[CALL TO ORDER]
[00:02:11]
MEETING WHERE WE'LL BE TAKING ACTION TODAY, BUT A VISION OF TO SET FORTH WITH THE WAY THIS COUNCIL WANTS TO MOVE FORWARD WITH OUR -- SO BEFORE PUBLIC COMMENT, MR. HANNA, COULD YOU TELL US HOW OUR SCHEDULE IS EXPECTED TODAY?
>> MAYOR, I'M HAPPY TO DO SO. THE AGENDA FOR THE DAY IS ABOVE -- IT IS ON THE SCREEN RIGHT NOW.
WE'RE GOING TO GO THROUGH THE KIND OF LEADING AND GUIDING MANAGEMENT PHILOSOPHY AND PRINCIPLES. WE DO THIS EVERY YEAR.
THOUGH THERE IS NOT A LOT OF CHANGE, IT IS JUST AN OPPORTUNITY TO MAKE SURE THAT WE'RE REFLECTING THE WAIRS OF COUNCIL AS AN ORGANIZATION, AND THAT WE'RE MANAGING AND ADMINISTERING THE ORGANIZATION, THE CITY, ALONG THE VALUES AND PURPOSES THAT COUNCIL HAS DEFINED. WE'LL TALK ABOUT ORGANIZATIONAL DISCUSSIONS, THE BUDGET, TWO NEW PROGRAMS THAT WE WOULD LIKE COUNCIL TO CONSIDER AND SEE IF THERE IS INTEREST IN FUNDING THESE OR NOT. ONE IS A PHILOSOPHY SHIFT FOR MONETIZING TWO OF THE PARKING AREAS DOWNTOWN THAT WILL BE COMING ONLINE.
AND ALSO TRYING TO ENSURE THERE IS TURNOVER IN THOSE PARKING AREAS. ONE IS A VERY TIMELY AND NECESSARY DISCUSSION ON THE FIREMAN'S RELIEF AND RETIREMENT FUND. THIS IS A DISCUSSION THAT HAS BEEN IN THE WORKS NOW FOR REALLY SEVERAL YEARS. AND SO WE'RE AT A POINT WHERE WE NEED TO TALK ABOUT SOME OPPORTUNITIES.
LOOK AT CAPITAL IMPROVEMENTS. THERE IS A LIST OF THEM WE WOULD LIKE TO DISCUSS TO SEE WHERE COUNCIL'S TEMPERATURE IS AND THEN TALK ABOUT SOME OF THE LARGER COMMUNITY INITIATIVES THAT HAVE BEEN TAKING PLACE, THESE ARE UPDATES OF WHERE THESE ARE. THE LAST ITEM, THAT PROPERTY TAX EXEMPTION FOR DAYCARE.
LAST YEAR THERE WAS A STATUTE THAT STATE OF TEXAS AUTHORIZED LOCAL JURISDICTIONS TO POTENTIALLY ALMOST LIKE A HOMESTEAD HOMESTEAD EXEMPTION FOR DAYCARE CENTER. WE HAVE HAD ONE BUSINESS OWNER ASK THATTHAT THE CONSIDER THIS.
SO, THIS IS A DECISION FOR THE POLICYMAKERS.
THAT'S THE AGENDA WE HAVE ON DECK TODAY,
AT THIS TIME, WE WILL MOVE TO THE PUBLIC COMMENT PERIOD. THERE WILL BE NO VOTES OR ANY FORMAL ACTIONS TAKEN ON SUBJECTS PRESENTED DURING PUBLIC COMMENT. THE PUBLIC COMMENT PERIOD WILL ONLY ALLOW MEMBERS OF THE PUBLIC TO PRESENT IDEAS AND INFORMATION TO CITY OFFICIALS AND STAFF, AND THERE WILL BE A THREE- MINUTE LIMIT. WOULD ANYONE LIKE TO PARTICIPATE IN PUBLIC COMMENT TODAY? SEEING NO ONE, I'LL CLOSE THE PUBLIC COMMENT PERIOD.
AND NOW, MR. HANNA, WE'LL TURN THIS OVER TO YOU.
>> I HAD MY BIG MOMENT TO RUN THAT BEEPER AND I DIDN'T
[2. Core Purpose, Core Values, Strategic Priorities]
GET A CHANCE TO.ALL RIGHT. SO, AGAIN, STARTING TODAY, WITH OUR CORE PURPOSE, WE WORK TOGETHER TO BUILD AND MAINTAIN THE COMMUNITY AT THE HIGHEST QUALITY FOR FUTURE AND GENERATIONS, OUR CORE VALUES, THE ACRONYM RISE, RESPECT,
[00:05:02]
INTEGRITY, SERVICE ABOVE SELF AND EXCELLENCE IN ALL WE DO.I TOLD THE STORY BEFORE, I THINK IT IS NICE THAT THEY MIRROR -- THEY RINSE AND REPEAT THE AIR FORCE'S CORE VALUES, THAT WE DID NOT SET OUT THAT WAY TO DO IT, JUST TURNS OUT THAT'S HOW THE EXERCISE TURNED IT OUT.
SO, I THINK IT IS NEAT THAT WE CAN MODEL THAT.
OUR STRATEGIC GOALS, PRACTICE EFFECTIVE GOVERNANCE, SOUND FINANCIAL DISCIPLINE, HIGH QUALITY OF LIFE, MAINTAINED RELIABLE INFRASTRUCTURE, SERVICE, ENCOURAGE ECONOMIC GROWTH, FOSTER ENGAGED COMMUNITIES. THESE ITEMS KIND OF SERVE THE FOUNDATIONAL BACKGROUND OF HOW WE GO ABOUT AND DO GOVERNANCE IN THE CITY OF ABILENE.
THE COUNCIL PRIORITIES HAVE ALWAYS BEEN REALLY SINCE I FIRST GOT HERE WE HAD AN ANNUAL COUNCIL RETREAT, COLE AND SHANE, TWO MEMBERS WERE PART OF THAT, AND WE MAPPED OUT THE COUNCIL PRIORITIES, INFIELD DEVELOPMENT, DOWNTOWN REDEVELOPMENT, COST EFFECTIVE GOVERNANCE, UNDERSTANDING OUR DEFERRED MAINTENANCE AND HOW TO FUND IT AND STREET MAINTENANCE.
THESE ARE BIG ROCKS AND BIG LISTS.
WE HAVE BEEN WORKING ON THEM NOW FOR QUITE SOME TIME AND I THINK WE MADE GOOD PROGRESS. NOT TO BELABOR THESE POINTS, BUT IF COUNCIL IS INTERESTED IN CHANGING ANY OF THESE WE CAN HAVE THAT DISCUSSION. IF YOU'RE GOOD, WE CAN MOVE FORWARD.
>> WITH THE PRIORITIES, ONE OF THE THINGS THAT GETS A LOT OF FUNDING AND IS VERY IMPORTANT IS OUR WATER.
I DIDN'T KNOW IF THERE WAS A DESIRE TO REFLECT OUR EFFORTS WITH WATER AS A PRIORITY OR LEAVE IT AS IS.
JUST SOMETHING I WAS THINKING OF AS I WAS READING THROUGH THE PRESENTATION FOR TODAY. THERE IS A SIGNIFICANT PORTION ALLOCATED TO WATER.
>> NOT EVEN MENTIONING THE RESERVOIR EFFORTS.
THERE IS A LOT OF MONEY THAT HAS GONE INTO MAKING SURE THAT WE HAVE ADEQUATE WATER FOR THE FUTURE, BUT STILL A LOT OF WORK THAT NEEDS TO BE DONE.
>> IS THAT SOMETHING COUNCIL WANTS TO ADD TO THE PRIORITIES?
>> I AGREE WITH COUNCILMAN. THAT SHOULD BE A PRIORITY OF ABILENE, THE WATER AND THE FUTURE OF THE
WATER. >> I THINK THE PRIORITIES HELPS THE STAFF ALLOCATE MONEY WHERE THE COUNCIL WANTS THOSE THINGS ÷÷TO BE AND THAT'S A GOOD THING, THE THIRD ITEM ON OUR PRIORITY LIST, EFFICIENT AND COST EFFECTIVE GOVERNANCE, THAT'S A VALUE THAT WE WANT, BUT THE REST OF THESE ARE ACTIONABLE AREAS AND THAT ONE IS JUST KIND OF AN IDEA. AND I'M NOT -- IT IS NOT THAT THAT'S NOT A PRIORITY, IT IS JUST NOT A THING THAT WE'RE GOING AFTER.
AS FAR AS I CAN TELL, WE HAVE THAT, WE WANT TO MAINTAIN THAT.
SHOULD WE LEAVE THAT ON THE LIST AS A PRIORITY TO FOCUS ON? DO WE FEEL LIKE THAT'S A PROBLEM NOW? IT IS ONE OF OUR GOAL S. I'M -- THIS IS A -- I'M JUST ASKING THE QUESTION. THAT ONE IS DIFFERENT THAN THE OTHER FOUR, THE DEFERRED MAINTENANCE, STREET MAINTENANCE, DOWNTOWN REDEVELOPMENT, INFILL DEVELOPMENT.
I THINK WATER INFRASTRUCTURE IS PROBABLY AN EXCELLENT ADD, BUT AT THE SAME TIME, I THINK ABOUT FIVE PRIORITIES IS ABOUT THE LIMIT. YOU COULD DO SIX, BUT IF EVERYTHING IS A PRIORITY, THEN --
>> COUNCILMAN, YOU'RE NOT WRONG ABOUT -- FROM A MANAGEMENT TRAGEDY STANDPOINT AND PUTTING A STRATEGIC PLAN TOGETHER, WHICH ONE OF THESE THINGS DOESN'T BELONG HERE, THAT WOULD BE A GREAT EXAMPLE OF THAT.
BUT THIS LIST IS ALSO REFLECTIVE OF WHAT THE COUNCIL IS, SO AT THE TIME, THAT'S WHAT THE COUNCIL WANTED. BUT THAT'S WHY WE'RE TALKING.
>> I PREFER TO KEEP IT THERE. MY THINKING IS, YOU KNOW, HAVING IT THERE MAY HAVE BEEN WHAT GOT US TO THIS POINT, THAT IT IS HOPEFULLY MORE EFFICIENT AND COST EFFECTIVE NOW BUT IT IS SOMETHING THAT YOU HAVE TO STAY ON.
IT IS NOT ONCE YOU GET THERE, WE ALWAYS STAY EFFICIENT, WE ALWAYS STAY COST EFFECTIVE. IT IS EVERY DECISION WE'RE MAKING, STAFF IS MAKING, WE GOT TO KEEP THAT ON TOP OF THE MIND, EFFICIENT, COST EFFECTIVE FOR THE TAXPAYER. MY PREFERENCE WOULD BE TO MAINTAIN IT BECAUSE I THINK IT, IN A GOOD WAY, PERVADES EVERY OTHER DECISION WE MAKE, WHETHER WE'RE TALKING ABOUT WATER INFILL, STREET MAINTENANCE, WHATEVER, WE HAVE TO BE EFFICIENT, WE HAVE TO BE COST EFFECTIVE WITH THOSE DOLLARS.
I THINK IT IS A PRIORITY THAT KIND OF BLEEDS INTO EVERYTHING ELSE. MY PREFERENCE WOULD BE TO STAY THERE. I UNDERSTAND WHAT YOU'RE SAYING, BRIAN. MY PREFERENCE WOULD BE TO KEEP IT THERE.
[00:10:04]
>> I THINK WE'RE -- IT IS A GOOD THING. I'M NOT DISAGREEING WITH IT.
IT IS A LITTLE BIT REDUNDANT IN OUR STRATEGIC GOALS.
WE HAVE EFFECTIVE GOVERNING, I THINK THE PRIORITIES NEED TO BE ACTIONABLE ITEMS WE'RE GOING TO PURSUE. SO I WOULD BE IN FAVOR OF PUTTING THAT IN THE STRATEGIC GOALS SECTION AND ADDING WATER INTO THE COUNCIL PRIORITIES. THAT WOULD BE MY THOUGHT.
THE STRATEGIC GOALS ARE ONGOING.
>> YES, THEY ARE. AND THEY -- THEY REALLY RIDE SHOTGUN OVER WHAT THE DEPARTMENT FUNCTIONS ARE DOING.
SO IS THERE A CONSENSUS ON THIS FROM THE COUNCIL?
>> I AGREE WITH WHAT LYNN WAS SAYING.
I THINK SO. AND IT MAKES ME THINK IN TERMS OF, YOU KNOW, THE -- IT DOES SEEM A LITTLE REDUNDANT IN TERMS OF A NORMAL JOB DUTY THAT IS KIND OF WORKED OR BAKED INTO SOMETHING AS OPPOSED TO SOMETHING THAT CREATES AN ACTIONABLE, EFFECTIVE, OVERALL VANTAGE POINT FOR THE CITY.
I'M IN FAVOR OF REPLACING IT WITH WATER AND MOVING THAT TO THE -- IT ESCAPED ME. GO TO THE NEXT SLIDE.
THE STRATEGIC GOALS. THANK YOU,
SHAWNA. >> WHAT I HEAR THE BALANCE OF COUNCIL SAYING IS THAT EFFICIENT AND EFFECTIVE GOVERNMENT WILL BE ADDED TO THE STRATEGIC GOALS AND IN REPLACE ON THE COUNCIL PRIORITIES WE'LL ADD WATER INFRASTRUCTURE AND WATER SOURCES, SOMETHING ALONG THOSE LINES?
[3. Discussion Items]
OKAY. ANY OTHER COMMENTS ON THIS AT ALL? OKAY.WANT TO TALK NOW ABOUT THE FISCAL YEAR 2026 PRELIMINARY BUDGET. SO LET ME LAY A LOT OF CAVEATS OUT THERE. THIS IS VERY, VERY PRELIMINARY.
VERY PRELIMINARY. WHAT WE HAVE DONE TO GET HERE, AND I'LL PUT IT IN CONTEXT, WE'RE ABOUT -- END OF JANUARY. WE'RE FOUR MONTHS AWAY FROM REALLY STARTING THE BUDGET NORMALLY.
AND THE SCHEME OF REVENUE PROJECTIONS AND THOSE SORTS OF THINGS.
SO, WHAT WE HAVE DONE IS WE HAVE TAKEN WHAT WE KNOW WE'LL BE ABLE TO SEE IN APPRAISAL GROWTH, JUST -- PROPERTY TAX GROWTH, JUST THE 3. 5% THAT IS STATUTORY AND CAPPED.
WE DON'T HAVE ANY ADDITIONAL INCREMENT AVAILABLE IN FY 26, SO WE JUST DON'T HAVE THAT TOOL IN FRONT OF US.
WE'LL HAVE ADDITIONAL INCREMENT IN 27.
>> THE 25, WE DID NOT INCREASE THE -- EVEN CLOSE TO THE FULL INCREMENT.
IS THAT NOT APPLIED TO THE 26?
>> IT DOES NOT. THERE IS A -- IT IS A THREE- YEAR -- IT IS NOT QUITE AS SUCCINCT AS THE LEGISLATIVE LANGUAGE MIGHT LEND ONE TO BELIEVE.
MUCH IN LIFE, IT IS MUCH MORE COMPLICATED THAN
THE CALCULATION THAT WE'RE REQUIRED TO USE DOESN'T FREE UP -- WE DON'T HAVE ANY ADDITIONAL INCREMENT THAT IS ANYTHING TO SPEAK OF. SO WE'RE CONSTRAINED THERE.
WE HAVE BEEN AT 3.5%. COUNCIL CHOSE NOT TO DO THAT, WE DON'T HAVE TO GO THE FULL 3.5%.
WE DID NOT INCLUDE ANY NEW VALUE.
WE KNOW WE'LL HAVE NEW VALUE, WE JUST DON'T KNOW HOW MUCH BECAUSE THESE THINGS HAVEN'T BEEN CALCULATED YET. SO I SAY THAT THAT THESE NUMBERS ARE GOING TO BE VERY CONSERVATIVE. WE ARE FORECASTING A 1% INCREASE IN SALES TAX GROWTH, WHICH, RIGHT NOW, I FEEL COMFORTABLE WITH, BUT IF OUR SALES TAX IN FEBRUARY, WHICH WILL BE CHRISTMAS SALES, IS NOT HEALTHY, I WOULD GO DOWN TO A FLAT TAX.
I WOULD GO DOWN TO A FLAT 0% NO GROWTH.
AND SO YOU'LL SEE THAT THERE ARE -- THERE IS EXTRA REVENUE AT THE END OF THIS.
SO WE HAVE ROOM TO WIGGLE. AND THIS IS VERY PRELIMINARY. AS THINGS PROGRESS, THE BUDGET PROCESS AND YOU ACTUALLY HAVE YOUR BUDGET MEETINGS IN JULY, OBVIOUSLY THOSE -- THE CLARITY OF THAT IMAGE WILL BE MUCH CLEARER AT THAT POINT IN TIME. SO, STARTING THROUGH THIS PROCESS, YOU KNOW, WE HAVE APPROVED A BUDGET.
$132 MILLION IN REVENUES, APPROVED IN FY 25.
WE LOOKED LIKE WE WERE GOING TO BE OVER OUR RESERVE REQUIREMENT BY $792,000. THE PROJECTED EXPENDITURES INCLUDE THE TRANSFER TO MIP, ONE OF THE REASONS YOU SEE THE DELTA BETWEEN THE PROJECTED AND APPROVED AND THE REQUIREMENT.
BECAUSE WE TRANSFER THE RESERVES TO THE MINOR IMPROVEMENT
[00:15:03]
FUND, ANY RESERVE AMOUNT THAT IS OVER WHAT IS REQUIRED.AND THERE IS ADDITIONAL REVENUE IN THERE TOO.
SO WE GO TO THE PROJECTED SLIDE, AND YOU CAN SEE THAT WE HAVE -- AGAIN, WE'RE MEETING OUR RESERVE REQUIREMENTS, WE STILL HAVE REVENUE $179,000 ABOVE OUR RESERVE REQUIREMENTS.
AND TO PUT THAT IN CONTEXT FOR PEOPLE THAT DON'T NECESSARILY LISTEN TO WHATWHAT SAYING EVERY HEARING OR UNDERSTANDING IT IS THAT WE HAVE GOT TENS OF MILLIONS OF DOLLARS IN RESERVES. THOSE RESERVES ARE THERE, WE KEEP A 90- DAY RESERVE. WE DO THAT SO THAT IF SOMETHING HAPPENS, WE HAVE THE ABILITY TO FUND GOVERNMENT.
POLICE, FIRE, THOSE SORTS OF THINGS.
THEY HELP WITH OUR BOND RATES, OUR CREDIT RATINGS.
SO WE HAVE A AA PLUS. OUR RESERVES ARE A STRENGTH FOR OUR COMMUNITY AND WE HAVE GOOD RESERVES, THERE ARE CITIES THAT HAVE BETTER RESERVES AND THERE ARE CITIES -- A LOT OF CITIES THAT HAVE LESS RESERVES.
I THINK WE'RE WHERE WE NEED TO BE ON THAT. IN MY GENERAL OPINION, WE SHOULD BE A AAA BECAUSE DYE IS SUCH AN IMPORTANT PART OF OUR COMMUNITY, THEY LOOK AT THAT AND SAID WE'RE GOING TO DISCOUNT YOU BECAUSE YOU'RE VERY RELIED ON THIS MILITARY FACILITY. THEY'RE NOT WRONG, BUT FROM A FINANCIAL ASPECT, WE SHOULD BE AAA. I KNOW MINDY PATTERSON WOULD AGREE WITH ME.
SO THIS IS KIND OF WHERE WE ARE IN OUR ASSUMPTIONS.
PROPERTY TAX, 3. 5% INCREASE, 1.8.
1% SALES TAX. THERE IS SOME FRANCHISE FEES INCREASES, THE BUILDING PERMITS WE'RE GOING TO RECOMMEND SOME MODEST BUILDING PERMIT INCREASES AND WE'RE PROJECTING SOME INTEREST RATE DECREASES. NOW, WE DID THAT BECAUSE THE FED STARTED LOWERING THE FED FUNDS RATE, RIGHT? THE TEN-YEAR TREASURY HAS RESPONDED INVERSELY, IT HAS GONE UP RATHER THAN GO DOWN TO THE CHAGRIN OF EVERYBODY WHO WANTED TO GET A CHEAPER MORTGAGE.
SO I DON'T KNOW WHAT IS GOING TO HAPPEN WITH THAT. OUR CRYSTAL BALLS AREN'T NEARLY AS SOPHISTICATED TO FIGURE OUT WHAT THE BOND MARKETS AND TREASURY MARKETS ARE GOING TO DO.
THAT MAY NOT ACTUALLY MATERIALIZE. WE'RE PAINTING A VERY CONSERVATIVE PICTURE HERE ON PURPOSE. MAKE SURE EVERYBODY IS AWARE. SO, FROM AN EXPENDITURE STANDPOINT, WE HAVE TO MEET AND CONFER PAYROLL INCREASES, $2. 4 MILLION, POLICE AND FIRE.
FULL STAFFING FOR STATION 9 AND THE CIVIL SERVICE STEP PROGRESSION THAT GOES WITH THAT.
I'M GOING TO GET THESE STEPS WRONG, BUT I'M A FIVE- YEAR FIREFIGHTER NOW, I'M AN EIGHT- YEAR FIREFIGHTER, I THINK I GOT THAT RIGHT, OR SAME FOR THE POLICE OFFICERS.
THEY GET A BUMP IN PAY OFF THAT STEP PROGRESSION.
WE HAVE TO STAFF THE REC CENTERS. THAT IS THAT COST. WE WANT TO REDUCE BECAUSE OUR FUND BALANCE IN THE SELF-INSURANCE FUND, OUR HEALTH FUND, HAS GOTTEN VERY HEALTHY.
WE'RE GOING TO REDUCE A PORTION OF THE CITY'S CONTRIBUTION. IN PART TO OFFSET SOME PERSONNEL COSTS. WE WOULD LIKE TO REDUCE THE AMOUNT OF MONEY WE CHARGE VES FOR FLEET REPLACEMENT BECAUSE THAT REPLACEMENT FUND ALSO IS VERY HEALTHY AT THIS POINT IN TIME.
SO WE'RE KIND OF RATCHETING DOWN SOME THINGS.
A REDUCTION IN THE MIP. WE WERE AT 5%, WE HAVE GONE DOWN TO 4. 5% BECAUSE OF THE CONSTRAINTS WE'RE EXPERIENCING IN SALES TAX.
THAT'S WHAT THIS TRANSFER IS INTENDED TO DO, TO BE A RELIEF VALVE FOR THINGS. WE WOULD LIKE TO REDUCE THAT AGAIN TO 3.34%. THAT STILL PUTS ABOUT A MILLION DOLLARS ANNUALLY FROM SALES TAX TO THE MIP. IT IS NOT -- WE'RE STILL ABLE TO DO THE THINGS WE NEED TO DO. THIS WOULD BE A ONE- TIME REDUCTION. AND I'VE TALKED TO THE FINANCE DEPARTMENT, I'VE TALKED TO BOTH CHIEFS AND THEY'RE COMFORTABLE WITH THIS. REDUCE THE TRANSFER FOR POLICE AND FIRE BY $100,000 EACH FROM EACH ONE.
NOT GOING TO JEOPARDIZE THEIR PURCHASES.
IT WILL BE A ONE- TRICK PONY IN FY 27, PUT THAT BACK.
AND THEN REDUCE THE TRANSFERS FOR TRANSIT, HEALTH AND SELF-INSURANCE. AGAIN, BOTH -- ALL THREE OF THOSE FUNDS HAVE HEALTHY FUND BALANCE, SO WE'RE GOING TO REDUCE THE GENERAL FUND AND WATER UTILITY TRANSFERS TO THOSE FUNDS TO CREATE THE MONEY WE NEED TO OPERATE THE ORGANIZATION.
AND THIS COULD BE RECURRING. IF COUNCIL CHOSE TO MAKE THIS RECURRING, ALL THOSE FUNDING SOURCES ARE RECURRING, WE'RE JUST TRYING TO GET THROUGH KIND OF A SLOWER PERIOD OF ECONOMIC GROWTH.
>> AND, MR. HANNA, IF SALES TAX DOLLARS REBOUND, WHICH WE ALWAYS HOPE THEY DO, THAT, AGAIN, BECAUSE WE'RE THIS FAR OUT, A LOT OF THIS COULD BE IN FLUX?
>> THAT'S THE CHALLENGE WITH HAVING A BUDGET DISCUSSION TODAY LIKE THIS.
THAT'S EXACTLY RIGHT, YES, SIR. WE JUST DON'T HAVE ENOUGH DATA.
WE HAVE ENOUGH DATA TO TALK INTELLIGENTLY.
WE DON'T HAVE ENOUGH DATA TO BE DEFINITIVE.
>> OVERALL, THAT WOULD BE A NET INCREASE IN EXPENDITURES OF 1.5 MILLION, WHICH WOULD BE TOTALLY COVERED
[00:20:03]
BY THE PROPERTY TAX OF 3.5%, JUST SO YOU KNOW.SO, WHEN YOU TALK ABOUT WHAT ELSE SHOULD BE FUNDED, WE'RE TALKING ABOUT MOVING THE $2 MILLION TRANSFER TO THE MIP, I WANT YOU TO KEEP THAT IN MIND AS WE TALK ABOUT CAPITAL IMPROVEMENTS LATER IN THE AGENDA. WE'RE STILL FOLLOWING COUNCIL'S POLICY ON THAT. AND THAT IS WHERE WE ARE AT THIS POINT IN TIME. WHAT WE PUT TOGETHER IS BASICALLY A VERY, VERY BARE BONES BUDGET.
I DON'T HAVE ANY RECOMMENDED CAPITAL IMPROVEMENTS.
I WILL SAY THAT THERE IS ABOUT A -- ALMOST A $400,000 INCREASE IN LIBRARY PERSONNEL THAT WE FINALLY IDENTIFIED YESTERDAY. THAT'S NOT REFLECTED IN THE SLIDE. THAT WILL BE REFLECTED IN THE BUDGET YOU SEE IN JULY.
AND THAT STAFFING IS REQUIRED TO MEET ABILENE HERITAGE SQUARE.
WE HAVE A NEW LIBRARY FACILITY WE HAVE TO STAFF, LARGER THAN OUR CURRENT LIBRARY.
YOU NEED AN ADEQUATE NUMBER OF STAFF MEMBERS TO SERVE THAT, THE PUBLIC, AND THE KIDS, SO THAT THINGS DON'T HAPPEN, THAT CAN HAPPEN SOMETIMES IN LIBRARIES.
SO THAT NUMBER IS GOING TO BE CLOSER TO $1. 9 MILLION IN NEW EXPENDITURES AND THAT'S JUST PEOPLE. THAT'S JUST MEETING OUR OBLIGATIONS FOR OUR PEOPLE.
>> QUESTION WITH THE DANIELS AND CHAVEZ REC CENTER PERSONNEL.
IS THAT WITH THE LIBRARY PERSONNEL THAT ARE AT MOCKING BIRD BRANCH? IS THAT SUFFICIENT TO COVER THE LIBRARY NEEDS AT THOSE TWO FACILITYS?
>> WHAT I ASKED THE LIBRARY TO DO, JULIE CAN TALK TO THIS IF YOU HAVE MORE DETAILED QUESTIONS, I ASKED HER TO GIVE ME HER RECOMMENDATIONS FOR STAFFING FOR THE TWO NEW LIBRARY FACILITIES AT THE REC CENTERS.
SHE HAS DONE THAT. HER FIRST REQUEST WAS INCREASED STAFFING. AND I SAID, CAN YOU DO IT WITH THE STAFFING YOU CURRENTLY HAVE? SHE SAID, WE CAN. SO THE PLAN, AND THIS PROPOSAL WOULD BE TO TAKE THE STAFF, THE STAFFING THAT IS CURRENTLY AT MOCKING BIRD, REDEPLOY THEM TO THE TWO NEW CAMPUSES AND THEY CAN WORK COOPERATIVELY WITH ONE ANOTHER.
THEY'RE A REALLY GREAT TEAM. I THINK THE ONLY CONCERN THEY HAD WAS, HEY, WE WORK TOGETHER AS A TEAM, WE DON'T WANT TO BUST UP THE BAND, RIGHT? I THINK JULIE IS TALKING ABOUT A WAY TO KEEP THEM ABLE TO KIND OF WORK TOGETHER AND MAYBE CIRCLE PEOPLE AROUND.
I DON'T WANT TO SPEAK FOR HER, BUT I THINK THAT'S CLOSE TO THE PLAN.
>> ROBERT, ON TRANSIT, ON THE 1. 2 REDUCED TRANSFERS FORFOR TRANSIT, WE HAD IN THE PAST SOME ISSUES FINDING ENOUGH DRIVERS.
IS THIS GOING TO HANDICAP A LITTLE BIT OR ARE WE BACK AT A GOOD POSITION NOW AND THIS WON'T AFFECT THAT? HOW DOES THAT AFFECT THE DRIVERS AND PAYROLL?
>> THAT'S A GREAT QUESTION. THIS IS GENERAL FUND REVENUE WE PUT INTO THE SYSTEM. AND IT HAS GROWN OVER TIME.
IT JUST ACCUMULATED OVER TIME. WE'RE PULLING SOME OF THAT BACK. I DON'T THINK IT IS GOING TO AFFECT OUR ABILITY TO DO THAT.
I WILL SAY THAT WE ARE EXPERIENCING ON THE TRANSIT SERVICE AGAIN A LACK OF DRIVERS.
THIS HAS A WHOLE LOT TO DO WITH JUST WHAT IS GOING ON WITH THE ECONOMY.
MORE THAN THIS PARTICULAR ITEM HERE. WE HAVE GOT AGENCIES IN TOWN THAT ARE LAWFULLY USING THE SERVICE. BUT ARE DEFINITELY TAKING ADVANTAGE OF IT IN A WAY THAT PROBABLY WASN'T INTENDED WHEN THEY DRAFTED THE RULES FOR THIS IN WASHINGTON. BUT IT IS LEGAL. IT MEETS THE REGS. WE'RE BASICALLY SERVING AS A BUS SYSTEM FOR SOME OF THE ADULT DAYCARE FACILITIES AROUND TOWN AND HAPPY TO PROVIDE THE SERVICE, IT IS JUST NOT WHAT THAT SYSTEM WAS NECESSARILY ORIGINALLY THOUGHT IT WAS GOING TO BE.
AND SO, IT IS IN THE DESIGNED TO DO THAT, IT IS NOT STAFFED TO DO THAT.
AND IT REALLY CAN'T FUNCTION THAT WAY SUCCESSFULLY WHEN WE START LOSING DRIVERS JUST BECAUSE THEY GO TO DO OTHER THINGS.
WE'RE WORKING THROUGH THAT. DON AND I TALKED ABOUT THIS YESTERDAY. BLAISE, WE ARE TALKING ABOUT HOW CAN WE BRING IN OTHER DRIVERS FROM OTHER PARTS OF TEXAS FOR THE COMPANY THAT MANAGES OUR SYSTEM? AND HOW CAN FIRST TRANSIT DO THIS FOR US? WE'RE ALSO TALKING ABOUT THAT IT WOULD LOOK LIKE IF WE REDEPLOY ASSETS THE CITY IS CURRENTLY USING, OUR OWN EMPLOYEES, TO TEMPORARILY DRIVE PARA TRANSIT BUSES UNTIL WE CAN STAFF UP. YOU ALL WILL RECALL WE WENT THIS THROUGH HERE RECENTLY DURING THE SUMMER, IT HAS AN IMPACT ON PEOPLE'S LIVELIHOODS, SO RATHER THAN JUST SAY WE'RE STOPPING THE SERVICE, WHICH IS WHAT WE HAVE TRADITIONALLY DONE, I WANT US TO LOOK AT WHAT DO WE HAVE TO DO TO KEEP THE BUSES -- THIS PARA TRANSIT SYSTEM RUNNING WHILE WE TRY TO STAFF UP AGAIN. AND WE'RE STILL LOOKING FOR THAT. TO ANSWER YOUR QUESTION, WE'RE NOT FINDING THAT AREA, JUST HAS HAPPENED HERE IN THE LAST 30 DAYS. IT HAS NOT TO DO WITH THIS, JUST HAS TO DO WITH THE ECONOMY IN GENERAL.
[00:25:05]
ANY OTHER QUESTIONS ON THIS?>> DO THE POLICE AND FIRE APPARATUS FUNDS, MY RECOLLECTION IS THEY'RE ADEQUATELY FUNDED SO WE CAN REDUCE A LITTLE. WE'LL BE ABLE TO MEET THE ACQUISITION NEEDS FOR THE NEXT YEAR, EVEN WITH THE REDUCTION IN
TRANSFER? >> NEXT SEVERAL YEARS EVEN.
WE HAVE A COMMITMENT TO DOING THIS.
WE COULD HAVE TAKEN MORE, I DON'T WANT TO PUT US IN THE POSITION WHERE WE SEE THIS AS A SLUSH FUND, RIGHT? OR PIGGY BANK IS A BETTER TERM.
IT IS NOT A PIGGY BANK, IT IS A PLANNED EXPENSE OVER TIME.
WE'RE CASH FUNDING THESE THINGS.
WE HAVE TO BE CONSISTENT WITH THAT MODEL.
BUT I THINK DOING THIS FOR ONE YEAR WON'T HURT. AND FRANKLY, IF COUNCIL IS NOT SUPPORTIVE OF IT, YOU CAN PULL THAT OFF AND WE CAN -- WE'LL SURVIVE.
>> NO, I MEAN, IF WE HAVE THE FUNDS WE HAVE TO MEET THE NEEDS AND THE PROJECTIONS FOR THE EQUIPMENT ACQUISITIONS --
>> THAT LEVEL OF CHANGE IS IN THE REALM OF FINE TUNING.
>> YES, SIR. THAT'S MY THOUGHT EXACTLY.
ANY OTHER COMMENTS ON THIS? SO, UNLESS COUNCIL HAS CHANGES TO THIS, MINDY AND HER TEAM, BECAUSE I'M SUNSETTING, WILL USE THIS AS A BASIS TO PUT TOGETHER THE BUDGET FOR FY 26. AND WHOEVER THE NEW CITY MANAGER IS WILL THEN HAVE AN OPPORTUNITY ON WHEN THEY COME ON BOARD WILL HAVE AN OPPORTUNITY TO AT LEAST HAVE A SOLID FOUNDATION TO CONCLUDE THE BUDGET, OR THEY'LL HAVE A BUDGET DONE WHEN THEY GET HERE THAT WILL BE A SOLID FOUNDATION FOR THEM
TO MANAGE. >> ONE QUESTION ON THE REVENUE.
SO PREVIOUS SLIDE. WE'RE TALKING ABOUT THE PROPERTY TAX. WE DO HAVE THE STATUTORY ABILITY TO INCREASE THE RATE BY 3.5%.
BUT YOU'RE NOT, IS IT CORRECT THAT YOU ARE NOT USING ANY INCREASE IN VALUATION AS PART OF THE PLANNING FACTOR?
>> CORRECT. THERE IS NO -- SO, THAT'S ALL PART -- IT IS ALL A BUNCH OF PRESSURE VALVES, RIGHT? AND IF THE VALUATION GOES UP, OUR ABILITY TO INCREASE THAT RATE ACTUALLY COMES DOWN. IT IS TIED TO -- IT IS TIED TO THE ACTUAL NEW MONEY YOU GET IN YOUR POCKET IS 3.5%. IT IS NOT NECESSARILY TIED TO THE RATE. AND SO THAT IS CORRECT.
VALUATION, THE APPRAISAL DISTRICT, EVERYBODY GETS A MILLION DOLLAR INCREASE ON THEIR VALUATIONS, OBVIOUSLY OUR 3. 5%, THE RATE WILL BE DIFFERENT.
AS DESIGNED. THERE IS NO NEW VALUE.
I SAID THAT NOW FIVE OR SIX DIFFERENT TIMES.
THERE WILL BE NEW VALUE. THAT NUMBER COULD BE 400,000, IT COULD BE 4 MILLION. WE JUST DON'T KNOW.
GOOD. PAID PARKING, PARK MOBILE.
PARK MOBILE IS AN APP. IT IS JUST ONE COMPANY THAT DOES THIS STUFF. BUT IT IS THE COMPANY WE TALKED TO AND OUR SUGGESTION THAT WE USE. AND SO YOU DOWNLOAD THE APP ON YOUR CELL PHONE AND YOU WOULD BE IN -- YOU WOULD SEE IT SAYS THIS IS ZONE TWO, AND HERE IS THE QR CODE, SO YOU CAN SCAN THE QR CODE, OPEN THE APP, TAKE A PICTURE OF THE LICENSE PLATE, YOU MAY ENTER THE PARKING LOT YOU'RE IN OR YOU MAY NOT, DEPENDING HOW WE SET THE PROGRAM UP, PUT YOUR CREDIT CARD INFORMATION IN AND YOU WALK AWAY. AND AS THE DAY PROGRESSES, YOU'LL GET A NOTICE SAYING HEY, YOU'VE GOT 15 MINUTES LEFT ON THE METER, DO YOU WANT TO RENEW? YOU CAN RENEW OR AUTOMATICALLY RENEWS IF YOU DON'T RESPOND. AND THIS IS A SYSTEM THAT IS IN USE THROUGHOUT THE COUNTRY, THROUGHOUT THE STATE.
I SAW THIS SYSTEM WHEN I WAS ACTUALLY IN LOUISVILLE, KENTUCKY. AND I THOUGHT IT LOOKED GOOD.
THEY HAVE A SIMILAR SYSTEM IN FORT WORTH, IN TEXAS, AND AUSTIN, IN TEXAS, SO IT IS -- THIS IS NOT NEW TECHNOLOGY. IT WOULD BE NEW FOR ABILENE.
THERE IS SIGNS THAT WOULD BE PROVIDED AT NO COST TO THE CITY. THESE ARE THE SIGNS THAT SAY YOU'RE HERE, TALK ABOUT THE NOTICE OF THE PARKING REQUIREMENTS, YOU HAVE THE -- HOW YOU PAY THE PARKING, IT IS VERY SELF-DESCRIPTIVE. WE COULD INCLUDE A FREE AMOUNT AND SO, LIKE, RIGHT NOW ON STREET PARKING, DOWNTOWN ABILENE, YOU HAVE RO TO TWO HOURS ARE FREE.
YOU COULD DO THAT ON THIS. FOR QUICK TURN AROUND FOR RETAIL CUSTOMERS AND RESTAURANTS, COULD STILL HAVE FREE PARKING AVAILABLE.
WHAT WE'RE SEEING AND THE REASON WHY WE'RE LOOKING AT THIS IS THAT YOU'VE GOT PEOPLE AND BUSINESSES THAT ARE JUST PARKING AND THEY HAVE GOT BUSINESS EQUIPMENT, TRAILERS, BUSINESS VEHICLES, THEY'RE USING IT AS THEIR PRIVATE LOT WHICH I DON'T THINK WAS THE INTENTION OF THE PUBLIC PARKING LOT. IF THAT'S COUNCIL'S POLICY, THEN THAT'S OKAY. BUT WE HAVE NOT REALLY HAD THAT
[00:30:01]
DISCUSSION. SO THIS IS PART OF THAT DISCUSSION TOO. WHAT DO WE WANT THESE THINGS TO BE? SO ALSO A REVENUE GENERATOR, NO REASON TO HIDE BEHIND THAT. IF WE'RE GOING TO HAVE ATTRACTIVE LANDSCAPING DOWNTOWN, WE NEED TO FIND A WAY TO MAINTAIN THIS, NEEDS TO BE MAINTAINED TO LOOK GOOD. THIS IS A REF NEW VENUE STREAM TO DO THAT.ONE. NUMBER TWO, IT IS A WAY TO DO ADVERTISING FOR DOWNTOWN THROUGH THE ABILENE GROWTH ALLIANCE, YOU COULD PARTNER WITH OUR PRIVATE SECTOR PARTNERS TO DO THESE SORTS OF THINGS.
THIS CAN BE A FUNDING STREAM TO DO THAT. MY POINT IS THAT THIS DOESN'T HAVE TO BE MONEY THAT HAS TO GO TO PAY FOR FIREFIGHTERS, POLICE OFFICERS OR LIBRARIANS.
THIS IS SOMETHING THAT COULD BE REINVESTED INTO DOWNTOWN. WE STILL HAVE TO HAVE AN ENFORCEMENT OPERATION. SO SOMEONE WHO CHOSE TO PARK THERE, WE STILL HAVE TO HAVE A PERSON -- THEY HAVE A BACKEND TO THE SOFTWARE THEY CAN GO, OKAY THIS PERSON IS HERE, THIS PERSON IS NOT HERE. THEY'RE NOT -- THEY'RE NOT PAYING. THEY'RE SQUATTING ON THE LOT.
OKAY. THEY GET A TICKET, RIGHT? SO WE STILL HAVE TO HAVE THAT ENFORCEMENT PORTION SIDE OF IT. THIS IS KIND OF SOME SCREEN SHOTS OF WHAT THIS LOOKS LIKE.
YOU SEE THE SIGN, YOU SEE THE INTERACTION OF SETTING THE ACCOUNT UP. IT TEXTS YOU UPDATES.
YOU CAN CHECK OUT AS A GUEST, YOU DON'T TO HAVE THAT ACCOUNT WITH THE SYSTEM.
IT IS VERY USER FRIENDLY. AGAIN, GOES THROUGH THAT -- YOU CAN PULL IT UP ON YOUR SCREEN, YOU CAN SEE YOUR LIVE ACTIVITIES, IT WILL PUSH YOU NOTICES, YOU GET EMAIL NOTICES, IT REALLY HAS EVERY MEANS OF A CELL PHONE OR SMARTPHONE TO MAKE CONTACT WITH THE USER, WHICH WE WOULD EXPECT.
THE PROPOSED LOTS WE'RE LOOKING AT ARE THOSE LOTS IN GREEN, THOSE OTHER TWO LOTS ARE LOTS THAT THE CITY OWNS IN DOWNTOWN.
THEY ARE CURRENTLY FREE LOTS. AND SO MY PROPOSAL IS WHY ROCK THE BOAT? WE ALREADY HAVE TWO FREE LOTS IN DOWNTOWN. LET'S KEEP THOSE FREE.
THESE TWO NEW LOTS THAT ARE NEW AND COMING ON BOARD, WE SHOULD LOOK AT -- THAT'S MAYBE THE LOTS WE LOOK AT HAVING THIS DISCUSSION ON MONETIZING.
IF COUNCIL WANTED TO DO ALL THE LOTS DOWNTOWN, WE COULD DO THAT. STAFF AND I HAD A DISCUSSION ABOUT WHAT ABOUT ON STREET PARKING? DO WE WANT TO CHANGE THAT AND MAKE IT A PAID SYSTEM TOO? THE FIRST TWO HOURS ARE FREE, BUT IF YOU'RE THERE ALL DAY, YOU'RE PAYING A PARKING METER. RATHER THAN HAVING OUR PERSON WALK AROUND AND ISSUING CITATIONS.
ALL THOSE ARE OPPORTUNITIES FOR DISCUSSION.
BUT REALLY THE QUESTION IS, THIS IS A NEW ENDEAVOR.
IS THIS SOMETHING THAT CITY COUNCIL WANTS TO PURSUE? THIS IS SOMETHING WE SUGGESTED COULD BE THE FEE SYSTEM. VERY LOW UP- FRONT OR FREE DEPENDING WHAT COUNCIL WANTED TO DO.
IT PROGRESSES OVER TIME. THAT NINE- HOUR RATE, THAT DAILY RATE, THAT $20 IS DERIVED AT BECAUSE THAT'S WHAT THE PARKING RATE IS FOR THE HOTEL ON A DAILY RATE.
AND SO, IF YOU'RE THERE ALL DAY, WHAT YOU WANT -- YOU DON'T WANT TO CREATE A NEXUS ISSUE FOR THE HOTEL. BECAUSE THAT PAID PARKING IS A REVENUE STREAM FOR THEM, AND SO WE HAVE A VESTED INTEREST WITH THAT SERVICE TO MAKE SURE THEY'RE MAKING ALL THE MONEY THEY NEED TO MAKE SO WE DON'T WANT TO SCALP, RIGHT? SO WE HAVE TO BE CAREFUL WITH THAT. THEY'RE RIGHT NEXT TO EACH OTHER. YOU ALREADY SEE SOME OF THAT ACTIVITY TAKING PLACE. AND WE HAD TO PUSH THE HOTEL BACK BECAUSE THEY TOOK THE WHOLE DARN LOT AT FIRST AND WE HAD TO CONDENSE THEM TO RECOGNIZE THAT, NO, YOU CAN HAVE YOUR VALET HERE, BUT YOU CAN'T TAKE THE WHOLE LOT FOR YOUR VALET. THAT DOESN'T WORK.
ALL THAT IS CHANGEABLE. I WANTED TO GIVE COUNCIL SOME IDEAS OF WHAT THIS COULD LOOK LIKE. SO, WHERE WE WOULD GO FOR THIS IS OBVIOUSLY WE HAVE TO HAVE AN ORDINANCE THAT ALLOWS FOR THIS. WE HAVE TO GO THROUGH THIS PROCESS OF CONTRACTING WITH THE VENDOR, GETTING IT SET UP AND ROLLING THE PROGRAM OUT. FROM A STANDPOINT OF THE BACKEND OF THE FEES, THERE ARE FEES CHARGED WITH CREDIT CARD PROCESSING. SO THAT WILL BE PASSED ON TO THE CUSTOMER. PARK MOBILE, THEY HANDLE ALL THE -- THE CITIZEN SAYS, HEY, I DIDN'T PARK HERE, THAT WASN'T ME, THEY HANDLE ALL THAT. IT IS NOT SOMETHING WE HAVE STAFF WHO IS DEALING WITH OR INTERFACING WITH THE PUBLIC ON AS A THIRD PARTY CONTRACTOR, THEY'RE HANDLING ALL THAT.
SO JUST SOME GENERAL QUESTIONS ARE, IS THIS SOMETHING THAT COUNCIL IS INTERESTED IN? WHAT WILL THE FEE STRUCTURE LOOK LIKE? IS THERE A TIMELINE WE WANT TO LOOK AT IMPLEMENTING THIS? I WILL SAY THAT YOU CAN'T -- THERE ARE PRECIOUS FEW URBAN DOWNTOWNS IN AMERICA WHERE YOU CAN GO AND PARK FOR FREE ALL DAY AND NOT PAY ANYTHING. AND THERE IS A REASON FOR THAT.
RIGHT? YOU NEED TO HAVE TURNOVER IN THE
[00:35:03]
LOTS. YOU -- IT IS NOT NECESSARILY THE BEST PRACTICE TO HAVE JOE'S CONSTRUCTION EQUIPMENT PARKING ON YOUR PUBLIC PARKING LOT.SO, I'M ASKING COUNCIL FROM A POLICY PERSPECTIVE WHAT IS IT YOU'RE WANTING TO SEE? WHAT DO WE WANT TO DO?
>> I HAVE SOME THOUGHTS ON THIS, BUT I WANTED TO ASK A QUESTION. WHAT IS THE REVENUE PROJECTION FOR THIS? IF IT WAS IMPLEMENTED AS, YOU KNOW, ACCORDING TO THESE TERMS, ARE WE LOOKING AT $50,000 A YEAR, $500,000 A YEAR POTENTIALLY?
>> 500. IT IS PROBABLY ANYWHERE FROM 180 TO 250.
>> OKAY. I SPOKE WITH SEVERAL STAKEHOLDERS DOWNTOWN ABOUT THIS SINCE IT CAME OVER THE LAST FEW DAYS.
ACROSS THE BOARD, THEIR CONSENSUS IS THEY SEE THE VALUE IN THIS, THE CONCERN IS THAT WE MAY BE A LITTLE PREMATURE IN THIS, THAT WE ARE TRYING TO DO EVERYTHING WE CAN FOR DOWNTOWN TO BRING PEOPLE DOWNTOWN. THERE IS STILL RELUCTANCE FROM SOME PEOPLE ON THE OUTER SIDES OF TOWN OR THEY HAVE FORGOTTEN ABOUT DOWNTOWN.
SO WE'RE STILL TRYING TO BRING PEOPLE DOWNTOWN.
I THINK THE CONCERN IS, WELL, THIS IS ANOTHER -- WELL, I'M NOT GOING DOWNTOWN, I'M NOT GOING TO PAY FOR PARKING. THE CONCERN WAS LET'S GET TO THE NEXT LEVEL, WHERE IT IS JUST -- IT IS NECESSARY TO IMPLEMENT THIS.
IT IS NOT A LUXURY. AND THEN, YOU KNOW, IF WE REVISIT IT IN A YEAR OR TWO, WHERE THE DEMAND IS THERE, THE BUSINESSES HAVE ENOUGH BUSINESS THAT THEY'RE NOT WORRIED ABOUT, OKAY, THIS WILL BE ANOTHER REASON WHY PEOPLE WON'T COME DOWNTOWN, THEN I THINK WE CAN LOOK AT THIS AND THEN I THINK FROM MY CONVERSATIONS WITH THE DOWNTOWN PEOPLE IS THAT THEN THEY'RE NOT OPPOSED TO THIS NOW. I THINK THE CONCERN IS WE'RE JUST A YEAR OR TWO PREMATURE ON THIS. BUT THERE WASN'T -- THERE WASN'T OPPOSITION TO THIS DOWN THE ROAD.
>> YOU HAVE AMPLE FREE PARKING OPPORTUNITIES DOWNTOWN NOW.
>> SOME OF THE PEOPLE I TALKED WITH, MAYBE NOT THE SAME PEOPLE, BUT IT WAS SOMEWHAT SUPPORTED, SOME NOT. I THINK THE REAL ISSUE IS SOMEST BUSINESS DOWNTOWN THAT ARE ACTUALLY MAKING THIS -- THAT MAKE IT A PROBLEM NOW AND IT KIND OF TAKES CARE OF THAT. I RECENTLY WENT TO ANCHORAGE, ALASKA, AND MOST OF THAT AREA IS PAID PARKING. AND I DIDN'T FIND AN ISSUE WITH IT ONCE YOU GOT USED TO YOU PARKING A COUPLE OF TIMES, HOW TO WORK THE SYSTEM, I JUST THINK IT CREATES MORE PARKING.
I THINK IT CREATES MORE PARKING OPPORTUNITIES.
I KNOW IF I COULD GO TO AN AREA AND KNOW I'M GOING TO BE ABLE TO GET A SPOT IN THE PAID PARKING TO TAKE ADVANTAGE OF IT, SO, I MEAN, I CAN SEE BOTH WAYS. BUT, I MEAN, WE'RE JUST IMPLEMENTING IT IN TWO LOTS NOW. NOT IMPLEMENT IT EVERYWHERE AND WE COULD OVER TIME.
I THINK THIS WOULD BE A GOOD TRANSITION AND A GOOD START, BUT THAT'S JUST ME PERSONALLY.
>> YEAH, THERE IS A REASON WHY I HAVE SO MANY EMAILS ON MY PHONE, BECAUSE I SAVE EVERYTHING.
AND I LOOKED UP AN EMAIL I SENT YOU ON JUNE 3RD, 2018.
>> I'M SURE YOU DON'T. YOU HAVE GOTTEN A FEW SINCE THEN. BUT IT WAS AN EMAIL TO YOU THAT SAID, HEY, AND I'M IN DOWNTOWN FORT WORTH, WE'RE PAYING FOR PARKING, CAN WE IMPLEMENT SOMETHING LIKE THIS? SO THAT'S -- I KNOW THIS -- A LOT HAS HAPPENED.
IN 2018, THIS WAS A CONCERN OF MINE, I THINK IT IS A GOOD PROGRESSION. BECAUSE, YEAH, WHEN I GO TO DOWNTOWN, IF IT IS SAN ANTONIO, FORT WORTH, I'M GOING TO PAY TO PARK DOWNTOWN.
I'M GOING TO PARKWAY SOMEWHERE ELSE AND WALK OR WHATEVER. I THINK THIS IS A GOOD START IN SOMETHING WE NEED TO DO TO FREE OPEN -- AS THE MAYOR SAID, YEAH, THERE ARE SOME PLACES WHERE -- PEOPLE PARK THERE AND THEY'RE THERE ALL DAY.
AND THEY NEVER MOVE AND THAT'S A PRIME SPOT THAT IS BEING TAKEN UP. SO I WOULD LIKE TO SEE THIS -- AT LEAST MOVE DOWN THIS ROAD, SO TO SPEAK.
>> IN TERMS OF THE ENFORCEMENT PIECE, WOULD THAT REQUIRE US HIRING MORE PEOPLE OR WE HAVE ENOUGH PEOPLE?
>> WE HAVE ENOUGH PEOPLE NOW. AND THE PARKING PROGRAM WE HAVE IS SELF-FUNDED. TICKET REVENUE GOES UP AND DOWN OVER TIME, DEPENDING ON THE YEAR.
BUT IT -- WE ALWAYS HAVE BEEN ABLE TO RECOVER THE COST OF THE EMPLOYEES THAT ARE OUT THERE DOING IT.
IT IS NOT A BURDEN TO THE GENERAL FUND.
>> AND IN TERMS OF JUST MY EXPERIENCE, I THINK THE NETWORK CAPABILITY, WHEREVER WE WOULD THINK OF PLACING THIS, HAVE WE TESTED TO SEE IF THERE WOULD BE ANY POTENTIAL GLITCHES WITH OUR NETWORK PROVIDERS IF WE WERE TO IMPLEMENT THIS?
>> WELL, IF YOU HAVE -- YOU CAN GET A CELL PHONE DOWNTOWN, IF YOU GET A CELL PHONE SIGNAL AT
[00:40:02]
WORK, YOU HAVE A SMARTPHONE, IT IS NOT RELIGHT ON ANY YING ON OUR INFRASTRUCTURE, IT IS AT&T, VERIZON, WHATEVER YOUR CELL PHONE PROVIDER WOULD BE.THERE ARE AREAS WHERE YOU GET ONE BAR.
BUT I'VE NEVER BEEN IN DOWNTOWN ABILENE AND NOT HAD A CELL SIGNAL.
FAIR ENOUGH. WHO IS YOUR PROVIDER?
>> I KNOW -- I'M JUST THINKING TOP OF MIND WHAT WAS MOST RECENT, AND IT IS BECAUSE OF THE PEOPLE, BUT THE PARADE ITSELF COSTS SO MUCH IN TERMS OF NETWORK. I'M JUST TRYING TO THINK THROUGH IF THERE WOULD BE POTENTIAL ISSUES WITH THAT.
>> YOUR POINT AND YOU'RE SPOT ON, YOU HAVE GOOD SIGNALS THROUGHOUT MOST OF THINGS AND GET 10,000 PEOPLE DOWNTOWN, RIGHT. WE CAN PARTNER AND WE STARTED THAT PROCESS THIS YEAR WITH EMERGENCY MANAGEMENT, YOU BRING COWS IN, COMPUTERS ON WHEELS, THEY HAVE PORTABLE CELL TOWERS, AND THEY PROVIDE SOME OF THAT, THAT OPPORTUNITY TO PROVIDE ADDITIONAL COVERAGE.
THAT'S ONE OF THE PROMISES OF 5G.
WE HAVE SEEN THOSE ASSETS NOW IN TAYLOR COUNTY THAT CAN BE DEPLOYED. WE HAVE TO REQUEST THEM.
NOT THAT THAT'S A SILVER -- A SILVER PILL OR GOING TO SOLVE ALL THE PROBLEMS, BUT IT CAN HELP WITH THAT.
THE OTHER THING WE COULD DO IS ON THOSE DAYS LIKE THAT, WE COULD PROVIDE THE SYSTEM TO NOT CHARGE. SO WHEN WE KNOW WE'RE GOING TO HAVE A PUBLIC EVENT DOWNTOWN LIKE THAT, WE COULD MAKE THOSE SORTS OF
>> COWS, YES, SIR. IN A LOT IN TEXAS.
