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SESSION.AND 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 5 0 5 CENTERVILLE MF LLC, THEY'LL BE HEARD AT A LATER DATE.
OUR FIRST ITEM ON OUR AGENDA IS PUBLIC COMMENTS ON WORK SESSION ITEMS. MADAM SECRETARY, DO WE HAVE ANY SPEAKERS? EXCUSE ME.
CAN WE HAVE MICHAEL J BETS SMILES AT WOMAN? SHE SMILES GESTURES.
MADAM SECRETARY, DO WE HAVE ANY SPEAKERS SIGNED UP FOR PUBLIC COMMENTS TONIGHT? YES SIR.
ITEM NUMBER 10, JAMES COOK TEXT MICHAEL J BETS TEXT DYLAN HEDRICK ON, UH, IS THAT OUR ONLY SPEAKER SIGNED UP FOR? UM, YES SIR.
I WOULD LIKE TO HAVE THAT SPEAKER.
WE WILL, UH, DO THE PRESENTATION AND THEN HAVE THE SPEAKER DYLAN LOOKS AT PAPERS, THEN MICHAEL AT SCREEN FOLLOWING THAT ITEM PRESENTATION.
FIRST ITEM I UNDERSTAND IS CONSIDERING THE, THE CONSENT AGENDA FOR TOMORROW'S MEETING COUNSEL, I'VE HAD, HAD ANY REQUEST TO PULL ANY ITEMS. YOU HAVE ABOUT 24 HOURS TO DO SO THAT FOLDS PAPER.
NEXT ITEM ON OUR AGENDA IS WRITTEN BRIEFINGS.
ITEM NUMBER ONE IS ANNUAL PERFORMANCE UPDATE ON THE CITY OF GARLAND HOUSING AGENCIES 2025 TO 20 29 5 YEAR PLAN AND ADMINISTRATIVE PLAN APPROVAL.
EDWARD BY MEMORIAL JUSTICE ASSISTANT GRANT WOMAN ON RIGHT LOOKS OF LAPTOP AND PHONE.
ITEM NUMBER THREE IS TWBD GRANT, APPLICATION FIRE WHEEL PUMP STATION.
PROJECT ITEM NUMBER FOUR IS RESOLUTION APPROVING A JOINTLY OWNED MUNICIPAL, A JOINTLY OWNED FACILITY EXCHANGE TRANSACTION BETWEEN ENCORE AND THE TEXAS MUNICIPAL POWER AGENCY.
MICHAEL J BETS LOOKS THOUGHTFUL AND ITEM NUMBER FIVE IS AMENDMENT TO THE CIVIL SERVICE CLASSIFICATION ORDINANCE FOR POLICE AND FIRE CITY MANAGER MICHAEL J BETS LOOKS DOWN AT PAPERS.
WE'LL MOVE ON TO VERBAL BRIEFINGS.
ITEM NUMBER SIX IS INTERVIEW FOR APPOINTMENT TO THE TEXAS MUNICIPAL POWER AGENCY.
THE WOMAN ON THE RIGHT PICKS UP PAPERS.
ALRIGHT, MADAM, MADAM SECRETARY, WOULD YOU PLEASE CALL OUR FIRST APPLICANT? YES, SIR.
LAN'S LEFT, THEN FORWARD THE WOMAN ON THE RIGHT SORTS THROUGH PAPERS.
ALRIGHT, SIR, PLEASE INTRODUCE YOURSELF AND TELL US WHY YOU'RE APPLYING TO THE BOARD.
I'M THE DEPUTY GENERAL MANAGER OF GARLAND POWER AND LIGHT.
UH, I'M HERE, UH, 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.
UH, OBVIOUSLY THERE'S, UH, THINGS THAT HAVE THE BUSINESS OF TMPA HAS KIND OF WOUND DOWN OVER THE YEARS, AND SO WE BASICALLY HAVE ONE MAJOR ITEM LEFT AND THAT'S THE TRANSMISSION SYSTEM.
AND, UM, TMPA IS CURRENTLY CONTINUING TO INVEST IN THE TRANSMISSION SYSTEM.
UM, AND, UH, GARLAND BEING 47% OWNERS OF THAT OBVIOUSLY ARE VERY INVOLVED.
UH, WE HAVE A CONSTRUCTION MAINTENANCE, UH, AGREEMENT WITH TMPA TO MANAGE THOSE ASSETS FOR THEM.
AND, UH, ANYWAY, UH, UH, WE WILL CONTINUE TO, TO MOVE IN THAT DIRECTION, INVEST IN TRANSMISSION AS LONG AS THE, UH, TRANSMISSION COST OF SERVICE RATE THAT TMPA EARNS IS, IS LARGER THAN WHAT GARLAND EARNS.
UH, BUT AT THE POINT IN TIME IF THAT EVER HAPPENS, WHERE THAT'S NOT THE CASE, UH, THEN THE TRANSMISSION SYSTEM WOULD LIKELY BE SPLIT UP BETWEEN THE MEMBER CITIES SO THAT THEY CAN EARN A HIGHER RATE OF RETURN THAN TPH CURRENTLY EARNING.
UH, OBVIOUSLY THAT'S IMPORTANT TO THE, UH, RATE BEARERS OF GARLAND.
UH, I'VE BEEN INVOLVED IN MANY OF THOSE ISSUES OVER THE YEARS, SO I HAVE THE HISTORY AND JUST WANNA MAKE SURE ONCE WE GET TO THAT POINT IN, IN THE INTERIM, AS WELL AS JUST MAKING SURE THAT, UH, WE'RE MAKING PRUDENT DECISIONS AT TMPA, BUT THEN ULTIMATELY IF THAT SPLIT DOES HAPPEN, MAKING SURE THAT THE INVESTMENTS THAT GARLAND RATE PAYERS HAVE MADE OVER THE YEARS IN TMPA THAT WE SEE THOSE ONCE THAT TRANSMISSION SYSTEM'S SPLIT UP, TOM HANCOCK SPEAKS INTO MICROPHONE.
COUNSEL, ANY QUESTIONS FOR THE APPLICANT? THE CONFERENCE ROOM, CITY OF GARLAND SEAL ON WALL WITH FLAGS.
THREE PEOPLE AT A TABLE ONE WRITING.
WELL, TOM, THANK I WANTED TO THANK YOU FOR YOUR YEARS OF SERVICE WITH GARLAND POWER AND LIGHT.
UM, WAS CURIOUS IF, UM, WHAT DO YOU SEE ARE THE BIGGEST OPPORTUNITIES OR RISKS FOR TMPA? YOU TOUCHED ON SOME OF THE HIGHLIGHTS OF, OF IT, BUT, UH, WHAT DO YOU, WHAT DO YOU EXPECT IN THE LONG TERM IS GOING TO BE FOR IT? YEAH.
UM, YOU KNOW, AS I SAID, UM, WE, WE, YOU KNOW, WE SHUT DOWN THE PLANT IN 2018.
UH, THAT'S IN THE FINAL, THE, UH, ENTITY THAT, UH, WE SOLD THAT FACILITY TO IS IN THE FINAL STAGES OF, UH, UH, ASKING FOR CLOSURE FROM THE TC TOM SITS A TABLE WITH GEAR.
UM, AND THEN OF COURSE THE, ALL THE MINE LAND HAS BEEN SOLD, THE LAND AROUND THE PLANT HAS BEEN SOLD.
AND SO REALLY THE MAIN THING LEFT IS THE TRANSMISSION SYSTEM.
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AND SO, UH, I DON'T KNOW THAT THERE'S A LOT OF NE RISKS THERE.UH, I THINK IT, UH, OBVIOUSLY, UH, TOM HANCOCK SITS A TABLE WITH GEAR.
YOU KNOW, WE HAVE TO BE PRUDENT ABOUT INVESTING IN THAT TRANSMISSION, UH, MAKING SURE THAT WE'RE NOT GETTING INTO SITUATIONS WHERE OUR RATE OF RETURN OR THE ASSETS THAT WE'RE INVESTING IN, UH, WOULDN'T BE RECOVERABLE UNDER THE PUC RULES.
BUT OUTSIDE OF THAT, IT'S REALLY ABOUT, IT'S, IT'S REALLY ABOUT ECONOMICS.
UH, AT THE POINT, AS I MENTIONED EARLIER, IT'S ABOUT WHEN TPAS RATE OF RETURN, HOW THAT COMPARES TO GARLAND'S RATE OF RETURN, WHICHEVER ONE OF THOSE IS HIGHER THAN WE WOULD WANT TO, UH, CAPITALIZE ON THAT RATE OF RETURN FOR OUR RATE PAYERS.
AND THESE, UM, THESE POWER LINES, THEY WERE ORIGINALLY DEVELOPED FOR A COAL BURNING POWER PLANT THAT WE HAD BACK IN THE DAY, CORRECT? CORRECT.
TEXT CHRIS OT, TEXT JOE THOMAS, DISTRICT SEVEN.
WELL, THANK YOU, YOU, THAT'S ALL THE QUESTIONS I HAVE.
ANY OTHER QUESTIONS FOR THE CANDIDATE? CANBERRA PANS TO A DIFFERENT SECTION WITH A MAN AT A TABLE.
SO THANK YOU FOR YEARS OF SERVICE TO THE CITY OF GARLAND.
HOW WILL YOU BALANCE THE GARLAND INTEREST, UH, WITH THE TMPA REGIONAL OBLIGATIONS? YES, AND AGAIN, I, I THINK IT GOES BACK TO SOMETHING I'VE ALREADY TALKED ABOUT.
UH, IT'S WHATEVER'S BEST FOR THE GARLAND RATE PAYERS.
AND CURRENTLY BASED ON THE, THE MAJOR BUSINESS THAT'S LEFT AT TMPA AS A TRANSMISSION SYSTEM, IT'S GONNA 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.
UH, AND AGAIN, WE'RE TPAS EARNING MORE THAN GARLAND IS CURRENTLY, SO IT'S IN, IT'S IN THE RIGHT PLACE.
UH, BUT AS THAT CHANGES OVER TIME, YOU KNOW, MY GOAL IS TO MAKE SURE THAT THE GARLAND RATE PAYERS ALL THE, ALL THE INVESTMENT AND MONEY THEY PAID INTO TMPA OVER THE YEARS IS REALIZED.
WELL, TOM, YOU'VE SAT IN THAT SEAT QUITE OFTEN DURING THE PAST SIX YEARS THAT I'VE SAT HERE AND PROVIDE THIS AND CARRYING US THROUGH TO ENSURE THAT WE HAVE GOTTEN THE VERY BEST OUT OF THE ANY YOUR SERVICES ACT GET.
MY QUESTION TO YOU IS, AT THIS POINT, WHAT DO YOU SEE AS BEING PROBABLY THE MOST IMPORTANT THING THAT YOU WOULD BRING TO GMPA THAT MAYBE THEY DON'T HAVE PRESENT WITH? YEAH.
UH, MR. JEFFRIES AND MR. RAT HAVE DONE A GREAT JOB OVER THE YEARS.
UM, YOU KNOW, PRIOR TO MY 16 YEARS HERE AT GARLAND, I WAS WITH, UH, BRYAN TEXAS UTILITIES, WHICH, WHICH IS ALSO A MEMBER OWNER OF TMPA.
I WAS THERE FOR EIGHT YEARS AS WELL.
SO, YOU KNOW, I HAVE A, A LOT OF EXPERIENCE WITH T-M-P-A-I, I KNOW THE HISTORY.
I'M FAMILIAR WITH THE ISSUES THAT WE'VE DEALT WITH, WITH THE ISSUES THAT ARE GOING FORWARD.
UM, I HAVE A BROAD INDUSTRY KNOWLEDGE OF, OF THE TRANSMISSION SYSTEM, THE MARKET IN GENERAL.
UH, I WAS SERVED ON THE ERCOT 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.
UH, SO REALLY IT'S JUST, UH, A LOT OF EXPERIENCE AND UNDERSTANDING OF THE MARKET, UM, AND BRINGING THAT, YOU KNOW, BRINGING THAT TO THE TABLE.
THANK YOU FOR THE SHERIFF THAT YOU BRING TO THE OPPORTUNITY.
ANY OTHER QUESTIONS? ALRIGHT, NONE.
MADAM SECRETARY, WOULD YOU PLEASE CALL OUR NEXT APPLICANT, JOSEPH DIRK JULIUS JENKINS, INTRODUCE YOURSELF AND TELL US WHY YOU WANNA SERVE ON THIS BOARD.
CERTAINLY, THANK VERY MUCH GOOD EVENING EVERYONE, AND THANK YOU FOR THE OPPORTUNITY TO SPEAK WITH YOU.
I'M AN MUNICIPAL ATTORNEY FOR THE CITY OF DALLAS, UH, WHERE I, UH, LITIGATE CLAIMS AGAINST NUISANCE PROPERTY OWNERS.
I'M ALSO, UH, UH, GARLAND PROUD GARLAND RESIDENT DISTRICT TWO, BEEN LIVING IN THAT DISTRICT, EXCUSE ME, FOR 10 YEARS.
UH, DURING THAT TIME I'VE SERVED ON MY HOA, I'VE SERVED AS A BOARD MEMBER FOR NAVAJO HOPE CLINIC, AND I'VE, UH, HAD AN OPPORTUNITY TO SERVE AS A GARLAND, UH, ZONING COMMISSIONER.
UH, I AM INTERESTED IN SERVING THE BOARD FOR, UH, ONE REASON AND ONE REASON ONLY TO BE OF SERVICE AND TO LEARN EVERYTHING THAT I POSSIBLY CAN ABOUT, UH, WHAT IT MEANS TO BE A RESIDENT OF THE CITY OF GARLAND.
UH, IN EFFECT, I UNDERSTAND THAT THE, UH, TMPA WAS CREATED OUTTA A SE SETTLEMENT AGREEMENT OUTTA A CONFLICT BETWEEN, UH, DIFFERENT, UH, MUNICIPALITIES, UH, RELATING TO, UH, THE SUPPLY OF POWER.
UH, I RECOGNIZE THAT YOU'VE ALL HAD SOME OUTSTANDING LEADERS IN THE POSITION BEFORE.
SO MY OBLIGATION AND DUTY WOULD BE, AGAIN, TO LEARN EVERYTHING THAT I POSSIBLY CAN TO PROTECT
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WHAT I SEE TO BE, UH, GARLAND'S, UH, BIGGEST ASSET, UH, AT THIS POINT, WHICH IS GPNL, AND OF COURSE ITS RESIDENTS.ALRIGHT, ANY QUESTIONS FOR THE APPLICANT? TEXT MICHAEL J BETS CITY MANAGER.
TEXT DYLAN HEDRICK, MAYOR, COUNCIL MEMBER THOMAS, TABLE TEXT MARGARET LUCK, DISTRICT EIGHT.
UM, DISCLOSURE, JULIUS AND I WERE CLASSMATES IN LEADERSHIP GARLAND 44, THE BEST CLASS.
YOU KNOW, THEY'RE IN THE CULT.
MICHAEL J BETS LOOKS FORWARD AND SLIGHTLY DOWN AT HIS LAPTOP.
SO, UM, YOU HAVE SERVED ON SOME BOARDS AND COMMISSIONS.
SO, UM, 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, I HEAR THAT THE AGENCY IS WINDING DOWN.
WHAT I'M CONCERNED ABOUT IS WHEN YOU LOOK AT THE BUDGET STATEMENTS PAST FEW QUARTERS, YOU SEE UNICAL UNANTICIPATED COSTS REGARDING THE TRANSMISSION LINES AND THEIR MAINTENANCE.
I BELIEVE THAT MORE QUESTIONS ARE NECESSARY REGARDING THAT.
UH, WHETHER OR NOT IT WOULD BE THE APPLICANT TURNS HIS HEAD, RAISES HIS HAND, UM, REASONABLE CONSIDERING THE CONFLICT THAT OCCURRED PREVIOUSLY TO HAVE THE AGENCY IN A POSITION WHERE IT IS WINDING DOWN AND NO LONGER SERVING THE INTEREST OF THE REGION AS OPPOSED TO RELIANCE UPON INDIVIDUAL MUNICIPALITIES AND THEIR OWN ENERGY, UH, GENERATION.
UM, SO I BELIEVE THAT, AGAIN, QUESTIONING OPEN MINDS, UH, LEARNING MORE ABOUT THE PROCESS IS, IS PROBABLY, UH, A GOOD IDEA AT THIS POINT.
COUNCIL MEMBER MOORE MAYOR, SEE YOU JULIUS.
AND, UH, UH, TO ALSO WANNA JUST ECHO, WE THINK OUTSTANDING JOB AS IT RELATES TO THE PLANNING COMMISSION.
YOU DO KNOW THAT SO MUCH TODAY IS BEING WORKED OUT IN THE SOCIAL MEDIA ARENA.
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, UH, 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.
MAKING SURE THAT THOSE QUESTIONS BEING A PUBLIC AGENCY, ALL THAT INFORMATION IS, IS PUBLIC.
SO MAKING CER UH, MAKING CERTAIN THAT THAT INFORMATION IS PROVIDED AHEAD OF TIME.
UH, AND AGAIN, YOU CAN'T ANTICIPATE AT ALL, NOR DO I ANTICIPATE THAT WE SHOULD.
UH, BUT BEING PREPARED TO BE HONEST AND TRANSPARENT AND AUTHENTIC, UH, WHEN WE CAN.
I HOPE THAT ADDRESS YOUR QUESTION.
ANY OTHER QUESTIONS FOR THE APPLICANT? COUNSEL TWO MEN SIT AT A TABLE WITH CITY OF GARLAND SEAL AND FLAGS, VIEWING MONITORS.
THANK YOU MADAM SECRETARY, WOULD YOU PLEASE GIVE ONE MORE CALL FOR THE PREVIOUS APPLICANT? YES, SIR.
I DO NOT SEE HIM HERE, SO COUNSEL TOMORROW.
WE'LL, MAKING THIS APPOINTMENT DURING OUR REGULAR SESSION.
MAYOR DYLAN HEDRICK PICKS UP A DOCUMENT AND REVIEWS IT.
ALRIGHT, WITH THE INTERVIEWS CONCLUDED, WE'LL MOVE ON NOW TO ITEM NUMBER SEVEN, WHICH IS GARLAND CHAMBER OF COMMERCE 2026 MID-YEAR REPORT BETS REEDS PAPERS, TOUCH HIS EAR, HEDRICK LOOKS AT PAPERS, WOMAN SORTS, PAPERS, TYPES.
I COURSE I HAD SO MANY PEOPLE FOR SO MANY YEARS TAKING SUCH GOOD CARE OF ME.
THE WOMAN ON THE RIGHT SMILES AND CONTINUES SORTING PAPERS.
CITY MANAGER BETS REEDS PAPERS AND MAYOR HEDRICK LOOKS FORWARD.
I AM GRATEFUL AND I ACKNOWLEDGE IT.
UH, THOSE OF YOU THAT HAVE BEEN ON THE COUNCIL FOR A LITTLE BIT ARE USED TO SEEING MYSELF OR ARENA UP HERE, UH, 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 A, SOME SPECIAL GUEST, JOE AMES, LEANS BACK, GOOD SELECTION OF OUR LEADERSHIP FROM THE CHAMBER.
I'D LIKE TO INTRODUCE, IF THAT'S OKAY WITH YOU GUYS.
SEAN CASTS, IF YOU'LL STAND UP.
I AM BECAUSE HE'S DOING IT FOR THE SECOND YEAR.
JOE THOMASES GESTURES AND LEANS BACK.
HOPEFULLY ROSCOE WHO COULDN'T BE HERE TONIGHT.
JOE NAES LEANS BACK, SUCCEED HIM.
SO, UH, NISHA WILLIAMS, ISHA LISA WILLIAMS STANDS WAVES, UH, BUSINESS OWNER, EXPRESS POSTAL, UH, IF YOU WANT TO TALK SMALL BUSINESS, TALK TO MISHA.
UH, I THINK SHE CAPTURED MY PRESENTATION TO THE BOARD ABOUT GETTING INVOLVED WITH JOE DOIS HOLDS GLASSES.
SHE'S ON THE BOARD AND REPRESENTS OUR SMALL BUSINESS COMMUNITY.
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RUSSELL DUCKWORTH, UH, THE BANKER, UH, SECOND GENERATION BANKER, UH, LONGTIME GARLAND PERSON SERVES AS OUR TREASURER TEXT CARISSA BUTTON AND CHAD ETT AS CHAIR, UH, OF THE CHAMBER.SECOND, THIRD GENERATION MANUFACTURER, JOE THOMAS SITS AT TABLE SECOND GENERATION.
UH, KEELER CONSULTING DOES FRACTIONAL WORK.
UH, SO IT'S, IT'S IMPORTANT TO KNOW THAT WHILE YOU SEE CORINA AND I, THIS IS LEADERSHIP OF THE CHAMBER.
THIS IS WHO I WORK FOR, THIS IS WHO, WHO REALLY MAKES THE DECISION.
SO I THOUGHT IT WAS IMPORTANT MAYBE HERE TONIGHT TOO.
LISTEN, AND FOR YOU GET TO KNOW THEM.
UM, YOU KNOW, IT OCCURRED TO ME WHEN I WAS READY FOR THIS, UH, THAT JOE HOLDS BROCHURE.
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, UH, I RECOGNIZE THAT WE'RE LIMITED TO OUR CONVERSATIONS BASED ON AGENDA.
BUT I INVITE YOU AND WE'LL, WE'LL SET UP A TIME.
THIS HISTORY OF OUR RELATIONSHIP GOES BACK LITERALLY 141 YEARS BACK TO THE STARTING OF
MOST, MOST SIGNIFICANTLY, UH, SINCE NINE FIVE WHEN THE PARTNERSHIP.
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
JOE DOIS GESTURES, UH, WHICH YOU ASK US TO DO, WE TAKE VERY SERIOUSLY.
AND THAT'S WHAT'S TONIGHT'S ALL ABOUT'S TALKING ABOUT THE THE PARTNERSHIP CONTRACT.
UH, UH, IN 2023, UH, THE CITY, YOUR JUDD'S, UH, LEADERSHIP, ANDY AND
AND IN 40,000 FOOT TERMS, THE CITY IS RESPONSIBLE FOR ATTRACTION.
THE CITY IS RESPONSIBLE FOR REDEVELOPMENT.
THE CITY IS RESPONSIBLE FOR ANY KIND OF INTERFACE WITH THE DEPARTMENT'S CONSUMER'S.
RESPONSIBILITY IS IN THESE THREE AREAS.
BUSINESS RETENTION, WHICH IS FOCUSED ON MAJOR TAXPAYERS, UH, AND PAY A SIGNIFICANT PIECE OF ECONOMY WORKFORCE, WHICH INTO WHAT THESE COMPANIES NEED.
AND THEN THE, THAT'S ALL CATEGORY WITH SMALL BUSINESS.
AND SO COURT WILL, WILL FOCUS ON EFFORTS IN THESE THREE AREAS.
THANK YOU MAYOR FOR YOUR NEWSLETTER.
WE WENT THROUGH EACH OF THESE COMPANIES.
THESE ARE, UH, OUR CONTRACT SAYS MINIMUM OF 30 VISITS A YEAR.
THIS REPRESENTS 17 VISITS IN THE FIRST HALF OF THE YEAR.
THIS IS WHAT COMPANIES ARE SAYING.
AND IF YOU LOOK AT THIS, YOU'LL SEE MORE OPERATIONAL BUSINESS CHALLENGES, A LOT OF EMPHASIS ON
WE TALK ABOUT THE EVOLUTION OF MANUFACTURING IN PARTICULAR RELATES TO AUTOMATION, ELEVATING PEOPLE'S SKILLS AS RELATES LEADERSHIP DEVELOPMENT, TEXT, BUSINESS RETENTION, SPATTERING OF, OF COST.
TARIFFS KIND OF COME AND GO, UH, IN THE CONVERSATIONS, SUPPLY CHAINS DISRUPTS.
I DON'T HEAR NEARLY AS MUCH OF THAT, UH, AS WE DID EARLY ON HERE.
UH, A LOT OF EXPANSION, WHICH IS GOOD NEWS FOR US BECAUSE WHAT'S EXPANSION HAPPENS IN TWO THINGS.
PHYSICAL PLANT, ANDERSON WINDOWS JUST WENT THROUGH AN EXPANSION WHERE THEY MOVED WALLS.
A LOT OF IT IS INTERNAL WITH THE EXPANSION OF THE AUTOMATION BUSINESS, PERSONAL PROPERTY, WHICH IS THAT HIDDEN PIECE OF THE VALUE.
THE VALUE THAT WE SEE IN REASON WE IDENTIFY THESE COMPANIES ARE, ARE
SO ALL THAT TOGETHER MAKES THIS THE FOCUS, THE REASON FOR THE FOCUS.
