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[00:00:09]

WELL GOOD EVENING AND WELCOME TO THE AUGUST 1ST 2022 WORK SESSION FOR THE GARLAND CITY COUNCIL.

JUST A COUPLE OF QUICK NOTES. COUNSELOR BEER WILL NOT BE ABLE TO JOIN US THIS EVENING. AND WE HAVE WE HAVE OUR WORK SESSION. WE HAVE AN EXECUTIVE SESSION AND THEN WE HAVE A GARLAND FOUNDATION FOR DEVELOPMENT. SO WE'VE GOT A STRING OF MEETINGS, SO LET'S GO AHEAD AND GET STARTED. FIRST ITEM. ADAM ONE PUBLIC COMMENTS ON WORK SESSION ITEMS. I DON'T BELIEVE WE HAVE ANYONE SIGNED UP THIS EVENING. WILL YOU NOT OKAY? SECOND ITEM TWO IS CONSIDERED THE CONSENT

[2. Consider the Consent Agenda ]

AGENDA. I HAVEN'T SEEN ANY REQUESTS OR QUESTIONS ABOUT ANYTHING FOR THAT. MOVE ON TO

[3. Written Briefings: ]

ITEM THREE WRITTEN BRIEFINGS. ITEM THREE A COVID 19 BRIEFING. ADAM. ITEM THREE B INVESTMENT PORTFOLIO SUMMARY. ADAM THREE C FIRE STATION NUMBER SIX CONSTRUCTION BID AWARD. AND ITEM THREE D CONSIDER ASSISTANCE FOR 2022 LABOR DAY PARADE. NO, OKAY. ALRIGHT WE WILL MOVE ON TO ITEM

[4a. Garland Housing Finance Corporation 2021 Annual Report ]

FOR VERBAL BRIEFINGS BEFORE A GARLAND HOUSING FINANCE CORPORATION 2021 ANNUAL REPORT.

I THINK WE'VE GOT A FULL SLATE HERE OF FOLKS. THE HONORABLE DAVID GIBBONS LEADING THE CHARGE TONIGHT. IT'S A WHOLE LOT EASIER TO SIT ON THAT SIDE OF YOU. ESPECIALLY WHEN I HAVE TO DEAL WITH TECHNOLOGY ISSUES, AS YOU WILL KNOW. I BELIEVE I WILL SAY NO COMMENT. I DIDN'T NOTICE YOU'RE GONNA GET THE DRAFT OF THE BUDGET AND THAT SO I DID HAVE SOME QUESTIONS I'D LIKE TO PRESENT HERE SO. BRIAN'S BLOOD PRESSURE JUST WENT UP. TO THE BEGINNING OF A STROKE OVER THERE. YEAH. AM I. WE ARE SEEING IT. YES, GOOD. SO FAR SO GOOD. INTERESTING. I CAN'T SEE IT SO YEAH, IT'S ON OUR MONITORS. AND THEN BEHIND YOU THERE SO WELL, THANK YOU, MR MAYOR, COUNCIL MEMBERS, MR BRADFORD. IT'S OUR PLEASURE TO BE HERE TONIGHT FOR THOSE WHO DO NOT KNOW ME. MY NAME IS DAVID GIBBONS. I'M THE EXECUTIVE DIRECTOR OF THE GARLAND HOUSING FINANCE CORPORATION WITH ME TONIGHT IS THEY'LL ADAMS IS THE PRESIDENT OF BOARD. ALSO WE HAVE WITH THIS DELORES ELDER JONES, WHO IS A BOARD MEMBER AND VICE PRESIDENT OF THEIR BOARD AT OFFICIAL PHOTOGRAPHER OF EVERYTHING, WHETHER YOU WANT YOUR PICTURE MADE OR NOT, SHE WILL MAKE IT FOR YOU, UH, AND WITH HER IS ALSO PETER ROMAN YAK WHO IS ONE OF OUR BOARD MEMBERS AS WELL. IT IS CERTAINLY OUR PLEASURE TO COME BEFORE YOU DO NOT GIVE YOU OUR ANNUAL REPORT. UM IT'S BEEN AN EXCITING YEAR FOR US HAS BEEN A BUSY YEAR AND, UH, WILL GO THROUGH THIS AS QUICKLY AS POSSIBLE, AND CERTAINLY ANSWER ANY QUESTIONS ANYONE MAY HAVE AGAIN. THREE OF OUR BOARD MEMBERS ARE HERE TONIGHT. IN ADDITION TO MR ADAMS, MISS ELDER JONES AND MR ROMAN YAK TONY TORRES IS SECRETARY OF THE BOARD AND BOARD MEMBER AND JOHNNY WALKER IS OUR TREASURER. UH.

MISS WALKER IS HAS A BACKGROUND AND WORKS CURRENTLY IN INVESTMENT BANKING. MR TORRES HAS RETIRED FROM THE I R S AFTER 30, PLUS YEARS WITH AN ACCOUNTING BACKGROUND. MR ROMAN YAK IS, UH, A SEASON REAL ESTATE PROFESSIONAL, A LONGTIME BROKER , MISS ELDER JONES. I'M SURE ALL OF YOU KNOW, BUT IT'S BEEN AROUND FOR MANY YEARS AND INVOLVED IN THE COMMUNITY AND ADVOCACY AND UH, URBAN PLANNING IS HER BACKGROUND. AND THEN MR ADAMS'S IS AN EXECUTIVE WITH HIGHLAND HOMES AND CONSTRUCTION AND SALES OF NEW HOME CONSTRUCTION. SO I BELIEVE THAT WE HAVE A REALLY WELL WOUND ID BOARD OF BOTH TALENT AND CAN COMMITTED AND CONCERNED VOLUNTEERS THAT ARE THERE ARE ALWAYS LOOKING FOR HOW THEY CAN IMPROVE. UH, APPLY FOR OUR NEIGHBORS IN GARLAND. UM. AS YOU KNOW, WE HAVE WORKED OVER THE YEARS WITH A NUMBER OF PARTNERS THAT WE PROVIDE TO SOME OF OUR MULTI FAMILY HOUSING. WE ARE CONTINUING SEVERAL OF THOSE PARTNERSHIPS JUST SO THAT EVERYONE KNOWS, UH OUR INVOLVEMENT WITHIN THESE PARTNERSHIPS THAT HELP REGULAR WITH OUR SUCCESS. I'D LIKE TO GO THROUGH THIS VERY QUICKLY. THIS

[00:05:01]

IS SARAH. THIS WAS ORIGINALLY KNOWN AS PRIMROSE ON BELTLINE. THIS IS EXCUSE ME IN DISTRICT EIGHT. THIS IS A SENIOR COMMUNITY, ALL 100% OF THE UNITS OR SET ASIDE FOR AFFORDABLE SENIORS, UH, WITH THE MAXIMUM INCOME OF 60% AM I WHICH RELATES TO ABOUT $41,000 A YEAR FOR A SINGLE PERSON, OR ABOUT $47,000 A YEAR FOR A COUPLE, SO THIS IS PROVIDING A VERY NEEDED ASSET IN OUR COMMUNITY RIGHT NOW, WITH WITH RENTS, UH, CONSTANTLY INCREASING OUR PARTNER HERE IS DOMINION INC WE HAVE BEEN A PARTNER AND FOLLOWED SOMEHOW IN THIS COMMUNITY SINCE SINCE 2005.

HOMETOWN WHICH IS ON CASTLE DRIVE AND DISTRICT TO NOW USED TO BE IN DISTRICT ONE DISTRICT TO ANOTHER SENIOR COMMUNITY. 100% OF THE UNITS ARE SET ASIDE FOR AFFORDABLE SENIORS AGAIN.

THERE'S A THERE'S A WRITE DOWN 5% OF THE UNITS FOR 30% I AM I 45% OF THE UNITS FOR LESS THAN 50% AM I AND 50% OF THE UNITS FOR 60% AMMA. AGAIN THESE ARE PROVIDING MUCH NEEDED AFFORDABLE RESIDENTS FOR OUR SENIORS IN GARLAND. OUR PARTNER IN THIS PARTICULAR PROPERTY IS INTEGRATED REAL ESTATE GROUP. UE ME. THERE'S ALSO ANOTHER SENIOR COMMUNITY. THIS COMMUNITY IS NOT IN THE CITY OF GARLAND. THIS COMMUNITY IS IN PLANO. IT IS A MIXED INCOME AGAIN. SET ASIDE 100% FOR SENIORS WITH 80% AT 60% AM I OR LESS AND 20% MARKET, RIGHT? UM OUR PARTNER AND THIS PARTICULAR COMMUNITY IS RISE. RESIDENTIAL. CITY SQUARE LOFTS, WHICH IS AN ADAPTIVE RE USE OF THE OLD BANK BUILDING IN DOWNTOWN GARLAND. I THINK ALL OF YOU ARE AWARE OF THIS. WE'VE BEEN A PARTNER IN THIS COMMUNITY SINCE 2020. AH THERE'S 100 AND 26 UNITS HERE. THIS AGAIN IS A MIXED INCOME COMMUNITY. WITH 20% AT 50% AM I 40% AT 60% AND 40% AT MARKET RATE. UH OUR PARTNER HERE IS RISE RESIDENTIAL AS WELL. 1 95 WHEEL, WHICH IS IN DISTRICT ONE. UM. ON WEST CAMPBELL. CURRENTLY THERE ARE 493 UNITS THERE. THIS IS WORKFORCE HOUSING. THIS IS A COMBINATION OF 80% AM I AS WELL AS MARKET RATE UNITS. UM OUR PARTNER HERE IS INTEGRATED REAL ESTATE GROUP. WE ARE IN THE PROCESS OF WORKING WITH STAFF RIGHT NOW FOR A THIRD PHASE OF THIS PARTICULAR COMMUNITY. UM WE ARE, UH. EXCITED ABOUT THIS COMMUNITY. IT IS. IT IS A NEURO CONSTRUCTION. UH WE HAVE A GREAT RELATIONSHIP WITH THIS PARTICULAR PARTNER, AND THIS COMMUNITY IS PROVIDING SOME MUCH NEEDED WORKFORCE HOUSING FOR TEACHERS FOR STUDENTS. WHAT WE'RE FINDING INTERESTING NOW IS THAT AH! LOTS OF TEACHERS. LOTS OF FIRE. LOTS OF FIRST RESPONDERS. LOTS OF POLICE OFFICERS. ENTRY LEVEL INCOME NOW ACTUALLY EXCEEDS WHAT THEY CAN BE PAID TO BE ABLE TO LIVE IN WORKFORCE HOUSING. AND SO WHAT WE'RE SEEING IS THAT THIS IS MUCH MORE ABOUT SINGLE PARENT HILL HOUSEHOLDS, HOSPITALITY RESTAURANTS, STUDENTS, MAINTENANCE WORKERS AND THOSE TYPE OF FOLKS WHO ARE AH, OR IN THAT WHAT WE CALL THE MISSING MIDDLE IS THAT THEY MAKE TOO MUCH MONEY TO QUALIFY FOR AFFORDABLE HOUSING, BUT THEY DON'T MAKE ENOUGH MONEY TO BE ABLE TO QUALIFY FOR MARKET RATE . SO WE BELIEVE THAT THIS PARTICULAR PRODUCT IS PROVIDING A GREAT, UH, A SERVICE FOR OUR CITIZENS HERE IN GARLAND. LEGACY RIVERSIDE IS ANOTHER SENIOR COMMUNITY THAT WE'RE DOING THIS TIME. THIS COMMUNITY IS IN FORT WORTH. IT IS CURRENTLY UNDER CONSTRUCTION. IT WILL BE 264 UNITS. WHEN IT'S COMPLETE AGAIN.

IT WILL BE 100% SR 100% AFFORDABLE AT 60% AM I. THOSE WERE THE EXISTING PARTNERSHIPS WE CAME INTO 2021 WITH AND CONTINUE WITH. WE HAVE A COUPLE OF NEW PARTNERSHIPS, UH, THAT WE HAVE ENTERED INTO IN 2021. MURDOCH VILLA IS A 240 UNITS COMMUNITY RIGHT NOW. IT IS BEING REHABBED ABOUT $21 MILLION OF REHAB IS BEING DONE IN THIS COMMUNITY. IT'S AN INTERESTING SETUP IS THAT THE ORIGINAL CONSTRUCTION WAS ALL THREE AND FOUR BEDROOMS. THERE WERE NO ONE IN TWO BEDROOMS IN THIS COMMUNITY, AND THERE WAS A REAL CHALLENGE WITH TRYING TO LEASE AND KEEP THIS COMMUNITY OCCUPIED . AND SO THROUGH SOME VERY CREATIVE ENGINEERING AND ARCHITECTURAL WORK. AH THE FIRST FLOOR. THREE BEDROOMS ARE BEING CONVERTED TO TWO ONES AND ONE ONES AND THE FIRST FLOOR. FOUR BEDROOMS ARE BEING CONVERTED TO TUTU'S INTO TWOS, AND SO WE'RE ACTUALLY GOING TO BE ADDING 62 UNITS TO THE COMMUNITY, RIGHT, CHANGING THE ACTUAL PHYSICAL LAYOUT OF THE COMMUNITY. UM IT IS 100% AFFORDABLE. IT IS 60% AND ME. IT IS NOT SET ASIDE FOR

[00:10:05]

