* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [00:00:06] NOTICE [I. COMMENCEMENT] IS HEREBY GIVEN OF A REGULAR COUNCIL MEETING TO BE HELD ON THURSDAY, MARCH 23RD, 2023 AT 7:00 PM AND THE COUNCIL CHAMBERS INCLUDE CITY HALL LOCATED AT 1 0 8 MAIN STREET, INCLUDE TEXAS 77 531. 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 0.073 DELIBERATIONS ABOUT GIFTS AND DONATIONS. 5 5 1 0.074 PERSONNEL MATTERS. 55 1 0.0 76 DELIBERATION ABOUT SECURITY DEVICES 55 1 0.087. ECONOMIC DEVELOPMENT, 4 1 18 0.1 75.183 DELIBERATIONS ABOUT HOMELAND SECURITY ISSUES AND IT'S AUTHORIZED BY THIS TEXAS TAX CODE, INCLUDING BUT NOT LIMITED TO SECTIONS 3 2 1 0.3022 SALES TAX INFORMATION. THE AGENDA MEETING PACKET AND VIDEO LINK ARE POSTED ON THE CITY'S WEBSITE@WWW.CLTETEXAS.GOV. PUBLIC COMMENTS WILL BE ALLOWED IN PERSON AND WILL OCCUR AT THE BEGINNING OF THE MEETING UNDER THE PUBLIC. COMMENT ITEMS, REGISTERED SPEAKERS, SUBMIT WRITTEN COMMENTS, PLEASE EMAIL CITY CLERK ROSIE PORT ROSIE CLTE TEXAS.GOV. AT LEAST TWO HOURS IN ADVANCE OF THE MEETING. A RECORDING OF THE VI MEETING VIDEO WILL BE MADE AVAILABLE UPON WRITTEN REQUEST TO THE PUBLIC IN ACCORDANCE WITH OPEN MEETINGS ACT MEETING HAS NOW BEEN CALLED TO ORDER. MR. VA, WOULD YOU CARE TO GIVE US THE APPLICATION? THANK YOU. PROVIDING AMEN. JOIN US IN THE PLEDGE. PLEASE PLEDGE THE FLAG OF STATES OF AMERICA REPUBLIC FOR WHICH STANDS? NATION INVISIBLE JUSTICE FOR ALL. THANK YOU. UH, WE NOW HAVE ROLL CALL CAPTAIN SHIFFLET. PRESENT. JEFF. CHRIS PRESENT. ERIC AGUILAR. PRESENT. NICOLE MADDOX. PRESENT. TRAVIS QUINN. PRESENT. FRANCIS VAUGHN. PRESENT. ROSIE. I DON'T SEE ANY SIGNUPS FOR VISITORS. SO WE WILL, THE NEXT ITEM IS SCISSORS. VISITORS COMMENT. WE HAVE NO ONE SIGNED UP, SO WE WILL FOREGO [III. CONSENT AGENDA] THAT ITEM AND MOVE TO THE NEXT ITEM, WHICH IS THE CONSENT AGENDA. AND ITEMS LISTED ON THE CONSENT AGENDA ARE CONSIDERED ROUTINE, ARE GENERALLY ENACTED IN ONE MOTION. THE ACCEPTED OF THIS RULE IS THAT CITY COUNCIL MEMBERS MAY REQUEST ONE OR MORE ITEMS BE REMOVED FROM THE CONSENT AGENDA FOR SEPARATE ACTION. TONIGHT'S AGENDA, UH, CONSENT AGENDA CONSISTS OF MINUTES, REGULAR RECOUNT, REGULAR COUNCIL MEETING AND PUBLIC, UH, JOINT PUBLIC HEARING ON MARCH 9TH, 2023 AT 7:00 PM CONSIDER A MOTION TO APPROVE THE CONSENT AGENDA. I'LL MAKE A MOTION TO APPROVE. HAVE A MOTION BY COUNCILMAN AGUILAR. DO I HAVE A SECOND? I'LL SECOND COUNCIL PERSON. MAD MAKES A SECOND. ANY ITEMS NEED TO BE REMOVED? ANY DISCUSSION? HEARING NONE. I'LL ENTERTAIN AND VOTE. ALL IN FAVOR? AYE. UNANIMOUS. [IV. BUSINESS ITEMS] WE WILL NOW MOVE TO BUSINESS ITEMS. AND ITEM A IS A PROCLAMATION FOR CESAR CHAVEZ DAY. IT WOULD BE CITY OF CLUE PROCLAMATION. WHEREAS CESAR CHAVE DAY ON MARCH 31ST AS A FEDERAL COMMEMORATIVE HOLIDAY CELEBRATED HONOR THE ENDURING LEGACY OF THE AMERICAN LABOR RIGHTS HERO. AND WHEREAS THROUGH HIS LIFE OF WORK AND SERVICE SAYS, OUR CHILD HAS EMPOWERED THOUSANDS TO STAND TOGETHER FOR THEIR RIGHTS AND LEAD OUR NATION TOWARD A MORE EQUITABLE AND JUST SOCIETY. HIS VISIONARY LEADERSHIP INSPIRED A POWERFUL MOVEMENT THAT BURNS BRIGHTLY TO THIS DAY, RALLYING PEOPLE FROM ALL WALKS OF LIFE TO CHAMPION THE DIGNITY OF WORK. WHEREAS MARCH 31ST IS A REMINDER THAT THE POWER OF WORKERS COMING TOGETHER TO BARGAIN FOR A BETTER DEAL IS WHAT BUILT THE AMERICAN MIDDLE CLASS AND MADE POSSIBLE THE AMERICAN DREAM. CHAVEZ TAUGHT US OUR AMBITIONS MUST BE BROUGHT ENOUGH TO INCLUDE THE ASPIRATIONS AND NEEDS OF OTHERS FOR THEIR SAKE AND FOR OUR OWN. AND WHEREAS WE [00:05:01] PUSHED TO BUILD LADDERS OF OPPORTUNITY FOR EVERY AMERICAN TO CLIMB, WE RECALL HIS RESILIENCE THROUGH SETBACKS, HIS REFUSALS TO SCALE BACK HIS DREAMS. NOW THEREFORE, OUR CALVIN CHEVROLET, MAYOR OF THE CITY OF KLUTE, TEXAS, YOU HEREBY PROCLAIM MARCH 31ST, 2023 AS CEZAR CHA DAY IF WITNESSED WE'RE OF HERE IN TO SET MY HAND AND CAUSE THE LITTLE CITY CLTE TO BE AFFIXED THIS 23RD DAY OF MARCH, 2023, JUST SIGNED BY MYSELF AND HAVE TESTED BY ROSE APPOINTMENT CITY CLERK. WE HAVE SOMEONE THAT WANTS TO, WE HAVE, UH, PROCLAMATION HONOR HERE, PRESIDENT OF RESIDENT SUPPORT LULAC. OKAY, EVERYBODY LIKE EACH OTHER. I DON'T LIKE I DOWN THE MICS ARE RECORDING. TWO THREE. THAT WAS FOR LAST WEEK. I WAS GONNA LET IT SLIDE, YOU KNOW. NEXT IT WILL BE CONSIDERATION OF POSSIBLE ACTION TO APPROVE THE FIRST OF TWO READINGS OF RESOLUTION NUMBER 15 DASH 2023 FOR AN ECONOMIC DEVELOPMENT CORPORATION DISBURSEMENT OF FUNDS FOR THE DIXIE SHOPPING CENTER LLC AND DANIEL SAHAN LOCATED AT, I'M GONNA GO AHEAD AND READ THE RESOLUTION TO THIS. I GOT ALL THAT STUFF UNDER THERE AND I DON'T HAVE TO READ IT TWICE. YES, SIR. IT WOULD BE RESOLUTION NUMBER 15 DASH 2023. RESOLUTION OF THE CITY OF FLUTE TEXAS CONTAINING THE PREAMBLE APPROVING ECONOMIC DEVELOPMENT PROJECTS TO BE ENACTED BY THE FLUTE ECONOMIC DEVELOPMENT CORPORATION FOR THE FISCAL YEAR 20 22, 20 23. AND PROVIDED THAT THIS RESOLUTION SHALL TAKE EFFECT AND BE ENFORCED FROM AN AFTER ITS PASSAGE AND ADOPTION, WHEREAS THE CITY OF CLTE, TEXAS IS A HOME RULE CITY AND A HOMEROOM MUNICIPALITY LYING AND SITUATED IN BRAZORIA COUNTY, TEXAS AS DESCRIBED AND DEFINED BY SECTION FIVE, ARTICLE 11 OF THE CONSTITUTION OF TEXAS AND SECTION 1.05 OF THE LOCAL GOVERNMENT CODE OF TEXAS RESPECTIVELY AND WHERE IT CLU ECONOMIC DEVELOPMENT CORPORATION. EDC IS A TYPE B NON-PROFIT ECONOMIC DEVELOPMENT CORPORATION AND AUTHORIZED UNDER TEXAS DEVELOPMENT CORPORATIONS ACT. TITLE 12, SECTION 5 0 1 0.001 ET SEC, SPECIFICALLY