Mar 24, 2026 Town Council

WE GOT A RICHARDSON OFFICER, ACTUALLY 16 YEARS, PORTLAND, OREGON.

HE GOT WITH US.

WE GOT A ULIS OFFICER.

AND THEN WE ACTUALLY HAVE ONE THAT LEFT US TO GO TO FORT WORTH AND THEN FOUND IT WASN'T GREENER ON THE OTHER SIDE AND CAME BACK TO US.

THAT'S ALWAYS GOOD.

THAT'S A GOOD STATEMENT.

YEAH, SO LIFE IS GOOD THERE.

BUT WE ARE FULL, SIR.

DEMOGRAPHICS HERE SHOWS THE SERVICE BASED ON CITY DATA WHAT THE DEMOGRAPHIC BREAKDOWN IS IN WESTLAKE COMPARED TO THE BREAKDOWN OF OUR DEPARTMENT BETWEEN MALE AND FEMALE OFFICERS AS WELL AS DIFFERENT RACES.

AGAIN, THESE ARE A LOT OF STATS HERE I'M GOING TO PROVIDE TO YOU AND THOSE LOOKING ONLINE, JUST SOME OVERALL NUMBERS OF HOW MANY CALLS FOR SERVICE, DISPATCH, HOW MANY INMATES WE WENT TO THE JAIL, ANIMAL CONTROL CALLS, OPEN RECORDS REQUESTS, ET CETERA.

AND AS YOU WELL KNOW, WE HAVE 100% FUNDED BY WESTLAKE SRO. I THINK THAT HAS BEEN A HUGE SUCCESS.

SO ONE THING I WANT TO HIGHLIGHT IS THAT NOT ONLY ARE WE A STATE-ACCREDITED AGENCY THROUGH THE TEXAS POLICE CHIEFS ASSOCIATION, WE ARE ALSO A NATIONAL ACCREDITED AGENCY THROUGH CALEA.

I SAY THAT BECAUSE THIS WEEK, CALEA IS IN OUR BUILDING DOING EVERY FOUR-YEAR ON-SITE ASSESSMENT, AND WE ARE DOING A VERY, VERY GOOD JOB OF THAT.

WE'VE BEEN WITH THEM SEVERAL TIMES, BUT THAT'S SOMETHING THAT WE WERE ONE OF THE FIRST AGENCIES IN THE STATE OF TEXAS TO BE BOTH NATIONALLY AND STATE ACCREDITED.

THAT'S A BIG DEAL.

SO I JUST WANTED TO HIGHLIGHT THAT.

ANOTHER THING IS REGIONAL PARTNERSHIPS.

WE'VE ALREADY TALKED ABOUT THE REGIONAL NETCOM.

PARTNERSHIP, BUT WE ALSO, WITH NETCOM, WE ARE A PART OF A RADIO CONSORTIUM CALLED NETCO.

YOU SEE THAT'S WITH BEDFORD, EULESS, GRAPEVINE, COLLEYVILLE, SOUTHLAKE.

THAT'S A REGIONAL INTEROPERABLE RADIO SYSTEM THROUGH COG THAT GIVES US REDUNDANCY AND ROBUST BACKUP EFFORTS.

AND THE BEST PART IS WESTLAKE IS UNDER THE UMBRELLA OF KELLER IN THERE, SO WE ARE ONLY PAYING ONE-SIXTH OF THAT TOTAL COST FOR THAT HUGE RADIO SYSTEM, WHICH IS A BIG, BIG DEAL.

WE HAVE THE COMBINED GEL SERVICES.

WE HAVE NORTH TARRANT REGIONAL SWAT TEAM, REGIONAL CRASH TEAM, ANIMAL CONTROL, AND OBVIOUSLY FULL POLICE SERVICES FOR THE TOWN OF WEST.

WE HAVE ALREADY PROVIDED YOU GUYS WITH A RACIAL PROFILING REPORT, AND THIS SLIDE IS A LOT OF WORDS, BUT THAT'S JUST DIRECTLY FROM THE REPORT.

IT SHOWS THE SUMMARY OF OUR SUCCESS THERE.

WE WERE FULLY IN COMPLIANCE.

JUST A REAL RECAP FOR PEOPLE THAT WEREN'T AWARE, WE STARTED OUR RELATIONSHIP BACK IN JUNE OF 2002.

THIS IS OUR FOURTH RENEWAL THAT WE ARE CURRENTLY IN THAT EXPIRES IN 2028.

RIGHT NOW, OUR GENERAL FUND FOR THE POLICE DEPARTMENT, OUR OPERATING BUDGET IS $13.1 MILLION.

THE CURRENT POLICE SERVICES AGREEMENT WITH WESTLAKE IS $1.3 MILLION, WITH 15,900 CALLS FOR SERVICE.

THE COST PER CALL FOR SERVICE WAS $82.72, COMPARED TO THE CITY OF KELLER IS $125.92.

SO ONE THING I WANT TO MAKE SURE THAT EVERYONE REALIZES IS THAT WE ALSO HAVE A CRIME CONTROL AND PREVENTION DISTRICT IN KELLER.

THAT'S A QUARTER CENT OF EVERY SALES TAX THAT'S PAID FOR IN THE CITY OF KELLER GOES STRAIGHT TO THIS FUND.

SO THROUGH THAT FUND, WE SPENT THIS AMOUNT OF MONEY FOR EACH OF THESE TOPICS, AND I'VE LISTED THIS LAST BUDGET YEAR THE DIFFERENT ITEMS THAT WE HAVE PURCHASED USING THESE FUNDS.

THAT COMES NOTHING OUT OF THE OPERATING BUDGET THAT Y'ALL'S SERVICE AGREEMENT COMES OUT OF.

THAT TOTAL WAS $2.2 MILLION.

THE WESTLAKE COST SHARE FOR THOSE, Y'ALL PAY A PORTION OF THE ACCREDITATION MANAGER.

YOU PAY A...

PORTION OF VEHICLES AS WELL AS THE DEBT FOR OUR CAPITAL ON THE BUILDING.

SO YOUR TOTAL WAS $81,977 OF THE $2.2 MILLION.

PREPARING FOR THE FUTURE, I'VE ALREADY MENTIONED THE FOUR OVERHIRES THAT WE ALREADY HAVE IN PLACE.

THAT'S NOT COMING.

THAT'S EXISTING.

MYSELF AND DEPUTY CHIEF RYAN COE ATTENDED A COURSE THIS LAST SUMMER ABOUT STAFFING AND WORKLOAD ANALYSIS.

WE ARE IN THE PROCESS OF CREATING THAT TO GET AN UPDATED CURRENT STAFFING ANALYSIS.

I HAVE COMPLETED A DESIGN OF ADDING A SIXTH DISTRICT, WHICH I'M GOING TO SHOW YOU HERE IN A SECOND.

THAT IS A REDESIGN OF ALL OF OUR DISTRICTS, BUT ADDING AND PREPARING FOR THE FUTURE GROWTH OF WESTLAKE SPECIFICALLY.

AND THROUGH THAT, WE'RE ALSO GOING TO BE LOOKING AT REVISING OUR CURRENT CONTRACT TO ACCOUNT FOR MANPOWER STAFFING ADJUSTMENTS TO WHAT'S COMING IN

[00:35:03]

WESTLAKE.

AND THEN FINALLY.

I HAVE A SLIDE ON HERE, A COUPLE SLIDES OF THE VARIOUS COMMUNITY SERVICES THAT WE'VE ALREADY COMMUNICATED WITH THE DIFFERENT HOAS IN WESTLAKE THAT WE PROVIDE TO YOUR CITIZENS.

THIS IS THE SLIDE ON YOUR LEFT IS WHAT WE CURRENTLY ARE AT.

IF YOU LOOK AT THIS, I KNOW IT'S HARD TO SEE A LOT OF THE ROADWAYS, BUT ONE IN FIVE ARE THE ONES THAT COVER WESTLAKE.

WESTLAKE IS THAT NORTHERN PORTION, AND YOU SEE THE SOUTHERN BOUNDARY IS JOHNSON ROAD.

THAT'S A LOT OF TERRITORY, OKAY? AND SO WHICH IS MORE WHY I'M SO IMPRESSED THAT WE HAVE THE RESPONSE TIMES WE HAVE, BUT WE CAN BE BETTER.

SO IF YOU LOOK AT THE DESIGN ON THE RIGHT, THAT'S WHAT WE HAVE COME UP WITH.

THE THING I LIKE ABOUT THIS IS DISTRICT 6 IS 100% IN WESTLAKE.

THE OTHER BENEFIT OF THAT IS DISTRICT 5, THE NORTHERN BORDER OF DISTRICT 5 ON THE NORTHEAST, IS THE SOUTHERN BORDER OF WESTLAKE.

IT BORDERS WESTLAKE.

AND THEN DISTRICT 1, THAT SOUTHERN BORDER IS FURTHER NORTH IN WESTLAKE, WHICH MEANS DISTRICT 2 IS STILL WITHIN RESPONSE TIME THAT THE CURRENT DISTRICT 1 AND 5 ARE BARELY AT, IF Y'ALL ARE TRACKING.

SO WE HAVE FOUR DIFFERENT OFFICERS THAT HAVE A BETTER, THAT ARE NOW MORE ACCOUNTABLE TO WESTLAKE THAN WHAT WE CURRENTLY HAVE.

AND THAT'S WHAT WE ARE LOOKING AT WITH THE DIFFERENT STAFFING INCREASES, WITH THE GROWTH OF WESTLAKE.

THAT'S WHAT WE'RE LOOKING AT GOING FORWARD.

AGAIN, THIS IS A FLYER THAT'S BEEN GOING AROUND.

WE'VE HAD SEVERAL SUCCESSES, WOMEN'S SELF-DEFENSE COURSES IN KELLER AT OUR KELLER POINT, AND NOW WE'RE GLAD TO BE ABLE TO EXPAND THAT WITH THE PARTNERSHIP OF LIFETIME FITNESS HERE IN WESTLAKE.

THANK YOU ALL FOR DOING THAT.

YEAH, HE MENTIONED THAT TO ME THE OTHER NIGHT I RAN INTO HIM, BUT I'M SO GLAD YOU'RE DOING THAT.

JOHN HALPERN OF THE RUNS LIFETIME IS A GREAT GUY, BUT AGAIN, JUST SENSE OF COMMUNITY.

YEP, WE'RE TRYING TO EXPAND TO THAT POINT.

AND THESE SLIDES ARE SIMPLY TOPICS AND DISCUSSIONS OF COURSES THAT WE PROVIDE, INFORMATIONAL CONVERSATIONS THAT WE CAN COME OUT TO THE HOAS, DIFFERENT BUSINESSES, AND WHETHER IT'S OUR COMMUNITY SERVICES OFFICER OR VARIOUS DETECTIVES, WHOEVER THE SUBJECT MATTER EXPERT IS IN THESE PARTS, WE CAN BRING THEM OUT TO COME AND TALK ABOUT THESE, OR JUST GENERAL Q&A SESSIONS, GENERAL TOPICS THAT THEY HAVE CONCERNS ABOUT FOR THEIR COMMUNITIES.

WE CAN COME OUT THERE AND HAVE THOSE DISCUSSIONS.

BUT LIKE I SAID, WE'VE ALREADY REACHED OUT TO ALL THE HOAS IN WESTLAKE, AND WE'RE JUST WORKING ON SCHEDULING THAT.

THERE WE GO.

THAT'S A PERSONAL RECORD.

WOW.

CHIEF, WE'VE GOT THE WORLD CUP COMING UP.

WHAT INVOLVEMENT DO YOU GUYS HAVE? ARE YOU PLAYING BACKUP IF SOMETHING HAPPENS? SO WE'RE NOT OFFICIALLY A PART OF THAT.

SO, NO, WE ARE NOT OFFICIALLY A BACKUP OF ANYTHING.

WE HAVE BEEN.

GOING TO THE VARIOUS INFORMATIONAL MEETINGS WITH THE FBI, DHS.

WE'RE CONTINUOUSLY BEING UPDATED.

IT IS A VERY SLOW-PLANNED EVENT.

YES, I HEAR.

YEAH, IT'S VERY DIFFERENT THAN IF YOU REMEMBER THE SUPER BOWL A WHILE BACK, DIFFERENT PLANNING.

BUT WE ARE AWARE OF WHAT'S GOING ON.

WE KNOW WHERE THE DIFFERENT PLANNING SITES ARE.

WHEN THEY MAKE THE FINAL ADDITION OF THESE FINAL SIX TEAMS TO ENTER THE CUP, WE'LL THEN BE ABLE TO DETERMINE IF THEY ARE GOING TO BE ABLE TO DO IT.

BECAUSE THEY HAVE CERTAIN IDENTIFIED SITES WHERE THEIR CAMP WOULD BE, THEY HAVE TO THEN SELECT THAT CAMP.

SO WE KNOW WHERE POSSIBLE CAMPS ARE IF THEY'RE SELECTED.

THEY DON'T HAVE TO PICK ANY OF THEM.

SO IT ALL DEPENDS ON WHO MAKES IT AND WHERE THEY GO.

BUT FOR THE MAJORITY OF IT, WE'RE NOT GOING TO BE IMPACTED OTHER THAN, OBVIOUSLY, THE TRAFFIC.

NOW, THERE IS ONE PLANNED SITE BY TEXAS MOTOR SPEEDWAY IF THAT'S SELECTED, BUT IT HASN'T AS OF YET.

SO AS OF RIGHT NOW, WE ARE INFORMED, WE'RE READY, WE'RE PREPARED TO PROVIDE RESOURCES IF NEEDED.

OTHERWISE, WE'RE HOLDING.

CHIEF, QUICK FOLLOW-UP QUESTION ON THAT.

ARE WE EXPECTING RESIDENTS TO BE RENTING OUT THEIR HOUSES, THEIR APARTMENTS, ETC.? ARE WE EXPECTING A LOT OF...

WHAT'S THE PLAN, OR IS THERE ANY EXPECTATION THAT WE'RE GOING TO HAVE A LOT OF FOLKS FROM OUT OF TOWN WHO ARE GOING TO BE STAYING IN OUR TOWNS BECAUSE PEOPLE ARE GOING TO TRY AND, I MEAN, UNDERSTANDABLY MAKE...

IT'S GOING TO HAPPEN.

THERE HASN'T BEEN ANY ESTIMATE OF NUMBERS PER JURISDICTION OR ANYTHING.

WE JUST KNOW IT'S GOING TO BE AN INCREASE, AND IT'S A WAIT-AND-SEE.

AGAIN, THIS...

THERE'S A LOT OF HOA RULES THAT PREVENT SHORT-TERM...

AND TJ, THERE'S A COUPLE OF GOVERNMENT THINGS THAT I JUST HAVEN'T BEEN ON YET THAT THEY'RE TALKING ABOUT ALL THIS, BUT I THINK TO THE CHIEFS IT'S A LITTLE EARLY.

IT'S COMING UP, BUT THEY'RE SLOW PLANNING.

AND IT'S LIKE THEY'RE CRAMMING FOR AN EXAM AT THE VERY LAST MINUTE.

I HATE TO SAY IT.

CHIEF, THOSE SLIDES WERE GREAT.

DON'T REMEMBER THEM BEING DISTRIBUTED.

GET THE REPORTS.

WERE THE SLIDES IN THERE? THOSE? THEY WERE IN THERE? OKAY.

IF YOU DON'T GET THEM, SIR.

I CAN HAND THEM TO YOU.

CHIEF, ONE THING WE'VE NEVER REALLY TALKED ABOUT, WHAT IS YOUR PAY ON YOUR OFFICERS? HOW DO YOU HOW DOES YOUR I MEAN, I KNOW YOU HAD SOME ATTRITION ISSUES.

YOU KNOW, THERE'S BEEN A LOT OF LAST YEAR WAS A CHALLENGE

[00:40:04]

FOR US STAFFING-WISE, AND THAT HAPPENS WITH ANY BUSINESS.

YOU KNOW, SOME EMPLOYEES ARE GOING TO DO WHAT THEY'RE GOING TO DO.

BUT I WANT TO GIVE THIS TO YOU REAL QUICK.

LAST YEAR WE HAD ONE OFFICER WHO UNFORTUNATELY COMMITTED SUICIDE.

THEN WE HAD 10 OFFICERS THAT RESIGNED.

BUT IF I WANT TO BREAK DOWN THESE 10, TWO RELOCATED OUT OF THE AREA, OUT OF THE METROPLEX FOR FAMILY OR FRIENDS.

TWO RESIGNED IN LIEU OF TERMINATION FOR NOT SUCCESSFULLY COMPLETING OUR FTO PROGRAM.

TWO RESIGNED DUE TO THE REQUIREMENT OF ROTATING OUT OF A SPECIALIZED POSITION, EVEN THOUGH THEY ENTERED A SPECIALIZED POSITION KNOWING IT WAS A LIMITED TENURE.

THEY DIDN'T WANT TO GET OFF THEIR MOTORCYCLES, SO THEY FOUND SMALLER TOWNS THAT WOULD ALLOW THEM FULL-TIME TO BE MOTORISTS.

AND WE HAVE TOO MANY OFFICERS THAT DESERVE OPPORTUNITIES.

THAT'S WHY THEY COME TO KELLER.

THERE'S DIFFERENT SPECIALIZED POSITIONS.

WE HAVE TO AFFORD THEM THOSE OPPORTUNITIES.

SO I DIDN'T CHANGE THE POLICY.

THEY DIDN'T LIKE IT.

THEY LEFT.

TWO RESIGNED TO JOIN A LARGER AREA IN THE METROPLEX.

ONE RESIGNED TO RETURN TO TEACHING FOR KISD.

HE WAS A TEACHER BEFORE.

HE ACTUALLY GOT AN AWARD HERE BECAUSE HE DID THE CPR OUT ON DOVE ROAD.

OH, YEAH.

GREAT GUY, BUT HE DECIDED HIS HEART WAS WITH TEACHING, SO HE LEFT AND WENT BACK TO KISD.

PHILIP DAVIS.

GOOD FOR HIM.

AND THEN FINALLY ONE RESIGNED IN LIEU OF TERMINATION FOR AN IA INVESTIGATION.

SO THERE'S NEARLY ONE REASON.

THERE'S TWO THAT LEFT TO OTHER AREAS, OTHER AGENCIES IN THE METROPLEX, PAY-RELATED PROBABLY.

ALSO, THERE WERE LARGER AGENCIES THAT OFFERED MORE SPECIALIZED POSITIONS THAT WE JUST CAN'T OFFER.

SO TO YOUR POINT, I JUST HAD A MEETING WITH THE CITY OF KELLER, CITY MANAGER, AND THEY ARE LOOKING AT, FROM A COMPARISON, YOU HAVE VARIOUS BENCHMARK CITIES.

THE MAYOR OF KELLER LIKES TO LOOK AT ALL OF TARRANT COUNTY, NOT JUST SPECIFIC IDENTIFIED BENCHMARKS, BUT THE BIG...

AND THE SMALL OF ALL TARRANT COUNTY.

THAT'S WHAT HE ASKED US TO DO.

FROM THE STARTING PAY CURRENTLY, WE ARE EXACTLY AT MIDPOINT OF THE STARTING PAY FOR ALL AGENCIES IN TARRANT COUNTY.

THAT'S WHERE WE'RE AT.

WE'RE ABOUT 50%.

NOW, I WILL SAY THAT THE LAST THREE YEARS, THEY HAD A CONCERTED EFFORT.

WE HAD A LARGE STEP PLAN, AND THEY HAD MADE A COMMITMENT TO THE ASSOCIATION THAT EVERY YEAR THEY WERE GOING TO REDUCE THE STEPS DOWN TO NINE TOTAL.

WE'VE GOTTEN TO TEN LAST YEAR.

WE HAVE ONE MORE TO GO TO GET TO NINE.

AND THEN SO THREE YEARS AGO AND THEN TWO YEARS AGO, WE GOT A 7.75% RAISE BOTH YEARS.

LAST YEAR WE GOT A 7.75% RAISE FOR LINE LEVEL TO INCREASE THAT, TO ATTRACT THE LINE LEVEL.

SO IT'S ONE OF THOSE THINGS YOU HAVE TO BE SUSTAINABLE, AND YOU HAVE TO FIND THAT BALANCE.

SO THAT'S WHERE WE'RE AT RIGHT NOW.

SO YOU FEEL, IF I'M UNDERSTANDING, YOU FEEL OKAY ABOUT YOUR PAY.

I DON'T KNOW THAT I AGREE WITH YOUR MAYOR AND A GOOD FRIEND ABOUT ALL OF TARRANT COUNTY.

I THINK YOU LOOK A LITTLE...

THERE'S DIFFERENT OPINIONS.

I'M SURE THERE ARE.

YOU MIGHT ASK, IF I ASK, WOULD YOU LOOK LOCALLY, LIKE WITH THE FOUR OR FIVE SURROUNDING TOWNS? YES, SIR.

ANY QUESTIONS? THAT'S WHAT I DO.

ANY QUESTIONS? FOR A REPORT.

THANK YOU, STEVE.

GREAT JOB.

AND I'VE GOT TO TELL YOU, I MEAN, WE'RE A SMALL TOWN, RIGHT? IT'S HARD TO BELIEVE WE'RE IN THIS BIG METROPLEX.

BUT WESTLAKE IS JUST A SMALL COMMUNITY.

WE HAD ATTEMPTED BURGLARY, I THINK IT WAS LAST YEAR.

A FEW GUYS WERE THERE LIKE THAT.

AND I THINK THEY STAYED WITH A HOMEOWNER.

I THINK HER HUSBAND WAS OUT FOR LIKE TWO HOURS JUST TO CALM HER DOWN.

I CAN'T THANK YOU ALL.

AND LET ME JUST SAY THIS ONE LAST THING.

YOU KNOW, WE HAVE AN IN-SERVICE EVERY YEAR WHERE WE BRING ALL OF OUR OFFICERS OVER THE COURSE OF FOUR WEEKS.

WE GIVE THEM THE SAME TRAINING FOR ALL THE STATE AND MANDATED TRAINING REQUIRED.

AND THIS WAS MY OPPORTUNITY TO MAKE SURE THAT EVERYONE DOWN TO THE LINE LEVEL UNDERSTOOD THE GROWTH THAT'S COMING IN WESTLAKE.

AND THE EXCITEMENT THAT THEY ALL FEEL WITH WHAT'S COMING AND THE FACT THAT WE DID HAVE RESIGNATION.

SOMETIMES TURNOVER IS NOT A BAD THING.

NO, I AGREE.

SOMETIMES YOU GET FRESH CULTURE AND THEY SEE THE BENEFIT OF THESE THINGS AND THAT NEW MOTIVATION.

WHAT'S COMING IS A VERY POSITIVE THING.

WE ARE.

WE GOT A LOT OF COOL THINGS COMING OUT.

SOMETHING'S GOING TO BE ANNOUNCED HERE.

AND I DON'T KNOW IF ENOUGH OF THE RESIDENTS SAY IT, BUT, MAN, WE REALLY APPRECIATE YOU GUYS.

EVERY DAY, PUTTING YOUR LIVES ON THE LINE FOR US.

IT MEANS A LOT.

THANK YOU, SIR.

SERIOUSLY.

JUST TELL PEOPLE TO LOCK THEIR CARS AND WE'LL BE GOOD.

THEN I WOULDN'T HAVE A REPORT TO YOU, SIR.

CHIEF, THANK YOU VERY MUCH.

[E.3. Update from the Texas Student Housing Authority (TSHA) (Tracy Harrow, TSHA Executive Director)]

AND NEXT ON THE AGENDA, E3 UPDATE FROM TEXAS STUDENT HOUSING.

TRACY HARROW, TEXAS.

STUDENT HOUSING AUTHORITY.

HEY, HOW ARE YOU? GOOD TO SEE YOU.

IT'S BEEN A WHILE.

THANK YOU FOR HAVING ME.

WELL, I JUST ADVANCED OUR TEXT.

[00:45:01]

A LITTLE BIT OF BACKGROUND.

I WAS APPOINTED TO BE A BOARD MEMBER IN 2013 BY MAYOR WHEAT, AND I SERVED ON THE BOARD FOR TWO YEARS, AND IN 2015...

EXECUTIVE DIRECTOR RESIGNED OVER HIS JOB IN 2015, SO I'VE BEEN 11 YEARS AS EXECUTIVE DIRECTOR.

A LITTLE BIT ABOUT US.

OUR HISTORY GOES BACK TO 1905.

UNDER THE HIGHER EDUCATION, IT ALLOWS FOR TAX EXEMPTION.

WE AT ONE POINT, FACILITIES WERE DOWN, DOWN, JUST TWO LEFT.

CAMBRIDGE HALL IS LOCATED IN THE LOCATION OF THE BRIDGE AT NORTH STATEN.

THESE ARE THE TWO FACILITIES WE ARE OFFERING OUR HELP TO FOR HIGH SCHOOL STUDENTS AND COLLEGE STUDENTS.

THEY TEACH US 900 SCHOLARSHIPS AWARDED SINCE WESTLAKE ACADEMY STUDENTS AT THE VALUE OF $840,000.

THERE WERE SEVERAL THAT WERE AWARDED BEFORE THE YEAR THAT I TOOK OVER AND THE WESTLAKE STUDENTS WE HAVE.

AND THEN THE SCHOLARSHIPS ARE INCREMENTAL.

$2,500 A YEAR IS GENERALLY...

GENERALLY WHAT THEY ARE WORTH.

THAT'S THE RIDGE.

CAMBRIDGE HALL IS A LITTLE BIT HIGHER, ABOUT $3,500. THEY'RE USUALLY AWARDED FOR UP TO FOUR YEARS AS LONG AS YOU'RE A FULL-TIME STUDENT AND YOU KEEP YOUR GPA 3.0 OR GREATER.

EVERY WESTLAKE ACADEMY STUDENT THAT APPLIES FOR A SCHOLARSHIP, THEY GET A FULL HOUSING SCHOLARSHIP.

IF THEY'RE LIVING AT THE RIDGE, THAT SCHOLARSHIP IS AWARDED ABOUT $6,900, SO IT PAYS FOR ALL OF THEIR RENT AT THE RIDGE AND THEN IF THEY STAY AT THAT FALL, IT'S AROUND $9,000.

THAT INCLUDES THEIR MEALS AS WELL.

SO IT'S A FULL RIDE FOR WESTLAKE STUDENTS.

AND CURRENTLY RIGHT NOW I'M STILL ACCEPTING SCHOLARSHIPS FOR THE FALL AND SPRING 27.

THE DEADLINE TO APPLY IS APRIL.

HERE'S THIS PAST YEAR.

THIS IS FALL OF 25, SPRING OF 26.

CAMBRIDGE HALL, I AWARDED 72 SCHOLARSHIPS, AND OF THOSE 72, THREE OF THEM ARE WESTLAKE STUDENTS.

AND THE RIDGE AT NORTH TEXAS, I AWARDED 15 SCHOLARSHIPS.

ONE IS A WESTLAKE STUDENT.

A TOTAL OF 87 THAT WAS AWARDED THIS PAST YEAR, A VALUE OF $302,000.

THAT'S THE VALUE OF THE RENT.

WERE THOSE OTHER KIDS WITHIN WESTLAKE, THEY DIDN'T GO TO THE ACADEMY, OR ARE THEY FROM AROUND SURROUNDING? THEY'RE OTHER AREAS.

OTHER AREAS.

OTHER AREAS THROUGHOUT TEXAS.

WE HAVE A BOARD OF SIX MEMBERS.

WE HAVE AN OPEN POSITION, WHICH I THINK YOU'LL BE VOTING ON THAT TONIGHT.

WE HAVE A NOMINEE BEING CONSIDERED.

MANY OF YOU KNOW SCOTT BRADLEY.