SENIORS. THIS AGAIN IS FOR FAMILY. IT IS A DALLAS, TEXAS. OUR PARTNER IN THIS PARTICULAR COMMUNITY IS HAMILTON'S DEVELOPMENT. AH WE ALSO IN DALLAS HAVE A NEW PROPERTY UNDER CONSTRUCTION ON FRANKFURT ROAD AT 1 90. AH ENCLAVE AT FRANKFURT . IT WILL BE 380 UNITS AGAIN. IT IS MIXED INCOME WORKFORCE HOUSING. UM. AS I DISCUSSED SOME OF THESE COMMUNITIES, YOU SEE THAT WE HAVE DONE SOME PROPERTIES OUTSIDE THE CITY OF GARLAND AND JUST TAKE A MOMENT TO TALK ABOUT THAT. AH AND 2017 . I BELIEVE THE BOARD EXPANDED ITS ABILITY TO DO BUSINESS OUTSIDE THE CITY OF GARLAND. IF WE STILL WORK ON LOW INCOME PROPERTY TAX CREDITS, AND IF WE STILL WORK WITH BOND PROGRAMS WERE PRETTY, WHICH STILL RESTRICTED TO THE CITY OF GARLAND. BUT THESE ARE JUST PARTNERSHIPS THAT WE ARE DOING WITH FOR PROFIT DEVELOPERS TO DELIVER AFFORDABLE HOUSING. AND FROM THOSE WE GENERATE FEES AND ONE OF THE REASONS THAT WE'VE BEEN ABLE TO PROVIDE SO MUCH ASSISTANCE THIS PAST YEAR AND THEN AS AS WE SEE IN 2022 AS WELL, IS THAT THESE PROPERTIES GENERATE FEES G HFC AH, WE ARE EARNED FEES BASED UPON CASH FLOWS. WE EARN FEES BASED UPON OUR PARTICIPATION. WE ARE IN FEES BASED UPON OWNERSHIP IN VARIOUS POSITIONS. SO WHAT WE DO WITH ALL THOSE FEES THAT WE ARE OUTSIDE THE CITY OF GARLAND, WE BRING ALL THOSE BACK AND WE SPEND THOSE IN THE CITY OF GARLAND AND WE'LL TALK ABOUT THOSE IN A FEW MINUTES. SO WE WOULD LOVE TO DO MORE PROJECTS IN GARLAND MADE QUITE FRANKLY RIGHT NOW, THE PRICE OF DIRT AND THE PRICE OF REAL ESTATE IS SUCH THAT IT'S VERY DIFFICULT, BUT I WILL TELL YOU THAT NOT ONLY WERE CURRENTLY LOOKING AT EXPANSION OF PHASE THREE AND 1 95 WHEEL, WE WILL ALSO BE CLOSING ON SOME LAND HOPEFULLY BEFORE THE END OF SEPTEMBER THAT WILL BE BRINGING AT LEAST 150 NEW, AFFORDABLE SENIOR UNITS TO DISTRICT ONE SO WE'RE EXCITED ABOUT THAT AS WELL AND LOOK FORWARD TO SHARING THAT NEWS WITH YOU NEXT YEAR. AH IN ADDITION, WE ARE CURRENTLY UH PARTNERS WITH, UM EXCUSE ME. AH! PALLADIUM USA, WHICH IS NOW CONSTRUCTING. 107 UNIT AFFORDABLE COMMUNITY KNOWN AS EMERY EAST SIDE ON RIGHT OFF OF THE DAIRY AND HIGHWAY 66. AH WE JOINED IN AS THE CO DEVELOPER AND CO GENERAL PARTNER AND THIS PARTICULAR PROJECT I WOULD TELL YOU THAT DEPUTY MOTOR DEPUTY EXCUSE ME, MAYOR PRO TEM MORRIS AND ASSISTANT CITY MANAGER. UH, JUDD, REX? UH, I STILL HAVE SURE SORE SHOULDERS FROM THEM, TWISTING MY ARMS TO HAVE US DO THIS DEAL, BUT IT WAS NOT AN EASY DEAL TO GET DONE. I WILL TELL YOU, BUT WE'RE EXCITED ABOUT BEING A PARTNER IN DELIVERING MORE AFFORDABLE HOUSING IN ANY WAY. WE CAN BE A PARTNER TO HELP DELIVER THAT IN GARLAND. AS YOU WILL KNOW. WE ALSO HAVE R M C C D P A PROGRAM OUR MORTGAGE CREDIT CERTIFICATE AND DOWN PAYMENT ASSISTANCE PROGRAM. AH LAST YEAR, G HFC FUNDED $175,000 TOWARD. THESE PROGRAM WE FUNDED JUST OVER $7.7 MILLION IN MORTGAGES. THIS IS ALL FOR FIRST TIME HOMEBUYERS IN THE CITY OF GARLAND. AH SO 35 NEW FAMILIES WERE ABLE TO PURCHASE HOMES LAST YEAR IN GARLAND WITH OUR ASSISTANCE. AH! I'M GOING TO GO TO ANOTHER SLIDER SO YOU CAN SEE WE'VE DONE A RESEARCH. WE DID SOME RESEARCH AND YOU CAN SEE THIS PROBABLY COMES AS NO SURPRISE TO ANY OF YOU TO SEE THAT. UM THE AVERAGE MORTGAGE VALUES OF WHAT WE'RE SEEING FOR AFFORDABLE HOUSING FOR FIRST TIME HOMEBUYERS HAS GONE GONE UP DRAMATICALLY, AND SO I WILL TELL YOU RIGHT NOW WE HAVE AN INCOME LEVEL OF LIMIT OF $97,000 IS THE MOST FAMILY CAN MAKE TO QUALIFY FOR ONE OF THESE ASSISTANCE PROGRAMS. AND TO BE ABLE TO BE IN THAT INCOME STREAM AND TRY TO FUND $277,000 MORTGAGE. IS NOT AN EASY THING TO DO SO, ALTHOUGH UM YOU CAN SEE FROM THE GRAPH OVER THE YEARS. WE'VE WE'VE 2020 20 WAS A GREAT YEAR WE FUNDED 48 LOANS.

UM LAST WE DID 35 SO FAR THIS YEAR WE'VE DONE ONE. AND IT IS ALL ABOUT THE BASIS THAT THERE IS JUST NO AFFORDABLE HOUSING THAT PEOPLE CAN QUALIFY, EITHER THEIR INCOME IS TOO HIGH TO BE ABLE TO QUALIFY FOR OUR PROGRAM, OR THE PRICE OF THE OF THE HOME IS AS TOO HIGH. SO THE RESPONSE TO THAT WE'VE DONE A LOT OF RESEARCH THIS YEAR. WE'RE CURRENTLY OUR DOWN PAYMENT ASSISTANCE PROGRAM IS THE $5000. NO INTEREST LOOK. THAT IS ONLY PAYABLE EITHER AT THE TIME OF SALE OR WHEN THE MORTGAGE IS PAID. SO A PERSON CAN GO FOR 30 YEARS AND NOT HAVE TO PAY BACK

[00:15:02]

THAT LONG. WE'VE INCREASED THAT NOW TO $15,000. WE BELIEVE THAT IF WE CAN PROVIDE MORE ASSISTANCE THAT ALLOWS THEM POTENTIAL BORROWERS TO EITHER BE ABLE TO BUY DOWN THE INTEREST RATE TO MAKE A LARGER DOWN PAYMENT TO ACTUALLY POSSIBLY BIT UP A CONTRACT TO BE ABLE TO GET, UH INTO A HOME AND SO WE'VE JUST THE BOARD JUST APPROVED THIS $15,000 CHANGE LAST MONTH, AND SO WE'VE PUT IT OUT NOW TO OUR MORTGAGE COMPANIES. AND SO WE'RE STILL WAITING TO SEE WHAT HOPEFULLY, POSITIVE RESULTS WE HAVE FROM THAT. UM. WE, UH. AS YOU KNOW, WE ALSO HAVE BEEN PURCHASING LAND IN GARLAND TO BUILD HOMES AND DO OTHER IMPROVEMENTS OF ONE OF THE THINGS THAT I'M MOST EXCITED ABOUT, UH, IS THE KING CONTINUED DEMISE OF CASTLE MANOR NURSING HOME. I BELIEVE THAT COUNCIL DEPUTY MAYOR PRO TIM SMITH ACTUALLY WAS EMPLOYED THERE AT ONE POINT IN TIME. AND TOLD ME LOTS OF HORROR STORIES ABOUT WHAT IT WAS LIKE THERE. SO AS YOU KNOW, WE ACQUIRED THIS PROPERTY IN EARLY 2021. WE THREW A CDBG GRANT. WE WERE ABLE TO RAISE THE PROPERTY. AH THIS IS GOING TO BE EXCITING NEWS THAT WOULD BE SHARING WITH YOU MORE NEXT YEAR. WE'RE LOOKING FORWARD TO WE TOOK THIS PROPERTY AND WE WENT TO THE STUDENTS AT THE GILBERT READ. CAREER TECHNICAL CENTER TO THE DESIGN AND ARCHITECTURAL CLASS, AND WE SAID HERE'S 2.4 ACRES WE WANT AN AFFORDABLE SENIOR COMMUNITY WILL SEE YOU NEXT YEAR AND THEY CAME BACK IN THE FIRST OF JUNE, UH, WITH SOME AMAZING WORK, AND, UH , MAYOR COUNCIL MEMBER MORRIS COUNCIL MEMBER EXCUSE ME FOR TIM MORRIS AND COUNCIL MEMBER BASS WERE THERE AND SAW THE PRESENTATION. THESE YOUNG PEOPLE DID AN UNBELIEVABLE JOB. UM SO, UM. WE'VE BEEN WORKING CONTINUED TO WORK WITH, UH, I'M GONNA WOODARD AND JASON WILL HIDE WITH HOUSING, COMMUNITY SERVICES OR MR BRADFORD COMMUNITY AND COMMUNITY AND SOMETHING HOUSING. UH, I'M TALKING ABOUT USING MORE CDBG GRANTS TO WORK ON THIS PROGRAM. ANYHOW, THE STUDENTS CAME OUT WITH TWO PROGRAMS TO TWO DESIGNS. BOTH OF THEM INDICATE THAT WE CAN PUT 24 AFFORDABLE SENIOR UNITS ON ON THIS TRACT OF LAND, SO WE'RE IN THE PROCESS OF TAKING AN EYESORE THAT HAS SAT THERE FOR 15 YEARS AND ARE GOING TO MAKE IT UH, SOMETHING THAT ALWAYS GONNA BE PROUD OF. IT'S ONLY GOING TO TAKE US THREE YEARS, MAYBE FOUR TO ACTUALLY COMPLETE THE PROJECT . WE'RE GOING TO TRY TO SELF FUND THIS THROUGH SELF THROUGH CDBG GRANTS AND, UH, G HFC FEES. UH WE ARE HOPEFUL. UH, UH, WE HAVE OUR ANNUAL RETREAT SET FOR SEPTEMBER. SO I'M HOPEFUL THAT AFTER SEPTEMBER WILL HAVE A PLAN OF ACTION. WE REALLY WANT TO BE ABLE TO GO BACK TO THESE KIDDOS AT SCHOOL AND SAY WE ACTUALLY TOOK YOUR DIE IDEAS AND DESIGNS AND YOU'VE HELPED US CREATE SOMETHING THAT OUR COMMUNITY NEEDS. SO WE'RE VERY EXCITED ABOUT THAT. UM IN ADDITION, WE'VE BEEN PURCHASING ANOTHER PROPERTY FOR SINGLE FAMILY CONSTRUCTION. AH SEVERAL OF YOU ATTENDED THE GROUNDBREAKING CEREMONY THAT WE HAD IN UH, NOVEMBER THE 11TH OF 2021. I'M EXCITED TO TELL YOU THAT AFTER WORKING WITH ENGINEERING AND ENGINEERING AND ENGINEERING THAT WE FINALLY HAVE A SIGNED CONTRACT AND HOPEFULLY, CONSTRUCTION WILL ACTUALLY BEGIN ON THIS HOME NEXT WEEK OR THE WEEK FOLLOWING. SO, UH, WE WERE HOPEFUL TO BE ABLE TO DELIVER IT ON VETERANS DAY THIS YEAR, BUT WE'RE NOT THIS THIS HOME WILL BE SET ASIDE AS AN AFFORDABLE HOME FOR A VETERAN FAMILY IN GARLAND.

SO WE'RE VERY EXCITED ABOUT THAT . IN ADDITION, YOU PROBABLY KNOW THAT WE PURCHASED THERE IS A LARGE LOT AT THE CORNER OF ALAMO AND NORTH GLENBROOK AND DISTRICT EIGHT. AH THAT FOR A NUMBER OF YEARS AND ABANDONED CHURCH SAT ON. WE PURCHASED THAT PROPERTY, UH, AND HAVE RAISED THE STRUCTURE AND HAVE SUBMITTED JUST THIS PAST WEEK TO, UH, CITY FOR REPLANTING. THIS PARTICULAR TRACKED INTO THREE LOTS FOR THREE SINGLE FAMILY, AFFORDABLE HOMES. SO UH, ANYTHING THAT MR BRADFORD, MR X, OR MR GARIN COULD DO TOO. MOVE OUR APPLICATIONS ALONG WE WOULD BE HAPPY ABOUT THAT, UH, IN ADDITION, WE PURCHASED A LOT AT LARGE LOT AT 17 31 RUSSELL IN DISTRICT TWO. THIS LOT ALSO AS BEING SUBDIVIDED INTO TWO LOTS. IT IS ALSO NOW BEEN SUBMITTED.

THE REPLAY HAS BEEN SUBMITTED FOR APPROVAL. SO WE ARE HOPEFUL TO HAVE, UH, AT LEAST FOR IF NOT

[00:20:03]

SIX NEW HOMES UNDER CONSTRUCTION BEFORE THE END OF THE YEAR OR EARLY NEXT YEAR AGAIN, ALL OF THESE WILL BE AH! SET ASIDE FOR AFFORDABLE HOMEOWNERS. IN ADDITION, UH. THE G HFC BOARD THOUGHT IT WAS VERY IMPORTANT THAT THEY GIVE BACK TO THE COMMUNITY. AND WE? WE FOUND OURSELVES WITH LOTS OF FOLKS NEEDING HELP, AND WE DIDN'T KNOW NECESSARILY HOW TO DO IT, OR WE COULDN'T DO IT INTERNALLY, BUT WE KNEW THAT THERE'S LOTS OF PARTNERS OUT THERE THAT WE COULD PARTNER WITH THAT COULD DELIVER THOSE SERVICES THAT OUR NEIGHBORS NEED. SO, UM IN 2021.

WE FUNDED MORE THAN $652,000 IN GRANTS. FOR HELP FOR OUR NEIGHBORS. ONE OF THE PROGRAMS WE PUT TOGETHER WAS A COMBINATION OF FUNDING TO CODE CARES. NEIGHBORHOOD VITALITY AND HOUSING AND COMMUNITY SERVICES, WHICH WE FUNDED $500,000 FOR THAT PROGRAM. UM THIS IS AN EXAMPLE OF A HOME THAT ARE GRANT WAS ABLE TO DO ROOF REPAIRS ON THIS PARTICULAR HOME AS YOU CAN SEE, OVERALL, UH WE WERE ABLE TO HELP 34 FAMILIES IN THE CITY OF GARLAND. YOU CAN SEE THE VARIOUS SERVICES OR IMPROVEMENTS THAT WE WERE ABLE TO FUND FOR THEIR HOMES. AGAIN ALL OF THIS WAS WE SAID TO THIS. THIS GRANT WAS OVERSEEN BY HOUSING, COMMUNITY SERVICES AND NEIGHBORHOOD VITALITY, AND WE SAID BASICALLY , THE ONLY CRITERIA WE WANT ON THIS IS THAT SOMEONE HAS TO BE IN THE LESS THAN 80% AM I SO ONE HAS TO MAKE LESS THAN $55,000 A YEAR TO NEED THIS HELP. UM AND I JUST HEARD LAST WEEK FROM MISS KING IS AT, UH, WITH THE HEAT WAVE GOING ON. OUR FUNDS HAVE BEEN BEING USED FOR AIR CONDITIONING, REPLACEMENT AND REPAIR. AND SO WE'RE EXCITED ABOUT THAT AS WELL BEING ABLE TO HELP OUR NEIGHBORS. IN ADDITION TO THAT PROGRAM, WE DID A $25,000 GRANT FUND OR FUNDED TO $25,000 GRANT TO HELP WITH THE REMODELING OF THE HOME THAT I THINK MANY OF YOU WERE THERE FOR THE GRAND OPENING, AND THIS WAS A HOME IN DISTRICT THREE THAT WAS REHABBED AND SOLD TO A VETERAN THROUGHOUT ONE OF THE AFFORDABLE PROGRAMS. IN ADDITION TO WHAT WE DID WITH GRANTS WITH THE CITY, WE ALSO DID A GRANT FOR $100,000 TO GARLAND I SD EDUCATION FOUNDATION. OUR ONLY CRITERIA HERE. AS WE SAID, IS THAT NOT ONLY DO WE AGAIN WE WANT THESE. THESE KIDDOS TO BE FAMILY MEMBERS OF FAMILIES OF 80% OR LESS AM I AND WE WANT IT TO BE SOMETHING WITH RESIDENTIAL CONSTRUCTION OR SOMETHING WITH CONSTRUCTION SO ACADEMICALLY THAT WAS FOR ARCHITECTURAL STUDIES FOR ENGINEERING STUDIES , BUT WE WERE MORE CONCERNED ABOUT VOCATIONAL TRAINING WORTH CARPENTERS AND TECHNICIANS AND WELDERS AND ALL THE THINGS THAT KIDDOS COULD GRADUATE FROM HIGH SCHOOL WITH. AND START LEARNING A TRADE. AND NOT ONLY DID OUR FUNDS GO EXCUSE ME TOWARDS SCHOLARSHIPS FOR THESE PROGRAMS . WE ALSO FUNDED PURCHASE OF TOOLS. THE PURCHASE OF, UH UM. OF CLOTHING. YOU KNOW, YOU CAN'T DO WELDING AND NOT HAVE A SHIELD . AND YOU CAN'T, UH, DO AIR CONDITIONING AND CONSTRUCTION WITH WITH FLIP FLOPS AND TENNIS SHOES. YOU GOT TO HAVE REAL CONSTRUCTION CLOTHING. AND SO OUR GRANT WENT FOR NOT ONLY THE EDUCATIONAL SCHOLARSHIP FOR THE TUITION, BUT ALSO FOR THOSE PROGRAMS AS WELL. AH WE WERE ABLE TO HELP 14 KIDDOS WITH WITH WITH SCHOLARSHIP GRANTS, AND THEN AH, ANOTHER 14 FAMILIES. WE HELPED EITHER WITH HOME REPAIRS OR WITH RENTAL OR MORTGAGE ASSISTANCE. JUST AN FYI. WE JUST MET WITH THE FOUNDATION BOARD A COUPLE OF FEW WEEKS AGO, AND WE'VE INCREASED OUR GRANT THIS YEAR TO THEM 225,000 THAT WILL BE REPORTING ON TO YOUR NEXT YEAR. WE ALSO PROVIDED RENTAL ASSISTANCE TO RESIDENTS WITHIN OUR VARIOUS COMMUNITIES IN WHICH WE'RE PARTNERS, SO WE ASSISTED 38 FAMILIES LAST YEAR WITH RENTAL ASSISTANCE ALL IN GARLAND WITH ABOUT $38,000. IN ADDITION , WE HAVE, AND, UH I'VE SPOKEN WITH SEVERAL OF YOU PERSONALLY ABOUT THIS. WE HAVE A NEIGHBORHOOD IMPROVEMENT GRANT. WE HAVE GRANTS UP TO $5000. THAT CAN BE USED IN ADDITION TO THE NEIGHBORHOOD VITALITY GRANTS THAT THE CITY GIVES, AND OURS HAS A LOT LESS RESTRICTIONS THAN THE CITIES SO WE WOULD ENCOURAGE ANY NEIGHBORHOOD ASSOCIATION IN THE H O. A THAT WOULD LIKE TO APPLY FOR A GRANT. WE HAVE SET ASIDE 12 GRANTS THIS YEAR AT $5000 EACH AND WE WOULD LOVE TO BE ABLE TO SPEND THAT MONEY LAST YEAR. THE ONLY GRANT THAT WE AWARDED FOR NEIGHBORHOOD

