[I) Call Meeting to Order and Roll Call]
          [00:00:12]
          P.M. IT IS THURSDAY, FEBRUARY 5TH, AND I WILL BRING TO ORDER THIS SPECIAL COUNCIL MEETING. 
          MAY I HAVE THE CITY SECRETARY CALL ROLL, PLEASE. FLORES. KALE, OH, HERE. SORRY, TOBIAS. 
          PRESENT. GOSA. HERE. MEDINA. HERE. ZAPATA. HERE. HARRIS. HERE. MCKINNEY. HERE. ALL RIGHT. 
          [II) Citizen Comment Period with City Council]
WE HAVE SEVEN COUNCIL MEMBERS PRESENT. UP NEXT, WE HAVE CITIZENS COMMENT PERIOD. THE CITY COUNCIL WELCOMES COMMENTS FROM CITIZENS. THOSE WISHING TO SPEAK ARE ENCOURAGED TO SIGN IN BEFORE THE MEETING BEGINS. SPEAKERS ARE PROVIDED WITH AN OPPORTUNITY TO SPEAK DURING THIS TIME ON ANY AGENDA ITEM OR ANY OTHER MATTER CONCERNING CITY COUNCIL BUSINESS, AND WE ASK THAT THEY OBSERVE THE THREE MINUTE TIME LIMIT. I HAVE THREE FORMS. FIRST IS GOING TO BE ISABELLA GUZMAN. SORRY. GOOD EVENING, MAYOR AND COUNCIL MEMBERS. WHAT I'M ABOUT TO SHARE HAPPENED IN MY OWN BACKYARD IN FRONT OF MY FAMILY. THREE DAYS AGO. MY DOG ROCCO WAS KILLED BY A NEIGHBOR'S PITBULL. THIS PITBULL BROKE THROUGH OUR FENCE WHILE WE WERE OUTSIDE PLAYING. HE WAS NOT JUST A PET, HE WAS A COMPANION, A SOURCE OF COMFORT AND A PART OF OUR FAMILY. I'M SORRY. MY DOG TRUSTED OUR NEIGHBORHOOD. WE TRUSTED OUR NEIGHBORHOOD. 
          OUR HOME SHOULD HAVE BEEN SAFE. BUT NOW IT'S QUIETER, EMPTIER, AND FILLED WITH LOTS OF GRIEF. 
          WHAT HAS MADE THIS EVEN HARDER IS LEARNING HOW LITTLE ACCOUNTABILITY AND RESPONSIBLE EXISTS UNDER OUR CURRENT SYSTEM. AFTER THIS HAPPENED, WE LEARNED ANIMAL CONTROL WAS LIMITED IN WHAT THEY COULD DO WITHOUT A SUPERVISOR PRESENT. SUPERVISORS ARE ONLY AVAILABLE MONDAY THROUGH FRIDAY FROM 8 TO 5. TRAGEDY DOES NOT FOLLOW BUSINESS HOURS. WHEN DANGEROUS SITUATIONS HAPPEN OUTSIDE OF THAT WINDOW, FLEMINGS ARE LEFT UNPROTECTED WITHOUT IMMEDIATE ACTION. UNDER OUR CURRENT ORDINANCES, A DOG CAN KILL ANOTHER ANIMAL AND THE OWNER MAY FACE LITTLE A LITTLE MORE THAN A CITATION. THIS DOES NOT REFLECT THE SERIOUSNESS OF THE HARM CAUSED, AND IT DOES NOTHING TO PREVENT THIS FROM HAPPENING AGAIN TO ANOTHER PET, ANOTHER FAMILY, OR POTENTIALLY A PERSON. I'VE BEEN LISTENING TO THE CITY'S CONVERSATIONS ABOUT INVESTING $10 MILLION OR MORE INTO AN ANIMAL SHELTER. AND WHILE SHELTERS SERVE AN IMPORTANT ROLE, WE CANNOT IGNORE PREVENTION, STRONGER ORDINANCES, CLEAR EXPECTATIONS FOR PET OWNERS, REAL ACCOUNTABILITY, AND AN ANIMAL CONTROL SYSTEM THAT IS EMPOWERED TO ACT WHEN IT MATTERS. THIS CAN STOP TRAGEDY BEFORE THIS HAPPENS. THIS