Oct 15, 2024 City Council

[A. CALL TO ORDER]

[00:00:08]

>> GOOD EVENING, EVERYONE. WELCOME TO THE REGULAR MEETING FOR TUESDAY, OCTOBER 15TH. PLEASE CALL ROLE.

>> COUNCILMAN DELAGARZA. >> PRESENT.

>> COUNCILMAN LOFFGREN. >> HERE.

>> PLEASE RISE AND JOIN ME FOR THE PLEDGES , FOLLOWED BY A

MOMENT OF SILENCE. >> I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG; I PLEDGE ALLEGIANCE TO THEE, TEXAS, ONE STATE UNDER GOD, ONE AND

INDIVISIBLE. >> THANK YOU. PLEASE BE SEATED.

AGAIN, WELCOME, EVERYONE. IT'S GOOD TO SEE YOU. IT IS A FAIRLY

[1. Announcements/Reminders:]

>> I DO HAVE SEVERAL. WE HAVE QUITE A FEW, CONSIDERING THAT THIS IS ONE OF THOSE SITUATIONS WHERE WE HAVE AN EXTRA WEEK BEFORE OUR NEXT COUNCIL MEETING. ON BEHALF OF THE PARKS THE PROMPT, WE WOULD LIKE TO ANNOUNCE THAT WE ARE HOSTING OUR FIRST EVER CITYWIDE HALLOWEEN PARTY. WE ARE REQUESTING YOUR HELP TO MAKE IT A HOWLING GOOD TIME. THE COMMUNITY CENTER WILL BE TRANSFORMED INTO A SPOOKY SETTING WITH A HAUNTED HOUSE IN THE ANNEX AND ACTIVITIES FOR ALL AGES IN THE DOME. WE ARE SEEKING COMMUNITY PARTNERS TO HOST A TRICK-OR-TREAT ROOM IN THE HAUNTED HOUSE FOR THIS FREE EVENT. EXCUSE ME. FOR MORE INFORMATION, YOU CAN ALSO VISIT THE VICTORIATX.GOV/PARKS. REGISTER FOR FREE. ALSO AT VICTORIATX.GOV/PARKS. ON BEHALF OF DISCOVER VICTORIA, WE WOULD LIKE TO REMIND THE PUBLIC THAT WE CONTINUE OUR BICENTENNIAL CELEBRATION. WE INVITE EVERYONE TO STEP BACK IN TIME AND SEE WHAT LIFE WAS REALLY LIKE IN OUR ORIGIN STORY. THIS FREE TWO DAY FINANCIAL GUESS INCLUDES A HISTORICAL REENACTOR FROM THE STATE. INSTRUCTIONS WILL INCLUDE FRONTIER COOKING AND SOME MORE, INCLUDING EVENT BEGINS ON FRIDAY, BUT IT IS RESERVED FOR SCHOOL TOURS ON FRIDAY AND IT WILL BE OPEN AT 10:00 A.M. ON SATURDAY FOR THE GENERAL PUBLIC. FOR DETAILS, YOU CAN VISIT DISCOVERVICTORIAT EXAS.COM. WE DEBUTED A TOWN TALK, OUR PODCAST THAT GIVES RESIDENTS AND INSIDE PERSPECTIVE ON THE CITY OF VICTORIA. IT WILL DEBUTED NEXT TUESDAY. OUR NEWSLETTER FEATURES AN ENGAGING DISCUSSION WITH MYSELF AS THE GUEST, TALKING ABOUT MANY OF THE SAME TOPICS THAT THE MAYOR TALKED ABOUT IN HIS STATE OF THE CITY SPEECH LAST WEEK WHICH INCLUDED THE BUDGET, OUR COMPENSATION CHALLENGES, AND THE CONNECTION BETWEEN HER COMMUNITY GROWTH AND FINANCES. YOU CAN ALSO FIND THE FIRST EPISODE YOU GET A CHANCE TO VISIT THE SITE. OF COURSE, SPEAKING OF THE MAYOR'S STATE OF THE CITY EVENT WHICH WE COHOSTED WITH THE CITY DEPARTMENT OF COMMERCE, YOU CAN CLICK ON THAT MAYOR'S STATEMENT. OR TUNE INTO OUR LOCAL GOVERNMENT CHANNELS 15 OR 150. THE APPLICATION FOR THE 2025 CITIZENS ACADEMY IS NOW UP AND NOVEMBER 31ST. LASTLY, ON BEHALF OF THE ENVIRONMENT ALL SERVICES AND KEEP VICTORIA BEAUTIFUL, WE CONTINUE TO SEE VOLUNTEERS FOR CLEANUP IN THE ORIGINAL TOWN SITE STARTING WITH THE VICTORIA ART LEAK AT 9:00 & VIGILS AND GROUPS WHO WOULD LIKE TO VOLUNTEER ARE ENCOURAGED TO REGISTER IN ADVANCE AT VICTORIATX.GOV. I LIKE. THERE IS ONE MORE, WHICH I SKIPPED THROUGH. I KNOW TIFFANY IS IN THE BACK LOOKING AT ME. I CAN FEEL HER STARE. ON BEHALF OF MUNICIPAL COURT, WE WOULD LIKE TO INVITE OUR RESIDENTS TO CELEBRATE MUNICIPAL COURT WEEK. THE COURT WILL HOST ANOTHER HERE AT CITY

[00:05:05]

THINK THAT'S IT. >> BUSY TIME OF YEAR. LOTS

[a. Friends of the Library Week Proclamation. Duane Crocker, Mayor]

THE THOUGHTS AND IDEAS OF OTHERS FROM AGES PAST TO THE PRESENT AND ENJOY THE OPPORTUNITY TO IMAGINE, DISCOVER, AND CONNECT. BENEFACTORS OF THE FENCE UNDERSTAND THAT -- THE CRITICAL DIFFERENCE OF WELL-FUNDED LIBRARIES THAT ADVOCATES TO MAKE SURE THAT WE HAVE THE RESOURCES IT NEEDS TO PROVIDE A WIDE VARIETY OF SERVICES TO ALL AGES, INCLUDING TO PRINT AND ELECTRONIC MATERIALS, ALONG WITH X OR -- EXPERT ASSISTANCE . FOR OVER 50 YEARS, THE FRIENDS GIFT OF TIME AND THEIR COMMITMENT TO THE VICTORIA PUBLIC LIBRARY SETS AN EXAMPLE FOR ALL IN HOW VOLUNTEERS AND LEADS TO CIVIC ENGAGEMENT. NOW THEREFORE, I, DUANE CROCKER DECLARED IT FRIENDS OF THE LIBRARY IN VICTORIA, TEXAS.

LET'S THANK THEM FOR ALL THEY DO.

>> I WOULD LIKE TO SHARE A LITTLE BIT ABOUT THE FRIENDS.

FOR THOSE OF YOU WHO MAY NOT KNOW, WE ARE A GROUP OF VOLUNTEERS. WE RAISE MONEY TO ENHANCE THE SERVICES THE PUBLIC LIBRARY PROVIDES FOR OUR COMMUNITY. WE HAVE THREE FUNDRAISERS EACH YEAR. THEY INCLUDE THE YOUTH BOOK SALES, MEMBERSHIPS, AND SPONSORSHIPS. WE WANT TO INVITE EVERYBODY TO BECOME A MEMBER OR POSSIBLY A SPONSOR, SO WE SHARED OUR ENVELOPE WITH YOUR EARLIER. OUR PLEDGE OF $24,000 THIS YEAR WAS USED FOR VARIOUS PROGRAMS THROUGHOUT THE YEAR, INCLUDING THE SUMMER READING PROGRAM THAT WAS MENTIONED IN THE GINGERBREAD EVENT. THEY WERE BOTH ENJOYED BY HUNDREDS OF CHILDREN, AND THERE ARE ALSO PROGRAMS THROUGHOUT THE YEAR FOR TWEEN'S, TEENS, AND ADULTS. OUR FRIENDS DONATED $11,500 TO PURCHASE THE NAJEE, CENTER TABLES, AND CHAIRS. IT WAS A MUCH-NEEDED UPDATE TO THE TECHNOLOGY CENTER TO ENHANCE ACCESS TO OUR COMPUTERS THERE. OUR GOAL FOR THE UPCOMING YEAR IS TO INCREASE OUR PLEDGE TO THE LIBRARY TO $26,000. WE WANT TO RAISE OUR MEMBERSHIP BY 15 NEW MEMBERS. WE WELCOME ALL OF YOU TO JOIN. WE WOULD LIKE TO INCREASE OUR SPONSORSHIP BY 15.

THIS WILL HELP US MEET OUR PLEDGE AND PROVIDE AN OPPORTUNITY TO HELP THE LIBRARY TO CELEBRATE THEIR 50 YEARS IN THAT BUILDING WHEN THE TIME COMES. SO THANK YOU ALL FOR HELPING US RECOGNIZE THE WEEK OF THE FRIENDS OF THE LIBRARY.

>> THANK YOU. >> MR. GARZA, DO YOU HAVE ANY

[3. Items from Council:]

OTHER RECOGNITIONS? >> NO SIR.

>> OKAY. I WILL MOVE ON TO ITEMS FROM COUNCIL. DOES ANYONE

HAVE ANYTHING? >> I HAVE ONE VERY QUICKLY. I MENTIONED ON A COUPLE OF DIFFERENT OCCASIONS ABOUT THE APPOINTMENT OF A SUBCOMMITTEE THAT WOULD LOOK AT , AMONG OTHER TOPICS, PRIMARILY COME I GUESS, THE PRIMARY TOPIC BEING EMPLOYEE COMPENSATION, AND BASICALLY STAYING ON TOP OF THAT, REVISIT THAT, MORE ON AN ANNUAL BASIS THAN JUST KIND OF A BUDGET. IT IS SOMETHING THAT HAS BEEN VERY IMPORTANT FOR US OVER THE LAST FEW YEARS AND WILL REMAIN IMPORTANT FOR US, AND SO, WE WANT TO TRY TO GET AHEAD OF THE UPCOMING BUDGET CYCLE AND THROUGH THE YEAR, BE LOOKING AT THOSE ISSUES SO WE ARE READY, WE ARE PREPARED. WE WERE GETTING FEEDBACK.

SOMETIMES, AS YOU KNOW, AS YOU GET TO THE END OF THE BUDGET CYCLE, IT FEELS FRENZIED. ALL OF THIS IS COMING IN AT THE SAME TIME. I WANT THAT TO BE AN ISSUE THAT GETS ATTENTION THROUGHOUT THE YEAR. TONIGHT, I'M GOING TO .3 MEMBERS OF COUNCIL TO SERVE ON THAT SUBCOMMITTEE. MR. DELAGARZA CAN

[00:10:01]

[4. Citizen Communication:]

MR. VIC MORGAN. >> GOOD EVENING, SIR. WELCOME.

>> THANK YOU. GOOD AFTERNOON TO ALL OF YOU. I THINK I'VE NOT BEEN HERE SINCE THE LAST TIME WE APPROVED THE STREET IN FRONT OF THE U HV CAMPUS. IF YOU'VE NOT DRIVEN IT COMING NEED TO GO DRIVE IT. IT IS SPECTACULAR. THAT IS NOT WHAT I'M HERE TO TALK ABOUT TODAY. THEY WILL BE CELEBRATING THEIR 100TH ANNIVERSARY IN MID-JANUARY OF 2025. WE HAVE BEEN AROUND A LONG, LONG TIME. WE HAD A PANCAKE BREAKFAST SINCE THE EARLY 40S, AT LEAST. I THINK THE TICKETS WERE ABOUT A NICKEL APIECE. THEY ARE UP TO FIVE DOLLARS LAST TIME WE POSTED IT.

AS A WAY TO KICK OFF OUR CELEBRATION, WE ARE OFFERING A FREE PANCAKE BREAKFAST TO 1000 PEOPLE THIS COMING SATURDAY.

OCTOBER THE 19TH. IT WILL BE IN THE CAFETERIA AT EAST HIGH SCHOOL. THE TICKETS ARE FREE. THEY ARE AVAILABLE AT THE FOOD BANK. THEY ARE AVAILABLE AT THE PUBLIC LIBRARY. I HAVE SOME IN MY POCKET IF ANYONE WANTS ANY TONIGHT. WE WILL BE SERVING PANCAKES FROM 7:00 UNTIL NOON, AT NO COST TO ANY OF THE CITIZENS IT THANK YOU TO THE CITIZENS OF VICTORIA FOR YOUR SUPPORT. OVER THE LAST 100 YEARS. SO WE WOULD LOVE TO SEE ALL OF YOU THERE. IF YOU DON'T GET A TICKET TONIGHT, YOU MIGHT COME ANYWAY. WE WILL LET YOU IN. DO YOU HAVE ANY QUESTIONS?

>> I DON'T THINK SO. THANK YOU FOR BEING HERE. WE APPRECIATE

THE INFORMATION. >> THANK YOU.

>> I HOPE TO SEE SOME OF YOU AT THE PANCAKE BREAKFAST.

>> THANK YOU FOR ALL YOU DO IN THE COMMUNITY.

>> WE ARE BLESSED WITH GOOD FUNDRAISERS AND THE ABILITY TO GIVE SOMEWHERE IN THE NEIGHBORHOOD OF $40-$50,000 BACK TO THE COMMUNITY IN NONPROFITS. AND OTHER GROUPS THAT NEEDED TO HAVE LOST SEVERAL YEARS. IT'S ALSO ONE OF OUR BIG FUNDRAISERS. WE LOST SHOWS OVER AT THE WELDER CENTER. WE PARTICIPATED WITH THE PROCEEDS IN THAT. WE ARE HAVING TO MAKE UP THE DIFFERENCE NOW. AND WE HAVE A CALENDAR RAFFLE GOING ON NOW. IF YOU'D LIKE TO PURCHASE A CALENDAR. 500 CALENDARS, AND WE'LL HAVE A DRAWING AT EVERY LIONS MEETING FOR A $250 GIFT CARD AND A GUN. THAT'S ONE OF

OUR BIG FUNDRAISERS. THANK YOU. >> THANK YOU. GOOD TO SEE YOU

AGAIN. >> THANK YOU. IT'S GOOD TO BE

HERE. >> THERE YOU GO.

>> ALL RIGHT. THE NEXT CARD I HAVE IS MR. ERNIE BIRD. GOOD

EVENING, MR. BURKE. WELCOME. >> JUST A CONCERNED CITIZEN. I PROBABLY WOULDN'T BE HERE IF JON SCOTT AND THE MAYOR WOULD'VE RETURNED MY CALLS. I CALLED 3 TO 5 TIMES AND Y'ALL NEVER CALLED ME BACK, BUT I WANT TO MAKE YOU AWARE OF IS MR. GILL AND JOHN JOHNSTON AND JERRY JAMES ARE ALL AWARE OF THIS. THE CITY HAS BEEN CALLING IN HUNDREDS OF LOADS OF SCRAPS OVER THE YEARS. THEY BUILT UP A BIG DIKE THAT RUNS DOWN THERE, TO BACKUP WATER. AND TO FLOOD IT ALL OUT. I TRIED TO GET A HOLD OF Y'ALL TO LET YOU KNOW ABOUT IT. I LET THE PREVIOUS MAYOR KNOW ABOUT IT. HE WASN'T CONCERNED ABOUT IT. I LOOKED UP VICTORIA ADVOCATE, AND JERRY JAMES, WHEN THEY GAVE HIM THOSE LAKES, THE GRAVEL PITS THERE, HE SAID, THIS IS A BLESSING WE NEVER WOULD'VE BEEN ABLE TO AFFORD. THERE IS STORAGE FOR OUR WATER. AND ALSO, IT HELPS WITH FLOODS. HE SAID, THIS IS

[00:15:04]

YOU'RE HAULING ALL THE STUFF IN AND FILLING THEM IN. AND IT HURTS THE FLOODS. I'VE BEEN AFTER THIS FOR EIGHT YEARS. AND I KEEP GETTING BLOWN OFF. I'VE TALKED TO ALL THE POLITICIANS AROUND. THEY JUST BLOW IT OFF. THE DISTRICT ATTORNEY KNOWS ABOUT IT. MICHAEL CLOUD KNOWS ABOUT IT. NONE OF THEM DO ANYTHING BECAUSE THEY FIND OUT WHO IS INVOLVED. THAT GUY WAS HOT ON THIS. HE WANTED TO KNOW THEY WERE DOING. THEY FLUTTERED OUT GRANTS ADDITION AND IT BRINGS IN MORE FEMA MONEY. I MEAN, IT'S EVERYBODY. TO ALL THEIR BUDDIES -- ALL Y'ALL'S BUDDIES THAT ON THE STORES. THEY BUY ALL THE MATTRESSES, THE INSULATION, THE SHEET ROCK. AND IT IS PITIFUL. AND I'M EMBARRASSED, AND MR. KILLED -- GILL KEEPS BLOWING ME OFF. I WENT TO SEE HIM YESTERDAY, AND HE WAS TOO BUSY TO SEE ME. THEY SAID THEY HAVE PERMITS. THEY WERE SUPPOSED TO DO A BIG STUDY WHEN THEY GOT THESE PERMITS. THEY GOT TWO PERMITS. ONE, 15 YEARS AGO AND ONE A YEAR OR SO AGO. AND IT SAID TO FILL INTO LITTLE PONDS, THEY CALL THEM. IT IS A GREAT BIG GRAVEL PIT.

YOU SAW THEM AT PATRIOT PARK. THOSE ARE SUPPOSED TO BE STORAGE. I TURNED THEM INTO ENVIRONMENTAL PEOPLE AND THEY WENT DOWN AND SAID THEY HAVE TO CLEAN THAT UP BECAUSE IT WAS CONTAMINATING ALL THAT. Y'ALL ARE GETTING YOUR DRINKING WATER OUT. IS MY TIME UP? LET ME TELL YOU ONE OTHER THING. THE COUNTY PUT IN A SHOOTING RANGE AT THE FLOODS ON. THEY ARE SHOOTING MILLIONS OF ROUNDS INTO THAT. WHEN IT FLOODS, IT WASHES INTO THOSE LAKES. THOSE LAKES ARE CONNECTED TOGETHER BY AN AQUIFER. Y'ALL ARE GETTING YOUR DRINKING WATER -- YOU ARE PUMPING OUT OF THE RIVER AND INTO THE LAKES. IT IS ALL CONNECTED TOGETHER. IT IS GETTING ALL THAT LED INTO THERE. THEY DON'T CARE ABOUT THAT, EITHER. I JUST WANTED TO LET Y'ALL KNOW SO WHEN IT FLOODS AGAIN THE NEXT TIME , EVERYONE WILL KNOW WHO TO SUE. LET Y'ALL ALL KNOW ABOUT IT.

>> I APPRECIATE YOUR COMMENTS. THANK YOU. MR. FISK.

>> GOOD EVENING, MR. FISK. WELCOME BACK.

>> GOOD EVENING, COUNCIL, AND INTERESTED CITIZENS. ONCE UPON A TIME, WHAT I SAY WILL BE INTERESTING BECAUSE INTERESTING THINGS OFTEN START WITH ONCE UPON A TIME. SAN ANTONIO, 1988.

A GROUP OF US WERE TRYING TO SOLVE A PROBLEM AT 2:00 A.M. WE HAD NOT ENCOUNTERED IN THIS MAGNITUDE. WE HAD ALL COOKED HOT DOGS BEFORE. THE QUESTION IS WHAT IS THE MOST EFFICIENT WAY TO COOK, PACKAGE 50,000 HOTDOGS EACH MORNING. WE STARTED AGAIN .

TO DO WORKING. IT MAY VERY WELL BE GOOD.