[00:25:01]

ASSISTANCE WAS FOR RIDGEWOOD PARK AND DISTRICT FOUR. AH THAT WE CONTRIBUTED JUST OVER $5000 FOR THEM TO MAKE IMPROVEMENTS TO THEIR ENTRYWAY. IN ADDITION, LAST YEAR, WE DID GIVE MONIES AND GAVE FANS TWO GOOD SAMARITANS OF GARLAND TO THE ACP E TO THE GARLAND ASSOCIATION FOR HISPANIC AFFAIRS TO THE GARLAND ANIMAL SHELTER AND TO HABITAT FOR HUMANITY AND WE'RE VERY EXCITED ABOUT OUR RELATIONSHIP AND BEING ABLE TO SUPPORT THEM AS WELL. UM MR MAYOR. THAT'S ABOUT ALL I HAVE TO SAY. RIGHT NOW. A COUPLE OF THINGS I WANT TO SHARE WITH YOU. AH AS I SAID , WE ARE VERY HOPEFUL ABOUT BEING ABLE TO CLOSE ON SOME LAND AND PROVIDE SOME MORE AFFORDABLE SENIOR HOUSING. WE KNOW IN THE CITY OF GARLAND THAT WE ARE DESPERATELY SHORT OF AFFORDABLE SENIOR HOUSING, AND WE'RE DOING EVERYTHING WE CAN TO SEE HOW WE CAN PARTICIPATE WITH OUR PARTNERS TO DO THAT. THE OTHER THING I WILL TELL YOU IS THAT THE BOARD HAS AUTHORIZED AND WE ARE IN NEGOTIATIONS AND AGAIN. WE'LL HAVE LOTS OF EXCITING NEWS FOR YOU NEXT YEAR AS A RESULT OF THIS PROGRAM, BUT AH WE WILL BE FUNDING SHORTLY A $200,000 GRANT TO THE SALVATION ARMY FOR RENTAL AND MORTGAGE ASSISTANCE IN THE CITY OF GARLAND FOR ASSISTANCE OF UP TO $5000 FOR 40 FAMILIES IN GARLIC. AND THIS IS NOT JUST UH, I'M A SUGAR DADDY. HERE'S YOUR CHECK. THIS IS AN ENTIRE PROCESS OF WHERE THOSE IN NEED GET EDUCATION. THEY NEED TO GET HELP WITH THEIR BUDGETS. THEY GET HELP WITH THEIR INCOME. THEY GET HELP WITH THEIR JOBS. THEY GET HELP WITH EVERYTHING. IT'S NOT JUST WRITING CHECKS, AND SO WE'RE WE'RE JUST NEGOTIATING THE FINAL ROUND OF THAT. BUT THE BOARD HAS APPROVED THE $2000 200,000 DOLLARS GRANT FOR THAT SO UM I WILL TELL YOU THIS ABOUT THE BOARD. UH I'VE BEEN NOW JUST OVER. A YEAR AND A HALF SEEM TO BE TWO YEARS. AS UH, STAFF MEMBER FOR THIS GREAT GROUP. I WILL TELL YOU THAT THE FIVE BOARD MEMBERS THAT CURRENTLY SERVE AT G. HFC TRULY HAVE A SERVANT'S HEART AND EVERYTHING THEY SAY AND EVERYTHING THEY DO IS ALL ABOUT. HOW DO WE HELP PEOPLE WHO NEED HELP, AND WE ARE COMMITTED TO CONTINUE THAT HELP WHENEVER WE CAN. WITH THAT, MR MAYOR, I'LL BE HAPPY TO ANSWER ANY QUESTIONS OR HEAR ANY CRITICISM OR COMMENTS. ANY QUESTIONS? UH, PRO TIM MORRIS. THANK YOU, MAYOR. I DON'T HAVE A QUESTION. BUT DAVID, WHAT YOU HAVE DONE? IS NOTHING SHORT OF A MIRACLE. UM AND MY DISTRICT HAS BEEN A BENEFICIARY OF A LOT OF THIS, BUT IT'S BEEN ACROSS THE CITY AND IT HAS BEEN AMONG OUR CITIZENS WHO HAVE THE MOST NEEDS. AND I KNOW FROM WHAT YOU JUST SAID. YOU LEFT OUT MORE GOOD DEEDS THAN YOU SHARED. AND I JUST THANK YOU. THANK YOU. THANK YOU. THANKS TO THE BOARD.

THANK YOU FOR A JOB WELL DONE, AND WE'RE VERY I AM VERY EXCITED ABOUT MOVING FORWARD WITH ALL THESE THINGS AND UM, SUPPORTING AS MUCH AS POSSIBLE. SO THANK YOU. THANK YOU, MAYOR. VERY GOOD . THANK YOU, MA'AM. I WOULD JUST SAY THAT, UH. THESE DECISIONS AND ALL THESE GOOD THINGS THAT YOU'RE HEARING ABOUT CAME FROM DIRECTION FROM OUR BOARD, WHO REALLY SAID. WE REALLY WANT TO START HELPING FOLKS. YOU KNOW, THIS IS A THIS IS QUITE A DIFFERENT BOARD FOR MANY YEARS AGO, AND YOU KNOW THE CITY OF GARLAND RUNS WELL BECAUSE OF MR BRADFORD AND HIS STAFF AND HOPEFULLY G HFC RUNS WELL BECAUSE OF ME AND MY STAFF, BUT THE DECISIONS YOU KNOW, COME FROM YOU GUYS AND DECISIONS COME FROM OUR BOARD. AND SO, UH, THE ONLY THINGS YOU OWE ME IS BEING ABLE TO MOVE FORWARD WITH THE TOOLS AND THE MONEY THAT THEY'VE EMPOWERED ME TO GO SPEND AND USE SO, BUT THANK YOU, COUNCILOR WILLIAMS. THANK YOU VERY THANK YOU, SIR. AMEN TO PORTENDS COMMENTS. MY QUESTION IS, UH, HOW MUCH YOU DID, AND THE. THE INDIVIDUALS WHO ARE IMPACTED INDIVIDUALS THAT THAT THAT G H. IT'S YOUR ORGANIZATION IS UPLIFTING. UM. AND I GUESS I'M GONNA ASK YOU TO DO A LITTLE FORECASTING. GIVEN THE UNCONTROLLABLE. FACTORS THAT ARE BEYOND OUR CONTROL IN YOUR CONTROL FROM AN ECONOMIC STANDPOINT. PARTICULARLY AS IT RELATES TO SINGLE FAMILY HOUSING. WHAT CHALLENGES DO YOU SEE OR ANTICIPATE? MOVING FORWARD. AH, THAT, UM. THAT MIGHT IMPACT THE PROGRAMMING. PARTICULARLY AS RELATES TO THE AFFORDABLE SINGLE FAMILY UNITS. ANY THOUGHTS IN MY ENEMY? NO, COUNCILMAN, I WILL TELL YOU THAT

[00:30:04]

AND CERTAINLY MR ADAMS HERE, UH , IN THE RESIDENTIAL CONSTRUCTION BUSINESS, NOT IN AFFORDABLE JUST IN GENERAL KNOWS THE CHALLENGES THAT WE FACE. I WILL TELL YOU THAT WE ARE PREPARED. WE HAVE MIGHT OFFERS ON ALL SORTS OF LAND THROUGHOUT THE CITY, AND WE SIMPLY HAVE SELLERS WHO ARE UNWILLING TO COME OFF OF INSANE PRICES. JUST QUITE FRANKLY. UM. I COULD GET IN LOTS OF DETAILS AND SHARE LOTS OF CRAZY NUMBERS THAT ARE OUT THERE. UM THE CHALLENGE. IS GOING TO BE NOT ONLY THE CONTINUED INCREASE IN RENTS THAT ARE CAUSING PEOPLE'S CHALLENGES.

THE INCREASE IN PROPERTY TAXES. THE INCREASE IN INSURANCE, YOU KNOW, UH WHEN THE COUNCIL CONSTRUCTION GOES UP, THEN THE COST OF REPLACING GOES UP, WHICH MEANS YOUR INSURANCE GOES UP ALONG WITH IT. THE VALUE OF PROPERTY TAXES. EVERYTHING ELSE . YEAH UTILITIES GO UP. SO, UM.

YOU KNOW, WE WISH WE HAD A BLANK CHECK THAT WE COULD BE EVERYBODY'S SUGAR DADDY. AND SO YOU KNOW, ONE OF THE CHALLENGES IS THAT, UH AND IT'S ONE OF THE REASONS THAT WE'RE EXCITED ABOUT THIS PROGRAM WITH THE SALVATION OF REFERENTIAL ASSISTANCE IS THAT IT'S NOT JUST HERE'S A CHECK. IT'S NOT JUST A 30 DAY FIX. IT'S A LONG TERM. LET ME HELP YOU. LEARN HOW TO TAKE CARE SO. HMM I BELIEVE THAT WE CAN MAKE POSITIVE IMPACTS. THEIR WHAT I DON'T KNOW IS I JUST CAME FROM A CONFERENCE LAST WEEK IN AUSTIN. AND I WILL TELL YOU THAT I HEARD TWO ECONOMISTS SPEAK, AND IF THEY'RE CRYSTAL BALL IS ANYTHING ACCURATE, AND BY THE TIME WE MEET AGAIN, WE'RE GOING TO BE IN THE MIDDLE OF A GOOD RECESSION. AND YOU KNOW, THE GOOD NEWS IS MAYBE WE'RE IN A RECESSION. TOO BAD NEWS IS WE'RE IN A RECESSION. AH! I DON'T KNOW . RIGHT NOW. I KNOW THAT WE SIMPLY CANNOT AFFORD TO PAY $100,000 FOR A VACANT LOT TO BE ABLE TO BUILD A $270,000 HOME.

IT JUST IS. IT'S JUST IMPOSSIBLE TO DO. UM ARE WE CAN'T BUY A $200,000 HOUSE AND SPEND $150,000 TO REMODEL IT AND BE ABLE TO SELL IT FOR $275,000. SO YOU KNOW, I DON'T KNOW WHERE THAT ENDS. I CERTAINLY THINK THAT, UH, WE'RE SEEING SOME PRICES COME DOWN, I'M TOLD IN TERMS OF CONSTRUCTION. I THINK ONCE THE. THE CRAZINESS OF THE MARKET KIND OF SETTLES. THEN WE MAY SEE SOME SOME SELLERS COME BACK WITH SOME MORE REASONABLE NUMBERS. UM I WILL TELL YOU AND THIS IS NO DISRESPECT IS THAT TRYING TO WORK IN EXISTING NEIGHBORHOODS IS VERY DIFFICULT TO BE ABLE TO BUILD A HOUSE THAT LOOKS LIKE THE REST OF THE NEIGHBORHOOD THAT COMPLIES WITH CURRENT CODE. AH AND SO YOU KNOW, THERE'S THESE ARE NOT EASY TASK TO OVERCOME. THE OTHER CHALLENGE WE HAVE, I BELIEVE IS THAT YOU KNOW A LOT OF OUR PROGRAMS, PARTICULARLY OUR MORTGAGE ASSISTANCE PROGRAMS ARE LIMITED TO FIRST TIME HOME BUYERS THAT THEIR EXISTING HOME BUYERS THAT WE MAY BE ABOUT TO HELP OTHERWISE. YOU KNOW, I'M HOPEFUL THAT WHEN WE GO INTO OUR RETREAT NEXT MONTH, WE'LL BE LOOKING AT OTHER ALTERNATIVES OR OTHER PROGRAMS THAT WE COULD COULD COULD BRING FORTH FOR POSSIBLE CONSIDERATION. BUT YOU KNOW, COUNCILMAN, IT'S ALL ABOUT MONEY AND WE. WE'RE NOT POOR, BUT WE'RE NOT RICH, EITHER. AND, UH, AGAIN. I HAVE WE HAVE A BOARD THAT IS AS TRULY COMMITTED TO THE CITIZENS OF GARLAND. AND SO I THINK WE WILL CONTINUE AND A I WILL TELL YOU THAT. YOU KNOW , THE RENTAL PROGRAM CAME AS A RESULT OF MAYOR PRO TEM MORRIS CALLING AND SAYING, WHERE CAN WE FIND MORE MONEY TO HELP FOLKS AND MONA WOODARD CALLING ME AND SAYING PEOPLE ARE KNOCKING ON MY DOOR? I NEED HELP. AND, YOU KNOW, WE WENT TO THE SALVATION ARMY. AND THEY TOLD US THEY RAN THEIR MONEY IN FEBRUARY AND THAT THEY'VE ALREADY TURNED AWAY 174 FAMILIES SINCE FEBRUARY THAT THEY COULD NOT GIVE ASSISTANCE TO SO IF WE DID THE SAME PROGRAM FOR ALL 174, THAT'S $875,000, YOU KNOW, AND SO WE'RE TRYING TO TAKE THOSE RESOURCES COUNCILMAN AND USE THEM WHERE WE THINK THEY HAVE THE MOST IMPACT. WE BELIEVE THAT DELIVERING 24 AFFORDABLE UNITS FOR SENIORS, WE BELIEVE THAT DEVELOPED DELIVERING SIX HOMES AFFORDABLE, BUT YOU KNOW THAT'S THAT'S JUST RIGHT NOW AND WE NEED TO BE ABLE TO GO TO OUR PARTNERS. WE NEED TO BE ABLE TO FIND LAND THAT WE CAN WE CAN WORK WITH. UH LAST YEAR I WORKED WITH COUNCIL MEMBER MORE. WE WERE HOPEFUL TO BRING AN AFFORDABLE SENIOR COMMUNITY TO HIS DISTRICT AND, UH, THE BUILDERS SIMPLY COULD NOT GET FINANCING RIGHT NOW, IF YOU'RE FAMILIAR WITH ALL THE T, D, H C A, UM THE CURRENT BOND, PRO BRON BANDWIDTH THEY HAVE AVAILABLE LAST YEAR. IT WAS OVER

