Oct 25, 2022 Town Council

ALL RIGHT, GUYS.

[00:00:05]

[CLOSED EXECUTIVE SESSION (4:00 P.M.) *A portion of this video is without audio*]

WE HAD A LITTLE BIT OF A TECHNICAL DELAY, BUT WE'RE GOING TO MOVE AHEAD WITH OUR WORK SESSION, WHICH WAS TO START AT 5:30.

WE'RE STARTING 5:36.

UP IS TROY TO DISCUSS TOWN HALL LEASE EXTENSION.

THANK YOU MAYOR. THANK YOU COUNCIL. WHAT I WANT TO DO TODAY IS, WE ARE IN OUR FIVE YEAR TERM OF OUR TEN YEARS AND WANTED TO GIVE YOU GUYS JUST A QUICK WHERE WE ARE AND GIVE YOU AN UPDATE ON KIND OF HOW THE LEASE WAS WORKED OUT AS WELL AS GIVE SOME OPTIONS WITH SOME POTENTIAL EXTENDING IT BEYOND THE 2028 YEAR, WHICH WOULD BE OUR 10TH YEAR AS WELL.

SO. I'LL HAVE JASON, PULL THAT UP FOR ME REAL QUICK.

IT'S UP. SO THINGS THAT YOU GUYS MAY WANT TO CONSIDER TODAY IS WE CAN STAY WITH OUR CURRENT LEASE UNTIL 2028.

[WORK SESSION – Call to Order (5:30 P.M.)]

AND THEN AT THAT POINT WE CAN RENEGOTIATE THE WHOLE THING OR DECIDE WHAT WE'RE GOING TO DO AFTER THAT.

THERE'S ALSO AN OPPORTUNITY TO LOOK AT EXPANDING THE CURRENT SPACE THAT WE'RE IN NOW ON THE SECOND FLOOR TO ADD ANOTHER, ABOUT A LITTLE OVER 3000 SQUARE FEET.

AND DO WE WANT TO CONSIDER GOING INTO A SEVEN YEAR LEASE STARTING IN 2023 TO EXTEND IT TO 2030 OR ENTER INTO A TEN YEAR RENEWAL THAT WOULD TAKE US TO 2033.

AND WE'LL RUN THROUGH EACH ONE OF THOSE OPTIONS AND THE COST IMPACT AND THAT TYPE OF THING.

SO THAT'S WHAT DIRECTION WE'RE LOOKING FOR TODAY.

SO IF YOU LOOK AT OUR CURRENT SPACE, THE AREA IN RED IS WHAT WE CURRENTLY OCCUPY TODAY.

THE CURRENT, THE SPACE THAT'S IN BLUE, CIRCLED IN BLUE, THAT'S THE FITNESS CENTER.

AND THE ADDITIONAL 3000, LITTLE OVER 3000 SQUARE FEET IS WHAT'S IN YELLOW.

SO RIGHT NOW, IT'S NOT OCCUPIED.

IT'S JUST RIGHT BEHIND OUR STORAGE CLOSET.

SO IT'S NOT OCCUPIED BY ANYBODY AT THIS TIME.

IT'S JUST VACANT THAT SPACE.

SO THAT'S THE, WHEN WE TALK ABOUT ADDITIONAL SPACE, THAT'S THE SPACE WHERE WE WILL BE REFERRING TO.

IN 2017, WHEN WE NEGOTIATED THE LEASE, WE WERE OVER ACROSS THE STREET OVER BY THE MARRIOTT.

WE WERE ROUGHLY AT ABOUT 13,000 SQUARE FEET.

IF YOU GO BACK AND LOOK AT THAT SPACE, THERE WAS A HALLWAY BETWEEN THE COURT AND THE COUNCIL CHAMBERS AND THE ADMIN STAFF AS WELL.

SO IT WASN'T VERY FUNCTIONAL AS FAR AS THE TEAM ENVIRONMENT.

SO AT THAT POINT WE WERE CONTINUING TO, THE COMMUNITY WAS GROWING, THE STAFF WAS GROWING, AND SO WE MOVED OVER TO THIS AREA IN 2017, WHICH INCLUDED 20,580 SQUARE FEET AND ALSO INCLUDED A TEN YEAR COMMITMENT.

AS WE WERE NEGOTIATING THAT LEASE THEY TALKED ABOUT DOING THE AMENITIES, BUT THEY AT THAT POINT THEY WERE NOT IN PLACE.

AND SO WHAT WE HAD SAID IS THAT ONE YEAR AFTER THOSE AMENITIES ARE COMPLETED, YOU CAN ADD TO OUR COMMON SPACE.

SO WHEN YOU SEE THE COST, THE COST IS GOING TO BE BASED ON 22,000 SQUARE FEET VERSUS THE 20 STARTING THIS YEAR IN NOVEMBER.

SO I'LL TALK ABOUT THAT AND HOW THAT AFFECTS THE PRICE AS WELL.

SO THAT'S WHY.

TROY, CAN YOU GO BACK? YOU SAID 3000 SQUARE FEET AND IT SAID 4700 ON THE ON THE MAP THAT YOU SHOWED US.

ONE SLIDE PRIOR.

BECAUSE WHAT WE DID IS WHEN WHEN THE LANDLORD PROPOSED THAT TO US.

IF YOU GO BACK TO THAT SLIDE, THE REASON WHY THAT'S A LITTLE BIT HIGHER.

SEE IF I CAN GO BACK.

JASON, CAN YOU HELP ME OUT? GO BACK A SLIDE. SO THAT INCLUDED THE FREIGHT, INITIALLY.

ONE MORE SLIDE, PLEASE.

THERE YOU GO.

4744. RIGHT. AND THAT'S BECAUSE THAT INCLUDED THE FREIGHT ELEVATORS AT THE END WITH THE TWO BIG X'S AND THAT LONG CORRIDOR.

AND WE SAID NO, WHY DO WE WANT TO PAY FOR THAT? WE CAN'T USE IT. THANK YOU.

THAT GOT REDUCED DOWN TO THAT 3000.

ALRIGHT JASON GO AHEAD.

SO THAT WAS SO THAT WAS THE TEN YEAR LEASE.

WE ALSO DEFERRED THE FIRST YEAR OF LEASE.

AND SO THAT'S WHY YOU SEE IT GOING TO MAY OF 2028 VERSUS END IN 2027.

SO WE DEFERRED THAT FIRST BASE LEASE COST, BUT WE DID PAY THE UTILITIES DURING THAT FIRST YEAR PERIOD.

WHAT HAPPENED? AND SO THAT FIRST YEAR I BASICALLY STARTED OUT AT $16 PER RENTABLE SQUARE FEET, AND THEN IT WENT IN INCREMENTS OF $0.50 PER YEAR UP UNTIL THAT 28, 2028 TIME FRAME.

OUR UTILITIES, YOU LOOK AT OUR ELECTRICAL, IT'S LOCKED IN AT $2.10 PER RENTAL SQUARE FEET, AND THEN THE O&M COST ARE LOCKED IN AT $8 PER SQUARE FOOT. TO GO ALONG WITH THAT.

AND THEN SO WE KIND OF STARTED LOOKING AT HOW LONG DO IT WOULD WE WANT TO EXTEND THE LEASE? IS IT A SEVEN YEAR OR IS IT A TEN YEAR OR DO WE HOLD WHERE WE'RE AT TODAY?

[00:05:02]

SO IF YOU LOOK AT.

JASON, CAN YOU GO HEAD AND ADVANCE THAT ONE? AND SO WHERE WE'RE AT TODAY IS WE'RE AT $18 A SQUARE FOOT THIS YEAR.

AND ALSO A LOT OF THESE CALCULATIONS OUR LEASE GOES FROM, IF YOU LOOK AT A CALENDAR YEAR, WE'D GO FROM JANUARY TO MAY, THAT LEASE RATE, BASE RATE, AND THEN FROM JUNE UNTIL DECEMBER, THAT'S A DIFFERENT BASE RATE BECAUSE THAT'S JUST WHERE THE LEASE RENEWAL HAPPENED TO OCCUR. SO IF YOU LOOK AT THAT, WE'RE AT 18 TO $18 PER SQUARE FOOT.

WE'RE CURRENTLY NOW IN THE MONTH OF NOVEMBER, WE JUMPED UP TO THAT 22, 250.

AND THEN OUR ELECTRICAL COST AND OUR OPERATING COSTS, WE DO OUR RECONCILIATION AT THE END OF THE YEAR BASED ON WHAT THOSE REAL COSTS ARE.

AND THEN OUR ANNUAL BASE RENT IS $33,375.

I MEAN, I'M SORRY, THAT'S OUR MONTHLY.

AND THEN OUR ANNUAL IS JUST OVER $400,000.

AND SO WE INCREASE THAT SQUARE FOOTAGE TO 22 TO 5.

AND SO OUR ESTIMATED ANNUAL RENT, INCLUDING O&M, IS ABOUT 652.

THINGS THAT AREN'T INCLUDED IN OUR LEASE.

WHEN WE HAVE MEETINGS OVER AT THE CONFERENCING CENTER, WE RENT THOSE SPACES OUT.

WE DO HAVE OUR OWN AC UNIT THAT'S ASSOCIATED WITH OUR SERVER ROOM, SO THAT'S OURS.

SO WHEN WE DO MAINTENANCE ON THAT, THAT'S OUR COST AND THAT COMES OUT OF THE GENERAL FUND AS WELL AS ANY ADDITIONAL CLEANING WE MAY REQUIRE.

SO IF WE SPILL A BUNCH OF STUFF ON THE CARPET AND WE'VE GOT TO HAVE COME IN AND CLEAN THAT.

SO THOSE ARE SOME THINGS THAT ARE NOT INCLUDED IN THE LEASE.

ALL RIGHT, JASON, GO AHEAD. SO WE LOOKED AT THREE DIFFERENT OPTIONS.

JERRY, CAN YOU GO HEAD AND PASS THAT OUT? WE PUT TOGETHER A SPREADSHEET.

IT WAS TOO MUCH TO PUT ON A SLIDE.

SO WE PUT IT ON 11, A LARGE SHEET OF PAPER FOR YOU GUYS.

AND SO IF YOU LOOK AT THAT FIRST COLUMN, LINE ONE THROUGH LINE SEVEN, THOSE ARE OUR, THAT'S WHAT WE PAY TODAY. SO IF YOU'LL NOTICE, IT STARTS AT 18 AND IT INCREASES $50.50 EACH YEAR AFTER THAT.

AND THEN AND SO AGAIN.

THAT WOULD TAKE US TO 2028.

IF WE WANTED TO STAY STATUS QUO THAT'S WHAT WHAT WOULD BE OUR NET COST.

AND THEN ON LINE SEVEN, ALL THE WAY TO THE END WHERE IT SAYS RENT AND O&M.

SO THAT GIVES YOU YOUR TOTAL COST THAT WE WOULD PAY UP UNTIL 2028.

AND THEN WE MOVE IN TO OPTION A.

SO OPTION A WOULD TAKE YOU THROUGH 2023 ALL THE WAY TO 2033, BUT THIS ALSO INCLUDES THAT ADDITIONAL 3284 SQUARE FEET THAT WE TALKED ABOUT THAT WAS IN YELLOW.

AND SO IF YOU LOOK UP UNTIL 2028, IT RUNS INTO 50 CENT INCREMENTS.

AND THEN WHAT WE HAD TO DO IS KIND OF LOOK AT THAT SPLIT YEAR AND KIND OF GET AN AGGREGATE AVERAGE.

AND THEN WE TOOK THAT FORWARD WITH OUR, WHAT THEY'RE PROPOSING IS TO HAVE A 3% INCREASE EVERY YEAR, THEREFORE AFTER 2028.

SO YOU'LL SEE THAT'S A 3% INCREASE TO GO ALONG WITH THAT.

AND THEN THAT WOULD ALSO APPLY TO THAT ADDITIONAL SPACE AS WELL.

THE ADDITIONAL SPACE STARTS AT 1950 PER SQUARE FOOT.

SO THEY LOOK AT THAT, THEY LOOK AT THAT AS TWO DIFFERENT SPACES.

SO THAT CALCULATES THAT.

ALSO WITH A TEN YEAR LEASE THROUGH 2033, THEY WOULD GIVE US A TENANT IMPROVEMENT ALLOWANCE OF $70 PER SQUARE FOOT, WHICH COMES OUT TO ABOUT 229,000 TO UPGRADE THAT SPACE.

NOW, IF WE UPGRADED THAT SPACE, THAT'S GENERALLY JUST THE CARPET, THE WALLS, THE PLUGS, THE ELECTRICAL WORK, THAT TYPE OF THING.

WE WOULD BE RESPONSIBLE FOR PHONES, FURNITURE, IT DROPS THOSE TYPE OF THINGS.

SO WE HAD PUT THAT IN THE BUDGET AT ABOUT 150,000 PLUS BETWEEN 150,000 AND 200,000, IF THAT'S SOMETHING THAT THE COUNCIL WANTED TO CONSIDER.

IN OPTION B, YOU HAVE A SEVEN YEAR OPTION.

LET'S TAKE US TO 2030 AND KIND OF THE SAME METHODOLOGY .

SO UP UNTIL 2028, IT GOES IN INCREMENTS OF $0.50.

IT ALSO INCLUDES THAT ADDITIONAL SPACE.

WITH THAT, WITH A SEVEN YEAR LEASE, THEY WOULD START THAT ADDITIONAL SPACE AT $20 SQUARE FOOT VERSUS 19.50.

BECAUSE OBVIOUSLY A LESSER TERM.

BUT THEN THAT GIVES YOU KIND OF SOME TOTALS THERE.

IF WE OPTED, IF THE COUNCIL CHOSE TO OPT TO GO AHEAD AND EXTEND TEN YEARS WITH NO ADDITIONAL SPACE, THAT'S YOUR OPTION C.

SO YOU HAVE AGAIN, WHAT WE HAVE TODAY IS THAT $0.18 AND THEN IT INCREASES $0.50 UP UNTIL 2028, AND THEN IT GOES ROUGHLY ABOUT $24 A SQUARE FOOT.

BUT AGAIN, WE KIND OF SPLIT THE GEAR.

SO THERE'S AN AVERAGE SITTING THERE RIGHT NOW AND THEN 3% INCREASE YEARS AFTER THAT.

SO WE WANTED TO KIND OF GIVE YOU GUYS THAT SNAPSHOT.

[00:10:02]

WHEN WE TALK ABOUT OFFICE SPACE AND EXPANDING OFFICE SPACE, YOU KNOW, THERE'S A COUPLE OF THINGS.

WE'VE GOT A NEW ACCOUNTING PERSON STARTING.

WE ARE CURRENT ACCOUNTING OFFICES.

THEY'RE IN CUBICLES. THERE'S FOUR FOLKS IN THERE.

SO I KNOW THERE'S WE'RE TRYING TO HIRE AN ACCOUNTING PERSON FOR THE SCHOOL.

SO WHERE WOULD THEY FALL IN AND HOW WOULD WE SQUEEZE THOSE CUBICLES TOGETHER AND MAKE THAT WORK? STORAGE IS THE BIG CHALLENGE FOR US NOW AS WELL.

SO THAT TOP PICTURE KIND OF SHOWS YOU THE ACCOUNTING OFFICE.

THE BOTTOM PICTURE IS OUR EVENT COORDINATOR AND SHE STORES A LOT OF STUFF IN HER OFFICE FROM EVENT TO EVENT TO EVENT.

JASON, GO AHEAD AND PASS THE NEXT SLIDE.

AND THIS IS OUR STORAGE ROOM.

EVERYTHING THAT'S IN THERE IS EVERYTHING FROM OUR PROMOTIONAL THINGS THAT JOHN SASSER WORKS WITH TO SEASONAL DECORATIONS TO JUST INVENTORY OF THINGS THAT WE KEEP FROM CLEANING SUPPLIES TO PAPER SUPPLIES TO JUST THINGS WE NEED THROUGHOUT THE YEAR.

AND THEN THE LOWER RIGHT HAND IS AN OFFICE THAT IS ALSO THE I.T.

STORAGE EQUIPMENT CLOSET, IF YOU WILL.

SO ALL THE LATEST EQUIPMENT THAT THEY HAVE TO KEEP IN INVENTORY, THINGS THAT THEY'RE GOING TO PUT IN AN AUCTION, BUT THEY NEED A PLACE TO PUT IT UNTIL THEY GET ENOUGH ITEMS. SO THOSE ARE SOME STORAGE CHALLENGES WE HAVE.

GO AHEAD, JASON. AND SO IF YOU LOOK AT THAT ADDITIONAL SPACE POTENTIAL OPTIONS AND THIS IS JUST THE FIRST BLUSH AT THIS, THAT YELLOW SPACE THAT WE TALKED ABOUT, THAT DOTTED LINE WAS THAT LONG CORRIDOR.

AND TO THE RIGHT OF THAT WOULD BE THE GYM AND TO THE LEFT WOULD BE THE TOWN HALL CURRENT OFFICES THAT ARE IN PURPLE.

SO IT WOULD GIVE US ABOUT FIVE ADDITIONAL OFFICES.

I'D PROBABLY RECONFIGURE THIS A LITTLE DIFFERENTLY, BUT THEY ONLY DID ONE VERSION FOR US BECAUSE IF YOU LOOK AT THAT OFFICE THAT'S KIND OF IN THE CENTER THAT HAS THE BIG BLACK DOT IN IT, THAT IS ACTUALLY A COLUMN, AND I'D PROBABLY REDUCE THE SIZE OF THE STORE ROOM AND KIND OF FLIP SOME OF THAT AROUND.

BUT THOSE ARE JUST THAT'S JUST SOME GENERAL OPTIONS THAT WE HAVE TO EXPAND THAT SPACE AND MAKE SOME OFFICES SO WE CAN HOUSE ALL OF OUR ACCOUNTING FOLKS IN ONE LOCATION. AND SO THEY WOULD ALL BE SITUATED IN HERE AND THEN REPURPOSE THOSE OTHER SPACES AS WELL.

GO AHEAD, JASON. AND SO THAT'S THE UPDATE I WANTED TO KIND OF BRING TO YOU ALL, JUST TO KIND OF SEE WHERE WE WERE AT.

AND LIKE I SAID, WE CAN DO ABSOLUTELY NOTHING AND STAY STATUS QUO AND COME BACK NEXT YEAR AND TRY TO RENEGOTIATE SOME OF THESE THINGS AS WELL.

IF YOU GUYS WANT TO REALLY TALK THROUGH NEGOTIATION POINTS, WHAT I WOULD RECOMMEND WE DO IS AT THE NEXT MEETING, DO THAT IN EXECUTIVE SESSION, BECAUSE I THINK THERE ARE SOME THAT WE CAN DO, BUT WE JUST REALLY WANT TO GIVE YOU GUYS AN UPDATE ON WHERE WE WERE WITH OUR LEASE, HOW WE GOT HERE AND THEN WHAT WERE SOME OPTIONS MOVING FORWARD.

SO TROY, THANK YOU VERY MUCH FOR DOING THIS.

REAL ESTATE.

ONE OF THE THINGS I HAVE A LOT OF.

SURE. AND WITH COVID AND PEOPLE NOT GOING TO OFFICES ANYMORE, RIGHT.

I DON'T KNOW WHY THIS IS GOING UP.

IT SHOULD BE GOING DOWN. PLUS Q SAID MOVED OUT.

THEY HAVE A TON OF VACANCIES IN SALANA YOU KNOW, I THINK THEY SHOULD BE GOING THE OTHER WAY WITH US AND LOCKING IN CURRENT RATE OR LESS RATE.

RIGHT. YOU KNOW, I THINK WE HAVE A TON OF LEVERAGE HERE.

AND I MEAN, I THINK THEY NEED US MORE THAN WE NEED THEM RIGHT NOW.

AND I JUST I DON'T KNOW WHY WE WOULD WANT TO LOCK INTO HIGHER RATES WHEN TENANTS HAVE NEVER HAD THIS ADVANTAGE, COMMERCIAL TENANTS HAVE NEVER HAD THIS ADVANTAGE.

AND MAYBE THE HISTORY OF THE WORLD.

CORRECT. SO AND I AND I WOULD AGREE WITH YOU, TIM, AND LIKE I SAID, I THINK THIS IS SOMETHING WE WOULD WANT TO TALK IN AN EXECUTIVE SESSION JUST THE UPCOMING I AGREE ENVIRONMENT. I'M NOT OPPOSED TO A LONGER TERM LEASE, BUT IT'S GOT TO BE A WAY MORE FAVORABLE TERMS. I THINK WE HAVE ALL THE LEVERAGE IN.

YES. AND SO WE HAVE TIME TO REALLY DISCUSS THIS IN DETAIL.

BUT I JUST WANTED TO GIVE YOU GUYS AN UPDATE ON WHERE WE WERE AT SO WE COULD START TALKING ABOUT IT AND MOVING FORWARD.

BUT I TOTALLY DISAGREE.

I MEAN, I TOTALLY AGREE WITH YOU, TROY, AND I APPRECIATE ALL THE TIME, ENERGY AND EFFORT TO PUT THIS TOGETHER.

SO THANK YOU VERY MUCH FOR THAT.

NO PROBLEM. TROY OR JARED, DO WE HAVE A CAPACITY PLAN ON STAFFING? HOW DOES THAT WORK? HOW FORMAL ARE WE ON THAT WITH WHAT WE SEE COMING IN THE NEXT ONE, TWO, THREE OR FIVE YEARS, WHAT OUR STAFFING NEEDS MAY BE? SO WHAT WE DO IS WE HAVE KIND OF A BUDGETED PLANNING, BUDGETING, PLANNING PROCESS.

DEPARTMENTS PROVIDE A FIVE YEAR STAFFING LOOK.

SO WE DO HAVE A FIVE YEAR STAFFING LOOK DEPARTMENT BY DEPARTMENT.

SO IDENTIFYING WHAT FUTURE EMPLOYEES POTENTIALLY.

BOYS THAT WE WOULD NEED.

SO WE GIVE THEM THE DRIVER'S LIKE, WHAT'S GOING TO HAPPEN? THE SERVICES, THE.

I MEAN, HOW DO THEY. THAT'S PART OF THE DECISION MODEL IS WE'RE LOOKING AT, FOR INSTANCE, IF WE LOOK AT ADDITIONAL RESIDENTS, WE KNOW THAT'S GOING TO HIT OUR PUBLIC WORKS EMPLOYEES BECAUSE THEY'RE GOING TO HAVE TO BE INSTALLING NEW METERS, TAKING CARE OF THOSE ACCOUNTS.

SO THAT WOULD HIT US FROM A UTILITY BILLING AND ACCOUNTING PERSPECTIVE AFFECT OUR PUBLIC WORKS EMPLOYEES.

SO WE LOOK AT THOSE TRIGGERS.

I'D LOVE TO SEE THAT AT SOME TIME.

[00:15:01]

SO WE DO THAT FIVE YEAR FORECAST DURING THE BUDGET PROCESS.

AND SO THAT IS PART OF THAT PROCESS THAT WE DO.

EXCELLENT. DO YOU KNOW IF THERE'S A BUYOUT OR AN ESCAPE CLAUSE ON OUR CURRENT LEASE? GREAT QUESTION. I THINK WE HAVE TO PAY IT OUT.

I'M PRETTY CONFIDENT WE'D HAVE TO PAY BECAUSE THAT'D BE INTERESTING TO KNOW BECAUSE THAT WOULD GIVE US LEVERAGE IN NEGOTIATION.

DOING A LONG TERM I THINK IS A GREAT ANSWER, BUT NOT AT THESE RATES.

NO WAY. I THINK WE CAN MOVE THIS TO AN EXECUTIVE SESSION IN THE FUTURE.

YOU WON'T DO THAT LIKE DECEMBER.

THAT'S FINE. YOU WON'T COME BACK IN DECEMBER.

IN DECEMBER? YEAH. SO WE'RE THIRD OR FOURTH, AMY.

WHAT'S THAT MEETING? THE FIFTH.

IT'S CLOSE. AND WE'LL COME BACK AND WE'LL TALK ABOUT AN EXECUTIVE SESSION OF THE PATH FORWARD ON THIS.

AND CERTAINLY SO.

I APPRECIATE IT. THANK YOU. A MEETING.

THANKS TO ALL. SO THANK YOU.

A COUPLE MINUTES TO RESET AND THEN THAT'S THE END OF WORK SESSION ENDED AT 5:52 AND REGULAR MEETINGS AT 6:00.

