[1. CALL SESSION TO ORDER] [00:00:05] >> ALL RIGHT. IT'S 7:02. WE'LL CALL THE CITY COUNCIL MEETERING FOR THURSDAYTIOUS AUGUST 20TH TO ORDER. WE'LL START WITH ROLL CALL. COUNCILLORMAN REYNOLDS. >> HERE. >> COUNCILLORMAN THORNTON. >> HERE. >> COUNCILLORMAN MORRIS. >> HERE. >> ZEPEDA. >> HERE. >> MAYOR PORTERFIELD. >> HERE. >> MAYOR SNYDER IS HERE. NEXT IF YOU RISE WE WILL BE LED TONIGHT BY PASTOR ARTOR EXPENSE OF LITTLE EBENEZER BAPTIST CHURCH. >> GOOD EVENING. HEAVENLY LORD WE ASK YOU TO BLESS US AS WE GO ON TO THIS MEETING. WE ASK YOU TO BLESS BOTH THE COUNCIL MEMBERS AND THE MAYOR AND ALL THAT ARE HERE. DIRECT US, LORD, AND ASK LORD TO CONTINUE US TO BLESS US AS WE GROW AND GET BIGGER GOD AND LORD. LET YOU ALSO BE A BLESSING TO SOMEONE ELSE AS WE LEAVE THIS PLACE, HAVE YOUR ANGELS OF PROTECTION AND HELP US GET TO OUR ZEST NATION SAFELY. GIVE YOU ALL THE HONOR. IN JESUS NAME WE PRAY. AMEN. >> AMEN. >> JOIN ME IN THE PLEDGE. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL. HONOR THE TEXAS FLAG. I PLEDGE ALLEGIANCE TO THEE, TEXAS. ONE STATE UNDER GOD. ONE, INDIVISIBLE. >> I DIDN'T SEE ANY PUBLIC COMMENT. WE'RE GOOD THERE? >> ONLY FOR ITEM 7, 1 OR IS THAT? >> OH, EXECUTIVE 7, 1. [6.1. Chamber of Commerce Quarterly Update (Joe Gonzalez)] OKAY. AND THAT BRINGS US TO TO ITEM 7, 1 CHAMBER OF COMMERCE QUARTERLY UPDATE. I TOLD YOU WE'RE BOOKING TONIGHT. WE'RE UP HERE REAL QUICK. WELL, I THANK YOU FORRAL AUTOING US TO COME UP HERE TO DO OUR PRESENTING THIS EVENING. YOU MAY HAVE A QUESTION ABOUT THE GENTLEMAN NEXT TO ME. I WILL LET YOU GUYS KNOW WHO HE IS. GOOD EVENING MAYOR, COUNCIL MEMBERS, AND CITY STAFF. BEFORE I GET INTO OUR QUARTERLY UPDATE, I WANT TO TAKE JUST A MOMENT BECAUSE TONIGHT IS A LITTLE BIT DIFFERENT FOR ME. FOR THE PAST THREE YEARS I HAVE HAD THE PRIVILEGE OF STANDING BEFORE YOU AND PROVIDING THESE QUARTERLY UPDATE ON BEHALF OF THE HUTTO AREA CHAMBER OF COMMERCE. AS I COMPLETE MY SERVICE ON THE CHAMBER BOARD OF DIRECTORS, THIS WILL BE MY FINAL QUARTERLY UPDATE. IT HAS TRULY BEEN AN HONOR TO REPRESENT THE CHAMBER BEFORE THE CITY AND MORE IMPORTANTLY TO BE PART OF THE TREMENDOUS GROWTH AND MOMENTUM WE HAVE SEEN THROUGHOUT HUTTO. WITH THAT SAID THE GENTLEMAN NEXT TO ME, I ALSO HAVE THE PLEASURE TONIGHT TO INTRODUCE TO YOU MR. A.J. BINGHAM OF THE BINGHAM GROUP. HE WILL BE TAKING MY PLACE IN PROVIDING THESE UPDATES GOING FORWARD. HE IS A RESPECTED COMMUNITY LEADER, AND I KNOW HE WILL DO A GREAT JOB REPRESENTING THE CHAMBER AND CONTINUING TO STRENGTHEN THEIR RELATIONSHIP BETWEEN THE CHAMBER, THE CITY, AND OUR BUSINESS COMMUNITY. NOW LET'S GO TO THE UPDATE. THIS EVENING I WOULD LIKE TO START THE UPDATE WITH SOMETHING VERY SPECIAL. WE HAVE HIT A VERY MONUMENTAL PEAK IN OUR TENURE IN THE LAST TWO TO THREE YEARS WE HAVE SOME BIG NEWS, AND YOU GUYS KNOW WHAT THE NEWS IS. THIS QUARTER THE BIG NEWS IS THE SALE OF OUR CURRENT CHAMBER PROPERTY AND THE BEGINNING OF THE DESIGN PROCESS FOR OUR NEW BUILDING AND LOCATION. WHAT MAKES THIS ESPECIALLY SIGNIFICANT IS THIS FACILITY IS BEING MADE POSSIBLE THROUGH PARTNERSHIP BETWEEN THE HUTTO AREA CHAMBER OF COMMERCE, THE CITY OF HUTTO, AND THE HUTTO ECONOMIC DEVELOPMENT CORPORATION. ON BEHALF OF THE CHAMBER, I WANT TO EXTEND A HUGE THANK YOU TO THE HUTTO CITY COUNCIL AND THE HUTTO ECONOMIC DEVELOPMENT CORPORATION FOR YOUR PARTNERSHIP, YOUR SUPPORT, AND YOUR CONTINUED INVESTMENT IN OUR BUSINESS COMMUNITY. THIS IS MUCH MORE THAN ARE JUST A NEW CHAMBER BUILDING. IT REPRESENTS WHAT CAN HAPPEN WHEN THE CITY, THE EDC, AND THE CHAMBER WORK TOGETHER WITH A COMMON PURPOSE. AS HUTTO CONTINUES TO GROW, OUR CHAMBER MUST GROW WITH IT. THIS NEW HOME WILL GIVE US AN [00:05:02] OPPORTUNITY TO BETTER SERVE OUR MEMBERS, SUPPORT OUR BUSINESSES, WELCOME NEW BUSINESSES INTO THE HUTTO COMMUNITY AND FOR THE FUTURE. IT IS A SIGNIFICANT MILESTONE FOR THE CHAMBER AND WE ARE EXTREMELY EXCITED ABOUT WHAT IS AHEAD. WE LOOK FORWARD TO SHARING MORE WITH THE COMMUNITY AT THE DESIGN AND DEVELOPMENT PROCESS AS IT MOVES FORWARD. SECOND ITEM, OUR MEMBERSHIP AND GROWTH. OUR MEMBERSHIP AND GROWTH HAS KEPT VERY CONSISTENT OVER THE LAST YEAR OR SO. WE ARE AVERAGING APPROXIMATELY 450 MEMBERS. WE HAVE EXPERIENCED TREMENDOUS GROWTH IN TWO AREAS. 60% GROWTH IN OUR MONTHLY LUNCHEONS AND 111% GROWTH IN OUR CHAMBER PROGRAMS. THOSE NUMBERS TELL US THAT OUR BUSINESS COMMUNITY ISN'T SIMPLY JOINING THE CHAMBER. THEY ARE GETTING INVOLVED, PARTICIPATING, AND UTILIZING THE CHAMBER AS A RESOURCE. NEXT ITEM OF BUSINESS AND COMMUNITY ENGAGEMENT. DURING THIS LAST QUARTER WE CELEBRATED TEN RIBBON CUTTINGS WHICH SHOWS A CONTINUATION OF MANY OF THE COMPANIES IN THE SURROUNDING AREA COMING TO HUTTO, AND WE CONTINUE TO CELEBRATE THEIR RELOCATION AND LOCATION. WE ALSO OFFERED THREE SMALL BUSINESS WORKSHOPS FOCUSED ON PRACTICAL ISSUES FACING BUSINESS OWNERS. AND THEY ARE EMPLOYEE RETENTION, CPR CERTIFICATION, AND PROFIT-DRIVEN SALES. IN ADDITION, WE OFFERED A AL WORKSHOP HELPING OUR BUSINESS COMMUNITY BETTER UNDERSTAND HOW THIS TECHNOLOGY CAN BE USED IN TODAY'S BUSINESS ENVIRONMENT. WE ALSO PARTNERED WITH THE HUTTO EDC ON A SMALL BUSINESS INITIATIVE UTILIZING LINKEDIN LEARNING PROVIDING ANOTHER RESOURCE TO SUPPORT AND DEVELOPMENT OUR LOCAL BUSINESSES. AND TOWARD THE END OF THIS LAST MONTH I SHOULD SAY WE ALSO HOSTED A DEVELOPERS MIXER IN WHICH MANY OF YOU USUALLY DO ATTEND. THIS LAST MIXER WE ATTRACTED MORE THAN 90 ATTENDEES WHO WERE EAGER TO HEAR ABOUT DEVELOPMENT AND WHAT IS AHEAD FOR THE HUTTO AREA. THE RESPONSIBLE WAS TREMENDOUS, AND WE WILL CONTINUE THAT DEVELOPMENT ON NOVEMBER 1ST WHICH YOURS TRULY HERE MR. MIKE SNYDER MAYOR WILL BE OUR FEATURED SPEAKER. IN REFERENCE TO UPCOMING EVENTS I HAVE TWO I WILL FOCUS ON BECAUSE THEY ARE IN AUGUST AND THEY ARE NEXT WEEK. THE BIGGY WILL BE THE CENTRAL TEXAS KOREA SUMMIT WHICH WILL BE AUGUST 26, 2026 WHICH WILL BE IN TAILOR NEXT YEAR. THE TIME IS 4:30 AND WILL BE AT THE WILCO EXPO CENTER IN TAYLOR. WE WILL HAVE OUR BLOOD DRIVE AUGUST 28, 2026. AND WHILE WE ARE ARE FINISHING OUT A VERY ACTIVE 2026, THE CHAMBER IS ALREADY GEARING UP FOR 2027 WITH SOME GREAT PROGRAMMING AND INITIATIVES AHEAD. WE WILL BE FOCUSING ON THE NEW INITIATIVES IN DECEMBER WHICH WILL BE OUR RETREAT. AND WE WILL BE COLLABORATING WITH EVERYONE TO SIT FOR THE AGENDA OF 2027N CLOSING AS I GIVE MY FINAL REPORT, I WANT TO CLOSE SIMPLY BY SAYING THANK YOU. THANK YOU TO THE MAYOR, CITY COUNCIL, CITY STAFF, THE HUTTO ECONOMIC DEVELOPMENT CORPORATION, OUR CHAMBER STAFF, OUR BOARD OF DIRECTORS, OUR MEMBERS, AND ALL OF THE COMMUNITY PARTNERS WHO CONTINUE TO WORK TOGETHER FOR HUTTO. I HAVE HAD THE PRIVILEGE OF WATCHING THIS COMMUNITY GROW, AND I HAVE BEEN FORTUNATE TO PLAY A SMALL PART IN THAT GROWTH. ONE THING I HAVE LEARNED DURING MY TIME SERVING THE CHAMBER IS THAT HUTTO'S SUCCESS HAS NEVER BEEN ABOUT ONE ORGANIZATION OR INDIVIDUAL. IT MAPS WHEN THE CHAMBER, EDC, OUR SCHOOL AND BUSINESSES AND COMMUNITY WORK TOGETHER. I AM PROUD OF WHAT WE ACCOMPLISHED BUT MORE EXCITED ABOUT WHAT'S AHEAD. OUR COMMUNITY IS ENGAGED. WE ARE PREPARE FOR A NEW HOME. AND HUTTO CONTINUES TO MOVE FORWARD. IT'S BEEN AN HONOR TO PROVIDE THESE UPDATES FOR THE PAST THREE YEARS AND EVEN GREATER HONOR TO SERVE THIS COMMUNITY. THANK YOU GUYS. GREATLY APPRECIATED. ANY QUESTIONS? WE HOPE TO SEE YOU NEXT WEEK AT THE KOREA SUMMIT IN TAILOR. >> I WOULD LIKE TO SAY THAT I HAVE BEEN MORE INVOLVED IN THE CHAMBER THE LAST THREE OR FOUR YEARS. YOU MENTION WHEN YOU CAME ON THERE WERE 240 MEMBERS AND NOW [00:10:03] WE'RE AT THE 450. SO THAT'S A TESTAMENT NOT ONLY TO YOURSELF BUT THE GROUP AROUND YOU SO LOOKED WONDERFUL. ALSO WANT TO WELCOME MR. BINGHAM TO A WONDERFUL GROUP HERE. APPRECIATE YOU STEPPING UP AND ALSO LOOKING FORWARD TO WORKING WITH YOU AND THE RE OF THE BOARD. THANK YOU. >> THANK YOU. I DO REMEMBER THAT VERY FIRST PRESENTATION AND THE NUMBER OF MEMBERS AT THAT TIME WERE 280. AND I REMEMBER THAT SPECIFICALLY BECAUSE I STARTED GOING BACK AND LOOKING AT OUR NOTES GOING WOW, WE HAVE COME A LONG WAYS. BUT IT HAS BEEN A LOT OF HARD WORK FOR THE CHAMBER, THE BOARD, STAFF. WE HAVE GONE THROUGH A LOT OF CHANGES OVER THE LAST THREE YEARS. SO COUNCIL BUT THE GROWTH IN HUTTO REALLY PUSHED THAT FORWARD. AND IT'S JUST GOING TO GET BIGGER AND BETTER. THAT'S WHY THE CITY AND CHAMBER NEED TO WORK TOGETHER, AND OF COURSE CREATE THAT PATHWAY FORWARD BECAUSE WE ALL KNOW IT'S NOT GOING TO STOP HERE. SO THANK YOU FOR EVERYTHING YOU GUYS DO, AND IF YOU NEED ANYTHING, PLEASE LET US KNOW. >> AND I SECOND WHAT COUNCILLOR MORRIS WAS SAYING. I REMEMBER WHEN WE FIRST TALKED AND SAID I WOULD REALLY LIKE TO SEE YOU GUYS UP HERE QUARTERLY. AND I KNOW IT'S KIND OF A NEW THING IN THE CHAMBER, YOU KNOW, COMING TO US AND PRESENTING THAT. I AM LOOKING FORWARD TO AJ, YOU BEING A PART OF THAT PROCESS. THAT WILL CONTINUE TO GROW. TO ME GOTTA PUT IT OUT THERE SOMEWHERE RECENTLY THAT YOU CAN'T HAVE, YOUR CITY CAN ONLY GROW SO FAR WITHOUT A STRONG BUSINESS COMMUNITY. ULTIMATELY WE ARE TRYING TO PUSH THE TAXES OFF ON THE COMMERCIAL SECTOR, AND IN ORDER TO DO THAT, THEY HAVE TO BE STRONG. THEY HAVE TO BE PROFITABLE. AND THEY HAVE TO BE, YOU KNOW, WELL-RUN. AND SO I THINK IT'S A PARTNERSHIP TO WHERE WE HAVE TO HELP YOU GUYS GROW AND SUCCEED, AND YOU HAUL HELP THEM GROW AND SUCCEED SO WE CAN LESSEN THE BURDEN ON EVERYBODY AND KIND OF SPREAD IT OUT AND GET MORE PEOPLE TO COME TO HUTTO. WE HAVE SEEN THAT GROWTH. I THINK IT'S BEEN REALLY A PARTNERSHIP THE EVENTS YOU GUYS HAVE, THE THINGS YOU GUYS ARE DOING, THE MEETINGS ALL WORKING TOGETHER. BACK BEFORE JOE GOT HERE IT WASN'T ALWAYS LIKE THAT. SO I THINK WHAT YOU HAD IS YOU HAD GROWTH, BUT IT WASN'T, IT WASN'T LIKE WE WERE DOING IT NOW. AND I DON'T KNOW WHAT EXACTLY HAS CHANGED OTHER THAN THE LEADERSHIP THAT JOE HAS PROVIDED OVER THE PAST SEVERAL YEARS TO WHERE IT'S KIND OF GOT PEOPLE TO GO BECAUSE HE IS BRINGING EXPERIENCE FROM OTHER CHAMBERS AND FROM THE BANKING AND SO THANK YOU FOR EVERYTHING. YOU HAVE DONE GREAT. AND I GUESS THIS JUST MEANS YOU WILL BE HERE MORE NOW THAN EVER BECAUSE FREE UP TIME NOT BEING AT THE CHAMBER SO NOW YOU WILL HAVE THE TIME TO BE AT MORE EVENTS. SO LOOKING FORWARD TO SEEING YOU, YOU KNOW, YOU IN YOUR DAY ROLE INSTEAD OF YOUR EVENING ROLE. >> AND SEE THAT BUILDING THROUGH. MAKE SURE WE SEE THAT BUILDING THROUGH. >> AND AJ, ANYTHING YOU WANT TO SAY? >> NO. I JUST LOOK FORWARD TO WORKING Y'ALL NEXT Q4 AND ON. SO LOOK FORWARD TO INDIVIDUALLY AS WELL AND I KNOW JOE DOES GOOD WORK. >> I WILL REACH OUT AND SEE IF HE HAS ONE MORE EXPENSE LINE HE CAN PASS THAT WE CAN SIT ON TOP BEFORE HE BAILS. >> I LIKE THAT. >> THAT, GUYS. >> THANK YOU. WELCOME, SIR. [6.2. Consideration and possible action approving a wholesale wastewater rate. (Jason Gray)] >> CONGRATULATIONS. >> ALL RIGHT. NEXT WE HAVE ITEM 6, 2. CONSIDERATION OF POSSIBLE ACTION APPROVING A WHOLESALE WASTEWATER RATE. >> THANK YOU, MAYOR AND COUNCIL. ALBERTA BARRET, FINANCE DIRECTOR, FOR THE RECORD. THE TONIGHT I WILL TURN IT OVER TO JASON GREY WITH WILDEN FINANCIAL SERVICES TO WALK YOU THROUGH THE WHOLESALE WASTEWATER STATE ANALYSIS. >> THANK YOU. MAYOR AND COUNCIL. AGAIN, JASON GREY. THANKFULLY TONIGHT THE WHOLESALE WASTEWATER RATES WILL BE A MUCH SMALLER PRESENTATION THAN WATER AND WASTEWATER RATES FOR COMMUNITY AS A WHOLE. WE HAD SEVEN OR EIGHT SLIDES HERE TO WALK THROUGH WHAT WE ARE RECOMMENDING YOU CHARGE FOR A WHOLESALE RATE TO TAYLOR AND ROUND ROCK TO ACCEPT, CONVEY, AND TREAT THEIR WASTEWATER PORTIONS OF THEIR COMMUNITY. SO WITH THAT AGAIN JUST A FEW SLIDES HERE. SOME SIMILARITIES WITH RETAIL RATES THAT YOU CHARGE YOUR RETAIL CUSTOMERS, THOSE WHO ACTUALLY RECEIVE WATER FROM YOU ON A RETAIL BAYIS, YOUR HOUSES, YOUR BUSINESSES, AND FROM A WHOLESALE PERSPECTIVE, NORMALLY WE SEE THREE DIFFERENT PORTION THAT GO INTO A VOLUMETRIC CHARGE FOR WHOLESALE AT PROPORTIONAL COST OF OPERATING AND MAINTAINING THE SYSTEM AS A WHOLE. PROPORTIONAL COST GENERALLY IS DECIDED BY HOW MUCH VOLUME IS BEING SENT TO THE SYSTEM BY THOSE WHOLESALE CUSTOMERS. PROPORTIONAL COST OF ADMINISTERING THE SYSTEM AS A WHOLE, AND A PER GALLON COST OF TREATING THE VOLUME ITSELF. THOSE COSTS CAN FLUCTUATE ON A YEAR TO YEAR BASIS