HE HAS BEEN OUR PRESIDENT EVER SINCE I'VE BEEN EXECUTIVE DIRECTOR.

AND THERE'S THE OTHER NAMES OF THE OTHER BOARD MEMBERS.

AND THEY'VE BEEN WITH ME FOR TWO OR THREE, FOUR OR FIVE YEARS.

HERE'S A PICTURE OF CAMBRIDGE HALL AT COLLEGE STATION.

198 UNITS, 500 BEDS ARE THERE.

IT WAS COMPLETELY RENOVATED IN 24.

IT'S ACTUALLY A GATED COMMUNITY.

IT INCLUDES TWO POOLS, A MOVIE THEATER, DINING HALL, FITNESS, YOGA, STUDY LOUNGE, AND GAME ROOM.

FULLY FURNISHED DORM ROOM, STATE-OF-THE-ART FOR THE STUDENTS.

THERE'S THE WEBSITE THERE.

NEXT SLIDE'S GOT SOME OF THE PHOTOS OF ALL THE RENOVATIONS THAT WERE DONE.

IT'S REALLY, REALLY NICE.

AND THAT'S THE CAFETERIA ON THE TOP LEFT.

IT'S GOT ITS OWN CAFETERIA THERE, SO THE STUDENTS THAT LIVE THERE HAVE A MEAL PLAN.

LOOKS JUST LIKE OUR DORMS, DOESN'T IT? THIS IS THE RIDGE AT NORTH TEXAS.

THIS IS OUR FACILITY IN DENTON.

IT'S 288 UNITS, 876 BEDS.

OCCUPANCY RIGHT NOW STANDS AT 95%.

WE'RE STILL EXPLORING REFINANCING THE SENIOR DEBT, RENOVATE THE REMAINDER OF THE PROPERTY.

THE PROPERTY IS SIX YEARS OLD, SO IT DOES NEED SOME TLC.

WE HAVE A NEWLY CONSTRUCTED CONCRETE.

WALL THAT RUNS ALONG I-35.

I DON'T KNOW IF YOU RECALL THAT TXDOT TOOK TWO OF OUR PARCELS FROM THE EMINENT DOMAIN FOR THE I-35 EXPANSION.

WE JUST HAD THAT WALL LAST WEEK.

ALL THE UNITS ARE FULLY FURNISHED AND WE'RE ON THE UNT SHUTTLE ROUTE.

THE SHUTTLE BUS IS RIGHT OUT FRONT.

AN UPGRADED FITNESS CENTER, A RESORT-STYLE POOL, HOT TUB.

THERE'S THE WEBSITE THERE FOR THE BRIDGE.

PHOTO OF THE NEW FITNESS CENTER ON THE UPPER LEFT, AND THEN DOWN THE BOTTOM ARE THE NEW UNITS THAT HAVE BEEN RENOVATED.

WE RENOVATED BUILDING 13 AND BUILDING 6, BUT WE STILL HAVE 16 MORE BUILDINGS TO GO.

AND WE'LL LOOK AT POSSIBLY REFINANCING THAT DEBT.

[00:50:01]

I THINK A LOT WILL DEPEND ON WHAT HAPPENS WITH THE FED CHAIR.

SO IF INTEREST RATES COME DOWN, IT'LL PROBABLY BE A GOOD TIME FOR US TO REFINANCE THE BONDS.

ANY QUESTIONS? I'VE SAID THIS BEFORE.

THIS IS LIKE A KNOWN JEWEL.

AND I ALWAYS WORRY ABOUT, I MEAN, I ASKED KELLY LAST YEAR, I WENT TO THE YEARS ALL RUN TOGETHER, BUT I THINK IT WAS LAST YEAR I CAME TO ONE OF YOUR BOARD MEMBERS AND MEETINGS AND I JUST LIKE, DO OUR KIDS KNOW ABOUT IT? DO WE ADVERTISE ENOUGH? I THINK I WROTE AN ARTICLE IN STROLL MAGAZINE TALKING ABOUT EVERYTHING THAT YOU'VE DONE FOR OUR KIDS.

IT'S FANTASTIC.

IT REALLY IS.

YOU THAT'S ONE THING I WORRY ABOUT, IS IT KNOWN? BUT I DO KNOW THROUGH THE RELATIONSHIPS I HAVE WITH SOME OF THE KIDS THAT THEY'VE USED IT, ESPECIALLY AT TEXAS A&M.

AND IT'S A GREAT DEAL.

I THINK YOUR SENIOR COUNSEL HAS BEEN VERY PROACTIVE ON THAT.

GOOD.

THAT'S GREAT TO HEAR.

ANY OTHER QUESTIONS, COMMENTS? OKAY.

THE NEXT, BOARDS AND COMMISSIONS, NEXT IS CONSIDERING AN APPOINTMENT OF MS. CATHERINE KIER.

THANK YOU ALL.

[F.1. Discuss, consider and act to approve Resolution 26-05 appointing a member to the Texas Student Housing Authority Board of Directors to fill a current vacancy thru the term ending June 2026.]

THANKS FOR BEING HERE.

GOOD SEEING YOU.

AM I SAYING THAT RIGHT? HERE TO VACANCY ON THE TEXAS STUDENT HOUSING AUTHORITY BOARD.

MS. KIER, ARE YOU PRESENT? HI.

HOW ARE YOU? PLEASE COME FORWARD AND INTRODUCE YOURSELF, AND WE'LL SEE IF THE TOWN HAS ANY QUESTIONS.

ARE YOU LOCAL? OH, PERFECT.

SO I'M CATHERINE KERR, AND I LIVE IN GRAPEVINE, TEXAS, AND I'M LOOKING TO JUST GET MORE INVOLVED IN MY COMMUNITY AND THOUGHT THIS WOULD BE A GREAT OPPORTUNITY SINCE I HAVE SUCH A PASSION FOR HELPING YOUNG STUDENTS.

ANY QUESTIONS? I LOOKED AT THE APPLICATION YOU MADE.

WE APPRECIATE THAT.

I'M CURIOUS ABOUT, YOU SAID, HAVE RELATED EXPERIENCE AS A LEADER OF A TEAM OF RECENT COLLEGE GRADUATES.

I WAS WONDERING WHAT IT WAS YOU DID WITH THEM.

YEAH, ABSOLUTELY.

SO I WORK WITH A VERY YOUNG PROFESSIONAL TEAM AT GARTNER, AND WE'RE CSE'S CONFERENCE SALES EXECUTIVES.

SO THEY'RE ALL VERY RECENTLY OUT OF COLLEGE, AND I LEAD THEM AND MANAGE THEM TO SELL GARTNER CONFERENCES.

BUT THERE'S A LOT OF NUANCES AND THINGS THAT GO WITH WORKING WITH YOUNG PROFESSIONALS, BUT I TRULY HAVE A PASSION FOR THAT AGE RANGE.

THAT'S EXCELLENT.

AND, OF COURSE, THEY'VE BENEFITED FROM SCHOLARSHIPS JUST LIKE THIS, OF COURSE.

THAT'S GREAT.

DO I HAVE A MOTION? SO MOVED.

THANKS FOR BEING HERE.

GET A SECOND? ALL IN FAVOR? AYE.

AYE.

APPRECIATE YOU BEING ON THE BOARD.

CONGRATULATIONS.

MAYOR GRAVES, CAN WE SAY WHAT THE MOTION WAS? CONSIDER APPOINTING MS. CATHERINE KEIR AS VACANCY ON THE TEXAS STUDENT HOUSING BOARD.

SO MOVED.

CAN I GET A SECOND? SECOND.

I GOT CORRECTED.

I'LL TRY TO GET THROUGH A MEETING WITH THAT.

OKAY, NEXT WE'LL HOLD A WORK SESSION ON SEVERAL TOPICS OF DISCUSSION.

[G.1. Discussion of Fire Department Pay Plan (Consideration of Action Regular Agenda Item J.3.)]

THANKS, DIANE.

NO ACTION WILL BE TAKEN.

TOWN COUNCIL WILL RECEIVE INFORMATION FROM STAFF.

DISCUSSION WILL BE HELD, AND STAFF MAY RECEIVE DIRECTION FROM THE COUNCIL AT ANY TIME.

MR. CARROLL, HOW ARE YOU, SIR? THANK YOU ALL FOR COMING.

GOOD SEEING YOU.

GOOD EVENING, MAYOR AND COUNCIL.

THIS IS KIND OF OUR FIRST WORK SESSION AS WE WARM UP FOR THE BUDGET SEASON.

SO A LOT OF THE THINGS THAT YOU'RE GOING TO SEE IN THIS WORK SESSION ARE SOME INFORMATION THAT WE WILL NEED TO CAPTURE AS WE ROLL INTO CREATING OUR FIRST DRAFT OF THE BUDGET.

AND ONE OF THE BIG THINGS THAT WE WANT TO TACKLE RIGHT OFF THE BAT IS A PROBLEM THAT WE'VE IDENTIFIED AND HAS BEEN BROUGHT TO COUNCIL'S ATTENTIONS IN PREVIOUS MEETINGS AND IN SEVERAL EMAILS FROM ME.

BUT WE HAVE A BIT OF A PROBLEM WITH TURNOVER OURSELVES IN THE FIRE DEPARTMENT.

AND A BIGGER PROBLEM FOR THAT IS THE NUMBER OF APPLICANTS THAT WE'RE RECEIVING FOR THE FIRE DEPARTMENT IS INCREDIBLY LOW.

SO WE'RE HAVING SOME DIFFICULTY RECRUITING GOOD PEOPLE HERE TO WESTLAKE AND THEN A HARD TIME KEEPING THOSE.

FOLKS HERE AS WELL.

I'M GOING TO BRING CHIEF ARD UP TO TALK ABOUT SOME SOLUTIONS THAT WE'VE WORKED ON TOGETHER AND TO KIND OF GIVE AN OVERVIEW OF THE ISSUE.

YOU GUYS ALL RECEIVED THIS PRESENTATION IN THE PACKET, SO FEEL FREE TO HIT HIM WITH QUESTIONS AS WE GO THROUGH.

AND THEN MS. SANDY GARZA IS GOING TO COME UP FROM HR AND TALK ABOUT HER PORTION OF THIS AS WELL WHERE WE'VE GONE OUT AND DONE A SALARY SURVEY TO UNDERSTAND WHAT OUR AREA CITIES ARE DOING, WHAT OUR COMPARISON CITIES ARE DOING.

I CAN SPEAK A LITTLE BIT MORE ABOUT THE COMPARISON CITIES AND WHY WE CHOSE THE ONES WE CHOSE, RIGHT? THERE'S NINE COMPARISON CITIES FOR US, AND WE CHOSE THOSE TWO YEARS AGO WHEN WE DID OUR LAST SALARY SURVEY WHEN I FIRST GOT ON BOARD.

WE WANTED TO MAKE SURE THAT WE WERE REALLY LOOKING AT CITIES THAT WE COMPETE AGAINST FOR FIREFIGHTERS, SO THE PEOPLE IN THIS GENERAL AREA AND

[00:55:02]

FOR OTHER EMPLOYEES, NOT JUST FIREFIGHTERS.

BUT WE ALSO WANTED TO LOOK AT DEMOGRAPHICS AS WELL.

SO WE LOOKED A LOT AT INCOME PER CAPITA.

BECAUSE WE UNDERSTAND THAT WITH A HIGH INCOME PER CAPITA NUMBER COMES A HIGH LEVEL OF EXPECTATION.

AND WHEN WE GO IN THE SEVERAL FIRE DEPARTMENTS THAT I'VE WORKED FOR IN THE PAST, THAT WAS READILY SEEN.

AND WHEN YOU TALK TO FIRE CHIEFS IN OTHER AREAS, YOU SEE JUST THE OPPOSITE.

IN LOWER INCOME AREAS, THERE'S REALLY, THEY JUST WANT YOU TO SHOW UP.

AND I THINK IN THE HIGHER INCOME AREAS, THERE'S A HIGH EXPECTATION THAT WE ARE DATA DRIVEN AND THAT WE ARE ENSURING THAT WE'RE GETTING THE BEST FIREFIGHTERS ON SCENE.

AND THEY HAVE THE BEST ACTIONS ON THE SCENE.

SO WITH THAT, I'M GOING TO ASK CHIEF ARD TO COME UP AND GO THROUGH THE PRESENTATION.

CHIEF? GOOD EVENING, MAYOR, COUNCIL.

THANK YOU FOR THIS OPPORTUNITY TO TALK TO YOU ABOUT FIRE DEPARTMENT COMPENSATION.

BEFORE I GET REALLY INTO, OR WE GET INTO THE COMPENSATION PORTION OF THE PRESENTATION, I JUST WANTED TO REALLY GIVE YOU SOME BACKGROUND ABOUT WHERE WE ARE AND WHY WE ARE WHERE WE ARE.

SO WITH THAT, BASICALLY TRYING TO SHARE WITH YOU, AND SOME OF THIS CAME FROM OUR ANNUAL REPORT, WE'RE A SMALL DEPARTMENT, WE HAVE 21 FOLKS IN OUR DEPARTMENT, THREE IN ADMINISTRATION, AND WE HAVE THREE CAPTAINS, THREE DRIVER ENGINEERS.

AND THEN 12 FIREFIGHTER PARAMEDIC POSITIONS.

SOME OF OUR CURRENT WORKFORCE CHALLENGES INCLUDE TWO FIREFIGHTER PARAMEDIC VACANCIES IN RED, THOSE RED BOXES.

AND THEN WE HAVE ONE FIREFIGHTER EMT CURRENTLY ATTENDING PARAMEDIC SCHOOL IN YELLOW.

HE WILL GRADUATE IN JUNE AND THEN COMPLETE TWO MONTHS OF FIELD TRAINING ONCE HE RETURNS BACK TO THE DEPARTMENT BEFORE HE'S CONSIDERED FULLY OPERATIONAL, FUNCTIONAL.

WE ALSO HAVE TWO FIREFIGHTER POSITIONS IN THE ORANGE BOXES WHO WILL NEED TO ATTEND PARAMEDIC SCHOOL.

AND WE'LL TALK MORE ABOUT THAT IN THE COMING SLIDES AND WHAT THAT TAKES IN TERMS OF TRAINING.

ALSO WANTED TO POINT OUT THAT WE ARE IN OUR THIRD HIRING PROCESS TO FIND FIREFIGHTER PARAMEDICS TO FILL CURRENT OPEN POSITIONS.

UNFORTUNATELY, WE'VE HAD VERY FEW APPLICANTS, AS WADE MENTIONED.

VERY FEW APPLICANTS HAVE ACTUALLY APPLIED.

AND THEN OF THOSE THAT...

I HAVE APPLIED, DID NOT PASS THE WRITTEN OR PHYSICAL REQUIREMENTS.

SOME OF THIS YOU ALSO SAW IN THE 2025 ANNUAL REPORT.

SINCE 2019, WE'VE HIRED AND TRAINED 19 PERSONNEL.

LIKE I MENTIONED EARLIER, WE'RE ONLY 18 PERSONS DEEP IN OPERATIONS, SO IT'S BEEN QUITE A BIT OF TURNOVER FOR US.

I LIKE TO CALL IT, IT'S KIND OF A WAVE EFFECT.

IN A SMALL ORGANIZATION, IT'S NOT A RIPPLE WHEN YOU LOSE A COUPLE PEOPLE.

IT'S A WAVE.

IT CREATES LOTS OF CHALLENGES.

AS YOU CAN SEE FROM THAT PREVIOUS SLIDE, YOU KNOW, WE'RE, AGAIN, A SMALL ORGANIZATION.

UNFORTUNATELY, WE'VE LOST A LOT OF TRAINED PERSONNEL.

WHAT WE DO KNOW IS THE ONGOING CYCLE OF HIRING AND LOSING TRAINED PERSONNEL IMPACTS OUR FINANCIAL STABILITY AND OUR OPERATIONAL READINESS.

CHIEF, JUST REAL QUICK, DO WE DO EXIT SURVEYS? SANDY, DO WE EXIT SURVEYS ON THESE? AND DO WE KNOW WHY THEY'RE LEAVING? IS IT? I CAN SPEAK TO SOME OF THAT.

I DIDN'T RECEIVE THE ACTUAL EXIT INTERVIEWS, BUT THEY DO TALK TO ME BEFORE THEY LEAVE.

THEY'RE GOING TO COMPETITIVELY PAID CITIES, AND I'LL GIVE YOU SOME OF THE NAMED CITIES.

SOME OF THEM IS LOUISVILLE FIRE DEPARTMENT OR CITY OF LOUISVILLE, FLOWER MOUND, BENTON COUNTY ESD, ROYCE CITY, PILOT POINT.

WE'VE GOT A LOT OF CITIES THAT ARE MOVING, TOO.

MOST FOLKS WE LOSE ARE RESIGNATIONS OR FIRING.

THEY'RE LOSING OR WE'RE LOSING THEM BECAUSE THEY'RE GOING TO HIGHER PAID.

ORGANIZATIONS.

AND SO LET ME ASK YOU THIS.

WHEN SOMEONE COMES IN AND WE TRAIN THEM, DO WE PAY FOR THAT TRAINING? WE DO.

DO WE HAVE A HOOK IN THEM THAT THEY HAVE TO STAY A CERTAIN AMOUNT OF TIME? WE DO NOT.

THAT'S BAD.

WE NEED TO FIGURE THAT OUT SOMEHOW.

BUT WE CAN'T MAKE ALL THAT INVESTMENT AND THEN THEY GET TRAINED AND LEAVE FOR MORE MONEY.

SURE.

SO I WOULD ASK YOU THAT'S ONE THING.

AS WE GET INTO BEFORE WE GET INTO THE COMPENSATION ANALYSIS, I REALLY WANT TO IMPORTANT RECOGNIZE THE FIRE DEPARTMENT HAS A STRONG CULTURE WITH HIGH PROFESSIONAL STANDARDS.

THE DEPARTMENT MAINTAINS RIGOROUS HIRING EXPECTATIONS, STRONG LEADERSHIP, AND COMMITMENT TO TRAINING AND PROFESSIONAL DEVELOPMENT, ALL OF WHICH SUPPORT SAFE AND RELIABLE EMERGENCY RESPONSE TO THIS COMMUNITY.

HOWEVER, THE FIRE SERVICE LABOR MARKET IN NORTH TEXAS IS EXTREMELY COMPETITIVE, PARTICULARLY IN FIREFIGHTER PARAMEDICS.

MANY COMPARABLE DEPARTMENTS POSITION THEIR COMPENSATION STRUCTURES BETWEEN THE 80TH AND 85TH PERCENTILE OF THE REGIONAL MARKET IN ORDER TO ATTRACT AND RETAIN QUALIFIED PERSONNEL.

CURRENTLY, WESTLAKE COMPENSATION LEVELS FALL BELOW THAT COMPETITIVE RANGE, WHICH CONTRIBUTES TO THE RECRUITMENT RETENTION CHALLENGES WE'VE DISCUSSED ALREADY.

THE NEXT SEVERAL SLIDES PROVIDE

[01:00:01]

ADDITIONAL CONTEXT AROUND THIS ISSUE, INCLUDING TIMELINE REQUIRED TO HIRE AND TRAIN PERSONNEL, THE COST OF REPLACING FIREFIGHTERS, AND THE DEPARTMENT'S RECRUITMENT AND RETENTION STRATEGY BEFORE REVIEWING HOW THE WESTLAKE COMPENSATION COMPARES TO THE REGIONAL MARKET.

WHAT I'M TRYING TO SHARE WITH YOU IN THIS SLIDE IS THE HIRING PROCESS IS SIMILAR FOR BOTH HIRING FIREFIGHTER EMTS AND FIREFIGHTER PARAMEDICS, AND IT TAKES APPROXIMATELY THREE MONTHS IF WE CAN HIRE THEM WITHIN THAT THREE-MONTH PERIOD.

THE CRITICAL DIFFERENCE LIES IN THE POST-HIRE TRAINING AND TIME TO FULL OPERATIONAL READINESS.

IN THE IDEAL SITUATION, WE'D WANT TO HIRE A FIREFIGHTER PARAMEDIC, FULLY CREDENTIALED PERSON.

BUT EVEN DOING SO WOULD STILL REQUIRE BEYOND THE THREE-MONTH PERIOD, A FOUR-WEEK PROBATION, WHICH IS OUR ONBOARDING PROCESS.

FIELD TRAINING, I'M SORRY, PARAMEDIC FIELD TRAINING, ABOUT TWO MONTHS LONG, WHICH REALLY EQUATES TO ABOUT SIX MONTHS LONG THAT IT TOOK TO GET THAT PERSON ON BOARD AND BE FULLY FUNCTIONAL.

IF WE HIRE A FIREFIGHTER EMT, AFTER THE HIRE PROCESS, THEY STILL HAVE TO COMPLETE A BOOT CAMP, THEY STILL HAVE TO COMPLETE A NINE-MONTH PARAMEDIC SCHOOL PROGRAM, AND THEN THE PARAMEDIC FIELD TRAINING, WHICH IS ANOTHER TWO MONTHS, THAT TOTAL TIME OF DEPLOYMENT NOW YOU AS A FULLY FUNCTIONAL MEMBER IN THE DEPARTMENT IS NOW 15 MONTHS.

AND THAT'S IF WE WERE ABLE TO HIRE THEM IN THE FIRST PROCESS, WHICH OFTEN DOESN'T HAPPEN BECAUSE WE'RE NOT RECRUITING MANY FOLKS, AND THAT'S BEEN ONE OF OUR CHALLENGES.

AND THEN ALSO, JUST TRYING TO TALK MORE ABOUT THAT, THE COST OF REPLACING FIREFIGHTERS IS VERY EXPENSIVE.

THE DEPARTMENT, WE ESTIMATE, HAS SPENT OVER $3 MILLION SINCE 2019 FOR HIRING AND REPLACING FIREFIGHTERS.

BUT IF I FIRE LEAVE THE ORGANIZATION THE DEPARTMENT MUST MAINTAIN MINIMUM STAFFING LEVELS TO ENSURE EMERGENCY RESPONSE CAPABILITY.

THIS CREATES SEVERAL UNAVOIDABLE COSTS.

ONE OF THE MAIN ONES, LARGE COST DRIVERS OVERTIME TO MAINTAIN MINIMUM STAFFING.

FIRE STATIONS, AS YOU KNOW, ARE OPERATED 24-7.

WHEN A POSITION BECOMES VACANT, THE DEPARTMENT MUST FILL THAT SHIFT WITH OVERTIME UNTIL A REPLACEMENT IS HIRED AND TRAINED.

THIS TYPICALLY IS THE LARGEST COST DRIVER, AS I JUST MENTIONED.

OVERTIME CONTINUES DURING THIS RECRUITMENT, HIRING.

BACKGROUND CHECKS, BILL TRAINING.

IN MANY CASES, THIS CAN LAST SEVERAL MONTHS, AS I JUST MENTIONED, AND RESULTS IN THOUSANDS OF DOLLARS IN OVERTIME.

OTHER COSTS INCLUDE HIRING RECRUITMENT COSTS, THE JOB ADVERTISING, THE BACKGROUND INVESTIGATIONS, THE PSYCHOLOGICAL EVALUATIONS, THE MEDICAL EXAM, THE DRUG TESTING, ADMINISTRATIVE PROCESSING AND ONBOARDING.

THEN THE TRAINING, LIKE WE WERE MENTIONING IN THE SLIDE AS WELL, THEY HAVE TO GO THROUGH THE FIELD TRAINING BOOT CAMP, OR I'M SORRY, THE DEPARTMENT ORIENTATION BOOT CAMP, AND THEN ALSO OUR FIELD TRAINING FOR THE PARAMEDIC INTERNSHIP.

AND THEN LAST IS REALLY EQUIPMENT AND UNIFORMS. WE HAVE TO ISSUE THEM BUNKER GEAR.

WE ALSO ISSUE UNIFORMS, SO THERE'S A LOT OF HARD COSTS THAT'S ACTUALLY GIVEN THEM.

WHAT WE FOUND IS THAT REPLACEMENT COSTS FOR A FIREFIGHTER PARAMEDIC AT THE LOWEST LEVELS ARE RIGHT AROUND $73,000.

FIREFIGHTER EMTS IS $196,000.

THAT VARIATION DEPENDS ON MULTIPLE FACTORS, THE LENGTH OF THE VACANCY, THE AMOUNT OF OVERTIME REQUIRED TO BACKFILL THAT SPOT, AND THEN TRAINING TIME REQUIRED BEFORE THE POSITION IS FULLY FUNCTIONAL.

THE COSTS ARE SIGNIFICANTLY HIGHER WHEN WE HIRE FIREFIGHTER EMTS, BUT THAT'S WHAT WE'VE BEEN REQUIRED TO DO BECAUSE WE WEREN'T ABLE TO FIND CREDENTIALED FOLKS WITH FULLY FIREFIGHTER PARAMEDIC.

THE KEY TAKEAWAY I'M TRYING TO GET YOU TO HAVE IS EMPLOYEE TURNOVER IN THE OUR SERVICE IS NOT JUST A STAFFING ISSUE OR CONCERN.

IT'S A SIGNIFICANT FINANCIAL ISSUE.

EACH DEPARTURE REQUIRES THE CITY TO ABSORB SUBSTANTIAL OVERTIME AND THE HIRING COSTS SIMPLY MAINTAIN THE LEVEL OF SERVICE.

WHAT WE'RE HOPING IS WE CAN HAVE INVESTMENT IN COMPETITIVE COMPENSATION AND RETENTION STRATEGIES THAT SIGNIFICANTLY REDUCE THE REPLACEMENT COST WHILE MAINTAINING STABILITY WITHIN THE DEPARTMENT.

WHAT WE'RE TRYING TO DO IN OUR DEPARTMENT AND MY PROMISE TO YOU IS THAT WE'RE GOING TO HOLD THE STANDARD.

WE'RE GOING TO MAINTAIN FOCUS ON CHARACTER AND ACCOUNTABILITY.

WE'RE GOING TO STRENGTHEN AND MAINTAIN OUR CULTURE FOR A POSITIVE ENVIRONMENT THAT EMPOWERS GROWTH AND DEVELOPMENT.

AND WE ALSO WANT TO PRIORITIZE PROFESSIONAL DEVELOPMENT.

WE WANT TO ENSURE ALL PERSONNEL RECEIVE THE TRAINING AND EDUCATION NEEDED TO SERVE THIS COMMUNITY EFFECTIVELY.

BASICALLY, WHAT WE'RE ASKING AT THIS POINT IS THAT YOU HELP US WITH ADOPTING A COMPETITIVE PAY PLAN THAT'S THAT HAS PREDICTABLE SALARY PROGRESSION.

AND WITH THAT, I'LL PAUSE RIGHT HERE AND TRY TO ANSWER ANY QUESTIONS YOU MAY HAVE BEFORE I TRANSITION THE SLIDES.

I THINK I KNOW THE ANSWER TO THIS.

YOU'RE NOT GETTING MANY APPLICANTS BECAUSE OUR PAY SCALE IS LOW.

I'M SORRY? WE'RE NOT GETTING MANY APPLICANTS BECAUSE

[01:05:01]

OF OUR PAY SCALE.

THAT'S WHAT WE BELIEVE.

THAT'S WHAT YOU BELIEVE.

OUR STOPGAP HAS BEEN HIRING LESS CREDENTIALED FOLKS, FIREFIGHTER EMTS, AND SEND THEM TO THE SCHOOL.

AND WE DID THAT TO MAINTAIN MINIMUM STAFFING AND SO AS NOT TO REDUCE SERVICE DEMANDS OR LEVELS.

BUT UNFORTUNATELY, IT'S BEEN VERY EXPENSIVE FOR US TO DO THAT.