>> SO I'M SUPPORTIVE OF THIS FROM A CONCEPTUAL STANDPOINT. I THINK BECAUSE WE ARE OPENING TWO NEW LOTS THAT I THINK IS THE INCREMENTAL STEP TO BEGIN THIS, LONG- TERM I THINK WE GO AHEAD AND LOOK TOWARDS AND THIS MAY BE WHERE WE TAKE IT A LITTLE SLOW TO BLAISE'S POINT, BUT I THINK ALL THE ONSTREET PARKING AND THE INTENT HERE IS TURNOVER. BUT AS WE DO THAT, I THINK RATHER THAN IMMEDIATELY CHARGING -- I THINK WE GIVE EVERYBODY TWO HOURS IN ALL OF THE LOTS FOR FREE. AND THEN ADJUST IT SO THAT IF YOU'RE PARKING THERE ALL DAY, YOU'RE GOING TO PAY, BUT IF YOU'RE PARKING IN OUR NEW LOT, YOU STILL GET YOUR -- THE TWO HOURS, JUST LIKE YOU WOULD ON THE STREET BECAUSE WHAT WE'RE TRYING -- WE'RE NOT TRYING TO KEEP PEOPLE FROM COMING AND RUNNING AN ERRANT OR MEETING FOR LUNCH OR DOING SOME SHOPPING. I THINK THAT'S A DESIRABLE THING. AND I THINK TO HELP OUR DOWNTOWN BUSINESSES, WE DON'T WANT TO DETER PEOPLE PARKING. SO I THINK THAT TWO HOURS OF FREE IS AN IMPORTANT ASPECT OF THIS. I ALSO THINK IF SOMEBODY'S EMPLOYEES ARE TAKING THOSE PRIME SPOTS ON THE STREETS IN FRONT OF THE SHOPS, OR IN THESE NEARBY LOTS, ALL DAY, I THINK THAT THEY SHOULD BE PAYING FOR THAT. THE CITY NEEDS TO HAVE THAT REVENUE TO RECOUP THE COSTS OF MAINTAINING THE LOTS, REPAVING THEM, MAINTAINING THE LANDSCAPING THAT IS ASSOCIATED WITH IT.
SO, I THINK -- MY APPROACH TO THIS IS START WITH THE TWO THAT YOU'RE PROPOSING WITH THE EXCEPTION OF TWO HOURS FREE, AND THEN INCREMENT IT UP TO THE 20 THAT YOU'RE SAYING FOR A FULL DAY.
I THINK THAT'S GREAT. THE ONE QUESTION I'VE GOT IS DO WE HAVE A REQUIREMENT THAT WE HAVE TO PROVIDE AN ALTERNATIVE METHOD OF PAYING? IF SOMEBODY DOESN'T HAVE A CELL PHONE, AND THEY PARK THEIR CAR THERE, CAN THEY PAY? CAN THEY DO THAT? ARE THEY AUTOMATICALLY GETTING A÷÷TICKET?
>> THEY'RE NOT AUTOMATICALLY GETTING A TICKET.
AND WE CAN ASK THE VENDOR THAT. MIKE, UNLESS YOU HAVE THE ANSWER OFF THE TOP OF YOUR HEAD. YOU DO NOT.
NO AUTOMATIC TICKET. IF THERE IS AN ANALOG WAY OF THIS, WE CAN ASK THE VENDOR.
YOU'RE GOING TO HAVE TO CALL SOMETHING OR SOMEBODY.
YOU CAN CALL -- I THINK THERE IS A NUMBER YOU CAN CALL AND THEY WILL HELP YOU THROUGH THAT PROCESS. BUT PART OF THE MOVING TO NEW DIGITAL SOCIETY IS THE ASSUMPTION WE'RE ALL DIGITAL READY AND THERE IS A FALLACY THERE, NO DOUBT.
>> IS THE CITY AT RISK BY NOT PROVIDING AN ALTERNATIVE?
>> I DO NOT BELIEVE WE ARE, ONLY BECAUSE THIS IS ACROSS AMERICA. AND IT IS BEING USED.
MORE THAN LESS. >> THE NUMBER OF PEOPLE WITH A CAR BUT NO CELL PHONE IS ARGUABLY
SMALL. >> ARGUABLY SMALL, YES, SIR.
>> I HAVE SOME OTHER THOUGHTS ON THIS, IF YOU GUYS DON'T.
[00:45:02]
>> PART OF MY -- MY CONCERN HERE IS THAT, YOU KNOW WITH THE CYBERSTREET IMPROVEMENT FUND WE LOST SOME PARKING AND AS WE BALANCE IT OUT, WE MOVE FORWARD ON THE PARKING LOT ACROSS FROM THE MODUS BUILDING. IF WE'RE LOOKING AT, WELL, NOW WE ELIMINATED SOME OF THE PARKING SPOTS, WE OPENED THIS UP, BUT NOW WE'RE CHARGING, RIGHT? IT IS NOT A BAIT AND SWITCH, BUT IT IS A LITTLE BIT -- THE OPTICS CERTAINLY AREN'T GOOD.
I WOULD ALSO, I THINK -- I THINK BRIAN TOUCHED ON THIS A LITTLE BIT, ON THE PRACTICAL LEVEL, IF YOU'RE A WAITER, YOU WORK IN ONE OF THE RETAIL SHOPS DOWNTOWN, THE EMPLOYEES THERE HAVE TO, EVERY DAY THEY'RE COMMUNICATING WITH EACH OTHER GOING, ALL RIGHT, SOME OF THEM WILL HAVE A -- THEY'LL PUT THEIR KEYS IN A BOWL, AND ONE PERSON EVERY HOUR AND 50 MINUTES HAS TO GO AROUND AND MOVE EVERYONE'S CAR EVERY TWO HOURS EVERY DAY SO THEY DON'T GET A TICKET. THERE IS A COST TO THE BUSINESS, THAT EMPLOYEE IS OUT MOVING CARS, THERE IS A COST OF -- TO THE MENTAL HEALTH, LET'S CALL IT OF AM I GOING TO GET A TICKET TODAY, SO THERE IS A BUSINESS COST TO THIS, WHETHER IT IS THE TWO- HOUR PARKING OR, WELL, WE'LL MAKE PAID PARKING AND THEY CAN JUST PAY FOR IT. WELL, THAT'S COMING OUT OF, YOU KNOW, THAT WAITER'S SALARY. AND THEY'RE GOING TO BE PAYING, I FORGET WHAT THE PROPOSED TRANSACTION -- THE COST WOULD BE, BUT THAT'S $10, $15, $20 OUT OF THEIR PAYCHECK JUST TO PARK.
THEY COULD PARK, YOU KNOW, THREE, FOUR, FIVE STREETS OVER, THERE IS ALWAYS THAT OPTION.
BUT I THINK WE'RE LOOKING AT IT FROM, OKAY, BUSINESS PERSPECTIVE, IS THIS GOOD? AND THEN WE ALSO NEED TO LOOK AT IT FROM THE EMPLOYEE SIDE BECAUSE THAT DIRECTLY AFFECTS THE BUSINESS AS WELL. CAN WE!? YES. AT THIS POINT I'M AGAINST IT JUST BECAUSE OF THE DETRACTION TO POTENTIAL BUSINESS, CUSTOMERS COMING IN, BUT ALSO TO THE COST OF BUSINESS AND THEIR EMPLOYEES.
FOR THIS RIGHT NOW, IT IS A GOOD OPTION FOR THE EMPLOYEES, THE WAITERS, THE PEOPLE WHO WORK IN THE RETAIL, THE BOUTIQUE SHOPS, OKAY, FINALLY WE HAVE A PLACE TO SHOP. I DON'T WANT TO TAKE THAT WAY, AT LEAST NOT YET. I THINK WE COULD REVISIT IT IN A YEAR OR TWO YEARS WOULD BE APPROPRIATE.
THE OTHER THING, JUST ON A PRACTICAL LEVEL, THE LOT NEXT -- ACROSS FROM MODUS BUILDING, DOES THE CITY OWN THAT OR DOES AIC OWN THAT? IS THAT GOING TO BE A SPLIT REVENUE SHARING TYPE OF SITUATION?
>> SO IT IS TITLE OF THE PROPERTY IS UNDER ABILENE IMPROVEMENT COOPERATION. THEY'RE ENTERING INTO A LEASE TO PUT A PUBLIC PARKING LOT THERE.
THE LEASE DOES ALLOW FOR THE CITY TO MONETIZE THE LOT.
THAT REVENUE STAYS WITH THE CITY FOR PURPOSES.
BUT, AGAIN, I THINK FROM A USE OF THAT REVENUE, IMPROVEMENT OF DOWNTOWN IS A GOOD USE OF THE FUNDS.
>> AS AN ALTERNATIVE, AGAIN, I'M OPPOSED TO BOTH THESE BEING TURNED INTO PAID LOTS, BUT IF THE DIRECTION OF THE COUNCIL -- THE REST OF THE COUNCIL IS, YEAH, LET'S MOVE FORWARD ON MAKING THEM PAID, MY ALTERNATIVE PROPOSAL WOULD, LET'S IMPLEMENT THIS IN STAGES, LET'S SEE HOW IT GOES, LET'S IMPLEMENT THE ONE NEXT TO THE DOUBLETREE FIRST, AND THEN IF THAT GOES WELL, AND WE STILL WANT TO MOVE FORWARD ON THE NEXT LOT, WE CAN DO THE NEXT LOT DOWN THE ROAD. I JUST VIEW THE ONE IN THE CENTER OF DOWNTOWN AS HAVING MORE IMPACT ON CUSTOMERS AND ON THE EMPLOYEES BECAUSE THERE IS A LOT MORE RETAIL SHOPS, YOU KNOW, VAGABOND, CYPRUS, BOUTIQUES IN THE MODUS BUILDING WHERE THE EMPLOYEES ARE GOING TO BE DIRECTLY AFFECTED BY THIS. IF THE DIRECTION OF THE COUNCIL IS TO MOVE FORWARD ON THIS, MY ALTERNATIVE SUGGESTION WOULD BE WE IMPLEMENT IT IN PHASE ONE AND PHASE TWO.
>> I AGREE WITH WHAT BRIAN WAS SHARING.
I THINK THE INTRODUCTION OF THESE TWO NEW PARKING LOTS IS A BETTER TIME TO CONSIDER THIS AND TO LOOK AT ADDING IT. AND I THINK PROVIDING THE FIRST TWO HOURS FOR FREE ADDRESSES BLAISE'S CONCERN FROM THE PERSPECTIVE THAT IF YOU PARK ON THE STREET, THAT IS SOMETHING THEY'RE DOING TODAY IS EVERY HOUR AND 50 MINUTES BECAUSE THEY HAVE A TWO- HOUR LIMIT ON THE STREET, YES, WE TOOK AWAY SOME OF THE STREET PARKING, BUT THAT WAS TWO- HOUR PARKING.
AND IF WE HAVE THE FIRST TWO HOURS FOR FREE, THEN IT IS -- I DON'T SEE HOW THAT'S WORSE OR DIFFERENT FROM WHAT THEY HAD BEFORE WITH ONSTREET PARKING FOR TWO HOURS.
[00:50:03]
BUT THE BENEFIT IS IF SOMEBODY DOES WANT TO USE THIS BEYOND THE TWO HOURS, THEY CAN AUTOMATICALLY RENEW IT FROM THEIR PHONE WITHOUT HAVING TO PUT THEIR KEYS IN A BASKET AND GO OUT AND MANUALLY MOVE EVERY VEHICLE. THEY JUST RENEW ON THE APP AND I'M GOING TO LEAVE MY CAR THERE AND KEEP DOING WHAT I'M DOING AND SHOPPING OR WORKING OR WHATEVER THEY'RE DOING. AND SO I -- I THINK THIS IS A GOOD TIME TO LOOK AT THIS AND TO ADD THIS WITH THE TWO HOURS, THE FIRST TWO HOURS FOR FREE WHERE WE MATCH WHAT THEY ALREADY HAVE ON THE STREET.>> COUNCILMAN REAGAN, WE CAN VISIT WITH THE VENDOR TO SEE IF THERE IS A WAY TO DO SOMETHING SO THESE EMPLOYEES AND THE RESTAURANTS AND THE RETAIL CENTERS, MAYBE THERE IS A MONTHLY SOMETHING WE CAN DO THAT IS A MUCH REDUCED RATE.
>> I WAS LOOKING IT UP, WHILE YOU WERE TALKING, THEY ACTUALLY HAVE A MONTHLY RATE BUSINESS OWNERS CAN PURCHASE FOR THEIR EMPLOYEES AT A SUBSTANTIALLY DISCOUNTED RATE. SO THAT WOULD SOLVE THAT PROBLEM.
POTENTIALLY. >> IT WOULD ALLEVIATE IT.
WHAT I WOULD SUGGEST, AND THIS IS THE DISCUSSION WITH US, BUT I THINK GREAT INPUT WOULD BE FROM THE DOWNTOWN ASSOCIATION AND FROM A -- JUST A MASSIVE, YOU KNOW, HEY, WHAT ARE THE BUSINESSES AND THE STAKEHOLDERS, WHAT ARE THEIR THOUGHTS ON THIS? BECAUSE WE CAN TALK FROM OUR PERSPECTIVE, BUT REALLY WE'RE TALKING ABOUT IS THIS GOING TO HELP OR HURT DOWNTOWN BUSINESSES? AND AT THE END OF THE DAY, THAT'S MY LINE. AND SO, THAT'S REALLY AT THE END OF THE TAKE, IF 90% OF ALL THE BUSINESSES SAY, YEAH, GO FOR IT, MY ARGUMENTS ARE MOOT AND I'M ALL FOR IT. IF THERE IS MASSIVE CONCERN FROM THE DOWNTOWN BUSINESS OWNERS, THEN THAT'S WHERE I'M GOING TO GO, ALL RIGHT, LET'S PAUSE THIS AND PUSH IT BACK.
>> BUSINESSES I'VE TALKED TO, IT IS A MIXED BAG.
>> SOME ARE FOR IT, SOME ARE LUKEWARM.
>> NO ONE HAS SAID NO. BUT PEOPLE HAVE NOT BEEN NECESSARILY EXCITED ABOUT IT EITHER.
>> BUT THE BALANCE ON THAT IS THE CITY IS RESPONSIBLE FOR MAINTENANCE.
>> NOT A PRIVATE PARKING LOT. THIS IS A PUBLIC PARKING LOT THAT THE TAXPAYERS HAVE TO MAINTAIN.
>> THAT'S CORRECT. THE OTHER THING TO THINK ABOUT, IS THERE OTHER LOTS IN DOWNTOWN THAT ARE PRIVATELY OWNED THAT PEOPLE PAY MONEY TO PARK ON? AND IF NOW WE ADDED 200 SPOTS THAT ARE FREE, THOSE BUSINESSES MAY LOSE THEIR INCOME STREAM. YOU PAY IF YOU CAN PARK ACROSS THE STREET FOR FREE. SO WE'RE TRYING -- WHEN WE DO THAT, WE NEED TO AVOID HURTING BUSINESSES THAT ARE CURRENTLY MAKING A BUSINESS OFF OF PROVIDING PARKING.
>> ONE QUESTION THAT MIGHT BE WORTH ASKING THE VENDOR, AND I DON'T KNOW IF THAT'S AVAILABLE ON THE WEBSITE, BUT IF THEY CAN DO THIS BUSINESS RATE, IF YOU WILL, IS IT POSSIBLE FOR A BUSINESS TO BE ABLE TO OFFER TO VALIDATE PARKING TO WHERE YOU ACTUALLY ARE DRAWING, ENCOURAGING PEOPLE TO COME TO YOUR BUSINESS?
>> AND PAY FOR YOUR PARKING. I DON'T KNOW, THAT MIGHT BE A STEP TOO FAR AS FAR AS -- I THINK IT IS WORTH ASKING IF THAT CAPABILITY EXISTS, IT MIGHT ATTRACT THEM.
IF FOR NO OTHER REASON, THAN TO JUST GET YOUR PARKING VALIDATED, BUT I KNOW THERE IS BUSINESSES DOWNTOWN THAT WOULD DO THAT JUST TO GET THEM IN THE STORE.
>> WE CAN ASK THE QUESTION, IT IS TECHNOLOGY, SO THE ANSWER SHOULD BE YES.
BUT THERE ARE CONSTRAINTS AND IT IS NOT OUR SYSTEM, SO WE NEED TO ASK. WE CAN ASK THE QUESTION.
>> CONCEPTUALLY I'M NOT OPPOSED.
I JUST DON'T FEEL LIKE WE HAVE ENOUGH INFORMATION YET TO -- I WOULD LIKE TO SEE SOME MORE RESEARCH ON WHAT THE SCENARIOS COULD BE ONSTREET VERSUS OFFSTREET, LOT ONLY, WHAT IS THE LONG- TERM PARKING POSSIBILITIES? I THINK -- DOESN'T MAKE ANY SENSE TO ME TO MAKE A PAID PARKING LOT AND LEAVE THE STREET FREE. I THINK YOU MAKE THE STREET PARKING PROBLEM WORSE, RIGHT? EVERYBODY IS GOING TO WANT TO PARK OUT THERE WHERE IT IS FREE.
I DON'T KNOW HOW YOU DO A LOT AND NOT THE STREET, IF WE ACHIEVE THE GOAL OF WANTING TURNOVER IN THE DOWNTOWN AREA. SO I'M NOT OPPOSED CONCEPTUALLY, I DON'T THINK THERE IS ENOUGH INFORMATION TO FULLY GRASP WHAT THE DOWNSTREAM EFFECTS WILL BE.
>> I WOULD LIKE TO SEE A LITTLE BIT MORE INFORMATION ABOUT THAT.
>> AND THE QUESTION TODAY ISN'T DO I HAVE AUTHORITY TO ENTER INTO A CONTRACT, IT IS FROM A POLICY STANDPOINT, IS THIS SOMETHING YOU GUYS EVEN WANT TO CONSIDER. WHAT I'M HEARING FROM MAJORITY OF THE COUNCIL IS LET'S TALK MORE ABOUT THIS, LET'S MOVE FORWARD WITH THIS PERHAPS, I'M ALSO HEARING WE NEED TO ENGAGE THE STAKEHOLDERS MORE, NO DOUBT ABOUT IT. IT IS BRAND- NEW, THIS CONCEPT, AND COUNCIL MEMBER BEARD, TO YOUR POINT, IN A PERFECT SYSTEM, EVERYBODY FOLLOWS THE LAW AND YOU DON'T NEED ANY OFFICERS OR --
>> BRIAN HAS AN IPHONE 3. I'M NOT SURE HE'LL BE TABLE
[00:55:02]
TO DO THAT.>> I'M THINKING OF SOMETHING THAT I MENTIONED EARLIER.
>> I THINK I GOT THE DIRECTION THAT IS NECESSARY ON THIS.
WITH RESPECT TO COUNCIL'S POSITION ON THIS, WHAT I'M HEARING THE BALANCE OF THE COUNCIL SAY IS GENERALLY IN FAVOR, DO MORE RESEARCH, ENGAGE THE STAKEHOLDERS.
WHEN WE COME BACK WITH AN ORDINANCE, PERHAPS, WE NEED TO HAVE THIS FULL DEBATE FROM A CONCEPT STANDPOINT.
>> FIREMAN'S RELIEF PENSION FUND. DO WE NEED TO TAKE A BIO BREAK?
I GOT MY CHAIR FIXED NOW. BUT DON'T GET UP. IT MAY BREAK AGAIN. TEN MINUTES.
>> OKAY. JULIE HAMMER, OUR DIRECTOR OF LIBRARY SERVICES CAME UP TO ME AND ASKED SHOULD COUNCIL IN THIS? ABSOLUTELY YOU SHOULD.
PART OF THE TRADE- OFF OF GOING FROM THEIR FIRST -- HER FIRST ITERATION OF SERVICE MODEL FOR DANIELS AND CHAVEZ LIBRARIES IS A REDUCTION IN OUR STANDARD HOURS OF OPERATION.
SO THEY'RE STILL OPEN. IT IS FIVE DAYS A WEEK.
SO, IF WE GO THROUGH THIS BUDGET PROCESS AND GET TO JULY AND WE SEE THAT THE ECONOMY IS DOING WELL, AND THOSE SORTS OF THINGS, I THINK THE DIFFERENCE MAY HAVE BEEN $100,000, THIS IS OFF THE TOP OF MY HEAD, JULIE, A SIX FIGURE NUMBER, BUT BEGINS WITH A 1, WE COULD RESTORE THOSE OTHER POSITIONS TO HER ORIGINAL FUNDING PLAN FOR THOSE TWO SATELLITE LIBRARIES AND HAVE NORMAL -- WHAT WE CONSIDER TRADITIONAL LIBRARY HOURS.
SOMETHING TO THINK ABOUT, I WAS JUST TRYING TO PRESENT COUNCIL THE MOST CONSERVATIVE VERSION. I APPRECIATE JULIE COMING UP AND SAYING MAKE SURE THEY'RE AWARE OF THIS TOO.
SO THANK YOU. FIREMAN'S RELIEF AND RETIREMENT FUND. THIS -- BY WAY OF BACKGROUND, THE PENSION FUND, I'M JUST GOING TO CALL IT THE PENSION FUND, IS THE CITY'S FUNDED RETIREMENT PLAN FOR OUR FIREFIGHTERS.
IT IS THE ONLY PLAN THAT THE CITY HAS FOR OUR FIREFIGHTERS. WE ARE A DIFFERENT PLAN. ABILENE WITH ANY OTHER CITIES IN TEXAS HAVE THIS TYPE OF PENSION PLAN FOR THEIR FIREFIGHTERS. AND THEY'RE GOING THROUGH STRESS ACROSS THE STATE OF TEXAS.
MANY CITIES HAVE ALREADY DONE WHAT WE'RE TALKING ABOUT -- TALK ABOUT DOING. SOME ARE IN THE PROCESS OF THINKING ABOUT IT.
SOME DON'T HAVE A PLAN. BUT ARE BEING FORCED TO WORK TOWARD A PLAN. I WILL SAY THIS, ONE OF THE FIRST QUESTIONS I EVER ASKED COUNCIL DURING THE INTERVIEW WAS DID YOU KNOW THAT YOU'RE UNFUNDED LIABILITY OF THE PENSION WAS, YOU KNOW, A VERY LARGE NUMBER? I REMEMBER THE TIME, 40% SOMETHING, FINAL LIABILITY.
AND IT WAS NOT SOMETHING THAT WAS ON OUR RADAR SCREEN AS A LEADERSHIP TEAM AND THE COUNCIL.
IT HAS BEEN NOW. AND IT HAS BEEN FOR A COUPLE OF YEARS. AND WE HAVE BEEN WORKING WITH THE PENSION BOARD AND THE FIREFIGHTERS TO TRY TO ADDRESS THAT, INCREASE CONTRIBUTIONS THROUGH I WOULD SAY MORE INDUSTRY STANDARD AND CONSERVATIVE INVESTMENT ASSUMPTIONS AND RETURN PROJECTIONS, ACTUARIAL ASSUMPTIONS, AND WE'RE GETTING -- WE'RE WORKING THROUGH THE PROBLEM, BUT IT ISN'T ENOUGH. AND IN SOME WAYS IF YOU'RE TRYING TO MOVE A BOULDER UP A HILL, YOU DON'T HAVE AN INITIAL PUSH YOU WON'T GET THE BOULDER UP THE HILL, YOU DON'T HAVE ENOUGH FORCE TO DO IT.
>> WE'RE GOING TO HEAR THE TERM UNFUNDED LIABILITY A LOT.
WOULD YOU EXPLAIN WHAT THAT MEANS?
>> I WILL. I GOT A SLIDE THAT DOES THAT, YES, SIR. THE PENSION BENEFITS THAT ARE CREWED FOR ACCRUED FOR THE FIREFIGHTERS, WE DON'T HAVE A CHOICE, WE HAVE TO PAY THEIR PENSION. THIS SAY REALLY IMPORTANT QUESTION. WE CAN PUT IT OFF AND PUT IT OFF AND PUT IT OFF AND THEN HAVE A REALLY DIFFICULT TIME MAKING ACTUAL CURRENT PAYMENTS.
BECAUSE IF THE RETIREMENT FUND CAN'T FUND THE BENEFITS,
[01:00:01]
THEN THE GENERAL FUND MUST. FOR OUR FIRST PENSION BOARD, GOVERNED BY A BOARD OF DIRECTORS, THREE FIREFIGTERS, THE MAYOR, TWO COMMUNITY MEMBERS, CITY DIRECTOR OF FINANCE, SERVES AS BOARD SECRETARY- TREASURER, OCTOBER 23RD, 2023, THE MOST RECENT ONE THEY HAVE, THOUGH THEY JUST COMPLETED ONE IN FURTHERANCE OF THIS EXERCISE WE'RE GOING TO TALK ABOUT, BUT I DIDN'T HAVE THE NUMBERS WHEN I PUT THE SLIDE TOGETHER, ABOUT THOUGHT ACTUARIAL REPORT FOR THE FUNDED RATIO OF 45.3%. WHAT DOES THAT MEAN? THAT MEANS THAT IF ALL BENEFITS -- IF ALL BENEFITS AND OBLIGATIONS CAME DUE, RIGHT, THERE IS ONLY ENOUGH MONEY TO COVER 45% OF THOSE BENEFITS, TOTAL BENEFITS.>> EVERYONE RETIRED ALL AT THE SAME
TIME. >> IF EVERYTHING WAS DUE, CORRECT. SO IS THAT EVER GOING TO HAPPEN? OF COURSE NOT, RIGHT? HOWEVER, IT IS A SIGN OF HEALTH AND GENERALLY YOU'RE LOOKING AT 75, 80, 90% WE CONSIDER A SOLIDLY FUNDED PLAN.
WE'RE WELL BELOW THAT NUMBER. IT IS A CONCERN.
IT IS A CAUSE OF CONCERN. OUR TOTAL UNFUNDED LIABILITY IS ALMOST $72 MILLION. BASED OFF THIS STUDY.
I THINK IT HAS GONE DOWN A LITTLE BIT, MAYBE.
I HAVEN'T SEEN THE NUMBERS YET. COUNCILMAN YATES, I DON'T KNOW IF YOU SAW --
>> LET'S SAY 72 MILLION. I'VE WORKED COOPERATIVELY WITH THE LEADERSHIP OF THAT BOARD OVER THE LAST SEVERAL YEARS AND THEY HAVE WORKED COOPERATIVELY WITH ME TO ADDRESS THE STRATEGY LEVERS THAT WE CAN PULL, WE HAVE REDUCED BENEFITS, THERE IS A SECOND TIER, WE INCREASED CONTRIBUTIONS, THOSE ARE THE TOOLS YOU TYPICALLY HAVE.
THEY HAVE DONE BETTER ACTUARIAL ASSUMPTIONS, INVESTMENT RETURNS ARE MORE STANDARD THAN WHAT THEY WERE.
BUT ALL THAT CULMINATED IN THE REQUEST WE MADE TO THE PENSION REVIEW BOARD IN THE STATE OF TEXAS. THIS IS A BOARD THAT RUNS NOT REGULATORY AUTHORITY, BUT CERTAINLY SUPPOSED TO BE IN CHARGE OF THESE PENSION BOARDS. RIGHT RULES, GUIDELINES THEY HAVE TO FOLLOW, BUT THEY HAVE A HARD TIME MAKING PEOPLE DO THINGS UNTIL THE PENSION FUND HITS A CERTAIN THRESHOLD OF UNFUNDEDNESS AND POOR HEALTH AND THEN THEY CAN -- THEN THEY CAN START ENFORCING SOME THINGS. WE'RE NOT THERE YET.
WE KIND OF SKIRTED THAT FOR SEVERAL YEARS NOW.
THE OUTCOME OF THAT PROCESS WAS INFORMATIVE. THE PENSION REVIEW BOARD SAID THIS IS ONE OF THE WORST FUNDED PLANS WE HAVE SEEN.
I DISAGREE WITH THAT. I HAVE SEEN THE OTHER PLANS AND THERE ARE FUNDS -- THERE ARE PLANS THAT ARE WORSE FUNDED THAN OURS. PART OF THEIR CONCERNS WERE THINGS THAT WE KNEW WE WERE DOING BECAUSE WE'RE TRYING TO AVOID HITTING THAT POINT WHERE THE STATE FORCES AND MANDATES THINGS. WE'RE WORKING TOGETHER ON THIS AND SO THE BOARD AND MYSELF AND BOARD LEADERSHIP SAT DOWN ON THE WAY HOME, AND WE TALKED ABOUT STRATEGIES FROM AUSTIN ON HOW WE CAN ADDRESS AND ADDRESS THE CONCERNS THAT THE PENSION REVIEW BOARD HAD AND RECENTLY WE HAD SOME OTHER DISCUSSIONS ABOUT HOW DO WE JUST SOLVE THIS PROBLEM? BECAUSE WE NEED TO BE SERIOUS ABOUT SOLVING IT.
YOU GOT TWO DESIRABLE CONDITIONS, THE BOARD WANTS TO FIX THIS, THE CITY MANAGEMENT WANTS TO FIX THIS AND THE COUNCIL MEMBERS I CAN GUARANTEE PROBABLY WANT TO FIX THIS ISSUE TOO.
SO HOW DO WE DO THAT? LET'S LOOK AT WHAT WE'RE ACTUALLY DOING RIGHT NOW. SO CURRENTLY THE CITY CONTRIBUTES 21. 25% OF FIREFIGHTER GROSS WAGES TO THE PENSION FUND. FROM A TEAM PERSPECTIVE, FOR EVERYBODY ELSE, WE'RE ONLY -- 11%, 12%? 10. 25%, 10 SOMETHING AND CHANGE, LITTLE OVER
10%. >> LITTLE OVER 10% IS WHAT WE
DO OR THEY DO? >> THE CITY CONTRIBUTES TO THE TEAM PENSION SYSTEM.
IT IS A COMPLETELY DIFFERENT SYSTEM, DIFFERENT ACTUARIALS.
EMPLOYEES CONTRIBUTE 7%, THE CITY PUTS IN 10%, BECAUSE OF CHANGES WE MADE TO THE PLAN YEARS AGO, WE'RE STILL SEEING THE BENEFIT OF THAT, BECAUSE THEORETICALLY OUR PENSION CONTRIBUTIONS SHOULD BE 14%.
>> CONCEPTUALLY FIREFIGHTERS ACROSS THE STATE HAVE AN INDEPENDENT RETIREMENT SYSTEM FROM EVERY OTHER MUNICIPAL
THIS IS A STAND ALONE PLAN, INDEPENDENT FROM EVERYTHING ELSE.
FIREFIGHTERS PUT IN 15.2%. THAT'S 36.
45% TOTAL. >> CONTRAST THAT TO TMRS AGAIN.
>> ASSUMING THE TOTAL ANNUAL PAYROLL OF 18. 2 MILLION, TOTAL CONTRIBUTIONS EQUALS OF $6. 6 MILLION ANNUALLY. THERE WAS A LOT MORE EMPLOYEES ON THE PLAN THAN THERE ARE FIREFIGHTERS, SO THE TOTAL DOLLAR AMOUNTS ARE
[01:05:01]
MORE, BUT THE PERCENTAGE OF CONTRIBUTION IS LESS. SO THE QUESTION HAS ARISEN, WHAT THE ANNUAL DEBT SERVICE WOULD BE IF WE FULLY FUNDED THE PENSION LIABILITY WITH THE PUBLIC DEBT RESTRUCTURING.RATHER THAN TRYING TO PUSH THIS UP THE HILL, LET'S MOVE THE STONE ON TOP OF THE HILL. HOW DO WE -- WHAT WOULD THAT LOOK LIKE.
OTHER CITIES HAVE DONE THIS VERY, VERY THING.
SO, I REQUEST THE DEBT SERVICE NUMBERS FROM HILL TOP SECURITIES IN OCTOBER OF '24. AND AT THE TIME, THE TEN- YEAR TREASURY RATE HAS GONE UP, NOT DOWN, SO THE RATES WILL BE A LITTLE BIT HIGHER THAN WHAT THEY ARE NOW, STILL WITHIN THE 75 BASIS POINTS OF WIGGLE ROOM FOR SURE. BUT THE TOP IND END OF -- YOU GOT 6. 6 MILLION IN CONTRIBUTIONS.
THAT POTENTIAL DIFFERENCE COLUMN ON THE FAR RIGHT IS THE DIFFERENCE BETWEEN THE DEBT SERVICE AND WHAT WE'RE PAYING NOW.
SO YOU CAN SEE IN ALL SCENARIOS, WE ACTUALLY ARE PAYING LESS MONEY IF WE FULLY FUND THE LIABILITY OF THE PENSION. DOESN'T MEAN WE GET A NOT MAKE CONTRIBUTIONS THOUGH. SO WE STILL HAVE TO MAKE CONTRIBUTIONS. THE QUESTION IS, WHAT CAN WE REDUCE OUR CONTRIBUTIONS TO SO WE KNOW WE HAVE TO SOLVE THIS PROBLEM. IF FUNDING THE DEBT -- THE LIABILITY FULLY ON THIS THING, CAN WE SAVE MONEY THROUGH THE PROCESS BY RECOGNIZING WE HAVE THIS PROBLEM, WE NEED TO FIX IT, MONEY IS THE ONLY THING THAT SOLVES IT, FUND IT, AND THEN WE CAN HAVE A CONTRIBUTION RATE THAT MAINTAINS THIS OVER TIME.
AND YOU CAN SEE THE DIFFERENT COMBINATIONS. 50, 60, 70 MILLION.
IF YOU LOOK AT TRYING TO FUND 80% OF THAT, 90% OF THAT, EVEN 100%, IN ALL CASES YOU SAVE MONEY.
SO, WE THINK IT IS APPARENT THERE IS VALUE IN FURTHER EXPLORING THIS, JUST FROM A NUMBERS EXERCISE. AND THERE ARE SEVERAL QUESTIONS THAT REALLY NEED TO BE ANSWERED BY THE BOARD AND THE CITY, SO WE ASKED FOSTER & FOSTER TO EXPLORE THESE QUESTIONS. IN GENERAL, UPDATE THE PENSION LIABILITY BASED ON RECENT POSITIVE INVESTMENT RETURNS, THEY JUST COMPLETED THAT EXERCISE AND THE LIABILITY HAS GONE DOWN A LITTLE BIT. WHICH IS GOOD.
BUT DIDN'T GO DOWN A LOT, INDICATIVE OF THE PROBLEM.
WE CAN'T MANAGE OUR WAY OUT OF THIS PROBLEM.
DETERMINE WHAT CONTRIBUTIONS WILL BE NECESSARY TO FUND THE PENSION WITH SOUND -- THIS IS IMPORTANT -- SOUND AND GENERALLY ACCEPTED INVESTMENT ASSUMPTIONS TO AN 80 OR 90% LEVEL IF PENSION IS REDUCED. I'M JUST THROWING IDEAS OUT. DETERMINE WHAT THE CONTRIBUTION WOULD BE TO ACHIEVE THAT NUMBER ONE GOAL, WHICH IS REALLY NUMBER TWO HERE, OKAY.
AND ALSO REMOVE THE TWO TIER PENSION SYSTEM.
THIS IS A QUESTION THE BOARD HAS.
WHAT IF WE GO BACK TO ONE BENEFIT STRUCTURE INSTEAD OF TWO BENEFIT STRUCTURES. TIER ONE IS A RICHER BENEFIT, TIER TWO IS A LESSER BENEFIT, CONCEPT BEING YOU HAVE ONE SYSTEM, EVERYBODY GO BACKS TO THE TIER ONE SYSTEM. YOU DO ALL THAT AND THEN ACHIEVE -- TO ACHIEVE NUMBER ONE AND NUMBER TWO, BUT ALL NEW FIREFIGHTERS ARE TMRS MEMBERS. IF THE CITY KNOWS IT COSTS US LESS TO DO TMRS IN ALL CASES YOU SET A STOP DATE, NOT THE DATE IT IS FUNDED, TWO OR THREE YEARS IN THE FUTURE, ABOUT UP AT SOME POINT IN TIME YOU SET A START DATE, ALL NEW FIREFIGHTERS BECOME A TMRS MEMBER.
WHAT IS THE NET EFFECT OF THAT? BY -- IF YOU JUST LOOK AT 20- YEAR RETIREMENT, HISTORICALLY THE FIRE PENSION PAYS A BETTER RETIREMENT BENEFIT.
BY THE TIME YOU GET TO 25 YEARS OF EMPLOYMENT, THE TMRS SYSTEM IS ON PAR. IF FAR EXCEEDS THE BENEFIT.
THAT'S JUST ON AVERAGE. THERE ARE LIKELY THAT WE'RE GOING TO GET TO.
ALL OF THIS HAS TO BE DRIVEN BY ACTUARIAL MATH AND SCIENCE.
THERE ARE A LOT OF THINGS IN THIS THAT ONE WOULD MAKE -- THAT SEEM LIKE COMMON SENSE.
ACTUARIAL NUMBERS DON'T ALWAYS -- THERE IS A REASON WHY YOU HAVE TO STUDY A LOT TO BECOME AN ACTUARY.
THERE IS A DIFFERENT CERTIFICATION PROCESS AND TESTING PROCESS FOR ALL THAT, EXTREMELY DIFFICULT SCIENCE. AND WE NEED THOSE PEOPLE TO HELP US UNDERSTAND THE FUTURE CASTING ASSOCIATED WITH THIS. REALLY WHAT WE'RE ASKING, WHAT I'M ASKING COUNCIL TO DO IS -- AND HAVE A POLICY DISCUSSION ON IS HOW DO WE ADDRESS THE FIRE PENSION LIABILITY? KNOWING THAT WE HAVE TO PAY FOR THIS ANYWAYS, WE CAN'T MANAGE OUR WAY OUT OF THIS PROBLEM. WE HAVE AN EXTREME LIABILITY, $72 MILLION, WE HAVE TO FUND THAT.
[01:10:03]
BY LEVERAGING DEBT, IS IT NOT -- IS IT NOT A BETTER WAY MAYBE TO DO THAT AND LET'S EXPLORE -- LET'S PLAY THIS OUT, SEE WHAT HAPPENS. THIS IS A WAY TO PERHAPS MANAGE THAT -- MANAGE OUR WAY OUT OF THIS PROBLEM AND USED AS A TOOL.AND IT IS A TOOL TO SOLVE A PROBLEM.
SO, THAT'S -- THAT'S WHERE WE ARE. AT THIS POINT AND TIME, COUNCIL MEMBER YATES, YOU SERVE ON THAT BOARD. YOU JUST HAD THIS MEETING.
>> I DO HAVE THE HONOR, THE MAYOR APPOINTED ME TO SERVE AS THE COUNCIL'S REPRESENTATIVE ON THIS BOARD. IT IS A DIFFICULT SITUATION.
THERE WERE DECISIONS MADE IN THE PAST THAT DID NOT -- THAT WERE BASED ON ASSUMPTIONS THAT DID NOT PROVE TO BE TRUE AND SO THAT HAS OVER DECADES PUT US IN THIS SITUATION THAT WE'RE IN. IT IS NOT AT ALL USEFUL TO REVISIT THOSE OR POINT FINGERS. IT IS WHAT DO WE DO NOW? ONE OF THE OVERRIDING FACTORS IS WE WANT TO TRY TO MAKE SURE THAT WE'RE, FIRST OF ALL, DOING NO HARM TO OUR FIREFIGHTERS. WE DON'T WANT TO BALANCE THESE BOOKS ON THEIR BACKS. BUT THERE ARE SEVERAL ASPECTS OF THE CURRENT SYSTEM AS IT EXISTS WITH THE TWO TIER IS UNFAIR, BUT IT IS NOT INHERENTLY UNSOUND AS FAR AS FINANCIALLY. BUT THERE IS A CAP ON BENEFITS RIGHT NOW. THAT CAP, I THINK, IF WE LOOKED AT IT, I THINK IT AFFECTS FOUR PEOPLE IN THE FIRE DEPARTMENT RIGHT NOW.
BUT AS WAGES RISE, WITH JUST GENERAL INCREASES, ANNUAL INCREASES, THAT CAP IS NOT INDEXED TO MOVE, AND PRETTY QUICKLY YOU'RE GOING TO CAP THE BENEFITS. THE AMOUNT THAT THE FIREFIGHTERS ARE CONTRIBUTING FROM THEIR PAYCHECK IS TWICE WHAT TMRS IS.
AND WE'RE RIGHT AT THE POINT WHERE WE CAN'T ASK THEM TO CONTRIBUTE MORE TO FIX THIS PROBLEM WITHOUT THEM ENDING UP CONTRIBUTING MORE OVER THEIR CAREER THAN THEY WILL EVER REALIZE IN A PENSION BENEFIT.
AND THE RESULTS OF THAT IS YOU WILL GET PEOPLE TO FIGURE THAT OUT AND OPT OUT. AND THAT MAKES THE FINANCIAL SITUATION OF THE FUND WORSE. IT IS A CHALLENGE ACROSS THE STATE, ALL THESE FIREFIGHTER INDEPENDENT PLANS, IN DOZENS OF CITIES, BECAUSE THEY'RE SMALL AND INDEPENENT, THEY ARE SENSITIVE TO MARKET FORCES, DISRUPTIONS, THINGS THAT HAPPEN, UNFORESEEN OCCURRENCES THAT EVEN THOUGH YOU'RE NOT PLANNING ON THEM, THEY'RE GOING TO HAPPEN. THOSE THINGS ARE GOING TO HAPPEN. AND THE EFFECT ON THAT IS MUCH -- IT IS MAGNIFIED BECAUSE THEY HAVE LESS ABILITY TO ABSORB THAT SHOCK. WHEN YOU COMPARE IT TO SOMETHING LIKE THE TEACHERS RETIREMENT OR THE TMRS THAT THE REST OF OUR CITY EMPLOYEES AND OUR POLICE DEPARTMENT PARTICIPATES IN.
SO I THINK WHAT YOU END UP WITH IS THE FIREFIGHTERS ARE -- WE CAN'T -- WE CAN'T ASK ANYMORE OUT OF THEM, AND THEY'RE PAYING A LOT AND NOT REALLY REALIZING AS MUCH BENEFIT AS WE COULD WITH A DIFFERENT APPROACH. AND SO, THE NEED TO CHANGE THIS, THE CITY IS ON THE HOOK FOR THIS. THIS IS NOT AN OPTIONAL DISCUSSION. THE OPTION IS HOW DO WE WANT TO HANDLE IT, AND SO, YES, I THINK WHOLEHEARTEDLY WE NEED TO ADDRESS THIS, AND I THINK THAT THIS APPROACH IS THE BEST MOST SOUND WAY TO DO IT, THE DETAILS CERTAINLY ARE GOING TO MATTER AND THERE IS SEVERAL NUANCES THAT YOU COULD CHOOSE AS YOU IMPLEMENT THIS. BUT OVERALL, IT IS -- THE TIME IS NOW. IF WE WAIT, THIS JUST GETS WORSE.
>> IT GETS WORSE. YOU SAID SOMETHING VERY IMPORTANT, I'LL SAY IT A DIFFERENT WAY.
IN ANY SORT OF INVESTMENT SCHEME OR PENSION SCHEME, I GIVE YOU $3, I'M GOING TO EXPECT TO GET $4 BACK. AT LEAST THE $3.
RIGHT? BUT I WOULD LIKE TO MAKE SOME MONEY, SO I WOULD LIKE TO HAVE $4 OVER TIME.
THE SYSTEM WE HAVE SET UP IS THE FIREFIGHTERS GIVE US $3, WE'RE ONLY GOING TO GIVE THEM BACK A DOLLAR. WE GO, IT IS A GREAT DEAL.
IT IS A HORRIBLE DEAL, RIGHT? AND COUNCIL MEMBER YATES IS RIGHT, AT SOME POINT IN TIME, WE'RE GOING TO LOSE FIREFIGHTERS BECAUSE THEY'RE GOING TO SAY I'M GOING TO WORK FOR 20 YEARS, SERVING THE PEOPLE, PUTTING MY LIFE ON THE LINE AND I'M NOT GOING TO GET A BENEFIT FOR IT, I CAN'T TAKE CARE OF MY FAMILY AFTERWARDS. WE GOT TO CORRECT THE SYSTEM.
HOW WE GOT HERE TO YOUR POINT, 100%, I THINK BOTH PARTIES ARE AT FAULT.
I THINK THE BOARD IS AT FAULT. I THINK THE CITY IS AT FAULT
[01:15:03]
FOR NOT PUTTING PRESSURE TO ADDRESS THESE THINGS SOONER WHEN THEY SAW THE INVESTMENT ASSUMPTIONS AND RETURNS.AND THIS GOES BACK DECADES. 20, 30, 40 YEARS AGO.
WE NEED TO FOCUS, THE TIME IS NOW TO SOLVE THIS PROBLEM.
THANK YOU FOR THAT INPUT, COUNCIL MEMBER
YATES. >> I'M REMINDED OF HOW WE GOT INTO THE PLACE WE GOT TO WITH STREETS.
>> 20 YEARS AGO, PREVIOUS COUNCILS AND WHOEVER YOU WANT TO PICK, KEPT KICKING THE CAN DOWN THE ROAD AND THE HOLE GOT DEEPER AND DEEPER. I FEEL LIKE THAT'S WHAT WE'RE IN, IT IS JUST I THINK A LITTLE BIT EASIER OF A RECOVERY THAN, YOU KNOW, WHAT WAS THE NUMBER ON -- $300 SOMETHING MILLION IS WHAT IT WAS GOING TO TAKE.
WE'RE NOT IN THAT POSITION AND IT WILL TAKE A WHILE TO GET TO THAT POSITION, BUT THAT'S WHERE WE'RE GOING, RIGHT, IF WE DON'T DO SOMETHING.
AND I DON'T WANT TO GET TO THAT POINT.
DO YOU KNOW -- TWO QUESTIONS. DO YOU KNOW WHAT THE THRESHOLD IS FOR THE TEXAS PENSION BOARD'S INVOLVEMENT? WHAT DO THEY DECLARE IT TO BE UNHEALTHY ENOUGH TO INTERVENE?
>> IT GOES BY THE AMORTIZATION PERIOD, OVER 30 YEARS FOR TWO YEARS IN A ROW OR SOMETHING. THERE IS A LIST, I CAN GET THAT TO YOU IF I START SAYING THINGS, I'M GOING TO GET IT WRONG. I DON'T KNOW OFF THE TOP OF MY HEAD. BRENT BAKER WOULD.
IT IS ALSO CHANGING. THEY'RE REDUCING THOSE -- MY UNDERSTANDING IS THEY'RE TALKING ABOUT MAYBE MAKING THOSE MORE STRINGENT SO WE MAYBE PUT THERE, NEXT YEAR, THE YEAR AFTER NEXT. BECAUSE THE PENSION REVIEW BOARD UNDERSTANDS IT IS A STATE WIDE PROBLEM AND THEY'RE ACTIVELY TRYING TO FORCE IT TO BE CORRECTED.
>> THEY'RE MOVING FROM A 30- YEAR TO 25 TO 20 AMORTIZATION.
THEY'RE CHANGING IT FROM A TWO- YEAR THRESHOLD TO A ONE- YEAR THRESHOLD AND THERE IS ALSO A FUNDING LEVEL RATIO THEY'RE LOOKING AT.
>> WE'RE ON A COLLISION COURSE WITH THE MORE STRINGENT REGULATIONS, WHEN THOSE GO INTO EFFECT, AND I WANT TO SAY THAT'S NEXT YEAR, MARJORIE, NEXT YEAR IS WHEN THEY START TO TIGHTEN DOWN AND IT TIGHTENS DOWN OVER I THINK A TEN- YEAR PERIOD.
WE WILL BE FORCED TO GO TO A -- THE PRBA FOR A REVIEW.
THAT'S THE POINT AT WHICH WE DON'T GET TO PICK HOW TO FIX IT. THE STATE WILL HELP US, AND WE DON'T WANT THAT HELP. THEY WILL MAKE CHOICES INSTEAD OF US MAKING CHOICES.
BASIS, WHAT IS THE NUMBER? IS IT 70% FUNDED? 80% FUNDED? WHAT IS THE HEALTHY TARGET?
>> I THINK -- I THINK 80% FUNDED RATE IS GENERALLY HEALTHY. I LIKE 90% BECAUSE --
>> THAT'S BECAUSE YOU'RE CITY MANAGER.
>> I'LL PUT IT IN CONTEXT THERE ARE MEN AND WOMEN THAT ARE RELYING ON THIS FOR THEIR FUTURE, THE FUTURE OF THEIR FAMILY AND THEIR CHILDREN. THIS IS A SACRED DUTY WE HAVE TO MAKE SURE THE PENSION IS THERE FOR THESE MEN AND WOMEN. WE HAVE AN OBLIGATION TO DO THIS. IF YOU DID 100%, 72 MILLION AND TOOK OUT ALL THE LIABILITY, RIGHT, YOU WOULD BE ABLE TO REDUCE YOUR CONTRIBUTIONS THE MOST.
CAN YOU DO THAT IN SUCH A WAY THAT MAYBE THE DEBT SERVICE IS ALREADY COVERED WITH THE MONEY WE'RE ALREADY SPENDING ON IT? I THINK THAT'S A REALLY, REALLY BIG ASK. I DON'T KNOW IF WE CAN GET THERE. AND THEN IF YOU THROW IN TMRS, HOW DOES IT ALL CHANGE? THE ONLY WAY TO ANSWER THE QUESTIONS IS TO DO THIS ACTUARIAL STUDY.
>> SO CORRECT MY UNDERSTANDING IF I'M WRONG, BUT WE HAVE TWO ISSUES.
WE HAVE THE UNFUNDED LIABILITY PORTION OF THE RETIREMENT PLAN, PLUS HOW DO WE KEEP UP WITH CONTRIBUTIONS EVERY YEAR, SO WE DON'T GET BACK INTO THIS PROBLEM, IS THAT RIGHT?
>> THAT IS CORRECT. THAT'S WHY THE ACTUARIAL WORK WILL HELP PROVIDE BOTH OF THOSE ANSWERS TO THOSE TWO PROBLEMS.
>> IF WE HAVE TO GO -- IF WE GO, THE -- I WANT TO MAKE SURE I UNDERSTAND WHAT YOU'RE SAYING.
IF WE GO THE TMRS ROUTE FOR FIREMEN IN THE FUTURE, WHAT YOU'RE SAYING IS IS MAYBE IN THE SHORT- TERM, A RETIREE, THE TMRS ISN'T AS GOOD AS THE FIREFIGHTER IN THE SHORT- TERM, BUT THE LONGER AN EMPLOYEE IS WITH THE CITY, THEY SAY GO FOR 30 YEARS, THEN THE TMRS IS BETTER, EQUAL,
OR -- >> DEPENDS WHAT TIER YOU'RE INTO. IF YOU'RE IN THE SECOND TIER, IT IS PRETTY ON PAR. IF YOU'RE IN THE FIRST TIER, TAKES ANOTHER FIVE YEARS OF TMRS TO HAVE A COMPARABLE LEVEL BENEFIT.
IT IS ALSO TIED TO HOW -- WHAT YOU'RE MAKING, RIGHT? AS OUR FIREFIGHTERS ARE MAKING MORE OVER TIME, THAT MAY GET DIMINISHED TOO WITH THE CAP IN PLACE. YOU REMOVE THE CAP, IT IS A FLUID SYSTEM. SO IT IS --
[01:20:01]
>> YOU'RE PAYING IN TMRS, YOUR CONTRIBUTIONS ARE LOWER.
>> SO YOU'RE GETTING MORE MONTHLY.
>> EVEN THOUGH IT TAKES YOU A LITTLE LONGER TO HIT THAT EXTRA RETIREMENT
PART. >> YES, WITH ALL THINGS, IT IS -- IT IS A LOT OF THINGS GOING ON.
>> I HAVE SOME QUESTIONS. BRIAN, YOU MAY HAVE SOME KNOWLEDGE ON THIS. I APPRECIATE YOU, SIR.
>> SO, ON THE 45. 3 FUNDED LIABILITY, AND YOU KIND OF MENTIONED EARLY ON THAT WHENEVER YOU FIRST GOT HERE, THAT WAS ONE OF THE QUESTIONS YOU HAD, SO, WE'RE AT 45. 3 FUNDED LIABILITY.
>> LET ME CLARIFY THAT. THAT 45. 3 IS FROM OCTOBER OF 2023, THE ACTUARIAL STUDY, THAT IS THE PERCENTAGE OF ASSETS ON HAND OF THE PROJECTED FUTURE VALUE OF THE UNFUNDED LIABILITY THAT WE HAVE. SO, THE UNFUNDED IS THE PART WE DON'T HAVE. WE HAVE ASSETS THAT EQUAL 45% OF THE TOTAL LIABILITY FOR NOW UNTIL÷÷ THE LAST SPOUSE OF THE LAST 20-YEAR- OLD FIREFIGHTER PASSES AWAY, IF WE WERE SUNSETTING.
THAT'S 80 YEARS FROM NOW. THIS DOESN'T ELIMINATE THIS PLAN. THIS PLAN IS STILL GOING TO HAVE A BOARD, GOING TO BE MANAGED AND STILL GOING TO BE CONTRIBUTIONS AS LONG AS THERE IS A LIVING RECIPIENT OF THE PENSION.
SO, 45% FUNDED RATIO IS A MEASURE OF THE HEALTH OF THE SYSTEM, IN A PRIVATE SECTOR PENSION PLAN.
THE REQUIREMENTS ARE MUCH HIGHER BECAUSE THERE IS ALWAYS THE THE BUSINESS FOLDS AND YOU HAVE TO PAY THE LIABILITY IMMEDIATELY AS A CURRENT LIABILITY. THAT IS NOT REALLY THE CASE FOR US BECAUSE WE'RE NOT GOING TO GET RID OF OUR FIRE DEPARTMENT. WE NEED THEM.
WE WANT THEM. WE WANT THEM TO BE HAPPY.
SO THAT IS NOT A REALISTIC ASSUMPTION.
BUT IT IS THE SAME TYPE OF MEASURE THAT WE'RE USING TO SEE HOW HEALTHY THE PLAN IS. 80% IS GENERALLY ACCEPTED AS A HEALTHY PLAN, YOU'RE GOING TO BE ABLE TO MEET YOUR OBLIGATIONS AND WEATHER ANY SHOCKS, ECONOMIC DOWNTURNS, THAT KIND OF THING.
90% IS GREAT. AT 100%, YOU NEED TO START TRYING TO DECIDE WHAT DO YOU DO WITH THE MONEY. DO YOU REDUCE CONTRIBUTIONS? DO YOU INCREASE BENEFITS? DO YOU OFFER COST OF LIVING ADJUSTMENTS TO PREVIOUS RETIREES.
IT IS A GOOD PROBLEM TO HAVE. WE'RE NOWHERE NEAR HAVING THAT.
AND DEPENDING ON THE NUMBERS, IF YOU EVER GOT TO 100%, YOU KNOW, I'M NOT SURE THAT THAT'S NECESSARILY THE LEVEL TO GO TO. I THINK IT IS WORTH LOOKING AT.
I'M SORRY FOR INTERRUPTING, BUT I WANT TO MAKE SURE THE 45% RATIO WAS CLEAR.
>> YEAH. WELL, THIS IS A COMPLICATED MATTER. I KNOW FOR MOST PEOPLE THIS NEVER CROSSES THEIR RADAR. SO THIS IS MAYBE THE MOST INFORMATION THAT WE'LL HAVE.
SO, THE 45. 3 FUNDED LIABILITY AS YOU MENTIONED IT WAS ON YOUR RADAR WHEN YOU FIRST GOT HERE, OVER THE LAST FIVE YEARS, 45. 3 WAS FROM OCTOBER, OVER THE LAST FIVE YEARS PRIOR TO THAT, HAS THAT 45. 3 INCREASED, DECREASED, STAYED THE SAME, WHAT DIRECTION ARE WE TRENDING?
>> IT HAS GONE UP AND DOWN, BUT IT IS ESSENTIALLY FLAT IN MY OPINION.
>> THERE HASN'T BEEN ANY IMPROVEMENT THAT MAKES ME
AND THAT'S -- AND NOW EXTENDING THAT BACK OVER TEN YEARS, THAT SAME TREND IS -- WE JUST KIND OF FLATLINED, NOT GOING UP OR DOWN? OKAY.
THAT GIVES A SENSE OF WHAT DIRECTION IT IS TRENDING.
SO, IF WE -- IF WE FULLY FUND IT, I THINK LYNN TOUCHED ON THIS A LITTLE BIT, BUT IF WE FULLY FUND IT AND WHATEVER ROUTE WE GO, 50, 60, 70 MILLION, IF THAT'S THE ROUTE WE GO AND FULLY FUND IT, OR WE FUND IT BACK UP, ARE THE CONCERNS THAT, WELL, WE GOT HERE, SOMEHOW, RIGHT, OVER 40 YEARS, WE FULLY FUND IT, WE BRING IT BACK UP, BUT THE SAME INHERENT STRUCTURAL ISSUES ARE THERE THAT 30 YEARS FROM WHEN WE FULLY FUND IT THIS YEAR, WE'RE GOING TO BE BACK IN THE SAME POSITION SAYING WHERE DID WE GO WRONG? WHAT IS THE CONCERN THERE?
