Mar 24, 2026 City Council Special Meeting

[21) Discussion and possible direction to staff to evaluate and return to Council with options regarding the potential conveyance or sale of City-owned property currently occupied by Veterans of Foreign Wars Post 12058 to support the organization’s long-term presence and continued service to veterans and the community, including safeguards such as deed restrictions, reversionary, or buy-back provisions to ensure the property remains dedicated to a public purpose.]

ITEM 21. DISCUSSION OF POSSIBLE DIRECTION TO STAFF TO EVALUATE AND RETURN TO COUNCIL WITH OPTIONS REGARDING THE POTENTIAL CONVEYANCE OR SALE OF CITY OWNED PROPERTY CURRENTLY OCCUPIED BY VETERANS OF FOREIGN WARS POST 1205 EIGHT TO SUPPORT THE ORGANIZATION'S LONG TERM PRESENCE AND CONTINUED SERVICE TO VETERANS AND THE COMMUNITY, INCLUDING SAFEGUARDS SUCH AS DEED RESTRICTIONS, REVERSIONARY OR BUYBACK PROVISIONS TO ENSURE THE PROPERTY REMAINS DEDICATED TO A PUBLIC PURPOSE. THIS IS GOING TO BE PRESENTED BY MYSELF, COURTNEY GOSA, OUR COUNCIL MEMBER COURTNEY GOSA AND COUNCIL MEMBER MELISSA MEDINA. SO I'LL START BY INTRODUCING THIS ITEM. TONIGHT'S DISCUSSION IS ABOUT PROVIDING LONG TERM STABILITY FOR AN ORGANIZATION THAT HAS QUIETLY AND CONSISTENTLY SHOWN UP FOR OUR COMMUNITY, THE VETERANS OF FOREIGN WARS POST 1205 EIGHT. WHAT WE'RE ASKING FOR IS TO DIRECT STAFF TO EVALUATE OPTIONS FOR THE POTENTIAL CONVEYANCE OR SALE OF THE PROPERTY THE VFW CURRENTLY OCCUPIES, WITH APPROPRIATE SAFEGUARDS IN PLACE SUCH AS DEED RESTRICTIONS, REVISION, REVERSIONARY CLAUSES OR BUYBACK OPTION TO ENSURE THE PROPERTY ALWAYS REMAINS DEDICATED FOR A PUBLIC PURPOSE. THIS IS NOT ABOUT GIVING LAND AWAY WITHOUT ACCOUNTABILITY. IT IS ABOUT RECOGNIZING THE VALUE, REAL, MEASURABLE VALUE AND MAKING SURE THAT IT CONTINUES. THE VFW IS NOT JUST A MEETING HALL. IT IS A WORKING HUB OF SERVICES THAT FILLS GAPS IN OUR CITY THAT THAT THE CITY SIMPLY CANNOT FILL ON ITS OWN. THE VFW OPERATES A FREE COMMUNITY CLOTHES CLOSET, A FOOD PANTRY, AND HELPS VETERANS NAVIGATE THEIR BENEFITS. THEY HOST A MENTAL HEALTH OUTREACH AND WHEN POSSIBLE, THEY PROVIDE FINANCIAL ASSISTANCE FOR BOTH VETERANS AND RESIDENTS WHO ARE STRUGGLING. THE VFW HOSTS NA MEETINGS, PROVIDE SCHOOL SCHOLARSHIPS AND SUPPORT YOUTH THROUGH BOY SCOUTS AND GIRL SCOUTS. THEY INSTALL SMOKE ALARMS, PROVIDE HONOR GUARD SERVICES, AND SHOW UP FOR FAMILIES DURING SOME OF THEIR HARDEST MOMENTS. THE VFW DOES NOT JUST SERVE VETERANS, THEY SERVE KYLE. ONE OF THE MOST SIGNIFICANT THINGS THEY HAVE RECENTLY DONE IS PARTNERING WITH THE AMERICAN RED CROSS AND WHAT IS THE FIRST OF ITS KIND PILOT PROGRAM. TOGETHER, THEY SERVE A DESIGNATED COOLING CENTER AND WARMING CENTER, HAVE A MOBILE EMERGENCY RESPONSE TEAM, AND RESPOND DURING FIRES

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AND EXTREME WEATHER EVENTS. THEY HOST BLOOD DRIVES AND PROVIDE DISASTER RESPONSE SUPPORT. THOSE ARE SERVICES THAT DIRECTLY SUPPORT PUBLIC SAFETY AND COMMUNITY RESILIENCE.

NOT ALL NONPROFITS OPERATE THIS WAY. MANY DO GREAT WORK, BUT NOT ALL PROVIDE DIRECT DAY TO DAY BOOTS ON THE GROUND SERVICE THAT IMPACT OUR RESIDENTS. THE VFW DOES THIS AGENDA ITEM POSITIONS THE VFW TO GAIN BETTER ACCESS TO GRANT FUNDING. SOMETHING BECOMES MORE VIABLE WHEN THEY HAVE A LONG TERM CONTROL AND STABILITY OVER THEIR FACILITY. THAT MEANS LESS RELIANCE ON LOCAL SUPPORT AND MORE OUTSIDE RESOURCES COMING INTO OUR COMMUNITY. FROM A LEGAL STANDPOINT, CHAPTERS TWO, FIVE, THREE AND 272 OF THE TEXAS LOCAL GOVERNMENT CODE ALLOW MUNICIPALITIES TO CONVEY PROPERTY TO NONPROFITS UNDER CERTAIN CONDITIONS, INCLUDING BELOW MARKET VALUE, WHEN IT SERVES A PUBLIC PURPOSE. WHERE WE ARE DISCUSSING FITS WITHIN THAT FRAMEWORK, ESPECIALLY WITH SAFEGUARDS LIKE A REVERSION CLAUSE IF THE PROPERTY EVER STOPS BEING USED FOR ITS INTENDED PURPOSE. I ALSO WANT TO ADDRESS A CONCERN I KNOW THAT WILL COME UP. WHAT ABOUT OTHER NONPROFITS? THAT IS A FAIR QUESTION, BUT NOT EVERY SITUATION IS THE SAME. THIS IS A LONG STANDING ORGANIZATION ALREADY OPERATING ON CITY PROPERTY, ALREADY PROVIDING MEASURABLE PUBLIC BENEFIT, AND ALREADY FUNCTIONING AS A PARTNER IN AREAS LIKE EMERGENCY RESPONSE. ANY FUTURE REQUESTS FROM OTHER ORGANIZATIONS WOULD NEED TO BE EVALUATED ON THEIR OWN MERITS WITH THE SAME LEVEL OF SCRUTINY. THIS IS NOT OPENING A DOOR WITHOUT STANDARDS. IT IS RECOGNIZING A PARTNER THAT HAS ALREADY PROVEN ITS VALUE AT THE END OF THE. AT THE END OF THE DAY, THIS IS ABOUT WHETHER WE WANT TO SECURE A PERMANENT HOME FOR AN ORGANIZATION THAT IS ACTIVELY SUPPORTING OUR RESIDENTS EVERY SINGLE WEEK. AND WITH THAT, I WILL TURN IT OVER TO COUNCIL MEMBER MEDINA. THANK YOU. MAYOR.

I WANT TO SPEND A MOMENT TALKING ABOUT WHAT THIS LOOKS LIKE FROM A COMMUNITY PERSPECTIVE. WHEN WE TALK ABOUT THE VFW, WE'RE TALKING ABOUT A CONSISTENT, RELIABLE PRESENCE.

THE VFW PROVIDES SERVICES AND SUPPORT THAT BENEFIT OUR RESIDENTS IN WAYS THE CITY MAY NOT ALWAYS HAVE THE CAPACITY TO PROVIDE DIRECTLY. ORGANIZATIONS LIKE THIS STRENGTHEN OUR COMMUNITY AND OFTEN STEP IN DURING TIMES OF NEED. THEY HOST WEEKLY AND MONTHLY EVENTS THAT PEOPLE DEPEND ON, FROM FREE COMMUNITY BREAKFASTS EVERY FRIDAY TO THE NA MEETINGS THE MAYOR MENTIONED EVERY SUNDAY, TO ONGOING OUTREACH THROUGH THEIR FIRESIDE CHATS. THIS IS A PLACE WHERE PEOPLE GO WHEN THEY REALLY NEED SUPPORT. THEY HAVE HELPED PLACE SERVICE DOGS FOR VETERANS. THEY PROVIDE HAIRCUTS, CLOTHING AND BASIC HOUSEHOLD ITEMS. THEY'VE WORKED WITH LOCAL PARTNERS TO REDISTRIBUTE MEDICAL EQUIPMENT AND HELPED FAMILIES IN CRISIS. THEY ALSO WORK WITH THE AMERICAN RED CROSS FOR DISASTER RELIEF AND INSTALL FIRE DETECTORS IN HOMES IN NEED. AND THEY DO ALL OF THIS WITHOUT A LARGE INSTITUTIONAL STRUCTURE BEHIND THEM. IT'S VOLUNTEERS COMMITMENT AND THE PEOPLE JUST STEPPING UP TO GET THIS DONE.

THEY SUPPORT THE COMMUNITY IN WAYS THAT BRING PEOPLE TOGETHER, WHETHER IT'S YOUTH PROGRAMS, QUILTING PROGRAMS, OR COMMUNITY EVENTS LIKE THEIR HAUNTED HOUSE, WHICH I WILL SAY I MISSED THIS LAST YEAR. THERE ARE THESE KIND OF EFFORTS THAT BUILD COMMUNITY IDENTITY AND CONNECTION. OUR VETERAN ORGANIZATIONS HAVE HISTORICALLY PLAYED AN IMPORTANT ROLE IN COMMUNITIES ACROSS THE COUNTRY, TAKING THE TIME TO EVALUATE HOW WE CAN SUPPORT THE CONTINUATION OF THOSE SERVICES. HERE IS SIMPLY THE RESPONSIBLE AND THE RIGHT THING TO DO. IF WE'RE SERIOUS ABOUT SUPPORTING ORGANIZATIONS THAT ARE ACTIVELY DOING THE WORK, NOT JUST PLANNING IT OR TALKING ABOUT IT, THE VFW IS EXACTLY THAT KIND OF ORGANIZATION. THIS IS ALREADY HAPPENING IN OUR COMMUNITY. YOU GUYS ARE ALREADY FILLING THOSE NEEDS FOR US. WITH THAT, I'LL TURN IT OVER TO COUNCIL MEMBER GOZA. THANK YOU, COUNCIL MEMBER BENITA MEDINA. SORRY, JUST TRYING TO TALK A LITTLE FAST. I WANT TO TOUCH ON WHAT THIS LONG TERM VIEW LOOKS LIKE FOR THEM.

WHAT WE'RE DISCUSSING TONIGHT IS ABOUT GIVING THEM STABILITY AND CONTINUITY. SOME OF YOU MAY HAVE KNOWN THAT THEY WERE ALREADY DISPLACED ONCE. AND SO THIS IS THEIR SECOND HOME HERE.

AND SO RIGHT NOW, THE VFW OPERATING IN A SPACE WITHOUT LONG TERM CERTAINTY, THE LIMITS OF WHAT THEY CAN INVEST, WHAT THEY CAN PLAN, WHAT THEY CAN APPLY FOR IN TERMS OF FUNDING, ALL OF THAT IS AT STAKE BY GIVING THEM A PATH TO PERMANENCE WITH CLEAR CONDITIONS, WE'RE GIVING THEM THE ABILITY TO GROW THE IMPACT TO THE COMMUNITY. AND TO BE CLEAR, THIS CAN BE STRUCTURED IN A RESPONSIBLE WAY. WE CAN DO DEED RESTRICTIONS, REVERSION CLAUSE IN A BUY BACK OPTION. ALL OF THOSE THINGS ARE POSSIBLE, JUST AS MAYOR MENTIONED. AND AND IF AT ANY POINT THE PROPERTY ISN'T IS NO LONGER USED FOR A PUBLIC PURPOSE, IT COMES BACK INTO THE CITY. SO WE'RE NOT LOSING CONTROL. SPECIFICALLY, WE'RE WE'RE SECURING A PARTNERSHIP THAT IS QUITE ESSENTIAL TO OUR COMMUNITY AND SUPPORTING ONE

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ORGANIZATION THAT HAS DEMONSTRATED CONSISTENT DIRECT IMPACT DOES NOT OBLIGATE THE CITY TO DO THE SAME WITH EVERY CASE. EACH NONPROFIT SHOULD BE JUDGED ON ITS OWN MERITS. THE VFW HAS A TRACK RECORD AND THEY HAVE PARTNERSHIPS AND THEY HAVE OUTCOMES. AND THIS IS ABOUT RECOGNIZING THAT AND MAKING A DECISION THAT BENEFITS THE COMMUNITY LONG TERM. ALL RIGHT.

THANK YOU. THANK YOU, COUNCIL MEMBER GOSA COUNCIL, WHAT IS BEFORE US TONIGHT IS NOT THE FINAL ACTION. IT IS GIVING DIRECTION TO STAFF TO BRING BACK OPTIONS. EVEN MORE SO, IT IS AN OPPORTUNITY TO BE CLEAR ABOUT OUR PRIORITIES. DO WE SUPPORT ORGANIZATIONS THAT ALREADY DO THE WORK? DO WE INVEST IN PARTNERSHIPS THAT STRENGTHEN OUR COMMUNITY? DO WE TAKE STEPS TO ENSURE THOSE SERVICES ARE HERE, NOT JUST TODAY, BUT YEARS FROM NOW? FOR ME, THE ANSWER IS YES. WE BELIEVE THERE IS NO BETTER HOME FOR THE VETERANS OF FOREIGN WARS POST 12 058 THAN ON VETERANS DRIVE. WE ARE OPEN TO QUESTIONS. YES. CONGRATULATIONS ON YOUR 20TH YEAR. AND I GUESS ONE THING IT IS LOOK, WE CAN START WITH GO WITH FUNDING. SO THROUGH THE 20 YEARS THAT THEY'VE BEEN OPERATING, DO WE KNOW IF THEY'VE EVER DONE ANY KIND OF FUNDRAISING FOR A BUILDING FUND? I THINK AT ONE TIME CAS WAS RAISING MONEY ON THEIR OWN TO BE ABLE TO HAVE WHAT WAS ALMOST 250,000 OR SOMETHING OF THAT RANGE. YEAH, THEY RAISED A LITTLE UNDER 200,000, SO THEY RAISED UNDER 200,000 REFUNDED TO THEM. THE BUILDING THEY'RE GOING INTO IS CITY OWNED AND REMAINS. AND THEY JUST HAVE A USE AGREEMENT.

OKAY. SO DURING THAT 20 YEARS, DO YOU KNOW IF WE KNOW IF THE VFW DID ANY KIND OF FUNDING FOR A BUILDING FUND OR SOMETHING LIKE THAT TO WHERE THEY WERE LOOKING AT PURCHASING THEIR OWN FACILITY ON THAT END TO WHERE. SURE. BECAUSE AGAIN, I UNDERSTAND THE NOBLE DEED OF WHAT WE'RE TRYING TO DO HERE. THAT'S THAT WE'RE NOT I'M NOT DEBATING THAT, BUT THERE'S GOING TO BE QUESTIONS FROM OUR TAXPAYERS, OKAY, THAT ARE GOING TO BE WONDERING TO KNOW, AGAIN, AS THE MAYOR HAS BROUGHT FORTH, IF THIS GOES THROUGH, OF COURSE, WE WANT TO HAVE COUNCILMEMBER MCKINNEY'S OPINIONS AS WELL. THE FUNDING ON IT. IF YOU IF THERE'S BEEN IN THE PAST ANY KIND OF FUNDRAISING DONE, BECAUSE I KNOW YOU GUYS DO A LOT. SO SO I'VE BEEN THERE AGAIN. STEVE COOK, VFW QUARTERMASTER, AND WE HAVE RECEIVED NO FUNDS FROM THE CITY.

I'VE BEEN THERE 19.5 YEARS OF THE 20 YEARS IT'S ALL BEEN DONATIONS AND EVERY CENT OF OUR DONATIONS OPERATES. WHAT WE DO GIVING BACK TO VETERANS, TO RECENTLY PAYING WATER BILLS TO SOME OF OUR CITIZENS. SO WE ARE NOT ABLE TO WRITE GRANTS OR GET ANY REPAIRS TO OUR BUILDING, BECAUSE WE CONSTANTLY TOLD THAT WE DON'T OWN THE PROPERTY. OKAY. SO WHEN IT COMES TO GRANTS GOING FORWARD, LIKE I SAID, FILL ME IN ON HOW THE VFW WORKS. IS THERE A PROCESS TO WHERE YOU, YOUR ORGANIZATIONS, YOUR NONPROFITS WITH YOURS WOULD BE ABLE TO FILE FOR GRANTS TO BE ABLE TO FUND FACILITIES, YOU KNOW, ACROSS THE CITIES OR ACROSS THE NATIONS OR SOMETHING LIKE THAT. OR IS IT BECAUSE OF THERE'S OTHER BARRIERS THAT YOU GUYS THAT YOU GUYS HAVE? I'M JUST WONDERING, THOUGH, THROUGH THE YEARS THAT Y'ALL BEEN IN EXISTENCE HERE IN KYLE, WAS THERE EVER DISCUSSIONS OF, WE NEED TO HAVE OUR OWN FACILITY? HOW DO WE GO ABOUT BUDGETING TO BE ABLE TO AT LEAST COME DOWN WITH A DOWN PAYMENT OR IN YEARS TO COME PARTNER WITH ANOTHER ENTITY SUCH AS A COUNTY OR CITY OR ANOTHER PARTNERSHIP? WAS THAT EVER BROUGHT UP THROUGH THROUGH THE YEARS? IT'S BEEN BROUGHT UP OVER THE 20 YEARS. ONE THING ABOUT THE VFW AND FUNDS FROM THE TEXAS VFW FOUNDATION IN ORDER TO GET ASSISTANCE, AND A LOT OF THEM, YOU HAVE TO BE THE SOLE ENTITY OF THE PROPERTY. SO WHAT WE DO IS WE HAVE NINE ORGANIZATIONS THAT WE CAN CONTROL. THE VFW VES ORGANIZATION, AND WE HAVE TO PROTECT THAT NAME. SO EVERYBODY THAT IS UNDER OUR UMBRELLA, WE VET AND WE MAKE SURE THAT THEY'RE DOING WHAT THEY'RE SUPPOSED TO BE DOING. OKAY. SO GRANTS GOING FORWARD, YOU HAVE TO BE THE SOLE OWNER OF THE PROPERTY, THE BUILDING, THE LAND, BECAUSE LET'S SAY THIS DOES GO THROUGH THAT, YOU KNOW, THE CITY GRANTS YOU THIS FREE PROPERTY. WOULDN'T SAY FREE. YES, SIR, BUT IT'S HANDED TO YOU. ALL RIGHT. YOU'RE GOING TO NEED UPGRADES. YOU'RE GOING TO NEED IMPROVEMENTS. YOU'RE GOING

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TO WANT TO BUILD OUT. YES. SO WHAT WILL BE THE PLAN THEN. WOULD YOU BE COMING BACK TO THE CITY AS WELL OR THE COUNTY. OR WOULD THIS BE A SELF-FUNDED KIND OF FACILITY FUNDED TO WHERE YOU WOULD HAVE TO DO MORE FUNDRAISING? BECAUSE I KNOW YOU'RE DOING FUNDRAISING TO HELP THE VETERANS WITHIN THE PROJECTS THAT YOU DO, BUT TAKING ON A FACILITY AND WANTING TO EXPAND IT IN YEARS, WHAT WOULD BE YOUR LONG TERM GOALS? BECAUSE THAT'S HOW I LOOK AT THINGS. SHORT TERM, LONG TERM GOALS. IF YOU'RE IF YOU'RE LOOKING AT ACQUIRING A CERTAIN TYPES OF PROPERTIES OR FULLY FULFILLING A MISSION IN A SENSE. CORRECT? ABSOLUTELY. SO WITH OUR PARTNERSHIP, WE'RE BLESSED TO HAVE THE RED CROSS HERE TONIGHT. THOSE GRANTS ARE BASED UPON WHAT WE DO NOW. IF WE DID GET CONTROL OF THE LAND, THAT WILL OPEN UP MORE REVENUE STREAM. AND WE ACTUALLY WANT TO MODIFY THE PROPERTY TO HAVE AN ACTUAL COOLING AND WARMING CENTER. SO THAT BUILDING HAS BEEN ADDED ON PROBABLY 20 TIMES. AND IT'S THE BACK AREA IS NOT REALLY USEFUL. WE HAD A GREAT HAUNTED HOUSE AND THAT WAS GREAT BECAUSE YOU COULD WALK THROUGH 20 DIFFERENT AREAS, BUT WE WOULD STILL KEEP THE FRONT. WE WOULD UPGRADE THE FRONT FACADE WITH THE CITY LOOKING AT, BUT IN THE BACK WOULD ACTUALLY BE A CENTER FOR COOLING AND WARMER. BUT FOR OUR CITIZENS OF KYLE, TEXAS THAT WANT TO THROW BIRTHDAY PARTIES, IT WOULD BE A COST EFFECTIVE WAY FOR THEM TO COME AND RENT, WHETHER IT BE EVENT OR BREAKFAST. WE'RE STANDING ROOM ONLY, SO THIS WILL ALLOW US TO BRING MORE CITIZENS IN, MORE HELP. AND WITH THE PARTNERSHIP OF RED CROSS DESIGN AND BUILDING THAT IS PERMANENT AND LONG LASTING.

OKAY. AND THAT THAT WOULD ALSO HELP WITH YOUR FUTURE LAND TAXES. CORRECT ON THAT, BECAUSE THE CITY CURRENTLY TAKES CARE OF THE TAXES ON THAT END. OR IS IT IS IT PAID THROUGH THROUGH THEIR LEASE AGREEMENTS, TAX EXEMPT, TAX EXEMPT PROPERTY? OKAY. SO IT'S TAX EXEMPT. YES, SIR. OKAY. ALL RIGHT. THAT'S KIND OF WHAT I GOT FOR RIGHT NOW. THANK YOU. I YIELD THE FLOOR. ANY QUESTIONS WHILE I'M UP HERE? QUESTION. COUNCILMEMBER HARRIS, YOU MENTIONED SEVERAL THINGS. THE BUILDING'S INADEQUATE, THE BUILDING THAT YOU MOVED OUT OF TO GO TO THIS ONE WAS VERY INADEQUATE AND UNHEALTHY. I'M REALLY CONCERNED THAT THAT BUILDING IS VERY INADEQUATE FOR YOU. I THINK THAT THE VFW AND AMVETS DESERVE SOMETHING MUCH BETTER THAN THAT, THAT I THINK THAT PROPERTY IS NOT NECESSARILY THE RIGHT PLACE FOR YOU TO BE ON A LONG TERM BASIS. I THINK THAT WE HAVE, TO THE BEST OF MY KNOWLEDGE, CITY OF KYLE HAS NEVER DEEDED CITY PROPERTY OVER TO A NONPROFIT. THIS WOULD SET A PRECEDENT.

WELL, YOU ALL HAVE THE OPPORTUNITY TO CHANGE THAT. TONIGHT IS ALL I GOT TO SAY.

WE'VE BEEN AROUND 20 YEARS. THE AMVETS IS COUNTY OWNED PROPERTY. THE VFW CITY, EVEN THOUGH THEY'RE CLOSE TO EACH OTHER, THAT PROPERTY IS PLENTY ADEQUATE. WHAT WE WOULD DO IS TURN THE FIRST BUILDING. WE'VE ALREADY PUT OUR OWN MONEY INTO THE FLOOR. WE'VE ALREADY PUT OUR OWN MONEY INTO RENOVATION. WE HAVEN'T COME TO THE CITY SINCE WE'VE HAD THAT BUILDING FOR A DIME. WE HAVE PUT THE SKIN IN THE BACK OF EVERY VETERAN HERE HAS PUT IN MONEY TO KEEP THE UPKEEP. WHAT WE WOULD DO IS RENOVATE TO WHERE WE CAN ACTUALLY HAVE A BUILDING OUT BACK. THE PROPERTY IS WAY BIG ENOUGH TO WHERE WE CAN ACTUALLY HAVE A COOLING AND WARMING CENTER FOR OUR CITY, OUR CITIZENS. AT KYLE HOUSE, DISASTER RESPONSE SUPPLIES AND ACTUALLY HAVE A. FOR. I GET CALLS EVERY DAY OF PEOPLE THAT WE HAD TDS THAT COME DID A FUNERAL BECAUSE THEY COULDN'T FIND A PLACE. WE HAVE PEOPLE CONSTANTLY HAVE TO TURN AWAY BECAUSE BIRTHDAY PARTIES. WHAT THIS WILL ALLOW IN THAT FACILITY AND THE FOOTPRINT IS ABSOLUTELY BIG ENOUGH TO PROVIDE FOR OUR CITIZENS OF KYLE. AND THAT PROPERTY IS EXTREMELY ACTIVE. AND MAYBE ONE DAY, YOU KNOW, WE GET 100,000 PEOPLE AND WE'VE RAISED ENOUGH MONEY THAT WE DO MOVE AWAY. THE CITY GETS IT BACK. YOU'RE NOT OUT ANYTHING. ALL WE'RE ASKING IS TO LET US HAVE THE PROPERTY FOR NOW. GROW, BECOME BETTER AND CONTINUE FOR WHAT OUR CITIZENS NEED. THAT'S ALL WE'RE ASKING. DO YOU HAVE ANY MORE QUESTIONS? OKAY. ALL RIGHT. ANY QUESTIONS? THAT'S IT. OH, NO. SORRY. I HAVE SOME QUESTIONS AS WELL. NO WORRIES. I'M SORRY.

DON'T MEAN TO KEEP YOU UP HERE FOR THAT LONG, BUT I THINK ONE OF MY QUESTIONS IS, AND I'LL DIRECT THIS OVER HERE IS HOW MUCH IF IT'S DEEDED OVER, DOES THAT MEAN THEY'LL HAVE TO PAY THE PROPERTY TAXES ON IT AFTER? SO THAT'S GOING TO DEPEND ON TAX EXEMPTIONS THAT APPLY TO

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THEIR ENTITY. I WAS GOING TO BRING UP THE MAYOR MENTIONS THAT THERE ARE SOME PROVISIONS IN THE LAW THAT ALLOW THE CITY TO PROVIDE PROPERTY TO CERTAIN NON-PROFITS TO MANAGE EXPECTATIONS. I DO WANT TO NOTE THAT I'M GOING TO NEED SOME INFORMATION ABOUT THEIR ORGANIZATION TO MAKE SURE THAT THEY QUALIFY, AND TO MAKE SURE THAT THE PURPOSE FOR APPROVING QUALIFIES. OKAY. BECAUSE I THINK MY CONCERN IS, I THINK, ONE, IT WOULD BE REALLY HELPFUL IF I COULD SEE THE LAST THREE FISCAL YEAR FORM NINE 90S TO LOOK AT THE OVERALL FINANCIAL HEALTH IN THE LAST THREE AUDITS THAT HAVE BEEN COMPLETED. I THINK THAT WILL HELP DETERMINE AS TO WHETHER OR NOT IT IS GOING TO BE SUSTAINABLE. AS A FULL TIME GRANT WRITER PROFESSIONALLY, I UNDERSTAND THAT EVEN COMING ACROSS GRANTS, FOR EXAMPLE, FOR CAPITAL IMPROVEMENTS ARE VERY, VERY FAR AND FEW BETWEEN AND ARE VERY, VERY DIFFICULT TO WIN. SO YOU WILL NEED A LONG TERM PLAN IN ORDER TO CURRENT TO BUILD OUT. BECAUSE IF YOU'RE TALKING ABOUT BUILDING ADDITIONAL BUILDINGS IN THE BACK, YOU'RE TALKING MILLIONS AND MILLIONS OF DOLLARS, AND THAT IS GOING TO BE SOMETHING THAT IS GOING TO BE DIFFICULT TO ACHIEVE. WHAT I'M WONDERING IS IF THERE IS ANYTHING THAT WE CAN DO WITHIN OUR CURRENT AGREEMENT THAT ALLOWS THEM TO OWN THE BUILDING ITSELF, SO THAT WAY THEY CAN MAKE THE NECESSARY IMPROVEMENTS AND UPGRADES THAT THEY NEED. AS A GRANT WRITER, I KNOW THAT THERE ARE MANY GRANTS THAT ARE AVAILABLE WHERE YOU DON'T NECESSARILY HAVE TO OWN THE BUILDING. AND SO I JUST, I WANT TO MAKE SURE THAT WHATEVER IT IS THAT WE'RE DOING, I WANT TO LEAVE Y'ALL IN GOOD FINANCIAL HEALTH AS WELL AND NOT CREATE SOME ■SORT OF LIKE UNFAIR, UNDUE BURDEN BECAUSE IT'S VERY DIFFICULT. SO, I MEAN, THAT WOULD BE MY ONLY REQUEST IS TO HAVE THOSE FORM NINE 90S AND THE AUDITS. I CAN ABSOLUTELY PROVIDE THOSE. THAT IS OPEN RECORD UPON REQUEST, AND I'M HAPPY TO PROVIDE THEM. AS FAR AS THE FACILITY BUILD OUT, WE HAVE OUR COMMUNITY, WE HAVE BUSINESSES THAT HAVE COME TO US. AND THEY SAID, STEVE OR TO JASON, TO OUR MEMBERS, WE WANT TO HELP. SO I DON'T. THE MILLIONS OF DOLLARS. YEAH, IT WOULD, BUT OUR VFW HAS STOOD IN THIS COMMUNITY AND PEOPLE ARE READY TO BACK US. WE DIDN'T ASK SOME OF THESE PEOPLE TO TALK ABOUT THE VFW TONIGHT. THEY DID THIS ON THEIR OWN, AND THERE COULD HAVE BEEN MORE COMMUNITY MEMBERS OUT HERE. BUT WE WE HAVE THE BACKING AND I'M NOT REALLY CONCERNED. QUARTERMASTER.

I'VE SEEN THE FINANCIALS. WE HAVE CLOSE TO 40,000 RIGHT NOW. THAT WOULD THAT WOULD START US ON. AND I'LL TELL YOU WHAT, THE RED CROSS, PRIOR TO PARTNERING WITH THEM. THEY ARE AMAZING.

THEY HAVE HELPED US AND THEY'RE READY TO HELP US. SO AS FAR AS QUARTERMASTER OVER THE LAST THREE YEARS, I DON'T REALLY SEE THAT BECAUSE A LOT OF THIS WILL BE OFFSET BY BUSINESS BUILDERS AND PEOPLE WE KNOW HELPING US BUILD THIS OUT. OKAY. AND LIKE I SAID, THIS IS ONLY COMING OUT OF A PLACE OF CARE. LIKE I SAID, I JUST DIDN'T WANT TO CREATE SOME SORT OF UNDUE BURDEN AND I AGREE. AND THAT THAT IS WE TALKED ABOUT THAT WE'RE TAKING THE FINANCIAL BURDEN. ONCE THIS PROPERTY IS NEEDED OVER TO US. OKAY. AND WE HAVE HAD THOSE DISCUSSIONS WITH SOME BUSINESSES THAT ARE READY TO GET ON BOARD. OKAY. ALL RIGHT. THANK YOU. THOSE ARE MY QUESTIONS. THANK YOU. ALL RIGHT. COUNCIL MEMBERS ANY. I JUST HAVE ONE LAST THING. THAT'S ALL IT IS. IS. IS IF YOU FORMULATE A PLAN. YES. OKAY. I THINK WE ALL UNDERSTAND THAT THE ENTIRE COMMUNITY UNDERSTANDS WHERE YOUR ENTIRE MISSION IS COMING FROM. WHAT YOU DO IS GREAT FOR THE COMMUNITY. LET'S PUT THAT ASIDE OVER HERE. THAT'S GREAT. THAT'S GOOD. OKAY. WE ALL UNDERSTAND THAT IT'S THE LONG TERM MISSION, AS YOU SOLDIERS WOULD SAY, THE LONG TERM GOALS, WHAT YOU'RE PLANNING ON DOING. YOUR FINANCIAL GOALS, YOUR, YOUR, YOUR OUTPOST AS FAR AS YOUR BUILD OUTS, LIKE I SAID, I KNOW YOU'VE BEEN HERE 20 YEARS. AND I THINK IN SOMETIMES IN MY MIND IN 20 YEARS, DID ANYBODY EVER APPROACH TO SAY, WE WANT TO REDO YOUR FOUNDATION FOR YOU? HAS THERE BEEN ANY KIND OF COMPANIES OR ANY KIND OF TO ACTUALLY COME OUT AND SAY, WE'D LIKE TO BE ABLE TO DO THIS? SO I THINK IF YOU FORMULATE A PLAN AND YOU WORK WITH THE CITY AS WELL, AND YOU CAN SAY, THIS IS OUR LONG TERM, THESE ARE OUR SHORT TERM GOALS, INCLUDING OUR FINANCIAL GOALS WHERE WE'RE AT, THIS IS WHERE WE WANT TO END UP. THESE ARE THE NON-PROFITS THAT ARE GOING TO BE INCLUDED WITH US AS WELL. OKAY. LET'S SAY THE BOY SCOUTS, GIRL SCOUTS, I CAN HEAR THE MASONS KNOCKING ON THE DOOR. I CAN HEAR CARS COMING. I CAN HEAR A LOT OF OTHERS.

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PROBABLY HATS OFF FOR VETERANS AND SO FORTH. WE CAN ALL COMMUNICATE. AMVETS AUXILIARY EVERYBODY. THE WAY I LOOK AT IT IS THAT YOU'RE ALL IN ONE AREA. YOU HAVE ALL SERVE YOUR YOUR COUNTRY AS ONE. YOU'RE ALL IN ONE. WHAT'S YOUR SHORT TERM AND YOUR LONG TERM GOALS WOULD BE FINANCES. THE GROUP'S PROGRAMING AND SO FORTH. AND THAT WAY WHEN THE COMMUNITY WHICH THEY WILL BE COMING OUT TO US, THEY'RE GOING TO BE REACHING OUT TO YOU SAYING, WHAT'S THE PLAN THAT YOU'RE DOING FOR THIS NONPROFIT VETERANS GROUP? YOU KNOW, I CAN WE CAN BE ABLE TO ADDRESS THOSE ISSUES, THOSE CONCERNS THAT THEY MAY HAVE. THIS IS WHY THE CITY IS GOING FORWARD WITH THIS. THIS IS WHY COUNCIL SUPPORTING IT OR NOT SUPPORTING IT, BUT HAVING THOSE GOALS IN SET IN PLACE WOULD PROBABLY HELP US MAKE THAT DECISION FOR A LONG TERM, SAYING THAT THIS IS A WIN WIN SITUATION. WELL, WITH ALL DUE RESPECT, LET'S NOT MUDDY THE WATERS. WE HAVE THOSE PLANS IN PLACE AND THE MASONIC LODGE CAME TO HERE AND OFFERED THE CITY, AND THEY HAVE A BUYER IN LINE. SO THE MASONIC LODGE DOES NOT NEED THE VFW, NOR DOES AMVETS. THERE'S THIS CONSTANT LIKE POOL, BUT THAT THAT IS NOT A REALITY. THE VFW STANDALONE.

OKAY, I DON'T MEAN TO TAKE AWAY STEVE'S THUNDER. I JUST WANT TO MAKE SOME CLARIFICATIONS REAL QUICK. YES, SIR. SOMETHING JUST OVER OVERLOOKED IS OUR PLAN. WE HAVE TALKED AND WE HAVE COME UP WITH. AND I'VE BEEN DOING SOME RESEARCH ON METAL BUILDINGS. AND WITH ALL DUE RESPECT, COUNCILMAN ZAPATA, IT'S NOT GOING TO TAKE MILLIONS. MILLIONS ARE BUILDING A TAJ MAHAL. WE'RE NOT GOING TO DO THAT. WE'RE GOING TO BUILD A COMMUNITY CENTER. NOT ONLY IS THIS GOING TO HELP THE CITIZENS AND OUR VETERANS HERE IN KYLE TO GIVE THEM A PLACE TO MEET, BUT ARE ALSO GOING TO GIVE THEM A PLACE TO RENT OUT. NOW, THAT'S GOING TO BE OUR PRIMARY MONEY MAKER. SO WHAT THAT MONEY IS GOING TO DO NOT ONLY IS HELP OUR PAY OUR EXPENSES, BUT WE'RE GOING TO SET UP A, A SAVINGS ACCOUNT AND WE'RE GOING TO SHOW OUR INVESTORS AND WE'RE GOING TO SHOW THAT OUR, OUR PARTNERS AND OUR SUPPORTERS THAT, HEY, WE ARE VIABLE. WE CAN STAND ALONE, BUT AND WE ARE GROWING. WE WANT TO, WE WANT TO INCREASE OUR VIABILITY AND OUR FOOTPRINT HERE BY HAVING A SOLID FOUNDATION, WHICH WOULD BE THE LAND. AND YES, I AGREE, I'M READY TO TEAR THAT HOUSE DOWN. FACT OF THE MATTER, I THINK IT'D BE GREAT TRAINING ENVIRONMENT FOR THE FIRE DEPARTMENT ON THE DAY WE NEED IT DONE. HOWEVER, RIGHT NOW THAT'S THE ONLY THING WE HAVE. SO I HONESTLY BELIEVE THAT OUR VISION, EVEN THOUGH IT'S NOT BEEN PRESENTED QUITE CLEARLY TONIGHT IS, IS IS READY TO GO. AND ALL WE NEED IS A PLACE TO TELL OUR SUPPORTERS, OUR PARTNERS AND ANYBODY ELSE WHO WANTS TO JOIN THE VFW AS A MEMBER THAT WE ARE HERE TO STAY. AND THESE ARE OUR BENEFITS. COME JOIN US. AND YES, AND TO HIS POINT, VFW STANDS ALONE. THE VFW, STATE AND NATIONAL CHAPTERS ARE THEIR HEADQUARTERS.

THEY TELL US WE DON'T PARTNER WITH ANYBODY ELSE. THAT'S JUST THE WAY OUR STATE AND OUR NATIONAL IS. AND THAT'S THERE'S A LOT OF REASONS BEHIND THAT I'M NOT GOING TO GET INTO TONIGHT, BUT THERE'S A LOT OF CONFLICT OF INTEREST. AND EVEN THOUGH WE SERVE THE SAME VETERANS, WE ALL HAVE DIFFERENT MISSIONS, BUT WE'RE SERVING THOSE VETERANS. AND I CAN'T EXPLAIN IT IN THE TIME IT TAKES TO. I UNDERSTAND YOU UNDERSTAND, YOU UNDERSTAND IT'S POLITICAL.

BUT FROM SOMEBODY OUTSIDE LOOKING IN, YOU KNOW, YOU ALL SERVE THE SAME. YOU'RE ON THE SAME TEAM. BUT I'LL TELL YOU, YOU ARE ALL VETERANS, WHETHER YOU'RE ARMY, NAVY, AIR FORCE, MARINES. AND SOMETIMES WHEN YOU HEAR THESE BATTLES, UNFORTUNATELY, AND I KNOW WE'RE GETTING OFF TOPIC, IT JUST KIND OF IT, YOU KNOW, SOMETIMES FOR US, IT'S LIKE, OKAY, WELL THEN NOT TO TAKE AWAY FROM WHAT YOU'RE DOING, BUT AGAIN, WHO'S GOING TO BE NEXT ON OUR OPINION? IS IT GOING TO BE ANOTHER GROUP? IS IT GOING TO BE, YOU KNOW, THE SENIOR SAYING, WHY DIDN'T WE GET THE SAME KIND OF TREATMENT AS WELL WHEN WE HAD THE MONEY UP FRONT, SO FORTH.

