Feb 27, 2024 Regular City Council Meeting

[00:00:01]

GOOD AFTERNOON, EVERYONE.

[ 1:30 p.m. - City Council reconvenes in City Council Chambers in Work Session regarding items for presentation and discussion on such issues that may require in-depth consideration by the City Council. No action will be taken by the City Council in Work Session. ]

THANK YOU SO MUCH, DOCTOR WILSON.

I BELIEVE YOU HAVE A GUEST TODAY. IS THAT RIGHT? ALL RIGHT. YES, I DO.

I'M NOT SURE IF ONE IS HERE YET.

SHE MAY NOT BE COMING TILL TWO, BUT I DO HAVE ONE.

I HAVE MISS COURTNEY. ELLIOTT.

COURTNEY, IF YOU'LL STAND.

YOU DIDN'T KNOW I WAS GOING TO EMBARRASS YOU, SO.

MISS COURTNEY ELLIOTT. SHE IS A NURSE AT UMC, AND SHE IS WORKING ON HER NURSE PRACTITIONER THROUGH TEXAS TECH.

AND SHE IS REQUIRED THROUGH HER COURSEWORK TO COME AND INTERVIEW A BOARD MEMBER OF SOME TYPE OF BOARD.

AND SHE CHOSE TO COME AND DO A CITY COUNCIL INTERVIEW AND THEN COME SIT THROUGH A MEETING.

SO, WE'RE VERY HAPPY TO HAVE HER HERE.

AND THEN FOR OUR REGULAR MEETING, I WILL HAVE DR.

CLAIRE PARK, SHE'LL BE HERE AT TWO AND SHE IS A RESIDENT PEDIATRIC PHYSICIAN, COMING ALSO TO VIEW A MEETING.

ALL RIGHT. THANK YOU, DR. WILSON.

COURTNEY, NICE TO HAVE YOU HERE.

I'M GLAD YOU'RE HERE THIS WEEK AND NOT THE LAST COUNCIL MEETING.

YOU WOULD HAVE BEEN HERE ALL NIGHT.

THAT'S RIGHT. THANK MISS JOY HAD SOMEONE HERE AT THE LAST MEETING.

SO, WE CALLED IN THIS MORNING.

WE STARTED IT HAD AN EARLY START AT 8:30 AND WENT INTO SESSION AND THEN IMMEDIATELY WENT TO EXECUTIVE SESSION.

AND SO, COUNCIL HAS RECONVENED BACK IN.

IT'S 1:30. AND AT THIS TIME WE ARE GOING TO HAVE A WORK SESSION.

I DO NOT BELIEVE WE HAVE ANY CITIZEN COMMENTS FOR THIS WORK SESSION AT THIS TIME.

SO, AT THIS AT THIS POINT, I'LL TURN IT OVER TO YOU.

[1. Presentation of the Annual Comprehensive Financial Report]

TAKE IT AWAY. YES, MAYOR.

THANK YOU. MAYOR.

COUNCIL, GOOD TO BE WITH YOU TO PRESENT THIS FY 23 ANNUAL COMPREHENSIVE FINANCIAL REPORT.

A LOT OF HARD WORK HAS GONE INTO THIS.

SO, BEFORE I START, I CAN'T THANK OUR ACCOUNTING TEAM ENOUGH FOR ALL THAT THEY DO FOR US HERE AT THE CITY.

THAT IS LED BY OUR DIRECTOR, LINDA CUELLAR, AND OUR TWO ACCOUNTING MANAGERS BRACK BULLOCK HERE AND VERONICA VALDEZ WATCHING FROM AFAR.

SO TODAY, MAYOR, COUNCIL, WE'RE GOING TO HAVE OUR EXTERNAL AUDIT PARTNER, JENNIFER RIPKA FROM WEAVER IS GOING TO PRESENT JUST A LITTLE BIT OF THE OVERVIEW OF HER REPORT, AND THEN I'LL FOLLOW UP WITH SOME FINANCIALS.

ALL RIGHT. THANK YOU, SIR. GOOD AFTERNOON.

MY NAME IS. GOOD AFTERNOON.

NORMALLY, I DON'T HAVE ANYONE SAY IT BACK TO ME.

MY NAME IS JENNIFER RIPKA, AND I'M THE PARTNER ON THE EXTERNAL AUDIT ENGAGEMENT.

THIS IS A LITTLE BIT OF INFORMATION ABOUT ME.

THIS IS MY THIRD YEAR ON THE ENGAGEMENT.

DO A LOT OF CITIES, SCHOOL DISTRICTS AND SPECIAL PURPOSE DISTRICTS ACROSS THE STATE.

THIS IS OUR AUDIT TEAM, AND IT INCLUDES THE CORE AUDIT GROUP, AS WELL AS SOME SUBJECT MATTER EXPERTS THAT WE USE AS PART OF OUR AUDIT TEAM.

WHEN YOU'RE LOOKING AT THE AUDIT CYCLE ITSELF, WE START OUT WITH OUR INTERIM FIELD WORK.

THAT'S REALLY WHEN WE FOCUS ON INTERNAL CONTROLS HERE AT THE CITY, AND THEN WE MOVE ON TO OUR AUDIT COMMITTEE PRESENTATION.

THAT'S REALLY WHEN WE GET AN IDEA OF AREAS OF FOCUS AND RISK HERE AT THE CITY.

THEN WE MOVE ON TO FINAL FIELD WORK.

THAT'S WHEN WE ARE REALLY TESTING THE SUBSTANTIVE BALANCES WITHIN THE ANNUAL FINANCIAL REPORT.

AND THEN WE COME AGAIN TO PRESENT THE RESULTS AND THEN HERE WITH YOU ALL.

THEN WE START THE WHOLE CYCLE OVER AGAIN, OUR AUDIT PROCESS IN GENERAL, WE PERFORM THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, AS WELL AS GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.

WE ALSO PERFORM A SINGLE AUDIT THAT'S OVER THE FEDERAL FINANCIAL ASSISTANCE AND THE STATE FINANCIAL ASSISTANCE THAT THE CITY RECEIVES.

AND THEN WE ALSO DO COMPLIANCE TESTING.

ON ONE SIDE OF THE COMPLIANCE TESTING, WE'RE LOOKING AT THE PUBLIC FUNDS INVESTMENT ACT.

AND THEN ON ANOTHER SIDE, WE'RE LOOKING AT PASSENGER FACILITY CHARGE AUDITS.

FOR OUR AUDIT RESULTS, WE'VE ISSUED AN UNMODIFIED OPINION.

THAT'S A CLEAN OPINION.

THAT'S THE BEST THAT YOU CAN GET.

AND WHEN WE'RE LOOKING AT INTERNAL CONTROLS OVER FINANCIAL REPORTING, WE'RE DOING THOSE WALKTHROUGHS OVER THE INTERNAL CONTROLS.

AND THEN WE'RE ALSO LOOKING AT ACTUALLY TESTING A SAMPLE OF INTERNAL CONTROLS.

DURING OUR TEST WE NOTED NO MATERIAL WEAKNESSES, NO SIGNIFICANT DEFICIENCIES AND NO NONCOMPLIANCE.

AND SO, IN TERMS OF THE BEST THAT YOU CAN GET, THIS IS IT.

YOU WANT NOS ALL THE WAY DOWN.

AND THEN UNMODIFIED OPINION ON THE FEDERAL AND STATE AWARDS SIDE, WE'VE ISSUED AN UNMODIFIED OPINION ON COMPLIANCE WITH REGARDS OF THE TWO PROGRAMS THAT WE TESTED. WE LOOKED AT ARPA FUNDING THIS YEAR AS WELL AS TRANSIT FUNDING.

[00:05:04]

AND THAT'S VERY DIFFICULT TO ACHIEVE, ESPECIALLY WITH REGARDS TO ARPA FUNDING, BECAUSE IT'S NEWER FUNDING AND THE COMPLIANCE REQUIREMENTS.

WITH REGARDS TO THAT, A LOT OF CITIES ACROSS THE STATE ARE, YOU KNOW, JUST GETTING USED TO UTILIZING THAT FUNDING.

AND SO, IN TERMS OF ELIGIBLE USES, AS WELL AS HAVING AN INTERNAL CONTROL STRUCTURE THAT IS APPROPRIATE, CAN BE DIFFICULT TO ACHIEVE.

SO GREAT JOB IN TERMS OF THAT, IN ADDITION TO OUR TESTING OF ACCOUNT BALANCES, WE ALSO LOOK AT OR WE DETERMINE WHAT AREAS THAT WE'RE GOING TO FOCUS ON FROM A RISK STANDPOINT.

UTILITY BILLING IS ONE HERE AT THE CITY THAT WE'VE IDENTIFIED AS A HIGHER RISK AREA.

AND WE DO ANALYSIS OF SAMPLING TRANSACTIONS OF UTILITY BILLS ACROSS THE CITY.

SO THAT WOULD INCLUDE ELECTRIC AND THEN ALSO WATER, SEWER AND REFUSE.

ALL OF THAT IS INCLUDED IN THAT TEST.

WHEN WE DID OUR TESTING WITH REGARDS TO THAT, WE HAD NO FINDINGS.

WE ALSO COMPARE UTILITY BILLING FROM YEAR TO YEAR WHEN WE'RE LOOKING AT THE CITIZENS AND THEIR CUSTOMER RECORDS. WHEN WE PULL DOWN ALL OF THAT INFORMATION, WE PULL IT OUT.