LOT OF RESEARCH TO CAPITALIZE ON WHAT HAD WORKED FOR OTHER PEOPLE. A LOT OF EXPERIMENTATION. WE TRIED NEW THINGS. THE GOAL WAS TO FIND OUT WHAT WORKED BEST FOR US WITH THE FACILITIES AT ART DISPOSAL. LATER, IN OTHER POSITIONS, I CONTINUE TO USE THIS GAME. BY NOW, YOU'RE PROBABLY WONDERING WHAT THIS HAS TO DO WITH ANYTHING. ONE OF THE PROBLEMS THAT VICTORIA FACES IS THE BEST WAY TO IMPROVE LIVES AND POPULATION. DO YOU NEED A CENTRAL SAFE PLACE FOR THOSE LIVING IN THEIR CARS? DO YOU NEED TO CREATE INDIVIDUAL SLEEPING POTS? TO NEED TO FOCUS ON TINY HOUSES AS TRANSITIONAL PLACES TO LIVE? WHAT OPTIONS HAVE NOT BEEN CONSIDERED OR EXPLORED? WHAT HAS FILLED IN OTHER PLACES? I DON'T KNOW THE ANSWERS TO THESE QUESTIONS. THERE'S A LOT OF COMBINED INTELLIGENCE AND HIS COUNCIL. THE CITY STAFF AND CITIZENS OF VICTORIA HAVE CONFIDENCE THAT THIS WILL SOLVE THE PROBLEMS IF WE PUT OUR HEADS TOGETHER. THANK YOU.

>> THANK YOU, MR. FISK. IN THE FINAL CARD I HAVE.

[00:20:08]

>> THANK YOU. I LIVE AT 2204 EAST NORTH STREET. THERE'S A WHOLE BUNCH OF RUBBISH AND TRASH AND MATTRESSES OVER ON LEWIS STREET AND NO ICS AT A CAR WASH. PEOPLE ARE LIVING AT THE CARWASH, AND THE TRASH ISN'T JUST ON THE SIDEWALKS.

THEY ARE THROWING THE TRASH IN THE ROAD. YOU KNOW, IT IS A TRAFFIC HAZARD. THEY SET UP A COUPLE OF TENTS TODAY. IT IS GETTING OUT OF HAND. I WAS WONDERING IF SOMEONE CAN GET HOUSING FOR THE HOMELESS PEOPLE, OR SOMEONE COULD CLEAN OUT THE TRASH. I MEAN, IT'S NOT FAIR TO THE BUSINESS OWNER WHO SPENT A LOT OF MONEY PURCHASING THAT CARWASH, AND PEOPLE DON'T WANT TO WASH THEIR CARS THERE BECAUSE THEY ARE TOO SCARED. I WISH SOMEONE COULD CONTACT THE OWNER OF THE CARWASH AND MAYBE SOMEONE CAN CONTACT THE SALVATION ARMY AND LET THEM KNOW, BUT IT IS GETTING OUT OF HAND. THEY ARE TAKING THE CARTS FROM HEB AND PUTTING THEIR STUFF IN IT.

THERE IS TRAFFIC IN THE MIDDLE OF THE ROAD. IT STARTED YESTERDAY. I WAS JUST WONDERING IF SOMEONE COULD DO SOMETHING ABOUT IT, AND I ALSO WANT TO THINK -- THANKED THE LEGAL DEPARTMENT FOR HELPING WITH THE TRAILER PARK. ADDISON LACEY AND ADAM WEST, SINCE THEY GOT INVOLVED, THE PLUMBING WORK -- AT THE TRAILER PARK, HAS SPED UP, AND I APPRECIATE THAT VERY MUCH. THE TRAILER PARK OWNER WASN'T ALLOWED TO DO THAT ANYMORE. HE HAD TO COME TO VICTORIA IN PERSON. AND ANSWER UP TO THE CITY COUNCIL. AND CITY MANAGEMENT, WHY IT IS TAKING SO LONG. I APPRECIATE THE LEGAL TEAM AND EVERYONE ELSE, AND RICK MADRID FOR TAKING CARE OF THAT SPOT ON RIO GRANDE, WHERE IT APPEARS THE LANDLORDS DON'T WANT TO TAKE CARE OF PROPERTY AND STUFF. THANKS AND HAVE A GOOD EVENING.

APPRECIATED. >> THANK YOU. THAT IS ALL THE

[D. Consent Agenda:]

AGENDA. MS. HILBRICH . >> ITEM D1 IS ADOPTION OF MINUTES OF THE SPECIAL MEETING ON SEPTEMBER 27, 2024 AND THE REGULAR MEETING ON OCTOBER 1, 2024. ITEM D3 IS AUTHORIZE THE CITY MANAGER TO EXECUTE A NOTICE OF GRANT AND AGREEMENT AWARD WITH THE NATURAL RESOURCE CONSERVATION SERVICE'S EMERGENCY WATERSHED PROTECTION PROGRAM FOR FINANCIAL AND TECHNICAL ASSISTANCE TO REPAIR EROSION DAMAGE IN THE WEST OUTFALL/STAYTON AVENUE BRIDGE AREA IN AN ESTIMATED AMOUNT OF $949,992.00 WITH THE CITY REQUIRED TO MATCH 25% OF CONSTRUCTION COSTS. KATY -- ITEM 4 IS APPROVE A MEMORANDUM OF UNDERSTANDING WITH VICTORIA COUNTY FOR THE 2024 EDWARD BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT (JAG) PROGRAM.

ITEM D5 IS APPROVE CONTRACT RENEWALS WITH LAWN STAR YARD CARE, KEVIN STEWART, DBA, GRND FX, LLC AND BIO LANDSCAPE AND MAINTENANCE, INC. DBA YELLOWSTONE LANDSCAPING FOR THE MOWING OF CITY-OWNED PROPERTIES, IN THE CUMULATIVE

AMOUNT OF $558,557.71. >> THANK YOU, MS. HILBRICH.

>> MOTION TO APPROVE . >> SECOND.

>> ALL IN FAVOR, SAY AYE. >> AYE.

[1. Appoint/Reappoint the Downtown Tax Increment Reinvestment Zone Board c...]

>> ANY OPPOSED? >> WE MOVE ON TO ITEM E 1.

>> ITEM E1 IS APPOINT/REAPPOINT THE DOWNTOWN TAX INCREMENT REINVESTMENT ZONE BOARD CHAIR. DANIELLE WILLIAMS, DIRECTOR OF

ECONOMIC DEVELOPMENT. >> WE ARE GOING TO GIVE A BRIEF UPDATE OF WHERE WE ARE AT. TO GIVE YOU A LITTLE BIT OF INFORMATION, PUT TOGETHER THIS SLIDESHOW. FOR THOSE THAT ARE NOT AWARE, CITY COUNCIL ADOPTED IT IN 2010 ON. THE BOARD HAS ENTITIES IN THE MAIN STRIP -- BOARD.

INAUDIBLE ] THEY HAVE DEVELOPED A SUBCOMMITTEE AND IS WORKING WITH THE SALES TECH SUPPORT TO FINALIZE AN INCENTIVE GUIDELINE FOR FUTURE DEVELOPMENT. SO IN GENERAL, THE TIRZ HAS A 25 YEAR

[00:25:01]

>> MISS WILLIAMS, BEFORE YOU LEAVE THIS SLIDE, FOR THE BENEFIT OF PEOPLE WATCHING THAT ARE NOT FAMILIAR WITH THE TIRZ, THIS STATEMENT SAYS YOU HAD THREE TAXING ENTITIES ARE GETTING 100% OF THEIR TAX QUESTION. COULD YOU EXPLAIN

THAT MORE CLEARLY? >> RIGHT. WHEN I GET TO ONE OF THE FUTURE SLATES, IT BREAKS DOWN THAT IT WAS JUST INCREMENT. WHEN THE BASELINE IS SET AT THE VALUED 67 MILLION, AT 21, AND INCREMENT THAT HAS INCREASED ON THE PROPERTY VALUES OVER THE NEXT FEW YEARS WITH THOSE TAXING ENTITIES, THEY WILL PROVIDE OR PUT IN THE COVERS 100% OF THAT. THAT'S NOT SAYING ALL OF THE MONEY ON THE VALUED PROPERTY IS GOING INTO THAT COVERS. IT IS JUST A SMALL INCREMENT THAT HAS INCREASED OVER THE YEARS FROM THAT BASELINE.

>> WITHIN THE BOUNDARIES OF THE TIRZ, KURT. I HAVE A GRAPHIC THAT SHOWS IT BETTER LATER IN THE PRESENTATION. TALKING ABOUT THE CHAIR APPOINTMENT, CURRENTLY, JED LACEY IS OUR BOARD CHAIR BRITT AND COUNCILS, ACCORDING TO THE BYLAWS, IT IS YOUR RESPONSIBILITY TO APPOINT THE CHAIR EVERY YEAR, AND THAT MEMBER APPOINTMENTS ARE PROVIDED BY TAXING ENTITIES.

AND THEN WE HAVE TERMS THAT ARE DECIDED BY THE BOARD. HERE ARE THE CURRENT MEMBERS. WE HAVE JED LACEY, AS I MENTIONED.

ASHLEY THOMAS. THEY SERVE AS THE MAIN BOARD MEMBERS ON THIS BOARD.

NAVIGATION DISTRICT. DR. YOUNG FROM COUNCIL, ALSO MARK FROM COUNCIL. TONIGHT, WE SEEK THE NOMINATION AND APPOINTMENT OF JED LACEY AS THE BOARD CHAIR. AND HERE IS THAT NICE GRAPHIC THAT EXPLAINS IT IN MORE DETAIL. THIS IS NOT A NEW TAX ON THE DEVELOPMENT OR ANY DEVELOPMENT IN THE DOWNTOWN TIRZ. IT REDIRECTS THE TEXT GENERATED.

ALL RIGHT. IF ANYBODY IS INTERESTED, OUR NEXT MEETING IS SCHEDULED FOR NOVEMBER 4TH AT 12:00 P.M. AND YOU ARE ALL WELCOME TO JOIN US. ARE THERE ANY OTHER FURTHER QUESTIONS?

ANY QUESTIONS? >> SO IT IS INCREMENTAL. WHAT IS THE CURRENT VALUE? HOW MUCH HAS IT INCREASED?

>> I'M SORRY. CAN YOU HELP ME GO OVER IT?

>> YOU WANT TO KNOW WHAT THE INCREASE IN TAX REVENUE IS?

>> WHAT THE INCREASE IN TAX REVENUE AND WITH THE INCREASE IN THE PROPERTY VALUE REVENUE IS BASED OFF OF.

>> THE FIRST YEAR, WE GOT ABOUT 41, $42,000. WE HAVE $41,000.

WELL I GOT ABOUT $80,000 SO FAR. AND THE TAXES BASED ON WHERE THE COUNCIL DECIDES IT SHOULD BE. SO AS YOU RECALL, WE REDUCE THE TASK FROM -- TAX FROM LAST YEAR.

IT GOES UP. >> I THINK YOUR QUESTION, ALSO, IF WE CAN'T PULL UP AN ANSWER NOW, WE CAN GET IT TO YOU. I THINK IT IS WONDERING, WHAT IS THE VALUE OF THE DISTRICT,

RIGHT? >> THE VALLEY. I'M SORRY.

>> THANKS FOR TRANSLATING THAT.

>> YOU'RE WELCOME. I'M HERE ALL DAY.

>> ARE YOU SURE? >> I HOPE.

>> WE ARE 80 POINT SOMETHING THE BASE WAS 67 WITH SOME CHANGE. SO YOU HAVE AN INCREMENT OF 27 MILLION.

>> THANK YOU. >> THANK YOU FOR ADDING TO THAT. BOOK NOW. THANK YOU.

VICTORIATX.GOV/PARKS DIBLE ] W' RECOMMENDATION? DO WE WANT TO

[00:30:07]

>> I WOULD BE HAPPY TO SECOND. >> I APPRECIATE HIS LEADERSHIP.

>> THAT IS A MISSION AND A SECOND FROM THE TWO GUYS ON THE BOARD. THAT IS STRONG ENOUGH FOR ME.

>> I HAVE A MOTION AT A SECOND. IS THERE ANY DISCUSSION? ALL IN

FAVOR, SAY AYE. >> AYE.

>> ANY OPPOSED? >> HE DID EXPRESS HIS APOLOGIES. HE HAD ANOTHER MEETING. HE WOULD HAVE LIKED TO

[2. Consent to the creation of Willow Creek Municipal Utility District of ...]

>> CALL AND TELL HIM CONGRATULATIONS.

>> ALL RIGHT. ITEM E 2. >> ITEM E2 IS A RESOLUTION TO CONSENT TO THE CREATION OF WILLOW CREEK MUNICIPAL UTILITY DISTRICT OF VICTORIA COUNTY, WHICH LIES WITHIN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF VICTORIA.

>> ALL RIGHT. THIS IS GOING TO BE A PRESENTATION BY A FEW DIFFERENT PEOPLE. TO KICK THIS OFF, ALLISON AND JULIE WILL REPRESENT THE CITY, PROVIDING AN OVERVIEW . THIS HAS BEEN A PROJECT THAT -- YOU WILL MEET THE DEVELOPER AND INDIVIDUALS INVOLVED IN A BIT. THIS IS WHAT THEY HAVE BEEN LOOKING AT FOR OVER A YEAR. I WAS LOOKING AT MY EMAILS WHILE WE WERE SITTING HERE. THESE CONVERSATIONS LAST -- STARTED LAST SUMMER. THERE HAS BEEN QUITE A BIT OF WORK THE INTENT OF TODAY IS TO HELP EDUCATE ALL OF YOU ABOUT THE PROJECT WHILE AT THE SAME TIME CONSIDERING A CRITICAL STEP IN THE PROCESS AS THEY CONTINUE TO DO SOME OF THE DUE DILIGENCE THEY EXPLORED. I KNOW THAT THIS PROJECT DOES SOME OF YOU ARE PROBABLY HEARING ABOUT THIS PROJECT FOR THE FIRST TIME, AND SO, PLEASE ASK ALL THE QUESTIONS OF STAFF, OR THE DEVELOPER OR THE REPRESENTATIVE LATER ON. AGAIN. WE WANT TO MAKE SURE THAT EVERYONE IS FULLY UNDERSTANDING OF WHAT IT IS, WHAT IT ISN'T, AND WE UNDERSTAND THE PROCESS, AS WELL AS WHAT YOU ARE BEING ASKED TO DO, TO SUPPORT TONIGHT.

SO. ALLISON. >> GOOD EVENING, COUNCIL.

BEFORE WE BRING THE REPRESENTATIVES UP HERE, MR. GARZA ASKED JULIE AND I TO GIVE YOU A BRIEF HIGH-LEVEL OVERVIEW OF WHERE THE AUTHORITY FOR MUNICIPAL UTILITY DISTRICT COMES FROM. JULIE WILL EXPLAIN A LITTLE BIT OF THE PARAMETERS IN TERMS OF HOW THE CITY IS INVOLVED IN THAT. TO MY KNOWLEDGE, THIS IS THE FIRST M.U.D.. I BELIEVE IT IS THE FIRST ON THE CITY HAS BEEN INVOLVED WITH. THIS IS NEW FOR EVERYONE BUT WE ARE ALL LEARNING AS WE GO.

] THE M.U.D. IS A SPECIAL DISTRICT CREATED UNDER THE TEXAS CONSTITUTION AS WELL AS THE TEXAS WATER GOOD. IT IS A POLITICAL SUBDIVISION WITH AN ELECTED BOARD OF DIRECTORS, AND IT IS GOVERNED BY THE TEXAS WATER CODE, CHAPTERS 49, 50, AND 54, AND ANY OTHER LAWS THAT ARE GENERALLY APPLICABLE SUCH AS OPEN MEETINGS AND OPEN RECORDS. THINGS OF THOSE NATURE.

UNDER TEXAS WATER CODE, SECTION 54.012, I'VE LISTED ALL OF THE PURPOSES. THIS IS SEVERAL SLIDES. I'M NOT GOING TO READ THEM TO YOU ONE BY ONE. A COUPLE OF THOSE EXAMPLES WOULD BE THE CONTROL, STORAGE, AND PRESERVATION OF STORMWATER -- FLOODWATER -- RECLAMATION AND IRRIGATION OF ARID, SEMIARID AND OTHER LAND IRRIGATION. A LOT OF THE PURPOSES OF THE DISTRICT REVOLVE AROUND WATER. WATER, WASTEWATER, SEWER, THAT SORT OF THING. THOSE PURPOSES ARE CONTINUED. THE CONTROL ABATEMENT AND EXCHANGE OF ANY SHORTAGE OF HARMFUL EXCESSIVE WATER, THE PRODUCTION PRESERVATION OF THE. HE AND SANITATION OF WATER WITHIN THE STATE.

PRESERVATION OF ALL NATURAL RESOURCES OF THE STATE. NOW, THOSE, PURPOSES ARE ALL LISTED UNDER THE TEXAS CONSTITUTION.

I'LL BE HAPPY TO SEND THIS TO Y'ALL IF YOU WANT TO LOOK THROUGH EACH AND EVERY SINGLE ONE OF THEM.

GO BACK. THERE IT IS. UNDER THE TEXAS WATER CODE, WHAT IS THE PURPOSE OF THE M.U.D.? THE PURPOSE OF A M.U.D. IS TO AUTHORIZE THE BOARDS YOU PURPOSE -- PURCHASE, TO OPERATE, MAINTAIN, REPAIR, IMPROVE, EXTEND INSIDE AND OUTSIDE OF ITS BOUNDARIES. ANY IMPROVEMENT FACILITIES INAUDIBLE ] AS AUTHORIZED BY THE CONSTITUTION OF THIS CODE

[00:35:01]

TO SUPPLY WATER FOR MUNICIPAL USES FOR DOMESTIC USES. FOR POWER AND COMMERCIAL USES AND ALL OTHER BENEFICIAL USES AND CONTROLS. IT IS ALSO TO TRANSPORT AND CONTROL ALL DOMESTIC AND COMMUNAL WASTE, WEATHER AND FOOD COMES OUT, OR COMPOSITE STATE. AS YOU CAN SEE, THERE'S SEVERAL MORE , GOING THROUGH THE LIST. THESE ARE ALL LAID OUT IN CODE. THE LAST ONE, WHICH I THINK IS GOING TO COME INTO PLAY WITH THIS PARTICULAR MUD DISTRICT, IS TO PROVIDE PARKS AND RECREATIONAL FACILITIES FOR INHABITANTS OF THE DISTRICT, AND WHEN THE DEVELOPER GETS TO THEIR PRESENTATION LATER, YOU WILL SEE HOW THAT IS INCORPORATED INTO THIS PARTICULAR M.U.D.. MUCH LIKE ANY OTHER GOVERNMENTAL ENTITY, M.U.D.S HAVE ENFORCEMENT OVER PROPERTY RESTRICTIONS AND THE ISSUANCE OF BONDS. THE ISSUANCE OF FONTS IS WHAT THE DEVELOPER WILL DISCUSS WITH YOU IN TERMS OF HOW THEY DEVELOP THE INFRASTRUCTURE FOR THE M.U.D.. YOU'LL SEE ON THE RESOLUTION, YOU ARE BEING ASKED TO CONSENT TO THE CREATION OF THE M.U.D., WHICH I WILL EXPLAIN WHY IN A SECOND. BUT ALSO, THE ISSUANCE OF BONDS SO THEY CAN BUILD THE AVERAGE WITHIN THE M.U.D.

DISTRICT. AND I APOLOGIZE. I KNOW THIS IS VERY DRY AND BORING. HOW DOES A DEVELOPER CHOOSE TO CREATE A M.U.D.? WHAT DO THEY DO THIS? THERE ARE TWO MAIN REASONS. THERE'S OTHERS, BUT THESE ARE THE ONES THAT I THINK ARE MOST APPLICABLE.