CHAPTER 5 0 4 OF SAID ACT. AND WHEREAS THE EDCS SPECIFIC PURPOSE IS TO SUSTAIN ECONOMIC DEVELOPMENT EFFORTS THAT PROVOKE BUSINESS DEVELOPMENT IN THE CITY, WHEREAS THE CITY AND THE EDC HAVE MADE THE SPECIFIC FINDINGS THAT THE EDC MAY PURSUE THE DEVELOPMENT PROJECT SET FORTH BELOW THAT SAID, PROJECTS ARE AUTHORIZED BY THE TEXAS DEVELOPMENT CORPORATION ACT, AND THAT PROJECTS PROMOTE ECONOMIC DEVELOPMENT WITHIN THE CITY OF CLETE THAT SATISFY THE REQUIREMENT OF A SERVING, OF SERVING A PUBLIC PURPOSE. WHEREAS PRIOR TO PASSAGE OF THIS RESOLUTION, THE CITY COUNCIL CONDUCTED TWO PUBLIC HEARINGS OF THIS RESOLUTION, AN OPEN SESSION OF DULY NOTICE AND POSTED COUNCIL MEETINGS AND FURTHER FINES OF A DULY NOTICE AND POSTED PUBLIC HEARING WAS PREVIOUSLY HELD BY THE EDC ON THE PROJECTS CONTAINED HERE. YEAH. NOW THEREFORE BE RESOLVED BY THE CITY COUNCIL OF THE CITY OF KLUTE, TEXAS. FIRST, THE CITY COUNCIL OF CITY OF KLUTE FINDS THAT THE FACTS ARE CITED IN THE PREAMBLE HERE OF ARE TRUE. SECOND, THE CITY COUNCIL OF THE CITY OF KLUTE HEREBY APPROVES THE FOLLOWING ECONOMIC DEVELOPMENT PROJECT FOR THE, FOR THE 20 22 20 23 FISCAL YEAR ECONOMIC DEVELOPMENT PROJECT WITH DAN HAN FOR COMMERCIAL PROPERTIES LOCATED ALONG DIXIE DRIVE. THIRD, THE FUNDS TO FUND THE ABOVE PROJECT HAVE BEEN BUDGETED AND NO FURTHER AUTHORIZATION IS REQUIRED FROM THE CITY COUNCIL FOR THE EDC TO IMPLEMENT THE ABOVE PROJECTS. FOURTH, THIS RESOLUTION SHALL TAKE EFFECT AND BEING ENFORCED FROM AN AFTER IT'S PASSAGE ON ADOPTION AND IT WOULD BE READ AND A PASSED AND ADOPTED AT [00:10:01] ANOTHER MEETING, AND IT WOULD BE SIGNED BY MYSELF, TESTED BY ROSIE PO CITY CLERK AND APPROVED AS THE FORM BY THE CITY ATTORNEY CHRISTOPHER DUNCAN. AND AGAIN, THIS IS A READING ONLY. WE WILL DO A SECOND READING AT OUR NEXT REGULAR, REGULAR SCHEDULED, UH, COUNCIL MEETING. UH, THIS IS THE, UH, INCENTIVIZATION FOR THE RENOVATION OF THE PROPERTIES LOCATED AT IN THE 100 BLOCK OF DIXIE 7 0 2 AND EIGHT 15, UH, WHERE MR. SOHAN IS RE RENOVATING THE PROPERTIES IN ORDER TO GET NEW BUSINESSES IN. HE'S BEEN VERY SUCCESSFUL AT THAT SWISS FARM. WE, WE THINK HE'LL CONTINUE TO BE SUCCESSFUL WITH IT. SO I MAKE A MOTION WE ADOPT THIS RESOLUTION. WELL, DON'T REALLY THINK THAT WE'RE GONNA ADOPT IT AT THIS TIME. WE READ IT AGAIN IN, IN A COUPLE OF WEEKS. YES, SIR. CJ, I JUST HAVE A QUESTION. I DON'T SEE A NUMBER ANYWHERE. IT'LL BE, IT WON'T HAVE TO BE READ AGAIN BEFORE IT CAN BE APPROVED, BUT, UH, I GUESS THE WAY THIS IS WRITTEN, WE ARE APPROVING THE FIRST OF TWO READINGS, SO IF YOU WILLING TO MAKE YOUR MOTION THAT YOU APPROVE THE FIRST READING, I THINK THAT THAT WOULD SUFFICE. YES, SIR. YES, SIR. WE CAN DO THAT. THAT BE WE HAVE A MOTION BY COUNCIL MCQUINN THAT THE FIRST READING OF THIS, UH, RESOLUTION BE APPROVED. DO I HAVE A SECOND? NO, SIR. OH, SECOND BY COUNCIL CHRIS, I SAW HIS RESULTS MOVE FIRST. I THINK I HEARD HIM SPEAKING MR. FURTHER DISCUSSION? YES. QUESTIONS. I WAS JUST, UH, ON THE AGREEMENT. I KNOW ON THE ACTION ITEM IT SAYS, UH, APPROVE THE DISBURSEMENT OF FUNDS, BUT I DON'T SEE ON THE AGREEMENT ANY FUNDS OR, SO WHAT, WHAT WHAT WE'RE DOING IS WE'VE STRUCTURED THIS DEAL THE SAME WAY WE DID WITH THE ONE WITH THE, UH, WILLIAMSBURG SHOPPING CENTER ACROSS THE STREET, WHEREBY HE'S INVESTED APPROXIMATELY $570,000 IN RENOVATION AND WE'RE GONNA MATCH UP TO 50% OF THAT COST THROUGH SALES TAX REBATE OVER FIVE YEARS. SO WE DON'T KNOW THE SPECIFIC AMOUNT YET. THE BENCHMARK WOULD BE SET AT THE DECEMBER 31ST, 2019, UH, SALES TAX RECEIPT, WHICH IS ABOUT $57,700. SO ANYTHING ABOVE THAT FOR THE NEXT PERIOD OF FIVE YEARS, WE'LL BE SPLIT 50 50 OVER THAT TIME TO HELP HIM RECOUP HIS COSTS. IT'S KIND OF STRUCTURED THE SAME WAY THE KROGER DEAL, RIGHT. AND EVERYTHING. YEP. THAT WAS THE ONLY QUESTION I HAD. YEAH. OKAY. SO IN SHORT, OUR TOTAL EXPOSURE WOULD BE ABOUT 270, BUT I DON'T KNOW THAT BASED ON THE, WELL, I CAN'T SAY THAT OUT LOUD. SO WE DON'T KNOW WHAT THE EXACT FIG DISPERSAL WILL BE UNTIL OUT AT THE, WHEN WE TRUE UP AT THE END OF THE YEAR. CORRECT. OKAY. YEAH. OKAY. ANY OTHER QUESTIONS, COMMENTS? HAVE A MOTION TO THE SECOND THAT THE FIRST READING IS APPROVED. ALL IN FAVOR? AYE. UNANIMOUS FIRST READING HAS BEEN APPROVED. NEXT ITEM WOULD BE CONSIDERATION OF POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 16 20 23 ACCEPTING THE KENMORE MASTERS LONGFORD LLC ANNUAL FINANCIAL REPORT. UH, CAN YOU READ THE RESOLUTION? SURE. BEFORE HE STARTS , DO I NEED TO SIT BACK DOWN? HE, DO YOU WANT TO TUNE YOUR UKULELE WHILE HE'S NO, I'M JUST KIDDING. YEAH. YEAH. IT WOULD BE RESOLUTION NUMBER 16 DASH 2023. THE RESOLUTION OF CITY COUNCIL CITY INCLUDE TEXAS ACCEPTING THE FISCAL YEAR 20 21, 20 22 AUDIT FINANCIAL REPORT PREPARED BY KENMAR MASTERS IN LONGFORD LLC. WHEREAS THE CITY IS REQUIRED BY STATE LAW OF VARIOUS CONTRACTS TO HAVE AN INDEPENDENT AUDIT AND FINANCIAL REPORT PREPARED ANNUALLY. WHEREAS THE CITY HAS PREVIOUSLY ENGAGED THE CERTIFIED PUBLIC ACCOUNTING FIRM, KENMAR MASTERS IN LONGFORD, LLC, KML, TO CONDUCT THAT AUDIT. WHEREAS KML HAS COMPLETED THEIR WORK ON THE AUDIT AND CERTIFIED AN ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR 20 21, 20 23, 2 22, WHICH ENDED ON SEPTEMBER THE 30TH, 2022. NOW THEREFORE BE RESOLVED THAT THE CITY COUNCIL OF THE CITY, CLTE, TEXAS HEREBY ACCEPTS THE FISCAL YEAR 20 21, 20 22 AUDIT AND CERTIFIED ANNUAL FINANCIAL REPORT. AS PREPARED AND PRESENTED BY CANER MASTERS IN MUNFORD, LLC, YOU WILL BE PASSED AND ADOPTED. THIS 