[1. CALL TO ORDER] [00:00:08] GOOD EVENING EVERYONE. THE TIME NOW IS 6:00 PM. MY NAME IS MAYOR PRO TEM LETICIA HUGHES. OUR MAYOR IS IN ROUTE AND WE DO WANT TO GO AHEAD AND GET THIS MEETING STARTED. SO WELCOME. AND WE WILL START BY ASKING OUR CITY SECRETARY FOR A ROLL CALL. MAYOR RACHEL PROCTOR IS IN ROUTE. MAYOR PRO TEM LETICIA HUGHES HERE. COUNCIL MEMBER. PARKER. HERE. COUNCIL MEMBER NICOLE RAPHAEL. HERE. COUNCIL MEMBER ANDRE. BYRD. HERE. COUNCIL MEMBER DIANA MARKS. HERE. COUNCIL MEMBER. CRISTAL. CHISHOLM. HERE. THANK YOU. THANK YOU. WE WILL ASK CITY SECRETARY [a. Presentation of proclamation honoring GIS Day] FOR OUR FIRST ITEM ON THE AGENDA. YES, MA'AM. FIRST, WE HAVE PRESENTATION OF PROCLAMATION HONORING GIS DAY. MAKING THAT PRESENTATION IS COUNCIL MEMBER PARKER RECEIVING AS TOM FIEGERT IT DIRECTOR. GOOD EVENING. DESOTO. GOOD EVENING. IT'S GREAT TO SEE YOU ALL OUT HERE TONIGHT. THIS IS AN EXCITING TIME FOR IT. AND THAT'S INFORMATION TECHNOLOGY, JUST IN CASE YOU DIDN'T KNOW. ALL RIGHT. MY NAME IS PARKER. I AM COUNCIL MEMBER FOR PLACE TWO, AND I AM EXCITED ABOUT IT. THIS IS DEFINITELY IN MY BAILIWICK, SO I'D LOVE TO GIVE THIS OVER TO YOU, TOM. ALL RIGHT. WHEREAS THE PROCLAMATION SAYS WHEREAS GEOGRAPHIC INFORMATION SYSTEMS, WHICH IS GIS, INTEGRATES HARDWARE, SOFTWARE AND DATA FOR CAPTURING, MANAGING AND ANALYZING AND DISPLAYING ALL FORMS OF GEOGRAPHICALLY REFERENCED INFORMATION, GEOGRAPHIC INFORMATION SYSTEMS CONNECT PEOPLE, REGIONS AND DATA SYSTEMS. WHEREAS IN 2024 WE CELEBRATE 25 YEARS OF NATIONAL GIS DAY AND THIS YEAR'S THEME SHOWCASES HOW GEOGRAPHIC INFORMATION TECHNOLOGY HAS TRANSFORMED OUR PERCEPTION, NAVIGATION AND UNDERSTANDING OF THE WORLD. IT EMPHASIZES HOW BLENDING HUMAN CREATIVITY WITH TECHNOLOGY REVEALS HIDDEN TRENDS, FOSTERS SUSTAINABLE GROWTH, AND EMPOWERS SMARTER DECISION MAKING THROUGH THE POWER OF LOCATOR DATA. AND WHEREAS, THE CITY OF DESOTO RECOGNIZES THAT AN UNDERSTANDING, USE, AND APPLICATION OF GEOSPATIAL TECHNOLOGY IS CRUCIAL TO THE OPERATING OF INFRASTRUCTURE, SUSTAINING OUR NATURAL RESOURCES AND STIMULATING ECONOMIC GROWTH, THUS BENEFITING THE WELFARE WELFARE OF THE GENERAL PUBLIC AND THROUGHOUT THE REGION. AND WHEREAS, HAVING A DEDICATED DAY FOR GIS ACTIVITIES FOR STUDENTS, CITIZENS AND GOVERNMENT LEADERS DEMONSTRATES THE BENEFITS OF GIS IN THE UNIQUE AND CONCENTRATED AND CONCENTRATED WAY. WHEREAS THE CITY OF DESOTO IS COMMITTED TO UTILIZING GIS TO INFORM DECISION MAKING AND BETTER SERVE ITS RESIDENTS AND MAKE USEFUL GEOGRAPHIC INFORMATION OPEN AND EASY, EASILY AVAILABLE TO THE PUBLIC AS A PLATFORM FOR INNOVATION. NOW THEREFORE, I, RACHEL L PROCTOR BY THE POWER VESTED IN ME AS MAYOR OF THE CITY OF DESOTO, DALLAS, TEXAS, DO HEREBY PROCLAIM NOVEMBER 20TH. THAT'S WEDNESDAY, NOVEMBER 20TH, 2024. NATIONAL GIS DAY IN THE CITY OF DESOTO AND URGE ALL CITIZENS TO JOIN IN IN THIS SPECIAL OBSERVANCE OBSERVANCE IN WITNESS THEREOF. I HAVE SET MY HAND AND CAUSE THE SEAL OF THE CITY OF DESOTO TO BE AFFIXED. THE 18TH DAY OF NOVEMBER 20TH, 24, RACHEL L PARKER ATTEST ALICIA THOMAS, CITY SECRETARY TOM. AND JUST IN CASE PEOPLE DIDN'T KNOW THAT ALL OF THE MAPS THAT ARE ON THE CITY'S WEBSITE, THEY'RE INTERACTIVE. AND THAT'S WHERE THAT GIS IS SHOWING ITS TRUE FORM. AND IT MAKES IT AVAILABLE FOR EVERYBODY IN THE CITY OF DESOTO AND ANYONE WHO WANTS TO COME TO DESOTO TO KNOW MORE ABOUT DESOTO. SO I THANK THEM FOR ALL THE WORK THAT THEY'VE DONE AND ARE DOING TO MAKE CERTAIN THAT THE CITY OF DESOTO IS SETTING ITSELF APART FROM A TECHNOLOGY PERSPECTIVE. THANK YOU. THANK YOU. DO YOU WANT TO SAY. I'LL JUST TAKE A SECOND. I WANTED TO JUST COMMENT ON THE TREMENDOUS JOB THAT OUR GIS MANAGER, JERRY HICKLIN, HAS MADE TO OUR ORGANIZATION BEYOND JUST LAYING A REALLY GROUNDED FOUNDATION FOR THE GIS PLATFORM IN THE CITY. HE'S ACTED AS A MENTOR TO SOME OF OUR SISTER CITIES NEARBY AND REALLY IS A PIONEER OF OUR GIS PROJECT HERE. SO JUST A REAL QUICK HAND FOR JERRY HICKLIN. AND THANK YOU ALL VERY MUCH FOR YOUR TIME. I'M TRYING ONE, TWO, THREE. ALL [00:05:12] RIGHT. THANK YOU. THANK YOU, COUNCIL MEMBER PARKER, FOR THAT PRESENTATION. AND THANK YOU, MR. [b. Presentation of proclamation honoring National Entrepreneurship Month] PARKER, FOR RECEIVING THAT. AT THIS TIME, MISS THOMAS WILL HAVE OUR NEXT ITEM ON OUR AGENDA. YES, MA'AM. NEXT, WE HAVE PRESENTATION OF PROCLAMATION HONORING NATIONAL ENTREPRENEURSHIP MONTH, MAKING THAT PRESENTATION IS COUNCIL MEMBER ANDRE BYRD. RECEIVING IS MATT CARLSON, EDC DIRECTOR. TO OUR HONORABLE MAYOR. TO OUR GREAT COUNCIL AND TO YOU, OUR CITIZENS OF DESOTO, AS WE CELEBRATE THE ADVANCEMENT OF MAIN STREET BEFORE WE GET TO WALL STREET, WE ARE HERE TO HONOR THE GREAT ENTREPRENEURS OF OUR CITY. WHEREAS ENTREPRENEURSHIP IS THE IS THE SKILL OF CREATING, STARTING AND MANAGING A NEW BUSINESS WHILE CAREFULLY CONSIDERING THE ASSOCIATED RISK AND AIMING FOR PROFITABILITY. THE EARLIEST ENTREPRENEURS WERE TRADERS AND MERCHANTS WHO EXCHANGED GOODS FOR GOODS, AND WHEREAS THE EARLY ENTREPRENEURS BEGAN TO REALIZE THE PROFITABILITY OF INNOVATIONS WITH CIVILIZATION AND THE INVENTION OF MONEY, CAPITALISM BECAME MORE INGRAINED IN SOCIETIES, CREATING A STRONGER ENTREPRENEURSHIP ENVIRONMENT. AND WHEREAS TODAY, ENTREPRENEURSHIP INVOLVES THE DEVELOPMENT AND APPLICATION OF INNOVATION, INNOVATIVE TECHNOLOGY TO ADDRESS VARIOUS CHALLENGES, MODERN ADVANCED ADVANCEMENTS IN TECHNOLOGY HAVE LED TO A BROADER RANGE OF BUSINESS OWNERS, OFFERING CONSUMERS MORE DIVERSE OPTIONS FOR SHOPPING AND CONDUCTING BUSINESSES BUSINESS. AND WHEREA, IN 2011, PRESIDENT OBAMA DESIGNATED NOVEMBER AS NATIONAL ENTREPRENEURSHIP MONTH TO CELEBRATE THE ACCOMPLISHMENT OF ENTREPRENEURS AND INNOVATORS. AND WHEREAS SUCCESSFUL ENTREPRENEURS AND BUSINESS OWNERS HAVE TOUCHED NEARLY EVERY INDUSTRY AND KNOWS THE BUYING BEHAVIOR OF THEIR TARGET AUDIENCE DUE TO STUDIES THEY HAVE INVESTED IN MARKET, THEIR POTENTIAL CUSTOMERS. THEREFORE, I, RACHEL L PROCTOR. BY THE POWER VESTED IN ME AS MAYOR OF THE CITY OF DESOTO, TEXAS, DALLAS COUNTY, DO HEREBY PROCLAIM NOVEMBER AS NATIONAL ENTREPRENEURSHIP MONTH IN THE CITY OF DESOTO, AND WE URGE RESIDENTS TO ACTIVELY SUPPORT AND ENGAGE WITH LOCAL BUSINESSES, HELPING TO STRENGTHEN AND SUSTAIN THE VIBRANT DESOTO COMMUNITY. AND HER WITNESS, THEREFORE THEREOF. I HAVE SET I HAVE SET MY HAND AND CAUSED THE SEAL OF THE CITY OF DESOTO TO BE AFFIXED THIS 18TH DAY OF NOVEMBER 20TH, 20 FOR RACHEL L PROCTOR, MAYOR ATTEST ALICIA THOMAS CITY SECRETARY. THANK YOU COUNCILMAN. MUCH APPRECIATED. THANK YOU COUNCILMAN. THANK YOU MAYOR. THANK YOU. MEMBERS OF THE COUNCIL. THIS IS A REAL HONOR TO BE ABLE TO ACCEPT THIS ON BEHALF OF A NUMBER OF HARD WORKING PEOPLE IN OUR COMMUNITY, TRULY THE BACKBONE OF OUR COMMUNITY, SMALL BUSINESS ENTREPRENEURS, PEOPLE WHO HAVE THE ENTREPRENEURIAL SPIRIT, THE HEART, THE ENERGY, AND FRANKLY, THE COURAGE TO VENTURE OUT AND MAKE IT ON THEIR OWN. THEY SEE SOMETHING DIFFERENT THAN MOST OF US WHO GET UP AND GO TO A JOB EVERY DO. THEY DO. THEY SEE A VISION, THEY SEE A FUTURE THAT'S BASED ON THEIR HARD WORK. SO ON THEIR BEHALF, CERTAINLY NOT MINE. I GET THE PLEASURE OF WORKING WITH MANY OF THEM IN OUR IN OUR OFFICES, BUT ON THEIR BEHALF. THANK YOU VERY MUCH. I WANT TO GET A HECK OF A PICTURE. THANK YOU. THANK YOU. THANK YOU, [c. Presentation of Civic Academy Cohort 2024] COUNCILMAN BURTON. THANK YOU, MR. CARLTON. MISS THOMAS, AT THIS TIME, WE HAVE THE NEXT ITEM ON THE AGENDA, PLEASE. YES. NEXT, WE HAVE PRESENTATION OF THE CIVIC ACADEMY COHORT 2024. MAKING THAT PRESENTATION IS DOCTOR ESTHER WILLIAMS, COMMUNITY SERVICE AND EXTERNAL AFFAIRS DIRECTOR. GOOD EVENING EVERYONE. I WOULD LIKE TO SAY A VERY A VERY EXCITED [00:10:05] CONGRATULATIONS TO OUR 2024 DESOTO CIVIC ACADEMY GRADUATES OVER THE PAST TEN WEEKS, YOU HAVE STEPPED INTO THE HEART OF OUR CITY, MEETING THE DEPARTMENTS AND PEOPLE THAT MAKE DESOTO THRIVE FROM LEARNING ABOUT HOW OUR SERVICES COME TO LIFE, TO SEEING THE GEARS OF LOCAL GOVERNMENT IN ACTION, TO HAVING SOME REALLY GOOD FOOD, YOU'VE GAINED INSIGHTS THAT MANY RESIDENTS DON'T OFTEN GET TO SEE. BUT THIS ISN'T JUST ABOUT WHAT YOU'VE LEARNED. IT'S ABOUT YOU. YOUR DEDICATION, CURIOSITY, AND COMMITMENT TO UNDERSTANDING HOW DESOTO WORKS ARE WHAT MAKES THIS COMMUNITY SO SPECIAL. BY MAKING IT TO THE END OF THIS JOURNEY, YOU'VE PROVEN THAT YOU'RE NOT JUST