[ ♪ MUSIC PLAYING ♪ ] >> Mayor Guajardo: GOOD MORNING EVERYONE. THANK YOU FOR JOINING US HERE AT CITY HALL AND IN COUNCIL CHAMBERS. I'D LIKE TO CALL THIS MEETING TO ORDER. OUR INVOCATION TODAY WILL BE GIVEN BY PASTOR ROB BAILEY WITH SOUTHSIDE COMMUNITY CHURCH. PASTOR. >> LET'S PRAY. OUR HEAVENLY FATHER, WE THANK YOU FOR THE PRIVILEGE OF LIVING IN THIS BEAUTIFUL CITY AND WE THANK YOU FOR OUR POLICE OFFICERS FIREFIGHTERS AND OTHER FIRST RESPONDERS. WE PRAY THAT YOU WOULD PROTECT THEM TODAY AS THEY KEEP US SAFE. FATHER, WE THANK YOU FOR THE LEADERSHIP OF THIS CITY. WE THANK YOU FOR OUR MAYOR. WE THANK YOU FOR THE CITY COUNCIL MEMBERS AND PRAY THAT YOU WOULD BLESS THEM AS THEY LISTEN, DELIBERATE, AND DECIDE. WE GIVE THIS IN JESUS' NAME, AMEN. >> Mayor Guajardo: AMEN. THANK YOU, PASTOR. AND THIS MORNING OUR PLEDGE OF ALLEGIANCE TO THE UNITED STATES FLAG AND TO THE TEXAS STATE FLAG WILL BE LED BY ELIZABETH FRANCO AND SHE IS A 12th GRADER AT HAROLD T. BRANCH ACADEMY. >> PLEASE JOIN ME IN THE PLEDGE OF ALLEGIANCE. [PLEDGE OF ALLEGIANCE] >> PLEASE JOIN ME IN HONORING THE TEXAS FLAG. [HONORING THE TEXAS FLAG] >> Mayor Guajardo: THANK YOU, ELIZABETH. GOOD LUCK IN YOUR STUDIES. MS. HUERTA, WOULD YOU PLEASE CALL THE ROLL? [ROLL CALL] >> City Secretary: MAYOR AND COUNCIL, A QUORUM OF THE COUNCIL AND THE REQUIRED CHARTER OFFICERS ARE PRESENT TO CONDUCT THE MEETING. >> Mayor Guajardo: NEXT WE HAVE THE CITY MANAGER'S COMMENTS AND UPDATE ON CITY OPERATIONS. MR. ZANONI. >> Zanoni: GREAT. THANK YOU. GOOD MORNING, MAYOR AND CITY COUNCIL MEMBERS AND MEMBERS OF THE COMMUNITY. THIS MORNING WE DO HAVE TWO ITEMS ON THE CITY MANAGER'S REPORT. AND THE FIRST ONE IS TO INTRODUCE FORMALLY, BECAUSE I KNOW SHE HAS MET WITH YOU AND THE COUNCIL INDIVIDUALLY, BUT TO INTRODUCE OUR NEW VISIT CORPUS CHRISTI CEO, BROOK KAUFMAN. SHE'S GOING TO COME UP IN A MOMENT BUT EARLIER THIS YEAR ON FEBRUARY 20th THE BOARD OF DIRECTORS FOR VISIT CORPUS CHRISTI SELECTED BROOK TO LEAD VISIT CORPUS CHRISTI, WHICH IS WE KNOW THE CITY'S OFFICIAL DESTINATION MANAGEMENT ORGANIZATION THAT THE CITY FUNDS CONSIDERABLY, ALMOST 99%, I THINK IS THE FUNDING THAT GOES FROM US TO THEM. JUST A LITTLE ON BROOK. SHE HAS MORE THAN A DECADE OF LEADERSHIP EXPERIENCE IN TRAVEL AND TOURISM. SHE WAS AN EASY PICK FOR THE COMMITTEE MEMBERS WHO INTERVIEWED NUMEROUS CANDIDATES TO FILL THAT VACANCY. BEFORE JOINING US HERE IN SOUTH TEXAS, BROOK PREVIOUSLY LED VISIT RAPID CITY IN RAPID CITY, SOUTH DAKOTA. AND THEN ALSO VISIT CASPER IN CASPER WYOMING. SO A LITTLE BIT OF A DIFFERENCE FROM UP THERE TO DOWN HERE BUT SHE'S READY FOR THE CHALLENGE. AND THERE IN HER POSITION SHE DROVE MANY INITIATIVES TO INCLUDE BRANDING, SPORTS COMMISSION DEVELOPMENT, SUSTAINABILITY, AND HOSPITAL TRAINING AS WELL. SO BROOK OFFICIALLY STARTED ON APRIL 15 WITH VISIT CORPUS CHRISTI AND TODAY MARKS HER TWO WEEKS, IN FACT. SHE'S BEEN HERE TWO WEEKS. WE'RE GOING TO CALL HER UP TO THE MICROPHONE JUST TO SAY A FEW WORDS TO THE CITY COUNCIL AND THE COMMUNITY HERE AT OUR CITY COUNCIL MEETING. BROOK. >> THANK YOU, MR. CITY MANAGER. YOU'RE VERY GENEROUS. THANK YOU, MAYOR, MEMBERS OF THE COUNCIL. MANY OF YOU I HAVE HAD THE OPPORTUNITY TO MEET WITH. MY FIRST INTERVIEW WAS A ZOOM CALL AND THE BOARD WAS -- THEY WERE IN SWEATERS AND I'M LIKE I DON'T UNDERSTAND WHAT'S GOING ON HERE. LIKE, I'M IN SOUTH DAKOTA, YOU'RE IN SOUTH TEXAS. THE FACT THAT YOU'RE HAVING AN ICE STORM TERRIFIES ME. NO, NOT REALLY BUT I WAS LIKE, GOOD, I FIT RIGHT IN. NO PROBLEM. SO THE BOARD WAS VERY CHARMING ON THE ZOOM INTERVIEW. ALSO THEN IN PERSON. THE COMMUNITY HAS BEEN SO WELCOMING. I APPRECIATE ALL OF YOU TAKING THE TIME TO MEET WITH ME INDIVIDUALLY. I VIEW ONE OF OUR MOST IMPORTANT PARTNERSHIPS WITH THE CITY. MANY PEOPLE HAVE ASKED ME WHAT ARE YOU GOING TO DO IN THE FIRST 100 DAYS. I DO HAVE A PLAN BUT I THINK THERE ARE LONGER PLAYS. THE FIRST 100 DAYS WILL BE RELATIONSHIP BUILDING. YOU'RE ALSO GOING TO SEE US FOCUS ON GROUP SALES EFFORTS. WE ARE A HEAVY LEISURE MARKET. I DO SEE ADDITIONAL OPPORTUNITIES WITH CONVENTION SALES. THIRD, WE DID STAND UP A SPORTS COMMISSION WHEN MY PREDECESSOR GOT HERE. I THINK IT'S TIME FOR 2.0, WHAT DOES THAT LOOK LIKE IN THE FUTURE? WHAT ARE THE ASSETS WE NEED, THE INFRASTRUCTURE, THE STAFFING. SOME REALLY NEAT THINGS. NEVER A BAD DAY TO BE IN TOURISM. I'M VERY PROUD TO WORK WITH YOU TO REPRESENT A SECTOR THAT IS SO IMPORTANT TO OUR LOCAL ECONOMY. WITH THAT, I KNOW THERE ARE A FEW OF YOU STILL THAT I GET THE OPPORTUNITY TO CONNECT WITH AND I LOOK FORWARD TO BUILDING A LONG AND BENEFICIAL RELATIONSHIP WITH OUR CITY. MAYOR, MR. CITY MANAGER, THANK YOU SO MUCH. >> Mayor Guajardo: WELCOME. THANK YOU, BROOK. >> Zanoni: THANK YOU, BROOK. SHE'LL BE BACK IN A COUPLE OF WEEKS TO PRESENT THE ANNUAL REPORT. YOU'LL SEE HER PRESENTING SOME OF THE MATERIAL OF HOW THE VISIT CORPUS CHRISTI BUREAU DID IN THE LAST YEAR AND WHAT THE FORECAST IS FOR THE SUMMER. OKAY. THEN MAYOR AND COUNCIL, OUR SECOND ITEM ON THE AGENDA IS TO ACKNOWLEDGE OUR OWN CITY FIRE CHIEF, BRANDON WADE. AND YOU MAY HAVE SEEN THIS IN THE NEWS ALREADY BUT WE WANTED TO HIGHLIGHT IT HERE. LAST FALL IN SEPTEMBER, TEXAS GOVERNOR GREG ABBOTT ANNOUNCED THE APPOINTMENT OF CHIEF WADE TO THE TEXAS COMMISSION ON FIRE PROTECTION. AND THAT APPOINTMENT LAST FALL WAS TO COMPLETE THE TERM OF A COMMISSIONER THAT WAS SET TO EXPIRE IN FEBRUARY OF THIS YEAR. SO THERE WERE A FEW MONTHS REMAINING IN THAT TERM AND THE CHIEF WAS APPOINTED AS AN INTERIM. WE WEREN'T FOR SURE IF IT WAS GOING TO BE A PERMANENT APPOINTMENT OR NOT BUT WE'RE HAPPY TO ANNOUNCE THAT THE GOVERNOR REAPPOINTED HIM IN THE PERMANENT TERM IN THIS TEXAS COMMISSION ON FIRE PROTECTION. THAT TOOK PLACE IN APRIL, APRIL 4th. THE GOVERNOR APPOINTED HIM AND FIVE OTHER FIRE PROFESSIONALS TO A FULL TERM ON THIS COMMISSION. THE OTHER FIRE CHIEFS AND CAPTAINS WERE FROM CEDAR PARK, SAN ANTONIO, AMARILLO, ROANOKE, AND GEORGETOWN AS WELL. CHIEF WADE'S APPOINTMENT IS FOR A SIX-YEAR TERM AND THAT TERM WILL END IN 2031. SO IN TOTAL, I TALKED ABOUT FIVE APPOINTEES JUST MADE, BUT IN TOTAL THIS COMMISSION HAS 13 MEMBERS THAT ARE ALL APPOINTED BY THE GOVERNOR AND THEY HAVE TO BE CONFIRMED BY THE SENATE. IT WAS ESTABLISHED IN 1991, THIS FIRE PROTECTION COMMISSION, AND ITS JOB IS TO AID IN THE PROTECTION OF LIVES AND PROPERTY OF TEXAS RESIDENTS BY SETTING AND ENFORCING STANDARDS FOR FIRE PROTECTION PERSONNEL, INCLUDING TRAINING CERTIFICATION AND COMPLIANCE. SO THE COMMISSION ADVISES FIREFIGHTERS AND THE STATE IN MATTERS TO PROTECT LIVES AND SAFETY. AND SO SOMEBODY LIKE CHIEF WADE, WHO IS VERY EXPERIENCED, WE'RE GLAD TO HAVE RECRUITED HIM HERE, SPENDING MANY DECADES IN THE AUSTIN FIRE DEPARTMENT AND NOW HERE LEADING OUR OPERATION. HE BRINGS THAT WEALTH OF KNOWLEDGE AND EXPERIENCE TO THIS COMMISSION TO HELP SET POLICY STATEWIDE. THE COMMISSION ALSO PROVIDES RESOURCES AND ASSISTANCE TO TEXAS FIRE DEPARTMENTS AND REVIEWS POLICIES REGARDING REGULATIONS FOR PAID FIRE DEPARTMENTS SUCH AS OURS, AND FIRE STANDARDS WITHIN THE STATE. WE WANT TO CONGRATULATE CHIEF WADE FOR THIS APPOINTMENT. WE'RE PROUD AND HAPPY HE'S HERE LEADING OUR FIRE DEPARTMENT. THIS ADDS TO THE PROOF THAT HE'S A HIGHLY-QUALIFIED INDIVIDUAL LEADING OUR TEAMS HERE. AND NOW WITH THIS SIX-YEAR APPOINTMENT TO THE COMMISSION WILL HELP TO INFORM POLICY STATEWIDE. CHIEF, DO YOU WANT TO SAY A FEW REMARKS FOR THE COUNCIL AND COMMUNITY? >> SO THANK YOU, MAYOR, COUNCIL FOR THE RECOGNITION, AND ALSO EXPRESS MY GRATITUDE TO PETER AND MICHAEL RODRIGUEZ FOR THEIR SUPPORT IN MY APPOINTMENT FROM THE GOVERNOR TO BE A PART OF THE COMMISSION. AND WITH THAT, IT IS A PRIVILEGE AND AN HONOR TO REPRESENT THE CITY OF CORPUS CHRISTI ON THE TEXAS COMMISSION ON FIRE PROTECTION. AS PETER SAID, WE DO HELP SET THE STANDARDS AND REGULATE TEXAS FIRE DEPARTMENTS TO ENSURE THAT OUR FIREFIGHTERS ARE PROVIDING THE HIGHEST LEVEL OF SERVICE TO THE CITIZENS OF THE STATE OF TEXAS. AS WE JUST HAD VISIT CORPUS CHRISTI, TO ALL OF OUR VISITORS THAT COME IN. WE PROTECT EVERYBODY THAT'S WITHIN NOT ONLY OUR CITY BUT OUR STATE. AND WE WILL CONTINUE TO PUSH TO SET THE STANDARD FOR THE FIRE SERVICE ACROSS THE NATION. I BELIEVE TEXAS HAS SOME OF THE BEST FIREFIGHTERS IN THE COUNTRY, IF NOT THE WORLD, AND MANY OF THEM ARE RIGHT HERE IN THE CITY OF CORPUS CHRISTI. SO WITH THAT, I WILL CONTINUE TO PUSH AND ADVANCE THE TEXAS FIRE SERVICE. WE ALREADY HAVE A NUMBER OF OUR MEMBERS FROM THE CORPUS CHRISTI FIRE DEPARTMENT THAT ARE NOW SERVING ON SUBCOMMITTEES WITH THE TEXAS COMMISSION ON FIRE PROTECTION TO HELP SET TRAINING AND REGULATIONS, WHICH IS A GREAT THING TO HAVE IS TO HAVE THAT LOCAL EXPERTISE AND INFLUENCE. THAT WILL ONLY CONTINUE TO DRIVE OUR SERVICE TO OUR COMMUNITY HERE. THANK Y'ALL FOR YOUR SUPPORT AND, AGAIN, THANK YOU, PETER FOR YOUR SUPPORT FROM ME AND GOVERNOR ABBOTT FOR THIS APPOINTMENT. ALSO, WITH THE NOMINATION WAS THROUGH THE TEXAS FIRE CHIEF'S ASSOCIATION. THEY GET TO NOMINATE. I WAS ONE OF THEIR NOMINATIONS TO THE GOVERNOR FOR THAT APPOINTMENT. SO, THANK YOU. [APPLAUSE] >> Mayor Guajardo: CONGRATULATIONS, CHIEF WADE. [APPLAUSE] >> Zanoni: MAYOR, THAT CONCLUDES THE CITY MANAGER'S REPORT FOR THIS MORNING. >> Mayor Guajardo: GREAT. THANK YOU, PETER. WE HAVE TEN MINUTES BEFORE NOON BUT WE WILL GO AHEAD AND -- DO WE HAVE THE LIST READY? WE'LL GO AHEAD AND START. AS WE PROCEED TO ITEM F, PUBLIC COMMENT, I'D LIKE TO TAKE A MOMENT TO EMPHASIZE THE IMPORTANCE OF THIS BUSINESS MEETING. WE DO HANDLE SIGNIFICANT MATTERS CONCERNING TAXPAYER DOLLARS, MAKING IT IMPERATIVE THAT WE UPHOLD THE HIGHEST STANDARDS OF DECORUM AND ADHERENCE TO OUR POLICIES. OUR CORE PRINCIPLES OF OPENNESS, TRANSPARENCY, AND INCLUSIVENESS GUIDE OUR ACTIONS AND WE AIM TO ACHIEVE THEM WHILE RESPECTING OUR CITY COUNCIL POLICY, WHICH HAS BEEN IN PLACE FOR 30 YEARS. PUBLIC COMMENT SERVES AS ONE AVENUE FOR COMMUNICATION BUT CERTAINLY NOT THE ONLY METHOD. YOU CAN ALSO REACH OUT TO MEMBERS OF THIS COUNCIL BY WAY OF PHONE CALL, E-MAILS, OR EVEN SCHEDULING AN IN-PERSON APPOINTMENT. WITH THAT SAID, LET'S PROCEED TO PUBLIC COMMENT, KEEPING IN MIND THE IMPORTANCE OF DECORUM AND THE ADHERENCE TO OUR POLICY. BEFORE I BEGIN, I'D LIKE TO ASK OUR CITY ATTORNEY, MILES RISLEY, TO PLEASE REVIEW THE COUNCIL MEETING RULES OF DECORUM. [RULES OF DECORUM] >> Mayor Guajardo: THANK YOU, MR. RISLEY. INDIVIDUALS WILL BE CALLED UPON IN THE ORDER THEY SIGNED UP ELECTRONICALLY. WE WILL FIRST HERE IN-PERSON COMMENTS FOLLOWED BY VIRTUAL PUBLIC COMMENTS. TODAY WE HAVE A TOTAL OF TEN PUBLIC SPEAKERS. RESIDENTS OF CORPUS CHRISTI WILL BE GIVEN PRIORITY OVER NON-RESIDENTS. PLEASE STATE YOUR NAME AND THE CITY IN WHICH YOU LIVE BEFORE BEGINNING YOUR COMMENTS. YOU HAVE TWO OPPORTUNITIES TO MAKE PUBLIC COMMENT ON AN AGENDA ITEM OR A CITY-RELATED BUSINESS. FIRST IS AT THIS PRESENT TIME AND SECOND IS WHEN THE ITEM IS ACTUALLY HEARD. PLEASE SELECT ONE OPTION. CITIZEN COMMENTS ARE LIMITED TO THREE MINUTES WHILE NON-RESIDENT COMMENTS ARE LIMITED TO ONE MINUTE. A VISIBLE TIMER POSITIONED NEAR THE CITY SECRETARY'S DESK WILL ASSIST IN MANAGING THAT ALLOTTED TIME. AND IF YOU HAVE A PETITION OR ANY RELEVANT INFORMATION THAT YOU WOULD LIKE US TO HAVE, IF YOU'LL PLEASE PRESENT IT TO MS. HUERTA PRIOR TO SPEAKING. SO WITH THAT, WE WILL START WITH MR. STEVEN CLEPPER. >> MAYOR, COUNCIL, STEVE CLEPPER, DISTRICT 2. ITEM NO. 22 CAUGHT MY ATTENTION, PARTICULARLY WHICH IS THE MOTION TO APPROVE THE 2025 ANNUAL AUDIT PLAN. WHAT CAUGHT MY ATTENTION WAS THE SENTENCE IN THE AGENDA MEMO THAT SAID, WRITTEN BY THE CITY AUDITOR, THAT IT WAS ORIGINALLY A PLAN THAT THIS ITEM WOULD COME TO THE COUNCIL JANUARY 14th BUT WAS POSTPONED BY LEADERSHIP. NOW, A COUPLE OF THINGS ABOUT THAT THAT REALLY BOTHERED ME. ONE IS IT DIDN'T SAY WHAT LEADERSHIP MEANT. AND I THINK LEADERSHIP MEANT SOMEONE ON THE FIFTH FLOOR, PROBABLY. IT ALSO DIDN'T MENTION THAT THE CITY CODE, CHAPTER 12.5, SAYS THAT EVERY CALENDAR YEAR THE AUDITOR, THROUGH THE AUDIT COMMITTEE, WILL PRESENT THE ANNUAL AUDIT PLAN WITHIN 30 DAYS. IT'S BEEN 120 DAYS NOW BUT AT LEAST THEY WILL BE ABLE TO PRESENT IT TODAY, SO THAT'S A GOOD THING. NOW, I CAN UNDERSTAND WHY SOMEONE ON THE FIFTH FLOOR WOULDN'T WANT THE AUDIT PLAN TO PROCEED EXPEDITIOUSLY. AFTER ALL, THE REPORT, THE MEMO WASN'T TOO PLEASANT. THE UNDERLYING ISSUE IS INDEPENDENCE. AND INDEPENDENCE DOESN'T JUST MEAN INDEPENDENCE OF THE AUDITOR HIMSELF. IT MEANS ORGANIZATIONAL INDEPENDENCE. IS THE ORGANIZATION SUFFICIENTLY ENABLING THE AUDITOR AND HIS STAFF TO DO HIS JOB WITHOUT FEAR OF RETRIBUTION? AND I THINK YOU SHOULD ALL ASK THAT QUESTION BASED ON WHAT YOU'VE SEEN. NOW, I SAW SOME COMMENTS AT THE AUDIT COMMITTEE MEETING THAT WERE TOTALLY OUT OF LINE, IN MY OPINION. AND MY OPINION IS BASED ON BEING THE FORMER CITY AUDITOR FOR AUSTIN FOUR YEARS. FOR BEING A CERTIFIED INTERNAL AUDITOR. GEORGE HOLLAND IS THE CURRENT CITY AUDITOR. HE'S AUDITOR NUMBER FOUR. THIS CITY HAS HAD A TORTUROUS PATH OF ESTABLISHING A VIABLE, INDEPENDENT INTERNAL AUDIT ORGANIZATION. THE FIRST ONE LASTED TWO YEARS. AUDITOR NUMBER TWO LASTED FOR FIVE YEARS. SHE WAS TERMINATED IN EXECUTIVE SESSION BY THE CITY COUNCIL THROUGH THE AUDIT COMMITTEE, I SUPPOSE. I WAS WORKING FOR THE CITY THEN. I WORKED FOR THE CITY 27 YEARS SO I OBSERVED MANY AUDITORS COME AND GO. AUDITOR NUMBER THREE, AFTER AUDITOR NUMBER TWO WAS FIRED, CAME IN AND SHE WAS TERMINATED BECAUSE SHE COULDN'T GET HER CERTIFICATION. AUDITOR NUMBER FOUR, GEORGE HOLLAND, IS VERY WELL QUALIFIED. >> Mayor Guajardo: THANK YOU, MR. CLEPPER. >> Zanoni: DO YOU MIND IF I HAVE A POINT OF PRIVILEGE? JUST TO MAKE CLEAR FOR THE COMMUNITY AND THE RECORD, NO ONE ON THE FIFTH FLOOR HAD ANYTHING TO DO WITH THE MEMO NOR HAVE WE WITHHELD AN AGENDA ITEM RELATIVE TO THE AUDITOR. WE KNOW THAT THE AUDITOR REPORTS TO THE MAYOR AND CITY COUNCIL AND SO WE -- I DON'T, THE CITY MANAGER, MYSELF OR NONE OF THE DEPUTIES OR ASSISTANT CITY MANAGERS GET INVOLVED IN THE AUDIT PLANS, PLACEMENT OF ITEMS ON THE CITY COUNCIL AGENDA. WE ALL CLEARLY KNOW THE AUDITOR REPORTS TO INDEPENDENTLY THE MAYOR AND COUNCIL. AND THEREFORE WE WOULDN'T BE TAKING THINGS OFF THE AGENDA OR ADDING THINGS ON THE AGENDA OR MANAGING THAT. SO I SUSPECT THE WORD "LEADERSHIP" IN THE MEMO REFERS TO THE MAYOR AND COUNCIL. >> Mayor Guajardo: THANK YOU, MR. ZANONI. NEXT WE HAVE SUSIE SALDANA. >> SUSIE LUNA SALDANA, DISTRICT 2. I COME BEFORE YOU TODAY BECAUSE I MISSED THE OPPORTUNITY, UNFORTUNATELY, TO COME RIGHT BACK AFTER OUR LAST MEETING, IN WHICH THERE WAS A QUESTION SAID ABOUT ME WEARING HATS. WELL, I WEAR HATS FOR A MEDICAL REASON. I HAVE JUST PROVIDED THAT INFORMATION TO YOUR LEGAL COUNSEL. YOU KNOW WHEN YOU HAVE A MEDICAL PROBLEM, THE FIRST THING YOU DO IS NOTIFY PEOPLE IF THEY HAVE A QUESTION ABOUT IT. YOU DON'T RUN AND YOU DON'T HIDE. YOU GO AHEAD AND SUPPLY IT. MAYOR, I WANT TO THANK YOU FOR YOUR CONSIDERATION IN THIS MATTER BECAUSE WHEN YOU DO THINGS THAT ARE RIGHT, I'M GOING TO BRING THEM UP. WHEN YOU DO THINGS THAT ARE WRONG, I'M GOING TO BRING THEM UP, AS LONG AS IT'S THE TRUTH. I'VE COMPLIMENTED SOME OF YOU AND I'M COMPLIMENTED A LOT OF YOU. I'VE ALSO GOTTEN ON YOUR CASE IF I FEEL THAT THERE'S PROBLEMS. AND, UNFORTUNATELY, I FEEL THAT THERE'S A PROBLEM. WHEN ANY COUNCILPERSON SUES THE CITY, I'M NOT GOING TO BACK AWAY FROM THAT, IT IS MY OPINION AND I WILL UPHOLD THAT. AS A MATTER OF FACT, EVEN OUR PRESIDENT HAS UPHELD THE FREEDOM OF SPEECH. SO I WILL CONTINUE TO EXPRESS IT, WHETHER IT'S HERE ON TEATIME. BUT AS FAR AS THE BUSINESS OF THE CITY, ONE OF THE THINGS I WANT TO EXPRESS THAT I'M GRATEFUL FOR IS THE WEALTH THAT YOU ARE BUILDING. BECAUSE I HEAR THAT THEY'RE DOING GOOD. THAT THEY'RE STARTING TO