[1. Discuss and consider the approval of an Ordinance amending the comprehensive zoning ordinance and map of the city of DeSoto, Texas, as heretofore amended, to grant a change in zoning for 85 parcels of land, generally located along hampton road between pleasant run road and belt line road, city of DeSoto, Dallas County, Texas, from single family residential district - 9,000 (sf-9), single family residential district – 10,000 (sf-10), multiple family district (mf), general retail district (gr), office district - 1 (o-1), and office district - 2 (o-2).to urban center district (uc); for 85 parcels of land, generally located along hampton road between pleasant run road and belt line road, city of DeSoto, Dallas County, Texas, from single family residential district - 8,000 (sf-8), single family residential district - 9,000 (sf-9), single family residential district - 10,000 (sf-10), two family residential district (2f), general retail district (gr), office district - 1 (o-1), and office district – 2 (o-2) to urban general district (ug); for 31 parcels of land, generally located along hampton road between pleasant run road and belt line road, city of DeSoto, Dallas County, Texas, from single family residential district – 8,000 (sf-8), single family residential district - 9,000 (sf-9), single family residential district - 12,000 (sf-12), and general retail district (gr) to neighborhood services district (ns); for 6 parcels of land, generally located along hampton road between pleasant run road and belt line road, city of DeSoto, Dallas County, Texas, from single family residential district – 10,000 (sf-10), general retail district (gr), and office district – 1 (o-1) to urban neighborhood district (un); and for 3 parcels of land, generally located along hampton road between pleasant run road and belt line road, city of DeSoto, Dallas County, Texas, from single family residential district – 10,000 (sf-10), and single family residential district – 15,000 (sf-15) to neighborhood transition district (nt). The applicant is the City of DeSoto. (Case #Z-1514-24) The City Council Public Hearing was officially conducted and closed during the DeSoto City Council Meeting conducted on February 18, 2025.]

THANK YOU SO MUCH. WE WILL GO TO THE NEXT ITEM ON OUR AGENDA WHICH ARE PUBLIC HEARINGS. WE HAVE NO PUBLIC HEARINGS, SO WE'LL MOVE ON TO OUR REGULAR AGENDA. WE HAVE A REGULAR AGENDA. NEW BUSINESS I ONE AND THAT IS DISCUSS AND CONSIDER THE APPROVAL OF AN ORDINANCE AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND MAP OF THE CITY OF DESOTO, TEXAS AS HERE FORWARD TO AMEND IT TO GRANT A CHANGE IN ZONING FOR 85 PARCELS OF LAND GENERALLY LOCATED ALONG HAMPTON ROAD BETWEEN PLEASANT RUN ROAD AND BELTLINE ROAD. CITY OF DESOTO, DALLAS COUNTY, TEXAS, FROM SINGLE FAMILY RESIDENTIAL DISTRICT 9000 SF NINE A SINGLE FAMILY RESIDENTIAL DISTRICT.

COUNCIL MEMBER. THANK YOU FOR BEING HERE. WE LAST TIME WE SPOKE ON THIS ISSUE, WE HAD QUESTIONS ON WHETHER OR NOT THE PDS HAD GONE, HAD BEEN REVIEWED BY THE PLANNING AND ZONING COMMISSION. AND AT THAT TIME, I BELIEVE THAT YOU GUYS PRESENTED SOMETHING THAT PLANNING AND ZONING HAS NOT SEEN. IS THAT CORRECT? HAS HAVE THAT BEEN CORRECTED? GOOD EVENING, HONORABLE MAYOR PROCTOR AND DISTINGUISHED MEMBERS OF THE DESOTO CITY COUNCIL. AS FAR AS THE PDS ARE CONCERNED, THE PLANNING AND ZONING COMMISSION APPROVED THE REZONING BOUNDARIES, INCLUDING THE PDS. AND THAT WAS LAST MONTH. SO THERE WAS A DISCUSSION DURING THE FEBRUARY 18TH MEETING REGARDING THE FOUR PDS AND THE STAFF'S RECOMMENDATION AT THAT

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TIME TO EXCLUDE THOSE PDS FROM THE FROM THE REZONING. AND SO SINCE THAT TIME, STAFF HAS ACTUALLY REVIEWED THE PDS, AND I DO HAVE A SLIDE INCLUDED IN IN THIS PARTICULAR PRESENTATION THAT PROVIDES SOME DETAILS REGARDING WHAT WE FOUND. COUNCILMAN, IF, IF I MAY, IF I MAY JUMP IN AND ASK THE QUESTION WAS IF THE PLANNING COMMISSION HAS APPROVED THE ZONING MAP WITH WITHOUT THE PDS AND THAT'S NOT CORRECT. SO WE ACTUALLY WHAT WE WHAT WHAT THE PLANNING COMMISSION HAS SHARED WAS, WAS APPROVAL OF THE ZONING MAP WITH THE PD. SO WE NEVER WENT BACK TO THE PLANNING COMMISSION AGAIN. AFTER REMOVAL OF THE PDS. THANK YOU. AND THANK YOU VERY MUCH FOR THE INFORMATION. I WILL I WOULD, MADAM MAYOR I WOULD I DON'T KNOW WHAT THE PROPER PROTOCOL WOULD BE, BUT I THINK THAT WE NEED TO SEND THIS MAYBE BACK TO THE PLANNING AND ZONING AND LET THEM LOOK AT WHAT HAS BEEN PRESENTED TO COUNCIL. I HAVE A YOU KNOW, I DON'T HAVE A PROBLEM MAKING A DECISION, BUT WE HAVE PLANNING AND ZONING THERE FOR A REASON. AND IF THERE ARE, IF ONE OF THE PD, ONE OF THE OWNERS THAT'S IN A PD, HAD OPPOSITION TO IT AND WAS NOT GIVEN AN OPPORTUNITY TO SPEAK BEFORE THE PLANNING AND ZONING COMMISSION, THEN AT THE APPROPRIATE TIME, I WOULD LIKE TO MAKE A RECOMMENDATION TO SEND THIS BACK TO THE PLANNING AND ZONING. MADAM MAYOR, I SECOND THAT BECAUSE WHEN WE LOOK AT OUR PD, ANYTIME WE MAKE ANY TYPE OF CHANGES, IT HAS TO GO THROUGH PD BEFORE IT COMES BACK TO US. SO I SECOND THERE'S A MOTION TO REMAND BACK TO THE PLANNING AND ZONING FOR FURTHER CONSIDERATION. SURE I WOULD THIRD THAT. SO WHAT I HEAR IS THERE IS A THERE SEEMS TO BE A MOTION. CORRECT. MR. GRAFFITI. IS THAT WHAT YOU HEARD? THERE SEEMS TO BE A MOTION BY COUNCILMAN BYRD AND A SECOND BY DOCTOR MARKS TO SEND THIS BACK TO THE PLANNING AND ZONING COMMISSION. COUNCIL, ARE THERE ANY QUESTIONS OR CONCERNS OR FEEDBACK REGARDING THAT MOTION BEFORE WE CALL FOR A VOTE? MR. GRAFFITI, CAN WE USE OUR VOTING PADS TONIGHT OR DO WE JUST CAN WE JUST TAKE A HAND VOTE OKAY OR JUST A VOTE? OKAY. THANK YOU.

COUNCIL, THERE IS A MOTION ON THE FLOOR. ALL IN FAVOR, PLEASE SAY AYE. AYE. ALL OPPOSED? SAME SIGN. THAT MOTION PASSES UNANIMOUSLY. THANK YOU. COUNCIL. THANK YOU, MISS COLTON. THANK

[2. Consider approval of a Resolution authorizing the publication of a Notice of Intention to Issue Certificates of Obligation for the design, acquisition, construction, and improvements of certain public infrastructure, authorizing the distribution of a preliminary official statement relating to such series of certificates, and authorizing certain other matters relating thereto]

YOU ALL. AT THIS TIME, WE'LL HAVE THE NEXT ITEM ON THE AGENDA, WHICH IS NUMBER TWO IS CONSIDER APPROVAL OF A RESOLUTION AUTHORIZING THE PUBLICATION OF A NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE DESIGN, ACQUISITION, CONSTRUCTION AND IMPROVEMENTS OF CERTAIN PUBLIC INFRASTRUCTURE, AUTHORIZING THE DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT RELATING TO SUCH SERIES OF CERTIFICATES, AND AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO. MAKING THE PRESENTATION. MAKING THE INTRO OF THE PRESENTER IS TRACY CORMIER, FINANCE DIRECTOR. THANK YOU. GOOD EVENING, MR. CORMIER. GOOD EVENING MAYOR COUNCIL. I'M HERE TODAY FOR COUNCIL TO APPROVE A RESOLUTION AUTHORIZING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION. THE CAPITAL IMPROVEMENT PROGRAM CONTAINS STREET WATER AND SEWER INFRASTRUCTURE IMPROVEMENTS, BUILDING IMPROVEMENTS, PARK AND CREW IMPROVEMENTS THAT REQUIRE THE SALE OF CERTIFICATES OF OBLIGATION. THE BOND WILL SUPPORT THE FOLLOWING PROJECTS. THE CITY COUNTY JOINT PROJECT AT WESTMORELAND ROAD. TRAFFIC SIGNAL RENOVATION. NEW TRAFFIC SIGNAL ALLEY RECONSTRUCTION. CONCRETE STREET REPAIR. ASPHALT STREET REPAIR, AQUATIC AND RECREATION CENTER AND PARKS CITY ENTRYWAY, DIGITAL SIGNAGE, DRAINAGE, WOLF CREEK WATER AND SEWER CAPITAL PROJECTS. NASS AND NASS FARM PRIOR TO THE ISSUANCE OF CERTIFICATES OF OBLIGATION, THE CITY IS REQUIRED TO PUBLISH NOTICE OF INTENTION TO ISSUE THE BONDS IN THE NEWSPAPER, STATING THE TIME AND PLACE COUNCIL PROPOSES TO PASS THE ORDINANCE.

THE BOND, PRINCIPAL AND INTEREST FOR PARKS, BUILDINGS, STREET INFRASTRUCTURE AND IMPROVEMENTS WILL BE BUDGETED IN THE DEBT SERVICE FUND. THE PRINCIPAL AND INTEREST COST FOR WATER AND SEWER INFRASTRUCTURE WILL BE BUDGETED IN A WATER AND SEWER OPERATIONAL FUND. THE PRINCIPAL INTEREST FOR DRAINAGE WOULD BE BUDGETED IN THE DRAINAGE FUND. THE PRINCIPAL AND INTEREST COST FOR NANZ FARM RENOVATION WILL BE BUDGETED IN THE HOTEL OCCUPANCY FUND. STAFF RECOMMENDS THAT COUNCIL APPROVE A RESOLUTION AUTHORIZING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION FOR THE DESIGN, ACQUISITION, CONSTRUCTION AND IMPROVEMENTS OF CERTAIN PUBLIC INFRASTRUCTURE. AUTHORIZING THE DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENTS

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RELATING TO SUCH SERIES OF CERTIFICATES, AND AUTHORIZING CERTAIN OTHER MATTERS RELATED TO THEIR END. ALSO, MAYOR, WE HAVE ANDRE AYALA HERE FROM HILLTOP SECURITY. IF THERE'S ANY QUESTIONS RELATED TO THE PLAN OF FINANCE, THANK YOU. IS MR. AYALA GOING TO BE MAKING A PRESENTATION TONIGHT? NO, NO OKAY. AT THIS. THANK YOU, MISS CORMIER. AT THIS TIME COUNCIL I'LL ENTERTAIN A MOTION AND THEN WE CAN ENTERTAIN DISCUSSION. MADAM MAYOR, I MOVE THAT WE APPROVE AS PRESENTED SECOND. THANK YOU. AT THIS TIME COUNCIL, IS THERE DISCUSSION? YES, DOCTOR MARX. THANK YOU. MADAM MAYOR. I'D LIKE FOR YOU, IF YOU DON'T MIND. REVISIT THE WAY THE FUNDS WILL BE DISTRIBUTED. I'M SORRY, I DIDN'T HEAR THE QUESTION. DOCTOR MARX, CAN YOU REPEAT YOUR QUESTION? OH. I'M SORRY. THANK YOU AGAIN. CAN YOU GO OVER HOW THE FUNDS WILL BE DISTRIBUTED? HOW? WHAT IS THAT LOOK LIKE? CAN YOU GO OVER THAT AGAIN WITH ME, PLEASE? THE CITY AND COUNTY JOINT WESTMORELAND PROJECT, 9 MILLION TRAFFIC SIGNAL RENOVATION, 750,000. NEW TRAFFIC SIGNAL 400,000. ALLEY RECONSTRUCTION 1 MILLION. CONCRETE STREET REPAIR 1.5 MILLION. ASPHALT STREET REPAIR 1.5 MILLION. AQUATIC CENTER, AQUATIC AND RECREATION CENTER AND PARKS 20.5 MILLION. CITY ENTRYWAY AND DIGITAL SIGNAGE 500,000. DRAINAGE. WOLF CREEK 2.4 MILLION. WATER AND SEWER CAPITAL PROJECTS 10 MILLION. AND NANCE FARM 1 MILLION. OKAY, SO THERE WERE NO STREETS OR DID I MISS THAT? I'M SORRY. WE HAVE CONCRETE STREET REPAIR AND ASPHALT STREET REPAIR, AND THAT'S HOW MUCH? 1.5 MILLION A PIECE. AND THEN ALSO, I'M SORRY FOR THE WESTMORELAND ROAD. TWO OF 9 MILLION. OKAY. AND WHAT STREETS ARE THOSE, SIR, THAT WILL BE DETERMINED AT A LATER DATE BY DEVELOPMENT SERVICES. AS FAR AS THE CONCRETE AND ASPHALT, THE REASON I'M ASKING IS ABOUT WESTMORELAND ROAD. WESTMORELAND HAS BEEN ON THE BOOKS SINCE 201, AND IT'S STILL RAGGED, SO I'M TRYING TO MAKE SURE THAT SOME OF THOSE FUNDS ARE. YES, THE 9 MILLION IS GOING TOWARD WESTMORELAND. OKAY, OKAY. AND THAT'S EXACTLY WHAT I THOUGHT WAS GOING TO HAPPEN LAST TIME, BUT IT DIDN'T. SO I JUST WANT TO MAKE SURE THAT, YOU KNOW, IT'S STEERED THAT WAY. THANK YOU, DOCTOR MARX COUNCIL, ARE THERE ANY ADDITIONAL QUESTIONS? I HAVE A QUESTION. YES. COUNCILOR CORMIER, THANK YOU FOR YOUR PRESENTATION. CAN I ASK A QUESTION? ONCE THESE AMOUNTS HAVE BEEN ALLOCATED AND THE BONDS HAVE IT BEEN ISSUED, WHO HAS THE AUTHORITY TO CHANGE HOW THEY'RE SPENT? CAN YOU PICTURE MARK? I'M SORRY. WHO HAS THE AUTHORIZATION? SO IF IT WAS IT WAS SAID THAT THE WESTMORELAND WAS ON A PREVIOUS DEAL. DO DO YOU HAVE THE ABILITY TO CHANGE WHERE THE MONEY IS SPENT? ONCE YOU ISSUE THE BONDS FOR A PARTICULAR PROJECT? NOT IF THE PROJECT IS IDENTIFIED IN THE BOND SALE. SO ONCE THE PROJECT IS IDENTIFIED IN THE BOND SALE, YES, IT MUST GO TOWARDS THE IDENTIFIED PROJECT. YES, SIR.