UH, YOU'LL SEE AUTOMATION AND AI INTEGRATION, UH, REQUIRING CAPITAL INVESTMENTS.
YOU'LL SEE THAT SIGNIFICANTLY, UH, REALLY ACROSS THE BOARD, UH, WORKFORCE, UH, SKILLS,
AND THIS IS, WE TALK ABOUT THE WORKFORCE SECTION AND OUR RELATIONSHIP WITH GARLAND PENN
WELL, WE, UH, ROCK DOUBLE THEIR PRODUCTION OF RIGS.
THEY NEED WELDERS TO THE SOUTH ER CLASS, AND THEY CLASS OF ABOUT 20 FEMALE WELDERS COME FOR ROCK.
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CONNECTIONS ABOUT, UH, AGING WORKFORCE AND SUCCESSION PLANNING CONCERNS.THIS IS WHERE, AND THIS WE'LL TALK ABOUT THIS SESSION, A LOT OF EMPHASIS ON LEADERSHIP TRAINING, PEOPLE THAT WERE 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.
UM, YOU'LL HEAR THIS REPEATED RECENT DEMAND FOR AUTOMATION, ROBOTICS, AI SKILL SETS.
THAT'S THE FUTURE OF, OF MANUFACTURING IT.
AND THAT'S REALLY, UH, WHAT LIGHT WITH THE FOLKS WE MEET WITH, UH, RETENTION, WORKFORCE, RELIABILITY ISSUES ACROSS MANUFACTURING.
THE HIRING PRESS IS, IS CALM DOWN QUITE A BIT.
THEY WERE ALL KINDS OF CRAZY BONUSES BEING PAID.
AND, AND THE PERSON GESTURES CRAFT IN PARTICULAR IS TRYING TO GET UP TO 1500, 1800 EMPLOYEES AND CALM DOWN.
THEY'RE ABOUT 1200 RIGHT NOW, AND THEY'RE GETTING MORE OUT OF AUTOMATION, BRINGING ROBOTS IN THAT REPLACES REPLACING ANYBODY BUT REPLACES HEAVY RECRUITING.
SO THE AREAS FOR SUPPORT, WORKFORCE TRAINING STRUCTURE AND UTILITY RELIABILITY.
UM, PERIODICALLY YOU'LL HEAR THINGS LIKE INFRASTRUCTURE.
THEY HAVE TRUCKS WITH WHOLE TRAILER FOLKS FULL OF WINDOWS.
IF THERE'S POTHOLES IN THE STREETS, IT'S NOT GOOD FOR WINDOWS.
FORTUNATELY THE CITY OF GARLAND AWARE OF THAT.
AND THAT'S BUSINESS REDEMPTION SLIDE CHALLENGES, WORKFORCE TRAINING.
SO THOSE ARE THE KINDS OF THINGS THAT COME AND GO QUICKLY.
OTHER THING IS, IS TRAILER PARKING IN FRONT OF BUSINESSES THAT YOUR TRANSPORTATION DEPARTMENT IS REALLY KEEN ON WITH Y'ALL'S HELP TO THAT.
SO, UH, THAT'S REALLY THE HIGHLIGHTS.
WORKFORCE DEVELOPMENT INITIATIVES, STRENGTH AND TALENT PANEL SHOWS.
GARLAND CHAMBER QUESTIONS CAN COME ANYTIME THERE, BUT I DON'T SEE ANYONE YET.
I HAD SOME AUDIENCE JUST SPACE SAID THAT I'M IN TROUBLE.
SO I MEAN, JUST SAYING, SPEAKING TO THE MICROPHONE.
THE SPEAKER GESTURES AND LEANS FORWARD.
OBVIOUSLY THE BIG ISSUE WITH, WITH ATTENTION AND, AND EXPANSION OF, OF BUSINESSES IS AROUND PEOPLE THAT'S CHANGING, UH, ON A CONSTANT BASIS, A DAILY BASIS.
THE SPEAKER REMOVES HIS GLASSES.
YOU SEE, CRAFT THAT STARTED HERE IN 1949 WAS BASICALLY DOING HAND STACKING PALLETS.
UH, TODAY YOU'VE GOT ROBOTS PUTTING CHEESE AND INTELLECTUALS, UH, 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 THINGS FOR US FOR EMPLOYMENT SIDE IS THE SHELVES 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.
FOCUS IN, UH, THREE OR FOUR AREAS.
FAME IS THE FEDERATION OF ADVANCE MANUFACTURING EDUCATION.
UH, TOYOTA STARTED ABOUT 20 YEARS AGO.
IT TURNS OUT, UH, ADVANCED MANUFACTURING TECHNICIANS AMTS A TWO YEAR PROGRAM.
YOU WORK THREE DAYS A WEEK, YOU GO TO RICHLAND COLLEGE TWO DAYS A WEEK, GET YOUR SKILLS AND, UH, SAFETY AND LEAN.
AT THE END OF TWO YEARS, OR ACTUALLY FIVE CONTINUOUS A YEAR AND A HALF, YOU'RE CERTIFIED.
UH, YOU SUCH DEGREE AND YOU'RE CAPABLE OF MAINTAINING.
AND, AND SO FAMOUS PROGRAM, THAT'S LEADERSHIP ACADEMY.
I ALLUDED TO THAT, THAT'S PROBABLY OUR MOST POPULAR CLASS RIGHT NOW.
YOU HAVE A WHOLE LOT OF TECHNICIANS THAT ARE NOW BEING PROMOTED TO SUPERVISORS AND YOU CAN BE THE BEST TECHNICIAN IN THE WORLD, BUT YOU BECOME A SUPERVISOR THE NEXT DAY.
AND UNLESS YOU UNDERSTAND CONFLICT RESOLUTION AND
SO WE HAVE A TREMENDOUS INSTRUCTURE THAT'S OUR MOST POPULAR.
WE HAVE A BASIC CLASS AND AN ADVANCED CLASS THAT FILLS UP SWEETLY, UH, HR FORUM TEXT, GARLAND CHAMBER OF COMMERCE.
LISTENING TO OUR CUSTOMERS IS, IS PRIME WITH US.
WE HAVE AN HR GROUP, UH, FROM OUR MAJOR COMPANIES, KEEPS US INFORMED AS TO DAY TO DAY WHAT THEY NEED, UH, AND FULFILLING THOSE NEEDS.
UH, RESOURCE EXPO IS ONE OF TWO PROGRAMS WE DO ANNUALLY.
THE OTHER IS MANUFACTURING DAY.
THE RESOURCE EXPO BRINGS RESOURCES TO THESE COMPANIES, UH, HELPING FOLKS GROW.
WHEN WE STARTED THE MANUFACTURERS ASSOCIATION IN 2006, WE HAD MAYBE FIVE OR SIX COMPANIES, CM A AT THAT TIME.
TODAY IT'S UPWARDS 80 COMPANIES.
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OUT OF THE 300 THAT WE HAVE IN GARLAND, THAT'S A REFLECTION OF TEXT WORK DEVELOPMENT.THE WORD THAT COMES QUICKEST TO MIND IS DIFFICULT.
THE CHALLENGE IT IS, IS TO GET MANUFACTURERS WHO BY DEFINITION ARE INDEPENDENT.
IT'S, UH, BRINGING RESOURCES TO THEM IS SOMETHING THAT YOU TAKE THE MOUNTAIN TO.
MOHAMMED SLIDE SHOWS 100 SMALL BUS RESOURCES, THREE PEOPLE SMILE.
GARLAND, CHAMBER OF COMMERCE, SMALL BUSINESS.
WE CAN SPEND A LOT OF TIME ON SMALL BUSINESS.
WE SEE STAFF AND KEISHA, UH, NISHA AND, UH, CAESAR ARE SMALL BUSINESS STAFF PERSON.
US GOVERNMENT SAYS UNDER, UNDER 500 EMPLOYEES IS A SMALL BUSINESS.
THERE'S A WHOLE LOT OF THOSE FOLKS.
UH, FOR YEARS WE'VE DONE PROGRAMS, WE'VE DONE MASSES WORKSHOPS, AND WE'VE BOUGHT THE, UH, ONLINE PROGRAMS. UH, I THINK IT'S RELATED TO HOT SHOWER.
YOU COME TO A SEMINAR, YOU GET MOTIVATED AND YOU GO AWAY AND YOU GET STUCK AGAIN, STOPS AND, UH, AND MOVE INTO ROUND TABLES, WHICH IS AN ONGOING MONTHLY, UH, PEER DRIVEN EXERCISE TO GET PEOPLE THE SKILLS THAT THEY NEED.
UH, IF YOU EVER WANT AN, UM, UH, UNBIASED AND UN BRANCHED REACTION TO THAT, LOOK AT OUR HEAD.
UH, UH, AS PART OF OUR SMALL BUSINESS, WHICH STARTED A YEAR AGO OF GARLAND BUSINESSES THAT ARE SPANISH SPEAKING.
SO WE STARTED THE GARLAND HISPANIC BUSINESS ASSOCIATION WITH THE GRAPES AND SUCCESS.
UH, COMPANIES THAT ARE COMING IN AND NOT CHAMBER MEMBERS, WE'RE NOT ASKING THEM TO BE CHAMBER MEMBERS.
AND, AND, AND CAESAR ARE BOTH BILINGUAL.
UH, AND THIS WAS THE COMMITTEE THAT'S DOING THAT.
MOVING FROM WORKSHOPS TO ROUND TABLES WITH THAT GROUP.
UH, YOU READ ABOUT THE STRATEGIC SIDE OF IT.
ANYTIME YOU TALK ABOUT PEER DRIVEN, YOU HAVE EIGHT TO 10 NOT COMPETING, SITTING IN A ROOM ON A REGULAR BASIS.
HERE'S THE PARTICIPANTS IN THE ROUND TABLE SINCE COMMON BUSINESS CHALLENGES, MARKETING STRATEGIES, BUSINESS PLANNING, CUSTOMER RETENTION, ROUND TABLE PEOPLE, BANNER 100, SMALL BUSINESS.
CESAR IS EXCELLENT ABOUT GETTING SPECIFIC EXAMPLES AND BRINGING IN SPECIFIC, SPECIFIC.
SO THAT'S, THAT'S PEER DRIVEN, UH, ROUND TABLE THAT SELLS THE CAKE.
WE, WE ADD ANOTHER LAYER OF ACCOUNTABILITY SCALE.
SO IF YOU'RE ONE ON THE SCALE MEANS WE KNOW WHO YOU ARE.
IF YOU'RE TWO ON THE SCALE, IT MEANS THAT YOU'VE ATTENDED A WORKSHOP AND WE KNOW A LITTLE BIT MORE ABOUT YOU.
IF YOU'RE THREE ON THE SCALE, MORE OF A ROUND TABLE.
FOUR AND FIVE ARE THE TWO ELEVATIONS OF OUR TABLE MEMBERS WHERE WE REALLY GET YOUR FINANCIALS.
WE REALLY GET YOUR BUSINESS DOWN.
AND SO THE GOAL IS TO MOVE PEOPLE FROM ONE TO FIVE.
AND WE CREATE THE EFFORT ON THAT WHOLE, UH, WHOLE SPECTRUM.
AND SO IT'S, THE WORD I LIKE TO USE A LOT, REGARDLESS OF WHAT WE DO, IS INTENTIONALITY, UH, WITH SPECIFIC RESOURCES THAT'S CATCHING, UH, FIRE AND, AND, UH, REQUIRES A HIGHER LEVEL OF COMMITMENT FROM PEOPLE.
THAT'S HOW YOU KNOW THEY'RE SERIOUS.
UH, PEOPLE WORKSHOP, YOU NEVER SEE 'EM AGAIN.
YOU HOPE THEY HAVE, UH, SUCCESS.
IF THEY'RE A PART OF A ROUND TABLE, YOU'RE MOVING UP THAT SCALE.
YOU'RE GUARANTEED THEY'RE GONNA BE SUCCESSFUL.
SMALL BUSINESS DEVELOPMENT WITH A TABLE OF NAMES.
WE TRY TO, UH, SPREAD THE MEMBERSHIP.
AND THE
UH, I HAD A, A QUESTION FOR
UH, I KNOW HE IS BEEN WITH CAESARS, BUT CERTAINLY IF YOU'VE GOT PEOPLE IN YOUR DISTRICT THAT, UH, ARE INTERESTED OR WOULD ALL BENEFIT FROM THIS CENTER, UH, SUPPORT THINGS THAT YOU EXPECT, FACADE IMPROVEMENTS, UH, RELOCATION OPPORTUNITIES, UH, OPPORTUNITIES, INITIATIVES, UH, AND SO ON.
SLIGHT BUSINESS GROWTH AND COMMUNITY PARTNERSHIPS.
LIST PROGRAMS LIKE RIBBON CUTTINGS, THOSE ARE THE THREE AREAS THAT ARE COVERED BY THE CONTRACT.
UH, CHAMBER DOES A WHOLE LOT OF THINGS THAT, THAT AREN'T REALLY DEFINED BY
[00:30:01]
THIS CONTRACT.AND WE HAVE SAID 141 YEARS, UH, WHICH ARE IN THE COMMUNITY DEVELOPMENT, LEADERSHIP DEVELOPMENT, BEST CLASSES, ALL OF YOU.
UH, LEADERSHIP DEVELOPMENT, WHICH PAYS DIVIDENDS AS YOU CAN SEE AROUND THIS TABLE.
UH, THE WOMEN'S, UH, GROUP, UH, THE SMALL BUSINESS GROUP.
WE GOT RID OF A MEMBERSHIP DIRECTOR A COUPLE OF YEARS AGO AND PLACED THAT PERSON WITH AN ENGAGEMENT.
UH, RONNIE'S JOB IS TO MAKE SURE THAT WE'RE NOT OUT THERE SEEKING MEMBERSHIPS.
SURE THAT PEOPLE ARE CONNECTED, GETTING RESULTS.
AND SO, UH, LEADERSHIP GARLAND AND AS A CANDIDATE SOCIAL MEDIA CAMPAIGN.
HERE ARE SOME OF OUR RIBBON CUTTINGS.
UH, AND THANK ARE ABLE TO STATE IT'S A LOT.
WHEN THE NEW BUSINESS COMES TO TOWN.
AND MAIN TITLE, BUSINESS GROWTH AND INVESTMENT.
A LIST NAMES, BUSINESSES, THAT'S WE, RELATIONSHIPS, MAIN TITLE, STRATEGIC EVENTS AND PARTNERSHIPS.
SOME STRATEGIC PARTNERSHIPS THAT CONNECT'S THE LARGEST PROBABLY AROUND NORTH TEXAS.
WE GET ANYWHERE FROM 80 TO A HUNDRED PLUS.
ONCE IT'S INTENTIONAL TABLES AND YOU MAKE, MAKE THE ROUNDS, TALK TO EVERYBODY IN THAT ROOM, LEAST FOR A MINUTE.
UH, THAT'S AGAIN, RELATIONSHIP BUILDING, STATE OF THE CITY, ALL A PART OF THAT.
I MEAN, THAT'S STATE OF THE CITY, STATE OF ART.
UH, WOMEN'S BUSINESS INITIATIVE.
UH, IF YOU KNOW LISA, SHE RUNS GREAT.
UH, FAME, GRADUATION LEADERSHIP GARLAND, STRATEGIC EVENT PARTNERSHIPS, GARLAND BANNER, TEXT GARLAND CHAMBER OF COMMERCE LOGO, ONE HALF A SECOND OFF OF SCRIPT, UH, LEADERSHIP PROGRAMS WITH CHAMBERS SAN IN DENVER AND SAN ANTONIO AND CONSULTABLE 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, ALL WHITE GUYS.
AND SO BY MY DESIGN, THESE PROGRAMS CAME INTO BEING TO, TO REFLECT THE COMMUNITY.
YOU KNOW, I, I RECOGNIZED WHEN I WAS AT THE HOUSTON CHAMBER, UH, AS BIG AS HOUSTON, BRINGING PEOPLE THAT WOULD NEVER THINK ABOUT LEADERSHIP POSITION, RECRUITING THEM INTO, THAT'S WHAT IT'S BEEN ALL ABOUT.
GRATIFYING RESULTS OF PEOPLE THAT ASCEND TO THE SERVICE OF GAR.
UH, WE CHANGED OUR, UH, CANDIDATE CAMPAIGN FROM, UH, SEVERAL YEARS AGO.
IT WAS COME TO A COME TO A, AN EVENT HALL AND, AND HAVE YOU ALL SIT UP THERE WITH MAYBE THE AUDIENCE.
UM, WE STARTED DOING THE, YOU CAN SEE 10,000 SOCIAL MEDIA IMPRESSIONS GIVES PEOPLE THE REAL, THE OPPORTUNITY TO GET TO KNOW YOU.
AND SO THAT, THAT WAS A MAJOR CHANGE.
AND, UH, I WOULD BE REAL REMISS, BUT I AM REMISS BECAUSE I DIDN'T RECOGNIZE THE MOST IMPORTANT PERSON IN THIS ROOM.
UH, CORINA OLIVER, UH, WHO'S THE MASTERMIND BEHIND THIS.
IT'S BEEN MY PARTNER FOR 32 YEARS AT THE CHAMBER.
AND THE REASON I'M SITTING UP HERE TODAY IS BECAUSE MAYBE YOU SAW THE DALLAS MORNING NEWS SATURDAY, I THINK IT WAS SATURDAY, KARINA TITLE PARTNERSHIP IN A CANDIDATE MEDIA CAMPAIGN.
UH, SHE AND JIMMY TRAN WERE RECOGNIZED AS, DIDN'T START OUT IN THIS COUNTRY, BUT GOT HERE AS QUICK AS THEY COULD.
AND SO HEARTWARMING TO UNDERSTAND THEIR JOURNEY TEXT.
BELOW GARLAND CHAMBER OF COMMERCE LOGO.
AND IN YEARS PAST, SHE SITS UP HERE AND, AND I HAD TO START WEARING SHIN GUARDS BECAUSE, YOU KNOW, MAN HANDLES PAPERS IF I WOULD BE GOING OVERTIME, UH, THE MAN CLASPED HENS AND GESTURES.
THANK YOU FOR THE OPPORTUNITY TO SERVE ANY QUESTIONS, MAYOR? I DO.
UM, SO WE DESCRIBE WHAT FAME IS.
I'M NOT FAMILIAR WITH THAT PROGRAM.
FEDERATION OF ADVANCED MANUFACTURING EDUCATION 20 YEARS AGO.
TOYOTA IS A COMPANY, AND YOU UNDERSTAND AN AUTOMOTIVE PLANT.
UH, WE ARE THE ONE IN SAN ANTONIO, 7,000 EMPLOYEES PUT A TRUCK OUT EVERY 54 SECONDS.
SO THE CRITICAL NATURE OF THAT ENTERPRISE IS KEEPING UP THAT LINE RUNNING.
SO THE DEVELOP THE PROGRAM IS A TWO YEAR PROGRAM.
THE COUNCIL MEMBER SITS AT A TABLE GESTURING
[00:35:01]
THROUGH THE PROGRAM.YOU ENGAGE WITH AN EDUCATION PARTNER.
IN THIS CASE WE'D ENGAGED WITH DALLAS COLLEGE.
UH, AND YOU HIRE PEOPLE INTO THE PROGRAM.
SO WORK THREE DAYS A WEEK FOR THE COMPANY AND MIGHT BEYOND TOYOTA.
SO THREE DAYS A WEEK, YOU'RE WORKING TWO DAYS A WEEK, YOU'RE IN A CLASSROOM PRESS, UH, CURRICULUM IS A LOT MORE THAN JUST THE TECHNICAL SKILLS BECAUSE YOU'RE TALKING ABOUT ALL THE THINGS THAT ARE NECESSARY.
PLCS FLEW POWER TO THE COUNCIL MEMBER.
GESTURES 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 TEACH CURIOSITY.
THEY TEACH HOW TO WELL-ROUNDED PERSON.
SO WHEN YOU COME OUTTA THAT PROGRAM, AFTER TWO YEARS, YOU'VE GOT AN ASSOCIATE'S DEGREE, YOU'RE HALFWAY TO AN ENGINEERING DEGREE, MORE THAT YOU'RE CERTIFIED AND ALL RIGHT TO WORK.
YOU'VE BEEN, YOU'VE BEEN ON THE JOB PLANNING THREE DAYS A WEEK.
SO, UH, IT'S EXPANDED TO I THINK 3 40, 4 45 CHAPTERS AROUND THE COUNTRY NOW.
WE'VE HAD THE CHAPTER HERE FOR ABOUT FOUR YEARS.
SO IT'S, IT, UM, CHAMBER ISN'T LEADING THAT PROGRAM.
UH, AND THEN THE, THE, THE LEADERSHIP AT THE TIME THAT TOYOTA HAD, IT WAS EACH OF THEIR PLANTS.
SO THEY HAD A COMMITTEE OF, OF PEOPLE WORKING FOR TOYOTA THAT WORKED.
SINCE THEN, THEY'VE GONE TO IMPROVE THEIR LEADERSHIP FROM THE PROGRAM, THE WHOLE PROGRAM OVER TO THE NATIONAL ASSOCIATION.
WE, WE MANAGE THE DALLAS FAME CHAPTER.
SO IT'S OUR, IT'S OUR CHAPTER THAT WE LEADERSHIP, WE RECRUIT, WE TRAIN.
I SAW YOU HAVE A QUARTERLY NETWORKING DIRECT CONNECT.
UM, 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 GONNA HAVE ONE THIS WEEK.
UH, AND THEN THE MAN GESTURES WITH HIS RIGHT HAND, WE'LL DO A, HE BRINGS HIS HANDS TOGETHER AND LOOKS TO HIS LEFT.
BUT NO DIRECT CONNECT IS MONTHLY AND I THINK I'VE BEEN TO ONE.
UM, AND IS THERE A FEE TO ATTEND THAT OR IF YOU REMEMBER? NOT.
IF YOU'RE JUST ANY, IT'S A, IT'S A NOMINAL.
UM, UM, HOW MANY CURRENT ACTIVE MEMBERS DO YOU HAVE? FOUR.
AND WHAT'S YOUR RATIO OF DUES TO NON-DUES REVENUE COUNCIL MEMBERS? MILES, GESTURES, LIKE A CHAMBER PERSON.
UH, THE, UH, OFF THE TOP OF MY HEAD, TOP OF QUEEN'S HEAD NON-NEWS VERSUS DUES 50 50.
IT'S HARD TO GET TO THAT 60 40 THAT WE ALL STRIVE TO
UM, SO, UH, GOING BACK TO THE SMALL BUSINESS SLIDE WHERE YOU HAD THE BUSINESSES LISTED ON THE RIGHT, UM, HOW MANY, UH, HOW MANY OF THOSE BUSINESSES THAT IT, THAT PARTICIPATED IN THE ROUND TABLES ARE MEMBERS OF THE CHAMBER? OR MAYBE EVEN HOW MANY, DID YOU GET ANY MEMBERSHIP FROM THOSE ROUND TABLES? IT'S NOT DESIGNED.
I MEAN, PART OF OUR CONTRACT WITH THE CITY IS JIMMY ASKED THAT QUESTION TODAY.
UH, YOU KNOW, WE SERVICE EVERYBODY.
SO MEMBERSHIP IS NOT A BARRIER, UH, AS YOU ELEVATE AND YOU CAN, CAN TAKE ADVANTAGE OF MORE SERVICES THAN, THAN A MUTUAL
SO I'D SAY OF THE ROUND TABLES, SHOULD MOST OF THEM MEMBERS.
YEAH, I THINK IN THE, IN THE ORIGINAL ROUND TABLES, THAT NICHE IS A PART OF, I THINK PRETTY MUCH ALL OF THEM.
HISPANIC, PROBABLY NONE OF THEM ARE NUMBERS.
SO, AND HAVE YOU SEEN, UM, LIKE HOW, HOW HAVE YOU SEEN THOSE NUMBERS INCREASE FROM ONE UP? HAVE YOU SEEN SCALE MM-HMM
HAVE YOU SEEN, HAVE YOU SEEN THEM GO UP OR IS IT ABSOLUTELY, ABSOLUTELY.
IT'S, IT'S, IT'S HOW IT MEASURES CAESAR'S, RIGHT.
AND SO YOU, HE HAS, AND I WON'T GET INTO HOW OUR STRUCTURE IS, BUT IT'S VERY INTENTIONAL AND VERY, VERY MEASUREMENT SPECIFIC.
I APPRECIATE ALL THAT YOU DO FOR THE CITY OF GARLAND.
DEPUTY MAYOR PRO TEM DUTTON, TEXT, CITY OF GARLAND, TEXAS.