WE LOOK AT IT FROM A DATA ANALYTICS STANDPOINT.

SO, WE'RE TESTING IT OR WE'RE PULLING IT 100% OF THE POPULATION.

WE DO COMPARATIVE ANALYTICS WITH REGARDS TO THAT.

WE PULL OUT ANY ITEMS THAT APPEAR TO BE ANOMALIES AND THEN WE TEST IT FURTHER.

AND WHEN WE DID THOSE TESTS, WE NOTED THAT THERE WERE SEVERAL INSTANCES THAT WE, YOU KNOW, PULLED OUT FOR FURTHER TESTING, BUT THERE WERE NO ISSUES ASSOCIATED WITH THOSE.

SO, WHEN WE DID OUR FURTHER TESTING WITH REGARDS TO THOSE ITEMS, WE DIDN'T HAVE ANY.

THERE WAS NO NONCOMPLIANCE OR, YOU KNOW, ISSUES FROM A TESTING STANDPOINT.

THEN WE REVIEW MATERIAL JOURNAL ENTRIES TO UTILITY BILLING REVENUES AND THEN ALSO LOOK AT NON-CASH ITEMS. WE NOTED THAT ALL OF THOSE ENTRIES HAD PROPER SUPPORT AND WERE APPROPRIATE.

AND THEN THE LAST ONE IS GRANT FUNDING.

AND WE DO THAT FEDERAL AND STATE FINANCIAL ASSISTANCE TESTS.

BUT THEN OUTSIDE OF THAT, WE'RE LOOKING AT ALL THE OTHER GRANT FUNDING THAT THE CITY RECEIVES.

WE'RE DOING DETAILED TESTING OF THOSE ITEMS, AND WE'RE LOOKING FOR PROPER REVENUE RECOGNITION TO ENSURE THAT THE ITEMS BOTH HAVE SUPPORT ASSOCIATED WITH THEM AND THEY'RE RECOGNIZED IN THE PROPER PERIOD.

SO, NO ISSUES WITH REGARDS TO THAT TESTING.

AND THEN ON THE FINANCIAL REPORTING SIDE WE'RE REQUIRED TO DO JOURNAL ENTRY TESTING.

WE LOOK AT THAT WITH A BROAD RANGE.

ONE IS PULLING OUT ITEMS THAT WOULD BE CONSIDERED TO BE UNUSUAL VENDORS EMPLOYEES, Y'ALL'S NAMES, ANYTHING ASSOCIATED WITH THAT WOULD BE PULLED OUT FOR TESTING CREDIT BALANCES FOR ITEMS THAT WOULD TYPICALLY HAVE A DEBIT BALANCE OR VICE VERSA.

THOSE GET PULLED OUT FOR TESTING ANY ITEMS THAT HIT CASH, WE PULL THOSE OUT.

AND WHEN WE DID THOSE TESTS WITH REGARDS TO THE JOURNAL ENTRIES, WE DIDN'T HAVE ANY ISSUES ASSOCIATED WITH THOSE.

WITH THAT, I'LL TURN IT OVER TO BLUE.

THANK YOU.

THANK YOU.

JENNIFER. ALL RIGHT.

MAYOR, COUNCIL, TURNING TO OUR FINANCIAL RESULTS, WE'RE GOING TO FOCUS ON SOME OF THE MORE MAJOR FUNDS, STARTING FIRST WITH THE GENERAL FUND.

IF YOU'LL DRAW YOUR ATTENTION TO THE TO THE TOP CHART, THAT'S OUR REVENUES AND EXPENSES YEAR OVER YEAR FOR THE LAST FIVE YEARS.

IF YOU'LL PAY ATTENTION TO THE TO THE RIGHT SIDE OF THAT ONE.

IN FISCAL YEAR 23, REVENUES CAME IN AT 273 MILLION, AS OPPOSED TO EXPENSES OF 270 MILLION.

SO POSITIVE RESULTS IN THAT ASPECT.

IF YOU LOOK AT OUR FIVE-YEAR ANNUAL GROWTH RATES, AVERAGE ANNUAL GROWTH RATES, OUR REVENUES HAVE GONE UP OVER THOSE FIVE YEARS, ABOUT JUST SHY OF 5%.

EXPENSES HAVE GONE UP ABOUT 4.5%.

NOW, IF YOU LOOK AT POPULATION PLUS INFLATION, WHICH IS A COMMON STATE METRIC WHEN THEY'RE SETTING THEIR BIENNIUM BUDGETS, IF YOU LOOK AT THAT, HOW WE'RE DOING COMPARED TO THAT, THE AVERAGE ANNUAL GROWTH RATE OF POPULATION PLUS INFLATION HERE IN LUBBOCK IS 4.8.

SO THAT 4.5 STILL FALLING BELOW THAT 4.8% THE BOTTOM.

WHAT YOU SEE IS WHAT WE'VE DONE OVER THE LAST SEVERAL YEARS IS KIND OF NORMALIZE OUR REVENUES AND EXPENSES OVER THE, OVER THE LAST FEW YEARS.

AND WE TRY TO BREAK EVERYTHING DOWN TO AN EQUAL DOLLAR, EQUAL POPULATION.

SO, TAKING OUT THAT GROWTH RATE FOR POPULATION, TAKING OUT THE INFLATION.

[00:10:04]

VERY, VERY FLAT EXPENSES DOWN 0.4% OVER THOSE FOUR YEARS.

LOOKING AT THE REVENUES BY CATEGORY, OF COURSE, WHERE YOU SEE THAT 5% GROWTH IN OUR REVENUES OVER THOSE LAST FIVE YEARS, 5.5% OVER THE LAST THREE IS FROM YOUR SALES TAX.

SO, WE'VE SEEN TREMENDOUS GROWTH IN SALES TAX, PROPERTY TAX, STAYING ABOUT FLAT.

JUST A JUST A SLIGHT INCREASE AT 2% CHARGES FOR SERVICES.

THIS IS GOING TO BE MOSTLY YOUR SOLID WASTE CHARGES.

THAT'S WHAT'S GOING TO BE ENCOMPASSED IN THIS AT 3.5% GROWTH FRANCHISE FEES AT THREE.

AND THEN YOU SEE SOME OF THE SMALLER REVENUE CATEGORIES TRAILING OUT FROM THERE.

AGAIN, REVENUE PER CAPITA INFLATION ADJUSTED.

STILL, YOU'RE GOING TO SEE THE SAME SAME TRENDS WITH SALES TAX, PROPERTY TAX AND CHARGES FOR SERVICES.

EVERYTHING ELSE IS GOING TO BE REMAINING FLAT YEAR OVER YEAR.

COULD YOU GO BACK BRIEFLY? JUST WHAT'S THE GIVE A LITTLE MORE DEFINITION ON MISCELLANEOUS? I MEAN SUBSTANTIAL DECREASE AND MAYBE WHY MISCELLANEOUS IS JUST GOING TO BE.

ANYTHING THAT COMES IN THAT YEAR THAT'S NOT REALLY PLANNED FOR BUDGETED.

IF WE GET ANYTHING REDEMPTIONS, RECOVERIES ANYTHING FROM INSURANCE RECOVERIES, THAT'S WHERE THOSE WILL, WILL HIT OUR, OUR GENERAL FUND REVENUE.

THAT BE SALES? PROPERTY SALES? IT COULD BE PROPERTY SALES.

WE SOLD PROPERTY THAT WE HOLD THAT WOULD GO INTO MISCELLANEOUS.

THAT GOES INTO MISCELLANEOUS IS THAT GO TO GENERAL FUND.

TYPICALLY, IT GOES TO GENERAL FUND ALWAYS.

WELL OBVIOUSLY, THE GO TO A BIT TO THE INTEREST.

IS THAT JUST BEEN RECENTLY SINCE WE'VE SEEN THE SPIKE.

I MEAN THAT'S A 104.3% INCREASE IS THAT IT HAS I'VE GOT A I'VE GOT A FULL INTEREST EARNINGS SLIDE LATER ON IN THE PRESENTATION.

SO, YOU'RE TELLING ME I PUT THE CART BEFORE THE HORSE.

I'M NOT TELLING YOU THAT.

I'M JUST OKAY I SEE I HEAR WHAT YOU'RE SAYING.

THAT'S A GREAT THAT'S A GREAT TIP.

THAT'S BLUE'S WAY OF SAYING HOLD ON.

ALL RIGHT, ALL RIGHT.

I'LL LET YOU GO VERY POLITELY.

HOLD ON. SIR. ALL RIGHT. I'LL SEE THAT IN THE SLIDE SOON, SIR.

ALL RIGHT. ALL RIGHT, MAYOR, COUNCIL MOVING ON TO THE EXPENSE BY CATEGORY IN THE GENERAL FUND, OF COURSE, WITH MOST GENERAL FUNDS ACROSS THE STATE, YOUR POLICE AND YOUR FIRE ARE GOING TO BE THE BIGGEST BULK OF YOUR SPENDING IN THE GENERAL FUND ALWAYS.

SO, POLICE GOING UP OVER THOSE THREE YEARS BY ABOUT 7.2%, FIRE AT 5.4 TRANSFERS.

WHAT'S GOING TO BE ENCOMPASSED IN HERE IS MOSTLY YOUR CASH FUNDED CAPITAL.