OKAY. AND THEN MY SECOND QUESTION IS I SEE THAT THERE'S 20,500,000 IN HERE FOR THE AQUATIC CENTER. WE KNOW THAT THAT IS NOT THE TOTALITY OF THAT CENTER. IS THIS THE FIRST TIME THAT THAT'S BEEN ON A BOND ISSUANCE? NO. THIS IS THE THIRD TIME WE'VE DRAWN BOND MONEY FOR THE AQUATIC CENTER. SO IT'S THE THIRD TIME. YES. AND WHAT HAPPENS TONIGHT IF WE DON'T APPROVE THE BALANCE? STAFF WOULD HAVE TO RECONVENE AND COME UP WITH A PLAN. AND IT'S POSSIBLE CONSTRUCTION WILL BE PAUSED. OKAY. VERY GOOD. IT'S POSSIBLE. WHAT? CAN YOU REPEAT THAT? I SAID STAFF WOULD HAVE TO RECONVENE TO COME UP WITH A PLAN AND POSSIBILITY THAT CONSTRUCTION WILL BE PAUSED. AND FINALLY, IS THIS OUR THIRD AND FINAL DRAW REGARDING THE AQUATIC CENTER? YES, SIR. ALL RIGHT. THANK YOU. THANK YOU, MADAM MAYOR. NO FURTHER QUESTIONS.

YEAH. MAYOR, I WANT TO CLARIFY SOMETHING. WE HAVE SOMETHING THAT IS CALLED THE FIVE YEAR CAPITAL IMPROVEMENT PLAN. THAT CAPITAL IMPROVEMENT PLAN IS NORMALLY NOT BUDGETED FOR.

USUALLY, IT'S ONLY THE CURRENT YEAR IN THE BUDGET THAT IS BUDGETED FOR. AND YOU MAY HAVE A PROJECT THAT CARRIES OVER SEVERAL YEARS OF FISCAL YEARS. SO WHAT MR. CORMIER AND HIS TEAM ARE DOING IS RATHER THAN SAYING, WE'RE GOING TO BORROW $150 MILLION IN BONDS TO, TO SERVE OR TO TAKE CARE OF OUR CAPITAL IMPROVEMENT PROGRAM EVERY SINGLE YEAR. THEY COME UP WITH A PLAN AND A SPENDING PLAN. THAT IS AN ANNUAL PLAN. AND THAT'S WHERE THEY THEY COME IN WITH THE

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NOTICE OF INTENT TO SAY, WE'RE GOING TO SPEND THAT MONEY ON THAT SPECIFIC PHASE OR THAT SPECIFIC PROJECT. AND THAT'S HOW PROGRAMING FOR CAPITAL IMPROVEMENT WORKS. SO, SO, SO IF THAT'S THE CASE, IF, IF WESTMORELAND HAS BEEN ON OR ARE YOU SAYING WESTMORELAND WASN'T ON AND DIDN'T GET ADDRESSED? I'M TRYING TO FIGURE OUT WHAT'S WHAT'S WHAT HAPPENED BETWEEN 17 AND 25. SO LET ME LET ME GIVE YOU A LITTLE BIT OF INFORMATION THEN, ISOM, MAYBE YOU CAN JUMP IN BECAUSE YOU KNOW THE HISTORY MORE. YOU USUALLY BUDGET FOR THE DESIGN OR THE PLANNING AND DESIGN OF A PROJECT AND PLANNING. DESIGN OF A PROJECT IS SOMEWHERE AROUND 15% OF THE PROJECT. THE WESTMORELAND ROAD IS ABOUT $22 MILLION. OKAY, SO THE CITY HAS NOT BUDGETED $22 MILLION FROM THE GET GO FOR THAT. THE CITY MAY HAVE BUDGETED ABOUT $2 MILLION INITIALLY, AND THEN MAYBE FOR UTILITY IMPROVEMENTS OR RELOCATION, BUDGETED ANOTHER AMOUNT OF MONEY, RIGHT OF WAY ACQUISITION BUDGETED AMOUNT OF MONEY. RIGHT. AND THEN FOR CONSTRUCTION, YOU BUDGET ANOTHER AMOUNT OF MONEY. SO IT GOES OVER PHASES. SO EVEN THOUGH IT WAS EARMARKED AT IN 2017, THE BUDGETING CANNOT COME IN ALL TOGETHER AT THE SAME TIME. SO AGAIN YOU HAVE TO PHASE IT OUT BECAUSE IF YOU BUDGET IT, LET'S SAY IN 2017 SAID WE NEEDED $20 MILLION. BY TODAY'S STANDARDS, IT PROBABLY IS 25 TO $30 MILLION. SO THAT'S THE REASON WE ACTUALLY MONITOR THE COMMODITIES AS WELL. OKAY. SO, SO WITH THIS AMOUNT OF MONEY BEING ALLOCATED FOR WESTMORELAND, WHAT PART CAN WE EXPECT TO SEE FOR WESTMORELAND? YOU SAID CERTAIN CERTAIN PARTS WERE DESIGNATED FOR DESIGN. CERTAIN WAS THIS WHAT CAN WE EXPECT TO SEE FROM FROM THIS MONEY FOR WHAT'S MORE SO WE HAVE WE HAVE JACQUELINE WHO CAN ANSWER THE SPECIFICS. BUT I WOULD TELL YOU, WE'VE ALSO APPLIED FOR A GRANT FOR A CONNECTIVITY GRANT FROM COG FOR $4 MILLION FOR WESTMORELAND AS WELL. SO WE'RE ASKING FOR $9 MILLION. WE HAVE $4 MILLION. WE HAVE, I BELIEVE, SIX MORE MILLION DOLLARS IN THE BOOKS. AND THEN THE COUNTY HAS GIVEN US THREE MORE MILLION DOLLARS. SO WE SHOULD BE ABLE TO TAKE CARE OF WESTMORELAND. AND WE'RE ACTUALLY ASKING ADDITIONALLY FOR ADDITIONAL BUDGET FROM COG TO SEE IF WE CAN, YOU KNOW, MAKE SURE THAT THE FUTURE GAP IS ADDRESSED AS WELL. SO AGAIN, FROM THIS PARTICULAR BUCKET OF MONEY, WHAT CAN WE EXPECT TO SEE FROM FOR WESTMORELAND? SO THE WESTMORELAND PROJECT IS 100% DESIGNED. AND SO THIS PIECE WILL COMPLETE ALL THE FUNDING WE NEED IN ORDER TO BE ABLE TO AWARD AND CONSTRUCT THE PROJECT. SO ARE YOU. AND GENERALLY, IT TAKES A YEAR AND A HALF TO TWO YEARS, YOU KNOW, AT THE, AT THE MOST TO CONSTRUCT A PROJECT OF THIS NATURE. DID I ANSWER YOUR QUESTION? SO YOU TOLD ME THAT IT TAKES ABOUT TWO YEARS, A YEAR OR SO TO. SO IS THERE SOMETHING THAT I CAN SEE THAT'S THAT'S HAPPENING ON WESTMORELAND? OKAY. NOT CURRENTLY. THE DESIGN IS DONE, BUT UNTIL WE ACTUALLY AWARD THE CONSTRUCTION JOB, YOU WILL NOT SEE ANY ACTIVITIES, YOU KNOW, RELATED TO THE PROJECT. BUT ONE OF THE KEY PIECES WAS TO BE ABLE TO, YOU KNOW, GET ALL OF OUR FUNDING TOGETHER SO THAT THE PROJECT COULD BE AWARDED. OKAY, OKAY. THANK YOU. THANK YOU, COUNCILMEMBER CHISHOLM. OH, EXCUSE ME. MR. MR. CAMERON. YES, MA'AM. I JUST WANT TO ADD TO WHAT JACKIE, MISS COLTON SAID. SO REMEMBER, THIS PROJECT IS A IS A LIKE THE CITY MANAGER MENTIONED IS A IS A PROJECT THAT WE'RE WORKING WE'RE DOING IN CONJUNCTION WITH DALLAS COUNTY.

AND SO WHAT WE WHAT WE'RE NOW ABLE TO DO IS SAY TO DALLAS COUNTY, HEY, WE HAVE OUR FUNDING COMMITMENT READY, BECAUSE WHERE YOU'VE SEEN WESTMORELAND ON THIS, ON THE DEBT ISSUANCE FOR A COUPLE OF YEARS, IT'S BECAUSE WHAT WE HAVE BEEN DOING WAS PUTTING A LITTLE BIT BECAUSE WE KNEW WE COULDN'T PUT THE WHOLE AMOUNT ON ISSUE, THE WHOLE ISSUE DEBT FOR THE ENTIRE AMOUNT.

WE'VE DONE A LITTLE BIT OVER A COUPLE OF YEARS, LIKE, LIKE THEY SAID, DESIGN RIGHT AWAY, IMPROVEMENTS RIGHT AWAY ACQUISITION AND ALL OF THAT. AND SO NOW WE'RE AT THE POINT WHERE THIS FINAL TRANCHE SHOULD, SHOULD GET US ALL WE NEED FOR OUR PORTION OF THE WESTMORELAND PROJECT. AND SO NOW IF THE COUNTY SAYS WE'RE READY TO GO, THEN WE'RE READY TO GO. WE'RE READY TO GO. THERE'S NO MORE, YOU KNOW, UNLESS IT COSTS ESCALATES SO MUCH THAT WE HAVE TO ASK FOR ADDITIONAL MONEY. RIGHT NOW, WE BELIEVE THAT WE HAVE WHAT WE NEED TO COMPLETE

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THE PROJECT. OKAY, I THINK I UNDERSTAND WHAT YOU'RE SAYING, BUT IT STILL DOESN'T TELL ME WHERE. WHAT CAN I EXPECT TO SEE? WILL I SEE ANYTHING FROM THIS BUCKET OF MONEY FOR WESTMORELAND? IF IT IS A GO, WHAT CAN I EXPECT TO SEE? OKAY, THE PROJECT WILL MOVE FORWARD WITH THE $9 MILLION. ASK THAT THAT IF THEIR CERTIFICATE OF OBLIGATION ARE ISSUED, THEN WE WOULD HAVE THE FUNDING THAT WE NEED TO MOVE THE PROJECT FORWARD. ONCE WE KNOW THAT WE HAVE THE WE CAN'T MOVE THE PROJECT FORWARD UNLESS WE HAVE THE FULL FUNDING. OKAY. SO WHAT'S NEXT IN LINE FOR MOVING FORWARD? WHAT IS MOVING FORWARD? WHAT IS ADVERTISE ADVERTISING AND THEN BEGINNING CONSTRUCTION OKAY. AND THAT WOULD TAKE TWO YEARS AS AS JACKIE SAID THAT WOULD TAKE TWO YEARS TO CONSTRUCT TO COMPLETE. THANK YOU, COUNCILMEMBER CHISHOLM.

THANK YOU, MADAM MAYOR, AND THANK YOU SO MUCH FOR YOUR PRESENTATION. AND I'M SO HAPPY TO SEE MR. AYALA IN THE AUDIENCE. I THINK SOME SOME OF MY QUESTIONS OR CONCERNS I THINK YOU CAN HELP ME WITH, BECAUSE OF YOUR LONG HISTORY WITH DEALING WITH THE CITY OF DE SOTO, I SPENT THE WEEKEND LOOKING AT PRIOR COUNCIL MEETINGS, AND YOUR FACE POPPED UP EVERY SINGLE TIME WE GOT TO TALKING ABOUT CERTIFICATE OF OBLIGATIONS. AND I KNOW THAT THE COMMUNITY, RIGHTFULLY SO, RIGHT, HAD CONCERNS AROUND, YOU KNOW, THE CITY OF DE SOTO ISSUING MORE DEBT. RIGHT. AND THAT'S THAT'S IMPORTANT. RIGHT. BECAUSE ONE JOB AS A CITY COUNCIL MEMBER IS WE HAVE TO BE ABLE TO BALANCE THE BOOK, RIGHT. WE ALSO HAVE SURVEYS THAT SAY WE WANT PARKS, WE WANT OUR STREETS FIXED. AND SO WE HAVE TO ALSO BALANCE THAT. I BELIEVE OUR LAST SURVEY POINTED OUT FROM THE CITIZENS THAT OUR SEWER AND WATER WAS SOMETHING THAT THEY WANTED US TO ADDRESS. OUR STREETS WERE SOMETHING THAT THEY WANTED US TO ADDRESS, AND OUR PARKS, WHICH WE HAVE SUCCESSFULLY DONE OVER THE LAST THREE YEARS, CONSIDERING WE HAVE THIS CAPITAL IMPROVEMENT PLAN THAT THE CITY MANAGER TALKED ABOUT. MY QUESTION TO YOU, BECAUSE IT APPLIES WHILE, YOU KNOW, IN MY RESEARCH, YOU KNOW, I WENT BACK AND MANY OF OUR VOTES WERE EITHER ALL MAJORITY SEVEN 0 OR 7 SIX ONE. RIGHT. IN ALL OF THESE ISSUANCE. BUT I WANTED TO HAVE THE CONVERSATION WITH YOU ABOUT THE AMOUNT OF DEBT THAT WE ARE INCURRING, BECAUSE THAT IS A CONCERN WITH RESIDENTS, LIKE I SAID, RIGHTFULLY SO. RIGHT. WE HAVE TO BE ABLE TO ADDRESS THAT.

AND SO AS I KNOW THAT WE ARE ALSO PAYING DEBT. RIGHT. AND SO IF YOU CAN ARTICULATE FROM YOUR THIRD PARTY POINT OF VIEW, MEANING THAT WE'RE NOT PAYING YOU TO SAY NICE THINGS ABOUT DE SOTO, RIGHT? WE ARE PAYING YOU TO GIVE US WHAT WE NEED TO KNOW FROM A FINANCIAL ASPECT IN ORDER TO MAKE GREAT DECISIONS HERE ON THIS DAIS, BUT FROM A DEBT PERSPECTIVE, AND AS IT RELATES TO OUR REVENUE AND ACCEPTING THIS NEW DEBT THAT WE WOULD HAVE, WHAT DOES THAT DO FOR OUR FINANCIAL STATE AS IT RELATES TO LET'S SAY WE COME BACK TO YOU NEXT YEAR, OR WHAT DOES THAT DO TO US IN TEN YEARS OR FIVE YEARS AS A CITY, SO THAT THE DECISIONS THAT WE MAKE, THAT WE KNOW WE MAKE TODAY HAVE EFFECT ON RESIDENTS AND THE FUTURE COUNCILS FIVE, TEN, 20 YEARS FROM NOW. I KNOW I GAVE YOU A LOT, BUT I KNOW YOU, ME WATCHING YOUR PRIOR MEETINGS. I KNOW YOU CAN TAKE IT. WHAT DO YOU MEAN? GOOD EVENING, MADAM MAYOR. COUNCIL. ANDRE SECURITY CITY FINANCIAL ADVISOR. I THINK YOU ASKED A LOT OF QUESTIONS HERE, AND I WANTED TO GO TO THE SLIDE SHOWING THE. IT'S NOT WORKING. THE CITY'S BOND RATING. FIRST. I THINK IT'S IMPORTANT TO UNDERSTAND THE CONTEXT BEFORE YOU DECIDE WHETHER TO MOVE FORWARD WITH THIS ITEM TONIGHT, AS I MENTIONED BEFORE, THE CITY IS A DOUBLE AA RATED CITY. WHAT WE DID HERE, UNDERSTANDING SOME OF THE CONCERNS AND QUESTIONS THAT I WAS ASKED TWO WEEKS AGO, WAS TO REDO THE FORMAT OF THE PLAN OF FINANCE PRESENTATION SO THAT I CAN PROVIDE TO YOU AS MUCH INFORMATION AS YOU NEED TO MAKE THE RIGHT DECISION. AS YOU CAN SEE ON THE SCREEN. MAYOR AND COUNCIL. THE CITY OF DESOTO IS A DOUBLE A OR DOUBLE A TWO RATED ENTITY. TRIPLE A IS THE HIGHEST RATING YOU CAN HAVE. SO WHAT THAT SAYS IS THAT YOU HAVE THREE ENTITIES THAT ARE WELL RESPECTED, NOT JUST HERE IN THIS COUNTRY, BUT AROUND THE WORLD, GIVING A THIRD PARTY CREDIT. OPINION ON HOW THE CITY OF DESOTO MANAGES ITS FINANCIAL, YOU KNOW, FINANCIAL MANAGEMENT PRACTICES, BUDGETING, ELECTED LEADERSHIP, STAFF LEADERSHIP. ET CETERA. SO GIVING YOU THAT CONTEXT, COUNCILMEMBER CHISHOLM, I CAN TELL YOU THAT THE CITY OF DESOTO, IN SUMMARY, IS WHAT WE CONSIDER IN THE FINANCIAL INDUSTRY, A HIGH INVESTMENT GRADE COMMUNITY. NOW, ADDRESSING YOUR QUESTION AS TO WHAT HAPPENS TO THE SOTO IF YOU ISSUE 48, 49 MILLION, $49 MILLION WORTH OF ADDITIONAL BONDS, DO I EXPECT

