROM MORE SIT DOWN TYPE FOOD OPTIONS. NOT NECESSARILY JUST FAST FOOD, BUT LET'S TALK ABOUT THE GROCERY ANCHOR. A JOVIS IS A GREAT OPTION THERE, OWNED BY HEB, BUT THE AVERAGE 55,000 SQUARE FOOT ALDI IS SMALLER, AND THEY AVERAGE MORE THAN THAT. BUT A POCO LOCO IS THE SAME SIZE OR LESS THAN AN ALDI'S, SO THAT DOESN'T REALLY GIVE US A GREAT OPTION. WAS THAT THREE MINUTES ALREADY? ALL RIGHT. NEXT UP IS SANDY GONZALEZ. 
          SO MY NAME IS SANDY GONZALEZ AND I'M A RESIDENT. I'VE BEEN HERE FOR MORE THAN 22 YEARS. I WANTED TO SAY FIRST, THANK YOU TO THE PARKS DEPARTMENT FOR FOLLOWING THROUGH ON THE APPLICATION TO THE TREE CITY, USA. AND I MAY HAVE THAT NAME WRONG, BUT IT'S SOMETHING SIMILAR. AND SO ANYWAY, THANK YOU, DAVID LOPEZ. AND THE SECOND THING I WANTED TO SAY IS I'M STILL DEEPLY CONCERNED ABOUT THE WATER AND THE WATER SHORTAGE IN THE WHOLE STATE, NOT JUST KYLE, BUT THE WHOLE STATE. YES, WE HAD TORRENTIAL RAINS IN JULY, BUT THE AQUIFERS ARE NOT FULL. THE HIGHLAND LAKES BENEFITED TREMENDOUSLY, BUT THE AQUIFERS DID NOT AND WILL NOT BECAUSE THEY CONTINUE BEING SIPHONED OFF. SO, KYLE RESIDENTS, I'VE BEEN HERE, LIKE I SAID, MORE THAN 22 YEARS WHEN I FIRST MOVED HERE. I HAVE A SMALL LOT. I WAS PAYING ABOUT $44 FOR MY TINY LOT OVERNIGHT, MAYBE ABOUT TWO YEARS AFTER BEING HERE. THE FEES WENT UP FROM PRACTICALLY DOUBLED FROM ABOUT 44 AT THAT TIME TO ALMOST 80. I CALLED THE CITY AND I ASKED WHY, AND THE ANSWER I GOT WAS, WELL, EVERYBODY'S RATES WENT UP. SO THAT'S JUST THE WAY IT IS. SO KYLE, RESIDENTS WITHOUT AGREEING TO THIS, HAVE BEEN SUBSIDIZING THE ETJ SUBDIVISIONS FOR THE EXPANSION OF OUR WATER AND SEWER LINES INTO FOR THEIR BENEFIT. I, I DON'T BELIEVE THAT WE WERE EVER ASKED TO DO SO, BUT THIS HAS BEEN HAPPENING AND IT'S WRONG. IT IS NOT FAIR. I, AND I HOPEFULLY I'M NOT ONE OF THE FEW RESIDENTS. I HOPE THERE'S MANY MORE WHO DON'T AGREE THAT IT'S FAIR TO CONTINUE TO ASK US, AS KYLE RESIDENTS, TO PAY TAXES HERE, TO CONTINUE SUBSIDIZING SERVICES TO THOSE SUBDIVISIONS. THEY DO NEED TO PAY THEIR FAIR SHARE. THEY DON'T PAY CITY TAXES. I KNOW THEY DON'T VOTE. BUT, YOU KNOW, MAYBE HOPEFULLY THAT CAN BE EXTENDED TO THEM. 
          BUT IF THEY DON'T PAY CITY TAXES, THEN THEY NEED TO PAY SOMEHOW BECAUSE IT'S NOT FAIR THAT THE REST OF US CARRY THAT BURDEN WITH OUR ALREADY HIGH RATES. MY RATE NEVER GOES BELOW $125 FOR MY TINY LOT, SO THANK YOU. I HOPE YOU CONSIDER THAT ALL RIGHT. THANK YOU. ALL RIGHT. 
          NEXT UP IS STEPHANIE MCDONALD. GOOD EVENING, MEMBERS OF COUNCIL. I'D LIKE TO BEGIN BY THANKING COUNCIL MEMBER TOBIAS FOR HOLDING A TOWN HALL ON AUGUST 2ND, 2025. FOR THOSE WHO MISSED IT, IT CAN BE VIEWED ON HAYS PRESS HAYS FREE PRESS WEBSITE. RESIDENTS HAD BEEN ASKING THE MAYOR FOR TOWN HALL MEETING FOR OVER A YEAR, TO NO AVAIL. I'M THANKFUL FOR COUNCIL MEMBER TO HIS COMMITMENT TO LISTENING AND INTERACTING WITH THE RESIDENTS OF KYLE. IN THIS TYPE OF SETTING, YOU DO NOT KNOW WHAT TYPE OF QUESTIONS YOU'LL GET AND WHAT YOU WILL HAVE TO ANSWER THEM. UNLIKE CITIZEN COMMENT PORTION OF TONIGHT'S MEETING WHERE YOU CAN SPEAK AND NOT RECEIVE ANSWERS. ALTHOUGH THE COUNCIL IS ALLOWED TO ANSWER IN A VARIETY OF WAYS, COUNCIL MEMBER TOBIAS ALSO PERSONALLY FUNDED THIS MEETING. THANK YOU, I APPRECIATE IT. I WAS GOING TO PUBLICLY RECOGNIZE THIS AT THE LAST MEETING, BUT UNFORTUNATELY I HAD IT WRITTEN AT THE CLOSE OF MY REMARKS AND RAN OUT OF TIME BEFORE I WAS ABLE TO VOICE MY APPRECIATION. WHEN RESIDENTS SPEAK DURING CITIZEN COMMENTS ON MORE THAN ONE OCCASION, LAW ENFORCEMENT HAS BEEN CALLED TO SILENT SPEECH AND SOME RESIDENTS HAVE BEEN ALLOWED TO SPEAK WELL PAST THEIR THREE MINUTE LIMIT. 
          [00:15:03]
OTHERS HAVE HAD THEIR MICROPHONES TURNED OFF IMMEDIATELY AFTER THREE MINUTES. 
          IT'S INAPPROPRIATE TO DISCRIMINATE, AND IT NEEDS TO STOP IF AND WHEN SOMEONE DECIDES TO TAKE LEGAL ACTION AGAINST THE CITY, ALL OF YOU WILL BE COMPLICIT IF YOU SAY OR DO NOTHING. WHEN THIS DISCRIMINATORY BEHAVIOR IS EXHIBITED. ON ANOTHER NOTE, AT THE AUGUST 5TH COUNCIL MEETING, I SPOKE IN SUPPORT OF THE CHARTER REVIEW COMMISSION'S RECOMMENDATION TO HAVE A WAITING PERIOD FOR MEMBERS OF COUNCIL TO GAIN EMPLOYMENT WITH THE CITY WHEN THEY LEAVE THE COUNCIL. I APPLAUD COUNCIL MEMBER TOBIAS ZUNIGA FOR LISTENING TO THE CHARTER REVIEW COMMISSION. THIS WAITING PERIOD IS NOT UNCOMMON AND IT'S CERTAINLY NOT A PUNISHMENT. IT'S A SAFEGUARD AGAINST ABUSE AND ENSURES TRANSPARENCY. VOTING ON A BUDGET THAT WILL PAY YOUR SALARY IS NOT APPROPRIATE. WHY ARE YOU AFRAID TO PUT THIS ON THE BALLOT? TO LET PEOPLE DECIDE? I WAS ATTACKED FROM THE DAIS BY MAYOR PRO TEM HEIZER, AS WAS ANOTHER RESIDENT. I'D LIKE TO SAY THAT WE DON'T HAVE A, QUOTE, AX TO GRIND, UNQUOTE. NOR ARE WE, QUOTE, PUTTING PRESSURE ON VARIOUS PEOPLE, END QUOTE. THIS IS ALSO NOT A REACTION TO THE EMPLOYEE THAT WAS MENTIONED. THAT WAS SIMPLY A GREAT EXAMPLE OF HOW DESPERATELY THIS RULE IS NEEDED AND WHAT CAN HAPPEN AND WHAT DID HAPPEN WITHOUT IT. THERE WERE RED FLAGS ALL THROUGHOUT THE EXAMPLE. THIS AGENDA ITEM WAS NOT OUR IDEA, IT WAS THE CHARTER REVIEW COMMISSION'S RECOMMENDATION. WE WERE SIMPLY VOICING OUR OPINION, OUR SUPPORT FOR AN ITEM THAT THE COMMISSION YOU TASKED THIS WITH BROUGHT. THEY BROUGHT FORWARD. JUST BECAUSE OUR OPINION DOESN'T ALIGN WITH YOURS DOESN'T MEAN YOU NEED TO ATTACK RESIDENTS. PLEASE SHOW SOME EMOTIONAL MATURITY. YOU'RE IN A LEADERSHIP POSITION IN OUR CITY AND SHOW RESTRAINT AS WE DO. ITEM 30 THE SPORTSPLEX. WHY PAY FOR THE WHOLE PLAN WHEN YOU'RE ONLY HAVING FUNDING AND SURETY FOR THE OUTDOOR PORTION? INSTEAD OF PAYING FOR COMPREHENSIVE PLAN, WAIT TILL THE APPROPRIATE TIME. 
          THOSE PLANS MAY NEVER COME TO FRUITION. THAT HAPPENED IN 2018 COST US $1 MILLION THAT WAS THROWN AWAY. WHY WASTE THAT MONEY? ALSO PROJECT SAHARA, WE SHOULDN'T BE PAYING FOR ETJ WATER. WE'RE IN A DESPERATE SITUATION, ALTHOUGH WE WERE TOLD FOR A LONG TIME THAT WE'RE NOT. 
          WE ARE. PLEASE MOVE AGENDA ITEMS. I'D ASK THAT THE AGENDA ITEMS 30 AND 31 BE MOVED TO THE TOP OF THE DISCUSSION. THANK YOU, THANK YOU. ALL RIGHT, NEXT UP IS YVONNE FLORESCU. GOOD EVENING, MEMBERS OF COUNCIL. FIRST AND FOREMOST, IF WE COULD MOVE UP AGENDA ITEM NUMBER 33. 
          THE BUDGET IS TOO IMPORTANT OF AN ISSUE TO BE PUT. DID LAST. ALSO, IF I CAN GET EVERYBODY'S ATTENTION, THAT WOULD BE REALLY APPRECIATED. THANK YOU. I'M GOING TO FINISH THE PREVIOUS SPEAKERS SPEECH SINCE SHE RAN OUT OF TIME. LET'S TALK ABOUT THE GROCERY ANCHOR A JOVI'S GREAT OPTION. THEY ARE OWNED BY HEB, BUT THEY AVERAGE 55,000FT■. ALDI'S IS SMALLER, AVERAGING AROUND 17 TO 23,000. TO PUT THE SIZE OF ALDI ALDI'S INTO PERSPECTIVE, THE AVERAGE SQUARE FOOT OF MOST NEWER POCO LOCOS IS 19,000FT■!S. REALISTICALLY, THAS NOT BIG ENOUGH TO FULLY MEET THIS COMMUNITY'S GROCERY NEEDS, MEANING WE'LL STILL NEED TO BE DRIVING TO HEB. WHAT SHE'S ASKING IS SIMPLE TAKE THESE NUMBERS INTO SERIOUS CONSIDERATION. IF WE REDUCE THE NUMBER OF HOMES, WE COULD EXPAND THE RETAIL FOOTPRINT AND ACTUALLY MAKE ROOM FOR REAL GROCERY STORE. SOMETHING THIS SIDE OF KYLE TRULY NEEDS. REALLY GIVE SOME THOUGHT TO THE RETAIL FACTOR. YOU HAVE THE OPPORTUNITY TO BUILD SOMETHING THAT WOULD BENEFIT THE EAST OF 135 IF BUILT IN THE RIGHT WAY. IF THIS DEVELOPMENT REACHES APPROVAL IN THE NEXT QUARTER, YOU ARE ALREADY PUTTING MILLIONS INTO THE DEVELOPMENT. YOU MIGHT AS WELL MAKE IT WORTH THOSE MILLIONS. I AM GOING TO TALK ABOUT AGENDA ITEM FOUR AS WELL. I JUST WANT TO DO A BREAKDOWN OF NUMBERS. THIS PROJECT SAHARA LOOKS TO BRING BACK 960 HOMES, AND RIGHT NEXT TO IT IS GOING TO BE WOODMERE, WHICH IS GOING TO BRING 500 HOMES. AND THEN ALSO ON THE EAST WE HAVE RASTEGAR, WHICH IS GOING TO BRING 3000 HOMES. WHAT THAT BREAKS DOWN TO WITH THE 960 HOMES ALONE. SO PROJECT SAHARA, WE'RE LOOKING AT 2400 PEOPLE FOR THE WOODMERE PROJECT. YOU'RE LOOKING AT 500 HOMES. THAT'S 1250 PEOPLE. RASTEGAR WITH A 3000 PROJECTED IS 7500 PEOPLE, FOR A TOTAL OF 11,150 NEW RESIDENTS BETWEEN BUTTON CREEK ROAD AND 158. I'M NOT SURE IF ANY OF YOU GUYS HAVE DRIVEN THAT AREA, BUT IT ABSOLUTELY CANNOT SUSTAIN 11,150 NEW PEOPLE. NOT TO MENTION THE AMOUNT OF CARS IS GOING TO BE 6690 CARS ON THE ROAD. THAT IS ABSOLUTELY UNACCEPTABLE FOR ROADS THAT HAVE NOT BEEN UPDATED WITHIN THE LAST 5 TO 10 YEARS. AND I'M NOT TALKING ABOUT A PAVE OVER, BUT A TRUE EXPANSION. SO MY ASK FOR YOU GUYS IS TO PUT SOME THOUGHT INTO THIS DEVELOPMENT AS THIS IS LIMITED SPACE. THE EAST SIDE HAS VERY, VERY LITTLE UNDEVELOPED LAND. 
          AND WHAT WE DO HAVE, I THINK WE NEED TO BE THOUGHTFUL AND CONSIDERATE. THANK YOU, THANK YOU. ALL RIGHT. NEXT UP IS MICHAEL MCDONALD. DEFINITELY NOT SAVING THE BEST FOR LAST. GOOD 
          [00:20:03]
EVENING COUNCIL. I HOPE YOU ALL ARE DOING WELL. I WOULD LIKE TO START OFF WITH A QUOTE FROM MAYOR OF PROVO, UTAH. MICHELLE KAUFUSI SHE SAID THE BEST RUN CITY IN THE UNITED STATES OF AMERICA IS A GREAT EXAMPLE OF WHAT CAN HAPPEN WHEN CITY LEADERS LISTEN TO THEIR RESIDENTS AND FOCUS ON RESPONSIBLE BUDGETING. WHAT SHE IS REALLY SAYING IS LEADERS LISTEN TO THOSE WHO YOU REPRESENT AND DON'T OVERBURDEN THEM WITH YOUR WANTS AND NOT THEIR NEEDS. A FRIENDLY REMINDER THE CITY OF KYLE ORGANIZATION CHART CLEARLY SHOWS THAT THE CITIZENS OF KYLE ARE AT THE TOP, VERY TOP OF THE CHART, FOLLOWED BY THE CITY COUNCIL. THIS MEANS THAT YOU, THE COUNCIL ANSWERS TO US, THE CITIZENS OF KYLE. SO I HAVE JUST A FEW QUESTIONS I WANT YOU TO CONSIDER. WHO HAS YOUR EAR? WHO ARE YOU LISTENING TO? RATHER, WHO SHOULD YOU BE LISTENING TO WHEN MAKING DECISIONS THAT AFFECT THE CITIZENS OF KYLE? PLEASE CONSIDER REVIEWING THAT PESKY ORGANIZATION CHART AGAIN. IN THE PAST FEW WEEKS, I HAVE ATTENDED ONE TOWN HALL MEETING AND TWO MEET AND GREET BY MEMBERS OF THIS COUNCIL. THE MAIN TAKEAWAY FROM ALL THESE MEETINGS IS THIS THE CITIZENS OF KYLE ARE NOT HAPPY WITH THE DECISIONS YOU ARE MAKING ON OUR BEHALF. ACCORDING TO WHAT I HAVE SEEN AND HEARD FROM THESE GET TOGETHERS, MOST OF YOU WOULD RECEIVE A FAILING GRADE ACCORDING TO THE PEOPLE YOU REPRESENT. DOES THAT BOTHER YOU? WHO SHOULD GET THE BLAME FOR YOUR FAILING GRADE? NOT US. CONSIDER THIS WHAT WOULD YOUR OPINION BE? IF YOU REPRESENTATIVE DOESN'T CARE OR LISTEN TO WHAT YOU HAVE TO SAY, WOULD YOU BE PLEASED WITH THEIR LEADERSHIP? WHAT GRADE WOULD YOU GIVE THEM? WOULD THEY PASS OR FAIL? ACCORDING TO YOU, WE HAVE PUT OUR TRUST IN YOU BY VOTING YOU ONTO THE COUNCIL. SADLY, WE HAVE HAD TO TELL YOU REPEATEDLY TO REPRESENT US, THE CITIZENS OF KYLE AND NOT A POLITICAL PARTY, AN ORGANIZATION, A CLUB OR ANOTHER COUNCIL MEMBER. WE SHOULD MATTER MORE THAN THESE EXAMPLES. WE'VE ALSO SAID BE TRANSPARENT WITH US, TELL US THE TRUTH AND TELL US IF YOU WANT. 
          IF IT'S A WANT OR YOUR NEED, WE WANT TO HAVE HONEST COMMUNICATION BETWEEN COUNCIL AND CITIZENS. HAVE YOU TREAT US WITH DIGNITY, DIGNITY AND RESPECT AND QUIT CALLING THOSE OF US WHO HAVE DESCENDED OPINIONS, NAMES YOU REPRESENT US AND NOT THE OTHER WAY AROUND. 
          WATCH YOUR SPENDING. REMEMBER, THE MONEY YOU SPEND IS OUR TAX DOLLARS AND NOT YOUR PERSONAL FREE FLOWING SPENDING ACCOUNT, NOT RAISE TAXES. REMEMBER, WE ALREADY OVERTAXED. YOU MUST CONSIDER ALL THE OTHER FEES YOU'VE DECIDED TO RAISE AND ALL THE OTHER OUTSIDE ENTITIES THAT WE MUST PAY TAXES TO AS WELL. A LITTLE HERE, A LITTLE THERE AND THERE AND THERE. IT ALL ADDS UP TO ONE GIANT TAX BILL. WE'VE ALSO TALKED TO YOU ABOUT, IF YOU CARE ABOUT US, WHAT WE CARE ABOUT. DO YOU NOW? I'M ALMOST DONE. THANK. LIFE IS FULL OF CHOICES. SOME EASY, SOME HARD. 
          YOU ALL HAVE CHOSEN TO BE REPRESENTATIVES FOR THE CITIZENS. CITIZENS OF KYLE. HOW WOULD YOU GRADE YOUR PERFORMANCE? MR. MCDONALD, YOUR TIME IS UP. I'M ALMOST, ALMOST DONE. JUST TWO MORE SENTENCES. ARE YOU RECEIVING A PASSING GRADE OR ARE YOU FAILING? THE PEOPLE YOU REPRESENT ARE WATCHING AND THEY'RE NOT HAPPY WITH YOUR PERFORMANCE. IT'S TIME TO MAKE SOME CHANGES. THANK YOU FOR THE EXTRA TIME. ALL RIGHT. THANK YOU VERY MUCH. THOSE ARE ALL THE CITIZEN COMMENTS FORMS THAT I HAVE IN FRONT OF ME. IS THERE ANYONE ELSE WHO WISHES TO COME FORWARD AND SPEAK? ALL RIGHT. SEEING NONE, I'M GOING TO CLOSE CITIZEN COMMENTS. CITIZEN 
          [IV) Agenda Order]
COMMENTS IS NOW CLOSED. NEXT UP IS AGENDA ITEM NUMBER TWO. AGENDA ORDER. DOES ANYBODY HAVE ANY DESIRE TO REQUEST TO MOVE ANY ITEMS AROUND ON THE AGENDA? ALL RIGHT. NEXT UP IS REPORTS 
          [3) Receive a report, hold a discussion, and provide staff direction on Akin Gump Strauss Hauer & Feld LLP’s quarterly update regarding federal advocacy efforts and related activities.]
AND PRESENTATIONS. AGENDA ITEM NUMBER THREE RECEIVER REPORT. HOLD A DISCUSSION AND PROVIDE STAFF DIRECTION ON AKIN, GUMP, STRAUSS, HAUER AND FIELDS LLP. QUARTERLY UPDATE REGARDING FEDERAL ADVOCACY EFFORTS AND RELATED ACTIVITIES. MR. ELIZONDO, THANK YOU MAYOR AND COUNCIL. TONIGHT. WE ARE EXCITED TO WAIT FOR THE PRESENTATION TO COME UP HERE. WE'RE EXCITED TO BRING YOU GUYS AN UPDATE FROM AKIN GUMP, OUR FEDERAL LOBBYIST AND PUBLIC POLICY FIRM. I THINK THEY'RE I THINK THEY'RE PLAYING WITH ME HERE, BOUNCING AROUND THE SCREEN. HERE WE GO. ALL RIGHT. FOR ANYONE WATCHING THAT MAY NOT KNOW THE CITY OF KYLE, BACK IN MARCH OF 2024, THE COUNCIL DID SOME WORK AND BUILT AND ADOPTED THE CITY'S FIRST FULL LEGISLATIVE PROGRAM. THAT IS THE. THE COUNCIL WORKED TO OUTLINE CITY COUNCIL'S LEGISLATIVE PRIORITIES AND PUT 
          [00:25:03]
THEM IN ORDER OF WHAT THE STAFF WOULD THEN GO AFTER NOT ONLY GRANT FUNDING, BUT ALSO TO BUILD RELATIONSHIPS FROM A MUNICIPAL LEVEL, A LOCAL LEVEL, A STATE LEVEL, AND THEN ALSO A FEDERAL LEVEL. WHO WE UTILIZE AKIN GUMP, OUR FEDERAL LOBBYISTS, TO HELP WITH. EVERY YEAR. WE'VE BROUGHT THIS LEGISLATIVE PROGRAM BACK THIS LAST YEAR FOR COUNCIL TO TWEAK AND UPDATE AND ENHANCE. 
          AND SO WE HAVE OUR WE'RE AS WE FOLLOW OUR 2025 LEGISLATIVE PROGRAM, WE USE AKIN GUMP AS OUR FEDERAL LOBBYIST. THEY HAVE WORKED WITH THE CITY SINCE 2021. AND IN THE FIRST FEW YEARS OF WORKING WITH THE CITY, THEY BROUGHT OVER $2 MILLION IN FEDERAL GRANT FUNDING. SINCE WE HAVE IN 2024, SINCE WE THE CITY HAS ROLLED OUT THE LEGISLATIVE PROGRAM, WE HAVE REENGAGED AND WITH AKIN GUMP AND HAD THEM TAKE THAT LEGISLATIVE PROGRAM AND FOCUS THEIR EFFORTS ON WHAT THE COUNCIL'S STRATEGIC PRIORITIES ARE. SPECIFICALLY, AT A FEDERAL LEVEL. WE'VE SEEN OVER THE LAST YEAR AND A HALF, $1.1 MILLION IN GRANTS COME IN THROUGH THOSE EFFORTS AND THROUGH SOME OF THE PARTNERSHIPS, WE'VE HAD COST SAVINGS OF OVER $1 MILLION. ADDITIONALLY, WE'VE ALSO THEY'VE BEEN PIVOTAL IN US OVER THE LAST COUPLE YEARS, APPLYING FOR MORE THAN $100 MILLION IN FEDERAL FUNDING. I WISH I COULD SAY WE RECEIVED $100 MILLION IN FEDERAL FUNDING, BUT A LOT OF THOSE GRANTS ARE COMPLICATED, AND THERE'S A LOT OF COMPETITION FOR THOSE GRANTS. BUT GOING GOING AFTER THEM, ESPECIALLY FOR SOME OF OUR BIG INFRASTRUCTURE PROJECTS, THEY'VE BEEN INCREDIBLY HELPFUL FOR US. SO WE HAVE AKIN GUMP WITH US HERE TONIGHT. OUR REPRESENTATIVE, JOSIE BOREN, I'M GOING TO HAND IT OVER TO HIM TO WALK YOU THROUGH NOT ONLY WHAT'S HAPPENING AT THE FEDERAL LEVEL LEGISLATIVELY, BUT ALSO A LOT OF THE KEY PROJECTS THAT WE'RE WORKING ON. AND JOSIE HAS BEEN WITH THE CITY OF KYLE SINCE THE VERY BEGINNING. SO I'LL HAND IT OVER TO YOU. THANKS, JOSIE. THANK YOU SO MUCH, MAYOR MITCHELL. MEMBERS OF CITY COUNCIL, ALL PRESENT. THANK YOU FOR THE OPPORTUNITY TODAY TO PRESENT BEFORE THE CITY OF KYLE COUNCIL MEETING. AS YOU MAY KNOW, AKIN GUMP HAS REPRESENTED THE CITY FOR CLOSE TO FOUR YEARS NOW. DURING THESE YEARS, WE HAVE GOTTEN TO KNOW EACH OTHER WELL, OUR FIRM, HAVING BEEN BORN AND BRED IN TEXAS, PRIDES ITSELF IN REPRESENTING ENTITIES LIKE THIS WONDERFUL CITY FOR ME, A TEXAN THROUGH AND THROUGH, REPRESENTING THE CITY OF KYLE HAS BEEN A PERSONAL ISSUE AND IT BRINGS PROFOUND, PROFOUND SENSE OF PRIDE. MANY OF YOU HAVE TRAVELED TO WASHINGTON, D.C, WHERE WE HAVE MET WITH THE OFFICES OF CONGRESSMAN GREG CASAR, CHIP ROY, LLOYD DOGGETT, SENATOR JOHN CORNYN AND TED CRUZ ON MORE THAN ONE OCCASION. AND EACH TIME WE HAVE MET WITH THEIR STAFF, WE HAVE FORMED STRONGER BONDS WITH THEIR STAFF OR THE MEMBERS. WE HAVE FORMED STRONGER BONDS. AND ON SEVERAL OCCASIONS WE'VE INVITED BOTH CONGRESSMAN ISSA AND CONGRESSMAN ROY TO MEETINGS RIGHT HERE AT CITY HALL. IN ADDITION, THROUGH OURRR CORNYN HAS ENGAGED WITH CITY STAFF ON A REGULAR BASIS. AND THE SENATOR'S STAFF HAVE VISITED KYLE, BOTH TO MEET WITH CITY LEADERSHIP AND TO HOST NEIGHBORHOOD OFFICE HOURS DURING YOUR VISIT TO THE NATION'S CAPITAL. WE HAVE ENGAGED WITH MANY FEDERAL AGENCIES, INCLUDING THE DEPARTMENT OF TRANSPORTATION, THE FEDERAL HIGHWAY ADMINISTRATION, THE FEDERAL RAILROAD ADMINISTRATION. 
          AS WE WORK TO BRING MORE FEDERAL FUNDS TO THE AREA, MANY IN SUPPORT OF TRAFFIC CONGESTION RELIEF. AS THE CITY GROWS AND EXPANDS. OVER THE YEARS, WE FORGED STRONG RELATIONSHIPS WITH THE WHITE HOUSE AND WITH MANY FEDERAL AGENCIES. BECAUSE OF THE COMMITMENT OF THE MAYOR AND THE COUNCIL MEMBERS AS WELL AS CITY STAFF. THANK YOU SO MUCH TO BRIAN, AMBER, AND JESSE FOR THEIR SUPPORT. SEVERAL YEARS AGO, WE WERE INSTRUMENTAL IN FORMING A RELATIONSHIP WITH UNION PACIFIC, A RELATIONSHIP THAT HAS BEEN BENEFICIAL TO THE CITY. IN THE COMING WEEKS, WE WILL MEET WITH UNION PACIFIC REPRESENTATIVES HERE IN TEXAS AND IN WASHINGTON, DC AS WE CONTINUE TO ADVOCATE FOR FEDERAL FUNDS FOR PROJECTS THAT ARE INTEGRAL TO THE CITY AND SUPPORTED BY THE TEXAS DEPARTMENT OF TRANSPORTATION. MOST RECENTLY, WE HAVE ENGAGED WITH THE EPA AS WE WORK TO DRAW DOWN FUNDS, FEDERAL FUNDS FOR THE PURPLE PIPELINE. WE'RE HAPPY TO REPORT THAT THE PROJECT IS UNDERWAY, AND THE EPA HAS BEEN ACCOMMODATING AND SUPPORTIVE OF THE CITY. IN COLLABORATION WITH THE OFFICE OF SA, WE ARE WORKING ON A WATER SUMMIT TO BRING TOGETHER LEADERS IN WATER EXPERTS FROM THROUGHOUT THE REGION AS WE LOOK AT INNOVATIVE WAYS TO DEAL WITH OUR EVER GROWING WATER ISSUES, WE PLAN TO CONTINUE TO FOSTER CONNECTIONS AND RELATIONSHIPS WITH ALL WHO WISH TO HELP THE CITY OF KYLE. AS WE WORK TO BETTER THE LIVES OF PEOPLE WHO CALL THIS SPECIAL PLACE HOME, I LOOK FORWARD TO OUR CONTINUED WORK AND APPRECIATE YOUR TIME AND ATTENTION. I WILL NOW GO OVER A COUPLE OF SLIDES THAT WE HAVE PREPARED, AND THE 2025 FEDERAL LANDSCAPE. WE HAVE LOOKED AT SEVERAL ISSUES THAT HAVE BEEN OF IMPORTANCE NATIONWIDE, SOME OF THOSE BEING THE CUTS OR THE AGENDA THAT WAS PRESENTED BY THE 
          [00:30:03]
PRESIDENT REGARDING EITHER CUTTING SOME OF THE FEDERAL WORKFORCE OR TRYING TO SAVE ON SOME OF THOSE EFFORTS. WE'VE TRACKED THAT CLOSELY FOR YOU ALL, AND WE'VE BEEN ABLE TO SHARE THAT INFORMATION IN REAL TIME AS IT'S HAPPENED. IN ADDITION TO THAT, THERE'S BEEN SPENDING CUTS AND FREEZES THAT HAVE AFFECTED THE ENTIRE NATION IN MANY CITIES AND COUNTIES AND MUNICIPALITIES. AND SO WE'VE BEEN ABLE TO ENGAGE WITH THEM AND TRY TO, YOU KNOW, FIGURE OUT WHEN THERE WILL BE NEW OPPORTUNITIES OR WHEN THOSE FREEZES WILL EITHER BE LIFTED OR IF THERE'S A DIFFERENT AVENUE THAT WE CAN TAKE. WE'VE SHARED A LOT OF THIS INFORMATION WITH CITY, CITY STAFF. JUST RECENTLY, THE BIG BEAUTIFUL BILL PASSED CONGRESS, AND IT'S A VERY LARGE BILL. HOWEVER, THERE ARE SEVERAL VERY IMPORTANT THINGS THAT WE THINK CAN BE HELPFUL TO THE CITY OF KYLE. ONE OF THEM, THERE'S GOING TO BE PERHAPS A LOT OF FEDERAL FUNDING IN REGARDS TO BORDER SECURITY OR SECURITY MEASURES, AND WE THINK THAT WE CAN TAKE ADVANTAGE OF SOME OF THOSE WHERE THE POLICE DEPARTMENT, THE FIRE DEPARTMENT AND THE EMERGENCY PERSONNEL CAN, CAN HAVE ACCESS. SO WE'RE TRACKING THAT AS THE BILL IS, IS, IS TAKING IS FORMING. AND THEN WE WILL SHARE WITH CITY STAFF ON INFRASTRUCTURE. THERE'S LIKE I SAID, THERE'S BEEN SOME CUTS IN IN THE FEDERAL WORKFORCE THAT HAVE AFFECTED A NUMBER OF FEDERAL AGENCIES. BUT THE CONTEXT THAT WE'VE FORMED, BOTH AT THE DEPARTMENT OF TRANSPORTATION AS WELL AS THE DEPARTMENT OF RAILROAD ADMINISTRATION AND THE FEDERAL HIGHWAY ADMINISTRATION, CONTINUE TO BE THERE. NEXT SLIDE. IN 2025, THE CITY OF KYLE HAS VISITED WASHINGTON, DC. YOU WERE THERE EARLIER THIS YEAR IN MARCH, AND LIKE I SAID, WE HAD A NUMBER OF MEETINGS, THE DEPARTMENT OF TRANSPORTATION, THE EPA, AS WELL AS CONGRESSIONAL STAFF, YOU ALL MET WITH EPA REGION SIX AS WE CONTINUE TO DRAW THOSE FUNDS DOWN. LIKE I MENTIONED EARLIER, REGARDING THE PURPLE PIPELINE AS WELL AS THE BUREAU OF RECLAMATION, THERE'S A COUPLE OF PROGRAMS WITHIN THE BUREAU OF RECLAMATION THAT COULD BE HELPFUL TO THE CITY WHEN IT COMES TO SEEKING LOANS AT A VERY LOW RATE FOR X AMOUNT OF YEARS. THESE PROJECTS, THESE LOANS ARE AVAILABLE, AND WE CONTINUE TO EXPLORE THE POSSIBILITY FOR THE CITY OF KYLE TO BE ABLE TO SECURE SOME OF THESE. LIKE I SAID, WE CONTINUE OUR ENGAGEMENT WITH UNION PACIFIC. WE THINK THAT IN THE NEXT COUPLE OF WEEKS, WE'LL BE ABLE TO HAVE BOTH A VIRTUAL MEETING AS WELL AS AN IN-PERSON MEETING WITH SOME OF THOSE LEADERS, SOMETHING THAT'S TAKEN PLACE HERE IN THE VERY RECENT LAST COUPLE OF WEEKS IS THE DESIRE BY THE TEXAS LEGISLATURE TO REDRAW THE CONGRESSIONAL MAPS. AS YOU ALL ARE AWARE, THE CITY OF KYLE IN HAYS COUNTY FALL WITHIN THE JURISDICTION OF CONGRESSMAN GREG CASAR AND CONGRESSMAN CHIP ROY. BUT SHOULD THESE MAPS CHANGE, WHICH THERE'S A HIGH PROBABILITY THAT THAT WOULD BE THERE WOULD BE SOME SCENARIOS AT PLAY, INCLUDING POSSIBLE REPRESENTATION BY OTHER MEMBERS OF CONGRESS LIKE MICHAEL CLOUD, WHO IS FROM THE VICTORIA, TEXAS AREA. IN ADDITION TO THAT, THERE IS A SITUATION BREWING BETWEEN CONGRESSMAN CASAR AND CONGRESSMAN DOGGETT, BOTH DEMOCRATS THAT REPRESENT AUSTIN BASED DISTRICTS. SO WE'VE BEEN MONITORING THAT CLOSELY. WE'VE BEEN ENGAGING WITH THE REPRESENTATIVES AND SHARING THAT INFORMATION WITH CITY STAFF. WE EXPECT IN THE NEXT FEW DAYS THAT THE TEXAS LEGISLATURE WILL ENACT A NEW MAP THAT WILL TAKE EFFECT, AND THAT IN THE VERY NEAR FUTURE, THE CITY OF KYLE WOULD HAVE EITHER A NEW CONGRESSMAN OR A DIFFERENT CONGRESSMAN THAT YOU'RE OR CONGRESSPERSON THAT YOU'RE USED TO. BUT AKIN GUMP WILL BE READY REGARDLESS TO ENGAGE WITH THAT OFFICE AND, YOU KNOW, EDUCATE THEM AND BRING THEM UP TO SPEED. REGARDING THE CITY OF KYLE AND THE PROJECTS THAT WE'VE WORKED HERE. SO WE'LL CONTINUE TO MONITOR THAT AND WE'LL CONTINUE TO REPORT BACK. FINALLY, ON A REGULAR BASIS, WE PROVIDE UPDATES TO BRIAN, AMBER AND JESSE, AS WELL AS SOME OF THE COUNCIL MEMBERS AND THE MAYOR REGARDING FUNDING OPPORTUNITIES. AND WHENEVER WE SEE AN OPPORTUNITY THAT WE THINK WOULD BE BENEFICIAL TO THE CITY, WE FLAG THAT WE HAVE A CALL, WE START PLANNING THINGS OUT, AND WE MAKE INFORMATION AVAILABLE TO THE CITY. PERSONALLY, I'VE GOTTEN TO SPEND TIME WITH MANY OF YOU ON THE DAIS. I APPRECIATE THE WORK YOU DO ON BEHALF OF THE CITY. I FEEL THAT I'M PART OF THE TEAM. I REGULARLY COME TO THE CITY OF KYLE. IT'S GROWN ON ME IN A VERY UNIQUE WAY AND SO THANK YOU FOR THAT. I DON'T KNOW IF Y'ALL HAVE ANY QUESTIONS OR WISH TO DISCUSS ANY FURTHER, BUT I'M HAPPY TO ENGAGE. ALL RIGHT. 
          THANK YOU JOSE, DOES ANYBODY HAVE ANY QUESTIONS OR COMMENTS? COUNCILMEMBER TOBIAS. ALL RIGHT. 
          [00:35:09]
SO YOU'RE UP THERE IN WASHINGTON RIGHT NOW, CORRECT? YES, SIR. I COME AND GO, BUT YES. YEAH, YOU COME AND GO. SO WHAT'S THE CURRENT ENVIRONMENT THERE WHEN YOU'RE APPROACHING THESE CONGRESSIONAL MEMBERS? I MEAN, YOU KNOW, WE CONSTANTLY TALK ABOUT WE'VE HAD YOU ON BOARD FOR FOUR YEARS AND WE'RE WE'RE TALKING ABOUT GOING AND MEETING WITH THESE INDIVIDUALS AND, AND ALL THAT. WHAT WHAT IS THE WHAT'S THE VIBE THAT WE'RE GETTING FROM THEM? I MEAN, AS FAR AS, AS WE ALL KNOW THAT THERE'S BEEN A LOT OF MAJOR CUTS FROM THE FEDERAL. SO I'M JUST KIND OF CURIOUS TO KNOW HOW GOING FORWARD, WHAT PROJECTS WE HAVE AS A CITY CAN ACTUALLY FINALLY SEE SOME FUNDING DOLLARS COMING OUR WAY. LIKE I SAID, THE REDISTRICTING REDISTRICTING PART, I SEE THAT TOO. I HAVEN'T BEEN TO THE WASHINGTON TRIPS AT ALL, SO I'VE NEVER MET WITH ANY OF THESE PEOPLE, BUT I JUST KIND OF WANTED TO FEEL OF WHAT YOU FEEL IN THE ENVIRONMENT UP THERE AND HOW THESE CONVERSATIONS ARE GOING, OR IF THEY EVEN PAYING ATTENTION OR REALLY LISTENING TO US OR EVEN REALLY CARE. WELL, I THINK THAT THE CONVERSATIONS HAVE GONE VERY WELL, AND I THINK THAT MANY OF THE MEMBERS AND CITY STAFF CAN ATTEST TO THAT. I THINK THAT YOU ALL ARE A KNOWN ENTITY IN THE OFFICES OF GREG CASAR AND CHIP ROY, AS WELL AS THE OFFICE OF SENATOR CRUZ AND SENATOR CORNYN. AND WE GO ON A REGULAR BASIS ONCE A YEAR. AND THE PART OF THE REASON FOR THAT IS BECAUSE THESE STAFFERS, THESE PEOPLE THAT RUN THE DAY TO DAY OPERATIONS OF THOSE CONGRESSIONAL OFFICES, REMEMBER US. AND THEY SAY, OH, THE CITY OF CARLSBAD. OH, THEY BROUGHT ME A SHIRT. YOU KNOW, WE TRIED TO ENDEAR THEM WITH LITTLE THINGS COFFEE CUPS, MUGS, PENS, THINGS THAT WILL REMIND THEM OF THE CITY OF KYLE. AND IN DOING SO, WE FORM A RELATIONSHIP WITH THEM. AND WE'VE BEEN LAST. LAST YEAR THERE WAS AN ISSUE WITH THE APPROPRIATIONS PROCESS, AND PART OF THAT ISSUE WAS THAT THE PROJECTS FELL THROUGH NOT BECAUSE OF ANYTHING THE CITY OF KYLE DID, JUST BECAUSE OF THE WAY THE FEDERAL GOVERNMENT IS OPERATING. AND SO WE'RE HAVING TO REPLAN WHAT SUBMISSIONS WE WOULD DO HERE IN THE NEXT CYCLE. AND SO EVERY YEAR WE WORK TO SUBMIT PROJECTS. OBVIOUSLY, THOSE PROJECTS HAVE TO BE VETTED BY THE CONGRESSPERSON. AND THEN THE CONGRESSPERSON HAS A DISCRETION AS TO WHICH ONES HE OR SHE WILL MOVE FORWARD WITH. 
          WE'VE BEEN LUCKY TO BE INCLUDED IN TWO PROJECTS. ONE PROJECT UNDER REPRESENTATIVE DOGGETT WHEN WE REPRESENTED BY HIM, A SECOND PROJECT BY CONGRESSMAN CASAR WHEN HE FIRST TOOK OFFICE. 
          AND SO, YOU KNOW, WE UNDERSTAND THAT CONGRESSMAN CASAR HAS OTHER NEEDS OR OTHER PRIORITIES AS WELL WITHIN HIS CONGRESSIONAL DISTRICT. AND I FEEL THAT YOU ALL HAVE MADE GOOD STRIDES. I THINK THAT IT'S BEEN A WORK IN PROGRESS. I THINK, YOU KNOW, THE FIRST TIME WHEN WE WENT THERE, YOU ALL WERE NEW TO IT. SOME OF THE ■FOLKS, WHILE BORN IN TEXAS AND WORKING IN CONGRESSIONAL OFFICES, HAD NOT HEARD ABOUT KYLE. SO WE WERE ABLE TO EDUCATE THEM, AND WE CONTINUE TO DO THAT. THE SITUATION IS TOUGH. THE SITUATION IS TOUGH BECAUSE OF THE WAY THE COUNTRY'S FEELING RIGHT NOW REGARDING SPENDING AND EVERYTHING THAT'S HAPPENED IN THE LAST SIX MONTHS SINCE THE PRESIDENT'S TAKEN OFFICE. AND I THINK THAT WE CONTINUE TO HAVE A GOOD PLAN IN PLACE, THANKS TO CITY STAFF AND OUR EFFORTS IN BEING ABLE TO CONNECT WITH THESE OFFICES. AND WE PLAN TO RESUBMIT FOR PROJECTS. IN ADDITION TO THAT, WE HAVE SUBMITTED FOR TWO RAILROAD GRANTS, AND WE HAVE YET TO BE SUCCESSFUL. HOWEVER, WE UNDERSTAND THAT THERE WILL BE THE ABILITY TO SUBMIT LATER THIS YEAR, AND WE PLAN TO SUBMIT FOR THOSE PROJECTS ON THOSE RAILROAD PROJECTS. WHAT WERE THEIR THE END RESULT? WHAT WAS THE REASON WHY WE WERE DENIED? THERE WERE A NUMBER OF PROJECTS THAT WE WERE COMPETING WITH THROUGHOUT THE COUNTRY, AND WE WENT THROUGH A SCORING PHASE WE WERE AFTER. WE WERE NOT PICKED, WE ASKED FOR A MEETING WITH THE DEPARTMENT OF TRANSPORTATION. WE WENT TO THE MEETING, WE GOT A DEBRIEF, AND WE MADE OUR APPLICATION STRONGER. AND SO WE'VE SUBMITTED TWICE. THIS WILL BE THE THIRD TIME WE SUBMIT, AND WE'RE HOPEFUL THAT WE WILL HAVE A BETTER OPPORTUNITY. WE'VE WE'VE TWEAKED OUR APPLICATION EACH TIME TO MAKE IT MORE COMPETITIVE, BUT WE'RE COMPETING WITH CITIES AND MUNICIPALITIES THROUGHOUT THE COUNTRY. AND SO THE PLAN IS, ONCE IT OPENS UP SOMETIME LATER THIS YEAR, I BELIEVE IN OCTOBER OR NOVEMBER, WE'LL SUBMIT FOR THOSE. OKAY. YEAH, I GUESS THAT'S THE DEAL BECAUSE I'M ALL ABOUT RESULTS AND, YOU KNOW, AND THERE ARE MONEY THAT THERE'S MONEY THAT I KNOW THAT WE COULD USE HERE FOR FUNDING FOR A LOT OF DIFFERENT PROJECTS HERE. YOU KNOW, THE, THE HOW AGGRESSIVE ARE IS THE 
          [00:40:01]
COMPANY OR YOUR COMPANY GOING AFTER THE MONEY? I KNOW WE GOT TO COMPETE AGAINST, YOU KNOW, THOUSANDS OF CITIES ACROSS THE CITY, ACROSS THE COUNTRY. AND SO, YOU KNOW, I GUESS WE CAN JUST CONTINUE TO PUT INTO THESE APPLICATIONS. BUT I'M JUST WONDERING IF IT HAS TO DO WITH POLITICAL, IF IT'S POLITICAL OR IF IT HAS TO DO WITH PARTY, IF IT HAS TO DO WITH REGION, IS IT HAVE TO DO WITH THE INCOMES OF, OF OUR AREA? MAYBE THEY FEEL THAT. OKAY, WELL, YOU'RE ALREADY GETTING A LOT OF FUNDING BECAUSE YOU'RE OFF OF 35. IT'S JUST THOSE KIND OF POINTS. I'VE ALWAYS WANTED TO KNOW THE REASON WHY WHEN WE APPLY FOR THESE GRANTS, WHY? WHAT ARE THE MAIN REASONS WHY WE'RE BEING DENIED? I THINK THAT ALL THOSE REASONS ARE CORRECT. YOU KNOW, I THINK THAT THE COMPETITION IS TOUGH. BUT I LIKE LIKE I SAID EARLIER, WE DON'T SUBMIT. WE HAVE NEVER SUBMITTED THE SAME APPLICATION TWICE. WE'VE LEARNED FROM WHATEVER THE PREVIOUS APPLICATION WAS THROUGH THEIR OWN SCORING SYSTEM, AND WE'VE MADE THE APPLICATION BETTER AND WE WILL CONTINUE TO. I PERSONALLY AM VERY AGGRESSIVE ABOUT EVERYTHING I DO FOR THE CITY OF KYLE. I THINK ABOUT, YOU KNOW, TRYING TO HELP YOU AND MAKING SURE THAT OUR EFFORTS ARE WELL, WELL SPENT REGARDING THIS REPRESENTATION. THANK YOU FOR COMING OUT. I APPRECIATE IT, MAYOR, I YIELD. ALL RIGHT. ANYONE ELSE? THANK YOU. YEAH. GOOD POINTS, MICHAEL TOBIAS. 
          ALSO, I WAS KIND OF. WE'VE GONE THROUGH BIG WASTEWATER TREATMENT PLANT EXPANSIONS HERE. WATER INFRASTRUCTURE. SO LIKE, WHAT ARE Y'ALL TRYING TO TARGET IN THAT AREA? SINCE WE'RE STILL INVESTING A LOT OF DOLLARS HERE THROUGH OUR OWN BONDS. SO JUST TO GET US SOME RELIEF AS AS RESIDENTS, DO YOU ALL EVER COOPERATE WITH THE MAYBE STATE LEVEL IF THERE'S A BETTER PROJECT THERE TO GET SOME OF THESE EASIER DOLLARS FOR OUR CITY? A LOT A LOT OF THESE THIS FEDERAL FUNDING IS IN CONJUNCTION WITH THE TEXAS AGENCIES THAT OVERSEE WATER ISSUES. ONE OF THE THINGS THAT AND WE THOUGHT WAS EXTREMELY IMPORTANT, AND MANY OF YOU ALL SHARED THIS WITH US, WAS THE WATER ISSUE. AND WHEN CONGRESSMAN CASAR BECAME OUR REPRESENTATIVE, YOU KNOW, AN ENERGETIC YOUNG PERSON VERY EAGER TO SERVE, WE DISCUSSED WITH HIM THE ISSUE OF WATER AND WANTING HIM TO BE THE UNITER, THE PERSON THAT BRINGS PEOPLE TOGETHER TO TALK ABOUT WATER ISSUES AS A REGION. AND HE'S AGREED THAT HE WANTS TO DO THAT. 
