[3. Citizen Comments - According to Lubbock City Council Rules, any citizen wishing to appear in-person before a regular meeting of the City Council, regarding any matter posted on the City Council Agenda below, shall complete the sign-up form provided at the meeting, no later than 2:00 p.m. on November 7, 2023. Citizen Comments provide an opportunity for citizens to make comments and express a position on agenda items. ]

ALL RIGHT. NEXT WE HAVE CITIZEN COMMENTS.

CITIZEN COMMENTS.

ACCORDING TO THE LUBBOCK CITY COUNCIL RULES, ANY CITIZEN WISHING TO APPEAR IN PERSON BEFORE A REGULAR MEETING OF THE CITY COUNCIL REGARDING ANY MATTER POSTED SHALL COMPLETE THE SIGN UP FORM NO LATER THAN 2 P.M.

AND HAVE AN OPPORTUNITY TO MAKE COMMENTS AND EXPRESS A POSITION ON ANY GIVEN AGENDA ITEM.

I THINK. WE HAVE TWO CITIZEN COMMENTS TODAY.

I THINK FAMILIAR WITH THAT.

I'LL LET YOU HAVE THREE MINUTES.

YOU'LL GET THE TIMER AT 30 SECONDS BY MR. JIMMY OVER HERE. AND FIRST WE'LL START WITH MR. ADAM HERNANDEZ ON AGENDA ITEM 5.16.

GOOD AFTERNOON. MAYOR, COUNCIL.

ADAM HERNANDEZ I LIVE AT 7401 AVENUE X, AND I'M THE COMMUNICATIONS CHAIR FOR LUBBOCK COMPACT.

OOPS. DIDN'T MEAN TO DO THAT.

UH, ALL RIGHT.

SO FIRST AND FOREMOST, WE'D LIKE TO THANK THE MANY VOLUNTEERS AND CITIZENS WHO HELPED TO COLLECT THE SIGNATURES AND THE MORE THAN 10,000 CITIZENS WHO SIGNED THIS PETITION TO PLACE THIS ISSUE BEFORE YOU ALL HERE TODAY.

WE ALSO WOULD LIKE TO ONCE AGAIN THANK THE CITY SECRETARY'S OFFICE STAFF AND THE OTHER CITY STAFF MEMBERS WHO DID THE HARD AND TIME CONSUMING WORK OF VERIFYING THOSE SIGNATURES. IT'S NOT AN EASY TASK AND YOU ARE ALL APPRECIATED.

SO THANK YOU. NOW, CONCERNING THE ISSUE OF WHETHER OR NOT TO DECRIMINALIZE LOW LEVEL MARIJUANA POSSESSION HERE IN THE CITY OF LUBBOCK, THERE'S MUCH THAT CAN BE SAID, AND THERE IS MUCH THAT HAS ALREADY BEEN SAID.

THERE HAS BEEN NO SHORTAGE OF OPINIONS AND MISINFORMATION ABOUT THE SUBJECT, AND EVEN DISPARAGING REMARKS MADE ABOUT WHAT SOME FOLKS ASSUME PEOPLE SHOULD LOOK LIKE AND ACT LIKE, WHO UTILIZE MARIJUANA FOR ONE REASON OR ANOTHER.

THE FACTS ARE THIS RIGHT HERE IN LUBBOCK, TEXAS, THERE ARE MANY CITIZENS WHO ARE UPSTANDING, RESPONSIBLE ADULTS WHO UTILIZE MARIJUANA EVERY SINGLE DAY.

THIS INCLUDES PROFESSIONALS OF ANY TYPE YOU CAN THINK OF, WHETHER THE PURPOSE IS RECREATIONAL OR FOR SOME MEDICAL ISSUE THAT THEY MAY BE LIVING WITH.

IF THAT SURPRISES YOU, IT ONLY PROVES A POINT I'VE BEEN MAKING SINCE THE BEGINNING OF THIS INITIATIVE.

THE REASON THAT YOU AREN'T AWARE, AND MAY NEVER KNOW, IF SOMEONE YOU KNOW IS ONE OF THOSE PEOPLE, IS BECAUSE THE FEAR MONGERING AND MISCONCEPTIONS ABOUT WHO A MARIJUANA USER IS, OR HOW IT WOULD IMPACT THEIR LIVES SIMPLY AREN'T SUPPORTED BY REALITY.

[00:05:03]

THERE HAS BEEN DECADES UPON DECADES OF RESEARCH DONE IN CITIES AND STATES ACROSS THE US THAT HAVE EITHER DECRIMINALIZED OR FULLY LEGALIZED IT, AS WELL AS ENTIRE COUNTRIES, INCLUDING OUR NEIGHBOR TO THE NORTH, CANADA.

THE DATA IS ALL OUT THERE FOR ANYONE WITH THE OPEN MINDEDNESS TO TAKE IN AND CONSIDER INFORMATION THAT MAY OR MAY NOT CHALLENGE YOUR PRECONCEIVED NOTIONS.

SO I DIDN'T COME TO PRESENT THAT DATA TO YOU ALL HERE TODAY, NOR DID I COME HERE TO CHANGE ANYONE'S MIND ON THE MATTER.

WHAT I CAME HERE TO DO TODAY IS TO ADVOCATE FOR THE ISSUE, TO GO TO THE BALLOT FOR THE CITIZENS OF LUBBOCK TO VOTE AND DECIDE ON.

AND OUR REASONING IS VERY SIMPLE.

WHETHER YOU FEEL LIKE YOU KNOW SOMEBODY WHO UTILIZES MARIJUANA OR NOT, AND REGARDLESS IF YOU FEEL THAT THOSE WHO DO HAVE VALUE OR NOT.

THIS ISSUE, THIS ISSUE TOUCHES THE LIVES OF MANY OF OUR CITIZENS AND THEREFORE IS A LARGER ISSUE THAN THE SEVEN OF YOU SERVING ON THE DAIS.

LUBBOCK COMPACT HAS THE DATA, AND THERE ARE CITIZENS WHO CARE DEEPLY ABOUT THIS ISSUE AND THE OUTCOME OF THIS PETITION INITIATIVE IN EVERY AREA OF THE CITY.

THERE ARE ALSO ANYWHERE BETWEEN 600 TO 700 OF OUR CITIZENS EVERY YEAR THAT HAVE THEIR LIVES DISRUPTED AND IN SOME CASES, DERAILED BY ARRESTS FOR SMALL AMOUNTS OF MARIJUANA.

THESE ARRESTS TAKE UP OUR LIMITED LAW ENFORCEMENT RESOURCES AND ADD TO THE BACKLOG OF CASES THAT OUR COUNTY DA'S OFFICE HAS TO DEAL WITH WHILE SIMULTANEOUSLY DEALING WITH PROSECUTOR SHORTAGES.

ALL OF THIS FOR SOMETHING THAT ISN'T IMPACTING OUR COMMUNITIES AND ALL THE NEGATIVE WAYS WE'RE TOLD THAT IT WILL.

IT'S A WASTEFUL AND UNNECESSARY USE OF CITY RESOURCES.

AND BECAUSE OF THESE REASONS AND THE IMPACT THAT THIS ISSUE HAS ON SO MANY OF OUR CITIZENS, WE DON'T BELIEVE THAT THE DECISION, THE DECISION SHOULD FALL ON YOU OR ME OR ANY ONE CITIZEN. IT SHOULD GO TO A VOTE OF THE CITIZENS ACROSS THE CITY SO THAT ALL OF US CAN MAKE OUR VOICES TRULY AND OFFICIALLY HEARD ON THIS ISSUE.

WITH THAT PROCESS DECIDING THE OUTCOME.