[01:05:08]

THAT THIS BOND RATINGS ARE GOING TO BE COMPROMISED? SHORT ANSWER IS NO. AND HERE'S WHY. WHEN THE RATING AGENCIES LOOK AT DE SOTO, THEY SAY, OKAY, WHAT IS THE CITY'S ABILITY TO PAY THE DEBT? DOES THE CITY HAVE THE FINANCIAL STRENGTH TO CARRY THIS LOAD? THE ANSWER IS YES. WHEN I WAS HERE TWO WEEKS AGO, I GOT PROBABLY A LITTLE BIT TOO TECHNICAL. BUT WHAT I WANTED TO PROVE TO YOU MATHEMATICALLY IS THAT THE CITY DOES HAVE THE ABILITY TO CARRY THIS LOAD WITH THE EXISTING TAX RATE STRUCTURE THAT YOU HAVE IN PLACE RIGHT NOW. SO THIS DEBT IN ISOLATION SHOULDN'T INCREASE THE TAX RATE FOR THE CITY OF DESOTO. THAT'S ON THE GOVERNMENTAL PROJECTS. I WENT FURTHER TO TELL YOU THAT YOU HAVE THREE OTHER BUCKETS OF REVENUE THAT ARE GOING TO BE USING TO PAY THIS DEBT ACCORDING TO THE PLAN. ONE IS THE WATER AND SEWER REVENUE TO PAY FOR THOSE PROJECTS. AND THIS DEBT ALONE, JUST IN ISOLATION, DOES NOT IMPACT THE RATE STRUCTURE THAT YOU HAVE IN PLACE IN THE WATER AND SEWER SYSTEM. THIRD, WE HAVE A DRAINAGE PROJECT FOR THE WOLF CREEK PROJECT. WHAT WE HAVE DONE HISTORICALLY IN THIS COMMUNITY IS THAT WHEN YOU HAVE DRAINAGE PROJECTS, WE ALLOCATE THOSE BURDENS TO THE DRAINAGE FUND. SO WE LOOK AT THE DRAINAGE FUND IN ISOLATION AND WE SAY, CAN THE CITY OF DESOTO, BASED ON EXISTING REVENUES IN THAT SPECIFIC FUND, CARRY THIS LOAD? BECAUSE WE DON'T WANT TO SHIFT ANY DRAINAGE BURDEN TO THE WATER AND SEWER SYSTEM, THE PROPERTY TAX, OR ANY OTHER FUNDS. YES, YOU CAN CARRY THAT. LAST BUT NOT LEAST, YOU HAVE THE NANCE FARM PROJECT. VERY SMALL PROJECT, BUT STILL IMPORTANT. THE PLAN HERE THAT WE DISCUSSED WITH YOUR STAFF WAS TO COVER THAT WITH HOTEL AND MOTEL OCCUPANCY TAX REVENUES AND THE HOTEL OCCUPANCY TAX REVENUES ARE 20 TIMES THE AMOUNT OF DEBT SERVICE THAT WOULD REQUIRE TO FINANCE THIS PIECE OF NANCE FARM. SO THAT'S THIS CERTIFICATE OF OBLIGATION IN ISOLATION. NOW GOING INTO THE FUTURE, ONE OF THE THINGS THAT WE DO FOR YOUR STAFF EVERY SINGLE YEAR, COUNSEL AND MAYOR, IS THAT WE RUN THE NUMBERS ON AT LEAST A FIVE YEAR PLAN. SOME YEARS WE HAVE DONE IT ON A TEN YEAR PLAN SO THAT WE CAN TELL YOUR STAFF, IF YOU UNDERTAKE THIS PROJECT AND WE MAKE REASONABLE ASSUMPTIONS, HERE'S WHAT YOU CAN EXPECT TO HAPPEN IN THE FUTURE. SO IN THIS CASE, WHAT WE DID IS THAT WE RAN A FIVE YEAR PLAN THIS TIME AROUND, AND WE WENT ALL THE WAY THROUGH 2031 BECAUSE WE WERE FUNDING TWO FISCAL YEARS WITH THIS ONE. SO WE RAN 27, 28, 29, 30 AND 31. AND WHAT I CAN TELL YOU IS THAT BASED ON REASONABLE ASSUMPTIONS ON GROWTH. SO WE SAY, FOR EXAMPLE, WE EXPECT THAT THIS COMMUNITY IS GOING TO GROW, GROW IN TAX BASE AT ABOUT 3% PER YEAR. YOU GUYS HAVE HISTORICALLY BEAT THAT SOME YEARS MORE, SOME YEARS LESS. BUT WE BELIEVE THAT'S A REASONABLE ASSUMPTION. YOU SHOULD BE ABLE TO MAINTAIN THE EXISTING TAX RATE STRUCTURE. JUST LOOKING AT THE DEBT ALONE. WE RUN THE SAME THING ON THE ON THE UTILITY SYSTEM AND ANY OTHER PROJECTS THAT YOUR STAFF BRINGS TO US, FOR US TO RUN THE NUMBERS AND ANALYZE. AND THE SHORT ANSWER IS YOU CAN CARRY THE FIVE YEAR PLAN THAT YOU HAVE IN PLACE RIGHT NOW. SO I KNOW I'VE BEEN SAYING A LOT, BUT THIS DEBT ALONE, AND BASED ON WHAT I SEE IN THE FUTURE, YOU SHOULD BE ABLE TO MAINTAIN YOUR CREDIT SCORE, WHICH I THINK IS REALLY WHAT GIVES YOU A METRIC ON HOW THE CITY IS DOING FINANCIALLY, BECAUSE IT'S NOT ME SAYING IT, IT'S NOT THE STAFF SAYING IT. IT'S THE THIRD PARTY OUT IN NEW YORK OR WHEREVER THEY SIT THESE DAYS SAYING, BASED ON ALL THESE THINGS, WE BELIEVE THE CITY OF DESOTO'S CREDIT SCORE IS X.

THANK YOU. DID I ANSWER YOUR QUESTION? YOU DID, AND I APPRECIATE YOU FOR THAT. AND I DON'T KNOW IF YOU CAN TALK TO THIS OR WOULD THIS BE MR. CORMIER. BUT YOU KNOW, THERE A COUPLE OF YEARS AGO WE HAD A SITUATION TO WHERE THE STATE CHANGED THE. THE AMOUNT OF REVENUE THAT A CITY COULD HOLD YEAR OVER YEAR. AND THEY CAP THAT OUT INSTEAD OF ROLLING OVER UNUSED PENNIES AS THE INDUSTRY LIKES TO USE. MR. CORMIER. AND MAYBE AGAIN, I THINK THIS I DON'T KNOW IF THIS IS YOUR EARS OR HIS, BUT IT WITH HIM SAYING, YOU KNOW, WE'RE IN A GREAT FINANCIAL STATE EVEN NOW, FIVE YEARS FROM NOW, TALKING TO WHAT MANY IN THE COMMUNITY CONSIDERED A $3 MILLION DOWNFALL OR FALLOUT WHERE WE COULD NOT PAY $3 MILLION, IS THAT TRUE? OR WHERE? BECAUSE I JUST WANT TO BRING CLARITY TO THAT ASSUMPTION ABOUT WHERE WE WERE FINANCIALLY. THE TAX NOTE. YES, YES, YES, THAT WAS PAID LAST YEAR, BUT WAS IT BECAUSE WE DIDN'T HAVE THE MONEY, THE THREE POINT, I MEAN, WE DIDN'T HAVE. NO, IT WASN'T BECAUSE OF THE MONEY. IT WAS THE RESTRICTIONS THAT SB TWO PUT ON US AS FAR AS OUR OVERALL TAX RATE. OKAY, OKAY. AND THEN, YOU KNOW, AND MAYOR, I THANK YOU FOR THE TIME I THERE IS A CONCERN ABOUT, YOU KNOW, AS WE HEARD THE RESIDENT THAT SPOKE DURING CITIZEN COMMENT, ALL VALID CONCERNS RIGHT AROUND HAMPTON

[01:10:02]

ROAD AND US PAYING FOR, YOU KNOW, THESE PROJECTS AND COUNTER-INTUITIVELY, OF US HAVING A NEGOTIATED AGREEMENT WITH COMMUNITY BAPTIST CHURCH, RIGHT. OR DID WE IS ARE WE SAYING THAT WE CAN'T AFFORD WE CAN'T AFFORD TO PAY FOR THAT, BUT WE CAN HAVE $49 MILLION OF DEBT. LIKE, I'M TRYING TO MAKE SENSE OF THIS. FOR THOSE RESIDENTS WHO ARE CONCERNED ABOUT THE TRANSACTIONS OR AS YOU KNOW, MY GENERATION WOULD SAY HOW WE'RE MOVING, RIGHT? AND IT RELATES TO WHAT WE'RE DOING. ALL THE PROJECTS WE HAVE ON THE FIRE AS FAR AS HAMPTON ROAD. AND I THINK MATT CARSON CAN HELP ME. BUT I THINK WE HAVE MULTIPLE REVENUE SOURCES THAT ARE GOING TO FUND THAT. IT'S JUST NOT GOING TO BE STRICTLY A BOND SALE. OKAY. AND WHAT I HEAR YOU SAYING IS THAT IT WON'T BE PROPERTY TAX PAYING. IT WON'T BE IT WON'T BE STRICTLY JUST A BOND SALE ON THE CITY. THERE ARE OTHER OTHER REVENUE SOURCES THAT'S GOING TO FUND THE PROJECT. OKAY. AND MAYOR, I JUST I APPRECIATE YOUR PATIENCE, BUT THIS WAS VERY CONCERNING FOR ME BECAUSE, YOU KNOW, WHEN OUR LAST MEETING, THERE WAS A LOT OF CONVERSATION ABOUT OUR TRANSPARENCY TO THE PUBLIC, AND I HAD TO GO BACK AND REMIND MYSELF, BECAUSE IT'S BEEN A LONG TIME SINCE WE INITIALLY TALKED ABOUT THE HOW WE WOULD FUND MACAU AND AQUATIC RECREATION CENTER, BUT I FOUND THAT, YOU KNOW, I WENT BACK TO 2022 WHEN WE FIRST HAD THE CONVERSATION IN JUNE 21ST THAT COUNCIL MEETING, AND THAT WAS A 7 TO 0 VOTE. AND WHEN MACAU PARK FIRST CAME UP FOR CONVERSATION AND IT INCLUDED MOSLEY POOL, WHICH IS ALREADY DONE, WE SEE THAT THAT RESULT IN THAT IT INCLUDED THE FIRE STATION ON PARKS, WHICH WE SEE THAT ALREADY DONE AS WELL, AS WELL AS STREETLIGHT RENOVATIONS, CONCRETE, ASPHALT. AND SO ONE THING THAT I LEARNED FROM THE CERTIFICATE OF OBLIGATIONS IS THAT THERE'S NOT JUST A NOTICE OF INTENT, BUT THERE'S ALSO THE PUBLIC HEARING THAT HAPPENS BEFORE WE DO THE RESOLUTION THAT TURNS INTO THE ORDINANCE. SO I JUST WANTED TO SAY THAT THIS IS CONVERSATION LIKE STARTED IN JULY OF OR EXCUSE ME, JUNE OF 2022 WITH THE SEVEN ZERO AGREEMENT TO INCLUDE MACAU IN PARK. AND THEN LAST YEAR IN MAY, THE 21ST SIX ONE WHICH ALSO INCLUDED MCCOWAN AS WELL. AND I WANT TO THANK MY COLLEAGUE DOWN AT THE END, COUNCILMEMBER RAFAEL, BECAUSE IN MY EXPLORATION, I CAME ACROSS THE YEAR OF AUGUST 4TH OF 2020, AND WHILE MCCOWAN WAS NOT INCLUDED IN THAT, THERE WERE PARK IMPROVEMENTS INCLUDED IN THAT PROJECT. AND ONE OF HER QUESTIONS TO THE CITY MANAGER AT THE TIME WAS, WHY CERTIFICATE? AND I APPRECIATE HER FOR THIS BECAUSE SHE ASKED ABOUT THE VOTERS BEING INVOLVED IN IN THE CONVERSATION. AND WHAT'S THE DIFFERENCE BETWEEN THE CERTIFICATE OF OBLIGATION VERSUS THE GENERAL OBLIGATION? RIGHT. ONE IS REQUIRES THE VOTE AND THE OTHER DOESN'T. BUT I THINK THERE'S ALSO THIS CONVERSATION OF WHAT CAN YOU CAN A CITY LEGALLY PUT UNDER THE CERTIFICATE OF OBLIGATION. RIGHT. BECAUSE IN THESE PROJECTS THAT I WENT BACK AS FAR AS 2017, 2018, THEY DIDN'T JUST INCLUDE STREETS, THEY ALSO INCLUDED PARK PROJECTS AS WELL. THE POOL, WHICH ARE QUALITY OF LIFE AMENITIES. IS THIS COMMON? AND MR. AYALA, IN A JOINT ANSWER TO THAT. ARE OTHER CITIES DOING THIS THAT YOU REPRESENT OR IS DE SOTO JUST AN ANOMALY TO THIS? SO WHAT I CAN TELL YOU IS A CERTIFICATE OF OBLIGATION HAS A NARROW SCOPE. I THINK WE TALKED ABOUT THAT TWO WEEKS AGO, WHAT THE LEGISLATURE DID BACK IN 2000, 21 BY NOW IS THAT THEY THEY NARROWED DOWN THE LIST OF PROJECTS THAT CAN BE FINANCED VIA A CERTIFICATE OF OBLIGATION. AND THEY CALL THAT DESIGNATED INFRASTRUCTURE. EVERY SINGLE PROJECT THAT THE CITY OF DE SOTO HAS FINANCED VIA A CERTIFICATE OF OBLIGATION FALLS UNDER DESIGNATED INFRASTRUCTURE. IF IT HADN'T, THE ATTORNEY GENERAL WOULD NOT HAVE APPROVED THAT SO DESIGNATED INFRASTRUCTURE AS WE STAND TODAY. AND THIS COULD CHANGE BECAUSE THE LEGISLATURE IS MEETING RIGHT NOW, ARE STREETS, ROADS, PARKS, THINGS THAT ARE FOR THE BENEFIT OF THE COMMUNITY. WHAT IS NOT INCLUDED, FOR EXAMPLE, WOULD BE YOU WANT TO FINANCE A SOCCER STADIUM THAT'S NOT DESIGNATED INFRASTRUCTURE. BUT IF YOU'RE GOING TO DO LIKE A PARK PROGRAM THAT YOU HAVE BEEN DOING, IT FALLS WITHIN THAT SCOPE. SO YOU HAVE THE AUTHORITY TO ISSUE A CERTIFICATE OF OBLIGATION FOR THAT KIND OF PROJECT. NOW, IT IS COUNCIL'S PREROGATIVE. WHETHER YOU DO THAT OR YOU PUT IT UP FOR A VOTE IN OTHER CITIES, BECAUSE WE'RE NOT THE ONLY CITY THAT YOU. OH, SORRY, I FORGOT ABOUT THAT. YES. SO THE MAJORITY OF THE CITIES THAT I REPRESENT ISSUE CERTIFICATES OF OBLIGATION. THERE'S OBVIOUSLY A PROCESS TO GO THROUGH THAT. THE WAY THAT WE RECOMMEND OUR CLIENTS DO IT IS WHAT WE DO HERE IS THAT WE FIRST COME FORWARD

[01:15:05]

AND SAY, HEY GUYS, THIS IS A PRELIMINARY PLAN. THERE'S NO ACTION. JUST HEADS UP, THIS IS COMING. WE COME HERE A SECOND TIME NOW WITH AN ACTION ITEM. IN THIS CASE, WE HAVE A NOTICE OF INTENT THAT YOU CAN CONSIDER THAT NOTICE OF INTENT DRAFTED BY OUR BOND ATTORNEYS. AND IT OUTLINES SPECIFICALLY THE PROJECTS THAT FALL UNDER THIS BOND SO THAT YOU CAN KNOW EXACTLY WHAT YOU'RE DOING. THIS CASE, WE REWORKED THE TABLE. SO THAT'S THAT'S WHAT THE PROCESS LOOKS LIKE. NOW. OTHER COMMUNITIES AROUND HERE IN DALLAS COUNTY DO THEY ISSUE CERTIFICATES OF OBLIGATION? YES. SOME MORE, SOME LESS. IT REALLY DEPENDS ON THE NATURE OF THE COMMUNITY. GROWTH COMMUNITIES TEND TO FUND MORE THAN THOSE THAT ARE LANDLOCKED AND ARE NOT GROWING. IT MAKES PERFECT SENSE. OKAY. THANK YOU. THANK YOU, COUNCIL MEMBER PARKER. THANK YOU, MADAM MAYOR. THANK YOU FOR YOUR PRESENTATION. THANK YOU. AND I MAY HAVE SOME QUESTIONS.

