* 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. [ CITY OF BAYTOWN NOTICE OF MEETING CITY COUNCIL REGULAR MEETING THURSDAY, JULY 27, 2023 6:30 P.M. COUNCIL CHAMBER, CITY HALL 2401 MARKET STREET, BAYTOWN, TEXAS 77520 For those members of the public that cannot or do not wish to be physically present at the meeting, they will be able to participate through two-way communications. For video conferencing, use the following website: www.zoom.com, click on "join a meeting" on the top right-hand corner, and input the following Meeting ID: 849 4791 3850. For telephone conferencing, please use the following toll-free number: 1-888-788-0099, Meeting ID: 849 4791 3850. The meeting can also be viewed on the local Baytown Channel 16, which can be accessed at: https://baytown.org/1/home. Any person, who is participating through video/teleconferencing and is interested in speaking on any item on the agenda, must submit his/her request via email to the City Clerk at cityclerk@baytown.org. The request must include the speaker's name, address, and phone number that will be used if teleconferencing as well as the agenda item number. The request must be received prior to the posted time of the meeting. The agenda packet is accessible to the public in both HTML and PDF formats at the following link: Agenda Packet For more information or questions concerning the teleconference, please contact the City Clerk’s Office at (281) 420-6504. AGENDA CALL TO ORDER AND ANNOUNCEMENT OF QUORUM PLEDGE AND INVOCATION Council Member Kenrick Griffith, District No. 3 ] [00:00:06] IT'S THURSDAY, JULY 27TH, THE 6:42 PM WE ARE IN BAYTOWN CITY HALL CHAMBERS. AND, UH, THERE IS A QUORUM THAT WE DO. UH, WE WILL BE LED IN OUR PLEDGE IFICATION BY COUNCIL MEMBER KEN GRIFFIN OF DISTRICT NUMBER THREE. I PLEDGE ALLEGIANCE ALL TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL HONOR, TEXAS FLAG, I PLEDGE ALLEGIANCE TO THE TEXAS ONE STATE UNDER GOD, ONE AND INDIVISIBLE. DRY YOUR HEADS. DEAR HEAVENLY FATHER, I JUST WANNA THANK YOU. THANK YOU FOR KEEPING ALL OF US, ALL YOUR STAFF, ALL THE STAFF HERE, THE, UH, FIRST RESPONDERS AND THE EMPLOYEES THAT WORK FOR THE CITY. SAFE, SAFE AS THEY GO ABOUT THEIR JOBS SAFE IN THIS HEAT FROM THE, THE PRESSING HEAT OF THE DOG, DAYS OF SUMMERS. SOME PEOPLE PUT IT. DEAR HEAVENLY FATHER, I JUST PRAY THAT AS WE DELIBERATE TODAY, THAT YOU WILL SANCTIFY THE DECISIONS WE MAKE HERE WITH HUMILITY, GRACE, AND MOST IMPORTANTLY FATHER AGAPE LOVE. AND I THANK YOU FOR ALL THESE THINGS IN JESUS, YOUR PRECIOUS NAME. WE PLAY PRAY. AMEN. AMEN. COUNCIL, EXCUSE ME. ALRIGHT, SO WE HAVE, UH, SOME MINUTES FOR APPROVAL. UH, LOOKS LIKE [a. Consider approving the minutes of the City Council Work Session and Regular Meeting held on June 8, 2023.] THERE'S ITEMS ONE A AND B. UH, FIRST ONE, CONSIDER, UH, APPROVAL OF MINUTES OF THE WORK SESSION, REGULAR MEETING ON JUNE 8TH. AND THE SECOND ONE IS, UH, WORK SESSION, REGULAR MEETING ON JUNE 22ND. I'LL ENTERTAIN A MOTION FOR ITEMS ONE A, UH, AS FOR ONE ACTION, MOTION TO APPROVE. SECOND. MOTION TO SECOND. ANY QUESTIONS OR COMMENTS OR AB EXTENSIONS? NOT ALL THOSE IN FAVOR OF THE MINUTES AS PRESENTED, PLEASE SAY, AYE. AYE. THOSE OPPOSED. [a. Recognize City of Baytown Employees for their Years of Service.] WE MOVE ON TO ITEM TWO A'S RECOGNITION OF CITY OF BAYTOWN EMPLOYEES FOR THE YEARS OF SERVICE. MR. LOPEZ, MARIA OSA, MUNICIPAL COURT CLERK, WAYNE SPEAKS, WASTEWATER OPERATOR THREE WITH PUBLIC WORKS AND ENGINEERING. LAUREN PARIS, FIREFIGHTER WITH FIRE, FREDA GREEN MUNICIPAL COURT CLERK. YES. RICHARD HARIS, COMPUTER SYSTEM SPECIALIST WITH ITS, GARY CARLTON, FIRE ENGINEER. [b. Recognize Kevin Harvill from Public Works for being selected as the Top Public Works Leader for the State of Texas.] ALRIGHT, THERE IS AN ITEM TWO B. UH, WE ARE GOING TO, UH, PUT THAT ON A FUTURE AGENDA ITEM SO THAT ALL PARTIES INVOLVED WITH ITEM TWO B COULD BE PRESENT. NEXT, WE [3. CITIZEN COMMENTS Notice is hereby given that in accordance with the Texas Open Meetings Act, Texas Government Code, Chapter 551, prohibits the City Council from discussing, deliberating, or considering, subjects for which public notice has not been given on the agenda. Issues that cannot be referred to the administration for action may be placed on the agenda of a future City Council Session.] HAVE OUR CITIZEN COMMENTS. LET ME READ SOMETHING FIRST. WE HAVE, UH, TWO PEOPLE THAT HAVE SIGNED UP FOR CITIZEN COMMENTS. UH, THE PURPOSE OF CITIZEN COMMENT IS TO GIVE ALL INTERESTED CITIZENS THE RIGHT TO EXPRESS THEIR VIEWS. EVERYONE DESIGNED TO SPEAK, SHOULD IT BE EITHER SIGNED THE APPROPRIATE LIST IN THE FOYER OR EMAIL THE CITY CLERK PRIOR TO THE POSTED TIME OF THIS MEETING. EACH CITIZEN WILL GIVE HIS OR HER NAME AND ADDRESS IN ORDER TO PROVIDE A PROPER RECORD OF THESE COMMENTS. THE RULES ALLOW EACH PERSON ONE MINUTE TO SPEAK. A CITIZEN MAY PASS HIS OR HER TIME TO ANOTHER PERSON WHO IS REQUESTED TO ADDRESS COUNSEL. HOWEVER, NO CITIZEN'S REMARKS SHALL EXCEED THREE MINUTES IN TOTAL. EITHER THE ONE MINUTE OR THREE MINUTE LIMIT MAY BE EXTENDED BY MAJORITY VOTE OF THE COUNCIL. I ENCOURAGE EVERYONE TO BE AS BRIEF AND TO THE POINT AS POSSIBLE. PLEASE KEEP IN MIND THE CITY COUNCIL CANNOT DISCUSS THE DELIBER RIGHT ITEMS FOR WHICH PUBLIC NOTICE HAS NOT BEEN GIVEN ON THIS AGENDA. SO WE DO HAVE TWO INDIVIDUALS THAT, UH, HAS SIGNED UP TO SPEAK. UH, I'M GONNA DO FIRST, UM, MAYOR MANGER, IF YOU, IF YOU WILL, UM, BE PATIENT. I WILL FIRST HAVE JESSICA PEREZ, I BELIEVE, UH, SPEAK FIRST. YES, MA'AM. AT THE PODIUM. YOUR NAME. OKAY. MY NAME IS JESSICA PEREZ. I LIVE AT 32 0 2 INDIANA STREET. THAT'S IT. OKAY. UM, I JUST WANNA BRING, UM, AWARENESS TO THE CONCERN OF [00:05:01] THE CROSSWALK IN FRONT OF MARKET ON SAN CHA ELEMENTARY. I'D ASK CITY COUNCIL IF Y'ALL COULD LOOK INTO GETTING WITH GOOSE CREEK. ISD WE HAVE ABOUT 600 STUDENTS STARTING IN, UM, IN A COUPLE WEEKS. WE ONLY HAVE ONE CROSSWALK THAT CANNOT ACCOMMODATE THE 15 MINUTES TO ARRIVE TO OUR SCHOOL. ON TOP 300 OF THOSE STUDENTS HAVE A NO, UH, BUS OPTION. SO WE ARE HAVING TO WALK ALONG WITH THE OTHER 300 ARE BRAND NEW PRE-KS THAT ARE ZONED THROUGHOUT THE ENTIRE GOOSE CREEK ISD. SO YOU'RE GONNA HAVE A LOT OF, UH, NEW, NEW PARENTS COME WHO ARE NOT AWARE OF THE AREA. SO THAT'S ALL. THANK YOU MS. PEREZ. ALRIGHT, UH, NEXT WE HAVE, UM, COMMON MANAGER THAT IS SIGNED UP TO SPEAK. I WOULD, I WILL GO AHEAD AND, AND ASK, I KNOW THAT THE SUBJECT MATTER IS GONNA TAKE MORE THAN ONE MINUTE, AND SO I WILL BY, BY A VOTE OF COUNSEL, I WOULD LIKE TO EXTEND THREE MINUTES TO MAYOR INGER IF I MAY BY, AND WE CAN DO THAT BY MAJORITY VOTE. SO I'D LIKE TO, I'M GONNA, I'LL DO MY BEST TO DO A MINUTE. I KNOW, BUT I KNOW YOU'RE NOT GONNA HIT THAT MINUTE, SO I'M TRYING TO BE PROACTIVE ON THAT. BUT IF YOU CAN DO A MINUTE, THAT'S FINE, BUT THEN WE, I MAY HAVE TO PAUSE YOU BRING OUT THE HOOK. OKAY. . UH, BUT BEFORE I SPEAK, I WOULD LIKE TO REPORT THAT, UH, EARLIER TODAY. ADDRESS, PLEASE MA'AM, NAME AND ADDRESS. CAN YOU STATE YOUR NAME AND ADDRESS? CALVIN MINGER. UH, FOUR 11 NORTH BURNETT DRIVE IN BAYTOWN, TEXAS 7 7 5 2 OH. UH, I'D LIKE TO, I HAD A REPORT EARLIER TODAY THAT KENDRICK WAS FEEDING CATS OUT IN THE PARKING LOT, SO I JUST WANTED TO LET Y'ALL KNOW THAT. JUST, IT'S A KIND OF A HOT TALK, HOT TOPIC TODAY. SO, I'M HERE TODAY TO TALK TO YOU ABOUT, UH, THE PROPOSED, UH, POSSIBLE DRILLING OPERATION IN, IN SCOTT BAY. UH, TODAY WE'RE CATCHING TROUT, REDFISH AND FLOUNDER AND BURNETT BAY. THAT WAS NOT THE CASE BACK IN THE SIXTIES DUE TO THE HEAVY POLLUTION THAT WAS GOING ON UPSTREAM IN THE HOUSTON SHIP CHANNEL. THERE WAS NO, THE ONLY THING