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WHAT IS GETTING A GOOD ENTERTAINER.
[I. COMMENCEMENT]
MOSES IS HERE BY GIVING A REGULAR CITY COUNCIL MEETING TO BE HELD ON THURSDAY, SEPTEMBER THE 22ND, 2022 AT 7:00 PM IN THE COUNCIL CHAMBER OF FLUTE, CITY HALL LOCATED AT 1 0 8 MAIN STREET FLUTE, TEXAS 77, 5 31 FOR THE BELOW LISTED ITEMS. CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO EXECUTIVE SESSION AT ANY TIME DURING THE COURSE OF THIS MEETING TO DISCUSS ANY MATTERS LISTED ON THE AGENDA AS AUTHORIZED BY THE TEXAS GOVERNMENT CODE, INCLUDING BUT NOT LIMITED TO SECTIONS 5, 5, 1 0.071 CONSULTATION WITH AN ATTORNEY 5 5, 1 0.072 DELIBERATION ABOUT REAL PROPERTY, 5, 5, 1 0.07, THREE DELIBERATION ABOUT GIFTS AND DONATIONS.5 5, 1 0.074 PERSONNEL MATTERS 5 5, 1 0.076 DELIBERATION ABOUT SECURITY DEVICES, 5 5, 1 0.087 ECONOMIC DEVELOPMENT, FOUR 8.17 5.183 DELIBERATIONS ABOUT HOMELAND SECURITY ISSUES AND IS AUTHORIZED BY THE TEXAS TAX CODE INCLUDED, BUT NOT LIMITED TO SECTIONS 3, 2, 1 0.302, TWO SALES TAX INFORMATION.
THE AGENDA AGENDA PACKET MEDIA LINK INFORMATION ARE POSTED ON THE CITY'S WEBSITE AT WWW DOT FLUTE, TEXAS.GOV.
PUBLIC COMMENTS WILL BE ALLOWED IN PERSON THAT WILL OCCUR AT THE BEGINNING OF THE MEETING OF THE PUBLIC COMMENT ITEMS TO REGISTER, TO SPEAK OR SUBMIT WRITTEN COMMENTS.
PLEASE EMAIL CITY CLERK, ROSIE KOIT, ROSIE FLUTE, TEXAS.GOV, AT LEAST TWO HOURS IN ADVANCE OF THE MEETING.
A RECORDING OF THE VIDEO MEETING WOULD BE MADE AVAILABLE UPON WRITTEN REQUEST TO THE, TO THE PUBLIC IN OF ACCORDS WITH THE OPEN MEETINGS ACT MEETING HAS NOW BEEN CALLED TO ORDER MR. BA WOULD YOU CARE TO GIVE US AN INDICATION AND THEIR FAMILIES? WE JUST ASKED THAT ALL THE DECISIONS ARE MADE NOT WOULD BE ANY WANT.
WE ASKED YOU US IN THE PLEDGE ALLEG, THE UNITED STATES AMERICA TWO REPUBLIC, WHICH STANDS ONE NATION UNDER GOD IN WITH LIBERTY JUSTICE.
OUR MEETING HAS NOW BEEN CALLED TO ORDER
UH, FIRST ITEM IS CITIZENS VISITORS COMMENTS.
I SEE NONE IN MY PACKETS AND NONE ON MY DESK.
SO I PRESUME WE HAD NO ONE SIGNED UP, BUT WE FORGO READING THAT ITEM AND MOVE TO THE NEXT ITEM,
[III. CONSENT AGENDA]
WHICH WILL BE CONSENT AGENDA AND ITEMS LISTED UNDER CONSENT AGENDA ARE CONSIDERED ROUTINE AND ARE GENERALLY ENACTED IN ONE MOTION.THE EXCEPTION OF THIS RULE IS THAT THE COUNCIL MEMBERS MAY REQUEST ONE OR MORE ITEMS, BE REMOVED FROM THE CONSENT AGENDA FOR SEPARATE ACTION.
TONIGHT CONSENT AGENDA, CONSIST OF MINUTES, PUBLIC HEARING, A SPECIAL MEETING ON THE FISCAL YEAR BUDGET, 20 22, 20 23, SEPTEMBER THE EIGHTH AT 6:30 PM AND THEN A JOINT PUBLIC, A JOINT MEETING AND A REGULAR CITY COUNCIL MEETING SEPTEMBER THE EIGHTH, 2022 AT 7:00 PM.
I WOULD CONSIDER A MOTION TO APPROVE THE CONSENT AGENDA.
SO MOVED MOVED BY COUNCIL PERSON BOND SECOND TO FIVE I'LL SECOND COUNCIL PERSON, MADS.
ANY DISCUSSION HEARING NONE I'LL ENTERTAIN A VOTE ALL IN FAVOR.
[IV. BUSINESS ITEMS]
NEXT ITEM WOULD BE BUSINESS ITEMS AND ITEM A IS A PROCLAMATION FOR THE DAUGHTERS OF THE AMERICAN REVOLUTION, RECOGNIZING SEPTEMBER 17TH THROUGH SEPTEMBER THE 23RD AS CONSTITUTION WEEK.AND IT WOULD BE A CITY OF CLUE, TEXAS PROCLAMATION, WHEREAS SEPTEMBER THE 17TH, 2022 MARKS THE 235TH ANNIVERSARY OF THE DRAFTING OF THE CONSTITUTION OF THE UNITED STATES OF AMERICA BY THE CONSTITUTIONAL CONVENTION.
WHEREAS IT IS FITTING IMPROPER TO ACCORD OFFICIAL RECOGNITION TO THIS MAGNIFICENT DOCUMENT AND ITS MEMORABLE ANNIVERSARY TO THE PATRIOTIC CELEBRATIONS, WHICH WILL COMMEMORATE THE OCCASION.
AND WHEREAS PUBLIC LAW NINE 15 GUARANTEES THE ISSUING OF PROCLAMATION EACH YEAR BY THE PRESIDENT OF THE UNITED STATES OF AMERICA DESIGNATING SEPTEMBER 17TH THROUGH 23RD AS CONSTITUTION WEEK.
NOW, THEREFORE I, CALVIN SHIFFLET MAYOR THE CITY OF FLUTE, TEXAS DUE HEREBY PROCLAIM SEPTEMBER 17TH THROUGH THE 23RD, 2022
[00:05:02]
TO BE CONSTITUTIONALLY AND ASK OUR CITIZENS TO REAFFIRM THE IDEALS OF THE FRAMERS OF THE CONS CONSTITUTION HAT IN 18, 17 87 BY LY PROTECTING THE FREEDOMS GUARANTEED TO US THROUGH THIS GUARDIAN OF OUR LIBERTIES, REMEMBERING THAT LOSS RIGHTS MAY NEVER BE REGAINED.THE WITNESS WERE OF HERE TO SET MY HAND AND CAUSE THE SEAL OF THE CITY INCLUDE TO BE AFFIX THIS 22ND DAY OF SEPTEMBER AND BE SIGNED BY MYSELF AND IT'S TESTED BY ROSIE APPOINTMENT CITY CLERK.
I THINK WE HAVE FOLKS THAT WANT TO ACCEPT THE, UH, PROCLAMATION COUNCILWOMAN TO JOIN US DOWNSTAIRS.
I GOT 10 YEARS THIS TIME, NEXT AUDIBLE TONIGHT'S AGENDA IS RECOGNITION OF EMS, EMS, STAFF ACCOMPLISHMENTS.
I THINK WE HAVE VIRGINIA AND HER FOLKS HERE THIS EVENING.
UH, WE DO MR. MAYOR THEY'VE UH, PREPARED A SONG.
WE ACTUALLY KIND OF HAD TO DRAG 'EM OUT.
UH, BUT I WANTED TO RECOGNIZE SOME OF THE HARD WORK AND EFFORT THAT THEY PUT INTO IMPROVING THEMSELVES AND ALSO IMPROVING THE SERVICE.
AND SO I'LL TURN IT OVER TO GINGER RIGHT UP THERE IS FINE.
THEY LIKE TO JUST KIND OF BE IN THE BACKGROUND, BUT, UM, WE WANNA RECOGNIZE ALL FOUR OF THESE GUYS STARTED, UH, EMS CLASSES TO ADVANCE THEIR LEVELS IN THE MIDDLE OF A PANDEMIC, WHICH SHIFTED EVERYTHING, ALL THE REQUIREMENTS, HOW THEY WENT TO SCHOOL, IT TOOK LONGER, IT DRUG OUT.
WE WEREN'T TOO SURE THEY WERE GONNA BE ABLE TO FINISH, BUT EVERY DAY THEY SHOWED UP AND WITH COMMITMENT AND GRACE AND THEY FINISHED, WHICH DOES NOTHING BUT BENEFIT OUR CITIZENS.
AND THAT'S WHAT WE EVERY DAY ARE STRIVING FOR.
SO WE JUST WANNA KIND OF RECOGNIZE THEM FOR THAT, UM, FOR JUST NOT GIVING UP.
SO FIRST ONE WE HAVE IS HAILEY CLEC WHO FINISHED HER PARAMEDIC IN THE MIDDLE OF A, OF A PANDEMIC, WHICH WITHOUT A PANDEMIC.
THE NEXT ONE WE HAVE IS TRENT LINDSEY WHO ALSO FINISHED HIS PARAMEDIC, STEPHANIE WILLIAMS, WHO FINISHED HER ADVANCED DMT AND IS CURRENTLY ENROLLED IN HER PARAMEDIC.
SHE WENT STRAIGHT THROUGH, FINISHED ONE AND STARTED THE NEXT WOW.
AND EMILY KINS WHO FINISHED HER ADVANCED DMT.
AND WHILE WE HAVE THEM HERE, TWO OF THEM GOT PROMOTED, UM, IN THE MIDDLE OF GOING TO SCHOOL FULL TIME, WORKING FULL TIME AND JUGGLING THE FAMILY.
AND THEY STILL SHOWED UP, WENT ABOVE AND BEYOND.
UH, THE FIRST ONE IS, UH, LINDSAY, TRENT, WHO WAS
WHO WAS, UH, PROMOTED TO SHIFT SUPERVISOR AND HAILEY KLE WHO WAS RECENTLY PROMOTED TO ASSISTANT EMS DIRECTOR.
SHE, UM, IF I CAN'T DO IT, SHE DOES.
UM, EVEN IF I CAN DO IT, SHE DOES.
SO I COULDN'T DO IT WITHOUT HER.
AND I APPRECIATE IT EVERY DAY.
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THANK YOU GUYS FOR ALL YOU DO.NEXT ITEM WOULD BE CONSIDERATION IMPOSSIBLE ACTION TO ADOPT A RESOLUTION NUMBER 31 DASH 2022 FOR THE APPROVAL OF THE LOW INCOME HOUSING TAX CREDIT APPLICATION.
AND IT WOULD BE RESOLUTION NUMBER 31 DASH 2022.
THE RESOLUTION OF THE CITY COUNCIL OF THE CITY INCLUDE TEXAS OF NO OBJECTION TO SUPPORT A HOUSING TAX CREDIT APPLICATION FOR THE REHABILITATION OF THE LIFE AT FOREST VIEW AND APPROVING NEGOTIATION AND EXECUTION OF THE COOPERATIVE AGREEMENT HAS DEEMED NECESSARY OR DESIRABLE AND FURTHER THEREOF.