SPECTATORS. YOU'RE PARTICIPANTS IN WHAT MAKES OUR CITY A BETTER PLACE. WE'RE EXCITED TO SEE WHAT'S NEXT FOR YOU, WHETHER YOU JOIN A BOARD VOLUNTEER, SHARE WHAT YOU'VE LEARNED OR SIMPLY STAY CONNECTED AND ENGAGED, YOUR INVOLVEMENT IS INVALUABLE. OUR CITY THRIVES IN THE ENERGY OF PEOPLE LIKE YOU, AND WE NEED MORE OF IT. SO THANK YOU FOR YOUR ENTHUSIASM, YOUR QUESTIONS. LOTS AND LOTS OF QUESTIONS AND YOUR TIME. DESOTO IS BETTER BECAUSE OF YOU. AND HERE'S TO THE DIFFERENCE YOU'LL MAKE IN OUR COMMUNITY. CONGRATULATIONS. AND AT THIS TIME, WE WOULD LIKE TO INVITE OUR MAYOR TO THE PODIUM TO OFFER ADDITIONAL WORDS AND PRESENT YOU WITH YOUR CERTIFICATES OF COMPLETION. GOOD EVENING EVERYONE. OH, WAIT A MINUTE. AM I ON THE RIGHT CIT? GOOD EVENING EVERYONE. HOW'S EVERYBODY DOING? GREAT. WELL, THIS IS JUST AN EXCITING NIGHT. CAN WE GIVE OUR CIVIC ACADEMY GRADUATES ONE MORE GREAT BIG HAND CLAP FOR ALL OF THE WORK AND DEDICATION? AND I'M SURE THE LONG NIGHTS AND ALL THAT YOU ALL WENT THROUGH AND JUST DEDICATING YOUR TIME, IT'S ALWAYS INCREDIBLE TO SEE THE RESIDENTS THAT STEP UP FOR THIS OPPORTUNITY IN OUR COMMUNITY, BECAUSE IT LETS US KNOW THAT OUR RESIDENTS ARE STRIVING TO BE ENGAGED. THEY WANT TO BE A PART OF WHAT'S HAPPENING IN THEIR COMMUNITY, AND THIS IS JUST ONE OF THE MANY WAYS THAT OUR RESIDENTS CAN BE ENGAGED TO HOPEFULLY FURTHER SPUR THEIR INVOLVEMENT IN DIFFERENT AREAS IN OUR COMMUNITY. SO AGAIN, I WANT TO JUST SAY THANK YOU ALL FOR ALL THAT YOU DO. AND IT IS RESIDENTS LIKE YOU THAT CHOOSE THESE OPPORTUNITIES THAT MAKE DESOTO A MUCH, MUCH BETTER PLACE TO LIVE, WORK AND PLAY. AND AS OUR MOTTO SAYS, IT MAKES DESOTO A PLACE WITH SO MUCH TO LOVE. SO AT THIS TIME, I WON'T BELABOR BECAUSE I KNOW YOU ALL ARE EXCITED TO GET YOUR CERTIFICATE. SO I'M GOING TO ASK FOR SOME ASSISTANCE IN HER TO TURN THE PAGE SO THAT I CAN FOLLOW THE SCRIPT. THANK YOU VERY MUCH. WE'RE GOING TO GO IN ALPHABETICAL ORDER AT THIS TIME. WHEN I CALL YOUR NAME, PLEASE COME UP AND WE'RE GOING TO DO JUST LIKE THEY HAVE YOU DO AT THE GRADUATION. WE'RE GOING TO WAIT TILL ALL THE NAMES ARE CALLED BEFORE WE CLAP OUR HANDS. EVERYBODY GOT THAT? ALL RIGHT. GREAT, GREAT. I KNEW WE COULD DO IT. ALL RIGHT. CAROLYN AUSTIN. THERE SHE IS. DEVONNA BAGGETT, ANGELA CARTER. KEYSHAWN COMBS, EDUARDO CONDE. SEE HERE. NOREEN FLAHERTY, LINDA FONTENOT. DONALD GATEWOOD. DEBORAH HAGER. ARTHUR. HOBBS. BRIAN. LARA. JERRY RAVENEL. DEIRDRE. REDMOND. TWYLA. ROBINSON. IKE. RUBIO. RASHAD. SHAHEED. RAQUEL. SMITH. MAURICIO. SMITH. DOROTHY SUMMER. TARA. THOMAS. RUTH. WASHINGTON. AKIMI. WATKINS. SHALONDA. WEAVE. CAROL. WRIGHT. LETICIA IBARRA. AND AIDA THOMAS. NOW WE CAN PUT OUR HANDS TOGETHER AND GIVE ONE MORE BIG HAND CLAP OF CONGRATULATIONS TO OUR GRADUATE. AND JUST TO MAKE SURE, IS THERE ANYBODY'S NAME THAT I DID NOT CALL THAT IS STILL IN OUR AUDIENCE. GREAT. ALL RIGHT. WE'RE GOING TO GET OUR [00:15:01] CERTIFICATES. AND I THINK WE'RE GOING TO TAKE A PHOTO. YES. OKAY. SO ALL OF OUR CIVIC ACADEMY GRADUATES, CONGRATULATIONS AGAIN. WE HAVE OUR ICE CREAM PARTY IN THE FISHBOWL. SO I'LL SEE YOU OVER THERE. CONGRATULATIONS AGAIN TO ALL OF OUR CIVIC ACADEMY GRADUATES. AND WE WANT TO GIVE A SPECIAL SHOUT OUT AND RECOGNIZE DOCTOR ESTHER WILLIAMS FOR DOING SUCH AN AMAZING JOB WITH THIS YEAR'S CIVIC ACADEMY COHORT. I KNOW THAT IT IS NOT EASY WORKING WITH THE DEPARTMENTS AND ARRANGING ALL OF THIS. SO THAT OUR RESIDENTS CAN HAVE SUCH A MEMORABLE EXPERIENCE. SO AGAIN, THANK YOU, DOCTOR WILLIAMS FOR ALL OF YOUR HARD WORK AND EVERYBODY THAT WORKED ALONGSIDE YOU TO MAKE SURE THAT THIS COHORT WAS AS GOOD AS IT COULD BE. THANK YOU SO MUCH. AT THIS [d. Presentation of update on Proposed Public Utilities Building ] TIME, MISS THOMAS WILL HAVE THE NEXT ITEM ON THE AGENDA, PLEASE. NEXT WE HAVE PRESENTATION OF UPDATE ON PROPOSED PUBLIC UTILITIES BUILDING MAKING THAT PRESENTATION IS BRANDON LACY, PUBLIC UTILITIES DIRECTOR. THANK YOU, MISS THOMAS, AND GOOD EVENING, MAYOR AND COUNCIL. I APPRECIATE THE OPPORTUNITY TO PRESENT THE UPDATES TO THE DESOTO PUBLIC UTILITIES COMPLEX. THIS UPDATE REALLY SERVES AS A CONTINUATION OF OUR JULY 15TH WORK SESSION, WHERE WE PRESENTED THE RESULTS OF THE FEASIBILITY STUDY FOR OUR PUBLIC UTILITIES BUILDING. IF YOU WILL RECALL, THERE WERE THREE KEY TAKEAWAYS THAT THE COUNCIL WANTED OUR DEPARTMENT TO GO BACK AND GET SOME MORE INFORMATION ON. AND THAT WAS WHAT WE WILL BE PURSUING. GRANT OPPORTUNITIES. THE COST BENEFIT ANALYSIS OF PURSUING LEED CERTIFICATION FOR THE PUBLIC UTILITIES BUILDING, AND ALSO OTHER BUILDINGS IN THE IMMEDIATE AREA THAT THAT ARE LEED CERTIFIED. SO FOR THE INTEREST OF TIME TONIGHT, BECAUSE I KNOW WE HAVE A HEAVY AGENDA, I'LL GO AHEAD AND ADDRESS THE FIRST QUESTION OF WILL WE PURSUE GRANT OPPORTUNITIES? THE SHORT OF THE LONG IS ABSOLUTELY YES. WE WILL PARTNER WITH OUR COWORKER DOCTOR WILLIAMS AND RELY ON THEIR EXPERTISE, AND YOU'LL SEE SOME OF THAT IN THE NEXT PRESENTATIO. REGARDING GRANT OPPORTUNITIES, WE'LL NEED TO FLESH OUT A LITTLE BIT MORE OF THE DESIGN FOR THIS BUILDING TO ACTUALLY SEE WHAT THIS BUILDING WILL QUALIFY FOR. AND BY WAY OF GRANT OPPORTUNITY. SO WE HAVEN'T QUITE GOTTEN THERE YET. SO AT THIS POINT, I WILL YIELD THE PODIUM TO MR. GREG ARCHER, WHO IS THE DIRECTOR OF ARCHITECTURE FOR GARVER. HE WILL GIVE A PRESENTATION OF THE FINDINGS OF QUESTION NUMBER TWO AND QUESTION NUMBER THREE, THE COST BENEFIT ANALYSIS AND THE OTHER BUILDINGS IN THE AREA THAT HAVE LEED CERTIFICATION. AFTER HE'S DONE WITH HIS PRESENTATION, WE'LL FIELD ANY QUESTIONS YOU MIGHT HAVE. THANK YOU. GOOD EVENING. GOOD EVENING. THANK YOU, BRANDON, FOR THE INTRODUCTION. I APPRECIATE THE OPPORTUNITY. COUNCIL MEMBERS, CITY MANAGER, MAYOR PRO TEM, THANK YOU FOR OPPORTUNITY TO COME BEFORE YOU AGAIN AND DISCUSS THIS AMAZING FACILITY THAT WE'RE DESIGNING FOR THE CITY OF DESOTO, AS THE AGENDA FOR THIS BRIEF DISCUSSION TONIGHT, WE'LL DO A LITTLE OVERVIEW OF THE PROJECT STATUS UPDATE, DISCUSS THE SUSTAINABILITY ITEMS THAT WE BROUGHT UP, HAD SOME QUESTIONS BACK IN JULY. ALSO REVISIT THE OPINION OF PROBABLE CONSTRUCTION COSTS FOR A COUPLE OF OPTIONS THAT WE DISCUSSED BACK IN JULY, AND THEN HAVE SOME TIME FOR SOME COMMENTS. SO THIS, AS YOU CAN SEE, JUST AS AN OVERVIEW, WE FINISHED SCHEMATIC DESIGN FOR THE FACILITY. THIS IS A CONCEPTUAL RENDERING. WE'LL HAVE A FLY THROUGH AT THE END OF THIS PRESENTATION. SO YOU CAN SEE A LITTLE MORE DETAIL. BUT VERY [00:20:04] PROUD OF THE PROGRESS WE'VE MADE TO DATE. AND ONE OF THE QUESTIONS WE HAD BACK IN JULY WERE NEARBY MUNICIPALITIES. WHAT EFFORTS THEY ARE TAKING FOR LEED CERTIFICATION. AND AS YOU CAN SEE BY THE GRAPHIC AND THE CHART IN THE NORTHERN TEXAS AND CENTRAL TEXAS AREA, THERE ARE QUITE A FEW CITIES AUSTIN, DALLAS, HOUSTON, SAN ANTONIO, CEDAR HILL THAT ARE HAVE PURSUED AND ACHIEVED LEED CERTIFICATION FOR MANY OF THEIR FACILITIES, SILVER BEING THE MOST PREVALENT CERTIFICATION LEVEL, AND FOR LEED CERTIFICATION, OUR TEAM RECOMMENDS SILVER CERTIFICATION FOR THIS PROJECT. AS MOST OF YOU KNOW, LEED IS THE WORLD'S MOST WIDELY RECOGNIZED GREEN BUILDING RATING SYSTEM. THERE ARE QUITE A FEW BENEFITS TO LEED DESIGN AND CERTIFICATION. ONE OF THE MOST IMPORTANT BENEFITS IS YOU REALIZE UTILITY SAVINGS FROM INCREASED WATER AND ENERGY EFFICIENCY, WHICH GIVES YOU A GREAT RETURN ON INVESTMENT, SPECIFICALLY WITH LEED SILVER COMPARED TO OTHER LEVELS. MANY OF THE FACILITIES THAT ACCOMPLISH LEED SILVER CERTIFICATION ACHIEVES BETWEEN 15 AND 30% ENERGY SAVINGS. OBVIOUSLY, THIS VARIES BASED ON THE TYPE OF FACILITY AND THE USAGE, BUT THAT'S WHAT WE SEE MANY TIMES WITH LEED SILVER CERTIFICATION. AND ANOTHER OF THE TOPICS THAT WE HAD BACK IN JULY WAS WHAT LEVEL OR HOW MANY OF THE FACILITIES FOR THIS PROJECT WOULD WE RECOMMEND PURSUING LEED SILVER CERTIFICATION? WE HAVE TWO PRIMARY BUILDINGS THAT ARE PART OF THIS COMPLEX, THE ADMINISTRATION BUILDING AND THE MAINTENANCE BUILDING. AND THEN SOME OUTLYING UTILITARIAN STRUCTURES. WE RECOMMEND PURSUING LEED SILVER CERTIFICATION FOR THE ADMINISTRATION BUILDING ONLY. THAT'S WHERE YOU HAVE THE MAJORITY OF YOUR OCCUPIABLE SPACE. WE THINK THAT WILL GIVE YOU THE BEST RETURN ON INVESTMENT FOR THE CITY OF DESOTO. AND AS YOU CAN SEE BY THE BULLET ITEMS, THERE ARE QUITE A FEW ADVANTAGES FOR A LEED DESIGN AND LEED SILVER CERTIFIED BUILDING. IT'S A MORE COMFORTABLE WORKPLACE. THERE ARE