May 05, 2026 City Council

[A. CALL TO ORDER]

[00:00:09]

GOOD EVENING EVERYONE. WELCOME TO CANCEL MEETING FOR TUESDAY MAY FIFTH. PLEASE CALL ROLLS.

>> IF YOU WOULD PLEASE RISE, 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.

[1. Announcements/Reminders:]

>> THANK YOU, PLEASE BE SEATED. WELCOME EVERYONE HERE CAN WE HAVE A FULL HOUSE TONIGHT. WE WILL JUMP RIGHT INTO THE BUSINESS OF THE EVENING AND WE WILL START WITH ANNOUNCEMENTS AND REMINDERS FOR MR. GARZA, WHAT DO YOU HAVE FOR US THIS

EVENING? >> GOOD EVENING MAYOR AND COUNCIL. I HAVE A COUPLE OF ANNOUNCEMENTS FOR YOU THIS EVENING. ON BEHALF OF PUBLIC WORKS THE CITY OF VICTORIA WILL BE COMING ANNUAL CLEARING CONVERSION STARTING MAY 15TH AND WE'LL SWITCH BACK TO ITS USUAL CHLORINE DISINFECTION ON JUNE FIRST.

THIS IS AN ELEVATED FORM OF CHLORINE TREATMENT THAT TAKES PLACE ONCE PER YEAR FOR PREVENTATIVE MAINTENANCE DIALYSIS PATIENTS MAY NEED TO CHANGE TREATMENT SCHEMES FOR DIALYSIS MACHINES AND CONDITIONING WATER FOR FISHERIES OR AQUARIUMS ... PROCESSES AS WELL RESIDENTS WILL NOT NOTICE ANY DIFFERENT THAN THE WATER ALTHOUGH SOME CHANGES IN TASTE AND ODOUR OR POSSIBLE. CONSUMING WATER DOES NOT CARRY ANY HEALTH RISKS. THE CITY'S WATER SYSTEM IS CURRENTLY MAINTAINING HIGH WATER QUALITY WITH NO SIGNS OF NITRIFICATION. YOU MAY RECALL THAT WAS AN ISSUE LAST YEAR. THE FACT THAT WE'RE IMPLEMENTING THIS SOONER THAN NORMAL IN ADDITION NOT AS LONG AS NORMAL, NORMALLY WOULD BE THE MONTH OF JUNE.

NOW WE'RE DOING IT FOR THE SECOND HALF OF MAY.

IT SPEAKS TO THE PROACTIVE MEASURES THAT STAFF HAS TAKEN TO HELP MAINTAIN THE HEALTH OF THE WATER SYSTEM.

SOME OF THOSE STEPS TAKEN OVER THE PAST YEAR INCLUDE INSTALLATION OF AUTOMATIC FLUSHERS FOR MORE FREQUENT AND REGULAR FLUSHING. USE OF TANK MIXERS TO STORE OR MIX WATER, PREVENTING GROWTH OF BACTERIA.

MORE FREQUENT CLEARING TOXINS WITH LEVELS OF THE SYSTEM BEING TESTED MULTIPLE TIMES PER DAY. THESE MEASURES HAVE NOW LED US TO AGAIN, NOT NECESSITATED A 30 DAY CHLORINE CONVERSION SOLELY A 15 DAY CHLORINE CONVERSION. FOR MORE INFORMATION CONTACT PUBLIC WORKS AT 361-485-3380 OR CONTACT THE SURFACE WATER TREATMENT PLANT AT 361-485-3416. LASTLY ON BEHALF OF THE COMMUNICATION DEPARTMENT OF THE CITY OF VICTORIA'S TOWN PODCAST WILL PREMIERE AT LUNCHTIME TOMORROW MAY SIXTH FEATURING VICTORIA ISD SUPERINTENDENT SHERLOCK.

RESIDENTS ARE ENCOURAGED TO TUNE IN TO LEARN MORE ABOUT WHAT'S AHEAD FOR PUBLIC SCHOOLS. THAT'S WHAT I HAVE FOR THIS

[2. Public & Employee Recognitions:]

EVENING. >> ALL RIGHT THANK YOU MR. GARZA. LET'S JUMP TO ITEM B TWO IMPLEMENTING PUBLIC RECOGNITION WHICH WE HAVE QUITE A FEW THIS EVENING STARTING WITH THE FIRST ONE NATIONAL NURSES WEEK AND

NATIONAL HOSPITAL WEEK. >> THE HEALTH CARE SYSTEM JOIN THE ASSOCIATION IN CELEBRATING NATIONAL NURSES WEEK, MAY SIXTH THROUGH 12 FOR THE POWER OF NURSES RECOGNISING THE PROFOUND IMPACT OF OUR DEDICATED AND COMPASSIONATE NURSES WHEREAS WE ARE CALLED TO HONOUR AN UPLIFTED DEDICATION RESILIENT AND EXCELLENCE OF A NURSING WORKFORCE SERVING PATIENTS AND FAMILIES ACROSS OUR COMMUNITY AND TO EXPRESS OUR GRATITUDE WITH THE COLLECTIVE AND HEARTFELT THANK YOU WHEREAS NATIONAL HOSPITAL WEEK OBSERVED MAY TENTH THROUGH 16TH 2026 IS AN ANNUAL CELEBRATION DEDICATED TO RECOGNISING AND HONOURING THE VITAL ROLE OF HOSPITALS PROVIDING HIGH QUALITY COMPASSIONATE CARE TO VICTORIA AND THE SURROUNDING COMMUNITIES AND WHEREAS BOTH NATIONAL NURSES WEEK AND NATIONAL HOSPITAL WEEKS SERVE AS A TRIBUTE TO THE REMARKABLE INDIVIDUALS WHOSE DEDICATION, SKILL AND COMPASSION DEFINE OUR LOCAL HOSPITALS AND WHERE CITIZENS MEDICAL CENTER NEED TO HEALTH CARE SYSTEM HEALTH PILLARS OF STRENGTH, HEALING AND HOPE FOR THE REGION, DELIVERING EXCEPTIONAL HEALTH CARE THROUGH ITS DEVOTED PHYSICIANS NURSES STAFF AND VOLUNTEERS WHEREAS THE TEAMS AT THE THREE HOSPITALS CONSISTENTLY GO ABOVE AND BEYOND TO SERVE PATIENTS WITH DIGNITY AND EXCELLENCE, INNOVATION AND COLLABORATION TO IMPROVE HEALTH CARE OUTCOMES AND ENHANCE

[00:05:01]

NOW THEREFORE DUANE CROCKER THE MAYOR OF CITY VICTOR VICTORIA I RECOGNISE THAT THE NATIONAL NURSES WEEK AND PROCLAIM THE WEEK OF MAY TENTH THROUGH 16TH 2026 AS NATIONAL HOSPITAL WEEK IN VICTORIA TEXAS AND ENCOURAGE ALL CITIZENS TO JOIN ME IN RECOGNISING AND CELEBRATING THE DEDICATED TEAMS OF CITIZEN MEDICAL CENTER VICTORIA HEALTH CARE SYSTEM ALONG WITH THE HEALTH CARE WORKERS ACROSS OUR COMMUNITY FOR THEIR OUTSTANDING CONTRIBUTIONS TO OUR HEALTH AND WELL-BEING.

[APPLAUSE] >> MAYOR AND CITY COUNCIL ON BEHALF OF ALL OF US, ALL ORGANISATIONS AND ALL THE HEALTH CARE WORKERS IN THIS AREA THAT ARE DEDICATED TO SERVING THE PATIENTS AND DOING THAT INEQUALITY MATTER MAKING SURE THEY GET EXCELLENT OUTCOMES WE THANK YOU FOR YOUR RECOGNITION OF THEM IT'S A GREAT HONOUR FOR US AND WE APPRECIATE IT VERY

MUCH SO THANK YOU. >> THANK YOU, MIKE.

[APPLAUSE] >> I'LL ECHO A LOT OF THAT THANK YOU ALL FOR RECOGNISING THE HEALTH CARE STAFF.

WHAT THEY DO THEY IN DAY OUT TO SERVE THIS COMMUNITY TO GO ABOVE AND BEYOND TO SACRIFICE TO THEIR FAMILIES IT MEANS A LOT SO THANK YOU FOR THE CELEBRATION. THANK YOU.

>> WELL-DESERVED RECOGNITION FOR ALL THREE HOSPITALS AND THANK YOU FOR THE EXCELLENT CARE PROVIDED TO OUR COMMUNITY WE APPRECIATE IT. ALL RIGHT MOVING ON OUR NEXT

ITEM IS TRAVEL AND TOURISM. >> TRAVEL AND TOURISM PROVIDES SIGNIFICANT CULTURAL BENEFITS FOR THE CITY OF VICTORIA AND WHEREAS MEETINGS, EVENTS, LEISURE AND TRAVEL SPORTS EVENTS ARE ALL KEY COMPONENTS TO VICTORIA'S ECONOMY AND WHEREAS MANY VICTORIA'S HOSPITALITY AND TOURISM BUSINESSES ARE CHARACTERISED BY THEIR WELCOMING SOUTH TEXAS CHARM FORMING THE FOUNDATION THAT MAKES VICTORIA UNIQUE AND MEMORABLE DESTINATION AND WHEREAS VISITORS RELISH THE MANY TOURISM OFFERINGS IN VICTORIA INCLUDING THE MUSEUM OF THE COASTAL, THE TEXAS ZOO, RIVERSIDE PARK THE CHILDREN'S DISCOVERY MUSEUM, LEO J. CENTRE FOR THE PERFORMING ARTS AND VIBRANT COLLECTION OF HISTORIC HOMES CHURCHES AND CULTURAL SITES AND WHEREAS THE RICH HERITAGE OF THE CITY OF VICTORIA ENHANCES ITS REPUTATION AS DISTINCTIVE MEMORABLE TRAVEL DESTINATION DRAWING FAMILIES EDUCATORS AND LEISURE ENTHUSIASTS TO EXPERIENCE THE CREATIVITY AND WONDER REFLECTS OUR COMMUNITY AS WE ACKNOWLEDGE THAT ALL TRAVEL WHETHER RELATED TO LEISURE, BUSINESS, SPORTS IS BENEFICIAL AND WHEREAS WELCOMING VISITORS FROM NEAR AND FAR ALWAYS HAS BEEN AND ALWAYS WILL BE AN ENDURING COMMITMENT OF THE TRAVEL INDUSTRY AND VICTORIA. AND I THEREFORE I DUANE CROCKER, MAYOR OF VICTORIA TEXAS HEREBY PROCLAIM VICTORIA AS TOURISM FRIENDLY COMMUNITY AND URGE ALL CITIZENS TO JOIN THE CITY COUNCIL CITY STAFF AND ME IN RECOGNISING THE POSITIVE EFFECT TRAVEL HAS ON THE NATION, TEXAS AND VICTORIA'S ECONOMIC

PROSPERITY AND IMAGE. >> THANK YOU MAYOR AND COUNCIL FIRST OF ALL I WANT TO THANK YOU ALL CITY COUNCIL AND CITY LEADERSHIP FOR YOUR SUPPORT OF ALL THAT WE DO TO HELP OTHERS DISCOVER VICTORIA. THIS PROCLAMATION IS ONE OF OUR STEPS TO BE DECLARED A TOURISM FRIENDLY TEXAS COMMUNITY BY STATE OF TEXAS OF ECONOMIC DEVELOPMENT TOURISM.

AS YOU MAY NOT KNOW, WE'RE ALREADY A FILM FRIENDLY AND MUSIC FRIENDLY CERTIFIED COMMUNITY AND I ALSO WANT TO TAKE AN OPPORTUNITY TO THANK ALL OF OUR TOURISM PARTNERS THOSE ARE OUR HOTELS, OUR ATTRACTIONS, ARTS AND CULTURAL NON-PROFIT, HISTORIC PRESERVATION, RESTAURANT, RETAIL, ORGANISERS WHO WORK TIRELESSLY TO PROVIDE EXCITING THINGS FOR US TO DO IN VICTORIA WITHOUT THEM OUR JOB WOULD BE MUCH MORE DIFFICULT.

SO THANK YOU ALL FOR YOUR SUPPORT AND THANK YOU TO ALL OF OUR TOURISM PARTNERS FOR EVERYTHING THEY DO.

[APPLAUSE] >> THANK YOU.

LAST PROCLAMATION OF THE EVENING IS PUBLIC SERVICE RECOGNITION

WEEK. >> WHEREAS THE PEOPLE OF THE CITY OF VICTORIA SERVE EVERY DAY PUBLIC SERVANTS AT EVERY LEVEL IN THE EXECUTIVE LEGISLATIVE AND JUDICIAL BRANCHES OF GOVERNMENT AND THESE UNSUNG HEROES THROUGH THEIR WORK THAT KEEPS OUR

[00:10:02]

>> THANK YOU MAYOR AND THANK YOU COUNCIL FOR YOUR SUPPORT OF NOT ONLY MYSELF AND THE EXECUTIVE TEAM, BUT ALSO FOR THE OVER 650 EMPLOYEES THAT WORK FOR ORGANISATION.

WE'RE TRULY BLESSED TO WORK WITH THE COUNCIL THAT IS TRULY SUPPORTIVE AND UNDERSTANDING OF OUR NEEDS AND THE IMPORTANCE OF BEING AN EMPLOYER OF CHOICE. THE IMPORTANCE OF INVESTING IN EMPLOYEE COMPENSATION AND BENEFITS LIKE FACILITIES AND SO ON AND SO FORTH. WE'RE TRULY BLESSED SO THANK YOU FOR YOUR SUPPORT AND I HOPE YOU'RE ABLE TO JOIN US FOR APPRECIATION MONTH ON FRIDAY, THAT'S ALWAYS A GREAT TIME AS WE GET TO INTERACT WITH EMPLOYEES FROM ACROSS THE DIFFERENT DEPARTMENTS. THIS WEEK IS TRULY INTENDED TO RECOGNISE FOLKS FROM ALL DEPARTMENTS.

ALWAYS LIKE TO POINT OUT THE FACT THAT OUR EMPLOYEES MAKE UP FUNCTIONAL AREAS THAT NORMALLY DON'T GO AS HIGHLY NOTICED EVERYBODY KNOWS POLICE OFFICERS FIREFIGHTERS, MAYBE EVEN SOME PUBLIC WORKS FOLKS, BUT WE HAVE UNSUNG HEROES AND WE TALK ABOUT THAT EVERY YEAR THE FOLKS WORKING IN SURFACE WATER TREATMENT PLANT COLLECT WASTEWATER TREATMENT PLANT, COMING OUT AT 3:00 A.M. TO ENSURE WE MAINTAIN WATER PRESSURE, THERE ARE SO MANY THINGS THAT GO ON BEHIND THE SCENES THAT I TAKE AS A COMPLIMENT THEY'RE TAKING FOR GRANTED BECAUSE IT MEANS WE'RE DOING A GREAT JOB AND ENSURING THE QUALITY OF LIFE REMAINS INTACT.