CREATING A M.U.D. IS A FINANCING VEHICLE. IT ALLOWS THE DEVELOPER TO CONSTRUCT THE FACILITIES AND ONCE THERE IS SUFFICIENT VALUE, THE BOARD OF THAT M.U.D. CAN ISSUE THE M.U.D. AND REIMBURSE THE DEVELOPER. IT IS A FINANCIAL VEHICLE FOR CREATING A DEVELOPMENT THAT IS ALLOWED BY STATUTE, THAT SORT OF TAKES THE DEVELOPMENT OF THE CITY'S HANDS ARE THE OTHER DEVELOPERS AND ALLOWS THEM, AS THEY WILL EXPLAIN, OVER THE COURSE OF MANY YEARS, TO BASICALLY REIMBURSE THE DEVELOPER FOR THE COST OF GRADING THAT DEVELOPMENT. IT IS AN ENTITY TO OWN, OPERATE, AND MAINTAIN FACILITIES AFTER THEY COMPLETE THE DEVELOPMENT. SO THERE'S TWO BASIC WAYS THAT M.U.D.S ARE CREATED. ONE OF THE WAYS IS THE LANDOWNER OR DEVELOPER CAN ASK THE CITY FOR CONSENT TO CREATION. THE DEVELOPER WILL EXPLAIN THEIR PROJECT. AND AS FOR YOUR CONSENT TO CREATE THEIR M.U.D.. IF YOU CHOSE NOT TO CONSENT OR NOT TO SUPPORT IT, THE DEVELOPER CAN THEN PETITION TO TCQ TO HAVE THEM APPROVED THE CREATION OF THE M.U.D., IN WHICH CASE, THAT IS MORE OF AN ADMINISTERED OF PROCESS, BUT AGAIN, IT IS THE SAME RESULT, AND SO, IN MY RESEARCH, WHAT I'VE LEARNED IS THAT THESE M.U.D.S ARE BECOMING MORE AND MORE COMMON. AND STATE LAWS HAVE BEEN CHANGED RECENTLY TO REALLY ENCOURAGE THESE KINDS OF SPECIAL DISTRICTS. TCQ LOOKS FAVORABLY ON THEM WHENEVER THEY RECEIVED THE PETITION. AND SO, THESE ARE SHED AND WANT TO GO THROUGH THE WHOLE TCQ PROCESS WITH YOU ALL, BUT AS I SAID, IT'S UNDER THE ADMINISTRATIVE CODE. THAT PROCESS GOES THROUGH THAT. WE WOULD BE INVOLVED WITH THAT, AS WELL, AS A NONCONSENTING PARTY TO THAT PETITION. AND, THAT IS A REALLY HIGH LEVEL VIEW OF HOW THEY ARE ALLOWED TO BE CREATED. I THINK THE DEVELOPER WILL BE ABLE TO EXPLAIN TO YOU WHY THEY WANT TO CREATE THIS M.U.D. AND THE VALUE IT WILL PROVIDE TO OUR COMMUNITY AND TO THE RESIDENCE.

AND SO, DO YOU HAVE ANY QUESTIONS FOR ME BEFORE I

HANDED OVER TO JULIE? >> COULD YOU GO BACK TO YOUR THIRD SLIDE? IT HAD BEEN EXCEPTION . WITH THE EXCEPTION OF NUMBER 7, ALL OF THESE PURPOSES. CAN YOU EXPLAIN THAT?

>> YEAH. THAT COMES FROM THE STATUTE.

AND BEFORE Y'ALL ASK, BECAUSE I KNOW THAT YOU'RE GOING TO, HOW DOES THE UDO PLAY INTO THIS? THIS IS WHERE THE M.U.D.

WILL BE CREATED. THOSE RESTRICTIONS AND RULES. THE

[00:40:04]

WELL. >> ANY OTHER QUESTIONS?

>> I HANDED OVER TO JULIE. >> THANK YOU.

>> ALLISON JUST STOLE MY THUNDER. I ONLY HAVE ONE SIDE THAT IT HAS NOTHING TO DO WITH M.U.D.S, REALLY. IT IS TO EXPLAIN HOW M.U.D.S TIE INTO THE DEVELOPMENT PROCESS. IT HAS A LOT OF LAYERS TO IT. BUT YOU ARE HERE TONIGHT TO CONSIDER IS THAT FIRST LAYER THAT ALLOWS THE DEVELOPER TO CREATE THE M.U.D.. SUBSEQUENT LAYERS WOULD BE PLAT APPROVAL, AND ALSO, IN THE DEVELOPERS DUE DILIGENCE, FOR CREATING THE M.U.D. AND MOVING THIS DEVELOP MEDFORD, THEY HAD TO DO A LOT OF ENGINEERING STUDIES ON HOW IS THAT M.U.D. GOING TO PROVIDE THE SERVICES THAT NEED TO BE PROVIDED, AS PER OUR CODE AND STATE LAWS AND WHATNOT. HOW ARE THEY GOING TO PROVIDE WATER TO THE INDIVIDUAL HOMES THAT ARE GOING TO BE BUILT? HOW DO THEY HANDLE STORMWATER? ARE THEY GOING TO DO WITH THEIR SEWER? NEEDS, AND SO, THAT'S ALL PART OF THE DUE DILIGENCE PROCESS THAT THE DEVELOPERS HAD TOGETHER AS THEY CREATE THIS M.U.D.. WHAT YOU'RE CONSIDERING TONIGHT IS JUST TO CONSENT FOR THE CREATION OF THE M.U.D.. IF THE DEVELOPER COMES BACK AND SAYS, WE WOULD LIKE THE CITY TO PROVIDE WATER INAUDIBLE ] OR WOULD LIKE THE CITY TO TAKE ON OUR SORGHUM THIS WOULD BE SUBSEQUENT APPROVALS AND PROCESSES AND CONSIDERATION FOR COUNCIL. AT THAT TIME. SO THIS IS THE VERY FIRST LAYER. BUT AS YOU KNOW, AND DEVELOPMENTS, THERE'S OFTEN A LOT OF DIFFERENT PROCESSES. LATER. SO THE POINT OF THE SLIDE IS THAT, YES, OUR SUBDIVISION REGULATIONS DO APPLY TO THE ETJ.

REQUIREMENTS FOR PLOTS. LOT SIZE COMES INTO PLAY. YOU KNOW, HOW BIG DOES THE LOT NEED TO BE IF IT'S GOING TO BE ON A SEPTIC SYSTEM OR, YOU KNOW, WATER WELL. WHEN A DEVELOPER EXIT DEVELOPING IT AND ALL THE INFRASTRUCTURE WOULD ALLOW THEM TO BASICALLY BUILD A MINI CITY WITH REGARDS TO THAT TYPE OF INFRA STRUCTURE ON ETJ. THAT IS MY SLIDE, AND I WOULD BE HAPPY TO ANSWER CORSETS BEFORE WE TURN IT OVER TO THE DEVELOPERS.

>> I HAVE ONE. I THOUGHT ABOUT IT AFTER YOU SAID I'M SORRY. YOUR SLIDE ON THAT THERE'S TWO WAYS TO CREATE MUD. IT IS WITH APPROVAL OF THE CITY, OR THROUGH TCQ. I'M ASSUMING THAT IF, FOR WHATEVER REASON, THAT THE COUNCIL DIDN'T APPROVE , THAT THE TCQ OPTION WOULD BE AVAILABLE TO THE DEVELOPERS. IS THAT A CORRECT ASSUMPTION?

>> ABSOLUTELY. >> AND IF YOU SAID THAT, AND I MISS IT, I PONCHA SPRINGS BUT YOU CAN ASK THEM IF THAT IS

WHAT THEIR PLAN WOULD BE. >> WILL HIT. BUT WHO HAS THE

OPTION TO MAKE THAT DECISION? >> I WOULD ASSUME THE DEVELOPER

DOES. >> YOU WILL SEE A PETITION FROM THE DEVELOPER. AS THE LANDOWNERS, REQUESTING YOUR CONSENT. THAT IS TYPICALLY THE WAY THEY WILL GO. BECAUSE IT IS FASTER AND IT GETS AROUND TO THE END A LITTLE BIT QUICKER, BUT THEY DIDN'T HAVE TO ASK. THEY GO STRAIGHT TO TCQ.

>> AND ON THEY COME AND PRESENT THE PROJECT, YOU WILL SEE WHY IT IS LOGICAL FOR US TO BE INVOLVED FROM THE BEGINNING WE HAVE BEEN SINCE LAST YEAR. EVEN THOUGH LEGALLY THEY HAVE THESE OPTIONS, JUST THE AMOUNT OF WORK THAT WOULD BE NEEDED FOR UTILITIES, IT NECESSITATES US TO BE INVOLVED WITH THIS FROM

THE BEGINNING. >> HOW MANY M.U.D. DISTRICTS

ARE IN VICTORIA? >> CURRENTLY?

>> THERE'S TWO.

>> DID YOU HEAR THAT? BUT WHAT AND OAK CREEK.

>> SO BLOOMINGTON IS NOT. >> NO.

>> SINCE WE GET A SECOND SHOT AT QUESTIONS, I'VE GOT A QUESTION, AND IT MAY BE SOMETHING THAT EVEN THE DEVELOPER IS GOING TO ANSWER, SO HEADS UP ON THAT, I LOOKED AT THE PETITION. I CAN'T SAY I READ IT WORD FOR WORD, BUT I UNDERSTAND WHY THE CITY WOULD BE ASKED FOR PERMISSION TO CREATE THE H.U.D.. ESSENTIALLY, THEY ARE GOING TO COMPETE WITH US, BUT OBVIOUSLY, WE WOULD HAVE THE INFRA STRUCTURE READY

[00:45:02]

>> IF THERE IS A REASON BEYOND, MAYBE AS A DEVELOPER, I CAN EXPLAIN IT, BUT THAT'S THE PROCESS THAT IS LAID OUT. THAT IS WHAT WE ARE TRYING TO FOLLOW.

>> MY QUESTION IS WHY IS IT IN THE STATUTE?

>> THAT'S A GREAT QUESTION BRADY'S BUT THAT CAN BE ANY

REASON. >> IT MAY BE OUT LEGISLATURE ISSUE. DESPITE THAT MAY HAVE TO DO WITH THE FACT THAT SOMEBODY,

YOU KNOW, IS DOING GOLDFISH. >> I CAN CERTAINLY LOOK INTO THAT FOR YOU. BUT I DO NOT KNOW THE ANSWER TO THAT RIGHT NOW.

>> ALL RIGHT. >> ANY OTHER CUSHIONS? -- QUESTIONS?

>> IN THE FUTURE, IF YOU CONSENT THIS EVENING, WE WILL START WORKING ON SPECIFIC DEVELOPMENT AGREEMENTS THAT HAVE CERTAIN PARAMETERS. THERE'S OPTIONS FOR -- SO IF WE WERE TO THEIRS IF THEY WERE TO DEVELOP SOME OF THIS COMMERCIALLY, THEN THERE IS AN OPPORTUNITY FOR US TO CAPTURE BACK SOME OF THAT SALES TAX . WE WON'T NECESSARILY CAPTURE THE PROPERTY TAX, AND THOSE THINGS CAN BE WORKED OUT, SO THERE'S PLUSES AND MINUSES. YOU KNOW. ONE OF THE CHALLENGES THAT I HAVE LEARNED IN MY EXPERIENCE IS THAT RESIDENTS OF M.U.D.S OFTEN THINK THAT EVERYTHING IN M.U.D.S IS CONTROLLED BY THE CITY, WHEN IT'S NOT. WE WILL GET QUESTIONS. NOT NECESSARILY THE DEVELOPER WHO OWNS THE PROPERTY. THERE'S -- PART OF THE DRAFT AGREEMENT THAT WE HAVE SEEN, BUT NOT PRESENTING TO YOU BECAUSE WE ARE STILL WORKING ON IT IS THAT WHEN THE M.U.D. IS PAID OFF, THAT THE CITY WILL THEN ANNEX THAT INTO --

>> HAVE THE OPTION. TO ANNEX IN THE CITY LIMITS, AND WE CAN START CAPTURING BACK THE SALES TAX AND ALL OF THOSE THINGS THAT IS OUTSIDE OF STATE LIMITS CURRENTLY. THE PROBLEM WITH DOING IT BEFORE THE BONDS ARE PAID OFF IS THAT WE TAKE IT OVER EARLY. WE THEN BECOME RESPONSIBLE FOR THAT DEBT.

WITHIN THE M.U.D.. THERE'S PLUSES AND MINUSES, HONESTLY.

IT CAN GO BOTH WAYS. SO THERE ARE THINGS THAT IF THEY ARE IMPORTANT TO YOU ALL, WE CAN WORK ON NEGOTIATING WITH THE DEVELOPER DOWN THE ROAD. WE WILL CONTINUE TO HAVE A

CONVERSATION WITH Y'ALL. >> AND SOME OF THE FOLKS THAT ARE HERE TONIGHT HAVE MORE EXPERIENCE THAN ANYONE OF US BUT I KNOW THEY'RE PROBABLY TAKING NOTES ON THINGS TO ADD.

>> THEY PROBABLY ANSWERED ALL YOUR QUESTIONS. PLEASE FILTER -- FEEL FREE TO ADDRESS THAT. BUT DID YOU SEE THAT WE WON'T COLLECT PROPERTY TAX UNTIL THE BONDS ARE PAID OFF?

>> YEAH. IT IS IN THE ETJ. IT'S NOT INSIDE CITY LIMITS.

>> OKAY. THE PROPERTY TAXES WOULD BE PAID TO THE COUNTY.

>> YEAH. >> I THINK IT WOULD BE GOOD TO ALLOW THE PRESENTATION FROM THE DEVELOPER BECAUSE I THINK SOME OF THE QUESTIONS YOU ARE BRINGING UP WILL BE ADDRESSED IN THAT. BUT THEN ALSO, LIKE I MENTIONED, THEY HAVE QUITE A BIT OF EXPERIENCE IN THE PROJECTS, AND SO BEFORE WE GET INTO GREATER DETAIL, I WOULD LIKE TO GIVE THEM AN OPPORTUNITY, YOU KNOW, THEY FLEW IN, THEY DROVE IN, SO IT WOULD BE GOOD TO HEAR FROM THEM, AS WELL, SO IF IT'S ALL RIGHT WITH YOU, I'M GOING TO INTRODUCE THEM. SHE WILL COME UP AND INTRODUCE THE TEAM AND START THEIR PRESENTATION.

>> THANK YOU ALL FOR YOUR TIME THIS EVENING AND THE OPPORTUNITY TO TALK ABOUT THIS. I AM KELLY. I AM THE ENGINEER ON THIS DEVELOPMENT. I WANT TO POINT OUT TO THE TEAM, MYSELF, MYSELF AND SCOTT WILL EACH BE SPEAKING. I'M THE ENGINEER ON THE PROJECT. WE HAVE THE DEVELOPERS. SO WITH THAT BEING SAID, I'M GOING TO TURN IT OVER TO SCOTT FIRST.

>> THANK YOU FOR ALLOWING US TO COME VISIT WITH YOU. AND I THOUGHT THAT IT WOULD BE IMPORTANT AS A STARTING POINT -- MAYBE TO UNDERSTAND WHO WE ARE AND WHERE WE ARE COMING FROM -- IF THIS WAS MY COMMITTEE, AND IT IS BECAUSE I'M FROM TEXAS, I WOULD WANT TO KNOW WHAT'S GOING ON. MY NAME IS SCOTT FINFER. I HAVE BEEN DEVELOPING LAND. FOR ABOUT

[00:50:01]

ONE OF THE THINGS THAT'S MY DEFINING MEMORY OF PLAYING FOOTBALL -- IT WAS SOMETHING THEY SAID TO US, WHICH WAS YOU DON'T GET TO PUT YOUR NAME ON THE JERSEY BECAUSE IT IS THE COMMUNITIES. IT IS NOT YOURS. IT WAS ALWAYS ABOUT THE TEAM FIRST. AND WHAT THE IMPACT IS FOR THE COMMUNITY. I HAVE TAKEN THAT APPROACH TOWARDS DEVELOPING. I HAVE UP ON THE SLIDE RIGHT NOW, THE IDEA OF TEXAS IS A STATE OF MIND. IT MAKES ME THINK ABOUT A NEIGHBORHOOD THAT WE SOLD TO SOME GUYS OUT OF CALIFORNIA THAT CAME IN OUR BUILDING HOUSES THERE. AND WE DROVE BY, AND A COUPLE MONTHS AFTER WE SOLD, WE SAW SOME BEAUTIFUL HOUSES GOING UP AND HAVING US, BUT THE FLAG OF TEXAS WAS FLYING UPSIDE DOWN. WITH THE WHITE DOWN AND THE RED UP. I PULLED OVER AND TOLD THE GUYS AT THE SALES OFFICE, THE FLAG IS WRONG. THEY ARE LIKE, WHAT'S WRONG WITH THE FLY? I SAID THE RED SIDE IS SUPPOSED TO BE DONE. IN MY POINT THERE IS THAT THINGS LIKE THAT MEAN SOMETHING TO SOME PEOPLE AND DON'T MEAN SOMETHING TO OTHER PEOPLE. AND SO WHEN WE GO INTO A COMMUNITY, THE PERSON THAT WE ARE DOING, AND THE REASON THAT WE ARE HERE TONIGHT I MISSED INTRODUCE OURSELVES, WHO WE ARE, AND WHAT WE WANT TO DO, AND WHY WE WANT TO BE HERE. SO MY FAMILY GOT HERE ABOUT 150 YEARS AGO. MY WIFE DIDN'T COME TO -- UNTIL SHE WAS 20. I'LL TELL YOU A FUNNY STORY ABOUT AROUND IN TEXAS WITH HER. AS YOU ARE BUYING LAND AND DEBITING US, IT IS VERY MUCH A PEOPLE BUSINESS POINT YOU SPEND A LOT OF TIME OUT IN THE FIELD.

OVER THE WEEKENDS, I TAKE MY WIFE TO DRIVE TO SEE WHAT'S GOING ON WITH EVERYBODY ELSE. WE HAVEN'T BEEN IN TEXAS FOR 90 DAYS. WE ARE DRIVING AROUND. WE ARE SITTING -- LIVING IN SAN ANTONIO. HAD YOU KNOW ALL THESE PEOPLE? I SAID, I DON'T. WHY

ARE YOU WAVING AT THEM? >> TO WISH THEM A GOOD DAY.

THINGS ARE DIFFERENT HERE THAN THEY ARE OTHER PLACES IN THE WORLD. AND WHAT SHE SAYS IS, WHEN PEOPLE ASK HER WHERE SHE'S FROM, SHE SAYS, I'M NOT FROM TEXAS, BUT I GOT HERE AS QUICKLY AS I COULD. THAT REPRESENTS ANYTHING ABOUT TEXAS. WHEN I PARTNERED UP WITH RAVI ON A DEAL, IT WAS TO HELP THEM WITH A DEAL IN SHERMAN, TEXAS. WE REALLY HAD A LIKENESS OF MIND IN TERMS OF WHAT IS IMPORTANT AND HOW YOU DO THINGS. SO, WHEN YOU THINK ABOUT RAVI'S MODEL, WE ARE LOOKING FOR TRANSPARENCY. WE WANT TO WORK WITH THE CITY. WE WANT THE CITY TO UNDERSTAND WHAT OUR IDEAS ARE, AND WE OUGHT TO TRY TO ACCOMMODATE AND MAKE IT BETTER. THE REALITY IS, THAT I'M SPEAKING COMPLETELY CANDIDLY AND BLUNTLY. IF WE WANT TO GET A M.U.D., WE COULD GET A M.U.D.. YOU GUYS COULDN'T STOP US, BUT THAT'S NOT OUR STYLE. WE DON'T WANT TO FIGHT. BUT WE HAVE AN IDEA, ENTER IDEA GOES BACK TO WHAT'S GOING ON HERE. WON TOLD TOLD ME, HEY, I NEED YOU TO GO DOWN AND TAKE A LOOK AT WHAT WE ARE DOING IN VICTORIA, KEPT TELLING HIM, I DON'T THINK SO. HE SAID, WHY? IT DIDN'T MAKE SENSE TO ME. I CAN GET MY HEAD WRAPPED AROUND WHAT HE WAS LOOKING AT. I'M NOT SURE HE HAD HIS HEAD WRAPPED AROUND IT.