SO YOU MIGHT WANT TO HANG TIGHT FOR JUST A MOMENT. CAN YOU GO TO THE PAGE WHERE IT HAS THE ITEMS WITHOUT VOTER APPROVAL? I BELIEVE IT'S PAGE. WILL IT SLIDE FOR. SLIDE FOUR? YEAH. SO AS I'M LOOKING THROUGH THIS AND I JUST WANT TO MAKE SURE I'M CLEAR BECAUSE WE KEEP SAYING WESTMORELAND, I DO SEE WESTMORELAND ON THE LIST, BOTH ON 2121 AND 2022. AND THERE IS A SIGNIFICANT AMOUNT THERE. AND SO FIRST, I MEAN, IT'S JUST A SERIES OF QUESTIONS. SO MAYBE, MR. CORMIER, YOU MAY HAVE TO ANSWER THESE QUESTIONS. HAVE THOSE HAS THE ITEMS FIRST. I'M SORRY. ARE ANY OF THESE OUTSTANDING OR THESE CERTIFICATE OF OBLIGATION. ARE THEY ARE THEY PAID FOR. IS EVERYTHING PAID FOR OR ARE THEY ALL OUTSTANDING? WHEN YOU SAY PAID FOR, ARE THEY ARE WE HAVE THEY MATURED. THAT'S IT. NO, NO THOSE ARE WHEN THOSE WERE SOLD THEY WERE ALL 20 YEAR BONDS. OKAY. SO WE'RE STILL IN THE MIDST OF THESE. SO THE WESTMORELAND ROAD IS ON HERE.

AND THE REASON I'M BRINGING IT UP IS BECAUSE YOU ALSO HAVE A LINE ITEM THAT SAYS DANIEL DILL.

AND ON THIS PARTICULAR ONE IS DANIEL DILL, THE ONE ON 2024, IT SAYS DANIEL DILL. SO WHERE WHEN SHE WAS TALKING ABOUT WESTMORELAND, WESTMORELAND. IS THAT THE SAME? BECAUSE IT SAYS WESTMORLAND UP THERE. BUT IT'S REALLY DANIEL THAT YOU'RE TALKING ABOUT IN THIS BOND, RIGHT? NO, WE'RE TALKING WE'RE SPEAKING OF WESTMORELAND IN THIS BOND SALE. OKAY. WELL THAT'S CONFUSING. I DON'T I DON'T I'M SORRY, CITY MANAGER, I DON'T REALLY NEED I'M JUST SAYING IT'S CONFUSING FOR ME. IT'S IMPORTANT TO CLARIFY THE DIFFERENCE BETWEEN DANIEL DILL AND WESTMORELAND. THERE ARE TWO DIFFERENT PROJECTS. OKAY. BUT ON ON THE ACTUAL DOCUMENT UP HERE, IT SAYS DANIEL DILL. THE REASON WHY I'M SAYING THAT SO THERE'S ACTUALLY THE COUNTY IS DOING A 5050 CONTRIBUTIONS FOR DANIEL DILL, AND THEY NEEDED $9 MILLION OF THE CITY TO, TO SATISFY THE 5050 WORK ON DANIEL DILL. THAT'S THE REASON THAT THE $9 MILLION EXISTED. AND THAT WAS FOR LAST YEAR. CORRECT. OKAY. SO THE 1.5 ON 22 WAS FOR WHAT? BECAUSE IT SAYS DANIEL DILL ALSO. SO THE CITIES MATCH IS ROUGHLY ABOUT $12 MILLION BECAUSE THERE'S $9 MILLION. THAT IS A 5050 MATCH.

AND THEN THERE IS IMPROVEMENTS TO SIDEWALKS AND OTHER AREAS THAT WE NEEDED THREE MORE MILLION DOLLARS. SO IN TOTAL, THE CITY'S CONTRIBUTIONS ARE $12 MILLION. SO THE ONE THAT WE'RE TALKING ABOUT TODAY, TONIGHT HAS 9 MILLION ON IT, RIGHT? YES. THE ONE ON 2022 SAYS 1.5 MILLION.

AND THEN THE ONE ON 2024 SAYS 9 MILLION. I STILL DON'T GET WHAT YOU JUST EXPLAINED, BUT I DON'T NEED TO. I JUST NEEDED TO UNDERSTAND. ARE WE TALKING ABOUT THE SAME TWO ROADS? BECAUSE WESTMORELAND IS NUMBER IS NUMBER FOUR AS WELL. IT SAYS IT TWICE IS WHY I'M ASKING THE QUESTION, WHY IS IT THE SAME THING OR TWO DIFFERENT THINGS? I THINK CORRECT ME IF I'M WRONG, BUT THE WEST, THE DANIEL DALE PROJECT STOPS AT WESTMORELAND ROAD, SO THAT'S WHAT THAT IS AT THE TOP.

OKAY. YES. SO THE WESTMORELAND THAT WAS BEING SPOKE OF EARLIER IS ACTUALLY WESTMORELAND ROAD.

YES. SO THAT PIECE WHERE IT SAYS 2 MILLION HERE AND 4.5 HERE, THAT AMOUNT OF MONEY HAS BEEN EXPENDED ON WESTMORELAND ROAD. YES. WHAT HASN'T BEEN EXPENDED HAS NOT BEEN EXPENDED, HAS NOT BEEN EXPENDED. BUT WE'VE DRAWN BOND MONEY. OKAY. I'M SORRY I SAID THAT. I SAID WE HAVE DRAWN BOND MONEY FOR THE WAS IT 2 MILLION AND THEN 4.5 MILLION. BUT WE HAVE NOT SPENT ALL THOSE FUNDS. OKAY. SO THOSE AMOUNTS OF MONEY ARE JUST ARE SOMEWHERE THERE JUST SOMEWHERE. RIGHT. AND THEN ON THIS PARTICULAR ONE WE'RE TALKING ABOUT TONIGHT, THERE'S NOTHING ON THERE FOR THAT. THAT'S THERE'S NOTHING ON THERE FOR THAT WESTMORELAND PIECE RIGHT THERE. THAT'S FOR A WHOLE DIFFERENT PROJECT THAT THAT IS TO ADD ADDITIONAL FUNDS TO THE 2,000,001.5 MILLION

[01:20:03]

THAT'S GOING TO ADD WE'RE GOING TO ADD 9 MILLION TO THOSE TWO BOND SALES. OKAY. I'M SORRY, MR. CORMIER. I REALLY GOT CONFUSED HERE. LET ME, LET ME LET ME TRY TO STEP THROUGH IT REALLY, REALLY FAST. OKAY. SO THERE WE GO. WE SAID AT THE TOP IT SAYS WESTMORELAND ROAD. THE REASON I'M ASKING THE QUESTION IS THIS WESTMORELAND ROAD IS THE SAME AS THE TWO ON 2021 AND 2022. YES.

OKAY. THE ONE THAT WAS FOR LAST YEAR WAS FOR DANIEL DALE ROAD. YES. OKAY. I WANT TO MAKE CERTAIN. AND SO ALL OF THESE ITEMS THAT SAY ANNUAL CONCRETE, ANNUAL ASPHALT ON THE OTHER BONDS, THEY WERE ALSO ANNUALS. YES. WELL YES THEY WERE. SO ALL OF THAT HAS BEEN DONE. DO YOU HAVE TO SPEAK WITH DEVELOPMENT SERVICES? I DO KNOW THEY HAVE AN ONGOING CONCRETE AND ASPHALT PROGRAM AND ALSO AN ALLEY PROGRAM. I'D BE INTERESTED IF YOU COULD, YOU KNOW, YOU KNOW, GIVE ME A LITTLE LEVITY ON THAT AND JUST I'D BE INTERESTED TO SEE THAT, YOU KNOW, WHERE WHAT THE STAGE IS. BECAUSE IF YOU LOOK BACK AT THE PREVIOUS PAGE, CAN WE GO BACK TO THE PREVIOUS PAGE REALLY QUICKLY? IF YOU LOOK BACK AT THAT PAGE, YOU SEE ANNUAL CONCRETE. YOU SEE CONCRETE 1.5 CONCRETE ONE, YOU SEE 2 MILLION. AND THEN ON THIS ONE YOU SEE SOME. SO I'M ASKING WHERE ARE THEY IN THEIR STAGES. I KNOW THE MONEY HAS ALREADY BEEN, YOU KNOW, RECEIVED OR SHOULD I SAY CAPTURED, BUT HAS IT BEEN EXPENDED BECAUSE WE HAVE QUESTIONS THROUGH THE PUBLIC.

CAN I, CAN I JUMP IN REAL QUICK? WHAT WE HAVE ON HERE IS CONSIDER A RESOLUTION APPROVING THE PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION. WE SEEM TO BE GOING BACK AND LOOKING AT THESE OTHER. YES, I JUST WANTED TO PASS AND REALLY, I MEAN, IF WE NEED TO HAVE THAT AS A SEPARATE AGENDA ITEM, IF WE'RE GOING TO GET THAT IN THE WEEDS ON THESE, JUST SO THE PUBLIC HAS A RIGHT TO LISTEN AND BE EDUCATED AS TO WHERE ALL OF THESE OTHER PROJECTS HAVE BEEN FUNDED. OKAY. WELL THEN LET ME LET ME SEW IT UP REALLY, REALLY QUICKLY BECAUSE I WAS THAT, THAT THAT SIX ONE, I WAS THE ONE WHO DECIDED NOT TO GO FORWARD BECAUSE BEFORE I BECAME A COUNCIL MEMBER, AS I SAID BEFORE, I ACTUALLY DIDN'T THINK THIS SHOULD HAVE GONE FORWARD WITHOUT A VOTE OF APPROVAL. SO I'M JUST GOING TO LET IT SIT RIGHT THERE. HE'S ALREADY EXPLAINED THAT WE SHOULD GO THROUGH AND GET THROUGH THESE THINGS. SO AS OF RIGHT NOW, I'M JUST LOOKING AT IT AND I'M TRYING TO UNDERSTAND AND IT'S NOT MAKING SENSE TO ME. SO WITH THAT, I YIELD BACK. THANK YOU. THANK YOU, STAFF DOCTOR MARX.

THANK YOU, MADAM MAYOR. I JUST NEED A POINT OF CLARIFICATION, PLEASE. IF WE LOOK AT THE PROJECTED FINANCE FOR 2024, I DON'T SEE WESTMORELAND. AND I'M CONCERNED ABOUT WESTMORELAND BECAUSE I TRAVEL IT EVERY DAY IN MY CAR SCREENS EVERY TIME I DRIVE DOWN THAT STREET. RIGHT.

SO IF I LOOK AT 20, 24, I DON'T SEE WESTMORELAND ON THERE. IS IT? I MEAN, BUT YOU'RE TELLING ME THAT IT'S GOING TO BE ADDRESSED. SO I'M WONDERING WHAT WHAT WHAT AM I LOOKING AT? I'M SORRY, I COULD BE TOTALLY OFF BASE, BUT I DON'T SEE IT BEING FINANCED. SO COUNCIL, LET ME MAKE A CLARIFICATION. IT IS UP TO THE CITY COUNCIL TO DETERMINE THE CAPITAL IMPROVEMENT PROGRAM.

SO LAST YEAR IT WAS NOT CONSIDERED. DANIEL DALE WAS FOCUSED ON. SO TO PROVIDE FOR A STOPGAP TO TAKE CARE OF THAT SPECIFIC STREET. YOU STILL HAVE PLEASANT RUN THAT IS ON THE BOOKS, AND THERE'S ONLY 3 OR $4 MILLION ON IT, AND THE COST OF IT IS $22 MILLION. SO THERE'S A LOT OF PROJECTS THAT WE HAVE NOT ADDRESSED. NOW, DO WE WANT TO START START LOOKING AT PRIORITIES AND WHAT THOSE PRIORITIES ARE THEN. THEN THAT'S SOMETHING THAT THE CITY COUNCIL WILL HAVE TO MAKE THE TOUGH DECISION ON, ON MAKING MAKING SURE THAT THIS THIS HAPPENS IN LAST YEAR'S AND LAST YEAR'S CAPITAL PROGRAM. WESTMORELAND WAS STILL IN THE DESIGN PHASE, SO THERE WAS STILL SOME AMBIGUITY TO IT OF WHAT'S GOING ON. AND THERE WAS RIGHT OF WAY ACQUISITION, UTILITY RELOCATION AND SO ON. SO THIS YEAR NOW, STAFF IS READY TO SAY THE DESIGN IS FINISHED. THE RIGHT OF WAY IS SEMI COMPLETE. THE UTILITIES ARE SEMI COMPLETE. NOW WE NEED TO MOVE TO THE CONSTRUCTION PHASE. NO DIFFERENT THAN ANY OTHER PROJECT THAT ANY CITY WOULD DO WITH MULTIPLE PHASES. SO IT DOESN'T. EVEN IF IT SKIPS A YEAR, IT DOESN'T MEAN THAT THE PROJECT IS FORGOTTEN. IT JUST MEANS THAT THE TIMING IS NOT READY FOR IT. OKAY, SO IT SHOULDN'T BE ON THIS SHEET THAT I'M LOOKING AT. NO, NO, BECAUSE THAT'S NOT WHAT THE CITY COUNCIL APPROVED. OKAY, MR. CITY MANAGER, JUST FOR CLARITY HERE, BECAUSE IF I REMEMBER CORRECTLY, WHEN WESTMORELAND. WHEN, WHEN WE WERE, WHEN THE CITY WAS GOING THROUGH DESIGN PHASE, THERE WAS ISSUE WITH THE EASEMENT FROM THE OWNERS, WHICH DREW IT OUT. I REMEMBER THIS DISTINCTLY LIKE WE HAD A LONG DRAWN OUT PERIOD, MAYBE 6 TO 9 MONTHS, WHERE THEY COULD NOT STAFF COULD NOT GET THE OWNER, WHO WAS NOT EVEN IN THE UNITED STATES, OR THEY WERE IN CALIFORNIA, THEY WERE IN

[01:25:05]

CALIFORNIA, AND WE COULD NOT GET THEM TO AGREE TO THE NEGOTIATED AMOUNT FOR THAT, AN EASEMENT WHICH DREW THAT DESIGN OUT AND THAT PROJECT. I UNDERSTAND THE PAY AS YOU GO AS FAR AS IT RELATES TO THE CITY NOT WANTING TO PAY MORE INTEREST ON GOING OUT FURTHER WITH DEBT AND TAKING THE FULL GAMUT AND JUST BITING IT OFF. RIGHT, SO ONLY PAYING FOR THE DESIGN PIECE. AND THAT WAS MY INTERPRETATION OF WESTMORELAND. BUT WHEN WE GET WE STARTED, YOU BROUGHT UP DANIEL DALE AND THEN THE CITY WANTING TO MOVE IN OR THE COUNCIL MOVING IN A DIFFERENT DIRECTION. MY UNDERSTANDING FROM THAT, AGAIN, IS THAT DALLAS, BECAUSE DANIEL DALE, IN MY CONVERSATIONS WITH FORMER MAYOR AND FORMER STATE REP CARL SHERMAN. DANIEL DALE WAS A PROJECT THAT HE WAS WORKING ON WHILE HE WAS IN THIS SEAT. SO WHAT YOU ALL GOT WAS A KNOCK ON THE DOOR FROM DALLAS COUNTY AND THEIR AGREEMENT TO HELP FUND THAT PROJECT, WHICH BROUGHT IT UP IN ITS PRIORITY LEVEL, IF I'M RIGHT OR WRONG, WHICH IS WHY IT THEN BECAME DANIEL DALE AND WESTMORELAND FROM THAT SORT OF SPEAK, BECAUSE THE CITY HAD HAD TROUBLE GETTING DALLAS COUNTY OR HAVING THAT INFLUENCE TO WHERE WE COULD GET THEM AT THE TABLE TO HELP WITH SOME OF THESE PROJECTS. IT PLEASE. I KNOW I'M NOT HALLUCINATING MOST OF THIS. NO, YOU'RE NOT HALLUCINATING. BUT BUT WHAT YOU'RE SAYING STILL DOES NOT NEGATE WHAT I'M ASKING FOR. CLARIFICATION OF WHAT I NEED FOR THIS TO HOW THIS WOULD BE SPENT. NO, YOU'RE NOT OUT OF ORDER. BUT IT DOESN'T NEGATE THE QUESTION THAT I JUST POSED TO MAKE SURE THAT I HAD CLARITY AS TO WHAT MY QUESTIONS ARE. SO THANK YOU COUNCIL. THANK YOU COUNCIL. WE DO HAVE A MOTION ON THE FLOOR. MAYOR PRO TEM, DID YOU DO YOU HAVE A QUESTION OR COMMENT? I WAS JUST GOING TO COMMENT. THANK YOU, MADAM MAYOR.