IN THERE WAS MULLET AND, AND, AND GAR, THEY PASSED THE CLEAN WATER ACT, THEY CLEANED UP THE BAYS AND THINGS ARE GOING WELL. THE FISH HAVE RETURNED. HOWEVER, THOSE DIOXIN AND TOXINS ARE STILL THERE. THEY'RE DORMANT AND THEY'RE HARMLESS DISTURBED. YOU'RE GONNA HAVE AN, IT'S A REALLY A, AN ENVIRONMENTAL DISASTER WHEN ALL THOSE DIOXINS OR TOXINS ARE RELEASED. ALL THE FISH AND MARINE LIFE ARE GONNA GET CONTAMINATED. IF ANY DRILLING OPERATIONS HAPPEN IN THAT BAY, THAT'S WHAT'S GONNA HAPPEN. AND IT'S GONNA SPREAD TO CRYSTAL AND BURNETT BAY AS WELL. ALRIGHT, PAUL'S RIGHT THERE. UM, BY A MAJORITY OF VOTE WE CAN'T EXTEND. MAYOR RUN'S COMMENTS. SO I WOULD ENTERTAIN A MOTION FOR A THREE MINUTE. I MOTION TO, I MOTION TO EXTEND THIS TIME BY THREE MINUTES. MOTION. SECOND, ARE THOSE IN FAVOR OF THE MOTIONS PRESENTED? PLEASE SAY, AYE. AYE. ARE THOSE OPPOSED? ALRIGHT. YES, SIR. AND I HAVE THREE MINUTES. THANK YOU. UH, THANK YOU COUNSEL. UH, SO THIS, THIS WAS TRIED BACK IN 2001 WITH SANCHEZ O'BRIEN AND WE STOPPED HIM. THE CITY FORMALLY OPPOSED THAT PERMIT. THEY, THERE'S, THERE ARE THOSE WHO ALLEGE THIS PERMIT HAS BEEN GRANTED. IT HAS NOT, THEY HAVE NOT APPLIED FOR THIS DRILLING PERMIT. UH, WITH A, WITH A MASSIVE EFFORT WITH THE CITY AND FORMAL COMPLAINTS, UH, THEY KNEW THERE WERE GONNA BE A PROBLEM. SO THEY DRILL THE WELL ON LAND. I TOLD THE GUYS WHO WERE DOING THIS, WERE GONNA FORMALLY OPPOSE YOU. UH, I AM AND OTHERS, BUT WE'RE ALSO GONNA WORK HARD TO FIND Y'ALL A SUITABLE LAND LOCATION. WE, AND I'VE BEEN DOING THAT SINCE ALL THIS STARTED. I'M WORKING WITH 'EM. I TALKED TO 'EM YESTERDAY. UH, THEY, THEY, THEY APPRECIATE OUR TRYING TO HELP THEM. THEY DO SAY IF THEY HAVE TO, THEY'RE GONNA DRILL IT OFFSHORE. AND I SAID, WELL THEN IN THAT CASE, WE'RE GONNA OPPOSE YOU OFFSHORE. AND SO IT IS IMPERATIVE. HERE'S WHAT'S IMPERATIVE. THE, THE, THE DAMAGE IT WOULD DO TO THE VITALITY AND THE CLEANLINESS OF THOSE BAYS AND THAT MARINE LIFE, UH, WOULD BE TERRIBLE. NOT ONLY THAT IT, BUT THE WORD WOULD GET OUT ABOUT THE CONTAMINANTS AND THE POLLUTANTS IN OUR BAYS IN BAYTOWN. AND THAT'S GONNA GET REPORTED AND THAT'S GONNA IMPACT OUR IMAGE AND IT'S GONNA IMPACT US ECONOMICALLY. SO IT IS MOST IMPORTANT THAT WE DO EVERYTHING WE CAN TO FACILITATE THEIR EFFORT AND HELP THEM FIND A SUITABLE LAND LOCATION. IT'S A WIN-WIN FOR US ENVIRONMENTALLY, ECONOMICALLY, AND IT'S A WIN-WIN FOR THEM. 'CAUSE IT'S A SAFER DRILLING OPERATION. SO THIS EFFORT CONTINUES, UH, AS, AS IT CONTINUES, I'LL, I'LL TRY TO COMMUNICATE WHAT'S GOING ON. UH, BUT, BUT, UH, HOPEFULLY WE CAN RESOLVE THIS TO, [00:10:01] UH, EVERYBODY'S MUTUAL SATISFACTION. SO JUST WANNA LET Y'ALL DO THAT. THANK Y'ALL. THANK YOU FOR THE EXTRA TIME AND KEEP UP THE GOOD WORK. ALRIGHT, THANK Y'ALL. THANK YOU MAYOR. ALRIGHT, WE WILL MOVE ON. I BELIEVE THAT IS ALL THE CITIZEN COMMENTS THAT HAVE BEEN SIGNED UP. UH, [a. Receive the City Manager's Proposed Municipal Budget and budget message for Fiscal Year 2023-24.] SO WE MOVE ON TO ITEM FOUR A, RECEIVE THE CITY MANAGER'S PROPOSED MUNICIPAL BUDGET AND BUDGET MESSAGE FOR FISCAL YEAR 23, 24. GOOD EVENING, MAYOR. COUNSEL, GIMME ONE SECOND. I WANNA GET EVERYTHING PULLED UP. ALL RIGHT, MAYOR. COUNSEL, DO YOU HAVE THE BUDGET BOOKS IN FRONT OF YOU? HAVE THEY BEEN PASSED OUT THIS TIME? UM, WE CAN, YEAH, IF WE CAN PLEASE. WELL, WHILE WE GET STARTED, UH, MAYOR COUNCIL, UH, WE ARE HERE TODAY TO PRESENT THE FY 24 BUDGET, BUT BEFORE WE GET INTO THE NUMBERS AND CHANGES, UH, I DO WANT TO STATE THAT THE TAX RATE WILL NOT BE ADDRESSED TODAY. OKAY. UH, THE TAX RATES, WE JUST GOT THESE CERTIFIED ROLES ON TUESDAY. UH, WE WILL HAVE THOSE NUMBERS FOR YOU BEFORE THE, OR BY THE WORKSHOPS, AND I WILL SEND YOU AN EMAIL ON WHAT THE PROPOSED TAX RATE WILL BE. UH, BEFORE WE EVEN GET TO THE WORKSHOPS, I DO, UH, PLEASE KNOW THAT WE UNDERSTAND THE COUNCIL'S INTENTION IS TO WORK TOWARDS A REDUCTION IN THE TAX RATE MM-HMM . WITH A DOWNWARD TREND FROM THIS POINT FORWARD. UH, WE UNDERSTAND THAT AND WE ARE BUILDING THE BUDGET TO ADDRESS THAT AND, AND WE THINK WE WILL BE ABLE TO, UH, UH, PRESENT A BUDGET TO YOU THAT HAS A LOWER TAX RATE. THE PURPOSE TODAY IS TO PROVIDE THE FY 24 BUDGET FOR THE CITY COUNCIL AND OF BAYTOWN CITIZENS IN PREPARATION FOR THE BUDGET WORKSHOPS. OUR GOAL TODAY IS JUST THAT THE COUNCIL RECEIVES THE FY 24 DRAFT BUDGET. PLEASE NOTE THAT EVERYTHING IN HERE IS PRELIMINARY. THAT IS WHAT IS TITLED THE DRAFT. NOTHING IS FINALIZED UNTIL, UM, THE COUNCIL ADOPTS THE BUDGET IN SEPTEMBER OR AUGUST OR SEPTEMBER, WHICHEVER DATE, UH, THAT WE CHOOSE. UH, SO ANYTHING THAT COMES OUT OF TODAY'S, UM, UH, NUMBERS IS JUST THAT. IT'S JUST TALKING POINTS. UH, THAT'S NOT ONLY FOR THE, FOR THE COUNCIL ON THE DIOCESE AT THIS POINT, BUT THAT'S ALSO FOR THE CITIZENS THAT THE ENTIRE BUDGET COULD FLIP ON ITS HEAD, SHOULD THE COUNCIL SO CHOOSE IT. AND SO THESE NUMBERS ARE JUST TEMPORARY IN NATURE AT THIS POINT IN TIME. SO BEFORE WE JUMP INTO THIS AS WELL, I WANT TO EXCLAIM, I WANT TO READ OR SCREAM IT FROM THE ROOFTOPS. WE ARE IN GOOD FINANCIAL SHAPE. AGAIN, WE ARE IN GOOD FINANCIAL SHAPE. I'M REITERATING THIS BECAUSE SHORTLY I'M GONNA PRESENT DATA TO YOU THAT WILL MAKE YOU QUESTION WHAT I JUST SAID. OKAY. BUT I'M BRINGING THINGS TO YOU THAT ARE FIXABLE. IT'S, IT'S IMPERATIVE THAT WE IDENTIFY WHERE WE ARE AT SO THAT WE CAN MAKE ADJUSTMENTS ALONG THE WAY SO THAT THE BUDGET IN FRONT OF US CAN CHANGE TO HAVE A MORE SUSTAINABLE, UH, BUDGET IN THE FUTURE. IF YOU LOOK AT THE NUMBERS IN FRONT OF YOU, UM, EXCUSE ME, THE QUICK EXECUTIVE SUMMARY AS WE LOOK AT ALL THIS, REVENUE IS GROWING AT, UH, ROUGHLY TWO TO 4% DEPENDING ON WHICH NUMBERS THAT YOU WANNA LOOK AT. EXPENSE GROWTH IS AT 8%. THE CURRENT SITUATION LIMITS THE ABILITY TO PURSUE EXCESS SUPPLEMENTAL REQUESTS. THEREFORE, WE HAVE A STREAMLINE YEAR, YEAR IN FY 24 AND ASKING THE COUNCIL TO FOCUS ON PROGRAMMATIC REVIEW. SO WHEN YOU LOOK AT THE REVENUE AND IN YOUR BOOK, UM, IF YOU WANT TO TURN TO PAGE 13, AND I'LL TAKE IT SLOW SO THAT WE CAN GET TO ALL THE DIFFERENT, UH, PIECES OF THE, OF THE BUDGET BOOK, YOU WILL, YOU WILL SEE A BREAKDOWN OF ALL THE REVENUE THAT WE HAVE. YOU WILL SEE THAT THE REVENUE IS MOSTLY FLAT OR, UH, A, A GROWTH OF TWO TO 4% DEPENDING ON WHICH LINE ITEM THAT YOU'RE LOOKING AT. SO WHEN YOU'RE LOOKING AT ALL THIS, THE, UM, THE NUMBERS HAVE A CONSISTENT TREND, TWO TO 4% YEAR OVER YEAR FOR THE PAST 10 YEARS OR SO. UH, THE IDAS MAKE UP ROUGHLY 49% OF OUR REVENUE. UH, PROPERTY TAX MAKES UP ROUGHLY 20% OF OUR REVENUE AND SELLS TAX ANOTHER 16%. AND SO THOSE ARE THE THREE BIGGEST DRIVERS THAT WE HAVE FOR OUR REVENUE. AND MOST OF THOSE ARE FAIRLY FIXED. UH, I WOULD SAY THAT THE IDAS ARE FAIRLY FIXED WHEN IT COMES DOWN TO IT. THEY ARE IMPACTED BY THE TAX RATE. THE PROPERTY RATE HAS, UH, CAPS ON HOW MUCH IT CAN GROW OUTSIDE OF NEW GROWTH THAT COMES [00:15:01] IN. AND SALES TAX. YOU LIVE BY THE SWORD, YOU DIE BY THE SWORD WITH SALES TAX. SO WE'RE COMPLETELY CONSERVATIVE WHEN IT COMES DOWN TO BUDGETING WITH OUR SALES TAX REVENUE. UM, ON THE TOTAL EXPENSE LINE, THE, THE GREAT NEWS AS YOU'RE LOOKING AT THIS, AND YOU MAY ALREADY BE, YOU MAY SEE IT AND START CELEBRATING, IS THAT IT'S ACTUALLY A BUDGET DECREASE. SO THAT IS A SMALL WIN, OKAY? THERE IS ACTUALLY A, A 5.7% OR 5.7% DECREASE IN THE BUDGET YEAR OVER YEAR FROM 1 48 TO 1 39. NOW, I DON'T WANT TO BE DISINGENUOUS THOUGH, AND I NEED TO CALL OUT A FEW THINGS THAT MAY MAKE YOU THINK A LITTLE BIT DIFFERENT ABOUT THAT DECREASE. FIRST, THE OVERALL, UM, THE OVERALL BUDGET DID GO DOWN, BUT THAT'S BECAUSE WE'RE REDUCING THE AMOUNT OF CAPITAL THAT HAS BEEN TRANSFERRED OUTTA THE GENERAL FUND