UM, HOW OFTEN DOES THE CHAMBER WORK WITH OUR ECONOMIC DEVELOPMENT DEPARTMENT? UM, IN REGARDS TO RECRUITING NEW BUSINESSES? UH, WELL, DAILY WE WORKED WITH
UH, THE EXPERTISE THAT YOU NEED RECRUIT BECAUSE IT GETS INVOLVED WITH INFRASTRUCTURE AND THAT'S A HUNDRED PERCENT WHAT
[00:40:01]
TEXT WORK SESSION JULY 6TH, 2026.WHEN IT COMES DOWN TO THE NEEDS FOR WORKFORCE AND SCHOLARS OF THE OUR, UH, GISD, WE PLAY A ROLE IN THAT.
SO I THINK WHERE WE, WE WORK A LOT OUTSIDE THE RECRUITING SIDE OF IT IS ON THE BASIC DEEDS.
IF IT'S AN IN QUESTION, IF IT'S A UTILITY QUESTION, WE'VE HAD HOMELESS CONNECTIONS, HOMELESS QUESTIONS ABOUT, SO IN THAT REGARD, UH, KO'S DEPARTMENT WAS A TREMENDOUS RELATIONSHIP WITH EVERYBODY.
SO WE WORK WITH THEM, YOU UNDERSTAND THAT YAKO TAUGHT ME ECONOMIC DEVELOPMENT.
UH, SHE WAS MY FOURTH ECONOMIC DEVELOPMENT HIRE WHEN AFTER I GOT HERE.
SO AFTER I WENT THROUGH THREE GUYS, UH, AND YAKO WAS THE LAST PERSON STANDING, I SAID, YOU KNOW, COME IN AND SAVE THIS.
AND SO 15 YEARS, AIKO PROBABLY THE SCAR TISSUE WAS JUST STARTING
UM, AND THEN WHEN WE, WHEN WE IN 14 CITY TOOK BACK THE RECRUITING SIDE NATURALLY BECAUSE THAT'S WHERE THE INCENTIVES WERE, SHE WENT OVER TO THE CITY SIDE.
AND SO IT WAS A GREAT RELATIONSHIP.
UM, AND THEN ON YOUR SMALL BUSINESS DEVELOPMENT, UM, PEOPLE AT THE TABLE, SO I KNOW PERSONALLY IN MY DISTRICT, WE HAVE A VERY LARGE AMOUNT OF LITTLE MOM AND POPS SMALL BUSINESSES.
UM, AND THEN I, I SAW THAT ONE OF THE THINGS THAT YOU GUYS WORK ON IS LIKE THE FACADE IMPROVEMENTS.
UM, AND WITH OUR NEW STRATEGIC PLAN, THIS IS SOMETHING THAT IS VERY CRITICAL.
UM, 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, UM, THE MOST BENEFICIAL MOVING FORWARD FOR OUR STRATEGIC TEAM? WELL, AND, UH, THE CITY MANAGER AND I HAVE HAD CONVERSATIONS ABOUT THE ROLE GOING FORWARD.
I, I DON'T SEE US, YOU KNOW, THIS, THIS PROGRAM IS A LOT TO THE FOLKS THAT ARE ON THE GROUND, BUT IN TERMS OF INITIATIVE AROUND HOUSING AND THEN RELATED TO RETAIL AND THAT, UH, GETTING MORE EMPHASIS ON THAT, AS I WAS SAYING, WHEN MIKE CAME TO OUR BOARD MEETING, WE HAD PEOPLE LIKE NISHA AND OTHERS ARE ALREADY JUMPING UP AND SAYING, I, I WANT THIS FOR IT.
SO, UM, THE CYBER IMPROVEMENT PLAN HAS BEEN A CITY RUN PROGRAM AND IT'S GONE GO OFF AND ON.
AND SO IT'S TAKEN ON A WHOLE OTHER LAYER OF EMPHASIS WITH, WITH YOUR 10 YEAR PLAN.
SO YOU'LL SEE US INVOLVED WITH THAT.
UM, AND THEN MY LAST ONE, UM, WE, I THINK WE'RE ALL GRATEFUL FOR YOUR CANDIDATE VIDEOS.
UM, ONE THING THAT I WOULD LOVE TO SEE IS FOR YOU GUYS TO HOST A CANDIDATE FORUM, UM, ONE THAT IS RECORDED AND PUT OUT ON SOCIAL MEDIA, THAT'S SOMETHING THAT WE ARE GREATLY LACKING OVERALL.
UH, WE, WE HAVE TWO CURRENT, UM, CANDIDATE FORMS, HOWEVER, THEY'RE NOT WIDELY PUBLICIZED OR TEXT.
THEY'RE, THEY'RE NOT MARKETED, SO PEOPLE DON'T SHOW UP RIGHT THERE.
SO IT'S, 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, UM, I MEAN, I, WE HAVE, WE HAVE CANDIDATE FORUMS, BUT THEY'RE NOT, UM, ADVERTISED, RIGHT? SO PEOPLE DON'T KNOW TO SHOW UP TO THEM.
UM, THEY'RE NOT RECORDED, THEY'RE NOT, UM, 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 TEXT CARISSA DUTTON.
UM, FIRST I APPRECIATE, UM, GOLAND CHAMBER OF COMMERCE, YOUR, WHAT YOU HAVE DONE FOR THE PAST MANY YEARS.
I GRADUATE FROM LEADERSHIP WHEEL IN CLASS 45.
IT GIVE ME AN OPPORTUNITY TO MEET THE BUSINESS COMMUNITY.
AND IT'S VERY GREAT THAT WE CAN VISIT OUR BUSINESS IN, IN OUR DISTRICT, UM, AND MANY MORE.
MY QUESTION IS THAT EARLIER YOU MENTIONED WE HAVE ABOUT 5,000 BUSINESSES IN GARLAND, RIGHT? YES.
AND YOU HAVE ABOUT 430 BUSINESSES MEMBERS.
SO IT LOOK LIKE YOU STILL HAVE LIKE, UH, 91% THAT'S NOT OUT THERE FOR RETENTION.
UH, SO DO YOU HAVE ANY KIND OF STRATEGY? HOW DO WE, CAN JIMMY TRAN ON THE TABLE HANDS CLASSED? YES.
AND THEN STRATEGY IS NOT TO HAVE THAT MANY MEMBERS.
YOU KNOW, IF YOU'VE BEEN AROUND ME FOR A WHILE, YOU KNOW, YOU ON STORIES AND I CAME HERE FROM HOUSTON WHERE MY JOB WAS TO GET THAT CHAMBER TO 10,000 MEMBERS AND I HAD HUNDREDS OF VOLUNTEERS AT THE RECRUITMENT ON THE RETENTION SIDE, LOAN TO EXECUTIVES,
[00:45:01]
PEOPLE JUST GETTING PEOPLE IN WE'RE A LOT MORE INTENTIONAL.WE'RE, WE'RE ABOUT 400, WE'RE FOUR 30 RIGHT NOW.
WE'RE PROBABLY CAP IT AT AROUND FIVE.
THAT'S HOW MANY PEOPLE WE CAN SERVE.
AND, UH, THIS RELATIONSHIP ALLOWS US TO SERVE ANYBODY.
AND SO IT'S NOT, IT IS 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, 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 TWO OR THREE QUESTIONS IS HOW MANY MEMBERS DO YOU HAVE? THE WAY I DESCRIBE THAT IS MAN SPEAKS INTO MICROPHONE.
THE BUSINESS JOURNAL'S BOOK A LIST HAS A PAGE OF THE CHAMBERS 25 ON THAT LIST RANKED BY NUMBER OF MEMBERS.
WE DON'T SHOW UP ON THAT LIST.
WE HAVE LESS MEMBERS THAN THE 25TH COUNTRY CHAMBER.
IN TERMS OF RESOURCES, WE'RE LIKE FOUR OR FIVE.
SO THAT'S WHERE I REALLY MEASURE SUCCESSES IN TERMS OF WHAT RESOURCES CAN WE BRING TO BEAR AROUND WORKFORCE, AROUND SMALL BUSINESS AROUND.
I THINK IF THERE A LOT OUT THERE NOT NEEDS BUSINESS ATTENTION AND THEY ARE GOOD ON THEIR OWN, WHICH IS GREAT, BUT WE'RE, I WORRY ABOUT IF THERE ARE BUSINESS OUT THERE, THEY NEED OUR HELP, BUT WE ARE NOT REACHED THEM YET.
WELL, UH, WE HAVE A REALLY ROBUST COMMUNICATIONS GROUP.
UH, WE WORK A LOT WITH THE CITY.
UH, WE WORK A LOT WITH YOU ALL.
I THINK CAESAR HAS GONE AROUND AND SO IF YOU KNOW THOSE FOLKS, UH, GETTING PEOPLE TO ASK FOR HELP IS, IS, IS TOUGH FOR SOME FOLKS.
BUT, UH, CESAR, PART OF HIS JOB IS TO GO OUT THERE AND, AND, AND HE'S DOING IT ACROSS THE CITY.
SO IT'S MISSIONARY WORK ONE AT A TIME.
WELL, LAST QUESTION IS I CAN FOLLOWS DEPUTY MAP TEXT CHRISTINA ANO, DISTRICT FOUR CARISSA TON THAT, UM, ED MOORE LOOKS TO HIS RIGHT MOST CURRENTLY SINCE WE ARE IN THE GARDEN ON THE RISE, THE PLAN IS VERY IMPORTANT TO US.
AND IF THE GARDEN CHAMBER OF COMMERCE HAVE, CAN REVIEW THE PLAN AND SEES ANYTHING THAT CAN SUPPORT, THAT WOULD BE GREAT TO OUR, UM, STRATEGY.
SO MIKE AND I ON YEAH, YOU KNOW, WE HAD THAT CONVERSATION SO COUNT ON IT.
ANY OTHER QUESTIONS? ALRIGHT, I SEE NONE.
TEXT MICHAEL J BETS CITY MANAGER.
ALRIGHT, WE'LL MOVE ON TO OUR NEXT ITEM.
ITEM NUMBER EIGHT IS PRESENTATION OF THE FISCAL YEAR 20 26 27.
PROPOSED ANNUAL OPERATING BUDGET.
THANK YOU, UH, MAYOR AND COUNSEL.
I'M PLEASED TO PRESENT, UH, TONIGHT THE FISCAL YEAR 27 PROPOSED BUDGET.
UM, 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 AND THIS BUDGET IS AIMED AT FOUR THINGS THAT THE PLAN COMMITS US TO.
NUMBER ONE, STRENGTHENING FINANCIAL STEWARDSHIP.
NUMBER TWO, ACCELERATING ECONOMIC REDEVELOPMENT.
NUMBER THREE, PROTECTING CORE SERVICES.
AND NUMBER FOUR, ENSURING ACCOUNTABILITY.
UH, 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.
THIS 3% MERIT INCREASE AND TARGETED MARKET ADJUSTMENTS SO WE CAN KEEP AND RECRUIT THE TALENT THAT WE NEED TO BE SUCCESSFUL IN OUR STRATEGIC PLAN.
THIRD, WE CONNECT FUNDING TO THE STRATEGIC PLAN, REPRIORITIZING OUR BASELINE.
SO WE ACTUALLY SPEND MONEY THAT WE ACTUALLY SPEND ADVANCES OUR GOALS, THE STRATEGIC PLAN, RATHER THAN JUST CARRYING FORWARD THE PRIOR YEAR.
SPENDING A FEW HIGHLIGHTS BEFORE OUR CFO ALLISON STATEMENT TAKES YOU DETAILS UNDER THIS BUDGET, WE INVEST IN REDEVELOPMENT AND NEIGHBORHOOD REVITALIZATION.
DO THAT WE'VE ADDED CAPACITY AND CODE, NEIGHBORHOOD VITALITY, COMMUNITY DEVELOPMENT, PLUS A $5 MILLION
THREE PRIORITIES FOR THIS BUDGET PROTECT PUBLIC SAFETY WITH NINE ADDITIONAL FIREFIGHTERS, 10 ADDITIONAL POLICE OFFICERS, AND EIGHT ADDITIONAL EMERGENCY DISPATCHERS.
[00:50:01]
CORE SERVICES THAT RESIDENTS COUNT ON 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 67.99 CENTS.
THAT IS A PENNY BELOW LAST YEAR WITH THE NOVEMBER ELECTION PROPOSING TO SHIFT 3 CENTS FROM DEBT SERVICE TO OPERATIONS.
UH, I WANNA THANK SENIOR LEADERSHIP, UH, HERE AT THE CITY AND ESPECIALLY OUR BUDGET TEAM AND THIS COUNCIL, UH, FOR THE GUIDANCE THAT SHAPED THIS BUDGET.
AND NOW I'M HAPPY TO TURN IT OVER TO MS. STEADMAN TO WALK US THROUGH IT.
JUST FOR THE COUNCIL AS MIKE I'LL, HE UH, STARTED BEFORE WE GOT IN HERE PASSING OUT THE BOOKS.
UM, MIKE ADDRESSED HIS THREE PRIORITIES FOR THE BUDGET, TEXT BUDGET SCENARIOS 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 BUDGET TONIGHT AND THEN WE'LL BE BACK, UM, AS WE'LL GO OVER THE CALENDAR ON JULY 25TH FOR THE MORE IN DEPTH DISCUSSION OF THIS BUDGET.
SO FIRST, AS AS MIKE POINTED OUT, THIS BUDGET TAKES 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 ABOUT 2 MILLION IN NEW, UH, 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 AND 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 GROWTHS CRITICAL TO SUSTAINING OUR CURRENT SERVICE LEVELS AND WITHOUT THAT SUFFICIENT REVENUE GROWTH, UH, THE COMBINATION OF REBA TAX RATE REBALANCING AND REDEVELOPMENT, UM, IS CRITICAL FOR US.
OTHERWISE, WE WILL HAVE CHALLENGING TRADE-OFFS AND, UH, PRIORITIES IN THE FUTURE.
SO WITH THAT, UH, GO OVER THE REBALANCING OF THE TAX RATE, UH, FOR NOVEMBER OF 2026.
WE WILL NOT RECEIVE OUR CERTIFIED VALUES UNTIL JULY 24TH.
SO THIS PROPOSED BUDGET'S BASED ON ESTIMATES WHICH FAHAD WILL GO OVER.
UM, WE'RE LOOKING AT DE DECREASING THE OVERALL TAX RATE BY ABOUT 4 CENTS AND SHIFT 1 CENT AND REBALANCING THE TAX RATE 3 CENTS, UM, WITHIN FROM THE DEBT SERVICE TO THE O AND M SIDE OF THE TAX RATE.
SO THIS WILL SHORE UP FUNDING FOR CITY SERVICES WILL ALSO PROVIDE TAX RATE RELIEF.
AND WITH THAT I'LL HAND IT OVER TO OUR BUDGET MANAGER FAHA TO TALK YOU THROUGH THE DETAILS.
MAN, WOMAN, A TABLE WITH LAPTOPS.
SO THE BUDGET DOCUMENT THAT Y'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 GONNA GO THROUGH HERE TODAY ALSO ASSUME THE APPROVAL OF THE TAX RATE, UH, CONSOLIDATED.
TOTAL COMBINED BUDGET IS 1.0 BILLION.
THIS IS A DECREASE OF 40.7 MILLION.
UH, 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 COM DEPLETION OF ARPA FUNDING, WHICH IS EXPECTED TO BE FULLY UH, EXPENDED BY THE END OF THIS YEAR.
FOR ON THE GENERAL FUND SIDE, THE TOTAL BUDGET IS 27.1 6, 2271 0.6 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, A PROPERTY TAX MIX OF ABOUT 34% SALES TAX, 17 LANDFILL AND DISPOSAL ABOUT 10%.
AND ALL OTHER, UH, REVENUE SOURCES SUCH AS EMS FEES, PERMITS AND MINABLE COURT AND FINES ARE ABOUT 29%.
[00:55:01]
AND AGAIN, THIS IS USING THE PRELIMINARY, UH, TAX RATE APPROVAL, WHICH IS EXPECTED TO GENERATE ABOUT 10.3 MILLION IN ADDITIONAL PROPERTY TAX REVENUE BUDGET.LOOKING AT OUR PROPERTY TAX BASE, UH, BASED ON PRELIMINARY EARLY ESTIMATES FROM THE, UH, FROM DCAD, WE'RE LOOKING AT ABOUT 30.2 BILLION, WHICH IS A $1.9 BILLION INCREASE FROM THE PRIOR YEAR.
AND WE WILL HAVE, UH, CERTIFIED VALUES ON JULY 24TH AND WE'LL BE COMING BACK TO COUNCIL WITH THAT INFORMATION.
LOOKING AT OUR PROPERTY TAX-BASED GROWTH FOR NEW CONSTRUCTION, WE'RE LOOKING ABOUT 470 MILLION, UH, THIS YEAR, WHICH IS LOWER THAN PRIOR YEARS, BUT WE'VE HAD HISTORIC HIGHS THE LAST SEVERAL YEARS.
AND BASED ON, UH, LEADING INDICATORS FROM OUR BUILDING PERMIT INFORMATION, WE EXPECT THESE TO CONTINUE TO DROP.
TWO CHARTS, SHOW PROPERTY TAX GROWTH PEAK, THEN DECLINING.
LOOKING AT OUR, UH, TAX BASE GROSS PERCENT CHANGE, WE'RE AT EXPERIENCE ABOUT A 6.53% INCREASE.
BUT AGAIN, THIS IS LIMITED BY SB TWOS, 3.5% REVENUE CAP GARLAND SALES TAX REVENUE CHART SHOWS INCREASE.
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, UH, 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 G PIN, O-R-N-I-R-O-I, WHICH IS 27.9 AND IS BASED ON A FLAT 8% OF, UH, RETAIL AVERAGE SALES AND AS A 3.5% INCREASE OVER THE PRIOR YEAR, LANDFILL CHART SHOWS UPWARD TREND.
LOOKING AT OUR LANDFILL DISPOSAL REVENUE, WE'RE ESTIMATING ABOUT 25.8.
THIS DOES REFLECT PROPOSED RATE INCREASES, UH, 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, UH, STREET AND ALLEY SEARCH CHARGE 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 UH, FEES ARE NO LONGER PASSING THROUGH THE GENERAL FUND MAJOR COST DRIVERS.
SLIDE 19, LOOKING AT SOME OF OUR MAJOR COST DRIVERS FOR THE FI 27 PROPOSED BUDGET, UH, UH, GENERAL, UH, SCHEDULE MERIT INCREASES AS WELL AS UH, CIVIL SERVICE AND SKILL-BASED PAY ARE ESTIMATED BE ABOUT 4.6 MILLION.
MARKET ADJUSTMENTS FOR HIGH TURNOVER AND FREQUENTLY VACANT POSITIONS.
ABOUT 1.2 MILLION, UH, INCREASES FOR THE CIVIL SERVICE RETIREE.
UH, RETIREMENT STABILITY COMP, UH, CONTRIBUTION HAS GONE UP TO 3.0%, WHICH IS THE FINAL, UH, RATE INCREASE BASED ON PREVIOUS COUNCIL DIRECTION AS WELL AS INCREASES TO THE GROUP HEALTH INSURANCE FUND OF ABOUT 2 MILLION.
UH, ON THE OPERATING SIDE, WE'RE LOOKING AT RISING COSTS, UH, FOR BASELINE OPERATIONS AS WELL AS INCREASES TO FLEET RATES AND ASSOCIATED, UH, COST OF INTERNAL SERVICES SUCH AS IT AND VEHICLE REPLACEMENT AND FIELD TEXT, YES, BUDGET.
A QUICK HIGHLIGHT OF SOME OF THE YES.
BUDGET ITEMS. THESE ARE ITEMS THAT WOULD BE ADDED INTO THE BUDGET AS THE TAX RATE, IF THE TAX RATE GETS APPROVED.
THAT'S, UH, ADDITIONAL FIREFIGHTERS AND ADDITIONAL OVERTIME FOR FIREFIGHTERS.
UH, EMERGENCY SERVICES DISPATCHERS, 10 ADDITIONAL POLICE OFFICERS, UH, ANIMAL CARE TECHNICIANS, CODE STAFF, UH, MUNICIPAL COURT, UH, SERVICES, PARK SECURITY, AND AS WELL AS AT PARKS FIELD SUPERVISOR.
AND THESE ARE KIND OF GROUPED AS ENHANCED SERVICE LEVELS, UH, WHICH WOULD BE ABOUT 4.9 MILLION.
GENERAL FUND PROPOSED BUDGET TO MAINTAIN THE LEVEL OF SERVICES THAT THE GARLAND RESIDENTS HAVE COME TO EXPECT.
UH, THIS IS ABOUT 2.5 MILLION.
THAT INCLUDES, UH, 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, UH, THE TOTAL OF THESE, YES, 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, UH, NO CHANGE FOR GPNL.
ELECTRIC RATES WATER ABOUT A TWO POINT, UH, $2 AND 47 CENTS INCREASE WASTEWATER 94 CENTS.
UH, SANITATION $2 AND STORMWATER A 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 AND 13 CENTS INCREASE FOR THE AVERAGE RESIDENT.
UH, MOVING ONTO THE CALENDAR, UH, ON JULY 25TH, WE WILL HAVE DEPARTMENT PRESENTATIONS DISCUSSING THEIR NEW FUNDING REQUESTS AS WELL AS FEE CHANGES AND THAT'LL BE AN OPPORTUNITY FOR COUNCIL DISCUSSION AS WELL.
UH, JULY 28TH, WE'LL BE SUBMITTING THE CERTIFIED TAX ROLL AND BRINGING BACK FORTH, UH,
[01:00:01]
INFORMATION TO COUNCIL REGARDING POTENTIAL CHANGES TO THE BUDGET BASED ON CERTIFIED PROPERTY VALUES.AUGUST 3RD, UH, WILL BE FURTHER COUNCIL DISCUSSION.
AUGUST 4TH, WE WILL BE A PUBLIC HEARING, UH, AUGUST 11TH PUBLIC HEARING COUNCIL DISCUSSION.
AND THEN AUGUST 17TH WE'LL BE, WE'LL BE SEEKING ADOPTION OF THE PROPOSED BUDGET AS WELL AS CALLING THE TAX RATE ELECTION SLIDESHOW BUDGET PROCESS CALENDAR.
AND WITH THAT, WE'LL TAKE ANY QUESTIONS.
COUNCIL MEMBER MOORE? YEAH, I'D JUST LIKE TO MAKE SURE THAT, UH, I DIDN'T SEE IT IN THE BOOKLET.
WILL YOU BE MAKING THIS PART OF A PRESENTATION FOR US? THIS PRESENTATION? YES.
ED MOORE JESTERS COUNSEL, ANY OTHER QUESTIONS? TWO MEN AT THE TABLE.
THE MAYOR SHUFFLES PAPERS MAYOR PRO TEMA, I'D LIKE TO THANK YOU BOTH FOR THIS, UM, THIS FINE DOCUMENT.
THIS IS, UH, A LOT OF WORK HERE.
THIS IS, UH, QUITE SOMETHING TO, UH, PUT TOGETHER.
UM, I DID HAVE ONE RECOMMENDATION, WHICH WAS FOR THE MOST FOR OUR CITY MANAGER.
IT WAS ABOUT A, UM, 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 SO THAT WE CAN LOOK AT THE DAILY ATTENDANCE OF THOSE SO THAT WE CAN MAKE DECISIONS.
I'VE ASKED THAT INFORMATION ALREADY.
TWO MEN AT A DARK WOODEN TABLE.
ANYTHING ELSE? ALRIGHT, COUNCIL MEMBER MOORE.
EXCUSE ME, MR. MAYOR, UH, COULD YOU GO BACK TO THE SLIDE WHERE YOU HAVE THE ENHANCED SERVICE LEVELS, RIGHT? UH, JIMMY TRAN LOOKS DOWN FIGHTERS AND POLICE OFFICERS.
WHILE WE UP THE COMPLIMENT, WHILE WE STILL UNDERSTAFFED, IS THERE SOMETHING THAT WE NEED TO DO IN THIS AREA TO ASSURE OH, I LIKE THAT SMILE.
AND I DON'T WANNA SPOIL THE FANTASTIC PRESENTATIONS THE CHIEF WILL BOTH GIVE ON JULY 25, FIFTH, EITHER.
UM, BUT MY UNDERSTANDING IS THIS WOULD STILL PUT US BELOW SOME OF THE COMPARABLES IN TERMS OF OUR STAFFING RATIOS TO OTHER LIKE CITIES.
UM, BUT THESE ARE TO ENHANCE THE NUMBER OF STAFFS TO SOME OF OUR MINIMUM STAFFING.