PARTICULARLY THE THIRD PIECE OF THAT, THE PER GALLON COOF TREATING. AS YOU CAN PROBABLY IMAGINE,EST WITH AWATER AND WATER UTILITY [00:15:01] BOTH ARE SORT OF ECONOMIES OF SCALE TYPE BUSINESS WHERE AS LONG AS IT IS UNDERNEATH THE CAPACITY OF THE PLANT THE LOWER THE PER THOUSAND COST TENDS TO BE. SO YOU WILL SEE THAT PLAY OUT HERE THE PROPORTIONAL COST OF WHAT THEY ARE USING AS PART OF THE INFRASTRUCTURE YOU HAVE IN PLACE. THE PLAN AND LIST STATIONS AND ALL THE INFRASTRUCTURE THAT WILL BE USED TO CONVEY WASTEWATER OR ROUND ROCK AND LOOK AT THAT AND ALLOCATE TO THEM. FOR INSTANCE IF THERE'S A 10-INCH SEWER LINE OUT THERE AND ROUND ROCK IS USING 10% OF THAT LINE. THEY WILL BE ASSIGNED 10% OF THE COST. I THINK YOU GET THE IDEA THERE GENERALLY SPEAKING. ALTHOUGH WE HAVE A RECOMMENDED FIX CHARGE AND VOLUME CHARGE IT IS THE CAN AD A LITTLE BIT DIFFERENTLY FROM THE WAY WE CALCULATE THESE KIND OF RATE FOR OUR HOMEOWNERS AND BUSINESSES BUT THEY DO EXPRESS THEMSELVES IN A FIXED CHARGE AND VOLUME CHARGE. ESSENTIALLY THAT FIRST KILOMETRE DOWN TO A FIVE-YEAR LOOK AHEAD HERE. WE EXPECT YOUR TREATMENT COST TO BE 6.7 MILLION WHICH INCLUDES DEBT SERVICE. YOU DON'T INCLUDE DEBT SERVICE AS A PORTION OF THE TREATMENT COST BUT YOU PICK THAT UP ON THE INFRASTRUCTURE SIDE AND YOU TAKE A LOOK AT THE TOTAL WASTEWATER FLOWS. PRISON YOU GOT 602 MILLION GALLONS GOING INTO THE TWO DIFFERENT PLANTS. SO YOUR COST PER UNIT ON A PER THOUSAND GALLON BASIS IS ABOUT 655. YOU CAN SEE OVER TIME THAT GOES DOWN BY 2031. $5.18 PER THOUSAND GALLONS. EVEN THOUGH YOUR TOTAL COST INCREASED YOUR PROJECTED FLOWS GOES UP TO 974 MILLION GALLONS SO THAT BRINGS THE TOTAL TREATMENT COST TO 518 PER THOUSAND. AGAIN, I'M NOT GOING TO GO LINE BY LINE ON THE PEES OF INFRASTRUCTURE WE HAVE INCLUDED AS PART OF THIS, BUT YOU WILL SEE HERE WE HAVE BACKED OUT FOR TAYLOR FROM THEIR PERSPECTIVE. THEY DID CONTRIBUTE A PORTION OF THE ARBA GRANT. WE BACKED THAT OUT AND MADE SURE THEY GOT CREDIT FOR THAT. WE TAKE A LOOK AT A PERCENTAGE OF THE FLOW CAPACITY. SO JUST BY WAY OF EXAMPLE THE FIRST PROJECT THERE THE SOUTHEAST LOOP INTERCEPTOR PHASE 2. IN THIS CASE TAILOR WOULD HAVE 5.77% OF THE LINE CAPACITY. THEY WOULD HAVE AN ALLOCATED COST OF 398903. AND WE TAKE THAT ONTO AN ANNUAL BASIS OF WHAT'S THE TOTAL DEBT SERVICE COST FOR THAT LINE. 90,666 FOR THAT PARTICULAR LINE. AND YOU CAN SEE THERE THE REMAINDER OF THE INFRASTRUCTURE. THE WASTEWATER PLANT EXPANSION IS THE BIG TICKET ITEM. $992,000 IN ANNUAL COST THAT IS ASSOCIATED WITH TAYLOR. THE REST OF THE LINES ESSENTIALLY. WHEN WE LOOK AT ROUND ROCK, SAME KIND OF IDEA. NO ARPA GRANT THERE THAT GETS ATTRIBUTED TO ROUND ROCK. SO YOU HAVE A FEW LESS COLUMNS BUT THE IDEA OF TAKING EACH LINE, FIGURING OUT WHAT THEIR FLOW CAPACITY IS WITHIN EACH OF THOSE LINES AND WHAT THEIR SHARE OF THE COST IS FOR EACH OF THOSE LINES WHICH THEN BRINGS US DOWN TO AGAIN CALCULATING THE COST FOR 2027 ALONE. AND WE ARE RECOMMENDING A FIVE-YEAR AVERAGE ON YOUR VOLUME CHARGE BUT 655 PER THOUSAND GALLONS TO TREAT. AND YOU CAN SEE THE BASE CHARGE FOR TAYLOR THERE WE'RE RECOMMENDING 1.559, 348 MILLION PER YEAR BASED ON THEIR PROPORTIONAL SHARE OF THE INFRASTRUCTURE THAT SERVES THEM. THAT'S 129,949.19 PER MONTH. FOR ROUND ROCK, SAME CHARGE ON THE VOLUME SIDE BECAUSE THAT DOESN'T CHANGE REGARDLESS OF WHO IS SENDING. THE BUT THEY USE A SIGNIFICANTLY SMALLER PORTION OF THE INFRASTRUCTURE SO THEIR CHARGE WOULD BE 3,405.23 A MONTH OR 38,821 A WE'RE. SO WHAT WE'RE RECOMMENDING TO YOU TONIGHT IS YOU SET THOSE AS THE CAPACITY CHARGES FOR TAYLOR. 129,945.69 ON A MONTHLY BASIS AND THEN ROUND ROCK CAPACITY CHARGE AT 3,401.73 PER MONTH. AND THAT YOU ALSO CHARGE THEM ON A VOLUME BASIS FOR ANY FLOW THAT THEY SEND TO YOUR PLANT 5.58 [00:20:05] WHICH IS THE AVERAGE COST OF TREATING THE SEWAGE. I'LL TAKE ANY QUESTIONS THAT YOU GOT. MONTHLY BILLS ON THE TOP THERE. THE 10,000 LIVING UNIT EQUIVALENTS. WE DON'T KNOW HOW MUCH THAT MR. GROW BUT FULL CAPACITY FOR THEM. THEY WOULD BE CHARGED 129945 A MONTH FOR THE CAPACITY CHARGE, 3.25 FOR THE CUSTOMER CHARGE, THE ESTIMATED VOLUME CHARGE FOR 10,000 COMMUNITIES WHICH WOULD MEAN THE TOTAL MONTHLY BILL WOULD BE TWO-CENT 18,841.21 CENTS. THAT'S 149.22 PER UNIT WHICH IS NOT FAR OFF FROM YOUR FIXED RATE THAT YOU CHARGE OR YOU CHARGE. THE ROUND ROCK I WON'T GO IN THE SAME DETAIL BUT THE CAPACITY CHARGE, CUSTOMER CHARGE, AND VOLUME CHARGE THAT GO ALONG WITH IT. THE AVERAGE OR ESTIMATED REVENUES ONCE IT GETS TO FULL BUILDOUT IS APPROACHING 2.7 MILLION ON AN ANNUAL BASIS. I'LL TAKE ANY QUESTIONS THAT YOU HAVE. >> I'M LOOKING AT THE PAGE. INCREASING OF 655 FOR THE VOLUME BASED RATES. WHAT WERE THE PREVIOUS RATES? >> YOU HAVE NOT CHARGED A WHOLESALE RATE IN THE PAST. >> OKAY. >> THIS WILL BE ESTABLISHING YOUR FIRST WHOLESALE RATE. >> AND THEN AS FAR AS THE AND THE LAST SLIDE OR NEXT SLIDE WHERE YOU HAVE 558 FOR VOLUME CHARGE FOR THE FIRST FIVE YEARS, WE DON'T HAVE ANYTHING IN THE PAST FOR THAT EITHER. >> CORRECT. >> AND 558 IS THE ESTIMATED VOLUME COST FOR YOU OVER THE LAST FIVE YEARS. >> DO WE HAVE ANY AGREEMENTS WITH TAYLOR AND ROUND ROCK TO PROVIDE THEM WHOLESALE WASTEWATER? AND DON'T THOSE AGREEMENTS SPELL OUT WHAT THAT WILL BE? >> GO AHEAD. >> EXECUTIVE DIRECTOR OF COMMUNITY SERVICES FOR THE RECORD. WE HAVE TWO AGREEMENTS THAT ARE ONGOING AND PENNING IN DRAFT FORM AND HAVE BEEN WAITING FOR THIS RATE TO BE FINALIZED THAT YOU HAVE PROBABLY SEEN BEFORE. MIGHT BE THE ONE YOU ARE THINKING OF BUT WE HAVE TWO IN DRAFT FORM AWAITING THIS TO GO THROUGH. I BELIEVE THE ONE WITH TAYLOR THEY HAD OFFERED TO PAY OUR RETAIL RATE TO START, BUT WE WERE SO CLOSE TO FINISHING WE WERE JUST WAITING FOR THIS TO CLARIFY, AND THEN THAT AGREEMENT SHOULD BE UP AND RUNNING IN THE NEXT WEEK OR SO AND BE BROUGHT TO YOU PROBABLY BY NEXT MONTH. >> SO WHAT WAS THE RATE ON THE RETAIL AGREEMENT? >> I HAVE TO LOOK AT WHATEVER IS IN OUR FEE SCHEDULE. IT WASN'T DETAILED. WE DIDN'T CALL OUT AN ACTUAL DOLLAR AMOUNT. IT REFERENCED OUR FEE SCHEDULE SO IF THAT CHANGES IT AUTOMATICALLY CHANGES IN THE AGREEMENT. WE DON'T HAVE TO AMEND ANYTHING. IT WILL BE SOMETHING SIMILAR. >> THAT'S WHAT I WAS TRYING TO I GOER IF OUT IS WHEN WE'RE HERE NOW ESTABLISHING A RATE THAT WAS, LIKE, WHAT WE ESTABLISH A RATE, ARE WE GOING TO HAVE TO JUST NEGOTIATE THIS ONCE OR IS IT GOING TO CHANGE? WILL IT CHANGE YEARLY AS OUR RATE CHANGE? >> SO IT WILL BE IN THE DOCUMENT AT LEAST THE FIR ROUND THAT I PROPOSED THAT THE RATE IS GOING TO BE WHAT'S REFLECTED IN OUR RATE SCHEDULE. SO IF WE UPDATE THAT RATE SCHEDULE IT WILL AUTOMATICALLY CHANGE WHAT IS IN THE AGREEMENT RATHER THAN CALLING OUT THE SPECIFIC DOLLAR AMOUNT TO MAKE SURE THAT THINGS ARE CATCHING UP OR WE'RE NOT HAVING TO AMEND THINGS IN THAT SPECIFIC DOCUMENT. >> RIGHT. AND THEN IF YOU GO FORWARD A SLIDE. ANOTHER SLIDE. THAT'S FINE. ARE WE GOING TO NOT ONLY ASK FOR A CAPACITY CHARGE BUT ALSO A VOLUME CHARGE? IS THAT NORMAL? THIS IS NEW FOR ME. >> IT IS NORMAL, YES. WHEN WE'RE TALKING ABOUT WHOLESALE FOR THE COMMUNITY WATCHING. THE DIFFERENCE IS RETAIL IS WHERE YOU SEND THE USER A BILL. SO ALL OF THE HOMEOWNERS AND BUSINESSES THAT HAVE UTILITY ACCOUNTS WITH YOU, THOSE ARE YOUR RETAIL CUSTOMERS. AND YOU DO HAVE RETAIL CUSTOMERS INSIDE AND OUTSIDE THE CITY LIMITS. IT IS THE CITY OF TAYLOR VERSUS THE CITY OF ROUND ROCK. THE COST STRUCTURE IS ENTIRELY DIFFERENT BECAUSE YOU'RE NOT GOING OUT THERE AND WORKING 2,048 DIFFERENT CUSTOMERS. [00:25:01] YOU'RE DEALING WITH TWO CUSTOMERS. THE WAY YOU CALCULATE WHOLESALE CHARGES IS FUNDAMENTALLY DIFFERENT THAN RETAIL CHARGES. SO AGAIN WHEN YOU LOOK AT IT IT IS BASED ON THE INFRASTRUCTURE COSTS AND THEIR PROPORTIONAL SHARE OF THE INFRASTRUCTURE COST. WE WOULDN'T EXPECT THAT TO CHANGE UNTIL THAT IS PAID OFF. THE VOLUME CHARGE IS SO WE HAVE A FIVE-YEAR AVERAGE SO YOU DON'T HAVE TO GO IN YEAR AFTER YEAR AND CHANGE THE VOLUME RATE BASED ON WHAT THE ACTUAL VOLUME WAS CALCULATED OUT AS FROM THE PREVIOUS YEAR OR A LOOK AHEAD FOR THE NEXT YEAR OR WHATEVER THE CASE MAY BE. DIFFERENT UTILITIES DO THAT DIFFERENT WAYS. NOT UNCOMMON WHATSOEVER TO HAVE BOTH A CAPACITY CHARGE AND A VOLUME CHARGE BECAUSE YOU GOT A LOT OF FIXED COSTS WHETHER THEY SEND YOU A GALLON OF SEWAGE OR NOT AND WHETHER THEY ACTUALLY DEVELOP THOSE HOMES OR NOT. YOU HAVE PUT IN INFRASTRUCTURE. YOU HAVE RESERVED CAPACITY WITHIN THOSE PLANTS. THOSE COSTS ARE REAL AND FIXED FROM YOUR PERSPECTIVE. THOSE ARE COSTS THAT SHOULD BE PASSED ON TO THE WHOLESALE CUSTOMERS REGARDLESS OF HOW MANY CUSTOMERS THEY ACTUALLY BRING ONTO THE SYSTEM. >> AND WE TALKED TO THE CITIES, LIKE, THIS IS SO NEW TO ME TO WHERE I'M A LITTLE HESITANT TO SAY I WILL PASS THIS AND SAY YES AND ALL OF A SUDDEN I GET A PHONE CALL TOMORROW SAYING ARE YOU GUYS TRYING TO GOUGE US HERE? WHAT'S UP. SO DO THEY, DOES TAYLOR KNOW WE'RE LOOK FOR $130,000 ATH NO. BECAUSE IN LAYMAN'S TERMS, IT'S 130,000 JUST TO USE IT. AND THEN AS YOU USE IT, DO THEY KNOW SOMETHING ABOUT THIS SO THEY'RE NOT GOING TO BE BLINDSIDED OR WILL IT BE NEW TO THEM. >>> IN I CAN'T SPIKE TO THEIR KNOWLEDGE IN GENERAL SIN WE ARE JUST SEEING THESE BUT THEY HAVE BEEN VERY WELL AWARE AND IN THE LOOP THAT WE ARE DOING A FULL STUDY TO MAKE SURE WE ARE ACCOUNT FOR ALL OF THE COSTS ON OUR SIDE OF THINGS. I DON'T KNOW IF THEY'RE FAMILIAR ON THEIR END ON WHAT THIS PARTICULARLY LOOKS LIKE. THE I COULDN'T SPEAK TO THEM BEING. >> HOW LONG HAVE WE HAD THESE NUMBERS? STAFF WISE. WHEN DID YOU FIRST SEE THESE? FIVE MINUTES AGO? >> THAT IS CORRECT. >> HOLY CRAP. >> THAT MAY NOT BE TRUE FOR ALBERTA AND THE STUDY PROCESS OF THINGS, BUT WE HAVE BEEN WAITING ON THE CONCLUSION OF ALL OF THAT ANALYSIS TO BE PASSED BY YOU AS A BODY SO I CAN INCORPORATE THOSE INTO THE AGREEMENT. >> I WAS THINKING, LIKE, YOU HAVE SEEN THIS FOR A WEEK OR SO, PHONE CALL TO TAYLOR, LIKE, WE DON'T KNOW. OUR COUNCIL IS CHAOTIC. THEY MAY DO THIS OR MAY NOT. BUT LITERALLY THIS MAY BE THE FIRST TIME. >> CORRECT. FOR ME IN HANDLING THOSE AGREEMENTS. I CAN'T SPEAK FOR THE FINANCE SIDE. >> WAKE UP TOMORROW WITH A $120,000 BILL? >> OKAY. SO FOR THE RECORD. >> THANK YOU FOR AGREEING TO WORK WITH US. >> FIRST AND FOREMOST THE INFRASTRUCTURE IS NOT YET COMPLETE THAT WOULD SERVE TAYLOR. SO UNTIL THE INFRASTRUCTURE IS COMPLETE AND THEY CAN START CONNECTING AND SENDING THEIR FIRST GALLON, WE WOULDN'T START BILLING THEM IN THE FIRST PLACE. SECONDLY THEY COULD ARGUABLY WALK AWAY AND SAY NEVERMIND. WE'RE NOT INTERESTED. Y'ALL CAN HAVE THE CAPACITY BACK. TOOK A RISK AND NEEDED THAT LINE BUILT AND WE JUST OVERSIZED IT FOR THEM AND INCLUDED, YOU KNOW, THEIR CREDIT IN THAT LINE FOR THAT. SO NO, WE HAVEN'T CALLED TAYLOR AND SAID HEY, THIS IS WHAT THE NUMBER ARE LOOKING LIKE. BUT THESE ARE THE NUMBERS. SO KIND OF REGARDLESS OF IF IT'S STICKER SHOCK, EXPENSIVE. IF YOU WANT THE SEWER, THIS IS WHAT OURING CARRYING COSTS ARE TO PROVIDE THAT TO YOU. SO WE HAVE TO START THAT COMMUNICATION NEXT AND WE ARE MONTHS AND MONTHS AND MONTHS AWAY FROM THE WASTEWATER TREATMENT PLAN AND THE SOUTHEAST INTERCEPTER BEING COMPLETED BEFORE TAYLOR WOULD EVEN BE ABLE TO START SENDING THE FIRST GALLON ANYWAY. SO THERE WOULD BE A PERIOD OF TIME FOR THEM TO START RAMPING UP AND GETTING READY FOR THIS. >> THAT DIDN'T TIE THEM TO ANYTHING. >> THEY DIDN'T AGREE WITH THE WHOLESALE CUSTOMER. >> NOT GOING TO CALL YOU OUT -- >> WHAT HE SAID IS EXACTLY MY FEAR. WE WENT DOWN THIS PATH, OVERSIZED THE LINE, DIDN'T COMMUNICATE THEM ANYTHING, SO THEY MAY ALL OF A SUDDEN GO WE'RE NOT DOING THAT AND WE'RE GOING TO WALK. SO OUR RATE PAYERS JUST ATE THE COST OF THE INCREASE BECAUSE WHAT I THOUGHT WE WERE DOING IS I DON'T KNOW SINCE THEY'RE RIGHT NEXT DOOR HAVING SOME SORT OF COMMUNICATION, LIKE, HEY, HYPOTHETICALLY HOW DO YOU SEE THIS WORKING OUT IF WE UPSIZE THIS IN COST. WHAT DO YOU THINK THIS WILL COST PER MONTH? IF THEY'RE THINK, LIKE, I THOUGHT WE WERE JUST GOING TO PAY 655 A GALLON FOR A THOUSAND GALLONS AND THAT WAS IT. THEY MAY WALK. [00:30:03] WE JUST SPENT ALL THIS MONEY ON UPSIZING. SO COMMUNICATION IS EVERYTHING. HOPE THAT WORKS OUT. JASON IS A SMART GUY. IF IT'S NEW TO ME AND I HAVE BEEN HERE SEVEN YEARS AND I HAVE NEVER DONE THIS. I CAN'T IMAGINE TAYLOR