[13. Ordinance (Final Reading) CUP-2026-08: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on a Request from The Owner, To Apply a Conditional Use Permit to Approximately 1.49 Acres Zoned General Commercial (GC) To Allow for Contractor Services. Located At 411 East South 11th Street. (Tim Littlejohn)]

>> OH, YES,S MOTION CARRIES. >> 11.13.

DIRECTOR OF PLANNING AND DEVELOPMENT TO PRESENT THIS

ITEM. >> THANK YOU MAYOR, COUNCIL

[00:35:02]

AFTER CONSIDERATION THE CONDITIONAL PERMIT 206-208 APPLICANT IS MR. GAMBLE OWNER IS OVERHEAD DOOR COMPANY OF ABILENE. THE REQUEST FOR YOU TO CONSIDER IS TO ISSUE A CONDITIONAL USE PERMIT TO ALLOW CONTRACTOR SERVICES WITHIN COMMERCIAL GENERAL COMMERCIAL ZONING LOCATED AT 411 EAST SOUTH 11TH STREET.

THERE WE GO. SORRY ABOUT THAT.

HERE'S THE LOCATION MAP. HERE IS THE CURRENT ZONING MAP.

HERE THEY'RE LIABLE USES WITHIN GENERAL COMMERCIAL AND CONTRACTOR SERVICES DOES REQUIRE CONDITIONAL USE PERMIT HEAR, HEAR ARE PROPERTY VIEWS. HERE IS THE PLAN OF OPERATION STATING THEIR HOURS WOULD BE FROM 8:00 A.M.-5:00 P.M. MONDAY THROUGH FRIDAY. NOTIFICATIONS -- WE DID RECEIVE ONE IN FAVOR. THIS MEETS ALL THE CRITERIA FOR APPROVAL WITHIN THE LAND OF THE LIMIT CODE FOR THIS CASE, I DO RECOMMEND YOU APPROVAL SUBJECT TO THE PLAN OF OPERATION I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.

>> IS THE PROPONENT HERE? >> I DO NOT SEE THEM.

>> MY ONLY CONCERN WAS OUR LOCAL OPERATIONS SEEMS KIND OF LIMITING IF THAT'S WHAT THEY ARE HAPPY WITH.

>> THAT IS WHAT THEY REQUESTED THEMSELVES.

>> THANK YOU. >> AT THIS TIME I WILL OPEN UP THE PUBLIC PERIOD. IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR ITEM 13 FOR THE RECORD? SEEING NONE, I WILL CLOSE THE PUBLIC PERIOD ANY FURTHER QUESTIONS FROM COUNCIL? IF NOT I WILL ACCEPT A MOTION IN A SECOND A MOTION BY COUNCILMAN PRICE SECOND BY COUNCILMAN BAILEY. ANY FURTHER DISCUSSION?

[14. Ordinance (Final Reading) Z-2026-28: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on a Request from the Owner to Change the Zoning of Approximately 0.36 Acres from Residential Single-Family (RS-6) to General Commercial (GC) Zoning. Located at 1358, 1366, and 1374 Barrow Street. (Tim Littlejohn)]

WE WILL VOTE. >> OH, YES,S.

MOTION CARRIES. >> MOVE TO ITEM 14 AND

PRESENTING THIS ITEM. >> THANK YOU MAYOR FOR CONSIDERATION IN ZONING CASE 20-28.

THE OWNER IS MISS HANGMAN FRANCIS WOW TERRY AND RANDY HOBBS, AGENT IS DECADURO. REQUEST TO CHANGE THE ZONING IS .368 FROM RESIDENTIAL RS62A GENERAL COMMERCIAL LOCATED AT 1358, 1366, AND 1374-BARREL STREET.

HERE IS THE LOCATION MAP. HERE IS THE CURRENT ZONING.

THE PROPERTY VIEWS. THE NEIGHBORING VIEWS.

HERE ARE THE CURRENT ALLOWABLE USES WITHIN THE RS DISTRICT.

HERE ARE THE ALLOWABLE USES OF THE REQUESTED GENERAL COMMERCIAL. NOTIFICATIONS, WE DID RECEIVE EIGHT IN FAVOR AND ZERO IN OPPOSITION.

THIS MEETS ALL THE CRITERIA FOR APPROVAL WITHIN THE LAND DEVELOPMENT CODE. THEY HEAR THIS CASE AND RECOMMEND TO YOU APPROVAL THIS MORNING I WOULD BE HAPPY TO

ANSWER ANY QUESTIONS. >> QUESTIONS.

>> THANK YOU. AT THIS TIME WE'LL OPEN UP THE PUBLIC PERIOD. IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 14? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD. SEEING NONE, I WILL CLOSE THE PUBLIC PERIOD. ANY FURTHER QUESTIONS FROM COUNCIL? IF NOT I WILL ACCEPT A MOTION AND A SECOND. SECOND BY COUNCILMAN PATTERSON.

ANY FURTHER DISCUSSION? WE ARE READY TO VOTE.

>> COUNCIL MEMBER TRAVIS CRAVER, THANK YOU.

[15. Ordinance (Final Reading) Z-2026-30: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on a Request from the Owner to Amend the Terms and Conditions of a Planned Development District (PDD-149). Specifically, to Allow Residential Medium Density (MD) and Patio Home (PH) Uses. Located at 3626 Vogel Avenue. (Tim Littlejohn)]

OH, YES,S. >> ITEM 15.

>> THANK YOU MAYOR AND COUNCIL. ZONING CASE 2026-30.

THE OWNER IS CHASE AND AGENT IS JACOB.

REQUEST FOR YOU TO CONSIDER IS THE AMENDMENT TERMS OF PLANNED DEVELOPMENT DISTRICT 149 TO ALLOW RESIDENTIAL MEDIUM DENSITY AND HOME USES LOCATED AT 36, 26 AVENUE PROCURES LOCATION MAP.

HERE IS THE ZONING MAP. HERE IS THE SUBJECT PROPERTY VIEWS. THE SURROUNDING AREA.

HERE ARE THE ALLOWABLE USES WITHIN THE MEDIUM DENSITY ZONING AS REQUESTED TO BE AMENDED WITHIN THE PD AND THE PATIO HOME ZONING. HERE IS THE CONCEPTUAL PLAN.

HERE IS THE MODIFICATIONS FOR YOU TO CONSIDER AS REQUESTED BY THE APPLICANT TRACK ONE WOULD BE USED FOR A MEDIUM DENSITY DISTRICT. THEY ARE ASKING FOR NO BUFFERS

[00:40:01]

TO BE REQUIRED. TRACK 2 IS TO MOVE TO PATIO HOME DISTRICT WITH A MINIMUM LOT AREA OF 3000 SQUARE FEET FOR THE LOT WITH A 35 FEET MINIMUM DEPTH OF 95 FEET AND A MINIMUM FRONT GARAGE TO INCLUDE GARAGE SETBACK IS 15 FEET.

WITH A SIDE SETBACK OF 5 FEET PER NOTIFICATIONS WERE SENT OUT.

WE DIDN'T RECEIVE ANY RESPONSES. THIS MEETS ALL THE CRITERIA FOR APPROVAL FOR PLANNING AND ZONING DID HEAR THIS CASE THEY ARE RECOMMENDING APPROVAL WITH THE FOLLOWING CONDITIONS THAT THE GARAGE SETBACK BE KEPT AT 20 FEET MINIMUM AS OF TWO OFF STREET PARKING SPACES REQUIRING WITH MINIMUM DIMENSIONS OF 9 FEET BY 18 FEET DEEP. AND TO KEEP THE TYPE A BUFFER REQUIRED WITHIN THE LAND DEVELOPMENT CODE TO BE A BUFFER BETWEEN ANY LOWER DISTRICT AND THEN SIDEWALKS ARE REQUIRED WITHIN THE DEVELOPMENT TO PROMOTE WALK ABILITY.

I WOULD BE HAPPY TO ANSWER ANY QUESTIONS.

SP WHEN YOU FEEL LIKE THE 20TH K IN TERMS OF BUFFERING IN SIDEWALKS MITIGATES ANY POTENTIAL CONFLICTS BETWEEN THE RESIDENTIAL USES IN YOUR OPINION?

>> YES, SIR THE STAFF RECOMMENDATION PROPOSED.

PNZ DID AGREE FOR THE GARAGE FOR VEHICLE TRAFFIC NOT TO BLOCK

SIDEWALKS. >> THANK YOU, TIM.

AT THIS TIME, I WILL OPEN UP THE PUBLIC PERIOD THERE WAS ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 15? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

>> TAMMY, RESIDENT OF ABILENE. I WOULD ASSUME THIS IS GOING TO BE ADDRESSED IN THE FUTURE BUT ONE OF THE THINGS I FOUND WHEN I'M CAMPAIGNING FOR CITY COUNCIL IS THAT THERE ARE SOME TRULY TROUBLING FLOODING PLACES ON THAT PART OF TOWN.

I MET A GENTLEMAN WHO SAYS THAT KIDS HAVE TO WALK IN WATER UP TO THEIR KNEES TO GET DOWN THOSE ROADS BY THOSE SCHOOLS I KNOW THAT Y'ALL ARE INCREASING STORM WATER FEES TO BEGIN CAPITAL PROJECTS TO IMPROVE THE TAKING . I DON'T KNOW IF IT WILL BE ADDRESSED ON THIS SIDE. ALSO I HAVE SPOKEN WITH MAX JOHNSON ABOUT THIS, THE PUBLIC DIRECTOR OF PUBLIC WORKS JUST TO SEE WHAT THE PROBLEM IS AND SO WHEN WE HAVE THAT HORRENDOUS FLASH FLOOD, I TRIED TO DRIVE OVER THERE JUST TO SEE WITH MY OWN EYES. EVERY STREET ON THE NORTH SIDE IS A RIVER WHEN IT HAPPENS. YOU CAN'T EVEN DRIVE DOWN.

I DIDN'T FEEL COMFORTABLE DRIVING DOWN THERE THERE'S PEOPLE WHO LIVE THERE WITH THEIR HOUSES I HAVEN'T HEARD ANYBODY MENTION, WE ARE SORRY ABOUT THE FLOODING ON THE NORTH SIDE.

WE WILL WORK TO GET THAT DONE I COULDN'T EVEN GET TO THE SPOT WHERE THE GENTLEMAN TOLD ME IT WAS BAD IT WAS SO BAD I COULDN'T EVEN GET TO THAT SPOT. I DEFINITELY WOULD NOT HAVE DRIVEN ON THE ACCESS ROAD BECAUSE OF THAT BAD FLOODING.

IT'S CONCERNING ME THAT WE ARE PUTTING MORE HOUSES THERE I THINK IT'S A GREAT THING I'M HAPPY FOR MORE HOUSES BUT I HAVEN'T HEARD ANYONE ADDRESS, THIS IS A PROBLEM.

WHEN IT DOES RAIN AND WHEN IT DOES FLOOD, IT'S A PROBLEM.

THE WATER WAS UP OVER THEIR TIRES.

THIS IS NOT -- I. KNOW IT WAS A FLASH FLOOD.

IT WAS UNEXPECTED WE'VE GOT TO GET THAT RESOLVED.

I KNOW YOU ARE INCREASING RATES TO BE ABLE TO START DOING CAPITAL IMPROVEMENT PROJECTS ON THESE FLOODING ISSUES AS FAR AS TAKING CARE OF THE NORTH SIDE, SOME HAVE MENTIONED THEY ARE FOCUSED ON. WE NEED TO MAKE SURE WE ARE ACTUALLY TAKING CARE OF IT AND NOT JUST WAITING AND KICKING THAT CAN, THAT PROVERBIAL CAN DOWN TO TAKE CARE OF IT.

WE DON'T WANT MORE PEOPLE MOVING IN THERE AND BEING TRAPPED BY FLOOD WATERS. THANK YOU.

>> STILL THE PUBLIC PERIOD ON ITEM 15.

WOULD ANYONE ELSE LIKE TO SPEAK? >> GOOD MORNING.

AGENT FOR THE PROPERTY OWNER. THE ZONING REQUEST IS TO SUPPORT SOME ADDITIONAL PATIO HOME DEVELOPMENT ON THE WEST SIDE.

OUR CLIENT, THE PROPERTY OWNER OF THIS TRACT HAS BEEN DEVELOPING PATIO HOMES ON THE EAST SIDE AS WELL FOR THE LAST COUPLE OF YEARS. THERE WAS AN EXISTING PD ON THE PROPERTY. WE TOOK THE ATTACK OF JUST OMITTING THE PD TO SUPPORT THIS APPROACH A LARGE PORTION OF THE PROPERTY COULD SUPPORT THE PATIO HOME DEVELOPMENT.

HOWEVER, WE HAVE A PIECE ON THE SOUTHWEST CORNER THAT NARROWS UP. WE LEFT ONE LARGE TRACT THAT WE PUT THE MD ZONING ON REQUESTING MD ZONING.

THE INTENT WITH THAT IS TO CONSTRUCT A6-UNIT TOWNHOME FACILITY ON THAT PROPERTY. THAT IS ABOUT THE EXTENT THAT TRACT CAN ACCOMMODATE. WE ARE COMFORTABLE WITH THE CONDITIONS THAT STAFF HAS PUT ON.

THERE'S THREE OF THEM I BELIEVE WITH THE EXCEPTION OF ONE.

THE BUFFERING REQUEST BETWEEN A LOWER AND TENSE ZONING THE LOWER INTENSE IS THERE'S A PART OF THIS BD THAT IS PART OF THIS DEVELOPMENT. CERTAINLY, THE TRACK DURING THE

[00:45:03]

MD TRACK THAT WE ARE GOING TO PLACE TOWNHOMES ON IS A RESIDENTIAL TRACK BECAUSE IT IS MD, IT IS TECHNICALLY A HIGHER CLASSIFICATION THAN THE PATIO HOMES.

BECAUSE THOSE ARE BY DEFINITION A SINGLE FAMILY DWELLING.

CERTAINLY, THERE IS GOING TO BE LANDSCAPE ON THAT PROPERTY.

BUT TO APPLY THE SPECIFIC BUFFER, WE DON'T THINK IT IS APPROPRIATE. WE ARE COMFORTABLE WITH THE CONDITIONS THAT THE STAFF HAD WITH THE EXCEPTION OF THAT ONE.

OUR HOPE IS THAT YOU WOULD APPROVE OUR REQUEST WITHOUT THAT CONDITION. I WOULD HAPPY TO ANSWER YOUR

QUESTIONS IF I CAN. >> THANK YOU.

>> STILL IN THE PUBLIC PERIOD ON ITEM 15.

WOULD ANYONE ELSE LIKE TO SPEAK AT THIS TIME? SEEING NONE, I WILL CLOSE THE PUBLIC PERIOD.

IF THERE'S ANY QUESTIONS BY COUNSEL QUESTION MARKS TIM, WHAT IS STAFF'S THOUGHTS ON REGARDS TO THE BUFFER? THAT WAS YOUR RECOMMENDATION TO P AND Z AND THEY APPROVED THE

CHANGE FROM WHAT WAS REQUESTED? >> STRAIGHT OUT OF THE LAND

DEVELOPMENT CODE. >> THERE WASN'T ANYTHING PARTICULAR ABOUT THIS PROPERTY? SP WENT STRAIGHT OUT OF THE LAND DEVELOPMENT CODE REQUIREMENT BETWEEN THE TWO DISTRICTS.

>> WHAT IS THE BUFFER? >> I BROUGHT IT WITH ME.

IT REQUIRES 15 POINTS TO GAIN THE 15 POINTS IS 5-FOOT WIDE BUFFER YARD PLUS THE 15 POINTS -- WHICH YOU CAN ACHIEVE THE 15 POINTS WITH A COMBINATION OF SEVERAL ITEMS. YOU CAN ACHIEVE ALL 15 POINTS IF YOU DO A MASONRY WALL.

OR IF YOU DO AN OPAQUE FENCE, THAT A 6-FOOT MINIMUM IN HEIGHT EQUALS FIVE POINTS PLUS EXTRA LANDSCAPING, ET-CETERA TO GAIN THE REST OF THE POINTS. IT IS JUST TO CREATE A BUFFER BETWEEN THE LESS INTENSIVE DISTRICT.