BUT OVERALL, I APPRECIATE WHAT YOU GOT. CONTINUE TO DO THE GREAT THINGS YOU'RE DOING, FORMULATE A PLAN. SO THAT WAY THE CITY CAN BE ABLE TO HAVE THAT. AND I THINK IF YOU HAVE IT LONG TERM AND YOU CAN SEE IT, THE PEOPLE THAT WANT TO SUPPORT YOU IN THE LONG RUN CAN SEE WHAT YOUR OVERALL MISSION AND GOALS ARE. IT'S GOING TO BENEFIT YOU IN THE FUTURE. MY OWN PERSONAL, MY OWN PERSONAL VISION FOR THIS IS THAT WE ARE CITY FREE COME TEN YEARS FROM NOW. I SEE THAT MYSELF, BUT WE STILL HAVE A LOT OF WORK TO DO AND WE GENERATE. WE'RE GOING TO

[01:20:03]

GENERATE OUR OWN INCOME AND WE'RE GOING TO SAVE OUR OWN MONEY. WE'RE GOING TO HAVE OUR OWN PEOPLE TO HELP US. AND AT SOME POINT, I WOULD LOVE TO BE ABLE TO SAY, YOU KNOW WHAT? WE BOUGHT THAT PROPERTY, WE DID THAT, WE PAID FOR IT, AND Y'ALL COME. THAT'S JUST WHERE I, I SIT WITH IT. SO I DON'T WANT TO BE A DEPENDENT FOR THE, WITH THE CITY FOREVER. NOT NOT WITH THE VFW. SO I DON'T WANT YOU ALL TO THINK THAT HUNDRED YEARS FROM NOW, YOU'RE GOING TO HAVE A COUNCIL AND WE'RE NOT GOING TO KNOW THEM BECAUSE WE'RE GOING TO BE DEAD, BUT THEY'RE GOING TO HAVE TO DEAL WITH THIS. I'M HOPING AND I WE'RE PLANNING TO MAKE SURE THAT THAT DOESN'T HAPPEN. SO THANK YOU FOR YOUR TIME. AGAIN. THANK YOU FOR YOUR SERVICE. I JUST HAD A QUESTION FOR STAFF. CAN YOU. COUNCIL, COUNCIL MEMBER ZAPATA. SO I HAD A QUESTION HOW MUCH IS THE VALUE OF THE PROPERTY RIGHT NOW? THE LAND? I DON'T I DON'T KNOW THE ANSWER TO THAT. WE'D HAVE TO GET AN APPRAISAL ON IT. OKAY. YEAH. IF WE COULD GET AN APPRAISAL ON IT. BECAUSE IF I THINK IF I REMEMBER THEY SAID THEY HAVE ROUGHLY ABOUT 40,000 IN THE ACCOUNT RIGHT NOW, AND I JUST DON'T KNOW IF ANYTHING THAT WE COULD OFFER WOULD NOT BANKRUPT THAT 40,000 THAT THEY HAVE IN THE ACCOUNT, DEPENDING ON HOW MUCH IT'S VALUED AT AND THE TYPE OF DEED THAT WE POSSIBLY BRING BACK TO THEM. SO IF WE COULD JUST GET THAT INFORMATION, I THINK THAT WOULD BE HELPFUL. AND THEN ALSO, I'M NOT SURE IF THERE WAS INFORMATION THAT YOU NEEDED. I MEAN, I REQUESTED THE FORM NINE 90S AND THE AUDITS, BUT I JUST WANT TO MAKE SURE THAT WE'RE GETTING YOU THE INFORMATION THAT YOU NEED. SO THE LIMITATIONS IN THE LAW THAT ALLOW THE CITY TO PROVIDE PROPERTY WITHOUT BIDS, SALES, AUCTIONS, THAT SORT OF THING ARE VERY SPECIFIC ON NONPROFITS. AND SO I WOULD NEED SOME INFORMATION ABOUT, YOU KNOW, WHAT KIND OF NONPROFIT THEY ARE. PROBABLY THE 1990S WOULD PROVIDE THAT. IF NOT, WE COULD REACH OUT TO THE VFW TO GET MORE. OKAY. I'M GOING TO SAY A FEW THINGS. FIRST AND FOREMOST, AS I STATED, IF OTHER ORGANIZATIONS WANT TO COME HERE AND PRESENT, I'M ALWAYS WILLING TO LISTEN, BUT THEY WOULD ALSO NEED TO BE EVALUATED ON THEIR OWN MERITS WITH THE SAME LEVEL OF SCRUTINY. NOW, THE VFW IS HERE TODAY BECAUSE THEY HAVE SHOWN UP TIME AND TIME AND 20 YEARS TIMES OVER AGAIN. AND SO WE ARE NOT GETTING SOMETHING FOR NOTHING. THEY ARE NOT TAKING, AND WE'RE NOT JUST GIVING IT AWAY FOR THEM TO PROVIDE THE SERVICES THAT THEY DO, WHICH HAS TO DO WITH PROVIDING FOOD TO OUR RESIDENTS, PROVIDING MENTAL HEALTH TO OUR RESIDENTS, PROVIDING A COMMUNITY CLOSET TO OUR RESIDENTS. I ASK, HOW MUCH IS THAT WORTH TO OUR COUNCIL? HOW MUCH IS THAT WORTH TO YOU, COUNCIL MEMBER TOBIAS, TO HAVE ONE PERSON TO BE ABLE TO GO AND TALK TO THESE FELLOW VFW DURING THEIR FIRESIDE CHATS. I CAN TELL YOU RIGHT NOW, IF YOU WANT TO SEE A PSYCHIATRIST THAT'S $185 AN HOUR, ASK ME HOW I KNOW $185 AN HOUR. SO THEY'RE THEY'RE PROVIDING SOMETHING TO OUR COMMUNITY. WE'VE SEEN THEM, WE KNOW THEIR BACKGROUND AND WE KNOW WHAT THEY'VE DONE. SO THE IDEA THAT WE HAVE TO CONFORM TO EVERY NONPROFIT, I THINK IS UNFAIR, BECAUSE IT SHOULD ALWAYS BE A CASE BY CASE BASIS.

TRUE. AND AGAIN, I'M NOT I'M NOT ARGUING WHAT THEY DO OR DON'T DO, MAYOR. I'M JUST LOOKING AT THE LONG TERM BECAUSE AGAIN, WHEN WE'RE TRYING TO BE FISCALLY RESPONSIBLE ON A LOT OF THINGS HERE, AND I KNOW THAT COMES UP ON THIS DAIS A LOT, I WANT TO MAKE SURE THAT THEY'RE SUCCESSFUL. OKAY? WE WANT TO MAKE SURE YOU'RE SUCCESSFUL BECAUSE IT'S ONE THING TO HAVE A VISION. THEN SAY, THIS IS WHERE I'M AT. BUT YOU, I ALWAYS USE THE TERM, YOU GOT TO BUILD THE BOX FIRST BEFORE YOU CAN THINK OUTSIDE IT, OKAY? YOU GOT TO BUILD IT FIRST. YOU GOT TO GET THE CONCEPT, YOU GOT THE INGREDIENTS, YOU GOT TO GET THE SUGAR, THE FLOUR, ALL THAT STUFF COMES TOGETHER BEFORE YOU ACTUALLY CAN MOVE FORWARD AND ON THE PLAN. SO I HAVE VALID QUESTIONS AND I'M NOT DISREGARDING VETERANS BECAUSE, YOU KNOW, I AM A SON OF A VETERAN. MY FATHER'S SCHOOL WAS RIGHT ACROSS THE STREET OVER THERE CALLED TOBIAS ELEMENTARY SCHOOL. SO THERE IS NOBODY HERE THAT CAN COME AND CRITICIZE ME THAT I DON'T SUPPORT VETERANS. YOU'RE NOT. THEY'RE TAKING MY FATHER TO THE VA CLINIC. I'VE DONE THAT BEFORE. YOU'RE NOT THE ONE THAT HAS TO GO THROUGH AND SEE ALL WHAT HE WENT THROUGH AS MUCH AS I DID GROWING UP, AND ALSO THE GREAT THINGS HE'S DONE FOR THE COMMUNITY AND THE GREAT THINGS THAT MY MOTHER AND MY FATHER STAND FOR, SUPPORTING VETERANS, INCLUDING MY UNCLE'S, THAT HAVE PASSED ON. SO NOBODY IS DOUBTING THAT. I JUST WANT TO

[01:25:01]

MAKE SURE THAT THEY'RE SUCCESSFUL. MAYOR. WELL, I THINK 20 YEARS OF BEING ACTIVE IN THE COMMUNITY, 20 YEARS, A LOT OF COMPANIES DO NOT LAST THAT LONG. SO I HAD THE RIGHT TO ASK DURING THAT TIME OF BEING HERE 20 YEARS, WAS THERE EVER IN THEIR MANY, MANY MEETINGS THAT THEY'VE HAD THROUGH THE YEARS, WAS ANYTHING EVER BROUGHT UP TO SAY, HEY, LET'S START LOOKING AT MAYBE HAVING OUR OWN BUILDING FUNDING OR PURCHASING A BUILDING HERE IN KYLE. IT'S JUST A QUESTION IF THAT HAS EVER BEEN TALKED ABOUT. THAT'S I MEAN, I THINK THAT'S A LEGIT QUESTION. I THINK IT'S I RESPECT THAT. I THINK IT'S KIND OF DIFFICULT BECAUSE THEY WERE IN THAT VFW BUILDING PROBABLY LONG BEFORE THEY DIDN'T THINK THAT THEY WERE GOING TO HAVE A PLACE. AND SO I, I COMPLETELY UNDERSTAND THAT. BUT LOOKING AND KNOWING THE HISTORY, I THINK IT SHOWS THAT MAYBE THAT WAS NEVER AN ISSUE BECAUSE THEY ALREADY HAD A PLACE. AND THE REASON WHY I SUPPORT IT IS FOR PEOPLE LIKE YOUR DAD AND MY DAD WHO SERVED, THEY HAVE A PLACE TO GO. AND MORE IMPORTANTLY, THE THE RESIDENTS THAT NEED HELP PAYING THEIR BILLS. WHEN I GO TO THEM, THEY GIVE ME MONEY AND I GIVE IT TO THEM AND THEY HELP. SO IT'S NOT AN ISOLATED SITUATION. THIS IS FOR OUR WHOLE COMMUNITY. AND SO I WILL SAY, I WANT TO MAKE A MOTION TO APPROVE AGENDA ITEM 21. AND I WOULD LIKE TO ADD FOR THE STIPULATIONS WOULD BE I WOULD LIKE TO SEE AN APPRAISAL. I WOULD LIKE TO SEE THE NINE 90S AND THREE, AND THEN AUDITS FOR THE LAST THREE YEARS. AND THEN I WOULD LIKE TO USE OR TO MAKE SURE THAT WE BRING BACK INFORMATION FOR. I THINK IT'S 530 .11 NON NONPROFIT FOR PUBLIC USE LAND REVERTS BACK TO CITY. IT'S A TRANSFER INSTEAD OF A SALE, BUT TO BRING IT ALL BACK WOULD BE GREAT. WOULD YOU LIKE THE LONG AND SHORT TERM PLAN INCLUDED? IT WOULD BE HELPFUL. SO THAT WAY WE COULD SEE THEIR TOTAL VISION BECAUSE THAT WAY THE COMMUNITY CAN BE AWARE NOT JUST US, BUT THE COMMUNITY CAN BE AWARE WHY THEY WANT TO SET A PERMANENT RESIDENT HERE. OKAY.

DOES STAFF, THAT WAS A MOTION ON THE FLOOR. DO I HAVE A SECOND? SECOND OKAY, I HAVE A MOTION BY MYSELF, A SECOND BY COUNCIL MEMBER MEDINA. ALL IN FAVOR, SAY AYE. ALL OPPOSED? OKAY. MOTION PASSES 6 TO 0. I DO. I DO WANT TO. I WANT TO STIPULATE THIS. YOU GUYS ARE GOING TO HAVE TO COME BACK AGAIN BECAUSE THIS IS JUST GIVING DIRECTION TO STAFF TO DO THIS. SO I DON'T WANT IT TO BE LIKE, HEY, THIS IS SETTING IN STONE. THIS IS THE FIRST STEP TO SOMETHING, TO THE CONSIDERATION. MADAM MAYOR, CAN I MAKE ONE SHORT? JUST REAL SHORT. YOU MAY. SO COUNCIL MEMBERS, MADAM MAYOR, SPEAKING FOR AN ORGANIZATION THAT HAS BEEN A PART OF THIS COMMUNITY BEFORE THIS COMMUNITY WAS IN EXISTENCE AS A NONPROFIT THAT HAS GIVEN HUNDREDS OF THOUSANDS OF DOLLARS. WE DON'T WANT ANYTHING FROM THE CITY. WE'RE NOT ASKING. AND IN FACT, I'M PRETTY SURE I CAN PUT THE MASONIC LODGES SUPPORT BEHIND THE VETERANS. THIS IS NOT ABOUT MAKING A DECISION RIGHT NOW. THIS IS ABOUT MAKING A DECISION WHEN Y'ALL AREN'T HERE, AND OTHERS WHO DON'T SUPPORT VETERANS GET IN THOSE POSITIONS.

THAT'S WHAT IT'S ABOUT. IT'S ABOUT SECURING A FUTURE FOR AN ORGANIZATION THAT HAS ALREADY ESTABLISHED ITS NEED IN THE COMMUNITY, HAS ALREADY ESTABLISHED A PATTERN, AND HAS ALREADY HAS A TRACK RECORD OF HUGE SUPPORT FOR THIS COMMUNITY. THANK YOU, THANK YOU. YEAH, WE SHUT IT DOWN. ALL RIGHT. THANK YOU. WE'RE GOING TO GO BACK TO THE BEGINNING OF THE AGENDA.

[4) Receive a report, hold a discussion, and provide staff feedback regarding Common Ground’s design progress and community engagement for the Heroes Memorial Park restaurant site, consistent with prior Council direction.]

ITEM NUMBER FOUR REPORT. YEAH REPORTS AND PRESENTATION. WE'RE GOING TO RECEIVE A REPORT, HOLD A DISCUSSION AND PROVIDE STAFF FEEDBACK REGARDING COMMON GROUNDS, DESIGN PROGRESS AND COMMUNITY ENGAGEMENT FOR THE HEROES MEMORIAL PARK RESTAURANT SITE. CONSISTENT WITH THE PRIOR PRIOR COUNCIL DIRECTION. I LIKE HOW YOU PUT THAT IN THERE. THANK YOU. GOOD EVENING. ROSIE TRUELOVE, EXECUTIVE DIRECTOR OF STRATEGIC DEVELOPMENT, HERE TO TALK TO YOU ABOUT OUR HEROES MEMORIAL PARK RESTAURANT. SO ON NOVEMBER 18TH, 2025, CITY COUNCIL APPROVED A RESOLUTION AWARDING AN RFP TO NATE NICKERSON ENTERPRISES, DOING BUSINESS AS COMMON GROUND AND AUTHORIZE THE CITY MANAGER TO EXECUTE AN EXCLUSIVE NEGOTIATION AGREEMENT FOR THE PURPOSE OF ADVANCING SITE PLANNING AND PRELIMINARY DESIGN COORDINATION TO REFINE THE

[01:30:01]

CONCEPT AND ENSURE ALIGNMENT WITH THE CITY'S VISION FOR THE HEROES MEMORIAL PARK RESTAURANT SITE. SO TO ORIENT FOLKS TO THE PROJECT SITE, THIS IS A RESTAURANT PAD INTENTIONALLY PLANNED AS PART OF THE BRICK AND MORTAR DISTRICT VISION, AND IT LEVERAGES PRIOR CITY INVESTMENTS AND PARK STREETS, UTILITIES, PARKING, AND TRAILS TO CREATE A HIGH QUALITY, COMMUNITY COMMUNITY ORIENTED DESTINATION. WE HAVE GONE THROUGH THE PROCESS OF EXECUTING THE EXCLUSIVE NEGOTIATION AGREEMENT WITH COMMON GROUND. WE'VE CONDUCTED A COMMUNITY SURVEY, AND WE'RE LOOKING HERE TODAY TO UPDATE COUNCIL AND THE PUBLIC ABOUT WHERE WE'RE AT WITH THIS PARTICULAR PROJECT. THIS IS ALL DONE IN ALIGNMENT WITH OUR STRATEGIC PLAN, WITH THE COUNCIL'S STRATEGIC PLAN. IT ALIGNS WITH THE GOALS OF THRIVING AND PROSPEROUS ECONOMY AND A FUN AND VIBRANT COMMUNITY SUPPORTING ECONOMIC GROWTH BY ACTIVATING CITY OWNED PROPERTY WITH PRIVATE INVESTMENT THAT INCREASES SALES TAX REVENUE, CREATES JOBS, AND STRENGTHENS THE BRICK AND MORTAR DISTRICT AS A DESTINATION WITHIN THE CITY OF KYLE. IT ALSO ENHANCES COMMUNITY VIBRANCY BY INTRODUCING A GATHERING ORIENTED DEVELOPMENT THAT COMPLEMENTS NEARBY PARKS AND PUBLIC SPACES AND SUPPORTS COMMUNITY PROGRAMING, IMPROVING THE QUALITY OF LIFE FOR OUR RESIDENTS. THIS PROPERTY WAS CONVEYED TO THE CITY AS PART OF THE DEVELOPMENT AGREEMENT FOR PLUM CREEK, OR MOUNTAIN PLUM.

IT IS INTENDED OR LIMITED TO BEING A RESTAURANT AND THE DEVELOPMENT PLANS MUST BE REVIEWED BY THE DESIGN REVIEW COMMITTEE OF THE OF PLUM CREEK BRICK AND MORTAR DISTRICT. SO WHAT THE SITE CAN BE. IT CAN BE A FULL SERVICE RESTAURANT. IT CAN BE A SIT DOWN DINING ESTABLISHMENT. IT CAN BE COMPATIBLE WITH RETAIL USE WITHIN A MIXED USE COMMERCIAL DISTRICT. IT CAN SUPPORT THAT VIBRANT, PEDESTRIAN FRIENDLY, BRICK AND MORTAR DISTRICT THAT WE HAVE. IT CANNOT BE A FAST FOOD ESTABLISHMENT OR HAVE A DRIVE THROUGH. IT CANNOT BE A LARGE CONVENIENCE STORE, CANNOT BE AUTO SALES OR REPAIR EQUIPMENT RENTAL OR A LIQUOR STORE, A PAWN SHOP, CHECK CASHING SMOKE SHOP, VAPE SHOP, ADULT ORIENTED BUSINESS. IT CANNOT BE A PROVIDER OF GUN SALES. THE DEED RESTRICTIONS ENSURED THAT THIS PARCEL BECOMES A HIGH QUALITY DINING DESTINATION, NOT A DRIVE THROUGH OR INCOMPATIBLE COMMERCIAL USE. PROTECTING THE LONG TERM CHARACTER OF THE DISTRICT. SO WE'RE GOING TO TALK A LITTLE BIT ABOUT THE COMMUNITY SURVEY. WE HAD 1492 TOTAL COMPLETED RESPONSES. THE SURVEY PERIOD WAS DECEMBER 31ST THROUGH JANUARY 27TH OF 2026. BREAKDOWN 67.6% RESIDE WITHIN THE CITY OF KYLE, 17.4 IN THE ETJ, AND THE REST ELSEWHERE IN HAYS COUNTY OR OUTSIDE OF HAYS COUNTY. BUT OVER 85% OF THE RESPONSES WERE FROM THE KYLE CITY LIMITS OR OUR EXTRATERRITORIAL JURISDICTION, WHICH IS EXCITING AGE DISTRIBUTION. OUR LARGEST GROUP WAS 35 TO 44 AT ABOUT 32%. IN THE 25 TO 34 BREAKDOWN, WE HAD 23.6%, 45 TO 54 19.2. SO WE'RE SEEING BROAD PARTICIPATION ACROSS ALL AGE GROUPS. AND BECAUSE WE'RE TALKING ABOUT SOMETHING ADJACENT TO HEROES MEMORIAL PARK, WE DID WANT TO TO CHECK IN WITH OUR RESPONDENTS ON US SERVICE AFFILIATION, 10.5% WERE MILITARY AFFILIATED, 27% HAD AN IMMEDIATE FAMILY MEMBER OF SERVICE OR FIRST RESPONDER OR OR LAW ENFORCEMENT, AND 55% WERE WERE NOT DIDN'T IDENTIFY WITH EITHER OF THE TWO OPTIONS. SO THERE WAS A HIGH LEVEL OF COMMUNITY OF PREFERENCE FROM THE COMMUNITY, THE COMMUNITY SURVEY, TO HAVE A SIT DOWN DINING EXPERIENCE WITH QUALITY FOCUSED CONCEPTS. THERE WASN'T A SINGLE CUISINE THAT WAS OVERWHELMINGLY DOMINANT, BUT THEY PREFERRED A FAMILY FRIENDLY ATMOSPHERE WITH AN OUTDOOR SEATING COMPONENT. AND FOR FOR THE RESTAURANT TO BE HIGHLY INTEGRATED INTO THE PARK SETTING THAT WAS VALUED AND WHAT MATTERS MOST, QUALITY OF FOOD AND EXPERIENCE FIT WITHIN THE PARK ENVIRONMENT AND THAT COMMUNITY ORIENTED ATMOSPHERE. SO BECAUSE WE WERE PROMOTING THE SURVEY ON SOCIAL MEDIA, WE HAVE SOME, SOME STATISTICS AND, AND AN OVERVIEW OF THAT ENGAGEMENT FROM TWO FACEBOOK POSTS. WE HAD A REACH OF ALMOST 85,000 PEOPLE WITH OVER 1000 TOTAL COMMENTS AND 528 INDIVIDUALLY IDENTIFIABLE COMMENTERS FROM OUR TWO INSTAGRAM POSTS. WE HAD ALMOST 6000 TOTAL REACH WITH 99 COMMENTS. THE IMPORTANT CONTEXT

[01:35:01]

HERE IS TO NOTE THAT THIS WAS VOLUNTARY PARTICIPATION AND A SELF-SELECTED AUDIENCE.

RESIDENCY WAS NOT VERIFIED. ACCOUNTS WERE NOT INDEPENDENTLY VALIDATED. THAT'S NOT A STATISTICALLY REPRESENTATIVE SAMPLE OF OUR BROADER COMMUNITY, BUT IT'S GOOD TO KNOW WHAT KIND OF OUTREACH WE HAD OR HOW WE WERE REACHING FOLKS THROUGH OUR SOCIAL MEDIA ENGAGEMENT. SOME OF THE THEMES THAT WE HAD THROUGH OUR SOCIAL MEDIA ENGAGEMENT, THERE WERE SUPPORTIVE THEMES FOR THE DESIRE FOR SIT DOWN DINING, LOCALLY OWNED CUPS, PREFERENCES FOR FAMILY FRIENDLY EXPERIENTIAL FORMATS, SOME SUPPORT FOR MULTI-VENDOR OR PAVILION STYLE CONCEPTS. BUT WE DON'T BELIEVE FROM STAFF'S PERSPECTIVE THAT THAT IS REALLY COMPATIBLE WITH WHAT THE DEED RESTRICTIONS HAVE ON THAT PARTICULAR ON THIS PARTICULAR PARCEL, SOME OF THE OPPOSITION THEMES, CONCERNS ABOUT THE THE CHARACTER AND THE MEMORIAL NATURE, THE REVERENT NATURE OF HEROES MEMORIAL PARK WANTING TO PRESERVE GREEN SPACE AND SITE APPROPRIATENESS. MAYBE IT'S NOT IDEALLY POSITIONED AS A RESTAURANT LOCATION. THE KEY PATTERN THERE IS THAT NO SINGLE CONCEPT ACHIEVED A MAJORITY OF SUPPORT THROUGH THE SOCIAL MEDIA ENGAGEMENT, AND SUGGESTIONS WERE WIDELY DISPERSED ACROSS BRANDS, CUISINES AND FORMATS. THE DISTINCTION THAT WE WOULD WANT TO BRING FOR YOU IS THAT THIS REFLECTS ENGAGEMENT FROM SOCIAL MEDIA PARTICIPANTS ONLY, NOT THE FORMAL SURVEY. IT'S NOT STATISTICALLY REPRESENTATIVE AND NOT A VOTE. SO I WANTED TO SHARE SOME OF THE INFORMATION FROM THAT ASPECT. AND NOW I'M GOING TO TURN IT OVER TO OUR FRIENDS AT COMMON GROUND, AND THEY'RE GOING TO SHARE MORE ABOUT HOW THEY'RE GOING TO TAKE THIS FEEDBACK, HOW THEY'VE ADJUSTED THINGS FROM WHAT THEY HEARD FROM THE LAST TIME THEY VISITED WITH YOU GUYS AT A COUNCIL MEETING AND WHERE WE'RE GOING FROM HERE. SO NATE, DAVE, THANK YOU. GOOD EVENING, MAYOR AND MEMBERS OF COUNCIL. WE REALLY APPRECIATE THE OPPORTUNITY TO TALK ABOUT THIS REALLY IMPORTANT PIECE OF PROPERTY IN THE CITY OF KYLE WITH YOU AGAIN TONIGHT. WHEN WE WERE HERE LAST TIME, WE RECEIVED SOME REALLY GREAT COMMENTS AND QUESTIONS. AND SO WHAT WE'D LIKE TO DO IS SORT OF ADDRESS THOSE AND SHARE OUR THOUGHTS AND RESPONDING TO THOSE. SO SOME OF THOSE WERE, I THINK I CAN PROBABLY ADVANCE THIS. OH, THERE WE GO ABOUT LIGHTING AND THE, THE DARK SKY PHILOSOPHY FOR THE CITY, ALSO ABOUT STRIKING A BALANCE BETWEEN THE MEMORIAL NATURE OF THE PARK AND ANY RESTAURANT THAT'S GOING TO BE NEARBY IT.

AND THEN ALSO ABOUT CREATING SOME SEPARATION BETWEEN THOSE TWO USES THROUGH DIFFERENT GRADES AND LANDSCAPING AND PROGRAMING. I THINK WE CAN ACHIEVE THAT. AND REALLY OVERALL, IT'S ABOUT COMPLETING, I THINK, THE VISION OF HEROES MEMORIAL PARK AND THE GREATER BRICK AND MORTAR DISTRICT THAT IS SO IMPORTANT TO THIS COMMUNITY. SO I'D LIKE TO INTRODUCE ASHLEY TO TALK A LITTLE BIT ABOUT OUR THOUGHTS ON THOSE POINTS. YEAH, ABSOLUTELY. THANK YOU AGAIN FOR GIVING US THE TIME TO BE HERE WITH YOU. I'M AN ARCHITECT WHO SPENT MOST OF MY CAREER WORKING IN COMMUNITY, PUBLIC FOCUSED TYPES OF ARCHITECTURE, ALL IN THIS CENTRAL TEXAS AREA FROM SAN ANTONIO TO AUSTIN AND IN BETWEEN. SO WE'RE REALLY EXCITED ABOUT BRINGING JUST THE ETHOS OF WHAT MAKES GREAT SPACES IN CENTRAL TEXAS TO THIS SITE SO THAT IT'S REALLY ABOUT IT'S COMPLEMENTARY NATURE, AS WE'VE REINFORCED TO THE PARK AS SOMETHING THAT'S REALLY HONORING AND SUPPORTING THAT AS MUCH AS BEING A DESTINATION AND A SORT OF THRESHOLD TO THE BRICK AND MORTAR DISTRICT IN AND OF ITSELF. SO TO JUST DIVE INTO A COUPLE OF THESE POINTS MORE, DARK SKY IS ABSOLUTELY FUNDAMENTAL TO HOW WE DESIGN EVERYTHING. NOW, WE ARE ALL A LOT MORE INFORMED ABOUT WHAT THAT MEANS IN TERMS OF THE PROTECTION OF ALLOWING US TO HAVE DARKER SKIES AND SEE THE STARS AT NIGHT. SO THERE ARE LOTS OF LIGHT FIXTURES AVAILABLE THAT ARE ALL FULL CUT OFF. WE ALWAYS SPECIFY THAT MAKING SURE THAT WE'RE USING VERY WARM, EVEN AMBER TONES OF LIGHT IN THE EVENING, AND AGAIN, THAT THERE'S AN IDEA OF WHERE LIGHT MIGHT BE CONCENTRATED THAT IS ALL FULL CUT OFF TO SUPPORT ACTIVITY AND KIND OF FADE OUT VERY GRACEFULLY INTO SOMETHING THAT ALLOWS FOR ENJOYMENT OF THE PARK AND AN APPROPRIATE WAY. MEMORIAL CHARACTER HAS BEEN TOPMOST ON OUR MINDS FROM THE BEGINNING OF THIS PROJECT AND THINKING ABOUT THE DESIGN OF, OF, AGAIN, A BUILDING IN A STRUCTURE THAT COMPLEMENTS AND SUPPORTS ONE'S EXPERIENCE OF THE EXISTING PARK AND ACTUALLY ENHANCES IT BY ALLOWING MORE PEOPLE TO BE AWARE OF IT AND ENJOY IT AND APPRECIATE THOSE MEMORIALS AND DISCOVER THEM FOR THEMSELVES. SO THINKING ABOUT HOW WE CAN REALLY BUFFER USING LANDSCAPE, USING LANDSCAPE WALLS AND MATERIALS AND A LOT OF THE STONES AND OTHER EXISTING CUES THAT ARE THERE IN THE PARK TO CREATE REALLY GREAT SEPARATION

[01:40:04]

VISUALLY AND ACOUSTICALLY, BETWEEN THE SORT OF ACTIVITY OF THE RESTAURANT AND THE PARK ITSELF. AND THERE'S, THERE'S SPACE IN THE SITE TO ALLOW FOR THAT AS WELL IN A REALLY GREAT WAY. ADDITIONALLY, THERE IS A GRADE SEPARATION BECAUSE THE SITE FOR THE RESTAURANT IS SET A LITTLE BIT HIGHER AND A LITTLE BIT MORE AT THE ROADWAY LEVEL, IT'S SORT OF NATURALLY MORE ALIGNED TOWARD THOSE THINGS. AND AGAIN, THE STEPPING DOWN AND USING LANDSCAPE WILL REALLY ALLOW THE EXPERIENCE OF BEING IN THE PARK TO BE MORE ABOUT SEEING THAT LANDSCAPE BUFFER AND BEING AT EYE LEVEL WITH THOSE PLANTS AND THOSE WALLS. AND NOT UNTIL YOU GET UP SORT OF ONTO THAT SLIGHTLY HIGHER STANDPOINT, WOULD YOU BE LOOKING INTO THE RESTAURANT.

BUT AT THE SAME TIME, IF YOU'RE IN THE RESTAURANT, YOU DO GET THIS SORT OF LOVELY, YOU'RE A LITTLE BIT ELEVATED AND YOU'VE GOT THIS LOW PLANTING AROUND YOU. AND SO YOU SEE SORT OF JUST OVER THAT, THAT THERE IS A PARK OUT THERE YOU'RE NOT KIND OF SEEING DOWN INTO THE MEMORIAL. BUT WE'RE TRYING, AGAIN, ALWAYS TO REINFORCE THIS COMPLEMENTARY RELATIONSHIP THAT STILL ALLOWS EACH SPACE TO OPERATE ON ITS OWN MEMORIAL EVENT ACTIVATION. WE UNDERSTAND THAT, OF COURSE, THE EVENTS THAT OCCUR AT THIS PARK ARE CRITICAL AND SUPER IMPORTANT TO THE COMMUNITY, THE PARK, AND FULFILLING A LOT OF ITS PURPOSE. AND SO UNDERSTANDING HOW THE RESTAURANT CAN ACTUALLY, AGAIN, SUPPORT THOSE AND GIVE PEOPLE A PLACE TO GATHER AND SPEND TIME TOGETHER ONCE THEY'VE ATTENDED OR BEEN A PART OF THOSE EVENTS, IS A WAY THAT WE'RE THINKING ABOUT THE FLOW KIND OF TO AND FROM AND AROUND THE PARK WITH THE RESTAURANT THERE. AND FINALLY, AGAIN, REINFORCING THAT THIS IS ABOUT COMPLETING A VISION AND SOMETHING THAT HAS BEEN SLATED FOR THIS PIECE OF LAND FROM THE BEGINNINGS OF THE BRICK AND MORTAR DISTRICT PLANNING. AND ALLOWING FOR THIS TO BE A REALLY POSITIVE, LOCAL, AUTHENTICALLY COMMUNITY ROOTED PLACE THAT PEOPLE CAN ENJOY AND GATHER IN, THAT BECOMES THIS THRESHOLD INTO THE DISTRICT AND A SORT OF LAUNCHING OFF POINT FOR DISCOVERING OR EXPLORING OTHER PARTS, INCLUDING THE PARK RIGHT NEXT DOOR. THESE ARE SOME NOTES WE'VE KIND OF ALREADY GONE OVER IN TERMS OF THE SURVEY THAT OCCURRED AND SOME OF WHAT WE'VE HEARD, JUST WANTING TO REINFORCE THIS ONE MORE TIME FROM THE SORT OF DESIGN OF THE BUILDING EXPERIENCE, FOLKS ARE REALLY EXCITED TO HAVE GOOD INDOOR OUTDOOR. AND AGAIN, HAVING WORKED IN ARCHITECTURE IN TEXAS, MY MOST OF MY CAREER, I KNOW IT'S ALL ABOUT SHADE. IT'S ALL ABOUT CEILING FANS. AND YOU CAN ACTUALLY MAKE GREAT SPACES THAT PEOPLE CAN ENJOY A LOT MORE OF THE YEAR THAN YOU'D THINK. AND IT MAKES IT SO MUCH EASIER THEN FOR A VARIETY OF PEOPLE TO COME ENJOY, RELAX, AND HAVE QUALITY TIME TOGETHER. WHEN THERE'S A VARIETY OF SEATING OPTIONS THAT ALSO LEVERAGE THE OUTDOORS, ESPECIALLY BECAUSE WE DO HAVE THIS BEAUTIFUL LOCATION TO TAKE ADVANTAGE OF THE IDEA THAT THIS IS A NEIGHBORHOOD FAVORITE THAT IS NOT A CHAIN RESTAURANT FROM OUTSIDE OF THIS AREA. IT IS SOMETHING THAT IS OF THIS, THIS PLACE AND FEELS LOCAL AND IS GOOD QUALITY, GOOD SERVICE, VERY CONSISTENT. THAT MAKES US REALLY EXCITED TO DESIGN AND PLAN FOR BRINGING A RESTAURANT ONLINE THAT DOES THOSE THINGS, RATHER THAN BEING SOMETHING THAT WOULD ALL FEEL GENERIC OR OTHERWISE LIKE IT DOESN'T. IT WASN'T MADE TO BE EXACTLY IN THIS SPOT. AND FINALLY, A BIG THEME WAS THAT THIS BE LOCAL AND HARMONIOUS WITH THE PARK AND THE DISTRICT. SO AGAIN, CUES FROM THE MATERIALS, CUES FROM SORT OF THE FLOW AND THE WAY THAT PEOPLE WILL WALK AROUND HERE AND REALLY SUPPORTING EVERYTHING THAT'S BEEN DONE AND THAT WE CAN CONTINUE TO, TO SEE GROW AND IN ACTIVITY HERE. SO WE'VE BEEN CONTINUING TO WORK ON THE CONCEPTS DESIGN. THIS IS ONE OF OUR NEW RENDERINGS THINKING ABOUT, AGAIN, THAT SORT OF VEGETATED BUFFER THAT REALLY WILL FRAME THE EXPERIENCE OF THE RESTAURANT. AND IT'S THE SITE REALLY LENDS ITSELF TO HAVING THE NOISIER PIECES LIKE THE BAR, ANY BACK OF HOUSE, ANY KITCHEN ON THE ROADWAY SIDE. SO THAT REALLY JUST THE DINING AREAS THEMSELVES, THE INDOOR AS WELL AS THE OUTDOOR CAN BE THE THINGS THAT OPEN GENTLY TO THE PARK WITHIN THAT BUFFERED AREA AND WITH AN APPROPRIATE SORT OF LEVEL OF PROGRAMING AND SPACE SO THAT IT, WHILE IT CAN BE A GREAT GATHERING SPACE AND A REALLY GREAT NEW PLACE FOR PEOPLE TO GO AND EAT, IT ISN'T SOMETHING THAT OVERWHELMS OR INVADES THE SPACE OF THE PARK. SO THIS IS JUST REINFORCING WHAT WE'RE DOING. I KNOW I'VE BEEN TALKING A LOT, SO I'LL JUST SORT OF LET YOU SEE THE BOLDED THERE. DESIGNING WITH CARE, MAKING SURE THERE'S ZONED AREAS AND THAT IT'S AUTHENTIC AND LOCAL. AND I'LL, I'LL LEAVE THIS TO ROSIE TO TAKE US HOME. THANK YOU, THANK YOU ASHLEY. SO USING THE FEEDBACK THAT THAT WE MAY HAVE TODAY, THE GOAL FOR FOR COMMON GROUND IS TO COME BACK AND TO CURATE A LIST OF POTENTIAL RESTAURANT PARTNERS, KNOWING THAT WE'RE GOING FOR THE UNIQUE AND LOCAL RIGHT. WE WILL WE ANTICIPATE, ACTUALLY THAT WE WOULD COME BACK AND PROBABLY VISIT WITH THE COUNCIL IN CLOSED SESSION ABOUT THAT, BECAUSE THIS IS PART OF A REAL

[01:45:05]

ESTATE TRANSACTION AND A NEGOTIATION THAT WE WOULD HAVE TO GET SOME FEEDBACK FROM YOU ON THE TYPES OF CONCEPTS THAT THAT ARE COMING FORWARD. AND, AND FROM THE PERSPECTIVE OF TRYING TO MAXIMIZE OUR OPTIONS, BECAUSE WE DON'T KNOW IF MAYOR KAIL WANTS TO EXPAND HER RESTAURANT RIGHT NOW OR OPEN A NEW RESTAURANT. WE WANT TO HAVE A VARIETY OF OPTIONS. SO WE'LL PROBABLY COME WITH, YOU KNOW, A MAYBE A 10 OR 12 CONCEPT LIST AND MAYBE TRY TO LEAVE WITH THE ONES THAT WE KNOW ARE OKAY AND MAYBE ONLY STRIKE A FEW SO THAT WE HAVE A GOOD FIELD OF POTENTIAL RESTAURANTS TO, TO PARTNER WITH AND TO NEGOTIATE WITH. SO WE WOULD ANTICIPATE DOING THAT AT, AT A COUNCIL MEETING POTENTIALLY IN APRIL IF WE CAN FACILITATE THAT. AND THEN AFTER WE GET SOME INPUT FROM COUNCIL IN CLOSED SESSION ABOUT THE POTENTIAL PARTNERS COMMON GROUND, WE'LL GO AND TRY TO TO START TO SECURE THE RIGHT FIT TO HELP COMPLEMENT THE ACTUAL RESTAURANT SPACE THAT WE WOULD HAVE AT HEROES MEMORIAL PARK. AND THEN WE WOULD CONTINUE ON MOVING THROUGH THAT PROCESS. SO THAT WOULD BE THE NEXT IMMEDIATE STEP. BUT WE CERTAINLY WANT TO HEAR FROM YOU GUYS ON ANY COMMENTS FOR WHAT YOU'VE HEARD OR QUESTIONS THAT YOU MAY HAVE, SO THAT WE CAN BE AS TRANSPARENT AS POSSIBLE. ALL RIGHT. ANY QUESTIONS? COMMENTS? NO. THIS IS OUR TIME BECAUSE I DON'T WANT THIS TO COME BACK AND BE LIKE, THIS IS NOT YOU GUYS ARE THE NEW KIDS ON THE BLOCK. I'VE ALREADY SEEN THIS. SO IT'S ALL ON YOU. DON'T SIT THERE AND BE QUIET. I THINK I THINK THERE IS A LITTLE BIT OF A CONCERN BECAUSE I'M TORN BETWEEN RESIDENTS OR LIKE, LEAVE IT ALONE. AND WE'VE ALREADY MADE THE DECISION THAT WE'RE GOING TO MOVE FORWARD. AND SO JUST THE THINGS THAT I SAW IN HERE I REALLY, REALLY LIKED, ESPECIALLY WITH LIKE THE DOG ON THE OUTSIDE, AND IT REMINDED ME OF HEY CITY STORE.