CITY COUNCIL IS GOING TO GO WE OWE THEM 2.0 MILLION A YEAR. WE DON'T WANT TO DO THAT. NOW, THAT'S 2 MILLION OUR PEOPLE GOTTA PICK UP. SO I'M JUST HOPING IN THE FUTURE WE'RE COMMUNICATING TO WHEN NEXT TIME WHEN WE ASK A QUESTION, EVERYBODY IS, LIKE, OH, YEAH. THEY KNOW IT'S GOING TO BE 100 AND SOMETHING OR BASED ON SOME BACK OF THE NECK LOOKING AT X. BECAUSE I'M SHOCKED RUNNING THROUGH THIS SIDE. THEY MAY BE SMART SAYING -- MAYBE YOU'RE DOING WORK FOR THEM STEREO AND. >> WE'RE NOT. >> I WILL SAY A COUPLE OF THINGS. THIS IS A STANDARD METHODOLOGY. THIS IS NOT UNIQUE TO HUTTO, TAYLOR, ROUND ROCK. THIS IS A STANDARD METHODOLOGY. AND YES, THERE'S SOME INTERPRETATION YOU GO WITH AND SOME ASSUMPTIONS THAT NEED TO BE VALIDATED AND THOSE SORTS OF THINGS BUT TO THE EXTENT AND I KNOW TAYLOR HAS SET RETAIL WATER RATE. WHILE IT'S DIFFERENT AND YOU CALCULATE THINGS DIFFERENTLY, IT'S THE SAME CONCEPT. YOU HAVE FIXED CHARGE ESSENTIALLY FOR ACCESS TO THE SYSTEM. AND THE VOLUME CHARGE IS FOR HOW MUCH YOU USE OF THE SYSTEM. SO CONCEPTUALLY IT'S NOT FAR OFF FROM THE RETAIL RATES THEY'RE CHARGING THEIR CUSTOMERS. AND AGAIN IT IS A STANDARD INDUSTRY-WIDE METHODOLOGY THE WAY THAT YOU DO THIS. THE OTHER THING I WILL SAY IS THE ALTERNATIVE IS NOT ACCEPT THIS $129,000 CHARGE OR NOT. IT'S ACCEPT THIS $129,000 PER MONTH CHARGE OR GO BUILD YOUR OWN WASTEWATER TREATMENT PLANT. THERE IS A COST FOR THEM TO SERVE THESE CUSTOMERS ONE WAY OR THE OTHER. NORMALLY REGIONAL SYSTEMS WILL PROVIDE A BETTER COST ALTERNATIVE THAN HAVING INDIVIDUAL SYSTEMS FOR EVERYBODY BECAUSE OF THE ECONOMIES OF SCALE ISSUE WITH THESE UTILITY SYSTEMS. THE LARGER THEY GET, THE SMALLER THE PER THOUSAND GALLON COST GETS. >> UM CAN QUESTIONS. SO AND THIS IS VERY NEW TO ME AS WELL. SO IF TAYLOR SAYS THEY DON'T WANT TO PAY THIS 130,000 A YEAR, DOES TAYLOR AND THE CITY OF HUTTO GO INTO A NEGOTIATION AS FAR AS DO WE. >> YEAH. SO THE MY ANSWER IS NO. SO THEY TAKE IT OR LEAVE IT. IT COS WHAT IT CO. SO I DON'T KNOW WHAT WE'RE GOING TO NEGOTIATE. SO THAT'S WHAT I WOULD SAY. AND THE OTHER UTILITIES THAT WE HAVE TO GO PROCURE THEY DON'T NEGOTIATE. THEY SAW IT COS WHAT IT COSTS AND WE HAVE TO PAY FOR IT. I'M NOT SAYING WE HAVE TO SAY WHAT THEY ARE. >> I DON'T THINK SO. I THINK THIS IS COST RECOVERY. DIDN'T SEE ANY COST RECOVERY BUILT INTO IT. THERE IS ADMINISTRATIVE OVERHEAD. THIS IS BUILT IN COST RECOVERY. >> THIS IS JUST REIMBURSING US FOR WHAT WE HAVE TO DO. FACILITY CAPACITY, VOLUME CAPACITY AND ADMINISTRATIVE, WOULD. >> THE REASON THE NUMBERS MAY LOOK HIGHER IN MY LAYMAN'S UNDERSTANDING IS BECAUSE THEY HAPPEN TO BE USING THE MOST EXPENSIVE ASSET WE HAVE IN THE GROUND. SO THAT'S WHY THE NUMBERS ARE SLIGHTLY DIFFERENT FOR THEM IS BECAUSE THEY'RE ACTUALLY USING CAPACITY AND THE MOST EXPENSIVE PROJECTS WE HAVE BUILT IN THE LAST FIVE YEARS. >> AND I THINK YOU KIND OF ANSWERED MY QUESTION. BOTH ROUND ROCK AND TAYLOR THEY ARE SERVICE PROVIDERS. SO THIS IS ALL WITHIN THEIR, THESE NUMBERS ALIGN TO THEIR EXPERIENCE AND THEIR CUSTOMER PROVIDERS. EVEN THOUGH THEY MAY NOT HAVE KNOWN EXACTLY WHAT WE'RE DOING, THIS IS WHAT KIND OF THE INDUSTRY STANDARD IS FOR THIS KIND OF THING AND THEN THIS LOCAL AREA. >> CORRECT. THIS IS A STANDARD WAY OF DOING BUSINESS. I'M NOT AGAIN 'EM FAP WITH TAYLOR'S SYSTEM. BUT IT IS NOT UNCOMMON AT ALL FOR WATER AND WASTE WATER SYSTEMS TO PURCHASE WHOLESALE SERVICE FROM A UTILITY, A REGIONAL UTILITYA NEIGHBOUR, WHATEVER THE CASE MAY BE. THIS IS NOT UNCOMMON WHATSOEVER. IT HAPPENS ALL OVER THE STATE ALL THE TIME. >> GO YOU GO BACK TO THE SLIDE WHERE YOU SHOW THE THINGS THAT YOU ASSUME WHEN YOU'RE SETTING YOUR RATES. [00:35:06] I THINK YOU JUST PASSED IT. >> THIS IS THE INFRASTRUCTURE PIECES. >> THE REASON I'M ASKING THIS IS NEW TO ME AS WELL. YOU MENTIONED METHODOLOGY FOR SETTING RATE BUT WE'RE IN AN UNPRECEDENTED SPUR OF GROWTH IN OUR AREA NOT JUST FOR HUTTO BUT FOR OUR NEIGHBOURS IN TAYLOR. THERE IS GOING TO BE A LOT OF NEW VERY HEAVY ANTICIPATED STRAINS ON WATER INCLUDING HOW DO WE CLEAN IT. HOW HAS YOUR INDUSTRY MODIFIED HOW WE MAKE THOSE ASSUMPTIONS BEING WE'RE ON THE BRINK OF A MUCH LARGER STRAIN ON ALL OF OUR RESOURCES BECAUSE AT THE END OF THE DAY THE WATER IS THE WATER THAT WE HAVE. SO HOW HAS YOUR INDUSTRY MODIFIED HOW YOU ADVISE MUNICIPALITIES ON THIS KIND OF PRICING FOR A LOT OF STRAIN ON OUR NATURAL RESOURCES AND THE COST TO TREAT IT. >> SURE. SO WHAT WE DO IS WE TAKE A LOOK AT THE COPROVIDED BY ENGINEERS ESTIMATES, OPERATING COSTS PROVIDED BY YOUR STAFF FOR YOUR EXISTING WASTEWATER TREATMENT SYSTEMS, THOSE SORT OF THINGS. WE TAKE ALL OF THOSE AGGREGATED COST OF DATA AND PUT IT THROUGH OUR METHODOLOGY TO FIND OUT HOW THAT SHOULD BE DISTRIBUTED THROUGH THE DIFFERENT USES OF THE SYSTEM WHETHER THEY ARE RETAIL OR WHOLESALE. SO WE HAVEN'T ACCOUNTED FOR THE STRAINS ON THE SYSTEM ESSENTIALLY ALTHOUGH RECOGNIZING AGAIN IF YOU LOOK RAT THE CITY MANAGER'S POINT LINE 13 THERE, THAT IS YOUR MOST EXPENSIVE ASSET AT $138 MILLION. AND TAYLOR WILL BE USING 9.33% OF THAT FOR A CAPACITY STANDPOINT FROM THE ENGINEERS, AND ALSO WE DO THAT. WE TAKE A LOOK AND SEE HOW DOES IT WORK OUT PROPORTIONALLY SPEAKING. SO THAT IS THE LION SHARE OF THEIR CAPACITY CHARGE IS THE ACTUAL TREATMENT PLANT ITSELF. THE LINES ADD UP BUTS IT THE WASTEWATER TREATMENT PLANT ITSELF WHICH IS INCREDIBLY EXPENSIVE AND ONE OF THE REASONS WHY I SAY THIS IS ONE OF THE REASONS WHY COMMUNITIES LOOK TO COORDINATE ON THESE THINGS OFTEN IS BECAUSE THESE PLANTS ARE INCREDIBLY EXPENSIVE, AND BEING ABLE TO SHARE THE BURDEN OF SOME OF THOSE COS IS HELPFUL. BUT TO ANSWER YOUR QUESTION DIRECTLY WE'RE NOT DEVELOPING THE COST THEMSELVES. WE'RE ALLOCATING THE COS OUT TO THE DIFFERENT USERS AS PART OF THE METHODOLOGY. >> SO IT IS ALL BASED ON HISTORICAL DATA AND WHAT WE CAN GATHER TODAY BUT WHEN YOU'RE FORECASTING OUT, HOW DOES THE STRENGTH THIS WAS MY QUESTION. HOW DOES THAT INFORM HOW YOU GUYS ADVISE US AS CITIES? >> SO WE WORKED OFF OF YOUR WASTEWATER TREATMENT MASTER PLAN TO LOOK AND SEE WHAT ARE THE ENGINEERS LATE QUESTION COSTS PER PROJECTS. OBVIOUSLY THESE ARE IN PLACE OR YOU HAVE COSTS ALREADY BID. OTHERS ARE ASSUMED COSTS BECAUSE THEY'RE ENGINEER ESTIMATES FOR FUTURE PROJECTS THAT HAVE YET TO BE BID. BUT WE TAKE THAT COST DATA AND LOOK TO SEE HOW DOES IT ALLOCATE OUT. WE DON'T GENERATE THE COST DATA ITSELF. WE TAKE ALL THE DATA, PUT IT INTO OUR METHODOLOGY AND ALLOCATE IT OUT TO THE USERS TO PAY IT. >> SO YOU'RE ASKING FOR ACTION ON THIS. >> EITHER Y'ALL CAN ADOPT IT AND APPROVE IT OR TAKE IT UNDER ADVISEMENT. THE MAIN THING IS THAT WE NEEDED TO GET THE CALCULATIONS DONE SO THAT WE WOULD KNOW WHAT THEY ARE AND CAN MOVE FORWARD FROM HERE. >> IS THERE ANY ADVANTAGE FOR WAITING FOR ANY UPDATE FROM STAFF AND/OR THE CITY OF TAYLOR OR ROUND ROCK? IS THERE FEEDBACK THAT WE CAN TAKE INTO CONSIDERATION? >> MY ANSWER TO THAT IS THERE WOULDN'T BE ANYTHING FROM STAFF TO LOWER THE NUMBERS. >> I MEAN JUST INTERACTION FROM TAYLOR AND ROUND ROCK. YEAH. I MEAN BASICALLY WHAT I WOULD VIEW THIS AS, AND Y'ALL KNOW I'M USUALLY VERY DIPLOMATIC, BUT I VIEW THIS AS THIS IS WHAT IT COSTS. THIS IS WHAT IT COSTS. SO WE'RE NOT OVERCHARGING. WE'RE NOT UPCHARGING. IT IS LITERALLY THE COST THE PORTION TO YOUR SHARE OF THE INFRASTRUCTURE THAT YOU ARE SPECIFICALLY USING. THAT'S WHAT IT COST. >> MY CONCERN ISN'T HOW BIG THE NUMBER IS. MY CONCERN IS MORE OF ARE WE ASSUMING ENOUGH FOR WHAT'S COMING. >> ASSUMING ENOUGH RATE, THE PRICE? >> WHETHER EVEN THE USAGE AND THE COST. I MEAN I UNDERSTAND THE INFRASTRUCTURE IS FIXED BUT ON THE USAGE COST BECAUSE WHEN THE [00:40:03] DEMAND GOES UP, AND THEY HAVE TO PRODUCE MORE OR USE MORE AND IT'S A BIGGER STRAIN, THE COST GOES UP FOR EVERYBODY. >> SO LET'S SAY THAT WE'RE SEEING OUR PLANT OPERATING COSTS HIGHER THAN ANTICIPATED. THAT WOULD GENERALLY RESULT IN US DOING A NEW RATE INCREASE. >> SO WE WOULD JUST BE ABLE TO. >> TO MAKE IT UP. RIGHT. >> AND MY SECOND QUESTION WAS IS THERE ANY ADVANTAGE TO GETTING THIS NOW FOR CITY STAFF MOVING FORWARD. IN OTHER WORDS I AM TRYING TO UNDERSTAND SHOULD WE DO IT TODAY OR WAIT A COUPLE WEEKS. YOU MENTIONED THERE'S NOT SOMETHING THAT WILL COME OUT FROM STAFF OR ANY OTHER CITY BUTTIVE STAFF IF THEY GET THE DIRECTION TODAY IS THAT AN ADVANTAGE TO GET THEM MOVING ON THEIR NEXT STEPS? >> CORRECT. WITH THE TWO AGREEMENT WE HAVE PENDING, THIS IS THE PRIMARY AND ONE OF THE THREE THAT HAVE TO GO FOR LEGAL CLEARANCE IS THIS RATE ITSELF. OTHERWISE THEY ARE KIND OF JUST SITTING ON MY END, AND I DON'T HAVE ANYTHING ELSE TO ACCEPT ON THE DELAY UNLESS CITY MANAGER HAS SOME SORT OF ADVANTAGE OR ANALYSIS WE CAN LOOK AT. FROM A STAFF SIDE WE ARE LOOKING TO PLUG AND PLAY THE NUMBERS AND LET OUR LEGAL TEAMS FINALIZE THINGS. >> I HAVE A THIRD QUESTION. >> A 7TH QUESTION. >> MAYBE. >> MY FIRST QUESTION. MAYBE MY SECOND. IS IF WE DO MOVE ON THIS, THEN IT IS ESSENTIALLY US TELLING TAYLOR AND ROUND ROCK HERE IS WHAT IT'S GOING TO BE. AND IF WE DON'T WAIT AND SAY COMMUNICATE TO YOUR POINT, WE WILL STILL BE WHERE WE ARE NOW WHICH IS NOTHING HAS BEEN APPROVED BY COUNCIL, BUT WHAT DO YOU GUYS THINK? IT IS KIND OF RELEVANT AND THEY'LL EITHER GO FOR IT OR NOT WHETHER WE APPROVE IT OR NOT. >> I GOT. >> A SECOND QUESTION. >> A LITTLE SOMETHING SOMETHING. >> I GOT A LITTLE SOMETHING SOMETHING. SO CORRECT ME IF I'M WRONG, JAMES, BUT ESSENTIALLY IT'S HEY, LOOK. WE HAVE THIS OTHER LINE HERE. THE CITY OF HUTTO IS OPEN FOR BUSINESS F YOU WANT IT, YOU WANT IT. IF NOT, DON'T WORRY ABOUT IT. BUILD IT YOURSELF. >> THERE'S AN ACTUAL AGREEMENT IN PLACE BETWEEN US AND THE CITY OF TAYLOR WHERE THE COUNTY GAVE ADDITIONAL ARPA FUNDS TO HUTTO TO CONTRIBUTE TOWARD THE COST OF THE SOUTHEAST WASTEWATER INTERCEPTER WHICH RUNS ALONG THE HIGHWAY AND FOR TAYLOR TO BE APPORTIONED SOME CAPACITY BASED OFF THAT CONTRIBUTION. SO WE HAVE DONE THAT. THAT'S THE 2,000LEV. THE THAT WOULD BE A VERY BIG PLANT. I DON'T WANT TO -- >> THAT'S A LOT. 2,000LUES. AND THAT IS WHAT THAT CAPACITY IS DEALING WITH. IN THAT AGREEMENT, IT SAYS THAT WON THE LINES GET BUILT, ONCE ALL THE INFRASTRUCTURE IS IN PLACE, THERE WILL BE ANOTHER AGREEMENT COMING FORWARD THAT WILL ESTABLISH THE RATES HOW WE ACTUALLY RECEIVE THE WASTEWATER, ALL THE TECHNICAL STUFF. SO THIS IS THE FIRST STEP IN US GOING DOWN THAT PATH OF SAYING NOW WE KNOW WHAT THE RATES ARE SO NOW WE HAVE TO START NEGOTIATING THE AGREEMENTS SO WHENEVER THE INFRASTRUCTURE IS ALL IN PLACE, WE ARE 2,000LUES IS YOUR 2,000LUES. >> SO NOW THE EXPERT ARE SAYING THIS IS WHAT WE PROJECT THE COST TO BE. AND TO YOUR POINT AFTER A YEAR THE RATE GO UP, THEN WE ADJUST IT. >> WILL BE WHATEVER IS IN THE CONTRACT. THEY NEGOTIATE HEY, THIS IS A LOT OF MONEY. WE WANT TO LOCK IT IN FOR FIVE YEARS. SO MAYBE WE COMEBACK AND COUNCIL SAYS INSTEAD OF 558 WE SET IT AT 565. THAT'S NEGOTIATION. BUT WHAT I DON'T SEE FOR NEGOTIATION IS I DON'T WANT TO PAY THE $129,000 A MONTH. TO ME THAT DOESN'T SEEM LIKE IT'S MUCH OF A NEGOTIATION. SO WE HAVE TO -- I'M SORRY. GO AHEAD. >> I'M COMFORTABLE WITH THE COST. I GET HOW YOU CAME TO YOUR ESTIMATES BECAUSE IT'S ACTUAL CONSTRUCTION COSTS WITH WHAT WE THINK THEY ARE AT 70, 80, 90% COMPLETE. I ALSO KNOW BASED ON HISTORICAL DATA WHAT WE FORESEE THE COST OF TREATING THE WATER IS GOING TO BE HOW WE COME UP WITH THE RATES. MY ONLY THING IS JUST THE COMMUNICATION PART. AND IT IS WHAT IT IS. SO I DON'T MIND FOR ME I DON'T MIND PASSING THIS I DON'T KNOW HOW TO SAY T BASICALLY PASSING THIS STUDY TO WHERE THERE IS [00:45:06] FLEXIBILITY. WHAT I DON'T WANT TO DO IS IF WE SAY I DON'T KNOW HOW TO MAKE A MOTION TO SAY WE'LL DO 558 A MONTH. THEY SAY INSTEAD OF 129 AND 558 CAN WE PAY YOU 100 AND 650. WE'RE BACK APPROVING IT AGAIN. SO WE'RE APPROVING AS YOU GUYS ARE NEGOTIATING. SO WHAT I WOULD ALMOST HAVE YOU DO IS SAY WE AGREE WITH THE NUMBERS AND STAFF HAS TO COME OUT AND SOMEHOW MAKE IT WHOLE. SO OUR RATEPAYERS SUBSIDIZING TAYLOR. I DON'T WANT THAT. I ALSO DON'T WANT TAYLOR TO SAY HEY, POUND SAND. WE'LL DO IT OURSELVES BECAUSE WE'RE PAYING FOR T I THINK THAT'S UP TO SARAH TO NEGOTIATE THAT. I DON'T KNOW IF IT'S POSSIBLE FOR US TO PASS LIKE I SAID THE STUDY WHERE YOU GUYS CAN GO BACK AND SAY LOOK. HERE IS THE