IT IS USED ALL OVER THE CITY. BUT IN THIS CASE, WE FELT IT WAS IMPORTANT TO KEEP THAT STANDARD ACROSS THE BOARD, EVEN THOUGH IT IS A PLANNED DEVELOPMENT I DON'T THINK PLAN DEVELOPMENT SHOULD BE USED TO NEGATE THE REQUIREMENT WITHIN THE LAND DEVELOPMENT

CODE. >> IF IT IS NOT THERE, WHAT IS THE SEPARATION REQUIREMENT OR BUFFER REQUIREMENT?

>> IT WOULD BE NO BUFFER, IT WOULD BE A FENCE MORE THAN LIKELY WITH MAYBE SOME LANDSCAPING WITHIN THE NORMAL SETBACKS BETWEEN THE PATIO HOME AND THE TOWNHOME OR DUPLEX OR

WHATEVER THEY INTEND TO BUILD. >> THANKS.

ANY FURTHER QUESTIONS? I WILL ACCEPT A MOTION AND A

SECOND. >> I WILL MAKE A MOTION TO APPROVE WHAT WAS RECOMMENDED OF THE PNC WITH EXCEPTION TO THE

BUFFER. >> THE MOTION BY COUNCILMAN PRICE WAS SECONDED BY COUNCILMAN BEARD FOR DISCUSSION.

WE ARE READY TO VOTE. >> JUST TO BE CLEAR IN FACT WE ARE APPROVING WITHOUT THE PNC CONDITION OF THE TYPE A BUFFER.

>> CORRECT. >> WE ARE READY TO VOTE.

[16. Ordinance (Final Reading) Z-2026-32: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on a Request from the Owner to Change the Zoning of Approximately 25.0 Acres from Agricultural Open (AO) to Planned Development District (PDD-201). Located at 6926 Military Drive. (Tim Littlejohn)]

>> ALL, YESSES, THAT IS CARRIED. >> THANK YOU, MAYOR, COUNCIL ZONING CASE 2026-32. THE OWNER IS ALAMO CITY LAND DEVELOPMENT LLC. THE AGENT IS ROSENBAUM.

THE REQUEST FOR YOU TO CONSIDER IS CHANGED THE ZONING APPROXIMATELY 25 ACRES FROM AGRICULTURAL SPACE TO A PLANNED DEVELOPMENT 201 LOCATED AT 6926 MILITARY DRIVE.

HERE IS THE LOCATION MAP. HERE IS THE CURRENT ZONING.

AREA PHOTOS HERE IS THE CURRENT ALLOWABLE USES WITHIN THE AGRICULTURAL OPEN SPACE.

HERE IS THE USES WITHIN MULTIFAMILY.

THAT WILL BE THE BASE OF THE PLANNED DEVELOPMENT.

HERE IS THE CONCEPTUAL PLAN. AS YOU CAN SEE, IT'S GOING TO BE 120 UNITS, EACH BEING FIVE BEDROOMS EACH.

THIS IS BASICALLY A MANNED CAMP TO SERVE THE CONSTRUCTION WORKERS THAT WILL BE WORKING OUT AT THE AIR FORCE BASE DURING ALL THEIR CONSTRUCTION. NOTIFICATIONS WORTH SENDING OUT WE DIDN'T RECEIVE ANY IN OPPOSITION.

THIS MEETS ALL THE CRITERIA FOR APPROVAL WITHIN THE LAND DEVELOPMENT CODE P AND Z DID HEAR THIS CASE STRICTLY RECOMMENDING TO YOU APPROVAL WITH THE CONDITION THAT FIVE YEARS FROM THE APPROVAL DATE OF THE PLANNED DEVELOPMENT IN FACT THE OWNER SHALL REMOVE ALL UNITS AROUND PARKING LOTS AND OTHER IMPROVEMENTS FROM THE PROPERTY. I WOULD BE HAPPY TO ANSWER ANY

QUESTIONS. >> QUESTIONS TO TIM?

[00:50:01]

>> THE FIVE YEARS, WAS THAT SOMETHING THAT WAS DISCUSSED WITH P&Z, OR SOMEONE MADE THAT AS PART OF THE MOTION?

>> THAT WAS THE STAFF RECOMMENDATION TO PLANNING AND

ZONING FOR. >> WE ANTICIPATE THE CONSTRUCTION SHOULD BE FINISHED WITHIN FIVE YEARS?

>> WE ANTICIPATED BUT ALSO ADVISE THEM IF IT'S GOING TO BE EXTENDED, WE COULD AMEND THE PD, AND Y'ALL COULD EXTEND IT AT

THAT TIME TO EXTEND THE TERMS. >> YOU KNOW WHAT ROADS AND

PARKING LOTS WILL BE REQUIRED? >> IT WOULD HAVE TO MEET ALL THE REQUIREMENTS WITHIN OUR LAND DEVELOPMENT CODE.

>> WHY WOULD WE MAKE THEM TAKE OUT PAVED ROADS? IN PARKING LOTS? WHAT IS THE THINKING THERE?

>> I UNDERSTAND THE REMOVAL OF THE UNITS, I GET THAT BUT TAKING INFRASTRUCTURE, REQUIRED INFRASTRUCTURE.

WHAT'S YOUR THOUGHT ON THAT? >> JUST TO TURN IT BACK INTO AGRICULTURAL SPACE FOR REDEVELOPMENT IN THE FUTURE.

BECAUSE THE WAY THAT THEY WILL BE LAID OUT, I DON'T KNOW IF IT WOULD BE CONDUCIVE TO RE-USE IN THE FUTURE.

IT WOULD BE A PRIVATE DRIVE. IT WON'T BE BUILT TO A STREET

STANDARD. >> GOTCHA.

>> THAT MAKES SENSE. >> FURTHER QUESTIONS? AT THIS TIME I WILL OPEN UP THE PUBLIC PERIOD IS ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 16? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

SP 32 I WILL CLOSE THE PUBLIC PERIOD.

ANY FURTHER DISCUSSION BY COUNCIL? I WILL ACCEPT A MOTION AND A SECOND WE HAVE A MOTION BY COUNCIL PATTERSON. SECOND BY COUNCILMAN CRAVER.

WE ARE READY TO VOTE. >> ONE NO FROM MAYOR HURT, THE

[17. Ordinance (Final Reading) Z-2026-33: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on a Request from the Owner to Change the Zoning of Approximately 0.48 Acres from Heavy Commercial (HC) to Residential Single-Family (RS-6) Zoning. Located at 801 N 13th Street and 1226 Mesquite Street. (Tim Littlejohn)]

REST RS. >> ITEM 17.

I BELIEVE THIS IS YOUR LAST ONE. >> THANK YOU MAYOR AND COUNCIL.

UP FOR CONSIDERATION IS ZONING CASE.

THE OWNER IS ANTHER INC. THE REQUEST IS FOR YOU TO CONSIDER TO CHANGE THE ZONING OF APPROXIMATELY HALF AN ACRE FROM HEAVY COMMERCIAL TO FAMILY ARE S SIX LOCATED ON 801 NORTH 13TH STREET AND 1226 MESQUITE STREET. HERE'S THE LOCATION MAP.

HERE IS THE CURRENT ZONING. THE PROPERTY VIEWS.

HERE ARE SOME NEIGHBORING PROPERTY VIEWS.

HERE ARE THE CURRENT ALLOWABLE USES WITHIN HEAVY COMMERCIAL.

IN THE ALLOWABLE USES REQUESTED RESIDENTIAL ZONING.

NOTIFICATION WERE SENT OUT. WE DID RECEIVE ONE IN OPPOSITION RESULTING IN A .30 8% IN OPPOSITION.

THIS MEETS ALL THE CRITERIA FOR APPROVAL WITHIN THE LAND DEVELOPMENT CODE, PLANNING AND ZONING DID HEAR THIS CASE AND DO RECOMMEND TO YOU APPROVAL THIS MORNING BE HAPPY TO ANSWER ANY

QUESTIONS. >> QUESTIONS TO TIM.

AT THIS TIME I WILL OPEN UP THE PUBLIC PERIOD.

IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 17? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

SEEING NO ONE I WILL CLOSE THE PUBLIC PERIOD.

I WILL ACCEPT A MOTION AND A SECOND.

>> SO MOVED. >> I HAVE A MOTION BY COUNCILMAN ESPINOZA AND SECONDED BY COUNCILMAN PRICE.

ANY DISCUSSION? READY TO VOTE.

[18. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Authorizing the City Manager to Execute a Professional Services Contract with HDR Engineering, Inc. for PFAS Preliminary Design Services (Matthew Dane)]

>> ALL, YESSES. THAT IS CARRIED.

>> WE WILL MOVE TO ITEM 18 I WILL ASK THE DIRECTOR OF WATER AND UTILITIES TO PRESENT THIS ITEM.

>> GOOD MORNING MAYOR AND COUNCIL IT'S KIND OF AN EXCITING SET OF ITEMS FOR THE WATER UTILITY.

WE'VE GOT A LOT OF IRONS IN THE FIRE RIGHT NOW WE HAVE OPENED INTRODUCTIONS INTO JEREMIAH, OUR ASSISTANT DIRECTOR.

HE HAS BEEN THE ONE RUNNING POINT ON THE FOLLOWING ITEM FOR

HB 500. >> GOOD MORNING, COUNCIL.

WE HAVE BEFORE YOU TODAY APPROVAL FOR PROFESSIONAL SERVICES CONTRACT WITH ENGINEERING RELATED TO PRELIMINARY DESIGN FOR TREATMENT WE PLANNED TO FUND THIS PROJECT THROUGH SETTLEMENT FUNDS WHICH I WILL TALK ABOUT ON THE NEXT SLIDE. HDR WAS SELECTED AS PART OF A PROCESS. THE PURPOSE OF A TEAM.

DEMONSTRATED THEIR EXPERIENCE. THEY WERE ULTIMATELY SELECTED FOR THIS OPPORTUNITY. EARLIER THIS YEAR WE RECEIVED $8.7 MILLION RELATED TO THE SETTLEMENT CASE AGAINST MULTIPLE CHEMICAL COMPANIES. OUR PLAN IS TO FUND NOT ONLY THIS CONTRACT BUT ALL THE FUTURE THINGS RELATED TO PFAS WITH THIS

[00:55:04]

MONEY THAT WOULD INCLUDE ACTUAL DESIGN OF THE TREATMENT.

AND HOPEFULLY THOSE FUNDS WILL ROLL INTO CONSTRUCTION.

HOW DID WE GET HERE? DURING THE 2024-2023 YOU SEE FIVE SAMPLING THAT WAS REQUIRED BY THE EPA, IT DID IDENTIFY PFAS LEVELS THAT WERE HIGHER THAN THE THEN PROPOSED PARTS PER TRILLION FOR THOSE SPECIFIC CHEMICALS THEY ALSO SET THE DATE OF APRIL OF 2029 AS THE COMPLIANCE DATE. BEFORE WE CAN MOVE FORWARD WITH GOING INTO DESIGN, WE HAVE TO FIGURE OUT WHAT TREATMENT TECHNOLOGY THAT WE ARE GOING TO USE.

AS I'M SURE YOU CAN IMAGINE, SINCE THIS REQUIREMENT HAS COME OUT, THERE'S BEEN A LOT OF NEW COMPANIES AND A LOT OF TECHNOLOGY AND A LOT OF NEW SCIENCE THAT HAS BEEN DEVELOPED AND THAT HAS BEEN TRIED TO SEE HOW TO REMOVE THESE CHEMICALS INSTEAD OF JUST PICKING WHO WE FEEL IS BEST, WE THOUGHT IT WAS IMPORTANT TO DEVELOP AND GET SOME SCIENCE BEHIND THE DECISION. ORIGINALLY, THEY PROPOSED IN APRIL 2029 COMPLIANCE DATE. IN 2025, THEY SENT OUT A PRESS RELEASE THAT SAID, WE MIGHT EXTEND THAT PICK WE WILL GIVE YOU UNTIL 2031 TO MEET COMPLIANCE.

JUST IN MAY THEY ANNOUNCED THAT THEY ARE NOT GOING TO DO A COMPLETE EXTENSION DEADLINE. THEY ARE GOING TO ALLOW FOR EXTENSION REQUESTS. UTILITY COULD REQUEST TO DO AN EXTENSION THROUGH 2031. HOWEVER, THERE ARE ADDITIONAL REQUIREMENTS FOR THAT. IF YOU ARE GRANTED AN EXTENSION, YOU STILL HAVE TO MEET OTHER REQUIREMENTS DURING THOSE TWO YEARS. ONE OF THOSE REQUIREMENTS IS PROVIDING BRITA PITCHER FILTERS TO ALL OF YOUR CUSTOMERS WITHIN THOSE TWO YEARS. THEY ARE GIVING YOU AN EXTENSION, BUT THEY'RE ALSO DOING MORE REQUIREMENTS THAT ARE TECHNICALLY UNFUNDED IN ORDER TO GET THAT EXTENSION.

SO WE ARE MANAGING TO GO THROUGH THAT AND FIGURE OUT HOW WE ARE GOING TO MEET THIS 2029 DEADLINE.

THAT RULE IS STILL PROPOSED. IT IS CURRENTLY UNDER PUBLIC COMMENT. I WOULDN'T BE SURPRISED IF THEY TWEAK IT EVEN MORE BEFORE THEY ACTUALLY GIVE US THE FINAL RULE.

WHAT DOES THIS CONTRACT DO? IT'S GOING TO LOOK AT EXISTING DATA AND COLLECT SOME MORE DATA FOR THE USE CMR5 DATA THAT WE REQUIRED WAS VERY SPECIFIC. VERY SPECIFIC SAMPLE POINTS THAT WE WOULD LIKE TO BROADEN THAT SO WE COULD UNDERSTAND HOW PFAS IS MOVING THROUGH OUR SYSTEM BUT WE ALSO WANT TO LOOK AT TRANSPORT ARE THERE POINT SOURCES WITHIN OUR UTILITY, WITHIN THE ECOSYSTEM OF OUR WATER THAT IS CONTINUALLY PUTTING PFAS INTO OUR WATER? IF IT IS, HOW DO WE DEVELOP A PLAN TO STOP IT? WE HAVE TO STOP THE SOURCE, OR WE WILL JUST BE TREATING IT FOREVER SINCE THEY ARE FOREVER CHEMICALS. WE ARE GOING TO DO SOME SMALL SCALE TESTING HERE THIS IS BENCH SCALE TESTING THAT WE CAN THEN USE THAT DATA TO DETERMINE WHAT KIND OF PILOTS DO THEY WANT TO DO AND WHICH TECHNOLOGIES MAKE SENSE FOR THAT? WE DON'T WANT A PILOT TEST EVERY TECHNOLOGY BECAUSE THAT CAN GET EXPENSIVE BUT WE WANT TO PICK A FEW ONES THAT WILL SHOW THE BEST RESULTS WITH OUR WATER AND MOVE THAT INTO A PILOT.

HOPEFULLY BY THE END, WE WILL HAVE SOME GOOD COST ESTIMATES ON WHAT IMPLEMENTING THAT ENTIRE WATER TREATMENT PLAN IS GOING TO COST AND HOW WE CAN PROJECT THOSE RIGHT NOW, THERE IS STILL A BIG UNKNOWN ON WHAT THE COST IS GOING TO BE.

AS THIS TECHNOLOGY CHANGES, AS IT BECOMES MORE IN DEMAND AND ALL UTILITIES AROUND THE U.S. ARE HAVING TO IMPLEMENT THIS, JUST COST IS A BIG UNKNOWN FOR US RIGHT NOW.

IF THERE ARE ANY QUESTIONS OR THINGS I NEED TO ANSWER.

>> THIS IS NOT ISOLATED TO ABILENE.

I WANT ABILENE RESIDENTS TO KNOW THAT THIS IS NOT A ABILENE PROBLEM THIS IS A FEDERAL UNFUNDED MANDATE FOR THE MOST PART. AND THESE MONITORING LEVELS -- THERE IS NO WAY TO GET A BASE OF WHAT THESE LEVELS ARE, BECAUSE WE'VE NEVER MONITORED THEM BEFORE FOR WE ARE KIND OF

SHOOTING IN THE DARK HERE. >> THAT IS CORRECT.

THE DATA THAT WE HAVE. >> HOW WE IMPLEMENT THAT WE ARE HAVING THESE GUIDELINES PUT ON US.

I WANT THE RESIDENTS OF ABILENE TO KNOW, THIS PFAS LEVELS ARE NOT A DANGER TO OUR WATER BUT WE WANT TO GET RID OF THE FOREVER CHEMICALS AS MANDATED BY THE FEDERALS TO DO IT IT'S UNFUNDED.