23RD DAY OF MARCH, 2023 IS APPROVED BY MYSELF AND ASSIGNED BY, UH, TESTED BY ROSIE APPOINTMENT CITY CLERK NOW. OKAY. THANK YOU. WE'RE GOING TO TURN IT OVER TO MR. CADEN HEAD FOR OUR PRESENTATION. ALL RIGHT. MY NAME'S KEVIN CADEN, HEAD. I'M A PARTNER WITH K AND L AND WE DO APPRECIATE, AGAIN, THE OPPORTUNITY TO SERVE AS THE, THE CITY'S OUTSIDE AUDITORS. I'VE CHARACTERIZED THIS YEAR'S AUDIT AS, UH, EVERYTHING DID GO ACCORDING TO PLAN, ACCORDING TO THE AUDIT PLAN. NOTHING THAT WE HAD TO VEER OFF FROM THAT. WE'LL TALK JUST FOR A FEW MINUTES ABOUT THE FINANCIAL STATEMENTS AND, AND WHAT YOU'LL SEE IN THERE IS IT'S VERY CONSISTENT. THERE'S NO NEW DEBT THAT WAS ISSUED DURING THIS THAT FISCAL YEAR. UM, AGAIN, JUST E EVERYTHING UH, IN THERE IS VERY CONSISTENT FROM YEAR TO [00:15:01] YEAR. WE KNOW THAT YEARS GO BY FAST AND, BUT THERE'S STILL A LOT OF EFFORT AND WORK AND, AND ACTIVITIES THAT GO ON. AND WE'RE JUST HERE TO REPORT THAT THE CONTROLS THAT UNDERLIE ALL THAT ARE IN PLACE AND ARE FUNCTIONING PROPERLY. AND SO WE HAVE NO AUDIT FINDINGS, ANYTHING THAT WE NEED TO, UH, DISCUSS IN THAT REGARD. THERE ARE A FEW THINGS THAT THEY NEED TO POINT OUT TO YOU THAT ARE REQUIRED COMMUNICATION. UM, IF YOU'LL TAKE THE BLUE FINANCIAL STATEMENT DOCUMENT, AND IF YOU'LL FLIP BEHIND THE FIRST TAB, IT SAYS FINANCIAL SECTION. AND RIGHT BEHIND THAT IS OUR INDEPENDENT AUDITOR'S REPORT. THIS IS OUR REPORT ON THE FINANCIAL STATEMENTS. IT TELLS THE READER OF THE FINANCIAL STATEMENTS THAT WE HAVE AUDITED THE CITY OF CLETE FINANCIAL STATEMENTS. THE FIRST PARAGRAPH IS THE OPINION. AND THAT WORDING BASICALLY, OR THE SECOND PARAGRAPH, UM, TELLS THE READER THAT, UM, WE HAVE AUDITED THE FINANCIAL STATEMENTS AND THERE'S NOTHING ELSE YOU NEED TO KNOW. JUST GO INTO THE FINANCIAL STATEMENTS. THEY'RE MATERIALLY CORRECT. THERE'S NO, EXCEPT FOR EXCEPTIONS OR ANYTHING LIKE THAT. SO THIS IS WHAT'S CALLED AN UNMODIFIED OPINION OR SOMETIMES REFERRED TO AS A CLEAN OPINION. SO AGAIN, THAT GOES ALONG WITH NO AUDIT FINDINGS OR, OR ANY OTHER ISSUES. THERE'S A LOT OF LANGUAGE. NOW THIS THING GOES ON FOR ABOUT FOUR PAGES. IT USED TO BE ABOUT ONE AND A HALF. THE, THE AUDIT AND ACCOUNTING INDUSTRY HAS CONTINUED TO DRIVE TOWARDS MAKING SURE THAT IT'S CLEAR THAT THERE'S INDEPENDENCE BETWEEN THE AUDITOR AND THE AUDITEE. AND THAT'S WHAT IT TAKES 'EM FOUR PAGES TO SAY. OKAY, IF YOU'LL GO TO PAGE 11 REAL QUICK, THIS STARTS A PART OF THE FINANCIAL STATEMENTS CALLED MANAGEMENT'S DISCUSSION ANALYSIS. IT PRECEDES THE FINANCIAL STATEMENTS. AND THEN THE FOURTH TAB UNDER FINANCIAL HIGHLIGHTS. I'LL JUST POINT OUT KIND OF WHERE WE ARE IN TERMS OF FINANCIAL POSITION, UH, FINANCIAL WHEREWITHAL OF THE CITY. IT, IT SHOWS THAT THE UNASSIGNED FUND BALANCE THAT IS FUND BALANCE BASICALLY IN THE GENERAL FUND THAT'S AVAILABLE TO BE SPENT. UM, IT'S NOT ALREADY ENCUMBERED OR, UM, OR RESTRICTED FOR SOME OTHER PURPOSE IS 5.1 MILLION, WHICH IS ABOUT 40% OF ONE YEAR'S GENERAL FUND BUDGET. SO YOU CAN THINK THAT IN TERMS OF WE'VE GOT A RESERVE IN THERE FOR ABOUT FIVE MONTHS. AND THE QUESTION ALWAYS IS, IS THAT GOOD OR BAD? AND, AND IT'S, UM, THAT'S REALLY NOT AN ANSWER THAT'S GOOD OR BAD. UM, ONE WOULD TYPICALLY SAY THAT IF YOU'RE BELOW THREE MONTHS RESERVE, YOU PROBABLY NEED TO BE WORKING ON RESERVE. AND WHEN YOU GET OVER 12 MONTHS OR 18 MONTHS OF RESERVE, YOU'RE PROBABLY OUGHT WORKING ON USING SOME OF YOUR RESERVE AS A CITY GOVERNMENT. SO YOU'RE, YOU'RE IN THE, IN THE SPOT THAT THE CITY HAS BEEN IN FOR YEARS, WHICH IS A VERY GOOD POSITION IN TERMS OF YOUR FUND BALANCE, UM, AND RESERVE. BASICALLY, THERE ARE, UH, A NUMBER OF THINGS THAT ARE IN THIS MANAGEMENT DISCUSSION ANALYSIS SECTION THAT WE WON'T GO INTO. UH, BUT THERE ARE COMPARATIVE FINANCIAL STATEMENTS WHERE YOU CAN SEE THE, BOTH THE GOVERNMENTAL FUNDS AND THE ENTERPRISE FUND, WATER AND SEWER BASICALLY, AND COMPARATIVE YEAR DATA. UM, IN THAT FINANCIAL STATEMENT, AS I SAID, THERE WERE, UH, REALLY NOT A LOT OF DIFFERENCES BETWEEN YEARS FINANCIALLY, UH, IN TERMS OF THE ACTUAL FINANCIAL RESULTS WITH NO NEW DEBT ADDED. UH, WE ALWAYS HAVE THIS PENSION LIABILITY THAT GOES UP AND DOWN THAT, UH, CHANGE JUST VARIES SLIGHTLY. WE DID HAVE A NEW ACCOUNTING STANDARD THAT WAS REQUIRED TO BE IMPLEMENTED AROUND LEASES, UH, TO WHERE WE HAVE TO PUT THE, THE VALUE OF A LEASE ON THE BALANCE SHEET AS AN ASSET AND WITH AN OFFSETTING, UH, DEFERRED INFLOW. AND THAT WAS MINIMAL. SO THAT, THAT REALLY DIDN'T IMPACT. UM, I, I'M LOOKING AT ONE OF OUR PORT COMMISSIONERS HERE. THEY, THEY DO A LOT OF LEASING OF MAJOR PROJECT, UH, MAJOR FACILITIES. THAT WAS A HUGE STANDARD IMPLEMENTATION FOR THEM AND THEIR, THEIR STAFF. BUT THAT WAS A MINIMAL IMPACT ON THE CITY OF KLUTE. UM, SO A COUPLE OTHER THINGS THAT I WOULD POINT OUT IS THAT THERE WERE NO BUDGET ISSUES. UM, THERE'S A SECTION BACK HERE WHERE IT COMPARES ACTUAL TO BUDGET, AND AGAIN, THERE WERE NO BUDGET ISSUES THERE. IF YOU WILL GO BEHIND THE VERY LAST TAB, WHICH IS A FEDERAL AWARD SECTION, THE CITY DID REQUIRE WHAT'S CALLED A SINGLE AUDIT THIS YEAR TO TEST THE COMPLIANCE WITH THE CORONAVIRUS RELIEF ACT. UM, AND SO THERE ARE A COUPLE OF REPORTS THAT ARE FROM OUR FIRM IN THIS SECTION. THE FIRST ONE IS OUR REPORT OVER INTERNAL CONTROL, OVER FINANCIAL REPORTING. IN THIS LETTER, WE WOULD TELL YOU IF WE FOUND SOMETHING THAT WAS SIGNIFICANT OR MATERIAL THAT IS A WEAKNESS IN YOUR FINANCIAL REPORTING CONTROLS. SO WHAT THAT MEANS IS IF WE CAME INTO THE AUDIT AND