          THERE'S BEEN SOME SCHEDULING ISSUES AND NOW WITH THIS REDISTRICTING ISSUE. SO WE'RE TRYING TO GIVE THEM THAT SPACE AND ABILITY. BUT HOPEFULLY DOWN THE ROAD, WE WANT TO BE ABLE TO BRING HIM AND BRING THOSE VARIOUS STAKEHOLDERS FROM LOCAL MUNICIPALITIES, VARIOUS COUNTY LEADERS, STATE FOLKS, WATER EXPERTS, ALL THE WAY TO FOLKS FROM THE FEDERAL GOVERNMENT, THE EPA, ETC. AND SO THAT'S ONE. THE SECOND POINT TO THAT IS WE HELPED IN SECURING THE MILLION DOLLARS FOR THE PURPLE LINE, AND THOSE MONIES ARE NOW BEING DRAWN DOWN OR VERY SOON WILL BE DRAWN DOWN AS THE PROJECT CONTINUES. THERE IS THE ABILITY TO EARMARK ADDITIONAL MONEY FOR THAT PARTICULAR BUCKET IN THE EPA REGARDING WASTEWATER EFFORTS. AND WE WOULD LIKE TO DO THAT. 
          AND MYSELF AND OTHERS AT AKIN GUMP HAVE BEEN DISCUSSING, YOU KNOW, IF WE CAN HAVE ONE OF THESE APPROPRIATORS IN THE HOUSE AND THE SENATE BE ABLE TO UP THE AMOUNT OF MONEY IN THE IN THE WASTEWATER PROJECTS THROUGH EPA, THAT WOULD ALLOW US THE OPPORTUNITY TO COMPETE FOR MORE DOLLARS WITHIN THAT, WITHIN THAT BUCKET. MAYOR PRO TEM, GO AHEAD. WITH A LOT OF THE FREEZES ON THE PRIORITIES, THE INVESTMENT PRIORITIES OF THE PREVIOUS ADMINISTRATION, WHERE DO YOU SEE LIKE IF YOU WERE TO READ THE TEA LEAVES, WHERE DO YOU SEE IN THE NEXT YEAR OR TWO, FUNDING SHIFTING. WHERE ARE THE WHERE WILL THOSE FUNDING PRIORITIES EXIST? WE THINK THAT A LOT OF PROJECTS OR A LOT OF THE FEDERAL FUNDING WILL TRICKLE DOWN THROUGH STATE AGENCIES. SO WE NEED TO CONTINUE TO WORK ON ON THOSE RELATIONSHIPS AND THE ABILITY TO BE ABLE TO TAP INTO THAT. BUT WE DO THINK THAT, YOU KNOW, WHEN THEY FIRST STARTED TO MAKE THESE FREEZES IN JANUARY, FEBRUARY, MARCH, THEY WERE VERY AGGRESSIVE ABOUT THE FREEZES. AND THEY WENT IN THERE WITH A BIG SCALPEL. AND THEN IN THE MOST RECENT WEEKS, WE'VE NOTICED THAT A LOT OF THE LEADERSHIP FROM WITHIN THE ADMINISTRATION HAS SLOWED THAT PACE A BIG BIT BACK, OR TRIED TO BE MORE CAUTIOUS ABOUT WHAT THEY'VE DONE BECAUSE THEY WERE TOO EXTREME. SO WE DO THINK THAT THERE WILL 
          [00:45:02]
BE FEDERAL FUNDING OPPORTUNITIES, AND WE THINK THAT TEXAS IS A PRIME, A PRIME STATE FOR FEDERAL FUNDS, GIVEN THE PRIORITIES OF THE ADMINISTRATION. SO IT'S YOUR TO ANSWER YOUR QUESTION. IT'S IT KIND OF GOES BOTH WAYS. THERE'LL BE SOME FUNDS THAT WILL PROBABLY FLOW THROUGH THE STATE, BUT THERE WILL ALSO BE SOME OPPORTUNITIES THROUGH THE FEDERAL GOVERNMENT. AND TEXAS IS PRIMED, GIVEN THAT, YOU KNOW, WE ARE A VERY IMPORTANT STATE TO THE NATION AND THIS ADMINISTRATION. SO JUST FOR CLARIFICATION, WHEN YOU SAY THE MONEY IS GOING TO FUNNEL DOWN THROUGH STATE AGENCIES, IS THAT THE MONEY ITSELF OR THE PRIORITIES THEMSELVES THAT WILL THEN BE FUNDED THROUGH THE STATES? I WOULD SAY THE MONEY. 
          OKAY. SO BECAUSE I KNOW THAT YOU, AIKEN GUMP, IS OUR FEDERAL LOBBYIST, DO YOU HAVE ARE THERE RECOMMENDATIONS THAT YOU COULD MAKE TO STAFF OF PEOPLE WITHIN SOME OF THESE STATE AGENCIES? ABSOLUTELY. TO WHOM WE SHOULD BE CONTACTING? ABSOLUTELY, SIR. MAYBE EVEN LOOKING AT A STATE, A LOBBYIST THAT WOULD WORK FOR US IF THAT'S WHERE THE IF MORE MONEY IS GOING TO BE FUNNELED THROUGH STATES TRYING TO WORK SOME OF THOSE ANGLES. I KNOW WE'VE TALKED ABOUT IT IN THE PAST, BUT MAYBE THAT'S SOMETHING WE SHOULD LOOK AT IN THE FUTURE ALONGSIDE TO WORK ALONGSIDE AKIN GUMP IS OUR FEDERAL LOBBYISTS. I WOULD JUST ADD THAT IN ADDITION TO THE FEDERAL DISCUSSIONS THAT WE'VE HAD, WE'VE MET WITH THE STATE WATER DEVELOPMENT BOARD. WE'VE HAD SEVERAL PRODUCTIVE DISCUSSIONS WITH THEM AND WITH THE EPA AS WELL, ABOUT THE WIFIA LOAN PROGRAM FOR SOME OF OUR WATER INFRASTRUCTURE. SO THERE'S A LOT OF DIFFERENT PROGRAMS THAT ARE OUT THERE, BOTH THE STATE LEVEL AND THE FEDERAL LEVEL. AND WE'RE LOOKING AT ALL OF THOSE TO TRY TO FIND THE ONES THAT MAKE THE MOST SENSE FOR US. BUT IT IS A RAPIDLY CHANGING LANDSCAPE. AND WORKING WITH JOSE AND HIS TEAM TO MAKE SURE WE TAKE ADVANTAGE OF EVERY OPPORTUNITY. WE WORK VERY CLOSELY WITH CARL. 
          CARL IS A GRANT WRITER. CARL KNOWS A LOT ABOUT A NUMBER OF I CALL THEM BUCKETS OF MONEY, BOTH AT THE FEDERAL LEVEL. AND THOSE ARE SOME OF THAT WE'VE BEEN WORKING THROUGH RIGHT NOW. THANK YOU. THANK YOU. ALL RIGHT. ANYONE ELSE? ALL RIGHT. THANK YOU VERY MUCH. THANK YOU. ALL 
          [4) Receive a report, hold a discussion, and provide staff direction regarding Project Sahara.]
RIGHT. NEXT UP IS AGENDA ITEM NUMBER FOUR. RECEIVE A REPORT, HOLD A DISCUSSION, PROVIDE STAFF DIRECTION REGARDING PROJECT SAHARA. MISS MCCOLLUM. THANK YOU. MAYOR. CITY COUNCIL MELISSA MCCOLLUM, CHIEF DEVELOPMENT OFFICER THIS PROJECT MIGHT LOOK FAMILIAR. WE ACTUALLY DISCUSSED IT, I THINK MOST RECENTLY BACK IN JANUARY OF THIS YEAR. IT HAS HAS A NEW POTENTIAL LANDOWNER DEVELOPER ASSOCIATED WITH IT. I'M GOING TO HIGHLIGHT THE FIRST COUPLE OF SLIDES. AND THEN I'M ACTUALLY GOING TO INVITE JORGE KEVONTE UP HERE WITH ATX. AND HE'LL BE ABLE TO KIND OF GO THROUGH HIS PROJECT AND REALLY SHOWCASE WHAT HE'S WANTING TO DO OUT HERE. SO THE SUBJECT TRACT IS HIGHLIGHTED THERE, REALLY KIND OF THE GREEN AND THE LIGHT BLUE. IT IS BETWEEN 158 AND 150. 
          SO THEY ARE LOOKING AT TAKING THAT ENTIRE TRACT. AND IT'S RIGHT AT 100 ACRES. SO WITH THAT, IT'S CURRENTLY IN OUR ETJ THEY WOULD LOOK AT DOING ANNEXATION, BRINGING IT FULLY WITHIN THE CITY LIMITS. THEY WOULD LOOK AT REZONING THE PROPERTY AS WELL TO SUPPORT THE LAND USES THAT THEY'RE LOOKING AT DOING ON THE PROPERTY, AS WELL AS DOING A DEVELOPMENT AGREEMENT. AND THEY'RE ALSO LOOKING AT A PID. SO WITH THAT, ALL OF THE KIND OF THE CONCEPTS AND IDEAS THAT THEY'RE INCORPORATING INTO THE DEVELOPMENT WOULD BE REFINED AND REALLY BROUGHT FORWARD AT A FUTURE AGENDA MEETING TO DISCUSS ALL THE SPECIFICS ASSOCIATED WITH THAT. SO WITH THAT, I'LL TURN OVER. THERE YOU ARE. AND AGAIN, THEY HAVE A CITY POINT, KYLE, AS THE NAME FOR THIS PROJECT. HELLO, MY NAME IS JORGE CANAHUATI. I'M WITH ATX CAPITAL. 
          GOOD EVENING MAYOR, COUNCIL MEMBERS, IT'S A PLEASURE TO BE HERE TONIGHT TO PRESENT OUR VISION FOR CITY POINT. KYLE. WE UNDERSTAND THAT KYLE KYLE HAS HAD PROJECTS IN THE PAST WHERE RETAIL WAS PROMISED BUT NEVER DELIVERED. WE UNDERSTAND HOW IMPORTANT IT IS TO NOT ONLY GENERATE TRUST THAT THIS WON'T BE ANOTHER ONE OF THOSE SITUATIONS, BUT ALSO INCORPORATE THE NECESSARY SAFEGUARDS TO ENSURE THAT TO ENSURE THE CITY THAT THIS WON'T BE THE CASE. OUR GOAL IS THE SAME AS YOURS TO MAKE THIS DEVELOPMENT A TRUE RETAIL HUB FOR EAST KYLE, WITH SHOPS, RESTAURANTS, SERVICES AND AMENITIES THAT RESIDENTS CAN ENJOY, NOT JUST HOUSING. THE PROPOSAL WE PRESENT TONIGHT INCLUDES PLANS FOR 70,000FT■!S F RETAIL IN THIS LOCATION, WITH ENFORCEABLE SAFEGUARDS TO GUARANTEE THE CITY THAT THIS RETAIL WILL ACTUALLY COME. 
          [00:50:02]
70,000FT■!S OF RETAIL, WILL TRANSFORM THE LIFESTYLE OF RESIDENTS IN THE AREA, AND IMPORTANTLY, IT WILL SERVE AS PROOF OF CONCEPT THAT WILL ULTIMATELY BRING OTHER RETAILERS TO THIS GENERAL AREA. WE'VE BEEN WORKING VERY HARD WITH WITH STAFF ON THIS PROJECT TO BRING IT TO WHERE IT IS TODAY. IT'S BEEN PRESENTED AT EXECUTIVE SESSION A FEW TIMES, AND WE THANK YOU FOR YOUR FEEDBACK AND WANT TO KNOW THAT WE'VE TAKEN IT TO HEART AND HAVE MADE EVERY POSSIBLE EFFORT TO ACCOMMODATE THE REQUESTS THAT HAVE BEEN MADE. AFTER ABOUT SIX MONTHS OF ACTIVE NEGOTIATIONS, WE'VE, I THINK, REMARKABLY, HAVE BEEN ABLE TO ARRIVE AT A AT A VISION THAT IS ACTUALLY EVEN STRONGER THAN A PROPOSAL THAT WAS BROUGHT TO YOU BACK IN JANUARY BY A PREVIOUS DEVELOPER THAT HAD THE PROPERTY UNDER CONTRACT. THAT WAS ULTIMATELY THAT ORIGINAL PROPOSAL ULTIMATELY DEEMED FINANCIALLY UNVIABLE BY BY THE PREVIOUS DEVELOPER. WE HOPE THAT THERE'S ENOUGH ALIGNMENT BETWEEN OUR VISION AND FOR THE SITE AND THE CITY'S VISION FOR THE AREA, AND THAT WE CAN COLLABORATE TO BRING THIS VISION TO LIFE. I'M GOING TO HAND IT OVER TO ABBY TO RUN THROUGH THE PRESENTATION, AND WE'LL BE HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE. GOOD EVENING. MAYOR COUNCIL ABBY GILFILLEN WITH LIONHEART AND HAPPY TO BE HERE AGAIN TO TALK THROUGH THIS PROJECT. SO I'M GOING TO GO QUICKLY THROUGH THROUGH A FEW OF THESE SLIDES AT THE BEGINNING. BUT THIS PROJECT IS LOCATED IN THE IN TERMS OF THE LAND USE CONTEXT, THIS IS IN YOUR NEW COMPREHENSIVE PLAN AND FUTURE LAND USE MAP. A PORTION OF THIS IS IN THE REGIONAL CENTER UP BY FM 150, AND THE REST OF THE SITE IS WITHIN THAT TRADITIONAL NEIGHBORHOOD DEVELOPMENT AREA ON THE COMP PLAN. THIS IS A THIS PROJECT HAS A IN TERMS OF THE TRANSPORTATION MASTER PLAN. PASTRANO SENIOR PARKWAY GOES RIGHT THROUGH THIS DEVELOPMENT AND WILL EVENTUALLY CONNECT FM 150 TO YARRINGTON ROAD AND THROUGH COUNTY ROAD 158. THIS WILL HELP PROVIDE AN OUTLET FOR TRAFFIC FOR FOLKS WHO ARE TRAVELING DOWN FM 150 AND WANT TO HEAD SOUTH. IT PROVIDES AN OUTLET FOR SOME OF THAT. INSTEAD OF EVERYBODY HEADING STRAIGHT TO THAT INTERSECTION AT I-35 AND FM 150. SO IT'S AN IMPORTANT PIECE. IT'S ALSO A KEY PIECE, AS YOU CAN SEE IN BLUE THERE. THOSE ARE THAT'S ALL THE ROADWAY THAT THE CITY OF KYLE HAS BEEN WORKING ON PUTTING TOGETHER AND IS UNDER CONSTRUCTION AND MOVING FORWARD. AND SO THIS PIECE RIGHT HERE IS A KEY CONNECTION. SO THE PROJECT GOALS, AS GEORGE WAS TALKING ABOUT THE NUMBER ONE GOAL THERE IS REALLY ABOUT THIS EAST KYLE COMMERCIAL AND CIVIC HUB. THIS PROJECT IS REALLY DESIGNED WITH THE INTENTION OF HAVING A REALLY A CIVIC HUB COMMERCIAL THAT'S DONE IN A WAY THAT'S CREATING PLACE. SO AS OPPOSED TO HAVING COMMERCIAL BUILDINGS JUST FRONTING ON FM 150 REALLY WORKED IN THE DESIGN OF THIS DEVELOPMENT TO CREATE A PLACE THERE. SO A PLACE WHERE PEOPLE CAN GATHER AND IT ALSO ONE OF THE WAYS THAT WE'RE DOING THAT IS BY INTEGRATING THE COMMERCIAL PIECE WITH THE RESIDENTIAL, BOTH THE MULTIFAMILY AS WELL AS THE SINGLE FAMILY. SO REALLY INTENTIONALLY DESIGNING THAT SPACE AROUND AROUND THE RESIDENTIAL THAT WILL ACTIVATE THAT COMMERCIAL HUB IN TERMS OF INFRASTRUCTURE AND AMENITIES. I TALKED ABOUT PASTRANO SENIOR PARKWAY, BUT THIS PROJECT ALSO HAS AN LCRA TRANSMISSION LINE, AS WELL AS VIBE TRAILS THAT ARE RUNNING THROUGH IT. AND SO WE'VE REALLY BEEN CAREFUL ABOUT THE DESIGN TO MINIMIZE THE IMPACTS OF THAT TRANSMISSION LINE AND TO REALLY DESIGN IN THE VIBE TRAIL AS WELL AS THE AS WELL AS THE ROADWAY. WE WANT TO CREATE AN ACTIVE ENVIRONMENT. WILL PEOPLE WALK BIKE BY CONNECTING THE LAND USES TOGETHER, AS OPPOSED TO HAVING INDIVIDUAL SINGLE FAMILY OVER HERE IS THEIR OWN DEVELOPMENT, MULTIFAMILY IS ITS OWN AND THEN COMMERCIAL IS ITS OWN. BY INTEGRATING THOSE, IT MAKES PEOPLE THAT MAY CHOOSE NOT TO TAKE ONE TRIP BY CAR, OR GO AND WALK AND ENJOY THE PARKS AND THE PUBLIC SPACES. AND SO THAT'S REALLY PROMOTING A HEALTHY COMMUNITY. AND THEN IN TERMS OF HOUSING, WE WANTED TO PROVIDE A WIDE ARRAY AND MIX OF HOUSING THAT MEETS PEOPLE OF VARIOUS AGES, HOUSEHOLD TYPES AND INCOME LEVELS. SO THIS IS THE OVERALL KIND OF ILLUSTRATIVE PLAN. A COUPLE OF THINGS I WANTED TO POINT OUT. I TALKED A LITTLE BIT ABOUT THAT GOAL OF TRYING TO INTEGRATE THE COMMERCIAL INTO THE MULTIFAMILY. YOU CAN SEE THERE THAT THERE'S A STREET KIND OF AN INTERNAL STREET, NOT A PASTRANO, BUT ONE OVER THAT KIND OF BECOMES THIS, THIS STREET THAT THAT RUNS THROUGH THE SITE ON THE EAST SIDE OF THE MAJOR CORRIDOR THERE THAT STARTS TO 
          [00:55:05]
REALLY HELP TIE THE MULTIFAMILY INTO THE COMMERCIAL. SO WHILE IT'S NOT A VERTICALLY MIXED USE DEVELOPMENT, IT IS HORIZONTALLY MIXED. AND REALLY THAT THAT CARE IS TAKEN. THE PROJECT IN TERMS OF THE PROGRAM AND YIELD, WE'VE GOT ONE OF THE SOME OF THE MAJOR DIFFERENCES BETWEEN WHEN YOU SAW THIS IN JANUARY IS THAT THERE ARE FEWER RESIDENTIAL UNITS, BOTH FOR THE MULTIFAMILY AND SINGLE FAMILY SIDE, AND THERE'S MORE COMMERCIAL, BOTH IN SQUARE FOOT AND AS WELL AS SORT OF JUST IN WHERE THE COMMERCIAL IS LOCATED ON THE SITE, YOU HAVE THE SAME AMOUNT OF PARKS AND OPEN SPACE AND, AND. LET'S SEE, HERE'S ANOTHER SLIDE HERE WITH KIND OF THE DIFFERENCE IN THE PROPOSAL FROM JANUARY TO NOW. ONE OF THE MAIN THINGS HERE IS IN THAT CASH CONTRIBUTION THROUGH A PAYMENT IN LIEU OF TAXES ASSOCIATED WITH THE AFFORDABLE PORTION OF THE PROPERTY, THAT'S GONE UP FROM 3 MILLION TO 3.5 MILLION, THE NET PRESENT VALUE OF THAT. ALSO, IT'S GONE UP IN TERMS OF THE ESCALATING FEES FROM 100 TO 125,000 AT THAT 3% ESCALATION ESCALATION. SO THE NET PRESENT VALUE OF THAT HAS GONE FROM 3.6 TO AROUND 4.3 MILLION. YOU CAN SEE THERE ALSO THAT THE TOTAL LOWS HAVE GONE DOWN. THAT IS REALLY IN RELATION TO FEWER RESIDENTIAL UNITS AND MORE COMMERCIAL. THAT BRINGS THE OVERALL LOUISE DOWN. AND THEN YOU CAN SEE THERE THAT THE COMMERCIAL SQUARE FOOTAGE HAS GONE, GONE UP. AND THAT SQUARE FOOTAGE IS MADE UP OF 70,000 OF RETAIL, AS WELL AS 20 UP TO 24,000 OF CIVIC SPACE. AND THAT WILL BE ACHIEVED THROUGH THE DEDICATION OF THREE ACRES TO THE CITY OF KYLE TO BUILD THAT BUILDING. THE COMMUNITY AMENITIES, THEIR PLAYGROUND AND PUBLIC SPACES ARE THE SAME. 
          WE'VE YOU'VE HEARD A LITTLE BIT ABOUT THIS TODAY, AND I KNOW THAT IT'S BEEN A BIG PIECE OF THE CONVERSATION AS WE'VE TALKED ABOUT THIS PROJECT. SO THAT'S THE TOTAL RETAIL SQUARE FOOTAGE THERE OF SEVEN 70,000FT■!S THAT WILL COME IN PHASES. AND PART OF THAT IS REALLY ABOUT, YOU KNOW, WHEN WE'RE TRYING TO BUILD THAT KIND OF PLACE BASED RETAIL AND COMMERCIAL, SEEING THOSE RESIDENTIAL UNITS COME ON AT THE SAME TIME AS THE RETAIL AND IS IMPORTANT. SO THAT'S ONE OF THE REASONS THAT THIS IS PHASED OUT, IS THAT WE REALLY WANT THIS TO BE A DEVELOPMENT THAT IS ACTIVATED BY THE RESIDENTIAL USES THAT ARE CLOSE BY, WHICH MEANS WE NEED TO GET THOSE DEVELOPING AND COMING ONLINE. AS THE COMMERCIAL COMES ONLINE. THIS IS A LIST THAT YOU'VE HEARD FROM THE DEVELOPER, AND THEY'VE BEEN WORKING REALLY CLOSELY WITH RETAIL COACH AS AS WELL AS RCLCO ALREADY REACHING OUT. YOU KNOW, THE DESIRE IS REALLY TO HAVE A REALLY ACTIVATED AND GREAT COMMERCIAL RETAIL ENVIRONMENT. AND SO REALLY WORKING WITH THE CITY TO FIND SOME GREAT USERS FOR THIS SPACE. THE AFFORDABLE THE CHARACTER OF THE AFFORDABLE IS REALLY THESE ARE AND MULTIFAMILY. BOTH THE MARKET RATE AND AFFORDABLE UNIT PROJECTS ARE REALLY TO BRING THOSE BUILDINGS UP TO THE FRONT. THIS IS MORE OF AN URBAN STYLE MULTIFAMILY. IN BOTH CASES, YOU'RE GOING TO SEE A VERY SIMILAR QUALITY OF BUILDINGS OF DEVELOPMENTS IN BOTH OF THOSE DIFFERENT PRODUCT TYPES. AND YOU CAN SEE THERE THAT'S WHERE THE PILOT PAYMENT COMES IN. ABOUT 80% OF THE UNITS ON THE AFFORDABLE ON ON THE AFFORDABLE MULTIFAMILY WILL BE AFFORDABLE TO THOSE EARNING UP TO 60% OF THE MEDIAN FAMILY INCOME, AND 20% WILL BE AFFORDABLE TO THOSE EARNING UP TO 50% OF THE MEDIAN FAMILY INCOME. THERE'S A MIX OF DIFFERENT PRODUCT TYPES ON THE SINGLE FAMILY SIDE, FROM FRONT TO REAR LOADED. WE'VE TALKED A LITTLE BIT ALREADY ABOUT THE INFRASTRUCTURE. I WANTED TO TALK A LITTLE BIT ABOUT THE PARKS AND OPEN SPACE. SO THAT COMMUNITY PARK THERE IS ABOUT AN ACRE AND A HALF. IT WILL HAVE AN INDOOR MEETING SPACE OF 1500 SQUARE FEET, HAVE RESTROOMS AND DRINKING FOUNTAINS COVERED SPORT COURT, PLAYSCAPE, NATIVE LANDSCAPING. THIS PROJECT IS REALLY COMMITTING TO A LOT OF IMPROVEMENTS WITHIN THE PARKLAND IN ADDITION TO PARKLAND. SO ONE OF THE PLACES THAT WE'RE REALLY KIND OF EXCEEDING CODE AND EXCEEDING REQUIREMENTS IS THAT THERE'S A COMMITMENT TO $2 MILLION THAT WOULD BE SPENT ON THE DEVELOPMENT OF THESE SPACES. SO AS OPPOSED TO JUST GIVING LAND, THERE'LL BE THESE THIS LAND WILL BE DEVELOPED AND IMPROVED. THE REQUIREMENT IS AROUND 1 MILLION. SO THAT'S DOUBLING THE REQUIREMENT FOR IMPROVEMENTS. AND THEN THE LAST THING I WANTED TO POINT OUT IS THAT ONE OF THE THINGS ABOUT THIS SITE IS THAT IT'S THE EXISTING FEATURES ARE ORIENTED 
          [01:00:05]
REALLY WELL TO BE ABLE TO UTILIZE THOSE NATURAL DRAINAGE PATTERNS. AND SO ONE OF THE THINGS WE'VE DONE IS REALLY DESIGNED, PARTICULARLY THE SIDE OF THE SITE, THE WEST PORTION OF THE SITE WEST OF PASTRANO, THERE AS BEING ABLE TO UTILIZE THAT NATURAL DRAINAGE GOING THROUGH THE SITE. AND SO YOU'LL SEE THOSE ARE SOME LOW IMPACT DEVELOPMENT TYPE OF FEATURES. WE WILL HAVE REGIONAL DETENTION THAT WILL BE ABLE TO SERVE THE ENTIRE PROPERTY AS WELL. THERE IS A THERE IS A WASTEWATER SIGNIFICANT WASTEWATER EXTENSION AS WELL AS WE WILL BE ASKING FOR CITY OF KYLE WATER THROUGH A CCN SWAP WITH COUNTY LINE. TALKING A LITTLE BIT ABOUT THE FINANCING DISTRICT, THE PROJECT IS ASKING FOR A PUBLIC IMPROVEMENT DISTRICT. THIS ALLOWS FOR THE PROJECT TO REALLY ENHANCE SOME OF THOSE PUBLIC SPACES, INCLUDING, YOU KNOW, STREETSCAPES, THE STREETS THEMSELVES, AS WELL AS THE PARKLAND AND SOME OF THOSE MAJOR INFRASTRUCTURE IMPROVEMENTS ARE ALL ABLE TO BE FUNDED THROUGH THIS PUBLIC IMPROVEMENT DISTRICT. IT'S A SIMILAR FINANCING STRUCTURE, AS YOU SAW. SOME OF THE THINGS THAT I'D POINT OUT THAT ARE UPDATED FROM THEM IS THE MINIMUM VALUE TO LEAN RATIO HAS GONE FROM 2.0 TO 1 TO 2.5 TO 1. SO THAT'S GONE UP. BUT A VERY SIMILAR FINANCING STRUCTURE. AND IN TERMS OF WHERE WE'RE LANDING IN ON TAX RATES, WE'RE JUST ABOVE THE MARKET AVERAGE BASED ON RECENT CITY OF KYLE DEVELOPMENTS. AND IN TERMS OF NEXT STEPS, WE'RE REALLY HERE TONIGHT JUST TO HEAR FROM YOU ALL. WE'RE HOPING TO BE ABLE TO AFTER WE GET FEEDBACK FROM YOU, WE'RE HOPING TO GO BACK AND WORK WITH STAFF FOR THE NEXT THREE, 3 TO 4 MONTHS, PUT ALL OF THESE DOCUMENTS TOGETHER AND BE BACK HERE FOR CONSIDERATION. ALL RIGHT. THANK YOU. THANKS. ANY ANY FURTHER COMMENTS FROM STAFF? DOES ANYBODY HAVE ANY QUESTIONS? COUNCILMEMBER HARRIS, JUST ONE QUICK QUESTION. WE HAD TALKED ABOUT WATER RECAPTURE. AND AS PART OF THE CONSERVATION MEASURES, IS THAT PART OF THE PLANS FOR, FOR INSTANCE, AIR CONDITIONING, CONDENSATE RECAPTURE, ANYTHING OF THAT NATURE THAT IS NOT CURRENTLY IN THE PLANS? WOULD IT BE POSSIBLE TO TALK ABOUT INCLUDING THAT? WE CAN CERTAINLY LOOK AT THAT COMMERCIAL? YEAH, WE CAN CERTAINLY LOOK AT THAT, PARTICULARLY ON THE COMMERCIAL. WOULDN'T NECESSARILY BE SINGLE FAMILY. THAT'S A LITTLE HARDER. 
          BUT THAT'S RIGHT. THE OTHERS, IT ACTUALLY WILL REDUCE THE BILLS AFTER THAT IS BUILT AND IMPLEMENTED TO THE WATER BILLS WILL BE DRAMATICALLY REDUCED. SO IF YOU CAN KIND OF WORK THAT IN, I'D BE HAPPY TO DISCUSS THAT. SURE. THANKS. ANYONE ELSE? MAYOR PRO TEM ABBY, THANK YOU FOR THE PRESENTATION. QUESTION ABOUT THE AFFORDABLE UNITS. HOW DO WE MAKE SURE WHAT KIND OF SAFEGUARDS CAN WE PUT IN PLACE TO ENSURE THAT THE UNITS WILL REMAIN AFFORDABLE ONCE THEY'RE BUILT AND THEY'RE STARTING TO BE RENTING OUT? LIKE, HOW CAN WE PROTECT THE PROCESS, THE RENTAL APPLICATION PROCESS, TO MAKE SURE THAT THEY ARE INDEED GOING FOR UNDER MARKET RATE? SURE. SO THIS AFFORDABILITY IS THROUGH WHAT'S CALLED THE LOW INCOME HOUSING TAX CREDIT PROGRAM. IT'S MONITORED AND REGULATED. IT'S A IT'S ACTUALLY A FEDERAL PROGRAM. IT'S BEEN EXPANDED THIS YEAR, BUT IT IS TOTALLY REGULATED BY THE STATE. SO THAT'S SOMETHING THAT THE STATE COMES IN. THEY DO AUDITS AND THEY ENSURE THAT AFFORDABILITY PERIOD YOU SAW UP THERE IS 30 YEARS. SO THE DEVELOPMENT IS REQUIRED TO STAY AFFORDABLE AT THOSE LEVELS FOR A MINIMUM OF 30 YEARS. OKAY. THANK YOU. I ACTUALLY HAVE SOME QUESTIONS ON THE ROAD FOR STAFF. SO I DON'T KNOW IF MIKE OR WANT TO COME. CAN WE PUT IT BACK ON THE SLIDE THAT SHOWS THE CONNECTOR? I THINK IT WAS SLIDE NUMBER NINE. THE TRANSPORTATION CONTEXT SLIDE. YOU WANT THE ONE THAT SHOWS THE CONNECTION DOWN THROUGH ALLIANCE. IS THAT CORRECT? YES. THAT ONE. THANK YOU. FIRST QUESTION FOR BRIAN AND ACTUALLY MAYBE MELISSA, BUT I THINK PECAN WOODS WAS A PROJECT THAT WAS ENTITLED IN AUGUST OF 2016. SO ON A FULL NINE YEARS AGO. BUT I THINK THEY ARE MOVING FORWARD NOW FOR THE FIRST TIME. I JUST SAW THAT HIT MY NEWSFEED THAT THEY'RE SEEKING STARTING THEIR PERMITTING 
          [01:05:03]
PROCESS. WHICH PROJECT WAS PECAN WOODS IS THE WALTON PROJECT, SO IT'S MOVING FORWARD. THAT'S HOW MANY HOMES MELISSA, YOU PROBABLY KNOW BETTER THAN I DO. IT'S SEVERAL THOUSAND 760 ACRES, 2075 RESIDENTIAL LOTS. AND THAT'S EAST ON ON 150, CORRECT? YES. OKAY. SO MY QUESTION TO YOU, MIKE. AND THAT'S ALL THAT'S ALREADY ENTITLED AND OUT OF CITY, WHICH MEANS THAT THEY WON'T PAY FOR ANY BOND FUNDS OR ANY ROAD IMPROVEMENTS THAT AT LEAST THAT THE CITY PRODUCES. 
          BUT WHAT IS YOUR ASSESSMENT OF HOW THE NEW NORTH SOUTH ROAD CONNECTION FROM 150 DOWN TO YARRINGTON? WHAT KIND OF IMPACT WILL THIS HAVE ON TRANSPORTATION AND TRAFFIC FLOW? YES. MIKE TRIMBLE, DIRECTOR OF TRANSPORTATION, PUBLIC WORKS. SO WE HAD HAD AN ANALYSIS DONE BY WGI A FEW MONTHS BACK TO LOOK AT THIS VERY ISSUE AND LOOK AT TRAFFIC MOVEMENTS WITH A POTENTIAL IMPROVEMENT. AND SO BASED ON THEIR ANALYSIS, THEY'RE LOOKING AT A POTENTIAL 5 TO 15% DIVERSION OF TRAFFIC FROM 150 TO GO FORTH AND TO OTHER PARTS OF THE NETWORK GIVEN THIS IMPROVEMENT. AND THAT COULD BE MORE DEPENDING ON MORE GROWTH AND DEVELOPMENT THAT'S COMING. 
          IN OTHER WORDS, MORE UNITS THAT COME ONLINE, POTENTIALLY, THE GREATER THE DIVERSION BENEFIT OF HAVING THIS SEGMENT PUT IN PLACE. WHAT WAS THAT NUMBER? I'M SORRY, 5 TO 15% 515 OKAY, OKAY. 
          AND THAT'S AND THAT'S BASED ON CURRENT TRAFFIC VOLUMES THAT WE'RE EXPERIENCING. OKAY. THAT MEANS ONE OUT OF TEN CARS IS TO, YOU KNOW, SOMETHING LIKE THAT THEREABOUTS. YEAH. IF YOU TAKE THE AVERAGE OF THAT, JUST JUST SHOOT IN THE MIDDLE 10%. YEAH. YOU'RE TALKING ABOUT 1 TO 10. 
          WE'LL TURN OFF OF THAT. AND THEN ALSO COMING THE OTHER DIRECTION WILL COME ON TO THIS INITIALLY FROM FROM GOING ON 150. SO ARE YOU SAYING THAT, YOU KNOW, DO YOU HAVE A NUMBER OF WHAT THAT WOULD BE IN TERMS OF VEHICLES YOU THINK MIGHT BE TURNING OFF ON THIS AS OPPOSED TO GOING, I MIGHT I MIGHT TURN TO ROBERT, WHO ACTUALLY WAS WITH WGI. AND HE DID THIS ANALYSIS. THANK YOU. 
          I WOULD BE TALKING ABOUT MY OWN REPORT. KOSARAJU. SORRY, I ALMOST SAID WGI ASSISTANT DIRECTOR, TRAFFIC AND TRANSPORTATION. SO YEAH, TO ANSWER YOUR QUESTION, THE BENEFIT IS GREATER IN THE SOUTHBOUND DIRECTION GOING FROM 150 TOWARDS YARRINGTON, JUST BECAUSE THAT TENDS TO BE THE HEAVILY TRAVELED MOVEMENT TODAY. SO ANY PROJECTIONS AND ANY SHIFTS IN TRAFFIC WERE ESTIMATING IS GOING TO BE BASED ON, YOU KNOW, THE DATA WE HAVE TODAY. SO BECAUSE THE HEAVILY TRAVELED DIRECTION RIGHT NOW IS A SOUTHBOUND, THAT'S WHERE WE'LL SEE THE MOST BENEFIT. SO IF I HAD TO PICK A NUMBER RIGHT. SO I'D PROBABLY ESTIMATE ABOUT 15% GOING SOUTHBOUND AND MAYBE ON THE LOWER SIDE GOING NORTHBOUND JUST BECAUSE WE DON'T HAVE THAT DIRECTIONALITY RIGHT NOW IN THAT AREA. YOU'RE SAYING IT'S HARD TO BECAUSE THE ROAD DOESN'T EXIST. 
          SO IT'S HARD TO IT'S HARD TO DETERMINE WHAT IT MIGHT BE. AND, YOU KNOW, IF YOU ASK ME AS A TRAFFIC ENGINEER, I TEND TO BE A BIT CONSERVATIVE. SO THAT'S WHY I HAD THE RANGE IN THE REPORT. 
          BUT LIKE MIKE JUST MENTIONED, AS DEVELOPMENTS COME ONLINE, SO WHETHER THAT'S PECAN WOODS OR THIS PROJECT OR ANOTHER DEVELOPMENT WILL TEND TO SEE HIGHER SHIFTS IN TRAFFIC, BECAUSE NOW THERE'S DESTINATIONS ALONG THIS CONNECTOR I'M GOING TO CALL IT SO THAT IT IT DRAWS MORE TRAFFIC THAT MAYBE OTHERWISE WOULD HAVE TAKEN A DIFFERENT ROUTE, LIKE 35 OR ALL THE WAY OUT TO SH 21. SO HAVING THE, YOU KNOW, THE COMMERCIAL USES HELPS DRAW TRAFFIC TO IT AND OBVIOUSLY RESIDENTIAL. OKAY. DOES ANYBODY ELSE HAVE ANY TRANSPORTATION RELATED QUESTIONS ON THIS? SO COUNCILMEMBER MCKINNEY, I'VE BEEN A LOUD ADVOCATE FOR SEVERAL YEARS. EVEN BEFORE I GOT ON COUNCIL WITH THE EXPANSION OF 158. I WOULD LIKE TO, YOU KNOW, AT LEAST HAVE THE POTENTIAL TO EXPAND THAT BE CONSIDERED WHILE WE'RE WHILE WE'RE IN THE DISCUSSION OF THIS. 
          YEAH. COUNCILMEMBER, I DO WANT TO NOTE THAT 158 IS ACTUALLY ONE OF THE QUARTERS WE'RE GONNA BE LOOKING MORE CLOSELY AT AS PART OF THE TRANSPORTATION MASTER PLAN, THE MOBILITY PLAN THAT WE'RE WORKING ON. THE. BRIAN, CAN YOU TALK ABOUT THE MECHANICS OF THE, THE, THE, THE PROJECT ITSELF? SO THE ROAD EXISTS CURRENTLY UP TO THE BACK OF QUAIL RIDGE, BUT WE HAVE GONE THROUGH THE PROCESS OF ACQUIRING THOSE LOTS SO THAT THE ROAD CAN NOW CONTINUE FORWARD. AND THEN IT GOES INTO THE MERITAGE TRACK. YES, SIR. YOU KNOW, AND THEN THERE'S THE LOUDON TRACK, AND THEN THERE'S THIS PARTICULAR TRACK. SO THE QUESTION IS TWOFOLD. NUMBER ONE IS THIS PROJECT, IF IT COMES ONLINE, WHAT ARE THE CHANCES THAT IT GETS DEVELOPED WITHOUT THIS CORRIDOR BEING CONNECTED. AND THEN IF IT IS THE CASE THAT WE HAVE ASSURANCES THAT THE PROJECT CAN BE COMPLETED BEFORE THE PROJECT COMES ONLINE, DO YOU HAVE A TIMELINE? SO, FOR 
          [01:10:03]
EXAMPLE, IF THE DEVELOPER, YOU KNOW, SAYS, YOU KNOW, THE MARKET SOFT, WE'RE NOT GOING TO ACTUALLY BUILD OUT ALL THESE HOMES JUST YET, YOU KNOW, ARE WE STILL GOING TO BE ABLE TO BUILD THIS ROAD. AND THEN ALSO CAN YOU SPEAK TO THE FUNDING OF HOW THE ROAD IS BEING CONSTRUCTED? A LOT OF PIECES. YES, SIR. I'LL TRY TO GO THROUGH THOSE. SO THIS IS PART OF TOURIST NUMBER FOUR. SO AS YOU GUYS MAY RECALL, WE EXPANDED TOURIST FOUR ABOUT A YEAR AGO, SIX MONTHS TO A YEAR AGO. WE EXPANDED THAT, WORKED WITH THE COUNTY, GOT THE COUNTY'S INCREMENT TO BE IN THIS TOURIST DISTRICT AS WELL AS THE CITY'S INCREMENT. SO 50% OF THE COUNTY'S TAXES THAT ARE COLLECTED IN THIS AREA CAN GO FOR ROAD INFRASTRUCTURE. SO AS PART OF THAT, WE PUT THIS PARTICULAR PROJECT IN THE FUNDING PLAN TO BE DEVELOPED. SO OUT OF TOURIST NUMBER FOUR, THIS CAN BE FUNDED. AND THE $3.5 MILLION PILOT PAYMENT THAT WE'VE NEGOTIATED WITH THE DEVELOPER, THAT WOULD BE THE SEED MONEY TO START THE PROJECT. AND WE WOULD ISSUE BONDS OUT OF THE TOURS TO PAY FOR THE ROAD, AND THERE IS SUFFICIENT FUNDS AND SUFFICIENT INCREMENT COMING IN WITH THE COUNTY'S PORTION AND OUR PORTION TO FUND THAT BOND AND FUND THAT ROAD. SO THE ROAD WOULD WOULD GO FORWARD VERY QUICKLY. AS FAR AS THE TIMING PERSPECTIVE, WE THINK PROBABLY IN THE 18 MONTH TO TWO YEAR TIME FRAME BETWEEN ALL THE DESIGN AND BUILDING OF THE ROAD IS PROBABLY THE TIME FRAME. WE'D BE LOOKING AT 18 TO 18 MONTHS TO TWO YEARS FROM WHEN, FROM THE TIME AN AGREEMENT IS STRUCK WITH THIS. THIS WOULD INCLUDE THE DEDICATION OF THE RIGHT OF WAY FOR THE ROAD, WHICH OBVIOUSLY HELPS US. IT'S ALSO COST EFFECTIVE FOR THE CITY, BECAUSE THAT RIGHT OF WAY IS DEDICATED TO US, AND IT ACTUALLY MAKES THE PROJECT GO FASTER. SO WE DON'T HAVE TO GO THROUGH AN EMINENT DOMAIN PROCESS. SO THAT HELPS US. SO AS SOON AS THAT AGREEMENT IS STRUCK, 18 MONTHS TO 24 MONTHS, WE BELIEVE THAT ROAD COULD BE BUILT AND DESIGNED AND BUILT. THE YOU'RE SAYING THAT THE TOURS FOR REVENUES BECAUSE WE EXPANDED IT SEVERAL YEARS AGO OVER A LOT OF THESE PROJECTS OVER HERE AND USE COUNTY FUNDS AS WELL. PLUS THE 3.5 MILLION WILL BE ENOUGH TO CONSTRUCT THE ENTIRETY OF THE PROJECT. YES, SIR. AND I DID ALSO WANT TO MENTION IN THE ALADDIN TRACK, ONE OF THE ELEMENTS THAT WE NEGOTIATED AS PART OF, I BELIEVE THERE WAS AN AMENDMENT TO THAT DEVELOPMENT AGREEMENT SEVERAL MONTHS AGO THAT WE DID MAYBE A YEAR AGO. THEY'VE AGREED TO GIVE US A PUBLIC USE ACCESS EASEMENT THROUGH THIS AS WE NEGOTIATE THAT TRACK, SO WE CAN DO IT FROM ALL THE WAY FROM THE MERITAGE DEVELOPMENT, ALL THE WAY THROUGH THE ALADDIN TRACK AND THROUGH THIS PARTICULAR DEVELOPMENT. OKAY. IS THAT ANSWERS ALL OF YOUR QUESTION. SO THE MERITAGE PROJECT IS WHEN WE DID THAT DEAL, THEY WERE RESPONSIBLE FOR CONSTRUCTING, BUT WE DID GIVE THEM A DEADLINE FOR WHEN THAT WAS GOING TO BE REQUIRED, WHICH I'M ASSUMING IS STARTING TO COME DUE. SO HAVE HAVE HAS THERE BEEN ANY DISCUSSIONS ABOUT THE, YOU KNOW, HAVE THEY BEEN ENGINEERING IT? ARE WE GOING TO USE THE SAME ENGINEER OR YOU KNOW, THE YOU KNOW, WOULD IT COULD IT BE THE CASE THAT WE BUILD THIS SECTION OF GO FORTH, BUT THEN THEIR SECTION IS NOT READY IN THE SAME TIME FRAME? NO, I THINK IT WOULD ALL BE AT THE SAME. WE'D BE LOOKING TO TRY TO CONNECT AND BUILD ALL OF IT AT THE SAME TIME, WHETHER IT'S THE SAME ENGINEER OR NOT. I DON'T KNOW YET. WE HAVEN'T HAD THAT DISCUSSION. THAT'S SOMETHING WE WOULD NEED TO LOOK AT. OKAY, WELL, I'M ASKING THOSE QUESTIONS BECAUSE I WANT TO MAKE IT. I WANT TO MAKE SURE THAT IT'S VERY CRYSTAL CLEAR WHAT MY VALUE ADD OR YOU KNOW WHAT? WHAT'S DRAWN ME TO THIS PROJECT TO ADVOCATE FOR IT FOR SO LONG. IT IS BECAUSE THIS IS PROBABLY THE FIRST DEVELOPMENT PROPOSAL THAT WILL ACTUALLY RELIEVE TRAFFIC MORE THAN ADD TO IT, BECAUSE OF THE NEW NORTH SOUTH CONNECTOR FROM 150 STRAIGHT DOWN. AND IT'S TO ME, IT'S RIGHT AT THE EXACT SPOT THAT IT NEEDS TO BE. THE 150 BOTTLENECK REALLY HAPPENS RIGHT THERE FROM ESSENTIALLY FROM LEHMAN TO, TO I-35. AND A LOT OF THAT HAS TO DO WITH THE FACT THAT PEOPLE HAVE TO GO ALL THE WAY AROUND AND DOWN, AND VICE VERSA, WHEN THEY'RE COMING UP NORTH, THEY HAVE TO GO ALL THE WAY UP AND THEN AND THEN COME DOWN THAT STREET. AND SO I THINK THIS IS A FOUR LANE ARTERIAL, WHICH IS ESSENTIALLY THE SAME AS WHAT 150 IS. SO FOR THE, YOU KNOW, FOR THE FOLKS WHO ADVOCATE THAT WE NEED TO BE MAKING INCREASED CAPACITY ON 150 THIS THIS DOES IT AS MUCH AS WIDENING IT WOULD AND ADDING EVEN MORE LANES. AND SO AND IT GIVES A NEW DIRECTION. AND THEN THE OTHER THING TO CONSIDER THAT I THINK THAT'S EXTREMELY IMPORTANT IS THE, THE, THE COLEMAN TRACT, WHICH IS ON THE DOWN AT THE START OF WHERE 110 AND OR YARRINGTON IS THAT HARD CORNER WHERE THE TESLA FACILITIES ARE. WE EXPECT THAT TO BE A MAJOR EAST SIDE GROCER. WE EXPECT THAT TO BE A LOT OF THINGS. BUT IMAGINE THE DIFFICULTY OF ANYONE WHO LIVES ON 150. HOW DO YOU GET THERE IF YOU AND THEN ALSO IF YOU LIVED IN ALL THOSE THE WATERSTONE DEVELOPMENT, WHICH WE DON'T HAVE ANY CONTROL OVER THAT DEVELOPMENT. I MEAN SOME, BUT NOT MUCH BECAUSE THEY'RE NOT IN THE CITY LIMITS. THEY'RE NOT EVEN IN OUR ETJ THEY DON'T HAVE ANY DEVELOPMENT AGREEMENTS WITH. 