SO, WE HAVE THE CASH IN THE GENERAL FUND.

WE TRANSFER THOSE FUNDS OUT TO THOSE CAPITAL PROJECTS.

THAT'S WHERE YOUR CASH FUNDED CAPITAL SHOWS UP.

SO THAT'S GOING TO BE ONE OF YOUR BIGGEST VARIANCES EVERY YEAR.

DEPENDING ON HOW MUCH CASH WE HAVE TO ALLOCATE.

YOUR PUBLIC WORKS IS GOING TO BE YOUR STREETS, YOUR ENGINEERING DEPARTMENTS.

THAT'S WHERE PUBLIC WORKS GOING UP 6.2%.

ADMIN IS GOING TO BE MOST OF US UP HERE.

FINANCE, INTERNAL AUDIT.

COMMUNICATIONS AND MARKETING.

THAT'S WHERE YOUR ADMIN CHARGES ARE.

THAT'S BEEN GOING DOWN RECENTLY SLIGHTLY UP IN IN FISCAL YEAR 23 BUT BUT RELATIVELY FLAT.

CULTURAL AND RECREATION 5.6.

DEVELOPMENT SERVICES 6.1.

AND THEN OTHER PUBLIC SAFETY.

YOUR ANIMAL SHELTER AND YOUR YOUR PUBLIC HEALTH AT AN INCREASE OF 6.1%.

SOME OF THE KEY METRICS AS FAR AS THE AUDIT STANDARDS ARE CONCERNED, ON THE GENERAL FUND RESERVES, WE'VE GOT TO STAY AT OR ABOVE THAT 20% LEVEL.

RIGHT NOW. WE ARE. WE ENDED THE YEAR WITH $92.4 MILLION IN UNASSIGNED FUND BALANCE.

THAT THAT MOVES OUR RESERVE AMOUNT TO 34.2%.

SO STILL, WHEN WE TALK BUDGET, WHAT THAT WHAT THAT AMOUNTS TO IS, IS REALLY SOMEWHERE GOING TO BE AROUND 12 TO 12 TO $15 MILLION OF UNRESTRICTED FUND BALANCE ABOVE POLICY LEVEL FOR THE NEXT YEAR'S BUDGET THAT WE WILL BE ABLE TO TO WORK THROUGH YOUR CURRENT RATIO.

I KNOW EVERYBODY IS LOVING THIS RATIO.

THIS IS REALLY JUST HOW MUCH SHORT-TERM LIQUID ASSETS YOU HAVE, YOUR CASH AND YOUR INVESTMENTS REALLY TO PAY FOR ANY OF YOUR SHORT-TERM LIABILITIES.

SO, ANYTHING THAT'S GOING TO BE DUE WITHIN ONE YEAR, ANYTHING ABOVE ONE IS GOOD.

THAT MEANS YOU HAVE ENOUGH CASH TO COVER YOUR LIABILITIES.

RIGHT NOW, WE HAVE WHAT THIS IS SAYING IS WE HAVE 6.7% OR 6.7 TIMES THE AMOUNT OF CASH TO COVER OUR SHORT-TERM LIABILITIES.

SO VERY LIQUID, VERY HEALTHY, VERY STRONG IN THE GENERAL FUND.

ALL RIGHT. I'M GOING TO MOVE OVER, AWAY FROM TAX DOLLARS AND MOVE TO MORE OF OUR ENTERPRISE FUNDS, YOUR WATER AND YOUR WASTEWATER.

[00:15:05]

THIS, THE REVENUE 168.1 IS REALLY MADE UP OF ABOUT $141 MILLION OF OPERATING REVENUES, WHICH IS SLIGHTLY DOWN YEAR OVER YEAR. $12 MILLION OF INTEREST EARNINGS, $13 MILLION OF DEVELOPER CONTRIBUTIONS.

AND THEN OF THAT $131 MILLION OF EXPENSES, ABOUT 106 OF THAT IS ACTUAL OPERATING EXPENSES.

WE HAVE BEEN USING QUITE A BIT OF OUR CASH FOR CASH FUNDED CAPITAL.

YOU CAN SEE THAT IN THE BOTTOM CHART.

YEAR OVER YEAR, WE'VE BEEN PUTTING MORE OF OUR, OUR AVAILABLE RESERVES TO, TO WORK IN THOSE ONETIME CAPITAL PROJECTS.

SO DOES BRING OUR CASH AND INVESTMENTS AS A PERCENTAGE OF EXPENSES DOWN TO 36.1%.

WE'RE STILL VERY HEALTHY, 132 DAYS OF CASH AND INVESTMENTS ON HAND, READY TO PUT TO WORK.

SO STILL A HEALTHY AMOUNT IN THAT FUND.

WATER AND WASTEWATER BECAUSE IT'S INDEPENDENTLY RATED.

WE HAVE A FEW DIFFERENT METRICS THAT WE LOOK AT.

FIRST, DEBT SERVICE COVERAGE RATIO DID DROP TO ABOUT 1.3 TIMES COVERAGE RATIO THIS YEAR.

THAT IS AGAIN BECAUSE WE HAD A FAIRLY LARGE DROP IN OUR NET OPERATING INCOME.

SO THAT'S YOUR OPERATING REVENUES MINUS YOUR OPERATING EXPENSES THAT DROPPED YEAR OVER YEAR BY ABOUT 25%.

WE HAD A LITTLE BIT LOWER OPERATING REVENUES JUST DUE TO USAGE, BUT A LITTLE BIT HIGHER EXPENSES FOR A LOT OF ONE-TIME FIXES, REPAIRS THAT WERE NECESSARY FOR THIS YEAR.

SO THAT THAT COVERS RATIO DID DROP.

STILL FINE, STILL HEALTHY.

BUT WE WILL BE WORKING IN THE FUTURE YEARS TO START GETTING THAT BACK UP TO AROUND THAT 1.5 TIMES THAT WE WE'VE BEEN HOLDING OVER THE LAST FEW YEARS.

NOT DEBT TO CAPITALIZATION BECAUSE WE'VE BEEN USING A LOT MORE OF OUR CASH.

YOU SEE THIS COMING DOWN THAT THAT IS EXTREMELY GREAT.

WE WANT TO SEE ANYTHING BELOW 35%.

THAT'S IN KIND OF WHAT THE AGENCIES TALK ABOUT IS THEIR TRIPLE A RATING.

SO, WE'RE GETTING DOWN TO THAT METRIC, GETTING DOWN TO THAT LEVEL THAT WE NEED TO SEE IN THAT ONE.

MR. MCBRAYER HAS A QUESTION.

DEBT SERVICE COVERAGE IF THAT'S COMING DOWN.

AND WE'RE CONSERVING WATER, DOES THAT POSE A PROBLEM AT ALL? THE CONSERVATION OF WATER? AND BECAUSE OBVIOUSLY THE THAT'S A SOURCE OF SOME OF OUR INCOME.

SO HOW DOES THAT THAT'S ALMOST A VARIABLE EXPENSE WHEN YOU, WHEN YOU'RE TALKING ABOUT IT LIKE THAT.

SO, CONSERVATION OF WATER MEANS LESS WATER TREATED.

SO YOUR YOUR REVENUES COME DOWN BUT ALSO YOUR EXPENSES COME DOWN AS WELL OKAY.

THANK YOU. ALL RIGHT.

WE'RE GOING TO MOVE AWAY FROM THAT AND MOVE TO OUR SECOND MAJOR ENTERPRISE FUND, THE AIRPORT.

OVERALL $27.9 MILLION IN OPERATING REVENUE AND TRANSFERS IN, AS OPPOSED TO $23.3 MILLION OF EXPENSES AND TRANSFERS OUT THAT THAT THAT REVENUE AMOUNT MOSTLY MADE UP OF $11.5 MILLION OPERATING REVENUE, $10.8 MILLION OF PASSENGER FACILITY CHARGES. SO THAT'S THE BULK OF YOUR REVENUES AND TRANSFERS IN FOR AIRPORT.

19.6, ALMOST $20 MILLION OF ACTUAL OPERATING EXPENSES IN THAT OVERALL FUND BALANCE AS A PERCENTAGE OF EXPENSES.

EXTREMELY HEALTHY, 233.2%.

SO, NOTHING OF ISSUE IN THE LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT AND OUR FINAL ENTERPRISE FUND MAJOR ENTERPRISE FUND, THE STORMWATER FUND, $33.6 MILLION OF REVENUES AND TRANSFERS IN, AS OPPOSED TO $15.5 MILLION OF EXPENSES AND TRANSFERS OUT OF THAT REVENUE AMOUNT, ABOUT $23.6 MILLION OF OPERATING REVENUE $11.7 MILLION OF OPERATING EXPENSES.

SO STILL ON A NET INCOME OPERATING LEVEL, VERY, VERY HEALTHY FUND BALANCE CONTINUES TO INCREASE.

EVEN WITH US CONTINUING TO DROP STEADILY DROP THE STORMWATER RATES.

SO, WE'LL CONTINUE THAT TREND IN THE IN THE FUTURE, SEE WHAT WE CAN GET OUR, OUR STORMWATER RATES DOWN TO WHILE STILL MAINTAINING THE SYSTEM.

ALL RIGHT. DEBT, PENSIONS AND INVESTMENT RESULTS.