THANK YOU BOTH FOR BEING HERE AND FOR ANSWERING THE QUESTIONS AND PRESENTATION. BUT I BELIEVE WE HAD A SECTION OF PLEASANT RUN WHERE WE HAD THE SAME SITUATION. WE WERE WAITING FOR SOME PROPERTY, THE PROPERTY. CORRECT. OKAY. I JUST WANTED TO MAKE SURE. CORRECT. COUNCIL, WE HAVE A MOTION ON THE FLOOR. YES. COUNCIL MEMBER RAFAEL. THANK YOU, MADAM MAYOR. GOOD TO SEE YOU. THANK YOU FOR COMING BACK AND THANK YOU FOR THE RESPONSES. IT HELPED ME WITH SOME OF THE QUESTIONS I ALREADY HAD, BUT I THINK MY QUESTION IS MORE RELATED TO THE MARKET. SO CAN YOU TALK ABOUT THE CURRENT MARKET CONDITIONS AND HOW, YOU KNOW, KIND OF WHERE WE ARE TODAY? BECAUSE A LOT IS GOING ON AND HOW IT AFFECTED THE SALE OF THE BOND? YES. SO, I MEAN, IT'S NO SURPRISE TO ANYONE THAT THE MARKET MAY BE A LITTLE VOLATILE THESE DAYS. IT'S JUST THE POLITICAL ENVIRONMENT WE'RE IN. HOWEVER, AS FAR AS HIGH GRADE MUNICIPAL BONDS GO, WHICH IS WHERE WE FALL, THOSE HAVE BEEN RATHER STABLE. SO, FOR EXAMPLE, EVEN THOUGH WE GOT SOME NEWS TODAY ABOUT SOME TRADE ISSUES THAT WE HAVE GOING ON RIGHT NOW AT A NATIONAL LEVEL, TAX EXEMPT INTEREST RATES DIDN'T MOVE. SO THE STOCK MARKET MOVED. THE TAX EXEMPT INTEREST RATES DIDN'T MOVE. THAT DOESN'T MEAN THAT NOTHING'S GOING TO HAPPEN BETWEEN NOW AND WHEN YOU ACTUALLY TAKE ACTION ON THE POSSIBLE ISSUANCE OF THE CERTIFICATES OF OBLIGATION. NOW, I CANNOT PREDICT THE FUTURE. WHAT I CAN TELL YOU IS THAT WHEN THERE IS UNCERTAINTY, INVESTORS TEND TO FLY TOWARDS SAFETY. AND WHAT DOES THAT MEAN? IT MEANS THAT THEY WANT TO PROTECT THEIR MONEY SOMEHOW. AND ONE WAY TO DO THAT IS TO INVEST IN HIGH GRADE BONDS. AND THAT HAPPENS TO FALL WITHIN THE HIGH GRADE BOND CATEGORY. NOW, INTEREST RATES WILL MOVE HOPEFULLY DOWN FOR YOU, BUT YOU'RE JUST SUBJECT TO MARKET RISK UNTIL YOU TAKE ACTION ON THE CERTIFICATES OF OBLIGATION. IF YOU WERE TO ASK ME TODAY, WHAT INTEREST RATE WOULD THIS PHOTO GET TODAY? IF YOU PRICED THIS BOND TODAY, I THINK YOU'LL BE A LITTLE BIT UNDER 4%. IF YOU WERE TO PRICE TODAY, THE BUDGET THAT WE HAVE HERE IS AROUND 4.2%. THAT'S THE BUDGET THAT WE HAVE BEEN RUNNING ON THIS PROGRAM. AGAIN, IT'S JUST THE BUDGET. THAT'S ALL IT IS. BUT I TRY TO ALWAYS PUT A BUFFER IN THERE SO THAT YOUR YOUR STAFF UNDERSTANDS THAT IF WE END UP IN THAT SCENARIO TWO MONTHS FROM NOW, THAT THEY'RE, THAT THEY HAVE THE ADEQUATE BUDGET ON ALL THE FUNDS THAT I JUST DESCRIBED TO PAY FOR THE BONDS HOPEFULLY WE'RE UNDER. BUT AGAIN, THE MARKET RIGHT NOW IS OKAY. IT'S BEEN COOPERATING FOR US AS FAR AS BONDS GO. YOU KNOW, JUST WE'RE JUST GOING TO HAVE TO SEE WHAT HAPPENS BETWEEN NOW AND THEN. IF I SEE, FOR EXAMPLE, THAT THE MARKET IS IN DISARRAY AND THAT IT WOULDN'T MAKE SENSE FOR THE SODA TO ACCESS THE MARKET IN MAY, THE FIRST PERSON I WOULD CALL WOULD BE MR. KUMAR TO TELL HIM, TRACY, LET'S HIT THE PAUSE BUTTON HERE AND RECONVENE AT THE NEXT COUNCIL MEETING, WHICH WOULD BE, YOU KNOW, SECOND MEETING IN MAY IF THAT WERE TO HAPPEN. SO WE WATCH THE MARKET ON A REGULAR BASIS HOPEFULLY I APPRECIATE THAT.

THANK YOU. AT THIS TIME, COUNCIL, WE HAVE A MOTION ON THE FLOOR TO ACCEPT AS PRESENTED.

THAT MOTION WAS MADE BY MAYOR PRO TEM HUGHES, SECOND BY COUNCILMAN BYRD. AT THIS TIME, WE DO NOT HAVE OUR VOTING MACHINE UP TONIGHT. SO WE'RE GOING TO DO JUST A ROLL CALL, STARTING WITH YOU, MAYOR PRO TEM. YES. COUNCIL MEMBER. CHISHOLM. YES. DOCTOR. MARX. NO.

MAYOR. PROCTOR. YES. COUNCILMAN. BURT. YES. COUNCILMAN. COUNCIL MEMBER. RAFAEL. YES. COUNCIL

[01:30:06]

MEMBER. PARKER. NO. THAT MOTION PASSES FIVE TWO. THANK YOU. COUNCIL. I WILL GO TO THE NEXT

[3. Consider award of a bid to CLW Water Group, LLC in the amount of $9,204,000 for the Westmoreland Pump Station Rehabilitation Project, approving a total project budget of $10,124,400 to include project contingency, and authorizing the City Manager to negotiate and execute all related contract documents]

ITEM ON THE AGENDA, WHICH IS CONSIDER THE AWARD OF A BID TO C L WATER GROUP, LLC IN THE AMOUNT OF $9,204,000 FOR THE WESTMORELAND PUMP STATION REHABILITATION PROJECT, APPROVING A TOTAL BUDGET OF 10,100,000 $124,400 TO INCLUDE PROJECT CONTINGENCY AND AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND EXECUTE ALL RELATED CONTRACT DOCUMENTS.

MAKING THE PRESENTATION IS MR. BRANDON LACY, PUBLIC UTILITIES DIRECTOR. THANK YOU. GOOD EVENING. THANK YOU, MAYOR, AND GOOD EVENING, COUNCIL. LET'S TALK ABOUT ANOTHER PROJECT ALONG WESTMORELAND. THE ITEM BEFORE YOU THIS EVENING IS A REQUEST TO AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONTRACT WITH W WATER GROUP IN THE AMOUNT OF 9,204,000, IN APPROVAL OF OVERALL PROJECT BUDGET, INCLUDING THE CONTINGENCY OF $10,124,400 FOR THE REHABILITATION OF THE WESTMORELAND PUMP STATION. I JUST A LITTLE BIT OF HISTORY OF HOW WE GOT TO THIS DESTINATION THIS EVENING. IN JUNE 2023, THE CITY COUNCIL APPROVED A PROFESSIONAL SERVICE DESIGN CONTRACT WITH GARVER TO START ENGINEERING WORK FOR THE REHABILITATION OF THE CITY'S LARGEST PUMP STATION. THIS PROJECT, IF YOU RECALL, WAS INCLUDED IN OUR 2021 WATER DISTRIBUTION MASTER PLAN AS A PRIORITY PROJECT. DUE TO THE AGE AND CONDITION OF THE PUMP STATION, THIS PUMP STATION WAS ACTUALLY PUT ONLINE BACK IN 1985, AND AS SUCH, MOST OF THE EQUIPMENT HAS SURPASSED ITS USEFUL SERVICE LIFE. THE DESIGN WAS COMPLETED ACTUALLY IN SUMMER OF 2024, AND INITIAL AND INITIAL BID SOLICITATION WAS RECEIVED FOR THIS PROJECT. IN SEPTEMBER OF 2024, WE RECEIVED FOUR BIDS THAT WERE ABOVE THE OPINION OF PROBABLE CONSTRUCTION COST AND CONSEQUENTLY ABOVE THE CITY'S BUDGET, SO STAFF RECOMMENDED THAT THE CITY REJECT ALL BIDS. SUBMISSIONS, WHICH WAS APPROVED DURING THE NOVEMBER 19TH, 2024 CITY COUNCIL MEETING. IN THE IN-BETWEEN TIME BETWEEN NOVEMBER AND NOW, THE PUBLIC UTILITIES STAFF, ALONG WITH OUR CONSULTANT FIRM GARVER, REVIEWED THE PROJECT FOR OPPORTUNITIES TO VALUE ENGINEER SOME COMPONENTS AS WELL AS PHASE OUT CERTAIN ASPECTS OF THE PROJECT. THE CITY RE-ADVERTISED THE BID IN JANUARY 2025 AND RECEIVED FIVE COMPETITIVE BIDS, WITH CLUE WATER GROUP AND THE LOWEST RESPONSIBLE BIDDER. THE CITY'S CONSULTANT REVIEWED THE BID SUBMITTAL FOR ACCURACY AND CHECKED REFERENCES LISTED AND FORMALLY RECOMMENDED. W TO BE AWARDED FOR THE BID. STAFF IS RECOMMENDING TONIGHT THAT THE CITY COUNCIL AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE A CONSTRUCTION CONTRACT WITH W WATER GROUP IN THE AMOUNT OF 9,240,000, AND APPROVING A TOTAL PROJECT BUDGET OF $10,124,400. FUNDING FOR THIS PROJECT IS INCLUDED IN FUND 508, AND THROUGH FUTURE BOND SALE PROCEEDS. ESTIMATED CONSTRUCTION FOR THIS PROJECT IS EXPECTED TO BE 16 MONTHS, AND I AM AVAILABLE FOR ANY QUESTIONS YOU MAY HAVE OF ME. THANK YOU MISTER LACEY FOR THOSE COUNCIL. YES. I'M NOT SURE WHOSE LIGHT WAS ON FIRST.

WE'LL LET THE LADY GO FIRST. COUNCIL MEMBER RAFAEL. THANK YOU, THANK YOU. LACEY. I'M SORRY. QUICK QUESTION. SO LET'S SEE. THANK YOU FOR GOING OUT FOR REBID. SO WE APPRECIATE THAT AND COMING IN WITH THIS LOWER BID. BUT COULD YOU TALK ABOUT WHAT IS THE SIGNIFICANCE OF THIS WATER PUMP. IS THIS A PART OF OUR MASTER PLAN. THE WATER MASTER PLAN. AND THEN THE BOND SALE THAT WE JUST APPROVED OR, YOU KNOW, GOING TO THAT NEXT STEP IS, IS THAT AMOUNT THIS IS THAT AMOUNT COVERING THIS. OKAY. SO THE SIGNIFICANCE OF THIS PROJECT, THIS IS THE LARGEST PUMP STATION IN THE CITY OF DESOTO. AND IT ACTUALLY SERVES CONSERVE WATER THROUGHOUT THE ENTIRE COMMUNITY. AT LAST CHECK IT PUMPS ABOUT 72% OF THE TREATED WATER RECEIVED FROM DALLAS WATER UTILITIES. IT WAS INCLUDED AS A THE FOURTH PROJECT LISTED IN OUR 2021 MASTER PLAN, WITH HAMPTON ROAD PUMP STATION BEING THE FIRST THAT WE JUST COMPLETED LAST YEAR. AS FAR AS THE BOND SALE GOES, THE FY 24 BOND SALE APPROPRIATED APPROXIMATELY $5 MILLION TOWARDS THE WESTMORELAND PUMP STATION AND THE BOND. THE NOTICE THAT Y'ALL JUST APPROVED THE. THE INTENT IS TO APPROPRIATE ANOTHER $5 MILLION IN THIS BOND SALE FOR THIS PROJECT. OKAY. AND THEN YOUR AND THEN THIS PARTICULAR COMPANY. I'M SO SORRY. AND WITH THIS PARTICULAR COMPANY, IS THIS A COMPANY THAT YOU FEEL CONFIDENT ABOUT. WE CAME IN AT A LOWER PRICE. AND IS THIS PRICE GUARANTEED. YOU KNOW TARIFFS ARE GOING, YOU KNOW INTO PLAY HERE SOON. SO I'M JUST CURIOUS ABOUT YOU KNOW JUST YOU KNOW, ARE WE SET WITH THIS PRICE. AND ARE YOU FAMILIAR WITH THIS COMPANY.

OKAY. SO I AM NOT FAMILIAR WITH THIS COMPANY. HOWEVER OUR CITY'S CONSULTING FIRM HAS DONE OTHER PROJECTS OF LIKE MAGNITUDE WITH THIS COMPANY, AND THEREFORE THEY WERE COMFORTABLE MOVING FORWARD

[01:35:02]

WITH THE RECOMMENDATION FOR BID AWARD. ALL THE REFERENCES CHECKED OUT. WE DIDN'T WE DIDN'T HAVE ANY ISSUES THERE AS FAR AS THE PRICE IS CONCERNED. YOU KNOW, OUR OUR PURCHASING POLICY, WE DO, YOU KNOW, ASK FOR THE 10% CONTINGENCY ABOVE, YOU KNOW WHAT THE CONTRACT AWARD WOULD BE.