AND I THINK THAT IS A, A GREAT FIT FOR KYLE BECAUSE A LOT OF PEOPLE FROM KYLE GO OVER THERE AND I THINK, WHY DON'T WE HAVE THIS IN KYLE? SO THE MORE NATURAL LOOK LIKE THE YOU KNOW, I LIKE THE I LIKE THE FOLIAGE ON THE OUTSIDE. I LIKE THAT TOO. I WOULD SAY I HAVE, I SAW A LOT OF OUTSIDE AND I HAVE SOME CONCERN HOW WE'RE GOING TO KEEP THAT COOL BECAUSE I CEILING FAN WOULD HAVE TO BE IMPORTANT, BUT IT GETS REALLY, REALLY HOT AND SOMETIMES IT'S GREAT AND SOMETIMES IT'S NOT. BUT WHEN YOU HAVE THAT MUCH SEATING ON THE OUTSIDE, YOU DON'T WANT TO WASTE THAT. AND SO JUST COMING BACK WITH GOOD SHADING IDEAS. I KNOW SOMETIMES EVEN THE POP UPS DON'T WORK BECAUSE IF IT'S REALLY WINDY, YOU'LL HAVE TO PUT THEM DOWN. AND SO I'M SURE YOU HAVE NO IDEA. YOU HAVE ALL THE LIKE, I'M SURE YOU CAN FIGURE IT OUT. SO THAT'S MY ONLY COMMENTS AND FEEDBACK IS I LIKE THE, WHAT YOU GUYS SHOWED US. I LIKE THE IDEA OF EVEN HAVING THE DOGS. I THINK THAT'S SOME PEOPLE DON'T LIKE IT, BUT I LOVE IT. I THINK IT'S SUPER CUTE. SO. AND IT WORKS FOR OTHER PLACES. SO ANY OTHER FEEDBACK? COUNCILMEMBER OUT OF THE MILITARY AND HEROES THAT RESPONDED, WERE THERE ANY THAT WERE ADAMANTLY LIKE, I DON'T WANT THIS. THEY'RE LIKE, WHAT DOES THAT BREAK DOWN KIND OF LOOK LIKE? I DON'T KNOW, I DON'T KNOW THAT WE COULD DISSECT THE DATA TO. I'LL GO BACK AND LOOK AT HOW WE STRUCTURED THE SURVEY, BUT I DON'T KNOW THAT I CAN DISSECT THE DATA TO BE ABLE TO EXTRAPOLATE JUST RESPONSES FROM ONE OF THE SUBGROUPS, BUT I'M HAPPY TO GO BACK AND LOOK AND RESPOND. I KIND OF FEEL LIKE THEIR RESPONSES ARE A LITTLE BIT MORE IMPORTANT, BECAUSE THAT WAS REALLY DESIGNED TO CELEBRATE THEM. AND SO IF THEY REALLY FEEL LIKE HAVING A RESTAURANT, THERE ISN'T GOING TO BE INCORPORATED IN A WAY THAT, YOU KNOW, PRESERVES THE THE SOMBERNESS OF THAT SITE, THEN I FEEL KIND OF LIKE MAYBE WE NEED TO RETHINK IT.

UNDERSTOOD. COUNCILMEMBER HARRIS, THERE HAVE BEEN SOME DISCUSSIONS WITH VETERANS AND THEY HAVE MANY OF THEM HAVE SAID, WE WISH WE HAD SOMEPLACE TO GO THERE AT THE PARK THAT LENDS ITSELF TO LUNCHES, LENDS ITSELF TO PEOPLE GOING OVER THERE AFTER SERVICES THAT WE HAVE THERE, LIKE ALL THE VARIOUS MEMORIAL SERVICES WE HAVE THERE. SO WE HAVE GOTTEN A GOOD BIT OF FEEDBACK FROM THE VETERANS. I DON'T KNOW THE EXACT SURVEY, BUT I THINK THAT IN GENERAL, THEY'RE VERY SUPPORTIVE OF IT. AS LONG AS IT'S A ATMOSPHERE THAT INTEGRATES THE SOMBERNESS OF THE MEMORIAL. UNDERSTOOD. I DID HEAR SOMEONE SAY THEY DIDN'T WANT A GARBAGE. LIKE, WE DON'T WANT TO SMELL THE GARBAGE CAN. SO IF YOU CAN JUST MAKE SURE THAT I THINK THAT'S WHAT ASHLEY WAS TRYING TO, TO NICELY SAY WHEN SHE WAS TALKING ABOUT BACK OF HOUSE STUFF, ALL OF THAT WOULD BE ON THE STREET SIDE, NOT ON THE PARK SIDE. PERFECT.

OKAY. THANK YOU. THAT'S THE NICE WAY OF SAYING THE TRASH GOES OUT BY THE STREET. THERE IS ALWAYS THE CONCERN OF HAVING A ACTUAL BAR THERE BECAUSE OF WHAT COUNCILMEMBER GOES IS

[01:50:03]

SAYING YOU WANT TO BE ABLE TO. THAT'S HEROES MEMORIAL WAS DESIGNED FOR SPECIFICALLY THAT A MEMORIAL PARK. AND I THINK THERE WERE SOME CONCERNS ABOUT MAKING SURE WE DON'T HAVE A LOUD KIND OF DIVE BAR KIND OF SCENARIO WHERE PEOPLE GO AND YOU'RE SERVING ALCOHOL, AND OF COURSE, YOU'VE GOT A VETERAN SERVICES GOING NEXT DOOR, RIGHT? THAT WOULDN'T LOOK VERY GOOD.

SO BUT I DO KIND OF AGREE, LIKE WITH MAYOR FLORES SAYS SOMETHING LIKE LIKE WHAT? HEY, CITY STORE HAS LIKE THAT OUTDOOR VIBE, BUT NOTHING TOO LOUD AND NOT TOO, TOO CRAZY.

AND THEN TO WHERE PEOPLE, IF WE DO CONTINUE, LIKE WE'VE BEEN SAYING WITH OUR PARKS, PROMOTE MORE OF OUR VETERAN SERVICES, OUR MEMORIAL DAY OR NINE OVER 11, I STILL HOPE ONE DAY WE'LL GET, YOU KNOW, POLICE WEEK CEREMONY AT THE AT THE HEROES PARK ONE DAY AND THERE WHERE PEOPLE CAN JUST GO AND CONGREGATE RIGHT AFTERWARDS AND JUST HAVE, EVEN IF IT'S JUST A CITY RECEPTION OR JUST A RECEPTION FOR OUR POLICE OR VETERANS OR WHATEVER IT IS. SO WE HAVE HEARD THROUGHOUT THE CONVERSATIONS ABOUT THE CONCERNS ABOUT THE ROWDINESS OF THE BAR KIND OF ENVIRONMENT. AND I THINK THAT THE THE TEAM UNDERSTANDS THAT VERY WHOLEHEARTEDLY AND IS TAKING THAT INTO CONSIDERATION WITH HOW THEY'RE POSITIONING THE RESTAURANT AND WHERE THEY'RE POSITIONING THE BAR WITHIN THE RESTAURANT ITSELF. AND THAT IS ALSO A DESTINATION, THE PARK ITSELF, BECAUSE IF YOU GO THERE IN APRIL, MAY, YOU WILL SEE A LOT OF PEOPLE OUT THERE, A LOT OF KIDS TAKING THEIR PROM PICTURES OUT THERE, AND THEN YOU HAVE WEDDINGS AND OTHER STUFF AND YOU KNOW THAT THAT COULD KIND OF FIT INTO THAT AS WELL. OKAY. AND THEN, YES, I THINK YOU ALL CAPTURED THE IDEAS VERY CLEARLY AND MAKING SURE THAT IT'S A PLACE FOR EVERYONE. YOU KNOW, THAT MEANS ALL AGES, INCLUDING LITTLE ONES.

AND SO I'M SURE BECAUSE WE'RE TAKING THAT INTO CONSIDERATION, IT'S NOT GOING TO BE SOME ROWDY DIVE BAR. ALTHOUGH I, YOU KNOW, PERSONALLY, I'M LIKE, OH, THAT MIGHT BE KIND OF FUN, BUT NOT IN THAT AREA. NOT IN THAT, NOT IN THAT LOCATION. YES. AGREED. AND SO I THINK YOU ALL HAVE CAPTURED THAT PERFECTLY. AND, YOU KNOW, I JUST I KEEP ON THINKING ABOUT THE MCALLEN CONVENTION CENTER AND HOW THEIR MEMORIAL IS RIGHT NEXT TO THEIR CONVENTION CENTER, WHICH IS SURROUNDED BY BARS AND RESTAURANTS. AND IT'S ALSO AN AREA THAT KIDS DO GO TO FOR LIKE PROM PICTURES AND PEOPLE GO TO FOR LIKE WEDDING PHOTOS AND ENGAGEMENT PHOTOS AND WHATNOT. AND SO I THINK THAT SPEAKS TO THE FACT THAT A MEMORIAL SITE DOESN'T, ISN'T NECESSARILY ONLY A PLACE OF SOMBERNESS. IT'S ALSO A PLACE WHERE PEOPLE CELEBRATE THOSE FREEDOMS THAT VETERANS FOUGHT FOR AND WON FOR US. AND SO THE IDEA OF BEING ABLE TO ALSO APPRECIATE THAT BY ALSO GIVING PEOPLE THE REASON TO VISIT, THERE IS MAYBE PEOPLE WITHIN OUR COMMUNITY WHO'VE NEVER VISITED HEROES MEMORIAL PARK. BUT AS SOON AS WE BRING THIS RESTAURANT AND THEY HAVE THE GRADING AND WHATNOT, IT MAY CAUSE THEM TO ACTUALLY VENTURE INTO IT AND JUST BE CURIOUS AND, YOU KNOW, PAY RESPECTS OR AT LEAST JUST CHECK OUT, YOU KNOW, WHAT WE HAVE TO OFFER. AND SO I THINK THIS IS A REALLY GREAT IDEA. AND I, AND I WANT TO REITERATE THE SAME THING THAT'S BEEN SAID A MILLION TIMES. NO NATIONAL BRANDS, NO BOX CHAINS.

AND THEN I JUST HAD A QUESTION ABOUT WHAT OTHER GROUPS Y'ALL HAVE WORKED WITH JUST SO I CAN GET SOME IDEAS OF, OF KIND OF WHAT TO EXPECT IN TERMS OF DEVELOPMENT PROJECTS OR OTHER.

YES. SO WE'VE GOT, I GUESS BETWEEN THE THREE OF US, A VERY, VERY WIDE AND BROAD EXPERIENCE.

SO WE'VE DONE EVERYTHING FROM SINGLE TENANT RESTAURANT AND RETAIL BUILDINGS TO MIXED USE TO LARGE TARGET ANCHORED SHOPPING CENTERS. SO ALL OF THAT HAS BEEN HERE IN CENTRAL TEXAS. I'VE ALSO GOT EXPERIENCE WORKING AS A CONSULTANT TO RESTAURANTS, FOLKS LIKE TACO DELI AND KIRBY LANE. A LOT OF CONNECTIONS IN THE RESTAURANT COMMUNITY HERE. SO I WOULD SAY EVERYTHING FROM, YOU KNOW, THE CHAIN RESTAURANTS THAT I DON'T THINK ARE APPROPRIATE HERE TO REALLY GREAT LOCAL BRANDS. AND OUR ROOTS ARE ALL HERE IN CENTRAL TEXAS. OKAY. ALL RIGHT.

THANK YOU SO MUCH, COUNCILMEMBER HARRIS. I WHOLEHEARTEDLY AGREE THAT WE WOULD LIKE TO HAVE OUR LOCAL OWNERS FOR THE RESTAURANT. I DO UNDERSTAND THE RESTAURANT BUSINESS WITH THE SMALL LOCAL OWNERS. INTEREST RATES ARE HIGH. GETTING LOANS IS REALLY, REALLY TOUGH FOR THE SMALL OWNERS. I WOULD THINK THAT HOW WE SUPPORT THEM IN BEING ABLE TO AFFORD TO MOVE THERE, TO BE PART OF THAT IS GOING TO BE ABSOLUTELY CRUCIAL. YOU KNOW, I KNOW A LOT THAT, YOU KNOW, THEY DON'T HAVE DEEP POCKETS. YOU KNOW, THEY HAVE A LOT OF AMBITION MAYBE.

[01:55:02]

AND THEY HAVE CERTAINLY THE ABILITY TO RUN THIS RESTAURANT. BUT TO FINANCE IT IS A WHOLE NOTHER ISSUE. YEAH. WITH THAT SAID, CAN WE ALSO MAYBE INCORPORATE SOME FIRST RESPONDER STUFF WITHIN THE LIKE MURALS OR PICTURES OR SOMETHING, MAYBE EVEN LIKE THEY HAVE LIKE SOME LIKE, I DON'T KNOW IF THIS IS GOING TOO FAR, BUT LIKE, LIKE A HELP LINE, LIKE IN A NICE PLAQUE, LIKE IF YOU NEED ANY KIND OF ASSISTANCE, YOU KNOW, MENTAL HEALTH, I DON'T KNOW, I'M A BIG FAN OF THAT KIND OF SUPPORT, BUT INCORPORATING IT AND MAYBE SOME SIGNS OF LIKE WHERE THIS PLACE IS A LITTLE BIT MORE QUIET THAN THIS PLACE. BECAUSE WHEN YOU DO, I DO. I MEAN, THIS PARK WAS KIND OF KIND OF THROWN TOGETHER. AND I REMEMBER WHEN MAYOR PRO TEM TOBIAS SAID, WAIT, WE'RE TALKING ABOUT A MEMORIAL PARK. LIKE THOSE ARE JUST KIND OF TWO DIFFERENT VERY THINGS. AND SO TRYING TO KEEP THE IDEA OF A PARK AND A MEMORIAL, I THINK IS GOING TO BE KIND OF THE TRICKY PART. BUT IF IF ANYBODY CAN DO IT, I'M SURE IT'S YOU GUYS AND MAKING, YOU KNOW, ONE AREA MAYBE CLOSER TO THE PARK THAT HAS SIGNS LIKE PLEASE BE, YOU KNOW, BE AWARE OR, YOU KNOW, BE RESPECTFUL. AND THEN THE OTHER SIDE WHERE IT CAN BE A LITTLE BIT, I DON'T KNOW HOW THAT COULD WORK, BUT I DO, I DO APPRECIATE YOU GUYS BRINGING THIS. I LOVE THE IDEAS AND I AM LOOKING FORWARD TO THE NEXT STEP. ALL RIGHT. OKAY. COUNCIL MEMBER GARZA SO IS THIS SUPPOSED TO BE LIKE WE DO THE GROUND LEASE AND THEN THE RESTAURANTEUR COMES IN AND DOES ALL THE BUILD OUT OF THE BUILDING OR KIND OF WHAT DOES THAT FINANCING FOR THIS PROJECT LOOK LIKE? IF THERE'S ANY INVOLVED FROM THE CITY, WE WOULD BE. SO WE WOULD BE DEVELOPING AND OWNING THE BUILDING LONG TERM. AND THEN THE RESTAURANT PARTNER WOULD WOULD BE LEASING THE BUILDING. OKAY, SO THE CITY IS NOT PARTAKING IN THE BUILDING OF IT. LIKE THAT WON'T BE A FINANCIAL COST TO US. OKAY. I THINK THERE WILL BE DEPENDING ON WHERE WE LAND WITH A TENANT, THERE MAY BE IN SOME INCENTIVE PACKAGE THAT WE COME BACK AND ASK FOR. BUT THE COST OF BUILDING THE BUILDING AND FINANCING THE RESTAURANT BUILDOUT AND ALL THAT IS BORNE BY US. OKAY. THANK YOU. WELL, THAT'S INSIDE OF TOURS, RIGHT? SO I'M HOPING WHATEVER, WHATEVER INCENTIVE CAN COME SHOULD USUALLY COME FROM THE DEVELOPER BECAUSE THE CITY ALREADY INCENTIVIZES BY PLACING IT IN A TOURS. DOES THAT MAKE SENSE? SOMETIMES WE WOULD DO THAT. WE WOULD LIKE. AND SO YOU HAVE A COUPLE LAYERS, RIGHT? YOU HAVE A TOURS, YOU HAVE A DEVELOPER AND YOU HAVE THE CITY. SO THE TOURS IS ONE PART OF IT, RIGHT? AND THAT'S, THAT'S AN INCENTIVE. AND THEN THE DEVELOPER SHOULD BE INCENTIVIZING TOO. AND THEN, I MEAN, IF THE CITY INCENTIVIZES, THAT'S GOT TO BE YOU GOT TO BRING US SOMETHING REALLY GREAT. AND WE DO HAVE, I MEAN, WITHIN OUR, OUR INCENTIVE POLICY THAT WE'RE WORKING ON REVAMPING IN ECONOMIC DEVELOPMENT. WE DO HAVE RESTAURANT INCENTIVES THAT ARE PART OF THAT. SO THAT WOULD BE A PLACE THAT WE WOULD BE LOOKING AT TO SEE IF THERE'S, THERE'S AN INCENTIVE PACKAGE THAT THAT IS ALREADY, YOU KNOW, FRAMED OUT IN POLICY. THERE'S A LOT OF WAYS TO APPROACH IT. WE'LL BRING YOU LOTS OF OPTIONS DEPENDING ON WHAT WE COME BACK WITH, BUT THERE'S DEFINITELY LOTS OF OPTIONS ON THE TABLE THAT WE'LL HAVE. ALL RIGHT.

[VII) Consent Agenda]

PERFECT. THANK YOU SO MUCH. THANK YOU. NEXT WE HAVE CONSENT AGENDA. THANK YOU. MR. THANK YOU. ASHLEY. DOES ANYBODY HAVE ANYTHING THEY WANT TO PULL? NO. EVERYBODY'S GOOD. ALL RIGHT.

AND I'M GOING TO PULL SIX, 13 AND 14. ANYBODY ELSE. SO 579. TEN 1112. 1314. I'M JUST GETTING IT ALL. OKAY. I'D LIKE TO MAKE A MOTION TO APPROVE AGENDA ITEMS 579 1011, 12 SECOND. ALL RIGHT. I HAVE A MOTION BY MYSELF. SECOND BY COUNCILMEMBER ZAPATA. ALL IN FAVOR, SAY AYE. AYE. ALL OPPOSED? OKAY. MOTION PASSES 6 TO 0. ALL RIGHT. I HAVE PULLED

[6) Consider approval of a resolution authorizing the City Manager to lease a 2026 Ford F-150 for emergency management from Enterprise Fleet Management, Inc.'s Master Services Agreement in the amount of $8,560.56 in fiscal year 2026 with a total lease cost of $68,484.48 through fiscal year 2030.]

AGENDA ITEM SIX. CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE CITY MANAGER TO LEASE A 2026 FORD F-150 FOR EMERGENCY MANAGEMENT FROM ENTERPRISE FLEET MANAGEMENT, INC. MASTER SERVICE AGREEMENT IN THE AMOUNT OF $8,660.56 IN FISCAL YEAR 2026, WITH A TOTAL LEASE COST OF 68,484 AND $0.48 THROUGH FISCAL YEAR 2,030% A YEAR. NOT CHIEF BARNETT. OH NO.

HE HELPED PREPARE THE FINANCIAL SIDE OF THE REPLACEMENT. ALL RIGHT. GO AHEAD. I THOUGHT, WOULD YOU LIKE ME TO GO THROUGH THE PRESENTATION? SURE. GO AHEAD. ALL RIGHT. SO WE'LL GIVE YOU GUYS A LITTLE. OR FOR THE RECORD, MY NAME IS JOSHUA CROWLEY. I'M THE ASSISTANT DIRECTOR FOR FINANCE. TODAY WE'RE GOING TO TALK ABOUT THIS THE POLICE VEHICLE. SO LOOKING

[02:00:02]

AT THE BACKGROUND, THIS TRUCK IS NECESSARY FOR OUR EMERGENCY MANAGEMENT OFFICIAL. THE IDEA IS THAT HE CAN COORDINATE INCIDENT RESPONSE, VISIT SITES, ENSURE THAT EVERYBODY IS READY AND CAPABLE FOR DEPLOYING TO EMERGENCIES. THE VEHICLE IS EQUIPPED WITH SPECIALIZED SUPPLIES SUCH AS COMMUNICATION GEAR AND OTHER CRITICAL RESPONSE TOOLS TO ENSURE EFFECTIVE OPERATIONS, AND STANDARD PATROL VEHICLES CANNOT REASONABLY SUBSTITUTE FOR THIS.

WE WOULDN'T WANT TO TAKE A VEHICLE OFF OF THE PURSUIT FOR THIS PURPOSE. THE UNIT ITSELF IS A 2026 FORD F-150. IT IS THE XLT 4X4. WE WANTED THE VEHICLE TO HAVE OFF ROAD CAPABILITIES SINCE THIS IS AN INCIDENT RESPONSE VEHICLE IN CASE WE WERE DEALING WITH SOMETHING LIKE A FLOOD OR ANYTHING SIMILAR TO THAT. YOU HAVE TWO OPTIONS TODAY FOR APPROVING THE RESOLUTION OR NOT APPROVING THE RESOLUTION, AND STAFF DOES RECOMMEND APPROVING THE RESOLUTION AND AUTHORIZING THE LEASE OF THIS TRUCK FOR EMERGENCY OPERATION PURPOSES.

WE NOW STAND BY FOR QUESTIONS. ALL RIGHT. MY FIRST QUESTION IS, I THOUGHT THE CITY ALREADY HAD AN EMERGENCY SUV. YOU'RE RIGHT. I REMEMBER THAT WE BOUGHT SOMETHING LIKE A LAND ROVER.

GOT RID OF THAT. GOOD EVENING, MAYOR AND COUNCIL. I'M JEFF BARNETT, CHIEF OF POLICE. SO, AS YOU MAY RECALL, THE OFFICE OF EMERGENCY MANAGEMENT IS STAFFED AND FUNDED UNDER THE POLICE DEPARTMENT. SO IT'S A DIVISION WITHIN THE POLICE DEPARTMENT. YOU DO HAVE AN EMERGENCY MANAGEMENT COORDINATOR. THAT'S MR. JIMMY JOHNSON. HE SERVES IN THAT ROLE FULL TIME. HE'S BEEN WITH US FOR GOSH, TIME'S FLYING NOW, BUT HE'S WORKING ON A YEAR AND HE HAS A VEHICLE. SO YOU'RE ABSOLUTELY CORRECT. HE HAS A VEHICLE. IN OUR CURRENT BUDGET, THE CITY COUNCIL AUTHORIZED AND ASKED US TO FULFILL A SECOND POSITION WITHIN THAT OFFICE.

AND THIS IS IT MAY BE CALLED A PLANNER. IT'S AN EMERGENCY MANAGEMENT OFFICIAL THAT ASSISTS YOUR EMERGENCY MANAGEMENT COORDINATOR. AND THEIR JOB IS TO BE AN ASSISTANT TO MAKE SURE THAT THEY HAVE ALL THE EMERGENCY OPERATION PLANS IN PLACE FOR YOUR HAZARDOUS MATERIAL FACILITIES AROUND THE COMMUNITY, FOR THE HOSPITALS, THE SCHOOLS, PLACES WHERE WE MAY HAVE TO RESPOND, WHETHER IT'S A LOW LYING FLOOD ZONE AREA, PLACES THAT ARE PRONE TO FIRES. THIS PERSON WILL ALSO RESPOND JUST LIKE YOUR EMERGENCY MANAGEMENT COORDINATOR TO THE SCENE, AND PROVIDE AN EMERGENCY RESPONSE AND HELP WITH THAT CALL. THIS IS A VEHICLE FOR THAT POSITION. THAT POSITION IS AUTHORIZED EFFECTIVE APRIL THE 1ST, AS WERE MANY POSITIONS IN THIS YEAR'S BUDGET. SO WE'RE ASKING TO NOW GET A VEHICLE FOR THAT POSITION THAT BEGINS ON APRIL THE 1ST. AND WE ARE IN THE BACKGROUND PHASE OF SELECTING THAT PERSON FOR THAT POSITION. THIS IS TO GIVE THEM A VEHICLE TO USE WHEN THEY GET HERE. OKAY.

MY NEXT. GO AHEAD, COUNCIL MEMBER DARBY. I MEAN, MAYOR PRO TEM OKAY, SO I KNOW A LOT OF THESE LEASE VEHICLES, THEY HAVE SPECIFIC MILEAGE THAT THEY CAN GET TO ACQUIRE BEFORE WE TRADE THEM IN. CORRECT. WHAT WOULD BE THE MILEAGE ON THIS VEHICLE? BECAUSE I KNOW SOME YOU GOT TO GET UP TO LIKE MAYBE 85,000 IN CERTAIN AREAS, ESPECIALLY IF YOU'RE DOING REMOTE OR I THINK IT'S LIKE 110 AND THEN YOU ACTUALLY CAN TRADE IT IN. SO IS THIS GOING TO HAVE A CAP ON THE MILEAGE ON THAT? BECAUSE SINCE IT'S A LEASE VERSUS A PURCHASE, GREAT QUESTION. THIS WILL NOT HAVE A MILEAGE RESTRICTION ON THE VEHICLE. THIS VEHICLE IS A FOUR YEAR LEASE. WE THINK WE CAN GET THAT KIND OF LIFESPAN OUT OF IT. AND THEN WE COULD, IF WE USE OUR SAME TERMS WITH ENTERPRISE LEASE PROGRAM THAT WE CURRENTLY USE FOR OUR OTHER EMERGENCY VEHICLES, WE TURN THAT BACK IN. AND IF THERE IS A VALUE TO THAT VEHICLE, WHICH THERE LIKELY WOULD BE AT THE END OF FOUR YEARS, THERE WOULD BE SOME RESIDUAL VALUE THAT MONEY, IF COUNCIL AUTHORIZES, CAN BE ROLLED OVER INTO THAT NEXT REPLACEMENT VEHICLE. SO IF THIS VEHICLE LASTS US FOUR YEARS, REGARDLESS OF MILEAGE, MILEAGE IS NOT A KEY COMPONENT. THIS IS A FOUR YEAR LEASE. AT THE END OF THAT, IF WE HAVE LESS MILES, OBVIOUSLY THAT'LL HAVE A GREATER RETURN BACK TO THE CITY THAT YOU THEN USE ON THAT NEXT REPLACEMENT VEHICLE. SO HOPE THAT ANSWERS YOUR QUESTION, SIR. AND DOES IT ALSO, DOES THIS PRICE ALSO INCLUDE ANY KIND OF OUTFITTING IT DOES WITH LIGHTS, THE SIRENS, THE DECALS? I KNOW THE DECALS ARE HALF THE COST SOMETIMES OF THESE CARS THEY CAN BE. AND YES SIR, IT DOES INCLUDE THE RADIO EQUIPMENT, THE LIGHTING EQUIPMENT, THE. EVERYTHING THAT WE'RE GOING TO PUT IN OR ON THE VEHICLE. AND IT INCLUDES THE COST OF THAT UPFITTING. SO THAT CAN BE A LITTLE PRICEY TOO, WHEN YOU TAKE IT TO THE, TO THE LOCATION WHERE THEY'RE ACTUALLY GOING TO DO THAT INSTALLATION. SO IT INCLUDES ALL OF THAT.

OKAY, GREAT. THANK YOU MAYOR. COUNCIL MEMBER GARZA, IF YOU WERE TO PURCHASE THIS NEW WITH ALL OF THE OUTFITTING AND EVERYTHING, HOW MUCH WOULD THAT COST? I'M GOING TO. THIS IS A GUESS BECAUSE I'M NOT NECESSARILY AN EXPERT IN THAT MARKET. I'M GOING TO SAY IT'S SOMEWHERE VERY NEAR WHAT YOU'RE GOING TO PAY OVER THE FOUR YEARS, INCLUDING THE EQUIPMENT IN THE VEHICLE. I WOULD IMAGINE THAT THAT AS AN ENTERPRISE LEASE PROGRAM, THEY'RE GOING TO

[02:05:04]

HAVE A LITTLE BIT OF MONEY THAT THEY'RE GOING TO MAKE ON THE FACT THAT THEY'RE FINANCING THIS FOR US FOR FOUR YEARS. BUT I WOULD SAY THAT A FORD F-150, FOUR WHEEL DRIVE PICKUP, THIS IS KIND OF A MORE BASIC MODEL. IT'S AN XLT. SO IT'S NOT THE UPGRADED LEATHER PACKAGES AND ALL THAT. I WOULD IMAGINE THAT'S CLOSE TO 50,000. AND THEN YOU PUT IN YOUR EQUIPMENT ON TOP OF THAT. SO THEY'RE I DON'T KNOW THE NUMBERS, BUT I THINK THEIR, THEIR RETURN ON THAT INVESTMENT IS PROBABLY PRETTY SMALL. OKAY. AND THEN IS THIS A TRUCK THAT HE DRIVES HOME EVERY DAY? AND THEN IT DEPENDS. WE SO WE HAVE SOME MILEAGE RESTRICTIONS AND WE HAVE A TAKE HOME VEHICLE POLICY THAT THE CITY USES. SO IF IT'S APPLICABLE WITHIN THAT AND THE PERSON RESIDES, AND IF THEY'RE ASKED TO BE ON CALL AND TO RESPOND FROM HOME, WHICH WE CAN SEE THIS POSSIBLE POSITION DOING IT IS POSSIBLE AS LONG AS IT FITS WITHIN THE PARAMETERS OF THE CITY'S POLICY. OKAY. THANK YOU. YES, MA'AM. THAT'S KIND OF WHY I BROUGHT UP THE MILEAGE. YEAH, SURE. AND WE DO HAVE WE HAVE RESTRICTIONS ON THOSE MILEAGES FOR ALL TAKE HOME VEHICLES THROUGHOUT THE CITY ANYWAY, SO THEY WOULD HAVE TO LIVE WITHIN THOSE CONSTRAINTS. COUNCIL MEMBER ZAPATA, I THINK JUST I'M GETTING A LITTLE BIT CONFUSED BY THE NUMBERS HERE. IS THAT 68,480 FOR LIKE THE TOTAL THROUGH 2030 OR IS THAT PER YEAR. NO MA'AM. THAT SHOULD I'M GOING TO SPEAK FOR HIM AND TELL ME IF I'M WRONG. THAT SHOULD BE A TOTAL THAT WILL BE PAID OVER THE FOUR YEAR LEASE, INCLUDING THE EQUIPMENT AND THE INSTALLATION AND ALL FACTORS. THAT'S THE TOTAL THAT WE WILL PAY AT THE END OF THAT FOUR YEAR PERIOD. YOU SEE AN AMOUNT OF JUST UNDER 9000. IT'S 88,500. THAT'S PAYING FOR THAT VEHICLE FOR THE SIX MONTHS THAT ARE REMAINING IN THIS PARTICULAR BUDGET YEAR. AND THEN IT'LL HAVE 12 MONTHS EACH OF THE NEXT FEW YEARS, AND THEN IT'LL HAVE A PARTIAL SIX MONTH PAYMENT IN YEAR 2030 FOR A TOTAL OF THAT 68,000 AND CHANGE AT THE END OF 2030. WOULD IT BE LIKELY THAT WE WOULD HAVE TO RENEW THAT LEASE? GENERALLY, WHAT YOU COULD CONSIDER SEVERAL OPTIONS.

ENTERPRISE DOES OFFER A A BUY OPTION. YOU CAN PAY A CERTAIN AMOUNT OF MONEY AND PURCHASE THAT VEHICLE AND OWN IT, AND THOSE WOULD COST. THOSE NUMBERS ARE RELATIVELY LOW. IF YOU HAVE A LOT OF MILEAGE AND WEAR AND TEAR ON THAT VEHICLE, PERHAPS YOU DON'T WANT TO BUY IT. YOU DON'T WANT TO PUT IT IN THE FLEET FOR ITS MAINTENANCE COSTS, AND YOU TRADE IT BACK IN, FOR LACK OF A BETTER TERM. WITH ENTERPRISE, YOU YOU SELECT A REPLACEMENT VEHICLE, SO YOU'RE LEASING YET ANOTHER VEHICLE. AND WHATEVER VALUE YOU GET BACK OUT OF THAT VEHICLE, SAY THERE'S $10,000 LEFT OVER IN THE VALUE OF THAT VEHICLE. ENTERPRISE WORKS WITH THE CITY AND ROLLS THAT OVER INTO THAT FUTURE LEASE FOR THAT REPLACEMENT VEHICLE IN FOUR YEARS. WHAT'S THE REASON THAT WE JUST DON'T LOOK AT PURCHASING GENERALLY THE I BETTER LET HIM SPEAK TO THAT. I HAVE SOME IDEAS, BUT IT'S A LOT OF MONEY. JOSHUA AGAIN, NO, IT'S A VERY GOOD QUESTION. AND IT'S ONE THAT THE CITY'S BEEN LOOKING AT VERY CLOSELY. SO WE HAVE A FLEET PRESENTATION THAT'S GOING TO BE COMING TO YOU GUYS IN THE NEXT COUPLE OF MONTHS. AS YOU KNOW, THE CITY MANAGER HIRED A NEW FLEET MANAGER TO TRY TO LOOK AT THIS, AT LOOK AT OUR FLEET MANAGEMENT ACROSS THE CITY. AND ONE OF THOSE COMPONENTS IS LOOKING AT HOW WE WE MANAGE ALL OF THOSE VEHICLES. THE THE LEASE MODEL MAKES SENSE IN CERTAIN VEHICLES WHERE WE KNOW WE MAY BE PUTTING HIGH MILES ON THEM. AND WE DON'T NECESSARILY AREN'T GOING TO HOLD ONTO THE VEHICLE UNTIL THE WHEELS FALL OFF, WHERE WE KNOW THAT WE'RE GOING TO PROBABLY WANT TO CONTINUE TO REFRESH THOSE VEHICLES AT A AT A DECENT INTERVAL. AND SO THE IDEA OF THAT RELATIONSHIP WITH ENTERPRISE ALLOWS THE CHIEF TO ENSURE THAT THIS POSITION HAS A VEHICLE THAT'S OPERATING AND WORKING THAT TO BE ABLE TO HANDLE THESE EMERGENCY SITUATIONS. SO WE LOOKED AT IT AT THIS CASE BY CASE BASIS. WE WILL BE BRINGING A BROADER POLICY DISCUSSION TO CITY COUNCIL ON HOW WE MANAGE FLEET IN THE VERY NEAR FUTURE. OKAY.

I THINK IT WOULD HAVE JUST BEEN HELPFUL TO HAVE SEEN THAT COST COMPARISON IN THIS, EITHER THE SUMMARY OF THE MEMO OR IN THE PRESENTATION ITSELF, I THINK BECAUSE I'M STILL A LITTLE BIT UNCLEAR AS TO WHY IT WOULD BE NEGATIVE FOR US TO INVEST IN JUST PURCHASING THE VEHICLE OUTRIGHT. I THINK I UNDERSTAND THE IDEA OF LIKE THE WEAR AND TEAR AND US BEING ABLE TO NOT TAKE ON THE COSTS OF THAT OR THE MAINTENANCE, OR HAVING TO JUST GET A NEW VEHICLE MUCH MORE SOON. BUT I, YOU KNOW, AND I, I'M TRUSTING YOU ALL ON THAT. BUT I THINK TO ME, IT JUST DOESN'T MAKE SENSE WHY WE WOULDN'T JUST INVEST COUNCIL MEMBERS IF THERE'S, THERE'S ALSO A SECOND REASON, JUST LIKE JOSHUA SAID, THE FULL FLEET EVALUATION OF KIND OF A HYBRID MODEL OF WHEN WE USE THE ENTERPRISE MODEL VERSUS PURCHASE, CERTAINLY WE DO HAVE VEHICLES WITHIN THE CITY THAT WE HAVE PURCHASED AND THAT WE DO OWN, BUT ALSO FOR THIS ITEM SPECIFICALLY BECAUSE THIS WAS AN APRIL, AS THE CHIEF MENTIONED, AN APRIL ADD ON FTE WITH THE WITH THE VEHICLE, IT WASN'T BUDGETED IN THE BUDGET TO, TO BUY THIS OUTRIGHT. IT WAS BUDGETED AS A LEASE BASED ON THAT EVALUATION. OKAY. ALL RIGHT. THANK YOU. I'M GOING TO AGREE WITH COUNCIL MEMBER SABATA. I WISH WE WOULD BUY ALL THE CARS AND NOT LEASE THEM, ESPECIALLY IF WE'RE LOOKING TOWARDS DOING THAT ANYWAYS. IF WE'RE GOING TO PAY THE 68,000 OVER FOUR YEARS. I MEAN, I'M NOT WASTEFUL WITH MONEY, BUT I FEEL LIKE LIKE. I DON'T KNOW, I

[02:10:11]

JUST FEEL LIKE IF IT'S A NECESSITY THAT WE NEED FOR AN EMPLOYEE, I WOULD JUST BE MORE COMFORTABLE BUYING THAN LEASING. YEAH, I THINK IT'S A GOOD CONVERSATION. WE'VE TALKED ABOUT IT INTERNALLY, EXTENSIVELY, AND YOU'RE GOING TO NEED A COMBINATION OF THINGS TO, TO, TO MANAGE THE FLEET AND TO TRANSITION TO A FULLY OWNED FLEET OVER TIME, JUST TO DO DUE TO THE DOLLARS THAT ARE INVOLVED, THERE WILL BE A COMBINATION OF PROBABLY LEASES, SOME SHORT TERM DEBT THAT WILL BE ISSUED FOR VEHICLES, AS WELL AS CASH FUNDING THAT WILL NEED TO GO FORWARD FOR VEHICLE PURCHASES, AS WELL AS REPLACEMENTS THAT WE HAVE COMING THROUGH THE FLEET. THIS ONE, THERE'S JUST AN URGENCY ASSOCIATED WITH IT. WE FEEL LIKE THIS ONE'S A PRETTY CLOSE CALL ON LEASE VERSUS BUY BECAUSE OF THE FACTORS THAT HAVE BEEN DISCUSSED. WE RECOMMEND THE LEASE BECAUSE OF THE NATURE OF THE VEHICLE AND THE TYPE OF USE THAT IT'S GOING TO HAVE, AND IT WILL BE REFRESHED AFTER FOUR YEARS. BUT CERTAINLY ON A LOT OF THOSE OTHER POINTS, YOU'RE GOING TO GET A RECOMMENDATION WHEN IT WHEN THE FULL ANALYSIS COMES FORWARD FOR HOW DO WE MANAGE THE FLEET? THERE'LL BE A MIXTURE OF THINGS THAT WE RECOMMEND, SOME ANNUAL FUNDING THAT WILL BE PUT INTO A PROGRAM EVERY YEAR FOR REPLACEMENTS AND, AND NEW VEHICLES, AS WELL AS SOME DEBT, SOME LEASE BASED ON THE TYPE OF VEHICLES THAT WE'RE HAVING, YOU'RE GOING TO NEED ALL THREE OF THOSE COMPONENTS TO REALLY HAVE THE NUMBER OF VEHICLES THAT ARE REALLY GOING THROUGH THE FLEET. THERE'S NO WAY TO CASH FUND ALL OF THE VEHICLES NEEDS THAT WE HAVE. WE JUST DON'T HAVE THE FINANCIAL CAPACITY TO DO THAT. OKAY. WITH THAT, I'D LIKE TO MAKE A MOTION TO APPROVE AGENDA ITEM SIX.

SECOND, I HAVE A MOTION BY MYSELF, SECONDED BY COUNCIL MEMBER SPADA. ALL IN FAVOR, SAY

[8) Consider approval of a contract with Viking Construction, LLC, through the City of Grand Prairie cooperative purchasing program, for the 2026 Microsurfacing Project in the amount of $1,258,752.29, plus a 3% contingency in the amount of $37,762.57, for a total contract amount of $1,296,514.86.]

