[00:00:07]
          WELCOME TO THE JULY 6TH, 2026 WORK SESSION OF THE GARLAND CITY COUNCIL. I WANT TO LET EVERYONE KNOW THAT WE WILL BE PULLING ITEM NUMBER NINE TONIGHT. THAT DEVELOPMENT AGREEMENT FOR 505 CENTERVILLE MF, LLC. THEY'LL BE HEARD AT A LATER DATE. THE FIRST ITEM ON OUR AGENDA IS PUBLIC COMMENTS ON WORK SESSION ITEMS. MADAM SECRETARY, DO WE HAVE ANY SPEAKERS? EXCUSE ME. EXCUSE ME. CAN WE HAVE. MADAM SECRETARY, DO WE HAVE ANY SPEAKERS SIGNED UP FOR PUBLIC COMMENTS TONIGHT? YES, SIR. ITEM NUMBER TEN, JAMES COOK. ON. IS THAT OUR ONLY SPEAKER SIGNED UP FOR? YES. OKAY. I'D LIKE TO HAVE THAT, SPEAKER. WE WILL DO THE PRESENTATION AND THEN HAVE THE SPEAKER. AND THEN FOLLOWING THAT ITEM PRESENTATION. ALL 
          [ CONSIDER THE CONSENT AGENDA]
RIGHT. FIRST ITEM ON OUR AGENDA IS CONSIDERING THE CONSENT AGENDA FOR TOMORROW'S MEETING COUNCIL. I HAVEN'T HAD ANY REQUEST TO PULL ANY ITEMS. WE HAVE ABOUT 24 HOURS TO DO SO. 
          [1. Annual Performance Update on the City of Garland Housing Agency's 2025-2029 Five-Year Plan and Administrative Plan Approval]
NEXT ITEM ON OUR AGENDA IS WRITTEN BRIEFINGS. ITEM NUMBER ONE IS ANNUAL PERFORMANCE UPDATE ON THE CITY OF GARLAND HOUSING AGENCIES 2025 TO 2029. FIVE YEAR PLAN AND ADMINISTRATIVE PLAN APPROVAL. ITEM NUMBER TWO IS 2025. EDWARD BYRNE MEMORIAL JUSTICE 
          [2. 2025 Edward Byrne Memorial Justice Assistance Grant (JAG)]
          [3. TWDB - Grant Application - Firewheel Pump Station Project]
ASSISTANT GRANT. ITEM NUMBER THREE IS TWBD GRANT APPLICATION FIREWALL. PUMP STATION PROJECT. 
          [4. Resolution Approving a Jointly Owned Facility Exchange Transaction Between Oncor and the Texas Municipal Power Agency]
ITEM NUMBER FOUR IS RESOLUTION APPROVING A JOINTLY OWNED MUNICIPAL A JOINTLY OWNED FACILITY EXCHANGE TRANSACTION BETWEEN ENCORE AND THE TEXAS MUNICIPAL POWER AGENCY. AND 
          [5. Amendment to the Civil Service Classifications Ordinance for Police and Fire]
ITEM NUMBER FIVE IS AMENDMENT TO THE CIVIL SERVICE CLASSIFICATION ORDINANCE FOR POLICE AND FIRE. ALL RIGHT. SEEING NO QUESTIONS, WE'LL MOVE ON TO VERBAL BRIEFINGS. ITEM 
          [6. Interview for Appointment to the Texas Municipal Power Agency]
NUMBER SIX IS INTERVIEW FOR APPOINTMENT TO THE TEXAS MUNICIPAL POWER AGENCY. ALL RIGHT, MADAM. MADAM SECRETARY, WOULD YOU PLEASE CALL OUR FIRST APPLICANT? YES, SIR. TOM HANCOCK. SIR, PLEASE INTRODUCE YOURSELF AND TELL US WHY YOU'RE APPLYING TO THE BOARD. GOOD EVENING. MY NAME IS TOM HANCOCK. I'M THE DEPUTY GENERAL MANAGER OFOF GARLAND POWER AND LIGHT. IM HERE AS AN APPLICANT FOR THIS BOARD POSITION. I'VE BEEN WITH THE CITY FOR 16 YEARS. HAVING A CITY EMPLOYEE AS A MEMBER OF THE TMPA BOARD IS NOT UNPRECEDENTED. OBVIOUSLY, THERE'S THINGS THAT HAVE THE BUSINESS OF TAMPA'S KIND OF WOUND DOWN OVER THE YEARS. AND SO WE BASICALLY HAVE ONE MAJOR ITEM LEFT, AND THAT'S THE TRANSMISSION SYSTEM. AND TMPA IS CURRENTLY CONTINUING TO INVEST IN THE TRANSMISSION SYSTEM. AND GARLAND BEING 47% OWNERS OF THAT OBVIOUSLY ARE VERY INVOLVED. WE HAVE A CONSTRUCTION MAINTENANCE AGREEMENT WITH TMPA TO MANAGE THOSE ASSETS FOR THEM. AND ANYWAY, WE'LL CONTINUE TO TO MOVE IN THAT DIRECTION, INVEST IN TRANSMISSION AS LONG AS THE TRANSMISSION COST OF SERVICE RATE THAT TMPA EARNS IS, IS LARGER THAN WHAT GARLAND EARNS. BUT AT THE POINT IN TIME, IF THAT EVER HAPPENS WHERE THAT'S NOT THE CASE, THEN THE TRANSMISSION SYSTEM WOULD LIKELY BE SPLIT UP BETWEEN THE MEMBER CITIES SO THAT THEY CAN EARN A HIGHER RATE OF RETURN THAN TAMPA IS CURRENTLY EARNING. OBVIOUSLY, THAT'S IMPORTANT TO THE RATEPAYERS OF GARLAND. I'VE BEEN INVOLVED IN MANY OF THOSE ISSUES OVER THE YEARS, SO I HAVE THE HISTORY A JUST WANT TO MAKE SURE ONCE WE GET TO THAT POINT IN THE INTERIM, AS WELL AS JUST MAKING SURE THAT WE'RE MAKING PRUDENT DECISIONS AT TMPA. BUT THEN ULTIMATELY, IF THAT DOES HAPPEN, MAKING SURE THAT THE INVESTMENTS THAT GARLAND RATEPAYERS HAVE MADE OVER THE YEARS IN TMPA, THAT WE SEE THOSE ONCE THAT TRANSMISSION SYSTEM SPLIT UP. GOOD. COUNCIL. ANY QUESTIONS FOR THE APPLICANT? MAYOR PRO TEM TOM. THANK YOU. I WANT TO THANK YOU FOR YOUR YEARS OF SERVICE WITH GARLAND POWER AND LIGHT. I WAS CURIOUS IF. WHAT DO YOU SEE ARE THE BIGGEST OPPORTUNITIES OR RISKS FOR TAMPA? YOU TOUCHED ON SOME OF THE HIGHLIGHTS OF IT, BUT WHAT DO YOU WHAT DO YOU EXPECT THE LONG TERM IS GOING TO BE FOR IT? YEAH. YOU KNOW, AS I SAID, YOU KNOW, WE SHUT DOWN THE PLANT IN 2018. THAT WAS A A RISK THAT'S IN THE FINAL. THE ENTITY THAT WE SOLD THAT FACILITY TO IS IN THE FINAL STAGES OF, OF ASKING FOR CLOSUREROM THE T C, E, Q AND THEN OF COURSE, ALL THE MINE LAND HAS BEEN SOLD, THE LAND AROUND THE PLANT HAS BEEN 
          [00:05:01]
SOLD. AND SO REALLY THE MAIN THING LEFT IS THE TRANSMISSION SYSTEM. AND SO I DON'T KNOW THAT THERE'S A LOT OF RISK THERE. I THINK IT OBVIOUSLY, YOU KNOW, WE HAVE TO BE PRUDENT ABOUT INVESTING IN THAT TRANSMISSION, MAKING SURE THAT WE'RE NOT GETTING INTO SITUATIONS WHERE OUR RATE OF RETURN OR THE ASSETS THAT WE'RE INVESTING IN WOULDN'T BE RECOVERABLE UNDER THE PUC RULES. BUT OUTSIDE OF THAT, IT'S REALLY ABOUT IT'S IT'S REALLY ABOUT ECONOMICS. AT THE POINT, AS I MENTIONED EARLIER, IT'S ABOUT WHEN TAMPA'S RATE OF RETURN, HOW THAT COMPARES TO GARLAND'S RATE OF RETURN, WHICHEVER ONE OF THOSE IS HIGHER, THEN WE WOULD WANT TO CAPITALIZE ON THAT RATE OF RETURN FOR OUR RATEPAYERS. 
          THESE THESE POWER LINES, THEY WERE ORIGINALLY DEVELOPED FOR A COAL BURNING POWER PLANT THAT WE HAD BACK IN THE DAY. CORRECT? CORRECT. YES. THAT'S CORRECT. AND THEY AND ARE THEY? OKAY? WELL THANK YOU. THAT'S ALL THE QUESTIONS I HAVE. VERY GOOD. ANY OTHER QUESTIONS FOR THE CANDIDATE. COUNCILMEMBER TRENT? THANK YOU MAYOR. SO THANK YOU FOR YOUR YEARS OF SERVICE TO THE CITY OF GARLAND. ONE QUICK QUESTION. HOW WOULD YOU BALANCE THE GARLAND INTEREST WITH THE TAMPA REGIONAL OBLIGATIONS? YES. AND AGAIN, I THINK IT GOES BACK TO SOMETHING I'VE ALREADY TALKED ABOUT. IT'S WHATEVER'S BEST FOR THE GARLAND RATEPAYERS. AND CURRENTLY BASED ON THE THE MAJOR BUSINESS THAT'S LEFT IN TAMPA IS THE TRANSMISSION SYSTEM. IT'S GOING TO BOIL DOWN TO A RATE OF RETURN OF MATHEMATICAL CALCULATION. OF COURSE, THERE'S, YOU KNOW, OTHER THINGS INVOLVED, BUT ESSENTIALLY THAT'S THE CRUX OF THE ISSUE. AND AGAIN, WE'RE TAMPA'S EARNING MORE THAN GARLAND IS CURRENTLY. SO IT'S IN IT'S IN THE RIGHT PLACE. BUT AS THAT CHANGES OVER TIME, YOU KNOW, MY GOAL IS TO MAKE SURE THAT GARLAND RATEPAYERS, ALL THE ALL THE INVESTMENT AND MONEY THEY'VE PAID INTO TAMPA OVER THE YEARS IS REALIZED. 
          THANK YOU SIR. THANK YOU MAYOR. THANK YOU SIR. COUNCILMEMBER. MORE. THANK YOU, MR. MAYOR. TOM, YOU SAID IN THAT SEAT QUITE OFTEN DURING THE PAST SIX YEARS THAT I'VE SAID HERE, ADVISING US AND CARRYING US THROUGH TO ENSURE THAT WE HAVE GOTTEN THE VERY BEST OUT OF THE CITY OF YOUR SERVICES. THAT QUESTION TO YOU IS, AT THIS POINT, WHAT DO YOU SEE AS BEING PROBABLY THE MOST IMPORTANT THING THAT YOU WILL BRING TO TAMPA THAT MAYBE THEY DON'T HAVE? YEAH. MR. JEFFRIES AND MR. RATLIFF HAVE DONE A GREAT JOB OVER THE YEARS. YOU KNOW, PRIOR TO MY 16 YEARS HERE AT GARLAND, I WAS WITH BRYAN TEXAS UTILITIES, WHICH IS ALSO A MEMBER OWNER OF TAMPA. I WAS THERE FOR EIGHT YEARS AS WELL. SO, YOU KNOW, I HAVE A LOT OF EXPERIENCE WITH TAMPA. I KNOW THE HISTORY. I'M FAMILIAR WITH THE ISSUES THAT WE'VE DEALT WITH, WITH THE ISSUES THAT ARE GOING FORWARD. I HAVE A BROAD INDUSTRY KNOWLEDGE OF OF THE TRANSMISSION SYSTEM, THE MARKET IN GENERAL. I WAS SERVED ON THE BOARD OF DIRECTORS FOR A PERIOD OF TIME, AND I'M CURRENTLY THE MUNICIPAL SEGMENT REPRESENTATIVE FOR THE TEXAS ENERGY RELIABILITY COUNCIL, WHICH WAS A WHICH WAS A COMMITTEE CREATED BY THE LEGISLATURE AFTER WINTER STORM URI THAT BRINGS GAS AND POWER PEOPLE TOGETHER TO. TO HELP WITH THAT COORDINATION AND COME UP WITH IDEAS WHERE WE CAN MAKE THE GRID MORE RELIABLE. SO REALLY, IT'S JUST A LOT OF EXPERIENCE AND UNDERSTANDING OF THE MARKET AND BRINGING THAT, YOU KNOW, BRINGING THAT TO THE TABLE. THANK YOU, MR. CHAIR. THANK OPPORTUNITY. THANK YOU, MR. MAYOR. THANK YOU SIR. ANY OTHER QUESTIONS? THANK YOU SIR. THANK YOU ALL VERY MUCH. MADAM SECRETARY, WOULD YOU PLEASE CALL OUR NEXT APPLICANT, JOSEPH DERRICK. JULIUS JENKINS. THANK YOU. INTRODUCE YOURSELF AND TELL US WHY YOU WANT TO SERVE ON THIS BOARD. THANK YOU. GOOOOD EVENING, EVERYONE, AND THANK YOU FOR THE OPPORTUNITY TO SPEAK WITH YOU. GOOD EVENING MAYOR COUNCIL MEMBERS. MY NAME IS JULIUS JENKINS. I'M A MUNICIPAL ATTORNEY FOR THE CITY OF DALLAS, WHERE I LITIGATE CLAIMS AGAINST NUISANCE PROPERTY OWNERS. I'M ALSO GARLAND PROUD GARLAND, RESIDENT OF DISTRICT TWO. I'VE BEEN LIVING IN THAT DISTRICT, EXCUSE ME, FOR TEN YEARS. DURING THAT TIME, I'VE SERVED ON MY HOA. I'VE SERVED AS A BOARD MEMBER FOR NOW HOPE CLINIC, AND I'VE HAD AN OPPORTUNITY TO SERVE AS A GARLAND ZONING COMMISSIONER. I AM INTERESTED IN SERVING THE BOARD FOR ONE REASON AND ONE REASON ONLY TO BE OF SERVICE AND TO LEARN EVERYTHING THAT I POSSIBLY CAN ABOUT WHAT IT MEANS TO BE A RESIDENT OF THE CITY OF GARLAND. IN EFFECT, I UNDERSTAND THAT THE TEAM WAS CREATED OUT OF A SETTLEMENT AGREEMENT, OUT OF A CONFLICT BETWEEN DIFFERENT MUNICIPALITIES RELATING TO THE SUPPLY OF POWER. I RECOGNIZE THAT YOU'VE ALL HAD SOME OUTSTANDING LEADERS IN THE POSITION BEFORE, SO MY 
          [00:10:01]
OBLIGATION AND DUTY WOULD BE TO LEARN EVERYTHING THAT I POSSIBLY CAN TO PROTECT WHAT I SEE TO BE OUR GARLAND'S BIGGEST ASSET AT THIS POINT, WHICH IS GPNL AND OF COURSE, ITS RESIDENTS. THANK YOU. ANY QUESTIONS FOR THE APPLICANT? COUNCIL MEMBER. THOMAS. THIS DISCLOSURE. JULIUS AND I WERE CLASSMATES IN LEADERSHIP. GARLAND FOR THE BEST CLASS. 
          THANK YOU SIR. I WAS WAITING FOR THAT. YOU KNOW THAT IN THE. SO YOU HAVE SERVED ON SOME BOARDS AND COMMISSIONS. THAT'S MY USUAL QUESTION. SO I'LL SKIP DOWN TO ONE THEY'VE GIVEN US. 
          SO IT'S UNDERGONE SOME TRANSITION IN RECENT YEARS. SO HOW DO YOU WHAT DO YOU SEE ABOUT STRATEGIC PLANNING FOR THE AGENCY'S FUTURE? I HEAR THAT THE AGENCY IS WINDING DOWN. 
          WHAT I'M CONCERNED ABOUT IS WHEN YOU LOOK AT THE BUDGET STATEMENTS AS REPORTERS, YOU SEE UNACCOUNTED UNANTICIPATED COSTS REGARDING THE TRANSMISSION LINES AND THEIR MAINTENANCE. I BELIEVE THAT MORE QUESTIONS ARE NECESSARY REGARDING THAT, WHETHER OR NOT IT WOULD BE. REASONABLE, CONSIDERING THE CONFLICT THAT OCCURRED PREVIOUSLY, TO HAVE THE AGENCY IN A POSITION WHERE IT IS WINDING DOWN AND NO LONGER SERVING THE INTERESTS OF THE REGION, AS OPPOSED TO RELIANCE UPON INDIVIDUAL MUNICIPALITIES AND THEIR OWN IN IN ENERGY GENERATION. SO I BELIEVE THAT, AGAIN, QUESTIONING OPEN MINDS, LEARNING MORE ABOUT THE PROCESSES IS PROBABLY A GOOD IDEA AT THIS POINT. OKAY, GOOD GOOD. GOOD ANSWER. THANK YOU SIR. THANK YOU MAYOR. THANK YOU SIR. COUNCIL MEMBER MOORE HERE. 
          SEE YOU JULIUS. I ALSO WANT TO JUST ECHO. THANK YOU. OUTSTANDING JOB AS IT RELATES TO THE PLANNING COMMISSION. I DO HAVE A QUESTION. YOU DO KNOW THAT SO MUCH TODAY IS BEING WORKED OUT IN THE SOCIAL MEDIA ARENA. OKAY. HOW DO YOU HANDLE PUBLIC FEEDBACK OR CONCERNS, ESPECIALLY WHEN TECHNICAL TOPICS LIKE POWER GENERATION MAY BE DIFFICULT TO RESIDENTS UNDERSTAND? IF WE'RE NOT SPEAKING TO PEOPLE, IF WE'RE NOT EDUCATING THEM AND GIVING THEM THE THE WHAT'S WHAT, THEN WE CAN ANTICIPATE SOME DIFFICULT QUESTIONS FROM THEM. 
          I THINK IT BEHOOVES US TO MAKE SURE THAT WE'RE COMMUNICATING ADEQUATELY WITH EACH OTHER AND MAKING SURE THAT WE ARE ON THE SAME PAGE, AND THEN MAKING SURE THAT WE DO THE BEST THAT WE CAN TO ADVOCATE FOR OUR CAUSES. AGAIN, QUESTIONS, MAKING SURE THAT THOSE QUESTIONS, BEING A PUBLIC AGENCY, ALL THAT INFORMATION IS PUBLIC. SO MAKING SURE, MAKING CERTAIN THAT THAT INFORMATION IS PROVIDED AHEAD OF TIME. AND AGAIN, YOU CAN'T ANTICIPATE IT ALL, NOR DO I ANTICIPATE THAT WE SHOULD, BUT BE PREPARED TO BE HONEST AND TRANSPARENT AND AUTHENTIC WHEN WE CAN. AND I HOPE THAT ADDRESSES YOUR QUESTION. AUTHENTICITY. SIR, ANY OTHER QUESTIONS FOR THE APPLICANT COUNCIL? THANK YOU VERY MUCH, SIR. THANK YOU VERY MUCH. THANK YOU. MADAM SECRETARARY, WOULD YOU PLEASE GIVE ONE MORE CALL FOR THE PREVIOUS APPLICANT? YES, SIR. JOSEPH. DEREK. ALL RIGHT. I DID NOT SEE HIM HERE. COUNCIL. 
          TOMORROW WE WILL BE MAKING THIS APPOINTMENT DURING OUR REGULAR SESSION. ALL RIGHT. WITH THE 
          [7. Garland Chamber of Commerce 2026 Mid-Year Report]
INTERVIEWS CONCLUDED, WE'LL MOVE ON NOW TO ITEM NUMBER SEVEN, WHICH IS GARLAND CHAMBER OF COMMERCE 2026 MIDYEAR REPORT. THANK YOU. AS SO MANY PEOPLE FOR SO MANY YEARS TAKING SUCH GOOD CARE OF. BUSINESSES. I AM GRATEFUL AND I ACKNOWLEDGE IT. THANK YOU, THANK YOU. THANK ALL OF YOU. THOSE OF YOU THAT HAVE BEEN ON THE COUNCIL FOR A LITTLE BIT ARE USED TO SEEING YOURSELF UP HERE AT THIS JUNCTURE AND THEN ONE AT THE END OF THE YEAR TO UPDATE YOU ON OUR RESULTS TO DATE, BASED ON THE CONTRACT WE HAVE FOR ECONOMIC DEVELOPMENT, I HAVE SOME SPECIAL GUESTS, GOOD SELECTION OF OUR LEADERSHIP FROM THE CHAMBER. I'D LIKE TO INTRODUCE, IF THAT'S OKAY WITH YOU GUYS. SEAN CASS, IF YOU'LL STAND UP. HE'S CHAIRMAN OF THE CHAMBER. BE NICE TO SEAN. I AM, BECAUSE HE'S DOING IT FOR THE SECOND YEAR. HE'S HOPEFULLY ROSCOE, WHO COULDN'T BE HERE TONIGHT, WILL SUCCEED HIM. SO. NISHA WILLIAMS, ANISHA. 
          BUSINESS OWNER AS POSTAL. IF YOU WANT TO TALK SMALL BUSINESS, TALK TO NISHA. SHE'S BELIEVER. 
          I THINK SHE CAPTURED MY PRESENTATION. SHE WAS WORRIED ABOUT GETTING INVOLVED WITH. 
          [00:15:01]
SHE REPRESENTS US. SHE'S ON THE BOARD AND REPRESENTS OUR SMALL BUSINESS. RUSSELL DUCKWORTH'S THE BANKER, SECOND GENERATION BANKER, LONG TIME GARLAND PERSON, IS OUR TREASURER. AND FROM PAST CHAIR OF THE CHAMBER, SECOND THIRD GENERATION MANUFACTURER. THE SECOND GENERATION. OKAY, FUTURE CONSULTING DOES FRACTIONAL WORK, SO IT'S IMPORTANT TO KNOW THAT WHILE YOU SEE KARINA AND I, THIS IS LEADERSHIP OF THE CHAMBER. THIS IS WHO I WORK FOR. 
          THIS IS WHO REALLY MAKES THE DECISIONS. SO I THOUGHT IT WAS IMPORTANT TO BE HERE TONIGHT, TO LISTEN AND FOR YOU TO GET TO KNOW THEM. YOU KNOW, IT OCCURRED TO ME WHEN I WAS READY FOR THIS, THAT SOME OF YOU RECOGNIZE THE WHAT WHAT WE'RE DOING AND WHAT THE CONTRACT SAYS. SOME OF YOU WILL NOT SOME OF YOU THAT ARE BRAND NEW. AND I RECOGNIZE THAT WE'RE LIMITED TO OUR CONVERSATIONS BASED ON PEOPLE'S AGENDA. BUT I INVITE YOU AND WE'LL SET UP A TIME. 
          THIS HISTORY OF OUR RELATIONSHIP GOES BACK LITERALLY 141 YEARS BACK TO THE STARTING OF COMMERCIAL CLUB IN 1885. MOST, MOST SIGNIFICANTLY, SINCE 95, WHEN THE OWNERSHIP. 
          SO WE HAVE A LONG HISTORY AND YOU MIGHT QUESTION YOURSELF WHY A CHAMBER OF COMMERCE. THIS IS UNIQUE, THIS RELATIONSHIP UNIQUE. THERE'S ONLY TWO CHAMBERS IN THE CITY HALL IN. 
          AND IRVING TO HAVE THIS CONVERSATION. SO WOULD YOU ASK US TO DO WE TAKE VERY SERIOUSLY. 
          AND THAT'S WHAT TONIGHT'S ALL ABOUT TALKING ABOUT THE PARTNERSHIP CONTRACT. 2023. THE CITY, UNDER JUDD'S LEADERSHIP AND MYSELF AND THE CHAMBER CONDUCTED AN ECONOMIC DEVELOPMENT STRATEGIC, WHICH BASICALLY BECAMEE DECISION ABOUT THE DIVISION OF LABOR BETWEEN WHAT THE CITY DOES AND WHAT THE AND 4000 FOOT TERMS. THE CITY IS RESPONSIBLE FOR ATTRACTION. 
          THE CITY IS RESPONSIBLE FOR REDEVELOPMENT, IS RESPONSIBLE FOR ANY KIND OF INTERFACE WITH DEPARTMENTS. RESPONSIBILITY IS IN THESE THREE AREAS. BUSINESS RETENTION, WHICH IS FOCUSED ON OUR MAJOR TAXPAYERS. A SIGNIFICANT PIECE OF. OUR WORKFORCE, WHICH. WHAT THESE COMPANIES NEED. AND THEN THE. THAT'S ALL CATEGORY WITH SMALL BUSINESS. AND SO FORT WILL FOCUS ON EFFORTS IN THESE THREE AREAS. BUSINESS RETENTION. THANK YOU, MAYOR, FOR YOUR NEWSLETTER. WE WENT THROUGH EACH OF THESE COMPANIES. THESE ARE. OUR CONTRACT SAYS MINIMUM OF 30 VISITS A YEAR. THIS REPRESENTS 17 VISITS IN THE FIRST HALF OF THE YEAR. THE COMPANIES AND THESE ARE THE RESULTS. THIS IS WHAT COMPANIES ARE SAYING. AND IF YOU LOOK AT THIS, YOU'LL SEE OPERATIONAL AND BUSINESS CHALLENGES. A LOT OF EMPHASIS ON. WE'LL TALK ABOUT THE EVOLUTION OF MANUFACTURING, IN PARTICULAR, ITS AUTOMATION. IT'S ELEVATING PEOPLE'S SKILLS, LEADERSHIP DEVELOPMENT. SMATTERING OF COSTS, TARIFFS KIND OF COME AND GO IN THE CONVERSATIONS, SUPPLY CHAIN DISRUPTIONS. I DON'T HEAR NEARLY AS MUCH OF THAT AS WE DID EARLY ON IN THE YEAR. A LOT OF EXPANSION, WHICH IS GOOD NEWS FOR US BECAUSE WHAT'S EXPANSION HAPPENS IN TWO WAYS. PHYSICAL PLANT ANDERSON WINDOWS JUST WENT THROUGH AN EXPANSION WHERE THEY MOVED WALLS, AND A LOT OF IT IS INTERNAL WITH EXPANSION OF THE AUTOMATION. 
          THIS IS PERSONAL PROPERTY, WHICH IS THAT HIDDEN PIECE OF THE VALUE, THE VALUE THAT WE SEE AND WE IDENTIFY THESE COMPANIES ARE. ON TAXES, BUSINESS, PERSONAL PROPERTY TAXES ACTUALLY FOR UTILITIES, EMPLOYMENT. SO ALL THAT TOGETHER MAKES THIS THE FOCUS, THE REASON FOR THE FOCUS. YOU'LL SEE AUTOMATION AND AI INTEGRATION REQUIRING CAPITAL INVESTMENTS. YOU'LL SEE THAT SIGNIFICANTLY REALLY ACROSS THE BOARD. WORKFORCE SKILLS AND GETTING SKILLS. AND THIS IS WE TALK ABOUT THE WORKFORCE SECTION AND OUR RELATIONSHIP WITH. DARLINGTON COLLEGE AND FOCUSING ON. CONNECTING WITH SKILLS WELDERS. IN PARTICULAR, DOUBLE THEIR PRODUCTION OF RIGS. THEY NEED WELDERS. SOON TO THE SOUTH CAROLINA CLASS. AND THEY A CLASS OF ABOUT 20 FEMALE WELDERS COMING ON LINE FOR EPIROC. SO MAKING OSE 
          [00:20:06]
CONNECTIONS, IT'S ABOUT AGING WORKFORCE AND SUCCESSION PLANNING CONCERNS. THIS IS WHERE. AND WE'LL TALK ABOUT THIS SESSION, A LOT OF EMPHASIS ON LEADERSHIP TRAINING PEOPLE THAT ARE TECHNICIANS ONE DAY AND GETTING MOVED TO SUPERVISORS THE NEXT, DIFFERENT SET OF SKILLS. AND SO WE SPENT A LOT OF TIME IN THAT AREA. CAN YOU HEAR THIS REPEATED RECENT DEMAND FOR AUTOMATION, ROBOTICS, AI SKILL SETS. THAT'S THE FUTURE OF MANUFACTURING. AND THAT'S REALLY MUCH LIKE WITH THE FOLKS WE MEET WITH RETENTION, WORKFORCE RELIABILITY ISSUES ACROSS MANUFACTURING. THE HIRING PRESS IS CALMED DOWN QUITE A BIT. BUT IT WAS IT WAS PANIC. THERE WERE ALL KINDS OF CRAZY BONUSES BEING PAID AND. I HAVE TO GET UP TO 1500 1800 EMPLOYEES. CALM DOWN THERE ABOUT 1200 RIGHT NOW. AND THEY'RE GETTING MORE OUT OF AUTOMATION ROBOTS IN THAT REPLACES NEED REPLACING ANYBODY BUT THE REPLACEMENTS. YOU HAVE YOUR RECRUITING. SO THE AREAS FOR SUPPORT WORKFORCE TRAINING, CONSTRUCTION UTILITY RELIABILITY IMPROVEMENTS. PERIODICALLY YOU'LL HEAR THINGS LIKE INFRASTRUCTURE, WINDOWS. 
          THEY HAVE TRUCKS WITH WHOLE TRAILER FULL OF WINDOWS. IF THERE'S POTHOLES IN THE STREETS, IT'S NOT GOOD FOR WINDOWS. FORTUNATELY, THE CITY OF GARLAND. SAW THAT, AND THAT'S. 
          SO THOSE ARE THE KINDS OF THINGS THAT COME AND GO QUICKLY. EVERYTHING IS IS TRAILER PARKING IN FRONT OF BUSINESSES THAT YOUR TRANSPORTATION DEPARTMENT IS REALLY KEEN ON. 
          WITH Y'ALL'S HELP TO MITIGATE THAT. SO. THAT'S REALLY THE HIGHLIGHTS. QUESTIONS CAN COME ANY TIME, MAYOR, BUT I DON'T SEE ANYONE YET. YOU'RE DOING A GREAT JOB. SOME AUDIENCE PARTICIPATION SAID I'M IN TROUBLE. SO I MEAN, I'M JUST SAYING, SPEAKING TO THE MICROPHONE. OKAY. THANK YOU. OBVIOUSLY, THE BIG ISSUE WITH RETENTION AND EXPANSION OF BUSINESSES IS AROUND PEOPLE. THAT'S CHANGING ON A CONSTANT BASIS, A DAILY BASIS. YOU SEE, CRAFT THAT STARTED HERE IN 1949 WAS BASICALLY DOING IT BY HAND, STACKING PALLETS. TODAY. YOU GOT ROBERTS PUTTING CHEESE, INTELLECTUALS FLAT TRAYS, AND YOU'VE GOT ROBOTS PACKAGING SO THAT THE NEED FOR PEOPLE THAT CAN PROGRAM AND MAINTAIN AUTOMATION, IT'S A DIFFERENT SET OF SKILLS. GOOD THING FOR US FOR FOR EMPLOYMENT SIDE IS THOSE JOBS PAY MORE. AND THAT'S WHAT I THINK IS, IS THE REAL ESSENCE OF ECONOMIC DEVELOPMENT, GETTING PEOPLE A WAGE THAT SUPPORTS THE LIFE THAT THEY WANT. AND SO THAT'S, THAT'S WHAT WORKFORCE IS ABOUT, FOCUSING ON 3 OR 4 AREAS. FAME IS THE FEDERATION OF ADVANCED MANUFACTURING EDUCATION. TOYOTA STARTED ABOUT 20 YEARS AGO. IT TURNS OUT ADVANCED MANUFACTURING TECHNICIANS, EMTS. 
          AFTER A TWO YEAR PROGRAM TO EARN LEARN. YOU WORK THREE DAYS A WEEK, YOU GO TO RICHLAND COLLEGE TWO DAYS A WEEK, GET YOUR SKILLS AND SAFETY AND LEAN. AT THE END OF TWO YEARS, OR ACTUALLY FIVE AND A HALF, YOU'RE CERTIFIED. YOU HAVE SUCH A DEGREE AND YOU'RE CAPABLE OF MAINTAINING AND PROGRAMING. SO FAMOUS PROGRAM THAT'S SELECTED LEADERSHIP ACADEMY, I ALLUDED TO THAT. THAT'S PROBABLY OUR MOST POPULAR CLASS RIGHT NOW. WE HAVE A WHOLE LOT OF TECHNICIANS THAT ARE NOW BEING PROMOTED TO SUPERVISORS, BE THE BEST TECHNICIANS WORLD THAT Y BECOME A SUPERVISOR THE NEXT DAY. AND UNLESS YOU UNDERSTAND CONFLICT RESOLUTION AND COMMUNICATION AND ALL KINDS OF OTHER SKILLS. SO WE HAVE A TREMENDOUS INSTRUCTOR THAT'S OUR MOST POPULAR. WE HAVE A BASIC CLASS, AND ADVANCED CLASS GOES UP SPEEDILY. HR FORUM. 
