Nov 09, 2021 BAYTOWN FIRE CONTROL, PREVENTION, AND EMS DISTRICT

[00:00:19]

DO

[a. Consider a resolution approving an amendment to the Baytown Fire Control, Prevention, and Emergency Medical Services District's Fiscal Year 2021-2022 Budget, in order to transfer monies from Contingency/New Initiatives (20701-99001) to Capital (20701-80001) for the purchase of equipment for the new Engine 3.]

I'LL TURN IT OVER TO THE YOUNG MAN WITH THE MUSTACHE .

IT'LL BE GONE TOMORROW.

.

SO, UH, THIS IS A BUDGET TRANSFER, $55,000.

UM, SO THAT WE CAN PURCHASE EQUIPMENT FOR ENGINE THREE.

THAT'S THE ENGINE THAT'S GONNA APPEAR IN APPROXIMATELY APRIL.

UM, WE HAD, WE TALKED ABOUT REQUIRING NEW UNITS AND KEEPING 'EM STAFF OR KEEPING NEW EQUIP WITH NEW EQUIPMENT SO WE CAN HAVE THE RESERVES ALSO HAVE EQUIPMENT AND WE DON'T HAVE TO KEEP SWITCHING THINGS.

SO THAT'S WHAT THIS REQUEST IS FOR.

AND, UM, THAT'S IT.

ANY QUESTIONS? ALRIGHT.

UH, DO YOU HAVE A MOTION? MOTION TO APPROVE? MOTION TO APPROVE.

I'LL SECOND.

SECOND.

QUESTIONS OR DISCUSSION? ALL THOSE IN FAVOR SAY AYE.

AYE.

OPPOSED? LIKE, SIGN.

MOTION CARRIED UNANIM.

NEXT, WE'LL CONSIDER

[b. Consider a resolution authorizing an Interlocal Agreement for the Funding of Two (2) Pierce Velocity Pumper Trucks and Equipment for Engine 3.]

SO, UM, WE HAD, UH, DONE THE PRESENTATION IN THE LAST MEETING TO TALK ABOUT THE POSSIBILITY OF DOING A LEASE PURCHASE FOR TWO FIRE ENGINES.

AND AFTER HAVING FURTHER DISCUSSIONS, UM, WE DECIDED TO, TO GO THROUGH A BETTER, WHAT I THINK IS A MUCH BETTER PROCESS AND A MUCH BETTER PROCESS.

AND, AND MAYBE, UM, VICTOR CAN EXPLAIN IT.

THANKS.

SO MAD PRESIDENT, IF YOU REMEMBER AT OUR LAST MEETING, WE, WE TALKED ABOUT THE POSSIBILITY OF LEASING.

UH, PLEASE.

UH, COUPLE OF TRUCKS.

UH, WHEN WE LOOKED INTO IT, WE REALIZED IT WAS GONNA BECOME A LITTLE BIT MORE COMPLICATED THAN, UH, THAN WE WANTED TO DEAL WITH.

AND THE INTEREST RATE WAS ONLY EVER GOING TO GO UP.

IT'S STILL ONLY LESS THAN 2%.

BUT, UH, WE LOOKED AT IT AND WE THOUGHT THAT A BETTER WAY TO FINANCE IT WOULD BE ESSENTIALLY FOR THE GENERAL FUND TO PURCHASE THE TRUCKS AND LEND THE MONEY TO THE FIRE CONTROL DISTRICT.

AND THEN THE DISTRICT PAYS IT BACK OVER THE NEXT THREE YEARS TO THE GENERAL FUND.

SO WE KEEP IT ALL WITHIN THE FAMILY, SO TO SPEAK.

UM, WE SAVE THE, THE BORROWING COSTS.

IT DOESN'T ACTUALLY COUNT AGAINST OUR CREDIT OUTSIDE.

UH, SO AS THE CHIEF SAID, IT'S, IT'S A BETTER DEAL ALL AROUND, I WOULD SUGGEST.

SO THAT'S WHAT WE'RE PROPOSING.

WE CHARGE THEM INTEREST , AS I SAID, I I, WE HAD THIS DISCUSSION SINCE WE LEFT THE AQUATICS FUND.

UH, THE MONEY, THEY, UH, PAID IT INTEREST FREE, I THINK WOULD BE, UH, AN OLD, AN OLD CONSCIENCE.

I COULDN'T CHARGE THE, UH, CURRENT MARKET INTEREST RATE.

AND GIVEN THE DURATION OF THIS TYPE OF DEBT ACT, THE, UH, INTEREST WOULD BE NEGLIGIBLE ANYWAY.

UH, ARE ARE YOU SURE WE'RE A GOOD RISK? WELL PAY BACK.

IT'S REALLY INTERESTING YOU SAY THAT.

WE HAVE ACTUALLY, AND THIS COMES FROM MY COLLEAGUE OVER HERE, UH, WE'VE ACTUALLY MADE A SIMILAR ARRANGEMENT WITH OUR AQUATICS FUND, BUT THAT WAS DURING THE TIME WHEN WE, WE WERE IN KIND OF A CRISIS WITH PIRATE SPAY DUE TO THE COVID IMPACTS.

SO, UH, WE, WE HAVE A CURRENT AND, AND ACTUALLY AQUATICS IS, IS BEEN ABLE TO, AND IT'S GONNA CONTINUE TO MAKE A PAYMENT BACK, BACK ON THAT, THAT LOAN.

THIS IS A LITTLE BIT DIFFERENT IN THAT WE'RE ALSO ABLE TO KEEP THIS DEBT OFF OF OUR BOOKS SO IT'S NOT CLASSIFIED AS DEBT.