MAIER. SO, THE OVERALL THE DEBT PROFILE FOR FISCAL YEAR IN 23 AS JUST SHY OF $1.8 BILLION. THAT'S DOWN $41.8 MILLION YEAR OVER YEAR.

[00:20:03]

SO EVEN NETTING THAT OUT, WE STILL DROPPED OUR OVERALL DEBT BY $41.8 MILLION.

SO, YOU STILL HAVE ABOUT AN 80 OVER 20 BALANCE BETWEEN USER FEES MAKING UP 80% OF YOUR DEBT.

TAX DOLLARS ARE SUPPORTING ABOUT JUST SHY OF 20% OF YOUR DEBT.

MOVING ON TO PENSIONS.

NOT AS GREAT OF A STORY HERE, BUT THERE IS AN EXPLANATION TO THIS.

SO, OUR TEAM, MAURICE AND LUBBOCK FIRE PENSION FUNDED RATIOS DID DROP IN FISCAL YEAR 23.

82.5% ON TMRS, DOWN FROM 90 ALMOST 96% THE YEAR BEFORE.

LUBBOCK. FIRE PENSION ALMOST 80% OF THE YEAR PRIOR, DOWN TO JUST SHY OF 69%.

SO BLENDED TOGETHER, THAT'S 78.6% NOW.

IF YOU IF YOU THINK BACK AND THIS SAYS VALUED AT 1231.

SO, OUR INVESTMENT RESULTS FOR THESE PENSION PLANS AND THE WAY THAT YOU VALUE THESE AND GET THESE FUNDING RATIOS, THAT LINE IS SNAPPED AT 1231 OF 2022. SO, YOU HAVE ABOUT NINE MORE MONTHS OF THE FISCAL YEAR THAT YOU'RE GOING THROUGH.

BUT THAT'S WHEN THAT'S WHEN THE VALUATIONS ON THESE PLANS ARE SNAPPED AND SET INTO PLACE.

IF YOU THINK BACK TO DECEMBER 31ST OF 2022, 2022 AS A WHOLE WAS A TERRIBLE YEAR IN THE MARKETS.

VERY, VERY DIFFICULT.

THE S&P DOWN ABOUT 25% THAT YEAR.

SO, WITH TMRS, THE ACTUAL NET RATE OF RETURN BEING DOWN 7.3%.

LUBBOCK FIRE PENSION FUND BEING DOWN ABOUT 4.6% OVERALL, A LOT MORE POSITIVE THAN THE THAN THE MARKET AS A WHOLE.

BUT WE DID DROP. SO THAT IS GOING TO BE THE BIGGEST REASON WHY YOUR FUNDED RATIOS ARE DROPPING IS BECAUSE OF THE RECOGNITION OF THAT INVESTMENT, THAT BOOK LOSS. NOW THAT THAT WILL REVERSE, I HAVE NO DOUBT BECAUSE IN 2023, YOU KNOW THE S&P, THE MARKETS WERE UP ABOUT 22%. SO, YOU'RE GOING TO SEE I DON'T I DON'T HAVE WHAT TMRS WHAT THEIR ACTUAL RESULTS WERE IN 2023.

I KNOW THE FIRE PENSION FUND, ONCE WE GET ALL OF THE PRIVATE EQUITY WILL LIKELY BE OVER 10% RETURNS.

SO, WE'RE GOING TO BE BACK.

WE JUST HAVE ONE YEAR OF A OF A SLIGHT DIP.

ALL RIGHT. THE CITY OF LUBBOCK INVESTMENTS MAYOR REALIZED EARNINGS IN THIS ONE $21.4 MILLION FOR THE CITY AS A WHOLE.

WE'VE WORKED HARD ON THIS THIS THIS PLAN, THIS INVESTMENT PROGRAM STILL SAFE INVESTMENTS.

WE HAVE TO COMPLY WITH THE PUBLIC FUNDS INVESTMENT ACT, WHICH MEANS WE CAN ONLY INVEST IN VERY, VERY SECURE INVESTMENTS.

SO, YOU THINK TREASURIES, AGENCIES, MUNICIPAL BONDS AND SOME COMMERCIAL PAPER? THAT'S REALLY ABOUT THE EXTENT OF WHAT WE CAN DO.

WE'RE NOT DOING EQUITIES TRADING.

SO, WHEN WE LOOK AT A BENCHMARK THE BENCHMARK WAS ABOUT 3.9% EARNINGS ON THIS YEAR.

OURS GOT UP TO 3.5%.

BUT STILL THAT THAT $21.4 MILLION OF ACTUAL REALIZED EARNINGS.

WHAT WE HAVE IN OUR PORTFOLIO TODAY.

LOOKING AT FISCAL YEAR 24, THAT'S GOING TO INCREASE LIKELY TO ABOUT $24.6 MILLION OF INTEREST EARNINGS.

SO GOOD, GOOD RESULTS FROM OUR INVESTMENT PROGRAM.

MAYOR, COUNCIL, WITH THAT, I WILL PAUSE HERE, AND WE WILL TAKE ANY QUESTIONS THAT YOU HAVE.

ANYONE HAVE QUESTIONS OF MR. [INAUDIBLE]. ALL RIGHT.

THANK YOU, BLUE. ALL RIGHT. THANKS.

IT'S A GOOD REPORT. THANK YOU VERY MUCH.

THANK YOU FOR BEING HERE AND PRESENTING.

IT'S REALLY GOOD NEWS AND IT SHOWS VERY HEALTHY AND APPRECIATE YOUR WORK.

BLUE AND YOUR STAFF AND MR. ATKINSON STAFF AND ALL THE HARD WORK ON THAT.

SO, ALL RIGHT, I GUESS WE HAVE WE'LL TAKE ABOUT A FIVE-MINUTE BREAK, AND WE WILL GET STARTED PROMPTLY AT 2 P.M.

WE ARE IN RECESS FOR FIVE MINUTES.

ALL RIGHT. WE'RE BACK FROM A BRIEF SHORT RECESS.

IT IS 2:00 AND CITY COUNCIL IS IN SESSION.

WE CONVENED IN SESSION THIS MORNING AND THEN HAD AN EXECUTIVE SESSION AND THEN JUST FINISHED A BRIEF WORK SESSION.

SO NOW WE WILL MOVE TO OUR REGULAR AGENDA.

BUT TODAY WE'RE PLEASED TO HAVE BECKY ROBERTS ROBERTSON WITH US.

[1. Invocation]

AND SHE'S GOING TO GIVE OUR INVOCATION AND PRAYER TODAY.

IF YOU'D ALL, PLEASE STAND.

AND THEN IF YOU WOULD REMAIN STANDING AFTER THE PRAYER, WE WILL IMMEDIATELY MOVE TO OUR PLEDGES LED BY MAYOR PRO TEM PATTERSON HARRIS.

OKAY. GOOD AFTERNOON, MAYOR AND COUNCIL MEMBERS.

THANK YOU FOR ALLOWING ME THE OPPORTUNITY TO PRAY FOR YOU ALL.

[00:25:02]

WE HOPE WE COME TO YOU SEEKING WISDOM AND DISCERNMENT FOR MAYOR PAYNE AND HIS FELLOW COUNCIL MEMBERS AS THEY MAKE DECISIONS THAT WILL AFFECT OUR COMMUNITY.

MAY THEIR DECISIONS BUILD A STRONGER COMMUNITY THAT STRIVES TO HONOR YOU.

PLEASE GUIDE THEIR THOUGHTS AND WORDS FOR ALL TO UNDERSTAND.

FOR CITIZENS AND CITY STAFF SPEAKING TODAY, GIVE THEM THE ABILITY TO SPEAK WITH CLARITY, THEIR POINTS OF VIEW, WITH TRUTH AND PASSION.

MAY THE OUTCOMES OF TODAY'S MEETING AND MAKE OUR COMMUNITY A BETTER PLACE TO LIVE, WORK AND PLAY.

LORD, PLEASE HAVE FAVOR OVER LUBBOCK AND HELP EACH CITIZEN TO KNOW YOUR PRESENCE IN THEIR LIVES.

ALL THESE THINGS WE ASK IN THE NAME OF JESUS.

AMEN, AMEN.

THANK YOU, THANK YOU BECKY.

APPRECIATE YOU. YOU JOIN US AS WE OFFER OUR PLEDGE TO THE UNITED STATES AND TEXAS FLAG.

[2. Pledges of Allegiance]

APPRECIATE BECKY BEING HERE TODAY.

ALL RIGHT. WE HAVE NO CITIZEN COMMENTS.

IT'S A DRASTIC CHANGE FROM THE LAST MEETING WE HAD.

AND SO, WE'LL MOVE RIGHT INTO THE MINUTES.

6.1 THE 20TH OF JANUARY 23RD, 2024, REGULAR CITY COUNCIL MEETING.

[6. Minutes]

AND A SECOND. THANK YOU, MISS MARTINEZ GARCIA.

AND SECOND, BY DR. WILSON.

ALL IN FAVOR OF APPROVAL OF AGENDA ITEM 6.1.

PLEASE SAY AYE. AYE.

ANY OPPOSED? MOTION CARRIES 7 TO 0.

WE WILL NOW MOVE TO OUR CONSENT AGENDA.