          LISTENING TO OUR CUSTOMERS IS IS TIME WITH US. WE HAVE AN HR GROUP, MAJOR COMPANY THAT'S INFORMED AS TO DAY TO DAY WHAT THEY NEED AND FULFILLING THOSE NEEDS. RESOURCE EXPO IS ONE OF TWO PROGRAMS WE DO ANNUALLY. THE OTHER IS DAY. THE RESOURCE EXPO BRINGS RESOURCES TO THESE COMPANIES. HELPING FOLKS GROW COMPANIES GROW. STARTED THE MANUFACTURERS ASSOCIATION IN 2006. WE HAD MAYBE 5 OR 6 COMPANIES AT THAT TIME. TODAY IT'S UPWARDS OF 70, 70, 80 OUT 
          [00:25:05]
OF THE 300 THAT WE HAVE IN GARLAND, THAT'S A REFLECTION OF. THE WORD THAT COMES TO MIND IS DIFFICULT. CHALLENGE IT IS, IS TO GET MANUFACTURERS WHO ARE INDEPENDENT ASK FOR HELP AND SUPPORT. BRINGING RESOURCES TO THEM IS SOMETHING THAT WE TAKE THE MOUNTAIN TO. MOHAMMED. 
          SMALL BUSINESS. WE CAN SPEND A LOT OF TIME ON SMALL BUSINESS. YOU SEE JEFF AND KEISHA, NISHA AND CESAR, OUR SMALL BUSINESS STAFF PERSON. 5000 BUSINESSES, 99.9% OF THEM ARE SMALL. US GOVERNMENT SAYS ANYTHING UNDER 500 EMPLOYEES IS SMALL BUSINESS. FOR US, IT'S THRIVING. THERE'S A WHOLE LOT OF THOSE FOLKS. FOR YEARS, WE'VE DONE PROGRAMS, WE'VE DONE WORKSHOPS, AND WE'VE WON. WE'VE ONLINE PROGRAMS. I THINK IT'S RELATED TO HOT SHOWER. YOU COME TO A SEMINAR, YOU GET MOTIVATED, THEN YOU GO AWAY AND YOU GET STUCK AGAIN. AND, AND MOVE INTO ROUNDTABLES, WHICH IS AN ONGOING MONTHLY PEER DRIVEN EXERCISE TO GET PEOPLE THE SKILLS THAT THEY NEED. IF YOU EVER WANT A UNBIASED AND UNREFRESHED ACTION TO THAT. YOU CAN LOOK AHEAD. 
          AMEN. AS PART OF OUR SMALL BUSINESS, WHICH STARTED A YEAR AGO, REALIZED THAT THERE'S A WHOLE LOT OF BUSINESSES THAT ARE SPANISH SPEAKING. SO WE STARTED THE HISPANIC BUSINESS ASSOCIATION WITH A GREAT SUCCESS, COMPANIES THAT ARE COMING IN AND ASKING THEM TO BE CHAMBER MEMBERS, STARTUPS, LANGUAGE SPECIFIC, AND AND CESAR ARE BOTH BILINGUAL. AND THIS WAS THE COMMITTEE THAT'S DOING THAT. IT'S MOVING FROM WORKSHOPS TO ROUNDTABLES WITH THAT GROUP. YOU READ ABOUT STRATEGIC SIDE OF IT. YOU TALK ABOUT PEER DRIVEN. YOU HAVE 8 TO 10% NON-COMPETING SITTING IN A ROOM ON A REGULAR BASIS. SO THAT'S. HERE'S MORE, HERE'S THE PARTICIPANTS IN THE ROUNDTABLE SINCE. I'M IN BUSINESS CHALLENGES, MARKETING STRATEGIES, BUSINESS PLANNING, CUSTOMER RETENTION. CESAR IS EXCELLENT ABOUT GETTING. 
          SPECIFIC EXAMPLES AND BRINGING IN SPECIFIC ANSWERS. SO THAT'S, THAT'S PEER DRIVEN. ROUNDTABLE THEMSELVES. DICTATE WHAT THEY DEAL WITH. IT'S MEASURED. WE ADDED ANOTHER LAYER OF ACCOUNTABILITY SCALE. ONE ON THE SCALE MEANS WE KNOW WHO YOU ARE. WE KNOW YOUR NAME. IF YOU'RE TWO ON THE SCALE, THAT MEANS THAT YOU'VE ATTENDED A WORKSHOP AND WE KNOW A LITTLE BIT MORE ABOUT YOU. IF YOU'RE THREE ON THE SCALE AND YOU'RE PART OF A ROUNDTABLE, FOUR AND FIVE ARE MEMBERS. WE REALLY GET YOUR FINANCIALS, WE REALLY GET YOUR BUSINESS, WE REALLY GET YOU. AND SO THE GOAL IS TO MOVE PEOPLE FROM 1 TO 5, AND WE GRADE EFFORT ON THAT WHOLE WHOLE SPECTRUM. AND SO IT'S THE WORD I LIKE TO USE A LOT, REGARDLESS OF WHAT WE DO, IS INTENTIONALITY WITH SPECIFIC REASONS. THAT'S CATCHING. AND REQUIRES A HIGHER LEVEL OF COMMITMENT FROM PEOPLE. THAT'S HOW YOU KNOW THEY'RE SERIOUS. THE WORKSHOP, YOU NEVER SEE THEM AGAIN. YOU HOPE THEY HAVE SUCCESS. IF THEY'RE A PART OF A ROUNDTABLE AND MOVING UP THAT SCALE, YOU'RE GUARANTEED THEY'RE GOING TO BE SUCCESS. WE TRY TO SPREAD THE MEMBERSHIP AND THE COUNCIL DISTRICT JUST TALKS ABOUT WHO WE TALK TO, WHICH COUNCIL DISTRICT THEY'RE IN. SO WE'RE SPREADING THE WORD. I HAD A QUESTION FROM AN ABOUT DISTRICT ONE. I KNOW HE'S SEIZURES, BUT CERTAINLY IF YOU'VE GOT PEOPLE THAT THEY'RE INTERESTED OR WOULD ALL BENEFIT FROM THIS, SEND THEM MY WAY. SUPPORT THINGS THAT YOU EXPECT. FACADE IMPROVEMENTS, RELOCATION OPPORTUNITIES, OPPORTUNITIES, INITIATIVES, AND SO ON. THOSE ARE THE THREE AREAS THAT ARE COVERED BY THE CONTRACT. CHAMBER DOES A WHOLE LOT OF THINGS THAT AREN'T REALLY 
          [00:30:05]
DEFINED BY THIS CONTRACT. AND WE HAVE SAID 141 YEARS, WHICH ARE IN THE COMMUNITY DEVELOPMENT, LEADERSHIP DEVELOPMENT, BEST CLASSES. I LOVE YOU. YES. LEADERSHIP DEVELOPMENT, WHICH PAYS DIVIDENDS. AS YOU CAN SEE AROUND THIS TABLE, THE WOMEN'S GROUP, THE SMALL BUSINESS GROUP, A LOT OF OUTREACH. WE GOT RID OF A MEMBERSHIP DIRECTOR A COUPLE OF YEARS AGO. AND THAT PERSON WITH AN ENGAGEMENT, RONNIE'S JOB IS TO MAKE SURE THAT WE'RE NOT OUT THERE SEEKING MEMBERSHIPS, MAKING SURE THAT PEOPLE ARE CONNECTED TO THE RESULTS. AND SO. LEADERSHIP, GARLAND AND THE CANDIDATES SOCIAL MEDIA CAMPAIGN, HERE ARE SOME OF OUR RIBBON CUTTINGS. AND THANK ALL OF YOU WHO ARE ABLE TO PARTICIPATE A LOT WHEN THE NEW BUSINESS COMES TO TOWN. SEE LEADERSHIP THERE AND WELCOME IN. 
          THAT'S WHERE THE RELATIONSHIHIP. SOME STRATEGIC PARTNERSHIPS CONNECT THE LARGEST. PROBABLY AROUND NORTH TEXAS. WE GET ANYWHERE FROM 80 TO 100 PLUS. I THINK THE AVERAGE 92. THAT'S HUGE. ONCE IT'S INTENTIONAL TABLES AND YOU MAKE THE ROUNDS AND YOU TALK TO EVERYBODY IN THAT ROOM JUST FOR A MINUTE, THAT'S AGAIN, RELATIONSHIP BUILDING STATE OF THE CITY. 
          ANOTHER PART OF THAT, ALL OF THAT. I MEAN, THAT'S THE STATE OF THE CITY, STATE OF THE ART WOMEN'S BUSINESS INITIATIVE. YOU KNOW, LISA, SHE RUNS A GREAT WOMAN, FAME, GRADUATION. 
          LEADERSHIP. GARLAND. ONE HALF A SECOND OFF OF SCRIPT LEADERSHIP PROGRAMS WITH CHAMBERS IN DENVER AND SAN ANTONIO AND CHAMBERS ALL AROUND. ONE OF THE COMMON PROGRAMS IN ALL THESE CHAMBERS IS LEADERSHIP PROGRAMS. IT WAS DESIGNED YEARS AGO, IN OUR CASE, 45 YEARS AGO, WHEN THE CHAMBER LEADERSHIP LOOKED LIKE ME MALE, THE MALE STAFF, OLD WHITE GUYS. AND SO BY DESIGN, THESE PROGRAMS CAME INTO BEING TO, TO REFLECT THE COMMUNITY. YOU KNOW, I RECOGNIZED WHEN I WAS AT THE HOUSTON CHAMBER AS BIG AS HOUSTON, BRINGING PEOPLE THAT WOULD NEVER THINK ABOUT LEADERSHIP POSITION, RECRUITING THEM. THAT'S WHAT IT'S BEEN ALL ABOUT, GRATIFYING RESULTS OF PEOPLE THAT ASCEN TO THE SERVICE OF ALL. AND SO THANK ALL OF YOU FOR THAT. WE CHANGED OUR. CANDIDATE CAMPAIGN FROM. SEVERAL YEARS AGO. IT WAS TO A AN EVENT HALL. AND HAVE YOU ALL SIT UP THERE WITH MAYBE AN AUDIENCE. WE STARTED DOING THE VIDEOS. YOU CAN SEE 10,000 SOCIAL MEDIA IMPRESSIONS, GIVES PEOPLE THE REAL OPPORTUNITY TO GET TO KNOW YOU. AND SO THAT THAT WAS A MAJOR CHANGE. AND I WOULD BE REMISS, I AM REMISS IF I DIDN'T RECOGNIZE THE MOST IMPORTANT PERSON IN THIS ROOM, CARINA OLIVARES, WHO'S THE MASTERMIND BEHIND THIS, HAS BEEN MY PARTNER FOR 32 YEARS AT THE CHAMBER. AND THE REASON I'M SITTING UP HERE TODAY IS BECAUSE YOU SAW THE DALLAS MORNING NEWS SATURDAY, I THINK SATURDAY. KARINA WAS SHE AND JIMMY TRAN WERE RECOGNIZED AS PEOPLE WHO DIDN'T START OUT IN THIS COUNTRY, BUT GOT HERE AS QUICK AS THEY COULD. AND SO IT'S HEARTWARMING TO UNDERSTAND THEIR JOURNEY. THANK YOU. CARINA. HOW DID I DO? SHE TIMES ME AND IN YEARS PAST SHE SITS UP HERE AND AND I HAD TO START WEARING SHIN GUARDS BECAUSE, YOU KNOW, IF I WOULD IF I WOULD BE GOING OVERTIME. BUT THANK YOU. THANK YOU FOR THE OPPORTUNITY TO SERVE. ANY QUESTIONS? I DO HAVE A FEW QUESTIONS. COUNCILMEMBER LOOKED. I SO WE DESCRIBE WHAT FAME IS. 
          I'M NOT FAMILIAR WITH THAT PROGRAM. FEDERATION OF ADVANCED MANUFACTURING EDUCATION 20 YEARS AGO. TOYOTA AS A COMPANY, YOU UNDERSTAND AN AUTOMOTIVE PLANT. WE VISITED THE ONE IN SAN ANTONIO, 7000 EMPLOYEES PUTS A TRUCK OUT EVERY 54 SECONDS. SO THE CRITICAL NATURE OF THAT ENTERPRISE IS KEEPING THAT LINE RUNNING. SO THE PROGRAM IS A TWO YEAR PROGRAM. 
          [00:35:06]
FOR THE PROGRAM. YOU ENGAGE WITH AN EDUCATION PARTNER. IN THIS CASE, WE ENGAGE WITH DALLAS COLLEGE AND YOU PROGRAM. SO WORK THREE DAYS A WEEK FOR THE COMPANY AND BEYOND TWO YEARS. HERE, THERE'S A WEEK YOU'RE WORKING TWO DAYS A WEEK YOU'RE IN A CLASSROOM. YES. 
          CURRICULUM IS A LOT MORE THAN JUST THE TECHNICAL SKILLS BECAUSE YOU'RE TALKING ABOUT ALL THE THINGS THAT ARE NECESSARY FOR PLCS, FLUID POWER TO. KEEP THE LINE RUNNING. BUT BEYOND THAT, TOYOTA SAID, WE HAVE WE NEED TO HAVE THE ATTITUDES. SO THEY TEACH COMMUNICATION, THEY TEACH SAFETY, THEY TEACH LEAN, THEY TEACHH CURIOSITY. THEY TEACH HOW TO A WELL-ROUNDED PERSON. SO WHEN YOU COME OUT OF THAT PROGRAM AFTER TWO YEARS, YOU'VE GOT AN ASSOCIATE'S DEGREE. YOU'RE HALFWAY TO AN ENGINEERING DEGREE. MORE THAN THAT, YOU'RE CERTIFIED AND ALMOST LIKE TO WORK. YOU'VE BEEN YOU'VE BEEN ON THE JOB TRAINING A WEEK. SO IT'S EXPANDED TO, I THINK, THREE, 44, 45 CHAPTERS AROUND THE COUNTRY. 
          WE'VE HAD THE CHAPTER HERE FOR ABOUT FOUR YEARS. SO IT'S THE CHAMBER ISN'T LEADING THAT PROGRAM. IT'S THROUGH TOYOTA. I'M SORRY, TOYOTA STARTED IT. OKAY. AND THEN THE, THE, THE LEADERSHIP AT THE TIME THAT TOYOTA HAD, IT WAS IN EACH OF THEIR WINS. SO THEY HAD A COMMITTEE OF PEOPLE WORKING FOR TOYOTA. SINCE THEN, THEY'VE GONE TO THE LEADERSHIP FROM THE PROGRAM, THE WHOLE PROGRAM OVER TO THE NATIONAL ASSOCIATION OF MANUFACTURERS. YOU BUILT A CHAPTER. WE MANAGED THE DALLAS CHAPTER. SO IT'S OUR IT'S OUR CHAPTER THAT WE HAVE LEADERSHIP, WE RECRUIT, WE TRAIN. OKAY. GOT IT. I SAW YOU HAVE A QUARTERLY NETWORKING DIRECT CONNECT. 
          THAT'S QUARTERLY, RIGHT. OR HOW OFTEN DO YOU HAVE DIRECT CONNECT MONTHLY? WE HAVE SOME SPECIAL DIRECT CONNECT. SO I THINK THE ASSOCIATION IS GOING TO HAVE ONE THIS WEEK. AND THEN WE'LL DO A WE'LL DO A. DIRECT CONNECT IS MONTHLY. AND I THINK I'VE BEEN TO ONE. AND IS THERE A FEE TO ATTEND THAT OR REMEMBER NOT OKAY. IF YOU'RE JUST STANDING. IT'S A IT'S A NOMINAL. HOW MANY CURRENT ACTIVE MEMBERS DO YOU HAVE OR 30. AND WHAT'S YOUR RATIO OF DUES TO NON DUES REVENUE. LE A. IT'S BALANCED. THE. OFF THE TOP OF MY HEAD NON DUES VERSUS DUES. I THINK IT WOULD BE. IT'S HARD TO GET TO THAT 6040 THAT WE ALL STRIVE TO, TO GET TO. SO GOING BACK TO THE SMALL BUSINESS SLIDE WHERE YOU HAD THE BUSINESSES LISTED ON THE RIGHT, HOW MANY, HOW MANY OF THOSE BUSINESSES THAT, THAT PARTICIPATED IN THE ROUNDTABLES ARE MEMBERS OF THE CHAMBER OR MAYBE EVEN HOW MANY DID YOU GET ANY MEMBERSHIP FROM THOSE ROUNDTABLES? IT'S NOT DESIGNED. I MEAN, PART OF OUR CONTRACT WITH THE CITY IS JIMMY ASKED THAT QUESTION TODAY. WE SERVICE EVERYBODY, SO MEMBERSHIP IS NOT A BARRIER. AS YOU ELEVATE AND YOU TAKE ADVANTAGE OF MORE SERVICES THAN. IT'S A NATURAL SITUATION. SO I'D SAY OF THE ROUNDTABLES, MOST OF THEM ARE MEMBERS. YEAH. I THINK ON THE ORIGINAL ROUNDTABLES THAT NIETZSCHE IS A PART OF, I THINK PRETTY MUCH ALL OF THEM HISPANIC, PROBABLY NONE OF THEM. 
          OKAY. SO AND HAVE YOU SEEN LIKE, HOW HAVE YOU SEEN THOSE NUMBERS INCREASE FROM ONE UP? HAVE YOU SEEN SCALE? HAVE YOU SEEN, HAVE YOU SEEN THEM GO UP OR IS IT ABSOLUTELY. IT'S IT'S HOW MEASURES CAESARS RIGHT. PROGRESS. AND SO HE HAS AND I WON'T GET INTO HOW OUR STRUCTURE IS, BUT IT'S VERY INTENTIONAL AND VERY, VERY MEASUREMENT SPECIFIC. AWESOME. 
          WELL, THANK YOU VERY MUCH. I APPRECIATE ALL THAT YOU DO FOR THE CITY OF GARLAND. THANK YOU, MADAM DEPUTY MAYOR PRO TEM DUTTON. HI, PAUL. HOW OFTEN DOES THE CHAMBER WORK WITH OUR ECONOMIC DEVELOPMENT DEPARTMENT IN REGARDS TO RECRUITING NEW BUSINESSES? WELL, DAILY WE WORK WITH WITH THEM THE EXPERTISE THAT YOU NEED TO RECRUIT BECAUSE IT GETS INVOLVED WITH 
          [00:40:02]
INFRASTRUCTURE AND INCENTIVE. THAT'S 100% WHAT I OFFER. THE. WHEN IT COMES DOWN TO THE NEEDS FOR WORKFORCE AND. OUR. THE ISD THAT WE PLAY WITH. SO I THINK WE WE WORK A LOT OUTSIDE THE RECRUITING SIDE OF. IT IS ON THE BASIC NEEDS. IF IT'S AN INFRASTRUCTURE QUESTION, IF IT'S A UTILITY QUESTION. WE'VE HAD HOMELESS CONNECTIONS, HOMELESS QUESTIONS ABOUT. SO IN THAT REGARD, DEPARTMENT IS A TREMENDOUS RELATIONSHIP WITH EVERYBODY. SO WE WORK WITH THEM. 
          YOU UNDERSTAND THAT AYAKO TAUGHT ME ECONOMIC DEVELOPMENT. SHE WAS MY FOURTH ECONOMIC DEVELOPMENT HIRE WHEN AFTER I GOT HERE. SO AFTER I WENT THROUGH THREE GUYS AND AYAKA WAS THE LAST PERSON STANDING, I SAID, YOU KNOW, COME IN AND SAY THIS. AND SO 15 YEARS AGO. SCAR TISSUE IS JUST STARTING NOW. AND THEN WHEN WE WHEN WE SEE WHAT THE CITY TOOK BACK THE RECRUITING SIDE NATURALLY, BECAUSE THAT'S WHERE THE INCENTIVES WERE. SHE WANTED. SO IT WAS A GREAT RELATIONSHIP. AND THEN ON YOUR SMALL BUSINESS DEVELOPMENT. SO I KNOW PERSONALLY IN MY DISTRICT, WE HAVE A VERY LARGE AMOUNT OF LITTLE MOM AND POP SMALL BUSINESSES. AND THEN I SAW THAT ONE OF THE THINGS THAT YOU GUYS WORK ON IS LIKE THE FACADE IMPROVEMENTS. AND WITH OUR NEW STRATEGIC PLAN, THIS IS SOMETHING THAT IS VERY CRITICAL. 
          AND SO IS THIS SOMETHING THAT YOU GUYS ALREADY WORK WITH OUR STAFF ON? IS IT SOMETHING THAT WE CAN MAYBE HOW CAN HOW CAN WE MAKE THAT THE MOST BENEFICIAL MOVING FORWARD FOR OUR STRATEGIC PLAN? AND CITY MANAGER AND I HAVE HAD CONVERSATIONS ABOUT THE ROLE GOING FORWARD. I DON'T SEE US. YOU KNOW, THIS THIS PROGRAM IS A LOT TO THE FOLKS THAT ARE ON THE GROUND IN TERMS OF THE INITIATIVE AROUND HOUSING AND THEN RELATED TO RETAIL AND GETTING MORE EMPHASIS ON THAT. AS I WAS SAYING, MIKE CAME TO OUR BOARD MEETING. I THINK THAT SHE AND OTHERS ARE ALREADY JUMPING UP AND SAYING, I WANT THIS FOR THEM. SO IT'S EITHER IMPROVEMENT PLAN HAS BEEN A CITY RUN PROGRAM THAT'S GONE ON. AND SO IT'S TAKEN ON A WHOLE NOTHER LAYER OF EMPHASIS WITH WITH YOUR TEN YEAR PLAN. SO YOU'LL SEE US A LOT INVOLVED WITH THAT. OKAY. THEN MY LAST ONE, WE'RE, I THINK WE'RE ALL GRATEFUL FOR YOUR CANDIDATE VIDEOS. ONE THING THAT I WOULD LOVE TO SEE IS FOR YOU GUYS TO HOST A CANDIDATE FORUM, ONE THAT IS RECORDED AND PUT OUT ON SOCIAL MEDIA. THAT'S SOMETHING THAT WE ARE GREATLY LACKING OVERALL. WE WE HAVE TWO CURRENT CANDIDATE FORUMS. HOWEVER, THEY'RE NOT WIDELY PUBLICIZED OR. THEY'RE NOT MARKETED. SO PEOPLE DON'T SHOW UP. SO IT'S NOT FALLING ON DEAF EARS. AND I THINK WHAT I WHAT I'M HEARING IS THE, WHAT'S MISSING IN THE IN THE VIDEOS IS THE INTERACTION BETWEEN THE CANDIDATES. IS THAT WHAT YOU'RE SAYING OR? I MEAN, I, WE HAVE, WE HAVE CANDIDATE FORUMS, BUT THEY'RE NOT ADVERTISED, RIGHT? SO PEOPLE DON'T KNOW TO SHOW UP TO THEM. THEY'RE NOT RECORDED, THEY'RE NOT PUT OUT ONLINE. AND SO I THINK THAT YOU GUYS DO A GREAT JOB WITH THE CANDIDATE VIDEOS. AND SO I THINK YOU COULD DO A GREAT JOB WITH A CANDIDATE FORUM THAT IS THAT IS DONE RIGHT. THANK YOU PAUL. THANK YOU. BERTRAND. THANK YOU MAYOR. THANK Y. PAUL. FIRST, I APPRECIATE GARLAND CHAMBER OF COMMERCE, YOUR WHAT YOU HAVE DONE FOR THE PAST MANY YEARS. I GRADUATED FROM LEADERSHIP GARLAND CLASS 45. I APPREATE THAT. I LIKE THE DIRECT CONNECT. GIVE ME AN OPPORTUNITY TO MEET THE BUSINESS COMMUNITY. ALSO THE THE RIBBON CUTTING. AND IT'S REALLY GREAT THAT WE CAN VISIT OUR BUSINESS IN OUR DISTRICT AND MANY MORE. SO I APPRECIATE IT. MY QUESTION IS THAT EARLIER YOU MENTIONED WE HAVE ABOUT 5000 BUSINESSES IN GARLAND, RIGHT? AND YOU HAVE ABOUT 430 BUSINESSES MEMBERS. 
          YOU LOOK LIKE YOU STILL HAVE LIKE 91%. IT'S NOT OUT THERE FOR RETENTION. SO DO YOU HAVE ANY KIND OF STRATEGY? HOW DO WE CAN GET THEM IN AND THEN NOT HAVE THAT MANY MEMBERS? YOU KNOW, IF YOU'VE BEEN AROUND ME FOR A WHILE, YOU KNOW, YOU OLD STORIES AND I CAME HERE FROM HOUSTON, WHERE MY JOB WAS TO GET THAT CHAMBER TO 10,000 MEMBERS. AND I HAD HUNDREDS OF 
          [00:45:01]
VOLUNTEERS AT THE RECRUITMENT ON THE RETENTION SIDE AND EXECUTIVES, PEOPLE JUST GETTING PEOPLE IN. WE'RE A LOT MORE INTENTIONAL. WE'RE WE'RE ABOUT 404 30 RIGHT NOW. WE'RE PROBABLY CAP IT AT AROUND FIVE. THAT'S HOW MANY PEOPLE WE CAN SERVE. AND. THIS RELATIONSHIP ALLOWS US TO SERVE ANYBODY. AND SO IT'S NOT IT'S NOT MY GOAL TO HAVE HUNDREDS AND HUNDREDS OF MEMBERS. IT'S MY GOAL, OUR GOAL COLLECTIVELY TO SERVE, TO HAVE AS MANY MEMBERS AS WE WERE COMMITTED TO SERVE. AND THAT'S A FUNCTION OF THE STAFFING AND THOSE KINDS OF THINGS. SO, YOU KNOW, I APPRECIATE THAT. THAT'S A COMMON YOU KNOW, WHEN YOU TALK TO A CHAMBER, TYPICALLY THE FIRST 2 OR 3 QUESTIONS IS HOW MANY MEMBERS DO YOU HAVE? THE WAY I DESCRIBE THAT IS, YOU KNOW, THE BUSINESS JOURNALS BOOK LIST HAS A PAGE OF CHAMBERS5 ON THAT LIST, RANKED BY NUMBER OF MEMBERS. WE DON'T SHOW UP ON THAT LIST. WE HAVE LESS MEMBERS THAN THE 25TH CHAMBER IN TERMS OF RESOURCES. WE'RE LIKE 4 OR 5. SO THAT'S WHERE I REALLY MEASURE SUCCESS IN TERMS OF WHAT RESOURCES CAN WE BRING TO BEAR AROUND WORKFORCE, AROUND SMALL BUSINESS AROUND. BUT THANKS FOR THAT. THANK YOU. I THINK IF THE LOT OUT THERE NOT NEEDS BUSINESS ATTENTION AND THEY ARE GOOD ON THEIR OWN, WHICH IS GREAT, BUT I WORRY ABOUT IF THERE ARE BUSINESS OUT THERE. THEY NEED OUR HELP, BUT WE'RE NOT REACH THEM YET. WELL, WE HAVE A REALLY ROBUST MMUNICATIONS GROUP. WE WORK A LOT WITH THE CITY. WE WORK A LOT WITH YOU ALL. I THINK CESAR HAS GONE AROUND. AND SO, YOU KNOW OF THOSE FOLKS GETTING PEOPLE TO ASK FOR HELP IS IS TOUGH FOR SOME FOLKS. BUT CESAR, PART OF HIS JOB IS TO GO OUT THERE AND AND HE'S DOING IT ACROSS THE CITY. SO IT'S MISSIONARY WORK, ONE AT A TIME. 
          I LIKE HIM. HE REACHED OUT TO US. GOOD. WELL, LAST QUESTION IS LIKE IN FOLLOWS THE DEPUTY MAYOR PRO TEM. CARISSA DUTTON. THAT. OH I WAS CURRENTLY. SINCE WE ARE IN THE. NOT ON THE RISE PLAN IS VERY IMPORTANT TO US. AND IF THE CHAMBER OF COMMERCE HAVE. CAN REVIEW THE PLAN AND SEE IS ANYTHING THAT CAN SUPPORT. THAT WOULD BE GREAT TO OUR STRATEGY. SO MIKE AND I ARE ON. YOU KNOW, WE HAD THAT CONVERSATION. COUNT ON IT. THANK YOU. THANK YOU MA'AM. 
          THANK YOU SIR. ANY OTHER QUESTIONS? I SEE NONE THANK YOU SIR. THANK YOU. I WILL MOVE ON 
          [8. Presentation of the FY 2026-27 Proposed Annual Operating Budget]
TO OUR NEXT ITEM. ITEM NUMBER EIGHT IS PRESENTATION OF THE FISCAL YEAR 2020 627 PROPOSED ANNUAL OPERATING BUDGET. MR. CITY MANAGER, THANK YOU, MAYOR AND COUNCIL, I'M PLEASED TO PRESENT TONIGHT THE FISCAL YEAR 27 PROPOSED BUDGET. THIS IS A MILESTONE BUDGET FOR US BECAUSE IT'S THE FIRST BUDGET UNDER THE GARLAND ON THE RISE STRATEGIC PLAN THAT YOU ADOPTED LAST MONTH. EVERY DOLLAR IN THIS BUDGET IS AIMED AT FOUR THINGS THAT THE PLAN COMMITS US TO. 