PRODUCE WATER AND THAT'S FOR OUR IMMEDIATE USE. I DON'T WANT YOU TO LOSE SIGHT OF THE FACT THAT I FEEL WE STILL NEED A DESAL PLANT AND THAT THAT NEEDS TO BE DONE. I WOULD PREFER IT IN A DIFFERENT ISSUE BUT I DO WANT A DESAL PLANT FOR OUR PEOPLE. WE NEED TO HAVE WATER. AND I THANK YOU FOR TAKING THE STEPS NECESSARY TO GET THEM. I APPRECIATE YOUR HELP. I APPRECIATE IT WHEN YOU'RE RIGHT AND I'M CERTAINLY GOING TO TELL YOU WHEN YOU'RE WRONG. HAVE A BLESSED DAY. >> Mayor Guajardo: THANK YOU, MS. SALDANA. >> Campos: STATEMENT OF FACT IS I, SYLVIA CAMPOS, AM NOT SUING THE CITY. IT IS A PETITION FOR DISCOVERY. THANK YOU. >> Mayor Guajardo: NEXT WE HAVE DR. CHRISTINA NELSON. >> MAYOR, COUNCIL MEMBERS, THANK YOU FOR HEARING ME TODAY. MY NAME IS DR. CHRISTINA NELSON AND I AM HERE PROUDLY REPRESENTING THE CHILDREN'S ADVOCACY CENTER OF THE COASTAL BEND. I SERVE AS THE BOARD PRESIDENT AND I WANT TO UPDATE YOU ON A MATTER THAT WE ARE HANDLING NOW. OKAY. SO THE CHILDREN'S ADVOCACY CENTER OF THE COASTAL BEND WAS NOTIFIED BY THE CHILDREN'S ADVOCACY CENTER OF TEXAS THAT NUECES COUNTY HAS BEEN REMOVED FROM THE CACCB'S DESIGNATION SERVICE AREA EFFECTIVE APRIL 22. IN SEPTEMBER OF 2024, LEADERSHIP AT THE CACCB BECAME AWARE OF CONCERNS REGARDING A MATTER HANDLED BY THE CENTER. THE CACCB TAKES ALL CONCERNS REGARDING ITS SERVICE SERIOUSLY AND TOOK IMMEDIATE STEPS TO INVESTIGATE THE SITUATION. FOLLOWING AN INTERNAL INVESTIGATION, THE CACCB IMPLEMENTED CORRECTIVE ACTIONS TO ADDRESS THE ISSUE AND INFORMED THE CONCERNED PARTIES. DESPITE THESE EFFORTS, ON MARCH 17, 2025 THE CACCB RECEIVED A LETTER FROM THE NUECES COUNTY DISTRICT ATTORNEY'S OFFICE INDICATING WHEN CORRECTIVE MEASURES ARE IN PLACE THE OFFICE WILL ACCEPT FILES REGARDING INTERVIEWS. THEY ARE EAGER TO ENGAGE WITH THE D.A.'S OFFICE TO RESOLVE THIS. THEY ISSUED THE FOLLOWING STATEMENT. OUR PRIORITY IS ENSURING THE SAFETY OF ABUSED CHILDREN AND THEIR FAMILIES. WHILE THE LOSS OF NUECES COUNTY FROM OUR SERVICE AREA IS A SIGNIFICANT CHALLENGE, OUR FOCUS REMAINS ON CONTINUING TO PROVIDE UNINTERRUPTED SUPPORT TO THE CHILDREN AND FAMILIES WHO DEPEND ON US. CHILDREN WHO ARE PREVIOUSLY RECEIVING SUPPORT FROM THE CACCB WILL CONTINUE TO BE ABLE TO DO SO. WE ARE ACTIVELY COMMUNICATING WITH OTHER CHILDREN'S ADVOCACY CENTERS OUTSIDE OF OUR SERVICE AREA TO ENSURE THE NEW CHILDREN AND FAMILIES ARE SERVED PROMPTLY AND EFFECTIVELY. IN 2024, THE CACCB PROVIDED SERVICES TO OVER 1,000 CHILDREN ACROSS TEN COUNTIES, INCLUDING 525 CHILDREN FROM NUECES COUNTY. THE MAJORITY OF WHOM RESIDE IN CORPUS CHRISTI. AS THIS MATTER IS STILL ONGOING, THE CACCB IS UNABLE TO PROVIDE FURTHER COMMENT UNTIL THE REVIEW IS COMPLETED. AN UPDATED STATEMENT WILL BE ISSUED AT THE TIME. THANK YOU SO MUCH. >> Mayor Guajardo: THANK YOU, DR. NELSON. JASON HALE. >> I HAVE A PRESENTATION BUT IT'S NOT SHOWING UP ON THE SCREEN. THERE WE GO. ALL RIGHT. JASON HALE, CORPUS CHRISTI. GOOD AFTERNOON, COUNCIL MEMBERS. TODAY I'D LIKE TO ADDRESS A STAFF PRESENTATION GIVEN TO COUNCIL ON MARCH 25th. THE OMISSION OF CRITICAL DETAILS AND CONFLICTING INFORMATION ON THE TIMING OF FAR-FIELD MODELING. PUBLIC INFORMATION REQUEST REVEALED A DOCUMENT SENT TO CITY STAFF FROM GHD ON MARCH 19 DETAILING APPROACHES FOR MODELING THE INNER HARBOR DISCHARGE. ON MARCH 25 WE ALL DISCOVERED THAT GHD WAS USING A LOCAL SCALE 3-D MODELING IN ORDER TO SIMULATE DIFFERENT DISCHARGE SCENARIOS. IN THE MARCH 19th DOCUMENT WE FIND THAT GHD WAS ENGAGED IN A DEEPER DIVE INTO THE MODELING. FIRST GHD STATES THEY ARE EXPANDING THE MODELING ENCOMPASSING CORPUS CHRISTI BAY, CONNECTED ESTUARY BODIES AND GULF OF MEXICO WATERS. THE FAR-FIELD MODEL IS WHAT THE PUBLIC AND WHAT SOME COUNCIL MEMBERS WANTED YET STAFF DID NOT PRESENT THIS INFORMATION. NEXT WE ALSO FIND THAT GHD WOULD CONFIRM THE FINDINGS OF NEAR-FIELD MODELING TO CONFIRM THE AGREEMENT BETWEEN THE MODELS AND COULD RUN DIFFERENT SCENARIOS AS COUNCIL MEMBERS OR INTEREST GROUPS REQUIRE. THE ACKNOWLEDGMENT THAT GHD WOULD CONDUCT ADDITIONAL RUNS BASED ON REQUESTS FROM COUNCIL AND INTEREST GROUPS WAS OMITTED FROM THE PRESENTATION. FINALLY, WE THEN FIND THAT GHD CAN ALSO ADJUST THE MODEL TO DIRECTLY CONSIDER THE POTENTIAL CREATION OF HYPOXIC ZONES IF REQUIRED. THE PROPOSAL TO LOOK AT HYPOXIA WAS OMITTED FROM THE PRESENTATION. THESE OMISSIONS ARE CONFOUNDED WITH A STATEMENT BY CHRIS BENJAMIN FROM GHD. WHEN ASKED HOW LONG THE MODELING WAS GOING TO TAKE, HE REPLIED WE'RE ABOUT HALFWAY THROUGH OUR WORK SO WE ESTIMATE WE HAVE ABOUT TWO MONTHS LEFT TO FINISH. ON MARCH 21, IN A MEMO, JASON STATED AT THE APPROPRIATE TIME THE TEAM WILL DEVELOP A MODEL. YET FIVE DAYS LATER, GHD STATES THEY ARE HALFWAY DONE . IN SUMMARY, THESE OMISSIONS AND THE CONFUSING TIMELINE DRAWS INTO THE QUESTION THE STAFF'S LACK OF TRANSPARENCY TO THE COUNCIL AND THE PUBLIC ON THE BIGGEST PROJECT THE CITY OF CORPUS CHRISTI HAS EVER TAKEN ON. TO ME, IT SEEMS LIKE THEY'RE TRYING TO KEEP US IN THE DARK AND I THINK WE ALL KNOW WHY. ANYWAYS, I HOPE YOU WILL RESOLVE THIS ISSUE MOVING FORWARD AND I THANK YOU FOR YOUR CONSIDERATION. THANKS. >> Mayor Guajardo: THANK YOU, MR. HALE. ADAM RIOS. >> GOOD AFTERNOON, EVERYONE. ADAM RIOS, CORPUS CHRISTI. JUST HERE TO REMIND THE COMMUNITY ABOUT SOMETHING THAT I'M EXCITED ABOUT. THIS IS THE FIRST CITY-SPONSORED EVENT IN TERMS OF SKATEBOARDING AND SKATEBOARDING CULTURE. THIS SUNDAY ON MAY 4th, OUR CITY WILL BE HOSTED WEST GUTH SKATE GAMES FROM 1:00 TO 4:00. THE ADDRESS IS 9720 UPRIVER ROAD. REGISTRATION IS NOT REQUIRED. IT IS FREE TO THE PUBLIC. THERE IS NO ADMISSION FEE. THERE WILL BE BEST TRICK COMPETITIONS GOING ON THROUGHOUT THE AFTERNOON AND I WANT TO REMIND PEOPLE THAT THE BEAUTY OF THIS SPORT WHEN WE HAVE COMPETITIONS LIKE THIS IS IT DOESN'T MATTER IF YOU'RE A BOY OR GIRL, WHATEVER THE CASE MAY BE, WHOEVER DOES THE BEST TRICK DOES THE BEST TRICK. IT'S NOT BROKEN UP INTO DIFFERENCES. THERE'S GOING TO BE PRIZES FOR EACH GROUP AND FREE SNO-CONES PROVIDED. AND I ALSO WANTED TO BRING ATTENTION TO JUNE 17th WILL BE A BIG DAY. I FILLED OUT THE EVENT REQUEST FORM AND I GOT A RESPONSE. I'LL BE HELPING WITH A PROCLAMATION TO RECOGNIZE RAY HIGH SCHOOL. THE RAY TEXANS AND RECOGNIZING THEM AS BEING THE FIRST PUBLIC SCHOOL IN OUR CCISD TO ESTABLISH A SKATEBOARDING CLUB. UNDER THAT CLUB, THEY WILL HAVE TO FOLLOW ALL THE GUIDELINES ASSOCIATED WITH OTHER CAMPUS ORGANIZATIONS. THEY'RE GOING TO BE BUILDING A HALF PIPE ON CAMPUS FOR THE STUDENTS TO USE AND HOPEFULLY THIS WILL OPEN UP OPPORTUNITY FOR OTHER SCHOOLS TO START THEIR OWN SKATE CLUBS AND POSSIBLY START SOME UIL COMPETITION. I ALSO WANTED TO GIVE THANKS AND SAY THAT ALL THIS STARTED -- AND I'LL FINISH WITH SOMETHING ELSE. BUT ALL THIS STARTED ALMOST THREE YEARS AGO WHEN I CAME UP HERE AND SAID PLEASE DON'T TEAR DOWN COLE PARK. AND THE NEXT DAY I GOT A CALL FROM THE MAYOR'S OFFICE AND THAT WAS THE FIRST TIME I GOT TO SIT IN COUNCIL CHAMBERS AND WE STARTED MAKING PROGRESS ON NOT ONLY KEEPING COLE PARK OPEN BUT EXPANDING IT AND BUILDING SKATE PARKS ALL OVER THE COMMUNITY. AND IT ALL STARTED WITH ME COMING UP AND DOING COMMENTS. SINCE THAT TIME, I KNOW SOMETIMES MY COMMENTS PEOPLE MIGHT NOT AGREE WITH THEM OR THINK THAT'S ALL YOU DO IS TALK ABOUT THAT. BUT I WANTED TO READ SOMETHING THAT WAS POIGNANT TO ME AND WHY I COME UP HERE AS OFTEN AS I DO. THIS IS A QUOTE FROM SOMETHING. WHEN SOMEONE SAYS SOMETHING HONEST BUT CONTROVERSIAL, EVERYONE WAS BOOING THIS PERSON. EVERYONE. AND HIS RESPONSE WAS TO SAY YOUR BOOS MEAN NOTHING TO ME BECAUSE I HAVE SEEN WHAT YOU PEOPLE CHEER FOR. IF YOU'RE GOING TO DO SOMETHING DIFFERENT AND BEAUTIFUL, YOU WANT TO DO IT IN A VERY UNAFRAID WAY. THAT'S FROM RICK AND MORTY. WE CAN ALL LEARN SOMETHING FROM RICK AND MORTY. [LAUGHTER] >> Mayor Guajardo: THANK YOU, MR. RIOS. MR. JIM KLEIN? TYSON SALES. TYSON SALES? ISABEL ARAIZA. >> OKAY. ISABEL ARAIZA, CO-FOUNDER OF FOR THE GREATER GOOD, DISTRICT 2. I WANTED TO KIND OF WRAP UP SOME OF MY THOUGHTS FROM MY LAST PUBLIC COMMENT. WE HAD OUR MEETING WITH THE CRIME PREVENTION BOARD AND ALL OUR MONEY GOES TO POLICE OFFICERS. NOTHING GOES TOWARDS PREVENTION. YOU KNOW, AT THE LAST MEETING I WAS TRYING TO ASK QUESTIONS ABOUT HOW DO WE ASSESS THAT THE WAY WE'RE USING OUR MONEY IS EFFECTIVE AS BEST USE OF OUR DOLLARS, ESPECIALLY SINCE WE DON'T HAVE PREVENTION PROGRAMS. AN OUNCE OF PREVENTION IS WORTH A POUND OF -- WHAT IS IT CALLED? CURE. THANK YOU. AND SO I TRIED TO GO AND LOOK FOR DATA. IT'S GOOD TO HAVE A SOCIOLOGIST ON THE BOARD LIKE THAT. THERE IS FBI CRIME REPORT DATA AND THEY HAVE A TOOL THAT ALLOWS YOU TO LOOK AT NUMBERS. SO FROM 2019 TO 2025 I WAS ABLE TO LOOK AT RAW NUMBERS. THERE WAS A REPORT THAT LOOKS AT TRENDS FROM 2009 TO 2018. AND REALLY I'M SUPER CONCERNED THAT WE DON'T ACTUALLY HAVE A METRIC TO ASSESS THE EFFECTIVENESS OF THE WAY THAT WE'RE USING OUR DOLLARS. IN 2017 IT WAS REPORTED IN THE CALLER TIMES THAT WE WERE NO LONGER GOING TO BE FUNDING PREVENTION PROGRAMS. THERE WAS NO FUNDING FOR JUVENILE ASSESSMENT. THERE WAS NO FUNDING TO KEEP AN EYE ON PAWNSHOPS. THAT HELPED WITH DEALING WITH BURGLARY AND THEFT CASES. AND ALL THE MONEY WAS GOING TO GO TOWARDS THE 63 OR 68 POLICE OFFICERS. AND NOW WE'RE FUNDING 78. WE'RE ALSO FUNDING CHARGERS FOR PHONES AND AMMUNITION FOR TRAINING AND WORKOUT EQUIPMENT AND OFFICE EQUIPMENT FOR THE POLICE DEPARTMENT. THE NEW TRAINING CENTER. I'M NOT SAYING THAT WE DON'T NEED THAT BUT I DON'T KNOW THAT THAT'S THE BEST USE OF OUR DOLLARS WHEN THAT SEEMS LIKE GENERAL OPERATING THINGS, NOT CRIME CONTROL AND PREVENTION. AND SO I LOOKED UP THE CLEARANCE RATES AND, YOU KNOW, I TRY TO ASK ABOUT CLEARANCE RATES AND THEY WERE WISHY WASHY ABOUT IT AND I LOOKED AT HOW IT GETS REPORTED IN THE DATABASE. OUR CLEARANCE RATES ARE REALLY LOW FOR BURGLARY AND LARCENY. OUR CRIME RATES ARE HIGHER THAN THE NATIONAL AND STATE AVERAGES. WE'RE DEVOTING ALL THIS MONEY THERE AND OUR RESOURCES FOR THINGS THAT COULD KEEP PEOPLE FROM GETTING INTO TROUBLE OR THAT COULD OFFER COUNSELING OR SUPPORT SERVICES, WHICH THE CRIME CONTROL PREVENTION DISTRICT COMMITTEE CAN ALLOCATE RESOURCES FOR. WE'RE NOT DOING THOSE THINGS AND I REALLY DO THINK THAT WE NEED TO DO THAT AND I THINK IF MORE PEOPLE KNEW THEY WOULD ALSO SUPPORT THOSE IDEAS. THANK YOU. >> Mayor Guajardo: THANK YOU, MS. ARAIZA. PARKER WILSON. >> [OFF MIC] >> Mayor Guajardo: THANK YOU. AND THEN I THINK DO WE HAVE MAGGIE PEACOCK ON WEBEX? >> City Secretary: YES, MA'AM. SHE'S ONLINE. >> YEAH. CAN YOU HEAR ME? >> City Secretary: YES, WE CAN. >> MAGGIE PEACOCK, 447 [INDISCERNIBLE]. I'M SPEAKING QUICKLY ABOUT THE RECENT TRIP TO CARLSBAD, CALIFORNIA BY A FEW COUNCIL MEMBERS, THE CITY MANAGER, AND DREW MOLLY. I READ THE ARTICLE HIGHLIGHTING THE TRIP TO THE CARLSBAD DESALINATION PLANT AND I JUST KIND OF LAUGHED AT A FEW ASPECTS OF IT AND I THOUGHT IT WAS SILLY. I LAUGHED BECAUSE THE FOLKS WHO VISITED AND WERE TALKING ABOUT HOW CLEAN THE DISCHARGE AND OUTFALL IS, ET CETERA, BUT THE OUTFALL GOES STRAIGHT INTO THE PACIFIC OCEAN AND NOT IN A CLOSED BAY SYSTEM LIKE CORPUS CHRISTI BAY. SO THIS IS A SIGNIFICANT DIFFERENCE THAT I THINK NEEDS TO BE SHARED WITH COMMUNITY MEMBERS BETWEEN THAT PLANT AND THE PROPOSED HILLCREST PLANT. IN AN ARTICLE WHERE THE MAYOR AND MARK SCOTT AND OTHERS WERE LIKE, YEAH, THIS IS FINE. IT SEEMS VERY MISLEADING. SO, YEAH, THE CARLSBAD DESALINATION PLANT IS NOT IN A CLOSED-BAY SYSTEM BUT THE HILLCREST IS. YEAH. THAT'S IT. >> City Secretary: THANK YOU, MS. PEACOCK. MAYOR, THAT CONCLUDES THE PUBLIC COMMENT PERIOD. >> Mayor Guajardo: GREAT. THANK YOU. THANK YOU, REBECCA. >> Zanoni: EXCUSE ME, MAYOR. >> Mayor Guajardo: I'M GOING TO GO TO THE CONSENT AGENDA, WHICH IS ITEMS 4 THROUGH 25. AND THEN WE'LL COME BACK FOR THE BRIEFING. WOULD ANY COUNCIL MEMBER LIKE TO PULL AN ITEM 4 THROUGH 25? >> Zanoni: I HAD A COMMENT AFTER THIS. NO PROBLEM. AFTER YOU DO THIS. >> Mayor Guajardo: COUNCILWOMAN PAXSON. >> Paxson: 17 AND 25. >> Mayor Guajardo: I THOUGHT YOU SAID 17 THROUGH 25. WOW. THAT'S A NEW WAY TO SAY IT. 17 AND 25. ANYONE ELSE? COUNCILMAN HERNANDEZ? NO. 11 AND NO. 19. WITH THAT, I WILL ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA WITH THE EXCEPTION OF ITEMS PULLED: 11, 17, 19, AND 25. WE HAVE A MOTION AND A SECOND. ARE YOU PUTTING THIS ON? PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. ITEM NO. 11 -- >> Zanoni: MAYOR. ONE OF THE PUBLIC COMMENTERS, PARKER WILSON WAS GOING TO SPEAK ON 26 BUT I'M GOING TO REQUEST THAT THAT ITEM BE PULLED FROM THE AGENDA FOR TODAY'S MEETING. WE GOT SOME LATE INFORMATION LAST NIGHT FROM OUR LEGAL TEAM, BOTH HERE AND IN AUSTIN. WE NEED SOME MORE TIME TO ANALYZE WHAT THEY TOLD US LAST NIGHT AND MAYBE PUT THIS BACK ON A FUTURE AGENDA. >> Mayor Guajardo: THANK YOU, MR. ZANONI. ITEM NO. 11 WAS PULLED BY COUNCILMAN HERNANDEZ AND THAT IS AN ORDINANCE APPROVING THE ADDITION OF 20 FULL-TIME POSITIONS AND EQUIPMENT FOR ENGINEERING SERVICES DEPARTMENT. MR. HERNANDEZ. >> Hernandez: I VOTED NO ON THIS LAST TIME SO I VOTED IT TO VOTE NO ON THIS AGAIN. THIS IS FOR THE ADDITIONAL 20 FTEs FOR THE ADDITIONAL ENGINEERING SERVICES. >> Mayor Guajardo: I'LL ENTERTAIN A MOTION. >> Barrera: SO MOVE. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION FAILS. >> Hernandez: WITH THAT, I RECOMMEND, PETER, SINCE THIS FAILED, TO BRING US BACK AN RFP AND CONTRACT FOR CONTRACTED SERVICES FOR PROJECT MANAGEMENT GOING FORWARD. >> Zanoni: IS THAT THE WILL OF THE COUNCIL? >> Hernandez: WELL, THE MOTION FAILED FOR THE ADDITIONAL PEOPLE. I'M RECOMMENDING -- I'M NOT GIVING A MOTION. >> Mayor Guajardo: WHAT WAS THE RECOMMENDATION? >> Hernandez: THAT HE BRINGS BACK AN RFP FOR CONTRACTED SERVICES FOR PROJECT MANAGEMENT. NOW -- >> Mayor Guajardo: WELL, I THINK -- REBECCA, WOULD THAT BE A WHOLE NEW ITEM WE WOULD HAVE TO CONSIDER? >> City Secretary: YES, MA'AM. >> Hernandez: THAT'S CORRECT. I'M NOT MAKING A MOTION FOR IT BECAUSE IT'S NOT ON THE AGENDA TO DISCUSS OR VOTE ON. IF THEY WOULD LIKE TO CONTINUE WITH AGCM, THEY SHOULD DO AN RFP PROJECT SO IT BIDS OUT THE OPPORTUNITY FOR IT. >> Mayor Guajardo: WHY DON'T WE TALK ABOUT THAT OFFLINE BECAUSE I THINK THERE WOULD BE DIFFERENT WAYS IN WHICH IT COULD BE BROUGHT BACK AND WE DON'T TYPICALLY DO THAT ON THE DAIS. DEFINITELY UNDER CONSIDERATION. THANK YOU. ITEM NO. 17, I THINK COUNCILMAN HERNANDEZ, WAS THAT YOU AS WELL? >> Hernandez: NO. >> Mayor Guajardo: WHO PULLED 17? COUNCILWOMAN. THIS IS A MOTION AWARDING A CONSTRUCTION CONTRACT TO RUTS CONSTRUCTION IN THE AMOUNT OF $2.5 MILLION. THIS IS FOR AN IDIQ CONTRACT. COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. I JUST HAD A COUPLE OF QUESTIONS. IT'S NOT ON THE ITEM. I NOTICED IN THE DOCUMENTS IN THE PACKET THAT THE ACTUAL PRICE THAT WE RECEIVED ON THE BID CAME IN A LOT HIGHER THAN THE PROJECTED ENGINEER COSTS. MY FIRST QUESTION WAS IF YOU COULD LEND SOME LIGHT TO THAT DISCREPANCY. WE DID ONLY RECEIVE ONE BID, MAYBE SOME LIGHT ON THAT. AND THEN THOSE ARE THE TWO. >> SURE. NICK WINKLEMANN, DIRECTOR OF WATER SYSTEMS. WE DID ONLY RECEIVE ONE BID. THIS WAS ACTUALLY THE THIRD TIME THE PROJECT WAS BID. PREVIOUSLY THE FIRST TWO BIDS WE RECEIVED ZERO BIDS. AND THE OTHER QUESTION YOU HAD WAS ABOUT -- OH, THE AMOUNT. SO IT'S AN IDIQ CONTRACT, INDEFINITE DELIVERY, INDEFINITE QUANTITY. WHAT THAT BASICALLY MEANS IS WE WON'T BE ABLE TO GET AS MUCH WORK DONE AS WE ORIGINALLY PLANNED. HOWEVER, IT IS A MULTI-YEAR PROJECT. WE HAVE FUNDS BUDGETED FOR NEXT FISCAL YEAR AS WELL. >> Paxson: OKAY. I JUST WANT TO CLARIFY, THANK YOU. >> IF I COULD ADD SOME COLOR ON TO THE PREVIOUS BIDS. SO THIS PROJECT IS HARD, FROM A CONTRACTOR STANDPOINT, BECAUSE THE PROJECTS ARE SPREAD THROUGHOUT THE CITY AND ALONG THE MARY RHODES PIPELINE. SO IT'S HARD FOR A CONTRACTOR TO DEVOTE THE RESOURCES FOR EACH OF THOSE INDIVIDUAL TASK ORDERS. >> Paxson: I NOTICED THAT KIND OF IN CONJUNCTION WITH THE ENGINEERS' PROJECTED COST, THERE'S A LIST OF SIMILAR PROJECTS BEING COMPLETED IN OTHER CITIES. SO I GUESS LOOKING AT THAT WHOLE LANDSCAPE, IT WAS JUST CURIOUS TO ME THAT WE ONLY RECEIVED THE ONE BID AND IT WAS SO MUCH HIGHER. I UNDERSTAND IT'S WORK THAT TRULY NEEDS COMPLETED. I WAS JUST VERY CURIOUS BY THAT PRICE JUMP. MORE THAN DOUBLE. >> SURE. WELL, AND THE CITY HAS NEVER DONE A CATHODIC PROTECTION IDIQ PROJECT BEFORE. THE ENGINEERS' ESTIMATES, IT WAS A LITTLE HARD TO DETERMINE BECAUSE WE NEVER GOT PRICING BECAUSE THE FIRST TWO BIDS WE DIDN'T HAVE ANY BIDDERS ON IT. >> Paxson: THAT MAKES SENSE. THANK YOU. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. COUNCILMAN HERNANDEZ. >> Hernandez: JUST OUT OF CURIOSITY, WHAT TYPE OF CATHODIC PROTECTION ARE YOU GOING TO BE DOING? IS THIS SACRIFICIAL ANODES? >> COUNCILMAN, YES. WE HAVE BOTH. THROUGHOUT THE CITY AND ALONG THE -- WELL, THE MARY RHODES PIPELINE IS PASSIVE SO SACRIFICIAL ANODES ARE INSTALLED. THROUGHOUT THE CITY, WE DO HAVE SOME CURRENT SYSTEMS THAT ARE INSTALLED BUT THEY'RE NOT ALL FUNCTIONING AT THIS TIME. WE KNOW THEY'RE NOT FUNCTIONING EITHER. THAT'S THE REASON FOR THE PROJECT. >> Hernandez: YOU'RE GOING TO BE UTILIZING BOTH. IS THERE A PREFERENCE ON HOW THIS IS GOING TO GO FORWARD? ARE YOU GOING TO JUST REPLACE LIKE FOR LIKE OR IS THIS GOING TO BE A CHANGE OVER TO IMPRESS THE CURRENT FROM THE SACRIFICIAL ANODES? >> IN SOME SITUATIONS, LIKE THE MARY RHODES PIPELINE, IMPRESSED CURRENT IS CHALLENGING BECAUSE OF THE LOCATION OF THE PIPELINE. AND INITIALLY THE APPROACH IS TO MAINTAIN AND INSTALL LIKE FOR LIKE. BUT YEAH. >> Hernandez: THANK YOU. >> Mayor Guajardo: THANK YOU, COUNCILMAN. COUNCILWOMAN VAUGHN. >> Vaughn: I'M NOT GOING TO SIT UP HERE AND ACT LIKE I KNOW WHAT HE JUST SAID. I BET MOST OF US DON'T KNOW WHAT -- SACRIFICIAL WHAT? >> [OFF MIC] >> Vaughn: WOULD YOU JUST EXPLAIN IT? >> SURE. ABSOLUTELY. OVER TIME, YOU KNOW, WE HAVE A NUMBER OF DIFFERENT TYPES OF PIPE WITHIN OUR SYSTEM AND OVER TIME PIPELINES CORRODE AND THEY CAN CORRODE FOR A NUMBER OF DIFFERENT REASONS. SOMETIMES IT'S THE SOIL CONDITIONS THAT EXIST. SOMETIMES IT'S STRAIGHT CURRENT THAT CAN ALSO ENCOURAGE THE DEGRADATION OF A PIPELINE. AND WHAT CATHODIC PROTECTION DOES IS IT PROTECTS THE PIPELINE, IT PROTECTS THE ASSET. WHAT THE COUNCILMAN SAID WAS SACRIFICIAL ANODES, THOSE WILL DETERIORATE FIRST BEFORE THE PIPE. >> Vaughn: THANK YOU. AND YOU ARE ALL WELCOME. [LAUGHTER] >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. I WILL GO AHEAD AND ENTERTAIN A MOTION FOR ITEM 17. >> MOTION TO APPROVE. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. THE NEXT ITEM PULLED IS ITEM NO. 19. THIS IS A MOTION AWARDING A CONSTRUCTION CONTRACT TO BARCOM CONSTRUCTION FOR THE CONSTRUCTION OF A NEW WASTEWATER MAINTENANCE BUILDING. WHO PULLED THIS ONE? WHO DID? COUNCILMAN HERNANDEZ. >> Hernandez: OKAY. WHEN THIS CAME TO COUNCIL FOR THE DESIGN, I VOTED AGAINST IT. I THINK THIS IS A WANT MORE THAN A NEED. YOU KNOW, WE HAVE A LOT OF ISSUES HAPPENING WITH WASTEWATER WITH THE EPA CONSENT DECREE. WE HAVE ANOTHER ITEM COMING UP WITH THE GREENWOOD PLANT THAT'S $102 MILLION. I THINK WE SHOULD FOCUS ON THAT. YOU KNOW, I KNOW THIS WOULD BE NICE TO HAVE BUT ULTIMATELY THE RATEPAYERS HAVE TO PAY FOR THIS AND SO I'M GOING TO BE VOTING NO ON THIS ONE. THANK YOU. >> Mayor Guajardo: THANK YOU, COUNCILMAN. COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. FOR ME, I KNOW THESE FUNDS COME OUT OF WASTEWATER AND WATER AND CIP, AND I'M SURE IT WOULD BE A HELPFUL FACILITY. I THINK THERE'S SOME HIGHER-LEVEL PRIORITIES. I THINK WE NEED TO GET EQUIPMENT THAT SURROUNDS OUR INFRASTRUCTURE. THAT'S SOMETHING THAT WE'VE NEEDED FOR A LONG TIME. PERHAPS LOOKING AT SOMETHING THAT'S NOT AS ROBUST, IF WE HAVE CRITICAL PIECES OF EQUIPMENT TO PROTECT. BUT I JUST WANTED THAT ON RECORD. I'M SURE THAT THIS WOULD BE A LOT OF HELP. HOWEVER, LOOKING AT THE WHOLE CLIMATE: BUDGETARY, WATER, INFRASTRUCTURE, THAT'S WHERE FOR ME I WOULD NOT BE SUPPORTING THIS ITEM. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. COUNCILWOMAN VAUGHN. >> Vaughn: I'VE GOT SEVERAL QUESTIONS. I WANT TO GIVE YOU A CHANCE TO EXPLAIN WHY WE NEED IT, HOW MANY PEOPLE ARE WORKING OUT OF THERE, WHY IS IT SO BIG, WHAT CIRCUMSTANCES ARE THEY WORKING UNDER NOW, AND IS THIS GOING TO MAKE THE RATES GO UP? >> I'M THE DIRECTOR OF STRUCTURE FOR CCW. I DO HAVE A PRESENTATION AND I CAN ANSWER SEVERAL OF THE QUESTIONS AND CONCERNS OF COUNCILWOMAN PAXSON AND COUNCILMAN HERNANDEZ HAVE. THE NEED FOR THIS FACILITY REALLY IS FROM THE FOCUS THAT CCW HAS PUT ON PREVENTIVE MAINTENANCE. OUR PREVENTIVE MAINTENANCE PROGRAM WAS BASICALLY NON-EXISTENT HISTORICALLY, WHICH IS WHY WE ENDED UP IN THE CONSENT DECREE. WE HAVE RECAPITALIZED MUCH OF THE SYSTEM IN THE LAST SIX YEARS, TO THE TUNE OF OVER $250 MILLION, WHICH INCLUDES PUMPS BLOWERS MOTORS ELECTRICAL COMPONENTS, ITEMS LIKE THAT. SO WHAT INEVITABLY WILL HAPPEN IF WE DON'T HAVE THE PROPER PREVENTIVE MAINTENANCE ON THESE ITEMS, WE'LL END RIGHT BACK UP IN THE SAME SITUATION AGAIN. THAT'S WHY THIS IS SO CRITICAL TO PUT THIS INTO PLACE SO THAT WE CAN CONTINUE THE PREVENTIVE MAINTENANCE AND ENSURE THAT WE DON'T HAVE TO COME BACK IN TEN YEARS AND REPLACE EQUIPMENT THAT PREMATURELY FAILED. SO GOING THROUGH THE PRESENTATION, THE LOCATION OF THE FACILITY IS AT THE GREENWOOD WASTEWATER TREATMENT >> IT'S CENTRALIZED WITHIN THE CITY. CURRENTLY, WE HAVE PUMPS, MOTORS, BLOWERS, THAT ARE LOCATED BASICALLY ANYWHERE WE CAN FIND SPACE TO STORE THEM. IT'S VERY INEFFICIENT, WE EVEN HAVE BLOWERS THAT ARE -- WHICH BLOWERS FOR WASTEWATER TREATMENT IS WHAT PROVIDES THE OXYGEN FOR THE BACTERIA THAT ACTUALLY DO THE PROCESS. THERE ARE BLOWERS THAT ARE STORED OUTSIDE UNDER TARPS, WHICH IS DEFINITELY NOT THE WAY THAT THEY SHOULD BE STORED. SO THIS WILL CENTRALIZE THE LOCATION OF ALL THIS EQUIPMENT INTO ONE AREA. THIS IS A RENDERING OF THE FINAL FACILITY. WE KEPT COSTS DOWN. IT'S NOTHING EXTRAVAGANT. IT IS ESSENTIALLY JUST PROVIDING US A SPACE TO BE ABLE TO MONITOR OUR WORK, SELF-PERFORM A LOT OF THE ELECTRICAL WORK THAT WE HAVEN'T DONE IN THE PAST WILL ALSO BE ABLE TO BE DONE IN HERE, AND, YOU KNOW, ULTIMATELY GOING FORWARD, SAVE US MONEY THROUGH EFFICIENCIES. SO THIS IS SOME OF THE PICTURES. RIGHT NOW YOU CAN SEE HOW WE HAVE -- THIS IS A PICTURE OF THE PUMP AND GENERATORS THAT ARE SITTING OUTSIDE OUTDOORS IN OR CLIMATE. IT'S NOT A REAL GOOD PLACE FOR THESE TO SIT. THESE ARE NOT CHEAP PIECES OF EQUIPMENT EITHER. THIS WOULD PROVIDE US, AGAIN, AN AREA OF STORAGE FOR THOSE TYPE OF ITEMS. WE ALSO HAVE LESS EXPENSIVE, BUT STILL VERY NEEDED ITEMS, SUCH AS PIPE, WIRE REELS, THINGS LIKE THAT THAT NEED A PLACE TO BE STORED. RIGHT NOW, THERE'S NOWHERE TO PUT THOSE. OUR TRUCKS, WE HAVE A SINGLE BAY, BUT WE HAVE OVER 400 PUMPS IN THE SYSTEM. WE ALSO HAVE 40 BLOWERS AT THE VARIOUS PLANTS AND THOUSANDS OF ELECTRICAL COMPONENTS THROUGHOUT. ONE BAY, ONE TRUCK IS NOT ENOUGH. SO THE NEW FACILITY WILL HAVE TWO BAYS THAT'S ABLE TO DELIVER THE EQUIPMENT AND BE ABLE TO BE MORE EFFICIENT WITH SWITCHING OUT PUMPS, ROTATING PUMPS AND BLOWERS, THINGS OF THAT NATURE. THIS IS WHERE WE SELF-PERFORM A LOT OF THE WORK, AND THIS IS WHERE THIS FACILITY IS ALSO GOING TO BE BENEFICIAL TO THE CITY IN SAVING MONEY. WE HAVE BEEN ABLE TO SAVE THROUGH SOME OF OUR OTHER WASTEWATER PROGRAMS AND SELF-PERFORMING WORK ALMOST $30 MILLION SINCE WE STARTED. THIS IS ATTRIBUTED TO YOU THE COUNCIL FOR VOTING THOSE DECISION PACKAGES IN, AND TO THE CITY MANAGER FOR ALLOWING US TO BRING THOSE FORWARD. OUR WASTEWATER TELEVISING IS THE MOST SUCCESSFUL AS PART OF THE CONSENT DECREE. WE SAVE COMPARED TO OUR CONTRACTOR COST $18 MILLION. SO BY BEING ABLE TO SELF-PERFORM THIS WORK, WE ARE REDUCING OUR -- OUR CUSTOMER'S WASTEWATER BILLS. IT'S NOT REALLY SEEN, BUT IT'S HAPPENING. THIS IS THE SAME CONCEPT. WE WANT TO BE ABLE TO GO IN, DO OUR OWN WELDING, FABRICATION PIPEFITTING MECHANICAL WORK, THAT WE WOULD NORMALLY SEND OUT TO A CONTRACTOR TO ACCOMPLISH. GETTING INTO THE MANAGEMENT SIDE, WE DO, WITH ANY GOOD PREVENTATIVE MAINTENANCE AND ASSET MANAGEMENT PROGRAM, THERE IS A LOT OF RECORDKEEPING, AND WE'RE NO DIFFERENT. WE UTILIZE MAXIMO TO KEEP ALL OF OUR RECORDS, AND WE HAVE TO HAVE THE SUFFICIENT WORK SPACES FOR OUR CREWS TO COME IN AND ESSENTIALLY INPUT THE DATA THAT GOES INTO THOSE WORK ORDERS THAT WE CAN TRACK AND DO DIAGNOSTICS ON IN THE FUTURE. THIS IS ONE OF THE WORK SPACES YOU CAN SEE RIGHT NOW. IT'S ACTUALLY GOT A SCATA SYSTEM SITTING IN THE MIDDLE OF THE ROOM, IN THE FEW FACILITY, IT WILL BE REPLACED AND EVEN HAVE A BACKUP SYSTEM LIKE OUR WATER TREATMENT PLANT DOES. THIS IS THE FACILITY WHERE WE DO PLC WORK, PANELS AND BUILD OTHER ELECTRICAL COMPONENTS. YOU CAN TELL THIS IS ACTUALLY A BREAKER ROOM, BUT WE HAVE TO DO THAT IN CLIMATE-CONTROLLED AREAS, AND THIS IS THE ONLY SPACE THAT WAS AVAILABLE TO DO THIS KIND OF WORK. BREAK ROOMS, THIS IS A MAKESHIFT BREAK ROOM. IT'S -- AS YOU CAN SEE THERE ON THE SIDE, IT'S GOT A DESK IN IT AS WELL. WE'RE SO SHORT ON SPACE, THAT WE'RE HAVING TO PUT DESKS IN THE BREAK ROOMS SO OUR CREWS ARE ABLE TO GO IN THERE AND, AGAIN, DO THE PROPER PAPERWORK FOR THE ASSET MANAGEMENT THAT WE REQUIRE. ANOTHER PICTURE, JUST SHOWING THE BREAK ROOM AND THE EMPLOYEES. THIS IS ONE THAT'S NEAR AND DEAR TO MY HEART, BECAUSE WHAT THESE GENTLEMAN DO, AND THIS IS REALLY THE LAST SLIDE, AND I LEFT IT LAST FOR A SPECIFIC REASON, IS OUR SAFETY MEETINGS AND OUR TRAINING. THESE EMPLOYEES IN PARTICULAR WORK IN A VERY -- EXTREMELY HAZARDOUS ENVIRONMENT. THEY DEAL WITH ELECTRICITY UP TO 480 VOLTS, DANGEROUS GASES, ALL SORTS OF HAZARDS IN THEIR JOB. SO WITH THAT, WE HAVE TO DO CONTINUOUS TRAINING. AS YOU CAN SEE, THERE IS NO TRAINING FACILITY AT THIS SITE, AT THIS LOCATION WHERE THEY CAN HOLD TAILGATE MEETINGS OF ANY SORT, OR EVEN LARGE-SCALE SAFETY TRAININGS. IT'S SO BAD THAT THEY ACTUALLY HAVE TO LINE UP INTO THE HALLWAYS WHEN WE HAVE THESE MEETINGS. SO, AGAIN, THIS FACILITY IS GOING TO HELP PROTECT OUR EMPLOYEES AND PROVIDE THEM WITH THE PROPER INSTRUCTION AND TRAINING THEY NEED TO DO THEIR JOB. AND WITH THAT, THAT'S -- HOPEFULLY I ANSWERED... >> Vaughn: YOU SAID YOU'RE STORING EQUIPMENT OUTSIDE. >> YES, MA'AM. >> Vaughn: AND I UNDERSTAND THAT, BECAUSE WE OWNED A COMPANY, AND THESE BIG UNITS ARE EXPENSIVE, AND THEY WILL BE DESTROYED, AND WE NEED TO THINK ABOUT THAT. IT'S GOING TO COST US IN THE LONG RUN, BECAUSE I'M NOT A BIG PERSON ON VOTING FOR THINGS LIKE THIS, BECAUSE I GET WHAT YOU SAY WHEN IT'S A WANT AND A NEED, BUT IF OUR EQUIPMENT -- IS IT SPREAD ALL OUT THROUGH THE CITY, OR IS IT IN ONE LOCATION, THE EQUIPMENT YOU'RE TALKING ABOUT? >> IT'S SPREAD THROUGHOUT THE CITY. >> Vaughn: THAT'S BAD MANAGEMENT. THAT'S JUST BAD MANAGEMENT. I'M NOT SAYING IT'S YOUR FAULT, I'M JUST SAYING IT'S NOT GOOD. IT SAID 30 EMPLOYEES, BUT DO YOU HAVE MORE THAN THAT WORKING OUT OF THERE? >> WE DO. WE ACTUALLY HAVE 50 EMPLOYEES THAT WORK OUT OF THAT FACILITY. WE DID A SHIFT WHERE WE TOOK MAINTENANCE PERSONNEL FROM THE WASTEWATER TREATMENT FACILITIES THAT WERE DOING OTHER MAINTENANCE ACTIVITIES AND COMBINED THEM WITH THESE FOR EFFICIENCY REASONS. >> Vaughn: OKAY. I THINK THAT'S IT. THANK YOU. >> YES, MA'AM. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. I GUESS I JUST WANT TO REEMPHASIZE, THIS IS ABOUT PREVENTATIVE MAINTENANCE. >> YES, MA'AM. >> Mayor Guajardo: AND AN INVESTMENT. I BELIEVE IT'S AN INVESTMENT IN NOT ONLY THE FUTURE OF THE CITY BECAUSE OF THE TYPE OF WORK THEY DO, BUT ALSO IN OUR WORKFORCE. IT'S VERY CLEAR. SO, AGAIN, A LOT OF THINGS THAT WE DON'T SEE, YOU MENTIONED PIPEFITTING, MECHANICAL WORK, TELEVISING. NO ONE SEES ANY OF THAT, YOU KNOW, BUT ALL OF THAT IS SO CRITICAL IN KEEPING OUR CITY AND MAINTAINING WHAT WE HAVE. I THINK THAT'S THE KEY HERE. THIS DID NOT JUST COME UP THIS YEAR. TELL US A LITTLE BIT ABOUT HOW LONG THIS HAS BEEN IN THE PLAN AND HOW THAT WORKS THROUGHOUT -- >> YES, MA'AM. SO THIS HAS BEEN IN THE PLANS, IN OUR CIP FOR ACTUALLY A LITTLE OVER THREE YEARS. IT'S COME UP THROUGH THE CIP. THE MAJORITY OF THIS BUDGET HAS ALREADY BEEN CAPTURED IN THE CURRENT RATE THAT WE'RE PAYING. ONLY TWO AND A HALF MILLION DOLLARS OF THE EIGHT AND A HALF MILLION THAT THIS IS GOING TO COST WILL BE ADDED TO THE NEW RATE. SO IT'S GOING TO HAVE VERY MINIMAL IMPACT GOING FORWARD. >> Mayor Guajardo: WHAT IS THE IMPACT OF THAT TWO AND A HALF MILLION? >> IT'S ABOUT THREE CENTS PER MONTH. >> Zanoni: YEAR. >> SORRY, PER YEAR. >> Zanoni: THREE CENTS A YEAR. >> Mayor Guajardo: SO OUT OF THIS 8.4 MILLION, SIX HAS BEEN BUDGETED? >> YES. >> Mayor Guajardo: -- IN A CIP BUDGET FOR THE LAST THREE YEARS? >> YES. >> Mayor Guajardo: TWO OR SO HAS NOT, AND THE IMPACT TO THE RATE PAYOR IS THREE CENTS PER YEAR? >> YES, IT'S MINIMAL. >> Zanoni: YEAH, 3-CENTS A YEAR TO THE AVERAGE RESIDENTIAL CUSTOMER. OKAY. >> Mayor Guajardo: OKAY. THANK YOU. COUNCILMAN CANTU? >> Cantu: THANK YOU, MAYOR, WHAT'S THE TOTAL SQUARE FOOTAGE 16,218? >> YES, SIR. >> Cantu: HOW MANY EMPLOYEES ARE IN THE BUILDING -- THAT WORK IN THE BUILDING, NOT -- >> TOTAL EMPLOYEES THAT WORK OUT OF THIS BUILDING WILL BE 51. >> Cantu: 51. THEY STAY THERE -- >> NO, THEY DON'T STAY THERE ALL DAY. THESE ARE EMPLOYEES THAT GO OUT, THEY'LL GO AND GET PUMPS, THEY'LL PULL PUMPS. WE ROTATE PUMPS WHEN WE HAVE SOME THAT BREAK DOWN, SO THEY'LL GO OUT TO A FACILITY, INSPECT IT. IF THEY FIND AN ISSUE, THEY'LL BRING THE PUMPS BACK, ROTATE THEM OUT WITH ANOTHER ONE. AND SOMEONE THERE WILL BE THERE TO FIX AND WORK ON -- >> Cantu: HOW MANY PEOPLE ARE IN THE BUILDING THROUGHOUT THE DAY, THE WHOLE EIGHT-HOUR SHIFT OR HOWEVER MANY HOURS. >> OH, IT VARIES D DAY TO DAY. YOU COULD HAVE 20, UP TO 25. THE CURRENT SPACE WE HAVE IS ABOUT 12,000 SQUARE FEET. >> Cantu: AND WHERE IS THIS MONEY COMING FROM AGAIN? >> REVENUE BONDS. >> Cantu: REVENUE BONDS. >> Zanoni: YEAH, AND FROM THE WASTEWATER RATE. THIS IS NOT THE GENERAL FUND, SO THE WATER AND RACE WATER RATES ARE TWO DIFFERENT FUNDS. THIS IS COMING FROM THE WASTEWATER OPERATIONS, FROM THE WASTEWATER BILLS. >> Cantu: SO IF THIS GETS PASSED TODAY, HOW FAST WILL IT TAKE TO BUILD THIS BUILDING? >> WE'RE PROJECTING A LITTLE OVER A YEAR. >> Cantu: OKAY. DO YOU THINK IT'S THE RIGHT TIME TO BUILD THIS BUILDING WITH EVERYTHING GOING ON WITH OUR FINANCES RIGHT NOW? IN ALL HONESTY, LOOKING FOR WATER, I MEAN, THE WHOLE 9 YARDS. >> I WOULDN'T HAVE BROUGHT THIS FORWARD IF I DIDN'T THINK SO. >> Cantu: OKAY. >> I THINK MAINTENANCE ACTIVITIES, LIKE I SAID, HAVE HISTORICALLY BEEN DEFERRED. ONCE YOU START DEFERRING THESE, IT SEEMS TO BE JUST A SNOWBALL EFFECT. >> Cantu: YEAH. >> AND IT DOESN'T OCCUR. IT DOESN'T -- EVERY YEAR, IT GETS PUSHED A LITTLE FURTHER UNTIL THE MAINTENANCE DOESN'T HAPPEN, AND YOU END UP LIKE WE DID IN A CONSENT DECREE, WHERE WE'RE HAVING TO SPEND HUNDREDS OF MILLIONS OF DOLLARS TO CORRECT SOMETHING THAT COULD HAVE BEEN DONE MUCH CHEAPER. >> Cantu: YEAH. AND I UNDERSTAND PROTECTING YOUR EQUIPMENT IN THE INVESTMENT, THE DEAL IS THAT CORPUS CHRISTI -- WE HAVE A LOT OF EMPTY BUILDINGS FOR LEASE RIGHT NOW, 10, 20,000 SQUARE FOOT BUILDINGS. AND I KNOW FOR A FACT THAT THERE'S PROBABLY A FEW 20,000 SQUARE FOOT BUILDINGS THAT THESE LANDLORDS WOULD PROBABLY DO IT CHEAP TO GET IT LEASED OUT. I DON'T FEEL LIKE IT'S THE RIGHT TIME TO SPEND THIS MONEY, MY PERSONAL OPINION. BECAUSE THE PUBLIC DOESN'T UNDERSTAND WHERE THIS MONEY'S COMING FROM, WHATEVER THE CASE, SO THEY'RE GOING TO SEE THAT WE'RE SPENDING ALMOST $9 MILLION