ENHANCEMENTS TO INDOOR AIR QUALITY AND THERMAL COMFORT. ONE OF THE BIG DESIGN PROPONENTS IS ACCESS TO NATURAL DAYLIGHT AND VIEWS TO THE OUTDOORS. USE OF LOW EMITTING MATERIALS AND THESE FACILITIES HAVE A DEMONSTRATED INCREASE IN PRODUCTIVITY AND OCCUPANT SATISFACTION. AND IT ALSO ENCOURAGES HEALTH AND WELLNESS OF THE OCCUPANTS. SO OPINION OR PROBABLE CONSTRUCTION COSTS. WE'VE UPDATED THIS BASED ON THE LEVEL WE'RE AT AT SCHEMATIC DESIGN. WE'VE LOOKED AT A COUPLE OPTIONS. ONE IS THE FULL BUILD OUT, WHICH INCLUDES THE BILLING COMPONENT. WITH THAT, AS YOU CAN SEE, WE'RE JUST UNDER $10.7 MILLION. AND THEN IF YOU ADD SUSTAINABILITY ESTIMATED TO HAVE AN ADDITIONAL 5% FOR LEED SILVER CERTIFICATION, WHICH WOULD PUT US JUST UNDER 11.2, AND THEN THE ADDITIONAL FEES FOR GARVER'S DESIGN SERVICES AND GBCI REGISTRATION AND CERTIFICATION, AND THEN THE OTHER OPTION IS OPTION ONE A, WHICH WE DISCUSSED IN JULY. THAT IS TO DO A SHELL SPACE FOR PART OF THIS FACILITY. THAT WOULD BE THE BILLING COMPONENT THAT WOULD BE FOLLOWING THAT ROUTE. WE'RE LOOKING AT JUST UNDER 10 MILLION FOR THE CURRENT EPC, ONCE AGAIN ADDING 5% FOR SUSTAINABILITY AND LEED SILVER CERTIFICATION. INITIAL 456,000, PUTTING US AT JUST UNDER, EXCUSE ME, JUST OVER 10.4 MILLION. AND THEN ONCE AGAIN, THE SUSTAINABILITY FEES FOR GARVER'S DESIGN SERVICES FOR DESIGN AND CONSTRUCTION RELATED ACTIVITIES. AND GBCI REGISTRATION AND CERTIFICATION FEES. AND THEN JUST AN UPDATE OR EXCUSE ME, A COMPARISON OF THE TWO. OPTION ONE WOULD BE WITH THE FULL BUILD OUT. OPTION TWO WOULD BE SHARING THE BILLING COMPONENT OF THE PROJECT APPROXIMATELY ABOUT 4500FT■S OR SO. AND THEN WE HAVE A LITTLE FLY THROUGH TO GIVE YOU KIND OF SEE WHERE OUR STATUS IS AT THE CONCLUSION OF SCHEMATIC DESIGN. THIS IS THE MAIN ENTRY AND THE ADMINISTRATION BUILDING, WHICH IS THE PRIMARY FOCUS OF THE COMPLEX. AS YOU CAN SEE, IT'S A VERY WELL THOUGHT OUT AND INTEGRATED ADDITION TO THE CITY OF DESOTO. WE THINK IT WILL BE A NICE COMPLEMENT TO YOUR PUBLIC FACILITIES. ALSO SOME SOME SEPARATE ENTRIES. THERE'S A AREA IN THE BACK FOR STAFF FOR OUTDOOR ACTIVITIES. THIS IS THE [00:25:07] MAINTENANCE BUILDING COMPONENT, THREE LARGE MAINTENANCE BAYS AND THEN UTILITARIAN SPACE INSIDE THE MAINTENANCE BUILDING. STAFF PARKING ON THIS AREA OF THE PROJECT. PUBLIC PARKING IN THE FRONT. AND JUST CIRCLING THROUGH SOME OF THE COMPONENTS. BUT WE'RE VERY PLEASED WITH THE PROGRESS THAT WE'VE MADE ON THE DESIGN OF YOUR NEW PUBLIC UTILITIES FACILITY. AND THEN BACK AS A RECAP ON THE EPC CITY STAFF AND GARVER RECOMMEND OPTION ONE, A, WHICH IS THE TOTAL BUILDING, BUT WITH A ADDITIVE ALTERNATE FOR SHELL SPACE. SO WE WOULD HAVE SHELL SPACE FOR THE BUILDING COMPONENT, BUT WE COULD WE WILL INCLUDE AN ADDITIVE ALTERNATE IN THE CONSTRUCTION DOCUMENTS THAT WILL ALLOW CITY COUNCIL TO MAKE A DECISION WHEN BIDS COME IN TO HAVE AN INFORMED DECISION ON WHAT THAT ACTUAL COST WOULD BE, TO FINISH OUT THAT SPACE. AND THEN ANY QUESTIONS OR COMMENTS? THANK YOU SO MUCH, COUNSELOR. ARE THERE ANY QUESTIONS OR COMMENTS? AND BECAUSE OF OUR AGENDA TONIGHT, WE WILL DO INSTITUTE ROUNDS FOR EACH OF OUR AGENDA TOPICS TO MAKE SURE THAT WE STAY EFFICIENT WITH OUR TIME. TONIGHT, FOR EACH OF THESE TOPICS, YES. COUNCIL MEMBER PARKER, YOU HAVE TWO MINUTES. THANK YOU, MADAM MAYOR. THANK YOU FOR YOUR PRESENTATION. I DO HAVE A QUESTION ABOUT. I WAS LOOKING AT IT AND I WAS A LITTLE CONFUSED. SO ONE A AND ONE A I'M SORRY. ONE AND ONE A YOU'RE SAYING THAT YOU ALL AS WELL AS STAFF ARE RECOMMENDING ONE. A WE'RE RECOMMENDING ONE A AND WITH THE WAY WE ANTICIPATE DEVELOPING THE CONSTRUCTION DOCUMENTS THAT WILL GO OUT FOR BID IS THAT WE WOULD DO AN ADDITIVE ALTERNATE FOR THAT BUILDING COMPONENT. SO THEN YOU, CITY COUNCIL WOULD HAVE THE OPTION WHEN BIDS COME IN TO DECIDE IF YOU WANT TO INCLUDE THAT SPACE AS PART OF THE TOTAL BUILD OUT, OR DEFER THAT TO A LATER DATE. BUT ON THE DESIGN, WHAT WAS THE SHELL? WHAT WAS WHAT WAS THAT LITTLE PIECE? WHAT DID IT LOOK LIKE? SO THAT THAT'S THE PART ON THE UPPER KIND OF LEFT PART IN THE FRONT THAT WOULD BE THE BUILDING COMPONENT. SO WE'LL STILL DO THE ENTIRE ENVELOPE OF THE BUILDING. AND THEN THE QUESTION IS WHETHER THAT WILL BE SHELL SPACE OR FINISHED OUT IN THE INITIAL CONSTRUCTION. OKAY. AND IF IT'S FINISHED OUT IT'S FINISHED OUT IN ORDER FOR PEOPLE TO PAY YOUR WATER BILL THERE. YES, MA'AM. OKAY. I GUESS I'M NOT UNDERSTANDING WHY YOU WOULDN'T. I MEAN, I'M JUST A LITTLE CONFUSED ON THAT PART. WHY? IT WOULDN'T ACTUALLY BE, YOU KNOW, A VIABLE OPTION TO GO AHEAD AND DO IT IF YOU'RE ALREADY DOING I. I MEAN, OKAY, THANK YOU. I'LL TAKE A CRACK AT THAT QUESTION. COUNCIL MEMBER PARKER. WHAT IT DOES, IT REALLY COMES DOWN TO COST. SO IF YOU RECALL, BACK IN JULY, I THINK IT WAS COUNCIL MEMBER RAPHAEL ASKED, YOU KNOW, IF WE ACTUALLY IF OUR DEPARTMENT OUTGREW CITY HALL, WE WOULD THEN HAVE A SPACE TO HOLD THE BUILDING AT LEAST PART OF THE BUILDING FUNCTION AND THE ADMINISTRATIVE FUNCTION. SO WHAT STAFF IS RECOMMENDING THAT WE DO WE ACTUALLY WE'RE GOING TO DESIGN THE BUILDING IN ITS ENTIRETY, BUT ACTUALLY PUT THE CONSTRUCTION DOCUMENTS TO HAVE A BUILDING WITH THE UNFINISHED SHELL SPACE. HOWEVER, THE UNFINISHED SHELL SPACE WILL BE LISTED AS AN ADDITIVE ALTERNATE. THAT WAY, IF THE PROJECT COMES IN AT UNDER BUDGET AND WE CAN ACTUALLY SUPPORT FINISHING OUT THE WHOLE BUILDING, WE WOULD BRING THAT TO COUNCIL AS A RECOMMENDATION. OKAY. THAT'S IT. I MEAN, I'M SORRY, I JUST FELT A LITTLE LIKE, YOU KNOW, LIKE TO HAVE A COMPLETE DESIGN, BUT OKAY, I GET YOU. THANK YOU. I YIELD BACK. THANK YOU. COUNCIL. ANY ADDITIONAL QUESTIONS? SEEING NO LIGHTS, IS THERE ANY ADDITIONAL DIRECTION THAT YOU NEED FROM COUNCIL ON THIS, MR. LACEY? YES, MA'AM. SO AS WE MENTIONED, WE ARE A STAFF AND CONSULTANTS. WE ARE RECOMMENDING LEED SILVER CERTIFICATION AS WELL AS GOING WITH OPTION ONE, A WITH THE UNFINISHED SHELL SPACE. AND WE'RE AT THE POINT NOW TO WHERE IN THE DESIGN PROCESS, WE'RE GOING TO HAVE TO NEED TO MAKE THAT DECISION. IF WE'RE GOING TO DESIGN TO LEED STANDARDS. SO THAT WOULD BE THE CONSENSUS THAT I WOULD SEEK TONIGHT FROM THE CITY COUNCIL. THANK YOU. YES, COUNCILMAN BURKE, THANK YOU, MR. LACEY. HOW DOES THIS PROJECT RELATE TO THE PUMP STATION? SO THEY'RE ACTUALLY TWO SEPARATE PROJECTS, CORRECT. SO THE PUMP STATION PROJECT GENERALLY ADDRESSES THE CURRENT BUILDING THAT WE'RE IN WHERE THE PUMP STATION IS HOUSED. THAT'S THE BUILDING THAT WILL BE GETTING REHABBED AS FAR AS THIS PROJECT IS CONCERNED, THIS WILL BE A SEPARATE ADMINISTRATIVE COMPLEX. SO ORIGINALLY WHEN THIS BUILDING [00:30:04] WAS CONSTRUCTED BACK IN 1986, IT WAS THE INTENDED PURPOSE WAS TO ONLY BE A PUMP STATION. RIGHT. BUT YOU KNOW, AS WE'VE GROWN AS A CITY STAFF, EQUIPMENT AND OTHER THINGS, WE NOW NEED A BUILDING WHERE WE CAN ACTUALLY HOUSE EQUIPMENT, HOUSE STAFF THAT AND HABITABLE OFFICES, NOT, YOU KNOW, IN HALLWAYS AND SUCH LIKE THAT. AND ONE THING THAT I WILL BRING UP IS THE WINTER STORM TAUGHT US, YOU KNOW, REALLY A LOT OF VALUABLE LESSONS IN HAVING EQUIPMENT THAT'S NOT ALWAYS OUT IN THE ELEMENTS AND BEING ABLE TO BE IN A CLIMATE CONTROLLED ENVIRONMENT. SO THIS IS WHAT ALLOWS US TO ACTUALLY TAKE BETTER CARE OF OUR EQUIPMENT, HAVE AN AREA FOR OUR EMPLOYEES TO BE ABLE TO DO WORK, STORAGE SPACE FOR EQUIPMENT AND SUCH, BUT THIS PROJECT DOES NOT. IT IS NOT REPLACING OR UPGRADING OUR CURRENT WATER PUMP SYSTEM. NO SIR. THIS IS A SEPARATE. AND SO I WOULD JUST LIKE TO KNOW MAYBE FROM THE CITY MANAGER, WHY DID WE CHOOSE TO PUT THE WATER PUMP STATION ON HOLD AND PROCEED WITH THIS? WHAT WAS THE LOGIC BEHIND IT OR OR MAYBE FROM YOU? OKAY, SO ACTUALLY IT'S TWO SEPARATE FUNDING MECHANISMS. SO BACK IN 2018, THE CITY COUNCIL AUTHORIZED THE CITY MANAGER AT THE TIME TO BEGIN ACTUALLY SAVING AND TRANSFERRING FROM THE FUND BALANCE, ACCORDING TO THE CITY'S FUND BALANCE POLICY, IN ORDER TO SAVE UP FOR THIS BUILDING, FOR A FUTURE PUBLIC UTILITIES BUILDING. THE PUMP STATION ACTUALLY DIDN'T COME ALONG TILL ABOUT 2021. AFTER WE FINISHED OUR WATER AND OUR WATER DISTRIBUTION MASTER PLAN. RIGHT. AND I AND I APPRECIATE THAT INFORMATION. I WOULD REALLY LIKE TO KNOW THE HIERARCHY OF NEED AND IMPORTANCE BECAUSE I THINK THAT WE THAT THAT THE COST ON THAT ONE WAS SLIDING. RIGHT. AND IF WE'RE GOING TO SO WHICH ONE WOULD BE THE BETTER USE OF AND I UNDERSTAND THAT WE WERE SAVING FOR ONE AND NOT