          ONE, STRENGTHENING FINANCIAL STEWARDSHIP. NUMBER TWO, ACCELERATING ECONOMIC REDEVELOPMENT. NUMBER THREE, PROTECTING CORE SERVICES. AND NUMBER FOUR, ENSURING ACCOUNTABILITY. WE BUILT THIS BUDGET AROUND THREE PRIORITIES. THE FIRST PRIORITY WAS TO DELIBERATE DECISION NOT TO USE ONE TIME FUNDING FOR RECURRING EXPENSES. AND I MENTIONED THIS DURING OUR WORK SESSION. THAT IS, WE DON'T WANT TO PROPOSE FUNDING RECURRING COSTS WITH ONE TIME REVENUE. INSTEAD, WE PROTECT OUR FISCAL RESERVES AND USE ONE TIME FUNDING FOR ONE TIME PROJECTS. SECOND, WE ADDRESS THE GENERAL SCHEDULE WAGE GAP. I MENTIONED TO YOU DURING THAT SATURDAY WORK SESSION, 3% MERIT INCREASE AND TARGETED MARKET ADJUSTMENTS SO WE CAN KEEP AND RECRUIT THE TALENT T THAT WE NEED TO BE SUCCESSFUL IN OUR STRATEGIC PLAN. AND THIRD, WE CONNECT FUNDING TO THE STRATEGIC PLAN REPRIORITIZING OUR BASELINE. SO WE ACTUALLY SPEND MONEY THAT WE ACTUALLY SPEND ADVANCES OUR GOALS UNDER THE STRATEGIC PLAN, RATHER THAN JUST CARRYING FORWARD THE PRIOR YEAR. SPENDING. A FEW HIGHLIGHTS BEFORE OUR CFO, ALISON STEADMAN, TAKES YOU THROUGH DETAILS. UNDER THIS BUDGET, WE INVEST IN REDEVELOPMENT AND NEIGHBORHOOD REVITALIZATION. WE'VE ADDED CAPACITY AND CODE, NEIGHBORHOOD VITALITY, COMMUNITY DEVELOPMENT, PLUS A $5 MILLION CONTRIBUTION TOWARDS REVITALIZATION IN OUR AREAS. PROTECT PUBLIC SAFETY WITH NINE ADDITIONAL FIREFIGHTERS AND ADDITIONAL 
          [00:50:01]
POLICE OFFICERS AND EIGHT ADDITIONAL EMERGENCY DISPATCHERS, AND WE FUND CORE SERVICES THAT RESIDENTS COUNT ON IN LIBRARY BOOKS, FUNDING AND SUPPORT FOR OUR LARGER ANIMAL SHELTER AND SUPPORT FOR OUR NEWEST FACILITIES. BUILT UNDER THE 2019 AND 2025 BOND PACKAGES. THE COMBINED BUDGET THIS YEAR IS $1.028 BILLION, AND THE GENERAL FUND IS $271.6 MILLION. THE BUDGET IS BUILT ON A PROPOSED TAX RATE OF 67.9 $0.09. THAT IS A PENNY BELOW LAST YEAR, WITH THE NOVEMBER ELECTION PROPOSING TO SHIFT $0.03 FROM DEBT SERVICE TO OPERATIONS. I WANT TO THANK SENIOR LEADERSHIP HERE AT THE CITY AND ESPECIALLY OUR BUDGET TEAM AND THIS COUNCIL, FOR THE GUIDANCE THAT SHAPED THIS BUDGET, AND NOW I'M HAPPY TO TURN IT OVER TO MISS STEDMAN TO WALK US THROUGH IT. THANK YOU, MIKE, JUST FOR THE COUNCIL IS MIKE. HE STARTED BEFORE WE GOT IN HERE PASSING OUT THE BOOKS, MIKE ADDRESSED HIS THREE PRIORITIES FOR THE BUDGET, AND WE'VE SEEN THOSE. SO WE'LL JUST JUMP RIGHT INTO THE DETAILS AND JUST STOP US. IF YOU HAVE A QUESTION. OTHERWISE, WE'RE GIVING YOU A HIGH LEVEL PREVIEW OF THE BUDGETONIGHT, AND THEN WE'LL BE BACK AS WE'LL GO OVER THE CALENDAR ON JULY 25TH. FOR THE MORE IN DEPTH DISCUSSION OF THIS BUDGET. SO FIRST, AS MIKE POINTED OUT, THIS BUDGET TAKES AND TAKES PLACE IN THE CONTEXT OF US REBALANCING THE TAX RATE. AND SO WE HAVE THE NEED FOR REBALANCING THE TAX RATE BECAUSE WE HAVE A MODEST PROPERTY TAX BASE. WE'RE 59.2 MILLION BELOW AVERAGE JUST IN PROPERTY TAX. OUR PUBLIC SAFETY COST IS GREATER THAN THE SUM OF OUR PROPERTY TAX AND SALES TAX. WE ALREADY HAVE A HIGH TAX RATE COMPARED TO OUR METROPLEX COMPARISON CITIES. AND THEN THAT SB TWO CAP OF 3.5% EQUATES TO ABOUT 2 MILLION IN NEW PROPERTY TAX REVENUE EACH YEAR. AND FOR CONTEXT, A 3% MERIT TO GENERAL FUND EMPLOYEES COSTS ABOUT 5 MILLION. SO THIS IS OUR OPPORTUNITY TO REALIGN OUR TAX RATE CAPACITY FROM OUR DEBT SERVICE OVER TO THE GENERAL FUND, THE O&M, SO WE CAN FUND THE OPERATIONS OF OUR AMENITIES CONSTRUCTED THROUGH OUR BOND PROGRAMS, ENSURE LONG TERM SUSTAINABILITY, AND MOVE AWAY FROM OUR CAPITAL INTENSIVE PERIOD TO FOCUS ON AN INVESTMENT IN OUR CORE SERVICES AND REDEVELOPMENT OF GARLAND. AND THIS WILL HOPEFULLY START CHIPPING AWAY AT WHAT WE CALL BEEN CALLING GARLAND'S CHALLENGE FOR YEARS, AND THAT OVERALL, WE HAVE A MODEST PROPERTY TAX AND SALES TAX BASE. WE'RE 90 MILLION BELOW THE METROPLEX AVERAGE. WHEN YOU COMBINE PROPERTY TAX AND SALES TAX REVENUE COMPARED TO OUR COMPARISON CITIES, WE HAVE A LOWER POPULATION GROWTH AND WE'RE LARGELY BUILT OUT. SO FUTURE REVENUE GROWTH IS CRITICAL TO SUSTAINING OUR CURRENT SERVICE LEVELS. AND WITHOUT THAT SUFFICIENT REVENUE GROWTH, THE COMBINATION OF TAX RATE REBALANCING AND REDEVELOPMENT IS CRITICAL FOR US. OTHERWISE, WE WILL HAVE CHALLENGING TRADE OFFS AND PRIORITIES IN THE FUTURE. SO WITH THAT, GO OVER THE REBALANCING OF THE TAX RATE FOR NOVEMBER OF 2026, THIS IS PRELIMINARY. WE WILL NOT RECEIVE OUR CERTIFIED VALUES UNTIL JULY 24TH. SO THIS PROPOSED BUDGET IS BASED ON ESTIMATES WHICH WILL GO OVER. WE'RE LOOKING AT DECREASING THE OVERALL TAX RATE BY ABOUT $0.04 AND $0.01 AND REBALANCING THE TAX RATE $0.03 WITHIN FROM THE DEBT SERVICE TO THE O&M SIDE OF THE TAX RATE. SO THIS WILL SHORE UP FUNDING FOR CITY SERVICES, WILL ALSO PROVIDE TAX RATE RELIEF. WITH THAT, I'LL HAND IT OVER TO OUR BUDGET MANAGER, FAHAD TO TALK YOU THROUGH THE DETAILS. THANK YOU. SO THE BUDGET DOCUMENT THAT YOU ALL HAVE IN FRONT OF YOU INCLUDES THE APPROVAL OF THE TAX RATE. THERE IS AN APPENDIX TOWARDS THE END THAT WILL OUTLINE WHAT THE DIFFERENCES ARE, THE NUMBERS THAT WE'RE GOING TO GO THROUGH HERE TODAY ALSO ASSUME THE APPROVAL OF THE TAX RATE. CONSOLIDATED TOTAL COMBINED BUDGET IS 1.0 BILLION. THIS IS A DECREASE OF 40.7 MILLION. THE PRIMARY REASON FOR THE DECREASE IS THE TRANSFER OF STREETS FUNDING OVER TO THE CIP AND OUT OF THE OPERATING BUDGET, AS WELL AS DEPLETION OF ARPA FUNDING, WHICH IS EXPECTED TO BE FULLY EXPENDED BY THE END OF THIS YEAR. ON THE GENERAL FUND SIDE, THE TOTAL BUDGET IS 27.16 2270 1.6 MILLION, WHICH IS AN INCREASE OF 14.4 MILLION. AND A LARGE PART OF THAT IS DUE TO THE ADDITIONAL CAPACITY WITH THE TAX RATE. LOOKING AT THE PRIMARY GENERAL FUND REVENUE AREAS, PROPERTY TAX MAKES UP ABOUT 34%. SALES TAX 17. LANDFILL DISPOSAL ABOUT 10%, ROI ABOUT 10%. AND ALL OTHER REVENUE SOURCES SUCH AS EMS FEES, PMITS AND MUNICIPAL COURT FINES ARE ABOUT 29%. AND 
          [00:55:06]
AGAIN, THIS IS USING THE PRELIMINARY TAX RATE APPROVAL, WHICH IS EXPECTED TO GENERATE ABOUT 10.3 MILLION IN ADDITIONAL PROPERTY TAX REVENUE. LOOKING AT OUR PROPERTY TAX BASE, BASED ON PRELIMINARY EARLY ESTIMATES FROM THE DCAD, WE'RE LOOKING AT ABOUT 30.2 BILLION, WHICH IS A $1.9 BILLION INCREASE FROM THE PRIOR YEAR. AND WE WILL HAVE A CERTIFIED VALUES ON JULY 24TH. AND WE'LL BE COMING BACK TO COUNCIL WITH THAT INFORMATION. 
          LOOKING AT OUR PROPERTY TAX BASE GROWTH FOR NEW CONSTRUCTION, WE'RE LOOKING AT ABOUT 470 MILLION THIS YEAR, WHICH IS LOWER THAN PRIOR YEARS. BUT WE'VE HAD HISTORIC HIGHS THE LAST SEVERAL YEARS. AND BASED ON LEADING INDICATS FROM OUR BUILDING PERMIT INFORMATION, WE EXPECT THESE TO CONTINUE TO DROP. LOOKING AT OUR TAX BASE, GROSS PERCENT CHANGE, WE'RE AT EXPERIENCE ABOUT 6.53% INCREASE. BUT AGAIN, THIS IS LIMITED BY SB TWO 3.5% REVENUE CAP. LOOKING AT OUR SALES TAX, WE'RE ABOUT AT 45.5 MILLION FOR THE UPCOMING YEAR, WHICH IS ABOUT AT OUR NEW NORMAL OF ABOUT 45 MILLION. OVER THE LAST SEVERAL YEARS, WE'VE HAD VERY HEALTHY ONE TIME SALES TAX REVENUES, WHICH ARE THOSE DARK BLUE NUMBERS. BUT WE ARE NOT ASSUMING THOSE FOR THE UPCOMING YEAR BECAUSE OF THEIR ONE TIME IN NATURE. LOOKING AT THE ROI, ROI, WHICH IS 27.9 AND IS BASED ON A FLAT 8% OF RETAIL AVERAGE SALES, THAT'S A 3.5% INCREASE OVER THE PRIOR YEAR. LOOKING AT OUR LANDFILL DISPOSAL REVENUE, WE'RE ESTIMATING ABOUT 25.8. THIS DOES REFLECT PROPOSED RATE INCREASES FOR GATE FEES, WHICH IS EXPECTED TO GENERATE ABOUT $784,000 ADDITIONAL REVENUE. THE REASON WHY THIS LOOKS LARGELY FLAT TO THE PRIOR YEAR IS BECAUSE OF A STREET AND ALLEY SURCHARGE THAT WAS PREVIOUSLY ASSESSED TO THE SANITATION FUND HAS NOW BEEN REPLACED IN FAVOR OF A DIRECT TRANSFER FROM SANITATION TO THE INFRASTRUCTURE FUND. SO THOSE REVENUE, THOSE FEES ARE NO LONGER PASSING THROUGH THE GENERAL FUND. LOOKING AT SOME OF OUR MAJOR COST DRIVERS FOR THE FY 27 PROPOSED BUDGET, GENERAL SCHEDULE INCREASES, AS WELL AS CIVIL SERVICE AND SKILL BASED PAY ARE ESTIMATED TO BE ABOUT 4.6 MILLION. MARKET ADJUSTMENTS FOR HIGH TURNOVER AND FREQUENTLY VACANT POSITIONS ABOUT 1.2 MILLION INCREASES FOR THE CIVIL SERVICE. RETIREE RETIREMENT CURRENT CONTRIBUTION IS GOING UP TO 3.0%, WHICH IS THE FINAL RATE INCREASE BASED ON PREVIOUS COUNCIL DIRECTION, AS WELL AS INCREASES TO THE GROUP HEALTH INSURANCE FUND OF ABOUT 2 MILLION. ON THE OPERATING SIDE, WE'RE LOOKING AT RISING COSTS FOR BASELINE OPERATIONS AS WELL AS INCREASES TO FLEET RATES AND ASSOCIATED COSTS OF INTERNAL SERVICES SUCH AS I.T. AND VEHICLE REPLACEMENT AND FEEL. A QUICK HIGHLIGHT OF SOME OF THE BUDGET ITEMS. THESE ARE ITEMS THAT WOULD BE ADDED INTO THE BUDGET AS THE TAX RATE. IF THE TAX RATE GETS APPROVED, THAT'S A ADDITIONAL FIREFIGHTERS AND ADDITIONAL OVERTIME FOR FIREFIGHTERS, EMERGENCY SERVICES, DISPATCHERS, TEN ADDITIONAL POLICE OFFICERS, ANIMAL CARE TECHNICIANS, CODE STAFF, MUNICIPAL COURT SERVICES, PARK SECURITY AND AS WELL AS A PARKS FIELD SUPERVISOR. THESE ARE KIND OF GROUPED AS ENHANCED SERVICE LEVELS, WHICH WOULD BE ABOUT 4.9 MILLION. TO MAINTAIN THE LEVEL OF SERVICES THAT THE RESIDENTS HAVE COME TO EXPECT. THIS IS THE SECOND BLOCK. 
          THERE'S ABOUT 2.5 MILLION THAT INCLUDES PARKS AND CITY LANDSCAPING, MAINTAINING LIBRARY RESOURCES, MAINTAINING SPECIAL EVENTS, PARKS, VEHICLES, WILDFLOWER PLANTING PROGRAM, AS WELL AS FUNDING FOR THE TRANSPORTATION DEPARTMENT. SO IN TOTAL, THE TOTAL OF THESE BUDGET ITEMS ARE 7.3, OF WHICH 6.6 IS ONGOING AND ABOUT $800,000 IS ONE TIME ITEMS. LOOKING AT PROPOSED UTILITY RATE INCREASES, NO CHANGE FOR G, P, AND L ELECTRIC RATES WATER ABOUT A $2.2 $0.47 INCREASE. WASTEWATER $0.94. SANITATION $2 AND STORMWATER DOLLAR 72, WHICH. 
          THAT STORMWATER RATE WOULD BRING US CLOSE TO THE METROPLEX AVERAGE. SO TOTAL ON THE UTILITY BILL, WE'RE LOOKING AT A $7.13 INCREASE FOR THE AVERAGE RESIDENT. MOVING ON TO THE CALENDAR, ON JULY 25TH, WE WILL HAVE DEPARTMENT PRESENTATIONS DISCUSSING THEIR NEW FUNDING REQUESTS AS WELL AS FEE CHANGES. AND THAT WILL BE AN OPPORTUNITY FOR COUNCIL DISCUSSION AS WELL. JULY 28TH, WE WILL BE SUBMITTING THE CERTIFIED TAX ROLL AND BRINGING 
          [01:00:04]
BACK FORTH INFORMATION TO COUNCIL REGARDING POTENTIAL CHANGES TO THE BUDGET BASED ON CERTIFIED PROPERTY VALUES. AUGUST 3RD WILL BE FURTHER COUNCIL DISCUSSION. AUGUST 4TH WILL BE A PUBLIC HEARING. AUGUST 11TH PUBLIC HEARING COUNCIL DISCUSSION AND THEN AUGUST 17TH WILL BE WILL BE SEEKING ADOPTION OF THE PROPOSED BUDGET AS WELL AS CALLING THE TAX RATE ELECTION. AND WITH THAT, WE'LL TAKE ANY QUESTIONS. ALL RIGHT. I HAVE A QUESTION. COUNCIL MEMBER MOORE. YEAH, I'D JUST LIKE TO MAKE SURE THAT I DIDN'T SEE IT IN THE BOOKLET. WILL YOU BE MAKING THIS PART OF A PRESENTATION FOR US, THIS PRESENTATION? YES, WE WILL PROVIDE THAT TO YOU. ALL RIGHT. THANK YOU SIR. COUNCIL. ANY OTHER QUESTIONS? MAYOR PRO TEM, I'D LIKE TO THANK YOU BOTH FOR THIS THIS FINE DOCUMENT. THIS IS A LOT OF WORK HERE. 
          THIS IS QUITE SOMETHING TO PUT TOGETHER. I DID HAVE ONE RECOMMENDATION, WHICH WAS FOR THE MOST FOR OUR CITY MANAGER WAS ABOUT A. SINCE WE'RE HEADING INTO THE BUDGET CYCLE, I WANTED TO SEE IF WE COULD GET PREPARED FOR JULY 25TH, A UTILIZATION REPORT FOR OUR THREE PUBLIC POOLS. AND THE REASON FOR THAT IS THAT WE CAN LOOK AT THE DAILY ATTENDANCE OF THOSE. SO WE CAN MAKE DECISIONS. YES, SIR. I'VE ASKED FOR THAT INFORMATION ALREADY. OKAY. 
          THANK YOU SIR. THANK YOU. ALL RIGHT, COUNCILMEMBER MOORE, EXCUSE ME, MR. MAYOR, COULD YOU GO BACK TO THE SLIDE WHERE YOU HAD THE ENHANCED SERVICE LEVELS? RIGHT. FIREFIGHTERS AND POLICE OFFICERS. WE UP TO COMPLIMENT. WE STILL UNDERSTAFFED. IS THERE SOMETHING THAT WE NEED TO DO IN THIS AREA TO ASSURE. I LIKE THAT SMILE. YOU TALK JUST A LITTLE BIT ABOUT WHERE ARE WE OR ARE WE PRESENT? I CAN TALK A LITTLE BIT ABOUT THIS, AND I'LL INVITE THE CITY MANAGER TO CHIME IN IF HE HAS ANY ADDITIONAL POINTS. AND I DON'T WANT TO SPOIL THE FANTASTIC PRESENTATIONS THE CHIEF WILL BOTH GIVE ON JULY 25TH FIFTH EITHER, BUT MY UNDERSTANDING IS THIS WOULD STILL PUT US BELOW SOME OF THE COMPARABLES IN TERMS OF OUR STAFFING RATIOS TO OTHER LIKE CITIES, BUT THESE ARE TO ENHANCE THE NUMBER OF STAFF TO SOME OF OUR MINIMUM STAFFING. AND AGAIN, THIS THAT'S THE LITTLE BIT I KNOW, BUT I'LL INVITE THE CITY MANAGER AND ANYONE ELSE THAT THEY'D LIKE TO COMMENT. AND AGAIN, BOTH OF THESE DEPARTMENTS WILL BE PRESENTING ON JULY 25TH. SO WITH RESPECT TO BOTH, WITH RESPECT TO FIREFIGHTERS UNDER THE MASTER PLAN THAT THEY HAD COME FORWARD WITH THAT THE COUNCIL SAW PREVIOUSLY THAT PLAN RECOMMENDED A SIGNIFICANT INCREASE IN THE STAFFING THAT THEY THEY HAVE. THIS STARTS TO MOVE TOWARDS. THAT DOESN'T SOLVE IT IN ONE YEAR. WE COULDN'T AFFORD TO SOLVE IT IN ONE YEAR, BUT IT STARTS TO MOVE TOWARDS THAT. THAT'S THE NINE ADDITIONAL FIREFIGHTERS. THE TEN ADDITIONAL POLICE OFFICERS ARE TO ATTEMPT TO BRING US CLOSER. AS MISS STEDMAN SAID, BRING US CLOSER TO THE PER CAPITA AVERAGE NUMBER OF POLICE OFFICERS IN THE METROPLEX. SO YOU WOULD HAVE IN A CITY OUR SIZE, PROBABLY WE'RE STILL LOWER, EVEN WITH THE TEN ADDITIONAL POLICE OFFICERS. BUT THAT'S WHY WE'RE ADDING THOSE POLICE OFFICERS UNDER THE BUDGET IS TO PROVIDE BOTH ADDITIONAL AND FIREFIGHTERS. 
          AGAIN, WE HAVE A SMALLER NUMBER PER CAPITA OF POLICE AND FIRE THAN OTHER CITIES IN THE METROPLEX. THAT'S A REFLECTION OF THE FACT THAT WE'VE GOT A MUCH MORE MODEST TAX BASE THAN THOSE CITIES IN THE METROPLEX. THIS IS AN ATTEMPT TO ENHANCE THOSE NUMBERS AND BRING US CLOSER TO THE PER CAPITA. AND THE CHIEFS, I'M SURE, WILL DESCRIBE BOTH OF THOSE SITUATIONS ON THE SATURDAY WORK SESSION. AND SINCE YOU HAVE THE MIC, JUST GO ON TO TALK A LITTLE BIT ABOUT JUST VERY BRIEFLY, WHAT HAPPENS WITH THIS BUDG, WITH THESE PROPOSALS. 
          IF, IN FACT, IN NOVEMBER, THIS TAX RALLY THAT WE'RE TALKING ABOUT, IT'S NOT ABOUT, WELL, IF THE VOTERS DON'T APPROVE THE SWAP BETWEEN THE DEBT SERVICE RATE AND THE OPERATING RATE, WE WOULD NOT HAVE THE FUNDING TO ADD THE ENHANCED SERVICE LEVELS, ADDITIONAL POLICE, FIRE AND DISPATCHERS AND DISPATCHERS. YOU'RE AWARE, YOU KNOW, YOU'VE HEARD, AND I'M SURE WE'VE WE'VE ALL HEARD ABOUT CITIZENS WHO CALL AND GET PUT ON HOLD AT DISPATCH, BECAUSE WE HAVE A LIMITED NUMBER OF DISPATCHERS. THIS TRIES TO ALLEVIATE PART OF THAT PROBLEM. ALL OF THESE ADDITIONAL SERVICES, ENHANCED SERVICE LEVELS WOULD NOT BE ADDED IN THE EVENT THAT THAT 
          [01:05:07]
THE VOTERS REJECTED THE PROPOSAL TO SWAP OUR DEBT SERVICE AND OPERATION RATE. AND AND THAT WOULD BRING SOME SIGNIFICANT CHALLENGES ACROSS THE CITY, BOTH WITH RESPECT TO EMERGENCY SERVICE, BUT ALSO SOME OF THE OTHER THINGS THAT ARE IN HERE, THE ADDITIONAL ANIMAL CARE TECHNICIANS, AS I'M SURE THE COUNCIL IS AWARE, YOU KNOW, WE'VE GREATLY ENHANCED THE SIZE OF OUR ANIMAL SERVICES CAPABILITY UNDER OUR NEW ANIMAL SHELTER OVER THE ANIMAL SHELTER, AND COMPARE IT TO THE OLD SHELTER. IT'S ALMOST THREE TIMES AS MANY DOGS THAT WE SERVICE, ESSENTIALLY WITH THE SAME NUMBER OF PERSONNEL, VERY FEW ADDITIONAL PERSONNEL. THIS IS TO ADD THE PERSONNEL TO BE ABLE TO ACTUALLY CARE FOR THE NUMBER OF ANIMALS THAT WE NOW ARE ABLE TO HOUSE. IT ALSO REFLECTS CODE COMPLIANCE ADMINISTRATOR AND AND PARKS FIELD SUPERVISORS TO PROVIDE ENHANCED SERVICES, BOTH FOR CODE COMPLIANCE AND FOR PARKS AND THOSE. NONE OF THOSE SERVICES WOULD BE ADDED IF WE ARE UNABLE TO. CONVINCE THE VOTERS THAT THIS IS THE APPROPRIATE THING TO DO, TO SWAP THE DEBT SERVICE AND OPERATING SERVICE BUDGETS. MR. MAYOR. THANK YOU, SIR. COUNCIL MEMBER LUCK. HI, ALLISON. THANK YOU VERY MUCH FOR THIS BUDGET PRESENTATION. HOW DO YOU HAVE THE YES AND THE NO BUDGETS PRESENTED IN THIS BINDER? SO EVERYTHING IN THE BUDGET IN THE BUDGET DOCUMENT ASSUMES THE YES BUDGET. THERE IS AN APPENDIX. I BELIEVE IT'S H THAT OUTLINES WHAT WE WOULD REMOVE FROM THE BUDGET IF THE TAX RATE DOES NOT PASS. SO WE'LL ADOPT THE BUDGET. WE'LL HAVE THE TAX RATE ELECTION. IF THE TAX RATE ELECTION DOES NOT PASS, WE'LL COME BACK THE FOLLOWING COUNCIL SESSION AND IMMEDIATELY AMEND THE BUDGET TO REMOVE THOSE THINGS. I BELIEVE IT'S APPENDIX H THAT OUTLINES SPECIFIC WHAT SPECIFIC ITEMS THE FISCAL IMPACT, BUDGET IMPACT. CORRECT. 
          AND THAT'S JUST A FUNCTION OF THE FACT THAT THE COUNCIL HAS TO ADOPT THAT YES. BUDGET TO PROMPT THE ELECTION, THAT IS, BY BY ADOPTING A BUDGET THAT WOULD INCREASE THE AMOUNT OF O&M SPENDING THAT WE HAVE, THAT WOULD PROMPT US TO RECEIVE THE APPROVAL OF THE VOTERS TO PASS THAT EVEN THOUGH AS, AS POINTED OUT, WILL BE A ABOUT A PNY LOWER THAN LAST YEAR. SO WE'LL ACTUALLY BE GOING DOWN. AND RESPECT TO THE TAX RATE, WE STILL, BECAUSE OF THE QUIRKY FUNCTION OF STATE LAW THAT SAYS, WELL, IF YOU'VE MOVED IT FROM THE DEBT SERVICE SIDE AND ADDED TO THE OPERATING SIDE, WE'RE JUST LOOKING AT THE OPERATING SIDE. SO EVEN THOUGH THE THE OVERALL TAX RATE GOES DOWN A PENNY, WE STILL HAVE TO GO TO THE VOTERS AND ASK FOR THEIR APPROVAL. AND THAT'S JUST A FUNCTION OF THE WAY THAT THEY DESIGN STATE LAW. AGAIN, GREAT WORK ON THIS. YOU ALWAYS DO A FANTASTIC JOB ON IT. IT'S ALWAYS VERY EASY TO FIND THINGS. 
          ONE OF THE QUESTIONS I HAD BEFORE WE JUMP OUT OF THE BUDGET DISCUSSION IS THE ENHANCED PARK SECURITY. WILL THAT BE ONE OF THE PRESENTATIONS GIVEN? YES IT WILL. OKAY. THE PARKS DEPARTMENT GO OVER ALL OF THEIR REQUESTS. OKAY. WELL, I WILL LET THEM DO THAT AND NOT GO INTO IT TODAY. I APPRECIATE IT. THANK YOU VERY MUCH. THANK YOU. 
          THANK YOU MA'AM. COUNCILMEMBER THOMAS. YES. SO I'M LOOKING ON PAGE 93 OF CULTURAL ARTS. I SEE AN INCREAS NUMBER FOR GRANVILLE ARTS CENTER, WHICH IS GOING TO BE CLOSED ALL OF NEXT YEAR. SO I'M WONDERING WHAT THAT WHATHAT'S FOR AND IF I SHOULD WAIT FOR THE CULTURAL ARTS PRESENTATION, TEL ME THAT THAT IS THE TRANSFER OF THE POSITION THAT W FUNDED, THE HOTEL MOTEL TAX FUND, TO MORE CLOSELY ALIGN WITH THE REQUIREMENTS OF THE HOTEL MOTEL TAX FUND REQUIREMENTS. WE ARE MOVING THAT POSITION. IT IS A CULTURAL CULTURAL ARTS SUPERVISOR. SO IT'S NOT A NEW POSITION. IT'S A TRANSFER OF A POSITION INTO THE GENERAL FUND. 
          I'M TALKING ABOUT A BUDGET SUMMARY BY OPERATIONAL AREA, GRANVILLE ARTS CENTER. NOTHING TO DO WITH PERSONNEL IS THAT GOES FROM 979,000 TO 1 MILLION OH SIX. WE'RE NOT PAYING ANY ROSENTHAL $1 MILLION, ARE WE? THAT. THAT IS SO CULTURAL ARTS IS NOT CURRENTLY SCHEDULED FOR OUR JULY 25TH WORK SESSION, BUT WE COULD WORK WITH AMY IF THERE ARE SOME SPECIFIC QUESTIONS TO BE ASKED. THAT DEPARTMENT BUDGET SUMMARY PAGE IS AN OUTLINE OF THE TOTAL BUDGET FOR THAT OVERALL DEPARTMENT, WHICH IS MORE THAN JUST THE GRANVILLE ARTS CENTER. THE NEXT YEAR'S BUDGET DOES CONTEMPLATE SOME AMOUNT OF CAPACITY GIVEN TO CATALYZE THE ART INCUBATOR, AS WELL AS SOME OF THE OTHER CONTINUING ACTIVITIES HER DEPARTMENT WILL DO WHILE THE 
          [01:10:03]
GRANVILLE ARTS CENTER IS CLOSED. SO. BUT LET US TAKE THIS AS A AS AN ACTION ITEM TO GET YOU A MORE WRITTEN DETAIL. EXACTLY WHAT MADE UP THAT CHANGE. IT IS THE POSITION THAT FARHAD MENTIONED, BUT WE CAN ITEMIZE THAT OUT FOR YOU, AND IT CAN BE OUR OUR FIRST FOLLOW UP COUNCIL QUESTION FOR THE BUDGET PROCESS. AND YOU HAVE SEPARATE LINES FOR THE ARTS CENTER AS A THEATER BANQUET HALL. YES. CROSSING SPECIFICALLY THE ARTS. THOSE OTHER THREE ARE GOING TO CONTINUE AS THEY ALWAYS HAVE. YES. BUT THE ARTS CENTER, AND THAT MAY BE THAT WE'RE MOVING THAT TO A HIGH SCHOOL WHERE WE'RE DOING THE SYMPHONY, DOING THERE. SO THE STAFF WILL CONTINUE. THEY'LL STILL CONTINUE DOING EVENTS AND ACTIVATIONS AROUND THE CITY. IN TERMS OF HER EXACT PLAN FOR THOSE ACTIVATIONS WOULD GET A LITTLE BIT OUTSIDE OF THE BUDGET AREA. SO I MAY WORK WITH CITY MANAGEMENT ON THE APPROPRIATE WAY TO KIND OF GIVE COUNCIL AN UPDATE ON HER PLAN IN TERMS OF WHEN THE GRANVIL IS CLOSED, HOW THEY'LL BE DOING THOSE EVENT ACTIVATIONS, GETTING PERFORMANCES SCHEDULED, WHAT FACILITIES THEY PLAN TO UTILIZE FOR THAT. OKAY. JUST TO FOLLOW UP ON THAT, THE, I THINK THAT THE, THE POINT IS, AND IT'S A IT'S A FAIR QUESTION BECAUSE, WELL, IF THEY'RE CLOSED, WHAT ARE THEY SPENDING THE MONEY ON? WELL, THE TRUTH IS, ALTHOUGH THE GRANVILLE ARTS CENTER IS CLOSED, ALL THOSE PERFORMANCES ARE GOING TO BE RESCHEDULED SOMEWHERE ELSE. AND SO THE PERSONNEL WHO ARE WORKING TO PUT THESE PERFORMANCES TOGETHER, VARIOUS PLACES, WILL STILL BE DOING THE WORK THAT THEY'RE DOING. THEY'LL JUST BE DOING THEM SOMEPLACE OTHER THAN ACROSS THE STREET AT GRANVILLE. I THINK THAT'S PROBABLY A MORE PRECISE ANSWER TO THE QUESTION THAT YOU HAD. OKAY, THAT CERTAINLY MAKES PERFECT SENSE. IF THIS IS REALLY PERSONNEL RELATED, PERSONNEL ARE STILL GOING TO BE DEPLOYED. WE'RE WE'RE NOT GOING TO STOP DOINGHE SYMPHONY ORCHESTRA AND THE SUMMER MUSICALS AND ALL OF THAT. WE'RE JUST GOING TO BE SOMEWHERE ELSE. 
          YES, SIR. AND THERE CERTAINLY WOULD BE. THERE'S GOING TO BE SOME EXPENSES ON MOVING STUFF AROUND AND THINGS OF THAT NATURE. SO BUT THE CULTURAL ARTS DEPARTMENT'S SERVICES THAT THEY PROVIDE THAT ALLOW THE COMMUNITY TO ENJOY CULTURAL ARTS WILL CONTINUE EVEN DURING THE YEAR THAT THE GRANVILLE IS CLOSED FOR RECONSTRUCTION, BECAUSE THOSE PERFORMANCES WILL GO ON AT OTHER PLACES AROUND THE CITY. ALL RIGHT. THANK YOU. THANK YOU, MAYOR. THANK YOU SIR. 