SO THANK YOU FOR THE SUPPORT IN DOING THAT.

>> THANK YOU MR. GARZA. WE APPRECIATE THE DILIGENCE AND PROFESSIONALISM OF OUR EMPLOYEES AND HAPPY TO GIVE THIS RECOGNITION THIS WEEK. WELL EARNED.

THE LAST LISTED ITEM UNDER PUBLIC EMPLOYEE RECOGNITION IS MINE, ACTUALLY. I SEE MY NAME ON THERE.

THIS IS RECOGNITION OF MY 2025-2026 YOUTH COUNCIL.

AS SOME OF YOU MAY KNOW THE YOUTH COUNCIL COMPRISED OF YOUNG MEN AND LADIES WHO WERE JUNIORS AND SENIORS IN OUR LOCAL HIGH SCHOOLS AND HERE IN VICTORIA AND WE STARTED IN THE FALL.

THEY APPLIED OVER THE SUMMER AND WE STARTED IN THE FALL WITH A SERIES OF MEETINGS AROUND DIFFERENT ASPECTS OF THE CITY, LOCAL GOVERNMENT. WE TOURED THE SURFACE WATER TREATMENT FACILITY. WENT TO THE PUBLIC SAFETY HEADQUARTERS, MET WITH THE POLICE DEPARTMENT CLEARED THE FIRE STATION AND THE ALARM WENT OFF THEN THEY SAID SORRY WE HAVE TO GO. SO WE HAD PARTS OF THE FIRE STATION -- BUT ALSO THERE'S A VOLUNTEER COMPONENT TO THIS.

THIS TEAM HELPED OUT A COUPLE EVENTS, VOLUNTEERING, AND SO REALLY THROUGH THAT PROCESS I LEARNED A LOT ABOUT THE CITY AND GOVERNMENT. WE MET WITH MICHAEL CLEMENS OFFICE, GAVE A VERY NICE VIDEO AND KIND OF TALKED ABOUT HOW -- LEARN MORE ABOUT ON THE FEDERAL LEVEL AND LOCAL LEVEL WORK TOGETHER. SO IT WAS A REALLY GOOD GROUP HERE WE HAD A BIG GROUP THIS YEAR.

I THINK 23 -- OR 24 INSTEAD OF -- WE WANTED TO RECOGNISE EACH OF THEM TONIGHT WITH A LETTER OF RECOMMENDATION FROM MYSELF OR COMPLETION OF THE COURSE AND ALSO WITH A CERTIFICATE.

SO THEY ARE HERE AND I'M GOING TO GO HAND THOSE OUT.

PLEASE TAKE YOUR CALL THEM UP INDIVIDUALLY.

>> EXCUSE MY VOICE. FOR THOSE STUDENTS, I'M CALLING YOU IN ALPHABETICAL ORDER. YOUR LAST NAME IS IN THE BACK.

SO FIRST I HAVE A SENIOR THIS YEAR, STEVE.

[00:15:01]

[APPLAUSE] AND THIS ONE SNUCK IN, MADELINE CROCKER. BERLIN ESPINOSA.

KATE. [APPLAUSE] NEXT WE HAVE PAGE, ALSO A SE SENIOR.

AND THEN WE HAVE HAILEY GON GONZALEZ.

[APPLAUSE] AND THEN I HAVE EMILY.

[APPLAUSE] AND MINDY JANE.

[APPLAUSE] THEN WE HAVE SOPHIE COSTELLO.

[APPLAUSE] MY NEXT ONE THAT SNUCK IN, ABBY LEONARD. [APPLAUSE] I MISSED IT SOPHIE AND ABBY ARE ALSO SENIORS I MISSED THAT MY APOLOGIES. I HAVE KIRSTEN, ALSO A SENIOR.

AND NUNEZ, ALSO A SENIOR. [APPLAUSE] ARIA PATEL, ALSO A SENIOR. [APPLAUSE] BILLY TALLEY. [APPLAUSE] CIARA THOMAS, OUR PRESIDENT THIS YEAR, AND A SENIOR.

[APPLAUSE] THANK YOU.

THEN WE HAVE DANIELLE, A JUNIOR AND PRESIDENT-ELECT.

SHE WILL BE OUR PRESIDENT NEXT YEAR.

[APPLAUSE] SADIE WELDER.

[APPLAUSE] AND THEN ELLIE WEST A SENIOR.

[APPLAUSE] LEXI WILLIAMS, ALSO A SENIOR.

[APPLAUSE] [LAUGHING] AND THEN OLIVIA YOUNG, ALSO A SENIOR.

[APPLAUSE] LAST BUT NOT LEAST I HAVE HAILEY, A JUNIOR. SHE COULD NOT MAKE IT.

I DON'T WANT TO SAY -- FULL OF KIDS GOING TO EVERY SCHOOL YOU CAN THINK OF. IT'S REALLY COOL TO SEE THE STUFF THEY ARE DOING. THANK YOU.

NOW LET'S GO GET PIZZA AT. [LAUGHING]

[APPLAUSE] >> CONGRATULATIONS TO ALL OF YOU IT'S BEEN A GREAT YEAR LOOKING FORWARD TO ANOTHER YOUTH COUNCIL NEXT YEAR AT. I'M SORRY I'M MISSING OUT ON THE PIZZA, BUT YOU GUYS ENJOY. LET'S GO AHEAD AND MOVE ON DOWN -- ACTUALLY, MR. GARZA, DO YOU HAVE ANY OTHER PUBLIC EMPLOYEE

[3. Items from Council:]

RECOGNITIONS? >> NO.

>> AHEAD OF YOU THIS EVENING. >> I HAVE ONE.

I WOULD LIKE TO REQUEST THAT WE TALK ABOUT SPECIFICALLY THE WEST OF SEABISCUIT AND SECRETARIAT. I WOULD LIKE TO JUST PUT IT ON AN AGENDA ITEM IN THE FUTURE AND THAT WAY WHEN WE SEE IT ON THE

[00:20:02]

COME TALK ABOUT IT. >> OKAY.

[4. Citizen Communication:]

I THINK THEY'RE BLOCKED FROM BEING ABLE TO GET UP HERE.

I WOULDN'T DO THAT TO YOU, SIR. COME ON UP.

>> GOOD EVENING MAYOR AND CITY COUNCIL.

I LIVE AT 2107 AND JORDAN. THEY HAD -- BEAUTIFUL JUST RECENTLY ON SATURDAY, I DIDN'T GO TO IT BECAUSE I'M TRYING TO BRING MY A 1C DOWN AND THEY KEEP BRINGING ALL THESE DOUGHNUTS AND I DIDN'T WANT TO BE TEMPTED. BUT THEY DO HAVE SOME DOUGHNUTS HIGH IN FIBRE AND STUFF LIKE THAT FOR THE CITY COUNCILLOR.

THANKS FOR THE NURSES. IT'S NURSES WEEK.

THEY BROUGHT MY A 1C DOWN ONE POINT IN 90 DAYS SO THANK YOU FOR THE REGISTERED DIETITIANS. I HAD A -- THEY HAD WILD THYME AN END BRAN OR I AND BROCCOLI AND A DIET CUPCAKE WITH 0% SUGAR FOR THE ICING. SO I APPRECIATE THAT.

ANY WAY, ON 22 '07 CHEQUER STREET, THE HOMEOWNER LEAVES THE GATE OPEN AND IF HE SHUTS IT THERE'S A GAP FOR DOGS.

DOGS ARE STILL COMING OUT AND STUFF AND THEY ARE FAMOUS FOR KAB25 ADDRESSING THIS AND THERE'S PICTURES ON CAB 25 FILMING ANIMAL CARE SERVICES GETTING THESE BIG OLD DOGS AND BIG NETS AND SEVERAL MONTHS LATER, STILL HAS TAKEN CARE OF IT AND IT'S THE POWER AND TRASH PRACTICALLY TO THE CEILING AND CODE ENFORCEMENT CITED THEM BUT THEY DON'T HAPPEN TO CARRY IT THROUGH. I GUESS THE LEGAL DEPARTMENT WOULD HAVE TO SUE THEM OR SOMETHING TO TAKE CARE OF IT BUT HE DON'T WANT TO TAKE CARE OF THE DOGS.

HE DON'T WANT TO TAKE CARE OF THE TRASH AND HE COULD CARE LESS. IS IT A DANGER TO THE NEIGHBOURS -- RIGHT NOW THERE'S LOOSE DOGS RUNNING ALL OVER THE PLACE AND NO ONE IS DOING ANYTHING. KAB25 DID HELP ANIMAL CARE SERVICES LAST YEAR AND, YOU KNOW, I GUESS SINCE MARK IS GONE HE'S IN THE CLEAR, BUT WE HAVE ANOTHER DIRECTOR.

SO I DON'T THINK THEY'RE GOING TO LET HIM GET AWAY WITH IT BUT I DO WISH SOMEONE COULD TAKE CARE OF IT BECAUSE THERE'S ALSO A LEGAL DUMPING -- DUMPING SOFAS, THE DUMPSTER AT KITCHEN AND AN ADVANCE AUTO SALES, ADVANCED AUTO PARTS.

THEY DUMPED A SOMETHING IN THE DUMPSTER AND THEY WISH PEOPLE WOULD STOP DOING THAT BUT I DO APPRECIATE THE NURSES.

THERE'S A TEAM OF ABOUT 12 REGISTERED DIETITIANS AND REGISTERED NURSES HELPING ME TO GET MY A 1C DOWN BECAUSE I'M TRYING TO GET IT DOWN ONE MORE NOTCH.

I APPRECIATE EVERYTHING. HAVE A GOOD EVENING I APPRECIATE

IT. >> THANK YOU OKAY GOOD LUCK TO

[D. Consent Agenda:]

MISS HILBRICH. >> I DO WANT TO SEE THE ADOPTION OF THE MEETING MINUTES ITEM D TWO IS AN ORDINANCE AMENDING CHAPTER 14 OCCUPATIONAL LICENSES, TAXES AND REGULATIONS OF THE CITY OF VICTORIA CODE OF ORDINANCES AND ADDING ARTICLE IN 11, SHORT TERM RENTALS, THIS ITEM IS ON SECOND AND THIRD READING. ITEM D THREE IS A RESOLUTION OF UTILITY REIMBURSEMENT AGREEMENT WITH KOREA DEVELOPMENT LP IN THE AMOUNT NOT TO EXCEED 500000 PER ITEM D FOUR IS A RESOLUTION DESIGNATING THE CITY MANAGER AS THE AUTHORISED OFFICIAL FOR THE 2027 MOTOR VEHICLE CRIME PREVENTION AUTHORITY GRANT, DESIGNATING SERGEANT ROGERS AS A PROGRAM DIRECTOR AND DESIGNATING ASSISTANT CITY MANAGER GILBERT AS THE FINANCIAL OFFICER ITEM D FIVE RESOLUTION OF LOCAL COOPERATION CONTRACT WITH THE UNIVERSITY OF TEXAS FOR REGIONAL SECURITY OPERATION CENTER SERVICES ITEM D SIX IS A RESOLUTION APPROVING THE CITY OF VICTORIA INVESTMENT A LIST OF QUALIFIED BROKERS.

>> DO WE HAVE A MOTION ON THE CONSENT AGENDA?

>> MOTION TO APPROVE AS READ. >> I HAVE A MOTION IN A SECOND

ALL IN FAVOUR SAY I. >> I I.

[1. Award the 2026 Street Improvement Project to Clark Construction of Tex...]

>> THAT PASSES. LET'S JUMP TO ACTION ITEMS AND I HAVE ONE ITEM THIS EVENING. ITEM E ONE.

[00:25:02]

>> IS A RESOLUTION AWARDING THE 2026 STREET IMPROVEMENT PROJECT TO CLARK CONSTRUCTION OF TEXAS INCORPORATED AND THE AMOUNT OF

$1,472,543.42. >> WELCOME.

>> GOOD EVENING. THIS PROJECT CAME ABOUT BECAUSE OF RESIDENTIAL STREET PROJECT FOR FISCAL YEAR 2026 CAME IN UNDER BUDGET AS DID OUR FAIR SHARE PROJECT.

WE TOOK THOSE EXCESS FUNDS BUT THEN -- PUT THEM TOGETHER AND CAME UP WITH THIS PROJECT BECAUSE WE HAVE ABOUT A MILLION DOLLARS FOR A PROJECT FOR OUR PROJECT AREA IS UNDER -- EDINBURG STREET FROM 1100 EDINBURG TO NAVARRO.

SUBDIVISION PHASES ONE AND TWO, SUBDIVISION, THOMPSON, BENNETT, WALTER AND ALI ROADS, TRADEWIND TERRACE, ABBOTSFORD EDITION.

WE HAVE ALSO A COUPLE OF ALTERNATE BIDS ON BROWN STREET ON THE ONE LAND AND A TERRORIST ONE BID WAS RECEIVED FROM CLARK CONSTRUCTION TEXAS, THEIR BEST BID CAME IN AT $1,835,538.70.BEN NEGOTIATIONS WITH CLARK CONSTRUCTION TO REDUCE BOTH THE SCOPE AND THE COST OF THE PROJECT WE WERE ABLE TO NEGOTIATE THE SAVINGS OF $362,995.28 IN DOING THAT CLARK WE HAD TO REMOVE THE TERRACE FROM THE PROJECT.

ALSO WE DID NOT AWARD ANY OF THE ALTERNATE SITE TERRACE ON BROWN AND BROWN STREET. STAFF RECOMMENDED THE CONTRACT BE AWARDED TO CLARK CONSTRUCTION OF TEXAS FOR THE NEGOTIATED AMOUNT $1,472,543.42. THIS PROJECT WILL BE COMPLETED WITH 20270 DAYS. TRADEWINDS TERRACE OR PULLED FROM THIS PROJECT WE ANTICIPATE ADDING THEM IN OUR FISCAL YEAR 27 KICK THE PROGRAM AS ADDED ULTIMATE, EDINBURG STREET, WE WILL BE RE-EVALUATING AFTER THE WAR TO DETERMINE WHETHER TO KEEP THIS IN A PROJECT OR REPLACE IT WITH A DIFFERENT STREET.

ANY QUESTIONS? >> ANY QUESTIONS?

>> AND THE FUNDING FROM THIS CAME IN FOR THE FUNDING THROUGH

THE PROJECT, CORRECT? >> YES.