          [01:15:02]
THEY DID THEIR DEAL WITH SAN MARCOS AND THE COUNTY. ALL OF THAT IS TRAFFIC THAT IS GOING TO HAVE. IF THEY WANT TO GO SOUTHBOUND, THEY WOULD HAVE TO COME TO I-35 AND THEN GO NORTH UP TO WHERE THAT BOTTLENECK IS AND THEN LOOP BACK AROUND, COME ALL THE WAY BACK DOWN TO THE YARRINGTON, THEN LOOP BACK AROUND AGAIN TO GET INTO WHERE THAT NEW, YOU KNOW, PROBABLY MAJOR, OUR NEXT MAJOR H-E-B OR WHOEVER ELSE WOULD, YOU KNOW, COMPETE FOR THAT SITE. I THINK THAT'S PROBABLY WHAT THAT WOULD BE. THIS BRINGS THEM ALL. THEY DO NOT HAVE TO GO UP TO THE 150 INTERSECTION. THEY DO NOT HAVE TO GO NORTH AT ALL. ALL THOSE THOUSANDS OF HOMES WILL BE ABLE TO TAKE THIS STREET AND GO STRAIGHT DOWN TO THAT NEW PROJECT, WHICH ALSO MEANS THAT THE PROJECT WILL COME FASTER, THAT WHAT WE REALLY WANT, BECAUSE YOU GET TO ADD ALL THOSE VEHICLES AND ALL THOSE HOMES AS, AS BEING DIRECTLY CONNECTED ESSENTIALLY TO THAT SITE. SO THERE ARE JUST A VARIETY OF REASONS THAT THIS PARTICULAR ROAD PROJECT IS EXTREMELY IMPORTANT AND BENEFICIAL, NOT ONLY TO THE FOLKS WHO LIVE DOWN 150, BUT ALSO TO THE FOLKS WHO HAVE WHERE WE HAVE PRIME DEVELOPMENT SITES ON THE EAST SIDE OF I-35 IN KYLE, SOME OF OUR BEST SITES, AND IT'S GOING TO MAKE ACCESS FOR EVERYONE WHO LIVES DOWN 150 TO BE ABLE TO GET TO THOSE SITES IN THE FUTURE FASTER. SO THAT'S, YOU KNOW, OUTSIDE OF THE CONTEXT OF THE DEVELOPMENT PROPOSAL, I KNOW THERE'S, YOU KNOW, THERE'S RESIDENTIAL THERE. I MEAN, I UNDERSTAND THE WOODMERE TRACT WAS VOTED ON AND BEFORE AND PECAN WOODS WAS VOTED ON BEFORE THAT, COOL SPRINGS BEFORE THAT. YOU KNOW, THESE PROPERTY OWNERS, THEY HAVE LAND AND THEY HAVE CERTAIN RIGHTS TO DEVELOP IT. WE CAN ARGUE DENSITY, BUT THAT THIS PROJECT IS PROPOSING FULL ANNEXATION. THEY'RE PROPOSING, YOU KNOW, MAJOR REVENUE, NEW REVENUE SOURCES TO THE CITY THAT WILL THEN BE REINVESTED IMMEDIATELY BACK INTO RELIEVING TRAFFIC ON 150. SO WHEN WE SAY DEVELOPMENT SHOULD SOLVE THE PROBLEMS THAT IT CREATES, I CANNOT THINK OF A BETTER EXAMPLE THAT I'VE EVER VOTED ON THAN THIS ONE BECAUSE OF ALL THE WORK WE'VE DONE LEADING UP TO IT, AND HOW IMPORTANT IT IS AS SORT OF A LINCHPIN PROJECT THAT WILL TAKE US FROM HAVING THE VISION OF MAKING TRAFFIC IMPROVEMENTS ON 150 TO HAVING THE ACTUAL FUNDED PLAN AND, AS YOU SAY, 18 TO 24 MONTH TIME FRAME THAT WILL BENEFIT EVERYONE. SO I'M, I'M I'M EXCITED TO SEE THIS PROJECT HERE. I'M VERY SUPPORTIVE OF IT. AND I DO APOLOGIZE FOR TAKING SO LONG TO DISCUSS IT, BUT IT'S I THINK IT'S REALLY IMPORTANT THAT FOLKS UNDERSTAND EXACTLY WHAT THIS PROJECT REPRESENTS, NOT ONLY TO THE WIGANS AND TO THE DEVELOPERS, BUT TO THE COMMUNITY AS A WHOLE. FROM THE STANDPOINT OF TRAFFIC. MAYOR, IF I COULD JUST OFFER ONE MORE COMMENT. AS YOU SEE ON THE LEFT HAND SIDE OF THE SCREEN, THE TRANSPORTATION MASTER PLAN, YOU CAN SEE HOW GOFORTH OR SENIOR PARKWAY, NOW THAT WE'RE CALLING IT, GOES ALL THE WAY THROUGH THIS TRACK, BUT ALL THE WAY UP TO BEEBE ROAD. 
          THAT'S AN ALSO A VERY IMPORTANT COMPONENT, THAT THIS IS A LINKAGE THAT WILL PROVIDE CONNECTIVITY EVENTUALLY ALL THE WAY UP ON THE EASTERN SIDE OF THE CITY. SO WE BELIEVE IT'S STRATEGIC FOR NOT ONLY THIS TRACK AND THE AREAS THAT YOU'VE MENTIONED QUITE WELL, BUT OVER TIME, YOU'LL PROVIDE A CONNECTION TO THE OTHER PART OF THE CITY, WHICH IS AN INCREDIBLY IMPORTANT PART OF THE TRANSPORTATION MASTER PLAN. SO I JUST WANT TO MENTION THAT. OKAY. 
          ANYBODY HAVE ANY FURTHER COMMENTS? THAT'S TRUE. YEAH. JUST REAL QUICK. MAYOR, I JUST WANTED TO SAY I WANT TO MAKE SURE THAT WE HAVE ADEQUATE PARKING AROUND THE, THE WHAT DO YOU CALL IT, THE ENCLOSED, WHAT DO YOU CALL IT? THE COMMUNITY CENTER AND THE WHAT DO YOU CALL IT? BASKETBALL COURTS, THE COVERED BASKETBALL COURTS, MAKING SURE THE TRAIL GOES UP TO THEM AND THAT THEY STAY OPEN FOR EVERYBODY IN THE PUBLIC. THAT'S GOING TO BE IMPORTANT FOR ME AS WELL. THIS IS GOING TO BE SOMETHING THAT EVERYBODY IN THAT COMMUNITY OR LIVES ON IN THAT AREA CAN TAKE ADVANTAGE OF. I WANT TO MAKE SURE THAT THAT STAYS OPEN TO EVERYBODY IN THE COMMUNITY, WHICH IS THE PARK PROJECT. THE BASKETBALL GOES. THANK YOU. COUNCIL MEMBER RIZZO JUST POINT OUT THAT THAT IS A PUBLIC PARK, SO IT WILL DEFINITELY REMAIN PUBLIC, BUT IT WILL BE MAINTAINED BY THE HOA. SO IF I COULD JUST ADD REAL QUICK AND THERE WILL BE PARKING AVAILABLE AS WELL. TO YOUR POINT, MAYOR, JUST REAL QUICK, IT IS VERY IMPORTANT THAT WE HAVE THAT ROAD THERE BECAUSE WE'VE HAD NUMEROUS ACCIDENTS ON 35 THERE WHERE IT BLOCKS THE TRAFFIC THROUGH. SO IF PEOPLE ARE ACTUALLY ABLE TO GET OFF YARRINGTON AND BE ABLE TO USE THAT CROSS THROUGH, THEY'LL BE ABLE TO GO UP TO THE GOLF COURSE AND 150 AREA, BE ANOTHER THOROUGHFARE FROM THAT END, AND MAY RELIEVE SOME OF THE CONGESTION GOING NORTHBOUND, GETTING OFF OF PARKWAY. SO, YOU KNOW, WE'RE WE'RE IN THE PROCESS OF GETTING A LOT OF THESE ROADS DONE. THE MASTER TRANSPORTATION PLAN THAT'S GOING TO GO TO BEEBE. SO FOR A LOT OF THE PEOPLE OUT THERE THAT ARE SAYING THAT, YOU KNOW, WE'RE NOT MAKING THESE IMPROVEMENTS, THIS TAKES TIME. THIS TAKES TIME, BUT WE ARE ON IT. WE ARE TRYING TO GET THESE ROADS BUILT. WE ARE TRYING 
          [01:20:05]
TO GET THESE ROADS ACQUIRED. THIS IS WHY WE'RE A LOT OF TIMES WE'RE GOING THROUGH THIS PROCESS OF GETTING THE PROPERTY SO WE CAN GET THE RIGHT OF WAYS. SO PLEASE, I JUST WANT THE RESIDENTS TO UNDERSTAND THAT. I UNDERSTAND IT'S FRUSTRATING WHEN YOU'RE SITTING OUT HERE AND IT TAKES LIKE 20 MINUTES JUST TO GET THROUGH THE STREET LIGHT OVER HERE AT PARKWAY AND ACTUALLY UP ON THE TOP. BUT WE ARE MAKING THOSE IMPROVEMENTS. AND I THINK THIS IS REALLY HELP ON ON THIS, ON THIS IN RIGHT HERE, ESPECIALLY FOR THOSE THAT ARE GOING NORTHBOUND. BECAUSE AGAIN, WE COULD HAVE ANOTHER RETAIL STORE THERE. GROCERY COULD BE COMING FOR ALL WE KNOW. 
          AND OF COURSE YOU GOT BUCKY'S LIKE JUST TWO TWO MILES DOWN THE ROAD. SO THIS IS REALLY, REALLY GOING TO HELP ON THAT END. JUST A QUICK YEAH I'LL LET YOU BE THE LAST RESORT. SO THANK YOU, BRIAN, FOR BRINGING THAT UP. AND I WAS GOING TO SAY THAT THE, THE MOST IMPORTANT PIECE OF THIS ROAD IS CONNECTING THE UPPER AND THE BOTTOM. SO ALL OF GOFORTH, THIS WILL ALLEVIATE A LOT OF TRAFFIC ON 150. AND THERE ARE A LOT OF SUBDIVISIONS IN THIS AREA. BUT THIS IS ONE OF THOSE DEVELOPMENTS. THAT'S A SMART GROWTH DEVELOPMENT. I THINK WHEN YOU LOOK AT ARE YOU PLANNING IT CORRECTLY? THIS IS A WELL PLANNED OUT DEVELOPMENT, AND I APPRECIATE THAT. WE'RE TRYING TO BRING IN MORE RETAIL THAN IN THE FIRST TIME THAT THIS CAME FORWARD. I UNDERSTAND THAT WE DON'T ALWAYS GET EVERYTHING THAT WE WANT, BUT THE ROAD IS A NEED. IT FIXES SOME OF THE DRAINAGE. 
          IT DOES GET US TO 158. AND BY BRINGING IN THIS INFRASTRUCTURE, WE'RE POSSIBLY SETTING OURSELVES UP TO HAVE BETTER DEVELOPMENT IN TERMS OF RETAIL DOLLARS OR RETAIL SERVICES IN THIS AREA THAT NEEDS IT. SO WHILE I DO UNDERSTAND THAT, YOU KNOW, WE DON'T ALL WANT THE A LOT OF HOUSING, THIS IS A DEVELOPMENT THAT SOLVES THE CONNECTIVITY AND THE TRANSPORTATION. SO THANK YOU, ABBY, FOR WORKING ON THIS ONE AND BRINGING IT BACK. I YOU KNOW, I DO WOULD LIKE TO SEE THE GOOD WALKABILITY RETAIL THAT Y'ALL ARE TRYING TO ENVISION. AND I APPRECIATE THE PHASING THAT YOU HAVE. BUT I DO HAVE ONE QUESTION. THERE'S A COMMENT IN THE PRESENTATION ABOUT THE PHASE NOT BEING DEPENDENT ON EVERYTHING COMPLETED BEFORE IT MOVES TO THE NEXT PHASE. IT DOES THAT MEAN THAT WE HAVE TO COMPLETE EVERYTHING THAT'S THAT'S BROUGHT IN? SO WHAT THAT MEANS IS THAT THE WAY THE PHASING WORKS, YOU'LL SEE THAT THERE'S SOME RESIDENTIAL ALLOWED, AS WELL AS A CERTAIN NUMBER OF SQUARE FEET OF COMMERCIAL IN EACH ONE OF THE PHASES. SO IT MEANS THAT THE RESIDENTIAL AND THE COMMERCIAL COULD BE GOING ON AT THE SAME TIME. BUT BEFORE YOU CAN MOVE TO THE NEXT PHASE AND DO THE NEXT TRANCHE OF RESIDENTIAL, ALL OF THE COMMERCIAL HAS TO HAVE ITS CERTIFICATE OF OCCUPANCY AND BE FINALIZED IN THAT FIRST PHASE. 
          SO IT'S THE COMMERCIAL THAT'S THE TRIGGER THAT LETS YOU MOVE TO THE NEXT PHASE. SO THAT MEANS THE OFFICES AND STUFF HAVE TO BE OCCUPIED BY A TENANT, LEASED BY A TENANT. THEY HAVE TO BE GIVEN A CERTIFICATE OF OCCUPANCY. SO OBVIOUSLY THEY'RE NOT GOING TO WANT TO BUILD IT IF THEY CAN'T LEASE IT. SO THEY'RE GOING TO WANT TO TRY TO LEASE IT. BUT THERE COULD BE SOME THAT DON'T AREN'T LEASED. BUT THE BUILDING'S BEEN BUILT, THE DEVELOPERS FULFILLED THAT OBLIGATION AND THEY'RE TRYING TO LEASE IT. AND BRIAN, WE'VE HAD THIS CONVERSATION BEFORE, BUT JUST SO THE COMMUNITY CAN HEAR IT, WHEN LAND IS DEDICATED TO THE CITY, THE CITY CAN THEN USE IT FOR REC CENTERS, COMMUNITY CENTERS. BASICALLY LIBRARIES. THESE ARE THINGS THE CITY COULD USE THIS LAND FOR, RIGHT? THAT'S THE DISCUSSION WE'VE HAD WITH THE DEVELOPERS. WE WOULD HAVE SOME RESTRICTIONS AROUND THE USE, BUT IT WOULD BE ANY OF THOSE USES THAT YOU TALKED ABOUT, REC CENTER, LIBRARY, SOME KIND OF MEETING CENTER, ANY OF THOSE THINGS WOULD BE ALLOWED, THINGS THAT WOULD BRING RESIDENTS TO THAT AREA, SOMETHING THAT'S ATTRACTIVE TO THE DEVELOPERS AS WELL. BUT IT'S CERTAINLY A NEED THAT WE HAVE ON THE EAST SIDE OF THE CITY TO HAVE A SPACE TO DO SOMETHING LIKE THAT. AND I GUESS FINANCIALLY, HAVE WE LOOKED AT WHETHER THIS IS A NET POSITIVE TYPE OF DEVELOPMENT LIKE WE'VE DONE IN SOME OF THE OTHER PERFORMERS, WHERE WE KNOW THAT THERE'S A SALES TAX COMPONENT AND A PROPERTY TAX COMPONENT THAT PAYS IN VALUE FOR THE CITY, RIGHT? SO ALL OF THE ALL OF THE COMMERCIAL IS CERTAINLY A NET POSITIVE FOR THE CITY THAT GENERATES SALES TAX AND PROPERTY TAXES THAT WE'RE NOT GETTING ON THE REAL ESTATE SIDE OF THAT, WE DO RECEIVE THE PILOT PAYMENT THAT'S BEEN LOOKED AT AS PART OF THE ROI FOR THE DEVELOPMENT, AS WELL AS ALL OF THE SINGLE FAMILY. SO THERE IS A POSITIVE NET BENEFIT FOR THE ENTIRE DEVELOPMENT, OTHERWISE WE WOULDN'T BE BRINGING IT FORWARD 
          [01:25:01]
TO YOU. WE JUST TACK ON TO THIS QUESTION OF THE ROAD, WHAT WOULD HAPPEN, THE MECHANICS OF WHAT WOULD HAPPEN IF WE WOULD WANT TO BUILD THE ROAD. AND WITHOUT THIS DEVELOPMENT. SO IF ASSOCIATED AND EVERYTHING. RIGHT. SO THIS THIS PIECE OF PROPERTY IS NOT IN THE CITY LIMITS. SO WE WOULD HAVE TO GO THROUGH A CONDEMNATION PROCESS AND TO BUY THAT PROPERTY FROM THE LANDOWNER TO MOVE FORWARD WITH BUILDING THE ROADWAY. SO IT'S A COST OBVIOUSLY, THAT WE'RE AVOIDING BY BEING ABLE TO GET THAT, THAT LAND DEDICATED TO US AND ALSO GETTING THE PROPERTY DEDICATED AND ANNEXED INTO THE CITY. THIS IS NOT IN THE CITY LIMITS, SO WE DON'T RECEIVE ANY REVENUE ON IT CURRENTLY. HOPEFULLY THAT HELPS. HOW MUCH WOULD IT COST THOUGH? DO YOU NEED TO GO TO RESO? MIKE, DO YOU KNOW THE NUMBER? ALL RIGHT. I THINK BASED ON THE STUDY THAT WE DID, I THINK WE'RE ESTIMATING 16 TO 18 MILLION TO BUILD THE ROADWAY. YOU TALKED ABOUT THE LAND ITSELF IS THE CORRECT QUESTION. I DON'T KNOW THE VALUE OF THE LAND ITSELF, BUT WE COULD CERTAINLY GET THAT FOR YOU. THAT'S A TOTAL PROJECT. COUNCILMEMBER. GO AHEAD. CERTAINLY NOT CHEAP. YEAH. I JUST WANT TO FINISH UP ON SOMETHING COUNCILMEMBER TOBIAS HIGHLIGHTED ON WAS THE ROADWAY. 
          TAKING THAT ROAD EVENTUALLY ALL THE WAY TO BE IS WHAT'S GOING TO BE KEY FOR THE NORTH SOUTH CONNECTIVITY. THE OTHER THING THAT WE'RE LOOKING AT IS WE'RE GETTING READY TO PUT IN A LOT OF INVESTMENT IN OUR ROADWAYS, HUNDREDS OF MILLIONS OF DOLLARS INTO OUR ROADWAYS. AND THIS IS THIS IS SOMETHING THAT YOU'RE GOING TO SEE IN KYLE BEING UNDER CONSTRUCTED. WHEN WE THE RESIDENTS WERE TALKING ABOUT US NOT HAVING THE INFRASTRUCTURE, WE'RE PUTTING A MAJOR IMPACT ON THAT INFRASTRUCTURE. NOW WE'RE GOING TO ASK FOR PATIENCE BECAUSE ALL OF IS GOING TO BE UNDER CONSTRUCTION. YOU'RE GOING TO HAVE ROADS BEING BUILT ALL OVER KYLE, WHICH ONCE IT'S DONE, IT'S GOING TO BE VERY BENEFICIAL. BUT IT'S SOMETHING THAT NEEDS TO BE DONE. AND AT THE END IT'S BRINGING A GOOD PRODUCT. I REMEMBER IN THE PAST WHEN DEVELOPERS WOULD COME IN AND TRY TO DEVELOP IN THE EAST SIDE, AND WE TOLD THEM TO BRING US A BETTER PRODUCT, THEY WOULD SAY IT WOULDN'T WORK ON THE EAST SIDE TO SEE BETTER DEVELOPMENT ON THE EAST SIDE, AND DEVELOPERS WANT TO DO THAT. IS A WIN FOR OUR CITY AND FOR THE PEOPLE ON THE EAST SIDE OF KYLE. WE'VE BEEN WE'VE BEEN ASKING DEVELOPERS TO DO THAT. WE'VE BEEN HOLDING THEM TO BETTER STANDARDS, AND THEY ARE BRINGING BETTER STANDARDS AS WELL. SO IT'S REALLY IMPORTANT TO MAKE SURE THAT WE'RE HOLDING THEM TO THOSE STANDARDS AND BRINGING GREAT DEVELOPMENT. I WILL STILL HEAR WHEN PEOPLE WOULD SAY, WE CAN'T BUILD IT ON THE EAST SIDE. AND THIS PROJECT, THIS PROJECT AND THE PROJECTS THAT WE'VE APPROVED RECENTLY HAVE SHOWN THAT YOU CAN. SO I'M GLAD THAT WE'RE BUILDING A BETTER PRODUCT ON THE EAST SIDE OF KYLE. ALL RIGHT. ANY FURTHER COMMENTS? COUNCILMEMBER MCKINNEY? YES. GOT A COUPLE OF QUESTIONS ABOUT THE RESIDENTIAL PORTION. HOW MUCH OF THE RESIDENTIAL IS GOING TO BE BUILT SPECIFICALLY FOR RENT? SO THE MULTIFAMILY WILL BE BUILT SPECIFICALLY FOR RENT. SO THAT'S TWO 315. THERE IT IS RIGHT IN FRONT OF ME. TWO 315 UNIT MULTIFAMILY PROJECTS. SO ALL THE SINGLE FAMILY IS GOING TO BE FOR SALE THEN? YES, THE REPAYMENT OF THE PID. HOW IS THAT DISTRIBUTED THROUGHOUT THE, THE, THE RESIDENTS END UP THERE. SO I'M GOING TO I'M GOING TO GO AHEAD AND LET YOU CAN YOU COME SAY IT IN THE MIC FOR THE RECORD PLEASE. SO ALL OF THE USERS WILL BE PAYING FOR THE PID PROPORTIONATELY TO THE VALUE THAT THEY BRING TO THE DISTRICT. THE ONLY ONE WHO WON'T BE PAYING ANY OF THE PID PAYMENTS IS THE AFFORDABLE MULTIFAMILY GROUP, AND THAT'S WHY THEY'RE PAYING THE PILOT PAYMENT, PLUS THE ESCALATING PAYMENTS FROM YEAR 16 TO 30. THANK YOU. THAT WAS A QUESTION I HAD. THANK YOU. ALL RIGHT. ANYONE ELSE YOU'RE LOOKING FOR DIRECTION FROM US TO FINALIZE THESE AGREEMENTS, CALL FOR PUBLIC HEARINGS. THERE'S A LOT OF DOCUMENTS THAT THIS IS ONE OF THOSE WHERE THERE'S A LOT OF STAFF TIME THAT'S ALREADY TAKEN PLACE, BUT EVEN MORE THAT GOES BETWEEN NOW AND WHEN IT GETS BROUGHT BACK. AND A LOT OF LEGAL REVIEW AND THINGS LIKE THAT. SO YOU'RE LOOKING FOR US TO GIVE THAT DIRECTION? YES, SIR. IF THE CONSENSUS OF THE COUNCIL IS TO PROCEED WITH ALL OF THESE AGREEMENTS, THEN WE'LL WORK WITH HAYS GROUP AND OUR TEAM, AND WE'LL BRING ALL THESE BACK TO YOU HOPEFULLY IN THE NEXT 60 DAYS OR SO. ALL RIGHT. I'D LIKE TO MAKE A MOTION TO DIRECT STAFF TO PROCEED FORWARD WITH THESE AGREEMENTS AND ALL THE VARIOUS HEARINGS AND WORK THAT'S ASSOCIATED WITH THAT, TO BRING THAT BACK TO US. SECOND MOTION BY MAYOR, SECONDED BY COUNCILMEMBER HARRIS. IS THERE FURTHER DISCUSSION ON THAT MOTION? I DO HAVE ONE QUESTION. 
          SORRY, I SHOULD HAVE ASKED THIS BEFORE. IS THERE ANYTHING THAT IF WE WERE TO WANT TO AS A GROUP HERE, IS THERE ANYTHING THAT WE COULD DO TO RESTRICT THE USES OF THE LAND THAT IS BEING CONVEYED TO THE CITY, TO RESTRICT, RESTRICT IT TO OURSELVES, RESTRICT THE USE WHAT WHAT IT CAN BE USED FOR. SO PART OF THIS AGREEMENT. WELL, I THINK IT'S, IT'S PRETTY OPEN WITH THE DEVELOPER OF WHAT WE WANT TO USE. THEY JUST WANT TO MAKE SURE IT'S A COMPATIBLE USE THAT WE 
          [01:30:02]
DON'T PUT A LIFT STATION THERE OR SOME TYPE OF FLEET MAINTENANCE OPERATION, THAT IT'S GOING TO BE A COMMUNITY USE A LIBRARY. THOSE ARE THE THINGS THAT THEY WANT US TO BE ABLE TO, TO PUT AT THAT LOCATION, WHICH ARE THINGS THAT WE WANT TO HAVE THE FLEXIBILITY TO DO TO. I THINK ULTIMATELY IT'LL BE UP TO US TO DECIDE WHAT GOES THERE, RIGHT? YES. YES, SIR. IT'S OUR LAND, BE OUR LAND, AND WE'D BE ABLE TO DEVELOP IT ACCORDING TO THOSE, THOSE AREAS. BUT TECHNICALLY SPEAKING, BY AGREEMENT, WE COULD RESTRICT TO SAY THAT WE WANT TO USE THIS. 
          THIS NEEDS TO BE USED FOR A LIBRARY, A PARK, OR, YOU KNOW, A CITY FACILITY. WE COULD WE DO THAT IF WE WANTED TO. I THINK THAT'S WHAT IT WOULD BE RESTRICTED TO IS TO COMMUNITY USE LIKE THAT. THAT'S THE AGREEMENT THEY WOULD BE DEDICATING OR DEEDING THAT LAND TO US, AND IT WOULD HAVE SOME OF THOSE RESTRICTIONS AROUND IT. CORRECT? YEAH. IF COUNCIL HAS A SPECIFIC USE THAT THEY WANT THIS TO BE USED FOR, THAT THEY WANT TO INCLUDE IN THE AGREEMENT. 
          COUNCIL CAN DO THAT. THE ONLY CAUTION I WOULD GIVE YOU IS IF PLANS CHANGE IN THE FUTURE. WE WOULD HAVE TO GET AN AMENDMENT THROUGH IN ORDER TO CHANGE THAT. OKAY. THANK YOU. ALL RIGHT. ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED. MOTION CARRIES 7 TO 0. OUR NEXT 
          [VI) Consent Agenda]
UP IS THE CONSENT AGENDA. I DO WANT TO NOTE THAT MAYBE FOR THE FIRST TIME EVER, THERE'S A SLIGHT MISTAKE IN THE AGENDA. WE'RE MISSING ITEM NUMBER 20. SO JUST WANTED TO MAKE THAT CLEAR. 
          IS THERE ANYONE WHO WISHES TO PULL ANY OF THESE ITEMS TO DISCUSS FURTHER? 23 2323 OKAY. 
          ANYONE ELSE? ALL RIGHT. I'LL MAKE A MOTION TO APPROVE CONSENT AGENDA ITEMS FIVE THROUGH 19 AND 21, 22 AND 24. SECOND. ALL RIGHT. MOTION BY MAYOR, SECONDED BY COUNCILOR HARRIS, THAT WE APPROVE AGENDA ITEMS FIVE THROUGH 1921, 22 AND 24. IS THERE DISCUSSION ON THAT MOTION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED. MOTION CARRIES 7 TO 0. NEXT UP IS AGENDA ITEM 23. 
          [VII) Items Pulled from Consent Agenda]
FIRST READING. CONSIDER APPROVAL OF AN ORDINANCE TO IMPLEMENT REDUCED SPEED LIMIT ZONE ON GRIST MILL ROAD IN FRONT OF RAMAGE ELEMENTARY SCHOOL. THIS ITEM IS PRESENTED BY MR. TRIMBLE. MR. TOBIAS, YOU HAVE THE FLOOR. THANK YOU VERY MUCH. RIGHT OFF THE BAT, THIS IS MY YEARLY PUBLIC ANNOUNCEMENT THAT I ALWAYS MAKE. SCHOOL IS IN SESSION. LADIES AND GENTLEMEN, CITY OF KYLE. RESIDENTS, PLEASE SLOW DOWN WHEN YOU'RE GOING THROUGH THOSE SCHOOL ZONES, OKAY? PLEASE SLOW DOWN. ALL RIGHT, SO THE ONLY QUESTION THAT I HAVE IS WE'RE LOOKING AT TRYING TO LOWER THE SPEED LIMIT. ARE THERE ANY FLASHING LIGHTS THAT ARE ALREADY CURRENTLY UP THERE RIGHT NOW LIKE WE HAVE OVER THERE OFF OF DAISY AND SOME OF THE OTHER ONES THAT KIND OF DETER TRAFFIC FROM SLOWING DOWN, FOR THE RECORD, ASSISTANT DIRECTOR OF TRAFFIC TRANSPORTATION, YES, WE DO HAVE, DUE TO THE TIMING OF WHEN THIS CAME TO US AND US HAVING TO GET OUT THERE QUICKLY, WE MANAGED TO KIND OF WRANGLE FLASHERS FOR THE TIME BEING. THE INTENT IS FOR US TO GO BACK AND SWAP THEM WITH THE OTHER MODEL THAT WE HAVE, THE SOLAR SOLAR MONITOR ONES. 
          YES. YEAH. BUT WE DO HAVE FLASHERS OUT THERE RIGHT NOW AND THEY'RE JUST SET UP BASED ON THE TIMES THAT ARE POSTED ON THE SIGN THERE WHICH IS MENTIONED IN THIS PRESENTATION. OKAY. SO THE SCHOOL DISTRICT CAME TO US, CORRECT FOR THAT, FOR ASKING FOR US TO HELP WITH THE SPEED LIMIT. 
          THAT'S CORRECT. YEAH. HAYS. HAYS CONSOLIDATED ISD REACHED OUT TO US. TWO WEEKS AGO NOW, THREE WEEKS AGO, ASKING FOR THESE SIGNS INSTALLED. OKAY, I GUESS THEY'VE BEEN SEEING A LOT OF HEAVY TRAFFIC THERE. AND OBVIOUSLY WITH THE NEW SCHOOL, PEOPLE MAY NOT REALIZE IT'S UP AND RUNNING AND SO FORTH. SO I JUST KIND OF WANTED TO MAKE SURE THAT WE'RE FOLLOWING UP, MAKING IT UNIVERSAL OR UNIFORM, THAT WHEN WE HAVE THESE NEW CROSSWALKS OR THESE, WE HAVE THE FLASHING SOLAR LIGHTS THAT ARE VERY BRIGHT AND VISIBLE, THAT HAS PEOPLE KNOWING THAT, YOU KNOW, YOU'RE COMING UP ON A SCHOOL ZONE, AND THEN RIGHT WHEN YOU HIT IT, YOU KNOW, MAYBE THE STREETS ARE ALREADY LINED STATING THAT IT'S THE SCHOOL ZONE. I HAVEN'T BEEN OUT THERE YET. SO THAT'S KIND OF WHY I'M ASKING THESE QUESTIONS. NO, WE DEFINITELY HAVE THE TEMPORARY FLASHERS OUT THERE RIGHT NOW. AND LIKE I MENTIONED, THEY'LL BE SWAPPED OUT WITH THE SOLAR VERSION ONCE WE GET THEM IN STOCK. BUT THAT IS OUR STANDARD PRACTICE FOR SCHOOL ZONES TO HAVE THE FLASHERS. SOMETIMES IF WE'RE WORKING WITH A ROADWAY THAT'S NOT OURS TO MAINTAIN. SO IF IT'S A COUNTY OR TXDOT ROADWAY, THAT PROCESS MAY TAKE A BIT LONGER BECAUSE OF THE INTERAGENCY COORDINATION. BUT IF IT'S OUR ROAD, THEN, YEAH, I THINK IT TOOK LIKE SEVERAL LIKE 
          [01:35:04]
AT LEAST ABOUT A MONTH OR TWO FOR THE ONES FROM DC TO COME IN. SO, I MEAN, JUST THAT'S JUST I GUESS WHEN SCHOOLS ARE GETTING BUILT, WE'RE GOING TO START LOOKING AT SOME OF THESE ROAD, ROAD LIKE STREET IMPROVEMENTS BECAUSE WE HEAR FROM THE RESIDENTS BECAUSE, YOU KNOW, BUS SERVICES HAVE BEEN CANCELED IN CERTAIN AREAS OF THE CITY. SO NOW THESE KIDS ARE HAVING TO WALK HOME, UNFORTUNATELY. SO NOW WITH THAT AND THEN THE SPEED ZONES, THAT'S KIND OF A BIG CONCERN. AND SO I JUST WANTED TO MAKE SURE WE'RE GOOD ON THAT. YEAH. COUNCILMEMBER MIKE TRIMBLE, DIRECTOR TRANSPORTATION PUBLIC WORKS. RIGHT. SO, YOU KNOW, WE WERE ABLE TO GET SOME THINGS IN PLACE LEADING UP TO SCHOOL STARTING THIS YEAR. BUT NOW THAT NEXT YEAR WE WANT TO START LOOKING FORWARD. SO WE'RE TALKING ABOUT STARTING THAT COORDINATION EARLY WITH THE SCHOOL DISTRICT, LOOKING AT WHAT THOSE WALKING ROUTES ARE AND THEN SEEING WHAT IMPROVEMENTS WE MIGHT NEED TO DO. ALSO TO COORDINATE WITH OUR PARTNERS AT TXDOT, WE HAVE ITEMS THAT WE'RE LOOKING AT, CROSSWALKS WE'RE LOOKING AT ON 27, 70 AND OTHER AREAS VETERANS DRIVE. SO AGAIN START THAT COORDINATION EARLY SO WE CAN GET AHEAD OF THIS FOR NEXT YEAR AND MAKE SURE THAT WE'RE GETTING SOME THINGS IN PLACE. OBVIOUSLY IF WE CAN GET IT IN PLACE SOONER. BUT JUST SO YOU KNOW THAT WE'RE GOING TO WORK ON THAT PLANNING PROCESS IN A MORE COMPREHENSIVE WAY GOING FORWARD. THANK YOU VERY MUCH. SO WITH THAT, MAYOR, I'D LIKE TO GO AND MAKE A MOTION TO APPROVE AGENDA ITEM NUMBER 23. SECOND. ALL RIGHT. IT'S BEEN MOTION BY COUNCILMEMBER TOBIA, SECONDED BY COUNCIL MEMBER MCKINNEY THAT WE APPROVE. AGENDA ITEM 23. IS THERE FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED. MOTION CARRIES 6 TO 0. CAN I GET A GET A VOTE FROM YOU, MR. RIZZO? YES, MAYOR, I SAID I. ALL RIGHT THEN WE'RE GOING TO CALL THAT 7 TO 0. AND THERE'S IN THE RULES OF COUNCIL. I JUST WANT TO STATE CLEARLY THAT IF AN ITEM IS PASSED ITS FIRST READING IT, THE RULES SAY WE DON'T HAVE TO ASK ON OBJECTIONS THAT THEY ARE FINALLY PASSED IF THEY'RE 
          [25) (First Reading) Consider approval of an Ordinance adopting the land use assumptions, capital improvements plan, and establishing an updated water impact fee totaling $10,908 per living unit equivalent (LUE) and an updated wastewater impact fee totaling $8,762 per LUE, amending Ordinance No. 298-2, and establishing an effective date.
Public Hearing
]
UNANIMOUS SEVEN ZERO. THANK YOU MAYOR. ALL RIGHT. NEXT UP IS AGENDA ITEM NUMBER 25. FIRST READING. CONSIDER APPROVAL OF AN ORDINANCE ADOPTING THE LAND USE ASSUMPTIONS CAPITAL IMPROVEMENT PLAN AND ESTABLISHING AN UPDATED WATER IMPACT FEE TOTALING $10,908 PER LIVING UNIT EQUIVALENT AND AN UPDATED WASTEWATER IMPACT FEE TOTALING $8,762 PER LU. AMENDING ORDINANCE NUMBER 298 TWO AND ESTABLISHING AN EFFECTIVE DATE. THIS ITEM DOES HAVE A PUBLIC HEARING. MISS MCCLELLAN. YES. THANK YOU, MAYOR AND COUNCIL, THIS ITEM IS A LOOK AT UPDATING OUR WATER AND WASTEWATER IMPACT FEES. AGAIN, THESE ARE SITUATED OR DECIDED AT THE TIME OF PLATTING. SO WHEN IT'S WHEN THE SUBDIVISION OR THE PLAT THAT DIVIDES UP, THE LAND GETS RECORDED. THAT'S WHAT SETS UP THESE IMPACT FEES. THEY'RE BASED ON LIVING UNIT EQUIVALENTS AND THEY ARE COLLECTED AT THE TIME OF BUILDING PERMITS. FOR BOTH OF THAT, WE HAVE RECENTLY UPDATED OUR OUR WATER AND WASTEWATER AND WORKING ON OUR WASTEWATER MASTER PLAN. SO THESE IMPACT FEES REALLY HELP TO PAY FOR THE INFRASTRUCTURE ONCE IN NEEDS THAT WE NEED HERE AT THE CITY OF KYLE AND GRADY IS HERE, THAT HELPED US OUT WITH THAT. THIS HAS BEEN A BEFORE OUR IMPACT FEE ADVISORY COMMITTEE, WHICH OUR PLANNING AND ZONING COMMISSION, PLUS AN ADDITIONAL MEMBER SERVED ON, THAT. THEY DID A VOTE AND RECOMMEND THIS. IT'S GONE THROUGH THE NOTIFICATION PROCESS IN ACCORDANCE WITH STATE LAW TO ADVERTISE THIS PUBLIC HEARING THAT IS TODAY. AND GRADY'S READY TO KIND OF WALK US THROUGH THIS PRESENTATION. SO YOU CAN REALLY SEE WHERE THESE IMPACT FEES ARE COMING FROM. GOOD EVENING, MAYOR AND COUNCIL. AS, AS AS MELISSA SAID, I'M JUST GOING TO KIND OF GO THROUGH THIS RATHER QUICKLY, AT LEAST THE FIRST PART OF THIS. AND THEN WE'LL SPEND A LITTLE BIT OF TIME KIND OF DISCUSSING THE MECHANICS OF HOW THESE IMPACT FEES WERE DEVELOPED. 
          FIRST, WE HAVE TO OUTLINE WHERE THESE IMPACT FEES WOULD, WOULD BE APPLICABLE. AND WE ARE KEEPING THIS THE SAME IDEA THAT WE USED LAST TIME THESE IMPACT FEES WERE UPDATED. AND SO THESE UPDATED IMPACT FEES WOULD APPLY TO ANY NEW DEVELOPMENT WITHIN THE CITY'S ETJ. SO THAT DOES NOT IN ANY WAY OBLIGATE THE CITY TO SERVE WATER AND WASTEWATER WITHIN WITHIN ITS ETJ. IT JUST MEANS THAT IF THERE IS A DEVELOPMENT THAT OCCURS WITHIN THE CITY'S ETJ AND THE CITY UTILITY PROVIDES WATER AND WASTEWATER SERVICE, THEN THESE IMPACT FEES WOULD BE APPLICABLE TO THAT DEVELOPMENT. ONE OF THE THINGS THAT WE DO HAVE TO DO WHEN WE'RE GOING THROUGH THIS PROCESS IS COME UP WITH AT LEAST A RUDIMENTARY LAND USE PLAN. THIS IS CERTAINLY NOT AS DETAILED AS IT IS WITHIN YOUR WITHIN YOUR COMPREHENSIVE PLANNING OR ANYTHING LIKE THAT. 
          BUT WE DO TRY TO BASE THIS AS BEST WE CAN OFF COMPREHENSIVE, OFF COMPREHENSIVE PLANNING, AND THEN TRY TO GO KIND OF WHERE WE THINK DEVELOPMENT IS GOING TO OCCUR. AND SO THIS JUST KIND OF SHOWS THAT BETWEEN WITHIN THE WITHIN THE CITY'S ETJ, THERE'S ABOUT 33,300 ACRES. AND THIS JUST KIND OF GIVES YOU THE BREAKDOWN OF APPROXIMATELY THAT CURRENT DEVELOPMENT AND WHERE WE 
          [01:40:03]
THINK THAT IS GOING TO BE IN THE NEXT TEN YEARS OR SO. SO THIS IS WHERE I KIND OF REALLY WANT TO SPEND A LITTLE BIT MORE TIME. AND THIS IS KIND OF THE MECHANICS OF, OF DEVELOPING THE, THE IMPACT FEES. AND I KNOW THAT IS VERY SMALL. THERE'S JUST A BIG TABLE AND TRYING TO TRYING TO FIT IT ALL ON THERE. BUT BASICALLY WHAT WE ARE DOING WHENEVER WE'RE DEVELOPING IMPACT FEES IS WE REALLY START WITH LOOKING AT NOT ONLY THE CITY'S EXISTING INFRASTRUCTURE, BECAUSE IF THERE IS EXCESS CAPACITY IN THAT INFRASTRUCTURE, WE CAN ROLL THOSE COSTS THAT THE CITY HAS ALREADY INCURRED INTO THE IMPACT FEE. AND SO THAT'S THE VERY TOP PART OF THIS TABLE. THOSE ITEMS THAT ARE LABELED WATER SUPPLY, WATER TREATMENT, PUMPING, GROUND STORAGE, ELEVATED STORAGE AND WATER TRANSMISSION. SO IN A FEW OF THOSE AND WATER SUPPLY, TREATMENT AND PUMPING, WE DID DETERMINE THAT THERE WAS EXCESS CAPACITY AVAILABLE. AND SO WE ARE ROLLING A PORTION OF THOSE COSTS INTO THE IMPACT FEE. THOSE PROJECT COSTS FOR EXISTING INFRASTRUCTURE WERE DETERMINED AS BEST AS WE CAN DETERMINE THEM FROM THE CITY'S FIXED ASSETS MODEL. SO WE DID GO THROUGH THERE, AND WE TRIED TO IDENTIFY ASSETS AND CATEGORIZE THEM AGAIN AS BEST WE COULD BASED UPON HOW THEY WERE LABELED AND CALLED OUT IN THE IN THE FIXED ASSETS MODEL DOWN BELOW THAT THE PROPOSED PROJECTS, THOSE ARE THE WATER PROJECTS THAT WE SEE BEING UTILIZED OVER THE NEXT TEN YEAR PERIOD, OR BEING CONSTRUCTED OR PUT INTO PLACE. AND SO AGAIN, WE'RE CATEGORIZING THOSE INTO THESE, INTO THESE DIFFERENT GROUPINGS. AND REALLY THE IMPORTANCE COLUMNS THERE IS OBVIOUSLY THE PROJECT COST THAT WAS PROVIDED TO US FROM THE CITY'S UPDATED WATER WATER MASTER PLAN, AS WELL AS INPUT FROM CITY STAFF ON WHAT THOSE COSTS WOULD BE. AND THEN WE LOOK AT THAT PERCENT, PERCENT UTILIZATION COLUMN. CURRENTLY IN 2025, ALL NEW PROJECTS ARE ZERO BECAUSE THEY'RE NOT CONSTRUCTED. AND THEN WE'RE LOOKING OUT TEN YEARS WHENEVER WE DO THESE IMPACT FEES. SO WE HAVE A COLUMN FOR 2035. AND THAT PERCENT UTILIZATION WAS DETERMINED AGAIN THAT WAS GIVEN TO US BY PROVIDED BY CITY STAFF AND DISCUSSIONS WITH THEM. AND THEN SO THEN WHAT WE'RE DOING IN THAT COLUMN THAT IS LABELED UNDER THE COST ALLOCATION PORTION OF THE TABLE, THAT TEN YEAR COLUMN, WE'RE BASICALLY JUST TAKING THAT PERCENT UTILIZATION, PERCENT UTILIZATION FOR THESE NEW PROJECTS. AND WE MULTIPLY THAT BY THE PROJECT COST TO GET ALL OF THE ALL OF THE VALUES IN THAT MIDDLE COLUMN THERE UNDER THE UNDER THE COST ALLOCATION HEADING. THOSE ARE THE PROJECTS. THAT IS THE ACTUAL COST THAT WE ARE ROLLING INTO THE IMPACT FEE. 
          SO BY LAW, WE CANNOT NECESSARILY TAKE THE FULL PROJECT COST AND ROLL THAT INTO THE IMPACT FEE. 
          IF WE DO NOT EXPECT THAT PROJECT TO BE FULLY UTILIZED OVER THE NEXT TEN YEAR PERIOD, WE CAN ONLY TAKE A PORTION OF THAT COST BASED UPON THE PROJECTED UTILIZATION OF THAT PROJECT. THE INSET BOX DOWN BELOW JUST KIND OF SUMS EVERYTHING UP FOR EACH ONE OF THOSE PROJECTS TYPES. 
          THAT TEN YEAR COST IS THE SUM OF THE PROPOSED PROJECT COST AND THE EXISTING PROJECTS. SO YOU CAN SEE THE TOTAL WATER PROJECT COST THAT WE ARE ROLLING INTO. THE WATER IMPACT FEE IS A LITTLE OVER $245 MILLION. AGAIN, THAT'S NOT THE FULL PROJECT COST OF PROJECTS THAT WE WOULD ANTICIPATE BEING CONSTRUCTED OVER THE NEXT TEN YEARS. THAT'S JUST THE PORTION OF THAT COST THAT WE CAN ALLOCATE TO THE IMPACT FEE WE DID LOOK AT AS WELL. WE LOOKED AT GROWTH AND LOUISE, AND WE'RE USING ABOUT 6% BETWEEN 6 AND 7% GROWTH. THAT WAS CONSISTENT WITH THE WITH THE WATER MASTER PLAN. AND SO WE EXPECT WATER LOUISE OR UTILITY LIVING UNIT EQUIVALENTS TO GROW BY ABOUT 16,500 OVER THAT SAME TEN YEAR PERIOD. SO THEN IF WE DO THE MATH, THE COST PER LOO IS JUST THE $245.7 MILLION DIVIDED BY THE 16 FOR 46, AND WE GET 14,938. THAT'S OUR STARTING POINT FOR THE WATER IMPACT FEE. AND I'LL KIND OF GET TO WHERE WE GO FROM THERE IN JUST A SECOND. 
          THIS IS THE SAME, SAME TYPE OF DEAL, SAME MATH FOR WASTEWATER. AGAIN, EXISTING PROJECTS AT THE TOP. AND WE AGAIN, WE GOT THOSE COST FROM THE FIXED ASSETS MODEL, NEW PROJECTS DOWN AT THE BOTTOM THAT WERE PROVIDED BY BY CITY STAFF AND BASED ON PLANNING AND WASTEWATER MASTER PLANNING COSTS. AND AGAIN, LOOKING AT GROWTH AND HOW WE EXPECT THOSE PROJECTS TO BE UTILIZED IN THE 
          [01:45:06]
FUTURE, I WILL NOTE THAT WE DO HAVE ONE PROJECT ON HERE THAT THAT'S LINE NUMBER TWO, THE WASTEWATER TREATMENT PLANT EXPANSION PHASE THREE. WE DID INCLUDE THAT WITHIN THIS PROJECT OR WITHIN THIS LIST, BUT NONE OF THOSE COSTS ARE INCLUDED IN THE IMPACT FEE, AS WE WOULD EXPECT THAT THAT EXPANSION TO HAPPEN OUTSIDE OF THIS TEN YEAR PLANNING WINDOW. SO LOOKING AT THIS TOTAL WASTEWATER COSTS THAT WE HAVE INCLUDED IN THE IN THE IMPACT FEE CALCULATION IS JUST UNDER $310 MILLION, SLIGHTLY MORE THAN THAN WATER COST. THE GROWTH IN LOUISE ON THE WASTEWATER SIDE IS GREATER THAN IT IS ON THE WATER SIDE, JUST SIMPLY BECAUSE YOUR WASTEWATER SERVICE AREA IS GREATER THAN YOUR WATER SERVICE AREA, YOU HAVE OTHER WATER SUPPLIERS THAT ARE PROVIDING WATER WITHIN, IN SOME CASES, WITHIN THE CITY'S CITY LIMITS, AS WELL AS JUST YOUR ETJ. AND SO AND THE OTHER THING THAT I WILL POINT OUT, JUST JUST SO EVERYONE IS AWARE, IS THAT THE WASTEWATER PUMPING GROWTH IN LOUISE IS HALF. THAT'S BECAUSE ONLY ABOUT HALF OF YOUR WASTEWATER SYSTEM IS ACTUALLY PUMPED. THE OTHER HALF IS GRAVITY FED INTO THE WASTEWATER TREATMENT PLANTS. JUST JUST SO EVERYONE'S AWARE. SO WHENEVER WE DO ALL THAT AND WE ADD UP THE MATH, WE COME UP WITH KIND OF A STARTING POINT FOR THE WASTEWATER IMPACT FEE OF A LITTLE OVER $13,000. NOW, ONCE WE GET TO THAT POINT, STATE STATUTE SAYS THAT WE HAVE TO DO ONE OF TWO OPTIONS. WE CAN EITHER TAKE THOSE THAT THAT WHAT WE CALL A CAPITAL COST OF NEW SERVICE PER OE. WE CAN EITHER TAKE THAT COST AND WE CAN JUST CUT IT IN HALF, OR WE CAN DO WHAT'S, WHAT'S CALLED A RATE CREDIT. AND SO THE RATE CREDIT IS BASICALLY GOING IN AND DOING A SERIES OF CALCULATIONS TO TRY TO DETERMINE AS BEST WE CAN, HOW MUCH OF THESE NEW PROJECTS WOULD BE PAID FOR THROUGH RATEPAYERS AS THEY CONNECT TO THE SYSTEM. AND THE IDEA HERE IS THAT WE DON'T WANT TO DOUBLE CHARGE ANYONE FOR THESE PROJECTS, SO WE DON'T WANT THEM TO HAVE TO PAY AN IMPACT FEE AND THEN ALSO PAY FOR THESE PROJECTS IN FULL THROUGH THROUGH UTILITY RATES. 
          SO THAT'S THAT'S THE INTENT OF THE STATE STATUTE. AND SO WE WENT THROUGH THIS RATE RATE CREDIT OPTION, WHICH IS OPTION A. AND OPTION B IS JUST AGAIN JUST TAKING THOSE THOSE NUMBERS AND CUTTING THEM IN HALF, DOING THE RATE CREDIT OPTION PRODUCES THE HIGHER OF THE TWO IMPACT FEES. AND SO THAT IS THE IMPACT FEES THAT, THAT WE'RE RECOMMENDING. SO THE TOTAL RATE CREDIT ON THE WATER IMPACT FEE WOULD BE $4,031. SO THEN IF WE TAKE THE 14,939 MINUS THE 4031, THAT'S HOW WE ARRIVE AT OUR NEW WATER IMPACT FEE. PROPOSED WATER IMPACT FEE OF 10,908 PER YEAR. 