WHEREAS THE LIFE AT FOREST VIEW LP AND AFFILIATE OF ALL THREE INVESTMENT HOLDING TO LLC COLLECTIVELY, THE APPLICANT HAD PROPOSED REHABILITATION OF 520 UNIT MULTIFAMILY RENTAL HOUSING DEVELOPMENT NAMED THE LIFE OF FOREST VIEW DE DEVELOPMENT LOCATED AT 2 0 1 HACKBERRY STREET IN THE CITY OF, OF CLUE THE CITY.
AND WHEREAS THE AFRICAN HAS COMMUNICATED TO THE CITY THAT IT INTENDS TO SUBMIT AN APPLICATION TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, TD H C A FOR NON-COMPETITIVE 4% HOUSING TAX CREDITS TO BE USED IN CONJUNCTION WITH PRIVATE ACTIVITY, BOND FUNDS TO FINANCE A PORTION OF THE COST OF REHABILITATION FOR THE DEVELOPMENT.
WHEREAS THE CITY COUNCIL OF CITY FINDS THAT THERE IS A NEED FOR A QUALIFIED BOND ISSUER, NAMELY AN IN INSTRUMENT TO INSTRUMENTALLY OF THE HOUSING AUTHORITY OF TEXA COUNTY, TEXAS TO EX EXERCISE ITS FIRE IN THE CITY TO EFFECTUATE THE ISSUE OF THE BOND AND ACCOMPLISH OTHER ACTIONS THAT MAY BE DEEMED NECESSARY OR DESIRABLE AND FURTHERANCE OF THE REHABILITATION OF THE DEVELOPMENT.
NOW, THEREFORE BE RESOLVED BY THE CITY COUNCIL AND CITY INCLUDE TEXAS FIRST THAT THE CITY INCLUDES HEREBY SUPPORTS TO PROPOSE REHABILITATION OF THE LIFE AT FOREST VIEW AND CONFIRMS THAT THE CITY COUNCIL OF THE CITY HAS VOTED SPECIFICALLY TO APPROVE THE REHABILITATION OF THE DEVELOPMENT TO AUTHORIZE AN ALLOCATION OF HOUSING TAX CREDITS FOR THE DEVELOPMENT.
SECOND, IT IS HEREBY FOUND THAT THE CITY COUNCIL OF THE CITY THAT ONE NOTICE HAS BEEN PROVIDED TO THE CITY COUNCIL, THE CITY BY AFRICAN OF ITS INTENT TO FILE AN APPLICATION FOR, TO AND TAX CREDITS TO T HCA TWO, THE CITY COUNCIL AND THE CITY HAS HAD SUFFICIENT OPPORTUNITY TO OBTAIN A RESPONSE FOR THE AFRICA REGARDING ANY QUESTIONS OR CONCERNS ABOUT THE PROPOSED DEVELOPMENT.
THIRD, THE CITY COUNCIL OF THE CITY HAS HELD A HEARING AT WHICH PUBLIC COMMENT MAY BE MADE ON THE PROPOSED DEVELOPMENT AND FOR AFTER DUE CONSIDERATION OF THE INFORMATION PROVIDED BY THE APPLICANT AND PUBLIC COMMENT, THE CITY COUNCIL OF CITY CLINTON DOES NOT OBJECT TO THE PROPOSED APPLICATION.
THIRD THAT FOR AND ON BEHALF OF THE CITY COUNCIL, THE CITY HEREBY AUTHORIZES THE FIRES AND DIRECTS THE MAYOR ARE THE CITY MANAGER OR HIS OR HER DESIGNEE TO CERTIFY THESE RESOLUTIONS TO THE TD HCA, FOURTH OF THE CITY COUNCIL AND THE CITY HEREBY APPROVE THAT DOS AND FIRE DIRECTS AUTHORIZES THE MAYOR OR THE CITY MANAGER OR HIS OR HER DESIGNATED AGENT TO NEGOTIATE AND EXECUTE A COOPERATIVE AGREEMENT WITH THE HOUSING AUTHORITY OF THE TEXAS COUNTY, TEXAS, OR ITS INSTRUMENTALLY LADY JUST FOR MENTAL LITTLE, I GUESS, HAVE DEEMED NECESSARY OR DESIRABLE TO EFFECTUATE THE RESOLUTIONS CONTEMPLATED HERE AND INCLUDING THE ISSUE OF THE BOND.
THIS RESOLUTION DULY PASSED AS 22ND DAY OF SEPTEMBER, 2022.
AND IT WOULD BE SIGNED BY MYSELF AND THE TESTED BY ROSIE POINTED CHIEF WERE, THERE ARE NOTHING IF NOT PERSISTENT
YEAH, AND I WANT TO, CHIEF FITCH HAS BEEN WORKING WITH THEM, UH, IN CONJUNCTION IN AN EFFORT TO TRY AND CLEAN UP THE PROPERTY.
UH, YOU'VE GOT THE MEMO HERE FROM CHIEF CHIEF.
DO YOU HAVE ANYTHING YOU'D LIKE TO SHARE WITH COUNSEL? UM, JUST SINCE, SINCE LAST TIME WE SPOKE, WE HAVE MET WEEKLY,
[00:15:01]
UH, VIA ZOOM TALKING ABOUT THE THINGS THEY HAVE ESTABLISHED THE OFFICE FOR US, UH, AND OUTFITTED, UH, THAT OFFICE.SO THAT WE'VE KIND OF GOT A, A SATELLITE OFFICE ON THAT SIDE OF TOWN.
UM, AS I'VE MENTIONED IN THE MEMO, THEY ARE, YOU KNOW, THEY, THEY HAVE STARTED THE PROCESS OF CLEANING DOING SOME HOUSE CLEANING BOTH INTERNALLY WITH STAFF, UNFORTUNATELY AS WELL AS SOME OF THE RESIDENTS, UM, IN THOSE THINGS, I'M ACTUALLY SENDING THEM A WEEKLY CALL LIST OF ALL THE CALLS SO THAT IF THEY'VE GOT A PROBLEM, THEY CAN, THEY CAN HANDLE THAT.
UM, YOU KNOW, LIKE I SAID, IN, IN THE, THE MEMO, THE BIG DEAL FOR ME IS HOPEFULLY CREATING SOME STABILITY OVER TIME TO WHERE, YOU KNOW, IN FOUR YEARS, THIS IS THE, THE FOURTH NAME THAT THIS DEPART APARTMENT COMPLEX.
I HATE TO SEE IT FLIPPED AND, AND US START OVER AGAIN AFTER, UH, I DID A LOT OF THINKING ABOUT THIS BEFORE I WROTE THAT MEMO AND WE HAD A MEETING LAST WEEK ON A, A DIFFERENT SUBJECT, BUT DOING WITH A GRANT OF REDEVELOPMENT.
AND THE THING THAT I TALKED ABOUT IN THAT GRANT WAS THAT 2 88 B AREA OF TRYING TO, YOU KNOW, JUST THE NEED TO REDEVELOP THAT PART OF TOWN AS WELL, TO BRING IT UP BECAUSE THERE'S A LOT OF PEOPLE THAT SEE THAT.
AND YOU KNOW, MAYBE THIS IS A START THERE.
UM, I DON'T KNOW, BUT, UM, THAT THE EFFORT IS THE EFFORT IS THERE, THEY ARE, THEY'RE PUTTING FORTH THE EFFORT AND, UH, I BELIEVE THAT THEY WILL CONTINUE AGAIN.
DO Y'ALL CARE TO ADD ANYTHING THIS EVENING, IF YOU SURE I'M, UH, DAVID PORE.
SO, UH, APPRECIATE ALL OF YOU WELCOMING US BACK TO SPEAK AGAIN.
WE CERTAINLY ARE PERSISTENT AND, UH, HOPE TO NOT USE TOO MUCH OF YOUR TIME, BUT APPRECIATE BEING WELCOMED HERE.
UH, WE HAVE BEEN ACTIVELY WORKING WITH CHIEF FIT.
WE WILL CONTINUE TO ACTIVELY WORK WITH CHIEF FIT AND EFFECTIVELY EVERY RECOMMENDATION HE'S OFFERED US, WE'VE TAKEN IMMEDIATELY INCLUDING GIVING A UNIT ON SITE TO THE POLICE TO USE AS A SUBSTATION, WHICH WE CAN'T THANK YOU GUYS ENOUGH FOR, UH, AS IT GIVES US EXTRA SURVEILLANCE AT OUR PROPERTY.
AND WHILE EACH ONE OF THOSE APARTMENTS COULD BE REVENUE GENERATING GIVING ONE UP TO BE ABLE TO ADD SECURITY TO THE AREA WAS A NO BRAINER FOR US.
UH, AND WE'LL CONTINUE TO LEAVE IT THAT WAY.
THIS PROGRAM OVERALL THAT WE'RE PROPOSING IS ULTIMATELY WHAT'LL ALLOW US TO FULLY IMPROVE THIS NEIGHBORHOOD, GO THROUGH THE IMPROVEMENTS TO VASTLY CHANGE THE WAY THE PLACE LOOKS, THE QUALITY OF THE PEOPLE THERE, AND ULTIMATELY CREATE SOME STABILITY IN THIS AREA BY VASTLY IMPROVING WHAT WAS FORMERLY A CONDEMNED COMMUNITY, THEN A DILAPIDATED COMMUNITY, AND NOW AN OPPORTUNITY FOR US TO REALLY IMPROVE THE NEIGHBORHOOD.
SO, UH, WE ARE EAGER TO PROCEED.
AS I MENTIONED LAST TIME, UH, WE WILL BE REQUIRED BY OUR EQUITY PARTNER TO STAY IN THIS DEAL FOR 10 YEARS, AS IT DELIVERS TAX CREDITS, WHOEVER THE EQUITY PARTNER IS THAT'S EFFECTIVELY RECEIVING THE TAX CREDITS IN EXCHANGE FOR COMING INTO THE DEAL WILL REQUIRE US TO DO SO, UH, AS THAT ULTIMATELY IS HOW THEY'RE GETTING PAID.
AND, AND THAT IS TYPICAL OF THESE TYPE OF TRANSACTIONS.
UH, WE ALSO WOULD LIKE TO NOTE THAT THIS REALLY IS EFFECTIVELY THE LAST TIME THAT WE CAN GET THIS APPROVED.
THIS IS THE LAST MEETING IN WHICH THIS APPROVAL WOULD MEET THE TIMEFRAME FOR US TO GET INTO THE BOND LOTTERY THIS YEAR.
AND SO IF WE DON'T RECEIVE APPROVAL TODAY, UH, UNFORTUNATELY WE CANNOT PROCEED WITH THIS PROJECT.
SO, UH, WE ARE HOPEFUL THAT WE CAN FIND THE PATH FORWARD, UH, AND REALLY APPRECIATE THE CONTINUED SUPPORT, ESPECIALLY FROM CHIEF FIT, UH, AND THE POLICE DEPARTMENT, UH, AND OVERALL THE COMMUNITY FOR, FOR BEING SO WELCOMING TO US AND, AND HELPFUL.
SO, UM, WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS.
I KNOW THERE HAVE BEEN A FEW AND, UH, TAKE, IF YOU COULD CLARIFY, AND YOU SPOKE TO JUST BRIEFLY, BUT I WANNA MAKE SURE THAT COUNCIL UNDERSTANDS THE CONTRACTUAL RELATIONSHIP THAT YOU'RE GONNA SHARE WITH THE INDIVIDUALS BUYING THESE CREDITS REQUIRES YOU TO HOLD A PROPERTY FOR 10 YEARS, CORRECT? YES.