AND THEN ONCE WE'VE TRAINED THEM, THEY'VE LEFT SOMEWHERE ELSE.

I WOULD MENTION, YOU KNOW, IT WAS BROUGHT TO MY ATTENTION ABOUT HAVING SOME KIND OF RETENTION REQUIREMENTS IF WE'VE TRAINED THEM.

SOME OF OUR INDUSTRY TRIES THAT, BUT IT'S TYPICALLY NOT REAL SUCCESSFUL.

WHEN SOMEBODY DOESN'T WANT TO BE THERE, THEY'RE NOT AS PRODUCTIVE.

AND THAT'S ANOTHER CHALLENGE WE HAVE, BUT I'M STILL OPEN TO IT.

A DOUBLE-EDGED SWORD, IF YOU WILL.

YEAH, I WOULD JUST, I MEAN, A LOT OF COMPANIES HAVE THIS DILEMMA, RIGHT? THEY HIRE SOMEBODY AND THEY INVEST IN YOU AND YOU EITHER HAVE TO STAY UNTIL A CERTAIN TERM OR YOU HAVE TO PAY BACK SOME OF THE COSTS INVESTED IN YOU.

AND I DON'T KNOW WHAT'S TRADITIONAL IN FIRE DEPARTMENTS, BUT I HATE TO THINK THAT WE'RE THE TRAINING GROUND AND PEOPLE COME IN AND GET TRAINED AND THEN THEY LEAVE.

BUT, LOOK, I THINK THIS IS, NOT TO JUMP AHEAD, THIS IS A...

PRETTY CLEAR SOLVABLE PROBLEM.

WE NEED, YOU KNOW, WHAT I'D LOVE TO SEE IS CHANGE THE SALARY AND SEE HOW MANY APPLICANTS YOU GET TOMORROW.

THAT WOULD BE THE ACID TEST IF WE'RE RIGHT OR NOT.

BUT WE HAVE TO GET THIS FIXED.

CHIEF, IF MY MATH CORRECTS, THERE'S 21 PEOPLE THAT WE LOST FROM 2019 UNTIL NOW.

DO WE KNOW HOW MANY OF THEM LEFT SPECIFICALLY FOR PAY INCREASES? I WOULD SAY THE MAJORITY.

I CAN'T SAY WITH CERTAINTY RIGHT NOW.

THERE MIGHT BE A FEW THAT HAVE FOR PAY AND OPPORTUNITY, SOMETHING THAT MAYBE WE CAN'T OFFER BECAUSE WE'RE A SMALL COMMUNITY AND NOT HAVING A LOT OF DIVISIONS.

BUT I WOULD SAY A VAST MAJORITY WANTED TO BE HERE FOR A REASON BECAUSE THEY DID LIKE THE SMALL-TOWN FEEL, AND THEY DIDN'T WANT TO BE A NUMBER.

I WANTED TO...

TO KNOW THEIR FAMILY AND VICE VERSA.

SO I THINK THERE'S BEEN A PRETTY CLEAR AWARENESS TO WHAT WE ARE, AND WE WEREN'T TRYING TO FABRICATE THAT IN ANY WAY.

WE'RE A SMALL COMMUNITY WITH A SMALL FIRE DEPARTMENT THAT'S GOING TO SERVE THE BEST WE CAN.

BUT SOME NEED MORE.

THEY'RE GROWING FAMILIES.

THESE ARE YOUNG MEN.

THEY'RE TALENTED.

I THINK WE'VE HIRED TALENTED PEOPLE, BUT THEY'RE GROWING, AND THEY'RE WANTING A NEW OPPORTUNITY.

DO YOU FIND THAT WHEN ONE LEAVES, ANOTHER ONE? GOES WITH THEM.

THESE GUYS SPEND A LOT OF TIME TOGETHER, RIGHT? IT'S BEEN HAPPENING CYCLICALLY, TOO.

JUST A COUPLE YEARS AGO, WE LOST THREE, AND IT'S JUST BOOM, BOOM, BOOM.

WELL, WE KNOW IT'S NOT CULTURE OR WORK CONDITIONS.

WHAT WE'VE LEARNED, AND ALSO I'VE LEARNED, JUST TO BASICALLY DIGRESS A LITTLE BIT, IS A LOT OF THESE FOLKS THAT WE'VE LOST, CERTAINLY IN RECENT TIME, ARE STILL SOME OF OUR BEST FRIENDS.

IF OUR FIREFIGHTERS WERE SITTING IN HERE RIGHT NOW, THEY WOULD TELL YOU THAT.

THEY'RE STILL HANGING OUT WITH THOSE SAME FOLKS.

SO ONE OF MY NEIGHBORS IS A YOU FIREFIGHTER THAT LEFT HERE AND WENT TO LOUISVILLE.

HE HANGS OUT WITH OUR FOLKS A LOT.

THERE'S GOOD RELATIONSHIPS IS WHAT I'M TRYING TO COMMIT TO.

IT'S NOT A CULTURE ISSUE.

IT'S AN ECONOMIC DECISION.

SO MAYBE AN INCREASE IN PAY, WE COULD GET SOME OF THESE GUYS BACK? POSSIBLY.

THAT'S WHAT I'M CROSSING MY FINGERS BECAUSE I HAVE SOME FOLKS I'D LIKE TO HIRE BACK.

SO I HAVE TWO QUESTIONS.

I KNOW WITHIN THE LAST TWO YEARS WE DID DO AN ANALYSIS AND A PAY RAISE AND WE ALSO ADDED THE EXTRA POSITION TO MAKE THE FIVE-MAN SHIFT.

WE WENT FROM FOUR TO A FIVE AT THAT POINT.

HAVE YOU SEEN, THIS CLEARLY IS CREATING THE OVERTIME ISSUE BECAUSE WE'RE NOT ABLE TO FILL THAT FIFTH POSITION THAT WE ADDED BECAUSE OF THE TURNOVER.

DO YOU THINK THAT, I MEAN, OBVIOUSLY I KNOW THAT IT'S THE RIGHT DECISION TO HAVE THE FIVE-MAN SHIFT, BUT IS THAT A PART OF THE PROBLEM? IT'S PART OF OUR CHALLENGE BECAUSE WE MOVED FROM A FIVE-MAN SHIFT PERSON OR FROM A FOUR PERSON MINIMUM TO A FIVE PERSON MINIMUM.

WE'RE OVERSTAFFED BY ONE PERSON PER SHIFT, BUT WE'RE ALREADY SHORT RIGHT NOW.

TECHNICALLY, AS OF TODAY, THE TWO VACANCIES, I'VE GOT ONE INJURED AND ONE IN PARAMEDICAL, SO I'VE GOT FOUR PERSONS SHORT.

LET ME GO BACK ON THE SLIDES HERE.

IF YOU WERE TO LOOK AT EACH SHIFT, THERE'S THREE SHIFTS THERE, AND WE NEED FIVE PERSON MINIMUM.

I'VE ALREADY GOT FOUR GONE RIGHT NOW, AND THAT'S HAPPENING.

RIGHT NOW TODAY.

SO WHAT HAPPENS IF SOMEBODY NEEDS TO TAKE OFF BECAUSE OF VACATION OR TRAINING OR SICK, WE HAVE TO BACKFILL THOSE SPOTS TO MAINTAIN THAT MINIMUM FIVE PERSON.

SO THAT'S HAPPENING JUST NATURALLY.

AND THEN IF WE HAVE TO SEND OTHER FOLKS TO SCHOOL, THEN IT'S EVEN MORE OVER TIME.

NO, UNDERSTOOD.

BUT OBVIOUSLY HAVING THE FIVE PERSON SHIFT CREATES THE CHALLENGE BECAUSE WHEN WE HAD A FOUR PERSON SHIFT, WE HAD MORE PEOPLE TO FILL

[01:10:01]

THOSE VACANCIES.

I MEAN, WE DIDN'T HAVE THE VACANCIES.

THEORETICALLY, BECAUSE WE HAD THANK YOU.

WE HAD FOUR-PERSON MINIMUM WITH FIVE PEOPLE.

SO WE WENT TO SIX PEOPLE PER DAY TO FIVE-PERSON MINIMUMS NOW.

SO IT'S SLIGHTLY LARGER.

SO NOW WHEN WE DID THAT PAY CHANGE PREVIOUSLY, DID YOU SEE A BIG INCREASE IN APPLICANTS? WE DID NOT SEE A BIG INCREASE IN APPLICANTS.

WE HAD SOME STABILITY FOR A LITTLE WHILE WITH THE PROMISE OF POTENTIALLY GOING HIGHER.

SO WE SAW A LITTLE BIT OF STABILITY THERE.

SO IT REALLY DIDN'T, I MEAN, AND I TALKED TO WADE ABOUT THIS, AND HE WAS SAYING THAT AT THAT POINT WE RAISED SALARIES, BUT WE ONLY STILL STAYED WITHIN LIKE A 50 PERCENTILE.

AND THAT WAS OBVIOUSLY THE WRONG DECISION, RIGHT? WE SHOULD HAVE GONE TO A HIGHER PERCENTILE.

I MEAN, YEAH, AT THAT POINT, AND THAT MIGHT HAVE PUT US IN A BETTER POSITION.

HOW FAR OFF ARE WE? I'M SORRY? HOW FAR OFF ARE WE COMPARED TO OTHER CITIES? I THINK THAT MIGHT BE SANDY'S.

YEP, THAT'S COMING UP IN SANDY'S PRESENTATION.

SO LET'S MOVE TO THAT UNLESS ANYBODY ELSE HAS QUESTIONS FOR THE CHIEF.

AND I WILL SAY, I KNOW INDUSTRY STANDARD, THE DEPARTMENTS THAT HAVE TRIED THE HOOK, SO TO SPEAK, IT'S GENERALLY TWO YEARS.

AND IF YOU LOOK AT OUR DATA, MOST OF OUR GUYS THEY'RE NOT LEAVING WITHIN THE FIRST TWO YEARS BECAUSE THEY'RE NOT EVEN FULLY TRAINED IN THE FIRST TWO YEARS.

SO IT WOULD BE VERY DIFFICULT FOR THAT TO WORK OUT FOR US.

WE'D HAVE TO GO MUCH LONGER.

AND THEN I WOULD HAVE TO SPEAK WITH OUR TOWN ATTORNEY, TOO, BECAUSE THAT'S BEEN CHALLENGED IN COURT SEVERAL TIMES AS WELL ON THE FIREFIGHTER SIDE OF THINGS.

WELL, WE'RE GOING TO BE COMPLIANT.

I KNOW THAT.

STEVE, THANK YOU.

WE'RE GOING TO GET THIS SOLVED.

HI, SANDY.

HI.

ON THE NEXT FEW SLIDES, YOU ALL WERE A PERFECT SEGUE ASKING WHAT THE COST WOULD BE, WHERE DO WE STAND TODAY? BUT BEFORE MOVING FORWARD, I'D LIKE TO TAKE A MINUTE TO ACKNOWLEDGE THE COLLABORATION EFFORT TO GET TO THESE NUMBERS.

THE FIRE ADMINISTRATION, ALONG WITH A GROUP OF FIREFIGHTERS, WORKED REALLY HARD TO ENSURE THAT THEY PROVIDED THE INPUT, THE DATA, AND THE PERSPECTIVE THAT WHEN WE WERE WORKING THROUGH THIS COMPENSATION REVIEW, WE HAD A REALITY OF WHAT REALLY HAPPENS IN THE DAY-TO-DAY OF A FIRE DEPARTMENT.

SO IT WAS GREAT WORKING.

WE WENT TO SEVERAL MEETINGS OVER AT THE FIRE DEPARTMENT AND THEY PUT IN A LOT OF THIS WORK AS WELL.

ALRIGHT, SO AS CHIEF WAS EXPLAINING, THERE ARE DIFFERENT POSITIONS IN THE FIRE DEPARTMENT.

THE GOAL ULTIMATELY WOULD NOT BE TO HAVE TO FIRE, OR FIRE, NOT THAT EITHER, HIRE AN EMT JUST BECAUSE OF THE EXTRA LENGTH IN THAT TRAINING.

BUT THE REALITY IS THAT'S WHERE WE'RE AT AT TIMES.

ON EACH OF THE SCREENS, WHAT WE DID WAS PROVIDE WHERE WESTLAKE SITS TODAY, WHAT THE MARKET AVERAGE IS AND WHAT THE GOAL WOULD BE IN ORDER TO TO RETAIN THE EMPLOYEES THAT WE HAVE AND ALSO TO RECRUIT NEW EMPLOYEES.

ON THE EMT, WE FOUND THAT WESTLAKE CURRENTLY IS 10% BELOW MARKET AVERAGE.

SO THERE IS A RECOMMENDATION IN ORDER TO EXCEED THAT MARKET AVERAGE TO HAVE A STARTING POINT OF 77,150.

I'D LIKE FOR YOU TO KEEP IN MIND THESE ARE CURRENT FIGURES WITH OTHER CITIES.

OTHER CITIES ARE DOING THIS RIGHT NOW AS WELL.

SO WHILE WE'RE COMPARING OUR MARKET AVERAGE, WE NEED TO KNOW THAT THAT MARKET AVERAGE MAY BE MOVING UP DURING THIS NEXT FISCAL YEAR ALSO.

SO WE'RE ASKING AT AN 80TH PERCENTILE JUST SO THAT WE CAN ENSURE THAT WE'RE STILL STAYING SLIGHTLY AHEAD, HOPING THAT OTHERS DON'T INCREASE TOO MUCH AND WE STILL REMAIN COMPETITIVE.

ANNIE, MAY I ASK A QUESTION ABOUT CHOOSING, AND MAYBE THIS IS FOR CHIEF HART AS WELL, WHY 80TH PERCENTILE? BECAUSE I KNOW FOR THE PLACES WHERE THE POSITIONS WERE UNDER MARKET, IT MAKES A LOT OF SENSE TO BE AT LEAST AT MARKET.

WE COULD BE AT THE 100TH PERCENTILE, AND WE KNOW THAT WE'D BE AT THE TOP OF THE RANGE.

WHY THE 80TH? WHY NOT THE 70TH? I MEAN, WE'RE GOING FROM EITHER AT OR BELOW AVERAGE, WAY ABOVE AVERAGE.

WHY DID WE CHOOSE THAT? SURE, I CAN ATTEST TO PART OF THAT AS THE TOWN MANAGER.

SO WHEN WE GO BACK THROUGH AND WE LOOK AT THESE COMPARISON CITIES, GOING TO THE 80TH PERCENTILE IN MOST OF THESE POSITIONS, I THINK IN CAPTAIN MAY BE THE ONLY DIFFERENCE, BUT IN MOST OF THESE POSITIONS IT STILL HAS

[01:15:01]

TWO TO THREE APARTMENTS IN OUR IMMEDIATE NINE COMPARISON CITIES.

WHEN WE LOOK AT THE AVERAGE DFW MARKET, IT'S VERY SIMILAR.

SO WHEN YOU'RE TALKING ABOUT AVERAGE OR THE 50TH PERCENTILE, I KNOW WHEN I'M LOOKING AT DATA, I HATE THAT TERM BECAUSE THAT MEANS HALF THE PEOPLE OUT THERE ARE BETTER THAN WE ARE, RIGHT? SO I DON'T WANT TO BEING AT THE 50TH PERCENTILE IN THE DFW MARKET, I MEAN, THERE'S 14 DIFFERENT FIRE DEPARTMENTS JUST IN NEFTA THAT WE COMPARE OURSELVES WITH PRETTY CLOSELY IN HOW WE RUN AND OPERATE AND HOW WE TRAIN TOGETHER.

SO WHEN YOU START GOING OUT TO THE OUTER DFW AREA, THAT 80TH PERCENTILE, THERE'S STILL QUITE A FEW DEPARTMENTS THAT ARE GOING TO BE ABOVE US IN OUR AREA, AND THIS ENSURES THAT WE'RE COMPETITIVE.

I DON'T WANT TO GO TO THE TOP, AND THIS IS A VERY CONTROVERSIAL STATEMENT, AND THE FIREMEN WILL PROBABLY PUNCH ME IN THE EAR NEXT TIME THEY SEE ME.

BUT I DON'T WANT TO BE AT THE TOP BECAUSE I WANT CULTURE TO MEAN SOMETHING.

NO DOUBT.

LET ME ASK YOU SOMETHING.

SO LET'S SAY WE I LIKE ROUND NUMBERS.

I'M GOING TO USE 15K. LET'S SAY WE WENT UP 15K.

FOR FIREFIGHTER, I THINK THERE'S LIKE, OR FOR NEW HIRE.

THAT'S GOING TO TAKE THEM ABOVE PEOPLE THAT HAVE BEEN THERE ONE YEAR AND TWO YEARS AS WELL, RIGHT? BECAUSE YOU'RE GOING TO HAVE A DISPARITY IN NEW HIRE VERSUS SOMEBODY THAT'S THERE.

OR AM I WRONG? WELL, PART OF THIS REQUEST IS TO MOVE FROM A RANGE THAT WE'RE CURRENTLY IN TO AN ACTUAL STEP PLAN.

SO IT WOULD REALLY BE VERY SIMILAR TO WHAT WE DO ON THE ACADEMY SIDE WITH THE TEACHER, WHICH I KNOW AS COUNCIL CAME IN, SOMETIMES THAT'S.

DIFFERENT COMING FROM THE OUTSIDE WORLD OR THE CORPORATE ROLE ON HOW WE ACTUALLY WORK ON STEPS.

SO THE STUDY, WHAT WE DID AND HOW WE CAME UP WITH WHAT THE TOTAL COST WOULD BE IS THAT WE TAKE CURRENT FIREFIGHTERS AND THEIR YEARS OF EXPERIENCE IN THAT PARTICULAR POSITION AND ENSURE THAT THEY ARE ON THE CORRECT STEP.

THIS IS SOMETHING THAT'S BEEN REQUESTED FROM THE FIRE DEPARTMENT.

IT'S A THE VERY COMMON IN THE FIRE WORLD, BUT THERE ARE MAYBE TWO SCHOOLS OF THOUGHT ON THAT.

DO YOU LOCK YOURSELF INTO THESE STEPS UNTIL THEY ARE VOTED ON AND PASSED AGAIN TO INCREASE? AND THAT SEEMS TO BE THE WAY THAT THEY WOULD PREFER TO GO.

THEY WANT TO KNOW WHERE THEY'RE GOING TO BE NEXT YEAR.

SO THERE'S 21 FIREFIGHTERS, RIGHT? SOMETHING LIKE THAT? 20, 21 TOTAL? YES, THERE'S 21 IN THEIR DEPARTMENT.

OUT COUNT, THAT'S INCLUDING THE CHIEF.

IF YOU PAID EACH OF THEM $15,000 A YEAR MORE, EACH OF THEM, THAT'S $315,000, RIGHT? THAT'S SIGNIFICANTLY LESS THAN THE $500,000 WE'RE BURNING EVERY YEAR, YOU KNOW, A YEAR TRAINING PEOPLE.

SIMPLE MATH.

AND I'M A BIG BELIEVER, YOU KNOW, THE ONLY REASON I WAS EVER SUCCESSFUL IS I HIRED EXTRAORDINARY PEOPLE AND MY GOAL IS TO PAY THEM AS MUCH MONEY AS I CAN GET AWAY WITH.

AND I'M A BIG BELIEVER IN THAT.

YOU GET BETTER PEOPLE, YOU GET LOYALTY FROM IT.

PAY DOES DRIVE LOYALTY.

YOU PUT CULTURE ON TOP OF THAT, IT BECOMES THE GREATEST THING IN THE WHOLE WORLD, RIGHT? THE WORST THING WE CAN DO IS SAY, HEY, LET'S DO THIS PAY INCREASE.

LET'S DO THIS RIGHT.

AND WE MINIMIZE, WE CHOOSE THE MINIMUM AMOUNT THAT WE THINK WE'RE GOING TO NEED TO BE ABLE TO SOLVE THE PROBLEM.

THE PROBLEM IS GOING TO HAPPEN AGAIN HERE IN ANOTHER COUPLE OF YEARS.

IT'S JUST GOING TO FACE US.

WHY NOT GO UP AND IF WE'RE SPENDING $506,000 A YEAR TRAINING PEOPLE THAT WE LOSE, I'M BETTER OFF TAKING $500,000.

$400,000 OF THAT AND GIVING THAT IN PAY RAISES TO PEOPLE AND SEEING IF THAT KEEPS PEOPLE AROUND.

AND TAKE CARE OF THE ENTIRE DEPARTMENT.

THAT ALLOWS YOU TO GIVE A RAISE NOT TO THE NEW HIRES, TO EVERYONE ON THE STEP SYSTEM, AND YOU'RE STILL SAVING $100,000 A YEAR.

IF YOU JUST GIVE $15,000, WHICH GETS YOU DRAMATICALLY ABOVE WHAT YOUR CURRENT MARKET AVERAGE IS, AND IT'S ABOVE THE $77,000, YOU'RE UP AT $82,000.

SO NOW YOU'RE GETTING COMPETITIVE WITH SOUTHLAKE AND KELLER, OR SOUTHLAKE AND...

WHICH ARE DRIVERS, STILL SAVING $200,000 A YEAR OVER WHAT WE WOULD DO IF WE CAN REDUCE THE...

MR. GOUDET, YOU'RE EXACTLY RIGHT.

AND I THINK WHEN YOU GO TO THE END OF THE SLIDES HERE, YOU'RE GOING TO SEE THAT GOING WITH THE METHOD THAT WE WENT WITH, IT IS MORE OF AN INDUSTRY STANDARD AND SOMETHING THAT THEY'RE USED TO SEEING.

SO IT'S SOMETHING THAT THEY CAN GET BEHIND AS FIREFIGHTERS.

AND THEY'LL UNDERSTAND A LOT OF WHAT WE TALKED ABOUT WITH STEP PLANS, RIGHT, IS UNDERSTANDING WHERE YOU'RE GOING TO BE IN FOUR OR FIVE YEARS.

THERE'S A PRO AND A CON TO STEP PLANS, AND WE'VE TALKED ABOUT THIS WITH THE FIRE DEPARTMENT, RIGHT? STEP PLANS ARE EITHER FUNDED OR THEY'RE NOT FUNDED.

SO YOU EITHER GO TO THE STEP ANNUALLY OR THEY'RE JUST NOT FUNDED COMPLETELY.

IT'S NOT A HIGH PERFORMERS GET IT, LOW PERFORMERS DON'T.

IT'S A STEP PLAN, RIGHT? SO THE ONLY DIFFERENCE WOULD BE IS IN A FIRE DEPARTMENT,

[01:20:01]

POLICE DEPARTMENT ENVIRONMENT, IF YOU'RE A PROBLEM, YOU DON'T WORRY ABOUT AN INCREASE.

THEY GET RID OF YOU.

MEAN WE...THEY DON'T MESS AROUND WITH THIS AT ALL, RIGHT? SO IF IT'S A SAFETY ISSUE, IT'S SOMETHING LIKE THAT, THAT'S GOING TO BE A MAJOR PROBLEM.

THEY'RE GOING TO GET RID OF YOU.

SO YOU'RE GOING TO SEE THAT THIS 80TH PERCENTILE WILL PUT US EXACTLY WHERE YOU'RE TALKING ABOUT.

IT'S A LITTLE OVER $360,000.

AND WE CAN JUMP TO THAT LAST SLIDE IF YOU WANT TO AND JUST SEE WHAT THAT TRUE NUMBER IS.

AND THEN WE CAN WORK BACKWARDS IF COUNCIL HAS ANY FURTHER QUESTIONS.

BUT $357,000, IF WE START, IS THE ANNUAL COST ON THAT? AND IF WE DO IT AT MID-YEAR NOW, WHICH WOULD HELPFULLY, LIKE THE MAYOR WAS TALKING ABOUT, HELP WITH THE RECRUITING FOR THOSE OPEN POSITIONS TODAY, IT'S ONLY $151,000 FOR THE REMAINING OF THE YEAR.

AND THEN NEXT YEAR IT WOULD BE $357,000 ABOVE WHAT THEIR ANNUAL COSTS ARE THIS YEAR, STILL CONSIDERABLY LESS THAN THE $500,000.

IF YOU GIVE IT A GOOD RAISE AND IT ENDS UP IMPACTING EVERY ONE OF OUR FIREFIGHTERS, IT PAYS DIVIDENDS.

YOU CAN PROBABLY THEN COME BACK IN AND TAKE A LOOK AT, DO WE DO A TWO-YEAR? RETENTION AGREEMENT FOR NEW FIREFIGHTERS COMING IN BECAUSE WE'RE GIVING YOU A WELL ABOVE MARKET PAY TO COME HERE AND SEE HOW THAT FLOATS.

I MEAN, IT'S SOMETHING TO LOOK AT OR WHERE IT'S BEEN TRIED, BUT YOU KNOW, THOSE THINGS WORK IN EVERY OTHER JOB IN THE WORLD.

THAT IS THE PLAN.

AND IF YOU SEE HERE, LOOKING AT THE ANNUAL INCREASES, YOU KNOW, THE MAJORITY OF THE DEPARTMENT IS FIREFIGHTER PARAMEDICS, BUT THAT'S ALSO WHERE THE MAJORITY OF THE MONEY IS GOING, RIGHT? SO WE'RE SEEING THAT THE PROBLEM IS GETTING SOLVED BECAUSE WE'RE PUTTING THE MONEY WHERE OUR PROBLEM IS.

WE'RE MAKING SURE THAT THOSE CAPTAINS AND THE DRIVERS ARE ALMOST STEP PLANS AS WELL SO WE DON'T HAVE AN OVERLAP AND PAY NOTHING IS A LITTLE MORE WONKY IN A PARAMILITARY ENVIRONMENT WHEN THE PERSON YOU'RE SUPERVISING MAKES A LOT MORE MONEY THAN YOU DO SO WE HAVE TO HAVE THAT SPECIFIC GAP 5% INCREASE SO THAT'S AND THAT'S WHAT WE'VE DONE THAT'S WHAT WE'VE DONE THERE YOU GO SIMPLE I DO WANT TO ECHO WHEN CHIEF ART SAID ON THOSE EXIT INTERVIEWS, I'VE SAT WITH SOME OF THE FOLKS LEAVING, AND IT'S ALMOST PAINFUL TO SEE IT.

LIKE, WE DON'T WANT TO LEAVE, BUT WE ARE BEING OFFERED THIS MUCH MONEY.

IT'S LIKE, HOW CAN I DO IT? I HAVE A FAMILY, BUT LITERALLY SITTING IN THE OFFICE SAYING THOSE WORDS.

AND WE STILL HEAR FROM THEM EVERY ONCE IN A WHILE, AND THAT'S FROM HR.

I'M NOT USUALLY THE DEPARTMENT THEY'LL CALL BACK BUT I DO HEAR FROM A LOT OF THE STAFF THAT LEAVES.

WAIT, WHERE'S THE MONEY GOING TO COME FROM? I'M SORRY? WHERE'S THE MONEY GOING TO COME FROM? WELL, WE GAVE YOU A POSITIVE BUDGET THIS YEAR OF OVER $3 MILLION.

SO WE WOULD DO A BUDGET TRANSFER FROM THAT OVERAGE TO FUND THIS.

I THINK WE SHOULD ALSO CHALLENGE THE CHIEF TO REDUCE THE...

PEOPLE LEAVE, AND THAT'S PART OF THE CHALLENGE, BECAUSE THEN HE CAN PAY FOR IT HIMSELF.

THAT'S EXACTLY RIGHT.

WELL, AND ALSO BY RAISING THESE SALARIES, YOU'LL PROBABLY BE ABLE TO...

TO GET PEOPLE IN AT THE HIGHER TRAINING LEVEL SO YOU DON'T HAVE TO DO IT, RIGHT? I MEAN, THAT'S THE GOAL IS TO GET THE PARAMEDICS.