>> VERY GOOD. ANY QUESTIONS? SEEING NONE, ACCEPTING MOTIONS WITH RESPECT TO ITEM E ONE.

>> A MOTION TO APPROVE. >> I HAVE A MOTION AND SECOND ANY DISCUSSION OF ITEM E ONE? ALL IN FAVOUR SAY I.

[1. Fiscal Year 2024–2025 Annual Comprehensive Financial Report. Wesley Ja...]

THIS EVENING. >> PRETTY IMMEDIATE IN

SUBSTANCE. >> ABSOLUTELY.

SO WE HAVE AN OVERVIEW OF THE 2025 AUDIT AND THEN I'LL BE PROVIDING AN OVERVIEW OF THE CITY COUNTY AGREEMENT.

SO TO KICK OFF OUR FIRST TOPIC I WANT TO TURN OVER TO WESLEY.

>> GOOD EVENING MAYOR AND COUNCIL.

THIS IS ON THE COMPLETION OF THE AUDIT THE FINANCIAL STATEMENTS FOR THE YEAR ENDING SEPTEMBER 30TH 2025 PICK THEY PERFORMED THE AUDIT, COPIES HAVE BEEN POSTED TO OUR WEBSITE AND DELIVERED TO THE APPROPRIATE AS WAS DONE IN APRIL TO COMPLY WITH ALL FILING REQUIREMENTS. PARTNER TO GIVE US AN OVERVIEW OF THE AUDIT PROCESS AND THE REPORT.

>> GOOD EVENING, WELCOME. >> THANK YOU.

MAYOR COUNCIL THANK YOU ALL FOR HAVING ME HERE AS MELISSA, MC AND PARTNER WITH THE FARMERS. AS WESLEY STATED I'M HERE TO PRESENT THE AUDIT RESULTS FOR THE CITY'S FINANCIAL AUDIT ENDING SEPTEMBER 30TH OF 2025. SO THIS EVENING, JUST TO -- THERE YOU GO. I WILL DO A BRIEF INTRODUCTION OF THE AUDIT TEAM HERE CAN GIVE YOU THE AUDIT RESULTS FOR THE

[00:30:06]

WE RECEIVED THE REQUIRED CPE HOURS EVERY YEAR.

IN ADDITION, OUR FIRM HAS TO UNDERGO A PEER REVIEW EVERY THREE YEARS. THE LAST PEER REVIEW WE RECEIVED WAS IN 2023. WE WERE UP FOR ANOTHER PEER REVIEW FOR THIS YEAR IN 2026. A PEER REVIEW IS AN OVERVIEW OF OUR FIRM'S QUALITY CONTROL STANDARDS AS WELL AS THE FIRM'S QUALITY CONTROLS AUDIT PROCESS THAT WE DO HERE THERE IS A BIG SAMPLE THEY DO OF OUR AUDIT ENGAGEMENTS AND THEN ALSO LOOK AT THE PRODUCT REPRODUCED TO MAKE SURE IT ADHERES TO THE REQUIRED STANDARDS. AND WE'VE HAD NO FINDINGS ON

THOSE. >> AS MENTIONED, WE ISSUED OUR ENGAGEMENT -- OUR AUDIT OPINION LETTERS IN APRIL 2026.

THE CITY RECEIVED AN UNMODIFIED OPINION OR CLAIMED OPINION WHICH IS THE SAME FORM OF OPINION THE CITY RECEIVED IN THE PAST STATEMENTS HERE THERE WERE NO FINDINGS IN INTERIM CONTROLS OVER FINANCIAL REPORTING AND ALSO JUST TO MAKE NOTE THE CITY ONCE AGAIN COMPLETED AN ANNUAL COMPREHENSIVE FINANCIAL REPORT AND THIS IS A TOUGH TASK. I LOOK TO THE, JUST TO LET YOU ALL KNOW, THAT REPORT, THERE IS NO MORE PRINTING OF IT AS IT'S JUST POSTED ON THE WEBSITE BUT REMAINS -- IT'S 275 PAGES LONG.

SO THERE'S A LOT IN THERE THAT THE CITY PRODUCES THAT IS NOT REQUIRED BUT IT IS GOOD INFORMATION.

THERE'S A COUPLE SECTIONS IN THERE.

THERE ARE GOOD INFORMATION FOR CITIZENS AND INDIVIDUALS ACROSS THE U.S. TO KNOW WHAT IS HAPPENING WHAT IS GOING ON IN THE CITY OF VICTORIA. THE CITY SUBMITTED THE REPORT TO THE GFOA IN ORDER TO GET THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING.

THE CITY RECEIVED THE CERTIFICATE FOR 41 CONSECUTIVE YEARS. OTHER REQUIRED COMMUNICATIONS AND PROCEDURES THAT WE WERE HAVING -- WE HAD TO PERFORM.

SINCE THE CITY EXPENDED GREATER THAN A $1 MILLION FEDERAL AWARDS, WE WERE REQUIRED TO PERFORM A SINGLE AUDIT.

SO THAT SINGLE AUDIT IS IN PROCEDURES PERFORMED TO TEST COMPLIANCE WITH THE OMB UNIFORM GUIDANCE REQUIREMENTS PICK THE OPINION LETTER WAS A CLEAN OPINION.

THERE WERE NO INSTANCES OF NON-COMPLIANCE OR NOR DEFICIENCIES INTERNAL CONTROL OVER COMPLIANCE NOTED.

FAILING TO CONCLUDE THE OTHER DISCUSSIONS AND TO COMMUNICATE WITH YOU AT THE CONCLUSION OF THE AUDIT, AS WE DO WITH THE ENGAGEMENT LETTER AT THE BEGINNING OF THE AUDIT CALCULATOR REQUIRED TO COMMUNICATE KEY AUDIT MATTERS, INCLUDING THIS KEY AUDIT MATTERS OR WE HAVE TO MAKE NOTE OF ANY SIGNIFICANT AUDIT DIFFICULTIES, WHICH WERE NONE.

ANY INDEPENDENT ISSUES IDENTIFIED WHICH THERE WERE NONE. IF WE HAD TO OBTAIN SECOND OPINIONS FROM OTHER ACCOUNTANTS WHICH WERE NONE AND ANY UNCORRECTED STATEMENTS OR MATERIAL AUDIT ADJUSTMENTS.

ALSO, THE CITY WAS REQUIRED TO ADOPT GASB STATEMENT 101, WHICH WAS FOR COMPENSATED ABSENCES FOR THE CURRENT YEAR.

EVERY YEAR THERE'S ALWAYS SOMETHING THE GOVERNMENT ACCOUNTING STANDARDS BOARD ISSUES LIKE IF YOU'RE FAMILIAR WITH FOR PROFIT AUDITS THEY HAVE TO ABIDE.

THE GASB 101 WAS REQUIRED TO BE ADOPTED BY THE CITY AND IT REQUIRED A STATEMENT OF THE CITY'S FINANCIAL STATEMENTS FOR

[00:35:03]

THE PURPOSE OF THIS IS JUST TO BETTER ALIGN ALL GOVERNMENT ENTITIES TO MAKE SURE THAT THEY'RE ALL REPORTING THE LEAVE LIABILITY THE SAME ACROSS ALL ENTITIES.

ONE OF THE MOST IMPORTANT QUESTIONS YOU MAY ALL RECEIVE IS HOW DID THE CITY'S FINANCIAL -- HOW DID THEY PERFORM AS A RESULT OF THE ACTIVITIES IN 2025. GREAT PLACE TO LOOK FOR THAT ANSWER IS IN THE DISCUSSION ANALYSIS.

THE MDNA, WHICH IS REFERRED TO IS FOUND ON PAGES FOUR THROUGH 22 OF THE BIG REPORT PIG DIMINISHMENT DISCUSSION ANALYSIS PROVIDES AN OVERVIEW OF THE CITY'S FINANCIAL ACTIVITIES.

PRESENTS FINANCIAL HIGHLIGHTS AND OTHER ECONOMIC DATA TO ASSESS THE FINANCIAL CONDITION OF THE CITY AND IT HELPS READERS UNDERSTAND GOVERNMENT ACCOUNTING AND HOW IT'S APPLIED TO EACH FUND. INSTEAD OF READING THE 275 PAGES, YOU CAN REALLY JUST LOOK AT THE MANAGEMENT'S DISCUSSION AND ANALYSIS. A LOT OF GOOD FINANCIAL INFORMATION COMPARED TO -- COMPARATIVE INFORMATION FROM THE WHOLE REPORT. IT DOES LOOK INTO THE FUTURE INTO 2026 AND BEYOND. SO THE READERS KNOW WHAT IS UP AND COMING FOR THE CITY'S FINANCIAL ACTIVITIES.

SO THE NEXT FEW SLIDES, I'LL HIT THE HIGHLIGHTS ON THREE MAJOR FUNDS OF THE CITY. THIS PARTICULAR SLIDE HAS A GRAPH OF THE FUND BALANCES AND THE POSITIONS FOR THE GENERAL FUND, WATER FUND AND THE ENVIRONMENTAL SERVICES FUND.

AGAIN, THIS DEPICTS THE FUND BALANCE IN THAT POSITION, WHICH IS DIFFERENT FROM THE WORKING CAPITAL, WHICH IS SHOWN IN THE CITY'S BUDGET DOCUMENT. THE DIFFERENCE BETWEEN WORKING CAPITAL AND FUND BALANCE IN THAT POSITION IS JUST HOW CAPITAL OUTLAY AND LONG TERM DEBT IS ACCOUNTED FOR.

SO GENERAL FUND, FUND BALANCE INCREASED FOR FISCAL YEAR 2025 ABOUT $3.8 MILLION. MAINLY DUE TO THE REVENUES COMING IN OVER BUDGET. THE WATER FUNDS THE POSITION DECREASED TO 168,000, DUE TO AN INCREASE IN EXPENSES PERMANENTLY IN PERSONNEL AND ENVIRONMENTAL SERVICES FUND NET POSITION DECREASED 138,000. MAINLY DUE TO AN INCREASE IN OPERATING EXPENSES. SO THIS SLIDE JUST REPORTS ON THE GENERAL FUND'S FUNDS BALANCE, THE TOTAL GENERAL FUND FUND BALANCE AT 930-2025 WAS 28.5 MILLION PERKINS THAT WAS COMPARED TO A $24.8 MILLION TOTAL FUND BALANCE AT 93024.

IN THE TOTAL FUND BALANCE, INCLUDES ABOUT 700,000, FOR CARRIED OVER PURCHASE ORDERS INTO 2026.

SO THOSE FUNDS WERE COMMITTED FOR THOSE POS.

SO THAT LEFT AN UNCOMMITTED AMOUNT OF 27.8 MILLION.

HISTORICALLY, THOSE EXCESS FUNDS ARE USED TO PAY FOR ONE TIME

EXPENDITURES FOR THE CITY. >> I WILL ALSO POINT OUT AS A REMINDER -- SORRY -- YOU HAVE A POLICY THAT REQUIRES US TO MAINTAIN 25%. SO JUST KEEP THAT IN MIND AS WE GO THROUGH THESE CHARACTERS ALSO VERY INTENTIONAL PROCESS OR DECISIONS THAT ARE MADE TO MAINTAIN THESE AT A HEALTHY LEVEL. I DON'T THINK WE CAN USE ALL

THAT MONEY. >> YES.

NET POSITION OF THE WATER FUND AT 93025 WAS 98 MILLION.

AS I SHOWED ON THE PREVIOUS SLIDE, THE WORKING CAPITAL FOR THE WATER FUND WAS 13 MILLION. SO THAT'S A BIG DIFFERENCE AGAIN -- DIFFERENT CAPITAL OUTLAY AND LONG TERM DEBT IS ACCOUNTED FOR.

NET POSITION OF THE SERVICES FUND FOR 1925 WAS 7 MILLION COMPARED TO WORKING CAPITAL OF 11 MILLION.

>> I WANT TO INTERJECT SOMETHING REAL QUICK THE DECREASE IN THE WORKING CAPITAL FOR THE WATER FUND OR THE UTILITY FUND WAS PLANNED BACK IT WASN'T SOMETHING THAT CAUGHT ANYBODY BY SURPRISE.

WE INTENTIONALLY HAD BEEN USING UP SOME OF THE WORKING CAPITAL THAT HAS BEEN JUST SAVED UP OVER TIME IN ORDER TO FUND OUR CIP.

[00:40:07]

THERE REALLY HASN'T BEEN A NEED TO BECAUSE WE HAD THIS WORKING CAPITAL THAT WAS ACCUMULATING. HOWEVER, AS WE LOOK TO EMBARK ON IMPLEMENTING RECOMMENDATIONS FROM SEVERAL MASTER PLANS, WHETHER THAT BE THE INI STUDY, STILL MEANING TO ADDRESS SOME INFILTRATION ISSUES LIKE WHETHER THAT BE THE WATER STUDY, THAT'S LOOKING AT HOW WE CAN BE MORE RESILIENT TO EXPAND AND DIVERSIFY OUR WATER SOURCE, AND OF COURSE WE HAVE AGEING INFRASTRUCTURE SO THOSE THREE THINGS CONTINUE TO STAY AT THE FOREFRONT. WE FORGOT SOME OF THE OTHER MODERNISATION EFFORTS. AS THOSE THINGS BECOME TO THE FOREFRONT OVER THE NEXT FEW YEARS WE'RE GOING TO HAVE A CONVERSATION WITH YOU ABOUT UTILITY RATES BECAUSE WE CAN'T DEPEND ON THIS WORKING CAPITAL FOREVER BECAUSE IT WILL JUST RUN OUT OR GET CLOSE TO 25% RESERVE AND THEN US NOT HAVE ANY FUNDS.

SO THIS WAS A VERY INTENTIONALLY DESIGNED AND PLANNED TO FUND OUR CIP AND MOVING FORWARD NECESSITATING A CONVERSATION.

SO, THANK YOU. >> MOVING ON, THIS IS -- THIS SLIDE SHOWS A GRAPH DEPICTING THREE YEAR COMPARISONS OF THE MAJOR REVENUE SOURCES FOR THE CITY, BEING PROPERTY TAX TAX SALES TAX, FRANCHISE, WATER SEWER REVENUES AND SOLID WASTE REVENUES. ON THE PROPERTY TAX, THIS IS JUST THE GENERAL FUND OR THE MAINTENANCE AND OPERATION TAX, JUST TO POINT THAT OUT THE FY25 PROPERTY TAX REVENUE WERE AT 20.3 MILLION COMPARED TO PRIOR YEARS AT 19 AND 18.6 MILLION.

>> SALES TAX REVENUES FOR FISCAL YEAR 25 OR 21 MILLION COMPARED TO PRIOR YEARS, SLIGHTLY LESS THAN 20 MILLION AT 19 MILLION AND THEN 20.4 MILLION IN 2023.