IT'S GOING TO COST A LOT OF MONEY.

WE DON'T KNOW WHAT THAT IS YET. THIS IS JUST THE BEGINNING I WANT EVERYBODY TO KNOW THAT THIS IS NOT AN ISOLATED INCIDENT TO

ABILENE WATER. >> I HAD A QUESTION.

YOU MENTIONED, IF WE REQUEST EXTENSION UNTIL 2031, WE HAVE TO

[01:00:02]

START PROVIDING THINGS LIKE BRITA FILTERS TO CUSTOMERS.

WHAT IS THE SCOPE OF THAT? CUSTOMERS IN ABILENE ARE DIRECTLY CONNECTED TO THE ABILENE SYSTEM, ORDERS THAT EXTEND THROUGH THE CORPORATIONS THAT GET THEIR WATER FROM US?

>> THAT IS STILL UNCLEAR. THEY HAVEN'T DEFINED THAT COMPLETELY IN THE PROPOSED RULE. I WOULD SUSPECT THAT IT WOULD BE US AS THE WHOLESALE -- PROVIDING WHOLESALE TO THOSE CUSTOMERS TO WORK WITH THE WHOLESALE PROVIDER ON HOW THEY DO THAT.

TCQ DOES CONSIDER OUR WHOLESALE POPULATION WHEN THEY LOOK AT OUR PRODUCTION CAPACITY AND THINGS LIKE THAT.

IT IS STILL UP IN THE AIR ON HOW THEY WANT TO DECIDE THAT.

>> THE MONEY THAT GOES INTO THAT COST, IS IT THROUGH THE SETTLEMENT? IS IT AN ADDED EXPENSE?

WHAT DOES THAT LOOK LIKE? >> RIGHT NOW, THE 8.7 MILLILITERS FROM THE SETTLEMENT AND PLAN TO USE AS MUCH OF THAT AS WE CAN FOR IT IS A POSSIBILITY THAT AS WE GET TO CONSTRUCTION, WE DON'T HAVE ENOUGH MONEY.

WE WOULD SPEND IT ALL AND THERE WOULD STILL BE A DELTA LEFT OVER. AS WE PREPARE FOR THAT AND WE LOOK AT OUR 5-YEAR RATE PLANS, WE WOULD PLAN TO COVER THAT ADDITIONAL COST THROUGH OUR CIP -- WHICH WOULD THEN BE RELATED

INTO THE RATES. >> WE ARE HAVING TO LOOK AT WHAT OPTIONS ARE FROM A TECHNOLOGY PERSPECTIVE ON TREATING THESE.

YOU SAID THERE'S BEEN A BUNCH OF COMPANIES COMING OUT AND LOTS OF NEW TECHNOLOGIES AND RESEARCH BEING DONE.

IS THERE A BALLPARK SPITBALL AMOUNT THAT WILL IMPACT THE CITY WATER UTILITY BUDGET SPECIFICALLY TO PFAS?

>> NOT THAT I CAN GIVE RIGHT NOW WE DID SOME PRELIMINARY NUMBERS RELATED TO PFAS AND THE EXPANSION OF THE NORTHEAST WATER TREATMENT PLANT. WE HAVEN'T LOOKED AT PFAS AND HOW IT RELATES TO THE WATER TREATMENT PLANT.

WE ALSO HAVE PK. LUCKILY WITH PK, THEY USE OUR ROAD TO TREAT THE WATER -- WHICH IS A KNOWN TECHNOLOGY THAT CAN REMOVE PFAS. WE ARE LOOKING AT NORTH EAST AND WHAT TECHNOLOGY. THAT IS A CONVENTIONAL TREATMENT PROCESS. IF I HAD TO BALLPARK IT AND THROW A DART AT THE WALL, I WOULD SAY THAT THE IMPLEMENTATION OF THAT TREATMENT PROCESS COULD RANGE FROM 5-10000000. AND THEN THERE'S ADDITIONAL COST DEPENDING ON THE TREATMENT TECHNOLOGY THAT WE DECIDE TO GO WITH. FOR EXAMPLE, GRANULATED ACTIVATED CARBON. THAT CAN MOVE PFAS.

IT ALSO PRODUCES A WASTE. WE HAVE TO TAKE THAT CARBON AND EITHER REGENERATE IT AND GET TO A POINT WHERE IT IS NO LONGER ABLE TO GET REUSED. WE HAVE TO DISPOSE OF IT.

THAT IS A LONG TERM MAINTENANCE COST THAT WE WOULD HAVE TO THEN SHOULDER. THAT IS WHY IT IS IMPORTANT FOR US TO FIND IF THERE ARE POINT SOURCES, IF WE CAN GET THEM TO STOP OR IF WE KNOW THAT THEY ARE STOPPED, WE WILL EVENTUALLY GET TO A POINT WHERE WE REACH A STABLE -- THERE'S NO MORE NEW PFAS COMING IN. WE CAN TREAT IT AND HOPEFULLY

ADJUST OUR PROCESS. >> IT LOOKS LIKE THE SETTLEMENT

MAY COVER A SIGNIFICANT PORTION. >> CORRECT.

>> BUT IT MAY NOT. >> IT MAY NOT, BUT IT MIGHT.

5-10000000 POTENTIAL. >> COVER 8.7 NOW.

>> ONCE THIS IS COMPLETED CAN WE PRESENT WHEN WE MOVE THROUGH DESIGN, WE WILL GIVE A COMPLETE UPDATE ON WHERE WE STARTED WITH THE COST NOW AND WHAT THE FUTURE LOOKS LIKE.

>> THANK YOU. >> HOW ARE WE FEELING ABOUT THE 2029 DEADLINE? IS THAT REALISTIC FOR US TO HAVE SOMETHING IN PLACE BY THEN? OR ARE WE FEELING THE HEAT AS

FAR AS TIME ON THAT ONE? >> I THINK WITH ENOUGH FUNDS, PEOPLE CAN MOVE QUICKLY. THERE'S OTHER THINGS WE CAN LEVERAGE. THERE'S DIFFERENT DESIGN AND CONSTRUCTION METHODS THAT WE CAN LOOK AT.

FORTUNATELY, WE HAVE ALREADY STARTED THE IMPROVEMENT DESIGN FOR NORTH EAST SO THERE'S ALREADY SOME OF THAT IN PROGRESS. LET'S TAKE THIS TECHNOLOGY, AND HOW CAN WE PLUG IT IN? NOT NECESSARILY DESIGNING IT

FROM SCRATCH. >> ANY QUESTIONS?

THANK YOU. >> THANKS VERY MUCH.

>> AT THIS TIME I WILL OPEN UP THE PUBLIC PERIOD.

IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 18? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

>> TAMMY, CITIZEN OF ABILENE. IT IS ME AGAIN.

AND I KNOW THAT I HAVE INVESTED TIME AND ENERGY TO BE HERE.

NOT EVERYBODY CAN. I DON'T MIND BEING THE ONLY PERSON HERE SPEAKING ON THESE ISSUES FOR A LOT OF PEOPLE DON'T KNOW WHAT'S GOING ON NOR HAVE THEY BEEN PAYING ATTENTION TO UNDERSTAND HOW -- I DON'T KNOW THE MOTIVE OF WHY YOU WOULD SAY

[01:05:03]

IT IS UNFUNDED MANDATE. I WOULD THINK THAT AS A MUNICIPALITY WHO IS SUPPOSED TO SERVE YOUR CITIZENS, YOU HAVE MANDATES TO TAKE CARE OF OUR HEALTH.

AND YOU SHOULD FUND IT REGARDLESS WHAT THE STATE DOES THAT SHOULD BE A NO BRAINER. THIS IS ALSO NOT THE FIRST TIME THIS CONVERSATION HAS BEEN HAD. I WILL DISCUSS THIS ISSUE BACK IN JANUARY OF '25 WITH A BUDGET RETREAT YOU HAD THEN I DON'T KNOW OR COUNCIL RETREAT OR WHATEVER.

WE ALREADY KNEW THE COST WAS COMING.

MY QUESTION IS WHY WAS THE SETTLEMENT ALWAYS PART OF THE PLAN? BUT WAS THE SETTLEMENT PART OF WHAT WE WERE DOING TO PLAN FOR THIS REMOVAL? BECAUSE I DON'T USE ABILENE WATER AS MUCH AS I POSSIBLY CAN.

THANKFULLY, THE FLUORIDE HAS BEEN REMOVED.

I WAS A BIG PROPONENT OF REMOVING THAT.

THANKFULLY, I ONLY HAVE TO SHOWER AND COOK AND WASH CLOTHES IN ALL THE PFAS. IT'S BEEN A PROBLEM, YOU TALKED ABOUT IT AT OTHER TIMES. THIS HAS BEEN A PROBLEM THAT HAS BEEN IN THE WORKS FOR A WHILE. TO ACT LIKE WE ARE IN THE NEW PART OF THIS. MAINLY I'M SAYING YOU DIDN'T PRESENT INFORMATION AS IF YOU'VE ALREADY HAD THIS CONVERSATION WE JUST WANT A SETTLEMENT. TO MAKE, THAT'S WHAT'S FRUSTRATING AS A CITIZEN. IF YOU COULD HAVE CONNECTED THE CONVERSATION TO WHAT Y'ALL TALKED ABOUT IN THE COUNCIL RETREAT AND ABOUT HOW WE HAD A CIP WHICH WAS MENTIONED FOR CAPITAL IMPROVEMENT PROJECT TO START WORKING ON THIS REQUIREMENT, BECAUSE YOU WON'T DO THE RIGHT THING UNLESS THE NATIONAL GOVERNMENT FORCES YOU TO -- WHICH IS TROUBLING.

WE SHOULD DO THE RIGHT THING, BECAUSE IT IS THE RIGHT THING NO MATTER WHAT. I'M HOPING THAT YOU WILL LIKE THIS GENTLEMAN SAID, HE IS THE GOOD COP.

I'M THE BAD COP. I HOPE HE WILL ACTUALLY SHARE WHERE THAT $8.7 MILLION GOES. IT WON'T JUST BE LIKE WE SPENT IT. ONCE THINGS GO IN THE WATER DEPARTMENT, THEY ARE NEVER TO BE SEEN AGAIN.

WE DON'T KNOW ALL THE MONEY THAT'S BEEN SPENT THERE BECAUSE WE DON'T HAVE ACCESS TO IT LIKE WE DO IN THE GENERAL FUND BUDGET AS CITIZENS UNLESS YOU WANT TO PIR SOMETHING OR MAKE A PUBLIC INFORMATION REQUEST. FOR ME IT DOESN'T GO.

IT'S OBFUSCATED AND MADE DIFFICULT.

FINDING OUT INFORMATION THAT'S AVAILABLE ON THE WEBSITE IS FRUSTRATING. PLEASE DON'T TALK ABOUT UNFUNDED MANDATES. THAT IS YOUR JOB TO MANAGE AND TAKE CARE OF US AS CITIZENS FOR OUR PUBLIC SAFETY AND OUR WATER.

THOSE THINGS SHOULD BE OBVIOUS THINGS THAT YOU DO AS A COUNCIL.

WE SHOULD LOOK AT WAYS TO START TAKING ADVANTAGE I'M VERY ENCOURAGED BY THE PRESENTATION IT SOUNDS LIKE WE ONLY HAVE ONE SYSTEM THAT REALLY IS NEEDING TO BE ADDRESSED FOR THE OTHER ONES ARE ALREADY BY REVERSE OSMOSIS TAKING CARE OF THAT I'M LOOKING FORWARD TO SEE HOW THIS MONEY IS SPENT AND HOW WE WILL FUND THIS IN DAYS TO COME. THANK YOU.

>> ON THE PUBLIC PERIOD ON ITEM 18.

>> DREW ELLIOTT OF TEXAS AGAIN. YOU KNOW THAT IS WHAT BROUGHT ME HERE TODAY WAS THIS RESOLUTION. I'M SURE SOME OF YOU ARE AWARE OF THE CONTENTION THAT'S GOING ON WITH THE WATER SUPPLY COMPANY RIGHT NOW WITH A 1 METER RULE REGULATION THAT HAS BEEN ENFORCED. THERE HAS BEEN JUST A LOT OF STRIFE BETWEEN CUSTOMERS AND THE BOARD OF THAT WATER SUPPLY CORPORATION. MOST OF THE GRIEVANCES THERE STEM FROM TRANSPARENCY. THAT IS WHY I REALLY HARPED ON THAT TODAY. I FEEL LIKE TAMI SAID, AS LONG AS THE FUNDS ARE TRANSPARENT, WE SEE WHERE THEY ARE GOING I THINK THIS IS A GOOD THING FROM WHAT RESEARCH I HAVE DONE ON THE ENGINEERING. THEY SEEM LIKE A VERY ETHICAL CORPORATION WITH A PROVEN TRACK RECORD.

I THINK THAT IS A GREAT START. I THINK LOOKING FOR THE POINT SOURCE -- THANK YOU FOR FIXING THE PROBLEM AND NOT JUST PUTTING A BAND-AID ON IT. I THINK THAT SOUNDS GREAT, INCLUDING THE OTHER WATER SYSTEMS AND THE BIG COUNTRY.

I WILL DEFINITELY STAY TUNED TO SEE IF WE WILL BE INVOLVED AND INCLUDED OUT THERE ON THE EXTENSION OF BRITA FILTERS.

THAT SEEMS LIKE A MANDATE. AT LEAST THAT IS SOMETHING.

IT SEEMS LIKE A MOVEMENT IN THE RIGHT DIRECTION.

I WANT TO REALLY STRESS TRANSPARENCY ON THAT WITH EVERYTHING ELSE GOING ON, PEOPLE'S WATER IS CRUCIAL IN THIS DESERT ENVIRONMENT WE LIVE IN SO TRANSPARENCY TRANSPARENCY THANK YOU ALL FOR BEING PROACTIVE.

>> STILL IN THE PUBLIC COMMENT PERIOD ON ITEM 18.

WOULD ANYONE ELSE LIKE TO SPEAK? SEEING NONE I WILL CLOSE THE PUBLIC PERIOD. DID YOU WANT TO MAKE A RESPONSE?

>> JUST A COUPLE OF POINTS OF CLARITY SO THE PUBLIC HAS SOME UNDERSTANDING. I WON'T PUT WORDS IN YOUR MOUTH, MAY APPEAR SOMETIMES IN WATER UTILITIES WHEN WE TALK ABOUT AN UNFUNDED MANDATE, WHAT WE REALLY ARE INDICATING IS A SET OF RULES HAS BEEN PUT ON US THAT WERE NOR OWN CHOOSING.

SOMETIMES WE HAVE MUNICIPAL REGULATIONS THAT WE DO, AND WE CHOOSE THOSE. IN THIS CASE YOU HAVE AT A FEDERAL LEVEL, THIS IS THE STANDARD WE NEED TO MEET.

AND EVERYBODY HAS TO MEET AT. SOMETIMES AT THE FEDERAL LEVEL

[01:10:02]

WHEN THEY DO THAT THEY WILL OFFER SOME FUNDING, BECAUSE THEY RECOGNIZE THE FINANCIAL BURDEN THEY ARE CREATING.

IN THIS CASE, THEY DID NOT. JUST TO ADD A LITTLE BIT OF CLARITY TO THAT. IT IS A STANDARD BEING SET AT THE FEDERAL LEVEL WITH NO FEDERAL FUNDING BEING DIRECTLY OFFERED. THERE ARE SOME OPPORTUNITIES OUT THERE, AND WE ARE GOING TO PURSUE THOSE WHERE WE CAN.

AND I THINK ONE THING WORTH NOTING IN TERMS OF OUR OWN PLANNING, WE HAVE BEEN LOOKING AT GETTING THIS FUNDED.

WE DIDN'T KNOW THAT THE SETTLEMENT WAS GOING TO HAPPEN.

FULL CREDIT GOES TO THE CITY ATTORNEY STANLEY SMITH.

HE SAW THIS COME AROUND AND DID ALL OF THE HARD WORK OF PUTTING THE DATA TOGETHER AND GETTING IT ALL PACKAGED UP.

HE IS THE ONE THAT MADE THE SETTLEMENT HAPPEN.

I PERSONALLY IT'S A BIT OF A CRYSTAL BALL.