SO TYPICALLY WITH THESE TRANSACTIONS, WHAT'S HAPPENING IS EQUITY IS COMING IN, UH, THAT IS RECEIVING THE FEDERAL TAX CREDITS.
THEY GET THOSE TAX CREDITS OVER A 10 YEAR DELIVERY PERIOD.
SO ONCE A BUILDING IS PLACED IN SERVICE, THE COST OF THE IMPROVEMENTS, PLUS THE VALUE OF THE LAND FOR THAT BUILDING IS WHAT'S CALLED A QUALIFIED BASIS.
AND THERE'S A PERCENTAGE OF THAT.
SO 4% EFFECTIVELY BECOMES THE TAX CREDIT AMOUNT THAT'S GENERATED.
THAT'S DELIVERED OVER A 10 YEAR PERIOD.
OUR PARTNER WILL REQUIRE US TO STAY IN THIS DEAL FOR 10 YEARS.
THAT'S TYPICAL FOR ANY OF THESE LI TECH TRANSACTIONS.
NOBODY REALLY EXITS THE GP POSITION OF A LI TECH TRANSACTION LIKE THIS, CUZ IT WOULD BE EXTREMELY RISKY FOR THE, UH, LIMITED PARTNER.
[00:20:01]
SO THEY, THEY THEREFORE DON'T ALLOW IT.AND SO TECHNICALLY THEY COULD CONSENT TO IT, BUT THAT DOES NOT OCCUR.
THAT, UH, IS EXTRAORDINARILY RARE, WOULD ONLY OCCUR WHEN THE, THE GENERAL PARTNER IS GROSSLY INCOMPETENT BECAUSE WE WOULDN'T WANT TO EXIT IT EITHER CUZ THAT'S HOW WE MAKE OUR DEVELOPER FEE.
SO, UH, WE WILL BE IN IT FOR 10 YEARS AND POTENTIALLY BEYOND THAT.
UH, SO FAR THE CITY OF FLUTE HAS BEEN GREAT TO US WHEN WE INITIALLY STEPPED INTO THIS PROJECT, UH, IT WAS MORE CHALLENGING THAN WE ANTICIPATED AND WE WERE EARLY ON MEETING WITH CJ BRAINSTORMING IDEAS TO TRY AND REPOSITION IT QUICKLY AS IT TURNED OUT TO BE MORE CHALLENGING THAN WE INITIALLY ANTICIPATED.
SO, UH, WE'RE HAPPY TO CONTINUE TO DO BUSINESS HERE.
IT HAS BEEN A GREAT EXPERIENCE SO FAR AND HOPEFULLY THIS TRANSACTION ALLOWS US TO FIX THIS PROPERTY UP AND RUN IT AS A BEAUTIFUL, EFFECTIVELY BRAND NEW COMMUNITY.
I THINK THEY ALSO GAVE EVERYBODY GAVE BROCHURE SOME OF THE INFORMATION AS WELL AS THE, UH, ADDITIONAL AMENITIES.
AND YEAH, WE WE'VE PROVIDED NOTES ON THE CAPEX BUDGET IN THIS MEMO.
I'LL POINT OUT THAT ANY AND ALL SECURITY RECOMMENDATIONS THAT WE RECEIVE FROM GLUTE.
WE ARE TAKING INTO ACCOUNT AND TRYING TO REFLECT ON THIS BUDGET.
SO, UH, RIGHT NOW CHIEF FITCH ACTUALLY CAN ACCESS OUR CAMERAS ON HIS CELL PHONE FROM THIS MEETING RIGHT NOW.
UH, WE'LL CONTINUE TO IMPROVE THAT SYSTEM AND ADD MORE LICENSE PLATE CAMERAS THAT THE PD IS TAPPED INTO SO THAT WE CAN QUICKLY CLEAN UP THE AREA AND WHAT WE'VE BEEN DOING OVER THE LAST WEEK.
CAUSE I PERSONALLY HAVE BEEN SITTING ON THE CALLS ALONG WITH TREY AND ALONG WITH STEVEN, UM, AND ANY POTENTIAL CRIMES OCCURRING AT THE ASSET THAT GET POINTED OUT ANY SUSPICION WHERE IT'S SUFFICIENT FOR US TO BE ABLE TO ACT ON IT, WE'RE PROCEEDING AND, AND TRYING TO REMOVE THOSE PEOPLE BY FILING EVICTIONS.
SO IF A PARTICULAR UNIT IS SUSPECTED OF SOME PARTICULAR CRIME WILL EVICT THEM AND THAT RUNS COSTS FOR US.
IT'S EXPENSIVE IF THEY'RE PAYING RENT, BUT COMMITTING CRIME FROM A REVENUE STANDPOINT, THEY'RE FINE FOR US.
BUT FROM A COMMUNITY STANDPOINT, WE'RE HAPPY TO EVICT THEM INCUR THE LEGAL COSTS, INCUR THE COST OF MAKING THE APARTMENT READY AGAIN, INCUR THE COST OF THE VACANCY TO CONTINUE TO IMPROVE THE COMMUNITY.
SO, UM, IT'S BEEN VERY HELPFUL ACTUALLY.
I THINK WE'VE CERTAINLY SEEN SOME TRACTION THUS FAR.
I WAS ASKING IF THAT ADDED UP TO 15 MILLION, CAUSE MY QUESTION WAS GONNA BE, I KNOW I BEAT Y'ALL UP PRETTY BAD LAST TIME THAT YOU WENT THROUGH THE POLICE DEPARTMENT AND THAT SOUNDS TO BE POSITIVE.
AND OBVIOUSLY I'M STILL ON THE SAME BOX.
I WAS ABOUT TAX CREDITS VERSUS TAXES PAID.
UH, AND SO THE 15.6 MILLION THAT Y'ALL SHOW HERE, THAT'S GONNA BE ACTUALLY SPENT ON THE PROPERTY.
THAT'S NOT SOMEHOW ANOTHER WATER DOWN IN THAT.
UH, AS FAR AS MANAGEMENT FEES AND OTHER FEES LIKE THAT ARE THE TOTAL CAPITALIZATION IS MUCH GREATER THAN 15 MILLION.
WHAT YOU'RE SEEING IS THE PORTION THAT'S SPECIFICALLY BEING SPENT ON CONSTRUCTION.
SO OVERALL IT'S ACTUALLY A LARGER TRANSACTION TRYING TO UNDERSTAND IT.
THAT PORTION IS ENTIRELY FOR CONSTRUCTION FOR THE USES THAT ARE NOTED THERE.
SO NONE OF THAT INCLUDES A FEE.
WE TAKE A 7% CONSTRUCTION FEE ON TOP OF THAT, BUT THAT'S OUTSIDE OF WHAT YOU'RE LOOKING AT.
SO THE TAX CREDIT, IF I UNDERSTOOD CORRECTLY, THE TAX CREDIT IS RELATED SOLELY TO THE EXPENDITURE OF THESE FUNDS ON CONCRETE CONSTRUCTION ITEMS, NOT ANY ADDITIONAL TRANSACTIONAL FEES, THE TAX CREDIT WILL THEN BE APPLIED AS AN INCOME TAX CREDIT TO WHATEVER CORPORATION OR HEDGE FUND OR WHOEVER BUYS THE TAX CREDIT.
THE TAX CREDITS HAVE ABSOLUTELY NOTHING TO DO WITH ANY OF THOSE CAPITALIZATIONS THERE.
EFFECTIVELY A, A PARTNER IS COMING IN, WE'VE DONE A SIMILAR TRANSACTION IN HOUSTON.
IT'S CALLED THE LIFE AT GRAND OAKS, WHICH IS NOTED THERE.
UM, IN THAT PARTICULAR TRANSACTIONAL PARTNER CALLED HPS IN THE DEAL THEY RECEIVE THOSE TAX CREDITS.
THEY'RE BUYING THOSE TAX CREDITS FOR SOME AMOUNT ON THE DOLLAR AND THEY'RE USING THEM TO OFFSET THEIR INCOME TAXES ELSEWHERE.
IT HAS NOTHING TO DO WITH THE TAXES SPECIFICALLY FOR OUR COMMUNITY, UH, OR THE, THE COSTS INCURRED BY THIS.
SO THAT 15 MILLION IS COMING, UM, FROM THE TOTAL SOURCES AND THE TOTAL SOURCES ARE THE BOND MONIES AS WELL AS THE TAX CREDIT EQUITY, WHICH IS EFFECTIVELY THAT PARTNER BUYING TAX CREDITS.
TECHNICALLY THERE, THERE WILL BE A 15 MILLION INVESTMENT IN, IN THAT PROPERTY, A MUCH LARGER ONE, BUT IN TERMS OF CONSTRUCTION OCCURRING, YES, 15.6 MILLION IS BEING SPENT ON IMPROVEMENTS TO THAT PROPERTY.
AND LIKE I SAID, THE, THE TAX CREDITS HAS NOTHING TO DO WITH THE CITY.
THEY'RE ALL FEDERAL THEY'RE ENTIRELY FEDERAL.
[00:25:01]
TAXES WHATSOEVER.I WILL ALSO POINT OUT SOMETHING THAT I MENTIONED LAST TIME, WHICH IS THAT THE PROPERTY OVER THE LAST YEAR HAS MADE $0 BEFORE DEBT SERVICE.
IT'S ACTUALLY BEEN AT A LOSS BEFORE DEBT SERVICE.
SO IN TERMS OF SOME INCOME METHOD AFFECTING OUR TAXES, WE'RE NOT MAKING ANYTHING RIGHT NOW.
THE INCOME IS PROJECTED TO GO UP MEANINGFULLY FROM WHERE IT SITS TODAY, THE PROPERTY ACTUALLY GENERATES ZERO INCOME AS IT SITS TODAY, IT CAN'T COVER ITS STEP SERVICE.
AND OLIVE TREE HAS BEEN PAYING OUR LENDER FOR THE PROPERTY OUT OF POCKET BECAUSE THE PROPERTY MAKES $0.
SO IN TERMS OF A, A FEAR THAT THE INCOME APPROACH WILL ACTUALLY HURT INCOME OR, OR HURT THE TAX BILL FOR IT, IT IT'S, IT'S NOT THE CASE AS INCOME WILL ONLY GO UP AS WE GO THROUGH THIS TRANSACTION, IT WAS, IT WAS ZERO.
WHEN YOU BOUGHT IT STILL ZERO IT'S NEGATIVE.
NOW WE LOSE A LOT OF MONEY ON IT EVERY MONTH.
SO WHERE DO Y'ALL MAKE YOUR MONEY FROM? AND I'M NOT AGAINST MAKING MONEY.
I'M ALL ABOUT MAKING MONEY, BUT IT, I THINK THAT'S THE THING THAT KIND OF HOLDS ME BACK IS THAT IT'S JUST TOO GOOD TO BE TRUE, THAT SOMEBODY'S GONNA COME IN, FIND, YOU KNOW, THIS MONEY AND, AND FIX THIS PROPERTY UP.
THAT'S VERY DILAPIDATED AND IN VERY BAD SHAPE, IF THERE ISN'T SOMETHING THAT THEY'RE GETTING.