FRANCHISE TAX REVENUES FOR FISCAL YEAR 25 OR 6.1 MILLION COMPARED TO PRIOR YEARS AT 5.8. WATER FUND OPERATING REVENUE FISCAL YEAR 25, 26.4 MILLION COMPARED TO SIMILAR AMOUNTS FOR FISCAL YEAR 24. ENVIRONMENTAL SERVICES FUND OPERATING REVENUES WERE 6.2 AND ALSO COMPARED TO A SIMILAR

AMOUNT FOR FISCAL YEAR 24. >> JUST A REMINDER ON THE WATER AND SEWER REVENUES, WE DID HAVE A CREDIT THAT WAS GIVEN OUT IN JULY DUE TO THE NOTICE WHICH CONTRIBUTED TO THAT DECREASE.

>> OKAY. >> FINAL SLIDE, A GRAPH DEPICTING THE THREE COMPARISONS OF OPERATING EXPENDITURES AND EXPENSES FOR THOSE THREE MAJOR FUNDS.

GENERAL FUND FY25 EXPENDITURES WERE 59.3 MILLION COMPARED TO PRIOR YEAR, 2323.4 MILLION. WATER FUNDS, FY25 EXPENSES OR 25.7 COMPARED TO FY24 AT 24.5. ENVIRONMENTAL SERVICES FUND FY25 EXPENSES WERE AT 6.4 COMPARED TO A SIMILAR AMOUNT FOR FY24.

THAT IS MY SHORT OVERVIEW OF THE CITY'S FINANCIAL AUDITS.

THANK YOU FOR HAVING ME HERE THIS EVENING AND I WANT TO THANK WESLEY AND ALL HIS STAFF AND THE REST OF THE CITY STAFF FOR THEIR COOPERATION AND ASSISTANCE DURING THE AUDIT.

IT'S A LONG LENGTHY PROCESS AND THERE'S A LOT OF WORK AS I MENTIONED EARLIER IN ORDER TO COMPLETE THIS AUDIT.

IT TAKES AN ARMY TO DO IT. SO I APPRECIATE YOUR TIME THIS EVENING AND I'M OPEN TO ANY QUESTIONS YOU MIGHT HAVE NOW OR

ANY TIME IN THE FUTURE. >> ANY QUESTIONS? THANK YOU ALL APPRECIATE THE SERVICES YOU GUYS PROVIDE FOR THE CITY. I KNOW IT IS A DAUNTING TASK TO DO THIS EVERY YEAR AND WE APPRECIATE IT AND I APPRECIATE

YOUR TIME THIS EVENING. >> THANK YOU.

>> AGAIN, THE AUDIT IS POSTED ON THE CITY'S WEBSITE IF ANYBODY WANTS TO TAKE A DEEPER DIVE INTO THAT BEER KITS AVAILABLE.

[2. Overview of City/County Agreements. Jesús A. Garza, City Manager]

THERE WERE SOME QUESTIONS THAT CAME OUT OF THE WHOLE PROCESS AND LOOKING AT THAT WHEN WE APPROVED THE REPAIR, I REQUESTED

[00:45:01]

THE PURPOSE OF THIS OVERVIEW IS REALLY JUST TO GIVE US SOME FACTUAL BACKGROUND AND FACTUAL INFORMATION, IF WE HAVE QUESTIONS ABOUT IT THAT WE CAN ASK AT THE TIME.

SO IT'S POSTED AS AN ACTION ITEM AND WE'RE NOT MAKING THE DECISIONS ON ANYTHING RELATED TO ANY OF THESE CONTRACTS IT'S MORE JUST SEEKING INFORMATION ABOUT WHAT THAT CONTRACTION RELATIONSHIP LOOKS LIKE. I KNOW MR. GARZA HAD PUT IN SOME TIME ON THIS. MISS LACEY AND MR. REIN BACK THERE, WITH THAT MR. GARZA, I'LL TURN IT OVER TO YOU AND LET YOU WALK US THROUGH WHAT I KNOW IS A LOT.

>> THANK YOU. I ALSO WANT TO ECHO GRAD TO ALLISON, BUT SPECIFICALLY TO GILBERT.

I KID YOU NOT, LITERALLY THE DAY AFTER IT FELT LIKE YOU MADE THAT REQUEST, A FEW MONTHS AGO, WE OVER THE WEEKEND GONE AND PULLED ALL SORTS OF BOOKS FROM THE ARCHIVES AND HAD -- I. DON'T KNOW, A WHOLE BOOK RIGHT IN HIS OFFICE GOING THROUGH ALL OF THE DIFFERENT DETAILS SO GILBERT, THANK YOU FOR THE RESEARCH AND THE INTENTIONALITY THERE. I THINK IT WAS A VERY EDUCATIONAL PROCESS, EVEN FOR MYSELF QUITE FRANKLY I LEARNED QUITE A BIT JUST THROUGH THIS RESEARCH OF THINGS THAT I DIDN'T REALISE. GRANTED I'VE ONLY BEEN THIS MONTH SEVEN YEARS, BY THE WAY. SO I THINK IT REALLY HELPS US UNDERSTAND WHERE WE'VE BEEN IN ORDER TO HAVE A CONVERSATION ABOUT WHERE WE WANT TO GO. I THINK WHAT I'LL SHARE WITH YOU TODAY EXPLAINS A LOT ABOUT WHY WE ARE WHERE WE ARE RIGHT NOW WITH AN AGREEMENT. AS THE MAYOR ALLUDED, THERE ARE SEVERAL AGREEMENTS WERE EITHER THE COUNTY RENDERS A SERVICE OR WE RENDER A SERVICE PACK SO BRIEFLY, SOME OF THESE ARE LONG TERM ARRANGEMENTS SOME OF THEM ARE VERY SHORT TERM PERIODS SO FOR EXAMPLE WE RECENTLY ENTERED INTO A SHORT TERM AGREEMENT TO BE PART OF THE RAPID EXPANSION SERVICES OF THE NEW COUNTY FACILITY THAT IS GOING ON BY THE AIRPORT THIS IS KIND OF A ONE OFF BUT THEY BASICALLY ARE HIRING US IN ORDER TO PROVIDE THAT SERVICE. WE OF COURSE HAVE A SHARING AGREEMENT WITH EMERGENCY MANAGEMENT WHERE WE SPLIT THE COST OF THE MANAGEMENT OFFICE OF 50% THAT'S RECONCILED AT THE COMPLETION OF EVERY FISCAL YEAR WITH ACTUAL FIGURES COULD WE HAVE A PUBLIC SAFETY RADIO SYSTEM AGREEMENT WHERE WE PROVIDE THE COUNTY PAYS US TO HAVE ACCESS TO OUR RADIO TOWERS AND COMMUNICATION SYSTEM. WE ALSO HAVE A CONTRACT WITH THE COUNTY SPECIFICALLY THE AIR BOARD WHERE THEY PAY US AS A WHOLESALE CUSTOMER FOR WATER. SO ALL THE BUSINESSES LOCATED WITHIN THE FOOTPRINT OF VICTORIA AIRPORT DON'T ACTUALLY HAVE AN ACCOUNT WITH US. THE AIRPORT MANAGEMENT HANDLES HOW THEY ASSESS AND CHARGE FOR WATER ON SITE WE ALSO HAVE AN AGREEMENT WHERE APRIL STEAM SERVES AS A LOCAL REGISTER AND FURTHER AGREEMENT THERE IS -- THEY PAY US -- KNOW WE PAY THEM -- NOT REPAY PETER NYGARD I. THOUGHT SOMEBODY PAID.

THAT ONE? OKAY, SORRY, IT'S CONFUSING.

IN ANY CASE -- NOBODY PLAYS ANYBODY -- PAYS ANYBODY FOR THAT ONE. NOTED.

AND THEN WE HAVE THE FIRE AND EMS CONTRACT WHICH I'LL -- I'LL GO IN A BIT MORE DETAIL SERVICE LIBRARY CONTRACT AND ON THE RIGHT-HAND SIDE WE HAVE THE SERVICES OF THE COUNTY PROVIDES THAT WE PAY THEM TO PROVIDE US FOR EXAMPLE WE HIRE THEM TO RUN OUR ELECTIONS. WE OF COURSE PAY FOR THE 50% FOR EMERGENCY MANAGEMENT WE PAY THEM TO COLLECT OUR TAXES.

WE PAY HOUSING INMATES THAT RPD SENDS OVER AND OF COURSE WE HAVE THE ANIMAL CONTROL SERVICES THAT WE DON'T DIRECTLY PAY FOR AND THE PUBLIC HEALTH SERVICES THEY PROVIDE THAT WE DIRECTLY DON'T PAY FOR AS WELL. I FORGOT TO MENTION WE PROVIDE LIBRARY SERVICES TO ALL COUNTY RESIDENTS WITHOUT A DIRECT PAYMENT TO US FOR THAT. I'M GOING TO HIT ON THAT DIFFERENCE OF ACTUALLY PAYING VERSUS NOT THROUGHOUT THE COURSE OF THE PRESENTATION BECAUSE THE LACK OF A DIRECT PAYMENT I THINK CONTRIBUTES TO A BIT OF THE CONFUSION AND THE AMBIGUITY ABOUT WHAT THAT RELATIONSHIP OUGHT TO BE THAT'S EXACTLY WHAT ONE OF THE PROBLEM STATEMENTS IS ON THIS SLIDE, THERE IS NO CLEAR METHODOLOGY IN DETERMINING WHAT THE APPROPRIATE FUNDING MECHANISM SPECIFICALLY FOR FIRE, EMS, LIBRARY, COUNTY HEALTH

[00:50:03]

WE OF COURSE HAVE A CONTRACT WHERE THEY PAY US FOR FIRE AND EMS BUT IT'S NOT CONSISTENT. THERE'S ALSO NO CONSISTENT APPROACH TO THE ADVISORY ROLE SETUP.

THE COUNTY HAS THE ABILITY TO APPOINT ADVISORY BOARD MEMBERS TO LIBRARY -- LIBRARY OPERATION WHICH WE RUN BUT WE DON'T HAVE THE ABILITY TO APPOINT ADVISORY BOARD MEMBERS TO THE ANIMAL CONTROL OPERATIONS THAT THEY RUN.

SO THERE ISN'T THIS CONSISTENT RECIPROCAL APPROACH TO HAVING OFFICIAL VOICE AT THE TABLE HERE THEN THERE ARE SOME UNCERTAINTIES THAT UNFORTUNATELY GREW UP OVER THE LAST FEW MONTHS LIKE ONE STEMMING FROM NOVEMBER 25 DECISION THAT THE COMMITTEE COMMISSIONERS MADE TO CREATE AN EMERGENCY SERVICES TASK FORCE TO EVALUATE AND DEVELOP RECOMMENDATIONS FOR PROVIDING EMERGENCY SERVICES TO THE UNINCORPORATED AREAS OF THE COUNTY. THIS IS A VERY INTENTIONAL DECISION ON THEIR PART TO SET UP THIS TASK FORCE AND EXPLORE WHETHER HIRING FIRE ANIMUS WAS ... WORTH THE WHILE AROUND THE SAME TIME WE WERE STRUGGLING WITH HOW WE GO ABOUT ADDRESSING A LIBRARY ROOF SITUATION. FOR A FEW YEARS NOW WE'VE ALSO BEEN TACKLING THE QUESTION, HOW ARE WE GOING TO IMPLEMENT RECOMMENDATIONS FROM THE LIBRARY MASTER PLAN THAT WAS APPROVED A FEW YEARS AGO THE CURRENT LIBRARY IS STARTING 3000 SQUARE FEET THE LIBRARY MASTER PLAN RECOMMENDED DOUBLING THAT TO 66,000 SQUARE FEET WITH SOME RECOMMENDATIONS FOR SOME PRETTY SIGNIFICANT PHYSICAL ENHANCEMENTS TO THE EXISTING FACILITY. WE DON'T OWN THIS FACILITY AND I THINK RIGHTFULLY SO, WE DON'T WANT TO INVEST IN A FACILITY THAT WE DON'T OUTRIGHT OWN. THAT WAS SORT OF NICE TO HAVE IMPROVEMENT. HOWEVER WE CAME ACROSS A SITUATION WHERE THERE WAS A NEEDED IMPROVEMENT WHICH WAS THE ROOF AND THAT'S AN AREA THE COUNTY DECIDED TO NOT PARTICIPATE IN THE CULTURE OF THAT ROOF REPLACEMENT WHICH OF COURSE ALSO HAS CAUSED QUESTIONS AND CONCERN ABOUT WHAT THIS RELATIONSHIP REALLY LOOKS LIKE.

TO THE MAYOR'S POINT THAT'S WHAT PROMPTED THE REQUEST FOR TODAY'S PRESENTATION. ANY QUESTIONS AT THIS POINT? OKAY. SO THE RELATIONSHIP WITH THE COUNTY AND THESE DIFFERENT DEPARTMENTS ACTUALLY GOES BACK TO 1969 AND THIS IS JUST A HIGH-LEVEL OVERVIEW OF WHAT THAT RELATIONSHIP LOOKED LIKE BETWEEN 1969 AND 1991.

I'M NOT GOING TO GO INTO DETAILS BETWEEN THESE YEARS.

I WILL FROM 1991 TO PRESENT. THIS GIVES YOU A SENSE JUST WITHIN THE TIME. OF JUST HOW DIFFERENT THE ARRANGEMENTS WERE. THERE'S A FIXED AMOUNT FOR FIRE SERVICE FOR THE COUNTY. THERE IS A SPLIT OF BUDGETS FOR HEALTH SERVICES FOR LIBRARY SERVICES.

THERE WAS DEFINITELY DIFFERENT METHODOLOGY AT THAT TIME.

WHAT'S INTERESTING AND SOMETHING THAT I PERSONALLY LEARNED THAT I DIDN'T REALISE WAS THAT THE CITY OF VICTORIA ACTUALLY RAN AN ANIMAL SERVICE OR ANIMAL CONTROL DEPARTMENT PREVIOUS TO 1994.

SO DURING THIS TIME. FROM 1969 TO 1991 THE CITY RAN THE ANIMAL CONTROL DEPARTMENT AND THE COUNTY ACTUALLY PAID US A FIXED AMOUNT TO PROVIDE ANIMAL CONTROL SERVICES.

FROM 1992 TO 1998, THERE WAS A VERY SPECIFIC STRUCTURE OF THIS ARRANGEMENT AS YOU CAN ALREADY TELL BY THE WAY THIS SLIDE IS REPRESENTED IT'S EVOLVED FROM 1992 TO PRESENT.