IS NOT ABOUT REVENGE OR ANGER. IT'S ABOUT RESPONSIBILITY. AND BEING A DOG OWNER IS A SERIOUS COMMITMENT WITH A LOT OF RESPONSIBILITY. AND WHEN IT'S NEGLECTED, FAMILIES LIKE MINE PAY THE PRICE. I'M ASKING YOU TO STRENGTHEN THESE ORDINANCES SO PEOPLE AND PETS CAN FEEL SAFE IN THEIR OWN HOMES. AND SO NO ONE ELSE EVER HAS TO STAND HERE AGAIN. GRIEVING THE LOSS OF A BELOVED COMPANION. THANK YOU. THANK YOU. WE'RE NOT ALLOWED TO RESPOND, BUT I'LL FOLLOW UP. UP NEXT, I HAVE LINDA SHERMAN, PLEASE. GOOD EVENING, MAYOR YVONNE FLOREZ AND COUNCIL MEMBERS. COUNCIL'S OVERSIGHT ROLE REQUIRES UNDERSTANDING WHERE THE PUC DOCKET STANDS, WHAT OUTCOMES ARE POSSIBLE, AND WHAT KYLE IS RISKING FINANCIALLY AND 
          [00:05:09]
OPERATIONALLY. PLEASE REQUIRE SPECIFIC ANSWERS WHEN TALKING WITH ATTORNEYS, NOT GENERALITIES. FOR EXAMPLE, WHERE EXACTLY ARE WE IN THE PUC DOCKET TODAY? OUR PROCEDURAL POSTURE, ANY UPCOMING DEADLINES AND THE NEXT HEARING DATES IF THEY'RE SET? WHAT ARE THE PETITIONERS SPECIFICALLY CLAIMING AND IF THEY PREVAIL, WHAT WOULD THAT REQUIRE KYLE TO DO? WOULD THAT REQUIRE RATE ADJUSTMENTS OR REFUNDS OR CREDITS OR PERHAPS CONTRACT ENFORCEMENT? THE ADMINISTRATIVE LAW JUDGE WITH THE PUC DENIED DISMISSAL OF THE DEVELOPER AGREEMENT WITH SIX CREEKS AND WILL PERMIT THE DEVELOPMENT AGREEMENT AS EVIDENCE. WHAT IS THE CITY'S PLAN TO ADDRESS THIS DEVELOPMENT, AND WHAT IS THE BACKUP PLAN? IF THE EVIDENCE IS PERSUASIVE? HAS THE CITY COMPLETED A FORMAL RISK ASSESSMENT? BALANCING POTENTIAL GAINS VERSUS DOWNSIDE EXPOSURE, WHICH COULD BE LEGAL, OPERATIONAL, FINANCIAL OR REPUTATIONAL? IF YES, WHO PREPARED IT AND WHAT ARE THE HEADLINE CONCLUSIONS? WHAT IS THE ESTIMATED FINANCIAL IMPACT TO THE CITY? IF THE PUC RULES AGAINST THE CITY? RANGES ARE FINE, BUT INCLUDE ASSUMPTIONS. OUR BOND RATINGS OR PIT BONDS AT RISK IF BOND OFFERING LANGUAGE IS CHALLENGED AS MISLEADING, AND WHAT MITIGATION STEPS HAVE BEEN TAKEN. BOND COUNSEL REVIEW DISCLOSURE UPDATES CONTINGENCY PLANNING HAS EITHER SIDE ATTEMPTED SETTLEMENT DISCUSSIONS, MEDIATION OR NARROWING ISSUES? IF NOT, WHY NOT? ON THE INFRASTRUCTURE COST SIDE, WHAT SPECIFIC FACILITIES ARE UNIQUELY REQUIRED TO SERVE THIS ETJ DEVELOPMENT BY THE NAME AND LOCATION OF DEVELOPMENT VERSUS SHARED WITH IN CITY AREAS. DID THE COST OF SERVICE STUDY MODEL THIS AGREEMENT SEPARATELY, GIVEN ITS PROXIMITY TO IN-CITY AREAS OR TREATED AS GENERIC? AFTER ALL, SIX CREEKS IS 30FT AWAY FROM THE CITY LINE? AND WHAT IS THE FACTUAL BASIS FOR WHICHEVER APPROACH WAS USED? THANK YOU. THANK YOU. THANK YOU. 