THANK YOU ALL. THANK YOU, MR. HERNANDEZ. NEXT, WE HAVE AN.

ON 5.16.

OKAY. GOOD AFTERNOON COUNCIL.

MY NAME IS ANNE KEEL AND I'M A PART OF FREEDOM ACT.

LUBBOCK. I'M A MOTHER.

I'M A HEALTHCARE PROVIDER, GRADUATE STUDENT, AND A STUDENT AT UNIVERSITY OF NEW MEXICO, TAKING A CANNABIS CERTIFICATION PROGRAM SPECIALIZING IN HEALTH CARE AND MEDICINE.

AND I'M ALSO A MILITARY FAMILY.

TEXAS IS HOME TO NEARLY 1.6 MILLION VETERANS OF THE ARMED FORCES, WHO REPRESENT 7.94% OF THE ADULT POPULATION, HIGHER THAN THE NATIONAL AVERAGE OF 6.6%.

SOME OF THESE MEN AND WOMEN HAVE SEEN THINGS WE CIVILIANS COULD NEVER BEGIN TO IMAGINE, AND THEY OBTAINED MARIJUANA TO HELP MANAGE THEIR PTSD, ANXIETY, CHRONIC PAIN, ET CETERA THAT ARE LEGALLY GIVEN TO THEM THROUGH THE COMPASSIONATE USE PROGRAM IN TEXAS.

THE PROGRAM HAS NUMEROUS DIAGNOSES FOR US TEXANS TO USE LOW LEVELS OF THC, SPECIFICALLY 1% OR LESS.

SPECIFICALLY MY WIFE, WHO HAS HER MEDICAL CARD FOR THE PAST EIGHT YEARS, AND WITH HER USAGE OF MEDICAL MARIJUANA, SIMPLE RESEARCH ON THE EFFECTS.

MEDICALLY, SHE HAS BEEN SEIZURE FREE FOR EIGHT YEARS.

MY SON'S FATHER HAS ALSO BEEN ON TWO TOURS TO AFGHANISTAN AND SUFFERS POST-TRAUMATIC STRESS, AND HAS ALSO OBTAINED HIS MEDICAL CARD WITH THE HELP OF THE VA.

AND HOW HAS CONTROL OF HIS NIGHTMARES AND PARANOIA FOR THE LAST NINE YEARS? THEY SHOULD NOT HAVE TO FEAR BEING PULLED OVER WITH CANNABIS THAT IS GIVEN TO THEM BY THE LAW FOR THEIR MEDICAL CONDITIONS.

STATISTICS HAVE SHOWN TIME AND TIME AGAIN THE POSITIVE BENEFITS OF MARIJUANA.

WE ARE NOT ASKING YOU TO DECRIMINALIZE POUNDS OF MARIJUANA OR NOT PROTECT OUR CITY, BUT SIMPLY CONSIDER THE HARD WORK THAT WE'VE ACCOMPLISHED WITH HAVING SIGNERS OF OUR PETITION, RANGING FROM THE AGES OF 18 ALL THE WAY UP TO 90 WITH HAVING JUDGES, LAWYERS, ATTORNEYS, LPD AND SHERIFF DEPUTIES, AS WELL AS PEOPLE WANTING THIS FOR THEIR OWN PERSONAL REASONS.

WE DO NOT BELIEVE RESOURCES SHOULD BE WASTED ON HOUR LONG PAPERWORK FOR A SIMPLE POSSESSION UNDER FOUR OUNCES.

FIVE OTHER CITIES HAVE ALREADY DECRIMINALIZED MARIJUANA UNDER CERTAIN OUNCES AS WELL.

LPD HAS BIGGER ISSUES TO WORRY ABOUT, LIKE THE LACK OF PHONE CONNECTIONS THAT ARE NOT UP TO PAR AND LACK OF STAFF.

THE STIGMA BEHIND MARIJUANA HAS CHANGED DRAMATICALLY, AND PERSONAL RESEARCH BEHIND IT HAS SHOWN POSITIVE EFFECTS THAT HAS ON NUMEROUS HEALTH ISSUES.

YOU DO NOT HAVE TO KNOW WHAT BATTLES PEOPLE ARE FACING SILENTLY EVERY DAY, NOR CAN SOME PEOPLE ALSO AFFORD A 299 MEDICAL CARD FEE THAT MUST BE PAID PRIOR TO THEIR APPOINTMENT.

SCIENCE OUTWEIGHS OPINIONS EVERY SINGLE TIME.

I ALSO ASK THAT YOU TAKE TIME PERSONALLY TO DO YOUR OWN RESEARCH, AS FREEDOM ACT HAS SHARED HEAT MAPS, AGE STATISTICS OF OUR VOTERS, AS WELL AS MANY OTHER USEFUL INFORMATION WHILE ON OUR 60 DAY JOURNEY.

THE FACTUAL EVIDENCE LINKED TO MARIJUANA IS SIGNIFICANTLY SUCCESSFUL.

THANK YOU. THANK YOU.

MS. GILL. ALL RIGHT.

[4. Minutes]

WE'LL NOW MOVE TO AGENDA ITEM FOUR.

NUMBER FOUR. IT'S THE MINUTES.

IF I COULD HAVE A MOTION ON 4.1.

THANK YOU, MS. MARTINEZ.

GARCIA. SECOND BY MR. MASSENGALE. ALL IN FAVOR OF APPROVAL OF 4.1, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION CARRIES SEVEN ZERO ON 4.1.

[5. Consent Agenda - Items considered to be routine are enacted by one motion without separate discussion. If the City Council desires to discuss an item, the item is removed from the Consent Agenda and considered separately.]

NEXT WE HAVE THE.

WE WILL TAKE UP THE CONSENT AGENDA.

THE CONSENT AGENDA IS ITEMS 5.1 THROUGH 5.17.

IS THERE A MOTION TO APPROVE THE CONSENT AGENDA 5.1 THROUGH 5.17.

[00:10:01]

THANK YOU, MISS JOY. SECOND, MISS MARTINEZ GARCIA, ALL IN FAVOR OF APPROVAL OF THE CONSENT AGENDA 5.1 THROUGH 5.7, PLEASE SAY AYE.

AYE. ANY OPPOSED? ALL RIGHT. MOTION CARRIES SEVEN ZERO.

WE WILL NOW MOVE TO AGENDA.

[1. Ordinance Single Reading - Finance: Consider an ordinance of the City of Lubbock, Texas, authorizing the issuance and sale of City of Lubbock, Texas, Tax Notes, in one or more series; levying a tax in payment thereof; and enacting other provisions relating to the subject.]

THE REGULAR AGENDA.

AND WE GET TO START OFF MR. BLUE WITH AGENDA ITEM 6.1.

THIS IS A SINGLE READING ON FINANCE.

GOOD AFTERNOON, MAYOR, COUNCIL.

SO, ITEM 6.1.

YES. IS THE ANNUAL TAX NOTE ISSUANCE.

IF YOU'LL RECALL, THROUGHOUT ALL OF OUR BUDGET WORKSHOPS, WE TALK ABOUT CERTAIN LARGE EQUIPMENT AND CERTAIN PROJECTS THAT NEED TO BE DEBT FINANCED. AND WE IDENTIFY AT THAT TIME KIND OF THE MECHANISM THAT WE'RE GOING TO ISSUE THOSE.

SO, THESE ARE THE PROJECTS AND THE EQUIPMENT FOR THE TAX NOTE, WHICH IF YOU'LL RECALL FOR A TAX NOTE, HAS A STATUTORY MAXIMUM OF SEVEN YEARS MATURITY.