MY GUESS IS WE WILL EXHAUST ALL THE SETTLEMENT FUNDS ON PFAS RELATED IMPROVEMENTS. MORE THAN HAPPY TO SHARE THAT DURING THE OVERAGE THAT WILL BE DUE TO PFAS LIKE SO MANY OF OUR OTHER TREATMENT IMPROVEMENTS WILL BE SPREAD AMONG ALL THE CUSTOMERS AND WHATEVER THE EQUITABLE SPREAD IS AMONG ALL THE CUSTOMERS WHO RECEIVE OUR WATER.

RIGHT NOW, THAT IS KIND OF THE FUNDING INTENTION AS FAR AS

WATER UTILITY GOES. >> THANK YOU.

>> CAN I ADD ONE MORE THING? THE FUNDING THAT MATT MENTIONED, THE FEDERAL GOVERNMENT ISN'T GIVING US GRANT LIKE THE NEXT ITEM I'M ABOUT TO TALK ABOUT. ANY FUNDING THAT THEY GIVE IS A LOAN. THEY ARE GIVING US FUNDING, BUT WE ARE TAKING A LOAN AND PAYING INTEREST AND HAVING TO PAY IT

BACK. >> THANK YOU.

>> OTHER QUESTIONS, COUNCIL? >> YES.

I JUST WANTED TO MAKE SURE JUST FOR TRANSPARENCY THAT OUT OF THIS $8.7 MILLION THROUGH THE SETTLEMENT THAT THE 442 THAT IS FROM THAT AMOUNT, I JUST WANT TO MAKE SURE THAT IS CLEAR.

THAT IS HOW WE ARE STARTING TO SPEND THAT MONEY.

>> THAT IS. THIS CONTRACT THAT YOU ARE APPROVING -- WHICH IS HDR ENGINEERING WITH A COUPLE OF LOCAL PARTNERS, ALL OF THIS SCOPE IS GOING TO BE PAID FOR OUT OF THE SETTLEMENT FUNDS. THERE WILL PROBABLY BE SOME DESIGN RELATED EFFORT ONCE WE HAVE TESTED A FEW TECHNOLOGIES TO SEE WHAT MAKES THE MOST SENSE.

THEN WE WILL GO FROM A PRELIMINARY DESIGN TO A FULL DESIGN. AGAIN, WE WILL LOOK FOR OPPORTUNITIES TO HAVE THE SETTLEMENT FUNDS GO TO COVER THAT. REALISTICALLY, PROBABLY, THE REMAINDER OF THOSE FUNDS WHEN WE GET TO CONSTRUCTION, WE WERE APPLYING THAT TO WHAT WE BID OUT FOR IMPROVEMENTS THAT ARE DIRECTLY RELATED TO PFAS. THAT IS THE PLAN RIGHT NOW AND WE WILL SEE HOW IT ALL GOES. THIS CONTRACT WILL BE PAID FOR

WITH THOSE FUNDS. >> ANYONE ELSE? THANK YOU FOR CLARIFYING THAT. PUBLIC SAFETY AND PUBLIC HEALTH IS IMPORTANT TO THIS COUNCIL. BUT AN UNFUNDED MANDATE IS JUST THAT. IT IS A MANDATE PUT ON US THAT THE FEDERAL GOVERNMENT IS NOT FUNDING.

WE WILL HAVE TO FUND IT, IT IS AN UNFUNDED MANDATE.

ANY FURTHER QUESTIONS? IF NOT, I WILL ACCEPT A MOTION AND A SECOND. WE HAVE A MOTION BY COUNCILMAN BEARD AND SECOND BY COUNCIL PATTERSON.

WE ARE READY TO VOTE. >> ALL, YESSES.

[19. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action to Authorize an Application for Financial Assistance from the Texas Water Development Board Water Supply and Infrastructure Grant (WSIG) Program (Matthew Dane)]

>> MATTHEW, YOU ARE UP AGAIN. >> OKAY, LET'S TALK ABOUT SOME FREE MONEY. SO THIS IS AN AUTHORIZATION TO ALLOW US TO SUBMIT A $15.2 MILLION APPLICATION TO THE TEXAS WATER DEVELOPMENT BOARD FOR THEIR WATER SUPPLY AND INFRASTRUCTURE GRANT PROGRAM. THE WATERBOARD RECEIVED MONEY THROUGH THE HOUSE BILL 500. AND THEY ARE NOW OBLIGATED TO RELEASE THAT MONEY TO UTILITIES THROUGH A GRANT PROGRAM.

THIS IS 100% GRANT. THERE IS NO CITY MATCH.

WE JUST HAVE TO SUBMIT AN APPLICATION AND HOPEFULLY SCORE WELL ENOUGH SO THAT WE RECEIVE SOME OF THAT FUNDING FOR WE HAVE IDENTIFIED TWO PROJECTS THAT WE PACKAGED TOGETHER INTO THIS PROGRAM AND TO SUBMIT WITH THE APPLICATION.

THE FIRST ONE IS THE FORT PHANTOM HILL WATER LINE LOOP THE SECOND ONE IS A 36-INCH RAW WATER TRANSMISSION LINE REPLACEMENT. THESE PROJECTS ARE BOTH DESIGNED AND READY TO GO TO BID. WE COULD BID THEM TODAY AND START CONSTRUCTION. THAT WAS ONE OF THE REQUIREMENTS FOR THIS APPLICATION IS THAT YOU HAVE A PROJECT THAT IS SHOVEL READY. SO THE FORT PHANTOM HILL WATER LAND LOOP, THIS IS A 10-INCH PVC WATER LINE THAT WILL CONNECT THE TWO PRESSURE PLAINS THAT SURROUND THE LAKE.

IT WILL GO THROUGH THE NORTH AND GO AROUND THE NORTH SIDE OF THE LAKE. THIS IS TO HELP PROVIDE REDUNDANCY THAT THOSE PRESSURE PLANES THROUGH MAINTENANCE OR DURING EMERGENCIES WOULD BE ABLE TO MOVE WATER FROM ONE PLANE TO THE OTHER AND KEEP PEOPLE WITHIN SERVICE.

[01:15:03]

AND ALSO HELP IMPROVE QUALITY AND PRESSURE IN THAT AREA.

THIS PROJECT IS EXPECTED TO COST AROUND $3.7 MILLION.

HERE IS A MAP SHOWING THE WATER LINE LOOP.

YOU CAN SEE HOW IT GOES AROUND THE LAKE.

AND IT ALSO FOLLOWS THE NEW TEXTILE ROAD THAT WAS RECENTLY CONSTRUCTED AND COMPLETED. THE NEXT PROJECT IS THE 36-INCH RAW WATER TRANSMISSION LINE. THIS IS ABOUT 2.5 MILES OF REPLACEMENT. IT IS CURRENTLY A 30-INCH WATER LINE. WE ARE GOING TO UPSIZE IT TO 36-INCH. THIS LINE IS IMPORTANT BECAUSE IT FEEDS BOTH OUR GRIMES AND OUR NORTHEAST WATER TREATMENT PLANT.

IT HAS REACHED THE END OF ITS LIFE.

WE ARE STARTING TO SEE MORE BREAKS ON THIS LINE AND MORE LEAKS APPEAR BECAUSE IT IS SO CRITICAL, WE WANTED TO GET THIS PROJECT OFF THE GROUND AND HELP US BE MORE RELIABLE IN THE WATER THAT WE PROVIDE TO OUR PLANTS SO THAT WE CAN THEN PROVIDE IT TO OUR CUSTOMERS. THIS PROJECT IS ESTIMATED TO BE $11.4 MILLION. HERE IS A MAP OF THE WATER LINE.

IT GOES FROM ABOUT MIDWAY. ABOUT HALFWAY TO THE FORT PHANTOM INTAKE STATION ALL THE WAY DOWN TO I-20 THERE'S A BIG I EXPANSION PROJECT THAT WE ARE ALREADY WORKING IN THAT IS COVERING SOME OF THE STUFF UNDER I-20.

THAT WAS ACTUALLY FUNDED THROUGH TXDOT REIMBURSEMENT FOR A SMALL PORTION WAS REFUNDED FOR THE REST OF IT HOPING TO GET FUNDED THROUGH THIS. THIS IS PHASE ONE OF THE ENTIRE LINE. THE NEXT PHASE WOULD GO FROM WHERE THIS PROJECT ENDS ALL THE WAY BACK TO THE RAW WATER IN INTAKE. AND ANSWER ANY QUESTIONS.

>> JUST TO CLARIFY, WE ARE NOT APPROVING THE PROJECTS WE ARE

JUST APPLYING FOR THE GRANT. >> JUST PERMISSION TO SUBMIT THE

APPLICATION. >> THANK YOU FOR THAT

CLARIFICATION. >> EVERYBODY IN THE STATE IS APPLYING. THERE'S A CHANCE WE MAY NOT WIN WE FIGURED WE WILL THROW OUR NAME IN THE HAT AND PRAY FOR THE

BEST. >> THANK YOU.

>> AT THIS TIME I WILL OPEN UP THE PUBLIC HEARING IS THERE ANYONE WHO WOULD LIKE TO SPEAK FOR OR AGAINST ITEM 19? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

SEEING NO ONE I WILL CLOSE THE PUBLIC HEARING.

I WILL ACCEPT A MOTION AND A SECOND.

WE HAVE A MOTION BY COUNCILMAN BAILEY.

SECOND BY COUNCILMAN ESPINOZA. ANY FURTHER DISCUSSION?

WE ARE READY TO VOTE. >> ALL, YESSES.

[20.

Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Authorizing the City Manager to Execute a Professional Services Contract with Kimley-Horn and Associates, Inc. for Integrated Infrastructure Management Plan Program Management Services (Phase 1 — Program Setup) (Matthew Dane)

]

MOTION CARRIES. >> ITEM 20.

MATTHEW DANE IS GOING TO PRESENT THIS.

>> I GET TO TAKE THE MORE FUN ONE.

THIS CONVERSATION TODAY IS LARGELY DRIVEN BY COUNCIL HAS RECENTLY SET PRIORITIES ON WHAT IS MOST IMPORTANT TO THEM.

ONE OF THE BIG ONES IS INFRASTRUCTURE AS WATER UTILITY, WE STEPPED BACK FROM OUR NORMAL PROCESS AND JUST SAID, WHAT ARE SOME OPPORTUNITIES FOR IMPROVEMENT? HOW CAN WE MAKE THE SYSTEM BETTER WHEN IT COMES TO MANAGING INFRASTRUCTURE? WHAT CAN WE DO TO BETTER GET ON TOP OF THIS? WE WILL COVER WHAT THAT VISION IS. WHAT IS BEFORE YOU IS TO APPROVE A CONTRACT FOR PROGRAM MANAGEMENT.

BUT IN ORDER TO APPROVE THAT, I REALLY WANTED THE COUNCIL TO UNDERSTAND THE BROADER VISION OF HOW THIS FITS IN.

ABOUT, WHAT IS WATER UTILITIES DOING FOR INFRASTRUCTURE MANAGEMENT FOR PROPOSING FOR INFRASTRUCTURE MANAGEMENT MOVING FORWARD? IN THE END, WE WILL TALK ABOUT THE PIECE YOU ARE APPROVING TODAY AND HOW IT FITS IN THE BIG VISION. WE WILL LOOK AT PROGRAM WORK AREAS AND TALK ABOUT RESOURCE IDEAS ABOUT WHY WE THINK THE WAY WE DO ABOUT THIS PROCESS AND WHY IT MAY ADD SOME ADVANTAGE AND LOOK AT HOW WE ARE GOING TO ROLL THAT OUT.

SO AS WE GO BACK AND FORTH, AND WE THINK ABOUT JUST THE THINGS WE HAVE DONE IN THE PAST AND WHAT HAS WORKED WELL, ESPECIALLY AS WE TRY TO COMMUNICATE WHAT WE ARE DOING TO THE COUNCIL AND TO PUBLIC, IT REALLY SEEMED TO US THAT INFRASTRUCTURE MANAGEMENT BOILS DOWN TO THESE THINGS. WHAT IS BROKEN OR WHAT IS BREAKING ON ITS WAY TO BREAKING? WHAT DOES IT TAKE TO FIX THOSE, AND WHAT DOES IT COST? HOW ARE WE GOING TO PAY FOR IT? AS YOU GO THROUGH THIS PRESENTATION, YOU CAN COME BACK TO THESE. THESE ARE THE HEART OF WHAT YOU ARE TRYING TO ANSWER IF YOU WANT TO STAY ON TOP OF INFRASTRUCTURE MANAGEMENT. THIS IS OUR PROPOSAL FOR HOW TO TACKLE THAT. THE FIRST THING THAT WE TALKED ABOUT IS THE THING THAT CAN CREEP IN CERTAINLY MUNICIPAL GOVERNMENT, WE HAVE A PROBLEM THAT IS SORT OF BOILING AND BUILDING UP. WE HAVE PULLED THE TRIGGER ON FUNDING OR WHATEVER IT IS, AND WE GET IT FIXED.

WE MOVE ON TO THE NEXT BIG PROBLEM THAT KIND OF EATS US UP IN TIME AND CONSIDERATION. AND THAT SETS US UP TO KIND OF

[01:20:02]

SET IT AND FORGET IT TYPE THING. SO WE CAME BACK TO, WHATEVER PROCESS WE DO, IT'S GOT TO BE SIMPLER FOR YOU GO AND YOU FIX A PROBLEM, AND THEN YOU ARE MONITORING AND ASSESSING, HOW WELL DID IT FIX IT? HOW IS THIS MOVING TO THE FUTURE AND ALL THE REST? THESE KIND OF SIX STEPS ARE GOING TO BE HOW WE TRY TO PUT ALL OF OUR INFRASTRUCTURE INTO A CYCLE OF MAKING IMPROVEMENTS, MONITORING CONDITION, MONITORING PERFORMANCE, HOW ARE WE ANALYZING THAT? HOW DO WE PRIORITIZE THE NEEDS, DEVELOPMENT PLAN AND EXECUTE THAT PLAN? HISTORICALLY, YOU KIND OF GOT FOUR MAJOR AREAS FOR HOW YOU DO THIS.

WHAT WE CALL MASTER PLANNING, THAT IS REALLY JUST LONG RANGE PLANNING. ANYTHING YOU DO AND YOU ARE LOOKING AHEAD TO TRY TO BE READY FOR THE FUTURE.

ASSET MANAGEMENT IS WHAT WE CALL IT IN WATER UTILITIES.

THAT IS REALLY THE ONGOING CHECKS ON HOW IS IT DOING? ARE WE DOING INSPECTIONS? WHEN WE DO PREVENTATIVE MAINTENANCE, IS IT MOVING FORWARD THE WAY WE EXPECTED IT TO. THIS IS CIP FOR US.

MAKING MAJOR IMPROVEMENTS IN INVESTMENTS IN THE INFRASTRUCTURE FOR THE LAST PIECE IS THE THIRD QUESTION.

HOW ARE WE GOING TO PAY FOR IT? IS THE RATE PLAN WE'VE BEEN DOING GOSH WE'VE BEEN COMING OFF THE PREVIOUS FIVE YEAR RATE PLAN THAT COME FOR OUR COMMUNITY WE TAKE ALL THOSE AND SPREAD THEM ACROSS THE SIX STEPS OF THE CYCLE.

WE COLLAPSE THEM DOWN TO THAT DARK BLUE LINE AND SAY, HOW DO WE GET THIS INTO ONE CONTINUOUS PROCESS THAT IS ALWAYS UNDERWAY AND ALWAYS LIVING? THE THING FOR US AS WE'VE KIND OF GOT FOUR MAJOR AREAS IN OUR UTILITY WE THINK OF THEM AS DOMAINS. YOU HAVE A WATER TREATMENT DOMAIN AND WATER DISTRIBUTION AND WASTEWATER TREATMENT AND WASTEWATER COLLECTION. ANYTHING WE DO IS LIKE YOU'VE GOT THESE FOUR SPECIALTIES. YOU TAKE THOSE SAME ONE INTEGRATED CYCLE, AND NOW YOU SPREAD THAT BACK OUT ACROSS THE DOMAINS TO JUST LOOK AT WHAT WORK NEEDS TO BE DONE HERE AND THERE. THESE BOXES AREN'T ALL INCLUSIVE, BUT THERE ARE JUST A FEW NOTES TO GIVE YOU AND THE PUBLIC AN IDEA OF THE TYPES OF THINGS THAT WE WOULD BE WORKING ON IN EACH OF THOSE STEPS. A FEW THINGS I THINK ARE IMPORTANT TO SORT OF TOUCH ON AS FAR AS, WHAT IS DIFFERENT? IN THE PAST WHEN WE DO PLANNING, WE WORK WITH THIRD PARTIES TO COLLECT ALL THE DATA AND RUN A BUNCH OF ANALYSIS AND COME UP WITH A PLAN MOVING FORWARD. ULTIMATELY, THAT LANDS IN A BINDER THAT IS OUR GUIDING DOCUMENT AS WE WORK THROUGH INFRASTRUCTURE. THAT KIND OF COMES BACK TO THIS IDEA OF SET IT AND FORGET IT. BY THE TIME YOU GET TO THE END OF EVERY PLANNING PROCESS YOU PUT ALL THE WORK IN AND DO EVERYTHING YOU NEED TO THERE'S A TENDENCY FOR A BINDER TO GO ON A SHELF AND COLLECT DUST. COULD YOU TRY TO BE GOOD AT STAYING ON TOP OF THAT. AND SO MOVING TO A LIVE ENVIRONMENT WHERE ALL OF THIS PLANNING AND ANALYSIS SITS IN A PLACE WHERE IT IS CONSTANTLY FEEDING NEW DATA, WE LOOK AT THAT DATA ON A REGULAR BASIS. SOME THINGS WE ARE HOPING TO ACCOMPLISH IS DEVELOPMENT READINESS.