ALL RIGHT, LET'S DO THE CALL.

THE ORDER FOR THE REGULAR MEETING.

WE'LL START OFF WITH THE FIRST THING IS THE PLEDGE OF ALLEGIANCE, RIGHT? ALLEGIANCE].

ALL RIGHT.

WE HAVE A CITIZEN PARENT.

COMMENTS. CURRENTLY HAVE ONE PERSON LISTED.

RIGHT NOW IS GAIL KRIEGER.

BILL, COME ON DOWN.

YOUR ISSUES, SIX GRADE SPORTS.

GOOD EVENING. MY NAME IS GAIL KRIEGER.

I LIVE AT 2003 NIGHT HOT COURT IN WESTLAKE.

[REGULAR MEETING – Call to Order (6:00 P.M.)]

I AM CONCERNED ABOUT THE ATHLETIC DIRECTORS CUTTING SIXTH GRADE SPORTS, BUT I'M LIMITING MYSELF TO TWO PAGES.

I LEARNED THIS MONTH THAT COACH PONDER CUT SIXTH GRADE SPORTS BECAUSE I ASKED ABOUT SIXTH GRADE BASKETBALL FOR MY SON.

I LEARNED THAT FROM OTHER PARENTS THAT THE SCHOOL ALSO HAD CUT SIXTH GRADE VOLLEYBALL THIS YEAR.

PARENTS DIDN'T KNOW SIXTH GRADE SPORTS HAD BEEN CUT BECAUSE WE STILL HAD SIXTH GRADE FOOTBALL AND SIXTH GRADE CHEER.

SO I SET A MEETING WITH COACH PONDER, AND I WANTED TO ASK WHY SIXTH GRADE SPORTS WAS CUT AND TO PLEAD MY CASE TO GET IT BACK.

[5. CITIZEN/PARENT COMMENTS: This is an opportunity for citizens to address the Town Council or Board of Trustees on any matter, whether or not it is posted on the agenda. Any residents wishing to speak on action items must submit a speaker request form to the Town Secretary. (Best practice is to submit the speaker form prior to the start of the meeting.) If your questions are satisfied, you may choose not to speak. Individual citizen comments are normally limited to three (3) minutes; however, time limits can be adjusted by the presiding officer. The presiding officer may ask the citizen to hold their comment on an agenda item if the item is posted as a Public Hearing. The Town Council and Board of Trustees cannot by law take action nor have any discussion or deliberations on any presentation made at this time concerning an item not listed on the agenda. The Town Council and Board of Trustees will receive the information, ask staff to review the matter, or an item may be noticed on a future agenda for deliberation or action.]

YOU WILL START IN SEVENTH GRADE.

IT'S HARMFUL TO YOUNGER KIDS DEVELOPMENT, APPARENTLY.

AND HE SAID IN TWO YEARS, TRACK AND CROSS COUNTRY WOULD NOT BE THERE FOR SIXTH GRADE OR THE YOUNGER KIDS.

THEY ARE SIMPLY ABLE TO RUN NOW BECAUSE THEY ARE GRANDFATHERED IN.

I ASKED HIM WHY UIL? BECAUSE HE WAS SAYING THAT WE WERE GOING TO UIL.

AND THIS IS HOW IT'S GOING TO BE BECAUSE WE DON'T HAVE SIXTH GRADE SPORTS.

AND HE EXPLAINED THAT IT'S TO HIM, IT'S THE NEXT LEVEL UP AND COMPETITION.

AND HE WAS TOLD BY PARENTS THAT THEY WANT THE NEXT LEVEL UP AND COMPETITION.

SO LAST SPRING AND SUMMER WITH COUNCIL AND BUDGETING, I WAS REALLY EXCITED TO SEE THAT SPORTS WAS A PRIORITY AND THERE WAS GOING TO BE FUNDING FOR SPORTS. BUT I HAVE TO WONDER WHY CUTTING HOW CUTTING SIXTH GRADE SPORTS GROWS OR ENHANCES OUR ATHLETICS.

FROM MY PERSPECTIVE, IT CHOPS IT OFF AT THE ROOT.

OUR RUNNING PROGRAMS HAD JUST REALLY STARTED AND GROWING LEAPS AND BOUNDS IN THE LAST FEW YEARS BECAUSE WE HAD EXPANDED AFTERSCHOOL RUNNING OPPORTUNITIES FOR OUR FOURTH AND FIFTH GRADE STUDENTS, AND THOSE KIDS ARE STILL RUNNING IN JUNIOR HIGH.

AND IF YOU'VE KEPT UP WITH THE CROSS-COUNTRY RESULTS THIS YEAR, THOSE KIDS ARE MEDDLING.

THEY'RE WINNING TROPHIES AS TEENS.

FOR WESTLAKE, IT WAS ALSO EXTENDED FOR TRACK.

AND THOSE KIDS HAVE DONE AMAZING THINGS BECAUSE THEY GOT STARTED EARLY.

SEE. ALSO, VOLLEYBALL HAD STARTED EARLY AND WE'VE GOT GREAT VOLLEYBALL PROGRAMS. BUT IF YOU'RE CUTTING OFF THE SIXTH GRADE ASPECT OF IT, YOU'RE ALSO CUTTING OFF THOSE OPPORTUNITIES TO GO.

AND I THINK WESTLAKE'S ADVANTAGE AS A NON SCHOOL IS THAT WE GET TO ENGAGE OUR KIDS AND NOT SO FIERCE COMPETITION IN SPORTS EARLY WHEN THEY'RE STILL OPEN

[00:20:02]

AND IF YOU LOOK AT SIXTH GRADERS, THEY'RE NOT AS TALL AS THE SEVENTH GRADERS.

THEY'RE STILL MINGLING WITH THEIR FRIENDS LIKE A CLASS WIDE GROUP.

THEY HAVEN'T SET UP DIFFERENT SOCIAL CLIQUES YET, AND WHEN THEY GET TO SERVE ON A TEAM TOGETHER, THEY BUILD FRIENDSHIPS THAT ACROSS THE SPECTRUM OF THE CLASS.

THEY DEVELOP HEALTHY HABITS AND SPORTS SKILLS.

AND I DON'T WANT TO LET THAT SLIP AWAY.

WESTLAKE OFFERS THE IB DIPLOMA AND THOSE TWO YEARS OF DP ARE SERIOUS COLLEGE PREP AND HARD WORK.

OUR STUDENTS HAVE TO PRIORITIZE THEIR TIME.

WE ARE NOT LIKE A UIL SCHOOL WHERE WE'RE GOING TO HAVE ALL OF OUR JUNIORS AND SENIORS PLAYING VARSITY SPORTS.

EVERY FAMILY AT WESTLAKE HAS A UIL SCHOOL ZONE TO THEM.

IF THEY WANT UIL SPORTS IF THEY WANT WILL ACADEMIC COMPETITIONS.

THEY'VE GOT A SCHOOL FOR THAT.

WESTLAKE IS A SCHOOL OF CHOICE AND WE CHOOSE IT FOR THE IB PROGRAM THE INCLUSIVE TEAM SPORTS, THE GREAT TEACHERS AND SMALL CLASSES.

ALSO COACH PONDER SAID THAT UIL REQUIRES ALL TEACHERS, ALL COACHES TO BE TEACHERS AT THE SCHOOL.

THEY WOULD NOT BE ALLOWED TO HAVE OUTSIDE COACHES COME IN.

I THINK WE HAVE AMAZING TEACHERS AT WESTLAKE AND I KNOW WE WORK REALLY HARD TO FIND THOSE TEACHERS WHO HAVE THE IB EXPERIENCE AND EXPERTISE.

I DON'T SEE THAT'S POSSIBLE TO TRY AND PRIORITIZE SPORTS OVER THAT AND MAKE OUR TEACHERS ALL HAVE TO BE OUR COACHES.

WE'VE HAD A GREAT PROGRAM PULLING IN OUTSIDE COACHES AS NEEDED WHEN WE DON'T HAVE A TEACHER.

AND I THINK THAT IS IT'S BEEN A GREAT WAY TO GO.

AND IF YOU LOOK IN THE FIELDHOUSE, THERE'S A WHOLE WALL OF STUDENTS WHO'VE PLAYED WHO HAVE GONE ON TO PLAY THEIR SPORT IN COLLEGE AND THEY DID.

THEY'RE DOING GREAT.

THEY GOT THEIR ACADEMICS, THEIR IB AND THEIR SPORTS WITHOUT HAVING TO BE A UIL SCHOOL.

SO WE'RE NOT IN UIL.

NOW IF WE GO THERE AT ALL, IT'S YEARS AWAY AND SO THERE'S NO REASON TO CUT SIXTH GRADE SPORTS.

ALL THAT'S LEFT RIGHT NOW ARE BASKETBALL, GOLF.

I DON'T KNOW IF ANYONE WILL STEP UP TO DO SOCCER, BUT I HAD A MEETING WITH COACH PONDER AND COACH A.D.

AND I VOLUNTEERED TO REGISTER SIXTH GRADE TEAMS AT SOUTH LAKE REC, WHICH IS WHERE WESTLAKE HAS OFFERED BASKETBALL BEFORE, LIKE MY DAUGHTER DID LAST YEAR AND MY OTHER DAUGHTER DID THREE YEARS AGO.

SO I'VE GOT 28 PLAYERS.

WE'VE GOT TWO TEAMS OF GIRLS AND ONE TEAM OF BOYS, AND WE'RE SUPER EXCITED.

I DON'T KNOW WHY A COACH BONDER WON'T DO THIS.

I ASKED IF I GOT THE TEAMS TOGETHER AND I FOUND A QUALIFIED COACH WHETHER HE WOULD TAKE IT UNDER AND PROVIDE THE STIPEND AND HE SAID, NO, I DON'T HAVE THE BUDGET FOR IT.

SO HE FINALLY GOT A SPORTS BUDGET.

ALL OF OUR SPORTS ARE SELF-FUNDED.

WE ALL PAY OUR PRO RATA SHARE THROUGH SCHOOLS, BUDDY, AND HE'S NOT TOUCHING THIS.

SO I'VE GOT THE TEAMS. I HAVE NO IDEA HOW I'M GOING TO COACH ALL THREE TEAMS. I'M RECRUITING SOME HIGH SCHOOL VARSITY PLAYERS TO HELP, BUT I WOULD REALLY APPRECIATE YOUR SUPPORT IN GETTING COACH BONDER TO GET BACK THE SIXTH GRADE SPORTS.

THANK YOU VERY MUCH, GAYLE. THANK YOU VERY MUCH.

GLENN, DID YOU WANT TO SPEAK? GOOD EVENING. MAYOR AND COUNCIL.

YOU GUYS MET ME LAST WEEK.

JUST WANT TO SAY REAL QUICK THAT I'M REALLY ACTUALLY IN SUPPORT.

CAN YOU INTRODUCE YOURSELF OUT LOUD? SORRY, GUYS. MY NAME IS GLENN GOBLE.

2001 NIGHTHAWK COURT HERE IN WESTLAKE.

I'M GOING TO BE SPEAKING ABOUT TWO THINGS, ACTUALLY.

ONE IS SIXTH GRADE SPORTS, TOO, AS WELL.

AND ALSO SCHOOL SECURITY.

JUST LIKE LAST WAS THE LAST MEETING I SPOKE ABOUT SPECIFICALLY ABOUT WANTING TO GET A SRO POSITION FOR OUR SCHOOL.

AND IT LOOKS LIKE WE'RE MOVING TOWARDS THAT IN PRETTY TIMELY FASHION.

I DO HAVE A COUPLE OF CONCERNS ABOUT THAT.

FIRST IS THAT THE CITY OF KELLER IS GOING TO BE APPEARS TO BE THE ONE THAT'S GOING TO BE MANAGING THIS AND ACTUALLY COMMISSIONING THE SRO OFFICER.

MY QUESTION IS, HOW MANY APPLICANTS HAVE YOU GUYS HAD FOR YOUR SRO POSITION THAT YOU GUYS HAVE HAD OPEN? I'VE HEARD NUMBERS RANGING FROM ZERO EXTERNAL APPLICANTS TO ONE INTERNAL APPLICANT, SO I HAVE A QUESTION ABOUT THAT AS AN ASIDE.

BUT MOST IMPORTANTLY, WE NEED TO GET AN OFFICER INTO OUR SCHOOL.

RIGHT NOW WE HAVE A SCHOOL THAT BASICALLY HAS NO OFFICERS AND NO PROTECTION WHILE OUR KIDS ARE IN SESSION.

THAT'S FIRST AND FOREMOST.

SECOND OFF, IN TERMS OF DISCUSSIONS WITH ANY POSSIBLE THREAT ANALYSIS DONE ON THE SCHOOL, WE JUST WANT TO GO ON THE RECORD MAKING SURE THAT AS WE MOVE FORWARD ON ANY POSSIBLE THREAT ASSESSMENTS, THAT WE'RE NOT JUST LOOKING AT ACTIVE SHOOTERS, BUT WE'RE ALSO LOOKING AT DRUGS, WE'RE LOOKING AT

[00:25:06]

ANY INTERNAL THREATS, BULLYING THE WHOLE NINE YARDS, NOT JUST CHECKING A BOX FOR MAKING SURE WE FULFILL THE QUOTAS THAT ARE REQUIRED BY OUR STATE, FOR OUR CHARTER AND ALSO TO HAVE A SCHOOL.

AND ALSO, NUMBER TWO, I ALSO LIKE TO SPEAK ON SIXTH GRADE SPORTS.

I HAVE A KINDERGARTNER AND A FIRST GRADER.

AND RIGHT NOW WE ARE HIGHLY INVOLVED IN SOCCER AND SPORTS THROUGH CLUB.

WE WOULD LOVE TO HAVE THE OPPORTUNITY TO GROW AND MOVE INTO THE SCHOOL SPORTS AS SOON AS POSSIBLE.

SIXTH GRADE WOULD BE A GREAT OPPORTUNITY.

EVEN YOUNGER WOULD BE FINE.

BUT WE THINK THAT WHAT MRS. KRIEGER IS DOING IS ACTUALLY REALLY, REALLY PRETTY IMPRESSIVE.

WE HAVE A PARENT WHO IS ACTUALLY STEPPING UP TO COACH TEAMS. THIS IS HUGE.

LIKE, THIS IS A REALLY BIG DEAL.

AND I THINK THAT SHE HAS EVERYTHING THAT SHE HAS, WHAT, THREE FULL TEAMS, I BELIEVE SHE SAID.

THAT'S PRETTY INCREDIBLE.

SO WITH THAT BEING SAID, I JUST WANT TO REVOICE WHAT SHE SAID, HER CONCERNS.

I DON'T KNOW WHAT THE BIG UIL PICTURE IS AND HOW IMPORTANT THAT IS RIGHT NOW.

BUT THE MOST IMPORTANT THING I THINK, IS THAT OUR KIDS DO GET A ROLL AROUND IN EDUCATION, THAT THEY GET THE BALANCE OF BOTH SPORTS AND ACADEMICS AND MOST IMPORTANTLY, THEY'RE SAFE.

THANK YOU. THANK YOU VERY MUCH.

THANK YOU VERY MUCH. THANKS SO MUCH.

ANY OTHER PEOPLE TO SPEAK? NO. ALL RIGHT.

ITEMS IN COMMUNITY INTEREST.

THE LOVELY AND TALENTED MR. JOHN SASSER.

NICE SWEATER. WELL, WE'RE DONE HERE.

WELL, THANK YOU, MAYOR.

COUNCIL. AND THANKS TO EVERYBODY WHO'S TUNING IN AT HOME.

THANKS FOR FOR WATCHING.

WE'RE GOING TO GET RIGHT INTO IT WITH OUR FINAL EVENT OF THE OF OCTOBER.

WE'VE GOT A COMMUNITY BLOOD DRIVE COMING UP ON SATURDAY, OCTOBER 29TH, FROM 9 TO 3.

THAT'S GOING TO BE AT THE WEST LAKE FIRE AND EMS STATION.

THIS WAS WELL ATTENDED THE LAST COUPLE OF YEARS, IS PUT ON BY ONE OF OUR OWN WESTLAKE FAMILIES.

GREAT, CAUSE THEY'VE GOT PLENTY OF SPOTS AVAILABLE.

IF ANYBODY IS INTERESTED IN TAKING PART IN IT, WE HAVE A BANNER AT THE TOP OF OUR WEBSITE WHERE YOU CAN CLICK ON THAT AND SIGN UP FOR A PRE SIGN UP FOR ONE OF THOSE THOSE SLOTS TO GO AND DONATE BLOOD. SO IT'S A GREAT CAUSE AND WE HOPE TO SEE YOU GUYS ON SATURDAY THIS COMING SATURDAY 9 TO 3:03 P.M.

[6. ITEMS OF COMMUNITY INTEREST]

OF COURSE A QUICK REMINDER, HALLOWEEN IS MONDAY NIGHT.

SO THAT IS GOING THERE'S GOING TO BE A LOT OF LITTLE GHOULS AND GOBLINS OUT THERE.

SO WE'RE GOING TO PUT OUT SOME INFORMATION ABOUT SAFETY AS THE STREETS KIND OF GET FILLED WITH TRICK OR TREATERS.

SO WE'LL MAKE SURE EVERYBODY'S SAFE THERE.

TUESDAY, NOVEMBER 1ST, FROM 8 TO 9:30 IS OUR NEXT COFFEE AND CONVERSATION.

IF YOU HAVEN'T ATTENDED ONE OF THESE, I HIGHLY URGE YOU TO DO SO.

I SEE A COUPLE OF FOLKS WHO HAVE BEEN THERE.

MRS. KRIEGER. MR. WOOLRIDGE, YOU'VE ATTENDED.

THIS IS A GREAT OPPORTUNITY BECAUSE, YOU KNOW, WE LOVE THE CITIZENS COMMENTS THAT WE JUST HEARD.

NOW THEY'RE VERY INFORMATIVE.

UNFORTUNATELY, DUE TO PROTOCOLS, THE MAYOR AND COUNCIL CAN'T SPEAK ON THOSE UNLESS THERE ARE AN AGENDA.

A GREAT OPPORTUNITY IS TO COME TO ONE OF THESE MEETINGS, ONE OF THESE COFFEES AND CONVERSATION, AND HAVE A DIRECT CONVERSATION WITH THE MAYOR ABOUT THESE WHERE WE CAN HAVE A GREAT DIALOG. AND IT'S A WIDER RANGE OF.

OF ISSUES YOU CAN TALK ABOUT WHETHER IT IS WESTLAKE ACADEMY OR THE TOWN OR ANYTHING THAT YOU WOULD LIKE TO TALK ABOUT AND THOSE.

EVERYBODY'S INVITED. SO IT'S A LOT OF FUN AND VERY INFORMATIVE.

THAT'S IT. SIPS THEIR COFFEE.

8 TO 930 THIS COMING TUESDAY, NOVEMBER 1ST.

OUR NEXT TOWN COUNCIL MEETING IS NOVEMBER 7TH.

THEN WE HAVE ANOTHER ONE BACK TO BACK ON THE 14TH AS WELL.

SO TWO IN NOVEMBER AND THEN.

NO, THAT'S BEEN CANCELED.

THAT HAS BEEN CANCELED. OH, GREAT.

THE 14TH HAS BEEN CANCELED.

YES. OKAY, FANTASTIC.

THANK YOU. SO AGAIN, SEVENTH.

SEVENTH HAS BEEN CANCELED. I WAS KIDDING.

SO WE'RE ON THE RECORD.

NOVEMBER 7TH CANCELED.

NOVEMBER 14TH, WE'RE ON OK.

GREAT. AND THEN ON THE 15TH.

SO THE VERY NEXT DAY IS GOING TO BE THE PLANNING AND ZONING MEETING.

AND THEN WE HAVE THE HOLIDAY BREAK FROM NOVEMBER 21ST THROUGH THE 25TH FOR WESTLAKE ACADEMY.

AND THEN THE TOWN HALL AND MUNICIPAL COURT IS GOING TO BE CLOSED ON THE 24TH AND 25TH FOR THE THANKSGIVING HOLIDAY.

A COUPLE OF QUICK NOTES HERE.

RECAP THE CAR SHOW.

I KNOW SOME OF YOU GUYS ATTENDED.

IT WAS PHENOMENAL. SO GREAT JOB BY JARED, EMILY, TROY, THE WHOLE CREW WHO SPENT HOURS AND HOURS AND HOURS OF PLANNING AND SETTING UP.

WE ESTIMATED MORE THAN PROBABLY 1000 PEOPLE.

OH, AT LEAST.

YEAH. THE PARKING LOT WAS JAM PACKED, NOT JUST WITH THE PARTICIPANTS, BUT WITH FOLKS WHO ARE ATTENDING THE EVENT.

108 ENTRIES THIS YEAR.

THE WEATHER WAS ABSOLUTELY PERFECT.

GOT A LITTLE WARM LATER, BUT IT WAS JUST PHENOMENAL.

MOVING IT OVER HERE TO THIS WAS A NEW VENUE BECAUSE OF THE LARRY NORTH CONSTRUCTION AND LIFETIME.

[00:30:02]

AND I THINK IT'S ONLY GOING TO GROW NEXT YEAR.

SO CONGRATULATIONS TO YOU GUYS.

PHENOMENAL WORK. ANOTHER EVENT THAT WE'D LOVE TO BRAG ON WAS OUR FINAL CONCERT OF OF 2022.

WE HAD THREE IN THE FALL. WE NEVER HAD THEM IN THE FALL BEFORE.

WE USUALLY HAD TWO IN THE SPRING.

BUT WE REALLY WANTED TO BOOST COMMUNITY ENGAGEMENT AND INTEREST.

WE HAD THREE IN THE SPRING, THREE IN THE FALL.

AND EACH OF THE ONES THAT WE HAD IN THIS FALL, ATTENDANCE JUST EXPLODED.

WE HAD GREAT PARTICIPATION FROM THE RESTAURANTS AND LOCAL BUSINESSES OVER THERE.

THE FOLKS OVER AT THE SOLANA PLAZA DID A WONDERFUL JOB IN HELPING PLANNING THIS.

OUR LAST CONCERT WAS WINDY CITY LAST THURSDAY, AND THEY HAD ABOUT 200 PEOPLE THERE, WHICH WAS GREAT.

PEOPLE HAD A BIRTHDAY PARTY THERE WHERE THEY WERE CELEBRATING THEIR BIRTHDAY AT ONE OF OUR CONCERTS.

AND THAT'S WHAT IT'S ALL ABOUT. THAT'S WHAT WE LIKE TO SEE.

SO WE'RE DEFINITELY GOING TO CONTINUE TO DO THIS.

AND HEY, IF YOU GUYS SEE ANYBODY THAT YOU'D LIKE US TO BRING ON IN THE SPRINGTIME, LET US KNOW WE'RE OPEN TO ANY ACTS.

MONSTER MASH, ANOTHER HUGE EVENT THAT WAS THIS PAST SATURDAY.

WE'RE TOLD AT LEAST 1000 PEOPLE ATTENDED THAT AS WELL.

THAT WAS AGAIN, WAS OPEN TO WESTLAKE ACADEMY FAMILIES AND WEST LAKE RESIDENTS.

SO WE WERE THREE FOR THREE ON OUR EVENTS HERE IN THE LAST FEW DAYS.

AND THEN WE'RE GOING TO TURN OUR ATTENTION TO DECEMBER 1ST, WHICH IS A TREE LIGHTING, WHICH TRADITIONALLY IS OUR LARGEST EVENT OF THE YEAR.

IT'S ALWAYS BEEN SUCCESSFUL AGAIN, SINCE WE'VE MOVED IT OVER HERE, A LOT OF PEOPLE HAVE TURNED OUT WE'RE GETTING A LOT OF INTEREST FROM FOLKS OUTSIDE OF WESTLAKE WHO ARE COMING AND THAT TOO, IS WHAT IT'S ALL ABOUT.

I MEAN, THE WORD IS GETTING OUT.

IT'S A GREAT TIME AND A LOT OF FUN.

I KNOW EMILY AND HER CREW AND TROY ARE HARD AT WORK AT PLANNING THAT AS WELL.

SO NO REST FOR THE WEARY THERE.

SO AGAIN, THAT WILL BE DECEMBER 1ST FROM 6 TO 8.

AND WE'LL HAVE A LOT MORE INFORMATION ON THAT AS WE GET CLOSER TO THE EVENT.