HE SAW IT AS A PRETTY GOOD OPPORTUNITY. AFTER SOMETIME, WHAT I CAME TO REALIZE WAS THAT THERE WAS SOMETHING SPECIAL AND UNIQUE HERE IN VICTORIA. IT STARTS OFF WITH, WHAT ARE WE DOING HERE? WELL, VICTORIA USED TO BE THE CROSSROADS OF TEXAS.

BACK IN THE EARLY DAYS OF THE STATE, EVERYTHING THAT WAS GOING ON IN THE STATE WAS HAPPENING DOWN HERE. THE WAR WAS FOUGHT ON HERE BUT AS FAR NORTH AS YOU GO, THERE WAS AN ATTORNEY. YOU COULDN'T GO PAST THAT BECAUSE IT WOULD BE INDIAN TERRITORY. AUSTIN WAS NOT MUCH OF A CITY BACK IN THOSE DAYS.

EVERY THING WAS AROUND VICTORIA. IF WE FAST FORWARD TO TODAY, WHAT WE HAVE IS A STRANGE ANOMALY OF THE CITY. I DON'T MEAN THAT IN A NEGATIVE WAY. IT IS A POSITIVE WAY. BUT YOUR CITY SIZE DOES NOT MAKE SENSE WITH WHAT HAS HAPPENED OVER TIME. AND I HAVE A THEORY OF THAT. IT IS BECAUSE OF THE

[00:55:01]

LOOKING AT VICTORIA, I CAN GET MY HEAD AROUND WHAT WE ARE GOING TO DO. THE HISTORY OF THE CITY GOING BACK TO 1984, THAT IS AMAZING. THERE IS HISTORY HERE. THERE ARE OLD BUILDINGS ARE. THERE ARE STORIES HERE. THAT'S ALL GREAT STUFF, BUT IT'S ALSO INTERESTING TO LOOK AT HOW AFFORDABLE VICTORIA ACTUALLY IS. THE COST OF LIVING HERE IS CONSIDERABLY LESS THAN THE REST OF TEXAS AND IT IS LESS THAN THE COUNTRY AS A WHOLE. AS WE START LOOKING AT OUR M.U.D. AND WHAT WE ARE GOING TO CREATE, WHAT I REALIZED WAS VICTORIA HAS EVERYTHING AND ANYTHING YOU COULD WANT IF YOU ARE DEVELOPING MASTER-PLANNED COMMUNITY FEELING TOWARDS PEOPLE THAT ARE READY TO RETIRE AND GO INTO THE NEXT PHASE OF THEIR LIFE SOMEPLACE DIFFERENT THAN WHERE THEY ARE AT. WHAT I MEAN BY THAT? IF YOU LOOK AT VICTORIA, HAVE A COUPLE OF HOSPITALS. SOME GOOD ONES. PLUS, YOU ARE LESS THAN AN HOUR FROM MAJOR MEDICAL FACILITIES THAT HAVE EVERYTHING FROM THE BEST CANCER TREATMENT IN THE COUNTRY TO, YOU KNOW, TRAUMA CARE. YOU HAVE BEACH 30 MINUTES AWAY. OUR BELIEF IS THAT THERE IS AN OPPORTUNITY TO CREATE A MASTER PLAN RETIREMENT COMMUNITY THAT WOULD BE BUILT UP BY ONE OF THE NATIONAL PLAYERS. THAT MIGHT BE TAYLOR MORRISON OR ANY NUMBER OF THE PUBLIC HOMEBUILDERS THAT BUILT SPECIFICALLY HIGHLY AMENDED TASTE TARGETED RETIREMENT COMMUNITIES. AND WHEN WE LOOK AT THE VALUES AND THE PRICES OF WHAT IT COSTS TO LIVE IN VICTORIA, WHAT WE ARE REALLY SAYING IS -- THAT'S THE WRONG WAY. THERE IS AN OPPORTUNITY TO TAKE EVERYTHING THAT EXISTS IN VICTORIA AND CHANGE THE DIALOGUE WITH WHAT WE ARE DOING. OUR BELIEF IS THAT WHEN PEOPLE SEE THAT THEY COULD LIVE IN AN AMENDED TASTE COMMUNITY WITH MULTIPLE GOLF COURSES AND ALL THE THINGS THAT VICTORIA HAS TO OFFER, AND A RETIREMENT SETTING, THIS IS GOING TO BECOME VERY APPEALING. CLOSE TO THE COAST, FANTASTIC WEATHER. ESTABLISH COMMUNITY. AND FROM A COST PERSPECTIVE, IF WE ARE SELLING HOMES, THAT ARE THREE TO $400,000, TARGETING RETIREES, THAT IS GOING TO CREATE A MASSIVE ARBITRAGE OF WEALTH. WE ARE SEEING IT HAPPEN IN GEORGETOWN. WE HAVE SEEN IT HAPPEN IN OTHER PARTS OF THE COUNTRY. EFFECTIVELY, ALEKSA MATIC THIS. IF WE APPEAL TO SOMEBODY THAT IS NOT FROM HERE, TO COME AND MOVE BOTH THEIR FAMILY AND FORTUNE TO VICTORIA TO RETIRE, IF I'M LIVING IN ILLINOIS, OR IF I'M LIVING IN NEW YORK, OR IF I'M LIVING IN CALIFORNIA, OR ANY NUMBER OF OTHER CITIES, THERE IS A MASSIVE ARBITRAGE THAT HAPPENS WHEN I SELL MY HOUSE WHICH IS HALF THE SIZE OF WHAT I'M ABLE TO BUY HERE, AND I CAN EXIT ILLINOIS, THE SUBURBS OF CHICAGO FOR $200. I COME TO VICTORIA, TEXAS. I BUY MY RETIREMENT HOME FOR THREE OR $400,000. IT HAS ALL THE AMENITIES. I'M ABLE TO POCKET ALL OF THAT EQUITY THAT COMES OUT OF MY HOUSE, AND NOW, I CAN HAVE A WEEKEND IN SAN ANTONIO FOR LATIN CULTURE. I CAN GO TO THE BIG CITY OF HOUSTON. I CAN GO SEE LIVE MUSIC IN AUSTIN. IT IS A DAY DRIVE OR A WEEKEND TRIP. I LIVE IN THE MIDDLE OF A REALLY TRADITIONAL, TYPICAL TEXAS CITY, LIKE WHAT I GREW UP WITH. IT HAS THE ABILITY TO GO FORWARD. IT SHOULD ATTRACT A TREMENDOUS AMOUNT OF WEALTH TO YOUR CITY THAT OTHERWISE WOULDN'T HAVE ANY RECENT TO COME TO VICTORIA. THAT SIMPLY IS THE REASON WHY WE ARE ATTRACTED AND WANT TO BUILD IN THIS DISTRICT, BECAUSE WE THINK WE CAN DO SOMETHING IN TERMS OF DESIGN AND DEVELOPMENT THAT WILL BE A STATE-OF-THE-ART FACILITY. A SIMPLE EXAMPLE IS ONE OF THE CONCEPTS OR IDEAS WE HAVE FOR OUR RETIREMENT COMMUNITY. MUCH LIKE THEY HAVE IN AUSTIN AND OTHER PLACES. YOU PAY AND HOA WHEN YOU'RE DOING A RETIREMENT COMMUNITY. PART OF WHAT WE WANT TO PLAN EVER WITH OUR RETIREMENT COMMUNITY ARE THINGS LIKE HIGHLY AMENDED SIZED SWIMMING POOLS, CLUB. AMENITIES WITH PARKS AND OMITTING US, BUT ALSO COME OTHER THINGS. HOW ABOUT A COMMUNITY DOCTOR? SO AS PART OF OUR HOA, WE WILL HIRE A PRIMARY CARE DOCTOR THAT IS ABLE TO PROVIDE BASIC SERVICES TO ALL THE RESIDENTS AND AS YOU ARE AGING, IT IS NICE TO HAVE A DOCTOR VERY CLOSE AT HAND THAT CAN SERVICE YOU. THE MODEL WORKS BECAUSE WE ARE ABLE TO PAY A DOCTOR A HIGHER FEE THAN

[01:00:03]

>> THAT'S GREAT INFORMATION. THANK YOU. APPRECIATE IT.

YOU'RE TELLING US WHAT WE HAVE BEEN TRYING TO TELL OTHER

PEOPLE. >> THAT'S RIGHT. AND ULTIMATELY, WE CAN COORDINATE TOGETHER. IF YOU HAVE AN ECONOMIC DEVELOPMENT TEAM, ONE OF THE THINGS THAT'S ON MY MIND, AND AGAIN, IT IS PART OF THE THINGS IS YOU HAVE AN AIRPORT. YOU MAY OR MAY NOT REALIZE HOW AMAZINGLY IMPORTANT KEEPING THAT AIRPORT HAS BEEN OR IS FOR YOUR COMMUNITY. AND THE REASON IS VERY SIMPLE. I CAN LIVE HERE, AND AS LONG AS I KNOW I CAN GO TO THE AIRPORT IN 20 MINUTES OR 30 MINUTES, I'M IN HOUSTON. I CAN BE ANYWHERE IN THE WORLD, IT IS BETTER THAN HAVING DFW HERE. WITHOUT THAT AIRPORT, IT BECOMES PROBLEMATIC AND CHALLENGING.

BIG CHALLENGE. IT TAKES AN HOUR AND A HALF, AND THEN PARKING AT ALL THIS STUFF. I COULD SPEND HOURS TELLING YOU HOW INAUDIBLE ] IT WAS IN VICTORIA. RAVI HAS MADE. I PROVIDE SERVICES FOR RAVI'S DEVELOPING COMPANY. THE IDEA IS LETTING A FIRE AND KINDLING SOMETHING THAT PEOPLE DIDN'T SEE BEFORE AND BUILDING IT INTO SOMETHING GREAT. I HAVE A TRACK RECORD.

RAVI HAS A TRACK RECORD. WE WANT TO ANSWER QUESTIONS FOR YOU. AND I'LL LEAVE YOU WITH THE ADVICE THAT I WAS GIVEN .

WE WENT DOWN TO GREEN, TEXAS, TRYING TO MAKE A DEAL WITH THE CITY TO DO DEVELOPMENT WORK IN THE MIDDLE OF GREEN, AND THEY SAID, THE DIFFERENCE BETWEEN BEING COMMITTED AND INVOLVED IS LIKE THE CHICKEN AND THE PIG AT BREAKFAST. THE CHICKEN IS INVOLVED IN BREAKFAST, BUT THE PIG IS COMMITTED. WE ARE HERE TO BE COMMITTED.

QUESTIONS. >> AND THEY HAVE A FEW MORE

SLIDES, TOO. >> THE OTHER DEVELOPMENTS YOU'VE BEEN INVOLVED IN, IS IT PRIMARILY OR EXCLUSIVELY

RETIREMENT COMMUNITIES? >> NO. IT'S NOT. MY BACKGROUND IS IN MASTER-PLANNED DEVELOPMENT, SO AS AN EXAMPLE, WE BOUGHT THE V.A.R. 50 ACRES IN THE CENTER OF SAN ANTONIO, TEXAS. WE PARTNERED WITH THE CITY TO BRING UP PARK -- BUILD A PARK. ADJACENT TO US IS A 300 ACRE CITY PARK. RAVI AND I FINISHED UP ON A DEAL. IT IS NOT FINALIZED YET, BUT I'M COMFORTABLE ENOUGH TO TALK ABOUT IT, THAT WE PUT TOGETHER A NEIGHBORHOOD FOR 1101 HOUSES ACROSS THE STREET FROM THE NEW TEXAS INSTRUMENTS PLANT IN SHERMAN. AND NOW, WE ARE PARTNERING WITH HILLWOOD TO SELL THEM CONTROL OF THAT NEIGHBORHOOD, AND THEY WILL BUILD OUT. THEY WILL BUILD IT OUT AND TAKE IT ALL THE WAY THROUGH THE FINAL STAGES. WE WILL FOCUS ON THE COMMERCIAL PIECE ADJACENT TO IT. YOU KNOW, I HAVE DEVELOPED 10,000 RESIDENTIAL LOTS IN MY CAREER.

BOTH THROUGH ACQUISITION DEVELOPMENT AND REPURPOSING OF WHAT IS GOING ON. AND THE RETIREMENT IS SOMETHING THAT WE ARE ACTIVELY INVOLVED WITH. BUT I TOLD RAVI, WHEN HE SHOWED ME THIS -- I'M BEING QUITE CANDID WITH YOU, HE SAID, I'M NOT DEVELOPING ANY BREAD IN VICTORIA. THAT IS AND SAY IT -- INCENT. I SAID, IT WON'T DRIVE THE VOLUME OF TRAFFIC THAT NEEDS TO MAKE THAT TYPE OF DEAL WORK. BUT RETIREMENT WILL.

[01:05:04]

THEY WILL HAVE LOCAL SUBS AND LOCAL SUPPLIERS AND BUILT THE THING OUT OF VICTORIA, SO IT'S GOING TO BE AN ECONOMIC BOOM FOR THE COMMUNITY, AND THEN IF YOU GET 650 NEW RETIRED FAMILIES LIVING HERE, WITH POCKETS FULL OF MONEY, IT IS JUST GOING TO IMPACT EVERYTHING IN TOWN, FROM THE DOWNTOWN DISTRICT THAT YOU ARE WANTING TO WORK ON EDITING US, THAT IS A DRIVER TOWARD DOWNTOWN. THOSE PEOPLE ARE THE PEOPLE THAT HAVE DISPOSABLE INCOME AT A TIME ON THEIR HANDS AND THEY ARE GOING TO WONDER DOWNTOWN AND THEY ARE GOING TO GO TO A POTTERY SHOP OR INVEST IN A.-- DONUT SHOP OR COOKIE SHOP AND SPIT -- SPENT MONEY THERE. WHATEVER IT IS. WE HOPE YOU GUYS WILL PARTNER WITH

US. >> THAT IS GOING TO BE THE HEADLINE TOMORROW, BY THE WAY. A POCKET FULL OF MONEY.

>> THE DETAILS ARE EXPENSE WITH CREATING M.U.D.S?

>> I'M GOING TO GO THROUGH THAT.

>> OKAY. >> THANK YOU FOR YOUR COMMENTS.

YOUR PASSION CLEARLY SHOWS THROUGH. THANK YOU VERY MUCH.

>> THANK YOU. >> NOW THAT WE HAVE TALKED THROUGH WHITE VICTORIA IS IMPORTANT FOR THIS PROJECT, I'M GOING TO ZOOM IN ONE LEVEL DOWN, AND TALK ABOUT OUR SITE SPECIFICALLY. SO OUR SITE IS 157 ACRES ON THE NORTH SIDE OF TOWN. AS IT WAS MENTIONED EARLIER, WE ARE IN THE ETJ, A COUPLE OF BLOCKS OUTSIDE OF CITY LIMITS. AND SO, WE ARE LOOKING TO DEVELOP SINGLE-FAMILY RESIDENTIAL. THIS IS A COUPLE SHOTS OF THE SITE AS IT STANDS TODAY.

>> JUST TO VERBALIZE IT, THAT'S ON NORTHSIDE ROAD.

>> YES. SO THE HOMESTEAD ACRES ARE RIGHT OVER THERE, AS WELL.

SO NORTHSIDE ROAD AND PARSONS ROAD HERE IN THE ARIAL, AS WELL, YOU CAN SEE THE TRACT IS LARGELY UNDEVELOPED. THERE IS AN EXISTING STRUCTURE, AND THESE ARE A COUPLE OF SHOTS FROM THE GROUND. WHAT WE ARE LOOKING TO DO IS DEVELOP 157 ACRES OF SINGLE-FAMILY RESIDENTIAL SUBDIVISION. THIS COMMUNITY, AS SCOTT MENTIONED, THE GOAL IS TO BE HIGHLY EMINENT SIZED, AND YOU WILL SEE THE CONCEPT PLAN ON THE NEXT SLIDE, AS WELL. THERE WILL BE AMENITY LAKES IN THE CENTER OF THE COMMUNITY. THERE'S GOING TO BE AN AMENITY CENTER, A TRAIL SYSTEM . IT IS GOING TO OFFER A VARIETY OF LOT SIZES.

THAT, AS YOU CAN SEE ON THIS SLIDE, THEY MEET OR EXCEED THE CITY OF VICTORIA'S CURRENT REQUIREMENTS ON LOT WITH. THIS SLIDE, YOU WILL SEE THE AMENITY LEAKS ARE CENTRAL TO THE DEVELOPMENT. IT IS THERE IN RED, AND THEN THERE'S GREEN SPACE THROUGHOUT THE COMMUNITY. THERE'S A COUPLE OF VERSIONS OF THE CONCEPT PLAN, SO YOU WILL SEE -- THIS IS THE MORE ENGINEERED PLAN, WHICH SHOWS THE HOUSE PADS, BUT THE ONE ON THIS SITE IS WHERE YOU CAN SEE THE GREEN SPACES MORE CLEARLY.

SO FUTURE OF THE COMMUNITY IS GOING TO BE THE GREEN SPACE.

POCKET PARKS THROUGHOUT. EACH WILL VARY BASED ON WHERE THEY ARE ON THE LAND PLAN, BUT THIS WOULD INCLUDE SIMPLE SHADE STRUCTURES, ENHANCED PLANTING, AND SOME SHADE TREES. THE AMENITY CENTER. THEY ARE ACTUALLY SHOWING YOU UP AT THE TOP, SOME RENDERINGS FROM THE DEVELOPERS ONGOING OTHER PROJECT. ALL THESE IMAGES ON THE FOLLOWING SITE, SOME OF THEM ARE ILLUSTRATIVE IN NATURE, BUT WE PULLED FROM OTHER PROJECTS TO SHOW YOU. IT WILL ENCODE THE POOL, A SMALL SPLASH PAD, ESSENTIAL IN THE TEXAS HEAT, YARD GAMES. SHADE TREES. PRACTICE FIELDS, AND OPEN PLAY. FIELDS. THERE WE GO.

AND HERE AGAIN, SOME SAMPLE IMAGES OVERLOOKING THE WATERWAY. WE GOT THAT PICKLEBALL ON THERE. THESE ARE

[01:10:07]

>> MY NAME IS MINDY KOEHNE. MY FIRM REPRESENTS AROUND I WOULD GUESS 1000 SPECIAL-PURPOSE DISTRICTS. I HAVE BEEN IN THE SPECIAL-PURPOSE DISTRICT BUSINESS FOR 18 YEARS, AND THAT IS MY ONLY PRACTICE. I TOLD MY FRIENDS, IF YOU NEED A DIVORCE, DO NOT CALL ME. I ONLY DO SPECIAL-PURPOSE DISTRICT WORK.

SO YOUR LEGAL TEAM AND CONSULTANT HAVE DONE A GREAT JOB OF GIVING A VERY BROAD OVERVIEW. THIS IS A NEAT PRACTICE. I CAN TELL BY LISTENING TO THEM THAT THEY SPENT A GOOD DEAL OF TIME RESEARCHING DISTRICTS AND HOW

[01:15:03]

>> I HAVE A QUESTION ABOUT THE BONDS.

>> SORRY? >> ABOUT THE BONDS. IF WE AUTHORIZE YOU TO DO THE BONDS, THE CITY IS NOT LIABLE?

>> CORRECT. >> HOW ARE THEY FINANCED? ON THE LAND? IF YOU DEFAULT , WHAT IS YOUR ASSET?