AYE. AYE. ALL OPPOSED? PASSES 6 TO 0. UP NEXT, WE HAVE AGENDA ITEM EIGHT. CONSIDER AN APPROVAL OF A CONTRACT WITH VIKING CONSTRUCTION LLC THROUGH THE CITY OF GRAND PRAIRIE COOPERATIVE PURCHASING PROGRAM FOR THE 2026 MICROSOFT MICRO SURFACING PROJECT IN THE AMOUNT OF 1,258,752 AND $0.29, PLUS A 3% CONTINGENCY IN THE AMOUNT OF $37,762.57, FOR A TOTAL CONTRACT AMOUNT OF 1,296,514 AND $0.86. ITEM PRESENTER LEON, LET ME GO THROUGH THE PRESENTATION. DO YOU WANT HIM TO KNOW? OKAY. ALL RIGHT. WELL, HELLO. WELCOME. SO I JUST HAD A FEW QUESTIONS. SO I THINK I'M A LITTLE BIT CONFUSED AS TO WHY THIS IS GOING THROUGH THE CITY OF GRAND PRAIRIE. AND IT WAS APPROVED IN 2018, BUT NOW WE'RE TAKING IT ON AS A 2026 MICRO SURFACING PROJECT. SO IF I COULD JUST AND THE STAFF MEMO WASN'T TOO CLEAR ON HOW IT CAME ABOUT AND IS NOW HAPPENING EIGHT YEARS LATER, SO IF I COULD JUST GET SOME BACKGROUND INTO THAT, BACK IN 2018, WE DISCOVERED THAT THE GRAND PRAIRIE HAD A CONTRACT FOR MICRO SURFACING, AND AT THAT POINT IN TIME, WE DECIDED TO PIGGYBACK ON THEIR CONTRACT.

AND SO WE ENTERED INTO A WITH GRAND PRAIRIE COUNCIL APPROVED AT THAT TIME. SINCE THAT TIME, THEY'VE RENEWED THEIR CONTRACT AND WE CONTINUE TO PIGGYBACK ON THAT CONTRACT. THERE'S NOT MANY VENDORS THAT DO THIS TYPE OF WORK. THERE'S TWO VENDORS THAT I KNOW OF. ONE IS FROM OUT OF STATE, AND THERE'S ONE THAT'S LOCAL THERE IN WACO, I BELIEVE. SO RATHER THAN TRYING TO GO OUT FOR BIDS AND SINCE THEY WERE GETTING GOOD PRICES, BECAUSE TYPICALLY IT WAS AROUND $3 TO $4 A SQUARE YARD, THE OTHER COMPANY, WHENEVER THEY DID BID ON OUR PROJECTS BACK IN 2014, 2015, THEY WERE ALWAYS HIGHER. SO WE SAID WE MIGHT AS WELL JUST GO WITH THE LOCAL VENDOR IN THE STATE AND USE THEIR PRODUCT. AND AS TIME HAS GONE ON, GRAND PRAIRIE HAS RENEWED THEIR CONTRACT WITH THEM. AS A MATTER OF FACT, THE CONTRACT IS OVER THIS YEAR. THEY'RE GOING TO HAVE TO RENEW IT AGAIN OVER THIS NEXT YEAR. SO THAT'S THE REASON WE'VE CHOSEN TO GO WITH THE MICRO SURFACING WITH VIKING CONSTRUCTION. OKAY. AND HOW DID WE GO ABOUT CHOOSING THE LOCATIONS FOR IT, ABOUT WHERE THE MICRO SURFACING IS GOING TO TAKE PLACE? BACK IN 23, WE DID A STUDY TO LOOK AT ALL OUR STREETS. WE HAD A CONSULTANT COME OUT AND SCORE SOME OF OUR ROADS. THE SCORES WERE GO FROM 0 TO 100. 100 WAS YOUR PERFECT ROAD. ZERO IS JUST A REALLY, REALLY, REALLY BAD ROAD. BUT WE WERE OUR AVERAGE SCORE WAS 82.5. THAT IS A DARN GOOD NUMBER, 82.5 AVERAGE FOR OUR STREETS. OTHER CITIES WOULD BE LUCKY TO HAVE THAT KIND OF A SCORE. BACK IN JULY OF 24, WE MADE A PRESENTATION TO COUNCIL AND WE BASED ON THAT STUDY, AND NOT ONLY DID THEY TELL US YOU NEED TO HAVE 2.2.8 $8 MILLION TO KEEP THAT SCORE OF 82.5, COUNCIL SAID, THAT'S WHAT WE WANT AND THAT'S WHAT WE WANT YOU TO DO. SO THAT'S WHY YOU SEE THE $1 MILLION FOR RESURFACING. AND PUBLIC WORKS HAS 1.88 MILLION IN THEIR BUDGET FOR OVERLAYS. SO THAT'S A 2.88 THAT WE THAT WAS RECOMMENDED BY THE CONSULTANT.

THAT SHOULD KEEP US AT THAT 82.5 SCORE. IN ADDITION, PUBLIC WORKS ASKED FOR ANOTHER 300,000 FOR CRACK SEALING. THEY DID THE CRACK SEALING FOR US THIS LAST YEAR, AND WE'RE GOING TO GET

[02:15:01]

THE CONTRACTOR TO DO IT THIS YEAR. SO THAT'S WHY YOU SEE A $1.3 MILLION CONTRACT WITH THE VIKING TO DO THE CRACK SEALING AND THE MICRO SURFACING AND PUBLIC WORKS, AND AGAIN, HAS THAT 1.88 IN THEIR BUDGET TO CONTINUE DOING MILLING OVERLAYS, SILCOATES, THAT KIND OF THING.

THAT AS PART OF THAT STUDY, THEY ALSO GAVE US A FIVE YEAR LIST. THEY SAID, HERE'S A FIVE YEAR LIST WE RECOMMEND THAT YOU LOOK AT AND THAT YOU USE TO PLAN YOUR WORK FOR THE NEXT FIVE YEARS. SO EVERY YEAR, LIKE WE DID LAST YEAR, WE TAKE THAT LIST, WE LOOK AT IT, AND THEN WHAT WE TRY TO DO IS WE GROUP THOSE STREETS. WE WANT THE CONTRACTOR TO GET IN AND GET OUT. SO WE TRY TO GROUP THOSE STREETS. BUT THE OTHER THING WE LOOK AT IS TRYING TO SPREAD IT OUT THROUGHOUT THE CITY, BUT DON'T JUST WANT TO JUST FOCUS ON ONE AREA OF TOWN. SO WE DO SPREAD IT OUT. THE BIGGEST THING THAT I LOOK FOR IS OUR ARTERIALS AND COLLECTORS. IF I SEE ANY KIND OF STRESSES OR DESTRESSES ON THOSE ROADS, I WANT TO MAKE SURE WE COVER THOSE ROADS AT, FOR EXAMPLE, BENTON CREEK AND LIMAN ARE ON THAT LIST RIGHT NOW. I'M SEEING SOME DISTRESSES IN THOSE ROADS. WE NEED TO COVER THOSE UP NOW. IF YOU LOSE THOSE ROADS, WE'VE LOST THE BATTLE. SO WE'VE GOT TO KEEP THOSE MAJOR ARTERIALS AND COLLECTORS IN GOOD SHAPE.

DOES THAT HELP? YES. AND THAT JUST BRINGS ABOUT MORE QUESTIONS AND MORE CONCERNS IN THAT SCORING. WAS THERE AN EQUITY PART OF THAT TAKEN INTO CONSIDERATION? BECAUSE IF YOU'RE SCORING ON A SCALE OF 1 TO 100, I ASSUME THERE'S LIKE A RUBRIC THAT'S BUILT IN OR SOME SORT OF MATRIX. AND I JUST WONDER IF THERE WAS LIKE EQUITY CONSIDERED. IN ADDITION TO THAT, WAS THERE A BELL CURVE IN THE SENSE THAT THERE WERE A HIGH NUMBER OF REALLY WELL SCORING ROADS THAT HAPPENED IN CERTAIN AREAS IN COMPARISON TO OTHERS? AND SO THOSE ARE JUST DRAGGING OUR SCORE UP WHEN WE ACTUALLY DO HAVE A LOT OF ROADS THAT SCORED A LOT LOWER. I GUESS I JUST NEED MORE INFORMATION BECAUSE IF I'M LOOKING AT WHERE THE PROPOSED MICRO SERVICING IS AT, I MEAN, I JUST DROVE ON ON SAMSON AND MCGARRITY TODAY AND I, AND NOW THAT I'M LOOKING AT THIS, I WAS LIKE, WHY ARE WE DOING THAT WHEN THERE'S A CRAP TON OF ROADS ON THE EAST SIDE THAT WOULD BENEFIT MORE FROM THIS? AND SO I THINK IF I COULD JUST GET SOME SORT OF BETTER EXPLANATION AS TO HOW WE CHOSE THESE, AND IF WE DID SO IN AN EQUITABLE MANNER, WE'RE TRYING TO KEEP THE GOOD ROADS IN GOOD SHAPE. FOR EXAMPLE, YOU DON'T NEED TO CHANGE THE OIL IN YOUR CAR IF YOU DON'T WANT TO, BUT YOU CHANGE THE OIL BECAUSE YOU NEED TO CHANGE OIL TO KEEP IT MAINTAINED PROPERLY. SAME THING AS WITH THE HOUSE WHEN YOU'RE PAINTING IT, DO YOU HAVE TO PAINT IT EVERY 3 TO 5 YEARS? IT DEPENDS. IT DEPENDS ON HOW BAD IT'S DETERIORATING. AND THAT'S WHAT YOU'RE SEEING WITH THESE ASPHALT ROADS. THEY'RE STARTING TO CRACK OPEN. YOU GET SOME MINOR DISTRESSES IN THOSE ROADS. WE'RE TRYING TO COVER THOSE UP BEFORE THEY GET WORSE. RIGHT NOW IT'S $4 A SQUARE YARD. IT COULD END UP 50 TO $100 A SQUARE YARD TO FIX THOSE ROADS.

SO OUR FOCUS WITH THIS PARTICULAR PROCESS IS JUST TO KEEP THEM MAINTAINED AS BEST AS WE CAN. THIS IS ONE PROCESS THAT'S BEEN USED THROUGHOUT THE STATE OR CITIES, WHATEVER.

THERE'S SEVERAL OTHER PROCESSES YOU CAN USE TO, FOR EXAMPLE, SEAL CODES. THERE'S A DIFFERENT PRODUCTS THAT ARE PUT OUT THERE BY EVERYBODY FOR FOR MOTIONS THAT YOU CAN DO THIS TYPE OF WORK WITH. BUT IN THIS CASE, WE'RE TRYING TO KEEP THE GOOD ROADS IN GOOD SHAPE BY DOING THAT WORK. SO THEY'RE NOT, IT'S NOT INTENDED FOR THESE ROADS THAT ARE IN WORSE CONDITION. SO TYPICALLY AROUND 70 SCORE OR ABOVE, WE TRY TO DO THAT PARTICULAR TYPE OF MAINTENANCE.

OKAY. I THINK I JUST HAVE REALLY BIG CONCERNS WITH THE LARGE INEQUITIES THAT WE ALREADY SEE AND KNOW EXIST. AND IF I'M THINKING ABOUT THE IDEA OF IT BEING LIKE A VEHICLE, RIGHT? AND MAINTENANCE IT, IF I OWN TWO VEHICLES AND I KEEP ONE AND I NEED BOTH OF THEM, BUT I KEEP ONE REALLY NICE AND PRIM AND PROPER, AND I LET THE OTHER ONE JUST KIND OF SIT THERE AND DEPRECIATE AND DEPRECIATE IN VALUE. AND I NEVER REALLY PAY ANY ATTENTION TO IT, THEN THAT'S NOT GOOD EITHER. IT'S BETTER THAT I ACTUALLY PAY INTO IMPROVING THAT VEHICLE. THAT'S A LITTLE BIT, YOU KNOW, NEEDS THE HELP. SO THAT WAY IT DOESN'T CONTINUE TO DEPRECIATE IN VALUE AND THAT I CAN ACTUALLY USE IT. AND SO I JUST, I HAVE SOME JUST MAJOR CONCERNS WITH THAT. I, I UNDERSTAND THE IDEA OF WANTING TO KEEP OUR GOOD ROADS, YOU KNOW, WELL MAINTAINED, BUT I ALSO UNDERSTAND THAT WE DO HAVE LARGE PORTIONS OF THE CITY THAT NEED MAINTENANCE, PERIOD, JUST POINT BLANK. AND SO I'M NOT SURE IF THERE'S SOMETHING THAT WE CAN DO TO BALANCE OUT. AND LIKE, I WOULD APPRECIATE LOOKING AT THAT STUDY AGAIN AND MAYBE REVIEWING THAT MATRIX. THERE REALLY WASN'T A MATRIX. WHAT THEY DID IS THEY TOOK THESE LASERS OFF THIS TRUCK AND JUST MEASURED OVER THE CRACKS AND ALL THE FAILURES AND POTHOLES, WHATEVER. THAT'S ALL THEY DID. THAT'S ALL THEY LOOKED AT WHEN THEY LOOKED AT THE ROAD. THERE WAS NO DISCREPANCY ON WHETHER IT WAS EAST SIDE, WEST SIDE OR WHATEVER. BUT JUST TO LET YOU KNOW, WE DO HAVE 1.88 THAT THE PUBLIC WORKS USES FOR MAJOR OVERLAYS. SO THAT'S THE OTHER PROCESS THAT WE USE. WE'RE SPENDING PART OF IT ON ROUTINE MAINTENANCE AND THE REST OF IT ON THE MAJOR REPAIRS FOR OVERLAYS. SO THERE IS A BUDGET THERE FOR THAT. THIS IS JUST ONE PART OF THE OVERALL STREET MAINTENANCE PROGRAM. SO THIS IS, AS LEON TRIED TO INDICATE, KEEP THE STREETS THAT ARE AT A GOOD QUALITY LEVEL, KEEP THEM WHERE THEY NEED TO BE AND NOT ALLOW THEM TO DETERIORATE FURTHER. WE HAVE RECONSTRUCTION DOLLARS THAT ARE AVAILABLE AS WELL, AS WELL AS THE THE ROAD BOND PACKAGE AND OTHER SOURCES OF CAPITAL THAT WE USE FOR LOTS OF DIFFERENT PROGRAMS. SO ALL OF THOSE THINGS GO IN FROM THAT PCI STUDY, DETERMINE WHICH STREETS SHOULD BE IN WHICH PARTS OF THE PROGRAM FOR EITHER

[02:20:06]

REPAIR, YOU KNOW, MICRO SURFACING, WHICH IS A VERY MINOR TYPE OF OVERLAY DESIGNED TO PROTECT THE STREET AND WHICH ONES REALLY NEED TO BE RECONSTRUCTED. IF YOU GET DOWN BELOW AND I'VE FORGOTTEN WHAT THE NUMBER IS, MAYBE THE PCI IS 40 OR LESS. IT'S A COMPLETE RECONSTRUCTION OF THE ROADWAY. THERE'S NO POINT IN DOING SOME OF THE MAINTENANCE BECAUSE IT NEEDS TO BE RECONSTRUCTED. AND THAT WAS IN 2023, CORRECT. THAT THAT WAS WE DID THE STUDY. AS A MATTER OF FACT, WE'RE GOING TO COME BACK TO COUNCIL IN THE NEXT BUDGET AND ASK FOR OUR STREETS TO BE REVIEWED AGAIN. OKAY. WOULD IT BE POSSIBLE TO BECAUSE IF WE'RE TALKING ABOUT LIKE, OH, YOU KNOW, WELL, WE HAVE A PLAN TO GET TO THE OTHER ROADS LATER, COULD WE JUST INVERT THAT AND START WITH THE ROADS THAT MAYBE SCORED JUST RIGHT ABOVE A 40 AND GET TO WORK ON THOSE FIRST? YEAH. GOOD EVENING. MIKE TRIMBLE, DIRECTOR OF TRANSPORTATION, PUBLIC WORKS.

JUST TO SUPPLEMENT WHAT LEON SAYING, THE ANSWER IS YES, WE CAN LOOK AT THAT. AND WHAT WE'LL BE DOING IS LOOKING AT ALL OF OUR PROGRAMS, OUR STREET RECONSTRUCTION PROGRAM FOR STREETS THAT ARE IN REALLY BAD CONDITION. WE HAVE SEVERAL OF THOSE STREETS. WE'LL BE LOOKING AT OUR STREET MAINTENANCE PROGRAM. WE'RE DOING SOME OF THE MORE SUBSTANTIAL OVERLAYS AS WELL AS THE MICRO SURFACING. SO TO BRIAN'S POINT, THERE ARE DIFFERENT TREATMENTS FOR DIFFERENT CONDITIONS OF STREETS, BUT WE'LL BE LOOKING AT ALL OF THAT AND THEN COMING BACK TO TALK ABOUT HOW WE TREAT SOME OF THE THE ROADS THAT ARE IN WORSE REPAIR, BASICALLY. OKAY, I'LL LET OTHERS SPEAK IF THEY WOULD LIKE TO. AND YOU ALSO HAVE TO LOOK AT THE ENVIRONMENT ITSELF.

IF YOU GO ON WEST SIDE, KYLE, YOU GROWING UP HERE, YOU KNOW, YOU GOT A LOT OF BEDROCK. SO YOU HAVE A LOT OF THAT. THE STREETS ARE PRETTY MUCH LIKE YOU'RE SAYING ON YOUR END, PRETTY MUCH WHAT YOU GO ON EAST SIDE WHERE WE HAD ALL THE FARMS, LIKE WHERE WE JUST OPENED THAT UP IN 2019 AND IN 2020. AND HERE IT IS, WE'RE DOING THE CRACK SEAL BECAUSE IT'S RIGHT THERE BY THE HIGH SCHOOL. AND THERE IT'S IT'S LONGER STREETS VERSUS THE NEIGHBORHOOD STREETS THAT YOU SEE WEST OF KYLE. SO THESE ARE LONGER STRETCHES OF ROADS THAT HAVE A LOT HEAVIER TRAFFIC AND, YOU KNOW, HIGH VOLUME TRAFFIC. AND ALSO THAT'S ALL BLACK DIRT ON THAT END. SO IF ANYBODY'S BEEN TO THE EAST SIDE LATELY DRIVEN DOWN GO FORTH ROAD, YOU KNOW, IT'S A ROLLER COASTER WHEN YOU GO UP AND DOWN THE CURVES AND ALL THAT. RIGHT? SO I THINK A LOT OF IT HAS TO DO WITH THE TERRITORY AND THE TERRAIN, ESPECIALLY LIKE WINDY HILL, WHERE YOU HAVE ALL THOSE CURVES BECAUSE THOSE ROADS ARE FALLING APART QUICKER BECAUSE YOU HAVE A LOT OF THAT BLACK DIRT THAT'S OUT THERE VERSUS SOME OF THE BEDROCK THAT'S OVER HERE ON THIS SIDE OF TOWN. YEAH. ONE OF THE THINGS I'LL MENTION AND WE'VE BEEN TALKING ABOUT THIS TOO, IS THERE'S THERE'S ANOTHER INDEX CALLED THE IRI INDEX, AND THAT'S FOR ROUGHNESS. SO FOR EXAMPLE, SOME OF THE STREETS YOU'RE TALKING ABOUT ON THE EAST SIDE, WHERE THEY MAY HAVE, THEY MAY BE CURVING AS SWELLING BECAUSE OF THE SOILS. THE CONDITION ITSELF MIGHT ACTUALLY BE GOOD AND THEY MIGHT ACTUALLY SCORE HIGH ON THE PCI. AND SO WHAT WE'VE BEEN TALKING ABOUT IS TRYING TO COME UP WITH AN OVERALL CONDITION INDEX TO WHERE WE'RE FACTORING IN BOTH.

SO WE'RE TAKING IN THE ROUGHNESS INDEX AS WELL AS THE CONDITION INDEX, BECAUSE I THINK THAT GIVES US A TRUER MEASURE OF WHAT STREETS REALLY NEED TO BE ADDRESSED. BUT THEN WE CAN START TO MATCH THOSE WITH THE RIGHT TREATMENT THAT MAKES SENSE FOR THAT PARTICULAR ROAD. SO WE ARE LOOKING AT THAT. AND SO WE'RE STARTING TO PUT THAT INFORMATION TOGETHER. SO IS THERE ANY WAY WE CAN GET A COPY OF THAT REPORT THAT SHOWS THE DIFFERENT LEVELS? I THINK THAT WOULD HELP US CERTAINLY. AND JUST TO POINT IT OUT, AS MIKE MENTIONED, WE DID WHAT'S CALLED A I R I, THE INTERNATIONAL RIDE INDEX THAT MEASURES THE IN INCHES PER MILE, IT MEASURES HOW ROUGH THE ROAD IS, BUT THE MICRO SURFACE DOES NOT FIX THAT. IT WON'T FIX THAT.

THERE'S NO WAY THAT THAT CAN BE USED FOR THAT. YOU'RE GOING TO HAVE TO RECONSTRUCT OR TRY TO LEVEL IT UP AS BEST AS YOU CAN. THAT'S THE BEST YOU CAN DO IN THOSE TYPES OF ROADS, BUT THAT THE REPORT HAS ALSO, IT DOES SHOW US TWO MAPS. IT'S GOING TO HAVE TWO MAPS IN THERE. THERE'S ONE'S GOING TO SHOW YOU THE PCI AND THE NUMBERS THAT THEY GOT OFF THE PCI, AND YOU'RE GOING TO SEE THE I R I ON ANOTHER MAP. SO IT WILL SHOW YOU THAT IN THAT REPORT. ALL RIGHT. AND I THINK IT'S HELPFUL TO KNOW THAT THERE'S DIFFERENT FUNDS, RIGHT? SO THIS IS MICRO SERVICING. AND THEN THERE'S GOING TO BE ROADS THAT ARE GOING TO BE COMPLETELY REDONE. I WILL TELL YOU, WENDY HILL IS ONE OF THE BIGGEST ROADS THAT PEOPLE COMPLAIN ABOUT. SO AND I TRY TO, I TRY TO SUPPLEMENT WITH, HEY, THIS IS WHAT THE RUBIN'S TAKEN CARE OF. I'M GOING TO TAKE A DRIVE OUT THERE. I'M GOING TO SEE IT BECAUSE BECAUSE I THINK I, ALTHOUGH I DO RESPECT THESE REPORTS, WE DRIVE THEM EVERY DAY. AND SO SOMETIMES I THINK I KNOW POST OAK BY FAR ONE OF POST OAK AND WATERLEAF, ONE OF THE TWO WORST SUBDIVISIONS THAT I'VE EVER DRIVEN IN. AND MAYBE THEY SCORED. OKAY, I DON'T KNOW. BUT I WILL TELL YOU, IF IT WERE UP TO ME, THAT'S WHERE I WOULD LIKE TO SEE OUR DOLLARS GOING TO IN THESE AREAS JUST TO IMPROVE THE PEOPLE'S QUALITY OF LIFE. SO ANYTHING ELSE BEFORE WE MOVE ON? I GUESS JUST MY REQUEST WOULD BE THAT IN THE PLAN THAT YOU ALL BRING FORTH, IF Y'ALL COULD REALLY TAKE EQUITY INTO CONSIDERATION IN THAT, IN CREATING SOME SORT OF OFFSET, I THINK I WOULD REALLY APPRECIATE THAT JUST TO MAKE SURE THAT WE'RE NOT MAKING TREATING THINGS EQUALLY BECAUSE THAT'S DIFFERENT THAN MAKING THINGS EQUITABLE. SO YEAH, IF WE JUST CONSIDER THAT, IS THERE SOMETHING THAT WE CAN SOME

[02:25:02]

DIRECTION THAT WE CAN GIVE YOU TO HELP YOU GUYS MAKE IT EQUITABLE? BECAUSE I'M NOT SURE HOW YOU I KNOW, I KNOW EXACTLY WHERE SHE'S GETTING AT AND I AGREE, BUT HOW DO WE MEASURE THAT? COUNCIL MEMBERS, AS I MENTIONED, MAYOR AND COUNCIL MEMBERS, WE'RE COMING BACK WITH A BUDGET REQUEST IN THE NEXT YEAR'S BUDGET TO ASK FOR THE FUNDING OF A ANOTHER PAYMENT STUDY. SO WE CAN DO WE CAN TALK ABOUT IT AT THAT TIME AND MAKE SURE THAT WE GET WHAT WE WANT FROM THE CONSULTANT. OKAY. I WANT TO MAKE A MOTION. OKAY. MOTION TO APPROVE AGENDA ITEM NUMBER EIGHT. CONSIDER APPROVAL OF A CONTRACT WITH VIKING CONSTRUCTION, LLC THROUGH THE CITY OF GRAND PRAIRIE COOPERATIVE PURCHASING PROGRAM FOR THE 2026 MICRO SURFACING PROJECT IN THE AMOUNT OF $1,258,752.29, PLUS A 3% CONTINGENCY IN THE AMOUNT OF $37,670.57, FOR A TOTAL CONTRACT AMOUNT OF $1,296,514.86. SECOND. OKAY. I HAVE A MOTION BY COUNCILMEMBER ZAPATA AND A SECOND BY MAYOR PRO TEM TOBIAS. ALL IN FAVOR, SAY AYE. AYE. ALL OPPOSED? MOTION PASSES 6 TO 0. THANK YOU. ALL RIGHT, WE'RE MAKING

[13) Consider approval of an annual contract with Tangent Computer, Inc, through The Interlocal Purchasing System (TIPS) Purchasing Cooperative, for the purchase of Microsoft 365 licenses to support the administrative and operational needs of the City of Kyle in the amount of $174,790.28.]

PROGRESS, GUYS. OKAY, UP NEXT WE HAVE AGENDA ITEM 13. CONSIDER APPROVAL OF AN ANNUAL CONTRACT WITH TANGENT COMPUTER COMPANY INC THROUGH THE INTERLOCAL PURCHASING SYSTEM PURCHASING COOPERATIVE FOR THE PURCHASE OF MICROSOFT 365 LICENSES TO SUPPORT THE ADMINISTRATIVE AND OPERATIONAL NEED OF THE CITY OF KYLE AND THE AMOUNT OF $174,790.28. ITEM.

PRESENTER. MARCO. GOOD EVENING, MAYOR AND COUNCIL. MY NAME IS MARCO FORTI, DIRECTOR OF IT FOR THE CITY OF QOM. DID YOU WANT ME TO GO THROUGH THE PRESENTATION REAL QUICK? DO YOU HAVE A QUESTION SPECIFICALLY? IS IT VERY LONG? NO. SORRY, I LOOKED AT SOME. OKAY. GO AHEAD.

YES. OKAY. SO I'LL GO OVER THROUGH THE EXECUTIVE SUMMARY REAL QUICK. SO WHAT YOU HAVE BEFORE YOU TONIGHT IS A WE'RE SEEKING AN APPROVAL FOR AN ANNUAL CONTRACT TO RENEW OUR MICROSOFT 365 LICENSES. CURRENTLY, WE ARE ON A MONTH TO MONTH CONTRACT WITH ONE OF OUR VENDORS TO RECEIVE OFFICE 365 LICENSING. REALLY WHAT THIS ITEM IS, IS JUST TO MOVE US TO AN ANNUAL CONTRACT FOR COST SAVINGS. AND IT ALSO PREVENTS MARKUPS THROUGH THE MID-YEAR PRICING WHEN MICROSOFT, I BELIEVE IN JULY, THEY'RE GOING TO INCREASE THEIR LICENSING PRICES. SO WE'RE TRYING TO GET AHEAD OF THAT AS WELL. A LITTLE BIT OF BACKGROUND. SO MICROSOFT 365 IS BASICALLY ONE OF OUR MAIN, OUR MAIN FOUNDATIONAL COMPONENTS TO OPERATIONS FOR THE CITY. IT SUPPORTS 471 STAFF MEMBERS WITH EMAILS AND THAT THEY IS A NECESSITY FOR THEIR DAILY PRODUCTIVITY. IT COVERS MOBILITY AND COMMUNICATION AND ALSO PROVIDES SECURITY SERVICES SUCH AS SAFEGUARDING OUR CITY DATA WITH OUR SHAREPOINT. AND IT ALSO ALIGNS WITH COMPLIANCE STANDARDS AND ARCHIVING STANDARDS THAT WE NEED TO MEET IN TERMS OF REGULATIONS FOR THAT REALLY QUICK. IT DOES HAVE THREE MAJOR COMPONENTS IN OUR QUOTE AND IN OUR RENEWAL, IT COMPOSES OF OUR EMAILS FOR ALL OUR OUR STAFF MEMBERS. IT ALSO ABIDES BY SECURITY AND COMPLIANCE, HOW WE'RE PROTECTING OUR DATA AND HOW WE'RE ARCHIVING THAT DATA AND HOW LONG WE'RE KEEPING THAT RETENTION. AND IT ALSO INCLUDES ADVANCED TOOLS LIKE POWER BI FOR DATA ANALYTICS, COPILOT TO BE ABLE TO SEARCH THROUGH THAT DATA AND PROJECT MANAGEMENT.

LIKE I SAID, WE ARE ON A MONTH TO MONTH CONTRACT. REALLY, THIS IS JUST TO BRING FORWARD A ANNUAL CONTRACT. WE'RE GOING TO BE SAVING A 6% IN COST SAVINGS GOING ANNUAL. AND IT'S ALSO PREVENTS ANY MIDPOINTS SERVICE INCREASES WITH MICROSOFT. LIKE I SAID IN JULY, I THINK WE GOT WORD THAT PRICES FOR LICENSES WILL INCREASE BETWEEN 3013 TO 30% AND MICROSOFT LICENSING. SO YEAH, IT'S A BIG JUMP TOO. AND THEN OVER HERE IS BASICALLY AN OVERVIEW STRUCTURE OF OUR LICENSING OF WHAT WE CURRENTLY HAVE. SO E3 AND E1 IS BASICALLY OUR EMAILS. MOBILE SECURITY IS BASICALLY OUR DATA MANAGEMENT AND IDENTITY PROTECTION TEAMS AND ONLINE ARCHIVING. SO THE TOTAL AMOUNT TO GO ANNUAL IS GOING TO BE $174,790. WE DO HAVE OPERATING EXPENDITURES FOR THIS FOR THIS YEAR. AND SO OUR OPTIONS TODAY IS TO APPROVE THE CONTRACT FOR AN ANNUAL OR DECLINE THE CONTRACTS. ALL RIGHT. MY FIRST QUESTION IS WHY DO WHY DO WE HAVE TO. CAN'T WE JUST GO THROUGH MICROSOFT DIRECTLY AND GET THIS. WE DID EVALUATE THAT OPTION. SO MICROSOFT, IF YOU LOOK AT THEIR INDEPENDENT LICENSING, THEY CHARGE $36 PER USER PER MONTH.

AND IF YOU MULTIPLY THAT BY ALL OUR EMPLOYEES, 471, THAT COMES OUT TO OVER $200,000. CAN WE CALL THEM AND ASK FOR SOME KIND OF LIKE CITY DISCOUNT? YEAH. WITH GOING THROUGH MICROSOFT, THEY DON'T OFFER THAT. THAT'S WHY THEY DON'T THEY HAVE LIKE A REPRESENTATIVE THAT WE COULD

[02:30:01]

GET AHOLD OF, RIGHT? I MEAN, WE, I MEAN, I SAY THAT, BUT WE DO. AND WHERE I WORK, I AM NOT A FAN OF THE CO-OP AT ALL. AND WHEN I LOOKED UP THIS COMPANY, THE TANGENT COMPUTER COMPANY, INC. IT'S FORFEITED AT THE TEXAS SECRETARY OF STATE. SO MY QUESTION IS LIKE, IS IT RESPONSIBLE TO BE DOING A BUSINESS WITH THE COMPANY NOW THEY'RE FROM CALIFORNIA. SO BUT SEEING THAT THEY DON'T I MEAN, WHAT IF SOMETHING HAPPENED HERE IN TEXAS AND WE HAD TO LIKE SUE THEM? THEY'RE NOT LEGALLY ABLE TO CONDUCT BUSINESS IN THE STATE. SO THERE'S AN EXCEPTION FOR PURCHASES BEING MADE THROUGH INTERSTATE COMMERCE. SO IF THEY'RE NOT COMING IN HERE PROVIDING SERVICES IN TEXAS, THE ARGUMENT COULD BE THAT THEY'RE PROVIDING THIS PRODUCT THROUGH INTERSTATE COMMERCE, AND THEREFORE THEY'RE IN GOOD STANDING IN CALIFORNIA, SO THAT THAT'S THE MOST LIKELY EXCEPTION THAT'S GOING TO APPLY WITH THEM. AND I DID LOOK AND VERIFY THAT THEY WERE IN GOOD STANDING IN CALIFORNIA. I SAW THE SAME THING YOU SAW ABOUT THEIR TEXAS LICENSING. SO WHY DON'T WE JUST ASK THEM TO UPDATE THEIR STANDING AT THE SECRETARY OF STATE? BECAUSE ULTIMATELY, IF NOTHING HAPPENS, THEN NO BIG DEAL, RIGHT? BUT IF SOMETHING HAPPENS, THEN ARE WE HAVING TO GO DO EVERYTHING THROUGH CALIFORNIA? WELL, THE, THE, THE PURPOSE OF THE COOPERATIVE IS TO UTILIZE THE THE BIDDING PROCESS HAS BEEN DONE BY THAT COOPERATIVE TO GET PRICING THAT WE COULD OTHERWISE NOT GET. AND OR IF WE WERE TO GO OUT ON OUR OWN AND TRY TO BID THIS PARTICULAR SERVICE JUST FOR THE CITY OF KYLE, THE PRICING WOULD NOT BE AS ATTRACTIVE. BY USING COOPERATIVES LIKE THIS, YOU'RE ABLE TO GET BULK PRICING THAT YOU HAVE FOR MUCH LARGER ENTITIES THAT ARE USING IT. AND WHEN THE COOPERATIVES DO THESE PROCUREMENTS, THEY'RE GOING TO OPEN THE MARKETS FOR LOTS OF DIFFERENT ENTITIES, CITY ENTITIES AND LOCAL GOVERNMENT ENTITIES TO USE THAT PRICING.

THAT'S THE REASON TO USE THE CO-OP, NOT NECESSARILY TANGENT COMPUTER, BUT TO GET THE PRICING THAT'S THERE FROM THAT PROCUREMENT METHOD. THAT'S THE REASON TO DO IT. AND WE DID DO SHOPPING AROUND, RIGHT? SO WE DID LOOK AT OUR OPTIONS AND JUST GOING THROUGH MICROSOFT AND WHAT THAT COST WOULD BE. BUT WE ALSO DID GO THROUGH OTHER VENDORS OTHER THAN TANGENT TO SEE WHAT THE COMPARISON WAS. AND ROUGHLY, THEY WERE A LITTLE BIT HIGHER.

SOME OF THEM WERE A LITTLE BIT LOWER. BUT WHAT WE'RE GETTING WITH TANGENT IS WE GET A DEDICATED ANALYST AND A SECURITY ANALYST TO LOOK AT OUR COMPLIANCE STANDARDS WITHIN TEXAS AND MAKING SURE OUR POLICIES ARE OUR POLICIES ARE IN PLACE AND WE'RE MEETING THOSE STANDARDS. OKAY. I WOULD JUST LIKE TO HAVE SEEN MICROSOFT BE INVOLVED SOMEHOW.

I MEAN, THERE'S REPRESENTATIVES EVERYWHERE. SO JUST TO BE ABLE TO SEE THAT AND BE LIKE, HEY, WHAT ARE THE OTHER OPTIONS? YOU KNOW, IF I DON'T UNDERSTAND HOW THE CITY BECAUSE FIRST OF ALL, ARE WE PAYING TAXES ON THIS BECAUSE OUR CITY IS TAX EXEMPT? SO GOING THROUGH THE COMPANY DIRECTLY, I THINK WOULD MAKE MAKE IT EASIER TO DEAL WITH ALL THAT AS OPPOSED TO GOING THROUGH THE CO-OP. SO IF ANYBODY WANTS TO MAKE A MOTION, GO AHEAD, GO AHEAD. DID WE CHECK WITH DIR IN ORDER AS ONE OF OUR COMPARISONS? YES. THERE WAS A COMPANY CALLED DSI WHO IS UNDER TEXAS AIR. THEY GAVE US A LITTLE BIT OF A HIGHER QUOTE ON THIS. SO WHICH WAS THE REASON WHY WE WENT WITH TANGENT COMPUTERS. OKAY. YEAH, I THINK IT WOULD BE HELPFUL JUST IN THE FUTURE TO KIND OF SEE WHO ALL WE LOOKED AT BEFORE COMING TO THIS CONSENSUS. IT WOULD JUST KIND OF HELP US, I THINK, HAVE FEWER QUESTIONS. SO THANK YOU. ALL RIGHT. MOTIONS. I'D LIKE TO MAKE A MOTION THAT WE APPROVE ITEM NUMBER 13, THE ANNUAL CONTRACT WITH TANGENT COMPUTER THROUGH THE INTERLOCAL PURCHASING SYSTEM PURCHASING COOPERATIVE FOR THE PURCHASE OF MICROSOFT 365 LICENSES TO SUPPORT THE ADMINISTRATIVE AND OPERATIONAL NEEDS OF THE CITY OF KYLE. IN THE AMOUNT OF $174,790.28. SECOND. OKAY, I HAVE A MOTION BY COUNCILMEMBER HARRIS, SECOND BY COUNCILMEMBER ZAPATA. ALL IN FAVOR, SAY AYE. I OPPOSED NAY. ITEM PASSES 5 TO

[14) Consider approval of a resolution authorizing the City Manager to execute all documents necessary to purchase 1,026 SF (0.0236 AC) of right-of-way from Martina Diego for the eastern segment of the Bebee Road project, in an amount of $34,036.00, plus reasonable closing costs.]

1. ALL RIGHT. THANK YOU. UP NEXT, WE HAVE AGENDA ITEM 14. CAN APPROVAL RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS NECESSARY TO PURCHASE 1026FT■!S OF RIGHT F WAY FROM MARTINEZ DIEGO FOR THE EASTERN SEGMENT OF THE BB ROAD PROJECT IN AN AMOUNT OF $34,036 PLUS REASONABLE CLOSING COSTS. ALL I'M GOING TO ASK IS THAT FOR FUTURE. IF YOU COULD JUST ADD BRING BACK FINAL COSTS TO COUNCIL, THAT WOULD BE REALLY APPRECIATED. I WANT TO MAKE SURE THAT NOT ONLY US, BUT RESIDENTS HAVE A GOOD IDEA OF OF WHAT WE ARE PAYING. BECAUSE WHEN YOU TALK ABOUT REASONABLE CLOSING COSTS, IT REALLY DOESN'T GIVE US AN AMOUNT. SURE.

ADDED TO THE AGENDA LANGUAGE. YES, YES, I THINK WE COULD DO THAT. ABSOLUTELY. OKAY. YES.

OKAY. ALL RIGHT THEN. WITH THAT SAID, I'D LIKE TO APPROVE AGENDA ITEM 14. ALL RIGHT. I HAVE A MOTION BY MYSELF. SECOND BY MAYOR PRO TEM TOBIAS. ALL IN FAVOR, SAY I, I ALL OPPOSED

[02:35:02]

PASSES 6 TO 0. AND. ALL RIGHT, UP NEXT, ACTUALLY, WE'RE GOING TO PULL UP AGENDA ITEM 17.

MAYOR, IF I COULD REQUEST THAT WE PULL UP ITEM 16 AND 17, SINCE THOSE ARE ITEMS IN TANDEM.

[16) Consider approval of a resolution adopting the Utility Customer Assistance Program (UCAP) as a six-month pilot and approving the UCAP Framework and implementation plan.]

[17) (First Reading) Consider approval of an ordinance amending Chapter 50, Article II, of the City of Kyle Code of Ordinances to repeal and replace selected sections governing water and wastewater billing and enforcement, to update rules on deposits, penalties, payment procedures, and related policies to promote consistent service delivery, fairness to customers, and the long term financial sustainability of the City’s utility system.]