[00:35:05]

SUBSCRIBED BY FOUR TIMES. SO IF THEY'VE GOT $100 MILLION PEOPLE WENT AND ASKED FOR 400 MILLION, AND SO FROM THAT YOU'RE GOING TO A LOTTERY. AND IF YOU DON'T GET THE LOTTERY, YOU DON'T GET NO MONEY. DON'T GET NO MONEY. YOU DON'T BUY NO LAND YOU DON'T GET YOU KNOW THE WHOLE JUST GOES DOWNHILL FROM THERE AND SO AH, I WILL TELL YOU, ALL OF YOU AND I WOULD ENCOURAGE YOU THAT IF YOU HAVE A NEED IN YOUR DISTRICT IF YOU HAVE A NEED, YOU SEE AN OPPORTUNITY THAT WE COULD STEP IN AND HELP SOMEBODY. YOU HAVE A FAMILY. THAT'S A NEED, UH, WE WOULD LOVE TO LOOK AT POSSIBLY A PROGRAM OF BUYING HOUSES AND DOING A LIFE ESTATE IF WE COULD AFFORD THEM, BUT I CAN'T. WE CAN'T PAY CURRENT MARKET RIGHTS FOR STUFF LIKE THIS. YOU KNOW WE CAN. WE CAN WE CAN DELIVER AFFORDABLE HOUSING, BUT WE CAN'T DELIVER AFFORDABLE HOUSING AT $350,000 PLUS SO I'VE PROBABLY TALKED ALL THE WAY AROUND AND SAY THE BOTTOM LINE IS IT'S JUST TOO EXPENSIVE RIGHT NOW, BUT AGAIN, WE'RE OPEN TO HEAR ANYBODY'S THOUGHTS OR SUGGESTIONS. THANK YOU VERY MUCH, SIR. FOR THAT ADVENTURE, AND I'VE NEVER MORE CONFIDENT KNOWING YOU AND YOUR BOARD MEMBERS VERY WELL. THERE'S NO IDEA THAT I'D RATHER HAVE AT THE HAMMER THIS SHIP AT THIS TIME, AND THEN THE TEAM YOU'VE GOT. SO I WANNA SAY THANK YOU ON BEHALF OF OUR CONSTITUENTS. FOR WHAT YOU'RE DOING, SITTING WHAT YOU'RE GOING TO DO AND THE PARTNERSHIPS THAT YOU'VE ESTABLISHED. SO THANK YOU VERY MUCH TO YOUR ENTIRE TEAM. THANK YOU, MAYOR. ANY ADDITIONAL QUESTIONS. OKAY WELL, WE'LL JUST SAY, YOU KNOW, TO EXPAND A LITTLE MORE ON THE CASTLE DRIVE PROPERTY. UM AND NOT NOT WHAT IT NOT WHAT IT WAS AND ALL THAT. BUT UH, THE PROCESS OF REACHING OUT TO THE G I S D STUDENTS FOR THE DESIGN WORK THAT WAS SEEN A LOT OF PRESENTATION AND I TOLD I TOLD THE KIDS THE STUDENTS. THIS IS WELL THAT YOU KNOW, OVER MY TIME DOING THIS. I HAVE SEEN COUNTLESS HOURS OF PRESENTATIONS AND RENDERINGS AND PLANS AND THAT SORT OF THING AND THERE.

YOU KNOW THE TWO SEPARATE PROJECTS. UM ARE BOTH 100% BUILDABLE. THEY ARE THEY ARE 100% DOABLE ON THAT ON THAT PIECE OF PROPERTY OR SOME OTHER PIECE OF PROPERTY. IF THE ONE THAT DOESN'T GET SELECTED, IT'S STILL AND FOR YOU GUYS TO REACH OUT TO THEM AND TO INCLUDE THEM IN THIS I WAS FANTASTIC BECAUSE IT GIVES THEM IT STARTS THEIR CAREERS IN DESIGN. IT STARTS THEIR CAREERS IN ARCHITECTURE AND THE FUN OF MAKING PRESENTATIONS. YOU KNOW, SOMEDAY THOSE THOSE FOLKS WILL BE STANDING IN FRONT OF A PLAN COMMISSION OR CITY COUNCIL PITCHING THESE IDEAS, AND I'M REALLY LOOKING FORWARD TO AND I DON'T KNOW WHICH ONE. I DON'T KNOW WHICH DESIGN WILL ULTIMATELY GET GET CHOSEN. BUT AGAIN, AS I TOLD THEM THAT DAY.

I'D VOTE FOR EITHER ONE OF THEM. EITHER ONE OF THEM IS WAS FANTASTIC. SO, UH, YOU KNOW SO THANK YOU FOR THAT. I THINK THAT'S I THINK THAT'S A HUGE, HUGE WIN FOR THE COMMUNITY ON A LOT OF DIFFERENT LEVELS AWAY BY THE TALENT OF THE STUDENTS PRESENTATION ABSOLUTELY ABSOLUTELY LOVE THEIR FACE STRUCTURE. YEAH AND NOT ONLY THAT THE CULINARY STUDENTS MADE US LUNCH, WHICH WHICH WAS SAVING WHICH WAS AN ADDED ADDED BONUS TO THE PROCESS. BUT UH THAT'S ALL I HAVE. AND JUST TO ECHO. THANK YOU AND THE BOARD FOR ALL THE ALL THAT YOU'RE DOING. IT IS FANTASTIC. I WE REALIZED THAT YOU KNOW THIS IS POSSIBLY THE HARDEST ENVIRONMENT EVER TO DO AFFORDABLE HOUSING. PEOPLE COME TO ME, CASTLE. WE WHY CAN'T WE DO MORE AFFORDABLE HOUSING AND IN MY ANSWER HAS BECOME. I'M NOT EVEN SURE AFFORDABLE AND HOUSING SHOULD BE USED IN THE SAME SENTENCE. THERE IS SUCH A GAP THERE, BUT TO SEE THAT YOU KNOW YOU ARE DOING WHAT YOU CAN. YOU ARE DOING IT WHERE YOU CAN, UM I APPRECIATE THAT. I LOOK FORWARD TO SEEING YOU NEXT YEAR. LOOK FORWARD TO SEEING IN BETWEEN THEM. BUT YOUR REPORT NEXT YEAR EXCITED THANK YOU, SIR. AND THAT

[4b. Preview of 2022-23 Proposed Budget ]

WILL BRING US TO ADAM. FOUR B PREVIEW OF 2022 23 PROPOSED BUDGET. DAVID YOU MIGHT WANT TO STICK AROUND FOR THIS ONE QUESTION. WE WAIT TWO DAYS. I THINK HE'S

[00:40:12]

IN TIP. I THINK DAVID IS INTENTIONALLY BEING SLOW TO LEAVE. I GOT THE HITCH. GOOD EVENING, MAYOR CITY COUNCIL. WE'RE HERE TONIGHT TO PRESENT AN OVERVIEW OF THE 2022 23 PROPOSED BUDGET THAT WILL BE FORMALLY PRESENTED TO TONIGHT BY THE CITY TOMORROW NIGHT FOR THE BY THE CITY MANAGER. I'M MATT WATSON ON THE FINANCE DIRECTOR FOR THE CITY AND WITH ME IS ALISON STEADMAN, WHO IS THE BUDGET DIRECTOR. AND FIRST I'LL GO OVER OUR TAX BASE GROWTH OR TAX RATE.

AS WELL AS SOME OF THE ASSUMPTIONS FOR SOME OF OUR LARGE REVENUE, AND THEN I'LL TURN IT OVER TO ALLISON TO GET INTO A LITTLE MORE DETAIL ON THE CITY MANAGER'S PROPOSED BUDGET.

SO TO START OUR TAX BASE FOR 2022 IS AT A RECORD HIGH OF $21.4 BILLION, AND THAT'S ABOUT A $3 BILLION INCREASE FROM THE PREVIOUS YEAR, OR 16.4% WHICH IS THE HIGHEST THAT I'M AWARE OF EVER BEING ON RECORD, AND YOU CAN ALSO SEE THAT OVER THE LAST 10 YEARS, YOU KNOW, FUELED BY WHAT WE WERE JUST TALKING ABOUT THE HOT REAL ESTATE MARKET DEVELOPMENT MARKET. OUR TAX BASE IS ACTUALLY DOUBLED OVER THE LAST IN YEARS. THE NEXT LARGE SHOWS THE PERCENTAGE CHANGE FOR OUR TAX BASE OVER THE LAST 10 YEARS AND YOU CAN SEE PRE COVID. WE WERE RANGING IN THE 10% AND THEN ONCE COVID HIT IT, WE WERE RIGHT. THAT WENT DOWN TO ABOUT FIVE THAT WE HAVE DEFINITELY REBOUNDED TO ABOUT 16.4 FOR 2022 OF THIS ABOUT 15% OF IT IS RELATED TO EXISTING PROPERTY.

ABOUT 1.4% OF THIS IS RELATED TO NEW CONSTRUCTION, WHICH WE'LL TALK ABOUT LATER. BUT WITH THE IMPACTS SP TWO NEW CONSTRUCTION HAS BECOME EXTREMELY IMPORTANT IN NEW REVENUE GROWTH FOR THE CITY OF GARLAND. I'LL REMIND COUNCIL THAT THAT 15% OF EXISTING PROPERTY MORE OR LESS THAT IS CAPPED AT 3.5% BY SB TWO. HERE'S A LOOK AT OUR NEW CONSTRUCTION VALUES OVER THE LAST 10 YEARS, AND YOU CAN SEE THAT WE'VE BEEN AVERAGING OVER THE LAST FIVE YEARS ABOUT 275 MILLION OF NEW CONSTRUCTION PER YEAR AND THIS YEAR WE'RE JUST UNDER THAT AT ABOUT 264 AND AGAIN, THAT'S ABOUT 1.4% OF OUR TOTAL 16.4% GROWTH. HERE'S A LOOK AT EACH CATEGORY BROKEN DOWN BY RESIDENTIAL COMMERCIAL AND THEN OUR BUSINESS, PERSONAL PROPERTY, AND YOU CAN SEE RESIDENTIAL ON AVERAGE INCREASED 17.6% AND EXISTING PROPERTY INCREASED. 16% 16.4. I'M SORRY.

COMMERCIAL SOUL AND INCREASE OF 16.9% TOTAL, WHILE THE CHANGE IN THE EXISTING PROPERTY WAS AT 14.4 AND THEN BUSINESS PERSONAL PROPERTY IN THE INVENTORIES OF BEEN RECORDED AT ABOUT AN 8.8% INCREASE, SO ALL THAT AND TOTAL AGAIN 16.4 WHICH IS STILL STRANGE FOR ME TO SAY SUCH A LARGE NUMBER, BUT HUGE GROWTH THIS YEAR. NOW TO GET INTO THE IMPACTS OF SB TWO. I MENTIONED THAT WITH SP TWO OR REVENUE IS CAPPED AT 3.5% AND HOW THEY KEPT THAT IS THROUGH ADJUSTMENTS IN THE TAX RATE. OUR TAX RATE WAS AT 70.74 BEFORE WE INCREASE IT 6.5 CENTS FOR THE BOND PROGRAM.

AND YOU CAN SEE THAT DUE TO THE IMPACTS. SB TWO. WE'RE ALMOST BACK DOWN TO THE TAX RATE THAT WE HAD PRIOR TO THE 6.5 CENT TAX RATE INCREASE. FOR THE BOND PROGRAM, SO WE'RE PROPOSING A TAX RATE OF 71.67 THAT WILL ALSO BE PRESENTED TOMORROW. WANTED TO PROVIDE THE CALCULATION FOR HOW THIS IS DETERMINED. UM BASICALLY WHAT YOU DID IS YOU TAKE LAST YEAR'S REVENUE OR THE CURRENT YEAR'S REVENUE, WHICH IS THAT ABOUT 68.3 MILLION YOU, THEN ADJUST YOUR CURRENT YEAR TAX BASE, WHICH IS AT 21.4 MILLION. YOU NEED ADJUST THAT DOWN FOR NEW CONSTRUCTION. AND FOR THE VALUATIONS THAT ARE IN OUR TIFFS. SO THAT GETS TO A NET OF ABOUT 20.7. AND THEN FROM THERE, YOU JUST SIMPLY DIVIDE YOUR LAST YEAR'S REVENUE BY THAT TAX BASE , AND THAT GETS YOU TO A RATE THAT YOU'LL HEAR US TALK ABOUT CALLED THE NO NEW REVENUE RATE. WHICH PREVIOUSLY BEFORE SP TWO IS CALLED THE EFFECTIVE TAX RATE, WHICH BASICALLY IS THE RATE TO GET THE EXACT SAME OUT OF MONEY THAT YOU COLLECTED THIS YEAR. AND THEN FROM THERE, YOU CAN GO UP 3.5% SO WE THEN INCREASE THAT BY 3.5% TO GET TO A 0.34070 AND M RATE. AND THEN A NEW LINE THAT YOU HAVE NOT SEEN BEFORE IS SOMETHING CALLED THE UNUSED INCREMENT. IF YOU HAVE A PROPOSED TAX RATE AND

[00:45:06]