>> THE WAY THAT THEY WORK, THERE IS A TAX INSIDE THE DISTRICT. M.U.D.S ARE HEAVILY REGULATED. THE WAY THAT M.U.D.S WORK IS THE M.U.D. LEVIES THIS TAX, AND THE TAX GETS LEAVITT RIGHT BEFORE HOMES ARE BUILT. AND SO AS THE HOMES GET BUILT, THAT IS WHAT CREATES TAXABLE VALUE. AS HOMES ARE BUILT, THEY ARE TAXED. THE WAY THAT M.U.D.S WORK IS THE M.U.D.S HAS TO BE SELF-FULFILLING IN THAT THE ATTORNEY GENERAL'S OFFICE DOES NOT LET THE M.U.D. ISSUE ANY BONDS UNTIL IT HAS ENOUGH TAX REVENUE TO SUPPORT THE ISSUANCE, LIKE A CITY DOES. THE COMMISSION ON ENVIRONMENTAL QUALITY HAVE EXTENSIVE FEASIBILITY RULES, AND SO THEY WILL NOT ALLOW M.U.D. TO SELL ANY BONDS UNTIL THERE IS ENOUGH TAXABLE VALUE INSIDE THE BOUNDARIES OF THE DISTRICT TO PAY THE DEBT SERVICE ON THOSE BONDS. THE ONLY ENTITY THAT IS LIABLE FOR THE SERVICE PAYMENTS ARE THE HOMEOWNERS INSIDE THE BOUNDARIES OF THE DISTRICT, BUT AGAIN, UNTIL THE TAXABLE VALUE INSIDE THE DISTRICT IS HIGH ENOUGH TO SUPPORT THE DEBT ISSUANCE, THE ATTORNEY GENERAL'S OFFICE WILL NOT ALLOW THEM TO SELL BONDS. WE HAVE TO BE ABLE TO AFFORD OUR PAYMENTS.

>> THIS IS NOT A -- M.U.D. PAYMENT. YOU TALKED ABOUT A WATER LINE AND SEWER LINE. WHAT ARE THE CONSEQUENCES -- YOU WOULD PAY FOR THE WATER LINE IN THE SEWER LINE, I WOULD ASSUME? BUT YOU ARE ADDING TO THE SEWAGE OF THE CITY AND YOU ARE ADDING TO THE WATER IN THE CITY, AND WHO IS GOING TO PAY FOR THE UPKEEP OF THE LINES, AND WOULD WE HAVE TO INCREASE -- YOU ARE ON THE NORTH SIDE OF THE WATER PLAN, I THINK. I MEAN, THERE'S CONSULTATIONS THERE. THOSE STUDIES HAVE BEEN

DONE. >> SO, THOSE STUDIES ARE GOING TO BE DONE, AND THE WAY THAT DISTRICTS WORK IS DISTRICTS ARE SELF-SUPPORTING. ANY FACILITIES THAT HAVE TO BE UPGRADED FROM THE CITY SYSTEM, WHETHER WE HAVE TO TEAROUT WATERLINES TO PUT IN THE 16 INCH LINE OR ANY OF THOSE FACILITIES, THE DEVELOPER HAS TO PUT IN ALL OF THOSE FACILITIES. THE DEVELOPER HAS TO UPGRADE ALL OF THE CITY SYSTEMS TO MAKE SURE THAT THE CITY IS EQUIPPED TO PROVIDE THE SERVICE TO THE DISTRICT, AND IT IS THE DEVELOPER'S RESPONSIBILITY TO MAKE ALL OF THOSE IMPROVEMENTS, AND SO THE WAY THAT THE DISTRICT ALSO WORKS IS DISTRICTS ARE ABLE TO FINANCE INFRASTRUCTURE LIKE WATER SEWER, DRAINAGE ROADS, INTERNET INDUSTRY FOR OVER TO THE CITY, SO THE CITY CAN BE THE RETAIL PROVIDER, AND SO

[01:20:01]

>> THERE WOULD BE A DRAINAGE STUDY, TOO.

>> THERE WOULD BE DRAINAGE STUDIES, WATER STUDIES, ALL THE

STUDIES. >> IS THERE STILL PROCESS THROUGH TCQ? I ASSUME YOU STILL HAVE TO GO THROUGH TCQ AND IT WOULD NOT BE A CONTESTANT IN A MATTER -- CONTESTED MATTER.

>> IT IS A DIFFERENT PROCESS. AND YOU HAVE CITY CONSENT, IT IS HEAVILY REGULATED. THERE IS AN EXTENSIVE REPORT THAT HAS TO BE COMPLETED. THERE IS A MARKET SURVEY THAT HAS TO BE COMPLETED THAT SHOWS THERE IS A MARKET FOR THE PRODUCT THAT WE ARE SUGGESTING THAT GETS SOLD HERE. AND THAT ALL OF THAT GETS SUBMITTED TO THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND THEIR REVIEW TAKES 6 TO 9 MONTHS. IF WE DON'T HAVE THE CITY'S CONSENT, IT IS A EXPENSIVE PROCESS AND INSTEAD OF IT TAKING 6 TO 9 MONTHS, IT IS MORE LIKE 18 TO 24 MONTHS.

>> WHAT IS THE TYPICAL GOVERNANCE STRUCTURE OF M.U.D.?

>> IN THE EARLY DAYS OF THE M.U.D., THEY ARE RUN MUCH LIKE A CITY OR SCHOOLBOARD OR HOA BOARD. THERE IS A BOARD OF DIRECTORS AND THERE ARE FIVE MEMBERS OF THAT BOARD BECAUSE THERE ARE NO RESIDENTS INSIDE THE BOUNDARIES OF THE BOARD, SORRY, THE DISTRICT, THE DEVELOPER LOCATES FRIENDS AND LOCAL PEOPLE HERE IN VICTORIA THAT SERVE ON THE BOARD OF DIRECTORS UNTIL THERE ARE RESIDENTS THAT SERVE ON IT.

THERE ARE RESIDENTS THAT SERVE THE RESIDENTS AND THEY BECOME

THE BOARD MEMBERS. >> THAT'S WHAT I ASSUMED. I

JUST WANTED TO DOUBLE CHECK. >> I APOLOGIZE. I'M CONFUSED NOW. I CAME INTO THIS THINKING THAT YOU WANTED TO CREATE THE M.U.D. TO PROVIDE WATER AND DRAINAGE. BUT YOU ARE TALKING ABOUT THE CITY WATERLINES. SO, THE WATER COMES FROM THE CITY.

THE M.U.D. BUYS THE WATER FROM THE CITY, AND THEN RESELLS IT, I GUESS. I'M JUST THINKING OUT LOUD. I'M TRYING TO FIGURE OUT, I UNDERSTAND THAT WE NEED THE BONDS TO CREATE THE INFRASTRUCTURE. BUT WHAT IS IT THAT IT IS GOING TO PROVIDE? IN THE SECOND PART IS, YOU HAVE TO HAVE ENOUGH TAXABLE VALUE BEFORE YOU CAN ISSUE THE BOND, BUT IT IS KIND OF THE CHICKEN

AND THE EGG THING. >> EXACTLY. IT IS THE CHICKEN AND THE EGG THING. THE BONDS ARE USED TO REIMBURSE THE DEVELOPER FOR THE WATER, THE SEWER, THE DRAINAGE FACILITIES THEMSELVES. THE FACILITIES GET PUT IN BY THE DEVELOPER. THE DEVELOPER SELLS LOTS. THE HOUSES ARE BUILT. TAXABLE VALUE IS CREATED. REVENUE STARTS TO COME INTO THE DISTRICT, AND THEN ONCE THAT REVENUE IS IN, THEN THE DISTRICT SELLS THE BONDS TO REIMBURSE THE DEVELOPER, AND YOU ARE ABSOLUTELY RIGHT. IT IS THE DEVELOPER'S RISK. IT COULD BE THE CASE. IT HASN'T BEEN IN MY 18 YEARS, THANK GOODNESS, BUT IT COULD BE THE CASE THAT THE DEVELOPER PUTS IN WATER, SEWER, DRAINAGE, AND ROOTS. TAXES ARE LEVIED INSIDE THE BOUNDARIES OF THE DISTRICT, BUT EVEN IF THE TAXES HAVE NOT YET BEEN LEVIED, IT COULD BE THE CASE THAT NO ONE BUYS HOUSES. THERE IS A RECESSION. THAT IS A RISK FOR THE DEVELOPMENT TEAM. IT'S NOT A RISK FOR THE CITY. IT'S ONEROUS FOR ANYONE THAT BUYS HOMES IN THE DISTRICT. IT IS A RISK THAT THE DEVELOPER WILL HAVE TO WAIT A NUMBER OF YEARS TO GET REIMBURSED FOR THE

FACILITIES HE PAID TO PUT IN. >> THANK YOU.

>> MY QUESTION IS, IF FOR WHATEVER REASON THE DEVELOPERS DECIDED TO DEVELOP THE PROCESS , WHAT HAPPENS TO THE M.U.D.? IS IT SOMETHING IF THE DEVELOPER DECIDED TO SELL THAT PROPERTY, DOES THE M.U.D. TRANSFER? TO THE NEW OWNERS? WHAT HAPPENS? AND THAT KIND OF SCENARIO.

>> YEAH. THE M.U.D. IS IN A SITE-SPECIFIC LOCATION. IT WILL CONTINUE TO EXIST LIKE IF WE WERE ABLE TO CREATE THE M.U.D.

AND ENTER INTO A DEVELOPMENT AGREEMENT AND SOMETHING HAPPENS TO THE DEVELOPMENT TEAM, THEN SOMEONE COULD BUY THE PROPERTY AND ASSIGN THE RIGHTS AND THE DEVELOPMENT AGREEMENT.

>> AND IF IT WERE TO SIT THERE AND, THIS BEING AN EIGHT, WE ANNEXED , WHAT DOES THAT DO? WITH THE M.U.D. EXISTING?

>> RIGHT NOW, >> I DON'T MEAN -- I DON'T MEAN ONCE THIS IS DEVELOPED. IF YOU WERE TO ABANDON IT AND IT TRANSFERRED AND NOBODY HAD DONE ANYTHING WITH THE PROPERTY,

>> WILL, RIGHT NOW, THERE IS NO WAY TO ANNEX THE PROPERTY

[01:25:04]

>> LET'S ASSUME -- RIGHT -- SINCE WE ARE JUST TALKING ABOUT SCENARIOS, THAT IT TAKES A WHILE, OR SOMETHING FOR THE DEVELOPMENT TO HAVE BEEN. MY UNDERSTANDING IS IF WE CHOOSE TO EXERCISE THE OPTION TO SOMEHOW ANNEX, THAT MEANS WE WOULD BE RESPONSIBLE FOR THE REMAINING PAYMENTS OF THAT

BOND. CORRECT? >> RIGHT. SO TYPICALLY, NO CITY WOULD ANNEX THE PROPERTY UNTIL AFTER THE DEBT SERVICE IS LOW ENOUGH THAT THEY WOULD WANT TO ISSUE ITS OWN BONDS TO PAY OFF THE DISTRICTS. IT DOES, AS A MATTER OF LAW, DISSOLVE THE DISTRICT, BUT WE NEED TO SELL THE DISTRICT, YOU ALSO TAKE ON ANY DEBT IT HAS. IF IT HAS ISSUE BONDS, YOU WOULD HAVE TO TAKE ON THAT DEBT. SO WE, IN THE DEVELOPMENT AGREEMENT, IF WE ARE ABLE TO COME TO AN AGREEMENT, THEN TYPICALLY WHAT WE DO WITH CITIES AS WE GIVE THEM THE OPTION BUT NOT THE OBLIGATION TO ANNEX THE ENTIRETY OF THE DISTRICT. ONCE THEY DEEM THAT THEY ARE READY TO DO SO, AND SO, AS AN EXAMPLE, SAY THAT THE DISTRICT STARTS OUT LEVYING A TEXT, AND WE WILL CALL IT $.80, AND AFTER A NUMBER OF YEARS, ALL OF THE DEBT HAS BEEN ISSUED, THEN WE START TO LOWER THAT TAX RATE BECAUSE THE DEBT IS BEING PAID OFF. IF THE CITY HAS THE TAX RATE -- WE WILL CALL IT $.50 FOR EVEN NUMBERS -- OF THE CITY HAS THE TAX RATE OF $.50 AND THE DISTRICTS TAX RATE HAS GONE DOWN TO $.25, THE CITY AND ITS FINANCIAL TEAM WILL COME TO THE CONCLUSION THAT IT IS A GOOD IDEA, TO GO AHEAD AND ANNEX ALL OF THE DISTRICT AND PAY OFF ITS DEBT BECAUSE THE CITY TAX RATE IS WHERE IT MAKES FINANCIAL SENSE. AND AGAIN, IT IS AN

OPTION AND NOT AN OBLIGATION. >> TYPICALLY, THEY WOULD NOT ENTERTAINING -- ENTERTAINMENT UNTIL IT IS PAID OFF.

>> WHAT IS THE LONGEVITY OF A TYPICAL BOND?

>> 25 YEARS. THIS IS NOT A SHORT-TERM ANNEXATION. IT IS AN ANNEXATION 40 YEARS FROM NOW. MAYBE SOONER DEPENDING ON HOW AGGRESSIVE THE HOMEOWNERS ARE WITH THE RING THAT TAX RATE.

KEEP IN MIND, DISTRICTS LEVY TAXES JUST LIKE CITIES DO. IT IS THE RESIDENTS WHO MAKE THE DECISION ABOUT WHAT IT WILL BE WITHIN THE BOUNDARIES OF THE DISTRICT. THE RESIDENCE, OF COURSE, KNOW THAT THEY HAVE OBLIGATIONS TO REIMBURSE THE DEVELOPER FOR THE INFRASTRUCTURE, BUT AFTER THE DEVELOPER HAS BEEN REIMBURSED AS SOON AS THEY ARE ABLE, LET ME SHOW YOU COME I HAVE A LOT OF THOSE DISTRICTS, THEY ARE LOWERING THE TAX RATE AS SOON AS POSSIBLE. THEY WILL START TO LOWER IT. TYPICALLY, IT IS BY 2 TO 3 PENNIES PER YEAR, LIKE A CITY DOES, BUT EVENTUALLY, THAT TAX RATE DOES IN FACT GET

LOWERED. >> IF WE VOTE FOR THIS, WE ARE GIVING YOU -- WE ARE MAKING IT ABLE FOR YOU TO DO M.U.D..

>> YES. >> READINGS THAT IS BEFORE THE

MUD? -- M.U.D. >> IF THEY DECIDE THEY DON'T WANT TO BE IN THE WATER BUSINESS FOR THE DISTRICT, THIS MOD WILL GIVE THE DISTRICT THIS PROPERTY THE DEVELOP -- ABILITY TO DEVELOP, NO MATTER THE SOLUTION. THIS PROPERTY WILL NEED A DISTRICT ONE DAY AND IT WILL INCREASE THE VALUE OF THAT PROPERTY, SO, OUR HOPE WOULD BE TO ENTER INTO A DEVELOPMENT AGREEMENT WITH THE CITY SO WE CAN SHORE UP HOW ARE WE GOING TO GET WATER, HOW ARE WE GOING TO GET SEWER? WE WANT TO KNOW WHAT OUR LOT LAYOUT IS GOING TO LOOK LIKE, START OUR PLAT PROCESS. THIS IS AN ACTUAL DEVELOPMENT TEAM. I BELIEVE THEY WILL BE DEVELOPING THIS PROPERTY IN THE SHORT TERM IF WE ARE ABLE TO COME TO SOME DECISIONS. BUT THIS LETS US START THE PROCESS AND THE REASON WHY WE WANT TO START THE M.U.D. PROCESS NOW IS BECAUSE IT IS A LENGTHY PROCESS, AND THIS TEAM HAS TO KNOW THAT THERE IS A WAY , FINANCIALLY, TO DEVELOP THE DISTRICT, AND SO THEY DON'T NECESSARILY WANT TO SPEND $40,000 ON A UTILITY STUDY, AND WATER CITY, AND THE DRAINAGE STUDIES, IF THEY DON'T KNOW THAT THERE IS GOING TO BE A WAY TO FINANCE ALL OF THE INFRA STRUCTURE.

>> IT IS ON THE AGENDA. >> RIGHT. ANY OTHER QUESTIONS?

>> I JUST WANT TO SAY, I APPRECIATE YOU ALL BEING WILLING TO COME AND LET US FIRE QUESTIONS AT YOU.

>> OH YEAH. >> AND TRY TO FIGURE THIS OUT.

IT'S BEEN VERY HELPFUL, AND I REALLY APPRECIATE YOU COMING. I THINK HAS ALREADY BEEN SAID, BUT YOU'RE NOT TELLING US ANYTHING ABOUT THE CITY THAT WE DON'T ALREADY KNOW, AND WE

[01:30:01]

>> YEAH. THANKS FOR HAVING US. >> AND AS WAS MENTIONED, STEPH DOES RECOMMEND SUPPORTING THIS. WE THINK THIS FALLS IN LINE WITH CAMINO, THE VICTORIA INITIATIVE, WHERE WE HAVE TO BE MORE INTENTIONAL WITH THINKING OUTSIDE OF THE BOX AND FINDING NEW WAYS WE CAN ACHIEVE GROWTH AND THIS FALLS IN LINE WITH THE MESSAGE THAT WAS SHARED LAST WEEK, THAT WE ARE TRYING TO BE MORE INTENTIONAL. AND AGAIN, TONIGHT, WE ARE ASKING FOR CONSENT FOR THE CREATION. THERE IS DUE DILIGENCE. THERE WILL BE LOTS OF OPPORTUNITIES TO PROVIDE ANY SORT OF STOP OPPORTUNITY, IF THAT WERE TO BE THE CASE.

>> THIS IS STEP ONE AND THERE ARE MANY STEPS TO COME.

>> ABSOLUTELY. >> ARE IT.

>> WITH THAT THEN, I WILL ENTERTAIN ANY MOTIONS WITH RESPECT TO ITEM D 2. OUR AGENDA.

>> I MOVE THAT WE ADOPTS. >> I SECOND.

>> WE HAVE A MOTION AT A SECOND TO ADOPT. IS THERE ANY FURTHER DISCUSSION? ALL THOSE IN FAVOR, SAY AYE. ITEM D 2 PASSES. THIS IS A VERY EXCITING POSSIBILITY AND CONCEPT. AGAIN, THANK YOU ALL FOR YOUR TIME. WE APPRECIATE IT. I'M SURE WE WILL BE SEEING MORE OF YOU GUYS AS THIS THING GETS THE RIGHT DIRECTION, SO. WE LOOK FORWARD TO THAT. ALL RIGHT. WITH THAT,

[3. Approve the 3rd Amendment to the containerized commercial solid waste ...]

[1. Landfill and Garden-Ville Rate Increase Update. Darryl Lesak, Director...]

>> ITEM E3 IS A RESOLUTION TO APPROVE THE 3RD AMENDMENT TO THE CONTAINERIZED COMMERCIAL SOLID WASTE CONTRACT WITH WASTE

MANAGEMENT OF TEXAS, INC. >> GOOD EVENING, COUNCIL. THAT IS IMPRESSIVE. I CAN'T WAIT FOR NORTHSIDE ROAD TO GET FIXED. FOR THE NEW YORK COUNCILMEMBERS, WE HAVE CONTRACTS WITH THREE DIFFERENT COMPANIES THAT HANDLE THE WASTE IN VICTORIA. ONE IS THE LANDFILL, WHICH IS HANDLED BY REPUBLIC. ONE IS OUR COMPOST FACILITY. THE OTHER IS WASTE MANAGEMENT, WHO DOES OUR CONTAINER COMMERCIAL. THAT'S ALL THE DUMPSTERS YOU SEE IN TOWN. FOR THE NEW YORK COUNCILMEMBERS, IN 2001, WE CANCELED THE CONTRACT WE HAD WITH WASTE MANAGEMENT AT THAT TIME. WE BID IT OUT. IT WAS A YEAR-LONG PROCESS. WE HAD SIX BIDDERS, AND WHEN IT WAS ALL SAID AND DONE, AND THE SMOKE CLEARED, WASTE MANAGEMENT HAD WON AGAIN. IT IS THE BEST OVERALL VALUE OUT OF THE CONTRACT FOR THE CITY. IT IS A 10 YEAR CONTRACT. AND SO, WITH

THAT, TOO FAST. THAT WAS QUICK. >> VISITATION. THERE WE GO. NO.