WE WOULD LOVE TO BE TRACKING THAT.

SO WE'RE GOING TO TRACK THAT.

IF THIS IS APPROVED TONIGHT, THEN WE'RE GOING TO BE TRACKING THAT OVER THE NEXT SEVERAL YEARS, AND WE'RE GOING TO BE ABLE TO SHOW YOU EXACTLY HOW MANY DOLLARS WE'VE SAVED IN DOING THIS.

YEAH, I JUST, YOU KNOW, A COUPLE THINGS.

WE'RE GETTING READY TO TALK ABOUT BUDGET AND EVERYTHING GOING FORWARD.

THIS COUNCIL HAS DONE A FABULOUS JOB.

OUR FINANCIAL CONDITION, I DIDN'T REALIZE THIS UNTIL, A FEW WEEKS AGO, OUR GENERAL FUND'S GONE UP 28.6% SINCE THIS COUNCIL'S BEEN TOGETHER, RIGHT? WE ARE GOING WELL.

WE KNOW WE HAVE A LOT OF THINGS IN FRONT OF US.

AND I THINK THE EXPECTATION FROM OUR RESIDENTS IS WE NEED TO MANAGE THIS MONEY VERY TIGHTLY.

BUT THE OTHER EXPECTATIONS, WE ARE WESTLAKE.

AND THE MONEY'S GOING OUT THE DOOR, TODD, TO YOUR POINT.

AND A LOT OF ORGANIZATIONS GET THIS WRONG, RIGHT? THEY'RE NOT GOING TO DO THE RAISE, AND THEY'RE GOING TO CONTINUE.

THEY DON'T UNDERSTAND.

WE HAVE THE DATA NOW TO UNDERSTAND, AND WE HAVE THE MONEY.

SO I WOULD ENCOURAGE ALL TO GET THIS IN PLACE.

AND, CHIEF, JUST BE ALL OVER THE NUMBERS AND REPORT BACK TO US.

AND, I MEAN, WHAT I'D LOVE TO SEE IF THIS GETS PASSED IS TOMORROW YOU HAVE 20 PEOPLE APPLYING FOR A JOB, AND THAT WOULD TELL US THAT WE DID THE RIGHT THING.

AND FIVE OF THEM ARE PEOPLE WHO JUST LEFT.

ANDY, ONE QUICK QUESTION.

THIS IS MOVING US TO A STEP PLAN.

HOW IS IT DESIGNED NOW? IN A RANGE.

IN A RANGE.

SO WITHIN THOSE RANGES, DEPENDING ON THE YEARS OF SERVICE, THE SALARY IS DEPENDENT ON THAT? OR IS IT? WELL, WHEN I FIRST GOT HERE, THERE WAS A LITTLE DISCREPANCY, I GUESS, BETWEEN FIREFIGHTER SALARIES.

AND SO IT HAS SHIFTED.

IN THE FIVE YEARS THAT I'VE BEEN HERE, IT'S KIND OF SHIFTED WITH THE MENTALITY OF WE DON'T GIVE OUTSIDE CREDIT

[01:25:02]

AT ALL.

AND I WAS LIKE, WHOA, BECAUSE I'M USED TO, AS PEOPLE COME IN, WE LOOK AT EXPERIENCE, WHERE WOULD YOU FIT? AND THEY WERE LIKE, NO, FROM HOUSE TO HOUSE.

WELL, EVERY CITY AROUND US STARTED HONORING THAT OUTSIDE CREDIT, AND THAT WAS ANOTHER PIECE OF US STAYING BEHIND.

SO OVER THE YEARS, WE'VE TRIED TO GO INTO, LIKE, WELL, LET'S BRING SOME FOLKS IN, GIVE THEM THE CREDIT, BUT THEN WE HAD TO MAKE SURE WE WERE KEEPING SOME INTERNAL EQUITY ALSO BECAUSE YOU DON'T WANT TO ROCK THE BOAT THAT WAY.

SO TO ANSWER YOUR QUESTION, WE WERE AT A RANGE.

WE'VE DONE THE HOMEWORK WHERE EVERYBODY WOULD BE PLACED WITH THEIR CORRECT YEARS OF SERVICE, AND THAT'S WHERE WE CAME UP WITH THOSE NUMBERS.

AND BEFORE WE LEAVE, OR I LEAVE THE PODIUM, WHAT WE ARE ASKING IS THAT IT WOULD BE EFFECTIVE MAY 4TH. IT'S NOT EXACTLY HALF THE YEAR, A LITTLE LESS THAN HALF, BUT THAT WOULD REALLY HELP WITH THE VACANCIES, AND IT'S JUST A GOOD POINT FOR US TO MOVE FORWARD.

IT WILL COME BACK IN THE REGULAR SESSION, BUT FOOD FOR THOUGHT.

ABSOLUTELY.

I MEAN, THAT MAKES COMPLETE SENSE TO ME.

CHIEF, DO YOU BELIEVE THAT HAVING A STEP PLAN IS ALSO AN ATTRACTIVE THING FOR PEOPLE TO COME IN AS A RECRUITING TOOL? YES, SIR.

BECAUSE THE MOST POPULAR DEPARTMENTS IN DFW HAVE STEP PLANS.

IT'S NOT THE ONLY PLAN.

THERE ARE ONES WITH SALARY RANGES, BUT WHAT WE FIND IS MOST OF THE POPULARITY IS AMONG THOSE FOLKS KNOWING WHAT THEIR NEXT YEAR LOOKS LIKE BECAUSE THEY ARE, IN LARGE PART, YOUNG, GROWING FAMILIES.

THEY WANT TO KNOW, HEY, I'M GOING TO MAKE THIS MUCH NEXT YEAR AND SO ON.

THEY SEE SOME SALARY PROGRESSION AND NOT A GUESS ON WHETHER THE TOWN HAS BUDGET FOR IT OR NOT.

WE COMMIT TO THE PLAN AND THEN THAT'S WHAT THEY DO.

AND I'M ASSUMING THAT WHEN WE COME FORWARD TWO YEARS FROM NOW, IF WE'RE ARGUMENTATIVE, WE WOULD SAY WE'RE GOING TO HAVE A 5% INCREASE.

I'M MAKING THIS UP.

5% INCREASE AND ACROSS THE BOARD, ALL THE STEP PLANS WOULD GO UP BY 5%.

THE PLAN AS IT SITS TODAY IS THAT EVERY OTHER YEAR WE WOULD GO OUT FOR ANOTHER SALARY SURVEY JUST TO MAKE SURE THAT WE'RE STAYING UP WITH THE AREA DEPARTMENTS.

SO...

WE DON'T WANT TO FALL BELOW THAT 80TH PERCENTILE IF WE DO NOT VERY FAR AND NOT VERY LONG, RIGHT? SO IF WE ARE ON IT EVERY OTHER YEAR, SO THE PACE THAT WE'VE SET WITH OUR HR NOW IS THAT ON ONE YEAR WE'RE GOING TO LOOK AT BENEFITS AND MAKE SURE THAT OUR BENEFITS ARE ALIGNED CORRECTLY WITH OTHER DEPARTMENTS, AND THE NEXT YEAR WE'RE GOING TO LOOK AT SALARIES TO MAKE SURE THAT THOSE SALARIES ARE UP.

AND WE JUST STAY IN THAT ROTATION TO ENSURE THAT WE NEVER HAVE AN OPPORTUNITY.

WHEN WE'RE 50% BEHIND, I MEAN, WHEN WE FIRST GOT HERE, WE WERE IN THE 40TH PERCENTILE.

SO JUST GETTING US TO THE 50TH PERCENTILE WAS OVER $300,000 THAT YEAR JUST TO GET US TO THE 50TH.

THAT'S WHY WE DIDN'T JUMP FROM THE 40TH THROUGH THE 80TH.

WE NEEDED TO BRING THIS IN OVER TIME.

AND THAT'S WHAT I TALK TO THE FIREFIGHTERS ABOUT IS YOU'VE GOT TO GIVE US SOME TIME TO GET THERE.

WE'RE A YOUNG CITY WHO IS DEVELOPING.

SO AS OUR DEVELOPMENT INCREASES AND THE CASH STARTS COMING IN THE DOOR, THEN WE CAN START DOING THESE KINDS OF THINGS TO GET OUR SALARIES.

CHIEF, IS THIS WHAT YOU WANT? OR DID WADE TALK INTO SOMETHING LESS THAN WHAT YOU WANT? YOU CAN TELL US ON THE SIDE.

BECAUSE WE'RE GOING TO HOLD YOU ACCOUNTABLE FOR KEEPING THE FIREFIGHTERS THERE AND THIS BEING THE RIGHT PLAN AND THE RIGHT AMOUNT OF MONEY, THE RIGHT STEP PLAN, BECAUSE YOU OWN IT.

AND IF SOMEBODY ELSE HAS SOLD IT TO YOU, THAT'S DIFFERENT THAN YOU OWN IT.

NO, WE CAME UP WITH THIS.

SO WHEN I SAY WE, THE FIRE DEPARTMENT, WE HAD SPECIFICALLY A COMPENSATION COMMITTEE, WHICH IN...

INCLUDED A CAPTAIN, A DRIVER, A FIREFIGHTER, I THINK TWO FIREFIGHTERS, AND IT WAS THEM IN PARTNERSHIP WITH ADMINISTRATION WORKING ON WHAT DO WE WANT, AND THEN WE PRESENTED IT TO TOWN MANAGEMENT, INCLUDING SANDY AND WADE, AND THEY SAID, WE THINK THAT'LL BE EFFECTIVE.

AND SO IT CAME FROM US, AND THEY WERE SO KIND AS TO LISTEN TO US.

SO THAT'S WHERE WE'RE AT.

WE CAN'T DO WITHOUT POLICE OFFICERS, FIREFIGHTERS, AND TEACHERS.

WITHOUT THEM, SOCIETY DOESN'T SURVIVE, RIGHT? WE BELIEVE THIS WILL BE A HIGHLY COMPETITIVE PLAN THAT WE CAN RETAIN PEOPLE.

EXPENDABLE.

AND RECRUIT NEW PERSONNEL THAT ARE CURRENTLY VACANT.

SO WE THINK WE'RE GOING TO BE IN THE RIGHT SPOT, AND I'D LOVE TO REPORT THAT TO YOU IN THE FUTURE.

I MEAN, CHIEF, WE KNOW A LOT OF YOUR GUYS, RIGHT? WE SEE THEM.

THEY COME TO THE FOOTBALL GAMES AND STUFF.

THIS IS HOPEFULLY YOU GUYS WILL PASS THIS.

WE WANT THEM TO HANG AROUND.

WE WANT THEM TO BE HAPPY.

IT IS ABOUT ECONOMICS.

THEY'RE YOUNG.

THEY'RE HAVING KIDS.

I CAN'T SAY ENOUGH GOOD THINGS ABOUT THEM.

I MEAN, THEY'RE A HIGHLY TRAINED GROUP, LOTS OF SKILLS.

AND THEN I'VE SAID IT BEFORE, BUT WE'RE ONE OF THE ONLY DEPARTMENTS IN THE REGION THAT REQUIRE HIGHER EDUCATION.

SO THAT'S PRETTY SPECIAL TO ME BECAUSE IT'S NEAR AND DEAR TO MY HEART BECAUSE I THINK THIS IS AN

[01:30:01]

EDUCATION-BASED COMMUNITY BECAUSE WE DO HAVE THE ACADEMY.

WE HAVE DELOITTE UNIVERSITY.

WE HAVE SCHWAB WITH TRAINING GROUND.

I THINK THE FIRE DEPARTMENT CAN ADOPT THAT SAME PHILOSOPHY.

AND I THINK THAT SHOULD HOLD SOME WEIGHT.

I DO TOO.

SO WE'RE DOING ALL THE THINGS ANY OTHER FIRE DEPARTMENT DOES, BUT ALSO HAVE HIGHER EDUCATION REQUIREMENTS.

I THINK THAT MATTERS.

ANY OTHER QUESTIONS? I THINK WE HAVE THIS LATER ON THE AGENDA.

SINCE THIS IS A WORK SESSION, WE CAN'T TAKE ANY ACTION, BUT YOU DO HAVE AN ACTION ITEM ON THE AGENDA AT THE END OF THE MEETING.

IT DID EXCELLENT WORK

[G.2. Discussion of Salary Percentiles for Employee Positions]

ON THIS.

ALL RIGHT, THE NEXT PIECE OF THE WORK SESSION IS REALLY JUST AN INQUIRY OF COUNSEL.

SO WE TALKED ABOUT THE FIRE DEPARTMENT PAY.

ONE OF THE THINGS THAT I WOULD LOVE TO GET TO AS THE MOST IMPORTANT THINGS THAT WE DO UP HERE, HONESTLY, TO ME HAS ALWAYS BEEN MEETING STRATEGIC GOALS, RIGHT, AND TAKING CARE OF YOUR PEOPLE.

YEP.

BECAUSE YOU CAN'T DO ONE WITHOUT THE OTHER.

AND AGREE MORE.

SO PART OF THAT IS BEING COMPETITIVE ALL OVER THE PLACE, RIGHT? SO IN DFW MARKET, RIGHT, WHEN YOU LOOK AT AREA CITIES, WHAT YOU SEE IS FIRE DEPARTMENTS AND POLICE DEPARTMENTS ARE GENERALLY PAID AT A HIGHER PERCENTILE THAN REGULAR UNSWORN PERSONNEL.

SO WE'RE NOT ASKING THAT THE ENTIRE TOWN MOVE TO AN 80TH PERCENTILE.

I DON'T WANT TO SCARE EVERYBODY THAT THIS IS GOING TO BE A HUGE YEAR FOR RAISES.

THAT'S NOT EXACTLY WHAT WE'RE SAYING.

BUT WHAT I AM SAYING IS THAT SHOWING VALUE TO OUR EMPLOYEES IS IMPORTANT, RIGHT? AND WHAT WE'RE REALLY LOOKING FOR IS UNDERSTANDING WHERE COUNCIL FEELS THAT VALUE NEEDS TO BE LAID AS WELL.

IF WE NEED TO BE AT THE 65TH PERCENTILE OR THE 70TH OR 75TH PERCENTILE, WHEREVER WE DECIDE WE WANT TO BE, IT'S SOMETHING THAT I WANT TO BE ABLE TO ENSURE THAT WE'RE GETTING GOOD CANDIDATES AS WELL.

WE DON'T HAVE AS MUCH OF A TURNOVER PROBLEM.

ON THE TOWN SIDE AS YOU HAD ON THE FIRE DEPARTMENT SIDE.

AND THAT'S BECAUSE OUR SALARIES ARE A LITTLE BIT MORE COMPETITIVE IN THAT AREA BECAUSE WHEN WE MOVED TO THE 50TH PERCENTILE, WE WERE A LOT CLOSER.

IT WAS 50TH PERCENTILE PLUS 5% THE LAST TIME WE MOVED.

AND IT WAS A LOT CLOSER TO BEING COMPETITIVE WITH AREA CITIES BECAUSE THEY'RE NOT QUITE AS HIGH AS, LIKE I SAID, THE PUBLIC SERVICE ASPECT.

BUT I DO WANT TO MAKE SURE THAT WE ARE GETTING GOOD CANDIDATES IN, AND THAT'S WHERE WE'RE HURTING MORE THAN ANYTHING ELSE.

THE MAJORITY OF THE CANDIDATES THAT WE'VE HIRED, THAT I'VE HIRED IN THE LAST TWO YEARS THAT I'VE BEEN HERE, WE'RE HAVING TO HIRE THEM AT THE MID OR ABOVE THE MID ON THE SALARY SCALE.

AND THAT'S PEOPLE THAT I NORMALLY WOULD NOT BRING IN AT THAT LEVEL THAT HAVE SOME EXPERIENCE, BUT MAYBE THEY DON'T HAVE 15 OR 20 YEARS EXPERIENCE TO BE HIRED IN AT THE MID LEVEL.

SO THAT JUST TELLS ME RIGHT THERE THAT OUR SALARIES ARE ASKEW A LITTLE BIT OF WHERE WE WANT TO BE, AND WE WANT TO HIRE IN THE BEST PEOPLE THAT WE POSSIBLY CAN TO SERVE OUR CITIZENS OF WESTLAKE.

AND TO ENSURE THAT OUR EFFICIENCIES ARE AS STRONG AS THEY CAN BE BECAUSE WE ARE A SMALL CITY WHO NEEDS TO NOT HAVE A NEWBIE AT EVERY SINGLE DESK, BUT ACTUALLY HAS SOME EXPERIENCE AND WE CAN GET THESE THINGS DONE.

SO REALLY WHAT I'M THINKING ABOUT IS AS WE ROLL INTO THIS BUDGET SEASON IS A CONVERSATION WITH THIS COUNCIL TO SAY, WHERE DO WE WANT TO SIT AND WHAT KIND OF INFORMATION DO YOU WANT US TO BRING FORWARD SO WE CAN MAKE THAT DECISION? OBVIOUSLY, WE'RE GOING TO LOOK AT TURNOVER RATES.

SO WE'RE GOING TO HAVE THAT INFORMATION READY FOR YOU FOR ATTRITION STATISTICS.

BUT WE'RE ALSO GOING TO DO SOME OTHER THINGS.

SO WE'RE GOING TO DO SALARY SURVEYS OF ALL OF OUR POSITIONS, JUST LIKE WE DID FOR THE FIRE DEPARTMENT.

WE HAVE EXIT INTERVIEW INFORMATION THAT WE'LL BE SHARING.

AND THEN ANOTHER BIG THING IS, LIKE I SAID, CULTURE MATTERS.

SO THIS YEAR BEFORE WE FINISH OUT THE BUDGET PROCESS, WE'RE GOING TO DO THE GALLUP EMPLOYEE ENGAGEMENT SURVEY WITH ALL OF OUR EMPLOYEES TO REALLY UNDERSTAND WHERE WE SIT AS A CULTURE SO THAT WE CAN MAKE THIS STEP IN THE RIGHT DIRECTION AND ENSURE THAT THIS CAN'T BE 100% ABOUT PAY.

IT'S GOT TO BE ABOUT CULTURE AND PAY, RIGHT? WE HAVE TO PAY PEOPLE THE AMOUNT OF MONEY IT TAKES TO RAISE A FAMILY TODAY.

BUT THEN WE ALSO WANT TO ENSURE THAT CULTURE IS THE RIGHT CULTURE HERE THAT PEOPLE WANT TO BE IN WESTLAKE.

THAT'S JUST AS IMPORTANT AS ANYTHING ELSE.

SO WE'RE GOING TO BRING THAT INFORMATION TO COUNCIL.

THE QUESTION I HAVE FOR COUNCIL AT THIS MEETING IS, IS THERE ANYTHING ELSE THAT YOU WOULD WANT US TO DIG INTO IN ORDER FOR COUNCIL TO MAKE A DECISION ON WHERE WE WOULD LIKE TO SIT IN A PERCENTILE RANGE WITH OUR COMPARISON CITIES? I JUST NEED TO MAKE SURE THAT YOU'RE PLANNING FOR THE GROWTH OF THE TOWN.

AND THE ASSOCIATED POSITIONAL GROWTH THAT'S GOING TO OCCUR WITH TOWN STAFF TO MEET THE NEEDS.

BECAUSE AT SOME POINT, INSTEAD OF OUTSOURCING ENGINEERING OR SOMETHING, WE'RE GOING TO NEED A TOWN ENGINEER.

[01:35:01]

INSTEAD OF OUTSOURCING, WE'RE GOING TO NEED IT IN THE TOWN GOVERNMENT.

SO YOUR PLAN NEEDS TO TAKE INTO CONSIDERATION WHEN WE'RE GOING TO TRANSITION FROM CONTRACTED SERVICES TO INTERNAL EMPLOYEES.

AND THEN ARE YOU ABLE TO HIRE THE QUALITY OF THE TALENT THAT YOU NEED? WE CAN VOTE ON ANY RIDICULOUS PAY PLAN THERE IS, RIGHT? BUT IF YOU'RE NOT GETTING THE QUALITY TALENT THAT YOU NEED FOR IT, THEN WE'RE JUST FOOLING OURSELVES, RIGHT? SO THE KEY IS YOU TELLING US WHAT IT'S GOING TO TAKE FOR YOUR QUALITY.

THAT'S A BIG PIECE OF MY ROLE TOO, RIGHT, IS UNDERSTANDING HOW TO HIRE PEOPLE.

WE NEED TO BE SUCCESSFUL IN OUR HIRING PROCESSES.

AND JASON BEING OVER DEVELOPMENT, HE AND I TALK ABOUT THIS ALMOST ON A DAILY BASIS WHERE WE'RE TALKING ABOUT, YOU KNOW, THE FUTURE OF WESTLAKE AND WHAT DOES OUR STAFF NEED TO LOOK LIKE.

WE DON'T WANT TO GET SO BIG OR SWELL SO LARGE BECAUSE OF THE CURRENT DEVELOPMENT THAT WE'RE GOING TO BE LAYING OFF PEOPLE IN FIVE YEARS BECAUSE THE DEVELOPMENT HAS SLOWED AND WE DON'T NEED AS MANY PEOPLE AS WE NEEDED BEFORE.

SO WE'RE TRYING TO BE SMART ABOUT THIS AND MAKE SURE THAT ANY POSITIONS THAT ARE ADDED, WHICH I DON'T THINK WE'RE GOING TO ADD ANY NEW POSITIONS IN THIS COMING YEAR.

IF WE DO, IT WOULD PROBABLY JUST BE IN THE PUBLIC WORKS REALM BECAUSE THOSE GUYS ARE WORKING THEIR TAILS OFF DAY AND NIGHT.

BUT IN OUR OTHER AREAS, WE'RE PRETTY SOLID RIGHT NOW.

AND I THINK THAT WE ARE STAFFED APPROPRIATELY FOR THE AMOUNT OF WORK THAT WE'RE DOING.

SO THAT'S SOMETHING THAT WE'RE ALWAYS LOOKING AT AS WELL TO MAKE SURE WE'RE NOT OVERSTAFFED.

BUT I DO WANT US TO BE THINKING THROUGH.

IT'S LIKE, OKAY, I WANT TO SHOW VALUE TO THE PEOPLE THAT ARE HERE.

HOW DO WE MAKE SURE THAT THE CULTURE IS ACCURATE, THE CULTURE IS WHAT IT NEEDS TO BE, AND THAT THE PAYMENT IS THAT WAY TOO.

PERSONNEL, WE ALL KNOW PERSONNEL IS ALMOST 80% OR A LITTLE OVER 80% OF OUR BUDGET, RIGHT? I'M NOT GOING TO LIE.

SO IF I KNOW WHAT MY PERSONNEL NUMBER IS GOING TO BE EVERY YEAR BECAUSE THIS COUNCIL HAS DECIDED YOU'RE GOING TO BE AT THE 70TH PERCENTILE, FOR INSTANCE, THEN I KNOW WHERE A LARGE CHUNK OF THAT MONEY IS GOING TO HAVE TO GO EVERY SINGLE YEAR, AND THEN I CAN BUILD A BUDGET TO ENSURE THAT WE'RE MEETING THOSE STRATEGIC GOALS ON WHAT'S LEFT.

JUST TO JUMP ON WHAT TODD SAID, I THINK YOU SAID IT TOO.

MAY I? YEAH, PLEASE.

I DON'T REMEMBER IN THE STRATEGIC PLAN THAT WE TALKED ABOUT THE ORGANIZATION OF THE FUTURE.

SO I THINK IT'S SOMETHING THAT YOU NEED TO START THINKING ABOUT.

WHAT DOES THE ORGANIZATION CHART LOOK LIKE THREE TO FIVE YEARS FROM NOW? HOW DO WE BUILD TO THAT? ALSO, I THINK PART OF THAT COULD BE OUTSOURCING.

THERE MIGHT BE SOME THINGS THAT YOU'D WANT TO OUTSOURCE THAT YOU'RE DOING NOW INTERNALLY.

AND THE THIRD THING, AND YOU MENTIONED IT WITH RESPECT TO THE FIREFIGHTERS, THAT'S BENEFITS.

SO IS THE PLAN TO LOOK AT BENEFITS EVERY OTHER YEAR LIKE YOU'RE DOING WITH THE FIRE? YES, SIR.

WE DO THAT ACROSS THE BOARD, NOT JUST THE FIRE DEPARTMENT.

WE DO IT EVERYWHERE.

SO WE'RE GOING TO BE DOING BENEFITS EVERY OTHER YEAR AND THE SALARY SURVEYS EVERY OTHER YEAR.

WAY TWO THINGS, AND I KNOW WE TALKED ABOUT IT.

JASON AND I TALKED ABOUT THIS THE OTHER DAY, AND THIS IS KIND OF ON ME.

I WANT YOU GUYS TO TURN INTO A METRIC-DRIVEN ORGANIZATION, RIGHT? I WANT TO KNOW EVERYTHING.

WHEN A PERMIT COMES IN, WHAT'S THE TIME FRAME, HOW LONG YOU HAVE IT, HOW LONG TO GET OUT.

WHEN ACCOUNTS PAYABLE COMES IN, WE HAVE PEOPLE WITH THOSE SKILLS UP HERE WHO KNOW HOW TO DO THAT.

BUT WE HAVE TO GET THERE BECAUSE I'VE BEEN TALKING ABOUT THIS FOR A WHILE, RIGHT? WE HAVE A LOT OF STUFF GOING ON.

AND THE OTHER THING IS THE EXPERIENCE THAT A LOT OF THE PEOPLE HAVE UP HERE IS WHEN YOU LOOK AT ORGANIZATION, YOU'RE TOP 20, YOU'RE MIDDLE 70, AND YOU'RE BOTTOM 10.

AND I, AS A YOUNG MANAGER, I HATED THAT.

BUT WHEN YOU REALLY DO IT AND YOU'RE HONEST, IT KIND OF FALLS OUT THAT WAY.

BUT IT'S, YOU KNOW, THE MIDDLE 70 IS YOUR KEY PLAYERS, YOUR TOP 20.

AND THE BOTTOM 10, YOU EITHER MANAGE THEM UP OR OUT.

SO, I DO WOULD LOVE, IF YOU GUYS AGREE, TO START THINKING ABOUT ORGANIZATIONS LIKE THAT.

AND KELLY'S PROBABLY THE SAME WAY.

BUT WE'VE GOT TO GET TO THAT METRIC ORGANIZATION BECAUSE YOU REALLY CAN'T, YOU KNOW, IF YOU CAN'T MEASURE IT, YOU CAN'T REALLY MANAGE IT.

SO WE HAVE TO, AND I WANT TO, I THINK ABOUT JASON, YOU, YOUNG GUY, THESE TOOLBOXES YOU CAN LEARN FROM THE CORPORATE SIDE, PUT IT IN THE MUNICIPALITY, WILL BE HUGE, JUST HUGE HOW TO MANAGE THIS.

SO WE ARE CURRENTLY UNDERWAY WITH THAT.

WE'VE BEEN A LITTLE BIT SLOWED BECAUSE OF SOME OF THE DEVELOPMENT ISSUES THAT WE'VE HAD.

THERE'S A LOT OF THINGS THAT ARE GOING ON.

BUT WE'VE BEEN WORKING HARD OVER THE LAST SEVERAL MONTHS, REALLY SIX MONTHS, SEVEN MONTHS, DEVELOPING MEASURES WITHIN OUR STRATEGIC PLAN.

SO THE STRATEGIC PLAN THAT WE HAVE OUTLINED TODAY, EVERY DEPARTMENT HAS COME FORWARD WITH MEASURES FOR EVERY SINGLE ONE OF THOSE, EVERY AREA THAT THEY TOUCH.