ANYTHING ABOVE THAT, YOU KNOW, AS FAR AS CHANGE ORDERS, WE WOULD HAVE TO GO, YOU KNOW, BACK BEFORE THE CITY COUNCIL, BUT AS OF THIS TIME, WE DON'T ANTICIPATE THAT. OKAY. AND THANK YOU FOR BRINGING THAT UP, BECAUSE I THINK THAT'S PART OF MY CONCERN IS WHEN THE CHANGE ORDERS HAPPEN AND THE COMPANIES THAT COME BACK AND FORTH, AND SO IS THAT SOMETHING THAT'S CONSULTANT KIND OF WATCHES AND MONITORS JUST TO ENSURE THAT THAT EVERYTHING BUDGET WISE IS TRACKING. SO THE CONSULTANT ACTUALLY DOES WATCH AND WE WATCH IT AS WELL AS A PART OF OUR CONTRACT WITH GARVER. THEY IT DOES INCLUDE CONSTRUCTION OVERSIGHT SERVICES. YOU KNOW WHEN YOU WHEN YOU DO UTILITY PROJECTS OR ANY TYPE OF INFRASTRUCTURE PROJECTS, UNFORTUNATELY EVERYTHING IS BURIED BENEATH THE GROUND. SO SOMETIMES YOU DO RUN INTO UNFORESEEN CIRCUMSTANCES. BUT GENERALLY SPEAKING, WE DO TRY TO KEEP THAT, YOU KNOW, TO A MINIMUM AND MAKE SURE THAT WE'RE ONLY, YOU KNOW, SPENDING THE NECESSARY FUNDING. OKAY. THANK YOU, I APPRECIATE THAT. AND THE COMPLETION FOR THIS PROJECT IS ESTIMATED. THE ESTIMATED COMPLETION IS ABOUT 16 MONTHS. SO ALL IF ALL GOES WELL, WE'RE LOOKING AT PROBABLY A SUBSTANTIAL COMPLETION AROUND AUGUST OF 2000, 26 AND A FINAL COMPLETION SHORTLY THEREAFTER, PROBABLY FALL OF 2026. OKAY. THANK YOU SO MUCH. I APPRECIATE AN INVITATION. YOU'RE WELCOME, COUNCILMAN BYRD. THANK YOU, MADAM MAYOR. MR. LACEY, CONGRATULATIONS. I REMEMBER THE LAST TIME YOU WERE BEFORE US. WE KIND OF GAVE YOU A HARD TIME, AND IT PAID OFF $5 MILLION. SO CONGRATULATIONS ON STEPPING UP TO THE CHALLENGE. I HAVE A QUESTION FOR YOU. I FORGOT MY QUESTION IN THE FUNDING. I REMEMBER WE WON A AN AWARD FROM US CONGRESSWOMAN JASMINE CROCKETT FOR. IS THIS THE PROJECT THAT WE GOT MONEY FROM OUR STATE? I MEAN, OUR US REPRESENTATIVE. I'M NOT FOR THIS NOW. WE DID SOME WE SUBMITTED SOME FUNDING FOR IT HAD TO DO WITH THE BOLTON BOOM PROJECT SO THAT THAT FOR 20 IT WAS IT WAS PART OF ACTUALLY PART OF THE 2025 PROJECTS. BUT SO THAT THE LAST COMMUNICATION THAT WE RECEIVED WAS THAT IT, THAT THE AMOUNT THAT WE HAD REQUESTED WAS, WAS CUT IN THE HOUSE. BUT IT WAS WE DID THEY DID RECOMMEND AND RECOMMEND US TO GET SOMETHING, BUT IT WAS LESS THAN WHAT WE HAD ASKED FOR. AND NOW IT'S IN THE UP TO THE SENATE TO SEE WHAT THEY'RE GOING TO DO, IF THEY'RE GOING TO GOING TO GO ALONG WITH WHAT THE HOUSE RECOMMENDED. AND THEN ANOTHER FUNDING SOURCE WAS THE OUR AND ANOTHER FUNDING SOURCE WAS THE OPERA FUND. IS THIS PART OF THAT PROJECT OF THOSE FUNDS AS WELL? SO AS A PART OF THIS, WE IT'S NOT A PART OF THIS PROJECT, BUT LET ME, LET ME BACK UP SOME OF THE ELECTRICAL WORK THAT IS ASSOCIATED WITH THE DUAL FEED THAT YOU ALL APPROVED AS A PART OF THE OVERALL ARPA APPROPRIATION WILL BE PAID FOR OUT OF THE ARPA FUND BECAUSE, YOU KNOW, SOME OF THE ELECTRICAL WORK THAT WILL HAVE TO BE DONE BY THE CONTRACTOR IS A LITTLE BIT DIFFERENT. IF WE WEREN'T PURSUING THE DUAL FEED MECHANISM. OKAY. VERY GOOD.

THANK YOU AGAIN AND CONGRATULATIONS. WE APPRECIATE YOU COMING BACK. COUNCIL MEMBER PARKER. THANK YOU, MADAM MAYOR. THANK YOU FOR YOUR PRESENTATION. AND THANK YOU FOR COMING BACK WITH THIS BETTER PROJECT OR BETTER RESULT, I SHOULD SAY LIKE THAT. JUST A QUICK QUESTION FOR THE ASSURANCES OF THE PUBLIC WHEN IT COMES TO THIS WORK. NO ONE IS GOING TO SEE ANY DOWN SIDE OF THEIR WATER OR OUTAGES OR ANYTHING LIKE THAT. CORRECT? YEAH. SO THAT'S ACTUALLY A GREAT QUESTION. SO WHENEVER YOU NEGOTIATE THE CONSTRUCTION PROJECTS OF THIS MAGNITUDE, THERE ARE A LOT OF FAILSAFES THAT ARE IMPLEMENTED IN THE CONTRACT AS FAR AS SEQUENCING OF CONSTRUCTION, TIME OF YEAR, CERTAIN THINGS CAN BE DONE. OBVIOUSLY WE CAN'T AVOID OUTAGES FROM, YOU KNOW, SHUTTING DOWN A PUMP STATION BECAUSE WHEN YOU'RE DEALING WITH HIGH VOLTAGE ELECTRICAL, JUST FOR SAFETY REASONS, YOU KNOW, YOU DO HAVE TO SHUT DOWN FOR A PERIOD OF TIME. BUT AS PART OF THIS PRACTICE, WE DO RUN SEVERAL HYDRAULIC MODELS. AND AS SUCH, WE SCHEDULE ACCORDINGLY OF WHAT TIMES OF YEAR WOULD BE BENEFICIAL TO DOING CERTAIN TYPES OF WORK. SO TO ANSWER YOUR QUESTION, THAT'S A LONG WAY OF SAYING NO. THE CUSTOMER WILL NOT EXPERIENCE ANY OUTAGES. AND SHOULD THERE BE ANY, YOU KNOW, BECAUSE, YOU KNOW, LIFE HAPPENS, SHOULD THERE BE ANY, THERE WILL BE SOME KIND OF OUTREACH, SOME KIND OF PLAN PUT IN PLACE IN ORDER TO HELP WITH MAKING CERTAIN PEOPLE KNOW WHAT NEEDS TO HAPPEN FROM THOSE OUTAGES. SO WE DO HAVE, LIKE I SAID, AT BOTH PUMP STATIONS, WE DO HAVE REDUNDANCIES IN PLACE, AND WE DON'T GET RID OF THOSE REDUNDANCIES BEFORE. WE'RE AT A COMFORTABLE POINT THAT WE HAVE

[01:40:02]

THE APPROPRIATE EQUIPMENT INSTALLED. SO WITH THAT BEING SAID, WE WILL NOT EXPERIENCE ANY OUTAGES, I PROMISE. OUTSTANDING. YOU KNOW, YOU KNOW THAT WE OKAY. AND THEN THE LAST QUESTION IS, I KNOW THAT BASED ON THE INFORMATION EARLIER TONIGHT, THE AQUATIC CENTER IS MOVING FORWARD. SO THAT IS A NEW FACILITY, HUGE FACILITY OVER ON EWELL. WILL THE BECAUSE I DON'T KNOW THAT WE HAVE A PUMP STATION ON THAT SIDE OF TOWN ON THE EAST SIDE, AS MANY PEOPLE HAVE TALKED ABOUT. WILL THESE TWO FILTER INTO THAT OR IS THERE GOING TO BE A NEED TO THINK IN TERMS OF SOMETHING LIKE THAT IN THE FUTURE ON THE EAST SIDE TO TAKE CARE OF THOSE TYPES OF FACILITIES? OKAY, SO IN THE INTERIM, YOU MIGHT RECALL SEVERAL MONTHS AGO WE BROUGHT FORTH A PROJECT TO LOOP A WATER LINE FROM ACADEMY WAY TO EWELL ROAD THAT WAS ACTUALLY IN PREPARATION FOR THAT. AS OF RIGHT NOW. WE DID HAVE OUR CONSULTANT, GARVER, SINCE THEY DID DO OUR MASTER PLAN AND THEY WERE FAMILIAR WITH OUR WATER SYSTEM KIND OF GO THROUGH AND MAKE SURE THAT, YOU KNOW, WE HAD THE APPROPRIATE FROM A CAPACITY STANDPOINT TO MEET WATER DEMANDS. OBVIOUSLY, WHEN WE DID THE MASTER PLAN IN 2021 THAT PROJECTED OUT 30 YEARS. SO REALLY SHORT OF 30 YEARS, I THINK, TO ABOUT 2045. SO THERE ARE PLANS WAY OFF IN THE FUTURE FOR ADDITIONAL STORAGE TANKS AND PUMP STATIONS IN THAT GENERAL AREA, BUT NOT AT THIS TIME. AND WE'RE SATISFIED THAT WE CAN SERVE THE CAPACITY. OKAY, I YIELD BACK. THANK YOU, THANK YOU. COUNCIL, IS THERE A MOTION? MADAM? MAY I MAKE A MOTION TO APPROVE? SECOND, IT'S BEEN MOVED BY COUNCIL MEMBER MARKS. SECOND BY MAYOR PRO TEM HUGHES TO APPROVE AS PRESENTED. COUNCIL WILL GO AND DO A HAND VOTE. I'LL START THIS TIME TO MY LEFT, COUNCILMEMBER PARKER. YES? COUNCIL MEMBER. RAPHAEL. YES. COUNCILMAN. BYRD. YES. MAYOR. PROCTOR. YES. DOCTOR. MARKS.

YES. COUNCIL MEMBER. CHISHOLM. YES. AND MAYOR PRO TEM. HUGHES. YES. THAT MOTION PASSES

[4. Consider approval of a three-year contract for Office 365 and hosted Exchange from SHI in the amount of $429,882; the one-time purchase of 175 perpetual Office licenses for $76,392; and Professional Services from Global Asset for two years in the amount of $83,519 (including training), for a total of $589,793]

UNANIMOUSLY. THANK YOU. COUNCIL, LET'S GO TO OUR NEXT ITEM ON OUR NEXT ITEM ON THE AGENDA, WHICH IS CONSIDER THE APPROVAL OF A THREE YEAR CONTRACT FOR OFFICE 365 AND HOSTED EXCHANGE FROM S H I IN THE AMOUNT OF $429,882 IN THE ONE TIME PURCHASE OF 175 PERPETUAL OFFICE LICENSES FOR $76,392, AND PROFESSIONAL SERVICES FROM GLOBAL ASSET FOR TWO YEARS IN THE AMOUNT OF $83,519, INCLUDING TRAINING, FOR A TOTAL OF $589,000, 70 $589,793. MAKING THE PRESENTATION IS MR. TOM FIEGERT, OUR IT DIRECTOR. GOOD EVENING, MR. FEIGER. GOOD EVENING. GOOD EVENING, MAYOR AND COUNCIL. WE'VE ALREADY KIND OF BEEN THROUGH THIS A COUPLE TIMES. I THINK WE WENT THROUGH IT AT BUDGET TIME AND WE'VE GONE THROUGH IT SINCE. I DON'T REMEMBER IF IT WAS LATE LAST YEAR OR EARLY THIS. SO I'VE GOT A HALF A DOZEN SLIDES. WE'LL RUN THROUGH THEM REAL QUICK. THE ELECTRONIC EQUIPMENT REPLACEMENT FUND IS WHAT WE'LL BE USING TO PAY FOR THIS. MONEY'S ALREADY BEEN SET ASIDE FOR THIS PURPOSE, SO I DON'T NEED TO DO BONDS OR ANYTHING. WELL, THANK YOU FOR BEING EVER SO KIND, MR. FEIGEN. NEXT SLIDE PLEASE. OUR. THESE PRODUCTS ARE DUE TO EXPIRE AT THE END OF THIS YEAR ALREADY. SO THEY'LL NEED REPLACEMENT REGARDLESS JUST TO STAY ON TOP OF THE. WARRANTIES. AND OUR PATCHING AND SECURITY. OKAY. SO THE ON PREMISE ENVIRONMENT THAT WE'RE RUNNING RIGHT NOW. ARE ACTUALLY IS THIS IS THE PROPOSED. WELL, ONE OF THE OPTIONS WE HAVE IS TO HAVE THE PERPETUAL LICENSING WHERE WE BUY AND HOUSE EVERYTHING IN HOUSE. THAT IN THAT INCLUDES MANAGING OUR EMAIL SERVERS, OUR BACKUPS.

MAKING SURE THAT WE HAVE STAFF ON HAND ALL THE TIME TO DEAL WITH THAT. LET'S SEE. IT GOES FOR THAT. THE OTHER OPTION THAT THE THAT WE PREFER IS THE MICROSOFT OFFICE 365, WHICH IS A SOFTWARE AS A SERVICE MODEL. IT REQUIRES ANNUAL PAYMENTS AND A PER UNIT PER USER LICENSES.

OFFICE 365 SUBSCRIPTIONS KIND OF VARY. THEY'VE GOT DIFFERENT BUCKETS OR DIFFERENT GROUPS THAT

[01:45:08]

WE CAN SET UP. THOSE LICENSING GROUPS IN. AND WE GET ACCESS TO THE 365 APPLICATIONS, WHICH IS ONEDRIVE, SHAREPOINT, TEAM TEAMS, THOSE PRODUCTS THAT IS KIND OF GONE MAINSTREAM IN THE IN THE IT INDUSTRY. LET'S SEE. WE WILL ALSO NEED A THIRD PARTY CLOUD TO CLOUD BACKUP SOLUTION, WHICH WE HAVE IDENTIFIED AND PRICED AND COSTED INTO THIS PRICE INTO THIS PRICING MODEL.