AND AGAIN, THIS, THAT'S THE LITTLE BIT, I KNOW TWO STAFF SIT AT A TABLE WITH DEVICES.
I'LL INVITE THE CITY MANAGER AND, UM, 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, UH, CER, CERTAINLY WITH RESPECT TO FIREFIGHTERS UNDER THE MASTER PLAN THAT THEY HAD COME FORWARD WITH, UH, THAT THE COUNCIL SAW PREVIOUSLY, UH, THAT PLAN RECOMMENDED, UH, UH, SIGNIFICANT INCREASE IN THE STAFFING THAT THEY, THEY HAVE, UH, THIS STARTS TO MOVE TOWARDS THAT.
IT DOESN'T SOLVE IT IN ONE YEAR.
WE COULDN'T AFFORD TO SOLVE IT IN ONE YEAR, BUT IT STARTS TO MOVE TOWARDS THAT.
UH, THAT'S THE NINE ADDITIONAL FIREFIGHTERS.
THE 10 ADDITIONAL POLICE OFFICERS ARE TO ATTEMPT TO BRING US CLOSER AS MS. UH, STEADMAN SAID, UH, BRING US CLOSER TO THE PER CAPITA AVERAGE NUMBER OF POLICE OFFICERS.
THE METROPLEX THAT YOU WOULD HAVE IN A CITY OUR SIZE, UH, PROBABLY WE'RE STILL LOWER EVEN WITH THE 10 ADDITIONAL POLICE OFFICERS, BUT THAT'S WHY WE'RE ADDING THOSE POLICE OFFICERS, UH, UNDER THE YES 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, UH, TAX BASE THAN THOSE, UH, CITIES IN THE METROPLEX.
THIS IS AN ATTEMPT TO, UH, ENHANCE THOSE NUMBERS AND BRING US CLOSER TO THE PER CAPITA.
AND THE CHIEF, I'M SURE WILL DESCRIBE BOTH OF THOSE, UH, SITUATIONS ON THE SATURDAY WORK SESSION.
AND SINCE YOU HAVE THE MIC, UH, COULD YOU JUST GO TO TALK A LITTLE BIT ABOUT, JUST VERY BRIEFLY, WHAT HAPPENS WITH THIS BUDGET OF, WITH THESE PROPOSALS AS IF IN FACT, UM, IN NOVEMBER, THIS TAX RALLY THAT WE'RE TALKING ABOUT IS NOT ACCOMPLISHED,
ALL OF THESE, UH, ADDITIONAL SERVICES, ENHANCED SERVICE LEVELS, UH, WOULD NOT BE ADDED IN THE EVENT
[01:05:01]
THAT, UH, THAT THE VOTERS PROJECTED THE, UH, PROPOSAL TO SWAP OUR DEBT SERVICE AND OPERATION RATE.UH, 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'S AWARE, YOU KNOW, WE'VE GREATLY ENHANCED THE SIZE OF OUR, UH, ANIMAL SERVICES CAPABILITY UNDER OUR NEW ANIMAL SHELTER.
IF YOU 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, UH, VERY FEW ADDITIONAL PERSONNEL.
THIS IS TO ADD THE PERSONNEL TO BE ABLE TO ACTUALLY CARE FOR, UH, THE NUMBER OF ANIMALS THAT WE NOW ARE ABLE TO HOUSE.
UH, IT, IT ALSO, UH, REFLECTS, UH, CODE COMPLIANCE ADMINISTRATOR AND, AND, UH, PARKS FIELD SUPERVISORS PROVIDE ENHANCED SERVICES BOTH FOR CODE COMPLIANCE AND FOR, UH, PARKS.
AND THOSE, NONE OF THOSE SERVICES, UH, WOULD BE ADDED IF WE ARE UNABLE TO.
THAT SPEAKS, CONVINCE THE VOTERS THAT THIS IS THE APPROPRIATE, UH, THING TO DO TO SWAP THE DEBT SERVICE AND OPERATING SERVICE BUDGETS.
MICHAEL BETS LOOKS AT MAYOR HEDRICK.
THOUGHT, THANK YOU VERY MUCH FOR THIS BUDGET PRESENTATION.
HOW DO YOU HAVE THE YES AND THE NO BUDGETS PRESENTED IN THIS BINDER? SO, UH, 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 REELECTION.
IF THE TAX REELECTION 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? FISCAL IMPACT.
AND THAT, 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 AND M UH, SPENDING THAT WE HAVE THAT WOULD PROMPT US TO RECEIVE THE APPROVAL OF THE VOTERS TO, UH, PASS THAT.
EVEN THOUGH AS AS POINTED OUT, WE'LL BE A, ABOUT A PENNY LOWER THAN LAST YEAR.
SO WE'LL ACTUALLY BE GOING DOWN IN RESPECT TO THE TAX RATE.
UH, WE STILL, BECAUSE 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, 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.
UH, AND THAT'S JUST A FUNCTION OF THE WAY THAT THEY DESIGN STATE LAW.
UM, AGAIN, GREAT WORK ON THIS.
YOU ALWAYS DO A FANTASTIC JOB ON IT.
UM, IT'S ALWAYS VERY EASY TO FIND THINGS.
ONE OF THE QUESTIONS I HAD BEFORE WE, UM, JUMP OUT OF THE BUDGET DISCUSSION IS THE ENHANCED PARK SECURITY.
WILL THAT BE ONE OF THE PRESENTATIONS GIVEN? YES, IT WILL.
WE'LL HAVE THE PARKS DEPARTMENT GO OVER ALL OF THEIR REQUESTS.
WELL I WILL LET THEM DO THAT AND NOT GO INTO IT TODAY.
SO I'M LOOKING ON PAGE 93 OF CULTURAL ARTS AND I SEE AN, AN INCREASED NUMBER FOR GRANDVILLE ARTS CENTER, WHICH IS GONNA BE CLOSED ALL OF NEXT YEAR.
SO I'M WONDERING WHAT THAT, UH, WHAT THAT'S FOR.
AND IF I SHOULD WAIT FOR THE CULTURAL ARTS PRESENTATION, TELL ME THAT THAT IS THE TRANSFER OF A POSITION THAT WAS FUNDED IN THE HOTEL MOTEL TAX FUND.
UH, TO MORE CLOSELY ALIGNED WITH THE REQUIREMENTS OF THE HOTEL MOTEL TAX FUND REQUIREMENTS.
IT IS A CULTURAL CULTURAL ARTS SUPERVISOR, SO IT'S NOT A NEW POSITION, IT'S A TRANSFER OF, OF A POSITION INTO THE GENERAL FUND.
I'M, I'M TALKING ABOUT A BUDGET SUMMARY BY OPERATIONAL AREA, GRANDVILLE ARTS CENTER.
NOTHING TO DO WITH PERSONNEL IS THAT IT GOES FROM 979,000 TO A MILLION OH SIX.
UH, WE'RE NOT IN AMY ROSENTHAL A MILLION DOLLARS ARE WE? TWO PEOPLE, A MAN AND A WOMAN ARE SEATED AT A WOODEN TABLE WITH LAPTOPS AND MICROPHONES.
THEY'RE LOOKING FORWARD AND SMILING THAT.
SO CULTURAL ARTS WHEN IS NOT CURRENTLY SCHEDULED FOR OUR JULY 25TH WORK SESSION.
UM, BUT WE COULD WORK WITH AMY IF THERE ARE SOME SPECIFIC QUESTIONS TO BE ASKED.
UM, THAT DEPARTMENT BUDGET SUMMARY PAGE IS AN OUTLINE OF THE TOTAL BUDGET FOR THAT OVERALL DEPARTMENT, WHICH IS MORE THAN JUST THE GRANDVILLE ARTS CENTER.
UM, THE NEXT YEAR'S BUDGET DOES CONTEMPLATE SOME AMOUNT OF, UH, CAPACITY GIVEN TO, UH, CATALYZE THE ART INCUBATOR AS WELL AS SOME OF THE OTHER CONTINUING ACTIVITIES HER DEPARTMENT WILL DO WHILE THE GRANVILLE ARTS CENTER IS CLOSED.
[01:10:01]
UM, BUT LET US TAKE THIS AS A, AS A ACTION ITEM TO GET YOU A MORE WRITTEN DETAIL, UM, OF EXACTLY WHAT MADE UP THAT CHANGE.IT IS THE POSITION THAT FAHA MENTIONED, BUT WE CAN ITEMIZE THAT OUT FOR YOU.
AND IT CAN BE OUR, OUR FIRST, UH, FOLLOW UP COUNCIL QUESTION FOR THE BUDGET PROCESS AND 'CAUSE YOU HAVE SEPARATE LINES FOR THE ARTS CENTER, PLAZA THEATER, BANQUET HALL, YES.
SO THOSE OTHER THREE ARE GOING TO CONTINUE AS THEY ALWAYS HAVE.
BUT THE ARTS CENTER, UM, AND THAT MAY BE THAT WE'RE MOVING THAT TO 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.
UM, 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 GREENVILLE'S CLOSED, HOW THEY'LL BE DOING THOSE EVENT ACTIVATIONS, GETTING PERFORMANCES SCHEDULED, WHAT FACILITIES THEY PLAN TO UTILIZE FOR THAT.
JUST TO FOLLOW UP ON THAT, THE, I THINK THAT THE, THE POINT, UH, IS, AND, 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 GRANDVILLE ARTS CENTER IS CLOSED, ALL THOSE PERFORMANCES ARE GONNA 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 THE GRANDVILLE.
I THINK THAT'S PROBABLY A MORE PRECISE ANSWER TO THE QUESTION THAT YOU HAD.
THAT, THAT CERTAINLY MAKES PERFECT SENSE.
IF THIS IS REALLY PERSONNEL RELATED, PERSONNEL ARE STILL GONNA BE DEPLOYED, WHERE WE'RE NOT GONNA STOP DOING THE SYMPHONY ORCHESTRA AND THE SUMMER MUSICALS AND ALL OF THAT, JUST GONNA BE SOMEWHERE ELSE.
AND, AND, AND THERE CERTAINLY WOULD BE, THERE'S GONNA BE SOME EXPENSES ON MOVING STUFF AROUND AND THINGS OF THAT NATURE.
SO, BUT THE, THE CULTURAL ARTS, UH, DEPARTMENTS, UH, SERVICES THAT THEY PROVIDE THAT ALLOW THE COMMUNITY TO ENJOY CULTURAL ARTS WILL CONTINUE EVEN DURING THE YEAR THAT THE GRANDVILLE IS CLOSED FOR RECONSTRUCTION.
'CAUSE THOSE PERFORMANCES WILL GO ON IN OTHER PLACES AROUND THE CITY.
YOUR TEAM AND THE WHOLE TEAM THAT WORK HARD TO GET AS A BEAUTIFUL THIS BOOK.
SO WE'LL GO OVER AND, AND WE'LL HAVE A QUESTION IN THE NEXT SESSION.
UH, I JUST WANNA CLARIFY THAT, UM, THE FIRST PART IS FOR THE TAX RATE ELECTION, THAT WHAT I HEAR IS NOT INCREASE THE TAX, BUT I REDUCE AT LEAST 1 CENTS, RIGHT? AND WE MOVE, UM, THE PERCENT FROM THE DEAF SERVICES TO JIMMY TRAN GESTURES WITH HIS RIGHT HAND.
UM, THE O AND M, THE, UH, THE BUDGETS, THE OPERATING BUDGETS.
UH, SO IF THE, THE TAX RATE ELECTION DOESN'T PASS, A VOTER DOESN'T APPROVE, I THINK WE ANTICIPATE THAT WE CAN MAYBE CLOSE CERTAIN HOURS.
SO LIBRARY OR PARK, I THINK WE JUST TRY TO EMPHASIZE THE IMPORTANCE OF THIS TAX RATE ELECTION.
UH, SO WE JUST SHARE WITH THE, THE RESIDENTS AND UNDERSTANDS HOW IMPORTANT IS, UH, IS THAT WHAT I UNDERSTAND CORRECTLY? YES, SIR.
AND I'LL INVITE OUR CITY MANAGER TO TALK ON THIS A LITTLE BIT FURTHER.
'CAUSE WE WILL BE THROUGHOUT THIS BUDGET PROCESS AND THEN I'LL HAND OVER TO HIM.
UM, WE'LL BE HIGHLIGHTING THAT 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 TO NO BUDGET, HAVE THE DEPARTMENT SPEAK TO THAT.
UM, BUT THERE ARE OPERATIONAL CHANGES THAT MAY BE NE NECESSITATED SHORT TERM VERSUS LONG TERM THAT WILL NOT BE REFLECTIVE IN THIS DOCUMENT.
UM, 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, UM, 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'T ADD THE POLICE AND FIRE AND EMERGENCY DISPATCHERS WE NEED, WE CAN'T, UH, 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, UM, 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 LESS.
BUT YES, BUDGET ALLOWS US TO HAVE ROOM IN THE OPERATING PART OF THE BUDGET.
SO BECAUSE WE'RE IN A LESS, UH, CAPITAL INTENSIVE PHASE, IF YOU THINK ABOUT DURING THE HEDRICKS, ITS ATTENTIVE, THE, UH, MON PROGRAMS, WE WERE IN A VERY CAPITAL INTENSIVE PHASE.
WE'RE BUILDING A LOT OF STUFF.
NOW THAT WE'RE DONE BUILDING STUFF, WE NEED TO OPERATE IT.
[01:15:01]
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.
UM, IF THE VOTERS, THE WOMAN LOOKS DOWN AT HER DESK, DON'T SAY YES, UH, 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 ONETIME MONEY FOR THAT PURPOSE SO THAT THEY ULTIMATELY THE RESIDENTS CAN HAVE A LOWER RESIDENTIAL TAX BURDEN AS OPPOSED TO USING ONETIME MONEY TO KEEP THINGS OPEN UNTIL YOU RUN OUTTA ONETIME MONEY AND THEN SHUT THEM DOWN, IS OUR PHILOSOPHY.
I THINK IS IS IMPORTANT FOR THE, OUR RESIDENTS, THE HOME TO UNDERSTAND THIS.
AND TOGETHER WE HAVE TO WORK TOGETHER FOR THIS, UH, IMPORTANT TAX RATE ELECTION.
MAYOR, ANY OTHER QUESTIONS? THE BAN READS WORK SESSION.
ALRIGHT, COUNSEL, THIS IS THE BEGINNING OF A MONTH AND A HALF PROCESS THAT'LL 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 YOU 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.
ITEM NUMBER NINE, THAT PROPOSED DEVELOPMENT AGREEMENT FOR 5 0 5 CENTERVILLE MF LLC WILL BE POSTPONED TO A LATER DATE.
SO WE'LL MOVE ON TO ITEM NUMBER 10, DATA CENTER WATER AND ELECTRICITY USAGE REPORT AND DISCUSSION OF ECONOMIC IMPACT AND COMMUNITY BENEFITS.
PLEASE, YES, AND THEN I'LL CALL THE SPEAKERS NEXT.
YES, THE SCENE SHIFTS TO SHOW THREE INDIVIDUALS AT A LIGHTER WOODEN TABLE.
THE MAN IN THE MIDDLE ADJUSTS HIS POSITION.
THE MAN ON THE LEFT PICKS UP PAPERS, THE WOMAN ON THE RIGHT PLACES, HER FINGERS NEAR HER MOUTH.
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.
UM, I ALSO HAVE HERE AT THE TABLE MATT WATSON, ASSISTANT CITY MANAGER AND DARRYL KLEIN, GENERAL MANAGER OF GPNL.
SO WE STARTED THIS A LITTLE BIT OF HISTORY.
WE STARTED BACK IN, UH, MAY, THE STARTED WITH IN MAY, UH, THE SECOND MEETING IN MAY.
UH, 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 ACCOUNT WATER USERS.
AND THERE WAS A SECOND BY, UH, THEN MAYOR PRO TEM LUCK.
AND OVER THE COURSE OF THE LAST MONTH OR SO, IT KIND OF EVOLVED INTO NOT JUST WATER CENTER, UH, NOT JUST WATER USE, BUT IT ALSO WAS EXPANDED TO INCLUDE ELECTRO CUES AS WELL AS THE ECONOMIC IMPACT.
ONE THING THAT YOU'LL NOTICE ABOUT THE LIST THAT'S, UM, CURRENTLY ON THE SCREEN, IN ORDER TO KEEP THE FOCUS ON DATA CENTERS, WE TOOK OUT ACTUAL NAMES OF THE COMMERCIAL USERS AND WE REPLACED 'EM WITH MORE GENERIC TITLES.
YOU'LL SEE COMMERCIAL USER, WHOLESALE CUSTOMER, UH, APARTMENT USERS, ET CETERA.
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, UM, WHICH IS OUR HIGHEST WATER USER IN THE CITY OF GARLAND, IT'S ESTIMATED AT AROUND 280 MILLION GALLONS ON AN ANNUAL BASIS.
THAT SIGNIFICANTLY DROPS DOWN IN THE SECOND POSITION, WHICH IS FAR WILL GOLF.
UM, 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, UM, GOLF PARK.
ONE THING TO NOTE IN THIS LIST, THESE ARE THE TOP 10 USERS YOU'LL SEE AT, UH, POSITION SEVEN AS WELL AS 10 THAT THOSE ARE APARTMENT USERS.
[01:20:01]
AND YOU'LL NOTICE THAT THOSE NUMBERS SIGNIFICANTLY DROP BETWEEN ONE AND 10 FROM 280 MILLION DOWN TO ABOUT 38 MILLION ON AN ANNUAL BASIS.AND THEN, UM, OUTSIDE OF THAT, FOR OUR FIRST DATA CENTER AT 1 29, THAT IS THE ACTUAL RANKING OF THAT DATA CENTER AT ABOUT 7 MILLION GALLONS PER YEAR.
AND THEN, UM, DATA CENTER D AT RANKING 1 66 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 CO HAS NOT BEEN ISSUED.
SO WE DON'T NECESSARILY HAVE ANY DATA ON THAT PARTICULAR CENTER AT THIS TIME.
DATA CENTER WATER USE FINDINGS.
SO WHEN WE STARTED LOOKING AT THIS, UM, 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 A 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, UM, AND I TRIED TO FIGURE OUT A WAY TO BRING THIS, UM, TO SOMETHING THAT IS NOT TOO TECHNICAL, BUT BASICALLY A CLOSED LOOP SYSTEM IS INTENDED TO FUNCTION SO THAT AT COMMISSIONING OR WHEN IT STARTED UP, THERE'S A COOLING FLUID THAT'S INJECTED INTO THIS SYSTEM.
UNLESS THAT SYSTEM IS, UM, UNLESS THERE'S DAMAGE TO IT OR IT NEEDS TO BE MAINTAINED, THERE IS 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 THAT 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, UM, MAINTAIN THAT SYSTEM AND A PORTION OF IT MAY NEED TO BE DRAINED.
AND EVEN AT THAT TIME, UH, TYPICALLY IF YOU NEED TO DRAIN IT AND START ALL OVER AGAIN, I BELIEVE THE AVERAGE IS ABOUT 300,000 GALLONS, UM, TO GO FROM ZERO TO BACK TO, YOU KNOW, FULL CAPACITY.
AND THEN IF YOU LOOK AT OUR ANNUAL WATER USAGE FOR DATA CENTERS, A AND D, THEY REPRESENT REALLY JUST A SMALL FRACTION, ABOUT 2%, ONE AND A HALF TO 2% OF OUR HIGHEST WATER USERS WITHIN THE CITY OF GARLAND.
AND WITH THAT, I THINK I'LL TURN IT OVER TO THE NEXT PERSON.
MAYOR COUNCIL DARRYL KLEIN, GARLAND POWER AND LIGHT.
UM, I'M GLAD TO SEE THAT JED'S IN HERE BECAUSE JED WILL APPRECIATE THIS
UH, SO WHENEVER INTERNAL AUDIT DOES A REPORT, UH, INVOLVING GARNER POWER AND LIGHT, I ALWAYS ASK JED FOR PERSPECTIVE.
UM, SO I'M GONNA TRY TO GIVE A LITTLE PERSPECTIVE.
UH, AND THE REASON WHY, LET'S SAY YOU HAD TWO INCIDENCES IN YOUR INTERNAL LAW REPORT.
I'D GO, IS THAT TWO OUTTA 10 OR IS THAT TWO OUTTA 10,000 BECAUSE OF TWO OUTTA 10,000? WE PROBABLY HAD A PRETTY GOOD REPORT.
UH, SO THAT'S WHAT I'M GONNA TRY 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 A WE IN GPNL HAD? THAT'S 506 MEGAWATTS.
WE GO TO ERCOT FOR 2025 AND WE LOOK AT THEIR PEAK DEMAND, THEIR PEAK 15 MINUTE, UH, USE.
THAT'S 0.6% OF THE ERCOT DEMAND IS WHAT GARLAND POWER AND LIGHT MADE UP OF THE OVERALL ERCOT DEMAND LESS THAN 1%.
UM, OVER TIME, GARLAND POWER AND LIGHT SYSTEM RELATIVE TO ERCOT HAS BEEN DIMINISHING.
AND IF YOU THINK ABOUT IT, THE CITY OF GARLAND IS EFFECTIVELY BUILT OUT.
AND SO WE'VE HAD SMALL INCREMENTAL GROWTH, WHEREAS THE REST OF THE STATE LARGE AMOUNT OF GROWTH.
AND SO OUR POSITION, RELATIVE POSITION HAS CONTINUED TO DECLINE OVER TIME.
UH, 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
[01:25:01]
ERCOT SYSTEM WOULD HAVE OVER 367,000 MEGAWATTS OF DEMAND.GIVE YOU AN IDEA THAT'S ABOUT A FOURFOLD INCREASE OVER THE CURRENT DEMAND IN THE NEXT SIX YEARS.
UH, IF YOU'VE BEEN READING ANY AR RECENT ARTICLES, UH, RE UH, AROUND, UM, ERCOT FORECASTED DEMAND, YOU MAY BE HEARING SOME THINGS THAT ARE COMING OUT, SOME OF THE COMMITTEES THAT NOW THIS NUMBER IS WELL OVER 400,000 MEGAWATTS BY 2032, I'D SAY FIVEFOLD 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, UH, UH, INDICATOR HERE THAT ERCOT USES.
THAT'S DATA CENTERS THAT ARE AT LEAST 75 MEGAWATTS OF DEMAND OR GREATER.
SO WHEN WE LOOK AT WHAT THE LOW GROWTH IS, IS ANTICIPATED, AGAIN BACK IN APRIL OF, OF THIS YEAR, UH, BY THE TIME YOU GET TO 2032, THIS FORECAST IS SHOWING THAT THE DATA CENTERS WOULD BE 228,000 MEGAWATTS.
SO ROUGHLY TWO THIRDS OF THE OVERALL DEMAND WOULD BE ASSOCIATED WITH LARGE LOAD DATA CENTERS.
LET ME JUST GO AHEAD AND SAY THAT THO 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, 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, UH, A COMBUSTION TURBINE.
SO IF YOU'RE GONNA PUT IN NATURAL GAS PLANTS AND 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 UTILITY 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, UH, BY THE VARIOUS UTILITIES.
SO ERCOT IS GOING THROUGH A PROCESS RIGHT NOW WHEREBY IF YOU WERE A DATA CENTER, A LARGE LOAD, YOU'RE GOING TO HAVE TO SAY, ARE YOU LOOKING AT, 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 AND SAY, OKAY, WHAT'S A LITTLE MORE REALISTIC ASSUMPTION? AND, AND WE CAN DEBATE ON WHAT REALISTIC IS.
UM, THEY REDUCED THEIR FORECAST BY A THIRD.
THEY HAVEN'T REDUCED THE CURRENT FORECAST, UM, AS FAR AS WHAT WAS RELEASED IN 2026 BECAUSE WHAT THEY'RE WAITING ON IS THIS PROCESS THAT'S BEING DEVELOPED THAT'S GONNA REQUIRE MORE FROM THE DEVELOPERS.
THINGS LIKE YOU HAVE TO HAVE, UM, THE LAND, SOME, SOME TYPE OF FORM OR FASHION WHERE, WHERE YOU'RE EITHER ON THE LAND OR YOU'VE GOT SOMETHING AGREED TO ASSOCIATE WITH THE LAND OR YOU'RE LOOKING AT OTHER PLACES AND SO FORTH TO TRY TO START GETTING A MORE REALISTIC VIEW OF WHAT, UM, REALLY IS GONNA 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, UM, I PUT THIS BULLET IN, TO BE HONEST, IT'S A LITTLE MISLEADING 'CAUSE YOU CAN HAVE MEGAWATT DATA CENTERS THAT, UM, ARE AI, BUT TYPICALLY THEY'RE GONNA BE LARGER MEGAWATT 500, 700, 900.