SO, FOR SOME OF OUR SHORTER LIFE PROJECTS OR OUR SHORTER LIFE VEHICLES, THIS IS A LITTLE BIT BETTER FINANCING MECHANISM TO MATCH THAT THAT USEFUL LIFE OF THAT PROJECT OR THAT EQUIPMENT TO THE LIFE OF THE DEBT.

SO RIGHT NOW, WE'RE GOING TO FOR THE 2023 TAX NOTES, WE'RE LOOKING AT 10.9 MILLION, 6 MILLION OF THAT IS GOING TO BE FOR ONE STREET PROJECT THAT IS TIED TO THE GATEWAY FUND, IF YOU'LL RECALL THAT ONE.

SO THAT 6 MILLION WILL BE PAID BACK FROM THE FRANCHISE PORTION OF THE FRANCHISE.

FEES THAT COME TO THE CITY OF LUBBOCK.

AND THE OTHER 4.9 IS GOING TO BE A LOT OF YOUR SOLID WASTE VEHICLES.

THESE ARE DONE THROUGH A COMPETITIVE BID PROCESS LED BY RBC CAPITAL.

OUR FINANCIAL ADVISORS AND THEY ARE HERE TODAY TO GO OVER SOME OF THE RESULTS.

THIS WAS PUT OUT A COUPLE OF WEEKS AGO.

BIDS WERE DUE BACK YESTERDAY AT 2:00.

SO, WE HAVE SOME MONEY TO AWARD TO.

GOOD AFTERNOON, MAYOR AND COUNCIL.

GOOD TO SEE YOU ALL AGAIN.

I APPRECIATE THAT COMPREHENSIVE TEE UP THERE BY MR. KOSTELICH. I'VE GOT A COUPLE OF THINGS WE'LL GO OVER.

WE'RE ACTUALLY GOING TO HAVE ANOTHER AGENDA ITEM THAT RELATES TO FINANCE, AND I THINK I'LL MAKE COMMENTS AROUND THE MARKETPLACE AT THAT POINT IN TIME.

IT SEEMS TO BE MORE CONSISTENT WITH IF THAT'S OKAY.

UM, LET'S SEE HERE.

THAT WAY YOU HAVE TO SCROLL.

OKAY. GET MY BEARINGS HERE.

OKAY. SO, WE CONDUCTED A COMPETITIVE PROCESS YESTERDAY FOR THE TAX NOTES THAT MR. KOSTELICH WENT THROUGH. AND WE HAD A ROBUST ENVIRONMENT OF BANKS THAT LOOKED AT IT, HAD A LOT OF QUESTIONS AROUND IT AND A LOT OF GOOD COMMENTARY.

OBVIOUSLY THERE'S BEEN SOME SOME RAPID CHANGES IN THE MARKETPLACE.

SO, WE FELT LIKE A NUMBER OF THE BIDDERS COULDN'T GET THEIR FEET ON THE GROUND QUICK ENOUGH TO PERHAPS BE MEANINGFUL IN THE TERMS OF PROVIDING A BID.

BUT WE DO HAVE THREE QUALIFIED BIDS, AND I THINK THEY'RE VERY GOOD BIDS.

THERE'S SOME DISPARITY BETWEEN THEM AMONGST CALL PROVISIONS AND RATES, CERTAINLY, BUT WEBSTER BANK, A BANK THAT YOU ALL HAVE DONE BUSINESS WITHIN THE PAST, CAME OUT AS THE LEAD BIDDER AT 4.57%.

IT'S A VERY CLEAN WAY TO DO BUSINESS IN TERMS OF FEE STRUCTURES.

THERE'S VERY LITTLE THAT THEY TAKE ON IN TERMS OF ADDITIONAL FEES.

THIS REALLY IS A PIECE OF PAPER THAT THEY BOOK ON THEIR BALANCE SHEET THAT THEY ENJOY THE TAX-EXEMPT INCOME FROM.

SO, WE'VE GOT SOME OF THE INFORMATION ABOVE THE TABLE THAT I JUST REFERENCED BELOW.

ABOVE THAT, AND I WAS TALKING TO MR. ATKINSON OUT IN THE HALLWAY.

THIS IS A PROGRAM WE INSTITUTED SEVEN YEARS AGO WHEN HE ARRIVED AT THE CITY OF LUBBOCK TO ACCOMMODATE ALL OF THE PROJECTS THAT MR. KOSTELICH WENT THROUGH. AND IT'S WORKED OUT QUITE WELL FOR A NUMBER OF REASONS, FINANCIALLY.

AND THEN CERTAINLY FROM A FLEXIBILITY STANDPOINT, WITH YOU ALL ACTUALLY TAKING TITLE TO THESE VEHICLES AND PIECES OF EQUIPMENT, IT ALLOWS YOU TO BE MORE FLEXIBLE AND NIMBLER AS YOU CONDUCT YOUR BUSINESS.

SO, IT'S WORKED OUT QUITE WELL.

MR. KOSTELICH WENT THROUGH THE BREAKDOWN OF THE OF THE 10.9 MILLION, ROUGHLY 4.8 MILLION OF THAT IS FOR SOLID WASTE FLEET PURCHASES.

AND THEN THE BALANCE OF 6 MILLION IS AROUND STREET IMPROVEMENTS.

WE'VE GOT THE COST OF ISSUANCE OUTLINED THERE.

I WANTED TO ALSO SAY THAT JERRY KYLE AND TAYLOR RAYMOND, WITH ORRICK, HERRINGTON AND SUTCLIFFE ARE HERE TO ANSWER ANY LEGAL QUESTIONS, BUT I THINK THIS SUMMARIZES IT AND IN FAIRLY SHORT ORDER.

I DO HAVE THE NUMBERS ON THIS NEXT PAGE THAT SHOW YOU WHAT THE AMORTIZATION WILL LOOK LIKE ON THE FAR RIGHT, AND THEN, STATISTICALLY SPEAKING, IN THE MIDDLE OF THE PAGE, THE ATLANTIC. AND AGAIN, THAT ACCOUNTS FOR THE COSTS OF ISSUANCE, THE RATE AND SO FORTH IS 4.75%, ARGUABLY HIGHER THAN WHAT YOU ALL

[00:15:01]

HAVE DONE IN THE PAST. BUT THAT'S THE RATE ENVIRONMENT THAT WE LIVE IN.

SO, I WAS PLEASANTLY SURPRISED WITH WHAT WE GOT.

AND I CAN ANSWER ANY QUESTIONS NOW.

MAYOR. WAS THAT ISSUANCE DATE? THAT WOULD BE THE DECEMBER 5TH ISSUANCE DATE AT THE 4.75.

CORRECT. AND THEN THE MATURITY DATE WOULD BE FEBRUARY OF 2030.

2031.

2031? YES.

ALL RIGHT, THAT'S ALL I'VE GOT.

ANY OTHER QUESTIONS ANYBODY HAS THIS TIME, I'LL SAY THAT IT'S THE ACTUAL LAST MATURITY.

MAYOR, I APOLOGIZE, IS NOVEMBER 15TH OF 2030, WHICH FALLS IN YOUR FISCAL 31 YEAR? OKAY. YEAH. CORRECT.

ANY OTHER QUESTIONS? ALL RIGHT. YOU'RE UP BACK UP HERE AT 6.2.

IS THAT RIGHT? YES, SIR.

LET'S GO AHEAD AND TAKE UP 6.1.

AND THEN WE'LL GET HARVEY UP HERE AND THEN RUN YOU ALL BACK THROUGH ON 6.2.

IS THERE A MOTION TO APPROVE 6.1.