APPROVE THAT TAX RATE THAT IS BELOW THAT, 3.5% YOU CAN BANK THAT UNUSED INCREMENT FOR UP TO THREE YEARS. IN 2020. WE HAD A JUST A SLIGHT WHERE WE WERE SLIGHTLY BELOW THAT 3.5% CAP, MOSTLY DUE TO TIMING OF OUR CERTIFIED VALUES. THAT WAS THE COVID YEAR ARE CERTIFIED VALUES DIDN'T COME UNTIL VERY LATE AUGUST, SO WE HAD TO MAKE SOME ASSUMPTIONS AND WITH OUR TAX RIGHT UNTIL THEN, AND WE WERE JUST SLIGHTLY BELOW. SO BASED ON THE WORKSHEETS, WE CAN THEN BANK THAT AND REUSE THAT AT A FUTURE DATE SO THAT ROLLS INTO THE O AND M RATE. BUT AND INCREASES THAT BY ABOUT 0.4 FROM THERE, YOU ADD YOUR DEBT SERVICE TAX RIGHT, WHICH IS ON CHANGED AND IS WHAT IS USED TO FUND OUR BOND PROGRAMS AND TO ALSO FUND ALL OF OUR EQUIPMENT. LARGE EQUIPMENT REPLACES FOR THE C I P SO THE TOTAL PROPOSED TAX RATE THAT YOU'LL SEE TOMORROW IS A 0.7167 . AND THAT IS ABOUT A FOUR CENT DROP FROM OUR CURRENT TAX RATE. WANTED TO PROVIDE A SLIDE ON WHAT THE AVERAGE IMPACT TO A RESIDENT WHO HAS A HOMESTEAD EXEMPTION AND THEN ALSO PROVIDE A IMPACT FOR SOME OF THAT HAS THE HOMESTEAD AND THE SENIOR EXEMPTION. IN 2022, THE AVERAGE MARKET VALUE FOR A HOME AND THE CITY OF GARLAND ABOUT $272,000. THAT'S WHAT THAT WAS ABOUT 26% INCREASE FROM THE PRIOR BUT IF YOU HAVE A HOMESTEAD EXEMPTION BY LAW, YOU CAN ONLY HAVE YOUR ASSESSED VALUE INCREASED 10. SO THE ASSESS VALUES FROM THE PREVIOUS YEAR WITH A CAP THAT AT ABOUT 213,000 AS THE AVERAGE HOME VALUE. FROM THERE. THE CITY COUNCIL HAS APPROVED A HOMESTEAD EXEMPTION OF 10% ON TOP OF THAT. SO THAT REDUCES THAT ASSESS VALUE BY ABOUT 21,000 TO GET TO A TOTAL TAXABLE VALUE ABOUT 191 886 IN THE CITY OF GARLAND. THEN, FROM THERE, I MENTIONED THAT OUR TAX RATE GOES DOWN BY ROUGHLY 5, OR FOUR CENTS. AND THAT BASICALLY EQUATES TO ABOUT $55 INCREASE IN TAXES FOR THE AVERAGE RESIDENT IN THE CITY OF GARLAND. NOW WHAT WILL WANT TO SAY THAT THIS IS A RESIDENT WITH A HOMESTEAD EXEMPTION? COMMERCIAL PROPERTIES AND RENTAL UNITS DO NOT HAVE HOMESTEAD EXEMPTIONS AND PROBABLY SAW AN INCREASE UP TO THAT 26% THAT WE THAT I TALKED ABOUT ON THE MARKET VALUES. AND NOW THIS IS FOR THE SENIOR. SO SOMEONE THAT HAS A HOMESTEAD PLUS THE SENIOR EXEMPTION AGAIN, THE AVERAGE HOME VALUE OF 272,000. YOU CAP THAT AT 10% BY THE STATE LAWS REQUIREMENT TO DO SO. AND THEN YOU HAVE ANOTHER 10% HOMESTEAD EXEMPTION THAT HAS BEEN OFFERED BY THE CITY'S CITY COUNCIL, PLUS A FLAT $56,000 REDUCTION ON TOP OF THAT FOR THE CITY COUNCIL HAS APPROVED SENIOR EXEMPTION. SO YOU GET TO A AVERAGE TAXABLE VALUE FOR US SENIOR CITIZEN IN THE CITY OF GARLAND ABOUT 136,000. AGAIN. THE TAX RATE DROPPED FOUR CENTS, OR ABOUT 5% SO THE AVERAGE SENIOR WHAT IT SAW ITS WE'LL SEE ABOUT A $77 INCREASE IN THEIR TAXES FOR 2022. WITH THAT I'LL MOVE INTO THE GENERAL FUND REVENUE. UM IN THE PAST, WE'VE TYPICALLY SHOWN THE TOP THREE REVENUE SOURCES WHICH ARE PROPERTY TAX SALES TAX IN OUR R O I OR RETURN ON INVESTMENT THAT'S CHARGED THE GP AND ALBERT THIS YEAR WE'VE ADDED OUR LANDFILL AND DISPOSAL COSTS BECAUSE WE WANTED TO OUTLINE OF WHAT A REVENUE SOURCE OUR LANDFILL HAS TURNED INTO FOR US. SO YOU CAN SEE THAT, UH, OUR PROPERTY TAXES ARE ABOUT 34% OF OUR TOTAL REVENUE SALES TAX AT 19.7. AND THEN, UH, ROO EYES AT 10.6 AND THEN OUR SANITATION SURROUNDING THAT OUT ABOUT 7.9% OF OUR TOTAL REVENUE. SO MOVING ON TO SALES TAX. ANOTHER AMAZING STORY HERE HAVE DEFINITELY SOMETHING WE COULD NOT HAVE PREDICTED ON HOW WE WERE GOING TO COME OUT OF THE PANDEMIC, BUT YOU CAN SEE THAT IN 2022 IN THE CURRENT YEAR, WHERE ESTIMATED ABOUT 7.5 MILLION OR ABOUT OVER 20% MORE AND SALES TAX REVENUE. THAN WHAT WAS ORIGINALLY CONTEMPLATED WHEN WE ADOPTED THE BUDGET, AND THIS IS STATEWIDE, UH EVERYONE HAS SEEN VERY LARGE INCREASES, AND IT'S LIKE A COMBINATION OF FACTORS OF INFLATIONARY PRESSURES, BUT ALSO JUST PEOPLE CAME OUT OF THE PANDEMIC, READY TO SPEND SOME MONEY, AND SO WE'VE SEEN HUGE INCREASES IN RETAIL. INSIDE WITH OUR RESTAURANTS. ALL VERY GOOD, VERY PROMISING. IT'S ACROSS

[00:50:02]

EVERY ECONOMIC SECTOR MANUFACTURING AND THEN ON TOP OF THAT, WE'VE HAD SUBSTANTIAL GROWTH IN OUR ONLINE SALES TAX, DRIVEN BY PURCHASES FROM AMAZON AND, UM, UM, IN THE LIKE. RETURN ON INVESTMENT TO GDP AND L IS BASICALLY IN LIEU OF THE FRANCHISE FEES AND THE SELL PROPERTY TAXES THAT G P AND L WOULD PAY IF THEY WERE PRIVATELY OWNED, AND THE RETURN ON INVESTMENT HAS BEEN WAS HELD AT EXACTLY 19.5 MILLION FOR ABOUT 10 YEARS, BUT BY CITY COUNCIL POLICY, WE ARE INCREASING THAT ROUGHLY 3.5 AFTER EXACTLY 3.5% PER YEAR, SO WE HAVE CONTINUED THAT FUNDING STRATEGY TO INCREASE THE RETURN ON INVESTMENT FROM G P AND L 3.5% THIS YEAR BUT KNOW THAT THIS IS A CITY COUNCIL POLICY AND CAN BE CHANGED AT ANY TIME. AND FINALLY THE LANDFILL AND OUR DISPOSAL SERVICES. UH, WHAT FLOWS INTO THIS IS REALLY THREE COMPONENTS FOR US. THE FIRST IS WHAT WE CALL OUR DISPOSAL FEES, WHICH ARE THE RATES THAT ARE INTERNAL DEPARTMENTS PAY FOR THE LANDFILL SERVICE AND THE LARGEST ONE THEIR SANITATION AS TONNAGE INCREASES ACROSS THE BOARD, AND AS WE GET MORE TONNAGE FROM OUR PRIVATE HAULERS AND COMMERCIAL HAULERS. THERE'S LESS COST THAT EACH TON HAS TO BEAR FOR INTERNAL CUSTOMERS, SO WE WERE ABLE TO REDUCE OUR INTERNAL COST OF SERVICE RIGHT BY ABOUT 5% THIS YEAR, WHICH IS IN TURN HELPS OUT OUR INTERNAL DEPARTMENTS SUCH AS SANITATION AND WASTEWATER. ON TOP OF THAT ABOUT 12.9 MILLION OF THIS IS COMING FROM OUR COMMERCIAL ACCOUNTS AND OTHERS AREAS CITIES THAT WE HAVE. AND THEN A NEW FACTOR HAS BEEN OUR GAS TO ENERGY REVENUE. AND HOW DO WE REPORT? THIS IS THE 1ST $600,000 WE RECEIVE FROM OUR GUEST GUEST ENERGY WE PUT INTO OUR LANDFILL SINKING FUND AND THE SINKING FUND IS UTILIZED TO PAY FOR WASTE NEWS, NEW WAY SELL DEVELOPMENTS AND ALSO OUR POST CLOSURE COSTS, WHICH WILL BE A FUTURE COSTS AND IS A LIABILITY THAT WE BOOK AND OUR FINANCES RIGHT NOW. AND THE INTENT OF THIS IS TO BE ABLE TO CASH FUND THE BIG LARGE PROJECTS FOR OUR LANDFILL WITHOUT HAVING TO GO ISSUE DEBT. SO THE 1ST 600,000 THAT IS GOING TOWARDS THAT PIECE , AND THEN THE REST FLOWS INTO THE GENERAL FUND AS ADDITIONAL PROFITS AND WE ARE ESTIMATING RIGHT NOW ABOUT ADDITIONAL 600,000 GOING TO THE GENERAL FUND. SO YOU CAN SEE THAT OUR TOTAL REVENUES ARE ABOUT 16.6 MILLION FOR THE PROPOSED BUDGET THIS YEAR. AND I'LL TURN IT OVER TO ALLISON TO GET INTO THE CITY MANAGER'S BUDGET PRIORITIES.

THANK YOU, MATT. THE FOLLOWING WHERE THE CITY MANAGER'S PRIORITIES WHEN REVIEWING AND DEVELOPING HIS PROPOSED BUDGET THIS YEAR. HIS NUMBER ONE PRIORITY WAS COMPENSATION IN MERIT INCREASES TO STAY COMPETITIVE IN A TIGHT LABOR MARKET. HIS SECOND PRIORITY WAS TO ADDRESS THE IMPACT OF INFLATION ON EXISTING SERVICE LEVELS. HIS THIRD PRIORITY WAS TO PRIORITIZE NECESSARY FUNDING TO MEET PUBLIC SAFETY NEEDS. HIS FOURTH PRIORITY WAS TO INCREASE OPERATIONAL FUNDING FOR NEW AND ADDITIONAL FACILITIES CONSTRUCTED THROUGH THE 2004 AND 2019 BOND PROGRAMS, AND FINALLY , HIS FIFTH PRIORITY WAS TO MAINTAIN HIGH LEVELS OF RESERVES TO RESPOND TO UNFORESEEN FINANCIAL CHALLENGES. GETTING INTO HIS FIRST PRIORITY COMPENSATION AND MERIT INCREASES TO STAY COMPETITIVE FOR GENERAL SCHEDULE EMPLOYEES THAT PROPOSED BUDGET INCLUDES A 5% COMPENSATION INCREASE FOR CIVIL SERVICE. WE HAVE INCLUDED A MARKET PLUS 5% MERIT INCREASE FOR CIVIL SERVICE. THIS BRINGS US TO AN AVERAGE OF 6.4% FOR FILES. FIRE FIRE. CIVIL SERVICE EMPLOYEES AND AVERAGE OF 6.3% FOR POLICE, CIVIL SERVICE EMPLOYEES, AND FINALLY, WE HAVE INCLUDED THE INCREASE TO THE CITY'S CONTRIBUTION FOR THE CIVIL SERVICE RETIREMENT STABILITY PROGRAM, WHICH WAS SCHEDULED TO INCREASE FROM 1.7.

1.75% TO 2% THIS YEAR. THE CITY MANAGER HAS TRIED TO ADDRESS THE IMPACT OF INFLATION ON OUR EXISTING SERVICE LEVELS. WE'VE HAD MANY DISCUSSIONS WITH THE COUNCIL ABOUT THE IMPACT OF INFLATION ON THE CAPITAL IMPROVEMENT PROGRAM. WE ARE ALSO EXPERIENCING THAT ON OUR OPERATING SIDE. UM WE HAVE SEEN $7.3 MILLION CITYWIDE IMPACT RELATED TO FUEL AND ENERGY COSTS . FLEET MAINTENANCE COSTS, EQUIPMENT REPLACEMENT COST. POSTING AND PRINTED PRINTING COSTS, RENEWAL OF SERVICE CONTRACTS FOR ALL OF OUR VARIOUS DEPARTMENTS AND FINALLY INSURANCE PREMIUMS. CITY MANAGERS. THIRD PRIORITY WAS PROVIDING NECESSARY FUNDING TO MEET PUBLIC SAFETY NEEDS. THIS INCLUDES THE RENEWAL OF THE AXON BODY WORN CAMERAS AND TASER

[00:55:05]

CONTRACT CARTRIDGES CONTRACT, WHICH HAD A SERIES OF PRETTY SIGNIFICANT COSTS INCREASE FROM THE PRIOR YEAR BUDGET AS WELL AS FUN. FIRST RESPONDER, BALLISTIC SHIELD PROTECTION AND LAW ENFORCEMENT POLICIES AND TRAINING, SOFTWARE AND SERVICES FOR THE POLICE DEPARTMENT. FOR FIRE. HE HAS PROPOSED THE ADDITION OF NINE FIREFIGHTER POSITIONS TO OPERATE HIGHWAY BLOCKERS. THIS IS ALSO INCLUDED IN THE PROPOSED BUDGET. THE FIRE DEPARTMENT HAS RECEIVED A GRANT MATCH WITH N C T COG FOR THE PURCHASE OF THREE HIGHWAY BLOCKERS. SO WE'RE PROPOSING THE STAFF TO OPERATE THAT EQUIPMENT AS WELL AS SWAT MEDICAL EQUIPMENT AND TRAINING. THE S C B A S BOTTLES, CYLINDER REPLACEMENT AND NEW INVENTORY MANAGEMENT SYSTEM. HIS FOURTH OPERATING BUDGET PRIORITY WAS TO PROVIDE FUNDING FOR FACILITIES CONSTRUCT TO THE BOND PROGRAMS. THIS INCLUDES ANIMAL SERVICES, THE ADDITIONAL EDITION OF DOG AND CAT FOOD, AS WELL AS KENNEL, TEMPORARY LABEL LABOR FOR INCREASED ANIMAL CAPACITY AND GROUNDS MAINTENANCE FOR THE NEW ANIMAL FACILITY. FOR THE PARKS DEPARTMENT. THIS INCLUDES CLEANING OF 14 NEW ADDITIONAL PARK RESTROOMS ADDED IN THE 2019 BOND PROGRAM, CHEMICALS AND REPLACEMENT PARTS FOR SPLASH PADS FUNDED THROUGH THE 19 BOND PROGRAM EQUIPMENT TO ENSURE OUR DOWNTOWN SQUARES PROBABLY MAINTAINED ONCE THE CONSTRUCTION IS COMPLETE. UM, THIS IS INCLUDED IN THIS YEAR'S OPERATING BUDGET AS A EARLY YEAR PURCHASED TO ENSURE THE EQUIPMENT IS RECEIVED IN TIME.

GIVEN THAT WE'VE HAD DELAYS IN RECEIVING EQUIPMENT, UM, PATIO FENCING FOR THE NEW PATIO EDITION AT GALE FIELDS RECREATION CENTER FOR RENTALS AND PROGRAMMING, AND FINALLY, SOME TOP DRESSING EQUIPMENT FOR OUR BAR BALL FIELDS. THE CITY MANAGER'S PROPOSED BUDGET MAINTAINS A HIGH LEVEL OF RESERVES TO RESPOND TO UNFORESEEN FINANCIAL CHALLENGES . UM THIS IS TO HAVE AN EXCESS OF 45 DAYS OF OPERATING EXPENDITURES. TO PROVIDE A SOURCE OF FUNDS TO RETAIN FINANCIAL FOR FLEXIBILITY AND MITIGATE UNFORESEEN FUTURE INFLATIONARY PRESSURES IN THE INCREASED PROBABILITY OF RECESSION, AS INDICATED BY THE FEDERAL RESERVE. 22 23 PROPOSED BUDGET FOR THE GENERAL FUND PROPOSES REVENUES OF 209.9 MILLION AND THE USE OF 4.2 MILLION OF ONE TIME FUNDING FOR A TOTAL FUNDING RESOURCE IS OF 214.1 MILLION. THE GENERAL FUND PROPOSES THE USE OF FUNDS OF 147.9 MILLION FOR SALARIES AND BENEFITS AND 66.2 MILLION FOR OPERATING SPINACH, CHER'S CAPITAL AND TRANSFERS FOR A TOTAL FUNDING. USE OF 214.1 MILLION. AH THE PROPOSED BUDGET ALSO INCLUDES MEETING THE GENERAL FUNDS. UH FUN BALANCE REQUIREMENT OF 30 DAYS OF OPERATING EXPENDITURES, OR 16.2 MILLION. ARE CHANGES IN RESOURCES FROM THE 21 22 ADOPTED BUDGET IS A $2.6 MILLION INCREASE TO THE PROPERTY TAX ARE ROUGHLY 3.7% INCREASE OVER THE PRIOR YEAR. A $7.5 MILLION INCREASE TO OUR SALES TAX, WHICH IS, MATT SAID EARLIER. IS IT 22.1% INCREASE? $755,000 INCREASE TO OUR GP AND OVERT RETURN ON INVESTMENT. UH, A $1.86 MILLION INCREASE TO OUR LANDFILL AND DISPOSAL SERVICES REVENUE AS WELL AS AN 852,000 INCREASE TO OUR FRANCHISE FEES WITH ALL OTHER REVENUE INCREASING 981,000. PROPOSED CHANGE IN RESOURCES OVER LAST YEAR'S ADOPTED BUDGET IS 14,000,477. PROPOSED CHANGE IN EXPENDITURES FROM LAST YEAR'S BUDGET FOR THE GENERAL FUND. IS FUNDING MERIT OF THE T M. R S RIGHT ADJUSTMENT AND CIVIL SERVICE. RETIREMENT STABILITY BENEFIT INCREASE FOR A TOTAL OF 5,470,000. WE ARE ALSO PROPOSING OR FUNDING INCREASES TO EMPLOYEE AND RETIREE HEALTH INSURANCE PLAN CONTRIBUTIONS. TOTALLY IN 1,554,000. THE PROPOSED BUDGET INCLUDES SEVERAL ADDITIONAL POSITIONS FOR THE GENERAL FUND.