ALL RIGHT, I'M GOING TO PULL UP AGENDA ITEM 16 AND 17. CONSIDER APPROVAL OF A RESOLUTION ADOPTING THE UTILITY CUSTOMER ASSISTANCE PROGRAM, A SIX MONTH PILOT AND APPROVING THE EUCAP FRAMEWORK AND IMPLEMENT IMPLEMENTATION. AND I OH, LET ME SEE SOMETHING BECAUSE I, I DO SUPPORT ONE MORE THAN I SUPPORT THE OTHER OF THESE. SO WHEN WE GO TO APPROVE THESE, EVEN THOUGH I'M GOING TO PULL THEM UP, I'M GOING TO REQUEST THEY BE DONE DIFFERENTLY. OH, ABSOLUTELY. ANY VOTES WOULD BE SEPARATE, BUT I THINK THE, THE REASON FOR ITEM 17 IS RELATED TO. 16 SO WE WANTED TO MAKE SURE WE BRIEFED THE COUNCIL ON. PERFECT. ALL RIGHT. CONSIDER APPROVAL OF AN ORDINANCE AMENDING CHAPTER 50, ARTICLE TWO OF THE CITY OF KYLE. CODE OF ORDINANCES TO REPEAL AND REPLACE SELECTED SECTIONS GOVERNING WATER AND WASTEWATER BILLING AND ENFORCEMENT TO UPDATE RULES OF DEPOSITS, PENALTIES, PAYMENTS, PROCEDURES AND RELATED POLICIES TO PROMOTE CONSISTENT SERVICE DELIVERY, FAIRNESS TO CUSTOMERS AND THE LONG TERM FINANCIAL SUSTAINABILITY OF THE CITY'S UTILITY SYSTEM. ITEM PRESENTER JOSH CONLEY. GOOD EVENING, MAYOR AND MEMBERS OF COUNCIL JOSHUA CONLEY, ASSISTANT DIRECTOR FOR FINANCE. TONIGHT. BEFORE YOU, I HAVE AN UPDATE ON THE UTILITY CUSTOMER ASSISTANCE PROGRAM BASED ON THE FEEDBACK THAT WE RECEIVED FROM CITY COUNCIL ON THE BACKGROUND UP ON THE SCREEN. NOW, BASICALLY, THIS STARTED IN 2024. IT'S BEEN QUITE THE JOURNEY AND THIS HAS GONE THROUGH MANY ITERATIONS, BUT BASED OFF OF THE FEEDBACK WE RECEIVED FROM YOU ALL IN JANUARY, WE HAVE ADDED ADDITIONAL GUARDRAILS TO THE CAP PROGRAM AND ARE ASKING TO INITIATE IT AS A PILOT PROGRAM SO THAT WE DON'T SET SOMETHING INTO PERPETUITY THAT MAY NOT WORK THE WAY YOU ALL INTEND IT TO. THE PILOT STRUCTURE IS PROPOSED AT SIX MONTHS, AND SINCE THIS WAS FUNDED IN THE FY 26 BUDGET WITH A TOTAL OF $60,000, WE ARE PROPOSING THAT FOR THE REMAINING SIX MONTHS, WE FOCUS ON $30,000 WORTH OF ASSISTANCE. THE IDEA BEING THAT THE PROGRAM IS NOW COMPLETELY ADMINISTERED BY UTILITY BILLING STAFF WITHIN FINANCE AND USING BASICALLY A SELF-ATTESTATION MODEL TO ENSURE THAT THERE IS A NEED PRESENT FOR INDIVIDUALS IN ORDER TO HELP THEM. IF PILOT FUNDING IS EXHAUSTED, STAFF MAY PAUSE OR BRING BACK THE CITY COUNCIL REQUEST TO USE MORE OF IT, AND ALSO PROVIDE YOU AN UPDATE ON HOW IT'S BEEN WORKING, HOW MANY INDIVIDUALS WE'VE HELPED, AND WHAT THAT LOOKS LIKE. THE ELIGIBILITY AND HARDSHIP ATTESTATION BASICALLY DOES HAVE A FEW REQUIREMENTS. AGAIN, THEY'D HAVE TO BE AN ACTIVE RESIDENTIAL CITY OF KYLE UTILITIES CUSTOMER. SO WE'RE NOT HELPING PEOPLE OUTSIDE OF THAT. ARE WATER CUSTOMERS. THE PRIMARY ACCOUNT HOLDER WOULD HAVE TO BE LISTED ON THE UTILITY ACCOUNT WOULD BE THE PERSON APPLYING. THEY WOULD BASICALLY SIGN THIS HARDSHIP ATTESTATION AND SUBMIT IT TO THE CITY. IN ADDITION, ANY TERTIARY MATERIAL THEY'D LIKE TO SUBMIT WITH THAT, LIKE SNAP BENEFITS OR ANY OTHER CURRENT BENEFITS THEY'RE ON WILL TAKE.

AND THEN WE ARE LIMITING THEM TO ONE ATTESTATION PER 12 MONTH PERIOD. UNLESS AN EXTRAORDINARY CIRCUMSTANCE MAY PREVENT SELF. AND THEN WE'D BRING THAT TO THE DIRECTOR OF FINANCE FOR APPROVAL AT THAT POINT, LOOKING AT THE PROGRAM ITSELF, YOU KNOW, WITH THAT $30,000, WE'RE ROUGHLY TRYING TO LIMIT THE HELP TO NO MORE THAN $600 ANNUALLY PER HOUSEHOLD OR PER CUSTOMER. WE ALSO ARE LOOKING TO ADD ADDITIONAL CAPABILITIES TO THE PROGRAM. SO WE'D LIKE TO BE ABLE TO DO THINGS LIKE EXTENDED DEFERRED PAYOUT AGREEMENTS UNDER THE EXISTING UTILITY BILLING ORDINANCE, WE'VE KIND OF BEEN RESTRICTED TO THREE MONTHS. AND SO PART OF THE REASON THAT WE'RE ASKING TO UPDATE SOME OF THE UTILITY BILLING ORDINANCES TO MAKE IT MORE CUSTOMER FRIENDLY AND FOCUSED AND ALLOW US TO HAVE A LITTLE BIT MORE LENIENCY SO WE CAN OPERATE IN BETTER CUSTOMER SERVICE. WE ARE ASKING TO BE ABLE TO COVER THINGS LIKE WASTEWATER WATER, SOLID WASTE AND STORM DRAINAGE AS WELL, SO THAT WE CAN TRY TO PROVIDE A FULL SERVICE HELP WHEN NECESSARY. THE AGAIN, THE SUMMARY IS WE'D LIKE TO ADOPT EUCAP AS A SIX MONTH PILOT PROGRAM. THIS FRAMEWORK WAS ATTACHED TO THIS ITEM.

HOPEFULLY YOU GUYS GOT A CHANCE TO REVIEW IT, BUT IT'S IT'S ALL STRUCTURED AROUND EVERYTHING THAT WE TALKED ABOUT HERE. AND IT DOES CONFIRM THAT THIS PROGRAM IS BASICALLY TO TRY TO TARGET THOSE WHO HAVE TEMPORARY HARDSHIP RELIEF AND NOT TO BE USED AS LIKE A CITYWIDE RATE REDUCTION PROGRAM, NOT THE INTENT. AGAIN, COUNCIL HAS THREE OPTIONS. THEY COULD

[02:40:08]

APPROVE THE RESOLUTION ADOPTING THE UTILITY CUSTOMER ASSISTANCE PROGRAM AS A SIX MONTH PILOT PROGRAM, THEY COULD MODIFY THE RESOLUTION AND APPROVE WITH SOME COUNCIL DIRECTED CHANGES, OR YOU GUYS COULD DENY THE RESOLUTION. GIVEN WHAT WAS ASKED OF STAFF, STAFF CAN RECOMMEND OPTION NUMBER ONE AS STARTING THIS AS A PILOT, AND WE CAN KIND OF SEE HOW THIS HELPS THE PEOPLE SUFFERING IN OUR CITY. ALL RIGHT. THANK YOU. ANY QUESTIONS OR COMMENTS? ALL RIGHT THEN I'LL START. THERE'S NOT A HARDSHIP FORM ON HERE. I MIGHT OVERLOOK THAT THE ATTESTATION FORM WAS NOT ATTACHED. I DON'T THINK SO. I LOOKED AND I COULDN'T FIND IT.

AND I SHOULD HAVE BEEN THE APPENDIX ON THE THE MAIN PDF. I'M. I HAVE TO LOOK. I'M SO SORRY. NO, IT'S OKAY. I JUST NOTICED AND I JUST LOOKED AT THIS. SO IT'S. I SHOULD HAVE LOOKED AT IT BEFORE. SO YEAH, I NOTICED THAT WASN'T ON THERE. SO I CAN'T TELL IF IT'S REQUIRES A NOTARY, BUT I THINK THAT WOULD BE NICE IF WE COULD HAVE IT NOTARIZED BECAUSE I LOOKING AT THE NUMBERS, IF WE HAVE 30,000 PEOPLE, $30,000 AND A MAX OF $600, YOU'RE LOOKING AT 50, 50 PEOPLE. 50 PEOPLE. YEAH. FOR SIX MONTHS AT THE FULL RATE. YEAH. AT THE FULL RATE. SO IN ORDER TO MAKE SURE I MEAN SOMETHING JUST LIKE, HEY, GET IT NOTARIZED. JENNIFER'S A NOTARY AND I THINK THERE'S OTHER NOTARIES. IF WE COULD HAVE THAT FORM TO BE NOTARIZED, I WOULD APPRECIATE THAT AS WELL. ON PAGE FIVE. IT TALKS, IT SAYS INCOMPLETE FORMS OR DUPLICATE SUBMISSIONS WITHIN THE SAME 12 MONTHS MAY BE DENIED. I GET WORRIED ABOUT THE WORD MAY BECAUSE THAT MAKES IT WHERE YOU COULD MAYBE DO IT OR MAYBE NOT. CAN WE HAVE SOMETHING A LITTLE BIT MORE LIKE WILL BE DENIED OR WILL NOT BE? YOU KNOW WHAT I MEAN? LIKE I WANT SOMETHING A LITTLE BIT STRONGER ONE WAY OR ANOTHER, BECAUSE WHAT I DON'T WANT TO DO IS TO COME OFF DISCRIMINATORY. SO WE, WE MAY DO IT FOR THIS ONE AND WE MAY NOT DO IT FOR THAT. ONE COULD OR COULD NOT OR JUST COULD BE DENIED OR WILL BE DENIED OR WILL BE DENIED. SPECIFIC WILL BE DENIED. AND THEN QUESTION BEING SAY THEY. I'M MAKING SOMETHING UP ABOUT THE MIDDLE INITIAL OR WHAT THE MIDDLE INITIAL. OR ARE WE GOING TO LET THEM RESUBMIT THE FORM, BUT WE'RE GOING TO DENY IT BECAUSE IT WAS MISSING INFORMATION? IF YOU UNDERSTAND WHAT WE'RE SAYING, I JUST WANT TO MAKE SURE. SO WHAT WOULD BE THE PROCESS FOR THAT IF IT'S MAYBE DENIED, IF IT'S SOMETHING THAT'S REQUIRED? I THINK THAT'S THE REASON IT'S MADE IS BECAUSE IF IT'S INCOMPLETE, BUT IT'S MISSING SOMETHING THAT'S NOT NECESSARILY SUBSTANTIVE OR SOMETHING SUBSTANTIAL THAT MAYBE WE DON'T WANT TO DENY IT. MAYBE WE WANT TO ASK THEM TO SUPPLEMENT IT, PROVIDE ADDITIONAL INFORMATION. WHEREAS IF IT'S A DUPLICATE, THEY ALREADY RECEIVE THE FUNDING, IT WOULD GENERALLY BE DENIED. SO THOSE ARE TO ME, THOSE ARE TWO SEPARATE SITUATIONS. AND WE CAN BREAK THEM OUT. BECAUSE IF IF FOR EXAMPLE, IF IT'S DUPLICATE, I WOULD THINK IT WOULD MAYBE BE DENIED. BUT YOU'RE TELLING ME IT'S IT WILL BE DENIED BECAUSE WE HAVE HAD IT IN THERE THAT THEY GET UP TO $600. SO ONCE I'VE GOTTEN $600, IT WOULD BE RIGHT. SO WHAT I'M SAYING IS THEN THE DUPLICATE SHOULD BE TAKEN OUT OR IT WOULD BE IT WILL BE DENIED. I THINK LEAVING MAY IN THERE, LIKE I WOULD ASSUME, OH, IF I DO A DUPLICATE, I MAY OR MAY NOT BE DENIED. BUT IF YOU'RE SAYING IT WILL BE DENIED, THEN EITHER I WOULD JUST REMOVE DUPLICATE OR I WOULD SAY DUPLICATES WILL BE DENIED, CAN BE DENIED. YEAH.

THE REASON I LEFT IT OPEN IS ALSO WHAT IF THEY CAME WITH WITH NEED LESS THAN $600 AND THEN DOWN THE ROAD IN THREE MONTHS, THEY NEEDED SOME ADDITIONAL HELP BECAUSE OF CIRCUMSTANCES THAT THAT RAISED ITSELF AGAIN. SO THE REASON THAT THEY MAY SUBMIT TWICE, WE PUT A CAP ON THE AMOUNT WE WOULD HELP THEM, BUT I DIDN'T WANT TO PUT A LIMIT TO THE NUMBER OF TIMES THEY COULD APPLY, BECAUSE IF THEY'RE APPLYING FOR A VERY SMALL AMOUNT, YOU KNOW, I WOULD JUST DO INCOMPLETE FORMS, JUST INCOMPLETE FORMS OR SUBMISSIONS WITHIN THE SAME 12 MONTHS MAYBE, OR I WOULD JUST SAY INCOMPLETE FORMS MAY BE DENIED. I THINK THAT WOULD BE EASIER. IT WOULD TAKE OUT THE CONFUSION OF DUPLICATE SUBMISSIONS BECAUSE LIKE YOU'RE SAYING, IF THEY ONLY USED 300, BUT THEY DIDN'T USE THE OTHER 300. AND TO ME THAT MIGHT CONFUSE THEM. SO I WOULD JUST SAY THE INCOMPLETE FORMS MAY BE DENIED. THAT MAKES SENSE TO ME. AND I THINK THE $600 IS COVERED ELSEWHERE IN THE POLICY. IT IS, IT IS. AND THEN RECONNECTION FEE UP TO $75 PER HOUSEHOLD FOR RECONNECTION DUE TO FINANCIAL HARDSHIP. I FEEL LIKE THAT'S IS THERE. THAT'S A LOT OF MONEY. IF YOU'RE ALREADY NOT BEING ABLE TO PAY YOUR BILL, CAN WE DISCOUNT THE DISCONNECTION FEE? I THINK THAT MIGHT BE A

[02:45:06]

CONVERSATION WE COULD HAVE DURING RATE CONVERSATIONS. I DON'T, I DON'T, I DON'T WELL, I'M JUST SAYING FOR THE PEOPLE WHO WHO QUALIFY FOR THIS, WELL, THAT'S WHY WE'RE ASKING FOR THE ABILITY TO, TO USE HELP FOR THOSE KINDS OF THINGS. I MEAN, IF, IF COUNCIL WANTED TO ALLOW US TO WAIVE THAT AND NOT COUNT THAT TOWARDS THE 600, I'M SURE WE COULD DO THAT AS WELL. WE WOULD JUST NEED DIRECTION TO DO SO. WAVE ONE TIME CONNECTION FEE BECAUSE RECONNECTION, BECAUSE IF THEY DO TO WAIVE THE ONE TIME RECONNECTION FEE, BECAUSE IF THEY GET DISCONNECTED AGAIN, THEN, YOU KNOW, YOU, YOU, YOU'RE TRYING TO GET PEOPLE CAUGHT UP, YOU'RE TRYING TO GIVE THEM THAT. YOU'RE NOT JUST SAYING, HEY, HERE'S, HERE'S THE FREE MONEY, WHATEVER IT IS, IT'S TO HELP THESE PEOPLE GET CAUGHT UP. SO WE COULD DO ALL FIELDS MUST BE REQUIRED TO FILL OUT FOR PROPER APPLICATION COULD RESULT IN DENIAL OF APPLICATION. AND THEN ALSO IT SAYS UPON APPROVAL, ONE TIME ACTIVATION FEE WILL BE WAIVED LIKE A ONE TIME FEE ON THAT IN. IF WE WERE TO DO THAT, WOULD WE HAVE TO INCREASE THE BUDGET ALLOTTED TO. THIS, I THINK, IS MY NEXT QUESTION. WOULD IT BE THE RECONNECTION FEES? RIGHT NOW, I BELIEVE. I GUESS THAT'S. I DON'T KNOW THAT IT WOULD. I MEAN, IT'S, IT'S STAFF TIME THAT GOES OUT THERE.

SO WE'RE, WE'RE TRACKING IT FOR THE PURPOSE OF, YOU KNOW, SOMEBODY HAD TO GO OUT TO THE LOCATION, TURN OFF THE METER, AND THEN WE'RE SENDING SOMEBODY BACK OUT TO TURN ON THE METER.

SO HOW DO WE DO IT? WE DON'T DO IT LIKE NO REMOTELY. NO, NO, THE NEW METERS DO NOT HAVE THE ABILITY FOR THAT TO HAPPEN. THE NEW METERS DON'T HAVE THAT ABILITY. CORRECT. IT'S ANOTHER MALFUNCTION POINT. SO IT'S THERE'S THERE'S COST BENEFIT ANALYSIS TO THAT. BUT THE DECISION I WASN'T PART OF THAT. SO THE ARMY WE'RE DOING THE ARMY METERS AND THEY WE DON'T HAVE THE CAPABILITY TO TURN THEM OFF REMOTELY. I DON'T KNOW THE ANSWER TO THAT QUESTION. I KNOW WE JOSHUA GAVE THAT INFORMATION. WE CAN COME BACK WITH MORE INFORMATION. YEAH, THAT MAKES A DIFFERENCE. BUT I THINK THE THE UK PROGRAM IS REALLY THE ISOLATED ISSUE WE'RE TRYING TO TALK ABOUT. OBVIOUSLY, IF YOU'RE GOING TO FUND MORE THINGS IN THE PROGRAM, OUT OF THE $30,000, THAT'S LESS LESS INDIVIDUALS YOU CAN HELP. SO IF YOU'RE LOOKING AT TRYING TO ADD A ONE TIME $75 FEE ONTO THE PROGRAM, WE CAN CERTAINLY DO THAT. AND THEN JUST COME BACK.

AGAIN, THIS IS A PILOT PROGRAM. WE DON'T KNOW HOW MANY WE'RE GOING TO NEED. WE COULD CERTAINLY COME BACK FOR ADDITIONAL FUNDING BASED ON SOME RESULTS THAT WE HAVE.

WOULD IT IT WOULD AFFECT IT CERTAINLY DOES USE FUNDS. SO IF WE'RE SIMPLY JUST PAYING FOR THOSE OUT OF THIS PROGRAM, BECAUSE I MEAN, THIS WOULD EVENTUALLY COME DOWN TO IF IT'S A PILOT PROGRAM AND IT'S FOR SIX MONTHS OR SOMETHING LIKE THAT, THEN WE'RE GOING TO BE CUTTING REAL CLOSE TO BUDGET. BECAUSE IF WE WANT TO ADD THIS AS A BUDGET AMENDMENT OR SOMETHING THAT WE WANT TO ADD ON THERE AS LIKE, WE WANT TO INCREASE THIS BY $10,000 TO WHERE WE CAN MAYBE SERVICE MORE PEOPLE IN THE LONG RUN, THAT WOULD HAVE TO BE SOMETHING WE WOULD NEED TO ADD TO THE BUDGET ON THAT END. YEAH, I DON'T THINK WE'RE TRYING TO DO THAT.

THIS IS THIS IS ALREADY BUDGETED, RIGHT? YEAH. FOR THIS YEAR. YES. AND WE'RE ALSO GOING TO DO THE ROUND UP AS WELL. IS THAT CORRECT. WE ARE LOOKING AT IMPLEMENTING THAT. YES. OKAY.

BECAUSE THAT THAT COULD YEAH FOR THE FUTURE. AND THAT'S MORE MONEY THAT OTHER PEOPLE COULD USE ON A VOLUNTARY BASIS FOR CUSTOMERS RIGHT THERE. YEAH, I THINK. BECAUSE I WOULD LIKE TO POSSIBLY CONSIDER IT FOR THE BUDGET FOR NEXT YEAR, IF WE COULD GET LIKE A MIDWAY REPORT, LIKE DURING THE SIX MONTH PROGRAM, IF WE COULD GET LIKE AFTER THE FIRST THREE MONTHS, A REPORT ON WHAT THIS LOOKED LIKE AND HOW MANY PEOPLE WE'VE ASSISTED AND WHAT LIKE THE AVERAGE AMOUNT THAT WE'RE ASSISTING PEOPLE WITH AND WHAT TYPE OF ASSISTANCE THAT WE'RE PROVIDING. I THINK THAT WOULD BE REALLY HELPFUL. AND ALSO JUST TO GIVE US AN UPDATE ON HOW IT'S GOING, I WOULD REALLY APPRECIATE THAT. NOW THAT I UNDERSTAND THAT THE RECONNECTION HAPPENS VIA LIKE AN FTE, I'M A LITTLE BIT HESITANT ON MOVING FORWARD WITH LIKE THE WAVING OF A ONE TIME RECONNECTION FEE BECAUSE THAT'S, THAT'S, THERE'S A COST ATTRIBUTED TO THAT. BUT I THINK THE ONE THING THAT I JUST WANTED TO JUST MAKE SURE THAT WE INCLUDED IS UNDER THE OUTREACH AND PUBLIC COMMUNICATION, IF WE COULD EMPHASIZE THAT THAT WOULD BE IN MULTIPLE LANGUAGES, LIKE NOT JUST SPANISH. OH, ABSOLUTELY.

OKAY. JUST I, AND I WOULD LIKE TO JUST HAVE IT IN WRITING JUST TO MAKE SURE THAT IT'S INCLUDED IN THAT. OKAY. WHEN WE BRING BACK A FORM, YOU KNOW, LIKE I SAID, THIS IS PILOT. SO WE KIND OF THESE ARE JUST GUIDELINES TO TRY TO GET THE PROGRAM UP AND RUNNING AT COUNCIL'S REQUEST.

AND SO THE GOAL WOULD BE TO BRING SOMETHING BACK MORE PERMANENTLY. ONCE WE BETTER DEFINED WHAT THAT ALL LOOKED LIKE. OKAY. AND THEN I DO HAVE SOME HESITANCY AROUND REQUIRING

[02:50:04]

THE NOTARY FOR A SELF-ATTESTED FORM. THAT'S KIND OF THE WHOLE POINT OF LIKE SELF ASSESSMENT IS THAT YOU DON'T NECESSARILY HAVE THESE OTHER BARRIERS AND POSSIBLE FINANCIAL BARRIERS TO BEING ABLE TO RECEIVE ASSISTANCE BECAUSE YEAH. SO I JUST WANTED TO MAKE A COUPLE NOTES ON THAT. THE CITY DOES PROVIDE NOTARY SERVICES FOR FREE TO PEOPLE WHO COME IN TO OUR OFFICE. WE HAVE MULTIPLE NOTARIES OVER AT THE PUBLIC SAFETY CENTER. I THINK THERE ARE OTHERS ELSEWHERE IN CITY BUILDINGS, BUT I WILL NOTE THAT THE STATE HAS ADOPTED A FORM OF A NON SWORN ATTESTATION THAT IS EQUALLY ENFORCEABLE FROM A FROM A PERSPECTIVE WHERE YOU DON'T HAVE TO GO TO A NOTARY. SO THAT IS AN OPTION WE COULD LOOK AT IF WE COULD WE DO THAT ONE.

YEAH, THAT'D BE GREAT. OKAY. CAN I NOT UNTIL I SEE THE HARDSHIP FORM. IS THERE ANY WAY THAT WE CAN TABLE THIS? UNTIL NEXT TIME, GIVEN THAT THERE ARE SIX OF YOU, THE ORDINANCE IS GOING TO HAVE TO COME BACK AGAIN ANYWAY, SO THERE'S NO REASON WE COULDN'T TABLE THIS AND CONSIDER THEM TOGETHER ON SECOND READING. OKAY, PERFECT DIRECTION TABLE AND GIVEN DIRECTION. YES, I'D LIKE TO. I THINK WE JUST DID. YEAH. AND THEN IF IT PASSES SEVEN ZERO NEXT TIME, THEN MOTION TO TABLE AND WE'LL BRING IT BACK NEXT. ALL RIGHT. I'D LIKE TO TAKE A I'D LIKE TO MAKE A MOTION TO TABLE AGENDA ITEM 16 SECOND. ALL RIGHT. I HAVE A MOTION BY MYSELF SECONDED BY MAYOR PRO TEM TOBIAS. ALL IN FAVOR, SAY AYE. ALL OPPOSED? MOTION PASSES SIX ZERO. THANK YOU, THANK YOU, THANK YOU. OH, NO. YOU'RE STILL HERE. I GOT THE NEXT ONE, TOO.

YOU DO? SO I HAVE CONSIDER APPROVAL OF AN ORDINANCE AMENDING CHAPTER 50, ARTICLE TWO OF THE CITY OF KYLE. CODE OF ORDINANCES TO REPEAL AND REPLACE SELECTED SELECTIONS.

SECTIONS GOVERNING WATER AND WASTEWATER BILLING AND ENFORCEMENT TO UPDATE RULES ON DEPOSITS, PENALTIES, PAYMENTS, PROCEDURES AND RELATED POLICIES TO PROMOTE CONSISTENT SERVICE DELIVERY, FAIRNESS TO CUSTOMERS AND LONG TERM FINANCIAL SUSTAINABILITY OF THE CITY'S UTILITY PROGRAM. WE HAVE JOSH STILL GO AHEAD. ALL RIGHT. GOOD EVENING, MAYOR AND COUNCIL.

JOSHUA CROWLEY, ASSISTANT DIRECTOR FOR FINANCE. THE ITEM I HAVE BEFORE YOU NOW IS AN UPDATE TO THE UTILITY BILLING ORDINANCE. SO YOU'RE ASKING WHY ARE WE UPDATING THE UTILITY BILLING ORDINANCE? THE THE IDEA BEHIND THIS IS THE UTILITY BILLING ORDINANCE WAS CRAFTED WHEN KYLE WAS A 5000 PERSON CITY, AND IT REALLY DIDN'T CLARIFY SOME OF THE ADMINISTRATIVE CAPABILITIES OF STAFF AND SPECIFICALLY AROUND BEING ABLE TO OPERATE UTILITY BILLING IN A CUSTOMER FOCUSED WAY, THE WAY THAT THE PREVIOUS ORDINANCE IS WRITTEN. IT'S VERY MATTER OF FACT AND DOESN'T ALLOW THERE TO BE LATITUDE. SO WHEN I, WHEN I SAY THINGS LIKE IF A PAYMENT IS MISSED, THE IDEA IS THAT IMMEDIATELY A FEE IS ASSESSED THE DAY AFTER THAT, THAT PAYMENT IS MISSED. AND THEN IT IT COMPOUNDS. SO THE NEXT TIME THE FEE HITS, IT'S 10% OF THE, YOU KNOW, PLUS 10%. AND SO IT'S A, IT'S A SNOWBALLING EFFECT THAT WE SEE THAT HAPPENS. ADDITIONALLY, THERE WEREN'T SOME CONTROLS IN PLACE TO ALLOW FAIRNESS WHEN IT COMES TO THE CUSTOMER. YOU KNOW, LIKE WE, WE HAD SOME INABILITY TO WAIVE, YOU KNOW, THOSE, THOSE RECONNECTION FEES UNDER ANY CIRCUMSTANCES UNDER THE PREVIOUS ORDINANCE. AND SO WHAT WE'RE DOING HERE IS, IS BASICALLY TRYING TO. BASICALLY, WE WANT TO CLARIFY THE, THE, THE STANDARD BILLING RULES. WE WANT TO STRENGTHEN THE METERING REQUIREMENTS AND ELEMENTS AND ELIMINATE NEW SHARED METERS. SO LIKE IN THE PAST, WE USED TO ALSO ALLOW DOUBLE SHARED METERS.

WE WANT TO ELIMINATE THAT FROM THE POLICY. WE WANT TO ENHANCE THE DEPOSIT RECONNECTION AND DELINQUENCY POLICIES TO BASICALLY IMPROVE OUR COST RECOVERY. WE DON'T REALLY HAVE GREAT ABILITY TO DO THAT WITH THE PREVIOUS ORDINANCE. WE'D ALSO LIKE TO EXPAND THE AUTHORITY TO TO MAKE COLLECTIONS AND ALSO BETTER DEFINE CLEAR MAINTENANCE RESPONSIBILITIES BETWEEN THE CITY AND CUSTOMERS. SO AGAIN, WHY ARE WE PROPOSING THESE CHANGES? THE CODE WAS PREVIOUSLY AMBIGUOUS AND INCONSISTENT AND LACKED CLARITY.

RISING DELINQUENCY THREATS THREATENED SHORT TERM CASH FLOW AND LONG TERM FUND HEALTH TECHNOLOGY ENABLES SAFER PAYMENTS AND IMPROVE CUSTOMER COMMUNICATION, AND IT JUST DIDN'T HAVE MECHANISMS THAT ALLOW US TO LEVERAGE SOME OF THE POTENTIAL TECHNOLOGIES WE HAVE AVAILABLE TO US TO HELP OUR CUSTOMERS LIKE AMI OR THIS EUCAP PROGRAM. AND SO AGAIN,

[02:55:01]

THE IDEA WAS AMENDING THE ORDINANCE TO REFRESH THE LANGUAGE. IN ORDER TO DO THAT.

SO CITY COUNCIL HAS A COUPLE OF OPTIONS. OBVIOUSLY, THE OPTION TO APPROVE THE ORDINANCE WITH THE CHANGES AS PRESENTED, APPROVE THE ORDINANCE WITHOUT THE CHANGES OR DENY THE ORDINANCE, AND STAFF DOES RECOMMEND APPROVING THE ORDINANCE. ALL RIGHT. THANK YOU.

ANYBODY HAVE QUESTIONS? COMMENTS? WHY DO I FEEL LIKE I'M ALWAYS THE ONE? ALL RIGHT.

FIRST AND FOREMOST, THERE'S NO APPENDIX A. THE APPENDIX A IS NOT BEING AMENDED. APPENDIX A IS REFERENCED THROUGHOUT OUR CITY CODE. AND IT IS ADOPTED AS PART OF THE BUDGET ORDINANCE EVERY YEAR. ALL RIGHT. SO WHEN I SEE THIS IT SAYS A DEPOSIT IS SPECIFIED IN APPENDIX A IS REQUIRED FOR EACH NEW SERVICE AMOUNT. SO IF I'M GOING TO READ AN ORDINANCE AND IT HAS AN APPENDIX WITH IT, I WOULD LIKE TO SEE IT TOGETHER. SO THAT WAY WE KNOW BECAUSE I DON'T WANT TO HAVE TO GO LOOK SOMEWHERE ELSE. LIKE LIKE I WANTED TO READ IT AND I WANTED TO REVIEW IT AND SEE WHAT IT SAID. I DIDN'T REALIZE THAT IT LIVED IN A DIFFERENT PLACE. YEAH. APPENDIX A IS ALL THE CITY'S FEES AND RATES. AND SO IT'S IT IS APPENDIX A TO THE CODE OF ORDINANCES, NOT NECESSARILY APPENDIX A TO CHAPTER 50. WELL, THIS JUST SAYS APPENDIX A. SO IT DOESN'T SAY TO THE CODE OF ORDINANCES, RIGHT. BECAUSE THERE'S NOT ONE SPECIFICALLY FOR CHAPTER 50. IT'S THE SAME APPENDIX A IT'S THROUGHOUT THE CODE. RIGHT. SO IF WE CAN. OKAY, NEXT TIME I WOULD JUST LIKE TO SEE IT TOGETHER BECAUSE AGAIN, I DIDN'T KNOW THAT AND I'M PRETTY FAMILIAR WITH THE ORDINANCES. AND IF I DON'T KNOW THAT, THEN THERE MIGHT BE RESIDENTS THAT DON'T KNOW THAT AS WELL. JUST FOR CLARITY, WOULD YOU LIKE THE ENTIRE APPENDIX ATTACHED OR JUST THE PORTION, THE PORTION THAT WE COULD BRING IT BACK ON SECOND READING TO SHOW YOU WHAT THAT LOOKS LIKE. OKAY, SO ONE OF MY QUESTIONS IS GOING TO BE WHAT IS OUR CURRENT SHUT OFF TIME? LIKE TO SHUT, SHUT OFF SOMEONE'S WATER TIME OF DAY? THE DATE. I'M LIKE, HOW LONG DO THEY HAVE AFTER THEIR BILLS NOT PAID? SO SHUT OFFS OCCUR UNDER THE CURRENT ORDINANCE. SHUT OFFS OCCUR THE DAY AFTER THE DUE DATE OF PAYMENT IS FAILED.

AGAIN, THAT WAS PART OF THE REASON FOR THE UPDATE. THAT'S IT'S VERY MATTER OF FACT. AND SO, YOU KNOW, IT AFFECTS CUSTOMERS WHO HAVE THINGS LIKE A CREDIT CARD THAT EXPIRED THAT THEY HAVE ON AUTOPAY. YOU KNOW, THEY THERE WAS NO LENIENCY TO ALLOW US TO GET IN CONTACT WITH THE CUSTOMER UNDER THOSE ABSORBENT, BECAUSE IT'S VERY MATTER OF FACT AS CURRENTLY WRITTEN. OKAY, SO I DO SEE THAT DEPOSITS ARE GOING TO BE REQUIRED. ARE THEY CURRENTLY REQUIRED FOR EVERYBODY. THEY ARE. SO OKAY. THEY ARE CURRENTLY REQUIRED FOR DUE. AND HOW MUCH ARE THEY? IT DEPENDS ON THE SIZE OF THE METER BEING INSTALLED. I'D HAVE TO REFER TO THE THE FEE SCHEDULE TO TELL YOU THE EXACT AMOUNT PER PER SIZE, BUT IT IS BASED ON THE SIZE OF THE METER. I MEAN THE. OKAY, SO I'M GOING TO ASK THE HARD NOT FUN QUESTIONS. SO WHAT HAPPENED TO SECTION 23 AND 24? SURE. I'M GOING TO GO AHEAD AND ADDRESS THAT ONE. SO THE PURPOSE OF THIS ORDINANCE WAS, AS JOSHUA HAS EXPLAINED, PRIMARILY TO HANDLE THESE INFLEXIBILITIES IN THE IN THE ORDINANCE, THERE WERE THERE WERE ORIGINALLY. AND THE PROPOSED ORDINANCE FROM SEPTEMBER, SOME CHANGES TO 23 AND 24. THOSE CHANGES WERE MORE JUST ATTACHED BECAUSE WE WERE BRINGING THIS BACK. SO BECAUSE OF ALL OF THE CONVERSATIONS THAT HAVE HAPPENED AROUND 50, 23 AND 5024, OUR RECOMMENDATION WAS TO LEAVE THOSE ALONE FOR THE TIME BEING AND HANDLE THE REST OF THESE ISSUES, BECAUSE THEY'RE NECESSARY FOR THE NORMAL PROCESSES IN THE BE UNDERSTOOD. SO IF I APPROVE THIS THOUGH, AND IT'S NOT IN THERE NOW, I'VE JUST I'VE MADE A WHOLE NEW NO, IT'S INTENTIONALLY LEFT OUT. SO THAT'S WHY IT'S NOT REFERENCED IN THERE. WE REFERENCED THE SPECIFIC SECTIONS THAT ARE BEING AMENDED AND THOSE TWO ARE NOT INCLUDED. AND THAT IS INTENTIONAL. OKAY, SO FOR FUTURE, IF YOU COULD ADD 23 AND 24 OR LIKE ADD THE ITEMS AND JUST SAY NO CHANGES MADE OR JUST TO BECAUSE OTHERWISE I'M LOOKING AT IT AND IT JUST GOES FROM SECTION 22 TO 25, RIGHT? SO MAYOR, I THINK THAT'S WHERE OUR ORIGINAL REQUEST FOR REDLINING WOULD HAVE COME IN.

THIS COULD HAVE BEEN DONE A LITTLE DIFFERENTLY WHERE I APPRECIATE EXACTLY WHAT YOU'VE PUT IN AS FAR AS THE CHANGES GO, BUT WE'VE REQUESTED IN THE PAST TO HAVE REDLINING, SHOWING WHAT'S TAKEN OUT, TO SHOW THE CHANGE. AND WITH THAT, IF WE HAD SEEN THAT, THEN WE WOULD KNOW WITHOUT A DOUBT THAT THOSE SECTIONS WERE STILL IN PLAY AND CAN BE CHANGED. I TYPICALLY DON'T WITH THE REPEAL AND REPLACE BECAUSE IT'S HARDER. YOU JUST HAVE LIKE A BIG BLOCK OF CROSSED OUT LANGUAGE AND THEN A BIG BLOCK OF NOT CROSSED OUT LANGUAGE VERSUS IF WE'RE CHANGING A COUPLE OF WORDS HERE AND THERE IN THE CODE. SO THAT'S WHY I DIDN'T DO THAT.

BUT WE CAN DO THAT MOVING FORWARD IF THAT IS SOMETHING COUNCIL WOULD RATHER SEE. YEAH, THAT MAKES IT EASIER FOR US. AND THEN MAYBE ON THE SECOND READING WE CAN HAVE LIKE A,

[03:00:01]

JUST A, THE FINAL, FINAL ORDINANCE. YEAH. BECAUSE WHATEVER I VOTE ON, WHATEVER I VOTE ON, THAT'S WHAT I WANTED TO SEE IN THE ORDINANCE. OKAY. BECAUSE WHEN YOU GO TO 23, 24, IT'S LIKE, LIKE COMPLETELY MISSING, LET'S SAY THE WORLD ENDS TOMORROW AND THEN WE COME BACK TO CIVILIZATION. IT'S LIKE, WELL, WHERE'S THAT CODE AT? RIGHT? VERSUS HAVING 23, 24 UNDER REVIEW OR SOMETHING LIKE THAT. I THINK WE WOULD JUST LEAVE IT IF WE WERE GOING TO INCLUDE IT. WE WOULD INCLUDE NOT YEAH, NOT AMENDED, NOT REPEALED, NOT AMENDED, NOT REPEALED OR UNDER. YEAH. BECAUSE IT IS CURRENTLY UNDER REVIEW. I DON'T I DON'T GENERALLY DO THAT. LIKE IF I'M AMENDING, I UNDERSTAND THIS ONE BECAUSE IT'S THE ENTIRE CHAPTER EXCEPT THOSE TWO PROVISIONS A LITTLE BIT DIFFERENT. BUT IF I'M AMENDING, YOU KNOW, THREE PROVISIONS IN A CHAPTER THAT'S GOT 30 PROVISIONS, I USUALLY ONLY INCLUDE THE THREE THAT ARE BEING AMENDED. I DID IT THE SAME WAY THAT I WOULD NORMALLY DO IT. IT'S LIKE READING A BOOK.