BUT YOU'RE READING IN THE NEWS PROBABLY ABOUT AI HYPERSCALE DATA CENTERS, AND THESE ARE GIGAWATTS, MEANING 1000 MEGAWATTS.
AND THAT'S DOUBLE THE LOAD OF OF GPL RIGHT NOW.
SO YOU'RE HAVING GIGAWATTS CENTERS THAT ARE COMING IN, ONE GIGAWATT, TWO GIGAWATTS.
THERE'S EVEN AN 11 GIGAWATT FACILITY THAT'S BEING PROPOSED UP IN THE PANHANDLE, UH, BY A FORMER GOVERNOR OF THE STATE OF TEXAS.
UH, SO THESE ARE SOME MASSIVE DATA CENTERS THAT WE'RE LOOKING AT.
SO JUST KIND OF PUTTING 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, UM, WHERE YOUR OR YOUR PICTURES THAT YOU'VE GOT THAT YOU WANNA STORE
[01:30:01]
OUT ON 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 TEXT DEMAND, UH, THAT, THAT HAVE SIGNIFICANT, UH, IMPACTS, UH, ON THE GRID.
UH, IF WE CAN GO TO THE NEXT SLIDE, PLEASE.
SO THIS WILL GIVE YOU AN IDEA OF WHAT WE HAVE IN GARLAND.
UM, SO, UH, I THINK, UH, MOST OF YOU ON THE COUNCIL ARE AWARE THAT GARLAND POWER AND LIGHT SERVES, UM, UH, AND ALSO ENCORE.
SO THE BOTH OF US SERVE ELECTRICITY IN THE AREA.
SO WHAT WE'VE DONE IS WE'VE SPLIT THIS OUT SO YOU CAN SEE WHAT'S IN THE GPNL 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, UH, 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 49 MEGAWATTS AND DATA CENTER BS FIVE MEGAWATTS.
AND SO THEY'RE STILL IN THAT PROCESS OF DEVELOPING AND GROWING ON THOSE, UH, FACILITIES.
UH, THEY HAVEN'T, UH, FULLY UTILIZED FROM ELECTRIC STANDPOINT.
UM, THEIR ULTIMATE, UH, CAPACITY.
UH, WHEN WE LOOK AT THE ENCORE SERVICE TERRITORY, THAT PARTICULAR DATA CENTER, UH, IS AT ITS FULL LOAD, UH, AT 34 MEGAWATTS.
AND THEN THE, YOU DO HAVE ANOTHER PROPOSED, UH, 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, UM, 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 500 MEGAWATTS, UM, 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.
UM, WHEN YOU LOOK AT THE ENCORE PLUS THE THE GARLAND POWER AND LIGHT, UH, IN THE GARLAND AREA, YOU'RE LOOKING AT ABOUT 750 MEGAWATTS A TOTAL MAXIMUM.
NOW WHERE ARE THEY RIGHT NOW? IN TOTAL ABOUT LESS THAN 90 MEGAWATTS.
SO THERE'S ALSO, THERE'S GONNA BE ROOM FOR GROWTH AGAIN WITH THE TWO PROPOSED, PLUS THE EXISTING FACILITIES AS THEY AS THE INCREASE.
UM, LET'S GO TO THE NEXT SLIDE AND I'LL PROBABLY COME BACK TO THIS ONE.
SO WHAT HAVE WE DONE WITH REGARDS TO, UH, THESE LARGE LOAD CUSTOMERS THAT WE HAVE IN THE GARLAND POWER AND LIGHT, UM, SYSTEM, I, I CAN'T TALK FOR ENCORE.
ENCORE CAN, CAN DISCUSS HOW THEY'VE, UH, THEY'VE GOT THEIR TARIFFS, BUT WITH REGARDS TO GPNL, WE HAVE A SPECIFIC TARIFF THAT WE HAVE IN OUR RATE ORDINANCE THAT'S ASSOCIATED WITH, UM, THESE TYPE OF LARGE LOAD CUSTOMERS SUCH AS DATA CENTERS.
SO IT'S APPLICABLE TO CUSTOMERS THAT ARE AT LEAST 20 MEGAWATTS OR GREATER IN.
AND 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, UH, OF MAKING THAT THEY SHOULD BE IN THIS TARIFF AND NOT SOME OTHER TARIFF.
UH, THE RATE COMPONENTS THAT ARE ASSOCIATED WITH THIS TARIFF, UM, UH, THE ENERGY SIDE, THAT'S THE POWER SUPPLY.
UH, THESE CUSTOMERS CAN ENTER INTO AN AGREEMENT UP TO THREE YEARS.
THEY'RE ACTUALLY EITHER 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 IT JEOPARDY OR TAX EXEMPT STATUS BECAUSE YOU ARE THERE, 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 50 MEGAWATTS OF POWER, WE GO BY 50 MEGAWATTS.
IF IT'S MORE THAN 50 MEGAWATTS, THEY ACTUALLY USE, LET'S SAY THEY USE 60, THEY WILL BE
[01:35:01]
ON THE HOOK FOR THE ADDITIONAL 10 MEGAWATTS OF WHATEVER WE BUY IT.IF THEY USE LESS THAN THE 50, LET'S SAY THEY USE 40, UH, 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, UH, YOU WE REMOVE THE PRICE RISK ASSOCIATED WITH THE PURCHASING OF THE ENERGY.
OTHER COMPONENTS IN, IN THE RATE.
ERCOT HAS CERTAIN CHARGES THAT THEY, UH, GIVE TO US.
AND WHATEVER THOSE COSTS ARE THAT ARE ASSOCIATED WITH THAT CUSTOMER, THEY AUTOMATICALLY GET PASSED THROUGH TO THEM.
UH, TRANSMISSION ACCESS COSTS.
THESE CUSTOMERS DON'T USE ANY OF THE DISTRIBUTION SYSTEM.
THEY'RE 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, UH, THERE ARE, THERE COULD BE QUESTIONS ABOUT, OKAY, IF WE'RE BUILDING FACILITIES TO SERVE THESE CUSTOMERS, HOW ARE THOSE COSTS 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 COSTS OF CONSTRUCTION AND THE 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 UH, GETS TO PARTICIPATE IN THAT COST SHARING.
AND AS I THINK COUNCIL KNOWS WITH REGARDS TO OUR TRANSMISSION SYSTEM, UH, THOSE COSTS, WE GET THE RECOVERY BACK ON PLUS A RETURN ON TOP OF THAT.
UH, WE ALSO HAVE G PANEL ADMINISTRATION COSTS.
IT'S BASICALLY OUR OVERHEAD COST.
REALLY OTHER, 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, UH, 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 CUSTOMERS, THERE'S THE 8% RE UH, RETURN ON INVESTMENT.
GIVE YOU AN IDEA WITH REGARDS TO, UM, CURRENT PRICING IN THE MARKET.
UH, IF YOU ASSUME ABOUT A HUNDRED MEGAWATTS OF LOAD, THAT'S ROUGHLY AROUND JUST A LITTLE SHORT OF $4 MILLION A YEAR IN RETURN ON INVESTMENT.
AND IF YOU WOULDN'T MIND GOING BACK TO THE PREVIOUS SLIDE, AND 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, UM, AND I DON'T KNOW IF MATT, IF YOU'RE, IF YOU'LL BE DISCUSSING IT ANY, BUT ON THE ENCORE 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, UH, FINANCIAL BENEFIT ASSOCIATED WITH, UM, THE FRANCHISE FEE FOR THE ENCORE CUSTOMERS.
UH, IF YOU COULD GO BACK TO THE NEXT SLIDE, PLEASE.
UM, ALSO IN THE TARIFF, UM, 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.
UH, YOU HAVE A LOAD SHED EVENT.
THEY HAVE TO, THEY HAVE TO PARTICIPATE, UH, THEIR PROPORTIONAL SHARE OF WHATEVER REQUESTED BY ERCOT FOR US TO REDUCE LOAD BY, THEY'RE GONNA HAVE TO REDUCE LOAD BY.
IN ADDITION, WE HAVE THEM, UM, 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, WE REQUIRE SECURITY POSTING, UH, 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 LEADS 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, UM, WELL ACTUALLY IN THAT CASE, IF THE PRICES WENT UP, WE WOULD, WE WOULD WANT THEM TO LEAVE 'CAUSE 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 SECURITY AND COLLATERAL ASSOCIATED WITH THE DIFFERENCE BETWEEN
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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, UM, WE HAVE PROTECTION THERE.
IF THERE WAS 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.
UM, THAT ROUGHLY 500 MILLION OR 500 MEGAWATTS, UH, OF POWER.
IF YOU LOOK AT TODAY'S PRICES BASED UPON ASSUME A 80% LOAD FACTOR, UH, YOU'RE PROBABLY TALKING ABOUT, UH, 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 WANNA MAKE SURE YOU'RE PROTECTED BECAUSE THERE'S A LOT OF MONEY INVOLVED.
SO THAT'S WHAT WE'VE DONE FROM A-G-P-N-L SIDE TO TRY TO MAKE SURE THAT WE ARE, UM, UH, 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.
MAKE SURE I GOT ALL MY BEHIND.
I THINK I'M, I THINK I'M GOOD OR AT LEAST FOR NOW, NOTES DATA CENTERS GENERATED 35.5 MILLION.
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 IMPACTS OF THE DATA CENTERS.
DARRELL MENTIONED THE 8% ROI AND SOME OF THE PASS THROUGH FOR FRANCHISE FEES.
THAT COULD BE SOMEWHERE IN THE FOUR 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 IN YEAR TO DATE IN 2026, WE HAVE COLLECTED $13.7 MILLION IN TAX REVENUE FROM DATA CENTERS OVER THE LAST FIVE YEARS.
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, WE TALK ABOUT OUR, OUR TAX BURDEN RIGHT NOW ON OUR SINGLE FAMILY HOMES IS ABOUT 60%.
OUR COMMERCIAL PROPERTIES ARE ABOUT 40% IN MOST METROPLEX CITIES.
YOU TYPICALLY WANT MORE OF YOUR TAX BURDEN ON YOUR LARGE COMMERCIAL PROPERTIES AND COMMERCIAL PROPERTIES HERE IN GARLAND, UH, 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'RE 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 'EM, THEY ARE THE HIGHEST PER CAPITA PER ACRE VALUE OF PROPERTY TAX THAT WE, UH, THAT WE HAVE IN THE CITY.
UH, LOOKING FORWARD, UH, 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 TIMEFRAME, 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, UH, SOME FEE REBATES AS WELL AS A $1.5 MILLION FOR FIBER OPTIC CABLE.
IN THIS TIMEFRAME, WELL 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, I DON'T HAVE A GOOD BALLPARK ON WHAT THAT WOULD BE UNTIL THOSE VALUES COME IN.
BUT DURING THIS TIMEFRAME, THIS IS $35.5 MILLION THAT HAVE COME DIRECTLY TO THE CITY.
THERE ARE THREE EIGHTIES THAT WE DID NOT RECEIVE.
WE DID NOT HAVE TO COLLECT ANY, UH, TAX REBATES DURING THAT TIMEFRAME.
THERE IS 1 3 80 STILL A VALID AFTER THIS YEAR THAT WILL GO ON FOR ANOTHER FOUR YEARS.
MIDDLEMAN GESTURES, TWO PEOPLE LOOK AT PAPERS.
ALRIGHT, WE HAVE A FEW QUESTIONS.
WE'LL START WITH DEPUTY MAYOR PRO TIM DUTTON.
[01:45:01]
THAT.UM, GPNL IS ALWAYS SOMETHING I THINK THAT, UM, THE AVERAGE EVERYDAY CITIZEN, IT PROBABLY GOES OVER MOST OF OUR HEADS.
SO I, I OFTEN REFER TO YOU AS NASA, UM, BECAUSE I, I KNOW NOTHING ABOUT NASA AND I DON'T KNOW ANYTHING ABOUT ELECTRICITY.
SO THANK YOU FOR ALL OF THAT, UM, THAT INFORMATION.
UM, I HAVE A COUPLE OF QUESTIONS, BUT I DO WANNA 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, UM, BECAUSE THE, THE TURNOUT IS VERY SMALL TONIGHT.
UM, FOR AS MANY PEOPLE THAT HAVE EXPRESSED DIFFERENT CONCERNS AND OUTRAGES.
UM, AND SO I'M, I'M A LITTLE DISAPPOINTED THAT OUR PARTICIPATION IS AS LOW AS WHAT IT IS.
UM, I WOULD'VE THOUGHT THAT WE WOULD HAVE MORE PEOPLE ASKING QUESTIONS.
SO, UM, 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, AN AMAZING AMOUNT OF LAND FOR PEOPLE TO BUILD THESE MASSIVE DATA CENTERS.
IT'S JUST THE WAY OF THE WORLD.
UM, ON THAT, ONE OF THE FIRST SLIDES, UM, THERE WAS THE USER, A USER, WHATEVER.
CAN YOU TELL US WHAT IS A WHOLESALE CUSTOMER VERSUS A COMMERCIAL USER? SO A WHOLESALE CUSTOMER, THAT PARTICULAR CUSTOMER IS ONE OF OUR, UM, MUD DISTRICTS.
SO IT'S NOT, UM, TEXT DATA CENTER.
D OH MY GOSH, WHAT IS THE ACTUAL TERM YOU'RE SELLING IT FOR? RETAIL, MUNICIPAL UTILITY DISTRICT THAT WE SERVE IN, UH, THE CITY OF DALLAS ACTUALLY.
UM, AND THEN LOOKING AT FOUR COUNCIL MEMBERS DOWN HERE, APARTMENT USER A, APARTMENT USER, B, TEXT MARGARET, LUCK, DISTRICT EIGHT.
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, UM, NEGLECT TO TELL YOU THAT ALL OF THESE NUMBERS DO INCLUDE BOTH, UM, BUILDING WATER USAGE AS WELL AS IRRIGATION.
UM, I WOULD, I WOULD BE INTERESTED TO KNOW, UM, HOW MANY, UM, APARTMENTS WE HAVE THAT USE THOSE EVAPORATIVE SYSTEMS, UM, BECAUSE IT'S NO DIFFERENT THAN WHAT A DATA CENTER IS USING.
UM, AS FAR AS DUTTON AND LUCK WATCH SCREENS, THE PERCEPTION OF USAGE, RIGHT? JOE RAMEZ JR.
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, UM, POINT OF CONTENTION FOR PEOPLE.
UM, I, I DON'T THINK THAT PEOPLE UNDERSTAND THERE ARE OTHER TYPES OF BUILDINGS THAT USE THAT SAME COOLING THAT A DATA CENTER IS USING.
AND SO, UM, I JUST, MAYBE A LITTLE EDUCATIONAL POINT FOR US.
TEXT CARISSA DUTTON AND THEN, YOU KNOW, WE HAVE A LOT OF RESIDENTS THAT, UM, HAVE MADE SOME PRETTY INTERESTING CLAIMS THAT THE DATA CENTER USING A HIGH VOLUME OF ELECTRIC IS GONNA MAKE THEIR UTILITY BILLS GO UP.
MY, THE COMMON SENSE PART OF MY BRAIN IS LIKE, WELL, UM, HOWEVER MUCH ELECTRICITY JOE USES DOES NOT ACTUALLY AFFECT WHAT MY BILL IS.
MY BILL IS DIRECTLY AFFECTED BY WHAT USAGE I HAVE.
UM, CAN YOU KIND OF HELP US, AM I ON THE RIGHT TRACK WITH THAT OR, UM, HOW MUCH TIME DO WE HAVE
UM, IT'S NASA AND, AND SO LET, LET'S LOOK FROM THE STANDPOINT OF SPECIFICALLY TO GARLAND RESIDENTS, UM, AND I'LL GO GPNL AGAIN, I CAN'T SPEAK FOR ENCORE.
UM, FROM THE GPL PERSPECTIVE, UH, THERE WILL BE MARGINS THAT WILL BE MADE THREE PEOPLE A TABLE, TEXT DATA CENTER B FROM THESE CUSTOMERS.
AGAIN, THEY'RE NOT LARGE MARGINS, BUT THEY WILL BE SUCH THAT IT'LL HELP TO OFFSET SOME OF THE COST THAT YOU SEE ON OUR RESIDENTIAL SIDE.
UH, THERE WOULD BE SOME BENEFIT THAT YOU'LL RECEIVE FROM TRANSMISSION INVESTMENT, UH, BECAUSE THE RETURN YOU GET, UH, THAT WOULD FLOW THROUGH, UH, WHERE YOU COULD SEE FROM THE STANDPOINT OF A, OF A COST INCREASE THAT'S OUT THERE IN THE MARKETPLACE.
UM, IS THAT BECAUSE OF THE ADDITIONAL DEMAND AND SUPPLY, ANYTIME THAT YOU'VE GOT, YOU KNOW, DEMAND THAT IS RISING FASTER
[01:50:01]
THAN 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 FORD 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 OF 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 FORECAST.
'CAUSE THE REALITY IS THE WAY THE ELECTRIC SYSTEM IS SET UP, YOU CANNOT HAVE MORE DEMAND THAN SUPPLY.
SO THAT'S THE REASON WHY ERCOT THROUGH AND IF SOME OF 'EM MAY HAVE HEARD THIS BATCH ZERO PROCESS, IT'S A NEW PROCESS THAT DEVELOPED TO TAKE THE LARGE LOAD CUSTOMERS THROUGH AND ANALYZE THEIR EFFECT ON THE GRID.
THIS PROCESS AS 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 200 MEGAWATTS OF POWER OF CAPACITY.
AND ERCOT MAY SAY NO, YOU'RE ONLY GONNA 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'S 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 IS, 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 GONNA BE? I DON'T KNOW.
UH, IT IS NOT GONNA BE 400,000 MEGAWATTS.
UM, SO I, 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.
YOU GET LATER OUT IT'S EVEN LESS.
BUT THEN WHEN I LOOK AT GPNL, WE'VE GONE IN YEARS AGO AND BOUGHT, UH, 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.
UM, 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, UH, POWER PRICES THAN WHAT WE'RE SEEING RIGHT NOW IN THE FORWARD MARKETS FOR EVEN ALL THIS DEMAND.
SO I'M NOT GONNA SAY THAT DATA CENTERS DON'T AFFECT THE POWER SUPPLY PRICE, BUT IT'S 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 A, 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 10 YEAR FORECAST, WE, WE DON'T SHOW ANY TYPE OF RATE RATE INCREASE IN THE 10 YEAR FORECAST FOR US.
SORRY FOR THE LONG NO, YOU'RE GOOD, YOU'RE GOOD.
SO BASICALLY THE HIGHER, OBVIOUSLY SUPPLY AND DEMAND, UM, SO IF THE DEMAND IS HIGHER THAN 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 DEMANDS ON THE GRID, NOT ON THE UTIL OR NOT THE CITY.
REGARDLESS IF THIS DATA CENTER IS IN GARLAND, PLANO, FORT WORTH, UM, SAN ANGELO, IF THE DEMAND ON THE GRID IS HIGHER, THEN THAT'S WHERE YOU'RE LOOKING AT CORRECT THE INCREASE.
UM, AND THEN, UM, ALSO KIND OF THE SAME THING WITH WATER.
UM, WE STILL HAVE A USE OR LOSE STRUCTURE WITH, WITH WATER.
SO, AND I, I DON'T THINK THAT THAT'S, UM, PROBABLY COMMON KNOWLEDGE TO MOST PEOPLE, UM, THAT WE STILL HAVE THAT STRUCTURE THAT WE, WE PAY
[01:55:01]
FOR AMOUNT OF WATER REGARDLESS IF WE USE IT OR NOT.CRYSTAL, CAN YOU TELL US, UM, 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, UM, 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.
SO TEXT CHRIS OTT IN THEORY IF AS LONG AS WE'RE NOT GOING OVER THAT, UM, YOUR WATER COULD, I MEAN YOUR WATER BILL WOULD BENEFIT BECAUSE YOU'VE GOT MORE USERS TO DIVIDE IT UP AGAINST POSSIBLY NO, THE SHOT RETURNS TO THE THREE PEOPLE.
WELL YOU HAVE MORE REVENUE THAT IS COMING IN AS A RESULT OF UM, THAT WATER USAGE.
SO YOU'VE GOT WHATEVER THAT 2 BILLION MINUS WHATEVER'S BEING USED IS NOW BEING PAID FOR BY OTHER RESOURCES OUTSIDE OF THE CITY OF GARLAND.
DOES THAT MAKE SENSE? YES MA'AM.
I ALSO WANNA POINT OUT THAT THE TAKER 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? UM, LEAVE IT TEXT MARGARET LUCK LEAVE.
IT'S 2032 BUT LET ME DOUBLE CHECK THAT NUMBER.
AND THEN THE OTHER QUESTION THAT I'VE SEEN IS, UM, WASTEWATER, UM, AND THE CONCERNS ABOUT PEOPLE DISCHARGING OR DATA CENTER IS DATA, LEMME TRY THIS AGAIN.
IT'S NOT A TALKING DAY FOR ME.
UM, DATA CENTERS DISCHARGING, UM, IN JUST STORM WATER OR UM, YOU KNOW WHAT I MEAN, SEWER, THAT ONE TOO.
TEXT CHRIS OTT, CAN YOU KIND OF TOUCH ON IF YOU KNOW, UM, WHAT A DATA CENTER'S DISCHARGE VERSUS SHERWIN WILLIAMS DISCHARGE WOULD LOOK LIKE? SO DATA 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, UM, INTERESTING.
YES,
UM, JUST, YOU KNOW, ANYTIME I CAN REMIND PEOPLE OF THE, OUR NEAR DEATH EXPERIENCE, I LIKE TO JUST DO THAT.
ALRIGHT, THANK YOU GUYS SO MUCH.
UM, 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.
AND IF YOU RECALL THE BUDGET PRESENTATION WE HAD REGARDING GPL RATES, THERE WAS NO INCREASED GPL RATES IN OUR PROPOSED BUDGET.
TEXT DYLAN HEDRICK, COUNCIL MEMBER LUCK, JOE JR.
DARL, I'M GONNA MAKE YOU DO YOUR NEXT SLIDE PRESENTATION WITH PICTURES CHRIS ODD BRINKS FROM A CUP.
MARGARET LUCK SMILES AND SPEAKS TO CARISSA DUTTON.
UM, WATER USAGE FOR THESE CURRENT DATA CENTERS THAT WE HAVE IS VERY, VERY LOW IN COMPARISON TO 129 OTHER BUSINESSES THAT USE MORE.
UM, BUT I DO WANT TO GO TO SLIDE FIVE TEXT CARISSA DUTTON, I KIND OF GOT LOST IN YOUR DATA HERE.
UM, AND, AND I REALLY WANT TO CARISSA DUTTON GESTURES KIND OF TOUCH ON, YOU TALKED ABOUT LARGE LOAD USERS.
WHAT IS THE NUMBER WHERE SOMEONE BECOMES A LARGE LOAD USER? WHAT MEGAWATT 75 MEGAWATTS.
JOE DOM IS JUNIOR LEAN FORWARD.
SO ALL OF THESE EXCEPT FOR C AND D ARE CONSIDERED LARGE LOAD USERS, CORRECT? A AND B HAVE ALREADY BEEN APPROVED, THEY'RE ALREADY HERE, RIGHT? CORRECT.
GARLAND DATA CENTER, ELECTRICITY DEMAND, TOTAL DEMAND 749 MEGAWATTS, CURRENT 88 MEGAWATTS D IS ALREADY ONLINE, BUT THAT'S STRICTLY ENCORE.
SO WHEN YOU TALKED ABOUT IF THERE'S A, IF THERE'S A, UM, AN INCIDENT LIKE YURI WHERE WE'RE HAVING ROLLING BLACKOUTS, BASICALLY, UM, HOW DOES ENCORE DEAL WITH THOSE CUSTOMERS? SO, SO DATA CENTER D OR E ACTUALLY WOULD BE NOT UNDER GPNL CONTROL DURING THOSE BLACKOUTS.
HOW DOES ENCORE HANDLE THEM? I WOULD'VE TO LET ENCORE
[02:00:01]
ANSWER THE QUESTION, BUT I I WILL SAY WHAT WHAT IS BEING DEVELOPED IN ERCOT FOR LARGE LOADS IS A PROCESS WHEREBY WHAT WE'VE ALREADY DONE VIA TARIFF, UM, A SIMILAR, SIMILAR SETUP WHERE YOU'RE GONNA HAVE TO RESPOND TO A LOAD SHED AND YOU'RE GONNA HAVE TO RESPOND TO A LOW FREQUENCY EVENT.THOSE PROCESSES ARE BEING DEVELOPED THROUGH, UM, UH, PROTOCOLS AT ERCOT.