ON A BUILDING, YOU KNOW, AND WE HAVE A LOT OF OTHER ISSUES RIGHT NOW, YOU KNOW? WE'RE IN THE BUSINESS OF LEASING -- I MEAN, WE LEASE A LOT OF PROPERTIES. I MEAN, I KNOW WE LEASE A LOT OF OFFICE SPACES. WHAT WAS THE DIFFERENCE FROM BUILDING THIS AND WHY DIDN'T WE LOOK INTO LEASING SOMETHING FOR A COUPLE YEARS OR SOMETHING? >> WELL, FOR ONE, THERE'S A LOT OF SPECIALIZED WORK THAT IS TO BE DONE, ESPECIALLY IN THE FABRICATION AREA. >> Cantu: UH-HUH. >> AND WITH THE ELECTRONICS, BEING ABLE TO BUILD IT FROM THE GROUND UP WITH OUR SPECIFICATIONS ALLOWS US TO BE ABLE TO OUTFIT THAT AREA AND THAT BUILDING WITH THE TOOLS AND EQUIPMENT WE NEED. ONE GOOD EXAMPLE IS YOU HAVE TO HAVE A CRANE TO BE ABLE TO MOVE SOME OF THESE PUMPS. SOME OF THESE PUMPS THAT WE HAVE ARE ALMOST THE SIZE OF THIS ROOM, SO YOU HAVE TO HAVE THE EQUIPMENT AVAILABLE TO MOVE THINGS. >> Cantu: HOW ARE WE DOING IT RIGHT NOW? >> WE HAVE A CRANE. >> Cantu: YOU HAVE A CRANE? >> YES. >> Cantu: AND WHAT'S HAPPENING TO THIS BUILD FIELD GOAL YOU GET THIS APPROVED TODAY, WHAT WILL HAPPEN TO THE OLD BUILDING? >> THE OLD BUILDING WILL GO BACK TO BEING JUST A STORAGE AREA, IF YOU SEE REALLY THE OLD BUILDING IS IN THE PRESENTATION -- I CAN GO BACK. IT'S A VERY SMALL AREA. >> Cantu: I'VE SEEN THE PICTURES OF THIS BUILDING. >> YEAH. SO THIS AREA RIGHT HERE WOULD GO BACK TO HOUSING EQUIPMENT. RIGHT NOW, IF YOU DRIVE OUT TO GREENWOOD PLANT, WE ARE -- OUR BOBCAT AND LIFTS ARE STORED OUTSIDE. THIS FACILITY WOULD ACTUALLY THEN ALLOW THOSE UNITS THAT ARE FOR GREENWOOD TO BE STORED BACK INSIDE THIS FACILITY. >> Cantu: I UNDERSTAND. DOES THE GENERAL PUBLIC GO INTO THIS BUILDING, BY CHANCE? >> NO. >> Cantu: I JUST DON'T UNDERSTAND WHY WE HAVE A REAL FANCY BUILDING FOR JUST A WAREHOUSE. I MEAN, WHY CAN'T WE JUST BUILD SOMETHING CHEAPER, SAME SIZE, BUT JUST STEEL BUILDING FOR STORAGE AND ALL THAT STUFF. >> EVEN THOUGH IT LOOKS THAT, IT'S JUST A STRAIGHT CONCRETE TILT WALL STRUCTURE. >> Cantu: IT LOOKS FANCY TO ME, I DON'T KNOW, IN MY OPINION. IT LOOKS REAL NICE. >> AND STEEL RIGHT NOW IS AS EXPENSIVE AS CONCRETE IS. SO THE COST SAVINGS -- YOU'RE NOT SEEING THAT THERE. ALSO WITH A STEEL BUILDING, YOU'RE THINKING ABOUT WINDSTORM RATINGS. THESE BUILDINGS ARE ALSO GOING TO HOUSE OUR EMPLOYEES DURING HURRICANE EVENTS, SO IT HAS TO BE DESIGNED TO WITHSTAND CATEGORY 3, 4 HURRICANES. >> Cantu: I'VE GOT NO OTHER QUESTIONS AT THE MOMENT. THANK YOU. >> Mayor Guajardo: WES, COULD YOU EXPLAIN, WERE THESE MONIES ABLE TO BE USED ELSEWHERE -- OR PETER? MEANING, CAN YOU -- I WANT TO EXPLAIN TO THE PUBLIC -- YOU OR YOU EXPLAIN TO THE PUBLIC. >> Zanoni: SO THESE -- >> Mayor Guajardo: HANG ON PETER, WE KEEP HEARING THE WORD CIP BUDGET. I WANT THIS TO BE VERY CLEAR. THERE IS A BUDGET, WHICH IS A GENERAL BUDGET, WHICH IS WHERE WE OPERATE OUT OF. WHAT WE ARE REFERRING TO IS THE CIP BUDGET, THE CAPITAL IMPROVEMENT BUDGET, WHICH CONSISTS OF ONLY MAJOR PROJECTS. AND THOSE ARE PROJECTS THAT COME THROUGH THIS DAIS EVERY SINGLE YEAR. THEY'RE HUGE, JUST LIKE WHAT YOU SEE HERE, AND LARGER, MUCH LARGER. SO COULD YOU EXPLAIN -- BECAUSE ONE OF MY QUESTIONS YESTERDAY WAS, COULD WE USE THESE -- THESE -- THIS FUNDING FOR OTHER THINGS THAT, AS THE COUNCILMAN MENTIONED, THERE ARE NEEDS AROUND THE CITY THAT WE NEED TO ADDRESS. CAN WE USE THIS $8.4 MILLION TOWARDS THAT, TOWARDS OTHER OPERATIONAL COSTS? >> Zanoni: YEAH, THE ANSWER WOULD BE NO, MAYOR. WE HAVE 29 DIFFERENT LINES OF BUSINESS IN THE CITY, AND NUMEROUS FUNDING SOURCES. AND SO MOMENTARILY YOU'LL HEAR ABOUT JUST ONE, THE GENERAL FUND. THAT IS A TOTALLY DIFFERENT OPERATING FUND. WE HAVE NUMEROUS FUNDS ACROSS THE ENTERPRISE OF THE BUSINESS. JUST TAKE AIRPORT AS AN EXAMPLE. THOSE REVENUES AND EXPENDITURES ONLY STAY IN THAT FUND BY FAA REGULATIONS. SO IN OUR WATER AND WASTEWATER BUSINESSES, THOSE FEES THAT GENERATE REVENUE TO PROVIDE OPERATING AND CAPITAL IMPROVEMENTS CAN ONLY BE USED FOR THOSE AREAS OF BUSINESS ONLY. SO YOU CAN'T USE -- IF THIS 8 MILLION WAS VOTED DOWN, YOU CANNOT USE THAT MONEY TO HIRE ADDITIONAL POLICE OFFICERS, YOU CAN'T USE THAT MONEY TO PAVE STREETS, YOU CAN'T USE THAT MONEY TO FIX THE AIRPORT, BECAUSE THE DEDICATED REVENUES ISSUED AND THIS GUIDELINE THROUGH THE PUC AND THE STATE, THAT THEY HAVE TO BE USED FOR WASTEWATER OPERATIONS. SO THAT'S ONE EXPLANATION. THE OTHER IS, THIS IS A CAPITAL IMPROVEMENT EXPENDITURE, SO IT'S NOT AN OPERATING EXPENDITURE, THAT WE'LL TALK TO YOU ABOUT MOMENTARILY. CAPITAL EXPENDITURES LIKE THIS ARE A VERY LONG LEAD, AND THAT'S WHY WE HAVE A 10-YEAR CAPITAL IMPROVEMENT PROGRAM THAT COUNCILMAN HERNANDEZ IS FOND OF. THIS HAS BEEN IN THE CAPITAL IMPROVEMENT PROGRAM FOR THREE YEARS, SO THAT MEANS TWO DIFFERENT COUNCILS HAVE APPROVED THIS PROJECT, THE PRIOR COUNCIL AND ONE PRIOR TO THAT, SINCE IT WAS THREE YEARS, SO THESE ARE LONG-LEAD PROJECTS. AND I THINK WES EXPLAINED IT WELL WHICH IS THAT THIS CITY, WHEN I CAME HERE SIX YEARS AGO, WAS ON THE BRINK OF COLLAPSE WHEN IT COMES TO INFRASTRUCTURE. THE CONSENT DECREE, IF PEOPLE DON'T KNOW WHAT THAT IS, THAT IS A LAWSUIT FROM THE FEDERAL GOVERNMENT TELLING THE CITY WE'RE GOING TO SUE YOU BECAUSE YOU'RE DISCHARGING WASTEWATER, SEWER, INTO OUR FEDERAL WATERS BECAUSE OF POOR MAINTENANCE. >> Mayor Guajardo: RIGHT. >> Zanoni: AND WES EXPLAINED IT. UNLESS WE HAVE A SPOT WHERE WE CAN STORE VERY EXPENSIVE TREATMENT. AND WHAT WES HASN'T TALKED ABOUT, THERE'S NO REASON WE CAN INVENTORY OR SECURE INVENTORY. WE'LL BE SAVING MONEY TO PAY FOR THIS BUILDING OVER A FEW DECADES. >> Mayor Guajardo: AND HOW DIFFICULT OR SIMPLE WOULD IT BE TO GO LEASE A BUILDING THAT WOULD PROVIDE -- THAT THIS IS NOT JUST A BUILDING, THIS IS VERY COMPLEX FOR WHAT WE'RE USING IT FOR. IS THAT EVEN SOMETHING THAT IS ABLE TO BE CONSIDERED? I MEAN, IN TERMS OF WHAT YOU NEED, THE CRANES AND THAT KIND OF THING? >> THIS BUILDING -- I THINK, AND I GUESS CAN YOU REPEAT EXACTLY -- >> Mayor Guajardo: I'M JUST SAYING, THE BUILDING IS BEING BUILT AND THE QUESTION WAS ASKED ABOUT LEASING A BUILTING SOMEWHERE. BUILDING SOMEWHERE. >> YOU CAN. IT WOULD HAVE TO BE OUTFITTED AND RETROFITTED AND YOU WOULD BE SPENDING MONEY ON THIS. IF WE HAD TO DO THIS, WE WOULD BE COMING BACK FOR THOSE MONIES AS WELL TO BE ABLE TO DESIGN THAT BUILDING TO FIT OUR NEEDS. >> Zanoni: CAN I ADD TO THAT, TOO, MAYOR, AND WE APPRECIATE COUNCILMAN CANTU'S IDEAS, HOWEVER THE CITY'S BEEN AROUND FOR OVER 100 YEARS AND WE WANT TO BE AROUND FOR LONGER, SO WE SHOULD NOT BE IN THE BUSINESS OF LEASING PROPERTY. IN THIS UPCOMING BUDGET IN THE GENERAL FUND, I'M GOING TO BE LOOKING AT ALL LEASES BECAUSE ON A LONG-TERM BASIS FOR THE RATEPAYER, IT'S BETTER TO OWN YOUR OWN PROPERTY. PAYING LEASES HAS A MARKUP AND PROFIT FOR SOMEBODY. THEY'RE OKAY IN A SHORT-TERM CRUNCH, BUT WE HAVE INCREASED OUR LEASING SPACE AROUND THIS CITY AND WE REALLY SHOULDN'T BE. WE'RE GOING TO BE AROUND FOR HUNDREDS OF YEARS. WE SHOULD BE IN THE BUSINESS OF OWNING OUR OWN REAL ESTATE BECAUSE IT'S CHEAPER FOR THE RATEPAYER, SO THERE IS A LOT OF VACANT PROPERTY THROUGHOUT THE COMMUNITY, BUT AS WES SAID, THIS IS A PRETTY SPECIALIZED BUILDING, AND IT'S ON CITY PROPERTY, SO WE'RE NOT PAYING PROPERTY TAX, WE DIDN'T HAVE TO BUY PROPERTY. WHEN YOU LEASE, THAT'S ANOTHER THING YOU DO IS PAY PROPERTY TAXES AND OTHER TAXES, WE DON'T DO THAT BECAUSE WE'RE TAX EXEMPT. JUST WANTED TO ADD THAT AS WELL. >> Mayor Guajardo: THANK YOU, MR. ZANONI. COUNCILMAN SCOTT? >> Scott: WES, THIS IS A GREAT PRESENTATION. I HAD A CONVERSATION WITH SOMEBODY AT THE CITY JUST RECENTLY ABOUT -- JUST TELL ME WHAT YOU THINK OUGHT TO HAPPEN. JUST TELL ME WHAT YOU THINK, YOU KNOW, IF YOU THINK IT OUGHT TO BE 10 SQUARE FEET, THEN JUST SAY 10 SQUARE FEET. DON'T SAY I'LL TAKE TWO IF YOU'LL GIVE IT TO ME. I WANT TO REALLY COMPLIMENT YOU ON YOUR PRESENTATION. I HAD TO LAUGH, I WAS CHUCKLING BECAUSE WHICH -- MY EMPLOYER'S GONE THROUGH THE ROOF FOR THREE WEEKS BECAUSE OF A RENEWED LEASE AT OUR VICTORIA SITE BECAUSE HE HATES LEASING BECAUSE IT JUST DOESN'T MAKE ANY SENSE IF THAT'S YOUR BUSINESS MODEL. I DO WANT TO SIGNAL THAT I WAS CLEARLY NOT INVOLVED IN THE LAST COUPLE OF CIPS, BUT I'M LOOKING FORWARD TO THIS CONVERSATION, AND MY GOAL IS TO TRY TO RATCHET DOWN THAT PROGRAM, BECAUSE IT'S IMPACT ON COST, YOU KNOW, SO I'M JUST KIND OF SIGNALING, YOU KNOW, OUR CONVERSATION FROM MY PERSPECTIVE IN THE NEXT COUPLE OF MONTHS WILL BE LOOKING FOR WAYS TO RATCHET THAT DOWN. THAT'S A POOR CHOICE OF WORDS, I DO RECOGNIZE THIS HAS BEEN IN THE CIP FOR A COUPLE OF YEARS. I'M CURIOUS -- WE'VE EXPENDED SOME MONEY ON THIS PROJECT ALREADY. >> YES, SIR. >> Scott: HOW MUCH HAVE WE SPENT TO THIS TO THIS POINT? >> RIGHT NOW WE HAVEEN KOWM BERRED SIX COMLD. >> Scott: TO THIS TO THIS POINT, TO GET OUR PERMISSION TO BUILD A BUILDING. WE MADE SOMEBODY TO DESIGN. >> Zanoni: THE DESIGN. >> Scott: I ACTUALLY DID TRY TO LOOK THIS UP. I'M NOT COMPLETELY LAZY ON THIS ISSUE. >> YES. THE DESIGN -- >> Scott: I'M SURE IT'S THERE, BUT I'M NOT GOOD ENOUGH TO GET A BOOK LIKE COUNCILMEMBER CANTU IS. >> THE DESIGN WAS -- IT WAS 606,000 APPROXIMATELY. >> Scott: GOT IT. I GUESS MY POINT IS, THAT'S SOME SUNK COST. MAYOR I'LL RUN THROUGH THIS QUICKLY. THE PREVENTATIVE MAINTENANCE ASPECT IS SIGNIFICANT TO ME. I'M SENSITIVE TO OUR FRONT-LINE EMPLOYEES AND WE GIVE THEM THE EMPLOYMENT TO BE SUCCESSFUL, AND SAFETY WAS A BIG DEAL. SO YOU'RE TELLING ME IN YOUR OPINION THIS WOULD IMPROVE OUR SAFETY FOR OUR FRONT-LINE EMPLOYEES, I APPRECIATE THE OPPORTUNITY TO HAVE SELF-PERFORMING OPERATIONS WHICH YOU SAY COULD -- COULD OR LIKELY COULD NET US ENOUGH SAVINGS TO MAKE THIS PROJECT BREAK EVEN OVER A COUPLE OF DECADES, AFTER A WHILE. I TOTALLY GET THAT. AGAIN, I WANT TO TELL YOU THAT THE PRESENTATION WAS ENLIGHTENING FOR ME, I APPRECIATE THAT, AND I APPRECIATE YOUR COMMENTS TO COUNCILMEMBERS. I DID THAT ONE. FRONT LINE EMPLOYEES, PREVENTATIVE MAINTENANCE. THAT'S IT MAYOR. I WANT TO FINISH I'M VERY SENSITIVE TO CONSENT DECREE. I DON'T AGREE WITH SOME OF THAT, BUT THAT HAS NOTHING TO DO ABOUT TODAY. I JUST WANT TO GET THAT OUT THERE. I'LL SUPPORT IT. >> Mayor Guajardo: THANK YOU, COUNCILMAN SCOTT. COUNCILWOMAN CAMPOS? >> Campos: THANK YOU, MAYOR. YEAH, I HAD MY RESERVATIONS ON THIS PROJECT. AND ONE OF THE QUESTIONS THAT I ASKED YOU IS, IS THIS GOING TO CONTRIBUTE TO POSSIBLY IN THE FUTURE WASTEWATER REUSE? AND YOU WERE VERY HONEST AND YOU SAID NOT REALLY. BUT -- OR YOU CAN ELABORATE AS TO EXACTLY WHAT YOU SAID. >> YES. THIS PROJECT ITSELF, IT DOES NOT GET US TO THE REUSE FINISH LINE. BUT WHAT IT IS IS WHEN WE DO BUILD THE FACILITIES, THE TR STRUCTURES THAT WILL PROVIDE THAT REUSE WATER, THE PUMP STATIONS, ANY OF THE TREATMENT THAT'S NEEDED TO DO THAT, THESE EMPLOYEES ARE THE ONES THAT WILL BE PERFORMING THE MAINTENANCE ON THOSE FACILITIES. >> Campos: THANK YOU. THANK YOU SO MUCH FOR CLARIFYING THAT. >> YES, MA'AM. >> Campos: THE OTHER THING THAT I HAD ASKED YOU IS, YOU KNOW, HOW MANY ARE IN YOUR DEPARTMENT, NOT JUST THE 50 PEOPLE THAT WILL BE UTILIZING THIS BUILDING, BUT OVERALL, HOW MANY ARE IN YOUR DEPARTMENT? >> IN CCW, WE HAVE RIGHT UNDER 600 EMPLOYEES. WITHIN MY DEPARTMENT, IT'S ABOUT 310, 320 EMPLOYEES WITHIN MY DEPARTMENT. >> Campos: OKAY. AND WHAT I LOOK AT, TOO, WHEN -- THANKS TO FORMER COUNCILMAN JIM KLEIN AND OF COURSE COUNCILMAN HERNANDEZ, WHEN WE BRING UP MAINTENANCE, BECAUSE WE HAVE BEEN KNOWN -- WE HAVE A HISTORY OF NEGLECTING OUR MAINTENANCE. AND SO WHEN YOU'RE DISCUSSING THE COST, I THINK THAT WAS THE OTHER THING THAT REALLY CONVINCED ME THAT THIS -- THAT I WILL PROBABLY BE SUPPORTING THIS PROJECT, AND I'LL TELL YOU, YOU KNOW, SOME OF THE SAME REASONS -- OR REALLY ONE OTHER THING THAT I WANT TO EMPHASIZE OR ASK YOU ABOUT IS, IS THERE A POSSIBILITY THAT THIS BUILDING WILL BE ABLE TO CAPTURE SOME OF THE RAINWATER? YOU KNOW, SOME OF THE BUILDINGS -- THE NEW BUILDINGS THAT WE ARE STARTING TO BUILD, I WOULD LIKE TO MAKE SURE THAT WE INCLUDE SOME KIND OF RAINWATER CAPTURE. CAN YOU ASSURE US THAT THAT WOULD BE A POSSIBILITY OR THAT THAT WILL BE INCLUDED IN THE DESIGN? >> WE -- IT WASN'T INCLUDED IN THE ACTUAL ARCHITECTURAL DESIGN NOW. THE XERISCAPE, THE LANDSCAPE IS MINIMAL AS FAR AS WATER. THE CAPTURE OF THE RAINWATER WASN'T INCLUDED BECAUSE THERE'S NO REAL USE THERE FOR THAT AS FAR AS IRRIGATION USE. THAT'S WHY IT REALLY WASN'T LOOKED AT. IT WOULDN'T HAVE BEEN A COST BENEFIT TO THE AREA. >> Campos: I SEE. AND WHAT COULD WE DO, THOUGH, IN THE FUTURE, BECAUSE I KNOW FOR A FACT, YOU KNOW, THAT AS RESIDENTS, WHAT LITTLE RAIN WE DO GET, WE ALL USE IT. I MEAN, THE 55-GALLON LASTS, I MEAN, FOR MONTHS FOR ME. NOW, I CAN ONLY IMAGINE HOW MUCH WATER WOULD BE COLLECTED IF I HAD, YOU KNOW, 10 RAIN BARRELS, YOU KNOW, AT 55-GALLONS. SO I WOULD LIKE TO CHALLENGE, YOU KNOW, THESE NEW BUILDINGS THAT WE'RE DESIGNING, THAT WE NEED TO UTILIZE WHAT WE HAVE. SO I'D LIKE TO AT LEAST THROW THAT OUT THERE. >> YES, MA'AM. >> Campos: LET'S SEE. AGAIN, HOW MUCH MORE -- I THINK JUST TO BE CLEAR, BECAUSE, YOU KNOW, THE COST IS -- IS SOMETIMES -- YOU KNOW, WE -- WE REALLY DO AS CITY COUNCILMEMBERS -- NOT SOMETIMES, BUT WE DO WATCH OUR PENNIES AND DOLLARS. AND YOU EXPLAINING TO US THAT WE HAVE ALREADY CALCULATED IN THE LAST, I GUESS, TWO YEARS, THAT $6 MILLION HAS ALREADY BEEN ENCUMBERED. SO RIGHT NOW WHAT YOU'RE ASKING FOR IS TWO AND A HALF MILLION DOLLARS, RIGHT? >> YES. >> Campos: OF THE CIP? >> YES, MA'AM. >> Campos: I DON'T REALLY BELIEVE THAT IS UNREASONABLE, ESPECIALLY WHEN YOU'RE LOOKING AT WHAT IT WOULD DO TO THE WORKERS, THE ACTUAL EMPLOYEES THAT WORK IN THE WATER DEPARTMENT. I THINK WE NEED TO VALUE THEM, WE NEED TO LET THEM KNOW THAT THEY DESERVE A PLACE THAT, YOU KNOW, IS SAFE AND THAT, YOU KNOW, TAKES CARE OF THEM AND VALUES THEM AND SAYS, YEAH, WE WANT YOU TO RECEIVE TRAINING, BUT WE DON'T WANT YOU ALL CRAMPED UP IN THE HALLWAY OR WHAT HAVE YOU. COME ON, WE'RE BETTER THAN THAT. SO, AGAIN, I WILL BE SUPPORTING THIS PROJECT, AND HOPEFULLY MY FELLOW COUNCILMEMBERS WILL DO AS WELL. THANK YOU. >> Mayor Guajardo: THANK YOU, COUNCILWOMAN. COUNCILMAN BARRERA? >> Barrera: OKAY. THANK YOU, MAYOR. OKAY. SO I DIDN'T GET CLEAR, HOW MUCH WAS THE -- HOW MUCH WAS THE FEE FOR THE ARCHITECTURAL AND THE DESIGN? >> 600,000. >> Barrera: 600,000, SO WE'VE ENCUMBERED THAT. SOMETHING I HAD BEEN TOSSING AROUND KIND OF WITH THE AUDIT COMMITTEE, IS THERE A WAY TO TRACK HOURS WITH REGARD TO PROCUREMENT? AND THE REASON BEING, IS THERE A COST ASSOCIATED WITH PROCUREMENT AS WELL, AND, YOU KNOW, I THINK THAT'S SOMETHING WE SHOULD HAVE AS FAR AS KEY PERFORMANCE INDICATORS. BECAUSE YOU HAVE THAT OTHER DEPARTMENT, AND IN ESSENCE, IF WE KICK THIS CAN DOWN THE ROAD, THEN WE'RE GOING TO HAVE TO DO IT AGAIN, AND THEN THERE'S A COST ASSOCIATED AS WELL AS THE EXPERTISE OF -- HOW MANY OF YOUR TEAM WERE INVOLVED IN THIS PROCUREMENT? >> THAT WOULD BE TWO WASTEWATER MANAGERS ON THE WASTEWATER SIDE, AND THEN MOST OF CAMILLE'S TEAM IS INVOLVED. >> Barrera: HOW MANY PEOPLE? >> THAT WOULD BE ABOUT SIX PEOPLE. >> Zanoni: SIX JUST IN HIS DEPARTMENT, THEN YOU CAN ADD THREE OR FOUR IN PURCHASING, JEFF EDMONDS AND HIS TEAM, PROBABLY OVER A DOZEN PEOPLE, COUNCILMAN. [SIMULTANEOUS SPEAKING]. >> Barrera: IT GETS FRUSTRATING TO ME, AND COUNCILMAN HERNANDEZ' DEFENSE, I THINK HE'S VOTED AGAINST EVERY CAPITAL BUDGET SINCE I'VE BEEN HERE, SO WE CAN'T NECESSARILY HOLD HIM ACCOUNTABLE FOR SAYING, COUNCILMAN, YOU VOTED FOR THIS, BECAUSE I WOULD HAVE BEEN THE FIRST ONE TO SAY THAT. BUT ANYWAY, SO I THINK THAT'S THE THING, THAT THIS IS THE DIRECTION THAT TWO COUNCILS HAVE GIVEN YOU THAT BASICALLY WE SUPPORT THIS CAPITAL INVESTMENT. AND I THINK ONE OF THE REASONS IS THAT IT'S ADDITIONAL IMPROVEMENTS