INFORMATION. COUNCIL AGREES WITH IT. BASICALLY HOW DO YOU WANT TO PAY FOR IT. DO YOU WANT TO PAY FOR IT, LIKE, WHAT IF TAYLOR CAME IN AND SAID HEY, LOOK. WE WOULD LIKE TO WRITE YOU THE MONEY TODAY. AND WE DON'T WANT TO PAY 129. YOU KNOW, I DON'T KNOW HOW THESE NEGOTIATIONS GO BECAUSE I HAVE NEVER BEEN A PART OF ONE OF THOSE, BUT. >> SO IN MY MIND. >> DOES THAT MAKE SENSE WHAT I'M SAYING? >> YES, IT DOES. I THINK YOU CAN ABSOLUTELY JUST ACCEPT THE STUDY AND NOT TAKE AN ACTION TO AMEND THE FEE SCHEDULE TO INCORPORATE THE WASTEWATER WHOLESALE RATE. SO BECAUSE WE HAVE TO HAVE IT IN THE FEE SCHEDULE BEFORE WE CAN CHARGE IT. BUT IF YOU ACCEPT THE STUDY AND THEN THE AGREEMENTS CONTINUE FORWARD ESTABLISHING THESE RATES AND THE AGREEMENT, THE AGREEMENT WOULD ALLOW US TO COLLECT IT BECAUSE IT'S IN THE AGREEMENT, RIGHT. AND THE ONLY REASON THAT WE WOULD ACTUALLY NEED IT TO BE FULLY ADOPTED IN THE FEE SCHEDULE ITSELF WOULD BE FOR A FUTURE UNKNOWN WHOLESALE CUSTOMER THAT WANT TO JUST COME IN AND CONNECT AND THEY'RE, LIKE, HEY, WE WANT TO CONNECT BUT THERE'S NO FEE FOR ME TO PAY FOR THAT ESTABLISHED. >> IT'S A GOOD POINT. WE COULD ADOPT THIS AND SAY JUST GOING FORWARD HERE'S THE RATE. THAT'S NOT PRECLUDING A NEGOTIATION BECAUSE IF I WAS TAYLOR I WOULD SAY I DON'T WANT TO PAY 129. WE COULD PAY $7,000 A THOUSAND GALLONS AND 9,000 TO OUR PEOPLE AND YOU KNOW WHAT I MEAN? THEY WILL HAVE THEIR OWN CALCULATION. SO I GUESS WE COULD ADOPT THIS, AND THAT DOESN'T STOP YOU ALL FROM NEGOTIATING, COMING BACK TO US WITH AN AGREEMENT WHERE YOU'RE SAYING INSTEAD OF 558 WE DID X AND ALL THAT MEANS IS YOU HAVE SOMETHING POSTED THAT YOU COULD THEN COMMUNICATE TO PEOPLE A A BASIS TO START NEGOTIATING. >> CORRECT. AND I WILL SAY THAT, AND THIS ISN'T ANY SECRET SINCE IT'S A PUBLIC MEETING, BUT I AM AS A STAFF MEMBER GOING TO BE VERY DISINCLINED TO LEAN TOWARD A RECOVERY AND VOLUME METRIC AND GIVE UP THE, YOU KNOW, PAY IT ALL. >> YEAH, BECAUSE ONE IS GUARANTEED AND ONE IS NOT. >> THAT'S RIGHT. AND THEY WILL BE LIKE WE DON'T EVEN HAVE 2,000LUES OUT THERE RIGHT NOW. WELL, I DIDN'T HAVE ALL THE CAPACITY THAT I NEEDED THE NEW WATER SYSTEM FOR BUT I STILL HAVE TO PAY FOR ALL THE VOLUME OF WATER WHETHER I USE IS IT OR NOT. THAT'S THE COST OF DOING BUSINESS. >> RIGHT. BECAUSE THE MOST EXPENSIVE GALLON TREATED IS THE FIRST GALLON YOU TREAT. THE LEAST EXPENSIVE IS YOUR LAST GALLON. >> THAT'S RIGHT. I COULD SEE SOME SORT OF A NEGOTIATION WHERE WE HAVE A BREAK POINT IN THE FUTURE. AND I AM 100% FOR AS WE RETIRE DEBT REDUCING THE FIXED COST. BUT OTHER THAN THAT, TO ME IT IS NO DIFFERENT THAN IF THIS WERE RECHARGE STANDING HERE IN FRONT OF US AND SAYING YOU GOTTA PAY 4 AND A HALF MILLION DOLLARS A YEAR FOR THIS NEW WATER SOURCE WHERE YOU USE A DROP OF IT OR NOT, THAT'S WHAT YOU'RE PAYING, SO. >> A BENEFIT TO OUR RETAIL CUSTOMERS BY HAVING THIS AGREEMENT? >> WELL, IT'S MORE REVENUE COMING IN. 100%. AND THAT IN TURN HELPS US NOT HAVE TO PUT THE PRESSURE ON RATES FOR THE OTHER CUSTOMERS TOO. >> AND OUR RETAIL CUSTOMERS. >> IS THIS FOR THE RECORD INTO ANY OF OUR ASSUMPTIONS SO FAR? >> THE REVENUE PROJECTIONS ARE NOT FOR THE RECORD IN. >> NO, SIR. NOT AT THIS TIME IT'S NOT. I DID NOTE THERE IT SAYS RECOMMEND AS NEEDED. I JUST WANT TO BE REALLY CLEAR THAT IF WE ADOPT THESE NUMBERS HERE WE'RE NOT LOCKING IN FOR FIVE YEARS. WE CAN STILL INCREASE AS THE USAGE RATE CAN STILL FLUCTUATE. >> PROPER NOTICE AND A PROPER STUDY YOU CAN RESET THE RATE AS OFTEN AS YOU LIKE. >> THE AGREEMENT WE'RE GOING TO DO WILL LOCK IT IN. >> NOT THE USAGE RATE. THE INFRASTRUCTURE RATE. >> NO. THIS WILL BE THE PUBLISHED RATE. THEY WILL NEGOTIATE THE PUBLIC RATE WHICH MAY OR MAY NOT BE LIKE THIS AND MAY BE A [00:50:01] MULTIPLIER IF THIS GOES, OUR RATE GOES UP AND THEIR RATE GOES UP, IT'S WHATEVER SARAH IS NEGOTIATING. >> ALL ON SARAH. >> OKAY. >> WELL, EVERY TIME YOU'RE HERE WE DRAG THIS BABY OUT. >> I DID MY PART. >> WELL, I'LL MAKE A MOTION TO PASS THE STUDY AND THE RATES AS. >> SECOND. >> WHO GOT THAT ONE. >> MAYOR TRUMPS. >> HE'S A STRONG. >> HIS BUSINESS. THANKS, JASON. >> BUT MIKE, DO I APPRECIATE YOUR POINT ABOUT NOT LETTING OUR RATE PAYER GELT HIT WITH IT. WE'RE COVERING THE COST. >> NOT AN ADDITIONAL BURDEN. NOT AN ADDITIONAL BURDEN. >> TO BE QUITE HONEST WE ARE PAYING RIGHT NOW THAT'S ONE OF THE REASONS OUR WATER, WE TODAY ABOUT WATER GOING UP $200 A MONTH AND DIDN'T GO THAT HIGH BUT IT'S BECAUSE OF EXPANSION. >> ON THE WATER SIDE. THE EXPANSION IS THE BIGGEST FACTOR. >> YES. IN LAYMAN'S TERMS THEY DON'T LOOK AT IT LIKE THAT. IT'S JUST A WATER BILL. WHAT I'M GETTING AT IS WE ARE ALREADY PAYING THAT INCREASE TODAY LOOKING AT CHARGING TAYLOR AND NOT REALLY ROUND ROCK BUT TAYLOR IN THE FUTURE WHEREAS RIGHT NOW OUR PEOPLE ARE ALREADY PAYING THAT CAPACITY THAT WE HAVE EAR MARKED AND THEY CAN'T USE. >> CORRECT. >> PLEASE CALL THE VOTE. >> COUNCIL MEMBER MORRIS. >> AYE. >> COUNCIL MEMBER KING. >> AYE. >> COUNCIL MEMBER REYNOLDS. >> AYE. >> MAYOR SNYDER. >> AYE. >> COUNCIL MEMBER THORNTON. >> AYE. >> MAYOR PORTERFIELD. >> AYE. >> COUNCIL MEMBER ZEPEDA. >> AYE. >> MOTION PASSES 7-0. [6.3. Presentation and discussion related to a mixed-use development known as 3349 Business Holdings, located within the City of Hutto's extraterritorial jurisdiction and outside the City of Hutto's wastewater Certificate of Convenience and Necessity. (Mallik Avula)] NEXT WE HAVE ITEMS 6.23. >> THANK YOU. >> PRESENTATION AND DISCUSSION RELATED TO A MIXED USE DEVELOPMENT KNOWN AS 3349 BUSINESS HOLDINGS LOCATED WITHIN THE CITY OF HUTTO EXTRA TERRITORIAL JURISDICTION AND OUTSIDE OF THE CITY OF HUTTO'S WASTE WATER CERTIFICATE OF CONVENIENCE AND NECESSARY, IT. >> MAYOR AND COUNCIL PER COUNCIL DIRECTION I THINK MIDDLE OF LAST YEAR WE HAVE BEEN DIRECTED TO BRING ANY PROJECTS TO YOU FOR PRESENTATION THAT FIT THESE CIRCUMSTANCES, SO LOCATED IN OUR ATJ BUT OUTSIDE OF OUR CCNS. WE HAVE 3349 BUSINESS HOLDINGS HERE. THEY HAVE A BIT OF A SLIDE SHOW AND WILL BE ABLE TO ANSWER ANY QUESTIONS. AS A REMINDER, STAFF IS ASKING FOR A MOTION TO EITHER PROCEED WITH PROCESSING SO AT THIS POINT WE HAVEN'T RUN A SER. NONE OF THOSE ITEMS HAVE HAPPENED OR A MOTION FOR US NOT TO PURSUE THE DEVELOPMENT FORWARD. >> REAL QUICK, DOTTIE. IN THIS POSTING WE'RE NOT ABLE TO TAKE. >> YES, YOU ARE BECAUSE IT SAYS PRESENTATIONS AND RELATED ACTION. SO ANYTIME YOU HAVE PRESENTATION AND DISCUSSION. >> IT JUST SAYS PRESENTATION AND DISCUSSION RELATED TO. >> AM I MISSING ONE. >> BUT THE TITLE. >> OH, I SEE BECAUSE IT'S UNDER PRESENTATIONS AND RELATED ACTION. >> AND RELATED ACTION. >> I GUESS WHATEVER YOU'RE GETTING READY TO SHOW US YOU PROBABLY DON'T WANT TO BE OUTSIDE THE CITY LIMITS. YOU WANT TO BE INSIDE THE CITY LIMITS AND DON'T WANT TO BE A PART OF THAT WHOLESALE AGREEMENT, HUH? >> GOOD EVENING MAYOR AND COUNCIL MEMBERS. THANK YOU FOR GIVING US AN OPPORTUNITY TO TALK ABOUT OUR PROJECT. WE HAVE BEEN TALKING TO THE STAFF AND CITY MANAGER OVER THE LAST COUPLE OF YEARS WAITING FOR THE SOUTHEAST LOOP TO BE COMPLETED. AND MYSELF, I AM A DEVELOPER HERE IN CENTRAL TEXAS. WE HAVE A LOT OF PROJECTS IN GEORGETOWN, TAYLOR, AND HUTTO. HUTTO IS THIS PROJECT WE ARE GOING TO START AND ONE PROJECT IN TAYLOR AS WELL. WE HAD INITIAL CONVERSATION ABOUT THIS PARTICULAR PROJECT. THIS IS ON THE SOUTHEAST LOOP. AND WE WORKED WITH THE CITY STAFF AND KIND OF GIVING THE TEMPORARY EASEMENT FOR THE WASTEWATER INTERCEPTOR THAT YOU GUYS WERE ALREADY TALKING ABOUT AND THE COST ALLOCATION OF THAT. SO IT IS A ETJ PROPERTY. WE WANTED TO HAVE A CONVERSATION HERE ABOUT WE ARE LOOKING FOR WASTEWATER SERVICES. AND WE WOULD LIKE TO BE WORKING WITH YOU, WITH HUTTO AND TRYING TO BRING MORE TACK DOLLARS TO THE CITY OF HUTTO. SO WE HAVE BEEN IN OUR INITIAL CONVERSATION WE WERE TALKING AND [00:55:05] SOUTHEAST LOOP HAS NOT BEEN COMPLETED. NOW SINCE IT HAVING FINAL, IS COMING CLOSER SO WE ARE GETTING A LOT OF INTEREST FROM END USERS SO THEY WANTED TO COME HERE AND POSITION THEMSELVES HERE, AND THERE IS A LOT OF PROJECTS GOING ON. I THINK 2,000 HOMES OF DEVELOPMENT GOING UP ACROSS VERY CLOSE TO OUR PROPERTY AND ANOTHER 4,000 SINGLE FAMILY HOMES COMING IN TAYLOR MEADOWS. SO SOME OF THE RETAIL PROVIDERS ARE INDUSTRIAL AND MULTIFAMILY FOLKS ARE REACHING OUT TO US AND TRYING TO SEE WHAT THEY CAN DO. THISES A PROJECT VERY CLOSE IN THE WASTE WATER INTERCEPTERS IS GOING THROUGH THE PROPERTY, SO WE WANTED TO SEE IF HUTTO WILL BE PROVIDING SERVICES, WOULD LIKE TO HAVE A SIMILAR TREATMENT THAT THEY HAVE. BUT AGAIN WE ARE OPEN FOR DISCUSSION. CAN TALK ABOUT THIS PROJECT WHICH WE JUST RECENTLY STARTED HAVING CONVERSATIONS WITH THEM. THEY KNOW ABOUT THIS AREA AND A LOT OF THINGS THAT IS GOING ON IN THIS AREA. SO THIS IS OUR TOTAL. WE HAVE OVER 102 ACRES ON THIS. INITIALLY WE HAD 160 ACRES, BUT AGAIN FOR THE COMMUNITY GOOD AND MAKE THE SOUTHEAST LOOP HAPPEN, WE WORKED WITH CITY OF THE COUNTY TO PROVIDE THE RIGHT OF WAY FOR THE SOUTHEAST LOOP, AND WE MADE IT HAPPEN, AND WE HAVE 102 ACRES LEFT ON THIS PROPERTY. WE HAD INITIAL CONVERSATION, AND I THINK THE CITY STAFF KIND OF RECOMMENDED GOING WITH A CENTER AND NEIGHBOURHOOD. WE HAVE A CONCEPT INITIAL PLAN, BUT WE ARE WILLING TO WORK, MAKE SOME CHANGES HERE, AND ONE OF THE THINGS I WANT TO MENTION HERE, THERE IS A SMALL 30-ACRE PARCEL THAT IS IN THE CITY TAYLOR AGAIN SINCE WE ARE WILLING TO TAKE UP THE 2,000LEUS IF POSSIBLE WE WILL TAKE IT. I AM NOT COMPETING BUT WE JUST HAVE THE PROJECT THERE. WE HAVE A LOT OF END USERS ASKING FOR WASTEWATER SERVICES, AND THIS IS A GOOD LOCATION, AND PEOPLE WANT TO COME HERE AND GOING TO BE A GOOD GROWTH OPPORTUNITY FOR HUTTO. AND SO THIS IS KIND OF A CONCEPT PLAN WE HAVE AND PRESENTED TO STAFF AND THE STAFF KIND OF ADVISED US TO COME AND TALK TO THE CITY COUNCIL, AND HERE WE ARE. AND THIS IS ONLY FOR DISCUSSION SAKE. AND AGAIN THERE'S SOME VARIOUS OPPORTUNITY. WE ARE ALSO WILLING TO WORK WITH THE CITY OF HUTTO CHAMBER OF COMMERCE. AND IF THERE IS ANYBODY HIGH END USERS THAT WANTED TO COME HERE LIKE MAYBE A BIG RETAIL SHOPS OR, LIKE, A HOSPITAL OR SOMETHING THAT WE ARE WILLING TO WORK AND TRY TO SEE HOW WE CAN BRING THOSE TYPE OF JOBS TO THE THECITY OF HUTTO. SO THIS IS MY BRIEF PRESENTATION. I CAN INTRODUCE JUSTIN AND WILL SO THEY CAN TALK ABOUT THIS AREA AND THEY ARE QUITE FAMILIAR WITH THIS AREA AND CAN PROVIDE SOME INSIGHT AS WELL. >> THANKS. >> THANK YOU. >> MADE A NOTE. BEFORE THAT I JUST WANT TO MAKE ONE COMMENT. SO THE 30 ACRES AT 3349, I HAD A CONVERSATION WHEN HE WAS THE PLANNING DIRECTOR FOR TAYLOR. HE CLEARLY STATED THAT AS PART OF THE CITY INCREMENT WE SHOULD BE ABLE TO TAKE SERVICES, YOU KNOW, FROM HUTTO, SO THAT IS WHEN WE STARTED A DIALOGUE WITH THE CITY MANAGER. >> YOU'RE TALKING ABOUT TOM? >> TOM. >> HE SAID WHAT NOW? >> THERE WAS SOME INTERCITY AGREEMENT. >> OH, BETWEEN US. OKAY. >> AS IT IS RIGHT ACROSS FROM 3349 AND IN FUTURE. HAVE BEEN WORKING CLOSELY WITH KEITH FROM SOUTHEAST LOOP ON A PROJECT. SO WITH THAT BEING SAID IF THERE IS ANY POSSIBILITY WE WOULD LIKE TO GIVE THAT BUSINESS TO HUTTO. >> OKAY. >> THANK YOU. >> I AM THE ENGINEER OF RECORD ON THE HALCYON PROJECT JUST EAST OF THE HIGHWAY. SO I HAVE BEEN WORKING WITH THEM RECENTLY TO TAKE A LOOK AT THIS PROJECT, FIGURE OUT HOW TO BE THE BEST WAY TO MOVE IT FORWARD. [01:00:01] ONE OF THE FIR DISCUSSION POINTS IS THE WASTEWATER SERVICE FOR THE PROJECT. BEING THE ENGINEER ON THE PROJECT, I AM FAMILIAR WITH THE WHOLESALE AGREEMENT THAT WAS COORDINATED BETWEEN LENAR AND THE CITY. I AM FAMILIAR WITH THE TAYLOR MEADOWS PROJECT ACROSS 3349 THAT I BELIEVE HAD STARTED A RETAIL AGREEMENT. I DON'T KNOW IF THEY WERE FULLY EXECUTED OR NOT. BOTH OF THESE PROJECTS ARE NOT IN THE CITY SO ONE OF MY FIRST QUESTIONS TO HIM WAS WHAT IS THE PLAN. TRYING TO FIGURE OUT WHAT THE CITY'S HOPES, DESIRES, COMMENTS, CONCERNS ARE FOR THIS PROJECT AND ABLE TO MAKE IT GO FORWARD. IS THIS SOMETHING THAT CAN STAY IN ATJ, WHOLESALE SERVICE, RETAIL SERVICE. IS IT ONLY GOING FORWARD IF IT'S ANNEXED. IF SO WHAT ARE THE ZONING. WHAT DO WE NEED TO DO TO OUTLINE A NEW LAND PLAN AND SUBMIT A SER. I AM JUST TRYING TO GET CAUGHT UP, FIGURE OUT WHAT Y'ALL'S COMMENT AND CONCERNS ARE SO WE CAN HELP THEM AND HELP YOU MAKE