FOR THE OTHER. I DO UNDERSTAND THAT. SO THAT I JUST WOULD ADD BEFORE WE GO ANY I'D LIKE SOME CLARITY ON THAT. WE CERTAINLY CAN. THANK YOU. WELL COUNCIL AS MR. LACEY SAID TONIGHT, THEY ARE SEEKING CONSENSUS AND CAN YOU JUST REITERATE SO WE CAN GO AHEAD AND KIND OF SEE IF WE CAN GET A CONSENSUS ON WHAT YOU'RE NEEDIN, RESTATE WHAT YOU NEED FROM US. ALL RIGHT. SO SEEING THE OPINION OF PROBABLE CONSTRUCTION COST FOR OPTION ONE A AND WHAT IT ADDS IN TERMS OF CONSTRUCTION AS WELL AS DESIGN COST IS COUNCIL COMFORTABLE WITH US PROCEEDING AND DESIGNING THE BUILDING TO LEED SILVER CERTIFICATION. AND ARE YOU OKAY WITH OPTION ONE A BEING THE BID PACKAGE WHEN THIS PROJECT GOES OUT TO CONSTRUCTIO? I JUST WANT TO CLARIFY, MAYOR, WHEN WE BID THIS BUILDING, WE ACTUALLY ARE GOING TO BID IT AS A ONE. A SHELL WITH AN ADDITIVE ALTERNATE TO DO THE ULTIMATE DESIGN. IF WE RECEIVE FAVORABLE BIDS, THEN WE'LL BRING IT BACK TO COUNCIL WITH A RECOMMENDATION THAT WE DO THE ENTIRE BUILDING, NOT JUST THE SHELL, YOU KNOW, ONLY. POINT OF INFORMATION. WHEN YOU SAY FAVORABLE, I GUESS I'M I GUESS WHERE I AM IS JUST TRYING TO UNDERSTAND. OKAY, SO THIS GOES OUT FOR BID AND SAY YOU GET YOU KNOW, IT'S GOING TO COST WAY MORE, BUT YOU HAVE A SHELL THAT'S NOT BUILT OUT. WHAT DOES THAT LOOK LIKE? I MEAN, WHAT I MEAN, WE JUST HAVE A SHELL. WE'LL JUST SIT WITH A SHELL UNTIL. SO THERE WOULD BE A PORTION OF THE BUILDING THAT WOULD PRETTY MUCH BE HOLLOWED OUT, WOULD NOT BE BUILT OUT. SO THE OPERATIONS PORTION OF THE BUILDING WOULD BE BUILT OUT WHERE THAT STAFF WOULD HAVE A PLACE. HOWEVER, WE WOULD NOT MOVE THE UTILITY BILLING FUNCTIONS UNTIL SUCH A TIME WE MOVE FORWARD WITH FINISHING OUT THAT SPACE SO WE COULD POSSIBLY END UP WITH MORE COST TO BUILD THE SHELL OUT WAITING DOWN THE ROAD. POTENTIALLY. NO, YOU WOULDN'T, YOU WOULDN'T KNOW. YOU WOULDN'T KNOW BECAUSE. BECAUSE A LOT OF THE EXPENSE IS WITH THE TENANT IMPROVEMENTS OR WITH THE INTERIOR WALLS. SOMETIMES. RIGHT. WHAT THE DIFFERENCE IN THE PROBABLE CAUSE, AS YOU SEE, IS BETWEEN $11.3 MILLION AND $10.4 MILLION. SO IT SHOULD BE A LOT LESS WITH A PORTION OF THE BUILDING BEING BUILT. WHAT WE'RE TRYING TO SAY IS THAT BUILDING IS STILL GOING TO BE HERE FOR ANOTHER 2 OR 3 YEARS. WHY? WHY NOW? BUILD A WHOLE NEW SPACE THAT IS GOING TO BE JUST NOT USED. ALL RIGHT. WHEN, WHEN THE DECISION IS FOR ALL THE BUILDING TO MOVE TO THAT NEW BUILDING, THEN WE CAN ADD THAT PORTION. NOW, IF WE HAVE FAVORABLE BIDS, THEN WE CAN COME BACK TO THE CITY COUNCIL AND SAY, LET'S SAY FOR EXAMPLE, THE BUILDING IS WORTH IS THE PROBABLE COST IS ABOUT $10.4 MILLION, AND WE RECEIVE FAVORABLE BIDS FOR $8 MILLION WITH THE FULL BUILD OUT TO BE $9 MILLION. WE'RE GOING TO COME BACK TO YOU AND SAY, WE'RE GOING TO DO WE'RE WE'RE RECOMMENDING DOING THE ENTIRE BUILDING BECAUSE IT'S STILL UNDER WHAT THE PROBABLE CAUSE [00:35:05] FOR THE SHELL IS. SO THIS IS JUST A GUESSTIMATE IS WHAT YOU'RE SAYING. ABSOLUTELY. OKAY. YEAH. WE DON'T HAVE ANY BIDS. SO WE DON'T KNOW UNTIL WE RECEIVE THE BIDS. AND AS, AS, AS WE'VE SEEN IN SOME INSTANCES, WE'VE RECEIVED VERY FAVORABLE BIDS IN SOME INSTANCES WE HAVEN'T. SO IF, IF WE, IF WE RECEIVE VERY, VERY OUTRAGEOUS BIDS, IF YOU WILL, WE PROBABLY WILL COME BACK TO YOU AND SAY, NO, WE'RE GOING TO LOOK AT ANOTHER OPTION. WE'RE NOT GOING TO OVERSPEND. OKAY? I MEAN, THE ONLY REASON I EVEN SAY THAT WITH THE POINT OF INFORMATION WAS JUST TRYING TO MAKE SURE, BECAUSE WE KNOW THAT RIGHT NOW INTEREST RATES ARE WHERE THEY ARE ON MATERIAL COSTS AND THINGS LIKE THAT. AND ALL ESTIMATES HAVE TO TAKE INTO ACCOUNT ANY MATERIAL COST. AND IF THE MATERIAL COST NEXT YEAR IS EVEN 10 OR 15% HIGHER THAN THEY ARE RIGHT NOW, THAT BID MEANS NOTHING. I MEAN, YOU KNOW, THAT ESTIMATE MEANS NOTHING. NEXT YEAR IT'LL BE EVEN MORE IS THE REASON WHY I WAS SAYING THAT. I JUST WANTED TO MAKE CERTAIN. SO WE'RE NOT PAINTING OURSELVES INTO A CORNER. CORRECT. SO LET ME LET ME ADDRESS THAT AS A PART OF THIS DESIGN PROCESS. ANY DESIGN PROCESS WITH ANY PROJECT THROUGHOUT THE CITY, THEY ARE CURRENTLY LOOKING AT EVERY STEP OF THE WAY. 30% DESIGN PLAN, 60% DESIGN, 90% GIVING US UPDATED OPAQUE COSTS. SO YOU KNOW, IF YOU HAVE AN OUTLANDISH EVENT LIKE WE HAD, YOU KNOW, WITH COVID OR SUPPLY CHAIN, THAT'S GOING TO DRAMATICALLY AFFECT THE OPCC, THE EXPECTATION OF ME WOULD BE TO COME BACK TO THE CITY COUNCIL AND GIVE YOU THAT UPDATE, MUCH LIKE WE'RE DOING THIS EVENING. THANK YOU. YOU'RE WELCOME. I APPRECIATE IT. THANK YOU. COUNCIL MEMBER. RAPHAEL, YOU HAVE TWO MINUTES. THANK YOU FOR THE PRESENTATION. I THINK. COULD YOU CLARIFY FOR ME THE NEED FOR UTILITY BILLING TO BE RELOCATED TO THIS DIFFERENT AREA? AND THE QUESTION AND IF YOU COVERED IT, MY APOLOGIES, BUT JUST FOR CLARITY, FOR ME AND MY QUESTIONING RELATED TO THAT IS JUST THINKING ABOUT, YOU KNOW, IF I'M THINKING ABOUT THE CUSTOMER, THE CUSTOMER WHO TRADITIONALLY COMES HERE, YOU KNOW, WITH WITH CITY HALL BEING THE CENTRAL CORE AND NOW MOVING DOWN TO, YOU KNOW, WHERE, YOU KNOW, TO THE NEW LOCATION WHERE THIS WOULD BE, WHY IS THERE A NEED FOR THE BILLING DEPARTMENT TO MOVE? HOW ARE WE INCORPORATING TECHNOLOGY IN TERMS OF WHAT THAT LOOKS LIKE MOVING FORWARD? YOU KNOW, SO I'M TRYING TO UNDERSTAND LIKE HOW YOU SEE THE GROWTH OF THAT PARTICULAR DEPARTMENT AND THE INCORPORATION OF TECHNOLOGY, POSSIBLY, YOU KNOW, THAT COULD FACILITATE, YOU KNOW, NOT GETTING BRINGING IN NEW STAFF. AND WHY DO THEY NEED TO MOVE THERE AND YOU KNOW, WHAT WILL HAPPEN IF WE DIDN'T MOVE THEM THERE? OKAY. SO YOU KNOW, AS IT AS IT STANDS RIGHT NOW, YOU KNOW, WE ARE PRETTY CROWDED, YOU KNOW, DOWN HERE AT TOWN CENTER. SO THIS WAS AN EFFORT TO ACTUALLY HAVE A SECONDARY SPACE TO WHERE, IF MY DEPARTMENT NEEDED TO MOVE, THERE WOULD BE A SPACE FOR THEM TO BE HOUSED TO ACTUALLY FREE UP. AS YOU KNOW, THE DEPARTMENTS DOWN HERE AT CITY HALL CONTINUE TO GROW. NOW, TO YOUR POINT, CUSTOMERS WHO HAVE GOTTEN USED TO, YOU KNOW, COMING DOWN HERE, WE WOULD HAVE TO EXPLORE THAT AS STAFF. WHAT THAT LOOKS LIKE, YOU KNOW, EITHER PERHAPS HAVING A PORTION OF THE STAFF HERE AND A PORTION AT THE NEW ADMINISTRATION BUILDING OR HAVING A KIOSK, YOU KNOW, HERE WE WOULD DEFINITELY FLESH OUT THE WORD, YOU KNOW, ALL BASES WOULD BE COVERED WHERE THEY WOULD BE OR THE CUSTOMER WOULD WOULDN'T BE INCONVENIENCED, BUT THAT WOULD BE SOMETHING WE WOULD WE WOULD HAVE TO TAKE A LOOK AT. THANK YOU. MAYOR PRO TEM. THANK YOU. MADAM MAYOR. I JUST WANTED TO SAY THANK YOU FOR YOUR PRESENTATION. AND I AM GOOD WITH MOVING FORWARD WITH THE DESIGN USING ONE A THANK YOU. THANK YOU. COUNCIL. AS WAS MENTIONED EARLIER, THEY DO NEED A CONSENSUS FROM US ON THE DIRECTION TO MOVE FORWARD. SO I'M GOING TO START IMMEDIATELY TO I'M GOING TO START RATHER TO MY RIGHT WITH YOU MAYOR PRO TEM. YES. COUNCIL MEMBER CHISHOLM. YES. DOCTOR MARKS. YES, MYSELF IS. YES. COUNCILMAN BURKE. YES. YES. COUNCIL MEMBER RAFAEL. YES. WITH THE CAVEAT OF ASSESSING WHETHER THE ENTIRE DEPARTMENT NEEDS TO MOVE OR NOT, AND FACTORING THAT AS PART OF THE BUILD. COUNCIL MEMBER PARKER. YES. OKAY. THAT IS UNANIMOUS. THANK YOU, MR. LACEY. WE APPRECIATE IT. THANK YOU. MAYOR. GOOD TO SEE YOU AT THIS TIME, MISS THOMAS. WE WILL HAVE THE NEXT ITEM ON THE AGENDA. AND COUNCIL. WE WILL HAVE A SLIGHT ALTERATION TO OUR AGENDA. SO THAT WE CAN GET OUR EXECUTIVE SESSIONS IN SOME OF THE OWNERS, WITH US MOVING ALL OF OUR EXECUTIVE SESSIONS TO MONDAY NIGHT WAS SO THAT WE COULD HAVE THEM EARLIER ON VERSUS AT THE END OF OUR MEETINGS. AND BECAUSE OF THE LENGTH OF OUR AGENDA AND WANT TO MAKE SURE THAT WE, AGAIN, ARE EFFICIENTLY USING OUR TIME, I WANT TO GO AHEAD AND GET THOSE EXECUTIVE SESSIONS OUT OF THE WAY SO THAT WE CAN HAVE THE TIME AND THE CONSIDERATION FOR WHAT THEY'LL BE ASKING OF US IN THOSE EXECUTIVE SESSIONS. SO WE WILL HAVE THE NEXT ITEM ON THE AGENDA, WHICH IS ITEM E, IS THAT IN STAFF AND MR. CITY MANAGER [00:40:03] AND STAFF, IS THAT THE LAST PRESENTATION THAT HAS AN OUTSIDE CONSULTANT THAT'S MAKING THE PRESENTATION? I WANT TO MAKE SURE ANY CONSULTANTS THAT ARE HERE GO AHEAD. BEFORE WE GO INTO EXECUTIVE SESSION, WE HAVE A FINANCIAL REPORT OKAY. SO NOT SO FAST. WE HAVE ONE MORE. SO WHAT WE'LL DO IS WE WILL HAVE THE NEXT PRESENTATION REGARDING I BELIEVE THE ENERGY CONSERVATION AND THEN THE INVESTMENT POLICY INVESTMENT REPORT IS THAT CORRECT? OKAY. SO WE'LL HAVE E AND F AND THEN WE WILL PUT A, PUT A