BEFORE WE GET TO A VOTE ON THE CONSENT AGENDA, WE'VE GOT ONE THAT WE WOULD LIKE TO BE PULLED AND JUST BRIEFLY ADDRESS AT

[7. 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.]

WELL, LET ME JUST GO AHEAD AND TURN IT OVER TO YOU, MR. ATKINSON, AND WE'LL HAVE KELLY AVAILABLE IF WE HAVE QUESTIONS.

THANK YOU. MAYOR. CITY COUNCIL ITEM 7.18 IS AN AGREEMENT.

IT'S INITIALLY A ONE-YEAR AGREEMENT WITH A COMPANY CALLED TURO.

IF YOU'RE NOT FAMILIAR WITH TURO.

TURO IS A, QUOTE, PEER TO PEER CAR SHARING.

SO, THINK OF IT LIKE AIRBNB, BUT YOU ARE ARRANGING AS A USER TO GO SOMEWHERE AND FIND SOMEBODY ELSE'S CAR DURING WHICH YOU WOULD TAKE THAT CAR AND USE IT ON A RENTAL AGREEMENT.

SO, THE CONTRACT THAT WE HAVE IN FRONT OF YOU IS ONE THAT MISS CAMPBELL AND HER TEAM HAVE WORKED VERY HARD ON.

IT IS A ONE-YEAR AGREEMENT WITH TURO TO OPERATE AT THE LUBBOCK PRESTON SMITH INTERNATIONAL AIRPORT FOR A COUPLE OF THE ITEMS OF NOTE.

THIS CONTRACT DOES AUTO RENEW EACH YEAR.

IF THERE IS FULL COMPLIANCE WITH THE TERMS AND CONDITIONS OF THE CONTRACT, THERE EXISTS BOTH A 30 DAY EITHER PARTY TERMINATION CLAUSE OR THE CITY HAS THE RIGHT TO TERMINATE IF THERE IS A DEFAULT ON THE TERMS AND THOSE HAVE NOT BEEN CURED.

CONTRACT REQUIRES A PAYMENT FROM TURO BACK TO THE AIRPORT OF 10% OF THE GROSS REVENUE PER TRANSACTION.

BUT I THINK THE IMPORTANT THING TO NOTE IS YOU'RE COLLECTING THAT BACK FROM TURO, RATHER THAN FROM THOSE INDIVIDUALS WHO ARE PROVIDING THE VEHICLE.

CONTRACT CONTAINS ROBUST REPORTING CONTRACTS OR REPORTING ITEMS AND REQUIREMENTS, AND I THINK NOT LISTED IN THIS CONTRACT.

BUT JUST AS AN ITEM OF NOTE, THIS REALLY PUTS TURO AS A TRANSPORTATION PROVIDER ON THE SAME FOOTING AS OTHER TRANSPORTATION PROVIDERS WHO OPERATE AT THE AIRPORT.

SO, WITH THAT, I WOULD TAKE ANY QUESTIONS.

MISS CAMPBELL IS HERE IF I NEED HELP, AND I BELIEVE WE HAVE A REP FROM TURO AS WELL.

MISS JOY, YOU HAVE QUESTIONS? NOT SO MUCH ABOUT THE CONTRACT.

I'VE READ THE CONTRACT, AND IT'S PRETTY COMPREHENSIVE.

COMPREHENSIVE? BUT WE'VE HAD TURO OPERATING IN THE CITY OF LUBBOCK.

I'VE HAD CALLS FROM PEOPLE WHO WOULD SAY, OH, THERE'S SOMEBODY KEEPS PULLING UP IN THIS DRIVEWAY AND THEY'RE EXCHANGING VEHICLES.

[00:30:01]

SOMEONE IS RENTING A VEHICLE, BUT THE EXCHANGES ARE OCCURRING WITHIN THE CITY IN PRIVATE DRIVEWAYS, THINGS LIKE THAT. SO, MY QUESTION TO TURO IS, DO YOU HAVE THE SAME AGREEMENT WITH PEOPLE WHO ARE RENTING THEIR VEHICLES WITHIN THE CITY OF LUBBOCK, NOT AT THE AIRPORT.

DO YOU HAVE THE SAME AGREEMENT THAT YOU HAVE WITH THE AIRPORT? THANK YOU, ALICE JOY, I'M GOING TO INTRODUCE AARON BARRAZA AND LET HIM ANSWER YOUR QUESTION.

WHAT'S HIS NAME? AARON BARRAZA.

OKAY, AARON, YOU CAN STEP FORWARD.

GOOD AFTERNOON.

HOW ARE YOU? GREAT.

THANK YOU SO MUCH.

SORRY. YOU WANT TO GO AHEAD AND JUST INTRODUCE YOURSELF TO THE COUNCIL? AND THEN I THINK MISS JOY HAD A SPECIFIC QUESTION.

SURE. MAYOR, MEMBERS OF COUNCIL, THANK YOU FOR HAVING ME TODAY.

MY NAME IS AARON BARRAZA.

I'M ON THE AIRPORT'S TEAM WITH TURO, AND I'M HERE TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.

SURE. I'VE READ THE AGREEMENT THAT YOU HAVE AT THE AIRPORT, AND I LIKE A LOT OF THE THINGS IN IT.

FOR EXAMPLE, IF SOMEONE WANTED TO USE A VEHICLE TO SMUGGLE DRUGS, FOR EXAMPLE, THAT'S ILLEGAL.

CAN'T DO THAT.

AND YOU'VE BUILT IN PROTECTIONS AGAINST SEX TRAFFICKING AND PROSTITUTION, ALL KINDS.

BUT WITHIN THE CITY OF LUBBOCK, WHAT TYPE OF AGREEMENT DO YOU HAVE WITH THE PEOPLE WHO ARE RENTING THEIR VEHICLES? NOT AT THE AIRPORT, BUT JUST ON THE STREETS OF LUBBOCK? SURE. SO, WE HAVE NEARLY IDENTICAL TERMS AND CONDITIONS AT EACH HOST AND GUEST MUST ABIDE BY.

IF TURO IS NOTIFIED OF ANY OF INFRACTIONS THAT ARE TAKING PLACE, THEN WE TAKE AN IMMEDIATE RESPONSE WITH THOSE RESPECTIVE HOSTS AND GUESTS TO EITHER CONTACT LAW ENFORCEMENT OR JUST FIND ANY PATH FORWARD THAT WE CAN MAKE SURE THAT THESE WRONGDOINGS ARE TAKEN CARE OF IN A TIMELY MANNER.

BUT THERE ARE STRICT TERMS AND CONDITIONS PRIOR TO A HOST UPLOADING THEIR VEHICLE TO THE PLATFORM, OR A GUEST BOOKING ONE OF THESE VEHICLES THAT THEY MUST AGREE TO.

AND SO, HAVE YOU HAD TO ENFORCE ANY OF THOSE AGREEMENTS THAT YOU HAD UP UNTIL THIS TIME? SO TURO DOES OPERATE AT OVER 110 AIRPORTS ACROSS THE COUNTRY, AND I'M SPECIFICALLY ON THE AIRPORTS TEAM.

AND WE ALSO OPERATE IN ALL 50 STATES IN THE UNITED STATES.

AND WE ALSO OPERATE IN THE UK, IN FRANCE, IN AUSTRALIA AND IN CANADA.

SO, OPERATING IN SUCH A WIDE GEOGRAPHICAL AREA, YOU'RE BOUND TO RUN INTO SOME BAD ACTORS.

AND SO, THERE ARE INSTANCES WHERE SOME BAD ACTORS HAVE YOU KNOW, DONE WHAT THEY DO AND ACTING BADLY.

AND, AND TURO DID INTERFERE QUITE QUICKLY TO MAKE SURE THAT THERE WAS OUR SAFETY IS OUR NUMBER ONE CONCERN.

AND SO, WE DO INTERFERE WHEN WE NEED TO.

DO YOU FEEL LIKE THAT HAVING THIS AGREEMENT WITH THE AIRPORT MIGHT DECREASE SOME OF THIS NEIGHBORHOOD ACTIVITY WHERE WE HAVE PEOPLE EXCHANGING VEHICLES? IT MAY.

THAT'S THE THAT'S OUR WHOLE INTENTION WITH GETTING PERMITTED AT AIRPORTS IS ONE TO ENSURE WE'RE ABLE TO TRACK THE NUMBER OF EXCHANGES THAT ARE TAKING PLACE AT THE AIRPORTS.

SO THAT WAY WE MAY TAKE 10% OF THAT GROSS REVENUE AND ACTUALLY GIVE IT TO THE AIRPORT ON A MONTHLY BASIS.

IN ADDITION TO GIVING THE AIRPORT THE 10% OF THE GROSS REVENUE EVERY SINGLE MONTH, WE'RE ALSO SUPPLYING A LENGTHY LIST OF INFORMATION TO THE AIRPORT OF WHAT TYPES OF EXCHANGES TOOK PLACE THAT COULD INCLUDE LICENSE PLATES, VIN NUMBERS, MAKES AND MODELS ALL KINDS OF INFORMATION.

SO, THE AIRPORT IS FULLY AWARE OF THE EXCHANGES TAKING PLACE ON THEIR AIRPORT PROPERTY.

SO, THE TRANSACTIONS THAT OCCUR WITHIN THE CITY, NOT AT THE AIRPORT.