WE TOOK YOUR, YOUR BASIC, UH, BOOKS AND ALL YOUR BALANCES IN YOUR BOOKS IN IN GENERAL LEDGER, AND WE TRIED TO PUT THOSE IN FINANCIAL STATEMENTS WITHOUT, WITHOUT DOING ANYTHING TO THEM THAT THEY MAY BE NOT CORRECT, THAT WOULD CREATE A SIGNIFICANT OR MATERIAL SIGNIFICANT DEFICIENCY OR MATERIAL WEAKNESS. WE DID NOT FIND ANY OF THOSE. SO THESE, THIS IS A CLEAN LETTER. AND THEN THE SECOND LETTER IS THE ACTUAL OPINION ON OUR AUDIT OF THE FEDERAL PROGRAM, IN THIS CASE THE CORONAVIRUS RELIEF FUND PROGRAM. AND IT IS A CLEAN OPINION. IT SAYS THAT IN OUR OPINION, THE CITY COMPLIED IN [00:20:01] ALL MATERIAL RESPECTS WITH THE COMPLIANCE REQUIREMENTS OF THAT GRANT. AND YOU CAN GO TO PAGE A FEW PAGES BACK TO PAGE 1 38. AND YOU CAN SEE THAT GRANT AT THE VERY TOP, UM, 1.2 MILLION TOTAL FUNDS THAT CAME THROUGH THAT GRANT THAT WERE SPENT DURING THE FISCAL YEAR, 9 30 22, UM, WHICH IS PREDOMINANTLY MOST OF THE, UH, FEDERAL FUNDS THAT WERE RECEIVED BY THE CITY. AND THE VERY BACK OF THIS IS OUR TWO LETTERS. UH, THE FIRST ONE IS A CLIENT ADVISORY COMMENT LETTER THAT JUST PROVIDES A FEW POINTS OF, UH, TO NOTE TO MANAGEMENT, UH, NOTHING SIGNIFICANT THERE. AND THEN THE BIGGER, LONGER LETTER IS WHAT I CALL THE ENRON LETTER. AND THIS IS WHERE WE'RE DESCRIBING TO YOU, UH, SPECIFIC THINGS THAT WERE PRESCRIBED CATEGORIES OF COMMUNICATION. IF SOMETHING WERE TO HAVE GONE WRONG, THEN IT WOULD BEEN HAVE TO BE COMMUNICATED IN THIS LETTER. WE ALWAYS LIKE TO SAY THAT IF SOMETHING WOULD'VE RISEN TO THE LEVEL OF, OF AN ISSUE IN THIS LETTER, THEN SOMEONE, IF NOT ALL THE COUNCIL WOULD'VE KNOWN THAT BEFORE. I'M STANDING UP HERE SAYING, HEY, WE, WE'VE GOT AN ISSUE IN HERE, SO THIS IS A CLEAN LETTER AS WELL. UM, THAT'S THE END RESULT. ANOTHER GOOD YEAR FROM A FINANCIAL CONTROL STANDPOINT WITH VERY CONSISTENT FINANCIAL STATEMENTS. IF THERE'S ANY QUESTIONS, I'D BE HAPPY TO ANSWER THOSE NOW OR AT A LATER TIME. KEVIN, I JUST WANT TO THANK LEEK. I KNOW SHE'S, UH, WRITING OFF INTO THE SUNSET AFTER THIS. YES. AND, UH, WE APPRECIATE ALL OF HER EFFORTS AND HER WORK. UH, SHE'S BEEN A PLEASURE TO WORK WITH AND WE LOOK FORWARD. APPRECIATE TO, UH, I'LL LET HER KNOW. SHE LET, SHE HAS THE PLEASURE OF LETTING ME COME DO ALL SPEAKING. SHE DOES ALL WORK. , THERE YOU GO. WELL, SHE, SHE'S BEEN A PLEASURE TO WORK WITH AND WE THANK YOU. APPRECIATE THAT. NO QUESTIONS, NO COMMENTS. ALL RIGHT. REALLY QUICK, JUST MAKE SURE THAT I UNDERSTAND. SO WHEN WE'RE DOING THE BUDGET FOR THE CITY, LIKE OVER THE SUMMERTIME WE WERE DOING BUDGET STUFF. WE DETERMINE WHAT WE'RE GONNA, WHATEVER WE'RE SPENDING ON AND EVERYTHING, AND THEY'RE COMING BEHIND US AND GOING, THIS IS HOW IT REALLY TURNED OUT. THESE ARE THE FINAL REPORTS, RIGHT? THAT'S CORRECT. THEY'RE, SO, THEIR JOB IS TO BASICALLY TRUE UP AND MAKE SURE THAT WE'RE NOT USING FUNDS THAT ARE OUTSIDE OF ANYTHING ON FUND. LIKE IF WE BUDGETED TO BUY WIDGETS AND THEN WE TURNED AROUND AND BOUGHT SPROCKETS INSTEAD, THAT WOULD SHOW UP. OR IF WE OVER EXPENDED A LINE ITEM OR IMPROPERLY USING MONEY OR ACCOUNT FOUND BALANCES, WERE ALLOWED TO GO TO A LOW POINT. ALL OF THOSE THINGS WILL BE FOUND OUT. OR IF OUR CONTROLS, IF WE WERE RUNNING WILLY-NILLY AROUND AND DOING STUFF WITHOUT ANY OVERSIGHT, THAT'S THEIR JOB IS TO FIND THAT AND IDENTIFY THAT. REPORT THAT TO YOU. OKAY. JUST MAKING SURE YOU DIDN'T SLIP A 50 IN YOUR POCKET . MAKE SURE IF IT'S CODED AS 9 99, IT'S CHARGED A 9 99 . OKAY. ANY OTHER QUESTIONS? COMMENTS? HAVE A MOTION DONE A SECOND THAT WE ADOPT RESOLUTION NUMBER 16 DASH 2023 ACCEPTING THE ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDING 9 30 20 22 BY KEN MASTERS AND LUSTERS LLC. UH, I'LL MAKE THE MOTION THAT WE ALREADY HAD THE MOTION. WHO? THE MOTION? YOU JUST READ IT? NO, I JUST READ IT. YES SIR. EXCUSE ME. SO MR. AGUILAR, I KNEW I'D DONE OR I KNEW I'D ALREADY DONE SOMETHING. OKAY. I HAVE A MOTION BY COUNCILMAN AGUILAR THAT WE ACCEPT RESOLUTION NUMBER 16 DASH 2023 AS READ AND I'LL SECOND AND SECONDED BY COUNCILPERSON BOND. WE'RE SUPPOSED TO GET THE MOTION IN THE SECOND BEFORE WE DISCUSS, BUT NO, YOU CAN DO IF YOU DON'T. OKAY. YOU HAD A PRESENTATION. I CAN DO WHATEVER I WANT, HUH? YES SIR. YOU'RE IN CHARGE OF THE MEETING. ALL RIGHT, NOW I HAVE A MOTION TO A SECOND PENDING ANY NO FURTHER DISCUSSION, I'LL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. AYE. UNANIMOUS. SORRY ABOUT THAT. GOTTA LOOK AHEAD, ALTHOUGH GOT AHEAD OF MYSELF AND BEHIND MYSELF AT THE SAME TIME, NEXT ITEM WILL BE TO DISCUSS AND CONSIDER ACTION TO ADOPT RESOLUTION NUMBER 17 DASH 2023. A RESOLUTION OF CITY COUNCIL, THE CITY OF KLUTE, TEXAS APPROVING ENGAGEMENT LETTER AND AUTHORIZING THE MAYOR'S EXECUTION OF SAID LETTER RETAINING KEN MEMBER MASTERS IN LONGFORD, LLC FOR THE PURPOSE OF COMPLETING THIS CITY'S FISCAL YEAR 20 22, 20 23 FINANCIAL AUDIT AT CERTIFIED ANNUAL FINANCIAL REPORT. WHEREAS THE CITY IS REQUIRED BY STATE LAW OF VARIOUS CONTRACTS TO HAVE AN INDEPENDENT AND FINANCIAL REPORT PREPARED ANNUALLY. AND WHEREAS THE CITY HAS PREVIOUSLY ENGAGED CERTIFIED PUBLIC ACCOUNTING FIRM ER MASTERS IN LONGFORD LLC, KML TO CONDUCT SAIDED AUDITS AND WHERE KML HAS PROVIDED EXCELLENT PROFESSIONAL SERVICE TO [00:25:01] THE CITY PREVIOUSLY. WHEREAS KML HAS PROVIDED THE ATTACHED LETTER OF ENGAGEMENT FOR THE PROVISION OF AUDIT SERVICES FOR THE NEXT FISCAL YEAR. NOW THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL CITY INCLUDES TEXAS, HEREBY APPROVES A LETTER OF ENGAGEMENT FOR AUDIT AND CERTIFIED