THOSE ARE YOUR ITEMS OF COMMUNITY INTEREST.

THANK YOU VERY MUCH. ALL RIGHT.

I AM NUMBER SEVEN CONSENT AGENDA.

CAN I GET A MOTION TO APPROVE THE CONSENT AGENDA AT FIRST? YEAH. ALL FIRST, SECOND, SECOND.

ALL IN FAVOR? AYE. ALL OPPOSED? NO OPPOSE, MOTION CARRIES.

ALL RIGHT. ITEM NUMBER EIGHT REPORTS.

THERE'S NO REPORT.

THEN WE GO ON TO A REGULAR AGENDA ITEMS. AND BEFORE WE HAVE CHIEF COME SPEAK, I'M GOING TO QUICKLY CLOSE OUT EXECUTIVE SESSION ITEMS FROM UPSTAIRS.

CAN I GET A MOTION TO APPROVE THE AMENDMENT TO THE INTERLOCAL AGREEMENT FOR POLICE SERVICES WITH THE CITY OF KELLER FOR THE PURPOSE OF ADDING A STUDENT RESOURCE OFFICER AT WESTLAKE ACADEMY CAMPUS? FIRST, OK SECOND, SECOND.

ALL IN FAVOR. AYE.

ALL OPPOSED NO OPPOSED MOTION CARRIES.

ALL RIGHT. EXCELLENT.

SO WE'LL BE TALKING ABOUT THIS A LITTLE BIT WITH CHIEF FORTUNE.

CAN I GET A MOTION TO DIRECT AHEAD OF SCHOOL TO COMMENCE IN THE PROCESS OF PRODUCING A SECURITY AUDIT FOR THE WEST LAKE ACADEMY?

[7. CONSENT AGENDA]

ALL IN FAVOR? AYE. ALL OPPOSED NO OPPOSE MOTION CARRIES.

THEN THIRD ITEM IN REAL QUICK.

CAN I GET A MOTION TO CREATE AN ADVISORY SECURITY COMMITTEE CONSISTING OF THE FOLLOWING CITIZENS?

[12. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS.]

WE'LL SAY BY 30 JANUARY OF 2023.

CAN I GET A MOTION TO APPROVE? I'LL MAKE A MOTION. ALL IN FAVOR.

AYE OPPOSED.

NO OPPOSE. MOTION CARRIES.

ALL RIGHT. THAT'S GOOD.

QUICK, CHIEF.

WE'VE GOT THE FOUR. THANK YOU VERY MUCH, MR. MAYOR. MEMBERS OF COUNCIL.

THANK YOU ALL FOR LETTING ME COME BEFORE YOU GUYS.

I WANT TO SAY THAT THIS IS A 42 SLIDE PRESENTATION, AND WE ARE NOT GOING TO GO THROUGH ALL 42 SLIDES.

THE REASON I DID THIS IS THAT THERE ARE A LOT OF NEW MEMBERS ON COUNCIL.

YOU HAVEN'T HAD AN OPPORTUNITY TO HAVE ONE ON ONE WITH ME.

AND I KNOW THAT THERE'S SOME CITIZENS THAT PROBABLY HAVEN'T HEARD MY PREVIOUS ANNUAL REPORTS AND THINGS LIKE THAT.

SO I USE THIS AS AN OPPORTUNITY TO PROVIDE DATA FOR THEM.

THEY CAN GO ONLINE, THEY CAN TAKE A LOOK AT THIS POWERPOINT FOR FUTURE REFERENCE, AND MY OFFICE IS ALWAYS OPEN IF THEY WANT TO TALK ABOUT POLICING, PHILOSOPHY OR ANY OF THE THINGS IN THESE PRESENTATIONS, IT'S JUST OPENING THE DOOR FOR THEM FOR MORE DIALOG.

SO WE'RE NOT GOING TO GO THROUGH ALL THE WEEDS.

WE'D BE HERE TILL NINE. SO.

SO FIRST THING IS MY MISSION VALUES AND MISSION AND VALUES.

SO I USUALLY GO THROUGH EXACTLY WHAT I THINK THIS MISSION REPRESENTS BECAUSE IT'S NOT JUST A MISSION THAT YOU STICK ON A WALL AND EVERYONE KIND OF DUSTED OFF EVERY YEAR.

[9. Receive an update from the Keller Police Department]

OUR EVALUATIONS THAT WE GIVE TO OUR FOLKS ARE BASED ON HOW THEY'RE COMPLYING WITH THIS MISSION AND THESE FOUR CORE VALUES, EVERY TASK THAT THEY'RE REQUIRED TO DO.

SO EVERY NEW EMPLOYEE GETS THESE VALUES.

WE GO THROUGH THEM, THEY UNDERSTAND THEM, AND THAT'S THE EXPECTATION.

SO MOVING FORWARD, THE POLICING PHILOSOPHY IS A BIG TERM IN POLICING NOW IS PROCEDURAL JUSTICE.

AND THERE ARE THE FOUR TENANTS RIGHT THERE, FAIRNESS IN THE PROCESS, TRANSPARENT ACTIONS, GIVING EVERYONE A VOICE AND IMPARTIALITY AND DECISION MAKING.

[00:35:07]

SO BUT I WANT PEOPLE TO KNOW THAT'S REALLY SPOKEN TO THIS NEXT PART OF OUR POLICING PHILOSOPHY IS FROM SIR ROBERT PEEL.

AND THE POLICE PROFESSION IS LIKE IS KNOWN AS THE MODERN MODERN DAY FATHER OF MODERN POLICING.

AND HE'S FROM THE LONDON METROPOLITAN POLICE DEPARTMENT.

AND FROM 1829 HE DEVELOPED THESE NINE PRINCIPLES.

THEN IN 1829, HE THOUGHT WAS PRETTY RELEVANT TO POLICING, AND HE WANTED HIS PEOPLE TO ACT.

THESE ARE THREE OF THEM THAT I PUT HERE, BUT ALL NINE OF THEM ARE JUST AS RELEVANT TODAY TO OUR POLICING.

AND SO, AGAIN, THIS IS FOR YOUR OWN WELFARE OR JUST YOUR OWN KNOWLEDGE TO READ.

AND AGAIN, WE CAN GO INTO MORE DETAIL ABOUT ANY OF THEM, HOW THEY APPLY TO THESE DAYS.

BUT THIS IS ALL INFORMATION AND GUIDANCE THAT I'M GIVING TO MY OFFICERS ON EXPECTATIONS.

SO ANOTHER PART IS ONE THING THAT SO THERE'S INTERNATIONAL LAW ENFORCEMENT ADMINISTRATION ENTITY THAT'S IN PLANO AND THEY DO A LOT OF TRAINING FOR POLICING AROUND MAINLY THE REGION, BUT ALSO PEOPLE FROM AROUND THE COUNTRY COME IN FOR MID-LEVEL MANAGEMENT, EXECUTIVE LEVEL LEADERSHIP CLASSES.

AND I TEACH 21ST CENTURY POLICING THERE TO EVERY SUPERVISORY CLASS THAT COMES THROUGH FROM DIFFERENT AGENCIES THAT COME BY JUST TO MAKE SURE THIS IS THE 21ST CENTURY.

POLICING STARTED IN 2014 UNDER PRESIDENT OBAMA, AND IT WAS A RESPONSE TO A LOT OF THE THE CIRCUMSTANCES AND INSTANCES THAT HAVE BEEN AROUND OUR COUNTRY.

AND AGAIN, I'M NOT GOING TO GO INTO THE WEEDS ABOUT IT, BUT THIS IS SOMETHING THAT I AM PASSIONATE ABOUT.

AND ANY CITIZEN THAT WANTED TO DISCUSS IT AND TALK ABOUT IT AND SEE HOW IT APPLIES IN COLOR, I'D BE MORE THAN HAPPY TO DISCUSS.

SO THERE ARE SIX PILLARS IN THE 21ST CENTURY POLICING.

JUST A COUPLE THAT I WILL HIGHLIGHT ON THESE SLIDES UNDER THE FIRST PILLAR BUILDING TRUST AND LEGITIMACY.

SO NUMBER ONE, WE DO THE ANNUAL RACIAL PROFILING REPORT AS A REQUIREMENT OF SENATE BILL 1074, TEXAS RACIAL PROFILING, AS WELL AS SENATE BILL 1849, THE SANDRA BLAND ACT. WE DO NOT DO THAT REPORT.

WE HAVE A THIRD PARTY ENTITY THAT AUDITS US EVERY QUARTER TO MAKE SURE THAT THROUGHOUT THE YEAR THERE'S NO TRENDS OR THINGS THAT WE NEED TO SPOTLIGHT AND LOOK AT ON HOW WE'RE ENFORCING HOW WE'RE MAKING TRAFFIC STOPS.

BUT IT ALSO COLLECTS OUR ANNUAL DATA TO TELL US ARE WE IN COMPLIANCE WITH OUR DATA COMPILATIONS? AND WE HAVE BEEN. AND SO IN OUR ANNUAL REPORT, I WILL BE PROVIDING YOU THOSE RESULTS AS WELL THAT WE DO EVERY YEAR.

ADDITIONALLY, THERE ARE SEVERAL REPORTS THAT WE PROVIDE ONLINE FOR CITIZENS TO HAVE AT THEIR OWN LEISURE THAT KEEP US IN CHECK, WHETHER IT'S BIAS BASED POLICING, OUR PURSUITS AND OUR INTERNAL AFFAIRS COMPLAINTS.

WE HAVE ALL THAT ONLINE AND CITIZENS ARE WELCOME TO GO ON AND TAKE A LOOK AT THOSE ITEMS. THE OTHER PART IS THAT ALSO ONLINE IS UNDER THE WHO WE ARE ON OUR WEBSITE.

I'M GOING TO GET OVER IN A SECOND.

I'M GOING TO TALK ABOUT OUR CHIEFS ADVISORY COUNCIL THAT ARE COMPRISED OF CITIZENS THAT ADVISE ME WHEN WE HAVE ANY KIND OF INTERNAL AFFAIRS COMPLAINTS.

IT HAS PICTURES OF THESE CITIZENS, THEIR BIOS, KIND OF WHO THEY ARE AND WHAT THEY'RE ABOUT, AND SO EVERYONE CAN BE FAMILIAR WITH WHO THEY ARE.

SO POLICY AND OVERSIGHT, AGAIN, THESE ARE JUST SOME WE ALSO FEEL IT'S IMPORTANT THAT POLICIES THAT I THAT WE IMPLEMENT WITHIN OUR POLICE DEPARTMENT, THAT WE WANT TO MAKE SURE OUR CITIZENS KNOW THAT THEY CAN SEE THESE POLICIES.

THERE'S NO HIDDEN AGENDAS.

THERE'S NO SECRETS.

THEY CAN TAKE A LOOK AT WHAT THE EXPECTATIONS ARE.

AND THERE ARE SOME OF THE ITEMS THAT HAVE BEEN OF NOTE LATELY, ESPECIALLY.

AFTER THE TRAGIC DEATH OF GEORGE FLOYD, THE LOT OF THOSE POLICIES WERE ALREADY IN PLACE.

WE DID SHORE SOME OF THEM UP TO MAKE SURE THAT THEY WERE MORE SPECIFIC.

BUT THAT'S JUST SOMETHING FOR OUR CITIZENS TO BE AWARE OF THAT THEY HAVE ACCESS TO IF THEY WANT.

SO THE OTHER PART THAT IS AS FAR AS EXTERNAL OVERSIGHT THAT WE HAVE UNDER PILLAR TWO IS SO WE DO HAVE A CRIME CONTROL AND PREVENTION DISTRICT BOARD IN KELLER.

BUT REALLY WHAT I WANTED TO HIGHLIGHT HERE WAS OUR CHIEFS ADVISORY COUNCIL IS COMPRISED OF CITIZENS KELLER AND WEST LAKE CITIZENS THAT ARE A PART OF IT.

WE HAVE A SELECTION PROCESS THAT EVERY TIME THERE'S OPENINGS, THEY'RE VETTED FROM THE BY THE CURRENT ADVISORY COUNCIL.

BUT THEN APPROVAL IS PROVIDED BY THE MAYOR OF WESTLAKE AND MAYOR AND MAYOR PRO TEM OF KELLER.

THEY GET THE FINAL SAY WHO CURRENTLY ON WESTLAKE ON THIS COUNCIL, BRIAN FOLEY.

AMBASSADOR CORKER, HE WORKS AT SCHWAB.

AND YOU HAVE ANOTHER GENTLEMAN, JAY PATEL, WHO CURRENTLY LIVES IN KELLER BUT IS FIXING TO BUY IN WESTLAKE.

SO WE HAVE SOME SOME GOOD REPRESENTATION THERE.

BUT AGAIN, THEIR BIOS AND EVERYTHING ARE ONLINE FOR EVERYONE TO LOOK AT IT IF YOU SO DESIRE.

THE OTHER PART ON THIS, THIS ONE SLIDE OF I TALKED ABOUT THE THIRD PARTY AUDIT REPORTS, BUT ALSO WE ARE AN ACCREDITED LAW ENFORCEMENT AGENCY.

WE WERE THE FIRST IN THE STATE OF TEXAS TO BE BOTH NATIONALLY AND STATE ACCREDITED.

AND THERE ARE SOME INFORMATION ON THE DATES AND THE ORGANIZATIONS THAT WE ARE BOTH NATIONALLY AND STATE ACCREDITED THROUGH.

SO AND JUST THIS LAST YEAR, IN 2022, A COUPLE OF MONTHS AGO, WE WENT TO CHICAGO AND GOT RE ACCREDITED NOT ONLY FROM OUR LAW ENFORCEMENT FUNCTION, BUT OUR DISPATCH, OUR

[00:40:03]

IT'S TECHNOLOGY AND SOCIAL MEDIA.

WE COULD GO I MEAN, THIS IS JUST BULLET POINTS OF SOME OF THE ITEMS THAT ARE IMPORTANT TO US.

BUT ONE THING WE DO HAVE, WE HAVE A NEW SYSTEM.

WE'VE HAD A SYSTEMS THAT PROVIDE THIS SERVICE.

OUR NEW SYSTEM IS CALLED BENCHMARK ANALYTICS, AND IT'S BASICALLY AN EARLY WARNING SYSTEM.

IF WE HAVE ANY SPECIFIC OFFICERS THAT ARE ENGAGED IN PURSUITS MORE THAN OTHERS, WE USE THE FORCES MORE THAN OTHERS.

IT GIVES US AN ALERT TO JUST SAY, HEY, DOUBLE CHECK, MAKE SURE THESE ARE ISOLATED INCIDENTS.

AND HE JUST HAPPENED TO BE THE UNFORTUNATE PERSON THAT HAD TO DEAL WITH THEM OR THERE'S SOMETHING WE NEED TO BE LOOKING AT DEEPER.

AND THAT'S VALUABLE FOR ANY POLICE ORGANIZATION TO BE ABLE TO TRIGGER THAT WITH THEIR OFFICERS.

SO WE DO HAVE THAT IN PLACE.

WE DO HAVE NEW DRONE PROGRAMS THAT HAVE BEEN REALLY HELPFUL FOR US, ESPECIALLY, AGAIN, AFTER THE GEORGE FLOYD INCIDENT, WE HAD ONE OF OUR FIRST EVER BLACK LIVES MATTER PROTEST, AND IT WAS VERY GOOD JUST FOR THE SAFETY OF THE CITIZENS TO KEEP TRACK OF EVERYBODY AND JUST MAKE SURE WE WERE KEEPING EVERYTHING CONTAINED.

AND IT WAS A PERFECT, PEACEFUL, GREAT PROTEST.

AND THE DRONES HAVE BEEN VERY HELPFUL IN JUST KIND OF HELPING US HAVE OVERALL AWARENESS AND SPECIAL EVENTS.

I KNOW IT HELPED THE WESTLAKE FIRE DEPARTMENT IN A PROMOTIONAL VIDEO ON AN EVENT THAT THEY HAD.

SO THERE'S A LOT OF DIFFERENT BENEFITS TO THE DRONES, BUT THAT IS A GOOD EQUIPMENT THAT WE HAVE NOW.

CURRENTLY, YOU'LL BE HEARING ABOUT THIS A LITTLE BIT MORE.

WE RECENTLY TRANSITIONED FROM OUR CONTROL COMPUTER AIDED DISPATCH CAD SYSTEM, WHICH IS ALSO OUR RECORDS MANAGEMENT SYSTEM.

WE ARE IN THE MIDDLE OF TRANSITIONING OVER FROM AN OLDER SYSTEM THAT WAS REALLY OUT OF DATE.

NOW WE'VE UPGRADED. IT'S BEEN A VERY LONG PROCESS, BUT THAT'S GOING TO PROVIDE US A LOT BETTER DATA COLLECTING AND CAPABILITIES THAT WE'VE HAD IN THE PAST.

SO THAT'S GOING TO BE COMING. ONCE WE AGAIN, IT JUST WENT LIVE.

SO WE'RE WORKING THROUGH TWEAKS LIKE ANY NEW MAJOR SOFTWARE CHANGE, BUT IT'S GOING TO BE REALLY GOOD FOR OUR FUTURE.

AND THEN LASTLY ON THERE'S POLICE ONE TRAINING, AND THAT'S JUST A TRAINING MECHANISM THAT HELPS ALL OF OUR OFFICERS WHEN WE DON'T ALWAYS GO AND GET IN PERSON TO DO HANDS ON TRAINING. THERE'S A LOT OF TRAINING THAT THEY CAN DO INDIVIDUALLY, REGARDLESS OF THE SHIFTS THEY WORK, WHETHER THEY'RE AT THE STATION, IT'S ALL ONLINE AND THAT'S JUST CONTINUE IN PURSUIT OF CONTINUOUS EDUCATION.

SO COMMUNITY POLICING AND CRIME REDUCTION.

THE BIGGEST THING HERE THAT I WANTED TO MENTION IS THAT SHORTLY AFTER I ARRIVED HERE, WE STARTED A HISD POLICE CHIEF'S STUDENT FORUM AND WE ALSO STARTED ONE AT THE WESTLAKE ACADEMY AND IT ALLOWS KIDS TO APPLY.

AND THEN BASICALLY WE USUALLY MEET ABOUT 9 TO 10 TIMES A YEAR AND THEY GET A ONE ON ONE WITH ME.

AND WE JUST TALK ABOUT WHAT'S GOING ON NATIONALLY, LOCALLY.

WHAT QUESTIONS DO YOU HAVE ABOUT LAW ENFORCEMENT AND BASICALLY HUMANIZING THE BADGE, BREAKING DOWN STEREOTYPES AND JUST KIND OF KIND OF JUST BE IN THAT CONSTANT COMMUNICATION WITH THEM. AND IT'S REALLY GROWN TO BE A BENEFIT AND DEVELOP TO BE IT'S OPEN UP DISCUSSIONS.

I DIDN'T THINK WE'RE GOING TO BE HAD, BUT IT WAS REALLY GOOD.

IT GAVE TO A LOT OF POSITIVES TO IT.

SO THAT'S SOMETHING THAT WE'RE REALLY PROUD OF.

SO PILLAR FIVE IS TRAINING IN EDUCATION PRIMARILY.

WE HAVE OBVIOUSLY EVERY POLICE ORGANIZATION HAS STATE MANDATED TRAINING, WE HAVE CITY MANDATED TRAINING, AND WE ALSO HAVE DEPARTMENTAL INTERNALLY MANDATED TRAINING.

AND THAT'S JUST A LIST OF SOME OF THOSE.

ALL THOSE TRAININGS ARE ALSO LISTED ONLINE.

SO IF ANYONE WANTED TO GO AND LEARN MORE ABOUT WHAT WE DO AND WHAT WE TRAIN ON SPECIFICALLY, THOSE ARE SOME HIGHLIGHTS THERE.

THE LAST PILLAR UNDER 21ST CENTURY POLICING IS OFFICER WELLNESS AND SAFETY.

JUST ON HERE, WE DO PHYSICAL ASSESSMENTS EVERY SIX MONTHS FOR THEIR WELLNESS.

THE ONE THING THAT WE ARE INCORPORATING, WE'RE STARTING TO DEVELOP IT'S NOT IMPLEMENTED YET IS OUR FITNESS INCENTIVE PROGRAM TO ENCOURAGE FOLKS TO BE MORE HEALTHY, TO BE BETTER FIT. THAT MEANS THEY'RE BETTER CAPABLE TO RESPOND TO OUR CITIZENS AND PROVIDE A BETTER QUALITY OF SERVICE.

WE ALSO PROVIDE SITE FOR THE THINGS THAT THEY SEE.

IT'S CONFIDENTIAL PSYCHOLOGICAL SERVICES.

IF THEY FEEL THE NEED TO TALK TO SOMEONE, WE HAVE THAT AND WE'RE CONSISTENTLY TALKING ABOUT THAT RESOURCE FOR THEM AND THEIR FAMILIES.

SO I'LL SPEND A LITTLE MORE TIME ON OUR PERFORMANCE MEASURE.

SO IT'S GOOD TO HAVE OUR MISSION STATEMENT, IT'S GOOD TO HAVE OUR VALUES.

BUT IF YOU'RE NOT MEASURING HOW YOU KNOW, IF YOU'RE SUCCEEDING OR NOT.

AND SO SHORTLY AFTER I GOT HERE, WE DEVELOPED FOUR PERFORMANCE MEASURES THAT ARE FOUR PRIMARY WAYS THAT WE THINK CITIZENS WOULD PROBABLY FIND IMPORTANT WHEN THEY TALK ABOUT THEIR POLICE DEPARTMENTS.

AND SO THOSE FOUR PERFORMANCE MEASURES ARE CRIME RATE, TRAFFIC SAFETY, TIMELY SERVICE AND QUALITY OF SERVICE.

SO I'M GOING TO QUICKLY GO THROUGH THESE AS WE ARE A YEAR TO DATE.

YOU WILL GET THIS AS AN END OF YEAR REPORT AS WELL.

BUT HERE'S WHERE WE ARE RIGHT NOW.

SO FIRST OF ALL, CRIME RATE, JUST REAL QUICK.

A LOT OF PEOPLE DON'T UNDERSTAND THAT SOMETIMES IF THERE'S A CRIME THAT HAPPENS IN TEXAS IS NOT A CRIME THAT HAPPENS IN OTHER STATES.

DIFFERENT STATES HAVE DIFFERENT ELEMENTS OF OFFENSES THAT MAKE THEM CRIMES.

FOR INSTANCE, I'M SURE YOU'VE HEARD IN THE MOVIES, ASSAULT AND BATTERY.

WELL, TEXAS DOES NOT HAVE THE OFFENSE OF BATTERY.

IT DOESN'T EXIST, BUT OTHER STATES DO.

SO IN ORDER TO BE ABLE TO COMPARE JURISDICTION TO JURISDICTION OR CITY OR STATE TO STATE, THE FBI CAME AND THEY IDENTIFIED SPECIFIC CRIMES AND THEY.

[00:45:07]

NOW, POLICE AGENCIES REPORT THOSE CRIMES BY THAT ASSIGNED DEFINITION.

SO NOW YOU CAN COMPARE YOURSELF TO AGENCIES ACROSS THE COUNTRY AND YOU'RE COMPARING APPLES TO APPLES.

SO WHAT WE FOCUS ON IS WHAT THEY CALL THE PART ONE CRIMES.

THE BIG ONES, THE MURDER, RAPE, ROBBERY, AGGRAVATED ASSAULT, LARCENY, THEFT AND ARSON.

AND SO LAST YEAR, I WOULD SAY SO IN THE YEAR FOR LAST YEAR, IT WAS 3.46 PART ONE CRIMES PER 1000 DAYTIME POPULATION FOR WESTLAKE.

AND THIS YEAR, YEAR TO DATE, IT'S 1.87.

LET ME PUT THAT IN A LITTLE CONTEXT FOR YOU.

DALLAS LAST YEAR WAS 45.35.

FORT WORTH WAS 3316.

PLANO WAS 18.34.

SOUTH LAKE WAS 8.3.

KELLER WAS 6.29.

IN COLLIERVILLE WAS 6.26.

WOW. SO 1.87.

YEAR TO DATE IS PRETTY GOOD FOR MOST OF THESE NUMBERS GOING UP FROM YEAR TO YEAR INSTEAD OF GOING DOWN FROM 21 TO 22 IF THINGS GOTTEN WORSE.

NO, NO, THEY'RE GOING DOWN.