TO DISTRICT 3, EVEN THOUGH THE PUBLIC'S NOT OUT THERE, THERE'S TIMES THAT WE TAKE TOURS WITH SCHOOLS, AT LEAST -- WHAT IS IT? I REMEMBER EVEN WHEN I WAS IN SCHOOL, WE TOOK A TOUR OF AWAYS WATER TREATMENT PLANT. WE SAW THE BROWNIES, THAT WE THOUGHT -- YOU KNOW, OF WHAT THE PROJECT IS. SO I THINK THAT'S SOMETHING TO BE ABLE TO -- IT'S A COMMUNITY ASSET. AND ONCE AGAIN, YOU KNOW, WHEN YOU TIE DEBT, IT'S NOT A CREDIT CARD, IT'S A COMMUNITY ASSET. I USED TO WORK FOR THIS GUY REALLY, REALLY SHARP MAN, SUCCESSFUL IN BUSINESS, RETIRED NOW, SOLD IT FOR GAZILLIONS OF DOLLARS, AND HE USED TO SAY THAT THERE WAS A SAYING. HE SAYS WE CAN'T BE STUCK TRIPPING OVER DOLLARS, WHAT IT IS, LOOKING FOR NICKELS AND DIMES. AND I THINK THAT'S A CHALLENGE. I UNDERSTAND THE SENSITIVITY OF TRYING TO CUT BACK AND THE PUBLIC PERCEPTION, BUT I THINK WE NEED TO DO A BETTER JOB AS COUNCILMEMBERS TO UNDERSTAND, HEY, THIS IS AN IMPORTANT ASSET. REMIND ME, HOW MUCH -- I SEE DREW IS AROUND, MAYBE YOU CAN JUST ANSWER, PETER. HOW MUCH WAS THE SETTLEMENT WITH THE CONSENT DECREE TO WHERE WE'VE HAD TO COMMIT TO SO MUCH CAPITAL IMPROVEMENTS? I THINK IT WAS SOME UNGODLY FIGURE AND I FORGET. >> SEVEN. >> Barrera: 750 MILLION. OKAY. >> Zanoni: GO AHEAD, COUNCILMAN. >> Barrera: 750 MILLION. COUNCILMAN HERNANDEZ SO ELOQUENTLY BROUGHT IT UP, BECAUSE HE'S ON IT. I THINK AS A RESULT OF MODERNIZING THIS, YOU HAD BROUGHT UP COST-SAVING MEASURES AND EXTENSION OF ASSETS. YOU KNOW, DID YOU PUT -- SO WHAT -- WHAT IS THE TOTAL AMOUNT OF ASSETS THAT WE'RE PRESERVING BY -- THAT WE WILL BE PRESERVING BY HAVING A MODERNIZED FACILITY. >> WELL, IF YOU JUST GO BY THE CIP INVESTMENT THAT WE'VE HAD ALONE, YOU'RE TALKING $200 MILLION IN ASSETS THAT WE'VE UPGRADED IN THE LAST FIVE YEARS. THAT DOESN'T INCLUDE CONTRACTS FOR PUMPS THAT WE'VE REPLACED, WHICH IS IN THE TUNE OF ABOUT 300,000 A YEAR ON PUMPS THAT WE'VE REPLACED. AS WELL AS THE EXISTING PUMPS THAT ARE IN SERVICE. SO WELL NORTH OF $500 MILLION IN ASSETS. >> Barrera: AND I JUST WANT TO ADD, IT'S APPLES AND OARNLS A ORANGES A LITTLE BIT, BUT HERE WE RECOGNIZE THE CREW THAT GOT MARY RHODES UP AND RUNNING AND THAT'S THE TIME OF COMMITMENT THAT YOUR TEAM HAS. BECAUSE THE LESS WE HEAR FROM YOU GUYS, THE BETTER WE'RE TAKING CARE OF OUR COMMUNITY. SO THE CAPITAL IMPROVEMENT BUDGET WAS. >> Zanoni: FIRST APPROVED IN 2022 COUNCILMAN. >> Barrera: AND THEN I KNOW MAYOR HOWARD, I WILL SAY, THERE WAS SOME TRAINING THAT THEY HAD TO DO. THEY TYPICALLY WOULD HAVE TO GO TO AUSTIN TO GET THESE CERTIFICATIONS. YOU DO TRAINING HERE LOCALLY FOR SOME OF THE COMMUNITY PARTNERS -- >> WE DO. WE PARTNER WITH TEXAS WATER FACILITIES ASSOCIATION AND T TEKS AS WELL AS OTHER ENTITIES AROUND TOWN. >> Barrera: THAT'S IMPORTANT TO SAY FOR PARTNERING WITH PEOPLE THAT DON'T HAVE THE RESOURCES, HE SAID THE CLASS WASN'T THE PROBLEM, AND THE PER DIEM THAT THOSE INDIVIDUALS NEEDED, THEY COULDN'T AFFORD THE HOTEL AND THE TRAVEL. I'LL MOVE FURTHER. SO THERE'S ALWAYS A COST ASSOCIATED WITH WAITING. I WISH WE COULD QUANTIFY THAT. I MEAN, I ALWAYS FIGURE THE RULE OF 72, IN 10 YEARS, IF IT'S 7% INTEREST, THE COST IS GOING TO DOUBLE. SO WE KICK THAT CAN DOWN THE ROAD, YOU KNOW, AND INFLATIONARY COST IS RIGHT AT ABOUT 3% RIGHT NOW, SO, YOU KNOW, WHATEVER IT IS, IT'S GOING TO CONTINUE TO INCREASE THE COST. THE COST OF LABOR GOES UP, THE COST OF MATERIALS, KICKING THAT CAN DOWN THE ROAD IS ONLY GOING TO REQUIRE ADDITIONAL COST. IT DOESN'T SAVE ANY MONEY. ONCE AGAIN, TRIPPING OVER DOLLARS TO PICK UP NICKELS AND DIMES. YOU KNOW, WE ADDRESSED THE LEASING. I THINK IT'S ALWAYS IMPORTANT THAT WE OWN THE ASSET, WHAT IS IT -- BECAUSE WE'RE GOING TO HAVE TO REOUTFIT IT ANYWAY. I MEAN, THAT'S THE CHALLENGE. SOMEBODY CALLED ME THE OTHER DAY ABOUT TRYING TO LEASE ANOTHER SUBSTATION, AND I SAID, WELL, IT'S GOING TO HAVE TO BE REOUTFITTED, AND A LARGE PORTION OF THE COST IS DUE TO THAT. SO IT'S -- ONCE AGAIN, IT'S NOT NECESSARILY -- EVEN THOUGH I UNDERSTAND THE METHODOLOGY. ALSO DOES THIS -- TELL ME ABOUT THE SAFETY THAT IT IMPROVES. >> SO, AGAIN, OUR -- THE MAIN FORCE THAT WORKS OUT OF THIS BUILDING ARE MECHANICS AND ELECTRICIANS. SO THESE INDIVIDUALS GO OUT TO THE PLANTS AND THEY'RE OPERATING LARGE VALVES, LARGE GEARS. THEY -- MORE IMPORTANTLY, THEY'RE RESPONSIBLE FOR ALL THE ELECTRICAL FEEDS THAT COME INTO THE PLANT AND EVERYTHING AFTER THAT. ANY TIME YOU'RE DEALING WITH ELECTRICITY IN THAT RANGE, 480, YOU KNOW, IT -- IT -- THERE'S A CHANCE OF ARC FLASH, THERE'S THINGS THAT YOU HAVE TO PROTECT YOURSELF AGAINST TO ENSURE THAT YOU ARE SAFE AND OTHERS ARE SAFE. EVEN PEOPLE WHO HAVE BEEN DOING THIS, YOU KNOW, 20, 30, 40 YEARS, SUCCUMB TO ACCIDENTS. AND WE DON'T WANT TO HAVE THAT HAPPEN. WE HAVE A VERY, VERY GOOD TRACK RECORD. WE WANT TO CONTINUE THAT. BUT TO CONTINUE THAT, WE ALSO NEED THE TRAINING. FURTHER MORE, NOT JUST THE TRAINING AND SAFETY, SO MUCH OF THE TECHNOLOGY NOW IS SHIFTING TO DIGITAL. YOU'RE SEEING PLCS THAT ARE CONTROLLING THESE PUMPS, JUST LIKE YOUR CAR. YOU KNOW, USED TO, IT WAS A CASH RATE FOR AND GAS PEDAL AND YOU COULD GO ANYWHERE YOU WANTED. NOW EVERYTHING'S ELECTRONIC. OUR TEAMS ARE HAVING TO SHIFT FOCUS WHERE WE HAVEN'T HAD TO DO THAT IN THE PAST, WHERE WE'RE BUILDING THESE CONTROL PANELS, THESE PLCS TO OPERATE THE PUMPS. IT REALLY IS A BENEFIT TO THE CITY TO BE ABLE TO DO A LOT OF THAT WORK IN-HOUSE. I.T. DOES A LOT OF THAT WORK, PETER COLLINS AND HIS GROUP DOES THAT. SO IT'S VERY BENEFICIAL FOR US TO DO THE SAME THING. >> Barrera: ALL RIGHT. AND FINALLY, I JUST WANT TO THANK YOUR TIME. I MTEAM. THEY'VE BEEN ABLE -- MY SON WORKED OBVIOUSLY OUT ON THE RIG. HE SAID TOO MANY OF THEM ARE RUNNING ON DUCT TAPE AND RUBBER BANDS. I WANT TO COMMEND YOUR TEAM FOR DOING THAT, TO TRY TO EXTEND WHAT WE HAVE TO GET TO THIS POINT. KEEP UP THE GOOD WORK. WE'RE PROUD OF YOU. >> THANK YOU. >> Mayor Guajardo: THANK YOU, COUNCILMAN. COUNCILWOMAN PAXSON? >> Paxson: THANK YOU, MAYOR. A COUPLE OF THINGS. I'D LIKE TO JUST TAKE 10 SECONDS OF MY LAST FIVE MINUTES TO SAY, I THINK THAT FOR TOPICS LIKE THIS, WE'RE CHARGED WITH TAKING ALL THE INFORMATION, PAST, PRESENT AND FUTURE, AND DETERMINING THE BEST DIRECTION TO MOVE FORWARD. I THINK COMMENTS THAT ARE INTENDED TO BE DIGS, PROFESSIONAL DIGS, SUCH AS AS WE KNOW CERTAIN COUNCILMEMBERS DISAGREE WITH PROCESSES OR HAVE THEIR FAVORITE PROCESSES THAT TAKE 10 YEARS, THEY DON'T AID TO THE CONVERSATION. I THINK THAT -- YOU KNOW, WE CONTINUALLY STRESS DECORUM ACROSS EVERYONE THAT COMES INTO THIS ROOM, AND I THINK WE NEED TO, AS LEADERS ALSO HOLD OURSELVES TO DECORUM. SO I'M GOING TO STICK THAT TO THE WALL. IF WE'RE REFERENCING SOMEONE'S PAST INPUT ON A PROJECT, IT NEEDS TO MOVE THE CONVERSATION FORWARD. WE DON'T NEED DIGS. THE NEXT ITEM I'D LIKE TO DISCUSS. SO CAPITAL IMPROVEMENT PROJECTS, I UNDERSTAND THAT OUR REGULAR OPERATIONS IS REGULAR ONGOING MAINTENANCE AND OPERATIONS, CAPITAL IMPROVEMENT PROJECTS, THAT'S AN ITEM THAT IS NOT A REGULAR MAINTENANCE TOPIC. IT'S SOMETHING THAT WE WOULD LIKE TO DO THAT IS A ONE-TIME COST TYPICALLY, SOMETIMES IT'S SPREAD OVER A COUPLE YEARS, BUT ESSENTIALLY WE'RE NOT GOING TO CONTINUE TO BUILD THIS PROJECT OVER THE DURATION OF ITS LIFESPAN. SO TO ME, IF THIS IS AWAYS WATER CAPITAL IMPROVEMENT PROJECT, MY PREFERENCE WOULD, OF COURSE, BE, ONE, LET'S MAKE SURE WE'RE UPDATING OUR WASTEWATER INFRASTRUCTURE. THIS IS A PREVENTATIVE MAINTENANCE ITEM. I DON'T WANT ANYONE, DEPARTMENT ON THIS COUNCIL OR WHO'S LISTENING TO THIS MEETING TO THINK THAT WE DON'T VALUE PREVENTATIVE MAINTENANCE. I ABSOLUTELY DO. I WANT YOU GUYS TO HAVE ALL OF THE THINGS THAT YOU NEED TO PROTECT THE ASSETS OF THE CITY AND THEREFORE THE COMMUNITY. FOR MY PART IN THIS, I'VE NOTHING AGAINST THIS DEPARTMENT, NOR THE CONTRACTOR WHO HAS BID. AND LOOKING AT YOUR BID TAB, COMPARATIVELY, THEY GAVE US A REALLY GOOD PRICE, LOOKING AT ALL THE OTHER ONE THAT'S CAME IN, AND I THANK THEM FOR THAT. FOR ME, HOWEVER, I WOULD HAVE LIKED TO LOOK AT THIS WHOLE PROJECT -- AND THAT'S WHAT WE'RE DOING HERE. YOU'RE SAYING WE HAVE A NEED, WE HAVE A NEED TO STORE OUR EQUIPMENT, UPGRADE THE FACILITY THAT WE HAVE DISCUSSIONS AND TRAININGS FOR THE FUTURE, AND WE'RE SAYING, YES, WE AGREE, WE THINK YOU NEED THESE FACILITIES. FOR MYSELF, I THINK EIGHT AND A HALF MILLION, BECAUSE 475 OR 76 ROUNDS UP, EIGHT AND A HALF MILLION DOLLARS ON THIS NEW PROJECT, I'D LIKE TO SEE OTHER OPTIONS THAT ARE A LITTLE BIT MORE BUDGET FRIENDLY, AND IF WEAR OO GOING TO BE HELD TO HOW MUCH WE'RE PUTTING INTO CAPITAL IMPROVEMENT FOR WASTEWATER, REALLOCATE SOME OF THAT. IF WE'RE LOOKING AT TAKING EIGHT AND A HALF MILLION, MAYBE WE CAN BUILD A FACILITY THAT HOUSES THESE NEEDS FOR 2.5 AND TAKE THAT PORTION AND PUT IT INTO A DIFFERENT WASTEWATER CAPITAL IMPROVEMENT. THAT'S WHERE I'M COMING FROM. I WANT Y'ALL TO KNOW, I SUPPORT THE NEED. I RECOGNIZE IT. IT'S THE ABOUT IT .5 THAT'S A LITTLE UNPALATABLE FOR ME. WE'VE ALREADY BEEN NOTIFIED $7 MILLION DEFICIT FOR THE NEXT BUDGET. EVERYBODY'S GOING TO HAVE TO DO OPERATION CUTS. I GET IT, THIS IS CI P, IT'S NOT OPERATIONS, BUT ULTIMATELY, WE PAY THAT BACK. CIPS GET PAID BACK. SO THAT'S WHERE -- I WANT TO PUT THAT OUT THERE. I SUPPORT THE NEED, NOT THE PRICE TAG. >> Mayor Guajardo: COULD YOU, WES -- COULD YOU TALK TO US ABOUT THE PRICE TAG. THIS ISN'T SOMETHING I WOULD IMAGINE THAT -- I WOULD IMAGINE THIS IS THE BOTTOM LINE, THIS IS THE COST ASSOCIATED WITH THE NEED, NOT A WANT. >> YES. NO, WHEN WE DESIGN THESE FACILITIES, WE BASE THEM ON THE ABSOLUTE NEED THAT WE HAVE AT THE TIME. WE DON'T OVERSIZE. IN FACT, YOU -- IF YOU WERE IN THE PRIVATE SECTOR, NORMALLY YOU'D PROBABLY BE LOOKING FURTHER OUT, AND DESIGNING STRUCTURES THAT ARE GOING TO FIT YOUR NEED IN THE FUTURE. THIS ONE IS FITTING OUR NEED WITH OUR CURRENT GROWTH PROJECTIONS AND OUR CURRENT FLOWS THAT WE'RE PROJECTING IN THE FUTURE. THIS PRICE -- THIS IS, JUST SO Y'ALL KNOW -- THE SECOND TIME THIS HAS GONE OUT FOR BID. THE FIRST TIME WE RECEIVED ZERO BIDS ON THIS PROJECT. THE SECOND TIME, WE RECEIVED -- WE WERE VERY HAPPY, WE RECEIVED A LOT OF BIDS, LOCAL CONTRACTOR WHO WE'VE HAD SUCCESS WITH, WHO, YOU KNOW, SUPPORTS A LOT OF THE LOCAL ECONOMY WAS THE LOW BIDDER, BARCOM, AND IT WAS VERY COMPETITIVE, $524 A SQUARE FOOT APPROXIMATELY. SOME OF THE OTHER PROJECTS THAT JEFF HAS GIVEN ME TO DO A COMPARISON WHEN I CALLED TO ASK IF IT WAS COMPETITIVE WITH, THE FIRE STATION 3 WAS $600 A SQUARE FOOT, AND I THINK THE POLICE SUBSTATION, HE SAID, WAS AROUND SEVEN. >> Mayor Guajardo: RIGHT. >> 800. >> OH, 800, SORRY. 800. >> Mayor Guajardo: SQUARE FOOT. OKAY. >> SO THIS PROJECT, COMPARATIVELY VERY AFFORDABLE. >> Zanoni: YEAH. CONTINUIN G, IF WE DID NOT APPROVE THIS, THAT 8.4 GOES TO WHATEVER. I MEAN, DEPENDING ON THE TIME MOVING FORWARD, BECAUSE TIME IS MONEY. MR. ZANONI? >> Zanoni: I WAS JUST GOING TO SAY, ALL OF OUR CAPITAL PROJECTS HAVE WHAT THEY CALL A PROBABLE COST ESTIMATE FROM THE ENGINEER THAT DESIGNED IT, AND THAT'S OUR BASIS POINT. SO THE PROBABLE COST ESTIMATE WAS 11 MILLION. AS YOU MENTIONED, COUNCILWOMAN STRONG COMPETITIVE BIDDING THE BID IS AT 8 MILLION, SO 3 MILLION SAVINGS FROM WHAT WE THOUGHT IT WOULD BE AND INITIALLY DESIGNED IT TO BE. AND I WOULD JUST ADD COUNCILMAN HERNANDEZ, I BRING IT UP AS A POSITIVE, THAT HE'S BEEN AN ADVOCATE FOR THE 10-YEAR CIP PROGRAM. SIX YEARS AGO WHEN I GOT HERE, IT'S PROBABLY BECAUSE OF HIM THAT WE HAVE A PLAN. AT THE TIME WITHOUT ME BEING HERE AND SOMEBODY IN THE CITY MANAGER'S OFFICE TO LEAD IT, COUNCILMAN HERNANDEZ LED IT FOR THIS COUNCIL AND THE CITY. SO I'M PROUD TO SAY IT, THANKED'S WHY I HIGHLIGHT HIM EVERY TIME WE TALK ABOUT THE CIP. SO IT'S NOT A DIG, IT'S A COMPLIMENT THAT WE'RE PROBABLY ONE OF THE ONLY BIG TEXAS CITIES THAT HAVE A 10-YEAR PLAN, MVA TWO OR A THREE OR A FIVE. BUT WE HAVE A 10-YEAR CIP PLAN. WHENEVER I QU GET A CHANCE TO HIGHLIGHT COUNCILMEMBERS THOUGH THEIR ORGANIZATION, I DO THAT. JUST SO WE'RE CLEAR. >> Mayor Guajardo: THANK YOU, PETER. COUNCILMAN HERNANDEZ? >> Hernandez: I WAS A LITTLE DISCOURAGED WHEN YOU HAD MENTIONED -- OR MAYBE IMPLIED THROUGH YOUR COMMENTS THAT YOU WOULD NO LONGER DO PREVENTATIVE MAINTENANCE IF YOU DID NOT BUILD THIS BUILDING. CAN YOU CLARIFY THAT? >> AND IF I SAID THAT, THAT IS NOT MY INTENT. WE CONTINUE TO DO PREVENTATIVE MAINTENANCE. >> Hernandez: OKAY. SO WHERE YOU HAVE THIS BUILDING OR NOT, YOU'RE GOING TO CONTINUE DOING PREVENTATIVE MAINTENANCE IN ACCORDANCE WITH WHAT WE NEED FOR THE CONSENT DECREE. >> WE WILL CONTINUE TO DO THE PREVENTATIVE MAINTENANCE THAT WE HAVE THE ABILITY TO DO WITH THE FACILITIES AND RESOURCES THAT WE HAVE AVAILABLE. >> Hernandez: OKAY. SO IN LOOKING AT THE OVERALL COST OF THIS PARTICULAR WAREHOUSE, WHEN YOU FACTOR IN ALL THE COSTS ASSOCIATED WITH THE CIP, ABOUT $13 MILLION, IT'S MORE LIKE $800 A SQUARE FOOT, NOT JUST THE CONSTRUCTION OF THE 500 SQUARE FOOT; IS THAT CORRECT? >> YES, SIR. >> Hernandez: SO I WANT TO MAKE SURE WE'RE CLEAR ON THE COST. AND IN TERMS OF SPENDING THE MONEY, RIGHT, I ALWAYS -- KIND OF EQUATING THIS TO, LIKE, OH, WE'RE SAVING MONEY BY SENDING THIS AMOUNT OF MONEY. THIS IS BORROWED MONEY. IF YOU DON'T SPEND IT, YOU DON'T SPEND IT. IT DOESN'T COME FROM SOMEWHERE ELSE. IT'S JUST MONEY YOU'RE NOT BORROWING RIGHT? >> YES, SIR. >> Hernandez: OKAY. SO THAT -- I WANT TO MAKE SURE THAT WE DON'T -- YOU KNOW, OBFUSCATE THIS, YOU KNOW, THING WITH THE CAPITAL IMPROVEMENT PLAN AND BUDGET, THAT IT IS BORROWED MONEY. ULTIMATELY, ALL THESE CAPITAL PROJECTS ARE THROUGH REVENUE BONDS THAT WE HAVE TO PAY BACK OVER A 30-YEAR PERIOD. DO YOU KNOW HOW MUCH WE'RE IN DEBT IN THE WASTEWATER FUND RIGHT NOW? >> NOT OFF THE TOP OF MY HEAD, NO SIR. HERN >> Hernandez: OKAY. SO THAT WOULD BE KIND OF -- YOU KNOW, LIKE I SAID, WE'RE GOING TO VOTE ON ANOTHER ITEM THAT'S $102 MILLION COMING FORWARD OUT OF REVENUE BONDS. >> YES, SIR. >> Hernandez: OKAY. THAT -- AND I'M GOING TO VOTE FOR THAT, BECAUSE IT IS AN IMPORTANT THING THAT WE NEED TO DO FOR THAT PARTICULAR PLANT IN OPERATIONS. IT'S TO MAKE SURE THAT, YOU KNOW, WE CHANGE THE FORMAT TO WHERE IT DOESN'T PROVIDE THE SMELL TO THE RESIDENTS AROUND IT. YOU KNOW, IT'S OBLIGATIONS THAT WE HAVE WITH THE CONSENT AGREEMENT. I WOULD LOVE TO HAVE THIS. IF WE HAD THE MONEY FOR THIS, GREAT. BUT THIS ALL COMES ULTIMATELY ON THE RATEPAYERS. AND SO WHEN WE'RE UP HERE DURING BUDGET TIMES AND TRYING TO JUSTIFY, YOU KNOW, SPENDING MONEY OR RAISING RATES, HECK, WE HAVE AN ITEM ON THERE THAT'S ABOUT WATER RATES THAT WE HAVE SOME PEOPLE IN THE AUDIENCE THAT ARE HERE TO DISCUSS. OKAY. SO WE'VE GOT TO MAKE SURE WE'RE SPENDING THIS MONEY PROPERLY. AND, YOU KNOW, WITH THE THOUGHT PROCESS THAT, YOU KNOW, WE ULTIMATELY ALL HAVE TO PAY FOR THIS THROUGH OUR RATES. AND THERE'S NO PROTECTIONS ON THE UTILITY BILL. IF YOU'RE OVER 65 ON YOUR TAXES, IT'S CAPPED. YOU DON'T HAVE THAT ON YOUR UTILITY BILL. SO I'M MINDFUL OF THIS. I'M MINDFUL OF THIS. SO I'M STILL VOTING AGAINST IT. THANK YOU. >> YES, SIR. COUNCILMA N CANTU? >> Cantu: THE $8.4 MILLION, IF IT DOESN'T GET APPROVED TODAY, WHAT WILL HAPPEN WITH THAT MONEY? WHAT CAN Y'ALL SPEND WITH THAT MONEY? >> [OFF MIC] >> Zanoni: WE WOULDN'T SPEND IT COUNCILMAN. AS HERNANDEZ SAID, WE'RE GOING TO BORROW SOME OF THIS, SO WE WOULDN'T BORROW THE DEBT, WE WOULDN'T ISSUE THE DEBT. >> Cantu: GOT IT. OKAY. THANK YOU. COUNCILMA N ROY? >> Roy: GREAT PRESENTATION. I THINK -- AND I APPLAUD MY FELLOW COUNCILMEMBERS THAT HAVE -- THIS IS CERTAINLY A TOPIC OF INTEREST THAT EVERYBODY HAS GREAT CONCERN. I THINK PART OF OUR JOB IS TO SIT HERE, AND ONE OF THE THINGS THAT I SAID WHEN I WAS ELECTED IS THAT I WOULD LISTEN. AND I'VE LISTENED TO EVERYBODY. AND -- BUT ONE OF THE THINGS THAT THIS