INTO THE CAPITAL FUND. THE OPERATING EXPENSES, IF YOU CAN SEE IT ON THE THIRD LINE DOWN, HAVE INCREASED BY $10 MILLION. UH, THERE ARE A FEW FACTORS THAT INFLUENCE THIS, BUT THE BIGGEST CHANGE IS HOW PERSONNEL NUMBERS ARE REPORTED. WE TYPICALLY HAD LARGE SALARY SAVINGS ALONG WITH OVERTIME THAT WAS NOT COMPLETELY CAPTURED, OR THE SALARY SAVINGS CONTRIBUTED TO A LOWER NUMBER THAT WAS IN THE BUDGET. AND THEN THE OVERTIME WAS NOT NECESSARILY BUDGETED COMPLETELY. AND I'LL TOUCH ON THIS A LITTLE BIT MORE, UH, LATER. AND SO THE NUMBERS THAT WERE THERE PREVIOUSLY WERE NOT TRUE NUMBERS, UH, IN THE TRUEST SENSE OF THE, OF THE WORD. OKAY? AND THEY WERE MODIFIED, BUT THERE WAS NOT TRANSPARENCY AND HOW THEY WERE MODIFIED. SO COUNSEL DIDN'T GET TO SEE A FULL PICTURE ON WHERE WE WERE AT. THIRD, THE REVENUE PIECES WHERE YOU CAN SEE THE TOTAL REVENUES AT 1 34 ARE NOT TRUE, UH, IN ALL REVENUE ON THAT SAME PER PAGE 13, YOU WILL SEE THAT THE TRANSFER IN IS ROUGHLY $6 MILLION IN AN OUTLIER FROM PREVIOUS YEARS. THAT IS A $3 MILLION TRANSFER FROM THE MEDICAL FUND TO SUPPORT ADDITIONAL, UH, EXPENSES THAT ARE NECESSARY. AND SO YOU HAVE PIECES COMING IN, UH, FROM OTHER FUNDS TO SUPPORT THE GENERAL FUND TO OFFSET SOME OF THE EXPENSES THAT WE HAVE. AND SO WHEN YOU LOOK AT ALL OF THOSE, IT SHOWS THAT WE ARE USING 5.8 MILLION OF THE WORKING CAPITAL TO FUND THE EXPENSES, UH, UH, FOR THE 139 MILLION THAT'S IN FRONT OF YOU AND TAKING THE END, END OF YEAR, PROPOSED END OF YEAR WORKING CAPITAL TO $26 MILLION, WHICH IS ROUGHLY 74 DAYS. OKAY? LAST YEAR WE SPENT DOWN THE RESERVES, THE WORKING CAPITAL TO ADDRESS SOME OF THE CIP NEEDS THAT WE HAD SO THAT WE WOULDN'T HAVE TO GO OUT FOR A HIGHER DEBT ISSUANCE. THAT CHANGE TOOK OUR WORKING CAPITAL, YOU CAN SEE FROM THE PREVIOUS YEARS, FROM THE FORTIES DOWN TO THE TWENTIES, OKAY? AND ONCE WE DID THAT, THAT WAS A ONE-TIME EXPENSE AND THEREFORE WE DON'T HAVE WIGGLE ROOM TO PLAY WITH THAT ANYMORE, NOR DO WE EXPECT TO SEE THE, UH, SALARY SAVINGS AND EXPENSE SAVINGS, UH, LIKE WE HAVE IN THE PAST. IF YOU TURN TO PAGE FIVE IN YOUR BOOK, YOU WILL SEE A VERY SIMILAR TABLE, UH, LAID OUT FOR YOU. IT'S BASICALLY A SUMMARY OF ALL THE GENERAL FUND EXPENDITURES THAT WE HAVE. OKAY? YOU CAN SEE HOW IT'S BROKEN DOWN INTO PERSONNEL SERVICES, SUPPLIES, MAINTENANCE, SUNDRY, MISCELLANEOUS CONSTRUCTION, TRANSFER OUT AND CONTINGENCY. YOU WILL SEE LARGE INCREASES PERCENTAGE WISE, YOU WILL SEE LARGE DECREASES PERCENTAGE WISE. I'M NOT GONNA JUMP INTO EACH AND EVERY ONE OF THOSE. YOU'RE PROBABLY QUESTIONING WHY IS SUPPLIES AND MAINTENANCE 14% AND 19 19% GROWTH. AT THE VERY BOTTOM OF THAT, PAGE FIVE, YOU WILL SEE ITEMS THAT ARE CONTRIBUTING TO THOSE, UH, TO THOSE INCREASES. AND IT'S BROKEN DOWN SUPPLIES, MAINTENANCE, UH, SERVICES, CAPITAL AND TRANSFERS. IF YOU HAVE QUESTIONS, UH, WE'LL MORE THAN COVER THOSE IN THE WORKSHOP AHEAD. THIS IS MEANT TO JUST BE A HIGH LEVEL SUMMARY OF THE BUDGET. SO, UM, I DO WANNA POINT OUT THAT THE PERSONNEL SERVICES DID INCREASE BY 6.3%, BUT IF YOU ACTUALLY LOOK AT THE ACTUAL NUMBERS FOR FY 23, IT'S ROUGHLY A 3.2% INCREASE. OKAY? AND SO WHEN YOU'RE LOOKING AT PAGE 11, I'M SORRY TO HAVE YOU GOING BACK AND FORTH, BACK AND FORTH, UH, BUT THIS IS RIVETING STUFF AND I'M TRYING TO MAKE IT, UH, A LITTLE BIT MORE ENJOYABLE FOR YOU. SO IF YOU LOOK AT THE PERSONNEL SERVICES FOR THE BUDGET OF FY 23, IT'S 88 MILLION. THE ACTUAL ESTIMATE THAT YOU SEE NEXT TO IT IS 91 MILLION. OKAY? AND YOU'RE GONNA ASK YOURSELF WHY THE, WHY THE HECK DO WE HAVE [00:20:02] AN EXPENSE OF 91 MILLION MORE THAN THE BUDGETED AMOUNT? THAT GOES BACK TO THE SALARY SAVINGS, AND I'LL, I'LL TOUCH ON THAT A LITTLE BIT LATER. BUT THAT JUST WAS HOW IT WAS BUDGETED AND THERE WASN'T ANY KIND OF TRANSPARENCY LAID OUT FOR, FOR YOU TO SEE WHAT THE ACTUAL NUMBERS WERE. MM-HMM . UM, YOU'LL ALSO SEE TWO LARGE CHANGES WITH THE TRANSFER OUT AND THE CONTINGENCY IN FRONT OF YOU. THE TRANSFER OUT IS WHERE THE CIP MONEY, UH, IS TRANSFERRED OUTTA THE GENERAL FUND. AND SO LAST YEAR WE TRANSFERRED MORE THAN $40 MILLION TO THE, UH, TO THE CIP FUND AND, AND BROUGHT DOWN THE WORKING CAPITAL. THAT'S WHY THIS LARGE CHANGE IS THERE. UH, THE CONTINGENCY, WE KNOW THAT THE COUNCIL HAS BEEN ASKING FOR YEARS WHY? THE WHY IS THE CONTINGENCY, AS LARGE AS IT IS, WE HAVE HEARD YOU, THAT HAS BEEN REDUCED TO A MILLION DOLLARS AND THAT WAS A MILLION DOLLAR REDUCTION AS WELL. SO WHAT'S IN THE BUDGET, AS YOU KNOW, UH, THE ANNUAL BUDGET IS ROUGHLY THE SAME EACH YEAR. WE SPEND TIME HIGHLIGHTING THE CHANGES AND THE FUNDING NECESSARY TO ADDRESS THOSE. THE FOLLOWING POINTS DO NOT COVER ALL THE ADDITIONS OR SUBTRACTIONS IN THE BUDGET. YOU CAN FIND ALMOST ALL DETAIL IN YOUR BOOKS. THE FINANCE TEAM HAS DONE A VERY GOOD JOB. YOU'LL HAVE SUMMARY PAGES. YOU'LL ON EACH TAB, OR IF YOU GO TO THE TABS, YOU'LL HAVE SUMMARIES, AND THEN YOU'LL HAVE DETAILED TABS AS WELL FOR LOOKING AT EACH DEPARTMENT, SHOULD YOU CHOOSE BETWEEN NOW AND THE WORKSHOP. AND THAT WILL GIVE YOU MORE DETAIL. OKAY? SO, UM, AS I SAID, THIS DOES NOT COVER ALL THE ADDITIONS AND SUBTRACTIONS. UH, THIS SUMMARY'S MEANT TO GIVE YOU A HIGH LEVEL OVERVIEW OF IMPACTFUL CHANGES IN THE BUDGET. SO WE START WITH EMPLOYEES. WE ARE PROPOSING A 4% COLA, UH, FOR THE EMPLOYEES, WHICH ALIGNS WITH THE CIVIL SERVICE STEP, UH, FOR BOTH POLICE AND FIRE THAT WE HAVE. AND YOU MAY ASK, OKAY, WELL, IF WE'RE HAVING THE HARDSHIPS, YOU KNOW, WHY ARE WE DOING THIS ACROSS THE BOARD? AGAIN, I WANT TO REITERATE, WE ARE FINANCIALLY SOUND OKAY. WE ARE IN A GOOD POSITION. IN ADDITION TO THAT, THE 4%, UM, IS ALREADY SET INTO THE CIVIL SERVICE CONTRACTS AND ROUGHLY MAKES UP A MAJORITY OF THE LARGE INCREASE. UM, IN THE PERSONNEL PIECE, IT'S, IT'S APPROXIMATELY A $3.6 MILLION INCREASE IN PERSONNEL SERVICES. UM, AND OF THAT, UH, 1.2, I'M THINKING OFF THE TOP OF MY HEAD, I THINK 1.2 OF THAT WOULD ACTUALLY BE NON-CIVIL SERVICE. SO ALL THE OTHER EMPLOYEES OUT OF POLICE AND FIRE. AND SO, UH, THE INCREASE OF 4% IS ROUGHLY 1.2 MILLION. IN ADDITION TO THAT, UM, WE HAVE A MEDICAL INSURANCE PAY PERIOD HOLIDAY, UH, THAT IS PROPOSED. THE ABILITY TO DO THIS IN PART IS HAVING A HEALTHY EMPLOYEE BASE AND A LOWERED LOSS RATIO. SO I WANT TO HAVE A BIG SHOUT OUT TO THE EMPLOYEES BECAUSE THEY'RE THE ONES KEEPING THAT THE WAY THAT IT IS IN MAKING THIS, UH, A SUSTAINABLE FUND THAT WE HAVE. UH, THE ADDITIONAL HOLIDAY PER COUNCIL'S REQUEST IS NOT ON THIS BUDGET, BUT WILL BE DISCUSSED AT THE WORKSHOP. OKAY. AND THEN WE CAN DISCUSS ON AUGUST 15TH AND 16TH ITEMS THAT IMPACT THE DEPARTMENT. WELL, THE BIGGEST ONE IS THAT THERE ARE NO NEW PERSONNEL IN THIS BUDGET AT ALL. THERE ARE IN THE GENERAL FUND BUDGET, THERE IS ONE IN THE WATER AND SEWER FUND, BUT THERE ARE ZERO IN THE GENERAL FUND BUDGET. THIS IS EXTRAORDINARY FROM MY POINT OF VIEW BECAUSE, UH, WE APPROVED 43 LAST YEAR. WE HAD 34 PLUS REQUESTED THIS YEAR. AND, UH, THOSE NUMBERS MAY SEEM LARGE TO Y'ALL, UH, BUT WHEN YOU CONSIDER THAT WE HAVE A A THOUSAND EMPLOYEES IN THIS ORGANIZATION, IT'S ROUGHLY ONLY A 3% INCREASE WITH 30 34 EMPLOYEES, UH, REQUESTED. SO WHEN YOU PUT IT IN THAT PERSPECTIVE, IT'S NOT THAT BIG OF AN INCREASE, UH, CONSIDERING THAT WE ARE GROWING, UH, TREMENDOUSLY AT THIS POINT. AND SO TO NOT HAVE ANY NEW EMPLOYEES ADDED TO THE BUDGET, I THINK IS AN ANOMALY FOR THIS ORGANIZATION. UH, BUT IT'S SOMETHING THAT, UH, WE ARE PROPOSING THIS YEAR. IN ADDITION TO THAT, UM, EXCUSE ME, UH, THE SUPPLEMENTAL FUNDING HAS BEEN DECREASED, UH, FOR THE DEPARTMENTS. WE HAD OVER $2.4 MILLION REQUESTED FOR SUPPLEMENTAL REQUESTS FOR ADDITIONAL ASSETS THAT NEEDED TO BE USED, SUCH AS, UH, BACKHOES OR TRACTORS OR WHATEVER