SO IN THE ADMINISTRATION DEPARTMENT, FOR INSTANCE, I'VE GOT ABOUT 12 MEASURES THAT I'M LOOKING AT OVER THE NEXT FIVE YEARS TO ENSURE THAT I'M HITTING THOSE THINGS.

WE'RE GOING TO GET THAT DOCUMENT FINISHED ALONG WITH A PUBLIC-FACING DASHBOARD SO THAT EVERYBODY CAN SEE HOW WE'RE DOING, JUST US.

I TOLD JASON I'M GOING TO DROP OFF ONE OF MY MONTHLY MANAGEMENT BOOKS WHEN I WORK AND JUST HOW WE VIEWED ON THE MORTGAGE SIDE, HOW WE VIEWED ALL THE STUFF, THE THROUGHPUT, THE TIMING, CYCLE TIMES, COST, ALL THAT.

AND SEE IF YOU CAN EQUATE IT TO THE MENTALITY.

BUT THAT WOULD BE A GREAT

[01:40:01]

ANSWER.

I'LL OFFER THIS.

TAKE IT OR LEAVE IT.

THAT SOUNDED TERRIBLE.

I DON'T MEAN IT THAT WAY.

IF YOU WANT HELP IN DEVELOPING THOSE, COUNT ON US.

YEAH, ABSOLUTELY.

COUNT ON ONE OR TWO OR THREE OR FIVE OF US.

ABSOLUTELY.

BECAUSE WE'VE ALL BEEN THROUGH THIS.

YEAH, THAT'S RIGHT.

AND WHILE WE DON'T KNOW WHAT YOUR METRICS SHOULD BE, WE KNOW WHAT METRICS SHOULD LOOK LIKE IN ORDER FOR US TO UNDERSTAND WHAT YOUR BUSINESS IS.

AND FOR YOU TO BE ABLE TO MANAGE YOUR BUSINESS BETTER.

YES, SIR, AND I WILL SAY PROBABLY THE MOST DIFFICULT THING HAS BEEN PREDICTIVE ANALYTICS, RIGHT? SO WE'RE WORKING REAL HARD ON PREDICTIVE ANALYTICS TO ENSURE THAT WE'RE NOT JUST SEEING WHERE WE SIT TODAY, BUT WE'RE UNDERSTANDING WHAT THE DECISIONS WE'RE MAKING TODAY ARE GOING TO AFFECT TOMORROW.

SO THERE'S GOING TO BE A PERCENTAGE OF THOSE MEASURES THAT WILL BE PREDICTIVE ANALYTICS IN EVERY SINGLE DEPARTMENT.

SO THAT'S A BIG PIECE OF WHERE WE'RE PUSHING.

BUT I KNOW THERE'S A WEALTH OF KNOWLEDGE UP HERE ON THIS BOARD.

AND I WOULD LOVE TO PICK THE BRAINS OF EVERY SINGLE ONE OF YOU AS WE'RE GOING THROUGH THIS PROCESS AND SIT DOWN AND REALLY TALK THROUGH IT.

SO I'LL BE REACHING OUT.

PERFECT.

YOU CAN START OFF BY PUSHING DOWN TO EVERY SINGLE DEPARTMENT FUNCTION THAT YOU HAVE THAT EVERY ONE OF THEM HAS TO HAVE THEIR PERSONAL TOP TEN KPIS THAT APPLY TO SUCCESS IN THEIR ROLES.

AND JUST FORCE THEM TO MAKE THEM.

AND YOU'RE GOING TO FIND OUT THAT 50% OF THEM ARE NOT ACCURATE, RIGHT? AND THEN YOU JUST CHANGE THEM.

SO THAT'S JUST SOMETHING I WANT US TO BE THINKING THROUGH AS WE GO THROUGH THIS.

SO WE'RE GOING

[G.3. Discussion of 5-Year Capital Improvements Plan (CIP)]

TO START GATHERING THIS DATA, AND THEN REALLY WE'LL BRING THIS BACK TO COUNCIL AS PART OF THE BUDGET PROCESS AND GO INTO IT A LITTLE MORE DEEPLY.

SO WE TALKED ABOUT MEETING THE STRATEGIC GOALS.

WE TALKED ABOUT TAKING CARE OF EMPLOYEES.

THE OTHER BIG PIECE OF OUR BUDGET IS THE CIP, RIGHT, HUGE PIECE OF OUR BUDGET OVER THE NEXT FIVE YEARS.

AS WE ARE A YOUNG, GROWING CITY, RIGHT, WE'VE GOT A LOT OF INFRASTRUCTURE THAT'S GOT TO BE TAKEN CARE OF OVER THE NEXT FIVE YEARS.

SO WITH THAT, JASON OLIVER, WE HIRED OUR NEW TOWN PROJECT MANAGER.

HE'S DONE AN AMAZING JOB FOR US ALREADY WORKING WITH DR. RITCHIE AND THE SCHOOL EXPANSION.

SO WE'RE REALLY PROUD OF THE WORK HE'S DOING AND HE ACTUALLY TACKLED THIS PROJECT FOR ME WITH CIP WORKING WITH EACH OF THE DIRECTORS.

I WANT HIM TO COME UP AND TALK A LITTLE BIT ABOUT THAT PROCESS.

HEY JASON.

COUNCILOR, MAYOR.

HI.

GOOD TO FINALLY STAND IN FRONT OF YOU ALL.

SO ACTUALLY, THIS FIVE-YEAR, WHICH IS NOW REALLY A SIX-YEAR PLAN, WAS RELATIVELY SIMPLE.

IT WAS CREATED LAST YEAR BEFORE I WAS HERE, AND I WAS TASKED THIS YEAR WITH SITTING DOWN WITH EACH DIRECTOR, GOING THROUGH EVERY LINE ITEM, SEEING WHAT IT IS, DO WE NEED IT, WHY DO WE NEED IT, WHAT IS IT CALLED.

REALLY WHAT I LEARNED WAS OVER TIME, MAYBE WHAT WAS MOST IMPORTANT IS WHEN DO WE REALLY NEED IT.

AND SOME OF THE EPIPHANIES THAT CAME OUT OF THAT WERE...

YOU KNOW EQUIPMENT OBVIOUSLY WE HAVE LIFESPANS WE HAVE EXPECTED LIFESPANS WE HAVE THINGS THAT ARE OLDER NEWER I COULD GO ON FOREVER BUT THAT'S WHY IT'S IN THE DOCUMENT UM IN THE END REALLY TRULY THE DOCUMENT HAS HARDLY CHANGED AT ALL BECAUSE IT WAS DONE REALLY WELL FORTUNATELY WE'VE HAD A COUPLE THINGS MOVE BACK A YEAR A COUPLE THINGS BEFORE A YEAR BUT NOTHING THAT THAT'S REALLY CHANGED MONETARILY THE ONE THING THAT WE HAVE ADDED OF COURSE IS A FIRE STATION ON THE WEST END OF TOWN AND YOU'LL SEE THAT IF YOU HAVE THIS DOCUMENT IN FRONT OF YOU THE GREEN BLOCKS ARE THE ONLY CHANGES FROM LAST YEAR'S DOCUMENT.

AND SO UP HERE UNDER FACILITIES, 2027, WE ARE HOLDING A NUMBER FOR LAND ACQUISITION.

THE NEXT YEAR IS AN APPROXIMATE NUMBER FOR DESIGN OF THE FACILITY, WHICH IS PROBABLY PRETTY ACCURATE AT THIS POINT.

AND THEN A FEW YEARS DOWN THE ROAD, WE'RE SHOWING AN APPROXIMATE COST OF THE FACILITY.

AND REALLY, WHEN THAT FACILITY OCCURS HAS A LOT TO DO WITH WHEN IT'S NEEDED.

SO WE'RE HOLDING KIND OF FORWARD.

AND LET'S JUST...

WE JUST HAD X AMOUNT OF RESIDENTS JUST WENT CRAZY TALKING ABOUT ANOTHER FIRE DEPARTMENT, RIGHT? BUT BY RULE AND BY PROCESS AND BY GROWTH, WE HAVE TO HAVE IT IN PLACE.

AND YOU'LL TALK ABOUT THAT IN DETAIL, BUT I KNOW THAT WILL BE...

YEAH, FIRE STATION.

IT DOESN'T HAVE TO LOOK LIKE THE EXISTING ONE.

IT WILL NOT.

IT'S LIKE A DIRTY STATION.

IT ABSOLUTELY WILL NOT LOOK LIKE THE STATION.

ALTHOUGH THIS IS THE MOST BEAUTIFUL FIRE STATION I'VE EVER SEEN IN MY LIFE.

BUT JUST LIKE THERE'S SOME SENSITIVITIES IN OUR TOWN THAT YOU'LL LEARN.

OH, YEAH, YEAH.

THAT'S ONE OF THEM.

BUT WE UNDERSTAND THERE'S RULES AND PROCESSES TO PUT JUST ANOTHER KIND OF SUBSTATION MORE THAN A FIRE STATION.

AND RIGHT NOW WE'RE SHOWING IT IN ABOUT.

2031, BUT THAT'S GOING TO BE DEFINED BY GROWTH ON THAT END OF TOWN.

OTHERWISE, MOST OF THE CIP REALLY, LIKE I SAID, IT'S KIND OF STUCK WHERE IT WAS FROM LAST YEAR.

THERE'S A FEW NUMBERS THAT HAVE DROPPED JUST BECAUSE SOME EQUIPMENT HAS BEEN PURCHASED.

WE'VE LEARNED RADIOS, THINGS LIKE THAT.

WE COULD CHANGE SPECIFICATIONS.

THERE'S NOT A LOT MORE DETAIL IN THERE OTHER THAN WHAT'S RIGHT THERE IN FRONT OF YOU.

[01:45:01]

CAN YOU JUST GIVE A BIT OF DETAIL ON THE CONSERVABLE EXPENSE FOR VEHICLES AND EQUIPMENT NEXT YEAR THAT'S NEW? I'M SORRY, I DIDN'T HEAR THE QUESTION.

VEHICLES AND EQUIPMENT EXPENSE, $2.4 MILLION NEXT YEAR.

THAT'S A NEW NUMBER.

FOR 2026? FOR 2027.

IN 2027? ACTUALLY, IF YOU LOOK AT THE BREAKDOWN, THAT DROPPED SLIGHTLY IS THE REASON IT'S GREEN.

AND I BELIEVE THERE WAS SOME EQUIPMENT THAT WAS NO LONGER NEEDED.

I THINK IT'S REAL CLOSE TO WHATEVER LAST YEAR.

IF YOU'RE LOOKING AT THAT 2027 NUMBER.

AND JUST TO EASE MINDS AGAIN, RIGHT, WHEN YOU'RE LOOKING AT A FIRE STATION, WE DON'T BUILD FIRE STATIONS UNTIL WE NEED FIRE STATIONS.

BUT YOU ALSO HAVE TO BE ABLE TO PLAN OUT AN EXPENSE THAT'S GOING TO BE, YOU KNOW, $10 MILLION TO BUILD A FIRE STATION, YOU KNOW, AND COMPARED TO A I THINK WE PAID $19 MILLION FOR THE LAST FIRE STATION THAT WAS 2018, WHICH IS PROBABLY $24 MILLION NOW.

SO AS YOU CAN TELL FROM THE NUMBER THAT WE'RE SPEAKING ABOUT, IT'S NOT GOING TO BE ANYTHING LIKE THE FIRE STATION WE HAVE.

IT IS A TRUE SUBSTATION THAT WOULD HOUSE THE PEOPLE THAT ARE NEEDED TO GIVE YOU A RESPONSE TIME WITHIN SIX MINUTES TO ANYWHERE ON THAT WEST SIDE OF TOWN.

THAT'S THE BIGGEST THING IS YOU HAVE TO BE ABLE TO MAKE THOSE TIMES.

AS YOU CAN IMAGINE, ANYBODY THAT DOESN'T BREATHE FOR FIVE OR SIX MINUTES, YOU'RE NOT GOING TO GET BACK, RIGHT? SO YOU'RE NOT GOING TO GET THOSE FOLKS BACK.

SO WE NEED THOSE RESPONSE TIMES TO BE IN THE RIGHT AREA WHEN THE GROWTH HAPPENS, AND WE'RE MAKING SURE THAT THOSE THINGS ARE BEING ACCURATELY FOCUSED.

EVERYTHING WE DO IS ABOUT COMMUNICATION AND INFORMING OUR RESIDENTS AND STUFF, SO WE GET IN FRONT OF THE CITY.

STUFF WITH THAT CONVERSATION.

AND THANK YOU VERY MUCH FOR THE HARD WORK THAT YOU DID ON THIS, JASON.

JASON DID AN EXCELLENT JOB OF SITTING DOWN AND REALLY GOING THROUGH THE DETAILS OF THIS PLAN WITH ALL OF OUR DIRECTORS.

SO WHEN WE TALK ABOUT HOW DO WE FUND THIS, SO THAT'S KIND OF THE NEXT BIG QUESTION.

YOU'RE LOOKING AT THAT SHEET AND YOU'RE SEEING ABOUT $58 MILLION WORTH OF NEEDS OVER THE NEXT FIVE TO SIX YEARS.

WHAT WE'VE BEEN DOING OVER THE LAST YOU TWO YEARS THAT I'VE BEEN HERE AND REALLY THE PREVIOUS YEAR, YOU'VE SEEN A TREMENDOUS AMOUNT OF FUND BALANCE AND THAT IS FOR THIS PURPOSE.

WE KNOW THAT AS THIS CITY GROWS, YOU'RE GOING TO HAVE TO HAVE ANOTHER WATER PUMP STATION.

YOU'RE GOING TO NEED ANOTHER WATER TOWER.

YOU'RE GOING TO NEED TO ADD WATER LINES.

YOU'RE GOING TO HAVE TO START REPLACING THOSE THINGS.

THE COST OF THAT GOES UP PRETTY HIGH AND WE DON'T NEED TO HAVE $58 MILLION WORTH OF DEBT ASSOCIATED WITH THIS TOWN.

EVEN THOUGH WE HONESTLY HAVE THE CAP FOR IT AND I'M GOING TO BRING UP TED CHRISTENSEN, OUR FINANCIAL ADVISOR TO TALK THROUGH SOME OF THAT AND SOME OF THE S&P REQUIREMENTS BECAUSE THE LAST THING I WANT TO DO IS US LOSE OUR AAA BOND RATING THROUGH ALL THIS AND IT COSTS US MORE MONEY TO BORROW.

THAT'S EXACTLY RIGHT.

IT WOULD PROBABLY BE THE LAST THING I DO HERE IN WESTLAKE IF WE LOST THE AAA BOND RATING.

BUT I'M GLAD WE'RE GOING TO TALK ABOUT THAT BECAUSE WE KIND OF HAD SOME SIDE CONVERSATIONS AND PUT SOME SCHEDULES TOGETHER ON THE DEBT.

THERE'S JUST THERE'S JUST NEED TO EDUCATE OUR RESIDENTS TO MAKE SURE WE'RE TALKING ABOUT IT.

TED, THANKS FOR BEING HERE, TALKING ABOUT THE RIGHT WAY.

BUT WHEN YOU LOOK AT THE STATISTICS, WE'RE IN VERY GOOD SHAPE TODAY.

AND THEN YOU LOOK ABOUT WHAT WE HAVE POTENTIALLY COMING AS FAR AS GENERATING REVENUE, OUR RATIOS OF DEBT TO RAISE VALUE OR HOWEVER WE LOOK AT IT, TED'S GOING TO TELL US TO LOOK AT IT.

WE'RE REALLY GOOD.

AND IF YOU LOOK AT OUR NUMBERS TODAY, OF UNASSIGNED FUND BALANCE.

SO THAT DOES NOT COUNT OUR 180 DAYS THAT BY POLICY WE'RE REQUIRED TO KEEP.

A FUND RESERVE JUST IN CASE SOMETHING TERRIBLE HAPPENS, RIGHT, OUR RAINY DAY FUND.

WE'VE GOT ABOUT A LITTLE OVER $20 MILLION ABOVE THE 180 DAYS.

SO WE'RE DOING VERY WELL ON UNASSIGNED FUND BALANCE.

SO I NEED ANOTHER $10 MILLION, WHICH I NEED TO DELIVER YOU GUYS OVER THE NEXT THREE YEARS, RIGHT, IN A BUDGET THAT MAKES SENSE AND PUTS $2 MILLION BACK A YEAR, $3 MILLION BACK A YEAR TO THAT FUND BALANCE IN ORDER TO BE ABLE TO PAY FOR THIS WITH 50% CASH.

AND THAT'S THE GOAL, RIGHT? THE GOAL IS TO PAY FOR ALL THIS 50% CASH AND NOT HAVE TO BORROW MORE THAN HALF OF THAT $58 MILLION.

BUILDING A FORTRESS BALANCE SHEET, AS WE WOULD CALL IT.

SO WITH THAT, THANK YOU, JASON.

I'D LIKE TO ASK TED CHRISTIAN TO COME UP, OUR FINANCIAL ADVISOR.

HE'S BEEN WITH US FOR SEVERAL YEARS NOW AND DONE EXCELLENT WORK.

HE ALWAYS ANSWERS THE PHONE EVERY TIME CASEY OR I CALL, WHICH IS A MIRACLE IN ITSELF.

[01:50:01]

YOU KNOW, MY OVERRIDING GOAL, I'M A RESIDENT OF WESTLAKE.

I HAVE THE SAME, MAINTAIN THAT AAA RATING.

SO DOING A REFUNDING BOND RIGHT NOW FOR THE CITY OF SANGER DURING THEIR AA PLUS RATED CREDIT.

I WAS ABLE TO ASK THE GUYS ON OUR RATING CALL TO STAY ON WITH ME.

I GAVE THEM A HYPOTHETICAL AAA CITY.

THIS IS HOW MUCH FUND BALANCE THEY HAVE, ET CETERA, ET CETERA.

THEY'RE VERY CAUTIOUS ABOUT SHARING HOW THEY RATE.

CREDITS.

IT'S AMAZING.

THEY PROTECT IT LIKE IT'S GOLD AT FORT KNOX.

BUT THEY DID, THEY SHARED SOME OF THEIR DATA WITH ME AND I'VE WORKED WITH CASEY AND WE ACTUALLY LOOKED AT IT.

YOU'RE REALLY IN GOOD SHAPE.

WE AS A CITY ARE REALLY, REALLY IN GOOD SHAPE.

ONE METRIC YOU JUST CAN'T OVERCOME IS WE HAVE A LOW POPULATION VERSUS A VERY HIGH ASSESSED VALUE.

SO IF YOU GO DEBT PER RESIDENT, WE'RE NEVER GOING TO WIN THAT ARGUMENT.

WELL, WE WILL WIN THAT ARGUMENT BECAUSE THEY HAVE ONE OF THEIR CRITERIA SAYING IF YOU HAVE AN EXTRAORDINARY SOMETHING TO OFFSET THAT, WHICH WE DO WITH OUR LLOYD AND SCHWAB AND FIDEL.

YOU DO A DEBT VERSUS DAYTIME POPULATION.

YEAH, WE ARE DAYTIME POPULATION.

WE HAVE REASONS TO OVERCOME THAT, AND THAT'S WHY WE ARE AAA.

WE HAVE A TON OF CASH, AND THAT'S THE ONE THING I REALLY HARPED ON WAS HOW MUCH CAN WE DRAW DOWN AND STILL BE IN THAT AAA CATEGORY? ME.

WOULDN'T COME OUT AND ADMIT IT, BUT KIND OF AROUND ABOUT, I THINK IT'S 180 DAYS.

IF YOU'RE 180 DAYS OR BETTER, YOU'RE IN GREAT SHAPE.

SO DOING THE 50% DEBT TO 50% CASH AS YOU WORK THROUGH THESE PROJECTS, WE'RE GOING TO BE IN REALLY GOOD SHAPE.

SO CURRENTLY, AND THERE'S ANOTHER METRIC THE MAYOR, I EXCHANGED SOME EMAILS ABOUT, AAA CITIES, 2% TO 4% OF YOUR ASSESSED VALUE.

IS ABOUT THE RIGHT AMOUNT OF DEBT.

TRY NOT TO HAVE MORE THAN 4%.

WE ARE CURRENTLY, INCLUDING DEBT THAT'S SUPPORTED BY WATER AND SEWER REVENUE, WE'RE 1.8%.

SO TAX SUPPORTED, WE'RE ONLY AT 0.43%.

SO WHAT YOU'RE SAYING IS THE MAYOR AND WADE ARE DOING A GOOD JOB MANAGING OUR TOWN'S FINANCIALS? YES.

NO, Y'ALL ARE.

BUT I WILL TELL YOU, AND THANK YOU, TED, BECAUSE I COULDN'T SLEEP ONE NIGHT THINKING ABOUT OUR DEBT.

YOU GET ON, YOU TRY TO FIND THE DATA.

IT IS ALL OVER THE PLACE.

YEAH, IT IS.

I LOVE IT.

WE'RE ON A WEEKEND.

WE'RE EXCHANGING EMAILS ABOUT THIS.

I'M THINKING, MAN, I'M NOT THE ONLY ONE THAT LIKES THIS STUFF.

BUT SAY THAT AGAIN.

I THINK ONE OF MY MEN WAS 1.2, BUT IT'S 2 TO 4.

WE'RE IN REALLY, REALLY GOOD SHAPE.

WE'RE IN REALLY GOOD SHAPE.

SO IF YOU TAKE, INCLUDING ALL YOUR DEBT THAT'S WATER AND SEWER SUPPORTED, YOU COULD INCREASE YOUR DEBT BY 50%.

WE'RE CURRENTLY AT ABOUT $52 MILLION TOTAL DEBT.

YOU COULD INCREASE IT BY $26 MILLION, AND THAT WOULD PUT US AT 2.7%.

WE'RE STILL WELL BUILT IN THAT RANGE, ON THE LOW END OF THE 2% TO 4% RANGE.

AND THAT WOULD STILL ONLY DRAW YOUR CASH DOWN TO 300 DAYS OR SOMETHING.

SO WE'RE IN A GREAT SITUATION WITH THAT.

SO THAT'S KIND OF THE OVERRIDING GOAL.

CASEY'S DOING A FANTASTIC JOB.

SHE'S GOING TO TALK TO YOU MORE ABOUT YOUR AUDIT.

THAT'S THE BIGGEST CHALLENGE CITIES ARE HAVING RIGHT NOW IS GETTING THEIR AUDITS DONE WITHIN 180 DAYS.

THE STATE HAS COME OUT AND SAID, IF YOU DON'T DO THAT, YOU CAN'T RAISE YOUR TAXES EVEN $1 THE FOLLOWING YEAR.

I HAD TWO OF OUR CITY CLIENTS TODAY EMAIL US AND SAY, WE CAN'T GET IT DONE.

IT'S MARCH 30TH.

THEY CAN'T GET IT DONE.

THEIR AUDITORS CAN'T DO IT.

CASEY'S BEEN...

BANGING ON YOUR AUDITOR TO GET IT DONE, AND IT LOOKS LIKE IT IS.

ARE WE GOOD, CASEY? ARE WE GOOD ON THE AUDIT? SHE'S GOING TO TALK ABOUT IT.

THERE IS A CHALLENGE THAT SHE'S GOING TO NEED YOU GUYS TO ADDRESS.

WE ARE GOOD ON THE AUDIT.

SORRY, CASEY.

CASEY WILL TELL YOU.

I EMAILED HER.

I SAID, CASEY, I DON'T CARE WHAT YOU HAVE GOT TO GET.

I MEAN, THAT'S JUST A HUGE THING.

SO SHE'S DEALT REALLY WELL WITH THE CHALLENGES.

THERE'S AN OUTSIDE CHALLENGE THAT YOU GUYS ARE PART OF.

THEY WERE HERE EARLIER TONIGHT.

YEAH, WE GOT A DISCUSSION.

IT'S GOING TO HAVE TO BE DEALT WITH.

IT MAKES IT HARD FOR HER.

SO OVERALL, THAT'S WHERE YOU ARE DEBT-WISE.

THE NUMBER ONE CHALLENGE YOU'RE GOING TO HAVE IS THE STATE OF TEXAS, THE LEGISLATURE AND THE GOVERNOR, IS THEY DON'T LIKE YOU.

I'M SAYING THAT ON VIDEO.

NO, THEY DON'T.

THEY DON'T WANT YOU TO ISSUE ANY DEBT.

THEY DON'T WANT YOU TO RAISE ANOTHER DIME OF TAXES.

NOW, TO BE CLEAR, YOU'RE NOT TALKING ABOUT

[01:55:02]

WESTLAKE PER SE.

YOU'RE TALKING ABOUT SMALL TOWNS AND GIRLS.

I'M TALKING ABOUT CITIES ACROSS THE STATE.

YOU'RE TALKING ABOUT THE WHOLE STATE.

I'M TALKING HOUSTON AND DALLAS ALL THE WAY DOWN TO WESTLAKE.

SO THEY DON'T WANT YOU TO ISSUE ONE MORE DOLLAR OF TAXES OR TO DEBT OR ANY OTHER RAISE YOUR TAXES AT ALL.

ONE OF GOVERNOR ABBOTT'S PRIMARY THINGS HE PUT IN HIS BULLET POINTS FOR NEXT LEGISLATIVE SESSION IS THAT TO RAISE EVEN ONE MORE DOLLAR OF TAXES, IT HAS TO PASS BY A VOTE OF YOUR RESIDENTS AT 66%.

I'VE BEEN DOING THIS FOR 20-SOME-ODD YEARS.

I'M NOT SURE WE'VE HAD, BUT ONE OR TWO MAYBE BOND ELECTIONS THAT PASSED BY 67%.

I'VE NEVER SEEN IT.

WELL, I WOULD SAY THAT.

IT'S RARE THAT A MAYOR THAT HAS AN OPPONENT GETS 66%, MUCH LESS.

IT'S JUST THEY HAVE THE WRONG TARGET.

SO YOU'RE GOING TO HAVE TO 2027 IS RIGHT AROUND THE CORNER.

SO THIS TIME NEXT YEAR, THEY'RE GOING TO BE TRYING TO PRESS SOMETHING THROUGH THAT'S GOING TO IMPACT YOU.

I TOLD TED AND I TALKED A LITTLE BIT.

ONE OF THE THINGS THAT'S REAL INTERESTING, GOING THROUGH AN ELECTION PROCESS RIGHT NOW, YOU GET SURVEYS TO FIND OUT.

FILL OUT TO GET ENDORSEMENTS BY WHOEVER.

AND THEY ALL START OUT TALKING ABOUT PROPERTY TAX AND TALKING ABOUT TAKING THE POWER AWAY FROM THE CITY AND THE TOWN.

I AM ADAMANTLY AGAINST THAT.

WE ARE WORKING FOR HOPEFULLY OUR SENATOR AND OUR CONGRESSMAN FOR THE STATE OF TEXAS THAT THEY GET ELECTED, BUT I'M OFFENDED THAT THEY THINK AUSTIN CAN RUN OUR TOWN BETTER THAN WE CAN.

I'M A LOCAL CONTROL GUY.

I MEAN, IF DALLAS WANTS TO TAX THEIR BRAINS OUT.

THAT'S GOOD FOR DALLAS.

BUT WESTLAKE SHOULD BE ABLE TO MAKE THEIR OWN DECISIONS.

THAT'S WHY WE ELECTED ALL OF YOU.

WELL, AND YOU CAN'T PAINT EVERY MUNICIPALITY WITH THE SAME BRUSH IS WHAT THEY'RE TRYING TO DO.

SO IN ANY CASE, YOU'RE IN REALLY GOOD SHAPE.

MY RECOMMENDATION IS A CONTROLLED DRAWDOWN ON THE CASH WITH DEBT.