          AND AGAIN, WE DO THE SAME THING ON ON WATER AND WASTEWATER. AND AGAIN, JUST JUST TO MAKE SURE THAT EVERYONE IS AWARE OF WHAT AN LU IS. THESE IMPACT FEES, THEY SCALE BASED ON METER SIZE. 
          SO WE'RE ON WATER METER SIZE. SO WE'RE DETERMINING THE NUMBER OF VALUES BASED ON METER SIZE. SO MOST YOU KNOW ALL SINGLE FAMILY RESIDENTIAL IS TYPICALLY GOING TO BE THE STANDARD METER SIZE. 
          SO THEY WOULD BE ONE. AND IT KIND OF SCALES UP FROM THERE. SO FOR EXAMPLE IF YOU PUT IN A TWO INCH METER THAT COULD BE EIGHT. SO YOU WOULD PAY EIGHT TIMES WHATEVER THESE IMPACT FEES ARE FOR THAT, THAT TWO INCH METER. AND AGAIN AS, AS MELISSA POINTED OUT, BUT I JUST I JUST WANT TO MAKE IT ABUNDANTLY CLEAR IS THAT THESE REVISED IMPACT FEES ARE IMPACT. THEY WOULD ONLY APPLY TO NEW NEW PROJECTS THAT ARE PLATTED AFTER THE AFTER THIS GOES INTO EFFECT. SO IT DOES NOT AFFECT ANYTHING THAT'S ALREADY PLATTED. IT DOES NOT AFFECT ANY EXISTING CUSTOMERS ON THE ON THE WATER AND WASTEWATER UTILITY. SO IF WE LOOK AT KIND OF HOW YOU WOULD COMPARE WITHIN OTHER CITIES, THE HIGH IS PFLUGERVILLE. THEIR CURRENT IMPACT FEES ARE $29,849. 
          COMBINED WATER AND WASTEWATER GEORGETOWN IS IN THE PROCESS OF ADOPTING NEW IMPACT FEES SIMILAR TO YOU. AND THEY ARE THEY'RE VERY CLOSE TO THAT HAPPENING. AND SO WE DON'T NECESSARILY KNOW WHAT THOSE NEW FEES ARE GOING TO BE. BUT AS OF THEY'RE PROPOSING NEW FEES OF $27,412 COMBINED, THE CITY OF KYLE CURRENTLY CHARGES $12,514. SO THIS IS ABOUT A $7,000 PER INCREASE. THE ONLY OTHER THING THAT I CAN SAY IS THAT EVEN SOME OF THESE CITIES THAT ARE STILL BELOW THE 
          [01:50:04]
CITY OF KYLE, THEY HAVE RECENTLY UPDATED THEIR THEIR WATER AND WASTEWATER IMPACT FEES, AND WE ARE SEEING PRETTY LARGE INCREASES IN A LOT OF THESE AREA IMPACT FEES. AND IT'S JUST SIMPLY BECAUSE THE COST OF, OF BUILDING NEW INFRASTRUCTURE IS GETTING UNFORTUNATELY, IT'S JUST GETTING MORE AND MORE EXPENSIVE AS WELL AS ROLLING IN THE COST OF NEW SUPPLIES, WHICH I DON'T HAVE TO TELL YOU ALL, BUT IT'S GETTING MORE AND MORE EXPENSIVE TO BRING WATER INTO CENTRAL TEXAS. AND SO THAT'S THAT'S DRIVING SOME OF THIS INCREASE THAT WE'RE SEEING IN AREA IMPACT FEES AS WELL. SO, SO KIND OF WHAT THIS MEANS IS, IF ALL NEW 2024 PERMITTED HOMES WERE PAYING THAT IMPACT FEE, THE CURRENT IMPACT FEE REVENUE WOULD BE ABOUT $12.9 MILLION. AT THE $12,514 PER YEAR, WITH THE PROPOSED IMPACT FEES THAT WOULD THAT WOULD BE 20, A LITTLE OVER $20 MILLION. SO IT'S ABOUT A DIFFERENCE OF $7.4 MILLION. AND AGAIN, THAT'S THAT'S JUST IF ALL THE 2024 HOMES WERE PAYING THIS THIS DIFFERENCE. SO AS AS IT WAS STATED, THIS HAS GONE THROUGH THE WHAT'S CALLED THE KAYAK OR CAPITAL IMPROVEMENT ADVISORY COMMITTEE. WE MET WITH THEM A COUPLE OF TIMES AND WALKED THEM THROUGH THIS PROCESS AND VERY, VERY, VERY GREAT TO TELL. AND WE WENT THROUGH THEY DID APPROVE THE IMPACT FEE REPORT. AND BY APPROVING THEIR REPORT, THEY DID FIND THAT THE LAND USE SPACES APPEARED TO BE REASONABLE, THAT THE CIP HAS BEEN REASONABLY DEFINED, THAT THESE FEES APPEAR TO BE REASONABLY, REASONABLY CALCULATED, AND THAT THE NEW MAXIMUM ALLOWABLE IMPACT FEE IS THAT $19,670. THE IMPACT FEE ADVISORY COMMITTEE, OR CIC, ALSO DID RECOMMEND THAT COUNCIL ADOPT A MAXIMUM ALLOWABLE IMPACT FEE AND THEN CONSIDER A FEE UPDATE IN THREE YEARS. THAT DOES NOT MEAN THAT THAT'S WHAT YOU HAVE TO DO. IT'S JUST WHAT THEY RECOMMENDED YOU AS THE CITY COUNCIL CAN APPROVE AN IMPACT FEE ANYWHERE BETWEEN $0 UP TO THIS MAXIMUM OF 19,670. ALL RIGHT. THIS ITEM DOES HAVE A PUBLIC HEARING. SO IF THERE ARE NO OBJECTIONS, I'M GOING TO OPEN THE PUBLIC HEARING NOW. ALL RIGHT. SEEING NONE. THE PUBLIC HEARING IS NOW OPEN. IS THERE ANYONE WHO WISHES TO COME FORWARD AND SPEAK ON THIS ITEM? PLEASE STATE YOUR NAME FOR THE RECORD. HI, MY NAME IS SANDY GONZALEZ AND I AM A RESIDENT HERE AND I, AS I SAID EARLIER, WHEN I FIRST MOVED HERE, I WAS PAYING. I STARTED TO PAY $44 FOR A VERY SMALL LOT AND BASICALLY FROM ONE MONTH TO THE NEXT, MAYBE, I DON'T KNOW, THE SECOND OR THIRD YEAR THAT I WAS HERE, THE WATER RATES DOUBLED FOR ME, AND THE ANSWER I GOT FROM THE CITY WAS EVERYBODY'S RATES WENT UP. IT'S JUST THE WAY IT IS, BLAH, BLAH, BLAH. AND THEY'VE NEVER COME DOWN. SO RIGHT NOW, FOR OUR SMALL LOT, I PAY ABOUT 125. WELL, WE PAY ABOUT 125. 
          WHETHER I USE A DROP OR NOT, IT'S NOT GOING TO GO BELOW THAT. AND I THINK PART OF THE REASON, YOU KNOW, WE OUR WATER PROBLEMS AND STUFF, BUT WE'VE BEEN SUBSIDIZING KYLE RESIDENTS EXPANSION INTO OTHER AREAS. I DIDN'T KNOW THAT THAT WAS PART OF WHAT I WAS PAYING. I DON'T THINK IT'S RIGHT. IT'S NOT FAIR. ESPECIALLY WHEN MY HOME IS PROBABLY HALF OR LESS THE VALUE OF SOME OF THE HOMES. OR I WOULD SAY PROBABLY ALL OF THE HOMES THAT ARE BEING SUBSIDIZED IN THE ETJ SUBDIVISIONS LIKE SIX CREEKS AND ANTHEM. IT'S WRONG TO ASK KYLE RESIDENTS TO CONTINUE SUPPORTING EXPANSION FOR HOMES THAT HAVE MUCH GREATER VALUE SO THAT SOMEBODY CAN BENEFIT FROM IT, AND FOLKS THAT DO NOT PAY INTO THE CITY'S TAX BASE. YES, I KNOW THEY DON'T VOTE. BUT, YOU KNOW, HONESTLY, THE PAYING IS REALLY WHAT COUNTS, RIGHT? HOW MUCH MONEY YOU PUT FORTH TO GET THE SERVICE THAT YOU NEED. I EXPECT TO PAY SOMETHING BECAUSE I'M GETTING THAT SERVICE, BUT I EXPECT THAT EVERYONE ELSE ALSO BE ON AN EQUIVALENT BASIS, AND THAT INCLUDES ALL THE FOLKS. 
          KYLE RESIDENTS SHOULD NOT BE CONTINUED, SHOULD NOT BE ASKED TO CONTINUE BEARING THIS BURDEN BECAUSE $125 FOR A TINY LOT AND I DON'T EVEN RUN SPRINKLERS IS NOT RIGHT AND I CAN SERVE. 
          THANKS. THANK YOU. IS THERE ANYONE ELSE WHO WISHES TO COME FORWARD AND SPEAK? PLEASE STATE 
          [01:55:11]
YOUR NAME. FOR THE RECORD, MY NAME IS MICHAEL. MY NAME IS MICHAEL GURENKO AND I'M A RESIDENT OF ANTHEM. AND I JUST WILL POINT OUT TO THE COUNCIL THAT WE ALREADY PAY MORE MONEY IN THESE EXTRA LOCATIONS. THE COST INSIDE THE CITY IS $122 ON AVERAGE, AND WE PAY $167 ON AVERAGE. SO IT'S A MISCONCEPTION THAT THOSE COMMUNITIES LIKE ANTHEM AND SIX CREEKS ARE NOT PAYING THEIR FAIR SHARE. HERE. WE, THE CITY, HAS AGREED TO SELL US THAT WATER, AND WE ARE PAYING EXTRA FOR THAT WATER ALREADY. AND THE INCREASES THAT HAVE BEEN SUGGESTED ARE, I THINK, REALLY SIGNIFICANTLY OUT OF PROPORTION IN COMPARISON TO WHAT CITY RESIDENTS ARE PAYING. AND AGAIN, WE DON'T HAVE A VOICE, A VOICE OR A VOTE IN ANY OF THIS BECAUSE WE ARE NOT PART OF THE CITY OF KYLE, TECHNICALLY. AND YET IN OUR HEARTS AND OUR SOULS, WE ARE VERY MUCH KYLE RESIDENTS. THANK YOU, THANK YOU. IS THERE ANYONE ELSE WHO WISHES TO COME FORWARD? ALL RIGHT. SEEING NONE, I'M GOING TO CLOSE THE PUBLIC HEARING. PUBLIC HEARING IS NOW CLOSED. TIM, IS THERE ANY IS THERE ANYTHING YOU CAN OR ANY OF ANYBODY CAN SAY ABOUT THE DIFFERENCE BETWEEN THE IMPACT FEES AS IT RELATES TO IN CITY VERSUS OUT OF CITY? IS THERE ANY DISTINCTION THERE? THERE IS NO DIFFERENCE BETWEEN IMPACT. AND AGAIN, THESE ARE ONE TIME FEES PAID AT THE VERY BEGINNING OF SERVICE. SO IF YOU LIVE IN A HOME, THIS BECAUSE IT'S A SIGNIFICANT RAISE IN THE IN THE FEES. THIS THIS ISN'T SOMEONE THIS ISN'T A FEE THAT'S COMING ON ANYONE. CORRECT. THIS WOULD NOT BE INCLUDED IN A UTILITY BILL. SO THIS IS A ONE TIME FEE THAT'S USUALLY PAID AT THE TIME THE HOME BUILDER PULLS THE PERMIT. SO DON'T GET ME WRONG, THE HOME THE HOMEOWNER DOES PAY, YOU KNOW, WITH THE PRICE OF THE HOME, BUT IT'S NOT AN ADDITIONAL FEE OR SOMETHING THAT'S INCLUDED WITH THE UTILITY BILLS. I DO BELIEVE THERE'S A DIFFERENCE IN TAP FEES FOR INSIDE AND OUTSIDE CITY, BUT THAT'S DIFFERENT FROM THESE IMPACT FEES. IF I COULD, JUST TO MAKE SURE IT'S CLEAR. I THINK THAT'S EXACTLY RIGHT. THEY'RE NOT PAYING ADDED ON TO UTILITY BILLS, BUT IF NOT FOR THE IMPACT FEES, UTILITY BILLS WOULD BE HIGHER BECAUSE THOSE COSTS THAT WE OUTLINED IN OUR CAPITAL IMPROVEMENT PLAN, THEY WOULD HAVE TO BE MADE UP WITH EXCLUSIVELY UTILITY FEES IF NOT FOR THE IMPACT FEES. SO THE IMPACT FEES ARE DESIGNED TO HAVE DEVELOPMENT PAY A LARGER PORTION OF THE COST RELATED TO DEVELOPMENT, INSTEAD OF THE EXISTING RATEPAYERS HAVING TO PAY THOSE COSTS. THAT'S WHAT THAT'S WHAT THE INTENT IS. HOPEFULLY THAT HELPS. AS YOU SAID, THE DEVELOPERS TYPICALLY ARE THE ONES WHO HAVE TO PAY THIS AND THEY PAY IT UP FRONT, RIGHT? AND THEY MAY PASS IT ALONG. AND THE PRICE THEY FREQUENTLY DO PASS IT ALONG IN THE PRICE OF THE HOME TO THE TO THE RESIDENT THAT BUYS THAT HOME. I WOULD THINK THEY WOULD HAVE NO CHOICE BUT TO DO THAT. RIGHT? YEAH. ALL RIGHT. DOES ANYBODY HAVE ANY QUESTIONS OR COMMENTS? MAYOR PRO TEM, I JUST WANT TO MAKE IT ABUNDANTLY CLEAR ON THE HEELS OF WHAT THE LAST TWO FOLKS SAID, THAT THIS VOTE HAS NOTHING TO DO WITH WATER RATES. IT IS IMPACT FEES. SO JUST TELL YOUR FRIENDS. TELL YOUR NEIGHBORS, PLEASE. THANK YOU, COUNCILMEMBER MCKINNEY. SO YOU GOT THE FINGER ON THE BUTTON. WELL, I JUST WANT TO POINT OUT THAT THIS IS THIS IS ASSESSING THE, THE COST OF THE DEVELOPMENT THAT WE HAVE TO INCUR ON THE DEVELOPERS AS IT'S COMING IN. AND IT'S MY UNDERSTANDING THAT WE GET TO DO THIS EVERY THREE YEARS NOW, IS THAT ACCORDING TO CURRENT LEGISLATION? YES. THAT'S RIGHT. MY ONLY REGRET IS WE COULDN'T ACCOUNT FOR THE NEXT THREE YEARS OF COST INCREASES, BUT WE DON'T KNOW WHAT THOSE ARE YET. SO THIS IS THE MOST FAIR WAY THAT WE CAN ASSIGN THE COST OF THESE THINGS TO, YOU KNOW, THE INCOMING RESIDENTS. SO IT DOESN'T FALL ON EXISTING RESIDENTS SHOULDERS TO, TO SUBSIDIZE THE NEW DEVELOPMENTS. THAT'S ACTUALLY A GOOD POINT. IS THERE AN ESCALATION LIKE A, YOU KNOW, INFLATION NUMBER. THAT'S WHEN YOU'RE COMING UP WITH YOUR VALUE FOR THESE PROJECTS THAT'S INCLUDED IN THE FEE. WE DID NOT SPECIFICALLY INCLUDE AN ESCALATION FACTOR IN THESE PROJECT COSTS. HOWEVER, MOST OF THEM DO INCLUDE A CONTINGENCY THAT THAT COULD BE ESCALATION. 
          BUT WE DID NOT SPECIFICALLY LOOK AT AT NECESSARILY AT AN INFLATION FACTOR FOR EACH ONE OF THESE PROJECTS. ANY ADDITIONAL DISCUSSION? IS IT TOO LATE TO ADD ONE? YEAH, YEAH. THAT'S IT'S 
          [02:00:05]
DONE AT TIMES, BUT IT'S ALSO NOT DONE AT TIMES JUST BECAUSE WE, WE YOU DON'T WANT TO HAVE YOU DON'T WANT TO OVERCHARGE IMPACT FEES EITHER. CERTAINLY UNDER THE NEW REGULATIONS BECAUSE THAT CAN TRIGGER SOME SOME REPERCUSSIONS. I JUST WANTED TO BE FAIR. YES. WE'RE I FEEL THAT THIS IS THE MOST FAIR WAY THAT WE HAVE THAT WE HAVE CALCULATED THESE. COUNCILMEMBER HARRIS, AND I'D LIKE TO EMPHASIZE THAT THE COMMITTEE RECOMMENDED WE REVISIT THIS EVERY THREE YEARS. SO IF WE HAVE AN IMPACT THAT IS GREATER THAN WHAT THE, THE CONTINGENCY FEE ALLOWS FOR, THEN IN THREE YEARS WE'LL BE ABLE TO ADJUST FOR THAT OR SOONER IF WE NEED TO. IF INFLATION JUST GOES THROUGH THE, THE CEILING. BUT SO THERE'S A FACTOR THAT WE CAN COME BACK TO THAT. JUST TO NOTE, UNDER THE NEW LEGISLATION, WE CANNOT COME BACK SOONER THAN EVERY THREE YEARS. THREE YEARS OKAY. IN FACT, WE'RE, YOU KNOW, WORKING WITH HDR TO BRING THIS FORWARD AS QUICKLY AS WE COULD TO MAKE SURE WE CAPTURED ALL THE FEES THAT WERE POSSIBLE AND EFFECTIVE ON SEPTEMBER 1ST. THEN THAT WILL BE ANOTHER THREE YEARS BEFORE WE COULD DO THAT. WE'D ONLY DONE THIS ABOUT A YEAR AND A HALF AGO. WE WANT TO MAKE SURE WE HAD THE WATER MASTER PLAN. WE UPDATED THAT AND BROUGHT YOU THIS AS QUICKLY AS WE COULD. THANK YOU, COUNCILMEMBER ZUNIGA. YEAH. BRIAN, I WANT TO SAY THANK YOU TO THE TEAM FOR GOING THROUGH THIS VERY THOROUGHLY. I REMEMBER SITTING UP HERE A YEAR, YEAR AGO WHEN WE DISCUSSED THE IMPACT FEE. AND, YOU KNOW, THE BUILDERS HAD CONCERNS. SO WE MET AT SORT OF IN THE MIDDLE, AND WE KNEW THIS WAS GOING TO COME BACK. AND SO WE'RE LOOKING AT IT AND SO MANY PROJECTS THAT ARE GOING OUT INTO THE NEXT TEN YEARS. SO I THINK IT IS IT IS FAIR TO ASSESS THAT IMPACT FEE. AND YOU MENTIONED THAT YOU YOU DON'T WANT TO GO OVERBOARD WITH IT. IS THAT BECAUSE MAYBE WITH DEVELOPMENT STOP IF THEY THOUGHT THE IMPACT FEES WERE TOO HIGH, I MEAN, BECAUSE IT'S ONLY A ONE TIME FEE, YOU KNOW. NO, IT'S MORE AND AGAIN, THERE'S SOME RECENT CHANGES IN THAT THAT WILL BE COMING IN THE IMPACT FEE LEGISLATION THAT ARE GOING TO BE EFFECTIVE SEPTEMBER 1ST. AND PART OF THAT, AND THOSE CHANGES ARE BEING MADE AND UNDER UNDER KIND OF BEING MORE OPEN AND TRANSPARENT ABOUT THE WAY CITIES ARE UNDERTAKING THEIR BUSINESS. 
          AND SO PART OF THAT IS GOING TO BE THAT FOR, FOR EXAMPLE, BEFORE YOU CAN UPDATE YOUR IMPACT FEES AGAIN IN THREE YEARS, THE CITY WILL HAVE TO CONDUCT AN AUDIT OF YOUR OF YOUR IMPACT FEE FUNDS BY A CERTIFIED PUBLIC ACCOUNTANT. AND SO IN THE PAST, YOU'VE ALWAYS WANTED TO MAKE SURE THAT WE'RE NOT. LEVYING MORE IN IMPACT FEES THAN WHAT THE CITY IS SPENDING, BECAUSE THAT CAN TRIGGER SOME REFUND REQUIREMENTS ON ON IMPACT FEES. SO YOU'RE TRYING TO KIND OF FIND THAT HAPPY MEDIUM WHERE YOU'RE TRYING TO MAXIMIZE THE USE OF IMPACT FEES. BUT AT THE SAME TIME, WE DO WANT TO MAKE SURE THAT WE'RE BASING IT OFF WHAT WE THINK IS REALISTIC AND CAN CAN BE REALISTICALLY ACCOMPLISHED IN TEN YEARS. BECAUSE IF WE'RE BASING THOSE IMPACT FEES ON ON PROJECTS THAT DON'T GET BUILT, FOR EXAMPLE, THEN THAT CAN TRIGGER, THAT CAN TRIGGER REFUND. LAWS FOR THOSE IMPACT FEES. I NOTICED IN THE TABLE YOU WERE SHOWING US YOU REALLY HAD TWO COLUMNS AND THERE WAS 50, 50, 100, ZERO, ZERO HUNDRED. LIKE, WHY IS IT JUST IN THOSE TWO IN THAT PERIOD? WHY DON'T YOU HAVE LIKE MORE THAN TWO COLUMNS LIKE 75? WHY IS IT A MORE GRADUAL? IS IT BECAUSE THE PROJECT JUST NEEDS TO BE COMPLETED? I, I THINK THAT I THINK THE COLUMNS THAT YOU'RE TALKING ABOUT ARE OUR PERCENT UTILIZATION COLUMNS. AND SO AGAIN, ALL OF THE FUTURE OR PROPOSED PROJECTS WE HAVE THAT THEY ARE NOT CURRENTLY UTILIZED. 
          BUT THEN IN THAT 2035 COLUMN, THAT'S WHERE WE HAD THE VALUES OF LIKE 75% OR 100% OR WHATEVER THOSE, WHATEVER THOSE VALUES ARE FOR THAT PARTICULAR PROJECT. AND AGAIN, WHAT THAT REPRESENTS IS THAT SOME OF THESE PROJECTS, THEY'RE GOING TO BE BUILT WITH CAPACITY. THAT'S GOING TO BE MORE CAPACITY THAN WHAT'S NEEDED JUST FOR THE NEXT TEN YEAR GROWTH. SO THOSE PROJECTS ARE BEING BUILT FOR THE NEXT 15 YEARS WORTH OF GROWTH, OR 20 YEARS WORTH OF GROWTH OR WHATEVER THAT NUMBER IS GOING TO BE, OR THEY'RE BEING BUILT, YOU KNOW, SO LATE IN THIS TEN YEAR 
          [02:05:02]
PERIOD THAT THERE'S JUST NOT A LOT OF GROWTH ON THOSE PROJECTS REMAINING ONCE THEY'RE BUILT. SO AGAIN, WE WORKED WITH CITY STAFF TO DETERMINE THOSE PERCENT UTILIZATION NUMBERS. BASICALLY, HOW MUCH OF THAT PROJECT CAPACITY DO WE THINK IS GOING TO BE UTILIZED AT THE END OF THE TEN YEAR PERIOD? AND THAT IS SOMETHING THAT I DID NOT POINT OUT DURING MY PRESENTATION. BUT IT IS IMPORTANT TO NOTE, IS THAT WE CAN ONLY INCLUDE PROJECTS THAT ADD CAPACITY IN THE IMPACT FEE CALCULATION. SO THESE ARE THERE'S NO LIKE REHAB AND REPLACEMENT PROJECTS IN HERE. 
          THERE'S NOTHING LIKE THAT. IT'S JUST PROJECTS THAT ARE ADDING CAPACITY TO THE SYSTEMS. IT'S NOT OPERATION MAINTENANCE COST, BUT THAT PERCENT UTILIZATION THAT WE'RE USING. THAT'S BECAUSE ACCORDING TO STATE STATUTE, WE CAN ONLY APPLY THE PERCENT OF THAT PROJECT, THE PERCENT OF THAT PROJECT COST THAT WE EXPECT TO BE UTILIZED IN THIS TEN YEAR WINDOW. SO, FOR EXAMPLE, IF YOU HAVE A PROJECT THAT COST $10 MILLION, BUT WE THINK THAT AT THE END OF THIS TEN YEAR WINDOW, WE'RE ONLY GOING TO USE 25% OF THAT PROJECT CAPACITY, THEN BY LAW, WE CANNOT INCLUDE THE FULL $10 MILLION INTO THE IMPACT FEE CALCULATION. WE CAN ONLY INCLUDE $2.5 MILLION. WE CAN ONLY INCLUDE THAT PERCENT OF THAT PROJECT THAT WE'RE ACTUALLY UTILIZING IN THIS WINDOW. NOW, AGAIN, WHEN WE UPDATE THIS IN THREE YEARS, WE'LL BE SHIFTING, YOU KNOW, THREE YEARS DOWN THE ROAD. SOME OF THESE PROJECTS WILL BE BUILT AND THEY WILL HAVE EXCESS CAPACITY IN THEM AT THAT TIME STILL. AND SO AT THAT POINT, WE WOULD WE WOULD STILL BE ABLE TO CAPTURE THAT COST OF THOSE PROJECTS AS THEY'RE BUILT, AND THEY KIND OF GO FROM THE BOTTOM OF THAT TABLE, IF YOU WILL, UP TO THE TOP OF THAT TABLE FOR PROJECTS THAT ARE ALREADY THERE, AS WELL AS UPDATING THESE PERCENT UTILIZATIONS FOR THOSE PROJECTS THAT ARE STILL UNBUILT AS WE MOVE FORWARD INTO THAT WINDOW WITH WITH NEW GROWTH NUMBERS. THANK YOU. THAT'S A GOOD EXPLANATION. AND THANKS AGAIN FOR ALL THE HARD WORK. AND, YOU KNOW, GOING THROUGH THIS AND TRYING TO EXPLAIN IT TO US, YOU KNOW, I CAUGHT, YOU KNOW, THE BULK OF IT. SO IT'S A PRETTY SOUNDS PRETTY PRETTY FAIR YOU KNOW, TO LOOK AT THIS EQUATION. ALL RIGHT. ANYONE ELSE I HAVE I HAVE ONE MORE PIECE OF CONVERSATION I WANT TO HAVE BECAUSE IT'S BEEN, IT'S BEEN NOTED THAT OUR WATER RATES ARE GOING UP, WHICH IS THE RATE THAT, YOU KNOW, OUR CUSTOMERS ARE PAYING. AND AT THE SAME TIME, OUR IMPACT FEES ARE GOING UP. AND THE BUT WHY ARE BOTH GOING UP? FOR EXAMPLE, WE HAVE THE ALLIANCE REGIONAL WATER AUTHORITY PROJECT, WHICH IS A REALLY WHAT'S DRIVING THE INCREASES. WHY IS WHY IS IT THAT WE WEREN'T ABLE TO PAY FOR THAT PROJECT THROUGH IMPACT FEES? SO I'M I'M NOT THE CITY'S RATE CONSULTANT, SO I WILL NOT SPEAK TO ANY, ANY WATER OR WASTEWATER RATE INCREASES. BUT I WILL SAY, AS WAS STATED BEFORE, IMPACT FEES ARE A WAY TO HELP GROWTH PAY FOR ITSELF. THEY'RE NOT A PERFECT PANACEA, AND AT TIMES THEY'RE DEPENDING UPON CERTAIN PROJECTS AND THE WAY THOSE PROJECTS ARE FINANCED. SOMETIMES THERE IS MONEY GOING OUT THE DOOR, SAY, BECAUSE YOU HAVE TO BUILD SOME OF THESE PROJECTS AHEAD OF TIME, AHEAD OF GROWTH, BUT YOU ARE COLLECTING THOSE IMPACT FEES, AS WAS SAID NORMALLY AT THE TIME, THE BUILDING PERMIT IS ISSUED. SO SOME OF IT IS JUST A TIMING POINT WHERE SOME OF THAT MONEY'S GOING UP FRONT NOW, AND IT WILL TYPICALLY BE 2 TO 3 YEARS, PERHAPS BEFORE YOU SEE THIS INCREASED REVENUE COMING IN FROM THESE INCREASED IMPACT FEES, AGAIN, BECAUSE THEY'RE ASSESSED AT TIME OF PLAT. AND SO EVERYTHING THAT'S ALREADY PLOTTED IS PLOTTED UNDER THE ALREADY THE EXISTING IMPACT FEES. SO THERE'S A LITTLE BIT OF TIMING DIFFERENCE THERE. ADDITIONALLY, I WOULD SAY THAT A WATER RATES PAY FOR OPERATIONS. 
          AND SO TREATMENT TRANSMISSION ALL OF THOSE THINGS BEYOND THE CAPITAL IMPROVEMENTS THAT WE THAT IMPACT FEES PAY FOR. OKAY. SO TREATMENT, TREATMENT OF THE WATER AND THE TRANSMISSION OF THE WATER AND THE CULTIVATION OF THE REGIONAL WATER IS REQUIRED TO BE PAID FOR BY RATEPAYERS, WHICH IS. THAT'S RIGHT. THAT'S WHAT I ASSUMED. SO THAT'S KIND OF WHAT I WAS. THE POINT THAT I WAS TRYING TO MAKE HERE IS THAT THERE'S TWO DIFFERENT FORMS OF INCREASE. AND SO IF WE DON'T INCREASE THE IMPACT FEES, BECAUSE A LOT OF THESE PROJECTS, IT'S THE WATERSTONE WATER TANK, IT'S THE 1626 PUMP STATION. IT'S ALL OF THE INFRASTRUCTURE WITHIN THE CITY THAT WE'RE HAVING TO BUILD IN ORDER TO ADD THE OVERALL CAPACITY OF, BUT THE INCREASE IN SUPPLY IS BEING PAID BY RATEPAYERS. AND ALSO WATER IS GETTING MORE EXPENSIVE. BUT IN ORDER TO BRING THAT NEW WATER 
          [02:10:01]
SUPPLY ONLINE, THAT'S WHERE THE INCREASE IN WATER RATES HAS COME FROM. SO I JUST WANT TO MAKE THAT KIND OF CLEAR. YES, SIR. I THINK THE OTHER THING I WOULD SAY IS WE DIDN'T HAVE A WATER MASTER PLAN BEFORE, AND SO COMPLETING THAT PLAN GAVE US THE ABILITY TO PUT A TEN YEAR CAPITAL COST TOGETHER THAT WE THOUGHT WAS MORE ACCURATE AND REFLECTIVE OF ALL THE THINGS THAT WE'RE GOING TO BE DOING ON THE CAPITAL SIDE. WE DIDN'T HAVE THAT THE LAST TIME. SO THAT'S PART OF THE REASON FOR THIS INCREASE IS NOW THOSE PROJECTS ARE KNOWN AND WE HAVE A GOOD IDEA OF WHAT THOSE COSTS ARE, WHICH WE DIDN'T THREE YEARS AGO. I WANT TO MAKE ONE MORE COMMENT ABOUT ANTHEM IN PARTICULAR, BECAUSE ANTHEM WAS ENTITLED I BELIEVE, IN 2015, MAYBE RIGHT AT THE END OF 2015, BEGINNING OF 2016. SO IT WAS BEFORE ANYONE HERE EXCEPT MAYBE JENNIFER OR SECRETARY WAS HERE. I DON'T THINK THERE'S ANY. ANYONE ELSE. TIM, YOU MIGHT HAVE BEEN HERE ACTUALLY, WHEN ANTHEM WAS DONE, BUT THE. SO ANTHEM IS ACTUALLY NOT IN KYLE. IT'S IN MOUNTAIN CITY. SO AND THAT WAS SOMETHING THAT, YOU KNOW, IF YOU GO BACK AND ACTUALLY LOOK AT THE RECORDS AND THE CONVERSATIONS THAT TOOK PLACE AT THAT TIME, IT WAS THE CITY OF KYLE WAS VERY MUCH TRYING TO MAKE ANTHEM A PART OF THE CITY OF KYLE, AND THERE WAS AN AGREEMENT THAT WAS INITIALLY CONCEIVED FOR ETJ SWAPS AND ANNEXATION THAT WOULD HAVE. BUT IT INVOLVED, BUT IT INVOLVED MOUNTAIN CITY. IT INVOLVED THE CITY OF KYLE. IT INVOLVED THE DEVELOPER AND ULTIMATELY THE YOU KNOW, IF ANY ONE OF THOSE ENTITIES OBJECTED, THEN THEY THEN THEN ESSENTIALLY WE WEREN'T ABLE TO PUT THAT PROJECT TOGETHER. SO THE CITY OF KYLE'S RESPONSIBILITY TO ANTHEM IS PURELY AS A WATER SUPPLIER, AS OPPOSED TO IN CITY PROJECTS WHERE WE HAVE A LOT MORE RESPONSIBILITIES TO THEM. SO THERE IS A THERE IS A DIFFERENCE THERE. AND I WILL SAY, IF, YOU KNOW, I WOULD SAY THAT THE CITY OF KYLE PROBABLY WOULD NOT DO THAT DEAL TODAY. SO LIKE IF THIS COUNCIL WAS ON WAS HAVING THAT PROPOSAL WITHOUT BEING ABLE TO ACHIEVE THE ANNEXATION, WE WOULD NOT HAVE APPROVED IT AT ALL. SO THERE WOULD BE NO ANTHEM. ANTHEM EXISTS BECAUSE OF THE DECISIONS OF A DIFFERENT COUNCIL AT A DIFFERENT TIME. AND THEY HAD THEIR REASONS AND IT WAS, YOU KNOW, AND THEY THEY WANTED TO SEE THOSE PARTICULAR TYPES OF HOMES COME INTO THE REGION. AND THEY THOUGHT THAT THAT WAS IMPORTANT ENOUGH IN ORDER TO DEDICATE AND COMMIT THE WATER SUPPLY. BUT AT THE SAME TIME, THIS CITY COUNCIL AND FOR MANY YEARS THIS COUNCIL HAS BEEN, YOU KNOW, VERY COMMITTED TO STOPPING THE PROLIFERATION OF ETJ DEVELOPMENT AND OUT OF CITY DEVELOPMENT BECAUSE IT IS VERY HARMFUL ON OUR OUR FINANCES. AND IT'S BEEN POINTED OUT, IT CREATES AN UNDUE BURDEN ON OUR LOCAL INFRASTRUCTURE THAT THE FOLKS WHO LIVE THERE DON'T HAVE TO PAY. SO, FOR EXAMPLE, YOU DON'T AND YOU ALSO DON'T HAVE TO PAY A MOUNTAIN CITY TAX. YOU PAY A MUD TAX. AND THAT THAT IS WHAT THE DEVELOPERS CHARGE YOU TO HAVE BUILT OUT MOUNTAIN CITY. 
          BUT THERE'S YOU'RE NOT REQUIRED TO PAY FOR ANY OF THE CITY INFRASTRUCTURE. SO THAT'S THAT'S WHY THAT THAT CAME TO BE SIX CREEKS IS ALSO AN EXAMPLE. AND IF YOU GO BACK AND LOOK AT THE TOLL BROTHERS, WHICH IS THE ONLY PROJECT THAT HAS BEEN VOTED ON SINCE I'VE BEEN HERE, SIX CREEKS WAS ENTITLED BEFORE I GOT HERE. IT WAS IN LIKE APRIL OR MAY OF 2016 WHEN SIX CREEKS WAS ENTITLED. YOU KNOW, IT'S PROBABLY ONE OF THE MOST SWEETHEART DEALS THAT ANY PROJECT MAY BE SECOND ONLY TO ANTHEM AT THE TIME BECAUSE OF THE WAY THAT DEAL GOT PUT TOGETHER. BUT IT VERY MUCH, YOU KNOW, WE HAD TO GO AND HAVE A BOND ELECTION TO IMPROVE STAGECOACH ROAD AND ESSENTIALLY THE DEVELOPERS AND ANYONE WHO LIVES IN SIX CREEKS DOES NOT HAVE TO PAY FOR THAT. AND SO WHEN THE TOLL BROTHERS PROPOSAL CAME, AS THEY'RE PUTTING IN THEIR ADDITIONAL PHASES, THE COUNCIL WAS VERY RESOLUTE IN SAYING, WE ARE NOT GOING TO WE'RE GOING TO DO ANYTHING. AND THEY ALREADY HAD AN INTERIM DEVELOPMENT AGREEMENT, BUT WE WORKED WITH THEM FOR FULL ANNEXATION. AND IT WAS A IT WAS VERY DIFFICULT FOR US TO GET THAT PROJECT APPROVED. BUT WE DID AND THEY ARE NOW ANNEXED. AND SO THEY ARE GOING AS THOSE HOMES COME IN, THEY WILL BE TAXPAYERS AND VOTERS AND PAYING FOR STAGECOACH AND GETTING LOWER WATER RATES. AND SO IF THERE WAS EVER A WAY TO GET ANTHEM TO COME IN, BUT WE AT THE TIME THE LAW DID NOT ALLOW IT, WHICH THE LAW WAS RECENTLY CHANGED WITH SENATE BILL 2302. THAT WOULD HAVE ALLOWED IT. IF THAT BILL WAS IN PLACE, ANTHEM WOULD BE A CITY OF KYLE PROJECT BECAUSE ESSENTIALLY IT GOT HELD HOSTAGE BY MOUNTAIN CITY WHO REFUSED TO RELEASE THE ETJ. SO THAT'S THAT'S THE HISTORY OF ANTHEM AND HOW THAT PROJECT CAME TO BE. AND I WISH IT WAS DIFFERENT, BUT THAT'S JUST THE WAY THAT IT IS. SO, COUNCILOR HARRIS. JUST A QUICK COMMENT ABOUT THE WATER AND 
          [02:15:03]
WASTEWATER BILLS, THE WATER AND WASTEWATER DEPARTMENTS ARE ACTUALLY ENTERPRISES. THEY ARE REQUIRED TO PAY THEIR OWN WAY WITHOUT TAXPAYER SUBSIDIES. SO SETTING THE RATES DEPENDS ON HOW MUCH IT COSTS TO BRING THAT TO THE RIGHT, TO THE TAXPAYER OR TO THE CUSTOMER. IT'S NOT TAXPAYER TO THE CUSTOMER. AND THEN ALSO ON THOSE BILLS, IT IT IT VARIES BECAUSE IT THOSE BILLS. MY BILL RUNS $100 A MONTH. USUALLY I HAVE A SMALL HOUSE IN IN THE CITY LIMITS, VERY SMALL YARD, ALMOST ALL PLANTED AND NATIVES. BUT ON THAT BILL IS WASTEWATER AND WATER, BUT A BUNCH OF OTHER THINGS. AND IT IS THE WASTEWATER AND WATER THAT WE ARE LOOKING AT THE INCREASES ON. IT DOES NOT MEAN YOUR TOTAL BILL IS GOING UP TO THAT AMOUNT. ALL RIGHT. ANYONE ELSE MOTIONS? MAYOR, I'D LIKE TO MAKE A MOTION TO APPROVE AGENDA ITEM 25. SECOND. ALL RIGHT. MOTION BY MAYOR PRO TEM, SECONDED BY COUNCILMEMBER ZUNIGA, THAT WE APPROVE. AGENDA ITEM 25. ANY FURTHER DISCUSSION ON THE MOTION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED? ALL RIGHT. MOTION CARRIES 7 TO 
          [26) Consider approval of a resolution authorizing the City Manager to execute a contract with TMT Solutions, Inc. for the SCADA Remote Site Monitoring project in the amount of $4,373,792.94 plus a contingency of $874,758.59 for a total amount not to exceed $5,248,551.53, based on RFP 2025-RFP-010.]
          [27) Consider approval of Amendment No. 1 to Task Order No. 5 with HDR Engineering, Inc. for the SCADA (Supervisory Control and Data Acquisition) Upgrades Project in the amount of $294,639.36 for a total task order amount of $519,039.36.]
0. THANK YOU VERY MUCH. OUR NEXT UP IS AGENDA ITEM 26. CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH TMT SOLUTIONS FOR SCADA REMOTE SITE MONITORING PROJECT IN THE AMOUNT OF $4,373,792.94, PLUS A CONTINGENCY OF $874,758.59, FOR A TOTAL AMOUNT NOT TO EXCEED $5,248,551.53 BASED ON RFP 2025, ETC. MISS TRUELOVE, GOOD EVENING. ROSIE TRUELOVE, DIRECTOR OF ADMINISTRATIVE SERVICES THE WATER UTILITY DIRECTOR, MIKE MURPHY IS GOING TO COVER ITEM 26 AND 27 RELATED TO OUR SCADA SYSTEM. GOOD EVENING. WOULD YOU PREFER ME TO BRING UP AGENDA ITEM 27 AT THE SAME TIME? YEAH, THAT'D BE GREAT. ALL RIGHT. WE'RE GOING TO BRING UP AGENDA ITEM 27. ALSO CONSIDER APPROVAL OF AMENDMENT NUMBER ONE, TASK ORDER NUMBER FIVE WITH HDR ENGINEERING FOR UPGRADES PROJECT IN THE AMOUNT OF $294,639.36, FOR A TOTAL TASK ORDER AMOUNT OF $519,039.36. GO AHEAD. GOOD EVENING, MAYOR AND COUNCIL, MIKE MURPHY, DIRECTOR OF WATER UTILITIES. AND THAT WE'RE GOING TO BE TALKING ABOUT OUR SCADA SYSTEM. AND SO I THOUGHT WE'D JUST TAKE THIS OPPORTUNITY TO QUICKLY DESCRIBE TO YOU THE SCADA SYSTEM, WHAT THE SYSTEM IS AND THE BENEFITS IT PROVIDES. OUR WATER SYSTEM. 
          SO SCADA IS AN ACRONYM FOR SUPERVISORY CONTROL AND DATA ACQUISITION. VERY SIMPLY, IT PROVIDES A CENTRALIZED REMOTE MONITORING AND CONTROL OF THE CITY'S WATER AND WASTEWATER INFRASTRUCTURE. THE SYSTEM IS DISPLAYED IN SIGNS. WE'LL TALK ABOUT THAT IN A SECOND. BUT SO WHAT THAT MEANS IS THE SYSTEM IS LIKE THE CENTRAL NERVOUS SYSTEM OF OUR WATER AND WASTEWATER OPERATIONS. WE HAVE OUR PUMPING SYSTEM. WE HAVE, WHICH IS HAS SEVERAL PUMPS AND MOTORS AND ALL THAT STUFF. GOOD STUFF. LOCATED AROUND THE CITY. WE HAVE OUR TRANSMISSION SYSTEM THROUGHOUT THE CITY. EVERYTHING THAT WE USE AND OPERATE TO DELIVER WATER AND TREAT WASTEWATER IS CONTROLLED BY OUR SCADA SYSTEM, AND CURRENTLY THE SYSTEM HAS DISPLAYED SIGNS OF AGING AND FAILURE OVER THE YEARS, INCLUDING PERSISTENT COMMUNICATION FAILURES, LOSS OF FUNCTIONAL CONTROL CAPABILITIES, OUTDATED, UNRELIABLE HARDWARE. SO KIND OF WHAT WE TRIED TO COME UP WITH. ON THE AGE OF OUR SCADA SYSTEM IS CAN YOU COMPARE THE CELL PHONE THAT YOU HAD 20 YEARS AGO WITH THE CELL PHONE THAT YOU HAVE TODAY? THAT'S SORT OF WHERE WE ARE WITH OUR SCADA SYSTEM. SO THE SCADA SYSTEM, WHAT IT DOES IS IT CONTROLS TANK LEVELS, SYSTEM PRESSURES, WATER QUALITY AND METRICS, INFRASTRUCTURE STATUS, OPERATIONAL STATUS AND THE SYSTEM WIDE POWER STATUS. 
          IT'S HOW WE GET OUR INFORMATION. IT'S HOW WE ADDRESS THINGS ONCE IT COMES IN TO US REMOTELY, SO THAT WE CAN OPERATE OUR SYSTEM SUCCESSFULLY. THE PROJECT WILL BE COMPLETED IN TWO PHASES. 
          PHASE ONE IS THE DETAILED DESIGN OF HARDWARE, SOFTWARE AND AN IMPLEMENTATION PLAN. THE TARGET COMPLETION DATE IS NINE MONTHS, WHICH IS AN EXPEDITED SCHEDULE. IT WAS ORIGINALLY SCHEDULED FOR 12 MONTHS. AND SO WE ADDRESSED THIS PROJECT AS A GOTTA GO PROJECT. AND SO WE HAD THE CONTRACTOR TAKE OFF PORTIONS OF IT. SO WHAT WE'RE ASKING COUNCIL TO DO TONIGHT IS CONSIDER 
          [02:20:06]
APPROVAL OF AMENDMENT NUMBER ONE TO TASK ORDER NUMBER FIVE WITH HDR ENGINEERING TO PROVIDE THE SUPERVISOR THE BASICALLY THE SCADA SYSTEM WITH UPGRADES. AND THAT'S BASICALLY IT. DOES ANYBODY HAVE ANY QUESTIONS FOR MR. MURPHY ON ITEMS 26 AND 27? COUNCILMAN HARRIS? YEAH, JUST COUNSELOR. GO AHEAD. YEAH. MIKE, I JUST WANT TO GO. DOES THIS TIE INTO OUR ARMY SYSTEM FOR WHY? READS WHAT'S GOING FROM TOWER TO TOWER BACK TO THE CENTRAL HUB? I'M SORRY. COULD YOU REPEAT THAT? DOES IT TIE INTO ARMY? IS. WHAT ARE YOU SAYING? THAT THE AUTOMATED METERING TECHNOLOGY THAT WE'RE IMPLEMENTING. WELL, THAT'S WHAT ARMY IS ALSO THE SIGNAL, THE TOWERS THAT COME BACK AS WELL. SO IT'S THE ENTIRE PROCESS THROUGH IT. NOT JUST THE METERS. SO IT SENDS A SIGNAL THROUGH TOWERS. OR ARE WE GETTING THOSE SIGNALS THROUGH THOSE TOWERS OR HOW ARE WE GETTING THE SIGNAL BACK FROM THE SCADA SYSTEM? YES, IT'S GOING TO BE IT IS A REMOTE CONTROL SYSTEM THAT THE DATA IS DELIVERED THROUGH CABLE. AND SO WE'VE GOT WE'VE GOT TOWER CONTROL AND IT'S GOING TO BE REPEATING ON THE TOWERS. AND IT'S ALSO GOING TO HAVE THE UNDERGROUND CABLE SYSTEMS THAT THAT DIRECTLY LINE INTO THE SCADA SYSTEM. OKAY. SOUNDS GOOD. AND THEN WHAT'S THE TIMELINE ON THIS? I'M SORRY, I DIDN'T HEAR IT. YEAH. SO THE ANTICIPATED DATE IS SOMEWHERE BETWEEN JUNE AND JULY. IT'S A NINE MONTH SCHEDULE. ONCE WE APPROVE THE CONTRACT. OKAY. 
          SOUNDS GOOD. DOES THIS TIE IN WITH THE PLATFORM FOR THE ARMY AT ALL? THE DASHBOARD. WHAT WE'RE HOPING TO CREATE IS AN INTEGRATION SYSTEM FOR THE SCADA SYSTEM THAT MAY HAVE THE POSSIBILITY OF TYING INTO THE ARMY SYSTEM. I DON'T KNOW AT THIS POINT WHETHER WE'RE GOING TO BE ABLE TO DO IT, BUT THAT'S DEFINITELY GOING TO BE SOMETHING THAT WE'RE GOING TO LOOK AT. 