THE CASE MAY BE THAT IS NEEDED FOR OPERATIONS. UH, WHAT HAS BEEN APPROVED IS ROUGHLY $600,000. SO IT WAS A LARGE DECREASE IN SUPPLEMENTAL UH, PIECES AS WELL. THE CIP, UM, IS ON HERE AND IT IS, UM, A, A REDUCTION AS WELL. WE ARE GOING WITH A LITTLE OVER $17 MILLION IN A TOTAL CIP 15 OF THAT IS PROPOSED TO BE THROUGH A CERTIFICATE OF OBLIGATION ISSUANCE OF IN 24, 1 [00:25:02] 0.5 MILLION WILL BE GENERAL FUND CASH THAT IS TRANSFERRED TO THE CIP FUND. AND THEN YOU HAVE A LITTLE OVER $800,000 THAT IS TRANSFERRED IN FROM A CARRYOVER IN THE PROJECTS THAT WERE DEEMED NOT TO MOVE FORWARD. AND SO THAT 800,000 IS TRANSFERRED OVER. AND SO WE HAVE A TOTAL, A LITTLE OVER $17 MILLION IN THE CIP FUND. UM, AND THAT IS ALL DEPENDENT ON THE COUNCIL, UH, MOVING FORWARD WITH A ISSUANCE FOR $15 MILLION. UM, I DO WANT TO, UM, TO NOTE THAT THE MDD PROJECTS, UH, THAT WERE PUSHED, UH, WITH THEIR BUDGET ARE CAPTURED IN THIS BUDGET. AND SO ANYTHING THAT WAS ABLE TO BE, UH, BROUGHT INTO THE FY 23 BUDGET FROM MDD HAS BEEN BROUGHT IN. ANY, ANYTHING ELSE THAT WAS NOT ABLE TO BE TAKEN WAS THE, WAS PUT INTO THE FY 24 CIP BUDGET. THE ONLY EXCEPTION TO THAT IS THE PIRATE SPACE SPLASH PAD. THE PIRATE SPACE SPLASH PAD DID NOT MAKE THAT, UH, CUT. AND I'LL EXPLAIN THAT IN A LITTLE BIT. ITEMS THAT IMPACT THE ORGANIZATION, AS I'VE ALREADY SAID, REVENUE GROWTH IS LOWER THAN EXPENSE GROWTH, WHICH IS A CONTINUING TREND. UM, A LARGE PORTION OF OUR BUDGET, WELL, A LARGE PORTION OF OUR BUDGET EXPENSE IS PERSONNEL COST WITH A FULL BUDGET OF APPROXIMATELY $99 MILLION. THIS IS THE LARGEST PIECE THAT WE HAVE IN OUR BUDGET. THE BUDGET IN FRONT OF YOU ON PAGE 11 SHOWS $94 MILLION. AND I WANNA BE VERY CLEAR THAT THAT INCLUDES A 5% VACANCY RATE. AND SO A VACANCY RATE OF EMPLOYEES THAT WE FILL ARE, ARE POSITIONS THAT WE'RE NOT GONNA BE FILLED IS THERE. HISTORICALLY, VACANCY RATES HAVE BEEN, UH, HAVE BEEN HIGH LEADING TO LARGE VACANCY SAVINGS NORTH OF $10 MILLION EACH YEAR. THE RATES ARE DECLINING AS POSITIONS ARE FILLED, UH, PD AND, AND FIRE, UH, SPECIFICALLY. SO OUR ESTIMATES, UH, ARE WE BELIEVE MORE ACCURATE AND FULLY REPRESENTATIVE OF OUR PROJECTED STAFFING LEVELS. PREVIOUSLY, WE DID NOT FOLLOW SUCH A DETAILED APPROACH. THIS IS JUST ONE OF THE IMPROVEMENTS IN THIS AND FUTURE BUDGETS. SO LET'S SET THE STAGE ON HOW WE ARE REALIGNING FOR SUSTAINABLE TOMORROW. THERE ARE A SLEW OF INFLUENCING FACTORS THAT ARE CONTRIBUTING TO THE REDUCED MARGINS IN OUR BUDGETS. WE ARE SEEING EXTRAORDINARY COSTS DUE TO INFLATION AND ADDRESSING THE DEFERRED MAINTENANCE ITEMS THAT NEED TO, UH, THAT HAVE BEEN FORGOTTEN ABOUT FOR MANY YEARS. THE ORGANIZATIONAL GROWTH, UH, HAS NOT BEEN STRATEGIC OVER THE YEARS AND HAS LED TO ACTIVITIES THAT MAY NOT BE, UH, SUSTAINABLE IN THE FUTURE. IN ADDITION, THE GENERAL FUND IS SUBSIDIZING OUR ENTERPRISE FUNDS, WHICH ALL SHOULD BE SELF-SUFFICIENT. THIS HAS LED TO OUR CURRENT SITUATION, WHICH IS OUR EXPENSES OUTPACING OUR GROWTH OR OUR REVENUE GROWTH. AT THE MARCH RETREAT. I ASK COUNSEL TO ALLOW OUR TEAM TO REDESIGN AND FOCUS, OR EXCUSE ME, TO REALIGN AND FOCUS ON OUR CORE SERVICES. WE NEED TO UNDERSTAND AS AN ORGANIZATION WHAT OUR MAIN FOCUS IS AND EXCEL AT THAT. BEFORE WE DO ANYTHING MORE, THIS FLOWS INTO OUR CIP. WE CURRENTLY HAVE OVER 175 ACTIVE PROJECTS IN OUR CIP UH, FOR OUR CIP TEAM. WE ONLY HAVE FIVE PEOPLE THAT MANAGE ALL 175 PROJECTS. IF YOU BREAK THAT DOWN, THAT'S ROUGHLY 35 DIFFERENT PROJECTS PER EMPLOYEE. IF YOU BREAK THAT DOWN PER WEEK, THAT'S JUST A LITTLE OVER AN HOUR PER EACH PROJECT, PER EACH WEEK. NOT ONLY IS THAT A DISSERVICE TO THE TEAM MEMBERS THAT HAVE TO, UH, MANAGE THOSE PROJECTS, IT'S ALSO A DISSERVICE TO THE CITIZENS. IT'S A DISSERVICE TO THE ASSETS THAT WE'RE PUTTING ON THE GROUND BECAUSE WE CAN'T GUARANTEE THAT WE'RE DOING GOOD WORK, PERIOD. UM, SO IT'S A LOSING SITUATION FOR ALL AND HAVING THE MINIMAL PROJECTS RIGHT NOW IN THE CIP, IT'S ALLOWING US TO CATCH UP, SO TO SPEAK, AND FOCUS MORE ON QUALITY OUTCOMES. THE PROPOSED BUDGET THAT YOU ARE SEEING IS A BUDGET THAT REALIGNS OUR CORE SERVICES SO THAT WE CAN BE DELIBERATE AND STRATEGIC WITH OUR MONEY. OUR ENTERPRISE FUNDS, THESE ARE THE ENTERPRISE FUNDS THAT ARE PART OF OUR EVERYDAY OPERATIONS. THEY ARE SEPARATE FUNDS AND THEY'RE MEANT TO BE SELF-SUPPORTING FUNDS, MEANING THAT ALL THE REVENUE THAT GENERATED IN EACH ONE OF THOSE FUNDS SHOULD BE PART OR SHOULD TAKE CARE OF THE EXPENSES THAT THEY HAVE. AS WE MOVE FORWARD, WE'RE FINDING OUT THAT THE GENERAL FUND IS SUPPORTING MORE AND MORE OF THESE ENTERPRISE FUNDS. WITH THE AQUATICS FUND, [00:30:01] UH, THE PROPOSED EXPENSES FOR THE AQUATICS FUNDS ARE 4.7 MILLION. UM, WE NEEDED TO, UH, TRANSFER IN $1.4 MILLION TO SUPPORT THE, UM, THE EXPENSES OF THE AQUATICS FUND. UM, RIGHT NOW, IF YOU TAKE THE 1.4 MILLION THAT WENT INTO THIS, THE 700,000 THAT SUPPORTS THE DEBT FROM THE MDD AND THEN THE 2.5 MILLION THAT WAS BROUGHT IN FROM COVID WE'RE HAVING EXTRAORDINARY, WE'RE HAVE MILLIONS AND MILLIONS OF DOLLARS THAT ARE BEING SPENT TO SUPPORT THIS FUND. AND JUST THIS YEAR ALONE, IT'S ROUGHLY 2.1 MILLION FROM TWO DIFFERENT FUNDS TO SUPPORT THE AQUATICS FUND. THE NEXT ONE IS THE GARAGE FUND. THERE'S ACTUALLY NO INCREASE IN THE EXPENSES. THE EXPENSES ARE RELATIVELY FLAT, BUT WE NEEDED $350,000 FROM THE WATER AND SEWER FUND TO SUPPORT THIS. OKAY? THIS IS A FUND THAT, UH, IS THAT WE HAVE A CENTRAL GARAGE THAT MAINTAINS ALL OF OUR FLEET. AND I, I WOULD CONSIDER THIS JUST AN EXTENSION OF OUR OPERATIONS. AND SO I WOULD ADD THIS ALMOST TO THE 128 MILLION THAT YOU SAW ON THE FIRST SLIDE FOR OPERATIONAL EXPENSES. OUR HOTEL AND MOTEL FUND, UM, IS DOING FANTASTIC. IT'S GREAT. AND, UH, THE GREAT PART ABOUT THAT IS WE, I DON'T BELIEVE THAT WE FULLY CAPTURED ALL THE HYATTS HOTEL FUNDS INTO THIS AT THIS POINT, UH, BECAUSE WE DON'T HAVE GOOD NUMBERS ON WHAT THAT'LL BE. UH, AT THE END OF THE DAY, UH, IT'S GONNA HAVE 614 DAYS OF RESERVE WITH THIS FUND. AND YOU DO SEE A, YOU WILL SEE A MILLION DOLLAR DECREASE IN THE ACTUAL EXPENSES. THAT'S BECAUSE WE HAD A MILLION DOLLAR CAPITAL EXPENSE LAST YEAR, AND THAT'S, THAT'S NOT CAPTURED. WE DON'T HAVE A CAPITAL EXPENSE IN FY 24. THE SANITATION FUND, THIS IS, UM, ANOTHER FUND THAT IS SUPPORTED BY THE GENERAL FUND. WE HAD TO TRANSFER $1.325 MILLION INTO THIS FUND JUST TO KEEP IT FROM OPERATING IN A DEFICIT. THE TOTAL EXPENSES ARE LOOKING AT 8.3 MILLION. NOW, I HAVE GREAT NEWS WITH THIS RIGHT NOW. UM, WE HAVE A GREEN BELT AND BLACK BELT PROGRAM THAT'S PUT ON BY OUR HR TEAM AND LOOKING AT PROCESS IMPROVEMENTS THROUGHOUT THE ORGANIZATION. UH, WE RECENTLY HAD A GRADUATE COME OUT OF THERE AND SHE HAS MADE A PROPOSAL, UH, THAT THIS WOULD REDUCE THE EXPENSES IN THIS FUND BY $1.2 MILLION. SO I HAVE INVITED HER TO GIVE US A PRESENTATION, AND I LOOK FORWARD TO THAT IN THE COMING WEEKS. I DON'T KNOW IF SHE'S HERE TONIGHT OR NOT, BUT, UH, I LOOK FORWARD TO THAT PRESENTATION, UH, BECAUSE THAT WOULD BE FANTASTIC, UM, IF WE COULD HAVE SUCH A LARGE REDUCTION IN THIS COST. THE STORMWATER UTILITY FUND, THIS IS ANOTHER STRONG FUND THAT HAS AN EXPENSE DECREASE, UH, TO A REDUCTION IN CAPITAL BEING SPENT. UM, WE ARE NOT, UM, THE REVENUES ARE STRONG WITH A $1 MILLION INCREASE PROPOSED AND THE ENDING OF THE YEAR WITH A HUNDRED OR 807 DAYS. AND PLEASE NOTE THAT THIS RESERVE IS BUILDING ON PURPOSE. IT WAS INTENTIONAL BY A PREVIOUS COUNCIL TO MAKE SURE THAT THIS RE, THAT THIS RESERVE CONTINUED TO BUILD SO THAT IT COULD ADDRESS LARGE CAPITAL ITEMS IN THE FUTURE. AND THAT'S WHY IT'S SUCH, UH, A HEALTHY FUND AT THIS POINT. THE WAREHOUSE FUND, THIS IS, I WOULD CONSIDER AN OPERATIONAL FUND THAT'S JUST CLASSIFIED IN A SEPARATE