I DON'T BELIEVE TOM, 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 'CAUSE WE WANTED THAT FOR, UH, GARLAND POWER AND LIGHT, UH, AND MAKE SURE OUR RATE PAYERS AND CUSTOMERS THAT THERE WERE A SITUATION THESE DATA CENTERS ARE SHARING IN THAT EXPERIENCE.
BUT FROM AN ONCO ENCORE PERSPECTIVE OF WHAT THEY'RE CURRENTLY DOING, I, I WOULD HAVE TO DEFER TO TO TO THEM.
WILL YOU GO BACK TO SLIDE FIVE PLEASE? SO THE TOTAL GPNL UH, MEGAWATT USAGE ON THAT, ON SLIDE SIX WAS 500.
HERE IT SAYS GPNL PEAK DEMAND WAS 5 0 6 IN 2025.
WILL YOU EXPLAIN HOW 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 5 0 6, UH, THIS WOULD'VE BEEN BEFORE DATA CENTER A, WHICH IS NOW AT 49 MEGAWATTS.
UH, THEY WERE SINGLED PROBABLY SINGLE DIGITS AT THE TIME OF THE PEAK.
UH, SO BASICALLY ALL OF THE PEAK OF THAT 506 MEGAWATTS WOULD'VE BEEN REALLY OUR TRADITIONAL RESIDENTIAL COMMERCIAL LARGE COMMERCIAL LOAD.
UH, THAT WAS IN THE MAN GESTURES WITH HIS LEFT HAND 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 50 MEGAWATTS.
SO IT'S NOT EMBEDDED IN VERY, VERY LITTLE IS EMBEDDED IN THAT 5 0 6 NUMBER.
SO WHAT DOES THAT MEAN WHEN WE LOOK AT, IF YOU COULD GO TO SLIDE SIX, TEXT TOTAL ANCHOR.
SO WHAT DOES THAT MEAN FOR US FOR GPNL? MOST OF THAT FI 499 MEGAWATTS, 500 MEGAWATTS IF IT COMES ONLINE, WILL BE IN ADDITION TO WHAT YOU SEE IN THE 5 0 6.
SO IN, IN THEORY ALL OF IT COMES ON, WE WOULD BE, INSTEAD OF 500 MEGAWATT PEAK DEMAND, WE'RE NOW AT A THOUSAND, UH, MEGAWATT PEAK DEMAND.
UH, AS FAR AS THE GARLAND POWER AND LIGHT SYSTEM, AGAIN, RELATIVELY SPEAKING, IF ERCOT ISS GROWING AT A FASTER RATE, WE'RE, WE'RE STILL GONNA BE A SMALL PERCENTAGE OF THE OVERALL ERCOT SYSTEM, WHICH WOULD GET BACK TO UM, UM, DEPUTY MAYOR PRO TEM
IT'S ALL THE GRID THAT'S IMPACT.
IT BE A SIMILAR SITUATION HERE WHERE, UM, OUR LOAD'S INCREASING, BUT IT MAY NOT BE INCREASING AT THE SAME RATE AS AS ERCOT.
ALRIGHT, BUT HOW MUCH LOAD CAN OUR SYSTEM HANDLE? AND IS THAT DETERMINED BY HOW MUCH ELECTRICITY YOU BUY? SO, SO IN, IN ERCOT, UM, 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, UM, ULTIMATELY ERCOT IS THE ONE WHO IS RESPONSIBLE FOR GETTING THE ELECTRONS OF WHERE THEY NEED TO BE.
AND THAT'S EITHER GOING AND IT'S TYPICALLY GONNA 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, UM, NEEDS ON OUR SYSTEM, UH, 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 CUS AND PEOPLE NEED TO GO THROUGH GARLAND TO GET TO THAT AREA, 30 MAY NEED TO BE INCREASED.
AND GARLAND, EVEN THOUGH THOSE PEOPLE AREN'T STOPPING OFF IN GARLAND, IT'S THE SAME WAY THAT'S HAPPENING WITH THE TRANSMISSION SYSTEM.
[02:05:01]
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, UM, UH, WITH REGARDS TO THE TRANSMISSION CERTAIN, SOME OF THOSE AREAS THAT ARE CLOSER TO THE DATA CENTERS.UH, BUT AS YOU MOVE FURTHER AWAY FROM THOSE DATA CENTERS, YOU'RE NOT SEEING THE, THE CONSTRUCTION THAT'S HAPPENING THERE.
IT'S GONNA BE MORE ASSOCIATED WITH JUST ELECTRONS FLOWING THROUGH OUR SYSTEM TO OTHER AREAS.
UM, SO REALLY WHEN YOU LOOK AT IT FROM A, A CAPACITY STANDPOINT AS IT'S DIRECTLY RELATED TO GARLAND, IT'S MORE ON THE TRANSMISSION SIDE.
UM, 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 500 MEGAWATTS OF ADDITIONAL CAPACITY IN TODAY'S MARKET.
THAT'S ABOUT A BILLION DOLLARS.
UM, 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.
UH, RATHER THAN HAVING THAT AS A LIABILITY TO THE CITY OF GOING AND BUILDING, UH, ADDITIONAL GENERATION FOR THIS KIND OF LOAD, CAN OUR, THE MAN GESTURES WITH HANDS ON THE TABLE, RIGHT.
CAN ERCOT GIVE US THE CAPACITY NECESSARY TO SERVE THESE DATA CENTERS? SO, SO WHEN YOU SAY CAPACITY ON THE, CAN ERCOT GENERATE, TRANSMIT, EXCUSE ME, CAN ERCOT TRANSMIT THE, THE POWER NECESSARY TO INCREASE, BASICALLY DOUBLE OUR MEGAWATT LOAD SO THAT I'LL, I'LL TRY TO BREAK IT DOWN INTO TWO COMPONENTS.
THE GENERATION, THE ACTUAL GENERATING OF THE ELECTRONS AS NOT CONTROLLED BY ERCOT, THAT'S A FREE MARKET.
SO THE MARKET IS GOING TO DEVELOP AND BUILD THE GENERATION.
ERCOT 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, UH, ADDITIONAL TRANSMISSION OR INCREASE CAPACITY FOR THOSE ELECTRONS TO GET WHERE THEY NEED TO GO.
UH, IF SAY WE SAID NO, UM, WE HAVE SOMETHING THAT'S CALLED A CO A CERTIFICATE OF CONVENIENCE AND NECESSITY THAT GIVES US THE RIGHT TO SERVE IN AN AREA, BUT IT ALSO IS AN OBLIGATION TO SERVE, UH, 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.
UH, 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, THE QUESTION THAT, UM, DEPUTY MAYOR PRO TEM TEXT MARGARET LUCK, 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? MARGARET, LUCK GESTURES WITH HER HANDS.
WHO PAYS FOR THAT? SO HISTORICALLY WHAT YOU WOULD SEE IS IF THE LOAD, WHATEVER DATA CENTER OR INDUSTRIAL CUSTOMER, WHOEVER IT MAY BE COMES IN, UM, YOU WOULD HAVE, UM, 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 COSTS WERE ASSOCIATED WITH, UM, BENEFITING THE GRID, THAT COST WOULD ALL BE UPLIFTED TO THE CONSUMERS.
ONE OF THE THINGS THAT'S BEING PROPOSED RIGHT NOW IS, UM, TAKING AND MODIFYING THAT THAT SITUATION WHERE IF YOU'VE GOT EVEN THE, WHAT I CALL THE SYSTEM BENEFITS, UM, THOSE COULD POTENTIALLY BE PAID FOR BY THE DATA CENTERS AS WELL.
UH, THERE'S PROS AND CONS ASSOCIATED WITH THAT TEXT.
YEAH, THE, THE PRO IS IT THAT YOU WOULD HAVE, UH, 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 THERE WERE GONNA BE 200 MEGAWATTS AND THEY ONLY CAME IN AT 50, THEN
[02:10:01]
SOMEBODY'S PICKING UP THAT EXTRA CAPACITY COST.UM, THE PROBLEM WITH THAT IS IF YOU HAVE ALL THESE LARGE LOADS COME IN AND THEY PAY FOR EVERYTHING, UH, THE REALITY IS IF I'M LOOKING AT, I'M AN INVESTOR ON UTILITY, WHY AM I IN BUSINESS? THAT'S THE ONLY WAY I CAN MAKE A PROFIT IS BY DOING THOSE INVESTMENTS.
SO THERE'S GONNA BE THIS BALANCE SOMEWHERE ALONG THE WAY THAT YOU'RE, YOU HAVE TO LOOK AT THE INTEREST OF THE, THE CONSUMER AND ALSO THE UTILITY SIDE OF THINGS BECAUSE YOU STILL WANT THE UTILITIES PROVIDING THE SERVICE.
UM, 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, THE SYSTEM BENEFITS, UM, THAT ARE ASSOCIATED WITH PROVIDING THEM SERVICE BEYOND THOSE COSTS THAT ARE JUST DIRECTLY, SOLELY ATTRIBUTABLE TO THEM TO PROVIDE THEM SERVICE.
UH, AND I HOPE THAT MAKES SENSE.
I KNOW THAT IT'S, IT'S A COMPLEX, IT'S A VERY COMPLEX ISSUE.
UM, 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 UM, LE NEW MARGARET LUCK USES HER RIGHT HAND FIBER, 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 TEXT CHRIS OTT TO ALLOW US TO SERVE YOU BETTER.
AND THEN YOU'RE, WELL, I WAS GETTING CRAPPY SURFACE BEFORE
I'M NOT SAYING THAT GPNL PROVIDES BAD SERVICE BY ANY MEANS, TEXT OTT, DISTRICT 10, UH, 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 ARE 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 GPNL AND THE REST OF ERCOT OKAY.
SO IF WE JUST FOCUS ON GPNL, 'CAUSE AGAIN, I CAN'T SPEAK FOR ENCORE, JUST GPNL FROM THE STANDPOINT OF MAKING TRANSMISSION INVESTMENT, IT ACTUALLY IS BENEFICIAL AT THE END OF THE DAY FOR OUR RATE PAYERS WHEN WE ARE MAKING THE TRANSMISSION INVESTMENT.
OKAY? BECAUSE WE GET THE COST RECOVERY DOLLAR FOR DOLLAR OF EVERYTHING THAT WE PUT IN AS FAR AS UH, 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 ARE 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 POWERLIGHT RATE PAYERS.
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 RATE PAYERS OF GUARD POWER AND LIGHT, WERE GONNA GET TO PAY FOR IT.
AND WE SAID WE NEED SOME WAY TO TRY TO OFFSET THAT COST.
AND SO WHAT WE DID IS WE STARTED INVESTING IN TRANSMISSION ELSEWHERE IN THE STATE AND THAT ADDITIONAL REVENUE THAT WE RECEIVED 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 IS 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, 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 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.
UM, AND THAT'S SOME OF THE THINGS THAT ARE BEING
[02:15:01]
DISCUSSED TO 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 GONNA MEET, AND IF YOU DON'T MEET IT, THEY PULL FROM THAT SECURITY AND USE THAT TO OFFSET THE COST FOR THE RATE PAYERS.
THAT'S ONE CONCEPT THAT'S BEING DISCUSSED.
BUT THIS IS SOMETHING THAT IS THREE PEOPLE TOTAL GARLAND 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 IS 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.
AND SO THAT'S SOMETHING THAT IS BEING DISCUSSED.
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.
UH, BACK TO SLIDE FOUR PLEASE.
SLIDE FOUR, DATA CENTER WATER USE KEY FINDINGS.
SO THE UH, 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 TEXT DATA CENTER KEY FINDINGS, YOU SAID THAT IF THEY, THEY, THOSE DATA SYSTEMS USE 300,000 GALLONS, YOU'VE HAD TO DRAIN IT TO ZERO AND FILL IT ALL BRAND NEW.
THAT WOULD BE 300,000 I THINK.
SO WHAT YOU, YOU SAID ON AVERAGE? ON ON AVERAGE.
AND SO HELP ME SQUARE THAT WITH $6 MILLION USAGE, 6 MILLION GALLON OR 7 MILLION GALLON USAGE ON WHAT ARE USE RANKING DATA CENTERS RANK LOW, UH, NUMBER 1 29 THERE ON SLIDE THREE.
WHERE'S THE REST OF THOSE MILLIONS GOING? IRRIGATION.
THAT'S JUST THE IRRIGATION SYSTEM.
YOU USE 300,000 FOR THE, FOR THAT AND 6 MILLION, 600,000 IS JUST A WAT OF THE GRASS AND TREES THAT WE REQUIRE THEM TO HAVE.
IS THAT RIGHT? THE MAJORITY OF THIS WAS FROM THE IRRIGATION METERS? THAT IS CORRECT.
I I WANT, 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 AND THE GRASS OUTSIDE THE BUILDING.
IT'S USING A LOT OF THAT WATER.
I I WANTED TO MAKE SURE THAT WAS, I I THOUGHT THAT WAS THE CASE.
JUST WANTED TO MAKE SURE, MAKE SURE THAT POINT WAS MADE.
UM, AND THEN MATT, ON YOUR SLIDE EIGHT YOU SAID, UM, PROPERTY.
SO DOES PROPERTY THERE INCLUDE A VALOREM TAX AND BUSINESS, PERSONAL PROPERTY SERVERS TEXT MICHAEL A WILE BUSINESS? PERSONAL PROPERTY IS THE SERVERS, THE ACTUAL FACILITY ITSELF WOULD BE REAL PROPERTY.
AND THE SALES TAX IS FROM THE SALE.
WHEN WE, WHEN THEY PURCHASE THE SERVER, WE GET SALES TAX.
BUT THERE'S TWO OTHER PROPERTY TAXES.
YOU RIGHT, THERE'S REAL PROPERTY AND THEN THERE IS BUSINESS PERSONAL PROPERTY.
YEAH, IT'S JUST THE BUILDING ITSELF.
IF IT WAS EMPTY, THEY WOULD STILL HAVE TO PAY TAX ON THAT BUILDING.
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.
AND I BELIEVE THE SPLIT IS, UH, 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.
UH, AS UH, MORE MORE FACILITIES COME ONLINE.
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 'CAUSE THERE'S THREE, CORRECT? TECHNICALLY, AND SO I WANTED TO, I MEAN YOU JUST LIST TWO AND UH, BUT PROPERTY INCLUDES TWO, TWO DIFFERENT KINDS OF PROPERTY.
I JUST WANNA MAKE SURE I WAS CLEAR ON THAT AND THAT'S A ANOTHER POINT THERE.
OKAY, SO DATA CENTERS, OF COURSE IT'S A LOT OF CONTROVERSY AND YOU'RE EDUCATING US, SO THANK YOU SO MUCH.
UM, I'M LIKE, LET'S SEE, WHAT IS IT? DEPUTY MAYOR CARISSA.
I AM, I'M LIKE, I DON'T KNOW, I JUST WANNA KNOW IF THE ELECTRIC BILLS ARE GONNA GO UP.
AND YOU KIND OF EXPLAINED THAT, BROKE THAT DOWN REALLY QUICK.
IF YOU CAN GO TO SLIDE SIX, TEXT CHRISTINA CIANO, DISTRICT FOUR.
UM, HOW LONG HAVE THESE DATA CENTERS BEEN HERE IN GARLAND? HOW LONG HAVE THEY BEEN HERE? DOES ANYBODY KNOW GARLAND ELECTRICITY DEMAND? ABOUT HOW LONG? LIKE FIVE YEARS, THREE YEARS? TWO OF 'EM.
[02:20:01]
BEEN HERE SINCE 2017.THEY'VE BEEN IN GARLAND SINCE 2017.
AND WE HAVEN'T REACHED OUR MAX.
IS THAT OKAY? I JUST WANNA MAKE SURE I HAVE THAT RIGHT.
AND THEN THE ONLY ONE THAT JUST REACHED THE MAX IS NOT EVEN, IT'S ENCORE, NOT OURS.
IS THAT CORRECT? AND SINCE 2017, WITH THEM BEING HERE, HOW MUCH HAS OUR ELECTRICITY RISEN? I'M JUST WONDERING HOW LONG HA HOW MUCH HAS IT RISEN? HOW, 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 IT, IT WOULDN'T HAVE ANYTHING TO DO WITH THE DATA CENTERS.
IT WOULD HAVE TO DO WITH, UM, OTHER MM-HMM.
YEAH, IN 2023 OUGHT OF 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 CHANGED EVEN AFTER WINTER STORM.
YURI, YOU WOULD THINK, OH YEAH, 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.
UM, THAT'S WHEN YOU SAW THE BIG CHANGE IN THE RATES THREE SIT AT A TABLE, UM, IN ERCOT.
OKAY, SO IT WASN'T BECAUSE OF MASSIVE ENERGY PULLED FROM THE DATA CENTERS? NO.
'CAUSE I YOU HAVE TO BREAK THIS DOWN FOR ME AND THEN WHEN, THIS IS ANOTHER QUESTION THAT SOUNDS REALLY DUMB.
SO I DO APOLOGIZE WHEN WE HAVE THAT OUTAGE, LIKE WHEN, YOU KNOW, LIKE HAPPENED.
THANK YOU FOR TO YOUR CREW REALLY QUICK.
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 GONNA SELECT THAT ROLLS OUT FIRST? OR ARE YOU GONNA 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, THE STORM HAPPENED AGAIN? SO, SO IT'S PROPORTIONAL.
BECAUSE WE CAN'T BE DISCRIMINATORY UHHUH
UM, 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, RIGHT? WE, 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 PORT, THEIR PORTION TO COME DOWN FROM THE STANDPOINT OF, OF WHATEVER ERCOT IS REQUIRED.
SO IF IT'S, LET'S SAY IT'S 50 MEGAWATTS THAT ERCOT SAYS YOU NEED TO COME DOWN AND THE DATA CENTERS MAKE UP HALF OF OUR OVERALL LOAD, THEY'RE GONNA HAVE TO COME UP WITH 25 MEGAWATTS, AND THEN THE REST OF THE SYSTEM WOULD COME UP WITH THEIR 25 MEGAWATTS.
SO THAT WAY IT'S PROPORTIONALLY SHARED TO THE LOAD AND YOU'RE NOT IN A DISCRIMINATORY TYPE OF SITUATION WHERE YOU'RE SAYING, I'M ONLY GONNA PICK THAT PARTICULAR TYPE OF CUSTOMER.
AND THEN ONE MORE THING AND THEN I, I JUST WANNA MAKE SURE.
SO ENCORE SERVICES GARLAND AS WELL, CORRECT? TEXT.
IF A DATA CENTER IS PROPOSED HERE, IT'S EITHER GONNA BE G, P AND L OR ENCORE REGARDLESS.
DOES ENCORE SOURCE THEIR OWN WATER OR DO THEY GET WATER FROM, WHERE DO THEY GET THEIR WATER FROM? WE DON'T KNOW.
RIGHT? IF IT'S IN THE, IF IT'S IN THE, IF IT'S AN ENCORE CUSTOMER, UHHUH, IT'S AN ENCORE CUSTOMER INSIDE THE CITY.
I'M NOT AWARE OF ANY, ANY ALLOWANCES FOR A CUSTOMER GETTING P UH, WATER FROM SOME OTHER SOURCE BESIDES THE CITY OF GARLAND? THAT'S CORRECT.
AND THEN, THEN THANK YOU TO YOUR CREW AND THEN THANK YOU MAYOR.
THREE TEXT MARGARET, LUCK DISTRICT SIX.
MY GOODNESS, WHAT A REPORT THIS IS, UH, IT TOOK A LITTLE TIME TO PUT THIS TOGETHER.
THANK YOU FOR YOUR STAFF PUTTING THE TIME INTO THIS.
AND, UH, AND THANK YOU TO THE COUNCIL FOR, UH, FOR, HAD SOME VERY GOOD QUESTIONS.
UM, MOST OF MINE HAVE ALREADY BEEN ANSWERED.
UH, THE, IT'S IT, YOU KNOW, UH, THE WATER, IT'S BEING USED MOSTLY ON THE LAWN.
IT'S VERY OBVIOUS AND THE TEXT WORK SESSION AS FOR POWER, UM, FROM WHAT I UNDERSTAND, UH, BEFORE ANY ONE OF THESE, UH, OF 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 75 MEGAWATTS 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? ARE THEY STILL PROPOSED
[02:25:01]
AS IN THEY'RE IN CONSTRUCTION OR THEY'RE PROPOSED AS IN THERE A POSSIBILITY WAITING FOR THE APPROVAL? SO FROM A ERCOT PERSPECTIVE, UH, DATA CENTER C DOES NOT GO THROUGH THE, BECAUSE IT'S NOT 75 MEGAWATTS, IT'S BELOW THAT.UH, WITH REGARDS TO DATA CENTER, UH, CENTER E UH, IT IS BEING, IT'S BEEN SUBMITTED OF, OH, 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 IS RE RESETTING EVERYTHING BECAUSE BACK FOR MANY YEARS, THE WAY ERCOT DID THESE IS THAT IT WOULD BE INDIVIDUAL DATA CENTERS, INDIVIDUAL LARGE LOADS, JUST DON'T SAY DATA CENTERS LARGE LOADS.
'CAUSE IT COULD BE ANY, IT COULD BE IN A LARGE REFINERY, RIGHT? UM, THOSE LARGE LOADS WOULD BE INDIVIDUALLY REVIEWED AND THEN, UH, 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.
AND THE PROBLEM IS AS SOON AS YOU FINISH STUDYING ONE, YOU HAVE ANOTHER ONE COMES ON AND IT IMPACTS THIS TEXT WORK SESSION, UH, LARGE LOAD THAT WAS GONNA BE COMING IN.
AND SO YOU GOTTA 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 GONNA BATCH EVERYBODY TOGETHER THAT MEET CERTAIN CRITERIA AND WE'RE GONNA RUN THE ANALYSIS BASED UPON THOSE THAT ARE IN BATCH ZERO.
AND THEN WE'RE GONNA 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, UM, YOU KNOW, YOU HAVE 200 MEGAWATTS OF CAPACITY IMMEDIATELY.
IT MAY BE THAT ERCOT SAYS NO, YOU HAVE 50.
AND THEN ONCE WE SEE CAPACITY INCREASE, UH, IN THE AREA ABLE TO SERVE, THEN MAYBE YOU GO UP TO THE NEXT LEVEL AND THEN THE NEXT LEVEL.
AND SO, UM, IT, IT'S, UH, THIS IS KIND OF A GAME CHANGER FOR US FROM THE STANDPOINT OF THIS NEW PROCESS.
UH, SO, SO WE'LL SEE THIS, UH, DATA CENTER C HAS ALREADY BEEN APPROVED FROM THE OLD PROCESS.
NOW WHAT'S GONNA HAPPEN WITH BATCH ZERO? AND, UM, 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, YOU KNOW, SOMETHING LESS, SOMETHING IN BETWEEN, UM, ON DATA CENTERS A AND B, SINCE THEY'RE NOT AT UM, PROPOSED CAPACITY YET.
UH, HAVE WE, DO WE ALREADY HAD, SINCE THOSE ARE IN G, P AND L'S TERRITORY, DO WE ALREADY HAVE ASSETS IN PLACE TO SUPPORT THAT LEVEL OF POWER? YES.
AND UM, LET'S SEE, I THINK THAT ERCOT WAS TALKING ABOUT THAT FOR LOADS OVER 250 MEGAWATTS THAT THEY'RE TALKING ABOUT, UH, UH, RECOMMENDING OR SLASH RE UH, REQUIRING BRINGING YOUR OWN POWER TO THE PROPOSAL.
IS THAT TRUE ALSO? UH, I HAVEN'T HEARD THE, THE, UH, MEGAWATT DELINEATION ON TOM, HAVE YOU? I HAVEN'T HEARD THE MEGAWATT DELINEATION, BUT THERE IS, THERE'S DEFINITELY FOR THESE I WOULD CALL THE HYPER HYPERSCALERS MM-HMM
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, UM, YOU KNOW, IF YOU'RE IN THAT LINE OF BUSINESS, IT MAY MAKE SENSE TO, UH, BRING YOUR OWN GENERATION, UH, SO THAT YOU GO AHEAD AND HAVE THE FACILITIES IN PLACE.
BUT I, I'M NOT AWARE OF A, OF A, UM, MEGAWATT, YOU KNOW, SPECIFIC NUMBER.
BUT, UH, THOSE HYPERSCALERS, SO TO SPEAK, IF THEY DO BRING THEIR OWN POWER, THOSE ASSETS WOULD NOT BE SOMETHING THAT THE, UM, THE PEOPLE OF TEXAS, THE RATE PAYERS WOULD BE PAYING FOR, IT WOULD BE PAID FOR BY THEIR OWN PROJECT, CORRECT? CORRECT.