          UP NEXT, I HAVE JACK PARROTT. GOOD EVENING. MADAM MAYOR AND COUNCIL MEMBERS. GOT A LOT TO GET THROUGH HERE, SO I'M GOING TO HURRY. MARIN COUNCIL MEMBERS. I'M HERE AS ETJ CUSTOMER AND KYLE NEIGHBOR. LAST YEAR'S RATE INCREASE WAS ILL ADVISED, POORLY EXECUTED, AND HAS CAUSED REAL HARDSHIP. AS YOU CONSIDER UPDATES ON THE APPEAL TONIGHT, I ASK YOU TO TO INSIST ON CLEAR, COMPLETE ANSWERS THAT SERVE KYLE'S BEST INTEREST. FIRST QUESTION HOW DOES PUC DEFINE RATE SHOCK? WHAT FACTORS DOES IT CONSIDER WHEN DECIDING WHETHER IT EXISTS FOR 2526? WHAT WAS THE CITY IN CITY ICL WATER AND WASTEWATER RATE INCREASE PERCENTAGE FOR 2526. 
          WHAT WAS THE OUTSIDE CITY LIMITS? RATES FOR WATER AND WASTEWATER WITH INCREASES OF ROUGHLY 15 VERSUS 56%. WOULD THE PUC LIKELY VIEW THAT AS DISPARITY, THAT DISPARITY AS RATE SHOCK? AND WHAT EVIDENCE SUPPORTS THAT CONCLUSION? WHAT SPECIFIC FINDINGS IN THE COST OF SERVICE STUDY JUSTIFY A MATERIALLY HIGHER ETJ RATE INCREASE IN THIS CASE? WHAT STEPS IS THE CITY TAKING TO PREVENT A REPEAT OF THIS TYPE OF RATE IMPACT GOING FORWARD? METHODOLOGY GOVERNMENT NOTICE. PHASING OR CAPS. REFERENCED THE LEANDER DOCUMENT IN SUPPORT OF KYLE'S COST OF SERVICE AND RATE ACTIONS. WAS THIS RATE INCREASE PERCENTAGE IN LANDER AND HOW COMPARABLE IS IT TO KYLE'S ETJ INCREASE? ARE THERE LEGAL OR FACTUAL CONCERNS FOR KYLE IN DRAWING COMPARISONS TO LEANDER AND LEANDER? WERE ANY. AREAS CHARGED IN CITY RATES BECAUSE 
          [00:10:07]
OF NEGOTIATED DEVELOPER AGREEMENTS, PROMISING SERVICE IN THE SAME MANNER, AND ON THE SAME TERMS AND CONDITIONS AS CITY CUSTOMERS? SAME THING WITH SIXTH CREEK SAYS. DO ANY OF KYLE'S ETJ AREAS HAVE DEVELOPMENT AGREEMENTS ADDRESSING UTILITY SERVICE AND DO ANY INCLUDE SAME TERMS AND CONDITIONS OR MATERIALLY SIMILAR SIMILAR LANGUAGE? UNDER KYLE'S AGREEMENT? LANGUAGE SECTION 401. WHAT DOES THE CITY CONTEND? SAME TERMS AND CONDITIONS MEAN. DOES IT INCLUDE RETAIL RATES? YES OR NO? BEFORE THIS DISPUTE AROSE, THE CITY DID THE CITY EVER ISSUE A WRITTEN INTERPRETATION EXPLAINING WHY IN CITY RATES DO NOT APPLY UNDER SECTION 7.01? WHAT DOCUMENT AND DATE? QUESTIONS FOR COUNCIL? WHERE EXACTLY ARE WE IN THE PUC DOCKET TODAY? PROCEDURAL POSTURE, UPCOMING DEADLINES AND NEXT HEARING DATES. I'VE. I CAN'T GET THROUGH IT ALL, BUT I'VE GIVEN YOU ALL HARD COPIES THAT YOU CAN VIEW. THANK YOU. THANK YOU. THANK YOU SIR. THANK