AND THEN FINALLY THE CHAPTER 13 AND IT'S COMPLETELY MISSING. YOU'RE LIKE, WAIT A MINUTE, I'M MISSING HALF THE STORY. SO WHAT SECTION WAS THE PREVIOUS ORDINANCE? 1381 UNDER? 1381 WAS ORIGINALLY INTENDED TO BE A REPEAL OF THE ENTIRETY OF CHAPTER 50. OH, OR THAT ENTIRE SORRY, THAT ENTIRE ARTICLE OR SUBCHAPTER OF CHAPTER 50. CORRECT. OKAY. AND WHAT WAS THAT? WHAT SECTION WAS THAT? IT WAS ALL OF THE ENTIRE WATER AND WASTEWATER GENERALLY SECTION OF WAS THAT IS THAT SUBTITLE? I CAN'T REMEMBER WHICH ARTICLE IT IS, BUT THAT ENTIRE ARTICLE OF CHAPTER 50. SO IT WAS LIKE 5020 THROUGH 50, 31 OR 33, WHATEVER THE LAST ONE IS. IT WAS THE ENTIRE AREA. OKAY. SO I DO HAVE A CONCERN THAT THE NEW 1381 IS LANDSCAPING AND SCREENING. WHAT CAN WE DO TO SHOW THAT THERE WAS SOMETHING HERE? IT'S GONE. OR CAN YOU SAY IT'S BEEN REDIRECTED TO. SO IT WAS AS WAS PRESENTED TO OR AS WAS POINTED OUT TO STAFF, IT WAS NEVER ACTUALLY ADOPTED. AND SO WHEN IT WAS REMOVED, IT WAS REMOVED BECAUSE IT HAD NOT BEEN ADOPTED.

AND WHEN STAFF LOOKED TO CONSIDER BRINGING THESE CHANGES SO THAT JOSHUA COULD CONTINUE MAKING THE CHANGES THAT HE BELIEVED WERE NECESSARY FOR THE SYSTEM WITHOUT INTERFERING WITH THAT PARTICULAR THOSE TWO PARTICULAR PROVISIONS, WE DECIDED THAT THAT REALLY SHOULD START OVER AT FIRST READING BECAUSE IT'S A DIFFERENT CHANGE. AND SO THAT THAT IS WHY 1381 WAS REMOVED AND IS BEING BROUGHT BACK NOT AS A SECOND READING, BUT AS IT AS A NEW FIRST READING FOR NEW ORDINANCE. BUT YOU DO UNDERSTAND THE CONFUSION AND EVEN THE PERCEPTION OF GIVING A WHOLE NEW SECTION. THE SAME ORDINANCE NUMBER AS ONE THAT WAS UNDER QUESTION. OKAY. I MEAN, I THINK WE HAD A PAST OF HAVING A LOT OF BLANK NUMBERS IN OUR CODE, IN OUR ORDINANCE NUMBERS, AND IT CAUSED A LOT OF CONFUSION. AND SO ONE OF THE THINGS WE HAVE TRIED TO DO IS NOT LEAVE BLANK NUMBERS IN THE MIDDLE WHEN YOU CAN. I DON'T THINK THE INTENT WAS TO CAUSE THIS CONFUSION. I THINK THE ORDINANCE IS IS WAS NEVER PASSED. AND SO WE WERE TRYING TO CORRECT THAT ERROR. I, I COMPLETELY UNDERSTAND. AND THE HARD THING WITH INTENT IS THAT IT'S IF YOU DON'T KNOW THE BACKGROUND, IF YOU DON'T ASK THE QUESTIONS, IT'S HARD TO TELL INTENT. SO, BUT I CAN THE PERCEPTION IS DURING THIS TIME OF GOING THROUGH THE ISSUE WITH THE PUC THAT. NOW THIS COULD CAUSE A PROBLEM, ESPECIALLY IF THE PUC GOES BACK TO LOOK FOR THIS ORDINANCE, THE CITY SECRETARY CAN PROVIDE THE PREVIOUS DOCUMENTATION. IT'S ALSO STILL AVAILABLE. THE VERSION IS NOT SIGNED, BUT THE ORDINANCE THAT WAS PRESENTED IS STILL AVAILABLE ON THE CITY'S WEBSITE AS PART OF THE AGENDA FROM THAT MEETING. SO IT IS STILL AVAILABLE TO BE PROVIDED TO PEOPLE IF THEY NEED IT. SO IF THEY GO BACK. BUT AGAIN, THAT'S WHAT THE JUDGE IS GOING TO DO, RIGHT? LIKE THE PUC, HOW IS HE GOING TO KNOW THAT? WELL, THE THE POINT THAT I'VE MADE IS THAT ORDINANCE WAS NEVER PASSED, SO IT NEVER APPLIED. BUT THE CITY DID THINK IT. THEY DID IT. IT WAS IT WAS IN THE 360. THEY THOUGHT IT PASSED. IT WAS BROUGHT TO OUR ATTENTION. IT HAD NOT BEEN CODIFIED INTO THE ACTUAL FULL CODE. IT WAS ATTACHED AS NEW, NEW MATERIAL. AND IT WAS NOTED AS A NEW LAW THAT WAS COMING IN WHEN IT WAS DETERMINED THAT IT HAD NOT BEEN PASSED, THE CITY REMOVED THAT TO CORRECT THAT ERROR, BECAUSE WE DIDN'T WANT TO PUT ON OUR WEBSITE THAT A NEW LAW HAD BEEN PASSED THAT HAD NOT BEEN PASSED, RIGHT. BUT NOW THAT IT DID, CAUSE IT DOES CAUSE CONFUSION, IS ALL I'M SAYING. SO I WISH THERE WAS SOMETHING THAT WE COULD DO IN ORDER TO UNTIL THIS SITUATION IS OVER WITH THE PUC, THAT TO JUST HAVE LEFT IT THE WAY IT WAS, WE COULD PROBABLY TALK ABOUT A PROCESS FOR HOW TO NUMBER OUR ORDINANCES, I THINK. I DON'T THINK THIS WAS INTENDED TO BE ANY KIND OF MALICIOUS SITUATION. I THINK THE INTENT WAS TO JUST FOLLOW OUR STANDARD PRACTICE, AND WE GIVE THEM THE NEXT AVAILABLE NUMBER THAT EXISTS. OKAY. AND WHO MAKES THE CHANGES IN 360? WHO WHO MAKES THE CHANGES IN CODE? YES. THAT'S OUR CODIFICATION SERVICES. WE HAVE A CONTRACT WITH THEM. AND SO THEY DO IT THEMSELVES. LIKE HOW ARE THEY DIRECTED? HOW DO THEY KNOW WHEN TO UPDATE SOMETHING OR NOT TO? WE PROVIDE THEM WITH THE

[03:05:01]

ORDINANCES. IF WE ARE AWARE OF A MISTAKE, WE'LL PROVIDE THEM THE BACKUP OF OF THAT ISSUE AND LET THEM EVALUATE IT TO SEE IF THEY BELIEVE IT'S A MISTAKE OR NOT. YEAH, WE WE BRIEFED THE CITY COUNCIL ON THIS ON EXECUTIVE SESSION, ON ALL THE RELEVANT LAW AND ORDINANCES AND HOW THOSE WERE APPLIED PREVIOUSLY. OKAY. COUNCIL MEMBER ZAPATA. AND THEN JUST TO CLARIFY, I THINK I REMEMBER AT ONE POINT US BEING TOLD THAT THERE'S ALSO A LAG SOMETIMES OR MAJORITY OF THE TIME BETWEEN WHEN WE PROVIDE UPDATES AND WHEN IT ACTUALLY GETS UPDATED ON CODE. THAT'S CORRECT. SO THAT'S WHY IT WAS SHOWING UP AS NEW CODE MATERIAL PREVIOUSLY WHEN THE MISTAKE OCCURRED, DUE TO THE FACT THAT SOMEBODY HAD SAID IN THE ROOM THAT IT WAS PAST SEVEN ZERO, AND I GUESS IT JUST DIDN'T GET CAUGHT. SO BECAUSE OF THAT, IT SHOWED A NEW CODE MATERIAL AND I THINK IT'S QUARTERLY. JENNIFER CAN CORRECT ME IF I'M WRONG THAT THEY DO A FULL UPDATE, AND THEN THEY WILL CHANGE THE WORDING IN THE CODE AS IT APPEARS ON THEIR SITE. OKAY. ALL RIGHT. JUST WANTED TO MAKE SURE THAT THAT WAS ALSO STATED IN TERMS OF LIKE US NOT BEING NEGLIGENT OR LIKE, YOU KNOW, UNWILLING TO, TO CHANGE IT OR WANTING TO, IT'S JUST CONTRACTOR AND WHATNOT. OKAY. ALL RIGHT. ANY MORE QUESTIONS OR COMMENTS? SO I THINK WHENEVER WE HAVE AN ISSUE, SOMETHING LIKE WE HAD WITH THIS, YOU KNOW, RATHER THAN SHOWING JUST A BLANK MISSING NUMBER, I THINK THERE SHOULD BE SOMETHING KIND OF LIKE YOUR CHECK REGISTER WHERE YOU MARK VOID, YOU KNOW, AND YOU SAY WHAT THE PURPOSE WAS, WHAT HAPPENED WITH THAT, SO THAT YOU'VE GOT A MORE TRANSPARENT RECORD OF IT AND THEN KIND OF FILED THAT AWAY. AND SO, YOU KNOW, LIKE, HEY, IT WAS NEVER FORMALLY PASSED. AND SO JUST CONSIDER THIS ONE VOID. WE MOVE ON TO THE NEXT ONE. BUT I ALSO WANT TO KNOW WERE LIKE, WHAT HAPPENED WITH THOSE CHANGES ON 50, 23 AND 5024 THAT MR. GORELICK WAS REFERENCING EARLIER. JUST AS I STATED, IF WE BELIEVE THAT THERE IS SOMETHING IN THE CODE THAT SHOULD HAVE BEEN PREVIOUSLY CODIFIED AND WAS NOT, WE BELIEVE THERE'S A MISTAKE. WE PROVIDE THE BACKUP INFORMATION TO E CODE, E CODE REVIEWS THAT BACKUP INFORMATION, AND THEN THEY DECIDE WHETHER OR NOT TO CHANGE IT. IF THEY HAVE QUESTIONS, THEY ASK US FOR OPINIONS. OKAY. AND SO THEN WE DECIDED THAT IT NEEDED TO BE CHANGED. AND SO THAT WAS THE PROCESS THAT WE FOLLOWED. AND THEN THEY MADE THOSE CHANGES ON THE WEBSITE. IS THAT CORRECT? THE INFORMATION WAS PROVIDED TO E CODE. E CODE TOLD US THEY'D HAVE TO LOOK AT IT. AND THEN MY UNDERSTANDING IS THE CHANGES WERE MADE. I'M NOT SURE WHEN. OKAY. THANK YOU. ALL RIGHT. ANY OTHER QUESTIONS OR COMMENTS? OKAY. I THINK WHAT WE'RE ASKING FOR IS A RED LINE TO TO BRING BACK A RED LINE. AND THEN WAS THERE ANYTHING ELSE THAT YOU GUYS WANTED BESIDES THE RED LINE? I'M GOOD WITH THE RED LINE. YEAH. ALL RIGHT. THANK YOU. WANTED US TO INCLUDE THE PORTION OF APPENDIX A THAT HAS CHAPTER 50 AS AN ADDITIONAL ATTACHMENT FOR YOU TO LOOK AT.

YES, THAT WOULD BE GREAT. SO SHOULD WE TABLE THIS AS WELL. AND WE CAN VOTE BOTH OF THEM NEXT TIME. SO YOU CAN EITHER VOTE ON FIRST READING AS AMENDED BASED ON YOUR AMENDMENTS, OR YOU CAN TABLE IT AND THEN VOTE ON FIRST READING, NEXT MEETING. IT'S YOUR CHOICE.

OKAY, I'M GOING TO TABLE IT. AND THEN WHEN COUNCIL MEMBER MCKINNEY COMES BACK, HOPEFULLY IT CAN PASS UNANIMOUSLY. SO I'D LIKE TO MAKE A MOTION TO TABLE AGENDA ITEM 17. I HAVE A MOTION BY MYSELF A SECOND BY MAYOR PRO TEM TOBIAS. IT'S VERY IMPORTANT. YES. THANK YOU MAYOR. ALL RIGHT.

THANK YOU. ALL IN FAVOR, SAY AYE. AYE. ALL OPPOSED? MOTION PASSES SIX ZERO. ALL RIGHT. UP NEXT, CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF KYLE, TEXAS, DETERMINING THE COST OF CERTAIN AUTHORIZED IMPROVEMENTS TO BE FINANCED WITHIN IMPROVEMENT AREA NUMBER ONE OF THE SAVANNAH RANCH PUBLIC IMPROVEMENT DISTRICT. MAYOR, DID YOU WANT TO GO BACK TO ITEM 15? I'M SO SORRY. YES. THANK YOU. I SEE THE AUDITOR HERE. I'M TRYING TO FIGURE OUT WHO I WANTED TO GO FIRST. SORRY, GUYS, I DID NOT MEAN. I HOPE THAT DIDN'T SCARE YOU. ALL RIGHT.

[15) Consider approval of a resolution accepting the City's independent auditor’s report and related financial statements for the fiscal year ended September 30, 2025.]

AGENDA ITEM 15. CONSIDER APPROVAL OF A RESOLUTION ACCEPTING THE CITY'S INDEPENDENT AUDITOR'S REPORT AND RELATED FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30TH, 2025. ITEM PRESENTER PEREZ MOHIT MAYOR, MAYOR PRO TEM COUNCIL MEMBERS. FOR THE RECORD, I'M PERVEZ MOHETH, CITY'S DIRECTOR OF FINANCE. I'M GOING TO MAKE IT QUICK BECAUSE I HAVE A SELF-IMPOSED CURFEW OF 11 P.M. MY PRESENTATION TONIGHT IS GOING TO BE IN TWO PARTS. THE FIRST PART I'M GOING TO GO OVER THE FINANCIAL STATEMENTS, GIVE YOU SOME HIGHLIGHTS. AND THEN THE SECOND HALF, I'M GOING TO REQUEST THE CITY'S INDEPENDENT AUDITOR TO COME PRESENT THE THE ACTUAL AUDIT REPORT. BUT BEFORE I START, I WANT TO MAKE SURE THAT YOU HAVE THIS BEAUTIFUL FINANCIAL REPORT IN FRONT OF YOU. WE MADE SURE THAT YOU HAD A COPY. THIS IS THE REPORT THAT THE THAT THE ENTIRE YEAR OF THE FINANCE TEAM EFFORT CULMINATES

[03:10:02]

INTO THAT. THE AUDITORS FINALLY PUT THEIR APPROVAL ON. AND THEN SECONDLY, BEFORE I START, I WANTED TO DEVIATE JUST SLIGHTLY BECAUSE FINANCES, AS YOU KNOW, IS A SUPPORT TEAM. ASIDE FROM THE WALL OF FAME ON THIS SIDE, RIGHT BEHIND THE CITY ATTORNEY AND CITY MANAGER, WE DON'T GET MUCH RECOGNITION. WE'RE BEHIND THE SCENES PEOPLE. WE GET RECOGNIZED WHEN THINGS GO WRONG.

SO I WANTED TO TAKE JUST A COUPLE OF MINUTES TO RECOGNIZE TWO KEY STAFF MEMBERS IN THE FINANCE DEPARTMENT THIS EVENING BEFORE YOU. IT TAKES THE ENTIRE FINANCE DEPARTMENT TO RUN THE CITY'S FINANCIAL MANAGEMENT SYSTEM. THAT INCLUDES THE NICE REPORT THAT YOU HAVE BEFORE YOU, HOWEVER, THERE ARE A COUPLE OF PEOPLE THAT DEDICATE A LOT MORE HOURS AND TIME TO MAKE THIS HAPPEN EVERY FISCAL YEAR, AND THIS YEAR WAS A LITTLE DIFFERENT. WE HAD A COUPLE OF PEOPLE THAT MOVED ON, DECIDED TO MOVE ON. SO WITH THAT, I'M GOING TO ASK, I KNOW THEY DIDN'T KNOW THIS, BUT. ANDY. ALEJANDRO, WHERE ARE YOU? COME UP HERE. THIS IS ANDY ALEJANDRO.

HE'S OUR CITY CONTROLLER. HE'S BEEN WITH THE CITY LONGER THAN I HAVE, A LITTLE OVER 16 YEARS.

1919. AND HE'S OUR CITY CONTROLLER. THE FINANCIAL ACCOUNTING AND REPORTING SYSTEM IS ALL UNDER HIM. AND ALONGSIDE, WE HAVE MATEO GARCIA COME ON UP. HE'S OUR ACCOUNTING MANAGER.

AND THIS YEAR, THESE TWO GENTLEMEN. I WANTED TO MAKE SURE YOU ALL SAW THEIR FACES AND ALSO THEIR FAMILIES. I WANT THEM TO BE PROUD OF THAT. THEY'RE PART OF THE CITY OF KYLE ORGANIZATION. AND WHAT THEY DO, THEY JUST DON'T GO IN, CLOCK IN, CLOCK OUT, AND THAT'S IT. BUT THIS YEAR, BECAUSE OF THE SHORTAGE WE HAD, THESE TWO GENTLEMEN PUT IN A LOT OF HOURS AFTER HOURS AFTER WORK AND ON WEEKENDS, BECAUSE WE HAVE A VERY TIGHT DEADLINE TO MAKE SURE THAT THE AUDITORS GET ALL THE FINANCIAL INFORMATION ON A TIMELY BASIS, AND THEN THEY ARE ABLE TO PERFORM THEIR EXAMINATIONS WITHOUT ANY DELAYS, WITHOUT THESE TWO FOLKS, IT WOULD NOT HAVE BEEN POSSIBLE THIS YEAR. SO I WANTED TO THANK THEM PERSONALLY AND IN FRONT OF YOU. SO OTHER PEOPLE IN THE CITY CAN ALSO SEE WHO THE KEY PLAYERS ARE IN FINANCE. THANK YOU FOLKS. THANK YOU. THANK YOU ALL. SO WITH THAT MAYOR AND COUNCIL, I'M GOING TO BEGIN MY PRESENTATION. SO I'M GOING TO GO OVER THE CITY CHARTER. WHAT THE CITY CHARTER REQUIRES ON AUDITS. THEN HIGHLIGHT CITY'S FINANCIAL POSITION FOR FISCAL YEAR 2025, AND THEN TALK ABOUT THE CITY INDEPENDENT AUDITORS ROLE AND THEIR RESPONSIBILITIES. AND THEN TALK JUST VERY BRIEFLY ABOUT THE INDEPENDENT AUDIT REPORT ITSELF. THEN YOU'LL REMEMBER FROM THE LAST PRESENTATION I MADE BEFORE YOU ON MARCH 19TH, WE TALKED ABOUT THE TYPES OF REPORTS THAT THE AUDITORS CAN ISSUE. WE'LL JUST BRIEFLY GO OVER THOSE AND THEN TURN IT OVER TO THE CITY'S INDEPENDENT AUDITOR. AND THEN AFTER THEIR PRESENTATION, I'LL COME BACK AND GO OVER THE OPTIONS FOR CITY COUNCIL. SO THE CITY CHARTER IN ARTICLE EIGHT REQUIRES THE FOLLOWING AS IT PERTAINS TO THE ANNUAL AUDIT FINANCIAL AUDIT. AT THE CLOSE OF EACH FISCAL YEAR, AN AUDIT SHALL BE MADE OF ALL ACCOUNTS OF THE CITY BY A CERTIFIED PUBLIC ACCOUNTANT EXPERIENCED IN AUDITING MUNICIPAL GOVERNMENTS. TWO THE INDEPENDENT INDEPENDENT AUDITOR SHALL NOT MAINTAIN ANY OF THE ACCOUNTS OF THE CITY. IN OTHER WORDS, THEY CANNOT BE DOING ANY CONSULTING WORK FOR THE CITY OTHER THAN THE THE ANNUAL AUDIT OR ACT AS A FINANCIAL ADVISOR TO THE CITY, HAVE ANY FINANCIAL INTEREST WHATSOEVER IN ANY FINANCIAL AFFAIRS OF THE CITY, INCLUDING ANY MEMBER OF THE COUNCIL, CITY MANAGER OR ANY DEPARTMENT HEAD. SO THEY HAVE TO BE COMPLETELY INDEPENDENT OF THE DAY TO DAY CITY'S OPERATIONS. NUMBER THREE, THE COUNCIL SHALL NOT SELECT THE SAME AUDITOR FOR MORE THAN FIVE CONSECUTIVE YEARS. SO WE HAVE

[03:15:01]

TO ROTATE EVERY S AT THE END OF EVERY FIVE YEARS. NUMBER FOUR, UPON ACCEPTANCE OF THE INDEPENDENT AUDITOR'S REPORT, A SUMMARY THEREOF SHALL BE IMMEDIATELY PUBLISHED IN THE NEWSPAPER OF GENERAL CIRCULATION IN THE CITY. SO AFTER IF THE COUNCIL DECIDES TO ACCEPT THE INDEPENDENT AUDITOR'S REPORT THIS EVENING, I WILL BE SENDING A PUBLIC NOTICE THAT WILL BE PUBLISHED IN THE HAYS FREE PRESS NEXT WEEK WITH THE HIGHLIGHTS OF THE AUDIT AND WHAT THE COUNCIL'S DECISION WAS. AND FINALLY, COPIES OF THE AUDIT REPORT SHALL BE PLACED ON FILE WITH THE CITY SECRETARY'S OFFICE AS A PUBLIC RECORD. SO AFTER TONIGHT, WE WILL ALSO MAKE SURE THAT IT HAPPENS. SO HERE ARE SOME HIGHLIGHTS OF THE CITY'S OVERALL NET FINANCIAL POSITION. THE CITY'S COMBINED BALANCE SHEET. AND THIS IS FOR ALL FUNDS GENERAL FUND, WATER, WASTEWATER, DRAINAGE, ALL 65 OF OUR FUNDS AS OF SEPTEMBER 30TH, 2025 REFLECTS THE FOLLOWING FINANCIAL POSITION. TOTAL ASSETS TOTALED LITTLE OVER $1 BILLION, $1,000,000,030 MILLION. LIABILITIES TOTALED 348 MILLION. AND THE NET POSITION. THIS IS SIMILAR TO YOUR EQUITY IN YOUR HOME ASSETS MINUS LIABILITIES. OUR NET POSITION TOTALS $682 MILLION AS OF YEAR END. 930 2025. THE NET POSITION OF 682 682 MILLION IS AN INCREASE OF 81.4 MILLION, OR 13.5% INCREASE FROM THE PRIOR FISCAL YEAR. SO WHEN YOU COMPARE THE NET POSITION TO SEPTEMBER OF 2024 VERSUS 25, IT'S AN INCREASE OF 81.4 MILLION OR 13.5%. NOW, HIGHLIGHTING JUST ON GENERAL FUND, FOCUSING ON GENERAL FUND REVENUES AND TRANSFERS. IN TOTAL, 74.84 MILLION EXPENDITURES AND TRANSFERS OUT TOTAL 83.7 MILLION, WITH A FUND BALANCE AT YEAR END TOTALING 17.17 MILLION. THE AUDITED GENERAL FUND BALANCE OF 17.17 MILLION FOR FISCAL YEAR ENDED SEPTEMBER 30TH, 2025, IS A DECREASE OF 8.86 MILLION, OR 34% DECREASE FROM THE PRIOR FISCAL YEAR. AND LET ME LET ME PAUSE HERE AND EXPLAIN WHY THAT IS. AND IF YOU NOTICE, THE REVENUES WERE LESS THAN THE EXPENDITURES AND AND TRANSFERS OUT WHEN WE WHEN THE COUNCIL ADOPTED THE BUDGET FOR FISCAL YEAR 25, WE HAD A A DRAWDOWN ON THE FUND BALANCE. SURPLUS FUND BALANCE. WE USED IT FOR ONE TIME EXPENDITURES FOR CAPITAL EXPENDITURES, ABOUT $8.8 MILLION. SO THAT'S THE DECREASE THAT YOU SEE IN THE FUND BALANCE. ABOUT THE INDEPENDENT AUDITOR AND THE REPORTING STRUCTURE. I'LL GO THROUGH THIS REAL QUICK. THE AUDIT OF THE CITY'S FINANCIAL STATEMENTS AND FINANCIAL RECORDS FOR THE FISCAL YEAR ENDED SEPTEMBER 30TH, 2025, WAS COMPLETED BY THE ACCOUNTING FIRM OF A, B I, P PC. A B I P IS A CERTIFIED PUBLIC ACCOUNTING FIRM LICENSED TO PRACTICE PUBLIC ACCOUNTANCY IN THE STATE OF TEXAS. THIS IS A B I P THIRD ANNUAL AUDIT OF THE CITY OF KYLE'S FINANCIAL STATEMENTS AND FINANCIAL RECORDS, PER THE CITY CHARTER. THE INDEPENDENT AUDITOR WORKS FOR AND REPORTS TO THE CITY COUNCIL AND NOT FOR THE CITY MANAGER OR STAFF. THIS EVENING, PRESENTING THE INDEPENDENT AUDITOR'S REPORT AT THIS CITY COUNCIL MEETING, WE JOINED MISS JANE PITTMAN. SHE'S A CPA AND AN AUDIT PARTNER WITH THE FIRM, A V I P. NICOLAS GUTIERREZ, ALSO A CPA AND AUDIT MANAGER ON THE CITY OF KYLE ACCOUNT, COULD NOT BE HERE. HE'S DOING EXACTLY THE SAME THING IN CITY OF DEL RIO TONIGHT WITH THEIR COUNCIL. SO ABOUT THE INDEPENDENT

[03:20:02]

AUDITOR'S REPORT, YOU. THIS SLIDE MAY SOUND FAMILIAR FROM THE MARCH 19TH PRESENTATION.

WHAT DOES THE AUDITOR'S INDEPENDENT AUDITORS REPORT TELL YOU AS THE CITY COUNCIL, AS THE GOVERNING BODY AND TO THE RATEPAYERS AND TO CITY MANAGEMENT AND TO THE BONDHOLDERS? THE AUDITOR'S REPORT IS AN INDEPENDENT AND UNBIASED REPORT CARD THAT ADDRESSES THREE VERY SPECIFIC OBJECTIVES FOR THE CITY COUNCIL, CITY MANAGEMENT TAXPAYERS AND FOR THE BONDHOLDERS OF CITY OF KYLE. ONE. THE AUDIT REPORT VALIDATES THE CITY'S FINANCIAL POSITION BASED ON AN INDEPENDENT AUDIT OF THE CITY'S FINANCIAL STATEMENTS, ACCOUNTS AND FUNDS. TWO THE INDEPENDENT AUDIT AND THEIR ASSESSMENT OF THE CITY'S ACCOUNTING AND FINANCIAL REPORTING SYSTEMS. INTERNAL CONTROLS AND COMPLIANCE WITH CITY'S FINANCIAL POLICIES AND PROCEDURES. SO IT'S AN INDEPENDENT ASSESSMENT OF THOSE THREE THINGS. AND FINALLY, THE INDEPENDENT AUDIT PROVIDES COMPLETELY INDEPENDENT ASSURANCE THAT THE CITY'S ACCOUNTING AND FINANCIAL REPORTING SYSTEMS AND PRACTICES ARE IN COMPLIANCE WITH THE RULES AND STANDARDS AS PRESCRIBED BY THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD, OR GATSBY. THIS IS THE NATIONAL BOARD THAT SETS THE THE POLICIES AND PROCEDURES AND STANDARDS FOR ALL GOVERNMENTAL ENTITIES IN THE UNITED STATES.

SO WHETHER YOU'RE IN NEW YORK CITY OR LA, CALIFORNIA OR BOSTON, MASSACHUSETTS, OR KYLE, TEXAS, WE ALL FOLLOW THE SAME STANDARDS. SO THE TYPES OF AUDIT REPORTS THAT CITY CAN RECEIVE. THERE ARE FOUR TYPES OF AUDIT REPORTS THAT AN INDEPENDENT AUDITOR COULD POSSIBLY ISSUE. AND I'LL JUST BRIEFLY COVER RANKED FROM BEST TO WORST. ONE IS AN UNQUALIFIED INDEPENDENT AUDITOR'S REPORT. THAT'S THAT'S AN A+. THAT'S THE BEST THING YOU CAN RECEIVE ON YOUR FINANCIAL STATEMENTS FROM AN INDEPENDENT AUDITOR. NUMBER TWO, GOING DOWN BEST TO WORST A QUALIFIED INDEPENDENT AUDITOR'S REPORT. TO ME, THAT'S A C MINUS. AND THEN MOVING DOWN THAT SCALE, AN ADVERSE REPORT. AND I'LL VERY BRIEFLY TOUCH ON WHAT THESE WHAT CIRCUMSTANCES LEAD UP TO THE INDEPENDENT AUDITOR ISSUING THESE TYPES OF REPORTS. THE ADVERSE REPORT IS THE NEXT TO THE WORST CATEGORY. AND THE WORST OF THE WORST IS THE DISCLAIMER REPORT. BOTH OF THOSE, IN MY OPINION, ARE F'S. THE DISCLAIMER REPORT BASICALLY IS A FINANCIAL CRISIS. YOU MIGHT AS WELL PACK UP. SO HERE'S THE FIRST TYPE OF AUDIT REPORT. UNQUALIFIED AUDIT REPORT. THIS IS ALSO REFERRED TO AS THE CLEAN AUDIT REPORT. THIS IS THE HIGHEST LEVEL OR THE BEST TYPE OF INDEPENDENT AUDITOR'S REPORT THAT CAN BE ISSUED FOR AUDIT OF ANY GOVERNMENT ENTITY IN THE UNITED STATES OF AMERICA. LIKE I SAID, THIS IS A IN MY OPINION, A LETTER GRADE A+. IT REPRESENTS EXCELLENCE FROM ALL ASPECTS. GOING FROM BEST TO WORST. THE NEXT TYPE OF AUDIT REPORT IS QUALIFIED AUDIT REPORT. THIS TYPE OF AUDIT REPORT IS GENERALLY ISSUED WHEN A SIGNIFICANT ACCOUNTING DEFICIENCY OR NONCOMPLIANCE WITH ACCOUNTING STANDARD IS DISCOVERED DURING THE INDEPENDENT AUDIT. IT CAN ALSO BE ISSUED WHEN THERE IS A SITUATION OF AUDIT SCOPE LIMITATION AFFECTING A SPECIFIC FUND OR FINANCIAL FUNCTION. THIS TYPE OF AUDITOR'S REPORT IS EQUIVALENT TO RECEIVING LETTER GRADE C MINUS A QUALIFIED AUDITOR'S REPORT SIGNIFIES AVERAGE AND RECORDED AS IMPROVEMENTS BY THE GOVERNMENT GOVERNMENTAL ENTITY. GOING FROM BEST TO WORST. THE.

THE THIRD CATEGORY IS THE ADVERSE INDEPENDENT AUDITOR'S REPORT. THIS TYPE OF. AN AUDIT REPORT IS ISSUED WHEN THE INDEPENDENT AUDITOR FINDS THAT THE FINANCIAL MANAGEMENT

[03:25:05]

SYSTEM'S ACCOUNTING AND REPORTING SYSTEMS AND THE ENTITY'S INTERNAL CONTROLS ARE IN SUCH POOR STATE THAT THE INDEPENDENT AUDITOR HAS BASICALLY DETERMINED THAT THE ENTITY'S FINANCIAL STATEMENTS CANNOT BE TRUSTED OR RELIED UPON. THIS TYPICALLY HAPPENS WHEN THERE ARE SIGNIFICANT ERRORS, OMISSIONS, MATERIAL DEPARTURE FROM GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND GASB STANDARDS, OR NONCOMPLIANCE WITH REGULATORY REQUIREMENTS. THIS TYPE OF AUDITOR'S REPORT SHOULD BE A MAJOR CONCERN FOR THE GOVERNING BOARD, MANAGEMENT, TAXPAYERS, CREDIT RATING AGENCIES AND BOND HOLDERS. AND FINALLY, THE VERY BOTTOM AND THE WORST KIND OF INDEPENDENT AUDITOR'S REPORT. A CITY OR GOVERNMENT CAN RECEIVE IS THE DISCLAIMER AUDIT REPORT. THIS TYPE OF AN AUDIT REPORT IS ISSUED WHEN THE SCOPE OF THE INDEPENDENT AUDITOR'S EXAMINATION WAS LIMITED IN SUCH A WAY THAT THEY WERE UNABLE TO ISSUE A REPORT ON THE FINANCIAL STATEMENTS. TYPICALLY, THIS HAPPENS WHEN THE SCOPE IS LIMITED OR OR LIMITATIONS ARE IMPOSED BY MANAGEMENT OR STAFF. THERE ARE MISSING INFORMATION, FINANCIAL INFORMATION AND RECORDS, UNRELIABLE FINANCIAL INFORMATION OR SIGNIFICANT FINANCIAL IRREGULARITIES AND UNCERTAINTIES. THIS TWO THE WORST KIND OF REPORT YOU CAN RECEIVE. IF THERE IS AN ENTITY THAT DOES RECEIVE THIS REPORT, IT CREATES A FINANCIAL CRISIS.

THERE IS LOSS OF FINANCIAL CREDIBILITY AND THERE IS IMMEDIATE ATTENTION FROM STATE REGULATORY REGULATORS AND BONDHOLDERS FOR INTERVENTION. SO IN SUMMARY, IMPLICATIONS OF AN INADEQUATE INDEPENDENT AUDITOR'S REPORT. SO IF YOU GET A BAD REPORT, WHAT HAPPENS? DOWNGRADE OF CREDIT RATINGS BORROWING GETS MORE EXPENSIVE FOR THE ENTITY GRANT AND STATE FEDERAL FUNDING ARE AT RISK OR LITERALLY WILL DRY UP. THERE ARE LEGAL AND COMPLIANCE, EXPOSURE RISKS, INTERNAL OPERATIONAL CHALLENGES, LOSS OF PUBLIC TRUST AND CREDIBILITY DAMAGE. AND THERE SHOULD BE A SEVENTH ONE THAT I DID NOT LIST HERE. IT WOULD BE THE INTERVENTION FROM THE STATE AND FEDERAL AGENCIES. SO WITH THAT AS A CLIFFHANGER, I AM NOW GOING TO INTRODUCE TO YOU MISS JANET PITTMAN. SHE'S THE AUDIT PARTNER IN CHARGE OF OUR AUDIT.

SHE'S WITH ABI PCPA. WHEN SHE IS DONE, I WILL COME BACK AND GO OVER THE OPTIONS WITH YOU.

IT'S ALL YOURS. THANK YOU. AND LET ME JUST. GOOD EVENING, MAYOR. COUNCIL MEMBERS. THANK YOU FOR HAVING ME HERE THIS EVENING. TO GO OVER THE RESULTS OF YOUR 2025 FISCAL YEAR END AUDIT. I WANTED TO TELL YOU A LITTLE BIT ABOUT WHAT WE WE HAVE TO FOLLOW SOME RULES AND REGULATIONS ON PERFORMING OUR AUDIT. WE HAVE TO FOLLOW GENERALLY ACCEPTED AUDITING STANDARDS, WHICH IS ISSUED BY THE AICPA, AMERICAN INSTITUTE OF CERTIFIED CERTIFIED PUBLIC ACCOUNTANTS. BUT BECAUSE YOU ALSO SPEND AND RECEIVE FEDERAL DOLLARS, WE ALSO HAVE TO FOLLOW GOVERNMENT AUDITING STANDARDS THERE. THOSE STANDARDS ARE ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES, AND THEN ALSO, AS PERVEZ SAID, WE ALSO HAVE TO FOLLOW ALL THE GASB STANDARDS WHICH TELL US HOW TO REPORT THE ITEMS IN YOUR FINANCIAL STATEMENTS. JUST A LITTLE BACKGROUND ON WHAT THE RULES AND REGULATIONS THAT WE HAVE TO FOLLOW. SO WHAT DO WE DO? WE COME IN, WE CAME IN, I BELIEVE, IN EARLY DECEMBER, AND WE START DOING OUR RISK ASSESSMENT. THAT'S THE FIRST PHASE OF OUR AUDIT PROCESS. SO WE'RE WE'RE REVIEWING THE PROCESSES AND YOUR INTERNAL CONTROLS AND YOUR SEGREGATION OF DUTIES OVER YOUR MAJOR PROCESSES, WHICH IS ALL OF YOUR FINANCIAL REPORTING. HOW, HOW PAYROLL'S PROCESSED, HOW CASH

[03:30:02]

DISBURSEMENTS ARE PROCESSED, PROCESSED CASH RECEIPTS. AND WE'RE GOING AROUND AND WE'RE TALKING TO PEOPLE THAT ARE PERFORMING THOSE FUNCTIONS WITHIN THE CITY. SO WE'RE WE'RE ACROSS THE CITY AND TALKING TO THE PAYROLL PEOPLE AND TO THE PROCUREMENT AND TO VENDOR PEOPLE THAT ARE PROCESSING ACCOUNTS PAYABLE. AND WE'RE TALKING TO THEM. WE'RE DOCUMENTING THE INTERNAL CONTROLS AND SEGREGATION OF DUTIES. AFTER WE DO THAT, WE ALSO TAKE A SAMPLE FROM EACH CYCLE THAT IS PERFORMED AT THE CITY AND WE TEST THOSE INTERNAL CONTROLS. SO WE'RE MAKING SURE WHAT THEY TOLD US THEY'RE ACTUALLY DOING. AND THAT DETERMINES OUR AUDIT RISK, WHICH IS THE FOUNDATION OF OUR AUDIT PROCESS. WE HAVE VERY SPECIFIC AUDIT PROGRAMS THAT WE'RE REQUIRED TO FOLLOW THAT TELL US HOW TO HOW TO AUDIT EACH SECTION OF YOUR FINANCIAL STATEMENTS. SO AFTER WE FINISH THAT, THEN WE ALSO DETERMINE THE MAJOR FEDERAL PROGRAMS THAT WE HAVE TO AUDIT. WE'LL TALK A LITTLE MORE ABOUT THAT LATER.

SO WHAT IS THE FOUNDATION OF AN AUDIT IS AFFIRMING THESE ASSERTIONS OVER YOUR FINANCIAL STATEMENTS EXISTENCE THAT YOUR, YOUR ASSETS AND YOUR LIABILITIES EXIST, THAT THEY ARE COMPLETE, THAT ALL THE TRANSACTIONS THAT HAVE HAPPENED THROUGH THE YEAR, THEY'RE COMPLETE, THAT THEY'RE ACCURATE. ALSO, THE NUMBERS ON YOUR FINANCIAL STATEMENTS ARE ACCURATE, THAT YOU HAVE RIGHTS TO THOSE ASSETS AND OBLIGATIONS TO PAY THOSE LIABILITIES. WE'RE LOOKING AT CUT OFF, MAKING SURE EVERYTHING'S RECORDED IN THE PROPER IN THE PROPER YEAR. AND WE'LL TALK ABOUT THAT TOO. SO AND ALSO THE VALUATION AND ALLOCATION MAYBE OF YOUR TAXES.

SO YOUR TAXES GET ALLOCATED BETWEEN GENERAL FUND DEBT SERVICE FUND. SO WE'RE LOOKING TO MAKE SURE THAT THAT PROPER PROPER ALLOCATION. AND THEN FINALLY THE PRESENTATION AND DISCLOSURE IS ON YOUR FINANCIAL STATEMENTS, HOW THEY'RE PRESENTED AND ALL THE DISCLOSURES THAT ARE REQUIRED BY THE GASB. SO THE AUDIT PROCEDURES THAT INCLUDE, AGAIN, WE HAVE THIS WORK PROGRAM AND IT'S STEP BY STEP OF WHAT WE'RE TO DO. I'M JUST GOING TO HIGHLIGHT A FEW THINGS. SO HOW DO WE HOW DO WE AUDIT CASH? WELL, WE'RE MAKING SURE THAT YOU'RE PERFORMING YOUR BANK RECORDS, RECONCILIATIONS ON A TIMELY BASIS, NOT FIVE MONTHS AFTER THE, AFTER THE MONTH END THAT THEY'RE DONE MONTHLY, THEY AGREE TO THE GENERAL LEDGER, WHOEVER'S PERFORMING THEM, SOMEBODY ELSE'S REVIEWING THEM, AGREEING THEM TO THE GENERAL LEDGER. ALONG WITH THAT, WE ALSO ARE CONFIRMING WITH THE BANK THE BALANCES IN YOUR FINANCIAL STATEMENTS. SO AN OUTSIDE CONFIRMATION IS THE HIGHEST LEVEL OF ASSURANCE THAT WE CAN OBTAIN BECAUSE IT'S COMING FROM AN OUTSIDE PERSON. SAME THING WITH INVESTMENTS.