IN A PERFECT WORLD, IF YOU HAVE STUFF YOU CAN DO THIS YEAR, I'D PROBABLY TRY AND GET SOMETHING DONE IN 2026.

THE FISCAL YEAR ENDS SEPTEMBER 30TH, SO IT COULD ACTUALLY BE TOWARDS THE END OF THE YEAR.

$10 MILLION OR LESS IN A CALENDAR YEAR IS GREAT.

WHAT'S CALLED BANK QUALIFIED.

THAT GETS YOU A LITTLE BIT BETTER RATE.

AND THEN LOOK AGAIN FOR 27.

SO I DON'T WANT YOU TO BORROW BEFORE YOU NEED IT, BUT BY THE SAME TOKEN.

BUT LIKE WE PREPPED FOR THIS YEAR.

LOOKING AT THE CHALLENGES AHEAD, I THINK IT'S SOMETHING THAT YOU ALL SHOULD BE LOOKING AT.

YOU HAVE A GOOD CAPITAL IMPROVEMENT PLAN.

WAIT IN CASE YOU'RE ALL OVER THIS.

WE'LL BE READY TO GO WHEN YOU'RE READY.

HAPPY TO ANSWER ANY QUESTIONS.

THE WHOLE PROPERTY TAX DEBATE THAT THEY'RE TALKING ABOUT IN AUSTIN, ABOUT DOING AWAY WITH PROPERTY TAX, WELL, HOW DOES ANYTHING SURVIVE WITH THAT? WELL, MY IMPRESSION IS THEY WANT TO GET RID OF SCHOOL TAXES.

THAT'S KIND OF WHERE I SEE THE FOCUS.

BUT IT DOES SUCH A FINE JOB.

I THINK IT'S FOCUSED ON SCHOOL TAXES.

NO, IT DOESN'T.

AND SO, YOU KNOW, IN WHICH I THINK I PAY KELLER ISD TAXES.

HONESTLY, I'M PRETTY SURE THAT'S WHO WE PAY OVER THERE.

YOU KNOW, THEY'RE FAIRLY HIGH.

IT'S LOWER THAN IT WAS BEFORE, BUT WHEN YOUR AVS GO UP EVERY YEAR, THE BIGGEST PART OF YOUR PROPERTY TAX BILL IS YOUR SCHOOL TAX PORTION.

THAT'S WHERE THE PRESSURE IS COMING ON THE LEGISLATURE TO DEAL WITH THAT.

SORRY? YOU PAY TO SOUTH LAKE? YEAH, YEAH.

IT DEPENDS WHERE YOU LIVE IN TOWN.

IT DEPENDS ON WHAT.

WE HAVE KELLER.

YEAH, CARROLL IS LOWER THAN KELLER.

IT IS LOWER.

SO, YEAH.

SO THE GOOD NEWS IS.

WESTLAKE KIDS CAN GO TO CAROL ISD NOW.

SO THAT'S WHAT YOU CHOOSE TO DO.

SOME OF MY NEIGHBORS ACTUALLY DO.

THEY CAN, YEAH, OF COURSE.

TO YOUR POINT, WE'VE GOT TO BE ON OUR GAME BECAUSE THE NICE THING ABOUT OUR SCHOOL THAT WE COMPLAIN ABOUT ALL THE TIME IS WE GET NO SCHOOL PROPERTY TAX.

BUT IF THEY REDUCE THAT, TODD SENT ME AN ARTICLE.

KELLY, I THINK I SENT IT TO YOU.

THE VOUCHER PROGRAM, THEY WERE SHOOTING FOR $70,000.

THEY GOT OVER $200,000.

GOOD LUCK WITH THAT.

AGAIN, I'M NOT A...

FAN OF THAT BECAUSE I DON'T KNOW HOW THEY'RE GOING TO MANAGE IT, HOW THEY'RE GOING TO CONTROL SCHOOL AND EVERYTHING.

THEY'RE GOING TO THROW MORE MONEY AT IT AND TAKE IT AWAY.

IN THE STATE OF TEXAS AS MUCH AS THEY BRAG, WE'RE STILL AT THE LOWER END PER STUDENT FUNDING IN THIS COUNTRY.

I WIND UP WE HAVE A REALLY GOOD MODEL WHEN IT'S ALL SAID AND DONE BUT WE HAVE TO BE ENGAGED WITH WADE KELLY WITH AUSTIN WE GOT TO KEEP THOSE AND ALL ALL THE COUNCILS THAT WE GOT TO BE ENGAGED WITH OUR REPRESENTATIVES WE HANG AROUND TO THE BREAK IF ANYBODY THAT ALWAYS GOOD SEEING YOU THANK YOU ALL RIGHT SO THAT'S A PEAK AT OUR CIP OVER THE NEXT FIVE TO SIX YEARS I DON'T EXPECT THAT TO CHANGE WE'VE DONE THE HARD WORK ALREADY ON THIS BUDGET SO THAT IS

[G.4. Discussion regarding current and future budgeted Town Subsidy for Westlake Academy]

LIKELY GOING TO BE YOUR CIP LIST THAT YOU'RE GOING TO SEE IN THE BUDGET THAT'S PRESENTED.

SO MOVING ON, THE NEXT IS THE SUBSIDY FOR WESTLAKE ACADEMY.

WE'VE DONE A GREAT JOB OF GROWING HERE IN WESTLAKE AND GROWING THE RIGHT WAY.

SO REALLY WE'RE EXPECTING TO SEE QUITE A BIT MORE REVENUE COMING IN OVER THE NEXT THREE TO FIVE YEARS, SOMETHING WE'RE GOING TO TALK ABOUT

[02:00:01]

IN AN EXECUTIVE SESSION.

WE'LL SPELL A LITTLE MORE OF THAT OUT FOR YOU GUYS, BUT WE HAVE SOME DEALS.

IN THE WORKS CURRENTLY THAT WILL GREATLY AFFECT...

I CAN'T BELIEVE YOU SAID THAT WITH A STRAIGHT FACE.

HEY, WE'RE GETTING BETTER AT THIS, MAYOR.

BUT WE HAVE SOME DEALS IN PLACE THAT ARE GOING TO MAKE A REALLY BIG DIFFERENCE IN THE AMOUNT OF REVENUE THAT WE SEE ON AN ANNUAL BASIS, AND IT'S COMING WITHIN THE NEXT TWO TO THREE YEARS.

IT'S GOING TO TAKE THAT LONG TO GET IT BUILT, BUT WE'RE GOING TO SEE SOMETHING REALLY SPECTACULAR FOR WESTLAKE.

WITH THAT BEING SAID, I KNOW WHEN WE CAME OUT WITH THE ORIGINAL STRATEGIC PLAN, WE HAD SOME PREVIOUS YEARS BEFORE THE STRATEGIC PLAN CAME OUT WHERE SOME DECISIONS WERE MADE THAT REALLY DREW DOWN THE CITY'S ABILITY TO GO OUT FOR CIP BECAUSE WE HAD A LOT OF INCREASE OF NEEDED REVENUE AT THE ACADEMY, AND WE JUST DIDN'T KNOW HOW TO DO IT ANY OTHER WAY.

SO, UM...

WE HAD A STRATEGIC PLAN IN PLACE THAT STEPPED DOWN THE SUBSIDY THAT GOES TO THE ACADEMY EVERY SINGLE YEAR.

RIGHT NOW, THIS LAST YEAR, WE HAD $1.5 MILLION IN A SUBSIDY THAT GOES TO THE ACADEMY.

WE WERE SCHEDULED TO DROP THAT DOWN TO $1.25 THIS YEAR AND THEN $1 MILLION THE YEAR AFTER THAT.

I'M COMING TO THIS COUNCIL LOOKING FOR SOME DIRECTION TO MOVE AWAY FROM THAT IN THE STRATEGIC PLAN AND JUST TO LEAVE THE ACADEMY SUBSIDY AT $1.5.

UNTIL WE GET TO THE END OF THAT 2031 THAT'S ON THEIR CIP LIST TODAY, BECAUSE THEN WE KNOW THAT WE'LL HAVE ALL THE DEBT TAKEN CARE OF THAT WE NEED TO.

WE'LL HAVE A LOT MORE REVENUES COMING IN THE DOOR, AND THEN WE CAN REASSESS REALLY THE ACADEMY NEEDS AS THEY'RE GROWING AS WELL.

BUT THE LAST THING I WANT TO DO IS STIFLE THE ACADEMY AND THEIR ABILITY TO DO A GOOD JOB BY NOT GIVING THEM THE MONEY THAT THEY NEED TO DO TO DO THEIR WORK.

SO I'M SUGGESTING THAT WE STAY AT THE...

$1.5 MILLION UNTIL THE END OF 2031, AND AT THAT POINT WE WOULD READDRESS THIS ISSUE.

OBVIOUSLY, WE DO THIS ON AN ANNUAL BASIS, SO IF WE NEED TO READDRESS IT SOONER THAN THAT, IT NEEDS TO INCREASE SOONER THAN THAT FOR SOMETHING SPECIAL OR SOME ECONOMIC CHANGE THAT WE DIDN'T FORESEE, THEN WE HAVE THAT ABILITY.

BUT WITH THE STRATEGIC PLAN GIVING US SPECIFIC DIRECTION ON THIS, I WOULD NEED COUNCIL DIRECTION TO MOVE AWAY FROM THAT STRATEGIC PLAN.

SO.

IT'S NOT A VOTE, BUT IT IS SOMETHING THAT I NEED TO HEAR FROM THIS COUNCIL.

YEAH, TO THINK ABOUT TONIGHT AND REALLY GIVE ME SOME FEEDBACK EVEN TONIGHT BECAUSE WE'RE GOING TO BE STARTING THE ACADEMY'S BUDGET HERE PRETTY SOON IF THEY HAVEN'T ALREADY STARTED ALREADY.

I THINK THEY'VE GOT A KICKOFF MEETING COMING IN THE NEXT TWO WEEKS.

SO WE WANT TO MAKE SURE THAT WE UNDERSTAND WHAT WE'RE GOING TO BE PUTTING OVER THERE SO KELLY UNDERSTANDS HOW MUCH REVENUE SHE HAS TO WORK WITH ON HER BUDGET.

SO WITH THAT, I'LL JUST ANSWER ANY QUESTIONS THAT YOU HAVE.

SO, I MEAN, WADE AND I TALKED BRIEFLY ABOUT THIS.

SO ONE, I FULLY SUPPORT.

I DON'T VOTE.

I FULLY SUPPORT ON THE 1.5 GOING FORWARD.

BUT HERE'S WHAT I WOULD LIKE US TO DO, WHATEVER THE TIME FRAME.

YOU KNOW, I'M GOING TO YOU GUYS ARE GOING TO GET MAD AGAIN, BUT I THINK ABOUT THE HOLDING COMPANY THING.

I GOT TWO SUBSIDIARIES.

I GOT THE TOWN AND I HAVE THE SCHOOL.

I'M DISPELLING THE SCHOOL.

AND I THINK THE SCHOOL SHOULD SHARE IN THE UPSIDE OF THE REVENUE AS WE HAVE THINGS COMING IN.

SO WHAT I WOULD LOVE COUNCIL TO THINK ABOUT FOR THE LONG TERM, SO WHEN WE'RE ALL GONE AND OUR REPLACEMENTS ARE GONE, I DO NOT WANT TO FALL BACK WHAT'S HAPPENED AT THE SCHOOL THAT I'VE SEEN PREVIOUS ADMINISTRATIONS DO.

I WANT TO MAKE SURE THEY HAVE FUNDING IN PLACE.

SO I WOULD LOVE FOR YOU GUYS TO FIGURE OUT, IS IT A PERCENT OF REVENUE? IS IT PENNIES OF SALES TAX OR WHATEVER IT IS? SO THE ACADEMY DOES HAVE UPSIDE WHEN THE TOWN GROWS, AND THEY DON'T HAVE TO WAIT FOR SOMEONE TO DOLL IT OUT.

BUT THEY DO HAVE UPSIDE IN THAT GROWTH, AND I THINK THERE'S SOME WAYS TO FIGURE THAT OUT IF THAT MAKES SENSE.

I HAVE A COMMENT HERE.

THAT'S ALL RIGHT.

I WOULD SAY, WELL, WELL, YEAH, I WOULD, LIKE, YEAH, I, I WOULD, YOU KNOW, IS IT, 5% OF REVENUE, 8% OF REVENUE, SOMETHING LIKE THAT, DEPENDING ON HOW YOU COUNT REVENUE.

IS IT SALES TAX? I DON'T WANT TO SOLVE IT HERE.

I JUST WANT YOU ALL TO THINK ABOUT HOW DO WE LEAVE THE SCHOOL FINANCES IN A BETTER PLACE THAN WE HAVE.

KELLY'S DOING AN AMAZING JOB.

WE UNDERSTAND THE SCHOOL FINANCES BETTER THAN WE EVER HAVE.

DID SOME WORK IN AUSTIN.

WE HAVE MONEY COMING IN.

BUT I DON'T WANT THEM TO BE SCRAPING FOR EVERY PENNY.

IT WOULD BE NICE TO DO SOME THINGS WHERE THEY START TO BUILD AN ENDOWMENT, THEY START TO HAVE SOME MONEY AND SOME FLEXIBILITY.

I HAVE A COMMENT HERE.

THE TOWN HAS OBVIOUSLY GROWN A LOT OVER THE LAST 20 YEARS, AND THAT'S A LOT DUE TO ORGANIZATIONS COMING IN, TAKING ADVANTAGE OF THE TOWN'S RESOURCES IN A GOOD WAY, RIGHT? OUR NATURAL RESOURCES, OUR INFRASTRUCTURE RESOURCES, ET CETERA.

WE HAVE HISTORICALLY BEEN VERY

[02:05:02]

GENEROUS WITH INCENTIVES TO BRING THOSE FOLKS IN.

I THINK THERE IS A HUGE OPPORTUNITY FOR US AS A TOWN TO ENCOURAGE MORE.

GIVING CORPORATE SOCIAL RESPONSIBILITY DIRECTED TOWARDS THE ACADEMY BECAUSE AS WE ALL KNOW, WE HAVE TRIED MANY TIMES, MANY DIFFERENT WAYS TO GET OUR LARGE, VERY WELL ENDOWED CORPORATE NEIGHBORS TO PARTICIPATE IN SOME FUNDING ACTIVITY FOR THE SCHOOL AS SMALL AS A SCOREBOARD THAT WE COULDN'T EVEN GET FUNDED OR EVEN PARTIALLY FUNDED THROUGH SOME OF THESE LARGER ORGANIZATIONS.

SO AS WE ARE NEGOTIATING THESE NEW DEALS FOR NEW STRUCTURES FOR THESE CAMPUSES, FOR NEW POTENTIAL BUSINESSES COMING IN, ONE OF THE THINGS THAT WE SHOULD GO INTO EVERY NEGOTIATION WITH IS, ALL RIGHT, NOW YOU NEED A SWEETENER FOR THE ACADEMY, RIGHT? THIS ISN'T JUST A RELATIONSHIP WITH THE TOWN BECAUSE YOU ARE GOING TO SEND YOUR KIDS TO THIS SCHOOL, RIGHT? AND SO WE WANT TO MAKE SURE THAT THIS ACADEMY, WHICH IS REALLY BENEFITING THE TOWN AND YOUR PRESENCE IN THE TOWN, IT'S ATTRACTING EMPLOYEES FOR YOU WHO WANT TO BE PART OF THIS COMMUNITY.

YOU NEED TO BE PROVIDING FUNDING FOR THAT AS WELL.

I COULDN'T AGREE MORE, AND I CAN'T GET INTO DETAIL.

WADE AND I HAD A VERY INTERESTING MEETING AT JASON YESTERDAY WITH A RESIDENT ABOUT DOING SOME THINGS, A DIFFERENT WAY TO APPROACH OUR CORPORATE PARTNERS AND STUFF.

WE REALLY HAVEN'T DONE A GREAT JOB THERE, RIGHT? AND I THINK THAT'S GOING TO BE SOME EXCITING THINGS THAT WE'LL PUT IN.

YEAH, JUST TO BE CLEAR, THE REASON WHY I BRING THIS UP IS THAT NO ONE FROM THE SCHOOL IS IN NEGOTIATIONS WITH THESE ORGANIZATIONS THAT ARE COMING INTO THE TOWN.

IF THEY WERE...

I BETTER BELIEVE THAT THEY WOULD BE ADVOCATING FOR SOME BENEFIT FOR THE SCHOOL AS WELL, ESPECIALLY CONSIDERING THAT THAT WILL THEN IMPACT THE ENROLLMENT IN THE SCHOOL BECAUSE EMPLOYEES OF THESE ORGANIZATIONS.

WELL, YOU KNOW, WE HAD, WHEN I GOT FIRST ELECTED TO COUNCIL, WE HAD A CONSULTING GROUP.

THEY LIKED THIS IDEA, BUT IT WAS GO TO OUR THREE CORPORATE PARTNERS AND SAY YOU CAN ALL HAVE 20 KIDS.

ACADEMY, BUT YOU HAVE TO PAY X. NOW, WHERE'S JANET? SHE JUST FLIPPED OVER IN HER CHAIR.

SORRY.

WE'D HAVE TO GET ALL THAT TAKEN CARE OF THROUGH CHARTER WORK, BUT SOMEHOW TO ENDEAR THEM.

AND, YOU KNOW, WE HAD A COUPLE OTHER IDEAS, AND NOBODY WANTED TO ENTERTAIN IT THEN.

BUT I DO THINK THERE ARE SOME CREATIVE WAYS THAT WE CAN DO THAT.

AND, YOU KNOW, WE'VE HAD, WE'LL TALK IN EXECUTIVE SESSION, WE HAD A REALLY INTERESTING CONVERSATION WITH ONE OF THESE COMPANIES THAT WILL BE VERY CIVIC-MINDED, I THINK.

BUT I DO THINK YOU KNOW, I'VE GOT TO THANK THE PREVIOUS ADMINISTRATIONS, THE $10,000 A LOT FOR WESTLAKE ACADEMY, WHOEVER PUT THAT IN.

THAT WAS A NICE TOUCH AND, YOU KNOW, HELPS FUND THE SCHOOL AND THEN GOES FROM THERE.

BUT I JUST WANT US TO THINK, IS THIS, WE'VE BEEN TOGETHER, YOU KNOW, OUR TERMS ARE, THIS ADMINISTRATION HAS BEEN TOGETHER FOR TWO YEARS FOR THE MOST PART.

AS WE GO INTO THE NEXT PHASE, HOW DO WE REALLY TIGHTEN THINGS UP AND REALLY GET FORMALITY AROUND? WE'RE DOING GREAT ON THE FINANCES.

WE'RE DOING GREAT ON DEVELOPMENT.

REALLY TAKE THAT NEXT STEP AND MAKE OUR TOWN.

AND I AGREE.

AND I THINK OUR STAFF AGREES AS WELL.

I THINK THERE'S BETTER WAYS THAT WE CAN SUBSIDIZE THE ACADEMY IN THE FUTURE.

THE THING THAT I WANT TO CAUTION COUNCIL ABOUT IS THE CIP PLAN.

BECAUSE WHEN DEVELOPMENT COMES IN, THERE IS A REQUIREMENT THAT WE DON'T AFFECT THE WATER, THE SEWER, THE STREETS, AND ALL THOSE THINGS.

THAT IS WHY THOSE THINGS ARE IN PLACE.

THAT'S WHY WE PUT IMPACT FEES IN PLACE.

IT'S WHY A LOT OF THOSE DEALS ARE STRUCTURED IN THE WAY THEY ARE.

SO I AGREE, MR. DUANE.

I THINK THAT WE DO NEED TO MAKE SURE THAT WE'RE DOING THAT.

ACTUALLY, JASON, IN THE LAST COUPLE DEVELOPMENT DEALS WE'VE DONE, WE'RE INCREASING THAT ALLOTMENT TO THE ACADEMY FROM $10,000 TO $50,000.

SO THAT'S A LITTLE SOMETHING THAT WE'VE DONE ON EVERY RESIDENT THAT'S COMING IN, BUT WE NEED TO TAKE THAT FURTHER.

I WOULD PUSH HEAVILY TOWARDS IF WE'RE GOING TO DO SOMETHING AFTER THE 21 OR 31.

A TIME PERIOD ONCE INFRASTRUCTURE IS IN PLACE, I WOULD ADVOCATE FOR A A NUMBER OF CENTS OF PROPERTY TAX BECAUSE REALLY WE WANT TO ALL SWELL AND FEEL THE ECONOMIC EFFECTS TOGETHER, RIGHT? IF YOU PUT A FLOOR ON IT, IF YOU DO ANYTHING LIKE THAT, THAT'S EXACTLY RIGHT.

I MEAN, WHEN TIMES ARE GREAT, TIMES ARE GREAT, BUT WE ALL NEED TO BE ABLE TO SAY WHEN TIMES ARE BAD AND REVENUE DROPS, THEN WE ALL NEED TO CHANGE HOW WE DO OUR BUSINESSES, RIGHT, WHETHER IT'S FROM THE TOWN SIDE OR THE ACADEMY SIDE, AND I'M SURE KELLY WOULD AGREE.

WE CAN'T JUST GO WITH AN OPEN CHECKBOOK FOR EITHER ONE OF OUR ORGANIZATIONS, RIGHT? SO WE DO NEED TO BE MINDFUL OF THOSE THINGS, AND WE NEED TO BE MINDFUL THAT INFRASTRUCTURE HAS GOT TO BE IN PLACE SO THAT EVERY TIME YOU FLUSH A TOILET, WATER REMOVES THAT STUFF AWAY, RIGHT? THAT'S IMPORTANT.

EVERY TIME YOU TURN ON A SINK, YOU GET WATER.

WHAT'S THE NUMBER ONE THING FOR A MAYOR?

[02:10:01]

NO BOILED WATER NOTICES.

THAT'S EXACTLY WHAT I WAS GOING TO SAY, NO BOILED WATER NOTICES, RIGHT? AND WE'RE MOVING IN THAT DIRECTION.

WE'VE GOT SOME GREAT THINGS COMING.

AND I'M NOT WORRIED ABOUT LEAVING THIS AT THE $1.5 MILLION.

SO I'D LIKE TO AT LEAST GET SOME.

I THINK YOU NEED THAT.

YOU NEED A CONSENSUS FROM US AND KELLY FOR YOUR PREPARATION OF YOUR BUDGET THAT WE'RE COMFORTABLE WITH DOING THAT.

I MEAN, UNLESS ANYBODY HAS ANY DIFFERENT FEELINGS, I THINK WE SHOULD GIVE THEM THAT.

WE'RE ALLOWED TO DO THAT NOW.

YOU CAN GIVE DIRECTION.

THIS IS DIRECTIONAL.

I THINK THERE IS GUIDANCE.

AND, AGAIN, I JUST WANT TO, I THREW THAT OUT JUST TO BE THINKING ABOUT AS WE'RE THINKING ABOUT THE SCHOOL AND DEVELOPMENT.

YEAH, IT'S HOW ARE WE GOING TO DO THIS AND HOW DO WE KEEP KELLY AND HER TEAM DOING WHAT THEY'RE DOING.

THE ACADEMY IS SUCH A HUGE PIECE OF WHY PEOPLE COME TO WESTLAKE, RIGHT? SO WE WANT TO MAKE SURE THAT THE ACADEMY STAYS THE CROWN

[G.5. Discussion of Timing for Town of Westlake Audit]

JEWEL.

NO DOUBT.

WELL, I WILL TAKE ANY FEEDBACK FROM COUNCIL OVER THE NEXT SEVERAL WEEKS ON THAT SO THAT WE CAN GET THE ACADEMIES.

BUDGET STARTED.

KELLY CAN GET THAT ACADEMY'S BUDGET STARTED.

THE LAST PIECE THAT WE'RE GOING TO TALK ABOUT IN THE WORK SESSION IS ONLY TWO OR THREE MINUTES HERE, AND IT'S REALLY CATCHING UP ON WHERE THE AUDIT IS.

CASEY'S GOING TO COME FORWARD WITH THAT.

AND HE SPOILED IT FOR YOU, CASEY.

WE WILL MEET OUR LEGAL OBLIGATION WHEN WE FILE AUDITED FINANCIALS ON FRIDAY WITH THE TOWN SECRETARY.

YEAH, I'M SORRY.

WELL SAID.

SO JUST A LITTLE BACKGROUND ABOUT.

REALLY SOME KEY DIFFERENCES BETWEEN THE TOWN AND THE ACADEMY AUDIT AND THIS YEAR VERSUS ANY PRIOR YEAR FOR THE TOWN IN PARTICULAR.

SO WE ARE SUBJECT TO LOCAL GOVERNMENT CODE 103 THAT SAYS ALL CITIES IN THE STATE OF TEXAS HAVE TO HAVE AUDITED FINANCIAL STATEMENTS.

THE LAW HAS BEEN ON THE BOOKS FOR YEARS.

IT'S ALWAYS SAID 180 DAYS AFTER THE FISCAL YEAR END, WHICH IF YOU'RE LOOKING AT A CALENDAR IS GENERALLY THE 28TH OF MARCH EVERY SINGLE YEAR.

Y'ALL ARE ALSO FAMILIAR THAT WE HAVE NOT MET THAT DEADLINE FOR THE LAST SEVERAL YEARS, IN PART BECAUSE OF TURNOVER, BUT OUR PREVIOUS AUDITORS ALSO STRUGGLED WITH OUR HOUSING AUTHORITY.

AND SO THIS PAST YEAR AT THE STATE LEVEL, THERE WAS A NEW BILL THAT PASSED, SENATE BILL 1851, THAT SAYS NOW THERE'S TEETH BEHIND NOT MEETING THAT DEADLINE.

SO BEGINNING THIS YEAR, ANY...

CITY WITHIN THE STATE OF TEXAS THAT DOES NOT HAVE THEIR AUDITED FINANCIALS FILED WITH THE TOWN SECRETARY ON OR BEFORE THE 180TH DAY PAST THE FISCAL YEAR, THEY WILL BE LIMITED TO ADOPTING THE NO NEW REVENUE PROPERTY TAX RATE OR LOWER FOR THE UPCOMING FISCAL YEAR.

SO VERY LARGE CONSEQUENCES AND IT'S GOING TO HIT A LOT OF FOLKS.

IT'S ALSO SOMETHING THAT OUR LIEUTENANT GOVERNOR IS VERY PASSIONATE ABOUT.

HE SENT OUT LETTERS LAST YEAR JUST PUTTING EVERYBODY ON THEIR TOES.

SAYING, I'M GOING TO BE LOOKING AT THIS.

SO FOR US, THAT'S BEEN A HUGE STRUGGLE BECAUSE OF OUR COMPONENT UNIT.

SO WE, AS SMALL AS WE ARE, WE ARE INCREDIBLY COMPLICATED WHENEVER IT COMES TO OUR AUDIT.

WE HAVE MULTIPLE COMPONENT UNITS THAT ARE ALL LAYERED IN AND ARE ALL DONE BASED ON VERY SPECIFIC SCHEDULES.

SO THE TOWN AND THE ACADEMY DO NOT HAVE THE SAME FISCAL YEAR.

THE FOUNDATION IN THE ACADEMY DO, BUT OUR HOUSING AUTHORITY HAS A SEPARATE FISCAL YEAR FROM ALL THREE OF THOSE.

SO FOR TIMING PROCESS, WHAT NEEDS TO HAPPEN IS EVERY SINGLE YEAR, THE FOUNDATION NEEDS TO HAVE THEIR AUDITED FINANCIALS DONE FIRST SO THAT THOSE CAN BE REPORTED WITHIN THE ACADEMY'S FINANCIAL AUDIT THAT'S DUE TO TEA IN MID-NOVEMBER.