>> THERE IS A CONCERN THERE BECAUSE THE CITY OF ABILENE, THE COUNCIL DOES NOT HAVE THE ABILITY TO MANDATE, APPROVE, DENY, WHATEVER.
THERE IS NO -- OTHER THAN THE COUNCIL MEMBER REPRESENTATIVE, THE BOARD IS CONTROLLED ESSENTIALLY BY FIREFIGHTERS, RIGHT? SO, NOW, THEY'RE RESPONSIBLE INDIVIDUALS. I'M GOING TO PAINT A PICTURE THAT LIKELY WOULD NOT HAPPEN.
BUT LET'S SAY THAT WE FIX THIS, WE GO THROUGH THE PAIN TO GET THIS DONE, AND FIVE YEARS, YOU GET A ROGUE BOARD, TEN YEARS, A ROGUE BOARD, AND LET'S VOTE ON SOME GREAT BENEFITS FOR US AND THEN THE TORPEDOS.
[01:25:04]
ONE THING I TALKED TO AT THE PENSION BOARD IS, LOOK, IF YOU'RE GOING TO INCREASE PENSION LIABILITY, RIGHT, THAT SHOULD BE APPROVED BY THE COUNCIL.IF THE CITIZENS OF ABILENE ARE GOING TO WRITE A CHECK TO GUARANTEE THIS THING, THERE NEEDS TO BE A SAFETY MECHANISM SO THE COUNCIL'S REASONABLY CERTAIN WE DON'T GET BACK IN THIS POSITION THROUGH A ROGUE BOARD, RIGHT? BECAUSE THERE ARE SOME CITIES THAT WANT TO REMOVE THIS BOARD AND MAKE IT A CITY THING AND THE COUNCIL CONTROLS EVERYTHING. I DON'T THINK WE NEED TO GO THERE, PERSONALLY. I THINK IT IS COUNTERPRODUCTIVE.
I THINK THE FIREFIGHTERS ARE INTERESTED IN MAKING SURE THEIR PENSION IS GOOD. THEY HAVE BEEN DOING THINGS TO CORRECT THIS. WE'RE JUST IN A BIG OLD HOLE.
SO WE IMMEDIATE TO NEED TO STOP DIGGING AND THE ONLY WAY TO STOP DIGGING IS TO ADD MORE DIRT IN THE HOLE AND GET OUT OF THE HOLE.
SO, THAT MECHANISM OF CREATING SOME LEVEL OF COUNCIL AUTHORITY OVER THE DECISIONS OF THE BOARD WHEN THEY INCREASE PENSION LIABILITY, OR INCREASE BENEFITS OR SOMETHING ALONG THOSE LINES, I THINK THAT'S A GOOD COMPROMISE.
OTHER CITIES ARE LOOKING AT THAT. AND IF I REMEMBER THE CONVERSATIONS I HAD WITH MR. BAKER RECENTLY, EVEN THE PENSION REVIEW BOARD TALKED ABOUT THE ABILITY OR ADDING SOMETHING.
>> IS THAT SOMETHING WE HAVE THE AUTHORITY TO DO OR SOMETHING THE STATE HAS TO GIVE US THE AUTHORITY TO DO?
>> I THINK WE CAN NEGOTIATE THAT WITH THIS CONCEPT OF WE'RE GOING TO GO AHEAD AND FUND YOUR PENSION LIABILITY. THIS WOULD BE PART OF THE DEAL IN THAT PROCESS.
>> THE BOARD WOULD HAVE TO RECOMMEND THAT TO THE FIREFIGHTERS AND THE FIREFIGHTERS AS A GROUP HAVE TO VOTE TO AGREE TO S.E.E.D. CEDING SOME OF THAT CONTROL.
WE'RE DANGLING MONEY IN FRONT OF THEM.
>> IS THAT AN INDEPENENT CONTRACT, THAT'S NOT STATUTORY
THERE IS DISCUSSION ON WHETHER THIS IS EVEN A MEET AND CONFER ISSUE.
I THINK IT CAN BE MADE ONE IF ALL PARTIES AGREE TO TALK ABOUT IT.
BUT WE HAVE NEVER HISTORICALLY PUT THE PENSION SYSTEM IN MEET AND CONFER.
I DON'T THINK WE NEED TO. I THINK THAT THIS CAN BE DONE, WE HAVE ALL LIVING PARTIES.
CONTRACT. >> INDEPENDENT ARRANGEMENT, AND THERE WOULD BE LANGUAGE, IF THEY'RE GOING TO APPROVE THIS, YOU WANT TO MAKE LANGUAGE THAT ANY CHANGE TO THAT PROVISION WOULD HAVE TO BE APPROVED BY COUNCIL TOO. THEY COULDN'T GO THEN AND THEN UNDO IT, RIGHT? SO, BUT THE REALITY OF IT IS IF WE HAVE TO USE -- IF THE COUNCIL HAS TO USE MEET AND DEFER FOR THE TOOL, IT IS AVAILABLE TO YOU, RIGHT? I STILL THINK WE HAVE TO DO IT.
>> I HAVE MORE QUESTIONS. YOU GO
AHEAD. >> ARE THERE REAL OBVIOUS BENEFITS OR NEGATIVES RELATED TO THE TRANSITION OF TMRS FOR NEW FIREFIGHTERS?
>> YES, THE CHALLENGE WITH THIS, THIS IS WHY -- THE NUMBERS NEED TO DRIVE THE POLICYMAKING. IRVING HAS DONE THIS VERY THING AND IT IS ACTUALLY NOT WORKING WITH THE TMRS CONCEPT.
IT IS CREATING A -- IT IS ERODING THEIR FUNDED LIABILITY AGAIN, THEIR FUNDED NATURE OF THEIR PLAN BECAUSE THEY'RE NOT MAKING ADDITIONAL CONTRIBUTIONS. SO, WHAT I DON'T KNOW IS EXACTLY HOW IRVING IRVING FUNDED THIS.
HE'S TALKING TO THE ASSOCIATION PRESIDENT, I'M NOT TALKING TO THE CITY MANAGER TO GET BOTH SIDES OF THE STORY AS WELL. BUT THE BOTTOM LINE IS, AS I SAID BEFORE, THE NUMBERS, THE SCIENCE NEEDS TO DRIVE THAT. THE ACTUARIAL DATA AND RESULTS NEEDS TO DRIVE THAT.
AND WE HAVE GOT TO ASK THE QUESTION TO KNOW THE ANSWER.
IT MAKES EVERYTHING KIND OF IN A NEAT BOW FROM THE POLICYMAKERS, WE SOLVED THIS PROBLEM GOING FORWARD, WE CAN'T EVER GO BACK AGAIN.
AND POLICYMAKING AND GOVERNMENT, THERE IS ALWAYS A FALLACY OF WE FIXED IT AND IT WILL NEVER HAPPEN AGAIN. WELL, WE'RE ALL HUMAN.
IT IS GOING TO HAPPEN AGAIN. THAT'S JUST LIFE, RIGHT? YOU DO WHAT YOU BEST CAN TO SOLVE THE PROBLEM WITH THE INFORMATION AND THE ABILITY YOU HAVE TO DO IT AND YOU TRY TO CREATE A SYSTEM THAT CONSTRAINS POLICYMAKERS IN THE FUTURE SO THEY CAN'T INTENTIONALLY MESS IT UP.
THINGS HAVE TO ADAPT TO CHANGE TOO. DOES THAT ANSWER YOUR QUESTION, SHANE?
>> THAT'S PART OF THE QUESTION FOR THE ACTUARIALS IS WHAT DO WE NEED TO DO AS FAR AS 70, 80, 90% FUNDED IF WE STAY WITH THE CURRENT SETUP VERSUS IF WE TRANSITION NEW FIREFIGHTERS INTO TMRS AND LOSING THE FUTURE CONTRIBUTIONS, SO DOES THAT IMPACT HOW MUCH WE NEED TO FUND, WHAT IS REMAINING BECAUSE THEIR CONTRIBUTIONS ARE STUCK AT HOWEVER MANY ARE ACTIVE AND DECREASING AS THEY RETIRE.
>> THAT'S EXACTLY RIGHT. AND THAT'S HOW -- IT WILL
[01:30:02]
HAPPEN. THAT'S HOW WE'RE POSING THE QUESTION IS, LOOK, LET'S FIX THE SYSTEM, WHAT DOES THAT LOOK LIKE, SO THAT'S KIND OF THE BASE LEVEL, AND THEN, ALL RIGHT, WELL, IF WE FIX THE SYSTEM AND DO THE TIER, WHAT DOES THAT LOOK LIKE? FIX THE SYSTEM, DO THE TIER, DO TMRS, WHAT DOES THAT LOOK LIKE? WHAT IF WE DO TMRS AND FIX THE SYSTEM? WE'LL HAVE A MENU OF THIS IS WHAT IT LOOKS LIKE AND WHILE WE'RE PART OF THE DISCUSSION, RIGHT, TO COUNCIL MEMBER YATES QUESTION, IT IS THE BOARD AND THE FIREFIGHTERS THAT HAVE TO SAY, OKAY, WE WANT TO DO THIS. SO, THE BOARD, I THINK, FEELS LIKE THERE IS A WAY FORWARD ON THIS. AND I THINK THAT WE SHOULD EXPLORE THAT COOPERATIVELY AND IN A SPIRIT OF RESOLUTION, AND SO FAR WE'RE ABLE TO DO THAT.SOME CITIES HAVEN'T BEEN ABLE TO DO THAT.
SOME CITIES HAVE GONE LOGGERHEADS WITH THEIR PENSION BOARD AND FIRE DEPARTMENT AND THAT HAS NOT BEEN US, EVER AND I WOULD LIKE TO AVOID THAT IF WE
>> THE GOODNESS OF THE TMRS OPTION IS SMALL PLAN VERSUS BIG MAN.
THERE IS WAY MORE STABILITY ACROSS THE STATE.
YOU GOT HUNDREDS OF THOUSANDS OF PARTICIPANTS AND CONTRIBUTING MEMBERS AND CITIES THAT ARE DOING THIS VERSUS A COUPLE HUNDRED IN ABILENE WITH THEIR OWN PLAN.
AND SO, THEIR ABILITY TO ABSORB UNEXPECTED ECONOMIC EVENTS IS FAR GREATER AND THAT HELPS THE CITY, THE BENEFIT TO THE CITY IS THIS -- DO WE END UP IN THIS SITUATION AGAIN IN 20 OR 30 YEARS.
>> BUT ALSO -- IT ALSO BENEFITS THE INDIVIDUAL FIREFIGHTERS THAT AREN'T TMRS BECAUSE THEY'RE PAYING LESS PER MONTH OUT OF THEIR PAYCHECK.
>> IT DOES. YOU GOT TO REMEMBER THAT ALL THE PEOPLE THAT ARE VOTING ON WHETHER THE FUTURE FIREFIGHTERS ARE GOING TO BE IN TMRS ARE NOT IN TMRS AND THEY'RE -- JUST MAKE THEM DO IT. THEY'RE NOT HIRED YET, SO --
>> AS FAR AS RECRUITING PERSPECTIVE AND ALSO WE ARE COMMITTED TO PROVIDING THE FUNDING TO FUND WHAT THEY'RE IN TODAY. SO IT DOESN'T HURT THEM FOR THEM TO CONSIDER THE TMRS OPTION IF IT IS SOMETHING THE ACTUARIALS COME BACK AND SAY --
TO LOOK ÷÷AT. >> ASSUMING WE CAN MAKE UP THE GAP. I WOULD BE CURIOUS TO KNOW WHAT THAT NUMBER IS.
>> AND THAT'S -- THAT'S WHY IT IS NOT -- THIS IS NOT JUST A SIMPLE, HEAD COUNT, THEY GOT TO RUN NUMBERS AND IT IS GOING TO TAKE TIME TO DO THAT. THEY'RE COMMITTED -- THEY'RE COMMITTED TO DOING THIS. THE BOARD ALREADY MOVED FORWARD WITH GETTING THIS PREPARED, THEY HAVE RUN A NEW ACTUARIAL STUDY TO SET A BASELINE SO WE CAN THEN MONKEY WITH THE MODEL. SO WHEN I SAY THEY'RE INTERESTED IN DOING THIS, THEY ACTUALLY -- THEY'RE INTERESTED ENOUGH THAT THEY ALREADY PULLED THE TRIGGER SO WE CAN HAVE THIS DISCUSSION AT A REFINED LEVEL IN A COUPLE OF MONTHS.
>> SO, THE QUESTION BEFORE US, OR THE DISCUSSION HERE IS NOT WHAT DO WE DO OR WHAT DO WE PICK OR WHAT CHOICES DO WE MAKE, IT IS ARE WE -- DO WE WANT TO HAVE THIS DISCUSSION?
>> AND I THINK WE ABSOLUTELY DO. WE HAVE WAITED ABOUT AS LONG AS WE CAN WAIT WITHOUT MAKING A BIG
DECISIVE MOVE ON THIS. >> INDEED.
I WON'T GO INTO THE DETAILS, BUT A VERY STRATEGIC ASKING REPRESENTATIVE LAMBERT TO REQUEST A REVIEW BY THE PENSION REVIEW BOARD OF THE ABILENE FIREFIGHTER PENSION FUND.
WE WERE THE FIRST PENSION FUND IN THE STATE OF TEXAS TO REQUEST ONE OF THESE THINGS. AND IT WASN'T NECESSARILY MET WITH JOY. BUT THE PROCESS THAT GOT US THERE HAS DIRECTLY LED TO THESE DISCUSSIONS OF HOW DO WE ACTUALLY FIX THIS PROBLEM. BECAUSE WHAT A LOT OF US SAW WAS THAT WE'RE RUNNING, RUNNING, REALLY, REALLY FAST AND REALLY, REALLY HARD, WE'RE NOT GETTING ANYWHERE.
AND THAT'S NOT A RECIPE FOR SUCCESS.
>> IF THE 70 MILLION AND THERE IS 50, 60, $70 MILLION OPTIONS, IF $70 MILLION IS APPROVED, WHERE DOES THAT TAKE US PERCENTAGE- WISE TO FUNDING?
>> I DON'T KNOW THAT ANSWER JUST YET. THEORETICALLY, LOOKING AT THAT, IT TAKES US TO 100%.
THAT'S WHY WE DID THE 50, 60, 70.
THE ACTUARIALS WILL HELP US DETERMINE THAT EXACT NUMBER.
>> SO ROUGHLY, IF WE GO THE OTHER END AT 50, THAT TAKES US TO MAYBE 70%? 80%?
>> OKAY. IS THIS SOMETHING -- IS THIS BEING CONSIDERED AS A BOND TO THE PEOPLE THEY WOULD VOTE ON IN MAY OR NOVEMBER?
>> NO. SO HOW -- COUNCIL CAN DO WHAT THEY WANT TO DO. BUT THIS IS A RESTRUCTURING OF A CURRENT AND -- A CURRENT OBLIGATION AND SO COUNCIL CAN DO THIS WITHOUT VOTER APPROVAL. YOU CAN ALSO SEND IT TO
[01:35:04]
THE VOTERS IF YOU WANTED TO. IT BECOMES A QUESTION OF WHAT IT IS YOU WANTED TO DO. OTHER COMMUNITIES HAVE NOT.THEY HAVE JUST DONE IT. AGAIN, WE OWE THIS AND THIS IS A VERY COMPLICATED THING. AND THOSE -- THE COUNCILS IN THOSE COMMUNITIES DECIDED WE'RE GOING TO GO AHEAD AND DO THIS.
>> WE SEND IT TO THE VOTERS, THEY SAID WE DON'T WANT TO DO IT, WE HAVE TO DO IT ANYWAY BY LAW. THAT'S WHY I ASKED THAT QUESTION, TO SAY, OKAY, IF FOR WHATEVER THE COUNCIL SAYS NO OR IT GOES TO THE PUBLIC AND THE PUBLIC SAYS NO, WE'RE TALKING ABOUT, ALL RIGHT, 50, $60 MILLION, IF FOR WHATEVER REASON THAT IS NOT THE COURSE WE TAKE, WHAT IS -- WHAT IS THE RECOURSE? OKAY, WELL, IS IT THE STATE TAKES IT OVER OR IS THERE A MIDDLE GROUND SOMEWHERE ELSE THAT WE DON'T WANT TO CONSIDER THAT OPTION AT THIS TIME?
>> THE RECOURSE IS NOT TO PAINT DOOM AND GLOOM, BUT I'M TELLING YOU THIS IS WHAT THE RECOURSE IS, STATE WILL FORCE YOU TO FIX THE PROBLEM, YOU WILL NOT HAVE THE -- YOU WON'T HAVE THE SAY ON HOW TO FIX THAT, AND YOU'RE GOING TO END UP CUTTING SERVICES AND PRODUCTS ACROSS THE BOARD TO BE ABLE TO FUND THE PENSION LIABILITY BECAUSE YOU CAN'T RAISE TAXES.
THE STATE, FOR BETTER OR WORSE, HAS SEVERELY RESTRICTED OUR ABILITY TO RAISE REVENUE. THEY GET TO DO THAT AND WE GOT TO LIVE WITH IT. THAT'S HOW THE SYSTEM WORKS.
BY DOING SO, THEY REMOVED THREE- QUARTERS OF THE TOOLS IN OUR TOOLBOX AND YOU CAN'T -- WE CAN'T RAISE THE REVENUE TO SOLVE THIS PROBLEM.
WE ALSO CAN'T CHANGE THE BENEFITS ENOUGH TO CHANGE -- TO SOLVE THIS PROBLEM. WE HAVE GOT TO THE EDGE -- WE'RE HEADING 90 MILES PER HOUR TOWARD THE EDGE OF THE GRAND CANYON AND WE NEED TO STOP, WE'RE GOING TO DO A THELMA AND LOUISE.
WE DON'T WANT TO DO THAT. WE GOT TO DO SOMETHING.
THE STATE DICTATES WHAT IT IS AND IT IS GOING TO BE EXPENSIVE AND PAINFUL, OR WE DO THIS, IT IS GOING TO BE EXPENSIVE AND PAINFUL.
BUT WHAT IS THE NET IMPACT TO OUR SERVICES? WE CAN STILL MOVE FORWARD WITH THE GOVERNMENT SERVICES WE'RE PROVIDING.
THE LIBRARY SERVICES, THE PARKS AND RECREATION SERVICES, THE QUALITY OF LIFE AMENITIES THAT ARE ESSENTIAL FOR GROWING AN ATTRACTIVE CITY.
>> SO IT WOULD BE FAIR TO SAY WHAT IS THE COUNCIL OF THE PUBLIC WE GO ONE OF THESE 50, 60 OR $70 MILLION OPTIONS OR REALLY THE ONLY OTHER OPTION IS STATE TELLS US, TAKES IT OVER AND TELLS US WHAT TO DO, WOULD THAT BE A FAIR --
CAN'T -- >> 50, 60, $70 MILLION.
>> THIS IS NOT ASKING WHETHER WE WANT TO ASSUME $70 MILLION OFOF DEBT. WE HAD $70 MILLION OF DEBT.
THIS IS HOW DO WE -- DO WE WANT TO PICK HOW IT GETS PAID OR DO WE WANT TO LET THE STATE DO IT.
>> IS THERE A -- I'M TRYING TO THINK THROUGH, WORST CASE SCENARIO, IF ALL OF THOSE THINGS PLAY INTO A PART, WOULD SELLS SALES TAX BE IMPLEMENTED INTO THAT?
>> RAISING SALES TAX TO COVER IT? NO. BUT WHAT WILL HAPPEN, YOU CAN RAISE REVENUES TO FUND THIS, SO YOU MAY NOT HAVE A CORPORATION ANYMORE. YOU MAY BE REPLACING THAT WITH SOME OTHER AVAILABLE LOCAL OPTION TAX. WHAT DOES THAT DO? THERE IS A WHOLE CASCADING EFFECT. YOU WANT TO BE IN THE DRIVER'S SEAT.
>> I WAS GOING TO SAY, I DON'T PUT YOU ON THE SPOT OR BRIAN, BUT IS THERE A SENSE OF WHERE, YOU KNOW, WE'RE OBVIOUSLY FROM THE CITY SIDE, IS THERE A SENSE THAT YOU'VE GOTTEN FROM THE FIREFIGHTERS THEMSELVES, YEAH, THEY'RE SUPPORTIVE OF THIS OPTION? WHETHER IT IS THE 50, 70, SOME OTHER OPTION? IS THERE A SENSE OF THAT?
>> THE CONVERSATION THAT BRENT AND I HAD YESTERDAY WAS WE ARE BOTH AND I THINK THE BOARD MAY BE THERE TOO, INTERESTED IN EXPLORING THIS, WE ARE BOTH UNDERSTANDING THAT THE ACTUARY NEEDS TO HELP DETERMINE THE OUTCOME OF THIS AND WE'RE ALL WILLING TO GO THROUGH THAT PROCESS.
>> YEAH. NOBODY -- WE DON'T -- NOBODY HAS ENOUGH INFORMATION TO ADVOCATE FOR ONE OF THESE SOLUTIONS. THESE ARE ILLUSTRATIVE ONLY.
TO PROVIDE A POINT. THE NUMBERS FROM US SPOTTING TIME LAST OCTOBER, 24, THOSE DON'T APPLY ANYMORE.
THESE ARE NOT A PROPOSAL TO ACCEPT.
IT IS JUST -- THIS IS KIND OF WHAT SOMETHING LIKE THIS WOULD LOOK LIKE. THE BOARD UNDERSTANDS THE GRAVITY OF THIS SITUATION. THEY ARE MAKING GOOD AND RESPONSIBLE DECISIONS. BUT WE'RE SO FAR DOWN THIS ROAD THAT THEIR ABILITY TO INTERNALLY MAKE CHOICES AND ASSUMPTIONS THAT THEY'RE OUT OF -- AND THE THING THAT CHANGED IS WHEN THE PRB ANNOUNCED THAT THEY WERE GOING TO CHANGE THE CRITERIA FOR REVIEW.
[01:40:02]
IT USED TO BE 30- YEAR AMORTIZATION FOR TWO CONSECUTIVE YEARS WOULD TRIGGER IT, THAT'S COMING DOWN. THE FUNDING RATIO IS COMING DOWN AND THE TIME PERIOD YOU HAVE TO BE IN THOSE SITUATIONS.SO NOW IF YOU DO THAT ONE YEAR, BAM, YOU'RE IN, THEY CAN'T FIX IT THAT FAST. THE FLIGHT PATH IS NOT -- IT HAS LEVELED OFF. TO YOUR POINT IF YOU GO BACK TEN YEARS, IT HAS BEEN DECLINING.
THE FUNDED RATIO. AND PROBABLY IN THE LAST FIVE IT HAS LEVELED OFF BECAUSE PEOPLE HAVE STARTED TO REALIZE, HEY, WE'RE ABOUT TO CRASH. THIS IS A DISASTER ABOUT TO HAPPEN. AND NOW IT IS STARTED THIS PAST YEAR, THE 24, I DON'T KNOW WHAT THE NUMBERS LOOK LIKE, WE HAVEN'T SEEN THE REPORT FROM THE FISCAL YEAR '24, BUT IT APPEARS THAT THE INVESTMENT RETURNS FROM THE STOCK MARKET, WHICH AFFECT THE HEALTH OF THE FUND WERE POSITIVE. AND SO IT IS A LITTLE BETTER, AND THE UNFUNDED LIABILITY IS A LITTLE LESS. BUT NOT TO THE POINT THAT WE'RE GOING TO AVOID A PRB REVIEW, PROBABLY WITHIN TWO YEARS.
>> TO BE CLEAR, WE CAN'T INVEST OURSELVES OUT OF THIS.
IT IS TOO FAR BEHIND THE EIGHT BALL.
>> WHAT IS THE TIMELINE IS MY FINAL QUESTION? WHAT IS THE TIMELINE ON, OKAY, YOU GUYS HAVE TALKED, YOU MET WITH ALL THE PARTIES AND, GO, OKAY, HERE IS THE RECOMMENDATION, WHETHER IT IS THE 50, 60, 70, AND HERE'S THE PROPOSED, YOU KNOW, CHANGE TO GOVERNANCE OR WHATEVER IS NEEDED, ARE WE LOOKING AT NEXT MONTH, SIX MONTHS? WHAT IS THE TIMELINE HERE?
>> I THINK ONCE WE GET THE DATA TOGETHER, YOU COULD DO SOMETHING IN SIX TO NINE MONTHS. YOU COULD HAVE A DECISION AND THEN GO THROUGH THE DEBT ISSUANCE PROCESS.
>> THIS WOULD BE TOWARD THE END OF THIS YEAR THAT WE WOULD AS A COUNCIL POSSIBLY BE MAKING
>> JUST FOR EVERYONE'S BENEFIT, I DON'T WANT TO BELABOR THIS TOO LONG, BUT CAN YOU BRIEFLY SUMMARIZE HOW WE ENDED UP HERE?
>> AND HOW LONG HAS THIS BEEN DEVELOPING?
>> DECADES AGO, SOMEONE TOOK THEIR EYE OFF THE BALL.
AND FROM THIS SIDE OF -- THIS SIDE OF THE TABLE, CITY MANAGEMENT SIDE OF THE TABLE, AND PROBABLY HAD CONVERSATIONS AMONGST YOURSELVES AND WE PROBABLY SHOWED UP TO MEETINGS AND SAID, HEY, WE NEED TO DO A BETTER JOB HERE, BUT DIDN'T FORCE THE ISSUE.
I DON'T KNOW IF THAT GOES ALL THE WAY BACK TO WARNER MCDANIEL OR LARRY GILLY.
BUT AS THE CITY MANAGER, THE BUCK STOPS AND YOU HAVE TO PUT YOURSELF IN HARM'S WAY AND SAY WE NEED TO DO A BETTER JOB NEAR. EVEN THOUGH THE CITY MANAGER HAS NO CONTROL OVER THIS, OTHER THAN WHAT THE CITY IS INVESTING AND THEY HAVE TO COME BACK AND ASK THE COUNCIL FOR ADDITIONAL PENSION CONTRIBUTIONS AND WE HAVE DONE THAT, RIGHT? I'VE DONE THAT.
>> YES. AND WHERE IS THE REGULATION THAT DICTATES HOW WE HAVE -- WHAT WE HAVE TO CONTRIBUTE? IT IS NOT US.
>> NO, NO. WE COME TO AN AGREEMENT ON IT WITH THE PENSION BOARD.
>> I DON'T MEAN NOT COUNCIL, BUT I'M TALKING ABOUT IT IS NOT WE PASS AN ORDINANCE, THIS IS HOW WE CONTRIBUTE, THIS IS A WHOLE THING THAT IS THIS WEIRD QUAGMIRE OF INDEPENDENT BOARDS DICTATING SOME OF THIS KIND OF STUFF, AND IT DEVELOPS OVER A LONG PERIOD OF
AND THEN YOU HAVE THE FIRE PENSION BOARD WHO WAS GETTING ADVICE FROM THIRD PARTY PROFESSIONALS THAT THEY TRUST, AND THAT THIRD PARTY PROFESSIONAL, RATHER THAN SAYING YOU CAN'T HAVE AN 8% INVESTMENT RETURN AND BE -- AND ASSUME THAT'S GOING TO HAPPEN YEAR OVER YEAR OVER YEAR.
YOU CAN'T ASSUME SOME OF THE THINGS YOU'RE ASSUMING IN YOUR -- YOU CAN, BUT IT IS DISNEY LAND.
LIABILITY. >> IT CREATES HUGE ED LIABILITY BECAUSE THERE IS NO INVESTMENT IN THE WORLD THAT GETS AN 8% YEAR OVER YEAR WITH THE OTHER INVESTMENT TERMS THAT -- IT JUST DOESN'T HAPPEN, RIGHT? THERE IS GOOD YEARS, THERE IS BAD YEARS.
ALL THE MONEY THAT THE PENSION FUND JUST MADE IN THEIR INVESTMENTS SINCE LAST YEAR COULD DISAPPEAR TOMORROW WITH ONE MARKET CORRECTION. YOU CAN'T MANAGE YOUR WAY OUT OF THIS THROUGH INVESTMENTS. YOU HAVE TO HAVE SOLID INVESTMENT PRINCIPLES. IT HELPS YOU ALONG THE WAY, BUT THE SYSTEM HAS TO BE FUNDAMENTALLY SOUND.
INVESTMENT ISN'T THE ANSWER, RIGHT? IT MITIGATES RISKS. IT SPREADS THINGS OUT.
GIVES YOU A LITTLE EXTRA MONEY.
>> PROVIDES RESILIENCY, BUT IT IS NOT THE SOLUTION.
SO HISTORICALLY -- WHAT HAS BEEN CREATED IS RATHER THAN TRYING TO ADDRESS THIS THING, THE THINGS THAT ARE ACTUALLY GOING TO BUILD A SYSTEM THAT IS EFFECTIVE, TOP TO BOTTOM, THE PENSION BOARD, CITY OF ABILENE, AND MY
[01:45:01]
PROFESSIONAL OPINION WE HAVE NOT ENGAGED ONE ANOTHER IN THE YEARS WHEN THIS WOULD HAVE BEEN EFFECTIVE AND I DON'T KNOW WHO IS TO BLAME AT THAT, BECAUSE WE'RE TALKING -- WE'RE TALKING 20 YEARS AGO, RIGHT? I KNOW THE TIME I'VE BEEN HERE, IT IS SOMETHING WE HAVE TALKED ABOUT AND WE PULLED LEVERS TO TRY TO MAKE IT WORK.IT IS JUST NOT WORKING. AND WE CAN CONTINUE TO TRY TO INVEST OUR WAY OUT OF IT, CONTINUE TO THROW MONEY AT THE CONTRIBUTION RATES, BUT THE HOLE IS TOO BIG, WE NEED TO SOLVE THE HOLE. IN A NUT SHELL, THAT'S HOW WE GOT HERE. IT WAS EASIER NOT TO SOLVE A PROBLEM THAN IT WAS TO SAY, OKAY, THIS IS A 40- YEAR PROBLEM. THIS IS A 50- YEAR PROBLEM.
WE'LL FIX IT LATER. IT IS THE SAME CONVERSATION WE'RE HAVING WITH SOCIAL SECURITY AS A COUNTRY RIGHT NOW. WE'RE NOT GOING TO FIX IT, YEAH, WE KNOW BENEFITS MAY GET REDUCED, WE WON'T FIX IT BECAUSE IT IS TEN YEARS AWAY, FIVE YEARS AWAY, THAT GETS CLOSER AND CLOSE ERYN NOW R AND NOW IT SAYS DO YOU WANT TO COUNT ON SOCIAL SECURITY, AND IT SAYS YES OR NO, RIGHT? WE CAN'T LET THIS GET THERE. WE HAVE AN OBLIGATION TO STOP THIS SORT OF CRAZINESS THAT HAS BEEN TAKING PLACE.
WE CAN'T FIX SOCIAL SECURITY. BUT WE CAN FIX THE FIRE PENSION.
>> SO WITH REGARDS TO THE RESTRUCTURING OF DEBT OR ISSUANCE OF NEW DEBT, I'M NOT ASKING FOR AN ANSWER RIGHT NOW, I KNOW THIS WILL BE PART OF THE PLAN, BUT WHAT I WOULD LIKE TO SEE IS WE CREATE A PLAN IS, ONE, WHAT CAN WE RESTRUCTURE, HOW MUCH CAN WE GENERATE THAT WE CAN CONTRIBUTE BASED ON THAT VERSUS ISSUANCE OF NEW DEBT AND GENERAL FUND DOLLARS BUT WE HAVE TO PUT EQUAL WEIGHT BEHIND HOW ARE WE GOING TO GET CONTRIBUTIONS TO THE PLATE, WHETHER IT IS TMRS OR THE PENSION FUND.
WHAT ARE WE GOING TO DO TO KEEP THIS FROM HAPPENING AGAIN? WHAT IS THE STRATEGY GOING TO BE?
>> MY ONLY RESERVATION WITH THE TMRS SYSTEM IS THAT IT MAY NOT BE PART OF THE STRATEGY TO MAKE SURE THIS DOESN'T HAPPEN
>> BECAUSE WE REDUCED CONTRIBUTIONS.
WHEN ARE YOU RETIRING AGAIN? >>
>> THE ALTERNATIVE FUNDING MECHANISMS, I'M MAKING SURE I UNDERSTAND, THEY REALLY AREN'T UP TO US?
QUESTION. >> IF WE'RE REDOING, REIMAGINING, SO WE DON'T GET IN THIS POSITION AGAIN, WHAT ARE SOME POTENTIAL ALTERNATIVE FUNDING MECHANISMS OUTSIDE OF TMRS? WE HAVE CONTROL OVER FIGURING OUT SOME OF THOSE? I'M ASSUMING NOT, BUT I'M JUST WONDERING COULD WE BE A PART OF THAT CONVERSATION OR --
>> BECAUSE WE'RE COMING TOGETHER COOPERATIVELY WITH THE BOARD TO TRY TO SOLVE THIS, I DO BELIEVE WE HAVE INFLUENCE, BUT WHATEVER IS CREATED HAS TO BE ACCESSIBLE TO THE PENSION MEMBERSHIP.
AND TMRS IS NOT NECESSARILY THE SOLUTION.
TMRS COULD COMPOUND THE PROBLEM. AND SO WE NEED TO GO THROUGH THIS ACTUARIAL WORK TO FIGURE THAT OUT. WHEN IT COMES TO HOW DO WE SOLVE THE -- ALTERNATIVE WAYS TO SOLVE THE PROBLEM, SURE, WE COULD INCREASE CONTRIBUTIONS, YOU KNOW, MAYBE IT IS ANOTHER 5% TO 10%.
HOW DO YOU PAY FOR THAT, RIGHT, WITHOUT RAISING REVENUE? YOU HAVE TO CUT OTHER SERVICES OR REASSIGN REVENUE THAT IS WORKING OTHER PLACES. THE ONLY OTHER REVENUE WE HAVE, IT IS THE 4A TAX. THAT'S PROBABLY NOT THE WAY TO DO THAT. SO, WE HAVE GOT TO GO THROUGH THE EXERCISS IN PARTNERSHIP WITH THE PENSION BOARD, AND THOSE CONVERSATIONS THAT WE HAVE BEEN VERY CORDIAL AND THEY HAVE BEEN VERY COOPERATIVE BECAUSE EVERYBODY UNDERSTANDS THIS IS A REAL DEAL. WE NEED TO SOLVE THIS PROBLEM.
SO DO WE HAVE INFLUENCE ON WHAT THIS THING LOOKS LIKE AT THE END, 100% WE DO, THIS IS NOT SOMETHING THAT COUNCIL CAN JUST DICTATE.
>> WE'RE NEGOTIATING. BUT THE GOOD NEWS IS THAT WE'RE NOT ADVERSARIAL, RIGHT? WE'RE TRYING TO MAKE THE SYSTEM WORK AND EVERYBODY HAS THE VESTED INTEREST OF MAKING IT WORK. DOES THAT ANSWER YOUR --
>> IT DOES. I'M JUST TRYING TO MAKE SURE THAT I'M NOT SAYING IT IS A SHORT CUT, BUT JUST THE WAY THAT WE'RE RETHINKING OR REIMAGINING WHATEVER INFLUENCE THAT WE HAVE, DOES IT MAKE THE TRIP THIS TIME AROUND TWICE AS LONG THE NEXT TIME AROUND? BUT OBVIOUSLY THERE IS LIMITED INFLUENCE THAT WE HAVE IN THAT. SO, BUT THANK YOU.
>> DO YOU KNOW WHEN THE FIREFIGHTER PENSION SEPARATED FROM THE REST OF THE CITY OR HAS IT ALWAYS BEEN LIKE THAT?
>> I IMAGINE IT PROBABLY HAS ALWAYS BEEN THAT WAY.
MINDY, DO YOU HAVE THE HISTORY ON THAT? IT ALWAYS HAS BEEN THAT WAY. THIS GOES WAY, WAY, WAY BACK.
[01:50:05]
>> OBVIOUSLY WITH BRIAN BEING ON THE BOARD, IN THE PAST WE ALWAYS HAD AT LEAST ONE COUNCIL MEMBER REPRESENTATIVE, I DON'T KNOW IF THAT'S A HELPFUL QUESTION, I'M JUST CURIOUS, BASED ON --
>> CONGRATULATIONS, SECOND. >> CONGRATULATIONS.
>> LET ME STEP IN, BECAUSE I WAS IN THE POSITION
PRIOR. >> I WAS CURIOUS, LIKE --
>> ROBERT SAID THIS 45% NUMBER HAS BEEN FLAT FOR SEVERAL YEARS. AND THE ONLY ANSWER THAT WE EVER HAD WAS INCREASING CONTRIBUTIONS.
OKAY. CITY AND EMPLOYEES, BUT THAT'S JUST BEEN THE ANSWER. AND THE SEVEN YEARS I'VE BEEN INVOLVED IN THIS, WE'RE STILL FLAT AND NOT GETTING ANYWHERE.
THE CONSIDERABLE AMOUNT OF INCREASED CONTRIBUTIONS.
>> PEOPLE DIDN'T WANT TO ADDRESS IT SO WE HAVE TO ADDRESS IT. IT IS A CRISIS. AND IT'S UP TO US TO FIX THIS.
>> WHAT I'M HEARING FROM COUNCIL IS THERE IS INTERESTING IN EXPLORING THIS CONCEPT FURTHER. AND, I SHOULD BE ABLE TO GO BACK TO THE PENSION BOARD. TO HAVE COOPERATIVE DISCUSSIONS WITH OUR OFFICIALS AND RECOMMEND SOME SOLUTIONS TO SOLVING THIS PROBLEM. WHAT WOULD THE PLAN LOOK LIKE. WHAT ARE THE SAFEGUARDS. SO WE DO EVERYTHING WE CAN TO AVOID THIS FROM
HAPPENING AGAIN. >> YOU KNOW WHEN WE CAN EXPECT
THE UPDATE ON THE NUMBERS? >> THEY WILL HAVE THE NEW STUDY ALL OF THIS WILL BE BASED OFF OF. AND IT COULD BE ANOTHER MONTH MAYBE. MONTH OR TWO BEFORE WE SEE.
>> IT IS NOT THE SAME ACTUARY? >> NO. THEY HAVE HIRED A NEW ACTUARY DOING A VERY GOOD JOB AND AN INVESTMENT COMPANY.
>> THAT'S GOOD DATA. >> IT'S GOOD DATA. I WANT TO BE CLEAR, I'M NOT BLAMING THE BOARD FOR THIS. WE ARE IN THIS TOGETHER. IT IS BROKEN TOGETHER. WE GOT TO SOLVE IT TOGETHER.
>> GREAT. OKAY. >> THANK Y'ALL VERY MUCH.
>> THANK YOU. >> STREET MAINTENANCE IS NEXT.
WE CAN TAKE A BREAK. >> WE HAVE A WHOLE LOT OF AGENDA
LEFT. >> OKAY. LET'S DO STREET MAINTENANCE. AND WE HAVE A GUEST. I DON'T KNOW IF HE HAS ARRIVED YET OR NOT. HE SHOULD BE HERE AROUND 11:00. THEN I WANT TO JUMP DOWN TO CONVENTION CENTER WHILE THE PERSON THAT HELPED PUT THIS CONCEPT TOGETHER WILL BE HERE. SO MAX, DO YOU WANT TO COME UP AND GIVE YOUR PRESENTATION? THANK YOU SIR.
>> GOOD MORNING MAYOR HURT. THANK YOU COUNCILMEMBER BEARD FOR THE SEGWAY. THIS IS WHAT STAFF CALLS THE WRANGLE MAP. IT IS AN ONGOING MAP AND A LIVING DOCUMENT THAT WE ARE TRYING TO PUT AS MUCH COLOR AS WE CAN INTO THIS MAP INTO THE FUTURE. SO, IT STARTED IN 2017. WHEN WE STARTED TO MAKE IMPROVEMENT TO THE RECORD CONSTRUCTION PROJECT, ET CETERA. WE HAVE IMPROVED 29% OF THE ROADS SINCE 2016. WHEN WE REALLY STARTED LOOKING AND FOCUSING ON STREET MAINTENANCE AND REPAIRS. AT THE PRESENT TIME, WE HAVE INVESTED 140 MILLION BROKEN DOWN INTO BOND FUNDS. STREET MAINTENANCE FUNDS. ET ET IS A. THAT'S THE OVERALL AMOUNT. 50MILLION FROM THE STREET MAINTENANCE FUND. WE HAVE A CURRENT BALANCE OF 5 MILLION TO 6 MILLION. WE HAVE INVESTED ABOUT 15 MILLION SINCE 2018 INTO THE STREETS. FOR THE 2025 PROGRAM, THESE ARE THE PROJECTS THAT HAVE GONE THROUGH THE STREET MAINTENANCE BOARD. THESE ARE WHAT WE ARE LOOKING FOR.
[01:55:02]
THEY ARE IN THE 30 TO 40% DESIGNED PHASE AT THIS POINT.AND WILL BE STARTED BEFORE THE END OF THE YEAR. REBECCA LANE, THAT IS ONE THAT WE ARE DESIGNING BUT HOLDING OFF UNTIL TEX DOT GETS DONE WITH BUFFALO GAP. THAT WAS ONE THAT HAS BEEN COMMENTED ON SEVERAL TIMES THAT PORTION OF THE ROAD NEEDS DONE.
BUT WE DON'T WANT TO CONFLICT TEX DOT'S CONSTRUCTION WITH OUR CONSTRUCTION AND CREATE MORE CHAOS IN THAT AREA. SOUTH 14TH STREET IS ANOTHER ONE. WE HAVE A PART OF NORTH 18TH THAT IS ONGOING NOW. AND THEN THE NEIGHBORHOODS FOR THIS YEAR'S PROGRAM, THE PARK AREA, PHASE TWO, WE DID S10A. JUST FINISHED IT THIS MONTH. THIS IS THE S10B PORTION OF THAT. THAT'S GOING RIGHT ALONG. SO, CHUGGING RIGHT ALONG WITH THESE PROJECTS. THIS IS THE LIST THAT WE KIND OF MAINTAINED AND KEEP. IT IS A LIVING DOCUMENT FROM STAFF DRIVING AROUND TOWN AND LOOKING AT ROADS. AND ALSO, FROM OUR ORIGINAL REPORT THAT WE RECEIVED IN THE 2021 TIME FRAME. ALL THOSE FACTORS GO IN. THIS IS THE LIST. YOU'LL SEE THE FULL DEPTH RECLAMATION. THOSE ARE THE ROADS THAT NEED TO HAVE A FULL REPAIR DONE. MORE EXPENSIVE IN THAT CATEGORY. THE PARTIAL DEPTH ARE THE ONES IN THE MID RANGE GETTING CLOSER TO THE FULL DEPTH RECLAMATION. WE ADDED ANOTHER ONE FOR THE PREVENTIVE MAINTENANCE. THIS IS A WAY THAT WE WILL EXTEND THE LIFE OF OUR ROADS. AND WHAT WE HAVEN'T DONE IN THE PAST, WE HAVEN'T FOCUSED ON THE PREVENTATIVE MAINTENANCE.
THAT'S WHAT'S LED US TO SOME OF THE CONDITIONS OF THE STREETS TODAY. TEND LIST YOU SEE UP THERE, WE HAVE NEIGHBORHOODS AND WE HAVE THE LINEAR STREETS. ALL EXPENSIVE. SO WE CAN DO PORTIONS OF THE STREETS UNDER THE BUDGETS THAT WE HAVE. AND WITH THAT, ARE THERE ANY QUESTIONS I CAN ANSWER?
>> WHAT'S BEEN THE MOST EFFECTIVE WAY THAT YOU GUYS HAVE GOTTEN IMPUT FROM THE RESIDENTS OF WHICH STREET TO TACKLE TIME
LINE WISE? >> REALLY IT IS THROUGH FIX OR MANY OF THE BOARD MEMBERS RECEIVE COMMENTS FROM THE CITIZENS. THE STREET MAINTENANCE BOARD MEETS TWICE A YEAR. THAT IS ANOTHER AVENUE CITIZENS HAVE. WE HAD REPRESENTATIVES FROM A NEIGHBORHOOD THAT CAME. AND, PRESENTED THEIR CASE. AND THE BOARD TOOK IT INTO CONSIDERATION.
>> THE RESIDENTS OUT THERE SAYING MY STREET IS HORRIBLE AND IT IS NEVER GETTING FIXED AND I'M COMPLAINING, COMPLAINING.
WHAT WOULD YOU SAY TO THEM AS FAR AS WELL WE'LL COME TO A BOARD MEETING OR EMAIL THE BOARD?
>> ABSOLUTELY SIR. >> AND CONTINUE TO DO C CLICK
>> QUESTIONS. >> THANK YOU GENTLEMEN.
>> NORTHWEST AND SOUTHEAST BOAT RAMPS. LESLIE IS GOING TO PRESENT THIS. WE TALK ABOUT CAPITAL PROJECTS. DURING THE DISCUSSION ON THE CONCEPT PLAN, THE MASTER PLAN I PUT TOGETHER.
ONE OF THE DISCUSSION POINTS THEY PLANNED ON THEY WANTED TO SEE THE BOAT RAMPS IMPROVED. THIS IS YOUR OPPORTUNITY TO DO THAT FOR FY26. WE START HEADING IN THAT DIRECTION. LESLIE, DID
YOU WANT TO PRESENT THIS? >> THANK YOU. LESLIE ANDREWS, DIRECTOR OF PARKS AND RECREATION. PART OF THE FORT PHANTOM MASTER PLAN APPROVED BY THE PARKS BOARD AND CITY COUNCIL A COUPLE OF MONTHS AGO DID TALK ABOUT IMPROVEMENTS NEEDED AT THE BOAT RAMPS. AT THAT TIME, CITY COUNCIL ASKED STAFF TO LOOK AT THE BOAT RAMPS. WE TOOK THE OPPORTUNITY TO EVALUATE THE LAKE. AND SELECTED THESE TWO RAMPS TO FOCUS ON THE TOP FLAG
[02:00:01]
WHICH IS WHAT WE ARE CALLING THE NORTHWEST BOAT RAMP. IS WHAT PEOPLE NORMALLY USE AT FORT PHANTOM LAKE. THE SOUTHEAST BOAT RAMP IS WHAT A LOT OF PEOPLE REFER TO IS WHERE THEY PUT BOATS IN AND OUT OF THE LAKE. HAVE QUITE A FEW PICTURES OF THE NORTHWEST BOAT RAMP. THIS IS A WIDE BOAT RAMP. IF THEY ARE STRAIGHT, YOU COULD EASILY HAVE EIGHT BOATS ENTERING THE WATER AT THE SAME TIME. IT IS A LARGE BOAT RAMP. AND VERY WELL USED.BUT, AS YOU CAN SEE, OVER TIME, IT HAS STARTED DETERIORATING THE CONCRETE IS FAILING SOME OF THE ASPHALT IS FAILING. THESE ARE LARGER VEHICLES PULLING BOATS AND TRAILERS. IT HAS DONE SOME DAMAGE. SO WE WORKED WITH JACOB AND MARTIN TO COME UP WITH OPINION OF PROBABLE COST OF WHAT IT WOULD TAKE TO FIX THE NORTHWEST BOAT RAMP. AS YOU CAN SEE, IT IS A COMPLETE REHABILITATION OF THE FULL RAMP. WHAT WE DID IS WE WENT BACK IN TIME TO LOOK TO SEE WHEN SOME OF THE LOWEST LEVELS OF THE LAKE WERE. AND THEN, PLANNED FOR THAT. SO YOU WILL SEE THE EXTENSION OF HALF OF THE RAMP. GOING MUCH DEEPER INTO THE WATER. THAT WOULD GIVE THE ABILITY FOR BOATS TO ENTER THE WATER AT THE LEVEL WE WERE AT IN 2014. IF YOU REMEMBER THE DROUGHT BACK THEN AND HOW LOW FORT PHANTOM GOT, THIS PLAN WOULD GIVE US THE ABILITY FOR BOATS TO STILL BE ABLE TO ENTER FORT PHANTOM AT THE LEVELS WE WERE AT IN 2014. WE WOULD ONLY BE ABLE TO DO HALF THE WIDTH OF THE RAMP BECAUSE OF WHERE THE RAMP IS LOCATED. WE WOULD GET TOO SHALLOW TOO SOON ON THE OTHER HALF OF THE RAMP. THIS IS FULL REPAIR OF THE PARKING LOT AS WELL AS A LITTLE BIT OF EXPANSION. BECAUSE AGAIN, THESE ARE LARGER VEHICLES PULLING TRAILERS THAT NEED A LOT OF ROOM. THIS IS ADDING AND IMPROVING THE LIGHTING AND ELECTRICAL. ADDING A BATHROOM. THERE IS CURRENTLY NOT A BATHROOM IN THAT COLLATION. UTILITY, SEPTIC, THERE WILL NEED TO BE SOME MORE INVESTIGATION TO WHAT WE CAN DO WITH THE SEPTIC SYSTEM. BUT WE DO HAVE A NUMBER PLUGGED IN FOR THAT. EARTH WORKS, TO BE ABLE TO MAKE THESE IMPROVEMENTS, WE WILL HAVE TO SET UP THE DAM WHICH BLOCKS THE WATER FOR IT TO DRY UP TO BE ABLE TO DO THIS WORK. SO THAT IS GOING TO REQUIRE SOME PERMITTING AND THINGS. THE PRODUCTIVE COST TO START PRODUCTION IN JANUARY OF 2026 IS $2.275 MILLION. THE SOUTHEAST BOAT RAMP, IT IS A CONCRETE BOAT RAMP. IT IS STARTING TO FAIL. IT IS FAIRLY STEEP. THE PARKING LOT AGAIN IS STARTING TO FAIL. SO AGAIN, THE OPINION OF PROBABLE COST. IT IS THE BOAT RAMP, THE ASPHALT, LIGHTING. ADDING A BATHROOM. SITE WORK. WE ARE RECOMMENDING A FORCE LIT BOAT DOCK AT THIS LOCATION. WE ALREADY HAVE ONE AT THE FORT PHANTOM LOCATION. WE ARE RECOMMENDING THIS ONE HERE AS WELL. IF APPROVED, THE JANUARY, 2026 NUMBERS IS $1.871 MILLION. WE DID DO A LITTLE BIT OF INVESTIGATION AND CONVERSATION WITH TEXAS PARKS AND WILDLIFE. THERE IS A BOAT ACCESS GRANT THAT IS A REIMBURSABLE 75, 25 MATCH. I WILL SAY THOSE ARE FEDERAL DOLLARS THAT FLOW THROUGH THE STATE. IN THE WORLD WE ARE LIVING IN NOW, THIS GRANT OPPORTUNITY IS AVAILABLE FOR US TO APPLY FOR THROUGH APRIL.
THERE IS A $1 MILLION CAP FOR CONSTRUCTION AND A $250,000 CAP FOR FEES AND PERMITTING. SO, WE WOULD EASILY MEET THE 75, 25 MATCH IF THIS WAS APPROVED. IT WAS RECOMMENDED THAT WE APPLY FOR EACH BOAT RAMP SEPARATELY. SO POTENTIALLY, WE COULD GET UP TO $1.2 MILLION FOR EACH RAMP IF APPROVED SEPARATELY. THESE WE ARE UP AGAINST APPLYING FOR THESE FUNDS. THERE IS ALSO ANOTHER GRANT CALMED THE HABITAT AND ANGLER ACCESS PROGRAM. IT IS A REIMBURSABLE GRANT THAT IS 100% FUNDED. IT DOESN'T REQUIRE ANY CITY DOLLARS. IT DOES LOOK GOOD IF THERE IS A MATCH. THAT GRANT WOULD ONLY HELP WITH THE FORCED SLIP DOCK AND THE SIDEWALK THAT GOES TO IT. IT DOES NOT GO TO THE BOAT RAMP,
[02:05:07]
THE ASPHALT, THE LIGHTING, THE BATHROOM. WITH THAT, I'M HAPPYTO ANSWER ANY QUESTIONS. >> DO WE HAVE ON SITE SEWER AND
WATER? >> WE DO NOT HAVE A UTILITY AND LOCATIONS WHICH IS WHY WE ARE LOOKING AT SEPTIC SYSTEMS. THE CHALLENGE IS IF WE CAN'T GET A SEPTIC PERMIT ISSUE NEXT TO THE LAKE, WE LOOK AT A COMPOSTING TOILET. IF YOU DON'T HAVE SOMETHING, PEOPLE WILL STILL GO. SO WE NEED TO HAVE A SPOT.
>> I DON'T KNOW WHAT YOU ARE REFERRING TO, SIR. I MEAN. THE FIRST THING THAT JUMPS OUT AT ME HERE, AND WHOEVER KNOWS CAN ANSWER. HOW CAN A PREFAB BATHROOM COST $300,000?
>> I WILL SAY PREFAB BATHROOMS ARE EXPENSIVE. THIS PREFAB BATHROOM THAT WE PUT IN THERE IS A NEW ONE THAT WE HAVE NOT HAD IN ABILENE. IT IS A SELF-CLEANING RESTROOM. SO AFTER
SO MANY USES. >> DON'T TELL MY WIFE THAT.
>> IT ACTUALLY SELF-CLEANS. IT DOES COST A LITTLE MORE THAN THE NORMAL PREFAB BATHROOMS WE HAVE USED. BECAUSE OF THE ISOLATION OUT HERE AND ALL THE VARIOUS PEOPLE, THE CAMPING AN THINGS.
THIS IS A RECOMMENDATION. IT DOESN'T MEAN WE HAVE TO GO WITH
THAT. >> DOES THAT INCLUDE THE SEPTIC?
>> OKAY? >> IF WE CAN'T GET THE SEPTIC, WE WOULD DO A COMPOSTING WHICH WOULD NOT BE SELF-CLEANING.
>> IT WOULD NOT BE NEAR AS EXPENSIVE BUT IT WOULD NOT BE
SELF-CLEANING. >> VERY AFFORDABLE. YOU SEE THEM
IN THE STATE PARKS. >> THAT SAVES US ON WHAT I
>> NOT HAVING TO SEND SOMEONE OUT THE TO CLEAN THEM. THEY LAST
TEN YEARS? 20 YEARS? >> THERE IS A TEN YEAR WARRANTY.
BUT THEY COULD EASILY LAST 10, 20, 25 YEARS.
>> DOES THE PRELIMINARY, I AM STRUGGLING TODAY. KYLE, I WOULD NOT GET YOUR HELP IN ANY CLASS SETTING AT ALL. IF YOU LOOK AT THE RENOVATION DRAWINGS AND RENDERINGS, ARE THEY PRETTY MUCH IN ALIGNMENT WITH THE GRANTS YOU ARE POTENTIALLY GOING TO APPLY FOR? IS THERE A CRITERIA THAT NEEDS TO BE MET?
>> WE ACTUALLY HAD A MEETING WITH PARKS AND WILDLIFE TO MAKE SURE WHAT WE WERE PROPOSING AND WHAT WE WELCOME LOOKING AND DOING WAS WITHIN THE PARAMETERS OF THE GRANT. THERE ARE OTHER THINGS THESE GRANTS REQUIRE. IN THE PERMITTING PROCESS. LOOKING AT HISTORICAL DATA. THERE WILL BE SOME REQUIREMENTS RATHER THAN IF WE WENT OUT AND BUILT THIS ON OUR OWN. BUT WHAT WE ARE PROPOSING WITH INFRASTRUCTURE IS VERY MUCH WITHIN THE PARAMETERS
OF THE GRANT. >> GO FORTH AND APPLY. DOING BOTH THIS YEAR OR STAGGERING THEM? WHAT'S THE THINKING
THERE? >> BECAUSE THESE ARE TEXAS GRANTS, IT WOULD BE BETTER IF WE APPLIED TO BOTH THIS YEAR. WE WOULD HAVE TO WAIT TWO YEARS. THERE IS A TWO YEAR CAP. WE WOULD HAVE TO DO IT WITHIN A TIME YEAR PERIOD. IF WE DID ONE AT A TIME, WE WOULD HAVE TO WAIT UNTIL THE NEXT LEGISLATURE AND NOT BE GUARANTEED THE FUNDS WOULD BE AVAILABLE THEN.
>> HOW DOES THIS FIT IN WITH THE MASTER PLAN?
>> THESE WERE PROPOSED ALREADY NOT QUITE TO THE LEVEL THE MASTER PLAN WAS. BUT FIXING THE BOAT RAMPS, FIXING THE LIGHTING, ADDING BOAT SLIPS, RESTROOMS, THAT WAS ALL WITHIN THE MASTER
PLAN. >> AND I THINK PUBLIC INPUT THIS
WAS NUMBER ONE. >> I HAVE BEEN TO SEVERAL OF THE LAKE ASSOCIATION MEETINGS. I KNOW THEY ARE ENCOURAGED BY
THIS. >> ONE OF THE CONVERSATIONS I HAVE HAD WITH MULTIPLE DIFFERENT BOARD MEMBERS OUT THERE OVER THE YEARS, THIS CONCEPT IS SOME SORT OF WAVE BREAK. IS THAT ENGINEERED IN OR WOULD IT BE ADDITIONAL?