YOU HAVE A LOT OF MONEY IN TAX POOL AND TECH STAR, AND WE'RE ABLE TO CONFIRM THOSE BALANCES, MAKING SURE THEY AGREE TO YOUR FINANCIAL STATEMENTS AND THAT THE INTEREST THAT YOU EARN ON THOSE ACCOUNTS ARE IN THE FINANCIAL STATEMENTS AND IN THE PROPER FUNDS WHERE THE TAX POOL AND TEXTS ARE, ARE RECEIVABLES, RECEIVABLES, THEY'RE PRETTY MUCH AUDITED BETWEEN ACCOUNTS RECEIVABLE. SO ACCOUNTS RECEIVABLE IS MONEY THAT YOU'RE EXPECTING TO COLLECT. YOU JUST HAVEN'T GOTTEN IT YET, FOR EXAMPLE. AND THROUGH THE RECEIVABLES WE CAN ALSO TEST REVENUE. SO STATE COMPTROLLER GIVES YOU YOUR SALES TAX. THEY ARE TWO MONTHS BEHIND. SO WHEN YOU YOUR AUGUST AND SEPTEMBER SALES TAX RECEIPTS, YOU DON'T GET THOSE UNTIL OCTOBER AND NOVEMBER. NOW WE'RE LOOKING AT CUTOFF PROCEDURES. WE'RE MAKING SURE THAT THOSE ARE RECORDED AS A RECEIVABLE AND A REVENUE IN YOUR FINANCIAL STATEMENT IN THE PROPER PERIOD. CAPITAL ASSETS.

WE ARE REALLY FOCUSED IN THE CAPITAL ASSETS. YOU HAVE A LOT OF CONSTRUCTION PROJECTS GOING ON WITH A LOT OF BOND MONEY. SO WE'RE REALLY CONCERNED THAT YOU'RE USING THE BOND MONEY FOR THE WHAT THE BOND WAS ISSUED FOR. AND ALONG WITH THAT, WE'RE DOING A LOT OF PROCUREMENT TESTING, MAKING SURE THAT YOU'RE PROPERLY BIDDING YOUR YOUR CONTRACTORS AND WHATNOT.

OKAY. AND ACCOUNTS AND WAGES PAYABLE. AGAIN, THERE'S A CUTOFF THERE. YOU MAY NOT GET AN INVOICE FOR SERVICES AUGUST, SEPTEMBER SERVICES UNTIL OCTOBER OR NOVEMBER. WE WANT TO MAKE SURE THAT THEY ARE PROPERLY RECORDED INTO SEPTEMBER'S FINANCIAL

[03:35:01]

STATEMENTS. SO WE'RE WE'RE PICKING UP SUBSEQUENT DISBURSEMENTS THAT ARE MADE, MAKING SURE LOOKING AT THE INVOICE, MAKING SURE THAT THE EXPENDITURE AND THE PAYABLE IS.

IN THE PROPER PERIOD, WAGES PAYABLE. SO YOU'RE AT THE END OF THE YEAR, SEPTEMBER, OCTOBER, YOU PROBABLY STRADDLE A WEEK OR TWO. SOME OF THE SOME OF THE WORK WAS DONE IN SEPTEMBER, SOME IN OCTOBER. SO WE'RE MAKING SURE THAT WE'VE GOT ONLY SEPTEMBER. EXPENDITURES RECORDED IN ACCOUNTS PAYABLE. ALSO, THE DEBT SERVICE IS NOT LISTED HERE, BUT WE DO LOOK AT ALL THE DEBT SERVICE PAYMENTS, MAKING SURE THAT THE PRINCIPAL AND INTEREST ARE BEING PAID ON TIME. AND WE'VE NEVER FOUND ANY ISSUES WITH THOSE REVENUES. AGAIN, WE WE LOOKED AT THE RECEIVABLES. SO WE'RE LOOKING AT SALES TAX. WE CAN CONFIRM YOUR PROPERTY TAXES WITH HAYS COUNTY. WE CONFIRM THE REVENUE THAT'S RECEIVED. AND THEY ALSO PROVIDE US AT THE END OF THE YEAR, A LISTING OF THE DELINQUENT TAX RECEIVABLE THAT SHOULD BE RECORDED PROPERLY ON YOUR FINANCIAL STATEMENTS. WE ALSO DO SOME ANALYTICAL PROCEDURES. WE'RE ABLE TO LOOK AT COMPARISON BETWEEN THIS YEAR AND LAST YEAR IF THERE IS ANY WIDE SWINGS. WE'RE ALSO LOOKING AT THE COMPARISON BETWEEN YOUR CURRENT YEAR AND YOUR BUDGET TO MAKE SURE EVERYTHING'S KIND OF IN LINE. AND THEN WE ALSO DO SOME MATERIAL TESTING. WE GET A GENERAL LEDGER DETAIL OF ALL OF THE REVENUES AND ALL THE EXPENSES. AND WE WE PICK OUT MATERIAL ITEMS AND MAKE SURE THAT THEY ARE PROPERLY RECORDED IN YOUR FINANCIALS. AND THEN WE DO OUR COMPLIANCE TESTING ON OUR FEDERAL SINGLE AUDIT, WHICH THIS IS THE FIRST YEAR YOU'VE HAD THIS SINGLE AUDIT IN QUITE A WHILE. SO WE'LL TALK ABOUT THAT IN A LITTLE BIT. SO ALSO THIS THIRD PROCESS IS LOOKING AT YOUR MAJOR FEDERAL PROGRAMS. SO WE'RE AGAIN DOING A RISK ASSESSMENT OVER THE INTERNAL CONTROLS OVER THE COMPLIANCE REQUIREMENTS THAT ARE ASSOCIATED WITH YOUR FEDERAL FEDERAL EXPENDITURES. WE TEST THOSE INTERNAL CONTROLS AGAIN, AND THEN WE PERFORM TESTS ON THE COMPLIANCE REQUIREMENTS. SO THAT'S SUCH AS ALLOWABLE COSTS. SO WE'RE DOCUMENTING THE HOW YOU'RE DETERMINING THAT YOU'RE SPENDING YOUR FEDERAL FUNDS CORRECTLY. WE'RE TESTING THOSE CONTROLS. AND THEN WE'RE LOOKING PULLING INVOICES AND MAKING SURE THAT YOU'RE ACTUALLY SPENDING THEM ON THE FEDERAL PROGRAM THAT YOU'RE, YOU'RE UNDER. AND HERE WE ARE AT THE AUDIT CONCLUSION. OUR PARTNER AND OUR MANAGER, WE REVIEW ALL THE WORK. WE HAVE MANY CHECKLISTS THAT WE USE TO DETERMINE THAT OUR WORK WAS PERFORMED IN ACCORDANCE WITH OUR AUDITING STANDARDS, BOTH GENERALLY ACCEPTED AUDITING STANDARDS AND GOVERNMENT AUDITING STANDARDS. FINALIZATION IS WE WE DRAFT OUR AUDIT REPORTS. WE REVIEW THE FINANCIAL STATEMENTS THAT YOUR CITY PROVIDES TO US. WE CHECK THEM AGAINST OUR AUDITED NUMBERS TO MAKE SURE THAT THEY ARE THE SAME AS WHAT'S IN YOUR FINANCIALS. AND AGAIN, WE'RE HERE TONIGHT TO DO THE PRESENTATION. WE ALREADY TALKED ABOUT. SO THE INDEPENDENT AUDITOR'S REPORT, WE TALKED ABOUT THE AUDITED STANDARDS. WE FOLLOW. THE PURPOSE OF AN AUDIT IS TO FORM AN INDEPENDENT OPINION ON WHETHER OR NOT YOUR FINANCIALS ARE PRESENTED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, WHICH IS GASB. SO I'VE GOT TWO MORE YEARS. I'M GOING TO GET YOU TO CALL THIS UNMODIFIED. OUR OPINION IS CALLED UNMODIFIED. IT USED TO BE CALLED UNQUALIFIED, BUT IT CHANGED AND IT'S NOW CALLED UNMODIFIED. AND WE DID NOT HAVE ANY MODIFYING STATEMENTS ON YOUR FINANCIALS. IT IS AN UNMODIFIED OPINION. IT'S THE HIGHEST LEVEL OF ASSURANCE THAT WE, AS YOUR INDEPENDENT AUDITORS, CAN GIVE YOU ON YOUR FINANCIAL STATEMENTS. AND IT'S THE BEST, THE BEST OPINION THAT YOU CAN RECEIVE. OUR OTHER REPORT IS ON GOVERNMENT AUDITING STANDARDS, AND THAT'S WHERE WE ARE REQUIRED TO TEST YOUR INTERNAL CONTROLS OVER FINANCIAL REPORTING AND COMPLIANCE WITH OTHER MATTERS. THIS REQUIRES US TO CONSIDER INTERNAL CONTROLS OVER YOUR FINANCIAL REPORTING AND IN PLAN, AND THAT HELPS US IN OUR PLANNING AND PERFORMING OUR AUDIT. BUT WE ARE PLEASED TO REPORT THAT WE DID NOT HAVE ANY MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES, OR ANY OTHER NONCOMPLIANCE RELATED TO THE YOUR FINANCIAL STATEMENTS AND THE INTERNAL CONTROLS OVER REPORTING. OKAY. NOW WE'LL TALK ABOUT THE SINGLE

[03:40:07]

AUDIT, WHICH IS REQUIRED BY THE UNIFORM GUIDANCE. AGAIN, THAT IS ISSUED BY THE OFFICE OF MANAGEMENT AND BUDGET, THE FEDERAL GOVERNMENT. YOU ARE REQUIRED TO HAVE A WE CALL IT A SINGLE AUDIT BECAUSE YOU SPENT OVER $1 MILLION IN FEDERAL EXPENDITURES THIS YEAR. EXCUSE ME, YOU ACTUALLY SPENT $10.5 MILLION OF FEDERAL DOLLARS. MOST ALL OF THAT WAS THE ARPA FUNDS. THE AMERICAN RESCUE PLAN DOLLARS THAT YOU RECEIVED. YOU STILL HAVE ONE POINT MIL, $1.5 MILLION OBLIGATED AS OF SEPTEMBER. I BELIEVE THAT'S ALL BEEN SPENT NOW. BY THE END, IT HAD TO BE SPENT BY THE END OF THE YEAR. AGAIN, WE HAD AN UNMODIFIED OPINION ON THOSE ON THOSE COMPLIANCE REQUIREMENTS IS WHAT WE'RE TESTING. AND NO INTERNAL CONTROLS, NO QUESTION COSTS OR FINDINGS RELATED TO YOUR FEDERAL DOLLARS. THERE IS A I DON'T YOU HAD THIS IN YOUR PACKET. IT'S A VERY SMALL REPORT AS THE SINGLE AUDIT REPORT ON THE FEDERAL FUNDS.

THE THRESHOLD, AGAIN, IS $1 MILLION. YOU DID NOT THE CITY DID NOT QUALIFY AS A LOW RISK AUDITEE THIS YEAR BECAUSE YOU HAVE TO HAVE TWO CONSECUTIVE YEARS OF A SINGLE AUDIT BEING PERFORMED WITH NO FINDINGS OR QUESTION COSTS. SO IT'S NOT A BAD THING. IT'S JUST YOU HAVEN'T YOU HAVEN'T HAD THOSE FEDERAL FEDERAL DOLLARS FOR FOR A WHILE. AND ALL IT MEANS IS WE'RE REQUIRED TO AUDIT 40% OF YOUR FEDERAL DOLLARS. BUT WE AUDITED PROBABLY 98% BECAUSE MOST OF YOUR FEDERAL DOLLARS THIS YEAR WERE RELATED TO THE ARPA FUNDS. SO WE DID EXCEED THAT 40% THAT WERE REQUIRED TO AUDIT, IN ADDITION TO THE FINANCIAL STATEMENTS, WE ARE ALSO REQUIRED TO ISSUE A LETTER ON THE CONDUCT OF THE AUDIT. IT'S COMMUNICATIONS FROM US INDEPENDENT AUDITORS TO YOU, THE GOVERNANCE BOARD. WE ARE SO THESE ARE ALL REQUIRED DISCLOSURES. WE'RE REQUIRED TO TELL YOU IF YOU HAD NEW ACCOUNTING POLICIES THIS YEAR THAT WE ADOPTED, THAT THE CITY ADOPTED, AND WE DID ADOPT GASB 101. SO THAT'S WHERE WE ARE ON ALL OUR STANDARDS FOR GASB. IT'S RELATED TO COMPENSATED ABSENCES AND HOW YOU ACCOUNT FOR THOSE IN YOUR FINANCIAL STATEMENTS. WE'RE ALSO REQUIRED TO TELL YOU YOU DO HAVE SOME ACCOUNTING ESTIMATES IN YOUR FINANCIALS. AS YOU KNOW, FINANCIAL ESTIMATES CAN CHANGE.

WE DID REVIEW THE THE HOW YOU ACCOUNTED FOR THOSE ESTIMATES. AND WE DID AGREE WITH IT. THE LARGE ONES IN THERE IS THE ACTUARIAL VALUATION OF YOUR PENSION AND YOUR OPEB LIABILITY, WHICH IS YOUR TMRS INFORMATION, FAIR VALUE OF INVESTMENTS, AND THEN ALSO YOUR USEFUL LIVES ON YOUR CAPITAL ASSETS. WE NOTE THAT THE FINANCIAL STATEMENTS, DISCLOSURES PREPARED BY THE CITY WERE NEUTRAL, CONSISTENT, AND CLEAR. WE WERE REQUIRED TO TELL YOU IF WE HAD ANY DIFFICULTIES IN PERFORMING THE AUDIT, ANY MISSTATEMENTS THAT WE FOUND THAT WERE HAD TO MAKE TO YOUR FINANCIAL STATEMENTS. AND IF WE HAD ANY DISAGREEMENTS, DISAGREEMENTS WITH MANAGEMENT AND PERFORMING OUR AUDIT. AND THOSE THREE THINGS WERE PLEASED TO SAY THERE WERE NONE.

MANAGEMENT PROVIDES US A LETTER. IT'S CALLED MANAGEMENT REPRESENTATION LETTER. IT JUST SAYS THEY GAVE US EVERYTHING THAT WE ASKED FOR. WE GOT EVERYTHING WE NEEDED TO PERFORM OUR AUDIT. WE'RE REQUIRED TO TELL YOU IF THEY IF MANAGEMENT HAD GONE OUT SHOPPING FOR MAYBE A SECOND OPINION ON AN AUDITING OR AN ACCOUNTING SITUATION, AND WE'RE NOT AWARE THAT THAT HAPPENED. THERE'S TWO SECTIONS IN YOUR FINANCIAL STATEMENT THAT WE DON'T WE DON'T AUDIT.

WE DON'T AUDIT YOUR INTRODUCTORY SECTION, WHICH IS, HAS YOUR ORGANIZATION CHART. WE DON'T ISSUE AN OPINION ON THOSE SECTIONS. WE LOOK AT THE STATISTICAL SECTION. FOR MOST OF THE NUMBERS IN THERE, WE'RE MAKING SURE THAT THEY TIE TO THE FRONT OF THE REPORT AND WHATNOT. BUT IT'S A TEN YEAR TREND INFORMATION. AND THERE'S A LOT OF NUMBERS THAT ARE NOT FINANCIAL, FINANCIAL IN NATURE. AS PART OF OUR AUDIT, WE'RE ALSO REQUIRED TO AUDIT THE PUBLIC FUNDS INVESTMENT ACT, AND THAT YOUR INVESTMENT POLICY DOES ADHERE TO THAT ACT. AND THE CITY WE FOUND IS IN COMPLIANCE WITH THAT ACT. WE HAD ONE MINOR RECOMMENDATION.

WHEN YOU START, AS YOU'RE GROWING AND YOU'RE GETTING MORE FEDERAL DOLLARS AND MAYBE SOME STATE DOLLARS, WE RECOMMENDATION IS JUST TO HAVE THAT CENTRALIZED, MAYBE UNDER

[03:45:03]

ONE INDIVIDUAL, ONE DEPARTMENT. THERE'S A LOT OF REPORTING REQUIREMENTS THAT GO ON WITH WHEN YOU RECEIVE THOSE TYPES OF DOLLARS, REPORTING TO THE STATE OR TO THE FEDERAL GOVERNMENT.

AND I THINK IT JUST WOULD BE EASIER AND KEEP YOU IN COMPLIANCE WITH THE REQUIREMENTS OF THE PROGRAM AND THE GRANT DOCUMENT. JUST A SUGGESTION. THAT IS THE END OF MY PRESENTATION. THERE'S MINE AND NIC'S INFORMATION. IF YOU NEEDED TO CONTACT US, AND I'LL TAKE ANY QUESTIONS. IF ANYONE HAS ANY QUESTIONS. ALL RIGHT. DO WE HAVE QUESTIONS? I'LL LET YOU ALL GO FIRST. OKAY. COUNCILMEMBER GIBBS IS GOING TO HAVE A LOT OF QUESTIONS. SO, COUNCILMEMBER ZAPATA MEDINA, WE WANT TO START ON THAT SIDE. YEAH. YOU GOT ANY QUESTIONS? ALL RIGHT. I'M GOING TO START WITH ME. FIRST AND FOREMOST, THANK YOU FOR THE PRESENTATION.

SURE. THAT WAS INSIGHTFUL. I MEAN, YOU AND I SPOKE OVER THE PHONE AND THERE WAS A LOT OF THINGS THAT I DIDN'T REALIZE AFTER. THIS IS MY FOURTH AUDIT THAT I'VE LOOKED AT. WHAT I DIDN'T REALIZE IS THIS RIGHT HERE IS WHAT YOU GUYS AUDIT, RIGHT? BUT THIS RIGHT HERE IS WHAT WE GET. WE AUDIT ALL THE NUMBERS IN THIS IS WHAT YOU SUBMITTED TO US, CORRECT. IT SAYS IS THAT THE SINGLE AUDIT I CAN'T SEE THAT'S THE SINGLE AUDIT. THAT'S JUST A SEPARATE REPORT. AGAIN WE HAVE TWO OPINIONS IN THERE. THE. BUT YOU GUYS DON'T DO THIS. NO, MA'AM.

OKAY. THAT'S WHERE I WAS KIND OF CONFUSED. I WAS LIKE, WHEN I LOOK AT THE AUDIT, I WOULD JUST ASSUME THAT ALL THIS WAS PART OF THE AUDIT. AND THEN WHEN I REALIZED IT WASN'T THEN THAT THAT REALLY DREW MY ATTENTION TO, OKAY, SO WHAT DID IT, WHAT IS IT THAT WE'RE, WE'RE AUDITING? AND IT'S THROUGH OUR CONVERSATION, I REALIZED IT WAS MORE ABOUT PROCESSES, MAKING SURE THAT EVERYTHING THAT WE'RE SAYING WE'RE DOING IS WHAT WE'RE DOING. SO FOR EXAMPLE, WE DON'T AUDIT THINGS LIKE BANK ACTIVITY, RIGHT? WE, I THINK I THINK YOU SAID YOU, WE, YOU RECEIVED A STATEMENT AT THE AT THE END OF DECEMBER, BUT IT WAS A STATEMENT, BUT IT WASN'T LIKE YOU DON'T GO THROUGH JANUARY, FEBRUARY, MARCH AND PULL OUT SAMPLES OR PULL OUT ACTIVITY.

NO, WE DO, WE DO, WE, WE PULL SAMPLES FROM ALL THE REVENUES AND ALL THE EXPENDITURES FROM THE BANK. OH, FROM THE BANK. YES. WE'RE ONLY AUDITING THE THE END OF THE YEAR. ONE THING THAT I LEFT OUT THOUGH, IS WHAT WE DO LOOK AT TRANSACTIONS. SO WE STRADDLE THE END OF SEPTEMBER AND THROUGH OCTOBER, MAKING SURE THAT THE TRANSFERS ARE RECORDED IN THE RIGHT PERIOD. SO IF YOU'RE TRANSFERRING FROM ONE ACCOUNT TO ANOTHER ACCOUNT THAT THEY BOTH HAPPEN IN THE SAME PERIOD. SO IF YOU TRANSFER IN SEPTEMBER OR THE BEGINNING OF OCTOBER, JUST SO WE'RE NOT, WE'RE MAKING SURE THAT YOU'RE NOT OVERSTATING YOUR CASH. OKAY? AND YOU, YOU, YOU CHECKED THAT WITH THE BANK OR IS THAT JUST THROUGH THE FUNDS THAT WE DO THAT WITH THE GENERAL LEDGER AND, AND THE BANK STATEMENTS. OKAY. I SO WE KNOW WHEN WE THINK OF AUDIT, I THINK OF LIKE THESE REALLY BROAD THINGS, FOR EXAMPLE, BUDGET OVERRUNS. DO WE KNOW, DO YOU GUYS DO BUDGET OVERRUNS? LIKE IF WE SEE, HEY, WE'RE OVER BUDGET OVER HERE, IS THAT SOMETHING THAT YOU GUYS LOOK FOR? WE DO NOT OPINE ON YOUR BUDGET TO ACTUAL THAT IS LISTED AS A REQUIRED SUPPLEMENTARY INFORMATION. IT'S IT'S I'M NOT SURE WHAT PAGE IT'S ON ITS WAY IN THE BACK. BUT WE DO LOOK TO MAKE SURE. SO IF YOU BUDGET AT A LEVEL WHERE IT'S YOU BUDGET BY FUND, WE'LL MAKE SURE YOU'RE NOT OVERSPENDING IN THAT FUND. BUT AGAIN, THAT'S JUST, THAT'S JUST STUFF THAT THE CITY SAYS THAT WE'RE DOING. RIGHT? SO FOR EXAMPLE, YOU'RE NOT REALLY YOU'RE NOT TESTING THE FUND VERSUS THE BANK STATEMENTS.

IT'S THE FUND MAKING SURE THE FUND IS GOING FROM ONE TO THE OTHER THE WAY IT'S SUPPOSED TO, MORE LIKE, LIKE, LIKE I SAID, POLICY, LIKE WE'RE FOLLOWING OUR POLICIES. IF I'M WRONG, LET ME KNOW. I'M JUST TRYING TO UNDERSTAND IT. I THINK WE'RE TESTING AGAIN. THE FOUNDATION IS TESTING THE ACCURACY, THE CUT OFF, THE BALANCE, THE RIGHTS THAT YOU HAVE, THOSE THOSE FUNDS, AGAIN, THAT. OKAY, NO, I APPRECIATE THAT. I'M GOING TO HOLD OFF BECAUSE THEY THEY MIGHT HAVE SOME QUESTIONS THAT I THAT'LL, I DON'T WANT TO DUPLICATE TOO MUCH. SO COUNCIL MEMBER GARZA, DO YOU WANT TO GO NEXT. OKAY. CORRECT ME IF I'M WRONG, I BELIEVE FROM MR.

[03:50:02]

MOHIT'S PRESENTATION THEY SAID THAT THE SIGNIFICANT DRAWDOWN WAS DUE TO CAPITAL EXPENDITURES AS A ONE TIME OUT OF THE GENERAL FUND, IT WAS A BUDGETED ITEM. PART OF IT WAS A TRANSFER THAT YOU DID TO THE CAPITAL PROJECTS FUND TOO. SO WHAT I'M NOTICING IS, IS THAT WE HAD SIGNIFICANT DEPARTURES FROM LICENSES AND PERMITS AND CHARGES FOR SERVICES THAT WENT SIGNIFICANTLY BELOW WHAT WE HAD BUDGETED FOR. SO I'M A LITTLE CONCERNED ABOUT WHETHER THAT WAS REALLY FOR CIP OR WHETHER THAT WAS FOR SOMETHING THAT WE OVER AGGRESSIVELY BUDGETED FOR.

THE THE THE TRANSFER THAT WAS DONE OUT OF YOUR GENERAL FUND WENT INTO YOUR CAPITAL PROJECTS FUND. SO THOSE DOLLARS WERE SPENT THERE. DO YOU WANT TO ADDRESS THE CHANGES IN YOUR LICENSE PERMITS? SO COUNCIL MEMBER GARZA, WE'RE TALKING ABOUT TWO SEPARATE THINGS. ONE IS WHAT WAS ADOPTED IN THE BUDGET, THE BUDGET THAT THE COUNCIL ADOPTED FOR FISCAL YEAR 25. THEY ALLOWED US TO DRAW DOWN ON SURPLUS FUND BALANCE IN THE GENERAL FUND FOR ONE TIME CAPITAL EXPENDITURES. SO YOU'LL SEE THE BUDGET FOR REVENUES IS LESS THAN THE TOTAL EXPENDITURES THAT COUNCIL APPROVED. IT'S ABOUT $8.8 MILLION. SO THAT'S WHAT WE WENT OVER WHEN WE SHOWED YOU THE DIFFERENCE IN FUND BALANCE. THE SECOND PART OF YOUR QUESTION PERTAINS TO THE ACTUAL REVENUES THAT WE COLLECTED DURING FISCAL YEAR 25. SO THE REVENUES WERE UNDER BUDGET. YOU ARE ABSOLUTELY CORRECT. DEVELOPMENT REVENUES WERE BELOW OUR ESTIMATE AND PROJECTIONS. THERE WERE A NUMBER OF FACTORS THAT WENT INTO IT. WHY IT HAPPENED, THE PLAN REVIEWS AND THE REGULATIONS. STATE LAW ACTUALLY CHANGED ON HOW WE CAN BUILD THE DEVELOPERS ON THOSE PLAN REVIEWS. SO THE DEVELOPMENT REVENUES WERE BELOW BUDGET.

SALES TAX WAS ABOUT 4% BELOW BUDGET, AND PROPERTY TAX WAS ANOTHER 1%. RIGHT. I'M JUST SEEING THOSE DEFICIENCIES ARE CLOSE TO $8 MILLION, WHICH IS CLOSE TO THE AMOUNT THAT WE DREW DOWN OUR BUDGET. SO IT'S KIND OF LIKE IF WE WOULD HAVE BEEN ACCURATE IN THOSE THINGS, WOULD WE HAVE DRAWN DOWN TO BELOW OUR RESERVE LEVEL HAD WE HIT OUR TARGET ON THE REVENUE PROJECTIONS? YES, YES, WE WOULD NOT HAVE THAT DRAWDOWN. THAT ONE TIME DRAWDOWN WOULD HAVE HAD ZERO. NET IMPACT WOULD HAVE BEEN ZERO. OKAY. AND THEN I SEE THAT THERE IS A PRETTY SIGNIFICANT JUMP IN THE COMPENSATED ABSENCES. AND WAS THAT DUE TO THE NEW ACCOUNTING RULES, OR WAS THAT MORE IN LINE WITH ACTUAL GROWTH THAT THAT WAS OUR IMPLEMENTATION OF THE GASB 101. OKAY. THEY REQUIRED MORE CAPTURING, MORE SICK LEAVE AND, AND THOSE TYPES OF ITEMS THAT IN THE PAST, WE DIDN'T HAVE TO CAPTURE THOSE DOLLARS. OKAY. SO IT WAS DIRECTLY RELATED TO THAT. OKAY. AND THEN I WANT TO KNOW KIND OF WHAT THE POLICY REGARDING TRANSFERS FROM THE UTILITY FUNDS TO THE GENERAL FUND IS. THIS IS IN PARTICULAR IMPORTANCE BECAUSE WE'RE SEEING TRANSFERS, BUT WE'RE ALSO HAVING STUDIES THAT ARE SAYING WE DON'T HAVE ENOUGH REVENUE TO PAY OUR BILLS FROM THERE. SO FOR THE ADOPTED BUDGET FOR 25, WHEN COUNCIL APPROVED THAT BUDGET, WE HAD A NUMBER OF TRANSFERS GOING FROM WATER UTILITY, WASTEWATER UTILITY TO THE GENERAL FUND. THERE IS AN EQUITY TRANSFER, WHICH IS BASICALLY IN LIEU OF TAXES. SO HAD THIS BEEN A PRIVATE UTILITY, IT WOULD HAVE PAID US PROPERTY TAXES, FRANCHISE TAX. SO THOSE TYPES OF THINGS WERE RECOUPING FOR THE OWNERS OF THE SYSTEM WHO ARE THE TAXPAYERS. SO THAT'S ONE TYPE OF TRANSFER. THE SECOND TYPE OF TRANSFER WE BROUGHT IN IN 25 WAS TO RECOUP THE CITY'S GENERAL FUND ADMINISTRATIVE SUPPORT COST THAT WAS INCURRED TO SUPPORT THE TWO UTILITIES. A GOOD EXAMPLE WOULD BE FINANCE CITY MANAGER'S OFFICE, CITY ATTORNEY'S OFFICE, IT, HR. THESE ARE ALL SUPPORT FUNCTIONS THAT THEY NOT ONLY SUPPORT THE GENERAL FUND OPERATIONS, BUT THEY ALSO SUPPORT UTILITY OPERATIONS OF ENTERPRISE OPERATIONS. OKAY, SO DO WE HAVE A POLICY WRITTEN ON THAT? LIKE

[03:55:03]

AT WHAT POINT DO WE KEEP THOSE THINGS IN THE WATER FUND TO KEEP THOSE FUNCTIONS AFFORDABLE? SO WE DISCUSSED THOSE DURING THE BUDGET PROCESS. WE OUTLINED WHAT THOSE TRANSFERS ARE AND WHY. AND THEN IT'S A POLICY DECISION FOR COUNCIL AT THAT POINT. OKAY. AND THEN I SAW THAT THERE WERE SOME AUDIT ADJUSTMENTS THAT WERE REQUIRED. CAN YOU SPEAK TO THOSE? LIKE WHAT ACCOUNTS WERE IMPACTED, WHAT THOSE ADJUSTMENTS LOOKED LIKE? SO WHEN THE BUDGET IS ADOPTED, WE DO NOT HAVE AUDITED ENDING FUND BALANCES TO BECOME THE BEGINNING FUND BALANCE.

RIGHT. SO WE START WITH BEGINNING FUND BALANCE. WE ESTIMATE OUR PROJECTED REVENUES.

AND THEN WE ESTIMATE OUR OUR EXPENDITURES. AND THEN WE HAVE A FUND BALANCE FOR THAT NEW FISCAL YEAR. SO WHEN COUNCIL IS ADOPTING THE BUDGET AT THAT POINT, WE DO NOT HAVE THE AUDITED FINANCIAL STATEMENTS FOR THE FISCAL YEAR, THE PRIOR FISCAL YEAR. WE'RE STILL IN THE MIDDLE OF THAT BUDGET BECAUSE IF YOU RECALL, WE'LL START THE BUDGET PROCESS SOMEWHERE IN MAY.

BY THE TIME COUNCIL ADOPTS THE BUDGET, WE'RE IN FIRST PART OF SEPTEMBER. THE AUDITORS DON'T SHOW UP UNTIL THE FISCAL YEAR ENDS. THEY WILL SHOW UP HERE AROUND NOVEMBER TIME FRAME. SO THEIR AUDITED RESULTS, LIKE RIGHT NOW WE'RE RECEIVING THE AUDITED FUND BALANCE. WE WILL GO BACK DURING THE BUDGET PROCESS AND ADJUST WHAT THE ACTUAL FUND BALANCE WAS. SO IT WILL BE AUDITED BEGINNING FUND BALANCE FOR NEXT YEAR. OKAY. THANK YOU. AND I HAVE ONE MORE QUESTION. I NOTED THAT THERE WERE SOME RECOMMENDATIONS MADE ON MANAGING OUR GRANTS IN TERMS OF THE ACCOUNTING, THAT WE HAVE DIFFERENT PEOPLE MANAGING HOW THOSE GRANTS ARE, ARE HANDLED, LIKE HOW THEY'RE RECONCILED, ALL OF THAT STUFF. SO DO WE HAVE CHANGES PLANNED FOR THAT? SORRY. SO RIGHT NOW WE HAVE MULTIPLE DEPARTMENTS APPLYING FOR AND RECEIVING GRANTS, AND THEY RANGE FROM THOUSAND DOLLARS, $3,000 GRANTS TO SEVERAL HUNDRED THOUSAND DOLLARS GRANTS. AND YOU HAVE POLICE, PARKS, PUBLIC WORKS. THEY ALL RECEIVE DIFFERENT TYPES OF GRANTS DURING THE FISCAL YEAR. WHAT THEY'RE SUGGESTING IS, AS THE CITY IS GROWING OR RECOMMENDING AS THE CITY IS GROWING, AND WE ARE APPLYING FOR MORE GRANTS THAT INSTEAD OF EACH DEPARTMENT MANAGING THEIR OWN GRANT THAT IT WOULD BE MORE COST EFFECTIVE AND EFFECTIVE MANAGEMENT OF THOSE GRANTS, THAT THEY'RE ALL HANDLED THE SAME WAY. IF THEY WERE CENTRALIZED, WHETHER IT'S IN FINANCE OR CITY ATTORNEY'S OFFICE OR CITY SECRETARY'S OFFICE, WHEREVER IT IS THAT THE CITY MANAGER DECIDES THAT IT OUGHT TO BE CENTRALIZED. SO THEY'RE THEY'RE FOLLOWED THE SAME POLICIES AND PROCEDURES FOR ALL TYPES OF GRANTS. OKAY.

THANK YOU VERY MUCH. YOU'RE WELCOME. ALL RIGHT. ANYBODY ELSE? COUNCIL MEMBER ZAPATA. SO I GUESS I JUST HAVE A COUPLE OF QUESTIONS. I THINK THE FIRST BEING. WHEN WE ARE LOOKING AT OUR UNASSIGNED GENERAL FUND BALANCE, IT'S AROUND 17 MILLION. AND OUR COMBINED GOVERNMENTAL FUND BALANCE IS AROUND 118 MILLION. CAN YOU EXPLAIN JUST THE DIFFERENCE BETWEEN THOSE NUMBERS AND WHY EACH MATTER AND KIND OF LIKE WHAT THE STORY EACH TELL? SURE. I CAN. THE GENERAL FUND FUND BALANCE, LIKE YOU SAID, IS 17 MILLION. IT IS MEANT FOR YOUR ONGOING OPERATIONS. IT'S MEANT FOR YOUR NEXT YEAR'S BUDGET DOLLARS TO BE USED. IT'S ABOUT THREE MONTHS WORTH OF OPERATING EXPENDITURES, WHICH. SO IT'S A HEALTHY FUND BALANCE. WE RECOMMEND ANYWHERE BETWEEN 3 TO 6 MONTHS, AND GASB RECOMMENDS THAT. SO AND THEN YOU'VE GOT.

I'M TRYING TO GET TO THAT PAGE. YOUR DEBT SERVICE FUND THOSE THAT IS RESTRICTED FUND BALANCE.

IT CAN ONLY BE SPENT ON YOUR ON YOUR DEBT SERVICE, YOUR CAPITAL PROJECTS FUND. AGAIN, THAT'S YOUR, YOUR BOND MONEY. AND IT CAN IT'S RESTRICTED. ALSO, IT CAN ONLY BE SPENT ON THE PROJECTS THAT YOU'VE ISSUED YOUR BONDS FOR. YOU'VE GOT I KNOW YOU HAVE HOTEL MOTEL TAX THAT'S VERY RESTRICTED ALSO. I'M TRYING TO GET TO THAT PAGE AND I CAN'T. WE TALKED ABOUT.

AND THEN YOU GOT YOUR GRANTS FUND. THAT'S RIGHT. NOW THAT'S THE ARPA MONEY THAT YOU'VE GOT

[04:00:04]

SITTING IN THERE. AGAIN, THAT'S RESTRICTED FOR THE PROJECTS THAT YOU'VE ASSIGNED TO USE THE ARPA FUNDS FOR DEBT SERVICE WE TALKED ABOUT. AND THEN YOU'VE GOT THE TWO BOND FUNDS, AND THEN YOU'VE GOT SOME SMALLER FUNDS THAT ARE THERE'S COMBINING STATEMENTS WAY IN THE BACK OF THE REPORT THAT COMBINE ALL THOSE SMALLER FUNDS THERE, THE MUNICIPAL COURT SECURITY, THERE'S YOUR HOTEL, THERE'S THE MUNICIPAL TECHNOLOGY, YOU'VE GOT ALL YOUR TOURS BACK THERE.

THOSE ARE ALL RESTRICTED FUNDS, ALL OF YOUR SPECIAL REVENUE FUNDS THERE, ALL RESTRICTED FOR THE PURPOSE OF THAT FUND. OKAY. AND THEN I THINK MY NEXT QUESTION OFF OF THAT WOULD BE THAT 17 MILLION, I BELIEVE THERE'S LIKE A LEGAL LIMIT THAT WE'RE ABLE TO HIT OR, OR THAT WE HAVE TO MAINTAIN OR MAYBE NOT LEGAL, BUT THAT'S WHAT IS RECOMMENDED AS A THREE MONTH.

CORRECT. THREE MONTHS. AND, AND I THINK WE'RE ABOVE THAT IF I DID THE MATH CORRECTLY, IS THAT IS THAT, I DON'T KNOW, IT'S ABOUT 25% FOR THE CALCULATION. SO THE 17 DIVIDED BY THE 68 MILLION THAT YOU HAD, IT'S ABOUT 25%. OKAY. AND THEN I THINK MY MY NEXT QUESTION IS BASED ON JUST YOUR PROFESSIONAL OPINION, WHAT WOULD YOU SAY ABOUT OUR CITY'S ABILITY TO HAVE HEALTHY DEBT, BASICALLY, AND OUR ABILITY TO BE ABLE TO PAY OFF OUR DEBT AND WHAT THAT'S LOOKING LIKE RIGHT NOW? LOOKING? I DON'T HAVE AN OPINION ON THAT. OKAY. LET ME YOU'LL HAVE TO DECIDE HOW MUCH, HOW MUCH OF YOUR M AND O VERSUS YOUR INS TAX RATE. YOU WANT TO, YOU WANT TO SHIFT OVER TO THE DEBT SERVICE FUND. OKAY. LET'S SEE. I THINK THOSE ARE ALL THE QUESTIONS I HAVE. OKAY. THANK YOU. ALL RIGHT. I HAVE A FEW QUESTIONS FOR MR. MOHIT. OKAY.

I JUST WANT TO GET MY HEAD WRAPPED AROUND. THESE NUMBERS. SO IT LOOKS LIKE OUR CAPITAL ASSETS INCREASED BY 87 MILLION AND OUR TOTAL LIABILITIES INCREASED BY 60 MILLION, WHICH IS 143%. AND IT SAYS IN ACCOUNTS PAYABLE AND AN INCREASE IN THE NET PENSION LIABILITY. COULD YOU TELL US A LITTLE BIT MORE ABOUT THAT? OH, YOU'RE LOOKING AT THE FINANCIAL STATEMENT. SO OVERALL THE CITY HAS ISSUED MORE DEBT SINCE THE YEAR BEFORE. RIGHT. SO FOR ROAD BONDS WE'VE ISSUED ROAD BONDS. WE HAVE ISSUED CERTIFICATES OF OBLIGATIONS FOR OTHER PROJECTS, FOR WATER, FOR WASTEWATER, FOR DRAINAGE. SO OUR OVERALL DEBT POSITION HAS HAS GONE UP FROM ONE FISCAL YEAR TO THE NEXT. AND YOU WILL SEE THAT INCREASING IN THE NEXT FIVE YEARS, BECAUSE WHEN YOU HAVE A $1.3 BILLION CIP PROGRAM IS DEBT FINANCED. SO WE'RE GOING TO BE ISSUING MORE DEBT AS WE EXPAND OUR TREATMENT PLANT, AS WE BUILD OUR ROADS, AS WE BUILD OUR PARKS, AS WE BUILD OUR SIDEWALKS. SO DEBT WILL BE ISSUED. NOW GOING BACK TO 930, THE LIABILITY POSITION THAT YOU'RE SEEING, WE HAVE NEW ISSUES OF DEBT, OUTSTANDING DEBT. WE ALSO HAVE PENSION LIABILITY. WE ALSO HAVE JUST OUR STANDARD AND CONTRACTUAL LIABILITIES THAT WE'RE OBLIGATED TO PAY. AND THEN A FEW OTHER SMALLER LIABILITIES LIKE OUTSTANDING WAGES OR OUTSTANDING CLAIMS ON CASH. SO HOPEFULLY THAT ANSWERS IT DOES SO, BUT AND WE'RE SCHEDULED TO DO HOW MUCH MORE IN IN BONDING BECAUSE I REMEMBER AT ONE POINT IT WAS 900 MILLION. AND THEN IT WENT UP TO 1.2 BILLION. SO IN THE NEXT FIVE YEARS, WHAT DOES THAT LOOK LIKE WHERE I'M PRESENTLY WORKING ACTUALLY ON THAT PART OF IT TO FORECAST WHAT WE NEED TO SPEND ISSUE DEBT. AS PART OF THE BUDGET PROCESS, WE WILL GO OVER WITH A FINE TOOTH COMB BECAUSE IT IS DEPENDENT ON WHAT THE CITY COUNCIL APPROVES. IN THE FIVE YEAR CIP SPENDING PLAN. SO FOR THE REST OF THIS FISCAL YEAR, WE ARE TRYING TO MINIMIZE WE DON'T ISSUE DEBT IN ADVANCE. WE WILL ISSUE DEBT TO THE EXTENT WE NEED TO REIMBURSE OURSELVES.