FUND AT THIS POINT. UH, WE HAD TO TRANSFER $75,000 OUT OF, UM, OUT OF THE GENERAL FUND TO SUPPORT THIS. BUT IN, IN TRUTH, I WOULD SAY THAT IT JUST, THE TRUE EXPENSE OF THE WAREHOUSE FUND IS $530,000 BECAUSE IT'S SOMETHING THAT'S USED FOR OPERATIONS TO PROVIDE INVENTORY TO OUR STAFF AS THEY'RE WORKING IN AN, UH, UH, OUT IN THE CITY. AND THEN WATER AND SEWER, THERE IS A 9% INCREASE IN EXPENSES IN THIS FUND, WHICH IS, UH, DUE TO SUPPLY COSTS INCREASING BY $2 MILLION. UH, WE HAVE AN ADDITIONAL MILLION FOR CAPITAL ITEMS AND AN INCREASE IN DEBT SERVICE TO ROUND OUT TO A $4 MILLION INCREASE IN THIS FUND. THE WORKING CAPITAL IS CURRENTLY STRONG WITH OVER $10 MILLION PROJECTED AT THE END OF FY 24, WHICH ROUGHLY EQUATES TO 112 DAYS. IT IS IMPORTANT TO NOTE THAT THE $7 MILLION REVENUE INCREASE IS DUE TO A 6% RATE INCREASE IN BOTH THE WATER AND SEWER RATES. OKAY? SO IT'S NOT SIX PLUS SIX EQUALS 12. IT'S A TOTAL INCREASE OF 6% IN TO EACH OF THE WATER AND SEWER RATES. OKAY? IF THAT INCREASE IS NOT THERE, IF THAT 6% IS NOT THERE IN THAT, UH, IN THE WATER AND THE 6% IS NOT THERE IN SEWER, THIS FUND WILL BE OPERATING IN A DEFICIT. OKAY? IT'S, IT'S VERY IMPORTANT TO NOTE THAT THIS FUND WILL BE OPERATING IN A DEFICIT. IF THOSE INCREASES ARE NOT, IS, ARE NOT TAKEN, UM, YOU MAY ASK, OKAY, WELL IT HAS $10 MILLION IN ITS RESERVE. WHY NOT JUST SPEND THAT DOWN AND NOT HAVE THE [00:35:01] INCREASES? I WOULD SUGGEST TO YOU THAT WE HAVE A TREMENDOUS AMOUNT OF INFRASTRUCTURE FOR SANITARY SEWER AROUND THE CORNER. THAT MONEY THAT'S IN THE RESERVE IS GOING TO BE USED TO HELP MITIGATE SOME OF THAT EXPENSE. SO WE DON'T HAVE TO GO OUT FOR LARGE DEBT ISSUANCES TO ADDRESS THAT INFRASTRUCTURE. AND SO WE'RE KIND OF IN A ROCK IN A HARD PLACE WITH THIS ONE. AT THIS POINT, BOWOOD DID INCREASE THEIR RATES BY 6% FOR THE WATER, AND THAT 6% IS PASSED ON INTO HERE, AND THAT'S WHY YOU'RE SEEING A 6%, UH, RATE INCREASE. SO I ALSO WANT TO LET YOU KNOW THAT WHILE THESE NUMBERS MAY LOOK SCARY IN FRONT OF YOU, YOU HAVE OUR COMMITMENT THAT WE ARE WORKING THROUGHOUT FY 24 TO ENSURE THAT WE DON'T HAVE TO USE ANY OF THESE SUBSIDIES. WE ARE TRYING TO LOOK AT PROGRAM REVIEWS THE WAY THAT WE'RE OPERATING SO THAT THESE OP THAT THESE TRANSFERS DON'T HAVE TO HAPPEN. WE HAVE TO BUDGET IT SO THAT IF WE DO FALL SHORT THAT THE MONEY DOES TRANSFER OVER. BUT WE ARE COMMITTED TO LOOKING AT THIS SO THAT WE DON'T HAVE TO, UM, HAVE THE MONEY GO FROM THE GENERAL FUND INTO THESE FUNDS. AND OM WITH THIS, HERE'S A GRAPH OF OUR REVENUES COMPARED TO OUR OPERATIONAL EXPENSES. THE REVENUES ON THE TOP, THE OPERATIONAL EXPENSES ARE ON THE BOTTOM. THE GAP YOU SEE AT THE VERY TIP IS $3 MILLION, ROUGHLY 2%. SO THE MARGIN BETWEEN OUR REVENUE AND OUR OPERATING EXPENSE IS ROUGHLY 2%. IT'S VERY, VERY SMALL. YOU CAN SEE IN PREVIOUS YEARS IT'S ROUGHLY $10 MILLION. THE LARGER GAP THROUGH ALL THOSE YEARS THAT GOES BACK TO 2018, UH, IS ROUGHLY $10 MILLION. THAT $10 MILLION IS ONE. AND DUE TO THE SALARY SAVINGS THAT WE HAD ALL THOSE YEARS, UH, AS I, AS I STATED, THE SALARY SAVINGS WEREN'T NECESSARILY PUT INTO THE OPERATING OPERATING EXPENSES. AND SO THEY WERE BUDGETED AS A LOWER NUMBER, WHICH GIVES YOU AN ARTIFICIAL LOOK AT WHERE THINGS ARE AT AT THIS, UH, THROUGHOUT TIME. UM, BUT WE HAVE AN OPPORTUNITY IN FRONT OF US TO MAKE CHANGES THAT IMPACT THIS BUDGET AND FUTURE BUDGETS. I WOULD LIKE TO SPEND 24 WITH COUNSEL REVIEWING ALL OF OUR PROGRAMS AND SERVICES THAT WE HAVE. I ALSO WANNA HIGHLIGHT THAT WE HAVE MANY POSITIONS ADDED, UM, UH, POSITIVES, UH, POSITIVE ADDITIONS AND REVENUE GENERATORS ON THE HORIZON. IF WE CONTINUE TO SPEND THE WAY THAT WE HAVE, THAT ADDITIONAL REVENUE WILL BE FOR N JOIN ME IN FY 24 IN REALIGNING FOR SUSTAINABLE TOMORROW. OUR NEXT STEPS, MAYOR AND COUNCIL, ARE TO GO TO THE AUGUST 15TH AND 16TH, UM, BUDGET WORK SESSIONS TO ACTUALLY HAVE AN IN-DEPTH LOOK AT ALL THESE THINGS. WE WILL BRING TO YOU PROGRAMS THAT WE WOULD LIKE TO REVIEW THROUGHOUT THE YEAR. WE WILL TALK ABOUT OTHER REVENUE PIECES THAT WE HAVE SO THAT WE CAN START PLANNING AND BEING MORE INTENTIONAL ON HOW WE WANT TO HANDLE OUR FINANCES GOING FORWARD. ALRIGHT. THANK YOU MR. CITY MANAGER. UH, ANY QUESTIONS I GUESS REGARDING POLICE'S SUMMARY OF THE BUDGET? UH, I HAVE A QUESTION. YES, MA'AM. UM, AND IT'S NOT TO GO OVER IT THIS EVENING, BUT WHEN WE START THE BUDGET PREPARATIONS, I'D LIKE TO HAVE PREPARED PERHAPS, UM, SOME OF THE DEPARTMENTS THAT HAVE ATTRITION COMING UP AS WE'RE NOT ADDING ANY PERSONNEL, UM, TO THE BUDGET. UM, WHAT WOULD THAT LOOK LIKE? AND, UM, SO, AND WE CAN TALK ONE-ON-ONE AS WELL, BUT I'D KIND OF LIKE TO GO INTO THAT AS WE GO INTO THE WORKSHOPS BECAUSE SOME DEPARTMENTS OBVIOUSLY HAVE TRAINING THAT NEEDS TO HAPPEN, UM, IN THE SIX MONTHS THAT WE'RE GOING INTO, UH, BEFORE THEY RETIRE OR LEAVE THE ORGANIZATION. THAT'S THE TIME THAT'S NEEDED FOR TRAINING, UH, FOR SOME OF THESE DEPARTMENTS. AND SO, YES, MA'AM, THAT'S ONE THING THAT I'D, I'D LIKE TO DISCUSS AS WE GO INTO THE BUDGET SESSIONS. YES, MA'AM. OKAY. SO WE WILL CONSIDER, UH, ITEM FOUR A AS RECEIVED. WE MOVE ON TO [b. Consider an ordinance setting the date, time and place for a public hearing regarding the Proposed Municipal Budget for Fiscal Year 2023-24.] ITEM FOUR B. THE FIRST IS CONSIDER ORDINANCE SETTING THE DATE, TIME, AND PLACE FOR THE PUBLIC HEARING REGARDING THE PROPOSED MUNICIPAL BUDGET. UH, WHAT IS THAT DATE? AUGUST 24TH. AUGUST 24TH AT 6 45. OKAY. SO I WOULD ENTERTAIN A MOTION FOR APPROVAL OF THE AUGUST 24TH AT 6 45 AS THE DATE, TIME, AND PLACE, OBVIOUSLY COUNCIL CHAMBERS, UH, FOR ITEM FOUR B, MOVE TO APPROVE. SECOND, WE HAVE A MOTION. SECOND. ANY QUESTIONS OR COMMENTS? IF NOT ALL THOSE IN FAVOR OF AUGUST 24TH, 6:45 PM BAYTOWN, CITY HALL COUNCIL CHAMBERS, AS FAR AS THE PUBLIC HEARING FOR THIS YEAR'S BUDGET, PLEASE SAY AYE. A AYE. THOSE OPPOSED. ITEM FOUR [c. Consider a resolution setting the dates for the budget work sessions to discuss the Proposed Municipal Budget for Fiscal Year 2023-24.] CS, CONSIDER RESOLUTION [00:40:01] SETTING THE DATES FOR THE BUDGET WORK SESSION TO DISCUSS THE OPPOSED MUNICIPAL BUDGET FOR 22, EXCUSE ME, FOR 2324. UM, THIS IS EXPRESSED AUGUST 15TH AND 16TH. I'M NOT SURE ON THE TIMES, BUT 15TH AND 16TH IS WHAT IS PROPOSED DATES AND ALSO AUGUST 10TH AND AUGUST 10TH, YEAH, AT FIVE 30. FIVE 30. OKAY. ALL RIGHT. IS THERE ANY, ANY CONCERNS? UM, ON FOUR C OR AT LEAST THE DATES AND I GUESS THE TIME IS FOR AUGUST 10TH, NOT, NOT ENTERTAIN A MOTION FOR FOUR C FOR AUGUST 10TH AT FIVE 30 AND, UH, TIME TO BE DETERMINED, BUT AUGUST 15TH AND 16TH FOR WORK SESSION. MOTION TO APPROVE. SECOND. MOTION TO SECOND. ANY QUESTIONS, COMMENTS? THOSE IN FAVOR? FOUR C IS PRESENTED, PLEASE SAY AYE. AYE. THOSE POST ITEM FIVE, ACE [a. Receive the Fiscal Year 2023-24 Budget of the Baytown Crime Control and Prevention District.] RECEIVE THE FISCAL YEAR 2324 BUDGET FROM THE BAYTOWN PRIME CONTROL AND PREVENTION DISTRICT. UH, GOOD EVENING MAY. AND COUNSEL, UM, I'M HAPPY TO PRESENT THE FY 24 BUDGET FOR PRIME CONTROL AND PREVENTION DISTRICT. UM, THIS PROPOSED BUDGET CONSISTS OF 2.54 MILLION IN REVENUE AND 2.58 MILLION IN EXPENSES IS PRETTY STRAIGHTFORWARD BECAUSE IT PAYS FOR THE EQUIPMENT THAT'S NEEDED FOR PD. UM, THE DETAILS ARE IN YOUR PACKET AND THE CCPD APPROVED THE BUDGET ON JULY 11TH. ANY QUESTIONS REGARDING THE CCPD BUDGET AS PRESENTED? AT LEAST, IF NOT, WE WILL, UH, CONSIDER ITEM FIVE A IS RECEIVED. NEXT IS [b. Receive the Fiscal Year 2023-24 Budget for the Baytown Fire Control, Prevention, and Emergency Medical Services District.] TO RECEIVE THE FISCAL YEAR 2324 BUDGET FOR THE BAYTOWN FIRE CONTROL PREVENTION AND EMS