AND LIKE I SAID, I'M NOT AGAINST MAKING MONEY, BUT I THINK THAT'S KIND OF LIKE, HMM, WHERE, WHAT, WHAT ARE THEY GETTING IN RETURN FOR IT? BECAUSE I FEAR MY BIGGEST FEAR IS SOMEHOW THE CITY'S GONNA LOSE OUT OR THE RESIDENTS ARE GOING TO LOSE OUT THAT LIVE THERE.
AND I THINK THAT'S WHAT KEEPS, KEEPS ME LIKE ON THE FENCE IS BECAUSE I'M LIKE, OKAY, IN TWO YEARS IS SOMETHING GONNA POP UP AND OKAY, CLETE JUST GOT FOR LACK OF A BETTER WORD SCREWED OVER SOMEHOW.
OR THE RESIDENTS ARE ALL OF A SUDDEN, YOU KNOW, NOW THE APARTMENTS LOOK FABULOUS AND WONDERFUL.
AND I KNOW YOU SAID THAT YOU WOULDN'T CHANGE RENT, BUT I DON'T KNOW.
IS THAT, IS THAT, IS THAT LIKE SET IN STONE, YOU CANNOT RAISE THE RENT OR ARE ALL THESE PEOPLE GONNA BE KICKED OUT AND NOW WE'RE, YOU KNOW, WE HAVE LUXURY APARTMENTS OR SOMETHING ONLY BE RAISED BY WHAT THE FEDERAL CONTRACT ALLOWS.
SO THAT ONE IS IT'S REGULATED.
SO THIS WILL, BY THE AMOUNT OF RENT THAT THEY COULD CHARGE FOR A LOW INCOME HOUSE IS REGULATED BY THE FEDS.
IT'S NOT REGULATED BY THE CITY OR THE COUNTY OR THE STATE IT'S REGULATED BY THE FEDS.
SO, UM, THOSE ARE ALL GREAT QUESTIONS AND, AND ABSOLUTELY THE RIGHT QUESTIONS TO ASK.
SO I'LL, I'LL GO THROUGH 'EM ONE BY ONE, IN TERMS OF THE RENT, UH, THEY'RE PEGGED TO AREA MEDIAN INCOME, WE'D BE SEEKING, UH, MAKING THIS A 60% AREA MEDIAN INCOME PROJECT.
SO THE IDEA IS THAT, UH, IF THE MEDIAN IS, IS HALF OF WHAT PEOPLE ARE, ARE MAKING IN THE AREA TAKES 60% OF THAT.
AND THAT'S THE MAX INCOME THAT SOMEONE CAN MAKE TO LIVE THERE.
ADDITIONALLY, THE RENTS ARE CALCULATED BASED OFF OF THAT INCOME METHOD.
SO 30% OF THAT IS WHAT THEY DEEM TO BE THE AMOUNT YOU SHOULD BE SPENDING ON RENT IN A GIVEN YEAR, ROUGHLY 30% OF YOUR INCOME.
SO THE MAX RENTS ARE CAPPED AT 30%, VERY IMMEDIATE INCOME.
SO IF WE WERE TO FIX THIS PROPERTY UP OUTSIDE OF A TAX CREDIT REHABILITATION SURE.
OF COURSE WE'D TRY AND RECOUP OUR MONEY THROUGH THE RENTS.
THIS PROGRAM IS DESIGNED TO INCENTIVIZE OWNERS LIKE OURSELF TO MAKE THIS PROPERTY AFFORDABLE AND BE ABLE TO MAKE MONEY WITHOUT RAISING THE RENT SUBSTANTIALLY, RIGHT.
KEEPING 'EM PEGGED TO THAT MONEY.
SO IS THE, DO YOU MAKE MONEY ON WHEN YOU SELL THE PROPERTY? IS THAT WHEN NO, WE, WE MAKE OUR, WELL, TWO THERE'S TWO ANSWERS TO THIS.
THE FIRST IS THAT WE MAKE OUR MONEY BY STOPPING LOSING MONEY HERE.
SO, UM, WE'RE NOT NECESSARILY TRYING TO MAKE A KILLING, WE'RE TRYING TO STOP FUNDING OVER A HUNDRED THOUSAND DOLLARS INTO THE PROPERTY EVERY MONTH OUT OF OUR OWN BALANCE SHEET.
SO THIS IS MAINLY A STOP LOSS MEASURE, AS IT'S DIFFICULT FOR US TO CONTINUE TO OP OPERATE THE PROPERTY TODAY.
AND WE'RE HOPING THAT IF WE PASS THIS TODAY, WE CAN FIND THE ROUTE WHERE WE CAN CONTINUE TO OPERATE AT LONG TERM.
UM, THE SECOND IS THAT THROUGH THE DEVELOPER FEE, WHICH IS SOME PORTION OF THE IMPROVEMENTS THAT WE MAKE, THAT WE GET PAID AS A FEE, AS OPPOSED TO PROFIT.
SO IT'S NOT TYPICAL PROFIT WHERE YOU BUY THE PROPERTY FOR $50,000 AND SELL IT FOR A HUNDRED THOUSAND DOLLARS.
AND YOU MAKE SOME PROFIT THAT YOU SPLIT WITH YOUR INVESTORS, BUT RATHER A DEVELOPER FEE THAT YOU GET PAID FOR CONVERTING THE PROPERTY INTO AN AFFORDABLE PROPERTY.
AND THAT'S HOW THE FEDERAL GOVERNMENT HAS DESIGNED THIS PROGRAM SO THAT YOU CAN TAKE SOMETHING, FORCE IT TO BE AFFORDABLE, WHICH LOGICALLY SHOULD MAKE IT WORTH LESS AND MAKE IT LESS PROFITABLE, BUT GET PAID TO DO THAT.
AND THAT'S THE FEDERAL GOVERNMENT'S WAY OF TRYING TO INCENTIVIZE MORE AFFORDABLE HOUSING.
SO ACTUALLY IN OUR MEMO, WE NOTED THIS WAS CREATED BY RONALD REAGAN QUITE A WHILE AGO.
UM, AND IT'S DESIGNED EXACTLY FOR THAT TO MAKE IT SO THAT WE CAN MAKE MONEY WHILE MAKING THESE RENTS STAY AFFORDABLE.
SO IT'S BASICALLY AN AGENT FEE TYPE OF SITUATION.
WE, WE MAKE A FEE BASICALLY THROUGH THE, THE PROJECT.
SO WE DO MAKE NOMINAL FEES FOR PROPERTY MANAGEMENT.
WE ACTUALLY, WE MAKE LIKE A 3% VM PROPERTY MANAGEMENT.
NORMALLY WE SPEND 6% ON PROPERTY MANAGEMENT BECAUSE IT'S A LAW CENTER FOR US.
WE INVEST IN PEOPLE LIKE TREY ON OUR TEAM.
IT'S UNUSUAL TO HAVE A DIRECTOR OF SECURITY.
IT'S UNUSUAL FOR YOU TO HAVE A MARKETING DEPARTMENT.
WE ACTUALLY BOUGHT A VAST, UH,
[00:30:01]
PROPERTY MANAGEMENT INFRASTRUCTURE.SO WE LOSE MONEY ON A MONTHLY BASIS FOR OUR OPERATIONS, BUT WE'LL MAKE MONEY THROUGH THIS, UH, BY, BY WAY OF THE STRUCTURE OF THIS PROGRAM.
SO THE MONEY COMES FROM THE FEDERAL GO IS LITERALLY THE ONE THAT'S PAYING IT EFFECTIVELY.
THESE DOLLARS ARE ALREADY SET ASIDE.
SO THESE TAX CREDITS ARE GOING SOMEWHERE.
WE JUST WANNA BE THE ONES TO GET THEM.
AND THE FEDERAL GOVERNMENT IS PUTTING THESE TAX CREDITS OUT THERE SO THAT SOME AMOUNT OF AFFORDABLE HOUSING CAN BE CREATED.
AS YOU'VE SEEN WITH THIS PROPERTY, THERE IS AN ISSUE OF AFFORDABLE HOUSING IN THIS COUNTRY.
UH, THESE PROPERTIES GET DILAPIDATED.
SOMETHING LIKE THIS BUILT IN THE SEVENTIES IS NOT GOING TO BE IN TIP TOP SHAPE TODAY.
AND IF NO ONE FIXED IT OVER THE NEXT 20 YEARS, IT'LL BECOME DILAPIDATED AND CONDEMNED AGAIN EVENTUALLY.
AND SO THESE PROGRAMS ALLOW THE PRESERVATION OF AFFORDABLE HOUSING, WHICH IS OUR MISSION TO BE ABLE TO CREATE PLACES THAT, THAT THOSE THAT ARE LESS FORTUNATE CAN LIVE, UH, AND HAVE A DECENT AND, AND SAFE AND CLEAN WAY OF LIFE, WHICH WE THINK THIS PROGRAM WILL ALLOW US TO DO.
BUT IN SHORT, THOSE TAX CREDITS THAT THE FEDERAL GOVERNMENT IS PROVIDING ARE SOLD TO EQUITY.
WE'RE MAKING MONEY OFF OF THAT TRANSACTION OF SELLING TAX CREDITS.
WE'RE NOT NECESSARILY MAKING INCOME FOR FLIPPING THE PROPERTY.
WE'RE GONNA BE IN IT FOR A LONG TIME.
WE'RE NOT NECESSARILY MAKING MONTHLY INCOME FROM REVENUES.
IT'S NOT DESIGNED TO THROW OFF THAT MUCH MONTHLY INCOME IN, IN NET INCOME.
IT'S REALLY DESIGNED TO MAKE A DEVELOPER FEE FOR CONVERTING IT INTO AFFORDABLE HOUSING MUST BE SOME GOOD TAX CREDITS.
SO MY NAME'S STEVEN DRONE AND ALSO WITH OLIVE TREE.
SO JUST A LITTLE BIT OF, OF HISTORY OF THE, THE HOUSING TAX CREDIT PROGRAM.
SO THIS, THIS CAME ABOUT IN 1986 WITH THE TAX REFORM ACT, AND IT'S BEEN BY FAR THE MOST, UM, PROGRAM THAT'S HAD THE MOST SUCCESS IN TERMS OF CREATING AFFORDABLE HOUSING PRIOR TO THIS, OR PRIOR TO 1986, IT USED TO BE, YOU KNOW, WHAT YOU THINK OF AS THE OLD, YOU KNOW, PROJECTS WHERE IT'S THE GOVERNMENT THEMSELVES ARE BUILDING THE HOUSING IN THE 1986 TAX REFORM ACT.
THEY REALLY TRIED TO INCENTIVIZE PRIVATE DEVELOPERS TO COME IN AND BUILD HOUSING.
SO REALLY KIND OF TAKING THE FEDERAL GOVERNMENT OUT OF IT, BUT SAYING, HERE ARE THE RESOURCES REAL ESTATE DEVELOPERS.
YOU MAY NOT HAVE AN INCENTIVE TO CAP YOUR RENTS.
SO, SO THE GOVERNMENT DOING THE REPAIRS, THIS MONEY IS WHAT THEY WOULD'VE USED TO DO.
IS THAT WHAT EXACTLY? SO INSTEAD OF THEM OWNING THE HOUSING, WHICH THEY DID PRIOR TO THAT, THEY SAID, WELL, WHAT IF WE GIVE IT TO THE STATES? THE STATES CREATE A PROGRAM THAT DEVELOPERS CAN COMPETE FOR THE FUNDS.
SO THESE, THESE FUNDS ARE GOING TO BE SPENT SOMEWHERE IN TEXAS.