BROOM WAS, PEOPLE MONITORS SHOW TOTALS.
UM, I'D LIKE TO THANK YOU FOR THE, UH, CAREFUL CONTRACT THAT YOU HAVE CREATED THAT GPNL HAS FOR THESE LARGE LOAD CUSTOMERS.
IT LOOKS LIKE IT'S WELL THOUGHT THROUGH, SO THAT TO MINIMIZE RISK FOR THE, UH, FOR THE PEOPLE OF GARLAND AND RETURNS TO CONFERENCE ROOM WITH ATTENDEES.
OH, THAT'S, I THINK THAT'S ALL THE QUESTIONS THAT I HAVE, BUT I DO JUST WANNA EXPRESS THANKS AND, UH, UH, AND THANK YOU FOR THE, FOR THE CITIZENS OF GARLAND BECAUSE THIS IS A VERY EDUCATING EXPERIENCE.
THANK YOU MR. MAYOR, TEXT ED MOORE, JUSTIN CARAWAY, FIRST
[02:30:01]
OF ALL, I JUST WANNA SAY, UH, I FEEL SO MUCH BETTER AFTER LISTENING TO THIS PRESENTATION TONIGHT AND THEN, UH, I FEEL GOOD BECAUSE, UH, WHAT YOU'VE DONE, YOU'VE ANSWERED, DID, DID YOU RECEIVE THOSE? ALL THOSE QUESTIONS THAT I GAVE TO THE CITY MANAGER TO SEND OVER TO YOU? NOW THAT WAS A LIST OF QUESTIONS THAT MUST HAVE BEEN 30, 40 DIFFERENT QUESTIONS AS IT RELATES TO THIS ISSUE.AND, UH, 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
AND THAT, UH, THERE'RE GONNA BE, UH, 250,000 PEOPLE TONIGHT.
THERE AT LEAST A HUNDRED THOUSAND THAT ARE WATCHING THIS SESSION.
BUT AS A MATTER OF FACT, PROBABLY THE ONE PERSON THAT SENT ME THOSE 30 QUESTIONS, ALONG WITH 10 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 ARE REAL.
ED MOORE LOOKS AT CHRISTINA AVIANO, YOU SIMPLIFIED TONIGHT.
YOU'VE SHOWN US TONIGHT A GOOD CHECK AND BALANCE SYSTEM, CHECK AND BALANCE SYSTEM TO GPNL.
JUST THE THREE OF YOU WHO ARE SITTING THERE RIGHT NOW.
I TALKED TO MY FELLOW COUNCIL MEMBER WHO'VE JUST COME ON, UH, TO COUNCIL ALL THE TIME, AND I TELL THEM FIRST TWO YEARS, THERE'S A TREMENDOUS LEARNING CURVE.
IT'S LIKE A WATER HOSE BEING, AND YOU ARE BEING DRENCHED.
WE ARE JUST NOW COMING TO THE UNDERSTANDING 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.
WE HAVE THREE DATA SETS AND WE'VE JUST TAKEN HOW MANY HOURS TO GO OVER THIS INFORMATION AS IT RELATES TO EXPLAINING THEM.
ED MOORE GESTURES WHILE SPEAKING, 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.
MAYBE WE TAKE, HEY ERCOT, 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.
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 GARLAND.
AND WITH THE INFORMATION THAT YOU'VE PRESENTED TONIGHT, THIS COUNCIL IS NOW EDUCATED TO THE EXTENT ANY OTHERS THAT COME, WE KNOW THE QUESTIONS TO ASK.
IS THERE GONNA BE ENOUGH WATER? GOD'S NOT MAKING NO MORE WATER TEXT JIMMY TRAN.
BUT I HEARD YOU SAY SOMETHING TONIGHT ABOUT, WELL, THE COOLING 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 TO 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.
AND SO WHAT I WANNA SAY TO YOU TONIGHT IS I TRULY APPRECIATE THE MANNER BY WHICH YOU HAVE SAT HERE AND EXPLAINED TO US THIS SITUATION.
YOU'VE GIVEN US SUFFICIENT INFORMATION THAT AS 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 DO HAVE THE STAFF AND PROFESSIONALS THAT UNDERSTAND IT FOR US, ANY QUESTIONS THAT WE HAVE, YOU'RE GONNA BE ABLE TO TELL US WHAT WE NEED TO KNOW.
SO WITH THAT, MR. MAYOR, I JUST WANNA SAY TO THIS COUNCIL, FIRST OF ALL, I DO AGREE.
WHERE WAS, I SAID WE'VE ASKED A HARD QUESTIONS HERE TONIGHT AND NOT ONLY ASK QUESTIONS, BUT WE'VE GOTTEN VERY GOOD ANSWERS AND I THINK THAT WE HAVE A VERY
[02:35:01]
CLEAR DIRECTION NOW BY WHICH WE CAN GO FORWARD AND THIS IS NOT GOING TO REALLY BE A PROBLEM FOR US.I APPRECIATE YOUR THOUGHT THAT WE HAVE A HUNDRED THOUSAND PEOPLE WATCHING
A CERTAIN SOCCER GAME GOING ON.
FIRST OF ALL, THANK YOU SO MUCH FOR THE PRESENTATIONS AND PUT ALL TOGETHER AND THANK YOU.
AS I'VE SEEN THE MANAGER MY BEST, I SENT HIM FROM MY RESIDENTS, A LOT OF THEM ASKED THE SAME QUESTION.
'CAUSE IN DISTRICT ONE, AND I APPRECIATE THAT, UM, TAKES THE TEAM A LOT OF WORK HOURS TO GO BACK TO HOW MANY YEARS.
AND WHAT I HEARD SO FAR IS SINCE 20 SEVENTEENS, ABOUT 10 YEARS THAT WE HAVE DATA CENTER HERE, AND FROM THE SLIDE SIX I THINK IS, UH, DIMENSION ABOUT WE ARE REACHING 12% OF THE MEGAWATTS THAT ON DEMANDS IN GARLAND.
SO WE STILL HAVE 80 SOMETHING PERCENTS THAT NOT BEING USED.
UM, MY QUESTIONS SHOULD BE WHEN DO YOU THINK IN, IN TERMS OF ELECTRICITY? UM, THE GOOD PART THAT, THAT ON PAY PAGE SEVEN, THAT TPNL PUT A LOT OF STEP AND PROCEDURE IN PLACE THAT MITIGATES MAN AT U TABLE TOUCH HIS FACE THAT HELP OUR RESIDENTS.
MOSTLY THEY, THE LARGE LOADERS PAYS THE COST MOST OF THEM.
UH, MY QUESTION SHOULD BE WITH THIS 12% USERS FOR THE PAST ABOUT 10 YEARS, WHEN IS YOUR FORECAST JUST KIND OF FORECAST THAT WE ARE GONNA REACH THE LEVEL THAT WE, UM, YOU KNOW, THE KIND OF DEMAND PROPOSE AND WHEN, SO LOOK AT MONITORS, ANTICIPATE THAT THE USER OR THE CONSUMERS THAT MIGHT BE CHIP IN THE COST, IF, IS THAT GONNA BE FIVE YEAR, TWO YEAR, 10 YEARS? UH, IF YOU HAVE ANY INFORMATION INSIDE.
SO IF YOU LET ME, 'CAUSE I KNOW THE PEOPLE OUT IN THE OUT AREA CAN'T HEAR UNLESS I'M RIGHT NEXT TO THIS.
SO TEXT TOTAL GARLAND, IT WE'RE PROVIDED WHAT ARE CALLED LOAD RAMPS, UH, FROM THE DATA CENTERS, WHICH GIVE US THE INDICATIONS OF, UM, TYPICALLY IT'S ON A QUARTERLY BASIS OF WHEN, WHEN THE LOAD'S GONNA BE COMING ON AND, AND AT WHAT TIME AND, AND YOU KNOW'S THE FUTURE FORECAST.
UH, IF I GO BY THAT, WE, WE WOULD BE, LET'S SAY, MUCH MORE FULLY UTILIZED AS FAR AS CAPACITY, UM, REALLY FOR THEIR, THEM.
IT DEPENDS UPON WHEN THEY GET THEIR CUSTOMER THAT IS GONNA BE UTILIZING THE FACILITIES.
AND, UM, IF YOU'VE TEXT TOTAL ANCHOR, YOU'VE, YOU'VE DEALT MUCH WITH DEVELOPERS.
UH, IT'S USUALLY, YOU KNOW, THEY'RE, THEY'RE MORE OF THE GLASS IS HALF FULL AND I'M PROBABLY A LITTLE MORE OF THE GLASS IS HALF EMPTY.
UH, SO THEY'RE A LITTLE MORE OPTIMISTIC ON WHEN THEY'RE GONNA BE GETTING THOSE CUSTOMERS COMING IN AND THE LOAD AND SO FORTH, HISTORICALLY IS WHAT I'VE SEEN.
SO WE HAVE LOAD RAMP ANALYSIS THAT THEY PROVIDE US.
UM, UM, YOU CAN TAKE THAT FOR WHAT IT'S WORTH.
UH, SO I CAN'T TELL YOU EXACTLY WHEN THEY'RE GONNA BE COMING ON.
WE GET INDICATIONS, THEY, THEY, UH, WE SEE SOME ADDITIONAL BUILDING THAT'S OUT THERE, SO THAT GIVES US SOME INDICATION.
BUT YES, THAT, UM, ADDITIONAL USAGE SHOULD BE COMING.
UH, BUT AS FAR AS SPECIFIC TIMEFRAMES, I I, I CAN'T GIVE YOU AND SAY IT'S GONNA BE THIS TIME NEXT YEAR OR IF IT'S GONNA BE TWO YEARS OR IF IT'S GONNA 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? UM, MAYBE YES.
PRE APPRECIATE IT AND GO BACK TO, UM, UH, THE SLIDES RELATE TO THE 35.5 MILLION TAX REVENUE IS FOR THE PAST FIVE YEARS.
UH, HOW SIGNIFICANT IT IS THAT HELP THE CD CURRENT FINANCIAL CHALLENGE? UH, 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.
I THINK THIS IS TONIGHT THAT WILL HAVE A LOT OF OUR RESIDENTS SINCE, UH, UH, THEY, THEY HAVE, THERE'S A LOT OF ANSWERS SO FAR, SO I APPRECIATE IT THEN.
I HAVE TWO MORE PEOPLE IN THE QUEUE HAVE SPOKEN ALREADY.
I'M GOING TO ASK IF THERE'S SOMETHING
[02:40:01]
NEW TO ADD TO THE CONVERSATION.FIRST TEXT MICHAEL J BETS CITY MANAGER TEXT DYLAN HEDRICK MAYOR, DEPUTY MAYOR PRO, TIM DUTTON.
UM, I JUST THOUGHT IT WAS IMPORTANT TO MENTION THAT THE LARGE DRIVER OF OUR ELECTRIC RATES GOING UP IS THE COST OF NATURAL GAS.
UM, I WOULD BE FAR MORE FEARFUL OF, UM, ANOTHER SPIKE IN NATURAL GAS COSTS, UM, RAISING MY ELECTRIC BILL THAN ANYTHING, TO BE HONEST.
UM, HAS ERCOT DENIED ANY OF THE LARGE LOADS IN GARLAND WITH THROUGH THEIR, UM, EVALUATION PROCESS? I CAN'T RECALL OF, OF BEING DENIED.
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 LOADS, LUCK GESTURES, OTHERS WATCH LARGE LOADS, NOT EVEN DATA CENTERS.
UM, 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, UM, SO THAT IS MUCH BETTER.
I SEE NO OTHER QUESTIONS, SO THANK YOU VERY MUCH.
SECRETARY, IF YOU'D PLEASE CALL OUR SPEAKER ON THIS ITEM.
JAMES COOK, THE MAN ON THE LEFT, REST HIS CHIN ON HIS HAND.
THE MAN IN THE CENTER LOOKS DOWN AT PAPERS ON THE TABLE.
ALL RIGHT, SIR, IF YOU JUST GIVE YOUR NAME AND ADDRESS FOR THE RECORD.
DO YOU HAVE THREE MINUTES? MY NAME IS JAMES COOK.
I LIVE IN DISTRICT THREE 1-833-MEADOWVIEW DRIVE.
JAMES COOK PLACES HIS PAPER ON THE TABLE AND ADJUSTS A LAPTOP.
WELL, ACTUALLY IT'S EVENING NOW.
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.
JAMES COOK SITS AT A TABLE, LOOKS AT A PAPER, 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.
THAT'S, THAT'S OFTEN MISSING JAMES COOK.
IT'S LOOKS FORWARD 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 AND THE X-RAY OR WHATEVER, THE RADIOLOGIST, THE HOSPITAL GET PAID FOR IT ONCE, BUT THEY HAVE TO STORE THOSE IMAGES HERE IN TEXAS FOR 10 YEARS, NOT JUST AT THE HOSPITAL, BUT TWO OFFSITE DATA CENTERS, TYPICALLY NOT OWNED BY THE HOSPITALS.
JAMES KOCH LOOKS TO HIS LEFT, THEN BRIEFLY FORWARD.
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, JAMES COOK LOOKS DOWN AT THE PAPER ON THE TABLE AND BRIEFLY TAPS THE TABLE WITH HIS FINGER.
WHAT WE'RE DOING IS TAKING THAT DATA AND WE'RE DE-IDENTIFYING IT.
JAMES COOK LOOKS UP RIGHT THEN FORWARD AND THAT DATA WILL BE USED FOR AI RESEARCH TO DETECT DISEASES.
AND ALSO ADDITIONALLY, THERE'S A SEVERE SHORTAGE IN THE HEALTHCARE INDUSTRY.
RADIOLOGIST, JAMES COOK LOOKS RIGHT, AGING OUT, LACK OF PHYSICIANS, NURSES, AND OTHER CARE STAFF.
JAMES COOK LOOKS UP AND RIGHT.
THEY'RE NOT GONNA REPLACE AI IS NOT GONNA REPLACE, BUT IT WILL CERTAINLY ASSIST.
AND SOME OF THE, SOME OF THE NEW THINGS THAT HAVE COME ALONG NOW HAVE GREATLY ENHANCED ARC.
YOU GO IN AND GET A MAMMOGRAM WE'VE BEEN USING FOR MANY, MANY YEARS.
CAD, WHICH IS COMPUTER AIDED DETECTION.
JAMES KOCH LOOKS DOWN AT HIS LAPTOP TYPES, THEN LOOKS UP WITH A LISTENING EXPRESSION.
THE OTHER THING TOO IS THAT DATA CENTERS,
[02:45:01]
THEY DON'T EMPLOY MINIMUM WAGE PEOPLE.AND YOU CAN EXTEND THAT TO ALL THE RESEARCHERS AND EVERYBODY ELSE, AND ALL THE OTHER PROFESSIONS THAT NEED THAT DATA.
SIR, I'M GONNA HAVE TO ASK YOU TO SUM UP PLEASE.
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 IN.
MADAM SECRETARY, DO WE HAVE ANY OTHER SPEAKERS ON THIS TOPIC? NO, SIR, WE DO NOT.
WELL THEN COUNSEL, THANK YOU FOR THAT DISCUSSION.
UH, WE'RE GONNA TAKE A RECESS NOW.
I ASK YOU TO BE BACK AT NINE O'CLOCK.
MICHAEL BETS LOOKS AT MONITOR, WOMAN WATCHES.
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.
MICHAEL BETS LOOKS AT DOCUMENTS, WOMAN PICKS, PAPERS, LOOKS DOWN.
WE'LL MOVE ON TO ITEM NUMBER 11.
IT'S MAYOR APPOINTMENTS TO COUNCIL COMMITTEES AND OUTSIDE BOARDS.
UH, 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, UM, BOARDS THAT HAVE MADE APPOINTMENTS TO, I HAVEN'T HEARD ANY OBJECTIONS FROM ANY OF THE COUNCIL MEMBERS ON THEIR ASSIGNMENTS.
SO I, UH, ALSO WANNA SAY THANK YOU TO EVERYONE WHO GIVES UP THEIR TIME TO SERVE OUTSIDE OF JUST THE WORK SESSION MEETINGS AND THE GENERAL MEETINGS TO, UH, SERVE ON THE COUNCIL COMMITTEES.
'CAUSE THIS IS WHERE A LOT OF THE REAL WORK ON COUNCIL HAPPENS.
SO I, I THANK YOU ALL FOR BEING PART OF THAT PROCESS.
NAME BANNERS, LUCK ON OUR AUDIT COMMITTEE.
WE HAVE THE CHAIRMAN ED MOORE, AND WE HAVE COUNCIL MEMBER MARGARET LUCK AND MAYOR PRO TEM OT 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 SANO 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, UM, MAYOR PRO TEM OTT WITH COUNCIL MEMBER MOORE AND COUNCIL MEMBER THOMAS PUBLIC SAFETY IS MAYOR PRO TEM OTT AS THE CHAIR WITH COUNCIL MEMBER ANO AND DEPUTY MAYOR PRO TEM DUTTON.
OUR TRANSPORTATION AND 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 OT AND ON THE DALLAS REGIONAL MOBILITY COUNCIL AND THE REGIONAL TRANSPORTATION COMMITTEE.
COUNCIL MEMBER MOORE REPRESENTS US THERE.
THE MAN ON THE LEFT LOOKS RIGHT AND SMILES THE MAN ON THE RIGHT.
NEXT ITEM ON OUR AGENDA IS ITEM NUMBER 12, OUR AUDIT COMMITTEE MEETING REPORT.
COUNCIL MEMBER MOORE, YOU CHAIR OF THIS COMMITTEE, SIR, THE WOMAN LOOKS DOWN AT PAPERS.
TEXT CHRISTINA ANO, WE'RE GOING TO TRY AND BE VERY BRIEF THIS EVENING.
UH, I THINK WE HAVE 4, 5, 5, 5 REPORTS THAT WE'RE GOING TO BRING BEFORE YOU THIS EVENING.
AND, UH, AT THIS POINT I'LL OVER OVER TO OUR, UH, DIRECTOR, UH, JUDGE JOHNSON.
I WAS TOLD I HAVE 15 SECONDS MORE SMILES.
TAP SPIN ON TABLE AND BE CAREFUL IN SITTING THIS CHAIR
UM, THANK YOU SO MUCH FOR HAVING ME.
AS THE CHAIR INDICATED, WE, WE MET ON JUNE 16TH AND DISCUSSED THREE DIFFERENT AUDIT REPORTS AND WENT OVER TWO AUDIT FOLLOW UP REPORTS AS WELL.
UH, THE FIRST ITEM THAT WE COVERED WAS THE ENGINEERING FEE ASSESSMENT AND COLLECTIONS AUDIT.
UH, AS YOU'RE AWARE, OUR ENGINEERING DEPARTMENT, UM, THEY, THEY COORDINATES PUBLIC WORKS, PROJECT DEVELOPMENT REVIEWS AND RIGHT OF WAY OVERSIGHT, FLOOD PREVENTION EFFORTS, MAINTENANCE OF OFFICIAL CONSTRUCTION RECORDS.
SO OUR GOAL WAS TO ENSURE THAT THE DEVELOPMENT FEES, THEY 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'RE AWARE, UH, THE LAKE BERT PARTIAL SUBLEASES, ARE THEY BEING MONITORED IN ACCORDANCE WITH THE AGREEMENTS WITH CITY OF DALLAS AND ALSO SUB DISEASE TEXT WORK SESSION? UH, FROM A POSITIVE OBSERVATION, OUR ENGINEERING DEPARTMENT HAS DONE AN EXCELLENT JOB IN DEVELOPMENT REVIEW AND ASSESSING INSPECTION FEE.
UH, THEY ASSESS THOSE ACCURATELY AND TIMELY.
[02:50:01]
REVIEW TEAM, UH, WAS VERY COMPREHENSIVE AND, AND THEY KNEW EXACTLY WHAT THEY WERE WORKING ON.THEY RETAINED SUPPORTING DOCUMENTATION.
UM, WHERE WE FOUND OPPORTUNITIES FOR IMPROVEMENT IS WHERE RIGHT OF WAY CONTRACT REGISTRATION PROGRAM, AS YOU'RE AWARE, UH, IN ORDER FOR YOU TO WORK ON, ON THE CITIES RIGHT AWAY, UH, THE CONTRACTORS ARE SUPPOSED TO REGISTER WITH THE CITY AND IT'S A $400 FEE.
UH, THEY HAVE TO PAY THE CITY, AND THAT IS GOOD FOR 12 MONTHS.
UH, DURING OUR AUDIT, WE IDENTIFIED THAT NUMBER ONE, NOT ALL RIGHT OF AWAY PERMITS ARE RETAINED AND, AND TRACKED IN OUR SYSTEM.
SECONDLY, UH, WE DID FIND, UM, THAT SOME OF THOSE CONTRACTORS SUBCONTRACTORS DID NOT REGISTER.
UH, THEY DID REGISTER WITH THE CITY, BUT WE DID NOT ASSESS FEES.
UM, UH, FROM A SAMPLE PERSPECTIVE, WE LOOKED AT ABOUT 175 PERMITS, APPROXIMATELY $11,000 IN CONTRACT REGISTRATION FEE WAS NOT ASSESSED.
AND IN ADDITION TO THAT, WE ALSO FOUND AREAS WHERE WE CAN IMPROVE ON RETAINING INSURANCE DOCUMENTATION, CONTRACTOR DOC, UH, CONTACT INFORMATION.
UH, WE ALSO, UH, PUT HOLES ON CONTRACTORS IF, IF THEY VIOLATE THE CITY'S POLICIES AND REGULATIONS.
UH, UNFORTUNATELY WE DID NOT HAVE A FORMAL PROCESS OF TRACKING THOSE CONTRACTORS TEXT WORK SESSION.
SO, UM, THE, SO WE MADE RECOMMENDATIONS AND MANAGEMENT CONCURRED.
UM, THEY ARE IN THE PROCESS OF MOVING TO A NEW SYSTEM.
THE CURRENT SYSTEM LIMITATION PREVENTED FROM PREVENTED THEM FROM TRACKING, UH, THESE CONTRACTS EFFICIENTLY AND EFFECTIVELY.
SO, UH, THEY'RE IN THE PROCESS OF, UH, IMPLEMENTING THAT SYSTEM, WHICH MIGHT TAKE A LITTLE BIT OF TIME, BUT ONCE THOSE ARE IMPLEMENTED, A LOT OF THESE ISSUES WILL BE, UH, WILL BE TAKEN CARE OF ON OBJECTIVE B FROM A LAKE SITE PARCEL SUBLEASE PROGRAM.
UM, WE ARE, UH, THERE ARE 99 PARCELS THAT ARE ELIGIBLE FOR SUBLEASES AT THIS POINT.
32 OF FROM ARE LEASE SUBLEASE, UH, TO PROPERTY OWNERS.
UM, THE CURRENT FEES THAT WE ASSESS, UH, SO IF YOU WANNA BE IN THAT PROGRAM, YOU HAVE TO PAY A $750 INITIAL FEE, THEN ALL YOU PAY IS A $50 ANNUAL FEE THAT THESE FEES HAVE NOT BEEN, UM, REEVALUATED SINCE 2010.
UM, UH, WE KNOW OUR ADMINISTRATIVE COSTS HAVE GONE UP, SO ONE RECOMMENDATION WAS US TO, UH, REEVALUATE THAT.
SECONDLY, TEXT JULY 6TH, 2026.
THERE IS A REQUIREMENT IN OUR LEASE TODAY FOR PROPERTY OWNERS TO MAINTAIN A COMMERCIAL PUBLIC LIABILITY INSURANCE, UH, MINIMUM OF $500,000, UH, PER OCCURRENCE FOR BOLY INJURY AND PROPERTY DAMAGE AFTER SPEAKING WITH THE CITY MANAGER.
UM, THIS, WE MAY NOT NEED TO REQUIRE THOSE.
UH, AND WHEN WE, WHEN WE EVALUATED THESE INSURANCES THAT PEOPLE HAVE SUBMITTED, NO ONE HAS REALLY PROVIDED THAT OR WERE, WERE ABLE TO AFFORD THAT.
THIS IS A COMMERCIAL LIABILITY AND THE CITY MANAGER DID NOT THINK IT'S APPROPRIATE FOR US TO, UH, REQUIRE THAT.
SO OUR RECOMMENDATION WAS TO REEVALUATE AND RECONSIDER THAT REQUIREMENT.
UM, OVERALL, UM, THE AUDIT, UH, ONCE AGAIN, UM, SHOWED A 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.
UH, I'LL, I'LL GO QUICKLY, MAYOR, IF THAT'S OKAY WITH YOU.