I'M GOING TO WALK YOU THROUGH EACH OF THOSE WHILE ALSO SHOWING YOU A HIGH LEVEL SUMMARY OF THE FINANCIAL ELEMENT OF IT JUST SO YOU CAN GET A PICTURE OF WHAT THAT FINANCIAL TRANSACTION OR LACK THEREOF HAD BEEN BACK AND FORTH.

SO IN 1992 WE HAD SET UP A CONTRACTS FOR FIRING EMS AS YOU MAY RECALL WE HAD SEPARATE DEPARTMENTS FOR FIRE AND EMS THOSE WILL NOT CONSOLIDATED UNTIL 1994.

SO THOSE WERE SEPARATE CONTRACTS.

THERE WAS A SEPARATE CONTRACT FOR LIBRARY SERVICES WHERE THE CITY AND THE COUNTY SPLIT THE EXPENSE OF THE LIBRARY 50/50.

AS I MENTIONED ANIMAL CONTROL PRIOR TO 1994 WAS OPERATED BY THE CITY AND THEN AFTER 94 IT WAS TRANSFERRED TO THE COUNTY.

WHAT I ALSO LEARNED THROUGH THIS PROCESS WAS THAT WHEN THE TRANSFER HAPPENED, THE STATE OF VICTORIA ACTUALLY TRANSFERRED ALL ASSETS TO THE COUNTY. SO THE CITY TRANSFERRED THE FACILITIES, ALL EQUIPMENT, EVERYTHING ASSOCIATED WITH THE ANIMAL CONTROL OPERATIONS OF THE CITY HAD BEEN RUNNING FOR DECADES OR JUST TRANSFERRED TO THE COUNTY.

THEN ULTIMATELY THE CITY WAS PAYING 80% OF THAT ANIMAL CONTROL BUDGET IN THE COUNTY WAS PAYING 20%.

[00:55:04]

50/50, THAT'S EASY, JUST DECIDE TO SPLIT THE COST PER PERCENTAGE 4032 AS AN EXAMPLE THERE'S JUST NOT A LOT OF INFORMATION THAT VALIDATES WHY THAT WOULD BE THE CASE.

TO GIVE YOU A SENSE OF HOW THIS RELATIONSHIP DURING THE TIME.

WORK, AGAIN I'M GOING TO SHOW YOU JUST A FINANCIAL FIGURE.

SO PRIOR TO 1994 WE HAD SEPARATE CONTRACTS.

THESE ARE THE FIGURES THE COUNTY WOULD PAY US AS THE CITY.

THEN IT WAS CONSOLIDATED GOING INTO 1995 THROUGH 1997.

THAT'S SOMEWHAT PRETTY STRAIGHTFORWARD.

THEY WERE FIXED AMOUNTS. THE LIBRARY SERVICES 50/50, PRETTY STRAIGHTFORWARD GIVES YOU A SENSE OF HOW MUCH MONEY THE COUNTY WAS PAYING THE CITY DURING THOSE YEARS.

FOR ANIMAL CONTROL AS I MENTIONED UP UNTIL 1994, THE CITY WAS RUNNING THE COUNTY WAS PLAYING OFF $25,000 AND THEN WHEN IT SWITCHED AND WE TRANSFERRED ALL ASSETS TO THE COUNTY THE CITY STARTED TO PAY FOR 80% OF THAT BUDGET WHICH EQUATED TO THE 130 TO EVENTUALLY CLOSE TO $200,000.

THEN THERE IS THAT 5842 SPLIT, THE NUMBERS IN RED ARE FUNDS THAT WE PAID TO THE COUNTY AND THE NUMBERS IN BLACK THROUGHOUT THE PRESENTATION ARE FIGURES THAT THE COUNTY PAID US FOR THAT PARTICULAR SERVICE OR SPLIT WITH US FOR THAT PARTICULAR SERVICE.

ONE OF THE THINGS TO NOTE ABOUT THIS ARRANGEMENT IS THAT YOU CAN SEE HOW THERE WAS A LOT OF AGREEMENTS BECAUSE EACH OF THESE IS BASICALLY ITS OWN AGREEMENT ITS OWN AGREEMENT THAT NECESSITATED ITS OWN RECONCILIATION.

SO I CAN SEE HOW AT THE TIME BOTH STAFF FROM THE CITY AND COUNTY PROBABLY FELT A LITTLE OVERWHELMED WITH THE IMPLEMENTATION OF ALL OF THESE DIFFERENT AGREEMENTS.

I'LL STOP THERE. ANY QUESTIONS ON THAT TIME FR FRAME? DOES THIS FLOW WORK? OKAY. COUNCILLOR, DID YOU HAVE A

QUESTION? >> SO WE ASSUME THAT BECAUSE OF THE COMPLEXITY OF MANAGING ALL OF THESE DIFFERENT CONTRACTS, THAT LED TO THE CONVERSATION AROUND CATALYST TAKE A DIFFERENT APPROACH, FROM 1999 TO 2007 GILBERT'S EXERCISE OF PULLING ALL OF THESE BOOKS INCLUDED SOME PICTURES OF SOME OF THE BOOKS HE FOUND BECAUSE WHEN ONE HAS EFFORT TO GO TO WASTE.

SO THANK YOU GILBERT. THIS WAS REALLY HELPFUL BECAUSE IT DID ALSO HELP US FIND A TIME FRAME WHERE THERE WAS THIS COLLABORATION BETWEEN THE CITY AND THE COUNTY.

THERE WAS LITERALLY A CITY COUNCIL COUNTY COMMISSIONERS MEETING. THERE WAS COMMITTEES CREATED TO LOOK AT HOW CAN WE TAKE THESE SIX, SEVEN DIFFERENT CONTRACTS AND JUST MAKE IT MORE EFFICIENT? SO THAT ULTIMATELY LED TO WHAT WE REFERRED TO AS AN EQUALISATION PAYMENT AGREEMENT WHICH ATTEMPTED TO TAKE ALL OF THOSE DIFFERENT SERVICES AND BASICALLY FUNNEL THEM INTO ONE AGREEMENT.

SO ALL OF THE SERVICES THAT WERE FUNNELLED INTO THE AGREEMENT ARE INCLUDED IN ON THE LEFT-HAND SIDE OF THE SLIDE.

AND INCLUDE MANY OF THE ONES THAT WE'RE TALKING ABOUT TODAY.

ALSO IT'S VERY INTENTIONAL WITH INCLUDING LIKE 911 DISPATCH, COUNTY FIRE MARSHAL SERVICES THE COUNTY DIDN'T ALWAYS HAVE FIRE MARSHAL SERVICES. SO OBVIOUSLY, THE INCLUSION OF THAT HAS ALSO EBBED AND FLOWED THROUGHOUT THE YEARS.

IN THEORY IT WAS SIMPLE, LET'S PUT ALL OF THESE ELEMENTS INTO ONE CONTRACT AND LET'S RECONCILE ALL OF IT TOGETHER.

ON THE RIGHT-HAND SIDE IS REAL LIFE EXAMPLE OF WHAT ONE RECONCILIATION LOOKED LIKE FOR THE YEAR 2000.

I'M GOING TO WALK YOU THROUGH IT.

AT THE VERY TOP WE START WITH THE COST OF THE CITY TO RUN THE FIRE DEPARTMENT WHICH IS ROUGHLY $7 MILLION, THEN THE COST OF THE CITY TO RUN THE LIBRARY, WHICH AT THE TIME WAS 1.5.

THE COST FOR DISPATCH ASSOCIATED WITH COUNTY CALL VOLUME, 161.

SO THE CITY WAS SPENDING $8.5 MILLION TOWARDS THAT.

[01:00:03]

THAT'S WHAT THE CITY WAS SPENDING TO PROVIDE THOSE SERVICES. AS WE CONTINUED THE COUNTY OF COURSE HAD THEIR END OF THE BARGAIN AND SO THEY HAD $2.1 MILLION GOING TOWARDS THE OPERATION OF THE COUNTY HEALTH DEPARTMENT WHICH AT THE TIME INCLUDING ANIMAL CONTROL, RECALLED ANIMAL CONTROL FOR THE LONGEST TIME WAS THE DIVISION OF THE HEALTH DEPARTMENT AND ONLY RECENTLY BECAME ITS OWN DEPARTMENT. SO THAT ULTIMATELY, ONCE YOU DEDUCT REVENUES, ALSO LEADS TO A NET COUNTY OPERATIONAL EXPENSE OF 1.4 MILLION. THEN THERE WAS THIS COMBINED NET EXPENSE OF 9.1 MILLION WHICH BASICALLY JUST ADDED THOSE TWO NUMBERS. THIS CONTRACT SAID THE POPULATION OUTSIDE THE CITY LIMIT IS ROUGHLY 28% THE COUNTY OUGHT TO PAY 28% OF THAT 9.1. YES.

>> I'M JUST JOKING -- >> YOU NEED SOME WATER SO?

>> HE NEEDS EMS. [LAUGHING]

>> ALL RIGHT. UNDER THAT FORMULA, THE COUNTY WILL BE RESPONSIBLE FOR $2.5 MILLION WHICH IS AGAIN ROUGHLY 28% OF THE 9.1. HOWEVER THE COUNTY THEN WOULD RECEIVE A CREDIT FOR THE 1.4 THAT THEY HAD ALREADY SPENT ON THEIR OPERATIONS. THEN THERE'S A CREDIT FOR PAYING THE 50% OF THE LIBRARY, AND THEN ULTIMATELY IN THAT PARTICULAR YEAR AFTER THE RECONCILIATION, THE COUNTY OWED US $457,000.

WHICH, AGAIN IN THEORY, WAS SUPPOSED TO BE THE ROUGHLY 28% OF THE TOTAL EXPENSE OF ALL OF THAT.

AS YOU CAN SEE IT ACTUALLY IS NOT THAT BECAUSE THE LIBRARY STILL HAD ITS OWN ARRANGEMENT WITH THE 50/50 SPLIT, HENCE THAT'S WHY LISTED AT THE VERY BOTTOM.

SO THERE WERE STILL -- IT WAS DEFINITELY A STEP IN THE RIGHT DIRECTION TO CONSOLIDATE AGREEMENTS AND CONSOLIDATE RECONCILIATION. ABSOLUTELY, IT WAS STILL LEFT SOME THINGS UNCLEAR AND UNCERTAIN.

THIS IS ANOTHER WAY TO VIEW WHAT THE FINANCIAL CONTRIBUTION FROM THE COUNTY LOOKED LIKE DURING THAT TIME FRAME, WHICH ALSO HELPED ANSWER ANOTHER QUESTION THAT NOBODY REALLY KIND OF KNEW WHICH WAS HOW DID WE END UP WITH 14.5% FOR THE ARRANGEMENT WE HAVE NOW? SO OUR BEST GUESS IS THE 14.5% CAME FROM THIS REALISATION THAT ONCE YOU DID THE MATH THE COUNTY WAS BASICALLY PAYING FOR 16.8% OF THE COST AND THEN SO ON AND SO FORTH. ON AVERAGE IT'S BASICALLY 15.8%, WHICH IS NOT ANYWHERE NEAR THE 28% THAT I PREVIOUSLY MENTIONED IN THEORY THEY WOULD HAVE BEEN RESPONSIBLE FOR.

SO THE MATH WASN'T MATHING THAT IT WAS INTENDED.

WHO KNOWS. THE POINT IS AT THE END OF THE DAY, WHAT WAS COMING OUT OF POCKET FROM THE COUNTY ON AVERAGE WAS 15.9%. THE REASON WHY IT WASN'T NOTHING IS BECAUSE YOU WEREN'T LOOKING AT CERTAIN THINGS IN ISOLATION, GROUPING THEM ALL TOGETHER WHILE IN PRACTICE MIGHT HAVE BEEN EASIER TO IMPLEMENT REALLY KIND OF DOESN'T GIVE YOU THE NUANCES OR INCLUDES THE NUANCES OF THE DIFFERENCES WITHIN EACH OF THOSE OPERATIONS. A STEP IN THE RIGHT DIRECTION NONETHELESS. REMEMBER 15.9%, AFTER 2007, YOU KNOW, PARTIES GOT TOGETHER AND SAY, WE HAVE TO FIND A BETTER WAY. SO THE ARRANGEMENT BECAME THIS WHICH IS VERY SIMILAR TO WHAT IT LOOKS LIKE TODAY WHICH WAS THIS IDEA THAT FOUND IN THE MINUTES, THAT MAKES EMPLOYER THE ACCOUNTING COST TO PROVIDE MORE PREDICTABILITY AND ANTICIPATED COST. SO THIS IS WHEN IT BECAME THE COUNTY DOES THIS, THE CITY DOES WHY.

AND THE COUNTY 100% RESPONSIBILITY FOR HEALTH DEPARTMENT ANIMAL CONTROL AND FIRE MARSHAL, AIRPORT IS

[01:05:02]

IT DOES APPLY TO WHEN WE BUY NEW EQUIPMENT AND APPARATUSES, BUT NOT FOR THOSE LARGER EXPENSES. IN THIS PARTICULAR CASE, WE ALSO PULLED OUT NOT RECONCILING THAT AMBULANCE REVENUE, SO THAT WE COULD STILL COLLECT THAT REVENUE THAT IS GENERATED BY THE COUNTY.

SO THIS IS WHAT THAT ARRANGEMENT ENDED UP LOOKING LIKE ONCE YOU DO THE MATH AND PULL OUT THE FIGURES THE COUNTY PAYING 14.5%, THIS IS THAT PICTURE. ONE THING TO NOTE WHICH IS WHAT IS IN RED, IT IS OUR EXPENSES THAT DIDN'T HAVE ANY REIMBURSEMENT OF ANY KIND, WHICH IS OKAY.

I'M SIMPLY ILLUSTRATING TO SHOW YOU SOME OF THE EXPENSES THAT WE INCURRED DURING THOSE SAME YEARS PREFERS SANCTIONS OR EXPANSIONS OR THINGS OF THAT SORT. THE THING THAT I'LL NOTE IS THAT UNDER THIS AGREEMENT, IT'S 14.5%.

PREVIOUSLY, WAS 15.9. SO THIS IS WHERE THINGS START TO TREND TOWARDS A LOWER PERCENTAGE FOR THE COUNTY, WHICH AS STEPH AND I DISCUSSED IS A 100% ON US, THE CITY FOR AGREEING TO THESE ARRANGEMENTS. THE FACTS ARE THERE THE COUNTY WAS PAYING OUT OF POCKET ROUGHLY 16%, THE CITY AGREED TO AN AGREEMENT THAT DROPPED THAT TO BASICALLY 14 AND A HALF.

ONE OF THE THINGS WE TALKED ABOUT QUITE A BIT IS THE CORRELATION BETWEEN THE FIRE DEPARTMENT SPECIFICALLY AND THE BUDGETED AND WHAT THAT WOULD EQUATE TO.