THERE WE GO. WASTE MANAGEMENT IS REQUESTING A 3.3219% INCREASE. NOW, ALL OF THESE CONTRACTS , RATE INCREASES, ARE BASED ON CONSUMER PRICE INDEX, THE CPI. ALL OF OUR CONTRACTS ARE WRITTEN THE SAME FOR ON THE SOLID WASTE SET FOR WASTE MANAGEMENT DOES THERE'S DIFFERENT. BECAUSE OF DUMPSTERS, THE DISPOSAL IS FIGURED INTO THE COST. WHEN YOU LOOK AT THE COST OF THE DUMPSTER, 60% OF IT IS THEIR MAINTENANCE AND OPERATION, THE COST OF RUNNING THE TRUCK, PAYING THE DRIVER, ENTRANCE, ALL THOSE THINGS. 40% OF THAT COST IS DISPOSAL. AND SO, THAT IS A PASTOR. THEY PASS THAT RATE STRAIGHT THROUGH. SO WHEN YOU TAKE THE TWO, AND YOU AT THEM TOGETHER, IT COMES OUT TO THE 3.319% TOTAL. EACH YEAR, I GIVE AN EXAMPLE. IF YOU HAVE THIS ONCE A WEEK PICKED UP, YOU PAY $149 PER MONTH. THE NEW RATE WILL TAKE THAT TO 154. SO IT IS AN INCREASE OF $4.96 PER MONTH. FOR THAT DUMPSTER. NOW, OKAY. I MENTIONED THE 4% INCREASE. SO THE CONTRACT IS A

[01:35:05]

>> ANY QUESTIONS? OKAY. LOOKING AT THE AGENDA, I BELIEVE THE ACTION ITEM IS ITEM E 3. I WILL ENTERTAIN ANY MOTIONS TO ADOPT

E 3. >> SECOND.

>> WE HAVE A MOTION AT A SECOND GRADE ANY DISCUSSION OR FOR THE

[2. Texas Municipal Retirement System Update on the Adoption of a Non Retr...]

>> ANY OPPOSED? >> OKAY. ITEM E 3 PASSES. WE WILL COME BACK TO CITY MANAGER REPORTS AND GO TO ITEM F 2.

>> ITEM F2 IS A REPORT ON THE TEXAS MUNICIPAL RETIREMENT SYSTEM UPDATE ON THE ADOPTION OF A NON RETROACTIVE COLA.

>> I MISS YOU UP ON THAT EVERY MEETING.

>> APRIL AND I ALWAYS TALK ABOUT, WHO IS GOING TO SAY IT? WE WILL HAVE TO START FLIPPING A COIN.

>> LET'S GET INTO IT. >> IN ANY CASE, SO, YOU MAY RECALL THE TERM NON-RETROACTIVE COLA -- C.O.L.A.. BOTH MY FOCUS AND YOUR FOCUS AND EVERYBODY'S FOCUS WAS ON WHAT WE WERE PROPOSING WITH THE SERVICE AGREEMENT BECAUSE THAT WOULD HAVE PRODUCED A MEANINGFUL DIFFERENCE, YOU KNOW, TO OUR RETIREES. AND SO IT GOT LOST IN THAT CONVERSATION UNINTENTIONALLY. TAKING A DEEPER DIVE INTO THE RECOMMENDATION FOR ADOPTING A NON-RETROACTIVE C.O.L.A.. IN JULY, YOU DID APPROVE, PURSUING A COMPENSATION PLAN THAT WOULD ADOPT A NON-RETROACTIVE C.O.L.A.. WE MENTIONED THAT WOULD PRODUCE ROUGHLY $100,000 IN SAVINGS, WHICH WE APPLY TOWARDS THE COMPENSATION PROGRAM THAT IS IN THE FISCAL YEAR 2025 BUDGET. IN ORDER TO GET THAT DONE, WE NEED TO BRING BEFORE YOU AN ORDINANCE THAT YOU WOULD APPROVE TO MAKE THE CHANGE WITH TMRS. WE WANTED TO BRING THAT ORDINANCE FREE TONIGHT, BUT WE FELT IT MORE APPROPRIATE TO TAKE A STEP BACK, AND BECOME MORE FAMILIAR WITH WHAT THE C.O.L.A. IS. WE THOUGHT IT WOULD BE GOOD TO INVITE TMRS TO TALK ABOUT IT AND TALK ABOUT ANY CUSHIONS YOU MIGHT HAVE. I HAVE KNOWN HIM FOR QUITE A WHILE THROUGH MY INVOLVEMENT WITH TMRS. I'M HAPPY THAT HE WAS ABLE TO JOIN US TONIGHT TO WALK YOU THROUGH IT.

>> THANK YOU. GOOD EVENING TENT MAYOR AND THE COUNCIL. CAN I START BY SAYING I REALLY APPRECIATE THE APPROACH THAT MR. GARZA IS TAKING WITH THIS, MAKING SURE THAT THE COUNCIL IS EDUCATED ABOUT THE DECISIONS BECAUSE WITHIN TMRS, EVERY CITY THAT IS PART OF THE PLAN GETS TO MAKE THE DECISIONS THAT ARE BEST FOR YOUR CITIZENS, FOR YOUR TAXPAYERS, AND FOR THE WORKERS HERE IN THE CITY, AND I KNOW THAT A LOT OF CITIES TAKE THESE ORDINANCES WITHOUT UNDERSTANDING . IT IS IMPORTANT TO ME, THIS APPROACH, MAKING SURE THAT EVEN THOUGH IT MAY BE BUDGETED COME TO TAKE THE TIME TO ENSURE YOU FULLY UNDERSTAND THE OPTIONS BECAUSE I WILL TELL YOU THAT THE TMRS C.O.L.A.

OPTIONS ARE COMPLETED. I HOPE YOU HAVE AS MANY QUESTIONS AS YOU HAVE FOR PREVIOUS SPEAKERS. I THOUGHT WOULD BE GOOD TO TALK

[01:40:08]

ONE THING I NOTICED IS THAT BECAUSE THIS RETROACTIVE C.O.L.A., I CAN TELL YOU FROM TALKING TO ACTUARIES, WE ARE THE ONLY TERMS A SIN THAT HAS A RETROACTIVE C.O.L.A. LIKE THIS.

MOST CITIES, MOST PENSION PLANS, WHEN THEY HAVE A C.O.L.A., DOES NOT WORK THIS WAY. IT DOES NOT RETROACTIVELY CATCH UP PEOPLE FOR ALL THE YEARS THAT THEY HAVE THIS INFLATION. SO IT DOES CALCULATE EVERY RETIREES BENEFIT DIFFERENT BASED ON THE FIRST -- YEAR THAT THEY RETIRE. BUT THIS NEW NON-RETROACTIVE C.O.L.A. OPTION ALLOWS, I'LL TELL YOU, THIS IS INTRODUCED BASED ON THE POSITION FROM THE TEXAS LEGISLATURE THAT WAS INTRODUCED IN 2003. THE REASON IT WAS BROUGHT IN IS BECAUSE WE DID HAVE CITIES FROM ACROSS THE STATE THAT WERE LOOKING FOR ADDITIONAL OPTIONS TO PROVIDE WHEN IT CAME TO A C.O.L.A. BECAUSE, ESPECIALLY FOR CITIES THAT NEVER OFFERED A C.O.L.A., IF YOU CAN IMAGINE RIGHT NOW, TRYING TO PROVIDE C.O.L.A. TO YOUR RETIREES, IF YOU WANTED TO PROVIDED, YOU WOULD HAVE TO CATCH UP ALL OF THEM FOR ALL OF THE YEARS THAT THEY HAVE THE C.O.L.A., SO IT WAS REALLY EXPENSIVE. WHEN THIS LEGISLATION WAS INTRODUCED, IT OFFERED FOR THE FIRST TIME, THE OPPORTUNITY TO OFFER THIS NON-RETROACTIVE C.O.L.A.. AND NOW THIS NON-RETROACTIVE C.O.L.A. WORKS THE WAY THAT MOST OF YOU MAY HAVE, AND I'M GOING TO SCROLL BACK FOR A SECOND. IF YOU LOOK AT THE BOTTOM, I SHOW FOR 2025, WHEN THIS IS CALCULATED, SOMEWHAT RETIRED IN 1982. THEY WOULD RECEIVE A 3% INCREASE BASED ON THE C.O.L.A.. IT DOESN'T EITHER YOURS OR HE WOULD GET A 2.35% C.O.L.A.. IF YOU LOOK NOW, WITH THE RETROACTIVE C.O.L.A., IT WOULD IT IS NO MATTER WHEN THEY RETIRE. IT HAS THE SAME BENEFIT WHEN IT COMES TO THIS C.O.L.A. BENEFIT. TO SUMMARIZE THE WAY THIS IS, IN A BIG PICTURE WHEN IT COMES TO THIS NON-RETROACTIVE C.O.L.A., IT IS A SIMPLER WAY TO HAVE A

[01:45:09]

YOU DON'T HAVE -- SOME A LONG TIME AGO. YOU WOULD KNOW EXACTLY HOW MUCH BENEFIT INCREASE IT WOULD INCREASE BASED ON THE ARE THEY RETIRE BUT IT WOULD GO AWAY. IT WOULD BE BASED ON THE MOST RECENT YEAR. A COUPLE INTERESTING THINGS ABOUT THIS BILL THAT I WANT TO INCLUDE, AS WELL, IS THAT WHEN IT WAS WRITTEN, IT WAS WRITTEN WITH A COUPLE OF THINGS IN MIND. AND WANTED TO MAKE SURE THAT CITIES COULD ONLY MAINTAIN OR INCREASE THEIR BENEFITS, SO FOR EXAMPLE, HERE IN VICTORIA, YOU HAVE A 70% RETROACTIVE C.O.L.A.. WITH THIS OPTION, CITIES DON'T HAVE THE ABILITY TO LOWER THE C.O.L.A.

PERCENTAGES. THEY CAN ONLY MAINTAIN IT. THERE IS A SUNSET ON THIS LEGISLATION, SO IT IS SOMETHING THAT CITIES CAN ONLY OFFER FOR THE FIRST TIME LAST YEAR IN 2024, FOR 2025 FOUR 2026. THERE'S ONLY A COUPLE MORE YEARS THAT CITIES HAVE THE OPPORTUNITY TO TAKE ADVANTAGE OF THIS NON-RETROACTIVE C.O.L.A., UNLESS LEGISLATION PASSES TO EXTENDED, THAT WOULD BE SOMETHING IN FUTURE YEARS, IT WOULD NOT BE A POSSIBILITY FOR CITIES. AND AT LAST, I KNOW THIS IS INFORMATION THAT HAS ALREADY BEEN SHARED WITH YOU, BUT I WANTED TO KNOW, AND MIND YOU, THERE ARE A LOT OF NUMBERS ON THIS, SO YOU MAY HAVE SEEN THIS. NO NEED TO GO THROUGH IT LINE BY LINE, BUT REALLY, THE IMPORTANT THING HERE, AND IT IS NOT HIGHLIGHTED, IS AT THE CONTRIBUTION RATE AT THE BOTTOM, IT WOULD LOWER THE CITY'S CONTRIBUTION RIGHT BY 74 BASIS POINTS FOR .74, OR .72, AND AS MR. GARZA MENTIONED, AS WELL, THAT IS THE SAVINGS THAT HE TALKED ABOUT. IT WOULD BE THE COST OF THE CITY'S BENEFITS. IT WOULD BE DECREASED GOING FORWARD, BASED ON THE CHANGE TO THE CITIES C.O.L.A. FOR THE RETIREMENT

PLAN, SO. >> AND YOU MAY RECALL THE CONVERSATION IN THE SUMMER ABOUT THE CONCERN ABOUT THE INCREASED RATE OVER TIME. IN A WAY, ADOPTING A NONDESTRUCTIVE COLA ALSO ENSURES THAT IT STAYS AT 70%. BECAUSE WHAT ENDS UP HAPPENING IS ONCE YOU GET OUTSIDE OF THE SUNSET, WINDOW, IF YOU WILL, IT JUST MAKES IT A LITTLE BIT MORE CHALLENGING TO MAKE CHANGES, AND SO, ANYWAY, THAT IS JUST ANOTHER PERSPECTIVE ON IT. AND AGAIN, I'M HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE ON IT. IT MAY OR MAY NOT HAVE BEEN WHAT YOU THOUGHT IT WAS, WHEN WE DISCUSSED IT, BUT , I KNOW WE DIDN'T TAKE AS MUCH OF A DEEP DIVE ON IT BECAUSE OF FOCUSING ON THE UPDATED SERVICE CREDIT AT THE TIME.

SPOKE THE CONSUMER PRICE INDEX CHANGES EVERY YEAR, CORRECT?

>> THAT IS CORRECT. >> SOMEONE IS GOING TO GAIN MORE MONEY OR LOSE MORE MONEY. RETROACTIVELY. IF WE GO TO

THIS. >> YEAH. THE FIRST PART OF YOUR QUESTION IS GREAT. IT IS GOING TO FLUCTUATE EVERY YEAR. THERE HAVE BEEN YEARS OF HIGH INFLATION, AND TIMES OF LOW INFLATION, SO THAT NUMBER IS GOING TO BE AFFECTED BY THE PRICE OF GOODS , ESSENTIALLY, IS HOW THEY GOT LIKE THAT.

THERE IS AN ASSUMPTION THAT, BETWEEN THESE TWO DIFFERENT COLA OPTIONS, THE RETROACTIVE COLOR DOES PROVIDE A SLIGHTLY HIGHER BENEFIT GOING FORWARD, FOR YOUR RETIREES, SO BY CHANGING TO THE NON-RETROACTIVE C.O.L.A., IT IS A LETTER INCREASE THE BETTING ON THE INFLATION RATE FOR YOUR RETIREES, SO THAT IS WHERE THE COST SAVINGS COMES. WHILE IT IS CUMULATIVELY FROM ALL OF YOUR RETIREES, A SLIGHTLY LOWER INCREASE TO THEIR BENEFIT, IT IS SOMETHING THAT ADDS UP TO SAVINGS FOR THE CITY, AND JUST TO BE CLEAR, BECAUSE SOMETIMES, I KNOW THE TERM BENEFIT GETS THROWN OUT A LOT, I WANT TO BE VERY CLEAR. WHEN IT COMES TO TMRS, ANYONE'S RETIREMENT CHECK THAT WE SENT EVERY MONTH, WE CALL THAT THE MONTHLY BENEFIT, THAT WOULD NEVER BE DECREASED, SO ANYTHING A PERSON IS ALREADY RECEIVING OR RETIREES ARE IN THAT BENEFIT, IT IS GUARANTEED TO THEM. ANY PREVIOUS TIMES THE BENEFIT HAS BEEN INCREASED BASED ON C.O.L.A., THAT IS GOING TO TO THEM. THE ONLY THING WE'RE TALKING ABOUT HERE BETWEEN THE TWO IS THAT WITH THE NONDESTRUCTIVE C.O.L.A., SINCE IT DOESN'T GO BACK AND FILL IN AND RETROACTIVELY UPDATE THEIR ACCOUNT EVERY CONCLUSION, THE EXPECTATIONS GOING FORWARD IS THAT THE RETIREMENT WOULD DOES RETIREE WOULD RECEIVE AN INCREASE TO THE BENEFIT YEAR OVER YEAR. DOES THAT ANSWER

YOUR QUESTION? OKAY. >> CAN YOU GO BACK TO THE SITE

WE SHOULD THE 2023 -- >> LAST TIME I TRIED TO DO THIS, I GOT TO EXECUTIVE SESSION. LET'S SEE.

>> RIGHT THERE. >> YEAH.

>> NOW, IF THE INFLATION FOR 2023 WAS 4%, WITH THE PERSON IN

1980 TO GET 4%? >> IF THE INFLATION RATE -- WOULD YOU REPHRASE THAT QUESTION FOR ME?

>> THE WAY YOU HAVE IT STATED -- IT WAS 2.35 POINT LET'S SAY

[01:50:04]

1982? >> YET. IT WOULD. SO THE PERSON, IN THIS EXAMPLE, ONE OF THE MAIN DIFFERENCES, THAT PRESENT IN 1982 WAS ALWAYS GOING TO BE HIGHER. ESSENTIALLY WHAT WE WOULD DO IS WHATEVER THAT 2023 IS, FOR THE NONDESTRUCTIVE CALCULATION, THAT YEAR IS INCLUDED IN THE RETROACTIVE CALCULATION, SO IT HAS THE ONE YEAR. IT LOOKS AT JUST A SINGLE YEAR'S INFLATION RATE AND SAYS, OKAY. WE WILL GIVE YOU AN INCREASE BASED ON LAST YEAR'S INFLATION RATE THE RETROACTIVE USES THAT AS THE INPUT. THEY GO ALL THE WAY BACK AND GO OVER ALL THESE OTHERS. WHAT WAS THE INFLATION WE MISSED OUT ON, TO RESTORE THE PURCHASING POWER FOR THE RETIREE, AND SO THAT IS WHERE THE DIFFERENCE COMES FROM. THIS NUMBER, THOUGH, IT JUST EVENED OUT. I'LL BE HONEST. I ROUNDED UP TO 3%. IT WAS 2.97. I THOUGHT IT WOULD BE CLEANER TO HAVE IT 3%. DOES THAT ANSWER YOUR QUESTION?

>> YES. >> OKAY.

>> ANY OTHER QUESTIONS? >> I HAVE A QUESTION. TO FULLY UNDERSTAND, INVOCATIONS OF THE CHANGE, COULD YOU PROVIDE US WITH A WORST-CASE SCENARIO? HE USED THE TERM SLIGHTLY LOWER.

SLIGHTLY LOWER. THAT IS PRETTY AMBIGUOUS. BUT WITH THAT LOOK LIKE FOR SOMEONE RETIRING IN THE NEXT YEAR WITH A NON-RETROACTIVE C.O.L.A.? WHAT IS THAT PROPOSED CHANGE? HOW DOES THAT AFFECT THEIR LONG-TERM PENSION

SUSTAINABILITY? >> THAT IS A FANTASTIC QUESTION. I GENERALLY HATE USING TERMS LIKE THAT. THE PROBLEM HERE IS WE ARE DEALING WITH ASSUMPTIONS. BUT I WAS ABLE TO DO IS LOOKING FOR. SO LET'S SAY YOU MAKE THIS CHANGE, AND YOU CALCULATE THIS GOING FORWARD FOR TWO DIFFERENT PEOPLE THAT RETIRED, IF WE USE OUR INFLATION ASSUMPTION, WHICH IS WHAT WE USED FOR ALL OF OUR CALCULATIONS, 2.5%, KEEP THAT IN MIND AND I WILL EXTRAPOLATE A LITTLE BIT MORE. YOU ARE ONLY TALKING ABOUT, FOR THE C.O.L.A., YOU'RE TALKING ABOUT IN THE FIRST 10 YEARS, IT WOULD BE A DIFFERENCE OF .66%. THAT MEANS LESS THAN HALF A PERCENT DIFFERENCE FOR THE RETIREE BASED ON THE TWO DIFFERENT C.O.L.A.S. IT JUST CONTINUES TO INCREASE. THE FIRST YEAR WOULD BE .01% DIFFERENCE. YEAR TWO WOULD BE A 0.4%. THAT RETROACTIVE AGAIN, KIND OF STARTS TO BE HIGHER OVER TIME. IN YEAR ONE, IT WILL BE .01. TO YOUR OVERALL POINT, THOUGH, WHAT IS THE WORST-CASE SCENARIO? THE HIGHER THE INFLATION RATE IS, THE BIGGER THE DIFFERENCE IS GOING TO BE, SO IN MY ASSUMPTION OF 2.5%, IF INFLATION FOR THE FOLLOWING YEAR IS 10%, 8%, THAT GAP IS LARGER BECAUSE THE CALCULATION DIFFERENCE IS. THOSE ARE BASED ON OUR ASSUMPTIONS, BUT IT IS GOING TO VARY BASED ON THE ACTUAL INFLATION RATE, AND IT WILL BE A LOWER DIFFERENCE IF

IT IS LESS THAN 2.5% POINT >> AND TO BE CLEAR, SO THAT I UNDERSTAND, CURRENT RETIREES WHO POTENTIALLY ARE ON A FIXED INCOME, MOVING TO THE NONDESTRUCTIVE C.O.L.A., WILL LET IMPACT THEM IN THE SCENARIO YOU JUST DESCRIBED?