WE WOULD LIKE TO SPEND THEM INCLUDE VERSUS, YOU KNOW, IN LUBBOCK OR EL PASO OR SOMETHING.
SO THEY'RE OUT THERE, THERE ARE TO INCENTIVIZE PRIVATE BUSINESSES TO CREATE HIGH QUALITY HOUSING AT AFFORDABLE LIMITS.
DID, IF I MIGHT, UM, BEING THE POLICE OFFICER COP THAT I AM, I COULDN'T HELP, BUT DO MY INVESTIGATING OF THEM BY THE WAY.
SO IT'S, THEY, THIS IS THEIR BUSINESS.
SO THAT LOST PART IS ONE PART OF A BIGGER CORPORATION, IF YOU WILL.
AND THAT'S WHAT MADE ME FEEL A LITTLE BIT MORE COMFORTABLE VERSUS IT BEING JUST FLY BY NIGHT THAT HAS COME IN AND, AND DONE THIS.
THE OTHER THING IS, AND I'VE GOTTA AGREE WITH DAVID.
I THINK FOR ALL OF US, THE LIFE HAS BEEN A LITTLE BIT MORE CHALLENGING THAN ALL OF US REALLY EXPECTED.
AND UNFORTUNATELY, JUST REPUTATIONS COME IN.
THEY, YOU KNOW, ONE OF THE REASONS IT'S LOST IS THEY'VE NEVER BEEN AT A HUNDRED PERCENT CAPACITY JUST BECAUSE OF THE REPUTATION OF THE, OF THOSE TYPE OF THINGS.
AGAIN, IT'S MY BELIEF THAT THESE TYPE OF THINGS WILL UP THAT I'M HOPING THAT NEXT DOOR WILL HAVE UP HERE GAME AS WELL BECAUSE OF THESE RENOVATIONS.
THEY'RE TALKING ABOUT FENCING GATES NEXT DOOR, SINCE I'VE BEEN HERE, THEIR GATES HAVE NEVER WORKED.
SO AGAIN, MAYBE WE GET THAT TRICKLE EFFECT OF THE WHOLE AREA WITH THE ADDITIONS OF THIS.
SO I, I DID, I DID MY INVESTIGATIONS ON THEM AS WELL.
I EVEN HAVE TO COME ACROSS A RENT ROLE OF, OF EVERYBODY THAT'S THERE.
AND I WAS AMAZED AT THE DELINQUENCIES THAT THEY'RE FACING THERE, JUST BECAUSE IT'S WHO IS RENT FROM THEM AT THIS
[00:35:01]
THERE'S, THERE'S NO QUESTION IN ANYBODY'S MIND HERE.I DON'T THINK THAT THAT COMPLEX NEEDS TO BE RENOVATED.
I DON'T THINK THERE'S, I DON'T THINK THERE'S A QUESTION IN ANYBODY'S MIND ABOUT THAT.
I THINK THAT, I THINK THE QUESTION IS MAKING SURE THAT EVERYBODY HAS THE WARM AND FUZZY, THAT, THAT IT'S GONNA BE A LEGITIMATE PROJECT.
I'M NOT WARM AND FUZZY, BUT I'M GONNA PUT FAITH SOMEWHERE.
THE WARM AND FUZZY THAT IT IS, YOU SAY FEDERAL GOVERNMENT TAXES.
YOU KNOW, KNOW I'M SELF-EMPLOYED SO I GET REALLY DEFENSIVE REALLY QUICK.
AND I TOLD THEM THAT AFTER THE MEETING, LAST TIME I UNDERSTAND I WAS BEING HONEST, BUT YEAH, IT SOUNDS LIKE THERE'S NO DOUBT THIS ISN'T, YOU CAN'T MAKE A LIVING DOING THIS COMPLEX.
IT TOOK MANY TO GET TO THIS POINT.
UH, AND, UH, WE OBVIOUSLY WOULD LIKE TO SEE THE MONEY THERE.
WELL, UH, I DON'T, YOU KNOW, I MEAN, ON THE, ON THE LINES OF REVENUE, A LOT OF LARGE CORPORATIONS WORK ON VOLUME INSTEAD OF, INSTEAD OF, UH, IMMEDIATE PROFIT, YOU KNOW, THAT, THAT SOME PEOPLE WILL TAKE A TWO OR 3% RETURN ON A BILLION DOLLARS VERSUS A 10 OR 12% RETURN ON A HUNDRED THOUSAND DOLLARS.
AND THAT'S KIND OF WHERE THAT'S KIND OF WHERE THIS PLAYS IN, YOU KNOW, AND OUR PARTICULAR BUSINESS THAT I'M IN, YOU KNOW, IF YOU GET A MAINTENANCE CONTRACT AND YOU GET, IF YOU GET ENOUGH MONEY TO COVER YOUR COST AND, AND PAY YOUR LIGHT BILL, YOU'RE MAKING PRETTY GOOD MONEY ON A MAINTENANCE JOB.
WHEREAS ON A, YOU KNOW, IF IT'S A HARD DOLLAR LUMP SUM JOB, WE GET TO BUILD, WE GET TO BUILD OUR BID AND PUT OUR NORMAL PROFIT IN.
IF WE DON'T, WE DON'T, BUT THE MAINTENANCE, THE MAINTENANCE AREA ARENA THAT WE'RE IN IS SO COMPETITIVE THAT YOU CAN'T MARK IT UP THE WAY YOU WOULD'VE A TYPICAL JOB.
I'M SURE YOU DEAL WITH THE SAME THING WHEN, WHEN YOU'VE BEEN IN RECORD SERVICE.
WELL, LIKE I SAID, I THINK THE BIGGEST THING FOR ME WAS THE OVERALL PICTURE OR VISION TALKING TO THE GUYS, UH, AFTERWARDS, NOT SINCE, BUT AFTERWARDS, UH, THIS IS ALL PROBABLY ONLY A SMIDGET OF THE PICTURE THAT WE'RE SEEING OF WHAT THESE GENTLEMEN DO.
NOT NAIVE ENOUGH TO KNOW THAT.
AND I DON'T FAULT YOU FOR IT AT ALL.
I MEAN, GOD, YOU SAID YOU LIVE IN NEW YORK, YOU GOTTA DO SOMETHING.
WELL, I HAVE READ THE RESOLUTION.
I WOULD BE LOOKING FOR A SAYS CONSIDERATION POSSIBLE ACTIONS.
SO I'M LOOKING FOR A MOTION TO APPROVE THE RESOLUTION OR DENY THE RESOLUTION MAYOR.
THIS IS A PIECE OF PROPERTY THAT'S IN MY WARD AND I'M ALWAYS LOOKING FOR IMPROVEMENTS.
AND THIS, I THINK IT'S, THERE'S AN IMPROVEMENT.
I'M GONNA MAKE A MOTION THAT WE APPROVE THIS, UH, RESOLUTION RESOLUTION RESOLUTION.
NUMBER 31, HAVE A MOTION BY COUNCIL QUINN THAT WE APPROVE RESOLUTION NUMBER 30, 20, 20, 30, 20 22 IS WRITTEN.
ANY FURTHER DISCUSSION HEARING NONE.
I'LL ENTERTAIN A VOTE ALL IN FAVOR.
THANK YOU GUYS FOR YOUR PERSISTENCE.
YEAH, WE APPRECIATE Y'ALL PROVIDING THE INFORMATION AND APPRECIATE Y'ALL WORKING WITH, UH, WITH THE POLICE DEPARTMENT AS CLOSELY AS YOU HAVE.
AND, AND WE NEED TO MAKE SURE THAT RELATIONSHIP CONTINUES.
CHIEF, IF YOU DON'T SEE 'EM IN THE NEXT 30 DAYS, CALL IT'S BE A LONG RELATIONSHIP.
NEXT ITEM WOULD BE CONSIDERATION AND POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 38, 20 22 MODIFYING THE INVESTMENT POLICY.
I'M NOT GONNA READ THIS WHOLE THING GONNA READ THAT'S GREAT.
IT WOULD BE RESOLUTION NUMBER 38 DASH 2022, A RESOLUTION APPRO AND ADOPTING THE REVISED INVESTMENT POLICY AND STRATEGY OF THE CITY OF FLUTE, TEXAS APPOINTING THE INVESTMENT OFFICERS IN MAKING VARIOUS PROVISIONS RELATED TO THE SUBJECT.
WHEREAS THE PUBLIC FUNDS INVESTMENT ACT, TEXAS GOVERNMENT CODE CHAPTER 2, 2 56.
THE ACT PROVIDES THAT THE GOVERNING BODY
[00:40:01]
OF AN INVESTMENT IND SHALL ADOPT A WRITTEN INVESTMENT POLICY REGARDING THE INVESTMENT OF ITS FUNDS.AND WHEREAS THE WRITTEN INVESTMENT POLICY IS AMENDED WILL FURTHER PROTECT THE ASSETS BY IDENTIFYING, BY IDENTIFYING INVESTMENT OBJECTIVES, ADDRESSING THE ISSUES OF INVESTMENT RISK VERSUS REWARDS AND PROVIDING THE FRAMEWORK FOR THE ESTABLISHMENT OF CONTROLS, LIMITATIONS, AND RESPONSIBILITIES OF CITY EMPLOYEES IN THE PERFORMANCE OF THEIR FIDUCIARY RESPONSIBILITIES.
WHEREAS THE CITY COUNCIL MAY APPROVE ANY AMENDMENTS TO SUCH INVESTMENT POLICY.
NOW, THEREFORE BE RESOLVED BY THE CITY COUNCIL, CITY FOOD, TEXAS, THAT CITY COUNCIL APPROVE AND ADOPT THE INVESTMENT POLICY ATTACHED HERE.
TWO AS EXHIBIT A AND MADE PART HERE, PART HERE OF BY THIS REFERENCE CITY COUNCIL APPROVES AND ADOPTS THE INVESTMENT STRATEGY INCLUDED IN THE INVESTMENT POLICY ATTACHED HERE, TWO AS EXHIBIT A AND MADE PART HERE OF BY THIS REFERENCE AND THE CITY COUNCIL DESIGNATION CITY MANAGER, OR HIS OR HER DESIGNATED REPRESENTATIVE.
AND THE FINANCE MANAGER IS A CITY'S INVESTMENT OFFICERS INCLUDED WITHIN THE INVESTMENT POLICY ATTACHED HERE TOO, AS EXHIBIT A AND MADE HERE OF PARK HERE BY THIS RE PART HERE OF, BY THIS REFERENCE TOO MANY PARTS AND HEROES PATH ADOPTED BY THE CITY COUNCIL AND CITY INCLUDE TEXAS ON THE 22ND DAY OF SEPTEMBER, 2022.
IT WOULD BE ASSIGNED AND ASSIGNED BY MYSELF AND TESTED BY ROSE EMPLOYMENT AND APPROVED AS TO FORMED BY OUR CITY ATTORNEY, CHRISTOPHER DUNCAN.
DOES THIS SAY ANYWHERE YOU'VE GUARANTEED THE CITY 5%? I WISH I COULD GET YOU 5%, BUT THAT IS NOT THE, THAT IS NOT WHAT I'M HERE TO PEDAL.
SO WE WERE DUE FOR THIS, UH, BUT IN TALKING WITH MOVING ABOUT MOVING OUR MONEY INTO ONE OF THE, ONE OF THE NEW POOLS, THE CLASS POOL, WHICH ISN'T NEW, BUT I'LL EXPLAIN THAT IN JUST A SECOND.