PAUSE THERE AND THEN GO INTO EXECUTIVE SESSION. AND THEN WE'LL RESUME ALL OTHER. DID YOU MEAN E AND G. YES I DID, THANK YOU. NEXT WE HAVE PRESENTATION [e. Presentation of City-wide Energy Conservation Investment Grade Audit] OF CITYWIDE ENERGY CONSERVATION INVESTMENT GRADE AUDIT MAKING. THE INTRODUCTION IS DOCTOR ESTHER WILLIAMS COMMUNITY SERVICE AND EXTERNAL AFFAIRS DIRECTOR. OKAY. GOOD EVENING MAYOR AND COUNCIL MEMBERS. THANK YOU FOR THE OPPORTUNITY TO PRESENT THIS TONIGHT. UPDATE TONIGHT, OUR CONSULTANTS FROM ENERGY SYSTEMS GROUP, NIFI AND CODY ARE HERE TO PRESENT TO YOU SOME FINDINGS ABOUT OUR CITYWIDE ENERGY CONSERVATION INVESTMENT GRADE. AUDIT OUR IGA AS A QUICK BACKGROUND, THE CITY ENTERED INTO THIS AGREEMENT IN AUGUST 2024 WITH THE GOAL OF IDENTIFYING ENERGY INEFFICIENCIES, REDUCING COSTS, AND MINIMIZING OUR ENVIRONMENTAL IMPACT. THIS AUDIT COVERS KEY AREAS SUCH AS LIGHTING, HVAC SYSTEMS, WATER USAGE AND RENEWABLE ENERGY OPPORTUNITIES. BUT I WILL ALLOW NIFI TO TAKE ON THE PRESENTATION NOW SO I DON'T MESS ANYTHING UP. AND IF YOU HAVE ANY QUESTIONS, HE'S HERE TO THEY'RE HERE TO ANSWER. AND IF WE HAVE TO BRING YOUR QUESTIONS BACK AT ANOTHER TIME, WE CAN DO THAT AS WELL. MAKE SURE IT'S ON OKAY. THANK YOU, DOCTOR WILLIAMS. GOOD EVENING MAYOR. GOOD EVENING COUNCIL. MY NAME IS NIFI WARRIOR. I'M A PROJECT SUCCESS LEADER WITH ZERO ENERGY ESG. I'VE BEEN WORKING IN FACILITIES, ENERGY AND CONSERVATION FOR ABOUT 20 YEARS NOW. MY PARTNER WITH ME HERE TODAY IS CODY. I'M CODY GLOVER, VICE PRESIDENT OF OPERATIONS FOR ENERGY SYSTEMS GROUP AND A COUPLE OF OUR BETTER LOOKING TEAM MEMBERS WERE NOT ABLE TO MAKE IT TONIGHT. SO YOU'RE STUCK WITH US. BUT I HOPE THAT WE CAN DO THE JOB FOR YOU. WE'LL GO FROM THERE. TODAY'S AGENDA. AND I'M GOING TO TRY AND BE RESPECTFUL OF YOUR TIME AND MOVE THROUGH PRETTY QUICKLY. WE'RE GOING TO GO OVER WHO WE ARE. WE'RE GOING TO TALK ABOUT IN HIGH LEVEL, WHAT WE'RE DOING FOR THE CITY RIGHT NOW. AND THEN WE'RE GOING TO TALK ABOUT SPECIFICALLY THE PROJECT THAT WE'RE HOPING TO DO WITH YOU. WHO ARE WE? SO WE ARE A DESIGN BUILD ENERGY, SORRY, DESIGN BUILD CONTRACTOR. IF YOU HAVE A BUILDING THAT EXISTS, WE CAN MAKE IT BETTER. IF YOU WANT A BUILDING, WE CAN BUILD IT FOR YOU. WE FOCUS PRIMARILY ON ENERGY AND SUSTAINABILITY AND LOOKING FOR WAYS TO MAKE YOUR FACILITIES OPERATE MORE EFFICIENTLY AND WITH MORE COMFORT FOR THOSE INSIDE. OUR TEAM IS FOCUSED IN THE SOUTHWEST. I'VE GOT TO HOP A FLIGHT BACK TO DENVER, BUT THE REST OF THE FOLKS THAT YOU SAW ON THAT SLIDE ARE ALL BASED HERE IN THE DALLAS AREA. SO JUST DOWN THE STREET FROM DESOTO. BUT WE ARE PART OF A PARTNERSHIP WITH ENERGY SYSTEMS GROUP THAT SPANS COAST TO COAST. SO YOU HAVE LOCAL EXPERTS THAT KNOW THE TYPE OF FACILITIES AND THE TYPE OF CLIMATE THAT YOU'RE OPERATING IN. AND KNOW THE LOCAL CONTRACTOR ENVIRONMENT. BUT WE HAVE A TEAM AND SUPPORT THAT STRETCHES ACROSS THE COUNTRY. SO WE'RE DRAWING FROM A DEEP BENCH OF EXPERTS IN FACILITIES. WHAT WE'RE DOING FOR YOU AS DOCTOR WILLIAMS INTRODUCED, IS WE'RE DOING WHAT'S CALLED AN INVESTMENT GRADE AUDIT, WHICH EVENTUALLY LEADS TO AN ENERGY PERFORMANCE CONTRACT. SO WHAT IS THAT AGAIN? I SAID WE ARE A DESIGN BUILD. GENERAL CONTRACTOR. IF YOU HAVE A BUILDING, WE FIND A WAY TO MAKE IT OPERATE MORE EFFICIENTLY OR MORE EFFICIENTLY. IT'S A BIT OF AN EYE CHART UP THERE AND I THINK HOPEFULLY YOU HAVE A PRINTED OUT COPY, BUT ALL SORTS OF DIFFERENT AREAS IN YOUR BUILDINGS WHERE THERE'S OPPORTUNITY TO FIND MORE IMPROVEMENT FOR ENERGY CONSERVATION, MORE IMPROVEMENT FOR THERE, FOR OCCUPANT COMFORT, ALL THESE DIFFERENT AREAS THAT WE CAN LOOK AT. THE FOCUS OF WHAT WE DO IS WE DON'T LIKE TO CALL IT WASTE, BUT OPPORTUNITY. WE KNOW THAT ON AVERAGE, FACILITIES ARE SPENDING 25 TO 30% OF THEIR UTILITY BILLS ON OPERATIONS AND MAINTENANCE COSTS, ON THINGS THAT DON'T NEED TO BE SPENT. OSTENSIBLY SIMPLE THINGS LIKE WHAT YOU'VE ALREADY STARTED DOING IN YOUR BUILDINGS, WHICH IS UPGRADING FROM YOUR FLUORESCENT LIGHTING TO LED. YOU'RE CUTTING THE ENERGY COSTS FROM 70 TO 80% BY DOING THOSE UPGRADES. WHAT WE LIKE TO DO IS SAY THE MONEY THAT YOU WOULD HAVE BEEN SPENDING ON THE UTILITY. WE'RE NOW REINVESTING IN YOUR FACILITY BY GIVING YOU AN UPGRADE THAT'S MORE ENERGY EFFICIENT. AND THAT PAYS FOR ITSELF OVER THE LIFE OF THE PROJECT. ENERGY PERFORMANCE CONTRACTING, AS THE SLIDE SAYS, HAS BEEN AROUND FOR ABOUT 40 YEARS. THE FEDERAL GOVERNMENT DOES IT. ALL 50 STATES DO IT. AND THAT BASIC CONCEPT IS, AS WE WALKED IN HERE THIS EVENING AND EXPERIENCED SOME HUMIDITY IN THE ROOM, WE CAN FIND A WAY TO UPGRADE YOUR HVAC AND PAY FOR THAT THROUGH ENERGY SAVINGS. SO WHAT WE DO IS WE LIKE TO CALL IS A BUNDLE OF MEASURES AND LEVERAGING DIFFERENT FUNDING STREAMS. WE STARTED WITH THE HVAC. IT'S QUITE EXPENSIVE TO DO [00:45:05] THOSE UPGRADES. AND THERE'S NOT NECESSARILY THE GREATEST ENERGY OR MAINTENANCE SAVINGS, BUT THERE ARE SOME. WE ALSO KNOW THAT THERE IS A LOOK TO IMPROVE ON THE ROOF OF THIS FACILITY. JUST AS AN EXAMPLE, VERY LITTLE ENERGY SAVINGS. BUT YOU KNOW, YOU NEED A ROOF AND IT'S QUITE EXPENSIVE. LET'S GET THAT SCALE TIP IN BACK THE OTHER WAY. AS ANOTHER EXAMPLE, I MENTIONED LED LIGHTING, RELATIVELY INEXPENSIVE UPGRADES, SIGNIFICANT ENERGY SAVINGS. SO IT HELPS YOU TO BRING THAT BALANCE MORE ALONG. AND THEN FINALLY LOOKING AT THINGS LIKE RENEWABLES, CONTROLS AND OTHER MEASURES AND WHAT I LIKE TO CALL OTHER PEOPLE'S MONEY, THAT'S REBATES FROM THE UTILITY. THAT'S GRANTS FROM THE FEDERAL GOVERNMENT AND DIFFERENT INCENTIVES AND THEN LOOKING AT WHAT YOU MIGHT HAVE ALREADY BUDGETED IN YOUR CAPITAL IMPROVEMENT PLAN AND BRINGING THOSE MEASURES FORWARD. SO YOU MIGHT HAVE BUDGETED $1 MILLION FOR A PARTICULAR UPGRADE. WE CAN GET YOU 1.5 TO $2 MILLION WORTH OF PROJECT BY BALANCING THE ENERGY SAVINGS INTO THAT. WE'RE THANKFUL TO BE HERE EARLIER TODAY TO MEET WITH YOUR STAFF AND CITY MANAGER, TO GO OVER KIND OF WHERE WE ARE IN THE PROCESS. WHAT'S REALLY COOL ABOUT ENERGY PERFORMANCE CONTRACTING IS THAT P THE PERFORMANCE. SO THIS PROCESS WE'RE DOING AN ASSESSMENT TO FIND OUT WHAT DO YOU NEED IN YOUR BUILDINGS. WHAT'S THE OPPORTUNITY FOR ENERGY SAVINGS. AND THEN WE'LL DESIGN IT AND BUILD IT WITH YOU IN AN ITERATIVE PROCESS. AND FINALLY PROVE IT THAT P AND PERFORMANCE MEANS THAT WE ARE ACTUALLY GUARANTEEING TO YOU. IT'S REALLY COOL WHEN YOU KNOW A CAR SALESMAN SAYS, YEAH, AND IF YOU PUT THIS ADDITIVE IN YOUR GAS TANK, YOU'RE GOING TO SAVE 10% ON YOUR GAS. WELL, I'M GOING TO SAY THAT I'M GOING TO PROVE IT. AND IF I DON'T DO IT, WHAT OUR FIRM DOES IS WRITE YOU A CHECK FOR THE DIFFERENCE. SO WE REALLY STAND BEHIND THAT GUARANTEE WHEN WE SAY THAT WE'RE GOING TO IMPROVE YOUR FACILITIES AND HAVE ENERGY SAVINGS TO PAY FOR IT, WE PROVE THAT. AND WE WORK WITH THE STATE AGENCY SACO AS A THIRD PARTY TO VERIFY THAT WE'RE ACTUALLY SAVING THOSE FUNDS OVER THE COURSE OF PAYING FOR THAT LOAN TO PAY FOR YOUR FACILITY UPGRADES. THAT'S THE GENERAL CONCEPT OF AN INVESTMENT GRADE AUDIT AND AN ENERGY PERFORMANCE CONTRACT. BUT WHAT ABOUT YOUR PROJECT? WHAT ABOUT THE BEAUTIFUL CITY? SO THIS YOU KNOW, THIS IS YOUR SLIDE. THIS IS YOU. THIS IS WHAT WE'RE HERE TO DO IS BE IN SUPPORT OF THAT. WE WORKED WITH YOUR STAFF TO COME UP WITH A PROJECT VISION. AS YOU'VE SEEN THROUGH THAT PRESENTATION, WE'RE BALANCING PUTTING TOGETHER MEASURES WITH ENERGY SAVINGS AND FINDING FUNDS THAT PAY FOR THEM. WE'RE GOING TO LEVERAGE YOUR CAPITAL IMPROVEMENT FUNDS. AND YOU KNOW, DOCTOR WILLIAMS HAS ALREADY WORKED WITH ONE OF OUR TEAMMATES, CANYON, TO COME UP WITH A QUARTER MILLION DOLLAR GRANT. SO WE'VE ALREADY FOUND THAT FREE MONEY THAT'S OUT THERE, OTHER PEOPLE'S MONEY OUT THERE TO HELP FUND WHAT YOUR STAFF HAS GIVEN US AS THE KEY SUCCESS FACTORS. A COUPLE MONTHS AGO, WE HAD ALL THE DIRECTORS COME TOGETHER AND SAY, WHAT'S MOST IMPORTANT TO YOU RIGHT NOW? PUT TOGETHER THIS LIST EARLIER TODAY WE TOOK THIS LIST AND WE TURNED THAT INTO A MATRIX OF DIFFERENT MEASURES OF SPECIFIC ACTIONABLE ITEMS. IT'S MOST IMPORTANT TO YOUR DIRECTORS AND STAFF THAT WILL LATER RECOMMEND TO YOU, BUT AGAIN, THIS IS YOUR CITY'S PROJECT. YOUR STAFF IS WORKING ITERATIVELY WITH US. WE'RE NOT JUST HANDING YOU A PROJECT AND SAY, HEY, PLEASE DO THIS. WE WANT TO MAKE SURE WE'RE MEETING THE NEEDS AND THE PRIORITIES OF EACH CITY MEMBER AND THE RESIDENTS ALONG HERE. WE'VE HAD SOME REALLY COOL INITIAL OBSERVATIONS, WHAT I LIKE TO CALL GREAT OPPORTUNITIES. WE ALREADY KNOW THAT THE CITY HAS BOUGHT IN ON DOING LED LIGHTING. WE'VE SEEN IT THROUGH A NUMBER OF FACILITIES, BUT IT HASN'T BEEN COMPLETE. WHAT WE'RE GOING TO BE ABLE TO DO IS DO COMPREHENSIVE RETROFITS SO THAT YOU HAVE CONSISTENT LIGHTING THROUGH ALL YOUR FACILITIES. EVERYTHING'S BRAND NEW AND IT'S GOT WARRANTY AND IT'S ON A CONSISTENT SCHEDULE FOR REPLACEMENT. 