THANK YOU. THANK YOU, MR. MASSENGALE. THANK YOU, MISS JOY.

ARE THERE ANY OTHER DISCUSSION QUESTIONS OF BLUE OR STAFF? ALL RIGHT. ALL IN FAVOR OF APPROVAL OF 6.1, PLEASE SAY AYE.

AYE. ANY OPPOSED? ALL RIGHT. MOTION CARRIES ON 6.170.

ALL RIGHT, 6.2.

[2. Ordinance Single Reading - Lubbock Power & Light: Consider an ordinance providing for the issuance of City of Lubbock, Texas, Electric Light and Power System Revenue Bonds; providing for the award of the sale thereof in accordance with specified parameters; approving the official statement; approving execution of a purchase contract; and enacting other provisions relating thereto.]

HARVEY WILL TEE YOU UP.

THANK YOU FOR HAVING ME UP. IT'S KIND OF A SPECIAL TIME FOR LPL.

WE'RE GOING TO BE BORROWING A LITTLE UNDER $68 MILLION.

WE'RE LOOKING TO PAY A $65.7 MILLION PAYMENT TO SOUTHWESTERN PUBLIC SERVICE, PARTIAL REQUIREMENTS TO EXTINGUISH A NEGOTIATED SETTLEMENT FOR THAT CONTRACT.

AND THAT'S WHAT THIS THIS ISSUANCE IS ABOUT.

THAT WILL BE WE'LL BE LOOKING TO MAKE THAT PAYMENT TO SPS ON JANUARY 15TH.

AND THAT'LL BE THE FINAL HURDLE FOR US BEFORE ENTERING INTO RETAIL MARKET COMPETITION.

SO THAT'S REALLY MY PIECE OF IT.

ALL RIGHT, MAN.

OH, WELL DONE, HARVEY.

OH, LOOK AT YOU.

LET ME GET YOU. GOT IT.

OH, YOU GOT TO GET OUT OF.

THERE WE GO. PERFECT. IT WORKS.

OKAY. FANTASTIC.

HERE I AM AGAIN, MAYOR.

THANK YOU ALL AGAIN FOR INDULGING ME.

I AM GOING TO GO THROUGH SOME INFORMATION ABOUT THE MARKET.

I APPRECIATE THE INTRODUCTION THERE.

AND YOU ALL HAVE SEEN THIS TOPIC BEFORE.

WE GOT REAL CLOSE TO DOING THIS AT ONE POINT, NOT ALL THAT LONG AGO, AND HAD A LITTLE BIT OF A STOP IN PLAY.

BUT WE'RE BACK TO TALK ABOUT THIS ACTUAL FINANCING NOW.

BUT BEFORE I DO THAT, AS I ALWAYS DO, I JUST WANTED TO HIT THE MARKETPLACE VERY QUICKLY.

YOU KNOW, THE PARADIGM HAS SHIFTED SINCE I WAS LAST HERE.

THERE'S A LOT OF ARGUMENT AROUND THE FACT THAT WE HAVE BEEN ABLE TO, I SAY WE SOMEONE OUT THERE HAS BEEN ABLE TO MAINTAIN A VERY ROBUST AND STRONG ECONOMIC ENVIRONMENT IN THE UNITED STATES, AT THE SAME TIME THAT THEY SOFTEN SOME OF THE EMPLOYMENT FIGURES AND INFLATION AND THE THINGS THAT MATTER SO MUCH TO TO OUR FEDERAL RESERVE.

YOU KNOW, IT'S STILL MARKED BY SIGNIFICANT AMOUNTS OF VOLATILITY, BOTH IN THE EQUITY MARKETS AND IN THE BOND MARKETS.

AND SO, WHAT'S BEFORE YOU TODAY IS ACTUALLY A PARAMETERS ORDER THAT WOULD ESTABLISH A WAY FOR US TO FIND A SPOT IN THE MARKET THAT WORKS BEST FOR YOU ALL, AND TO GIVE US THE LATITUDE TO EXERCISE THAT FROM A TIMING STANDPOINT.

SO, YOU KNOW, CHAIR POWELL HAD SOME COMMENTS LAST WEEK THAT WERE, I THINK, WELL RECEIVED IN THE BOND MARKET.

WE HAD A SIGNIFICANT RALLY IN TREASURIES AND THE MUNICIPAL BOND MARKET.

YOU SAW EQUITIES FLY HIGH AGAIN.

AND SO, THERE IS SOME, I THINK, RELATIVE CALM AND EXCITEMENT OVER THE FACT THAT MAYBE THE FED IS DONE WITH WHAT THEY'RE GOING TO DO.

I SAID MAYBE I DON'T KNOW; THEY MAY COME BACK BEFORE THE END OF THE YEAR AND DO SOMETHING.

BUT I THINK THE CONSENSUS IS THAT THEY ARE DONE IN 2023 AND THEY'LL TAKE ANOTHER LOOK AT IT IN 2024, BUT THEY'LL CONTINUE TO MONITOR DATA AS THEY GO FORWARD AND MAKE DECISIONS APPROPRIATELY. I THINK WE'RE IN A REALLY GOOD SPOT HERE.

I WANTED TO SPEAK SPECIFICALLY TO THE MUNI MARKET, WHERE YOU ALL OPERATE AND WHERE WE WILL BE ISSUING THESE OBLIGATIONS.

THIS HAS BEEN A, YOU KNOW, A YEAR THAT IS BELOW AVERAGE VOLUME.

I'VE SAID IT BEFORE, AND JUST TO REMIND YOU, OUR MARKET NEEDS ABOUT 500 BILLION IN SUPPLY YEAR JUST TO SATISFY REINVESTMENTS.

WE'RE GOING TO END UP SOMEWHERE JUST OVER 300 MILLION THIS YEAR.

AND THAT'S JUST NOT ENOUGH.

AND THAT'S PUT AN ARTIFICIAL CAP THROUGH THE RULE OF SUPPLY AND DEMAND ON WHERE THE RATE STRUCTURES HAVE GONE FROM 0 TO 30 YEARS.

[00:20:03]

AND IT'S BEEN QUITE HELPFUL TO OUR ISSUER CLIENTS, AND I THINK YOU'LL ENJOY THAT AS WELL.

IN THE LOWER LEFT-HAND CORNER OF THIS PAGE, I PUT UP MUNICIPAL MARKET DATA.

AND AGAIN, THIS IS SORT OF MY DOW JONES.

THIS IS SOMETHING THAT'S PUBLISHED EVERY DAY AND GIVES ME A SENSE OF WHERE GENERAL MUNIS LIE.

THIS IS NOT INDICATIVE OF WHAT YOU'RE BORROWING.

COSTS MIGHT BE.

BUT AS YOU CAN SEE IN THE GOLD BAR THERE, YOU KNOW, IT'S A RELATIVELY FLAT YIELD CURVE.

THE STRUCTURE AND SHAPE OF THAT WILL CHANGE AS WE MOVE FORWARD, BUT IT'S RIGHT ON TOP OF THE 15-YEAR AVERAGE, AND IT'S RIGHT ON TOP OF WHERE WE ONCE WERE A YEAR AGO TODAY. SO, THINGS REALLY HAVEN'T CHANGED ALL THAT MUCH IN MUNI LAND UP AGAINST OTHER SECTORS, CERTAINLY EQUITIES AND OTHER DEBT SECURITIES, MORTGAGE BACKS, YOU KNOW, HAVE GOTTEN JUST COMPLETELY HAMMERED.

SO, THERE'S ALL SORTS OF OTHER SECTORS THAT HAVE SUFFERED.

BUT MUNICIPALS IS NOT ONE OF THEM.