THE PUBLIC AND COUNCIL ARE WELL AWARE THAT WE ARE GOING THROUGH A GROWTH PERIOD. DEVELOPMENT IS A KEY PART OF THAT. WE LOOK FOR OPPORTUNITIES TO BE MORE EFFICIENT WHERE WE CAN IN THE DEVELOPMENT PROCESS TO WORK WITH CONTRACTORS AND DEVELOPERS. HAVING A LIVE SET OF DATA OF KNOWING WHERE OUR INFRASTRUCTURE IS AT AND WHAT CONDITION IT IS IN GIVES US A BETTER READINESS TO RESPOND TO THOSE.

WE ALSO TALK ABOUT THE SECOND QUESTION.

WHAT IS BREAKING AND WHAT IS BROKEN? INTEGRATING OUR FIELD COLLECTION DATA INTO THE BROADER PLANNING PROCESS, YOU CAN ALSO IMAGINE SOMETHING LIKE A LIVESTOCK TICKER IF YOU ARE SOMEONE WHO'S KEEPING UP WITH STOCKS, YOU CAN SEE THEY ARE GOING UP AND DOWN. WE WANT TO HAVE SOMETHING LIKE THAT FOR OUR INFRASTRUCTURE. WE REALLY THINK THE MODEL STREETS PROPOSED WHERE THEY HAD SCORES ON THE STREETS, AND IT GIVES YOU SOME QUANTIFIABLE BASIS FOR UNDERSTANDING, WHAT ARE THEY DOING? HOW QUICKLY ARE THEY DEGRADING OR NOT? WE ARE KIND OF MODELING THAT.

STAFF OWNERSHIP AND INSTITUTIONAL CONTINUITY.

THIS IS A BIG ONE. ONE OF THE THINGS THAT HAS MADE THIS A CHALLENGE IS THE SET IT AND FORGET IT IDEA.

WE WANTED TO BUILD AN INTEGRATED SYSTEM THAT BY NECESSITY REQUIRES IN-HOUSE RESOURCES TO FEED THAT DATA AND LOOK AT THAT DATA. SO ONE OF THE CHALLENGES, IS A THIRD PARTY HELPS US TO PUT A BINDER TOGETHER FOR THE QUESTION, IS HOW WELL WAS IT READ BY STAFF? HOW WELL WAS IT UNDERSTOOD? EVEN THE FIELD GUY WHO IS OUT THERE DOING A CONSTRUCTION PROJECT ON A WATER LINE, DOES HE UNDERSTAND HOW THAT WORK FITS INTO THE BIGGER PICTURE? THAT CREATES CHALLENGES. IN THIS INSTANCE, WE ARE LOOKING TO BUILD SOMETHING LIVING THAT EVERY BIT OF DATA THEY FEED INTO IT, THEY'VE GOT SOME KIND OF FEEDBACK TO UNDERSTAND HOW THEY FIT INTO THE BIGGER PICTURE. THE ALWAYS CURRENT PLANNING

[01:25:03]

FOUNDATION. THE MASTER PLANS BECOME A SNAPSHOT FOR YOU GO FOR A DECADE BEFORE YOU GET THE NEXT ONE AND YOU ARE LIVING OUT THE OLD SNAPSHOT.

WE HOPE THAT WE CAN KEEP THESE ALIVE AND CURRENT SO THAT STAFF OWNERSHIP CAN GET A CLEAR IDEA OF WHERE WE ARE AND WHERE WE ARE GOING. I WANTED TO TOUCH JUST QUICKLY AS THIS IS GOING TO COME UP IN OTHER PLACES.

WE AS AN ORGANIZATION HAVE STARTED TO LOOK AT WHAT OPPORTUNITIES AI TOOLS PROVIDE IN THE WORK PLACE.

OUR OVERALL APPROACH HAS BEEN TO LOOK AT WAYS THAT IT CAN AUGMENT OUR EXISTING STAFF TO BE MORE EFFICIENT, TO GET MORE WORK DONE, TO REACH OPPORTUNITIES THAT BEFORE WERE HARD TO GET TO.

IF YOU THINK ABOUT, WHEN YOU HAVE A THIRD PARTY, PUT TOGETHER A REPORT PICK SOME AMOUNT OF THAT CONTRACT HAS TO PAY FOR FORMATTING THE REPORT, PUTTING IT IN BINDERS AND GETTING THE FILE. THERE'S A LOT OF THESE THINGS THAT WE THINK WE ACTUALLY NOW COULD BRING IN-HOUSE WITH AI TOOLS THAT TAKE SOME OF THAT BURDEN AND LETS US GET CONSULTANTS FOCUSED ON THEIR ENGINEERING EXPERTISE BECAUSE THAT'S THE REAL VALUE THE CITY GETS FROM WORKING WITH THEM IN SOME OF THESE ANCILLARY PIECES CAN BE AUTOMATED OR WORK IN-HOUSE. CONTINUOUS INTELLIGENCE IN THE INTEGRATED AND NOT SILOED. THOSE GO HAND-IN-HAND IF YOU WANT TO TAKE YOUR BILLING SOFTWARE AND YOU WANTED TO TAKE YOUR WORK ORDER SOFTWARE THAT IS DIFFERENT THERE'S A LOT OF ANALYSIS WE COULD DO BY THOSE DATA COMING TOGETHER IN ONE PLACE. BEFORE SOME OF OUR AI TOOLS, YOU WERE LOOKING AT SOME CUSTOM SOFTWARE INTEGRATION AND HAVE SOMEBODY SET SOMETHING OUT. IT'S A BIG EXPENSIVE PROCESS.

WE THINK NOW THAT WE CAN BUILD SOME THINGS.

WE HAVE BEGUN TESTING THIS ALREADY WHERE IF YOU CAN EXPORT THAT DATA IN SOME SCHEDULED WAY, WE LAND IT IN SOME COMMON PLACE.

NOW WE HAVE OPENED UP THE OPPORTUNITY TO HAVE THIS COMMON DATA BASE WHERE DATA TALKS TO EACH OTHER AND WE CAN ANALYZE IT. THE LAST THING IS INSTITUTIONAL MEMORY DEVELOPMENT THE COMMON DATABASE THAT'S COLLECTING THE DETAILS ABOUT OUR UTILITY, THAT BECOMES TRAINING FODDER FOR A LOT OF THE CONVERSATION AROUND WATER UTILITIES IS A GREEN WORK FORCE FOR THE INSTITUTIONAL SKILLS RETIRING, WHAT ARE WE DOING TO HELP TRAIN AND DEVELOP SOME OF OUR YOUNGER STAFF, OUR NEWER STAFF? THIS OPENS UP THE OPPORTUNITY THAT WE HAVE ALREADY BEEN TESTING THOSE. WHETHER IT IS DESIGNING KIND OF A VIDEO GAME VERSION OF A WASTEWATER PLANT.

SO A NEW EMPLOYEE GOES TO WORK AT THE WASTEWATER PLANT CAN SIT IN CONTROL PARAMETERS AND UNDERSTAND HOW CHANGING OXYGEN CHANGES WHAT HAPPENS IN THE AERATION BASIN AND OTHER THINGS WE'VE ALREADY DONE WE'RE GONNA LOOK AT OPPORTUNITIES TO CONTINUE THAT BY HAVING THIS DATA IN A COMMON DIGITAL FORMAT.

ONE OTHER TOUCH POINT OR ADVANTAGE WE SEE HERE, IN THE PAST, YOU'VE GOT FOUR DEMANDS. WE'VE TRIED TO WORK THROUGH COORDINATE A GOOD EXAMPLE IS POPULATION DEMAND PROJECTIONS.

WE DON'T NEED TO DO FOUR DIFFERENT POPULATION DEMAND PROJECTIONS. WE NEED TO REALLY HAVE ONE SET OF DATA THAT NOW INFORMS ALL OF THE OTHERS AND SO THESE EIGHT ARE SOME EXAMPLES THAT WE SEE THAT REALLY YOU ARE DOING THE SAME THING ACROSS ALL THESE DIFFERENT AREAS.

WHY DON'T WE DO IT IN ONE PLACE AND ROLL THAT OUT AND LET THEM DO THE ANALYSIS AND DEVELOP IT, AND THEN IT ROLLS BACK UP INTO A KIND OF A COMPREHENSIVE PACKAGE. WE WILL TOUCH A LITTLE BIT ON THE WORK AREAS. WE'VE GOT A PROGRAM MANAGER PER YOUR OVERALL FUNCTION IS AGAIN, THIS IS AUGMENTING STAFF FOR US.

TO BE ABLE TO PUT ALL THIS TOGETHER AND TO GET IT STARTED UP, THEIR ROLE IS TO SORT OF BE A TRAFFIC COP AND WATCH AS DATA IS COMING IN BIG DATA IS GOING OUT.

THIS IS WHAT IS DUE. IT NEEDS TO LOOK LIKE THIS BASED ON WHAT WE HAVE WORKED WITH THEM TO DEVELOP.

THIS IS THE STANDARD WE WANT TO SEE.

THIS IS HOW THIS SHOULD BE DELIVERED.

IT GOES OUT TO THE DOMAINS, THEY DO THE HARD WORK OF THE ANALYSIS FIGURING OUT WHAT IS NEEDED. THEY GET A PRODUCT, AND IT FEEDS BACK IN. WE WORK WITH OUR PROGRAM MANAGER TO SAY, WHAT IS THE BEST WAY TO PACKAGE THIS UP AND DELIVER IT TO STAKEHOLDERS, THIS CITIZENS, TO WHOEVER SO THEY CAN GET A GOOD UNDERSTANDING AND KNOWLEDGE OF WHAT'S GOING ON IN OUR SYSTEM. AND THEN YOU'VE GOT THE FOUR DOMAINS. AND THEN RATE DESIGN AND ASSET MANAGEMENT ARE TWO OTHER AREAS. WHEN YOU HAVE SEEN THE REFERENCES TO CROSS DOMAIN OR CROSS CUTTING OR SOME OTHER TERMS IN HERE, THIS HAVE SOMETHING TO DO WITH ALL FOUR AREAS. THEY DON'T SIT NEAT.

IT'S LIKE THE EIGHT ITEMS WE SAID BEFORE.

THEY TOUCH IN SOME WAYS ON ALL FOUR.

THEY ARE BIG ENOUGH THAT THEY DESERVE THEIR OWN ATTENTION.

THAT IS HOW WE HAVE SUBDIVIDED ALL OF THIS WORK OUT.

SO THIS IS A DIFFERENT WAY OF LOOKING AT THESE WORK AREAS.

IT IS WORTH TOUCHING ON HERE. WE'VE GOT THE PROGRAM MANAGEMENT THAT'S GOING TO HELP COORDINATE THIS.

WE HAVE SIX CONSULTANT TEAMS THAT WE HAVE GREAT EXPERIENCE WITH. FIVE OF WHICH HAVE A LOCAL PRESENCE OF SOME KIND. AND SO WHEREAS BEFORE CORRECT YOU WERE KIND OF PICKING A GROUP OR A SCOPE.

[01:30:01]

IN THIS CASE, WE ARE REALLY BUILDING A ROSTER BECAUSE WE ARE LOOKING TO EVERYTHING EVERYBODY HAS DONE AND WITH THEIR HISTORY.

WE'LL SEE HOW THIS FITS IN A TIME LINE SO ULTIMATELY WHAT WE'RE GOING TO PUT TOGETHER IS WHAT WE THINK IS THE BEST ROSTER SO PROVIDE THIS INTEGRATED INFRASTRUCTURE MANAGEMENT PLAN.

AND THE FIRST PIECE OF THAT THAT WE'RE BRINGING TO YOU IS THE PROGRAM MANAGEMENT PIECE. I'M GOING TO PUT A BIG ASTERISK ON THIS UP FRONT, ALL THESE GRAPHS ARE VERY QUALITATIVE.

WHAT WE WRESTLED WITH IS HOW DO WE HELP EVERYBODY UNDERSTAND WHAT OUR NORMAL PROCESS IS LIKE IN TERMS OF OUR WORKLOAD AND HOW IT GOES UP AND DOWN. SO THESE ARE NOT MEASURED, RIGHT, BUT THEY'RE MEANT TO KIND OF ANIMATE AN IDEA OF WHAT OUR PROFESSIONAL LIFE IS LIKE FOR WATER UTILITIES AND MANAGING INFRASTRUCTURE. THE FIRST ONE IS RATE STUDIES.

YOU KNOW THIS IS A FIVE-YEAR PROCESS.

FREQUENTLY AT THE END OF THAT FIVE YEAR WE CALL IN SOME CONSULTANT -- RATE CONSULTANT HELP BUT WE ALSO IN THOSE INTERIM PERIODS, WE MANAGE A LOT OF IT OURSELVES.

SO IT'S COLOURED BY A ROUGH IDEA OF HOW MUCH OF THAT IS OUTSOURCED AND HOW MUCH WE DO IN HOUSE.

THEN YOU CAN KIND OF SEE HOW OUR PEAKS GO UP AND DOWN BASED ON WORKLOAD. CIP IS ONE WE'RE BRINGING TO YOU. EVERY YEAR WE TRY TO HAVE A REFRESH FIVE-YEAR CIP. SOME YEARS WE DON'T HAVE TOO MANY SURPRISES, SOME YEARS SOME NEW INFRASTRUCTURE BROKE AND NOW WE'VE GOT TO WORK THAT INTO THE SYSTEM.

CIP IS ALMOST ENTIRELY MANAGED IN HOUSE, SOMETIMES IF WE NEED TO COST OUT PROJECTS OR THE OTHER, WE HAVE CONSULTANTS HELP US WITH THAT. BUT BY AND LARGE THIS IS MANAGED IN HOUSE AND IT'S A LITTLE UNPREDICTABLE YEAR TO YEAR AS FAR AS THE EFFORT NEEDED. ASSET MANAGEMENT, I WANT TO KIND OF JUST MENTION ON THIS THAT WE ARE NOT FULLY IMPLEMENTED IN AN ASSET MANAGEMENT PLAN. WE ARE AT THE STAGE WHERE WE'VE ACQUIRED THE TOOLS THAT WE WOULD NEED TO START, SO WHAT THIS GRAPH REALLY REPRESENTS IS IF WE DECIDED TO STARTED TO, JUST THIS PIECE ON ITS OWN, THIS IS KIND OF WHAT IT WOULD LOOK LIKE.

WE WOULD NEED A LOT OF CONSULTANT HELP TO GET SET UP, SET SOME STANDARDS, WHEN YOU GO TO INSPECT A MANHOLE, WHAT ARE YOU GOING TO LOOK FOR AND HOW IS IT GOING TO BE SCORED? THEY HELP US LOOK AT ENGINEERING BEST PRACTICE AND SAY THIS IS A WAY TO TRACK CONDITION AND THEN WE IMPLEMENT MOVE ON, THAT'S KIND OF WHAT THIS GRAPH REPRESENTS.

AND THE LAST ONE IS THE MASTER PLANS, A LOT OF CONSULTANT HELP, VALUABLE ENGINEERING ANALYSIS THAT THEY BRING TO THAT.