          SOUNDS GOOD. IT'S ALL THE QUESTIONS I HAD. THANK YOU. THANK YOU MIKE. I JUST WANT TO COMMENT THAT THESE UPGRADES, THE ARMY SYSTEM AND THE SCADA SYSTEM ARE REALLY CRUCIAL FOR OUR MANAGEMENT OF WATER AND WASTEWATER, ESPECIALLY THE WATER DELIVERY, FRESH WATER. IT REDUCES THE LOSS OF WATER. IT HELPS US MANAGE AND REALIZE WHEN THERE ARE BREAKS IN ANY PART OF THE SYSTEM. AND THE ARMY ESPECIALLY HELPS THE RESIDENT KNOW WHERE THEIR WATER USE IS GOING. SO THESE ARE REALLY GREAT FOR WATER CONSERVATION MEASURES AND IMPORTANT. YEAH THAT'S RIGHT. AND THE SKATER SYSTEM WILL ALSO HELP US WITH THAT BECAUSE WE CAN WE CAN SEE WHAT THE WATER PRESSURE IS IN OUR SYSTEM. WE CAN SEE WHAT THE TANK LEVELS ARE. AND SO USING THOSE TWO TECHNOLOGIES TOGETHER AND MAYBE WE'LL BE ABLE TO INTEGRATE THEM, I'M NOT SURE. BUT USING THOSE TWO TECHNOLOGIES TOGETHER, WE SHOULD BE ABLE TO IDENTIFY ANY EMERGENCY SITUATION LIKE THAT QUICKLY. ALL RIGHT. ANYONE ELSE? I MAKE A MOTION TO APPROVE AGENDA ITEMS 26 AND 27. SECOND MOTION BY THE MAYOR, SECONDED BY COUNCILMEMBER MCKINNEY, THAT WE APPROVE AGENDA ITEMS 26 AND 27. 
          IS THERE A DISCUSSION ON THAT MOTION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED? THANK 
          [28) Consider approval of a resolution finding public convenience and necessity and authorizing the use of eminent domain to condemn if necessary a 2,973 square foot parcel of and in fee simple and a public utility easement over a 879 square foot parcel of land (as described in Exhibits “A” and “A-1” to the Resolution) from certain real property owned by Michael A. and Mary C. Lehman for the public use and purpose of construction of public roadway improvements and public drainage and utility infrastructure improvements for the Bunton Creek Road improvement project. (ROLL CALL VOTE REQUESTED) ]
YOU. ALL RIGHT. MOTION CARRIES 7 TO 0. THANK YOU MIKE. ALL RIGHT. NEXT UP IS AGENDA ITEM NUMBER 28. CONSIDER APPROVAL OF A RESOLUTION, FINDING PUBLIC CONVENIENCE AND NECESSITY, AND AUTHORIZING THE USE OF EMINENT DOMAIN TO CONDEMN, IF NECESSARY, A 2973 SQUARE FOOT PARCEL OF LAND IN FEE SIMPLE AND A PUBLIC UTILITY EASEMENT OVER AN 879 SQUARE FOOT PARCEL OF LAND, IS DESCRIBED IN EXHIBITS A AND A1 TO THE RESOLUTION FROM CERTAIN REAL PROPERTY OWNED BY MICHAEL A AND MARY C LAYMAN, FOR THE PUBLIC USE AND PUBLIC CONSTRUCTION OF PUBLIC ROADWAY IMPROVEMENTS AND PUBLIC DRAINAGE AND UTILITY INFRASTRUCTURE IMPROVEMENTS FOR THE BUNTON CREEK ROAD IMPROVEMENT PROJECT. MISS SCHMITZ. GOOD EVENING, MAYOR AND COUNCIL. AMBER SMITH, ASSISTANT CITY MANAGER. WE JUST HAVE ONE OF THESE FOR YOU TONIGHT. SO THIS IS ON BUNTON CREEK ROAD IN 2022, A CITY OF KYLE VOTERS APPROVED PROPOSITION A, A ROAD BOND FOR EIGHT TRANSPORTATION PROJECTS ACROSS KYLE, TOTALING 10.3 TOTAL MILES OF NEW LOCATION RECONSTRUCTION AND WIDENING PROJECTS TO IMPROVE THE CITY'S TRANSPORTATION NETWORK. THIS PROJECT WILL IMPROVE BUNTON CREEK ROAD FROM LAYMAN ROAD TO PORTER COVE. HERE YOU CAN SEE THE LIMITS OF THE PROJECT AND THE PARCEL. THE ALIGNMENT AND DESIGN FEATURES WERE APPROVED BY COUNCIL IN JANUARY OF 2024. TASK ORDER TO BG TO COMPLETE PRELIMINARY DESIGN APPROVED IN MARCH OF 2023 AND THE TASK ORDER TO PGE TO COMPLETE FINAL DESIGN WAS APPROVED IN APRIL OF 2024. THIS IS INFORMATION ABOUT THE SITE. WE NEED A PARCEL 14 AND 14 E. HERE YOU CAN SEE THEY'RE 
          [02:25:01]
INDICATED IN GREEN AND PURPLE TO ACQUIRE THE RIGHT OF WAY AND EASEMENTS NEEDED FOR THE ROADWAY. A SURVEY WAS COMPLETED AND AN APPRAISAL WAS PERFORMED ON THE NEEDED TRACT. PROPERTY INTERESTS HERE INCLUDE. FEE SIMPLE RIGHT OF WAY OF 2973FT■!, AND A PUBLIC UTILITY EASEMENT OF 879FT■!S. IMPROVEMENTS WITHIN TE RIGHT OF WAY AND EASEMENT INCLUDE ROADWAY RECONSTRUCTION, DRAINAGE, AND UTILITY INFRASTRUCTURE. SUMMARY. A PUBLIC CONVENIENCE AND NECESSITY REFERS TO THE COUNCIL DETERMINING WHETHER THE CITY'S ACQUISITION OF AN INTEREST IN A SPECIFIC PIECE OF REAL PROPERTY, SUCH AS AN EASEMENT OR FEE. SIMPLE TITLE IS NECESSARY TO EFFECTUATE A PARTICULAR PUBLIC USE FOR THE PUBLIC'S CONVENIENCE AND NECESSITY. IN THIS SITUATION, THE PCN FINDS THAT THE BUTTON CREEK ROAD PROJECT IS NECESSARY AND REQUIRED TO PROMOTE THE PUBLIC HEALTH, SAFETY AND WELFARE OF THE COMMUNITY AND THAT THE ACQUISITION OF THE IDENTIFIED PROPERTY IS REQUIRED TO COMPLETE THE PROJECT. WHEN THE PROPERTY OWNER AND THE CITY ARE UNABLE TO REACH A NEGOTIATED AGREEMENT, THE PCN AUTHORIZES THE CITY TO INITIATE EMINENT DOMAIN PROCEEDINGS, IF NECESSARY, TO ACQUIRE THE NEEDED PROPERTY. AND WE WOULD ASK THAT YOU APPROVE THE RESOLUTION, PLEASE. ALL RIGHT. THANK YOU, MISS RICE. 
          DOES ANYBODY HAVE ANY QUESTIONS OR COMMENTS ON THIS PARCEL? COUNCILMEMBER TOBIAS, REAL QUICK, HAVE WE BEEN IN TOUCH WITH THE PROPERTY OWNERS YET? YES, SIR. THEY'VE BEEN WORKING WITH US AND THEY UNDERSTAND THE PROCESS OF WHY WE NEED THE ACQUISITION. YES, SIR. WE? YES, WE WORK WITH THEM AND WE'LL WORK WITH THEM RIGHT UP UNTIL UNTIL THE END. SO THANK YOU. RIGHT. 
          ANYONE ELSE? ALL RIGHT. I HAVE TO MAKE A MOTION. I MOVE THAT THE CITY OF KYLE AUTHORIZE THE USE OF THE POWER OF EMINENT DOMAIN TO ACQUIRE 2973FT■!S OF LAND IN FEE SIMPLE, AND A PUBLIC UTILITY EASEMENT OVER 879FT■!S F LAND FROM PROPERTY OWNED BY MICHAEL AND MARY C LAYMAN, AS DESCRIBED IN AGENDA ITEM 28, FOR THE PUBLIC USE OF CONSTRUCTING AND OPERATING PUBLIC ROADWAY IMPROVEMENTS, DRAINAGE IMPROVEMENTS, AND UTILITY IMPROVEMENTS FOR THE BUNTON CREEK ROAD IMPROVEMENT PROJECT. MOTION BY MAYOR SECOND BY MAYOR PRO TEM THAT WE APPROVE. AGENDA ITEM 28. IS THERE A DISCUSSION ON THE MOTION? THIS IS A ROLL CALL VOTE. MITCHELL. YES. 
          HARRIS. YES. TOBIAS. YES. ZUNIGA. YES. MCKINNEY. YES. HEIZER. YES. RIZZO. YES. MOTION CARRIES 7 TO 0. NEXT UP, WE HAVE THE. WE STILL HAVE SEVEN MORE ITEMS, BUT I THINK MAYBE WE NEED ABOUT A TEN MINUTE BREAK, SO THAT SOUNDS GOOD. WE'VE BEEN GOING AT IT NOW FOR A WHILE. ALL RIGHT. TO ENHANCE THEIR SKILLS AND THAT. CALL THIS MEETING BACK TO 
          [29) Consider approval of a resolution to record City Council's vote to place a proposal on the agenda of a future City Council meeting as an action item to adopt an ad valorem tax rate that is higher than the no-new-revenue tax rate for Tax Year 2025 (Fiscal Year 2025-26) for the City of Kyle; making findings of fact; and providing for related matters.  (ROLL CALL VOTE IS REQUESTED)]
ORDER. NEXT UP IS AGENDA ITEM 29. CONSIDER APPROVAL OF A RESOLUTION TO RECORD CITY COUNCIL'S VOTE TO PLACE A PROPOSAL ON THE AGENDA OF A FUTURE CITY COUNCIL MEETING AS AN ACTION ITEM TO ADOPT AN AD VALOREM TAX RATE THAT IS HIGHER THAN THE NO NEW REVENUE TAX RATE FOR TAX YEAR 2025. FISCAL YEAR 2526 FOR THE CITY OF KYLE, MAKING FINDINGS OF FACT AND PROVIDING FOR RELATED MATTERS. THIS IS MR. ITEM. ROLL CALL VOTE IS REQUESTED. MAYOR. MAYOR. PRO TEM COUNCIL MEMBERS. FOR THE RECORD, I'M PERVEZ MOHIT, CITY'S DIRECTOR OF FINANCE. AND WE'RE GOING TO TALK ABOUT TAX CODES. SO WE'RE GOING TO MAKE IT VERY INTERESTING. AND IT'S GOING TO BE BRIEF. WHY AND WHEN THIS RESOLUTION IS REQUIRED, WE'RE GOING TO GO OVER THE PROPERTY TAX RATE STRUCTURE. VERY BRIEFLY. WE'RE GOING TO GO OVER THE PRIMARY FACTORS PEREZ. HOW ABOUT NOW? I CAN HEAR YOU BUT NOT PEREZ IS YOUR IS YOUR UP? YES SIR. CAN YOU HEAR US NOW. OH I CAN HEAR HIM NOW. HE JUST POPPED UP. YOU THE MUTE WAS ON. YOU'RE GOOD NOW. GOOD. SO. 
          WHOEVER IS IN THE CONTROL ROOM, I AM UNABLE TO MOVE THE SLIDES. CAN YOU MOVE THE SLIDES FOR ME? BACK TO THE. THERE YOU GO. SLIDE NUMBER ONE. THANK YOU. SO WE'RE GOING TO TALK ABOUT THE PROPERTY TAX RATE HOW IT'S CALCULATED REAL BRIEFLY. WE WON'T GO INTO THE TECHNICALITIES OF IT. THE CHANGE IN AVERAGE VALUATION FOR 2025 AND THE KEY DATES FOR PUBLIC HEARINGS AND TAX RATES. 
          AND THEN WE'LL WRAP UP WITH THE RECOMMENDATIONS FOR COUNCIL. SO WHY IS THIS RESOLUTION 
          [02:30:01]
NECESSARY. WHY ARE WE DOING THIS TONIGHT. SO WHEN THE CITY'S PROPOSED TAX RATE EXCEEDS THE NO NEW REVENUE TAX RATE. BASED ON THE TAX TEXAS TAX CODE, A RESOLUTION MUST BE CONSIDERED BY CITY COUNCIL BEFORE THIS GOVERNING BODY VOTES ON THE PROPERTY TAX RATE. YOU MUST VOTE ON THIS RESOLUTION PRIOR TO THAT THAT YOU'RE GOING TO PLACE A PROPOSAL TO INCREASE THE TAX RATE FOR THE CITY OF KYLE, AND I'LL GO IN A MINUTE. WHY IS IT CONSIDERED A TAX RATE INCREASE? AND WHAT THAT NO NEW REVENUE TAX RATE MEANS IN ADDITION? THE GOVERNING BODY, YOU AS A COUNCIL MUST ADOPT THIS RESOLUTION BEFORE WE PLACE THE AGENDA ITEM FOR THE PROPERTY TAX RATE ON SEPTEMBER 2ND FOR THE FIRST READING AND THEN AGAIN ON SEPTEMBER 16TH FOR THIS SECOND READING. THE TAX CODE FURTHER REQUIRES THAT WHEN WE ISSUE OR PUBLISH THE PUBLIC NOTICE FOR THE TAX RATE CONSIDERATION ON SEPTEMBER 2ND, AND THE PUBLIC HEARING ON THE TAX RATE, WHEN THAT NOTICE IS PUBLISHED, WE HAVE TO PUBLISH YOUR RECORD VOTE HOW YOU VOTED ON THIS RESOLUTION, YAY OR NAY OR YOU WERE ABSENT OR YOU ABSTAINED. THAT IS REQUIRED BY TAX CODE. SO LET'S TALK ABOUT THAT. THAT TAX RATE AT A VERY BASIC CONCEPT, THE VERY CORE UNDERSTANDING HOW THE TAX RATE SYSTEM WORKS IS I, I AM USING THIS SEESAW TO ILLUSTRATE HOW THE TWO SIDES MOVE AND IS BALANCED. ON ONE SIDE IS THE TAXABLE ASSESSED VALUATION. AND ON THE OTHER SIDE THE PROPERTY TAX RATE. THE CORE CONCEPT IS IF THE VALUATIONS GO UP, THE PROPERTY TAX RATES TYPICALLY WILL COME DOWN AND VICE VERSA. IF ALL THINGS ARE BEING REMAINING EQUAL. BUT AS REALITY HAS IT IN EVERY CITY, INCLUDING US, THERE ARE A NUMBER OF VARIABLES THAT AFFECT BOTH SIDES OF THIS EQUATION. THERE ARE SOME CITIES AROUND THE AUSTIN MSA THAT HAVE USED THIS CONCEPT TO KEEP THEIR TAX RATES BELOW $0.18. WESTLAKE HILLS BEE CAVES. LAKEWAY. SUNSET VALLEY ACTUALLY, SUNSET VALLEY HAS ZERO PROPERTY TAX. SO THIS IS THE UNDERLYING CORE CONCEPT OF HOW TAX RATE METHODOLOGY WORKS. BUT LIKE I SAID, THERE ARE A NUMBER OF VARIABLES THAT AFFECT THE TAX RATE CALCULATIONS. AS A MATTER OF FACT, THERE ARE 81 SEVERAL STEPS YOU MUST GO THROUGH TO CALCULATE THE TAX RATES. SO WHICH MEANS THERE ARE 81 AT LEAST 81 VARIABLES. BUT TONIGHT WE'RE ONLY GOING TO CAPTURE AND TALK ABOUT FIVE TOP VARIABLES THAT AFFECT PROPERTY TAX RATES, ESPECIALLY IN KYLE. NUMBER ONE CERTIFIED TAXABLE ASSESSED VALUATION FOR THE ENTIRE CITY. 
          NUMBER TWO CERTIFIED TAXABLE ASSESSED VALUATIONS FOR THE SIX TERRACES THAT WE HAVE IN KYLE. 
          NUMBER THREE CAPITAL SPENDING PLAN. THE CITY'S FIVE YEAR CAPITAL SPENDING PLAN WILL GO OVER THAT VERY BRIEFLY. NUMBER FOUR IS THE DEBT LEVEL DEBT LEVY FOR NEXT FISCAL YEAR. THAT IMPACTS THE TAX RATE. AND DEBT LEVY IS ONLY FOR THE TAX SUPPORTED PORTION OF OUR OUTSTANDING DEBT, NOT THE ENTERPRISE FUNDS SUCH AS THE UTILITIES. AND LASTLY, THERE ARE OTHER SOURCES OF REVENUE THAT AFFECT THE TAX RATE CALCULATIONS. IN OUR CASE, WE HAVE SALES TAX. PART OF OUR SALES TAX IS DEDICATED FOR PROPERTY TAX RATE REDUCTION. SO WE'LL GO OVER THOSE. AND THE WAY WE'RE GOING TO DO THIS IS I'M GOING TO BUILD UPON THESE FIVE FACTORS. AND AT THE END WE'LL WRAP UP WITH THE RESOLUTION. SO BEFORE WE BEGIN AND MY GOAL HERE IS THAT THERE WILL BE SOME NEW NUGGET OF INFORMATION FOR YOU, FOR STAFF AND FOR THE FOLKS IN 
          [02:35:04]
THE TV LAND THAT THEY WILL LEARN SOMETHING NEW OUT OF THIS PRESENTATION. SO LET'S BEGIN WITH THE TAX RATE. THE TAX RATE HAS, AND WE'VE TALKED ABOUT THIS IN PRIOR YEARS, HAS TWO COMPONENTS THAT MAKES UP THE TAX RATE. THE FIRST COMPONENT IS THE MAINTENANCE AND OPERATIONS RATE, WHICH IS ALSO REFERRED TO AS THE NO RATE. AND THIS BASICALLY COVERS THE GENERAL OPERATIONS OF THE GOVERNMENT LOCAL GOVERNMENT. SO FOR EXAMPLE, POLICE, LIBRARY, OTHER CITY MANAGER'S OFFICE, CITY ATTORNEY'S OFFICE, PARKS AND RECREATION. THESE ARE EXAMPLES OF GENERAL GOVERNMENT PAID WITH PROPERTY TAX REVENUE. IN OUR CASE, APPROXIMATELY 28% OF OUR GENERAL GOVERNMENT REQUIREMENTS IS FUNDED WITH PROPERTY TAX REVENUE ONLY 28%. THE REST OF IT IS COVERED WITH OTHER SOURCES OF REVENUE SUCH AS FRANCHISE TAX, SALES TAX, DEVELOPMENT FEES, THINGS LIKE THAT. THE SECOND COMPONENT OF THE PROPERTY TAX RATE IS THE INTEREST AND SINKING OR INS RATE. THIS ONLY COVERS THE DEBT LEVY OR THE REPAYMENT OF DEBT THAT IS DUE THE NEXT YEAR, FOR WHICH THE PROPERTY TAX IS BEING SET, NOT FOR WHAT WE OWE, BUT ONLY FOR WHAT IS DUE NEXT YEAR. 
          PRINCIPAL AND INTEREST ON TAX SUPPORTED PORTION OF OUR DEBT. SO IN OUR CASE, WE HAVE OUTSTANDING BONDS FOR ROAD BOND PROGRAM. WE BUILT THE PUBLIC SAFETY FACILITY WITH BONDS. SO WE HAVE THOSE BONDS OUTSTANDING. AND THEN WE HAVE WHEN WE BUILT THE PUBLIC LIBRARY WE HAD BONDS ISSUED FOR THAT. SO THESE TYPES OF BONDS THAT ARE FOR GENERAL GOVERNMENT TAX SUPPORTED ACTIVITIES OR CAPITAL INFRASTRUCTURE, THE PORTION OF PRINCIPAL AND INTEREST DUE NEXT YEAR IS INCLUDED IN THE INS PORTION OF THE TAX CALCULATION. SO THOSE TWO COMPONENTS MAKE THE TAX RATE FOR ANY CITY, ANY COUNTY. SO NO PLUS INS IS THE TAX RATE. SO NOW LET'S NOW THAT WE KNOW WHAT THE TWO COMPONENTS OF THE TAX RATE IS, HERE ARE THE THREE TYPES OF TAX RATES THAT WE TALK ABOUT EVERY YEAR. WHEN WE BEGIN TO SET THE TAX RATE NUMBER ONE, THE NO NEW REVENUE TAX RATE, ALSO REFERRED TO AS WHAT USED TO BE THE EFFECTIVE TAX RATE IN THE PRIOR TO SB, SB ONE, SB TWO. NO NEW REVENUE TAX RATE. IS THE TAX RATE THAT WILL RAISE THE SAME AMOUNT OF TAX REVENUE THAT WE RAISE FROM THE YEAR BEFORE, FROM THE EXACT SAME PROPERTIES ON THE TAX ROLL. SO IT IS ONE TAX RATE THAT WILL RAISE THE SAME AMOUNT OF MONEY OR TAX REVENUES AS IN THE CURRENT YEAR OR PRIOR YEAR FROM THE SAME PROPERTIES ON THE TAX ROLL. SO THAT IS THE NEW NO NEW REVENUE TAX RATE, MEANING IT'S NOT RAISING ANY ADDITIONAL NEW REVENUES. THIS RATE IS ALSO USED AS THE THRESHOLD OR THE YARDSTICK BY THE TAX CODE TO DETERMINE IF A TAXING ENTITY IS PROPOSING A TAX RATE THAT IS HIGHER THAN THE NO NEW REVENUE TAX RATE, AND IS CONSIDERED A TAX INCREASE. SO THIS IS THE YARDSTICK OR THE MEASURING STICK FOR THAT TEST. THE SECOND TYPE OF TAX RATE WE TALK ABOUT EVERY YEAR IS THE VOTER APPROVAL TAX RATE. SO WITHOUT GOING INTO THE TECHNICAL 81 STEPS OF CALCULATION, BASICALLY IT TAKES THE INS. WHAT WHAT INS RATE NEEDS TO BE IN PLACE SO THE CITY CAN PAY ITS DEBT OBLIGATIONS NEXT YEAR, PLUS A PORTION FOR MLNO THAT IS ALLOWED BY LAW. YOU CAN GO UP TO 3.5% FROM. THE YEAR BEFORE. THIS INCLUDES EXISTING 
          [02:40:14]
EXISTING PROPERTIES AND NEW PROPERTIES ADDED TO THE TAX ROLL. THE KEY THING TO REMEMBER ABOUT THIS TAX RATE IS IF THE CITY OR COUNTY OR ANY TAXING ENTITY PROPOSES A TAX RATE THAT IS HIGHER THAN THE VOTER APPROVAL TAX RATE, THEN YOU MUST SEEK THE VOTERS APPROVAL TO EXCEED THAT TAX RATE. SO IF THE COUNCIL DECIDED TO SET A TAX RATE THAT IS HIGHER THAN THE VOTER APPROVAL TAX RATE, THEN IT WOULD TRIGGER AN ELECTION IN NOVEMBER FOR THE VOTERS TO DECIDE IF THE CITY CAN HAVE THAT TAX RATE, IF THE VOTERS DO NOT APPROVE, THEN WE'LL HAVE TO COME BACK AND ADJUST THE TAX RATE AND THE SPENDING TO MATCH WHAT THE NEW PROPOSED TAX RATE THAT THE COUNCIL MIGHT CONSIDER. AND THEN FINALLY, THE PROPOSED TAX RATE, WHAT THE CITY OF KYLE IS PROPOSING FOR NEXT YEAR. AND WE'LL GO OVER THOSE VERY QUICKLY. SO WE'RE GOING TO GO INTO THESE BUILDING BLOCKS. THAT MAKES THE TAX RATE CALCULATION. SO WE'LL START. REMEMBER THOSE SIX FACTORS THAT WE TALKED ABOUT. WE'LL TALK ABOUT EACH ONE OF THOSE VERY BRIEFLY. THE FIRST ONE IS THE VALUATION. A CERTIFIED TAXABLE ASSESSED VALUATIONS. SO IN THIS FIRST SLIDE I'M SHOWING YOU THE ENTIRE CITY OF OUR CERTIFIED TAX VALUATIONS WHICH INCLUDES THE SIX TIERS. THE TOURS IF YOU RECALL IS THE TAX INCREMENT REINVESTMENT ZONES THAT WE HAVE CREATED WITHIN THE CITY OF KYLE. SO WHEN YOU COMPARE THE 25 TO 24, WE HAD A NET INCREASE OF 4.13% OR $284 MILLION, AND OUR TOTAL TAXABLE ASSESSED VALUATION. AND I OVERLY EMPHASIZE TAXABLE ASSESSED VALUATION, BECAUSE THAT IS THE PORTION OF THE CERTIFIED TAX RULE THAT WE CAN ASSESS THE PROPERTY TAX RATE AGAINST. THERE ARE A WHOLE BUNCH OF OTHER PROPERTIES IN OUR CERTIFIED TAX ROLL THAT ARE NOT TAXABLE. THEY'RE EXEMPT. THEY HAVE WAIVERS. THEY HAVE PROPERTY LOSS EXEMPTIONS, SO ON AND SO FORTH. SO THIS IS THE NET TAXABLE ASSESSED VALUATION FOR THE ENTIRE CITY $284 MILLION. NET INCREASE OF 4% SLIGHTLY OVER 4%. 
          SO WHAT DOES IT LOOK LIKE FOR THIS CITY WHEN YOU CARVE OUT TERCES. THE VALUATIONS INSIDE THE SIX TERCES BECAUSE WE IF YOU REMEMBER THE TERCES ARE BASED ON THE PORTION WE HAVE AGREED TO SHARE IN THE INCREMENT OF THE TAX REVENUES. SOME ARE. NUMBER ONE, FOR EXAMPLE IS 100%, TOURIST NUMBER TWO IS 50%, AND SO ON AND SO FORTH. AND WE'LL SHOW YOU IN A MINUTE. BUT ONCE YOU TAKE THE TERCES OUT, BECAUSE WE CANNOT ASSESS 100% OF CITY'S TAX RATE ONTO THE TERCES THE NET GAIN BETWEEN 25 AND 24 IS 126 MILLION, OR 2%. SO IF YOU LOOK AT, OKAY, WHERE'S THE GROWTH HAPPENING? IF YOU LOOK AT THE TERCES WITHIN THEIR TOURS, IF YOU REMEMBER THE TOTAL FOR EVERYTHING CITY AND TOURS IS 284 MILLION, RIGHT? SO KEEP THAT NUMBER IN MIND WHEN YOU LOOK AT THE SIX TERCES. THE NET INCREASE IS 158 MILLION OR 20% OF THE GROWTH IS HAPPENING WITHIN TOURS. SO NOW WE DRILL DOWN TO WHERE EXACTLY WHICH ONE OF THOSE SIX TOURS IS THE SUPER KING. SO HERE ARE THE SIX TOURS. THE WAY I HAVE IT SHOWN HERE IS FOR EACH TOURS THE SIZE OF THAT TOURS THE ACREAGE, THE PERCENT OF INCREMENT THAT WE HAVE AGREED TO SHARE THAT WE THE CITY RETAINS, 
          [02:45:05]
AND THE OTHER THAT IS RETAINED BY THE TOURS. AND THE EXPIRATION DATE FOR THAT TOURS. AND FINALLY, THE COLUMN WITH THE RED NUMBERS IS THE ACTUAL GROWTH WITHIN THOSE TOURS. SO IF YOU LOOK AT TOURS NUMBER THREE AND FOUR. THAT'S WHERE THE BULK OF THE GROWTH IS. TERSE. THREE IS THE TOLL BROTHERS SAVANNAH RANCH AREA TOURS, FOUR IS THE MERITAGE HOMES LIMESTONE US TOURS NUMBER ONE IS THE VERY FIRST TOURS IN KYLE THAT OPENED UP KYLE'S GROWTH. HOME DEPOT HEB TARGET AREA. THAT'S NOT BAD. 11%. ALMOST. AND THE RECENT MOST RECENT TOURS CREATED WAS. THE LAST ONE THAT YOU SEE ON THIS SLIDE IS THE DOWNTOWN TOURS. IS 8%. SO THAT KIND OF EXPLAINS WHY THE TAX RATE IS IMPACTED. REMEMBER THAT SEESAW. THE VALUATIONS GO UP. TAX RATES COME DOWN. VALUATIONS COME DOWN. TAX RATES GO UP. SO THE VALUATIONS WHEN YOU SUBTRACT THE TERCES JUST FOR THE CORE CITY IS ONLY 2%. THAT HAS AN IMPACT ON THAT SEESAW. THAT IS AN EXTERNAL PRESSURE ON THAT BALANCING. THE NEXT FACTOR THAT IMPACTS THE TAX RATE IS CAPITAL SPENDING. OUR CIP PROGRAM, BECAUSE CIP SPENDING, CAPITAL SPENDING TRANSLATES INTO DEBT, RIGHT? WHATEVER. WE CANNOT PAY WITH CASH OR FEES OR INTEREST INCOME OR IMPACT FEE. THE NET IS BORROWED AND THAT BORROWED AMOUNT IS THE DEBT THAT TRANSLATES INTO DEBT LEVY. SO OUR CIP SPENDING PLAN IS LINE NUMBER FOUR, $1.3 BILLION OVER THE NEXT FIVE YEARS. AND OF THAT. 40% OR 490 MILLION OF THAT, IS TAX SUPPORTED CAPITAL PROJECTS, MEANING THEY WILL BE PAID WITH TAX SUPPORTED REVENUES, WHETHER IT'S IN THE FORM OF PRINCIPAL AND INTEREST OR IT'S IN THE FORM OF CASH CONTRIBUTION OR SOMETHING IN BETWEEN, OR COMBINATION THEREOF. 
          SO THIS IS FACTOR NUMBER THREE. SO IF YOU LOOK AT THAT SAME FIVE YEAR SPENDING PLAN. BECAUSE THAT WAS ONE BIG NUMBER, RIGHT, $490 MILLION FOR TAX SUPPORTED, 781 FOR NONTAXABLE, WHICH IS YOUR UTILITIES. KERR'S. THOSE ARE IN THAT NON-TAX SUPPORTED BUCKET. BUT NOW WHEN YOU SPREAD IT OVER FIVE YEARS SO ACROSS IS YEAR NUMBER ONE THROUGH FIVE. AND THEN YOU HAVE A FIVE YEAR TOTAL. 
          THE TOP BLUE IS THE TAX SUPPORTED CAPITAL SPENDING OVER THE FIVE YEAR WINDOW. THAT SAME $490 MILLION. NOT. IT SHOWS YOU BY YEAR WHAT THE PLAN IS THAT OUR PROJECT MANAGERS AND OUR DEPARTMENTS HAVE COME UP WITH, FOR THOSE TAX SUPPORTED PROJECTS. I'M ONLY GOING TO FOCUS ON TAX SUPPORTED ITEMS BECAUSE WE'RE TALKING ABOUT TAX TAX RATES. NOW, WHAT ARE THOSE TYPES OF TAX SUPPORTED PROJECTS THAT MAKE UP THAT $490 MILLION? BULK OF IT IS THE FIRST SECTION THAT 2020 GENERAL OBLIGATION BONDS FOR PARKS AND THE 2022 VOTER AUTHORIZED BONDS FOR THE ROAD BOND PROGRAM. AND THEN IF YOU LOOK AT OTHER TAX SUPPORT, CIP FUNDING, SIX, LINE SIX THROUGH EIGHT. GENERAL FUND SIPS, THESE ARE SIDEWALKS. OTHER STREETS, INTERSECTION IMPROVEMENTS. THESE ARE THE TYPES OF EXAMPLES I CAN GIVE YOU. THE PROJECTS ARE. THERE ARE 
          [02:50:04]
OVER 100 PROJECTS IN OUR CIP PROGRAM, BUT THE TYPES THAT RELATE TO GENERAL FUND CIP, THEY ARE SIDEWALKS, OTHER ROADS OTHER THAN ROAD BOND PROGRAM, INTERSECTION IMPROVEMENTS, ROUNDABOUTS, LIGHTING IMPROVEMENTS, THINGS OF THAT NATURE. NUMBER SEVEN IS PARK DEVELOPMENT SIPS. THESE ARE RELATED TO AND DEDICATED TO PARK IMPROVEMENTS. AND THE THIRD CATEGORY IS THE TRANSPORTATION CIP. THE CITY PLANS TO. WE TALKED ABOUT IT EARLIER WHEN WE WERE TALKING ABOUT AKIN GUMP. THAT CITY INTENDS TO APPLY FOR A GRANT, TRANSPORTATION GRANT THAT REQUIRES A MATCH, AND THAT'S THE MATCH FUNDING THAT THE CITY IS PLANNING TO HAVE. SO THAT'S THE $490 MILLION OVER FIVE YEARS IN THE DIFFERENT TYPES OF TAX SUPPORTED SIPS. SO AS OF TODAY, THE CITY OWES. $262,890,000 IN DIFFERENT BONDS FOR EVERYTHING. I WON'T GO THROUGH EACH ONE OF THEM. BUT JUST TO GIVE YOU AN IDEA, AT THE TAIL END OF EACH BOND, THERE IS A YEAR DESIGNATION THAT JUST SIMPLY SHOWS WHEN THOSE BONDS WERE ISSUED OR WHEN THOSE BONDS WERE REFUNDED. SO 262,890,000 IS WHAT WE OWE AS OF TODAY FOR EVERYTHING TAX SUPPORTED AND NON-TAX SUPPORTED. SO THIS TAKES THE SAME $262,890,000 IN DEBT, BREAKS IT UP BY WHAT'S GOING TO AFFECT THE TAX RATE AND WHAT IS NOT GOING TO AFFECT THE TAX RATE. SO 59% OF THAT DEBT IS TAX SUPPORTED. SO IT NEEDS TO BE IN THE CALCULATIONS OF THE ANNUAL TAX RATE. SAME DEBT. WITH THE INTEREST. IF WE HOLD THESE BONDS UP TO MATURITY, WE WILL PAY ANOTHER $168 MILLION IN INTEREST. SO FOR TAX RATE, WE HAVE TO NARROW DOWN TO WHAT IS THE TAX LEVY FOR NEXT YEAR THAT HAS TO BE RECOUPED THROUGH THE INS TAX RATE. RIGHT. SO THIS TABLE SHOWS YOU OUR TOTAL DEBT SERVICE FOR NEXT YEAR IS 26,771,001 68. THAT'S THE LAST LINE IN RED OF THAT WE MUST RECOVER TO THROUGH TAX RATES. THE FIRST LINE 18,000,009 76, 92 OR 71% ROUGHLY MUST BE RECOVERED THROUGH THE INS TAX RATE. AND THE LAST FACTOR THAT I TALKED ABOUT IS OTHER SOURCES OF REVENUE THAT AFFECTS THE TAX RATE. SO IN KYLE, WE HAVE A PORTION OF OUR SALES TAX DEDICATED TOWARDS OFFSETTING THE PROPERTY TAX RATE. SO THE SALES TAX IS 8.25% IN KYLE. AND THE WAY IT'S SHARED IS THE STATE RECEIVES SIX AND A QUARTER. THE CITY RECEIVES 1.5%, AND HAYS COUNTY RECEIVES THE REMAINING 4.5, OR HALF OF 1%. IN 1989, THE VOTERS IN KYLE VOTED TO DEDICAT. 
          0.5% OF THE CITY'S 1.5 TOWARDS PROPERTY TAX RATE REDUCTION. SO EVERY YEAR WE SET ASIDE 0.5% OR THIRD OF OUR SALES TAX INCOME THAT WE RECEIVE TO OFFSET THE TAX RATE. PROPERTY TAX RATE FOR 2025 NEXT YEAR. THE TAX RATES WE ARE INCLUDING $6.3 MILLION IN SALES TAX REVENUE TO OFFSET OR 
          [02:55:07]
REDUCE THE TAX RATE. HOW MUCH DOES IT REDUCE THE TAX RATE? IT REDUCES IT BY 9.857. THAT'S A HUGE NUMBER, ALMOST $0.10 FROM SALES TAX. IF WE DID NOT HAVE THIS FEATURE BUILT IN, OUR TAX RATES WOULD HAVE BEEN $0.10 HIGHER. SO NOW WE'RE GOING TO GET DOWN TO THE REAL TAX RATES THAT WE ARE BUILDING UP TO. SO THE TWO TAX RATE COMPONENTS THAT WE TALKED ABOUT EARLIER, MAINTENANCE AND OPERATIONS, TAX RATE AND INTEREST IN SINKING TAX RATE. AND THEN WE TALKED ABOUT THE THREE TAX RATES THAT WE LOOK AT EVERY YEAR AND COMPARE. SO THE FIRST COLUMN I ADDED THE CURRENT TAX RATE JUST TO GIVE YOU A COMPARISON AS TO WHERE WE ARE STARTING WITH. SO CURRENT TAX RATE FOR THIS YEAR THAT THE CITY COUNCIL HAS ADOPTED IS 46.93 PER $100. THE NO NEW REVENUE TAX RATE FOR NEXT YEAR IS $48.85. AND THE REASON YOU SEE THOSE THOSE NEXT TWO COLUMNS IN SIX PLACES, BECAUSE OUR CERTIFIED TAX RATE CALCULATIONS ARE CURRENTLY COMPLETED BY THE HAYS COUNTY TAX ASSESSOR, COLLECTORS OFFICE, AND THEY GO UP TO SIX PLACES. HOWEVER, WHEN THE CITY COUNCIL ADOPTS THE TAX RATE, CITY OF KYLE ONLY USES FOUR PLACES BECAUSE IT'S EASIER FOR OUR RATEPAYERS, OUR PROPERTY OWNERS, TO UNDERSTAND THEY CAN CALCULATE THEIR TAX BILLS EASILY IF IT'S FOUR PLACES RATHER THAN SIX PLACES. SOME OF THE CALCULATORS DON'T GO THAT FAR THAT PEOPLE HAVE AT HOMES. SO ANYWAY, THE NO NEW REVENUE TAX RATE FOR NEXT YEAR IS 48.85. THE VOTER APPROVAL TAX RATE IS 5957, AND THE PROPOSED TAX RATE THAT THE CITY MANAGER'S BUDGET IS, IS BUILT AROUND IS 5957. THE LAST TWO LINES SIMPLY COMPARES THE TAX RATES. THE PROPOSED TAX RATES TO EACH ONE OF THOSE COLUMNS. SO FOR EXAMPLE, THE FIRST COLUMN. 1264, THE PROPOSED TAX RATE IS 1264 HIGHER THAN THE CURRENT TAX RATE. THAT'S THE DIFFERENCE BETWEEN 4693. THE CURRENT ADOPTED TAX RATE AND THE PROPOSED TAX RATE OF 59 57, 12.6 $0.04, OR 26.9%. SAME THING WITH NO NEW REVENUE TAX RATE. THE PROPOSED TAX RATE IS 1072 HIGHER. THE PROPOSED IS HIGHER THAN THE. NO NEW REVENUE. AND IF YOU NOTICE, THE PROPOSED TAX RATE IS AT THE SAME LEVEL AS THE VOTER APPROVAL TAX RATE, WE WANTED TO MAKE SURE THAT IT DID NOT EXCEED THAT IT WOULD NOT TRIGGER THE ELECTION REQUIREMENT. THE INS RATE IS ALL THE SAME ACROSS BECAUSE YOU HAVE TO GET FROM YOUR INS OR COVER ENOUGH MONEY TAX REVENUE TO PAY YOUR PRINCIPAL AND INTEREST THAT'S DUE NEXT YEAR. SO WE DON'T HAVE A CHOICE. THE ONLY FLEXIBILITY WE HAVE IS THE RATE. 
          SO IF YOU NOTICE, THE NO RATE IS THE ONE THAT'S CHANGING BETWEEN THOSE. SO THE TAKEAWAY FROM THIS SLIDE IS THE PROPOSED TAX RATE FOR CITY OF KYLE FOR NEXT YEAR IS 5957. IT DOES NOT EXCEED THE VOTER APPROVAL TAX RATE. SO IT DOES NOT REQUIRE AN ELECTION. BUT IT IS HIGHER THAN THE NO NEW REVENUE TAX RATE OR THE STATE'S TAX CODE THRESHOLD. SO HOW DOES THAT IMPACT OUR AVERAGE HOME 
          [03:00:04]
VALUE AND THE TAX BILL IMPACT FOR AN AVERAGE VALUED HOME IN KYLE? SO ON THIS SLIDE I HAVE THE 2025 AVERAGE VALUE AND THE 2024 AVERAGE VALUE. YOU WILL NOTICE THAT THE VALUE, THE AVERAGE VALUE FOR 25 HAS DECREASED AS COMPARED TO 2024. SO IF YOU LOOK BACK OR THINK BACK TO THE SEESAW, WE ARE HAVING A REDUCED VALUATION OVER TIME. AND IT'S VERY CLEAR HERE. 
          AND THE AVERAGE VALUE OF A HOME, WE HAVE LOST $9,305. SO USING THE TAX RATE, THE PROPOSED TAX RATE 5957 AS COMPARED TO THE CURRENT APPROVED TAX RATE, THE TAX LEVY FOR NEXT YEAR ON AN AVERAGE HOME THAT IS VALUED AT $315,422, IS. $1,878.97. THIS IS JUST THE CITY OF KYLE'S PORTION. 
          WE'RE NOT TALKING ABOUT ANY OTHER JURISDICTION ON THAT TAX BILL, SUCH AS THE SCHOOL DISTRICT, OR THE COUNTY, OR THE AUSTIN COMMUNITY COLLEGE, OR THE GROUNDWATER DISTRICT, OR THE CONSERVATION DISTRICT, OR ISDS. THEN I HAVE SHOWN YOU THE HOMESTEAD CITY OF KYLE PROVIDES $40,000 IN HOMESTEAD EXEMPTION. THE VALUE OF THAT HOMESTEAD EXEMPTION AT THE RATE THAT WE'RE PROPOSING, IT REDUCES THEIR TAX BILL. SO THE NET TAX BILL USING THE 56, 59, 57 TAX RATE FOR NEXT YEAR, THE NET TAX BILL FOR AN AVERAGE VALUED HOME IN KYLE IS GOING TO BE $1,640.69 AS COMPARED TO FOR 24. IT IS $304.47 HIGHER. SO THAT'S THE AVERAGE VALUED HOME TAX BILL IMPACT. HERE ARE SOME KEY DATES TO KEEP IN MIND. CITY COUNCIL MEETING DATES FOR PUBLIC HEARINGS AND ADOPTION OF PROPERTY TAX RATES SEPTEMBER 2ND IS OUR FIRST PUBLIC HEARING AND THE FIRST READING OF THE ADOPTION ORDINANCE. SEPTEMBER 16TH IS OUR SECOND PUBLIC HEARING AND THE SECOND READING OF ADOPTION TAX ADOPTION ORDINANCE. SO BACK TO THE RESOLUTION WE HAVE ON HAND FOR TAX YEAR 25. LINE NUMBER TWO, THE NO REVENUE TAX RATE OF 48.85 IS LESS THAN THE PROPOSED TAX RATE. RIGHT. SO THE PROPOSED TAX RATE IS HIGHER THAN THE NO NEW REVENUE TAX RATE LINE ONE COMPARED TO LINE TWO. THE TAX CODE NOW REQUIRES THE CITY COUNCIL TO VOTE ON THIS RESOLUTION THAT YOU ARE WILLING TO CONSIDER A PROPOSAL ON A FUTURE COUNCIL MEETING DATE, WHICH IS SEPTEMBER 2ND. YOU WOULD CONSIDER A TAX RATE INCREASE BECAUSE IT'S HIGHER THAN THE NEW REVENUE TAX RATE. A RESOLUTION IS NOT REQUIRED. SO THAT'S WHY WE'RE ASKING YOU AS THE GOVERNING BODY TO VOTE ON THIS RESOLUTION. SO THE BASIS FOR OUR RECOMMENDATION ON APRIL 1ST, COUNCIL GAVE THE CITY MANAGER DIRECTION TO MAINTAIN THE TAX RATE AT 6171 PER $100. BASED ON THE ACTUAL CERTIFIED VALUATIONS WE RECEIVED. THE TAX RATE IS NOW AT 5957, WHICH IS 2.1 $0.04 LESS THAN WHAT WAS ESTIMATED BACK IN APRIL. BASED ON THE ABOVE, STAFF RECOMMENDS APPROVAL OF RESOLUTION AND AS WE ALWAYS DO, WE GIVE YOU OPTIONS. 
          SO THE OPTIONS FOR CITY COUNCIL ARE APPROVE THE RESOLUTION. AND IF YOU DO, WE REQUEST THAT IT BE A ROLL CALL VOTE. YOU CAN DENY THE APPROVAL OR SOMETHING ELSE WITH THAT. THAT CONCLUDES MY PRESENTATION. MAYOR AND COUNCIL. ALL RIGHT. THANK YOU PERVEZ. THAT WAS VERY GOOD TEACHING. SO APPRECIATE THAT A LOT. I HAVE A COUPLE THINGS I WANT TO ADD TO WHAT HE JUST SAID. BUT BEFORE I 
          [03:05:03]
DID, IF THERE'S ANYBODY WHO WANTS TO GO FIRST AND HAS ANYTHING TO SAY JUST YET. 