REMINDS ME OF IS THAT WHEN MOST OF US, WHEN WE SAT IN FRONT OF PANELS AND WE WERE GOING THROUGH THE ELECTION PROCESS, THERE'S A QUESTION, I THINK THE POLICE DEPARTMENT ASKED IT, THE FIRE DEPARTMENT, EVERYBODY SAID, HOW DO YOU VIEW PEOPLE? DO YOU VIEW PEOPLE AS INFRASTRUCTURE? I DON'T KNOW IF ANY OF US REMEMBER THAT QUESTION, BUT IT WAS ASKED MULTIPLE TIMES THROUGH MULTIPLE ORGANIZATIONS. AND THAT'S REALLY KIND OF WHAT WE'RE LOOKING AT TO DAY, IS THE FACT THAT YOU HAVE A PROGRAM -- AND I'VE BEEN ON COUNCIL WHEN WE DIDN'T DO PREVENTATIVE MAINTENANCE BEFORE GIL HERNANDEZ IN THE BEGINNING WHEN WE WERE DEALING WITH TRYING TO JUST MAKE SURE THAT THE -- OUR WATER BILLS WERE ACCURATE, YOU KNOW, AND LOOKING AT -- AT THAT TIME THE SENTIMENT WAS THAT, DO YOU WANT TO BE ABLE TO VEND EVERYTHING OUT? BECAUSE WE DIDN'T WANT ASSETS. AND THAT CAUSED A BIG PROBLEM. WE HAD A LOT OF ISSUES, WE HAD A LOT OF PEOPLE COMPLAINING THAT THEIR GRASS WASN'T GETTING CUT IN PUBLIC PLACES AND ALL THE OTHER THINGS, AND I SEE COUNCILMEMBER DEBRA LINDSAY OH, PAL OUT THERE SHAKING HER HEAD, BECAUSE SHE REMEMBERS THOSE DAYS, TOO. SO WE'VE MOVED THE NEEDLE A LONG WAY SINCE THOSE DAYS, AND WE HAVE THE ASSETS, WHICH IT'S IMPORTANT TO HAVE ASSETS. AND I THINK ABOUT THE ABILITY FOR YOU AND YOUR STAFF TO BE ABLE TO DO THEIR JOB IN A SAFE, CONCISE METHOD, AND TO BE ABLE TO CAPITALIZE ON BEING ABLE TO DO THE THINGS THAT THEY CAN DO THAT WILL SAVE US MONEY. IF YOU DON'T HAVE THE TOOLS, WHY DON'T WE JUST STOP, SEND THE FIRE DEPARTMENT OUT WITH A BUCKET, AND JUST BUCKETS, LIKE THEY DID IN THE OLD DAYS SO THEY COULD JUST LINE UP AND TAKE A BUCKET, ONE BY ONE, AND TRY TO PUT THE FIRE OUT. WE HAVE TO BE ABLE TO PROVIDE THE ASSETS, THE THINGS, IN ORDER TO KEEP THE CITY MOVING. WE'VE GOT SOME ENGINEERS IN HERE, I BELIEVE -- I THINK -- CAN SOMEBODY RAISE THEIR HAND IF THEY'RE ENGINEERS. OKAY. WE'VE GOT A LOT OF ENGINEERS HERE, BUT THE BOTTOM LINE IS, IS THAT THE ENGINEER PUTS THEIR LICENSE AT RISK WHEN THEY SIT THERE AND TAKE A LOOK AT THE PROJECTS THAT ARE INVOLVED. I KNOW THAT ERNIE DE LA GARZA USED TO SAY, LOOK, I'VE GOT TO PUT MY SEAL ON THIS. I WANT TO MAKE SURE THIS THING IS SAFE. AND WE HAVE TO LOOK AT SAFETY. WE HAVE TO LOOK AT ALL THOSE THINGS THAT WE TALKED ABOUT. I'M NOT GOING TO BELABOR IT, BECAUSE THE COUNCIL DID A GOOD JOB GOING OVER THIS TOPIC. I SUPPORT IT. I UNDERSTAND IT COSTS US, I UNDERSTAND IT'S PART OF THE BUDGET. I APPRECIATE YOU EXPLAINING THE FACT THAT IT WILL COST THE AVERAGE RATEPAYER THREE CENTS PER YEAR? >> YES, SIR. >> Roy: AND THAT'S IMPORTANT TO UNDERSTAND, BUT I SUPPORT IT WHOLEHEARTEDLY, AND I'M JUST AS CONCERNED ABOUT DEBT AS ANYBODY ELSE IS. SO THANK YOU. AND AGAIN GREAT PRESENTATION. >> Mayor Guajardo: THANK YOU, COUNCILMAN. MR. ZANONI? >> Zanoni: COUNCILMAN ROY, I JUST WANT TO PICK UP ON WHAT YOU SAID, BECAUSE THIS IS IMPORTANT FOR THE COUNCIL TO HEAR. SO WE ARE AN ENTERPRISE OF 4,000 EMPLOYEES, AND WE'RE COMPETING EVERY DAY WITH THE PRIVATE SECTOR, WITH OTHER ENTITIES TO ATTRACT AND RETAIN PROFESSIONALS THAT WORK ACROSS 29 DIFFERENT LINES OF BUSINESS. WHAT THEY SEE WHEN THEY SHOW UP TO WORK IS VERY IMPORTANT ON ARE THEY GOING TO STAY WITH US FOR A MONTH, A YEAR, FIVE YEARS. IT'S VERY EXPENSIVE TO TRAIN SOMEBODY ONLY TO HAVE THEM LEAVE, AND SO QUALITY OF PLACE IS EXTREMELY IMPORTANT IN OUR BUSINESS, AND THAT'S SOMETHING WE'VE BEEN WORKING ON FOR SIX YEARS, BECAUSE IT HASN'T BEEN THERE BECAUSE OF DEFERRED MAINTENANCE AND LACK OF INVESTMENT, BUT WHAT AN EMPLOYEE SEES WHEN THEY COME TO WORK, ALL 4,000 OF THEM, IS CRITICAL TO US FILLING POSITIONS, KEEPING PEOPLE HERE, KEEPING THEM HIGHLY PRODUCTIVE AND MOTIVATED, AND IT'S NOT -- IT'S PROBABLY HARD TO IMAGINE IF YOU'RE NOT IN THAT LINE OF BUSINESS, MANAGING 4,000 PEOPLE OR IF YOU'RE LIKE A DIRECTOR LIKE WES, BUT WE CAN ONLY DO SO MUCH WITH PAY AND BENEFITS, BUT MAKING SURE THEY HAVE A DECENT PLACE TO COME INTO WORK, TO USE THE RESTROOM, TO DO THEIR JOB, FABRICATE OR WHATEVER, IS SOMETHING THAT WE'VE BEEN WORKING ON. AND THAT'S WHY THAT 10-YEAR PLAN IS IMPORTANT, BECAUSE WE CAN PHASE IN OVER TIME IMPORTANT INFRASTRUCTURE TO KEEP OUR WORKFORCE HERE. 4,000 EMPLOYEES GO SOMEWHERE EVERY DAY, AND UNLESS WE HAVE QUALITY OF PLACE, THEY'RE GOING TO LEAVE AND GO SOMEWHERE ELSE. AND SO AS LEADERS OF THIS ORGANIZATION, WE'RE TELLING YOU, WE NEED GOOD PLACES FOR OUR EMPLOYEES TO COME TO WORK, BECAUSE WE SEE THE TURNOVER RATE, AND IT'S ASKED EVERY BUDGET, WHAT'S THE TURNOVER RATE IN THAT DEPARTMENT, 10, 15%, WOW, THAT'S HIGH. YES, IT'S HIGH. AND IT'S BECAUSE IN SOME PART OUR FACILITIES AREN'T CONDUCIVE TO KEEPING TOP TALENT HERE. SO THE RECOMMENDATIONS HAS MANY PARTS TO IT, BUT COUNCILMAN ROY, I WANTED TO PICK UP ON YOURS, IF WE HAD TO DEPEND ON SOMETHING IT'S ABOUT THE PEOPLE. WE CAN'T DO ANYTHING WITHOUT THE 4,000 PEOPLE AND HOW THEY COME TO WORK AND WHAT THEY SEE WHEN THEY COME TO WORK AND WHAT RESTROOMS THEY USE, CAN THEY EVEN TAKE A BREAK, CAN THEY EVEN GET TRAINED APPROPRIATELY, ARE THEY STARING AT A WALL IN THE HALLWAY OR ARE THEY LOOKING AT THE INSTRUCTOR. THESE THINGS MATTER TO US AND THAT'S WHY WE'RE MAKING THIS RECOMMENDATION TODAY. >> Roy: HAD ME HAVE TAKEN THAT PHILOSOPHY MAYBE A LITTLE SOONER, WE WOULD HAVE SAVED OURSELVES $750,000. COUNCILWO MAN VAUGHN? >> Vaughn: I'M SO GLAD MY SCHOOL DIDN'T TAKE ME TO THE WASTEWATER PLANT DURING SCHOOL. THOSE POOR KIDS. REAL QUICK, MR. ZANONI, I DON'T WANT TO GO BACK TO WHAT WE WERE. I THINK THE CITY HAS MADE A LOT OF PROGRESS. I REMEMBER COMING HERE IN 2014, OUR ROADS WERE HORRIBLE, OUR MAINTENANCE WAS AWFUL. THAT'S WHEN THE CONSENT DECREE CAME, JUST LIKE COUNCILMAN ROY SAID. I DON'T WANT TO SPEND THIS MONEY, I DON'T. BUT I THINK WITH THE EQUIPMENT SITTING OUT, IT'S NOT GOOD. I DON'T LIKE THAT, AND NOT HAVING INVENTORY WHAT WE HAVE. BUT MY QUESTION TO YOU WOULD BE THIS: WE KNOW THAT THE TARIFFS ARE GOING TO BE IN PLACE, SO WE KNOW STEEL IS GOING TO GO UP. ARE WE GOING TO JUMP INTO THIS, OR ARE WE GOING TO WAIT JUST A MONTH, TWO MONTHS TO WAIT AND SEE WHAT HAPPENS BEFORE THEY GO DOWN BECAUSE WE DON'T WANT TO SPEND MORE THAN THIS. >> Zanoni: WE HAVE NUMEROUS PROJECTS ACROSS THE CITY, WHAT WE DO HAVE IS CONSULTANTS AND OUR OWN TEAM MEMBERS THAT LOOK FOR ALTERNATE MATERIALS. IF STEEL IS GOING UP, WE CAN USE SOME OTHER COMPONENT, WE DO THAT IN OUR CONSTRUCTION. THE CONTRACTORS ARE MINDFUL OF THAT. WE'RE LOOKING AT ALL THINGS IMPACTED BY TARIFFS AND WATCHING THEM CLOSELY, BUT WE DO KNOW NO MATTER WHAT THE PROJECT IS AND THE TARIFF MIGHT BE, INFLATION IS A KILLER FOR US. AND 3% THAT BARRERA MENTIONED, THAT'S THE CONSUMER BASKET OF GOODS. CONSTRUCTION INFLATION IS PROBABLY DOUBLE THAT, MAYBE ALMOST THREE TIMES THAT. I THINK IT'S TOO THE ADVANTAGE -- TO THE ADVANTAGE OF THE CITY TO PROCURE, PRODUCE AND BUILD NOW, BECAUSE EVERY DAY WE WAIT IT GETS MORE EXPENSIVE. THE ANSWER TO THE TARIFFS WE'LL WORK AROUND IT. THERE'S PLENTY OF ALTERNATIVE MATERIALS TO USE, SO WE'LL STAY WITHIN THIS BUDGET. THE BUDGET OF 8 MILLION , WE'RE PRETTY CONFIDENT THAT THOSE NUMEROUS BIDDERS HAD NUMEROUS PRICING FROM NUMEROUS SUBS, AND THEY ALL KNEW TARIFFS WERE AROUND. WE'RE CONFIDENT IN THAT NUMBER AND WE'LL LOOK AT ALTERNATE MATERIAL IF WE NEED TO. THANK YOU. >> Mayor Guajardo: ONE MORE COMMENT, COUNCILMAN BARRERA, AND THEN WER EA WE'RE GOING TO MOVE ON TO VOTE. >> Barrera: AND I'D LIKE TO THINK THAT COUNCILMAN HERNANDEZ AND I HAVE A LOT OF FUN TOGETHER. I KIND OF LOOK FORWARD TO IT. HE MAKES ME BETTER. HE COMPLETES ME. SO WHAT'S OUR CURRENT BOND RATING ON THESE REVENUE BONDS? >> Zanoni: IT'S IN THE HIGH GRADE CATEGORY, COUNCILMAN, SO THERE'S THREE CATEGORIES, LOW, MEDIUM AND HIGH, WE'RE IN THE HIGH GRADE CATEGORY. >> Barrera: AND THEN WHAT'S OUR DEBT COMPARED TO OTHER CITIES? >> Zanoni: YOU KNOW, WE WENT OVER THAT A YEAR AGO, BUT IT'S RELATIVELY LOW WHEN WE COMPARE OURSELVES TO THE SEVEN CITIES ABOVE US LIKE WE DO ON CERTAIN MATTERS, WE'RE PROBABLY ON THE LOW END. I DON'T KNOW IF DAN CAN -- RIGHT, WE'RE IN THE LOW END. OUR FINANCIAL ADVISER'S HERE, DAN SITTING NEXT TO HEATHER, SO WE'RE IN THE LOWER QUARTILE. >> Barrera: YEAH, I KNOW VICTOR HAS TOLD ME THAT WE'VE HAD DEBT CAPACITY, OBVIOUSLY, AND NOW THE OTHER THING IS, IS IT ALSO -- WHAT ALSO EFFECTS OUR BOND RAT RATING, AND ONE OF THE REASONS IT'S IMPROVED, CORRECT ME IF I'M WRONG, IS THE RATING AGENCIES ALSO LOOK AT REINVESTMENT INTO CAPITAL. >> Zanoni: RIGHT. >> Barrera: INTO OUR ASSETS? >> Zanoni: RIGHT. THEY DO. YEAH, SO OUR BOND RATING IS BASED ON SEVERAL THINGS INCLUDING HOW MUCH REVENUES WE BRING IN AT THE END OF THE YEAR, BUT THEY ALSO LOOK AT, A BIG PART OF IT, IS THE MANAGEMENT OF THE OPERATION AND THE MANAGEMENT AND INVESTMENTS IN THE INFRASTRUCTURE, SO THIS MEETS TWO OF THOSE TASKS. ONE, WE'RE INVESTING IN INFRASTRUCTURE THAT'S USED TO MAINTAIN HUNDREDS OF MILLIONS OF DOLLARS OF INFRASTRUCTURE, AND TWO, WE'RE INVESTING IN OUR MANAGEMENT OF DELIVERING SERVICES FOR THE CITY, AND SO THEY SEE WHEN EMPLOYEES GET TO GO TO A DECENT PLACE, THAT MEANS THEY MAY STICK AROUND LONGER, THAT MEANS YOU'RE PROBABLY GOING TO HAVE BI BETTER OPERATIONS, THAT MEANS I'LL INVEST IN YOU, CITY, WHEN I INVEST BONDS. CREDITORS SEE THAT, SO THEY SAY, YOU KNOW WHAT? THIS PLACE PROBABLY HAS IT TOGETHER SO THEIR CREDIT RATING SHOULD STAY OR EVEN BE IMPROVED. SO YES. >> Barrera: AND ONE LAST THING. I WANT TO COMMENT -- I WANT TO COMMEND YOU FOR YOUR BOLD INITIATIVE TO REINVEST INTO OUR -- THE ASSETS THAT WE HAVE. I MEAN, I KNOW, YOU KNOW, WHEN I FIRST SAW THE DETENTION CENTER AND THE MUNICIPAL COURT COMMITTEE, I REMEMBER SAYING TO YOU, SOMEBODY NEEDS TO GET FIRED FOR THIS. AND THAT WAS A LEASED PROPERTY, OF WHICH THE PROPERTY OWNER DID NOT -- OF WHICH NOW IS VACANT, OF WHICH THE AIR CONDITIONING WASN'T WORKING, OF WHICH I HAD SAID -- I REMEMBER WITH COUNCILMEMBER CAMPOS AND COUNCILMEMBER PUSLEY AND -- WHAT IS IT -- AND MICHAEL, MICHAEL HUNTER, COUNCILMEMBER HUNTER, AND WE LOOKED AT THAT AND WE WERE SHOCKED. ING AND I HATE WHEN YOU USE THE TERM NEGLECT, BUT THAT PLACE WAS IN SERIOUS NEGLECT. AND THE ENVIRONMENT THAT OUR EMPLOYEES HAD TO WORK IN TO BE ABLE TO PROCESS THOSE INDIVIDUALS, THE JUDGES -- AND THEN EVEN THEN, IT WASN'T SUITABLE FOR THE DETAINEES, YOU KNOW, THE NEGLECT OF -- >> POINT OF ORDER. IS THIS ON THE AGENDA. >> Barrera: I'M TALKING ABOUT NEGLECT. I MEAN, THAT'S WHAT IT IS. AND I'M JUST SAYING THAT WE DON'T NEGLECT. SO IF THE MAYOR WILL GRANT ME SOME LATITUDE -- THAT WHAT IS IT -- BECAUSE WE'RE TALKING ABOUT BOND RATING AND NEGLECT. WHAT IS IT, THE NEGLECT OF THE POLICE TRAINING ACADEMY, WHICH IS BEAUTIFUL IN DISTRICT 5, THE LACK OF AN AQUATIC FACILITY IN DISTRICT 5 THAT WE ALL GOT ON BOARD, THAT, HEY, I HAVE TWO AND A HALF MINUTES. TWO AND A HALF MINUTES. SO THE NEGLECT OF SEVERAL FIRE STATIONS WHERE WE HAVE TO COMMEND ALL THOSE FIREFIGHTERS FOR WORKING IN THOSE STATIONS IN DISREPAIR, I MEAN, SEVERAL OF WHICH ARE IN DISTRICT 3. AND NOW WE'VE GOT -- WE'VE GOT TWO MORE THAT ARE GOING TO BE -- THAT ARE GOING TO BE BUILT IN THERE. AND THOSE FIREFIGHTERS DESERVE THAT UPGRADED EQUIPMENT, BECAUSE THEY'RE STANDING OUT THERE WORKING TO PROTECT OUR LIVES. THE SAME THING WITH THIS FACILITY, YOU HAVE COMMITTED INDIVIDUALS THAT ARE TRYING TO PROTECT THE COMMUNITY THAT DON'T HAVE THE SAME ACCOLADES AS PUBLIC SAFETY, AND YOUR TEAM HAS BEEN THERE AND IN HAVING TO DEAL WITH DISREPAIR, NOW WE'RE GOING TO JUST REINVEST TO BE ABLE TO DO BETTER. THANK YOU VERY MUCH. I APPRECIATE THAT. >> Mayor Guajardo: THANK YOU, COUNCILMAN. WE'RE GOING TO GO AHEAD AND -- >> [OFF MIC] >> Mayor Guajardo: SO WE'RE GOING TO TAKE THE VOTE. THE LAST THING I'M GOING TO SAY ON THIS, PETER, IS THIS WAS PUT IN THE CIP IN 2022, WE'RE IN 2025, SO I'M NOT SURE WHY -- WE DON'T NEED TO GO INTO IT, BUT THAT'S THREE FULL YEARS AND THAT COST HAS ESCALATED OVER THREE YEARS, AND THIS COULDN'T -- TO SOME OF THE POINTS MADE EARLIER. WE COULD HAVE -- THIS COULD HAVE BEEN, I THINK, ON ITS WAY. SO THREE YEARS IS A LONG TIME. AND MAYBE THERE'S JUSTIFICATION FOR THAT, BUT JUST NOTE TO SELF ON THAT. >> Zanoni: YEAH. >> Mayor Guajardo: THANK YOU. SO WE'RE GOING TO GO AHEAD, I'M GOING TO ENTERTAIN A MOTION TO APPROVE ITEM NUMBER 19. >> MOTION TO APPROVE. >> SECOND. >> Mayor Guajardo: WE HAVE A MOTION AND WE HAVE A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. THANK YOU. WES, THANK YOU VERY MUCH. AND OUR LAST ITEM, WE'RE GOING TO BREAK FOR LUNCH AFTER THIS, IS THE LAST ITEM PULLED IS ITEM NUMBER 25, THAT IS AN ORDINANCE AUTHORIZING THE ACCEPTANCE AND APPROPRIATION OF A LITTLE OVER $15 MILLION GRANT FROM THE GLO TO IMPROVE OPERATIONAL RESILIENCY AT THE GREENWOOD AND OSO WASTEWATER TREATMENT PLANTS. AND WHO PULLED THIS ITEM? YOU DID, COUNCILWOMAN PAXSON, YOUR QUESTION OR COMMENT? >> Paxson: THANK YOU, MAYOR. MY QUICK QUESTION, I KNOW ANOTHER ITEM COMING DOWN THE AGENDA TODAY IS FOR THE GREENWOOD WASTEWATER TREATMENT PLANT. >> YES, MA'AM. >> Paxson: SO I WAS CURIOUS, THIS IS -- GOSH, I THINK THAT THIS WAS -- ANYHOO, I WANTED TO MAKE SURE IF WE WERE GOING TO GO IN AND BASICALLY REDO, THAT'S WHAT'S COMING DOWN OUR AGENDA TODAY, THAT THESE FUNDS ARE COMPLIMENTARY TO THAT PROJECT. ARE WE DUPLICATING -- >> NO. >> Paxson: YOU KNOW WHAT I'M SAYING? COULD YOU TELL ME THE RELATIONSHIP BETWEEN THESE TWO BUDGET ITEMS. >> SURE. WESLEY GIBBONS AGAIN, WASTEWATER INFRASTRUCTURE, THIS PROJECT IS RELATED TO FROODING AT THE SITE. IT'S SPECIFIC TO THE FLOODING THAT HAS OCCURRED HISTORICALLY. GLO IS GIVING THIS GRANT TO HELP MITIGATE THOSE FLOOD ISSUES WHERE WE HAVE HAD WATER INUNDATION IN PUMP ROOMS, IN THE INFLUENT PUMP ROOMS OR THE EFFLUENT, WHERE IT'S PUMPED OUT IN THE CREEK, IT'S KNOCKED OUT OUR UV BEFORE, THAT'S WHAT THIS PROJECT IS MAINLY GOING TO FOCUS ON. SOME OTHER FOCUSES ON THAT ARE GOING TO BE FOR THE POWER GENERATION AT THE PLANT. WE ARE WITHIN TCEQ RECOMMENDATIONS RIGHT NOW IN COMPLIANCE WITH THEM, WE HAVE TWO FEEDS THAT COME IN TO THE GREENWOOD PLANT, WHICH IS ALL YOU NEED; HOWEVER, AS YOU KNOW IN CORPUS CHRISTI WITH HURRICANES AND OTHER EVENTS, IT COULD KNOCK OUT BOTH POWER FEEDS. SO THIS PROJECT WILL ALSO INCLUDE POWER GENERATION, A STAND-ALONE GENERATOR FOR THE PLANT IN CASE WE LOST BOTH OF THOSE FEEDS. >> Paxson: THANK YOU FOR THAT. WHEN I SKIP AHEAD, IF I'M LOOKING AT THE DETAIL ON THAT ITEM FOR IT, IT'S BASICALLY SAYING THAT THIS IS -- THIS IS GOING TO BE UPGRADES AND EXPANSIONS TO MEET THE GROWING DEMANDS. SO TO ME, I READ THIS IS A SUBSTANTIAL IMPROVEMENT TO THAT FACILITY. WOULD FLOOD MITIGATION IN THESE TYPE OF -- >> NO, THE FLOOD MITTA MITIGATION IS NOT PART OF THAT. THE UPCOMING AGENDA ITEM FOCUSES MORE ON THE TREATMENT PROCESSES RATHER THAN THE FLOOD MITIGATION. >> Paxson: OKAY. >> SO WE'LL BE TALKING ABOUT ADDITIONAL CLARIFIERS, AIR YAITION BASINS, WE'RE GOING TO BE CHANGING ANAEROBIC SYSTEM TO ANAEROBIC SYSTEM. WE INTENTIONALLY LEFT THAT OUT BECAUSE WE HAD APPLIED FOR THIS GRANT AND HAD BEEN -- YOU KNOW, WE WERE FAIRLY CONFIDENT WE WOULD BE GETTING THE MONEY. SO THAT'S WHY IT WAS LEFT OUT WHEN WE APPLIED. >> Paxson: OKAY. THANK YOU FOR THAT CLARIFICATION. >> UH-HUH. COUNCILMA N CANTU? >> Cantu: IS THIS $15 MILLION GOING TO STOP THE SMELL OVER THERE ON GRUENEWOOD? >> NO, BUT THE $100 MILLION IMPROVEMENT PROJECT COMING FORWARD WILL. >> Cantu: IT WILL? >> THAT'S -- IT'S GOING TO HELP MITIGATE -- THAT'S ONE OF THE REASONS. >> Cantu: IT SMELLS REALLY BAD IN THAT AREA. >> AND IT'S BECAUSE IT'S AN ANAEROBIC PROCESS THAT WAS BUILT IN AN AREA THAT WASN'T NECESSARILY URBANIZED WHEN THE PLANT WAS BUILT IN THE '60S. NOW THAT HOMES HAVE BEEN BUILT AROUND IT, WE NEED TO CHANGE THE TREATMENT PROCESS TO MAKE IT -- >> Cantu: IS THERE ANY WAY WE COULD TRY TO FIX IT ANY KIND OF WAY? IS THERE ANY WAY TO FIX THAT? PUT A WALL UP, SOMETHING? >> THE NEW PROCESS WILL. WE'RE GOING TO ANAEROBIC PROCESS, JUST LIKE OSO. >> Cantu: HOW LONG IS THAT GOING TO BE? >> THE PROBABILIT PROJECT'S GOING TO BE ABOUT FOUR YEARS? >> Cantu: SO MY PEOPLE HAVE TO SMELL THAT FOR FOUR MORE YEARS? >> WE WILL DO EVERYTHING WE CAN TO ENSURE THAT WE DON'T HAVE THAT ISSUE. >> Cantu: YEAH. OKAY. I APPRECIATE IT. THANK YOU. >> Mayor Guajardo: I'LL ENTERTAIN A MOTION TO APPROVE ITEM NUMBER 25. >> MOTION. >> Mayor Guajardo: WE HAVE A MOTION. WE HAVE A SECOND. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. WES, THANK YOU VERY MUCH. THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEMS 29 THROUGH 32, PER TEXAS GOVERNMENT CODE 551.071 AND 551.072. WE WILL RETURN. [CITY COUNCIL IN EXECUTIVE SESSION] [EXECUTIVE SESSION] [EXECUTIVE SESSION] [EXECUTIVE SESSION] [EXECUTIVE SESSION] [EXECUTIVE SESSION] [EXECUTIVE SESSION] >> Mayor Guajardo: WE'RE GOING TO TAKE CARE OF Y'ALL'S ITEM RIGHT NOW. YEAH SORRY. WE'RE GOING TO CALL THE MEETING BACK TO ORDER. AND WE ARE GOING TO PICK UP ON SECTION M, INDIVIDUAL CONSIDERATION ITEMS, ITEM 26 WAS PULLED, BUT WE'RE GOING TO GO STRAIGHT TO ITEM 27, THAT IS A RESOLUTION AWARDING A CONSTRUCTION CONTRACT TO RAVA CONSTRUCTION FOR THE GREENWOOD WASTEWATER TREATMENT PLANT. MR. EDMONDS? >> Edmonds: GOOD AFTERNOON, MAYOR COUNCILMEMBERS. JEFF EDMONDS, DIRECTOR OF ENGINEERING SERVICES. I'M GOING TO TEE THIS UP, AND THEN THERE'S A PRESENTATION THAT WES IS GOING TO GO THROUGH TO TALK ABOUT THE SPECIFICS OF THE PROJECT. I REALLY WANT TO TALK ABOUT THE BID PROCESS. I THINK EVERYBODY REALIZES THERE WAS A STAFF RECOMMENDATION ON THIS THAT WAS PUBLISHED AND THE LOW BID HAD SOMETHING THAT WE CONSIDERED BID IRREGULARITIES THAT WERE CERTAIN ASPECTS THAT DIDN'T COMPLY WITH THE MINIMUM REQUIREMENTS OF THE BID. IT WAS BY A LITTLE BIT, BUT THEY DIDN'T COMPLY WITH THAT. AFTER THAT AGENDA ITEM PUBLISHED, WE HAD A SUBSEQUENT ADMINISTRATIVE HEARING WITH THE CONTRACTOR, IT WAS ATTENDED BY THE MANAGER, AND AFTER THAT MEETING, WE WERE -- WE RECEIVED ADDITIONAL INFORMATION ABOUT THE FINANCIAL CAPACITY, THE FIRM, ABOUT THE EXPERIENCE OF THE INDIVIDUALS INVOLVED AND WE FELT LIKE BASED ON THE FACT THAT, YOU KNOW, THE FIVE-YEAR THING IS NOT CAST IN STONE, IT'S NOT A LEGAL THING, IT'S A CITY THING, IT'S A STANDARD REQUIREMENT ON ALL OF OUR BIDS. IT'S A PROXY FOR RISK IN THE CONTRACTOR. NORMALLY A COMPANY THAT HASN'T BEEN IN EXISTENCE VERY LONG WOULD PRESENT AN ELEVATED LEVEL OF RISK AND THAT'S TYPICALLY WHY WE ASK FOR THEM TO HAVE A MINIMUM OF FIVE YEARS OF EXPERIENCE. IN TALKING TO THE CONTRACTOR, THE EXPERIENCE OF THEIR STAFF IS MUCH MORE THAN YOU WOULD TYPICALLY HAVE WITH A COMPANY THAT HAS ONLY BEEN IN EXNCE FOR FIVE YEARS. SO THEY WERE VERY SEASONED PEOPLE THAT HAVE BEEN IN THIS BUSINESS FOR A LONG TIME, AND WE THINK THAT THAT HELPS MITIGATE THAT FIVE-YEAR IN BUSINESS REQUIREMENT, SO THE CITY MANAGER FEELS LIKE THE $7 MILLION IN SAVINGS BY AWARDING TO THE LOW BID MORE THAN OFFSETS ANY RISK FROM THEM NOT HAVING BEEN IN BUSINESS FOR SO THERE'S TWO THINGS AWARDING THIS CONTRACT TO THEM. THERE'S A RESOLUTION THAT IS WAIVING THE IRREGULARITIES. PART OF THE REASON WE'RE BRINGING THAT TO COUNCIL TO DO THAT IS LEGAL FEELS IT IS MORE ROBUST IF WE HAVE A COUNCIL ACTION ON THAT THAN JUST A STAFF ACTION IN CASE THERE WERE ANY CHALLENGE. >> Mayor Guajardo: THANK YOU. COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. THANK YOU, JEFF FOR TAKING ALL OF THESE ITEMS INTO CONSIDERATION AND HELPING US TO COME TO THIS POINT. WITH THAT, I WOULD LIKE TO MAKE A MOTION TO APPROVE. >> SECOND. >> Mayor Guajardo: GREAT. WE HAVE A MOTION. WE HAVE A SECOND. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE PUBLIC COMMENT ON ITEM NO. 27? OKAY. THERE BEING NO ONE, WE'LL CLOSE PUBLIC COMMENT. WE HAVE A MOTION AND A SECOND. ANY FURTHER DISCUSSION? MR. HERNANDEZ. >> Hernandez: I WANT TO MAKE SURE THIS IS A MOTION AND A SECOND FOR BOTH OF THOSE ITEMS, THE RESOLUTION AND THE AWARD, THE CONTRACT AWARD. DID YOU UNDERSTAND IT AS THAT WAY REBECCA? >> Edmonds: WELL, IT IS ONE ITEM. >> Hernandez: I SEE A RESOLUTION HERE. THAT'S THE ONLY THING WE NEED TO DO? >> Edmonds: YES. >> Hernandez: YOU MENTIONED TWO SEPARATE THINGS. >> Edmonds: WE DON'T ALWAYS HAVE A RESOLUTION LIKE THAT AS PART OF A CONTRACT AWARD. >> Hernandez: ALL RIGHT. THANK YOU. >> Mayor Guajardo: PLEASE SUBMIT YOUR -- SORRY. MR. CANTU. >> Cantu: ONE QUESTION. THIS IS WHAT WE TALKED ABOUT EARLIER ABOUT THE SMELL ON GREENWOOD, THAT THIS IS GOING TO BE TAKEN CARE OF? >> YES, SIR. WESLEY, DIRECTOR OF WATER INFRASTRUCTURE. YES. IT'S GOING FROM ANAEROBIC TO AEROBIC. I SPOKE TO THOSE WHO DESIGNED THIS AND THEY INFORMED ME THAT WE ARE GOING TO TRY TO SWITCH OVER TO THE AEROBIC PROCESS A YEAR INTO THE PROJECT SO IT WON'T BE THE FULL YEAR DURATION. >> Cantu: COUNCILMAN SCOTT WANTS YOU TO GUARANTEE IT. IS IT GUARANTEED IT WON'T SMELL NO MORE? >> CAN'T GUARANTEE IT. >> Cantu: $102 MILLION. >> Mayor Guajardo: COUNCILWOMAN VAUGHN. >> Vaughn: IS THIS UNDER THE EPA CONSENT DECREE, THIS COST? >> Zanoni: LET ME HAVE WES ANSWER THAT. >> ALL WASTEWATER ITEMS WE DEAL WITH ARE SUBJECT TO THE CONSENT DECREE. THIS PLANT IS SUBJECT TO CONSENT DECREE. IF WE VIOLATE OUR PERMIT IT'S $1500 PER DAY PER VIOLATION PER OCCURRENCE. THOSE CAN ADD UP VERY QUICKLY. SO -- >> Vaughn: THE REASON I ASK IS I WOULD LIKE, BECAUSE THIS CONSENT DECREE ORDER HAS BEEN THERE A LONG TIME. CAN WE GET A LIST OF WHAT WE HAVE DONE TOWARDS THAT? IT WAS $750 MILLION AND WE NEED TO KNOW WHERE WE'RE AT. >> Zanoni: GOOD POINT. WE DO HAVE THAT AND SHOWED IT EIGHT OR NINE MONTHS AGO. WE'LL BRING IT BACK. >> Vaughn: I WASN'T HERE EIGHT OR NINE MONTHS AGO. >> Zanoni: WE'LL BRING IT BACK. WE'RE ENTERING YEAR THREE OR TWO? >> NO. WE'RE ENTERING YEAR FOUR. >> Zanoni: WE HAVE THREE YEARS OF COMPLETED WORK. >> Vaughn: DO YOU HAVE ANY IDEA OF THE ESTIMATE WE HAVE ALREADY DONE? >> Zanoni: IN TERMS OF MONEY? >> Vaughn: YEAH. >> SO YOU WOULD HAVE TO GO BACK AGAIN. WE WILL HAVE TO BREAK OUT THOSE ITEMS THAT ARE SPECIFICALLY CALLED OUT BY THE CONSENT DECREE. IT'S GOING TO BE A LITTLE BIT OF AN EFFORT FOR US TO DO THAT BUT WE CAN GET IT. >> Vaughn: THANK YOU. >> Mayor Guajardo: GOOD REQUEST. THANK YOU. PLEASE SUBMIT YOUR VOTE. I THINK WE'RE DONE. THE MOTION CARRIES. THANK YOU, WES. ITEM NO. 28 IS A MOTION AUTHORIZING AN IDIQ CONSTRUCTION CONTRACTS WITH JE CONSTRUCTION SERVICES, ANDERSON COLUMBIA COMPANY AND TEX MIX PAVING, ALL FIRMS LOCATED IN CORPUS CHRISTI, TEXAS IN AN AMOUNT UP TO $18 MILLION EACH. WE HAVE A MOTION AND WE HAVE A SECOND. I'M GOING TO OPEN PUBLIC COMMENT. IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO MAKE COMMENT ON ITEM NO. 28? THERE BEING NO ONE, WE'LL CLOSE PUBLIC COMMENT. ANY FURTHER DISCUSSION? MR. SCOTT. >> Scott: JUST ONE. BIG DEAL. YOU GUYS ARE DOING GREAT WORK. YOU'RE EXCEPTIONAL AND IMPRESSIVE. YOU AND YOUR TEAM BRING GREAT PRIDE TO THE PROGRAM AND I'M SO APPRECIATIVE OF ALL YOU DO. >> Mayor Guajardo: THANK YOU, MR. SCOTT. WE'LL ECHO THAT. THIS HAS BEEN A WONDERFUL PROGRAM AND WE ALSO APPRECIATE -- I'M SORRY, THE RPP IS A WONDERFUL PROGRAM BUT WE APPRECIATE ALL THE UPDATES ON IT AND THE PROCESS HERE, THE IDIQ PROCESS, WHICH OBVIOUSLY EXPEDITES. THANK YOU. PLEASE SUBMIT YOUR VOTE. THE MOTION CARRIES. OUR LAST ITEM OF THE DAY IS ITEM NO. 3, WHICH IS A GENERAL FUND BUDGET FINANCIAL FORECAST FOR THE FISCAL YEAR 2026 THAT BEGINS ON OCTOBER 1 OF THIS YEAR. >> GOOD AFTERNOON, MAYOR AND CITY COUNCIL. THANK YOU. I AM REALLY EXCITED TO BEGIN BUDGET DISCUSSIONS FOR FY '26 TODAY. AND I WILL DEFINITELY HONOR YOUR TIME. SO AS MR. ZANONI MENTIONED EARLIER, OUR FOCUS FOR THIS BRIEFING IS REALLY THE GENERAL FUND BUT I WANT TO JUST START THE PRESENTATION WITH AN OVERVIEW OF OUR BUDGET PROCESS. I WON'T READ ALL OF THIS BUT IT'S A NICE GRAPHIC THAT DEMONSTRATES THAT OUR BUDGET PROCESS REALLY IS A YEAR-LONG PROCESS AND WE'RE CONSTANTLY MONITORING HOW WE'RE PERFORMING ON OUR CURRENT BUDGET AND LOOKING FORWARD TO THE NEXT YEAR AND BEYOND. THE NEXT TWO SLIDES LOOK AT FOUR OF OUR MAIN FUND TYPES. I KNOW THERE'S BEEN A LOT OF CONVERSATION ABOUT THE GENERAL OPERATING BUDGET VERSUS WATER FUND VERSUS STREET FUND. THIS JUST HIGHLIGHTS THE DIFFERENT REVENUE SOURCES THAT COME INTO THESE FOUR FUND TYPES. I WON'T READ THIS IN DETAIL. BUT THE NEXT SLIDE GOES A LITTLE BIT FURTHER BY EXPLAINING WHAT TYPES OF EXPENSES CAN BE PAID OUT OF THESE FUNDS. SO THE GENERAL FUND, WHICH IS WHAT WE'RE TALKING ABOUT TODAY, REALLY FOCUSES ON OUR DAY-TO-DAY OPERATIONS. WE'LL BE REVIEWING OUR FORECAST AND ASSUMPTIONS FOR REVENUES IN THE GENERAL FUND. OUR EXPENSE ASSUMPTIONS, AND THEN A LOOK AT OUR FUND BALANCE IN THE GENERAL FUND. LASTLY, WE'LL LOOK FORWARD AT WHAT'S NEXT. THIS IS A QUICK REMINDER. YOU HAVE SEEN THIS CHART BEFORE, THIS PIE CHART. WE REVIEWED THIS WHEN WE ADOPTED THE FY '25 BUDGET AND IT SHOWS OUR REVENUE SOURCES. YOU CAN SEE THAT PROPERTY TAX REPRESENTS ABOUT 30% OF OUR REVENUES. AND THEN WE HAVE SALES TAX AT 21%. INDUSTRIAL DISTRICT AND OTHER REVENUES AT ABOUT 8%. THE EXPENSES THAT YOU SEE HERE, POLICE AND FIRE, PUBLIC SAFETY DEPARTMENTS, RECEIVE ALMOST HALF OF THAT FUNDING. THEN WE HAVE 13% SENT TO STREETS AND 10% SOLID WASTE. 7% TO PARKS AND REC. SO NEXT LET'S LOOK AT OUR REVENUES. SO AS I MENTIONED, PROPERTY TAX MAKES UP 30% OF OUR GENERAL FUND REVENUES. SO JUST A QUICK REMINDER, WE DID LOWER THE TAX RATE AND WE DID INCREASE THE HOMESTEAD EXEMPTION. WE DOUBLED IT FROM 10% TO 20%. AND WE INCREASED THE OVER 65/DISABLED EXEMPTION. THOSE CHANGES THAT TOOK EFFECT IN FY '25 BUDGET RESULTED IN APPROXIMATELY $12 MILLION LESS IN PROPERTY TAX REVENUE GOING FORWARD. WE ARE JUST LOOKING HERE AT THE TIMELINE FOR PROPERTY VALUATION. THE NUECES COUNTY APPRAISAL DISTRICT WILL VALUE PROPERTIES EFFECTIVE JANUARY 1. WE'RE ACTUALLY EXPECTING TO RECEIVE PRELIMINARY VALUES TOMORROW FROM THE APPRAISAL DISTRICT. SO THAT INFORMATION WILL CHANGE OR COULD POTENTIALLY CHANGE SOME OF THE ASSUMPTIONS IN THIS FORECAST. AS WE MOVE THROUGH THE BUDGET DEVELOPMENT PROCESS, WE GET UPDATED INFORMATION PERIODICALLY AND THEN CERTIFIED VALUES ARE DUE TO US ON JULY 25th. WHICH, AS YOU KNOW, IS ONLY A FEW DAYS PRIOR TO THE PROPOSED BUDGET. THERE ARE TWO TYPES OF PROPERTIES, WHEN WE'RE TALKING ABOUT THE REVENUE FORECAST THAT WE LOOK AT EXISTING VALUES AND WE LOOK AT NEW VALUES. SO THE NO-NEW-REVENUE RATE IS A TAX RATE THAT LOOKS AT EXISTING PROPERTIES AND IT EFFECTIVELY PRODUCES THE SAME AMOUNT OF REVENUE AS THE PREVIOUS YEAR. NEW VALUES ARE NOT CONSIDERED WHEN CALCULATING THAT RATE AND SO WE WANT TO KNOW WHAT THAT AMOUNTS TO EACH YEAR AS A SEPARATE FIGURE. WE ARE ABLE TO ADOPT A TAX RATE THAT IS 3.5% HIGHER THAN THE NO-NEW-REVENUE RATE, AND THAT IS CALLED THE VOTER APPROVAL RATE. SO RIGHT NOW OUR PROPERTY TAX REVENUE ASSUMPTIONS ARE THAT WE'LL HAVE .5% GROWTH ON EXISTING PROPERTY VALUES. AND 2% GROWTH DUE TO NEW PROPERTY VALUES. SO OVERALL IT WOULD BE A 2.5% GROWTH IN REVENUE COMPARED TO FY '25. THE GROWTH THAT WE'VE SEEN IN NEW VALUE, WHICH IS AVERAGED $641 MILLION IN THE LAST FIVE YEARS, THAT HAS BEEN OFFSET BY THOSE INCREASED EXEMPTIONS AND WE EXPECT SOME SIGNIFICANT PROPERTIES FOR '25 TO BE RECLASSIFIED FROM TAXABLE TO TAX EXEMPT. AND THEN WE ALSO HAVE THE PURCHASE OF TWO POWER PLANTS BY CPS, WHICH TAKES PROPERTIES FROM TAXABLE TO TAX EXEMPT AND COULD IMPACT US SIGNIFICANTLY. SO THIS CHART, YOU CAN SEE A LEVELING OF REVENUE GROWTH IN M&O. M&O STANDS FOR MAINTENANCE AND OPERATIONS. THAT'S THE PORTION OF PROPERTY TAX THAT COMES FROM THE GENERAL FUND. IT IS THE MAINTENANCE AND OPERATIONS OF THE CITY. YOU CAN SEE OUR ESTIMATE OF '25 IS 1% GROWTH. WE ARE FORECASTING IN FY '26, 2.5% GROWTH. THIS SLIDE IS A NICE PICTURE THAT SHOWS THE CHANGE IN OUR PROPERTY TAX RATE OVER THE LAST TEN YEARS. AND AS YOU KNOW THIS CITY WAS ABLE TO INCREASE THAT TAX RATE UP TO 6 CENTS DEDICATED TO THE RESIDENTIAL STREET RECONSTRUCTION FUND. AND IT WAS TO BE IMPLEMENTED GRADUALLY OVER TIME. SO THE CITY IMPLEMENTED THE FIRST TWO CENTS OF THAT IN FY '19. THE SECOND IN 2020. WE DEDICATE 4 CENTS OF THE TAX RATE TO RESIDENTIAL STREET RECONSTRUCTION . THE OTHER 2 CENTS HAS NOT BEEN ADDED AT THIS TIME. FOR FY '25 WE ADOPTED A FLAT TAX RATE AND THAT TAX RATE, IF YOU LOOK AT THIS CHART, IS ACTUALLY LOWER THAN WHAT THE TOTAL TAX RATE WAS PRIOR TO ADDING THOSE 4 CENTS FOR STREETS. IN '25, WE WOULD HAVE BEEN ABLE TO ADOPT A TAX RATE UP TO .644212 CENTS, AND THAT IS A COMBINATION OF THAT VOTER APPROVAL RATE PLUS OUR UNUSED INCREMENT. THE UNUSED INCREMENT IN THE TAX RATE, JUST VERY QUICKLY, IT'S THE DIFFERENCE BETWEEN THE ACTUAL RATE AND WHAT IT COULD HAVE BEEN WITHOUT VOTER APPROVAL FOR THE LAST THREE YEARS. SO RIGHT NOW I'M NOT SURE WHAT THAT WOULD BE FOR FY '26 BUT THERE WILL BE A PORTION THAT WE COULD ADD TO THE TAX RATE FROM THAT. THIS FORECAST ASSUMES THAT WE WOULD NOT INCREASE THE TAX RATE. PAYMENT IN LIEU OF TAX. LAST YEAR IN FY '24 WE DID NEGOTIATE THE INDUSTRIAL DISTRICT AGREEMENTS AND SO WE WILL SEE AN INCREASE IN THIS REVENUE DUE TO THAT RENEGOTIATION. RIGHT NOW IT'S $35.7 MILLION IS OUR ESTIMATE. AND 90% OF THAT GOES TO THE GENERAL FUND. SALES TAX, THIS REPRESENTS 21% OF OUR REVENUES IN THE GENERAL FUND. IF YOU SEE THOSE LAST THREE YEARS, YOU CAN REALLY SEE THE GROWTH IN SALES TAX FLATTENING. SO CURRENTLY FOR '26 WE ARE FORECASTING NO GROWTH IN SALES TAX. ON THE EXPENSE SIDE, I JUST HAVE ONE SLIDE FOR EXPENSES. THERE'S A FEW ASSUMPTIONS THAT WE REALLY NEEDED TO BUILD INTO THIS BUDGET THAT WE ALREADY KNOW ABOUT. AND SO THE FIRST THING IS WE DID NOT INCLUDE ANY ADDITIONAL TRANSFERS TO OUR STREETS FUNDS. WE STILL WILL TRANSFER THE AMOUNT REQUIRED. BUT NOTHING ADDITIONAL WOULD BE TRANSFERRED FROM THE GENERAL FUND. HOWEVER, FOR FY '26 WE DO THE NEW TYPE B FUNDING, WHICH IS ABOUT $4.5 MILLION A YEAR THAT WOULD GO TO STREETS. AND WE ALSO HAVE THE $35 MILLION IN THE VOTER-APPROVED BOND THAT'S GOING TO STREETS. WE HAVE COLLECTIVE BARGAINING AGREEMENT FOR OUR POLICE DEPARTMENT. THAT IS INCLUDED AT ABOUT $900,000. THEY ARE IN YEAR THREE OF THEIR FOUR-YEAR AGREEMENT. THEN WE HAVE THE COLLECTIVE BARGAINING AGREEMENT FOR THE FIRE DEPARTMENT. THEY'RE IN YEAR TWO OF FOUR, AND THAT'S $1.5 MILLION. WE'VE ALSO INCLUDED AN ASSUMPTION FOR PERFORMANCE PAY FOR OUR STAFF AT AN AVERAGE OF 3%. AND IT'S $2 MILLION IN THE GENERAL FUND. WE WILL HAVE TO INCREASE OUR HEALTH BENEFIT CONTRIBUTIONS BECAUSE IN FY '25 WE DREW DOWN THE FUND BALANCE IN OUR HEALTH BENEFITS FUNDS AND WE'LL HAVE TO INCREASE THOSE CONTRIBUTIONS TO RIGHT SIZE THAT AMOUNT CONTRIBUTED. THAT'S $13 MILLION. AND THEN WE'VE ADDED $1.5 MILLION AS A PLACEHOLDER CURRENTLY FOR INCREASES TO COMMODITIES AND EQUIPMENT OF ABOUT 10%. AS WE GO THROUGH THE BUDGET PROCESS, WE'LL BE MEETING WITH DEPARTMENTS AND OTHER POTENTIAL MANDATED INCREASES MAY COME UP. NOW ON THIS SLIDE YOU CAN SEE THE PLANNED AND INTENTIONAL DRAW DOWN OF OUR FUND BALANCE IN THE GENERAL FUND. WE ARE ABLE TO USE THAT FUND BALANCE FOR ONE-TIME EXPENSES AND THOSE FUNDS WERE UTILIZED FOR STREETS, FOR PUBLIC SAFETY EQUIPMENT, AND FOR QUALITY OF LIFE AMENITIES. BUT FOR FY '25 THE BUDGETED IS $67.5 MILLION AND THAT LEAVES $1.4 MILLION OVER THE RESERVE REQUIREMENT. SO HERE'S OUR FORECAST -- AND I KNOW YOU HAVE SEEN THESE NUMBERS. WHAT I'D LIKE TO DRAW YOUR ATTENTION TO IS FOR REVENUES, WHEN YOU COMPARE TO FY '24 ACTUALS AND OUR FY '25 ESTIMATE, WE DO EXPECT AN OVERALL INCREASE IN REVENUES IN THE GENERAL FUND AND THAT IS PRIMARILY DUE TO THE INDUSTRIAL DISTRICT INCREASES AND THE SLIGHT INCREASE IN PROPERTY TAX