DISTRICT. I'M ALSO HAPPY TO PRESENT THE FY 24 BUDGET FOR FIRE AND EMS. UM, AS YOU KNOW, THEY, UH, THIS BOARD ALSO PAYS FOR THE EQUIPMENT FOR FIRE, UM, TO RESPOND TO EMERGENCY NEEDS OF OUR CITIZENS. AND THIS BUDGET ALSO CONSISTS OF $2.56 MILLION IN REVENUE AND $2.756 MILLION IN EXPENSES. IT DOES NOT CONTAIN ANY PERSONNEL, AND THIS BUDGET WAS ALSO APPROVED ON JULY 11TH. ALRIGHT, THANK YOU. JULY 13TH, I'M SORRY, SAYING CORRECTED. JULY WHAT DAY? 13TH. 13TH. OKAY. ALRIGHT, ANY QUESTIONS FOR MS. MCKENZIE REGARDING ITEM FIVE B? IF NOT, I WOULD CONSIDER ITEM FIVE B AS RECEIVED. WE'LL MOVE TO ITEM [a. Consider the second and final reading of an ordinance for the proposed annexation of approximately 53.67 acres of land located at 5814 N SH 146, the northeast corner of N SH 146 and FM 1405.] SIX A, WHICH IS PROPOSED ANNEXATION APPROXIMATELY 53.67 ACRES OF LAND AT 58 14 NORTH STATE HIGHWAY 1 46. GOOD EVENING MAYOR AND MEMBERS OF THE COUNCIL. RYAN , ASSISTANT DIRECTOR OF PLANNING DEVELOPMENT SERVICES, UH, FOR YOU THIS EVENING IS JUST A REQUEST, UH, FROM STAFF, UH, FOR AN ADDITIONAL UP TO 90 DAYS OF CONTINUANCE ON THIS ITEM. WE ARE CONTINUING TO WORK WITH THE APPLICANT. WE DO BELIEVE THAT, UM, WE WILL, UH, HOPEFULLY BE ABLE TO MOVE FORWARD WITH, UH, THIS ANNEXATION PROBABLY WITHIN THE NEXT SIX TO EIGHT WEEKS. BUT WE ARE REQUESTING AN UP TO 90 DAY CONTINUANCE, UH, ON THIS ITEM, UH, TO CONTINUE THAT WORK. OKAY. I WOULD ENTERTAIN A MOTION FOR, I GUESS, UM, TABLING THIS ITEM FOR UP TO 90 DAYS. ITEM SIX A AND B, I WOULD ASSUME MOTION WE SUSPEND SIX A AND B FOR UP TO 90 DAYS. SECOND, NO MOTION TO SECOND. ANY QUESTIONS OR COMMENTS? ALL THOSE IN FAVOR OF THE SUSPENSION OF ITEM SIX A AND B FOR UP TO 90 DAYS, PLEASE SAY AYE. AYE. THOSE OPPOSED? WE'LL MOVE ON [a. Consider an ordinance amending Chapter 30 "Emergency Services", Article III "Emergency Medical Service", Division 3 "Services", Section 30-153 "Fees" of the Code of Ordinances, Baytown, Texas, to update fees for Emergency Medical Services. ] TO ITEM SEVEN A IS TO CONSIDER AN ORDINANCE AMENDING CHAPTER 30 OF, UH, EMERGENCY SERVICES ARTICLE THREE, EMERGENCY MEDICAL SERVICE DIVISION THREE SERVICES SECTION 30 DASH 1 53 FOR FEES OF THE CODE OF ORDINANCES, BAYTOWN, TEXAS TO UPDATE FEES FOR EMS. CHIEF. GOOD EVENING, MAYOR AND COUNSEL. WE'RE GONNA SEE, WE GOT A COUPLE SLIDES TO PULL UP REAL QUICK. WE BROUGHT THIS TO YOU LAST MONTH, UM, DURING A WORK SESSION. WE TALKED ABOUT, UH, EMS SERVICE FEES AND EMS AMBULANCE BILLING. UM, WE'RE BRINGING TO YOU TODAY. PURPOSE OF THIS ONE IS, UM, EMS SERVICE RATE ADJUSTMENTS, UH, TO MEET THE CURRENT MARKET LEVELS. AND WE JUST HAVE A FEW SLIDES HERE. UM, JUST AS A REMINDER, THIS IS OUR CURRENT RATES. WE WENT OVER THESE, UH, LAST MONTH, AND THESE RATES WERE LAST ADJUSTED IN 2006. HERE'S A COMPARISON OF OTHER, UH, FIRE AGENCIES OR EMS AGENCIES WITHIN OUR, UH, AREA, UH, THAT, UM, HARRIS COUNTY AND TAMS COUNTY. UM, YOU CAN SEE BAY TOWN'S AT THE TOP. WE ARE THE LOWEST. AND THEN AT THE BOTTOM YOU CAN SEE THE MEDIAN RATES THAT WE TALKED ABOUT. JUST A QUICK REMINDER THAT, UM, ANY ADJUSTMENTS ON THESE RATES DO NOT AFFECT MEDICARE MEDIC MEDICAID. THOSE RATES ARE FIXED. UM, THESE ARE THE RATES FOR MEDICARE MEDIC MEDICAID. AS YOU CAN SEE, THEY HAVE ADJUSTED OVER TIME. THEY ADJUST JUST [00:45:01] SLIGHTLY EACH YEAR. AND OF COURSE, OURS HAVE NOT BEEN ADJUSTED. AND THEN THIS IS OUR RECOMMENDATION, ADJUSTING THE EMS SERVICE RATES, UH, TO THE CURRENT MARKET LEVELS. THE PROPOSAL IS AT, UM, IS OVER THERE ON THE RIGHT SIDE, AND WE'VE GOT THE, UH, MEDIAN IN THE MIDDLE THERE. SO EVEN WITH OUR PROPOSALS, WE STILL FALL, UH, BELOW ON MOST OF THOSE OF THE MEDIAN. AND, UH, WE'RE GONNA ANSWER ANY QUESTIONS YOU HAVE. OKAY. DO WE HAVE ANY QUESTIONS FOR CHIEF OR MR. DAL DALBY? I GUESS, UH, FOR ITEM SEVEN A, THEY'LL NOT, I GUESS I ENTERTAIN A MOTION FOR APPROVAL OF ITEM SEVEN A AS PRESENTED, APPROVE SEVEN A AS PRESENTED SECOND MOTION, SECOND QUESTIONS OR COMMENTS? ALL THOSE IN FAVOR, SEVEN A AS PRESENTED, PLEASE SAY AYE. AYE. ALL THOSE OPPOSED [b. Consider an ordinance authorizing a purchase agreement with American Pioneer Investments Inc, for Parcel 5, located at 2900 Market Street, Baytown, Texas 77520 as part of the Market Street Revitalization Project.] I CARRIES. WILL GO INTO SEVEN B. CONSIDER ORDINANCE AUTHORIZED IN A PURCHASE AGREEMENT WITH AMERICAN PIONEER INVESTMENTS, INC. FOR PARCEL FIVE, LOCATED AT 2,900 MARKET STREET, BAYTOWN, TEXAS 7 7 5 2 0 AS PART OF THE MARKET STREET REVITALIZATION PROJECT. GOOD EVENING, MAYOR AND COUNSEL, MICHAEL LEACH, YOUR PUBLIC WORKS AND ENGINEERING DEPARTMENT. UH, THIS, I HAVE A BRIEF PRESENTATION FOR YOU THIS EVENING. UH, THIS, UH, PURCHASE WE'RE ASKING FOR IS ASSOCIATED WITH THE MARKET STREET REVITALIZATION PROJECT. UH, WE DISCUSSED THIS A FEW WEEKS AGO WHERE THE COUNCIL, UH, GRANTED PUBLIC NECESSITY FOR MARKET STREET. SO, UH, THE MARK STREET REVITALIZATION PROJECT, THE LIMITS ARE FROM BAYWAY DRIVE TO WEST STERLING. UH, HARRIS COUNTY IS IN THE LEAD FOR THIS PROJECT. IN OTHER WORDS, UH, THEY'RE MANAGING THE ENGINEERING ASSOCIATED WITH IT TO THIS POINT. ONE OF THE RESPONSIBILITIES THAT THE CITY HAS IS TO ACQUIRE THE RIGHT OF WAY OR PROPERTY NECESSARY FOR THE PROJECTS. AND AS WE DISCUSSED, UH, THE OTHER DAY, UH, THERE ARE EIGHT TRACKS THAT WE ARE REQUIRED TO PROCURE. SO HERE'S THE TRACK IN QUESTION. TONIGHT IT'S LOCATED AT, UH, 2,900 MARKET STREET, WHICH IS AT THE INTERSECTION OF MARKET STREET IN ERHART. UH, IT IS THE BAYTOWN MARKET, UH, GAS STATION AND CONVENIENCE STORE. UH, THE TOTAL COST FOR THIS PURCHASE IS $848,883 AND 84 CENTS. UH, THAT INCLUDES CLOSING COSTS. UH, THE CLOSING IS ANTICIPATED TO OCCUR WITHIN 30 DAYS OF COUNCIL'S APPROVAL AND THE OWNER, UH, 60 DAYS TO VACATE THE PROPERTY, UH, AFTER CLOSING. SO WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE. OKAY, QUESTION? YES, SIR. THAT'S A FORMER GAS STATION, CURRENTLY GAS STATION. YES, SIR. DO WE HAVE ENVIRONMENTAL TESTING TO MAKE SURE THAT WE'RE NOT IN BUYING A, THERE WAS A PRELIMINARY ENVIRONMENTAL TESTING ASSOCIATED WITH, WITH A MARKET STREET PROJECT. THAT'S WHAT AID ENABLED IT TO GET FUNDING. UH, ONCE THIS PROJECT IS PROCURED, UH, OR EXCUSE ME, ONCE THIS LOCATION IS PROCURED, UH, WE'LL HAVE TO GO THROUGH ADDITIONAL ENVIRONMENTAL TESTING. UH, ONCE WE PROCURE THE PRO, PROCURE THE SITE AND WE SECURE IT, THEN WE FIND OUT IT'S A HAZARDOUS SITE. SO WE'RE STUCK WITH IT. UH, YES, YES, WE ARE QUESTION 800,000 GAMBLE, BUT IT'S PART OF THE MARKET STREET. UH, I I UNDERSTAND PLAN AND WE'D HAVE TO ADJUST HOW MARKET STREET WENT AT THAT POINT IF WE WEREN'T ABLE TO DO OUR RIGHT OF WAY THERE. YES, SIR. YES, MA'AM. I THINK THE CITY MANAGER WAS ABOUT TO ANSWER MY QUESTION. SO I HEAR THAT IT'S FOR THE MARKET STREET REVITALIZATION PLAN, BUT WHAT EXACTLY ARE WE GONNA BE DOING WITH THE PROPERTY ONCE WE ACQUIRE IT? IS IT YOU'RE REDOING THE STREET? OR LIKE WHAT IS IT? UH, WHAT'S GOING TO HAPPEN AT THAT LOCATION IS THERE'S, THERE'S A TRAFFIC SIGNAL AT THAT LOCATION NOW, UH, IT'LL BE TURNED INTO A TRAFFIC CIRCLE AND THIS PORTION, UH, WHERE THE PROPERTY IS, WILL BE USED SORT OF AS A TURN LANE THAT GOES OFF OF ERHART AND ONTO MARKET STREET. SO IT'S PART OF A TRAFFIC CIRCLE DESIGN, THE TRAFFIC FLOW SITUATION. CORRECT. OKAY. ANY ADDITIONAL QUESTIONS, I GUESS TO, TO COUNCILMAN LESTER'S POINT? I MEAN, WHAT, I MEAN, IS THERE ANYTHING WE CAN DO TO TEST THIS BEFORE WE MAKE THIS 800,000 PLUS PURCHASE TO UNDERSTAND IF THERE'S ANY ENVIRONMENTAL CONCERNS WITH THE, THE GAS STATION THAT'S BEEN THERE? UH, WELL IT, SO A LOT OF THE, IT HAS TO DO WITH THE PROPOSED USE. UH, THE PROPOSED USE HERE