          COUNCILMEMBER. THANK YOU MAYOR. THANK YOU. YOUR TEAM AND THE WHOLE TEAM THAT WORK HARD TO GET US A BEAUTIFUL THIS BOOK. SO WE GO OVER AND AND WE'LL HAVE THE QUESTION IN THE NEXT SESSION. I JUST WANT TO CLARIFY THAT THE FIRST PART IS FOR THE TAX RATE ELECTION, THAT WHAT I HEAR IS NOT INCREASED TAX, BUT I REDUCED AT LEAST ONE SENSE. RIGHT. AND WE MOVE. THE SENSE FROM THE DEAF SERVICES TO THE THE O AND M, THE THE BUDGETS, THE OPERATING BUDGETS. SO IF THE TAX RATE ELECTION DOESN'T PASS, A VOTER DOESN'T APPROVE, I THINK WE ANTICIPATE THAT WE CAN MAYBE CLOSE CERTAIN HOURS OR LIBRARARY OR PARK. I THINK WE JUST TRY TO EMPHASIZE THE IMPORTANCE OF THIS TAX RATE ELECTION. SO WE JUST SHARE WITH THE THE RESIDENTS AND UNDERSTANDS HOW IMPORTANT IT IS. IS THAT WHAT I UNDERSTAND CORRECTLY? YES, SIR. AND I'LL INVITE OUR CITY MANAGER TO TALK ON THIS A LITTLE BIT FURTHER, BECAUSE WE WILL BE THROUGHOUT THIS BUDGET PROCESS. AND THEN I'LL HAND IT OVER TO HIM. WE'LL BE HIGHLIGHTING THE THE KIND OF DICHOTOMY BETWEEN WHAT IS THE YES AND THE NO BUDGET. THIS WHAT YOU HAVE BEFORE YOU IS THE YES BUDGET. WE HAVE AN APPENDIX THAT OUTLINES THE NO BUDGET. HAVE THE DEPARTMENT SPEAK TO THAT, BUT THERE ARE OPERATIONAL CHANGES THAT MAY BE NECESSITATED SHORT TERM VERSUS LONG TERM. THAT WILL NOT BE REFLECTED IN THIS DOCUMENT, AND THAT WE HAVE A SERIES OF TOWN HALLS THAT WE'RE WORKING ON SCHEDULING AND ADVERTISING THROUGHOUT JULY AND AUGUST THAT WILL START TO HIGHLIGHT THAT. BUT IN TERMS OF THE OVERALL OPERATIONAL IMPACT, I'LL SEE IF THE CITY MANAGER WANTS TO ADD OR SPEAK TO THAT TONIGHT. WE MAY COME BACK WITH THAT INFORMATION. AS I SAID EARLIER, THE OPERATIONAL IMPACT WOULD BE SIGNIFICANT IN THAT WE CAN ADD THE POLICE AND FIRE AND EMERGENCY DISPATCHERS WE NEED. WE CAN'T FUND THE LIBRARIES AND SOME PARK OPERATIONS TO THE LEVELS THAT WE WOULD LIKE TO FUND THEM TO. AND AS YOU RECALL, ONE OF THE GOALS OF THE STRATEGIC PLAN IS TO MAINTAIN THE CORE SERVICES THAT OUR RESIDENTS HAVE BECOME ACCUSTOMED TO. AND SO THAT'S WHAT THE YES BUDGET ALLOWS. YES, BUDGET ALLOWS US TO HAVE ROOM IN THE OPERATING PART OF THE BUDGET. SO BECAUSE WE'RE IN A LESS CAPITAL INTENSIVE PHASE, IF YOU THINK ABOUT DURING THE THE BOND PROGRAMS, WE'RE IN A VERY CAPITAL INTENSIVE PHASE. WE'RE BUILDING A LOT OF STUFF. NOW THAT WE'RE DONE BUILDING 
          [01:15:02]
STUFF, WE NEED TO OPERATE IT. JUST BY WAY OF EXAMPLE, LAST YEAR FOR THE NEW SURF AND SWIM, WE HAD TO FUND ALL THE LIFEGUARDS. WE DIDN'T HAVE SUFFICIENT REVENUE TO FUND ALL THE LIFEGUARDS. SO WE USED ONE TIME MONEY TO FUND THE LIFEGUARDS. IF THE VOTERS DON'T SAY YES, AND THEN THE QUESTION IS, HOW DO WE CONTINUE TO FUND THINGS? WE CAN'T FUND THEM WITH ONE TIME MONEY YOU COULD, BUT EVENTUALLY ONE TIME MONEY RUNS OUT. AND THE GOAL UNDER THE STRATEGIC PLAN IS TO USE ONE TIME MONEY TO CHANGE THE TRAJECTORY OF OUR CITY SO THAT WE HAVE GREATER ECONOMIC DEVELOPMENT AND GREATER SALES TAX REVENUE TO ULTIMATELY RESULT IN A LOWER TAX BURDEN ON OUR RESIDENTS. AND SO USING THE ONE TIME MONEY FOR THAT PURPOSE SO THAT THEY ULTIMATELY, THE RESIDENTS CAN HAVE A LOWER RESIDENTIAL TAX BURDEN, AS OPPOSED TO USING ONE TIME MONEY TO KEEP THINGS OPEN UNTIL YOU RUN OUT OF ONE TIME MONEY AND THEN SHUT THEM DOWN, IS OUR PHILOSOPHY. THANK YOU. THANK YOU VERY MUCH. I THINK THIS IS IMPORTANT FOR OUR RESIDENTS TO UNDERSTAND THIS, AND TOGETHER WE HAVE TO WORK TOGETHER FOR THIS IMPORTANT TAX RATE. THANK YOU. THANK YOU SIR. ANY OTHER QUESTIONS? COUNCIL. THIS IS THE BEGINNING OF A MONTH AND A HALF PROCESS THAT WILL CULMINATE ON AUGUST 17TH, WHERE WE WILL ADOPT THE BUDGET AND CALL FOR THE TAX RATE ELECTION THAT WE'VE BEEN TALKING ABOUT AS WELL. SO WE HAVE ABOUT 45 DAYS TO REVIEW THIS DOCUMENT HERE IN FRONT OF YOU. AND PLEASE SEND ANY QUESTIONS YOU HAVE, EITHER CITY MANAGER OR TO ALLISON AND HER STAFF AS WELL. AND THEY'LL CERTAINLY GET US A LIST OF ANSWERS. SO THANK YOU VERY MUCH. SO MUCH. ITEM NUMBER NINE, THAT PROPOSED DEVELOPMENT AGREEMENT FOR 505 CENTERVILLE MF, LLC WILL BE POSTPONED TO A LATER 
          [10. Data Center Water and Electric Usage Report and Discussion of Economic Impact and Community Benefits]
DATE. SO WE'LL MOVE ON TO ITEM NUMBER TEN DATA CENTER, WATER AND ELECTRICITY USAGE REPORT AND DISCUSSION OF ECONOMIC IMPACT AND COMMUNITY BENEFITS. PLEASE. YES. AND THEN I'LL CALL THE SPEAKER'S NEXT. YES. 
          GOOD EVENING. GOOD EVENING, MAYOR AND COUNCIL. MY NAME IS CRYSTAL OWENS AND I'M ONE OF THE ASSISTANT CITY MANAGERS. AND WE ARE HERE TONIGHT TO TALK ABOUT DATA CENTERS. I ALSO HAVE HERE AT THE TABLE, MATT WATSON, ASSISTANT CITY MANAGER, AND DARYL KLEIN, GENERAL MANAGER OF GPNL. SO WE STARTED THIS A LITTLE BIT OF HISTORY. WE STARTED BACK IN MAY. THE STARTED WITH IN MAY, THE SECOND MEETING IN MAY, THERE WAS A REQUEST FROM THEN DEPUTY MAYOR PRO TEM OTT ASKING FOR A REPORT TO REVIEW DATA CENTER WATER USAGE IN COMPARISON TO OTHER COMMERCIAL WATER USERS. THERE WAS A SECOND. BY THEN MAYOR PRO TEM LUCHT, AND OVER THE COURSE OF THE LAST MONTH OR SO, IT KIND OF EVOLVED INTO NOT JUST WATER CENTER, NOT JUST WATER USE, BUT IT ALSO WAS EXPANDED TO INCLUDE ELECTRIC USE AS WELL AS THE ECONOMIC IMPACT. NEXT SLIDE. SO ONE THING THAT YOU'LL NOTICE ABOUT THE LIST THAT'S CURRENTLY ON THE SCREEN, IN ORDER TO KEEP THE FOCUS ON DATA CENTERS, WE TOOK OUT ACTUAL NAMES OF THE COMMERCIAL USERS AND REPLACED THEM WITH MORE GENERIC TITLES. YOU'LL SEE COMMERCIAL USER, WHOLESALE CUSTOMER, APARTMENT USERS, ETC. AND THEN YOU GET DOWN TO THE BOTTOM AND YOU SAY DATA CENTER A AND DATA CENTER D AS WELL AS B. IF YOU LOOK AT COMMERCIAL USER ONE, WHICH IS OUR HIGHEST WATER USER IN THE CITY OF GARLAND, IT'S ESTIMATED AT AROUND 280 MILLION GALLONS ON AN ANNUAL BASIS. THAT'S SIGNIFICANTLY DROPS DOWN IN THE SECOND POSITION, WHICH IS FARWELL GOLF. THAT IS THE ONLY ONE THAT IS CALLED OUT BY NAME, BUT IT'S ALSO ABOUT 130 MILLION GALLONS ON AN ANNUAL BASIS. BUT THAT'S NECESSARY IN ORDER TO CONTINUE PROVIDING THE EXPERIENCE THAT IS EXPECTED BY BOTH OUR RESIDENTS, AS WELL AS OUR VISITORS TO OUR GOLF PARK. ONE THING TO NOTE IN THIS LIST, THESE ARE THE TOP TEN USERS YOU'LL SEE AT POSITION SEVEN, AS WELL AS TEN THAT THOSE ARE APARTMENT USERS. AND YOU'LL 
          [01:20:05]
NOTICE THAT THOSE NUMBERS SIGNIFICANTLY DROP BETWEEN 1 AND 10 FROM 280 MILLION DOWN TO ABOUT 38 MILLION ON AN ANNUAL BASIS. AND THEN OUTSIDE OF THAT, FOR OUR FIRST DATA CENTER AT 129, THAT IS THE ACTUAL RANKING OF THAT DATA CENTER AT ABOUT 7 MILLION GALLONS PER YEAR. AND THEN DATA CENTER D AT RANKING 166 AT ABOUT 5.3 MILLION GALLONS PER YEAR. AND THEN DATA CENTER B, WE DO HAVE A METER THAT WAS INSTALLED IN FEBRUARY OF THIS YEAR, BUT A CEO HAS NOT BEEN ISSUED. SO WE DON'T NECESSARILY HAVE ANY DATA ON THAT PARTICULAR CENTER AT THIS TIME. NEXT. SO WHEN WE STARTED LOOKING AT THIS, THERE WERE SOME KEY FINDINGS. AND WHAT WE REALIZED IS THAT CITY OF GARLAND DATA CENTERS ARE NOT A SIGNIFICANT DRIVER OF OVERALL WATER DEMAND. DATA CENTERS AND D OPERATE A CLOSED LOOP COOLING SYSTEM THAT'S BASICALLY DESIGNED TO HAVE A NET ZERO EVAPORATION. WHAT DOES THAT MEAN? I'M SO GLAD YOU ASKED THAT QUESTION. SO A CLOSED LOOP SYSTEM AND I TRIED TO FIGURE OUT A WAY TO BRING THIS TO SOMETHING THAT IS NOT TOO TECHNICAL, BUT BASICALLY A CLOSED LOOP SYSTEM IS INTENDED TO FUNCTION SO THAT AT COMMISSIONING OR WHEN IT'S STARTED UP, THERE'S A COOLING FLUID THAT'S INJECTED INTO THIS SYSTEM. UNLESS THAT SYSTEM IS UNLESS THERE'S DAMAGE TO IT OR IT NEEDS TO BE MAINTAINED, THERE'S NEVER A NEED TO REPLACE THAT COOLING LIQUID, WHETHER IT'S WATER OR ANY OTHER KIND OF COOLING LIQUID. SO THE CLOSED LOOP SYSTEM LITERALLY CONTINUES TO RECYCLE THE PARTICULAR LIQUID THAT'S IN THAT SYSTEM. IT DOES NOT EVAPORATE OUTSIDE OF THAT SYSTEM WITH THE EXCEPTION OF MAYBE LEAKS, YOU KNOW, SMALL LEAKS, OR IF THERE IS A NEED TO MAINTAIN THAT SYSTEM AND A PORTION OF IT MAY NEED TO BE DRAINED EVEN AT THAT TIME. TYPICALLY, IF YOU NEED TO DRAIN IT AND START ALL OVER AGAIN, I BELIEVE THE AVERAGE IS ABOUT 300,000 GALLONS TO GO FROM ZERO TO BACK TO FULL CAPACITY. AND THEN IF YOU LOOK AT OUR ANNUAL WATER USAGE FOR DATA CENTERS, AND THEY REPRESENT REALLY JUST A SMALL FRACTION, ABOUT 2%, ONE AND A HALF TO 2% OF OUR HIGHEST WATER USERS WITHIN THE CITY OF RLAND. AND WITH THAT, I THINK I'LL TURN IT OVER TO THE NEXT PERSON. MAYOR, COUNCIL, DARRYL KLEIN, GARLAND, POWER AND LIGHT. I'M GLAD TO SEE THAT JED'S IN HERE BECAUSE JED WILL APPRECIATE THIS. SO WHENEVER INTERNAL AUDIT DOES A REPORT INVOLVING GARLAND POWER AND LIGHT, I ALWAYS ASK JED FOR PERSPECTIVE. SO I'M TRYING TO GIVE A LITTLE PERSPECTIVE. AND THE REASON WHY. LET'S SAY YOU HAD TWO INCIDENCES IN YOUR INTERNAL AUDIT REPORT. I'D GO, IS THAT TWO OUT OF TEN, OR IS THAT TWO OUT OF 10,000? IF TWO OUT OF 10,000, WE PROBABLY HAD A PRETTY GOOD REPORT. SO THAT'S WHAT I'M TRYING TO DO WITH REGARDS TO PERSPECTIVE OF GARLAND POWER AND LIGHT DEMAND, ERCOT DEMAND AND THEN DATA CENTER DEMAND. SO YOU CAN KIND OF GET AN IDEA OF WHAT WHAT WE'RE LOOKING AT AS IT RELATES SPECIFICALLY TO GARLAND. SO IF WE GO BACK TO 2025 AND WE LOOK AT THE PEAK DEMAND, THIS WOULD BE IN THE PEAK 15 MINUTE PERIOD. 
          WHAT WAS THE MOST USE THAT WE AND GFL HAD? THAT'S 506MW. WE GO TO ERCOT FOR 2025 AND WE LOOK AT THEIR PEAK DEMAND, THEIR PEAK 15 MINUTE USE. IT WAS 83,968MW. THAT'S 0.6% OF THE ERCOT. DEMAND IS WHAT GARLAND POWER LIGHT MADE UP OF THE OVERALL ERCOT DEMAND LESS THAN 1%. TO GIVE YOU AN IDEA, OVER TIME, GARLAND POWER AND LIGHT SYSTEM RELATIVE TO ERCOT HAS BEEN DIMINISHING. AND IF YOU THINK ABOUT IT, THE CITY OF GARLAND HAS EFFECTIVELY BUILT OUT. AND SO WE'VE HAD SMALL INCREMENTAL GROWTH, WHEREAS THE REST OF THE STATE, LARGE AMOUNT OF GROWTH. SO OUR POSITION RELATIVE POSITION HAS CONTINUED TO DECLINE OVER TIME. AND AGAIN, LESS THAN 1% OF THE OVERALL PEAK DEMAND GIVE YOU AN IDEA OF KIND OF WHAT WE'RE LOOKING AT MOVING FORWARD IN ERCOT, AT LEAST BASED UPON FORECASTS THAT ARE OUT THERE. IN APRIL OF 2026, ERCOT RELEASED THEIR PRELIMINARY LONG TERM LOAD FORECAST FROM 2026 THROUGH 2032. 
          AT THAT TIME, THEY WERE SHOWING BY 2032 THAT THE ERCOT SYSTEM WOULD HAVE OVER 367,000MW OF 
          [01:25:11]
DEMAND, GIVE YOU AN IDEA THAT'S ABOUT A FOUR FOLD INCREASE OVER THE CURRENT DEMAND IN THE NEXT SIX YEARS. IF YOU'VE BEEN READING ANY RECENT ARTICLES AROUND ERCOT FORECASTED DEMAND, YOU MAY BE HEARING SOME THINGS THAT ARE COMING OUT. SOME OF THE COMMITTEES THAT NOW THIS NUMBER IS WELL OVER 400,000MW BY 2032. THAT'S A FIVE FOLD INCREASE IN BASICALLY, I GUESS IT'D BE SEVEN YEARS IF WE GO BACK TO 2025. WHAT'S DRIVING THESE NUMBERS? WELL, WHEN YOU START LOOKING AT THE NUMBERS OF THE FORECAST AND I APOLOGIZE, IT SHOULD SAY DATA CENTER, LARGE LOAD GROWTH, THAT LARGE LOAD GROWTH IS A KEY INDICATOR HERE THAT ERCOT USES. THAT'S DATA CENTERS THAT ARE AT LEAST 75MW OF DEMAND OR GREATER. SO WHEN WE LOOK AT WHAT THE LOAD GROWTH IS, IS ANTICIPATED AGAIN BACK IN APRIL OF THIS YEAR, BY THE TIME YOU GET TO 2032, THIS FORECAST IS SHOWING THAT THE DATA CENTERS WOULD BE 228,000MW. SO ROUGHLY TWO THIRDS OF THE OVERALL DEMAND WOULD BE ASSOCIATED WITH LARGE LOAD DATA CENTERS. LET ME JUST GO AHEAD AND SAY THAT THOSE OF US THAT ARE IN THE INDUSTRY, AND I THINK WHEN I TALK A LITTLE BIT MORE, WE REALIZE THAT THOSE NUMBERS ARE NOT PHYSICALLY POSSIBLE. YOU CANNOT GET THAT AMOUNT OF LOAD ONLINE IN SIX YEARS, JUST PHYSICALLY NOT POSSIBLE. YOU CAN'T GET ALL THE EQUIPMENT AND THE MATERIAL. IT TAKES FIVE YEARS RIGHT NOW FOR YOU TO BE ABLE TO GET A COMBUSTION TURBINE. SO IF YOU'RE GOING TO PUT IN NATURAL GAS PLANTS, YOU MAKE AN ORDER RIGHT NOW, IT'S GONNA BE AT LEAST FIVE YEARS FOR YOU TO BE ABLE TO GET THAT TURBINE MATERIALS, LABOR DESIGN, GETTING THROUGH THE REGULATORY PROCESS. THE OTHER ISSUE THAT WE SEE WITH THESE NUMBERS, AND THAT'S THE REASON WHY I'LL SKIP. I'LL GO AHEAD AND SKIP DOWN TO THAT LAST BULLET. ERCOT KNOWS, AND WE IN THE INDUSTRY KNOW THAT THESE DEVELOPERS ARE OUT BASICALLY LOOKING FOR VARIOUS AREAS IN ERCOT OF WHERE THEY CAN LOCATE THEIR SITES. AND SO THEY'RE WORKING WITH MULTIPLE UTILITIES. THEY'RE NOT COMMUNICATING WITH THE UTILITIES SAYING, I'M LOOKING AT MULTIPLE SITES FOR REALLY, AT THE END OF THE DAY FOR ONE FACILITY. SO YOU'VE GOT LOAD THAT'S GETTING DOUBLE COUNTED BY THE VARIOUS UTILITIES. SO ERCOT IS GOING THROUGH A PROCESS RIGHT NOW WHEREBY IF YOU ARE A DATA CENTER, A LARGE LOAD, YOU'RE GOING TO HAVE TO SAY, ARE YOU LOOKING AT THIS FACILITY AT ANOTHER UTILITY SO THAT WE CAN START TRYING TO IDENTIFY THE DOUBLE COUNTING. SO JUST KIND OF PUT THIS IN PERSPECTIVE. ERCOT LAST YEAR, WHEN THEY WERE COMING IN, SAY, OKAY, WHAT'S A LITTLE MORE REALISTIC ASSUMPTION? AND WE CAN DEBATE ON WHAT REALISTIC IS. THEY REDUCED THEIR FORECAST BY A THIRD. THEY HAVEN'T REDUCED THE CURRENT FORECAST AS FAR AS WHAT WAS RELEASED IN 2026. 
          BECAUSE WHAT THEY'RE WAITING ON IS THIS PROCESS THAT'S BEING DEVELOPED, THAT'S GOING TO REQUIRE MORE FROM THE DEVELOPERS. THINGS LIKE YOU HAVE TO HAVE THE LAND SOME, SOME TYPE OF FORM OR FASHION WHERE, WHERE YOU'RE EITHER OWN THE LAND OR YOU'VE GOT SOMETHING AGREED TO ASSOCIATE WITH THE LAND. ARE YOU LOOKING AT OTHER PLACES AND SO FORTH TO TRY TO START GETTING A MORE REALISTIC VIEW OF WHAT REALLY IS GOING TO BE THE DEMAND ON THE ERCOT SYSTEM? ONE OF THE BIG DRIVERS THAT WE'RE SEEING WITH REGARDS TO DATA CENTERS ARE, IF YOU'VE READ IN THE NEWS, AI DATA CENTERS, I PUT THIS BULLET IN. BE HONEST, IT'S A LITTLE MISLEADING BECAUSE YOU CAN HAVE MEGAWATT DATA CENTERS THAT ARE AI, BUT TYPICALLY THEY'RE GOING TO BE LARGER MEGAWATT, 500, 700, 900. BUT YOU'RE READING IN THE NEWS PROBABLY ABOUT AI, HYPERSCALE DATA CENTERS. AND THESE ARE GIGAWATTS, MEANING 1000MW. AND THAT'S DOUBLE THE LOAD OF OF GPL RIGHT NOW. SO YOU'RE HAVING GIGAWATT CENTERS THAT ARE COMING IN ONE GIGAWATT, TWO GIGAWATTS. THERE'S EVEN AN 11 GIGAWATT FACILITY THAT'S BEING PROPOSED UP IN THE PANHANDLE BY A FORMER GOVERNOR OF THE STATE OF TEXAS. SO THESE ARE SOME MASSIVE DATA CENTERS THAT WE'RE LOOKING AT. SO JUST KIND OF PUT IT IN PERSPECTIVE OF WHAT'S OUT THERE. YOU'VE GOT WHAT I'D CALL THE NORMAL DATA CENTERS, TRADITIONAL DATA CENTERS THAT WOULD BE CLOUD BASED. YOUR ACTIVITIES THAT YOU'RE MAYBE DOING ON YOUR PHONE OR YOUR LAPTOP AT WORK, WHERE YOUR OR YOUR PICTURES THAT YOU'VE GOT THAT YOU WANT TO STORE OUT ON 
          [01:30:06]
THE CLOUD. THOSE ARE THE MORE TRADITIONAL DATA CENTERS, TYPICALLY A SMALLER SIZE. AI DATA CENTERS TYPICALLY ARE THE VERY LARGE ONES THAT YOU'RE SEEING THAT THAT, THAT HAVE SIGNIFICANT IMPACTS ON THE GRID. IF WE CAN GO TO THE NEXT SLIDE, PLEASE. SO THIS WILL GIVE YOU AN IDEA OF WHAT WE HAVE IN GARLAND. SO I THINK MOST OF YOU ON THE COUNCIL ARE AWARE THAT GARLAND POWER AND LIGHT SERVES, AND ALSO ENCORE. SO BOTH OF US SERVE ELECTRICITY IN THE AREA. 
          SO WHAT WE'VE DONE IS WE SPLIT THIS OUT SO YOU CAN SEE WHAT'S IN THE GPL SERVICE TERRITORY AND WHAT'S IN THE ENCORE SERVICE TERRITORY. BUT ALL OF THESE ARE IN THE CITY OF GARLAND. SO CURRENTLY RIGHT NOW WE HAVE TWO EXISTING DATA CENTERS, DATA CENTER A AND DATA CENTER B THAT ARE IN THE GARLAND POWER AND LIGHT SERVICE TERRITORY. AND THEN IN ENCORE, THERE'S AN EXISTING DATA CENTER THAT IS DATA CENTER. D. WE'VE GOT THEIR PROPOSED MAXIMUM DEMAND. THIS IS WHAT THEY TELL US FROM THE STANDPOINT OF ULTIMATELY WHAT THEY BELIEVE. 
          THE FACILITIES THAT ARE OUT ON THEIR SITE WILL ULTIMATELY USE AS FAR AS ELECTRICITY. AND THAT'S UNDER THE MAXIMUM PROPOSED DEMAND. AND THEN WE HAVE CURRENT DEMAND. AND ALL THIS IS IN MEGAWATT HOURS. AND SO YOU CAN SEE THE CURRENT DEMAND OF DATA CENTER A IS 49MW. 
          AND DATA CENTER B IS FIVE MEGAWATTS. AND SO THEY ARE STILL IN THAT PROCESS OF DEVELOPING AND GROWING ON THOSE FACILITIES. THEY HAVEN'T FULLY UTILIZED FROM ELECTRIC STANDPOINT, THEIR ULTIMATE CAPACITY. WHEN WE LOOK AT THE ENCORE SERVICE TERRITORY, THAT PARTICULAR DATA CENTER IS AT ITS FULL LOAD AT 34MW. AND THEN THE YOU DO HAVE ANOTHER PROPOSED THAT'S IN ENCORE, THAT'S A 216 MEGAWATT FACILITY. AND THEN DATA CENTER C IS A PROPOSED FACILITY THAT'S IN THE GARLAND POWER AND LIGHT AREA. SO IN TOTAL, IF YOU LOOK AT FROM A GARLAND POWER AND LIGHT PERSPECTIVE, AS FAR AS WHAT OUR REQUIREMENTS WILL BE, YOU'RE LOOKING AT APPROXIMATELY 500MW OF PROPOSED MAXIMUM DEMAND OF DATA CENTERS THAT WE WOULD BE SERVING. THAT'S IN LINE RIGHT NOW WITH ROUGHLY WHAT WE HAVE AS DEMAND ON OUR ENTIRE SYSTEM. 
          WHEN YOU LOOK AT THE ENCORE, PLUS THE THE GARLAND POWER AND LIGHT IN THE GARLAND AREA, YOU'RE LOOKING AT ABOUT 750MW OF TOTAL MAXIMUM. NOW, WHERE ARE THEY RIGHT NOW? IN TOTAL, ABOUT LESS THAN 90MW. SO THERE'S ALSO THERE'S GOING TO BE ROOM FOR GROWTH AGAIN, WITH THE TWO PROPOSED PLUS THE EXISTING FACILITIES AS THEY AS THEY INCREASE. LET'S GO TO THE NEXT SLIDE AND I'LL PROBABLY COME BACK TO THIS ONE. SO WHAT HAVE WE DONE WITH REGARDS TO THESE LARGE LOAD CUSTOMERS THAT WE HAVE IN GARLAND POWER AND LIGHT SYSTEM? I CAN'T TALK FOR ENCORE. ENCORE CAN CAN DISCUSS HOW THEY'VE THEY'VE GOT THEIR TARIFFS. BUT WITH REGARDS TO G, P AND L WE HAVE A SPECIFIC TARIFF THAT WE HAVE IN OUR RATE ORDINANCE THAT'S ASSOCIATED WITH THESE TYPE OF LARGE LOAD CUSTOMERS SUCH AS DATA CENTERS. SO IT'S APPLICABLE TO CUSTOMERS THAT ARE AT LEAST 20MW OR GREATER IN. HERE'S KEY CURRENT DEMAND OR EXPECTED DEMAND. AND THE EXPECTED DEMAND IS DETERMINED SOLELY BY GARLAND POWER AND LIGHT, NOT THE CUSTOMER. AND THAT WILL BE VERY KEY AS I TALK THROUGH THIS SLIDE OF WHY WE HAVE THAT DETERMINATION OF MAKING THAT THEY SHOULD BE IN THIS TARIFF AND NOT SOME OTHER TARIFF. THE RATE COMPONENTS THAT ARE ASSOCIATED WITH THIS TARIFF, THE ENERGY SIDE, THAT'S THE POWER SUPPLY. THESE CUSTOMERS CAN ENTER INTO AN AGREEMENT UP TO THREE YEARS. THEY'RE ACTUALLY THEY'RE 12, 24 OR 36 MONTH TERMS. THE REASON WHY WE HAVE UP TO THREE YEARS, THERE ARE IRS REASONS THAT YOU HAVE THE THREE YEAR LIMITATION SO THAT YOU DON'T POTENTIALLY PUT IN JEOPARDY YOUR TAX EXEMPT STATUS BECAUSE YOU ARE THERE'S PRIVATE USE OF DOLLARS AND SO FORTH THAT YOU GET INTO POTENTIALLY. SO WE PUT THE CAP AT THREE YEARS IS THE MOST THAT THEY CAN DO A POWER SUPPLY AT SOME TYPE OF FIXED RATE. WE WILL BE GOING OUT TO THE MARKET BUYING THEIR POWER, AND THAT WILL BE WHATEVER THAT POWER IS, WHATEVER IT COSTS THAT WE BUY OFF THE MARKET, THAT'S WHAT THEY PAY. WE HAVE WHAT'S CALLED A CONTRACT FOR DIFFERENCES. AND SO LET'S SAY THEY WANT 50MW OF POWER. WE G GO BUY 50MW. IF IT'S MORE THAN 50MW, THEY ACTUALLY 
          [01:35:02]
USE, LET'S SAY THEY USE 60. THEY WILL BE ON THE HOOK FOR THE ADDITIONAL TEN MEGAWATTS AT WHATEVER WE BUY IT. IF THEY USE LESS THAN THE 50, LET'S SAY THEY USE 40, WHATEVER, WE HAVE TO SELL THAT POWER BACK INTO THE MARKET, WHETHER IT'S A LOSS OR GAIN, IT FLOWS BACK TO THAT CUSTOMER. ESSENTIALLY, WHAT WE'RE TRYING TO DO IS PUT GARLAND POWER AND LIGHT IN A POSITION WHERE WE REMOVE THE PRICE RISK ASSOCIATED WITH THE PURCHASING OF THE ENERGY. OTHER COMPONENTS IN IN THE RATE, ERCOT HAS CERTAIN CHARGES THAT THEY GIVE TO US AND WHATEVER THOSE COSTS ARE THAT ARE ASSOCIATED WITH THAT CUSTOMER, THEY AUTOMATICALLY GET PASSED THROUGH TO THEM. TRANSMISSION ACCESS COST. THESE CUSTOMERS DON'T USE ANY OF THE DISTRIBUTION SYSTEM. THEY ARE REALLY ONLY CONNECTING INTO THE TRANSMISSION GRID. AND SO THOSE TRANSMISSION GRID COSTS THAT WE ALL PAY IN THEIR PROPORTIONAL SHARE, THEY PAY FOR. NOW, ONE THING TO NOTE ABOUT THESE CUSTOMERS, THERE ARE THERE COULD BE QUESTIONS ABOUT, OKAY, IF WE'RE BUILDING FACILITIES TO SERVE THESE CUSTOMERS, HOW ARE THOSE COST RECOVERED? THERE'S TWO DIFFERENT WAYS. IF THOSE COSTS ARE DIRECTLY AND SOLELY RELATED TO ONLY SERVING THAT CUSTOMER, THAT CUSTOMER HAS TO PAY FOR THOSE COST OF CONSTRUCTION AND MATERIALS. IF THOSE COSTS IN SOME FORM OR FASHION HAVE SOME SYSTEM BENEFIT TO THE OVERALL ERCOT GRID, THEN THOSE COSTS GET UPLIFTED TO ALL THE OTHER TRANSMISSION COSTS. AND EVERYBODY IN ERCOT GETS TO PARTICIPATE IN THAT COST SHARING. AND AS I THINK COUNCIL KNOWS, WITH REGARDS TO OUR TRANSMISSION SYSTEM, THOSE COSTS, WE GET THE RECOVERY BACK ON PLUS A RETURN ON TOP OF THAT, WE ALSO HAVE GPL ADMINISTRATION COSTS. IT'S BASICALLY OUR OVERHEAD COSTS REALLY OTHER THAN THE OVERHEAD, WE DON'T HAVE A LOT OF ADDITIONAL COST OF SERVING THESE CUSTOMERS. OUR MARGINS ARE NOT THAT BIG WITH REGARDS TO THESE LARGER LOADS, JUST BECAUSE OF THE NATURE OF THEIR TYPE OF SERVICE. BUT, BUT WHERE THE BIGGER IMPACT FROM A CITY PERSPECTIVE IS AS FAR AS FINANCIALLY AS IT RELATES TO GARLAND POWER AND LIGHT IS THE CITY'S 8% RETURN ON INVESTMENT. SO FOR ALL THAT POWER THAT IS THAT IS ULTIMATELY SOLD TO THESE CUSTOME, THERE'S THE 8% RETURN ON INVESTMENT. GIVE YOU AN IDEA WITH REGARDS TO CURRENT PRICING IN THE MARKET, IF YOU ASSUME ABOUT 100MW OF LOAD, THAT'S ROUGHLY AROUND JUST A LITTLE SHORT OF $4 MILLION A YEAR IN RETURN ON INVESTMENT. IF YOU WOULDN'T MIND GOING BACK TO THE PREVIOUS SLIDE, IF YOU REMEMBER, THERE'S ROUGHLY 500 OF MAXIMUM DEMAND, ASSUMING YOU WERE AT THE 500 MAXIMUM DEMAND, YOU TAKE FIVE TIMES THE 4 MILLION. YOU'RE AT $20 MILLION A YEAR, ROUGHLY IN RETURN ON INVESTMENT ASSOCIATED WITH THESE FACILITIES. IN ADDITION, AND I DON'T KNOW IF, MATT, IF YOU'RE IF YOU'LL BE DISCUSSING IT ANY, BUT ON THE ON YOUR SIDE, THERE'S ALSO FRANCHISE FEES THAT ARE ASSOCIATED WITH THE LEVEL OF CONSUMPTION FOR THOSE TWO DATA CENTERS THAT WOULD BE IN THE ENCORE AREA. SO THERE'S ADDITIONAL FINANCIAL BENEFIT ASSOCIATED WITH THE FRANCHISE FEE FOR THE ENCORE CUSTOMERS. IF YOU COULD GO BACK TO THE NEXT SLIDE, PLEASE, SIR. ALSO IN THE TARIFF, WE HAVE REQUIREMENTS FOR THESE CUSTOMERS THAT IF THERE IS A LOAD SHED EVENT. SO LET'S BRING UP THE UGLY WORD OF WINTER STORM URI. YOU HAVE A LOAD SHED EVENT. THEY HAVE TO THEY HAVE TO PARTICIPATE THEIR PROPORTIONAL SHARE OF WHATEVER IS REQUESTED BY ERCOT FOR US TO REDUCE LOADY. THEY'RE GOING TO HAVE TO REDUCE LOAD BY. IN ADDITION, WE HAVE THEM. THEY HAVE TO HAVE A WHAT'S CALLED A LOW FREQUENCY RESPONSE. SO IF YOU HAVE AN EVENT ON THE SYSTEM WHERE THERE'S A LOW FREQUENCY AND YOU HAVE TO MAKE ADJUSTMENTS WITH REGARDS TO THE DEMAND ON YOUR SYSTEM, THEY HAVE TO PARTICIPATE AS WELL IN THAT. SO IT'S NOT ON THE BACKS OF OUR OTHER CUSTOMERS. FINALLY, EXCUSE ME. FINALLY, WE REQUIRE SECURITY POSTING FOR THESE CUSTOMERS. SO WE'RE GOING OUT AND BUYING POWER FOR THEM OVER X PERIOD OF TIME. WHAT HAPPENS IF THAT CUSTOMER ALL OF A SUDDEN LEAVES AND WE'VE BOUGHT ALL THIS POWER AND WE'RE HAVING TO SELL IT BACK INTO THE MARKET. 