THEY ARE GOING DOWN. YES, SIR.

I CAN'T PROMISE YOU YEAR TO YEAR, BUT RIGHT NOW WE'RE GOING.

OKAY. BUT NOT JUST US.

WE'RE TALKING ABOUT LIKE AS A MACRO, ARE THEY GOING UP YEAR OVER YEAR, EVERYWHERE? SO I HAVE NOT LOOKED AT ALL OTHER AGENCIES.

I WILL START TARGETING THAT MORE IN DECEMBER WHEN I START GETTING MORE NUMBERS FROM THESE OTHER JURISDICTIONS.

SO RIGHT NOW I CAN CHECK OUR STUFF YEAR TO DATE, I CAN'T CHECK THE OTHER ONE.

THANK YOU. SO, YEAH, AND THAT'S WHAT I DID.

MY APOLOGIES. I MISUNDERSTOOD THE DIRECTION THERE.

OKAY. SO ANOTHER.

SO JUST THIS IS JUST SOME MAJOR STUFF.

SO WESTLAKE IS A SAFE, SAFE COMMUNITY, BUT IT'S NOT IMMUNE.

WE DON'T HAVE WALLS THAT PREVENT PEOPLE FROM SHOWING UP OR THERE ARE OFFENSES.

SO I JUST WANTED TO GIVE YOU ALL A HIGHLIGHT OF SOME OF THE MAJOR CASES THAT WE'VE HAD OVER THE LAST YEAR, YEAR AND A HALF, THAT THAT HAVE HAPPENED, THAT WE'VE BEEN SUCCESSFULLY ABLE TO INVESTIGATE, OBTAIN WARRANTS FOR AND CURRENTLY IN THE PROCESS OF PROSECUTING.

AND AGAIN, I'M NOT GOING TO GO THROUGH ALL OF THESE, BUT SOME OF THEM TO KNOW THAT YOU CAN TAKE A LOOK AT ON YOUR OWN.

WE ALSO WHAT I DIDN'T PUT OUT THERE IS WE ALSO ACKNOWLEDGED ONE OF OUR OFFICERS ON A SUICIDAL PERSON CALL THAT HAPPENED IN WESTLAKE OVER THIS YEAR.

WE BROUGHT THE OFFICER HERE BEFORE THE COUNCIL TO RECOGNIZE HIM.

I GAVE HIM A CERTIFICATE OF MERIT FOR TALKING THE YOUNG MAN OFF THE TOP OF THE PARKING GARAGE, AND THEY WERE SUICIDAL.

AND THAT'S ONE OF THE THINGS THAT I DO WANT TO CONTINUE TO DO AS PEOPLE ARE DOING THESE TYPE OF THINGS WITHIN WESTLAKE.

I WANT TO MAKE SURE I'M BRINGING THEM BEFORE YOU GUYS.

Y'ALL CAN MEET THEM. THEY CAN BE SEEN BY Y'ALL AND THE CITIZENS CAN KNOW THE GOOD WORK THAT THEY'RE DOING.

SO REALLY, CRIME TRENDS FOR WESTLAKE, THE PRIMARY TRENDS ARE PROPERTY CRIMES.

AND SO SURE, WE DO HAVE A PERSONS CRIMES, BUT MOSTLY THOSE ARE DOMESTIC PERSON ON PERSON CRIMES.

RARELY ARE THEY STRANGER ON STRANGER.

BUT THE BIGGEST THING THAT WE HAVE IS PROPERTY CRIMES.

SO OUR OFFICERS ARE WORKING.

SO I PUT IN THERE FROM 2020 TO DATE, INCLUDING THE COVID RESTRICTIONS.

WHAT THAT MEANT WAS, IS I WAS WE WERE NOT PURPOSELY INTERACTING WITH CITIZENS.

WE WERE NOT MAKING TRAFFIC STOPS DURING THAT TIME WITH COVID UNTIL WE WERE GETTING EVERYTHING UNDER WRAPS.

WE'RE TRYING TO NAVIGATE OUR WAY THROUGH THE NEW TIMES.

AND SO THAT TIME THERE WAS NO ENFORCEMENT.

AND THAT'S HOW OUR HIGHWAYS REALLY WERE BECOMING AUTO BONDS.

AND SO AFTER WE RELINQUISHED THINGS A LITTLE BIT, WE STARTED TO HAVE A LITTLE BIT MORE CONTACTS.

WE STILL HAD RESTRICTIONS IN PLACE, BUT IT WAS SLOWLY INTEGRATING BACK TO NORMAL.

BUT FROM THEN TO NOW, WE STILL 122 DWI ARRESTS, NARCOTIC ARRESTS.

AND I PUT IN THERE PRIMARILY THE LARCENY THEFTS ARE YOUR NUMBER ONE PROPERTY CRIMES.

AND IT'S PRIMARILY IF IT'S A RESIDENTIAL AREA, IT'S UNLOCKED CARS.

AND IF THERE'S ANYTHING THAT I CAN SAY RIGHT NOW TO THE TO THE COMMUNITY OF WESTLAKE IS WE LIVE IN WESTLAKE.

IT'S A SECURE PLACE.

THERE'S LOW CRIME AND THAT'S THE WAY IT SHOULD BE.

AND EVERYONE SHOULD FEEL SAFE BECAUSE IT IS.

BUT PEOPLE ALSO KNOW THAT THERE'S A FLUENCY HERE AND THEY WILL TRAVEL TO COME HERE.

AND WE HAVE VIDEO AFTER VIDEO OF KIDS WALKING DOWN THE STREET JUST CHECKING CAR DOORS AND JUST LOOKING AND SEEING WHAT'S PLAINLY VISIBLE.

IT'S THAT IT'S NOT HARD.

AND IF WE CAN JUST GET PEOPLE TO, ONE, HIDE WHAT'S IN THEIR CARS OR TAKE IT OUT INTO THE HOUSE.

AND IF YOU'RE DEAD SET ON LEAVING VALUABLES IN THE CAR, AT LEAST LOCK THE CAR.

IF I CAN JUST GET THAT, OUR CRIME RATE WOULD GO EVEN LOWER BECAUSE I KNOW THAT THERE'S BEEN THERE WERE SAMPLES THIS LAST YEAR WHERE THERE WAS A NEIGHBORHOOD THAT WAS THERE WAS SEVERAL OFFENSES IN A SHORT PERIOD OF TIME.

AND THEN WHEN WE GOT IN THE WEEDS OF THOSE OFFENSES, THOSE CARS WERE UNLOCKED, FIREARMS WHEN THOSE CARS AND THAT'S ALL THAT WAS TAKEN WAS MULTIPLE FIREARMS PEOPLE WANTED TO KEEP IN THE CARS. SO LET'S DON'T MAKE THE JOB EASY FOR THE CRIMINALS BECAUSE THEY'RE NOT THEY'RE NOT REALLY, REALLY AWESOME CRIMINALS.

THEY'RE JUST THEY'RE LOOKING FOR LOW HANGING FRUIT.

SO DO THEY IN THESE FIREARMS? DID THEY TAKE THEM TO PAWNSHOPS OR DOES IT? IT DEPENDS ON WHAT THERE IS. USUALLY IT IS.

BUT A LOT OF TIMES PAWNSHOPS, YOU KNOW, WE DO CHECKS ON PAWN SHOPS.

THERE'S A LOT OF DIFFERENT MECHANISMS TO GET RID OF THE FIREARMS.

[00:50:01]

BUT A LOT OF TIMES YOU HAVE A MUCH BETTER CHANCE OF GETTING CAUGHT GOING TO PAWN SHOPS.

SO THERE'S OTHER AVENUES THAT.

GET RID OF THEM, GET MONEY. SO, HEY, CHIEF, JUST CLARIFICATION.

WHEN YOU SAY DWI, ARREST 222, IS THAT WITHIN WESTLAKE OR WESTLAKE RESIDENCE? WITHIN WESTLAKE, JUST WITHIN.

YES, IT COULD BE PEOPLE TRAVELING PERCENT.

I'M JUST ASKING. YES, THAT'S PEOPLE TRAVELING THROUGH OK AS WELL.

MOVING ON. SO WE HAVE CRIME RATE IS ONE OF THE PERFORMANCE MEASURES.

SECOND ONE IS TRAFFIC SAFETY.

NOW, I AM PRETTY PROUD OF THIS BECAUSE SO YEAR WE HAVE THE END OF YEAR DATA FROM LAST YEAR OF 21 TO 4 REPORTABLE CRASHES THAT ARE REQUIRED BY THE STATE VERSUS HOW MANY OVERALL CRASHES THAT WE RESPONDED TO.

BUT MAYBE THEY WEREN'T AT THE LEVEL THAT NEEDED TO BE REPORTED.

AND SO WE KEEP TRACK OF ALL THOSE.

AND YOU CAN SEE THE ONES FROM 22 YEAR TO DATE, THOSE HAVE ALL GONE DOWN.

THE ONE THAT WE HAVE INCREASED WAS A FATALITY CRASH ON 114 AND IT'S UNFORTUNATE, BUT THE OTHER ONES HAVE BEEN GOING DOWN AND THAT'S HOW YOU KNOW ABOUT TRAFFIC SAFETY IS WE ALSO HAVE THE TOP THREE FACTORS FOR INTERSECTIONS FAIL TO YIELD RIGHT AWAY AT STOP SIGNS, DISREGARDING RED LIGHTS, UNSAFE LANE CHANGES AND TEXTING WHILE DRIVING.

THAT'LL DO IT. AND THEN YOU GOT THE TOP THREE LOCATIONS FOR CRASHES THERE.

I WILL BE UPDATING THIS FOR THE NEW REPORT AS WELL.

TIMELY SERVICE. THIS IS ANOTHER THING WE TAKE PRIDE ON BETWEEN OUR DISPATCH IS OUR GOAL IS FOR 90% OF THE TIME TO ANSWER 911 CALLS IN LESS THAN 10 SECONDS.

AND YEAR TO DATE, WE HAVE BEEN ANSWERING THOSE CALLS IN 99.5% OF THE TIME IN LESS THAN 10 SECONDS, FROM THE TIME THEY ANSWER THE 911 TO THE TIME THEY DISPATCH THE POLICE, IT'S 42 SECONDS AND THE TIME TO DISPATCH FIRE AND EMS. IT'S 28 SECONDS.

AND THEN THE FOUR WESTLAKE, THE FOUR PRIOR TO ONE CALLS.

OUR GOAL IS TO BE UNDER 4 MINUTES RIGHT NOW.

OUR DRIVE TIME IS 4 MINUTES AND 21 SECONDS.

SO THAT'S WHERE WE'RE AT NOW.

AND AGAIN, THERE'S THINGS THAT WE'RE WORKING OUT DATA WISE, BUT IT'S STILL GOOD.

BUT WE CAN DO BETTER BECAUSE OUR GOAL IS LESS THAN 4 MINUTES.

AND THEN AGAIN, FOR ALL PRIORITY CALLS.

LAST YEAR WE DIDN'T HAVE THIS DATA WITH OUR NEW CAT.

I WILL BY THE END OF THE YEAR. REPORT IS UNDER 12 MINUTES FOR ALL OTHER CALLS AND THAT INCLUDES ANYTHING PEOPLE CALL THE POLICE FOUR TO RESPOND TO.

WE WERE THERE AT 11 MINUTES AND 6 SECONDS ON AVERAGE, SO I'M PRETTY PROUD OF THE TIME THERE.

AND THE BIGGEST THING, THE MESSAGE THAT WE SEND, YEAH, THOSE ARE ALL DISPATCH AND PATROL RESPONSE TIMES, BUT THAT APPLIES TO ANYTHING WITHIN OUR POLICE DEPARTMENT, WHETHER WE NEED TO GET YOU NEED TO GO TO THE POLICE DEPARTMENT FOR REPORTS.

YOU NEED TO GO TO THE POLICE DEPARTMENT TO GET FINGERPRINTED.

IF YOU HAVE TO HAVE INTERACTION WITH THE POLICE DEPARTMENT WHERE WE'RE SUPPOSED TO RESPECT YOUR TIME BECAUSE NO ONE WAKES UP AND SAYS, MAN, I HOPE I CAN DEAL WITH THE POLICE DEPARTMENT TODAY. SO WE NEED TO HONOR THEIR TIME AND GET THEM OUT OF THERE.

SO AND THEN, CHIEF AND THESE TIMES LIKE THOSE ARE AVERAGES, RIGHT? SO DO YOU HAVE THE SHORTEST YOU HAVE THE TAILS OF THOSE THINGS ON BOTH SIDES.

WE I HAVE THAT DATA.

YES. YEAH, I CAN GIVE THAT TO YOU.

AND THERE'S A LOT OF TIMES DEPENDING ON, YOU KNOW, CALL CAN BE CALLED IN AND DISPATCHED A CERTAIN WAY.

OFFICERS GET ON SCENE. IT MAYBE WASN'T A PRIORITY ONE CALL AND THEY GET THERE THEY GO, OH, MAN, THIS IS MUCH MORE SERIOUS.

THEN THEY CHANGE THE CALL TYPE TO WHAT IT REALLY IS.

WELL, WHEN IT WAS ORIGINALLY DISPATCHED, IT WASN'T THAT CALL TYPE.

SO THE RESPONSE TIME COULD HAVE BEEN SLOWER BECAUSE THEY DIDN'T THINK IT WAS WHAT IT WAS UNTIL YOU GOT ON SCENE.

SO THERE'S A LOT OF LITTLE THINGS THAT AFFECT THOSE THINGS, BUT I'LL GET THAT FOR YOU ON THE ANNUAL REPORT, SIR.

AND IF YOU WANT ANY MORE IN THE WEEDS DATA ON THAT WE HAVE, I CAN GIVE YOU A LOT OF GOOD REPORTS.

I LOVE YOUR METRICS. I TOLD YOU THAT LAST YEAR I WAS IN THE AUDIENCE.

THAT WAS GREAT. GREAT STUFF.

THANK YOU, SIR. LAST THING IS, AS YOU GUYS KNOW, IN 2022, WE HAD A WESTLAKE RESIDENT SURVEY AND THAT TOP WITH 98% OF THE RESPONDENTS INDICATE AN OVERALL FEELING OF SAFETY, ESPECIALLY IN COMPARISON TO THE TEXAS AND US AVERAGE, AS WELL AS AN 89% OVERALL SATISFACTION WITH THE QUALITY OF PUBLIC SAFETY SERVICES.

I THINK WE'RE DOING A GOOD JOB.

WE'RE NOT SETTLING.

WE CAN ALWAYS IMPROVE.

WE'RE ALWAYS LOOKING FOR WAYS TO IMPROVE.

BUT I AM VERY PROUD OF THE WORK THAT WE'VE BEEN DOING MOVING FORWARD, OUR ORGANIZATION AND STRUCTURE.

AGAIN, THIS IS JUST AS AN FYI, KIND OF HOW IT'S BROKEN DOWN.

IF YOU WEREN'T AWARE, I WILL OFFER THIS TO YOU ANY TIME THERE'S NEW COUNCIL MEMBERS IN KELLER, I OFFER A ONE ON ONE ORIENTATION THAT YOU CAN COME TO OUR POLICE DEPARTMENT.

I'LL GIVE YOU A TOUR, LET YOU SEE, DISPATCH THE JAIL, ASK QUESTIONS, GET MORE IN THE WEEDS, AND I'D BE HONORED IF ANY ONE OF YOU WANT TO TAKE THAT UP.

ABSOLUTELY. AND WE'LL MAKE THAT HAPPEN.

AND YOU CAN ASK ALL THE QUESTIONS AND SEE WHATEVER YOU WANT TO SEE.

SO WE'D BE HONORED TO HAVE YOU GUYS STAFFING RIGHT NOW.

AND THAT'S AFTER THIS. LAST YEAR WE DID ADD A DETECTIVE AND WE ADDED AN SRO, AND THEN OUR DEMOGRAPHICS BROKEN DOWN BASED ON OUR SERVICE POPULATION, WHICH INCLUDES KELLER AND WESTLAKE AS OF THE 2020 CENSUS.

AND AGAIN, I'M NOT GOING TO SPEND A WHOLE LOT OF TIME ON THESE SLIDES.

SO LAST PART IS GOING TO BE SCHOOL SAFETY.

AND SO AFTER YOU'VE ALREADY HAPPENED, SOME OF THIS INFORMATION IS WHAT I PROVIDED TO KELLER AND DURING THE SUMMERTIME.

BUT I ALSO WANT TO PROVIDE THAT TO YOU AS WELL.

SO JUST TO MAKE SURE WE'RE ALL TALKING THE SAME LANGUAGE, ANY TIME A TRAGEDY LIKE THAT USUALLY HAPPENS.

IT MATTERS AND IT'S SIGNIFICANT.

SINCE COLUMBINE, THERE'S BEEN NINE MASS SCHOOL SHOOTINGS WITH THE DEATH TOTAL OF OVER FOUR.

ANY OF THEM IS TOO MUCH.

BUT THIS IS THE REALITY THAT WE'RE TALKING ABOUT WHEN IT COMES TO SCHOOL SHOOTINGS.

[00:55:03]

AND AGAIN, I'M NOT GOING TO GO THROUGH ALL OF THESE, BUT THESE ARE JUST SOME TERMS YOU WILL HEAR IN THE MEDIA, YOU'LL HEAR AROUND OUR PROFESSION.

AND KELLER IS WE HAVE INSTRUCTORS IN, AS YOU SEE, ALERT, ADVANCED LAW ENFORCEMENT RESPONSE TRAINING.

AND WE HAVE SEVERAL INSTRUCTORS THAT PROVIDE THAT TRAINING TO OUR OFFICERS.

WE DO THAT EVERY YEAR.

WE ALSO HAVE EXPANDED THAT TO JOIN WITH OUR FIRE DEPARTMENT FOR WE'LL CALL STOP THE BLEEDERS TO HELP MAKE SURE BEFORE THE FIRE DEPARTMENT ARRIVES ON SCENE, OUR OFFICERS ARE TRAINED, HAVE TOURNIQUETS, AND KNOW HOW TO RENDER THAT FIRST AID TO CITIZENS AND THEMSELVES PRIOR TO THE FIRE DEPARTMENT ARRIVING.

SELF AID. AGAIN, THAT'S JUST TO MAKE SURE THAT WE'RE ABLE TO TAKE CARE OF EACH OTHER IF WE'RE IN THOSE SITUATIONS.

OUR INITIATIVES, YOU KNOW, THIS IS JUST AN ADDITIONAL COMMUNICATION BETWEEN ALL OF THE DIFFERENT UNITS WITHIN KPD.

BUT WE ALSO PROVIDE ANY ENTITY WITHIN THE CITIZENRY THAT WOULD LIKE PRESENTATIONS TO THEIR BUSINESSES.

WE HAVE INSTRUCTORS THAT WILL COME OUT AND THEY CALL IT CRAY'S TRAINING, CIVILIAN RESPONSE TO ACTIVE SHOOTER EVENTS.

AND THIS IS TRAINING THAT OUR INSTRUCTORS WILL COME OUT AND TALK TO YOUR ORGANIZATIONS, TO YOUR CITIZENS, JUST TO GIVE THEM MORE TRAINING TO FOR THEIR OWN PERSONAL SAFETY AS WELL AS ORGANIZATIONAL SAFETY.

AND THAT'S A SERVICE WE PROVIDE FOR FREE ANYONE THAT WANTS US TO DO IT.

LAST WEEK WE WERE AT DELOITTE.

THEY BROUGHT AN FBI HEADQUARTERS WITH DELOITTE STAFF.

OUR STAFF WAS THERE JUST TO PROVIDE ADDITIONAL TRAINING TO THE DELOITTE EMPLOYEES.

IT WAS REALLY GOOD. SO THAT IS A SERVICE I WANT OUR CITIZENS TO BE AWARE OF.

JUST THIS LAST YEAR FROM EQUIPMENT PERSPECTIVE.

EVERY ONE OF OUR OFFICERS ON THE STREET HAVE RIFLES.

WE ALL HAVE RIFLE PLATES IN ADDITION TO OUR NORMAL BALLISTIC VESTS.

WE'VE INCREASED OUR MEDICAL CARE FOR OUR VEHICLES, AS WELL AS TOURNIQUETS AND MEDICAL CARE ON OUR BODIES.

SO IF YOU'RE FAR AWAY FROM YOUR VEHICLE, YOU STILL HAVE MEDICAL SUPPLIES ON YOU AND THEN ADDITIONAL TRAINING THAT EVERY ONE OF OUR OFFICERS GETS THIS RESCUE TASK FORCE. I WANTED TO PUT THAT UP THERE BECAUSE THAT'S SOMETHING THAT I THINK WE'VE BEEN DOING REALLY WELL WITH BETWEEN KELLER AND WEST LAKE IS INCORPORATING THE FIRE DEPARTMENT, BECAUSE ONCE AN ACTIVE SHOOTER HAPPENS, EVERYONE TALKS ABOUT THE OFFICERS GOING IN FIRST.

IT'S STOPPING THE THREAT.

WELL, THEN THERE'S A MIDDLE GROUND THERE THAT'S WARM WHERE YOU HAVEN'T GOT THE SUSPECT IN CUSTODY.

MAYBE HE'S CONTAINED, BUT THERE'S STILL ENOUGH AREA THAT'S CLEARED THAT YOU COULD BRING IN SOME FIRE DEPARTMENT PERSONNEL, MEDICAL PERSONNEL TO START GIVING TRIAGE AND START GIVING CARE TO PEOPLE WHILE IT'S STILL NOT COMPLETELY SECURE.

AND IT'S CALLED DEVELOPING A RESCUE TASK FORCE, WHICH IS A COMBINATION OF FIRE DEPARTMENT AND POLICE DEPARTMENT PERSONNEL WORKING TOGETHER.

AND THAT'S SOMETHING THAT WE'VE ALREADY DOING AND WE TRAIN ON THE OTHER THINGS.

I'LL MOVE FORWARD HERE.

SO WITH OUR RESOURCE OFFICERS, WHICH YOU HAVE JUST APPROVED TO HAVE ONE IN THE WEST ACADEMY, SO BASIC TRAINING FOR THEM, THEY'RE GOING TO BE NATIONAL AND TEXAS ASSOCIATION OF SRO TRAINED BOTH BASIC AND ADVANCED SCHOOLS.

THEY WILL HAVE WE WERE TALKING EARLIER ABOUT THREAT ASSESSMENTS.

THEY WILL BE TRAINED IN BEHAVIORAL AND DIGITAL THREAT ASSESSMENTS.

THEY WILL HAVE THAT TRAINING THROUGH THE SCHOOL BASED LAW ENFORCEMENT AND AGAIN, THAT'S THROUGH TEXAS STATE UNIVERSITY.

AND THEN THEY'LL ALSO HAVE ADDITIONAL TRAINING WITH STANDARD RESPONSE PROTOCOL, WHICH IS APPLICABLE IN ALL OF OUR SCHOOLS.

ONE THING JUST TO MAKE ALL CITIZENS I KNOW WE TALKED ABOUT THIS IN EXECUTIVE SESSION, BUT JUST SO EVERYONE UNDERSTANDS, SCHOOL RESOURCE OFFICERS ARE NOT JUST SIMPLY ARMED GUARDS.

THEY BRING A LOT MORE TO THE TABLE.

NUMBER ONE, THE REASON THAT THEY WERE EVEN STARTED WAS TO BUILD THAT RELATIONSHIP WITH THE KIDS.

WHEN THEY START TO GET INTO THE MIDDLE SCHOOL AREA, TO DEHUMANIZE THE BADGE AND BUILD RELATIONSHIPS WITH KIDS, TO REMOVE THE STEREOTYPES, THEN AWAY FROM THE COUNSELING AND MENTORING THEY DO THE TEACHING.

THEY ALSO KIDS ARE STARTING TO BECOME THE AGE OF DEALING WITH SUICIDAL THOUGHTS, MENTAL HEALTH ISSUES, BULLYING, NARCOTICS AND ALCOHOL CONCERNS.

THESE ARE ALL THE THINGS THAT THEY'RE STARTING TO TO BE MADE AWARE OF.

AND OUR OFFICERS ARE GOING TO BE TRAINED TO COME IN AND HELP THEM AND TEACH THEM THE REALITIES ABOUT HOW TO DEAL WITH THESE THINGS AND PROVIDE RESOURCES FOR THESE KIDS WHEN THEY START TO DEAL WITH THEM. NOW, THERE IS THAT LAW ENFORCEMENT FUNCTION, AND WE DON'T WANT TO HAVE TO USE RESOURCES OFF THE STREET TO COME TO THE SCHOOLS TO HANDLE THIS.