>> NONE OF OUR RETIREES ARE ON A FIXED INCOME RIGHT NOW BECAUSE WE ALREADY OFFER THE C.O.L.A..

>> I UNDERSTAND WE OFFER THAT, AND I UNDERSTAND WHAT YOU'RE SAYING, BUT WHAT I'M SAYING IS, IF THEY ARE COUNTING ON THIS PARTICULAR AMOUNT FOR THEIR LIVING EXPENSES, HOW DOES THAT IMPACT THEM MOVING FORWARD, IF THAT INCREASE IS NOT THERE . OR IS THE INCREASE THERE FOR THOSE WHO HAVE ALREADY RETIRED? I JUST WANT TO BETTER UNDERSTAND IT.

>> IF YOU MAKE THIS CHANGE, IT AFFECTS ALL OF YOUR RETIREES.

THE CALCULATION FOR EVERY RETIREE IN THE CITY OF VICTORIA WILL BE USING THE NON-RETROACTIVE REGULATION.

THAT WOULD BE THE COALITION GOING FORWARD, NO MATTER HOW LONG THEY HAVE BEEN RETIRED, CERVONE WOULD BE AFFECTED BY THIS GOING FORWARD, JUST TO MAKE A POINT, I KNOW I USED THOSE GENERALIZED EXAMPLES . I DID RUN A REPORT TO SHOW, THIS IS FOR EVERY RETIREE BECAUSE IT IS ABOUT HOW YOU HAVE A RETIREE FROM 1982 AND CURRENT RETIREES INSTEAD OF TALKING ABOUT, BECAUSE I THINK IT IS A REALLY VALID POINT, WHEN I SAY, IT IS, YOU KNOW, A MINIMAL DIFFERENCE FOR EIGHT VERY SMALL DIFFERENCE, WHEN IT'S MY CHECK, IT MATTERS. IT MAY NOT BE MINIMAL TO ME. FOR YOUR LONGEST TENURED RETIREE, WHICH WOULD SEE THE DIFFERENCE, IT WOULD BE AN INCREASE OF $13 PER MONTH. THE PERCENTAGE AFFECTED THE MOST WOULD HAVE -- IT WOULD STILL GET A $60 INCREASE OR A $50 INCREASE AS OPPOSED TO THE $63 INCREASE. THEY ARE TALKING ABOUT A SEVEN DOLLAR DIFFERENCE. A THREE DOLLAR DIFFERENCE. WITHOUT GOING

[01:55:06]

DIFFERENCE. >> THANK YOU.

>> SURE. >> ANY OTHER QUESTIONS?

>> THANK YOU FOR THE INFORMATION. THANK YOU FOR ANSWERING THE QUESTIONS. I CERTAINLY APPRECIATE BEING FURTHER EDUCATED ON THIS. AS I STARTED THAT CONVERSATION, THE BUDGET WAS TAKEN -- THE NEXT STEP WOULD BE TO BRING THE ORDINANCE BEFORE YOU FOR CONSIDERATION.

>> VERY GOOD. THANK YOU. GOING BACK TO THE AGENDA, THEN, MR. GARZA, WHY DON'T WE BUMP UP ITEM OF 4. I KNOW THERE ARE SOME PEOPLE HERE ON THAT. THEY HAVE TROUBLE TO DO -- HE IS STAYING IN TOWN. WHY DON'T WE BUMP THAT UP AND WE WILL GO TO

ITEM F 4. >> I DON'T KNOW. IT IS ON THE

PUBLIC SAFETY HEADQUARTERS. >> UPDATE ON THE CONSTRUCTION OF THE PUBLIC SAFETY HEADQUARTERS. MR. FOR AL, HOW

ARE YOU? >> THANK YOU FOR LETTING ME COME TO TALK TO YOU A LITTLE BIT. I KNOW YOU HAVEN'T HEARD ANYTHING ABOUT IT RECENTLY. WE FELT LIKE YOU SHOULD PROBABLY GET AN UPDATE ON THIS.

THROUGH A BRIEF INTRODUCTION OF HOW WE GOT HERE. TONIGHT, WE HAVE FOLKS TO TALK TO YOU ABOUT THE PROJECT. AS YOU MAY REMEMBER, WE STARTED THE PROJECT IN OCTOBER 2022. BY INITIATING AN AGREEMENT WITH FGMA ARCHITECTS FOR DESIGN.

THEN A LITTLE WHILE AFTER THAT, WE ENTERED INTO AN AGREEMENT WITH ON AT THE END OF THE PROCESS, THE THIRD PHASE OF THE DESIGN PROCESS. FROM THERE ON OUT, IT'S BEEN HITTING THE GROUND RUNNING. THE TIMELINE FOLLOWS THROUGH THERE. HE ISSUED THE NOTICE TO PROCEED. IN FEBRUARY. AROUND THE SAME TIME. WE BROUGHT YOU A GUARANTEED MAXIMUM PRICE, AND A RECAP ON THE DELIVERY METHOD OF THIS. INTEREST RATES HAVE BEEN REALLY LOW. WE HAD A LOT OF PROJECTS. INTEREST RATES WENT UP. THERE BECAME INTEREST -- INCREASED RISK. THANKFULLY, WE HAD SPAWGLASS THERE TO JUMP IN . IN MARCH, THEY BEGAN CONSTRUCTION.

THE GUARANTEED MAXIMUM PRICE FOR CONSTRUCTION IS $47,216,307. THAT MEANS THIS PROJECT WILL COST US MORE THAN THAT. THERE ARE SOME SOFT COSTS TIED TO THIS THAT INCREASE THE PROJECT AROUND 52 MILLION IN TOTAL. AS YOU REMEMBER -- IN TESTAMENT TO THE CONSTRUCTION MANAGEMENT, WHEN WE STARTED THE PROCESS IN OCTOBER OF 2022, WE WERE LOOKING AT A $33.8 MILLION BUILDING. BY THE TIME WE WERE READY TO VILLAGE, IT IS A $52 MILLION BUILDING. SO THERE IS SOME SIGNIFICANT CHANGE IN SIGNAL GET VALUE IN CREATING THAT SECURITY IN THE PROCESS.

SO I WANT TO INVITE UP THEY ARE TAKING CARE OF US THROUGH THE MANAGEMENT OF EXPENSES AND THE OVERALL DAY-TO-DAY EXPENSES OF THE

PROJECT. >> GOOD EVENING. WELCOME.

>> GOOD EVENING, MAYOR AND COUNCIL. IT IS GREAT TO BE HERE TONIGHT. IT'S GREAT TO SEE YOU GUYS FOR THE SECOND TIME TONIGHT. WHAT A PRIVILEGE. I AM HERE REPRESENTING MARK STEIN.

I'M REALLY HAPPY FOR HIM. BEFORE I GET INTO THIS, I THINK IT GOES WITHOUT SAYING ACROSS THE BOARD, WE CALL THIS THE

[02:00:02]

SPAWGLASS IS 97% THROUGH THE BUYOUT. THE SLIGHTEST IS 18% IS LOCAL TO VICTORIA. THAT IS 100 MILE CIRCULAR RADIUS THROUGH ALL OTHER SUBCONTRACTORS AND SUPPLIERS. THAT IS PROBABLY OVER AND ABOVE WHAT WE ACTUALLY ANTICIPATED AT SOME OF THE LOCAL SUBS. KELLY PAINTING AND DRYWALL. A FEW OTHER ONES THAT MIKE AND CJ MAY MENTION. SO, THE BUYOUT PROCESS. THE PROCUREMENT OF THE SUBCONTRACTORS AND THE EXECUTION OF THE PURCHASE ORDERS IS WHAT THAT PROCESS IS, AND IT IS A REALLY BIG, MONUMENTAL TASK -- THAT IS THE THEME THROUGHOUT THE FIRST PORTION. THEY GO THROUGH EVERY SINGLE SCOPE OF WORK. THEY HAVE BEEN WORKING WITH SOME OF THE CHARACTERS TO FIND NEW ONES. AND THEN SCOPE BY SCOPE, THEY PRESENTED TO MYSELF AND THE DESIGN TEAM AND IN SOME CASES, THE CITY. WE ACTUALLY REVIEW EVERY BIT THAT THEY WERE SAFE.

EVERY PRICE THAT THEY RECEIVE TO ENSURE THAT IT IS EITHER WITHIN THE SCOPE , THE MISSING SCOPE, RECONCILE IT WITH THE GMP COST. IT IS BUDGETED AND SIGNED ON THE DOTTED LINE BEFORE CONSTRUCTION DOCUMENTS ARE TOTALLY FINISHED.

SOMETIMES, IT RESULTS IN AN OVERAGE OF COSTS. WHICH IS GREAT. RIGHT NOW, THERE ARE ANTICIPATED SAVINGS. IN THAT BUYOUT PROCESS, SO WE CALL THEM BUYOUT SAVINGS AT THIS POINT.

IF YOU REMEMBER, WHEN THE AMENDMENT WAS BROUGHT TO YOU EARLIER THIS SPRING, WE CHANGED A LITTLE BIT OF THE CONTRACT LANGUAGE THAT ALLOWS ANY SAVINGS AT THE END OF THE PROJECT OR THE BUYOUT PROCESS, TO GO 100% BACK TO THE CITY, BEFORE IT WAS A 75, 25 SPLIT. NOW IT IS 100% BACK TO THE CITY. IT IS ABOUT 97% THROUGHOUT THE PROCESS OF CORPORATE WE ARE REALLY CLOSE. WE ARE HOPING IN THE NEXT COUPLE OF WEEKS, MAYBE A MONTH OR TWO, IT WILL BE 100% FINISHED AND WE WILL BUILD TO PROVIDE THAT BUYOUT SAVINGS TO YOU. ALONG WITH THE BUYOUT SAVINGS, IN A GMP, THERE IS A CONTRACTORS CONTINGENCY. AND THAT IS BECAUSE OF THE FEMALE RISK THAT THIS INCOME SETTING UP AN ONLINE WITH A MAXIMUM PRICE BEFORE THE PRICE IS FINISHED. WE FIRST SEE SOME SAVINGS AT THE END OF THE DAY, ALSO COMING BACK TO THE CITY, FROM THAT CONTINGENCY ALLOWANCE IS . LIKE I SAID, THERE'S ALWAYS FLEXIBILITY IN IT BECAUSE WE ARE NOT 100% THROUGH THE BUYOUT PROCESS, BUT JUST KNOW WE ARE DOING EVERY WEEKEND TO REVIEW MAYBE 36 OR 37, SO IT IS A VERY THOROUGH, AND IT GOES THROUGH ABOUT FOUR DIFFERENT LAYERS OF REVIEW BEFORE THEY COULD EVEN SIGN A CONTRACT WITH A SUBCONTRACTOR OR SUPPLIER.

ALONG WITH THAT, EVEN THOUGH WE JUST BROKE GROUND IN MARCH, THERE'S BEEN SUBSTANTIAL PROGRESS, WHICH SOME OF YOU MAY HAVE SEEN AROUND THE SITE. THERE IS ABOUT $13.1 MILLION THAT HAS BEEN INVOICED AS OF LAST NIGHT, SO LET US THROUGH THE END OF SEPTEMBER. AND THERE'S 34 MILLION REMAINING.

THAT IS RAPID PROGRESS IN JUST A FEW SHORT MONTHS. HOW DOES THIS ALL HAPPEN? I THOUGHT ABOUT THE LAYERS OF REVIEW WHEN IT COMES TO THE BUYOUT PROCESS. BUT THAT PROCESS CARRIES OVER INTO THE ACTUAL CONSTRUCTION AND THE BRICK-AND-MORTAR OF THE BUILDING, AS WELL. WE HAVE DIFFERENT PORTIONS OF QUALITY CONTROL AND QUALITY ASSURANCE AT THE END OF THE DAY, THERE ARE THE CHECKS AND BALANCES BETWEEN THE CONTRACTOR, THE DESIGN TEAM, AND MEETING THE CITY EXPECTATIONS, REALLY, SO SPAWGLASS PROVIDES QUALITY CONTROL, AND THEIR OWN LEVEL OF QUALITY ASSURANCE. THEY ARE DIRECTLY RESPONSIBLE FOR THAT, IN THE SCOPE OF THEIR CONTRACT, AND THEY DO IT BY A REALLY WELL-THOUGHT-OUT THREE-PHASE PROCESS. AND THEY MIGHT ELABORATE ON THAT A LITTLE BIT MORE, BUT I REALLY ENJOY THEIR PROCESS BECAUSE IT IS PRECONSTRUCTION.

PRECONSTRUCTION AND THEN INITIATION AND THEN FOLLOW-UP PHASE. PRECONSTRUCTION IS THEIR SUBMITTALS. IT IS RFI'S. IT IS GOING THROUGH THEY FIND HIM -- FINE TOOTH COMB AND IMPLEMENT

[02:05:02]

ALSO, MEDICATION. WE CALL IT THAT UNICORN PROJECT. IT IS NOT AS CORNY AS IT SOUNDS. SPAWGLASS DOES A GREAT JOB OF COMMUNICATING WITH THE CITY THROUGH THE'S -- THE MEETINGS.

TERRACON HAS QUALITY ASSURANCE ON THE BUILDING. THEY ARE DOING TESTING IN THE FIELD AND ALSO IN THE LAB. YOU HAVE COMMISSIONING, AS WELL. IT IS A LONG PROCESS, SO THAT IS GOING TO BE ALL OF YOUR M.E.P. . THAT STARTED SEVEN MONTHS AGO.

PRECONSTRUCTION -- GETTING OFF. THEY ARE FAMILIAR WITH ALL OF THE SUBMITTALS I MENTIONED. I MENTIONED THE EXPECTATIONS THERE. AND OTHER COMEDIC ASIAN LOOPS. THEY COME IN AT THE END OF THE DAY, AND ALSO, AND MAKE SURE EVERY SYSTEM IS FUNCTIONING IN THE BUILDING. AND THEN YOU HAVE AGCM. I MENTIONED MARK STEIN. HE IS THE CORE OF OUR AGCM TEAM. HE IS ON SITE NEARLY EVERYDAY. HE IS AT ALL OF THE MAJOR EVENTS AND MEETINGS. HE IS DOING ALL OF THE DAY-TO-DAY OBSERVATIONS AND THAT INCLUDES QUALITY ASSURANCE REPORTING. A LOT OF THINGS ARE HANDLED AT THE FIELD LEVEL. WE DON'T HAVE TO DO MULTIPLE REPORTS IF THEY ARE COMMUNICATING WITH SPAWGLASS.

WE DON'T WANT HIM TO DO WORK WITHOUT US UNDERSTANDING AND SEEING IT IS CORRECT. THERE IS ALSO CONFUSION BUT I'M HOPEFUL THAT EVERYBODY IS ABLE TO GET AS MUCH AS THEY WANT TO WITH ME AND MARK. REALLY, THIS PROJECT IS QUITE SUCCESSFUL SO FAR WHEN IT COMES TO THE QUALITY OF THE BUILDING. THANK YOU.

>> ALL RIGHT. THANK YOU. >> DO YOU HAVE ANY QUESTIONS FOR ANDREA? OKAY. I GO TO THE SITE EVERY TWO WEEKS. AGCM IS THERE DAILY. WHEN I'M NOT THERE, THEY CATCH ME UP ON WHATEVER THEY SAW ON THE OFF WEEK. THEY HAVE BEEN A TREMENDOUS VALUE INVESTMENT IN THIS PROJECT. I WILL INVITE RYAN MEET TO TALK ABOUT -- THEY WERE INITIALLY -- THE FOLKS THAT CREATED THE DESIGN -- WHEN WE DESIGN THINGS ON PAPER, THEY DON'T ALWAYS GO THAT WAY WHEN WE BUILD IT. THESE GUYS ARE STILL INVOLVED AND STILL ENGAGED, MAKING SURE THE INTEGRITY OF THE DESIGN IN THE SPIRIT OF THE DESIGN IS INCORPORATED INTO THE PROJECT.

>> WELCOME BACK. >> GREAT. THANK YOU MAYOR, THANK YOU COUNCIL. IT IS GREAT TO BE BACK AGAIN. IT IS AN HONOR TO BE IN FRONT OF YOU TO PRESENT THE DESIGN. AS DEREK SAID, IT IS WANTING TO HAVE PRETTY PICTURES ON PAPER, BUT TO FOLLOW THAT DESIGN THROUGH, IT IS VERY KEY, AND SO I THINK HERE WITH ME TODAY, OF COURSE, I WANT TO FIRST INTRODUCE, ALSO, SUSAN BARR AND JAMES LINDSAY FROM MARTIN. I DON'T THINK PATRICK IS HERE, BUT I THINK THIS CONSTRUCTION PHASE IS REALLY A KEY PHASE TO DEMONSTRATE OUR ARRANGEMENT FROM THE VERY BEGINNING. BEING FIRM WITH OUR OFFICE IN AUSTIN AND HAVING PUBLIC SAFETY EXPENSE, IT WAS IMPORTANT TO HAVE LOCAL PRESENCE, AND LOCAL FIRMS SUCH AS THEM. SO TO HAVE THE KIND OF -- PATRICK HAS BEEN THERE MULTIPLE TIMES, AT LEAST ONCE EVERY TWO WEEKS FOR THE MEETINGS, BUT BEING SO CLOSE, THAT THIS JUST CAME UP ANYTIME HE HAD TO BE THERE ON SITE, HE COULD, AND THEN WE ARE INVOLVED WITH THE MEETINGS EVERY TWO WEEKS. SOMETIMES RITUALLY. SOMETIMES IN PERSON. WE ARE HERE TO BRIEFLY SHOW A COUPLE OF SLIDES ABOUT THAT, SHOWING DESIGN INTEGRITY THROUGHOUT THE PROCESS. SO, SOMETIMES, BECAUSE

[02:10:04]

WE ARE ABLE TO LOOK AT SOME OF THE DETAILS OF HOW THE WINDOW -- HOW IT WILL WORK WITH THE BRICK, AND THE TABLE. WE CAN ALSO LOOK AT THIS, NOT ON THAT PHOTO YET, BUT THE METAL PANEL, AND WHAT WE CALL THE GLASS FIBER REINFORCED CONCRETE, GFRC, THAT HE TOOK. THAT HELPS CONFIRM ALL THE COLORS AND THE EXACT DETAILS BEFORE THE QUANTITIES ARE APPROVED THAT WILL GO ON YOUR BUILDING, SO IT'S REALLY IMPORTANT PROCESS.