BUT DO YOU PAY ANY TAXES TO THE CITY ON THOSE AS WELL? ABSOLUTELY. SO, THE STATE OF TEXAS DOES CLASSIFY TURO AS A PEER-TO-PEER MARKETPLACE FACILITATOR.

AND WE ARE IN FULL COMPLIANCE WITH THE STATE OF TEXAS.

WE RECEIVED LETTERS THAT WE'RE IN GOOD STANDING WITH THE STATE OF TEXAS FROM GLENN HAGAR, THE STATE COMPTROLLER.

WE DO COLLECT THE STATE SALES AND USE TAX AND REMIT THOSE TO THE STATE ON A MONTHLY BASIS.

OKAY. SO, THEY GO TO THE STATE AND THEN I GUESS THEY TRICKLE OUT TO THE CITIES FROM THERE.

ALL RIGHT. WE LET THEM DO THAT.

I DON'T HAVE A PROBLEM WITH THE AGREEMENT.

I THINK IT'S A GOOD IDEA.

I JUST WANT TO MAKE SURE THAT YOU HAD THE SAME UNDERSTANDING WITH THE PEOPLE WHO ARE DOING THE EXCHANGES WITHIN THE CITY.

YES, MA'AM. AND FURTHER, THE AIRPORT HAS MY CONTACT INFORMATION.

NOW, I'M THEIR POINT OF CONTACT FOR ANYTHING AT TURO.

AND I WOULD ENCOURAGE ALL OF YOU, IF YOU HAVE ANY QUESTIONS OR CONCERNS, TO PLEASE CONTACT ME DIRECTLY AND I'LL MAKE SURE THAT WE GET ANYTHING RESOLVED THAT YOU ARE CURIOUS ABOUT. WHERE DO YOU OFFICE? PERSONALLY, I LIVE IN DENVER, COLORADO, BUT TURO IS HEADQUARTERED IN SAN FRANCISCO.

[00:35:03]

ANY OTHER QUESTIONS? ALL RIGHT. THANK YOU VERY MUCH. WE APPRECIATE YOU BEING HERE.

THANK YOU. ALL RIGHT.

ANY OTHER QUESTIONS OF KELLY OR JARRETT OR ANY OTHER QUESTIONS ON 7.18? ALL RIGHT. NOW COUNCIL WILL TAKE UP THE CONSENT AGENDA, WHICH IS ITEM 7.1 THROUGH 7.29.

IS THERE A MOTION TO APPROVE CONSENT AGENDA 7.1 THROUGH 7.29.

THANK YOU, MISS MARTINEZ. GARCIA.

THANK YOU, MR. MASSENGALE. ALL IN FAVOR OF APPROVAL OF THE CONSENT AGENDA 7.1 THROUGH 7.29, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION CARRIES 7 TO 0.

ALL RIGHT. WE WILL NOW MOVE TO THE REGULAR AGENDA, WHICH IS WE'LL START WITH AGENDA ITEM 8.1.

[1. Ordinance 2nd Reading - Planning (District 5): Consider Ordinance No. 2024-O0016, for Zone Case 3494, a request of the City of Lubbock, for a zone change from Low Density Single-Family District (SF-2) to Industrial Park District (IP), at 7401 Alcove Avenue, located north of Marsha Sharp Freeway and east of Alcove Avenue, on 70.65 acres of unplatted land out of Block AK, Section 31.]

DO WE HAVE ANY FURTHER QUESTIONS? ANY OTHER QUESTIONS OF STAFF ON THIS ONE? I KNOW IT'S BEEN A FAIRLY LENGTHY AMOUNT OF TIME ON THIS LAST, LAST MEETING.

MISS JOY, DO YOU HAVE ANY QUESTIONS ON THIS ONE OR FURTHER QUESTIONS FOR STAFF? ALL RIGHT. SORRY YOUR BUTTON WAS PUSHED, I WAS CHECKING.

ALL RIGHT. IS THERE A MOTION TO APPROVE? AGENDA ITEM 8.1? THANK YOU, MR. MASSENGALE.

THANK YOU, DOCTOR WILSON.

IS ANY FURTHER DISCUSSION ON 8.1? MR. MCBRAYER? OKAY. ONCE AGAIN, I JUST HAVE TO STATE THAT I READ OUR WEBSITE THE OTHER NIGHT AND ON ONE OF THE PAGES, IT SAYS STRONG NEIGHBORHOODS ARE THE CORNERSTONE OF A STRONG CITY.

IN THE PAST YEAR, THIS COUNCIL HAS HAD INSTANCES WHERE DEVELOPERS CAME FORWARD IN MY DISTRICT, DISTRICT THREE AND IN DISTRICT ONE WANTING TO CHANGE ZONING SO THAT THEY COULD BUILD MASSIVE STUDENT HOUSING COMPLEXES RIGHT NEXT TO SINGLE FAMILY RESIDENCES. THEIR STATED GOAL WAS FOR THESE MASSIVE PROJECTS WAS SO THAT THEY COULD MAXIMIZE THEIR RETURN ON INVESTMENT.

BUT AFTER STRONG OPPOSITION FROM THESE NEIGHBORHOODS, SOME OF US ON THIS COUNCIL REALIZE THAT THESE ZONING CHANGES WOULD COME AT THE EXPENSE OF THE QUALITY OF LIFE IN THESE NEIGHBORHOODS. AND IN BOTH CASES, THIS COUNCIL.

AT LEAST A MAJORITY OF US STOOD UP SUCCESSFULLY TO PROTECT THOSE NEIGHBORHOODS.

SO NOW WE HAVE ANOTHER NEIGHBORHOOD, WITH ITS HOMEOWNERS COMING BEFORE THIS COUNCIL TO EXPRESS THEIR OPPOSITION TO ANOTHER ZONING CHANGE THAT THEY BELIEVE WOULD THREATEN THE QUALITY OF LIFE IN THEIR NEIGHBORHOOD IN DISTRICT FIVE.

ONLY THIS TIME IT'S THE CITY ITSELF THAT IS WANTING THE ZONING CHANGE TO BUILD A GAS STATION NEAR THEIR HOMES AND THEIR SCHOOLS.

AND THE REASON GIVEN BY THE CITY IN THIS CASE IS THE SAME.

IT'S BECAUSE IT'S OUR BEST RETURN ON INVESTMENT.

THESE HOMEOWNERS CAME BEFORE US AND REASONABLY AND CALMLY EXPRESSED THEIR OPPOSITION BASED ON THEIR CONCERNS ABOUT TRAFFIC SAFETY AND DIMINISHED HOME VALUES.

AND YET WE COULDN'T EVEN GET A SECOND FROM ANYONE ON THIS COUNCIL TO POSTPONE OUR VOTE SO THAT WE COULD STEP BACK AND TAKE ANOTHER LOOK AND SEE IF WE, IN FACT, HAVE MADE THE RIGHT DECISION.

INSTEAD, MANY OF THESE HOMEOWNERS FELT LIKE THEIR CONCERNS WERE BRUSHED ASIDE BY COMMENTS THAT THEY CONSIDERED INSULTING AND CONDESCENDING, AS IF THEY DIDN'T KNOW WHAT WAS GOOD FOR THEM.

BELIEVE ME, THEY DO.

THERE'S NOTHING THAT IS MUCH MORE IMPORTANT TO ANY OF US THAN OUR HOMES AND OUR NEIGHBORHOODS.

SO INSTEAD, ON FIRST READING THIS COUNCIL VOTED SIX ONE TO MOVE AHEAD WITH THIS PROJECT.

WHY? BECAUSE OUR STAFF AND I AM NOT CRITICIZING OUR STAFF AT ALL.

THEY DID THE WORK THEY WERE SUPPOSED TO DO, BUT THEY TOLD US THIS LOCATION PROVIDED OUR BEST RETURN ON INVESTMENT.

AND SOME PEOPLE SAID, WELL, WE'VE BEEN PLANNING THIS FOR YEARS AND WE DON'T NEED TO DELAY IT ANYMORE.

WELL, OUR STAFF ARE NOT THE POLICY MAKERS WE ARE.

WE DECIDE WHEN AND WHERE WE WILL BUILD THIS FACILITY, AND THAT MAY MEAN WE NEED TO TAKE MORE TIME TO CONSIDER SOME THINGS THAT WERE NOT INCLUDED IN OUR STAFF'S REPORT, NAMELY, THE CONCERNS OF OUR CITIZENS WHO DESERVE TO BE HEARD, WHETHER THEY'RE SPEAKING UP AGAINST BIG DEVELOPERS OR THE CITY ITSELF. WHEN THEY BELIEVE SOMETHING IS THREATENING THE QUALITY OF LIFE IN THEIR NEIGHBORHOODS.

I BELIEVE IT'S NEVER TOO LATE TO DO THE RIGHT THING BY OUR NEIGHBORHOODS.

SO ONCE AGAIN, I'M GOING TO MOVE THAT.

WE TABLE THIS SECOND READING UNTIL OUR SECOND MEETING IN AUGUST.

IN ORDER TO GIVE THIS COUNCIL MORE TIME TO CONSIDER WHETHER WE SHOULD SEEK ANOTHER LOCATION FOR THIS TRASH STATION.

ALL RIGHT. WE HAVE A MOTION TO POSTPONE.

AGENDA ITEM 8.1.

IS THERE A SECOND? LOOK AT THAT.

ALL RIGHT, MISS JOY GIVES A SECOND.