UH, NEW, THE CLUE, I GUESS, IS THE BEST WAY TO PUT IT.
UH, THEY REQUIRE THE TERM QUALIFIED REPRESENTATIVE, NOT JUST REPRESENTATIVE.
SO WE ARE, WE CHANGED THE NOMENCLATURE.
SO THIS IS ANOTHER DOCUMENT THAT WE JUST UPDATE.
AND JUST AS WE GO, THINGS NEED TO BE UPDATED AND CHANGED AND CORRECT.
BASICALLY OUR EXISTING POLICY.
THIS IS OUR EXISTING INVESTMENT POLICY WITH A COUPLE OF VERBIAGE CHANGES IN IT.
UH, WE STILL HAVE THE SAME RULES REQUIRING PRUDENCE, LIQUIDITY, SAFETY, AND SECURITY OF OUR FUNDS THAT MEETS THE DEFINITIONS UNDER THE PUBLIC FUND INVESTMENT ACT.
UH, WE ONLY INVEST, IT HAS TO BE COLLATERALIZED AND THEN SHARED, UH, AT A, AT A RATE OF A HUNDRED, 2% PER STATE LAW.
SO I, I DID NOT READ THE WHOLE THING.
DON'T EVERYBODY THINK I'M LIKE AN OVERACHIEVER.
SO IS IT TRUE THAT WE ARE THE INVESTMENTS THAT WE PUT MONEY IN IS ONLY, IT CAN ONLY BE 24 MONTHS LONG, BUT ON CERTAIN NOTES.
SO IF WE BUY A CERTIFICATE OF A DEPOSIT, THAT'S THE, THE MAXIMUM MATURITY THAT WE'RE ALLOWED TO DO UNDER THIS NOTE.
UH, WE DID THAT, UH, IN ORDER TO THE THERE'S TYPICALLY SPEAKING, IF YOU'RE GONNA DO A CD, YOU DON'T WANNA LOCK THAT MONEY UP IN CASE YOU HAVE A SITUATION.
GOD FORBID WE GET HIT BY OUR METEOR NEXT MM-HMM
I MEAN, WE'VE BEEN D WE CAN KNOCK ON WOOD.
AND SO, UH, YOU WANT TO HAVE THE ABILITY TO GET THAT MONEY ACCESS, ACCESS IT QUICKLY.
SO YOU WANT SAFETY, SECURITY, LIQUIDITY.
THOSE ARE THE THREE THINGS YOU'RE LOOKING FOR.
AND SO YOU DO A SHORT TERM NOTE LIKE THAT BECAUSE YOU IDEALLY, THE PENALTY FOR WITHDRAWAL WOULD BE LESS.
CAUSE WHEN I READ IT, I WAS LIKE, WHAT ARE WE BUYING? JUST A BUNCH OF CDS.
WELL, YOU LAUGHED, BUT THE YIELD, UH, THIS LAST YEAR HAS BEEN BETTER FOR CDS THAN JUST ABOUT EVERYTHING ELSE IN THE MARKET.
UH, SO THERE ARE CERTAIN BANKS THAT WE WILL GO SHOP WITH.
UH, BUT WE'VE, WE'RE GETTING READY.
WE HAVE, AND I'LL DISCUSS THIS IN THE NEXT ITEMS, BUT WE HAVE A CO WE HAVE A LOT OF MONEY WITH ANOTHER HEDGE FUND, UH, THAT IS FEEDING US TO DEATH.
AND SO WE'RE ASKING TO MOVE MONEY OUT OF THAT AS THOSE ITEMS. SO THOSE INSTRUMENTS MATURE, WE'RE GONNA MOVE THOSE MONIES INTO THE POOLS, UH, MAYBE A LITTLE BIT LOWER YIELD, BUT A LOT LESS VOLATILITY AND A LOT MORE, UH, I GUESS, INCOME FRIENDLY FOR THE CITY, A LOT LESS SERVICE CHARGE AND A LOT LESS SERVICE CHARGE.
YOU HAVE A MOTION TO APPROVE RESOLUTION NUMBER 38, 20 22.
I'LL MAKE THAT MOTION NO MADE BY I'LL SECOND FURTHER DISCUSSION HEARING NINE I'LL ENTERTAIN VOTE ALL IN FAVOR.
NEXT ITEM WOULD BE CONSIDERATION OF POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 39 DASH 2022 AUTHORIZING CREATIONS OF ACCOUNTS WITH TECH POOL PRIME AND ACCORD WITH REVISED INVESTMENT POLICY.
SO TALKING ABOUT YIELD, UM, TECH POOL, WE HAVE BEEN WITH FOR, I DON'T KNOW HOW MANY YEARS,
[00:45:01]
PROBABLY SINCE ITS INCEPTION, IT'S A POOL CASH ACCOUNT HELD BY MULTIPLE CITIES.THEY BUY POSITIONS AND COMMERCIAL.
TRADITIONALLY THEY BUY POSITIONS IN FEDERALLY BACKED INSTRUMENTS.
UH, THIS IS A LITTLE BIT DIFFERENT.
IT'S STILL GUARANTEED AND COLLATERAL IS 102%, BUT THEY DEAL IN COMMERCIAL PAPER.
SO, UH, IT'S PRIVATE INVESTMENT MONEY.
THE YIELDS A LITTLE BIT HIGHER.
LAST TIME I CHECKED WAS ABOUT 0.5 ABOVE WHAT WE YIELD ON THE OTHER FUND.
I'M NOT SAYING THAT WE ARE GOING TO MOVE OUR MONEY INTO THIS ACCOUNT, BUT IT GIVES US THE FLEXIBILITY.
IF WE WANNA STAY IN A, IN A BACK COLLATERALIZED POOL AND WANT A LITTLE BIT HIGHER YIELD, WE MIGHT AVAIL OURSELVES WITH THIS, BUT THIS DOESN'T, WE HAVEN'T SET A TERM.
WE HAVEN'T TALKED ABOUT WHAT KIND OF MONEY WE MIGHT BE MOVING INTO OUT OF THIS POOL.
THIS IS JUST ONE MORE TOOL IN THE POOL TOOL, IN THE POOL BOX OR TOOL IN THE TOOLBOX FOR US IN TERMS OF MENTALITY OR INVESTMENTS.
SO, SO WE HAVE NOTHING IN TEXT POOL RIGHT NOW.
MA'AM WE HAVE, UH, SIGNIFICANT.
I WAS ABOUT, I THOUGHT I'D HEARD IT BEFORE.
THIS IS THEY, THEY, THEY CREATED ANOTHER FUND.
THEY HAVE TEXT POOL, WHICH IS THE TRADITIONAL POOL THAT WE WERE INVOLVED WITH.
UM, THIS WILL ALLOW US TO BUY COMMERCIAL BACK PAPER, WHICH IS TYPICALLY IF SO IT'S LIKE A BRANCH OFF OF CORRECT TAX.
BUT INSTEAD OF FEDERALLY, UH, INSTEAD OF FEDERAL INSTRUMENTS, IT'S PRIVATE BOND INSTRUMENTS THAT ARE BACKING.
I BET THESE GASKET TIPS, THEY PROBABLY DIFFERENT TYPES.
SO THE YIELD, LIKE I SAID, LAST TIME WAS ABOUT A HALF A POINT HIGHER.
I HAVEN'T LOOKED AT IT SINCE THE FED MADE THEIR MOVED TO SEE WHAT THE YIELD IS, BUT WE DON'T HAVE ANY MONEY IN THIS POOL.
WE HAVE IT IN TEXT POOL, REGULAR.
SO DO WE HAVE LIKE REPRESENTATIVE THAT, YOU KNOW, WHEN WE, YES, WE HAVE LIKE AN INDIVIDUAL REPRESENTATIVE OR WHATEVER THAT YOU CALL AND WHEN WE WANT, THIS IS WHAT WE WANT TO DO.
THE CITY OF CLETE WANTS TO, OKAY, WE'RE GONNA MOVE INTO THIS POSITION.
I JUST DON'T KNOW HOW THEY WORK.
SO, UH, AND THE GUY FROM CLASS WANTED TO COME TONIGHT, BUT I TOLD HIM WE HAD AN EXECUTIVE SESSION.
HE'S GOT A DRIVE FROM THE NORTH SIDE OF, BUT WE CALL, THESE GUYS ARE LOCATED IN AUSTIN AND WE WILL CALL HIM AND SAY, OKAY, WE'VE GOT X NUMBER OF MONEY THAT WE'RE GONNA MOVE INTO THIS.
AND WE WANT TO, WE WANT IT FOCUSED IN THIS WAY.
AND THEN THEY CALL WHAT NORMALLY HAPPENS IS CHRIS WILL MAKE THAT CALL, SEND THAT EMAIL, AND THEN THEY'LL CALL ME FOR VERIFICATION.
WE HAVE A PASSCODE AND A KEY TO ANY, IF THERE'S JUST AS YOU WOULD WITH ANY STANDARD BANK VERIFICATION ON THE TRANSFER.
SO, BUT WE TRY NOT TO MOVE MONEY AROUND THE WHOLE LOT, UH, JUST BECAUSE THE LONGER IT'S IN, THE MORE IT YIELDS.
SO IS WHEN WE DO DECIDE IF WE'RE GONNA SEND MONEY OP, SO LET'S SAY WE PASS THIS AND IT COMES TIME TO MOVE MONEY OVER.
DO, DOES THE CITY COUNCIL VOTE ON MOVING MONEY OR IS IT YOU'VE MADE US THE INVESTMENT OFFICERS.
AND SO, AS LONG AS WE STAY WITHIN THAT POLICY, WE WILL, WE CAN MOVE THAT MONEY.
WE CAN, IF YOU WOULD LIKE US TO, WE CAN BRING IT TO YOU EVERY TIME WE DO A TRANSACTION, BUT NO, YOU DON'T HAVE TO.
I JUST, I'M STILL TRYING TO LEARN HOW IT WORKS.
YEAH, NO, BUT NO, YOU WE'RE YOUR INVESTMENT OFFICERS.
WE PROVIDE A, IF YOU LOOK ON THEIR FINANCIAL REPORT, YOU GET THE ACTUAL PERFORMANCE REPORT.
I WILL SAY THAT THE FOLKS THAT ARE LISTED AS THE INVESTMENT OFFICERS IN OUR, IN OUR PROGRAM ARE IN OUR POLICY.
THEY HAVE TO GO TO SCHOOL EVERY, EVERY OTHER YEAR, EVERY OTHER YEAR.
IT'S SO MUCH FUN AND 40 HOURS.
THAT'S THAT WARM AND FUZZY FEELING.
THEY HAVE, THEY, THEY ARE, THEY ARE TRAINED WHAT THEY CAN DO AND HOW THEY CAN DO IT.
EXACTLY, IT'S VERY HIGHLY REGULATED.
NEED A MOTION TO APPROVE RESOLUTION NUMBER 38 DASH 2022.
FIRST MAD DISCUSSION HEARING YOU NONE.
I'LL ENTERTAIN A I'LL ENTERTAIN A VOTE.
NEXT ITEM WOULD BE, THAT WAS REVEL.
I THINK I MESSED UP DOING A ROSIE.
WOULD EVERYONE CARED TO AMEND THEIR MOTION? AND SECOND, OH, MY SECOND IS A HEAR YOU AMENDS FIRST.