TOTALLY AND 1.1 MILLION OF THE 11 FULL TIME POSITIONS INCLUDED IN THE PROPOSED BUDGET. NINE OF THOSE ARE ASSOCIATED WITH THE FIRE DEPARTMENT, ADDING THOSE NINE FIREFIGHTERS FOR THE OPERATE THE CITY BLOCKERS. WE'RE PROPOSING A. $2.4 MILLION INCREASE TO OUR FLEET, FUEL AND

[01:00:03]

EQUIPMENT REPLACEMENT COSTS, PRIMARILY DRIVEN BY INFLATION, AND JUST THE UNSEEN PRESSURES WE'VE SEEN ON GAS PRICES AS WELL AS THE COST TO BUY NEW EQUIPMENT OR REPLACEMENT EQUIPMENT ON ANNUAL BASIS. AND INCREASED HER ONGOING OPERATIONAL EXPENDITURES OF 2,958,000 AN INCREASE TO OUR ADDITIONAL ADDITIONAL CAPITAL EXPENDITURES OF 599,000. AN INCREASE TO OUR SUPPORT SERVICE CHARGES AND TRANSFERS OF 4.7 MILLION AND THEN OUR ADJUSTMENT FOR LAST YEAR'S PRIOR YEAR. ONE TIME EXPENDITURES IS A DECREASE OF 4.6 MILLION. WE ARE ALSO PROPOSING, UH LESS USE OF OUR FUND BALANCE RESERVES, RETURNING AN ADDITIONAL 305,000 OVER HOW MUCH WE UTILIZED LAST YEAR OF ONE TIME FUNDS. TOTAL CHANGE AND PROPOSED EXPENDITURES. THIS 14,477,000. IN KEEPING WITH THE FUNDING STRATEGY SET BY THE CITY COUNCIL. FUNDING FOR STREET IMPROVEMENTS IS INCREASING 1.6 MILLION FOR FY 22 23. THIS CONTINUES THE FUNDING FOR THE ANNUAL INFRASTRUCTURE, UH, REPAIR AND REPLACEMENT PROGRAM ENTIRELY IN THE OPERATING BUDGET WHILE WE HAVE THE AVAILABILITY OF TAX NOTES. 2022 23 PROPOSED UTILITY RATES. UM ARE STATED HERE BASED ON A TYPICAL RESIDENTIAL USER, UM THE ELECTRIC UTILITY INCREASED THEIR RIGHT TWO CENTS IN JULY. 1ST 2022 TO RESPOND TO HIGHER NATURAL GAS AND ELECTRIC POWER PRICES. SO THAT IS STATED HERE.

UM NO CHANGE IS PROPOSED FOR THE FY 22 23 PROPOSED BUDGET. OUR WATER UTILITY RATES ARE PROPOSED INCREASE 3.43% OR $3.43. EXCUSE ME. PRIMARILY DRIVEN TO THE NORTH TEXAS MUNICIPAL WATER DISTRICTS RATE INCREASING FOR WHOLESALE WATER. THEY'RE PROPOSING A RATE INCREASE OF 13.4. ARE SUPER PROPOSED TO LOWER IT RATE INCREASE OF $2.08 IS PRIMARILY DRIVEN BY CASH OR CAPITAL PROJECTS AND OUR DEBT SERVICE COVERAGE RATIOS OVER THE NEXT FIVE YEARS AND, UH, TO CORRESPOND WITH OUR C I P. AND FINALLY, THE PROPOSED INCREASE OF $2 FOR A TRASH AND RECYCLING PROGRAM IS PRIMARILY DRIVEN BY INCREASES IN FUEL AND FLEET MAINTENANCE COSTS AND OUR DESIRE TO MAINTAIN CURRENT SERVICE LEVELS. THE TOTAL TYPICAL RESIDENT BILL WILL INCREASE $7.51 TO A TYPICAL RESIDENTIAL BILL OF 274 AND 28 CENTS PER MONTH. THE PROPOSED CONSOLIDATED BUDGET IS 966.1 MILLION. THIS IS AN INCREASE OF 140 49.3 MILLION OVER THE PRIOR YEAR'S ADOPTED BUDGET. OF THAT INCREASE. APPROXIMATELY 70 75 MILLION IS ASSOCIATED WITH OPERATING OUR ELECTRIC UTILITY. AN ADDITIONAL 35 MILLION IS ASSOCIATED WITH THE EXECUTION OF THE AMERICAN RESCUE PLAN ACT PROGRAM. WE ARE PROPOSING A $35 MILLION INCREASE OF THAT FEDERAL RELIEF FUNDING RECEIVED. UM AS A TRANSFER OVER TO THE SIP TO BE SPENT ON PROJECTS. THE GENERAL FUND BUDGET IS PROPOSED IS, UH 204 POINT 1,000,214 204.0.1 MILLION. EXCUSE ME. THIS IS AN INCREASE OF 14.2 MILLION. AND FINALLY, WE HAVE OUR BUDGET REVIEW CALENDAR. TONIGHT WAS YOUR PREVIEW AND HIGHLIGHTS OF THE OPERATING BUDGET. TOMORROW NIGHT. THE CITY MANAGER WILL FORMALLY PRESENT HIS PROPOSED BUDGET TO THE CITY COUNCIL. ON SATURDAY, AUGUST 13TH, WE WILL HAVE A SPECIAL BUDGET WORK SESSION FULL OF DEPARTMENT PRESENTATIONS GOING INTO MORE DETAIL ON ALL THE INFORMATION I TRIED TO SUMMARIZE TO YOU TONIGHT. AH ON MONDAY, AUGUST 15TH. WE WILL BE BACK FOR ANY CONTINUED DISCUSSION ON THE OPERATING BUDGET ON TUESDAY, AUGUST 16TH AT THE REGULAR SESSION, WE WILL HOLD A PUBLIC HEARING ON THE BUDGET AND TAX RATE. ON AUGUST 23RD THAT TUESDAY. WE'RE SEEKING A SPECIAL SECTION SESSION TO HAVE A PUBLIC HEARING ON THE BUDGET AND THE TAX RATE AS WELL AS A WORK SESSION, HOPEFULLY SEEKING SOME PROPOSED COUNCIL CHANGES IF YOU HAVE ANY OR DIRECTION TO STAFF ON FINALIZING THE BUDGET. UM FOR OUR ULTIMATE GOAL OF ADOPTING THE BUDGET ON THAT SEPTEMBER 6TH TO STAY REGULAR SESSION. UM I WANTED TO NOTE FOR THE CITY

[01:05:06]

COUNCIL THAT THE LAST DAY THAT YOU ARE ABLE TO TAKE ACTION PER OUR CITY CHARTER IS ON THE 21ST DAY OF SEPTEMBER. AND WITH THAT, I'LL TAKE ANY QUESTIONS. VERY GOOD. I HAVE NO ONE IN THE QUEUE. BUT WE HAVE. WE HAVE MANY MORE OPPORTUNITIES TO ASK QUESTIONS ABOUT THIS BUDGET AND WE'LL GET THE FORMAL PRESENTATION TOMORROW NIGHT AND THE BINDER THAT GOES WITH IT.

ALL RIGHT. THANK YOU BOTH. THAT BRINGS US TO ITEM FOUR C MUNICIPAL SETTING DESIGNATIONS.

[4c. Municipal Setting Designations ]

GOOD EVENING MAYOR COUNCIL. SO, MR CHESHIRE AND I ARE GOING TO BE TALKING TO YOU TONIGHT ABOUT MUNICIPAL SETTING DESIGNATIONS AND WHAT THESE ARE THERE, OFTENTIMES CALLED MSD S FOR SHORT. AND THE BRIEFING WILL BE ABOUT MSD S IN GENERAL NOT GOING INTO ANY PARTICULAR PROPOSALS WHICH MAY COME FORWARD TO YOU ALL IN THE FUTURE. JASON. I HAVE RECEIVED A FEW INQUIRIES. UM BUT WE WILL LIKELY START SEEING THESE REQUESTS COME FORWARD WHO WANTED TO GO OVER JUST KIND OF WHAT THESE ARE AND SOME KIND OF WHAT THE PROCEDURE LOOKS LIKE. AND JASON WILL KIND OF GO OVER AN EXAMPLE OR TWO THAT WE'VE SEEN. UM AND SO I JUST JUMP RIGHT INTO IT. SO WHAT THESE ARE A MUNICIPAL SETTING DESIGNATION IS AN OFFICIAL STATE DESIGNATION GIVEN TO A PROPERTY. UM THAT CERTIFIES THAT DESIGNATED GROUNDWATER AT THE PROPERTY IS NOT USED AS POTABLE WATER AND IS PROHIBITED FROM FUTURE USE CURRENT AND FUTURE USE AS POTABLE WATER BECAUSE THAT GROUNDWATER IS CONTAMINATED IN EXCESS OF THE APPLICABLE POTABLE WATER PROTECTIVE CONCENTRATION LEVEL AND THE PROHIBITION PROHIBITION MUST BE IN FORM OF A CITY ORDINANCE OR RESTRICTIVE COVENANT THAT IS ENFORCEABLE BY THE CITY. IN THIS CASE WOULD BE A B A CITY ORDINANCE AS APPROVED BY THE CITY COUNCIL. AND THE PURPOSE OF THE MST LAWS TO PROVIDE A LESS EXPENSIVE AND FASTER ALTERNATIVE TO THE EXISTING STATE ENVIRONMENTAL REGULATIONS GOVERNING THE INVESTIGATION AND CLEAN UP OF CONTAMINATED GROUNDWATER. SO THIS BASICALLY OFFERS AN ALTERNATIVE RATHER THAN REQUIRING FOR REMEDIATION AND CLEAN UP OF THE GROUNDWATER, CONTENDED GROUNDWATER OF A SITE. IT ALSO OFFERS AN ALTERNATIVE TO ESSENTIALLY, UM, HAVE A RESTRICTION THAT SAYS, THIS GROUNDWATER ON THIS PARTICULAR PIECE OF LAND WILL NOT BE USED AS POTABLE WATER. IT'S REALLY WHEN IT COMES DOWN TO CANNOT BE USED AS DRINKING WATER. UM THE.

OF COURSE, THE STATUTE SUBSTITUTES A MUNICIPAL ORDINANCE IN LIEU FTC REGULATIONS TO PROTECT THE PUBLIC AGAINST EXPOSURE TO THE CONTAMINATED GROUNDWATER. AND UH , KINDA LIKE I JUST SAID THAT BY PROVIDING THIS ALTERNATIVE WAY TO ADDRESS CONTAMINATED GROUNDWATER THAT WILL NOT BE USED AS POTABLE WATER PERSONS MAY BE MORE INCLINED TO DEVELOP AND REDEVELOPMENT PROPERTIES AND MUNICIPAL AREAS THAT HAVE SUCH GROUNDWATER. SO IN THE CASE OF GARLAND THAT MAY OPEN UP SOME REDEVELOPMENT OPPORTUNITIES ON SITES THAT MAY HAVE THIS ISSUE.

AND AGAIN KIND OF OFFER THAT ALTERNATIVE PROCESS THROUGH THE CITY AND THROUGH TC Q VERSUS REQUIRING FOR REMEDIATION AND REMOVAL. SO THE CITY IS NOT REQUIRED BY STATUTE TO ACCEPT PROCESS OR SUPPORT MSD APPLICATIONS. HOWEVER FOREIGN MSD TO BE CERTIFIED BY TC Q.

MUNICIPAL SUPPORT FOR THE APPLICATION IS REQUIRED. IT IS NEEDED. THEREFORE CERTIFICATION OF AN NSD BY TC Q IS SIGNIFICANTLY CONTROLLED BY THE CITY. AND I'LL, UM KIND OF HANDED OVER JASON HERE IN A LITTLE BIT. HERE'S A GRAPHIC, UM, JUST KIND OF SHOWING JUST VISUALLY KIND OF WHAT HAPPENED IN THIS D GENERALLY LOOKS LIKE SO YOU CAN SEE THIS KIND OF PURPLE SHADED AREA. THIS IS A PIECE OF LAND KIND OF FROM HORIZONTAL PERSPECTIVE ON THE SURFACE, SO THAT'S KIND OF THE RESTRICTIONS OR THE RESTRICTED AREA OF AN MSD APPLICATION, FOR EXAMPLE. AND IT SHOWS KIND OF THE VERTICAL LEVEL OF WHICH IT GOES DOWN AS WELL. SO IT SHOWS THE CONTAMINATED GROUNDWATER AT GROUNDWATER ZONE ONE WHICH GROUNDWATER ZONE ONE WOULD BE THE ONLY AREA THAT WOULD BE ELIGIBLE FOR THE MSD. IT DOESN'T GO DOWN DEEPER THAN THAT. SO THAT KIND OF SHOWS THE BOXING THE BOXING IN OF THE LIMITS OF THE MSD PROPERTY. AND BASICALLY

[01:10:06]

SAYS THIS PROPERTY MAY BE DEVELOPED. BUT THIS WATER IN QUESTION, GROUNDWATER IN QUESTION CANNOT BE USED AS POTABLE WATER. SO. AND YOU KNOW OVER JASON. THERE'S TALK ABOUT AN EXAMPLE OR TWO. A COUPLE OF EXAMPLES AND THIS IS A REALLY GOOD SLIDE BECAUSE IT IT'S A GOOD ILLUSTRATION OF THE DIFFERENT STRATA THAT YOU WOULD FIND IF YOU UM, DRILL DOWN VERTICALLY IN THE GROUND. OF COURSE, THERE'S SEVERAL LAYERS THAT HAVE BEEN DEPOSITED OVER THOUSANDS. TENS OF THOUSANDS MILLIONS OF YEARS. UM AND THERE CAN BE SEVERAL DIFFERENT AQUIFERS UNDER ANY GIVEN PIECE OF PROPERTY. TYPICALLY M S D S DEAL WITH VERY SHALLOW GROUNDWATER AND A COUPLE OF EXAMPLES, ONE THAT YOU ALL ARE VERY FAMILIAR WITH OUR FIRE TRAINING AND ADMINISTRATION FACILITY. WE GOT THE MSD. I MEANT TO GO BACK AND LOOK AT IT.