SO I WANTED TO SHOW YOU HOW CAN I HAVE A FEW SLIDES HERE THROUGH THAT KIND OF ILLUSTRATE WHAT IS THAT DELTA EFFECT SO IN THIS PARTICULAR CASE, 23% OF CALL VOLUME WAS OUT ON THE COUNTY.

SO WHAT YOU SEE HERE IS WHAT THE COUNTY PAY, EQUIVALENT TO THE 14.5% AND THE LIGHTER SHADE BLUE IS WHAT THEY WOULD HAVE PAID, HAD THAT PAYMENT BEEN EQUIVALENT TO 23% CALL VOLUME.

AND THEN THE DIFFERENCE SO YOU CAN SEE HOW THAT DIFFERENCE IN 2008 WAS 1.7 AND THEN IT DROPS DOWN TO ROUGHLY HUNDRED AND 90,000, 43670 AND SO ON AND SO FORTH.

AND THAT CALL VOLUME PERCENTAGE IS AN AVERAGE OVER THIS TIME.

>> CORRECT. SIMPLY SHOWING AVERAGES TO ILLUSTRATE A POINT THE OTHER POINT I WOULD LIKE TO MAKE IS THAT I THINK IT'S VERY EASY FOR US AS THE CITY TO LOOK AT SOMETHING LIKE THIS AND THINK, THE COUNTY MIGHT NOT BE PAYING THEIR FAIR SHARE. AND I HEARD THAT TERM QUITE A BIT THROUGH DIFFERENT CONVERSATIONS WITH SOME OF YOU OR EVEN WITH THE JUDGE OR COUNTY COMMISSIONERS.

BECAUSE THIS ARRANGEMENT DOESN'T INCLUDE VERY SPECIFIC FIGURES FOR ALL OF THE SERVICES GOING BACK AND FORTH LIKE AGAIN IT MAKES IT VERY DIFFICULT TO TRULY GAUGE WHAT THAT FAIR SHARE IS, IN THIS INSTANCE EVEN THOUGH THEY DIDN'T PAY US THAT EXTRA 1.7 OR THAT EXTRA 690,000 THERE ISN'T A DIRECT EXPENDITURE OUT THAT WE'RE SENDING THEM FOR ANIMAL CONTROL AS AN EXAMPLE.

SO IT'S DIFFICULT TO COMPARE SERVICES WHEN ONLY ONE OF THEM BEING THIS ONE HAS SOME TRUE FINANCIAL DATA TO PULL UP.

ANY QUESTIONS ON THAT TIME FRAME? OKAY. SO THEN IN 2013, THE CITY AGREED TO GET AWAY FROM 14.5% AND GO DOWN TO A FLAT RATE.

UNDER FLAT RATES ARE LISTED HERE.

THEY HAPPEN THROUGH DIFFERENT AMENDMENTS.

I ASSUME THAT AS THESE DIFFERENT AMENDMENTS WERE COMING TO AN END, THEY WERE JUST NOT RENEWED. I MENTIONED TO THE MAYOR THIS MORNING THAT I REMEMBERED SHORTLY AROUND THE TIME I ARRIVED THERE BEING CONVERSATIONS ABOUT -- FROM THE COUNTY AND MYSELF ABOUT A DESIRE TO RECONSIDER A FLAT RATE.

OBVIOUSLY THAT DIDN'T HAPPEN AND WE ARE NOW UNDER A 14.5%,

[01:10:04]

AND ENDED UP ACTUALLY RESULTING IN ROUGHLY 12% OR AN AVERAGE OF 12.4. SO AT THE BOTTOM, I HIGHLIGHTED THIS HISTORICAL TRAJECTORY BECAUSE IT SHOWS HOW FROM 1999 TO 2007 THE COUNTY WAS CUTTING US A CHECK FOR THE EQUIVALENT OF ROUGHLY 16%, WE AGREED TO DROP IT TO 14 AND A HALF, THEN WE AGREED TO DROP IT TO 12.4. I DON'T KNOW WHY THOSE ARRANGEMENTS WERE MADE. I CAN ONLY SPEAK TO THE FACTS BUT I CAN ASSURE YOU THAT HAD I BEEN CITY MANAGER AT THE TIME, THIS -- I. WOULD HAVE PUSHED VERY HARD ON THIS BECAUSE IT DOESN'T MAKE ANY SENSE THAT THE PERCENTAGE GO LOWER WHEN OUR EXPENSES ARE ONLY GETTING HIGHER.

AND I'LL SHOW YOU A GRAPH A LITTLE LATER THAT CLEARLY ILLUSTRATES THAT TREND. DURING THAT SAME TIME FRAME, THIS SHOWED YOU WHAT THE PAYMENT WOULD HAVE BEEN HAD IT BEEN 14.5%. ON THE LEFT-HAND SIDE, HAD WE NEVER AGREED TO THAT FLAT RATE, THAT AGAIN RESULTED IN BASICALLY A 12% PAYMENT ON THEIR PART, THIS IS WHAT IT WOULD HAVE BEEN AGAIN IF IT WOULD HAVE BEEN 14.5% THE COUNTY WOULD HAVE PAID AN EXTRA $300,000 IN 2013 AND BASICALLY KIND OF GOES DOWN A BIT AFTER THAT AGAIN IT GIVES YOU A SENSE OF HOW MUCH MONEY WE DIDN'T RECEIVE FROM THE COUNTY DURING THOSE YEARS BECAUSE OF OUR AGREEING TO A FLAT RATE VERSUS STAYING WITH A PERCENTAGE RATE. ON THE RIGHT-HAND SIDE, ONCE AGAIN, SHOWING WHAT THE CALL VOLUME WOULD HAVE LOOKED LIKE DURING THE TIME FRAME THE PERCENTAGE OF THE CALL VOLUME ACTUALLY WENT DOWN FROM 23% TO 20%.

NONETHELESS, IT ILLUSTRATES THAT HAD THERE BEEN AN AGREEMENT THAT THE COST TO PROVIDE EQUIVALENT TO COST OF SERVICE LIKE THIS IS WHAT THE PAYMENTS WOULD HAVE BEEN.

ANY QUESTIONS ON THAT TIME FRAME? OKAY. AS I HAVE ALREADY ALLUDED TO, ENDED UP REVERTING BACK TO THE 14.5% WHICH IS THE MODEL THAT EXISTS TODAY. AND THIS GIVES YOU A SENSE OF THE FIGURES THAT ARE EQUIVALENT TO THE 14.5%.

AGAIN, THROUGHOUT, WE INCLUDED THE EXPENSES WE KNOW WE'VE HAD FFOR THE FIRE DEPARTMENT. WHAT'S MISSING FROM ALL OF THIS IS THAT IN THE ABSENCE OF THERE BEING SPECIFIC AGREEMENT FOR PAYMENT FOR SERVICE, FOR THE OTHERS I DON'T HAVE THAT DATA TO KNOW ALL WE KNOW FOR EXAMPLE IS THAT ON AVERAGE -- I. SHOULDN'T SAY THAT THE RANGE OF THE BUDGET BEFORE THE ANIMAL CONTROL DIVISION OR DEPARTMENT OVER THE PAST TEN YEARS HAS GONE FROM

ANYWHERE FROM HALF A MILLION TO >> MEDIA] FLUCTUATES JUST TO GIVE YOU A SENSE OF THAT. THIS AGAIN SHOWS WHAT THE PAYMENT WOULD HAVE BEEN HAD WE APPLIED THE 20% CALL VOLUME DURING THIS TIME. ANY QUESTIONS ON THAT? OKAY. SO, IN ADDITION TO WHAT I'VE ALREADY GONE OVER IN TERMS OF WHAT IS INCLUDED IN THE CURRENT CONTRACT HERE ARE A COUPLE OF OTHER BULLETS WE PULLED OUT FROM THE CONTRACT WHERE I REALLY WANT TO FOCUS ON IS THE THIRD ONE, THE CITY MAY CHARGE FEES AND COSTS OF PERSONS TO RECEIVE SERVICES OUTSIDE CITY LIMITS ON THE SAME BASIS TO A PERSON CHARGED INSIDE CITY LIMITS. FOR US THAT COULD BE ACTUALLY MORE THAN JUST AMBULANCE BILLING BUT FOR THE MOST PART IT'S BEEN SOLELY AMBULANCE BILLING BECAUSE WE DO RECEIVE THAT REVENUE WHEN WE PROVIDE THAT SERVICE OUT IN THE COUNTY WHICH ISN'T CALCULATED IF I WERE TO GO BACK. THAT TOPIC MAKES ME NERVOUS.

[01:15:07]

>> I THINK WE HAVE OUTSIDE RESIDENT RATES FOR AMBULANCE.

IT'S, RIGHT? I AM TRYING TO GET BACK TO -- I. WILL GET THERE. OKAY.

WE OF COURSE KNOW THERE'S MENTIONS TO LIBRARY AND THE CURRENT CONTRACT. WE OF COURSE HAVE DISCUSSED HOW FURTHER CONTRACT WERE RESPONSIBLE FOR THE OPERATION, CONTRACT IS VERY CLEAR THAT IT INCLUDES PERSONNEL, WHICH MAKES SENSE OF COURSE THE COUNTY RETAINS OWNERSHIP OF THEIR PROPERTY AND IMPROVEMENTS. THIS PART I FRANKLY DON'T UNDERSTAND BECAUSE AS I POINTED OUT IN 1994, WHEN THE COUNTY TOOK OVER OPERATION OF A DIFFERENT CONTROL THE CITY TRANSFERRED ALL OF THOSE ASSETS TO THE COUNTY BUT WHENEVER IT WAS DECIDED FOR THE CITY TO TAKE ON THE LIBRARY THAT WASN'T RECIPROCATED. AND WE DON'T HAVE AN ANSWER AS

TO WHY IT WASN'T. >> DO WE KNOW WHAT THE VALUE OF

THOSE ASSETS WERE? >> I THINK YOU SAID 700,000,

BACK THEN 700,000. >> GOT IT.

>> I'M NOT GOING TO REPEAT THAT ONE.

SO, WE ALSO KNOW IN THE CURRENT CONTRACT THERE'S VERBIAGE TO MEASURE CAPITAL EXPENSES EXCEEDING 100,000 WILL BE DISCUSSED WITH THE COUNTY CLERK WHICH OF COURSE IS WHAT WE ATTEMPTED TO DO WITH THE LIBRARY ROOF BUT IT'S NOT IN THE CONTRACT THAT REQUIRES THE COUNTY TO DO THAT BUT IT SUGGESTS THAT WE CAN TALK TO THEM ABOUT IT.

OF COURSE THERE'S A LIBRARY ADVISORY BOARD WHERE THE COUNTY APPOINTS MORE INDIVIDUALS AND THEN THE CITY DOES FOUR AND THEN THERE'S A JOINT APPOINTEE LIKE I MENTIONED EARLIER, THAT WASN'T RECIPROCATED APPROACH GOING THE OTHER WAY.

THERE ARE SOME BOARDS WITH HEALTH DEPARTMENT THAT YOU DO APPOINT BUT THERE AREN'T SPECIFIC TO ANIMAL CARE SERVICES OR ANIMAL CONTROL. THEN WHERE WE ARE IN TERMS OF THE TERM AND JUST EXPIRATION TIMELINE OF THE AGREEMENT IS THAT CURRENTLY, ANY PARTY WISHING TO TERMINATE BEFORE OCTOBER FIRST 2028 MUST NOTIFY THE OTHER BEFORE MAY FIRST 2027, OR OF COURSE PEOPLE COULD JUST MUTUALLY AGREE.

THIS IS THE ONE SLIDE THAT ILLUSTRATES OUR INCREASE EXPENDITURE SPECIFICALLY FOR FIRE AND EMS AND SHOWS YOU A LITTLE BIT OF THE TRENDS OF THE PERCENTAGE THAT THE COUNTY HAS PAID US SO AT THE VERY BOTTOM LEFT IT SHOWS A 10.6% THAT THE SEPARATE APPROACH WAS TAKING. SO I MENTIONED THAT WHEN THE RECONCILIATION OR EQUALISATION PROGRAM WENT TO THE EFFECT THAT WAS A STEP IN THE RIGHT DIRECTION.

IT ABSOLUTELY WAS BECAUSE THAT ULTIMATELY LED TO THE COUNTY PAYING US ALMOST 16%. SO IT LEADS TO THE COUNTY PAYING US MORE MONEY WHEN THE AGREEMENT WENT INTO EFFECT AS I MENTIONED BEFORE THEN IT WENT DOWN TO 12.4% IN EFFECT BACK WHEN WE AGREED TO FLAT RATE. AND NOW IT'S 14.5%.

DURING THIS TIME FRAME THE BUDGET FOR THE FIRE DEPARTMENT GRANTED THIS IS A WHILE AGO, IN 1992 AND IT WAS 4 MILLION AND NOW IT'S 21 MILLION FOR THE FIRE DEPARTMENT.

YOU CAN SEE HOW THAT 14.5% JUST IN THE LAST TEN YEARS HAS INCREASED BY OVER A MILLION DOLLARS.

ANY QUESTIONS ON THIS SLIDE? OKAY.

AND THEN IF I KEEP GOING, WE DECIDE TO OVERLAY HERE WHAT THE

[01:20:04]

THERE IS JUST NO CLEAR APPROACH TO HOW THINGS GET FUNDING -- GET FUNDED THERE'S NO CLEAR CONSISTENT APPROACH TO THIS PAYMENT FOR SERVICE AND I DO BELIEVE THAT THE ABSENCE OF THAT CREATES AMBIGUITY AND CONFUSION AND I THINK FEEDS SENTIMENTS BECAUSE THERE'S JUST NO WAY TO RECONCILE INFORMATION OR TO DETERMINE WHAT'S THE VALUE OF THIS VERSUS THAT.

I MENTIONED OF COURSE -- I'M NOT GOING TO REPEAT THIS BUT I WANTED TO BRING THIS BACK UP BECAUSE I WANTED TO TALK ABOUT OR SHARE WITH YOU A RECOMMENDED APPROACH MOVING FORWARD.