WE'VE GOT SOME REVIEW AND OVERSIGHT AND THESE ARE ROUGHLY TEN YEARS. WE'RE A LITTLE SHY OF TEN YEARS FOR OUR CURRENT ONES. BUT THE MAIN TAKEAWAY HERE IS IT SHOWS -- THESE ARE BIG SPIKES IN EFFORT, THEY'RE LARGELY OUTSOURCED AND SO YOU TAKE ALL OF THOSE THINGS AND STACK IT UP, AND THIS IS A GRAPH THAT KIND OF SUMMARIZED WHAT IT FEELS LIKE

COMING INTO WORK SOMETIMES -- >> GERVEEVERYONE GOT THAT ONE? ILLUSTRATE KIND OF WHAT IT'S LIKE, BUT THE BROWN TELLS YOU -- THIS IS WHAT NORMAL WORKFLOW IS LIKE IN THE LAST SAY DECADE OR SO OF HOW WE'VE OPERATED. AND THEN YOU CAN SEE HOW THERE'S A BALANCE BETWEEN IN HOUSE AND OUT OF HOUSE EFFORT, WHO IS DOING WHAT. THAT GIVES YOU A GLIMPSE INTO WHERE WE'RE AT. THIS IS WHAT WE BELIEVE THE INGRADE MANAGEMENT PLAN OFFERS. THERE IS GOING TO BE A HIGH UP FRONT, GET IT BUILT, GET IT STARTED, WE NEED TO HAVE SOME OUTSIDE HELP, BECAUSE OF TIME LINE BUT ALSO BECAUSE OF EXPERTISE. AND THEN ONCE THAT'S BUILT THE WHOLE PRINCIPAL HERE IS THAT YOU'RE GETTING OUR FIELD STAFF, OUR OWN IN-HOUSE ENGINEERING TEAM, GETTING THEM ENGINEERED IN THIS MONITORING PROCESS, THE SIX STEPS THAT WE TALKED ABOUT IN A WAY THAT A LOT OF THAT BECOMES OUR STAFF FEEDING THAT AND THEN IT'S THESE MOMENTS OF ANALYZING SOMETHING WEIRD IS GOING ON HERE, WE NEED TO HELP FIGURE OUT A SOLUTION TO THIS BROKEN INFRASTRUCTURE THAT WE'RE STILL GOING TO HAVE TO OUTSOURCE SOME OF THAT TO OUR CONSULTANTS. SO THIS IS A QUALITATIVE VISION OF ONE OF THE REASONS WE THINK IT'S IMPORTANT.

IT STABILIZES THE WORKLOAD. IT GIVES US SOMETHING PREDICTABLE. IT'S AN OPPORTUNITY FOR THINGS THAT MAKE SENSE FOR US TO DO IN HOUSE WE CAN DO.

AND ULTIMATELY PART OF -- ONE OF THE BIG THINGS THAT I CARE MORE ABOUT IS IT GIVES OPPORTUNITIES FOR OUR EMPLOYEES TO GROW IN THEIR EXPERTISE AND THEIR KNOWLEDGE AND TO BE MORE [INDISCERNIBLE] TO THE BIGGER VISION THAT WE'RE TRYING TO DO IN THE WATER UTILITY. WE PUT A FEW DETAILS HERE BUT THE BIG THING -- THIS LAYS THE GROUND FOR IS IS WE'VE GOT SOME BIG ITEMS COMING AND BIG COUPLES ARE ALWAYS A PROBLEM IF YOU'RE REACTIVE AND THE MORE PROACTIVE YOU CAN BE, THE EASIER IT IS TO BEAR THAT BURDEN. SO WE'VE BEEN TALKING ABOUT THAT. COUNCIL KNOWS THIS FOR A COUPLE YEARS WE'VE SAID WE'VE GOT SOME BIG CHALLENGES ON THE HORIZON, WE'RE TRYING TO START PLANNING NOW, AND SO THIS MEANS TWO

[01:35:05]

THINGS: ONE WE THINK IT'S THE VALUE OF DOING A MORE ROBUST PLANNING PROCESS LIKE WE'RE PROPOSING TO YOU.

AND TWO, THAT THERE ARE SOME TIMING CONSTRAINTS.

WE'RE STARTING TO FEEL THE HEAT OF SOME OF THESE DECISIONS COMING AND SO THE QUICKER WE CAN GET THE PLANNING DONE, THE BETTER PREPARED WE ARE WHENEVER IT'S TIME TO TAKE ACTION.

AND THIS IS -- IT'S KIND OF A ROUGH TIME LINE.

NOW WE'RE GETTING INTO SPECIFIC INTO HOW ARE WE GOING TO ROLL THIS ONE OUT. WE'RE TRYING TO GET THIS PROGRAM MANAGEMENT AS WELL AS OUR DOMAIN CONSULTANTS, THESE OTHER LOCAL GROUPS, GOING TO TRY TO GET THEM ON BOARD THIS MONTH AND THIS MIGHT SPILL INTO AUGUST, SO THAT EACH OF THOSE CONTRACTS AS WE DEVELOP THEM WILL COME TO YOU ALL.

THE BIG THING IS THAT BY SPRING OF NEXT YEAR, AT LEAST THE FIVE-YEAR PLANNING PORTION OF WHAT WE'RE DOING NEEDS TO BE LOCKED IN SO THAT WE CAN DO RATE PLANNING AND START TALKING ABOUT WHAT DOES IT COST TO TACKLE THIS AND FUND THE THINGS WE NEED TO BE FUNDED. AND THE REMAINDER OF THIS TIME LINE IS THERE ARE OTHER PIECES THAT ARE NOT TIME-CRITICAL AND WE CAN KIND OF LET THOSE FILL IN AFTER THAT CRITICAL DEADLINE IN SPRING NEXT YEAR. THE OTHER THING I WANT TO TRY TO DO IS GIVE YOU A SENSE OF THE DOLLARS WE'RE TALKING ABOUT.

YOU'RE JUST APPROVING A PROGRAM MANAGEMENT CONTRACT TODAY FOR $455,000 BUT WHAT ARE YOU REALLY KIND OF POTENTIALLY SIGNING UP FOR? AS WE TALKED ABOUT THIS NEW IDEA IT GENERATE AD LOT OF EXCITEMENT IN OTHER UTILITIES AND THE CONSULTANTS SAID WE HAVEN'T REALLY SEEN SOMEBODY TACKLE THIS AND IT MAKES A LOT OF SENSE. AND WE ALSO SAID DOLLARS WISE, WHAT ARE WE LOOKING AT. AND THERE WAS A RANGE OF GUESSES STARTING FROM SCRATCH THAT COULD BE 3 TO 6 MILLION, THAT'S KIND OF THE NET AVERAGE OF ALL THESE DIFFERENT FOLKS WE TALKED TO, SOME OF THEIR FEEDBACK. THERE'S A FEW THINGS TO KEEP IN MIND. WE'RE A LITTLE LESS THAN TEN YEARS ON OUR MASTER PLAN AND WE SEE ESPECIALLY TWO OF THE PLANS IN PARTICULAR HAVE A LOT OF MATERIAL THAT'S GOING TO ROLL FORWARD NICELY. SO THE FIRST THING WHEN I SHOW KIND OF THOSE PERCENTAGES BELOW, I'M SAYING YOU COULD START WITH A NUMBER FROM SCRATCH, BUT THERE'S A LOT OF DATA WE HAVE THAT IS NOT STARTING FROM SCRATCH.

AND THAT'S GOING TO BE SOMETHING WE PULL OUT OF THAT COST.

WE'VE ALSO GOT IN-HOUSE ENGINEERING LABOR, FOUR OR FIVE YEARS NOW, KIND OF LOSING TRACK OF TIME BUT WE HAVE GONE FROM A SINGLE UTILITY ENGINEER TO A FEW LICENSE ENGINEERS, EITS AND ENGINEERING ANALYSTS ON STAFF. WE'VE BEEN ABLE TO SHOW A REAL STRONG BUSINESS CASE OF HAVING SOME OF THAT.

THERE'S SOME LOW HANGING FRUIT THAT WE WERE ABLE TO DO IN HOUSE IN A VERY COST-EFFECTIVE WAY SO THAT'S A TEAM THAT NOW IN MY MIND IS ONE OF THE FOLKS THAT HAVE A SEAT AT THE TABLE TO DO SOME OF THIS WORK. SO WE LOOK AT EVERY OPPORTUNITY TO SAY WHAT CAN WE GRAB AND DO IN HOUSE, WHAT'S GOOD FOR US NOT JUST FINANCIALLY BUT EVEN OPERATIONALLY, THAT THESE ESPECIALLY YOUNG ENGINEERS ARE GETTING EXPOSURE TO SOME OF THESE DIFFERENT EFFORTS? AND THEN THE LAST PIECE IS WE TOUCHED ON THE SLIDE WITH AI. WE DON'T HAVE A CLEAR SENSE OF WHERE ALL WE'RE GOING TO USE IT BUT WE'VE ALREADY BEGUN TO DO THAT FOR SOME OF OUR INTERNAL PROCESSES.

IT'S SOMETHING THAT TOOK MORE TIME TO DO WHERE IT'S DIFFICULT, WE'RE ABLE DEVELOP A TOOL THAT HELPS US STREAMLINE IT, MAKE IT MORE EFFICIENT OR WE COULD GET MORE OUT OF THE ANALYSIS THAN WHAT WE COULD PREVIOUSLY. SO WE DO ANTICIPATE THAT PLAYING A ROLE IN HOW WE'RE ABLE REDUCE SOME OF THE OUTSOURCED COSTS IN THIS EFFORT. THE OTHER THING IS, LIKE SOME OF YOU, THAT'S A BIG DOLLAR FIGURE, WHAT BOTHERS ME IS WHEN YOU HAVE A BIG DOLLAR FIGURE THAT'S NOT GOING TO INFRASTRUCTURE.

TO ME THAT DESERVES A HIGHER LEVEL OF SCRUTINY THAN WHEN YOU JUST USE A HIGH DOLLAR ON INFRASTRUCTURE SO WE'RE GOING TO DESIGN THESE SCOPES TO HAVE LOGICAL OFF-RAMPS.

SO IN OTHER WORDS WE'LL BE ABLE TO GET THROUGH SAY A FIRST PHASE OF WORKING WITH THE CONSULTANTS, OUR IN-HOUSE TEAM AND WE'LL GET A DELIVERABLE PRODUCT THAT DOES WHAT WE NEED IT TO, THAT CHASE S CLEAR VALUE. AND SAY THERE'S ECONOMIC DOWNTURN, BUDGET SHIFT, WHATEVER IT IS WHERE WE SAY WE'RE STARTING TO HAVE SOME CONCERN ABOUT THE AMOUNT OF MONEY WE'RE SPENDING ON PROFESSIONAL SERVICES RATHER THAN INFRASTRUCTURE, THEN THESE WILL BE PHASED IN A WAY THAT WE HAVE A CLEAN OFF-RAMP, WE STILL GET GOOD VALUE FROM WHAT WE'VE DONE.

KNOW WEST NOW HAVEWE KNOW HAVE E WE GOING TO DO SOME MORE IN-HOUSE, ARE WE GOING TO LOOK FOR CUTS WHERE WE CAN, WHATEVER THAT FUTURE SCENARIO IS, THE MAIN TAKEAWAY IS THE SCOPES ARE DESIGNED FOR FLEXIBILITY SO THE COUNCIL COMES ACROSS ANY ISSUES IN THE FUTURE, WE'VE GOT THE ABILITY TO BE FLEXIBLE.

OKAY, SO THAT GIVES YOU THE BIG PICTURE VISION OF THE PLAN, SOME SPECIFICS. THIS PHASE 1 IS THE BIGGER PART

[01:40:01]

OF PROGRAM MANAGEMENT. THEY'RE HAVING TO SPRINT WITH US. THERE'S GOING TO BE A LOT OF WORK DONE IN THE NEXT 60 DAYS AND THEY'VE ALREADY STARTED KIND OF GAMING OUT SOME OF THAT, TALKING TO US AND GETTING -- WE'RE WORKING ON A LOT OF THIS, WE'LL GET PRE-ASSESSMENT, WHAT ARE SOME OF THE SCOPING FEEDS THAT WE CAN TAKE TO DOMAINS, WE CAN TALK TO THEM ABOUT IT THE POPULATION DEMAND PROJECTIONS NEED TO AT LEAST BE STARTED AND UNDERSTOOD, BUILDING THIS UNIFIED FRAMEWORK, HOW DO YOU TAKE ALL THESE DIFFERENT DOMAINS -- HOW DO YOU COMPARE WATER TREATMENT PROJECTS, PROPOSAL TO A PIPELINE -- A WASTEWATER MAIN PROPOSAL, HOW ARE THOSE GOING TO RANK AGAINST EACH OTHER AND WHAT'S YOUR CRITERIA, SO WHAT DO WE NEED TO KNOW FROM THE ENGINEERING ANALYSIS TO ACTUALLY FEEL CONFIDENT ABOUT THAT? THE SHARED DATA AND COLLABORATION ENVIRONMENT, WHERE ALL THIS WILL SIT, ULTIMATELY WE'VE GOT THIS COMMON DATABASE WHERE THIS IS DATA THAT'S MEANT TO BE USED BEYOND JUST THIS PLANNING EFFORT. AND THEN COORDINATING MODEL AND MASTER SCHEDULE. I'LL JUST PUT A NOTE HERE.

I WON'T MAKE ANY STRONG PREDICTIONS.

THE WAY WE'RE TACKLING THE COST PIECE, WE SAID ALL THESE LEVERS WE CAN PULL TO CONSIDER REDUCING COSTS, AND SO WE SCOPE THOSE IN A WAY TO SAY THIS IS EVERYTHING THAT NEEDS TO BE DONE, JUST KNOW THAT WE'RE GOING TO BE STRIVING TO LOOK AT OPPORTUNITIES TO MAYBE DO SOME OF IT IN HOUSE OR DIFFERENT WAYS TO DO THINGS SO THAT WE FINISH A PHASE 1 SCOARNTION IT'S 1 SCOPE, IT'S TIME TO DO PHRASE 2, WE'RE GOING TO REPORT BACK ON PHYSICAL PHASE 1, HERE IS WHAT WE DID AND HERE IS WHAT WE SPENT.

AND SO THE GOAL IN EACH OF THESE IS THAT WE'RE GOING TO COME IN UNDER, THAT THOSE SAVINGS ARE ROLLING FORWARD TO THIS PROCESS AND WE CAN TRACK TO SEE -- IT'S ALMOST GOING TO BE LIKE A VIDEO GAME -- WE'RE GOING TO GAMIFY TRYING TO KEEP UP WITH WHAT IS IT COSTING AND HOW CAN WE GET THAT AS TIGHT AS WE CAN? AND THEN JUST A FEW NOTES ABOUT THE PROGRAM MANAGER IN PARTICULAR, THEY ARE AN AUGMENT TO US.

THEY'RE A TRAFFIC COP BASED ON WHAT WE SAY NEEDS TO BE DONE.

YOU CAN ALMOST THINK OF THEM AS ANOTHER ASSISTANT DIRECTOR ON MY TEAM THAT IS LIVING AND BREATHING THAT AND HELPING FIGURE OUT WHAT WE NEED TO DO AND NOT DO.

COUNCIL HAS APPROVED A SOFTWARE FOR RATE MODEL AND RATE DESIGN, WE'RE GOING TO DO THAT ALL IN HOUSE SO WE DO NOT ANTICIPATE ADDITIONAL CONSULTANT DOLLARS SPENT ON DEVELOPING THE RATE PLAN. THAT'S A PIECE THAT WE'VE GOTTEN GOOD AT IT AND WE THINK THAT WILL ALSO INCLUDE A COST OF SERVICE STUDY. AND THEN FINAL CIP INTEGRATION IS A LATER PHASE SO WE'RE GOING TO GET THE FIVE YEAR CIP SO WE CAN DO RATE DESIGN. BUT WE'VE GOT TO BUILD A TOOL, THAT THE MAYOR CAN PULL UP HIS PHONE, HE CAN LOOK AND SEE HERE IS WHAT'S COMING UP ON THEIR PLATE.

THIS IS WHAT THAT CIP PROJECT IS, HERE IS WHERE IT'S AT IN TOWN, HERE ARE SOME IMAGES. THAT KIND OF A USER EXPERIENCE IS ULTIMATELY WHAT WE'RE TRYING TO LAND THIS IN, IT'S NOT JUST FOR US TO KNOW WHAT'S COMING, THIS IS FOR EVERYBODY REGARDLESS OF WHERE THEY SIT IN OUR COMMUNITY TO HAVE AN EASY WAY TO UNDERSTAND, THIS IS WHAT THEY'RE DOING, THIS IS WHERE MY DOLLARS ARE GOING, THIS IS WHAT THE PROGRESS IS.