          WHAT WE DO IS WE DO AN ADJUSTMENT CALLED MARK TO MARKET. THAT IS, IF THE MARKET PRICES CHANGE SUCH THAT IF, LET'S SAY, THE MARKET PRICES GO UP ABOVE WHAT WE BOUGHT IT FOR, WE HAVE RISK OR EXPOSURE THAT IF THEY WERE TO LEAVE, WELL, ACTUALLY IN THAT CASE, IF PRICES WENT UP, WE WOULD WE WOULD WANT THEM TO LEAVE BECAUSE WE COULD MAKE MONEY, BUT ASSUME THE PRICES WENT DOWN AND WE WOULD HAVE TO SELL IT BACK INTO THE MARKET BELOW WHAT WE PAID FOR IT. WE DO WHAT SOMETHING'S CALLED MARK TO MARKET, WHERE THEY HAVE TO POST 
          [01:40:02]
SECURITY AND COLLATERAL ASSOCIATED WITH THE DIFFERENCE BETWEEN THE PRICE OF THEIR PRODUCT AND WHERE THE MARKET IS. SO IT GIVES PROTECTION TO THE CITY. IN ADDITION, WE HAVE A REQUIREMENT FOR THREE MONTHS OF SECURITY FOR NON PAYMENT. SO IF FOR SOME REASON THEY WERE TO WALK AWAY, WE HAVE PROTECTION THERE. IF THERE WERE NON PAYMENT BECAUSE WE ARE TALKING ABOUT VERY LARGE DOLLARS. THE REALITY IS IF YOU IF YOU WOULDN'T MIND GOING BACK TO THE SLIDE AGAIN SORRY THAT ROUGHLY 500 MILLION OR 500MW OF POWER, IF YOU LOOK AT TODAY'S PRICES BASED UPON ASSUMING 80% LOAD FACTOR, YOU'RE PROBABLY TALKING ABOUT 225 MILLION TO $250 MILLION OF REVENUE ASSOCIATED WITH THOSE THREE CUSTOMERS IF THEY COME TO THAT LEVEL OF FRUITION. SO WHEN YOU LOOK AT IT FROM THE STANDPOINT OF IF A CUSTOMER WERE TO WALK AWAY, YOU WANT TO MAKE SURE YOU'RE PROTECTED BECAUSE THERE'S A LOT OF MONEY INVOLVED. SO THAT'S WHAT WE'VE DONE FROM A GPL SIDE TO TRY TO MAKE SURE THAT WE ARE TAKING CARE OF THE CITY FROM A FINANCIAL STANDPOINT, BECAUSE THIS IS THERE IS BENEFIT ASSOCIATED WITH IT, BUT THERE'S ALSO RISK ASSOCIATED WITH IT. SO WE'RE GOING IN AND MITIGATING THAT RISK. AND BECAUSE I'M GETTING OLD, I NEED TO GO. SURE. MAKE SURE I GOT ALL MY MY, I THINK I'M, I THINK I'M GOOD, AT LEAST FOR NOW. I'LL KEEP MINE SHORTER BECAUSE IT'S REALLY JUST ONE SIMPLE SLIDE. I WAS ASKED TO PRESENT THE ECONOMIC IMPACTS OF THE DATA CENTERS AS THEY'VE COME ONLINE. YOU CAN SEE IN 2022 THAT THIS IS PROPERTY TAX AND SALES TAX ONLY. SO I'M LOOKING AT JUST DIRECT TAX IMPACT OF DATA CENTERS. DARYL MENTIONED THE 8% ROI AND SOME OF THE PASS THROUGH FROM FRANCHISE FEES. THAT COULD BE SOMEWHERE IN THE 4 TO $5 MILLION RANGE THAT IS NOT BEING SHOWN HERE. THIS IS STRICTLY PROPERTY AND SALES TAX. SO YOU CAN SEE IN 2022, THE DATA CENTERS KIND OF STARTED RAMPING UP. AND BY 2026, WE YEAR TO DATE IN 2026, WE HAVE COLLECTED $13.7 MILLION IN TAX REVENUE FROM DATA CENTERS OVER THE LAST FIVE YEARS. THAT'S $35.5 MILLION. AND YOU HEAR US TALK A LOT ABOUT ROLLING BACKWARDS $5 MILLION A YEAR. 
          IMAGINE WHAT ROLLING BACKWARDS $20 MILLION A YEAR WOULD BE. SO THE DATA CENTERS HAVE FILLED A MASSIVE GAP IN OUR BUDGET. AND WE TALK WHAT IT'S REALLY DOING. WHY, FROM A FINANCIAL PERSPECTIVE, WE WE ENJOY THESE TYPES OF PROPERTY FROM A TAX PERSPECTIVE IS WE TALK ABOUT OUR, OUR TAX BURDEN RIGHT NOW ON OUR SINGLE FAMILY HOMES IS ABOUT 60%. OUR COMMERCIAL PROPERTIES ARE ABOUT 40%. AND MOST METROPLEX CITIES THAT HAVE SWITCHED. YOU TYPICALLY WANT MORE OF YOUR TAX BURDEN ON YOUR LARGE COMMERCIAL PROPERTIES AND COMMERCIAL PROPERTIES. HERE IN GARLAND PER ACRE, BRING IN ABOUT $7,500 PER ACRE. OUR AVERAGE COMMERCIAL PROPERTY. 
          THE AVERAGE DATA CENTER PROPERTY, BRINGS IN FIVE TIMES AS MUCH AS THAT. HOW THEY'RE ABLE TO DO THAT IS BECAUSE THESE ARE FILLED WITH WHAT'S CALLED BUSINESS, PERSONAL PROPERTY. THEY ARE FILLED TO THE BRIM IN SERVERS, AND THERE'S ABOUT $1.2 BILLION WORTH OF SERVERS IN THERE THAT ARE BEING TAXED. SO FROM A STRICT PROPERTY TAX SALES TAX BASIS, WHICH WE ALSO GET THE SALES TAX OFF OF THOSE SERVERS WHEN THEY BUY THEM, THEY ARE THE HIGHEST PER CAPITA PER ACRE VALUE OF PROPERTY TAX THAT WE THAT WE HAVE IN THE CITY. 
          LOOKING FORWARD, WE I DO ANTICIPATE THAT THAT 13.7 MILLION WILL WILL CONTINUE TO GROW AS THEY ARE STILL BUILDING THEIR FACILITIES. AND THERE ARE PROBABLY ALSO A QUESTION LATER ABOUT INCENTIVES. I WILL SAY DURING THIS TIME FRAME, WE DID NOT PAY ANY INCENTIVES TO DATA CENTERS IN 2017. WE DID PROVIDE AN INCENTIVE OF $2.4 MILLION, WHICH WAS ASSOCIATED WITH SOME TAX REBATES, SOME FEE REBATES, AS WELL AS A $1.5 MILLION FOR FIBER OPTIC CABLE. THAT WAS IN 2017. AND THIS TIME FRAME, WE THAT WE HAVE NOT PAID ANY INCENTIVES. I DO ANTICIPATE MAYBE PAYING SOME IN THE FUTURE, BUT TO GUESS THAT AT THIS POINT, I DON'T HAVE A GOOD BALLPARK ON WHAT THAT WOULD BE UNTIL THOSE VALUES COME IN. BUT DURING THIS TIME FRAME, THIS IS $35.5 MILLION THAT HAVE COME DIRECTLY TO THE CITY. THERE ARE THREE THAT WE DID NOT RECEIVE. WE DID NOT HAVE TO COLLECT ANY TAX REBATES DURING THAT TIME FRAME. THERE IS ONE 380 STILL VALID AFTER THIS YEAR. THAT WILL GO ON FOR ANOTHER FOUR YEARS. ALL RIGHT. WE HAVE A FEW QUESTIONS. 
          WE'LL START WITH DEPUTY MAYOR PRO TEM DUTTON. FANTASTIC OVERLOAD OF INFORMATION. WE 
          [01:45:05]
APPRECIATE THAT. GP IS ALWAYS SOMETHING. I THINK THAT THE AVERAGE EVERYDAY CITIZEN, IT PROBABLY GOES OVER MOST OF OUR HEADS. SO I. I OFTEN REFER TO YOU AS NASA BECAUSE I, I KNOW NOTHING ABOUT NASA AND I DON'T KNOW ANYTHING ABOUT ELECTRICITY. SO THANK YOU FOR ALL OF THAT. 
          THAT INFORMATION. I HAVE A COUPLE OF QUESTIONS, BUT I DO WANT TO SAY THAT I THINK THAT THIS THIS PRESENTATION DID PUT A LOT OF THINGS INTO PERSPECTIVE. AND I HOPE THAT MORE PEOPLE ARE WATCHING THIS BECAUSE THE THE TURNOUT IS VERY SMALL TONIGHT FOR AS MANY PEOPLE THAT HAVE EXPRESSED DIFFERENT CONCERNS AND OUTRAGES. AND SO I'M I'M A LITTLE DISAPPOINTED THAT OUR PARTICIPATION IS AS LOW AS WHAT IT IS. I WOULD HAVE THOUGHT THAT WE WOULD HAVE MORE PEOPLE ASKING QUESTIONS. SO IT. ELECTRIC AND WATER IS THE ONE THING THAT WE HEAR SO MUCH ABOUT. AND I DON'T THINK THAT PEOPLE UNDERSTAND THAT WE ARE BUILT OUT. WE DON'T HAVE AN AMAZING AMOUNT OF LAND FOR PEOPLE TO BUILD THESE MASSIVE DATA CENTERS. WE ALREADY HAVE THEM HERE. IT'S JUST THE WAY OF THE WORLD ON THAT. ONE OF THE FIRST SLIDES THERE WAS THE USER, A USER, WHATEVER. YES. CAN YOU TELL US WHAT IS A WHOLESALE CUSTOMER VERSUS A COMMERCIAL USER? SO A WHOLESALE CUSTOMER, THAT PARTICULAR CUSTOMER IS ONE OF OUR MUD DISTRICTS. SO IT'S NOT IT'S, MY GOSH, WHAT IS THE ACTUAL TERM YOU'RE SELLING IT FOR RETAIL UTILITY DISTRICT THAT WE SERVE IN THE CITY OF DALLAS ACTUALLY. OKAY. AND THEN LOOKING AT DOWN HERE, APARTMENT USER A, APARTMENT USER B. WOULD IT MAYBE BE SAFE TO SAY THAT THOSE ARE APARTMENT COMPLEXES THAT USE EVAPORATIVE COOLER SYSTEMS? I CAN'T SPEAK TO THAT SPECIFICALLY, BUT I CAN AND I DID NEGLECT TO TELL YOU THAT ALL OF THESE NUMBERS DO INCLUDE BOTH BUILDING WATER USAGE AS WELL AS IRRIGATION. OKAY. I WOULD, I WOULD BE INTERESTED TO KNOW. HOW MANY APARTMENTS WE HAVE THAT USE THOSE EVAPORATIVE SYSTEMS, BECAUSE IT'S NO DIFFERENT THAN WHAT A DATA CENTER IS USING. AS FAR AS THE PERCEPTION OF USAGE, RIGHT. AND SO I'D BE, I WOULD BE INTERESTED TO KNOW HOW MANY APARTMENTS WE HAVE IN THE CITY THAT USE THAT SAME TYPE OF SYSTEM, SINCE THAT SEEMS TO BE SUCH A LARGE POINT OF CONTENTION FOR PEOPLE, I DON'T THINK THAT PEOPLE UNDERSTAND THERE ARE OTHER TYPES OF BUILDINGS THAT USE THAT SAME COOLING THAT DATA CENTER IS USING. AND SO I JUST MAYBE A LITTLE EDUCATIONAL POINT FOR US. AND THEN, YOU KNOW, WE HAVE A LOT OF RESIDENTS THAT HAVE MADE SOME PRETTY INTERESTING CLAIMS THAT THE DATA CENTER, USING A HIGH VOLUME OF ELECTRIC IS GOING TO MAKE THEIR UTILITY BILLS GO UP. MY, THE COMMON SENSE PART OF MY BRAIN IS LIKE, WELL, HOW MUCH ELECTRICITY JOE USES DOES NOT ACTUALLY AFFECT WHAT MY BILL IS. MY BILL IS DIRECTLY AFFECTED BY WHAT USAGE I HAVE. CAN YOU KIND OF HELP US? AM I ON THE RIGHT TRACK WITH THAT OR. HOW MUCH TIME DO WE HAVE IN LAYMAN'S TERMS? IN LAYMAN'S TERMS. SO SO I'LL, I'LL, I'LL TRY TO TO ANSWER THIS IS AS CONCISE AS I CAN. THAT MAY BE DIFFICULT. AND SO LET'S LOOK FROM THE STANDPOINT OF SPECIFICALLY TO GARLAND RESIDENTS AND I'LL GO G, P, AND L AGAIN, I CAN'T SPEAK FOR ONCOR FROM THE PERSPECTIVE. THERE WILL BE MARGINS THAT WILL BE MADE FROM. FROM THESE CUSTOMERS. AGAIN, THEY'RE NOT LARGE MARGINS, BUT THEY WILL BE SUCH THAT WILL HELP TO OFFSET SOME OF THE COST THAT YOU SEE ON OUR RESIDENTIAL SIDE. THERE WOULD BE SOME BENEFIT THAT YOU'LL RECEIVE FROM TRANSMISSION INVESTMENT, BECAUSE THE RETURN YOU GET THAT WOULD FLOW THROUGH WHERE YOU COULD SEE FROM THE STANDPOINT OF A OF A COST INCREASE THAT'S OUT THERE IN THE MARKETPLACE. IS THAT BECAUSE OF THE ADDITIONAL DEMAND AND SUPPLY, ANYTIME THAT YOU'VE GOT DEMAND THAT IS RISING FASTER THAN 
          [01:50:06]
SUPPLY, YOU WOULD ANTICIPATE SEEING SOME TYPE OF PRICE INCREASE IN WHAT YOU PAY FOR ENERGY. NOW, WHAT'S WHAT'S VERY INTERESTING IS WHEN YOU LOOK AT THE FORWARD MARKETS WHERE IF YOU'RE LOOKING IN THE FUTURE AND YOU'RE WANTING TO BUY POWER, WHAT WE'RE SEEING IN THE SERVICES, WE USE TWO DIFFERENT SERVICES FOR, FOR PRICING AND SOME OF THE LARGE PLAYERS THAT WE'RE AWARE OF, IF SOME OF THEIR PRICE CURVES, WE'RE NOT SEEING THE SIGNIFICANT COST INCREASES THAT YOU WOULD ANTICIPATE. AND TO ME, THAT'S TELLING ME THE MARKET IS NOT NECESSARILY AGREEING WITH ERCOT'S FORECAST, BECAUSE THE REALITY IS THE WAY THE ELECTRIC SYSTEM IS SET UP, YOU CANNOT HAVE MORE DEMAND THAN SUPPLY. IT PHYSICALLY CANNOT OPERATE. 
          SO THAT'S THE REASON WHY ERCOT THROUGH. AND IF SOME OF YOU MAY HAVE HEARD THIS BATCH ZERO PROCESS, IT'S A NEW PROCESS THAT THEY'VE DEVELOPED TO TAKE THE LARGE LOAD CUSTOMERS THROUGH AND ANALYZE THEIR EFFECT ON THE GRID. THIS PROCESS IS PART OF IT IS WHEN IT COMES OUT WITH ITS RESULTS, SAYING WHO IS ELIGIBLE TO INTERCONNECT INTO THE TRANSMISSION GRID? IT WILL NOT BE NECESSARILY THEY WANT, SAY, 200MW OF POWER OF CAPACITY IN ERCOT MAY SAY, NO, YOU'RE ONLY GOING TO GET 50 BECAUSE WE'RE NOT GOING TO PUT OUR SYSTEM AT RISK. AND SO I THINK WHAT YOU'RE SEEING FROM THE MARKET, THE MARKET SAYING, WE KNOW THAT ERCOT IS NOT GOING TO GO AND PUT THE SYSTEM AT RISK BECAUSE OF SOME OF THE THINGS THAT THEY'RE PUTTING INTO PLACE. THE OTHER THING I THINK THE MARKET IS SAYING IS THAT THEY DON'T BELIEVE THE NUMBERS THAT IT'S AGAIN, LIKE I SAID, IT'S PHYSICALLY NOT POSSIBLE TO GET TO THESE NUMBERS IN BY 2032. IT'S JUST IT'S JUST NOT WHAT ARE THOSE NUMBERS GOING TO BE? I DON'T KNOW, IT'S NOT GOING TO BE 400,000MW. SO I THINK FROM THAT PERSPECTIVE, WE'RE NOT SEEING THOSE REAL, YOU KNOW, SUBSTANTIAL COST INCREASES. THEY'RE LESS THAN FIRST COUPLE YEARS OF FORECAST. MANY OF THEM ARE 7%, 4%. YOU GET LATER OUT, IT'S EVEN LESS. BUT THEN WHEN I LOOK AT G, P AND L, WE'VE GONE IN YEARS AGO AND BOUGHT POWER AT VERY CHEAP PRICES, BOTH WITH OUR RENEWABLE PPAS AS WELL AS SOME OTHER BILATERAL ENERGY PURCHASES. WE HAVE OUR UNITS THAT ARE PAID FOR THAT ARE HEDGES AGAINST THE MARKET PRICE. SO WE DON'T HAVE NECESSARILY THE SAME EXPOSURE THAT WOULD SAY SOMEBODY IN THE DEREGULATED MARKET WOULD HAVE. AND TO BE HONEST WITH YOU, WHAT WE SAW FROM THE STANDPOINT OF PRICE INCREASES, THERE WERE MORE PRICE INCREASES AFTER 2023 WITH THINGS THAT ERCOT DID IN THE MARKETPLACE, WHERE YOU MAY REMEMBER WHEN WE HAD THE DISCUSSIONS ABOUT THE CHANGES THEY MADE, WHICH COST ROUGHLY 12 BILLION IN THE MARKETPLACE, THAT HAD A BIGGER COST JUMP TO POWER PRICES THAN WHAT WE'RE SEEING RIGHT NOW IN THE FORWARD MARKETS FOR EVEN ALL THIS DEMAND. SO I'M NOT GOING TO SAY THAT DATA CENTERS DON'T AFFECT THE POWER SUPPLY PRICE, BUT IT'S IT INTUITIVELY, WHEN YOU LOOK AT IT, YOU WOULD THINK THAT THE FORWARD MARKETS WOULD BE REALLY EXPENSIVE. AND RIGHT NOW THEY'RE NOT. AND SO THAT'S SENDING A MESSAGE TO US THAT SOME OF THIS INFORMATION FROM ERCOT AND SOME OF THE THINGS THAT ARE BEING DONE, THE MARKET'S ALREADY STARTING TO PRICE IT INTO IT. AND YOU'RE NOT SEEING AS LARGE OF AN INCREASE. AGAIN, THE BENEFIT FOR GARLAND POWER AND LIGHT CUSTOMERS IS SOME DECISIONS THAT WERE MADE IN THE PAST WE'RE BENEFITING FROM. AND SO YOU'RE NOT SEEING, SEEING THAT TYPE OF INCREASE. AND IF YOU LOOK AT OUR TEN YEAR FORECAST, WE DON'T SHOW ANY TYPE OF RATE RATE INCREASE IN THE TEN YEAR FORECAST FOR US. SO HOPEFULLY THAT HELPS. SORRY FOR THE LONG. NO YOU'RE GOOD. YOU'RE GOOD. SO BASICALLY THE HIGHER OBVIOUSLY SUPPLY AND DEMAND. SO THE DEMAND IS HIGHER. THEN YOU RUN THE RISK OF HAVING THOSE INCREASED RATES. HOWEVER IT DOESN'T MATTER IF THAT DEMAND IS HIGHER IN GARLAND OR IF IT'S HIGHER IN SAN ANTONIO. IT'S THE GRID, THE DEMAND ON THE GRID, NOT ON THE UTILITY OR NOT THE CITY. RIGHT. SO REGARDLESS IF THIS DATA CENTER IS IN GARLAND, PLANO, FORT WORTH, SAN ANGELO, IF THE DEMAND ON THE GRID IS HIGHER, THEN THAT'S WHERE YOU'RE LOOKING AT THE INCREASE. CORRECT. BEAUTIFUL. AND THEN ALSO KIND OF THE SAME THING WITH WATER. W STILL HAVE A USE OR LOSE STRUCTURE WITH WITH WATER. SO AND I DON'T THINK THAT THAT'S PROBABLY COMMON KNOWLEDGE TO MOST P PEOPLE THAT WE STILL HAVE THAT STRUCTURE 
          [01:55:03]
THAT WE, WE PAY FOR A AMOUNT OF WATER REGARDLESS IF WE USE IT OR NOT. CRYSTAL, CAN YOU TELL US WHAT WHAT DOES THAT LOOK LIKE FOR US RIGHT NOW? ARE WE CLOSE TO ARE WE ANYWHERE CLOSE TO USING THE AMOUNT OF WATER THAT WE HAVE TO PAY FOR? SO IN OUR TAKE OR PAY MODEL, WE UTILIZE APPROXIMATELY 90 TO 92% OF OUR ACTUAL TAKE OR PAY QUANTITY, WHICH LEAVES APPROXIMATELY 2 BILLION GALLONS ANNUALLY. SO IN THEORY, IF AS LONG AS WE'RE NOT GOING OVER THAT, YOUR WATER COULD MEAN YOUR WATER BILL WOULD BENEFIT BECAUSE YOU'VE GOT MORE USERS TO DIVIDE IT UP AGAINST. POSSIBLY. NO. WELL, YOU HAVE MORE REVENUE THAT IS COMING IN AS A RESULT OF THAT WATER USAGE. SO YOU'VE GOT WHATEVER THAT 2 BILLION MINUS WHATEVER IS BEING USED IS NOW BEING PAID FOR BY OTHER RESOURCES OUTSIDE OF THE CITY OF GARLAND. DOES THAT MAKE SENSE? YES. I ALSO WANT TO POINT OUT THAT THE TAKE OR PAY IS WE ARE MOVING OUT OF THAT CONTRACT INTO A FIVE YEAR ROLLING AVERAGE. IT'S JUST GOING TO TAKE TIME TO STAIR STEP OUT. SO WHEN CRYSTAL SPEAKS OF THAT 90%, THERE WAS A TIME WHERE WE WERE MUCH LOWER 85. SO WE ARE ROLLING OUT OF THAT. WHEN DO WE EXPECT THAT? I BELIEVE IT TO BE I BELIEVE IT'S 2032. LET ME DOUBLE CHECK THAT NUMBER. THAT SOUNDS GOOD. AND THEN THE OTHER QUESTION THAT I'VE SEEN IS WASTEWATER AND THE CONCERNS ABOUT PEOPLE DISCHARGING OR DATA CENTERS. 
          THAT IS, LET ME TRY THIS AGAIN. IT'S NOT A TALKING DAY FOR ME. DATA CENTERS DISCHARGING INTO STORMWATER OR. YOU KNOW WHAT I MEAN. THAT ONE TOO. CAN YOU KIND OF TOUCH ON IF YOU KNOW WHAT A DATA CENTERS DISCHARGE VERSUS SHERWIN-WILLIAMS DISCHARGE WOULD LOOK LIKE? SO CENTER DISCHARGE INTO OUR WASTEWATER SYSTEM AT THIS TIME IS NO DIFFERENT THAN ANY OTHER OFFICE BUILDING. WE'RE TALKING BASICALLY RESTROOMS AND KITCHEN FACILITIES FOR THE MOST PART. 
          SO OUR INDUSTRIAL AREAS, MUCH MORE INTERESTING. YES. AND DATA CENTERS DON'T EXPLODE. SO THERE'S THAT JUST, YOU KNOW, ANYTIME I CAN REMIND PEOPLE OF OUR NEAR DEATH EXPERIENCE, I LIKE TO JUST DO THAT. ALL RIGHT. THANK YOU GUYS SO MUCH. I THINK THAT YOU'VE HELPED ANSWER A LOT OF QUESTIONS AND PROBABLY GAVE US A LITTLE MORE QUESTIONS LATER DOWN THE ROAD, BUT THANK YOU SO MUCH. THANK YOU MA'AM. AND IF YOU RECALL THE BUDGET PRESENTATION WE HAD REGARDING G, P AND L RATES, THERE WAS NO INCREASE TO GPL RATES IN OUR PROPOSED BUDGET. COUNCILMEMBER LOOKED DARYL, I'M GOING TO MAKE YOU DO YOUR NEXT SLIDE PRESENTATION WITH PICTURES. I'M GLAD TO SEE THAT WATER USAGE FOR THESE CURRENT DATA CENTERS THAT WE HAVE IS VERY, VERY LOW IN COMPARISON TO 129 OTHER BUSINESSES THAT USE MORE. BUT I DO WANT TO GO TO SLIDE FIVE. 
          KIND OF GOT LOST IN YOUR DATA HERE. AND, AND I REALLY WANT TO KIND OF TOUCH ON YOU TALKED ABOUT LARGE LOAD USERS. WHAT IS THE NUMBER WHERE SOMEONE BECOMES A LARGE LOAD USER? WHAT MEGAWATT, 75MW, 75MW. OKAY, SO YOU'LL GO TO SLIDE SIX. SO YES. SO ALL OF THESE EXCEPT FOR C AND D ARE CONSIDERED LARGE LOAD USERS A AND B HAVE ALREADY BEEN APPROVED. THEY ARE ALREADY HERE RIGHT. CORRECT. D AND D IS ALREADY ONLINE. BUT THAT'S STRICTLY ON CORE. SO WHEN YOU TALKED ABOUT IF THERE'S A IF THERE'S A AN INCIDENT LIKE YURI WHERE WE'RE HAVING ROLLING BLACKOUTS, BASICALLY, HOW DOES ONCOR DEAL WITH THOSE CUSTOMERS? SO SO DATA CENTER D OR E ACTUALLY WOULD BE NOT UNDER G P CONTROL DURING THOSE BLACKOUTS. HOW DOES ENCORE HANDLE THEM? 
          [02:00:04]
WE'D HAVE TO LET ENCORE ANSWER THE QUESTION. BUT I WILL SAY WHAT WHAT IS BEING DEVELOPED IN ERCOT FOR LARGE LOADS IS A PROCESS WHEREBY WHAT WE'VE ALREADY DONE VIA TARIFF, A SIMILAR, SIMILAR SETUP WHERE YOU'RE GOING TO HAVE TO RESPOND TO A LOAD SHED AND YOU'RE GOING TO HAVE TO RESPOND TO A LOW FREQUENCY EVENT. THOSE PROCESSES ARE BEING DEVELOPED THROUGH PROTOCOLS AT ERCOT RIGHT NOW. I DON'T BELIEVE THEY HAVEN'T BEEN FINALIZED YET. 
          RIGHT. SO THEY HAVEN'T BEEN FINALIZED YET. BUT WE WE WENT AHEAD AND WELL IN ADVANCE PUT THAT INTO OUR TARIFFS BECAUSE WE WANTED THAT FOR GARLAND POWER AND LIGHT AND MAKE SURE OUR RATEPAYERS AND CUSTOMERS IF THERE WERE A SITUATION THESE DATA CENTERS ARE SHARING IN THAT EXPERIENCE. BUT FROM AN ENCORE PERSPECTIVE OF WHAT THEY'RE CURRENTLY DOING, I WOULD HAVE TO DEFER TO, TO, TO THEM. OKAY. CANOU GO BACK TO SLIDE FIVE, PLEASE? SO THE TOTAL G, P, AND L MEGAWATT USAGE ON THAT ON SLIDE SIX WAS 500. HERE IT SAYS G, P AND L PEAK DEMAND WAS 506 IN 2025. WILL YOU EXPLAINOW THAT 500 FROM THE DATA CENTER LOADS ON ON SLIDE SIX. FALL INTO THAT DEMAND PEAK DEMAND THAT WE SAW IN 2025? WHAT DO THOSE NUMBERS MEAN IN COMPARISON? SO SO IF YOU TAKE THE 506 THIS WOULD HAVE BEEN BEFORE DATA CENTER A, WHICH IS NOW AT 49MW. THEY WERE SINGLED PROBABLY SINGLE DIGITS AT THE TIME OF THE PEAK. SO BASICALLY ALL OF THE PEAK OF THAT 506MW WOULD HAVE BEEN REALLY OUR TRADITIONAL RESIDENTIAL, COMMERCIAL, LARGE COMMERCIAL LOAD. THAT WAS IN, IN, IN SERVICE AT THE TIME. 
          SUBSEQUENT, I THINK IT WAS TOWARD THE END OF LAST YEAR THAT WE SAW DATA CENTER A INCREASE IN THEIR USAGE, AND NOW THEY'RE UP CLOSE TO 50MW. SO IT'S NOT EMBEDDED IN VERY, VERY LITTLE IS EMBEDDED IN THAT 506 NUMBER. SO WHAT DOES THAT MEAN WHEN WE LOOK AT YOU CAN GO TO SLIDE SIX. SO WHAT DOES THAT MEAN FOR US FOR G, P AND L. MOST OF THAT 499MW 500MW IF IT COMES ONLINE WILL BE IN ADDITION TO WHAT YOU SEE IN THE 506. SO IN IN THEORY, ALL OF IT COMES ON. WE WOULD BE INSTEAD OF 500 MEGAWATT PEAK DEMAND, WE'RE NOW AT 1000 MEGAWATT PEAK DEMAND. AS FAR AS THE GARLAND POWER AND LIGHT SYSTEM, AGAIN, RELATIVELY SPEAKING, IF ERCOT IS GROWING AT A FASTER RATE, WE'RE STILL GOING TO BE A SMALL PERCENTAGE OF THE OVERALL ERCOT SYSTEM, WHICH WOULD GET BACK TO DEPUTY MAYOR PRO TEM. DEPUTY MAYOR PRO TEM DUTTON'S COMMENT ABOUT IT DOESN'T REALLY MATTER WHERE THE. THE DATA CENTER LOCATES. IT'S ALL THE GRID THAT'S IMPACTED THE. A SIMILAR SITUATION HERE WHERE OUR LOADS INCREASING. BUT IT MAY NOT BE INCREASING AT THE SAME RATE AS AS ERCOT. BUT HOW MUCH LOAD CAN OUR SYSTEM HANDLE? AND IS THAT DETERMINED BY HOW MUCH ELECTRICITY YOU BUY? SO SO IN IN ERCOT, WHEN WHEN THE MARKET WAS DEREGULATED, THE GENERATION COMPONENT IS SEPARATE FROM SUPPLYING YOUR LOAD. SO THE GENERATION AT OUR PLANTS, SINCE DEREGULATION DO NOT SERVE THE CITY OF GARLAND DIRECTLY. IT FLOWS INTO THE GRID. AND SO ULTIMATELY, ERCOT IS THE ONE WHO IS RESPONSIBLE FOR GETTING THE ELECTRONS OF WHERE THEY NEED TO BE. AND THAT'S EITHER GOING. IT'S TYPICALLY GOING TO BE BY THE GENERATION THAT'S BUILT AND BUILDING TRANSMISSION TO GET IT WHERE IT NEEDS TO GO. 
          AND SO THAT'S WHAT YOU WOULD SEE FROM A CAPACITY STANDPOINT WITH ERCOT, IS DO YOU NEED TO HAVE TRANSMISSION FACILITIES TO BE ABLE TO GET THAT POWER TO THOSE CUSTOMERS? WE HAVE BEEN PUTTING IN FACILITIES, EVEN EVEN BEFORE THE DATA CENTER ISSUE, WE WERE ALREADY SEEING NEEDS ON OUR SYSTEM TO MAKE IMPROVEMENTS FOR CAPACITY BECAUSE AGAIN, THE GRID IS LIKE AN INTERSTATE SYSTEM. AND SO IT'D BE LIKE INTERSTATE 30 IF, IF, IF SOME AREA IS GROWING AND, AND PEOPLE NEED TO GO THROUGH GARLANTO GET TO THAT AREA, 30TH MAY NEED TO BE INCREASED IN GARLAND, EVEN THOUGH THOSE PEOPLE AREN'T STOPPING OFF IN GARLAND. IT'S THE SAME WAY 
          [02:05:04]
THAT'S HAPPENING WITH THE TRANSMISSION SYSTEM. THAT GROWTH THAT'S HAPPENING AROUND THE GARLAND AREA WAS ALREADY CAUSING US TO INCREASE THE CAPACITY ON OUR SYSTEM WITH THE WITH THE DATA CENTERS COMING IN, WE'RE ALSO INCREASING WITH REGARDS TO THE TRANSMISSION, CERTAIN SOME OF THOSE AREAS THAT ARE CLOSER TO THE DATA CENTERS. BUT AS YOU MOVE FURTHER AWAY FROM THOSE DATA CENTERS, YOU'RE NOT SEEING THE THE CONSTRUCTION THAT'S HAPPENING. THEY'RE GOING TO BE MORE ASSOCIATED WITH JUST ELECTRONS FLOWING THROUGH OUR SYSTEM TO OTHER AREAS. SO REALLY, WHEN YOU LOOK AT IT FROM A CAPACITY STANDPOINT, AS IT'S DIRECTLY RELATED TO GARLAND, IT'S MORE ON THE TRANSMISSION SIDE. IT'S NOT ON THE GENERATION SIDE BECAUSE WE DON'T GENERATE THE POWER SPECIFICALLY FOR US. AND, YOU KNOW, AGAIN, AT THE END OF THE DAY, COUNCIL'S DECISION ON BUILDING GENERATION, BUT I WOULD NOT RECOMMEND GOING OUT BUILDING GENERATION TO SERVE THESE DATA CENTERS, BECAUSE YOU WOULD BE LOOKING AT 500MW OF ADDITIONAL CAPACITY IN TODAY'S MARKET. THAT'S ABOUT $1 BILLION. 