AND THEN, I THINK THE LAST SLIDE HERE IS JUST FURNITURE PLANNING AND COORDINATION, SO YOU SAW THE SLIDE EARLIER ABOUT ALL THE CONSTRUCTION COSTS AND SOFT COSTS. SO FFNE IS FALLING UNDER THOSE SOFT COSTS. AS A WHOLE, TEAM, FGMA HAS A SERVICE TO HELP WITH FURNITURE BETTERMENT AND PLANNING. WE ARE HELPING TO EXPLORE HOW MUCH OF ANY EXISTING FURNITURE MIGHT BE ABLE TO BE REUSED. THERE'S A FURNITURE INVENTORY THAT'S BEEN DONE , WHICH I KNOW YOU CAN'T READ THE CHART ON THE LEFT, BUT IT'S AN EXAMPLE OF GOING THROUGH SO MANY DIFFERENT SPACES IN THE ROOMS, AND BASICALLY, CATEGORIZING THE FURNITURE. AND WHAT HAS TO BE BROUGHT NEW. AND THEN THERE IS THE FURNITURE PLAN ON THE RIGHT THAT SHOWS THE DIFFERENT DEPARTMENTS. IT HAS BEEN A TREMENDOUS PROJECT FOR OUR FIRM. WITH THAT, I WILL TURN IT BACK OVER TO DEREK.

>> THANK YOU FOR THE INFORMATION. I APPRECIATE YOU BEING HERE. IT IS CRITICAL THAT THEY STARTED WITH MOCKUPS AND PLANS AND THEIR HELPING ALL THE WAY THROUGH, PLANNING WHAT IS

[02:15:03]

TALK. >>

>> WELCOME, GENTLEMEN. >> THANK YOU, MAYOR, AND COUNCIL FOR HAVING US TONIGHT. I'M THE PROJECT EXECUTIVE FOR SPAWGLASS. BACK IN FEBRUARY, WE MET WITH THE TEAM AND THE KICKOFF MEETING, AND SOMETHING I TOOK OUT OF THAT WAS WE ASKED THEM, WHAT WAS THEIR MAJOR -- WHAT THEY WANTED TO SEE IN THE BUILDING AS THEIR TOP TOPICS? THEY HAD FOUR OF THEM. BE A GOOD NEIGHBOR. DONE RIGHT, WITHIN BUDGET, AND ON TIME. WE DRAFTED A LETTER AT AIRLINE AND MAIN STREET. WE KNOCKED ON SIX RESIDENTIAL DOORS AND SAID, THIS IS SPAWGLASS. HERE ARE OUR CONTACTS. IF YOU HAVE ISSUES WITH TRAFFIC OR WHATEVER, PLEASE CONTACT US, AND WE WILL REMEDIATE THAT . THE NEIGHBORS WERE APPRECIATIVE, AND I THINK THERE MAY HAVE BEEN A COUPLE OF CALLS MADE, OR EMAILS SENT OUT. I HAD ONE NEIGHBOR, BUT WE TOOK CARE OF ALL THAT. AND WE HAVEN'T HAD ANY ISSUES SINCE.

IT'S PROBABLY BEEN SEVEN MONTHS, TAKING CONSIDERATION WITH THAT. AND ONE WAS DONE RIGHT. THE PROCESS IS GOING VERY WELL. HE HEARD THEY WERE VERY INVOLVED. ALL THE DECISIONS. THERE'S THIRD-PARTY INSPECTION COMPANIES, KEEPING US UP TO SPEED AND ALL THAT. AND ALL BEING MONITORED. WITHIN BUDGET, AS KENDRA MENTIONED. WE ARE SITTING AT 47 MILLION .

THERE SEEMS TO BE SOME SAVINGS TO BE HAD YET, AND BUYOUT, AND CONTINGENCY, AND WE HAVE THAT SCOPE THAT WAS PREVIOUSLY DELETED TO TRY TO TRY TO GET IT ALL DONE WITHIN THE CURRENT BUDGET. WE ARE ABOUT SEVEN MONTHS INTO THE CONSTRUCTION OF THE PROJECT -- AN 18 MONTH DURATION. THERE HAVE BEEN CHALLENGES. WE ALL HAVE HAD A VERY WET SUMMER TO VICTORIA'S STANDARDS. WE HAVE TRIED TO MITIGATE THE BEST WE CAN. I PRESENTED IT TODAY IN OUR CEREMONY. WE HAVE BEEN ON THE SITE FOR 38 WEEKS. WE HAVE HAD PEOPLE ON SITE WORKING SATURDAY AND SUNDAY TO TRY TO MAINTAIN IT THE BEST WE CAN, THE SCHEDULE, DESPITE SOME OF OUR WEATHER IMPACT. SO 18% LOCAL PARTICIPATION. THAT IS JUST PEOPLE IN VICTORIA. SHE MEANT AND -- MENTIONED LESTER. IF YOU THROW IN CORPUS TO THAT, WE HAVE ANOTHER 10 MILLION OF THAT. ALMOST DOUBLE THAT PERCENTAGE, TRYING TO KEEP AS MUCH LOCAL PARTICIPATION AS WE CAN. WITHIN THAT 100 MILE RADIUS. WE WILL FOLLOW-UP WITH SOME OF THE CONSTRUCTION SITE ACTIVITIES THAT HAVE BEEN GOING ON. I CAN LET CJ TALK A LITTLE BIT, BUT YOU CAN SEE THE WEATHER ISSUES WE HAVE HAD.

>> ALL RIGHT. I'M CJ. I'M THE PROJECT SUPERINTENDENT.

APPRECIATE Y'ALL HAVING US HERE TODAY. WE HAVE 192 PEERS.

DURING THAT PROCESS, WE LOST PROBABLY 20 DRILLING DAYS. SO THROUGH PLANNING WITH OUR SUBS, AND ON-SITE TEAM, WE WERE ABLE TO GET SOME OF THOSE BACK BY BREAKING DOWN THE SMALLER SECTIONS TO TRY TO REACH THOSE GOALS INSTEAD OF JUST BUYING OUT BEER TRUNKS. THAT'S A TESTAMENT TO OUR TEAM ON THE SIDE, AND IT IS GOOD TO SEE THEM TRYING TO PULL THAT IN. WE HAD 1800 YARDS OF CONCRETE. WE STARTED OUR CONCRETE PAVING. IT WILL BE THE SITE PARKING, AND WE HAVE APPROXIMATELY HUNDRED

[02:20:01]

YOU HAVE THE PICTURE OF THE DRILL RIG AND THE PEER. A FEW OTHER PICTURES. A PRETTY WET SITE ON A RAIN DATE, BUT ALSO, MORNING, BEING PREPPED FOR CONCRETE. WE WILL LET THEM KNOW THAT WE WERE GOING TO BE POURING AT 3:00 THE MORNING. WE WANT TO THANK THEM FOR WORKING WITH THIS. HERE, WE HAVE A COUPLE OF VIDEOS.

THE CITY FROM WE CAN HAVE A GO.

>>

>> SPAWGLASS PUT THAT TOGETHER FOR THE CITY. BUT AT THE RATE THAT THE BUILDING WAS MOVING, THE COMMUNICATIONS FOLKS WORKED TO DO THAT QUICKLY. THE FOOTAGE WAS A WEEK AND HAVE A GO. MAYBE NOT EVEN THAT LONG. THEN, YESTERDAY, YOU ALL SAW THE BUILDING. HE HAD TO GO THERE.

[02:25:03]

>>

>> THIS ONE DOESN'T HAVE AS MUCH FUN MUSIC. THE EXTERIOR OF THE MUNICIPAL COURT AND THE ROOFING PLANNER -- THAT IS ALREADY A END. IT WILL PROTECT THE INSIDE OF THE FACILITY.

ALONG THE BACK, YOU SEE THE INSULATION BOARD GOING UP AND IN SOME PLACES, YOU WILL NOTICE, THE MORTAR HOAX. YOU WILL SEE THE STONE. IT'S ALREADY GOING UP.

>> YOU ARE BEGINNING TO TELL THAT SIDE WORK THAT HAS BEEN GOING INTO PREP FOR THE PARKING LOT. IN THE BACK. THAT WOULD BE THE FIRST AREA WHERE THEY GO DOWN.

>> YOU CAN SEE THE L SHAPE. THERE IS THE METAL DECK.

>> IT DIDN'T EXIST AT ALL A WEEK AND A HALF AGO.

THEY ARE MOVING VERY QUICKLY NOW. THIS IS MY OPPORTUNITY TO GIVE YOU A WARNING. THEY ARE GOING TO BE MOVING. THEY WILL FINISH THE EXTERIOR IT IS GOING TO LOOK LIKE IT WILL STOP. THEY ARE GOING INSIDE. IT IS MOVING QUICKLY. WE ARE GRATEFUL TO SPAWGLASS FOR THE TIME PUT IN, FOR THE EFFORT. NO CONTRACTORS LEFT WITH NOTHING TO DO. THEY HAVE DONE A GREAT JOB OF MANAGING THINGS. I'M GRATEFUL TO SPAWGLASS. I AM GRATEFUL TO THEM . WE ARE GRATEFUL TO YOU FOR APPROVING THE PROJECT AND HELPING US MOVE FORWARD. WE ANTICIPATE -- THE GROUNDBREAKING -- FALL OF NEXT YEAR. ANY QUESTIONS? ANYTHING TO TALK

ABOUT? >> THANK YOU, GENTLEMEN, FOR STICKING WITH THE MAJOR IDEALS. THANKS FOR BEING A GOOD

NEIGHBOR. THANK YOU. >> AND ON BEHALF OF COUNCIL, YOU KNOW, THE COLLABORATIVE EFFORTS THAT HAVE BEEN MADE DOES THE QUALITY HAS BEEN SUPER IMPRESSIVE. THE STATE OF THE CITY ADDRESS -- THE BIGGEST APPLAUSE WAS WHEN I TOLD EVERYBODY THAT THIS PROJECT WAS BOTH ON TIME AND WITHIN BUDGET.

SO OBVIOUSLY, OUR COMMITTEE CARES ABOUT THIS PROJECT.

PAYING ATTENTION AND WE APPRECIATE ALL THE EFFORT THAT YOU HAVE PUT INTO IT. THANK YOU.

>> IT HAS BEEN A GREAT TEAM EFFORTS AFFORD -- SO FAR. ALL THE STAFF HAVE BEEN GREAT TO WORK WITH.

>> VERY GOOD. THANKS. >> WE DO HAVE ONE MORE CITY MANAGERS REPORT. I KNOW THAT IT IS GETTING LATE, SO I APOLOGIZE FOR THAT. RECALL THAT WE TRIED TO KEEP THE FIRST MEETING IN OCTOBER SHORT. SO IT DID PUSH OUT SOME ITEMS. THAT IS WHY TONIGHT FEELS A LITTLE LONGER AND BUSIER THAN NORMAL. AND I KNOW THAT THE CHIEF IS ALSO HERE -- EAGER TO GET OUT OF HERE, SO I'M SURE HE WILL GO THROUGH IT VERY EFFICIENTLY.

[3. Propose adoption of a Bring Your Own Beverage (BYOB) Establishment Ord...]

>> THANK YOU, SIR. GOOD EVENING, COUNCIL. MAJOR AFTER-HOURS BRING YOUR OWN BEVERAGE ESTABLISHMENT ORDINANCE PROPOSAL IS WHAT WE ARE HERE TO PRESENT. THE PROBLEM IS THAT THERE IS NO RESTRICTIONS ON BYOB ESTABLISHMENT OPERATING AFTER 2:00 A.M. IN VICTORIA. OTHER ESTABLISHMENTS -- ONE MOMENT.

OTHER INCH -- ESTABLISHMENTS ARE REGULATED BY TABC. NEED TO

[02:30:08]

RECEIPT OF RESOURCES FOR YEARS. WE WOULD LIKE TO PROPOSE THAT THE ADOPTION OF A CITY ORDINANCE THAT PROHIBITS BYOB ALCOHOL ESTABLISHMENTS FROM OPERATING IN THE CITY OF VICTORIA BETWEEN 2:00 A.M. AND 7:00 A.M. THE ORDINANCE WOULD MAKE IT UNLAWFUL TO REMAIN ON THE PREMISES, INCLUDING THE PARKING LOT, BETWEEN 2:30 A.M. AND 7 A.M. THIS WOULD INCREASE SAFETY IN THE COMMUNITY AND OUR OFFICERS. PUNISHMENT WOULD BE BETWEEN ONE DOLLAR AND 500 FOR VIOLATIONS OF THIS CLASS C VIOLATION. 2:00 AND 4:00 IS THE WINDOW WE ARE FOCUSING ON. 57% OF THE CALLS FOR SERVICE OR DURING THAT WINDOW. INCIDENTS OR CASES ARE 56% WEAPONS VIOLATIONS. OUT OF 27, NINE OF THEM ARE OCCURRING BETWEEN 2:00 AND 4:00 A.M. ASSAULTS. ONLY 4%, BUT THE FIGHTS ARE 71%, WHICH, OVER HALF OF THEM, 36 OF THAT 51 OUR FIGHTS. BETWEEN THE 2:00 AND 4:00 A.M. HOURS.

THERE'S AN EXAMPLE. ONE OF THE CLUBS THAT WE HAVE CURRENTLY OPENED IN JUNE. SINCE THEN, THERE HAVE BEEN 26 CALLS. NINE OUR FIGHTS. EIGHT OF THOSE ARE FOR INTOXICATED INDIVIDUALS.

ARE PEOPLE REFUSING TO LEAVE, AND 13 PERCENT ARE DURING THAT 2:00 A.M. TO 4:00 P.M. -- A.M. WINDOW. THEY WILL LEAVE AN ESTABLISHMENT AT 2:00 A.M. BECAUSE THEY ARE REGULATED TO CLOSE AT:00 , AND THEN THEY WILL GO TO ANOTHER ONE OF THE VENUES AND DRINK ON AND GET MORE AND I SKATED, CAUSING MORE AND MORE PROBLEMS FOR OUR STAFF. OTHER CITIES THAT HAVE THESE ORDINANCES, AS YOU CAN SEE, THEY ARE NOT GOING TO READ THEM TO YOU, BUT IT SEEMS LIKE A MAJORITY OF THEM HAVE TO ESTABLISH IT. WE ARE TRYING TO GET AHEAD OF THE PROJECT. GET AHEAD OF WHAT THE PROBLEMS -- WE ARE SPENDING A LOT OF TIME IN THE AFTER HOURS CLUBS. THEY ARE HURTING OUR RESOURCES. THE SUMMARY IS, IT'S PRETTY EASY THAT BYOB ESTABLISHMENTS ARE ALLOWED TO OPERATE WITHOUT TABC OR LOCAL REGULATION. THE ORDINANCE WOULD PROHIBIT PARTICIPATION IN THESE ESTABLISHMENTS BETWEEN 2:00 A.M. AND 7:00 A.M. THE EFFECT WOULD BE INCREASED SAFETY TO THE OFFICERS AND TO THE COMMUNITY. TO THE COMMUNITY AND THE STRAIN ON RESOURCES. IF YOU NEED A DEFINITION OF WHAT A BYOB IS OR ANYTHING LIKE THAT .

>> I DO HAVE A QUESTION. HOW MANY ESTABLISH -- ESTABLISHMENTS ARE OPERATING AFTER 2:00 A.M. UNDER THE

DEFINITION YOU GIVE? >> THERE ARE THREE OR FOUR THAT WE HAVE IDENTIFIED. THEY POP UP, IN THE NICHOLS NUMBERED THE PUBLIC, AND IN THE CAUSE NUMBER IT RIGHT NOW, IT'S ABOUT THREE OR FOUR. I SEE, CURRENTLY, WE HAVE TWO THAT ARE PROBLEMATIC, IF YOU WILL. BUT I THINK THERE'S THREE OR FOUR. THEY CHANGE NAMES. THEY CLOSE. SO, YES.

>> WE NEED THIS ORDINANCE. >> IN TERMS OF THE CITIES HERE, I'M ASSUMING THAT -- AND YOU ARE LOOKING AT THIS. THESE HAVE MADE A DIFFERENCE FOR THESE CITIES AND FOR THESE FORCES IN TERMS OF NUMBER OF CALLS OR RESOURCES. ALL THE THINGS THAT

YOU MENTIONED. >> I CAN TELL YOU ONE THAT IS NOT ON THERE. THAT IS DALLAS. I WISH THEY HAD ONE. SPENDING TIME IN HOMICIDE, WE WOULD GO FROM THAT 2:00 TO 4:00 WINDOW, AND THAT IS WHEN THE KILLINGS WERE HAPPENING. I DON'T KNOW IF THAT IS AN EXAMPLE OF THIS. ARE THAT STAGE. IT CREATES ADDITIONAL PROBLEMS. WE NEED THIS ORDINANCE. THAT IS WHY I'M ADVOCATING WE DO SOMETHING TO GET OUT IN FRONT OF IT.

HOUSTON, NOT UNTIL 23. BUT THEY ARE SEEING THE PROBLEM. WE ARE ALREADY SEEING THAT PROBLEM HERE. IT IS DEVELOPING

[02:35:03]

DRAMATICALLY. >> A QUESTION IN TERMS OF MOVING FORWARD, IF WE WERE TO MOVE FORWARD WITH SOME LIKE THIS, AND ASSUMING IT IS AN ORDINANCE. IT WILL TAKE YOUR EXPERT WHAT KIND OF TIMEFRAME WOULD WE BE LOOKING AT?

>> THEY HAVE A DRAFT ORDINANCE THAT WE HAVE BEEN WORKING WITH THE CHIEF AND OUTSIDE COUNCIL TO DRAFT. THERE'S A LITTLE BIT MORE WORK THAT NEEDS TO BE DONE, BUT I THINK IT IS VERY REASONABLE, ASSUMING THAT THE CHIEF AGREES THAT WE CAN BRING IT BEFORE COUNCIL. THE FIRST READING AT THE NEXT MEETING, TO GIVE US A CHANCE TO PRESENT IT TO YOU GUYS. SECOND, THE SECOND MEETING IN NOVEMBER WOULD BE THE SECOND AND THIRD READING.

AND THEN IT WOULD HAVE TO WAIT 10 DAYS TO GO INTO EFFECT, SO YOU ARE LOOKING AT BASICALLY, EARLY TO MID DECEMBER. AT THIS POINT, ASSUMING THAT IT WENT AS IT NORMALLY DOES.

>>

>> I AGREE. >> FOR ARGUMENTS SAKE , BECAUSE I DO FULLY AGREE -- I WANT TO EXPLORE THIS A LITTLE BIT MORE.

AND TO EXPAND ON WHAT COUNCIL ASKED REGARDING THE NUMBER OF ESTABLISHMENTS, ARE THERE ANY ESTABLISHMENTS THAT HAVE LONGEVITY WITHOUT THAT TYPE OF NEED FOR CALL, OR COULD IT INCLUDE SOME SORT OF EXCLUSION FOR A PARTICULAR ESTABLISHMENT LIKE THE TIME IN BUSINESS, AND THAT BYOB STARTS -- STOPS AT A CERTAIN TIME, AND MAYBE THEY CAN STAY LONGER IF THEY HAVE NOT HAD ANY POLICE CALLOUTS OR ANY TYPE OF NEGATIVE. I AM NOT

ADVOCATING FOR IT. I AM ASKING. >> THE ORDINANCE -- THE ROUGH DRAFT FOR THE PRELIMINARY -- IF THIS ANSWERS YOUR QUESTION, IT WILL NOT AFFECT THE PERMANENT RESIDENCE. SO THERE ARE

BUILT-IN RESTRICTIONS. >> WE HAVE BUILT AND

EXCEPTIONS. >> YES.

>> THANK YOU. >> ABSOLUTELY.

>> CHIEF, THANK YOU VERY MUCH. LOOK FORWARD TO SEEING WHAT YOU GUYS COME UP WITH, AND BRING TO US, IT SOUNDS LIKE SOMETHING THAT WE NEED TO TAKE A SERIOUS LOOK AT. WITH THAT, THEN, I THINK WE HAVE REACHED THE END OF OUR AGENDA. I UNDERSTAND THAT WE WILL HAVE AN EXECUTIVE SESSION?

>> I BELIEVE WE STILL DO, YES SIR.

>> OKAY. WE WILL ADJOURN THE PUBLIC MEETING. WHY DON'T YOU

[H. Executive Sessions:]

SESSION AT THE TIME. >> RECESS FOR EXCITING SESSIO

* This transcript was compiled from uncorrected Closed Captioning.