          BECAUSE WE'RE JUST ON SLIDE NUMBER 21, BECAUSE AGAIN, IT'S FOR ME, IT'S TAXES FOR DUMMIES HERE. SO IF I HAVE A RESIDENT THAT'S GOING TO QUESTION, LET'S SAY THE TAX RATE FOR THE AVERAGE HOME WAS 324 LAST YEAR. AND THEN THIS YEAR IT WENT DOWN. AND THEN THE TAX RATE WENT UP. AND LAST YEAR WAS AT 46. THIS YEAR IS GOING TO BE 59. HOW WHAT CAN I EXPLAIN A LITTLE BIT MORE ON WHEN THEIR AVERAGE BILL IS THE AVERAGE HOME VALUE IS LOWER THAN LAST YEAR'S AND WHY THERE'S AN INCREASE ON THAT ON THAT LEVERAGE THEIR 2022 79% CHANGE. SO THE FIRST THING I WOULD SHOW THAT PERSON THAT THE TAX RATE IS CHANGING, EVEN THOUGH THE VALUE HAS COME DOWN, THE TAX RATE HAS GONE UP BY 12.6 $0.04. RIGHT, RIGHT. AND AS WE BUILT ON THE BUILDING BLOCKS EARLIER, THE DEBT HAS GONE UP. SO I INS PORTION OF THE TAX RATE HAS GONE UP OKAY. RIGHT. YEAH. SO YOU CAN'T REALLY LOOK AT THE HOME VALUE. YOU HAVE TO LOOK AT THE ACTUAL DEBT THAT THE PIECES, THE PIECES OF THE COST FACTORS THAT GO INTO THE TAX RATE CALCULATIONS. SO CAN I, CAN I GIVE A GO TO THAT AS WELL. BECAUSE PEOPLE ARE GOING TO SAY, HEY, HOW COME MY VALUE OF MY HOUSE WENT DOWN AND BUT THE TAXES ARE GOING UP. THE ANSWER IS BECAUSE OF THE 2022 ROAD BOND. OKAY. WE ASKED THE VOTERS TO GO UP TO $0.60 AND WE PUT A, YOU KNOW, YOU SEE HOW MUCH DEBT WE HAVE. IT'S 200 MILLION. BUT HOW MUCH ARE WE GOING TO ISSUE THIS YEAR? 120, 150, SOMETHING LIKE THAT. 130 I THINK. YEAH, OUR DEBT IS ABOUT TO DOUBLE. SO AND THAT'S BECAUSE WE ASKED THE VOTERS IF THEY WANTED US TO DO THAT. AND WHICH IS, YOU KNOW, WHAT MR. MCDONALD WAS SAYING EARLIER ABOUT WE ANSWER TO THE VOTERS. WELL, HE WAS SAYING IT LIKE WE DON'T. BUT THE TRUTH IS, WE ASKED THE VOTERS WHAT THEY CARED ABOUT THE MOST. AND THEY SAID FIXING OUR ROADS. AND WE PUT FORWARD A PROPOSITION AND WE SAID IT'S GOING TO COST UP TO $0.59, AND WHICH IS A BIG INCREASE. DO YOU WANT US TO DO THAT AND FIX YOUR ROADS? AND THEY OVERWHELMINGLY 65% I MEAN, YOU KNOW, IT WAS NOT CLOSE. SAID YES, THAT'S WHAT THEY WANT. AND SO WE'VE BEEN WORKING THROUGH IT, BUT IT'S NOT AN IMMEDIATE INCREASE. THAT QUESTION IN 2022 IS COMING DUE NOW WHEN IT'S TIME TO ISSUE THE DEBT. YOU KNOW, WE DID ALL THIS WORK TO GET HERE AND THAT'S WHAT HAPPENED. AND SO THAT'S THAT IS THE ANSWER. IN FACT OUR LIKE IF YOU LOOK AT THE O&M RATE IT'S GOING WAY DOWN. SO WE'RE NOT IT'S NOT IT'S NOT WE'RE NOT THE TAXES AREN'T GOING UP SO THAT WE CAN GIVE EVERYONE RAISES. WE CAN HIRE MORE, YOU KNOW, STAFF MEMBERS AND YOU KNOW, THOSE KIND OF THINGS. THAT PART'S GOING DOWN. THAT'S A 3.5% INCREASE CAPPED BY THE GOVERNOR OR BY THE GOVERNMENT, THE STATE GOVERNMENT. AND WE CAN'T GO ABOVE THAT WITHOUT A TAX RATE ELECTION, WHICH IS WHAT AUSTIN'S TRYING TO DO. AND WE'RE SAYING, NO, WE'RE GOING TO STAY WITHIN THE VOTER APPROVED RATE BECAUSE WE'RE LOOKING AT $0.61 AT ONE TIME. YES. THAT'S SO, SO BUT A COUPLE OTHER THINGS THAT WERE SAID THAT YOU HAVE TO YOU HAVE TO PAY ATTENTION TO WITH THESE NUMBERS BECAUSE YES, IT'S BEING BROKEN DOWN IN A CERTAIN WAY HERE. BUT IF YOU WANT TO SAY, FOR EXAMPLE, COMPARE US TO BUTA, BUTA HAS A TAX RATE THAT'S LIKE MORE THAN $0.10 BELOW OURS. SO YOU THINK OH BUTA IS MORE AFFORDABLE BECAUSE THEIR TAX RATE IS SO MUCH LOWER. NO, NO, NO, NOT TO THE AVERAGE HOMEOWNER. IT'S NOT NUMBER ONE. WE THAT 315,000 AVERAGE HOME VALUE FOR THIS YEAR. THE AVERAGE HOMEOWNER IN KYLE GETS A $40,000 HOMESTEAD EXEMPTION REGARDLESS OF YOUR AGE. SO IF YOU OWN A HOME IN KYLE AND LIVE HERE, IT'S YOU DROP $40,000 OFF OF THAT, WHICH MEANS WE'RE ONLY TAXING ON 285,000 OR WHATEVER THAT NUMBER IS. I DON'T THINK I DID THAT QUITE RIGHT, BUT 275,000. SO THAT'S IN THE AVERAGE VALUE IN HOME VALUE IN BUDA IS 100,000 HIGHER THAN OURS. SO THEY'RE AT 415,000. AND THEY DO NOT HAVE A HOMESTEAD EXEMPTION FOR THE AVERAGE PERSON. THEY GIVE IT TO 65 AND OLDER. WELL, FOR US, IF YOU'RE 65 AND OLDER YOU GET AN ADDITIONAL $10,000. SO IF YOU'RE OVER 65 OR DISABLED OR VETERAN, THEN YOU'RE ONLY BEING TAXED ON $275,000, WHEREAS THE AVERAGE RESIDENT. AND SO WHEN YOU COMBINED THE VALUE THIS, REMEMBER THAT SEE SAW THAT HE SHOWED WHEN YOU MULTIPLY THE AVERAGE TAX VALUE IN BUDA AND TAKE AWAY ALL THEIR DEDUCTIONS 
          [03:10:04]
TIMES THEIR RATE, IT'S GOING TO GIVE YOU A NUMBER THAT IS HIGHER THAN THE CITY OF KYLE'S. WHEN YOU DO THAT, WHAT THE AVERAGE PERSON PAYS EVEN THOUGH THEIR RATE IS LOWER. SO THAT'S THAT'S ONE THING THAT'S REALLY IMPORTANT TO MAKE CLEAR IS HOW MUCH THE AVERAGE PERSON IS PAYING. SO THAT NUMBER ON THE FAR RIGHT IS VERY IMPORTANT. BUT BUT IS FOR EXAMPLE, IS 100,000 MORE. AND THEN THE SECOND THING I WANTED TO SAY WAS THERE WAS PERVEZ SAID THAT THAT, THAT THAT, YOU KNOW, WE TAKE A LOT OF MONEY OUT OF THE GENERAL FUND AND PUT THEM INTO THESE VARIOUS TOURS. RIGHT. AND THE ARGUMENT WAS THAT THAT PUTS PRESSURE ON THE TAX RATE TO GO UP. AND THAT WOULD BE TRUE IF WE DIDN'T SET THEM UP THE WAY WE DID. WE DO NOT HAVE SET ASIDE TOURS WHERE THE CITY OF KYLE JUST PUTS MONEY AWAY. WHAT WE HAVE ARE TOURS WHERE THE CITY OF KYLE AND HAYS COUNTY PUTS MONEY AWAY, AND THEN THAT COLLECTIVE POOL OF MONEY PAYS FOR INFRASTRUCTURE PROJECTS LIKE THE ONE THAT WE JUST VOTED ON WHERE WE'RE GOING TO VOTE ON. BUT, YOU KNOW, WE VOTE, TOLD STAFF TO GO FORWARD. THAT WAS HOW MUCH? $16 MILLION PROJECT. ALL RIGHT. SO IF WE DON'T HAVE THAT TERS THEN WE PAY FOR THAT OUT OF OUR GENERAL FUND 100% FROM THE CITY OF KYLE, WHICH HAS UPWARD PRESSURE ON OUR TAX RATE. NOT YOU KNOW, SO BUT THE FACT THAT THE TOURS IS PAYING FOR IT MEANS THAT HALF OF THOSE DOLLARS ARE COMING FROM THE COUNTY AS WELL. SO THE AMOUNT OF MONEY THAT'S HAVING TO BE SPENT TO PAY FOR THAT ROAD OUT OF THE CITY'S FUNDS, THAT STARTS IN THE GENERAL FUND, THEN GOES TO THE TOURS, IT'S IT GETS REDUCED BY HALF. SO IT'S ACTUALLY BECAUSE OF THE COUNTY'S CONTRIBUTION TO THESE PROJECTS, THE ROUNDABOUTS, PROJECTS, ALL OF THAT. WE'RE ACTUALLY BRINGING IN MONEY FROM THE COUNTY TO PAY FOR THAT. SO IF YOU WIPE THE TEARS AWAY AND THEN FUNDED THOSE PROJECTS WITH GENERAL FUND, THAT WOULD ACTUALLY MAKE THE TAX RATE GO UP HIGHER THAN THE WAY THAT WE'RE CURRENTLY DOING IT, BECAUSE OF THE WAY THOSE PROJECTS ARE PUT TOGETHER. AND IS THAT IS THAT WOULD THAT BE ACCURATE? IF YOU ASSUME THE DOLLARS. YEAH. IF YOU PLUG IN THE COUNTY'S PORTION, YES. YOU'RE CORRECT. SO YOU HAVE TO CONSIDER WHAT WE'RE DOING WITH THOSE TOURS IS IN ORDER TO TELL IT THE STORY ACCURATELY, THAT MONEY DOES NOT GO NOWHERE. 
          IT REPLACES PROJECTS THAT WE WOULD OTHERWISE PAY FOR OUT OF OUR GENERAL FUND. WE CAN CONTROL THE GENERAL FUND A LOT BETTER THAT WAY. CORRECT. SO JUST I WANT TO PUT ALL THOSE THINGS INTO CONSIDERATION. AND THEN ONE OTHER THING TO SAY IS IT IS A BIG JUMP HERE. BUT THIS THIS THIS YEAR AND LAST YEAR WE, WE VOTED TO DEFEASE DEBT. AND WHAT THAT MEANS IS WE DON'T TECHNICALLY HAVE TO GO UP TO THE $0.59 NOW. BUT IN ORDER TO FULFILL THE VOTERS, THE APPROVED BOND PROGRAM PROJECTS, IT WILL EVENTUALLY GO UP. BUT BECAUSE WE'RE GOING AHEAD AND GOING UP TO THE $0.59 THAT THE VOTERS APPROVED BY PAYING DOWN DEBT EARLY, IT'S GOING TO ALLOW FOR US TO ACTUALLY NOT HAVE TO EXCEED THE $0.59, WHICH I DON'T THINK WE WOULD HAVE HAD TO DO, BUT FOR THE FACT THAT THE HOME VALUES ARE GOING DOWN. SO IT'S KIND OF A MULTIPLE LEVERAGE POINTS ARE IMPACTING OUR TAX RATE AT THE SAME TIME. ONE IS WE'RE ISSUING A LOT OF NEW DEBT THAT THE VOTERS APPROVED. TWO IS WE'RE DEFEATING DEBT AND THEN THREE IS HOME VALUES CAME DOWN. 
          SO YOU PUT ALL THOSE THREE THINGS TOGETHER AND THAT'S WHY THE RATE HAS COME UP. BUT FRANKLY, I'M ACTUALLY PRETTY IMPRESSED WITH THE, THE BUDGET THAT WAS PROPOSED AND THE WAY THAT YOU WERE ABLE TO KEEP IT BELOW, EVEN WITH ALL THE DIFFERENT PROJECTS AND DEBT THAT WE'RE ISSUING. SO I JUST WANTED TO SAY THAT, BUT I DID WANT TO PUT ALL OF THAT OUT THERE SO THAT WE GOT THE FULL PICTURE. YEAH, BECAUSE IT IS THE VOTER APPROVED AMOUNT THAT WE TOLD THEM IN 2022. AND WE'RE KEEPING IT TO THAT RIGHT NOW, ESPECIALLY WITH ALL THE PROJECTS AND ALL THE DEBT WE HAVE. WE'RE STILL KEEPING IT RIGHT AT MAYBE A LITTLE BIT UNDER. THAT'S RIGHT. 
          OKAY. AND PEREZ, IF I MAY, WE COULD HAVE STILL GONE UP ANOTHER 3%, CORRECT THAT THE STATE ALLOWS US OVER THE 59 BECAUSE THE 59 IS THE VOTER APPROVED, BUT WE STILL HAD THE WIGGLE ROOM OF 3% IF WE CHOSE TO DO THAT AS A CITY. CORRECT. BUT WE DECIDED TO KEEP IT AT THE VOTER APPROVED. AM I CORRECT ON THAT? NO, SIR. THE 5957 INCLUDES THE THREE AND A HALF THAT THE STATE ALLOWS US. OKAY, I WAS JUST MAKING SURE I DIDN'T KNOW IF THAT WAS BECAUSE I KNOW THAT THERE WAS TALK ABOUT 61 POINT SOMETHING. SO I JUST WANTED TO MAKE SURE THAT WE WERE STAYING AT THE THRESHOLD THAT WE'RE ALLOWED TO AND NOT GOING OVER, EVEN IF WE COULD. WE PROMISED THE VOTERS 59%. I'M JUST GLAD WE STAYED THERE. WE COULD HAVE HAD A TAX RATE OF APPROXIMATELY $0.62. SO, I MEAN, I THINK THAT'S THE POINT THAT WE'RE MAKING ON ON THE DEBT AND HOW THE DEBT COULD HAVE BEEN STRUCTURED. AND WE WORKED VERY CAREFULLY WITH OUR FINANCIAL 
          [03:15:04]
ADVISORS TO TRY TO GET US UNDER THE $0.60 THAT WE PROMISED THE VOTERS. IT COULD HAVE BEEN HIGHER. THAT'S WOULDN'T HAVE BEEN ON THE NO SIDE WOULD HAVE BEEN ON THE DEBT SIDE. RIGHT. 
          CAN I JUST JUMP IN? YES, SIR. YES. YEAH. SLIDE 21. I THINK, MICHAEL, ONE OF THE THINGS I WANTED TO CLEAR UP IS LIKE, WE ARE LIKE IN AN ECONOMIC SLOWDOWN. SO YOU COULD SEE WHY THE HOUSING MARKET WOULD FEEL THE PRESSURE TO, TO SORT OF COME DOWN. AND RIGHT NOW IT'S MORE OF A, A BUYER'S MARKET. SO THESE THINGS KIND OF CHANGE AROUND A COUPLE OF YEARS AGO IT WAS MORE OF A SELLER'S MARKET. SO THIS ALLOWS MORE PEOPLE TO BUY A HOME, YOU KNOW, AT A LOWER, LOWER PRICE. ONLY ISSUE IS, YOU KNOW, THEY HAVE TO GET WAGES UP TO. BUT I GUESS THE ONLY CAUTION IS, YOU KNOW, TO A LOT OF HOMEOWNERS WHO DID BUY AT A VERY HIGH PRICE, THEY WOULD START TO FEEL WORRIED, RIGHT, WITH THE WITH THE MARKET VALUES OR WITH THE HOME VALUES DROPPING QUITE A BIT BECAUSE THEN THEY COULD GO BACKWARDS IN THEIR LOANS. BUT THESE ARE THINGS THAT, YOU KNOW, THERE THERE REALLY RELATED TO THE ECONOMY, TO THE LENDING TO DEVELOPMENTS. SO I GUESS WHEN WE APPROVE DEVELOPMENTS, WE SORT OF CREATE A SUPPLY. RIGHT. AND THAT THAT ALSO AFFECTS SOME OF THE SOME OF THE HOUSES THAT ARE ON THE MARKET RIGHT NOW, BECAUSE NOW YOU HAVE MORE COMPETITION TO BUYERS FOR BUYERS. SO WOULDN'T THAT BE A LOT OF WHAT'S GOING ON WITH THEM? HOME VALUES. SURE. I THINK IN ANY CITY, IN ANY CITY, ALL ELSE EQUAL. RIGHT. IF YOU HAD MORE SUPPLY THEN THEN THAT WOULD DRIVE DOWN THE PRICE. BUT WE'RE CONTINUING TO SEE THE AREA GROW. IT'S JUST AT A SLOWER RATE THAN WHAT IT'S BEEN IN THE PAST. AND THIS IS CYCLICAL HOUSING PRICES. YOU KNOW, IF YOU'VE SEEN HOUSING OVER THE LAST TEN, 20 YEARS, YOU GO THROUGH SOME MOMENTS WHERE IT DIPS A LITTLE BIT AND OTHERS WHERE IT GOES UP LONG TERM. THE HOUSING MARKET IS STILL VERY STRONG HERE IN KYLE AND THE AUSTIN METRO AREA. SO WE FEEL WE FEEL GOOD ABOUT THAT. BUT THIS YEAR IT IS DOWN. LAST YEAR IT WAS A DIFFERENT STORY RIGHT. TWO YEARS BEFORE THAT IT WAS DIFFERENT. SO IT'S JUST IT'S ONE ISOLATED LOOK. AND THESE ARE THESE ARE SOMEWHAT FICTITIOUS NUMBERS. IT'S AN AVERAGE NUMBER TO MAKE IT AN AVERAGE RATE AND A COST. BUT NO ONE'S GOING TO BE EXACTLY ON THESE PARTICULAR POINTS. IT'S JUST AN AVERAGE CALCULATION. YEAH I REMEMBER A FEW YEARS AGO PEOPLE WERE THEIR HOMES WERE JUST BIDDING PRICE SO HIGH AND IT WAS HARD TO PROTEST IT. BUT NOW IT'S KIND OF CORRECTING ITSELF WHERE YOU'RE GETTING MORE OF LIKE A, LIKE A LEVEL KIND OF SHIFT IN SOME OF THE HOUSING MARKET. SO JUST MY THOUGHTS ON THAT PART. ALL RIGHT. ANY OTHER DISCUSSION? THIS DOES NOT REQUIRE SPECIAL MOTION THAT COMES LATER. THAT WILL BE ON SEPTEMBER 2ND. WHAT WE NEED NOW IS IF COUNCIL WANTS TO APPROVE THIS, THAT WE NEED A ROLL CALL VOTE. MAYOR. ALL RIGHT. MOTION TO APPROVE. AGENDA ITEM 29. SECOND MOTION BY THE MAYOR. SECONDED BY COUNCIL MEMBER HARRIS THAT WE APPROVE. AGENDA ITEM 29. IS THERE A DISCUSSION ON THE MOTION ROLL CALL VOTE? HI, SIR. YES, TOBIAS. YES, MCKINNEY. YES. RIZZO. YES. MITCHELL. YES. HARRIS. YES. 
          ZUNIGA. YES. MOTION CARRIES 7 TO 0. THANK YOU, THANK YOU. ALL RIGHT. NEXT UP IS AGENDA ITEM 
          [30) Consider approval of an agreement with Urban Alchemy Collective, LLC for design for Phase 1 of the adopted Kyle Sportsplex Master Plan (outdoor), and programming and preliminary design services for the proposed indoor recreation center in an amount not to exceed $2,419,700.]
NUMBER 30. CONSIDER APPROVAL OF AN AGREEMENT WITH URBAN ALCHEMY COLLECTIVE, LLC FOR DESIGN FOR PHASE ONE OF THE ADOPTED CAL SPORTSPLEX MASTER PLAN AND PROGRAMING AND PRELIMINARY DESIGN SERVICES FOR THE PROPOSED INDOOR RECREATION CENTER, IN THE AMOUNT NOT TO EXCEED $2,419,000 OF AND $419,700. MR. SLATE, I'M GOING TO TURN IT OVER TO MARK MALDONADO WITH URBAN ALCHEMY COLLECTIVE FOR THE FIRST PART OF THE PRESENTATION. THANK YOU. ROSIE. MAYOR, MAYOR PRO TEM COUNCIL, GOOD EVENING. IT'S A REALLY EXCITING NIGHT. AS WE CONTINUE OUR JOURNEY FROM THE TRANSFORMING THE SPORTS COMPLEX FROM A VISION INTO A REALITY, JUST TO GIVE A LITTLE BIT OF PROJECT BACKGROUND. SO NOVEMBER 3RD, 2020, KYLE VOTERS APPROVED THE $7 MILLION BOND FOR THE SPORTSPLEX DEVELOPMENT. SAME YEAR, WE HAD THAT INTERLOCAL AGREEMENT WITH HAYS COUNTY FOR ANOTHER $7 MILLION OF CONTRIBUTIONS. THEN, IN EARLY JUNE OF 2024, WE KICKED OFF THE FEASIBILITY STUDY, WHICH ENGAGED THE COMMUNITY AT THE SAME TIME AS WE DID THE OVERALL PROS 
          [03:20:03]
MASTER PLAN, THE PARKS, RECREATION AND OPEN SPACE MASTER PLAN REALLY KIND OF IDENTIFYING THOSE GAPS, THOSE OPPORTUNITIES OF HOW WE COULD REALLY ELEVATE THE PARKS AND RECREATION SYSTEM, BUT ALSO REALLY LISTENING TO THE COMMUNITY AND IN REGARDS TO WHAT ARE THEIR TOP NEEDS AND DESIRES. 
          AND THEN JUST LAST MONTH, WE PRESENTED THE SPORTSPLEX MASTER PLAN, WHICH GOT ADOPTED. AND HERE WE ARE TONIGHT TO PRESENT THE PHASE ONE SCOPE OF THAT IMPLEMENTATION PROCESS. OUR SCOPE HAS BEEN BROKEN UP INTO TWO MAJOR PARTS. PART ONE, WHICH INCLUDES ALL THE EXTERIOR COMPONENTS OF THE SPORTSPLEX MASTER PLAN, WHICH ARE APPROXIMATELY 40 ACRES, AND THEN PART TWO, WHICH REALLY FOCUSES ON THE INDOOR RECREATION CENTER PIECE, WHICH IS MORE OF THE MASTER PLANNING EFFORT THAT WE NEED TO CONDUCT TO LEARN A LITTLE BIT MORE OF WHAT THE PROGRAM, WHAT THE RECREATION ELEMENTS AND WHAT THAT THAT INTERIOR REALLY LOOKS LIKE THAT COULD CATER TO THE COMMUNITY. SO SPENDING A LITTLE BIT MORE TIME ON PART TWO, WE HAVE FOUR MAJOR MILESTONES. SO THE FIRST PHASE IS VISIONING AND DISCOVERY. SO THIS IS WHERE WE'RE DOING OUR DUE DILIGENCE. WE'RE COLLECTING INFORMATION FROM THE TASK FORCE WITH DIFFERENT PARTNERSHIPS OR POTENTIAL PARTNERSHIPS STAKEHOLDERS. AND WE'RE BRINGING THEM TO THE TABLE TO DISCUSS, YOU KNOW, WHAT ARE WHAT IS THE VISION, WHAT ARE THE DESIRES, WHAT ARE THOSE OPPORTUNITIES FOR THOSE PARTNERSHIPS? BUT ALSO IN REGARDS TO PROGRAMING ARCHITECTURAL ELEMENTS AND LAND USES. PHASE TWO HERE WE LOOK AT MORE CONCEPTUAL DESIGN ALTERNATIVES WHERE WE HAVE THREE DIFFERENT ALTERNATIVES LOOKING FROM DIFFERENT LENSES. ONE MIGHT BE A SPECIFIC USER GROUP, ONE MIGHT BE STRICTLY JUST CATERING FOR THE COMMUNITY, AND THE OTHER ONE MIGHT BE A HYBRID OF POTENTIAL STAKEHOLDER GROUPS OR PARTNERSHIPS TO REALLY MAXIMIZE THOSE. THOSE USES OF THE SPACE. 
          THROUGHOUT THIS WHOLE PROCESS, THE TASK FORCE AND THE STAKEHOLDER GROUPS WOULD WOULD HAVE FEEDBACK AND BE ENGAGED IN A PRESENTATION AND WORKSHOP OF THESE THESE CONCEPTS. BUT AT THE SAME TIME, WE WOULD LAUNCH A COMMUNITY SURVEY AND HAVE POP UP EVENTS, TOWN HALLS, WHERE WE'RE PRESENTING THESE CONCEPTS TO THE COMMUNITY, REALLY ENGAGING THEM ON WHAT IDEAS WE HAVE FOR THE INDOOR RECREATION SPORTS COMPLEX, LOOKING AT WHAT THE COMMUNITY LIKES, YOU KNOW, IN RESPONSE TO THEIR SURVEY THAT THEY PARTICIPATED IN LAST YEAR, HOW WE CAN REVISE SOME OF THESE CONCEPTS AND WHAT THEY WANT TO SEE MORE OF, WHAT THEY LIKE, WHAT THEY DISLIKE, ETC. ALL IN ALL, WE HAVE TWO COMMUNITY TOWN HALLS TO BE DETERMINED AT A LATER DATE WHERE WE'RE PRESENTING THESE ALTERNATIVE CONCEPTS. AND THEN WE ALSO HAVE SIX COMMUNITY POP UPS WHERE WE'RE PRESENTING THESE IDEAS AGAIN, SOLICITING FEEDBACK AS WELL AS THE ONLINE ENGAGEMENT PLATFORM WHERE WE'LL BE SOLICITING FEEDBACK AND DOING AN ENGAGEMENT SURVEY WHERE THE COMMUNITY CAN BE INVOLVED AND PROVIDE FEEDBACK ON THESE ALTERNATIVES. ONCE WE CAN CONCLUDE THAT PHASE, WE'RE GOING TO SYNTHESIZE ALL OF THAT DATA, GET BACK WITH THE STAKEHOLDERS WITH THE TASK FORCE, AND PRESENT A FINAL PROGRAM, FINAL CONCEPT, AND THE FIRST MASTER PLAN DRAFT OF THE INDOOR RECREATION CENTER, WHICH AT THAT POINT WILL DO ANY REVISIONS, ANY ADDRESS, ANY COMMENTS THAT WE WANT TO TALK ABOUT PHASING, POTENTIAL IMPLEMENTATION, FUNDING STRATEGIES, OPERATING, OPERATING AND MAINTENANCE COSTS, HIGH LEVEL ANALYSIS, AND THEN DO A FINAL DELIVERY OF THE INDOOR RECREATION FINAL MASTER PLAN FOR Y'ALL'S REVIEW. THE TWO PARTS DEFINITELY ARE MOVING CONCURRENTLY. WHAT YOU SEE ON THE SCREEN RIGHT HERE IS THE ANTICIPATED PROJECT SCHEDULE. SO WE HAVE WE HAVE SOME PARTS MOVING A LITTLE BIT FASTER THAN OTHERS JUST BECAUSE OF EASE AND CONVENIENCE AND LOGISTICS. BUT AREA ONE, WE HAVE SLATED TO BE KICKED OFF AT THE SAME TIME AS ALL OF THE OTHER PARTS, BUT IT'S WRAPPING UP DESIGN IN ABOUT APRIL OF 2026, GOING OUT FOR BID IN APPROXIMATELY JULY OF 2026, AND THEN COMPLETED CONSTRUCTION BY ABOUT DECEMBER OF 2026. AND THEN AREAS 1B1C, YOU HAVE DESIGN BEING COMPLETED IN ABOUT JULY OF 2026, GOING OUT FOR BID IN NOVEMBER OF 26 WITH THE APPROXIMATE CONSTRUCTION COMPLETION OF NOVEMBER OF 27. SO THOSE ARE THE EXTERIOR COMPONENTS OF IT, ALL OF WHICH INCLUDE DESIGN, PERMITTING, BIDDING AND THEN CONSTRUCTION, ADMINISTRATION, CONSTRUCTION PHASE SERVICES. BUT THROUGH THAT PROCESS, YOU ALSO SEE THAT THAT PART TWO, WHICH IS THE MAGENTA PINK, PURPLE COLOR, WHICH IS THAT MASTER PLAN DELIVERY FOR THE INDOOR RECREATION MASTER PLAN THAT THAT I PREVIOUSLY MENTIONED. SO WITH THAT, HERE'S JUST A REMINDER OF SOME OF THOSE, THOSE RENDERINGS AND THE LOOK AND FEEL THAT WE HAVE. THIS WAS EXTREMELY HIGH LEVEL THAT WAS PRESENTED IN THE MASTER PLAN. SO NOW WE'RE GOING TO BE DIGGING DEEPER GOING INTO THAT 30% DESIGN SET 60%, DESIGN SET 90%, AND THEN FINAL DESIGN SET FOR CONSTRUCTION DOCUMENTS, BUT ALSO DOING A DEEPER DIVE FOR THE INDOOR RECREATION CENTER AS TO WHAT THAT THAT SPACE REALLY 
          [03:25:02]
LOOKS LIKE, WHAT OUR POTENTIAL PARTNERSHIPS, WHAT ARE OPERATING OPERATION AND MAINTENANCE COSTS, AND HOW WE CAN OFFSET SOME OF THOSE FUNDING STRATEGIES AS WELL. SO WITH THAT, I'LL TURN IT BACK OVER TO ROSIE TO COVER THE NEXT COUPLE SLIDES. THANK YOU, MARK, FOR THIS PARTICULAR CONTRACT. WE'RE USING A PROFESSIONAL SERVICES EXEMPTION INTENDED TO KEEP THE TEAM INTACT. THIS IS THE SAME TEAM THAT COMPLETED OUR INITIAL DESIGN, AND WE WANT TO MAINTAIN CONSISTENCY AND KEEP THE PROJECT MOVING QUICKLY. THIS APPROACH ENSURES THAT WE ARE MAKING THE MOST OF OUR VOTER APPROVED FUNDING, WHILE FOLLOWING THE PLAN THAT THE COMMUNITY SUPPORTED. THE OPTIONS THAT YOU HAVE IN FRONT OF YOU TODAY ARE TO EITHER APPROVE THE AGREEMENT IN THE AMOUNT OF $2,419,700, OR DENY THE AGREEMENT, AND STAFF RECOMMENDS APPROVING THE AGREEMENT. THANK YOU. A COUPLE QUESTIONS ON THE FINANCIALS, BECAUSE I KNOW THAT'S WHAT MOST PEOPLE ARE QUESTIONING. SO NUMBER ONE THE $160 MILLION PROPOSAL IS IN MULTIPLE PHASES. 
          AND THE LATER PHASES ARE AS THE MONEY BECOMES AVAILABLE. OR WE GO BACK TO THE VOTERS. THAT'S RIGHT. YEAH THAT'S CORRECT. THE 160 MILLION IS A CONCEPTUAL PLAN FOR THE AREA OVER POTENTIALLY A 10 TO 20 YEAR PERIOD, AS IT'S BUILT OUT IN THIS YEAR'S PROPOSED BUDGET. WE'VE INCLUDED THE $7 MILLION FROM THE 2020 BONDS FOR THE PROJECT. AND THEN WE DO HAVE OTHER MONIES IDENTIFIED. I THINK IT WAS UP TO $33 MILLION OVER THAT FIVE YEAR WINDOW FOR THE SPORTS COMPLEX, BUT NOT THE $160 MILLION. THIS THE DESIGN THAT WE'RE DOING. I UNDERSTAND WE'RE DESIGNING FOR THE WHOLE THING, BUT THIS ISN'T A DESIGN FOR ANYTHING OUTSIDE OF PHASE ONE. RIGHT? SO WE'RE WE'RE DESIGNING FOR WHAT WE'RE WE'RE FUNDING. THAT'S CORRECT. SO THE ONLY AMOUNT OF DEBT THAT WE'RE GOING TO BE ISSUING THAT WILL BE BACKED BY THE GENERAL FUND WILL BE $7 MILLION, WHICH WAS VOTER APPROVED. AND THAT WAS ISSUED IN AUGUST, AUGUST 5TH. OKAY. SO THAT THAT MONEY IS ALREADY IN THE BANK AND IT HAS TO BE USED FOR THIS. THE WAY IS ON THE WAY. YES, SIR. THE ADDITIONAL AMOUNTS THAT WE'RE GOING TO HAVE TO PAY LIKE IT GETS DESIGNED AND WE MOVE FORWARD, IT'S GOING TO BE MORE THAN 7 MILLION. SO THERE'LL BE ANOTHER 7 MILLION THAT WILL BE ASKING THE COUNTY TO CONTRIBUTE, WHICH THEY ALSO HAVE VOTER APPROVED BOND DOLLARS FOR. RIGHT. THERE'S 14 MILLION BETWEEN OUR SEVEN AND THE COUNTY'S SEVEN. SO THERE'S 14 MILLION. AND THEN THERE WERE OTHER SOURCES OF FUNDS THAT WE HAD IDENTIFIED FOR UP TO APPROXIMATELY 33 MILLION FOR THE. SO IS THAT PRIMARILY CASH OR IS THAT ALSO LIKE, FOR EXAMPLE, TERS TWO BACK TO DEBT FOR THE UP TO THE 33 MILLION UP TO THE 33. I'LL ASK PERVEZ TO COMMENT ON THE PIECES. SO WE HAVE $30 MILLION IN THE FIVE YEAR WINDOW FOR THE SPORTSPLEX PROJECT. 7 MILLION IS FROM THE CITY'S 2020 GEO BOND VOTER AUTHORIZED. WE HAVE ANOTHER 7 MILLION MATCHING FROM THE COUNTY. THAT GIVES US 14 MILLION AND THE REMAINING 16 MILLION IS GOING TO BE EITHER FROM PARK DEVELOPMENT FUND FEES THAT WE COLLECT OVER TIME. AND IF WE DON'T, THEN WE HAVE TWO OPTIONS EITHER. GENERAL FUND MAKES TRANSFERS TO COVER THAT WITH CASH FROM THE FUND BALANCE, OR WE ISSUE CERTIFICATES OF OBLIGATION, WHICH IS GOING TO BE A TAX SUPPORTED DEBT NONVOTER AUTHORIZED TAX SUPPORTED DEBT. OKAY. AND BUT FOR EXAMPLE, THE COLAS, THE COLAS, ROUNDABOUTS IF WE THOSE THAT'S CO BONDS BUT THEY'RE BEING PAID FOR BY TERS NUMBER TWO. CORRECT. CORRECT. 
          THAT'S CORRECT. AND I'M NOT SUGGESTING THAT TERS NUMBER TWO SHOULD BE TRYING TO PAY FOR A REGIONAL SPORTSPLEX ALL ON ITS OWN. BUT THERE WOULD BE CONCEIVABLY OVER THE NEXT FIVE YEARS AS WE'RE ROLLING THIS OUT, FUNDS AVAILABLE TO HAVE THE TERS BACK BECAUSE THE TERS BOARD AND THE COUNTY SAID THAT THEY WANT US USING THEIR FUNDS THAT THEY CONTRIBUTE INTO TERS TO FOR CAPITAL PROJECTS LIKE THIS. SO THERE'S A CONCEIVABLY THAT THAT WOULD BE THE FUNDING MECHANISM FOR HOW WE COMPLETE PHASE TWO. SO IT'S GOING TO BE A QUESTION FOR COUNCIL. I WON'T BE HERE WHEN THAT HAPPENS. BUT I JUST WANT TO PUT THIS IN YOUR MIND THAT I DO THINK THAT EVEN WITH THE MONIES THAT WE'RE SPENDING ON THE THREE ROUNDABOUTS ON COLAS, THAT OVER THE NEXT FIVE YEARS, AS WE'RE ROLLING THIS OUT, THAT THERE WOULD BE CAPACITY THERE WITHIN THE CASH FLOWS FROM TERS NUMBER TWO TO PAY FOR THE REMAINING AMOUNT, SO THAT WE DON'T NECESSARILY EVEN HAVE TO TAKE PARK, PARK MONEY. WE COULD USE THAT FOR OTHER PROJECTS. AND THE REASON THAT I SAY THAT, THAT I WOULD PREFER TO DO THAT IS BECAUSE IF WE USE PARK LAND DEVELOPMENT FUNDS 
          [03:30:06]
DOLLARS, THAT IS 100% OUR MONEY, AND THAT MEANS THAT IT AND IT COULD BE USED ANYWHERE IN THE CITY. BUT IF WE THE TERS NUMBER TWO, IF WE CAN AFFORD TO ISSUE CO BACKED TERS BACKED BONDS, THEN THOSE DOLLARS ARE PAID FOR BY US AND THE COUNTY TOGETHER. SO THE 14 MILLION THAT WE START WITH IS A 5050 MATCH. SO THE COUNTY IS LITERALLY WE'RE GETTING A SPORTSPLEX FOR HALF OFF IN TERMS OF WHAT OUR TAXPAYERS HAVE TO PAY. AND THEN IF WE ISSUE TERS BACKED CO BONDS FOR THE REMAINDER OF THE PHASE ONE, THEN THEN THAT DEBT SERVICE WOULD ALSO BE PAID BY THE COUNTY AS WELL AS THE CITY. SO THE ENTIRE $33 MILLION PROJECT, ESSENTIALLY WHICH THE CITY CONTROLS WOULD BE PAID BACK ALMOST HALF, NOT QUITE HALF, BECAUSE THE COUNTY'S TAX RATE IS LOWER, BUT IT WOULD BE ALMOST HALF OF IT WOULD BE PAID FOR BY THE COUNTY. SO IT IS A VERY GOOD INVESTMENT FROM THAT STANDPOINT. AND THE ONLY AMOUNT THAT THAT THE ACTUAL GENERAL FUND WOULD BE ON THE HOOK FOR FROM THE CITY OF KYLE, WOULD BE $7 MILLION OUT OF A $33 MILLION PROJECT. SO I JUST I THINK THAT'S REALLY IMPORTANT TO REALLY MAKE SURE YOU UNDERSTAND WHEN YOU'RE TALKING ABOUT, BECAUSE THE NARRATIVE THAT'S BEING PUT OUT THERE IS THAT THIS IS $160 MILLION PROJECT, AND THAT ALL ON THE TAXPAYERS OF KYLE. AND THE ACTUAL MATH IS THAT IT'S A $33 MILLION PROJECT, AND ONLY 7 MILLION OF THAT IS BEING FUNDED AND PAID FOR BY THE TAXPAYERS. 
          SO THERE'S A BIG DIFFERENCE BETWEEN WHAT IS BEING SAID 161 MILLION VERSUS WHAT IS ACTUALLY HAPPENING, 7 MILLION, WHICH THE VOTERS APPROVED. SO I JUST I WANT TO MAKE THAT THAT PART REAL CLEAR. MAYOR, IF I COULD JUST MAKE ONE OTHER ONE OTHER CLARIFICATION AS WELL, IS CROMWELL DRIVE IS A PROJECT THAT WILL BE UNDERTAKING AS PART OF THE SPORTSPLEX. IT WILL GO FROM BASICALLY THE SPROUTS AREA UP TO ALL THE WAY UP TO RICHARDSON DRIVE. THAT COULD BE CONSIDERED A TYPICAL CIP PROJECT. WE'RE FUNDING THAT AS PART OF THAT 33 MILLION. SO IT'S A ROAD PROJECT EMBEDDED INTO THE ENTIRE SPORTSPLEX. SO IT'S A IT'S A PARK IMPROVEMENT, BUT ALSO A MOBILITY IMPROVEMENT AS WELL. ALL RIGHT. DOES ANYBODY HAVE ANY. YEAH. YEAH I WAS GOING TO BRING THAT UP ACTUALLY THAT OF THE 33 ABOUT 6 OR 7 MILLION IS A CIP PROJECT FOR THE ROAD. SO WE'RE WE'RE ACTUALLY DOING A LOT LESS ON THE, THE PARKS. SO WE'RE NOT SPENDING 33 MILLION ON THE PARKS, BUT BECAUSE YOU HAVE THAT CIP ROAD PROJECT IN THE MIDDLE OF THAT AS WELL. YEAH. SO IF I MAY GO IN AHEAD. SO WHAT WHAT YOU'RE PROPOSING OR WHAT THE SOME OF THE SUGGESTIONS YOU'RE MAKING WAS UTILIZING SOME OF THE TERS MONEY AS LIKE A CERTIFICATE OBLIGATION TO FUND THAT. BUT I GUESS MY QUESTION WOULD BE THEN WE STILL HAVE HEROES MEMORIAL THAT WE HAVE TO PAY DOWN ON, INCLUDING A LOT OF THAT AREA. SO BY DOING THAT, ARE YOU TAKING ARE WE TAKING AWAY FUNDING TO GET THAT PAID DOWN TO PAY ON FOR ANOTHER PROJECT? YOU SEE WHAT I'M SAYING? BECAUSE WE'RE TRYING TO PAY OFF HEROES MEMORIAL AND IT'S LIKE $10 MILLION THERE. SO IF WE'RE GOING OUT AND SAYING, WELL, WHAT WE'LL DO IS WE'LL TAKE A LOAN OUT ON THE TERS. BUT THEN THAT PUTS US MORE IN DEBT TO TRY TO PAY OFF THE HEROES AREA, BECAUSE WE, WE DON'T HAVE A LOT OF DEVELOPMENT OUT THERE YET. AND WE JUST GOT TO FINISH SEEING THAT IT'S ONE OF THE LOWEST OF THE INCOMING AS FAR AS THE TAX REVENUE. SO THAT WOULD BE A QUESTION THERE TO SAY IF WE CHOSE THAT ROUTE, WE WOULD GET BEHIND ON THOSE PAYMENTS THERE AS WELL. WELL, WE DO HAVE A PAYMENT FROM TERS NUMBER TWO BACK INTO THE GENERAL FUND AS A REPAYMENT FOR HEROES MEMORIAL PARK. THAT WAS SOMETHING IN IN OUR BUDGET. IT'S A PART OF THE FIVE YEAR PLAN AS WELL. SO THOSE THOSE PAYMENTS AND REPAYMENT THAT HAS BEEN DISCUSSED PREVIOUSLY WITH THE COUNCIL THAT'S IN OUR CASH FLOW MODEL. 
          OKAY. IF WE WERE, WHAT IF THE SITUATION WOULD BE TO WHERE WE TOOK FROM OTHER PARK FUNDS? BECAUSE I'D HATE FOR EVERYTHING, ALL OF OUR PARK PARK MONEY TO GO TOWARDS SOMETHING LIKE THIS. AND THEN SOME OF THE OTHER PARKS DON'T GET FUNDED FOR LATER ON, OR IMPROVEMENTS AND SO FORTH. 
          LET'S SAY LIKE KENSINGTON, BECAUSE I KNOW WE HAVEN'T BUDGETED FOR 17 MILLION, BUT WE DON'T KNOW FOR SURE IF IT'S GOING TO WHAT CONCEPT DESIGN WE HAVE WOULD COME OUT TO THAT MUCH. IT MIGHT COME IN A LOT LOWER. SO WOULD SOME OF THAT FUNDING COULD BE REROUTED IN THE 
          [03:35:04]
SENSE TO US, BECAUSE I'M JUST TRYING TO BE DEVIL'S ADVOCATE HERE, BUT AT THE SAME TIME, I'M TRYING TO FIGURE OUT HOW THIS WOULD GET PAID FOR IN A SENSE, BECAUSE EVERYBODY A LOT OF PEOPLE THAT WE HEAR THAT COME HERE ARE TOTALLY AGAINST THE SPORTSPLEX FROM FROM THE BEGINNING. THEY STILL DON'T KNOW THE CONCEPT DESIGN IF IT'S GOING TO BE RUN BY A THIRD PARTY COMPANY, OR IS IT GOING TO BE ACTUALLY FUNDED OR RAN BY OUR CITY OF KYLE PARKS AND RECREATION STAFF? BUT AT THE SAME TIME, I'M TALKING MAINLY ABOUT THE FINANCES OF HOW PHASE ONE WOULD GET FUNDED, BECAUSE, AGAIN, ONE OF THE BIGGEST. ONE OF THE BIGGEST NEEDS THAT WE'VE HAD WAS TO HAVE AN INDOOR RECREATION CENTER. SO AS MUCH AS I'VE HAD A LOT OF PEOPLE HARP ON ME ABOUT MOVING FORWARD WITH THIS, I REMEMBER A TIME 20, 22 YEARS AGO WHEN WE MOVED HERE, WE DIDN'T HAVE ANYTHING. SO I'M REALLY INTERESTED IN THE INDOOR RECREATION PART. AS LONG AS I KNOW IT'S RAN FOR CITY, RAN BY OUR CITY, AND IT'S FOR OUR RESIDENTS AND SO FORTH. BUT I'M JUST TRYING TO GET A GRASP OF THE FUNDING OF HOW THIS WOULD GO AND THIS. AND IF IT APPROVES WITH THE 2,000,400, WHERE WOULD THAT MONEY COME FROM? THE $2 MILLION FOR THE CONCEPT DESIGN? IS IT GOING TO COME OUT OF THE 7 MILLION OR THE 14 MILLION, OR IS THAT GOING TO COME STRAIGHT FROM GENERAL, THE GENERAL FUND? RIGHT OFF THE BAT, IT COMES OUT OF THE BOND PROCEEDS. AND SO LET ME TRY TO ADDRESS SOME OF THOSE QUESTIONS IF I COULD. FIRST OF ALL, BLAKE KENSINGTON, THE ALL WHEEL SKATE PARK, THE IMPROVEMENTS THAT WE'RE MAKING. ALL OVER THE I'M GETTING CHOKED UP JUST TALKING ABOUT IT. WELL, ONE WAY TO SAY IT IS ALL OF THOSE PROJECTS ARE BEING PAID FOR 100% BY THE TAXPAYERS. THIS IS THE ONLY PROJECT, THE ONLY PARK PROJECT THAT WE ARE MOVING FORWARD WITH. IT'S ALSO HAS A COUNTY MATCH LIKE LIKE IF THE ACTUAL MATH OF IT IS THE OPPOSITE OF THE WAY THAT FOLKS ARE TRYING TO MAKE YOU THINK. THE TRUTH IS, IF WE WERE BEING FINANCIALLY SMART WITH THE WAY WE USE THE TAXPAYERS MONEY, WE WOULD GET RID OF KENSINGTON. 
          WE'D GET RID OF ALL THE SKATE PARK PROJECTS AND ALL THAT, AND WE'D PUT EVERYTHING INTO TERS NUMBER TWO, BECAUSE TERS NUMBER TWO IS OBVIOUSLY THAT'S NOT WHAT WE'RE DOING, THAT I UNDERSTAND WE GOT THE MATCHING FUNDS RIGHT. YES I DO I WAS TO BE SAYING IS TERS NUMBER TWO IS NOT THE ENTIRE CITY. SO THAT'S SO THAT'S WHY WE DON'T WANT TO SUFFOCATE OTHER PROJECTS THAT WE ALL BELIEVE. YOU KNOW OUR RESIDENTS DESERVE TO. THIS IS A VERY HIGH QUALITY PROJECT THAT WE DO WANT TO BRING, AND IT DOES MAKE MATHEMATICALLY GOOD SENSE TO PARTNER WITH THE COUNTY ON IT. 
          THAT WAS GOING TO BE ONE OF THE QUESTIONS I WAS GOING TO ASK IS IF WE WENT TO A BOND WHERE WE NEEDED MORE MONEY AND LET THE VOTERS DECIDE, IS IT A JOINT COUNTY CITY BOND? SO BECAUSE BOTH WILL BE THE USERS OF. LET ME LET ME TRY TO ADDRESS THAT. YEAH. SORRY, I GOT CHOKED ON MY QUESTION SHOULD BE. YEAH. SO I THINK THE FIRST THING IS ALL OF THE PARKS THAT WE'VE TALKED TO YOU ABOUT, WHETHER IT'S THE ALL WHEELS, SKATE PARK, LAKE KENSINGTON, THE PLAYGROUND IMPROVEMENTS THAT WE'RE DOING, ALL OF THE THINGS ACROSS THE SYSTEM, AND WE'VE GOT A LOT OF THOSE IN PLAY RIGHT NOW. THEY'RE ALL FUNDED IN THE PROPOSED BUDGET. SO THIS IS NOT A MUTUALLY EXCLUSIVE EXERCISE THAT WE DO THE SPORTSPLEX AND SOMETHING ELSE DOESN'T GET DONE. 
          THAT'S NOT WHAT WE'RE SUGGESTING. WE'RE SUGGESTING THAT ALL OF THOSE PROJECTS GO FORWARD SIMULTANEOUSLY. THAT'S THE PROPOSAL. THE BONDS THAT WERE APPROVED IN 2025 YEARS AGO BY THE VOTERS WAS FOR AN OUTDOOR SPORTSPLEX. WE'RE TRYING TO FULFILL THE DIRECTION OF THE VOTERS THAT THEY GAVE US FOR THOSE BONDS. THAT'S WHAT THIS IS ABOUT, IS DELIVERING THAT PROMISE THAT WAS MADE TO THEM. THOSE ARE BONDS THAT ARE ISSUED BY THE CITY AND THE COUNTY. SO INDIVIDUALLY, THEY ISSUE THIS COUNTY ISSUES THEIR OWN BONDS. YOU. ON AUGUST 5TH, THE COUNCIL AUTHORIZED $7 MILLION OF BONDS FOR THIS PROJECT. THOSE ARE FUNDS THAT WILL BE USED TO PAY FOR THIS DESIGN COST AND ULTIMATELY THE CONSTRUCTION. SO THAT'S HOW THAT'S HOW THAT WORKS. BUT I GUESS I JUST WANT TO MAKE SURE IT'S CLEAR THESE THIS PROJECT DOES NOT TAKE AWAY FROM ANOTHER PROJECT THAT'S BEEN DISCUSSED TO MAYOR TO COUNCIL MEMBER TOBIAS'S POINT. WE DON'T KNOW YET WHAT THE FINAL COST OF LAKE KENSINGTON IS GOING TO BE. IT COULD BE $15 MILLION, WHICH THAT WOULD POTENTIALLY GIVE US $2 MILLION MORE. THAT COULD BE USED FOR ANY OTHER PROJECT THAT YOU THAT YOU THOUGHT WAS APPROPRIATE OR JUST TO LOWER THE TOTAL COST. THOSE ARE THINGS WE'LL WE'LL KNOW MORE ABOUT AS WE GET INTO DESIGN. JUST LIKE FOR THIS PARTICULAR PROJECT, WE HAVE AN ESTIMATE OF WHAT THE COST IS. BUT WHEN WE GET INTO THE ACTUAL DESIGN. THANK YOU. 
          WHEN WE GET INTO THE ACTUAL DESIGN FOR ALL THESE ELEMENTS, WE'LL HAVE BETTER IDEAS ABOUT 
          [03:40:05]
WHAT THE COST WILL BE AND WHAT ARE THOSE OFFSETS AND OPTIONS THAT WE HAVE OF MANAGING THOSE COSTS. BUT UNTIL WE GET INTO THE ACTUAL DESIGN, YOU DON'T KNOW THAT. SO THIS IS THE BEGINNING OF THE PROCESS. IT'S MANY DIFFERENT DISCUSSIONS THAT WE'LL HAVE ON IT. BUT AGAIN, FROM OUR STANDPOINT, VOTERS GAVE DIRECTION IN 2020, $14 MILLION. WE WANT TO PUT THAT MONEY TO ACTION TO ACTUALLY BUILD THE PROJECT THAT WE WERE DIRECTED TO BUILD BY THE VOTERS. AND I GUESS THE OTHER THING I'D ADD WOULD JUST BE THAT AS WE LOOK AT THE INDOOR DESIGN, WHICH IS BASED ON THE THAT'S WHAT WE'RE SORT OF MOVING ON TO UNDERSTAND THIS. AND IT'S BEEN HELPFUL TO GET MORE COMMUNICATION. THE MORE THAT WE TALK ABOUT THIS, THE MORE IT'S BECOMING PRETTY CLEAR TO EVERYONE OUT THERE. I HEARD ABOUT THE CROMWELL, THE RICHARDSON EXTENSION. SO I KNEW THAT THERE WAS GOING TO BE PART OF THAT IN, IN, IN THE FUNDING THAT WE'RE LOOKING AT IN HERE. 