[00:40:01]

ALL OPPOSED.

PLEASE SAY NAY.

NAY. MOTION FAILS ONE SIX.

ALL RIGHT, MISS MARTINEZ-GARCIA, WE'RE BACK TO DISCUSSION ON AGENDA ITEM 8.1.

THANK YOU, MAYOR.

AND I THINK TODAY'S WEATHER IS A PERFECT EXAMPLE TO DEMONSTRATE THE NEED FOR IMPROVING THE QUALITY OF LIFE OF OUR CITIZENS.

SOMETIMES OUR DECISIONS ARE NOT POPULAR, BUT RATHER, YOU KNOW, THEY WILL HAVE SOME RESISTANCE.

FOR SINCE 2003, WE HAVE BEEN STUDYING THIS PATTERN AND THE GROWTH HAS CONTINUED TO HAPPEN.

IT'S NOT BECAUSE WE WANT TO JUST FORCE THIS ON THE PUBLIC.

THIS HAS BEEN AN ONGOING ISSUE FOR A NUMBER OF YEARS, AND WE'RE TRYING TO IMPROVE THE QUALITY OF LIFE FOR THOSE FOLKS.

WE'RE TRYING TO SERVE THE NEEDS OF THAT AREA, AND IT'S GOING TO BENEFIT US ALL, BUT MOSTLY THAT AREA IN COMPARISON, COMPARISON, COMPARING THAT IS THIS ISSUE TO THE SINGLE FAMILY HOME DWELLINGS. IT'S NOT COMPARABLE, MARK.

IT JUST IS NOT COMPARABLE.

THOSE ARE TWO DIFFERENT SUBJECTS I VOTED AGAINST.

WITH YOU BECAUSE I SAW THAT THESE WERE SHOULDER TO SHOULDER.

THIS IS NOT SHOULDER TO SHOULDER.

THIS IS.

IN THE MIDDLE OF 60 ACRES.

THIS IS SO IMPORTANT FOR THE SERVICE THAT WE'RE PROVIDING.

AND AS I MENTIONED, TODAY'S WEATHER DEMONSTRATES BECAUSE OUR LANDFILLS ARE CLOSED RIGHT NOW, WE COULD STILL BE DOING WORK.

WE COULD STILL HAVE SOLID WASTE OUT AND ABOUT PICKING UP TRASH AND KEEPING IT THERE TEMPORARILY UNTIL WE COULD THEN TAKE IT TO THE LANDFILL.

SO I DISAGREE WITH YOU RESPECTFULLY, BUT IT IS IMPORTANT FOR US NOT TO CALL THIS A TRASH STATION.

THIS IS A TRANSFER STATION.

THAT IS EXACTLY WHAT IT IS.

FURTHER, WE CANNOT ADD MORE MISINFORMATION, AND A LOT OF WHAT YOU SAID IN YOUR STATEMENT IS WHAT THAT DID.

SO IF THE PUBLIC WANTS FACTS, I URGE YOU TO CALL CITY HALL TO VISIT OUR WEBSITE TO CALL FOLKS.

AND THIS IS NOTHING AGAINST OUR CITIZENS.

WE'RE DOING THIS FOR THE GREATER GOOD OF OUR CITY.

THANK YOU. DOCTOR WILSON.

YEAH. I ALSO AGREE WITH CHRISTIE.

I THINK MR. MCBRAYER COMPARES APPLES TO ORANGES HERE.

AND WE HAVE THREE MAJOR ARTERIAL ROADS THAT ARE GOING TO BE BUFFERS BETWEEN THIS FACILITY AND ANY NEIGHBORHOOD.

I ALSO URGE MR. MCBRAYER TO GO VISIT THESE STATIONS.

I HAVE NOW VISITED THREE OF THEM, AND THEY ALL SIT WITHIN VERY CLOSE PROXIMITY TO PARKS, TO SOCCER FIELDS, TO HOMES, TO FIRST RESPONDERS, TO FIRE STATIONS, TO EVERYTHING THAT IS WITHIN OUR CITY.

WE ARE NO DIFFERENT THAN CITIES SUCH AS DALLAS, PLANO, RICHARDSON, WICHITA FALLS.

WE HAVE TO MAKE TOUGH DECISIONS, AND I DON'T APPRECIATE WHEN POLITICIANS MAKE DECISIONS THAT ARE BASED ON ELECTIONS AND CAMPAIGNING.

AND I ENCOURAGE ALL OF US TO DO WHAT'S RIGHT AND WHAT'S BEST FOR OUR CITY AND OUR GROWTH OF OUR CITY.

AND SO I WILL ALWAYS SUPPORT THIS, EVEN WHEN IT DOES BRING SOME HARSH CRITICISM.

THANK YOU. MR. MCBRAYER POINT OF ORDER ON THAT COMMENT.

I DON'T BELIEVE IT IS. APPLES AND ORANGES.

WHEN YOU TALK ABOUT WHAT THESE CITIZENS FEEL AND BELIEVE, AND I DON'T BELIEVE THEIR CONCERNS ARE INVALID, I BELIEVE I'VE DRIVEN OUT THERE.

I'VE SEEN WHAT THE STREETS ARE LIKE.

I KNOW WHAT IT'S GOING TO BE LIKE OUT THERE.

I DON'T THINK IT'S WELL SUITED, BUT ALL I'M ASKING FOR US IS TO TAKE AN OPPORTUNITY.

ALL I ASKED FOR WAS FOR US TO TAKE AN OPPORTUNITY TO STEP BACK AND TAKE ANOTHER LOOK AT IT AND SEE IF THERE WAS ANOTHER LOCATION.

OUT OF RESPECT FOR THESE PEOPLE AND THEIR CONCERNS, I REMEMBER THE PICTURES THAT WERE SHOWN TO US OF OTHER FACILITIES, AND THERE WERE WIDE SPACES AROUND THEM, AND THERE WAS VERY GOOD ACCESS TO THEM OFF OF THE ROADS THAT LED TO THEM TOTALLY DIFFERENT FROM THE SITUATION THAT EXISTS WHERE WE'RE GOING TO BE BUILDING THIS.

SO, I PARDON ME, BUT I DO NOT AGREE.

IT'S APPLES AND ORANGES.

WHEN PEOPLE WHEN THESE PEOPLE ARE CONCERNED ABOUT THEIR SAFETY AND THE VALUE OF THEIR HOMES AND THEIR NEIGHBORHOODS AND THE TRAFFIC.

SO, I REJECT THAT COMPARISON.

MISS MARTINEZ-GARCIA.

[00:45:01]

ONCE AGAIN, WE MUST STICK TO THE FACTS AND NOT FUEL THE MISINFORMATION.

IT IS NOT A GOOD THING FOR US TO BE DOING.

AND FURTHERMORE, IF YOU RECALL, WE HAD SOME FOLKS DURING THE PLANNING AND ZONING MEETINGS AND EVEN HERE AT COUNCIL THAT MADE REFERENCE THAT THEY SHOULD PUT THEIR TRASH WHERE IT BELONGED IN DISTRICTS ONE AND TWO.

AND YOU KNOW, I THERE IS NO RIGHT PLACE THIS IS GOING TO BE SERVING THOSE FOLKS IN THAT DISTRICT.

AND IT IS A NECESSITY FOR THE CITY TO CONTINUE TO GROW.

IN CASE YOU HAVEN'T NOTICED, OUR CITY IS GROWING RAPIDLY AND WE HAVE TO FACE THIS ISSUE HEAD ON.

SO PLEASE STICK TO THE FACTS.

THIS IS ALL THAT I'M ASKING OF YOU, BECAUSE IT IS IMPORTANT FOR OUR CITIZENS TO BE AWARE THAT THIS IS NOT BASED ON ONE DISTRICT OR ANOTHER. WELL, I GUESS IT IS, BECAUSE THIS IS WHERE THERE IS A NEED AND WE'RE JUST TRYING TO FULFILL THAT NEED.

ALL RIGHT. THANK YOU, MISS MARTINEZ.

GARCIA. ALL RIGHT. I DON'T KNOW THAT THEY'RE GOING TO BE.

ANY OTHER COMMENTS. IF WE HAVE ANY OTHER COMMENTS, LET'S DIRECT THEM TOWARD THE DISCUSSION AND NOT TO SPECIFIC.

COUNCIL MEMBERS, I WOULD LIKE TO SAY, BASED ON THE LAST MEETING THERE WAS A LOT OF QUESTION AND DISCUSSION I DON'T THINK WAS EXACTLY ACCURATE INFORMATION.

COUNCIL STARTED VOTING ON THIS, I THINK THE FIRST VOTE, AND I BELIEVE ONE OF THE NEWS ARTICLES CAME OUT AUGUST 23RD OF 2023.

WE'VE HAD EXECUTIVE SESSION MEETINGS OVER THIS.

THIS HAS BEEN A COMPLETE AND TOTAL COUNCIL IN FAVOR OF THIS PROJECT.

FROM THE BEGINNING UNTIL TWO WEEKS AGO, WE VOTED ON IT.

WE PURCHASED THE LAND.

THIS WAS NOT SOMETHING THAT JUST SNUCK IN AT THE LAST MINUTE.

I THINK FOR THE LAST 18 MONTHS, THIS HAS BEEN TALKED ABOUT.