NOT TO SOLICIT ANY FEEDBACK TONIGHT BUT JUST TO GET EVERYBODY'S BRAINS THINKING ABOUT WHAT MIGHT BE A BETTER WAY. AS YOU CAN SEE IN THE HISTORY OF THIS RELATIONSHIP DATING BACK TO 1969, THERE'S PLENTY OF MOMENTS WHERE THE CITY OR COUNTY OR BOTH HAVE DECIDED THERE'S GOT TO BE A BETTER WAY THERE'S PROBABLY NEVER GOING TO BE A PERFECT WAY 10% BASED ON EVERYTHING I'VE SHARED AND EVERYTHING THAT HAS TRANSPIRED OVER THE LAST FEW MONTHS THERE PROBABLY OUGHT TO BE SOME CONSIDERATION TO RE-EVALUATE HOW THIS WAS DRAWN UP. I'M PROPOSING IS THAT WE BASICALLY TAKE CERTAIN ELEMENTS OF PREVIOUS AGREEMENTS AND COMBINE THEM WITH THE CURRENT ONE WE HAVE NOW TO BRING SOME CLARITY. SO I AM SUGGESTING WE EXPLORE MAINTAINING THE FOUNDATION OF THE EXISTING SERVICES WHICH ARE FIRE, EMS, ANIMAL CONTROL LIBRARY AND WE REVERT TO A FINANCIAL RECONCILIATION OF EACH TO SECURE CLARITY AND LESSEN AMBIGUITY ON SERVICES BEING PROVIDED BY EITHER PARTY SO THEY CAN BE VERY CLEAR WHAT OUR RESPONSIBILITY IS FOR HIRING THE COUNTY TO PROVIDE ANIMAL CARE SERVICES BE VERY CLEAR WHAT THE RESPONSIBILITIES FOR THE COUNTY TO RECEIVE FIRE AND EMS. VERY CLEAR FOR THE COUNTY TO PROVIDE PAYMENT FOR DELIVERY SERVICES WE PROVIDE TO COUNTY RESIDENTS JUST TO MAKE IT MORE CLEAR. IN ADDITION TO MAKING IT CLEAR CALCULATED TO BE CONSISTENT WITH THAT METHODOLOGY ACROSS THE BOARD. IF WE'RE GOING TO BASE IT OFF OF A CALL VOLUME DEPARTMENT OR UTILISATION OR WHATEVER WE COME UP WITH LIKE MAYBE IT MAKES SENSE TO APPROACH THE SAME WITH ANIMAL CONTROL AS AN EXAMPLE. THEN I THINK IT'S IMPORTANT TO HAVE THIS MUTUAL CONSISTENT APPROACH TO ADVISORY FUNCTIONS.

WE HEAR QUITE A BIT FROM RESIDENTS ABOUT CONCERNS RELATED TO ANIMALS AND WE DON'T REALLY HAVE ANY KIND OF FORMAL WAY TO BRING UP CONCERNS, THOUGHTS, IDEAS, ET CETERA.

SO I THINK IT MAKES SENSE THAT IF THE COUNTY IS GOING TO HIRE US TO PROVIDE LIBRARY SERVICES TO COUNTY RESIDENTS AND IN TURN GET TO THE TABLE IN ADVISORY CAPACITY I THINK IT MAKES SENSE THAT BE RECIPROCATED AND AS WE HEARD HIM MORE FIRMLY FOR CARE SERVICES, WE RECEIVED AT THE TABLE IN AN ADVISORY CAPACITY.

ANY QUESTION ON THE VERY HIGH LEVEL APPROACH TO IT? OKAY. IT DOES LEAVE ONE ELEMENT KIND OF UNADDRESSED WHICH I THINK NECESSITATES AN INDIVIDUAL DIRECTION OR DECISION OR APPROACH WHICH IS RELATED TO THE LIBRARY BUILDING ITSELF I MENTIONED IN 1994, WHEN THE CITY TRANSFERRED THOSE ASSETS TO THE COUNTY TO TAKE OVER ANIMAL -- EXCUSE ME ANIMAL CONTROL, WE TRANSFERRED THOSE ASSETS AND WASN'T RECIPROCATED WITH THE LIBRARY.

SO ONE APPROACH WOULD BE THAT IN LIGHT OF THIS INFORMATION WE'VE LEARNED IN LIGHT OF THEIR HISTORICAL DECISION THAT WAS MADE IN 1994 TO SIMPLY REQUEST THAT IN RETURN.

SIMILAR TO HOW WE TRANSFER THOSE ASSETS TO THE COUNTY IN OR OF COURSE WE PROPOSE BUYING THE LIBRARY.

AND I THINK IT'S WORTH REMINDING YOU THAT WE'VE ACTUALLY ATTEMPTED TO BUY THE LIBRARY ON TWO OCCASION, SO WE ATTEMPTED IN SEPTEMBER OF 2024, AT THE TIME WE HAD DONE AN APPRAISAL OF THE LIBRARY AND SO DID THE COUNTY SO CONVERSATIONS WERE GETTING SERIOUS. WE MADE A OFFER FOR 3 MILLION AND IT WAS NOT ACCEPTED. WE THEN ATTEMPTED TO BUY IT ONCE AGAIN JUST AS RECENT AS THIS PAST YEAR BECAUSE OF THE ROOF ISSUES AND BECAUSE OF US WANTING TO SAY, HEY, WE'RE GOING TO INVEST ALL THIS MONEY IN THE ROOF IT MAKES SENSE FOR US TO BUY IT AND ONCE AGAIN THERE WAS NO SEEMINGLY DESIRE TO SELL US THE LIBRARY BUILDING. SO THEN THAT LEAVES THE THIRD OPTION TO YELLOW KATE IT TO A DIFFERENT LOCATION.

AND OF COURSE WITHIN THAT, THERE ARE A FEW OPTIONS AND WE CAN PURCHASE LAND, FIND AN EXISTING PIECE OF PROPERTY AND RENOVATE

[01:25:04]

I THINK IT'S IMPORTANT TO NOTE WE SPENT 800 THOUSAND ON THE ROOF BECAUSE THE COUNTY DID NOT AGREE TO SPLIT THE COST OF THE ROOF WITH US, SO I THINK IT'S IMPORTANT TO PROVIDE THE INFORMATION THAT I THINK IS LEADING US TO HAVE TO EXPLORE RELOCATING THE LIBRARY TO A DIFFERENT LOCATION.

BUT ULTIMATELY ONLY YOU CAN PROVIDE THAT POLICY DECISION OR DIRECTION, BUT AGAIN, NOT ASKING FOR IT NOW.

JUST SOMETHING FOR YOU TO THINK ABOUT.

AND WITH THAT I'M HAPPY TO ANSWER ANY OTHER QUESTIONS OR GILBERT OR ALLISON, ANY QUESTIONS YOU MIGHT HAVE ON ANY

OF IT? >> ANY QUESTIONS FOR MR. GARZA?

>> I DON'T HAVE A QUESTION BUT SOMEWHAT OF A COMMENT.

IT'S KIND OF A FUNDAMENTAL ONE. THE SERVICES THATES TO COUNTY R BELIEVE SHOULD BE PROVIDED EQUALLY TO ALL COUNTY RESIDENTS.

THE FACT THAT THE CITY HAS PROVIDED FUNDING FOR SOME OF THOSE, SO IT'S ALMOST LIKE CITY RESIDENTS GET DOUBLE TAXED TO PROVIDE THOSE SERVICES AND I HAVE A FUNDAMENTAL ISSUE IN SOME OF THESE CONTRACTS BECAUSE OF THAT.

>> WELL, AND I THINK THAT'S WHY THE LACK OF CLARITY, RIGHT? I THINK LEADS TO THE AMBIGUITY ABOUT THAT SPECIFIC TOPIC, RIGHT? THAT SPECIFIC TOPIC HAS COME UP YOU KNOW IN SEVERAL DIFFERENT CONVERSATIONS AND IT CERTAINLY IS A VIEWPOINT, BUT I THINK ONE THING THAT WE OUGHT TO JUST ASK OURSELVES RHETORICALLY SPEAKING IS, DOES THE COUNTY HAVE TO PROVIDE ANIMAL CONTROL, SERVICES? FUNDAMENTALLY? IF THEY DID DO THEY HAVE TO PROVIDE THEM TO INSIDE CITY LIMIT RESIDENTS AND THERE ARE CERTAINLY SOMETHINGS IN STATE LAW THAT THEY WOULD BE REQUIRED TO ADMINISTER BUT THERE QUITE FRANKLY IS NO LEGAL REQUIREMENT THAT THEY ENFORCE LOCAL ORDINANCE THAT YOU APPROVE ADOPT. THAT IS NOT ANYTHING THAT THEY HAVE TO DO. SO WHEN I MAKE THE COMMENT IT'S NOT VERY CLEAR ON WHAT WE'RE COMPENSATING THEM FOR IS I DON'T THINK OR NOBODY HAS GONE THROUGH THE EXERCISE OF TRYING TO FIGURE OUT WHAT ELEMENT OF ANIMAL CONTROL IS SORT OF FOUNDATIONAL AND A BASELINE THAT TO YOUR POINT THEY SHOULD PROVIDE TO EVERY COUNTY RESIDENT VERSES WHICH ONE ENFORCES ORDINANCE IN THEORY THAT WE'RE HIRING THEM TO ENFORCE OUR ORDINANCES.

>> IF THERE IS A VALUE. >> CORRECT.

AND IN THE ABSENCE OF THAT VALUE, LIKE IT'S HARD TO REALLY KIND OF CAPTURE WHAT'S THE VALUE THAT'S BEING PROVIDED, RIGHT?

>> TO CLARIFY ONE THING YOU SAID ABOUT THE COUNTY DOESN'T HAVE TO ENFORCE OUR ORDINANCES, THAT'S IN THE ABSENCE OF AN AGREEMENT

TO DO SO. >> CORRECT

>> JUST TO CLARIFY. YOU KNOW, THEY DO HAVE TO ENFORCE UNDER THE CURRENT CONTRACTS.

BUT ABSENCE THAT AGREEMENT IS WHAT YOU ARE REFERRING TO.

I WANT TO CLARIFY. >> IT'S AN IMPORTANT DISTINCTION FOR SURE. ABSOLUTELY.

AND JUST TO FINISH A THOUGHT, WE DON'T HAVE TO PROVIDE LIBRARY SERVICES TO COUNTY RESIDENTS FREE OF CHARGE.

BUT WE DO NOW. YOU KNOW? WE DON'T HAVE TO PROVIDE FIRE AND EMS SERVICES OUT OF THE COUNTY REGARDLESS IF WE'RE GETTING PAID FOR IT OR NOT, AND THERE ARE A LOT OF THINGS GOING BOTH WAYS OF EITHER ENTITY BEING ABLE TO SAY, WELL I DON'T HAVE TO DO THAT.

RIGHT? AND THAT'S KIND OF GETTING INTO THE SENTIMENT AND SOME OF THE DIFFERENT VIEWPOINTS OF IT BUT AGAIN I THINK THE LACK OF CLARITY THAT CLEARLY DEFINES WHAT THE VALUES OF EACH OF THESE ARE, I THINK CREATES OPPORTUNITIES FOR DIFFERENT VIEWPOINTS VERSES IT BEING FACTUAL FINANCIAL DRIVEN FORMULA.

[01:30:04]

>> CERTAINLY FROM MY STANDPOINT. THE MORE WE DUG INTO SOME OF THE HISTORY AND YOU WERE SHARING THAT WITH ME AS WE WENT ALONG, AND I FOUND OUT SOME INFORMATION, THE MORE CONFUSING THE ADOPTED STRUCTURE BECAME TO ME BECAUSE I DIDN'T REALLY HAVE A BASIS, THIS IS WHY THIS NUMBER IS HERE AND THIS IS WHY WE DON'T DO THIS ON AN DATA DRIVEN BASIS. WE JUST KIND OF USE A NUMBER THAT WAS AGREED TO. NOT HAVING THE HISTORY OF HOW THOSE NUMBERS CAME ABOUT, THERE MAY HAVE BEEN SOMETHING ELSE GOING ON IN THAT PARTICULAR TIME SPAN OR SOMETHING IN THAT ENVIRONMENT THAT'S NO LONGER HERE.

I CAN'T ANSWER THAT QUESTION. WHAT I CAN ANSWER IS I KNOW WHAT'S HAPPENING RIGHT NOW. YOU KNOW? I KNOW WHAT THOSE NUMBERS ARE NOW.

I KNOW WHAT THAT RELATIONSHIP IS.

I'M 100 PERCENT OF THE MINDSET THAT OUR CITIZENS ARE BOTH THE CITY AND THE COUNTY ARE BEST SERVED WHEN THE CITY AND COUNTY ARE WORKING TOGETHER WITH SHARED SERVICES AND HAVE AN AGREEMENT LIKE THIS IN PLACE. YOU KNOW THE CITIZENS THAT LIVE IN VICTORIA COUNTY OR IN THE CITY OF VICTORIA ARE VICTORIA COUNTY RESIDENTS. NO DOUBT ABOUT IT.

TO THE EXTENT THAT CITY AND THE COUNTY CAN SHARE SERVICES AND HAVE THIS KIND OF AGREEMENT, I THINK IS YOU KNOW WE SHOULD APPLAUD THAT AND SUPPORT THAT AND BECAUSE I THINK THAT WORKS THE BEST FOR OUR CONSTITUENTS. THE REALITY IS THAT, IT IS A BUSINESS ARRANGEMENT AND LIKE ANY BUSINESS ARRANGEMENT THERE HAS TO BE EQUITY, RIGHT? IF ANY BUSINESS ARRANGEMENT IS GOING TO BENEFIT BOTH PARTIES AND IT BECOMES HEY, THIS IS SOMETHING GOOD FOR ALL OF US AND GOOD FOR OUR CONSTITUENTS, EVEN IN A PRIVATE SECTOR, IT'S GOOD FOR MY STOCKHOLDERS.

THAT ARRANGE MECHT HAS TO HAVE EQUITY.

WHAT PARTY AN IS GETTING OUT OF IT AND WHAT PARTY B IS GETTING OUT OF IT HAS TO BE SUPPORTED BY WHAT THEY ARE ALSO PUTTING INTO IT. SO, FROM THAT STANDPOINT, I THINK WHAT I SAW ON THE CURRENT CONTRACT IS THAT THE BONES OF IT ARE GOOD, RIGHT? THE OVERALL STRUCTURE.

I THINK IT'S IMPORTANT FOR OUR CITIZENS THAT THIS CONTRACT IS IN PLACE, BUT THERE NEEDS TO BE, I THINK, SOME CLARIFICATION AS MR. GARZA POINTED OUT. THERE NEEDS TO BE SOME MORE SPECIFIC PROVISIONS AND LANGUAGE THAT REALLY DEALS WITH ISSUES ABOUT, THIS IS HOW THIS IS GOING TO BE DONE AND DOESN'T LEAVE IT TO, WELL WE'LL FIGURE IT OUT WHEN WE GET THERE AS WE SAW WHEN WE GOT THERE, IT WAS KIND OF AN AGREEMENT TO AGREE IF WE MAY AGREE AND WE MAY NOT AND OBVIOUSLY YOU KNOW, WHEN WE APPROACH THE COUNTY AND I'M SPEAKING SPECIFICALLY TO THE LIBRARY, WE DID NOT AGREE BECAUSE THEY SAID, WE DON'T HAVE TO DO THAT UNDER THE CONTRACT SO WE'RE NOT GOING TO.