          SO IT'S NO SURPRISE ANYMORE. IT'S NO SURPRISE THAT WE HAVE TO WE'RE PUTTING THIS, THESE AMOUNT OF DOLLARS IN HERE, THE NEXT CLEAR LEVEL THAT WE HAVE TO GET TO IS WHAT KIND OF PARTNERSHIPS CAN WE WORK ON. BECAUSE I DO BELIEVE TOURS MAKE SENSE. BUT IS THAT THE ONLY THING THAT THAT WE CAN USE FINANCIAL TOOL. YOU KNOW, WHAT ARE THE FINANCIAL TOOLS. AND I AM ON BOARD WITH MOVING ON IN PHASES SO THAT IT'S EASIER TO TAKE IT IN. RIGHT. YOU KNOW, PEOPLE GOT UPSET WITH ME THE OTHER TIME BECAUSE I VOTED FOR THE MASTER PLAN DESIGN. AND I SAID, LOOK, I JUST WANT TO PUT IT ON THE TABLE. I THINK THAT FAMILIES WITH CHILDREN DESERVE, YOU KNOW, A STAKE IN THIS AS WELL. YOU KNOW, WE NEED TO HAVE SOME SORT OF REC CENTER. SO WE GOT TO KEEP THAT FOCUS TO COMMUNITY, LOCAL OR, YOU KNOW, FOR LOCAL FOR OUR RESIDENTS FIRST. RIGHT? OBVIOUSLY, WE CAN'T HAVE IT ALL FREE IF IT'S ONLY PAID FOR BY. WE'VE GOT TO HAVE SOME WAY TO OPERATE IT. 
          RIGHT. AND WHAT I'M SAYING IS FIND THAT FIND THE ANSWER, FIND THE SOLUTION. RIGHT. BECAUSE I THINK WE'RE STARTING TO GET TO THAT PLACE WHERE PEOPLE ARE STARTING TO SEE WHAT VISION WE COULD HAVE. WE JUST WE JUST HAVE TO HAVE A WAY TO FINANCIALLY SUSTAIN IT SO THAT IT DOESN'T SUFFOCATE ALL THE OTHER GREAT PROJECTS IN OUR IN OUR CITY, YOU KNOW? DUE DILIGENCE AND FEASIBILITY, THE BOND, THE AMOUNT THAT WE OWE. I MEAN, I'LL JUST REFLECT OFF OF THAT AND THEN EVERYBODY ELSE CAN CHIME IN. I'M JUST LOOKING AT ALSO WHAT WE OWE ON OUR CITY DEBT AS FAR AS OUR BONDS, WE STILL PAYING OFF STUFF FROM 2013. AND THEN ALSO WITH THE POLICE STATION AND WITH THE HEROES. SO I'M JUST KEEPING A LOT OF THE FINANCES IN MIND WHEN I'M MAKING MY DECISION. YEAH. ONE OF THE THINGS ABOUT THOSE PROJECTS IS WE BUILT THEM AT THE RIGHT TIME. 
          WE DID THEM PRE-COVID, SO WE GOT REALLY GOOD BARGAINS ON THEM. WE'RE PROBABLY GOING TO BE PAYING THEM OFF PRETTY QUICKLY. I THINK THE PD IS ALMOST A THIRD OR SOMETHING LIKE THAT PAID OFF MIGHT BE A LITTLE BIT WRONG, BUT WE DID THOSE AT THE RIGHT TIMING AND LONGER WE PUT PROJECTS OFF, IT'S GOING TO COST US MORE, BUT WE'RE NOT BUILDING 150 SOMETHING MILLION DOLLAR PROJECT. WE DON'T HAVE THAT KIND OF MONEY. YOU KNOW, ANYTHING WE DO OUTSIDE THE BOND, WE'RE GOING TO HAVE TO GO TO THE VOTERS. SO THERE'S GOING TO BE A LOT OF INPUT. WE JUST LIKE TO DO AN INDOOR SPORTS PLEX. IT'LL GO TO THE VOTERS, THEY'LL HAVE ALL THE INFORMATION, AND IT'S NOT GOING TO BE THE SEVEN OF US DECIDING ON THAT BUILDING. IT'LL BE ALL THE VOTERS THAT COME OUT AND VOTE ON IT. WHETHER WE GET THAT BUILDING AND, YOU KNOW, IT'LL BE PUBLIC INPUT, IT'LL IT'LL BE EVERYTHING ON THAT BUILDING. IT'S NOT GOING TO BE THE SEVEN OF US DECIDING ON A BUILDING OR THE NEXT SEVEN. IT'S GOING TO BE THE VOTERS THAT DECIDE ON THAT BUILDING. BUT RIGHT NOW, MOVING FORWARD WITH WHAT WE'VE ALREADY BEEN ALLOCATED IS IMPORTANT BECAUSE THE COUNTY EXPECTS US TO USE THAT $7 MILLION. IF WE DON'T USE IT, THEY'RE NOT GOING TO WE LOSE THAT $7 MILLION. SO IT'S IMPORTANT TO REMEMBER THAT. SO WE NEED TO TAKE ADVANTAGE OF THAT 7 MILLION. AND I LIKE THE MAYOR'S PLAN ABOUT GETTING PAYING A LOT OF THIS THROUGH THE TOURS, WHAT WE CAN TO BE GREAT, TO GET THE COUNTY PARTICIPATION. BUT AT THE SAME TIME, I MEAN, WE'RE WE'RE NOT GOING TO BUILD SOMETHING OUTSIDE OF WHAT WE CAN'T AFFORD BECAUSE WE DON'T HAVE THAT KIND OF MONEY TO BUILD AN INDOOR SPORTS PLEX RIGHT NOW. IT'LL HAVE TO GO TO THE VOTERS, AND THE VOTERS WILL DECIDE WHAT KIND OF BUILDING THEY WANT. AND IT'S THE WAY THE PROCESS WILL WORK. YEAH. I'LL I'LL JUST ADD ONE MORE THING ABOUT THE LAKE KENSINGTON COMMENT, BECAUSE WHY WAS IT BUDGETED AT $17 MILLION? BECAUSE THAT'S THE AMOUNT THAT WE SPENT FOR HEROES MEMORIAL PARK IN LA VERDE. SO THE GOAL WAS TO MAKE LAKE KENSINGTON BE AS PREMIUM AND PREMIER OF A PROJECT AS THE COMBINATION OF HEROES MEMORIAL PARK AND LA VERDE. BUT WHAT'S THE DIFFERENCE BETWEEN LAKE KENSINGTON 17 MILLION AND HEROES MEMORIAL PARK AND 17 MILLION? WE DON'T HAVE A TOURIST IN THAT AREA. THAT'S 
          [03:45:03]
RIGHT. WE ARE NOT PUTTING A TAX, A SPECIAL TAX ON THE PEOPLE OF KENSINGTON TRAILS AND SOUTH LAKE RANCH AND THE VARIOUS FOLKS THERE, AND TELLING THEM THAT THEY HAVE TO PAY IT BACK TO THE GENERAL FUND. SO THE FINANCIALS OF THE SITUATION ARE DOUBLY GEARED IN FAVOR OF THE FOLKS FROM LAKE KENSINGTON, BECAUSE GUESS WHO HAS TO PAY FOR LAKE KENSINGTON? PEOPLE WHO LIVE IN THE TOWERS. NUMBER TWO, THEY STILL HAVE TO PAY FOR LAKE KENSINGTON. BUT GUESS WHO DOESN'T HAVE TO PAY FOR HEROES MEMORIAL PARK AND LA VERDE? PEOPLE WHO LIVE IN KENSINGTON TRAILS BECAUSE IT'S BEING PAID BACK FROM FROM THE TOUR'S DEBT SERVICE AND OR IN AS A FORM OF DEBT SERVICE. SO THE FINANCIALS, THE ACTUAL MATH OF THE SITUATION IS DOUBLY WEIGHTED IN FAVOR OF LAKE KENSINGTON. SO THE TRUTH IS, IN TERMS OF THAT PAYBACK, IF WE WERE GOING TO TREAT IT FAIR FAIRLY, THIS IS WHAT FINANCIALLY FAIRLY WOULD BE. WE HAVE A $17 MILLION PARK ON THE WEST SIDE, PAID FOR BY THE GENERAL FUND, AND A $17 MILLION PARK ON THE EAST SIDE, PAID FOR BY THE GENERAL FUND. AND EVERYBODY PAYS THEIR FAIR SHARE. AND THEN WE TAKE THOSE FUNDS, THOSE PAYBACK FUNDS THAT WERE CURRENTLY THE TOURISTS PAYING BACK TO THE GENERAL FUND AND USE THEM FOR SOMETHING ELSE. THAT'S WHAT FAIR WOULD ACTUALLY BE. SO IT'S JUST VERY I KNOW IT'S TEMPTING TO WANT TO BUY INTO THE RHETORIC AND, AND SAY, YOU KNOW WHAT, THEY'RE GETTING SO MUCH ON THE WEST SIDE. AND, YOU KNOW, THEY HAVE THOSE NICE PARKS. BUT THE TRUTH IS, WE ARE WE ARE TAKING THE EXCESS RESOURCES FROM OUR MOST PROFITABLE DISTRICT IN OUR CITY, AND WE'RE USING THEM TO SELF-FUND PROJECTS, WHEREAS THE ONES ON THE EAST SIDE ARE NOT BEING SELF-FUNDED. THEY'RE BEING PAID FOR BY THE ENTIRE CITY. SO I JUST, I WOULD REALLY LIKE TO SEE THIS COUNCIL STAND BEHIND THESE PROJECTS AS THEY'RE BEING PROPOSED, AND UNDERSTAND THAT IT IS MORE THAN FAIR FROM THE STANDPOINT OF EQUITY AND INCLUSION AND DISTRIBUTION OF RESOURCES. IT'S IF, IF, IF ANYTHING, IT IS IT IS UNFAIR TO THE PEOPLE WHO LIVE WITHIN THE TOWERS, NUMBER TWO, TO SAY THEY HAVE TO PAY FOR THEIR INTERSECTION IMPROVEMENTS, THEY HAVE TO PAY FOR CROMWELL, THEY HAVE TO PAY FOR SPORTSPLEX ALL ON THEIR OWN WHILE EVERYONE IN THE CITY USES IT. BUT ON THE EAST SIDE, THEY IT'S NOT THE SAME ARGUMENT. EVERYBODY CONTRIBUTES TO THE PROJECTS ON THE EAST SIDE, SO I JUST I HOPE WE CAN KEEP THOSE THOSE FINANCIAL REALITIES IN OUR MINDS AND STOP. AND I'M NOT SUGGESTING ANYONE IS DOING THAT HERE. I'M SAYING THAT THAT IS WHAT HAS BEEN BY A SMALL GROUP OF PEOPLE. THAT HAS BEEN THE ARGUMENT THEY ARE TRYING TO GET US TO BELIEVE. 
          AND IT IS NOT TRUE. IT'S NOT TRUE. SO ANYWAY, I WOULD VERY MUCH LIKE TO VOTE ON A DESIGN PLAN FOR A SPORTSPLEX. I'VE BEEN TRYING SINCE 2017, AND I THINK OUR COMMUNITY AS A WHOLE COULD REALLY BENEFIT FROM IT. MAYOR. MOTION TO APPROVE AGENDA ITEM 32ND MOTION BY MAYOR PRO TEM, SECONDED BY MAYOR THAT WE APPROVE AGENDA ITEM 30. IS THERE ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR SAY AYE. AYE. ALL OPPOSED? ALL RIGHT. MOTION CARRIES 7 TO 0. ALL RIGHT. NEXT 
          [31) Receive a report, hold a discussion, and provide staff direction regarding the results of the Risk Assessment and Analysis completed by Weaver and Tidwell, LLP, for the City’s critical organizational processes.]
UP IS AGENDA ITEM 31. STAFF REPORTS. RECEIVE A REPORT, DISCUSSION. PROVIDE STAFF DIRECTION REGARDING THE RESULTS OF THE RISK ASSESSMENT AND ANALYSIS COMPLETED BY WEAVER AND TIDWELL LLP FOR THE CITY'S CRITICAL ORGANIZATIONAL PROCESSES. MAYOR AND COUNCIL, JUST A QUICK BACKGROUND BEFORE I TURN IT OVER TO OUR CONSULTANTS. IN FEBRUARY 2025, THE CITY COUNCIL APPROVED A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH WEAVER AND TIDWELL LLP TO CONDUCT A RISK ASSESSMENT ANALYSIS OF THE CRITICAL FUNCTIONS AND PROCESSES WITHIN THE CITY. ORGANIZATION. THE CITY'S CONSULTANT, THE WEAVER TEAM, HAS COMPLETED THE RISK ASSESSMENT ANALYSIS AND HAS ISSUED A REPORT. UNDER THIS AGENDA ITEM, THE WEAVER TEAM WILL PRESENT THE RESULTS OF THE RISK ASSESSMENT ANALYSIS AND REVIEW THE RECOMMENDATIONS WITH THE CITY COUNCIL. SO LET ME INTRODUCE TO YOU THE WEAVER TEAM. WE HAVE BRANDON TENNIS. 
          HE'S A PARTNER. AND WE ALSO HAVE HOLLY HARD. SHE'S A DIRECTOR WITH WEAVER ALSO. SO WITH THAT I'M GOING TO TURN IT OVER TO BRANDON. AND AS BRANDON IS MAKING HIS WAY TO THE PODIUM, I DID WANT TO SAY THEY WERE TRAVELING TODAY AND THEY ASKED TO BE AT THE END OF THE AGENDA. 
          NOW, THIS FEELS LIKE PUNISHMENT TO MAKE YOU STAY HERE FOR HOURS. SO THEY GOT HERE ULTIMATELY PRETTY CLOSE TO ON TIME. SO WE'RE SORRY FOR THE WAIT, BUT GLAD TO HAVE YOU HERE. NO, NO, NO, IT'S A PLEASURE TO BE HERE. AND WE'VE LEARNED A LOT ABOUT THE CITY TODAY. IT'S A GREAT TIME TO BE HERE AT THE CITY OF KYLE. AND SO IT IS A PLEASURE AGAIN, WHAT PEREZ INTRODUCED US. 
          [03:50:01]
WE ARE HERE TO TALK ABOUT THE BRIEFING OF THE RISK ASSESSMENT THAT WAS PERFORMED HERE FOR THE CITY. AND SO MY NAME AGAIN IS BRANDON TANIS, MY PARTNER WITH WEAVER'S GOVERNANCE, RISK AND COMPLIANCE GROUP. AND I'M JOINED WITH HOLLY HART, MY COLLEAGUE THAT WAS BOOTS ON THE GROUND, WORKED REALLY CLOSELY WITH CITY MANAGEMENT AND OTHER STAFF AS WELL THROUGHOUT THIS PROCESS. SO A LITTLE BIT ABOUT WEAVER. WE ARE A FULL SERVICE PUBLIC ACCOUNTING FIRM. WE'VE BEEN AROUND FOR 75 YEARS AND SERVICED OF THAT 75 YEARS. GOVERNMENTAL ENTITIES, MUCH LIKE YOU ALL, WE'RE HEADQUARTERED HERE IN HOUSTON IN TEXAS, BASED IN TEXAS. PROUD. AND SO WE ARE EXCITED TO BE HERE TODAY TO TALK ABOUT THIS RISK ASSESSMENT. AND SO YOU ALL ON THE COUNCIL AND DEFINITELY THINKING OF WHAT DOES IT MEAN TO DO A RISK ASSESSMENT. YOU KNOW, WHEN YOU THINK RISK YOU'RE ALWAYS THINKING, YOU KNOW, WHAT SLIPS, TRIPS AND FALLS, THINGS THAT ARE GOING TO GET US IN LEGAL TROUBLE, THINGS THAT ARE CONCERNING THAT THAT MAY COME TO YOU ALL AT THE PODIUM TO HERE TO VOTE ON, AND REALLY WHAT THE RISK ASSESSMENT HELPS, ESPECIALLY IF A GROWING CITY LIKE KYLE IS TO UNDERSTAND WHAT ARE THE KEY THINGS THAT WE NEED TO BE AWARE OF, WHERE ARE THE AREAS WE NEED TO FOCUS RESOURCES, BUDGETS, STAFF, THINGS THAT WE KNOW THAT ARE CONTINUING TO GROW, THAT IMPACT. AND SO OF THAT RISK ASSESSMENT, YOU THINK NOT JUST FINANCIALLY OR LEGALLY, YOU THINK REALLY ABOUT THE DIFFERENT OPERATIONS AND THE PROCESSES THAT WE PERFORM. AND SO WITH THIS RISK ASSESSMENT, WE TAKE THIS VERY COLLABORATIVE APPROACH. AGAIN, THIS IS NOT WEAVER COMING IN TO SAY THESE ARE THE RISKS OF THE CITY. IT'S A COLLABORATIVE APPROACH WITH MANAGEMENT TO REALLY TALK THROUGH ALL THE DIFFERENT PROCESSES AND OPERATIONS THAT WE HAVE AND WHERE THE RISK AND WHERE THE AREAS THAT WE NEED TO FOCUS OUR TIME AND PRIORITIES AS WE CONTINUE THROUGH THE YEARS. AND SO THE PROCESS LEVEL RISK ASSESSMENT APPROACH REALLY IS A COMPREHENSIVE ASSESSMENT OF ALL THE DIFFERENT FUNCTIONS, NOT JUST FINANCIAL, NOT JUST OPERATIONAL, BUT REALLY ALL TYPES OF OPERATIONS, INCLUDING CITYWIDE, ADMINISTRATIVE, OPERATIONAL AND SO FORTH. AND WE LOOK AT RISK IN THE SENSE OF PROBABILITY AND IMPACT. SO WHAT'S THE PROBABILITY OF A RISK OCCURRING. AND ALSO WHAT THAT IMPACT WOULD BE ON THAT SPECIFIC FUNCTION. AND SO THIS RISK ASSESSMENT WAS DESIGNED TO REALLY EVALUATE THAT PROBABILITY AND IMPACT IN AN INHERENT RISK ENVIRONMENT. AND SO YOU MAY THINK WHY DO WE DO ALL THESE THINGS TODAY TO REALLY PREVENT THE BAD THINGS FROM HAPPENING. 
          BUT INHERENTLY WE DO THAT BECAUSE THEY ARE RISKY. AND SO WE LOOK AT EVERYTHING AT INHERENT RISK. AND THEN WE EVALUATE WHAT THOSE RISK MITIGATING FACTORS ARE AND WHAT ARE THE RESIDUAL RISKS THAT REMAINS. AND SO WE'RE GOING TO WALK THROUGH KIND OF THAT PROCESS A LITTLE BIT MORE HERE TONIGHT. AGAIN WE WORKED CLOSELY WITH CITY MANAGEMENT. AND WE DID REALLY IN WHAT WE CALL A FOUR PHASED APPROACH. AND SO OUR FIRST ONE WAS PLANNING WHERE REALLY WE GOT TO REALLY JUST UNDERSTAND MORE ABOUT THE CITY STRUCTURE, UNDERSTANDING YOUR KEY STRATEGIC OBJECTIVES. AND ALSO WORKED WITH WHAT WE CALL A RISK ASSESSMENT TEAM. THOSE ARE THE FOLKS THAT ARE HIGHER UP IN MANAGEMENT THAT UNDERSTAND THE INS AND OUTS OF THE CITY, AND SO THAT ABOUT FOUR FOLKS THAT JOINED THAT TEAM, AND WE WORKED WITH THEM TO IDENTIFY WHAT COMES INTO PHASE TWO, WHICH IS REALLY OUR RISK IDENTIFICATION. AND SO THERE WE IDENTIFY WITH THE RELEVANT AND COMPREHENSIVE RISK EVENTS ARE, AND WHAT THOSE RISK CATEGORIES AND RATINGS ARE. SO WE HAVE THOSE IN THE APPENDIX HERE. BUT WHEN YOU'RE EVALUATING RISK YOU LOOK AT NOT JUST YOUR RATING SCALE, WHICH IN OUR CASE WE DO A ONE THROUGH FOUR SCALE. BECAUSE IF YOU'RE AT A THREE, PEOPLE LIKE TO SIT ON THE FENCE. AND SO WE LOOK AT A ONE THROUGH FOUR SCALE. AND THEN WE HAVE FIVE DIFFERENT CATEGORIES THAT BLEND TOGETHER. THE DIFFERENT ELEMENTS THAT WE THINK ABOUT ALL THE TIME WHEN WE'RE LOOKING AT OUR FUNCTIONS. THOSE INCLUDE THINGS LIKE OUR FINANCIAL AND ECONOMIC RISK, OUR IT RISK, REGULATORY AND COMPLIANCE OPERATIONS, AND OUR HUMAN CAPITAL. AND THEN FINALLY CLIENT RELATIONS, CITIZEN RELATIONS, POLITICAL AND REPUTATIONAL RISK. 
          AGAIN, EVERYTHING YOU DO TODAY AND ALL OF WHAT YOU'VE TALKED ABOUT HERE TONIGHT AND COUNCIL, YOU'RE CONTINUING TO THINK ABOUT THE CITIZEN RELATIONS AND THE REPUTATION THAT COMES WITH EVERY DECISION YOU MAKE. AND IT'S NOT JUST YOU. ALL THAT'S ON THE ON THE PODIUM TONIGHT THAT ARE THINKING ABOUT THAT. THAT'S EVERY PERSON IN CITY MANAGEMENT WHEN THEY THINK ABOUT THE DECISIONS AND THE PROCESSES. AND SO WE LOOKED AT THOSE DIFFERENT CATEGORIES AND RATED ONE THROUGH FOUR OF ALL THE DIFFERENT SIGNIFICANT ACTIVITIES. AND SO WE'RE GOING TO TALK A LITTLE BIT MORE ABOUT THAT HERE IN A MINUTE. BUT WE DEVELOPED THAT RISK PROFILE. AND WE STARTED CONDUCTING WORK SESSIONS WITH THAT TEAM TO MAKE SURE WE'RE FULLY ALIGNED. AGAIN, THIS IS A RISK ASSESSMENT FOR THE CITY. AND IN PHASE THREE THAT'S REALLY WHERE ALL THE LEGWORK HAPPENED, WHERE WE HAD FACILITATED SESSIONS WITH MANAGEMENT THROUGHOUT THE CITY TO REALLY EVALUATE EACH ONE OF THOSE SIGNIFICANT PROCESSES AND REALLY TO CONFIRM WHAT IS THE INHERENT RISK. ALSO LOOKING AT RISK MITIGATION FACTORS AND THOSE EFFORTS THAT ARE DONE TO REALLY 
          [03:55:02]
DERIVE TO A RESIDUAL RISK RATING FOR EVERY SINGLE PROCESS. AND WE VALIDATED THOSE RISK RESULTS AS WE WENT THROUGH. AND THEN IN OUR FINAL PHASE OF EVALUATION REPORTING, THAT'S WHERE WE MEET BACK UP WITH OUR RISK ASSESSMENT TEAM, CONFIRM THOSE RATINGS, DETERMINE IS THERE ANY RATING ADJUSTMENTS THAT NEED TO HAPPEN DUE TO OTHER ASSURANCE ACTIVITIES. YOU KNOW, DO WE HAVE OTHER CONSULTANTS THAT COME INTO PLAY? DO WE HAVE SOME NEW POLICIES OR PROCEDURES OR OTHER OPPORTUNITIES TO HELP REDUCE THAT RISK? AND THEN WE ACTUALLY DRAFTED THE RESULTS NOT JUST OF THIS RISK ASSESSMENT, BUT ALSO WHAT A INTERNAL AUDIT PLAN COULD BE. AND WHEN WE TALK ABOUT INTERNAL AUDIT THAT COULD BE ADVISORY CONSULTING TYPE SERVICES. THOSE ARE THINGS THAT COULD ALSO BE DONE INTERNALLY WITH EXISTING CITY STAFF. OR WHERE DO YOU NEED TO BE ABLE TO OUTSOURCE POTENTIAL ASSISTANCE THERE? AND SO WITH THAT APPROACH, WE CAME UP WITH OUR SUMMARY OF OUR RESULTS. AND WHAT I WILL SAY IS THIS IS A SNAPSHOT. AND SO EVERY TIME YOU DO A RISK ASSESSMENT IT'S A POINT IN TIME REFLECTION. SO IT'S LIKE TAKING A PHOTOGRAPH OF WHAT ARE THE RISKS THAT ARE THERE FOR THE CURRENT PROCESSES. AND SO WHEN YOU LOOK AT THIS YOU'LL ALSO AND I WANT TO SHOW WE HAVE RED FOR HIGH ORANGE KIND OF MODERATE YELLOW AND THEN GREEN FOR LOW RISK. NOT TO BE ALARMIST IN THE COLORING WHEN WE REALLY KIND OF THINK IS RED IS OUR HIGHEST PRIORITY, WHERE THOSE ARE THE AREAS WE NEED TO FOCUS ON BECAUSE THERE'S RAPID GROWTH IN THAT AREA OR THERE'S A HEAVY RELIANCE BY CITIZENS AND SO FORTH. FOR EXAMPLE, NUMBER ONE THAT WE HAVE HERE, ENGINEERING AND CAPITAL PROJECT DELIVERY, WE TALKED A LOT ABOUT THOSE TYPES OF THINGS TODAY. IT HAS A LARGE IMPACT THROUGHOUT THE CITY, NOT JUST INTERNALLY WITH STAFF, BUT ALSO TO THE CITIZENS. AND SO WHEN WE LOOK AT THIS AND SAY, YOU'LL SEE THERE'S SIGNIFICANT ACTIVITY ON THE LEFT. SO THOSE ARE ALL THE DIFFERENT PROCESSES WE DO HERE AT THE CITY FROM ENGINEERING AT THE TOP, FROM PAYROLL, REVENUE MANAGEMENT, ETC. THE WAY DOWN TO OUR STRATEGY AND CUSTOMER SERVICE. OUR 311, EACH ONE OF THOSE WERE RISK RATED WITH A FACILITATED SESSION OF KEY LEADERS THROUGHOUT THE CITY TO REALLY UNDERSTAND WHERE DO THOSE RISKS LIE? WHERE DO WE NEED TO HAVE MAYBE ADDITIONAL FOCUS IN OUR CONTROL DESIGN OUR POLICIES, OUR PROCEDURES, OUR SYSTEMS, AND ALSO HOW WE'RE ABLE TO, YOU KNOW, PROGRESS IN THE FUTURE WITH THOSE AREAS? AND SO WHAT THIS GIVES YOU IS THAT SNAPSHOT TO SAY, WELL, WHERE SHOULD WE BE FOCUSING OUR EFFORTS? WHERE SHOULD WE HAVE SOME MORE ASSESSMENT TO MAKE SURE WE'RE NOT JUST EFFICIENT AND EFFECTIVE, BUT WE'RE ALSO COMPLIANT AND WE'RE BEING CONSISTENT. AND SO THOSE ARE AREAS THAT YOU STRIVE FOR EVERY DAY IN YOUR CITY, NO MATTER WHO'S OPERATING THAT AREA. BUT THOSE ARE THE KIND OF THINGS THAT YOU'RE LOOKING FOR. AND THOSE ARE THE KIND OF THINGS THAT WE ASSESSED. AND AGAIN, WHEN YOU TAKE THESE RESULTS AND GIVE THEM TO CITY MANAGEMENT, IT GIVES THEM ALSO A ROADMAP OF AREAS TO CONSIDER THAT, HEY, WE NEED TO SPEND SOME TIME LOOKING AT THIS BECAUSE THOSE HAVE THE GREATEST IMPACT. THIS IS JUST ANOTHER SLIDE OF A VISUAL. AND WHAT I LIKE THIS VISUAL BECAUSE YOU CAN SEE ON THIS PLOTTED MAP WHERE THE RISK LIE AND KIND OF THE NATURAL SEPARATION RIGHT ABOUT WHERE THAT YELLOW LINE IS TO TELL YOU WHERE THE HIGHEST RISK VERSUS MORE THE LOW RISK. AND THIS HELPS BUILD OUT YOUR RISK PROFILE AND MANAGEMENT USING THIS INFORMATION TO HELP, NOT JUST IDENTIFY WHERE TO ADDRESS IN THE FUTURE, BUT ALSO WHAT COULD BE THOSE POTENTIAL SCOPE AND OBJECTIVES IF WE'RE GOING TO EVALUATE AN AREA, YOU KNOW, IF YOU HAVE THINGS LIKE PAYROLL, HOW WE'RE MAKING SURE THAT PAY IS CONSISTENT AND IT'S ACCURATE, NOT JUST PAY, BUT OUR BENEFITS AND HOW THAT IS IN OUR SYSTEM, BECAUSE WE HAVE TO MAKE SURE WE'RE PAYING OUR PEOPLE. AND SO TAKING THIS RISK PROFILE AND BE ABLE TO EVALUATE AND ASSESS THIS THROUGHOUT. AND SO WITH THAT, I'M GOING TO TURN IT OVER TO HOLLY, WHO'S GOING TO BRIEFLY TALK ABOUT WHAT WE SAY IS A RECOMMENDED INTERNAL AUDIT AND ADVISORY PLAN. THESE ARE PLANS THAT CAN REALLY TAKE SOME OF THOSE HIGH RISK AREAS AND ADDRESS INTO CERTAIN TYPES OF PROJECTS THAT ARE GOING TO BE THE MOST BENEFICIAL. SO TAKING THAT VERY HIGH LEVEL AREA AND BREAKING THAT DOWN TO WHAT THAT ENGAGEMENT COULD LOOK LIKE. 
          ALSO, WHAT ARE THE TYPE OF RECOMMENDED OBJECTIVES? SO I'M GONNA TURN IT OVER TO HOLLY WHO'S GOING TO GIVE YOU A LITTLE BIT MORE INFORMATION. THANKS, BRANDON. SO AS SO WE TALKED ABOUT THIS ROBUST RISK ASSESSMENT PROCESS THAT WE DID COLLECTIVELY TOGETHER. AND I WILL SAY WE HAD A VERY ENGAGED LEADERSHIP TEAM. WE DON'T ALWAYS GET ON THE SCENE AND GET THE TYPE OF PARTICIPATION, PARTICIPATION AND ENGAGEMENT THAT WE GOT WITH YOUR TEAM. SO JUST KUDOS TO YOUR MANAGEMENT TEAM. THEY WERE TRANSPARENT, THEY WERE DIRECT, AND THEY REALLY GAVE SOME REALLY GOOD INSIGHT INTO JUST THE NATURAL RISKS THAT YOU GUYS ARE DEALING WITH IN YOUR ENVIRONMENT TODAY. AND SO THESE NEXT COUPLE SLIDES ARE REALLY THE SO WHAT WHAT DOES ALL OF THIS MEAN FOR US? THIS IS REALLY THE OUTCOME OF THE WORK THAT WE DID COLLECTIVELY FOR YOU GUYS. AND I'M NOT GOING TO GO THROUGH ALL THE DETAIL AND MINUTIA OF THE PLAN. YOU GUYS CAN SEE THE RECOMMENDED OBJECTIVES, BUT THERE'S A COUPLE OF THINGS THAT I'D LIKE TO JUST ORIENT YOU TO WHENEVER YOU'RE THINKING THROUGH THESE RECOMMENDATIONS THAT WE'VE 
          [04:00:02]
PROVIDED. AND SO EACH ENGAGEMENT ITSELF DOES LEND ITSELF NATURALLY TO A CERTAIN TYPE OF PROJECT, WHETHER THAT BE INTERNAL AUDIT, WHETHER THAT BE AN ADVISORY PROJECT. AND I'LL TELL YOU, THE WAY WE KIND OF LOOK AT THIS IS IF IT'S A PROCESS AREA SUCH AS PAYROLL, FOR EXAMPLE, WHERE IT'S KIND OF, YOU KNOW, WE'VE HAD PAYROLL FOREVER, RIGHT? WE'VE GOT STRUCTURED PROCESSES IN PLACE. WE KNOW THAT WE HAVE CONTROLS IN PLACE. AND SO AN INTERNAL AUDIT MAY BE BETTER SUITED FOR THAT. AND BECAUSE IT'S A MORE MATURE PROCESS, GENERALLY SPEAKING. AND ALSO WE WOULD ADVISE INTERNAL AUDITS FOR SPECIFIC RISK CONCERNS OR SPECIFIC AREAS WHERE WE KNOW WE HAVE GAPS IN INTERNAL CONTROLS ALREADY. AND SO STRUCTURED APPROACH, VERY TRADITIONAL PROFESSIONAL WAY TO ROLL OUT FINDINGS AND RECOMMENDATIONS. ON THE OTHER HAND ADVISORY PROJECTS ARE MORE WELL, IT'S EITHER SOMETHING THAT WE'VE NEWLY IMPLEMENTED OR IT'S VERY MUCH IN FLIGHT OR THERE'S JUST A LOT GOING ON, LOTS OF ACTIVITY WITHIN THAT PROCESS AREA. AND PERHAPS AN ADVISORY ENGAGEMENT MIGHT BE SOMETHING THAT WOULD BE A LITTLE BIT MORE VALUE ADD, MORE COMPELLING. THE RESULTS MIGHT BE A LITTLE BIT EASIER SOCIALIZED. AND ALSO WE CAN KIND OF HAVE A CONVERSATION ABOUT THE BEST WAY TO PRIORITIZE THOSE RECOMMENDATIONS. AND SO THAT'S KIND OF THE DIFFERENTIATING FACTOR IN THOSE TWO AT A HIGH LEVEL. WE ALSO PROVIDED JUST, YOU KNOW, PROPOSED YEAR PLAN. RIGHT NOW WE HAVE THREE. THIS COULD CERTAINLY CHANGE. THIS IS UP TO YOU GUYS OF COURSE HOW YOU WANT TO IMPLEMENT SOMETHING LIKE THIS. 
          BUT ALSO WE PROVIDED THE LEVEL OF EFFORT AND EXPERTISE AS WELL. AND THAT'S REALLY TO HELP YOU UNDERSTAND NOT ONLY YOUR PRIORITIZATION, BUT WHAT CAN WE DO INTERNALLY AS A TEAM TO ADDRESS SOME OF THESE ENGAGEMENT OBJECTIVES AND RISKS THAT WE IDENTIFIED AS A MANAGEMENT TEAM? OR WHAT DO WE NEED TO OUTSOURCE OR PERHAPS CALL ON OUTSIDE EXTERNAL RESOURCES TO HELP US WITH EVALUATE, YOU KNOW, AND REALLY BRING IN THAT SUBJECT MATTER EXPERTISE THAT PERHAPS WE WOULD BE BETTER SERVED USING OUTSIDE OF THE CITY. AND THEN, OF COURSE, THOSE RECOMMENDED OBJECTIVES. LIKE I SAID, THOSE ARE A STARTING POINT. THEY'RE A THEY'RE A STARTING POINT FOR A CONVERSATION OF WHAT WE WOULD LIKE TO REALLY ACHIEVE WITHIN EACH OF THESE PROPOSED ENGAGEMENTS. PLANNING IS ALWAYS A BIG PART OF ANY PROJECT LIKE THIS, TO ENSURE THAT WHENEVER WE'RE ACTUALLY EXECUTING ON THAT PROJECT, THAT WE'RE BRINGING THE MOST VALUE WITH THE ENGAGEMENT OBJECTIVES. AND I'LL ALSO MENTION THAT, YOU KNOW, IN ADDITION, YOU'RE ALWAYS WANTING TO CONSIDER WHAT IS OUR STRATEGIC PLANNING PROCESS, SAYING WHAT IS WHAT IS THE RESULTS OF OUR ALL THESE ROBUST STRATEGIC PLANNING EFFORTS THAT YOU GUYS HAVE BEEN DOING? AND HOW CAN WE ENSURE THAT OUR ENGAGEMENT OBJECTIVES REALLY CONTINUE TO ALIGN WITH WHAT WE'RE SEEKING TO ACHIEVE IN OUR STRATEGIC PLAN, OUR MASTER PLAN? AND SO AGAIN, IT'S ALWAYS A CONVERSATION ABOUT WHAT'S WHAT ARE THE RISKS THAT WE'RE CONCERNED ABOUT. WHAT ARE THE EMERGING ENVIRONMENT THAT WE'RE OPERATING IN. AND ALSO WHAT DO WE PROMISE OUR RESIDENTS THAT WE WERE GOING TO REALLY ACHIEVE. AND SO WE CONSIDER ALL THESE FACTORS WHENEVER WE'RE THINKING THROUGH OUR ENGAGEMENT OBJECTIVES. AND THEY'RE ALWAYS IN FLIGHT AND THEY'RE A MOVING TARGET. AND SO A GOOD PLANNING PROCESS IN CONVERSATION IS ALWAYS NECESSARY BEFORE BEFORE REALLY DECIDING WHAT THE FINAL SCOPE AND OBJECTIVES OF THE ENGAGEMENT ARE GOING TO BE. AND THE LAST THING I'LL MENTION HERE IS THAT WE ALSO ENDEAVORED TO ENSURE THAT THERE WAS ADEQUATE COVERAGE ACROSS ALL THE DIFFERENT PROCESSES OF THE CITY. AND SO YOU'LL NOTICE WE'RE EVERYTHING FROM LOTS OF YOUR ADMINISTRATIVE PROCESSES AND FINANCIAL PROCESSES TO TECHNOLOGY AND DISASTER RECOVERY, BUSINESS CONTINUITY, INFORMATION SECURITY, TO CITY PLANNING AND DEVELOPMENT. WE TALKED A LOT ABOUT TODAY TO EVEN PUBLIC SAFETY. AND, YOU KNOW, UTILITIES. AND SO IT'S ALL COVERED HERE, YOU KNOW, TO SOME DEGREE. AND OF COURSE THIS IS A SNAPSHOT. AS BRANDON MENTIONED, IT'S A POINT IN TIME SUMMARY AT A HIGH LEVEL OF WHERE WE THOUGHT OUR RISKS NATURALLY WERE, WHERE WE THINK WE HAVE OPPORTUNITIES TO IMPROVE, TAKE ZONE, TAKE IT, ZOOM OUT A LITTLE BIT AND REALLY EVALUATE MORE HOLISTICALLY. YOU KNOW WHAT WE COULD BE DOING BETTER AS A CITY. AND SO I'LL KIND OF FINISH WITH JUST SUMMARY NEXT STEPS. WE'VE TALKED A LOT TODAY ABOUT RISK ASSESSMENT PROCESS. AGAIN IT'S A POINT IN TIME SNAPSHOT. YOU HAVE AN ENGAGED MANAGEMENT TEAM. THEY'RE VERY MUCH WILLING TO HAVE THOSE CONVERSATIONS REGARDING RISK. 
          AND SO WE RECOMMEND PERIODIC TAKE A LOOK AT THIS PERIODICALLY. HAS SOMETHING CHANGED. DOES SOMETHING ON THE SECOND OR THIRD PAGE NEED TO RISE UP TO THE TOP. AND, YOU KNOW, DO THE OBJECTIVES THAT WE NEED TO SEEK IN EACH OF THESE AREAS NEED TO CHANGE. AND SO THAT'S A GOOD CONVERSATION TO HAVE ON A PERIODIC BASIS. AND AS I MENTIONED EARLIER, EACH OF 
          [04:05:04]
THESE PROCESS AREAS LENDS ITSELF TO A PARTICULAR TYPE OF ENGAGEMENT TAILORED TO ADDRESS THE RISK CATEGORIES THAT WE TALKED ABOUT EARLIER, OPERATIONS, TECHNOLOGY, COMPLIANCE, REGULATORY. AND SO IT'S ALWAYS IMPORTANT TO EVALUATE THE ENGAGEMENT OBJECTIVES WITHIN THESE RISK CATEGORIES, AS WELL AS THAT FOUNDATIONAL STRATEGIC PLAN THAT WE HAVE AS A CITY AND PROMISED OUR RESIDENTS THAT WE WOULD ACHIEVE. AND THEN, OF COURSE, CONSIDER THE LEVEL OF EXPERTISE AND EFFORT THAT YOU'RE GOING TO NEED TO RESOURCE THESE ENGAGEMENTS. SOME MAY REQUIRE, YOU KNOW, A LITTLE BIT MORE OF INVESTMENT IN OTHERS. WHERE CAN WE USE INTERNAL RESOURCES AND WHERE CAN WE SUPPLEMENT THAT WITH SUBJECT MATTER EXPERTISE OUTSIDE OF THE CITY. AND SO WITH THAT WE CAN TAKE ANY QUESTIONS WITH YOU FOR YOU GUYS. WELL, IF I COULD JUST QUICKLY TRY TO SUMMARIZE AS WELL. FIRST OF ALL THANK YOU HOLLY AND BRANDON. 
          APPRECIATE YOU BEING HERE. SORRY FOR KEEPING YOU SO LATE. BUT THIS IS A COMPLIMENT TO THE EXTERNAL AUDIT PROCESS. WE HAD A LITTLE BIT OF CONVERSATION ABOUT THIS DURING THE CHARTER REVIEW PROCESS ABOUT WHAT IS AN INTERNAL AUDIT PROGRAM, HOW DOES THAT LOOK? WHAT ARE THE VARIOUS WAYS TO DO IT? THIS IS HOW YOU SET UP AN INTERNAL AUDIT PROGRAM. YOU FIRST START WITH THE RISK ASSESSMENT SO YOU CAN TRULY UNDERSTAND WHERE DO YOU NEED TO FOCUS? WHAT ARE THE TYPES OF ACTIVITIES YOU WANT TO LOOK AT IN A GROWING ORGANIZATION WITH A LOT OF COMPLEXITY? WHAT ARE THE AREAS YOU WANT TO FOCUS ON? LAST YEAR, WE ADDED FUNDS INTO THE BUDGET SO WE COULD DO THESE PERIODIC TYPE OF AUDITS, AND WE HAVE AN ONGOING FUNDING STREAM. I BELIEVE IT'S $150,000 PER YEAR IN THE BUDGET FOR VARIOUS THINGS. SO WE REALLY WANTED TO KNOW WHERE WAS THE RIGHT AREA TO FOCUS ON THAT AND TO MAKE SURE WE HAD THE HIGHEST IMPACT PROJECTS. SO OVER THE NEXT FEW MONTHS, SPECIAL PROJECTS WILL COME FORWARD TO YOU, ONES THAT RISE UP INTO THIS RISK ASSESSMENT, ONES THAT MAKE SENSE. WE'LL BRING THOSE CONTRACTS TO YOU WHEN WE NEED TO, AND YOU'LL SEE THOSE COMING FORWARD. SO AS YOU GO THROUGH THE WHOLE COURSE OF THE YEAR, WE'LL HIT VARIOUS ACTIVITIES. AND THIS PLAN WILL ACTUALLY BE IMPLEMENTED OVER TIME ALONG WITH THE EXTERNAL AUDIT THAT WE DO. SO YOU'LL SEE ALL THOSE THINGS COME TOGETHER. SO WE WANT TO MAKE SURE YOU SAW THAT SINCE YOU SAW THE RISK ASSESSMENT CONTRACT THAT HAD COME TO YOU SOME MONTHS AGO, WE WANTED TO CLOSE THAT LOOP. SO YOU UNDERSTOOD HOW IT WAS GOING TO BE USED. HOPEFULLY. THAT'S HELPFUL. THANK YOU. I KNOW THIS IS NEW CUSTOMER TOBIAS. ALL RIGHT. AGAIN, THANK YOU FOR STAYING LATE. I KNOW IT'S GOING ON 11 SO I'LL BE BRIEF WITH MY QUESTIONS. I'M LOOKING AT YOUR REPORT. AND SO I'M JUST TRYING TO LOOK AND UNDERSTAND HOW YOU HOW YOU MEASURED THE MATRIX ITSELF. SO I'M LIKE LOOKING AT THE ENTITY WIDE ACTIVITIES MAP. AND IT SAYS LIKE YOUR RANKING FROM ONE THROUGH 17, YOU'RE HIGH MATRIX POSITION WAS YOUR CAPITAL ENGINEERING AND PAYROLL AND REVENUE MANAGEMENT DISASTER RECOVERY. SO THEN YOU GOT GRANTS. AND THEN YOU GO ON TO YOUR MODERATE BUDGET AND PLANNING AND SO FORTH. HOW HOW DOES THAT ALL FIT TOGETHER AND HOW DID YOU HOW WERE YOU ABLE TO GET THOSE NUMBERS WHEN YOU DID YOU SPEAK TO EVERY SINGLE DEPARTMENT TO KIND OF SEE WHERE WE'RE AT. AND THEN THAT WAY YOU MADE YOUR EVALUATION TO SAY FOR THE CITY. KYLE, SOME OF YOUR HIGHEST MATRIX IS IN THE ENGINEERING, I GUESS MAYBE BECAUSE OF IT'S BECAUSE OF OUR CAPITAL PROJECTS. CORRECT. RIGHT. AND YEAH. AND SO HOW THIS HOW WE GET TO THE NUMBERS THEMSELVES. WE HAVE A ONE THROUGH FOUR SCALE. IF YOU LOOK IN THE REPORT IN THE BACK YOU CAN ACTUALLY SEE WHAT THAT SCALE LOOKS LIKE. WE ALSO HAVE WHERE'S THE CLICKER. SO I'M GOING TO JUMP TO THE APPENDIX REAL QUICK BECAUSE WE DO SHOW WHAT THAT SCALE LOOKS LIKE. SO I'M GOING TO GO HERE. SO YOU HAVE A ONE THROUGH FOUR SCALE. AND SO WHEN WE HAVE WHAT WE CALL THE FACILITATED SESSION. THE FACILITATED SESSION IS A WE HAVE KEY REPRESENTATIVES FROM EVERY DEPARTMENT OR, YOU KNOW, LEADERSHIP THAT REPRESENTS ALL ASPECTS OF THE CITY. THEY'RE INVITED FOR THIS SESSION. IT'S ABOUT FOUR HOURS WHERE WE SIT DOWN AND WE SIT IN A, YOU KNOW, KIND OF OPEN SETTING LIKE THIS, ALL FACING EACH OTHER. AND WE TALK THROUGH EACH ONE OF THESE PROCESS AREAS AND SAY, YOU HAVE THE SCALE OF 1 TO 4. WE ALSO HAVE THE RISK CATEGORIES. AND WE SIT DOWN AND SAY, OKAY, WE'RE GOING TO START WITH, LET'S SAY ENGINEERING. WHEN WE THINK OF ENGINEERING AND CAPITAL PROJECTS AND WE THINK OF FINANCIAL AND ECONOMIC RISK, WHERE DO YOU THINK THE PROBABILITY AND IMPACT IS ON THAT RISK AREA FOR THAT PROCESS AREA. AND EACH PEOPLE START GOING AROUND THE ROOM AND START TALKING ABOUT THAT. USUALLY IT KICKS OFF WITH THE PERSON THAT'S OVER THAT. SO MANAGEMENT OR DIRECTOR THAT'S OVER THAT AREA. AND THEN PEOPLE THAT HAVE EXPERIENCE WITH THAT AREA MAY ALSO CHIME IN AND SAY, YEAH, DO I AGREE WITH THAT? DISAGREE. SO IT IS A TIME CONSUMING PROCESS BUT VERY FRUITFUL BECAUSE AGAIN, IT'S NOT WEAVER SAYING THIS IS HIGH RISK. WE HEAR FROM THE DIFFERENT ASPECTS OF THE LEADERS OF THE 
          [04:10:02]
CITY THAT TALK ABOUT, YES, IT'S THIS AND WHY WE THINK IT'S THAT, AND YOU HAVE THE BOOTS ON THE GROUND TO SAY NO, NOT JUST QUITE YET. THIS IS REALLY GOES ON IN THE FIELD AND THERE'S CHANGES THAT HAPPEN. RIGHT. IT'D BE LIKE, WELL, I REALLY THINK THIS IS A THREE OR A 4 OR 2. AND THEN WE'LL ASK, WELL, WHY DO YOU THINK IT'S THAT RATING? AND SO YOU HAVE SOME REALLY GOOD CONVERSATION. BUT AGAIN, IT'S THE CITY THAT YOU GET CONFIRMATION FROM THE LEADERS BEFORE WE MOVE ON TO THE NEXT ONE, THAT YES, I AGREE WITH THOSE RATINGS. AND THAT IS A REFLECTIVE. AND SO THAT IS A AGREED UPON BY THOSE LEADERS OF WHAT THE RISK RATING IS FOR EACH ONE OF THOSE PROCESS AREAS. OKAY. SO HOW DOES THAT HELP BRIAN, FOR YOU WITH THESE NUMBERS THAT YOU SEE I GUESS IT DOES IT HELP WHEN YOU WHEN IT COMES TO YOUR MANAGEMENT TEAM, TO WHERE YOU CAN START ASSESSING WHERE THE HIGHER RISKS ARE OR WHERE THE NEEDS ARE IN A SENSE OF PLANNING AND STRATEGIC AND FUNDING AND SO FORTH. BECAUSE LIKE I SEE ANIMAL SERVICES LOW, BUT YOU ALSO HAVE THE POLICE PUBLIC SAFETY AT NUMBER 11 AT HIGH. SO YEAH. SO WHAT WE'RE GOING TO LOOK AT IS THE HIGH PROBABILITY, HIGH IMPACT AREAS OF OUR ORGANIZATION AND OF THE, THE CITY AND WHAT WE'RE DOING AS A TEAM. AND THOSE ARE THE AREAS WE WANT TO SPEND MORE TIME ON TO MAKE SURE. HAVE WE REVIEWED THOSE PROCESSES? HAVE WE DONE AN INTERNAL AUDIT ON A CERTAIN ASPECT OF THAT OPERATION? HAVE WE HAD AN OVERTIME AUDIT ON PAYROLL? HAVE WE LOOKED AT THOSE THINGS? WHAT WOULD BE THE INDIVIDUAL AREAS THAT YOU WOULD WANT TO MAKE SURE THAT PROACTIVELY, NOT BECAUSE WE'VE IDENTIFIED A PROBLEM, BUT WE WANT TO MAKE SURE THERE'S NOT A PROBLEM. WE WANT TO MAKE SURE WE'RE DOING EVERYTHING WE CAN TO MANAGE ALL THOSE COSTS. HOW ARE YOU MANAGING IT? AND JUST IN THE ENGINEERING AND CAPITAL PROJECT DELIVERY, YOU JUST SAW THAT FROM PERVEZ. $1.3 BILLION OF FUNDING IS GOING TO BE TIED UP IN THAT OVER THE NEXT FIVE YEARS. SO THERE'S A LOT OF CONTRACTS, THERE'S A LOT OF PROCESSES AROUND THAT, AND THERE'S A LOT OF RISK BECAUSE THE DOLLARS THAT ARE INVOLVED, THAT'S WHAT HELPS US DETERMINE IT'S AN ACTIVITY THAT'S WORTHY OF OUR TIME THAT REALLY MAKES SENSE TO LOOK AT AND THEN HELPS US HONE IN ON HOW HOW DO YOU HOW DO YOU LOOK AT THAT CAREFULLY. SO IT'S BETTER THAN JUST KIND OF LIKE, LET'S GET EVERYBODY TOGETHER AND SAY, YOU KNOW, TIM, WHAT DO YOU THINK ABOUT THIS? AND WHAT DO YOU THINK ABOUT THAT? HOW ARE THINGS GOING? GOOD. BUT YOU CAN ACTUALLY BREAK IT DOWN PER DEPARTMENT AND SAY THESE ARE WHERE OUR THIS IS OUR STRATEGY. THIS IS OUR GOALS. AND IT HELPS OUR CITY GROW A LOT BETTER. YES, SIR. BECOME MORE PROFESSIONAL. HOW TO MANAGE A LARGE AND GROWING ORGANIZATION 500 EMPLOYEES, $600 MILLION BUDGET A LOT OF PIECES. HOW DO YOU PROACTIVELY MANAGE THAT IN A WAY THAT THAT HELPS THE ORGANIZATION, HELPS THE COUNCIL, HELPS THE CITY MOVE FORWARD. OKAY. THANK YOU I APPRECIATE IT. THANK YOU MA'AM. THANK YOU. SO I WANT TO EMPHASIZE THE SCORES DO NOT MEAN THAT WE ARE NOT ADDRESSING THE RISK. IT JUST MEANS THAT IT'S AN AREA OF THE BUSINESS THAT CAN BE ASSOCIATED WITH HIGH RISK. CORRECT? IT DOESN'T MEAN THAT WE'RE IGNORING IT. NO, IT'S THAT'S RIGHT. AND I KNOW THE COLOR IS RED ARE ALWAYS ALWAYS SCARY. OH MY GOSH. EVERYTHING'S GREEN. BUT IT MEANS IT'S AN AREA THAT YOU YOU NEED TO MAKE SURE YOU'RE BEING CAREFUL WITH THAT YOU THAT YOU HAVE ALL THE GOOD REVIEWS AND PROCESSES ON THAT YOU'RE CAREFULLY PLANNING THOSE. AND THAT'S IT HELPS US MANAGE OUR RESOURCES TO MAKE SURE WE'RE LOOKING AT IT CAREFULLY. SO HOPEFULLY THAT MAKES MAKES SENSE. ANYONE ELSE WE'LL BRING THESE BACK TO YOU AS WE SEE THEM. WE'LL KEEP YOU INFORMED AS WE GO THROUGH THIS. BUT WE WANT TO MAKE SURE WE BROUGHT IT TO YOU. WELL, I REALLY LIKE THE PROACTIVE ELEMENT, THE WAY YOU'RE EXPLAINING THAT, BECAUSE THESE ARE THE KIND OF THINGS THAT LIKE RISK IS SOMETHING YOU DON'T THINK ABOUT UNTIL LIKE WHEN THERE'S A PROBLEM, THE PROBLEM IS DEVASTATING, LIKE TO A CITY. SO IT'S IMPORTANT WORK AND IT'S KIND OF NEAT, HONESTLY. 