WOULD BE FOR A ROADWAY TO GO OVER IT. SO, UH, THAT'S GENERALLY CONSIDERED A NON, UH, HOW CAN I PUT IT? UH, LOW RISK USE OF THE PROPERTY. UH, IT'S CURRENTLY USED AS PAVE, IT'S PAVED NOW, SO IT WOULD HAVE A SIMILAR USE. SO, BUT I'M NOT ADDRESSING YOUR QUESTION. YOUR QUESTION IS, IS THERE AN OPPORTUNITY TO TEST BEFOREHAND? UM, MY SUGGESTION TO THE COUNCIL AT THIS POINT IS THAT, UM, THERE HAS BEEN A LOT OF BACK AND FORTH WITH THIS OWNER AT THIS POINT. UM, AND IT HAS NOT ALWAYS BEEN FUN OR EASY. UM, THE, THE LAST HICCUP THAT WE HAD WITH THEM CAME DOWN TO A LIEN FROM 1988, RIGHT, 1988. UM, AND IT WAS $114 AND THEY MADE A HUGE STINK ABOUT $114. THAT'S WHY THIS HAS BEEN DELAYED FOR MONTHS OVER $114. AND, UM, I FEEL IF WE'RE GONNA DELAY IT MORE AT THIS POINT, WE'RE GONNA GO INTO AN IMMINENT DOMAIN, UM, [00:50:01] UH, PIECE. UH, SO THE COUNCIL NEEDS TO ASSESS THE RISK ON EITHER MOVING WITH THE MORE STUDIES FOR ENVIRONMENTAL PURPOSES OR ACQUIRING IT AND THEN, UM, SEEING IF WE'RE ABLE TO DO THE ROADWAY ON IT, IT IS GONNA BE A RISK CALL AT THIS POINT FOR THE COUNCIL? YES, MA'AM. I JUST WANTED TO ADDRESS MY COLLEAGUES. UM, I WAS THINKING OF A COUPLE OTHER PLACES IN TOWN WHERE WE, UM, THERE WAS PREVIOUSLY A GAS STATION AND NOW THERE'S A ROADWAY. THE ONE THAT IMMEDIATELY COMES TO MIND IS AT THE CORNER OF ROLLING BROOK AND THE FRONTAGE ROAD OFF OF, UM, THREE 30. AND THERE USED TO BE AN EXXON THERE, AND NOW IT'S, I THINK THE USAGE IS IMPORTANT AND FROM WHAT I KNOW ABOUT ENVIRONMENTAL, AND OF COURSE IT'S A RISK NO MATTER WHAT, BUT, UM, THE FACT THAT IT'S ONLY A ROADWAY BEING BUILT ON TOP, IT'S NOT A SCHOOL. UM, AND I'M GONNA MAKE AN ASSUMPTION THAT BECAUSE THERE IS A NEW SCHOOL BUILDING BUILT DIRECTLY ACROSS THE STREET, AND THEY WOULD'VE HAD TO HAVE PROPER ENVIRONMENTAL TESTING THAT, UM, IF THAT, I'M WILLING TO GAMBLE ON THIS ONLY BECAUSE, UM, I THINK THAT, I THINK IT'S A GOOD GAMBLE. I GUESS ONE THING, MY QUESTION WOULD BE UPON US ACQUIRING THIS PROPERTY, THERE, THERE IS GAS, YOU KNOW, THERE'S FUEL TANKS THAT ARE IN THE GROUND. DO WE LEAVE THEM THERE? DO WE TEST THAT? I MEAN, THEY'RE JUST GONNA BE COVERED 'CAUSE THERE'S DEFINITELY TANKS THERE. UH, THERE ARE PROCEDURES ASSOCIATED WITH THAT. THERE'S TESTING OF THE SOILS AROUND THERE. UH, AND THAT LEADS YOU DOWN A PATH TO, UH, DEPENDING ON LEVELS OF WHAT YOU DO TO, YOU EITHER REMOVE THE TANKS, REMEDIATE IT, OR PUT A, A BARRIER IN. I KNOW THAT'S DONE IN A LOT OF CASES, UH, SOILS BARRIER, UH, TO, UH, LIMIT THE AMOUNT OF MATERIAL THAT COULD POTENTIALLY SEEP UP. SO, UH, THERE ARE A VARIETY OF, UH, THINGS THAT CAN BE DONE IN LIEU OF REMOVING THE TANKS. NO, AND I JUST WANT US TO BE MINDFUL, OBVIOUSLY, THAT SOMETHING WILL HAVE TO MITIGATE THAT. I MEAN, ONCE YES SIR, IF THIS PROPERTY'S PURCHASED, WE HAVE TO DEAL WITH THAT EITHER WAY. SO, YES, SIR. ALRIGHT. MAY I SAY SOMETHING? YES, MA'AM. UM, UH, BECAUSE IT'S IN MY DISTRICT, I, I JUST WANTED TO GIVE MY COLLEAGUES AN OPPORTUNITY TO SPEAK FIRST ON IT. SO I APPRECIATE THE QUESTIONS BECAUSE THIS DID COME UP, UM, WITH THE NEIGHBORHOOD AS THIS WAS PRESENTED. AND SO WE FEEL VERY COMFORTABLE. UM, OBVIOUSLY THERE IS A RISK, UM, ONE WAY OR THE OTHER. UH, FOR, FOR THE MAJORITY, I, I THINK THE IMPROVEMENT THAT'S GOING TO BE DONE ON EARHART, WHICH IS VERY MUCH NEEDED, UM, KIND OF OUTWEIGHED, UM, SOME OF THE CONCERNS. UM, BUT WE ARE DEFINITELY KEEPING AN EYE ON IT. AND, AND IT'S KIND OF LIKE, UM, THE BROWNFIELD THAT WE HAVE OFF OF LEE DRIVE, BECAUSE EXXON IS NOT GONNA SELL IT TO SOMEONE THAT'S GONNA DIG IN AND THEY ACTUALLY WANTED SOMEONE THAT, THAT WOULD JUST DO A PARKING LOT, UM, AND ASPHALT OVER AND NOT ACTUALLY DIG THROUGH IT. SO THAT'S ONE OF THE THINGS THAT I LOOKED AT AS WELL. OKAY. THANK YOU FOR THAT INFORMATION. ALRIGHT, ANY OTHER ADDITIONAL CO QUESTIONS OR COMMENTS? IF NOT, I'D ENTERTAIN A MOTION. UM, MS. RADO FOR ITEM SEVEN B, MOVE TO APPROVE. SECOND, WE HAVE A MOTION TO SECOND. ANY QUESTIONS OR COMMENTS? ALL THOSE IN FAVOR OF SEVEN B AS PRESENTED, PLEASE SAY AYE. AYE. AYE. OPPOSED? ITEM CARRIES. THANK YOU. WE'LL MOVE ON TO [a. Consider a resolution authorizing an application submittal to the US Department of Transportation's FY2023 Safe Streets and Roads for All Grant Program on behalf of the Public Works and Engineering Department.] ITEM EIGHT A CONSIDER RESOLUTION AUTHORIZING AN APPLICATION SUBMITTAL TO THE US DEPARTMENT OF TRANSPORTATION'S, 23 SAFE STREETS AND ROADS FOR ALL GRANT PROGRAM ON BEHALF OF THE PUBLIC WORKS AND ENGINEERING DEPARTMENT, MR. MORAN. GOOD EVENING, MAYOR AND COUNSEL. UH, THIS APPLICATION IS TO GO FOR THE U, THE U-S-D-O-T. UM, AND THIS IS, UM, THIS IS A PLANNING, EXCUSE ME, THIS IS A PLANNING, UH, PLANNING GRANT, UM, THAT DOESN'T HAVE A REQUIREMENT, UM, FOR A MATCH BY THE CITY. OKAY, GREAT. ALRIGHT, ANY QUESTIONS OR COMMENTS REGARDING ITEM EIGHT A? IF NOT, ALL THOSE IN FAVOR OF EIGHT A PRESENTED, PLEASE SAY AYE OR EXCUSE. I TAKE AND ASSUMING I GET A MOTION, EXCUSE ME, LEMME GET A MOTION FOR ITEM EIGHT. A FIRST MOTION TO APPROVE. WE HAVE A MOTION A SECOND. SECOND. A MOTION SECOND. ANY QUESTIONS OR COMMENTS? ALL, ALL THOSE, UH, IN FAVOR. A A IS PRESENTED, PLEASE SAY AYE. A AYE. THOSE [9. CONSENT All Consent Agenda items listed are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Council Member requests, in which event the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda.] OPPOSED? WE'LL MOVE ON TO CONSENT. UH, IS THERE ANYTHING THAT NEEDS TO BE PULLED OF NOT? I'D ENTERTAIN A MOTION FOR CONSENT ITEMS A THROUGH Y MOVE TO APPROVE ITEMS NINE A THROUGH Y. SECOND MOTION. SECOND. ALL THOSE IN FAVOR OF THE CONSENT AGENDA AS PRESENTED, PLEASE SAY AYE. AYE. AYE. ALL THOSE OPPOSED CONSENT IS APPROVED. [10. MANAGER'S REPORT Notice is hereby given in accordance with Section 551.0415 of the Texas Government Code, the City Council of the City of Baytown may receive a report about items of community interest from City staff and/or a member of the City Council, but no action or possible action shall be taken or discussed concerning the subject of such report, except as provided by Section 551.042 of the Texas Government Code.] WE ON TO OUR MANAGER'S REPORT? YES, SIR. THANK YOU MAYOR. UH, MAYOR AND COUNCIL. I HAVE A FEW THINGS TO, TO GO OVER JUST, UH, BRIEFLY, UH, BUT I WANT TO FIRST THANK THE FINANCE DEPARTMENT, MS. GINA, MS. MONICA, MS. TERESA. UH, Y'ALL HAVE DONE A WONDERFUL JOB GETTING THE BUDGET, UH, PREPARED AND PUT TOGETHER AND, UH, THE BOOKS LOOK WONDERFUL. THANK YOU FOR ALL THE HARD WORK. THANK YOU FOR THE DIRECTORS AND THE, UH, UH, OTHER EMPLOYEES THAT HELPED PUT ALL THIS TOGETHER. I KNOW THIS IS, UH, HAS BEEN A DIFFERENT YEAR WHEN WE LOOKED AT THE BUDGET AND, UH, [00:55:01] JUST THANKS FOR ALL THE, THE EFFORT THAT WENT INTO THIS. SO, HAT'S OFF. UM, I WANT TO RECOGNIZE DIVISION CHIEF, UH, JAMES MILLER COMPLETED HIS ASSOCIATE'S DEGREE IN FIRE SCIENCE FROM SAN JACINTO COLLEGE. UH, SO GREAT JOB WITH THAT. AND THEN I HAVE A FEW THINGS FROM THE PARKS DEPARTMENT, UH, THAT I'D LIKE TO READ. AND, UM, WE HAVE A FEW THINGS. UH, THE CITY OF BAYTOWN AQUATICS FILLED THE TWO TEAMS, UM, AND, UH, AND THE COMPETITION. THEY DID A RELAY RACES, SIMULATED RACE, UH, RESCUES, AND THEY SORTED THEIR LIFEGUARDS, EXCUSE ME, AND, UH, TESTING THEIR LIFEGUARD SKILLS. AND WE HAD A SECOND PLACE IN CPRA SECOND PLACE IN SPINAL INJURY SCENARIO. THIRD PLACE IN SPINAL INJURY SCENARIO. FOURTH PLACE AND FIFTH PLACE. UH, AND THE TEAMS WERE THE UNDERCURRENTS IN THE PIRATES BAY PIRANHAS. IN ADDITION TO THAT, WE HAD OUR, UH, PARKS RECREATION, UH, SUMMER TRACK PROGRAM COMPETED IN THE REGIONAL TRACK MEET IN TEXAS CITY ON JULY 11TH AND 