>> THAT WOULD BE IN ADDITION. THAT IS NOT SOMETHING WE
ENGINEERED IN THIS. >> OKAY. I DON'T THINK THE
PICTURE IS. >> THAT IS THAT STRAIGHT LINE
OUT THERE. >> SOMETHING FOR COUNCIL TO
[02:10:01]
CONSIDER. THAT IS REQUESTED FOR OBVIOUS REASONS.>> IN TOTAL FOR BOTH RAMPS YOU ARE LOOKING AT FOUR. AND THE FUNDING IF ALL THE GRANTS WERE FOR BOTH. TEXAS PARKS AND WILDLIFE. IF ALL THOSE CAME IN, CITY WOULD BE ON THE HOOK FOR ABOUT 20% TOTAL AND THEY WOULD BE AROUND 80%? IS THAT FAIR?
>> NO, SIR. I WOULD SAY BOTH TOGETHER I WOULD FOR ROUNDED FIGURES FOUR-AND-A-HALF MILLION. THEY WOULD PROVIDE TWO-AND-A-HALF MILLION IF THEY WERE ABLE TO BE CONSIDERED TWO SEPARATE PROJECTS. IF THE STATE MERGED THEM INTO ONE, IT WOULD STILL BE A FOUR-AND-A-HALF MILLION DOLLAR PROJECT AND WE
WOULD GET 1.25. >> IN ADDITION TO I THINK MAYBE ANOTHER AGENCY HAD A GRANT OR A PROGRAM?
>> THAT OTHER ONE, THAT WOULD JUST BE FOR THE 60, $65,000 SLIP. THE REST OF IT WOULD BE ON THE CITY.
>> I KNOW THIS HAS BEEN ASKED FOR MANY, MANY YEARS SO I'M GLAD WE ARE MOVING FORWARD ON THIS. I'M ENCOURAGED.
>> OKAY. >> THE NEXT ITEM BEFORE YOU IS THE IMPROVEMENT CONCEPT. THE TERMINAL EXPANSION. I WANT TO ADDRESS. AND DOM WILL DO A BETTER JOB THAN I WOULD. THIS IS NOT A FOREGONE CONCLUSION. WE ARE TALKING TO COUNCIL ABOUT THIS IS A PLAN THAT HAS BEEN WORKED ON. THE AIRPORT BOARD IS INTERESTED IN IMPROVING THE TERMINAL. IF ARE A FREQUENT FLIER, YOU WILL RECOGNIZE THERE IS A SPACE PROBLEM IN THE TERMINAL BUILDING. WE NEED MORE STAYS. THE ONLY WAY TO SOLVE THEM IS TO DO SOMETHING. DON WILL WALK YOU THROUGH THIS. AND MAYBE SOME OF THE MISCONCEPTIONS.
>> DON GREEN, DIRECTOR OF TRANSPORTATION SERVICES. WE HAVE BEEN WORKING ON THE TERMINAL CONCEPT HERE FOR VARIOUS IMPROVEMENTS AND AN EXPANSION FOR THE LAST TWO YEARS WITH PARK HILL AS OUR ARCHITECT ON RECORD. IT HAS INVOLVED CITY OF FOLKS, ABILENE STAFF OUTSIDE OF THE AIRPORT THAT I HAVE RELIED ON THEIR EXPERTISE AND GOOD TASTE. WHAT WE HAVE IS A SHOT OF THE TERMINAL FROM THE LOWER LEVEL AND WHAT THE FLOOR PLAN CURRENTLY LOOKS LIKE. YOU CAN SEE ON THE BOTTOM, THE HOLD ROOM. THEN YOU HAVE A VERY TIGHT SPACE. THAT GOES INTO THE MAIN TERMINAL AREA. THAT MAIN TERMINAL AREA IS WHAT WAS BUILT IN 1968. WE HAVE DONE VARIOUS PROJECTS THROUGHOUT THAT TIME.
TO MAKE THAT MORE USABLE. THE AIRPORT ADMINISTRATION OFFICE IS NOW ON THE LOWER LEFT CORNER. BUT THAT IS, AND THAT IS FOR PERSPECTIVE, THAT IS THE SOUTHWEST CORNER OF THAT MAIN TERMINAL BUILDING. YOU HAVE THE AIRLINE TICKET COUNTERS ON THE RIGHT HAND SIDE. AND THE EAST SIDE LEVEL. THIS IS A LOWER
LEVEL. >> THIS IS THE LOWER LEVEL AND THE LOWER LEVEL IN THE MAIN TERMINAL BUILDING IS BAGGAGE CLAIM AND WE HAVE RESTROOMS TO THE LEFT AND THE CONFERENCE ROOM AND THEN A MECHANICAL ROOM THERE ON THE LEFT. CAR RENTAL COMPANIES ARE AS YOU ENTER THE BUILDING, FROM THE NORTH, AND, THERE ARE ACTUALLY THREE CAR RENTAL COUNTERS NOW. AND ALL THREE OF THOSE ARE FULL NOW. UNDERNEATH THE BOARDING AREA AT THE BOTTOM OF THE SCREEN AND THIS FLOOR PLAN, IT IS ALL
[02:15:03]
STORAGE. THERE IS ALSO OFFICE AREA THAT WAS BUILT IN 2005 FOR TSA'S USE AS AN OFFICE AND A BREAK AREA. SO WE HAVE DONE THINGS THAT WE CAN DO. AND INCORPORATING. WE ARE PRETTY MUCH WE BELIEVE AT THE END OF HOW WE CAN MODIFY THIS. AND STILL MAKE IT USABLE FOR OUR CURRENT AND LOOKING AT THE FUTURE USE OF THE TERMINAL. SO, THE TERMINAL AGAIN WAS BUILT IN 1968. WE HAVE DONE VARIOUS THINGS TO MAKE IT USABLE, THE SCREENING CHECK POINT WAS BUILT AND THE BOARDING AREA WAS BUILT IN 2002. COMPLETED IN 2002. CONSTRUCTION WAS STARTED PRIOR TO SEPTEMBER 11TH. THERE WERE CHANGES THAT CAME AS A RESULT OF SEPTEMBER 11TH. WE HAVE ACCOMMODATED. THERE IS A NEED AND A GROWING NEED TO MAKE THAT SECURITY CHECK POINT AREA LARGER. TSS IS USING A PRECHECK LANE NOW AND THERE IS A REGULAR LANE. BOTH OF THOSE EXIST IN THE ZONE FOR ONE LANE. TSA AS THEIR EQUIPMENT CONTINUALLY EVOLVES, THEY ARE ADDING EQUIPMENT IN, AND TAKING EQUIPMENT OUT BUT THAT EQUIPMENT HAS INTRUDED MORE INTO OUR BOARDING AREA SPACE IN THESE PAST EVOLUTIONS, THE X-RAY MACHINE FOR EXAMPLE AND THE MAGNETOMETER IS STILL THERE. AND WE HAVE THE BASICALLY, THE BODY IMAGING MACHINE. THAT IS THERE.SO IT MAKES FOR A CROWDED SPACE. AT SOME POINT IN THE FUTURE, WE MIGHT NEED ANOTHER LINE. A SECOND SCREENING LINE. AND THERE IS NO SPACE FOR THAT. SO, WE WENT THROUGH, WE DID A MASTER PLAN. THAT WAS BROUGHT TO COUNCIL FOR APPROVAL IN 2021.
FOR ACCEPTANCE. IT INCLUDED A STUDY OF THE AIRPORT TERMINAL.
WHAT WE EXPECTED TO HAVE GOING FORWARD WITH MODERATE GROWTH PROJECTED THE NEXT FIVE, 10, 20 YEARS. THEN ON THE THIRD BULLET POINT, A LOT OF THE EQUIPMENT IN THE TERMINAL IS EITHER ORIGINAL TO THE 1968 BUILD OR THE 2002 BUILD. PORTIONS OF THE HVAC IS PART OF THAT. WE ARE STRUGGLING WITH CONSISTENT AIR TEMPERATURE CONTROL. AND LESLIE AND HER FOLKS DO A GREAT JOB. BUT THEY ARE HAVING TO DO TOO MUCH OF A JOB. IT IS ALMOST A DAILY BASIS WITH THEIR TECHNICIANS OR A CONTRACTOR COMING OUT AND TRYING TO WORK THE SYSTEM. TO MAKE IT COMFORTABLE. NOT ONLY FOR OUR PASSENGERS AND EMPLOYEES THERE, OUR TENANTS. THAT IS PART OF IT.
WE HAVE AN ELEVATOR IN THE MAIN TERMINAL THAT IS ORIGINAL TO THE BUILDING. THE CONTROL BOARD IS CLOSE TO FAILING. THERE ARE NO PARTS FOR THAT. WE WOULD HAVE TO SPEND TENS OF THOUSANDS OF DOLLARS TO REPLACE THAT IF IT EVER FAILS. WE HAVE PEOPLE WHO GET STUCK IN THE ELEVATOR AND WE HAVE TO GO IN AND PHYSICALLY RESET THAT ELEVATOR TO GET IT WORKING AGAIN. THE BAGGAGE CONVEYERS ARE OVER 20 YEARS OLD. WE CANNOT GET PARTS FOR THOSE ANYMORE. THE MANUFACTURER IS NO LONGER PROVIDING REPLACEMENT PARTS FOR IT. FIRE ALARM SYSTEM IS OVER 20 YEARS OLD. WE HAVE MANY FAULTS IN THAT. SO, AND AGAIN, WE CANNOT DO ANYTHING WITH THAT CURRENT SYSTEM. THE BOARD ITSELF IS BEYOND REPAIR.
IT NEEDS TO BE REPLACED. OUR ACCESS CONTROL SYSTEM, THAT'S OUR BADGING SYSTEM TO OUR DOORS AND GATES. AROUND THE AIRPORT.
THAT, AGAIN, IS OVER 20 YEARS OLD. IT IS WORKING OKAY NOW.
BUT, IT HAS BEEN RELIABLE FOR US FOR THE LAST 20 YEARS. BUT IT
[02:20:04]
ALSO NEEDS TO BE REPLACED. WE HAVE A SITUATION WHERE AGAIN, WE CANNOT GET NEW PIECES FOR THAT. NEW PARTS FOR THAT. AND WE NEED TO UPGRADE THE SECURITY OF THE SYSTEM WHERE IT CONFORMS TO MORE CURRENT DAY STANDARDS. THE GENERATOR THERE FOR THE TERMINAL DOES NOT PROVIDE EMERGENCY POWER TO THE WHOLE TERMINAL. IT ONLY PROVIDES TO SOME LIGHTING AND TO ONE OF OUR JET BRIDGES THERE, THE EAST JET BRIDGE. IT DOES NOT PROVIDE POWER TO OUR HVAC SYSTEM. SO WHEN IT KICKS ON, WE STILL DON'T HAVE ALL OF THE TERMINAL LIT. WE HAVE PORTIONS OF IT LIT. BUT WE DON'T HAVE THE HVAC SYSTEM OPERATING. SO IT EITHER GETS VERY HOT OR COLD IF THE POWER IS OUT FOR A WHILE. THESE SYSTEMS WOULD BE INCLUDED IN A PROJECT THAT WE ARE ABOUT TO DIVE INTO. AND THEY ARE JUST END OF LIFE. EVEN IF WE DID NOT DO THIS PROJECT AS PRESENTED TODAY, WE ARE GOING TO HAVE TO START PUTTING MONEY INTO REPLACING THESE SYSTEMS IN THE NEXT ONE TO TWO YEARS. THERE IS JUST NOTHING, NO WAY TO AVOID THAT. AND OUR ESCALATORS. WE HAVE DISCUSSED THEM MANY TIME. THEY ARE NOT SOMETHING WE ARE PROUD OF IN THE AIRPORT. THEY ARE VERY DIFFICULT TO MAINTAIN.VERY DIFFICULT TO MAINTAIN. AND VERY EXPENSIVE. THERE IS NO ONE LOCALLY WHO WORKS ON CALATOR IN THE CITY OF ABILENE. SO WE HAVE TO BRING COMPANIES IN FROM THE METROPLEX AND THERE IS A LARGE FEE FOR THEM TO COME IN AND LOOK AT THE PROBLEM AND COME BACK AND
SCHEDULE. >> I THINK WE JUST NEED TO GO AHEAD AND BEGIN REFERRING TO THOSE AS ESCALATOR SHAPED ART
ITEMS. >> YES. THEN MAYBE WE COULD GET.
>> YES. >> MAYBE THAT WOULD BE ANOTHER WAY TO GET SOME ARTS FUNDING FOR THE ESCALATOR.
>> THERE WE GO. GOOD THINKING. >> SO, THIS PROJECT ALSO ADDRESSES THAT. WE'LL TALK ABOUT IT A LITTLE BIT MORE DETAIL. SO, OUR BOARDING AREA, WELL OUR BOARDING AREA, THAT IS GATE AREAS WHERE THE PASSENGERS SIT PRIOR TO GETTING ON THE AIRCRAFT IS PAST THE SECURITY CHECK POINT. IT SEATS 60 PEOPLE.
THAT WAS FINE WHEN WE HAD THE 50 SEAT AIRCRAFT. THREE YEARS AGO, WE STARTED GETTING THE 76 SEAT AIRCRAFT. WE KNEW THOSE PLANES WERE COMING. THAT WAS NO SECRET TO US. WHEN THAT WAS GOING TO HAPPEN, WE DIDN'T KNOW THAT FOR SURE UNTIL AMERICAN PULLED THE TRIGGER ON THAT. BUT WE KNEW THAT WAS COMING AND WE KNEW THIS WAS GOING TO BE A PROBLEM. WE HAD TO GET THROUGH SOME OTHER PROJECTS FIRST BEFORE WE COULD ADDRESS THE EXPANSION OF THE BOARDING AREA. HOW THE PERCENTAGE OF HOW FULL THAT AIRCRAFT IS. ABOUT 56 PEOPLE ON AVERAGE FLYING THOSE FLIGHTS EACH AIRCRAFT. THE MORNING FLIGHTS ARE PRETTY MUCH FULL.
THEY EXCEED THAT 72% LOAD FACTOR CONSISTENTLY. SO IN THE MORNING THE BOARDING SPACE IS MUCH TIGHTER THAN THE 72%. WHEN WE HAVE A CHARTER AIRCRAFT IN THERE. A LARGER AIRCRAFT, WE ARE ONLY COMPOUNDING THE PROBLEM. TYPICALLY, WE CAN GET ONE OR TWO OR THREE AIRCRAFT WHO HAVE TO DEPLANE. IF THERE IS A MECHANICAL ISSUE OR WHATEVER. AND THEN USUALLY, WE HAVE OUR OWN PASSENGERS SITTING HERE AS WELL UNTIL THE WEATHER CLEARS UP AT DFW. PLUS, PEOPLE DON'T WANT TO SIT NEXT TO EACH OTHER. THERE IS A TERM IN THE INDUSTRY CALLED SEAT SPOILAGE. AND THAT IS BECAUSE PEOPLE WILL PLACE THEIR BAGS ON THE SEAT NEXT TO THEM OR DON'T WANT TO SIT NEXT TO SOMEBODY IN THE BOARDING AREA.
THOSE 60 SEATING REALLY BECOME 50 OR SO. TYPICALLY. OF PEOPLE WHO SIT DOWN. BECAUSE THEY DON'T WANT TO SIT NEXT TO EACH OTHER UNTIL THEY ACTUALLY GET ON THE PLANE AND THEN HAVE TO SIT NEXT TO EACH OTHER. THIS IS WHAT A TYPICAL PREBOARDING FOR A FLIGHT LOOKS LIKE IN THERE. AND YOU CAN SEE, THE SEATS ARE PRETTY FULL. AND THIS IS DURING THE MIDDLE OF THE DAY WHEN WE
[02:25:09]
TOOK THIS PICTURE. SO IT IS FULL. THIS IS FROM THE SAME DAY.AND THIS IS A DIVERTED FLIGHT THAT HAS DEPLANED AND WE HAD I THINK OVER 100 PEOPLE IN THE TERMINAL IN THE BOARDING AREA THAT DAY. AT THIS MOMENT. VERY CROWDED. SO, ABOUT TWO YEARS AGO, WE STARTED WORKING OUR WAY INTO REMODELING THE TERMINAL.
IMPROVING WHAT WE HAD. AND DOING IT IN A VERY FOCUSED WAY. WE CALLED THIS THE ENABLING PROJECT. WE KNEW WE DIDN'T HAVE THE FUNDS TO START THE DESIGN OF THE FULL PROJECT. WE WERE KIND OF WORKING OUR WAY TO THAT. SO WE DID PAINT THE INTERIOR OF THE TERMINAL WHITE JUST TO BRIGHTEN IT UP AND GIVE US A MORE MODERN LOOK. WE DID THE REMODEL, THE RESTROOMS DOWNSTAIRS. THOSE HAVE BEEN A BIG HIT. THOSE RESTROOMS WERE ORIGINAL TO THE TERMINAL AT THAT TIME. WE STILL HAVE SOME PLUMBING ISSUES BEHIND THE WALLS AND UNDERNEATH THAT CAUSES PROBLEMS. BUT, THE LOOK OF THOSE RESTROOMS AND REDOING THE FIXTURES IN THERE HAS BEEN VERY FUNCTIONALLY MUCH BETTER AND AESTHETICLY MUCH, MUCH BETTER.
WE WILL CARRY BOTH OF THOSE ELEMENTS INTO THIS NEW TERMINAL DESIGN. SO WE WILL NOT HAVE TO REGUT THOSE BATHROOMS. WE WILL NOT HAVE TO NECESSARILY REPAINT EVERYTHING THAT WE HAVE ALREADY PAINTED. SO WORKING WITH PARK HILL, WE STARTED OUT WITH A VERY, WITH THE PLAN THAT REALLY FOCUSED ON WHAT THE MASTER PLAN SAID TO DO. AND THROUGH CREATIVITY WITH PARK HILL AND THE MASTER PLAN DESIGN WAS VERY CONCEPTU WILL AL. WE ABLE TO LOOK AT THOSE IN A WHOLE DIFFERENT WAY WITH PARK HILL.
AND WE HAVE TRIED TO MAKE THIS A VERY MODERN LOOK. I THINK YOU WILL SEE THAT. WITH A NOD TO LOCAL AESTHETIC. WHAT ABILENE IS LIKE IN OUR VIEW. AND CREATE NEW FUNCTIONAL SPACES THAT NOT ONLY MEET OUR CURRENT NEEDS. THEY WILL EXCEED OUR CURRENT NEEDS.
WE DON'T WANT TO COME BACK AND DO THIS AGAIN IN 20 YEARS. WE THINK THIS CAN GET US ANOTHER 50 YEARS OR SO. LIKE WE HAVE GOTTEN OUT OF THE CURRENT TERMINAL. WITH SOME TWEAKS AS WELL. BUT WE DON'T THINK THAT IT WILL BE ANOTHER, THAT THERE WOULD BE ANOTHER MAJOR EXPANSION TO THE TERMINAL UNLESS SOMETHING REALLY, REALLY DRAMATIC HAPPENS IN OUR AREA. SO THE EXTERIOR WILL GET A MORE MODERN FACADE. A LOT OF GLASS TO MAXIMIZE INTERIOR LIGHT AND CREATE MORE OF AN OPEN FEELING WE HAVE IN THERE. BUT WE ALSO ARE COGNIZANT OF THE HEATING OF THE SUN DOING THAT AND YOU WILL SEE LOUVERS TO SHADE SOME OF THAT LIGHT FROM SOME OF THAT HEAT BUILDUP. THE UPPER LEVEL DRIVEWAY WILL BE DEMOLISHED. THAT WILL GO AWAY. ALL OF THE PASSENGER ENTRANCE AND EXIT OF THE TERMINAL WILL BE ON THE LOWER LEVEL. WE WILL CREATE A THIRD LANE. WE HAVE THE ROOM TO DO THAT WITHOUT TAKING UP ANY OF OUR PARKING SPACE. WE CREATED THIRD TRAFFIC LANES. WE HAVE TWO LANES DEDICATED TO VEHICLE STOPPING THERE TO PICK UP PEOPLE OR DROP OFF PEOPLE. AND A THROUGH LANE. ALL THE ESCALATORS WILL GO AWAY. WE REPLACE THOSE WITH LARGER MORE VISIBLE ELEVATORS. OUR ELEVATORS ARE IN THE SIDE WALLS OF THE TERMINAL. PEOPLE MISS THOSE VERY FREQUENTLY. SO WE SEE OUR PASSENGERS, THOUGH WE HAVE SOME SIGNAGE OUT THERE NOW. WE WILL SEE PASSENGERS GOING UP AND DOWN THE STAIRS INSIDE WITH THEIR LUGGAGE. IT IS DIFFICULT TO SEE THAT. IT IS DIFFICULT TO SIGN ENOUGH FOR THAT. THE SCREENING CHECK POINT WHICH IS, WHICH
[02:30:01]
WOULD BE RELOCATED TO WITHIN THE CURRENT FLOOR SPACE THAT WE HAVE NOW REMOVING THE TICKET COUNTER. BRINGING THOSE DOWNSTAIRS. AND THE MASTER PLAN CONCEPT, THAT WAS A BIG CHANGE BECAUSE WE WERE BUILDING THE BUILDING OUT ON THE EAST SIDE IN A VOID THAT WAS THERE NOW, WE WOULD BE FILLING THAT IN AND PARK HILL FELT THAT IT WOULD BE CHEAPER TO GO TO THE CONCEPT. ON THE EAST SIDE OF THE GROUND LEVEL LOBBY. CAR RENTAL COMPANIES WOULD MOVE TO THE NORTH FACING SIDE OF THE WEST SIDE OF THAT GROUND LEVEL. IT HAS A NICE MODERN LOOK AND IT IS VERY VISIBLE. DOWNSTAIRS AS PASSENGERS WOULD GO UPSTAIRS AFTER CHECKING IN. RETURNING THE RENTAL CAR AND GOING UPSTAIRS TO GO THROUGH THE SCREENING CHECK POINT. AIRPORT ADMINISTRATION OFFICES WOULD STAY IN THE SAME LOCATION. BUT THEY WOULD BE EXPANDED TO GIVE US MORE SPACE.WE HAVE SOME OF OUR SECURITY DUTIES. ALSO REQUIRES TO GO DOWNSTAIRS. SO THIS WOULD GET STAFF IN ONE LOCATION.
THROUGHOUT THE DAY. SO THE CONCEPT WE HAVE ALL COME UP WITH, THE LOUVERS ON THE WINDOW AND A LOT OF GLASS. AND THIS IS A HARD COVER. IT COMES OUT OVER A PORTION OF THE DRIVEWAY. TO STILL HAVE A PROTECTED AREA FROM SUN AND RAIN. TO GET PASSENGERS DROPPED OFF AND PICKED UP. THE TERMINAL HEIGHT YOU SEE THERE IS REFLECTIVE OF THAT UPPER LEVEL DRIVE. BUT, WE WOULD, THAT WOULD ALL BE ENCLOSED IN THE LAST AREA. A LITTLE BIT CLOSER VIEW.
WE WOULD HAVE TWO REVOLVING DOORS IN THE FRONT. THOSE HAVE BEEN VERY SUCCESSFUL IN MOVING PASSENGERS IN AND OUT OF THERE.
THEY ARE ALSO PRETTY ENERGY EFFICIENT IN TERMS OF NOT ALLOWING OUTSIDE AIR TO GO IN OR ÚINSIDE AIR TO GO OUT. SO THERE IS AN ENERGY EFFICIENCY WITH THAT. THEY HAVE WORKED REALLY WELL FOR US. THEN THIS IS A LOOK FROM THE RETURN LOT NOW. THIS IS NOW IT WOULD LOOK IN THE FUTURE. TO DIRECTLY FRONT OF THIS, LOOKING IN THE TERMINAL WOULD BE THE AIRLINE TICKET COUNTERS AN OFF TO THE RIGHT, PAST THE EXTENDED COVER WOULD BE THE RENTAL CAR COMPANIES. THIS IS AN INSIDE LOOK OF THE LOWER LOBBY.
STANDING IN FRONT OF THE RENTAL CAR COUNTERS. AND THIS IS LOOKING TOWARD THE AIRLINE TICKET COUNTERS. AND YOU CAN SEE THAT WE HAVE KIOSKS OUT THERE. PRETTY SURE THAT IS SOMETHING THAT THE AIRLINES ARE CONTINUING TO MOVE TO. SO THEY DON'T HAVE TO HAVE A LOT OF STAFF AT THE CHECK-IN AT THE TICKET COUNTER.
YOU CAN SEE THE STRUCTURE FOR THE GLASS ELEVATOR IN THE MIDDLE AND THE STAIRS THERE. WHERE YOU SEE THE WOMAN COMING UP THE RAMP, THAT IS THE EXISTING RAMP THAT GETS YOU DOWN FROM THE FRONT DOOR ON THE LOWER LEVEL DOWN TO THE BAGGAGE CLAIM AREA IN THE RENTAL CARS. THAT BASICALLY IS STILL THERE.
BECAUSE WE DO HAVE THE ELEVATION CHANGE. THAT IS BUILT INTO THE GROUND. WE CAN'T DO A LOT ABOUT THAT. THAT GETS US DOWN TO THE BAGGAGE CLAIM AREA. RESTROOMS BACK THAT WAY. BUT YOU CAN SEE THERE IS A LOT OF LIGHT, A LOT OF SPACE, OPEN AIR SPACE TO GET A BRIGHT, JUST OPEN FEEL. THERE IS AN OVERLOOK IN THE UPPER LEVEL LOOKING DOWN OVER THAT LOBBY. YOU CAN SEE PEOPLE AS THEY STAND UP THERE IN FURNITURE AND VISION THERE AS WELL. AND THAT WOULD BE ON BOTH SIDES OVER THE AIRLINE TICKET COUNTER AS WELL AS THE RENT A CAR COUNTERS. THE AIRPORT ADMINISTRATION OFFICE ENTRANCE, PUBLIC ENTRANCE WOULD BE ON, AT THAT UPPER LEVEL
[02:35:03]
OVERLOOK BACK JUST A LITTLE BIT. BUT IN THAT AREA. THIS IS JUST ANOTHER SHOT FROM THE EAST END OF THE BUILDING. LOOKING BACK TOWARD THE AIRLINE TICKET COUNTERS. AND THEN FURTHER TO THE RENTAL CAR COUNTERS. SO THE BOARDING AREA, WE WOULD EXPAND THAT APPROXIMATELY 5,000 SQUARE FEET. THAT GETS EXPANDED TO THE EAST AND TO THE WEST. WE DIDN'T WANT TO LOCATE EXPANDING TO THE SOUTH SIGNIFICANTLY BECAUSE THAT CUTS INTO OUR AIRCRAFT PARKING AREA AND WE USE THAT PARKING AREA ON THE SOUTH SIDE OF THE RAMP FOR THE LARGER DIVERTED AIRCRAFT OR CHARTER AIRCRAFT THAT COME IN. SO IT MAINTAINS OUR ABILITY TO HAVE LARGER AIRCRAFT ON THAT RAMP AND PARK THERE FOR I HAVE VERSIONS, WE ACCEPT THAT IS PART OF OUR ROLE BECAUSE OF THE GEOGRAPHY. WE ALSO WOULD HAVE LARGER RESTROOMS. AN ASSISTED RESTROOM.A NURSING MOTHER'S ROOM. A VENDING AREA. AND A VIP/BUSINESS SPACE. AND SEATING FOR UP TO 200 PEOPLE THAT COULD ACCOMMODATE A SCHEDULED DEPARTURE FLIGHT. WE WOULD MAINTAIN THE FUTURE ABILITY TO INSTALL A JET BRIDGE THERE IN THE CENTER OF THAT BOARDING AREA ON THE SOUTH WALL. SO THAT WE COULD CREATE ESSENTIALLY TWO AIRCRAFT PARKING AREAS THAT WOULD HAVE TO BE WHAT IS CALLED A PUSHBACK. THEY WOULD HAVE TO BE PUSHEDBACK. WHICH YOU SEE HAPPENING AT DFW. WE WOULD HAVE THAT ABILITY SO WE CAN EXPAND OUR CAPABILITY TO HANDLE MORE AIRCRAFT AT A SINGLE TIME AND DO THAT RELATIVELY CHEAPER AND NOT HAVE TO MAKE ANY STRUCTURE CHANGES OR EXPANSIONS TO THE BOARDING AREA. IN THE FUTURE IF WE HAD TO DO SOMETHING LIKE THAT. WE ALSO WANTED TO DO SOMETHING AS WELL THAT ADDS TO THE LOCAL FEEL. AND THAT IS A BALCONY OFF THE SOUTH SIDE TO GIVE PEOPLE THE OPPORTUNITY TO STEP OUTSIDE. GET FRESH AIR. STILL MAINTAIN THE SECURITY AND SAFETY OF THE AREA KEEPING THE PASSENGERS FROM MIXING WITH THE AIRCRAFT OPERATIONS. BUT IT IS SOMETHING THAT WE HAVE WANTED TO DO FOR A WHILE. AND WE ARE LOOKING FOR AN OPPORTUNITY TO DO THAT. IT IMPROVES THE PASSENGER EXPERIENCE FLYING OUT OF ABILENE. MY FRIENDS DOWN IN CORPUS CHRISTI RECENTLY DID THIS AND SO, WE KNOW THAT IT IS SOMETHING THAT IS DOABLE AND TSA IN PARTICULAR, WE CAN WORK WITH THEM TO GET THE DESIGN RIGHT THAT PASSES THEIR SCRUTINY. SO THIS IS THE BOARDING AREA. THE EXPANDED BOARDING AREA. WHEN YOU SEE THE OVERHANG ON THE ROOF, THAT IS THE NEW AREA. SO, THOSE ARE THE EXPANDED AREAS TO THE EAST AND TO THE WEST, AND THIS IS LOOKING FROM THE SOUTHEAST CORNER OF THE RAMP BACK TOWARD THE TERMINAL. YOU CAN SEE THAT BALCONY THERE IN THE CENTER. GLASS PROTECTED BUT STILL HAS VENTILATION THROUGH DIFFERENT USES OF MATERIALS. EITHER GLASS AND OR METAL PANELS SO WE CAN GIVE PEOPLE THAT OUTSIDE EXPERIENCE AS THEY ARE WAITING FOR THEIR FLIGHT. AND IN THE CENTER THERE, IF WE NEEDED TO IN THE FUTURE, WE COULD PUT THAT JET BRIDGE THERE AND STILL MAINTAIN BALCONY ON BOTH SIDES OF THAT JET BRIDGE. THIS IS JUST A CONCEPT OF WHAT THE INTERIOR COULD LOOK LIKE. WE DID WANT A SOFTER FEEL IN THERE. WE HAD SOMEBODY SAY YEARS AGO, IT WOULD BE NICE TO HAVE A FIREPLACE IN THERE. WELL, WHY NOT? WE THREW IT IN THERE AS PART OF THE CONCEPT. AND JUST TRYING TO MAKE IT THAT MUCH MORE AESTHETICLY PLEASING AND THAT MUCH MORE COMFORTABLE. AND WE ARE, YOU KNOW, AGAIN, THIS IS CONCEPT. BUT YOU DON'T SEE ALL THE FURNITURE THAT WOULD GO IN THERE. THIS IS NOT SAYING THIS
[02:40:02]
IS WHAT THE FURNITURE WOULD LOOK LIKE. BECAUSE WE ARE GOING FOR APPROXIMATELY 200 SEATS IN THERE. SO WE CAN ACCOMMODATE THE AIRCRAFT COMING IN AND THE FUTURE PASSENGERS. SO, WE HAVE THE DILEMMA OF A TERMINAL BUILT IN 1968. WE MADE A LOT OF CHANGES TO IT. WE HAVE REALLY DONE EVERYTHING THAT WE THINK WE CAN DO TO GAIN THE CAPACITY WE HAVE BUT IT WILL NOT MEET OUR CAPACITY NEEDS IN THE FUTURE. IT HAS SERVED US WELL. BUT WE BELIEVE IT IS TIME FOR THE FUNCTION, IT STILL HAS FUNCTION FOR THE FUTURE. WE CAN BUILD ON WHAT WEAVE GOT BUT WE HAVE TO MAKE SOME CHANGES TO IT. TO GET US THE NEXT 50 YEARS USING THIS BUILDING. WE DID LOOK AT WHAT IT WOULD COST TO BUILD A NEW TERMINAL TO GET THE SIZE THAT WE WANTED. WE DIDN'T WANT TO TAKE THAT FOR GRANTED. WE DID HAVE PARK HILL DO A STUDY ON THAT.AND THE COST OF THE NEW TERMINAL TAKING THIS ONE DOWN. BUILDING A NEW ONE WOULD BE ABOUT $147 MILLION IN TODAY'S DOLLARS. SO, WE CAME UP WITH, SO, THE ISSUES IN CONCEPT ARE WHAT YOU HAVE SEEN, THE VISION IS TO CREATE A NEW TERMINAL THAT WILL MAKE A DEFINITIVE AND POSITIV STATEMENT ON ABILENE'S FUTURE.
IF WE WERE TO DO EVERYTHING THAT YOU JUST SAW, WE ARE ESTIMATING THAT AT ABOUT $70 MILLION. WE DO HAVE.
>> LET ME PAUSE YOU FOR ONE SECOND. I WANT TO MAKE THE POINT. WHAT YOU SAW IN THOSE DRAWINGS WERE ASPIRATIONAL DRAWINGS. THEY WERE CONCEPTS AND IDEAS. THERE IS A TARGET RICH ENVIRONMENT FOR VALUE ENGINEERING WITH THAT DESIGN.
AND SO, IT COULD BE DONE, THIS STICKER COULD COME DOWN AND STILL HAVE A VERY FUNCTIONING FACILITY THAT MEETS THE NEEDS OF THE COMMUNITY FOR YEARS TO COME. AND I KNOW THAT THERE ARE SOME IN THE COMMUNITY LIKE, $70 MILLION IS A LOT OF MONEY. IT IS. NO JOKE ABOUT THAT. BUT WE ARE TALKING CONCEPTS AT THIS POINT IN TIME. WHEN IT CONVERTS FROM OKAY LET'S TAKE A LOOK AT THIS, THERE IS A WHOLE PROCESS THAT GOES INTO PLACE. DO WE NED TO HAVE THE GLASS ELEVATOR? ALL THOSE THINGS WILL BE GONE THROUGH. I JUST WANTED TO MAKE THAT CLEAR.
>> RIGHT, THIS IS CONCEPT. WE WANTED TO SHOW YOU. WE WANTED TO BRING YOU THE BEST OF OUR CONCEPT. THERE IS ROOM TO MAKE CHANGES IN THE FUTURE AS WE GET ENTIRE INTO A DESIGN PROCESS BASED ON YOUR INTERSECTION OF WHAT YOU WANT TO SEE. BUT WE WANTED TO BRING THE BEST. WE BELIEVED WE COULD HAVE ACCESS TO, WE HAVE TO PUT TOGETHER A FUNDING PLAN, RIGHT? SO WHAT WE HAVE WORKED WITH, THESE PROJECTS DONE ON OTHER AIRPORTS OUR SIZE, A LITTLE BIT BIGGER. THE LAST FEW YEARS SO THEY HAVE EXPERIENCE WITH THIS. WE THINK DOING THE FULL 70 MILLION THAT IT WOULD ULTIMATELY COST THE CITY ABOUT $20 MILLION TO BUILD THIS TERMINAL. AND, THAT'S STILL A LOT OF MONEY. BUT WE STILL HAVE ACCESS AND HAVE PUT TOGETHER A PLAN WE HAVE DISCUSSED WITH FAA ON GRANTS WE COULD GO AFTER THAT ARE CURRENTLY AVAILABLE AND AVAILABLE IN THE FUTURE. THAT WOULD REALISTICALLY GET US CLOSE TO THAT $50 MILLION FUNDING FROM THE GRANTS. SO THEN, THAT'S TO DO IT ALL AT ONE TIME RIGHT? SO IF WE DID IT. IF WE BROKE IT INTO PHASES WHICH IS CERTAINLY AN OPTION OUT THERE THAT WE HAVE LOOKED AT AS WELL. THE ARCHITECT
[02:45:03]
BELIEVES DEPENDING ON THE TIME LINE, IT IS RATIONAL TO THINK WE COULD ADD $11 MILLION TO THIS TOTAL COST IF WE BROKE IT UP OVER A PERIOD OF SIX, SEVEN, EIGHT YEARS. SO WHAT WOULD WE DO FIRST? WELL, THE CRITICAL NEED IS THE BOARDING AREA. WE DO NEED TO EXPAND THAT. THAT WOULD BE DONE, IF YOUR DIRECTION IS TO DO THIS IN A PHASED APPROACH, THEN THIS WOULD BE PHASE ONE. IT WOULD ALSO BE PHASE ONE IF WE DID IT AS A COMPLETE PROJECT. SO WE WOULD START WITH THAT. THAT WOULD BE OUR FIRST FOCUS. SO THAT WOULD GET US EITHER, EVEN IF THE DIRECTION IS GO WITH JUST THE BOARDING AREA, WE WOULD REPLACE THE 23-YEAR-OLD SYSTEM IN THAT PART OF THE BUILDING. WE HAVE TWO SYSTEM IS. ONE IN THE BOARDING AREA, ONE THAT SERVING THE BOARDING AREA EXCLUSIVELY AND ONE THAT SERVES THE REST OF THE TERMINAL IN THE MAIN BUILDING. SO WE WOULD REPLACE THE HVAC SYSTEM IN THE BOARDING AREA. WE WOULD REPLACE THE ACCESS CONTROL SYSTEM WE'LL HAVE TO DO THAT NO MATTER WHAT. IT TAKES CARE OF THE EXPANDED AREA AS WELL AS OUR UNIMPROVED AREA IF WE ONLY ELECT TO DO THE PHASE ONE. BUT WE NEED TO GET THAT DONE AND GET THOSE IMPROVEMENTS IN. WE WOULD WANT TO REBUILD THE INTERIOR ESCALATORS AS WE BROUGHT TO YOU BACK IN THE SUMMER. WE STILL WOULD NEED A PASSENGER CONVEYANCE, RIGHT? WE NEED A BETTER PASSENGER CONVEYANCE. SO WE WOULD RECOMMEND REBUILDING THE INTERIOR ESCALATORS TO GET THEM WORKING AGAIN AND GET A FEW MORE YEARS OF USE OUT OF THOSE UNTIL WE COULD MOVE INTO A FUTURE PHASE TO EVENTUALLY GET RID OF THOSE. THIS PROJECT WILL TRIGGER THE NEED FOR A FIRE SPRINKLER SYSTEM TO GO ALONG WITH THE ALARM. THE FIRE ALARM AND MONITORING SYSTEM IN THE WHOLE TERMINAL. WE WOULD HAVE THE DO THE ENTIRE TERMINAL. YOU CAN'T JUST SPRINKLE ONE PART OF THAT BUILDING. IT WOULD GET US THE LARGEST RESTROOMS. FOR EXAMPLE, THE MEN'S RESTROOM. WE NEED MORE UTILITIES IN THERE. WE NEED MORE FIXTURES IN THERE. IN THE WOMEN'S RESTROOM AS WELL. SO THIS WOULD GET US THE LARGER RESTROOMS. THE ESTIMATED COST FOR PHASE ONE, THE BOARDING AREA, IS ABOUT $20 MILLION. WE BELIEVE WE WOULD HAVE A SHOT AT FAA GRANTS CURRENTLY AVAILABLE. WHEN I SAY GRANTS, I TALK ABOUT WHAT IS THE CURRENT FAA AIRPORT IMPROVEMENT PROGRAM GRANTS THAT ARE CALLED ENTITLEMENT GRANTS? WE GET THOSE EVERY YEAR AT $1.1 MILLION A YEAR. BASED ON OUR PASSENGER BOARDINGS. SO WE KNOW WE HAVE ACCESS TO THAT. THAT IS CERTAIN MONEY. WE HAVE THE ABILITY TO SAY THIS IS HOW WE USE THOSE GRANTS. WE WOULD APPLY FOR DISCRETIONARY GRANTS WHICH MEANS THOSE HAVE TO COMPETE WITH OTHER PROJECTS THAT THE FAA IS CONSIDERING FROM OTHER AIRPORTS.THEN THERE IS THE AIRPORT TERMINAL PROGRAM OUT THERE.
THERE IS ONE MORE YEAR OF ELIGIBILITY WE WOULD NEED TO APPLY FOR. THIS YEAR WILL BE OUR LAST OPPORTUNITY AT THIS GRANT BECAUSE IT GOES AWAY OF THE AND WE THINK WE HAVE A SHOT BASED ON OUR CONVERSATIONS WITH FAA. AT THAT GRANT. WE ESTIMATE ABOUT $5 MILLION FROM THAT GRANT PROGRAM. WITH THE GRANTS WE THINK WE HAVE ACCESS TO, THE CITY OF THAT $20 MILLION THE CITY WOULD HAVE TO INVEST $7 MILLION. THAT COVERS GRANT MATCH. THERE ARE COSTS IN A TERMINAL THAT THE FAA GRANTS DON'T COVER. THE AIRLINE TICKET
[02:50:03]
OFFICES. THOSE GRANTS ARE NOT COVERED BY THOSE. AND THE HVAC SYSTEM. THE COST OF THAT WOULD HAVE TO BE PRO RATED BASED ON THE SQUARE FOOTAGE OF THOSE NONELIGIBLE COSTS. THOSE AREAS AS WELL. SO THEN THE NEXT TWO PHASES WHICH WOULD BE MOVING THE SECURITY CHECK POINT TO WHERE THE AIRLINE TICKETS ARE. MOVING THE AIRLINE TICKET COUNTERS DOWNSTAIRS. THAT WOULD BE PHASE TWO. AND PHASE THREE WOULD BE THE AIRPORT OFFICE EXPANSION.THOSE WOULD OCCUR IN THE FUTURE AS FUNDING IS SECURED SO WE THINK THE TIMING IS GOOD FOR THIS KIND OF PROJECT TO BE CONSIDERED WITH THE GROWTH ABILENE IS EXPERIENCING. WE ARE SEEING GROWTH. WE HAVE SEEN GROWTH THE PAST, WELL, EVER SINCE COVID. WE HAVE SURPASSED PRECOVID NUMBERS NOW. WE ENDED 2024 AT JUST OVER 99,000. AND THAT IS OUR BEST YEAR SINCE 2011 WHEN WE HAD, THAT YEAR WAS DRIVEN BY THE WILD FIRES IN OUR AREA. AND FORREST SERVICE BRINGING A LOT OF PEOPLE THROUGH. THIS HAS BEEN OUR BEST YEAR IN 10 TO 15 YEARS. SO WITH THIS, AGAIN, WE HAVE AN OPPORTUNITY FOR A GRANT THAT WE CAN APPLY FOR THIS YEAR FOR FY26 AWARD. WE ESTIMATE 5 MILLION. WE WILL HAVE FOR MORE THAN THAT. BUT WE ANTICIPATE GETTING 5 MILLION BASED ON THE HISTORY OF HOW THAT GRANT HAS BEEN DISTRIBUTED IN THE LAST FOUR YEARS OUR FY25 AND FY26 FAA GRANTS. THOSE HAVE THROUGH THE FAA REAUTHORIZATION THAT PASSED IN 2024, WE HAVE 5% MATCH NOW INSTEAD OF A 10% MATCH FOR GRANT FUNDS FOR FY25 AND 26. SO THAT SAVES US ALMOST $400,000 TOWARD THIS PROJECT. AND MATCH FUNDS. ALL OF THESE GRANTS ARE AWARDED ANNUALLY. THE DISCRETIONARY GRANTS. THOSE WOULD BE AWARDED FULLY IN ONE YEAR, THE ISSUE WITH DISCRETIONARY GRANTS IS YOU CANNOT REIMBURSE YOURSELF FOR WORK THAT IS ALREADY DONE. SO YOU HAVE TO MOVE FORWARD WITH A PROJECT FROM THAT POINT ON.
THERE ARE A LOT OF PIECES OF THIS PUZZLE THAT COME TOGETHER.
THAT BEGIN TO PUT THE PIECES TOGETHER THE NEXT FEW MONTHS AND TRYING TO GET THAT MONEY. BUT SO ESSENTIALLY, JUST TO BRING THIS TO A HEAD, WE ARE LOOKING FOR YOUR DIRECTION TO EITHER DO THIS PROJECT IN ONE PROJECT, FUND IT ALL, NOW AGAIN, THAT WOULD BE DEPENDANT ON OUR GRANT FUNDS THAT WE PUT TOGETHER. AND WE WOULD NOT EXCEED WHAT WE HAVE IN OUR GRANTS. AND THE CITY'S FUNDING THAT WOULD BE AVAILABLE TO US. WE COULD IMPLEMENT PHASE ONE. ADD $7 MILLION TO THE CITY. DESIGN PHASE ONE. THIS IS YOUR THIRD OPTION FOR CONSIDERATION. WE HAD THAT WITH PARK HILL. FROM THE FAA, FROM THE SCOPE AND FEE TO FUND THAT. SO THAT IS FUNDED.
BUT THEN, SEEK FUNDING AT A LATER TIME TO BUILD PHASE ONE.
DO WE ABANDON THE PROJECT AS CONCEIVED THAT I HAVE TALKED ABOUT THAT ARE IN NEED. OR OTHER DIRECTIONS FROM YOU GUYS AS
WELL. >> I HAVE A FEW QUESTIONS. IF YOU DID THIS ALL AS ONE PHASE, WHAT'S THE TIME LINE?
[02:55:05]
>> PROBABLY ABOUT TWO YEARS. >> THAT'S REASONABLE. DURING THAT TIME, WHAT IS YOUR PLAN FOR OPERATIONS SINCE WE ARE NOT GOING TO SHUT DOWN THE AIRPORT TWO YEARS?
>> THAT WOULD BE PART OF THE DESIGN IS PHASING IT WITHIN THAT ONE CONTRACT. TO PHASE IT ALL SO WE ALWAYS HAVE TO HAVE PASSENGERS AND EMPLOYEES OUT OF THERE.
>> IF YOU ARE WORKING ON HALF OF THE TERMINAL, ARE WE TAKING OUR SEATING CAPACITY DOWN TO 30 FOR TWO YEARS?
>> WE ARE BUILDING WINGS INTO THE BOARDING AREA. WE WOULD HAVE TO TAKE SOME OF THAT BOARDING AREA AWAY. NOT FULLY ONE SIDE.
BUT WE WOULD HAVE TO TAKE SOME OF IT AWAY. CONDENSE THE
SEATING. >> FOR MY PART, FIRST OF ALL, I THINK THIS IS RESPONSIBLE, LONG OVERDUE INFRASTRUCTURE INVESTMENT THAT WE HAVE TO DO. NOBODY LOVES THE IDEA OF SPENDING BIG BUCKS ON THIS. THIS IS ONE OF THOSE FACTORS THAT YOU JUST CAN'T LIVE WITH. YOU HAVE TO UPDATE IT EVERY 50 YEARS OR SO. THIS IS EXACTLY THE KIND OF THING WE SHOULD TAKE TO THE VOTERS AS OPPOSED TO THE COUNCIL JUST DECIDING TO DO THIS. THE OPPORTUNITY FOR VALUE ENGINEERING, SO MY PREFERENCE WOULD BE PUT THIS TOGETHER AS ONE BIG PROJECT. GET IT TIMED OUT SO WE CAN PUT IT ON A NOVEMBER BALLOT OR A MAY BALLOT AND SEEK APPROVAL FOR THAT. WITH A PLAN B FOR IF THE VOTERS DON'T APPROVE IT AND THEN WE COULD GO AFTER SOME OF THE MECHANICALS. WE WOULD BE BETTER SERVED DOING IT ALL AT ONCE RATHER THAN TRYING TO PHASE THIS AND MAKING THIS A TEN YEAR ORDEAL FOR EVERYBODY. WHICH I'M PRETTY SURE THAT'S HOW IT WOULD GO. IT IS JUST THE REALITY OF TRYING TO RUN THE AIRPORT WHILE YOU ARE PHASING NOT JUST THE CONSTRUCTION BUT THE FUNDING OF THIS. SO, I THINK YES. I WOULD LOVE TO SEE DETAILED PROPOSAL, THE CON ACCEPTABLES. I WOULD LIKE TO SEE THIS PUT FORWARD AS
A BOND INITIATIVE. >> FIRST OFF, THANKS, THIS HAS BEEN A LONG TIME COMING AND I KNOW EVERYONE WILL HOPE THAT WE KEEP THE CHICK-FIL-A THERE. I WANTED TO SEE IF YOU COULD MAYBE GET AN IDEA WITH US APPROVING OR GETTING THE AIR SUPPRESSION BASE. DOES THAT IMPACT THIS IN ANY WAY? YOU TALKED ABOUT IN 2011, OUR NUMBERS ARE WAY UP BECAUSE OF ALL THE STUFF COMING IN. WHERE WE ARE NOW WITH THE OVERCAPACITY IN THE HOLDING AREA, IS THAT GOING TO CHANGE WITH THE ADDITION OF THAT AIR SUPPRESSION BASE OR IS THAT SO TOTALLY DIFFERENT THAN WHAT THIS IS, THAT THIS IS SOMETHING WE NEED TO CONSIDER, OR DO THESE TWO ENTITIES NOT REALLY TOUCH EACH OTHER?
>> THEY ARE TWO DIFFERENT ENTITIES BUT ANY ECONOMIC ACTIVITY IN OUR AREA, YOU WOULD ASSUME INCREASES DEMAND AND AIR TRAVEL OPPORTUNITIES. YES, IT'S POSSIBLE. IT IS NOT SOMETHING THAT WE ARE COUNTING ON. IT IS NOT INCLUDED IN OUR OVERALL STRATEGY FOR THIS. IT HAS AN IMPACT. SO WOULD OTHER DEVELOPMENT AROUND THE CITY AS WELL. WE KNOW ABILENE IS GROWING AND IT IS GROWING AT A VERY GOOD PACE. THANKFULLY, IT IS RATIONAL RIGHT NOW. AND WE ARE ABLE TO CITY WIDE ACCOMMODATE OUR GROWTH. BUT THE TERMINAL IS A STRICTURE POINT FOR SOME OF THAT GROWTH THAT WILL EVENTUALLY MEAN YOU KNOW, PASSENGER GROWTH.
[03:00:02]
>> THANK YOU. >> SO I LOOKED INTO WHAT KIND OF GROWTH ARE WE PROJECTING IN THE UNIVERSITY OF HOUSTON I BELIEVE DID A STUDY ON ALL THE CITIES IN TEXAS AND THEY WERE PROJECTING.
I DON'T KNOW THE YEAR THAT CAME OUT. BUT THEY ARE REJECTING WE ARE AT 130,000 NOW. THEY ARE PROJECTING BY 2050 THAT ABILENE WOULD BE AROUND 190,000 PEOPLE. SO 25 YEARS, THIS STUDY IS PROJECTING WE WILL ADD ROUGHLY 60,000 PEOPLE. THE AIRPORT IS THE FIRST AND THE LAST PLACE THAT A LOT OF VISITORS SEE. SO I LIKE WHATEVER THE DESIGN CAME OUT, I LIKE THE CONCEPT AND I APPRECIATE YOU POINTING OUT THIS IS JUST A CONCEPT SO WE DON'T HAVE THE REPEAT OF THE PARKS, THE REC CENTER DESIGN WHERE THE VOTERS WERE GIVEN AN IMAGE AND IN THE END, IT WAS COMPLETELY DIFFERENT, BUT KIND OF PUT TO US AS WELL. TAKE IT OR LEAVE IT. IF WE DON'T VOTE NOW, IT WOULD ADD ANOTHER MILLION. SOMETHING LIKE THAT. SO I WOULD SUGGEST WITH THE AIRPORT BECAUSE THIS IS SUCH A BIG PROJECT FOR THE ENTIRE CITY THAT WE HAVE UPDATES.
WHATEVER THAT LOOKS LIKE. THREE MONTHS, SIX MONTHS, TO WHERE HEY, THE DESIGNS STARTED HERE. WE ARE NOW LOOKING AT THIS AS THE DESIGN. AND HERE ARE THE TWO OPTIONS. MAYBE THEY DON'T BE PUT TO A VOTE. BUT THE COUNCIL IS KEPT UP TO SPEED WHERE WE ARE AT A TAKE IT OR LEAVE IT SITUATION. THAT IS WHAT I WOULD SUGGEST AT THE DESIGN. AND WE CAN KEEP THE RESIDENTS INFORMED AS WELL. AT LEAST REGULAR UPDATES ON A PROJECT THIS BIG I THINK AS FAR AS THE DESIGN AND THE COST I THINK WOULD GO A LONG WAY WITH THE TRUST AND OKAY, WHAT ARE WE BUILDING. REALLY MY MAIN QUESTION HERE IS ON THE SIZE OF THE SEATING AREA. I DON'T HAVE THE SLIDE IN FRONT OF ME. BUT THE PLANE IS CARRYING WHAT, 76. AND, OUR HOPE WHETHER IT IS THIS YEAR, FIVE YEARS, TEN YEAR, THE HOPE IS WE GET A SECOND AIRLINE. IF THAT OTHER AIRLINE IS AT 76, IF THEY HAVE THE SAME FLIGHT, THAT DOESN'T FACTOR IN ANY, ALL THE PREVIOUS FLIGHT WAS DELAYED AND WE HAVE ALL THESE PEOPLE OR MAINTENANCE ISSUES. IF WE ARE SPENDING ALL OF THIS TO TAKE US TO 200,000, I'M SORRY 200 PEOPLE IN THE WAITING AREA AND I THINK YOU CALLED IT SEAT SPOILAGE. 10 TO 20%. DID I MAKE UP THAT NUMBER? THAT TAKES US TO 160 NORMAL USE.
YOU CAN CRAM PEOPLE IN, BUT YOU ARE LOOKING AT 160 USABLE SEATS.
THAT WILL COVER TWO FLIGHTS. THAT IS NO OH, WE HAVE ANOTHER FLIGHT OR ANOTHER AIRLINE OVER THE NEXT 50 OR 60 YEARS IF WE PLAN THAT FAR AHEAD. AM I INCORRECT, OR WHERE IS MY THINKING GOING ON IN THAT THIS DOESN'T QUITE SEEM LARGE ENOUGH IF WE ARE PLANNING FOR THE NEXT 30 TO 50 YEARS.
>> WE ARE TRYING TO STAY WITHIN CURRENT FAA STANDARDS FOR TERMINAL BUILDING DESIGNS. WE COULD BUILD LODGERRER BUT WHEN WE GO LARGER THAN WHAT THE FAA SAYS IS THEIR MODEL, THEN WE ARE PROBABLY GETTING INTO THE TERRITORY WHERE THEY SAY OKAY, THE CITY FUNDS THAT. BECAUSE THAT BECOMES INELIGIBLE SPACE.
>> OKAY. AND SO RIGHT NOW, OUR MAX UNDER THE CURRENT IS IF WE
WENT OVER 200, THEN. >> THAT'S WHAT WE ARE THINKING JUST BASED ON CURRENT DESIGN, TERMINAL DESIGN.
>> IF WE DO THIS AND IN TEN YEARS WE HAVE THE GROWTH, WE HAVE A THIRD AIRLINE. WE HAVE MORE FLIGHTS, WHATEVER IT IS.
HOW EASY WOULD IT BE TO ADD ON ANOTHER GATE OR EXPAND BY AN EXTRA 100 PEOPLE IN A SEATING AREA?
>> IT WOULD BE RELATIVELY THE SAME THING. IT WOULD BE GOING PROBABLY I WOULD PREFER TO DO IT TO THE WEST AND NOT TAKE UP ANY MORE OF OUR RAMP SPACE ON THE EAST SIDE. TO PROPOSE HERE.
[03:05:02]
2,000, 3,000, 4,000 SQUARE FEET. >> IS THIS TWO GATES, FOUR GATES? WHAT'S THE GATE SITUATION?
>> WHAT WE HAVE HERE IS TWO GATES, TWO JET BRIDGES AND THE ABILITY TO ADD A THIRD JET BRIDGE IN THE CENTER CALLED
SWING GATE. >> OKAY. FINALLY, WITH FUNDING.