THIS A REALITY. >> PERFECT TIMING TONIGHT. YOU'RE GONNA SEE WHY IN A MINUTE I THINK BUT I'LL LET EVERYBODY ELSE GO FIRST. YOU GUYS HAVE ANY COMMENTS OR? >> THIS IS JUST FOR WASTEWATER NOT ANY WATER. >> IT WOULD JUST BE WASTEWATER. IT'S JONAH WATER SERVICE. >> I YIELD MY SECOND QUESTION. YIELDING IT. OKAY. HE'S DONE. >> DIDN'T SAY YIELD IT HIS THIRD AND FOURTH. >> YEAH. GOT ANY COMMENTS OR ANYTHING. >> GO FOR IT. >> TO ME THIS IS NOT LIKE LENAR. I HATE WHEN CITIES TELL ME IT'S PRECEDENT SETTING BUT IT KIND OF WAS IN THAT THEY WERE SO FAR DOWN THE LINE THAT IF WE COULD HAVE FOUND A WAY I WOULD BE IN FAVOR OF SOME SORT OF SERVICE AGREEMENT. HAVING SAID THAT IF YOU GO BACK A SLIDE TO -- NOW I HAVE SOME QUESTIONS. HAVE YOU GUYS ALREADY GIVEN THE RIGHT OF WAY FOR THE WASTEWATER LINE OR ARE YOU STILL WORKING ON THAT? >> THE RIGHT OF WAY FOR THE WASTEWATER. >> WE'RE DONE WITH THEM? ARE WE STILL IN EMINENT DOMAIN? >> I DON'T THINK SO. SARAH,IC DO YOU KNOW? >> WE ALREADY PROVIDED THE TEMPORARY CONSTRUCTION EASEMENT FOR THE WASTEWATER INTERCEPTER. >> I WAS GOING TO SAY. SOME OF THIS WE HAVE RUN INTO THINGS AND IF WE CAN WORK IT OUT PRETTY QUICK, FINE. OTHERWISE I HATE EMINENT DOMAIN BUT I HAVE BEEN PUSHING THE IS CIT MANAGER, LIKE, TIME IS MONEY. >> WE DON'T WANT TO IN THAT CITY AS WELL. WE WANT TO, WOULD BE WITH THE CITY AND THE COUNTY AS WELL. >> I APPRECIATE THAT. THE PART THAT'S IN TAYLOR, IS THAT IN TAYLOR ETJ OR CITY LIMITS. >> ETJ. >> OKAY. THAT'S THE START A WAR BUT IT WOULD BE VERY ODD TO ME TO HAVE A DEVELOPMENT WHERE WE WERE TRYING TO PROVIDE WASTEWATER WHERE PART OF IT IS IN THE CITY OF HUTTO AND PART OF IT IN THE ETJ SOON TO BE TAYLOR CITY. I THINK MY IDEAL VISION WE WOULD HAVE TO WORK OUT SOME SORT OF SWAP WITH TAYLOR WHICH WE HAVE DONE WITH ROUND ROCK BEFORE BECAUSE I DON'T WANT YOU GUYS TO GET A PETITION TO GET OUT BECAUSE ANYTIME SOMEONE DOES THAT WE SUE THEM AND LOCK IT UP BECAUSE WE DON'T AGREE WITH HOUSE BILL 2038. SO I WOULD RATHER WORK SOMETHING OUT WITH THE IS IT I OF HUTTO AND WE GET ALONG WITH TAYLOR REALLY WELL, BUT WE LIKE TO BECAUSE AS YOU HEARD WE DON'T WANT TO BLIND SIDE THEM BUT I WANT TO WORK OUT A DEAL WITH THEM AND GET THE WHOLE DEVELOPMENT IN THE CITY JUST SO WE HAVE A CLEAN AGREEMENT. AND THIS SLIDE HERE THIS IS WHY I THINK IT'S VERY IMPORTANT FOR YOU ARE GUYS TO BE HERE. IT'S GOING TO BE RISK ON YOUR SIDE WHICH I HOPE YOU DO BUT HOW LONG DOES IT TAKE TO ANNEX IT? YOU WANT TO JUST FAST TRACK AN ANECKATION. IS THAT 45 DAYS? >> 45 TO 90. WE COULD TRY TO FAST TRACK IT. THERE'S THE PROBLEM WITH THE COUNTY ROAD, THOUGH. IF THAT'S INCLUDED, WE GOTTA ANNEX THE COUNTY ROAD AND THAT USUALLY TAKES 60. >> HERE'S WHY I'M SAYING. THE SEWER YOU GOT ON HERE, WE WON'T GET INTO THE SALES TAX ISSUE. WE'RE WORKING ON THAT BUT THE MIXED BEVERAGE, SO MATTHEW GO BACK ONE MORE SLIDE. OKAY. NOW HERE'S A PROBLEM. I THINK THIS DEVELOPMENT WOULD DILL DOWN HERE. ONE BECAUSE OF HOW CLOSE IT IS TO SAMSUNG WITH EVERYTHING GOING ON. BUT YOU GUYS MAY NOT KNOW ABOUT THIS BUT IF YOU TRY TO DO ANY KIND OF RESTAURANT DOWN THERE THAT HAS ANY TYPE OF ALCOHOL SALES, YOU'RE NOT GOING TO BE ABLE TO DO IT DOWN THERE BECAUSE YOU'RE NOT IN THE CITY LIMITS AND YOU'RE IN THE COUNTY. AND WHERE WE'RE AT IS GETTING [01:05:01] READY TO KICK OFF AN ELECTION IN MAY FOR ANYBODY WHO IS ANNEXED IN. I THINK IT'S LIKE LAST WEEK OF OCTOBER FIRST WEEK OF NOVEMBER. ANYBODY WHO IS ANNEXED INTO THE CITY AT THAT POINT ASSUMING OUR THING PASSES THEY WOULD ALL BE ABLE TO SELL MIXED BEVERAGES IN THE RESTAURANT. WHAT WE HAD HAPPEN WAS IN THE MUD ON THE SOUTH SIDE OF TOWN THERE WAS A BUFFALO WILD WINGS THAT WANTED TO COME AND APPLY FOR THEIR TIBC PERMIT TO SELL, YOU KNOW, LIKE, AN OLD FASHIONED OR MARGARITA AND GOT DENIED BECAUSE THE ONLY PEOPLE RIGHT NOW WHO CAN SELL A MARGARITA IN THE CITY LIMITS OF HUTTO IS THOSE WHO ARE IN THE CITY AS OF 2006. SO WE HAVE OBVIOUSLY EXPANDED A LOT. WHAT YOU'RE IN IS A LACK OF A BETTER TERM A MOIST AREA. YOU'RE WET YOU CAN SELL BEER AND WINE BUT YOU CAN'T SELL MARGARITAS AND ANYTHING HARD LIQUOR THAT GOES INTO A DRINK. WHERE I'M GOING WITH THIS IS IF YOU AND WE HAD ANOTHER DEVELOPER WHO ANECKED IN LAND. WHEN YOU COME INTO TOWN ALL THOSE INDUSTRIAL BUILDINGS ON THE LEFT, THEY ANNEXED ALL THAT LAND IN AND WE SAID WE CANNOT GUARANTEE YOU WATER OR WASTEWATER BUT THEY HAD TO HURRY UP AND GET IN THROUGH ANOTHER CONTRACTUAL THING THEY HAD SO WE FAST TRACKED. TOOK A LOT OF LIBERTIES. THEY GOT IN. IF YOU GUYS ANNEX IN BY THE FIRST OF DECEMBER OR NOVEMBER ASSUMING YOU WILL GET A RESTAURANT WHICH I DON'T KNOW WHY YOU WOULDN'T BECAUSE YOU WILL HAVE 10,000 PEOPLE A HALF MILE AWAY, YOU WILL BE IN ON OUR ANNEXATION AND YOUR ATTORNEYS AND STUFF CAN VERIFY WHAT WE'RE DOING. AND IT IS IF YOU STICK AROUND WE ARE APPROVING THE $150,000 IT WILL TAKE TO DO THE ELECTION. BUT IF YOU ANNEX IN VERY QUICKLY AND WE WORK WITH YOU ON THIS AFTERWARDS. IF YOU DON'T AND IS YOU ANNEX IN IN THE FIRST WEEK OF NOVEMBER YOU COULD HAVE THE BEST RESTAURANT IN THE WORLD LIKE WE HAVE A LONG HORNS COMING BUT THEY CAN'T SELL AN OLD FASHIONED. SO IT WOULD BE ON YOUR DIME AND ANTICIPATING TWICE THE COST IT WILL COST US NOW BECAUSE IT'S TIED TO THE GOVERNOR'S RACE. THIS IS, LIKE, 1880S WHEN TEXAS FIRST LEFT THE COUNTRY AND BECAME A UNITED STATES STATE. SO WE ARE DEALING WITH THIS RIGHT NOW. I'M THROWING A LOT AT YOU. WE CAN GIVE YOU INFORMATION BUT IT'S ONE OF THOSE THINGS WHERE I THINK WITH AS MUCH RETAIL AS YOU HAVE ON HERE AND AS MUCH AS I THINK YOU CAN HAVE WITH ALL THE RESTAURANT OPPORTUNITY AND HOTELS AND ALL THAT, FOR YOU TO DO ALL THAT AND NOT BE ABLE TO HAVE ANY OF THAT AND HAVE TO GO BACK AND DO IT ON YOUR OWN BECAUSE WE OBVIOUSLY WOULDN'T BE INTERESTED IN DOING IT. WE JUST DID IT. WE HAD ONE OTHER DEVELOPMENT JUST LIKE THIS AND THE DAWSON GUYS CAN REACH OUT TO THEM AND THAT IS THE WHAT DO YOU CALL IT THE HUTTO CROSSING BRIDGE? >> THE GATEWAY PROJECT. >> THE GATEWAY PROJECT ON THE SOUTH SIDE OF TOWN. THEY ARE IN THE EXACT SAME PREDICAMENT AND WE'RE TALKING ABOUT HEY, YOU MAY NEED TO GO AHEAD AND ANNEX IN VERY QUICKLY BECAUSE WE ARE GETTING READY TO OPEN THIS UP FOR A LOT OF OPPORTUNITY AND I HATE FOR YOU GUYS TO WANT TO DO THIS BUT I SAY ALL THAT. YOU CAN CHEW ON THAT. THE OTHER THING I WOULD SAY IS I SAW SOMETHING ABOUT A MUD. I PERSONALLY HATE MUDS. BUT THAT'S, LIKE, A HOUSTON THING. AND I THINK IF YOU REALLY DIG IN, A PIT IS VERY, VERY SIMILAR TO A MUD. IT'S JUST THE CENTRAL TEXAS WAY OF DOING A MUD. AND WE ADMINISTRATE IT INSTEAD OF YOU GUYS OR WHOEVER YOU HAVE ADMINISTRATE. WE KNOW THE PID SYSTEM VERY, VERY WELL. AND WE GET PEOPLE WE HAVE, LIKE, 7 OR SOMETHING, 7 OR 8 OF THEM. I THINK WE EVEN HAVE SERVICE ASSESSMENT PLANS WE ARE APPROVING TONIGHT FOR THEM. SO IT IS VERY EASY TO DO A PID. YOU CAN DO THAT AND GET A LOT OF YOUR IMPROVEMENTS PAID FOR JUST LIKE A MUD AND ALL OF THAT CAN HAPPEN WITH A PID BUT IF YOU DO A MUD I WILL PROBABLY FIGHT IT LIKE ALL THE OTHER ONES AND LENARD BEING THE EXCEPTION BECAUSE THEY WERE ALL THE WAY DOWN THE LINE AND WE CAME IN, LIKE, WE HAVE TO FIGURE THIS OUT. BUT IF YOU'RE WILLING TO DO A PID, ANOTHER ONE IS I DON'T THINK IT'S PAPE DAWSON. WE CALL THAT -- WHAT DO WE CALL IT? >> THE LIMMER SQUARE? >> THEY WANTED TO DO A MUD. WE TALKED THEM INTO A PID. IT'S A WHOLE LOT EASIER. IT'S US VERSUS YOU. IF IT'S A PID EVERY TIME THE STAFF DOESN'T EMAIL YOU BACK RIGHT WAY THE THING IS WE MADE PROMISES WE ARE GOING TO DO [01:10:03] EVERYTHING WE CAN TO HELP THESE GUYS BE SUCCESSFUL, AND SO WE KIND OF WRITE TO MAKE SURE WE DO THINGS RIGHT. I THROW THAT OUT THERE WHERE I WOULD LIKE TO SEE THIS HAPPEN. LIKE TO FIND YOU GUYS A WAY TO GET TO WHERE YOU CAN HAVE REALLY NICE RESTAURANTS TO SERVE ALL THOSE PEOPLE. AND THEN I WOULD LOVE TO SEE YOU GUYS DO A PID AND GET THROUGH THAT PAPER WORK REALLY QUICKLY AND THAT WAY YOU GUYS CAN BE UP AND RUNNING BECAUSE SAMSUNG IS GOING TO BE BLOWING AND GOING THIS TIME NEXT YEAR. BUT. >> DEFINITELY A FEW THING. THANK FOR ALL THE SUGGESTIONS. YES. WE WILL THINK ABOUT IT WHEN WE GET BACK. >> I DON'T WANT YOU TO BE BLIND SIDED. >> AND IT IS AN EXISTING IDEA. KIND OF LIKE A MUD BUT ALREADY AN EXISTING ONE BECAUSE IT WAS PART OF THE SAME WCID AS THE TRACK THAT HAS BEEN SPLIT. >> WE CAN FIX THAT THOUGH, RIGHT? >> IF THEY SEARCH IT. >> IT'S JUST PAPERWORK. >> SO IF YOU WANT TO FAST TRACK THE ANNEXATION THEY SHOULD SUBMIT A VOLUNTARY PETITION FOR ANNEXATION AT THE SEPTEMBER 3RD MEETING. ATTACH THEIR CONCEPT PLAN, HOW THEY WANT TO BE ZONED, AND WE CAN WORK OUT A DEVELOPMENT AGREEMENT BUT I DON'T KNOW IF WE WILL HAVE THAT READY FOR SEPTEMBER. >> CAN THEY TAKE SOME LIBERTIES? >> THEY CAN JUST DO A VOLUNTARY PETITION. THE LAW STILL ALLOWS THAT. >> AGAIN, I CAN GET YOU REFERENCES WHERE I WOULD ARGUE WE ARE PROBABLY TOUGHER ON OUR STAFF THAN ALMOST ANY OTHER CITY OUT THERE WE HAVE JUST HAD A GUY WE VOTED STAFF RECOMMENDATION LAST MEETING BECAUSE WE TRIED TO GIVE THEM FLEXIBILITY BECAUSE WE ARE REALLY TRYING TO BE I DON'T WANT TO SAY PRO DEVELOPER TO REDUCE STANDARDS. WE ARE TRYING TO GIVE YOU AMS BECAUSE WE ARE TRYING TO BEAT THINGS COMING UP. THERE ARE ISSUES WITH LAW THAT IS WE DON'T WANT TO FIGHT WITH YOU ON A 2038 DEAL BUT RATHER WORK WITH YOU. IF YOU GUYS THINK ABOUT IT THE NEW DEVELOPERS THAT HEY, THEY WILL WORK WITH YOU, I WOULD STRONGLY RECOMMEND VOLUNTARY ANNEXING AND IT WILL BE RISK ON YOUR SIDE BUT I THINK WE HAVE A PRETTY GOOD TRACK RECORD OF BEATING UP ON THE CITY MANAGE AND NOT THE DEVELOPER. >> AND WE HAVE ENTERED INTO DEVELOPMENT AGREEMENTS WITH THE PROPERTIES THAT ANNEXED IN BEFORE THE DEVELOPMENT AGREEMENTS. SO YOU HAVE PRECEDENT SETTING FOR THAT. >> SO WE CAN DO THAT AND GET YOU GUYS IN AND WHEN WE START DOING THE PETITION, YOU GUYS ARE WRAPPED IN, CHECK THAT OFF AND DON'T HAVE TO WORRY ABOUT IT. ESPECIALLY THIS INTERSECTION ON THE RIGHT, THAT'S WHERE YOU CAN SEE HOTELS, THE RETAIL WITH THE RESTAURANTS OF THINGS TO WHERE I EVER TIME THERE IS A NEW RESTAURANT LOOK FOR SPACE. EVERYBODY IS DOING IT ALL SELLING MIXED DRINKS. AND AGAIN NOW THEY'RE RUNNING INTO ISSUES, LONGHORNS BEING ONE OF THEM. I CAN'T TELL YOU THE OTHER ONES YET. THEY'RE NOT PUBLIC. ANYWAY. AND I AM HAPPY. YOU CAN REACH OUT TO ANYBODY ON COUNCIL BETWEEN NOW AND THE NEXT COUPLE OF WEEKS AND REALLY DISCUSS LIKE I SAID THE DAWSON GUYS WILL KNOW THE LGA AND THE OTHER PEOPLE DOING BUSINESS WITH IS THIS GUY FULL OF BS OR IS HE BEING HONEST WITH US. >> DEFINITELY WILL BE HELPFUL THAT WE CAN FAST TRACK. WE CAN ALSO DO A DEVELOPMENT AGREEMENT ALONG WITH ANNEXATION. THAT'S POSSIBLE GIVEN THE TIMELINE. CAN WORK WITH ALL OF THE TIMELINES. >> DID I MISS ANYTHING TO BRING UP? >> NO, YOU'RE GOOD. THE. >> I DON'T THINK THERE'S ACTION THAT YOU REALLY NEED TO TAKE. THE BALL IS IN THEIR COURT. >> IS IT CONSENSUS AMONG ALL COUNCIL THAT OUTSIDE OF THE CITY SERVICE WILL BE PROVIDED THROUGH RESALE AND THE ONLY WAY TO GET WASTE WATER IS ANNEXATION? >> I WOULD SAY SO. >> THANKS, GUYS. LOOKING FORWARD TO IT. HOPE TO SEE NEW A COUPLE WEEKS. THANKS, GUYS. NEXT ITEM 7.1 POSSIBLE ACTION [7.1. Consideration and possible action regarding possible appointments, re-appointments and/or removals to City Boards, Commissions, Task Forces, Economic Development Corporations, Local Government Corporations and Tax Increment Reinvestment Zone Boards, and Area Government appointments.] REGARDING POSSIBLE APPOINTMENTS, REAPPOINTMENTS, REMOVALS TO CITY COMMISSIONS, TASK FORCES, LOCAL GOVERNMENT CORPORATIONS AND TAX REINVESTMENT BOARDS AND AREA GOVERNMENT APPOINTMENTS. AND TO SPEAK ON THIS ITEM WE HAVE ROY HUDSON. >> GOOD EVENING, COUNCIL. RICK HUDSON PRESIDENT OF HUTTO. REASON I AM PUTTING THIS NOT IN GENERAL PUBLIC COMMENT BUT IN [01:15:01] FRONT IS BECAUSE I DO HAVE A QUESTION AND I AM HOPING TO GET IT ANSWERED. SO BEFORE WE GET INTO THAT FOR THE NEW COUNCIL MEMBERS KIND OF WANT TO GIVE AUTO QUICK AND DIRTY HISTORY OF WHAT WENT DOWN. IN NOVEMBER OF 2025, THE COUNCIL HAD PROTOCOLS TO LIMIT CITIZEN VOLUNTEERS TO TWO POSITIONS T THAT. THAT DID NOT IMPACT 48 OF THE 49 CITIZEN VOLUNTEERS. THE SO IN DECEMBER OF 2025 I COMPLIED AND TENDERED MY RESIGNATION TO TURS1 AND 3 WITH DISCUSSION TO THE