DID NO RE JUST TO BE ON THE SAFE SIDE.
WE'VE GOT IT STRAIGHTENED OUT NOW.
THE NEXT ONE WOULD BE RESOLUTION NUMBER 40 DASH 2022.
AND IT WOULD BE CONSIDERATION IMPOSSIBLE ACTS TO ADOPT RESOLUTION 40 22 AUTHORIZING THE CREATION OF TEXAS CLASS ACCOUNTS IN ACCORD WITH REVISED INVESTMENT POLICY.
[00:50:01]
TEXAS CLASS WAS CREATED AS A COMPETITOR TO TEXT POOL BACK IN THE MID NINETIES, LATE EIGHTIES MADE MID NINETIES.UH THEY'RE SO THEY'RE BASICALLY OPERATE IN THE SAME MANNER AS OL.
THEY HAVE THE SAME COLLATERALIZATION AS OL TEXAS CLASS ACTUALLY PAYS A LITTLE BIT BETTER IN, UH, WE WILL BE AVAILING OURSELVES.
THE DIFFERENCE TO THEIR MODEL, UH, IS QUITE FRANKLY THAT INSTEAD OF ACCRUING INTEREST ON A MONTHLY BASIS WITH TEXT CLASS, WE, WE ACCRUE THAT INTEREST AT DAILY BASIS.
SO WE'RE COMPOUNDING ON A DAILY BASIS INSTEAD OF MONTHLY.
UH, THERE'S A LITTLE BIT MORE LIQUIDITY INVOLVED.
THE PROBLEM WITH THAT IS, IS THE YIELD'S A LITTLE BIT LOWER, UH, BECAUSE IT DOES PAY A LITTLE BIT QUICKER, I GUESS, IS THE BEST WAY TO PUT IT.
SO THEY'RE ABOUT 0.2 BASIS POINTS BEHIND TEXT POOL RIGHT NOW, IN TERMS OF, UH, THE ACTUAL POOL ITSELF.
THEY TOO HAVE A PRIME, UH, WHICH IS A COMMERCIAL PAPER FUND THAT THEY RECENTLY STARTED.
UH, THEY'RE OUTPERFORMING TEXT POOL AND TEXT PRIME IN THEIR COMMERCIAL PAPER FUND.
SO THIS WOULD BE OUR, OUR MOVE HERE WOULD PROBABLY BE TO TAKE SOME OF THE MONEY THAT WE HAVE WITH UBS AND MOVING INTO THE REGULAR FUND AT TEXT CLASS.
WE DON'T ANTICIPATE MOVING INTO ANY, EITHER ONE OF THE PRIME ACCOUNTS AT THIS TIME, UNLESS THE YIELDS GET REALLY CRAZY.
BUT RIGHT NOW THE INTEREST RATES GOING UP ARE HELPING US OVERALL, UH, PRESERVE OUR POSITION.
SO I DON'T SEE A NEED TO GO PUT MONEY ON THE PRIME SIDE.
UH, WE WILL HAVE A LITTLE BIT LOWER YIELD WITH CLASS, BUT WE EARN THAT MONEY DAILY.
SO IT SHOULD IN THEORY CATCH ITSELF UP.
WELL, IT WOULD BE, IT WOULD BE TWO ACCOUNTS THAT YOU COULD POSSIBLY HAVE A CERTAIN AMOUNT IN EACH ONE AND COMPARE WHAT THE YIELD WAS CORRECT.
SO AGAIN, ONE MORE TOOL IN THE POOL BOX, I GUESS, SIR.
ONE MORE TOOL IN THE POOL BOX AND ONE MORE POOL IN THE TOOL BOX.
DO I HAVE A MOTION TO APPROVE RESOLUTION NUMBER 40 DASH 2022 MOTION MADE BY COUNCIL QUINN? DO I HAVE A SECOND
AYE, UNANIMOUS, NEXT ITEM, WHETHER BE CONSIDERATION TO POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 41 DASH 2022, AWARDING THE BID FOR THE PURCHASE OF A ONE BUCKET TRUCK.
AND I'LL LET JOHN KIND OF EXPLAIN HOW WE GOT TO WHERE WE'RE AT.
UH, BUT WE HAD BUDGETED, UH, FOR STREET EQUIPMENT THIS YEAR.
WE HAD TALKED ORIGINALLY ABOUT A STREET SWEEPER Y'ALL SAID FIND SOMETHING WE WOULD PUT MORE USED TO JOHN IDENTIFIED A BUCKET TRUCK.
SO THEN WE BEGAN TRYING TO FIND A BUCKET TRUCK THAT WE COULD GET WITHIN A TIMEFRAME THAT WOULD ALLOW US TO ATTRIBUTE IT TO THIS YEAR.
UM, AND I'LL LET YOU TAKE IT FROM THERE, BUT BASICALLY WE HAD TO GO TO RFP ROUTE JUST TO BE ABLE TO GET THE BIDS IN, BUT YEAH, WE'VE TR UH, YEAH, SO OVER THE PAST YEAR OR SO, WE HAVE TRIED ALL OVER THE UNITED STATES TRYING TO FIND A BUCKET TRUCK OR TRYING TO LIFT, UH, EVEN A, A LIFT TO REPLACE THE BUCKET TRUCK THAT WE HAD.
THE BUCKET TRUCK WE HAD WAS LIKE A 72 MODEL TRUCK.
AND, AND THERE WAS ONLY ABOUT TWO PEOPLE THAT WOULD GET IN IT TO OPERATE IT.
IT WAS, IT WAS PRETTY DANGEROUS, BUT, UH, WE SINCE GOT RID OF THAT TRUCK, IT'S BEEN AUCTIONED OFF.
UM, WE HAVE SEARCHED ALL OVER AND I, I LITERALLY LARRY UTILITY SUPERVISOR, HE HAS SEARCHED ALL OVER THE UNITED STATES TRYING TO FIND EITHER A LIFT OR BUCKET TRUCK IN, IN THE TIMEFRAME TO GET ONE WAS REACHING OUT TO 24 BEFORE WE COULD EVEN POSSIBLY GET ONE, UH, THE LIFTS WE THOUGHT AT ONE TIME WE HAD A LIFT, BUT THERE WAS TOO MUCH, UM, UNCERTAINTY ABOUT THE LIST WE BACKED OUT OF THAT DEAL.
THERE, UH, THIS TRUCK HERE, AS, AS CJ SAID, WE DID HAVE TO GO OUT AN RFP FOR THIS TRUCK BECAUSE THE VENDOR THAT HAS THIS TRUCK, UH, IS NOT ON BUYBOARD.
SO WE PUT OUT AN RFP FOR THIS.
IT WAS POSTED, IT WAS PUT IN PAPER, UH, PUBLISHED.
AND, UH, THE BID WERE DUE ON, UH, SEPTEMBER 15TH.
WE RECEIVED ONE BID, WHICH WAS THIS TRUCK HERE.
AND IT CAME WITH EQUIPPED WITH EVERYTHING THAT THE OPTIONS THAT WE WERE LOOKING FOR AND IT WAS READY.
IT WAS READY TO BE ONCE WE MADE THE APPROVAL AND EVERYTHING THAT'S READY TO GO.
SO NOW THERE'S ONE THING ABOUT THE TRUCK.
SO, UH, PART OF THIS, I BELIEVE THIS REQUEST HERE IS THAT, UH, THERE'S TWO OPTIONS OF HOW WE WOULD BE ABLE TO GET THIS TRUCK.
THEY COULD DELIVER IT, BUT THE DELIVERY COST WAS GONNA BE ABOUT $4,500 TO GET IT FROM THERE TO HERE, WE THREW UP THE OPTION THAT WE COULD PROBABLY GO AND GET THE TRUCK FOR FAR LESS THAN THAT.
AND THAT'S UP TO YOU, WHICHEVER WAY, IF YOU APPROVE THIS, HOW WE WOULD GO ABOUT TAKING DELIVERY OF THE TRUCK, WE WANT TO BE ABLE TO SEE THE TRUCK, WHETHER IT'S, IF IT'S DELIVERED HERE PRIOR TO PAYING FOR THE TRUCK, OR WE
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GO THERE AND TAKE A LOOK AT THE TRUCK, MAKE SURE THAT IT IS EVERYTHING IS WE SEE FIT, BUT I'D GIVE CREDIT TO LARRY.HE, HE, HE'S WORKED REALLY HARD OVER THE PAST, UH, SIX, EIGHT MONTHS TRYING TO FIND SOMETHING.
AND WE LITERALLY HAVE SEARCHED ALL OVER THE UNITED STATES FOR ONE.
AND THIS IS THE ONLY ONE WE HAVE FOUND.
SO WE ASKED THAT YOU, UH, CONSIDER APPROVING IT SO THAT WE CAN GO AHEAD AND MOVE ON GETTING THIS TRUCK.
WE, WE WOULD ACTUALLY BE ABLE TO GO AND GET THIS TRUCK NEXT WEEK, IF IT'S APPROVED AND A BUCKET TRUCK, IS THAT THE ONE THAT HAS LIKE THE ARM? LIKE YOU SEE THE, JUST THE REACH ARM.
WE USE THE TRUCK ON IN MANY AREAS.
UH, WE PUT BANNERS UP, PUT BANNERS UP, TAKE BANNERS DOWN.
WE CUT LIMBS DOWN THAT ARE OUT OF REACH.
WE'VE USED IT WITH PD SEVERAL TIMES.
WE'VE HAD TO RENT LIFTS HERE RECENTLY OVER THE PAST EIGHT MONTHS, WE'VE HAD TO RENT A LIFT EVERY TIME WE NEEDED TO USE SOMETHING.
AND, UH, THE PROBLEM WITH THAT IS YOU RENT IT HALF A DAY.
IT'S LIKE THREE OR $400, THEN YOU GOTTA TAKE IT BACK.
THEN YOU GOTTA RENT IT AGAIN TO EITHER TAKE THE BANNER DOWN OR, OR HELP WITH THIS.
OR WE RENT IT FOR A WEEK OR FOR A MONTH.
UH, THIS HERE WOULD REPLACE THE TRUCK THAT WE DID HAVE, AND IT IS A NEW TRUCK AND IT WOULD BE RESOLUTION NUMBER 41 DASH 2022 RESOLUTION OF THE CITY COUNCIL AND CITY INCLUDE AWARDING BID FOLLOWING THE OPENING OF SEAL BIDS FOR THE PROCUREMENT OF A BUCKET TRUCK.
WHEREAS THE STATE OF TEXAS AND THE CITY HAVE ADOPTED STRINGENT PROCUREMENT PROTOCOL FOR THE ACQUISITIONS OF GOODS AND SERVICES.
AND WHEREAS THE CITY INCLUDE TEXAS HAS BUDGETED APPROXIMATELY $170,000 TO PROCURE A BUCKET TRUCK OR LYFT FOR THE STREETS DEPARTMENT AND ITS FISCAL GEAR 20 21, 20 22 BUDGET.
WHEREAS STAFF WERE ABLE TO LOCATE WEREN'T WERE UNABLE TO LOCATE ANY QUALIFYING VEHICLES OR EQUIPMENT THROUGH VENDORS, AFFILIATED WITH ANY PURCHASING COOPERATIVE, TO WHICH THE CITY IS A MEMBER, WHEREAS CITY HAS KNOWN TO EXCEED.
WHEREAS THE EQUIPMENT WAS KNOWN TO EXCEED THE, THE TOTAL COST OF $50,000, WHICH TRIGGERED REQUIREMENT FOR THE SOLICITATION OF CO BIDS.