SO THE SCHOOL RESOURCE OFFICER CAN DO THAT.

AND THEN THE LAST THING IS WHAT WE'RE ALL TALKING ABOUT IS, YES, THEY ARE THERE TO MITIGATE AND RESPOND TO ACTIVE SHOOTER THREATS.

AND THAT IS REAL. BUT THAT IS NOT THE ONLY THING SROS DO.

BUT THE ACADEMY IS GOING TO HAVE ALL OF THAT.

SEE, CAN I JUST. YES, SIR.

JUST A POINT OF CLARIFICATION, JUST FOR PUBLIC KNOWLEDGE.

THE SRO THAT'S COMING THAT WILL COME FROM KELLER WILL BE A DEDICATED PERSON TO THE CAMPUS.

OUT OF ROTATION OF KELLER POLICE OFFICERS.

I JUST WANT TO MAKE THAT CLEAR.

YEAH. THANK YOU, SIR. SO, YEAH, EVERY SRO, WHETHER THEY'RE IN KELLER INDEPENDENT SCHOOL DISTRICT OR WESTLAKE, ONCE THEY'RE SELECTED AND THEY'RE SELECTED NOT ONLY JUST BY THE POLICE DEPARTMENT, BUT A REPRESENTATIVE FROM THE WESTLAKE ACADEMY AND THE CITY OF WESTLAKE.

ONCE THEY'RE SELECTED AND TRAINED, THEY WILL BE ASSIGNED TO THE WESTLAKE ACADEMY.

THEY WILL WORK WITH THE HEAD OF SCHOOL, SHAWN WILSON, AND THEY WILL BE THERE UNLESS THEY'RE SICK, UNLESS THEY'RE IN TRAINING, THEY'RE THAT'S THEIR ASSIGNMENT.

AND IF THEY'RE SICK OR ANYTHING, YOU HAVE A BACKFILL.

YEAH. SO IN OUR FIRST AMENDMENT FROM THAT HAPPENED LAST YEAR WAS WE EXPANDED THE ROLE OF THE TOWN MARSHAL TO SCHOOL RESOURCE DUTIES, WHO IS A WESTLAKE EMPLOYEE.

[01:00:04]

AND IF THE THE DEDICATED ASSIGNED KELLER SRO IS NOT AVAILABLE AT THE SCHOOL, THEN THE TOWN MARSHAL WILL THEN BE THE BACKUP.

NOW, THERE ARE RESPONSIBILITIES THAT THE TOWN MARSHAL HAS, LIKE BEING AT COURT ON WEDNESDAYS AND CERTAIN OTHER RESPONSIBILITIES.

IF HE'S NOT AVAILABLE THAT DAY, THE KELLER POLICE DEPARTMENT WILL THEN PROVIDE A BACKUP ON THAT DAY.

SO YOU WILL HAVE A LAW ENFORCEMENT PRESENCE IN THAT SCHOOL EVERY DAY.

SO IN YOUR OPINION, AND WE ALL 100% AGREE WE WERE SPORADIC AND NOW BECAUSE OF WHAT WE JUST PASSED, THEY'LL BE 100% COVERAGE DURING SCHOOL HOURS. YES, SIR. AND IF SOMEONE'S SICK, WE GOT A BACKUP.

IF SOMEONE HAS A FAMILY EMERGENCY, WE'VE GOT A BACKUP.

SO NOW WE BASICALLY HAVE A DEEP BENCH WITH THE KELLER POLICE IN CASE OUR SRO HAS SOMETHING GOING ON.

THAT'S CORRECT. THANK YOU.

AND IN TERMS OF THE HOURS THAT THE SRO IS AVAILABLE TO THIS SCHOOL, CAN YOU JUST CLARIFY AGAIN THAT'S AT THE DISCRETION OF THE HEAD OF SCHOOL? YES, SIR. YEAH. SO SO ONCE THEY'RE ASSIGNED, THEY'RE NOT THEY DON'T HAVE NORMAL MONDAY TO FRIDAY, 8 TO 5.

THEY'RE WORKING WITH THE HEAD OF SCHOOL AND THEY ARE GOING TO BE THERE.

AND WHATEVER TIME THEY DECIDE IS THE BEST INTEREST OF THE SCHOOL, THEY'RE GOING TO BE WORKING WITH THE HEAD OF SCHOOL FOR THOSE HOURS.

SO AND JUST ONE OTHER THING I WANT TO MENTION.

I KNOW THAT THERE WAS A COMMENT MADE EARLIER ABOUT HOW MANY APPLICANTS OR WHATEVER WE HAD FOR INTERNAL POSITIONS AND EXTERNAL POSITIONS.

LET ME JUST SAY THAT GOING THROUGH SELECTION PROCESSES AND UNTIL WE WERE ABLE TO FIND SOMEONE APPROPRIATE BECAUSE YOU'RE NOT JUST GOING TO STICK ANYONE THERE AS AN ASSIGNED PERSON, YOU WANT TO FIND THE RIGHT ONE.

AND. KELLER, OUR INDEPENDENT SCHOOL DISTRICT, HAS TO BE ON BOARD WITH THAT PERSON AS WELL.

UNTIL WE FOUND THAT PERSON.

WE HAD COVERAGE, JUST LIKE WE'RE DOING WITH YOU GUYS IS BACKFILL WITHIN THE POLICE DEPARTMENT TO THOSE SCHOOLS.

AND THEN NOW WE HAVE FOUR KELLER KELLER, SROS PERMANENTLY ASSIGNED.

CAN I JUST FOR CLARIFICATION, WE APPROVED THAT THIS IS EFFECTIVE IMMEDIATELY AND YOU'LL HAVE SOMEONE THERE TOMORROW, IS THAT CORRECT? YES, AND IT IS WILL BE A KELLER POLICE OFFICER.

SO SO TOMORROW WE HAVE TO WE JUST APPROVED IT.

SO. NO, I KNOW, I KNOW. I JUST SO WE GOT TO MAKE SO, YOU KNOW, THIS IS ALL SO ALL THE PLAYERS HAVE TO BE ON BOARD.

WE'VE GOT TO GIVE WITH THE TOWN MARSHAL.

IS HE GOING TO BE AVAILABLE TOMORROW? HE'S SUPPOSED TO BE THERE. IF HE'S NOT IN, KELLER WILL BE.

SO HE'S THE FIRST CHOICE UNTIL WE GET RIGHT NOW.

WE HAVEN'T WE HAVEN'T SELECTED ANYBODY TO BE THERE YET.

SO OUR FIRST CHOICE IS GOING TO BE THE TOWN MARSHAL WHO EXPANDED HIS DUTIES INTO SRO LAST YEAR.

SO HE WILL BE THE PRIMARY PERSON UNLESS HE HAS TOWN MARSHAL RESPONSIBILITIES.

AND THAT'S JUST A MATTER OF COMMUNICATING WITH US.

AND IF HE'S NOT THERE, THEN KELLER WILL BE THERE.

I UNDERSTAND THAT JUSTICE, BUT I JUST WANT THAT.

AND JUST TO PUT ON RECORD, ONE OF THE AMENITIES OF THIS SRO IS HIS CHILD GETS TO OR CHILDREN GET TO GO TO WESTLAKE ACADEMY.

SO THIS WILL BE A VERY DESIRABLE POSITION FOR SOMEONE THAT VALUES EDUCATION.

YES, SIR. FOR THE DURATION OF THE TIME THAT HE'S SRO.

YES AND IF HE ENDS UP LEAVING MID SCHOOL YEAR, THAT HIS CHILD, CHILD OR CHILDREN GET TO FINISH OUT, BUT THEN IT WON'T CARRY ON AFTER THAT. THEY'LL FINISH THAT SCHOOL YEAR AND THEN THAT'LL STOP.

THANK YOU. YES, SIR.

ANY OTHER QUESTIONS RIGHT NOW.

SO LAST THING. SO REAL QUICK, I JUST WANT TO HIGHLIGHT OUR NETCOM DISPATCH.

ONE OF THE BENEFITS THAT YOU'RE GETTING IS OUR DISPATCH CENTER.

I PROVIDED SOME ADDITIONAL TRAINING THAT THEY GET, BUT WITH THAT, I WANTED YOU ALL TO REMEMBER.

WE ALL HEARD ABOUT THE COLLIERVILLE HOSTAGE INCIDENT AT THE SYNAGOGUE THIS PAST YEAR.

THAT WAS OUR DISPATCHERS THAT WERE HANDLING THAT.

AND THAT WAS ONE OF THOSE TIMES.

ONE OF OUR DISPATCHERS CAME ON DUTY FOR 5 MINUTES.

SHE WAS ANSWERING A911 CALL AND ENDED UP TALKING TO THE HOSTAGE TAKER AND THE PRIEST FOR AN HOUR AND A HALF BEFORE OUR NEGOTIATORS AND FBI SWAT WERE ABLE TO GET ON SCENE.

SO YOU HAVE SOME HIGHLY TRAINED, EXPERIENCED DISPATCHERS THAT ARE THERE IN ADDITION TO THE SHOOTING AT SOUTH, LIKE THEY JUST HAPPENED THIS LAST WEEK ON 114.

THAT WAS OUR DISPATCHERS BECAUSE REMEMBER, WE'RE A REGIONAL DISPATCH CENTER.

WE PROVIDE DISPATCH SERVICES FOR SOUTH COLLIERVILLE, FIRE AND POLICE DEPARTMENT AND WESTLAKE.

SO WHEN SOMETHING HAPPENS ON OUR RADIO SYSTEM, ALL THOSE ENTITIES ARE HEARING IT AT THE SAME TIME AND GOD FORBID ANYTHING HAPPENS IN WESTLAKE THEY'RE COMING.

WE DON'T HAVE TO MAKE EXTRA CALLS.

SO IT'S JUST AN EXTENSION OF US.

SO I'M GOING TO MOVE FORWARD HERE.

TROY SO JUST A QUICK UPDATE ON WHAT WE'VE DONE AT THE WESLEY ACADEMY AS IT RELATES TO SECURITY AUDITS.

SO WE'VE HAD TWO AUDITS COMPLETED ON THE WESLEY ACADEMY CAMPUS.

AND WHEN THOSE COMPANIES CAME IN, THEY LOOKED AT THE LAYERED APPROACH.

IN OTHER WORDS, THEY'RE LOOKING AT EVERYTHING FROM MAJOR HIGHWAYS TO THE RAIL SYSTEM TO INTERNAL ROADS TO TRAFFIC.

AND SO WHEN WE DID THAT FIRST ONE, IT WAS A.

PRETTY EXTENSIVE AUDIT THAT WAS DONE.

AND SO THE SECOND ONE WE COMPLETED IN 2020 OF THIS IN 2020, AND WE'RE REQUIRED BY TO TO DO THOSE EVERY THREE YEARS FROM HERE MOVING FORWARD. SO WE'RE UP TO DO OUR ANOTHER AUDIT IN 2023.

SO WE'RE GETTING GEARED UP TO DO THAT.

SOME THINGS THAT WE HAVE IMPROVED DUE TO THOSE AUDITS RANGE FROM PUTTING FENCING AROUND THE PLAYGROUND, REWORKING THE CHECK IN PROCESS AT THE PIPE FROM WHAT IT WAS ORIGINALLY DESIGNED IN 2003.

ALSO, WE HAVE NOW HAD THE KELLER POLICE SUBSTATION THERE IN THE IN THE NYPD BUILDING ALONG WITH WE ADDED ADDITIONAL CAMERAS, ADDITIONAL

[01:05:07]

TO GO ALONG WITH THAT, WE ESTABLISH A THREAT ASSESSMENT TEAM WAS SOME OF THE RECOMMENDATIONS AS WELL.

WE LABELED BUILDINGS ALREADY MENTIONED THE LIGHTING AND ADDITIONAL CAMERAS.

WE ALSO HAD OUR FACILITY STAFF CHECKED DOORS ON THE PIPE BUILDINGS TO MAKE SURE THEY'RE LOCKED.

AT THE END OF THE DAY, WE ADDED SOME SECURITY FILM TO BOTH THE PIPE AND PIPE MAIN LOBBY DOORS AND ENTRY WINDOWS NEAR THOSE ENTRY POINTS.

WE'RE CURRENTLY IN THE PROCESS OF ADDING THUMB LATCHES TO ALL THE CLASSROOMS ON CAMPUS.

WE'VE COMPLETED THE PIPE, ONE OR TWO BUILDINGS AND PART OF THE SECONDARY BUILDING.

WE'RE STILL LOOKING FOR SOME HARDWARE TO COME IN FOR THE ARTS AND SCIENCE BUILDING.

ALSO, THE PORTABLES WERE ADDRESSED AS WELL.

WE DO MONTHLY DOOR CHECKS.

WHAT I MEAN BY THAT, WE CHECK EVERY DOOR ON CAMPUS TO MAKE SURE IT'S FUNCTIONING PROPERLY.

SO WHEN YOU HIT THE CRASH BAR, IT ACTUALLY GETS YOU OUT.

AND THEN ALSO MAKING SURE THAT THOSE DOORS STAY LOCKED THROUGHOUT THE DAY, MAKING SURE THAT ALL THOSE DEVICES ARE WORKING PROPERLY.

WE HAVE AN EMERGENCY OPERATIONS PLAN THAT WE HAVE ON CAMPUS THAT AND WE ALSO HAVE AN EMERGENCY OPERATIONS TEAM.

IT CONSISTS OF ABOUT 12 FOLKS RANGING FROM PRINCIPALS TO TEACHING STAFF.

AND WE REVIEW THAT THAT PLAN ANNUALLY OVER THE SUMMER.

AND THEN AS YOU GUYS HAVE DONE TONIGHT, WE HAVE NOW RETAINED A SOLE OFFICER.

SO THOSE ARE SOME OF THE THINGS THAT WE'VE ACCOMPLISHED OVER THE PAST YEARS WITH THESE AUDITS.

AND SO WE'RE LOOKING TO TEE UP THE NEXT AUDIT FOR 2023 AND SEE WHAT RECOMMENDATIONS COME OUT OF THAT.

AS IT RELATES TO THE ACADEMY CAMPUS.

YEAH. AND JUST JUST TO CLARIFY THAT LAST POINT YOU MADE.

SO TONIGHT WE DID GIVE DIRECTION TO STAFF TO DO ANOTHER UPDATED SECURITY AUDIT OF THE SCHOOL.

SO I JUST WANT TO MAKE SURE THAT'S CLEAR FOR THE PUBLIC AS WELL.

YES, THAT'S CORRECT. AND WE ALSO AGREED THAT WE'RE GOING TO GO OUT TO BID WITH MULTIPLE PROVIDERS, AND WE'RE NOT JUST GOING TO TAKE THE INCUMBENT FROM FROM THE LAST TIME.

THAT IS CORRECT. WELL, WE'LL LOOK AT OTHER SECURITY PROVIDERS, NOT THE ONES FROM KELLER.

AND WE MIGHT HAVE THE BEST DEAL EVER WITH THE WORST DEAL.

WE JUST DON'T KNOW. BUT WE'RE GOING TO PUT OUT THE BID.

ABSOLUTELY. ANY MORE QUESTIONS? THANKS TO OUR THANKS. LESS THAN ANY QUESTIONS FOR CHIEF.

SO THE LAST THING I WANT TO LEAVE YOU WITH AND AGAIN, THIS IS FOR FOLKS TO READ ON THEIR OWN.

THIS RIGHT HERE. SO AFTER COLUMBINE, THERE WAS THERE WAS A LADY NAMED MARY ELLEN O'TOOLE, FORMER FBI PROFILER, AND SHE STARTED TO DO RESEARCH ON THE TYPE OF FOLKS THAT WOULD DO MASS SHOOTINGS AT SCHOOLS.

LILLIS YOU KNOW THAT SIMULTANEOUSLY THERE WAS A MARISSA RANDAZZO.

SHE WAS A CHIEF PSYCHOLOGIST FOR THE SECRET SERVICE.

SHE WAS DOING SIMILAR RESEARCH FOR THE TYPE OF PEOPLE THAT WE'D BE DOING ASSASSINATION ATTEMPTS OUT OF THE BLUE.

AND I STARTED REALIZING THAT THESE TWO TYPES WERE, WERE, WERE VERY MIRRORED TO EACH OTHER.

SO THEY STARTED JOINING THE RESEARCH.

THERE'S SEVERAL PUBLICATIONS OUT THERE THAT TALK ABOUT THE FACT THAT THE DIFFERENCE BETWEEN JUST SOMEONE THAT COMMITS A MURDER VERSUS SOMEONE THAT CHOOSES TO COMMIT THESE MASS MURDERS BASED ON THE ONES THAT HAVE HAPPENED ARE THE FACT THAT THEY TALK ABOUT IT.

THEY HAVE OF THE OF THE SCHOOL SHOOTINGS, THE PEOPLE WHO ARE STILL ALIVE.

THEY SAID, I THINK ABOUT 80% OF THEM TOLD A FRIEND, TOLD A TEACHER SPECIFICALLY THAT THEY WERE GOING TO DO THIS BEFORE.

THE WHOLE PURPOSE OF THIS WAS THAT IT'S VERY, VERY IMPORTANT WE CAN DO ALL THESE FACILITY CHANGES WHICH ARE NEEDED.

I DO RECOMMEND WE DO THIS.

WE HAVE TO HAVE THE ARMED PRESENCE IN THE SCHOOL TO MITIGATE THE CIRCUMSTANCES.

ABSOLUTELY. BUT WE CAN'T NEGATE THE RESPONSIBILITY OF PSYCHOLOGISTS, COUNSELORS, THREAT ASSESSMENT TEAMS TO START REALLY EMPHASIZING AND ACTING ON THE THINGS AND THE INTEL THAT THEY HEAR AND SEE TO PREVENT THIS STUFF FROM EVER GETTING TO THAT POINT.

BECAUSE THESE KIDS ARE CRYING OUT A LOT OF TIMES.

THE ONE AT PARKLAND IN FLORIDA, THE BUFFALO SHOOTER, ROB ELEMENTARY, EVERY ONE OF THEM CRIED OUT EARLIER.

AND THERE WERE THINGS THAT POSSIBLY, IF WE CAN SHORE UP THAT'S AN ADDITIONAL EFFORT THAT WE CAN USE TO HELP PROBABLY MITIGATE THIS BEFORE IT EVER HAPPENS.

SO I ALSO LEFT A LOT OF RESOURCES, SOME LINKS FOR CITIZENS IF THEY WANTED TO GO AND LOOK AT SOME OF THESE THINGS.

IT JUST PROVIDES A LOT OF INFORMATION, ESPECIALLY ON THE FBI SIDE OR THE CENTER FOR HOMELAND DEFENSE AND SECURITY.

IT'S JUST A LOT OF GOOD RESOURCES AND PEOPLE ARE INTERESTED TO EDUCATE THEMSELVES ABOUT WHAT'S OUT THERE.

SO ONE LAST QUESTION OR POINT OF CLARIFICATION.

SO OBVIOUSLY THESE MASS SHOOTINGS IS A TRAGEDY AND IT'S THE ONE PART A LOT OF PEOPLE FOCUS ON.

BUT AS YOU KNOW, IT'S ONLY ONE PILLAR OF CAMPUS SECURITY.

SO WE'VE OBVIOUSLY TALKED ABOUT PUTTING A SYSTEM IN PLACE TO HELP MITIGATE THAT.

I THINK THERE HAVE BEEN CONCERNS ABOUT BULLYING.

AND I THINK PUBLICLY EVERYONE KNOWS WE'RE NOW REVAMPING THE BULLYING POLICIES IN THIS SCHOOL.

THAT'S AN ONGOING PROCESS.

AND THEN THE LAST ONE IS JUST DRUGS IN THE SCHOOL.

CAN YOU JUST SAY A FEW WORDS ABOUT THE ACTIVE PROTOCOLS THAT ARE BEING UNDERTAKEN TO ADDRESS THOSE SITUATIONS? YEAH. SO SO DRUGS EXIST.

WE'RE NOT IMMUNE TO THEM.

[01:10:02]

THE OTHER PART IS THAT WE HAVE PARTNERS THAT HAVE K-9 UNITS THAT WE WILL BE DOING RANDOM SEARCHES THROUGH THE SCHOOLS JUST TO MAKE SURE YOU TRUST BUT VERIFY.

RIGHT. BUT YOU WERE SAYING NATE ANDERSON'S ALREADY DOING THIS.

SO WE SAW THIS IN SOME OF THE FUTURE.

YOU HAVE BEEN DOING THIS FOR US ALREADY AND IT'S RANDOM AND IT'S OUT OF SOUTHLAKE AND IT'S NATE ANDERSON, CORRECT? YEAH, HE'S THE K-9 OFFICER.

YEAH. SO. YEAH. SO. AND IF IT WASN'T HIM, WE'D FIND ANOTHER AGENCY THAT HAS A K-9 OFFICER.

I UNDERSTAND THAT'S ONE OF THE CLARIFICATION THAT YOU'VE ALREADY BEEN DOING IT BECAUSE YOU'RE DOING AN EXCELLENT JOB, AND I APPRECIATE THAT.

THANK YOU. SO AND SO WE DO IT RANDOMLY.

AND ALSO, IF THERE'S A CONCERN THAT THERE'S A TIP, WE WILL BRING THEM IN.

THEY'RE ALSO FOR THAT AS WELL, JUST IN A PROACTIVE ATTEMPT TO TRY TO MAKE SURE.

AND IF THAT'S A DETERS KIDS FROM DOING IT, THAT'S EXCELLENT.

CHIEF, SINCE WE GOT YOU HERE, WE HAD YOU IN CLOSED SESSION.

CAN YOU TALK ABOUT YOU KNOW, SOMETIMES THINGS GET BLOWN OUT OF PROPORTION AND SENSATIONALIZE.

NOBODY LIKES A BORING STORY OR THEY'LL TURN THE CHANNEL.

CAN YOU TALK ABOUT WHAT YOU'VE EXPERIENCED IN KELLER AND WHEN YOU WERE IN PLANO AND THEN WEST LAKE IN REGARDS TO FENTANYL? SO WHEN I WAS IN PLANO, FENTANYL WASN'T.

IT WAS JUST STARTING TO BE A BIG DEAL.

AND THERE WAS THERE WAS A LOT OF MEDIA ATTENTION, AS YOU MENTIONED, ABOUT IT, AND THERE WAS A LOT OF CONCERN FROM THE OFFICER LEVEL ALL AROUND BECAUSE IT'S REAL AND IF USED IN THE RIGHT AMOUNT AND IT DOESN'T TAKE MUCH, IT CAN REALLY CAUSE SOME DAMAGE.

THE REALITY IS THAT WE ARE NOT SEEING IT A WHOLE LOT ON THE STREET LEVEL IN THIS AREA.

SO KELLER WESTLAKE, WE'RE AWARE OF IT.

WE'RE IN CONSTANT COMMUNICATION WITH OUR FEDERAL PARTNERS, WITH OUR REGIONAL PARTNERS ABOUT WHAT THEY'RE EXPERIENCING, TO SAY WE NEVER GET IT.

I CAN'T SAY THAT. BUT IT IS NOT SOMETHING THAT WE GET METHAMPHETAMINE, WE GET HEROINE, WE GET MARIJUANA A LOT.

WE GET PRESCRIPTION PILLS A LOT.

FENTANYL IS NOT SOMETHING THAT WE GET A LOT OF.

WE GET IT, BUT IT'S NOT NOTHING FOR US TO BE ALERTED THAT THERE'S A MAJOR CONCERN COMING HERE.

I THINK A LOT OF THE WAY THAT THEY'VE KIND OF PACKAGED IT ATTRACTED TO KIDS, THAT'S BEEN A MEDIA STORY, AND RIGHTFULLY SO.

A LOT OF PARENTS ARE. CONCERNED ABOUT IT, AND RIGHTFULLY SO, BECAUSE IT'S NOTHING TO PLAY WITH.

BUT WE ARE IN CONSTANT COMMUNICATION WITH DEA TO JUST KIND OF LET US KNOW.

AND THE REALITY IS IT'S NOT AS PREVALENT AS THE MEDIA MAKES IT OUT TO BE.

IT'S OUT THERE. THEY'RE TRYING.