NOMINATING COMMITTEE THAT IF THE POSITION IS NOT FILLED, I WILL BE HAPPY TO COME IN AND FILL. I HAVE DONE THAT TWICE SINCE THEN. LAST MONTH I WAS REAPPOINTED TO TURS1 AND TURS3. MENT NOW, I WAS NOT REAPPOINTED OR CONTINUED ON THE BUILDING AND STANDARDS COMMISSION. SO CURRENTLY I AM SERVING ON THREE BOARDS. MENT YOUR PROTOCOL IS TWO. THE I DIDN'T SIGN UP FOR THIS. THE YOU GUYS NOMINATED IT. THE SO MY QUESTION IS ARE WE GOING TO CHANGE THE PROTOCOL? OR DO I NEED TO TENDER A RESIGNATION? AND IF SO, AM I GOING TO BE CONTINUED ON THE BUILDING STANDARDS SO I NEED TO TENDER TWO RESIGNATIONS. THAT'S ALL I'M LOOKING FOR. WHAT DO YOU GUYS WANT ME TO DO. >> THERE IS A THIRD OPTION. WE COULD JUST REMOVE YOU FROM A BOARD OR TWO. >> YEAH. AL THAT'S ALWAYS AN OPTION. >> GLAD YOU BROUGHT THAT TO US. DIDN'T REALIZE WE DID THAT SO WE WILL HAVE TO FIX THAT. WHAT BOARDS ARE YOU ON RIGHT NOW? >> PLANNING AND ZONING, TURS1 AND 3. >> BUT YOU WERE ON BUILDING AND STANDARDS. >> I WAS UNTIL THE END OF JUNE. I DON'T KNOW IF YOU PLAN TO APPOINT SOMEONE TO THAT OR NOT BUT AS OF LAST WEEK IT WAS STILL VACANT. >> BUILDING STANDARDS WE HAVE POSITION 3,H AND 6 OPEN. YEAH. YOU GOT SOMEBODY. YOU NEED SOMEBODY. SO NEXT MEETING. >> MR. HUDSON I MEAN I DON'T KNOW ENOUGH YET YOU BUT YOU WERE AROUND FOR A LONG TIME. IF YOU HAD THE CHOICE TO VOLUNTEER, WHERE DO YOU THINK YOU WOULD BE MOST EFFECTIVE THAT YOU WOULD WANT TO HANG ONTO BECAUSE OF THE VALUE YOU BRING TO THOSE COMMITTEE ORS BOARDS. >> I WOULD WANT TO REMAIN ON P AND Z. THAT ONE MEETS REGULARLY AND DOES A LOT OF WORK FOR THE CITY. TURS1 SEEMS KIND OF DEFUNCT. THAT'S THE CO-OP. NOT REALLY DOING MUCH WITH IT. TURS3 I HAVE SHOWED UP FOR TWO MEETINGS THIS YEAR IN THE LAST SIX MONTHS I THINK. I DON'T REMEMBER THE EXACT AT A TIME DATE OF THE MEETINGS BUT IT IS STILL DOING WORK. I WOULD SAY AS I AM ONE OF THE ORIGINAL APPOINTMENTS WHEN THE BUILDING STANDARDS WAS FORMED AND THERE HASN'T BEEN A LOT OF PASS DOWN INFORMATION FROM WHAT HAS GONE ON BEFORE IN BUILDING AND STANDARDS. I WOULD SAY MY NUMBER ONE PRIORITY TO REMAIN P AND Z. NUMBER 2, BUILDING AND STANDARDS EVEN THOUGH THAT DOESN'T MEET FREQUENTLY AT ALL. NUMBER 3 AND NUMBER 4, TURS1. I THINK WE HAVE HAD MORE MEETINGS OF BUILDINGS AND STANDARDS THAN TURS1. >> THAT COULD CHANGE VERY QUICKLY SINCE WE ARE LOOKING AT EXPANDING. LET ME ASK YOU THIS. FROM SOME OF THE FEEDBACK I GET IS THERE IS CONCERNS BY SOME EVEN ON PLANNING AND ZONING I HAVE HEARD THE CONCERN ABOUT THE AMOUNT OF COUNCIL MEMBERS THAT SERVE ON THE EDC. AND THAT CAN BE PUBLIC OR COUNCIL. TURS BOARD IS PREDOMINANTLY CITY COUNCIL MEMBERS. >> I THINK IT IS ABOUT 50/50. >> WHICH IS RIGHT UP THERE. THE SO MAJORITY RULES. TURS BOARDS ARE ABLE TO GO OUT AND BORROW TENS AND HUNDREDS OF MILLIONS OF DOLLARS AND SET BUDGETS AND ALL THIS. THE BECAUSE OF THE CONCERN I HAVE HEARD FROM MEMBERS OF THE P [01:20:03] AND Z, IF WE TAKE YOU OFF OF TURS THAT HURT US. IF WE KEEP YOU ON THE TURS, THAT ELIMINATES THE NEED TO HAVE CITY COUNCIL AND WE GO AND BUT OTHER PEOPLE AND I'M NOT SAYING YOU'RE DOING A GOOD OR BAD JOB BUT BECAUSE WE'RE CATCHING GRIEF ON THIS AND THE IDEA IS TO EVENTUALLY SPREAD OUT AND WORK ON THIS AND THREE BOARDS MAYBE A FOURTH ONE COMING, I JUST THROW THAT OUT THERE BECAUSE IF WE HAVE THE CONCERNS I DON'T WANT TO TAKE RICK OFF A BOARD BECAUSE HE HAS CONCERNS WITH COUNCIL MEMBERS ON THIS STUFF. I VOTE TO TAKE HIM OFF I HAVE TO GO OKAY WHY DON'T YOU HOP OFF A BOARD. I'M JUST DOING EXACTLY WHAT SOME OF YOUR CONCERNS HAVE BEEN. >> I THINK WE HAVE THREE MEMBERS AND THREE CITIZENS. >> WE HAVE A PAST, CURRENT. >> I HAVE THE SPREAD SHEET PULLED UP IF YOU WOULD LIKE TO KNOW. I HAVE GOT DAN, JIM, AMBERLY, RICK, AND TANYA. >> SO IT'S A 60/40 SPLIT. >> SO WE REMOVE YOU, NOW WE'RE AT TWO AND TWO AND COUNCIL IS LAZY SO WE HAVE ANOTHER. >> OR WE COULD APPOINT ANOTHER CITIZEN. >> RICK WANT MORE AKULIVIK IN TURS1. WE HAVE OTHER PROJECTS THAT ARE ABOUT TO GO. I JUST THROW IT OUT THERE BECAUSE THEY'RE NOT HERE TAKING YOU OFF, LIKE, OH, MAN. TO DILUTE CITY COUNCIL AND YOU WENT OFF. >> I RESIGNED TO COMPLY. IT'S NOT THAT I WANTED OFF. I RESIGNED BECAUSE LIKE I SAID, TWO. >> I APPRECIATE YOU BRINGING IT UP. WE'LL TAKE IT UP AND SOUNDS LIKE PLACES THREE, FOUR, SIX NEED TO. >> WE HAVE NO CANDIDATES. WE HAVE ONE TODAY. >> FOR BOARDS. >> START BEATING THE PUSHES. >> FOR BUILDING AND STANDARDS. WE HAVE A NEW APPLICANT TODAY AND THE REST ARE FROM NEXT AND LAST YEAR. >> IF YOU WANT ME TO FIND SOMEBODY, LET ME KNOW. >> I DIDN'T SAY THAT. >> AS FAR AS YOU HAD A QUESTION ABOUT WERE WE GOING TO INCUMBENT CANADA THE PROCESS OR PROTOCOL AGAIN FROM 3 TO 2. >> FROM 4. CURRENTLY. >> THE LIMIT IS 2 RIGHT NOW. >> THE LIMIT IS 2. AND PERSONALLY I AM IN FAVOR OF LIMITING TWO. YOU HAVE BEEN AROUND FOR A LONG TIME BUT YOU'RE KIND OF UNIQUE IN THAT PERSPECTIVE. I THINK LIMITING IT TO TWO ALLOWS OUR VOLUNTEERS TO GIVE MORE QUALITY TIME AND FOCUS OUTSIDE OF THEIR PROFESSIONAL LIVES AND DAILY LIVES. I AM IN FAVOR OF LIMITING TO TWO. THAT'S ALREADY A LOT ESPECIALLY TO SOME OF THE POINTS LIKE TURS1. I DON'T KNOW IF IT MAKES A DIFFERENCE TO THE REST OF MY COUNCIL MEMBERS BUT LIMITING TO TWO AND KEEPING THAT STANDARD I WOULD BE IN FAVOR OF THAT. AS FAR AS WHICH ONES YOU STAY ON, I THINK YOU BRING A TREMENDOUS VALUE TO WHATEVER YOU'RE GOING TO BE ON. I DON'T THINK WE WOULD NECESSARILY HAVE TO POPULATE IT. I HAVE BEEN TRANSPARENT WITH THAT BALANCE, BUT NOT KNOWING ENOUGH ABOUT VALUE AND STANDARDS. >> NOT A LOT OF PEOPLE DO KNOW ENOUGH ABOUT BUILDING AND STANDARDS. >> YES. I THINK IT COMES DOWN TO WHERE YOU CAN GIVE MOST VALUE TO THE TIME YOU GIVE THESE BOARDS AND COMMISSIONS. >> AND I THINK THIS IS JUST ME RIFFING. I THINK WE COULD FIND A NUANCED SOLUTION. FOR EXAMPLE, EVERYBODY KNOWS THE ZONING BOARD OF ADJUSTMENTS DOES NOT MEET REGULARLY. I HOPE EVERYONE KNOWS THAT BUILDING AND STANDARDS DO NOT MEET REGULARLY. IF THOSE ARE THE TWO YOU'RE ON, A CITIZEN VOLUNTEER IS ON THEY ARE REALLY NOT AS ACTIVELY ENGAGED AS DNIB, P AND Z, PARKS, ET CETERA, SO. >> SINCE WE ARE REALLY ONLY SUPPOSED TO BE TALKING ABOUT APPOINTMENTS AND REAPPOINTMENTS OR REMOVALS, THAT IS MORE OF A PROTOCOL CHANGE. I APPRECIATE YOUR COMMENTS AND WE WILL DEFINITELY RECTIFY THIS. ALL RIGHT? >> THANK YOU FOR YOUR WILLINGNESS TO BE ON PROFESSIONAL BOARDS AND COMMISSIONS. >> I LIVE HERE AND DON'T PUT YOUR FEET ON MY COT. >> DOES ANYBODY HAVE ANY APPOINTMENTS, REAPPOINTMENTS, OR REMOVALS? >> YES. [01:25:06] FOR THE ETHICS REMOVAL COMMISSION, I MAKE A MOTION TO REAPPOINT KYLE PARKINSON CURRENTLY SERVING AS A CHAIR AND ACTIVE PARTICIPATE THE AND HAS BEEN SINCE THE COMMISSION'S REMOVAL LAST YEAR. >> SECOND. >> JUST TO CLARIFY THAT'S YOUR PLACE ONE. >> IT'S RECEIPT ONE. >> COUNCIL MEMBER SECONDED BY COUNCIL MEMBER MORRIS PLACE 1. PLEASE CALL THE VOTE. MOTION PASSES 7-0. >> AND THEN FOR ETHICS REVIEW COMMISSION PLACE 4, I WOULD LIKE TO MOVE TO REAPPOINT MS. LORI BROWN DUNCAN. SHE IS ACTUALLY ONE OF THE ORIGINAL MEMBERS OF THAT COMMISSION, AND I MOVE THAT WE GO AHEAD AND REAPPOINT HER TO PLACE 4 ON ETHICS REVIEW. >> SECOND. >> MOTION SECONDED BY COUNCILLOR REYNOLDS HE. ANY DISCUSSION? HEARING NONE, PLEASE CALL THE VOTE. >> IS THERE A REASON THAT HIS MICROPHONE IS SO QUIET? >> I HAVE NO IDEA. I WILL ASK OUR I.T. DIRECTOR. >> ALL I CAN SAY IS IF YOU HAVE AN OPENING, CHECK IT AND BE READY TO DISCUSS AT THE NEXT MEETING THAT YOU'RE EITHER WORKING ON IT OR AT LEAST ACKNOWLEDGE THAT YOU KNOW YOU HAVE OPENINGS ON YOUR SPACES. THAT'S A GREAT THING ABOUT THIS IS INDIVIDUALLY WE HAVE OUR OWN RESPONSIBILITY SO GET PEOPLE O OUT. >> BUILDING STANDARDS WE HAVE POSITIONS 3, 4, AND 6 AND DEIB WE HAVE POSITION 7 AND 1. AND I DID CONFIRM THOSE ARE REAPPOINTMENTS. ON THE LIBRARY ADVISORY BOARD WE HAVE POSITION 7 AND 4 AND ON THE ZBA WE HAVE POSITIONS 6, 2, AND 4 AND ALL THREE ALL THE NAT. >> WHAT DID YOU HAVE FOR LIBRARY? >> 7 AND 4. AND THOSE ARE VACANT I BELIEVE. >> CAN WE GET AN UPDATED LIST RIGHT AFTER IT'S DONE? >> IS THERE A CADENCE COUNCIL WOULD PREFER TO GET THE SPREAD BERESHEET? >> I JUST MAKE THE WEBSITE AND THE PUBLIC KNOWS, WE KNOW. >> YEAH. THAT'S GOOD. >> OKAY, SURE. >> STILL GOING TO MAINTAIN THE SPREAD SHEET THOUGH. >> YEAH, WE HAVE TO BECAUSE WE TRACK A LOT IN THERE, SO. >> YEAH IF YOU CAN JUST KEEP THAT. >> WHO SENT THAT OUT LAST TIME? >> DAWSON. >> ALL RIGHT. ITEM 7, 2. >> I HAD ANOTHER THING. NEVERMIND, GO AHEAD. [7.2. Consideration and possible action regarding recommendations or updates from City Council sub-committees (i.e. HISD, Fire Safety, CIP).] >> 7, 2 CONSIDERATION OF POSSIBLE ACTION REGARDING RECOMMENDATIONS OR UPDATES TO CITY COUNCIL SUBCOMMITTEES. WE DID NOT MEET A HISD FIRE SAFETY. WE HAD A MEETING SATURDAY. THEY WERE UNABLE TO ATTEND. THEY WERE WORKING ON GOING OVER THE AGREEMENT WE SENT THEM. CIP. DID YOU GUYS MEET YET? >> ON THE FIRE SAFETY, HAVE THEY TENDERED A POSSIBLE RESCHEDULING OF THAT? >> NOT YET. >> OKAY. AND THEN ALSO KIND OF ADJACENT TO FIRE SAFETY, WE HAD COUNCIL MEMBER ZEPEDA AND REYNOLDS, THEY WERE GOING TO DO SOME KIND OF OFFLINE TALKS WITH THE ESD. WAS THERE ANYTHING, ANY EFFORT OR COMMUNICATION THERE? >> REALLY. >> NOT A SUBCOMMITTEE THING. >> OKAY. >> ALL RIGHT. [8. CONSENT AGENDA ITEMS] [01:30:03] WILL MOVE ON TO THE CONSENT AGENDA. WE HAVE ITEMS 8, 1 THROUGH 8, 10. IS THERE ANYTHING ANYBODY WISHES TO PULL? I HAVE 8, 4 AND 8, 9. >> I HAVE 8, 4. IS IT 8, 4 AND 8, 9. >> ALL RIGHT. IF THERE'S NO OTHERS, I'LL ENTRAIN A MOTION TO APPROVE THE BAN OF THE CONSENT. >> SO MOVED. >> MAYOR PORTERFIELD SECOND. SECONDED BY COUNCILLOR MORRIS APPROVING ITEMS 81, 2, 3, 5, 7, AND 10 AS PRESENTED. ANY DISCUSSION? HEARING NONE, PLEASE CALL THE VOTE. [8.4. Consideration and possible action on Ordinance No. O-2026-033 adopting the Second Amendment to the Stromberg Planned Unit Development (PUD) Zoning ordinance adopted by ordinance no. 0-2025-047, by allowing for residential, commercial and industrial uses by adding the First Amended development plan with the additional plan labeled as exhibit "B" with an expiration date of January 1, 2030, for the uses allowed by Exhibit "B". (Legal)] >> MOTION PASSES 7-0. FOR ITEM 8, 4 THERE'S STILL SOME LEGALESE. >> YES, I RECEIVED A REVISED VERSION WHICH I PROVIDED TO STAFF AND THEY HAVEN'T HAD A CHANCE TO RECONCILE THAT. >> MOTION TO POSTPONE 8, 4 UNTIL THE 9, 3 MEETING. >> SECOND. >> SECONDED BY COUNCIL MEMBER REYNOLDS. ANY DISCUSSION? HEARING NONE, PLEASE CALL THE VOTE. >> COUNCIL MEMBER THORNTON. [8.9. Consideration and possible action on acceptance of the July 2026 financial report (Alberta Barrett)] BRINGS US UP TO 8, 9. CONSIDERATION OF POSSIBLE ACTION ON THE ACCEPTANCE OF THE JULY 29, 2026 FINANCIAL REPORT. I DON'T THINK TOUGH REALLY COME UP BUT IT'S JUST MORE THINGS MAYBE SO BECAUSE I WAS GONNA I GUESS I DO HAVE SOME QUESTIONS. SORRY. YOU'RE, LIKE, WHAT IS THIS DUDE DOING? >> I WILL YIELD MY QUESTION TO JIM. >> SO MY PACT THEY LOADED UP FOR ME IS DIFFERENT. I FEEL LIKE IT IS. I HAD PAGE, I DON'T KNOW WHAT THE HECK. >> 502. HOTEL. ECONOMIC DEVELOPMENT FUND. PARK IMPROVEMENT FUND. BENEFIT FEE FUND. MENT THERE WE GO. FOR WHATEVER REASON I LIKE 521 IS NOW 523. SOMEBODY INSERTED TWO PAGES SOMEWHERE. ON THE TRAFFIC IMPROVEMENT FUND WHEN WE ARE DOING ALL OF OUR BUDGETS AND HAVE ALL OF OUR MONEY GOING AROUND AND TALKING ABOUT BONDS AND STUFF, RIGHT NOW OUR BUDGET WOULD BE 4.6 MILLION AND CHANGE. ARE WE USING MOST OF THAT IN OUR NEXT YEAR'S BUDGET DO YOU KNOW? VERY LITTLE. CAN YOU HANG ON A SECOND? >> WHAT I'M ASKING THE CITY MANAGER IS BUDGET 4.6 MILLION PROJECTED TO END THE FISCAL YEAR AT 9.3 MILLION AND I WONDER HOW MUCH IS SITTING THERE AND HOW MUCH OF THAT CAN WE USE FOR NEXT YEAR'S 10 MILLION DEFICIT ROAD PROJECTS WE ARE LOOKING AT DOING? >> SO WHILE SHE'S COMING UP, LET ME DIRECT YOU TO THE BOTTOM WHERE YOU ARE TALKING. SO IF YOU LOOK AT THE 25 TO 26 BUDGET BUDGETING BEGINNING FUND BALANCE IS 8.9 MILLION. WE ARE EXPECTING REVENUE OF 8.9 MILLION IN THE BUDGET. AND THEN WE HAVE EXPENSES THAT WERE BUDGETED THIS YEAR WHICH LEAVES US WITH 4.6. NOW SLIDE OVER TO THE RIGHT. THAT IS THE PROJECTED NUMBERS. SO YOU HAVE BUDGETED BEGINNING FUND