          YOU KNOW, I THINK ABOUT ALL THE YEARS PAST, YOU KNOW, WE WERE NEVER WE WERE NEVER ABLE TO GET TO THIS KIND OF LEVEL. SO THANK YOU, BRIAN. THANK YOU GUYS ALL FOR THE WAY THAT YOU'RE MAKING US STRONGER. I MEAN, THIS IS LIKE A THIS MAKES ME THINK OF, YOU KNOW, WE'RE ON OUR WE'RE ON A PATH TO BEING MORE RESILIENT AS A CITY, EVEN THROUGH THE MINUTIA. YOU KNOW, I LIKE TO TALK ABOUT SPORTS PLEXES. BUT LIKE, THIS IS THIS IS SUPER IMPORTANT. THIS HELPS. THIS HELPS US FIND OUR STRENGTHS AND WEAKNESSES. CORRECT. IS THAT WHAT IT IS AS WELL? AND OPPORTUNITIES FOR JUST MATURITY OF THE ORGANIZATION? OKAY. LOOKING AT IT THROUGH A LOT OF DIFFERENT THINGS. WELL THANK YOU VERY MUCH. APPRECIATE IT. THANK YOU ALL SO MUCH. WE APPRECIATE THE CITY BRINGING US ON TO DO THIS PROJECT. SO THANK YOU ALL VERY MUCH. ALL RIGHT. I'VE GOT PERMISSION TO POSTPONE THIS NEXT ONE TILL THE, THE SECOND AND THEN WE CAN JUST GO TO THE 
          [33) Receive a report, hold a discussion, and provide staff feedback regarding the recommended operating and capital budget totaling $603,537,633 proposed for all City funds for Fiscal Year 2025-26 as presented to the City Council during the special-called meeting held on July 26, 2025.]
BUDGET IF THAT'S OKAY WITH COUNCIL. ALL RIGHT. WE'RE GOING TO JUST GO TO THE, THE BUDGET ITEM 33. RECEIVE A REPORT, HOLD DISCUSSION, PROVIDE STAFF FEEDBACK REGARDING THE 
          [04:15:03]
RECOMMENDED OPERATING CAPITAL BUDGET TOTALING $603,537,633 PROPOSED FOR ALL CITY FUNDS FOR FISCAL YEAR 2526 IS PRESENTED TO THE COUNCIL ON JULY 26TH. MR. AND COUNCIL AT THE LAST COUNCIL MEETING, THERE WERE FOUR QUESTIONS RAISED BY COUNCIL THAT REQUIRED STAFF TO BRING BACK INFORMATION. SO TODAY'S MEETING WE WILL PROVIDE THE ANSWERS TO THOSE FOUR QUESTIONS AND THEN SEE IF YOU ALL HAVE ANY ADDITIONAL QUESTIONS. SO THE FOUR QUESTIONS WERE WHAT IS THE FUNDING FOR HAYS COUNTY FOOD BANK IN THE PROPOSED BUDGET? WHAT IS THE FUNDING FOR HAYS CALDWELL WOMEN'S CENTER AND THE PROPOSED BUDGET? THEN? COUNCIL IS INTERESTED IN OBTAINING MORE INFORMATION ON THE K9 PROGRAM AS PROPOSED BY POLICE DEPARTMENT AND ALSO THE DRONE PROGRAM AS PROPOSED BY POLICE DEPARTMENT. SO THOSE WERE THE FOUR AREAS OF QUESTIONS OR INFORMATION THAT COUNCIL HAD REQUESTED STAFF TO BRING BACK. SO I WILL ANSWER YOUR QUESTIONS ONE AND TWO. AND THEN WE HAVE CHIEF BARNETT PRESENTATION THAT WILL ADDRESS THE OTHER TWO. SO THE FUNDING INCLUDED IN THE PROPOSED BUDGET FOR HAYS COUNTY FOOD BANK IN THE 2526 BUDGET IS $15,000. SHOULD THE COUNCIL BE INTERESTED OR CONSIDER CHANGING THAT AMOUNT UP OR DOWN? STAFF RECOMMENDS THAT WE DO IT IN THE FORM OF A MOTION TO AMEND THE PROPOSED BUDGET ON SEPTEMBER 2ND. WE'RE NOT POSTED FOR ANY AMENDMENTS TONIGHT, BUT ON SEPTEMBER 2ND, CITY COUNCIL CAN, WITH THE MOTION, AMEND THE PROPOSED BUDGET. THE SECOND QUESTION WAS FUNDING FOR THE HAYS CALDWELL WOMEN'S CENTER. 
          THERE'S $15,000 PROVIDED IN THE PROPOSED BUDGET FOR NEXT YEAR. SAME THING HERE. IF THE COUNCIL WOULD LIKE TO CONSIDER INCREASING OR DECREASING, STAFF RECOMMENDS THAT WE DO IT IN THE FORM OF A BUDGET AMENDMENT ON SEPTEMBER 2ND FROM THE DYESS. AND WITH THAT, I'M GOING TO ASK POLICE CHIEF BARNETT TO COME UP AND ADDRESS K9 AND THE DRONE QUESTIONS THAT YOU ALL HAD. 
          THERE YOU ARE. ALL RIGHT. GOOD EVENING, MAYOR AND COUNCIL. JEFF BARNETT, CHIEF OF POLICE. FOR THE RECORD, I UNDERSTAND THAT THERE WERE TWO ITEMS OF IMPORTANCE FROM THE POLICE PROPOSED BUDGET THAT WE WANTED TO DO A LITTLE BIT MORE IN DEPTH DISCUSSION. THOSE TWO PROGRAMS WERE THE POLICE K9 PROGRAM, AND THEN THE POLICE DRONE PROGRAM. AS PERVEZ MENTIONED, YOU SEE THE FUNDED AMOUNT REQUESTED IN THIS YEAR'S BUDGET FOR YOUR CONSIDERATION THAT WOULD COVER THE FULL AMOUNTS OF THE PROGRAMS AS THEY'VE BEEN PROPOSED BY THE CITY MANAGER IN HIS BUDGET. I'M GOING TO PROVIDE A LITTLE BIT OF INFORMATION. HOPEFULLY I ADDRESS MOST OF THE QUESTIONS, BUT I'M CERTAINLY ANTICIPATING SOME AT THE END. THE POLICE K9 PROGRAM I'VE BEEN ASKED, WHAT IS THE PURPOSE? WHAT ARE WE GOING TO DO WITH IT? HOW ARE WE GOING TO UTILIZE IT? WE INTEND TO HAVE A MULTI-PURPOSE, TRAINED POLICE DOG THAT WOULD BE ASSIGNED TO ONE POLICE OFFICER THAT BASICALLY LIVES WITH THAT OFFICER DAY AND NIGHT. THEY PERFORM PATROL RELATED SERVICES. 
          THAT MEANS THEY MAY BE OUT IN THE COMMUNITY EITHER ASSISTING THE ON DUTY PATROL PERSONNEL, WHETHER THEY'RE LOOKING FOR A PERSON WHO HAS FLED FROM OFFICERS, MAYBE THEY'RE HIDING, MAYBE THEY'RE LOST. THIS AFTERNOON, WHILE WE'VE BEEN IN THIS COUNCIL MEETING, OFFICERS SPENT A GOOD AMOUNT OF TIME JUST BEFORE DARK LOOKING FOR A 13 YEAR OLD LOST CHILD THAT WAS OUT IN THE WOODS. THAT ALSO HAS SOME CONDITIONS THAT MADE US CONCERNED FOR HIS SAFETY. WE CAN UTILIZE CANINES ALSO FOR THOSE INDIVIDUALS THAT HAVE WANDERED OFF OR LOST, OR THAT WE NEED TO TRY TO FIND. ALSO, WE ANTICIPATE CROSS TRAINING THIS DOG FOR THE PURPOSE OF FINDING EVIDENCE. 
          GENERALLY THAT'S ILLEGAL DRUGS, BUT THEY CAN ALSO SOMETIMES ADD WEAPONS AND STUFF. THEY CAN DETECT GUNPOWDER AND WHATNOT. BUT WE INTEND TO USE IT FOR WHAT WE IN LAW ENFORCEMENT JUST CALL PATROL OPERATIONS. SO THAT'S CONDUCTING SEARCHES, LOOKING FOR PEOPLE OR THINGS AND WOULD BE ASSIGNED TO ONE POLICE OFFICER WITH THE FUNDING THAT WE'VE REQUESTED. THAT FITS WITH THE CITY MANAGER'S BUDGET. AND THE TIMELINESS OF THAT POSITION ALSO INCLUDES ALL OF THE EQUIPMENT, VETERINARIAN SERVICES, FOOD, TRAINING, SUPPLIES. THE DOG WOULD GO THROUGH AN OFFICIAL CERTIFICATION PROCESS SO THAT YOU HAVE A DOG THAT MEETS ALL THE STANDARDS ACROSS THE NATION FOR POLICE SERVICE DOGS. THINGS THAT WE'RE GOING TO USE THAT DOG FOR. AS I MENTIONED, OVER THE 
          [04:20:01]
YEARS, WE'VE HAD MULTIPLE PEOPLE THAT HAVE FLED FROM LAW ENFORCEMENT OFFICERS, FLED INTO THE WOODS, FLED INTO BUILDINGS AND SIMILAR TYPE SITUATIONS, AND THE K-9 WOULD BE BROUGHT OUT TO HELP TRACK THAT. WE DO, ON OCCASION, CALL FOR OTHER AGENCIES TO LEND US THEIR OFFICER AND THEIR K9. OUR NEIGHBORS TO THE NORTH, AUSTIN AND THEN SAN MARCOS AND HAYS COUNTY HAVE CANINES. A COUPLE OF THINGS ABOUT THAT. NUMBER ONE, WHEN WE PUT THAT CALL IN, WE'RE ASKING THEM TO GIVE UP THEIR PERSONNEL AND FOR THEM TO PAY THAT OVERTIME AND THE CALL OUT PAY, AND THEY FOOT THAT BILL FOR THE CITY OF KYLE. SECONDLY, THEY HAVE TO DETERMINE WHETHER THEIR K-9 OFFICER IS AVAILABLE AND IS IT TO THEIR INTEREST TO CALL THAT K-9 OFFICER OUT TO COME ASSIST A NEARBY AGENCY? WHAT ARE THEIR DUTIES AND EXPECTATIONS? AND THEY'RE NOT ALWAYS AVAILABLE, BUT WE DO CALL THEM WHEN WE HAVE THAT NEED. K-9 CAN ALSO ASSIST WITH BUILDING SEARCHES AS WELL AS OUTDOOR SEARCHES. SO IT'S KIND OF MULTI-PURPOSE AND MULTI DIMENSIONAL. WE TALKED ABOUT THE MISSING CHILDREN. CERTAINLY IT WOULD BE TRAINED IN THE AREA OF DRUG FINDING. ONE OF THE MOST IMPORTANT ONES TO HEAR IN OUR COMMUNITY. THEY'RE ALL IMPORTANT, BUT ONE OF THE MOST THAT WE'VE ALL BEEN IMPACTED BY OVER THE LAST SEVERAL YEARS IS FENTANYL. AND YOU CAN TRAIN POLICE, POLICE DOGS TO HELP FIND FENTANYL AND SIMILARLY RELATED DRUGS, AS WELL AS HUMAN SMUGGLING AND TRAFFICKING. WHEN PEOPLE ARE HIDDEN WITHIN VEHICLES AND HOMES AND OTHER PLACES WHERE WE'RE LOOKING FOR PEOPLE THAT MAY BE VICTIMS OF CRIME, THEY CAN CERTAINLY HELP FIND THOSE INDIVIDUALS AS WELL. THE SECOND ITEM THAT YOU SAW ON THE LIST WAS THE POLICE DRONE. AS A FIRST RESPONDER PROGRAM, WE WOULD BE ONE OF THE FIRST OR ONE OF THE EARLY ADOPTERS OF THAT TECHNOLOGY HERE IN THE CITY OF KYLE OR IN THE STATE OF TEXAS. 
          WHAT WE WHAT YOU WOULD ENVISION THERE IS A DRONE PROGRAM THAT WOULD LAUNCH BASED ON THE TYPE OF CALL FOR SERVICE IN THE COMMUNITY, WOULD RESPOND IMMEDIATELY TO THAT SCENE, HOVER OVER THE SCENE AND PROVIDE LIVE VIDEO BACK INTO THE REAL TIME CRIME CENTER TO THE POLICE SUPERVISORS ON DUTY AND THE OFFICERS AS NEEDED AS THEY RESPOND TO THE CALL. BUT IT PROVIDES REAL TIME INFORMATION SO THAT THEY CAN ASSESS THE SITUATION AND MAKE THE BEST AND SAFEST RESPONSE, AND THEN ADDRESS THAT SITUATION AS BEST THEY CAN WITH ALL OF THE INFORMATION THAT MAY BE POTENTIALLY AVAILABLE. IT WILL ALSO BE USED FOR POTENTIALLY WILDFIRES IN THE COMMUNITY. IT'S NOT JUST PARTICULARLY LAW ENFORCEMENT, BUT IT COULD BE MORE ABOUT SEARCH AND RESCUE OR FIRES IN THE COMMUNITY. CERTAINLY, ACCIDENTS ON INTERSTATE 35 WOULD BE SOMETHING WE WOULD WANT TO USE THIS DRONE FOR SO THAT OFFICERS CAN UNDERSTAND EXACTLY WHERE THE ACCIDENT IS. AND THEN WE GET A LOT OF CALLS ON ACCIDENTS. 
          SOMETIMES THAT INFORMATION ISN'T THE BEST. SO THIS DRONE COULD PROVIDE US WITH SOME REAL TIME INFORMATION AS TO WHETHER IT'S MULTIPLE VEHICLES OR THEIR HAZARDOUS MATERIALS INVOLVED. IS THERE A PARTICULAR BETTER APPROACH SO THAT WE CAN MANEUVER TRAFFIC AROUND THAT LOCATION? BUT WE THINK ALL OF THAT INFORMATION PROVIDED BY THE DRONE WOULD WOULD HELP KEEP OUR OFFICERS SAFER FOR CERTAIN AND THEN BETTER RESPOND TO THAT SITUATION. WE HAVE IN THE BUDGET REQUEST, $150,000 THAT WOULD PROVIDE. AND YOU SEE, I HAVE A1-4 ON HERE. WE WOULD CURRENTLY PLAN TO MOVE FORWARD WITH ONE PARTICULAR DRONE THAT KIND OF SERVES, AS YOU CAN EITHER GET UP TO FOUR SMALLER DRONES OR YOU CAN GET THIS ONE DRONE AND IT IT COVERS REALLY THE SAME AREA AND HAS SOME REALLY GOOD FEATURES. BUT I WANTED TO LEAVE THAT OPEN AS WE EVALUATE THE PLANS, AS WE MOVE FORWARD, WHATEVER WOULD FIT. BUT WE WANT TO MAKE SURE THAT WE PROVIDE THE BEST SERVICE COVERAGE AREA FOR THE COMMUNITY. I DO WANT TO SHARE SOME REALLY GOOD NEWS WITH YOU TONIGHT. 
          SEVERAL MONTHS AGO, WE CAME BEFORE YOU AS A COUNCIL AND ASKED PERMISSION TO APPLY FOR AND ACCEPT A GRANT. FROM MVPA, WHICH THEY GET THEIR MONEY COLLECTED THROUGH THE STATE. AND THEN IT'S USED TO HELP DETER AUTO THEFTS IN THE STATE OF TEXAS, AS WELL AS CATALYTIC CONVERTER THEFTS. YOU MAY REMEMBER SEVERAL YEARS AGO WHEN THAT WAS WHEN THE VALUE OF A CATALYTIC CONVERTER WAS VERY HIGH AND THE THEFTS WERE RAMPANT ACROSS THE STATE. THE STATE ALLOCATED MONEY TO THIS PARTICULAR GRANT PROGRAM, AND WITH YOUR PERMISSION, WE APPLIED FOR THAT GRANT AND WE'VE RECEIVED FUNDING TO PROVIDE THAT SECOND DRONE THAT WE HAD TALKED ABOUT. WE HAD TALKED ABOUT MAYBE ONE WILL NOT COVER 100% OF THE CITY. WHAT ARE WE GOING TO DO WHEN WE HAVE TWO EMERGENCIES AT THE SAME TIME IN THE COMMUNITY? HOW ARE WE GOING TO PRIORITIZE THIS GRANT AWARD THAT YOU ALLOWED US TO APPLY FOR IS ACTUALLY GOING TO BE ABLE TO SUPPLY US EITHER THE SECOND DRONE, THE SECOND LARGE DRONE, OR PERHAPS 2 OR 3 SMALLER ONES. 
          BUT I'M HAPPY TO TELL YOU THAT WE DID GET NOTIFICATION THE OTHER DAY THAT WE DID RECEIVE THAT GRANT AWARD. WE DO ALREADY HAVE SEVERAL KPD TRAINED POLICE OFFICERS AND STAFF MEMBERS THAT ARE PILOTS. WE HAVE A DRONE PILOT INSTRUCTOR THAT WORKS FOR US BECAUSE OF HER EXTENSIVE 
          [04:25:04]
DRONE EXPERIENCE, PARTICULARLY IN THE MILITARY, AND WE ARE HOSTING YET ANOTHER DRONE TRAINING CLASS AT THE POLICE DEPARTMENT NEXT WEEK. SO WE'RE CONSTANTLY TRAINING NEW DRONE PILOTS. WE WOULD HAVE A DRONE PILOT THAT WOULD BE. THE OVERWATCH FOR THE DRONE THAT'S IN FLIGHT. IT WILL ONLY FLY WHEN WE HAVE A DRONE PILOT. THAT CAN BE THAT. ALTHOUGH IT'S AN AUTOMATED SYSTEM, IT'S STILL GOING TO TAKE A PILOT TO BE IN CHARGE, TO MAKE DECISIONS SHOULD THEY NEED TO BE MADE. THE DRONE PROGRAM COMES WITH A RADAR SYSTEM THAT WILL THAT WILL MAKE IT SAFE, BUT IN BEST PRACTICES REQUIRES A DRONE PILOT TO BE ABLE TO MANEUVER IT. AND IF A SUSPECT OR SOMEBODY WERE TO FLEE A SCENE OR THE MISSING PERSON THAT IT'S TRACKING MOVES, WE MIGHT NEED SOMEBODY TO MAKE THOSE DECISIONS AND DIRECT THE DRONE WHERE WE NEED IT TO GO. 
          AND, YOU KNOW, WE'VE WE'VE IMPLEMENTED OUR REAL TIME CRIME CENTER AT THE POLICE DEPARTMENT, AND WE'VE HAD TREMENDOUS SUCCESS WITH THAT PROGRAM. AND THAT'S WHERE THIS IS GOING TO FIT INTO THE OPERATIONS. YES, IT'S GOING TO SERVE THOSE FOLKS THAT ARE OUT IN THE FIELD SERVING. BUT IT'S OUR REAL TIME CRIME CENTER THAT'S REALLY MAKING ALL OF THIS COME TO FRUITION. ONE OF THE MOST IMPORTANT QUESTIONS THAT YOU MAY HAVE IS, WELL, WHERE DOES THIS WHERE DOES THIS DATA GET STORED? WHERE DOES THE VIDEO GET STORED? WHO HAS ACCESS TO IT? BOTH TWO OF THE MAJOR BRANDS OF DRONES THAT ARE OUT THERE THAT LAW ENFORCEMENT USE ARE EITHER A FLOCK BRAND DRONE OR AN AXON BRAND DRONE. AXON YOU MAY BE FAMILIAR WITH, WHICH IS OUR OUR BODY CAMERAS. AND BOTH OF THOSE TWO SERVICES USE, I'M GOING TO CALL IT THE ABSOLUTE PREMIER LAW ENFORCEMENT STORAGE. 
          THEY USE MICROSOFT OR AXON USES THE MICROSOFT AZURE CLOUD BASED STORAGE. AND THEN FLOCK USES THE AMAZON WEB SERVICES, THE AWS CLOUD BASED SERVICES, THE S3. IN FACT, I'LL TELL YOU A LITTLE BIT ABOUT THOSE. THAT'S WHERE YOUR CRIMINAL JUSTICE INFORMATION IS ALREADY STORED. ALL OF THE DATA THAT THE FEDERAL GOVERNMENT'S KEEPING IS FOR YOUR YOUR CRIMINAL HISTORY STUFF. THEY ARE STORED ON THESE TWO SERVERS AND THEY'RE TRANSMITTED ON THESE SERVERS. BOTH OF THOSE ARE TOP TIER STORAGE, APPROVED STORAGE SYSTEMS FOR LAW ENFORCEMENT RECORDS. THEY'RE APPROVED BY THE DOD, BY THE FBI, DEPARTMENT OF JUSTICE. THEY ALL USE THESE CLOUD BASED SYSTEMS. AND THEY'RE SO THEY'RE APPROVED, AND THEY HAVE ALL OF THE ENCRYPTION SERVICES THAT YOU WOULD WANT END TO END ENCRYPTION. SO IT'S IF IT'S GRABBED SOMEHOW IN THE MIDDLE, YOU COULDN'T DO ANYTHING WITH THE DATA ANYWAY BECAUSE IT'S ALL ENCRYPTED FROM END TO END USER. FOR BOTH OF THOSE, I'LL GET WAY ABOVE MY MYSELF ON THE TECHNOLOGICAL ASPECTS, OTHER THAN I KNOW THAT IT'S APPROVED FOR DOD DEPARTMENT OF JUSTICE AS WELL, AND IT'S JUST COMPLIANT, WHICH YOU'LL HEAR ME MENTION THAT A LOT. C JUST COMPLIANCE. IT'S ONE OF OUR STRICTEST RULES THAT WE HAVE AT THE POLICE DEPARTMENT ABOUT WHO CAN ACCESS THE BUILDING, WHO CAN GET IN THE CARS, HOW DO WE TREAT OUR COMPUTERS. MULTI FACTOR AUTHENTICATION IS REQUIRED FOR OUR DEVICES THAT WE HAVE. AND THESE TWO STORAGE SERVICES THAT ARE USED BY LAW ENFORCEMENT AGENCIES ACROSS THE COUNTRY, INCLUDING THE FEDERAL GOVERNMENT, IS WHERE WE WOULD STORE OUR VIDEO. JUST LIKE IF YOU ASKED ME WHERE IS YOUR VIDEO STORED FROM YOUR BODY CAMERAS THAT IS STORED ON THESE CLOUD BASED SYSTEMS? AND THIS IS WHERE THE VIDEO FROM THE DRONE PROGRAM WOULD ALSO BE STORED. IT WOULD BE STORED IN THE AXON OR FLOCK OR ACTUALLY, I GUESS I'LL JUST SAY THE MICROSOFT AZURE OR THE AWS SERVER SYSTEM THAT WE ALREADY USE FOR CRIMINAL JUSTICE INFORMATION. RETENTION PROGRAMS. I THINK I MENTIONED THAT A LITTLE BIT LAST TIME, BUT I'LL JUST REMIND YOU THAT DATA RETENTION FOR. VIDEOS THAT WE KEEP IS 30 DAYS. WE KEEP IT FOR 30 DAYS UNLESS IT IS NEEDED FOR CRIMINAL TRIAL. AND THEN WE HAVE TO GO BY THE RETENTION REQUIREMENTS AS SET FORTH BY THE STATE OF TEXAS OR BY THE EVIDENTIARY RULES. SO IF YOU HAVE A VIDEO OF A SUSPECT THAT'S ARRESTED FOR AN ARMED ROBBERY, THAT VIDEO IS GOING TO BE WITH US UNTIL THAT COURT, THAT COURT CASE HAS GONE TO COURT, ALL THE APPEALS HAVE BEEN FINALIZED AND WE MEET ANY RETENTION REQUIREMENTS THERE. BUT IF IT'S GENERAL VIDEO, MAYBE TO GO TO A CAR ACCIDENT AND PROVIDE BETTER INSIGHT ON THAT SCENE, NO CRIMINAL CHARGES ARE FILED, BUT IT WAS USED IN THE RESPONSE 31 DAYS LATER AND THAT THAT VIDEO WILL BE DELETED FROM THE FROM THE SERVER. THERE'S A LOT OF INFORMATION I PUT IN HERE ABOUT FEDRAMP HIGH. THAT'S ANOTHER IT'S ALL THE FEDERAL AGENCIES AND HOW THEY APPROVE COMPUTER SYSTEMS TO BE USED FOR, WHETHER IT BE CLASSIFIED OR SECRET OR TOP SECRET INFORMATION. THIS DOESN'T RISE TO THAT LEVEL EVEN. AND THEY ARE USING THESE TWO STORAGE SERVER STORAGE SYSTEMS FOR THOSE LEVELS. AND THEY HAVE CERTIFICATION REQUIREMENTS. AND THESE MEET THOSE. AND IF THEY MEET THOSE, THEN THE SECURITY REQUIREMENT IS HIGHER THAN WHAT EVEN WE HAVE TO HAVE FOR SIEGES. THEN HOPEFULLY THAT HOPEFULLY THAT HELPS YOU REST COMFORTABLY, THAT THIS IS SOME OF THE MOST SECURE STORAGE LOCATIONS THAT WE HAVE TO OFFER FOR LAW 
          [04:30:02]
ENFORCEMENT. AND THEN CERTAINLY WE HAVE ACCESS CONTROL REQUIREMENTS LIKE WE DO FOR OUR BUILDING AND OUR CARS AND EVERYTHING ELSE THAT WE TOUCH WITH OUR POLICE COMPUTERS. AND WITH THAT SAID, I'LL PAUSE AND ANTICIPATE SOME QUESTIONS AND DO MY BEST TO ANSWER THOSE FOR YOU, MAYOR. CUSTOMER QUESTION. YEAH. STARTING OFF CHIEF, WITH THE K-9, I'M GOING TO START WITH THE K-9 FIRST. YOU KNOW, I THANK YOU FOR THE UPDATE ON THAT. I WAS WONDERING WHAT KIND OF K-9 WE WERE GOING TO PURCHASE. WHAT WAS THE ROLE FOR HIM? IT WAS JUST DRUG ENFORCEMENT. I THE QUESTION I HAVE ON THAT PART OF IT IS WHERE ARE WE IN OUR DRUG ENFORCEMENT? I KNOW THAT WE HAD TEAMED UP. WE WERE TEAMED UP WITH THE COUNTY. THE COUNTY DID AWAY WITH THE DRUG ENFORCEMENT TASK FORCE. SO THEN WE BROUGHT IN AN OFFICER AND WE TEAMED UP WITH SAN MARCOS. SO WHAT I'M WONDERING NOW IS WHAT HAVE WE DONE AS A PD TO DO DRUG ENFORCEMENT? BECAUSE IF WE'RE THINKING ABOUT A DOG, I WONDER WHERE WE ARE STAFF WISE WHEN IT COMES TO THE DRUG TASK FORCE, OR IF WE HAVE A DEPARTMENT SOLELY ON DRUG. WHAT WHERE DO WE STAND RIGHT NOW AS A DEPARTMENT? SO COUNCIL HAS AUTHORIZED US MORE SO IN RECENT YEARS, SOME NARCOTICS INVESTIGATOR POSITIONS YOU'VE GIVEN US. THREE. WE HAVE ONE OF THOSE NARCOTICS INVESTIGATOR POSITIONS FILLED. 
          WE ANTICIPATE FILLING THE OTHERS HOPEFULLY IN 2026 AS THESE ALL OF THESE NEW RECRUITS THAT WE HAVE HIRED AND THAT ARE IN SOME STAGE OF TRAINING, WHETHER IT BE THE ACADEMY OR THE FIELD TRAINING PROGRAM, AS THEY GRADUATE, ALL OF THAT TRAINING REQUIREMENTS, WE WILL THEN BE ABLE TO MOVE CURRENT POLICE OFFICERS OUT INTO THESE SPECIALTY FIELDS. SO YOU'VE GIVEN US THREE NARCOTICS INVESTIGATORS AND THAT'S THAT'S OUR PLATFORM. MOST OF OUR NARCOTICS WORK, HOWEVER, AT THE MOMENT IS DONE WITH OUR PATROL DIVISION AND DOING THEIR I WOULD CALL IT INTERDICTION AND NARCOTICS AS THEY RELATE TO THE CALLS FOR SERVICE THAT THEY ANSWER AND HOW HOW THAT COMES INTO PLAY WITH THEIR INVESTIGATIONS. WE DID PARTNER FOR A SHORT WHILE WITH THE CITY OF SAN MARCOS. THEY HAVE A ROBUST NARCOTICS UNIT, AND IT'S BEEN IN EXISTENCE FOR A LONG TIME. THEY, TOO, WERE ONCE PARTNERED WITH HAYS COUNTY, AND AS THE COUNTY SHIFTED THEIR THEIR STAFFING AND PRIORITIES AND DIVISIONS, THEY BECAME A SOLO OPERATING UNIT. WE PARTNERED WITH THEM FOR A LITTLE WHILE. WE PUT OUR ONE NARCOTICS INVESTIGATOR EMBEDDED WITH THEIR UNIT, AND THE NARCOTICS FOLKS FROM SAN MARCOS WOULD COME TO KYLE AND WORK, AND OUR NARCOTICS INVESTIGATOR WOULD GO TO SAN MARCOS AND WORK. THERE CAME A POINT WHERE OUR NARCOTICS INVESTIGATOR WAS UTILIZING THEM QUITE A BIT AND BRINGING THEM TO KYLE QUITE A BIT, AND THEY SAID, HEY, CAN, WHEN ARE YOU GOING TO GET MORE NARCOTICS INVESTIGATORS? THIS IS BEFORE COUNCIL HAD AUTHORIZED POSITIONS NUMBER TWO AND NUMBER THREE. 
          THIS WAS WHEN WE ONLY HAD ONE. AND I SAID, WELL, WE'LL ASK FOR MORE IN THE BUDGET. AND IF WE GET THEM, I'LL LET YOU KNOW. AND HE SAID, WELL, AND THIS IS THE CHIEF, HE SAID, WELL, WHILE WE WANT TO WORK WITH YOU AND WE'LL ALWAYS WORK WITH YOU, WE WANT TO SEPARATE THAT PARTNERSHIP JUST A LITTLE BIT. AND WE WANT OUR PEOPLE TO FOCUS ON SAN MARCOS. AND MAYBE YOUR GUY FOCUSES ON THE CITY OF KYLE FOR A WHILE. AND THEN WHEN YOU HAVE MORE TO CONTRIBUTE TO THE TEAM, THEN WE CAN REJOIN FORCES. BUT BASICALLY WE HAD ONE AND THEY HAD MULTIPLE, I THINK AROUND SIX, AND THEY WANTED US TO CONTRIBUTE MORE TO THE COUNCIL. SO I DID ASK LAST YEAR AT BUDGET AND COUNCIL, YOU AUTHORIZED TWO MORE POSITIONS. CITY OF SAN MARCOS SAID, IF YOU'VE GOT THREE INVESTIGATORS, WE'RE GOING TO BE ABLE TO WORK TOGETHER AGAIN. WE JUST HAVEN'T BEEN ABLE TO STAFF THOSE. WITH ALL THE NEW OFFICERS THAT I TOLD YOU THAT ARE IN TRAINING, BUT THAT'S COMING AGAIN SOON. WE DIDN'T END THE PARTNERSHIP. WE JUST PAUSED THAT FOR A LITTLE WHILE. BUT THERE WILL COME A DAY AND TIME IN THE FUTURE WHERE WE PARTNER AGAIN WITH SAN MARCOS MORE CLOSELY. 
          NOW WE WORK WITH THEM JUST LIKE WE WORK WITH THE COUNTY AND OTHER AGENCIES. ANYWAY, THAT'S THE PARTNERSHIP OF DAY TO DAY OPERATIONS ISN'T QUITE THE SAME, BUT IT'LL COME BACK OTHER THAN THAT. SO. YES, SIR. GO AHEAD. OKAY. THANK YOU FOR THAT INFORMATION. SO WHAT I'M THINKING ABOUT IS, YOU KNOW, WE'RE WE'RE NOW THE LARGEST MUNICIPALITY IN HAYS COUNTY. AND I KEEP THINKING, WHAT DOES THAT DRUG TASK THE DEPARTMENT LOOK LIKE AS FAR AS A REALLY FULLY FUNCTIONING DRUG TASK FORCE, OR. I DON'T EVEN KNOW WHAT YOU WOULD CALL IT, BUT IT'D BE THE PART OF OUR POLICE DEPARTMENT THAT FOCUSES DRUG. WOULD THAT BE LIKE A SERGEANT AND OR A COMMANDER OR WHAT? DOWN TO THE INVESTIGATORS? WHAT WHAT DOES A REAL GOOD WORKING. AND THE REASON I'M ASKING IS BECAUSE I'M THINKING ABOUT THE FENTANYL AND EVERYTHING WE WENT THROUGH HERE IN HAYS COUNTY. WHAT IS A GOOD DEPARTMENT LOOK LIKE IN IN, IN, IN IN THE FUTURE FOR KYLE. SO I THINK THAT YOU'VE GIVEN US ADEQUATE STAFFING. I THINK WHEN WE FEEL THESE THREE NARCOTICS INVESTIGATOR POSITIONS AND WE PARTNER WITH SAN MARCOS A LITTLE MORE CLOSELY ONCE AGAIN, AND WE'RE WE'RE STAFFED A LITTLE BETTER, I THINK THAT'S GOING TO BE A GREAT START. THIS K-9 IS REALLY MORE FOR THE PATROL OFFICERS OUT THERE. IT WILL SUPPLEMENT THE NARCOTICS INVESTIGATORS WHO TEND TO WORK MORE LONG TERM INVESTIGATIONS. THEY FOCUS ON THE HIGHER LEVEL DEALERS THAT ARE MAYBE DISTRIBUTING TO MULTIPLE SELLERS IN THE COMMUNITY, OR TO JUST TO 
          [04:35:01]
THE COMMUNITY MEMBERS. THE PATROL OFFICERS ARE MORE HAPPENSTANCE. IT'S MORE THE CALL FOR SERVICE. IT'S THE PEOPLE THAT THEY SEE OUT IN THE COMMUNITY A LOT THAT THEY BELIEVE ARE SELLING NARCOTICS, BUT THEY DON'T REALLY HAVE THE TIME TO DEVOTE OFF OF THE PATROL ASSIGNMENT TO GO IN AND CONDUCT THESE MULTI-MONTH OR MULTI-YEAR INVESTIGATIONS WHERE THEY'RE REALLY TARGETING ON THE HIGHER LEVEL DEALER. SO THE K-9 WILL SUPPLEMENT PATROL FOR THE MOST PART, AND THEN THERE WILL COME A TIME, PROBABLY NEXT BUDGET YEAR, IF WE HAVE THESE OTHER TWO NARCOTICS INVESTIGATOR POSITION STAFFED, THAT WE WOULD RESUBMIT A REQUEST FOR CONSIDERATION TO GIVE US A SERGEANT TO OVERSEE THAT THREE PERSON NARCOTIC DETECTIVE UNIT. RIGHT NOW, THE THREE NARCOTIC INVESTIGATORS REPORT TO THE COMMANDER OVER THE CRIMINAL INVESTIGATIONS DIVISION, BUT TWO OF THEM AREN'T FILLED AT THE MOMENT. AND WHEN THEY ARE, WE'LL PROBABLY NEED A MORE DIRECT SUPERVISOR IN THE TERMS OF A SERGEANT, BUT I THINK WE'RE GOOD FOR THAT FOR NEXT YEAR, PERHAPS. OKAY. SOUNDS GOOD. I THINK THAT'S THAT SOUNDS LIKE A GREAT PLAN. I THINK I'D LOVE TO SEE IT IMPLEMENTED A LITTLE SOONER, BUT I UNDERSTAND WE'RE WAITING ON STAFF TO GET TRAINED, BUT I LIKE THAT PLAN. I THINK THAT WOULD BE THE PLAN MOVING FORWARD. I JUST, YOU KNOW, HONESTLY, IT STARTS WITH THE K-9. WE BORROW A K-9 AND I FEEL LIKE WE'RE BORROWING, YOU KNOW, SOME SOME OF SAN MARCOS STAFF. WE'RE BORROWING SOME OF THE COUNTY STAFF. I THINK WE NEED TO BE A LITTLE MORE SELF-SUFFICIENT AS A CITY. WE NEED TO MAKE SURE WE'RE MAKING THAT INVESTMENT AND MOVING FORWARD, ESPECIALLY WHEN FENTANYL IS SUCH A IT WAS SUCH A BIG WHAT DO YOU CALL IT PLAYED SUCH A BIG ROLE IN OUR COMMUNITY THERE FOR A WHILE, WHERE IT REALLY CHANGED PEOPLE'S LIVES AND PUT A LOT OF FEAR INTO PEOPLE. SO I, I THINK IT'S SOMETHING WE NEED TO REALLY LOOK AT. I'M IN FAVOR OF THE K-9. I THINK IT'LL BE GREAT. I JUST WANTED TO MAKE SURE WE WEREN'T PUTTING THE CART BEFORE THE HORSE AND I, I, I GUESS FOR ME IT WOULD BE LIKE THE SERGEANT OR COMMANDER, WHATEVER HE IS BEFORE THE OTHERS. BUT YOU'RE THE PROFESSIONAL. I'M GOING TO TRUST IN YOUR YOUR JUDGMENT, CHIEF, AND WE'LL MOVE FORWARD FROM THERE. BUT I THINK THE K-9 IS A GREAT IDEA. IT'S GOING TO BE A GOOD ASSET ON THE DRONES. I'D LOVE TO SEE THE TWO DRONES. THAT'D BE GREAT. I'D LIKE TO SEE THE AXON SYSTEM USED BECAUSE IT'LL COINCIDE WITH OUR BODY CAMS. AND SO I'D LOVE TO SEE THAT BE LIKE A COMPONENT THAT WILL FIT IN WITH OUR BODY CAMS. THE LAST QUESTION ON THAT ONE IS ARE ARE WITH THE DRONES. WILL THE OFFICERS ON THE GROUND HAVE VIDEO SURVEILLANCE OF WHAT THE DRONE IS SEEING IN SOME TYPE OF LAPTOP OR ON THEIR PHONES OR SOMETHING LIKE THAT, WHERE THEY CAN KIND OF SEE WHAT THE DRONE IS SEEING, OR IS IT GOING TO COME FROM COMMAND? NO, SIR. YOU ARE CORRECT. THEY WILL HAVE ACCESS ON THEIR PHONES AND OTHER MOBILE DEVICES. THE COMPUTERS IN THE CARS, THEY'LL ALL BE CAPABLE. AND IN FACT, THE SYSTEM, THE SOFTWARE WILL ALLOW US TO CAPTURE A WEB LINK AND WE CAN ACTUALLY EMAIL THAT SHARED WEB LINK WITH ANYONE THAT HAS A LAWFUL NEED TO ACCESS THAT THAT VIDEO. PERHAPS IT COULD BE A COMMAND POST. OR MAYBE WE NEED TO SHARE THAT SIMULTANEOUSLY WITH THE SHERIFF'S OFFICE, BECAUSE THERE'S A JOINT OPERATION AND WE NEED THEM TO BE ABLE TO SEE IT. WE CAN ACTUALLY CAPTURE THAT LINK AND SHARE THAT WITH THEM AS WELL FOR THAT TEMPORARY SINGULAR FLIGHT. AND YES, SIR, IT'LL BE AVAILABLE IN THE FIELD TO THE OFFICERS. 
          THAT'S THAT'S GREAT, CHIEF, AND CONGRATULATIONS ON GETTING THAT GRANT. THANK STAFF FOR THEIR HARD TO GET. SO THEY MUST HAVE PUT IN A PRETTY GOOD PROPOSAL. SO THANK THEM FOR GETTING THAT GRANT. AND WITH THAT I I'M GOOD. THANK YOU MAYOR. THANK YOU. ANYONE ELSE? THE SECOND DRONE SOLVED MY ISSUES WITH THE CANINE SO I'M GOOD. I GOT NO QUESTIONS. YEAH. CHIEF, I'M SUPPORTIVE OF BOTH OF THESE GOOD RECOMMENDATIONS. I THINK THESE ARE RESOURCES THAT ARE DEFINITELY GOING TO HELP AND KEEP OFFICERS SAFE AND KEEP OUR COMMUNITY SAFE. I'D ALSO JUST LIKE TO SEE MORE AUTOMATION AS WE KEEP GOING INTO NEXT YEAR'S BUDGET, SO THAT MAYBE YOU COULD LOOK AT LIKE ROBOTS, LIKE THERE'S A ROBOT DOG OR SOME OTHER, SOME OTHER THINGS THAT COULD SAVE US AND BUILD OUR TECHNOLOGY REQUIREMENTS FOR OUR PATROL OFFICERS AND IN ANY WAY THAT WE CAN UTILIZE THAT NEW TECHNOLOGY. ABSOLUTELY. THEY HAVE SOME WONDERFUL EMERGING TECHNOLOGIES THAT ARE BEING USED BY LAW ENFORCEMENT, AND I AGREE. SO I'LL BRING THAT FORWARD. 
          RIGHT. SO I THINK THE DRONES ARE DEFINITELY ONE OF THE THINGS WE'RE GOING TO IMMEDIATELY SEE A GOOD USE OUT OF. THANK YOU. ANYONE ELSE? YEAH. CHIEF. THANKS FOR THE PRESENTATION. I KNOW SOMETHING YOU KNOW, I EXPRESSED SOME CONCERNS AT THE LAST MEETING, AND I DO HAVE A LOT OF QUESTIONS, BUT I'M GOING TO RESERVE THOSE QUESTIONS BECAUSE I KNOW THAT STAFF HAS BEEN WORKING VERY DILIGENTLY TO CREATE, YOU KNOW, WORKING ON DEVELOPING A PATH FORWARD TO DO AN AUDIT AND TO USE THE INFORMATION FOUND IN THAT AUDIT TO DEVELOP A STRONG POLICY. SO I'M GOING TO WITHHOLD FURTHER COMMENT UNTIL I HAVE, LIKE THE ACTUAL HARD DATA THAT CAN. YES, 
          [04:40:04]
SIR. AT YOUR REQUEST AND COUNCIL'S COUNSEL'S CONCERNS THAT WERE MENTIONED. ABSOLUTELY. 
          THE CITY LEADERSHIP TEAM IS WORKING VERY HARD TOGETHER TO DO ALL OF THOSE THINGS. YOU ASK? TRANSPARENCY, AN EXCELLENT POLICY WITH AUDITABLE DATA SO THAT WE CAN BRING THAT FORWARD AND SO THAT OUR COMMUNITY'S AWARE, AS I MENTIONED THAT NIGHT, WE DON'T WANT THE COMMUNITY TO NOT APPRECIATE THE TECHNOLOGY THAT WE'RE USING TO HELP KEEP OUR COMMUNITY SAFE AND NOT TRUST IN IT, BECAUSE THAT'S WHAT WE WANT AS WELL. THAT'S WHAT WE WANT AS PUBLIC SERVANTS, AND WE WANT TO SHARE THAT. SO WE'RE TRYING TO DO EXACTLY WHAT YOU HAD MENTIONED. AND THE TEAM'S WORKING VERY DILIGENTLY. YES, SIR. YEAH. AND I JUST WANT TO MAKE IT ABUNDANTLY CLEAR THAT MY CONCERNS DO NOT AT ALL STEM FROM OUR POLICE DEPARTMENT, OUR OFFICERS. I THINK THAT WE DO THIS THE CITY AND YOU RUN A GREAT POLICE FORCE. I JUST HAVE I QUESTIONING WHETHER OR NOT PARTNER OR FLOCK AND COMPANY TECH FOR PROFIT TECH COMPANIES WHO DO PROVIDE THIS KIND OF TECHNOLOGY ARE GOOD PARTNERS FOR US. AND UNTIL I KNOW MORE, I'LL. YES, SIR. WE CAN PUT A PIN IN IT. OKAY. THANK YOU. CHIEF. YES, SIR. MOTION TO ADJOURN. M
* This transcript was compiled from uncorrected Closed Captioning.