AND BUT FOR RIGHT NOW, IT'S NOT SOMETHING THAT WE SEE A LOT OF RIGHT NOW.

THANKS FOR THAT. THANK YOU FOR THAT.

YES, SIR. AND THE QUESTION IS, DO YOU HAVE ANYTHING ELSE? THANK YOU VERY MUCH FOR YOUR TIME.

THANK YOU, MALCOLM. MY OFFER TO COME BY AND WE'LL DO IT.

GREAT JOB. THANK YOU VERY MUCH. THANK YOU SO MUCH.

APPRECIATE IT. HEY, LET'S TAKE A BREAK AT 7:05 AND WE'LL CLOSE OUT THE OTHER REMAINING TWO ITEMS HERE.

ALL RIGHT. ALL RIGHT.

GREAT. THANKS. ALL RIGHT, LET'S GO BACK IN SESSION HERE.

SO NEXT ITEM UP IS RECEIVE AN UPDATE FROM THE TOWN FINANCIAL ADVISER.

AMBER, COME ON DOWN.

GOOD EVENING, COUNCIL.

THANKS FOR BEING HERE. THANK YOU.

TONIGHT, NICK, BEULAH HILLTOP SECURITIES IS WITH US.

THERE IS NO ACTION ON THIS ITEM.

IT'S MERELY JUST AN OVERVIEW ON OUR DEBT, OUR OUTSTANDING DEBT, OUR CAPACITY, OUR BOND RATING.

NICK IS THE MANAGING DIRECTOR OF HILLTOP.

HE'S BEEN SERVING OUR TOWN FOR THREE YEARS.

AND WITH THAT, I'LL TURN IT OVER TO HIM.

GOOD EVENING, MAYOR.

MEMBERS OF THE COUNCIL. MY NAME IS NICK BULLOCK, AND I'M WITH HILLTOP SECURITIES.

AS AMBER MENTIONED, I'VE BEEN WORKING WITH THE TOWN FOR ABOUT THREE YEARS NOW AS A FINANCIAL ADVISER.

I WANTED TO GO THROUGH A QUICK PRESENTATION.

I THINK IT'S QUICK, BUT IT COVERS A LOT OF INFORMATION.

[10. Receive an update from the Town’s Financial Advisor]

I WANTED TO GO THROUGH JUST KIND OF A QUICK DEBT OVERVIEW, BOND RATINGS, AND THEN GETTING TO THE EXISTING DEBT OF THE TOWN AND CAPACITY ANALYSIS AND THEN TOUCH ON SOME LEGAL REQUIREMENTS FOR ISSUING DEBT WITHIN THE STATE OF TEXAS.

SO WHY MUNICIPALITIES USE DEBT.

AND I'M SURELY NOT HERE TO ADVOCATE FOR DEBT.

I UNDERSTAND DEBT IS A FOUR LETTER WORD, BUT THERE ARE TIMES WHEN DEBT IS THE ONLY CHOICE TO FINANCE CERTAIN CAPITAL PROJECTS, ASSETS, LONG, LONG LIVED ASSETS, EQUIPMENT.

WHAT DEBT DOES NOT FUND IS AN OPERATING BUDGET OR A BUDGET DEFICIT, SUCH AS SOMETHING YOU READ ABOUT IN THE NEWSPAPERS WITH THE FEDERAL GOVERNMENT OR ANYTHING LIKE THAT.

A LOT OF PEOPLE BELIEVE THAT MUNICIPAL DEBT ALLOWS FOR FUTURE BENEFICIARIES TO PAY THEIR SHARE OF THAT ASSET AS WELL.

[01:15:05]

THAT HELPED FUND A SPECIFIC PIECE OF INFRASTRUCTURE THAT THEY ARE ALSO UTILIZING THE FINANCE LARGER PROJECTS ON A TIMELY BASIS RATHER THAN PAY AS YOU GO FUNDING AND PAY AS YOU GO, FUNDING IS MORE OR LESS SAVING UP TO DO THAT.

I'LL GET ON MORE. I'LL TOUCH ON THAT A BIT ON THE NEXT SLIDE.

HELP MINIMIZE THE IMPACT ON THE PROPERTY TAX OR USER FEES COMPARED TO PAY AS YOU GO FUNDING.

TAKE ADVANTAGE OF TAX EXEMPT LONG TERM FINANCING THAT'S AFFORDED TO MUNICIPALITIES UNDER THE FEDERAL TAX CODE.

AND ALSO NOT ON THIS SLIDE IS THE ABILITY TO UTILIZE THE I.N.S.

PORTION OF THE MUNICIPALITY'S TAX RATE.

AS YOU MAY KNOW, AND I'M SURE YOU DO KNOW YOU HAVE THE I.N.S.

PORTION THAT'S SOLELY THERE FOR DEBT REPAYMENT, AND THEN YOU HAVE THE MAINTENANCE AND OPERATIONS AND THE NO PORTION THAT'S THERE FOR OPERATING EXPENDITURES OF THE OF THE TOWN.

THE O&M PORTION IS SOMEWHAT CAPPED AT THREE AND A HALF PERCENT BASED ON THE NEW SENATE BILL TWO.

AND BUT THE I.N.S.

PORTION, HOWEVER, IS NOT CAPPED.

SO YOU DO HAVE A REVENUE SOURCE THERE.

THEIR ALTERNATIVES ARE ISSUING DEBT.

OF COURSE, YOU CAN USE CASH RESERVES, USE YOUR EXISTING FUND BALANCE THAT CAN ERODE LIQUIDITY.

IT COULD POTENTIALLY HAVE NEGATIVE CREDIT IMPLICATIONS OR CAUSE CASH FLOW CONCERNS.

YOU COULD DEFER IMPROVEMENTS.

BUT IF YOU ARE DEFERRING IMPROVEMENTS FOR A SPECIFIC PIECE OF INFRASTRUCTURE THAT MAY RESULT IN FUTURE TAX BASED GROWTH AND EXPANSION, THEN THAT CAN COME AT A COST OF THAT FUTURE GROWTH.

AND THEN, OF COURSE, WE NOW ARE HEARING THAT WORD OF INFLATION THAT IS COULD MAKE THOSE PROJECT COSTLIER BY DEFERRING THEM INTO THE FUTURE PAY AS YOU GO FUNDING. I MENTIONED THAT ON THE PREVIOUS SLIDE.

SO WHAT I WHAT I MEAN BY THAT IS YOU'RE EFFECTIVELY GENERATING EXCESS REVENUES, USER FEES AND THEN SUCKING THAT MONEY AWAY TO USE ON A CAPITAL ASSET. AND WHILE THAT'S A POLICY DECISION, YOU'RE REALLY PUTTING THE MAJORITY OF THAT COST ON YOUR CURRENT USER, NOT THE FUTURE USERS.

AND THE THIRD BULLET POINT MAY BE DIFFICULT TO FUND AWARD LARGE PROJECTS.

SO IN THE STATE OF TEXAS, YOU HAVE TO HAVE WHAT'S CALLED APPROPRIATION AUTHORITY TO ENTER INTO LARGE CONSTRUCTION PROJECTS, MEANING IF IT'S A $10 MILLION PROJECT, YOU HAVE TO BE ABLE TO POINT AT $10 MILLION SOURCE OF FUNDS TO PAY FOR THAT PROJECT.

SO IT COULD BE DIFFICULT TO TO AWARD THOSE.

BUT AGAIN, THAT IS MORE OF A POLICY DIRECTION AND DECISION COULD RESULT IN WIDE TAX RATE FLUCTUATIONS.

AGAIN, THIS IS AS YOU'RE GENERATING THAT MONEY AND THE SENATE BILL, TWO CONSIDERATIONS WHICH I MENTIONED ON THE PREVIOUS SLIDE, MAY LIMIT YOUR ABILITY TO SAVE UP THOSE EXCESS DOLLARS THROUGH A TAX RATE TO USE ON A ON A PROJECT IN THE FUTURE.

BOND RATINGS.

I KNOW YOU'VE HEARD OF THESE BEFORE.

FITCH, MOODY'S, STANDARD AND POOR'S ARE THE THREE LARGEST RATING AGENCIES.

THE TOWN IS RATED TRIPLE-A BY STANDARD POOR'S.

YOU DO NOT HAVE A RATING BY FITCH OR MOODY'S.

WE'VE NEVER REALLY NEEDED THAT TO HAVE MORE THAN ONE RATING AND TO PAY FOR AN ADDITIONAL RATING.

S&P WITH TRIPLE-A IS THE HIGHEST ON THE RATING SCALE, HIGHER THAN EVEN THE US GOVERNMENT, WHICH IS RATED A-PLUS BY S&P.

THE HIGHER THE BOND RATING, THE LOWER THE INTEREST RATE.

SIMILAR TO CONSUMER CREDIT, THE BETTER YOUR CREDIT SCORE, THE LOWER YOUR INTEREST RATE.

CREDIT RATING CRITERIA.

AND I'M TRYING TO BOIL THIS DOWN.

THERE'S QUITE A BIT, BUT THE REVENUE SOURCE AND LEGAL AGREEMENTS PLEDGED THE BOND.

SO IS A TAX SUPPORTED DEBT OBLIGATION AS IT SELLS TAX REVENUE BOND, WHICH YOU DON'T HAVE THE ABILITY TO RAISE REVENUES ON THE DIVERSIFICATION AND STABILITY OF THE TOWN'S TAX AND REVENUE BASE, ONGOING CAPITAL NEEDS.

ARE YOU GOING TO HAVE TO FUND ADDITIONAL DEBT IN THE FUTURE OR ARE YOU GOING TO DRAW DOWN YOUR RESERVES TO PAY FOR THESE CAPITAL NEEDS? AUDITED FINANCIAL REPORTS, FUND BALANCES AND HISTORICAL TRENDS.

ONE BAD YEAR, ONE GOOD YEAR DOES NOT MAKE A TREND.

THEY LIKE TO SEE A TREND ANALYSIS AND THAT'S HOW THEY EVALUATE THEIR RATINGS.

THEN MANAGERIAL FINANCIAL POLICIES AND PROCEDURES.

THIS IS HUGE AND THE TOWN SCORES VERY WELL ON THIS.

THIS IS WELL EMBEDDED POLICIES, PROCEDURES OF MINIMUM FUND BALANCE.

HOW MUCH, HOW OFTEN BUDGET ACTUALS ARE PROVIDED TO COUNCIL EFFECTIVELY JUST CODIFIED POLICIES AND PROCEDURES OF FINANCIAL MANAGEMENT. ANY QUESTIONS? I'VE GOT A QUESTION. SO YOU'VE BEEN WORKING SPECIFICALLY WITH THE TOWN OF WESTLAKE FOR THREE YEARS, YOU SAY? YES, SIR. ARE YOU SHOCKED AT HOW WE KEEP GOING FURTHER IN DEBT?

[01:20:08]

AND SO I HAVE A CHART THAT I CAN SHOW THIS.

WHERE. GO AHEAD. WE'RE NOT.

WE'RE NOT. SO HERE'S THE THING.

I'M NEW AND I THOUGHT WE WERE DOING OKAY FINANCIALLY.

AND NOW THAT I GOT ON COUNCIL, I'M SHOCKED.

BUT, YOU KNOW, IF YOU WERE TOLD TO GO ISSUE A BOND BY THE OLD REGIME, THEN THAT'S YOUR JOB.

AND I GET IT. I'M JUST SHOCKED BECAUSE WE'VE GOT SOME CHALLENGES.

LIKE ONE OF OUR TWO PENNIES OF SALES TAX GOES BACK TO PROPERTY TAX.

SO WE REALLY ONLY HAVE ONE PENNY.

SO WITH THE ABILITY TO NOT DRIVE SALES TAX REVENUE AND THEN BASICALLY $0.07 OUT OF A DOLLAR COMES TO OUR CITY IN 93, GOES SOMEWHERE ELSE, MOST OF WHICH COLORIZED.

SO I WAS JUST KIND OF SHOCKED THAT WE WOULD SPEND SO MUCH MONEY WITH NO CLEAR PATH TO HAVE REVENUE.

AND I UNDERSTAND WHY WE'RE TRIPLE-A, BECAUSE WE COULD JUST GO RAISE TAXES AND COVER IT BECAUSE WE'RE AN AFFLUENT NEIGHBORHOOD.

BUT I JUST DON'T UNDERSTAND.

I FEEL LIKE WE'RE PUTTING OUR CITY ON CREDIT CARD DEBT TO PAY FOR OPERATIONAL THINGS, AND THAT'S NOT HEALTHY.

SO I'M JUST KIND OF SHOCKED.

SO WERE YOU JUST DOING WHAT YOU WERE TOLD? YES. SO SINCE I'VE BEEN HERE, WE'VE REFINANCED SOME DEBT.

WE SOLD SOME CEOS FOR, I THINK, FIRE EQUIPMENT, IF I'M NOT MISTAKEN.

AND CEOS ARE WHAT? I'M SORRY, CERTIFICATES OF OBLIGATION.

OKAY. IT'S A DEBT INSTRUMENT THAT CAN GET INTO THAT.

I HAVE THAT IN HERE AS WELL.

AND THEN WE REFINANCE THE HILLWOOD NOTE ACTUALLY ON THAT.

CAN YOU EXPLAIN THE HILLWOOD NOTE? BECAUSE I THINK THE AVERAGE PERSON WOULD LIKE THE WHEN DID THE INITIAL DEBT ORIGINATE, WHAT WAS THE TERMS, WHAT DID IT BALLOON TO AND THEN WHAT DO WE REFINANCE OUT AGAIN.

YES, I'LL ANSWER THAT RIGHT NOW AND WE CAN GET TO THAT HERE IN A MINUTE AS WELL.

MY UNDERSTANDING IS THE HILLWOOD NOTE ORIGINALLY STARTED IN YEAR 2000.

IT HAD A 20 YEAR TERM ON IT.

THE RATE THE INTEREST RATE ON IT WAS 6.75%.

AND THE THING ABOUT THE HILL WITH THE INITIAL DEBT WAS HOW MUCH? 5 MILLION. YES, IT'S 5 MILLION I'M SORRY.

THANK YOU. WHEN DID YOU SAY IT WAS ISSUED? 2000 AND THERE'S 20 YEARS.

SO BY MY MATH, 22, IT SHOULD HAVE BEEN GONE.

AND WHAT WAS HOW WHAT WAS THE STRUCTURE OF THAT DEBT? WAS IT JUST DID THE INTEREST ADD ON TO THE BALANCE? YES, SIR. THE UNPAID INTEREST ADDED ON TO THE BALANCE.

SO HOW MUCH THE INTEREST ACCRUED? WHENEVER. WAS THERE ANY CURRENT PAY ELEMENT OR WAS IT ALL ACCRUED? THERE IS SOME CURRENT PAY OVER TIME.

SO IS THAT THE 15 MILLION REFINANCING YOU WERE JUST TALKING ABOUT THAT OCCURRED LAST YEAR? 15 POINT SOMETHING? YES, SIR.

OKAY. WHY DID THAT JUST SHOW UP ON THE BALANCE SHEET? SO IT HAPPENED.

BUT WHY WAS THE OLD NOTE, IF YOU CAN YOU JUST JUMP TO THE SLIDE WHERE THE DEBT.

LET'S GO THROUGH THAT. WHICH SLIDE NUMBER IS THAT? THIS ONE RIGHT HERE. WELL, THAT ONE, I THINK YOU HAVE A GRAPHIC WHICH MIGHT BE EASIER WHERE I THINK IT SHOWED HISTORIC.

IT SHOWS THE DEBT INCREASING FROM 2000 TO NOW.

OH, RIGHT. OKAY. SO THIS ONE.

YEAH. SO DO YOU SEE, LIKE SUDDENLY THE 15 MILLION APPEARS, EVEN THOUGH IT'S A REFINANCING, SO.

YES. AND SO WHAT? AND I TRIED TO NOTE THIS DOWN AT THE BOTTOM.

I DID NOT INCLUDE THE HERE THE HILLWOOD INTEREST ACCRUAL FROM 2003 TO 2021.

I WAS JUST PULLING SO WE ACCRUED 15 MILLION IN INTEREST IN DEBT.

NO, THERE'S A PRINCIPAL COMPONENT RIGHT WHERE THE PRINCIPAL IS.

BUT YOU'RE SAYING YOU DIDN'T INCLUDE THE YOU SAID YOU DIDN'T INCLUDE THE ACCRUED BALANCE YOU'RE TALKING ABOUT IN YEARS 2003 THROUGH 2021. AND SO THEY WENT FROM 5 MILLION TO 16.

I THINK IT WAS THE NUMBER.

AND THEN WE REFINANCED THAT OUT ANOTHER 25 YEARS.

CORRECT. YES.

SO WHAT'S THE INTEREST ON THE NEW 25 YEARS? IT IS.

SO IF YOU LOOK AT IT HERE ON THIS SLIDE, THE LAST ONE, IT WAS SOLD AT A 2.73.

IT HAS A CALL DATE OF FEBRUARY 15TH, 2030.

SO IF YOU WANT TO PREPAID EARLY, YOU CAN DO IT AT THAT TIME.

OKAY. BUT SO WHAT'S THE OF THE LIFE? SO REALLY, IT'S AN EIGHT YEAR NOTE, NOT A 25 YEAR NOTE.

IT'S 25 YEAR AMORTIZATION.

EIGHT YEAR TRUE READJUST.

YES. SO THE BAD NEWS IS I DON'T.

INTEREST RATES AREN'T A HIGH PROBABILITY.

INTEREST RATES ARE GOING TO BE THAT LOW.

[01:25:01]

OH, IT IS FIXED, YES.

OH, THANK GOD. BUT IT'S FIXED THE WHOLE LIFE OF 25 YEARS.

YES. OKAY. SO THE 15 MILLION WILL TURN INTO HOW MUCH IN 25 YEARS? I HAVE THAT INFORMATION.

21.8 7,000,020 187.

SO WE TURNED FIVE INTO 21.5, WENT TO 17, WENT TO 23.

20 21.8 2120.

HOW DOES THAT ANSWER YOUR QUESTION OF WHY THE DEBT KEEPS GETTING.

YEAH, BUT, AND GRANTED, WE'RE NEW, WE'RE MEETING YOU.

COULD YOU COME BACK TO US AT A LATER DATE AND SAY, HEY, THIS IS WHERE YOU ALL ARE AT, THESE ARE WHAT YOUR REVENUES ARE? HOW DO WE GET OUT OF THIS JAM? BECAUSE, YOU KNOW, YEAH, CAN YOU PULL UP THIS SLIDE THAT SHOWS THE PROJECTED DEBT AND INTEREST PAYMENTS, THE DEBT BALANCE? YEAH. THIS ONE. YEAH.

SO WE'RE SHOWING HERE IN 2033, WE'RE PAYING OFF.

I DON'T KNOW HOW MUCH HERE IS THIS, YOU KNOW, THIS IS THIS ISN'T ALL THE DEBT OUTSTANDING.

YES, IT'S THIS IS ALL THE DEBT EXCEPT FOR THE SALON OF PID.

WE'RE SAYING WHAT TO TO MEAN IN PRINCIPLE.

I DON'T UNDERSTAND. AND YOUR GRAPH SHOWS 2 MILLION.

RIGHT? THAT'S RIGHT. ABOUT 2 MILLION TO 2 MILLION IN PRINCIPLE.

IS THIS THE PAYMENT? YES, THIS IS THE PAYMENT.

BUT THE NET DEBT, DO YOU HAVE THE ACTUAL AGGREGATE AMOUNT OF DEBT PROJECTED OUT GOING FORWARD? OH, NO, SIR, I DON'T HAVE THAT.

I HAVE. IF YOU LOOK ON, CAN WE GO BACK TO THIS SLIDE WHERE YOU JUST HAD THAT TABLE OF ALL THE OUTSTANDING DEBT PIECES WITH OUR INTEREST RATES IN TERMS. AND SO THE HILLWOOD DEBT IS BEING PAID OUT OF THE UTILITY FUND, CORRECT.

BECAUSE IT WAS ALL FOR WATER LINE AND PUMP STATION.

SO WE OVER THE LAST 20 YEARS DIDN'T SET ASIDE MONEY JUST TO TRY TO DRIVE THAT DOWN.

WE DID BUY THE CONTRACT.

SO THE CONTRACT CALLED OUT THE TERMS FOR REPAYMENT AND IDENTIFIED THE REPAYMENT STRUCTURE.

AND SO WE PAID PER CONTRACT.

SO IT WAS NOT A IT WAS A CONTRACT DEBT.

SO DID THE ATTORNEY GENERAL WHEN THE ATTORNEY GENERAL HAD TO REVIEW BONDS ISSUED.

DO THEY REVIEW THIS DEBT? I DON'T KNOW.

BUT I WILL BASED ON BASED OFF CONVERSATION WITH OWN COUNSEL, THE CONCLUSION WAS NO.

OKAY. SO AND SO, JUST TO TOUCH ON A LITTLE BIT AND CLOSE THE LOOP ON THE HILLWOOD DEBT.

IT'S MATURED 20 YEARS AFTER 2000, SO.

YES, MA'AM.

AND AND SO AT THAT TIME, UNDER THE EVENT OF DEFAULT OF THE AGREEMENT, THEN IF THERE WERE STILL A BALANCE, THE TOWN HAD TO REPAY THAT OVER A TEN YEAR PERIOD AT THE 6.75%.

AND SO AT.

SO THEN THE TOWN DECIDED TO LET'S TRY TO NEGOTIATE WITH HILLWOOD AND DETERMINE IF THERE'S ANYTHING WE CAN DO ABOUT THIS. AND SO AN EXTENSION AMENDMENT TO THAT CONTRACT WAS MADE TO DECEMBER OF 20, 2021, RIGHT? YES. AND AT THAT TIME, IF THERE WAS JUST SEE IF SOMETHING COULD COME ABOUT IN TERMS OF WHY WE NEGOTIATED.

CAN I GO BACK A LITTLE BIT? SO HILLTOP SECURITIES IS OUR AGENT FOR GETTING US BONDS, CORRECT? YES, SIR. THEN WHY WOULD YOU ALLOW US TO NOT BE IN COMPLIANCE WITH THE ATTORNEY GENERAL THAT WE'RE SUPPOSED TO REVIEW THIS BONDS? ISN'T THAT YOUR OBLIGATION AS BEING OUR AGENT FOR THIS? WELL, HILLTOP CAME IN JUST THREE YEARS AGO.

THIS GOES BACK TO 22,000.

YEAR 2000. OKAY.

WHAT DID WE GET FOR THE BOND? FOR THE 5 MILLION? WHAT DO WE GET? WHAT WAS PAID FOR THAT? THE PUMP STATION AND ALL THE TRANSMISSION LINE FROM THE PUMP STATION TO THE WATER TOWER.

AND TO HAVE THIS MINE GOING THROUGH TOWN.

OKAY. AND AGAIN, I'M TRYING TO GET UP TO SPEED.

WHEN HILLTOP WON THE BUSINESS THREE YEARS AGO.

WAS THERE A BID PROCESS OR WERE YOU JUST AWARDED IT? I WAS AWARDED IT SO THERE WASN'T A BID PROCESS.

OKAY. WHAT IS YOUR COMMISSION WHEN YOU GO GET US A BOND? WE HAVE A SET FEE STRUCTURE WITH THE TOWN.

I DON'T HAVE. IT'S A SLIDING SCALE.

I CAN. THE TOWN HAS A COPY OF THAT.

[01:30:01]

NO, SIR. OKAY.

SO SLIDE SEVEN THE EXISTING DEBT OVERVIEW.

THE SHOWS OF ALL THE DEBT ISSUANCES THAT ARE OUTSTANDING RIGHT NOW, THE ORIGINAL PAH, THE TRUE INTEREST COST, THAT IS KIND OF THE AVERAGE INTEREST RATE. IT'S MEASURED AT A SPECIFIC MOMENT IN TIME AT ISSUANCE, EXISTING PAR WHAT'S OUTSTANDING, THE OUTSTANDING COUPON RATES, THE CALL DATE, AGAIN, THAT'S WHEN YOU HAVE THE ABILITY TO EITHER PREPAY OR REFINANCE AND THEN THE MATURITY OF EACH ONE AND THEN THE REPAYMENT SOURCE, AS IS SHOWN ON THE RIGHT HAND SIDE, THE HISTORICAL PRINCIPLE OUTSTANDING.

AGAIN, THIS DOES NOT INCLUDE THE SALON OF PID DEBT.