          I WOULD BE LOOKING AT BUYING POWER FROM THE MARKET ITSELF AND MARKET PROVIDERS, RATHER THAN GOING AND BUILDING AND HAVING THE DATA CENTER BASICALLY BE ON THE HOOK FOR BUYING THAT POWER OF WHATEVER THAT COST IS, RATHER THAN HAVING THAT AS A LIABILITY TO THE CITY OF GOING AND BUILDING ADDITIONAL GENERATION FOR THIS KIND OF LOAD, CAN OUR CAN ERCOT, RIGHT? CAN ERCOT GIVE US THE CAPACITY NECESSARY TO SERVE THESE DATA CENTERS? SO, SO WHEN YOU SAY CAPACITY ON THE GENERATE, GENERATE, TRANSMIT, EXCUSE ME, CAN ERCOT TRANSMIT THE THE POWER NECESSARY TO INCREASE BASICALLY DOUBLE OUR MEGAWATT LOAD SO THAT I'LL TRY TO BREAK IT DOWN INTO TWO COMPONENTS, THE GENERATION, THE ACTUAL GENERATING OF THE ELECTRONS IS NOT CONTROLLED BY ERCOT. THAT'S FREE MARKET. SO THE MARKET IS GOING TO DEVELOP AND BUILD THE GENERATION. ERCOT'S RESPONSIBILITY IS TO TAKE THAT GENERATION AND GET IT WHERE IT NEEDS TO GO. AND SO THAT'S THE TRANSMISSION SIDE OF THINGS. AND ERCOT WILL TELL US, THEY'LL SAY GARLAND OR ENCORE. YOU NEED TO BUILD ADDITIONAL TRANSMISSION OR INCREASE CAPACITY FOR THOSE ELECTRONS TO GET WHERE THEY NEED TO GO. IF, SAY, WE SAID, NO, WE HAVE SOMETHING THAT'S CALLED A CERTIFICATE OF CONVENIENCE AND NECESSITY THAT GIVES US THE RIGHT TO SERVE IN AN AREA, BUT IT ALSO IS AN OBLIGATION TO SERVE BECAUSE WE GET A RATE OF RETURN. IT'S A SOCIALIZED COST. SO IT'S AN OBLIGATION THAT WE HAVE TO PROVIDE THAT SERVICE. 
          AND IF WE REFUSE TO, THE PUBLIC UTILITY COMMISSION COULD COME IN AND SAY, THAT'S FINE, GARLAND, YOU DON'T DO IT. WE'LL GET SOMEBODY ELSE TO COME IN AND DO IT, BECAUSE THE ELECTRICITY AT THE END OF THE DAY HAS TO GO WHERE IT NEEDS TO GO, AND SOMEBODY IS GOING TO BUILD IT. THE QUESTION WOULD BE, WHO'S GOING TO BUILD IT? I THINK ALSO THE QUESTION IS WHO'S GOING TO PAY FOR IT? SO THAT GOES BACK TO THE QUESTION THAT DEPUTY MAYOR PRO TEM DUTTON. THAT IS A LONG NAME THAT GOES BACK TO WHAT CONSUMERS ARE WORRIED ABOUT. IF YOU'RE HAVING TO BUILD MORE TRANSMISSION LINES TO SERVE, TO CREATE THE ELECTRONS THAT ARE GOING TO BE TRANSMITTED TO THESE DATA CENTERS, WHO PAYS FOR THOSE TRANSMISSION LINES? IF WHO PAYS FOR THAT? SO HISTORICALLY, WHAT YOU WOULD SEE IS IF THE LOAD, WHATEVER DATA CENTER, INDUSTRIAL CUSTOMER, WHOEVER IT MAY BE, COMES IN, YOU WOULD HAVE THE UTILITY EXTEND THAT SERVICE TO THE CUSTOMER AND WHATEVER DIRECT COST ASSOCIATED WITH ONLY THAT CUSTOMER SERVING THEM WOULD BE THE CUSTOMER'S RESPONSIBILITY. AND THEN WHATEVER COST WERE ASSOCIATED WITH BENEFITING THE GRID, THAT COST WOULD ALL BE UPLIFTED TO THE CONSUMERS. ONE OF THE THINGS THAT'S BEING PROPOSED RIGHT NOW IS TAKING AND MODIFYING THAT, THAT SITUATION WHERE IF YOU'VE GOT EVEN THE WHAT I CALL THE SYSTEM BENEFITS, THOSE COULD POTENTIALLY BE PAID FOR BY THE DATA CENTERS AS WELL. THERE'S PROS AND CONS ASSOCIATED WITH THAT. YOU KNOW, THE PRO IS IT THAT YOU WOULD HAVE NO, NO CONSUMERS PICKING UP QUOTE THOSE COSTS IF THAT LOAD DID NOT COME ALONG LIKE THEY SAID THEY THEY WOULD, YOU KNOW, SAY IF THEY SAID THEY'RE GOING TO BE 200MW AND THEY ONLY CAME IN AT 50, THEN SOMEBODY'S 
          [02:10:05]
PICKING UP THAT EXTRA CAPACITY COST. THE PROBLEM WITH THAT IS IF YOU HAVE ALL THESE LARGE LOADS COME IN AND THEY PAY FOR EVERYTHING. THE REALITY IS, IF I'M LOOKING AT I'M AN INVESTOR OWNED UTILITY, WHY AM I IN BUSINESS? THAT'S THE ONLY WAY I CAN MAKE A PROFIT IS BY DOING THOSE INVESTMENTS. SO THERE'S GOING TO BE THIS BALANCE SOMEWHERE ALONG THE WAY THAT YOU HAVE TO LOOK AT THE INTEREST OF THE CONSUMER AND ALSO THE UTILITY SIDE OF THINGS, BECAUSE YOU STILL WANT THE UTILITIES PROVIDING THE SERVICE. SO THERE'S THERE'S THINGS THAT ARE GOING ON DOWN AT ERCOT AND THE PUBLIC UTILITY COMMISSION WITH REGARDS TO SPECIFICALLY THESE LARGE LOADS, HOW DO YOU ADDRESS THESE, WHAT THEY CALL THE SYSTEM BENEFITS THAT ARE ASSOCIATED WITH PROVIDING THEM SERVICE BEYOND THOSE COSTS THAT ARE JUST DIRECTLY SOLELY ATTRIBUTABLE TO THEM, TO PROVIDE THEM SERVICE? I HOPE THAT MAKES SENSE. I KNOW THAT IT'S A COMPLEX. IT'S A VERY COMPLEX ISSUE. I, , I UNDERSTAND THAT, BUT IT, IT DOES SOUND LIKE FEARS OF HIGHER ELECTRICITY RATES ARE SOME, YOU KNOW, THAT THAT SEEMS LIKE A LIKELY THING THAT COULD HAPPEN BASED ON WHAT YOU'VE SAID. IT'S KIND OF LIKE WHEN THE CABLE COMPANIES GO OUT AND LAY NEW FIBER OR WHATEVER, AND THEN THEY PASS THE COST ONTO THE CUSTOMER, AND THEN YOU START START TO SEE RATE HIKES. AND I DON'T KNOW WHAT THEY CALL IT, THEY USUALLY HAVE A LITTLE ACRONYM FOR IT, AND YOU CALL AND YOU'RE LIKE, WHAT IS THIS $3 CHARGE? AND THEY'RE LIKE, OH, WELL, YOU KNOW, THIS IS THE COST TO, TO ALLOW US TO SERVE YOU BETTER. AND THEN YOU'RE LIKE, WELL, I WAS GETTING CRAPPY SERVICE BEFORE. I'M NOT SAYING THAT GPL PROVIDES BAD SERVICE BY ANY MEANS. IN FACT, IT'S QUITE THE OPPOSITE. BUT I THOSE THOSE ARE THE KINDS OF THINGS THAT PEOPLE ARE, ARE CONCERNED ABOUT. IF IF WE'RE DOUBLING OUR DEMAND, DOUBLING IT WHEN THESE ARE AT FULL CAPACITY, HOW DOES THAT AFFECT THE THE CONSUMER, THE RESIDENTS WHO OWN G, P AND L, RIGHT. I MEAN, THE CITY OWNS G, P AND L, I'LL BREAK IT DOWN BETWEEN G, P AND L AND THE REST OF ERCOT. OKAY. SO SO IF WE JUST FOCUS ON G, P AND L BECAUSE AGAIN, I CAN'T SPEAK FOR ONCOR, JUST G, P, AND L FROM THE STANDPOINT OF MAKING TRANSMISSION INVESTMENT, IT ACTUALLY IS BENEFICIAL AT THE END OF THE DAY FOR OUR RATEPAYERS WHEN WE ARE MAKING THE TRANSMISSION INVESTMENT, OKAY, BECAUSE WE GET THE COST RECOVERY DOLLAR FOR DOLLAR OFF EVERYTHING THAT WE PUT IN AS FAR AS AN ASSET PLUS A RETURN RIGHT NOW, OUR RATE OF RETURN THAT THE PUBLIC UTILITY COMMISSION GIVES US IS 8.46%. 
          SO WE'RE ACTUALLY MAKING MONEY OFF OF THOSE INVESTMENTS. SO FROM A, FROM A GARLAND POWER AND LIGHT PERSPECTIVE. YES, THAT'S, THAT'S SOMETHING THAT'S BENEFICIAL WHEN WE'RE MAKING THAT INVESTMENT AS IT RELATES TO OUR CUSTOMERS. CONVERSELY, WHEN OTHER TRANSMISSION SERVICE PROVIDERS ARE MAKING THESE INVESTMENTS ELSEWHERE AND WE'RE NOT GETTING THAT BENEFIT, WE DO GET TO PAY FOR THAT. WE AS GARLAND POWER AND LIGHT RATEPAYERS. AND SO IF YOU GO BACK IN TIME WHEN WHEN GARLAND POWER AND LIGHT MADE THE MOVE INTO INVESTING MORE IN TRANSMISSION AND EXPANDING THE TRANSMISSION INVESTMENT, THE REASON WHY WE DID THAT IS BECAUSE WHAT WE SAW IS ALL THIS TRANSMISSION INVESTMENT HAPPENING OUT IN THE WEST TEXAS AREA, BILLIONS OF DOLLARS BEING SPENT. AND WE WERE GOING WE, AS THE RATEPAYERS OF POWER AND LIGHT, WERE GOING TO GET TO PAY FOR IT. WE SAID, WE NEED SOME WAY TO TRY TO OFFSET THAT COST. 
          SO WHAT WE DID IS WE STARTED INVESTING IN TRANSMISSION ELSEWHERE IN THE STATE, AND THAT ADDITIONAL REVENUE THAT WE RECEIVE, THAT RETURN, WE WERE ABLE TO THEN OFFSET THAT COST INCREASE THAT WE GOT FROM ALL THE OTHER TRANSMISSION SERVICE PROVIDERS WITH WHAT THEY WERE BUILDING. SIMILAR SITUATION YOU'VE GOT HERE IS YOU'RE TRYING TO MAKE THAT INVESTMENT AS GARLAND POWER AND LIGHT TO BE ABLE TO OFFSET WHAT YOU'RE SEEING FROM OTHERS THAT ARE HAPPENING. AND THAT'S THE REASON WHY I SAID IT'S A PRO AND CON THING WITH REGARDS TO IF THE DATA CENTERS PAY FOR EVERYTHING ON A SYSTEM BENEFIT SIDE, THERE'S THERE'S PROS AND CONS TO IT FROM A GARLAND POWER AND LIGHT PERSPECTIVE. IT REALLY DEPENDS UPON WHAT THAT RELATIONSHIP IS BETWEEN WHAT THE OTHER UTILITIES ARE DOING VERSUS WHAT WE'RE DOING. NOW. 
          IF YOU LOOK OVERALL FROM A FROM A ERCOT PERSPECTIVE, IF THE LOAD DOES NOT SHOW UP LIKE THEY FORECAST, THEN YES, THOSE RATES WILL GO UP ON THE TRANSMISSION SIDE. AND THAT'S SOME OF THE 
          [02:15:05]
THINGS THAT ARE BEING DISCUSSED AT THE PUBLIC UTILITY COMMISSION. WHAT ARE SOME WAYS TO HELP MITIGATE THAT? ONE WAY THEY'VE TALKED ABOUT IS THAT HAVING THE THESE DEVELOPERS POST-SECURITY. AND UNTIL SUCH TIME AS THEY MEET THE DEMANDS THAT THEY SAID THEY WERE GOING TO MEET, AND IF YOU DON'T MEET IT, THEY PULL FROM THAT SECURITY AND USE THAT TO OFFSET THE COST TO THE RATEPAYERS. THAT'S ONE CONCEPT THAT'S BEING DISCUSSED. BUT THIS IS SOMETHING THAT IS FROM THE POLITICAL SIDE OF THINGS THAT'S BEING DISCUSSED AT THE STATE LEVEL WITH THE LEGISLATURE, AS WELL AS PUBLIC UTILITY COMMISSION, IS HOW CAN YOU MAKE SURE, AS IN THEORY, IF THE LOAD ALL SHOWS UP FOR THE DATA CENTERS, THEN THEY PAY THEIR FAIR SHARE AND YOU'RE NOT HAVING THE INCREASE. BUT IF THEY THAT LOAD DOESN'T SHOW UP AS FORECASTED, THEN YOU COULD HAVE A SITUATION WHERE OTHER CUSTOMERS ARE HAVING TO PICK THAT, THAT COST UP. SO THAT'S SOMETHING THAT IS BEING DISCUSSED. OKAY. THANK YOU. ALL RIGHT. THANK YOU MA'AM. I'M MORE AMAZED THAT YOU WERE ABLE TO CALL SOMEONE AT YOUR CABLE COMPANY AND GET THEM TO EXPLAIN THAT $3 CHARGE TO YOU OUT OF EVERYTHING. COUNCIL MEMBER THOMAS. YES. BACK TO THE SLIDE FOUR, PLEASE. SO THE LOOP COOLING SYSTEM, THAT'S THE SAME AS MY CAR'S RADIATOR. IT'S NOT PUTTING OFF ANY THERE'S NOT IT'S NOT NOT PUTTING ANY WATER IN. IT'S NO NO WATER COMING OUT UNTIL WE HAVE TO DO THAT MAINTENANCE PROCESS. AND SO YOU SAID THAT IF THEY, THEY, THOSE STATE ASSISTANCE SYSTEMS USE 300,000 GALLONS. IF YOU HAD TO DRAIN IT TO ZERO AND FILL IT ALL BRAND NEW, THAT WOULD BE 300,000. I THINK THAT'S WHAT YOU SAID ON, ON AVERAGE. AND SO HELP ME SQUARE THAT WITH THE $6 MILLION USAGE, THE 6 MILLION GALLON OR 7 MILLION GALLON USAGE ON. NUMBER ONE, 29 THERE ON SLIDE THREE, WHERE'S THE REST OF THOSE MILLIONS GOING? IRRIGATION. THAT'S JUST THE IRRIGATION SYSTEM. USE 300 000 FOR THE FOR THAT AND 6,600,000 IS JUST A LOT OF THE GRASS AND TREES THAT WE REQUIRE THEM TO HAVE. IS THAT RIGHT? THE MAJORITY OF THIS WAS FROM THE IRRIGATION METERS. OKAY. VERY GOOD. I THINK THAT'S AN IMPORTANT POINT TO MAKE, IS THAT IT'S NOT THE DATA CENTER INSIDE THE BUILDING USING THIS WATER. IT'S THE TREES IN THE GRASS OUTSIDE THE BUILDING THAT'S USING A LOT OF THAT WATER. OKAY. VERY GOOD. I WANTED TO MAKE SURE THAT WAS I THOUGHT THAT WAS THE CASE. I JUST WANT TO MAKE SURE, MAKE SURE THAT WAS MADE. AND THEN, MATT, ON YOUR SLIDE EIGHT, YOU SAID PROPERTY. SO DOES PROPERTY. THERE INCLUDE AD VALOREM TAX AND BUSINESS PERSONAL PROPERTY SERVERS. SORRY. BUSINESS PERSONAL PROPERTY IS THE SERVERS. THE ACTUAL FACILITY ITSELF IS REAL PROPERTY. OKAY. THE SALES TAX IS FROM THE SALE. 
          WHEN WE WHEN THEY PURCHASE THE SERVER WE GET SALES TAX. I GET THAT. YEAH. BUT THERE'S TWO OTHER PROPERTY TAXES, RIGHT? THERE'S REAL PROPERTY. AND THEN THERE'S JUST THE BUILDING ITSELF. IT WAS EMPTY. THEY WOULD STILL HAVE TO PAY TAX ON THAT BUILDING. CORRECT. AND THEN AND THEN ONCE THEY FILL IT UP WITH SERVERS, THEY PAY TAX EVERY YEAR ON THOSE SERVERS THAT ARE IN THE BUILDING, JUST LIKE THEY DO PROPERTY TAX EVERY YEAR ON THE BUILDING. CORRECT. 
          AND I BELIEVE THE SPLIT IS ROUGHLY 250 MILLION REAL PROPERTY, WITH THE REST BEING ALL BUSINESS PERSONAL PROPERTY, WHICH THAT IS INFLATED EVEN MORE AS WE MOVE INTO THIS YEAR'S BUDGET, AS MORE, MORE FACILITIES COME ONLINE. OKAY, SO YOUR 13.7 NUMBER INCLUDES PROPERTY TAX ON THE BUILDING AND BUSINESS, PERSONAL PROPERTY AND SALES TAX AND SALES TAX. 
          BUT THOSE TWO KINDS, BECAUSE THERE'S THREE. CORRECT. TECHNICALLY. AND SO I WANTED TO I MEAN, YOU JUST LIST TWO. AND BUT PROPERTY INCLUDES TWO TWO DIFFERENT KINDS OF PROPERTY TYPE OF PROPERTY. OKAY. VERY GOOD. I JUST WANT TO MAKE SURE I WAS CLEAR ON THAT. AND THAT'S A ANOTHER POINT THERE. OKAY. VERY GOOD. THANK YOU. THANK YOU MAYOR. THANK YOU SIR. COUNCIL MEMBERS. THANK YOU. MAYOR. OKAY, SO DATA CENTERS, OF COURSE, IT'S A LOT OF CONTROVERSY AND YOU'RE EDUCATING US. SO THANK YOU SO MUCH. I'M LIKE, LET'S SEE, WHAT IS IT, DEPUTY MAYOR CARISSA? OKAY. I'M LIKE HER. I'M I'M LIKE, I DON'T KNOW. I JUST WANT TO KNOW IF THE ELECTRIC BILLS ARE GOING TO GO UP. THAT'S WHAT I WANT TO KNOW. AND YOU KIND OF EXPLAIN THAT BROKE THAT DOWN REALLY QUICK. IF YOU CAN GO TO SLIDE SIX. HOW LONG HAVE THESE DATA CENTERS BEEN HERE IN GARLAND? HOW LONG HAVE THEY BEEN HERE? DOES ANYBODY KNOW WITHOUT GIVING ABOUT HOW LONG? LIKE FIVE YEARS. THREE YEARS. TWO OF THEM 2017. OKAY. 2017. THEY'VE BEEN HERE 
          [02:20:05]
SINCE 2017. THEY'VE BEEN IN GARLAND SINCE 2017. OH, AND WE HAVEN'T REACHED OUR MAX. IS THAT OKAY? I JUST WANT TO MAKE SURE I HAD THAT RIGHT. AND THEN THE ONLY ONE THAT HAS REACHED THE MAX IS NOT EVEN IT'S ONCOR, NOT OURS. IS THAT CORRECT? AND SINCE 2017, WITH THEM BEING HERE, HOW MUCH HAS OUR ELECTRICITY RISEN? I'M JUST WONDERING HOW LONG, HOW MUCH HAS IT RISEN? HOW HOW HIGH HAS OUR ELECTRIC BILL BEEN GOING UP EACH YEAR SINCE 2017? DO YOU KNOW, I'D HAVE TO GO BACK AND LOOK, BUT IT WOULDN'T HAVE ANYTHING TO DO WITH THE DATA CENTERS. IT WOULD HAVE TO DO WITH OTHER. AND 2023 HOTTEST SUMMER ON RECORD, RIGHT? AT THE SAME TIME THAT ERCOT CHANGED THE WAY THAT THEY WERE DOING BUSINESS, AND THEY INTRODUCED A NEW PRODUCT, THE $12 BILLION EFFECT THAT RIGHT THERE CHANGE EVEN AFTER WINTER STORM URI, YOU WOULD THINK THAT THERE WOULD BE A BIG INCREASE. THERE WAS NOT A BIG INCREASE IN THE MARKET. IT WAS AFTER 2023 THINGS THAT HAPPENED WITH ERCOT. THAT'S WHEN YOU SAW THE BIG CHANGE IN THE RATES IN ERCOT. OKAY. SO IT WAS NOT BECAUSE OF MASSIVE ENERGY PULLED FROM THE DATA CENTERS? NO. OKAY. I WANT TO MAKE SURE THAT, OKAY, BECAUSE I, YOU HAVE TO BREAK THIS DOWN FOR ME. AND THEN WHEN THERE'S ANOTHER QUESTION THAT SOUNDS REALLY DUMB. SO I DO APOLOGIZE WHEN WE HAVE THAT OUTAGE, LIKE WHEN, YOU KNOW, LIKE HAPPENED. THANK YOU LAST NIGHT. THANK YOU FOR TO YOUR CREW REALLY QUICK. Y'ALL WORKED REALLY HARD. WE WERE DOZING AND Y'ALL WERE STILL WORKING. SO THANK YOU FOR THAT. WHEN WHEN THINGS HAPPEN, LIKE OUTAGES AND SO ON THE DATA CENTERS, WHO DOES IT? IS THERE SOMEONE THAT YOU'RE GOING TO SELECT THAT ROLLS OUT FIRST? OR ARE YOU GOING TO SAY, OH, THE CONSUMER OR THE DATA CENTER? IS THERE LIKE A SYSTEM? I THINK YOU MIGHT HAVE ANSWERED THAT, BUT IT WAS JUST ALL MIXED IN THERE. 
          SO WHO WOULD GO OUT FIRST IF THE STORM HAPPENED AGAIN? SO IT'S PROPORTIONAL. OKAY. 
          BECAUSE WE CAN'T BE DISCRIMINATORY. BUT THEN WE WOULD ALSO HAVE IN OUR SYSTEM, WE'VE GOT AUTOMATIC LOAD SHED SET UP IN OUR SYSTEM. SO WE WOULD PROGRAM WHATEVER OUR AND I CALL OUR PORTION. WE'LL. AND WE'LL CALL DATA CENTER THEIR PORTION, OUR PORTION OF WHATEVER THE REQUEST IS WOULD BE PUT INTO THAT SYSTEM. AND THEN IT WOULD BE ROTATED THROUGH OUR AUTOMATIC LOAD SHED ON OUR VARIOUS FEEDERS. AND THEN THEY WOULD HAVE THEIR RESPONSIBILITY OF THAT, THEIR PORTION TO COME DOWN FROM THE STANDPOINT OF, OF WHATEVER ERCOT'S REQUIRED. SO IF IT'S, LET'S SAY IT'S 50MW THAT ERCOT SAYS YOU NEED TO COME DOWN AND THE DATA CENTERS MAKE UP HALF OF OUR OVERALL LOAD, THEY'RE GOING TO HAVE TO COME UP WITH 25MW, AND THEN THE REST OF THE SYSTEM WOULD COME UP WITH THEIR 25MW. SO THAT WAY IT'S PROPORTIONATELY SHARED TO THE LOAD. AND YOU'RE NOT IN A DISCRIMINATORY TYPE OF SITUATION WHERE YOU'RE SAYING, I'M ONLY GOING TO PICK THAT PARTICULAR TYPE OF CUSTOMER. 
          YES. AND THEN ONE MORE THING. AND THEN I JUST WANT TO MAKE SURE. SO ON CORE SERVICES, GARLAND AS WELL. CORRECT. AND IF A DATA CENTER IS PROPOSED HERE, IT'S EITHER GOING TO BE G, P AND L OR ENCORE. REGARDLESS, IT IS ENCORE SOURCE THEIR OWN WATER OR DO THEY GET WATER FROM WHERE DO THEY GET THEIR WATER FROM? WE DON'T KNOW. THAT'S A QUESTION FOR THEM, RIGHT? IF IT'S IN THE IF IT'S IN THE IF IT'S AN ENCORE CUSTOMER, IT'S AN ENCORE CUSTOMER INSIDE THE CITY. I'M NOT AWARE OF ANY ANY ALLOWANCES FOR A CUSTOMER GETTING WATER FROM SOME OTHER SOURCE BESIDES THE CITY OF GARLAND. OKAY. RIGHT. YEAH, THOSE ARE MY NOTES. AND THEN THEN THANK YOU TO YOUR CREW. AND THEN THANK YOU, MAYOR. MAYOR PRO TEM. THANK YOU, MR. MAYOR, AND THANK YOU. THREE. MY GOODNESS, WHAT A REPORT THIS IS. IT TOOK A LITTLE TIME TO PUT THISIS TOGETHE THANK YOU FOR YOUR STAFF PUTTING THE TIME INTO THIS. AND AND THANK YOU TO THE COUNCIL FOR, FOR HAD SOME VERY GOOD QUESTIONS. MOST OF MINE HAVE ALREADY BEEN ANSWERED. 
          IT'S YOU KNOW. THE WATER, IT'S BEING USED MOSTLY ON THE LAWN. IT'S VERY OBVIOUS. AND THE. AS FOR POWER, FROM WHAT I UNDERSTAND, BEFORE ANY ONE OF THESE. THESE DATA CENTERS ARE ACTUALLY APPROVED, ERCOT HAS TO ACTUALLY APPROVE THE LOAD THAT THEY ARE PLANNING TO INTRODUCE. 
          CORRECT. FOR FOR LARGE LOAD CUSTOMERS. SO 75MW AND ABOVE ERCOT HAS TO APPROVE WHETHER OR NOT THAT THEY CAN BE INTERCONNECTED TO THE GRID. OKAY. AND OUR PROPOSED DATA CENTERS C AND E ARE DO THEY HAVE THEY BEEN APPROVED FOR THEIR LOAD TO BE PUT ON THERE, 
          [02:25:04]
OR ARE THEY STILL PROPOSED AS IN THEY'RE IN CONSTRUCTION OR THEY'RE PROPOSED AS IN THERE A POSSIBILITY WAITING FOR THE APPROVAL. SO FROM A ERCOT PERSPECTIVE, DATA CENTER C DOES NOT GO THROUGH THE BECAUSE IT'S NOT 75MW. IT'S BELOW THAT. WITH REGARDS TO DATA CENTER, CENTER E, IT IS BEING IT'S BEEN SUBMITTED MAYBE, I DON'T KNOW, A YEAR AGO OR SO APPROVED, BUT NOW IT HAS TO GO THROUGH THIS BATCH ZERO PROCESS. SO BASICALLY ERCOT RE RESETTING EVERYTHING BECAUSE BACK FOR MANY YEARS THE WAY ERCOT DID THESE TT IT WOULD BE INDIVIDUAL DATA CENTERS, INDIVIDUAL LARGE LOADS JUST DON'T SEE DATA CENTERS, LARGE LOADS BECAUSE IT COULD BE ANY IT COULD BE A LARGE REFINERY. THOSE LARGE LOADS WOULD BE INDIVIDUALLY REVIEWED AND THEN THE GRID WOULD BE LOOKED AT IN THAT AREA TO SEE IF THERE'S ANY IMPROVEMENTS. AND THAT PROCESS WORKED VERY WELL WHEN YOU ONLY HAD A FEW LARGE LOADS COMING IN ON AN ANNUAL BASIS. NOW YOU HAVE MANY COMING IN AND THE PROBLEM IS AS SOON AS YOU FINISH STUDYING ONE, YOU HAVE ANOTHER ONE COMES ON AND IT IMPACTS THIS LARGE LOAD THAT WAS GOING TO BE COMING IN. SO YOU GOT TO REDO THE STUDY FOR THIS LARGE LOAD. AND THEN WHILE YOU'RE WAITING, ANOTHER ONE COMES IN. AND SO WHAT THEY WERE SEEING IS THAT THEY'RE HAVING TO REDO STUDIES CONSTANTLY. AND THEY SAID, WELL, LET'S STOP THIS. WE'RE GOING TO BATCH EVERYBODY TOGETHER THAT MEETS CERTAIN CRITERIA AND WE'RE GOING TO RUN THE ANALYSIS BASED UPON THOSE THAT ARE IN BATCH ZERO. AND THEN WE'RE GOING TO SEE WHO CAN BE INTERCONNECTED AND AT WHAT LEVEL. THAT'S WHAT'S UNIQUE ABOUT THE SITUATION THAT WE'RE TALKING ABOUT NOW. IT'S NOT JUST, YOU KNOW, YOU HAVE 200MW OF CAPACITY IMMEDIATELY. IT MAY BE THAT ERCOT SAYS, NO, YOU HAVE 50. AND THEN ONCE WE SEE CAPACITY INCREASE IN THE AREA ABLE TO SERVE, THEN MAYBE YOU GO UP TO THE NEXT LEVEL AND THEN THE NEXT LEVEL. AND SO IT'S A THIS IS KIND OF A GAME CHANGER FOR US FROM THE STANDPOINT OF THIS NEW PROCESS. 
          SO SO WE'LL SEE THIS DATA CENTER C HAS ALREADY BEEN APPROVED FROM THE OLD PROCESS. 
          NOW WHAT'S GOING TO HAPPEN WITH BATCH ZERO. AND THE EXPECTATION WOULD BE GIVEN THAT THEY'VE ALREADY BEEN APPROVED, THAT THEY WILL BE APPROVED IN, IN BATCH ZERO. BUT THE QUESTION WILL BE AT WHAT MEGAWATT LEVEL. AND THAT THAT'S A THAT'S A UNKNOWN. IT COULD BE THE FULL AMOUNT. IT COULD BE SOMETHING SOMETHING LESS SOMETHING IN BETWEEN ON DATA CENTERS A AND B, SINCE THEY'RE NOT AT PROPOSED CAPACITY YET. HAVE WE DO WE ALREADY HAVE. SINCE THOSE ARE IN GALS TERRITORY, DO WE ALREADY HAVE ASSETS IN PLACE TO SUPPORT THAT LEVEL OF POWER? YES. OKAY. AND LET'S SEE. I THINK THAT ERCOT WAS TALKING ABOUT THAT FOR LOADS OVER 250MW THAT THEY'RE TALKING ABOUT. RECOMMENDING OR REQUIRING BRINGING YOUR OWN POWER TO THE PROPOSAL. IS THAT TRUE? ALSO, I HAVEN'T HEARD THE MEGAWATT DELINEATION, I DON'T. TOM, HAVE YOU I HAVEN'T HEARD THE MEGAWATT DELINEATION, BUT THERE IS THERE IS DEFINITELY FOR THESE I WOULD CALL THE HYPERSCALERS THESE GIGAWATT AND MORE FOLKS. I THINK THERE'S DEFINITELY. YOU'RE SEEING THIS PUSH TO BRING BRING YOUR OWN RESOURCES. AND I MEAN, I MEAN, HONESTLY, WE START LOOKING AT IT FROM STANDPOINT OF TIMING AND GETTING, GETTING ON. AND IF YOU HAVE LIMITATIONS ON CAPACITY, GETTING TO THE GRID, YOU KNOW, IF YOU'RE IN THAT LINE OF BUSINESS, IT MAY MAKE SENSE TO BRING YOUR OWN GENERATION SO THAT YOU GO AHEAD AND HAVE THE FACILITIES IN PLACE. BUT I'M NOT AWARE OF A OF A MEGAWATT SPECIFIC, SPECIFIC NUMBER. THAT'S OKAY. BUT THOSE HYPERSCALERS, SO TO SPEAK, IF THEY DO BRING THEIR OWN POWER, THOSE ASSETS WOULD NOT BE SOMETHING THAT THE THE PEOPLE OF TEXAS RATEPAYERS WOULD BE PAYING FOR. IT WOULD BE PAID FOR BY THEIR OWN PROJECT. CORRECT. OKAY. AND I'D LIKE TO THANK YOU FOR THE CAREFUL CONTRACT THAT YOU HAVE CREATED. GPL HAS FOR THESE LARGE LOAD CUSTOMERS. IT LOOKS LIKE IT'S WELL THOUGHT THROUGH SO THAT TO MINIMIZE RISK FOR THE FOR THE PEOPLE OF GARLAND. AND, YOU KNOW, THAT'S I THINK THAT'S ALL THE QUESTIONS THAT I HAVE. BUT I DO JUST WANT TO EXPRESS. THANKS AND, AND THANK YOU FOR THE FOR THE CITIZENS OF GARLAND, BECAUSE THIS IS A VERY EDUCATING EXPERIENCE. THANK YOU. THANK YOU. COUNCIL MEMBER MOORE. 