WHEREAS THE CITY CONDUCTED SUCH SOLICITATION THROUGH RFP ON THE CITY'S WEBSITE AND IN THE NEWSPAPER FOR THE REQUIRED PERIOD UNDER THE PROCUREMENT POLICY.
WHEREAS THE ONLY THERE WAS, THERE WAS ONLY ONE RESPONSE TO THE SOLICITATION, WHICH WAS PROVIDED BY RING POWER, UTILITY EQUIPMENT CORPORATION OF JACKSONVILLE, FLORIDA, AND THE AMOUNT OF $150,656.
NOW THAT THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF CITY INCLUDE TEXAS, THAT THE PURCHASE OF THE BUCKET TRUCK FROM MARINE POWER, UTILITY OF EQUIPMENT CORPORATION OF JACKSONVILLE, FLORIDA, AND THE AMOUNT OF $150,656 FOLLOWING THE OPENING OF THE SEAL BID PROCUREMENT PROCESS IS HEREBY APPROVED.
THIS RE RESOLUTION DUTY PASSED IS 22ND DAY OF SEPTEMBER, 2022, AND BE SIGNED BY MYSELF TO BY ROW 20 CITY CLERK.
CURB I'LL MAKE THAT MOTION, HAVE A MOTION BY COUNCILMAN QUINN.
DO I HAVE A SECOND? I'LL SECOND TAKE BY COUNCIL PERSON.
MADS OF WHAT YOUR MODEL IS 20 21 20.
I WANNA SAY ON THERE ABOUT SAY 20 MINUTES, ACTUALLY WE GOT THE, ACTUALLY THEIR PAPERWORK CAME IN BACK TO DATE.
AND HOW MANY, DO WE KNOW HOW MANY HOURS OR IT HAS ZERO HOURS OR THERE'S OKAY.
THERE'S NO, THIS IS, IT'S A FORD, RIGHT? I'M SORRY.
DID IS CORRECTLY WITH A FORD
I MEAN THAT, I'M JUST SAYING THE YEAR WAS WRONG.
IS THERE ANY CHANCE TO MAKE YOUR MODEL? I MEAN, TO MAKE IT WRONG? NO, I, I LOOKED AT THAT, UH, ALICIA GOT THE, THEIR, CUZ IT HAD TO GO THROUGH THEIR FINANCE DEPARTMENT AND THEY SENT IT TODAY AND I, I LOOKED AT IT, SHE SAID, IT SAYS IT'S A 21 AND NOT A 20, WHICH IS A 21 MODEL, BUT IT'S BRAND NEW, BUT IT IS A FORD, SIR.
IT IS A FORD I'M IF IT SAYS ON THERE, IT'S A FOR IT IS.
AND WE WILL MAKE SURE BEFORE WE TAKE POSSESSION OF IT.
WELL, IF IT'S NOT THAT'S OKAY.
BUT I MEAN, IF IT'S A FORD, I JUST, I'M JUST GIVING YOU A HARD NOTE, PRIORITIES, PRIORITIES.
FERENCE I GOT A MOTION TO THE SECOND.
ANY PART OF THE DISCUSSION I WOULD ASK ONLY THE PROCESS.
HOW YOU, YOU GUYS ARE GONNA DEF REFER US TO, YOU'RE GONNA GO GET IT.
SO WE'RE GONNA FLY DOWN AND DRIVE IT BACK.
WE WERE THINKING ABOUT DRIVING OVER THERE AND DRIVING IT BACK EITHER DRIVE THERE AND DRIVE IT BACK.
OR THE PRIOR THAT WAS THE FLIGHT COST ON THE SHORT TURNAROUND IS RIDICULOUS.
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ONES, HOWEVER WE GO UP.GETTING YOU PROBABLY STORM GETTING THERE.
YOU PROBABLY, MAYBE YOU SHOULD LEAVE TOMORROW.
I'M PRETTY SURE YOU'D GET VOLUNTEER TO GO TO JACKSONVILLE.
WELL, UH, I MEAN, LARRY'S GOING FOR SURE.
I KNOW
LARRY AND I WE'LL GET MOTION IN A SECOND PENDING, NO FURTHER DISCUSSION.
I'LL ENTERTAINER VOTE ALL IN FAVOR.
BRING IT UP HERE AND GIVE US ALL A RIDE.
IT WOULD BE RESOLUTION NUMBER 42 DASH 2022.
THE RESOLUTION OF THE CITY OF INCLUDE APPOINTED MEMBERS TO THETE RE DOOR.
I ALWAYS LOVE THIS ONE CITY OF INCLUDE RESOLUTION 42 DASH 2022 APPOINTED MEMBERS TO BUREAU BOARD OF DIRECTORS.
WHEREAS CITY COUNCIL APPOINTS MEMBERS TO THE VISITOR BUREAU BOARD OF DIRECTORS.
AND WHEREAS EACH MEMBER SHALL SERVE FOR A TERM OF TWO YEARS OR UNTIL HIS OR HER SUCCESSORS APPOINTED BY THE CITY COUNCIL, UNLESS SUCH MEMBER HAS BEEN APPOINTED TO FILL AN UNEXPIRED TERM.
IN WHICH CASE, THE TERM OF MEMBERS OF FIRE ON THE EXPLORATION DATE OF THE TERM OF THE MEMBER WHO POSITIONED HE OR SHE WAS APPOINTED TO FILL, WHEREAS POSITION ONE THROUGH SEVEN EXPIRED SEPTEMBER, 2022 AND THE CITY COUNCIL OF THE SAID CITY DESIRE TO FILL THESE POSITIONS.
NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY POLICE, MISSOURI COUNTY, TEXAS FIRST THAT THE CITY COUNCIL OF CITY CREW DOES HEREBY REPOINT.
AND I APOLOGIZE TO EVERYBODY BEFORE I EVER START DIPTY FOR SHOT.
SHIRLEY BUSK, JOYCE CARTER, BOB PRACTICE, PROJECT POTTY LAUREN DARON AND WESLEY COPELAND, WHICH WILL EXPIRE SEPTEMBER 20, 24.
READ FAST APPROVED THE 22ND DAY OF SEPTEMBER, 2022 AD SIGNED BY MYSELF.
AND
I HAVE MOTION TO APPROVE RESOLUTION NUMBER 41 42 DASH 2022.
DO I HAVE A SECOND? I'LL SECOND TAKE ABOUT COUNCILPERSON.
ANY DISCUSSION HEARING NONE I'LL ENTERTAIN A VOTE I'LL FAVOR.
CONSIDERATION OF POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 43 DASH 2022, APPOINTING A REPRESENTATIVE AND AN ALTERNATE TO THE HOUSTON GALVESTON AREA COUNCIL GENERAL ASSEMBLY.
AND IT WOULD BE RESOLUTION NUMBER 43 DASH 2022 DESIGNATION OF REPRESENTATIVE AND ALTERNATE FOR THE HOUSTON GALVESTON AREA COUNCIL 2023 GENERAL ASSEMBLY BE RESIDED BY THE MAYOR CITY COUNCIL CITY CLUE, TEXAS THAT BLANK B AND IS HEREBY DESIGNATED AS THE REPRESENTATIVE TO THE GENERAL ASSEMBLY OF THE HOUSTON GALVESTON AREA COUNCIL FOR THE YEAR 2023.
FURTHER THAT THE OFFICIAL ALTERNATE AUTHORIZED TO SERVE AS THE VOTING REPRESENTATIVE SHOULD HEAR HERE AND ABOVE NAME, REPRESENTATIVE BEING ELIGIBLE, OR SHOULD HE OR SHE RESIGN IS BLANK THAT THE EXECUTIVE DIRECTOR OF THE HOUSTON GALVESTON AREA COUNCIL BE NOTIFIED OF THE DESIGNATION OF THE HEARING ABOVE NAME, REPRESENTATIVE AND ALTERNATE READ, PASS, READ, PASSED, AND ADOPTED THIS 22ND DAY OF SEPTEMBER, 2022.
BE APPROVED BY MYSELF IN THIS TESTED BY ROSE 20 CITY CLERK, TYPICALLY MAYOR AND PROTEINS, SOME OF SO BY COUNCIL CHRIS.
NOW SECOND, SECOND BY COUNCIL PERSON.
ONE ANY FURTHER DISCUSSION, KEEP UP THE GOOD WORK.
I'LL ENTERTAIN A VOTE ALL IN FAVOR.
[V. CLOSED EXECUTIVE SESSION]
NEXT ITEM WOULD BE A CLOSED EXECUTIVE SESSION AS AUTHORIZED BY THE TEXAS OPEN MEETINGS ACT SEX 5, 5, 1 0.071 GOVERNMENT CODE CONSULTATION WITH CITY ATTORNEY CONCERNING PENDING OR CONTEMP LITIGATION SETTLEMENT OFFERS OR OTHER MATTER, WHICH IS DUTY TO THE CITY COUNCIL UNDER THE TEXAS DISCIPLINARY RULES, PROFESSIONAL CONDUCT OF THE STATE BAR OF TEXAS DUE TO CONFLICT WITH CHAPTER 5 51 GOVERNMENT CODE.[01:05:01]
SAID WE WERE RETIRED TO EXECUTIVE SESSION.I WOULD ENTERTAIN A MOTION TO COME BACK INTO OPEN SESSIONS.
SO MOVE, MOVE BY COUNCIL CHRIS COUNCIL BOND ALL IN FAVOR.
ALL NEXT ITEM WOULD BE ACTION TAKEN AS A RESULT OF THE CLOSED EXACT DECEPTION.
THERE WILL BE NO ACTION TAKEN.
[VI. NOTICE/ANNOUNCEMENT OF UPCOMING EVENTS AND MEETINGS]
UH, NEXT ITEM IS NOTICE AND ANNOUNCEMENTS OF CODE EVENTS AND MEETINGS HAVE RECORD COUNCIL MEETING OCTOBER THE 13TH, 2022 7:00 PM.HARVEST FUND FEST WILL BE THURSDAY, OCTOBER THE 27TH, 2022 AT 6:00 PM AT THE MUNICIPAL PARK AND A REGULAR COUNCIL MEETING ON THURSDAY, OCTOBER THE 27TH, 2022 AT 7:00 PM.
DOES THAT PLAY OUT? SAID HOW DOES THAT PLAY OUT? WE GO FROM THE PARK TO HERE.
WE JUST OPEN THAT ONE AND RUN OVER HERE.
YEAH, WE'RE JUST DOING THE DRIVE THROUGH AGAIN.
AND CAN YOU DO THIS AS LONG AS YOU START AFTER THE POSTED TIME, YOU CAN START WHENEVER YOU WANT.
I MEAN, BUT WE DO NEED TO BE OVER THERE FIRST.
AT LEAST GO BY AND SAY HI, MAYBE THEY'LL HAVE SOME CHILI NEXT.
NO, I GOT IT RIGHT HERE BY SECOND BACK OUT.
IT THEY'VE BEEN DOING IT ALL NIGHT.
THE LADIES ARE GONNA HAVE TO FIND OUT WHO GOT THE SECOND.
AND IT'S STILL OPEN FOR DISCUSSION.
MM-HMM FOR DISCUSSION ON, ON YOU DISCUSS IT ON LEAVING WHAT? WE CAN DISCUSS SOMETHING TO HOLD HIM UP.