HAVE ANY QUESTIONS? YEAH, 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 BORN PROGRAM, UM, WE INITIATED THIS MODERNIZATION, UH, OF TRAFFIC SIGNALS.
WE HAVE 203 SIGNALIZING INTERSECTIONS WITHIN GARLAND.
AS OF RIGHT NOW, THE DEPARTMENT HAS TEXT WORK SESSION MODERNIZED 125 OF 'EM, SO THAT'S MORE THAN HALF OF 'EM.
UM, SO THEY ARE DOING A GREAT JOB.
AGAIN, WE WANTED TO MAKE SURE THAT ARE THEY, UM, EFFECTIVELY MONITORED? ARE THEY PROGRESSING AS PLANNED? AS I SAID, YES, THEY ARE PROGRESSING AS PLANNED.
UM, SECONDLY, WE WANTED TO SEE IF, SINCE WE ARE USING A CONTRACTOR, IS THE CONTRACTOR IN COMPLIANCE WITH THE BILLING ACCURACY AND OTHER REQUIREMENTS.
UM, ALSO HAPPY TO REPORT THAT YES, WE HAVE A VERY GOOD MONITORING IN PLACE, UH, 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 TECH START.
FOR EXAMPLE, UH, WE HAVE CERTAIN AGREEMENTS WITH THEM, APPROXIMATELY $625,000.
TECHSTAR AGREED TO PROVIDE TO US MAINLY FOR, UH, 6 35
[02:55:02]
RENOVATION.AND, UM, THEY HAVE BEEN BILLING, UH, TIMELY AND WE HAVE RECEIVED PORTION OF THAT.
I BELIEVE WE HAVE RECEIVED ALMOST HALF OF THAT AMOUNT SO FAR.
UH, AND UH, ONCE THE 6 34 WORK IS DONE, I BELIEVE WE'LL, WE'LL COLLECT THE REST OF 'EM 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 WANNA, UH, INFORM YOU THAT OUR AUDIT REVEAL 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, UH, WE HAVE CONTROLLED ACCESS HIGHWAYS AS WELL AS NON-CONTROLLED ACCESS HIGHWAYS WITHIN THE CITY, SUCH AS HIGHWAY 78 AND 66.
UH, FOR CONTROLLED ACCESS HIGHWAYS, WE DO RECEIVE REIMBURSEMENT FROM TECHSTAR FOR MAINTENANCE FOR NON-CONTROLLED ACCESS HIGHWAYS.
CURRENTLY, WE DO NOT RECEIVE, UM, UM, THOSE, WE ARE RESPONSIBLE TO MAINTAIN THOSE INTERSECTIONS, BUT, UH, OUR AGREEMENT WITH TECHSTARS ALLOW US TO, UH, 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 UP TO US TO OBTAIN ADDITIONAL FUNDING.
EACH OF THESE INTERSECTION COSTS APPROXIMATELY A HUNDRED THOUSAND DOLLARS, SO IF WE CAN GET SOME FUNDING FROM THE FEDERAL PROGRAM, THAT WOULD BE HELPFUL, UH, 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? PROSPECTIVE, 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, UH, ACCESS, RIGHT, UH, ACCESS ACCOUNTS.
LASTLY, CONTRACTOR PERFORMED EQUIPMENT REPLACEMENT WERE NOT CONSISTENTLY ENTERED INTO THE CITIES OF OUR QUARTER SYSTEM.
THEY, THEY WILL BE ADDING THOSE ON MOVING FORWARD.
SO HIGH LEVEL, THAT WAS THE THIRD, SECOND AUDIT.
THIRDLY, WE, WE LOOKED AT THE GALL 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.
UH, FOR THE PAST TWO YEARS, UM, 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, UM, WE, AS A CITY OPERATION, WE WANNA MAKE SURE THAT IF 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 AGREE TO, UH, ENHANCE THAT.
UM, POS SYSTEM, PERMISSION WISE, CURRENT SYSTEM ALLOWS A NUMBER OF PEOPLE TO HAVE ACCESS TO ADJUST THE RATES, ADJUST THE COUNTS WITHIN THE SYSTEM, BUT THEY'RE ALSO LOOKING INTO MOVE TO A NEW POS SYSTEM.
ONCE THAT SYSTEM IS IMPLEMENTED, THOSE UH, ACCESS WILL BE SEGREGATED.
THE MAN SITS AT A TABLE SPEAKING INTO A MICROPHONE, 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.
TRACKING WISE, AS YOU'RE AWARE THEY HAVE, THEY DO HAVE A LOT LARGE NUMBER OF PROMOTIONAL INVENTORY ITEMS. UM, THEY'LL GOING FORWARD, THEY'LL BE ENHANCING TRACKING OF THAT.
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, UH, STATUS UPDATE ON THAT ONE.
AT THAT TIME WHEN WE DID THE AUDIT, THERE WERE 12 AREAS OF IMPROVEMENTS THAT WE IDENTIFIED, UH, THOSE AREAS WHERE, UM, YOU KNOW, WE, WE DO SERVE THESE OTHER CITIES SUCH AS RICHARDSON WILDLIFE, SAXY, SUNNYVALE, DALLAS COUNTY, MUD NUMBER FOUR.
UM, THERE ARE CERTAIN AREAS WE DID NOT HAVE METERS.
UM, SO WE WANTED TO MAKE SURE THAT WE ARE BILLING ACCURATELY BASED ON, UM, UH, THE, THE FLOW, THE INFLOW.
SO, UH, HAPPY TO REPORT THAT SINCE THAT AUDIT, UM, CRYSTAL ACTUALLY DID THIS PRESENTATION.
BUT SINCE THAT AUDIT, UM, RICHARDSON, WE HAVE ADDED THREE METERS,
[03:00:01]
UH, AT THE POINT OF ENTRY WITH RICHARDSON.SO WE, WE CAN MEASURE THE INFLOW TO THE CITY.
UM, IN OUR SYSTEM ITSELF, WE WERE, YOU KNOW, PER THE CONTRACT, WE WE COULD ADD LATE PAYMENT PENALTIES IF OUR CUSTOMER CITIES ARE NOT PAYING, UM, LARGE AMOUNT OF MONEY TO THE CITY.
DURING THE TIME OF THE AUDIT, WE IDENTIFIED THAT TOTAL IF WE WOULD'VE 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 FOR EXAMPLE, IF DALLAS MAKES A LATE PAYMENT RIGHT NOW, THEY, WE WILL ASSESS A LATE PAYMENT PENALTY.
SECONDLY, UM, THIRDLY, WE WANTED TO IMPROVE OUR STRENGTH SAMPLING, UM, PROCESS, UM, BOD, BIOCHEMICAL OXYGEN DEMAND AND TOTAL SUSPENDED SOLID, UH, PER OUR CONTRACT.
UH, IF THAT EXCEEDS 250 MILLIGRAM PER LITER, WE CAN ASSESS SURCHARGES.
UM, SO WE WERE NOT DOING THAT.
THAT'S BECAUSE OF SOME THE MAN GESTURES, PEN AND HAND, SOME DISCREPANCIES BETWEEN THE LANGUAGE IN THE CONTRACT AS WELL AS THE ORDINANCE.
BUT CURRENTLY, UH, MANAGEMENT IS WORKING WITH A CONSULTANT TO, UM, TO, TO, TO RESOLVE THAT PROBLEM.
SO GOING FORWARD THAT WILL BE TAKEN CARE OF ALSO, UH, WE HAVE MADE RECOMMENDATIONS TO STRENGTHEN INFLOW AND IN REFRESH AND REPORTING REQUIREMENTS.
UM, AGAIN, SOME OF THESE ITEMS, UM, MANAGEMENT WILL HAVE TO, UH, YOU KNOW, SOME OF THESE CONTRACTS 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, UH, WITH OTHER CUSTOMER CITIES.
OUR CONTRACTS CURRENTLY, UH, IT WAS EXECUTED IN 2017.
UH, SO WE'LL HAVE TO WAIT A LITTLE LONGER.
UM, WITH THOSE CONTRACTS OVERALL, I DON'T WANT TO GO THROUGH EACH AND EVERY ONE OF THIS, BUT I DO WANNA GIVE KUDOS TO OUR WATER DEPARTMENT.
THEY HAVE COMPLETED, UM, SEVEN OPPORTUNITIES FOR IMPROVEMENT AREAS, 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, WE RECOMMENDED, SO KURO TO THEM.
LASTLY, UM, FIRED EMS CONTROL SUBSTANCE AUDIT ISSUED THAT REPORT LAST YEAR IN SEPTEMBER, 2025.
UM, WE MAINLY LOOKED OVER TO SEE CONTROLS OVER ACQUISITION, DISTRIBUTION, TRANSFER INTERVENTION, DISPOSITION AND PAYMENT PROCESS OF CONTROL SUBSTANCES.
MANY OF OUR APPARATUS, UM, HAVE CONTROL SUBSTANCES AND WE HAVE, UM, 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, UM, WE DID IDENTIFY SIX AREAS FOR IMPROVEMENT AND MADE 22 RECOMMENDATIONS, UM, MAINLY TO STRENGTHEN ACCESS AND ADMINISTRATIVE CONTROLS, UH, ADMINISTRATION OF INVENTORY, REDUCE DUPLICATE ENTRY, FIND SOME EFFICIENCY BECAUSE THEY DO WORK WITH A NUMBER OF DIFF THREE DIFFERENT SYSTEMS. SO WE WANTED TO SEE IF SOME OF THOSE SYSTEMS CAN BE, UM, CAN, CAN BE INTERFACED, UH, TO ELIMINATE DATA ENTRY ERROR BECAUSE YOU HAVE TO MAINTAIN AN ACCURATE RECORD OF, UM, THESE CONTROL SUBSTANCE APPLICATIONS.
ALSO, WE FOUND AREAS OF DIS OR DISPOSITION AND DESTRUCTION.
UM, YOU KNOW, SOME OF THOSE EXPIRED DRUGS WERE RETAINED AND THEY WERE NOT RETAINED IN A PROTECTED AREA AT THE TIME, AND WE DID THE AUDIT ALSO.
WE WANTED THEM TO ENHANCE THEIR POLICIES AND PROCEDURES.
HAPPY TO REPORT THAT, UH, FROM A, UH, ADMINISTRATION AND INVENTORY PERSPECTIVE, THE FIRE DEPARTMENT IMPLEMENTED OPERATIVE IQ FOR NARCOTIC TRACKING, ESTABLISHED RECONCILIATION PROCESS BETWEEN SYSTEMS, DEVELOP AUTOMATED REPORTING TO IDENTIFY DISCREPANCIES AND RED FLAGS.
FROM A DISPO DISPOSAL PERSPECTIVE, THEY HAVE COMPLETED DEA FORM 2 22 AND DESTROYED THE BACKLOG OF EXPIRED MEDICATION AFTER THE AUDIT.
THEY ALSO HAVE SEGREGATED DUTIES, UM, BETWEEN MA AND SUITED TABLE PAPER, MED WALT ACCESS FOR BETWEEN NON-RESPONDING PERSONAL, IMPLEMENTED DAILY INVENTORY RECONCILIATION, AND THEN HAS 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 AN IMPLEMENTED OPERATIVE IQS OR CODING TRACKING FUNCTIONALITY, AND THEY'RE TRACKING EACH ONE OF THOSE FILES SEPARATELY.
SO WE HAVE A TRACKING FROM CRADLE TO GRAVE.
[03:05:01]
PROGRESS HAVE BEEN MADE CURRENTLY.UM, THEY'RE STILL DEVELOPING, FINALIZING THEIR POLICIES AND PROCEDURES.
THEY STILL DO HAVE, UM, A LITTLE BIT OF EXPIRED CONTROL SUBSTANCES, WHICH THEY'RE WORKING ON DISPOSING.
UM, ALSO THEY'RE ENHANCING CONTINU 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? GOOD? ANY QUESTIONS? COUNSEL TEXT DYLAN HEDRICK, MAYOR, UH, MAYOR PRO, TIM, OT.
UM, THOSE WERE SIGNIFICANT AUDITS TO SIT THROUGH.
THEY WERE VERY DETAILED AND I THANK YOU AND YOUR STAFF PRESENTING THEM.
UM, 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 IN WHAT THEY PRESENTED TO US.
GARLAND SEALE FLAGS BEHIND THEM.
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 AND THAT YOU UNDERSTAND THAT WHEN THESE COME TO YOU, CANBERRA SHOWS NEW PEOPLE.
THERE ARE, AS YOU HEARD A COUPLE OF TIMES THERE, THERE WERE FINANCIAL RESPONSIBILITIES, OBLIGATION THAT WE COULD HAVE, UH, TAKEN ACTION ON AND SO ON AND SO FORTH.
UH, BUT AT THE SAME TIME, WE TAKE A LOT OF OUR DIRECTION FROM, UH, THE AUDIT COMMITTEE INTO THE DIRECTION ABOUT 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? YEAH, SO ALL OF THESE REPORTS, UH, ARE NUMBER ONE, ALL ORDER REPORTS ARE POSTED ONLINE, UNLESS IF IT'S A, UM, 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 CD'S WEBSITE.
AND FOR COUNCIL MEMBERS, THESE ARE POSTED BEFORE THE AUDIT COMMITTEE IN, IN, IN YOUR AUDIT COMMITTEE BOX ACCOUNT, AS WELL AS YOUR TEAM'S FOLDER.
AND RIGHT AFTER THE AUDIT COMMITTEE, I KNOW I USUALLY SEND AN EMAIL WITH, WITH A COPY OF THESE REPORTS AS WELL.
AND I DO MEET WITH, UH, JED ON A REGULAR BASIS, USUALLY BEFORE WE HAVE MEETINGS.
BY THE WAY, WE DO HAVE A MEETING TOMORROW.
BUT I MEET WITH HIM AND, UH, WE DISCUSS ALL OF THESE, UH, UH, DOCUMENTS.
I THINK IT, AGAIN, I THINK IT VERY IMPORTANT THAT AS WE CONDUCT AN AUDIT, THE INITIAL AUDITS NORMALLY ARE SITUATIONS WHERE, UH, 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.
IT'S 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, UH, 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.
UH, WE HAVE OUR MEETINGS, THEY'RE POSTED.
WE ENCOURAGE YOU TO COME AND BE WITH US.
MOST OF THESE REPORTS, HE'LL EITHER COME FROM, UH, THE, UH, AUDIT DIRECTOR AND HIS STAFF, OR 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.
WITH THAT, I DO WANT TO SAY AGAIN, TO JED AND TO HIS STAFF, THANK YOU FOR THE WORK THAT YOU DO.
TEXT JUSTIN CARAWAY DISTRICT TWO.
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, BUT 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 AND WE HAVE CATCHING PROBLEMS. AND THAT'S WHAT WE RELY ON AS IT RELATES TO OUR AUDIT DEPARTMENT.
THANK YOU SO VERY MUCH FOR THE WORK THAT YOU DO, AND YOU'RE THE STAFF.
OKAY, MAYOR, IF I MAY SAY ONE WORD, I FORGOT TO THANK FIRE CHIEF AND HIS STAFF FOR WORKING ON IMPLEMENTING THOSE CONTROLS.
SO I DO WANNA, UH, YOU KNOW, LET THEM KNOW.
ALSO, I WANNA, I WANNA MENTION ONE THING.
MIKE AND HIS TEAM, UM, LEADERSHIP MATTERS.
AND YOU KNOW, WHEN, WHEN YOU THINK ABOUT THE, THE TONE AT THE TOP, THE MAN LOOKS RIGHT AND SMILES, YOU KNOW, THE, THE CORPORATION THAT WE RECEIVE DURING THE AUDIT, UH, IT, IT COMES FROM THE TOP.
SO I REALLY DO APPRECIATE MIKE AND HIS LEADERSHIP TEAM.
[03:10:01]
LIKE WE WORK TOGETHER, UH, TO SERVE THE CITY, UM, BETTER.AND, AND THAT'S, THAT'S THE ONLY INTENT, UH, FROM AN AUDIT PERSPECTIVE.
WE'RE NOT HERE TO, UM, FIND FALLS TO, TO PUT IT IN THE REPORT.
THIS IS ALL ABOUT ENHANCING OPERATIONS AT THE SAME TIME, UNDERSTANDING WE DO HAVE LIMITS, UH, RESOURCE LIMITS.
UM, BUT ALL CONSIDERING ALL OF THAT, YOU KNOW, WHAT CAN WE DO THE BEST, ESPECIALLY GOING FORWARD, YOU'LL SEE, UM, UH, AFTER THE ADOPTION OF THE STRATEGIC PLAN, UM, YOU KNOW, WE'RE GONNA FOCUS ON SOME OF THOSE AREAS AS WELL.
HOW WE CAN WORK TOGETHER TO ENHANCE AND SERVE THE CITY BETTER.
SO I DO WANNA, I DO WANNA MENTION THAT I REALLY DO APPRECIATE MIKE FOR HIS SUPPORT.
AND I MUST COMMAND YOUR TEAM AS WELL FOR THEIR THOROUGHNESS AND ALWAYS, LIKE YOU SAID, TEXT MICHAEL J BETTS TRYING TO IMPROVE GARLAND AS MUCH AS POSSIBLE THROUGH THESE AUDITS.
AND APPRECIATE YOU AND YOUR TEAM.
OUR NEXT ITEM ON OUR AGENDA IS TRAVEL EXPENSES RELATED TO COUNCIL MEMBER MOORE'S ATTENDANCE AT THE 2026 INFRASTRUCTURE SUMMIT COUNCIL MEMBER MOORE, MR. MAYOR, UH, SERVING ON THE REGIONAL TRANSPORTATION COMMISSION, RTC AS WELL AS DRMC, UH, HAS HELPED US TREMENDOUSLY IN THE WAY OF UNDERSTANDING WHAT'S HAPPENING IN THIS REGION.
AND THIS IS ONE OF THOSE MEETINGS THAT WILL CERTAINLY HELP US AS IT RELATES TO, UH, THE DIFFERENT TRANSPORTATION, UH, METHODOLOGIES THAT ARE TAKING PLACE.
AND I THINK THAT IT'S SOMETHING THAT, UH, IF 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 GU U SHAPED TABLE.
PEOPLE SEATED? ALRIGHT, ANY QUESTIONS TO COUNCIL MEMBER MOORE ABOUT HIS TRAVEL? I SEE NONE THEN.
COUNSEL, I ASK FOR A CONSENSUS RELATED TO HIS, UH, 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.
NEXT 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 THEN ITEM NUMBER 15 IS OUR GARLAND YOUTH COUNCIL APPOINTMENTS MAYOR PRO TEM, I ASK THAT YOU WOULD MAKE MY NOMINEES FOR ME.
CITY MANAGER LOOKS AT HIS MONITOR, MAYOR LOOKS AT HIM AND SMILES RIGHT NOW.
TEXT OT DISTRICT FIVE, JOE THOMAS, JR.
DISTRICT SEVEN, CARISSA DUTTON, DISTRICT EIGHT, MARGARET LUT, DISTRICT SIX
OUR, OUR NEW, OUR NEW MAR MAYOR PROIN.
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.
ALRIGHT, COUNSEL, DO WE HAVE ANY, UH, FUTURE AGENDA ITEMS TO ANNOUNCE? MM-HMM.
WE'LL START WITH DEPUTY MAYOR PRO TIM DUTTON.
UM, I WOULD LIKE STAFF TO LOOK AT DEVELOPING AN ANNUAL INTERGOVERNMENTAL RELATIONS, UM, CALENDAR WHERE WE CAN HAVE OUR DIFFERENT, UM, KEY PARTNERSHIP.
DUTTON SPEAKS IN GESTURES, ENTITIES LIKE DART, UM, THE WATER DISTRICT, UM, OUR COMMISSIONER, UM, COME ON A AM ANNUAL BASIS AND JUST KIND OF GIVE US AN UPDATE ON WHAT THEY'RE WORKING ON, UM, PROJECTS, UM, JUST SO WE CAN REALLY TRY TO WORK ON WORK BUILDING THOSE RELATIONSHIPS WITH EACH OF THOSE ENTITIES, UM, AS A WHOLE INSTEAD OF KIND OF BEING OUTSIDERS.
LET'S PUT THAT ONE DOWN THERE.
ALRIGHT, ANY OTHER? THAT'S IT.
COUNCIL MEMBER THOMAS COUNSEL, I WANT TO REFER THIS ITEM TO THE TIM COMMITTEE, UH, TRAFFIC STUDY ON THE SOON TO BE FINISHED KALEO ROAD AND SEVERAL PEOPLE ASKING ME ABOUT IT.
ARE WE GONNA PUT A FOUR-WAY STOP HERE? HERE THAT'S GONNA BE A HIGH SPEED HIGHWAY NOW THAT IT'S REDONE.
AND SO, UM, IS IT APPROPRIATE FOR ME TO ASK FOR THAT FOR A ROAD THAT DOESN'T REALLY EXIST YET? OR WE CAN CERTAINLY HAVE, UH, IT WOULD BE A FUTURE AGENDA LATE IN THE FALL.
WE CAN HAVE OUR TRANSPORTATION DIRECTOR TAKE A LOOK AT THAT AND POSSIBLY GIVE A PRESENTATION IN THE FUTURE.
OR TO THE TIMS COMMITTEE FIRST.
AND I COUNCIL, SO HAVE A SECOND BY COUNCIL MEMBER LUCK WOMAN.
I HAVE ONE ON, UH, LET'S SEE, RANGE DRIVE BETWEEN FIRST STREET AND NORTH FOURTH STREET.
IT'S A NARROW INDUSTRIAL CORRIDOR WITH AUTOBODY SHOPS, REPAIR SHOPS AND RECYCLING CENTERS.
AND THERE IS VEHICLE PARKING CONTINUOUSLY
[03:15:01]
ON THAT ROAD.WE HAVE SOME DEVELOPMENT THAT IS COMING BEFORE US TOMORROW.
I'D LIKE FOR US TO, FOR THE TRANSPORTATION MOBILITY COMMITTEE TO LOOK AT, UM, EVALUATING OPTIONS RANGING FROM NO PARKING SIGNAGE TO NO OVERNIGHT PARKING RESTRICTIONS.
SECOND BY COUNCIL MEMBER LUCK.
UH, FILM AND TELEVISION PRODUCTION.
UH, I UNDERSTAND THAT GARLAND IS, UH, 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 TEXT DYLAN HEDRICK, MAYOR.
AND THIRD AND LAST, UH, DEDICATED MAR MOTORCYCLE PARKING FOR DOWNTOWN GARLAND CITY SQUARE.
UM, WE AS, UH, 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 'EM, GET OFF THEIR MOTORCYCLES AND KEEP AN EYE ON THE MOTORCYCLES.
AND MY SUGGESTION IS THAT WE LOOK AT THE TREE AREA ACROSS FIFTH STREET, UH, UH, 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.
MARGARET LUCK RAISE HIS FINGER.
AND SECOND BY COUNCIL MEMBER LUCK.
I'VE HAD THIS CONVERSATION WITH UH, OUR CITY MANAGER AND HE ASSURED ME THAT UH, WE'LL DO HAVE AN OPPORTUNITY TO TAKE A LOOK AT IT, UH, PROBABLY IN AUGUST, SOMEWHERE IN THAT AREA.
BUT WE REALLY DO NEED TO TAKE A SERIOUS LOOK AT, UH, THE TRASH BUILDUP, DEBRIS 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, UH, PEOPLE ASKING WHO'S RESPONSIBLE FOR IT.
AND AS YOU, 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 UH, WHO IS RESPONSIBLE, ARE WE, AND IF WE ARE RESPONSIBLE FOR WHAT OUR RESPONSIBILITIES ARE.
IF THEY'RE NOT, THEN WE NEED TO SO STATE SUCH THAT 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'S A NEED FOR IT AND WE HAVE TO HAVE SOME TYPE OF LEGISLATION AS WE GO FORWARD.
ALRIGHT, SECOND BY COUNCIL MEMBER CARAWAY.
ANYTHING ELSE SIR? THAT'S IT, SIR.
MR. CITY MANAGER, YOU HAVE ALL THOSE? I DO.
ANYTHING ELSE? ANY OTHER FUTURE AGENDA ITEMS? ALRIGHT, THEN WE'LL MOVE ON TO EXECUTIVE SESSION.
CITY COUNCIL WILL RECESS FROM THE OPEN SESSION AND CONVENE IN A CLOSED EXECUTIVE SESSION PURSUANT TO SECTIONS 5 5 1 0 7 1 5 5 1 0 8 6 AND 5 5 2 0.133 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, 5 5 1 0 8 6 AND 5 5 2 1 3 3 AN ATTORNEY CLIENT COMMUNICATION RELATED TO THE SAME.
IT IS 9 33 AND WE ARE ADJOURNED.