THEN THAT INFORMATION HAS TO BE ROLLED INTO THE TOWN'S AUDIT AS A COMPONENT UNIT, AS WELL AS TISHA AND THEIR TWO ENTITIES HAVING TO BE ROLLED UP INTO ONE AUDIT.

AND THEN PROVIDED TO THE CITY FOR OUR FINAL AUDIT.

SO WE JUST LIKE THINGS TO BE FUN AND COMPLICATED ALL AT THE SAME TIME.

A DEGREE OF DIFFICULTY.

AND SO ALL OF THAT HAPPENING IN A VERY, VERY CONDENSED TIME FRAME, TO MAKE YOU ALL AWARE.

TISHA, SO TEXAS STUDENT HOUSING AUTHORITY, THEY HAVE TWO LOCATIONS, AS TRACY MENTIONED TODAY, ONE IN DENTON AND ONE IN COLLEGE STATION.

THE COLLEGE STATION PROPERTY DID NOT GET THEIR FINAL AUDIT REPORT FROM OUR PREVIOUS AUDITORS UNTIL FEBRUARY 24TH.

AND SO IT IS NOT POSSIBLE TO CONDUCT A FULL SCOPE AUDIT AND ALL OF THE FINANCIAL STATEMENTS THAT ARE NEEDED WITHIN THE TIME FRAME FOR US.

TO MEET OUR 180-DAY MARK THIS FRIDAY.

SO WE WILL HAVE A DISCLAIMED OPINION, MEANING THAT BECAUSE THEY ARE NOT ABLE TO FULLY PERFORM THE AUDIT ON OUR COMPONENT UNIT, EVERYTHING ELSE IS ROSY AND GREAT, BUT THEY JUST HAVE TO MAKE A STATEMENT AS PART OF

[02:15:02]

THEIR OPINION THAT SAYS THEY WEREN'T ABLE TO FINISH THIS ONE PART.

IT IS NOT MATERIAL TO US BECAUSE WE...

ARE NOT ACTUALLY RESPONSIBLE FOR ANY OF TISHA'S FINANCIALS.

IT'S JUST GOING TO BE WEIRD.

DO WE, AND WADE, I KNOW WE TALKED ABOUT THIS, LIKE I HAVE SAT THROUGH A COUPLE OF THESE TEXTS THAT WENT TO THEIR BOARD MEETING.

I DO NOT UNDERSTAND HOW THEY'RE TIED INTO THE TOWN.

WHAT IF THEY DISSOLVE? WHAT HAPPENS? WHO OWNS THOSE PROPERTIES? BUT HOW DO WE GET THEM SEPARATED, THAT THE TOWN, THAT THEY DON'T HOLD UP AN AUDIT? CAN WE SAY A QUICK PRIMER ON THAT? LIKE, ONE MINUTE.

WHAT IS THEIR RELATIONSHIP? LEGALLY SPEAKING, WE CREATED A HOUSING AUTHORITY.

AND UNDER STATE LAW IN TEXAS, A GOVERNMENTAL ENTITY MUST BE THE FOUNDER AND YOU LEGALLY MUST APPOINT THEIR BOARD.

AS IS MAYOR BRADLEY THAT DID IT, WHO FOUNDED.

AND SO FOR AUDITING PURPOSES, THE FACT THAT WE CONTROL THEIR BOARD IS THE REASON THAT THEY ARE CONSIDERED A COMPONENT UNIT FOR OUR FINANCIALS.

WE CAN'T GET AROUND APPOINTING THEIR BOARD.

AND WHY IS THAT? IT'S IN THEIR CREATION DOCUMENTS.

DID THEY AMEND THOSE? NO, NOT THAT PORTION OF IT BECAUSE LEGALLY SPEAKING, THEY HAVE TO BE GOVERNED BY A BOARD SUCH AS COUNCIL.

IT HAS TO BE A GOVERNING BODY.

IT IS A GOVERNMENT.

SO WE'RE STUCK.

AND THE OTHER THING THAT WE WOULD HAVE TO DO, EVEN IF, SO LET'S SAY WE DID WANT TO GO DOWN THAT ROUTE.

YOU WOULD HAVE TO, WE APPOINT THEIR BOARD MEMBER.

YOU WOULD HAVE TO APPOINT BOARD MEMBERS THAT WANT TO DISSOLVE COMPLETELY THEIR DEBT BECAUSE WE CAN'T DISSOLVE THEM WHEN THEY HAVE ANY DEBT, AND THEY'VE GOT QUITE A BIT OF DEBT.

AND WE'VE GOT NO WAY UNLESS...

THE CURRENT BOARD MEMBERS ON TISHA AGREE NOT TO TAKE OUT ANY MORE DEBT.

WE JUST HEARD THEY NEED TO DO A PRETTY SIGNIFICANT REMODEL IN DENTON, WHICH WOULD CAUSE THEM TO GO OUT FOR MORE DEBT.

SO REALLY, THERE'S NO WAY FOR US TO GET OUT FROM UNDERNEATH THIS HOUSING AUTHORITY, BUT WE CAN WORK BETTER WITH THEIR BOARD AND TRY TO MAKE SURE THAT THE AUDITS ARE COMPLETED ON TIME.

SO THAT'S WHERE CASEY AND I ARE GOING TO FOCUS OUR ATTENTION IS REALLY TALKING TO MR. BRADLEY ABOUT THAT AND MAKING SURE THAT THEIR BOARD UNDERSTANDS.

I HAD SEVERAL CALLS WITH HIM OVER THE LAST TWO MONTHS SAYING, WE'VE GOT TO GET THIS THING COMPLETED AT TEXAS A&M.

THAT WAS THE ONLY PART OF THEIR AUDIT THAT WAS COMPLETED.

SO THEY WERE ARGUING BACK AND FORTH OVER LANGUAGE IN THE AUDIT DOCUMENT OVER SOME OWNERSHIP OF DEBT.

I MEAN, THAT WAS REALLY ALL IT WAS.

THEY HAD LITIGATION GOING ON.

IS THAT STILL GOING ON OR DID THAT GET SOLVED? NO, IT'S STILL GOING ON.

IT'S STILL GOING ON.

AND DO WE HAVE THEIR BALANCE SHEET? DO WE HAVE THEIR FINANCIALS? WE DO.

LIKE WHAT'S THEIR TOTAL ASSETS? I MEAN, WHAT'S THEIR...

I DON'T HAVE THAT ON THE TOP OF MY HEAD, BUT I CAN ABSOLUTELY SHARE.

I WOULD ASK JUST AS WE GET THROUGH SUMMER AT AN APPROPRIATE TIME, WE JUST NEED TO, EVERYBODY ON THE BOARD NEEDS TO UNDERSTAND THIS BETTER THAN WE DO.

THIS HAS HAPPENED THE FOUR YEARS I'VE BEEN AROUND.

THIS AUDIT'S HELD THINGS UP.

AND I DON'T UNDERSTAND, LIKE, DO WE HAVE ANY LIABILITY WITH WE HAVE ZERO LIABILITY WHEN IT COMES TO ANY OF THE DEBT ASSOCIATED WITH OR THE EXPENDITURES ASSOCIATED WITH THE HOUSING AUTHORITY.

WE KNOW THAT FOR A FACT.

BUT BECAUSE WE APPOINT THE BOARD AND BECAUSE THOSE HOUSING AUTHORITIES HAVE TO BE SET UP AND THE SYSTEM WAS SET UP, THEN WE WOULD HAVE TO DECIDE TO DISSOLVE THE HOUSING AUTHORITY ALTOGETHER, WHICH WOULD MEAN GET RID OF THE DEBT, DISSOLVE THE HOUSING AUTHORITY.

OUR BOARD WOULD HAVE TO DO THAT WITH THE BACKING.

I DON'T KNOW THAT WE, LOOK, IT DOES SOME GOOD, RIGHT? ABSOLUTELY.

WE'VE SEEN WHAT THEY DO FOR ONE SECOND ACADEMY STUDENTS AND ALL, BUT I JUST THINK WE NEED TO ALL CUMULATIVELY NEED TO UNDERSTAND IT A LITTLE BETTER, AND WE'VE GOT TO MANAGE THEM BETTER ON THESE AUDITS, AND WE'LL GO FROM THERE.

THAT'S WHERE OUR CONCENTRATION IS.

SO WE JUST WANTED TO MAKE SURE THAT EVERYBODY UNDERSTOOD THAT WE ARE GOING TO HAVE OUR AUDIT COMPLETED, BUT IT WILL BE A...

SO ON FRIDAY, WHAT EVERYBODY HERE IS USED TO SEEING IS WHAT WE CALL OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT, OR OUR ACFR.

WHAT WE'LL BE FILING ON FRIDAY IS OUR AUDITED FINANCIAL STATEMENTS.

SO IF YOU THINK ABOUT OUR ACTUAL ACFR, IT'S ABOUT 180 PAGES.

ALL THAT'S GOING TO BE MISSING FROM WHAT'S BEING FILED ON FRIDAY IS GOING TO BE AN INTRODUCTORY STATEMENT AND OUR STATISTICAL SECTION.

THAT'S IT.

SO ALL OF THE FINANCIAL SCHEDULES ARE STILL THERE.

THEY'RE STILL AUDITED.

WE'RE JUST NOT INCLUDING SOME OF THE NARRATIVE AT THE VERY BEGINNING SO THAT WE CAN COME BACK WHENEVER TISHA IS AUDITED, RELEASE A FULL ACFER TO REALLY MAKE THAT DEMARCATION BETWEEN OUR LEGAL OBLIGATION AND OUR SERVICE LEVEL OBLIGATION AND EXPLAIN THE DELAY.

AND IT'S IMMATERIAL, RIGHT, TO OUR OVERALL.

IF YOU LOOK AT ANY OF OUR FINANCIAL STATEMENTS, IT JUST KIND OF SITS ON THE END, AND WE HARDLY TALK ABOUT IT IN ANY OTHER PART

[02:20:01]

OF OUR DOCUMENT.

AND WE'VE ENSURED THAT THIS MEETS THE STATE REQUIREMENTS SO THAT WE WON'T.

OKAY, GOOD.

ANY QUESTIONS? CASEY, YOU ARE ABSOLUTELY POSITIVE THAT WE ARE IN COMPLIANCE WITH TWO PIECES.

CORRECT.

IN FACT, THE VAST MAJORITY OF ENTITIES THROUGHOUT THE STATE, THAT'S HOW THEY FILE.

AND ACFER IS ACTUALLY OVER AND ABOVE WHAT THE LEGAL TELLS US TO DO.

THANK YOU ALL SO MUCH.

ALL RIGHT, LET'S GO THROUGH THE...

DO YOU GUYS WANT TO TAKE A BREAK HERE? CAN WE...

IT'S 621.

CAN WE TAKE...

YOU WERE RIGHT, MICHAEL.

IT'S LONG.

621.

LET'S TAKE A FIVE-MINUTE BREAK.

THEN WE'LL GET BACK ON THE CONSENT AGENDA.

AREN'T YOU GLAD YOU CAME BACK FROM FLORIDA FOR THIS? YEAH, I...

[H. CONSENT AGENDA]

NO, YOU DIDN'T.

YES, I DID.

I KNOW.

[I.1. Hold a public hearing and discuss, consider and act to adopt Ordinance 1044 approving text amendments related to Sections 102-61 and 1-1 of the Unified Development Code by establishing and defining the land uses “hotel” and “motel”, by amending the land use schedule, and by establishing performance standards in a new Article X that is entitled “Supplemental Land Use Regulations”.]

I APPRECIATE IT.

WHERE? ANY OF OUR NETWORKS.

WELL, I THINK YOU'RE GOING TO HAVE TO GET...

I'LL ALSO BRING THE HARD COPY.

WELL, AND...

I HAVE A LOT OF OTHER...

YOU DON'T HAVE A PHONE, DON'T YOU? I DO.

I DO.

BUT NO ONE HAS THAT NUMBER.

I WILL BRING IT AT THE NEXT MEETING.

GOOD JOB, DAD.

I WILL NOT BE AT THE NEXT MEETING.

I HAVE TO BE...

I AIN'T DINNER.

WELL, NO, I GOT TO FIND DINNER.

I'M LIKE, AND THEN BACK HERE.

I LOVE THIS.

[J.1. Discuss, consider and act to Approve a Letter of Commitment to provide for temporary storm shelter accommodations for students, staff, and visitors associated with the Westlake Academy Arts & Sciences Building Expansion project.]

[J.2. Discuss, consider and act regarding Resolution 26-07 approving a construction contract with Sedalco Inc. for the WA Arts & Sciences Building Project in an amount not to exceed $6,700,000.]

[02:29:45]

ROGER THAT.

I'M OUT OF HERE.

WHAT? I'M GOOD, BUT I'D RATHER NOT BE.

WHAT DO YOU LIKE? OKAY, IT'S 6.30.

WE ARE BACK IN SESSION.

NEXT ON THE AGENDA, ITEM H IS A CONSENT AGENDA.

DOES ANYBODY HAVE ANYTHING THEY NEED TO PULL OUT OF THE CONSENT AGENDA? IF NOT, CAN I GET A MOTION TO APPROVE THE CONSENT AGENDA? CAN I GET A SECOND? SECOND.

[02:30:01]

YOU CAN TELL THEY'RE ON IT.

THEY'RE GOING.

OKAY, NEXT, PUBLIC HEARING CORRESPONDENT ACTION ITEM.

HOLD THE PUBLIC HEARING DISCUSSED.

CONSIDER AN ACT TO ADOPT ORDINANCE 1044, APPROVING TEXT AMENDMENTS RELATED TO SECTIONS

[J.3. Discuss, consider and act to adopt a Fire Department compensation step plan designed to position Westlake's firefighter salaries targeting the 80th percentile of the regional market.]

102-61 AND 1-1 OF THE UNITED DEVELOPMENT CODE, UNIFIED DEVELOPMENT CODE, BY ESTABLISHING AND DEFINING THE LAND USE AS HOTEL AND MOTEL BY MENDING THE LAND USE SCHEDULE AND BY ESTABLISHING PERFORMANCE STANDARDS IN A NEW ARTICLE X THAT IS ENTITLED SUPPLEMENTARY LAND USE REGULATION.

COLE, HOW ARE YOU, BUD? DOING WELL, THANK YOU.

GOOD EVENING, MAYOR, COUNCIL.

SO THIS REQUEST IS FOR TEXT AMENDMENTS RELATED TO THE USES FOR HOTEL AND MOTEL, AMENDING THE LAND USE SCHEDULE, AS WELL AS PROVIDING SOME PERFORMANCE STANDARDS FOR THE USES.

THE PURPOSE OF THE UNIFIED DEVELOPMENT CODE IS TO CREATE REGULATIONS FOR HOW THE TOWN DEVELOPS ITS LAND WITHIN TOWN LIMITS.

SOME CONSIDERATIONS, THE DRAFT TEXT AMENDMENTS...

AMENDING CLARIFIED THE DEFINITIONS FOR HOTEL AND MOTEL AND MAKE THEM SYNONYMOUS.

IT AMENDS THE LAND USE SCHEDULE TO REFLECT THIS CHANGE AND IT PROVIDES PERFORMANCE STANDARDS.

SOME HIGHLIGHTS OF THESE PERFORMANCE STANDARDS INCLUDE A MINIMUM NUMBER OF ROOMS, WHICH IS 150.

IT ALSO REQUIRES INTERIOR ACCESS.

THE BUILDING HEIGHT IS FOUR STORIES.

AMENITIES ARE REQUIRED AS WELL, SUCH AS A SPA, BAR, RESTAURANT, THINGS LIKE THAT.

TYPICALLY SEE IT UP.

FULL-SERVICE HOTELS.

THERE'S ALSO A PROCESS FOR DEVIATIONS.

IT WOULD REQUIRE ANY DEVIATION TO THIS ORDINANCE, A RECOMMENDATION FROM THE PLANNING AND ZONING COMMISSION, AS WELL AS APPROVAL FROM TOWN COUNCIL.

[L. CONSENT AGENDA]

AND THESE PERFORMANCE STANDARDS ARE ALSO CONSISTENT WITH WHAT NEIGHBORING MUNICIPALITIES ARE DOING AS WELL.

PROVED THE TEXT AMENDMENTS WOULD BE EFFECTIVE TODAY, MARCH 24TH.

THIS IS AN EXAMPLE OF A DEVELOPMENT THAT WOULD NOT NEED

[M.1. (TABLED 2.17.2026, 2.24.2026) Discuss, consider and act regarding WA Resolution 26-03 to approve contracting with Technology Lab to provide Information Technology services to Westlake Academy and authorizing the Head of School to execute the agreement for same. (Dr. Kelly Ritchie, Head of School)]

TO ADHERE TO THIS ORDINANCE AS THEY'RE GRANDFATHERED IN.

THE MARRIOTT'S BEEN BUILT, CONSTRUCTED, AND PERMITTED.

SO UNLESS THERE IS A RENOVATION THAT IS GREATER THAN 50% OF THE BUILDING FOOTPRINT, THEN AS THEY SIT TODAY, THEY'RE LEGALLY NONCONFORMING.

THIS IS AN EXAMPLE OF A DEVELOPMENT THAT WOULD REQUIRE TO ADHERE TO THE ORDINANCE 1044 AS IT'S A BLANK, RAW PIECE OF LAND.

SO ANY DEVELOPMENT FOR A HOTEL ON THIS LAND WOULD REQUIRE THESE STANDARDS TO BE MET.

IN SUMMARY, THE PROPOSED TEXT AMENDMENTS RESPOND TO THE INCREASED DEMAND FOR LODGING, PARTICULARLY ALONG 114, WHILE ADAPTING TO THE DEVELOPMENT AND GROWTH NEEDS AS WELL AS EXPECTATIONS FOR THE TOWN.

AND THE PROPOSED AMENDMENTS ARE CONSISTENT WITH THE TOWN'S STRATEGIC VISION.

THE PLANNING AND ZONING COMMISSION MET ON MARCH 3, 2026, AND RECOMMENDED APPROVAL BY A 5-0 VOTE.

AND THE DEPARTMENT OF PLANNING AND DEVELOPMENT RECOMMENDS APPROVAL AS WELL.

ACTIONS OPTIONS TONIGHT, YOU CAN APPROVE, YOU CAN MOTION TO APPROVE WITH CONDITIONS, MOTION TO DENY, OR MOTION TO TABLE TO A SPECIFIC DATE.

I'M HAPPY TO ANSWER ANY QUESTIONS YOU ALL HAVE.

I DO HAVE A QUESTION.

ANY QUESTIONS? HOW DOES THIS IMPACT THE TWO OR THE ONE PREVIOUSLY APPROVED BUT NOT YET STARTED BUILDING HOTEL AND ANY OTHER FUTURE? I MEAN, THE FUTURE ONE IS OBVIOUS.

WHAT ABOUT THE ONE? IF YOU'RE REFERRING TO THE FUTURE ONE THAT'S PLANNED IN THE ENTRATA DEVELOPMENT, THEN THESE STANDARDS.

WILL APPLY WITH THE EXCEPTION OF THE 150 ROOM NUMBER.

BUT THE GARDEN INN THAT'S GOING IN? THE GARDEN INN IS PERMANENT AND UNDER CONSTRUCTION.

THE IDEA BEHIND THE 150 AS PART OF IT AS WELL IS BECAUSE THE KELTON GARDEN INN HAS 128 ROOMS RIGHT NOW, AND IT WOULD MAKE THEM CONFORMING WITH THE ROOM NUMBER.

THERE'S A CARVE-OUT FOR THE EXISTING HOTEL.

ANY OTHER QUESTIONS FROM COUNCIL? NOW OPEN UP A PUBLIC HEARING.

DOES ANYONE LIKE TO COMMENT ON ORDINANCE 1044? I NOW CLOSE THE PUBLIC HEARING.

CAN I GET A MOTION TO APPROVE ORDINANCE 1044? SO MOVED.

CAN I GET A SECOND? SECOND.

SCUTS CONSIDER AN ACT TO APPROVE LETTER OF COMMITMENT TO PROVIDE TEMPORARY STORM SHELTER ACCOMMODATIONS FOR STUDENTS, STAFF, AND VISITORS ASSOCIATED WITH THE WESTLAKE ACADEMY ARTS AND SCIENCE BUILDING EXPANSION.

GREAT AGENDA ITEMS. J1.

THIS IS BASICALLY JUST KIND OF DIRECTIONALLY WE'RE GOING TO BE COMPLIANT, RIGHT? THAT'S CORRECT, SIR.

SO THIS IS JUST A LETTER FROM THE BOARD SAYING THAT, YES, WE WILL MEET OUR COMPLIANCE NEEDS TO KEEP THE PROJECT ROLLING FORWARD.

YEAH, AND I MET JASON OUT THERE.

I THINK WE GOT A SPOT FOR IT.

WE STILL HAVE WORK TO DO.

ALL WE'RE LOOKING FOR IS APPROVAL TO BE COMPLIANT.

ANY QUESTIONS FROM COUNCIL? CAN I GET A MOTION TO APPROVE A LETTER OF COMMITMENT TO PROVIDE TEMPORARY STORM SHELTER AND ACCOMMODATION TO THE STREET STAFF AND VISITORS? CAN I GET A SECOND? SECOND.

DISCUSS, CONSIDER, AND ACT REGARDING RESOLUTION 26-07, APPROVING A CONSTRUCTION CONTRACT WITH SIDELCO.

[02:35:01]

HERE'S A FINAL ONE.

J2.

AM I SAYING THAT RIGHT? SIDELCO? YES, SIR.

FOR THE WA ARTS AND SCIENCES BUILDING PROJECT AT A MOUNTAIN HEIGHT TO EXCEED 6.7 MILLION.

MASON.

YES, IT ACTUALLY OCCURRED TO US YESTERDAY THAT SOME OF YOU MAY NOT HAVE SEEN SOME OF THESE IMAGES, SO I THOUGHT I WOULD SHARE THEM REAL QUICKLY.

I KNOW IT'S RUNNING LATE.

NO, THAT'S OKAY.

THESE ARE IMPORTANT.

SO WE DID GO OUT WITH BRW'S DRAWINGS.

WE DID GO OUT FOR A 100% PACKAGE FOR SEALED PROPOSALS, AND WE RECEIVED FIVE BACK THAT WERE REALLY ALL PRETTY GOOD.

WE OPENED THEM, AND WE SELECTED SUDOKU THROUGH THAT PROCESS.

BUT BEFORE WE GET TO THAT, HERE'S A COUPLE OF IMAGES THAT CAME FROM BRW JUST THIS LAST WEEK THAT I THOUGHT WERE PRETTY EXCELLENT.

THIS IS THE NEW BUILDING, A RENDERING OF THE SOUTH FACADE.

THAT'S CURRENTLY THE GRASS FIELD THAT SITS THERE NOW.

YOU CAN ACTUALLY SEE KIND OF THE VERY FAR LEFT THERE ARE THE EXISTING ARTS AND SCIENCE BUILDING.

SO OBVIOUSLY IT MATCHES THE EXISTING ARCHITECTURE QUITE NICELY.

THE GRAYED OUT PORTION OF THIS IS THE EXISTING ARTS AND SCIENCE BUILDING.

KIND OF CROPPED HERE IN THIS IMAGE BUT THAT'S THAT'S OUR NEW FACILITY THERE ON THE RIGHT SOME IMAGES OF THE 8 000 SQUARE FEET GIVE OR TAKE THOUSAND SQUARE FEET CORRECT REALLY EXCEPTIONAL INTERIOR SO UM I HAVE TO GIVE PROPS TO BRW HERE THEY DID A GREAT JOB OF MATCHING ARCHITECTURE AND REALLY ELEVATING YOU'LL NOTICE UM THE CORRIDOR IS REALLY MORE OF AN OPEN SPACE A BIG SLIDING DOORS A LOT OF SPACE ESPECIALLY THIS IS A MAKER SPACE AND A BIOLOGY LAB THINGS WHERE PEOPLE WANT TO PULL OUT, DO ARTWORK OUT IN THE HALLWAYS.

SO THIS IS REALLY NICE.

I BELIEVE THIS IS THE MAKERSPACE LOOKING NORTH.

I THINK THAT'S A PYP 1 BUILDING.

THEY'RE IN THE EXISTING RETAINING WALLS.

THIS IS THE ART ROOM LOOKING BACK.

THESE ARE NEW.

THEY'RE DIFFERENT.

THESE ARE NICE.

IT'S HARD TO TELL HERE, BUT EVEN THOSE BIG CLEAR STORY WINDOWS, SO THE BEAMS GO ACROSS, BUT THAT ROOF IS ACTUALLY HIGHER.

SO IT'S GOING TO BE A BIG, NICE OPEN SPACE.

SO FOR YOUR APPROVAL WITH THE ATTACHMENT IS THE A101.

AGREEMENT BETWEEN OWNER AND CONTRACTOR.

ALSO IN THE ATTACHMENTS TO 201, WHICH IS JUST STANDARD CONDITIONS, KIND OF A BOILERPLATE DOCUMENT.

I HAVE GONE OVER THESE WITH A FINE-TOOTH COMB.

WE'VE GONE BACK AND FORTH WITH SOUDALCO.

VERY FEW COMMENTS WERE EVEN NEEDED TO BE MADE.

THEN THE TOWN ATTORNEY HAS LOOKED THESE OVER, AND EVERYBODY WAS IN AGREEMENT.

SO I DON'T KNOW WHAT ELSE IS IMPORTANT.

DATES, CONTINGENCIES, I BELIEVE EVERYTHING IS BUTTONED UP.

I'VE GOT TO TELL YOU ONE.

I CAN'T TELL YOU HOW MUCH I APPRECIATE YOUR HELP.

I'VE NEVER BEEN THROUGH THE SEALED BID ACADEMY AWARDS EVENT THAT YOU OPEN UP AND YOU GO THROUGH.

DIANA, THANK YOU.

IT WAS REALLY INTERESTING.

IT WAS ALSO INTERESTING THE ARRAY OF BIDS IN THERE, RIGHT? BUT YOU HAVE EXPERIENCE WITH THIS COMPANY.

YES, SOUDALCO THEMSELVES HAS MANY DECADES OF BUILDING SCHOOLS, SMALL, LARGE, GROUND-UP, ADDITIONS, RENOVATIONS.

I PERSONALLY HAVE BUILT THREE SCHOOLS WITH THEM AND AN ADDITION.

THERE'S NOTHING TO SAY BUT GOOD.

OUR ARCHITECT REALLY LIKES WORKING WITH THEM.

YEAH, BRWS WORK WITH THEM.

AND TO ME, THAT GOES A LONG WAY.

THEIR PRICING WAS EXCELLENT.

THEIR ALTERNATES WERE EXCELLENT.

SO THEY REALLY WON FAIR AND SQUARE ON THIS ONE.

ANY OTHER QUESTIONS OR COMMENTS? QUESTIONS? THIS FITS WITHIN THE CIP AS WE HAVE IT NOW, RIGHT? THIS WAS IN OUR BUDGET.

YES, SIR, IT IS WITHIN THE BUDGET.

CAN I GET A MOTION TO APPROVE RESOLUTION 26-07? SO MOVED.

CAN I GET A SECOND? SECOND.

WE'VE GOT MY SHOVEL IN THE CAR.

WE'RE GOING TO BREAK GROUND.

JASON HAS BEEN ALL IN.

YEAH, JASON, THANK YOU.

WE MET DEADLINES.