ANNUAL FINANCIAL REPORT PREPARATION SERVICES BY CANER MASTERS IN LONGFORD LLC. FURTHER, THAT THE MAYOR IS AUTHORIZED TO EXECUTE. SAID LETTER PASSED AND ADOPTED THIS 23RD DAY OF MARCH, 2023. IT WILL BE APPROVED BY MYSELF AND I TESTED BY ROSE APPOINTMENT CITY PARK. AGAIN, THIS IS THEIR STANDARD AUDIT, UH, ENGAGEMENT LETTER. UH, WE'VE BEEN SIGNING THEM FOR 17 YEARS. I KNOW. SO GUESS WE'RE DOING 18. SO, AND WENT GEAR TO MAKE A MOTION TO APPROVE RESOLUTION NUMBER 17 DASH 2023. MR. BY COUNCILMAN CHRIS, SECONDED BY COUNCILMAN QUINN. DISCUSSION, THEY DO A GOOD JOB. MM-HMM. . YES THEY DID. THEY'VE HAD THEIR WORK CUT OUT FOR 'EM BEFORE TOO. OUR PEOPLE WAS DOING A GOOD JOB TOO. I WAS GONNA SAY CHRIS IS, YEAH. YEAH. WHEN, WHEN OUR PEOPLE DO A GOOD JOB, IT MAKES THEIR JOB A LOT EASIER. . SO I WILL ATTEST TO THAT. OKAY. Y'ALL SEEN SOME STUFF? OKAY, I HAVE A MOTION IN A SECOND PENDING. NO FURTHER DISCUSSION, I'LL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. AYE. AYE. UNANIMOUS. NEXT ITEM WOULD BE CONSIDERATION OF POSSIBLE TO ACTION TO ADOPT RESOLUTION NUMBER 18 DASH 2023 APPROVING A CONTRACT FOR THE BRAZORIA COUNTY HISPANIC CHAMBER FOR THEIR GIVE BACK FESTIVAL TO BE HELD APRIL 21ST TO THROUGH THE 23RD, 2023 AT THE MUNICIPAL PARK. AND IT WOULD BE RESOLUTION NUMBER 18 DASH 2023. THE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KLUTE, TEXAS APPROVING BRAZORIA COUNTY HISPANIC CHAMBER OF COMMERCE FOR USE OF THE CLETE MUNICIPAL PARK FOR THE GIVE BACK FESTIVAL TO BE HOSTED THE WEEKEND OF APRIL 21ST THROUGH THE 23RD, 2023. WHEREAS BRAZORIA COUNTY HISPANIC CHAMBER OF COMMERCE B C HCC HAS REQUESTED THE USE OF THE CLU MUNICIPAL PARK AND CERTAIN STAFFING EQUIPMENT IN ORDER TO HOST THE GIVE BACK FESTIVAL UNDERWRITTEN BY THE GENEROSITY OF INCLUDES OWN JD SILVA SBAR. AND AS THE CITY AND BC EIGHT CC HAVE AGREED TO A PLAN FOR SECURITY, SANITATION AND MAINTENANCE IN THE FORM OF AN AGREEMENT HERE INTO A TAX NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF CITY OF CLTE, TEXAS, THAT THE AGREEMENT BETWEEN THE CITY AND THE MISSOURI COUNTY HISPANIC CHAMBER FOR THE UTILIZATION OF CLTE MUNICIPAL PARK FACILITIES AND CERTAIN STAFFING EQUIPMENT RELATED TO HOSTING THE GIVE BACK FESTIVAL ON APRIL 21ST THROUGH THE 23RD. 2023 READ PASSED AND ADOPTED THIS 23RD DAY OF MARCH AND THEN BE SIGNED BY MYSELF AND TESTED BY ROSE APPOINTMENT CITY CLERK. WILL, DO YOU WANNA SPEAK OR REPRESENTATIVE? THE ONLY QUESTION I HAD IS, UH, ON THE CITY PERSONNEL I WAS READING THROUGH HERE AND UM, IS THAT WITH OFFICERS INCLUDED OR THE OFFICERS ARE? NO, SIR. NO, CAUSE THE, THE SECURITY WILL BE, HEY, JUST LIKE A, A NORMAL SECOND JOB. OKAY. THEY WON'T BE, WE WON'T, WE'RE NOT USING ON DUTY. SO WE'LL HAVE OUR NORMAL RIGHT CHIEF, CORRECT. NORMAL, NORMAL PATROLS IN TOWN AND THEN IT'LL BE OFF DUTY AND OUTSIDE OFFICERS WORKING SECURITY. YEAH. BUT THE SECURITY WILL BE PROVIDED BY THE CHAMBER. AND WHAT, WHAT, SO WHAT DOES THE $18,000, SO THAT IS, THAT'S YOUR, UH, SANITATION PERSONNEL, YOUR PARKS PERSONNEL, YOUR MAINTENANCE PERSONNEL THAT WILL BE ON SITE. UH, WE'LL BE RUNNING TRUCKS BECAUSE OF THE WAY THAT THE, WE ESTIMATE THE GARBAGE IS GONNA FLOW. MM-HMM. , WE'RE PROBABLY GONNA HAVE TO TAKE AT LEAST TWO, MAYBE THREE TRIPS BACK TO THE, TO THE DUMP. SO THAT'S WHAT THAT REPRESENTS. AND DID PEACE OFFICERS HAVE A DIFFERENT ARRANGEMENT FOR EXTRA JOBS? CITY STAFF DOES NOT. ORIGINALLY WE HAD SUGGESTED A DIRECT CONTRACT BETWEEN THE CHAMBER AND THE EMPLOYEES, BUT IN ORDER TO AVAIL OURSELVES OF THE LIABILITY COVERAGE FOR THE EQUIPMENT AND THE WORKER'S COMP COVERAGE FOR THE EMPLOYEES BEING, UH, BEING ON SITE, WE OPTED TO HAVE THEM CONTRACT THROUGH THE CITY THIS WAY. I HAVE A QUESTION. UM, ON THE PARKING, [00:30:01] DO WE HAVE CLEARANCE ON THAT? IT SAYS THEY WILL, I GUESS SO FAR. SET THAT UP AND HAVE WE HEARD, WE, WE'VE GOTTEN THE CONFIRMATION FROM THE SCHOOL DISTRICT AND THAT THEY'VE REACHED OUT TO AND MADE ARRANGEMENTS WITH. OKAY. I'VE NOT HEARD ANYTHING FROM CHRIS BAPTIST YET. I DON'T KNOW IF THEY'VE MADE THAT CONNECTION YET OR NOT. OKAY. THAT WAS MY QUESTION. SO THANK YOU SIR. THAT WAS GONNA BE MY QUESTION ABOUT THE PARKING, SO THANK YOU. THAT DEFINITELY GONNA BE AN ISSUE WITH A YEAH. THOUSAND WITH THOUSAND OF PEOPLE DOWN THERE, THOSE CARS? YEAH. YEAH. OKAY. NOW WILL THAT, I DON'T KNOW HOW TO ASK YOU OTHER THAN BE BLUNT, THE PARKING THAT THEY NORMALLY FENCE OFF IN OTHER AREAS FOR THE MOSQUITO FESTIVAL, WILL THAT BE AN INDIVIDUAL BASIS THAT, I GUESS IF PEOPLE DECIDE TO DO THAT, IF FOLKS WANT TO DO THAT, THAT'S THAT THERE'S, YOU'RE TALKING ABOUT PEOPLE ON, ON THEIR OWN PERSONAL PROPERTY. WELL, I KNOW THERE WAS, BUT I'M ASSUMING BSD, THAT'LL INCLUDE ALL OF THAT PARKING OVER THERE, THAT LITTLE CORNER THERE. I SEE DIFFERENT PEOPLE SET UP AT DIFFERENT FUNCTIONS. YEAH, BUT TECHNICALLY THAT'S SCHOOL PROPERTY TOO THOUGH. I BELIEVE THAT THE, UH, PROJECT GRADUATION OKAY. IS GONNA HANDLE ALL THAT AND TAKE THE DONATIONS AND SO THAT'LL ALL BE FUNNELED BACK INTO THE, INTO THE SCHOOLS FROM THE PARKING OVER THERE. OKAY, GOOD. CUZ I FEEL LIKE THAT'LL BE THE MAIN THINGS WHERE TO PUT PEOPLE. THAT'S THE BIGGEST, THAT'S THE BIGGEST BATCH OF CONCRETE OVER THERE, . OKAY. THANK ANY OTHER QUESTIONS? COMMENTS? MM. NO. I HAVE A MOTION TO APPROVE REVOLUTION 18 DASH 2023. I MAKE A MOTION. MOTION MADE BY COUNCIL PERSON. MADS, DO I HAVE A SECOND? I'LL SECOND. COUNCIL PERSON VA FURTHER DISCUSSION. HEARING