AND JUST TO PUT A FINE, YOU KNOW, SORT OF EXCLAMATION POINT ON THIS, I ALWAYS LIKE TO LOOK AT THIS.

I KNOW WE TALK ABOUT THIS EVERY TIME, BUT I THINK FOR YOUR CONSTITUENCY, IT'S IMPORTANT THAT THEY KNOW HISTORICALLY WHERE WE FALL, THE BOND BUYER INDEX IS AT THE TOP OF THIS PAGE. IT GOES BACK TO 1961.

SO MANY, MANY YEARS OF DATA THERE.

THE RATE THIS WEEK ON THIS PARTICULAR INDEX WAS 4.17.

AND THAT IS BETTER THAN 71.

CALL IT 72% OF THE TIME SINCE 1961.

SO HISTORICALLY SPEAKING, YOU'RE IN A GOOD SPOT IF YOU'RE GOING TO COMPARE YOURSELF TO WHERE WE WERE IN THE PANDEMIC, THAT'S A DIFFERENT STORY.

BUT THAT'S REALLY AN OUTLIER AND AN UNFAIR COMPARISON.

SO, I FEEL REALLY GOOD ABOUT WHERE THINGS STAND.

AND I THINK THE MARKET'S IN A GOOD SPOT TO DO THIS TRANSACTION.

SO, I'LL JUMP INTO JUST THE OVERVIEW OF THE PLAN OF FINANCE.

HARVEY DID A GREAT JOB AGAIN AT TEEING THIS UP, SO I WON'T GO THROUGH ALL OF THIS, BUT THIS WILL PROVIDE THE SETTLEMENT PAYMENT TO SBS THAT HE SPOKE OF. THE AMOUNT IS LISTED THERE IN BULLET TWO.

AND YOU CAN SEE HOW THAT IS PAID DOWN IN TIME.

AS WE MOVE TOWARDS THE END OF THIS YEAR, IT'S ROUGHLY PAID DOWN $61,000 FOR EACH DAY THAT THE CLOCK TICKS AS WE GET CLOSER TO DECEMBER 31ST.

SO, THE ULTIMATE AMOUNT THAT WILL BE FINANCED IS IT'S ON THE NEXT PAGE.

SO, I'LL GET TO THAT THEN.

I'M SORRY. THERE IT IS.

65.666 MILLION.

WE GOT THE PARAMETERS OUTLINED FOR YOU IN THE CHART AT THE LOWER PORTION OF THE PAGE THERE.

AND THAT'S SOMETHING I'LL WORK WITH MR. HALL ON, MR. KOSTELICH.

CERTAINLY. MR. ATKINSON, AS WE GET READY TO POSSIBLY GO TO MARKET.

AND I'LL TALK ABOUT TIMING AROUND THAT IN JUST A LITTLE BIT.

JUST A LITTLE MORE INFORMATION, AND THEN I'LL GET INTO WHAT WE SEE AS THE POTENTIAL RESULTS OF THE TRANSACTION.

MOST NOTABLY, WE'VE SPENT QUITE A BIT OF TIME WITH LPL AND YOUR CITY TEAM ON THE PHONE WITH FITCH, S&P AND MOODY'S GOING THROUGH YOUR RATINGS ON THIS, I THINK BY AND LARGE.

THEY'RE HAPPY ABOUT WHERE THINGS STAND AND THEY'VE BEEN CAUTIOUS OBSERVERS OF THIS PROCESS, I WOULD SAY OVER A LONG PERIOD OF TIME, BECAUSE THIS PROCESS IS, YOU KNOW, WROUGHT WITH REGULATORY APPROVALS AND LOGISTICS AND CAPITAL EXPANSION AND ALL SORTS OF THINGS THAT GET THEM, YOU KNOW, GET THEIR ATTENTION, CERTAINLY.

AND I WOULD SAY THEY'RE IN A REALLY GOOD SPOT NOW.

AND THEY'RE NOTABLY PLEASED WITH THE COMMUNICATION THAT THE CITY HAS MAINTAINED WITH EACH OF THESE AGENCIES.

AS YOU'VE GONE THROUGH THAT PERIOD OF TIME.

I KNOW WE'RE INVOLVED IN THAT.

WE HELPED SHEPHERD THAT, BUT IT REALLY IS A TRUE TESTAMENT TO THE FACT THAT YOUR FINANCE TEAM AND THOSE THAT YOU'VE HIRED TO RUN THE CITY ARE DOING AN INCREDIBLE JOB OF MAKING SURE THAT THEY DO WHAT YOU WOULD WANT THEM TO DO, AND THAT IS TO STAY ON TOP OF THINGS.

SO, I JUST CAN'T SAY ENOUGH ABOUT THE COOPERATION WE'VE GOTTEN OUT OF THEM.

THE OTHER ASPECTS OF THIS PAGE ARE SOME OF THE SAME THINGS THAT WE GO THROUGH EVERY TIME THE COST OF ISSUANCE, PROJECTED UNDERWRITERS DISCOUNT.

WE USE NON-INSURED TAX-EXEMPT RATES AS OF OCTOBER 30TH, BUT WE HAD A CUSHION OF 40 BASIS POINTS SO THAT WE'VE GOT SOME WIGGLE ROOM TO OPERATE WITHIN GIVEN THE VOLATILE NATURE OF THE MARKET.

AND WE WILL COME BACK TO YOU ONCE THIS IS FINALIZED, WITH RESULTS, SO THAT YOU CAN SEE THOSE.

AND I'LL RELY ON YOUR CITY STAFF TO GET THAT TO YOU.

BUT JUST KNOW I'M HAPPY TO COME BACK AND ADDRESS YOU ALL AS WELL.

AND THEN FINALLY ON THIS PAGE WE HAVE INFORMATION ABOUT THE FINANCING ON A PROJECTED BASIS, RIGHT HAND SIDE, THE ANNUAL DEBT SERVICE ON A PROJECTED BASIS.

AND THEN IN THE MIDDLE OF THE PAGE, THIS IS THE STATISTICAL DATA.

AND I'LL GO BACK TO THAT HIGHLIGHTED LINE THERE.

TRUE INTEREST COST.

WE TALKED ABOUT IT ON THE TAX NOTES MOMENTS AGO.

THIS IS 4.82%.

IF YOU BACK THE 40 BASIS POINTS OUT IT'S 4.42%.

SO, ALL IN ALL I THINK A GOOD RESULT.

WE'LL SEE WHERE THINGS SHAKE OUT WHENEVER WE GET TO MARKET.

[00:25:02]

WE'VE GOT SOME WORK YET TO DO, BUT ON A PROJECTED BASIS I THINK IT'S LOOKING REALLY NICE.

THIS IS THIS IS A LOT OF STUFF.

AND THIS IS AN EYE TEST.

CERTAINLY, IT'S HARD TO SEE THAT.

BUT THIS IS OUR TIMETABLE OF EVENTS, MOST OF WHICH WE'VE ALREADY CHOPPED THROUGH.

WE'RE SORT OF DOWN TO APPROVALS FROM YOU ALL AND THEN THE ABILITY TO ENTER THE MARKETPLACE.

BUT IT DOES GIVE YOU A SENSE OF ALL THE THINGS THAT CITY STAFF AND STAFF HAVE DONE ALONG THE WAY.

WE'LL TRY TO GET THIS TRANSACTION IN THE MARKET ON OR ABOUT THE 5TH OF DECEMBER.

SO THAT'LL BE BETWEEN THANKSGIVING AND CHRISTMAS.

THERE'S A WINDOW OF TIME IN THERE THAT WE'LL TRY TO TARGET.