50MILLION, 20 MILLION. FOR THE CITY. IF WE PUT THIS TO THE VOTERS. FROM A PRACTICAL STANDPOINT, WHAT WOULD THAT LOOK LIKE? WOULD IT NEED TO BE ON THE MAY ONE TO QUALIFY FOR THE GRANT THAT PHASES OUT IN AUGUST OR SEPTEMBER?
>> PART OF THE STRATEGY WITH FAA IS HAVING A COMMITMENT FROM THE CITY. IF IT IS SCHEDULED FOR NOVEMBER, WE WOULD STILL BE COMPETITIVE FOR THE DISCRETIONARY GRANTS. MAY, AND HAVING AN ACTUAL RESULT SO WE COULD WHEN WE APPLY FOR THAT ATP GRANT IN AUGUST OR SEPTEMBER. THE CITY OF ABILENE IS INVESTED IN THIS PROJECT. THE SOONER THE BETTER. BUT IF IT IS NOVEMBER, AND THERE IS TIME FOR EVERYTHING TO COME TOGETHER, THAT'S NOT
TOO MUCH OF A HINDRANCE EITHER. >> OKAY. THANK YOU.
>> IF YOU ACCEPT IF THE CITY ACCEPT IT IS GRANT POTENTIALLY, ARE THERE ANY OBLIGATIONS ON ACCEPTING THE GRANT THAT THE
CITY WOULD BE ON HOOK FOR? >> NOVEMBER IS NOT A DEAL KILLER FOR THIS AT ALL. WE WOULD HAVE THOSE DISCUSSIONS WITH FAA.
PRIOR TO THE APPLICATION FOR IT. BUT THE GRANT WOULD NOT BE AWARDED UNTIL THIS TIME NEXT YEAR, SO IF A NOVEMBER BOND ELECTION FAILED, THEN, WE WOULD JUST RESCIND OUR APPLICATION FOR
IT. >> IS THERE FLEXIBILITY ACCEPTING THIS GRANT, DOES IT LIMIT THE CITY'S FLEXIBILITY IN TERMS OF FUTURE DEVELOPMENT NEAR OR AROUND THE AIRPORT AT ALL?
>> NO, SIR, NOT AT ALL. THOSE ARE TYPICALLY, WE ARE COMMITTING OUR ENTITLEMENT FUNDS THROUGH FY29 FOR THIS. OUR 1.1 MILLION WE GET WILL GO TOWARD THE TERMINAL. IF THIS IS HOW YOU WANT US TO PROCEED. SO YEAH. THERE WOULD NOT BE ANY MORE TAXI WAY OR RUN WAY WORK. BUT WE ARE IN GOOD SHAPE OUT THERE ON THE AIRFIELD RIGHT NOW. WE HAVE DONE OUR DUE DILIGENCE. AFTER WE GET PAST THAT 29 PERIOD, OF COMMITTING OUR ENTITLEMENT GRANTS WE CAN GET BACK INTO OTHER PROJECTS. WE HAVE A RAMP ON THE NORTHWEST SIDE THAT NEEDS TO BE IMPROVED WE GET BACK OUT
OF THE AIRFIELD. >> I LIKE THE IDEA OF WHAT BRIAN SAID. THIS IS A BIG PROJECT. MY PREFAB BATHROOMS PRESENCE WOULD BE TIME LINE WISE ROUTE. IF WE DECIDE TO GO THAT ROUTE WITH THE MAY ONE. AND I AGREE, PULLING THE BAND AID OFF, GOING FULL, LET'S JUST DO IT ALL AT ONCE. THERE IS REVENUE. THERE IS NEGATIVE CONSEQUENCES TO DRAG SIX, SEVEN, EIGHT YEARS IN PHASES. AND IF IT IS VOTED DOWN, IF NEED BE, WE CAN STILL MOVE FORWARD WITH A SMALLER PHASE ONE. DOWN THE ROAD. CORRECT? VOTERS DIDN'T WANT TO SPEND 70 MILLION ON THIS PROJECT. BUT WE DO NEED TO UPGRADE THE HVAC OR THE SEATING AREA. WE ARE ABLE TO
[03:10:05]
MOVE FORWARD WITH A SMALLER FUNDING AT THAT POINT. WOULDTHAT BE CORRECT? >> AS FAR AS SYSTEMS REPLACEMENT. YES, WE COULD STILL DO THAT UNDER OUR EXISTING GRANTS. WITH THE STANDARD CITY MATCH OF 5% GOING FOR THE NEXT TWO YEARS. WE WOULD PROBABLY NOT BE ABLE TO TACKLE THE EXPANSION
PROJECT. >> IF WE WENT TO THE VOTERS AND THE VOTERS SAY NO WAY, YOU WOULD HAVE TO DRAMATICALLY CHANGE THE PROJECT TO VISIT ON THE BALLOT AGAIN.
>> ANYONE ELSE? >> I DIDN'T SEE IN THE PLANS.
THERE ARE STILL AREAS SET ASIDE FOR A RESTAURANT. THE RESTAURANTS, WE HAVE HAD SEVEN UP UNTIL NOW. TO CHICK-FIL-A.
WHERE THEY WERE FULL, THEY WERE RESTAURANTS THAT PREPARED FOOD ON SITE. NONE OF THEM HAVE HAD ENOUGH BUSINESS. THE FACT IS THEY DON'T BUY FOOD OUT THERE. WITH THE DIFFERENT RESTAURANTS WE HAD. IT IS THE COST OF MAINTAINING A KITCHEN. THE EQUIPMENT OUT THERE. MY RECOMMENDATION IS GOING TO BE, AS WE GET FURTHER INTO THE DESIGN OF THIS . WITHOUT A FULL
RESTAURANT. >> I AGREE WITH THE DIRECTION THAT SEEMS TO BE COMING. DO IT ALL TOGETHER. AND GO TO THE VOTERS. WE DON'T HAVE A GENERATOR THAT COVERS HVAC. WE PUT A GENERATOR IN SO WE HAVE HVAC WHEN WE HAVE A POWER LOSS.
>> THE GENERATOR FOR THE FULL TERMINAL, IT WILL COVER IT. IF WE CAN FIT THAT INTO, IF WE JUST DID A PHASE ONE. IF WE COULD FIT THAT INTO THE BUDGET FOR IT. YES. IT WAS ENVISIONED IN THE
FULL SCOPE. THE FULL PROJECT. >> THANK YOU.
>> PERSONALLY, I THINK WE NEED THE IMPROVEMENTS. WE DO NEED THE MORE SEATING CAPACITY. BUT I THINK SOMETIMES WE CAN DRIVE TAHOE INSTEAD OF AN ESCALADE. SO WHEN WE LOOK AT VALUE ENGINEERING, DEFINITELY WANT AN AESTHETIC, NICE TERMINAL. I DON'T KNOW THAT I'M ON BOARD WITH ALL OF THESE AESTHETIC CHANGES TO THE EXTERIOR WHEN IT COMES TO COST. BUT THAT IS JUST MY INPUT. WE NEED AN EXPANSION. WE NEED TO LOOK AT IT. WE NEED TO REALLY LOOK AT OUR VALUE ENGINEERING.
>> THAT'S RIGHT. AND THAT'S WHY WE PROPOSE THE LARGER ELEVATORS. AND YES, WE COULD HAVE AN ELEVATOR THAT IS NOT A GLASS ELEVATOR. A VERY GOOD CANDIDATE FOR CONSTRUCTION MANAGER AT RISK. WE HAVE BEEN HOLDING OFF TO WAIT FOR YOUR
GUIDANCE ON THAT. >> SO WE WILL NOT HAVE THE DONNA
ALBUS MEMORIAL ESCALATOR? >> WE WILL HAVE TO MEMORIAL DONNA ALBUS IN SOME WAY, SOMEHOW. MAYBE THAT IS JUST HER OUT THERE AS A GREETER EVERY DAY.
>> I'M SURE SHE WILL BE HERE IN FIVE MINUTES.
>> IT WILL BE A CREPE MYRTLE BED.
>> SO DO WE NEED TO BREAK? >> A COUPLE OF THINGS NEED TO HAPPEN. I WANT TO REPEAT WHAT I THINK I HAVE HEARD. COUNCIL IS SUPPORTIVE OF PURSUING THIS PROJECT THROUGH A BALLOT MEASURE. WHAT I HAVE HEARD FROM COUNCIL IS A MAY BALLOT MEASURE.
[03:15:03]
IS THAT THE BALANCE OF COUNCIL'S WISH?>> THAT'S A HEAVY LIFT. >> IT IS. BUT WE WILL SHOOT FOR THAT GOAL. IF NOT, IF COUNCIL IS STILL INTERESTED WE COULD GO TO A NOVEMBER BALLOT. BUT MAY IS JUST AROUND THE CORNER. 14TH OF FEBRUARY. YEAH. SO IT WOULD BE ON THE 13TH'S AGENDA.
>> THIS MAY? >> THAT'S WHAT I HEARD COUNCIL
SAYING. >> I THOUGHT WE WERE TALKING
NEXT MAY. >> TO GET THE FEDERAL FUNDING, THAT HAS TO BE THIS MAY. WAS THAT CORRECT?
>> IF COUNCIL SAID MAY WOULD BE ABSOLUTELY THE BEST IF IT PASSED IN MAY. BUT IT IS TIGHT TO GET THAT ON. BUT IF WE HAD IT SCHEDULED FOR NOVEMBER AND WE ARE APPLYING FOR THE GRANTS IN AUGUST, WELL, UP THROUGH AUGUST, SEPTEMBER, THAT HELPS WITH OUR COMPETITIVENESS IF WE HELD IT IN NOVEMBER, THEN, THAT IS TAKEN INTO CONSIDERATION IN OUR APPLICATION. THAT WON'T HAPPEN UNTIL AFTER THE FIRST OF 26. THIS TIME NEXT YEAR. WE ARE COMPETITIVE WITH THE OTHER AIRPORTS YOU ARE WORKING WITH.
>> MY PERSPECTIVE IS YOU DO IT IN MAY. IF YOU DON'T DO IT IN MAY, YOU ARE 12 MONTHS AWAY BEFORE YOU HAVE THE BIDS AND YOU INCREASE YOUR CONSTRUCTION COSTS BY A FACTOR OF I DON'T KNOW HOW MUCH PERCENT. THAT IS JUST REALITY OF CONSTRUCTION. WE ARE GOING TO PROCEED FORWARD. WE'LL BRING AN ITEM AND LET THE LEGISLATIVE PROCESS DO ITS FUNCTION. MAYOR, WE HAVE TO CHANGE HORSES HERE. ON THE PRESENTATION. SO WE HAVE TO SHUT THIS DOWN. AND BRING IT BACK UP. IT MAY BE A GOOD TIME. IT IS
NOON. >> WE HAVE TO GIVE OUR INTERPRETER AN HOUR FOR LUNCH TOO.
>> SO IT MAY BE A GOOD TIME TO DO THAT. AND THEN WE WILL BE READY TO GO TO TALK ABOUT THE CONVENTION CENTER IMPROVEMENTS
AFTER LUNCH. >> ALL RIGHT. PERFECT. BREAK FOR
LUNCH. >> WHAT TIME DO YOU WANT
>>> THIS ITEM WILL BE AT THE CONVENTION CENTER. AND WE WILL TALK ABOUT THE WORK GARFIELD HAS DONE WITH PARTNERS. COUNSEL WILL RECALL THAT SEVERAL MONTHS AGO, WE ENTERED A CONTRACT WITH GARFIELD PUBLIC-PRIVATE TO GO THROUGH AN EXERCISE OF REIMAGINING AND RE- VISIONING THE CENTER. LOOKINGAT THE INFRASTRUCTURE . THE ARTERIES AND VEINS AND ORGANS OF THE BOWELS OF THE CONVENTION CENTER IF YOU WILL . AND WHAT MIGHT BE NEEDED TO MAKE SURE THAT IT WILL LAST ANOTHER 50 YEARS. AND THEN FROM A COSMETIC STANDPOINT, WHAT CAN WE DO TO MINIMIZE THE TIME WARP EXPERIENCE GOING FROM THE HOTEL TO THE CONVENTION CENTER .
AND HOW DO WE MODERNIZE AND UPDATE THE FACILITIES SO THEY ARE RELEVANT FOR THE CONVENTION NEEDS WE ARE EXPERIENCING TODAY AND THE CONVENTIONS WE ARE TRYING TO ATTRACT? I WOULD LIKE TO INVITE STEPHEN GAL WORTH UP HERE. STEPHEN IS AN ARCHITECT.
VERY INTELLIGENT AND VERY CREATIVE MAN. STEVE, COME ON UP.
>> LOW MAYOR AND COUNCIL. THANK YOU FOR HAVING US HERE . AS ROBERT SAID, WE HAVE BEEN -- YOU BROUGHT US ON APRIL 2024 AND WE SPENT THE BALANCE OF THE YEAR REALLY DOING THIS STUDY . AND WE WORKED WITH TIFFANY AND HER TEAM AT THE ASM. WE WORKED WITH JOHN K AT THE HOTEL TO REALLY FIGURE OUT HOW THESE TWO PIECES WORK TOGETHER. BECAUSE THAT IS REALLY THE IDEA, TO BRING IN THIS HOTEL CONVENTION CENTER TO MAXIMIZE HIGH-IMPACT BUSINESSES FOR THE CITY OF ABILENE. IT IS MEANT TO BE A GREAT VENUE FOR THE CITIZENS OF ABILENE AND THE AUDITORIUM AND THE EVENTS THEY BRING IN FOR WEDDINGS, ET CETERA. BUT REALLY TO ATTRACT HIGH-IMPACT MULTI- NIGHT EVENTS. PEOPLE THAT FILL UP THE WHOLE CITY. NOT JUST THE DOUBLETREE BUT ALL THE HOTELS. WE BROUGHT
ON A TEAM. >> STEPHEN, REALLY QUICK. CAN WE
[03:20:06]
GET THE INTERPRETER WINDOW ON? >> THANKS.
>> I JUST WANTED TO MAKE SURE THEY WERE AWARE OF THE
INTERPRETER WINDOW. >> DO WE HAVE TO WAIT?
>> IT IS NOT LEGALLY REQUIRED. >> I HAVE QUESTIONS ABOUT THE
HALFTIME SHOW . >> IT'S THE DALLAS COWBOYS
>> WE HAD GARFIELD , WE LOVE DOING CONVENTION CENTERS . A WORLD-CLASS TEAM. FOR THE AUDITORIUM IN THAT SPACE. THE INTERIOR DESIGNER OR THE KITCHEN DESIGN. AND THEN ALL THE MECHANICAL. WE BROUGHT IN THE TEAM HERE FOR LOOKING AT THE
COSTING. >> I'M GOING TO GO THROUGH, I THINK 26 SLIDES. WE CAN GO THROUGH THESE AS QUICK AS YOU WOULD LIKE. BUT I WOULD LIKE TO HAVE SOME TIME AT THE END FOR QUESTIONS. I'M GOING TO SKIP THROUGH THIS ALREADY. I'M TRYING TO SAVE TIME. THE EXISTING DRAWINGS, YOU GUYS KNOW THE SPACE. IT IS THE BLOOD SPACE. VERY IMPORTANT TO THE CITY OF ABILENE. IT HAS GOTTEN A BIT TIRED. AND HERE IS GOING TO SHOW YOU , THIS STUDY REALLY TOUCHES EVERY SPACE. IF YOU LOOK AT THE KEY AT THE TOP RIGHT, THE IT. EXHIBIT HALL IS PROBABLY THE SPACE BAR WE ARE DOING THE LEAST AMOUNT OF WORK BECAUSE YOU HAD JUST SPENT A SIGNIFICANT AMOUNT OF MONEY ON THE LIGHTING . THAT SPACE IS GREAT. WE NEED TO DO SOME THINGS ALONG WITH ASM FOR CONCESSIONS AND SOME THINGS FOR POWER ALONG THE WALLS . OTHER THAN THAT, THAT SPACE IS IN PRETTY GOOD SHAPE. HE GONE LOOK AT THE PINK AREAS ON EITHER SIDE OF THE AUDITORIUM . THOSE ARE CALLED THE TERRACES. I THINK WE WILL DO SOME GREAT THINGS THERE . WE WILL SHOW YOU THE VIP EXPERIENCES AND BEING ABLE TO DO EVENTS ON THOSE SPACES . THAT WOULD BE SPECTACULAR. AND THEN THE AUDITORIUM, SOME OF THE BIGGEST AMOUNT OF WORK TO BE DONE THERE AND THEN YOU WILL SEE A LOT OF GREAT GRAPHICS AND RENDERINGS SO YOU CAN UNDERSTAND IN REAL LIFE WHAT THAT LOOKS LIKE. ALL THE WAY ON THE RIGHT-HAND SIDE BACKSTAGE , BEHIND THE STAGE, THE DRESSING ROOMS. IS A VERY IMPORTANT -- TO HAVE GREAT DRESSING ROOMS SEEK GET THE RIGHT BACK TOS IN THE RIGHT SHOWS HERE. IF YOU DON'T HAVE THOSE SPACES FOR FOLKS, YOU WON'T GET THOSE SHOWS. THEY ARE JUST NOT GOING TO COME TO THIS VENUE. AND THEN THE GREEN ROOM. ONE OF OUR FAVORITE SPACES. I KNOW IT IS ROBERT'S FAVORITE COFFEE TABLE.
THE WAGON WHEEL COFFEE TABLE. THE TOP OF THE PAGE, THE ORANGE SPACES ARE ALL MEETING ROOMS . YOU WILL SEE THAT THOSE WILL BE BROUGHT UP TO MODERN STANDARDS. AND IN THE CONFERENCE CENTER ON THE FAR LEFT. YOU SEE THE BALLROOM . AND ANOTHER AREA THAT IS REALLY IN NEED , THE RESTROOMS. ALL THE RESTROOMS ARE JUST PAST THE POINT . AND THEN CONCESSIONS, ONE OF THE BIG THINGS THAT I THINK ASM CAN DO IS HELP DRIVE SALES OF CONCESSIONS , DRINKS, FOOD, ET CETERA. ONE OF THE OTHER BIG THINGS WE WILL TALK ABOUT, WE HAVE HAD A NUMBER OF DISCUSSIONS ABOUT, ARE THE KITCHENS THERE. THERE ARE NO KITCHENS REALLY.
THERE IS A SPACE CALLED THE KITCHEN BUT IT HAS VERY LITTLE EQUIPMENT. THEY REALLY CAN'T PRODUCE A CATERED MEAL FOR
[03:25:01]
SOMEBODY OUT OF THE KITCHEN. SO WE WANT TO TALK ABOUT WHAT THE OPTIONS ARE THERE. THAT IS JUST GENERALLY SHOWING YOU THAT. THE FIRST SPACE WE WILL TALK ABOUT IS THE ATRIUM SPACE. PROBABLY MY FAVORITE SPACE AND ALL OF ABILENE. I LOVE THIS SPACE. IT IS A GREAT SPACE FOR A COCKTAIL RECEPTION OR FOR A BIG BANQUET DINNER OR A WEDDING . ON THE RIGHT-HAND SIDE, YOU SEE SOME OF THE IMAGERY . THE WOOD. THINGS THAT ARE IMPORTANT THERE. HIGHS CEILINGS AND AN ART LIGHT FIXTURE AND STAIRS THAT GETS YOU UP TO THE MEETING SPACE . T■HES ARE KIND OF CAPTURING THESE IDEAS . NOW YOU WILL SEE, AND I WILL TOUCH ON THAT. THAT IS AN ACTUAL RENDERING LOOKING AT THE SPACE . AGAIN, THE FLOORING, VERY SIMILAR TO WHAT YOU HAVE HERE. BEAUTIFUL. ALL WE WOULD DO THERE IS TOUCH UP THE SPOTS THAT NEED TO BE TOUCHED UP AND POLISH THAT FLOOR AND MOVE ON. NEW ACCENT TILE AT THE STAIRS.THERE IS BEAUTIFUL WOOD. THE SAME WOOD HERE. WEREALLY WANTED TO DO WHATEVER WE COULD TO SAVE THE WOOD . YOU LIKELY CAN'T RESTORE THIS WOOD BECAUSE OF ALL THE THINGS IN THE WALL BEHIND THE WOOD AND THE ADHESIVES THAT THEY USE. JUST NOT GOING TO BE ABLE TO TAKE THAT AND REFINISH IT AND KEEP THAT. WE ARE LOOKING AT DOING TILE AS YOU SEE ON THE TWO ENDS WHERE THE NEW STAIRS COME IN. THEY ARE LIGHT AND GLASSY. THE BALCONY , WE ARE WRAPPING ALL OF THAT. THERE ARE THESE BIG CONCRETE DOUBLE T 'S.
THEY ARE COVERED IN, YOU DON'T KNOW WHAT. YOU DON'T WANT TO TOUCH IT. WE WILL WRAP THAT IN DRYWALL AND TAKE DOWN THE RAILING. IT IS HEAVY. PUT IN A GLASS HANDRAIL AND CONNECT THE MEETING ROOMS. THE MEETING ROOMS, THAT IS WHERE HE MET YOU ALL FOR THE FIRST TIME IN THE RFQ PROCESS AND THOSE MEETING ROOMS. AND WE WILL SHOW YOU SOME OF THE DETAILS WE WILL DO THERE.
NEW STAINED MILLWORK ON THE WALL. NEW STAINED DOORS.
MONUMENTAL STEERS . DECORATIVE ART FEATURED GLASS ART PIECE IN THE CEILING, ET CETERA. YOU WILL ALSO SEE SOMETHING IN THE MIDDLE THERE. PORTABLE BARS. THAT IS AN IMPORTANT PART. WE WILL TALK ABOUT THAT IN A BIT. REALLY, THE ABILITY. WHEN YOU COME TO AN EVENT OR SHOW , YOU HAVE A BREAK. BUT YOU DON'T HAVE A BREAK TO STAND IN LINE FOR 50 PEOPLE. SO YOU NEED TO BE ABLE TO GET EVERYBODY IN. IT OUT FOR THE BREAK. GET THEIR DRINK AND SNACK OR WHATEVER AND BACK IN.'S ABILITY ABILITY TO HAVE THESE PORTABLE BARS AND BE ABLE TO SET THEM UP WITH POWER AND WHATNOT SO THEY CAN SERVICE THE FOLKS AND GET THEM BACK IN THEIR SEATS . IT IS IMPORTANT. YOUWILL SEE THAT THROUGHOUT. AND THEN DIGITAL SIGNAGE. YOU WILL SEE THAT AGAINST THE WALLS.
DOING THINGS LIKE HAVING BOTTLE FILLERS AND THINGS INSTEAD OF DRINKING FOUNTAINS. NOBODY IS GOING UP TO THE DRINKING FOUNTAIN AND DOING THAT ANYMORE. SO THAT IS THE ATRIUM SPACE.
HERE ARE THE TERRACES. THESE ARE TWO REALLY NICE AREAS . THEY ARE THE OPEN PATIO SPACES ON EITHER SIDE OF THE AUDITORIUM. I THINK HAVING A SPACE THAT YOU CAN HAVE MAY BE A VIP EXPERIENCE OR KIND OF MEET THE CASTER THOSE KINDS OF THINGS, OR FOLKS THAT HAVE SEATS, BE ABLE TO COME IN AND HAVE A COCKTAIL OR HAVE SNACKS BEFORE THE SHOW. IT IS REALLY IMPORTANT. IT IS IMPORTANT TO GET THOSE THINGS AND GIVE PEOPLE AN OPPORTUNITY TO HAVE AN EXPERIENCE THAT IS SPECIAL . SO YOU WILL SEE KIND OF WHAT THAT WOULD FEEL LIKE . A AND, SIMPLE FINISHES THAT WILL BE ABLE TO BE TAKEN CARE OF AND OKAY IN THE SUN. THEY CAN GET WET. THE FURNITURECAN GET WIPED OFF AND THE FLOORS CAN GET MOPPED. SOME PLANTING OUTSIDE AND SOME NICE LIGHTING . JUSTMAKE IT A SPACE.
THINGS THAT RIGHT NOW ARE DIFFICULT TO HAVE OUT THERE. THE AUDITORIUM AND THE PRE-FUNCTION SPACE . AGAIN, THE CARPET HAS BEEN THERE FOR QUITE A WHILE. AND SO WE LOVE IT. BUT I THINK WE ARE READY TO GO TO SOMETHING NEW AND SAME WITH SOME OF THE WALL FINISHES, ET CETERA. I WILL SHARE THOSE HERE . ONE IMPORTANT
[03:30:01]
THING TO TOUCH ON FIRST IS ADA. IT IS VERY DIFFICULT TO GO ANYWHERE IN THE CONVENTION CENTER IF YOU ARE NOT MOBILE. SO RIGHT NOW , IF YOU HAD YOUR MOM, AND DAD IN A WHEELCHAIR AND YOU ARE GOING TO TAKE THEM IN A SHOW AND THE SEATS WERE NOT IN THE VERY BACK , YOU WILL HAVE TO TAKE THEM OUT THE DOORS INTO THE PARKING LOT, AROUND THE CORNER AND COME BACK IN TO GET TO THAT SPACE. THAT IS JUST NOT ACCEPTABLE. YOU REALLY NEED TO BE ABLE TO HAVE THE ABILITY TO BRING SOMEBODY FROM THE CHECK IN AREA , A SPOT TO GET A COCKTAIL OR SOMETHING, AND GET THEM TO THEIR SPACE SAFELY. AND THAT IS WHAT THIS DOES. WE HAVE COME IN AND RAMPED THIS SITE OVER HERE. YOU ARE ALL FAMILIAR WITH IT. IT IS A FLAT AREA. THREE STEPS. VERY DIFFICULT TO NAVIGATE.ESPECIALLY FOR AN ELDERLY PERSON. EVEN IF THEY CAN WALK.
MAYBE HAVE A CANE. VERY DIFFICULT. SO THE ABILITY TO GET PEOPLE IN AND OUT OF THERE AND YOU WILL SEE WHAT WE ARE TALKING ABOUT. SO, I CAN'T TELL YOU HOW MANY OPTIONS WE DID , ROBERT.
BUT WE PROBABLY DID 10 OPTIONS UNSEATING .
>> AT LEAST. >> AND PEOPLE WAY SMARTER THEN ME , PEOPLE THAT ARE EXPERTS ON SIGHT LINES AND SEEING AND MOVABLE CHAIRS AND WERE THE MIXING BOARD GOES, ALL THOSE THINGS ARE IMPORTANT TO THINK ABOUT. BUT WE REALLY TOOK THE SPACE . THE KEY TAKE AWAY FROM THIS, IS IF YOU LOOK AT THE FAR LEFT IMAGE , YOU WILL NOTICE THERE IS A HUGE AISLE THAT HAS BEEN KIND OF CUT THROUGH ACROSS THE SPACE. ONE OF THE ISSUES WITH CONTINENTAL SEATING IS, RIGHT NOW, YOU ARE PERFORATING THE AUDITORIUM AND DOORS ALL ALONG. DOORS ARE OPENING AND CLOSING CONSTANTLY. SEE YOU GO TO THE DOOR AND YOU CAN ONLY GET TO THOSE COUPLE ROWS OF SEATS AND YOU DO THE SAME. THAT IS REALLY NOT APPROPRIATE. YOU CAN SEE HERE THERE IS AN AISLE ON THE BACK TWO THIRDS ON EACH SIDE. WHEN YOU COME IN AND YOU COME TO THE CLOSER AREA OF SEATING CLOSER TO THE STAGE, THERE IS AN AREA KIND OF AT THE THIRDS MARK. IT IS VERY IMPORTANT. WE HAVE ABOUT 2000 SEATS. I THINK WE WANTED TO STAY AROUND 1900 SEATS. THAT GETS US THERE RIGHT HERE. YOU ALSO SEE IN THE MAIN AISLE THAT CUTS ACROSS , LOOK AT ALL OF THE RED SEATING. THAT IS ALL ADA SEATING. AND YOU CAN SIT THERE WITH YOUR COMPANION . WE CAN HAVE A CHAIR THERE WITH YOU SO A GROUP CAN SIT TOGETHER AND THAT SPACE . AND THE BACK, YOU WILL SEE THE DARK AREAS. I WILL SHOW YOU SOME RENDERINGS. THE DARK AREAS IN THE BACK, THE ABILITY TO DO SOME BOXES. CAN HAVE FOOD SERVED TO THE BOXES. THEY ARE IN THE BACK . THEY WON'T BE OUT IN THE WAY AND BOTHERING FOLKS BUT YOU CAN GET IN AND OUT OF THERE AND SERVE THOSE FOLKS. SO JUST ANOTHER AMENITY THAT PEOPLE CAN KIND OF HAVE TO HAVE A LITTLE BIT OF A BETTER EXPERIENCE. THE TOP, YOU SEE , THAT IS THE BALCONY, THE UPPER MEZZANINE AREA. SO YOU SEE THIS KIND OF RENDERING. A LOT OF SEATS THERE IN THE FOREGROUND. AND HE CAN SEE THE AISLES THAT CUT IN IS TO GET CLOSER TO THE STAGE . REALLYLOOKING AT MINIMIZING THE NUMBERS OF OPENINGS INTO THE AUDITORIUM. HAVING WHITE LOCKS.
RIGHT NOW IF SOMEBODY GETS UP AND LEAVES AND OPENS THE DOOR, LIGHT SPILLS IN. YOU DON'T WANT TO HAVE THAT. YOU WANT TO GO INTO THE DARK LITTLE ROOM AND OUT. OBVIOUSLY, INCREASED ACCESSIBILITY FOR PATRONS. GETTING RID OF ALL THE SIDE ENTRANCES. ADDING AISLES. LIKE I TOLD YOU, WE HAD PROBABLY 10 OPTIONS WHERE WE LOOKED AT ALL DIFFERENT AISLE CONFIGURATIONS.
THE BOXES IN THE BACK , ENHANCED SEATING OPTIONS FOR UPGRADES. ET CETERA. AND THAT SHOWS YOU THAT SPACE. THIS WAS OPTION D. I THINK THE PREFERRED OPTION DOESN'T HAVE THE AISLES IN THE MIDDLE , ON THE UPPER HALF OF THE , OKAY. BUT YOU GET THE GENERAL IDEA THAT IT IS GOING TO BE AN EASIER SPACE TO GET IN AND OUT OF. I THINK THERE ARE REALLY ONLY TWO ITEMS THAT THE PUBLIC
[03:35:03]
COMMENTED ON ABOUT THE CONVENTION CENTER, THAT WE SEE ON SOCIAL MEDIA . ONE IS THE SEATS AND THE ABILITY TO GET IN AND OUT. THAT IS NUMBER ONE. NUMBER TWO IS THE ACCESSIBILITY GREAT BEING ABLE TO GET IN. SO WE WANT TO MAKE SURE THOSE TWO THINGS GET SOLVED. AND THAT IS THE OPTION D, AS YOU CAN SEE. IF YOU LOOK TO THE LEFT, THIS IS THE OPTION SHOWING AISLES GOING UP AT THE THIRD PLAINS IN THE UPPER SECTION OF THE GROUND LEVEL. THIS KID SAYS TO ABOUT 1800 SEATS. PROBABLY LOSING ANOTHER HUNDRED SEATS. I THINK THE PREFERRED OPTION IS THE FIRST ONE WE SHOWED YOU. AND THAT SHOWS THE AISLES GOING ALL THE WAY UP THROUGH THAT SPACE. IT REALLY JUST MAKES IT SO YOU DON'T HAVE TO JUST KIND OF SHIMMY ALONG THE ENTIRE ROAD TO GET INTO YOUR SEAT. IT MAKES IT A LOT EASIER. AND I THINK IT GIVES YOU A LOT MORE WE BE SEATS THAT ARE TYPICALLY SOLD AT A HIGHER RATE. SO YOU CAN MAKE MORE MONEY AND PEOPLE ARE WILLING TO PAY MORE IF THERE ARE MORE END AISLE SEATS.>> YOU ARE SAYING THAT THIS IS OPTION D. YOU WERE SAYING THAT
YOU ARE LIKING OPTION C? >> THERE ARE TWO OPTONS WE ARE SHOWING HERE . IT'SNOT WHAT I PREFER. I THINK ASM FELT LIKE THEY WANTED TO STATE A CERTAIN NUMBER OF SEATS. THIS OPTION , THEY LOST ABOUT 100 MORE SEATS. SO ABOUT 1800 SEATS. I DON'T WANT TO PUT TIFFANY ON THE SPOT BUT THIS IS ABOUT 1800 AND THE OTHER OPTION IS 1900. I THINK THAT WAS THE PREFERRED AMOUNT OF
>> THEY ARE TRYING TO ROUTE THE RATHER SPACES. SO THE GROUPS ARE GOING TO THE 2000 SEAT SIZED PLACES. WE ARE GOING TO LOOK IN THE BACK. THESE ARE REALLY IMPORTANT SPACES. THE PUBLIC DOESN'T REALLY SEE THESE. IF YOU ARE DOING AN EVENT OR YOUR KIDS ARE DOING A BALLET THING, THESE ARE THE SPACES THEY WILL BE GETTING READY YET. EVEN MORE IMPORTANT, THE TALENT COMING FOR SOME SORT OF A BROADWAY SHOW . THEY WANT TO BE ABLE TO SAY, WE HAVE GREAT PLACES TO CHANGE. WE HAD A GREAT GREEN ROOM AND THIS.
THATIS THE KIND OF STUFF THE TALENT TALKS ABOUT AND HELPS GET YOU INTO THAT ROTATION. THIS IS JUST A RENOVATION OF THE CHANGING ROOMS RIGHT NOW. ALL THE CHANGING ROOMS ALONG THE BACK . NEW PORCELAIN TILE. NEW WALLS WITH WALLCOVERINGS, COURTSIDE VANITIES, BACKLIT MIRRORS AND ARCHITECTURAL LIGHTING. JUST THE THINGS THEY NEED TO DO. MAKING IT EASY TO CLEAN AND KEEP NEAT . AND MAKE IT SAFE. AND LED SCREENS.
CURRENTLY, MOST , AND MOST OF THE BACK OF THE HOUSE SPACES, YOU WILL HAVE SCREENS SO THAT THE TALENT KNOWS WHERE THEY ARE IN THE PROGRAM SO THEY KNOW THEY NEED TO BE MOVING OUT OR NOT MOVING OUT AND NOT HAVE TO HAVE SOMEBODY YELLING, WE ARE AT SO AND SO. OBVIOUSLY, THIS WON'T BE ALL WHITE. THESE ARE IMAGES TRYING TO SHOW YOU WHAT THE SPACES LIKE. BUT THEY ARE NOT
RENDERED WITH FINISHES. >> ONE OF MY FAVORITE PLACES AS THE GREEN ROOM. IT IS NOT JUST A PLACE FOR THE TALENT TO HANG OUT. BUT A SPACE WHERE WHEN IT IS NOT BEING USED FOR PERFORMANCE, YOU CAN PUT A CONFERENCE TABLE THERE AND YOU CAN SELL THIS FOR A BOARD ROOM. YOU CAN DO A BOARD LUNCHEON . A RETREAT OR AN EXECUTIVE GROUP . YOU WILL SEE THE SPACES NICE.
REALLY MAKING IT COMFORTABLE AND CASUAL. BUT ABILENE. ONE OF THE THINGS WE THINK WE WANT THIS TO BE AS WE WANT IS TO BE A BROTHER OR SISTER TO THE HOTEL , THE FEEL OF THE HOTEL. THEY HAVE TO TALK TO EACH OTHER. A LOT OF THE PEOPLE THAT ARE GOING, WILL BE GOING TO BOTH. SO THEY CAN'T BE TOTALLY DISJOINTED. BUT YOU WILL SEE IN THE RENDERING, IT IS A GREAT SPACE . AGAIN,YOU CAN HAVE MULTIPLE MONITORS IN THE SPACE . YOUCAN HAVE AN AREA IN THE BACK WHERE YOU CAN SERVE A BUFFET . YOU CAN DO THE MEET AND GREAT. YOU CAN DO VIP STUFF HERE. ALL THE FURNITURE CAN MOVE OUT AND WE CAN PUT IN A BOARD TABLE. ET CETERA.
[03:40:12]
>> THAT IS THE INTERIOR OF THE NEW MEETING ROOMS AND BOARD ROOMS. AS WE SEE, THERE IS NO PAINTED CMU.
>> I THINK THE IMPORTANT THING . BOARDROOMS ARE MEANT TO BE CLOSED OFF. THEY DON'T NEED A LOT OF LIGHT. THEY DON'T NEED WINDOWS. ALL THE BOARDROOMS ON THE UPPER LEVEL THAT ARE ON TOP OF THE ATRIUM WILL BE GREAT SPACES FOR PEOPLE TO FOCUS AND HAVE A MEETING OR HAVE A SMALL CLASS. YOU CAN SET THESE UP HOWEVER YOU LIKE. THAT IS KIND OF ONE OF THE ONES ON THE SECOND LEVEL. KIND OF IN CLASSROOM MODE. AND ONE OF THEM SHOWN IN KIND OF A BOARD ROOM . SOAPPROPRIATE FINISHES, CARPET, DRYWALL WITH A DROP CEILING IN A LIGHT FIXTURE THAT IS NICE.
THEABILITY TO MEDIA THAT YOU CAN PRESENT OR DO TEAMS MEETINGS OR WHATNOT BE ABLE TO SERVE LUNCH AND ALL THOSE THINGS. THIS IS THE CONFERENCE SPACE IN THE BACK. AGAIN, I THINK A LOT OF THIS IS JUST NEW AIR WALLS . RESTORING THE EXISTING FLOORING . VINYL WALL COVERINGS ON THE WALLS . WOOD WRAPS AROUND THE DOORS AND GOING BACK TO THESE DOORS. CLUSTERS WERE PUT IN AT SOME POINT. MAYBE NOT THE MOST SUCCESSFUL THING FOR A GROUP TRYING TO HAVE A PRESENTATION. THEY CAN KIND OF BE DISTRACTING AT SOME POINT . BUT AGAIN, HAVING COURTS TOPS AND MILLWORK THERE. ON THE INSIDE, CARPET AND NEW CEILINGS AND AN INTERIOR WOOD STORE . NEW BANQUET CHAIRS AND TABLES . AND THEN BATHROOMS. THE PUBLIC, YOU GO TO AN EVENT AND YOU REMEMBER TWO PLACES. YOUR MEMBER THE VENUE AND YOU REMEMBER THE BATHROOMS. IT IS IMPORTANT THAT THEY ARE NICE. THEY COULD BE WEAR AND TEAR. THEY NEED WORK AND NEED TO BE MAINTAINED. OPERATED AND CLEANED EASILY. SO USING THINGS LIKE SMALL TILE, WHITE TILE WITH BLACK GROUT . THAT IS HARD TO GET IN THERE AND CLEAN. YOU WANT SOMETHING THAT EVERYBODY KNOWS IS CLEAN. AND WE ARE REALLY SEEING MORE AND MORE GOING TO THE COUNTRY CLUB TOILET WHERE YOU GET A COMPARTMENT. IS NOT JUST A WALL THAT STOPS .
ANDGIVES PEOPLE LITTLE MORE PRIVACY.
>> AND NO MORE TILE ? >> THERE WILL BE TILE -- IN MY.
>> I'M TALKING ABOUT THAT TILE.
>> YES. >> YOU CAN DO CHOPPED -- DO TILE LIKE THAT ON A BACKSLASH. BUT BEHIND THE TOILET, IT BECOMES DIFFICULT . A COUPLE THINGS TO TALK ABOUT REALLY QUICK. IS, SOME OF THE THINGS THAT WON'T BE SEXY AND FUN.
PLUMBING . THE PLUMBING BEHIND ALL THESE RESTROOMS FOR THIS MOST PART IS TOWARD THE END OF ITS LIFE. THAT IS LIKELY ALL GOING TO NEED TO BE REPLACED. MUCH OF THE SEWER PIPING WE HAD AT SCOPE , WHEN WE GET TO THE BUDGETS, YOU WILL SEE $2.3 BILLION IN THE SEWER PIPE. IT IS 50 YEARS OLD. MOST OF IT IS DONE. SO WE WILL TALK ABOUT THAT AND TALK ABOUT A PRIORITY LIST THAT WE HAVE. THERE ARE22 ITEMS YOU CAN PICK TWO OR FIVE CONCESSIONS IS A BIG PIECE . RENÉE WANT TO SERVE FOLKS. A LOT OF PEOPLE DON'T WANT TO JUST COME AND GET CHIPS OR CANDY. THEY WANT TO HAVE FRUIT OR VEGETABLES. YOU WANT TO GIVE PEOPLE FRUIT -- FRESH OPTIONS ON SNACKS AND I THINK THAT ASM IS PREPARED TO GIVE A GREAT OFFERING OF CONCESSIONS. NOT JUST SO DOES BUT ALL KINDS OF STUFF. YOU WILL SEE IN THE CONCESSION AREAS THEY ARE BOTH OFF THE ATRIUM IN THE AUDITORIUM AREA ? THEY LIKE TO DO THAT AT BOTH OF THOSE .
[03:45:04]
>> LET'S TALK NUMBERS. THERE ARE 22 AREAS KITCHEN. THESE ARE IN PRIORITY. THIS IS JUST A SUGGESTION. IF WE TOOK THE TEAM TOGETHER AND PUT WHAT WE THOUGHT WAS A PRIORITY LIST, WE THINK
THE KITCHENS ARE AT THE TOP. >> THIS RIGHT HERE, THESE TWO ITEMS, NUMBER ONE AND NUMBER TWO CONTEMPLATE THE ABILITY FOR ASM TO PRODUCE THE FOOD AND HOUSE. TO THE SAVER PROGRAM . YOU CAN DO EVERYTHING HERE ONE OF THE THINGS YOU LIKE THAT IS, HOW CAN WE HAVE THIS SYNERGY WITH THE HOTEL AND HAVE COME ONE AND ONE EQUALS THREE. AND LETTING THE PROVIDING BE BY THE HOTEL. MAYBE THEY DON'T DO ALL THE CONCESSIONS BUT WHAT CAN THE HOTEL DO TO PRODUCE THINGS LIKE 200 SAFE DINNERS FOR MEETING .
LOOKING AT THIS AS AN OPTION, WE LIKELY SEE THE KITCHENS THAT WOULD HAVE TO OCCUR IN THE CONVENTION CENTER . PROBABLY BE A THIRD TO A HALF OF THAT NUMBER. THEY CAN DO EVERYTHING ON THEIR OWN. THE HOTEL WILL PROVIDE THAT. THEY STILL NEED TO BE ABLE TO HAVE COLD STORAGE. SO THINK OF IT. YOU HAVE 600 PEOPLE. YOU CAN PRODUCE 600 SALADS . AND THEY HAVE TO GO SIT IN THE COLD STORAGE UNTIL THEY ARE READY TO BE SERVED. THEY CAN'T SIT AT ROOM TEMPERATURE. NOBODY WANTS A ROOM TEMPERATURE SALAD. IN THE SAME WITH HOT FOOD. HOT FOOD CAN BE BROUGHT OVER AND IT NEEDS TO BE HELD. AND SO THERE ARE 800 PLATES OF FISH , CHICKEN OR STEAK. IT NEEDS TO BE AN APPROPRIATE EQUIPMENT AND THAT TAKES A LOT OF ROOM. I KNOW TIFFANY AND HER TEAM AND I KNOW JOHN K AND HIS TEAM ARE COMMITTED TO WORKING TO FIGURE OUT WHAT IS THE BEST THING FOR THE CITY. THEY ARE BOTH CITY FACILITIES. THE FOYER SPACE , THAT SPACE I THINK IS REALLY THE FRONT DOOR TO THE ENTIRE SPOT . AND I THINK IT IS A VERY IMPORTANT PLACE FOR EVERYBODY. AND I THINK THAT IS A VERY IMPORTANT SPOT . THESANITARY UNDERGROUND REPLACEMENTS, I JUST DON'T KNOW THAT YOU CAN WAIT ON THAT ANYMORE. I THINK THAT IS SOMETHING , IF YOU WERE ONLY GOING TO DO A HANDFUL OF THINGS, I THINK YOU HAVE TO SERIOUSLY CONSIDER DOING THAT PEACE IS ONE OF THE TOP PRIORITIES . SAME WAY, YOU SEE CONCESSIONS NEXT. THAT IS UP ON THE LIST HIGH BECAUSE THAT IS ONE AREA WHERE ASM THINKS THEY CAN REALLY START TO DRIVE REVENUE , BY BRINGING IN A REALLY GREAT CONCESSIONS OPTION. AND IN THE LOBBY RESTROOMS, THAT NOT ONLY INCLUDES FINISHES AND TOILETS BUT THE PLUMBING IN THE WALL .
ONE OF THE THINGS THEY HAVE RIGHT NOW , AND YOU MIGHT REMEMBER THIS FROM SOME OF THE CONVERSATIONS IS, THEY WILL HAVE A LEAK . THEY WILL FIND THE LEAK AND FIX IT AND IT POPS UP SOMEWHERE ELSE. THE PIPES ARE GETTING TO THE POINT WHERE, WHEN THIS IS THE WEAKEST SPOT, YOU FIX THAT AND THE WEAKEST SPOT IS OVER HERE. SOMETIMES IT TAKES DAYS OR WEEKS TO FIGURE OUT WHERE THE WATER IS COMING FROM . I THINK THAT RESTROOMS ARE TOP PRIORITY. SAME WITH THE AUDITORIUM RESTROOMS . BACKSTAGE DRESSING ROOMS AND THE DRESSING ROOMS . THE BOX OFFICE. RIGHT NOW, THEY ARE HAVING A DIFFICULT TIME WITH SALES AND HAVING THE PUBLIC BE ABLE TO COME IN AND GET TICKETS FROM THE FRONT. HOW DOES ALL THAT WORK? WE ARE LOOKING AT A NEW KIND OF CLEANED UP BOX OFFICE OPPORTUNITY THERE . AND THEN THINGS LIKE THE RED CARPET LOBBY. THE LOBBY AREA AROUND THE AUDITORIUM. NEW WALLS AND CARPET, ET CETERA. THE GREEN ROOM AND THE TARIFFS AND PATIOS AND THE CONFERENCE CENTERS, ONE OF THE OTHER BIG ITEMS. THESE ARE TWO BIG PIECES. MEETING ROOMS , PRE-FUNCTION SPACE .
LEADERS AND MEZZANINE AS YOU GO DOWN THE LIST. WHEN THIS WAS PRODUCED AND MAYBE NOVEMBER OR DECEMBER, THE CURRENT PRICING WE SAW FOR THAT WAS ABOUT $60 MILLION. WE ARE LOOKING AT ESCALATING THAT AT ABOUT 5% A YEAR. MAYBE A LITTLE BIT MORE THAN 1% A QUARTER, UP THROUGH WHEN WE THINK YOU COULD ACTUALLY EXECUTE A CMAR AGREEMENT OR A GOP IN THE WINTER OF 25. IT BASICALLY 25 WAS SPENT FIGURING OUT THE BONDS AND DOING SOME DRAWINGS DRAWINGS, THAT NUMBER IS KIND OF ESCALATED TO WHERE WE
[03:50:07]
THINK IT IS AN APPROPRIATE BUDGET TO DO ALL OF THIS WORK.YOU DON'T HAVE TO DO ALL OF THIS WORK. YOU SEE THE ESTIMATED DURATIONS IN MONTHS OF EACH PIECE. IF WE WERE TO DO IT ALL -- YOU CAN'T DO IT ALL AT ONCE, OKAY. WE HAVE TO DO THIS SPACE.
AND THEN GO TO THE SPACE. THIS COULD BE A COUPLE OF YEARS OLD WORK GOING ON. IF YOU SAID DO IT ALL, WE WOULD LOOK AT A PLAN. WE WOULD WORK WITH TIFFANY AND HER TEAM TO FIGURE OUT THE TIMING.
WHERE THERE IS A BIG GROUP COMING AND WE WOULD CLOSE THAT SECTION. AND THEN YOU KIND OF GO AROUND THE SPACE . THE BIGGEST PIECES IN GENERAL ARE AUDITORIUM PIECES AT 18 MONTHS. SO LOOKING AT A YEAR AND A HALF OF NOT HAVING THE AUDITORIUM . IT IS SOMETHING THAT IS NOT GOING TO GET BETTER. THE 18 MONTHS WILL BECOME MORE AND MORE TIME AS YOU HAVE TO DO MORE MORE THINGS TO IT. THAT IS KIND OF THE RECAP. I'M OPEN TO ANY QUESTIONS OR
CONVERSATION THAT YOU WANT. >> THANK YOU. KIND OF WHERE WE ARE NOW , IS IF YOU HAVE QUESTIONS ABOUT THE DESIGN, STEVE CAN HELP ADDRESS THAT FOR THE NEXT PHASE IS REALLY THE POLICY ASPECT. IS THIS SOMETHING YOU WANT TO DO? IS THIS THE RIGHT TIME FOR IT? IN SOME WAYS CAN WE KNOW THINGS NEED TO BE DONE . PART OF IT IS A CAPACITY ISSUE. AND SAID THESE ARE QUESTIONS THAT ONLY COUNSEL GETS TO SELF. IN LIGHT OF THAT, I LOVE TO ANSWER QUESTIONS THE COUNCIL MAY HAVE. STEVE IS AVAILABLE AS WELL. AND KIND OF FACILITATE A DISCUSSION HERE.
>> ROBERT, CAN YOU START US OFF WITH, HOW DOES THE CONVENTION CENTER, WHATEVER VERSION WE DO THIS THEN, HOW DOES THIS FIT WITHIN THE TRIANGLE OF THE DOWNTOWN HOTEL AND THE MEETING SPACE THERE ? ANDTHEN THE HERITAGE SQUARE THAT THE CITY IS ALSO HELPING FUND WITH THEIR AUDITORIUM AS WELL? HAD OF THOSE THREE KIND OF INTERPLAY? AND ARE WE FUNDING ONE TO THE DETRIMENT OF THE OTHER OR YET WE ARE PUTTING MONEY INTO BOTH?
>> A GOOD QUESTION. LET'S START WITH THE SQUARE. I THINK THE AUDIENCE FOR THAT PARTICULAR PRODUCT IS DIFFERENT THAN THE CONVENTIONAL SPACE THAT WE ARE TALKING ABOUT. THEY MAY HAVE A SHARED SPACE WITH PARAMOUNT . IT IS KIND OF A MARKET DYNAMIC.
EVEN THAT WILL BE A LITTLE DIFFERENT. YOU'VE GOT A HIGHLY CREATIVE , ACTIVE ORIENTED MUSEUM AND LEARNING CENTER. AND IT HAS AN AUDITORIUM SPACE THAT WILL BE -- WILL ALLOW FOR CHILDREN TO LEARN AND TO HEAR EXPERTS AND TO BE EDUCATED . THE SAME THING FOR US AS ADULTS. BUT IT IS A DIFFERENT AUDIENCE IN SOME WAYS . YOU ARE TALKING TO THE BOARD . AT HERITAGE SQUARE, THEY THINK THEY WILL PULL FROM 60, 68 COUNTIES IN WEST TEXAS. LOOK AT THE POPULATION THAT COMES. LOOK AT THE ZOO AND THE LIBRARY AND THE OTHER EVENTS WE HAVE NOW . IT IS ABOUT A 68 COUNTY REGION. IT IS HUGE. I THINK THE FACILITY WILL BE ADDRESSING THOSE NEEDS . YOU WILL HAVE A LIBRARY NEED ADDRESSED THAT . AGAIN, MAYBE SOME COMPETITION WITH THE PARAMOUNT BECAUSE THERE WILL BE SOME CREATIVE OPPORTUNITIES AND A SUIT EXPERIENCES TO FIT THAT WITH. THEY ARE REALLY INTENDING TO NOT HAVE THAT COMPETITIVE ARM AND TRYING TO SERVE A NICHE MARKET THAT WE FRANKLY DON'T SERVE RIGHT NOW. WITH THE HOTEL AND THE AUDITORIUM AND THE CONVENTION CENTER, GOING INTO THE HOTEL PROJECT , ONE OF MY BIGGEST CONCERNS IS THAT WE WILL END UP CANNIBALIZING SOME OF THE MANY ACTIVITIES WE HAVE AT THE CONVENTION CENTER. WE HAVE SEEN THAT, TO SOME EXTENT. YOU COULD HAVE A LARGE DINING ENVIRONMENT AT THE HOTEL AND HAVE BRAND-NEW FACILITIES AT THE CONVENTION CENTER FOR PEOPLE IN THEIR LATE 60S, EARLY 70S. SOME PEOPLE CHOOSE THE CONVENTION CENTER. I THINK WHAT WE ARE ABLE TO DO IS ELEVATE THE STANDARDS OF THE CONVENTION CENTER AND BE ABLE TO OFFER THE COMMUNITY . IT IS ABOUT COMPETITIVENESS COMPETITIVENESS. YOUR BUILT ENVIRONMENT . A LOT OF WHAT YOU ARE SELLING. AS CONVENTIONS COME AND AT VENUES, I GUARANTEE THEY LOOK AT ONE OF THE FINISHES OF
[03:55:02]
THIS FACILITY ARE THE BATHROOMS IN THE 60S ORARE THE BATHROOMS MODERN AN UPDATED? IS THIS A PLACE I WOULD WANT TO HANG OUT ? THIS IS THE PLACE WHERE I FEEL COMFORTABLE LEARNING SOMETHING LIKE A TRADESHOW ? I THINK THE CONVENTION CENTER IS LACKING IN THAT AREA FOR SURE . NOT BECAUSE IT'S A BAD SPACE BUT IT IS TIME TO UPDATE THIS THING. SO I THINK THE TWO CAN BE DONE IN A MANNER THAT WILL COMPLEMENT EACH OTHER. THERE IS THE RISK OF COMPETITION JUST BECAUSE THEY BOTH HAVE LARGE DINING AREAS AND THEY BOTH HAVE THE ABILITY TO HOLD CONFERENCES . BUT WHEN WE LOOK AT PUTTING TOGETHER THE FUTURE CONFERENCE NEEDS OF THE CITY, WE BUILDS ABOUT 20 ACRES OF CONVENTION MEETING SPACE AT THE HOTEL. THAT WAS ABOUT HOW MUCH ADDITIONAL SPACE WE THOUGHT THE CONVENTION CENTER NEEDED AT THE TIME IN ORDER TO BE COMPETITIVE.SO TWO BUILDINGS WILL BE AND HAVE BEEN DESIGNED TO COMPLEMENT ONE ANOTHER. TO YOUR POINT, DOES NOT COMPLETELY RESOLVE THIS, I WOULD RATHER BE HERE THAN HERE . THAT'S OKAY. WE HAVE TWO OPTIONS FOR DIFFERENT MARKETS. WHAT YOU CAN DO NOW IS MAYBE HOST TWO THINGS AT THE SAME TIME WHICH JUST HELPS ACROSS THE
WHOLE COMMUNITY . >> THIS PROPOSAL DOESN'T SEEM TO DO ANY UPGRADES FOR WHATEVER THE TERMS ARE BUT THE BIG ROOM AND THE SLIGHTLY SMALLER ROOM. I DON'T KNOW IF THAT IS THE
EXHIBIT HALL OR SOMETHING ELSE . >> THE EXHIBIT HALL. AND IT ADDRESSES THE FOYER AND THEN THE SMALLER EXHIBIT HALL IS THE THINKING, I GUESS THOSE DON'T NEED IMPROVEMENTS OR IT WON'T
FIT IN THE BUDGET . >> THE THOUGHT PROCESS IS WE DID THAT WITH THE 2015 BOND PROPOSAL. THE EXHIBIT HALL SHOULD BE A LARGE FUNCTIONING SPACE. YOU HAVE THE CONCRETE FLOORS AND THE ABILITY TO DO THINGS. SYSTEMS IN PLACE FOR LIGHTING . THERE MAY BE ELECTRICAL UPGRADES IN THIS AREA. I DON'T KNOW IF IT IS INCLUDED IN THE INFRASTRUCTURE .
>> IT DOESN'T HAVE A LOT OF POWER RIGHT NOW.
>> WE THINK IT IS A GREAT SPACE AND IT IS APPROPRIATE.
>> MY -- IT HAS ALWAYS BEEN THE BROWN ROOF. IT IS DATED. IF THERE IS ANYTHING WE CAN DO. A PAINT JOB OR SOMETHING. THE AUDITORIUM HAVING MASSIVE ISSUES. FROM A VISUAL PERSPECTIVE, THAT IS WHERE I'M ON BOARD. I CAN SEE IT HAS EXTERIOR. EXTERIOR MISCELLANEOUS 750. WHAT IS THAT ADDRESSING?
>> . >> IT IS QUARTZ AND STEEL.