NONE, I'LL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. UNANIMOUS. NEXT ITEM WOULD BE CONSIDERATION OF POSSIBLE ACTION TO ADOPT RESOLUTION NUMBER 19 DASH 2023 SUSPENDING FOR 45 DAYS. THE EFFECTIVE DATE PROPOSED BY CENTER POINT ENERGY RESOURCES DBA CENTER, POUR ENERGY IN TEXAS, CENTERPOINT ENERGY, TEXAS GAS, IT, TEXAS, TEXAS COAST DIVISION. AND ITS APPLICATION FILED ON OR ABOUT MARCH OF SECOND, 2023 PURSUANT TO SECTION 1 0 4 0.301 OF THE GAS UTILITY REGULATION ACT, TC UC. THIS IS AGAIN OUR NORMAL, ANYTIME THEY BRING FORWARD OR GROUP OR AURA CASE. UH, AS PART OF OUR PARTICIPATION IN THAT THE TEXAS, UH, TEXAS, UH, GULF COAST, UH, UTILITY ALLIANCE, WE, UH, HAVE BEEN ASKED BY OUR COUNCIL TO ASK FOR THIS 45 DAY STAY SO THEY CAN STUDY THE, UH, GRIP ORDER A LITTLE BIT FURTHER BEFORE IT GETS TO PUC. SO BASICALLY IT'S UH, A RESERVATION OF RIGHTS AS IT WERE TO LISTEN AND FIGURE OUT EXACTLY WHAT THE REQUEST IS FOR FIRE CUSTOMERS A LITTLE BIT MORE TIME. SO AT THIS TIME, CENTER POINT IS, IS ASKING FOR AN INCREASE YES MA'AM. IN THE COST AND, BUT WE DON'T KNOW EXACTLY WHAT IT IS FOR OR TO DO 45 DAYS TO. BASICALLY THE STATE LAW ALLOWS US 45 DAYS TO STUDY THEIR RATE, ORDER THEIR RATE REQUEST, AND THEN MAKE A STATEMENT YAY OR NAY WHEN IT GOES TO THE PUC FOR FINAL APPROVAL. AND SO WE'RE ASKING FOR AN ADDITIONAL, BASICALLY THEY PROVIDED IT, WE'RE ASKING FOR THE 45 DAY STAY SO WE CAN STUDY, OUR ATTORNEYS CAN STUDY IT FURTHER BEFORE WE MAKE COMMENT TO THE, TO THE PUC. YEAH. TYPICALLY WE'RE PART OF A COALITION OF, OF CITIES WITH A ATTORNEY AND CENTERPOINT HAS VARIOUS CONTRACTS WITH DIFFERENT CITIES AND IT TAKES A LITTLE WHILE FOR THEM TO DIGEST THE, THE DIFFERENT ASPECTS OF EACH CONTRACT. AND EVERY YEAR IT'S THE SAME THING. YEAH, THAT'S THE SAME THING BUT 7,800 PAGES OF LANGUAGE. SO IT'S QUITE A BIT. YEAH. I WOULD CONSIDER A MOTION TO APPROVE REVOLUTION NUMBER 19 DASH 2023. CUZ I PRESUME IT'S RECOMMENDED BY STAFF. THAT IS CORRECT. YES SIR. MAKE THAT MOTION. HAVE A MOTION BY COUNCIL MCQUINN. DO I HAVE A SECOND? I'LL SEC. COUNCILMAN AGUILAR MAKE A SECOND. ANY FURTHER DISCUSSION? HEARING NONE, I'LL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. AYE. UNANIMOUS. THANK YOU. NEXT ITEM WOULD BE CONSIDERATION OF POSSIBLE ACCESS TO ADOPT RESOLUTION NUMBER 20 20 23 AUTHORIZING THE CITY MANAGER TO REQUEST AN INCREASE IN THE TELECOMMUNICATION RIGHT OF WAY ACCESS DEFAULT RATES FOR 2023 BY 4.2883% OR [00:35:01] 7 CENTS PER RESIDENT AND 23 CENTS PER NON-RESIDENTIAL ACCOUNT, WHICH IS CALCULATED BY THE STATE TO ACCOUNT FOR INCREASES IN THE CONSUMER PRICE INDEX. AND IT WOULD BE RESOLUTION NUMBER 2023 OF RESOLUTION OF THE CITY COUNCIL OF CITY OF INCLUDE TEXAS AUTHORIZING THE MAYOR, I MEAN AUTHORIZED THE CITY MANAGER TO REQUEST AN INCREASE TO THE TELECOMMUNICATIONS RIGHT OF WAY ACCESS DEFAULT RATES BY FOR 2023 BY 4.2883 R OH 7 CENTS PER RESIDENT AND 23 CENTS PER NON-RESIDENTIAL DECLINE OF CALCULATED BY THE STATE TEXAS PUBLIC UTILITIES COMMISSION TO ACCOUNT FOR INCREASE IN THE CONSUMER PRICE INDEX. WHEREAS THE STATE OF TEXAS HAS DELEGATED THE AUTHORITY FOR SETTING FEES FOR ACCESS TO JURISDICTIONAL RIGHT OF WAYS TO THE TEXAS PUBLIC UTILITIES COMMISSION PUC. WHEREAS PUC MAY INCREASE THAT FEE BY USUALLY UTILIZING A FORMULA BASED ON THE CONSUMER PRICE INDEX WEIGHTED BY CUSTOMER TYPE. WHEREAS THE CITY HAS NOT RECENTLY REQUESTED AN INCREASE IN THE RATE. AND WHEREAS THE CITY IS NOW DESIRES OF INCREASING THE RATE TO ALL OFFSET THE COST ASSOCIATED WITH TELECOMMUNICATION PROVIDERS USING AND WORKING IN THE CITY'S RIGHT OF WAYS. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL AND THE CITY OF CLTE, TEXAS, THAT THE CITY MANAGER IS HEREBY AUTHORIZED TO REQUEST AN INCREASE IN THE TELECOMMUNICATION RIGHT OF WAY ACCESS DEFAULT RATES FOR 2023 BY 4.2883% OR 7 CENTS PER RESIDENCE AT 23 CENTS PER NON-RESIDENTIAL ACCOUNT AS CALCULATED BY THE STATE OF TEXAS PUBLIC UTILITY COMMISSION TO BE READ PAST AND ADOPTED. THIS 23 THIRD DAY OF MARCH, 2023, IT BE SIGNED BY MYSELF AND TEST BY AT CITY CLERK. SO PROBABLY THREE OR FOUR SESSIONS AGO, THE STATE DENUDED OUR POWER TO REGULATE WHAT THOSE FEES WOULD BE FOR THE USE OF RIGHTS AWAY BY TELECOMMUNICATIONS PROVIDERS. THEY GAVE THEM A CHOICE BETWEEN EITHER A FRANCHISE FEE OR A UTILIZATION FEE. THIS IS IF THEY'RE CHARGED THE UTILIZATION FEE. I CAN TELL YOU THAT MOST OF THE TELECOMS HAVE OPTED TO GO WITH THIS CUZ IT'S LOWER THAN A FRANCHISE FEE WHERE OUR FRANCHISE EXPIRES, THOSE WILL TAIL OFF AND THEN THIS, THIS FEE WILL REPLACE IT. AND SO, UH, WE HAVE NOT OPTED TO INCREASE THIS FEE AT ANY TIME, BUT WE'VE HAD A HECK OF A LOT OF WORK DONE BY TELECOMMUNICATION PROVIDERS IN OUR RIGHTS AWAY THAT HAVE DONE A HECK OF A LOT OF DAMAGE. UH, AND EVEN THOUGH THIS IS A PATH THROUGH, THIS IS ONE WAY FOR US TO KIND OF RECAPTURE SOME OF THE, SOME OF THE WORK THAT WE'VE HAD TO DO TO REPAIR THAT WORK. NOW, COUNCIL CAN TAILOR THIS. IF THEY DON'T WANT TO INCREASE THE RESIDENTS AND OR THE NON-RESIDENT, THEY CAN TELL US NO, WE'LL, WE'LL FOLLOW WHICHEVER LEAD Y'ALL WANT US TO TAKE. WE FELT LIKE IT WAS OF DUE DILIGENCE FOR THE CITY AT THIS TIME TO REQUEST THE INCREASE, GIVEN THE INCREASE IN OUR COST IN OFFSETTING THESE, OFFSETTING THE WORK AND THE RIGHTS OF WAY AND THE USE UTILIZATION OF THE RIGHTS OF WAY. SO IS THIS LIKE AT AND T DROPPING THEIR FIBER AT AND T DROPPING THEIR FIBER? COMCAST, WHEN THEY COME DO WORK? UH, THEY WERE TEARING UP ALL PHENO SCOPE, LIGHT WAVE, ANY, ANY WORK THAT THEY DO IN OUR RIGHTS AWAY, THIS