YOU. ALL RIGHT. THANK YOU. NEXT I HAVE KHUSHI PATEL. GOOD EVENING EVERYONE. MAYOR AND COUNCIL MEMBERS, IF STAFF ARE CONSULTANTS, ARE RELYING ON OTHER CITIES CASES TO JUSTIFY KYLE'S APPROACH, COUNCIL SHOULD UNDERSTAND WHAT THOSE CASES ACTUALLY SAY AND HOW THEY COMPARE TO KYLE'S FACT AND AGREEMENTS. SOME QUESTIONS I HAVE FOR YOU ALL IS RAFAEL IS REFERENCED THE LENDER DOCKET IN SUPPORT OF KYLE'S COST OF SERVICE AND RATE OF ACTIONS. WHAT WAS THE RATE INCREASE PERCENTAGE IN LENDER AND HOW COMPARABLE IS THAT TO KYLE'S ETJ INCREASE? ARE THERE LEGAL OR FACTUAL CONCERNS FOR KYLE IN DRAWING COMPARISONS TO LENDER LIKE KEY DIFFERENCES, RISK OR LIMITATIONS IN LENDER WHERE ANY ETJ AREAS CHARGED IN CITY RATES BECAUSE OF A NEGOTIATED DEVELOPER AGREEMENT PROMISING SERVICE. DO ANY OF KYLE'S ETJ AREAS HAVE DEVELOPMENT AGREEMENTS ADDRESSING UTILITY SERVICE TERMS, AND DO ANY INCLUDE SAME TERMS AND CONDITIONS OF MATERIALLY SIMILAR OR SIMILAR LANGUAGE? UNDER KYLE'S AGREEMENT? LANGUAGE EXAMPLES. SECTION 401. WHAT DOES THE CITY CONTENT SAME TERMS AND CONDITION MEANS? DOES IT INCLUDE RETAIL RATES? YES OR NO? BEFORE THIS DISPUTE AROSE, DID THE CITY EVER ISSUE OF WRITTEN INTERPRETATION EXPLAINING WHY IN CITY RATES DO NOT APPLY UNDER SECTION 701? IF YES, WHAT DOCUMENT AND DATE WAS IT? WE WE ARE NOT JUST ASKING QUESTIONS TO BE DIFFICULT. 
          WE'RE ASKING BECAUSE DISAGREEMENTS ARE THE REASON MANY OF US CHOSE TO MOVE HERE. 
          AS A STUDENT, I'M LEARNING THAT CONTRACTS AND PROMISES SHOULD MEAN SOMETHING. WE HAVE LAID OUT THE FACTS AND NOW WE NEED SOME ANSWERS. THANK YOU. OKAY. THANK YOU. UP NEXT, I HAVE VIC ALLEN, PLEASE. THANK YOU. GOOD EVENING, MAYOR AND COUNCIL. I BRIEFLY, BRIEFLY WANTED TO ADDRESS THE ITEMS THAT I HAVE SERIOUS CONCERNS ABOUT REGARDING THE RATE STUDY AND YOUR MEETING WITH THE HOUSING ATTORNEY GROUP. ASK. PLEASE ASK GOSLING HOW MANY MUNICIPAL CASES IN TEXAS WHICH HAVE OUR IN CITY RATE CONTRACTS, HAVE THEY LITIGATED? AND PLEASE NAME THEM. ASK GOSLING HOW MANY MUNICIPAL WATER CASES IN THE STATE OF TEXAS WHICH HAVE IN CITY CONTRACTS SUCH AS OURS, HAVE NOT BEEN ENFORCED BY THE UTILITY COMMISSION? PLEASE NAME THEM. ASK HOW MANY? HOW MUCH WILL GOSLING BE CHARGING THE CITY WHEN THIS CHARADE IS OVER? PLEASE ASK YOUR FINANCE DEPARTMENT WHO HAS FAILED TO PRODUCE QUARTERLY FINANCIAL STATEMENTS FOR HOW MANY QUARTERS NOW AND WHY HAS NO ONE