>> I DON'T KNOW. I'M NOT A PAINT EXPERT. I DON'T KNOW THAT YOU COULD REFINISH THAT. THERE IS A LOT OF BEIGE IN THE BUILDING. I THINK WE COULD FIGURE OUT HOW TO MAKE THE NICER. THERE ARE FINISHES THAT NEED TO BE FIXED UP A BIT AND I THINK THERE ARE OPPORTUNITIES TO DO SOME NEAT SIGNAGE ON THE BUILDING. I THINK THERE IS AN OPPORTUNITY TO PUT THE EMBLEM UP, THE CITY OF ABILENE OR KIND OF THE BIG STAR KIND OF MOMENT .
>> WE WILL GET YOU A LADDER AND A COUPLE BUCKETS.
>> EVEN IF WE BUILT SOMETHING OVER THE STEAL AND COVERED IT.
IS TO BIG BROWN MARK ON THE CITY.
>> I HAVE TO INTERJECT . I LIKE THE STEEL. I THINK IT IS A RUSTIC ABILENE LOOK. THAT IS JUST ME PERSONALLY. I LIKE THE LOOK. PAINTING STILL DOES NOT LOOK THAT GOOD TO ME. BUT THAT IS JUST A PERSONAL PREFERENCE. I'M NOT ARGUING WITH YOU. ILIKE THE LOOK. ANYWAY, I WANTED TO INTERJECT.
>> I HAVE A FEW OTHER POINTS BUT I DIDN'T WANT TO MONOPOLIZE. MY PREFERENCE LOOKING AT THIS WAS , I THINK SEVERAL PEOPLE MENTIONED THE LIGHTING IN THE EXHIBIT HALLS AS DATED. I DON'T KNOW.
FROM AN AESTHETIC PERSPECTIVE, I HAVE ZERO OPINION. THAT IS WHAT I HAVE HEARD ON THAT POINT. ON THE AUDITORIUM SIDE, THE STAGE CERTAINLY NEEDS WORK. THE SEATING AISLES. I LIKE CUTTING THEM UP AND DOING AISLES. MY PERSONAL PREFERENCES GOING ALL THE WAY UP. THERE ARE A NUMBER OF ADVANTAGES FROM THERE. I UNDERSTAND THERE IS CONSIDERATION AS FAR AS CAPACITY . I THINK THERE IS A LOT OF POTENTIAL FOR VALUE ENGINEERING.
SEEMS TO BE THE WORD OF THE DAY WHERE THE PHRASE OF THE DAY. I THINK THE BUDGET HAS A MILLION DOLLARS FROM THE GREENROOM . AND SILENT, WE CAN DO FIVE HOUSES FOR THAT AMOUNT. AND I THINK,
[04:00:06]
THE BATHROOMS ARE THE OTHER THING I HEAR A LOT ABOUT . THEY NEED TO BE UPDATED. THE CONFERENCE ROOMS IN THE MEETING ROOMS AND THE FOYER . SPENDING UNDER THIS PROPOSED PLAN, A LOT OF MONEY . 8 MILLION ON THE EXHIBIT. A LITTLE OVER 8 MILLION ON THE EXHIBIT HALL FOYER ALONE. THE MEETING ROOMS AND THE CONFERENCE CENTER I THINK ARE 13 MILLION . AND THEN ANOTHER ALMOST FIVE, FOR THE MEETING ROOMS. THOSE WOULD BE THINGS, THAT I DON'T KNOW I HAVE ENOUGH INFORMATION TO GO, THAT IS WORTH SPENDING 20, 25 MILLION AND TOTAL ON THOSE THAT ARE NOT EXHIBIT HALL , EXHIBIT HALL AND AUDITORIUM. I FEEL LIKE THOSE OF THE FUNCTIONS OF WHAT WE HAVE A CONVENTION CENTER. THE MEETING ROOMS AND CONFERENCE ROOMS ARE GOOD AND NICE. BUT ARETHEY FILLED BY OTHER -- THE DOWNTOWN HOTEL OR HERITAGE SQUARE OR OTHER PRIVATE ENTITIES OUT THERE . THAT WOULD BE MY CONCERN. I DON'T KNOW IF I HAVE ENOUGH INFORMATION ON YES, WE NEED TO PUT IN 20, 25 MILLION ON THAT . THAT MIGHT JUST BE AN INFORMATIONAL THING I NEED TO KNOW MORE ABOUT. I DO THINK WE NEED TO RENOVATE. WE NEED TO UPDATE THE AUDITORIUM. SOME IMPROVEMENTS IN THE FOYER. I DON'T KNOW IF I'M ON BOARD WITH THE EXTENT OF THE FOYER IMPROVEMENTS. IN THE BATHROOMS, OBVIOUSLY YES. AND THE EXTERIOR . I'M UP FOR SPRUCING THAT UP WHETHER IT IS SOME KIND OF -- YOU KNOW, WHATEVER THAT ENDS UP BEING. THAT WOULD BE WHERE MY PREFERENCES ARE. SOME OF THESE THINGS, I THINK I WOULD JUST NEED TO KNOW MORE ABOUT.>> I THINK MEETING ROOMS AND BOARD ROOMS , THE HOTEL REALLY ONLY HAS THAT 4500 SQUARE-FOOT MEETING ROOM . THE IMPORTANT THING ABOUT MEETING ROOMS AND BOARDROOMS IS THEY ARE BREAKOUT SPACE . YES, YOU ARE RIGHT. THERE IS A PLENARY SESSION GOING ON AT THE MAIN CONFERENCE SPACE. BUT YOU NEED THOSE BREAKOUT SESSIONS FOR ALL THE BREAKOUT SESSIONS THAT HAVE BEEN IN A CONVENTION. YOU ABSOLUTELY NEED THOSE. WE CAN LOOK AT WHAT WE ARE SPENDING PER SQUARE FOOT AND ALL OF THAT AND MAKE SURE YOU GUYS ARE GETTING ALL THE INFORMATION YOU NEED TO MAKE THOSE DECISIONS. THOSE MEETING ROOMS ARE IMPORTANT. ANDTHEY ARE TOUGH RIGHT NOW. YOU GO IN AND IT'S PLASTIC AND LATE IN SEALING. THAT IS TYPICALLY NOT A GOOD LOOK FOR CONVENTION SPACE.
SAME WITH THE FOYER SPACE. I THINK THE FOYER IS A SPECTACULAR SPACE . GLASS ON BOTH SIDES. IT IS MY FAVORITE SPACE IN THE CITY. IT HAS A GREAT FLOOR. BUT THE WALLS ARE NOT ABLE TO BE RESTORED AND HAVING THE LAY IN CEILING, INCHES HAS TO GET CHANGED OUT. AGAIN, CAN WE SHOW ? ALL OF THIS IS AN AND NARRATIVE PROCESS. YOU DECIDE WHAT DO YOU WANT TO DO. WE DIG IN AND WE DO A LITTLE MORE DETAIL. WE ARE VERY TERMS. WE SHOW YOU WHAT THINGS ARE AND SHOW YOU WHAT IS CHANGING AND WHAT THEY COST AND THERE IS A CONSTANT BACK AND FORTH .
>> THE EXERCISE, THE TASKS GIVEN , GIVE US WHAT --A COMPLEMENTARY FACILITY AT THE HOTEL SO WHAT ARE WE LOOKING AT? THERE ARE THINGS THAT, IF YOU TOUCH SOMETHING, WE HAVE TO TOUCH THE REST. THE FOYER FOR EXAMPLE, WE CAN'T GET THOSE DIALS ANYMORE. THEY DON'T MAKE THEM. THEY ARE ALL ASBESTOS. IF ONE FALLS OUT, THEY ARE INTERLOCKING AND WE WILL HAVE A DOZEN OF THEM DROP. A COUPLE YEARS BACK, WE HAD A HOLE IN THE AUDITORIUM BECAUSE WE LOST ONE TILE AND IT TOOK US FOREVER TO FIND A WAY TO GET IT UP THERE. AND I THINK IT IS BEING HELD UP THERE WITH SOME DUCT TAPE AND BUBBLE GUM.
>> THERE ARE THINGS LIKE THAT WITH SOME OF THE COSTS ASSOCIATED WITH IT. EVERYTHING IN THEIR HAS ASBESTOS. YOU HAVE TO ABATE THAT OR COVER THE. IT IS NOT THE HUGE DRIVER HERE .
>> OF COURSE I UNDERSTAND THE PRIORITIES . THESEWOULD NOT BE MY PRIORITIES. MY PRIORITY WOULD BE WITHOUT THE AUDITORIUM. ONE THING I AGREE ON IS, I LIKE THE EXTRA WHOLE SPACE, AND FURTHER, LIKE THE WAY THAT IS CUT OFF. I UNDERSTAND IT TAKES A FEW SEATS AWAY. LIKE YOU SAID, THE END SEATS. I KNOW THAT THE BACKSTAGE DRESSING ROOMS ARE HORRIBLE. I KNOW WHEN YOU DO IT IN PHASES, IT IS HARD. BUT I THINK, OKAY, IF WE'RE LOOKING AT SOMETHING,
[04:05:02]
LET'S LOOK AT THE AUDITORIUM AND THOSE THINGS ADJACENT WITH THIS. DRESSING ROOMS. MY PRIORITY WOULD FIRST BE THE AUDITORIUM. I UNDERSTAND THIS IS A WISH LIST. PROBABLY A LOT MORE DISCUSSION DOWN THE ROAD. I'M NOT IN TOTAL AGREEMENT WITHTHIS ORDER. >> JUST STARTING THE
>> THE AUDITORIUM IS IMPORTANT BUT I THINK WE HAVE TO TACKLE THE RESTROOMS. WE HAVE BEEN TALKING ABOUT CONVENTION CENTER RESTROOMS FOR A LONG TIME. WE HAVE BEEN TALKING ABOUT FIXING THEM AND CHANGING THEM UP AND WE JUST NEVER HAVE . I THINK THAT IS SOMETHING IMPORTANT. AND I'M ASSUMING THAT IF WE LOOK AT NUMBER SIX LOBBY RESTROOMS, NUMBER FOUR, SANITARY UNDERGROUND REPLACEMENT . UNFORTUNATELY,THAT IS A PRETTY BIG TICKET AMOUNT . AND PEOPLE WILL NEVER KNOW IF WE FIX IT BUT THEY WILL SURE NO IF WE DON'T AND THEY WILL REALLY KNOW IF WE DON'T GET THAT FIXED. AND I THINK THAT IS IMPORTANT. BUT THE RESTROOMS HAVE BEEN A CONSTANT ISSUE THAT WE HAVE DEALT WITH
FOR MANY YEARS. >> THAT NUMBER IS A BIG NUMBER .
BUT I THOUGHT IT WAS DOUBLE THAT.
>> I ESTIMATED INITIALLY BEFORE WE BROUGHT IN THE SCOPING, THAT WILL BE A $5 MILLION PROJECT AND THEY CAME BACK AND I'LL BE ENOUGH, WE WERE IN BETTER SHAPE THEN WE THOUGHT. THAT WAS GOOD
NEWS TO US. >> THEY TELL US THE DEPTHS OF THE WALL AND THE THICKNESS OF THE CAST-IRON. THEY DID A VERY THOROUGH JOB USING TECHNOLOGY. IT IS NOT JUST GOT IT ALL. VERY
STRATEGIC. >> AND THERE ARE TECHNOLOGIES FOR CHANGING OUT SEWER LINES. YOU DON'T HAVE TO DIG EVERYTHING UP AND DIG UP TRENCHES AND PIPE. A LOT OF IT IS LEFT IN PLACE, DROOLED OR SLEEVED.
>> THE RANKING WE ARE LOOKING AT HERE , COULD YOU TELL ME AGAIN, AND I'M SORRY IF YOU SAID IT ALREADY ONCE. HOW WAS THAT LIST
DERIVED ? >> A COUPLE THINGS. ONE, REVENUE GENERATOR. SO ASM AND GARFIELD. SO GENERATING REVENUE FOR THE FACILITY. SO IT'S A BUSINESS SO A GOOD QUESTION TO ASK. THIS IS REALLY JUST KIND OF PUT TOGETHER AS, YOU HAVE A LIST. THERE IS THAT. YOU ARE THINKING ABOUT THINGS THE FACILITY DOES NOT DO WELL NOW , COULD THAN IMPROVEMENT WORK LIKE A KITCHEN? STEVE IS RIGHT. THE KITCHENS ARE BASICALLY HALLWAYS WITH WARMERS AND FRYERS. NOT A KITCHEN. EVEN THE KITCHEN IN THE EXHIBIT HALL, HE COULDN'T COOK THINGS IN. YOU CAN WARM THEM UP SOMETIMES BUT NOT EVERY TIME. WHEN THE CATERERS COME IN, WE HAVE THE CONSTANT CONCERN THAT THE KITCHENS NEED TO BE UPDATED.
THOSE THINGS ARE IMPORTANT. I DON'T WANT COUNSEL TO LOCK IN ON THIS NUMBER. LIKE THIS HAS TO BE NUMBER ONE. THIS IS NOT WHAT IT IS. IT IS JUST A LIST. THEY PRIORITIZE IT BASED ON CERTAIN THINGS. YOU COULD FORGET EVERYTHING, ONE THROUGH 14, AND JUST CHOOSE 15. AND IT WOULD NOT BE A BAD USE OF PUBLIC FUNDS. AS THE CITY MANAGER, HAVE TO TELL YOU THAT YOU NEED TO GET THE SANITARY UNDERGROUND FIXED OR OTHERWISE YOUR GETTING YOUR HAIR DONE AND LIPSTICK DONE BUT YOU HAVE TO HAVE AN ARTERY REPLACEMENT. WE HAVE TO GET THE ARTERIES DONE EARLS NONE OF THIS
MATTERS. >> I WASN'T SURE WHERE YOU WERE
>> I LOVE THE DESIGN. I APPRECIATE THE CREATIVITY AND THE ATTENTION TO DETAIL AND THE ACCESSING MULTIPLE EXPERTISE SOURCES FROM A LOT OF DIFFERENT PLACES THAT OF THE BEST AT WHAT THEY DO. THAT IS OBVIOUS AND THE RESULT OF THIS. I THINK THERE IS A WHOLE PRODUCT THAT IS REALLY IMPRESSIVE. AND I WISH WE JUST HAD $72 MILLION JUST LAYING IN THE BACK ROOM AND WE COULD JUST SHOVEL IT IN HERE BECAUSE I THINK IT IS A VERY DESIRABLE END STATE. I WOULD LOVE TO DO IT ALL. AND THEN, WE HAVE TO BE THE ONES THAT SET PRIORITIES AND CHOOSE THIS. THIS IS ADJACENT TO SOME OF OUR PRIORITIES. DOWNTOWN DEVELOPMENT. NOT DIRECTLY WITH THAT IS BUT IT WILL AFFECT IT. DEFERRED MAINTENANCE. IF THIS IS OF CITY FACILITY AND IT HAS GOTTEN A LITTLE LOVE THROUGH BOND ISSUES AND MAINTENANCE, BUT IT PROBABLY IS KIND OF LIKE THE
[04:10:01]
AIRPORT. YOU HAVE TO REPLACE THIS STUFF EVERY 50 YEARS OR SO. >> FROM YOUR ASSESSMENT, GIVEN THAT WE DON'T HAVE UNLIMITED FUNDS ON THIS DEFERRED MAINTENANCE URGENCY PERSPECTIVE, HOW HIGH WOULD YOU PUT THIS COMPARED TO OTHER FACILITIES THAT ARE ALSO NEEDING THIS?
>> I THINK ACROSS THE BOARD, THERE ARE DIFFERENT AUDIENCES THAT THE FACILITIES . IF YOU ARE ASKING ME FROM AN EMPLOYEE AND PERSONAL STANDPOINT, NUMBER ONE NEED FOR THE CITY IS TO COMPLETELY REDESIGN OUR STREET FACILITIES WHERE THE PUBLIC WORKS CHEMISTRY CREWS AND WATER CREWS ARE. THESE BUILDINGS ARE OLDER THAN THESE UNFAILING. I WOULD SAY THAT IS ONE AUDIENCE.
>> WHEN YOU LOOK AT THE AUDIENCE OF THE BUILDINGS THE CITIZENS ARE IN. WHERE MEMORIES ARE MADE OR THEY CELEBRATE BIRTHDAYS OR GO TO THE THEATER OR THE SYMPHONY. OR WHAT HAVE YOU, I THINK THIS IS ABSOLUTELY NUMBER ONE ON THE LIST. IF YOU LOOK AT THE IMPORTANCE OF DOWNTOWN AND THE ADJACENCY TO THE HOTEL AND THE MONEY THE CITY HAS EXPENDED, THIS HAS TO BE A NUMBER ONE PRIORITY IN MY MIND AT LEAST. WHEN YOU GET INTO THESE INDIVIDUAL PROJECTS, I THINK YOU CAN SLICE THAT HOWEVER YOU WANT TO. MY PERSONAL PERSPECTIVE AND WHAT WE ARE LOOKING AT NOW AT THE TABLE, I THINK YOU HAVE TO GET THIS. THE ARTERIESAND VEINS AND BOWELS OF THE BUILDING HAS TO BE FIXED OR IT DOESN'T MATTER. WE FIX THOSE. WE START LOOKING AT THE FOYER AND THE AUDITORIUM IN THE GREEN ROOM. AND THE BATHROOMS. WE CAN TACKLE THOSE. THEY ARE VISIBLE ELEMENTS. WE CAN GO AND GROW FROM THERE . I THINK THE KITCHENS WOULD BE NICE TO HAVE BUT WE CURRENTLY DO FOOD SERVICE OUT OF THE CONVENTION CENTER NOW. MAYBE THERE IS A LESSER PACKAGE WE CAN LOOK AT AND SAY, WE DON'T WANT TO SPEND 2.5 MILLION OR 2 MILLION . THAT IS PART OF THE DIRECTION THAT WOULD BE HELPFUL FROM COUNSEL TO SAY, HERE ARE THE THINGS THAT WE THINK ARE NUMBER ONE . AND STEVEN AND I WILL GO BACK TO THE TEAM AND SAY, BASED ON COUNCIL INPUT, WE WOULD LIKE 12, SEVEN, FOUR AND 18. WE WILL PUT THAT TOGETHER AND PACKAGE IT AND SAY, HERE IS THE TIMELINE TO GET THAT DONE AND HERE'S THE DOLLAR AMOUNT ASSOCIATED WITH THAT. IS IT A BOND ISSUANCE? WILL IT BE ON MAY OR NOVEMBER BALLOT. TO WAIT UNTIL THE NEXT CALENDAR YEAR TO DO IT WAS THAT IS WHERE THE DIRECTION COULD BE HELPFUL AND MOVE THE CONVERSATION
FORWARD. >> I WOULD LIKE TO SEE THE RANKING CODE. SAFETYISSUE FIRST , FOLLOWED BY REVENUE GENERATION, FOLLOWED BY CONVENIENCE . THAT IS HOW I
WOULD BREAK IT OUT. >> YOU CAN DO ALL VIA CODE AND
SAFETY. >> THERE ARE SEVEN THINGS THAT WILL GENERATE REVENUE ORDERED AND THE POTENTIAL OF A GENERATION AND THEN CONVENIENCE AND SIZE.
>> WE COULD DO THAT . >> AND COLLEGE THE STEEL ON THE
ROOF AND PUT BLAZE REAGAN ON IT. >> THIS IS A GOOD START. I KNOW WE ARE NOT TAKING ACTION TODAY. I THINK THIS IS ALL GOOD INPUT.
WE HAVE A COUNSEL AND NEED TO SEE HOW WE WOULD LIKE TO PRIORITIZE THIS. SAFETY AND THE MECHANICAL PART OF IT DEFINITELY HAS TO BE FIRST. THE PLUMBING HAS TO WORK . YOU FLUSH THE TOILET AND IT DOESN'T GO DOWN, EVERYBODY WILL BE UPSET .
>> IS IT FAIR TO SAY THAT THAT IS AN OUTCOME, IF WE CAME BACK WITH THE TRIAGE OF REVENUE ISSUES OR AMENITY ISSUES AND BROUGHT YOU BACK MAYBE TWO OR THREE DIFFERENT OPTIONS TO AFFECT CHANGE IN THAT DIRECTION, THAT WOULD BE SOMETHING YOU
WOULD WANT TO SEE . >> WHILE WE'RE ON THIS, FUNDING WISE, WHATEVER THE 45 THINGS ARE THAT WE SAY WE PICKED. WE TOTAL 15 OR 20 MILLION, WHATEVER THE END OF BEING , WHAT KIND OF FUNDING MECHANISMS ARE WE LOOKING AT FOR
THIS? >> GREAT QUESTION. TWO PRIMARY OPPORTUNITIES. SO CREATE ANOTHER VENUE DISTRICT. CITIES ARE ALLOWED TO HAVE TWO AT THE JOINT COUNTY AND THEN CITIES CAN CREATE A VENUE DISTRICT ON THEIR OWN. SO THEORETICALLY, WE CAN HAVE ANOTHER VENUE DISTRICT. YOU COULD DO 10-$11 MILLION WORTH OF PROJECT FUNDS THROUGH THAT. SO IT MIGHT BE CLOSER TO EIGHT.
>> THAT IS ONE AVENUE. THAT WOULD BE A 2% ADDITIONAL HOT
[04:15:01]
TAX. SO IT'S THE PEOPLE PASSING THROUGH USING THE FACILITY. AND THE OTHER THING WOULD BE , AS THE VOTERS AND THEN THE DELTA OFWHAT OF THE TOTAL PROJECT WAS. >> AND THE VENUE WOULD GO TO THE
VOTERS . >> AND WITH REGARD TO THE SANITARY UNDER PLACEMENT IN THE BATHROOMS, THAT IS WHEN I HEAR ABOUT A LOT. THE BATHROOMS. FOR THE AUDITORIUM PERSPECTIVE, MAY NOT BE REALLY EXCITED ABOUT THIS. AND I WOULD BE SO MUCH NICER AND MORE SEATS TO SELL. AND THAT REALLY APPEALED TO ME.
>> YOU CAN LOOK AT IT AND SAY, WE ARE EXPECTING THIS WILL PRODUCE THIS KIND OF REVENUE AND THIS WILL PRODUCE THIS REVENUE AND YOU CAN DECIDE WHAT YOU THINK IS BEST .
>> THAT IS THE ONE THAT REALLY APPEALED TO ME. THAT IS OUT THERE FOR FUTURE CONVERSATION . AS FEEDBACK.
>> THIS IS WHY WE WOULD RATHER NOT AND GO WITH ANOTHER ONE. OR THIS IS HOW WE CAN MAKE THAT WORK .
>> THIS IS NOT A FRIVOLOUS UPGRADE. THIS IS THE LIVING ROOM OF ABILENE. THERE IS THE INTERACTION WITH THE CITY FACILITY. BUT OVERDUE FOR A FACELIFT.
>> I WOULD SAY THE LEVEL OF FINISH WE ARE SHOWING HERE IS APPROPRIATE FOR A CITY LIKE ABILENE. IT IS NOT OVERSHOOTING IT. WE ARE NOT TRYING TO MAKE IT SOMETHING IT IS NOT. I THINK IT IS ABSOLUTELY APPROPRIATE. YOU HAVE TO FIGURE OUT WHAT YOU CAN
DO DO. WHAT IS YOUR PRIORITY? >> AND UNFORTUNATELY, AS HAS BEEN THE CASE FOR MANY THINGS HERE , STREETS AND THE AIRPORT AND THIS HAS JUST BEEN SOMETHING KICKED DOWN THE ROAD FOR QUITE A WHILE . AND I DON'T KNOW THAT WE CAN DO THE 72 BUT WE CAN DO SOMETHING BECAUSE IT IS THAT INITIAL EXPENSE. BUT THEN WHEN IT STARTS BRINGING THINGS IN, ALL THE SUDDEN , THAT EXPENSE IS WORTH IT BECAUSE IT DOES ALLOW US TO -- YOU KNOW, THE GREEN ROOM OR THE CHANGING ROOMS. IF WE HAVE ARTISTS LEAVING HERE AND SAYING, I WILL NEVER GO BACK THERE AGAIN BECAUSE IT LOOKED LIKE JUNK, GUESS WHAT. THAT CAN COST US DOWN THE ROAD.
>> I THINK YOU COULD PICK THE PIECES YOU WANT TO DO NOW .
WHEN WE ARE HALFWAY DONE IN 18 YEARS, YOU CAN SAY, TO BE HAVE THE STOMACH TO DO MORE TWO YEARS DOWN THE ROAD AND THAT IS THE KIND OF THING YOU COULD OR CONSTANTLY BE THINKING ABOUT DOING THINGS TO IT. PLAYED ON THIS WAKE UP AGAIN IN 30 YEARS AND SAY, WE HAVE TO HIT THE BATHROOMS AGAIN .
>> A FINAL COMMENT. ON THE CODE STUFF. THE TRIAGE EXERCISE. THIS INCLUDES THE ROOT -- ACCESSIBILITY STANDARDS IN MY MIND AND PERFECT. THANK YOU FOR THE DISCUSSIONS. VERY HELPFUL.
>> DID WE GET YOU OUT ON TIME? >> YES.
>> ALL 300 SLIDES >>> THE NEXT DISCUSSION GOES BACK TO THE DEFERRED MAINTENANCE IN A WAY TO CORRECT THAT. WE HAVE PARTNERED WITH SCHNEIDER ELECTRIC FOR A LONG TIME EVEN PRIOR TO MY ARRIVAL. WE HAD DONE TWO OR THREE OR FOUR DIFFERENT PHASES . TWO, FOR SURE. WHAT WE ARE LOOKING AT NOW IS PHASE 5 AND 6 TO CONTINUE SOME OF THE FACILITY IMPROVEMENTS AND UPGRADES THAT ARE NECESSARY. JUST TO MAINTAIN THOSE WE ARE DOING. THESE ARE THINGS THAT WE HAVE TO DO TO OCCUPY THE BUILDINGS WE ARE IN RIGHT NOW. YOU WILL SEE THE NUMBERS AND SEE WHAT WE ARE GETTING INTO. SO WE WILL GO AHEAD AND JUMP IN. BACK IN 2008, WE STARTED THIS PHASE 1 PROJECT. LOOKING AT $9 MILLION OF ENHANCEMENTS. OVER THE COURSE OF THE YEARS, WE HAVE DONE UPGRADED BUILDINGS AND FACILITIES, 37 DIFFERENT PROJECTS. WE HAVE SEEN AN ACTUAL 27.5% REDUCTION IN THE UTILITY SPAN TIED TO THESE PROJECTS. WE HAVE HAD A REDUCTION IN RATES
[04:20:08]
FOR BUYING IN THE MARKET AT THE RIGHT TIME. THIS IS 27.5% YET LESS UTILITY DUE TO THE IMPROVEMENTS MADE. IT IS IMPORTANT BECAUSE THE PRODUCT WE ARE DOING IS UNDER THE STATE STATUTE . YOU ARE ALLOWED TO MAKE FACILITY UPGRADES AND IMPROVEMENTS AND YOU CAN PAY FOR THAT WITH THE ENERGY YOU ARE SAVING . THAT CAN PAY FOR THE DEBT SERVICE. AND THOSE SAVINGS THEN ARE GUARANTEED BY THE COMPANY DOING THE ENERGY SERVICE. AND IF THEY DON'T MAKE IT , THEY ARE REQUIRED BY LAW TO PAY YOU. TO PAY THE DIFFERENCE. IT IS ONE OF THE FEW THINGS IN LIFE WHERE YOU HAVE A GUARANTEE THAT YOU WILL GET GET. THEY ARE REQUIRED TO HIT TARGETS . THE NEXT THING SHOWS THAT. THE DOTTED LINE WAS THE GUARANTEED LEVEL THAT IF THEY DIDN'T MEET THAT PERFORMANCE, THEY WOULD HAVE TO WRITE A CHECK. THE ACTUAL BLUE LINE IS THE ACTUAL LEVEL OF ENERGY SAVINGS THAT THEY HAVE ACCOMPLISHED OVER THE DIFFERENT PHASES WE HAVE DONE .THE TEAM WORKS WELL WITH SCHNEIDER. WE WENT OUT TO THE NEW RFP BECAUSE IT HAD BEEN A WHILE.
>> . WHAT ARE WE LOOKING AT DOING? WE ARE LOOKING AT DOING A NUMBER OF HVAC REPLACEMENTS AND UPGRADES. THESE HVAC SYSTEMS ACROSS THE CITY AND ORGANIZATION ARE USING -- YOU CAN'T GET IT ANYMORE. AND WE ARE NOT GOING TO BE ABLE TO REPLACE THESE UNITS. WEHAVE TO REPLACE THESE ANYWAY. WE HAVE IDENTIFIED THESE DIFFERENT CHILLERS AND THESE DIFFERENT REPLACEMENTS AND BOILER REPLACEMENTS AND THINGS THAT HAVE TO GET DONE FOR THE LIFE CYCLE AND MAINTENANCE OF THE FACILITY. THEY HAVE BEEN WELL USED AND CARED FOR. THEY ARE JUST END OF LIFE.
>> THE BUILDING AUTOMATION SYSTEM, WE HAVE A BAS THAT RUNS THE HEATING AND COOLING. THE LITTLE THERMOMETERS ON THE WALL . YOU PUSH THE BUTTON AND YOU CAN RAISE IT UP A DEGREE OR TWO.
YOU DON'T GET TO LOWER IT TO 65 DEGREES IN THE MIDDLE OF SUMMER.
THERE IS A COMFORT RANGE. IT IS ALL CONTROLLED BY A COMPUTER SYSTEM . THE AIR HANDLERS IN THE DUCTS THAT CHANNEL AARON COMPARTMENT NOISE IT AND MOVE IN THIS DIRECTION IN THAT DIRECTION, IS ALL CONTROLLED BY THE BAS, BUILDING AUTOMATION SYSTEM . IT HAS BEEN HERE SINCE 2008. AND IT IS TIME TO REPLACE IT . THE EQUIPMENT IS FAILING. PARTS ARE NOT AVAILABLE BECAUSE THEY DON'T MAKE THEM ANYMORE. THEY HAVE GONE TO DIFFERENT MODELS OR MODELS AFTER THAT. SO IT IS TIME TO UPGRADE THE SYSTEMS. ELECTRICAL UPGRADES. MANY OF THE OLD BUILDINGS HAVE ELECTRICAL PANELS ELECTRIC UPGRADES THAT ARE FEDERAL PACIFIC PANELS. FEDERAL PACIFIC WAS A VERY POPULAR BRAND. ANYONE SAYS IF YOU HAVE THE FEDERAL PACIFIC PANEL, YOU WOULD WANT TO RIP IT OFF THE WALL. THEY WERE SUED AND LOST AND PAID A LOT OF MONEY. THAT IS WHAT YOU DON'T HEAR ABOUT THEM ANYMORE. THE BREAKER SYSTEMS FAILED TO DO WHAT THEY WERE SUPPOSED TO DO AND THAT RESULTED IN A NUMBER OF FIRES. WE HAVE THE SYSTEMS .
ALSO, THESE HAVE A LIFESPAN AS WELL. THEY ARE AT THE END OF THE LIFESPAN. WE ARE LOOKING AT REPLACING SOME OF THESE SYSTEMS AS WELL. ELEVATOR REFURBISHMENTS. WE HAVE ELEVATORS IN DIFFERENT AREAS OF THE CITY . THE CONVENTION CENTER, ROSE PARK. NORTHEAST WIRE TREATMENT PLANT. THESE BUILDINGS NEED TO BE, THESE SYSTEMS NEED TO BECOME FULLY MODERNIZED. WE HAVE ELECTRICAL AND MECHANICAL SYSTEMS REPORTS ARE MAINTAINED. YOU WANT TO COME IN AND MODIFY THESE ELEVATORS COMPLETELY . WHAT YOU DON'T SEE ON HERE, BECAUSE YOU ARE NOT EXPECTING TO BE IN THE BUILDING, IS THE ELEVATOR AT THE MAIN LIBRARY BRANCH. IT IS NOT FUNCTIONING. IT WOULD BE ON THE LIST. SO THAT IS ONE MAINTENANCE ITEM WE DON'T HAVE TO DO BECAUSE WE HAVE BENEFACTORS THAT ARE CUTTING A CHECK FOR A BRAND-NEW LIBRARY WHICH IS NICE. BUILDING ENVELOPE IMPROVEMENTS.
WE WOULD LIKE TO CONTINUE TO MAKE STRATEGIC IMPROVEMENTS TO BUILDING ENVELOPES FOR ENERGY WEATHERIZATION AND SOLVING PROBLEMS WHEN YOU HAVE PENETRATION OF WATER AND HEATED AND COLD AIR. MINOR DEALS BUT IMPORTANT. SO THE PHASE 5 SCOPE, THE WORK OF THE BUILDING IS THE ENERGY EFFICIENCY AND THE MECHANICAL UPGRADES AND THE BAS AND THE ELEVATOR REFURBISHMENTS.
LOOKING AT ABOUT 11-$13 MILLION. THE ENERGY SAVINGS ASSOCIATED WILL NOT PAY FOR THE FULL PRICE. AND SO, THERE IS JUST NOT ENOUGH
[04:25:05]
ENERGY IMPROVEMENT . TO BE ABLE TO COVER THE FULL COST OF THE SERVICE. WE SAW THAT IN PHASE 4 . SAME KIND OF CONCEPT. WE WILL PICK UP SOME BUT NOT ENOUGH TO COVER THE COST. SO IF WE DECIDED TO DO THIS, IT WOULD BE A DEBT ISSUANCE. WE HAVE HISTORICALLY DONE CERTIFICATES OF OBLIGATION . AND THEY WOULD BE COUPLED. WE HAVE SOME GUARANTEE IN THE SERVICE BUT NOT ENOUGH TO COVER100%. >> ROBERT, FROM THE 13 MILLION, WHAT WOULD BE THE ROUGH ESTIMATE OF HOW MUCH WE WOULD SAVE ?
>> THAT IS THE NEXT STEP . >> KIND OF THE NEXT STEP WE WOULD LIKE TO DO WITH THIS. DETERMINING HOW MUCH MONEY WE CAN DO FOR HER PROGRAM. WE WOULD HAVE TO STILL ISSUE THE FULL AMOUNT OF DEBT . BUT IT WON'T ALL BE PAID FOR WITHIN CURRENT REVENUE DOLLARS. WE WOULD HAVE TO HAVE NEW REVENUE TO OFFSET THE DEBT . DOES THAT HELP TO ANSWER YOUR QUESTION?
>> YES. >> SIX IS SOMETHING WE ADDED BECAUSE WE ALL REMEMBER, WITH SNOW MCGETTIGAN , WE TALKED ABOUT, WHAT CAN WE DO TO CREATE SUSTAINABILITY IN THE WATER PRODUCTION PLANTS. THIS IS THE RESULT OF THAT WORK. WHEN WE DID THE ANALYSIS , POST THE WINTER STORM YEAR EVENT, WE LOOKED AT THE 21 MILLION-DOLLAR MICROGRID . MAYBE THAT IS THE SOLUTION YOU WANT TO GO TO. THIS IS A LESS EXPENSIVE OPPORTUNITY. THESE ARE DIESEL GENERATORS. THEY HAVE A 72 HOUR RESERVOIR FEET. WEFEEL CONFIDENT THAT IN ANY EVENT, WE CAN GET THAT FILLED IN A 72 HOUR BASIS AND BE ABLE TO MEET OUR NEEDS. MOST OF THE TIME YOU HAVE A 28, 48 HOUR RESERVOIR. I THINK THE CRITICAL NATURE, THE 72 HOUR IS SUFFICIENT TO MEET OUR NEEDS. THE HIGH SERVICE PUMPS AT THE NORTHEAST WATER TREATMENT PLANT . AND THE SALT WATER TREATMENT PLANT. THIS ABOUT A 13-50 MILLION-DOLLAR PRIORITY, OR PROJECT. BY DOING THE GENERATORS, WE ARE ABLE TO SAVE SUBSTANTIALLY ON THE MICROGRID. THE MICROGRID IS A MORE RELEVANT -- ELEGANT SOLUTION. THIS IS THE STATE REQUIREMENTS AND IT PROVIDES A BACKUP THAT IS ESSENTIAL AND IS REQUIRED AND THAT WE NEED AND YOU RUN THE RISK WHEN YOU NEED IT, THAT THE GENERATORS WILL START AND THAT IS WHY YOU HAVE TO MAINTAIN THEM OVER TIME. HOUSTON HAD GENERATOR CONTRACTS FOR MAINTENANCE AND STILL DIDN'T HAVE GENERATORS TO START. THERE IS NO FOOLPROOF SYSTEM . WE CAN GET THEM TO START. IT IS A MECHANICAL DEVICE. IT HAS TO BE MAINTAINED AND WE WILL DO THAT. I THINK THE DOLLAR FOR MONEY, THE VALUE, YOU CAN SAVE A SUBSTANTIAL AMOUNT OF MONEY. THIS IS TODAY DOLLARS. IF YOU DID A MICROGRID SYSTEM AND TODAY'S DOLLARS, YOU ARE PROBABLY SAVING 10-$15 MILLION IN COST BY DOING THIS VERSUS THE
MICROGRID . >> DO WE ALREADY HAVE BACKUPS AT
THE PLANT, AT THE PUMP STATION ? >> I WOULD NEED TO PHONE A
FRIEND. MATTHEW ? >> WE DO NOT.
>> I DID NOT THINK WE DID. IS THAT USEFUL TO HAVE FILTRATION SYSTEM BACK UP IF YOU DON'T HAVE WATER COMING TO THE PLANT?
>> YOU WANT TO TALK ABOUT WHY WE ARE CHOOSING TO DO THESE AND
THESE PARTICULAR SOLUTIONS? >> SURE. THAT WAS GOING TO BE MY
QUESTION. >> ASSISTANT DIRECTOR WATER UTILITIES. THESE REPRESENT SOME OF THE MORE CRITICAL PORTION OF THE FACILITIES. SO IN THE WINTER STORM, WE HAD A LOT OF CONVERSATIONS AND NOT LONG AFTER THAT, THE STATE CAME OUT AND SAID, EVERYBODY HAS TO PUT TOGETHER THE EMERGENCY PREPAREDNESS PLAN. WE WENT THROUGH AND DID THE EXERCISE TO SAY, IF WE COULD HAVE A GUARANTEED WATER SERVICE DURING EVENTS, WHERE DO WE HAVE TO HAVE BACKUP POWER? IT IS A FULL LIST . THETIMING OF WHICH WAS TIED TO THE MASTER PLAN THAT WE RECENTLY APPROVED FOR PLANT PROJECTS. THESE REPRESENT SOME OF THE MORE CRITICAL ONES. THE REALITY IS THAT WE HAVE ALREADY MADE A COMMITMENT OVER ROUGHLY THE NEXT DECADE. AS WE WILL SEE IN THE LATER PRESENTATION, THE TIMELINES MIGHT SHIFT. AND WE WILL HIT BACKUP POWER AT THE OTHER FACILITIES. YOU ARE RIGHT.
THERE IS STILL SOMETHING LEFT TO BE DONE. BUT WE HAVE ALREADY MADE THAT COMMITMENT TO THE STATE, THROUGH THE EMERGENCY PREPAREDNESS PLAN AND WE WILL HIT ALL OF THESE SITES. THESE ARE JUST SOME OF THE HIGHER PRIORITY AND THESE REPRESENT SOME LOW HANGING FRUIT FOR SCHNEIDER BY THE NATURE OF THE CONTRACT AND HOW THEY LOOK FOR THOSE ENERGY SAVING
OPPORTUNITIES . >> DOES THAT ANSWER YOUR
QUESTION ? >> YOU DON'T SEEM SATISFIED, SIR
[04:30:07]
. >> IT SEEMS LIKE THAT ONE SHOULD
BE PAIRED WITH THE IV BACKUP. >> THAT IS SOLID DIRECTION.
>> IF YOU ARE GOING TO DO THE FILTRATION BUT YOU DON'T HAVE
IV, YOU ARE STILL -- >> WE WILL LOOK AT THAT.
>> IF YOU CAN GET IT OVER THE HILL, IT WILL SLOW DOWN AND YOU WANT THE FILTRATION . YOU COULD ARGUE WE ARE MAKING AN ASSUMPTION THAT YOU WON'T HAVE A WIDESPREAD GRID FAILURE AGAIN AND THAT THE POWER OUTAGE HERE DOES NOT TRANSLATE TO THE OUTAGE
AT THE IV PUMP STATION. >> OKAY. THAT IS REASONABLE .
>> I WOULD SAY THE POINT YOUR MAKING IS A GOOD POINT. I WOULDN'T DISAGREE WITH IT. THE ONE THING ABOUT THE SOUTH SIDE IS THE HAVE THE IV INTAKE PUMP STATION UP TO -- BUT PUMPS UP TO A BOOSTER STATION NEAR BALLENGER. AND THAT PUMPS TO A GREAT BIG 10 MILLION-GALLON GROUND STORAGE TANK. IF YOU SEE A GIANT SILVER TANK . AND THAT GRAVITY FEEDS INTO THE PLANT.
THERE IS STILL LIMITATION . ONE WE KNOW THE EVENTS ARE COMING, WE HAVE THE ABILITY AHEAD OF TIME TO MAKE SURE THE GROUND STORAGE TANK IS FILLED AND WE HAVE THAT 10 MILLION GALLONS HEADSTART IF WE NEEDED TO KEEP RUNNING WITHOUT POWER.
>> SIMILAR ON THE NORTH SIDE WITH AT LEAST BACKUP POWER FROM PUMP. EVEN IF YOU ARE NOT GETTING POWER FROM HUBBARD, WE WOULD LOSE POWER ACROSS A LARGE AREA. WE CAN HANDLE OUR NEEDS THROUGH PHANTOM FOR TWO OR THREE DAYS UNTIL WE GET POWER BACK ?
>> HUBBARD WATER HAS A SIMILAR THING WAS THE HIGH STORAGE TANKS. ABOUT 12 MILLION GALLONS. AND THAT FEEDS TO THE NORTHEAST WATER TREATMENT PLANT .
>> WE DON'T HAVE THE EXTRA STORAGE FROM PHANTOM. SO BACKUP POWER WILL BE NEEDED THERE TO GET WATER TO THE PLANT.
>> BUT WE WOULD HAVE 12 MILLION GALLONS.
>> IN THE LAST STORM, WE ACTUALLY HAD -- WE WERE ABLE TO KEEP FEEDING RAW WATER TO THE WEST CENTRAL TEXAS SYSTEM. SO HUBBARD WATER, WE WERE ABLE TO HAVE ENOUGH PRESSURE AND GET WATER THROUGH. AND IN THE INTERIM PERIOD WHEN WE WERE STILL MOVING PARTIALLY TREATED WATER TO KEEP THE SYSTEM PRESSURIZED, THAT WAS HUBBARD WATER WE WERE PASSING THROUGH.
SO VERY MUCH DEPENDS ON THE NATURE OF THE STORM AND THE OUTAGE. WE HAVE HAD A LOT OF REDUNDANCY OPTIONS BUILT INTO THE SYSTEM. BUT ULTIMATELY, IN THE PLAN, WE HAVE ARTIE MADE THE COMMITMENT THAT THE INTAKE WILL HAVE BACKUP POWER.
>> THANK YOU . >> YOU ARE ALREADY MISSING
THIS, AREN'T YOU, RODNEY? >> DOING A GOOD JOB. YOU ARE DOING A FINE JOB. WAIT -- GREAT QUESTIONS . WHAT OTHER QUESTIONS
TO BE HAVE ? >> WE ARE ASKING, SHOULD WE BRING THIS TO YOU ALL AS PART OF THE BUDGET SOLUTIONS FOR FY2026
. >> THE NEXT STEP WOULD BE TO TAKE THAT TO THE NEXT LEVEL, TO DETERMINE THE FINANCING PACKAGE AND HOW MUCH CAN BE OFFSET BY THE UTILITY SAVINGS. IT WON'T BE A LOT. THIS IS MORE, WE HAVE TO DO THESE THINGS AND WE WOULD LIKE TO DO IT THROUGH THIS PROCESS BECAUSE THAT IS HOW WE TYPICALLY ADDRESS IT. AND LOOKING AT SAVING A LOT OF ENERGY. THEY ARE MOSTLY COST OPPORTUNITIES AND NOT SAVINGS
OPPORTUNITIES. >> A LOT OF THIS, WE HAVE TO DO
TO BE IN COMPLIANCE. >> YOU WILL HAVE TO REPLACE THE HVAC UNITS. THIS IS A WAY THAT IS PROGRAMMATIC AND GETS IT DONE
. >> IS THERE AN OPPORTUNITY TO LOOK AT OTHER PROJECTS? FOR EXAMPLE, IF WE ARE GOING TO REDO THE CONVENTION CENTER AT SOME POINT, MAYBE THAT'S NOT PART OF
THIS . >> WE CAN LOOK AT THOSE THINGS.
THE CHILLER IS GOING BACK . WE HAVE THE CAN VENTURES -- THECONVENTION CENTER BOILERS. YOU WANT TO TALK ABOUT THE BOILERS ON THE CHALLENGES WE HAVE HAD AT THE CONVENTION CENTER AND WHAT WE ARE DOING TO ADDRESS THOSE TODAY?
>> THANK YOU. LESLIE WITH DIRECTOR PARKS AND RECREATION.
THE TWO BUILDINGS YOU HAVE THE MOST ISSUES WITH ARE THE AIRPORT AND THE CONVENTION CENTER. AS YOU KNOW, THE LAST COUPLE MONTHS, WE BROUGHT A COUPLE ITEMS FORWARD TO EXTEND THE LIFE OF THE PUMPS TO THE CHILLERS. THEY STILL NEED TO BE FIXED. THE BOILERS ARE AT END OF LIFE. THOSE ARE ITEMS AT THE CONVENTION CENTER THAT WE NEED TO ADDRESS. EVEN IF, DEPENDING ON WHERE GOES WITH THE CONVENTION CENTER REMODEL AND
[04:35:01]
THINGS LIKE THAT, THESE WILL STILL NEED TO BE REPLACED NOMATTER WHAT HAPPENS WITH THAT . >> I GUESS MY COMMENT WAS MORE ALONG THE LINES OF, DO WE WANT TO MAKE SURE WE ARE COORDINATING THAT? I DON'T WANT TO REPLACE THE BOILERS AND HAVE TO REDO
THAT WORK AS WE REDO THE MODEL ? >> WE WOULDN'T SPEND GOOD MONEY
AFTER THAT. >> I WILL REITERATE THAT. WE ARE IN CLOSE CONTACT WITH THE ARCHITECTS AND ENGINEERS AS WELL AS THE DIRECTORS AND WE ARE ALL A TEAM AND COORDINATION HAVING THESE CONVERSATIONS . WE WON'T PUT IT IN SNYDER IF IT WILL BE AN ERRORS AND THEY WON'T PUT IT IN IF THEY THINK IT IS SNYDER.
IT IS HOW CLOSE TO END OF LIFE IT IS .
>> AND THE AIRPORT AS WELL? >> THE AIRPORT AS WELL.
>> THANK YOU, LESLIE. >> FROM A DIRECTION STANDPOINT , IS THIS SOMETHING COUNSEL WANTS TO MOVE FORWARD WITH ? YOU WANT US TO COME BACK WITH A LOWER DOLLAR AMOUNT ?
>> THAT WOULD BE GREAT. >> LET YOU KNOW WHAT WE GET FOR
THAT. AND DO ALL THE WORK. >> .
>> WOULD IT COME BACK AS ONE, PHASE 5 AND 6 AND 1?
>> . THEY BROKE IT UP ON FIVE AND SIX.
TOO. >> SO ABOUT A $28 MILLION
>> THIS IS CERTAINLY IN LINE WITH THE PRIORITIES WE'VE SET.
CERTAINLY DEFERRED MAINTENANCE ALTHOUGH A LOT OF IT IS, SO APPROPRIATE.
THIS ALSO GOES TO OKAY THIS SHIFTS TO MODERN IMPROVEMENTS OR SOMETHING AS A FUNDING SOURCE THAT PART OF THIS AS YOU'RE DEVELOPING IT, WE MIGHT BE LOOK AT CURRENT YEAR DOLLARS AS WE'RE DOING THOSE TRANSFERS WITH THE OPPORTUNITY THAT IF SALES TAX COMES IN STRONGER, THAT WE MIGHT SHIFT THAT FROM 3 AND THIRD BACK TO 5%.
>> IF WE CAN REDUCE OUR RELIANCE ON MAINTENANCE AND FOCUS OUR DEBT SERVICE ON DURABLE CAPITAL PROJECTS THAT HAVE, YOU KNOW, 30, 40, 50- YEAR LIFE- SPANS I THINK THAT'S A BETTER VALUE.
NOT THAT I DON'T LOVE ELEVATORS
AND BOILERS. >> YEAH, I TOTALLY HEAR YOU.
YOU'RE 100% CORRECT. I THINK PHASE 6 THIS CONCEPT IS 100% GOOD USE OF DEBT BECAUSE GENERATORS WILL BE AROUND A LONG TYPH, BE USED THE LIFE OF THE KET. WE DO TEST THEM BUT THEY LIVE A LONG LIFE. WHEN IT COMES TO SOME OF THESE OTHER THINGS LIKE MECHANICAL SYSTEM UP GRADES, THE BUILDING AUTOMATION SYSTEM UPGRADES, ON THE MECHANICAL STUFF IT'S A BIG NUMBER, WHICH IS THE REASON WE'RE LOOK AT THAT SERVICE.
THEY'LL DEFINITELY BE TOWARDS THE END OF LIFE AT THAT POINT IN TIME. WHEN YOU LOOK AT THE IMPROVEMENT FUND AT THE END OF 2025 WE ANTICIPATE HAVING AROUND 5 MILLION -- OR IS THAT FY 26? SHE DOESN'T LIKE TALKING OFF THE TOP OF HER HEAD EITHER.
THE NUMBER I SAW I THINK WE'RE GOING TO HAVE $5 MILLION THAT THE COUNCIL COULD THEORETICALLY PROGRAM IN THE FY 26 BUDGET.
>> I DON'T THINK EVER BIT BUT YOU COULD STRIP OUT.
>> ELECTRICAL UP GRADES, ELEVATOR REFURBISHMENTS, THAT COULD ALL BE CASH FINANCED. IF WE'RE GOING TO DO THE BOAT RAMPS, THOSE ARE GREAT CASH PROJECTS.
THEY'RE ALSO GOOD DEBT SERVICE PROJECTS BECAUSE THEY LAST THAT LONG, BUT MY THOUGHT PROCESS WAS TO USE THE CASH AND MI PRNGS TO DO THE BOAT RAMP IMPROVEMENTS AND DEBT FINANCE SOME OF THE OTHER STUFF.
WE CAN SHUFFLE THAT DEBT HOWEVER COUNCIL WANTS TO. WHAT I NEED TO KNOW IS DO YOU WANT TO DO THESE, AND WE'LL COME BACK IN THE BUDGET PROCESS WITH A RECOMMENDATION HOW BEST TO AFFORD AND FUND
THESE. >> I THINK WE NEED TO DO THEM.
WE'VE TALKED ABOUT, YOU KNOW, BEING PROACTIVE AND UPGRADING OUR SYSTEM AND MAKING SURE WE'RE AHEAD OF THE GIM BEFORE IT FAILS, AND I THINK THIS IS WHAT WE NEED TO BE DOING.
SO HOWEVER WE END UP FUNDING IT WHEN IT COMES BEFORE US
[04:40:02]
WHETHER IT'S DEBT ISSUANCE OR CASH OR A COMBINATION OF THE TWO, YEAH, I AGREE.IF IT'S NECESSARY LET'S DO IT NOW BEFORE IT COSTS US MORE DOWN THE ROAD.
>> LIKE THE MAYOR SAID, THIS IS SOMETHING WE NEED TO DO.
>> YOU CAN WAIT, BUT I DON'T THINK YOU END UP SAVING MONEY IN THE LONG RUN BY NOT MAINTAINING SOME STUFF JUST TO SAVE SOME MONEY THIS
CORRECT. >> OKAY, IT NEXT BIG TOPIC WE IS OUR AGILITY SYSTEMS. THIS IS Y'ALL, RIGHT? SO WE'VE GOT MATTHEW AND JEREMIAH TO WALK THROUGH THIS. WE AFFECTIONATELY REFER TO THEM AS THE WATER TWINS, AND NO RELATION, BY THE WAY.
BUT THEY'RE GOING TO WALK YOU THROUGH THIS.
THIS IS -- THERE'S A LOT OF INFORMATION HERE, AND THERE'S SOME BIG NUMBERS HERE, SO IF WE NEED TO STOP AND ASK QUESTIONS FOR CLARIFICATION ALONG THE WAY, DON'T FEEL BAD ABOUT DOING THAT. GENTLEMEN.
>> AFTERNOON, MAYOR, COUNCIL. I JUST WANT TO START BY SAYING THAT I APPRECIATE THE VERY EXCELLENT PRESENTATION ON THE CONVENTION CENTER BY THE ARCHITECT, BUT MORE SO I APPRECIATE THAT WHEN HE MADE THAT LITTLE COMMENT ABOUT HOW THE WATER AND SEWER PIPES WERE NOT THE SAME THING, I APPRECIATE THE SKEPTICAL LOOK YOU ALL GAVE HIM BECAUSE AS WE ALL AGREE WATER AND SEWER IS THE MOST EXCITING THING THAT YOU CAN TALK ABOUT. SO HOPEFULLY YOU'RE NOT TOO WORE OUT TALKING ABOUT BIG NEEDS IN THE CITY.
WE'RE DEFINITELY GOING TO BRING SOME BIG NEEDS TODAY.
TO BEGIN THAT CONVERSATION, THOUGH, REALLY WANT TO TAKE A STEP BACK BECAUSE WE'VE ALREADY TALKED ABOUT PFAS REGULATION.
WE'LL GET INTO THAT. WE HAVE A COMBINATION OF THINGS THAT HAVE COME TOGETHER TO MAKE THIS A DIFFICULT CHALLENGE.
WE'RE GOING TO STEP BACK AND LOOK AT THE SYSTEM AS A WHOLE. ANY TIME WE GET A CHANCE TO TALK AT A HIGH LEVEL ABOUT OUR SYSTEM IN THE PUBLIC I THINK IT'S GOOD FOR THE PUBLIC AND COUNCIL TO LOOK AT HOW THE SYSTEM WORKS, WHY WE DO THE THINGS THAT WE DO, THEN WE'LL LOOK AT KIND OF THE LAST FEW YEARS OF HOW THINGS HAVE GONE FINANCIALLY, AND THEN WE CAN JUMP INTO WHAT'S COMING UP IN THE FUTURE. SO I WANT TO START WITH JUST AN OVERVIEW OF THE RAW WATER SIDE. WE GOT TO TOUCH ON THIS A BIT ALREADY WITH GENERATORS, SO LET'S START DOWN THERE. AT THE OHIV RESERVOIR WE HAVE A COUPLE OF PLANTS THAT BRING THE WATER UP. IT CAN ONLY TAKE IVY WATER.
WHAT WE'RE LEADING TO IS GRINDS IS GOING TO GET SHUTDOWN AND WHY.
WHY DID WE MAKE THAT DECISION TO SHUTDOWN? WE DO HAVE THE PK SYSTEM. JEREMIAH IS GOING TO TOUCH ON THAT. THAT IS NOT ACTIVE RIGHT NOW.
IT'S A BUILT IN PLACE. IT HAS THE ABILITY FOR US TO BRING PK WATER OVER TO BRECKINRIDGE, GO TO A ROUGHING FACILITY AND THEN SEND IT DOWN THE WEST CENTRAL SYSTEM TO US TO TREAT THE SAME AS PHANTOM. AND SO YOU SEE THE LINE COMING ACROSS. WE HAVE FORT FORT PHANTOM HILL THERE ON THE NORTH SIDE. NORTH EAST AND GRIMES, THOSE TWO PLANTS CAN TAKE RAW WATER FROM THE NORTH SIDE.
THEY CAN'T GET IVY WATER. THAT'S ROUGHLY HOW WE RUN THINGS ON THE RAW SIDE.
WHEN YOU GET TO THE PLANTS LET'S TALK ABOUT HOW WE PUT WATER INTO THE SYSTEM.
OUR SYSTEM IS IN PRESSURE PLAINS. EVERYTHING THE HIGHEST ELEVATIONS ARE AT THE SOUTH, AND IT WORKS ITS WAY TO THE NORTH, AND SO YOU CAN SEE THE APPROXIMATE LOCATIONS THERE FOR NORTH EAST AND GRIMES, NORTH EAST ON THE NORTH SIDE, GRIMES IN THE CENTER OF TOWN.