WE CAN MOVE THINGS AROUND A DAY OR TWO OR EVEN A WEEK IF WE NEED TO, BUT WE'LL TRY TO CATCH THE BEST MARKET WE CAN FOR YOU, AND THEN WE'LL TRY TO CLOSE THE TRANSACTION JUST BEFORE THE NEW YEAR ON THE 28TH OF DECEMBER.

AND THEN I BELIEVE YOU'LL MAKE YOUR TERMINATION PAYMENT IN THE MONTH OF JANUARY.

WE HAVE IN HERE AN APPENDIX.

AND I WON'T GO THROUGH THIS, BUT IT'S IT ANSWERS THE QUESTION AROUND, SHOULD WE FINANCE THIS TODAY OR SHOULD WE PAY THIS OVER TIME.

AND THAT'S AN ANALYSIS THAT WE RAN FOR YOU.

AND IT'S A PRESENT VALUE ANALYSIS.

AND I THINK IT'S A IT'S AN INTERESTING ONE.

AND THE ANSWER IS OBVIOUSLY WE SHOULD FINANCE THIS TODAY.

I WOULDN'T BE STANDING HERE IF IT WEREN'T.

BUT IT DOES TAKE INTO CONSIDERATION THE PAYMENTS THAT WOULD OTHERWISE BE DUE UNDER THE PARTIAL REQUIREMENTS CONTRACT VERSUS THAT OF THE FINANCING DEBT SERVICE THAT YOU'LL BE PAYING.

AND SO YOU CAN TAKE THIS HOME AND TAKE A LOOK AT IT.

IF YOU HAVE QUESTIONS ABOUT IT, CALL ME AND I CAN WALK YOU THROUGH IT.

BUT IT'S A PRETTY STANDARD ANALYSIS.

IT MAY LOOK LIKE IT'S FAIRLY COMPLICATED, BUT IT'S PRETTY STANDARD.

YOU JUST PRESENT VALUE BOTH OF THOSE CASH FLOWS BACK TO TODAY USING THE BOND YIELD ARBITRAGE YIELD ACTUALLY.

AND YOU GET YOUR ANSWER.

SO, IT'S TO THE BENEFIT OF THE CITY OF JUST ABOUT 1,000,007.

THAT WILL CHANGE OBVIOUSLY WHEN THE MARKET MOVES BECAUSE THIS HAS GOT 40 BASIS POINTS IN IT.

SO, IT COULD BE BETTER MILLION NINE, SOMETHING LIKE THAT, I WOULD GUESS.

BUT I WANTED YOU TO HAVE THE BENEFIT OF HAVING IT AND KNOWING IT, IT'S IN YOUR BOOK SO THAT IF SOMEONE WERE TO ASK, WHY DID WE FINANCE THIS? WHY DIDN'T WE JUST PAY IT THROUGH? YOU'VE GOT THE ANSWER.

SO, I WILL STOP THERE AND ANSWER ANY QUESTIONS.

MAYOR. THANK YOU, SIR.

ANY QUESTIONS AT THIS TIME? MS. JOY? IF ALL OF US JUST, OR MOST OF US JUST RETURNED FROM A.

A DISCUSSION BY SOMEONE FROM THE FEDERAL RESERVE.

AND I HAD TWO QUESTIONS ONE.

DISTINGUISH CORE INFLATION FROM THE GDP.

YEAH. SO, INFLATION IN AND OF ITSELF IS A MEASURE OF PRICE STABILITY.

AND IT'S MEASURED IN PERCENTAGE POINTS.

RIGHT. AND IT TAKES A BASKET OF GOODS AND SERVICES.

CORE INFLATION STRIPS OUT SOME OF THE SERVICE GOODS AND SERVICES.

AND WHICH ONES ARE THEY? OH BOY, HERE WE GO.

ENERGY AND HOUSING I CAME UP WITH THAT ON MY OWN.

ENERGY AND HOUSING I BELIEVE THAT'S RIGHT.

ARE STRIPPED OUT OF THAT.

AND THE AND THE THEORY THERE IS THAT THOSE TWO COMPONENTS OF INFLATION ARE THE MOST VOLATILE.

SO, IT'S DIFFICULT AT ANY POINT IN TIME TO GET A TRUE READ WITH THE VOLATILE NATURE OF THAT, MOSTLY DUE TO SPECULATION, SPECULATING ON REAL ESTATE MARKETS, SPECULATING IN THE COMMODITIES MARKET, THAT SORT OF THING.

SO, YOU STRIP THAT OUT.

THAT'S INFLATION.

GDP IS A MEASUREMENT OF GROWTH.

SO, IT'S ENTIRELY DIFFERENT THAN PRICE STABILITY.

IT'S A MEASURE OF GROWTH.

AND THAT'S AND IT'S AND IT'S THE OUTPUT OF THE COUNTRY OR THE STATE OR WHOEVER'S GDP YOU'RE MEASURING RIGHT NOW.

THE WORLD SAYS THAT THE UNITED STATES IS GROWING GDP WISE, AT A PACE THAT'S MORE THAN WHAT IT OTHERWISE SHOULD HAVE BEEN BASED OFF PREVIOUS PREDICTIONS.

RIGHT NOW, INFLATION HAS COME DOWN MUCH FASTER.

STRIP OUT CORE INFLATION THAN OTHERWISE WOULD HAVE OTHERWISE PEOPLE WOULD HAVE OTHERWISE IMAGINED SIX MONTHS AGO.

AND SO, I THINK BOTH OF THEM ARE IN A RELATIVELY GOOD SPOT AND THE ARROWS ARE POINTED IN THE RIGHT WAY.

I DON'T KNOW IF THAT'S WHAT THIS PERSON FROM THE FED SAID, BUT IF THEY DIDN'T THINK THEY WERE WRONG.

WELL, MY RECOLLECTION, SHE SAID THE CORE INFLATION WAS, I THINK MORE LIKE 5.9 OR SOMETHING.

YEAH, CORE INFLATION IS TYPICALLY ALWAYS HIGHER BECAUSE OF THE SPECULATIVE NATURE OF REAL ESTATE AND COMMODITIES.

MR. MCBRAYER. OH.

I'M SORRY. DID YOU HAVE A SECOND QUESTION? SHE'S GOING TO ASK YOU ANOTHER ONE.

IT'S YOUR NEXT EXAM FINAL.

THAT MAY BE THE BEST ONE I'VE GOT IN MY CAREER.

I'M NOT KIDDING. I HAD TO THINK REALLY HARD.

MR. MCBRAYER, SO MY QUESTION JUST FOR THE SOUND BITE.

[00:30:02]

IF PEOPLE DO ASK AGAIN, I THINK TO BE CLEAR WHY WE'RE FINANCING THIS OVERPAY AS YOU GO OR HOWEVER YOU WANT TO CALL, THAT IS WE SAVE ABOUT $1 MILLION.

IS THAT THE BOTTOM-LINE KIND OF WHAT WE CAN TELL THEM.

WHAT IS? YEAH.

IT'S SO YOU HAVE THE ADVANTAGE OF FINANCING THIS PAYMENT THROUGH THE TAX-EXEMPT BOND MARKET.

AND, YOU KNOW, THERE'S A THERE'S AN ADVANTAGE TO DOING THAT OVER CONVENTIONAL FINANCING, CERTAINLY.

AND YOU'VE GOT THE BENEFIT OF MORE TIME TO DO THAT.

AND SO, IT'S A SIMPLE PRESENT VALUE CALCULATION.