REVENUE. ON THE EXPENSE SIDE, WHEN YOU COMPARE TO THE PRIOR YEAR, IN FY '26 WE ARE FORECASTING A SLIGHT DECREASE IN EXPENSES. THAT'S BECAUSE WE'RE NO LONGER GOING TO MAKE THE ADDITIONAL TRANSFER TO STREET FUNDS. IN FY '25 , THAT WAS ABOUT $9.5 MILLION AND SO THAT'S OFFSET BY INCREASES IN OTHER AREAS. THE INCREASES THAT WE JUST DISCUSSED. SO ULTIMATELY, THIS SHOWS YOU HOW WE ARRIVE AT THAT GAP BETWEEN OUR REVENUES AND EXPENSES OF $7 MILLION. WE HAVE A BEGINNING BALANCE FORECASTED AS $73.5 MILLION. WHEN YOU ADD THE REVENUE FORECAST OF 341.5, THAT LEAVES US WITH $415 MILLION TOTAL AVAILABLE. WITH OUR EXPENSES AT $351.7 MILLION, WE WOULD HAVE AN ENDING BALANCE OF $63.3 MILLION. IF YOU TAKE 20% OF OUR TOTAL EXPENSES, OUR REQUIRED RESERVE WOULD BE $70.3 MILLION AND SO THE DIFFERENCE THERE IS THE $7 MILLION. SO IN THE BUDGET DEPARTMENT, WE STARTED LOOKING AT THIS FORECAST BACK IN JANUARY/FEBRUARY AND WE'VE BEEN REFINING AND UPDATING. ONE OF THE MAIN THINGS THAT IS A BEST PRACTICE AND THAT WE ABSOLUTELY NEED TO DO IS COMMUNICATE EARLY AND OFTEN WITH OUR LEADERSHIP. SO WE BEGAN HAVING THESE DISCUSSIONS WITH OUR DEPARTMENT HEADS EARLY ON IN THE YEAR. EVERY MONTH WE ALREADY MEET WITH DEPARTMENTS TO REVIEW THEIR BUDGET TO ACTUAL VARIANCES AND TO TALK ABOUT THINGS THAT MAY BE CHANGING THROUGHOUT THE YEAR. WE MEET WITH THE CITY MANAGER AND HIS LEADERSHIP TEAM MONTHLY ON THE MONTH FINANCIAL REPORTS. AND THEN WE PROVIDE QUARTERLY UPDATES TO YOU, OUR CITY COUNCIL. IN FEBRUARY, WE ASKED OUR DEPARTMENT HEADS TO REALLY START LOOKING CRITICALLY AT THEIR OPERATIONS, TO LOOK FOR EFFICIENCIES OR OPPORTUNITIES FOR SAVINGS. AND THEN IN MARCH WE TOOK IT A STEP FURTHER. WE ASKED DEPARTMENTS IN THE GENERAL FUND AND INTERNAL SERVICE FUNDS, LET'S LOOK FOR 10% OF YOUR FY '25 BUDGET. THEN WE SAID THREE QUESTIONS. ARE WE CHARGING APPROPRIATELY FOR THE SERVICES WE PROVIDE? ARE THERE OPPORTUNITIES TO IMPROVE OUR FIND EFFICIENCIES IN OUR OPERATIONS THAT RESULT IN COST SAVINGS. ARE THERE CORE SERVICES THAT WE SHOULD LOOK AT REDUCING -- NOT CORE SERVICES -- THAT WE SHOULD LOOK AT REDUCING. WE'RE ALSO KEEPING A CLOSE WATCH ON STATE LEGISLATION. AS YOU KNOW THAT'S A VERY BUSY TIME OF YEAR. HERE'S A FEW BILLS THAT WE'RE KEEPING A CLOSE EYE ON. AND THEN FEDERAL POLICY CAN ALSO AFFECT HOW WE OPERATE IN THE CITY. SO TODAY IS OUR GENERAL FUND FINANCIAL FORECAST FINANCIAL BRIEFING. THIS IS THE FIRST STEP IN DISCUSSIONS WITH YOU, OUR CITY COUNCIL. REALLY HOPE THAT THIS IS INFORMATIONAL, FOUNDATIONAL FOR CONVERSATIONS THAT WE'LL HAVE NEXT WEEK ON BUDGET GOAL SETTING. AFTER THAT GOAL SETTING, WE'LL CONTINUE TO HAVE CONVERSATIONS ABOUT THE BUDGET THROUGH THE MONTH OF JULY. WE'LL MEET WITH EVERY DEPARTMENT. WE'LL MEET WITH THE CITY MANAGER. EVERY DEPARTMENT WILL MEET WITH THE CITY MANAGER AND OUR EXECUTIVE LEADERSHIP TEAM TO PRESENT TO YOU A BALANCED BUDGET AT THE END OF JULY. THANK YOU FOR YOUR TIME AND I'M AVAILABLE FOR ANY QUESTIONS. >> Mayor Guajardo: THANK YOU SO MUCH. COUNCILMAN SCOTT. >> Scott: THANK YOU, MAYOR. COULD YOU GUYS REACH OUT AND SIT DOWN WITH ME AND GO THROUGH THIS AGAIN? I HAVE TO HEAR IT SEVERAL TIMES. I TELL PEOPLE LITTLE WORDS, SHORT SENTENCES WORK WELL WITH MARK. I DO WANT TO GO OVER PAGE 22 REALLY QUICKLY. PROPERTY TAXES WERE $103 MILLION. YOU ESTIMATE -- THEY WENT DOWN THIS YEAR BECAUSE OF THE THINGS YOU SAID, THE OVER 65 AND THE -- WHAT WAS THE OTHER ONE? >> THE HOMESTEAD EXEMPTION. >> Scott: THAT'S WHY IT WENT DOWN TO 102. BUT WE'RE GOING TO BUDGET BASED ON IT GOING BACK TO 105, WHICH REPRESENTS WHAT PERCENTAGE INCREASE? >> IT'S A 2.5% INCREASE AND THE MAJORITY OF THAT WOULD BE DUE TO NEW VALUES. >> Scott: I APPRECIATE THAT. IT KIND OF REPRESENTS THE NEED TO GROW. THE INDUSTRIAL DISTRICT WAS 20 AND THEN IT WENT TO 24 BECAUSE OF SOME GROWTH? AND THEN IT GOES TO 32 BECAUSE OF THE NEW AGREEMENT? >> CORRECT. WE DID HAVE SOME GROWTH IN FY '25 BUT PART OF THAT WAS REDUCTION REVENUES IN FY '24 DUE TO PROTESTED VALUES. IN FY '24 WHEN YOU'RE COMPARING TO '25, THERE WERE SOME REFUNDS THAT TOOK PLACE. >> Scott: '24 WAS MORE WHAT THE NORM WAS? >> THE ACTUALS FOR '24 WAS LOWER THAN NORMAL. >> Scott: '25 WAS THE NORMAL AND '26 WAS THANKS TO THE GOOD WORK THAT YOU ALL RENEGOTIATED THE INDUSTRIAL AGREEMENT. GREAT JOB. GOOD WORK. SALES TAX, 72 AND THEN IT BASICALLY IS STAGNANT. AND IT BASICALLY IS STAGNANT, RIGHT? WHICH IS INDICATIVE OF OUR NEED TO GROW OUR ECONOMY. OKAY. THAT'S WHAT I NEED -- IF YOU DON'T MIND, SEND ME A TEXT OR E-MAIL. GIVE ME AN HOUR JUST TO HEAR THIS ALL AGAIN. THANK YOU, MAYOR. WELL DONE. LOOKING FORWARD TO WORKING WITH Y'ALL. >> Mayor Guajardo: COUNCILMAN HERNANDEZ. >> Hernandez: OKAY. UNDER -- I GUESS PAGE 23 YOU HAVE GENERAL FUND FORECAST FOR '26 EXPENSES. YOU DID NOT INCLUDE DEBT SERVICE. IS THERE A REASON FOR THAT? >> ANY TRANSFERS FOR DEBT SERVICE -- ACTUALLY I'M NOT SURE THAT WE HAVE TRANSFERS FOR DEBT SERVICE IN THE GENERAL FUND. DEBT SERVICE IS IN THE DEBT SERVICE FUND AND THE PORTION OF THE TAX RATE FOR I&S GOES DIRECTLY INTO THAT. >> Hernandez: WE STILL GOT TO PAY FOR IT, RATE? YOU SHOULD INCLUDE SOMETHING OF IT. I BELIEVE LAST YEAR IT WENT FROM $55 MILLION TO THIS YEAR $70 MILLION THAT WAS TRANSFERRED OVER TO THE DEBT SERVICE FUND FROM THE GENERAL FUND. IS THAT -- >> I WOULD HAVE TO CHECK. THE I&S PORTION OF OUR TAX RATE, IT STANDS FOR INTEREST AND SINKING. IT GOES DIRECTLY INTO OUR GENERAL OBLIGATION DEBT FUND AND THAT DEBT IS PAID OUT OF THE DEBT SERVICE FUND. >> Hernandez: RIGHT. >> SO THE REVENUE FOR PROPERTY TAX HERE -- >> Hernandez: HOW MUCH ARE WE PAYING? >> I'M NOT PREPARED WITH THAT NUMBER. >> Zanoni: WE'LL HAVE THAT NEXT THURSDAY, COUNCILMAN. >> Hernandez: OKAY. IT'S SOMETHING I TEXTED YOU. ANY TIME YOU DO A GENERAL OBLIGATION BOND YOU HAVE TO PAY IT BACK. IT'S NOT LIKE IT JUST DISAPPEARS. SO WE GOT TO PAY FOR IT. IT'S GOT TO COME FROM OUR TAX BASE. >> Zanoni: RIGHT. THIS PRESENTATION TODAY IS JUST ON THE OPERATING SIDE, AS WE SAID IN THE TEXT. NEXT THURSDAY WE'LL INCLUDE DEBT IN THAT GOAL-SETTING SESSION. >> Hernandez: OKAY. WELL, I MEAN, THIS IS A PUBLIC, YOU KNOW, I WANT TO MAKE SURE THAT WE SEE THE COMPLETE PICTURE HERE. OPERATING EXPENSES, O&M, AND INTEREST AND SINKING. >> Zanoni: THAT WILL BE NEXT THURSDAY. TODAY IS JUST ON THE OPERATING SIDE, JUST THE GENERAL FUND. >> Hernandez: I HEAR YOU BUT I'M BRINGING IT UP BECAUSE IT MATTERS. >> Zanoni: WE AGREE TO THAT. THAT'S WHY NEXT THURSDAY WE'LL HAVE IT FOR YOU. >> Hernandez: THAT ALSO BRINGS ME TO HB 19. IF YOU LOOK AT THE TEXT OF THE HB 19, WHICH YOU DIDN'T REALLY TALK ABOUT, THERE'S A LIMITATION OF HOW MUCH DEBT YOU CAN HAVE AS 20% OF YOUR PROPERTY TAXES THAT ARE PAID FOR FROM IT. >> CORRECT. >> Hernandez: I MEAN, I WOULD LIKE TO SEE IN OUR MEETING NEXT WEEK OR WHEN WE HAVE OUR BUDGET MEETING -- >> Zanoni: NEXT WEEK. >> Hernandez: HOW THAT AFFECTS US. >> [OFF MIC] >> Zanoni: IS IT NEXT WEEK OR THE WEEK AFTER? >> IT'S MAY 8th CURRENTLY THAT WE'RE PLANNING TO HAVE OUR BUDGET GOAL-SETTING WORKSHOP. >> Zanoni: NEXT WEEK, RIGHT? NEXT THURSDAY. NEXT THURSDAY WE'RE HAVING THE BUDGET WORKSHOP. NEXT THURSDAY. WE HAVE A COUNCIL MEETING NEXT TUESDAY. >> Hernandez: I DON'T KNOW IF HB 19 WILL PASS BUT IT IS SOMETHING WE HAVE TO TAKE INTO ACCOUNT RIGHT? HONESTLY, I DON'T HAVE A PROBLEM WITH THAT. I THINK THERE SHOULD BE SOME LIMITATIONS AS TO HOW MUCH YOU PUT YOURSELF IN DEBT. HONESTLY, I WANTED TO DO THIS IN AN ORDINANCE FASHION BUT IF THE STATE'S GOING TO DO IT, THAT'S GREAT. BUT WE ULTIMATELY HAVE TO BE AWARE OF THAT. BUT I'D LIKE TO SEE WHAT THAT PROJECTION IS FOR HOW MUCH IS GOING TO TRANSFER INTO THE DEBT SERVICE FUND. >> YES, SIR. >> Hernandez: FOR NEXT YEAR. OKAY. AND THAT'S ALL THE QUESTIONS I HAVE FOR NOW. THANK YOU. >> Mayor Guajardo: COUNCILMAN ROY. >> Roy: GREAT PRESENTATION. I'M JUST -- I CAN'T BELIEVE IT'S THAT TIME OF YEAR AGAIN. BUT WE'RE HERE. I KNOW YOU'VE BEEN WORKING ON IT SINCE JANUARY. CAN YOU REFRESH MY MEMORY? WE'RE SITTING AT $7 MILLION IS WHAT YOU PROJECTED? >> YES. >> Roy: WHERE WERE WE AT LAST YEAR. I DON'T REMEMBER. >> Zanoni: IT DEPENDS ON HOW YOU LOOK AT IT BUT WE WERE TRYING TO OVERCOME A $24 MILLION REVENUE LOSS LAST YEAR. THAT WAS FROM THE IMPACT OF THE PROPERTY TAX, DOUBLING OF THE HOMESTEAD EXEMPTION AND THE LOSS OF THE STREET USER FEE. THOSE REVENUE SOURCES WERE $25 MILLION AND WE WERE ABLE TO OVERCOME THAT LAST YEAR. >> Roy: OKAY. SO YOU'RE SAYING -- I UNDERSTAND THAT. RIGHT NOW WE'RE SITTING AT 7. >> Zanoni: 7, YEAH. >> Roy: THANK YOU. THAT'S ALL I HAVE. >> Mayor Guajardo: COUNCILWOMAN PAXSON. >> Paxson: THANK YOU, MAYOR. THANK YOU FOR YOUR PRESENTATION AND THE DETAILS THAT YOU PROVIDED US. THEY'RE VERY HELPFUL TO GIVE US A SNAPSHOT OF WHERE WE ARE RIGHT NOW. ONE OF THE THINGS YOU MENTIONED WAS THOSE PRELIMINARY DISCUSSIONS WITH DEPARTMENT HEADS EVALUATING EFFICIENCIES AND THINGS LIKE THAT. MY CURIOSITY WAS WHAT ARE YOU FINDING AT THIS POINT? I KNOW TIMES CHANGE. I KNOW WE HAVE TO BE REALISTIC WITH OUR OUTPUT IN WHAT WE ASSOCIATE COSTS WITH THAT. BUT MY CONCERN IS, YOU KNOW, THE OVERALL ECONOMIC CLIMATE RIGHT NOW FOR THE COMMUNITY CAN BE PRETTY BURDENSOME. SO I'M CURIOUS WHAT YOUR ASSESSMENT IS OF THAT. ARE WE SEEING A LOT OF THOSE COSTS AND THINGS GOING UP IN THE DEPARTMENTS? I KNOW CERTAIN RATES AND THINGS LIKE THAT HAVE TO COME BEFORE A COUNCIL ITEM BUT I KNOW SOME SMALLER THINGS PROBABLY DON'T. WHAT ARE YOU SEEING THERE? WHAT KIND OF IMPACT ARE YOU SEEING? >> WHAT I CAN TELL YOU IS THAT DEPARTMENTS ARE VERY DILIGENT IN MANAGING THEIR BUDGETS. THEY ENGAGE WITH US MONTHLY AND THEY ARE MANAGING THEIR BUDGETS WELL AND WE ARE STILL OPERATING AND PROVIDING EXCELLENT SERVICE TO OUR COMMUNITY. THEY ARE WORKING, EVEN AS WE SPEAK, TO CONTINUE TO REFINE WHAT THEY'LL NEED IN FY '26 AND ANY OPPORTUNITIES FOR CHANGE IN OPERATIONS. AND SO WE'LL BE ABLE TO BRING MORE INFORMATION TO YOU ON SPECIFICS AT A LATER DATE. >> Zanoni: USING SOME NUMBERS -- SO EACH DEPARTMENT HAS AN ANNUAL BUDGET AND WE BREAK THAT DOWN TO A MONTHLY BUDGET. AND ALL DEPARTMENTS ARE WITHIN THEIR MONTHLY BUDGETED AMOUNTS. SO WE'RE IN MONTH SEVEN RIGHT NOW. AND WE'RE COMING INTO MONTH SEVEN BUT EVERY DEPARTMENT, ALL 29 ARE WITHIN BUDGET. EACH MONTH, OVER THE PAST FIVE, SIX MONTHS, WE HAVE REVIEWED THIS AND NOBODY HAS BEEN OVER THEIR MONTHLY AMOUNT OR YEAR TO DATE AMOUNT. IF PRICES ARE GOING UP, THEY KNOW TO BUY LESS OR THEY SWITCH TO ANOTHER PRODUCT THAT MAY BE WITHIN BUDGET. >> SO WHERE YOU SAID -- YOU ASKED DEPARTMENT HEADS IF THEY NEED TO INCREASE THEIR COSTS, ARE YOU KIND OF MANAGING OFFSETTING THAT BY ADJUSTING PURCHASES SO YOU'RE NOT SEEING THAT IMMEDIATE NEED? OR IS THIS SOMETHING THAT YOU'RE GOING TO CALCULATE IN FOR COST CHANGES FOR '26? >> I THINK IT'S A COMBINATION OF BOTH. WE CAN EITHER INCREASE OUR REVENUES, DECREASE OUR EXPENSES, OR A COMBINATION. FROM WHAT I'M SEEING FROM DEPARTMENTS IS WE'RE LOOKING AT BOTH. >> Zanoni: YEAH. BUT JUST TO PUT IT IN PERSPECTIVE, WELL IT SOUNDS LIKE MAYBE NOT A LARGE AMOUNT, GIVEN A $340 MILLION OVERALL BUDGET. JUST TAKE $5 MILLION. SO $5 MILLION IS THE TOTAL BUDGET FOR THE LIBRARY BUDGET. $5MILLION IS THE TOTAL BUDGET TODAY FOR ANIMAL CARE. $5MILLION IS THE TOTAL COST TO DELIVER ALL THE CODE COMPLIANCE SERVICES. IT'S A BIG ORDER. WE'RE GOING TO HAVE TO WORK HARD OVER THESE NEXT COUPLE OF MONTHS TO COME UP WITH THE SAVINGS. AT THIS POINT, BECAUSE WE DID A LOT OF REDUCING IN THE CURRENT-YEAR BUDGET, WHAT'S LEFT NOW IS BREAD AND BUTTER STUFF. STUFF THAT PEOPLE WILL BE HEAR COMPLAINING ABOUT, AS THEY DID LAST SUMMER. IT'S THINGS LIKE REDUCING LIBRARY HOURS. REDUCING CODE COMPLIANCE SERVICES. REDUCING AMENITIES AT OUR PARKS. IT'S GOING TO BE TOUGH. WE'RE GOING TO DO IT. THAT'S OUR JOB BUT WITH THE OFFSET OF SOME REVENUES, THAT WILL PROBABLY COVER A LITTLE BIT. BUT THE LION'S SHARE OF CLOSING THE GAP IS GOING TO COME FROM EXPENDITURE REDUCTIONS. >> Paxson: THAT WAS KIND OF WHAT I WAS GETTING AT. >> Zanoni: YEAH. WHAT WE LOOK AT ACROSS THE BOARD REDUCTIONS ARE NOT GOOD FOR AN OPERATION. THOSE DON'T WORK WELL SO WE'RE LOOKING AT SPECIFIC PROGRAMS THAT WE CAN NO LONGER DO. SO THAT WE'RE NOT IMPACTING QUALITY OF SERVICE OVERALL. SO OUR GOAL LAST YEAR IS THE SAME AS THIS YEAR, WHICH IS WE JUST SHRINK THE OPERATIONS SLIGHTLY BUT WHAT REMAINS WE STILL DO REAL WELL BECAUSE IT'S FUNDED APPROPRIATELY. THE ACROSS THE BOARD CUTS RESULT IN EVERYTHING NOT PERFORMING WELL BECAUSE YOU DON'T HAVE ENOUGH MONEY TO DO EVERYTHING. SO EVERYTHING IS DONE POORLY. OUR GOAL IS TO CUT OFF OR STOP DOING SOME PROGRAMMING, SOME PROGRAMS, SOME SERVICES. BUT DO THE REST REAL WELL. WE'LL WORK TO DEVELOP THE BUDGET OVER THE NEXT TWO, THREE MONTHS. AND ALL THE DEPARTMENTS GET INVOLVED. IT'S NOT ME AND AMY AND HEATHER DOING IT, IT'S HUNDREDS OF PEOPLE GET INVOLVED. AFTER SEVERAL MONTHS OF OUR WORK THEN WE PRESENT TO YOU ALL THE END OF JULY. THERE'S SIX MORE WEEKS OF DEBATE WITH THE COUNCIL AND THE COMMUNITY. THIS WILL BE -- THESE REDUCTIONS THAT WE'LL HAVE TO RECOMMEND ARE GOING TO BE MORE IMPACTFUL THAN THE CURRENT YEAR ONES. AND THE CHOICE TO SWAP FUNDS OUT FROM ONE PROJECT TO ANOTHER AND INTO STREETS DOESN'T EXIST ANYMORE BECAUSE WE EXHAUSTED THOSE IN THIS YEAR'S BUDGET. YEAH. >> Paxson: THAT WAS KIND OF JUST MY CURIOSITY THERE IS EVALUATING AT THIS POINT THE TEMPERATURE. I KNOW FOR MYSELF, THE LEAST WE CAN TRANSFER INCREASE COSTS AND FEES AND THINGS TO THE COMMUNITY -- I WAS TRYING TO SEE IF YOU HAD A TEMPERATURE GAUGE ON WHAT THAT'S LOOKING LIKE BUT I'M ENCOURAGED TO HEAR JUST CUTTING ON THOSE EXPENSES. THANK YOU AGAIN FOR YOUR PRESENTATION. >> THANK YOU. >> Mayor Guajardo: I THINK THAT'S ALL THE QUESTIONS AND COMMENTS. SO WE APPRECIATE IT AND WE LOOK FORWARD TO MOVING FORWARD AND HEARING YOUR RECOMMENDATIONS ON THE, YOU KNOW, WHERE IT IS WE CAN MAKE THE IMPACT THAT WE NEED TO MAKE. BUT I THINK WE'RE OPTIMISTIC, JUST FROM YEARS PAST AND MOVING THIS FORWARD AND BALANCING THE BUDGET AND MAKING CERTAIN WE DO OUR BEST TO BALANCE. >> Zanoni: RIGHT. WE HAVE ONE GOOD GOAL IN LOCAL GOVERNMENT AND THAT IS YOU NEED A BALANCED BUDGET. WE'LL HAVE A BALANCED BUDGET. AND I DID WANT TO THANK AMY. SHE DID A GREAT JOB PRESENTING, ESPECIALLY AFTER A LONG DAY. REAL CLEAR PRESENTATION. THIS WILL BE HER FIRST BUDGET AS DIRECTOR. GREAT JOB, AMY, LEADING YOUR TEAM AND LEADING US THROUGH THIS STEP ONE. YOU WILL SEE HER QUITE A BIT. >> Mayor Guajardo: GREAT CHALLENGE FOR YOU, $7 MILLION. WE'RE LOOKING FORWARD TO IT AND I THINK IT WILL BE ANOTHER SUCCESSFUL BUDGET. I MEAN, AGAIN, THAT'S WHAT THE BUDGET IS. YOU KNOW, IT'S FOR PETER TO BRING IT FORTH AND, YOU KNOW, FOR ALL OF US TO FIGURE OUT HOW BEST WE CAN BRING IT TO A BALANCED BUDGET WITH YOUR LEADERSHIP AND YOURS, AMY AND YOUR TEAM AS WELL. >> THANK YOU. >> Mayor Guajardo: THANK YOU. OKAY. THAT'S ALL YOU HAVE, RIGHT? OKAY. THERE BEING NO FURTHER BUSINESS, THIS MEETING IS FURTHER -- >> City Secretary: THERE'S ONE MORE E SESSION, MAYOR. >> Mayor Guajardo: YOU'RE RIGHT. THIS MEETING IS NOT ADJOURNED. WHICH SECTION? I THINK I MENTIONED ALL OF THEM AT LUNCH. >> City Secretary: YES, YOU DID. >> Mayor Guajardo: DO YOU NEED TO SAY IT AGAIN? >> City Secretary: WE'RE GOING TO E SESSION ON 32. >> Mayor Guajardo: NOT THE SECTION? >> City Secretary: GO AHEAD AND SAY IT, JUST TO BE ON THE SAFE SIDE. >> Mayor Guajardo: THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEM NO. 31 -- >> City Secretary: UNDER 551 -- I'M SORRY. 32. I APOLOGIZE. UNDER 32. >> Mayor Guajardo: I'M JUST GOING TO READ THE SAME 32 AND THEN THE SAME SECTIONS. SO THE COUNCIL IS GOING TO GO INTO EXECUTIVE SESSION ON ITEM NO. 32 PER TEXAS GOVERNMENT CODE 551.071 AND 551.072. WE WILL RETURN. [EXECUTIVE SESSION]