12TH. THEY HAD 37 TOP 10 FINISHERS, WHICH IS, UH, PRETTY AMAZING ACTUALLY, UH, THAT HAS QUALIFIED THEM FOR THE TEXAS AMATEUR ATHLETIC FEDERATION SUMMER GAMES IN BROWNSVILLE, TEXAS, WHICH IS WHERE SOME OF THEM ARE AT RIGHT NOW. SO HATS OFF TO THEM. UH, THERE WERE 20 PARTICIPANTS ACROSS ALL EVENTS. AND, UM, THAT'S IT. SO, UH, GREAT JOB TO THE PARKS AND REC TEAM ON BOTH THE AQUATICS AND THEN MR. MIKE LEACH THAT JUST SPOKE. UM, I WANT TO RECOGNIZE, UH, HIM AND HIS EFFORTS. HE, UH, UM, WAS RECENTLY ELECTED AS THE PRESIDENT OF THE SOUTHEAST BRANCH OF THE TEXAS PUBLIC WORKS ASSOCIATION. SO, UH, GREAT JOB, MIKE, AND, UH, YOU KNOW, KEEP BRINGING MORE INFLUENCE AND, UH, MAKING THINGS HAPPEN WITH OUR PUBLIC WORKS TEAM AS WELL. SO THAT'S ALL I HAVE MAYOR AT THIS TIME. THANK YOU MR. CITY MANAGER. ALRIGHT, NEXT [11. COUNCIL MEMBER DISTRICT REPORT] WE HAVE OUR COUNCIL MEMBER DISTRICT REPORT, UH, FROM DISTRICT NUMBER THREE. I HAVE COUNCIL MEMBER KENNETH KEN GRIFFIN. YOUR FIRST ONE, RIGHT? IT'S MY FIRST ONE. ALL RIGHT. GETTING BROKEN IN LOOKING. LOOK FORWARD TO IT. UM, IT SAYS KENNETH UP HERE. IT'S KENRICK. YEAH, THAT'S WHAT SAYS I MET MY MOM. GET, GET ON ANYBODY. UH, SHE'LL COME UP HERE. ANYWAY, , CALL MY MOM. SO PROJECTS, UM, SOLID WASTE PROJECT, UH, THE TREE TRIMMING PROJECTS ON, UH, LAKEWOOD DRIVE, BURNETT DRIVE, NORTH BURNETT DRIVE, SOUTH BURNETT DRIVE AND GREENBRIER ARE 100% COMPLETE STORMWATER MAINTENANCE. UM, PUBLIC WORKS HAS CUT ALL THE DITCHES AND CLEANED OUT ALL THE DRAIN PIPES AND THE LAKEWOOD SUBDIVISION IN BAYWAY DRIVE. THAT'S A HUNDRED PERCENT COMPLETE AND IT'S READY FOR, UH, THE BRUNT OF HURRICANE SEASON. SO WE THANK PUBLIC WORKS FOR THAT. UH, STREETS MAINTENANCE ONGOING, UH, PUBLIC WORKS IS CURRENTLY REPAIRING ASPHALT BREAKDOWNS ON BAYWAY DRIVE FROM BAY VILLA TO, UH, TO ARBOR, UH, STREET MAINTENANCE SCHEDULE. UH, RED BUD, UH, LANE, UH, 960 SQUARE FEET OF CONCRETE PANELS THAT'S SCHEDULED FOR REPAIR, ASPHALT REHAB AND DITCH MAINTENANCE ON, UH, CONLEY STREET ROAD. CONNOLLY SHEPHERD ROAD, SORRY. AND THOMAS, UH, PUBLIC WORKS WILL CUT THE DITCH DITCHES AND CLEAN THE PIPES BEFORE STARTING ASPHALT REHAB. UM, THEY'RE SCHEDULED TO START THE OCTOBER, IN OCTOBER AFTER THE WATER AND SEWER LINE PROJECT IS COMPLETE. UM, I'LL JUST SKIP DOWN HERE A LITTLE BIT FOR TIME CONSTRAINTS. UH, GARTH ROAD. UH, THE CITY UTILITY RELOCATION CONTRACTOR BEGAN WORK THIS MONTH TO RELOCATE CITY WATER AND WASTEWATER INFRASTRUCTURE IN THE AREA BEGINNING JUST NORTH OF ARCHER ROAD. SO ABOUT, AS OF RIGHT NOW, IMPACTS TO TRAVELING PUBLIC HAVE BEEN MINIMAL, AS ONLY SHORT AS SHORT DURATION, UH, LANE CLOSURES OR HAVE BEEN REQUIRED. AND MOST OF THOSE HAVE BEEN JUST FOR EQUIPMENT. SO I HAVEN'T SEEN, RECEIVED MUCH EMAILS OR YELLING ABOUT IT. SO I'LL TAKE, UH, I'LL GO ON THAT FOR NOW. I TAKE THE, WHEN I'LL TELL, I TAKE THE WHEN. ABSOLUTELY. THANK YOU. UM, EVENTS, UM, EARLIER IN MAY THIS YEAR, IN MAY, I ATTENDED MY FIRST CIVIC ASSOCIATION MEETING HELD BY THE LAKEWOOD CIVIC ASSOCIATION. UM, CITY MANAGER, JASON REYNOLDS AND MEMBER REPRESENTATIVES FROM EXXON WAS ALSO THERE IN ATTENDANCE. I GOT A LOT POSITIVE FEEDBACK ON THE, ON THE MEETING FROM RESIDENCE. UM, I'M LOOKING FORWARD TO, UH, SPEAKING TO THEM AGAIN IN THE NEAR FUTURE. UM, BAYTOWN NATURE CENTER THAT'S ON MY SIDE OF TOWN, OUR BEAUTIFUL JEWEL IN THE WEST. UM, IN EARLY MAY, THE NATURE CENTER KICKED OFF THEIR SEQUEL TO MILE CONCERT, WHICH WAS ROCKING, UM, ON MAY 13TH. THE NATURE CENTER HOSTED, UH, [01:00:01] THE RUN FOR WILDLIFE, WHICH I DID NOT RUN. . UM, JUNE 3RD, THE NATURE CENTER WAS, UH, HAD THEIR, UH, OTCO FESTIVAL, WHICH WAS A LOT OF FUN. UM, UH, UH, THE CRAWFISH WAS, UH, PROVIDED BY BIG TIME CRAWFISH. THE LINE WAS TOO LONG, SO I DID NOT GET IN IT, BUT I HEARD IT WAS GOOD AND I'M STILL UPSET 'CAUSE I DIDN'T GET MY CRAWFISH FIXED THIS YEAR, UM, JUNE 5TH, UH, WE SAW THE BEGINNING OF THE SUMMER SCIENCE CAMPS, UH, VERY EDUCATIONAL PROGRAM. THE WEEK LONG SUMMER CAMP IS CURRENTLY AVAILABLE AND IT'S UP AND RUNNING UNTIL THROUGH AUGUST 11TH. IT'S HELPING GRADES, UH, FROM FIR UH, FIRST ATTEMPT. IT'S A GREAT OPPORTUNITY FOR YOU TO LEARN ABOUT LOCAL WILDLIFE CONSERVATION AND KEEP KEEPS EDUCATION PROCESS GOING THROUGH THE SUMMER MONTHS. UM, VERY LAST RECOGNITION, UH, SHOT OUT THE LAKEWOOD POOL, OPENED ITS GATES IN MAY, UH, 27TH, A MEMORIAL DAY WEEKEND WITH A FREE DAY AT THE POOL AND BURGER'S PROVIDED BY BAY TOWN'S FAMOUS SUN BURGER. THE LAKEWOOD POOL HAS BEEN IN OPERATION THE LONG AS BAY TOWN'S. BEEN A CITY THAT'S 75 YEARS IS CURRENTLY RUN, RUNNING AND OPERATING BY FRANK AND GINGER MCKAY, JAMES SPRINGER AND THEIR 16-YEAR-OLD NEPHEW. AND ROBERT LEE, GRAD HIGH SCHOOL GRADUATE, GO GANDER STUDENT, UH, UH, LANCE LACOSTE. MM-HMM TOGETHER WITH A TON OF HARD WORK AND DEDICATION ALONG WITH THE SUPPORT OF EXXONMOBIL AND LOCAL DONATION. THEY'VE OVERCOME SOME OBSTACLES AND SETBACKS DUE TO THE IMPACT OF THE PA OF PAST HURRICANES TO KEEP THE POOL OPERATIONAL AND THE CITY FOR THE CITY TO ENJOY, UH, FOR THE CITY TO ENJOY, UH, FOR, FOR THE WHOLE CITY OF JOY. SO I ALLY, I JUST WANT TO THANK THEM, UH, FOR KEEPING SUCH A, A PIECE OF PART OF MY CHILDHOOD HISTORY GOING AND, UM, FOR THE WHOLE CITY TO ENJOY THAT NICE POOL. AND THAT'S ALL I HAVE FOR MY REPORT. ALRIGHT. THANK YOU COUNCILMAN. JUST MR. OH, HE WANTS TO OH, THANK YOU. A NEW, WHAT'S THAT? NEW PLAT? YEAH, A NEW PLAT FOR SAN JACINTO MARKETPLACE WAS FILED THIS AFTERNOON. SO WHAT DOES THAT MEAN? BREAKING NEWS NEWS. BREAKING NEWS. NEWS. SOMEONE IS PLOTTING TO PUT SOMETHING THERE. THEY'RE THEY'RE PLOTTING. YEAH. PLOTTING. PLOTTING PLATTING OR PLOTTING PLOT. PLOTTING PLATTING. OKAY, SO THEY'RE PLOTTING. THEY COULD BE PLOTTING TOO. YEAH, THEY COULD BE PLOTTING TO PLAT. OKAY. SO BREAKING NEWS. THANK YOU. THAT'S THE MALL. THAT'S THE MALL. RIGHT. SO THAT'S, THAT'S, THAT'S A GOOD DEVELOPMENT THERE. I'M HAPPY TO REPORT THAT. THANK YOU. AND YOU HAD THE RED SEAS HOPING AT THE POOL AS WELL. OH, A LOT GOING ON AT THAT POINT. SO GET OUT TO THE POOL. EVERYBODY, EVERYBODY NEEDS TO GO TO THE POOL. MAKE A QUICK COMMENT. SURE. ABSOLUTELY. THERE, THERE WAS A REPORT MADE EARLIER BY FORMER MAYOR CALVIN BONINGER THAT CONCERNING ONE OF OUR COLLEAGUES. WELL, AND, AND I JUST WANTED TO KNOW, LET YOU KNOW THAT THAT ALSO PROBABLY GET A REPORT THAT I KNOW SOME OF THE FOLKS THAT HE FISHES WITH. SO WHEN HE SAYS HE'S CAUGHT A LOT OF THINGS OUT OF THE BAY, THEY WOULD PROBABLY DISAGREE WITH THAT. TO MY DEFENSE, HE'S GONE TOO. TO MY DEFENSE, THOSE ARE RACCOONS, NOT . ALRIGHT, THANK YOU COUNCILMAN FOR THE UH, THE DISTRICT UPDATE. UH, WE WILL MOVE ON TO [12. EXECUTIVE SESSION] OUR NEXT FEW ITEMS, WHICH IS 12 A AND B. UH, SO WE WILL NOW RECESS INTO AND CONVENE AN EXECUTIVE SESSION PURSUANT TO ION GOVERNMENT CODE SECTION 5 5 1 0.071 TO SEEK THE ADVICE TO THE CITY ATTORNEYS REGARDING PENDING OR CONTEMPLATED LITIGATION INVOLVED IN THE CITY OF BAYTOWN AND OR WAIVERS OF POTENTIAL CONFLICTS OF INTEREST INVOLVING OUTSIDE COUNSEL. ALSO SECTION 5 5 1 0.071 TO CONSULT WITH THE CITY ATTORNEY IN SECTION 5 5 1 0.072 DELIBERATE REGARDING REAL PROPERTY AND OR SECTION 5 5 1 0.087 TO DELIBERATE REGARDING AN ECONOMIC DEVELOPMENT NEGOTIATION. UM, IT'S SEVEN 40 SEC SO, AND I'LL RECONVENE THIS OPEN MEETING OF THE BAYTOWN CITY COUNCIL AND ANNOUNCE IN ACCORDANCE WITH SECTION 5 5 1 0.102 OF THE TEXAS GOVERNMENT CODE. NO ACTION WAS TAKEN IN EXECUTIVE SESSION. BEING THAT IS THERE ANYTHING ELSE? CITY MANAGER, ANYTHING ELSE? WANNA MAKE SURE IT'S ALRIGHT BEING THAT BAY BAYTOWN CITY COUNCIL HAS ADDRESSED ALL POSTED AGENDA ITEMS. THIS MEETING IS NOW ADJOURNED. JASON. * 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.