THIS IS JUST YOUR GO TAX DEBT.

IT ALSO DOES NOT INCLUDE THAT INTEREST ACCRUAL ON THE HILLWOOD DEBT OVER TIME.

IF YOU LOOK ON YOUR BALANCE SHEET OF YOUR UTILITY FUND, YOU CAN SEE THAT AS AN INTEREST ACCRUED THERE.

THAT SHOWS UP IN A CONTRACTUAL DEBT THAT SHOWS UP ON THE BALANCE SHEET.

THAT'S NOTHING THAT'S NOT INCLUDED HERE, BUT IT IS INCLUDED IN 2022.

SO THAT'S WHAT MAKES IT. BUT JUST TO CLARIFY, THE INTEREST THAT ACCRUED IS NOW REFLECTED BECAUSE OF THE REFINANCING.

IT'S ALL THAT'S BEEN CONVERTED TO PRINCIPAL, RIGHT? SO, SO IS IT CORRECT IN THAT WE ACCRUED 15 MILLION IN INTEREST SINCE THE BOND WAS ORIGINALLY? IT WASN'T.

IT WAS 15 MILLION.

IT WAS YOU.

BUT THE BOND THAT GOT REFINANCED WAS 15 AND CHANGE, RIGHT.

THAT'S OKAY. BUT SO WE'RE GOING HERE FROM 35 TO WHATEVER THE NUMBER HERE IS.

THAT'S ABOUT 15 MILLION ADDITIONAL DEBT OBLIGATION THAT CAME ON HERE IN 2022.

AND THE ONLY THING THAT'S MISSING HISTORICALLY WAS THE ACCRUED INTEREST.

SO I'M JUST RIGHT, THE THE 22 BONDS REFUNDED 15,610,000.

RIGHT. APPROXIMATELY 5 MILLION OF THAT WAS PRINCIPAL.

OKAY. IT WAS ALMOST LIKE A ZERO COUPON BOND AT 6.75.

IN OTHER TOWNS AND OTHER PLACES.

HAVE YOU SEEN THIS BEEN DONE BEFORE OR YOU HAVE A BASICALLY OFF BALANCE SHEET? I MEAN, IT'S ON BALANCE SHEETS, PROBABLY SOMEWHERE IN THE DOCUMENT, BUT IT'S I MEAN, BY THEIR OWN SLIDES HERE, IT'S KIND OF OFF BALANCE SHEET.

HAVE YOU SEEN THAT BEFORE? SO THIS WAS ON THE BALANCE SHEET.

I MEAN, YOUR YOUR AUDITORS ACCOUNTED FOR IT IN YOUR UTILITY FUND.

BUT I'VE SEEN LIKE REIMBURSEMENT OBLIGATIONS.

OTHER TOWNS HAVE DONE REIMBURSEMENT AGREEMENTS.

SO I HAVE SEEN THIS BEFORE.

BUT THIS ONE, THE TEN YEAR REPAYMENT AT THE END OF THE TERM OF THAT AGREEMENT WAS A REALLY SPIKED YOUR UTILITY RATES TO REPAY THAT.

SO THAT'S A LITTLE BIT UNCOMMON.

YEAH. SO WE HAD TO DRIVE UP UTILITY RATES TO PAY FOR THIS PUMP STATION.

SO WE KNOW.

SO WHAT HE WAS SAYING WAS IN ORDER TO PAY THAT TEN YEAR PAY OFF SO THAT THERE WAS A DEFAULT TRIGGER MECHANISM BY CONTRACT, WHICH MEANT THAT IF WE ISSUED HILLWOOD AND NOTICED THE DEFAULT, WE HAD TO DO THAT SIX MONTHS PRIOR TO THE ACTUAL DATE, THEN THAT WOULD TRIGGER A AUTOMATICALLY WHERE WE WOULD HAVE TO GET WITH HILLWOOD MUTUALLY HIGHER RATE ANALYST OR RIGHT ANALYST WOULD THEN SET THE RATES TO PAY HILLWOOD BACK IN TEN YEARS ON THAT 16 MILLION EXTENDED OUT FOR TEN YEARS AT 6.75% AND SO THAT WOULD HAVE BEEN APPROXIMATELY $2 MILLION PER YEAR THAT WE WOULD HAVE.

I THINK THE MAYOR IS SAYING WE WEREN'T KEEPING CURRENT WITH OUR INTEREST PAYMENTS.

WE WERE ACCRUING AND DEFERRING THEM.

THAT IS CORRECT. RIGHT.

SO YOU'RE SO THE OTHER SIDE THAT SAYS YOU HAVE YOU ISSUED DEBT OF FUTURE UTILITY RATES, THE CURRENT BOND PAYMENT, IT'S ABOUT 875,000. AND THE UTILITY FUND HAD CAPACITY OF ABOUT 875 900,000 TO PAY THAT.

SO WE DIDN'T SPIKE THEM. PEOPLE ARE PAYING A LOT EXTRA FOR REALLY BAD DEBT DEAL.

CAN YOU REAL QUICK AND THANK YOU FOR BEING HERE CAN YOU GO BACK TO THE SLIDE WHEN IT SHOWS INTEREST RATES? BECAUSE I WANT YOUR OPINION ON SOMETHING.

SO WE'RE IN A PREDICAMENT THAT WE INHERITED AND IT WAS A SURPRISE.

BUT WOULD YOU SAY THE GOOD NEWS IS WE'RE LOCKED IN AT VERY FAVORABLE INTEREST RATES FOR THIS SURPRISE BAD DEBT THING THAT WE FOUND ALL THOSE FIXED? YES, SIR.

SO INFLATION IS OUR FRIEND A LITTLE BIT AND WE'VE MANAGED TO LOCK IN LOW.

[01:35:03]

THAT'S A STANDARD.

WHENEVER WE DID THE 21 AND THE 22 DEALS, THE MARKET IS COMPLETELY DIFFERENT.

AS YOU I KNOW YOU ALL ARE FINANCIALLY SAVVY, BUT IT'S BEING IN FIXED INCOME RIGHT NOW.

IT'S PRETTY TOUGH. SO WE WERE ABLE TO, NUMBER ONE, GET AWAY WITH A SHORTER PREPAYMENT AT NO COST AND YES, LOCK IN INCREDIBLY LOW.

SO THAT'S THE GOOD NEWS.

THE BAD NEWS IS BY ISSUING MORE BONDS, WE'RE LIKE A PERSON OPENING UP ANOTHER CREDIT CARD AS A CITY IN A WAY.

BUT I LOOK AT IT AS YOU STOP THE BLEEDING ON A 6.75% OBLIGATION.

I MEAN, THAT WAS MASSIVE, REALLY.

AND IT WAS SO YOU REPLACE IT WITH A 273 SET STRUCTURE.

IT'S PRE PAYABLE AND 2030.

SO EIGHT YEARS FROM NOW IF YOU GENERATED X, ASSUMING WE HAD A WAY TO MAKE SOME MONEY TO PREPAY IT.

BUT THE ALTERNATIVE WAS THAT NOTE WOULD HAVE STAYED OUTSTANDING AND YOU HAD TO AMORTIZE THAT OVER A TEN YEAR PERIOD.

I AGREE. IF WE HAD A TIME MACHINE WE WOULD HAVE GOT TO FIGURED OUT A WAY TO PAY THAT 5 MILLION OFF A LONG TIME AGO.

SO IT DIDN'T TURN INTO 21 MILLION.

BUT BUT I GUESS ON THE RECORD, THE GOOD NEWS OUT OF ALL OF THIS IS WE DO HAVE LONG TERM LOWER THAN MARKET INTEREST RATES LOCKED IN.

ABSOLUTELY. FOR A LONG TIME.

I THINK IF YOU'RE SELLING 20 YEAR BONDS RIGHT NOW, YOU'RE AT ABOUT A 4.50.

ALL RIGHT. SO THIS IS ANOTHER CHART.

IT'S SIMILAR TO THE PREVIOUS CHART, BUT WHAT I DID WAS I BACKED OUT ALL THE DEBT THAT IS REPAID BY SALES TAXES AND UTILITY FUNDS BASED ON YOUR 22 BUDGET.

NOW, WHAT I WANTED TO POINT OUT HERE IS THAT YOU HAVE SOME NATURAL DECLINES IN YOUR DEBT PROFILE.

SO FOR EXAMPLE, IN 2024 YOU GO FROM 1.2 MILLION TO ABOUT 663,000.

AND THEN IN 2032 YOU GO FROM ABOUT 600,000 DOWN TO ABOUT 200,000.

SO THAT IS IF YOU WERE TO SAY WE WANT TO KEEP OUR PAYMENTS LEVEL, WHAT IS OUR CAPACITY? I HAVE THAT INFORMATION FOR YOU.

BUT THIS IS VERY A FAVORABLE DEBT PROFILE.

IT'S NOT ASCENDING.

IT'S DECLINING. SO YOU HAVE, I GUESS, ORGANIC DEBT CAPACITY AS TIME GOES BY.

IS THAT BECAUSE THE DEBT'S AMORTIZING OUT BY THESE PERIODS OR THAT'S WHAT'S HAPPENING? YES. AND EVERY TIME THE TOWN HAS DONE A REFINANCING, IT HAS NOT EXTENDED THE TERM.

IT STAYED WITHIN THE ORIGINAL TERM OF THAT DEBT.

SO DEBT CAPACITY.

I GUESS IN SUMMARY, IT'S YOU LOOK AT YOUR PREVIOUS OBLIGATIONS SIMILAR TO THAT CHART CHANGE IN NET ASSESSED VALUATION.

SO ONE PENNY ON A ON TODAY'S TAX BASE PRODUCES LESS THAN ONE PENNY ON YOUR TAX BASE MAYBE TEN YEARS FROM NOW, WHICH IS GONE UP IN SIZE RETIREMENT OF OLD DEBT, A REPAYMENT SCHEDULE.

SO IF YOU'RE GOING TO COMPRESS YOUR YOUR NEW DEBT, THEN OF COURSE THE SHORT END OF THE REPAYMENT PERIOD, YOUR ANNUAL PAYMENTS WILL BE HIGHER, THE TAX RATE SPLIT AND THE DEBT LEVY. SO PERHAPS YOU SAID, WELL, WHAT WE GET HERE FROM OUR DEBT FALL OFF ISN'T ENOUGH TO PRODUCE WHAT WE NEED.

SO THEREFORE WE WANT TO, BUT WE DON'T WANT TO RAISE OUR TOTAL TAX RATE.

SO YOU COULD REALLOCATE IT BETWEEN M&O AND I&A, IF THAT'S IF YOUR O&M BUDGET COULD ALLOW FOR THAT.

SO HIGH LEVEL SUMMARY OF YOUR DEBT CAPACITY ANALYSIS.

SO ASSUMING FOR EVERY $1 MILLION OF DEBT ISSUED AND STRUCTURED AS LEVEL ANNUAL PRINCIPAL PAYMENTS, YOU'RE LOOKING AT ROUGHLY $80,000 PER YEAR.

THAT'S BASED ON A 5% INTEREST RATE.

JUST TRYING TO BE A LITTLE BIT CONSERVATIVE ON A 25 YEAR REPAYMENT, YOU'RE LOOKING AT ABOUT 75,000 PER YEAR.

SO SO THE TOWN'S EXISTING TAX SUPPORTED DEBT FROM THAT PREVIOUS CHART FALLS FROM $1.2 MILLION TO $660,000.

SO A $580,000 DECLINE EQUATES TO ABOUT $7.2 MILLION IN NEAR TERM CAPACITY IN 2024.

WHENEVER YOU SELL DEBT, YOU SELL IT IN ONE YEAR AND THEN YOU WAIT FOR THE FOLLOWING BUDGET CYCLE BEFORE YOU PUT YOUR FIRST PAYMENT SO THAT YOU HAVE THE ABILITY TO SET IT, SET YOUR BUDGET LEVY. IT'S SUFFICIENT TAX.

AND THEN CARRYING THAT FORWARD FROM FISCAL 2032 TO 23 YEAR, YOU HAVE ABOUT A 400,000 DECLINE THAT EQUATES TO ABOUT $5 MILLION OF LONG TERM DEBT CAPACITY OUT IN THAT YEAR JUST FROM THE DECLINE IN YOUR DEBT PROFILE ALONE.

SO BASED ON THE TOWN'S CURRENT TAX BASE, EACH PENNY PRODUCES ABOUT 190,000.

SO THEREFORE EACH PENNY EQUALS ABOUT $2.4 MILLION OF DEBT CAPACITY, LEGAL REQUIREMENTS OF ISSUING DEBT.

[01:40:05]

ALL DEBT OBLIGATIONS MUST BE APPROVED BY THE CITY COUNCIL AND BY THE TEXAS ATTORNEY GENERAL.

SO IN THE LAST LEGISLATIVE SESSION, THE HOUSE PASSED WHAT'S CALLED HOUSE BILL 1869.

I DON'T KNOW IF YOU'RE AWARE OF THAT, BUT NOW REQUIRES THAT CERTAIN PROJECTS MUST BE VOTED IN ORDER TO BE UTILIZED ON THE INSIDE OF THE TAX RATE.

AND SO WHAT THAT IS, IS NEW KEYWORD, NEW CITY FACILITIES SUCH AS LIBRARY, ANIMAL CONTROL, CITY HALL, CITY HALL, SCHOOL FACILITIES WOULD HAVE TO BE VOTED IN THE TOWN.

EVEN THOUGH IT'S YOUR SHOW.

IN THE PAST, WE USE CERTIFICATE OF OBLIGATIONS WHICH REQUIRED NO VOTE.

THAT'S THAT'S CORRECT. AND I'LL GET TO THAT IN THAT TABLE JUST BELOW US.

YES, SIR. PUBLIC SAFETY, ROADS, PARKS CAN STILL BE ISSUED WITHOUT A VOTE THROUGH THE CERTIFICATE OF OBLIGATION PROCESS, AND THAT CAN STILL GO ON THE SIDE OF THE TAX RATE.

SO SOME OF THE MOST COMMON DEBT INSTRUMENTS, GENERAL OBLIGATION BONDS, CERTIFICATES OF OBLIGATION, TAX NOTES, REVENUE BONDS, PUBLIC APPROVAL, NOTICE REQUIREMENTS OF GENERAL OBLIGATION BONDS HAVE TO HAVE A BOND ELECTION EITHER MAY OR NOVEMBER UNDER THE CURRENT LAW.

CERTIFICATES OF OBLIGATION.

IN ORDER TO ISSUE THOSE, YOU HAVE TO PUBLISH NOTICE IN THE LOCAL PAPER TWICE, WITH THE FIRST PUBLICATION BEING AT LEAST 46 DAYS BEFORE THE COUNCIL WOULD CONSIDER APPROVAL OF THAT DEBT. REAL QUICK, IN YOUR THREE YEARS OF WORKING WITH THE TOWN, HOW MANY CEOS HAVE HAVE WE AS THE PAST ADMINISTRATION? JUST THE ONE. JUST ONE. HOW MUCH WAS THAT FOR? AGAIN, IT WAS FOR, I WANT TO SAY BALLPARK, $3.2 MILLION.

THANK YOU. AND THEN, OF COURSE, TAX NOTES.

MAYBE THAT WAS JUST A ONE CO SO WHERE WAS THE OTHER BOND, THE REFINANCE FOR THE 16 MILLION? WAS THAT A GEO? YES, SIR.

THAT'S A GENERAL OBLIGATION REFUNDING BOND AND THAT IF YOU IT'S UNDER CHAPTER 1207 DOES NOT REQUIRE A VOTE OR PUBLICATION SO LONG AS YOU'RE REFUNDING OR REFINANCING ANOTHER DEBT OBLIGATION.

SO WE BASICALLY HAD CO CO FOR 3.4 MILLION THAT WE DIDN'T HAVE TO TELL ANYBODY.

WE PUT IT IN A NEWSPAPER, MAYBE NOT.

WE PASSED ADMINISTRATIVE, PUT IT IN THE NEWSPAPER, BUT DID NOT NEED THE CITY TO APPROVE AND THE REFINANCE OF ROUGHLY 16.8 MILLION.

DID THEY HAVE TO PUT THAT IN ANY PUBLICATION? THEY JUST COULD REFINANCE IT.

YOU CAN JUST REFINANCE IT. SO BASICALLY IT'S ABOUT 20 MILLION BUCKS THAT JUST GOT REDONE WITHOUT MUCH.

TWO NOTICE TO THE CITY, THE RESIDENTS.

I MEAN, THERE WASN'T A VOTE.

YES. AND THAT'S JUST WHAT I WANT TO GET ON RECORD, BECAUSE AS YOU SEE THE CHART, WE SPIKE UP IN DEBT AND THERE'S, YOU KNOW, AND BASICALLY THERE'S 40% OF IT THAT JUST KIND OF GOT DONE. HOWEVER, THEY WANTED CITY OF WESTLAKE EVER DONE ON BOND VOTE.

EVER. TROY IN 2007 OR EIGHT.

THE ARTS AND SCIENCE, I THOUGHT WAS I THOUGHT IT WAS TERRIFIC.

THAT WASN'T ABOUT, WAS IT? WE'VE NEVER DONE SO. WE'VE NEVER DONE A BOND VOTE IN THIS TOWN, EVER.

SO BASICALLY THERE'S 48 MILLION WORTH OF DEBT THAT THE AVERAGE CITIZEN DID NOT REALIZE.

I DIDN'T REALIZE UNTIL I BECAME ON THE COUNCIL, BECAUSE WE'VE NEVER REALLY LET FOLKS VOTE AND KNOW ABOUT IT.

YOU KNOW, AND AS I THINK ABOUT THIS, THE CHART THAT SHOWS THE HISTORICAL PRINCIPAL BALANCES, I THINK I'M DOING IT DISSERVICE BY NOT INCLUDING THE INTEREST ACCRUAL FROM THE HILLWOOD NOTE.

SO I WILL FOLLOW UP WITH AMBER AND PUT THAT IN JUST SO YOU CAN HAVE A BETTER UNDERSTANDING OF HOW THAT ACCRUAL WORKED OVER THOSE OVER THAT TIME PERIOD RATHER THAN JUST IT LOOKS LIKE THE SOMEONE POPPED THE CLUTCH AND THIS BIG SMILE.

YEAH, BUT IT WAS STILL PRIOR COUNSEL PUSHING INTEREST ONTO FUTURE COUNCIL.

I MEAN, THAT'S THE REALITY.

WITHOUT AN ABILITY TO PAY IT, RIGHT IN THE FORESEEABLE FUTURE.

THEY TOOK ON DEBT THEY COULDN'T AFFORD IT, CHOSE NOT TO PAY CURRENTLY, SO THEY ACCRUED IT AND THEN THEY REFINANCE IT AT A HIGHER PRINCIPAL OBLIGATION.

AND I THINK THAT'S WHAT WE'RE TRYING TO CLEAR AND BUILD STRUCTURES LIKE THE FIRE STATION.

WE LOVE YOU, THE FIREMAN, BUT BUILT A FIRE STATION WITH NO FORESEEABLE WAY TO PAY FOR IT.

IT'S LIKE PUTTING A FIRE STATION ON A CREDIT CARD.

AND SO IT'D BE ONE THING IF WE GOT BLINDSIDED WITH SOMETHING AS A CITY OR A COUNCIL, THE PAST COUNCIL, AND SOMETHING BAD REALLY HAPPENED.

AND WE DIDN'T REALIZE IT, BUT WE LITERALLY KNEW THERE WAS NO WAY WE COULD PAY THIS AND JUST KEPT BURYING OURSELVES IN DEBT.

I MEAN, YOU SEE A LOT OF CITIES, CITIES AND TOWNS IS A DEADLY GAME.

IT'S A KICK THE CAN. OF COURSE IT IS.

SO THE BUS STOPS THAT COST LIKE 500,000.

[01:45:03]

YEAH, THOSE THOSE BUS STOPS WERE NOT 500,000.

I BELIEVE THEY WERE 60,000 EACH.

EACH. THERE'S HOW MANY OF THEM? THREE. HOW MANY BUSSES COME TO MIND.

WELL, THOSE ARE REST STATIONS.

THEY'RE NOT BUS STOPS. ALL RIGHT THEN, OF COURSE YOU HAVE TAX NOTES.

THERE ARE NO PUBLIC APPROVAL OR NOTICE REQUIREMENTS THERE.

AND I SHOULD SAY, IF YOU LOOK AT OTHER CONSIDERATIONS, TAX NOTES ARE LIMITED TO SEVEN YEARS.

THEY'RE TYPICALLY USED FOR EQUIPMENT PURCHASES AND THEN REVENUE BONDS, NO PUBLIC APPROVAL NOTICE REQUIREMENTS SECURED SOLELY BY REVENUES, NO TAXES, MANDATORY BOND COVENANTS, HIGHER INTEREST RATE AND TAX SECURED DEBT.

SO ON THE GENERAL OBLIGATION BONDS, KIND OF LOOKING DOWN SOMETHING TO NOTE THAT IF YOU CALL AN ELECTION AND THE ELECTION FAILS, THEN YOU CANNOT ISSUE COS FOR THAT PROJECT FOR THREE YEARS.

SO IF IT'S A CRITICAL PIECE OF INFRASTRUCTURE, THE ELECTION FAILS.

YOU'RE BOXED OUT FOR THREE YEARS.

CERTIFICATES OF OBLIGATION, YOU KNOW, YOU PUBLISH NOTICE IF BY THE TIME YOU SELL THE DEBT, YOU RECEIVE A PETITION THAT CONTAINS AT LEAST 5% OF THE REGISTERED VOTERS, THEY CAN STOP THE ISSUANCE OF THEIR CERTIFICATES OF OBLIGATION THAT AND FORCE IT TO AN ELECTION.

IS THERE A FORMAL FORM OF THIS PETITION? NO, BUT THERE'S NOT.

BUT IT DOES. THE CITY, THE TOWN SECRETARY WOULD HAVE TO CONFIRM THAT THIS IS REGISTERED VOTERS.

AND I DON'T KNOW.

I'M SURE BY STATUTE THERE'S SOME SORT OF YOU NEED ADDRESSES AND MAYBE VOTER ID STUFF, BUT I DON'T KNOW THE ANSWER TO THAT.

BUT I'VE SEEN THAT BEFORE.

PROCESS FOR ISSUING DEBT.

THIS IS JUST A QUICK OVERVIEW.

PHASE ONE, DEVELOP A FINANCING PROGRAM.

TYPICALLY, WE ARE ALWAYS IN PHASE ONE.

IF I'M MONITORING REFUNDING.

REFINANCING POSSIBILITIES ARE JUST LOOKING AT VARIOUS SCENARIOS.

WE SIT IN THIS SITUATION IN THAT PHASE.

PHASES TWO THROUGH SIX.

THAT'S REALLY THE MEAT OF THE ISSUANCE PROCESS.

THAT TAKES TYPICALLY ABOUT 90 DAYS AND THAT IS PREPARING THE DOCUMENTATION THAT WE CALL THE PRELIMINARY OFFICIAL STATEMENT, KIND OF LIKE AN OFFERING PROSPECTUS RATING AGENCY REVIEWS AND CALLS SELL OF THE DEBT, CLOSING THE WHENEVER THE TOWN APPROVES THE DEBT OBLIGATION, IT TYPICALLY TAKES ABOUT 30 DAYS FOR THE TEXAS ATTORNEY GENERAL TO RENDER THEIR OPINION TO.

SO THEN AFTER THAT, YOU CAN CLOSE AND OF COURSE, PHASE SEVEN POST ISSUANCE, RECORD KEEPING AND REPORTING THAT THAT GOES ON FOREVER.

I MEAN, THAT'S YOUR SEC REPORTING.

THE TOWN HAS TO FILE AN ANNUAL UPDATE, KIND OF LIKE A 10-K OR 10-Q FOR THE CORPORATE WORLD.

I'LL STOP YOU REAL QUICK.

WHAT SINCE THIS IS WHAT YOU DO FOR A LIVING, HOW MANY CITIES LIKE WHAT PERCENTAGE OF TEXAS CITIES BALLPARK HAVE DEBT VERSUS SURPLUS? I DON'T UNDERSTAND. I'M SORRY.

I DON'T UNDERSTAND THAT. LIKE WE'RE IN DEBT.

ANOTHER CITY MIGHT HAVE A SURPLUS.

LIKE WHAT? WHAT? WHAT'S THE AVERAGE THAT YOU SEE? SO I GUESS I HAVE TO.