I BELIEVE IT WAS IN 2005. WHEN WE GOT THAT MSD. IT WAS THE NINTH AND THE STATE. SO WE'RE PRETTY PROUD OF THAT. WE WERE ONE OF THE FIRST ORGANIZATIONS TO UTILIZE MSD, AND THAT FACILITY WAS A UM, A FORMER INDUSTRIAL SITE. THERE WAS AN ELECTORAL PLATER THERE. LARGE ELECTORAL PLATER AND THERE WAS LOW LEVEL GROUNDWATER CONTAMINATION. SO THE SITE OWNER PRIOR TO THE CITY HAD DONE QUITE A BIT OF ASSESSMENT. AND AS PART OF THE PURCHASE, WE ACTUALLY USED GRANT MONEY THAT THE CITY GOT THROUGH E P. A GROUND BROWNFIELDS GRANT TO FURTHER ASSESS THAT SIDE. YOU KNOW, OF COURSE, WHEN WE TALK ABOUT THIS PROCESS, THE TC EQ IS REALLY LOOKING OUT FOR PUBLIC SAFETY. THAT'S THEIR PART OF THE PROCESS NOT TO SUGGEST THAT THE CITY CAN'T ADD STIPULATIONS TO ENHANCE THAT, BUT IT'S REALLY THE T CQ ROLL TO LOOK NUMBER ONE TO MAKE SURE THAT THE UM, THAT THE PLUME IS STABLE. WE ACTUALLY HAD TO DRILL I REMEMBER DRILLING A WATER WELL IN COMMERCE STREET AFTER THE CITY ACQUIRED THAT PROPERTY BECAUSE THE STATE ASKED US TO DEVELOP THAT ADDITIONAL WELL TO MAKE SURE THAT THE PLUME LIKE YOU SEE ILLUSTRATED HERE, THEY WANTED TO MAKE SURE THAT THAT PLUME WAS STABLE. SO THAT'S AN EXAMPLE OF YOU KNOW THE MSD.

SOMETIMES THERE'S BACK AND FORTH, THE STATE MAY ASK FOR ADDITIONAL INVESTIGATIONS ON ANY PARTICULAR SET TO MAKE SURE THAT THEY'RE COMFORTABLE WITH THE MSD. ANOTHER EXAMPLE. WE TALK TO YOU ALL IN EXECUTIVE SESSION. I WON'T. I WON'T GIVE YOU THE ADDRESS, BUT WE TALKED WITH YOU ALL ABOUT A DRY CLEANER SIDE IN GARLAND THAT WE'VE HAD SOME, UM, THAT IS THAT IS SHOWN SOME INTEREST AND PERHAPS UTILIZING AN MSD TO HELP DEVELOP A REDEVELOPED THAT PROPERTY, I SHOULD SAY DRY CLEANERS ARE SORT OF A NOTORIOUS EXAMPLE FOR GROUNDWATER CONTAMINATION AGAINST SHALLOW GROUNDWATER CONTAMINATION. AND WHEN I SAY SHALLOW, I'M TALKING TYPICALLY NO MORE THAN 2030 FT BELOW GROUND LEVEL, SO WE'RE NOT TALKING ABOUT CONTAMINATION DOWN TO IN THIS AREA, THE MAJOR. BELOW THE LOWER LOW LEVEL GROUNDWATER CONTAMINATION THAT THAT THAT WOULD TYPICALLY BE UM , WOULD BE A GOOD FIT FOR USE OF AN MST. SO THOSE ARE A COUPLE OF EXAMPLES. UM, OF COURSE GARLANDS . A HEAVY INDUSTRIAL AREA. WE'VE GOT A LOT OF SITES THAT MIGHT BENEFIT FROM THIS PROCESS FOR REDEVELOPMENT AND MIGHT MAKE THEM A BIT MORE ATTRACTIVE FOR REDEVELOPMENT. SO AND IF IT'S SOMETHING THAT YOU ALL ARE COMFORTABLE WITH, WE CAN WE CAN CERTAINLY MOVE FORWARD WITH THE PROGRAM. SURE THANKS, JASON. I'LL GO OVER. KIND OF WITH THAT PROCEDURE LOOKS LIKE FROM VERY HIGH LEVEL PERSPECTIVE. SO IN SOME OF THIS IS GOVERNED BY TC.

Q. BUT THEY DO LEAVE IT REALLY UP TO CITIES TO KIND OF DETERMINE THEIR OWN PROCESSES.

THERE ARE A NUMBER OF OTHER CITIES IN THE METROPLEX THAT ENTERTAIN AND CONSIDER THESE AND INCLUDES, BUT NOT LIMITED TO DALLAS, FORT WORTH, PLANO, ARLINGTON AND FARMERS BRANCH ARE JUST A FEW THAT COME TO MIND AND, INTERESTINGLY, ENOUGH COURSE, JASON MENTIONED THAT THE CITY HAS DONE ONE BEFORE CITIES CAN BE APPLICANTS THAT DOESN'T ALWAYS HAVE TO BE A DEVELOPER.

LANDOWNER IT CAN BE CAN BE THE CITY GOVERNMENT. BUT INTERESTINGLY ENOUGH, IN ADDITION TO THE FIRE ADMIN BUILDING THAT WAS DONE, WE ALREADY HAVE A MUNICIPAL SETTING DESIGNATION FEE AND OUR FEE SCHEDULE. UM SO INDICATING THERE WAS SOME INTENT TO ALLOW THESE AND SO THERE'S A $5000 APPLICATION FEE IN OUR THE SCHEDULE FOR THAT, BUT THERE'S REALLY NO PROCEDURE ORDINANCE OR ANYTHING BEYOND THAT ANYWHERE IN OUR G D. C OR CODE OF ORDINANCES. SO FROM A HIGH LEVEL PERSPECTIVE, UM, AN APPLICATION FOR AN MSD CAN BE MADE THROUGH THE CITY OF GARLAND AND T. C Q. UM, STAFF, OF COURSE, WOULD WOULD REVIEW IT, ANY CONSULTANTS OR ANYTHING LIKE THAT KIND OF HELPING STAFF AND HEALTH DEPARTMENT OUT LOOKING AT THESE IN CONJUNCTION WITH T. C Q. UM THERE WOULD BE PUBLIC NOTIFICATIONS SO THE STATE REQUIRES, UM A CERTAIN LEVEL OF NOTIFICATIONS TO WATER WELL, OWNERS WITHIN FIVE MILES, OF COURSE, THE MUNICIPALITY WHERE THESE ARE LOCATED ANY OTHER EFFECTIVE MUNICIPALITIES WITHIN BELIEVE, HALF A MILE THAT IT MAY AFFECT IN TERMS OF GROUNDWATER. UM BUT THEN, IN ADDITION TO THAT

[01:15:06]

CITY'S MAY CHOOSE TO NOTIFY SURROUNDING PROPERTY OWNERS AND THE LIKE, SO FEW OTHER CITIES DO THAT ARE THOUGHT ON. THIS WAS WE COULD NOTIFY SURROUNDING PROPERTIES WITHIN 400 FT.

CONSISTENT WITH OUR ZONING CASES , SO DON'T NECESSARILY GO LESS OR MORE JUST KIND OF KEEP IT CONSISTENT WITH THAT, AS WELL AS POSTING A SIGN THE PROPERTY, WHICH WE'VE NOTICED SOME SOME CITIES DOING THAT AS WELL. NOTICED ALSO A FEW CITIES AND THIS IS NOT A STATE REQUIREMENT . BUT A FEW CITIES CHOOSE TO HAVE A PUBLIC MEETING AND IN ADVANCE OF WHEN THE COUNCIL UM ENTERTAINS THE ORDINANCE, KIND OF A COUPLE OF WEEKS OR SO IN ADVANCE, HAVING A PUBLIC MEETING OF SOURCE, PERHAPS AN OPEN HOUSE OR SOMETHING LIKE THAT, WHERE FOLKS CAN COME AND LEARN MORE ABOUT IT AND ASK QUESTIONS SO WE THOUGHT THAT WAS A PRETTY GOOD IDEA. UM AND THEN IT GOES TO CITY COUNCIL FOR FORMAL ACTION AND ORDINANCE APPROVAL AND IF APPROVED, AND OF COURSE, OTHERS NEED TO BE ON BOARD AS WELL. THE WELL OWNERS AND UTILITY, WATER AND WASTEWATER PROVIDERS IN THE AREA. BUT IF EVERYONE'S ON BOARD FROM THAT STANDPOINT T C Q CAN ISSUE THE MSD CERTIFICATE TO THE APPLICANT, AND FROM THAT POINT ON THE APPLICANT WOULD COMPLY WITH THE APPLICABLE ENVIRONMENTAL REGULATIONS. SO THAT'S KIND OF A HIGH LEVEL. LOOK AT THE PROCESS FAR AS NEXT STEPS. WE, UM, WORK WITH THE ATTORNEY'S OFFICE. WE MAY NEED TO KIND OF ADD SOME LANGUAGE OR MENTIONED TO IT IN OUR ORDINANCE CODE OF ORDINANCES, WHICH WOULD BRING BACK TO THE FULL COUNCIL FOR FORMAL CONSIDERATION, BUT UNLESS OTHERWISE DIRECTED, WE KIND OF MIRROR SOME OF THE PROCEDURES AND PROCESSES WE'VE OUTLINED HERE TONIGHT. AND, UM REALLY BEYOND THAT MAYOR. I MENTIONED A COUPLE OF JUST LOCAL DECISIONS LIKE THE 400 FT NOTIFICATION AND THINGS LIKE THAT, BUT OTHERWISE, I THINK DIRECTION WISE. WE'RE JUST KIND OF LOOKING FOR A THUMBS UP FROM COUNCIL. OKAY? GOT A FEW FOLKS IN THE QUEUE. CUSTOMER BASS. THANK YOU. UM WELL, APPRECIATE THE PRESENTATION. THANK YOU WILL AND JASON, CAN YOU GUYS TELL ME? UM HOW DOES DEVELOPING DEVELOPING THE PROPERTY AFFECT THE GROUNDWATER? WELL THE GOOD QUESTIONS SO GROUND MISTY'S WERE SORT OF TAILORED TOWARDS LOW LEVEL GROUNDWATER CONTAMINATION. UM. PROPERTY OWNERS ARE RESPONSIBLE PARTIES WILL BE BACK UP. TC CUES GOAL THEIR STANDARDS FOR GROUNDWATER REMEDIATION RELATE TO DRINKING WATER STANDARDS, SO THEY WANT CONTAMINATED GROUNDWATER. THE ULTIMATE GOAL WAS TO HAVE THAT CONTAMINATED GROUNDWATER BACK TO SORT OF THE NATURAL STATE DRINKING WATER STANDARDS. UM IN A LOT OF CASES, YOU KNOW THE HI . SOME CASES, IT'S NOT FEASIBLE TO PUMP AND TREAT GROUNDWATER. IT'S A IT'S A POTENTIALLY EXPENSIVE PROCESS. SOMETIMES GEOLOGY MAKES THAT DIFFICULT. OFTEN THE STATE WILL ASK. PROPERTY OWNERS ARE RESPONSIBLE PARTIES FOR ALMOST PERPETUAL MONITORING, WHICH CAN ADD A SIGNIFICANT COST OVER TIME. SO THE COURSE THE IDEA OF THE MSD IS NOT FOR ALL GROUNDWATER. BUT IT'S YOU KNOW, ON SITES WHERE GROUNDWATER IS NOT USED, PARTICULARLY SHALLOW WATER. AND INSIGHTS LIKE THE CITY OF GARLAND, WHERE WE HAVE A GOOD PUBLIC WATER SYSTEM THAT'S AVAILABLE TO YOU KNOW, EVERY SPOT IN THE CITY THAT IS, THOSE ARE SITES THAT ARE SORT OF TAILORED FOR M S. D. S BECAUSE YOU CAN USE THIS PROCESS TO, I GUESS FOR LACK OF A BETTER TERM MITIGATE THOSE POTENTIAL LONG TERM COST. THE STATE IS NOT GOING TO REQUIRE ANY FURTHER MITIGATION OR REMEDIATION WANTS A DEVELOPER PROPERTY OWNER HAS GONE THROUGH THE STEPS SO IT MAKES THEIR PROPERTY MORE. I GUESS THERE'S LESS POTENTIAL LIABILITY. FORWARD LOOKING LIABILITY, WANTS A PROPERTY OWNER OBTAINS MST OKAY, SO, UM. AND YOU KIND OF HIT ON MY NEXT QUESTION. THERE. YOU HOW DOES THIS DIFFER FROM WHAT THEY NORMALLY WOULD REQUIRE? UM. AND I GUESS YOU MENTIONED SO LET'S JUST SAY AS AN EXAMPLE. LET'S JUST TAKE WHERE YOU KNOW THE FIRE TRAINING FACILITY IS SO PRIOR TO THE CITY HAVING THAT PROPERTY SOMEBODY ELSE OWNED THAT PROPERTY. SO WERE THEY REQUIRED TO DO THESE THINGS THAT THE STATE REQUIRES. UM YOU KNOW , SUCH AS MY CONSTANT MONITORING AND THINGS LIKE THAT? YEAH THAT'S BASICALLY IT. YES SIR. IT'S PRETTY EXTENSIVE MONITORING IF IT'S A STABLE PLAN, WHICH LUCKILY ARE THE SOILS AROUND HERE, SORT OF IDEALLY SUITED FOR MST AS WELL BECAUSE THEY'RE VERY TIGHT SOILS. GROUNDWATER DOESN'T FLOW WELL IN SOILS THAT WE HAVE YOU GO, 100, MILES EAST, UM, TO WHERE MY IN LAWS LIVE IN EMORY, YOU KNOW, THEY'VE GOT A VERY PRODUCTIVE SHALLOW GROUNDWATER. WELL, THAT'S PRODUCES ENOUGH WATER TO IRRIGATE. MSC'S MIGHT NOT VERY BE A VERY GOOD, UM, SOLUTION THERE BECAUSE GROUNDWATER FLOWS, YOU KNOW,

[01:20:02]

LATERALLY WELL AND GARLAND. OUR SOILS ARE JUST REAL TIGHT, CLAY SOILS PRIMARILY, AND WE HAVE, UM , SHALE AT A FAIRLY SHALLOW LEVEL. SO A LOT OF THAT IF THERE IS ANY GROUND WATER OR CONTAMINATED GROUNDWATER, IT'S PERCHED ON THAT SHELL. IT'S SORT OF TRAPPED AND IT DOESN'T FLOW LATERALLY WELL, SO IT'S A REALLY GOOD OPTION FOR POTENTIAL OPTION I SHOULD SAY FOR GARLAND SCIENCE. OKAY AWESOME. THANK YOU. I APPRECIATE IT. THANK YOU, MAYOR. DEPUTY MAYOR PRO TIM SMITH. THANK YOU, MAYOR. JASON WILL APPRECIATE THE PRESENTATION. JUST A COUPLE OF QUICK THINGS. UM FIRST HAS TO DO WITH NOTIFICATIONS NOW IF WE HAD AN EMBASSY NEAR THE CITY BORDER.