BALANCE, REVENUES MINUS EXPENSES UP TO THIS POINT OF THE YEAR WITH A PROJECTED ENDING FUND BALANCE OF 9.2 MILLION. >> YUP. >> OKAY. I WANT TO MAKE SURE EVERYBODY IS ORIENTED. SO WHAT I WAS JUST WONDERING IS HOW MUCH -- I ASSUME WE BUDGETED [01:35:02] 6.1 MILLION. I ASSUME THE REST OF THAT MONEY 4.6 IS GOING TO BE USED NEXT YEAR. I JUST WANT US TO NOTICE THAT AND GO IS THERE A WAY TO USE MORE OF THAT FOR NEXT YEAR. I JUST HATE ANYTIME I SEE A DOLLAR IN THE TIFF FUND THAT'S A DOLLAR WE DON'T HAVE TO BORROW. >> SO NOW I'LL LET HER TALK ABOUT WHAT SHE HAD TO GET OUT OF THE TIFF FUND. SO WHAT WE HAVE BUDGETED IN 27 OUT OF THE TRANSPORTATION IMPROVEMENT FUND IS 2,359,013. THAT WOULD LEAVE YOU ABOUT 6 AND A HALF. TO ANSWER YOUR QUESTION, YES, YOU CAN USE SOME FOR STREET PROJECTS AND THEY'RE ON THE TRANSPORTATION IMPROVEMENT. >> THE MOBILITY MASTER PLAN. >> THANK YOU. >> YES, MA'AM. >> IF YOU GUYS CAN LOOK AT THAT BECAUSE SOMETHING TELLS ME THE PROJECTS WE'RE PICKING NEXT YEAR SOMEWHERE THEY'RE ON THAT. >> I CAN RESEARCH, YES. THE PROJECTS BASICALLY MOVE THE MONEY AROUND, USE THAT 6 MILLION AND THAT WOULD LEAVE US 4 MILLION IN THE HOLE WE GOTTA FIND BECAUSE RIGHT NOW WE NEED 10 MILLION IN BORROWING TO HIT WHAT WE SAID WE WOULD DO. DID THAT'S 6 MILLION WE'RE NOT USING THAT LEAVES US 4. >> YES, I UNDERSTAND. IF THEY'RE ON THERE, YES. WE WILL RESEARCH THAT. >> I'M NOT GOING TO HOLD YOU TO IT. MIGHT BE 3 AND A HALF MILLION WE MADE UP. BUT OKAY. ATHEN THE NEXT ONE ARPA FUND. WE STILL HAVE MONEY IN THE ARPA FUND. TWO QUESTIONS. ONE, HAS THE COUNTY GIVEN EVERYTHING OR ARE DO WE HAVE TO VOTE FOR MORE? >> WE RECEIVED EVERYTHING WE WERE OWED ON THAT AND COLLECTED IT. >> SO WHAT DOES IT TAKE TO GET US TO ZERO THIS NEXT BUDGET YEAR AND NOT TRACK IS IT BECAUSE MY GUESS IS WE HAVE THAT MONEY FOR THE WASTEWATER LINE. WE ZEROED OUT AND DON'T HAVE TO WORRY ABOUT IT. >> SO WHAT WE ARE USING IT FOR AT THIS MOMENT IS THE SOUTHEAST LOOP WASTEWATER INTERCEPTER. SO WE WILL SPEND THE REST OF THAT MONEY ON THAT PROJECT WHICH IS RIGHT NOW 407,000 IS WHAT WE WILL PROJECT TO HAVE LEFT. >> BUT THAT LINE COSTS MORE THAN 6 MILLION RIGHT? >> YES. WE'RE JUST USING A SMALL PIECE OF THE FUNDING. >> I DIDN'TISH IF MY DEGREE IN FUNDING BUT CAN WE JUST ZERO THIS OUT BECAUSE WE OBVIOUSLY SPENT MORE THAN WE EVER HAD IN THIS FUND. BECAUSE BASICALLY WE HAVE SPENT RATE PAYER MONEY. I WANT TO ZERO THIS OUT AND NOT WORRY ABOUT IT BECAUSE EVERY TIME I SEE THE ARPA MONEY. >> WE ARE SPENDING IT AS WE SPEND ON THAT PROJECT. SO IT IS ONE OF THE FIRST ITEMS THAT WE WILL SPEND. >> RIGHT. BUT WE SPENT MORE THAN 10 MILLION ON THAT LINE. >> WE HAVE DONE IT FOR OTHER PROJECTS NOT JUST THAT ONE PROJECT. THAT'S WHAT WE HAVE LEFT, THAT PROJECT THAT WE ARE USING ARPA FUNDS FOR. >> INSTEAD OF HAVING 400,000 LEFT, SPEND IT DOWN TO ZERO AND LEAVE THE OTHER 400,000. >> YES. >> WHATEVER IT TAKES TO GET RID OF THAT. >> I WILL PRIORITIZE THAT. AND ON PAGE 529, THIS IS I GUESS LIKE A NEW LINE. I TALKED TO JAMES A LITTLE BIT ABOUT THISSIVE BE THE MEETING. OUR WASTEWATER IMPACT FEES WE HAVE, LIKE, TWO MONTHS TO GO AT 20%. SO I DON'T KNOW IF IT IS BECAUSE DEVELOPMENT IS DOWN BUT DEVELOPERS KEEP THINKING OUR IMPACT FEES ARE HIGHER THAN THEY ARE. SO I WILL PROBABLY TALK TO JAMES ABOUT COMMUNICATION ON THE FORM BECAUSE I AM ALMOST POSITIVE AND TELL ME IF I'M WRONG. WHEN WE PROJECT WHAT WE'RE GOING TO CHARGE WASTE WATER RATES AND ALL THAT BECAUSE WE ARE EXPECTING THAT MONEY TO COME IN IN ORDER FOR OUR NUMBERS TO KEEP MATHING OUT. >> TO SOME EXTENT, YES. BUT WE HAVE DONE REPROJECTIONS BASED ON NUMBERS. SO WHEN WE BRING FORWARD THE AMENDMENT NEXT MONTH THIS IS ONE OF THE FUNDS THAT WILL GET AMENDED DOWN. IN OUR LONG-RANGE PROJECTION, TO SOME DEGREE THEY HAVE TO HOLD CLOSER TO WHAT WE HAVE PROJECTED IN THAT LONG-RANGE PLAN FOR THOSE NUMBERS TO HOLD TRUE. >> THAT'S MY CONCERN IS I THINK WE NEED TO I GOER IF OUT HOW MUCH OF THAT 5 MILLION WE ARE IN THE HOLE IT WAS RESIDENTIAL AND BASICALLY I THINK WE NEED TO KNOW HOW DID WE GET SO FAR OFF BECAUSE IF WE HAVE TO THEN RAISE WATER RATE BECAUSE OUR IMPACT FEES ARE TRENDING EXTREMELY LOWER THAN WHAT WE PROJECTED, I [01:40:03] JUST WANT TO MAKE SURE IT'S NOT BECAUSE WE RAISED THEM TOO HIGH WHICH I DON'T THINK WE DID. WHEN WE DID THE MATH IT WAS PEOPLE PUTTING THE NUMBERS IN WRONG BECAUSE THEY CALLED UP AND FREAKING OUT AND I DON'T THINK IT'S THAT HIGH. WHEN WE WENT THROUGH THIS I'M GETTING, LIKE, HALF THE NUMBERS. SO IN MY MIND I'M, LIKE, HOW MANY PEOPLE BEFORE I CAN'T AFFORD TO BE THERE. I BRING THAT UP SO WHENEVER I AM HITTING ON THAT I THINK IT'S 546 IN THE PACK I'M LOOKING AT RIGHT NOW. THIS IS THE OVERALL DEAL. GOTTA SEE WHAT IT'S LIKE TO BE IN MY FAMILY. EVERY NICKEL EVERYBODY SPENDS. >> AND THE THERMOSTAT. >> WHICH BY THE WAY HE TRIED TO GET ME AT 68. IT'S 71 NOW. WE ARE NOT SPENDING MONEY WE DON'T NEED. THIS IS OUR TOTAL FEE. THIS IS SOMETHING I THINK COUNCIL SHOULD ALWAYS BE LOOKING AT BECAUSE AGAIN YOU SEE ON THIS THIS IS EVERY MONTH OF OUR DEVELOPMENT FEES. IF WE'RE OVER OUR PLANNING IN ZONING, WE'RE HALF OF WHAT WE ARE SUPPOSED TO BE IN ENGINEERING. MAKES YOU WONDER WHY IS THAT. WE ARE ALMOST 40% AND OVER ON OUR IMPACT FEES AND YOU GET DOWN TO THE WATER IMPACT FEES WHERE 40% OF THAT WERE OR 60% OF THAT WERE 20% OF OUR IMPACT FEES SO YOU START SEEING PRETTY BIG HOLES. AND THIS IS ALL INCOME WE ARE ALLOCATING TO GO SPEND ON STUFF. I'M NOT TRYING TO GET THIS DEVELOPED FASTER. BUT IF WE ARE GOING TO SLOW DOWN. WHATEVER IS CAUSING THE SLOWDOWN WHETHER IT BE ECONOMIC, INTERNALLY WE ARE DOING SOMETHING THAT COUNCIL IS MAKING POOR DECISIONS. WE ARE 50% OF WHERE WE WERE SUPPOSED TO BE TWO MONTHS AGO. SO IT'S 8 MILLION THAT ALBERTA WILL HAVE TO COME UP WITH. SOME OF IT WILL BE A PASS THROUGH I THINK WHERE SO MANY SITE REVIEW FEE. PEOPLE PAY US A GRAND AND WE SPEND A GRAND. SOME OF THEM ARE AFFECTING OUR WATER RATE, WASTE WATER RATES. SOME I AM MORE COGNIZANT OF. IF YOU GO TO THE VERY LAST PAGE IT'S BUDGET TRANSFERS YEAR TO DATE SO SOME OF THIS IS ACTUALLY SO AS I GO THROUGH EVERY RENT THAT'S MONEY SAVED. AND THE PLAQUE IS MONEY USED. AND WHAT IT APPEARS IS TAKE, LIKE, THE FIRST LINE. WE DECREASE BY 9,000 OUR USE OF DIGIT THE ADS WHICH IS GREAT. AND WE SPENT IT ON A WEBSITE CHAT BOT WHICH ABBEY IS SAYING THAT WAS GREAT TOO. BUT WE TAKE AWAY AND FIND SOMETHING. LATER ON IN HERE I WILL TRY TO PICK ON EVERYBODY IN EVERY DEPARTMENT BUT WE HAVE SAVINGS FROM BASEBALL EQUIPMENT AND SOD REPLACEMENT AND SPENT IT ON AN INVOICE THAT WAS LATE FROM A YEAR AGO. AND WE HAVE SAVINGS FROM NOT RENEWING OUR EPCOR RESERVATIONS AND WE BOUGHT A TRAIL WERE THE MONEY. NONE OF THIS I'M SAYING WE DON'T NEED BUT I WILL GET TO A POINT HERE WHERE WE HAVE MONEY WHERE WE BOUGHT OTHER STUFF WITH IT. WHEN I ADDED UP ALL THE RED FOR THE YEAR IT WAS $723,920. AND SO THIS WILL COME OFF AS CARLOSED BUT THAT'S THE FAT IN GOVERNMENT. WHEN YOU CAN SIT THERE AND SAY I REALLY WANT THIS OTHER ITEM SO I CAN FOREGO THIS OVER HERE AND IN EXCHANGE I GET THIS OVER HERE, THAT IS THE MONEY WE HAVE TO I GOER IF OUT. AND I'M NOT SAYING WE SHOULD NEVER LINE IT UP BECAUSE EVEN THE COUNCIL DOES THAT RIGHT AFTER WE PASS A BUDGET WE SAY HEY, WE'RE GOING TO SPEND MONEY ON SOMETHING WE DIDN'T BUDGET. I THINK IT'S EVERYBODY IN THIS ROOM THAT IF YOU CAN SAVE MONEY WHENEVER YOU WANT, LIKE, A TRAILER THEN THAT'S MONEY YOU SHOULD HAVE NEVER ASKED FOR IN A BUDGET. AND IF YOU CAN SAVE MONEY WE HAVE TO BUDGET IT BETTER BECAUSE THAT $40,000 IN AMMUNITION WE DIDN'T SPEND IS PRETTY SIGNIFICANT. THAT'S 30,000 BECAUSE WE SAID OUR POLICE NEED AMMUNITION AND [01:45:05] RANGE TIME. I'M NOT ASKING FOR PEOPLE TO CUT STUFF OUT JUST TO CUT IT OUT BUT WHEN YOU LOOK AT IT WE CUT OUT OFFICE SUPPLIES, YOU. >>> BE OF MATERIALS TO A TUNE OF THREE QUARTERS OF A MILLION DOLLARS. THAT IS MONEY THAT I DON'T KNOW. I THINK SOME OF THIS STUFF, I THINK WHAT'S GOTTA HAPPEN IS WE JUST THROW OUT NUMBERS NOT TO EXCEED AND WHAT I HEAR FROM TIME TO TIME IS THERE'S MONEY IN THE BUDGET OR WE CAN FIND MONEY IN THE BUDGET. THERE'S ALWAYS MONEY IN THE BUDGET BECAUSE WHEN WE NEED A THOUSAND WE ASK FOR TWO THOUSAND AND WE GET THAT SOMETIMES AND WHENEVER WE NEED SOMETHING ELSE WE MOVE THE MONEY AROUND. NOT ALWAYS THAT WAY BUT LOOKING THROUGH IT WHEN THAT ADDED UP I THINK IT WAS GOING TO BE A HUNDRED GRAND. I GOT TO 700 I WAS, LIKE, HOLY COW. WHAT WAS OUR BUDGET LIKE 36 MILLION? >> IT WAS VERY, VERY SMALL, LIKE, ONE OR TWO%. >> WHAT'S OUR BUDGET 26 MILLION? >> WHAT IS THE UTILITY FUND? >> CLOSER TO 75, 80 MILLION. I'M NOT SAYING IT SOUNDS LIKE A LOT BUT 1% VARIANCE IS NOT AS BIG OF A THING. >> IT HE REMIND ME OF NO, GO AHEAD. >> JUST THE FACT THAT WE COULD GET THE BUDGET 99% ACCURATE, WE SHOULD BE CELEBRATING THAT. >> I KNOW. I'M JUST SAYING THERE WAS AN ARTICLE I READ ABOUT STEVE JOBS ABOUT IPOD SAYING MAKE IT SMALLER AND WE CAN'T. CANNOT GO ANY SMALLER. HE TOOK IT, DROPPED IT IN A FISH TANK, AND WHEN THE AIR BUBBLES CAME UP, THERE'S YOUR SPACE. WHEN WE ENTER BUDGET SEASON, WE SHOULD ALL REMEMBER EVERYTHING THAT YOU ASK FOR BECAUSE I KNOW THERE'S PEOPLE IN THIS BUILDING, LIKE, I KNOW THE MAYOR WILL COME CRACKING SO I REALLY NEED 5 SO I'LL ASK FOR 8 AND GOT SOME ROOM. WHEN YOU DO THAT YOU'RE TAKING AWAY FROM SOMEBODY ELSE BECAUSE WE'RE NOT GOING TO RAISE TAXES SO YOU HAVE A FINITE NUMBER. >> THAT DOESN'T WORK FROW. IT DOES A LITTLE BIT BECAUSE IF YOU CAN DECREASE THAT DIDN'TAL SPENDING BY 2,000 THAT'S 2,000 WE SHOULD NEVER HAVE ASKED FOR. THAT'S A DECISION COUNCIL DIRECTED IS TO USE THE CHAT BOT BECAUSE COWBOY COUNCIL WAS, LIKE, WHY ARE WE EXTENDING SO MUCH ON DIGITAL ADS. >> WE SHOULD HAVE CUT IT IN THE BEGINNING BECAUSE WHEN WE FIRST CUT IT EVERY DOLLAR WE TAKE WE DON'T NEED. THAT I AGREE AND COMPLETELY SUPPORT. JUST BUDGET IS MEANT TO BE A GUIDANCE DOCUMENT. I TRY TO KEEP IT AS ACCURATE AS POSSIBLE FOR WHAT WE PROPOE TO Y'ALL. >> AND YOU DO A GREAT JOB. >> WE GO TO A GREAT EFFORT TO ARTICULATE WHERE THE DOLLARS ARE COMING FROM OR GO TO SO YOU KNOW EXACTLY WHAT IT'S TO BE SPENT ON. AND BECAUSE OF THAT LEVEL OF DETAIL YOU GO WITH I NEED TO MOVE $500 TO THIS LINE ITEM AND THAT'S OKAY IN MY BOOK. WHAT IS NOT IS WHAT YOU'RE TALKING ABOUT I GOT THESE PADDED NUMBERS SO I CAN DO WHAT I'M GOING TO DO. THE AND EVERY ONE OF THESE HAVE TO GO THROUGH MULTIPLE STAFF BEFORE IT EVER GETS TO ME. AND I HAVE ACTUALLY SAID NO TO BUDGET TRANSFERS IN THE PAST SO IT'S NOT UNCOMMON. >> I WOULDN'T BE MIKE WITHOUT BEING MIKE. >> I UNDERSTAND. I WOULDN'T BE ME WITHOUT BEING ME. >> TO THAT, THE UTILITY FUND IS ABOUT 41 MILLION. PROXIMATE FUND IS 35 MILLION. THAT IS LESS THAN 1%. >> THAT'S GOOD. >> HALF A PERCENT IS 350,000 SO WE HAVE GOALS, RIGHT? HE DOESN'T WANT TO SPEND MY MONEY. >> I LIKE THAT EVERY DOLLAR YOU SAY TAKE BUT I APPRECIATE YOU SAYING THAT. >> SO ANYWAY. >> JUST LIKE THAT THEY STARTED MAKING IPODS WATER PROOF. FOR THAT REASON. THAT'S ALL I HAD. OVERALL I'M SAYING GREAT. WE ARE DOING GREAT. IT'S JUST AS WE GET BIGGER THIS IS KIND OF HOW THE CITY OF AUSTIN CAN RUN A $2 MILLION BUDGET AND THERE'S NOTHING TO CUT AND THEY FOUND OUT THE CITY MANAGER WAS GETTING $400,000 WORTH OF EXTRAS. IT'S THINGS LIKE THAT THAT AS YOU GET BIGGER THAT 1% GETS BIG [01:50:03] AND IN REALITY WE JUST ALWAYS GOTTA BE COGNIZANT OF WHAT WE'RE DOING AND KNOW THAT THE PUBLIC WILL ALWAYS SCRUTINIZE IT MORE THAN WE ARE. >> THE I CAN MAKE A MOTION TO ACCEPT THE JULY 2026 FINANCIAL REPORT. >> COUNCILLOR MORRIS SECONDED BY COUNCILLOR ZEPEDA. ANY DISCUSSION? HEARING NONE, PLEASE CALL THE VOTE. >> IT'S FINE EITHER WAY. >> MAYOR SNYDER. >> AYE. >> NEXT TIME JUST SAY BECAUSE HE DOESN'T REALLY LIKE THE TITLES. >> I'M LITERALLY READING IT I'M SORRY. >> MAYOR, COUNCIL MEMBER EVAN. >> THANK YOU. ALL RIGHT. [9.1. Consideration and possible action on Ordinance No. O-2026-042 authorizing the notice and publication of the Joint Public Hearing of the Planning and Zoning Commission and City Council to be held on September 17, 2026 at 7:00 p.m. to consider recommendations and possible action upon an ordinance repealing and replacing Article 16.02 of the Hutto City Code, the Unified Development Code of the City of Hutto, Texas. (Howard