IS THE FEE TO OFFSET THEIR, THE, THAT COST BURDEN TO THE CITY. I HAVE A QUESTION AND A WORD SHOULD EXPLAIN IT, BUT WHAT WOULD BE CONSIDERED NON, THAT'S WHAT I WOULD ASK. THAT'S, UH, THAT WOULD BE YOUR INDUSTRIAL, YOUR SCHOOL'S INSTITUTIONAL, ANY HOSPITAL, CLINIC, ANYTHING THAT DOESN'T CONSTITUTE. BUT SO TO I GUESS TO FURTHER ANSWER YOUR QUESTION, CO COMMERCIAL, BASIC COMMERCIAL, BASICALLY YES SIR. COMMERCIAL, INDUSTRIAL, UH, OR INSTITUTIONAL, UH, AND THEN AGRICULTURAL FOR SOME REASON IS, IS ALSO COUNTED. SO, BUT YOUR HOMES, RENT, HOMES AND APARTMENTS WOULD BE UNDER THE 7 CENT RATE PER UNIT. THE OTHER WOULD APPLY TO ANY BUSINESS OR INDUSTRY OR, UH, INSTITUTION. AM I READING IT CORRECTLY THAT THE INCREASE WOULD ONLY, THAT WE WOULD ONLY SEE AN INCREASE IN THE, IN THE BUDGET OF $1,800? THAT'S MY ESTIMATION. YES SIR. THAT DOESN'T COVER MUCH. IT DOES NOT. A COUPLE OF LINE PATCHES, SIR. A COUPLE OF LINE PATCHES. YEAH, MAYBE . AND THAT'S WHY WE FELT LIKE WE'RE AT A PLACE WE KEEP FALLING FURTHER AND FURTHER BEHIND BY NOT ASKING FOR THE INCREASE. IT'S PROBABLY TIME TO START CATCHING UP A LITTLE BIT. SO IS THIS ENOUGH? NO, SIR. BUT WE CAN'T GO ANY HIGHER THAN THIS. OH, OKAY. DIDN'T SOUND LIKE ENOUGH. NO, SIR. I DON'T UNDERSTAND WHO'S PAYING WHO HERE? . WELL, ESSENTIALLY COMCAST WILL CHARGE THE CUSTOMER. THE CUSTOMER WILL PAY COMCAST, COMCAST WILL PAY THE STATE, AND THEN THE STATE WILL COMPENSATE US. SO IT'S AN INCREASE IN THE, IT'D BE AN INCREASE TO THAT. DID THE HOMEOWNER, THEY THEY WOULD PAY MORE ON THEIR MONTHLY FEE MOST LIKELY, UNLESS COMCAST OR AT AND T OR WHATEVER TELECOM THAT'S USING THE THE RIGHT OF WAY WANTS TO, UH, GENEROUSLY PROVIDE THAT, THAT UPGRADE. WAS THERE ANY WAY THAT WE CAN GET THE COMPANY TO PAY? NO, SIR. UH, WE, I BUT FOR ALL INTENTS AND PURPOSES, OUR AUTHORITY UNDER THE FRANCHISES HAVE BEEN COMPLETELY DENUDED. IN THE OLD DAYS, IF YOU HAD A COMPLAINT AGAINST COMCAST, YOU [00:40:01] COULD COME HERE TO CITY COUNCIL. WE'D CALL THEIR LOCAL REP UP, HAVE HIM IN, WE'D READ 'EM THE RIOT ACT AND THEY'D TRY AND MAKE IT RIGHT. THE STATE'S TAKEN THAT AUTHORITY AWAY. UH, THEY'VE INVESTED IT INTO PUC. AND SO NOW IF YOU HAVE A COMPLAINT, WE HAVE A A, A CERTAIN HOMEOWNER WHO LIVES IN SOUTH LAKE BARBARA, WHO HAS A, A CABLE FROM A CABLE COMPANY THAT'S BEEN LAYING ACROSS HER YARD NOW I THINK FOR 13, 14 MONTHS. SHE'S MADE THE COMPLAINT, NOTHING'S BEEN DONE. AND WE CAN'T REALLY DO ANYTHING TO ENFORCEMENT BECAUSE IT'S IN AN EASEMENT. SHE CAN'T USE THAT PORTION OF HER YARD BECAUSE SHE DOESN'T WANNA HAVE TO CUT THE CABLE. SO I HAVE, I HAVE THE, THEIR CABLE LAYING ON MY MOTHER'S FENCE NOW FOR OVER TWO YEARS. YES, SIR. MM-HMM. , YOU HAVE TO MOVE IT TO GO OUT HER BACK GAME. YES, SIR. AND THEY WON'T FIX IT. NO, THEY WILL NOT. I TOLD HER I COULD TAKE A LAWNMOWER THEN FIX IT. YEAH, THAT'S PROBABLY TRUE. SO IF A PERSON DOESN'T HAVE COMCAST, THIS DOESN'T AFFECT THEM. IT'S COMCAST 18. ANYBODY, ANYBODY THAT USES ANYBODY THAT'S REGULATED BY THE PUC. YES. SO EVEN IF YOU DON'T HAVE IT, BUT YOUR NEIGHBOR HAS IT AND THE CABLE NEEDS TO GO ACROSS YOUR YARD TO HOOK IT UP TO LIKE A CABLE BOX OR I VOTE AGAIN? YEAH. BASICALLY WHAT BASICALLY THE, THE COMPANY IS PAYING THE BILL, BUT THEY ARE CHARGING THE CUSTOMER THE BILL. THE COMPANY PAYS THE STATE, THE STATE REIMBURSES US. THEY'RE JUST PASSING IT ON. AND, AND THE, THAT'S HOW IT WORKS. AND THE CABLE COMPANY OR WHOEVER THE TELECOMMUNICATION COMPANY IS, WHATEVER THEY, WHATEVER THEY DEEM IS THE, IS THE PRICE THAT YOU PAY FOR THAT SERVICE. THEY A THEY ATTACH IT TO YOUR BILL AND, AND SEND IT TO THE STATE. SO IS THIS A MONTHLY FEE? WOULD THE, WOULD IT BE YES, I KNOW 7 CENTS PER RESIDENT. THAT'S PER MONTH. YES MA'AM. YEAH, IT'D BE 94 OUNCE OR WHATEVER. MARTHA. THEY CAN JUST NOT USE THEIR SERVICES AND THEY DON'T HAVE TO PAY THE FEES. I MEAN, WHEN DO I I DON'T HAVE 'EM. SO WHEN DO I PAY THIS THROUGH? WHAT? WELL, IT, IT DEPENDS ON WHAT SERVICE YOU HAVE. YOU HAVE A, YOU'VE GOT INTERNET, CORRECT? HUH? YOU HAVE AN INTERNET CONNECTION? YEAH, I HAVE AN INTERNET. SO YOU'RE PAYING A FEE ATTACHED TO YOUR INTERNET CONNECTION TIED TO OH, SO THAT'S PART OF THAT? YES, SIR. RIGHT NOW THAT'S, UH, ATTRIBUTABLE TO ABOUT 61% OF THAT FEE OR 61 CENTS. THE ONLY PROBLEM I HAVE IS THAT I, I KNOW THAT IT'S 7 CENTS PER CUSTOMER RIGHT NOW, BUT, UH, IT'S, IT'S GONNA KEEP GOING UP AND UP AND UP AND WE'RE GONNA APPROVE YEAR AFTER YEAR AFTER YEAR. AND I MEAN, BUT THIS IS THE, I DON'T REMEMBER WE'RE EVER DOING THIS. WE'RE COVERING THOSE. RIGHT. SO THIS IS, THIS IS, THIS IS THE FIRST TIME IN THE FIVE YEARS I'VE BEEN HERE, I'VE PRESENTED THIS REQUEST TO YOU. AND IT'S JUST BECAUSE WE FELT LIKE WE HAD SO MUCH WORK DONE THIS PAST YEAR. SAY I'VE BEEN HERE A LONG TIME, I DON'T REMEMBER IT EVER. IT'S AT YOUR OPTION TO, TO APPROVE OR DENY SO, OR TO MODIFY IF YOU WANT TO. SO YOU NEED A MOTION? YES, SIR. WELL, I MAKE A MOTION ACCEPT SEPARATE RESOLUTION. 