15 TO 20 YEARS FROM NOW, YOU HAVE THERMOSTATS EVERYWHERE. EVERYONE KNOWS THAT, HEY, YOU CAN HOLD A LIGHTER UNDER YOUR THERMOSTAT WHEN IT GETS A LITTLE TOO HOT IN YOUR ROOM, AND YOU CAN MAKE THAT AIR CONDITIONER KICK ON, OR PUT A BAG OF ICE ON IF YOU NEED THE HEAT TO KICK UP. WELL, WE CAN FIX THOSE PROBLEMS. WE CAN MAKE SURE THAT WE'RE OPERATING EACH FACILITY TO BE AS EFFICIENT AS POSSIBLE AND ACTUALLY MEETING THE COMFORT THAT YOU NEED. THAT'S ONE OF THE CRITICAL UPGRADES THAT WE'VE SEEN THROUGHOUT YOUR FACILITIES, THAT YOUR STAFF HAS ENCOURAGED US TO FOCUS ON. IT DOESN'T MATTER IF YOU HAVE A GREAT HVAC SYSTEM, IF ALL THE AIR IS GOING OUT THE DOOR. SO SEALING UP THE BUILDINGS, PUTTING IN WEATHERSTRIPPING, IMPROVING YOUR YOUR INSULATION. ALSO HIGH EFFICIENCY TRANSFORMERS. WHEN YOU HAVE POWER THAT COMES FROM THE POWER POLE, THAT'S NOT ACTUALLY WHAT YOU PLUG YOUR YOUR YOUR APPLIANCE INTO. SO THERE ARE TRANSFORMERS THAT STEP THAT POWER DOWN. MOST OF THEM ARE THE SAME AGE AS THE FACILITY THAT YOU'RE IN. BY UPGRADING THEM, WE CAN INCREASE THEIR EFFICIENCY 15 TO 20 PERCENTAGE POINTS AND INCREASE THE LIFE OF YOUR ELECTRICAL DISTRIBUTION SYSTEM. AND WE'VE ALSO SEEN A LOT OF INTEREST FROM YOUR STAFF IN RENEWABLE ENERGY. WE HAVE RENEWABLE ENERGY ON THE FACILITY THAT WE'RE IN RIGHT NOW, BUT IT'S NOT FUNCTIONING. AND THAT'S ONE OF THE THINGS THAT WE KNOW THAT THIS COMMUNITY HAS A COMMITMENT TO RENEWABLE ENERGY. SO LET'S START WITH WHERE WE ARE RIGHT NOW. GET THAT SYSTEM UP AND RUNNING AND THEN LOOK TO OTHER OPPORTUNITIES, BE THEY PARKING STRUCTURES WITH A YOU KNOW, CARPORTS AND COMBINED EV CHARGING OR GOING BEYOND THAT. AND COMBINING THAT EFFICIENCY. SORRY, THAT RENEWABLE ENERGY WITH RESILIENCY. IT'S BEEN AWESOME TO TALK TO BOTH YOUR POLICE CHIEF AND YOUR FIRE [00:50:02] CHIEFS ABOUT, YOU KNOW, WE CAN'T HAVE A STORM AND OUR FIRE DEPARTMENT GOES DOWN. WE CAN'T HAVE A STORM IN OUR POLICE DEPARTMENT GOES DOWN. LET'S PAIR THAT WITH GENERATORS AND BATTERY ENERGY STORAGE. AND ANOTHER MEASURE IS ALSO LOOKING AT WATER CONSERVATION, MAKING SURE THAT WE'RE USING THE RESOURCES THAT HAVE BEEN GIVEN TO US AND THE MOST EFFICIENT MANNER. AGAIN, WE TALK ABOUT OTHER PEOPLE'S MONEY, BUT THERE'S ALSO THE MONEY THAT WE HAVE OURSELVES IN THE CITY. AND THEN COMBINING WITH THAT WITH WHAT WE CALL A TAX EXEMPT LEASE PURCHASE OR A TLP. AND THAT'S WHERE WE TAKE THOSE SAVINGS THAT ARE GATHERED OVER 20 YEARS, AND WE FINANCE THEM UP FRONT, AND WE PAY THROUGH THEM THROUGH THE ENERGY SAVINGS, LOTS OF DIFFERENT STUFF. WE'RE GOING TO HOPEFULLY BE INVITED BACK TO TALK TO YOU ABOUT SPECIFIC FUNDING MEASURES. ONCE WE HAVE A FULL PROJECT THAT'S COME TOGETHER WITH THE TEAM, AND WE'LL BE ABLE TO TALK ABOUT THAT FURTHER, WE'VE ALREADY STARTED TO PUT TOGETHER JUST A QUICK LOOK AT WHAT THAT MIGHT BE. SO WE'VE GOT A NUMBER OF FUNDS SET ASIDE ALREADY FOR RENOVATIONS, TOWN CENTER, HVAC AND SOME UPGRADES TO THE LIBRARY LIGHTING. AGAIN, WE ALREADY MENTIONED THAT WE WERE ABLE TO GET AHOLD OF A QUARTER MILLION DOLLARS IN SACO FUNDING. AND THEN THERE'S ANOTHER 115 IN ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANTS. IF WE'RE LOOKING AT DOING BATTERY ENERGY STORAGE OR RENEWABLE ENERGY, THE INFLATION REDUCTION ACT ALLOWS US TO GET 30 TO 50% REDUCTION ON OUR UPFRONT COSTS. WE'VE DONE SOME MODELING THAT SHOWS THAT WE HAVE SIGNIFICANT INCENTIVES AND BONUS OPPORTUNITIES FROM THE IRA. ENCORE AND VOLTUS ALSO PROVIDE US WITH DIFFERENT OPPORTUNITIES FOR INCENTIVES FOR, HEY, YOU'RE GOING TO REDUCE THE LOAD. THAT'S IN MY ELECTRIC GRID. I'D LIKE TO INCENTIVIZE YOU TO REDUCE THAT LOAD. SO WE'VE BEEN BEGINNING TO EXPLORE THAT. AND THOSE FUNDS ARE BETWEEN 20 TO $250,000 THAT ARE AVAILABLE. AND THEN FINALLY, THE BASIS OF WHAT WE'RE TALKING ABOUT AND THAT'S THE UTILITY AND OPERATION AND MAINTENANCE SAVINGS THAT COME FROM UPGRADING YOUR, YOUR EQUIPMENT. AND THAT'S GOING TO BE THE, THE BONES, THE REAL MEAT OF PAYING FOR YOUR PROJECT. JUST SOME QUICK EXAMPLES AND I'LL BE DOWN HERE IN A MOMENT. WE HAVE SOME OTHER PARTNERS THAT ARE OUT IN THE SOUTHWEST WHERE WE'VE BEEN ABLE TO FIND SIGNIFICANT ENERGY SAVINGS. WE'VE BEEN ABLE TO FIND LOTS OF GRANTS, 31% REDUCTION IN ENERGY COSTS HERE. SOLAR WAS INVOLVED IN THAT NEEDED TO DO HVAC UPGRADES. SO, YOU KNOW, THERE'S HUNDREDS OF THESE PROJECTS AROUND THE COUNTRY. I JUST WANTED TO HIGHLIGHT ONE THAT WE'VE DONE IN NEW MEXICO. AND THEN THE NASA GLENN CENTER UP IN TOLEDO, OHIO. ANOTHER $15 MILLION PROJECT, MASSIVE REDUCTION IN DEMAND THROUGH ENERGY CONSERVATION AND RENEWABLE ENERGY. AND OPERATION SAVINGS OF OVER $25 MILLION OVER THE COURSE OF 20 YEARS. SO WHAT WE'RE DOING IS WORKING WITH YOUR STAFF TO UNDERSTAND FULLY WHAT YOUR FACILITY NEEDS ARE, WHAT YOUR HOPES ARE FOR THE FUTURE, AND COMING TOGETHER TO TRY AND BUILD A PROJECT THAT WILL FUND ITSELF AND MEET THE NEEDS, AND LEAVE BEHIND A BEAUTIFUL CITY THAT DE SOTO WANTS FOR ITS RESIDENTS. THANK YOU. QUESTIONS. THANK YOU AND PLEASE TELL ME HOW TO PRONOUNCE YOUR LAST NAME AGAIN OF WARRIOR. YOU SAID IT. I'M SORRY. THANK YOU SO MUCH, SIR, FOR YOUR MEDITATION IS LIKE, CAN I, CAN I PRONOUNCE EVERY. AND I'M LIKE, JUST NEPHEWS. OKAY. THANK YOU SO MUCH FOR YOUR PRESENTATION COUNCIL. ARE THERE ANY QUESTIONS THAT WE WILL DO? ROUNDS FOR THIS AS WEL? I SEE NO LIGHTS. MR. CITY MANAGER OR DOCTOR WILLIAMS, CAN YOU PLEASE LET COUNCIL KNOW IF YOU'RE NEEDING ANY ASSISTANCE OR DIRECTION? YES. I THINK WE'RE GOOD, BUT I AGAIN, I REALLY WANT TO RECOGNIZE YOU OUT FOR THEIR PARTNERSHIP WITH US. THEY'VE DONE A FANTASTIC JOB AND ABSENT A FACILITIES PLAN, I THINK THEY'VE NOW NOT ONLY THEY HAVE ACTUALLY DONE THE GROUNDWORK AND THE FOUNDATION FOR A FUTURE FACILITIES PLAN, BUT WITH THE HELP OF DOCTOR WILLIAMS, THEY THEY'VE SET THE GOAL FOR US TO ADDRESS, ADDRESS THESE TYPES OF ENERGY SAVINGS PROACTIVELY. THANKS. MAGIC. SURE. THANK YOU, MR. GODFREY. YES. COUNCIL MEMBER RAFAEL, YOU HAVE TWO MINUTES. YES. QUICK QUESTION. SO YOU MENTIONED BATTERY STORAGE, AND I DON'T REMEMBER IF YOU MENTIONED MICROGRIDS AND ALL OF THAT. AND SO I GUESS MY QUESTION IS, WHAT DOES THAT LOOK LIKE FOR US? WILL THIS COME BACK TO US AS A CIP CAPITAL IMPROVEMENT PROJECT? BECAUSE THAT'S PRETTY SIGNIFICANT WHEN WE START TO GET INTO THE BATTERY STORAGE AND THINGS LIKE THAT. THERE'S ONE QUESTION. THE NEXT ONE WAS JUST RELATED TO. YOU HAD MENTIONED THAT WE HAVE RENEWABLE ENERGY THAT'S NOT WORKING. ARE YOU TALKING ABOUT THE SOLAR THAT WE HAVE? IT'S NOT WORKING. YES, MA'AM. OKAY. AND WE WILL COME BACK TO THE CITY COUNCIL WITH ANY CIP PROJECT. YES. BUT THAT THAT WOULD BE SPECIFIC TO EACH FACILITY. OKAY. SO THIS, THIS ENERGY RENEWAL OR YOU KNOW, SAVINGS. WELL THIS WILL COME BACK AS CIP OR WILL THIS COME BACK AS SOMETHING RELATED TO BUILDINGS COMING FROM THE GENERAL FUND? I GUESS I'M TRYING TO UNDERSTAND IT. IT WILL COME BACK AS IN SEVERAL ASPECTS AS CIP, THEY COULD BE RELATED TO GENERAL FUND OR GRANTS THAT WE'VE RECEIVED. OKAY. AND SO IN GOING AFTER THOSE GRANTS WILL BE GOING AFTER THOSE GRANTS, I [00:55:05] GUESS ONCE WE'VE DESIGNED A PLAN, BUT THEN THE REMAINDER WILL HAVE TO GO. SO HERE'S MY CONCERN. LET ME JUST GET TO THE POINT. PART OF MY CONCERN IS WITH WITH THE ADMINISTRATION CHANGING IN IN EPA, YOU KNOW, A LOT OF A LOT OF THINGS ARE GOING TO KIND OF GO AWAY. AND SO ONE OF THE THINGS I DIDN'T SEE AND MAYBE I MISSED IT WAS ELECTIVE PAY, YOU KNOW, THAT'S CODIFIED IN TAX CODE. AND SO JUST MAKING CERTAIN THAT WE GO AFTER THOSE. BUT THEN FOR CITY MANAGEMENT, JUST ENSURING THAT WE UNDERSTAND THAT WHERE THE MONEY WHERE THIS IS COMING FROM, BECAUSE THIS IS A SIZABLE PROJECT, WORTHWHILE PROJECT FOR SURE, BUT DEFINITELY A SEISMIC PROJECT. I JUST WANT TO MAKE SURE I UNDERSTAND. THANK YOU, MADAM MAYOR. CERTAINLY. SO THIS WILL BE A PROJECT THAT IS A BLEND BETWEEN CIP. AND WHAT WE'RE GOING TO DO IS GIVE YOU A COUPLE OF OPTIONS. ONE THAT HOPEFULLY IS COMPLETELY SELF-FUNDING