IT'S, YOU KNOW, A DOLLAR TODAY IS I MEAN I CAN WALK YOU THROUGH THE CALCULATION, BUT IT'S FROM A PRESENT VALUE STANDPOINT, IT IS THE WAY TO GO. THAT'S WHY WE PUT THAT IN HERE OKAY.

BECAUSE PEOPLE ARE ALWAYS WONDERING WHY WE ADD, YOU KNOW, QUESTION ADDING TO OUR DEBT EVEN IF IT'S LPL, YOU KNOW, DEBT.

BUT THERE'S A GOOD REASON FOR IT, A GOOD REASON FOR IT.

OKAY. THANK YOU. IT'S MORE LIKE A MILLION.

SEVEN SHOULD GO SEVEN.

OKAY. I HEARD YOUR FIGURE WRONG.

MILLION. NINE.

WE HAVEN'T YET LOCKED THAT IN.

WE'LL BE ABLE TO DEFINITIVELY DO THAT WHENEVER THE NUMBERS ARE SET AND THE BONDS ARE MARKETED.

AND WE CAN GIVE YOU A DEFINITIVE NUMBER THAT YOU CAN PRINT.

BUT IT'S NOT CHUMP CHANGE.

IT'S NOT CHUMP CHANGE. NO.

THANK YOU. ALL RIGHT.

THANK YOU, SIR. ALL RIGHT, 6.2.

ANY OTHER QUESTIONS? ALL RIGHT, NO MORE FINAL EXAM QUESTIONS.

ALL RIGHT. 6.2 IS BEFORE US.

IS THERE A MOTION TO APPROVE 6.2? THANK YOU, MISS JOY. SECOND, MS. MARTINEZ-GARCIA. ALL IN FAVOR OF APPROVAL OF 6.2, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION CARRIES SEVEN ZERO.

ALL RIGHT. WE'LL NOW NEXT MOVING TO 6.3.

[3. Public Hearing - Lubbock Power & Light: Hold a public hearing in City Council Chambers in Citizens Tower at 1314 Avenue K, to receive public input concerning amendments to the following sections of the Code of Ordinances, City of Lubbock, Texas: (i) Chapter 2, Division 12, Section 2.03.413(a): concerning the qualification of members for the Electric Utility Board; (ii) Chapter 2, Division 12, Section 2.03.415: concerning the description of the position of Director of Electric Utilities; (iii) Chapter 2, Division 12, Section 2.03.417: concerning requirements for the calculation and disbursement of funds from the general reserve and the calculation of franchise fee equivalent and PILOT rates; and (iv) to make minor wording changes to Chapter 2, Division 12, Sections 2.03.412-2.03.418. Following the public hearing, the City Council may consider an ordinance adopting these amendments.]

THIS IS THE PUBLIC HEARING ON SEPTEMBER 19TH OF 2023, THE IRB ADOPTED A RESOLUTION RECOMMENDING THAT WE AS A BODY CONSIDER THE ADOPTION OF CERTAIN AMENDMENTS. MR. ATKINSON. THANK YOU, MR. MAYOR. MR. HALL, DO YOU WANT TO TEE THIS UP OR WOULD YOU LIKE ME TO, I GUESS, MR. IVEY. JOE, I THINK I'LL GO AHEAD AND HAVE YOU GIVE AN EXPLANATION, AND THEN WE'LL OPEN THE PUBLIC HEARING AND HAVE YOU AVAILABLE UNDER 6.4, IF ANY OTHER QUESTIONS. SOUNDS GOOD.

GOOD AFTERNOON. GOOD AFTERNOON, MAYOR AND COUNCIL.

THE AGENDA ITEM FOR THIS PARTICULAR ORDINANCE EXPLAINS THIS SITUATION VERY, VERY WELL.

AND I DON'T WANT TO BELABOR THOSE KINDS OF ISSUES, BECAUSE WHAT YOU WHAT YOU READ IS EXACTLY WHAT IT IS THAT WE'RE LOOKING FOR.

I WOULD LIKE TO ADD A LITTLE BIT OF CONTEXT.

BACK IN THE LATE 90S, THE REST OF THE CITIES WERE ALREADY IN THE RETAIL MARKET.

THEY FIGURED OUT THAT WHEN THE INCUMBENT UTILITIES WERE NO LONGER GOING TO HAVE THE REVENUE FROM THE POWER SUPPLY PART OF THE EQUATION, THEY WOULD NOT HAVE NEAR THE REVENUE THAT THEY HAD HAD FROM FRANCHISE FEES.

SO, THEY SET ABOUT TO CHANGE THE FORMULA, WHICH IS EXACTLY THE GENESIS OF WHAT IT IS THAT WE'RE DOING.

SO, THEY CHANGED FROM A GROSS RECEIPTS' BASIS.

EVERYBODY WAS CHARGING ANYWHERE FROM 3% TO 6% GROSS RECEIPTS ALL ACROSS TEXAS.

AND THAT'S WHAT WE'RE DOING NOW.

WE'RE CHARGING 5%, BUT GROSS RECEIPTS FOR US IS GOING TO GET CUT BY TWO THIRDS WHEN WE GO INTO THE RETAIL MARKET.

SO, IT MAKES NO SENSE TO CONTINUE USING THAT AGAIN AND KEEP THE CITY WHOLE.

SO THAT'S WHY WE'RE REALLY PRESENTING THIS ORDINANCE CHANGE TODAY, SO THAT WE CAN MAKE THAT CONVERSION TO A KILOWATT HOUR BASIS, AND THAT WILL REMAIN CONSISTENT.

AND IT SHOULD REMOVE QUITE A BIT OF THE VOLATILITY TO THE CITY.

SO, THEY'LL KNOW WHAT THEIR MONEY IS GOING TO BE A LOT MORE FINELY TUNED THAN WHAT THEY WERE ABLE TO GET UP TILL NOW, I'LL SAY SO THAT THAT AND THEN SOME OTHER MODERNIZATION LANGUAGE. YOU KNOW, WE'RE CONVERTING JUST FROM A RESERVE MARGIN OF 90 DAYS TO USING WHAT THE MARKET LIKES IS A DAY'S CASH BASIS THAT WE CAN TRACK.

AND EVERYBODY UNDERSTANDS THAT AND RECOGNIZES THAT FROM THE FINANCIAL MARKETS.

AND IT MAKES A LOT EASIER TO REPORT, TOO.

AND THEN THE REST OF THE STUFF IS JUST KIND OF MINOR LANGUAGE CHANGES TO GET IT UP TO SPEED TODAY'S STANDARDS.

THANK YOU. APPRECIATE IT, JOE.

ALL RIGHT. WE'LL GET TO QUESTIONS WHEN WE COME BACK TO THE ACTUAL RESOLUTION OR THE ORDINANCE AMENDMENT ON 6.4.

BUT AT THIS TIME.

6.3 IS ACTUALLY A PUBLIC HEARING TO CONSIDER THE AMENDMENTS TO THE LUBBOCK CODE OF ORDINANCES IN REGARD TO AMENDMENTS TO THE ORDINANCE THAT GOVERNS LPL.

THE PUBLIC HEARING IS BEING CONDUCTED PURSUANT TO SECTION 2.03418 OF THE LUBBOCK CODE OF ORDINANCES.

SO AT THIS TIME, WE WILL HAVE A PUBLIC HEARING.

I WILL NOW OPEN THE PUBLIC HEARING, AND IF ANYONE WISHING TO SPEAK ON THE PROPOSED AMENDMENTS, YOU MAY STEP FORWARD NOW AND SPEAK AT THIS TIME.

ALL RIGHT. SEEING NONE, I WILL NOW CLOSE THE PUBLIC HEARING.