DEMANDED THAT? AND WHOSE RESPONSIBILITY IS THAT? YOU HAVE NO WAY OF GOVERNING A CITY WITHOUT KNOWING WHAT YOUR FINANCES ARE? IT IS EVIDENT THAT THERE'S A MASSIVE COVER UP GOING ON IN THE CITY. IS USING WATER RATES TO BAND-AID OVER THE PROBLEM UNTIL GROWTH CATCHES UP WITH THE CITY'S FINANCIAL ISSUES. YOUR REASONS FOR CHARGING SIX CREEKS HIGHER WATER RATES WERE STATED THAT IT COSTS MORE TO DELIVER WATER TO THE OUTLYING DEVELOPMENTS BECAUSE THEY ARE FURTHER AWAY FROM THE CITY. YET WATER RIDGE IS AN ADDITIONAL MILE THROUGH SIX CREEKS, WHICH IS SIX CREEKS, 
          [00:15:07]
WHICH IS ONLY 30FT FROM THE CITY'S WATER MAIN, AND SIX CREEKS PAID FOR THE UPGRADED WATER MAIN TO GO TO WATER RIDGE. YET THEY GET IN CITY RATES AND SIX CREEKS DOES NOT. THE CITY'S WEB PAGE USED TO STATE THAT YOU DON'T MAKE MONEY FROM THE CITY'S WATER DEPARTMENT. 
          HOWEVER, IF YOU ASK THE RIGHT PEOPLE, IT'S APPARENT THAT THE CITY IS POCKETING 50% OF THE RATE INCREASE. I MIGHT ADD THAT THE STATEMENT WAS THERE MONTHS AGO AND IT HAS NOW BEEN TAKEN DOWN. I WAS GOING TO. I WISH I HAD A SCREENSHOT OF IT. ASK YOUR WATER DEPARTMENT. THEY SURE. I'M SURE THEY KNOW THAT IT WAS THERE. I'M SURE SOMEONE KNOWS THAT IT WAS TAKEN DOWN. 
          AND DID CITY COUNCIL HAVE ANY INPUT ON SELECTING THE ATTORNEY FOR THE UTILITY PUBLIC UTILITY COMMISSION PROTEST? YES OR NO. AND WHAT INPUT WAS THAT? WERE YOU GIVEN ANY CHOICES? IT IS INEVITABLE THAT THE CITY OF KYLE WILL END UP IN MULTIPLE LAWSUITS OVER THIS MESS. DID BRYAN LANGLEY TELL YOU OTHERWISE? AND THE LEANDER UTILITY COMMISSION CASE THAT WAS PRESENTED CLEARLY BACKED THE MUD DISTRICTS? THAT CONTRACT WAS LEGAL AND BINDING. 
          AND IF YOU ARE BEING FED ANY INFORMATION OTHER THAN THAT, IT'S A LIE. THANK YOU VERY MUCH. 
          THANK YOU. I HAVE NO MORE FORMS. WOULD ANYBODY ELSE LIKE TO COME UP AND SPEAK? ALL RIGHT. SEEING NONE, I'M GOING TO CLOSE CITIZENS COMMENTS. MR. LANGLEY, ME AND COUNCILMEMBER MAYOR PRO TEM TOBIAS, WE'RE TALKING AND WE WERE WONDERING IF IT WOULD BE A BETTER IDEA TO DO EXECUTIVE AT THE BEGINNING OR THE END? AT THE BEGINNING. OKAY, OKAY. ALL RIGHT, ALL RIGHT. 
          [III) Executive Session]
THEN THE CITY COUNCIL WILL NOW GO INTO EXECUTIVE SESSION TO DISCUSS AGENDA ONE PURSUANT TO TEXAS GOVERNMENT CODE SECTION 55 1.07155, 1.072 AND
* This transcript was compiled from uncorrected Closed Captioning.