SO I'M OPEN TO ANY QUESTIONS. >> QUESTIONS?

>> YEAH. WITH THE BUILT-IN OFF-RAMPS, FIRST THAT'S -- I'M VERY GLAD THAT YOU PUT THOSE IN THERE.

SAY WE EXPERIENCE ECONOMIC DOWNTURN, WE TAKE THE FIRST OFF-RAMP. WE DON'T KNOW HOW LONG IT'S GOING TO LAST, BUT NOW WE'RE GETTING BETTER, WE'RE READY TO RESTART THE PHASE. WHEN RESTARTING OR REJOINING THE PHASES, WILL YOU HAVE TO SPEND MORE TIME TO ANALYZE IF MORE TECHNOLOGICAL ADVANCES WOULD HAVE MODIFIED OR CHANGED PHASE 1 THAT ARE NOT COMPATIBLE WITH THE EXISTING PHASES?

WAS THAT CONSIDERED? >> IT'S A POSSIBILITY AND ONE THAT WE'RE THINKING ABOUT BUT IT SEEMS UNLIKELY.

BECAUSE OF SOME OF THE TECHNOLOGICAL ADVANCES THAT ARE PERTINENT TO THIS PROGRAM, THOSE ARE THE SAME ONES WE'RE USING AND THE REST -- AI BEING A GOOD EXAMPLE OF HOW THAT'S TOOLED, HOW IT WORKS, WHAT IT'S GOING TO LOOK LIKE.

WE'RE STAYING ON TOP OF THAT FOR REASONS THAT EVEN EXIST OUTSIDE OF THIS PLAN. THAT BEING SAID I DON'T KNOW WHERE ALL THAT'S GOING TO GO AND WHAT THAT MIGHT LOOK LIKE BECAUSE BUT IT'S SOMETHING THAT WE WOULD STAY CURRENT WITH AND

KIND OF EVALUATE AT THAT TIME. >> BUT AT THIS TIME, LOOKING AT THE OFF-RAMPS, IT SHOULD JUST BE SMOOTH TRANSITION BACK INTO --

>> YEAH. >> AND PHASE 1 ROUGHLY REPRESENTS THE SPRINT THAT WE HAVE TO DO TO GET A FIVE-YEAR PLAN TOGETHER. TO ME, THAT'S THE CORE THAT IS HIGHLY NEEDED BASED ON EVERYTHING THAT'S COMING DOWN

[01:45:01]

THE PIKE, WHERE YOU HAVE SOME FLEXIBILITY ON TIMING AND WHAT WE HAVE TO DO EVERYTHING SUBSEQUENT TO THAT.

SO AS WE BRING THOSE FUTURE CONTRACTS BE THINKING ABOUT THIS IS THE WORK THAT GETS US TO SPRING NEXT YEAR AND HOPEFULLY ANSWERS THE QUESTIONS WE NEED TO ANSWER ABOUT WHAT ARE WE DOING AND HOW ARE WE GOING TO PAY FOR IT.

>> WHAT'S THE RATE MODEL DESIGN WORK FOR THE NEXT FIVE YEARS? AND THE REASON I'M ASKING THE QUESTION IS YOU HAD A SLIDE EARLIER THAT TALKED ABOUT PLANNING CHALLENGES FOR MAJOR PROJECTS LIKE [INDISCERNIBLE] RESERVOIR [INDISCERNIBLE] AT WHAT POINT WILL WE MAKE DECISION ON THOSE TO GIVE YOU DIRECTION FOR DESIGNING A RATE PLAN THAT FUNDS THE PROJECTS?

>> I WOULD SAY THAT ONE ADVANTAGE I HAVE IS MOST OF THOSE LIKE THE P FOLLOWS, THEY'RE GOING TO HAPPEN SO IT'S MORE A QUESTION OF WHAT ARE SOME OF THE PARAMETERS TO KNOW HOW WE'RE GOING TO ACCOMPLISH IT. THERE ARE A COUPLE THAT ARE OPTIONAL AND COUNCIL CAN DECIDE CAN WE TAKE ON THIS BURDEN OR CAN IT WAIT? THE RATE DESIGN WORK HAS ALREADY STARTED. WE NEED TO GET SOME HARD -- AS HARD AS WE CAN -- HARD COSTS ON SO MANY OF THESE DIFFERENT PROJECTS. WE REFERENCED PFAS, HOPEFULLY WE CAN TIGHTEN WHAT THAT NUMBER TRULY IS.

FROM A RATE DESIGN PERSPECTIVE YOU DROP THOSE INTO THE MODEL.

WE'VE TALKED ABOUT THERE WILL PROBABLY BE A LITTLE BIT OF DEBT, YOU DROP THAT DEBT SERVICE IN.

FORTUNATELY THE REST OF OUR CIP IS STILL CASH FUND SOD WHEN ALL OF THOSE DOMAINS COME UP WITH A CIP LIST YOU PUT IT IN THE MODEL AND YOU SAY HOW FAR DOWN THE CIP LIST CAN YOU GO IN YEAR 1 BEFORE YOU RUN OUT? THAT'S YEAR 1.

THE PROJECTS ARE ALREADY RANKED BY THEIR NEED, SO I GUESS WHAT I'M SAYING IS THE RATE MODEL IS ALREADY MOSTLY BUILT.

WE'RE GOING TO DO A COST OF SERVICE STUDY TO MAKE SURE THAT RATES MATCH CUSTOMER CLASSES, WATER AND SEWER ARE FUNDING EACH OTHER, THEMSELVES APPROPRIATELY, THE LAST PIECE WILL BE WHEN WE GET THE CIP AND COST DATA, YOU JUST DROP THAT IN AND THEN YOU'RE JUST TURNING THE RATE KNOB TO SAY WHAT RATE DOES IT IN THIS TIME FRAME, LET'S DO A DIFFERENT TIME FRAME, THIS IS THE RATE YOU NEED. THOSE BECOME THE TWO KNOBS YOU THE BEST FIT FOR HAVING THE PUBLIC COVER THAT.

>> SO YOU'RE LOOKING FOR HAVING A RATE RECOMMENDATION FOR US IN

THE EARLY SPRING? >> YES, SIR.

>> AND SO THE ONES THAT ARE NOT DECIDED FROM THAT LIST, THOSE THEN NEED TO BE DECIDED BY THE END OF THE YEAR, BY THE END OF THE CALENDAR YEAR, IT SOUNDS LIKE?

>> YEAH, WE HOPE THAT WHEN -- USUALLY WHEN WE BRING Y'ALL RATE POSITIONS, WE BRING SCENARIOS SO LIKELY WE WOULD HAVE ENOUGH DATA TO UNDERSTAND THE COSTS OF THE OPTIONAL AND WE LAYER THOSE INTO THE RATE. SO IN THAT EARLY SPRING AND AS WE'RE STARTING TO TALK ABOUT BUDGET PRIORITIES, THAT WOULD BE THE TIME FRAME WHEN WE WOULD COME TO Y'ALL AND SAY HERE IS WHAT'S ON THE HORSE HORIZON, HEE WHAT WE THINK ARE THE BEST WAYS TO PAY FOR IT AND HERE ARE THINGS THAT ARE OPTIONAL SO THAT IF THIS IS TOO MUCH, HERE IS WHAT YOUR OPTIONS ARE FOR COUNCIL TO DECIDE WHAT TO CUT. THAT'S THE GOAL WHERE WHERE WE'LL ARRIVE IN THE SPRING NEXT YEAR, IS TO GIVE YOU ENOUGH THAT YOU CAN MAKE THOSE DECISIONS AND SEE WHAT'S COMING.

THANK YOU. >> FURTHER QUESTIONS?

>> YOU HAD MENTIONED THE MAYOR WAKE BEING UP IN THE MORNING AND SEEING -- AND THEN YOU BRIEFLY TALKED ABOUT HOW ANYBODY -- WOULD THIS BE SOMETHING THAT HELPS THE TRANS PAIRPS I OF TRAE EVERYBODY CAN SEE WHERE WE'RE -- WHAT WE'RE SEEING?

>> YES. THAT'S THE HOPE.

YOU KNOW, I'VE SEEN A FEW OTHER ENTITIES -- THEY HAVEN'T BEEN WATER UTILITIES BUT I THINK ONE OF THE BEST THINGS THAT THEY CAN DO IS SAY, YOU KNOW, FOR US IT WOULD BE HERE IS A TYPICAL BILL AND IF YOU TAKE THOSE DOLLARS, HERE IS WHAT WE'RE USING IT FOR IN VERY CLEAR TERMS. THIS MUCH GOES TO PAY FOR STAFF.

THIS MUCH GOES TO OUR CIP AND TO MESSAGE THAT OUT IN THAT WAY.

AND THEN WHEN THEY SAY CIP, WHAT DOES CIP MEAN, YOU WOULD CLIP, YOU WOULD TAP CIP AND IT WOULD SAY HERE IS YEAR 1, HERE IS THE PROJECTS THAT ARE CURRENTLY ACTIVE, HERE IS A FEW PICTURES AND WHERE WE'RE DOING THAT PROJECT.

THIS IS THEY SOUTH SIDE PLANT, HERE ARE SOME PICTURES IN THE PLANT. TO US THAT GETS A LOT AT THE HEART OF WHAT I THINK PEOPLE ARE WONDERING ABOUT.

SO THAT'S A PART OF THIS VISION, THAT IF WE GET THIS OUT OF A BINDER -- YOU KNOW TO DO THAT FROM A BINDER IS EXCEPTIONALLY

[01:50:01]

MORE DIFFICULT THAN IF WE HAD THIS LIVING IN A DIGITAL DATABASE WHERE WE CAN TAP INTO TO ENGAGE THE PUBLIC WITH SO

THAT'S THE HOPE. >> ANYONE ELSE?

THANK YOU, MATTHEW. >> THANK YOU.

>> NICE JOB. >> VERY GOOD WORK.

ALWAYS. AT THIS TIME I'LL OPEN UP THE PUBLIC HEARING. IS THERE ANYONE WHO WOULD LIKE TO SPEAK EITHER FOR OR AGAINST ITEM 20, PLEASE COME FORWARD AND

GIVE YOUR NAME FOR THE RECORD. >> TAMMY FOGEL, RESIDENT OF ABILENE AND I KNOW MY COMMENTS HERE ARE PROBABLY NOT REALLY RELEVANT TO EVERYONE SITTING ON THE DIAS.

HOWEVER, I DO FEEL LIKE IT NEEDS TO BE STATED.

AS A PERSON WHO HAS WATCHED THE SEPARATION OF OUR COMMUNITY INTO STAKEHOLDERS AND CITIZENS, I WOULD POLITELY REQUEST THAT YOU STOP USING THAT TERM. I KNOW IN THE BUSINESS WORLD WE'LL HEAR ABOUT THAT LATER, THAT STAKEHOLDERS ARE THOSE WHO ARE INVESTED IN THE COMMUNITY. WELL, I WOULD SAY THAT BY DEFAULT, ALL CITIZENS ARE INVESTED IN THE COMMUNITY AND WE NEED TO MAKE SURE THAT CITIZENS ARE COMMUNICATED WITH, NOT JUST STAKEHOLDERS. AND THE REASON WHY I SAY THAT IS BECAUSE I'M NOT A STAKEHOLDER. I WOULD NOT FIT IN THAT CLI BY YOUR CATEGORY.

SO THIS IS NOT FREE MONEY AND WHEN YOU SAY COMMENTS LIKE UNDERFUNDED -- AN UNFUNDED MANDATE, YOU MEANT EXACTLY WHAT I SAID YOU MEANT, IS THERE WAS NO PLANS TO FIX THIS PROBLEM EXCEPT FOR NOW THE MANDATE FROM THE FEDERAL GOVERNMENT.

SO MY POINT WAS YOU NEED TO START TAKING CARE OF THESE THINGS, BECAUSE THAT'S OUR JOB IS TO DO THE RIGHT THING BEFORE WE'RE REQUIRED BY HIGHER-UPS TO DO IT.

SO MAKE SURE THAT WORDS MATTER, STAKEHOLDERS, IT'S USED IN THE STATE LEVEL -- I'M SURE EVEN OUR PRESIDENT USES -- AS SOMEONE WHO HAS BEEN SHOWN TIME AND TIME AGAIN THAT I'M NOT A STAKEHOLDER, YOU NEED TO GO BACK TO WHAT OUR GOVERNMENT WAS FOUNDED ORANGES ON CITIZENSHIP. CITIZENS RESPECT MOTHERS, FATHERS, STUDENTS, EVERYBODY, THAT INCLUDES EVERYBODY.

STAKEHOLDERS DOES NOT. AND IT WOULD BE NICE THAT WE WOULD KNOW THAT OUR CITY DID THE RIGHT THING BECAUSE IT WAS THE RIGHT THING, NOT BECAUSE THEY WERE REQUIRED BY LAW TO DO IT.

THAT'S WHAT I'M LOOKING FOR. AND THOSE WHO STEP INTO THIS POSITION TO SERVE OUR CITY WELL IS TO DO WHAT'S RIGHT.

I'VE BEEN ON THAT FROM THE BEGINNING, DO WHAT'S RIGHT BECAUSE IT'S RIGHT, NOT BECAUSE SOMEONE SAYS YOU HAVE TO OR TO FEAR BEING SUED. WE DO WHAT'S RIGHT NO MATTER WHAT AND WE TAKE CARE OF OUR CITIZENS AND MAKING SURE OUR WATER IS DRINKABLE IS VERY IMPORTANT SO LET'S MAKE SURE WE GET THAT GOING MUCH AND I'M THANKFUL FOR THIS FEDERAL MANDATE. BUT FREE MONEY, GRANT MONEY IS TAXPAYER MONEY. REVENUE IS TAXPAYER MONEY -- LAST THING I WOULD SAY IS WOULD YOU PLEASE INSTRUCT THE STAFF THAT WHEN -- AND ANYONE, I'M NOT JUST SPEAKING TO THIS -- WHEN YOU INCREASE FEES ON THE MUNICIPAL UTILITY BILL, YOU CALL IT THAT. DON'T SAY YOU'RE SPREADING THE COST. IT'S INCREASING FEES AND THAT'S WHAT THE PLAN IS, TO INCREASE THE FEES FOR CITIZENS.

MOST AREN'T PAYING ATTENTION. I'M TRYING TO RESOLVE THAT.

BUT WE'VE GOT TO MAKE SURE THAT WE'RE COMMUNICATING CLEARLY WHAT WE'RE DOING AND NOT MINIMIZING THE FACT THAT GO WE'RE GOING THO START PAYING FOR THIS. THE CITIZENS ARE PRE-LOADING WITH THEIR FUNDING EVEN THOUGH WE HAVE OVER $200 MILLION IN BONDED DEBT FOR THE WATER AND SEWER DEPARTMENT ALONE SO THAT LEAVES PROBABLY ABOUT 150-ISH -- NO, WE'VE GOT MORE MONEY ON THE GENERAL FUNDED BUDGET SIDE SO LET'S BE CLEAR, WE'RE INCREASING FEES AND PEOPLE NEED TO BE PREPARED FOR THAT THAT SO THEY CAN BUDGET AND NOT BE SHOCKED WHEN IT HAPPENS.

THANK YOU. >> WOULD ANYONE ELSE LIKE TO SPEAK ON ITEM 20? SEEING NO ONE, I WILL CLOSE THE PUBLIC HEARING. ANY FURTHER DISCUSSION? I HAVE A MOTION BY COUNCILMAN PATTERSON.

>> SECOND. >> SECONDED BY COUNCILMAN ESPINOZA. FURTHER DISCUSSION?

READY TO VOTE. >> ALL YESES, MOTION CARRIES.

[ EXECUTIVE SESSION]

>> IT IS NOW 10:24 A.M. AND WE WILL RECESS INTO EXECUTIVE SESSION, CONSULTATION WITH ATTORNEY, SECTION 551, DELIBERATIONS ABOUT REAL PROPERTY, SECTION 551.074 PERSONNEL MATTERS, SECTION 551.076, DELIBERATIONS ABOUT SECURITY DEVICES, SECTION 551.087 DELIBERATIONS ABOUT BUSINESS PROSPECTS AND ECONOMIC DEVELOPMENT.

(MEETING MOVED TO EXECUTIVE SESSION) .