          [02:30:02]
THANK YOU, MR. MAYOR. FIRST OF ALL, I JUST WANT TO SAY I. I FEEL SO MUCH BETTER AFTER LISTENING TO THIS PRESENTATION TONIGHT. AND AND I FEEL GOOD BECAUSE WHAT YOU'VE DONE, YOU'VE ANSWERED. DID YOU RECEIVE THOSE ALL THOSE QUESTIONS THAT I GAVE TO THE CITY MANAGER TO SEND OVER TO YOU? THAT WAS A LIST OF QUESTIONS THAT MUST HAVE BEEN 30, 40 DIFFERENT QUESTIONS AS IT RELATES TO THIS ISSUE. AND I HAVE THIS SAYING THAT I'VE HAD MOST OF MY LIFE, AND THAT IS WE MAKE OUR DECISIONS BASED ON THE INFORMATION THAT WE HAVE AVAILABLE. BUT ANOTHER ONE I HAVE IS MY PEOPLE ARE DESTROYED FROM A LACK OF KNOWLEDGE. THESE ARE THE SETTINGS RIGHT HERE THAT HELP US TO GET THAT INFORMATION THAT WE NEED. I REALLY FELT THAT TONIGHT WAS GOING TO BE AN EVENING THAT WE WOULD HAVE SO MANY PEOPLE OVER THERE IN THE, IN THE AUDIENCE, AND THAT THEY'RE GOING TO BE 250,000 PEOPLE TONIGHT. THERE IS AT LEAST 100,000 THAT ARE WATCHING THIS SESSION. BUT AS A MATTER OF FACT, PROBABLY THE ONE PERSON THAT SENT ME THOSE 30 QUESTIONS, ALONG WITH TEN OTHERS, ARE PROBABLY THE ONES WHO ARE WATCHING. AND WE WILL STILL HAVE TO ANSWER SOME OF THE QUESTIONS THAT THEY HAVE, BECAUSE THE QUESTIONS THEY HAVE E REAL. YOU SIMPLIFIED TONIGHT. YOU'VE SHOWN US TONIGHT A GOOD CHECK AND BALANCE SYSTEM CHECK AND BALANCE SYSTEM THROUGH G, P, AND L, JUST THE THREE OF YOU WHO ARE SITTING THERE RIGHT NOW. I TALKED TO MY FELLOW COUNCIL MEMBER WHO'VE JUST COME ON TO COUNCIL ALL THE TIME, AND I TELL THEM THE FIRST TWO YEARS THERE IS A TREMENDOUS LEARNING CURVE. IT'S LIKE A WATER HOSE BEING. AND YOU'RE BEING DRENCHED. WE'RE JUST NOW COMING TO THE UNDERSTAND OF REALLY UNDERSTANDING WHAT A MEGABYTE IS OR A MEGAWATT IS, AND SO ON AND SO FORTH. BUT THE KEY IS IF WE KEEP LISTENING, WE HANG HERE LONG ENOUGH. THE INFORMATION WE HAVE AVAILABLE TO US WILL INDEED HELP US TO BE ABLE TO MAKE THE DECISIONS THAT NEED TO BE MADE. FOR EXAMPLE, HOW MANY DATA CENTERS DO WE HAVE IN GARLAND PRESENTLY? THREE. WHAT? THREE. THREE. WE HAVE THREE DATA CENTERS, AND WE'VE JUST TAKEN HOW MANY HOURS TO GO OVER THIS INFORMATION AS IT RELATES TO EXPLAINING THEM. THAT IS THE IMPORTANCE OF WHAT A CITY COUNCIL AND WHAT A CITY IS TRULY ALL ABOUT, THAT VERY FEW PEOPLE WHO DON'T HAVE THE INFORMATION WHO. AND THAT'S ONE OF THE THINGS THAT I THINK THAT WE'RE FIGHTING TONIGHT. SEE, WE CAN CONTINUE TO TALK ABOUT WHAT ERCOT. AND I ALSO THOUGHT ABOUT THAT. MAYBE WE NEED TO HAVE ERCOT COME AND TALK TO US. YOU KEEP SAYING, YEAH, I CAN'T ANSWER THAT. ERCOT HAS TO ANSWER THAT. MAYBE, HEY, WE NEED YOU TO COME AND TALK TO US AND TELL US WHAT. HONESTLY, NO, WE DON'T, BECAUSE YOU UNDERSTAND ERCOT ENOUGH TO GIVE US THE INFORMATION THAT WE NEED, THAT PROBABLY WE'D BE MORE FRUSTRATED WITH THEM COMING THAN NOT THEM COMING. OKAY. BUT THE KEY STILL BECOMES OUR CITIZENS THOUGH. AND THAT'S WHAT I TRY TO DO. WHAT I TRY TO DO IS SIMPLIFY THIS THING, KEEP IT AS SIMPLE AS I POSSIBLY CAN. 
          WE'RE TALKING ABOUT THREE DATA CENTERS IN THE CITY OF GLAND. AND WITH THE INFORMATION THAT YOU'VE PRESENTED TONIGHT, THIS COUNCIL IS NOW EDUCATED TO THE EXTENT ANY OTHER TO COME. WE KNOW THE QUESTIONS TO ASK. WE KNOW HOW TO VET THEM. WE KNOW WHAT TO LOOK FOR. IS THERE GOING TO BE ENOUGH WATER? GOD'S NOT MAKING NO MORE WATER. BUT I HEARD YOU SAY SOMETHING TONIGHT ABOUT, WELL, THE CLING SYSTEM IS SUCH THAT YOU FILL IT UP THE FIRST TIME. IT'S JUST LIKE THE RADIO ON YOUR CAR. IT TAKES CARE OF ITSELF UNTIL YOU HAVE TO DO SOME MAINTENANCE ON IT. 
          SO WE'RE NOT REALLY USING THAT MUCH WATER AND THE WATER THAT WE ARE USING, GOING THROUGH THE IRRIGATION SYSTEM, THESE ARE THE KINDS OF PIECES OF INFORMATION, I THINK THAT OUR CITIZENS, THEY HEAR IT AND THEY CAN UNDERSTAND IT. BUT WE HAVE TO MESSAGE IT THOUGH, IN SUCH A MANNER THAT WE DON'T CONVOLUTED WITH ALL THESE TERMS AND THINGS THAT REALLY MAKE IT MORE DIFFICULT FOR THEM TO TRULY UNDERSTAND. SO WHAT I WANT TO SAY TO YOU TONIGHT IS I TRULY APPRECIATE THE MANNER BY WHICH YOU HAVE SAT HERE AND EXPLAINED TO US THE SITUATION. YOU'VE GIVEN US SUFFICIENT INFORMATION THAT WE GO FORWARD. THERE'S NOT GOING TO BE A DATA CENTER THAT COMES IN HERE AT THIS POINT THAT WE DON'T KNOW THE QUESTIONS AND HAVE ANSWERS. AND BECAUSE WE DOAVE THE STAFF AND PROFESSIONALS THAT UNDERSTAND IT FOR US, ANY QUESTION THAT WE HAVE, YOU'RE GOING TO BE ABLE TO TELL US WHAT WE NEED TO KNOW. SO WITH THAT, MR. MAYOR, I JUST WANT TO SAY TO THIS COUNCIL, FIRST OF ALL, I DO AGREE. AS I SAID, WE'VE ASKED THE HARD QUESTIONS HERE TONIGHT AND NOT ONLY ASK QUESTIONS, BUT WE'VE GOTTEN 
          [02:35:02]
VERY GOOD ANSWERS. AND I THINK THAT WE HAVE A VERY CLEAR DIRECTION NOW BY WHICH WE CAN GO FORWARD. THIS IS NOT GOING TO REALLY BE A PROBLEM FOR US. THANK YOU, MR. MAYOR. THANK YOU, SIR. I APPRECIATE YOUR THOUGHT THAT WE HAVE 100,000 PEOPLE WATCHING, BUT I THINK THEY'RE ALL WATCHING ANOTHER SHOW RIGHT NOW. CERTAIN SOCCER GAME GOING ON. COUNCILMEMBER TRAN. THANK YOU, MR. MAYOR. I TRY TO MAKE IT SHORT. FIRST OF ALL, THANK YOU SO MUCH FOR THE PRESENTATIONS AND PUT ALL TOGETHER. AND THANK YOU, CITY MANAGER. MY BEST. I SENT HIM FROM MY RESIDCE. A LOT OF THEM ASK THE SAME QUESTION BECAUSE IN DISTRICT ONE, AND I APPRECIATE THAT, TAKES THE TEAM LOT OF WORK AND HOURS TO GO BACK TO HOW MANY YEARS. AND WHAT I HEARD SO FAR IS SINCE 2017 IS ABOUT TEN YEARS THAT WE HAVE DATA CENTER HERE. AND FROM THE SLIDE SIX, I THINK IS THE MENTIONED ABOUT, WE ARE REACHING 12% OF THE MEGAWATTS ON DEMAND IN GARLAND. SO WE STILL HAVE 80 SOMETHING PERCENT THAT NOT BEING USED. MY QUESTION SHOULD BE, WHEN DO YOU THINK IN TERMS OF ELECTRICITY, THE GOOD PART THAT THAT ON PAGE SEVEN, THAT PUT A LOT OF STEPS AND PROCEDURE IN PLACE THAT MITIGATES. THAT HELP OUR RESIDENTS, MOSTLY THE THE LARGE LOADERS PAYS THE COST, MOST OF THEM. SO THAT'S GREAT. MY QUESTION SHOULD BE WITH THIS 12% USAGE FOR THE PAST ABOUT TEN YEARS, WHEN IS YOUR FORECAST JUST KIND OF FORECAST THAT WE'RE GOING TO REACH THE LEVEL THAT WE YOU KNOW, THAT KIND OF DEMAND PROPOSE. AND WHEN YOU ANTICIPATE THAT THE USER OR THE CONSUMERS THAT MIGHT BE CHEAP IN THE COST, IF IS THAT GOING TO BE FIVE YEARS, TWO YEARS, TEN YEARS, IF YOU HAVE ANY INFORMATION, INSIGHT. SO IF YOU BECAUSE I KNOW THE PEOPLE OUT IN THE ARE CAN'T HEAR UNLESS I'M RIGHT NEXT TO THIS. SO IT WE'RE PROVIDED WHAT ARE CALLED LOAD RAMPS FROM THE DATA CENTERS, WHICH GIVE US THE INDICATIONS OF. TYPICALLY IT'S ON A QUARTERLY BASIS OF WHEN, WHEN THE LOAD IS GOING TO BE COMING ON AND AT WHAT TIME. AND, YOU KNOW, THE FUTURE FORECAST, IF I GO BY THAT, WE, WE WOULD BE, LET'S SAY, MUCH MORE FULLY UTILIZED AS FAR AS CAPACITY. 
          REALLY FOR THEM. IT DEPENDS UPON WHEN THEY GET THEIR CUSTOMER THAT IS GOING TO BE UTILIZING THE FACILITIES. AND IF YOU'VE YOU'VE YOU'VE DEALT MUCH WITH DEVELOPERS. IT'S USUALLY, YOU KNOW, THEY'RE, THEY'RE MORE OF THE GLASS IS HALF FULL AND I'M PROBABLY A LITTLE MORE. THE GLASS IS HALF EMPTY. SO THEY'RE A LITTLE MORE OPTIMISTIC ON WHEN THEY'RE GOING TO BE GETTING THOSE CUSTOMERS COMING IN AND THAT LOAD AND SO FORTH HISTORICALLY IS WHAT I'VE SEEN. SO WE HAVE LOAD RAMP ANALYSIS THAT THEY PROVIDE US. YOU CAN TAKE THAT FOR WHAT IT'S WORTH. SO I CAN'T TELL YOU EXACTLY WHEN THEY'RE GOING TO BE COMING ON. WE GET INDICATIONS THEY, THEY, WE SEE SOME ADDITIONAL BUILDING THAT'S OUT THERE. SO THAT GIVES US SOME INDICATION THAT, YES, THAT ADDITIONAL USAGE SHOULD BE COMING. BUT AS FAR AS SPECIFIC TIME FRAMES, I CAN'T GIVE YOU AND SAY IT'S GOING TO BE THIS TIME NEXT YEAR, OR IF IT'S GOING TO BE TWO YEARS OR IF IT'S GOING TO BE SIX MONTHS. WE DO KNOW THAT THEY HAVE TO START NEGOTIATING WITH US. WITH REGARDS TO THE POWER AS FAR AS THE PURCHASE SIDE OF THINGS. 
          AND SO TYPICALLY WHEN THAT STARTS TO HAPPEN, THEN WE START GETTING A FEELING FOR, OKAY, THEY'RE, THEY'RE ABOUT TO, THEY'RE, THEY'RE REALLY SERIOUS. NOW AS FAR AS THE LOAD THAT'S COMING ON. SO I CAN'T GIVE YOU SOMETHING SPECIFIC OF, IS IT ONE YEAR, TWO YEAR, FIVE YEARS? MAYBE. YES, YES. THANK YOU. THANK YOU. ALLISON, I HAVE SOME IDEA. PLEASE APPRECIATE IT. AND GO BACK TO THE SLIDES. RELATE TO THE 35.5 MILLION TAX REVENUE. IS THAT FOR THE PAST FIVE YEARS, HOW SIGNIFICANT IS THAT HELP THE CITY? CURRENT FINANCIAL CHALLENGE. PROBABLY THE BEST WAY TO PUT IT IN PERSPECTIVE. IT'S ABOUT $1.24 BILLION OF PROPERTY VALUE. THAT'S ABOUT 4% OF OUR TOTAL PROPERTY VALUE VALUATION IN THE CITY FROM THESE THREE FACILITIES. RIGHT. 
          THANK YOU SO MUCH. I THINK THIS IS TONIGHT THAT WILL HAVE A LOT OF OUR RESIDENTS, AND THEY HAVE A LOT OF ANSWERS SO FAR. SO I APPRECIATE IT. AND THANK YOU SO MUCH. THANK YOU, MR. MAYOR. 
          [02:40:01]
THANK YOU, SIR. I HAVE TWO MORE PEOPLE IN THE QUEUE HAVE SPOKEN ALREADY. I'M GOING TO ASK IF THERE'S SOMETHING NEW TO ADD TO THE CONVERSATION FIRST. DEPUTY MAYOR PRO TEM DUTTON I JUST THOUGHT IT WAS IMPORTANT TO MENTION THAT THE LARGE DRIVER OF OUR ELECTRIC RATES GOING UP IS THE COST OF NATURAL GAS. I WOULD BE FAR MORE FEARFUL OF ANOTHER SPIKE IN NATURAL GAS COSTS RAISING MY ELECTRIC BILL THAN ANYTHING, TO BE HONEST. SO. COUNCILMEMBER, HAS ERCOT DENIED ANY OF THE LARGE LOADS IN GARLAND WITH, THROUGH THEIR EVALUATION PROCESS OF OF BEING DENIED? NONE. THAT'S GOOD NEWS. I MEAN, THAT MAKES ME FEEL A LOT BETTER. I, I THINK THAT IT'S REALLY IMPORTANT THAT WE UNDERSTAND THAT ERCOT IS MONITORING THESE LARGE LOAD LOADS, NOT EVEN DATA CENTERS. I THAT REALLY, HONESTLY MAKES ME FEEL A LOT BETTER THAT ERCOT WOULD BE THE ONE SAYING, YES, WE CAN, WE CAN SUSTAIN YOU AND, AND YOU'RE NOT GOING TO KILL OUR GRID BASICALLY IS WHAT THEY'RE SAYING, RIGHT? I MEAN, SO THAT IS MUCH BETTER. THANK YOU. THANK YOU MA'AM. I SEE NO OTHER QUESTIONS. SO THANK YOU VERY MUCH. THANK YOU. MADAM SECRETARY. IF YOU'D PLEASE CALL OUR SPEAKER ON THIS ITEM. JAMES COOK. ALL RIGHT. SIR, IF YOU JUST GIVE YOUR NAME AND ADDRESS FOR THE RECORD, YOU HAVE THREE MINUTES. MY NAME IS JAMES COOK. 
          I LIVE IN DISTRICT 318335. GOOD AFTERNOON. WELL, ACTUALLY, IT'S MEMBERS. I'M THE HOMEOWNER HERE IN GARLAND AND I'M ALSO FOUNDER AND CEO. OF HEALTHCARE AI INFRASTRUCTURE COMPANIES WITH A FUTURE DEVELOPMENT OF AN AI DATA CENTER PLANNED STARTING IN 2030. WE DEAL WITH MEDICAL, MEDICAL IMAGING, DE-IDENTIFIED HEALTHCARE DATA, AND THE TECHNOLOGY NEEDED TO SUPPORT FUTURE MEDICAL RESEARCH. AND I APPRECIATE THAT THE COUNCIL IS ASKING VERY IMPORTANT QUESTIONS, ESPECIALLY IF YOU LOOK AT FACEBOOK AND YOU SEE ALL THE NEGATIVE COMMENTS ABOUT DATA CENTERS. AND THE QUESTIONS MATTER. GARLAND RESIDENTS DESERVE TRANSPARENCY. WE DESERVE TO KNOW WHAT'S BEING BUILT, WHAT RESOURCES IT REQUIRES, AND WHETHER THOSE PROJECTS ARE BEING DEVELOPED RESPONSIBLY. BUT I WANT TO ADD CONTEXT THAT'S THAT'S OFTEN MISSING, AND THAT IS THAT IT'S NOT JUST BUILDING FULL OF SERVERS FOR MINE. IT WILL BE FOR HEALTHCARE. HOSPITALS HAVE TO KEEP THREE SETS OF DATA. WHEN YOU GO IN AND GET A CT, AN X-RAY OR WHATEVER, THE RADIOLOGIST, THE HOSPITAL GET PAID FOR IT ONCE, BUT THEY HAVE TO STORE THOSE IMAGES HERE IN TEXAS FOR TEN YEARS, NOT JUST AT THE HOSPITAL, BUT TWO OFFSITE DATA CENTERS, TYPICALLY NOT OWNED BY THE HOSPITALS. THEY'RE IMPORTANT FOR NOT ONLY FOR YOU IN CASE SOMETHING HAPPENS AND THEIR THEIR DATA GETS WIPED OUT, THEY NEED TO BE ABLE TO HAVE IT AVAILABLE. AND IF THERE'S A WIDESPREAD DISASTER, ALL OF THOSE THOSE STUDIES. WHAT WE'RE DOING IS TAKING THAT DATA AND WE'RE DE-IDENTIFYING IT. AND THAT DATA WILL BE USED FOR AI RESEARCH TO DETECT DISEASES. AND ALSO ADDITIONALLY, THERE'S A SEVERE SHORTAGE IN THE HEALTH CARE INDUSTRY. RADIOLOGISTS AGING OUT, LACK OF PHYSICIANS, NURSES AND OTHER CARE STAFF. THEY'RE NOT GOING TO REPLACE AI IS NOT GOING TO REPLACE, BUT IT WILL CERTAINLY ASSIST IN SOME OF THE SOME OF THE NEW GREATLY ENHANCED OUR CARE. 
          THINK ABOUT WOMEN'S IMAGING. YOU GO IN AND GET A MAMMOGRAM WE'VE BEEN USING FOR MANY, MANY YEARS CAD, WHICH IS COMPUTER AIDED DETECTION.HE OTHER THING TOO IS THAT DATA CENTERS, 
          [02:45:05]
THEY DON'T EMPLOY MINIMUM WAGE PEOPLE. THESE ARE HIGH PAYING WAGES. MOST OF THEM ARE SIX FIGURES. AND YOU CAN EXTEND THAT TO ALL THE RESEARCHERS AND EVERYBODY ELSE IN ALL THE OTHER PROFESSIONS THAT NEED THAT DATA. SO I'M GOING TO ASK YOU TO SUM UP, PLEASE. SURE. ANYWAYS, REQUIRES TRANSPARENCY. I APPRECIATE YOU ASKING THE TOUGH QUESTIONS. AND UNFORTUNATELY, GARLAND IS NOT THE CITY THAT I WILL BE BUILDING MY DATA CENTER HERE. THANK YOU. THANK YOU SIR. 
          MADAM SECRETARY, DO WE HAVE ANY OTHER SPEAKERS ON THIS TOPIC? NO, SIR, WE DO NOT, SIR. ALL RIGHT. WELL, THEN COUNCIL, THANK YOU FOR THAT DISCUSSION. WE'RE GOING TO TAKE A RECESS NOW. I ASK WELCOME BACK TO OUR WORK SESSION, AND THANK YOU FOR ALL THOSE JOINING US RIGHT AFTER THE SOCCER GAME. I KNOW WE HAVE A BIG AUDIENCE JOINING US NOW. WE'LL MOVE ON 
          [11. Mayor Appointments to Council Committees and Outside Boards]
TO ITEM NUMBER 11 IS MAYOR APPOINTMENTS TO COUNCIL COMMITTEES AND OUTSIDE BOARDS. 
          AND THIS IS JUST A ITEM THAT I, I WILL BE PRESENTING, JUST IDENTIFYING WHICH COUNCIL MEMBERS THAT I HAVE APPOINTED TO THE VARIOUS COMMITTEES THAT WE HAVE AND AS WELL AS THE OUTSIDE BOARDS THAT HAVE MADE APPOINTMENTS TO. I HAVEN'T HEARD ANY OBJECTIONS FROM ANY OF THE COUNCIL MEMBERS ON THEIR ASSIGNMENTS. SO I ALSO WANT TO SAY THANK YOU TO EVERYONE WHO GIVES UP THEIR TIME TO SERVE OUTSIDE OF JUST THE WORK SESSION MEETINGS AND GENERAL MEETINGS TO SERVE ON THE COUNCIL COMMITTEES, BECAUSE THIS IS WHERE A LOT OF THE REAL WORK ON COUNCIL HAPPENS. I THANK YOU ALL FOR BEING PART OF THAT PROCESS. ON OUR AUDIT COMMITTEE, WE HAVE THE CHAIRMAN, ED MOORE, AND WE HAVE COUNCIL MEMBER MARGARET LUCK AND MAYOR PRO TEM ORTT ON ADMINISTRATIVE SERVICES COMMITTEE. WE HAVE THE CHAIRWOMAN, MARGARET LUCK. WE HAVE COUNCIL MEMBER MOORE AND DEPUTY MAYOR PRO TEM DUTTON ON COMMUNITY SERVICES. WE HAVE DEPUTY MAYOR PRO TEM DUTTON AS THE CHAIR, WITH COUNCIL MEMBERS CARAWAY AND SILVIANO ON DEVELOPMENT SERVICES. WE HAVE COUNCIL MEMBER LUCK AS THE CHAIR, WITH COUNCIL MEMBERS TRAN AND THOMAS AS THE OTHER TWO MEMBERS. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE HAS MAYOR PRO TEM OTT, WITH COUNCIL MEMBER MOORE AND COUNCIL MEMBER THOMAS. PUBLIC SAFETY IS MAYOR PRO TEM OTT AS THE CHAIR, COUNCIL MEMBER AND DEPUTY MAYOR. PRO TEM DUTTON. TRANSPORTATION MOBILITY COMMITTEE IS CHAIRED BY COUNCIL MEMBER THOMAS, WITH COUNCIL MEMBERS TRAN AND CARAWAY, AND ON OUR NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS. OUR REPRESENTATIVE IS MAYOR PRO TEM OTT AND ON THE DALLAS REGIONAL MOBILITY COUNCIL AND THE REGIONAL TRANSPORTATION COMMITTEE. COUNCIL MEMBER MOORE REPRESENTS US THERE. NO QUESTIONS ON THAT 
          [12. Audit Committee Meeting Report]
ITEM. WE'LL MOVE ON FROM THERE. NEXT ITEM ON OUR AGENDA IS ITEM NUMBER 12. OUR AUDIT COMMITTEE MEETING REPORT. COUNCIL MEMBER MOORE, YOU CHAIR THIS COMMITTEE, SIR. THANK YOU, MR. MAYOR. 
          WE'RE GOING TO TRY AND BE VERY BRIEF THIS EVENING. I THINK WE HAVE FOUR REPORTS THAT WE'RE GOING TO BRING BEFORE YOU THIS EVENING. AND AT THIS POINT, I'LL GO TO OUR DIRECTOR, JED JOHNSON. GOOD EVENING, MAYOR, CHAIRMAN, COUNCIL. I WAS TOLD I HAVE 15 SECONDS. AND BE CAREFUL IN SITTING THIS CHAIR BECAUSE I MIGHT TAKE LONGER. NOW. I'M JUST KIDDING. THANK YOU SO MUCH FOR HAVING ME. I WILL BE VERY BRIEF. AS THE CHAIR INDICATED, WE. WE MET ON JUNE 16TH AND DISCUSSED THREE DIFFERENT AUDIT REPORT AND WENT OVER TO AUDIT FOLLOW UP REPORTS AS WELL. AND THE FIRST ITEM THAT WE COVERED WAS THE ENGINEERING FEE ASSESSMENT AND COLLECTIONS AUDIT. AS YOU'RE AWARE, OUR ENGINEERING DEPARTMENT, THE COORDINATES, PUBLIC WORKS PROJECT DEVELOPMENT REVIEWS AND RIGHT OF WAY OVERSIGHT, FLOOD PREVENTION EFFORTS, MAINTENANCE OF OFFICIAL CONSTRUCTION RECORDS. THEY DO A LOT OF STUFF. SO OUR GOAL WAS TO ENSURE THAT THE DEVELOPMENT FEES THAT WERE ASSESSING THE RIGHT OF WAY, CONTRACTOR REGISTRATION FEES THEY WERE ASSESSING, WERE THEY IN ACCORDANCE WITH THE CITY ORDINANCE AND DID THEY HAVE DID THEY MAINTAIN AN EFFECTIVE MONITORING PROCESS? SECONDLY, WE ALSO WANTED TO ENSURE THAT, AS MANY OF YOU ARE AWARE, THE LAKE HERBERT PARCEL SUBLEASES, ARE THEY BEING MONITORED IN ACCORDANCE WITH THE AGREEMENTS WITH THE CITY OF DALLAS AND ALSO SUBLEASES FROM A POSITIVE OBSERVATION, OUR ENGINEERING DEPARTMENT HAS DONE AN EXCELLENT JOB IN DEVELOPMENT, REVIEW AND ASSESSING INSPECTION FEE. THEY ASSESSED THOSE ACCURATELY AND TIMELY. THE SITE 
          [02:50:05]
DEVELOPMENT REVIEW TEAM WAS VERY COMPREHENSIVE AND THEY KNEW EXACTLY WHAT THEY WERE WORKING ON. THEY RETAINED SUPPORTING DOCUMENTATION. WHERE WE FOUND OPPORTUNITIES FOR IMPROVEMENT IS WHERE RIGHT OF WAY CONTRACTOR REGISTRATION PROGRAM. AS YOU ARE AWARE, IN ORDER FOR YOU TO WORK ON ON THE CITY'S RIGHT OF WAY, THE CONTRACTORS ARE SUPPOSED TO REGISTER WITH THE CITY, AND IT'S A $400 FEE AND THEY HAVE TO PAY THE CITY, AND THAT IS GOOD FOR 12 MONTHS. DURING OUR AUDIT, WE IDENTIFIED THAT, NUMBER ONE, NOT ALL RIGHT OF WAY PERMITS ARE RETAINED AND TRACKED IN OUR SYSTEM. SECONDLY, WE DID FIND THAT SOME OF THOSE CONTRACTORS AND CONTRACTORS DID NOT REGISTER. THEY DID REGISTER WITH THE CITY, BUT WE DID NOT ASSESS FEES FROM A SAMPLE PERSPECTIVE. WE LOOKED AT ABOUT 175 PERMITS, APPROXIMATELY $11,000 IN CONTRACTOR REGISTRATION FEE WAS NOT ASSESSED. IN ADDITION TO THAT, WE ALSO FOUND AREAS WHERE WE CAN IMPROVE ON RETAINING INSURANCE DOCUMENTATION, CONTRACTOR DOCUMENT, CONTACT INFORMATION. WE ALSO PUT HOLDS ON CONTRACTORS IF THEY VIOLATE THE CITY'S POLICIES AND REGULATIONS. UNFORTUNATELY, WE DID NOT HAVE A FORMAL PROCESS OF TRACKING THOSE CONTRACTORS, SO THE SO WE MADE RECOMMENDATIONS AND MANAGEMENT CONCURRED. THEY ARE IN THE PROCESS OF MOVING TO A NEW SYSTEM. THE CURRENT SYSTEM LIMITATION PREVENTED FROM PREVENTED THEM FROM TRACKING THESE CONTRACTS EFFICIENTLY AND EFFECTIVELY. SO THEY'RE IN THE PROCESS OF IMPLEMENTING THAT SYSTEM, WHICH MIGHT TAKE A LITTLE BIT OF TIME. BUT ONCE THOSE ARE IMPLEMENTED, A LOT OF THESE ISSUES WILL BE WILL BE TAKEN CARE OF ON OBJECTIVE B FROM A LAKE SIDE PARCEL SUBLEASE PROGRAM. WE ARE THERE ARE 99 PARCELS THAT ARE ELIGIBLE FOR SUBLEASES AT THIS POINT. 32 OF THEM ARE SUBLEASED TO PROPERTY OWNERS. THE CURRENT FEES THAT WE ASSESS. SO IF YOU WANT TO BE IN THAT PROGRAM, YOU HAVE TO PAY $750 INITIAL FEE. THEN ALL YOU PAY IS A $50 ANNUAL FEE. THAT THESE F FEES HAVE NOT BEEN REEVALUATED SINCE 2010. WE KNOW OUR ADMINISTRATIVE COSTS HAVE GONE UP. SO ONE RECOMMENDATION WAS TO REEVALUATE THAT. SECONDLY. THERE IS A REQUIREMENT IN OUR LEASE TODAY FOR PROPERTY OWNERS TO MAINTN A COMMERCIAL PUBLIC LIABILITY INSURANCE MINIMUM OF $500,000 PER OCCURRENCE FOR BODILY INJURY AND PROPERTY DAMAGE. AFTER SPEAKING WITH THE CITY MANAGER THIS, WE MAY NOT NEED TO REQUIRE THOSE. AND WHEN WE WHEN WE EVALUATED THESE INSURANCES THAT PEOPLE HAVE SUBMITTED, NO ONE HAS REALLY PROVIDED THAT OR WE'RE ABLE TO AFFORD THAT. THIS IS A COMMERCIAL LIABILITY, AND THE CITY MANAGER DID NOT THINK IT'S APPROPRIATE FOR US TO REQUIRE THAT. SO OUR RECOMMENDATION WAS TO REEVALUATE AND RECONSIDER THAT REQUIREMENT. OVERALL, THE AUDIT ONCE AGAIN SHOWED POSITIVE OBSERVATION FROM FROM. 
          ASSESSING FEES PERSPECTIVE. BUT WE ALSO FOUND SOME AREAS WHERE WE CAN IMPROVE ON SO HIGH LEVEL THAT'S THE ENGINEERING AUDIT. I'LL GO QUICKLY, MAYOR, IF THAT'S OKAY WITH YOU. HAVE ANY QUESTIONS, PLEASE CONTINUE. NEXT ITEM WAS THE TRAFFIC SIGNAL EQUIPMENT MODERNIZATION PROGRAM AUDIT. THIS IS WITH THE TRANSPORTATION DEPARTMENT. AS YOU'RE AWARE, AS PART OF THE 2019 BOND PROGRAM, WE INITIATED THIS MODERNIZATION OF TRAFFIC SIGNALS. WE HAVE 203 SIGNALIZEZD INTERSECTIONS WITHIN GARLAND. I'M HAPPY TO REPORT THAT AS OF RIGHT NOW, THE DEPARTMENT HAS MODERNIZED 125 OF THEM. SO THAT'S MORE THAN HALF OF THEM. SO THEY ARE DOING A GREAT JOB. 