AND THAT IS PAID THROUGH A TAX EXEMPT LEASE PURCHASE. AND IT'S OVER THE YEARS THROUGH YOUR DEFERRED COSTS. THERE IS ALSO AN OPPORTUNITY TO TAKE YOUR EXISTING CIP BUDGET AND REDIRECT IT. SO IF YOU ALREADY HAVE MONEY ALLOCATED FOR A ROOF, PUT IT INTO THIS PROJECT AND THEN WE MIGHT ALSO SAY, HEY, THIS IS THE WISH LIST FROM YOUR STAFF. LET'S PRIORITIZE. ARE THERE OTHER DOLLARS AVAILABLE THAT WE'D WANT TO CONTRIBUTE TO CIP? BUT WE'RE GOING TO BE BRINGING THAT TO YOU AGAIN IN AN ITERATIVE PROCESS. SO PROBABLY COMING BACK IN FEBRUARY AND AGAIN IN MAY FOR THAT. WITH RESPECT TO ELECTIVE PAY, THAT WAS WHAT I WAS MENTIONING ABOUT THE INFLATION REDUCTION ACT. I'M GETTING THIS QUESTION A LOT RIGHT NOW. CONGRESS DOESN'T MOVE THAT FAST, AND NOBODY LIKES TO TAKE FREE MONEY AWAY FROM PEOPLE, SO CAN'T PROMISE THAT THAT STUFF'S GOING TO BE THERE IN THE FUTURE. BUT WE WANT TO MOVE DECISIVELY AND QUICKLY TO BE ABLE TO ACT UPON IT. AS LONG AS THOSE FUNDS ARE AVAILABLE FOR US, AND WE'RE GOING TO BUILD YOU A MODEL THAT CAN WORK WITH AND WITHOUT CERTAIN FUNDS BEING AVAILABLE. THANK YOU. COUNCIL MEMBER PARKER. THANK YOU, MADAM MAYOR. THANK YOU FOR YOUR PRESENTATION. AND YOU KNOW, IT'S FUNNY BECAUSE THAT'S EXACTLY THE QUESTION I WAS ABOUT TO ASK. SINCE WE DO HAVE A NEW PARADIGM HAPPENING, I DO WANT TO ALSO ASK, WHAT'S THE TIME FRAME FOR YOU ALL TO ACTUALLY COME BACK WITH THE PLAN? YES. SO WE'RE AT AN INTERESTING JUNCTURE, JUST WITH THE HOLIDAYS ARRIVING RIGHT NOW. SO WE ARE LOOKING TO WE'RE AT A 30% RIGHT NOW WHERE WE HAVE JUST PUT TOGETHER. HERE'S THE WISH LIST OF EVERYTHING THAT WE WANT. LET'S PRIORITIZE IT BETWEEN NOW AND WHAT WE CALL OUR 60% MEETING. WE'RE PLANNING TO DO THAT IN MID-FEBRUARY OR EARLY MARCH, AND AT THAT POINT WE'LL HAVE 2 OR 3 SCENARIOS WHERE WE'RE COMPARING HERE ARE THE DIFFERENT LEVELS. HERE'S A COMPLETELY PAID FOR PROJECT. HERE'S A PROJECT WITH MEDIUM CIP CONTRIBUTION, AND HERE'S A PROJECT THAT'S GOING TO REQUIRE A LARGER AMOUNT OF CAPITAL. WE'RE EXPECTING THAT TO HAPPEN IN MID FEBRUARY, EARLY MARCH IS WHEN WE'D BE COMING BACK WITH THAT. ONCE WE HAVE DIRECTION ON. THIS IS EXACTLY WHAT YOU WANT. IT'D BE ONE MORE MONTH BEFORE WE'RE GIVING YOU A GUARANTEED PRICE, GUARANTEED MAXIMUM PRICE AND A GUARANTEED SAVINGS. AGAIN, THAT'S ANOTHER THING ABOUT PERFORMANCE CONTRACTING. WHEN I SAY IT COSTS THIS MUCH, THERE IS NO CHANGE ORDER. I SAID IT COSTS THAT MUCH. AND THAT'S THE PRICE BECAUSE IT HAS TO PAY FOR ITSELF THROUGH THE SAVINGS THAT I'VE GUARANTEED. SO WE'LL COME BACK HOPEFULLY IN APRIL AND WE'LL HAVE A FINAL PRESENTATION OF A PROJECT THAT MEETS THE NEEDS OF THE STAFF, GUARANTEED PRICING, GUARANTEED SAVINGS. OKAY. AND TWO MORE QUICK THINGS. SO FOR THAT TIME FRAME, YOU'RE SAYING YOU WILL HAVE ASSESSED EVERY BUILDING IN THE CITY OF DESOTO THAT THE CITY OF DESOTO OWNS? NOT EVERY BUILDING. WE HAVE NINE BUILDINGS IN OUR SCOPE SPECIFICALLY, AND THREE PARKS. IT'S ABOUT A QUARTER MILLION SQUARE FEET THAT WERE IDENTIFIED BY THE CITY AS A PRIORITY FOR US TO PUT INTO OUR ENERGY PROJECT. IF THERE IS A REQUEST THAT WE GO TO ALL FACILITIES. I MEAN, I WAS SITTING SPECIFICALLY IN CODY AND I WERE TALKING. WE WERE LIKE, OH, WELL, THERE'S A LOT OF SAVINGS IN PUMPING STATIONS. LIKE, THAT'D BE GREAT TO BE ABLE TO TACKLE SOMETHING LIKE THAT AS WELL. THERE'S ALWAYS OPPORTUNITY. WHAT WE WERE OFFERED WAS THE OPPORTUNITY TO LOOK AT NINE BUILDINGS, BUT THE MORE FACILITIES WE'RE ABLE TO LOOK AT, THE GREATER IMPACT WE CAN MAKE FOR YOU. AND LAST QUICKLY, LAST QUESTION IS THE ACTUAL THE GUARANTEED PRICE THAT YOU'RE TALKING ABOUT IS ACTUALLY THE PRICE THAT IS WITHOUT THAT'S THE UPFRONT COST. THAT'S NOT THE ROI. THAT'S NOT GOING TO TELL US WHAT WE'RE GOING TO RECEIVE BACK. WE WILL PUT TOGETHER AN ENTIRE FINANCIAL PROFORMA THAT SAYS, THIS IS YOUR TURNKEY COST, THAT YOU GO OUT FOR FINANCING FOR, AND THEN WE'LL SHOW EACH YEAR WHAT YOUR ENERGY SAVINGS ARE, AND ADDITIONAL CAPITAL CONTRIBUTIONS WILL RUN THAT MODEL FOR WHATEVER YOU'RE COMFORTABLE WITH 15, 20 OR 25 YEARS. AS LONG AS THE LIFE OF THE EQUIPMENT EXCEEDS HOW LONG YOU'RE PAYING THE LOAN FOR. BUT YOU'LL HAVE A COMPLETE FINANCIAL MODEL THAT SHOWS WHAT YOUR ROI IS, HOW LONG IT TAKES TO PAY BACK, AND IF YOU HAVE AN INTERNAL RATE OF RETURN THAT YOU'RE TARGETING. THANK YOU. COUNCIL MEMBER PARKER THOUGHT I SAW ANOTHER LIGHT. OKAY. HEARING NONE AGAIN, I WANTED TO JUST REITERATE. IS THERE ANY ADDITIONAL DIRECTION OR WAS THIS OF INFORMATION? INFORMATION? OKAY. THANK YOU SO MUCH. THANK YOU ALL FOR BEING HERE. WE ENJOYED YOU. THE ONLY THING THAT I WOULD ADD IS, IS IN BETWEEN NOW AND THEN, IF ANY OF YOU HAVE ANY QUESTIONS SPECIFICALLY ABOUT WHAT WE'RE WORKING ON, YOU CAN ALWAYS REACH OUT TO US, GO THROUGH MAGIC, GO THROUGH DOCTOR WILLIAMS. IF YOU WANTED TO UNDERSTAND MORE ABOUT WHAT WE'RE DOING BEFORE WE HAVE OUR NEXT MEETING, WE'RE AVAILABLE ANYTIME YOU NEED US. OKAY. THANK YOU. [g. Presentation of FY 2024 Annual Investment Report & Investment Policy Update] [01:00:04] THANK YOU KINDLY. AT THIS TIME IS THOMAS WILL HAVE ITEM G TWO G WITH THE ASSESSMENT REPORT PRESENTATION OF THE FISCAL YEAR 2024 ANNUAL INVESTMENT REPORT AND INVESTMENT POLICY UPDATE. MAKING. THE INTRODUCTION IS TRACY CORMIER, FINANCE DIRECTOR. GOOD EVENING MAYOR COUNCIL. I WOULD LIKE TO INTRODUCE TEN PENTIUM II INVESTMENT ADVISOR FOR THE CITY WHO WILL BE PRESENTING OUR ANNUAL INVESTMENT REPORT ALONG WITH OUR UPDATED INVESTMENT POLICY. THANK YOU. TRACY. GOOD EVENING MAYOR. COUNCIL MEMBERS, GOOD TO SEE EVERYONE AGAIN. SO THIS IS OUR ANNUAL REVIEW OF THE CITY'S PORTFOLIO AND HOW IT IS DONE IN KIND OF A LOOK BACK AS HOW IT'S COMPARED TO THE PREVIOUS YEAR. SO THE PORTFOLIO IS UP QUITE A BIT DUE PRIMARILY TO THE LARGE BOND ISSUE BOND PACKAGE THAT WAS PASSED AND FUNDED IN THIRD, FOURTH QUARTER OF THE FISCAL YEAR. SO THAT SIGNIFICANTLY INCREASED THE PORTFOLIO FROM 141 MILLION TO 196 MILLION. AND THEN THE FISCAL THE INTEREST EARNED OVER THE YEAR ALSO INCREASED MORE BECAUSE OF THE HIGHER RATES, BECAUSE OF THE BOND PACKAGE DIDN'T REALLY COME IN UNTIL THE LAST QUARTER, BUT INTEREST INCOME INCREASED FROM 6.6 MILLION TO 8.2 MILLION. SO NICE. NICE INCREASE FOR THE CITY'S REVENUE THERE. AND THEN THIS IS A REFLECTION OF HOW THE INTEREST RATES CONTINUE TO INCREASE FROM 2023 THROUGH 2024. AND IT KIND OF PAUSED IN JULY OF JULY OF 23 IS WHERE IT PAUSED CARRIED THROUGH 2024. SO FOR ABOUT A LITTLE OVER A 12 MONTH PERIOD, RATES WERE VERY STABLE, STAYED THE SAME. AND SO THE CITY'S PORTFOLIO INCREASED FROM 4.53% TO 5.22% YEAR OVER YEAR. AND THEN THIS IS JUST A SNAPSHOT OF WHERE CURRENT INTEREST RATES ARE TO GIVE YOU AN IDEA OF WHERE THE MARKET IS. SO RIGHT NOW, OVERNIGHT FUNDS ARE EARNING 4.5%. THAT'S THE LOWER END OF THE FED FUND RATE. IT'S BETWEEN 4.75 AND 4.5. IS THE CURRENT FED FUNDS RANGE. TEX POOL IS A LITTLE BIT HIGHER RIGHT NOW JUST BECAUSE THE RATES WERE RECENTLY REDUCED. SO IT'LL TAKE THOSE RATES WILL START TO COME DOWN AS THOSE INVESTMENTS THAT WERE AT THE HIGHER RATES MATURE AND ARE REPLACED WITH THE LOWER RATES. SO YOU'LL SEE TEX POOL COME DOWN PROBABLY A LITTLE BIT UNDER THAT 4.5% MARK. AND THEN THE LAST SECTION THERE IS JUST KIND OF A LOOK AT INVESTMENT VEHICLES THAT ARE CURRENTLY AVAILABLE TO THE CITY. CITY TYPICALLY INVEST FOR THREE SIX MONTHS, 12 MONTH INCREMENTS. AND AGAIN YOU CAN SEE THAT WE'VE GOT A DOWNWARD SLOPING YIELD CURVE, WHICH IS UNUSUAL. IT LOOKS LIKE THAT MAY BE ABOUT TO CHANGE SOON, BUT ALL OF THEM ARE. IT'S A FAIRLY FLAT RATE. NOT A LOT OF DIFFERENCE BETWEEN THE RATES. THIS IS A LOOK AT WHERE THE FED FUND RATES HAVE BEEN OVER THE LAST TWO YEARS. SO IN THE BEGINNING OF 2023, THE FED FUNDS RATE WAS BETWEEN FOUR AND A QUARTER AND 4.5%. AND YOU CAN SEE WE'VE ALMOST COME BACK TO THAT THIS YEAR. SO VERY FLAT FROM JULY OF 23 UNTIL SEPTEMBER OF 24 WHEN THEY MADE THE FIRST RATE CUT, AND THEN TWO DAYS AFTER THE ELECTION, THEY CUT IT AGAIN, ANOTHER 25 BASIS POINTS. AND THE PROJECTION IS RIGHT NOW KIND OF WHAT THE MARKET EXPERTS THINK IS THAT IN 2025, CALENDAR YEAR WILL PROBABLY GET 75 MORE BASIS POINTS LOWER, AND THEN IN 2026, IT STABLES OFF TO JUST 25 BASIS POINTS. SO OVER THE NEXT TWO YEARS, ABOUT 100 BASIS POINTS LOWER THAN WHERE WE ARE RIGHT NOW. SO FAIRLY STABLE, BUT SOMEWHAT DECLINING INTEREST RATES. AND THEN THIS IS JUST A LOOK AT THE YIELD CURVE. AND YOU SEE THE RED THE