THE TRICK OF RUNNING OUR TWO SYSTEMS AND THE CONVERSATION WE'VE HAD PREVIOUSLY YOU SEE OUR AVERAGE DAY RUNS 20 TO 22 MGD. NORTH EAST CAPACITY IS AT 25.
GRIMES IS RATED FOR 25 BUT WON'T DO 25, MAYBE HALF THAT.
AND THEN YOU'VE GOT HARGESHIEMER ON THE SOUTH SIDE.
SO WHEN WE TAKE A PLANT DOWN EITHER ON PURPOSE OR SOMETHING'S BROKE OR OUT OF SERVICE, WE HAVE TO LOOK AT WHAT PLAINS ARE GOING TO BE FED BY WHICH PLANTS, WHAT CAPACITY ARE WE OUT AT THOSE PLANTS,
[04:45:03]
AND IT'S KIND OF WORKED UP TO THIS POINT BECAUSE WE JUST KNOW YOU'VE HEARD US TALK ABOUT THE NORTH EAST BEING THE WORKHORSE, AND THAT'S REALLY JUST BECAUSE THAT 25 MGD WILL COVER YOUR NORMAL DAY. IT'S A PLANT THAT CAN RUN BY ITSELF.THE OTHER TWO PLANTS TYPICALLY CANNOT FEED THE WHOLE SYSTEM ON THEIR OWN, AND SO THEN WE'RE KIND OF RUNNING MULTIPLE SIDES.
SO AS WE WENT TO THE MASTER PLAN, THAT CONVERSATION DROVE A LOT OF WHAT WE TALKED ABOUT FORFOR GOOD TO DO WITH THE PLANTS. REALLY I'M GOING TO GO AHEAD AND JUMP AHEAD AND I'LL COME BACK TO THAT SLIDE. BECAUSE THE NEEDS BEFORE US ON GRIMES ARE DIFFICULT TO WORK AROUND. IT WAS BUILT IN THE 1940 S THROUGH EXTREMELY SKILLED UPERATORS AND FISCAL RESPONSIBILITY OF THE WATER UTILITY.
WE'VE STRETCHED THAT PLANT OUT TO 85 YEARS OF SERVICE.
BUT WE'VE TALKED ABOUT IT HAS ITS ISSUES.
WE'VE GOT LOWER CAPACITIES FOR SOME OF THESE PROCESSES, AND THEN REALLY SOME OF THE BIG STRUGGLES WE HAD WITH GRIMES IS THAT THESE AGE STRUCTURES ESPECIALLY THE CONCRETE STRUCTURES, SO TO GIVE YOU A PARTICULAR EXAMPLE, IN THAT IMAGE THERE ON THE LEFT SIDE OF THE PLANT SIDE IS OUR FILTERS. SO RAW WATER COMES IN, IT SITS IN THOSE BIG, BLUE POOLS TO KIND OF SETTLE AND CLEAR THE WATER UP A LITTLE BIT, AND THEN YOU RUN IT THROUGH THE FILTERS. AND THOSE FILTERS ARE CONCRETE STRUCTURES WITH CONCRETE WALLS THAT ARE A FOOT, A FOOT AND A HALF THICK. AND WE'RE AT THE POINT WHERE WE HAVE TO WATCH VERY CAREFULLY FOR ANY CRACKS OR THINGS THAT DEVELOP. WE HAVE TESTS.
WE TAKE A FILTER OUT OF SERVICE, WE LOOK FOR LEAKS. SO NORMALLY WHEN YOU HAVE THESE OLD CONCRETE STRUCTURES, THAT'S SOMETHING YOU WOULDN'T HAVE TO WORRY ABOUT.
IF YOU LEAK FROM THE INCOMING SIDE AND YOU'RE CONNECTED TO THE OUTGOING SIDE, THE STATE SAYS THIS IS A CROSS CONTAMINATION TYPE ISSUE. THE CREDIT YOU GOT FOR THAT IS UNDONE. THAT'S A CRITICAL NORMAL PART OF THE PROCESS AT GRIMES AS AN EXAMPLE OF WHAT WE'RE DOING.
AND WHEN WE TAKE THESE DOWNS SOME PULLS SHOW UP SOMETIMES IN CONCRETE WALLS.
WE'RE AT THE POINT STRUCTURALLY THESE THINGS HAVE JUST REACHED END OF LIFE.
IN ADDITION TO THAT YOU CAN SEE THAT THE SITE IS SOMEWHAT RESTRICTED, SO THE IDEA OF PUTTING A NEW GRIMES WATER PLANT ON THAT SITE CREATES SOME CONSTRUCTABILITY CHALLENGES OF SAYING, WELL, YOU TAKE THIS OUT OF SERVICE BUT THEN WE'D BE LIMITED TO JUST THE HARGESHIEMER AND NORTH EAST PLANT, WHICH WORKS WELL MOST OF THE TIME, BUT IF IT GOES DOWN, WHAT ARE WE GOING TO DO? THERE'S DIFFERENT CHALLENGES LIKE THAT THAT LED THROUGH OUR MASTER PROCESS TO SAY SHUTTING DOWN GRIMES SEEMS TO BE THE BEST OPTION. ALTHOUGH I'LL ADD INTO THAT THAT THERE ARE A LOT OF FINANCIAL BENEFITS TO GOING TO A TWO- PLANT SYSTEM. AND PFAS PHASE IS A GOOD EXAMPLE OF THAT. AS THE ENGINEER AND MASTER PLANTS BUILT THEIR OPCS TO LOOK AT POTENTIAL COSTS, THIS SEEMED TO BE A GOOD WAY TO GO TO SHIFT THAT CAPACITY TO THE OTHER TWO PLANTS. AND THEN ON TOP OF THAT SOME OF YOU WILL REMEMBER, IF YOU WERE AROUND, I IN PARTICULAR WAS REALLY EXCITED WE WERE ABLE TO TAKE THOSE MASTER PLANS AND PUT THEM ON A SCHEDULE TO LET US CASH FUND. WE WORKED REALLY HARD TO GET TO A PAY-AS-YOU-GO CASH FUNDED PROCESS ULTIMATELY BECAUSE WE BELIEVE THAT GAVE US GOOD FLEXIBILITY, BUT IT'S THE MOST BENEFIT TO THE RATEPAYER. YOU GUYS KNOW THIS IN EVERYTHING ELSE YOU DEAL WITH, IF WE CAN GET AWAY FROM THE DEBT WE CAN, THE DEBT ULTIMATELY ENDS UP FOR US IN THE RATEPAYER.
SO THIS IS THE SCHEDULE THAT WE ENDED UP WITH, AND THIS REMINDER WILL BECOME IMPORTANT.
WE'LL SHOW IT TO YOU LATER, BUT BACK AROUND 2019, 2020, WE BROUGHT ALL THESE MASTER PLANS TO YOU, AND AT THE TIME IT WAS KIND OF A TRIUMPH. WE GOT THESE MASTER PLANS AND WE HAD ALMOST $500 MILLION IN PROJECTS OVER THE FULL SCOPE OF THE MASTER PLANS. AND WE SAW THAT AND THOUGHT THERE'S NO WAY, WE'RE NOT GOING TO BE ABLE TO MAKE THIS WORK. AND THROUGH OUR RATE MODELING WE STARTED FINDING WAYS HOW CAN WE TIME THIS? WHICH PROJECTS CAN SHIFT A LITTLE ON TIMING, AND HOW CAN WE GET EVERYTHING DONE? AND ULTIMATELY WE WERE ABLE TO BRING A CASH FUNDED CIP PLAN THAT BROUGHT ALL THE MASTER PLANS AND COUNCIL WAS SUPPORTIVE OF THAT. AND PART OF THE KEY OF DOING THAT WAS PUTTING OURSELF ON A FIVE- YEAR RATE PLAN. WE'LL HAVE SLOW, PLANNED INCREASES LOOKING TO THE FUTURE TO MAKE SURE WE WEREN'T DEFERRING ANY MAINTENANCE.
THAT'S WHERE WE ENDED UP IS $175 MILLION OF PLANT PROJECT. AND THE OTHER BIG REASON TO BRING THIS UP IS THIS EXISTED BEFORE ANY OF THE OTHER REG DID,
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SO IT WAS ALREADY KIND OF A TOUGH FUTURE CHALLENGE AHEAD OF US BECAUSE WE KNEW WE WERE JUST IN THE PHASE OF OUR SYSTEM WHERE WE WERE GOING TO DO BIG PLANT PROJECTS THAT WERE GOING TO COST $170 MILLION, AND THAT IS A PRE- COVID NUMBER. SO ON THAT NOTE LOOKING BACK AT OUR FINANCES, A COUPLE OF THINGS. A BIG THING TO POINT OUT WHEN WE LOOK BACK AT THIS IS THE FIVE- YEAR RATE PLAN HAS BEEN A REALLY SUCCESSFUL MODEL FOR US. AND EVEN THE RATE MODEL THAT WE USE TO DESIGN THESE RATES AND FORECAST HAS BEEN VERY HELPFUL.YOU CAN SEE THE LIGHTER COLORED LINES WITH THE WHITE DOTS.
THOSE ARE WHAT IN OUR MODEL THAT WE BUILT OUR RATES AROUND, THAT'S WHAT WE PROJECTED THAT WE WOULD DO. AND THEN THE DARKER LINES ARE THE REVENUES THAT WE ACTUALLY CAPTURED. A COUPLE OF POINTS TO KIND OF NOTE OVER THIS LAST FIVE- YEAR PLAN IS THAT WE HAD A LITTLE HIGHER THAN PROJECTED IN '22 AND '23, AND THOSE WERE DEFINITELY BECAUSE WE HAD HIGHER CONSUMPTION YEARS. IF YOU USE MORE WATER, WE HAD MORE REV FEW. ONE OTHER TOPIC WHEN WE DID THE FIRST RATE MODEL IS COST OF SERVICE AND HOW ARE THINGS PAYING FOR THEMSELVES. ONE OF THE THINGS WE DISCOVERED IS OUR WATER RATES ARE PAYING FOR WATER AND A BIT OF SEWER. OUR SEWER RATES ARE UNDERCOLLECTING AND SEWER IS NOT PAYING FOR ITSELF.
THE CORRECTION TO JUST MAKE THAT RIGHT AT IT TIME WAS GOING TO BE AN UNTENABLE RATE INCREASE FOR THE CITIZENS. WE JUST SAID WE'RE GOING TO TAKE THAT OPTION OFF THE TABLE.
BUT WHEN WE BROUGHT YOU A FIVE- YEAR PLAN, WE BAKED IN A SLOW CORRECTION.
AGAIN, THE THING THAT HAS BEEN REALLY SUCCESSFUL FOR US IS IF WE CAN FORECAST ENOUGH AND LOOK INTO THE FUTURE ENOUGH, WE PLAN THESE THINGS OUT SO THAT THEY'RE STEADY AND EASIER TO MAKE PROGRESS WHERE WE NEED TO BE. THAT OTHER BULLET KIND OF POINTSTHALITY OUT THAT WATER REVENUE INCREASED OVER 28% THAT TIME WHILE SEWER WENT UP 40%, AND IT'S HELPED BRING US CLOSER. NOT ALL THE WAY THERE YET, BUT WE'RE MUCH CLOSER TO THOSE BEING BALANCED SO WATER RATES PAYS FOR WATER, SEWER PAYS FOR SEWER.
OUR EXPENSES HAS A FEW UNIQUE ITEMS TO LOOK BACK ON.
IF YOU LOOK AT THE TOP LINES THAT ARE TOTALS, WE'RE IN THE BALLPARK. OUR PROJECTIONS WERE PRETTY GOOD, WHICH IS EVEN MORE INTERESTING IN LIGHT OF THE FACT THAT WHEN WE DID THE PROJECTIONS, WE DIDN'T KNOW COVID WAS COMING, BUT THERE'S A FEW TRICKY THINGS HIDDEN IN THIS GRAPH.
THE TOTAL LOOKS PRETTY GOOD, BUT YOU CAN SEE THE BLUE LINES ARE O & M. OUR ACTUAL O &M SHOT OFF SIGNIFICANTLY. CHEMICALS AND PIPES WAS OUR TWO BIGGEST STRUGGLES. AND THEN ON TOP OF '22 AND '23, THOSE WERE HIGH USAGE YEARS.
SO NOT ONLY WAS OUR CHEMICAL USAGE HIGHER BUT THE UNIT PRICE OF CHEMICAL USAGE WAS HIGHER. THERE ARE SOME OTHER INFLATION THINGS BUILT IN THERE, BUT THAT'S WHERE YOU SEE IN THE BLUE LINES A DEPARTURE AND A LITTLE BIT OF CATCHING BACK UP DUE IN PART TO NOT HAVING A REAL HIGH CONSUMPTION. THE OTHER TRICKY THING HERE THE GREEN LINES AT THE BOTTOM, THOSE ARE OUR FUNDS BALANCE. JUST LIKE IN YOUR PERSONAL BUDGET YOU'VE GOT THE MONEY COMING IN AND MONEY GOING OUT, AND WHAT DO YOU HAVE AT THE END.
FOR US WHEN WE DESIGN RATES THAT'S WHAT WE'RE WATCHING. ARE OUR FUND BALANCES HEALTHY, AND ARE WE PREPARED FOR WHAT WE NEED THAT ACTUALLY BOUNCES AND ALTERNATES AROUND. PART OF THE REASON FOR THAT IS WHEN COVID HIT ONE OF THE DIRECTIVES WAS WE DON'T KNOW WHAT'S COMING, LET'S MOVE CAUTIOUSLY INTO THIS.
AND SO OUR CIP SCHEDULING, WE JUST POSTPONED OR HELD PROJECTS.
SO CIP WENT DOWN AS WE TRIED TO FIGURE OUT WHAT WE'RE GOING TO HAVE TO DO TO BE READY FOR WHATEVER WAS COMING.
ON TOP OF THAT REVENUES WERE UP TO KIND OF OFFSET.
SO OVERALL OUR RESERVE HAS ENDED UP ABOUT WHERE IT NEEDED TO BE IN SPITE OF SOME UNPREDICTABLE EVENTS AT THAT TIME.
I'LL TRY TO WORK THROUGH THIS ONE BRIEFLY.
I'LL JUST SAY THE 11,525,000 YOU'VE GOT THERE, THAT WAS INFLATION WE'RE ABLE TO LOOK BACK AND SAY THIS WAS A PROJECT WE PLANNED.
WE HAD A PRICE FOR WHAT WE THOUGHT IT WOULD COST, AND WE CAN TIE DIRECTLY TO A COVID RELATED INFLATION THAT PUSHED IT UP.
SO THAT $11. 5 MILLION, THAT IS BUDGET OVERAGE IN OUR CIP PROJECT. AND ALMOST ENTIRELY THAT WAS DUE TO PIPE COSTS BECAUSE WE HAD OUR MAJOR SECOND PRESSURE PLANE PROJECTS THAT WAS A 30 INCH LINE COMING AROUND REBECCA GOING UP TO THE NEW PIPE STATION. THAT 30- INCH HIT US HARD ON THE COVID INFLATION PIECE. AND THEN THERE'S A FEW OTHER PROJECTS IN THAT. THE OTHER THING WE LEARNED IN CIP OVER THE LAST FIVE YEARS IS WE MADE A PLAN, WE MADE NO ALLOWANCE REALLY FOR UNPLANNED PROJECTS. WE ALLOWED CONSTITUENCIES IN THE THINGS WE HAD. WELL, NOW WHEN WE GO AND LOOK BACK, IN THAT FIVE- YEAR PERIOD WE HAD 51 UNPLANNED PROJECTS.
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GRANTED THERE ARE SEVERAL OF THEM THAT ARE SMALLER PROJECTS AND WHAT HAVE YOU, BUT THE TOTAL OVER THAT TIME WAS 13. 8 MILLION.NOW WHEN WE BRING YOU OUR FIVE- YEAR CIP, WHICH I THINK IS MAYBE ATTACHED IN THE PACKET IS WE HAVE A PLACEHOLDER NOW.
WE KNOW ROUGHLY AT FIVE YEARS WHAT UNPLANNED DOLLAR FIGURES TEND TO BE AND KNOW WHERE THEY'RE COMING FROM. THE PIE CHART ON IT RIGHT THERE, THAT IS ONLY FOR UNPLANNED PROJECTS AND TO SAY WHERE DID THOSE COME FROM, BECAUSE IT KIND OF SHOCKED US AT FIRST TO SAY WE'VE GOT THIS MANY WE DIDN'T EVEN HAVE ON OUR RADAR AND THEY SHOWED UP, ABOUT TEN OF THEM PER YEAR. AND SOME OF THE BIG PROJECTS CITY RELOCATE. WE FIGURED OUT WHEN THE CITY MAINTENANCE FEE KICKED IN AND WE STARTED GETTING SOME STREETS DONE, WE TRIED TO GET AHEAD OF THAT.
AND IF THERE'S ANY LINES THAT BE REPLACED, WE'VE GOT TO REPLACE THEM. STATE RELOCATES.
TEX DOT IS DOING WORK IN TOWN AND WHEN THEY DO WORK AND WE'RE IN THEIR WAY, WE GET IT MOVED.
WE'VE GOT IMPROVEMENTS THAT INCORPORATE SOME WATER AND SEWER IMPROVEMENTS. WE ALSO HAD SOME THAT WERE GENERATED BY US. JUST NEW NEEDS DEVELOPS.
SOMETHING NEW BROKE THAT WE DIDN'T KNOW WAS GOING TO BREAK. WATER UTILITY HAD SOME UNPLANNED PROJECTS WE ADDED, AND ENERGY SAVINGS WAS NOT ON OUR ORIGINAL CIP WE BROUGHT. THE RATE MODEL THAT WE'VE BEEN USING HAS BEEN A VERY VALUABLE TOOL, AND THE FUNNY THING ABOUT WATER IS PROJECTING REVENUES, YOU KNOW, THE FIRST STEP YOU DO IS YOU OPEN UP YOUR FARMER'S ALMANAC.
THE CIP NEEDS TO ACCOUNT FOR MASTER PLANS FOR UNPLANNED PROJECTS AND OTHER MAINTENANCE ITEMS. THOSE WERE BAKED ENAS THEY WEREN'T BEFORE. THE FIVE- YEAR RATE PLAN I'VE SUNG THE PRAISES OF THAT METHOD BEING ABLE TO BRING YOU ALL A FIVE- YEAR PLAN, LOOK AT IT, AND BE READY FOR FUTURE PROJECTS AND UNEXPECTED THINGS. AND COVID, YOU KNOW, WE SEE THE INFLATION, AND IT'S PRETTY MUCH STUCK FOR A LOT OF THE THINGS THAT WE HAVE GOING ON. BUT THE CONSISTENT, STEADY RATE ADJUSTMENTS HAS BEEN -- HAS BEEN HELPFUL.
ALL RIGHT, SO WE GOT A LOOK INTO THE PAST AND THINGS WE DID RIGHT AND THINGS WE COULD DO BETTER AT, AND SO NOW WE'RE GOING TO TALK ABOUT THE UPCOMING CHALLENGES. ONE OF THOSE FIRST ONES IS PFAS.
RIGHT NOW WE HAVE A SIMPLIFIED TIME LINE THAT THE EPA HAS PUT IN AS PART OF THEIR REGULATION. AND THE BIG DATE TO LOOK AT IS APRIL 2029. THAT'S WHEN UTILITIES ACROSS THE STATE HAVE TO BEGIN IMPLEMENTING SOLUTIONS AND TREATMENT METHODS TO REDUCE PFAS CONCENTRATIONS. A LOT OF YOU ALREADY KNOW THE NEW LIMITS THAT THE EPA HAS SET.
4 PARTS PER TRILLION FOR CERTAIN PFAS CHEMICALS, 10 PARTS PER TRILLION FOR OTHERS. AND THROUGH SOME INITIAL SAMPLING EVENTS WE HAVE DISCOVERED THAT TWO OF OUR WATER SOURCES DO CONTAIN PFAS LEVELS ABOVE THE MCM.
WE ARE CONTINUING TO SAMPLE AND SEE IF WE CAN FIND ANY TRENDS IN THAT DATA. DOES IT CHANGE SEASONALLY? DOES IT CHANGE WHEN THERE'S A DROUGHT? THE MORE DATA WE CAN COLLECT, THE MORE BETTER WE CAN -- OR THE BETTER WE CAN REALLY DIVE INTO THE DATA AND SEE HOW WE'RE GOING TO TREAT THIS.
SO THIS IS PROBABLY THE -- THE MAIN SLIDE FOR THE PRESENTATION. THIS IS A BREAKDOWN SHOWING OUR TIME LINE WITH THE 2019 MASTER PLAN AND THEN OUR NEW EXPEDITED TIME LINE TO REACT TO THE PFAS REGULATIONS. SO IN 2019 WE HAVE THE PLAN THAT WILL DO THE REHAB OF NORTH EAST. WE HAVE THIS FIVE- YEAR GAP WHERE WE CAN BUILD THIS CASH RESERVE BASED ON OUR FIVE-YEAR RATE PLAN. AND THEN WITH THOSE -- WITH THAT CASH WE CAN GO IN AND START DOING THESE PROJECTS. NOW, AS WE LOOK AT THE NEW DEADLINES AND THE THINGS THAT WE HAVE TO COMPLETE, THAT FIVE YEARS IS NOW FILLED WITH DOING PROJECTS. WE HAVE TO GET THOSE DONE BEFORE THAT DEADLINE HITS. AND WHAT'S INTERESTING ABOUT THIS, IT'S ALMOST MADE A WHAT CALL A PERFECT STORM IS WE KNOW WE WANT TO SHUTDOWN GRIMES. WE DON'T WANT TO INVEST MONEY INTO GRIMES TO TREAT PFAS.
WE CAN'T SHUTDOWN GRIMES UNTIL NORTH EAST HAS BEEN UPGRADED AND CAN HANDLE THAT CAPACITY.
EVEN WITH THAT CAPACITY, THAT LEAVES US ONE PLANT WHO CAN SUPPLY THE TOTAL DEMAND. WELL, SOUTH SIDE PLANT CAN'T
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GET ANY WATER FROM THE NORTH SIDE, SO NOW WE NEED A CROSS TOWN PIPELINE TO GET WATER TO THE SOUTH SIDE PLANT. WELL, THE SOUTH SIDE PLANT CURRENTLY CAN'T HANDLE ALL THAT DEMAND AND TREAT IT ALL.SO IT'S REALLY A CASCADING OR DOMINO EFFECT. ALL THESE PROJECTS ARE INTERLOCKED WITH EACH OTHER BECAUSE THEY RELY ON ONE ANOTHER TO BE ABLE TO DO THE THINGS THEY NEED TO DO. SO MATT MADE SURE TO HAVE ME TALK ABOUT THE PRICE INCREASE FOR THIS SLIDE.
SO WE TOOK ON THE LEFT IS THE ORIGINAL COST FROM THE 2019 MASTER PLAN, AND ON THE RIGHT ARE THE ESTIMATED PRICE INCREASES.
IT'S ABOUT A 24% INCREASE FROM THE 2019 TOTAL TO THE 2024 TOTAL. WHEN WE LOOKED AT THIS, WE DID OUR BEST TO LOOK AT WHAT SCOPES DO WE KNOW FOR SURE WE CAN GET GOOD PRICING FROM. FROM THAT PRICING, HOW CAN WE TAKE THOSE DIFFERENCES AND APPLY TO PROJECTS IN THE FUTURE? SO THIS IS OUR BEST LOOK INTO THE CRYSTAL BALL. IT HAS A LOT OF CONSERVATIVE NUMBERS IN THERE. WHEN YOU LOOK AT JUST PFAS BY ITSELF, WE'RE LOOKING AT 60 TO $150 MILLION JUST TO TREAT PFAS.
BUT AGAIN, WE JUST CAN'T TREAT IT WITHOUT GETTING THESE PLANTS UPGRADED SO THEY CAN HANDLE THE ADDITIONAL DEMAND AS WE TAKE
PLANTS OFF-LINE. >> JEREMIAH, PAUSE ON THIS SLIDE FOR A SECOND. WHEN MAYOR HURT AND COUNCIL MEMBER WERE THERE A COUPLE WEEKS AGO WE TALKED ABOUT THIS PARTICULAR ISSUE AND SOME OF THE RIDICULOUSNESS WITH WHICH THESE REGULATORS HAVE PUSHED THESE STANDARDS OUT BECAUSE THE MINIMUM DETECTABLE LEVEL. YOU CAN HAVE ARSENIC IN THE WATER THAN YOU HAVE THIS STUFF.
WE THINK AND WHAT WE HEARD FROM THE LEGISLATORS IS THEY BELIEVE RELIEF WILL BE COMING. WE DON'T KNOW WHEN, DON'T KNOW HOW. WE KNOW THE U.S.
CHAMBER OF COMMERCE HAS SUED THE FEDERAL GOVERNMENT OVER THESE STANDARDS, AND I HAVE MY BET ON WHETHER OR NOT THE TRUMP ADMINISTRATION IS GOING TO DEFEND PREVIOUS BIDEN ADMINISTRATION'S ACTIONS HERE OR NOT. EVERYONE CAN PUT THEIR WAGERS WHERE THEY CHOOSE TO PUT THOSE. WE THINK CHANGES WILL BE COMING.
I THINK IT'S PRUDENT TO PLAN ON IT NOT CHANGING FOR THIS DISCUSSION PURPOSE. FOR THE AUDIENCE IN THE ROOM, THIS IS A VERY FLUID -- NOT TO USE THAT WORD WITH WATER, BUT THIS IS A VERY FLUID SITUATION, AND WE WILL ADAPT AS NEW INFORMATION COMES DOWN FROM THE FEDERAL GOVERNMENT.
THIS IS REALLY WHAT WE THINK IS A WORST-CASE SCENARIO, BUT I DO BELIEVE IT COULD GET BETTER. THANK
YOU. >> AND WE'RE COLLECTING DATA ON THIS ALL THE TIME. WE HAVE CONSULTANTS. WE'RE WORKING THROUGH A SCOPE AND A CONTRACT WITH THE CONSULTANT TO DIRECTLY ADDRESS THE PFAS, BUT WE HAVE OTHER CONSULTANTS FEEDING US INFORMATION WORKING IN OTHER PARTS OF THE STATE, THE COUNTRY HELPING US SEE WHAT ARE SOME REAL COSTS, WHAT ARE TREATMENT OPTIONS WHERE THEY'RE SEEING SUCCESS. SO WE REALLY HAVE OUR FINGER ON THE PULSE OF THIS. SO AS WE PROVIDE YOU UPDATES, WE EXPECT THIS NUMBER TO CHANGE.
>> JUST ONE MORE CLARIFICATION OF THAT.
IT SAYS BIG PROJECT COST WITH PFAS AND EDUCATION, BUT THIS DOES NOT INCLUDE THE COST OF THE
THIS INCLUDES -- >> THAT'S PART OF THE EXPANSION. IF THE RULES CHANGE, THEN THESE NUMBERS GO DOWN?
>> THE NUMBERS GO DOWN AND ALSO THE TIME LINE COULD CHANGE.
LET'S SAY THEY DON'T CHANGE THE MCL BUT THEY CHANGE THE YEARS WE HAVE TO MEET IT, WE COULD START SHIFTING THINGS, AND THEN WE CAN -- WHEN WE LOOK AT THE SCOPE OF THESE PROJECTS THERE'S CERTAIN ITEMS LIKE FOR INSTANCE A BELT BREATH THAT CAN BE IN PHASE ONE OR THE EXPANSION.
WE CAN MOVE THINGS AROUND AS WHAT FUNDING WE HAVE AND THEN THE TIME LINE WE HAVE TO MEET
YOU. >> OUR NEXT CHALLENGE, AND THAT'S THE PK RAW WATER ROUGHING FACILITY.
I HAD TO PRACTICE THAT IN THE CAR A LOT BECAUSE IT IS A TONGUE TWISTER. SO THE CHALLENGES ABOUT THIS PLANT. FIRST ONE IS IT'S REMOTE, SO WE'RE HAVING AN OPERATIONAL CHALLENGE. HOW ARE WE GOING TO MAN IT, STAFF IT? ARE WE LOOKING AT REMOTE, ARE WE LOOKING AT ON SITE? ARE WE LOOKING AT OPERATORS WHO LIVE IN BRECKINRIDGE AND WORK AT THE PLANT THEN? BUT ALSO WE HAVE TO LOOK AT THE IMPACT IT'S GOING TO HAVE ON AEROOPOPERATIONAL BUDGET. TO RUN THIS PLANT AT 4 MGD IT'S GOING TO COST ABOUT $1. 8 BILLION A YEAR. THIS IS OUR BEST ESTIMATE.
[05:05:01]
WE HAVE CONSULTANTS LOOKING AT ACTUAL COSTS, ACTUAL RATES, AND PUMP EFFICIENCIES SO WE CAN GET A BETTER VALUE ON THAT.BUT TO PUT THAT INTO PERSPECTIVE IT WOULD TAKE A 2.7% RATE INCREASE JUST TO COVER THE COST OF OPERATING THIS PLANT. SO THERE'S SEVERAL WAYS WE CAN ADDRESS THIS. IT CAN BE A RATE INCREASE. IT CAN BE A SING-TIME FEE THAT IS ON EVERY BILL. IF YOU LOOK AT AS A SINGLE FEE THAT ISN'T DIRECTLY RELATED TO RATES, IT'S ABOUT 4 TO $5, AND WE'RE NOT RECOMMENDING ANYTHING RIGHT NOW. WE'RE JUST PRESENTING THIS SO YOU GUYS HAVE A CHANCE TO THINK ABOUT IT AND SEE HOW YOU GUYS WOULD LIKE TO HANDLE
IT. >> WELL, ON THIS ARE THERE CONCERNS OR NEED FOR RUNNING THIS PERIODICALLY SO THAT IT DOESN'T JUST SIT THERE AND DETERIORATE, AND THEN WHEN WE ACTUALLY NEED IT, OH, NOW THESE 20 THINGS ARE BROKEN OR NOT WORKING, AND SO WE'VE GOT TO THROW $2 MILLION AT IT OR
CORRECT. >> IN A SHORT PERIOD OF
TIME. >> THOSE MEMBRANES ARE NOT SUITED FOR LONG PERIODS OF DOWNTIME. AS LONG AS YOU CAN KEEP A CONSTANT FLOW OF WATER, YOU'R GOING TO GET THE MOST EFFICIENCY OUT OF THEM AND THE LONGEST LIFE. AS SOON AS YOU SHUT THEM DOWN, THERE'S A SPECIAL PROCESS. THEY CALL IT PICKLING, AND YOU ADD CHEMICALS. AND THE MANUFACTURERS WILL SAY IT'S GREAT, IT'LL LAST FOR SO MANY MONTHS, BUT WE HAVE SEEN ON OUR SIDE THAT PICKLING THEM DOES REDUCE THE LIFE. AND SO IF WE WANT TO MAXIMIZE THE LIFE OF THESE MEMBRANES, IT'S BEST TO AT LEAST PUT SOME WATER THROUGH THOSE -- THROUGH THE PLANT.
>> SO ANY WATER GOING THROUGH IT
AND IT IS NOT OPERATIONAL. WE DO NOT HAVE MEMBRANES IN PLACE. WE PURCHASED THE MEMBRANES, AND WE'RE WORKING UP TO THAT
PROCESS. >> BUT ONCE WE GET THEM IN, ARE WE PLANNING ONGOING LIVE SO WE DON'T
LOSE THEM? >> YES, ONCE -- THE PLAN IS ONCE WE GET IT STARTED, WE WILL CONTINUE TO OPERATE AS MUCH AS WE CAN AND MAKING SURE THAT WE'RE PRODUCING WATER THROUGH THOSE MEMBRANES SO THAT WE GET THE MOST LIFE OUT OF THEM.
YES. >> SO WHAT'S THE TIME FRAME FOR US HAVING THAT FINANCIAL IMPACT?
>> WE HAVE A STARTUP PLAN THAT'S BEEN DRAFTED BY A CONSULTANT THAT'S GOING TO GO THROUGH ALL THE THINGS THAT WE NEED TO DO AND OUR OPERATORS NEED TO DO. THAT'S GOING TO GIVE US THE ACTUAL COST AND ALSO SOME IDEAS HOW TO STAFF IT. THAT'S OUR STARTUP MANUAL. WE ALSO HAVE A CONSULTANT UNDER CONTRACT TO START BUILDING THE CONSTRUCTION. SO THERE'S STILL A LOT OF THINGS THAT NEED TO BE TESTED. THEY NEED TO TEST PUMPS, MAKE SURE THE ELECTRICAL IS WORKING, ALL THE CONTROLS AND DATA ARE SET. SO WE'RE LOOKING TO START IT HOPEFULLY THIS YEAR BEFORE THE END OF 2025. AND THAT IS OUR BEST --
>> THE BEST SCENARIO. TO ADD A LITTLE MORE COLOR TO THAT, WHEN THE DROUGHT WAS OVER, WE WERE RUSHING TO GET THIS PLANT READY TO GO.
AND THE DISCUSSION WAS HAD AND THE DECISION WAS MADE THAT WE WOULD NOT TURN THIS PLANT ON BECAUSE IT'S ABOUT A MILLION DOLLARS A YEAR JUST TO KEEP THE LIGHTS ON, AND WE DIDN'T NEED IT.
AND SO IT WOULD BE $10 MILLION IN HINDSIGHT LOOKING THAT WE ACTUALLY SAVED BY NOT DOING THAT.
NOW THAT WE'VE HIT THE TRIGGER WITH HUBBARD ALTHOUGH HUBBARD IS HIGHER THAN IT WAS, BUT IT WENT DOWN TO THE TRIGGER TO START OUR RAMP UP PHASE FOR THE USE OF THIS PLANT, SO WE ARE CONTINUING THAT PROCESS AND ASSUMING THAT WITHIN 12 MONTHS FROM THAT DATE, SHOULD BE CLOSE TO THE END OF 2025, WE'LL NEED TO BE ABLE TO LOOK AT SERIOUSLY USING THIS PLANT POTENTIALLY, AND SO WE'RE WORKING THROUGHTHAT PROCESS. RODNEY AND HIS TEAM ARE ACTIVELY SOLVING THE PROBLEM ON THAT, AND WE EXPECT TO BE READY TO GO.
ONCE WE TURN IT ON, WE NEED TO HAVE A CONVERSATION ARE WE GOING TO LEAVE IT ON, AND I THINK THAT'S A STRATEGIC DISCUSSION WE CAN HAVE AT THAT TIME. WE'VE ORDERED THE MEMBRANES.
WE'RE WAITING FOR THEM TO BE DELIVERED. THEY'LL BE INSTALLED. WE'RE FINISHING THE PIPELINE FOR THE RO CONCENTRATED DISCHARGE. IT'S ALL MOVING FORWARD IN A VERY GOOD WAY, SO I COMMEND THE GENTLEMEN FOR WORKING TO SOLVE THAT PARTICULAR PROBLEM, BUT I WANT TO ALSO REMIND EVERYBODY IT WAS VERY INTENTIONAL NOT TO TURN THE PLANT ON BECAUSE WE SAVED $10
>> AND TO THAT SAME POINT, THERE ARE MODELS THAT WE CAN BUILD TO LOOK AT HOW CAN WE MAXIMIZEMAXIMIZE WATER USAGE AND LOWER OUR PRICE.
SOME OF THE WATER WE USE IS GOING TO BE MORE EXPENSIVE THAN OTHERS, AND THERE'S -- IT'S ALMOST LIKE A GAME. YOU TURN SOME KNOBS IT IT'LL SPIT OUT YOU SHOULD USE "X" AMOUNT FROM THIS PLANT, "X" AMOUNT FROM THIS PLANT AND THIS PLANT, AND YOUR TOTAL COST WILL BE "X.
" AND WE CAN GO THROUGH THAT EXERCISE TO MAKE SURE THAT WE'RE BEING EFFICIENT IN HOW WE RUN THESE PLANTS AND WHAT WATER SOURCES THAT WE'RE
[05:10:01]
USING. >> DO YOU HAVE AN UPDATE -- I JUST HAVEN'T HEARD ON COMPLETION FOR THE DISCHARGE
LINE? >> I DON'T KNOW WHAT THE LATEST IS OTHER THAN THEY'VE REMAINED AHEAD OF SCHEDULE.
AND I THINK WE WERE ORIGINALLY
TALKING ABOUT -- >> YOU GOT A DATE?
>> I THINK BY DECEMBER OF THIS YEAR.
>> THAT'S GOING TO BE IMPORTANT TO TURN IT
ON. >> WE STILL HAVEN'T HEARD BACK FROM TCQ ON OUR DISCHARGE PERMIT, SO THAT'S ALSO ANOTHER HURDLE WE HAVE TO GET OVER.
SO YOU SHOULD HAVE GOTTEN, HOPEFULLY, IN THE PACKET A LARGE CIP PLAN. HOPEFULLY IT WAS ON 11 BY 17 BECAUSE IT GETS REALLY SMALL ON A REGULAR SHEET OF PAPER, BUT THAT REALLY BREAKS DOWN OUR PLAN FOR THE NEXT FIVE YEARS ON CIP PROJECTS. AND WHAT YOU'LL NOTICE IS WE ARE STARTING TO ALLOCATE OUR CIP PLANS FOR UNPLANNED AND ROUTINE PROJECTS. SO THE UNPLANNED PROJECTS THAT MATT TALKED ABOUT, PROJECTS THAT DEAL WITH MAINTENANCE AND MAKING SURE THAT WE'RE STAYING AHEAD OF MAINTENANCE EVEN THOUGH WE HAVE ALL THESE BIG NEEDS FOR DEMAND AND FOR PLANT EXPANSION AHEAD OF US. THEN WE AVERAGE ABOUT $22 MILLION A FOR OUR STANDARD PROJECTS.
THOSE ARE PROJECTS WE KNOW WE NEEDED.
THOSE ARE OUR WATERLINE UP GRADES, SEWER LINE, MASTER PLANS WE KNOW WE'RE GOING TO BE NEEDING.
THAT'S WHAT WE'RE CALLING OUR NORMAL CIP PROJECTS. AND THEN YOU CAN SEE ON OUR PLANT EXPANSION AND PFAS, THOSE RAMP UP.
YOU'LL SEE OUR PLANT INCREASE IN 2029 WHEN WE HOPE WE'LL COMPLETE ALL THOSE AND WE CAN START OVER. NOW, THIS IS OUR LIVING DOCUMENTS. NEXT YEAR WE WILL REVIEW IT, THINGS WILL CHANGE. IF THE POLITICAL SITUATION CHANGES AND TIMELINES CHANGE, WE WILL UPDATE THAT, BUT THIS IS KIND OF OUR BEST PLAN LOOKING FORWARD OF WHAT WE EXPECT TO NEED, HOW WE EXPECT TO SPEND IT, AND WHAT PROJECTS THAT YOU CAN EXPECT TO BE COMPLETED.
SO WE HAVE $315 MILLION. HOW DO WE EXPECT TO FUND THOSE PROJECTS? OUR PRIMARY SOURCE THAT WE'RE LOOKING AT IS A TEXAS WATER DEVELOPMENT BOARD. WE ALREADY BEGAN THE APPLICATION PROCESS FOR THE NORTH EAST REHAB, AND SO THE WATER BOARD HAS THEIR DRINKING WATER PROGRAM THAT WE PLAN TO SUBMIT AS MANY PROJECTS AS WE CAN AND SEE WHAT KIND OF FUNDING OPTIONS AND AND THEY GIVE US.
THEY ALSO HAVE AN EMERGENT CONTAMINATE PROGRAM, WHICH IS FOR PROJECTS DIRECTLY RELATED FOR PFAS.
SO AS OUR CONSULTANTS LOOK AT THESE PROJECTS AND THEY BUILD THESE REPORTS AND THEY BREAK OUT THE COSTS OF TREATING THE PFAS, WE WILL SUBMIT THOSE TO THE WATER BOARD IN HOPES THAT THEY WILL FUND THAT PORTION OF THE PROJECT.
SOME OF THOSE ARE GRANTS. BASED ON THE RULES, IT'S VERY UNLIKELY THAT CITY OF ABILENE WILL BE GRANTED A GRANT. WE DON'T QUALIFY FOR THEIR RULES, BUT WE WILL ALWAYS TRY. THE NEXT PROGRAM IS FUNDED THROUGH THE EPA. I CHECKED LAST NIGHT AND THERE WASN'T ANY UPDATES ON THEIR FUNDING AND HOW THEIR ALLOCATING THEIR MONEY AND IF THEY'RE GOING TO LOSE THEIR FUNDING. BUT WHAT'S INTERESTING ABOUT THEIR PROGRAM IS THEY ALLOW YOU TO GET A COMMITMENT FOR FUNDING FOR MULTIPLE PROJECTS THROUGH WHAT THEY CALL A MASTER AGREEMENT. AND FROM THAT AGREEMENT WHEN A PROJECT IS READY, YOU CAN THEN GO FOR THOSE FUNDS.
THEY WILL RELEASE THEM, AND THEY HAVE SOME BENEFITS WHEN IT COMES TO INTEREST SAVINGS, DEFERRED PAYMENT. THE ONLY HICCUP HERE IS THAT THEY ONLY -- THEY WILL ONLY SPONSOR 49% OF THE PROJECT COSTS, SO WE WILL HAVE TO FIGURE OUT HOW WE'RE GOING TO FUND THE OTHER 51%.
THAT DOESN'T MEAN WE CAN'T GO FROM MUNICIPAL BONDS. THAT'S STILL AN OPTION THAT WE'RE LOOKING AT OR IF OTHEROTHER GOVERNMENT PROGRAMS THAT WILL PROVIDE US SOME FUNDING OR THROUGH RATE INCREASES. SO WE BUILT A -- USING OUR FIVE- YEAR MODEL, OUR RATE MODEL, WE BUILT SOME SCENARIOS TO PROJECT WHAT IT WOULD LOOK LIKE.
HOW DO WE PAY FOR THIS DEBT SERVICE? HOW DO WE PAY FOR THESE BONDS AND THESE PROJECTS, AND WHAT KIND OF SCENARIOS CAN BE USE TO GET GOOD NUMBERS TO SHARE WITH EVERYBODY? WE BUILT FOUR SCENARIOS. FIRST IS THROUGH CASH, NOT TAKING FROM THE WIFIA OR THE TEXAS WATER DEVELOPMENT BOARD.
WE HAVE SPECIAL DEBT FUNDING, AND SPECIAL DEBT AND CASH. SO THAT'S GETTING THOSE LOANS FROM THE WATER BOARD AND THE EPA AND THEN BUILDING UP A CASH RESERVE TO PAY THOSE DEBTS DOWN -- A LOT OF THAT DEBT DOWN WHEN THE FIRST PAYMENT IS
[05:15:04]
DUE. SO IN THE MODEL THERE WERE SEVERAL ASSUMPTIONS WE HAD TO MAKE.HERE'S A LIST OF THOSE, BUT THERE'S ALSO SOME OTHER THINGS WE WANT TO ADD. WE'RE ABOUT TO SHOW YOU SOME NUMBERS THAT TALK ABOUT CUSTOMERS BILL. THOSE NUMBERS ONLY INCLUDE THE WATER AND SEWER CHARGES.
THEY DON'T INCLUDE STREET FEES, STORM WATER FEE, SOLID WASTE. THIS DOESN'T INCLUDE ANY FINANCIAL OBLIGATIONS THAT WE HAVE FOR OUR NEW WATER SOURCES. SO THE WEST TEXAS WATER PARTNERSHIP, ANY OBLIGATIONS WE HAVE, THAT WASN'T REALLY CONSIDERED HERE. THOSE ARE STILL IN THE PROCESS OF STILL BEING WORKED OUT AND ALSO -- RIDGE. ALL THAT'S STILL BEING WORKED OUT, SO WE DIDN'T WANT TO THROW IN SOME RANDOM NUMBERS WE WEREN'T CONFIDENT IN. WE'LL MAKE A NOTE HERE THAT WE SAW SOME OTHER INTEREST RATES DURING THE PENSION PRESENTATION.
THESE WERE FROM -- THESE WERE THE LATEST WE HAD WHEN WE WERE GOING THROUGH THE APPLICATION FOR THE WATER BOARD.
WE ARE 100% CONFIDENT THAT THESE RATES ARE NOT ACCURATE AT THIS CURRENT TIME.
>> JEREMIAH, LET ME GIVE YOU A LITTLE BIT OF COMFORT IN THAT THE NUMBERS IN THE PENSION WERE TAXABLE BONDS. SO THESE WOULD BE TAX- EXEMPT BONDS AS LONG AS CONGRESS ALLOWS US TO DO THAT STILL, AND THEY'RE TALKING ABOUT THAT NOW. BUT IF THEY ARE -- IF THE PENSION IS A TAXABLE OBLIGATION BECAUSE THE NATURE OF IT, SO THAT'S ONE OF THE REASONS WHY THOSE RATES WERE HIGHER THAN THESE AMONG SOME OTHER THINGS, TOO. THAT PRESENTATION MADE ME GLAD I'M A WATER ENGINEER AND NOT A ACCOUNTANT.
OBVIOUSLY WEEK GO BACK AND ADJUST THESE.
ONE THING TO POINT OUT WHEN WE LOOK AT THE RATE INCREASES, WE LOOKED AT THE LOWEST POSSIBLE INCREASE TO MAINTAIN A BALANCED BUDGET. WE WEREN'T TRYING TO BUILD A RAINY DAY FUND WITH THIS. WE WANT TO REDUCE THE IMPACT AS MUCH AS WE CAN WHILE STILL ACCOMPLISHING THE THINGS WE NEED TO DO FOR PFAS AND FOR EXPANSION AND FOR OUR CIP.
>> JEREMIAH THE BIG $300 BILLION NUMBER BECAUSE I WANT TO BE THE FIRST TO TALK ABOUT THESE INCREASES.
FIRST I WANT TO TALK THROUGH THE WAY THIS IS LAID OUT.
ACROSS THE TOP THERE YOU CAN SEE FISCAL YEARS, AND THE PERCENTAGES REPRESENT A PERCENT INCREASE. FOR TODAY'S CONVERSATION WE'RE GETTING DIRECTION FROM COUNCIL ABOUT HOW WE WANT TO TACKLE FUNDING THESE PROJECTS, AND SO IT'S A HIGH LEVEL CONVERSATION.
AND SO IF I SAY A 3% RATE INCREASE, WHAT THAT MEANS TO YOU IS RESIDENTIAL CLASS, INDUSTRIAL CLASS, COMMERCIAL CLASS, THE WATER RATES, THE SEWER RATES. EVERYTHING ACROSS THE BOARD IS JUST GETTING A FLAT PERCENTAGE INCREASE TO HELP US GET A ROUGH IDEA OF WHAT'S THE IMPACT OF ALL THIS.
ONCE WE GET FEEDBACK FROM YOU GUYS ABOUT HOW WE WANT TO TACKLE RATES AND FUNDING, WE'LL GO BACK TO THE DRAWING BOARD AND WE'LL ACTUALLY SKETCH OUT SOME PROPOSED HOW WE WOULD ACTUALLY DO THIS IN THE RATES.
DOES IT NEED TO HAPPEN IN THE BASE RATE? DOES IT NEED TO HAPPEN IN THE VOLUME METRIC RATES OR CHANGE THOSE THINGS UP? THIS IS INTENDED TODAY BE AN EARLY LOOK IN AN ITERATIVE PROCESS OF FIGURING OUT WHAT THE BEST SOLUTION IS AND A CHANCE FOR Y'ALL TO GIVE FEEDBACK. THAT'S WHAT THE RATE PERCENTAGE IS IF YOU SEE THAT ACROSS THE BOARD. ONE OTHER NOTE, TOO, THIS WAS A FIVE-YEAR ISH TIME FRAME, BUT I TACKED ON 2034 BECAUSE IN OUR FUTURE SCENARIOS ONE OF THE THINGS WE LOOKED AT IN CASH FUNDING IS IN THE LAST ROUND IS THE LONG- TERM BENEFIT TO THE CITIZEN, TO THE RATEPAYER, THAT THE MORE YOU YEEZ CASH, THE MORE YOU GET LONG- TERM AFFORDABILITY, SO WE ALWAYS TRY TO FIND THAT WHERE WE CAN. IN THESE SCENARIOS, IF YOU'RE GOING TO COMPARE APPLES TO APPLES WHERE THAT 2024 WE'VE ASSIGNED ALL THE DEBT, PAID ALL THE CASH, AND YOU CAN REALLY COMPARE WHAT IS THE LONG- TERM IMPACT TO THE RATES BASED ON THE DEBT DECISIONS THAT WE MAKE ON THE FRONT END? SO THIS FIRST SCENARIO IS ADMITTEDLY A BIT OF AN OUTLANDISH SCENARIO, BUT, AND THE JOKES GO AROUND AMONG THE STAFF BECAUSE AS EXCITED AS I WAS ABOUT THE CASH FUNDED PLAN THAT WE HAD, I WAS VERY RELUCTANT TO LET GO OF THAT, AND I THOUGHT WE MIGHT HAVE QUESTIONS TODAY. AND SO I PUT IT IN THE MODEL.
WE DESIGN IT, I SAID WHAT WOULD IT TAKE IF WE WERE GOING TO DO THESE PROJECT THE WAY WE WERE GOING TO THEM, AND WE WERE GOING TO STICK TO OUR CASH FUNDED, WHAT KIND OF RATE INCREASES TO THE AVERAGE RESIDENTIAL CUSTOMER WOULD YOU SEE THE ON TOP OF THAT THIS ONE INCLUDES -- WE HAD
[05:20:03]
TO MOVE SO QUICKLY WITH THIS PROJECT THAT THIS INCLUDES INCREASING THE RATES BY 94% STARTING IN THE NEXT COUPLE OF DAYS, ACTUALLY.STARTING IN FEBRUARY. BECAUSE THAT'S JUST WHAT IT TAKES TO START COVERING THOSE COSTS.
SO WE DON'T EXPECT THIS TO BE AN ACTUAL OPTION, BUT IT JUST HELPS TO GIVE YOU THE INFORMATION TO KNOW, YOU KNOW, YOU'RE BASICALLY GOING TO HAVE TO DOUBLE EVERYBODY'S BILL -- EVERYBODY'S BILL IF YOU WANTED TO PAY CASH FOR JUST THESE ADDED COSTS FROM THE PROJECTS.
THE FIRST ONE THIS IS WHAT I THINK IS GOING TO BE REPRESENTATIVE OF A LOT OF CITIES.
THEY'RE GOING TO FIND THEMSELVES SCRAMBLING TO DO PFAS AND THEY'RE GOING TO GO GET EASY DEBT, THE SPECIAL OFFERINGS JEREMIAH WAS TALKING ABOUT WITH THE WATER DEVELOPMENT BOARD, WIFIA HAVE SOME NICE FEATURES TO THEM, BUT THEY DEFINITELY HAVE THEIR SHARE OF RED TAPE.
ON THE STAFF SIDE OF GOING TO GET DEBT TO PAY FOR THESE THINGS, I THINK YOU'LL SEE A LOT OF CITIES TAKE THIS APPROACH SAYING YOU KNOW WHAT LET'S USE COS AND GET THE PROJECTS DONE AND MOVE ON. AND SO YOU CAN SEE THAT THE DEBT GIVES YOU KIND OF THIS SLOW, STEADY INCREASE TO THE RATES. THIS ONE IS GOING TO BE THIS IS YOUR HIGHEST INTEREST. THIS IS ALL THE DEBT, AND SO IN TERMS OF THAT 2034 YEAR, THIS IS YOUR HIGHEST RATE THAT WE END UP WITH.
IN OTHER WORDS, THIS IS THE WORST OPTION FOR LONG- TERM AFFORDABILITY, IF THAT'S WHAT WE'RE LOOKING AT.
NOW, IT'S NOT BY AS MUCH AS YOU MIGHT EXPECT WITH SOME OF THE DIFFERENCES IN INTEREST RATES, BUT IT DOES LOCK IN THE HIGHEST LONG- TERM COST.
AND ONE OTHER NOTE, I CAN'T REMEMBER IF WE MENTIONED IT OR NOT, BUT WE'RE 4. 4% IN '26, THAT INCREASE. AGAIN, WE WERE SAYING WHAT IS JUST THE LOWEST POSSIBLE INCREASE WE CAN DO THAT YEAR TO STILL HAVE A BALANCED BUDGET? THAT MAY NOT BE THE PERCENT WE PROPOSED, BUT IN EACH YEAR LET'S JUST SAY WHAT IS THE ABSOLUTE MINIMUM YOU CAN DO AND COVER YOUR COST? THIS SCENARIO TAKES THE WATER DEVELOPMENT BOARD AND WIFIA DEBT AND SAYS ALL THESE FOUR PROJECTS WE'VE BEEN TALKING ABOUT, THIS 300 SOMETHING MILLION, DEBT FUND THOSE ENTIRELY, NO CASH, BUT WE'LL USE THE WATER BELT MORE THAN WIFIA DID.
SLIGHTLY LOWER INTEREST RATE USUALLY COMES FROM WATER DEVELOPMENT BOARD, AND ALSO WIFIA HAS PAYMENT DEFERMENT. AND SO THE TIME YOU HAVE TO RAISE RATES AND MEET YOUR OBGAEGZS GETS STRETCHED OUT A LITTLE BIT. ORIGINALLY WE WERE HOPING THE FIVE- YEAR PAYMENT DEFERMENT OF WIFIA MIGHT OPEN UP THE OPPORTUNITY FOR US TO DO CASH AGAIN, BUT IT'S NOT QUITE THERE, AS YOU'LL SEE ON THE NEXT SLIDE. ANNUAL DEBT SERVICE.
YOU KNOW, THE TOTAL -- IF YOU JUST PUT THE 300 AND SOMETHING MILLION OF BROKES INTO DEBT, THE ANNUAL DEBT SERVICE ON THAT WORKS OUT TO BE AROUND $24 MILLION. SO WHEN WE TALK ABOUT LIKE THE TRUE AND THE CASH FLOW OF WHAT THE IMPACT OF THESE BIG PLANT PROJECTS IS, WE HAVE $24 MILLION PER YEAR.
THAT'S THE DEBT SERVICE PAYMENT ON THESE PROJECTS.
SO YOU GET A LITTLE BIT OF INTEREST RATE BENEFIT HERE, AND YOU CAN SEE DEBT SERVICE GETS LOWERED TO $855,000.
YOU SAVE $17 MILLION IN INTEREST OVER THE LIFE OF THE LOAN, AND THEN WE'VE GOT A SMOOTHER TRANSITION. SLIGHTLY LOWER LONG- TERM AFFORDABILITY COMPARED TO LAST ONE.
AND THEN OUR FINAL SCENARIO HERE IS TO SAY, WELL, LET'S TAKE ADVANTAGE OF THE WATER DEVELOPMENT BOARD AND WIFIA, AND IF WIFIA WILL DEFER PAYMENTS AND LET US SAVE UP CASH, VERY SIMILAR SCENARIO TO THE PREVIOUS ONE IT WITH THE EXCEPTION OF WHATEVER CASH WE'RE GOING TO DO, WE PAY IT DOWN. THE ONE OTHER EXCEPTION TO THIS ONE IS I DIDN'T JUST DO THE LOWEST POSSIBLE RATE INCREASE. ON THE PREVIOUS FIVE- YEAR PLAN OR ACTUALLY STILL ON THE LAST YEAR OR TWO OF IT FIVE- YEAR PLAN WE'RE ON NOW, WE'VE AVERAGED ABOUT A 6% INCREASE. SO EVERY YEAR FOR THE LAST NOW IT'S BEEN SIX YEARS OR SO, THE WATER AND SEWER RATE INCREASESS ARE ABOUT 6%. AND SO IN THIS SCENARIO I SAID LET'S JUST CONTINUE WITH THAT. THAT'S BEEN A GOOD MECHANISM TO BUILD CASH TO PAY DOWN. SO THAT'S WHAT YOU SEE ACROSS THE TOP OF THERE.
6%, 6%, 6%, 6%. SO STEADY RATE INCREASES. AND WHEN IT'S TIME FOR THE WIFIA DEBT TO BE PAID, WHAT WE DO IS WE TAKE ALL THE CASH THAT WE BUILT- UP, WE PAY THE PRINCIPLE DOWN, AND THEN THOSE WIFIA PAYMENTS START AT THAT LOWER PRINCIPAL.
THE SERVICE THERE IS THAT YOUR ANNUAL DEBT SERVICE
[05:25:03]
GETS LOWERED BY 6 MILLION, AND YOU SPENT $43 MILLION LESS IN INTEREST OVER THE LIFE OF THOSE LOANS.I PROBABLY COULD HAVE INCLUDED IT IN HERE, BUT WHEN YOU LOOK AT THE ACTUAL RATE MODEL, WE ENDED UP SAVING ABOUT $66 MILLION EXTRA DOLLARS. THAT'S HOW MUCH MONEY I PAID DOWN -- WE JUST PAID CASH ON THAT TO GET THE PRINCIPAL DOWN TO TRY TO HAVE SOME BENEFIT.