I DON'T UNDERSTAND.

BECAUSE IF YOU LOOK AT, LIKE, FOR EXAMPLE, YOUR BALANCE SHEET, LIKE A CORPORATE BALANCE SHEET, IT'S GOING TO SHOW ASSETS, LIABILITIES, RETAINED EARNINGS.

I UNDERSTAND A BALANCE SHEET.

SO BUT HERE'S HOW I LOOK AT IT.

WE GOT ROUGHLY 6 TO 700 ADULTS IN OUR TOWN AND WE HAVE $50 MILLION WORTH OF DEBT.

I DON'T KNOW WHAT THE RATIO IS, BUT THAT CAN'T BE GOOD.

AND SINCE THIS IS WHAT YOU DO FOR A LIVING, EITHER ARE BREAKEVEN SURPLUS OR DEFICIT.

WE HAVE A DEFICIT. WE HAVE 700 ADULTS, ROUGHLY WITH 50 MILLION.

THAT SEEMS ABSURD.

DOES THAT SEEM ABSURD TO YOU? I'M SORRY. I'M HAVING TROUBLE.

DOES DOES DOES THAT SEEM ABSURD? 50 MILLION WORTH OF DEBT FOR 700 PEOPLE IF WE LOOKED AT DEBT PER CAPITA.

SO. SO OF COURSE, HOW DO WE LOOK COMPARED TO OTHER TOWNS? YEAH, YOU'RE HIGH.

BUT WHEN YOU LOOK AT DEBT PER ASSESSED VALUATION, YOU'RE AFFORDED A TRIPLE-A BOND RATING, WHICH IS LESS VALUE.

THAT'S LIKE HAVING A GOOD CREDIT SCORE AND A TON OF DEBT.

DOES HILLTOP DO YOU UNDERWRITE THE BOND ISSUANCES OR IS IT LIKE A BEST EFFORTS? WE DO. WE UNDERWRITE AS WELL.

YOU UNDERWRITE IT AND YOU GET A COMMISSION.

OBVIOUSLY EVERY TIME THESE DEBT OBLIGATIONS ARE PLACED OUT OR UNDERWRITTEN.

YES, SIR. BUT IN THIS SITUATION, I'M NOT AN UNDERWRITER.

I CAN'T. I AM AN ADVISOR.

I HELP PUT TOGETHER THIS.

ARE YOU UNDER IS IS HILLTOP ON A GENERAL RETAINER TO PROVIDE FINANCIAL ADVICE GENERALLY TO THE TOWN OF WESTLAKE?

[01:50:01]

YES, SIR. AND THAT'S BEEN RUNNING FOR THREE YEARS.

YES, BUT YOU'RE ALSO RECEIVING COMMISSIONS FOR PLACING THE BONDS, IS WHAT YOU'RE SAYING.

WE DON'T GET AN ANNUAL RETAINER.

WE ONLY ARE PAID ON A PER BOND BASIS WHEN AND IF BONDS ARE EVER ISSUED.

I SORRY, I THOUGHT YOU JUST SAID THERE WAS A RETAINER THAT WAS PAID.

NO, I'M SORRY. WE HAVE A CONTRACT.

WE DO NOT HAVE A RETAINER.

SO IT'S LIKE AN EXCLUSIVE MANDATE.

ANY TIME THE TOWN OF WESTLAKE ISSUES NEW DEBT OBLIGATION THAT HILLTOP GETS TO DO THAT WORK.

IS THAT WHAT YOU'RE SAYING? WELL, WE HOPE WE ARE ABLE TO.

OUR CONTRACT ALLOWS FOR TERMINATION AT ANY TIME WITH 30 DAYS NOTICE.

OKAY, SO AND YOU GOT THIS CONTRACT IN A NON COMPETITIVE NON BID SITUATION THAT YOU STATED EARLIER, CORRECT? YES, SIR. I WAS A REFERRAL.

THE 16 MILLION WRITE THAT ON A UTILITY BOND FOR THAT REFINANCE.

HOW MUCH DID HILLTOP MAKE.

WHAT WAS THE COMMISSION RATE. I DON'T HAVE THAT OFF THE TOP OF MY HEAD.

I CAN TELL YOU OUR TOTAL COST OF ISSUANCE ON THAT TRANSACTION WAS 117,000.

THAT PAYS BOND COUNSEL RATING FEES.

MY FEE, ATTORNEY GENERAL REVIEW FEE.

AND THAT WAS ROLLED INTO THE BOND AGAIN? YES, SIR. 117,000.

AND DID HILLTOP UNDERWRITE? WE'RE NOT ALLOWED TO.

YOU'RE NOT ALLOWED TO UNDERWRITE? NO. IF WE HAVE A FINANCIAL ADVISORY ENGAGEMENT, WE CANNOT SERVE.

SO JUST TO BE CLEAR ON THAT $16 MILLION BOND, YOUR TOTAL COMPENSATION FOR YOUR FIRM WAS 117,000.

THAT'S IT. NOTHING EXTRA.

I WISH I COULD SAY IT WAS HUNDRED AND 70,000.

THAT 117,000 WAS THE TOTAL COST OF ISSUANCE THAT PAID ABOUT FIVE OTHER SERVICE PROVIDERS.

BUT WHEN YOU SAY YOUR FINANCIAL ADVISOR TO THE TOWN, BUT YOU'RE ONLY PAID WHEN YOU ISSUED DEBT, IS THAT WHAT YOU'RE SAYING? THAT'S RIGHT. OKAY.

SO AMBER, SO BUT YOUR GROUP PLACES THE DEBT OBLIGATIONS OUT, RIGHT? SO IT'S LIKE A BEST EFFORTS.

WE SOLD THOSE PAST THREE TRANSACTIONS ON A COMPETITIVE BID.

WE ADVERTISED THEM TO COMPETITIVE BIDS, BROUGHT THE THE BIDS BACK TO THE COUNCIL AND THE LOWEST INTEREST RATE IS WHO WON THAT TRANSACTION.

OK. OK.

ANY MORE QUESTIONS? WHAT ELSE DO YOU HAVE? JUST REFUNDING, REFINANCING EXISTING DEBT.

YOU KNOW, THIS IS JUST REAL QUICK.

OLD TAX LAW WE USED TO BE ABLE TO DO.

WHILE THIS CALL DATES ARE SO IMPORTANT TO MONITOR CURRENT REFUNDING, WE REFINANCE IT WITH IT WHEN WE'RE 90 DAYS WITHIN THAT CALL DATE.

SO SOME OF THOSE BONDS THAT ARE CALLABLE IN FEBRUARY 15, 2023 ARE APPROACHING THAT WINDOW.

UNFORTUNATELY, NONE OF THEM MAKE SENSE AT THIS TIME JUST BECAUSE SHORT TERM INTEREST RATES HAVE RISEN SO MUCH.

ADVANCE REFUNDING WE USED TO BE ABLE TO DO THAT IS WE WOULD REFUND REFINANCE SOMETHING WELL IN ADVANCE OF THE CALL DATE BUT THAT WAS REPEALED UNDER THE TAX REFORM IS IS IS HEALTHHUBS.

OBVIOUSLY I HAVE NOT SEEN THE CONTRACT BUT ARE YOU YOUR GROUP IS SUPPOSED TO PROVIDE ADVICE GENERALLY IN TERMS OF REFINANCING AND GENERAL.

YES. OKAY.

BUT YOU DON'T GET PAID FOR THAT UNLESS YOU ISSUE DEBT.

SO THE HISTORY THERE IS WE'VE BEEN IN BUSINESS SINCE 1946 AND I'VE BEEN WITH THE FIRM FOR ABOUT 21 YEARS AND WE WORK WITH SMALLER CITIES AND THAT CAN'T AFFORD A RETAINER AT TIMES.

AND SO WE SAID, DON'T WORRY ABOUT IT, BUT BRING US IN BECAUSE WE DON'T WANT TO HAVE TO TRY TO UNDO A MESS IF WE COME IN TOO LATE.

AND SO THAT'S WHY THAT'S JUST THE STRUCTURE AND NATURE OF OUR BUSINESS.

SO WE MAY DO BOND ELECTION WORK AND THE BOND ELECTION FAILS AND THAT THERE'S NO NO PAYMENT.

IS IT AN EXCLUSIVE CONTRACT? I MEAN, COULD THEORETICALLY WE PUT THE NEXT BOND ISSUE OUT TO BID WITH OTHER.

ABSOLUTELY. YEAH, BUT WE'D HAVE TO TERMINATE YOU FIRST.

CORRECT. IT'D PROBABLY BE CLEANER IF YOU DID.

THERE'S NOTHING THAT'S IN THE REGULATIONS THAT SAYS THAT YOU CAN'T HAVE MORE THAN ONE FINANCIAL ADVISOR.

BUT IF YOU'RE. I'M JUST TRYING TO THINK LIKE.

SO IF YOU'RE THE FINANCIAL ADVISOR AND YOU'RE GIVING ADVICE IN TERMS OF REFINANCING OR ISSUING DEBT, YOU'RE ADVISING THE TOWN TO GO WITH YOUR GROUP TO ISSUE SET DEBT. SO, I MEAN, IS THERE NOT AN INHERENT CONFLICT THERE? SO SO WE DON'T UNDERWRITE IT? NO, NO, NO. I UNDERSTAND YOU'RE GETTING PAID A COMMISSION FOR FOR PLACING IT.

SO IF YOU'RE THE GENERAL FINANCIAL ADVISOR WITH THE TOWN OF WESTLAKE AND YOU SAY, HEY, I THINK YOU SHOULD REFINANCE THIS DEBT IN THIS WAY, BUT I THINK YOU SHOULD USE OUR FIRM TO DO IT. THAT'S KIND OF WHAT I'M GETTING AT.

IT'S NOT IMPARTIAL ADVICE UP UNTIL THAT POINT.

MAYBE I SHOULD GET A COPY OF THE CONTRACT FOR YOU TO READ.

[01:55:02]

RIGHT. BUT YOU SAID TO ALSO PROVIDE GENERAL FINANCIAL ADVICE.

LIKE, FOR EXAMPLE, THIS PRESENTATION TOOK TIME AND EFFORT TO PUT TOGETHER.

IT'S A SNAPSHOT OF OUR OUTSTANDING DEBT PROFILE.

BUT YOU'RE NOT REMUNERATED FOR THIS.

SO YOU'RE PROVIDING SORT OF GENERAL FINANCIAL SERVICES TO THE TOWN WITH THE VIEW THAT IF WE GET TO A POINT WE WANT TO REFINANCE OR ISSUE NEW DEBT, THAT WE WOULD LOOK FAVORABLY UPON YOUR GROUP TO DO THAT WORK? YES, I WOULD HOPE SO.

BUT YOU DO GO OUT TO GET COMPETITIVE BIDS.

BUT THAT'S ONLY FOR THE INVESTORS.

YEAH, NO, I'M JUST ASKING. YEAH, I'M JUST CLARIFYING.

SO IS IT THAT YOUR COMPANY ISSUES THOSE OR IS IT YOU GO OUT TO THE ARENA, THERE'S VARIOUS PLATFORMS THAT ARE USED BY THE MUNICIPAL SECURITIES INDUSTRY AND SO IT ADVERTISES COMPETITIVE BIDS OUT AND WE PUT FORTH AND ANYBODY CAN COME IN ANY FINANCIAL INSTITUTION THAT CAN PROVIDE A GOOD FAITH CHECK, WHICH IS TYPICALLY 2% OF THE OF THE PAR AMOUNT OF THE TRANSACTION.

SO WE HAVE TO HAVE A GOOD FAITH CHECK.

AND BUT YES, AND THE LAST DEBT THAT WE REFINANCED THROUGH YOU, WE GOT THE INTEREST RATE DOWN FROM 6.75% TO 2.0 I'M SORRY, SOMETHING 273 WAS THAT AVERAGE INTEREST COST.

SO THAT SAVED A TON OF MONEY TO THE TOWN.

IT'S ALSO INTEREST RATES WERE LOW FOR EVERYONE AND I THINK YOU'D AGREE TRIPLE-A RATED, IT'S LIKE A DAY OFF.

IT'S LIKE SOMEONE HAVING A 900 BEACON SCORE AND GOING TO TRY TO GET A MORTGAGE PRETTY EASY, RIGHT? I MEAN, IT HELPS IN THE MARKET.

YEAH, ABSOLUTELY.

AND THEN I JUST HAD ONE SLIDE ABOUT THE SALON OF PID.

THOSE WERE SOLD IN 2015, SECURED AND PAYABLE ONLY BY SPECIAL ASSESSMENTS LEVIED ON THAT PROPERTY WITHIN THE PID.

PROCEEDS OF THAT TRANSACTION ARE HELD WITH A THIRD PARTY TRUSTEE US BANK, AND THEN MONEY IS RELINQUISHED OUT OF THAT TRUST ACCOUNT AS THOSE IMPROVEMENTS ARE CONSTRUCTED AND APPROVED BY THE TOWN.

SO AS OF SEPTEMBER 30TH, 2022, 23.8 MILLION WAS OUTSTANDING COUPON RATE RANGE OF 552 6.375% CALLED 891 2025.

SO YOU WOULD THINK THAT AS THAT PID DEVELOPS, YOU HAVE A DIVERSIFIED USER BASE, THE CREDIT WILL CONTINUE TO IMPROVE.

SO MY GUESS THAT WOULD BE A REFINANCING OPPORTUNITY WHEN THAT TIME COMES IN 2025.

BUT THAT'S IS TRULY OFF BALANCE FOR THE TOWN, THOUGH, RIGHT? THAT IS CORRECT. YES, SIR.

AND THAT'S NONRECOURSE DEBT, RIGHT? THAT'S CORRECT. SO JUST FOR CLARITY, FOR FOR PUBLIC ASSESSMENT, THAT IS NOT PART OF THE TOTAL OF THE DEBT THAT YOU SHOWED EARLIER.

THAT'S TRUE. BUT WE'RE NOT LIABLE FOR.

CORRECT. WE'RE NOT LIABLE FOR IT.

AND IF YOU DEFAULT ON THAT MONEY, IS THAT THE DEFAULT IS JUST ONE YEAR'S INTEREST, RIGHT? YES. SO THAT'S RIGHT.

SO THE TOWN COVENANTS THAT YOU WILL FORECLOSE IN THE EVENT OF A NON PAYMENT OF THE ASSESSMENT, BUT MOST LIKELY, IF THEY'RE NOT PAYING THEIR ASSESSMENT, THEY'RE ALSO NOT PAYING THEIR PROPERTY TAXES.

BUT YOU'RE RIGHT, WHAT'S DUE IS THAT INITIAL YEARS AND THEN THE BAD DEBT RESERVE AND THEN THERE'S A $3 MILLION BID DEBT RESERVE. OH, YES.

DEBT SERVICE RESERVE FUND HELPS TO.

WHEN YOU TALK ABOUT REFINANCING, I MEAN, I GUESS THE ONLY REASON YOU WOULD REFINANCE IS TO WHAT HELP PROMOTE THE DEVELOPMENT.

YOU WOULD YOU COULD REFINANCE IT TO LOWER THE ASSESSMENTS TO THOSE PAYERS WITHIN THAT BID.

SO IT'S A FAVOR TO THEM TO HELP THE DEVELOPMENT PROCESS.

WELL, ITS RESIDENTS WOULD BE SEEING THAT BENEFIT BECAUSE IT'S THE RESIDENTS ARE PAYING THOSE RESIDENTS.

RIGHT. BUT THEY'RE LOCKED INTO IT, KNOW WITHIN IT LIKE EACH PERSON, IF YOU OWN A TOWNHOUSE IT'S LIKE 30,000.

YOU CAN CHOOSE TO PAY THAT OFF INDIVIDUALLY.

CORRECT? YES, SIR.

AND SO THERE'S A UNIQUE FEATURE TO IT YOU CAN PAY OUT, BUT YOU'RE STILL IN THE PID, SO THE PID COULD REASSESS YOU IN THE FUTURE RIGHT NOW.

RIGHT. SO THE REFINANCING IS FAVORABLE TO THE RESIDENTS AND TO HELP PROMOTE FUTURE DEVELOPMENT BY LOWERING THE OBLIGATION.

OKAY. THAT'S ALL I HAD FOR YOU ALL.

THANK YOU FOR THANK YOU VERY MUCH FOR COMING IN.

THANK YOU SO MUCH.

TAKE A QUICK FIVE MINUTE BREAK HERE AND THEN WE'LL REGROUP AND CLOSE OUT.

LET'S GET BACK INTO YOUR SESSION HERE.

ITEM NUMBER 11.

CONSIDER THE APPROVING RESOLUTION 22-64.

PERUVIAN TRY TO ASSIGNMENT OF RIGHTS, COVENANTS AND OBLIGATIONS OF THE ECONOMIC PROGRAM AGREEMENT AND DEVELOPMENT AND SUBDIVISION IMPROVEMENT AGREEMENT FROM MAGUIRE PARTNERS, LAND L.P.

TO MWR INVESTORS LLC AUTHORIZING THE MAYOR TO APPROVE THE ASSIGNMENT ON BEHALF OF THE TOWN AND TAKE APPROPRIATE ACTION.

[02:00:08]

GOOD EVENING. MICHAEL BEATTY.

I DON'T HAVE A PRESENTATION PREPARED OR ANYTHING, I GUESS JUST TO ANSWER ANY QUESTIONS WE HAVE REGARDING THE ASSIGNMENT.

YOU TURN IN A BUNCH OF STUFF TO US.

FOR THE PAPERWORK.

RON, DID WE GET EVERYTHING FOR THE LLC AND ALL THE OTHER DOCUMENTS THAT WERE OBLIGATED FROM THE LAST MEETING?

[11. Consider approving Resolution 22-64 approving the Entrada assignment of rights, covenants and obligations of the economic development program agreement and a development and subdivision improvement agreement, from Maguire Partners – Solana Land, L.P. to MRW Investors, LLC, and authorizing the Mayor to approve the assignment on behalf of the Town; and take appropriate action (This item is continued from the September 26, 2022 Town Council meeting)]

IT'S FROM THE COMPANY IN LA.

YES, SIR. AND IT'S AN LLC, RIGHT? THEY PUT MONEY INTO AN LLC AND THEY GIVE IT TO YOU AS A FINANCING ARM.

YES, SIR. AND SO DID EVERYONE READ THROUGH THE ITEMS ON THE SAME QUESTIONS? YEAH. SO I THINK SO.

I THINK WHEN WE LAST SPOKE, ONE OF THE OUTSTANDING ISSUES WAS WE WANTED TO HAVE AN UNDERSTANDING, A BETTER UNDERSTANDING OF THE FINANCING AVAILABLE TO COMPLETE THE PROJECT.

I UNDERSTAND YOU BROUGHT SOME MATERIALS HERE, A LETTER FROM THE LENDER, AND OBVIOUSLY IT'S HARD FOR US TO VERIFY THE LENDER, ESPECIALLY AT SHORT NOTICE LIKE THIS. AND EVEN IF WE CAN, NOTHING'S AUDITED.

AS YOU KNOW, WE DON'T HAVE COPIES OF BANK STATEMENT.

SO A LOT OF IT IS JUST GOOD FAITH UNDERSTANDING OF THE FINANCES.

SO I KNOW WE WANT TO GET THIS ASSIGNMENT APPROVED SO YOU CAN FORMALLY TAKE OVER THE RESPONSIBILITIES OF THE ENTRADA DEVELOPMENT.

I THINK THE ONE ISSUE I HAVE WITH THE ASSIGNMENT THAT THE MAYOR IS BEING REQUESTED TO EXECUTE IS UNDER THE RECITALS PART F, WHERE IT CURRENTLY SAYS THAT THE TOWN COUNCIL OF THE TOWN FINDS THAT THE ISD IS FINANCIALLY CAPABLE OF MEETING THE TERMS AND CONDITIONS OF THE DEVELOPMENT AGREEMENTS.

I PERSONALLY DON'T FEEL LIKE WE'RE IN A POSITION TO MAKE THAT CONFIRMATION.

SO WHAT I WOULD PROPOSE IS MAKING A MOTION TO APPROVE THE ASSIGNMENT ON THE CONDITION THAT WE CHANGE THAT RECITAL AND PUT IN THERE THAT THE ASSIGN OR AND ASSIGNEE HEREBY CONFIRM THAT THE ASSIGNEE IS FINANCIALLY CAPABLE.

YES, SIR. OKAY.

ALL RIGHT. ANY OTHER QUESTIONS? CHANDRIKA KIM.

ALL RIGHT. LET'S GO.

LET'S APPROVE THIS HERE.

CAN I GET A MOTION TO APPROVE RESOLUTION 22 TO 64 PENDING THE SITUATION OF PARAGRAPH F RECITAL? READING THE DESIGNER AND SIGNY HEREBY CONFIRM THAT THEY ARE FINANCIALLY CAPABLE.

CAN I ADD? FIRST I WILL MAKE A MOTION.

A SECOND. O SECOND.

ALL IN FAVOR. AYE.

I'M GOING TO ABSTAIN.

I FULLY UNDERSTAND.

SO THANK YOU. ALL OPPOSE.

WE HAVE ONE MOTION CARRIES.

20 TO 64 CARRIES.

THANK YOU. THANKS, OK.

ITEM 13 COUNCIL RECAP.

STAFF DIRECTOR. MAYOR.

WHAT I HAVE IS COUNCILMEMBER RACE.

ASKED ABOUT RESPONSE TIMES.

THE KIND OF THE THRESHOLDS THOSE MAXIMUM MINIMUM TIMES.

CHIEF FORTUNE INDICATED THAT HE WOULD BE ABLE TO PROVIDE THOSE.

I THINK YOU CAN EMAIL THAT.

WE DON'T WAIT WE CAN EMAIL THIS INFORMATION IS JUST FOLLOW UP.

WE HAD THE THAT DEBT STACKING BAR CHART THAT COULD BE THAT NICK INDICATED THAT HE WOULD UPDATE TO INCLUDE THE HILLWOOD DEBT SINCE 2003.

THAT'S AS FAR AS HIS BAR CHART WENT AND THEN SENDING THE HILLTOP CONTRACT TO COUNCIL.

YES SO ALL THESE THINGS WE CAN WE CAN DO BY EMAIL.

BY EMAIL, YEAH. OKAY, PERFECT.

[13. COUNCIL RECAP/STAFF DIRECTION.]

WE DON'T DO WE NEED TO HAVE THE MATH SPECIALIST CONVERSATION COME BACK UP AGAIN? I THINK NO, BECAUSE I THINK THE WAY IT WAS LEFT WAS THAT THAT MR. HARDING WAS DUE TO SEND AN EMAIL OF SPECIFIC REQUESTS WHICH HAD NOT YET BEEN RECEIVED BY US.

AND I THINK MR. WILSON SUGGESTED THAT THESE POSITIONS WERE SUBJECT TO FORMAL REVIEW AT THE SCHOOL.

AND SO I BELIEVE THEY'RE GOING TO COME BACK TO US WHEN THEY'RE READY.

OKAY. SO WE CAN CROSS THAT OFF NOW AND THEN THAT'S IT FOR NOW ON THE FUTURE AGENDA

[02:05:06]

WE'VE GOT TBD ON THERE FOR A DATE UNCERTAIN.

IS THERE ANY REASON TO KEEP THIS AS A DATE UNCERTAIN, OR DOES COUNCIL WISH TO?

[14. FUTURE AGENDA ITEMS]

I DON'T SEE A NEED TO HAVE A FORMAL THING, SO..

I THINK WE CAN TAKE THAT OFF.

YEAH, I AGREE. I THINK WE'RE SELF REGULATING PRETTY WELL BY SECONDED WHERE WE WANT SOMETHING APPROVED.

I MEAN, IT WAS HANDLED LAST JANUARY THROUGH A VOTE, SO I THINK IT'S PRETTY GOOD.

YEAH, I THINK WE WERE TALKING ABOUT THAT.

GOOD CATCH TROY. AND THAT'S THE ALL THE THINGS IN MY ITEMS HERE.

I MISS ANYTHING. ALL RIGHT.

I APPRECIATE IT. [INAUDIBLE] ANYTHING ELSE? NO, SIR. THAT WAS IT. ALL RIGHT.

LET'S GO FOR ADJOURNMENT.

THANK YOU VERY MUCH. THANKS FOR COMING OUT.

8:03, CLOSED OUT.

* This transcript was compiled from uncorrected Closed Captioning.