RED DASHED DASHED LINE IS THE MOST CURRENT. SO YOU CAN SEE OVERALL INTEREST RATES ARE LOWER THAN WHERE THEY WERE COMPARED TO SEPTEMBER A YEAR AGO, WHICH IS THE BLUE LINE. AND THEN THE GREEN LINE IS JUST EVEN WHERE IT WAS THREE MONTHS AGO. SO THE IMPACT OF THE FED RATE CUTS IS, IS LOWERING THAT YIELD CURVE. THIS IS A LOOK AT THE CITY'S PORTFOLIO COMPOSITION. SO QUITE A FEW INVESTMENTS IN SECURITIES IN 2023. IT'S LESS SO IN 2024. BUT A LOT OF THAT'S BECAUSE THE BOND FUNDS CAME IN. AND SO THOSE HAVE NOT BEEN REALLOCATED. AND THAT THAT SPIN RATE IS GOING TO IMPACT HOW THOSE FUNDS ARE INVESTED, AS WELL AS THOSE PROJECTS. FUND. THIS IS A QUICK LOOK AT THE CITY'S INVESTMENT POLICY COMPLIANCE. JUST MAKING SURE THAT ALL OF THE INVESTMENTS ARE IN COMPLIANCE WITH THE POLICY. AND THEY ARE AND THAT'S THE SNAPSHOT OF THE KIND OF THE INVESTMENT PORTFOLIO REVIEW. ANY QUESTIONS ON THAT? BEFORE WE LOOK AT THE CHANGES TO THE INVESTMENT POLICY. THANK YOU SO MUCH FOR THAT PRESENTATION. COUNCIL. ARE THERE ANY QUESTIONS REGARDING THE INVESTMENT POLICY, ANNUAL REVIEW. NO QUESTIONS ON THAT. OKAY. SO YOU DO HAVE THE INVESTMENT POLICY REVIEW. SO [01:05:01] THIS WILL GO THIS YOU'LL VOTE ON THIS TOMORROW. IT'LL BE ON THE CONSENT AGENDA I BELIEVE. AND POLICY IS IN REALLY GOOD SHAPE. SO REALLY JUST TWO MAIN CHANGES ON THREE DIFFERENT PAGES. SO ONE WE'RE ADDING WORDING SO THAT THE CITY CAN INVEST IN CREDIT UNIONS IF THEY OFFER AN INTEREST RATE THAT'S ATTRACTIVE ON CERTIFICATES OF DEPOSIT. WE'VE HAD A COUPLE OF CREDIT UNIONS THAT HAVE KIND OF STEPPED IN AND REALLY HAD SOME VERY COMPETITIVE RATES, SO WE WANTED TO ADD THE LANGUAGE TO THE POLICY THAT WOULD ALLOW THE CITY TO TAKE ADVANTAGE OF THOSE RATES. SO THAT'S ON PAGE TWO. AND THEN ON PAGE FOUR WE ARE ADDING ANOTHER POSITION TO THE AUTHORIZED INVESTMENT OFFICER. SO WE'RE ADDING THE ASSISTANT DIRECTOR OF FINANCE. SO THAT WOULD BE LAKITA SUTTON. AND SO THAT WOULD ADD HER TO TRACY CORMIER. AS THE CORMIER IS THE INVESTMENT OFFICER FOR THE CITY OF DESOTO. SO THAT'S ON PAGE FOUR. AND THEN THE LAST ONE AGAIN GOES BACK TO THAT CREDIT UNION. SO IT'S JUST UPDATING THE LANGUAGE THERE TO INCLUDE THE CREDIT UNION. I THINK THERE WERE A FEW OTHER GRAMMATICAL CHANGES, BUT THOSE WERE REALLY MINOR. THESE WERE REALLY THE ONLY SUBSTANTIVE CHANGES IN THE POLICY. SO. THANK YOU. NOW DO WE HAVE QUESTIONS? YES. COUNCIL MEMBER CHISOLM THANK YOU, MADAM MAYOR. THANK YOU SO MUCH FOR YOUR PRESENTATION. I DID HAVE SOME QUESTIONS ABOUT THE POLICY AS I DID MY OWN RESEARCH. OKAY. SO UNDER THE UNDER SECTION SEVEN, THE DIVERSIFICATION, THAT'S THE POOL PERCENTAGE. AND SO MY QUESTION IS THAT A LOT OF THE POLICIES THAT I READ AROUND OTHER CITIES ALSO LISTED THE MAXIMUM MATURITY, BUT WE DON'T LIST THAT ON OURS. IS IT POSSIBLE TO ADD THAT COULD BE ADDED? YES, I THINK THE TERM IS BROKEN OUT. SO A LOT OF TIMES IT KIND OF DEPENDS ON THE TYPE OF INVESTMENT YOU HAVE. SO SOMETIMES IF YOU HAVE BOND FUNDS YOU'VE GOT DIFFERENT STRATEGIES. SO WE'VE BROKEN IT OUT INTO DIFFERENT STRATEGIES. SO YOU'VE GOT YOUR DAILY OPERATING FUNDS. AND THEN SOMETIMES WHEN YOU'VE GOT LIKE YOU'VE GOT THE BIG BOND ISSUE AND SOMETIMES YOU'VE GOT A LONGER PERIOD OF TIME. SO YOU MAY FOR THOSE, THOSE MAY BE UP TO LIKE THREE YEARS, WHEREAS THE OPERATING FUNDS MAY BE TWO YEARS. SO I THINK THAT'S WHY WE HAVE TYPICALLY LEFT THAT LANGUAGE OUT IN THAT PART. BUT IT COULD BE INCLUDED IF YOU WANTED. THAT ADDED THERE. I GET THAT WITH EACH DIFFERENT TYPE OF INVESTMENT, TYPE OFFERS A DIFFERENT MATURITY LEVEL. BUT BUT JUST IN THE CONSISTENCY OF WHAT I SAW FROM OTHER CITIES, I THOUGHT THAT IT WOULD BE A GREAT ADD, ESPECIALLY FOR ANY NEW COUNCIL MEMBER COMING IN UNDERSTANDING THAT FROM A TRANSPARENCY, BECAUSE YOU DON'T KNOW WHAT YOU DON'T KNOW, RIGHT? RIGHT, RIGHT. AND THEN ALSO INVESTMENT TRAINING. SO I SAW A LOT OF LANGUAGE THAT RELATED TO THE CITY CONTROLLER OR THE INVESTMENT OFFICERS AND ANY EMPLOYEES THAT WOULD BE DELEGATED THE AUTHORITY TO ENGAGE IN INVESTMENT TRANSACTIONS BE REQUIRED TO EARN AT LEAST NO LESS THAN TEN HOURS ON AN ANNUAL BASIS WITHIN 12 MONTHS. TRAINING AND WE DIDN'T HAVE ANYTHING IN THAT, NOT LIKE THAT TO BE CONSIDERED. AND THEN, BECAUSE I KNOW MY TIME IS COMING TO A CLOSE, I ALSO SAW LANGUAGE THAT TALKED ABOUT EFFECTIVE LOSS OF REQUIRED RATINGS. SO WHEN THERE'S NOT A MINIMUM RATING LISTED AT ALL, WHAT DOES THE CITY DO TO LIQUIDATE THOSE INVESTMENT TYPES AND THAT'S NOT CALLED OUT EITHER. I MAY HAVE BEEN A FINANCE MAJOR BEFORE I SWITCHED, SO I WAS JUST CURIOUS FROM THOSE PERSPECTIVES, COULD THAT WHAT IS BECAUSE THEY WEREN'T IN THERE AND I KNOW THAT FROM JUST THE TRANSPARENCY. WHAT DOES THAT LOOK LIKE FOR OUR CITY? YEAH. I'M SORRY. REMIND ME OF THE FIRST. THE FIRST ONE YOU WERE ASKING ABOUT WAS THE AND I APOLOGIZE. IT'S THE UNDER THE SECTION SEVEN HAVING THE MAXIMUM MATURITY LISTED FOR EACH OF THE INVESTMENT TYPES. RIGHT. THE SECOND WAS INVESTMENT TRAINING AND THE THIRD WAS THE EFFECT OF LOSS OF REQUIRED RATING. WHAT HAPPENS OKAY. AND I WAS THINKING WE HAD THE INVESTMENT TRAINING IN THERE BUT I DIDN'T SEE IT. OKAY. UP AND DOWN OKAY OKAY. UP AND DOWN AND DOWN AND UP OKAY. ALL RIGHT. WELL WE WILL LOOK FOR THAT. AND GET THAT. YEAH. GET THAT. AND THEN AS FAR AS SO I THINK YOUR OTHER QUESTION WAS ABOUT WHAT HAPPENS IF THE RATING CHANGES ON AN INVESTMENT POLICY AND IT DOESN'T HAVE A MINIMUM AT ALL. SO THEN WHAT DOES THE CITY DO? DO THEY JUST DOES IT THEN BECOME A NON LIKE NOT A REQUIRED ONE. AND THEN THOSE FUNDS ARE THEN LIQUIDATED TO ANOTHER INVESTMENT. BUT I JUST BECAUSE IT DOESN'T SAY IT I WAS JUST CURIOUS. YEAH A LOT OF TIMES AND GENERALLY THE PRACTICE IS IF THAT HAPPENS THEN YOU SOMETIMES IT CAN BE PUNITIVE. IF YOU LIQUIDATE THAT BEFOREHAND, A LOT OF TIMES YOU'RE BETTER OFF JUST TO HOLD IT TO MATURITY. BUT YEAH, THAT'S THANKFULLY THAT RARELY HAPPENS. BUT IT IS ONE OF THOSE SITUATIONS WHERE YOU KIND OF WANT TO TAKE IT ON A CASE BY CASE BASIS. AND SO IT'S A LITTLE BIT TRICKY TO PUT A POLICY IN PLACE. BUT THANKFULLY THE CITY IS PRIMARILY INVESTING, INVESTING IN GOVERNMENT AGENCIE, CDS THAT ARE BACKED BY [01:10:05] COLLATERALIZED, YOU KNOW, SECURITIES. SO THE CITY'S INVESTMENTS ARE REALLY PRETTY SAFE. I THINK THE MAIN TIME YOU WOULD SEE THAT IS IF YOU WERE INVESTING IN MUNICIPAL BONDS, YOU KNOW, A CITY OR SOMETHING, AND THE CITY ISN'T DOING THAT. SO BUT YEAH, WE CAN WE CAN DEFINITELY TALK ABOUT THAT AND KIND OF TAKE THAT BACK TO THE INVESTMENT COMMITTEE AND REVIEW THAT FOR SURE. OKAY. THANK YOU. THANK YOU, COUNCILMEMBER PARKER. YOU HAVE TWO MINUTES. THANK YOU. MADAM MAYOR. I JUST REALLY WANTED TO ASK THE QUESTION ABOUT AND THANK YOU FOR YOUR PRESENTATION. I REALLY WANTED TO ASK THE QUESTION ABOUT THE FDIC PART OF THE CAN YOU PUT THAT BACK UP? YEAH, YEAH, JUST WITHIN THE POLICY, YOU HAVE IT AS FDIC. I KNOW THAT THAT'S FEDERALLY BACKED. RIGHT. THE ONE FOR THE CREDIT UNION. DOES THAT MEAN IT IS WHO IS WHO'S BACKING THAT? I DON'T KNOW THAT INFORMATION. YEAH. SO IT'S KIND OF THE EQUIVALENT OF THE FEDERAL DEPOSIT INSURANCE CORPORATION. AND IT'S JUST ANOTHER AGENCY SET UP LIKE THE FDIC, BUT IT'S SET UP SPECIFIC TO CREDIT UNIONS. SO IT'S THE SAME PRINCIPLE. OKAY. BUT IT'S EQUALLY AS AS INSURED OR BACKED. RIGHT. I JUST WANT TO MAKE SURE THANK YOU FOR YOUR QUESTION. THANK YOU. COUNCIL. ARE THERE ANY ADDITIONAL QUESTIONS? OKAY. HEARING NONE AGAIN, MR. CITY MANAGER, THANK YOU AGAIN FOR YOUR PRESENTATION. IS THERE ANY ADDITIONAL DIRECTION OR ANYTHING YOU ALL NEED FROM US ON THIS? ALL RIGHT, ALL RIGHT. THANK YOU. COUNCIL. THANK YOU FOR YOUR QUESTIONS ON THIS AT THIS TIME. THAT CONCLUDES ALL OF OUR CONSULTANT LED PRESENTATIONS. CORRECT? [4. EXECUTIVE SESSION AND RESULTING POTENTIAL ACTION ] OKAY. EXECUTIVE SESSION. YES. THE CITY COUNCIL WILL CONVENE INTO EXECUTIVE SESSION PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072, REAL ESTATE DELIBERATION REGARDING REAL PROPERTY TO DELIBERATE THE PURCHASE, EXCHANGE, LEASE OR VALUE OF TWO REAL PROPERTY LOCATIONS WITHIN THE CITY LIMITS OF DESOTO, TEXAS, AS WELL AS TEXAS GOVERNMENT CODE SECTION 551.087. ECONOMIC DEVELOPMENT DELIBERATIONS. TO DELIBERATE THE OFFER OF A FINANCIAL OR OTHER INCENTIVE FOR PROJECT RECREATION AND ANY ACTION AS A RESULT. THANK YOU, MISS THOMAS. COUNCIL AT THIS TIME IT IS 7:12 P. * This transcript was compiled from uncorrected Closed Captioning.