AGENDA ITEM J3, DISCUSS, CONSIDER, AND ACT, ADOPT FIRE DEPARTMENT COMPENSATION STEP PLAN DESIGNED TO POSITION WESTLAKE FIREFIGHTERS SALARIES TARGETING THE 80TH PERCENTILE THIS IS WHAT WE TALKED ABOUT EARLIER ANY OTHER QUESTIONS CAN I GET A MOTION TO APPROVE SO MOVED AND I GET A SECOND ALL IN FAVOR AYE ANY OPPOSED WAIT TAKE YOUR SEAT YES SIR YOU CAN I GOT TO SAY YOU GOT THE START OVER THIS IS A MONUMENTAL DECISION FOR OUR DEPARTMENT I WOULD REALLY WANT TO EXPRESS THAT TO YOU SAY THANK YOU VERY MUCH I'D ALSO LIKE TO SAY THANK YOU TO WADE, SANDY, MARINA THAT WORKS IN HR. TRULY A BIG, BIG DECISION FOR US, SO THANK YOU.

TODD SAID IT REALLY WELL.

WE PROBABLY DON'T THANK YOU GUYS ENOUGH AND OUR POLICE AND OUR FIRE AND WHAT YOU DO FOR OUR COMMUNITY.

BY GOD, I'M GOING TO GET YOU ALL A LIFETIME MEMBERSHIP BEFORE I GO, BUT BABY STEPS.

[02:40:11]

I APPRECIATE IT.

TODD'S WORSE THAN I AM.

THANK YOU ALL.

BIG DEAL.

YOU BET, CHIEF.

THANK YOU FOR ALL YOU DO.

OKAY, IT'S 640.

LET'S GET INTO WESTLAKE ACADEMY.

IT IS 640.

WESTLAKE ACADEMY, WE HAVE A QUORUM.

THERE'S NO PUBLIC COMMENTS.

ANYBODY FOR PUBLIC COMMENTS? CONSENT AGENDA.

ANYBODY HAVE ANYTHING ON THE CONSENT AGENDA? GOING TO GET A MOTION TO APPROVE THE CONSENT AGENDA? SO MOVED.

GOING TO GET A SECOND? ALL IN FAVOR? ANY OPPOSED? MOTION CARRIES.

NEXT, AGENDA ITEM M, REGULAR AGENDA ITEMS. THIS WAS TABLE 217-2026.

DISCUSS, CONSIDER, AND ACT REGARDING WA RESOLUTION 26-03 TO APPROVE CONTRACT WITH TECHNOLOGY LAB TO PROVIDE INFORMATION TECHNOLOGY SERVICES TO WESTLAKE ACADEMY AND AUTHORIZING OUR HEAD OF SCHOOL TO EXECUTE THE AGREEMENT FOR SAME, DR.

RITCHIE.

DUSTIN, SHOULD THIS BE? NO WORRIES.

THANK YOU ALL SO MUCH.

MOVING.

IT'S OKAY.

NO WORRIES.

SO WHILE DUSTIN GETS THAT PULLED UP, WE'RE HERE TONIGHT TO REVISIT THE NEGOTIATION OF THE CONTRACT WITH TECHNOLOGY LAB.

AS YOU GUYS KNOW, THIS IS A PROCESS THAT STARTED BACK IN OCTOBER AND HAS.

GONE THROUGH MANY ITERATIONS, LOTS OF DISCUSSIONS ABOUT WHERE THE ACADEMY IS WITH REGARD TO OUR TECHNOLOGY NEEDS AND THE EXPENSES ASSOCIATED WITH TECHNOLOGY.

IT'S IMPORTANT TO POINT OUT, AND WHEN WE GET THESE SLIDES GOING, YOU'LL SEE THIS, BUT WE HAD 35 DIFFERENT PROVISIONS THAT WERE ACCEPTED BY TECHNOLOGY LAB TO MAKE THIS CONTRACT MUCH MORE ACADEMY-FRIENDLY.

AS YOU KNOW, THIS IS A COMPANY THAT IS BASED OUT OF NASHVILLE, AND SO SOME OF THE ISSUES WERE JUST TEXAS LAW-RELATED, AND SO JANET DID A GOOD JOB OF REALLY SCREENING THOSE.

MR. DUANE.

REVIEWED WHAT WAS KIND OF THE FINAL DRAFT OF THE CONTRACT AND FOUND ABOUT FOUR OR FIVE ADDITIONAL ITEMS THAT WERE CORRECTED AS OF TODAY.

SO EVEN THE ONE THAT YOU'RE SITTING WITH RIGHT NOW WILL HAVE JUST A FEW ADDITIONAL TWEAKS TO IT.

TEN OF THOSE AREAS THAT WERE NEGOTIATED HAD MEANINGFUL CONCESSIONS FROM TECHNOLOGY LAB, INCLUDING THEY WENT FROM A FIVE-YEAR TO A THREE-YEAR AGREEMENT.

WITH 12-YEAR AUTO RENEWALS AND ULTIMATELY A 30-DAY OPT-OUT NOTICE.

MEANINGFUL LIABILITY PROTECTIONS.

TEXAS, AGAIN, MEETING THE TEXAS STATUTES AROUND THOSE THINGS, AROUND THE LEGAL ISSUES.

NEW NON-APPROPRIATION CLAUSE AND TERMINATION WITHOUT CAUSE FOR WESTLAKE ACADEMY.

AND THEN THE NEW INSURANCE ASSURANCES.

YOU'LL SEE THOSE HERE.

SO THAT'S KIND OF A HIGH-LEVEL LOOK AT...

WHAT HAS BEEN GOING ON OVER THE LAST LIKE SIX WEEKS WITH REGARD TO THESE NEGOTIATIONS.

GUYS, ARE Y'ALL ON? JAMES AND THEY JUST JOINED.

JAMES AND CONNOR, WELCOME.

WE ARE GOING OVER JUST THE HIGH LEVEL CONCESSIONS THAT WERE MADE BY TECHNOLOGY LAB.

AND THEN I'M GOING TO HIT SOME OF THE HIGHLIGHTS ON THE DIFFERENT SLIDES.

CAN YOU HEAR US? YES, MA'AM.

HOW ARE YOU? PERFECT.

THANK YOU FOR BEING HERE.

ABSOLUTELY.

JUSTIN, DO YOU HAVE TO MOVE US FORWARD OR SHOULD THIS BE WORKING? NO, THAT'S OKAY.

ALL RIGHT, PERFECT.

ALL RIGHT, SO WE'RE GOING TO HIT JUST A HIGHLIGHT OF THESE BECAUSE THERE ARE LIKE NINE SLIDES OF DIFFERENT CONCESSIONS THAT WERE MADE.

AS I POINTED OUT, WE WENT FROM 60 MONTHS TO 36 MONTHS.

TERMINATION FOR CAUSE WITH, I BELIEVE THIS ENDED UP BEING A 30-DAY NOTICE.

TERMINATION WITHOUT CAUSE, THIS ALSO WENT DOWN FROM 60 DAYS.

AGAIN, THERE WERE SOME FINAL NEGOTIATIONS TODAY THAT OCCURRED, SO THESE SLIDES WERE FROM FRIDAY, I THINK.

SO THERE'S A COUPLE OF THINGS THAT ARE EVEN BETTER THAN WHAT ARE ON THE SLIDES RIGHT NOW.

FEES AND TERMS. SO NON-RECURRING INVOICES DUE WITHIN 30 DAYS OF RECEIPT INSTEAD OF ON RECEIPT, WHICH GIVES US JUST A LITTLE BIT OF LEEWAY TO MAKE SURE THAT THOSE OCCUR AS WE WOULD EXPECT.

YES, WHICH IS GREAT.

[02:45:01]

6% LATE INTEREST INSTEAD OF APPROXIMATELY 18%.

THERE WERE A LOT OF, AGAIN, VERY ACADEMY-FORWARD CONCESSIONS THAT WERE MADE.

AND REALLY, WE CAN TALK ABOUT WHAT ALL WAS DONE.

BUT THE ATTITUDE AND BEHAVIOR AND THE CONCESSIONS THAT WERE MADE AND THE SPIRIT IN WHICH THEY WERE MADE UNDERSCORE HOW MUCH CHARTER IMPACT, I'M SORRY, TECHNOLOGY LAB REALLY WANTS TO, SORRY GUYS, I KNOW.

WOW, THAT'S HARD.

WE HAVE HAD, I KNOW, I'M SORRY.

WE HAVE BEEN IN SO MANY HOURS OF CONVERSATION WITH BOTH OF THESE PEOPLE AND THEY'RE ALL GREAT.

THEY SHOULD WORK.

THEY SHOULD WORK TOGETHER AND MAKE A SUPER GROUP SO THAT PEOPLE CAN DO THIS ONCE INSTEAD OF TWICE.

I KEEP GETTING STUCK, DUSTIN.

I'M SO SORRY.

LIABILITY AND INDEMNIFICATION.

THEY HAVE INCLUDED THEIR INSURANCE AGREEMENT AND, AGAIN, RAISED CAPS.

AND EXCEPTIONS ON ALL OF THE DIFFERENT THINGS THAT MIGHT HAPPEN THAT WE NEVER EXPECT TO HAPPEN, DON'T WANT TO HAPPEN, BUT THERE'S PROTECTIONS THERE.

AND THEN THERE WAS AN ISSUE WITH PASSWORD RELEASE.

SO IT KIND OF READ THAT THEY MIGHT HOLD OUR PASSWORDS HOSTAGE IF WE DIDN'T PAY.

THEY'RE NOT GOING TO DO THAT, SO THAT'S GOOD NEWS.

I DON'T THINK THEY EVER INTENDED TO DO THAT, BUT THERE WERE, YOU KNOW, WHEN PEOPLE DON'T PAY, IT BECOMES A PROBLEM FOR EVERYONE.

SO WE CERTAINLY DON'T INTEND NOT TO DO THAT, AND THEY DON'T INTEND TO HOLD OUR DATA FROM US.

SO THAT WAS KIND OF MUTUALLY AGREED UPON.

GOVERNANCE, JUST AGAIN, THEY'RE GOING TO ADHERE TO TEXAS EXPECTATIONS, TARRANT COUNTY EXPECTATIONS, THREE-DAY DELIVERY NOTICE FOR FIRST CLASS.

CLASS.

I MEAN, IT'S JUST THERE WAS A LOT THAT WENT INTO REALLY REWORKING THE TERMS OF THIS CONTRACT.

NEW PROVISIONS, FELONY CRIMINAL CONVICTIONS, EQUAL TREATMENT, NON-DEI, THESE ARE AGAIN PART OF TEXAS STATUTORY REQUIREMENTS.

THE ISRAEL ENERGY COMPANY BOYCOTT ASSURANCE, IRAN, SUDAN, AND FOREIGN TERRORIST ORGANIZATIONS PROHIBITION.

TEXAS HAS SOME, YOU KNOW, THEY HAVE SOME THINGS THAT WE HAVE TO ACKNOWLEDGE AND ADHERE TO.

SO HIGHLIGHT AGAIN, THREE YEARS INSTEAD OF FIVE, WHICH REALLY PROTECTS THE ACADEMY FROM ENGAGING IN A VERY LENGTHY TERM OF AGREEMENT THAT, YOU KNOW, WITHOUT AN ABILITY TO TEST OUT HOW ALL OF THAT WORKS.

COST CONTROLS, NO INCREASES FOR THE FIRST TWO YEARS, AND THEN 30-DAY INVOICE WINDOW PAYMENT, 6% ANNUAL LATE FEE INSTEAD OF 18%.

THE EXIT FLEXIBILITY WITH TERMINATION WITHOUT CAUSE.

PLUS NON-APPROPRIATION CLAUSE TIED TO TEXAS LEGISLATIVE FUNDING OR, YOU KNOW, DECIDING THAT THEY DON'T WANT TO CONTINUE TO FUND.

LIABILITY BALANCE, SO BOTH THE MUTUAL INDEMNIFICATION, THE $250,000 INSURANCE LIMIT CAP, PROFESSIONAL SERVICE STANDARD REPLACES AS IS.

DATA AND INSURANCE, TECHNOLOGY LAB IS REQUIRED TO CARRY CYBER LIABILITY AND E&O INSURANCE.

WESTLAKE ACADEMY IS NAMED AS ADDITIONAL INSURED, DATA SHARING AGREEMENT ADDED, AND THEN ALL OF THE TEXAS COMPLIANCE THAT WE'VE ALREADY TALKED ABOUT.

SO THIS IS AN OVERVIEW OF THE NEGOTIATIONS AND HOW THE CONTRACT HAS TURNED OUT.

WHAT IT DOESN'T DO IS, AGAIN, REINFORCE EXACTLY WHERE WE ARE WITH THIS NEED, WHICH IS HOW WE STARTED.

THE CONTRACT IS IMPORTANT, BUT THE DAY-TO-DAY SERVICE IS REALLY WHAT WE'RE TALKING ABOUT.

I HAD CONVERSATIONS WITH SEVERAL OF YOU THAT WE HAVE ACKNOWLEDGED BOTH, I THINK, PUBLICLY AS WELL AS WITH THE BOARD THAT THIS IS A CULTURE SHIFT.

IT'S A CULTURE SHIFT WHEN YOU MOVE FROM ONE STANDARD OF PRACTICE TO ANOTHER.

I DON'T BELIEVE WE'RE GOING TO SEE ANY RESPONSE LAPSE.

AND I WILL SAY THIS ON THE RECORD.

I LOVE RAY WORKMAN.

HE'S PHENOMENAL.

HE'S BEEN EVERYTHING TO EVERYONE THAT HE COULD POSSIBLY BE.

HE ALSO CAN'T BE THE ENTIRE TECHNOLOGY DEPARTMENT, AND WE JUST CAN'T AFFORD THE SYSTEM THAT WE'RE IN NOW.

WE ARE PAYING ABOUT $230,000 MORE PER YEAR THAN WHAT THIS PARTICULAR SERVICE WILL COST, AND IT IS IMPORTANT FOR THE ACADEMY'S BOTTOM LINE THAT WE'RE ABLE TO DO THE...

HARD THINGS THAT WE HAVE TO DO.

KELLY, CAN I MAKE ONE COMMENT? YEAH, ABSOLUTELY.

SO TWO KEY THINGS THAT YOU LEFT OUT OF YOUR UPDATE THAT'S RELEVANT FOR THE COUNCIL TO KNOW OR THE SCHOOL BOARD TO KNOW.

[02:50:01]

ONE IS THAT ONE OF THE BIG THINGS THAT WAS MISSING FROM THAT FIRST DRAFT OF THE CONTRACT, AND IT MAY HAVE BEEN AN OVERSIGHT BUT HAS NOW BEEN ADDED, IS THE SUMMER SERVICES.

I'M SORRY? SUMMER SERVICES.

SUMMER SERVICES, YES.

DO YOU WANT TO SPEAK TO THAT VERY QUICKLY? YES, DO YOU WANT ME TO? YES.

SO I THINK THAT WAS A TYPO.

CONNOR, JAMES, Y'ALL CAN SPEAK TO THIS.

IN THE FIRST DRAFT OF WHAT WE GOT, THE SUMMER SERVICES, IT LOOKED LIKE THOSE WERE NOT INCLUDED, BUT THAT WAS, AS SOON AS WE CAUGHT THAT, THAT WAS VERY QUICKLY ADDRESSED.

AND I KNOW THAT WE HAD TALKED ABOUT SUMMER SERVICES BEING ESSENTIAL, OBVIOUSLY, TO GETTING SET UP FOR THE SCHOOL YEAR.

SO CAN YOU GUYS ADDRESS WHETHER THAT WAS AN OVERSIGHT OR WHETHER THAT WAS SOMETHING THAT THERE WAS SOME CONFUSION AROUND? YEAH, ABSOLUTELY.

SO THE REASON THAT IT NORMALLY IN OUR NORMAL STANDARD AGREEMENT SHOWS AS IF APPLICABLE IS BECAUSE NOT ALL OUR SCHOOLS NEED OR WANT SUMMER SERVICES INCLUDED ALL THE TIME.

LIKE, YOU DON'T NEED ALL THE SAME THINGS.

A LOT OF SCHOOLS ARE DIFFERENT THAN OTHERS.

BUT YEAH, I MEAN, YOU KNOW, AS FAR AS SUMMER SERVICES, WE DO THAT ALL THE TIME FOR A TON OF OUR SCHOOL CLIENTS.

SO NOW THEY'RE INCLUDED IN YOUR AGREEMENT.

AND SO, YOU KNOW, AS FAR AS EVERYTHING FROM.

YOU KNOW, COLLECTING DEVICES FROM A STUDENT STANDPOINT TO, YOU KNOW, IF WE HAVE TO WIPE ANYTHING AND THEN RE-IMAGE ANYTHING.

GOING THROUGH, DOING A FULL CHECKLIST, YOU KNOW, WITH ON-SITE TECHNICIANS GOING THROUGH THE BUILDING PRIOR TO LIKE, YOU KNOW, PROFESSIONAL DEVELOPMENT AND ALL THE FACULTY COMING BACK TO CAMPUS IN, YOU KNOW, MIDDLE OF JULY.

DOING ALL THAT, DOING KIND OF TESTING AROUND THE NETWORK.

SOMETIMES IF TEACHERS TAKE LAPTOPS AWAY FOR THE SUMMER, BECAUSE SOME NEED TO, BECAUSE MAYBE THEY'RE DOING SOME PLANNING FOR THE NEW SCHOOL YEAR, OR SOME OF THEM MAY BE DOING SOME SUMMER SCHOOL TYPE THINGS IN SOME CASES, IF A DEVICE HAS GONE FROM THE NETWORK FOR TOO LONG, A LOT OF TIMES THAT'S CALLED A TOKEN.

AND IT CAN'T.

IT GETS IT BASICALLY THEY GET DISCONNECTED FROM THE NETWORK AND SO JUST MAKING SURE THAT ALL THOSE DEVICES ARE CONTINUING TO BE NETWORK JOINED AND THINGS OF THAT NATURE.

THOSE ARE ALL THINGS THAT THAT ARE INCLUDED AND THEN THE SECOND THING, WHICH IS PROBABLY EVEN MORE IMPORTANT BECAUSE IT WAS ONE OF THE CONCERNS RAISED IN OUR VERY FIRST CONVERSATION, IS THAT IN THE NEW VERSION OF THE CONTRACT, WE'RE NOT OBLIGATED TO USE THEIR HARDWARE AND LICENSE THEIR HARDWARE, WHICH ALLOWS US TO CONTINUE TO USE THE EXISTING HARDWARE, WHICH IS UNDER LEASE, THE EXISTING ACCESS POINTS AND ROUTERS, ET CETERA, WHICH REDUCES THE COST OF THIS CONTRACT BECAUSE WE'RE STILL OBLIGATED TO USE THAT UNDER OTHER CONTRACTS.

I APPRECIATE THAT, MR. DUANE.

THANK YOU SO MUCH.

AND I CAN'T BELIEVE I FORGOT TO BRING THAT UP.

THAT WAS ONE OF THE MAJOR POINTS.

I KNOW OF CONCERN.

WE DON'T KNOW EXACTLY HOW THOSE CONTRACTS WERE WRITTEN.

I THINK ALL OF OUR HOPES AFTER SITTING THROUGH ALL OF THESE DISCUSSIONS IS THAT THEY HAVE THE SAME KIND OF TERMINATION OF CONVENIENCE.

THAT'LL GIVE US TIME TO LOOK INTO THOSE TO SEE IF ALL OF THOSE WERE DESIGNED IN THAT MANNER WITH THE SAME KIND OF CARE THAT'S GONE INTO THIS.

SO THE REALITY IS I DON'T HAVE THOSE IN HAND.

THE TECHNOLOGY LAB GUYS DON'T HAVE THE THANK YOU.

FULL DOCUMENTS AROUND THAT SO WE'VE NOT BEEN ABLE TO DIG IN TO SEE EXACTLY HOW WE CAN EXIT THOSE SO THIS WILL BUY US SOME TIME TO DO THAT THE FIREWALL LEASE IS WE ARE IN THAT UNTIL DECEMBER 2026 AT THAT TIME WE WOULD ENGAGE IN A DIFFERENT PROCESS AROUND FIREWALLS AND THEN THE THE ACCESS POINTS THE SWITCHES THOSE ARE THOSE ARE NOT UP UNTIL THE 2930 SCHOOL YEAR SO THAT'S WE'RE THAT'S A LONG TIME SO WE'RE GOING TO AGAIN, GET OUR HANDS ON THOSE FULL CONTRACTS AND SEE EXACTLY WHAT WE'VE BEEN OBLIGATED TO AND WHAT MIGHT BE ABLE TO BE DONE.

BUT THE GREAT NEWS IS THAT IN THE SHORT TERM, WE'RE NOT GOING TO HAVE DUPLICATE PAYMENTS GOING ON BECAUSE THEY'RE GOING TO MAKE THE CONCESSIONS TO USE THE CURRENT EQUIPMENT THAT WE HAVE AND MAINTAIN THOSE WHILE WE'RE USING THOSE.

SO DO WE KNOW IF WE'RE ABLE TO GET OUT OF THOSE CONTRACTS? WE DON'T KNOW YET.

NO, NO, NO.

I DIDN'T FINISH THE QUESTION.

IF WE WERE ABLE TO GET THOSE, WHAT IS THE EFFECT ON THIS CONTRACT? WELL, WE HAVE TO HAVE THOSE MATERIALS.

BUT IDEALLY, THEY WOULD BE MATERIALS THAT HAD BEEN SELECTED AND PLACED BY TECHNOLOGY LAB SO THAT THE CONTINUITY OF THE EQUIPMENT THAT THEY USE IS CONSISTENT ACROSS CAMPUSES.

THEY'RE JUST CHOOSING TO GO AHEAD AND USE WHAT WE HAVE RIGHT NOW SO THAT WE DON'T HAVE TO INCUR THOSE DUPLICATE EXPENSES.

AND THAT WOULDN'T AFFECT THE MONTHLY COST.

OUT OF FACT ONE-TIME COST FOR HARDWARE.

I'M GOING TO LET CONNOR AND JAMES SPEAK TO THAT JUST TO ENSURE I DON'T SAY ANYTHING.

YEAH, THAT'S CORRECT.

AND ON TOP OF THAT, YOU KNOW, WE WOULD HELP GUIDE THE ACADEMY THROUGH THE E-RATE PROCESS, RIGHT, BECAUSE E-RATE IS A PROGRAM THAT THEY COULD UTILIZE TO OFFSET COST OF EQUIPMENT WHEN IT'S TIME

[02:55:01]

TO REFRESH.

QUITE FRANKLY, YOU KNOW, WE HAVE OTHER SCHOOLS THAT USE UBIQUITY.

THE MAIN REASON THAT WE CONCEDED ON THAT IS WE JUST UNDERSTAND THAT THERE'S, YOU KNOW, THERE'S A LEASE IN PLACE THAT JUST MAKES IT FINANCIALLY DETRIMENTAL, REALLY, TO BOTH THE ACADEMY AND THE TOWN TO MOVE.

SO ULTIMATELY, YOU KNOW, KNOWING THAT, WE JUST DECIDED, HEY, YOU KNOW, TALKING TO OUR NETWORK OPERATIONS CENTER TEAM, HEY, WE'RE GOING TO MANAGE AS IS.

WE'RE ACTUALLY IMPLEMENTING A...

A CLOUD LICENSE SO THAT IT'S MORE EASILY MANAGEABLE, EVEN REMOTELY.

BUT, YEAH, THAT WAS KIND OF OUR DECISION AROUND THAT.

AND THEN AS WE DO THIS ARTS AND SCIENCE EXPANSION, WE'RE OBVIOUSLY GOING TO HAVE NEW SPACES THAT ARE GOING TO NEED NEW EQUIPMENT.

SO AT THAT POINT, WE'LL JUST WORK WITH YOU GUYS TO INTEGRATE NEW EQUIPMENT.

I MEAN, WILL YOU BE ABLE TO MATCH WHAT WE HAVE OR PUT NEW, YOU KNOW, NEW EQUIPMENT THAT WILL? I'M SURE YOU CAN, BUT IS THAT GOING TO BE SOMETHING THAT WILL CAUSE AN ISSUE IN TERMS OF INTEGRATING THAT WITH THE EXISTING SYSTEM? NO, IT WON'T.

PART OF OUR SERVICES THAT ARE INCLUDED ARE STRATEGIC SERVICES, KIND OF VIRTUAL CIO SERVICES.

SO YOU'RE GOING TO SEE A LOT OF STRATEGY AROUND THAT, AROUND WAYS THAT THAT CAN BE PAID FOR.

THINKING THROUGH KIND OF LONG-TERM TERM STRATEGY AROUND WHEN IT WHEN THAT NETWORK'S GOING TO GET REFRESHED, YOU KNOW, WILL IT PLAY NICE WITH YOU KNOW, THE MORE NEAR-TERM NEEDS THAT MAY HAPPEN FOR A BUILDING LIKE YOU'RE TALKING ABOUT SO WE DEAL WITH THAT ALL THE TIME.

WHAT OTHER QUESTIONS? I HAD A COUPLE.

THERE WAS A DIFFERENCE IN THE ORIGINAL PROPOSAL THE SAVINGS FROM E-RATE VERSUS SECOND PROPOSAL.

WHY DID THAT CHANGE? I THINK THAT WE TALKED ABOUT THAT EARLIER ON THE CALL.

JAMES, DID YOU HEAR THAT QUESTION? I KNOW YOU ADDRESSED THAT WITH ME EARLIER.

I THINK IT WAS JUST POTENTIALLY A MISUNDERSTANDING OF THE WAY THAT IT WAS READING ON THE PAPER.

AND, CONNOR, I THINK YOU KNOW THE ANSWER TO THIS BEST, SO YOU CAN CHIME IN.

YEAH, GUYS, BASICALLY THE TOTAL REIMBURSEMENT FROM THE E-RATE WENT DOWN BECAUSE ON THE ORIGINAL PROPOSAL THAT FINANCE NETWORK, THAT NEW NETWORK WAS INCLUDED.

SO BASICALLY THE AMOUNT THAT WE WERE SUBMITTING TO E-RATE ON THE ORIGINAL PROPOSAL WAS HIGHER.

IT WAS LIKE $8,300.

AND THEN WE TOOK OUT THE NEED FOR THE NEW FINANCE NETWORK, SO NOW IT'S ONLY $3,300.

SO BASED ON THE REIMBURSEMENT FROM E-RATE, THE ACTUAL REIMBURSEMENT WENT DOWN, BUT YOUR TOTAL OUT-OF-POCKET COST ALSO WENT DOWN BECAUSE THERE'S NO NEED FOR THAT FINANCE NETWORK ANYMORE.

AND THE BOARD SHOULD KNOW WE'RE IN THE FINAL STAGES OF THE E-RATE PROCESS.

WE DON'T DO THAT THROUGH TECHNOLOGY LAB.

THAT'S DONE THROUGH A PRIVATE CONSULTANT.

AND WE'RE JUST ALMOST AT THE VERY END OF THAT PROCESS.

THAT'S A BIG DEAL.

IT'S A VERY BIG DEAL.

WELL DONE.

GREAT.

YEAH, YOU'RE GREAT.

IT'S A BUDGET QUESTION.

THE WAY I READ THIS, FIRST PAYMENT, MONTHLY PAYMENT IS MADE 30 DAYS AFTER.

YES, WE CLARIFIED THAT ON THE PHONE TODAY.

[M.2. Discuss, review and acknowledge receipt of the Intruder Detection Audit Report submitted by the Texas School Safety Center and approve related corrective action and security measures at Westlake Academy as needed.]

THERE WAS A TYPO, I THINK, THAT MADE IT SOUND LIKE IT WAS SUPPOSED TO START 30 DAYS AFTER SIGNING.

I THINK THE ASSUMPTION WAS THE SIGNING MIGHT OCCUR A LITTLE BIT LATER, BUT IT WILL START WITH THE JULY 1ST FISCAL YEAR.

SO THE NEWEST VERSION OF THE AGREEMENT ACTUALLY HAS THE DATE OF JULY 1ST IN IT.

[N. EXECUTIVE SESSION]