WELL, THAT'S PROBABLY A FLAW IN THE CONTRACT TO BE HONEST WITH YOU. IF THERE IS A FLAW IN THE CONTRACT THEN WE NEED TO ADDRESS IT IF THERE IS A FLAW IN THE CONTRACT THAT THE PERCENTAGE OF CALLS BASED ON REALITY AND NUMBERS THAT WE KNOW, THAT WE CAN VERIFY THOSE PERCENTAGE OF CALLS DON'T MATCH THE ACTUAL EXPENSES RELATED TO THE CALLS THAT NEEDS TO BE ADDRESSED. I WHOLEHEARTEDLY THINK THERE ARE AMENDMENTS TO THIS AND A PATH FORWARD THAT WILL BENEFIT THE CITIZENS AND THE CITY AND THE COUNTY BOTH CAN MOVE FORWARD AND BENEFIT CITIZENS BUT AS WE CURRENTLY IT IS, UNDER THIS CONTRACT BASED ON THE FACTS WE KNOW.

BASED ON THE CALL OUT. BASED ON THE EXPENSES AND ALL OF THOSE ITEMS, I THINK IT'S VERY CLEAR THAT THIS DOES NOT MEET THE CRITERIA AS IT'S CURRENTLY PUT TOGETHER OF AN EQUITABLE CONTRACT, SO FROM THAT STANDPOINT IN MY MIND I'D LIKE TO SEE SOME DISCUSSIONS ABOUT HOW DO WE ADDRESS THESE AND MAKE THIS CONTRACT BETTER. HOW DO WE BRING THIS IN LINE WITH WHAT'S HAPPENING RATHER THAN WHAT WAS HAPPENING HOWEVER LONG AGO WHEN NOBODY, YOU KNOW AT THIS TABLE ON THIS DAIS AND THE COUNTY DAIS WAS REALLY AROUND TO SAY, THAT'S WHERE THAT NUMBER CAME FROM.

WE KIND OF TOOK SOME GUESTS BASED ON PERCENTAGE, SO THAT'S MY THOUGHT ON IT. WELCOME ANY OTHER COMMENT.

>> YOU PUT IT NICELY. BASICALLY I'VE ALWAYS THOUGHT THE COUNTY TOOK ADVANTAGE OF THE PEOPLE WHO LIVED IN SIDE THE CITY LIMITS. THEY DO.

[01:35:01]

THEY DO EMS FOR PEOPLE THAT LIVE OUTSIDE THE COUNTY.

THEY DON'T PAY A FAIR PRICE OR DO IT FOR MOST OF THE PEOPLE THAT ARE COUNTY RESIDENTS THAT LIVE IN THE CITY AND PAY MOST OF THE TAXES. YES, THESE AGREEMENTS NEED TO BE CHANGED. THERE IS NO EQUITY.

THEY ARE TOTALLY OUT OF WHACK BUT IT SEEMS THE COUNTY IS ALWAYS THE BOTTOM LINE NUMBER IS ALL THEY CARE ABOUT.

THEY DON'T CARE ABOUT THE PEOPLE.

WE HAVE BEEN PAYING FOR EMS FOR PEOPLE OUT IN THE COUNTY FOR YEARS AND THEY ARE HAPPY WITH IT.

NOW WHEN IT STARTS TO BECOME AN ISSUE THEY WANT TO LOOK FOR AN ALTERNATIVE AND THAT'S FINE. THERE IS NO EQUITY.

THEY ARE TAKING ADVANTAGE OF THE PEOPLE, I PAY COUNTY TAXES AND EVERYONE UP HERE DOES AND THEY ARE NOT TREATING US FAIRLY AND SOMEHOW, THESE AGREEMENTS NEED TO CHANGE.

I DON'T UNDERSTAND WHY THEY CAN'T GIVE US LIBRARY? WE WANT TO FIX UP THE LIBRARY FOR EVERYBODY SO TELL ME WHY.

BECAUSE IT'S AN ASSET THAT THEY CAN HOLD ON TO NEGOTIATE A BETTER DEAL ON OTHER CONTRACTS. WE'RE PEOPLE IN THE COUNTY THAT TREAT EVERYONE FAIRLY. IT WILL NEVER BE FAIR.

WE PAID ROAD AND BRIDGE TAX AND THAT'S NOT EVEN BROUGHT UP.

THESE CONTRACTS, WE NEED TO EITHER GET OUT OF THEM OR REDO THEM SO THEY ARE MORE FAIR BECAUSE IT'S NOT FAIR TO THE CITIZENS THAT ALL OF US REPRESENT.

>> I HEAR WHAT YOU ARE SAYING AND SPEAKING OF FAIRNESS I DON'T THINK IT'S FAIR TO SAY THE COUNTY IS TAKING ADVANTAGE OF THE PEOPLE WHEN THEY ARE DOING WHAT'S IN THE CONTRACT.

THEY ARE ABIDING BY THE AGREEMENT THAT THE CITY ENTERED INTO AND THE CITY SIGNED OFF ON THIS AT SOME POINT.

LET ME FINISH. >> TEAR UP THE CONTRACT.

>> IF YOU ARE GOING TO SPEAK OVER ME IT WILL BE DIFFICULT IF THEY ARE ABIDING BY WHAT'S IN THE CONTRACT, I DON'T THINK IT'S FAIR TO SAY THEY DON'T CARE ABOUT THE PEOPLE AND THEY ARE TAKING ADVANTAGE OF US. THEY ARE ABIDING BY WHAT'S IN THE CONTRACT AND IF YOU DON'T LIKE WHAT'S IN THE CONTRACT THEN THE WAY YOU FIX THAT IS YOU CHANGE THE CONTRACT AND I THINK THAT'S WHAT WE'RE SUGGESTING. I'M NOT SUGGESTING THAT COUNTY'S DOING ANYTHING NEFARIOUS AND I'M NOT SAYING THEY DON'T CARE ABOUT CONSTITUENTS OR THAT THEY ARE TRYING TO STICK IT TO THE COUNTY, THEY ARE MORALLY FOLLOWING THE CONTRACT AGREED TO, AND IF THE CITY FEELS IT AGREED TO A CONTRACT IT NOW REGRETS MAYBE THAT'S WHERE WE ARE.

IT'S THE SAME WAY AS YOU KNOW, BLAMING BILL BELICHEK BECAUSE HE EXPLOIT AS LOOPHOLE IN THE RULE. HE DIDN'T WRITE THE RULE BUT SAYS, THIS IS WHAT THEY ARE. WHAT THE COUNTY IS DOING IS SAYING THIS IS THE CONTRACT AND WHAT WE'RE FOLLOWING.

HAVING SAID THAT I GO BACK TO WHAT I SAID.

IT'S NOT AN EQUITABLE CONTRACT. THE WAY WE FIX THAT IS READDRESS SOME OF THE PROVISIONS IN THIS CONTRACT.

>> I UNDERSTAND THEY ARE FOLLOWING THE CONTRACT AND YOU ARE ABSOLUTELY RIGHTTHEY ARE FOLLOWING THE CONTRACT BUT IF IT IS NOT FAIR TO THE PEOPLE THAT PAY THE TAXES THEN THEY ARE NOT TREATING THE PEOPLE FAIRLY THEY NEED TO RENEGOTIATE THE CONTRACT. I AGREE THEY ARE FOLLOWING THE CONTRACT. FINE.

THEY PASS ROAD AND BRIDGE TAX AND EVERYBODY PAYS THAT.

THAT DOESN'T MEAN IT'S FAIR TO EVERYONE THAT LIVES IN THE COUNTY AND THEY ARE TREATED EVERYONE FAIRLY.

YES, THEY ARE DOING A CONTRACT. THAT'S WHAT WE'RE ALL ABOUT.

WE'RE SUPPOSE TO MAKE EVERYTHING BETTER EVERYBODY IN THE CITY AND THEY SHOULD TRY TO MAKE EVERYTHING BETTER EVERYONE IN THE COUNTY AND THEY ARE NOT TREATING, WHETHER THEY ARE FOLLOWING THE CONTRACT CORRECTLY OR NOT THEY ARE NOT TREATING

PEOPLE INSIDE THE CITY FAIRLY. >> IF THEY ARE FOLLOWING THE CONTRACT THAT THE CITY AGREED TO.

>> I DON'T AGREE WITH IT. >> AT SOME POINT SOMEBODY IN THE CITY SAID I AGREE TO THIS. SO AT THIS POINT TO SAY THE COUNTY IS DOING THIS AND THAT WHEN THEY ARE DOING WHAT WAS AGREED TO BY OUR PREDECESSORS. IT'S SOMEWHAT NOT FAIR TO THEM.

HAVING SAID THAT, I THINK THIS IS A TOPIC THAT NEEDS A LOT OF DISCUSSION GOING FORWARD. I THINK WE'RE ALL GOING TO HAVE DISCUSSIONS AND THINK ABOUT BETTER WAYS TO IMPROVE THIS AND THERE NEEDS TO BE DISCUSSIONS TWO COUNTY.

WHETHER THAT HAPPENS AT THE EXECUTIVE LEVEL OR WE GO BACK TO PRIOR METHODOLOGIES WHICH I SAW IN THERE, THERE WERE COMMITTEES APPOINTED BY THE TWO GOVERNING BODIES AND THOSE COMMITTEES GOT TOGETHER AND MET, WHATEVER IT IS.

I THINK WE'VE REACHED THE POINT WHERE THE DATA AND THE STRUCTURE NO LONGER MATCH AND WE NEED TO ADDRESS IT.

[01:40:03]

>> AT THAT POINT, I ASK, I AGREE WITH YOU AS FAR AS EQUITABLE CONTENT OF THE AGREEMENT. DO WE BELIEVE THERE IS A WAY TO MEASURE EQUITY AS FAR AS SERVICES PROVIDED BY ANIMAL CARE? VERSES LIKE, IS THERE, DO YOU BELIEVE THERE'S AN AMOUNT THAT CAN BE IDENTIFIED SO THAT WE

CAN? >> YOU MEAN SPECIFIC TO ANIMAL

CONTROL? >> I'M USING THAT IS AN EXAMPLE.

ANY LIBRARY SERVICE, ANIMAL SERVICE.

FIRE AND EMS WOULD CLEARLY HAVE THE DATA BUT IN THE OTHER SITUATIONS IS THERE A WAY TO MEASURE DATA THAT WE, AS THE CITY WOULD BE ABLE TO ACCESS THAT AND MAYBE ASSIGN A MONETARY AMOUNT FOR THOSE SERVICES SO WHEN YOU APPROACH THE TABLE

EVERYTHING IS EQUITABLE? >> I DO THINK THERE IS A WAY TO GET THERE, BUT I THINK HOW WE GET THERE IS ENGAGING CONVERSATIONS WITH THEM. TO HOPEFULLY AGREE ON THAT METHODOLOGY BUT YES, I THINK THERE'S METHODOLOGY THAT CAN BE AGREED UPON THAT IS DEFENDABLE, THAT IS CLEAR, THAT IS BACKED BY WHETHER IT'S BUDGETS OR WHATEVER ELSE.

>> AT THE END OF THE DAY CONSENSUS, IT'S REACHED BECAUSE COMMUNICATION HAS HAPPENED. THAT COMMUNICATION IS GOING TO BE KEY IN THIS BETWEEN THE CITY AND THE COUNTY AND SO YOU KNOW, GOING FORWARD, IF WE CAN GET COMMUNICATION AND WE CAN SHARE INFORMATION THAT WE HAVE THEY'LL SHARE INFORMATION THEY HAVE AND WE CAN REACH A CONSENSUS ON THIS AND I'M CONFIDENT THAT WE CAN GET TO THE POINT THAT WE HAVE A VERY GOOD PICTURE OF WHAT ALL IS INVOLVED ON BOTH SIDES OF THE EQUATION.

>> OKAY. ANYTHING ELSE?

>> WELL, I WANT TO END WITH ONE THOUGHT.

IF IT'S OKAY? I THINK IT'S IMPORTANT FOR ME TO END WITH AN ACKNOWLEDGEMENT OF THE QUALITY OF THE SERVICE THAT OUR FIRE DEPARTMENT PROVIDES NOT ONLY TO RESIDENTS INSIDE THE CITY LIMIT BUT OUTSIDE, AS WELL AS OUR LIBRARY.

SOMETIMES WHEN THE TOPIC COMES UP IT'S VERY EASY TO TRY TO COMPARE OR TO EXPLORE OPTIONS FOR THIS AND THAT, BUT AT THE END OF THE DAY THE SERVICE THAT OUR MEN AND WOMEN PROVIDE AT THE FIRE DEPARTMENT AND THE LIBRARY THAT WE PROVIDE TO RESIDENTS IS TOP NOTCH. IF WE WERE TO TRY TO PUT SOME KIND OF VALUE AROUND THAT I WOULD SAY WE WOULD BE AT THE HIGH END OF THAT VALUE, AND SO I JUST THINK THAT AGAIN, IT'S IMPORTANT TO CALL A SPADE A SPADE.

THE SERVICE THAT WE PROVIDE FOR FIRE AND LIBRARY SERVICES IS TOP NOTCH AND AWARD WINNING AND VERY AHEAD OF IT'S TIME AND VERY AHEAD FOR COMMUNITY OF OUR SIZE AND OF COURSE LIBRARY AND FIRE LEADERSHIP DESERVE CREDIT FOR IT THAT BUT THAT CAN'T GET LOST IN THIS WHOLE CONVERSATION. WE OFFER AN AMAZING PRODUCT.

>> I WANT TO THROW IN WHEN YOU SAY FIRE YOU INCLUDE EMS SERVICE

IN THAT, AS WELL? >> YES.

>> BECAUSE YOU SPECIFICALLY USED THE WORD, FIRE.

I WANT TO MAKE SURE THAT EVERYBODY THAT'S LISTENING TO THIS KNOWS THAT YOU ARE TALKING ABOUT TOP NOTCH QUALITY THAT WE PROVIDE IN BOTH AREAS OF EMERGENCY SERVICE.

I'M PROBABLY GETTING INTO THE WEEDS.

>> IT'S OKAY. >> ALRIGHT.

MR. GARZA DO YOU HAVE ANYTHING ELSE UNDER THE CITY MANAGER REPORTS THIS EVENING AND I UNDERSTAND WE DO NOT HAVE EXECUTIVE SESSION. ALRIGHT.

WITH THAT THEN WE ARE OUT AT 6:47.

* This transcript was compiled from uncorrected Closed Captioning.