Koontz)] THAT PASSES 7-0. NEXT WE HAVE ITEM 9, 1 POSSIBLE ACTION ON ORDINANCE 0-2026-042 AUTHORIZING THE NOTICE AND PUBLICATION OF THE JOINT PUBLIC HEARING OF THE PLANNING AND ZONING COMMISSION AND CITY COUNCIL TO BE HELD SEPTEMBER 26 AT 7 P.M. TO CONSIDER RECOMMENDATIONS AND POSSIBLE ACTION ON AN ORDINANCE REPEALING AND REPLACING ARTICLE 6.02 OF THE HUTTO CITY KODY THE CITY OF HUTTO, TEXAS. I WILL MAKE A MOTION THAT WE AUTHORIZE THE IN THE AND PUBLICATION OF THIS JOINT PUBLIC HEARING AND THAT WE ALSO TAKE THE SIGNED CODE OUT OF THE CODE AND MOVE IT TO A SEPARATE CITY CODE AND INCORPORATE THE LEGAL CHANGES INTO IT AND POST IT ON THE WEBSITE FOR THE PUBLIC. >> COULD YOU REPEAT ALL THAT? >> WE APPROVE THE ORDINANCE AUTHORIZING PUBLICATION OF THE HEARING AND TAKE THE SIGNED CODE OUT OF THE UDC AND PUT IT IN A SEPARATE CITY CODE, INCORPORATE THE LEGAL COMMENTS AND POST A COPY ON THE WEBSITE. >> SECOND. >> THE REASON I HAVE DONE THIS IS IF WE TAKE THE SIGNED CODE OUT OF IF WE EVER MAKE A CHANGE WE DON'T HAVE TO GO THROUGH A MEETING AND PUBLIC PROCESS. WE CAN JUST MAKE A CHANGE TO THE SIGNED CODE AND LEGAL DOCUMENTS IN THE DOCUMENT. PART OF THIS HAS TO BE POSTED ON THE WEBSITE. SO DID I CATCH EVERYTHING I TALKED TO YOU ABOUT? >> YES. AND I'LL WORK WITH HOWARD ON THE UDC AND PUT THAT IN THE REGULAR CITY CODE SO THAT WE CAN HAVE IT AT THE SAME MEETING. >> YEAH. I WAS TELLING IF WE CAN'T FIGURE OUT HOW TO MAKE THIS SIMPLER AND DO DECIDE TO STRIKE IT. IF WE SIMPLIFY THE PROCESS AND NOT MAKE IT SO COMPLICATED WE DON'T HAVE TO GO BACK, PUBLISH AND GO THROUGH THE JOINT MEETINGS AND ALL THAT. WE CAN JUST TAKE THE CHANGES AND I'M SURE WE'RE GOING TO OVERCORRECT. HOWARD WILL SHOW US WHERE WE MADE MISTAKES. AND WE CAN ADD THE CODE BACK IN WHEN HE WITH SEE A MISTAKE. SO THAT WAY WE CAN MOVE A LITTLE BIT MORE STREAMLINED IF WE DO IT THAT WAY IS KIND OF WHAT MY THINKING WAS. >> ONE OF THE COMMENTS FOR DISCUSSION WAS LAST WEEK WHEN WE WERE GOING THROUGH THIS EXERCISE ONE OF THE THINGS DISCUSSED AND BROUGHT UP WAS A TEN-MONTH REVIEW. DO YOU REMEMBER THAT CONVERSATION WE HAD? >> YES, I REMEMBER IT. AFTER THIS WAS PASSED THEY WOULD GO BACK AND SPEND WHATEVER TIME IT WAS UP TO TEN MONTHS DIGGING IN AND GOING THROUGH AND AMENDING IT POSSIBLY CHAPTER BY CHAPTER. >> AND ONCE THEY DID THAT THEY WOULD BE PRESENTING THAT MONTH BY MONTH OR AT THE END OF TEN MONTH. HOW DOES THAT AFFECT WHAT WE'RE DOING RIGHT NOW LOOKING INTO THE FUTURE? >> I DON'T THINK IT REALLY AFFECTS WHAT WE'RE DOING. I THINK THEY WILL BRING THEM BACK AS THEY HAVE SOMETHING FOR US. THAT WAS THE IMPRESSION I GOT FROM THE DISCUSSION. I DON'T THINK IT IMPACTS THIS DECISION REALLY TONIGHT. >> YEAH. IF IT'S COMING BACK TO US. [01:55:01] >> I DON'T THINK IT AFFECT US. WHAT IT WILL DO IS IF THEY GO THROUGH THREE CHAPTERS LIKE CHAPTER THREE IS THE BULK OF THE DOCUMENT SO IF THEY GO THROUGH CHAPTER ONE, TWO, AND THREE AND SAY THESE ARE CHANGES THAT NEED TO BE MADE AND AGREE WITH IT, WE HAVE TO MEET AGAIN AS A JOINT BODY. >> NO, YOU DON'T HAVE TO MEET AS A JOINT BODY. YOU CAN AMEND A SECTION AND TAKE IT TO PNZ AND JUST DO AMENDMENTS LIKE THAT BECAUSE YOU ARE WHOLE SCALE READVISING THE UDC, THIS IS WHY YOU USE THE JOINT PROCESS SO YOU DON'T HAVE TO IN THE PEOPLE. >> SO THEY COULD BRING US A CHAPTER. WE AGREE, VOTE, PASS. IT GET UPDATED AND WE'RE DONE. >> EARTH THAT. IT'S A TEXT AMENDMENT. >> STREAMLINES IT. >> ALL RIGHT. PLEASE CALL THE VOTE. ALL RIGHT. KATE THINKS SHE WILL BE UP HERE [10.1. Discussion and Possible Action Regarding the Project Sequencing and Timelines for FM 1660 S @ US 79 (T-04) and CR 199 (T-19). (Kate Moriarty)] BEFORE 9 I THINK. NEXT ITEM 10, 1. DISCUSSION OF POSSIBLE ACTION REGARDING THE PROJECTS SEQUENCING AND TIMELINES AT UZ79TR4 AND TNC9219. GOOD EVENING. KATE MORIARTY EXECUTIVE DIRECTOR OF ADMINISTRATIVE SERVICES. TWO POINTS OF DISCUSSION THIS EVENING. YOU NOTE IN THE AIR THE APED TIMELINES FOR CONSTRUCTION OF 1660 SOUTH. 199 IS ANTICIPATED TO BE I BELIEVE IT WAS 22 MONTHS CONSTRUCTION ISTHE OTHER THING . THE OTHER THING WE DON'T HAVE THE FUNDING FOR IT AND WE ARE WORKING FOR THE CONSTRUCTION COSTS IN THE CIP PLANS. THE OTHER NOTE IN 2 ORIGINAL SCOPE OF FRIESEN NICKELS, UTILITY COORDINATION SPECIFICALLY WITH TECH DOT AND UPRR WAS NOT INCLUDED. SO IN A MORE RECENT SUPPLEMENT ALL APPROVE WITH FRIESEN NICKELS STARTED TO RE-ENGAGE THEM. SUMMER OF LAST YEAR, THERE WAS ADDITIONAL DIRECTION TO GO AHEAD AND INCLUDE THE FRONT STREET IMPROVEMENTS IN 199. I THINK THERE WAS PRIOR CONVERSATION TO INCLUDE IT IN THE 1660 PROJECT. BUT THERE WAS THE INTENT TO NOT DELAY IT EVEN FURTHER. AND SO TECH DOT AND UPR COORDINATION HAS NOT TAKEN PLACE YET WITH 199. FRIESEN NICKELS IS TRYING TO GENERATE WHAT AN ANTICIPATED TIMELINE MIGHT LOOK LIKE FOR THAT COORDINATION. THAT IS AN OUTSTANDING QUESTION MARK. HAPPY TO ENTERTAIN ANY DISCUSSION BEFORE WE GET INTO THE SCHEDULING OPTIONS WITH 1660. >> REALLY WHAT YOU'RE SAYING IS AS MUCH AS WE WOULD LIKE TO MAYBE SWITCH, IT'S JUST NOT -- >> CORRECT. >> I APPRECIATE YOUR WRITING THE EXERCISE. I THINK AT LEAST THAT WAY, WE CAN TELL THE PUBLIC AND THEY'RE GOING TO ASK THE QUESTION, COULD WE? WE CAN SAY ACTUALLY, NO, IT'S COMPLICATED AS THIS IS, WE ACTUALLY RAN THE EXERCISE AND WE CAN'T. >> YES. >> WANT COMPLETE WASTE OF YOUR TIME? >> NO. I LEARNED MORE ABOUT THE PROJECT. >> ALL RIGHT. >> OKAY. SWITCHING OVER TO 1660 SOUTH. SO IN THE LAST CIP UPDATE PROVIDED TO YOU Y'ALL, STAFF HAD JUST GOTTEN NEWS ABOUT SOME COORDINATION THAT HAPPENED BETWEEN TECH DOT AND UPPR THAT WAS GOING TO POTENTIALLY IMPACT WHAT WE UNDERSTOOD TO BE THE ANTICIPATING LETTING TIME FRAME OF THE PROJECT THAT WAS FEBRUARY ORIGINALLY. THE LARGEST SURPRISE IN ALL OF THIS AND KIND OF WHAT PROMPTED IT IS TECH DOT IS UNDER THE IMPRESSION WE COULD RUN THE CONSTRUCTION AND MAINTENANCE AGREEMENTS WITH UPPR THAN GET THE ESTIMATE WHAT THE COST WAS GOING TO BE. TECH DOT HAS EVERY UNDERSTANDING THAT WAS GOING SWIMMINGLY AND UPR CAME BACK AND SAYING WE'RE JUST DOING THE ESTIMATE AND NOT GOING TO DRAFT THE AGREEMENT GETTING THE ESTIMATE OF THE COSTS. ALL THAT TO SAY THERE ARE THREE OPTIONS THAT STAFF IS ASKING FOR DIRECTION FOR. ONE OF THE RISKS THAT IS, I DON'T THINK, ARTICULATED UP THERE IS WHILE THE ANTICIPATED TIMELINE FOR THE CONSTRUCTION [02:00:03] AND MAINTENANCE AGREEMENT IS IN THAT APRIL TIME FRAME, THAT WOULD ALLOW US TO POTENTIALLY SHIFT TO THAT MAY, JUNE THAT YOU SEE IN OPTION 2, I DON'T KNOW WHAT THE POSSIBILITY IS OF IT GETTING SHIFTED AGAIN. AND WE HAVE BEEN COORDINATING WITH THE CONGRESSIONAL OFFICE TO SEE WHAT SUPPORT THE CASE WORK TEAM MIGHT BE ABLE TO PROVIDE WORKING WITH UPRR, SO STAFF'S RECOMMENDATION IS TO JUST COMPLETELY SHIFT THE LETTING AND POTENTIAL TO MAY, JUNE WITH POTENTIALLY GETTING PUSHED AGAIN WITH UPRR AND NOT START AND EFFECTIVELY START A PROJECT. >> KATE'S RECOMMENDATION IS OPTION 2. >> YES. >> I'LL MAKE THAT MOTION. >> SECOND. >> KATE, I'M ONLY MAKING THE MOTION BECAUSE YOU COME ACROSS AS ONE OF THE MORE DETAILED PEOPLE THAT'S COME UP TO WHERE WHEN WE THROW THE CRAZY QUESTIONS AT YOU, YOU TYPICALLY HAVE THE ANSWERS OR GONE DOWN THE RABBIT HOLE ONCE AND WITH REASONING AND YOU GOING THROUGH THIS, I'M GOING TO -- IT'S BETTER THAN SAYING IT WAS YOUR IDEA IF IT GOES SOUTH. >> THAT WAS SECONDED BY KING. >> YES. >> BUT I TRUST THAT WHAT YOU'RE SAYING IS YOU HAD CONVERSATIONS, YOU'RE TALKING WITH THEM, I FORGET HIS NAME. NOT HOWARD. >> I THINK IT'S VERY CLOSE TO THAT. WITH JUDGE REPRESENTATIVE CARTER'S OFFICE, THE CHIEF OF STAFF. >> YES. I KNOW WE'RE WORKING THIS EVERY WAY WE CAN. >> THAT WAS OPTION 2, OKAY. MOTION FOR OPTION 2. ANY OTHER DISCUSSION? ALL RIGHT. HEARING NONE, PLEASE CALL THE VOTE. >> MOTION PASSES 7-0. DOTTIE, WHICH EXECUTIVE SESSION ITEMS DON'T WE NEED TO DISCUSS? WE'RE STILL GATHERING INFORMATION TO GIVE SURETY TO RESOLVE THAT TO HAVE IT POSTPONED TO 9.3. THE RELEASE OF THE AUDIO AND TRANSCRIPTS, I DON'T THINK WE HAVE GOTTEN ANYTHING TO GO IN THERE AND DISCUSS RELEASING. WE DON'T -- I MEAN, NOBODY GAVE ME ANYTHING. >> ANYBODY GOT ANY LEGAL QUESTIONS FOR THAT? HOLD ON. DAVID IS -- >> YOU HAVE A LEGAL QUESTION? >> WE DO. WE HAVE IT PREPARED. I DO HAVE -- >> THERE ARE LEGAL QUESTIONS. >> YES. >> OKAY. I'M FINE WITH THAT. >> WE CAN DO THAT. THE THIRD AMENDMENT TO THE INCENTIVE AGREEMENT WE PROVIDED A RESOLUTION WITH THE AGREEMENT IF THERE'S NO LEGAL QUESTIONS ON THAT, WE CAN JUST MOVE THAT TO 12.2. >> IF I QUESTIONS ON PARADIGM? ALL RIGHT. START READING HERE. GO BACK. [11. EXECUTIVE SESSION] 9:00. RECEIVE LEGAL ADVICE. CONSULTATION WITH ATTORNEY TO DELIBERATE AND SEEK LEGAL ADVICE REGARDING THE PROPOSED GATEWAY DEVELOPMENT AGREEMENT INCLUDING RELATED PROVISIONS OR AGREEMENTS FOR THE PUBLIC IMPROVEMENT DISTRICT AND REINVESTMENT ZONE AND THE OPIS DEVELOPMENT AGREEMENT AND CONSTRUCTION OF OFFSIDE PUBLIC SECURITY AND PUBLIC UTILITIES AND RELATED THERE TO. UNDERSEALINGS TAX SHARING AND LOCAL AGREEMENTS AND PROPOSED LOCAL AGREEMENT OF FIRE SERVICES WITH THE EMERGENCY SERVICES EMERGENCY DISTRICT NUMBER 3 AND RELEASE OF AUDIO AND TRANSCRIPT SUB-COMMITTEE MEETINGS. TAX ABATEMENT AGREEMENT AND CREATION OF TAX ABATEMENT ZONE. AND RECEIVE LEGAL ADVICE PURSUANT TO GOVERNMENT CODE. CONSULTATION WITH WITH ATTORNEY AND DELIBERATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTIONS 551.072 REAL PROPERTY, 551.087 ECONOMIC DEVELOPMENT NEGOTIATIONS. RELATED TO PENDING ECONOMIC DEVELOPMENT PROJECTS BY THE HUTTO DEVELOPMENT CORPORATION AND THE CITY OF HUTTO AND PROJECTS... AND FINALLY 11.3 PURSUANT TO TEX GOVERNMENT CODE SECTION 551.071 AND ATTORNEY AND [02:05:03] REAL ESTATE AND DELIBERATE AND SEEK LEGAL ADVICE OF THE ACQUISN AND DRAINAGE. TIME IS [12. ACTION RELATIVE TO EXECUTIVE SESSION] >> 11:12 BACK FROM EXETER CHIEFS ECONOMICTIVESESSION AND TO ITEMA ABOVE. >> MAYOR AND COUNCIL FOR 11.1 A THE PROPOSED GATEWAY DEVELOPMENT AGREEMENT AND THE PROVISIONS RELATED TO THE PUBLIC IMPROVEMENT DISTRICT AND TAX REMIT ZONE AND REQUEST COUNCIL APPROVE RESOLUTION R-2026171 CALLING THE PUBLIC HEARING TO CREATE THE PUBLIC IMPROVEMENT DISTRICT. AS YOUR FIRST ACTION. AND THEN THE SECOND ACTION A MOTION TO DIRECT STAFF TO BEGIN PREPARING THE PRELIMINARY PROJECT AND FINANCING PLAN FOR THE GATEWAY TAX INCREMENT REINVESTMENT ZONE. >> SO MOVED. >> RESOLUTION NUMBER. >> R-2026-171. >> SECOND. >> THANK YOU. >> IT'S OKAY THAT I DID THAT. >> YOU CAN SAY SO MOVED WHAT THE CITY ATTORNEY SAID. >> ANY DISCUSSION ON THE MOTION? HEARING NONE. >> PLEASE CALL THE VOTE. >> MOTION PASSES. 7.0. MOVING TO ACTION. >> I HAVE ONE. I DIDN'T KNOW IF DOTTIE HAD SOMETHING ELSE. >> RELEASE AUDIO AND TRANSCRIPTS IF PIR IS MADE TO RELEASE PORTIONS AS ALLOWED BY LAW REDACTING PORTIONS THAT REFER TO PERSONAL HEALTH INFORMATION RELATED TO THE ESD 3 SUB-COMMITTEE MEETINGS. >> SECOND. >> MOTION -- >> TO MAKE THE RECORD CLEAR, CAN WE SAY PUBLIC INFORMATION. >> I'M SORRY PUBLIC INFORMATION ACT REQUEST THAT'S WHAT PIR STANDS BY. >> MOTION AND SECONDED. ANY DISCUSSION ON THAT? HEARING NONE, PLEASE CALL THE VOTE. 7.0. THEN I MAKE A MOTION THAT WE DIRECT STAFF TO SEND THE LETTER TO THE COUNTY CALLING ASKING FOR THEM TO SET AN ELECTION FOR THE VOTERS FOR 80-20 SALES TAX SPLIT WITH THE ESD. >> SECOND. >> MOTION AND SECONDED. ANY DISCUSSION ON THE MOTION? >> AND THAT IS IN RELATION TO 11.1 D, THE SALES TAX SHARING IN THE LOCAL AGREEMENTS AND PROPOSED AGREEMENTS? >> YES. >> MY ONLY COMMENT IS I THINK IT WOULD BE PREMATURE. >> ALL RIGHT. PLEASE CALL THE VOTE. >> MOTION PASSES 6-1. ANY OTHER ITEMS FROM EXECUTIVE'S YOU GUYS HAD WRITTEN DOWN? >> JUST THE 12.2 THE PARADIGM. >> 12.2 CONSIDERATION POSSIBILITY ACTION RESOLUTION R-2026-100 TO THE THIRD AMENDMENT OF INSENSITIVE AGREEMENT OF PARADIGM MANUFACTURING INCORPORATED. MAKE A MOTION TO APPROVE THE RESOLUTION AS PRESENTED. >> SECOND. >> MOTION AND SECONDED. ANY DISCUSSION ON THE MOTION? HEARING NONE, PLEASE CALL THE VOTE. >> MOTION PASSES 7-0. ALL RIGHT. [13. CITY COUNCIL COMMENTS] THAT BRINGS TO 13.1 GENERAL COMMENTS FROM CITY COUNCIL? [02:10:03] ALL RIGHT. ITEM 13.2 FUTURE AGENDA ITEMS? ALL RIGHT. WE WILL ADJOURN AT 11:17 P.M. * This transcript was compiled from uncorrected Closed Captioning.