[04:05:06]

SO IT LOOKS LIKE IT'S GOING TO BE BETWEEN 80 TO $100 MILLION IN NEW DEBT THIS FISCAL YEAR, THIS FISCAL YEAR. OKAY. OKAY. SO TO GET A GRASP ON HOW MUCH THE CITY HAS FOR FUTURE OBLIGATIONS, IT LOOKS LIKE 682.6 MILLION IS OUR NET POSITION. RIGHT? THAT'S HOW MUCH WE HAVE IF IF IT WAS ON PAPER. BUT OUT OF THAT 496.1 MILLION OR 72% ARE ASSETS, MEANING LAND, BUILDINGS, MACHINERY AND EQUIPMENT, IT'S HARD TO PAY YOUR BILLS LIKE THAT. AND ON TOP OF THAT, WE HAVE 109 MILLION, WHICH IS ALREADY RESTRICTED. SO WE IT'S ALREADY ACCOUNTED FOR. SO THAT LEAVES US WITH 77.3 MILLION FOR FUTURE OBLIGATIONS. IS THAT CORRECT? I DON'T WANT TO SAY YES OR NO BECAUSE I'M NOT LOOKING AT THOSE NUMBERS. SO IT'S IN THE BOOK. AND WHAT IT SAYS IS. ANOTHER SAY. SO IT SAYS 682. AND THEN CAN YOU GIVE ME THE PAGE NUMBER. YEAH. YOU BET. PAGE EIGHT EIGHT. AND I JUST SAY THAT BECAUSE AS YOU LOOK AT AS I LOOK AT THIS AND I SEE LIKE MAYBE PEOPLE DIDN'T UNDERSTAND OUT OF OUR $682 MILLION, 500,000, ALMOST OR 500 MILLION IS JUST LAND AND BUILDINGS AND EQUIPMENT. TO ME, THAT'S IMPORTANT TO KNOW WHERE WE STAND FINANCIALLY. SO THEN WHEN WE LOOK AT, OKAY, NOW THAT WE HAVE CAPITAL IMPROVEMENTS, THAT WE HAVE PLANNED RESTRICTED FUNDS, NOW WE HAVE 77.3 MILLION.

SO WE JUST GOT I JUST WANT TO BE REAL CAREFUL WITH HOW WHEN WE MOVE FORWARD, HOW WE'RE SPENDING, BECAUSE IT LOOKS LIKE IF WE HAVE 77.3 MILLION AND WE'LL GET SOME TAXES AS WELL.

BUT IF WE NEED WHAT DID YOU SAY 800 MILLION FOR NEXT YEAR? HOW MUCH, HOW MUCH DID YOU SAY WAS FOR NEXT YEAR THAT WE NEEDED OKAY FOR DEBT SIPS, SIPS. IT RANGES BETWEEN 450 TO 500 MILLION A YEAR. 80 TO $100 MILLION IN NEW DEBT ISSUE. OKAY. YES. SO WHAT I WHAT I'M JUST TRYING TO SAY IS LIKE, THESE ARE REAL NUMBERS THAT ARE GOING TO AFFECT OUR TAX RATE AT SOME POINT. SO I JUST WANT TO MAKE SURE AS WE SIT UP HERE THAT WE UNDERSTAND THIS IS PRETTY STRAIGHTFORWARD. YOU HAVE ROBUST CIP PROGRAM. WE HAVE TO PAY FOR IT. WE DON'T HAVE $1.3 BILLION IN A SAVINGS ACCOUNT TO COVER IT. WE'LL HAVE TO ISSUE DEBT. THAT DEBT HAS TO BE REPAID THROUGH PROPERTY TAX, WATERY RATES, WASTEWATER RATES AND STORM DRAINAGE FEES. SO IT REALLY HAS TO COME TO A POLICY DECISION. WHAT DO YOU WANT TO BUILD? WHEN DO YOU WANT TO BUILD AND HOW MUCH DO YOU WANT TO AFFORD. THAT'S THE BUDGET PROCESS WE'RE GOING TO GO THROUGH. WELL, THE MOST IMPORTANT PART OF IT FOR ME IS GOING TO BE TO SEE HOW IT AFFECTS THE RESIDENTS, TO SEE HOW IT AFFECTS OUR TAX RATES AND OUR WE AGAIN, WE DON'T WANT TO TAX PEOPLE OUT OF KYLE SO THAT WHEN MOVING FORWARD, THAT IS GOING TO BE SOME INFORMATION I'M SURE YOU'LL PROVIDE, BUT THAT I REALLY WOULD REALLY LIKE TO SEE. THAT'S GOING TO BE PART OF THE BUDGET REVIEW PROCESS. ALL RIGHT. ANY OTHER QUESTIONS? COMMENTS ON THAT. MAYOR, IF YOU NOTICE WHEN I SENT YOU AND COURTNEY GOES TO THAT EMAIL THE OTHER DAY ABOUT STRATEGICALLY PLANNING FOR REDUCING DEBT, YOU KNOW, THAT'S SOMETHING THAT WE AS A COUNCIL CAN LOOK AT DEVELOPING OUR POLICY AS LIKE A 3 TO 5 YEAR PLAN ON HOW WE CAN UTILIZE THAT TO WHERE WE CAN GO INTO THE DEBT BALANCE. IF IT MEANS THERE ARE CERTAIN PRODUCTS OR CERTAIN ITEMS ON CIP THAT WE CAN CUT BACK ON TO WHERE WE CAN REDUCE WHAT WE'RE SAYING. I THINK THE OVERALL ISSUE WE'RE LOOKING AT FROM OUR POINT OF VIEW IS THE TAX RATE FOR OUR RESIDENTS. YOU KNOW, IT SEEMS LIKE SOME OF US ARE FEELING LIKE THEY'RE BEING PRICED OUT OR ALONG WITH WATER RATES AND EVERYTHING ELSE. SO IT'S IT'S GETTING NOT ONLY ABOUT SUSTAINABILITY BUT AFFORDABILITY FOR US. AND SO THAT'S KIND OF WHERE WE'RE LOOKING AT. AND I THINK IT WOULD HAVE TO COME DOWN, LIKE YOU SAID, A POLICY TO SEE HOW WE CAN WORK ON NOT ONLY KEEPING AFLOAT, BUT START WORKING ON PAYING OFF OUR DEBT, WE PAY OFF OUR DEBT A LITTLE BIT MORE AND STICKING WITH A PLAN, YOU KNOW, LIKE YOUR MORTGAGE OR PAYING EXTRA ON YOUR CAR. NOTE THAT TYPE OF THING. I THINK THAT'S KIND OF WHERE I'M LOOKING AT DOING TO WHERE WE CAN START HELPING OUR RESIDENTS LOOK AT THAT, BECAUSE I KNOW THERE'S GOING TO BE NEEDS. WE, I

[04:10:03]

UNDERSTAND THERE'S THERE'S NEEDS IN THE CITY, BUT AT THE SAME TIME, WE CAN TRY TO FIGURE OUT A PLAN WHERE IF WE CAN START REDUCING SOME OF OUR DEBT TO WHERE WE CAN, WE CAN HAVE A LITTLE BIT GIVE OUR RESIDENTS A LITTLE BREATHING ROOM. THIS IS WHAT GROWTH LOOKS LIKE. WHAT PERCENTAGE OF OUR DEBT IS VOTER APPROVED? THAT'S ABOUT THIS IS DON'T QUOTE ME ON IT. IT'S ABOUT 6040 SPLIT. SO 60% VOTER APPROVED, CORRECT? NO, THE OTHER WAY. OKAY. BUT 40% OF OUR DEBT BEING VOTER APPROVED IS STILL A LARGE CHUNK. AND SO I JUST WANT EVERYONE TO KNOW THAT THESE ARE THINGS THAT VOTERS HAVE ASKED US TO DO AND HAVE ASKED US TO CARRY OUT, BECAUSE THESE ARE THE ROAD IMPROVEMENTS. THIS IS THE WATER INFRASTRUCTURE, WASTEWATER INFRASTRUCTURE, SIDEWALK INFRASTRUCTURE, THIS IS ALL OF THAT. SO WHEN WE SIT HERE AND WE TALK ABOUT. CUTTING OUR CIP PROGRAM, THAT IS IT IS VERY DIFFICULT AND KIND OF PERPLEXING FOR ME TO SIT HERE AND LISTEN TO THE SAME INDIVIDUALS ALWAYS DISCUSS THE IMPORTANCE OF MAKING NECESSARY IMPROVEMENTS TO OUR ROADS, TO OUR SIDEWALKS, TO OUR INFRASTRUCTURE, AND ALL OF THAT COSTS MONEY. ALL OF THAT COSTS A SIGNIFICANT AMOUNT OF MONEY.

AND SO WHEN WE TALK ABOUT POSSIBLY CUTTING OUR CIP PROGRAM, I JUST WANT THE RESIDENTS TO UNDERSTAND THAT THAT MEANS THAT THERE MAY BE SOME INDIVIDUALS ON COUNCIL. I HAVE NO CLUE, BUT THERE MAY BE SOME INDIVIDUALS ON COUNCIL THAT IN ORDER TO KEEP YOUR TAX RATE LOW, ARE GOING TO FORGO THE IMPROVEMENTS THAT YOU WERE ASKING FOR. AND I JUST WANT TO STRESS THAT 40% OF OUR DEBT OBLIGATION IS VOTER APPROVED. THIS IS WHAT THE PEOPLE ASKED FOR. THIS IS WHAT THEY WANTED BECAUSE IT'S NECESSARY FOR INFRASTRUCTURE. CIP ISN'T, YOU KNOW, FRILLY TYPE OF STUFF. IT'S JUST THE BASIC NECESSITIES OF WHAT A CITY NEEDS TO FUNCTION. AND SO I JUST WANT US TO BE VERY CAREFUL WITH WHAT WE ARE SAYING, BECAUSE WE CANNOT CONTINUE PROMISING THE RESIDENTS THAT WE'RE GOING TO FOCUS ON INFRASTRUCTURE AND AT THE SAME TIME, CARRY OUT CONVERSATIONS ON THIS DAIS THAT TALK ABOUT CUTTING THE VERY PROGRAM THAT FUNDS THAT. ALL RIGHT. FOLLOWING UP, CAN YOU TELL ME HOW MUCH OF THE THE DEBT IS COUNCIL GEO BONDS OR NO C O BONDS THAT WERE APPROVED? IF NOT, THAT'S OKAY. I DON'T HAVE IT IN FRONT OF ME, BUT I CAN TELL YOU THAT AS OF TODAY, WE OWE ABOUT $385 MILLION IN 385 IN G OR C O. OKAY. SO 385 MILLION IS WHAT WE OWE 385, 300,000, 40.5% OF THAT IS PROPERTY TAX BASED, MEANING THEY'LL HAVE TO BE REPAID WITH PROPERTY TAX, 10.6% OR 41 MILLION IS TO BE REPAID WITH WATER WATER RATES. 31.8%, OR 122.4 MILLION, IS FOR ALLIANCE REGIONAL DEBT THAT THEY HAVE ISSUED ON OUR BEHALF. THAT WILL ALSO HAVE TO BE REPAID THROUGH WATER RATES. ALMOST 40 MILLION OR 10% IS GOING TO BE REPAID THROUGH WASTEWATER RATES. AND THEN ABOUT 9 MILLION OR 2.3% REPAID THROUGH VERSE NUMBER ONE, 17.4 MILLION OR 4.5% TO BE REPAID THROUGH VERSE NUMBER TWO. TURNS ONE AND TWO. YEAH. SO THAT SHOULD ADD UP TO 385 MILLION. OKAY. NONE OF THOSE ARE VOTED ON BY THE VOTERS, CORRECT? NOT THE TERSE. NO.

OKAY. AND I DON'T THINK ANYBODY'S I DON'T THINK ANYBODY'S DISCUSSED NOT DOING THE ROAD BOND OR DOING ANY OF THE BONDS, THE 40%. RIGHT. I THINK THAT'S GREAT. I THINK THE PROBLEM IS GOING TO COME INTO PLACE WHEN WE HAVE 100 MILLION MORE, THAT WE'RE GOING TO HAVE TO ADD THAT THAT'S PROBABLY NOT GOING TO GO TO. THE VOTERS PROBABLY JUST HAVE TO DO IT EITHER WAY. IT MAY NOT GO TO THE VOTERS, BUT WE GO THROUGH A A THOROUGH PUBLIC VETTING PROCESS, PUBLIC HEARINGS. SO THE VOTERS DO HAVE THE OPPORTUNITY TO COME BEFORE COUNCIL AND SPEAK THEIR MIND. BUT WATER, WASTEWATER, THOSE ARE TYPICALLY CEOS AND NON

[04:15:08]

VOTED BONDS. RIGHT. OKAY. ALL RIGHT. ANY OTHER QUESTIONS WITH THAT. I'D LIKE TO MAKE A MOTION TO APPROVE AGENDA ITEM NUMBER 515 SECOND SECOND. OKAY. I HAVE GIVE THE OKAY. I HAVE A MOTION BY MYSELF A SECOND BY COUNCIL MEMBER GOSA. ALL IN FAVOR SAY AYE. AYE. ALL OPPOSED? OKAY.

MOTION PASSES SIX ZERO. THANK YOU, THANK YOU. AND WE REALLY DO. WE. YOUR DEPARTMENT IS AMAZING. SO THANK YOU SO MUCH. THANK YOU. THANK YOU FOR STAYING PAST YOUR CURFEW AS WELL. WE REALLY APPRECIATE IT. THANK YOU. ALL RIGHT. WE JUST HAVE TWO MORE GUYS CONSIDER

[18) Consider approval of a resolution of the City of Kyle, Texas determining the costs of certain authorized improvements to be financed within Improvement Area #1 of the Savannah Ranch Public Improvement District; approving a preliminary service plan and assessment plan, including a proposed Improvement Area #1 assessment roll; noticing a public hearing to consider an ordinance levying assessments on property located within Improvement Area #1 of the Savannah Ranch Public Improvement District; directing the filing of the proposed Improvement Area #1 assessment roll with the city secretary to make available for public inspection; directing city staff to publish and mail notice of said public hearing; and resolving other matters incident and related thereto.]

[19) Consider approval of a resolution of the City of Kyle, Texas approving the form and authorizing the distribution of a Preliminary Limited Offering Memorandum for the City of Kyle, Texas Special Assessment Revenue Bonds, Series 2026 (Savannah Ranch Public Improvement District Improvement Area #1 Project) related to the financing of approximately $19,719,049 in authorized improvements for the District; and resolving other matters incident and related thereto.]

APPROVAL OF A RESOLUTION OF THE CITY OF KYLE, TEXAS, DETERMINING THE COST OF CERTAIN AUTHORIZED IMPROVEMENTS TO BE FINANCED WITHIN IMPROVEMENT AREA. NUMBER ONE OF THE SAVANNAH RANCH PUBLIC IMPROVEMENT DISTRICT, APPROVING A PRELIMINARY SERVICE PLAN AND ASSESSMENT PLAN, INCLUDING A PROPOSED IMPROVEMENT AREA. NUMBER ONE, ASSESSMENT ROLL A NOTICING A PUBLIC HEARING TO CONSIDER AN ORDINANCE LEVYING ASSESSMENTS ON PROPERTY LOCATED WITHIN IMPROVEMENT AREA NUMBER ONE OF THE SAVANNAH RANCH PUBLIC IMPROVEMENT DISTRICT, DIRECTING THE FILING OF THE PROPOSED IMPROVEMENT AREA ONE ASSESSMENT ROLE WITH THE CITY SECRETARY TO MAKE AVAILABLE FOR PUBLIC INSPECTION. DIRECTING CITY STAFF TO PUBLISH AND MAIL NOTICE OF SAID PUBLIC HEARING AND RESOLVING OTHER MATTERS, INCIDENT AND RELATED THERETO.

ITEM PRESENTER STEPHANIE LEVY. GOOD EVENING, MAYOR, CITY COUNCIL MEMBERS. IF I CAN JUST ASK, CAN WE OPEN UP ITEM SEVEN, 18 AND 19 AT THE SAME TIME? YOU GOT IT. ALL RIGHT. AGENDA.

WE'RE GOING TO ALSO BRING UP FORWARD AGENDA ITEM 19. CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF KYLE, TEXAS APPROVING THE FORM AND AUTHORIZATION AUTHORIZING THE DISTRIBUTION OF PRELIMINARY LIMITED OFFERING MEMORANDUM FOR THE CITY OF KYLE, TEXAS SPECIAL ASSESSMENT REVENUE BONDS SERIES 2026, SAVANNAH RANCH PUBLIC IMPROVEMENT DISTRICT AREA NUMBER ONE PROJECT RELATED TO THE FINANCING OF APPROXIMATELY $19,700,049 AND AUTHORIZED IMPROVEMENTS FOR THE DISTRICT AND RESOLVING OTHER MATTERS INCIDENT AND RELATED THERETO.

THANK YOU, THANK YOU. SO JUST A REAL QUICK OVERVIEW FOR THESE TWO ACTION ITEMS. AND THEN I'LL WALK THROUGH THE PRESENTATION WITH YOU ALL FOR AGENDA ITEM 18. THAT'S CONSIDERATION APPROVAL OF A PRELIMINARY SERVICE AND ASSESSMENT PLAN, WHICH WILL BE THE MECHANISM THROUGH WHICH THE CITY WILL LEVY ASSESSMENTS WITHIN THE SAVANNAH RANCH PUBLIC IMPROVEMENT DISTRICT WILL HOLD A PUBLIC HEARING BEFORE THOSE ASSESSMENTS ARE LEVIED. AND SO WE'LL ALSO BE PUBLISHING NOTICE OF THAT PUBLIC HEARING. WE'RE SCHEDULED TO HAVE THAT PUBLIC HEARING APRIL THE 7TH. SO THAT'S THE FIRST ACTION ITEM. THE SECOND ACTION ITEM IS APPROVAL OF THE PRELIMINARY LIMITED OFFERING MEMORANDUM. THOSE SPECIAL ASSESSMENTS, WHEN LEVIED, WILL BE USED AS A REPAYMENT SOURCE FOR SPECIAL ASSESSMENT REVENUE BONDS. THE PRELIMINARY LIMITED OFFER OFFERING MEMORANDUM IS THE DOCUMENT THAT THE BOND UNDERWRITER USES TO MARKET THOSE BONDS TO BOND INVESTORS. SO THAT'S WHY I ASKED FOR THE TWO ITEMS TO BE CONSIDERED TOGETHER. SO WALKING THROUGH THE SAVANNAH RANCH PUBLIC IMPROVEMENT DISTRICT, JUST SOME HISTORICAL ACTIONS BY COUNCIL. SO MARCH IN 2022, COUNCIL PASSED A RESOLUTION THAT CREATED THE PYD. IN APRIL OF 2022, COUNCIL ALSO ADOPTED AN ORDINANCE THAT CREATED TOURIST NUMBER THREE. TOURIST NUMBER THREE IS GOING TO BE USED IN CONJUNCTION WITH THE PYD SPECIAL ASSESSMENTS TO HELP PAY FOR THE PUBLIC INFRASTRUCTURE PROJECTS WHICH ARE BEING CONSTRUCTED. ALSO IN APRIL OF 2022, COUNCIL PASSED THE DEVELOPMENT AGREEMENT FOR THE PUBLIC IMPROVEMENT DISTRICT. JANUARY OF 24, COUNCIL PASSED AND APPROVED A REIMBURSEMENT AGREEMENT RELATED TO THE PUBLIC IMPROVEMENTS THAT ARE GOING TO COME ONLINE WITH THIS IMPROVEMENT AREA NUMBER ONE. AND AGAIN, THE PIT ENTERS. NUMBER THREE ARE BEING USED TO FINANCE CONSTRUCTION TO PUBLIC IMPROVEMENTS WITHIN THE PIT AND TOLL SOUTHWEST. TOLL BROTHERS IS THE DEVELOPER FOR THIS DISTRICT. THIS IS A MAP OF IMPROVEMENT AREA NUMBER ONE, THE AREA THAT'S CURRENTLY BEING DEVELOPED. AND FOR WHERE WE ARE TODAY. THE DEVELOPERS COMPLETED THE IMPROVEMENT AREA NUMBER ONE PROJECTS AND ARE READY FOR BOND ISSUANCE. THE RESOLUTION YOU HAVE BEFORE YOU TONIGHT IS A COST DETERMINED COST DETERMINATION RESOLUTION, WHERE WE SET FORTH THE COSTS OF THE IMPROVEMENTS. THERE'S ABOUT $19 MILLION OF PUBLIC IMPROVEMENTS THAT HAVE BEEN CONSTRUCTED WITHIN THE DISTRICT BASED ON BONDING CAPACITY. IT'S

[04:20:07]

ANTICIPATED THAT BONDS WILL BE ISSUED IN ABOUT $12.4 MILLION TO BE ABLE TO PAY COSTS ASSOCIATED WITH THE BONDS, AND ALSO PROVIDE DEVELOPER REIMBURSEMENTS. SO THERE'S ABOUT A $7 MILLION DEVELOPER CONTRIBUTION TO THE PUBLIC IMPROVEMENTS WITHIN THE DISTRICT. IF ACTION IS ADOPTED TONIGHT, THEN WE'LL GO AHEAD AND PUBLISH NOTICE FOR APRIL 7TH TO HOLD THE PUBLIC HEARING ON THE SPECIAL ASSESSMENTS. AFTER THE PUBLIC HEARINGS HELD, WE'LL ASK COUNCIL TO LEVY THE ASSESSMENTS. AND AT THE SAME MEETING, WE'LL HAVE AN ACTION ITEM FOR THE BOND ISSUANCE. SO I THINK THE THE RECOMMENDATION THAT WE WOULD HAVE FOR COUNCIL TONIGHT IS TO APPROVE EACH RESOLUTION. OF COURSE, COUNCIL HAS THE OPTION TO EITHER APPROVE THE RESOLUTIONS OR DENY THE RESOLUTIONS. WE'VE NOT PROVIDED AN OPTION FOR ANY MODIFICATIONS BECAUSE THE BONDS ARE BEING SOLD AT YARD SALE. IF THEIR MODIFICATIONS ARE, PREFERENCE WOULD BE TO TABLE AND COME BACK. ALL RIGHT. ANY QUESTIONS? OKAY. I HAVE A QUESTION. THIS AREA HAS A DEVELOPMENT AGREEMENT. IS THAT CORRECT? IT DOES. OKAY. SO I JUST WANT TO MAKE SURE THAT THE DEVELOPER INCLUDED ALL THE COSTS FOR ALL PUBLIC IMPROVEMENTS THEY AGREED TO CONSTRUCT UNDER THAT D A THAT THEY HAVE WITH US. SO THE DEVELOP THE DEVELOPMENT ITSELF IS BEING CONSTRUCTED IN DIFFERENT PHASES. AND SO THE COST THAT WE'RE TALKING ABOUT TONIGHT ARE THE COSTS ASSOCIATED WITH PHASE ONE, WHICH WE'RE CALLING IMPROVEMENT AREA NUMBER ONE OF THE DISTRICT. AT A FUTURE DATE, WE'LL COME BACK FOR IMPROVEMENT AREA NUMBER TWO AFTER THOSE PUBLIC IMPROVEMENTS HAVE BEEN CONSTRUCTED. AND AGAIN, THIS DEVELOPER IS DOING THE THE, THE BOND ISSUANCE ON A REIMBURSEMENT BASIS. AND SO ALL OF THOSE PUBLIC IMPROVEMENTS HAVE BEEN CONSTRUCTED. I'D HAVE TO DEFER TO SOMEONE ON CITY STAFF. I DON'T KNOW IF IT'S PLANNING OR WHOMEVER ACCEPTS THE PUBLIC INFRASTRUCTURE OR APPROVES THE CONSTRUCTION PLANS. OKAY. SO MY QUESTION, I GUESS, IS TO YOU GUYS, I JUST WANT TO MAKE SURE THAT ALL THE COSTS THAT THE DEVELOPMENT AGREEMENT IS BEING FOLLOWED, AND AS LONG AS THAT IS, THEN IT'S IMPORTANT WE BELIEVE THE DEVELOPERS IN COMPLIANCE WITH THAT AND WE'D RECOMMEND IT TO YOU. OKAY, SO ON RECORD, IT'S ALL ALL GOOD.

ALL RIGHT. ANY OTHER QUESTIONS? COUNCILMEMBER GOZA, WHAT DO WE ESTIMATE THAT THE COST TO PAY THIS PIT OFF PER PROPERTY IS GOING TO BE? SO THE ASSESSMENT PER LOT IS BASED ON LOT SIZE.

FOR THE FIRST LOT SIZE, IT'S ABOUT A $93,000 ASSESSMENT. FOR THE SECOND LOT SIZE, IT'S JUST OVER $122,000. IF YOU BREAK THAT DOWN ON AN ANNUAL BASIS FOR THE SMALLER LOT SIZE, IT'S JUST OVER $7,000 A YEAR. FOR THE LARGER LOT SIZE, IT'S A LITTLE BIT OVER $9,000 A YEAR.

WOW. OKAY. THANK YOU. THAT'S AN ADDITION TO THEIR THEIR HAYS COUNTY TAXES. THAT'S A IN ADDITION TO THEIR AD VALOREM TAXES. SO SPECIAL ASSESSMENT ON THE PROPERTY, I THINK TOLL BROTHERS IS IN CITY. HOLY SMOKES. YOU LOOK AT THAT. IT'S THIS EQUATES TO AN EFFECTIVE TAX RATE WITH THE EXISTING PROPERTY TAXES PLUS THE PIT ASSESSMENT. THEY LOOK AT AN EFFECTIVE TAX RATE AND TRY TO COMPARE THAT TO OTHER DEVELOPMENTS TO TRY TO MAINTAIN MARKETABILITY FOR THE PRODUCTS THAT ARE THERE. PEOPLE LOOK AT THE OVERALL EFFECTIVE TAX RATE FOR COMING INTO THE DISTRICT, BUT THAT'S HOW THE FEDS DO THE RATES. IT'S ESSENTIALLY JUST AN EFFECTIVE TAX RATE CALCULATION. YEAH. SO THE EFFECTIVE TAX RATE, LIKE BRIAN WAS SAYING FOR THE PYD ON A GROSS BASIS IS ABOUT $0.75 FOR WHAT WOULD BE AN EFFECTIVE TAX RATE. THERE IS THE WE DO HAVE OVERLAPPING WITH TOURS NUMBER THREE. SO TOURS NUMBER THREE IS USED TO HELP OFFSET THOSE SPECIAL ASSESSMENTS. AND SO THE I GUESS THE NET PED TAX RATE EQUIVALENT GOES DOWN FROM $0.75 TO $0.53. SO I'M THE LAWYER, NOT THE MATHEMATICIAN, BUT IT'S ABOUT A THIRD OF THE COST. AND SO IF THE TOURIST REVENUES ARE AVAILABLE IN THE WAY THAT THEY'RE FORECASTED TO BECOME AVAILABLE, THAT $9,000. I'VE ALREADY FORGOT THE NUMBERS I GAVE YOU BEFORE, BUT THE TWO NUMBERS THAT I GAVE YOU BEFORE FOR ANNUAL INSTALLMENTS, THOSE

[04:25:04]

WILL BE BOUGHT DOWN BY ONE THIRD OF THE AMOUNT, BECAUSE TOURIST REVENUES WILL BE USED TO HELP OFFSET THOSE COSTS. BUT THAT WON'T BE FOR A COUPLE YEARS, RIGHT? LIKE YOU'RE NOT GOING TO JUST AUTOMATICALLY HAVE MONEY IN YOUR TOURIST FUND WHEN YOU WHEN THEY FIRST BUILD.

SO THE WAY THE TOURS OFFSETS WORK WITH THE PIT BONDS IS THAT IT'S DONE ON A, A ONE YEAR DELAY BASIS. SO YOUR TOURIST REVENUES ARE COLLECTED IN ONE CALENDAR YEAR, AND THEN THEY'RE APPLIED TO HELP OFFSET THE PIT ASSESSMENT AND THE NEXT YEAR, SO THAT YOU ALWAYS ENSURE THAT YOU HAVE MONEY AVAILABLE TO REPAY THE BONDS. SO AS SOON AS THERE ARE HOMES ON THE GROUND, THEN YOU'LL SEE THAT APPRECIATED VALUE INTEREST REVENUES WOULD BECOME AVAILABLE.

OKAY, SO WHAT IS WHAT IS PHASE ONE? WHAT ARE WE, WHAT ARE WE, WHAT ARE WE PAYING FOR RIGHT NOW? THIS 12.4 MILLION? WHAT IS IT? WHAT ARE THEY GOING TO BORROW FOR? SO IT'S PRIMARILY WATER, SEWER, ROADS AND OTHER INFRASTRUCTURE WITHIN THE DEVELOPMENT. SO IT'S BOTH WHAT THEY CALL MAJOR IMPROVEMENTS WITHIN THE DISTRICT AND THEN IMPROVEMENT AREA. ONE SPECIFIC IMPROVEMENTS. AND SO THE MAJOR IMPROVEMENTS INCLUDE OFFSITE OFF SITE WATER LINES TO SUPPORT THE DEVELOPMENT. THOSE COSTS ARE ALLOCATED BETWEEN THE TWO IMPROVEMENT AREAS. AND SO WITH THIS BOND ISSUANCE IMPROVEMENT AREA NUMBER ONE WILL PAY THEIR PORTION FOR THE FUTURE BOND ISSUANCE. IMPROVEMENT AREA NUMBER TWO WOULD PAY THEIR PORTION OF THOSE SAME IMPROVEMENTS. THERE'S A LIFT STATION AND FORCED WATER IMPROVEMENTS TO SIX CREEKS BOULEVARD. AND THEN WE HAVE KIND OF THE INTERNAL INFRASTRUCTURE FOR FOR IMPROVEMENT AREA NUMBER ONE ITSELF, THE INTERNAL STREETS, THE INTERNAL WATER LINES AND DRAINAGE IMPROVEMENTS. AND THIS AREA. HOW MUCH EGRESS AND INGRESS DOES IT HAVE? WELL, YOU'RE GOING TO HAVE YOU CAN SEE THE ROADS ON SIX CREEKS BOULEVARD, WHICH WILL BE ON THE SOUTHERN PIECE OF IT. AND ON THE NORTHERN PIECE. THERE WILL BE ANOTHER ROAD UP THERE AS WELL, BUT PRIMARILY OFF OF SIX CREEKS BOULEVARD WILL BE THE ENTRANCE AND EXIT FROM THE PROPERTY FOR AT LEAST THE FIRST PHASE. HOW MANY ACRES IS THIS? THE ENTIRE DISTRICT OR IMPROVEMENT AREA? NUMBER ONE, THE WHAT WE'RE LOOKING AT THE. YEAH. AREA NUMBER ONE. WELL, JUST TELL ME. YEAH, TELL ME THE WHOLE THING. JUST BECAUSE THIS LOOKS LIKE THE AREA NUMBER ONE IS IN BLUE, BUT THIS WHOLE THING IS THE THE DEVELOPMENT, RIGHT? NO, NOT THE WHOLE. WELL, I'M NOT GOING TO BE ABLE TO BLOW UP THE MAP. SO THE BLUE AREA IS IMPROVEMENT AREA NUMBER ONE. I THINK THE WHITE AREA, THE WHITE AREA, WHICH WOULD BE TO MY LEFT WOULD BE THE REMAINDER AREA. THE OTHER AREAS THAT YOU SEE PLOTTED ARE OTHER DEVELOPMENTS IN THE CITY THAT HAVE ALREADY DEVELOPED. IT'S JUST THE AREA TO THE NORTH OF THAT BLUE SECTION. THE OTHER AREAS THAT ARE BLANK ARE NOT PART OF THIS DEVELOPMENT THAT WE'RE TALKING ABOUT, JUST THE TOLL BROTHERS DEVELOPMENT THAT WE'RE TALKING ABOUT, RIGHT? YEAH. OKAY. IT LOOKS LIKE. SO INSTEAD OF LEFT, IT'S UP. OKAY. OKAY. SO IN THAT AREA, IT JUST HAS ONE WAY IN AND ONE WAY OUT.

LIKE I'M TRYING TO, I CAN'T SEE IT EITHER, BUT WAS IT THE COMMERCIAL SITES IN THE FRONT? MAYOR. IT LOOKS LIKE THE TOTAL SAVANNAH RANCH AREA IS 200 ACRES AND AN IMPROVEMENT AREA ONE IS ABOUT 93. AND THEN THE REMAINDER AREA IS 107. SO WITHIN ALL THOSE HOW MANY EGRESS AND INGRESS DO THEY HAVE TO GET INTO THAT THAT TOTAL DEVELOPMENT? TWO. THE ONE FROM BOULEVARD NORTH BOULEVARD SOUTH. NO, I THOUGHT IT WAS MORE THAN THAT. THERE'S ONE WAY THIS WILL BE TWO BECAUSE YOU ALSO HAD THAT 110 COMING. I WILL BE ON I'LL BE ON THE WEST SIDE. YOU CAN SEE THAT SHOWN A LITTLE BIT IN THAT PARTICULAR AREA. BUT IT'S PRIMARILY SIX DEGREES NORTH AND THE SIXTH STREETS BOULEVARD THAT'S THAT'S SHOWN. THOSE ARE THE TWO ENTRY POINTS AND EXIT POINTS. AND SIX BOULEVARD IS GOING TO BE A FOUR LANE COLLECTOR ROAD. SO MEANT TO HANDLE CURRENT AND FUTURE DEVELOPMENT. AND THAT'S RIGHT OFF. 150 HOW MANY HOMES ARE COMING. 322 WHERE DOES THE COMMERCIAL SITES. NO COMMERCIAL. THOSE ARE 322 TOTAL. YES. OKAY.

[04:30:02]

THERE WAS THE DEA AGREEMENT ALSO INCLUDED COMMERCIAL SITES. THE COMMERCIAL IS JUST THIS IS JUST GOING TO BE COMMERCIAL JUST TO THE WEST. THEY'RE GOING TO BE NEXT TO EACH OTHER. BUT RIVER RANCH. YEAH. SO THEY'RE JUST GOING TO BE HOMES. TO THE WEST OF IT WAS THE COMMERCIAL TRACT. AND THAT'S WITH THE BLANCO RIVER RANCH DEVELOPMENT 300. WHAT IS IT? CAN I ASK YOU ABOUT THE AVERAGE SALE OF YOUR HOME IS GOING TO BE. OH, YOU MAY NEED TO GO UP TO THE MIC.

YEAH. COLIN IS THE DIRECTOR OF LAND DEVELOPMENT WITH TOLL BROTHERS. THE SMALLER PRODUCT IS GOING TO BE, I BELIEVE, 800 STARTING. AND THEN THE LARGER PRODUCT IS GOING TO BE STARTING IN THE MID NINES. WE EXPECT WITH, YOU KNOW, A LOT PREMIUMS AND DESIGN STUDIO SPENDING, THINGS LIKE THAT. IT'LL BE PRICES MUCH MORE NORTH OF THAT. OKAY. 300 MORE HOMES. IT WAS ONLY SUPPOSED TO BE 130, I BELIEVE PHASE ONE IS I THINK 126 HOMES. THERE'S THREE PHASES TOTAL. 300 ADDITIONAL HOMES IN THAT AREA. AND ONLY DO YOU HAVE A NORTH AND SOUTH ENTRANCE ONLY.

AND ONE OFF 150. THE OTHER ONE'S WITHIN SIX WEEKS. 320 MORE HOMES. ALL RIGHT. DOES ANYBODY HAVE ANY QUESTIONS? I KIND OF FEEL LIKE NOW IS NOT THE TIME TO PULL THE APPROVAL.

LIKE WE PRETTY MUCH HAVE TO THE WORK. YEAH. WE'RE MOVING FORWARD. LIKE I DON'T WANT THAT TO BE. BUT YEAH, IT'S ABOUT LIKE, IS IT, DO WE WANT TO FUND THE PIT AT THIS POINT? IT'S THE INFRASTRUCTURE ITSELF. YOU KNOW, IT'S, YOU KNOW, IT'S THE GETTING THE WATER IN THE STREETS IN. AND FOR THAT, JUST THAT SECTION, JUST THAT SECTION, JUST THAT SECTION RIGHT THERE.

THAT'S JUST PHASE ONE. WELL, I WOULD JUST OFFER THAT. I UNDERSTAND THERE MAY BE QUESTIONS ABOUT THE DEVELOPMENT. WE'RE HAPPY TO ANSWER ANY OF THOSE THAT WE CAN, BUT THIS HAS ALL BEEN AGREED UPON AND DEVELOPMENT AGREEMENT THE CITY APPROVED. AND THIS IS SIMPLY EXECUTING A PIECE OF THE DEVELOPMENT AGREEMENT THAT WE'VE ALREADY AGREED TO. WHEN WAS THAT DEVELOPMENT AGREEMENT APPROVED? 22 OR 23. OKAY. 2020 2ND APRIL OF 2022. OKAY. ALL RIGHT. WELL, I THINK IT'S JUST THE REALITY THAT WE'RE WE'RE I GUESS THEY'RE FINALLY BUILDING IT AND SEEING IT AND SEEING WHERE WE'RE AT RIGHT NOW AS FAR AS OUR WATER AND EVERYTHING ELSE. WE WOULD ALWAYS ASSUME WE'D BE CAUGHT UP ON A LOT OF OUR INFRASTRUCTURE PRODUCTS, CIP PROJECTS BY NOW. OKAY, I'M GOING TO MAKE A MOTION TO APPROVE AGENDA ITEM 18 AND 19.

SECOND. OKAY. GOT A MOTION BY MYSELF, SECONDED BY COUNCIL MEMBER TOBIAS. ALL IN FAVOR, SAY AYE. AYE. OPPOSED? MOTION PASSES SIX ZERO. THANK YOU, THANK YOU. YOU GUYS HAVE A GOOD NIGHT. THANK YOU FOR STAYING. WE'RE GOING TO MAKE SOME MONEY. FOR THOSE HOUSES. I.

[20) Discussion and possible direction to staff regarding the annual review of the Rules of Council, including but not limited to, potential updates to promote transparency, efficiency, and effective governance.]

22ND. OKAY. I GOT A MOTION BY MYSELF, A SECOND BY COUNCIL MEMBER ZAPATA.

ALL IN FAVOR, SAY AYE. AYE. OP

* This transcript was compiled from uncorrected Closed Captioning.

II) Approval of Minutes

IV) Agenda Order

V) Proclamation

VI) Reports and Presentations

VII) Consent Agenda

IX) Consider and Possible Action

X) City Council Items

Mar 24, 2026 City Council Special Meeting

II) Approval of Minutes

IV) Agenda Order

V) Proclamation

VI) Reports and Presentations

VII) Consent Agenda

IX) Consider and Possible Action

X) City Council Items

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