AND AT THIS TIME, CITY COUNCIL WILL CONSIDER THE AMENDMENTS, WHICH IS AGENDA ITEM 6.4, WHICH YOU ALL HAVE IN YOUR BACKUP.

[4. Ordinance - Lubbock Power & Light: Consider an ordinance amending Ordinance Article 2.03, Division 12 of the City of Lubbock Code of Ordinances, with regard to Amending the Membership and Qualifications of the Electric Utility Board Members; Amending the Qualifications of the Director of Electric Utilities; Amending the Disbursement of Electric Utility Funds from the General Reserve; Amending the Method of Amending Article 2.03, Division 12; Providing for a Penalty; Providing a Savings Clause; and Providing for Publication.]

[00:35:02]

AND WE ALSO HAVE JOEL AVAILABLE.

IF THERE'S ANY QUESTIONS OR ANY FURTHER QUESTIONS I WOULD ASK AT THIS TIME, IF WE HAVE A MOTION TO APPROVE.

6.4 THANK YOU, MR. MCBRAYER. THANK YOU, MR. MASSENGALE. ALL RIGHT.

IS THERE ANY DISCUSSION ON 6.4 OR ANY FURTHER QUESTIONS OF JOEL OR HIS TEAM? MS. JOY? VERY QUICKLY, SINCE WE DIDN'T HAVE ANYBODY UP HERE AT PUBLIC HEARING, WOULD YOU TELL ME ABOUT THE CHANGES IN THE QUALIFICATION OF MEMBERS FOR THE ELECTRIC UTILITY BOARD? ESSENTIALLY, WHAT WE DID WITH THAT LANGUAGE CHANGE WAS WE TOOK IT FROM THE ORIGINAL INCEPTION OF THE BOARD ITSELF, BECAUSE PEOPLE WERE STARTING WITH STAGGERED SCHEDULES AND THEY WOULD HAVE MAYBE LESS THAN A YEAR OR SOMETHING ON THEIR, ON THEIR ABILITY TO SERVE.

SO, WE JUST STRUCK OUT THAT LANGUAGE THAT WAS ASSOCIATED WITH THE INITIAL FORMING OF THE BOARD, BROUGHT IT UP TO TODAY'S STANDARDS.

WE KEPT A LOT OF THAT BECAUSE WE DO HAVE PEOPLE LEAVING EARLY.

BOARD MEMBERS WHO MIGHT LEAVE EARLY, AND WE DON'T PENALIZE THEM FOR THEIR FIRST TERM IF IT'S AN INTRA CYCLE APPOINTMENT TERM AND YOU PUT SOMEONE IN THAT PERSON'S PLACE, THEN THEY WOULD NOT BE CHARGED WITH THE FULL TERM.

IS THAT WHAT YOU'RE SAYING? TO ME, THAT'S WHAT I'M SAYING.

YES, YES.

AND WE JUST DID THAT WITH THE ASSIGNMENT OF DR.

CRAIG RYAN. OKAY.

RIGHT. THANK YOU.

THANK YOU, MS. JOY. ANY OTHER QUESTIONS OF JOEL OR HIS TEAM OR STAFF? ALL RIGHT. THANK YOU, SIR. AND WE APPRECIATE ALL THE WORK THAT GWEN AND HER TEAM DID IN THE SUB.

ALL RIGHT. WE HAVE A MOTION AND A SECOND ON 6.4.

ALL IN FAVOR OF APPROVAL OF 6.4, PLEASE SAY AYE.

AYE. ANY OPPOSED? ALL RIGHT. 6.4 CARRIES 7-0.

WE'RE NOW MOVING TO AGENDA ITEM 6.5.

[5. Resolution - City Secretary: Consider a resolution authorizing the City Council to cast votes for candidates to the Lubbock Central Appraisal District Board of Directors.]

THIS IS CONSIDERED THE CASTING OF THE CITY OF LUBBOCK'S 1116 VOTES FOR POSITIONS ON THE BOARD OF DIRECTORS FOR THE LUBBOCK CENTRAL APPRAISAL DISTRICT.

MAYOR, I MOVE TO CAST THE CITY OF LUBBOCK 1016 VOTES FOR THE FIVE CANDIDATES AS FOLLOWS, THEREBY DISTRIBUTING VOTES AS EVENLY AS POSSIBLE.

SONNY GARZA 204 VOTES.

BRADY GOING 203 VOTES.

GREG JONES 203 VOTES BOBBY MCQUEEN 203 VOTES.

NOY REYNOLDS, 203 VOTES.

ALL RIGHT. I HAVE A MOTION BY MR. MASSENGALE. DO I HAVE A SECOND? THANK YOU, MS. MARTINEZ-GARCIA. ALL RIGHT.

I DO HAVE A MOTION AND A SECOND ON 6.5.

IS THERE ANY DISCUSSION OR QUESTIONS REGARDING THIS, MISS JOY? PROOF THAT WE'RE NOT THE ONLY ENTITY THAT VOTES THAT WE HAVE THE OTHER TAXING ENTITIES WHO ALSO HAVE A VOTE. THIS IS JUST FOR THE CITY OF LUBBOCK.

VERY GOOD POINT. THANK YOU, MS. JOY. IN FACT, WE HAVE SUBSTANTIALLY LESS VOTES THAN IN SOME OTHER ENTITIES.

BUT THIS IS AND THESE ARE THE PARTIES THAT WE PUT PREVIOUSLY BEFORE COUNCIL THAT I THINK COURTNEY AND HER STAFF DID A GOOD JOB OF PUTTING OUT ADDITIONAL INFORMATION, LOOKING FOR OTHER PEOPLE THAT WANTED TO BE ON THIS BOARD.

AND THESE ARE THE PARTIES THAT HAVE VOLUNTEERED THEIR TIME.

SO, WE'RE APPRECIATIVE OF THEM.

ALL RIGHT. WE HAVE A MOTION AND A SECOND ON 6.5.

ALL IN FAVOR OF APPROVAL OF 6.5.

PLEASE SAY AYE. AYE.

ANY OPPOSED? ALL RIGHT. 6.5 CARRIES 7 TO 0.

ALL RIGHT. WE WILL NOW MOVE TO THE RESOLUTION.

[6. Resolution - City Council: Consider the appointment of members to the citizen committee to study amortization and strategic downzoning in the City of Lubbock.]

CONSIDER THE APPOINTMENT OF MEMBERS OF THE CITIZEN COMMITTEE TO STUDY AMORTIZATION AND STRATEGIC DOWN ZONING IN THE CITY OF LUBBOCK.

MR. ATKINSON. THANK YOU.

MAYOR. COUNCIL ITEM 6.6 IS THE FOLLOW UP TO THE RESOLUTION THAT WAS APPROVED LAST WEEK.

I WANT TO THANK EACH OF YOU FOR SUBMITTING YOUR NAMES, MAYOR.

WITH YOUR PERMISSION, I WILL READ THOSE NOW.

YEAH. LET'S GO AHEAD AND DO IT THAT WAY.

MR. ATKINSON, I WILL ASK THAT YOU READ THE NAMES GIVEN TO YOU BY COUNCIL MEMBERS.

IF ANYONE HAS AN OBJECTION TO THE NAME THAT HE READS FOR YOU, PLEASE LET US KNOW.

IF NOT, ONCE HE HAS READ THOSE NAMES, THEN I'LL ASK FOR A MOTION TO APPROVE.

6.6 AND THE APPOINTMENT OF THOSE NAMES BY MR. ATKINSON. IS THAT FAIR ENOUGH? ALL RIGHT, MR. ATKINSON.

PERFECT. THANK YOU.

NOMINATED BY MAYOR PAYNE, MR. ROBERT WOOD.