2023 IS WRITTEN. SO THE 18 BY EVERY BY COUNCIL. CHRIS, DO I HAVE A SECOND? IT'S JUST THE COST OF DOING T IT IS THE, SO, OKAY, THIS FEE IT IS BEING TAKEN AND WE, IT WOULD COME BACK TO THE CITY AS THE $1,800 OR WHATEVER. WHAT DO WE USE IT FOR? WE, WELL THAT GOES BACK, IS IT JUST FOR THE GENERAL FUND OR GENERAL FUND? AND THAT GOES BACK CLEAN UP THEIR MESS AFTER THEY JACK OFF ALL OUR YARDS. . TYPICALLY IT'S TO OFFSET THE COST ASSOCIATED WITH THEM JACKING UP SOMETHING IN OUR RIGHT OF WAY. IF THEY, IF THEY BUST A WATER LINE, WE GOTTA GO DIG A HOLE OF PATCH. SO WE'RE ACTUALLY CHARGING THE COMPANIES THE FACT THAT THEY PASS IT ON OR HOW THEY PASS IT ON. WE HAVE NO CONTROL OVER IT. RIGHT. NO, I GET THAT. THAT IDEALLY WE'RE, WE'RE, THAT SOUNDS WE'RE WE'RE CHARGING THE COMPANIES TO DO THE DAMAGE. BUT LIKE IN OTHER BUSINESSES THERE'S CHANCE THEY'RE GONNA PASS IT ON. YEAH, TECHNICALLY JUST LIKE WE HAVE TO PASS ON OUR COST. BUT IF THEY WERE TO, LIKE EXAMPLE, HE GAVE BREAK A WATER MAIN, I MEAN THEY CAN'T JUST SAY, OH SORRY, BROKE THE WATER. MAIN, HERE'S YOUR 7 CENTS PER CUSTOMER. THEY TO FIX THAT. RIGHT. WELL IN THEORY, YES MA'AM. BUT I WOULD, WE'VE ENCOUNTERED SOME FUN. UH, BUT BEFORE WE CONTINUE THE CONVERSATION, IT WOULD BE BEST IF WE HAD A SECOND SO WE COULD HOLD THE DISCUSSION. I'LL SECOND. THANK YOU MA'AM. OKAY, SECOND. OKAY, NOW, MS. MADDOX. SORRY, . SORRY, I WAS ASKING QUESTIONS IN, IN, IN ANSWER TO YOUR QUESTION. IN THEORY, YES, WE CAN USUALLY GO BACK AND BACK CHARGE THE SUBCONTRACTOR. SOMETIMES YOU GET CAUGHT HOLDING THE ROPE IF THE SUBCONTRACT DOESN'T HAVE A LICENSE, DOESN'T HAVE AN APPROPRIATE BUSINESS ADDRESS AND THEN YOU HAVE TO GO TRACK DOWN AND FIGHT WITH AT AND T OR COMCAST. I WILL SAY COMCAST HAS BEEN VERY GOOD ABOUT BEING RESPONSIVE TO US. WE MET WITH HIM YESTERDAY. UH, JOHN, WAS IT AT AND T THAT WE HAD TO HAVE THE REVIVAL MEETING HAD TO DO, WHAT WAS IT? AT AND T WE HAD THE REVIVAL MEETING WITH TWO YEARS AGO OR THREE YEARS AGO. I THINK IT WAS ATT YEAH. CENTER POINTS CREW DAMAGED [00:45:01] MY AIR CONDITIONER AT MY HOUSE. YES. AND AFTER SIX MONTHS AND ATTORNEY SENT 'EM A LETTER. MM-HMM. , THEY TOLD ME THEY WASN'T FIXING IT. I HAD TO FIX IT MYSELF. WHEN THEY RUN ALL THE NEW GAS LINES UP TO THE HOUSE MM-HMM. , THEY HIT MY AIR CONDITIONER WITH THEIR TRACK OFF. I MEAN, THEY'RE LITTLE MINI EX. I'M SORRY. OH MY GOSH. NEIGHBOR SAW IT, TOOK A PICTURE OF IT. I HAD TO FIX IT MYSELF. SO THE GOOD NEWS ON THE GAS PIPELINE OR THE GAS FRANCHISE, WE STILL HAVE A FRANCHISE AGREEMENT WHERE THEY PAY US. WE JUST HAVE NO REAL REGULATORY OR RATE AS ANY AUTHORITY ANYMORE. SO THIS IS KIND OF LIKE THE WATER, THE HAVING TO INCREASE THE WATER. IT'S JUST, IT'S OUT OF OUR HANDS. IT'S JUST THE PRICE HAS GONE UP. COSTS GO UP AND, AND HONESTLY THIS IS A MODEST, WHEN YOU LOOK AT THE CPI, THEY CALIBRATED ON A, THEY TAKE A SNAPSHOT AT ONE POINT DURING THE YEAR. SO IT'S NOT THE FULL 8.2% THAT EVERYBODY EXPERIENCED ON BOTH THINGS. ON MOST THINGS. EXCUSE ME. YEAH. C I P FOR 2022 WAS EIGHT SOMETHING. WAS IT? YES SIR. FOR WE'RE ASKING FOR ABOUT HALF OF WHAT THE CIP P WAS ORIGINALLY AND WE'RE ASKING FOR IT. THERE'S NO GUARANTEE YOU'RE GONNA GET IT. THAT'S CORRECT. WELL, NO. UH, THE PUC. YEAH. WELL THE PUC HAS, ONCE WE'VE ELECTED TO DO IT, THEY WILL APPLY IT. OKAY. THIS IS ONE THAT WE, THEY HAVE TO GIVE US. SO FURTHER DISCUSSION, HAVE A MOTION AND A SECOND THAT WE ADOPT RESOLUTION. 20 20 23. I'LL ENTERTAIN VOTE. ALL IN FAVOR? AYE. AYE. WE GOT 1, 2, 3 DID GO. I'LL VOTE FOR NICOLE AND I SAID YES. YES. OKAY. YES. FOUR. FOUR ALL AGAINST NAY. ONE OPPOS. [V. CLOSED EXECUTIVE SESSION - 551.087] NEXT ITEM WILL BE CLOSES. EXECUTIVE SESSION. 5 5 1 0.087 CLOSES. EXECUTIVE SESSION IS AUTHORIZED BY THE TEXAS GOVERNMENT, TEXAS OPEN MEETINGS ACT. SECTION 55 1 0.07. ONE GOVERNOR CODE CONSULTATION WITH AN ATTORNEY. ATTORNEY PENDING OR CONTEMPLATED LITIGATION SETTLEMENT OFFICER OR OTHER MATTERS IN WHICH DUTY OF THE ATTORNEY CITY COUNCIL UNDER THE TEXAS DISCIPLINARY PROFESSIONAL CONDUCT FOR STATE BAR TEXAS, SECURELY CONVICTED FOR CHAPTER 5 51 OF THE TEXAS DOUBLE CO. I SEE THAT OUR CITY ATTORNEY AIN'T HERE. HE WILL BE HERE IN FIVE MINUTES. FIVE MINUTES. OKAY. WELL WE WILL TAKE A FIVE MINUTE BREAK BEFORE WE GO TO EXECUTIVE SENATE. WOO. THE CHAIRS CODE . WE ON SHARKS LEAVE. SHERIFF, WE'RE READY. I'LL MAKE A MOTION TO, I WOULD CONSIDER A MOTION TO RETURN TO OPEN SESSION MADE BY ACCOUNTABLE AGUILAR OR SECOND BY COUNCIL. RIGHT. SOMETHING LIKE THAT. THAT'S ITEM ON THE AGENDA IS TAKEN AS A RESULT OF THE PROPOSED OBJECTIVE SESSIONS. THERE IS ACTUALLY NO ACTION TAKEN THIS EVENING. [VI. NOTICE/ANNOUNCEMENT OF UPCOMING EVENTS AND MEETINGS] WE'LL MOVE TO NOTICE OF ANNOUNCEMENTS AND UPCOMING EVENTS. UH, FRIDAY, APRIL 7TH WILL BE GOOD. FRIDAY AT CITY HALL AND ON NINE ESSENTIAL SERVICES WILL BE CLOSED. REGULAR COUNCIL MEETING APRIL THE 13TH AT SEVEN. THE BA FESTIVAL IS SATURDAY, APRIL THE 15TH, STARTING AT NOON AT THE CLARION AT THE COLLEGE REGULAR COUNCIL MEETING. THURSDAY, APRIL THE 23RD. 2023 AT 7:00 PM AND THERE IS A GIVE BACK FESTIVAL ON THE 21ST THROUGH 23RD OF APRIL. AND I DON'T KNOW EXACTLY WHAT THE HOURS ARE, BUT THERE PRETTY LONG. I WOULD IMAGINE ONE OF THOSE NIGHTS . YEAH. THINKS PROBABLY TO MIDNIGHT BOTH NIGHTS, RIGHT? FIVE TO MIDNIGHT. YES. I HAVE NO IDEA. YEAH, BUT THEY'RE, THEY'RE PRETTY LONG. I KNOW THAT. AND THEN THIS IS CURRENTLY IN THE AGREEMENT ON MAY THE SIXTH. SATURDAY FROM SEVEN TO SEVEN WILL BE THE GENERAL ELECTIONS AND CHARTER AMEND ELECTIONS FOR THE CITY OF INCLUDE. AND HIGHER POLLING PLACE WILL BE THE INCLUDED EVENT. YES. NEXT ITEM IS ADJOURN. SO MOVE WHO? TRAVIS. TRAVIS AND ERIC. TRAVIS? NO. NO. TRAVIS. I [00:50:01] CAN'T MAKE MOTION. I'M THREE MOTIONS. . I WOULD BE THE STAR. TRAVIS WRESTL. THE, I'LL GO WITH SENIORITY. SENIORITY. OKAY. MR. TRAVIS. TRAVIS MAKES MOTION A SECOND? YES SIR. PENDING NO DISCUSSION. I'LL ENTERTAIN A VOTE. ALL IN FAVOR? AYE. AYE. ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.