THIS HAS BEEN DISCUSSED. THERE'S BEEN PLANS ON IT.

SO, ONE OF THE POINTS I WANTED TO MAKE WAS THIS IS NOT SOMETHING WE JUST DID AT THE DROP OF A HAT AND JUST SUDDENLY UP AND WOKE UP ONE DAY AND DECIDED, WE'RE GOING TO PUT A TRANSFER STATION IN THIS LOCATION.

IT'S BEEN ONGOING FOR MONTHS AND MONTHS, IN FACT, IF NOT YEARS.

AND SO, THE IDEA THAT WE POSTPONE SOMETHING THAT'S SO MUCH WORK HAS GONE INTO AND THAT WE'VE ACTIVELY DISCUSSED, IT'S GOING TO HELP THE ENTIRE CITY.

AND NOT JUST ONE AREA OR SPECIFICALLY ANOTHER CITY.

I THINK IT'S ANOTHER CITY AND DEVELOPMENT IN ANOTHER CITY THAT IS MOST ACTIVELY AGAINST THIS.

AND AS THE MAYOR AND I THINK AS SEVERAL COUNCIL MEMBERS, WE'RE HERE TO DO WHAT'S BEST FOR THE CITY OF LUBBOCK.

THAT'S OUR JOB. THAT'S WHAT WE'RE TASKED WITH.

AND SO, I THINK THIS IS GOOD FOR DISTRICT ONE.

THIS IS GOOD FOR DISTRICT TWO, THREE, FOUR, FIVE AND SIX.

AND I THINK THIS IS A PROGRAM A PROJECT THAT YOU'LL SEE FRUIT FROM.

IT WILL PAY FOR ITSELF VERY QUICKLY.

I'M EXCITED ABOUT THIS PROJECT, AND I THINK THAT WE HAVE SHOWN SOLIDARITY AS A COUNCIL IN THE PAST.

I THINK WE WILL IN THE FUTURE.

AND ON THIS PARTICULAR PROJECT.

IT'S BEEN SOLID UNTIL TWO WEEKS AGO.

IS THERE ANY DISCUSSION FURTHER ON AGENDA ITEM 8.1? ALL RIGHT.

WE HAVE A MOTION AND A SECOND. ALL IN FAVOR OF APPROVAL OF 8.1, PLEASE SAY AYE.

AYE. ANY OPPOSED? MOTION CARRIES 6 TO 1.

ALL RIGHT, 8.2.

HARVEY, ARE YOU UP? HELLO.

[2. Resolution - Lubbock Power & Light: Consider a resolution amending the Fiscal Year 2023-24 Delivery Service Rate/Tariff Schedule pursuant to §2.03.415(a) of the City of Lubbock Code of Ordinances.]

WE HAVE THREE AMENDMENTS IN THAT TWO ARE GOING TO BE RELATED TO OUR DISTRIBUTED GENERATION RATES.

WE HAVE ONE FOR RESIDENTIAL AND ONE FOR COMMERCIAL.

LESS THAN 10,000 KILOWATT HOURS.

WE WOULD SEEK TO SUSPEND THOSE TWO.

THE REASON BEING IS THAT AS PART OF ERCOT AND THE MARKET.

WE'VE HAD A PROCESS WHERE WHEREBY WE NET GENERATION AND GENERATION AND USAGE OF ENERGY FOR OUR DISTRIBUTION CUSTOMERS. THESE ARE SOLAR PANEL CUSTOMERS THAT GENERATE THEIR OWN POWER.

WE NET THAT THE MARKET DOES NOT NET.

THE MARKET BASICALLY WILL LOOK AT IT AS WHAT IS BEING CONSUMED BY A CUSTOMER AND WHAT HAS BEEN PRODUCED.

SO, IN CONFORMANCE WITH THAT, WE NEED TO SUSPEND THESE TWO RATES TO ALLOW FOR A SINGLE RATE.

AND THEY WOULD JUST GO BACK TO THE RATE THAT WE HAVE ESTABLISHED FOR DELIVERY RATE FOR RESIDENTIAL, AND THEN ALSO FOR COMMERCIAL CUSTOMERS LESS THAN 10,000 KILOWATT HOURS. THE.

THE OTHER PART OF THE THIRD AMENDMENT WOULD BE TO AMEND THE STREET LIGHT RATE FROM 26.8 CENTS DOWN TO THE 1717 POINT $0.04 PER KILOWATT HOUR.

THAT WAS AN ERROR THAT WE HAD LET SLIP THROUGH.

WE NEED TO AMEND THAT.

AND THOSE ARE THE THREE AMENDMENTS TO OUR DISTRIBUTION RATE STRUCTURE TARIFF FOR BRINGING FOR THE CITY COUNCIL.

[00:50:05]

SO, THIS IS AN ACTUAL AMENDMENT TO SOMETHING BEFORE US.

I'M SORRY. CORRECT. THAT IS CORRECT.

YES. OKAY. ALL RIGHT, MR. MCBRAYER, YOU HAVE A QUESTION? OF HARVEY? YES.

HARVEY ON YOU TALKING ABOUT THE SOLAR PANEL CUSTOMERS.

IS THIS WHAT YOU'RE TALKING ABOUT? TWO DIFFERENT RATES.

THESE ARE THE RATES FOR DISTRIBUTED GENERATION CUSTOMERS.

CORRECT? OKAY.

IS THIS DIFFERENT FROM WHAT THEY'VE COME TO RELY ON IN THE PAST? DOES THIS CHANGE SOMETHING THAT WILL COME AS A SURPRISE TO THEM OR HOW WILL IT AFFECT THEM? THIS IS GOING TO BE A MOVE TO THE MARKET.

WHEN WE MADE THE DECISION TO MOVE TO MARKET, THIS IS GOING TO BE DIFFERENT THAN WHAT WE CURRENTLY DO CURRENTLY.

THE UP UNTIL NOW, FOR THE PRIOR YEARS, WE HAVE TAKEN ALL THE NET, ALL THE GENERATION FOR A CUSTOMER AND NETTED AGAINST USAGE.

IF THAT GENERATION OR PRODUCTION OF POWER EXCEEDS THEIR USAGE, THEY GET NOTHING FOR THAT.

WHAT WE WHAT IS BEING PROPOSED, WHAT WILL BE HAPPENING IN THE MARKET, WILL BE A BENEFIT TO THOSE CUSTOMERS THAT THEY WILL BE ALLOWED TO.

THEY WILL BE ALLOWED TO GET FULL, FULL BENEFIT FOR THEIR GENERATION.

SO WE HAVE MULTIPLE MULTIPLE REPS OR RETAIL ELECTRIC PROVIDERS THAT WILL GIVE YOU A PROGRAM WHEREBY THEY'LL PAY YOU FOR THAT GENERATION IN EXCESS OF YOUR USAGE. SO, IT'S A NET BENEFIT TO THEM.

IT'S A NET BENEFIT. THAT'S CORRECT.

THANK YOU. ALL RIGHT.

ANY OTHER QUESTIONS OF HARVEY ON 8.2.

ALL RIGHT. THANK YOU, SIR.

OH, I CAN SEE YOUR FURROWED BROW.

THE FURROWED BROW.

I SAW THAT THAT QUESTION, MISS JOY.

YES, MA'AM. YOURS YOU GAVE ON STREETLIGHTS? YES. YOU GAVE A $0.17 OR SOMETHING.

AND I JUST REMEMBERED THE LAST COUNCIL MEETING.

WE APPROVED THE CONTRACT WITH TXU FOR ALL OF THE CITY'S ENERGY, WHICH INCLUDED THE STREETLIGHTS.

CORRECT. SO THAT'S WHAT I WAS TRYING TO.

THIS WOULD NEED TO BE. THIS WOULD BE AN AMENDMENT TO MAKE SURE THAT THAT $0.17.

AN AMENDMENT TO OUR CURRENT RATE STRUCTURE, OUR DELIVERY RATE STRUCTURE DISTRIBUTION.

THAT'S CORRECT. THIS TAKES IT FROM .26 TO .17.

THAT'S EXACTLY WHAT IT SHOULD BE.

SO, THE REDUCTION. YEAH, I JUST WANT TO MAKE SURE.

YES, SIR. THAT'S WHAT IT WAS.

THAT'S EXACTLY WHAT IT IS.

THANK YOU.

JEFF HARVEY.

WAY TO RECOGNIZE THE GIRL I JUST SAW.

THE QUESTION IS.

ALL RIGHT. THANK YOU VERY MUCH.

APPRECIATE IT. ALL RIGHT.

WE HAVE 8.2 BEFORE US.

IS THERE A MOTION TO APPROVE? 8.2.

THANK YOU, MISS MARTINEZ.

GARCIA, IS THERE A SECOND? SECOND? THANK YOU, MR. MASSENGALE.

ANY FURTHER DISCUSSION? QUESTIONS OF STAFF HARVEY ON 8.2.

ALL RIGHT. THIS AMENDMENT IS FOR US UNDER 8.2.

ALL IN FAVOR OF APPROVAL OF 8.2.

PLEASE SAY AYE. AYE.

ANY OPPOSED? MOTION CARRIES 7 TO 0.

ALL RIGHT. IT IS 2:30 ON THIS 27TH DAY OF FEBRUARY OF 2024.

AND COUNCIL IS ADJOURNED.

* This transcript was compiled from uncorrected Closed Captioning.