AND THAT, THAT HELPS ALL OF US.

DO YOU HAVE A MOTION? MOTION? HAVE MOTION? I MAKE MOTION.

DO I HAVE A SECOND? A SECOND.

ALL RIGHT.

QUESTIONS OR DISCUSSIONS? WE FEEL LIKE THIS IS THE BEST ROUTE TO GO FOR FINANCING, RIGHT? FOR, FOR THE ITEMS THAT WE GOT? YEAH.

THIS, THIS WON'T COST US REALLY ANYTHING IN THE FINANCE PROCESS.

AND WE'LL SAVE A LOT OF MONEY.

ONE IN THE PREPAYMENT OF THE UNITS.

WE SAVE ABOUT $50,000 IN PREPAYMENTS AND WE WON'T SEE, WE WON'T GET HIT WITH THE COST INCREASE OF MATERIALS THAT'S COMING UP BEFORE THE END OF THE YEAR.

WE WAIT UNTIL THE NEXT YEAR, THERE'LL BE ANOTHER ABOUT 4% INCREASE.

SO WE'RE CATCHING, WE'RE, WE'RE, WE'RE SAVING I THINK A LOT OF MONEY BY DOING THIS.

NOW WE WORK IN THE ENVIRONMENT THAT WE ARE WITH THESE COMMODITY PRICES AND, AND, AND LET'S NOT, LET'S ALSO MENTION THAT SUPPLY CHAIN, UH, ISSUES WHERE THINGS COULD BE DELAYED, YOU KNOW? AND I THINK IT'S ONLY GONNA GET WORSE BEFORE IT GETS BETTER.

I HATE TO SAY THAT PHRASE.

I CAN KEEP THAT, BUT I DO THINK WE HAVE TO BE REALISTIC THAT WE STRIKE WHILE THE IRON'S HOT.

WE, WE GET THE ENGINES THAT WE KNOW WE ALREADY NEED.

WE SAVE THE MONEY.

AND WE'RE VERY FORTUNATE TO BE IN A CIRCUMSTANCE AS A CITY WHERE WE CAN DO THIS.

A LOT OF CITIES CAN'T DO THIS, BUT WE CAN DO THIS.

THERE'S ACTUALLY A LOT LESS RISK TO DOING IT THIS, THIS WAY, I THINK.

[00:05:03]

AYE.

OPPOSED? LIKE, SO.

MOTION CARRIED UNANIMOUSLY.

UM, THAT'S VERY EXCITING.

NOW WE

[a. The next Baytown Fire Control, Prevention, and Emergency Medical Services District meeting is scheduled for Tuesday, January 18, 2022, at 4:30 P.M. in the Baytown Conference Room located at City Hall, 2401 Market Street, Baytown, Texas.]

WELL, I JUST HAVE GOBS TO SHARE WITH YOU TODAY.

WE, UH, WE'RE CONTINUING TO MARCH ON TO OUR, UH, TO OUR UH, UH, RIBBON CUTTING, HOPEFULLY SOON.

GETTING CLOSER.

WE'RE BE CLOSER.

.

SO CLOSE.

SO CLOSE.

DID THE CONTRACTOR SHOW UP FOR THE, DO THE CEMENT WORK? NOT YET, BUT WHEN HE DOES, IT'S ONLY GONNA BE TWO WEEKS WILL ONLY BE TWO WEEKS, TWO WEEKS AFTER HE GETS HERE.

SO WE'RE, WE'RE SAVING THE BEST FOR LESS.

BUT ANYWAY, UM, WE'RE LOOKING FORWARD TO THAT.

WE ARE ACTUALLY GONNA HOLD A GROUNDBREAKING FOR OUR NEW PUBLIC SAFETY FACILITY, WHICH IS FIRE AND POLICE.

AND THAT'S GOING TO BE NEXT MONDAY AT 3:00 PM AT THE CURRENT CAMPUS.

SO YOU ARE ALL INVITED TO THAT.

YOU SHOULD BE GETTING A LITTLE E INVITE.

WE DON'T PRINT INVITATIONS ANYMORE, BUT, UH, YOU SHOULD BE GETTING THAT.

SO PLEASE BE WITH US TO CELEBRATE THIS.

UH, IT'S KIND OF A LOW KEY THING.

OF COURSE, WE'RE SAVING ALL OF THE FESTIVITIES FOR THE GRAND OPENING, WHICH WILL BE 18 MONTHS AFTER THAT.

BUT WE'RE VERY EXCITED TO MOVE INTO PHASE ONE OF THAT $66 MILLION PROJECT.

WOW.

IT'S THE MOST SIGNIFICANT PROJECT THE CITY'S EVER ENDEAVORED TO ACCOMPLISH BY ITSELF.

SO, AND OTHER THAN THAT REPORT, UH, WE WILL SEE YOU AGAIN ON JANUARY THE 18TH.

WELL, OF COURSE WE'LL SEE YOU BEFORE THEN, BUT HAVE A VERY MERRY CHRISTMAS.

SOUNDS FUNNY TO SAY THAT, HUH? YES.

WELL, IT'S HAPPY NEW YEAR.

THE ADVERTISING'S ALREADY OUT THERE.

THAT'S RIGHT.

UH, SINCE WE DON'T HAVE ANY OTHER BUSINESS ON OUR AGENDA, I'D ENTERTAIN A MOTION TO ADJOURN.

I'LL MAKE A MOTION.

ADJOURN.

SECOND.

MOTION A SECOND.

ALL IN FAVOR? AYE.

ALRIGHT, THANK YOU ALL.