I DON'T WANT TO TRADITIONAL PNC TYPE CASE WE WOULD NOTIFY OUR RESIDENTS AND THEN WE WOULD NOTIFY THE CITY GOVERNMENT OF THE CITY NEXT DOOR. DO WE BELIEVE THAT THAT IS AN APPROPRIATE APPROACH TO TAKE ON THIS TYPE OF THING? BECAUSE WE REALLY WANT TO MAKE SURE THAT YOU KNOW IF WE'RE ON THE EDGE OF THE CITY BORDER, AND THERE'S A RESIDENCE ON THE OTHER SIDE OF THE BORDER. WE REALLY WANT TO MAKE SURE WE'RE DIRECTLY CONNECTING WITH THOSE FOLKS. SO I'D LIKE TO SEE A SLIGHT CHANGE IN HOW WE HANDLE THESE TYPES OF NOTIFICATIONS FOR THIS SPECIFIC CIRCUMSTANCE, IF COUNCIL FEELS IT'S APPROPRIATE THAT'S THE FIRST ONE, THE SECOND I KNOW THIS IS NOT NECESSARILY A HIGH RISK USE. BUT I WOULD LIKE TO SEE HIS TREAT THE NOTIFICATION AREA IN THE SAME WAY MAYBE GO OUT A LITTLE FURTHER AND JUST WHATEVER WE DO, OUR HAZMAT ARE HIGH RISK. CLASSIFICATIONS SO REALLY, JUST TWO POINTS ON THE SAME THING. MORE COMMUNICATION.

UM AND I KNOW THE FIRST ONE OF THESE THAT WE DO IS GOING TO BE A LITTLE PAINFUL BECAUSE WE'RE GONNA HAVE A LOT OF EDUCATING TO DO WILL HAVE TO WORK THROUGH A LOT OF FEAR. UM BUT I'D RATHER OVER COMMUNICATE. AND BE OVERLY TRANSPARENT. IF WE COULD THANK YOU, MAYOR. CUSTOMER, WILLIAMS. THANK YOU, MAYOR. I THINK THANK YOU BOTH WILL AND JASON FOR THE PRESENTATION. JUST A QUESTION, OF COURSE, IS ONE IT IS LIKE TO SEE IN THE IF WE COME UP WITH A DRAFT PROCEDURE ON THIS THE BENEFITS. OF. IMPLEMENTING GOING TO THIS AND A POLICY OR NO ORDINANCE FORM. WHAT WOULD BE THE BENEFITS? OF WHAT'S GOING TO IT. UM AND ITS IMPACT ON POSSIBLE DEVELOPMENT DEVELOPMENT. MAYBE A NARRATIVE SOMETHING THAT SHOWS THAT THE 2ND 2ND THING IS THAT I WAS LOOKING AT THE T C E EXCUSE WEBSITE AND LET ME JUST SHARE SOMETHING WITH YOU. AND THEN I'LL ASK THE QUESTION. IT SAYS HERE THAT AN EXAMPLE ONLY ON THE CHART THAT YOU HAD UP THERE. THE COLORFUL CHART ON THE GROUND GROUNDWATER ZONE ONE WITHIN THE BOUNDARY OF THE MSD IS PROHIBITED AS A PORTABLE WATER SUPPLY. LAYING ON US ADJACENT TO THE MSD MAY STILL DRILL PORTABLE WALES ON THEIR PROPERTY. UNLESS THERE IS A PORTABLE WELL WITHIN ONE HALF MILE OF THE MSD BOUNDARY. THE GROUNDWATER CONTAMINATION WILL NOT BE INVESTIGATED OR REMEDIATED FOR PORTABLE WATER USE. DO YOU KNOW WHAT THAT MEANS? ARE YOU READING? ARE YOU READING FROM THIS DOCUMENT? NO I'M READING FROM A Q AND A. I WOULD LIKE TO. I WOULD LIKE TO TAKE A LOOK AT THAT. OKAY? I CAN I CAN I ANSWER IF YOU DON'T MIND AND GET BACK, OK? OKAY, BECAUSE I WAS JUST THAT THAT LAST NOTIFICATION THAT LAST PHRASE WHEN IT GOT MY ATTENTION. IT TALKS ABOUT, UH, THE GROUNDWATER CONTAMINATION WILL NOT BE INVESTIGATED OR REMEDIATED FOR PORTABLE USE. I CAN SEND THIS TO YOU. THAT WOULD BE GREAT. THAT'D BE GREAT. OKAY OKAY, BECAUSE IT'S IT DOESN'T I DON'T KNOW WHAT IT MEANS. SO I GUESS I'M ASKING. IT'S FROM THAT CHART IN THE LEVELS THERE. AND IT IT'S USED HERE AS AN EXAMPLE . BUT IT SHOWS ONLY FOR ZONE ONE SO I CAN FINISH TO YOU. AND NOW IF WE COULD, IF YOU CAN LOOK AT IT YOU AND WILL AND SO TO CLARIFY THAT WILL WILL RESPOND TO YOU ON THAT. ABSOLUTELY. OKAY. ALL RIGHT. THANK YOU, MA'AM. VERY GOOD. GUESTS ARE HEDRICK. THANK YOU, MR MAYOR. DO WE KNOW HOW MANY WELLS WE HAVE IN THE CITY? I DON'T. I'M TRYING TO THINK BACK OF TO THE NUMBER OF NOTIFICATIONS THAT WE HAD TO DO IN 2005. I DON'T KNOW IF THE TOP OF MY HEAD AND IS THERE A DATABASE OF POTENTIAL SITES LIKE BROWNFIELD SITES FOR MSD SITES? OR IS THAT PURELY IS IT PURELY DRIVEN BY A DEVELOPER COMES WITH THIS. MAYBE. CONTAMINATED AND WE WANT TO HAVE THIS DESIGNATION ON OUR PROPERTY. I THINK FROM OUR STANDPOINT, IT'S MORE DRIVEN BY

[01:25:05]

DEVELOPERS WHO ARE INTERESTED IN UTILIZING THIS PARTICULAR TOOL FOR DEVELOPMENT OR REDEVELOPMENT. SO THEN HOW IS THE WHO'S THE BURDEN OF DISCOVERING THE UM CONTAMINATION ON THEN. BECAUSE. THERE'S NO DATABASE. WE DON'T HAVE A DATABASE AND THE DEVELOPER NEVER COMES TO US. THEY CAN NEVER I MEAN IT SEEMS LIKE THEY MAY BE ABLE TO GET AROUND SOMEHOW. WHY WOULD THEY COME AT? COME WITH THIS DESIGNATION IF WE DON'T HAVE A DATABASE OF IT, AND THEY MAY NOT KNOW THAT THEY ARE CONTAMINATED EITHER. WE ARE ASKED NEBS AT OUR LANDFILL ENGINEER WHO WORKS FOR WEAVER ENVIRONMENTAL TO COME TONIGHT, AND I'M I'M GOING TO SEE IF HE CAN ANSWER THAT BETTER THAN I CAN. COME UP HERE. YEAH MUSICAL CHAIRS HERE REAL QUICK. THIS IS NEVZAT. YOU'RE ON HIS WITH WEAVER ENVIRONMENTAL. HE DOES. THE WEAVER ENVIRONMENTAL DOES ENGINEERING WORK TO OUR LANDFILL , AND THEY ALSO DO M S DS, WHICH IS WHEN I ASKED HIM TO BE GREAT.

OH ACTUALLY, T CQ HAS A SIGNIFICANT DATABASE AND WATER DEVELOPMENT BOARD HAS A COMPLETE DATABASE FOR ALL WATER WELLS. IN TEXAS. LIKE ANY TIME WE HEAR AN APPLICATION WE IDENTIFY ALL THE REGISTERED WATER WELLS, ESPECIALLY PUBLIC USED WATER WELLS. THEY'RE ALL REGISTERED. I MEAN, THERE'S NO WAY AROUND IT. SO WELLS IS NOT A PROBLEM. THE PROBLEM IS, UH, HOW DO WE KNOW ASIDE IS CONTIN ATED AND T. C Q ALSO HAS A LIKE THEIR CENTRAL REGISTRY HAS AN ALL DOCUMENTATION, IF ANY SITE HERE IN WITHIN GOLDEN PROPER. HAS ANY CONTAMINATION. SO THAT THERE IS NO UNKNOWN INFORMATION UNLESS LESS LIKE THERE ARE SOME KNOWN SUSPECTS LIKE HMM. GAS STATION OR OR DRY CLEANER AND THINGS LIKE THAT. SO THEY MAY CD MAY CHOOSE TO REQUIRE THEM TO DRILL A WELL AND SAMPLE IT. BUT AGAIN, AS JASON SAID, THIS ENTIRE AREA LAYS AND SEDIMENTARY SOILS OR AE DON'T REALLY HAVE GROUND. WHETHER THAT. IS GOING TO BE HAVE ANY SIGNIFICANT SIGNIFICANT MOMENTS. IT DOESN'T EVEN GENERATE IN THE GROUND WITH IT LIKE INTO LANDFILL OR CASTLE, THE ROYAL LANDFILL. WE SAMPLED THOSE FIELDS ON A SEMI ANNUAL BASIS. WE HAVE CASTLE DRIVE. WE HAVE 23 ROUNDS OF THE SIMPLE WE PUMP THE WELL DRY AND COME BACK NEXT DAY TO SAMPLE THE BARELY GENERATE OR PRODUCE A LITTER OF WATER. FOR SAMPLING PURPOSES. SO THEN. T C Q THAT HAS POTENTIAL DATABASE OR DATABASE SHOWING OF THE SIDES. IF THERE'S BEEN A SPILL OR SOMETHING LIKE THAT, OR A, UH BELOW GROUND GAS STORAGE TANK LEAK OR SOMETHING LIKE THAT, THAT'S THAT'S THAT'S ALL WILL BE AVAILABLE FROM ESPECIALLY GROUND WITH ANY KIND OF TANK WILL BE AVAILABLE TO TC Q. DIDN'T BELIEVE CITY IS GOING TO BE BURDENED WITH FIGURING OUT IF THERE WAS A CONTAMINATION.

OKAY? AND THEN THESE OTHER CASES LIKE THE FORMER FIRE FACILITY WHERE THERE WAS A CONTAMINATION THROUGH THE MANUFACTURING PROCESS, AND THAT'S IN SOME DATABASE AS WELL THAT WE'RE ABLE TO CROSS CHECK AGAINST YES, THE T. C Q. MAINTAINS THE DATA BEST, BUT I WILL SAY THAT IT'S PART OF THE DEVELOPMENT PROCESS IF YOU KNOW, AND IT'S FAIRLY RARE. IT'S FAIRLY RARE. BUT IF WE WHEN THERE IS REDEVELOPMENT OF A FORMER INDUSTRIAL SITE OR SITE AND A SITE THAT WE HAVE SIGNIFICANT CONCERNS THAT THERE MAY BE CROWNED WATER CONTAMINATION. AND THERE HAVE BEEN A FEW INSTANCES IN THE PAST WHERE WE'VE WE'VE TIED GROUNDWATER INVESTIGATIONS IN THE INTO THAT DEVELOPMENT TO EXPLORE AND SEE IF THERE IS CONTAMINATION. NOW, THAT'S TYPICALLY VERY RARE, BUT IN IN A FEW CASES THANK YOU. THANK YOU, MR MAYOR. VERY GOOD. ANY ADDITIONAL QUESTIONS. AND THANK YOU. YOU WERE. WHOEVER DECIDED TO HAVE HIM COME. PERFECT CREDIT . PLEASE PLEASE DO. THANK YOU, SIR. YOUR INFORMATION WAS WAS SPOT ON. THANK YOU. I GUESS AT THIS POINT YOU'RE LOOKING FOR DIRECTION TO CONTINUE THIS PROCESS FORWARD. I DON'T SEE ANY OPPOSITION TO THAT. SO PLEASE DO SO WHEN WILL WE SEE YOU AGAIN ON THIS TOPIC? AND WE ALL LOOK TO THE ATTORNEY. HMM. HMM. WE CAN COME BACK IN A MONTH. SOUNDS GOOD. WE'LL BE HERE. THANK YOU.

[01:30:08]

CANCEL ONE AND KIND OF KEEP PLUNGING ON HERE SO WE CAN GET THROUGH ONE MEETING SO WE CAN

[4d. Administrative Services Committee Report ]

GET TO THE NEXT ONE. THAT BRINGS US TO FOUR D ADMINISTRATIVE SERVICES COMMITTEE REPORT.

DEPUTY MAYOR PRO TEM SMITH. THANK YOU, MARY. NOW KEEP IT VERY SHORT. UH WE'RE JUST HERE TO TAKE ANY ADDITIONAL COMMENTS , SUGGESTIONS COMPLAINTS ON THE DRAFT ETHICS ORDINANCE THAT YOU SAW TWO WEEKS AGO WERE NOT PLANNING TO BRING THIS BACK AGAIN TO WORK SESSION UNTIL NOVEMBER FOR THE MAYOR'S REQUEST , BUT WE JUST WANTED TO GIVE EVERYBODY ANOTHER CHANCE TO AIR OUT. A FEW IDEAS DID GET SIGNIFICANT FEEDBACK FROM COUNCILOR WILLIAMS OVER THE LAST TWO WEEKS. I THINK WE'VE KIND OF FLESHED OUT HIS IDEAS AND GOT TO WORKING PROCESS THERE, SO WE'RE JUST HERE TO TAKE ANY ADDITIONAL COMMENTS. OKAY? I HAVE NO ONE IN THE QUEUE, SIR. OUTSTANDING.

THANK YOU, SIR. THANK YOU. AND AGAIN WE WILL BRING THIS BAG FOR CONSIDERATION THIS FALL IN NOVEMBER. ALL RIGHT. VERY GOOD. MOVING ON. THAT WAS OUR LAST VERBAL BRIEFING, MOVING ON TO

[5. Discuss Appointments to Boards and Commissions ]

ITEM FIVE, DISCUSSED APPOINTMENTS TO BOARDS AND COMMISSIONS TOMORROW NIGHT, COUNSELOR BEST YOU'VE GOT, UH, YOU'VE GOT SEVERAL. WE'LL CALL ON YOU TO BRING THOSE FORWARD.

[6. Announce Future Agenda Items ]

MOVING ON TO ITEM SIX. AND AS FUTURE AGENDA ITEMS ARE IS THERE ANYONE WHO HAS ANY FUTURE AGENDA ITEMS TO BRING UP THIS EVENING. I SEE NONE. AND THAT WILL MOVE US TO ITEM SEVEN COUNCIL MOVE

[7. Council will move into Executive Session ]

INTO EXECUTIVE SESSION OF THE CITY COUNCIL WILL ADJOURN INTO EXECUTIVE SESSION PURSUANT TO SECTIONS 551.72. POINT 087555. OF THE TEXAS GOVERNMENT CODE TO DELIBERATE OR DISCUSS ONE TO PURCHASE EXCHANGE LISA OR VALUE OF REAL PROPERTY IN THE VICINITY OF CENTERVILLE AND KINGSLEY. AND ATTORNEY CLIENT MATTERS CONCERNING PRIVILEGED AND UNPRIVILEGED CLIENT INFORMATION RELATED THE SAME AND TO ECONOMIC DEVELOPMENT MATTERS RELATED TO COMMERCIAL OR FINANCIAL INFORMATION THAT THE CITY HAS RECEIVED FROM ONE OR MORE BUSINESS PROSPECTS THAT THE CITY SEEKS TO HAVE LOCATE, STAY OR EXPAND IN OR NEAR THE TERRITORY OF THE CITY AND WITH WHICH THE CITY IS CONDUCTING ECONOMIC DEVELOPMENT NEGOTIATIONS. OR TO DELIBERATE THE OFFER OF FINANCIAL OR OTHER INCENTIVE INCENTIVE TO A BUSINESS PROSPECT AND ATTORNEY CLIENT MATTERS CONCERNING PRIVILEGES OR NON PRIVILEGED CLIENT INFORMATION RELATED TO THE SAME LET'S HAVE WILL TAKE A SMALL BREAK. LET'S HAVE EVERYBODY BACK AT 7 45,

* This transcript was compiled from uncorrected Closed Captioning.