          AGAIN, WE WANTED TO MAKE SURE THAT ARE THEY EFFECTIVELY MONITORED? ARE THEY PROGRESSING AS PLANNED? AS I SAID, YES, THEY ARE PROGRESSING AS PLANNED. SECONDLY, WE WANTED TO SEE IF, SINCE WE ARE USING A CONTRACTOR, IS THE CONTRACTOR IN COMPLIANCE WITH THE BILLING ACCURACY AND OTHER REQUIREMENTS. ALSO HAPPY TO REPORT THAT, YES, WE HAVE A VERY GOOD MONITORING IN PLACE WHERE WE MAKE SURE THAT THE BILLS ARE ACCURATE AND WE ARE PAYING PAYING ACCURATELY. SO THOSE THAT'S AGAIN, A POSITIVE OBSERVATION. THIRDLY, WE WANTED TO VERIFY IF WE ARE GETTING CERTAIN REIMBURSEMENTS FROM TXDOT. FOR EXAMPLE, WE HAVE CERTAIN AGREEMENTS WITH THEM, APPROXIMATELY $625,000 TEX-DOT AGREED TO PROVIDE TO US, MAINLY FOR 685 RENOVATION, AND THEY 
          [02:55:09]
HAVE BEEN BILLING TIMELY, AND WE HAVE RECEIVED A PORTION OF THAT. I BELIEVE WE HAVE RECEIVED ALMOST HALF OF THAT AMOUNT SO FAR. AND ONCE THE 635 WORK IS DONE, I BELIEVE WE WILL COLLECT THE REST OF THEM AS WELL. LASTLY, WE WANTED TO ENSURE THAT VERIFY CYBERSECURITY ASSURANCE PROCESS AND SECURITY CONTROLS OVER MODERNIZATION SYSTEMS, WHICH IS VERY IMPORTANT. AND I DO WANT TO INFORM YOU THAT OUR AUDIT REVEALED THAT TRAFFIC SIGNAL SOFTWARE OPERATES ON A PRIVATE NETWORK, AND THE VENDOR MAINTAINS SOC TWO TYPE TWO COMPLIANCE AUDIT. THIS IS SOMETHING THAT WE REQUIRE WHEN WE HIRE THIRD PARTIES TO MAKE SURE THAT THEY DO HAVE CONTROLS IN PLACE, AND TO SHOW THAT THEY HAVE TO HIRE A THIRD PARTY AUDITOR TO COME AND DO THE AUDIT. SO THEY DID MAINTAIN THAT FROM OPPORTUNITIES FOR IMPROVEMENT PERSPECTIVE. AS YOU'RE AWARE, WE HAVE CONTROLLED ACCESS HIGHWAYS AS WELL AS NON CONTROLLED ACCESS HIGHWAYS WITHIN THE CITY, SUCH AS HIGHWAY 78 AND 66 FOR CONTROLLED ACCESS HIGHWAYS. WE DO RECEIVE REIMBURSEMENT FROM TXDOT FOR MAINTENANCE FOR NON-CONTROLLED ACCESS HIGHWAYS. CURRENTLY, WE DID NOT RECEIVE THOSE. WE ARE RESPONSIBLE TO MAINTAIN THOSE INTERSECTIONS, BUT OUR AGREEMENT WITH TXDOT ALLOW US TO REACH OUT TO THEM TO SEE IF WE CAN GET ADDITIONAL FUNDING THROUGH A FEDERAL PROGRAM OR STATE PROGRAM. 
          TRANSPORTATION IS MONITORING THAT, SO WE ENCOURAGE THEM TO FURTHER REEVALUATE THAT FURTHER, SEE IF THERE ARE OPPORTUNITIES FOR US TO OBTAIN ADDITIONAL FUNDING. EACH OF THESE INTERSECTIONS COST APPROXIMATELY $100,000. SO IF WE CAN GET SOME FUNDING FROM THE FEDERAL PROGRAM, THAT WOULD BE HELPFUL FOR THE CITY. SECONDLY, CONTRACT DOCUMENTS CONTAIN INCONSISTENCY REGARDING INSURANCE AND BONDING REQUIREMENTS. SO CURRENTLY, THE DEPARTMENT IS WORKING WITH RISK MANAGEMENT TO MITIGATE THAT ISSUE ACCESS. RIGHT PERSPECTIVE. 
          WE DID FIND A GENERIC ADMINISTRATIVE ACCESS. ACCOUNT MANAGEMENT IS REEVALUATING TO SEE IF THAT IS NECESSARY TO RETAIN. IF NOT, WE DON'T WANT TO KEEP GENERIC ACCESS ACCESS ACCOUNTS. LASTLY, CONTRACTOR PERFORMED EQUIPMENT RLACEMENT WERE NOT CONSISTENTLY ENTERED INTO THE CITY'S WORK ORDER SYSTEM. THEY. THEY WILL BE ADDING THOSE ON MOVING FORWARD. 
          SO HIGH LEVEL. THAT WAS THE THIRD SECOND AUDIT. THIRDLY, WE LOOKED AT THE GARLAND VISITOR CENTER AUDIT, MAINLY FROM A CASH HANDLING AND INVENTORY PERSPECTIVE. HIGH LEVEL. AS YOU'RE AWARE, IT'S A VERY SMALL OPERATION, BUT IT'S A PUBLIC FACING OPERATION. FOR THE PAST TWO YEARS, MERCHANDISE SALES PERSPECTIVE, THEY HAVE SPENT ABOUT $78,000. AGAIN, IT'S A SMALL OPERATION, BUT WE WANTED TO ENSURE THAT THEY DO HAVE CONTROLS IN PLACE. OBVIOUSLY, THEY CANNOT IMPLEMENT ALL TYPES OF INTERNAL CONTROLS, BUT WE AS A CITY OPERATION, WE WANT TO MAKE SURE THAT IF T THEY CANNOT PROPERLY SEGREGATE CERTAIN DUTIES, DO THEY HAVE COMPENSATING CONTROLS, MANAGEMENT REVIEWS, REPORTING, JUST TO MAKE SURE THAT THERE IS AN OVERSIGHT WHICH THEY AGREED TO ENHANCE THAT POS SYSTEM. PERMISSION WISE, CURRENT SYSTEM ALLOWS A NUMBER OF PEOPLE TO HAVE ACCESS TO ADJUST THE RATES, ADJUST THE ACCOUNTS WITHIN THE SYSTEM, BUT THEY ARE ALSO LOOKING TO MOVE TO A NEW POS SYSTEM. ONCE THAT SYSTEM IS IMPLEMENTED, THOSE ACCESS WILL BE SEGREGATED. A FEW MINOR OTHER STAFF. THEY DO PROVIDE DISCOUNTS TO CITY EMPLOYEES AS WELL AS THEIR EMPLOYEES, AND WE WANTED TO MAKE SURE THAT THEY ARE RETAINING EMPLOYEE NUMBERS, EMPLOYEE DETAILS, SO WE CAN MAKE SURE THAT THOSE DISCOUNTS ARE PROPERLY GIVEN. PROMOTIONAL INVENTORY TRACKING WISE, AS YOU'RE AWARE, THEY HAVE, THEY DO HAVE A LOT A LARGE NUMBER OF PROMOTIONAL INVENTORY ITEMS. THEY GOING FORWARD, THEY WILL BE ENHANCING TRACKING OF THAT. SO THAT'S ON THAT AUDIT. THE LAST TWO ITEMS THAT WE COVERED WERE FOLLOW UPS FROM PREVIOUS AUDIT. SO LAST YEAR IN APRIL OF 2025, WE ISSUED THE MUNICIPAL WASTEWATER TREATMENT AGREEMENTS AUDIT. AND THE AUDIT COMMITTEE REQUESTED MANAGEMENT TO PROVIDE A STATUS UPDATE ON THAT ONE. AT THAT TIME, WHEN WE DID THE AUDIT, THERE WERE 12 AREAS OF IMPROVEMENTS THAT WE IDENTIFIED. THOSE AREAS WERE, YOU KNOW, WE DO SERVE THESE OTHER CITIES SUCH AS RICHARDSON, ROWLETT, SUNNYVALE, DALLAS COUNTY, MUD. NUMBER FOUR, THERE ARE CERTAIN AREAS. WE DID NOT HAVE METERS, SO WE WANTED TO MAKE SURE THAT WE ARE BILLING ACCURATELY BASED ON THE THE FLOW, THE INFLOW. SO M HAPPY TO REPORT THAT SINCE THAT AUDIT CRYSTAL ACTUALLY DID THIS PRESENTATION. BUT SINCE THAT AUDIT. RICHARDSON, WE HAVE ADDED THREE METERS AT THE POINT 
          [03:00:06]
OF ENTRY WITH RICHARDSON. SO WE CAN MEASURE THE INFLOW TO THE CITY. IN OUR SYSTEM ITSELF, WE WERE, YOU KNOW, PER THE CONTRACT, WE COULD ADD LATE PAYMENT PENALTIES IF OUR CUSTOMER CITIES ARE NOT PAYING LARGE AMOUNT OF MONEY TO THE CITY. DURING THE TIME OF THE AUDIT, WE IDENTIFIED THAT TOTAL. IF WE WOULD HAVE ASSESSED THOSE FEES, THAT WAS ABOUT $170,000 THAT WE COULD HAVE. BUT THERE WAS A SYSTEM GLITCH WHERE WE SOMEHOW MADE AN EXCEPTION FOR THESE CUSTOMER CITIES. AFTER THE AUDIT WAS DONE, THAT EXCEPTION HAS BEEN REMOVED. SO IF, FOR EXAMPLE, IF DALLAS MAKES A LATE PAYMENT RIGHT NOW, THEY WE WILL ASSESS A LATE PAYMENT PENALTY. AND SO THAT'S NUMBER TWO. SECONDLY. THIRDLY, WE WANTED TO IMPROVE OUR STRENGTH SAMPLING PROCESS. B, BIOCHEMICAL OXYGEN DEMAND AND TOTAL SUSPENDED SOLIDS PER OUR CONTRACT. IF THAT EXCEEDS 250MG/L, WE CAN ASSESS SURCHARGES. SO WE WERE NOT DOING THAT. THAT'S BECAUSE OF SOME SOME DISCREPANCIES BETWEEN THE LANGUAGE IN THE CONTRACT AS WELL AS THE ORDINANCE. BUT CURRENTLY MANAGEMENT IS WORKING WITH A CONSULTANT TO, TO, TO, TO RESOLVE THAT PROBLEM. SO GOING FORWARD, THAT WILL BE TAKEN CARE OF. ALSO, WE MADE RECOMMENDATIONS TO STRENGTHEN INFLOW AND INFILTRATION REPORTING REQUIREMENTS. AGAIN, SOME OF THESE ITEMS MANAGEMENT WILL HAVE TO YOU KNOW, SOME OF THESE CONTRACACTS ARE PRETTY LENGTHY. FOR EXAMPLE, THE CONTRACT WITH DALLAS AND RICHARDSON, IT'S A 50 YEAR CONTRACT. AND WE SIGNED THAT IN BACK IN 1977. SO AS THESE CONTRACTS ARE EXPIRING, WE WILL HAVE AN OPPORTUNITY TO MITIGATE SOME OF THESE LANGUAGES IN THE CONTRACTS WITH OTHER CUSTOMER CITIES. OUR CONTRACTS CURRENTLY WAS EXECUTED IN 2017. THEY ARE FOR 20 YEARS, SO WE'LL HAVE TO WAIT A LITTLE LONGER WITH THOSE CONTRACTS. OVERALL, I DON'T WANT TO GO THROUGH EACH AND EVERY ONE OF THIS, BUT I DO WANT TO GIVE KUDOS TO OUR WATER DEPARTMENT. THEY HAVE COMPLETED SEVEN OPPORTUNITIES FOR IMPROVEMENT AREA. SO KUDOS TO CRYSTAL AND HER STAFF FOR IMPLEMENTING THAT. AND THEY'RE WORKING ON IN THE OTHER AREAS AS WELL. THE FIVE OTHER. SO THERE HAS BEEN PROGRESS IN ALL THE AREAS THAT WE RECOMMENDED, SO KUDOS TO THEM. LASTLY, FIRE EMS CONTROL SUBSTANCE AUDIT ISSUED THAT REPORT LAST YEAR IN SEPTEMBER 2025, WE MAINLY LOOKED OVER TO SEE CONTROLS OVER ACQUISITION, DISTRIBUTION, TRANSFER, INTERVENTION, DISPOSITION AND PAYMENT PROCESS OF CONTROL SUBSTANCES. MANY OF OUR APPARATUS HAVE CONTROL SUBSTANCES, AND WE HAVE DEA REQUIREMENTS ON HOW TO MAINTAIN THEM, HOW TO PROTECT THEM. SO IT WAS MORE OF A COMPLIANCE SLASH INTERNAL CONTROL AUDIT. DURING THE AUDIT, WE DID IDENTIFY SIX AREAS FOR IMPROVEMENT AND MADE 22 RECOMMENDATIONS, MAINLY TO STRENGTHEN ACCESS AND ADMINISTRATIVE CONTROLS, ADMINISTRATION OF INVENTORY, REDUCE DUPLICATE ENTRY, FIND SOME EFFICIENCY BECAUSE THEY DO WORK WITH A NUMBER OF DIFFERENT SYSTEMS. SO WE WANTED TO SEE IF SOME OF THOSE SYSTEMS CAN BE CAN CAN BE INTERFACED TO ELIMINATE DATA ENTRY ERRORS. AND BECAUSE YOU HAVE TO MAINTAIN AN ACCURATE RECORD OF THESE CONTROL SUBSTANCE APPLICATIONS. ALSO WE FOUND AREAS OF DISPOSITION, DISPOSITION AND DESTRUCTION. YOU KNOW, SOME OF THOSE EXPIRED DRUGS WERE RETAINED AND THEY WERE NOT RETAINED IN A PROTECTED AREA AT THE TIME WHEN WE DID THE AUDIT. ALSO, WE WANTED THEM TO ENHANCE THEIR POLICIES AND PROCEDURES. HAPPY TO REPORT THAT FROM A ADMINISTRATION AND INVENTORY PERSPECTIVE, THE FIRE DEPARTMENT IMPLEMENTED OPERATIVE IQ FOR NARCOTICS TRACKING, ESTABLISHED RECONCILIATION PROCESS BETWEEN SYSTEMS, DEVELOPED AUTOMATED REPORTING TO IDENTIFY DISCREPANCIES AND RED FLAGS. 
          FROM A DISPOSAL PERSPECTIVE, THEY HAVE COMPLETED DEA FORM 222 AND DESTROYED THE BACKLOG OF EXPIRED MEDICATION AFTER THE AUDIT. THEY ALSO HAVE SEGREGATED DUTIES BETWEEN MED VAULT ACCESS FOR BETWEEN NON-RESPONDING PERSONNEL, IMPLEMENTED DAILY INVENTORY RECONCILIATION AND ENHANCED SEPARATION OF CRITICAL RESPONSIBILITY. THEY HAVE ALSO. 
          ONE OF THE RECOMMENDATIONS FROM US WAS TO START TRACKING EACH WHILE. AND THEY DID HAVE THAT CAPACITY. SO THEY HAVE SELECTED AND IMPLEMENTED OPERATIVE ICU'S NARCOTIC TRACKING FUNCTIONALITY, AND THEY ARE TRACKING EACH ONE OF THOSE WHILE SEPARATE. SO WE HAVE A TRACKING FROM CRADLE TO 
          [03:05:03]
GRAVE. SO A LOT OF PROGRESS HAVE BEEN MADE. CURRENTLY THEY'RE STILL DEVELOPING FINALIZING THEIR POLICIES AND PROCEDURES. THEY STILL DO HAVE A LITTLE BIT OF EXPIRED CONTROLLED SUBSTANCES WHICH THEY ARE WORKING ON DISPOSING. ALSO THEY'RE ENHANCING CONTINUE TO ENHANCE ACCESS CONTROLS. SO VERY POSITIVE. REPORT TO THE AUDIT COMMITTEE IN A NUTSHELL. 
          MAYOR. THOSE WERE THE FIVE ITEMS THAT WE DISCUSSED. SO I'LL TAKE ANY QUESTIONS ANY QUESTIONS COUNCIL. PRO TEM. THOSE WERE SIGNIFICANT AUDITS TO SIT THROUGH. THEY WERE VERY DETAILED. AND I THANK YOU AND YOUR STAFF FOR PRESENTING THEM. YOU WENT YOU TOOK THE YOU TOOK THE SPEED READING CLIFF NOTES VERSION OF IT TONIGHT. AND THANK YOU FOR THAT. BUT BUT THEY WERE VERY DETAILED AND WHAT THEY PRESENTED TO US. THANK YOU, THANK YOU, THANK YOU, THANK YOU SIR. AND MORE. YES, SIR. OKAY. COUNCIL. I THINK IT VERY IMPORTANT THAT AS HE HAS GONE THROUGH THESE DIFFERENT REPORTS TONIGHT, HE DID GO THROUGH THEM VERY HIGH LEVEL AND VERY QUICKLY. AT THE SAME TIME, I THINK IT VERY IMPORTANT THAT YOU RECOGNIZE THAT YOU UNDERSTAND THAT WHEN THESE COME TO YOU, THERE ARE, AS YOU HEARD A COUPLE OF TIMES THERE THERE WERE FINANCIAL RESPONSIBILITIES, OBLIGATIONS THAT WE COULD HAVE TAKEN ACTION ON AND SO ON AND SO FORORTH. BUT AT THE SAME TIM, WE TAKE A LOT OF OUR DIRECTION FROM THE AUDIT COMMITTEE IN THE DIRECTION OF WHICH WE'RE GOING TO GO, BUT DO UNDERSTAND THAT ALL OF THESE REPORTS ARE PLACED. 
          CAN YOU TELL US WHERE THEY CAN GO AND SEE THESE REPORTS? SO ALL OF THESE REPORTS ARE NUMBER ONE. AUDIT REPORTS ARE POSTED ONLINE UNLESS IF IT'S A CONFIDENTIAL REPORT, FOR EXAMPLE, IF WE'RE DOING AN IT SECURITY AUDIT, IT WILL NOT BE ONLINE. BUT ALL THE OTHER REPORTS ARE POSTED ON CITY'S WEBSITE. AND FOR COUNCIL MEMBERS, THESE ARE POSTED BEFORE THE AUDIT COMMITTEE IN YOUR AUDIT COMMITTEE BOX ACCOUNT AS WELL AS YOUR TEAM'S FOLDER. SO IT IS THERE AS WELL. AND RIGHT AFTER THE AUDIT COMMITTEE, I KNOW I USUALLY SEND AN EMAIL WITH A COPY OF THIS REPORT, AND I DO MEET WITH JED ON A REGULAR BASIS, USUALLY BEFORE WE HAVE MEETINGS. BY THE WAY, WE DO HAVE A MEETING TOMORROW, VERY BRIEF, VERY QUICKLY. OKAY. BUT I MEET WITH HIM AND WE DISCUSS ALL OF THESE DOCUMENTS. I THINK IT AGAIN, I THINK IT VERY IMPORTANT THAT AS WE CONDUCT AN AUDIT, THE INITIAL AUDITS NORMALLY ARE SITUATIONS WHERE WE FIND ABUSE, WE FIND WAYS WE FIND THINGS OF THAT NATURE. BUT IT'S NOT SO MUCH THAT REPORT THAT CONCERNS ME THE MOST IS THAT REPORT. WHEN WE COME BACK LATER TO FIND OUT WHAT MANAGEMENT OR WHOEVER IT WAS, WHAT THEY HAVE DONE IN ORDER TO RECONCILE OR IN ORDER TO CORRECT. THOSE ARE THE ONES THAT TRULY WE THINK, I THINK THAT YOU WANT TO PAY VERY PARTICULAR ATTENTION TO, BUT IT'S VERY IMPORTANT THAT YOU GO OUT AND THAT YOU READ THOSE DOCUMENTS. YOU HAVE OUR MEETINGS, THEY'RE POSTED. WE ENCOURAGE YOU TO COME AND BE WITH US. MOST OF THESE REPORTS COME FROM THE AUDIT DIRECTOR AND HIS STAFF. ARE THEY COME FROM YOU? YOU ASK FOR DIFFERENT AUDITS TO TAKE PLACE. AND WHEN THAT TAKES PLACE, OF COURSE, I REALLY DO EXPECT THAT YOU MIGHT WANT TO COME AND BE WITH US IN ORDER TO JUST VALIDATE AND MAKE US AWARE OF WHAT IT IS YOU'RE TRULY LOOKING FOR. BUT WITH THAT, I DO WANT TO SAY AGAIN TO JED ANDD TO HIS STAFF, THANK YOU FOR THE WORK THAT YOU DO. IT'S SIGNIFICANT. IT IS SIGNIFICANT IN THAT WE DO MANAGE TO FIGURE OUT POLICIES, PROCEDURES. OFTENTIMES THAT'S WHAT THE PROBLEM TRULY IS. WE'RE NOT FOLLOWING OUR OWN POLICY AND PROCEDURES. WHEN WE DO THAT, IT MAKES IT SO MUCH BETTER IN THE MANNER BY WHICH WE FUNCTION AND OPERATE IN THE WAY OF OUR TRANSPARENCY WITH CATCHING PROBLEMS. AND THAT'S WHAT WEE LY ON AS IT RELATES TO OUR AUDIT DEPARTMENT. THANK YOU SO VERY MUCH FOR THE WORK THAT YOU DO AND YOU AND YOUR STAFF. 
          THANK YOU. CHAIRMAN. MAYOR, IF I MAY SAY ONE WORD, I FORGOT TO THANK FIRE CHIEF AND HIS STAFF FOR WORKING ON IMPLEMENTING THOSE CONTROLS. I DO WANT TO, YOU KNOW, LET THEM KNOW. WE REALLY APPRECIATE THAT. ALSO, I WANT TO I WANT TO MENTION ONE THING. MIKE AND HIS TEAM LEADERSHIP MATTERS. AND, YOU KNOW, WHEN YOU THINK ABOUT THE THE TONE AT THE TOP, YOU KNOW, THE COOPERATION THAT WE RECEIVE DURING THE AUDIT, IT COMES FROM THE TOP. SO I REALLY DO 
          [03:10:01]
APPRECIATE MIKE AND HIS LEADERSHIP TEAM. WE FEEL LIKE WE WORK TOGETHER TO SERVE THE CITY BETTER. AND THAT'S, THAT'S THE ONLY INTENT FROM AN AUDIT PERSPECTIVE. WE'RE NOT HERE TO FIND FAULTS TO TO PUT IT IN THE REPORT. THIS IS ALL ABOUT ENHANCING OPERATIONS. AT THE SAME TIME, UNDERSTANDING WE DO HAVE LIMITS AND RESOURCE LIMITS. BUT CONSIDERING ALL OF THAT, YOU KNOW, WHAT CAN WE DO THE BEST, ESPECIALLY GOING FORWARD? YOU WILL SEE AFTER THE ADOPTION OF THE STRATEGIC PLAN, YOU KNOW, WE'RE GOING TO FOCUS ON SOME OF THOSE AREAS AS WELL, HOW WE CAN WORK TOGETHER TO ENHANCE AND SERVE THE CITY BETTER. SO I DO WANT TO I DO WANT TO MENTION, I REALLY DO APPRECIATE MIKE FOR HIS SUPPORT. THANK YOU. AND I MUST COMMEND YOUR TEAM AS WELL FOR THEIR THOROUGHNESS. AND ALWAYS, LIKE YOU SAID, DOING, YOU KNOW, TRYRYING TO IMPROVE GARLAND AS MUCH AS POSSIBLE THROUGH THESE AUDITS AND APPRECIATE YOU AND YOUR TEAM. 
          [13. Travel Expenses Related to Councilmember Moore's Attendance at the 2026 Infrastructure Summit]
THANK YOU SIR. THANK YOU. NEXT ITEM ON OUR AGENDA IS TRAVEL EXPENSESELATED TO COUNCIL MEMBER MOORE'S ATTENDANCE AT THE 2026 INFRASTRUCTURE SUMMIT. COUNCIL MEMBER MOORE. MR. MAYOR, SERVING ON THE REGIONAL TRANSPORTATION COMMISSION RTC, AS WELL AS DRMC HAS HELPED US TREMENDOUSLY IN THE WAY O UNDERSTANDING WHAT'S HAPPENING IN THIS REGION. AND THIS IS ONE OF THOSE MEETINGS THAT WILL CERTAINLY HELP US AS IT RELATES TO THE DIFFERENT TRANSPORTATION METHODOLOGIES THAT ARE TAKING PLACE. I THINK THAT IT'S SOMETHING THAT I GO TO IT. I'LL BE ABLE TO BRING BACK INFORMATION THAT'S GOING TO CONTINUE TO HELP US AS WE GO FORWARD WITH OUR PLANNING FOR THE CITY OF NEW ORLEANS. OKAY. ANY QUESTIONS? COUNCIL MEMBER MOORE, ABOUT TRAVEL. I SEE NONE. THEN COUNCIL. I'LL ASK FOR A CONSENSUS RELATED TO HIS TRAVEL EXPENSES. THIS IS TO THE INFRASTRUCTURE SUMMIT COMING UP IN AUGUST IN LAS COLINAS. ALL IN FAVOR AND IS UNANIMOUS. I LOOK FORWARD TO THE REPORT WHEN YOU RETURN, SIR. YES, SIR. NEXT 
          [14. ​Councilmember Ed Moore
Mark "Vince" Falsarella - Parks & Recreation Advisory Board]
ITEM ON OUR AGENDA IS CONSIDER APPOINTMENTS TO BOARDS AND COMMISSIONS. COUNCIL MEMBER MOORE, YOU HAVE AN APPOINTMENT TO THE PARKS AND RECREATION ADVISORY BOARD TOMORROW, AND 
          [15. Garland Youth Council Appointments]
THEN ITEM NUMBER 15 IS OUR GARLAND YOUTH COUNCIL APPOINTMENTS. MAYOR PRO TEM, I ASK THAT YOU WOULD MAKE MY NOMINEES FOR ME. RIGHT NOW. NO. NOT YOU. ARE OUR NEW. OUR NEW MAYORRO TEM. USUALLY IT'S ME MAKING THE MISTAKES ON WHOSE TITLES HAVE CHANGED. BUT ALL RIGHT, SO WE WILL HAVE THOSE ON OUR MEETING TOMORROW. I LOOK FORWARD TO ALL THE YOUTH COUNCIL AND WHAT THEY'RE GOING TO DO FOR THIS UPCOMING YEAR. ALL RIGHT. COUNCIL, DO WE HAVE 
          [ ANNOUNCE FUTURE AGENDA ITEMS]
ANY FUTURE AGENDA ITEMS TO ANNOUNCE? WE'LL START WITH DEPUTY MAYOR PRO TEM DUTTON. I WOULD LIKE STAFF TO LOOK AT DEVELOPING AN ANNUAL INTERGOVERNMENTAL RELATIONS CALENDAR WHERE WE CAN HAVE OUR DIFFERENT KEY PARTNERSHIP ENTITIES LIKE DART, THE WATER DISTRICT, OUR COMMISSIONER. COME ON AN ANNUAL BASIS AND JUST KIND OF GIVE US AN UPDATE ON WHAT THEY'RE WORKING ON, PROJECTS JUST SO WE CAN REALLY TRY TO WORK ON WORK, BUILDING THOSE RELATIONSHIPS WITH EACH OF THOSE ENTITIES AS A WHOLE, INSTEAD OF KIND OF BEING OUTSIDERS. OKAY, I AGREE WITH THAT. LET'S PUT THAT ONE DOWN THERE. ANY OTHER. THAT'S IT. 
          ALL RIGHT. THANK YOU MA'AM. COUNCIL MEMBER THOMAS COUNCIL, I WANT TO REFER THIS ITEM TO THE TERM COMMITTEE TRAFFIC STY ON THE SOON TO BE FINISHED ROAD. AND SEVERAL PEOPLE ASKED ME ABOUT ARE WE GOING TO PUT A FOUR WAY STOP HERE? HERE? THAT'S GOING TO BE A HIGH SPEED HIGHWAY NOW THAT IT'S REDONE. AND SO IS IT APPROPRIATE FOR ME TO ASK FOR THAT FOR A ROAD THAT DOESN'T REALLY EXIST YET, OR WE CAN CERTAINLY HAVE. IT WOULD BE A FUTURE AGENDA LATE IN THE FALL, SOME KIND OF STUDY THERE. WE CAN HAVE OUR TRANSPORTATION DIRECTOR TAKE A LOOK AT THAT AND POSSIBLY GIVE A PRESENTATION IN THE FUTURE. 
          YEAH. OR TO THE COMMITTEE FIRST. YEAH. AND THEN ALSO HAVE A SECOND BY COUNCIL MEMBER. LOOK. 
          THANK YOU. ANY OTHER THINGS? THAT'S ALL RIGHT. THANK YOU SIR. MAYOR PRO TEM, THANK YOU, MR. MAYOR. LET'S SEE. I HAVE ONE ON. LET'S SEE RANGE DRIVE BETWEEN FIRST STREET AND NORTH FOURTH STREET. THE NARROW INDUSTRIAL CORRIDOR WITH AUTO BODY SHOPS, REPAIR SHOPS AND RECYCLING 
          [03:15:01]
CENTERS. AND THERE IS VEHICLE PARKING CONTINUOUSLY ON THAT ROAD. WE HAVE SOME DEVELOPMENT THAT IS COMING BEFORE US TOMORROW. I'D LIKE FOR US FOR THE TRANSPORTATION MOBILITY COMMITTEE TO LOOK AT EVALUATING OPTIONS RANGING FROM NO PARKING SIGNAGE TO OVERNIGHT PARKING RESTRICTIONS. SECOND BY COUNCILMEMBER LOOK. ANYTHING ELSE? SIR? I DO ALL RIGHT. FILM AND TELEVISION PRODUCTION. I UNDERSTAND GARLAND IS WORKING TO BECOME A MORE COMPETITIVE, BECOME MORE COMPETITIVE FOR FILM AND TELEVISION PRODUCTION. I'D LIKE TO REQUEST A STAFF BRIEFING ON WHAT'S UNDER CONSIDERATION, INCLUDING INCENTIVES, EDUCATION AND INFRASTRUCTURE CONSIDERATIONS. AND THIS WOULD HELP THE COUNCIL TO BE PART OF THE PUBLIC PROCESS. SECOND BY COUNCIL MEMBER LUCK. ALL RIGHT. AND THIRD AND LAST, DEDICATED MOTORCYCLE PARKING FOR DOWNTOWN GARLAND CITY SQUARE. WE. AS WE CONTINUE IMPROVING THE DOWNTOWN EXPERIENCE, I'D LIKE STAFF TO LOOK AT ADDING A DEDICATED MOTORCYCLE PARKING ZONE NEAR GARLAND CITY SQUARE. MOTORCYCLES VISITING DOWNTOWN ARE CURRENTLY LIMITED TO REMOTE PARKING OR THE PARKING GARAGE, AND I'VE OBSERVED FREQUENT PARKING ON SIDEWALKS AND PEDESTRIAN RAMPS. AS A RESULT, THEY LIKE TO PARK CLOSE. PEOPLE CAN SEE THEM GET OFF THEIR MOTORCYCLES AND KEEP AN EYE ON THE MOTORCYCLES. AND MY SUGGESTION IS THAT WE LOOK AT THE TREED AREA ACROSS FIFTH STREET, AND THAT COULD ACCOMMODATE A SMALL, TASTEFUL CLOSE END MOTORCYCLE PARKING ZONE. AND MY SUGGESTION WOULD BE THAT WE DO NOT REMOVE THE TREES AND KEEP IT NATURALLY SHADED AND NOT DEGRADE THE DOWNTOWN EXPERIENCE. SECOND, I LOOK. THAT'S IT. THANK YOU SIR. COUNCILMEMBER MOORE. THANK YOU, MR. MAYOR. I'VE HAD THIS CONVERSATION WITH OUR CITY MANAGER, AND HE ASSURED ME THAT WE DO HAVE AN OPPORTUNITY TO TAKE A LOOK AT IT, PROBABLY ALL OF US SOMEWHERE IN THAT AREA. BUT WE REALLY DO NEED TO TAKE A SERIOUS LOOK AT THE TRASH BUILDUP. DEBRIS AND LOGS THAT COME IN ON THE LAKE RAY HUBBARD AREA AS IT RELATES TO IT COMING UP INTO THE NEIGHBORHOODS. I'M GETTING A LOT OF PEOPLE ASKING WHO'S RESPONSIBLE FOR IT. AND AS YOU KNOW, THIS IS NOT THE FIRST TIME WE'VE HAD THIS DISCUSSION AND TALKED ABOUT THIS. I THINK IT'S TIME FOR US TO REALLY TAKE A SERIOUS LOOK AT WHO IS RESPONSIBLE. ARE WE? AND IF WE ARE RESPONSIBLE, WHAT OUR RESPONSIBILITIES ARE, IF THEY'RE NOT, THEN WE NEED TO SO STATE SUCH AS OUR CITIZENS WILL UNDERSTAND. THEY WILL KNOW EXACTLY THE CHALLENGES THAT WE FACE AS WE DEAL WITH THE DEBRIS AND THE TRASH THAT COMES IN ON THAT AREA. I DON'T KNOW WHAT COMMITTEE TO GIVE THAT TO, BUT I DO KNOW THAT THERE IS A NEED FOR IT, AND WE HAVE TO HAVE SOME TYPE OF LEGISLATION AS WE MOVE FORWARD. RIGHT. SECOND BY COUNCILMEMBER CARRAWAY. ANYTHING ELSE, SIR? THAT'S IT. MR. CITY MANAGER, YOU HAVE ALL THOSE. I DO, OKAY. VERY GOOD. ANYTHING ELSE? ANY OTHER FUTURE AGENDA ITEMS? ALL RIGHT. THEN 
          [ EXECUTIVE SESSION]
WE'LL MOVE ON TO EXECUTIVE SESSION CITY COUNCIL RECESS FROM THE OPEN SESSION AND CONVENE IN A CLOSED EXECUTIVE SESSION PURSUANT TO SECTIONS FIVE FIVE, 1.071551.086 AND 552.133, THE TEXAS GOVERNMENT CODE TO DISCUSS THE FOLLOWING MATTER COMPETITIVE MATTERS RELATED TO GARLAND POWER AND LIGHT AS IT PERTAINS TO THE QUARTERLY BRIEFING FROM THE RISK OVERSIGHT COMMITTEE, 551.086 AND 552.133 AND ATTORNEY CLIENT COMMUNICATION RELATED TO THE SAME. 551.071 IT IS.
* This transcript was compiled from uncorrected Closed Captioning.