[ RECONVENE]

>> IT IS NOW 10:43 A.M. AND WE RECONVENE TO OPEN SESSION.

[22. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving the Development Corporation of Abilene, Inc.'s Economic Development Plan (Misty Mayo)]

NO NOTES OR ACTIONS WERE TAKEN DURING THE EXECUTIVE SESSION.

WE WILL NOW MOVE TO ITEM 22 AND I'LL ASK MISTY MAYO TO PRESENT

[01:55:02]

THIS ITEM. >> GOOD AFTERNOON, MAYOR HURT, CITY COUNCILMEMBERS AND CITY MANAGER CRAWFORD.

THANK YOU FOR THIS OPPORTUNITY TODAY TO PRESENT THE DEVELOPMENT CORPORATION OF ABILENE'S ECONOMIC DEVELOPMENT PLAN FOR FISCAL YEAR '27. ABILENE'S GROWTH IS THE RESULT OF INTENTIONAL PLANNING AND DISCIPLINED EXECUTION.

OUR PLAN IS EFFECTIVE AND THE PROOF IS IN THE RESULTS.

THESE ARE SOME OF THE RESULTS I WOULD LIKE TO HIGHLIGHT.

I SAY THE PROOF IS IN THE RESULTS, BECAUSE I WANT THE COUNCIL TO KNOW THAT WE CONTINUE TO EXECUTE ON OUR STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT. WITHIN THAT STRATEGIC PLAN, WE HAVE OUR CORE PILLARS. OUR BUDGET IS ALSO ALIGNED WITH OUR CORE PILLARS. THESE REMAIN INTENTIONAL AND STRATEGIC AND AGAIN EFFECTIVE. WHAT WE WILL ADD THIS YEAR IS OUR BOARD OF DIRECTORS WILL PRIORITIZE KEY WORK PLAN INITIATIVES WITHIN OUR STRATEGIES, MUCH LIKE THE CITY COUNCIL DID IN YOUR WORKSHOP PRIORITIES.

WE WILL DO THE SAME IN FISCAL YEAR '27 TO CONTINUE TO ENSURE THAT OUR PRIORITIZATION REMAINS STEADFAST AND IN LINE WITH THE NEEDS OF THE DEVELOPMENT CORPORATION, THE NEEDS OF OUR CUSTOMERS AND ULTIMATELY THE NEEDS OF OUR COMMUNITY.

AGAIN THE RESULTS SPEAK FOR THEMSELVES AND IT IS MY PRIDE AND PRIVILEGE TO RECOGNIZE THE MANY PEOPLE THAT ARE MAKING THIS HAPPEN, THAT IS YOU ALL THAT HAVE SUPPORTED BUSINESS AND ENSURED THAT OUR COMMUNITY REMAINS STEADFAST AND REMAINS FOCUSED ON UNDERSTANDING THAT OUR COMMUNITY NEEDS TO GROW TO GROW A FUTURE FOR OUR CITIZENS AND TO GROW OPPORTUNITY FOR OUR CHILDREN. THAT INCLUDES JOBS, THAT INCLUDES COMPANIES FEELING ENTHUSIASTIC AND FEELING EXCITED ABOUT THE FUTURE IN ABILENE. OUR BOARD OF DIRECTORS IS MADE UP OF FIVE INDIVIDUALS, TWO THAT I WAS ABLE TO DERBY ACTUALLY WANT -- I WANT TO SHOW YOU PICTURES, PARDON ME.

I WOULD LIKE TO INTRODUCE OUR CHAIR TRACY HOWAR AND OUR VICE-CHAIR BUDDY NAPIER. THANK YOU VERY MUCH FOR YOUR VISION AND OUR COMMITMENT TO OUR COMMUNITY AS WELL AS FLOYD MILLER, SHANE HALL AND MARK COLEMAN.

I'LL START BY GOING THROUGH THE PRESENTATION, HOWEVER I WILL ADD THAT THIS PREJUDICES PRESENTATIS AVAILABLE TO THE ENTIRE PUBLIC SO I WILL ASK THAT FOLKS REVIEW IT ON THEIR TIME TO AVOID ME ACTUALLY READING EVERY SLIDE TO YOU.

THE MOST IMPORTANT THING TO HIGHLIGHT IS THAT THE DEVELOPMENT CORPORATION RELEASES, PUBLISHES AN ANNUAL REPORT AND OUR ANNUAL REPORT CAN BE FOUND ONLINE, EITHER WITH THIS QR CODE OR AT DEVELOPABILENE.COM AND WE'VE ALSO BROUGHT PHYSICAL COPIES OF IT THAT ARE OUTSIDE FOR THOSE THAT WOULD LIKE TO PICK THAT UP. I'VE HIGHLIGHTED EACH ONE OF OUR STRATEGIES. THIS IS BUSINESS ATTRACTION, BUSINESS ATTRACTION DEALS WITH COMPANIES FROM OUTSIDE OF OUR MARKET, ENSURING THAT WE CONTINUE TO BE TOP OF MIND FOR PROJECTS WHERE COMPANIES WANT TO INVEST THEIR CAPITAL.

THE DEVELOPMENT COURSE OVER THE LAST SIX YEARS HAS WORKED WITH 52 PROJECTS AND THOSE ARE 52 DIFFERENT PROJECTS WHERE THE COMPANY'S MADE A COMMITMENT TO SPEND THEIR MONEY IN ABILENE.

OUT OF THAT, 36 WERE WITH LOCAL EXISTING COMPANIES.

WE WILL CONTINUE TO SEE THAT LOCAL EXISTING COMPANIES ARE PRIORITIZED BECAUSE THOSE ARE OUR EXISTING CUSTOMERS AS OUR COMMUNITY. AND WE'LL CONTINUE TO SEE A NUMBER OF LOCAL EXISTING COMPANIES LIKE ABBY MAR WHO RECENTLY MADE A 15 MILLION-DOLLAR COMMITMENT TO EXPAND THEIR OPERATIONS IN ABILENE.

WE'LL CONTINUE TO SEE LOCAL COMPANIES LIKE THAT BE ENTHUSIASTIC ABOUT STAYING IN ABILENE AND GROWING HERE.

I ADDED TARGET INDUSTRY ASSESSMENT, AND THESE ARE OUR TARGETED INDUSTRIES, BECAUSE AGAIN, IT IS A VERY INTENTIONALLY PLANNED AND STRATEGIC EFFORT TO IDENTIFY THE NEEDS OF THE COMMUNITY AND THE FOCUS ON DIVERSIFYING OUR

[02:00:07]

INDUSTRIES, BECAUSE DIVERSIFICATION OF INDUSTRIES IS WHAT LEADS TO A MORE SUCCESSFUL AND THRIVING COMMUNITY.

ONE OF THE MANY THINGS. WORKFORCE DEVELOPMENT.

I WOULD LIKE TO CALL THIS WORKFORCE PIPELINE.

THE DEVELOPMENT COURSE, YOU'LL SEE IN OUR BUDGET AND THE NEXT AGENDA ITEM, THAT THE DEVELOPMENT CORPORATION IS WORKING WITH BOTH WYLIE ISD, ABILENE ISD AND OTHER EDUCATIONAL INSTITUTIONS TO ENSURE THAT WE'RE GROWING A WORKFORCE PIPELINE, THAT THE JOBS THAT ARE BEING CREATED WE BE FILLED BY OUR FUTURE SIT SEARCHES BY OUR EXISTING CITIZENS THAT HAPPEN TO BE YOUNGER SO OUR FUTURE GENERATIONS OF WORKERS. MARKETING AND BRAND MANAGEMENT.

MARKETING IS WHAT WE DO. WE MARKET AND WE PROMOTE ABILENE. WITHIN THIS BUDGET ITEM, YOU'LL SEE IN A MOMENT AGAIN I'LL BRING THE BUDGET IN THE NEXT ITEM.

UNDER MARKETING AND BRAND MANAGEMENT, YOU ALSO HAVE BUSINESS ATTRACTION, YOU HAVE OPPORTUNITIES TO VISIT WITH CORPORATE HEADQUARTERS. YOU HAVE OPPORTUNITIES TO PROMOTE ABILENE'S STORY AND YOU SEE SOME EXAMPLES OF THE THINGS THAT WE DO EVERY DAY TO ENSURE A FUTURE FOR ABILENE AND MORE ACCOLADES, SILVER AWARDS, GOLD AWARDS, BEST IN SHOW ARE ALL A TESTAMENT TO OUR PROFESSIONAL ECONOMIC DEVELOPMENT STAFF TEAM AND I HAVE SOME OF THEM HERE THAT DO A GREAT JOB EVERY DAY TO MAKE SURE WE ARE PROMOTING ABILENE.

ONE OF THE CAMPAIGNS I'M MOST PROUD OF IS THE DEVELOPED IN ABILENE CAMPAIGN, BECAUSE AGAIN, THAT'S HIGHLIGHTING OUR LOCAL EXISTING COMPANIES AND THEIR SUCCESSES.

THIS PARTICULAR ONE IS CLAVELLE. THE NEXT STRATEGY IS REAL ESTATE. THE DEVELOPMENT CORPORATION OWNS OVER 700,000 SQUARE FEET OF BUILDINGS.

WE OWN AND OPERATE TWO INDUSTRIAL PARKS.

YOU'LL FIND COMPANIES LIKE GREAT LAKES CHEESE AT ACCESS BUSINESS PARK. YOU'LL FIND AMAZON, HARTMAN'S.

HARTMAN IS A 60-YEAR-OLD ABILENE COMPANY, HOMEGROWN.

THEY ARE IN FIVE POINTS BUSINESS PARK.

THIS IS A FOCUS FOR THE DEVELOPMENT CORPORATION.

WE HAVE RECENTLY ACQUIRED LAND. YOU SEE IT ON THE MAP.

THESE ARE ACTUALLY TWO OF THE INDUSTRIAL PARKS PUT ON ONE SLIDE SO ON THE RIGHT IS ACCESS BUSINESS PARK BY THE AIRPORT.

AND ON THE LEFT IS FIVE POINTS BUSINESS PARK.

EFFECTIVE OPERATIONS, WE CONTINUE TO OPERATE WITH TRANSPARENCY AND OPERATE AGAIN WITH DISCIPLINED EXECUTION AND EFFECTIVE OPERATIONS IS OUR COMMITMENT TO THAT.

THE AWARDS THAT WERE HIGHLIGHTED EARLIER.

THE BOARD. AND THE FACT THAT ONE OF EVERY THREE JOBS IN ABILENE WERE CREATED BECAUSE OF THE EFFORTS OF THE DEVELOPMENT CORPORATION AND THE INVESTMENT IN THE DEVELOPMENT CORPORATION ALLOWS US TO THEN INVEST IN OUR COMPANIES AND INVEST IN OUR FUTURE.

>> MISTY, AS ALWAYS, WE APPRECIATE YOU, WE APPRECIATE YOUR STAFF. ALSO, ALWAYS WANT TO SEND A SHOUT-OUT, YOUR BOARD OF DIRECTORS IS SO DIVERSIFIED AND I ALWAYS LIKE TO CLARIFY TOO THAT THEY ARE APPOINTED AND APPROVED BY THIS COUNCIL. AND THEIR WORK IS GREATLY APPRECIATED BY THIS COUNCIL AND BY ABILENE.

AND ALL YOUR STAFF, THE HARD WORK THAT YOU DO, IT'S -- WE'RE ALWAYS JUST WONDERING WHAT YOU'RE GOING TO WALK THROUGH THE DOOR WITH, SO IT'S ALWAYS EXCITING.

QUESTIONS, COUNCIL? >> AT THIS TIME I WILL OPEN UP THE PUBLIC HEARING. IS THERE ANYONE WHO WOULD LIKE TO SPEAK EITHER BEFORE ABOUT OR AGAINST ITEM 22? PLEASE COME FORWARD AND GIVE YOUR NAME FOR THE RECORD.

SEEING NO ONE I WILL CLOSE THE PUBLIC HEARING.

ANY FURTHER DISCUSSION? IF NOT I'LL ACCEPT A MOTION AND

SECOND. >> MOVE FOR APPROVAL.

>> SECOND. >> MOTION BY COUNCILMAN BEARD.

SECONDED BY COUNCILMAN BAILEY. HOW ABOUT PRICE?

>> JUMPED ON IT. >> READY TO VOTE.

[23. Resolution: Receive a Report, Hold a Discussion and Public Hearing, and Take Action on Approving the Annual Budget for the Development Corporation of Abilene, Inc. (Misty Mayo)]

>> ALL YESES, MOTION CARRIES. >> MOVE ON TO ITEM 23 AND MISTY

AGAIN WILL PRESENT WILL ITEM. >> THANK YOU, MAYOR AND COUNCILMEMBERS. I HAVE ALREADY REFERENCED THE BUDGET ON SEVERAL OCCASIONS. THE DCOA BOARD OF DIRECTORS HAS APPROVED THE BUDGET FOR FISCAL YEAR 2027.

[02:05:02]

THE DCOA REQUEST, THE CITY COUNCIL'S RATIFICATION, APPROVAL AS WELL. THE DCOA CONTINUES TO OPERATE WITH TRANSPARENCY, ACCOUNTABILITY AND A COMMITMENT TO RESPONSIBLE SPENDING. WE ARE BUILDING ON FIVE YEARS OF RECORD SETTING PROGRESS AND PREPARING FOR THE NEXT CHAPTER.

I WOULD LIKE TO PRESENT A FULLY BALANCED BUDGET.

YOU WILL SEE THE TOTAL REVENUES AND INCOME BUDGETED FOR FISCAL YEAR '27 IS $26,820,166. THE TOTAL OPERATING EXPENSES, WHICH ALSO INCLUDES -- CONSIDER OPERATE, EXPENSES ALSO ARE HIGHLIGHT OF OUR CORE PILLARS WITHIN OUR PLAN THAT WE'VE JUST PREVIOUSLY PRESENTED SO THOSE EXPENSES ARE $9,787,813: THEN RESERVED FOR INCENTIVES AND CAPITAL EXPENDITURES IS $17,032,353. RESULTING IN A ZERO CHANGE IN NET ASSETS. THE NET EFFECT OF ALL BUDGET CHANGES, SO BOTH INCREASED REVENUES AND INCREASED EXPENSES, IS A MANAGEABLE 4.7%. THIS IS THE BUDGET.

AGAIN SHOWING YOU THE CORRELATION BETWEEN THE REVENUE, WE'VE COLOR CODE THE REVENUE, THE OPERATING EXPENSES AND THE RESERVED -- AMOUNT FOR RESERVED FOR CAPITAL EXPENDITURES.

IT'S IMPORTANT TO HIGHLIGHT IN THE BLUE AREA THE INCENTIVES, ANY CASH INCENTIVE TO A COMPANY OVER $500,000 REQUIRES APPROVAL BY CITY COUNCIL. SO MANY FOLKS ARE ACCUSTOMED THAT I BRING THOSE AS THE MAYOR MENTIONED, WHAT DO I PLAN TO BRING NEXT. THAT'S THE CATEGORY IN WHICH WE OPERATE THOSE ON. IT'S ALSO IMPORTANT TO SHOW THIS: I WILL HIGHLIGHT THAT TODAY THIS IS -- THIS SECTION IS ALREADY APPROVED. SO THIS IS PREVIOUSLY APPROVED, NO VOTE IS REQUIRED. THIS IS FOR THAT COMMITMENT OF ENSURING THAT YOU CAN SEE THE PREVIOUS COMMITMENTS THAT HAVE BEEN MADE AND THE PROJECTED PROGRESS OF THOSE CONTRACTS, REMINDING THE COMMUNITY THAT EVERY INCENTIVE REQUIRES A CONTRACT AND THE CONTRACT MUST HAVE DELIVERABLES ATTACHED TO WHAT'S CALLED CLAWBACKS OR PAYBACKS.

AND WE TRACK THAT VERY SERIOUSLY AND CONSIDER THAT PART OF OUR OVERALL COMMITMENT TO A RELATIONSHIP WITH THESE COMPANIES AND HELPING THEM GROW AND PROSPER IN ABILENE.

WHAT YOU ARE CONSIDERING TODAY IS THIS BUDGET.

MAYOR, I WILL ASK IF THERE ARE QUESTIONS I CAN ANSWER.

I TRIED TO HIGHLIGHT ON MARKETING EXAMPLES OF KEY INVESTMENTS IN MARKETING. AGAIN, THIS IS GEOFENCING, GIS MAPPING, THIS IS THE MAPS I JUST SHOWED YOU.