AND WE ANTICIPATE THE DEPLOYMENT WILL BE 6 TO 9 WEEKS. AND DURING THAT PERIOD THERE MAY BE SOME SPORADIC OUTAGES WITH MICROSOFT OFFICE AND THE LIKE. ONCE MIGRATION IS COMPLETE, THE CITY WILL BE JOINED WITH MICROSOFT FOR. A SUBSCRIPTION FEE. THESE ARE KIND OF THE NUMBERS. WELL, THEY'RE NOT KIND OF. THEY ARE THE NUMBERS. FOR THREE YEARS, WE'RE ANTICIPATING A $429,882 TAB. AND THESE ARE GOING TO BE IN INSTALLMENTS OF 143,294. AND THIS IS IN CONJUNCTION WITH OUR HOST WHO HELPED US NEGOTIATE THE PRICE. WE DO HAVE SOME PERPETUAL LICENSES THAT WE'RE PURCHASING, AND SOME EXAMPLES OF WHY WE WOULD USE THOSE ARE FOR OUR MOBILE DEVICES, FOR CARS, FOR POLICE CARS, FOR FIRE DEPARTMENT USE. THAT KIND OF STUFF. AND THEN. IN NEXT YEAR WE WILL START THE DEPLOYMENT OF THE SHAREPOINT AND TEAMS, ETC, THE ANCILLARY STUFF. SO THE FIRST THING, THE FIRST THING WE WANT TO DO, JUST IN TERMS OF A PLAN IS GET EXCHANGE, WHICH IS OUTLOOK AND OFFICE DEPLOYED AND GETTING OUR USERS ON AND STABILIZE USING THOSE PRODUCTS. THEN NEXT YEAR WE'LL START TO GET INTO MORE OF THE SHAREPOINT KINDS OF SOLUTIONS AND TEAMS, ETC. THAT, THAT THAT LEVERAGE THAT PART, THE PARTNERSHIPS. LET'S AND THEN WE'VE GOT TRAINING ON THE COLLABORATION TOOLS, WHICH WE HAVE SET AT 9690. SO THE TOTAL COMES TO 589,000 OVER THREE YEARS. SUBSEQUENT YEARS WILL ONLY HAVE A SUBSCRIPTION FEE. SO WE'RE NOT GOING TO HAVE TO PAY TO MIGRATE AGAIN AND AGAIN. THE FUNDS ARE AVAILABLE IN THE ELECTRONIC EQUIPMENT REPLACEMENT PROGRAM. NEXT SLIDE ON HERE SHOWS SOME OTHER CITIES IN OUR AREA THAT ARE RUNNING, AND A SENSE OF WHAT THEIR AVERAGE COST IS PER YEAR. AND THAT ALSO HAS A NUMBER OF USERS ON THERE. SO IT IS STAFF'S RECOMMENDATION THAT WE APPROVE THE THREE YEAR CONTRACT FOR OFFICE 365 AND HOSTED EXCHANGE THROUGH S.H.I, AND THE AMOUNT OF 429,429 882. AND THE ONE TIME PURCHASE OF 175 PERPETUAL LICENSES AT THE COST OF 700, OR, I MEAN 76,000. 392 AND PROFESSIONAL SERVICES WITH GLOBAL ASSET FOR TWO YEARS IN THE AMOUNT OF 83,005 19. THESE ARE ALL GOING TO BE EXECUTED UNDER GOVERNMENT CONTRACTS. SO WE DID NOT HAVE TO DO AN RFP AND ALL THAT KIND OF STUFF TO GET THESE NUMBERS AND PRESENT TO YOU. SO THAT'S WHAT I GOT. ANY QUESTIONS? THANK YOU, MR. SPEAKER, FOR THAT PRESENTATION. COUNCIL, IS THERE A MOTION? MADAM MAYOR, I MAKE A MOTION THAT WE APPROVE AS WRITTEN. SECOND, IT'S BEEN MOVED BY COUNCILMEMBER PARKER. SECOND, BY COUNCIL MEMBER CHISHOLM COUNCIL. ARE THERE ANY QUESTIONS? YES. COUNCIL MEMBER PARKER. ALL

[01:50:05]

RIGHT. GOOD EVENING, MR. TOM. THANK YOU SO MUCH FOR YOUR PRESENTATION. YOU KNOW, THIS IS MY JAM. SO I TRULY AM HAPPY TO SEE THIS MOVING FORWARD. I DO HAVE A QUESTION. YES, I DO HAVE A QUESTION IN TERMS OF THE PRICING, YOU SAID THAT THE PROFESSIONAL SERVICES WOULD BE 83,000 FOR A TWO YEAR TERM USUALLY, AND IT'S USUALLY MORE, BUT I'M ASKING, DOES THAT INCLUDE A PROJECT MANAGER TO PUT THIS IN PLACE, OR IS THAT ALREADY IN HOUSE? THE PROJECT MANAGEMENT SERVICES WILL BE THROUGH OUR VENDOR, AND 3000, I'M SORRY, 83,000. LET ME GO BACK HERE. SO WE'VE GOT THE INTEGRATION TRAINING COLLABORATION. THE IT'S GOING TO BE INCLUDED IN THE 143. AND THEN THE. THE SUPPORT IS 37 FOUR. THAT'S MIGRATION SUPPORT. SO YES, THE PROJECT WILL DO MOST OF THE HEAVY LIFTING INTERNALLY IN THE IT DEPARTMENT. BUT WE DO HAVE A FIRM THAT'S GOING TO HELP US COORDINATE AND EXECUTE THE STEPS AS THEY'VE DONE ON MANY OTHER OCCASIONS. DOES THAT ANSWER YOUR QUESTION? IT DOES. HOWEVER, THE REASON I'M ASKING THAT QUESTION, IN TERMS OF THE PRICING, YOU SAID THAT THERE WAS A OPTION FOR FIVE YEAR TERM.

WOULD THAT HAVE NETTED YOU MORE THAN THE THREE YEAR TERM? IT WOULD HAVE COST MORE. OF COURSE IT WOULD COST MORE, BUT I'M SAYING WOULD HAVE HAD WOULD YOU STILL HAVE GOTTEN IT? MAY HAVE SAVED SLIGHTLY, BUT MICROSOFT DOESN'T LIKE DOING FIVE YEARS, SO WE WOULDN'T HAVE SAVED WHAT YOU WOULD THINK WE WOULD BY JUST EXTRAPOLATING THE THREE YEARS OVER FIVE. OKAY. AND SO WITH THIS PARTICULAR BID, THE WAY IT'S WRITTEN, I'M STILL KIND OF SKEPTICAL THAT A PROJECT MANAGER WOULD COST A LITTLE BIT MORE IN ORDER TO PUT THIS IN PLACE. THAT'S WHY I'M ASKING THAT QUESTION. YOU SAID THAT THERE WAS MONIES ALREADY SET ASIDE FOR THIS AT THIS PRICE, OR WILL YOU HAVE MORE JUST IN CASE SOMETHING? BECAUSE YOU KNOW, WHEN IT HAPPENS, MORE SOMETIMES HAPPENS. CONTINGENCY. YES. YES, WE DO HAVE A CONTINGENCY. IS IT MORE MONEY? SO KAREN, CAN YOU COME TO THE MIC PLEASE. THERE IS SOME MORE FUND BALANCE IN THAT ACCOUNT BEYOND THIS AMOUNT.

OKAY. SO OKAY, THE ONLY REASON I ASKED THAT QUESTION WAS BECAUSE ONCE YOU GET THIS UNDERWAY, YOU WOULD HATE TO HAVE TO STOP. EXACTLY. AND THAT WOULD NOT BE A GOOD IDEA. AND SO THE LAST THING I HAVE ON THE ON MY QUESTIONS IS THE TIMELINE. WHEN YOU SAID IN TERMS OF TONIGHT, IS IT APPROVED, IF IT GETS APPROVED, IF IT DOESN'T, WHAT HAPPENS AFTER TONIGHT? IF IT GETS APPROVED TONIGHT, WE WILL MOVE FORWARD WITH THE CONTRACT WITH FOR THE LICENSING AND THE GLOBAL ASSET FOR THE SUPPORT. OKAY. AND SO THE PEOPLE THAT ARE EMPLOYED FOR THE ACTUAL MICROSOFT OFFICE UNDERSTAND THAT WE USE TITLE TECHNOLOGIES AND THAT THE TWO SHOULD MARRY. YES, MA'AM. OKAY.

THANK YOU I YIELD BACK. THANK YOU COUNCILMEMBER. YES. THANK YOU. WOW. I'VE BEEN LOOKING FORWARD TO THIS SINCE I DON'T KNOW, SINCE WHEN? LIKE WHAT? WE HAVE TO USE THIS. I JUST DON'T KNOW. BUT OKAY, SO HERE WE GO. MY QUESTION IS RELATED TO THE 175 PERPETUAL LICENSES. THAT PIECE WAS THAT WHEN YOU WERE EXPLAINING THE PURCHASING SOMETHING FOR LIKE POLICE, THE PERIPHERALS, THE DIFFERENT THINGS, WAS IT RELATED TO THAT OR COULD YOU EXPLAIN THAT TO ME ONE MORE TIME? THE 175 PERPETUAL LICENSE. SO YES. SO BASICALLY WHAT THAT REPRESENTS IS A LOCAL INSTALL OF OFFICE. SO IN SOME CASES, LIKE WITH SHARED COMPUTERS AND WE'VE GOT, YOU KNOW, WE'VE GOT 175 OF THEM KAREN AND JARED AND THEIR TEAMS WENT THROUGH A FAIRLY EXHAUSTIVE ANALYSIS OF THAT TO ARRIVE AT THESE NUMBERS. SO THAT INCLUDES THE MCC OR THE MOBILE DEVICES FOR POLICE AND FIRE, THE COMPUTER LAB, THE LIBRARY, THEIR, THEIR PUBLIC FACING COMPUTERS THAT THEY LOANED TO RESIDENTS, THOSE KINDS OF THINGS. WE'RE NOT GOING TO HAVE THEM ON OUR SAS ENVIRONMENT. THEY'LL HAVE A LOCAL INSTALL OF OFFICE. AND THE REASONING BEHIND THAT IS SO THAT WE'RE NOT PAYING ANNUAL LICENSING FEES, IT WAS TO BRING DOWN THE ANNUAL COST, RIGHT, SO THAT WE'RE NOT PAYING ANNUAL LICENSING FEES FOR PUBLIC COMPUTERS AND COMPUTERS THAT DON'T HAVE ASSIGNED USERS OR HAVE SHARED COMPUTERS. IT WAS A COST SAVING MEASURE. OKAY, OKAY,

[01:55:06]

OKAY, OKAY. AND WHAT ABOUT SECURITY OR SECURITY? IS THAT IS THERE ANY ISSUES RELATED TO THAT WITH THESE OKAY. NO OKAY. ALL RIGHT. SO BASICALLY OUR PUBLIC FACING THINGS, EVERYTHING THAT HAS TO BE SHARED WE'RE GOING TO BE WORKING ON I'M SORRY I DIDN'T MEAN TO INTERRUPT OKAY. AND I GUESS IT KIND OF GETS TO OUR EQUIPMENT. YOU TALKED OUR EQUIPMENT REPLACEMENT, YOU KNOW, THAT KIND OF THING. SO, YOU KNOW, I GUESS, I GUESS I'M WONDERING, LIKE, WHAT'S, LIKE, THE LONG TERM PLAN. SO WHAT I HEAR YOU SAYING IS WE DON'T WANT TO PAY FOR SAS ENVIRONMENT FOR THESE THINGS, FOR THESE TYPE, OF THESE TYPE OF DEVICES. HOWEVER, JUST KIND OF THINKING FOR THE FUTURE, IS THIS SOMETHING THAT WILL BE REEVALUATED OR I GUESS I'M JUST A LITTLE BIT LOST WITH THE 175, AND MAYBE I'M GETTING STUCK ON THE NUMBER OF 175 AND LIKE, WHAT DOES IT LOOK LIKE WHEN WE REDUCE, OR WHAT DOES IT LOOK LIKE WHEN WE ADD MORE DEVICES? YEAH, THAT'S IT A LOT.

I'M SORRY. WELL, OBVIOUSLY THE COST WILL GO UP WITH MORE DEVICES THAT THAT WE DON'T ANTICIPATE CHANGING. HOWEVER, EACH LICENSE ACCOUNTS FOR UP TO FIVE USER INSTANCES. SO FOR EXAMPLE, NICOLE RAFAEL CAN HAVE IT ON HER PHONE, ON HER IPAD, ON A LAPTOP. AS LONG AS YOU'RE EMPLOYED BY THE CITY THAT WILL BE AVAILABLE TO YOU. AND UP TO FIVE OF THOSE DEVICES. OKAY. IT WAS KIND OF IT'S WE FELT LIKE IT WAS OVERKILL FOR THE PUBLIC COMPUTERS TO PAY AN ANNUAL FEE FOR OF A COUPLE HUNDRED DOLLARS. THAT'S NOT NECESSARY. AND THEY DON'T EVEN NEED A MAILBOX. SO WHEN, WHEN THAT ANNUAL FEE THAT YOU'RE PAYING FOR THE HOSTED EXCHANGE INCLUDES THE MAILBOX, AND YOU DON'T HAVE A MAILBOX FOR PUBLIC COMPUTERS AND THOSE SORTS OF THINGS. OKAY. SO IT'S MORE SO LIKE OTHER LIKE WORD EXCEL IS IT. THAT'S EXACTLY RIGHT. OKAY. GOTCHA. AND THEN WHEN IT COMES TO THE PREMIUM COLLECTIVE TOOLS AND INTEGRATING THAT IN THE SECOND YEAR, IS THERE A REASON WHY WE'RE DOING IT IN THE SECOND YEAR VERSUS, YOU KNOW, MAYBE IN THE HALF YEAR? I JUST WANTED TO UNDERSTAND LIKE THE RATIONALE THERE. AND THEN WHAT'S THE PLAN FOR TRAINING? THE BIGGEST SINGLE REASON IS WE'RE A SMALL DEPARTMENT AND WE CAN ONLY BITE OFF SO MUCH AT, YOU KNOW, AT A TIME. OKAY. IN TERMS OF TRAINING. YES. GLOBAL RELAY HAS GLOBAL RELAY ASSET. GLOBAL ASSET HAS INCLUDED THAT TRAINING IN THEIR QUOTATIONS FOR SERVE FOR AND IS THAT IN-PERSON TRAINING IS THAT WEBINAR TRAINING. AND I'M A LITTLE CONFUSED ON LIKE IT'LL PROBABLY AND WHAT THAT MEANS BECAUSE THERE'S SO MUCH OUT THERE YOU KNOW, VIRTUALLY IN TERMS OF WEBINARS THAT MICROSOFT OFFERS. RIGHT. THERE ARE LOCAL VENDORS. SO I WOULD ANTICIPATE BOTH THEY'LL COME IN AND DO SOME TRAINING WITH OUR ASSOCIATES HERE LOCALLY, AND THEN WE'LL RECORD IT, PRESUMABLY. AND EITHER PROVIDE THAT TO OUR. SATELLITE FOLKS OR. HOLD A ZOOM MEETING FOR TRAINING FOR. OKAY, OKAY. I GUESS I WAS JUST A LITTLE BIT LOST JUST ON THE TRAINING PIECE WHEN THERE'S SO MUCH THAT'S, YOU KNOW, THAT MICROSOFT PROVIDES WITH ALL THERE. RIGHT? AND THAT'S ONE OF THE REASONS WHY WE WANTED TO ADD THAT INTO OUR LITTLE MIXTURE WAS TO MAKE SURE THAT WE HAD SOME DEDICATED TRAINING THAT WAS JUST GOING TO BE ON THIS JUST FOR OUR ASSOCIATES, BECAUSE THERE ARE SOME NUANCES BETWEEN THE DESKTOP VERSION OF OFFICE AND THE CLOUD VERSION. JUST IN TERMS OF SOME, JUST SOME OF THE SMALLER STUFF WITH MANIPULATING EXCEL, AND ESPECIALLY WHEN YOU GET INTO HIGHER LEVEL PIVOT TABLES AND STUFF LIKE THAT, IT'S JUST THE WAY YOU LOOK AT IT. IT'S DIFFERENT. OKAY, OKAY, I GUESS I'M JUST HAVING A HARD TIME WITH PAYING FOR TRAINING WHEN THE, YOU KNOW, THAT INFORMATION STILL IS ACCESSIBLE VIRTUALLY AND SO WELL, AND WE PLAN TO LEVERAGE THAT TO, I MEAN, FOR FREE. RIGHT, RIGHT. AND AGAIN, THAT IS GOING TO BE PART OF OUR EQUATION FOR SURE. BUT THIS IS JUST THE INITIAL THRUST TO GET PEOPLE OVER THE OVER THE HUMP OF ACCEPTING THE NEW TECHNOLOGY. A LOT OF FOLKS ARE THERE'S KIND OF A WEIRD DIFFERENCE FOR EVERYBODY EITHER LOVES 365 AND THEY WANT IT. AND THEY'VE BEEN BEGGING US FOR IT FOR, WELL, I'VE BEEN HERE FOR NINE YEARS. SO LET ME ASK, OR COULD WE REALIZE THE SAVINGS JUST IN CASE WE DON'T NEED THAT

[02:00:02]

MUCH TRAINING? MAYBE THAT'S MAYBE THAT'S A BETTER QUESTION. AND THAT'S ALL I HAVE. THANK.