AND THERE'S A NEGATIVE 11% THERE AND CHAETS ACTUALLY IN THE YEARS YOU CAN'T SEE THAT 6% CONTINUE, AND ONCE WE MADE IT THROUGH ALL OUR PROJECTS, WE ACTUALLY DO A RATE DECREASE TO SAY THIS IS NOW WHAT IT TAKES TO COVER OUR COSTS. SO IT'S ONLY IN THAT FINAL YEAR WHERE I SAY HERE'S WHERE RATES ACTUALLY HAVE TO BE, AND THEN YOU GET TO KEEP THEM THERE BECAUSE THE DEBT SERVICE IS LOWER THAN THE OTHER SCENARIOS. THOSE ARE THE SCENARIOS WE LAID OUT. AND AGAIN, THOSE ARE FOR GETTING DIRECTION BACK.
THE OTHER THING WITH THE NUMBERS TO KEEP IN MIND IS WE ARE EVEN OUR CIP, IT'S LIKE EVERY MONTH EVEN SOMETIMES EVERY OTHER WEEK, WE'RE HAVING TO RERUN THROUGH PROJECT NUMBERS.
WE LEARN SOMETHING NEW. SO ANY FUTURE NUMBERS YOU SEE IN THE PRESENTATION ARE VERY MUCH PLANNING AND EVEN POLITICALLY AND FOR OTHER THINGS IT'S A DYNAMIC SITUATION, SO WE'RE KEEPING THESE UP-TO- DATE AS OFTEN AS WE CAN, BUT THEY'RE VERY PRELIMINARY IN THE SCOPE OF WHAT WE MIGHT BE LOOKING AT.
>> ON THE RATE SCENARIOS, THE FOUR YOU RAN THROUGH, DID THAT INCLUDE $1. 8 MILLIAN A YEAR FOR PK WATER?
>> IT DID NOT. THAT'S PART OF WHAT WE CALLED OUT. IT'S ALSO WHY PK BECOMES A DECISION POINT, WE WILL SAY, HEY, THE PLANT IS READY, WE'VE BUILT EVERYTHING, WE WANT TO TURN IT ON.
HERE'S WHAT YOU MIGHT DO FOR THE RATES.
EITHER WE TACK ON WE USED TO HAVE AN IVY FEE.
YOU CAN BRING THAT MODEL BACK FOR PK WHEN WE RUN IT.
THAT'S NOT INCLUDED IN THESE, BUT WE PUT SOME OF THOSE RULE OF THUMB NUMBERS, SO WE KIND OF KNOW WHAT THE IMPACT WOULD BE IF WE'VE GOT TO DO
THAT ALSO. >> SO WE HAD THE EXPEDITED EXPANSION TIMELINE SLIDE EARLIER.
WHEN DO WE HAVE TO COMMIT TO EITHER CONTINUING WITH THIS PATH OR TAKING THE EXPEDITED TIMELINE?
>> I THINK THAT -- I THINK WE WILL KNOW -- I HOPE WE WILL KNOW IN THE NEXT 12 MONTHS, MAYBE EVEN 6 MONTHS WHERE WHAT HAPPENS IN WORST CASE, IT COULD BE SETTLED.
IT COULD BE COMPLETELY DISMISSED. WE DON'T KNOW. IT COULD BE SOME SORT OF DECLARATORY. WE JUST DON'T KNOW THE OUTCOME BECAUSE THERE'S A LOT OF VARIABLES THAT GO INTO A COURT CASE. BUT I DO THINK THAT WE WILL HAVE SOME UNDERSTANDING OF WHAT'S GOING TO HAPPEN WITH THIS PFAS STUFF BECAUSE A LOT OF PEOPLE ARE TALKING ABOUT THIS JUST LIKE THESE TWO GENTLEMEN ACROSS THE COUNTRY. AND A LOT OF PEOPLE IN WASHINGTON -- THERE WASN'T A SINGLE PERSON WE MENTIONED THIS TO WERE LIKE WE'VE NEVER HEARD ABOUT THIS BEFORE. THEY'RE LIKE TRUST US, WE'RE ON IT. THEY KNOW IT'S REAL, AND THERE'S A LOT OF MONEY, SO I THINK WE'RE GOING TO HEAR SOME THINGS SOONER RATHER THAN LATER.
IF WE DON'T, I THINK WE NEED TO PLAN FOR THE WORSE. WHAT I'M SEEING IN SOME OF THESE MAWAL OPPORTUNITIES IS WE CAN -- WE CAN DO THAT BUT NOT HAVE TO DOUBLE OUR -- DOUBLE OUR RATES. AND IF IT'S A DEBT THROUGH THE WIFIA PROGRAM OR -- THAT TBD PROCESS IS A LONG PROCESS ANYWAY, AND WE CAN STOP AND JUST NOT DO IT IF THE PROGRAM REQUIREMENTS CHANGE. I LIKE WHAT THEY'VE DONE THEY RECOGNIZE THERE'S SOME THINGS WE JUST DON'T CONTROL. WE'VE GOT TO RESPOND TO THEM ANYWAYS, BUT THERE ARE MULTIPLE OFF-RAMPS THAT WE CAN ACCESS BEFORE WE ACTUALLY ISSUE THE NEW
DEBT. >> I'M JUST -- I DIDN'T WANT US TO COMMIT TO SOMETHING AND THEN CONGRESS COME BACK AND GO, NO, WE'RE NOT GOING TO DO THE PFAS OR THE PFAS NUMBERS ARE GOING TO BE HIGH ENOUGH THAT PHANTOM AND IVIE ARE BELOW THE MCL AND WE DON'T HAVE TO DO THE EXTRA INVESTMENT.
>> YEAH, AND I WILL SAY THIS CLEARLY.
ANY OPPORTUNITY TO MEET A REGULATORY STANDARD AT A FAR LESS COST, WE'RE GOING TO PURSUE THAT WHATEVER THAT STANDARD IS. IF THERE'S A WAY TO DO THIS CHEAPER, WE DEFINITELY WANT TO DO THAT.
BUT THERE COMES A POINT WHERE WE GO THE RULES HAVEN'T CHANGED, SO WE'VE GOT TO PURSUE IT.
THAT'S WHAT I WAS CURIOUS ABOUT WHEN DO WE HIT THAT POINT? IF THE RULES DON'T CHANGE, IS IT CALENDER YEAR '26, FY'
[05:30:06]
26. >> THE TWO EXPANSION PROJECTS IS WHERE THE PFAS WOULD HAPPEN. THAT'S FUNDED BY WATER DEVELOPMENT BOARD AND SOMETHING WE ALREADY BROUGHT TO YOU GUYS TO START THE PROCESS.
IN OUR RATE MODEL THE NORTH EAST EXPANSION IS -- WE HAVE SCHEDULED FOR WIFIA FUNDING, WE'VE ALREADY SENT A LETTER OF THE INTENT TO THEM, BUT WIFIA FUNCTIONS AS A LINE OF CREDIT.
YOU DON'T TAKE DEBT UNTIL YOU SAY WE'RE GOING TO START BUILDING GIVE US THE 10 MILLION OR GIVE US 20 MORE.
WE'VE CHOSEN THAT SPECIFICALLY BECAUSE IT'S GOING TO GIVE US WIGGLE ROOM AS ALL THESE DYNAMIC PIECES ARE HAPPENING. NORTH EAST EXPANSION IS WHERE WE'LL HAVE TO BUILD PFAS IF THE REG STILL MAKES US. AND THAT LOAN SCHEDULING GIVES US THE FLEXIBILITY TO ONLY DRAW THOSE FUNDS AS NEEDED, AND THAT'S EVEN THROUGH THE PROJECT. SO SOMEWHERE IN THAT TIMELINE OF NORTH EAST EXPANSION IS THAT'S OUR DO OR DIE OF ARE WE STILL THERE, OR ARE WE
NOT? >> IS THERE A POSSIBILITY? AND I'M SORRY AND STEPPED OUT SO YOU MAY HAVE COVERED THIS AND I APOLOGIZE.
IS THERE A POSSIBILITY WITHIN THE NEXT YEAR THAT CONGRESS ACTS AND THROWS THIS ALL OUT, AND WE CAN GO BACK TO THE 2019 MASTER PLAN AND JUST CONTINUE DOWN THAT ROAD?
>> I THINK YOUR COSTS ARE ALWAYS HIGHER TODAY THAN THEY WERE BACK WHEN WE ORIGINALLY PLANNED THIS JUST BECAUSE OF INFLATIONARY PRESSURES. YOU'RE GOING TO SEE SOME RATE ADJUSTMENTS, BUT 100% IF CONGRESS SAYS KING'S X, WE'RE NOT DOING THIS --
>> WE CAN DO CROSS TOWN REEVALUATE AND THE TIMELINE EXPANDS, NO DOUBT ABOUT THAT.
HOW FAR IT EXPANDS, THAT'S SOMETHING WE'RE GOING TO HAVE TO LOOK AT.
HOW FAR IT EXPANDS, I THINK THERE WILL BE SOME REGULATIONS FOR PFAS. I DON'T THINK IT'S GOING TO BE THE EPA IS PUSHED OUT THE DOOR.
>> JUST ON THE QUESTION AS FAR AS RATE CHANGES VERSUS FEE FOR IF WE BRING ON A PLANT ONLINE OR TACK THIS ON AS A $5 MONTHLY FEE VERSUS A RATE CHANGE, I CAN ONLY SPEAK FOR MYSELF.
THE FEEDBACK THAT I'M GETTING FROM PEOPLE AND THE FRUSTRATIONS SEEM TO BE MAINLY FOCUSED ON THE FEES OF, HEY, I'M USING THE MINIMUM AMOUNT OF WATER AND YET MY BILL'S STILL INCREASING, AND SO THE FEEDBACK THAT I AM GETTING YOU GUYS MAY HAVE DIFFERENT FEEDBACK HAS BEEN IF WE NEED TO, MY PREFERENCE COULD BE RATE CHANGE VERSUS TACKING ON ANOTHER FEE.
>> COUNCIL CAN DO IT HOWEVER THEY CHOOSE TO.
WHEN I WAS IN WEATHERFORD, ONE OF OUR DROUGHT CONTINGENCIES INCLUDED A PIPELINE AND TREATING THAT WATER. AND WE DIDN'T NEED TO CHARGE FOR IT UNLESS WE WERE USING IT, BUT THERE'S LIKE A 30 CENT PER 1,000 GALLON COST INCREASE TO THAT WHEN WE CLICKED THE POWER SWITCH-ON THOSE PUMPS.
THAT WAS THE DETERMINATION. THE ORDINANCE THAT WAS PASSED WHEN THESE PUMPS ARE ON, WE CHARGE A 30% PREMIUM, AND THAT WAS PART OF THE RATE ORDINANCE AND PART OF SOLVING IT. THOSE MECHANISMS ARE OUT THERE, AND WE CAN DO IT HOWEVER THIS BODY WANTS IT
DONE. >> TO YOUR COMMENT ABOUT THE 2019 MASTER PLAN AND HOW WE CAN CHANGE THAT, IF YOU LOOK ON THE CIP, WE HAVE NEW MASTER PLANS PROPOSED FOR THIS YEAR, AND SO WE'RE -- WE'RE HOPING TO GET AN UPDATED, HEY, THIS IS PROBABLY YOUR BEST PLAN MOVING FORWARD WITH ALL OF THE PFAS REGULATIONS AND PRICE INCREASES. AND WHAT'S INTERESTING ABOUT THAT IS MATT AND I ARE LOOKING AT A DIFFERENT WAY TO DO MASTER PLANS, AND SO THAT WE CAN GET UPDATES ON A MORE REGULAR BASIS.
WE'RE NOT HAVING TO WAIT FIVE YEARS WHEN THINGS CHANGE REALLY QUICKLY ESPECIALLY DURING A PRESIDENCY.
AND SO IF WE CAN SHORTEN THAT RENEWAL TIME WHEN THEY'RE LOOKING AT IT, WE CAN PROVIDE BETTER RESULTS AND BETTER
YOU. >> IF WE HAVE TO -- ASSUMING WE HAVE TO DO THE PFAS STUFF IS THERE ONE OF THE PARTICULAR RATE STRATEGIES COUNCIL WAS IN FAVOR OF ANOTHER ONE? FOR EXAMPLE, IN MY MIND IT COMES DOWN TO TWBD, WIFIA, AND TWBD AND CASH. I THINK THE COSTS WE HAVE TO OVERCOME WE CAN'T DO IT THROUGH CASH ALONE.
IT'S IMPOSSIBLE. BUT OF THOSE TWO, DO Y'ALL HAVE A PARTICULAR PREFERENCE ONE WAY OR THE OTHER?
>> ONE QUESTION ON BETWEEN 3 AND 4, THERE'S THE BIG JUMP AT THE END BETWEEN 2031 OR 34. IT GOES UP FROM 120 TO
[05:35:03]
138 VERSUS ALL THREE OPTIONS FOUR CASH FUNDED.KIND OF LEVELS OFF AND THEN IT DROPS DOWN TO 11%.
WHAT'S THE REASON FOR THAT JUMP RIGHT AT THE END ON OPTION 3?
>> IT'S A GOOD QUESTION. REALLY AFTER I MADE THESE SLIDES I THOUGHT WE SHOULD HAVE INCLUDED THOSE INTERIM YEARS BECAUSE YOU WILL SEE IT MAKES THAT ONE LOOK LIKE A BIG JUMP AND IT MAKES THIS ONE LOOK LIKE A FLAT WHEN IN REALITY LIKE I SAID ON THIS ONE, IN THE MISSING YEARS IT'S THAT STEADY AND THEN I PROVIDED THAT RATE DECREASE TO BE WHAT IT TRULY NEEDED TO BE. THIS ONE YOU'VE GOT A COUPLE OF INTERIM YEARS THAT ARE HIDING IN THERE THAT WOULD ACTUALLY MAKE THAT SLOPE LOOK CONSISTENT IN THE MIDDLE WHAT'S BEFORE
IT. >> BUT OPTION 4 SEEMS MORE STEADY, JUST -- I MEAN, TO ME OPTION 4 AND IF NOTHING ELSE, AT THE END, IT'S CHEAPER. NOT BY MUCH BUT JUST HAVING I THINK A STEADY INCREASE, AND THAT WILL BE MY FEELING IS OPTION 4, WHICH IS A PRETTY STEADY -- STEADY INCREASE EVERY
YEAR. >> I'LL SAY THAT ONE IS MOST SIMILAR TO WHAT WE'VE BEEN DOING. AND COMPARED TO ALL THE THINGS THAT -- FEEDBACK FROM THINGS WE'VE DONE IN THE PAST, IT SEEMS TO HAVE BEEN PRETTY SUCCESSFUL TO HAVE STEADY, PREDICTABLE INCREASES. IT'S LOOKING TO MAXIMIZE CASH TO LOWER PEOPLE'S COSTS AND STILL GET
THINGS DONE. >> IF FOR SOME REASON WE HAD AN INFLUX OF CASH FOR WHATEVER REASON? IF THIS IS PARTIALLY CASH FUNDED, WE CAN PAY INTO THAT AS WELL AND TWEAK THAT.
>> WELL, I GUESS MY -- I DON'T KNOW IF IT'S A COUNTER QUESTION, BUT BLAISE LIKES TO TALK ABOUT OPPORTUNITY COSTS. THAT CASH IF WE'RE NOT PUTTING IT INTO THE PIPELINE AND TWO EXPANSIONS, ARE THERE OTHER PROJECTS WITHIN THE WATER DEPARTMENT THAT ARE BEING KIND OF PUT ON HOLD BECAUSE WE'RE DOING ALL THIS, BUT THEY ALSO NEED ATTENTION THAT WE CAN USE THAT CASH WE CAN GO AND ADDRESS BEFORE IT BECOMES A MORE EXPENSIVE INVESTMENT IN 2034 OR
JEREMIAH WOULD NOT LET ME DO THAT.
I WANTED TO GET THOSE RATES AS LOW AS I COULD BECAUSE THEY WERE CLIMBING. THE CIP WE PUT TOGETHER, WE STUCK TO THE COMMITMENT AND WE WERE GOING TO DO THE MAST PLANS. IT'S BEEN ABOUT 23, 22.
IN TODAY'S DOLLARS WE USED $25 MILLION PER YEAR OF OUR NORMAL CIP YEARS AND THAT DOLLAR FIGURE ACTION GETS ACCUM MALATIVE NUMBER PUT ON IT.
THE THE INTENT IS TO MEET BOTH
OF THOSE. >> THERE'S NOT AN ADVANTAGE -- THERE AREN'T PROJECTS WE'RE SETTING ASIDE TO ADDRESS THESE, SO WE CAN PUT THE CASH TOWARDS THESE ITEMS THAT ARE ON THIS CHART WITHOUT IMPACTING OTHER PLANNED NEEDS.
I KNOW THERE'S ALWAYS UNPLANNED, UNEXPECTED THINGS, BUT THE PLANNED THINGS ARE COVERED EVEN IF WE PUT ALL OUR CASH INTO
WHEN WE BUILT THE FIVE- YEAR MASTER PLAN OR THE CIP, WE LOOKED AT LIKE 25, THOSE ARE OUR HIGHEST PROJECTS. SOME OF THOSE PROJECTS HAVE BEEN ALREADY IN DESIGN, THEY'RE JUST WAITING TO GET FUNDING TO MOVE FORWARD, AND SO WE WANT TO GET THOSE OUT AND OFF OF OUR BOOKS.
ANYTHING THAT'S BEEN DELAYED FOR A LONGER PERIOD OF TIME, WE'RE PUTTING THAT IN THE FRONT.
SO WE'RE WORKING HARD TO MAKE SURE THAT WE'RE STAYING AHEAD OF OUR MAINTENANCE AND PUTTING US IN GOOD POSITION IN THE
FUTURE. >> WELL, I LIKE US PLAYING THINGS WITH CASH AS MUCH AS POSSIBLE, AND IF WE CAN GO BACK TO THE DELAY WHILE WE'RE JUST ACCUMULATING CASH TO PAY INSTEAD OF BORROW, I WOULD -- THAT'S MY PREFERENCE IS TO SEE US DO THAT.
WHENEVER WE DO ADDRESS RATES, I AGREE WITH BLAISE THAT I WOULD RATHER JUST SEE IT BAKED INTO THE RATE WITH REGARD TO THE ROUGH WATER -- ROUGHING WATER FACILITY FROM PK, THAT THAT'S INCORPORATED WITHIN THE RATE AND NOT A SEPARATE FEE THAT'S ON THE BILL, AND NOT ONE MORE THING FOR PEOPLE TO GO WHAT'S THIS FEE NOW.
>> I THINK IT'S IMPORTANT WHEN WE LOOK AT THESE NUMBERS, WE CAN LOOK AT THEM ON THE SCREEN, WE LOOK AT $315 MILLION, AND THOSE ARE BIG NUMBERS. AND FOR SOME PEOPLE IT'S HARD TO REALLY COMPREHEND WHAT THAT MEANS IN REAL LIFE.
AND WHEN WE ACTUALLY PRESENT THE RATE MODEL, WE'RE GOING TO DO TO -- TRY OUR BEST TO SHOW THOSE NUMBERS TO YOU AND TO
[05:40:01]
THE CITIZENS IN A WAY THAT MEANS SOMETHING.JUST VERY QUICKLY, CURRENTLY RIGHT NOW IF YOU LOOK AT THE BILL OF $93 FOR 7,000 GALLONS, THAT'S 1 CENT A GALLON. SO YOU'RE PAYING 1 CENT FOR EVERY GALLON OF WATER YOU USE.
THESE RATE INCREASES, THEY JUMP YOU UP BETWEEN A LITTLE UNDER 2 CENTS A GALLON. SO WHEN YOU LOOK AT IT AS YOU'RE PAYING PER GALLON, WHEN YOU GO TO THE STORE TODAY OR GO TO STARBUCKS AND YOU BUY A LITTLE COFFEE, JUST THINK ABOUT I CAN GET WATER FROM MY TAP FOR A CENT A GALLON OR I CAN GO BUY DASANI, 16 OUNCES FOR A DOLLAR. IT'S ON US, ON THE WATER UTILITY TO SHOW THOSE NUMBERS IN A WAY THAT MEANS SOMETHING, SO YOU CAN REALLY GRASP IT AND UNDERSTAND WHAT WE'RE ASKING.
>> ANY FINAL QUESTIONS FROM COUNCIL? THANK YOU FOR YOUR ATTENTION ON THIS.
I WANT TO SAY A COUPLE OF THINGS, AND RODNEY DOESN'T KNOW I'M ABOUT TO DO THIS. MANY OF YOU DON'T KNOW RODNEY HAS ANNOUNCED HIS RETIREMENT, AND SO IT'S REALLY INCUMBENT ON EVERY LEADER TO MAKE SURE HE HAS A SUCCESSOR IN PLACE. RODNEY HAS, AND WE'RE ABOUT TO GO THROUGH A PROCESS TO IDENTIFY WHO THE NEXT UTILITY DIRECTOR IS, I KNOW THE TWO GENTLEMEN BOTH ARE APPLYING.
I THINK YOU'LL AGREE THAT SOMEWHERE OUT THERE WE HAVE OUR UTILITY DIRECTOR. WE'LL LET THE PROCESS PLAY OUT.
IT'S GOING TO BE COMPETITIVE, AND WE'RE OPENING IT UP TO EVERYBODY BECAUSE THAT'S WHAT WE DO.
BUT WE'VE GOT TWO VERY CAPABLE, INTELLIGENT, PASSIONATE YOUNG MEN I THINK COULD DO THIS JOB.
SO I JUST WANTED TO THANK RODNEY FOR PREPARING THE FIELD THE WAY HE HAS. VERY WELL-DONE, AND THANK YOU FOR YOUR SERVICE, SIR. OKAY, THE NEXT ITEM WE HAVE IS THE LAND DEVELOPMENT CODE. THIS IS AN UPDATE.
THE NEXT ITEM AFTER THIS ALSO IS MORE OF AN UPDATE ON ABILENE HERITAGE SQUARE, AND THE LAST TOPIC WE HAVE THAT DOES REQUIRE SOME FEEDBACK IS I CALL IT ESSENTIALLY A HOMESTEAD EXEMPTION FOR DAY CARE FACILITIES IF THEY MEET CERTAIN PROGRAM REQUIREMENTS.
WE'LL GET INTO THAT. JIM, TIME IS OF THE ESSENCE.
>> HERE'S A QUICK LITTLE UPDATE FOR THE LAND DEVELOPMENT CODE AND THE REWRITE.
THIS SHOWS YOU WHERE WE ARE. FIRST MODULE ONE WAS GOING THROUGH ALL THE DISTRICTS, LAND USES, AND SOME OF THE DEVELOPMENT STANDARDS.
KIND OF LIKE THE BUFFER ZONE, SETBACKS, AND PERVIOUS AREAS AND STUFF LIKE THAT. AS YOU CAN SEE WE ARE HERE. WE JUST FINISHED UP MODULE ONE.
THEY JUST SENT US THE DRAFT BACK TO REVIEW.
THAT HAS BEEN SENT OUT TO THE DEBT COMMITTEE FOR REVIEW, AND WE'RE GOING TO MEET AND DISCUSS MODEL TWO AND MODULE ONE ON FEBRUARY 7TH. AS YOU CAN SEE, WE COMBINED SOME RESIDENTIAL DISTRICTS INTO ONE RS DISTRICT CREATING THE 5,000 SQUARE FOOT LOT, WHICH WAS THE REASON FOR A LOT OF PLANNED DEVELOPMENTS. WE COMBINED SIX COMMERCIAL DISTRICTS INTO THREE, AND THEN WE CONSOLIDATED USES TO REDUCE COMPLEXITY FROM 319 TO 221 AND REBUILD ABI AND HISTORIC ABILENE. THEY'RE NOT REALLY DEVELOPING AS ORIGINALLY INTENDED, AND WITH THE REGULATIONS WITHIN THE LDC YOU'RE PRETTY MUCH GETTING THE SAME RESULT ANYWAY. WE'VE RECONFIGURED IN THE LAST SECTION TO ALLOW SOME FLEXIBILITY AND INCENTIVIZE LOW- WATER PLANTS.
WE'RE STILL WORKING ON THE INCENTIVIZE PART, BUT WE'LL COME BACK WITH AN UPDATE ON THAT.
AND THEN CONSOLIDATE BUFFER YARD REQUIREMENTS TO REDUCE COMPLEXITY, AND THEN STREAM LINE PARKING REQUIREMENTS AND GET SOME -- HERE'S A SAMPLE OF THE CHART WHAT IT'S GOING TO LOOK LIKE. AS YOU CAN SEE WE HAVE ONE AO DISTRICT NOW. WE GOT RID OF THE RR AND COMBINED IT WITH THE AO.
MAKES SENSE. THEN WE'VE GOT THE RS, WHICH THAT INCLUDES THE 5,000 SQUARE FOOT LOT. AND THEN WE HAVE THE -- WE FELT IT WAS IMPORTANT TO KEEP MD AND MANUFACTURED HOME AND MULTIFAMILY SEPARATE BECAUSE THOSE ARE KIND OF UNIQUE CASES. AND THEN YOU'LL SEE THAT WE HAVE A NEW RURAL COMMERCIAL, LIGHT
[05:45:02]
COMMERCIAL, AND GENERAL COMMERCIAL DISTRICTS.THE RURAL -- I MEAN THE RESIDENTIAL COMMERCIAL COMBINE THE NEIGHBORHOOD RETAIL, NEIGHBORHOOD OFFICE, AND OFFICE TOGETHER INTO ONE, SINCE THEY'RE ALL VERY SIMILAR IN USES. AND THEN THEY'LL ALL HAVE THAT SAME 6 TO 11 WORKING HOURS, WHICH IS -- WHICH IS VERY COMMON FOR THAT TYPE OF USES. LIGHT COMMERCIAL IS KIND OF A BUFFER BETWEEN THE TWO, AND THEN WE KEPT LIGHT -- LIGHT INDUSTRIAL AND HEAVY INDUSTRIAL SEPARATE BECAUSE THOSE ARE TWO UNIQUE DISTRICTS.
AND THEN CB, MIXED USE, AND COLLEGE UNIVERSITY PRETTY MUCH STAYED THE SAME. TO END THE COMMITTEE IS GETTING STARTED ON THE MODULE NUMBER TWO. I PERSONALLY WOULD HAVE STARTED JUST NOW BEING ABLE TO HAVE A CHANCE TO LOOK AT IT, BUT WE ARE GOING TO MEET WITH THE TECH COMMITTEE NEXT WEEK. THE TECH COMMITTEE HAS DONE A FANTASTIC JOB WITH THE CONVERSATION BACK AND FORTH, AND WERE ABLE TO COME UP WITH A COMMON GROUND OF WHERE WE WOULD LIKE TO SEE THE LAND DEVELOPMENT CODE TO BE.
AND I'D BE HAPPY TO ANSWER ANY
QUESTIONS. >> TIM, I JUST -- I JUST WANT TO THANK YOU AND EVERYBODY THAT'S WORKED ON THIS.
I KNOW IT'S BEEN A LONG TIME, AND WE'VE REALLY BEEN ASKING FOR IT FOR A WHILE, BUT I UNDERSTAND IT'S IMPORTANT TO GET IT RIGHT, TOO, AND I DO APPRECIATE Y'ALL'S DEDICATION. QUESTIONS OR COMMENTS FOR
TIM? >> I DON'T HAVE A QUESTION. JUST HAVE A REQUEST. THIS IS GOING TO BE A LONGER READ, AND SO I WOULD APPRECIATE IT GETTING IT SOONER THAN JUST THE FRIDAY BEFORE THE MEETING THAT WE'RE HAVING IT ON THE FIRST READING.
ONCE WE GET TO THAT POINT WHERE IT'S PRETTY WELL-SET, IF WE COULD GET THAT EARLY DRAFT, I WOULD APPRECIATE
THAT. >> GIVE US TO US NOW SO WE CAN READ IT IN 2025, LATE 2025, YOU KNOW, SIX MONTHS FROM
NOW. >> DO YOU ANTICIPATE DOING A SCRUB? ONCE WE APPROVE THE NEW ONE, ARE YOU GOING TO GO BACK AND REZONE EVERY LOT?
>> THERE WILL BE SOME NOTIFICATIONS SENT OUT.
BY LAW WE'RE REQUIRED TO DO THAT, IF THAT'S GOING TO AFFECT THEIR USE. OF COURSE THEY'LL STILL BE GRANDFATHERED IN, BUT THEN WE'LL UPDATE THE MAP WITH THE DISTRICTS LABELS, PER SE, AND THEN WE'LL ALSO IDENTIFY THE PROPERTY OWNERS OF THAT LABEL.
>> AND AS PART OF THAT THIS IS REALLY WHY I'M ASKING ARE WE GOING TO ELIMINATE PLANNED DEVELOPMENT, OR ARE WE --
>> YOU NEVER REALLY ELIMINATE IT, BUT YOU SHOULD SEE A LOT LESS OF THEM IS THE THE INTENT
HERE. >> WELL, I JUST WANT TO SAY THANKS. THIS HAS BEEN AN ISSUE THAT'S BEEN SIMPLIFYING THE LAND DEVELOPMENT CODE HAS BEEN AN ISSUE FOR A LONG TIME. PEOPLE THAT WANT TO BUILD HOMES AND BUILD BUSINESSES CAN'T INTERPRET IT VERY WELL BECAUSE IT'S VERY COMPLEX. AND I REALLY THINK THIS WILL HELP FACILITATE GROWTH.
>> I THINK WHEN YOU'LL SEE IT, IT'S SIMPLIFIED. WE'RE GOING TO HAVE A LOT MORE ILLUSTRATIONS IN THERE TO HELP EXPLAIN WHAT THAT SECTION MEANS --
>> DID HE JUST TELL ME HE'S GOING TO PUT PICTURES IN THE
BOOK? >> THAT'S EXACTLY WHAT HE
UP BOOK. >> THE WAY THE SCHEDULE'S GOING, IF YOU LOOK AT THE SCHEDULE THAT WAS PROVIDED, WE'RE PROBABLY GOING TO PROVIDE PROBABLY 2 OR 3 MONTHS PAST THE DATE THAT'S ON THIS CHART. JUST BECAUSE IT'S HARD TO GET -- THEY DO TEND TO DRAG OUT 2 OR 3, 4- HOUR MEETINGS DISCUSSING THESE SECTIONS. BUT I STILL FEEL FURTHER CONFIDENT IT'LL BE DONE AT THE END OF THIS
YEAR. >> AND I AGREE WITH COUNCILMAN PRICE, JUST A LITTLE BIT MORE INTENSE AFTER THE READ BECAUSE PLACE ONE AND TWO WILL WANT TO READ THIS THOROUGHLY.
>> THE NEXT SLIDE FOR US IS THE ABILENE HERITAGE SQUARE.
JULIE LAWLER, THEY'VE BEEN ATTENDING THE STAFF MEETINGS OF THIS.
WHAT WE HAVE IS THE UPDATE OF THIS PROJECT. I'LL GOING TO ASK JULIE TO COME UP AND HELP ME THROUGH THIS JUST BECAUSE SHE'S GOING TO BE THE MOST KNOWLEDGEABLE PERSON ON KIND OF WHERE THEY ARE, AND OBVIOUSLY IT'S GOING TO BE YOU THAT'S IN
THERE. >> MOST KNOWLEDGEABLE, I APPRECIATE THAT.
>> GOOD AFTERNOON. I PROTSOME PICTURES WITH ME.
THIS IS KIND OF FUN. THIS FIRST PICTURE IS ABILENE HIGH SCHOOL IN 1924 SHOWING THE EXTERIOR MAIN ENTRANCE TO THAT BUILDING FACING NORTH. AND THIS IS THE RENDERING OF THE NEW LIBRARY ENTRANCE OF ABILENE HERITAGE SQUARE, AND
[05:50:01]
THAT'S GOING TO BE ON THE WEST SIDE OF THE BUILDING. WE'RE REALLY PLEASED HOW THIS DESIGN TURNED OUT. IT WAS AFTER A LOT OF DIFFERENT DESIGNS CAME FORWARD, SO WE'RE REALLY EXCITED ABOUT THIS DESIGN BECAUSE IT HONORS THE HISTORY OF THE BUILDING WITHOUT TRYING TO MIMIC IT. I THINK IT FLOWS REALLY WELL TOGETHER. THIS IS A RENDERING THAT'S NOT COMPLETE, BUT TIMT GIVE YOU AN IDEA OF THE LIBRARY FIRST FLOOR THAT'S IN GRAND STAIRCASE. SO ON THE FIRST FLOOR THERE'S GOING TO BE A GRAND STAIRCASE KIND OF CIRCULATION DESK AND THERE WILL BE AN ATRIUM THAT GOES THROUGH THE SECOND AND THIRD FLOORS OF THE BUILDING, AND THERE WILL BE A GLASS BLOWN SCULPTURE ATTACHED TO THE CEILING OF THE ATRIUM AND EXTEND DOWN TO THE FIRST FLOOR. AND IT'LL HAVE COLORS AND JUST BE BOULE. JUST A REMINDER ABOUT WHAT IS GOING TO BE IN THIS LIBRARY, FIRST HAS ADULT FICTION, GENOLOGY, AND TEEN SPACE, RESERVABLE SMALL MEETING ROOMS AND MULTIPURPOSE ROOM. THE ENTIRE FLOOR FLOOR WILL BE RESERVED FOR THE USE OF PARENTS AND THEIR CHILDREN.ON THIS FLOOR WE'LL HAVE MATERIAL COLLECTIONS FOR BABIES THROUGH ELEMENTARY AGE.
WE'LL ALSO HAVE FUN, CREATIVE SPACES FOR CHILDRENS PROGRAMMING. UP ON THE THIRD FLOOR WE'RE GOING TO HAVE THE ADULT NONFICTION COLLECTION AND MORE RESERVABLE SMALL MEETING ROOMS. WE'RE VERY EXCITED FOR THIS NEW SPACE. IT'S ABOUT 68,000 SQUARE FEET OF LIBRARY SPACE, WHICH IS AROUND 26,000 SQUARE FEET LARGER THAN THE CURRENT BUILDING ON 2ND AND CEDAR. WE CURRENTLY HAVE TWO SERVICE POINTS IN THE LIBRARY AND HAVE TWO ACTIVE PUBLIC FLOORS THAT ARE STAFFED, AND THIS BUILDING WILL HAVE STAFF ON ALL THREE FLOORS AND FOUR SERVICE POINTS. SO HERE'S AN UPDATE ON CONSTRUCTION. THIS IS FROM LAST WEEK, AND YOU CAN SEE THEY ARE STARTING ON THE FOUNDATION OF THE BUILDING WHERE THE NEW LIBRARY CONSTRUCTION WILL GO.
AND THEY ACTUALLY WORKED ON THE FOUNDATION THIS WEEK.
I JUST DON'T HAVE AN UPDATED PICTURE YET.
JUST SOME DATES TO KEEP IN MIND, RIGHT NOW THE SUBSTANTIAL COMPLETION DATE IS MARCH 13, 2026.
OWNER MOVE IN IS MARCH 16TH, AND GRAND OPENING, APRIL 24, 2026. ANY QUESTIONS? ALL RIGHT.
>> THANK YOU, JULIE. WE WILL BE TOUCHING THIS TOPIC AGAIN LIKELY ON THE 13TH. THIS MEETING ON THE 27TH, AND WHAT WE'LL BE TOUCHING IS WITH THE DISCUSSIONS WE'VE HAD AND THE COMMITMENTS WE'VE MADE, WE NEED TO HAVE AN AGREEMENT THAT INCAPSULATES THAT. THE $900,000 THAT WAS PART OF THE PREVIOUS CONCEPT FOR THIS, THAT WAS ROOF INSURANCE PAYMENTS THAT WERE RECEIVED TO THIS FACILITY, WE NEED TO INCORPORATE THOSE NEW DOLLAR AMOUNTS INTO THE AGREEMENT, AND WE NEED TO RECOGNIZE THE LIBRARY IS BIGGER THAN WHAT WE ORIGINALLY PLANNED FOR. IT'S WITHIN -- WELL, I SAY THAT. IT'S WITHIN THE 250 FEET OF WHAT THE TARGET WAS. WE NEED TO RECOGNIZE THAT IN LEASE AGREEMENT. WE NEED TO TALK ABOUT THE LEASE RATES, THOSE SORTS OF THINGS. SO THIS WILL COME BACK TO COUNCIL TO ADOPT A NEW AGREEMENT -- ECONOMIC DEVELOPMENT AGREEMENT AND LEASE AGREEMENT TO -- SO Y'ALL CAN FORMALLY ADOPT THE THINGS WE TALKED ABOUT IN THE PAST IN DIFFERENT -- DIFFERENT MEETINGS.
I THINK THESE TIMELINES ARE DO- ABLE, OTHERWISE WE WOULDN'T BE PRESENTING TODAY. BUT IT IS A CONSTRUCTION PROJECT, SO I WOULDN'T -- I MEAN IF YOU WANT TO MARK YOUR CALENDER FOR MARCH 16TH, DO IT.
BUT IF IT MOVES A WEEK OR TWO, MAYBE A MONTH, THAT ALSO WOULDN'T BE UNUSUAL. SO JUST FOR THAT.
OKAY, SO THIS NEXT ITEM IS THIS DAY CARE QUESTION.
AND SO A CITIZEN HAS E- MAILED COUNCIL AND I'VE RESPONDED AND HAVE TRIED TO KEEP THEM ABREAST OF WHERE WE WERE ON THIS PARTICULAR TOPIC.
THIS IS 100% A POLICY DECISION ON THE COUNCIL'S PART. BUT SENATE BILL 1145 LAST LEGISLATIVE SESSION AUTHORIZED TAX RESTRICTIONS. SO TO BE ELIGIBLE YOU HAVE TO MEET CERTAIN REQUIREMENTS IN THE LEGISLATION.
ONE OF THAT WOULD BE THE TEXAS WORKFORCE COMMISSION'S RISING STAR PROGRAM AND THE VOLUNTARY OPPORTUNITY.
THE MAP HERE SHOWS POTENTIAL ELIGIBLE CENTERS IN ABILENE, OKAY?
[05:55:01]
NOW, THE TWC'S WEBSITE DOESN'T DIFFERENTIATE BETWEEN NON- PROFIT DAY CARE CENTERS AND FOR-PROFIT DAY CARE CENTERS. AND SO SOME OF THESE BUBBLES, SEVERAL OF THEM ARE NON-PROFIT.THEY'RE ALREADY NOT PAYING PROPERTY TAXES.
SO I DO NOT KNOW BECAUSE I DID NOT HAVE THE TIME TO DETERMINE WHAT THE ACTUAL DOLLAR IMPACT WOULD BE TO THE CITY OF ABILENE ON A TAX REVENUE STANDPOINT. THERE WILL BE ONE, BUT IT'S NOT GOING TO BE SOMETHING THAT'S GOING TO BE TO THE POINT WHERE WE'RE NO LONGER ABLE TO FUND POLICE OR FIRE, RIGHT? SENATOR WEST OUT OF DALLAS WAS ONE OF THE BILL SPONSORS ON THIS -- MAYBE THE BILL AUTHOR. HE PUSHED VERY HARD FOR IT.
THIS IS A PROACTIVE WAY AND MEANINGFUL WAY TO ATTEMPT TO ADDRESS THE DAY CARE SHORTAGE IN OUR COMMUNITY BY PROVIDING THOSE BUSINESSES THAT PROVIDE THIS AND MEET THOSE PROGRAM REQUIREMENTS AND OPPORTUNITY TO REDUCE THEIR TAX LIABILITY. THEY CAN EITHER THEN TAKE THAT MONEY AND REINVEST IT INTO THEIR BUSINESS, THEY CAN REINVEST IT INTO THE PAYROLL OF THEIR EMPLOYEES SO THEY CAN ATTRACT AND RETAIN WORKERS, WHICH IS A PROBLEM OF BEING ABLE TO FIND AND EMPLOY DAY CARE WORKERS.
AND SO THE QUESTION BEFORE COUNCIL REALLY IS THIS AN OPPORTUNITY YOU WANT TO PURSUE? IT CAN BE DONE THROUGH ORDINANCE.
AND IF WE DO THAT, I'D LIKE TO MAKE SURE WE BUILD IT INTO OUR REVENUE MODELS FOR FY '26. IF IT'S NOT, WHERE JUST NEED TO KNOW WE DON'T NEED TO BE PURSUING THIS OPPORTUNITY. I'M REALLY INDIFFERENT ONE WAY OR THE OTHER. I THINK IT DOES HELP SOLVE A PROBLEM. DOES IT CREATE A COMPETITIVE ADVANTAGE FOR A GROUP OF BUSINESSES THAT MAY WANT SOMETHING SIMILAR, PROBABLY. BUT WE'RE LOOKING AT A LARGER SOCIAL PROBLEM WITH -- WITH DICARE, THE COST OF DAY CARE AND HOW YOU PROVIDE IT IN A COMMUNITY.
SO ANY QUESTIONS ON THIS PARTICULAR ITEM OR
DIRECTION? >> WELL, IN THE DOCUMENTATION THAT WAS PROVIDED, YOU SAID -- NOT YOU, BUT IT STATES THAT THEY HAVE TO HAVE 20% CCS ENROLLMENT, AND ONE OF THE THINGS THAT'S NOT CLEAR IS WHEN IS THAT MEASURED. BUT IF WE ADOPT THIS, WHO IS MEASURING THAT? BECAUSE IT SPECIFICALLY SAYS THE TAX APPRAISAL DISTRICT IS NOT KEEPING UP WITH THAT, AND THE TEXAS WORKFORCE COMMISSION IS NOT KEEPING UP WITH THAT.
SO ARE WE HAVING TO HAVE STAFF
CALL UP WHERE ARE YOU -- >> THERE WILL HAVE TO BE A COMPLIANCE ASPECT TO THIS. SO TWC IS NOT DOING IT, AND THE APPRAISAL DISTRICT ISN'T DOING IT. THERE WILL HAVE TO BE SOME COOPERATION BETWEEN THE CITY AND APPRAISAL DISTRICT. MY UNDERSTANDING A COUPLE OF DISTRICTS HAVE ALREADY DONE IT, AND WE CAN LOOK TO THEM FOR MODELS HOW THEY'VE DONE IT. THEY'RE MUCH LARGER THAN WE ARE.
>> JUST FOR ME, I ALWAYS -- I DON'T KNOW -- RELUCTANT TO START GIVING TAX EXEMPTIONS BECAUSE EVERY TAX EXEMPTION YOU GIVE MEANS EVERYONE ELSE HAS TO PAY TO OFFSET WHAT YOU'RE LOSING FROM THAT ONE. AND THERE'S -- THERE'S ALL KINDS OF CAVEATS OF, WELL, IF YOU DO THIS, THEN YOU CAN'T DO THAT. THEN YOU CAN ONLY DO THIS IF YOU DO THAT. AND THERE'S THIS 20% REQUIREMENT. I MEAN -- I DON'T KNOW HOW MUCH IT'S GOING TO COST US FROM THE PERSPECTIVE OF MANAGING THE LIST AND KEEPING THAT UPDATED WITH THE APPRAISAL DISTRICT FOR PROPERLY COLLECTING OR NOT TAXES.
SO FOR ME PERSONALLY, I'M NOT -- I DON'T SEE MYSELF GETTING EXCITED ABOUT VOTING FOR THIS.
>> THE OTHER ASPECT THAT I THINK IS WORTH DISCUSSING IS THATTHAT WE TALK ABOUT THE COMMUNITY SUPPORT FOR DIAS ONE OF THEIR FIVE TO THRIVE INITIATIVES IS CHILD CARE AND THE AVAILABILITY OF CHILD CARE AND WHAT IS THE COMMUNITY DOING TO MAKE THAT AVAILABLE? AND THIS IS NOT DIRECTLY DOING THAT, BUT INDIRECTLY YOU COULD BE ENCOURAGING THE FEASIBILITY AND FINANCIAL PROFITABILITY OF SOME OF THESE IF IT'S -- UNLESS IT'S A NON- PROFIT, BUT -- SO I THINK THAT FROM A SUPPORT FOR THE BASE ASPECT, THAT'S A COMPONENT THAT'S WORTH TALKING ABOUT. I'M KIND OF WITH YOU.
I DON'T LOVE PICKING CERTAIN INDUSTRIES TO SAY, HEY, YOU KNOW, WE'RE GOING TO GIVE YOU TAX BREAKS BECAUSE THEN SOMEBODY ELSE WILL SAY, WELL, WE'RE ALSO A WORTHY ACTIVITY AND WE WANT THIS ALSO.
AND IT CAN GET OUT OF HAND. I THINK ON THE FACE OF IT THIS IS LIMITED ENOUGH I THINK THAT READING IT, IT SPECIFICALLY
[06:00:02]
DOES NOT ALLOW HOME- BASED CHILD CARE, SO IT HAS TO BE A BUSINESSLOCATION. >> YOU THINK THAT'S IMPORTANT, BUT YOU GIVE UP YOUR HOMESTEAD
OKAY. >> SO IT'S AN EITHER/OR.
>> THIS WOULD BE A LARGER EXEMPTION THAN YOUR HOMESTEAD EXEMPTION.
>> IT WOULD, BUT IT ONLY COUNTS THE SQUARE FOOTAGE BEING USED. THERE'S SOMETHING IN THERE.
I THINK IT IS NARROWLY FOCUSED ENOUGH THAT I COULD SUPPORT IT MOSTLY -- I MEAN CERTAINLY WE WANT TO ENCOURAGE CHILD CARE AND THE JOBS THAT GO WITH THAT AND THE AVAILABILITY OF THAT FOR PEOPLE WHO WANT THEIR KIDS TO BE WATCHED, BUT ALSO FROM SUPPORT FOR THE BASE, I THINK THAT ASPECT IS IMPORTANT,
TOO. >> I DON'T THINK THAT WE'RE PICKING OR CHOOSING. I MEAN THIS WAS A LAW THAT WAS PASSED BY THE STATE. WE'RE JUST -- IF SOMEONE COMES TO US AND SAYS HOW COME MY BUSINESS CAN'T, GET THE STATE TO TAKE CARE OF IT, AND WE CAN DO THAT.
I WOULDN'T -- THE 50%, I MEAN I THINK THAT'S A GOOD PLACE TO START BECAUSE, AGAIN -- LET ME BACK UP AND SAY THIS. IF WE START THIS PROGRAM, CAN WE THEN STOP THIS PROGRAM?
>> YOU CAN REPEAL AN ORDINANCE.
IT'S A LOCAL ORDINANCE. >> I MEAN IF WE GIVE A 50% TAX BREAK AND FIND OUT IT'S COSTING AN EXORBITANT PERCENTAGE WISE AMOUNT OF MONEY TO CHECK ON -- WELL, OR JUST COST US MONEY TO BE THE ONES AS SHANE WAS MENTIONING, WE'VE GOT TO CHECK ON THE CCS STATUS.
AND IF IT BECOMES TOO BOGGED DOWN FOR US --
>> IT CAN BE REPEALED TO MY UNDERSTANDING.
IT'S AN ORDINANCE. AND BY THE TIME THIS WOULD COME FORWARD AND BE ADOPTED, WE WOULD RUN THE TRAPS OF SOME OF THESE QUESTIONS. WE VISITED THE LARGER CITIES IN TEXAS THAT HAVE ALREADY ADOPTED THIS TO GET THEIR UNDERSTANDING OF THEIR ROLLOUT, HOW DOES IT WORK, WHAT QUESTIONS, SO WE CAN LEARN FROM THEIR MISTAKES OR THEIR SUCCESSES, AS THE CASE MAY BE.
AND WE'D HAVE A MUCH BETTER UNDERSTANDING.
AND PART OF THAT ANALYSIS STAFF WILL CERTAINLY DETERMINE, OKAY, WHAT IS OUR ACTUAL COST FOR OFFERING THIS? HOW MUCH LESS REVENUE ARE WE COLLECTING, AND WHAT'S THE REAL IMPACT ON THAT TO
OPERATIONS? >> WELL, LIKE BRIAN SAID, THE PROFITABILITY OF THE BUSINESS.
I MEAN, IF THIS IS INTENDED TO PROVIDE MORE AFFORDABLE DAY CARE TO THOSE PEOPLE THAT NEED THAT, THAT'S ONE WAY TO LOOK AT IT. BUT IF WE'RE LOOKING AT PROFITABILITY TO THOSE PROVIDING DAY CARE, THEN IT'S NOT REALLY DOING THE PURPOSE IT'S SUPPOSED TO.
AND IF IT'S COSTING US MONEY THROUGH STAFF OR ANYTHING ELSE, I THINK THAT WE NEED TO PROBABLY LOOK FURTHER INTO THIS. LIKE YOU SAID THERE'S MORE QUESTIONS AND LOOK AT OTHER CITIES WHO ARE DOING IT, BUT I DON'T LIKE GIVING A TAX BREAK TO SOMEBODY JUST TO MAKE IT MORE PROFITABLE FOR THE
BUSINESS. >> AND I DON'T KNOW -- I DON'T BELIEVE THERE'S A REQUIREMENT THAT IT'S JUST A REDUCTION. HOW THEY TAKE THAT NEWFOUND MONEY IS I THINK UP TO THEM.
>> I'M LOOKING AT IT BUT I'M NOT FOR IT AT
THIS TIME. >> IT'S TOUGH IF WE'RE LOOKING AT A $25 MILLION HIT TO THE CITY, IF WE'RE LOOKING AT A HALF MILLION DOLLAR HIT.
THAT'S OBVIOUSLY A HUGE FACTOR. THERE IS A HUGE NEED FOR MORE DAY CARE IN ABILENE, AND WHAT I WOULD SUGGEST MAYBE INSTEAD OF JUST LOOKING AT THIS AND COMING BACK, OKAY, DOES THE COUNCIL WANT TO APPROVE OR NOT, I WOULD SAY IF POSSIBLE WE LOOK AT WHAT ELSE CAN THE CITY -- AND THIS BE ONE OPTION. WHAT ELSE CAN THE CITY DO? HEY, WE CAN GIVE 100,000 TO THE SMALL BUSINESS DEVELOPMENT CENTER TARGETED FOR, YOU KNOW, INCREASING DAY CARE CENTERS OR SOMETHING, YOU KNOW, AND LOOKING AT OTHER OPTIONS AND GOING HERE ARE THE FOUR OR FIVE OPTIONS POTENTIALLY IF WE WANT TO INCREASE DAY CARES IN ABILENE. INCLUDING THIS BUT ALSO ONE, TWO OTHER OPTIONS THAT WE FOUND AND LET'S MAXIMIZE THE DOLLARS.
I HAVEN'T HEARD FROM ANY DAY CARE OWNERS SAYING HEY -- OR POTENTIAL OWNERS SAYING, HEY, IT'S THE PROPERTY TAXES THAT ARE PREVENTING ME FROM OPENING A DAY CARE. NOW, EVERY LITTLE BIT HELPS, BUT KIND OF WITH SHANE ON THIS. YOU KNOW, SOMEONE ENDS UP PICKING THAT TAB UP. I DON'T KNOW IF THIS IS THE BEST, EFFECTIVE WAY. I WOULD LIKE TO ENCOURAGE MORE DAY CARES IN ABILENE. MY DIRECTION WOULD BE LET'S LOOK AT ALL THE OPTIONS AND MAYBE COME BACK WITH SOMETHING.
IS THIS THE MOST EFFECTIVE, ALL RIGHT, WE CAN CONSIDER IT, BUT MAYBE THERE'S SOMETHING BETTER OUT
THERE. >> I'M NOT GOING TO BELABOR THE POINT. IT CREATES MORE QUESTIONS THAN ANSWERS FOR ME. THERE'S ECONOMIC DEVELOPMENT CONCERNS WITH GOOD CHILD CARE AND THE ABILITY FOR PEOPLE TO WORK AND DIAS AND ALL THOSE COMPONENTS, I UNDERSTAND ALL THAT. I SHARE SOME OF THE MAYOR'S CONCERN WE'RE
[06:05:05]
INCENTIVIZING PROFITABILITY VERSUS LOWERING THE COST OF CHILD CARE. AT THE SAME TIME IF YOU INCENTIVIZE PROFITABILITY, DO PEOPLE START OPENING DAY CARES? IT'S HARD TO KNOW SOME OF THOSE ANSWERS WITHOUT KNOWING WHAT THE ACTUAL FISCAL IMPACT WILL BE ON REVENUE REDUCTION.WE JUST SPENT THE ENTIRE DAY TALKING ABOUT ALL THESE NEEDS, AND WE'RE ENDING IT WITH -- I DON'T THINK IT'S GOING TO BE A BIG REVENUE REDUCTION, RIGHT? I'M NOT UNDER ANY ILLUSION THERE.
I'D LIKE TO SEE MORE INFORMATION.
>> SO WHAT I HEAR COUNCIL SAYINGSAYING SKEPTICAL.
THEY NEED MORE INFORMATION TO BE ABLE TO HAVE A DECISION, IS THAT CORRECT?
>> ESPECIALLY ON THE REGULATORY AND ACCOUNTABILITY SIDE, THAT CONCERNS ME AS MUCH AS ANYTHING.
WHO'S GOING TO DO THE FOLLOW UP TO FIND -- IF WE'VE GOT OO HIRE SOMEBODY TO GO AROUND.
>> AGAIN, WE'RE TALKING ABOUT IT BECAUSE THE PERSON WHO WAS E- MAILING ME HAD A SENSE OF URGENCY ABOUT THEIR QUESTIONING. I CAN'T TELL THEM, YES, WE'RE GOING TO DO IT OR NOT DO IT.
IT'S COMPLETELY OUTSIDE OF MY SCOPE.
AND WHAT I'VE HEARD FROM THE COUNCIL AND I CAN RELAY TO THE PERSON NEXT TIME THEY E- MAIL ME IS THEY'RE INTERESTED IN LEARNING MORE ABOUT IT BUT THEY DO HAVE SOME CONCERNS.
>> THAT IS -- THAT CONCLUDES OUR WORK TODAY.
Y'ALL HAVE PROVIDED ME THE DIRECTION I NEEDED, THE ORGANIZATION OF THE DIRECTION I'VE NEEDED. YOU'VE BEEN VERY THOUGHTFUL AND DILIGENT AND ATTENTIVE, AND I REALLY APPRECIATE THAT BECAUSE WE WENT THROUGH A MOUNTAIN OF INFORMATION. THANK YOU FOR YOUR
TIME. >> DOES ANYBODY ELSE NEED ANOTHER $60 MILLION FOR
BALLOTS. >> I WOULD LIKE TO REMIND EVERYONE NEXT TUESDAY THE 4TH 3:00 IT'S THE MAURY SHOW THE STATE OF THE THIT SEY, AND WE WELCOME YOU ALL TO COME TO THAT EVENT, AND WE'RE GOING TO ILIGHT SOME THINGS HAPPENING IN OUR CITY.
>> I HAD A QUESTION, AND STANLEY, YOU CAN TELL ME IF THIS IS INAPPROPRIATE.
WE TALKED ABOUT THE BUDGET OF EVERYTHING AND THE POTENTIAL OF HAVING A MAY BALLOT ISSUE FOR A BOND ISSUE. IS THAT -- SHOULD WE HAVE ANY OTHER DISCUSSION ABOUT BONDS AT OUR NEXT MEETING SINCE THAT'S THE CUT OFF FOR DOING ANYTHING?
>> I DIDN'T KNOW IF STREETS OR WHATEVER BUT WHAT'S APPROPRIATE OR NOT. AND MAYOR, YOU CAN TALK WITH THE CITY MANAGER AND DECIDE IF YOU WANT TO HAVE A DISCUSSION OR NOT OR HAVE THE POTENTIAL ITEM --
>> THE ONLY BOND ELECTION STAFF WOULD BE WHAT WE DISCUSSED TODAY. THAT WOULD BE THE ITEMS WE DISCUSSED. I KNOW MAX WOULD LOVE TO HAVE A STREET MAINTENANCE BOND OUT THERE, BUT IT'S NOT SOMETHING THAT WE'VE
I JUST WANTED TO ASK THE QUESTION SINCE WE HAD THE WORKSHOP AND THE, AND THAT WAS AN ITEM OF DISCUSSION.
>> ANYTHING ELSE? IT IS NOW 3:31 P.M. , AND THIS MEETING OF THE ABILENE CITY COUNCIL IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.