THE TRAINING ASPECT OF IT IS A FAIRLY LIGHT RELATIVE TO THE OVERALL KINDS OF NUMBERS WE'RE TALKING ABOUT HERE. WE'RE TALKING ABOUT WHAT, TEN GRAND OR 12 GRAND FOR TRAINING. SO WE'RE NOT OVER. IN THE BIG PICTURE, THIS IS A FAIRLY SMALL AMOUNT. AND THEY'RE HELPING US BY HELPING US TRAIN OUR ASSOCIATES. THEY'RE REDUCING THEIR OWN. WEIGHT OF THE SUPPORT STUFF THAT WE ESCALATE TO THEM. RIGHT. SO AS AS WE MATURE AS AN ORGANIZATION, WE'LL START LEVERAGING MORE AND MORE OF THAT OF THAT FREE STUFF THROUGH LINKEDIN AND THROUGH SOME OF THE OTHER TOOLS THAT ARE AVAILABLE, THE LINKEDIN LEARNING OR WHATEVER. AND I'M SURE WE WILL DO THAT. AND MICROSOFT PROVIDES A FAIRLY ROBUST LITTLE CATALOG, I THINK, BUT THERE WILL BE ALWAYS A NEED FOR US TO SEND SOMEBODY OFF TO A CLASS OR WHATEVER FOR THIS OR THAT. THIS IS, AGAIN, JUST THAT INITIAL THRUST TO GET 450 PEOPLE UP AND GOING AS QUICKLY AS POSSIBLE.

OKAY. THANK YOU. COUNCIL, WE HAVE A MOTION ON THE FLOOR. MADAM MAYOR, BEFORE YOU GO ON, I JUST WANT I GUESS I'LL TURN MATHEMATICIAN. WE OFFER DOLLAR. IN OUR CALCULATIONS. OKAY, I YIELD BACK. THANK YOU. WE HAVE A MOTION ON THE FLOOR. COUNCIL. WE STILL DON'T HAVE OUR VOTING MACHINE UP TONIGHT. AND SO WE HAVE ONE MORE ITEM. I'M GOING TO START THIS TIME TO MY RIGHT, MAYOR PRO TEM HUGHES. I'M SORRY. POINT OF INFORMATION. I'M SORRY. DID I NEED TO REVISE WHAT I SAID? BECAUSE THERE'S TWO OPTIONS. DID I NEED TO SAY WHICH THEY MADE A RECOMMENDATION.

CORRECT. WHICH WHICH ONE? THEY WHICH OPTION? THEY DIDN'T SAY WHICH OPTION. I THOUGHT IT WAS OPTION NO. THE RECOMMENDATION WE RECOMMENDED FOR THAT THEY RECOMMEND THE SAS MODEL FOR THE SOFTWARE AS A SERVICE MODEL. OKAY. THEN I'LL KEEP IT AS IS. THANK YOU, MAYOR PRO TEM HUGHES.

SO MADAM, MADAM MAYOR, SO WITH THE WITH THE CALCULATIONS, WE NEED TO MAKE SURE THAT WE ARE APPROVING THE RIGHT AMOUNT AS IT IF WE SAY AS APPROVED, DOES THAT MAKE SENSE? WHERE ARE YOU SEEING THE DOLLAR DISCREPANCY? 589589794 SHOULD BE 93. YES. YOU HAVE THE CORRECT. IT'S CORRECT ON THE AGENDA. IT'S JUST IN THE PRESENTATION. IT'S I JUST WANT TO MAKE SURE THAT WE'RE APPROVING THE RIGHT AMOUNT. SO WE WILL BE APPROVING WHAT'S IN THE AGENDA, NOT THE PRESENTATION. THANK YOU. OKAY. WE HAVE MAYOR PRO TEM HUGHES. YES. COUNCIL MEMBER CHISHOLM.

YES. DOCTOR. MARX. YES. MAYOR. PROCTOR. YES. COUNCILMAN. BURKE. YES. COUNCIL MEMBER. RAFAEL.

[5. Consider authorizing the City Manager to negotiate and enter into a Chapter 380 Economic Development Agreement with Allied Stone Inc., for an amount not to exceed $600,000 to facilitate the expansion of their manufacturing facility and increased production capacity]

YES. AND COUNCIL MEMBER. PARKER. YES. THAT MOTION PASSES UNANIMOUSLY. COUNCIL. WE ARE AT OUR FINAL AGENDA ITEM. AND THAT IS, CONSIDER AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND ENTER INTO A CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENT WITH ALLIED STONE, INC. FOR AN AMOUNT NOT TO EXCEED $600,000 TO FACILITATE THE EXPANSION OF THEIR MANUFACTURING FACILITY AND INCREASE PRODUCTION CAPACITY. MAKING THAT PRESENTATION, THAT FINAL PRESENTATION FOR THE NIGHT IS MR. ANTOINE LONG, OUR ECONOMIC DEVELOPMENT MANAGER. THANK YOU. GOOD EVENING. MR. YES. GOOD EVENING MAYOR. GOOD EVENING COUNCIL. THANK YOU AGAIN FOR THIS TIME THIS EVENING. I WANT TO TOUCH ON A PROJECT THAT IS GROWING RIGHT HERE IN DESOTO, TEXAS, AND AN INCENTIVE PROPOSAL THAT OUR BOARD APPROVED BACK AT OUR JANUARY MEETING. WE'LL GET THE PRESENTATION UP AND GO FROM THERE. THANK YOU. SO, ALLIED INTERIOR SOLUTIONS, ALSO KNOWN AS SQUARE CABINETRY, BEGAN MANUFACTURING THEIR STATE OF THE ART FACILITY HERE IN DESOTO BACK IN 2016. THEY'VE SINCE EXPANDED TWICE WITHIN THAT DECADE. ALLIED INTERIOR SOLUTIONS IS CONSIDERING ADDITIONAL INVESTMENT OF EQUIPMENT AND EMPLOYMENT TO INCREASE THEIR PRODUCTION CAPACITY BY 100%.

THIS WILL BE THE THIRD EXPANSION HERE IN DESOTO WITHIN THIS LAST DECADE. MORE BACKGROUND IN FEBRUARY OF 24, ALLIED INTERIOR CONTACTED EDC WITH THE PLAN TO EXPAND THEIR PRODUCTION DUE TO INCREASED DEMAND AND ANTICIPATED GROWTH IN NEW MARKETS. A LOT OF GROWTH IN TEXAS, OF COURSE, TOTAL INVESTMENT FOR THIS PARTICULAR EXPANSION IS $22 MILLION. THE INVESTMENT WILL ALLOW FOR 100% INCREASE IN PRODUCTION CAPACITY FOR THE FACILITY. THE GREAT THING ABOUT THIS PROJECT, WE TALK OFTEN ABOUT BUSINESS RETENTION AND EXPANSION. THIS IS VERY MUCH SO.

A GREAT EXAMPLE OF THAT. A COMPANY GROWING RIGHT HERE IN DESOTO AND GROWING, LIKE I SAID, THREE TIMES IN THE LAST DECADE, THIS PARTICULAR EXPANSION WILL INCLUDE EQUIPMENT FOR LARGE AND HIGHLY SOPHISTICATED SAWS, CONVEYORS, SANDERS, MACHINES, FINISHING, FINISHING PANELS OF CABINETS, DRILL PRESSES, HANGING PAINT AND STAIN LINES, CURING OVENS, UPGRADED ELECTRICAL CIRCUITS, AS WELL AS ADDITIONAL EXECUTIVE AND BACK OFFICE OPERATIONS. I WANT TO EMPHASIZE THIS ONE PARTICULARLY BECAUSE THIS IS AN ADVANCED MANUFACTURING FACILITY, VERY MUCH SO BLUE COLLAR WITH THOSE TYPE OF ROLES AND OPERATIONS. WITH THIS PARTICULAR EXPANSION,

[02:05:04]

THEY ARE LOOKING TO ADD MORE OF THEIR WHITE COLLAR JOBS IN ADMIN, MARKETING, I.T, FINANCE AND HR AS LISTED HERE. SO VERY EXCITED THAT THEY'RE LOOKING TO BRING SOME OF THAT BACK OFFICE OPPORTUNITIES HERE IN DESOTO. SOME BETTER JOBS ON THE WAY AS WELL. THE PROPOSAL THAT WE REVIEWED AND CAME UP WITH IS A SECTION 380 AGREEMENT, A SECTION THREE, A DEVELOPMENT AGREEMENT WITH THE CITY OF DESOTO, TWO PARTS, 60% REBATE OF BPP BUSINESS PERSONAL PROPERTY TO THE TUNE OF ABOUT 60% FOR SIX YEARS. THAT NUMBER EQUATED TO ALMOST $387,000, AND THEN THE 50% REBATE OF THOSE INVENTORY TAXES, AGAIN THE SAME SIX YEAR PERIOD, UP TO 50% ON THIS ONE.

AND THAT'S TOTALING CLOSE TO $230,000. STAFF RECOMMENDATION FROM OUR BOARD BACK IN JANUARY IS FOR APPROVAL, AND ALSO AUTHORIZE THE CITY MANAGER TO ENTER SECTION 380 AGREEMENT IN THE AMOUNT NOT TO EXCEED 600,000, WITH APPROPRIATE COMPLIANCE REPORTING AND CLAWBACK PROVISIONS FOR NONPERFORMANCE. I BELIEVE THAT IS IT, AND I'LL OPEN UP FOR QUESTIONS. JUST WANT TO SHOUT OUT MATT AND THE CEO THERE OF ALLIED STONE, TALKING AT ONE OF OUR HR ROUNDTABLES THAT WE HOST ON A QUARTERLY BASIS. NEXT HR ROUNDTABLE COMING UP ON THURSDAY. HOPEFULLY WE HAVE SOME MORE OF THESE OPPORTUNITIES TO SUPPORT SOME OF THESE GROWING BUSINESSES, BUT I WILL LEAVE THAT OPEN TO QUESTIONS. THANK YOU. THANK YOU, MR. LONG.

COUNCIL, IS THERE A MOTION? MADAM MAYOR, I MOVE THAT WE APPROVE AS PRESENTED. SECOND, IT'S BEEN MOVED BY COUNCILMAN BYRD, SECOND BY MAYOR PRO TEM HUGHES COUNCIL. ARE THERE ANY QUESTIONS FOR MR. LONG? YES. COUNCIL MEMBER PARKER THANK YOU, MADAM MAYOR. THANK YOU, MR. LONG. I LOVE THAT THIS IS AN OPPORTUNITY THAT'S COMING TO DESOTO. AS YOU KNOW THAT I ASKED A GAZILLION QUESTIONS AND I DID GET MY ANSWERS VIA EMAIL. HOWEVER, I DID WANT TO GO BACK TO AN ITEM THAT IS IN THE EMAIL WHERE I TALKED ABOUT AN APPRENTICESHIP, BECAUSE THESE ARE DOLLARS COMING OUT OF THE TAXPAYERS, YOU KNOW, COFFERS. AT THIS PARTICULAR POINT IN TIME.

IT WOULD BE AWESOME IF THIS BUSINESS, AS WELL AS ANY OTHER BUSINESS THAT COMES TO DESOTO AND USES OUR FUNDS, WOULD BE ABLE TO HAVE A WAY TO HELP SOME OF OUR KIDS, OUR YOUTH THAT ARE COMING UP, EVEN OUR ADULTS AT THIS POINT, TO BE ABLE TO UTILIZE SOME OF THOSE POSITIONS THAT ARE ABOUT TO COME OPEN. I KNOW THAT WE DON'T NECESSARILY HAVE EVERY PIECE OF THAT SKILL SET, BUT I'M SURE WE HAVE SOME OF THOSE. AND BASED ON THE ANSWER, THERE WAS SOME DISCUSSION ABOUT A TALK WITH THE SCHOOL DISTRICT. WITH DALLAS COLLEGE BEING ABLE TO HELP SOME OF THE DESOTO RESIDENTS, HOW, HOW AND I DON'T KNOW WHAT WE CAN DO IF THAT IS EVEN SOMETHING THAT WE CAN ASK THAT BE UTILIZED A LITTLE BIT. I MEAN, I GUESS NOT REALLY RESTRICTED OR, YOU KNOW, I JUST WOULD LIKE TO KNOW, IS THERE ANYTHING THAT THIS COUNCIL COULD HELP KIND OF USHER THAT ALONG TO HELP OUR CITIZENS BE THE ONES WHO BE ABLE TO UTILIZE THAT FIRST, NOT ONLY, BUT FIRST? YEAH, THERE'S A LOT THAT DOESN'T HAPPEN HERE IN DESOTO. YEAH, I APPRECIATE THAT QUESTION. WORKFORCE DEVELOPMENT IS CLEARLY A KEY PILLAR OF ECONOMIC DEVELOPMENT. AND BEING ABLE TO SUPPORT OR CONNECT WITH OUR SCHOOL DISTRICT IS SOMETHING THAT WE'VE BEEN ABLE TO DO.

ACTUALLY, WITH ALLIED STONE. NOW, THEY HAVEN'T CREATED A PROGRAM JUST YET. I THINK THOSE CONVERSATIONS WITH THE TEXAS WORKFORCE COMMISSION, TEXAS STATE TECHNICAL COLLEGE AND ALSO DALLAS COLLEGE ARE REALLY CURATING THAT WITH THE ACTUAL FACILITY HERE IN DESOTO. WHAT DOES THAT ACTUALLY LOOK LIKE? THIS COMPANY, THEY ALSO HAVE SOME OPERATIONS IN OKLAHOMA AND A FEW OTHER STATES, BUT DESOTO SPECIFIC, THOSE CONVERSATIONS ARE ONGOING. AND I WILL SAY, I THINK AS WE STARTED THIS CONVERSATION OR PICKED UP ON THIS CONVERSATION RIGHT BEFORE THE HOLIDAYS, THAT WAS A KEY PIECE FROM THEM. SO IT'S NOT IT'S NOT ESTABLISHED JUST YET, BUT JUST YOUR CONTINUED SUPPORT AROUND WORKFORCE DEVELOPMENT EFFORTS. I IMAGINE SOMETHING WILL RISE UP FOR YOU. OKAY. AND IT WOULD BE GREAT IF THEY ALSO TALKED WITH THE SCHOOL DISTRICT.

YES, BECAUSE YOU DO HAVE SOME OF THE ITEMS THAT THE KIDS, BECAUSE WE ALSO HAVE ANOTHER SCHOOL THAT'S COMING RIGHT OFF IN THAT VERY SAME GENERAL VICINITY. IF THERE ARE SOME KIDS IN OUT OF THAT OR YOUTH OUT OF THAT, THAT CAN BE USHERED INTO SOME OF THESE JOBS. I'M JUST REALLY ASKING, IS THERE IS THERE SOMETHING THAT CAN COME BACK TO THE COUNCIL AT SOME POINT OR AN UPDATE OR SOMETHING LIKE THAT? I JUST WOULD LIKE TO KNOW. I'M NOT CERTAIN. I THINK I WOULD LIKEN IT TO MAYBE THE ESPORTS PROGRAM OR, YOU KNOW, THINGS THAT WE'RE DOING IN THE BIOTECH SPACE. IF THERE IS AN OPPORTUNITY TO INTRODUCE THAT TO THE CTE PROGRAM THERE, DESOTO WILL EXPLORE THAT. BUT IT HASN'T BEEN ESTABLISHED YET. OKAY. THANK YOU. YES, MA'AM. I YIELD BACK COUNCIL MEMBER RAFAEL. SURE THING. THANK YOU FOR THE PRESENTATION AND BRINGING THIS FORWARD. HOW CONFIDENT ARE WE ABOUT THEIR SALES PROJECTIONS OVER THE NEXT TEN YEARS AND THE CONTINGENCY PLANS IF THOSE PROJECTIONS ARE NOT MET? AND THEN CAN YOU TALK ABOUT LIKE, WHAT ARE THE SPECIFICS IN THE CLAWBACK. YEAH, I THINK THE CLEARLY THE MAIN, MAIN, ONE OF THE MAIN CALLBACKS IS THE INVESTMENT DOLLARS, WHAT THEY'RE PLANNING TO DO OVER THE NEXT, I THINK, SIX YEARS WITH THIS AGREEMENT AND ALSO THE HIRING NUMBERS. SO MAKING SURE THEY HIT THOSE NUMBERS AS WELL. AGAIN, THOSE COMPLIANCE THINGS THAT WE'LL HAVE IN PLACE TO MAKE SURE THAT THEY'RE MEETING THAT. AND WE YOU KNOW, WE'RE ACTUALLY PAYING THOSE INCENTIVES OUT. YOU MENTIONED ABOUT KIND OF THEIR GROWTH IN REGARDS TO SALES. THEY'RE IN THE HOUSING INDUSTRY,

[02:10:02]