[ Council Government Performance & Financial Management Committee on May 27, 2025.]
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OKAY. EVERYBODY, WELCOME BACK. HAPPY LATE MEMORIAL DAY WEEKEND.
IT IS MAY 27TH, 2025. I'M GOING TO CALL THIS MEETING OF THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE TO ORDER AT 1:06 P.M. WELCOME. OUR FIRST ITEM ON THE AGENDA IS THE APPROVAL OF THE APRIL 22ND, 2025 MINUTES. DO I HAVE A MOTION? MOTION FOR APPROVAL.
OKAY, I HEARD A MOTION A SECOND. ALL THOSE IN FAVOR SAY AYE.
AYE. ALL RIGHT. ANY OPPOSED? MOTION PASSES. ALL RIGHT.
AND, COLLEAGUES, JUST AS A LITTLE BIT OF HOUSEKEEPING FOR US HERE WE HAVE SEVERAL ITEMS ON HERE THAT WE, WE HAVE TO GO THROUGH TODAY. AND THAT PRETTY MUCH INCLUDES A THROUGH C.
WE'RE ALSO GOING TO GO THROUGH A LITTLE BRIEF OVERVIEW OF ITEM D, WHICH WE COVER OUR REAL ESTATE.
OF COURSE, EVERY MONTH HERE IN GPFM, I'M GOING TO RECOMMEND, UNLESS ANYONE HAS ANY STRONG OBJECTIONS THAT WE DO THE AUDIT OF STEMMONS NEXT MONTH JUST SO THAT WE ALL HAVE TIME TO, TO DIGEST THAT A LITTLE BIT.
SO THIS IS ONE I'D LIKE TO SPEND A LOT OF TIME ON.
AND THEN I THINK WE'LL JUST GO THROUGH THE REST OF THEM, AND, AND IF WE HAVE QUESTIONS AND THEY NEED TO COME BACK, WE CAN BRING THEM BACK. BUT ITEM I IS THE PLAN BUDGET.
AND THAT'S 90 PAGES OF DOCUMENTS WHICH I DO APPRECIATE STAFF GIVING US EARLY, BUT I DON'T ANTICIPATE WE'RE GOING TO GO THROUGH ALL 90 PAGES AND BRING EVERY ONE OF THOSE DEPARTMENTS UP HERE TODAY.
ALL RIGHT THEN WE'LL MOVE FORWARD ON ITEM A, WHICH IS THE AD VALOREM TAX RELIEF FOR OVER 65.
TAKE IT AWAY. GOOD AFTERNOON. HI. HOW YOU DOING? I'M GOOD. LISTEN, HERE'S WHAT IT IS. CARA. YOU'RE NOT ON MUTE.
CAN YOU MUTE, PLEASE? GOOD AFTERNOON. JEANETTE WEEDEN, DIRECTOR OF BUDGET AND MANAGEMENT SERVICES.
JOINING ME HERE AT THE TABLE, SUZANNE ZIEMAN, OUR BUDGET ADMINISTRATOR.
I AM HERE TO PRESENT ITEM A, WHICH IS PROPERTY TAX RELIEF FOR OVER 65 AND DISABLED HOMEOWNERS.
MOVING ON TO SLIDE NUMBER TWO, I'M GOING TO PROVIDE A BRIEF OVERVIEW OF PROPERTY TAXES, DISCUSS OUR CURRENT EXEMPTIONS AND REVIEW OPTIONS PER THE FINANCIAL POLICY AND NEXT STEPS. SLIDE NUMBER THREE.
PROPERTY TAXES, AS YOU KNOW, ARE THE SINGLE LARGEST REVENUE SOURCE FOR THE CITY AT 1.49 BILLION.
REVENUE IS SPLIT 72% AND 28% BETWEEN OPERATING AND MAINTENANCE.
PROPERTY TAXES ARE BASED ON THREE FACTORS PROPERTY VALUE DETERMINED BY THE APPRAISAL DISTRICT'S EXEMPTIONS ALLOWED BY STATE AND SET BY THE CITY COUNCIL, AND THE TAX RATE THAT'S SET BY THE CITY COUNCIL.
ON SLIDE NUMBER FOUR, YOU CAN SEE THAT THE CURRENT TAX RATE IS 70.4 $0.07 PER 100 VALUATION.
THIS RATE WAS ADOPTED BY CITY COUNCIL BACK IN SEPTEMBER OF 2024.
CITY COUNCIL HAS LOWERED THE TAX RATE FOR THE LAST NINE YEARS.
THAT'S BEEN A TOTAL REDUCTION OF 9.2 $0.03, OR 11.6%.
AND THE REVENUE FOREGONE OF THOSE CHANGES IS APPROXIMATELY 175.9 MILLION.
WE HAVE REPORTED IN THE BUDGET ACCOUNTABILITY REPORT THAT THAT VALUE HAS DECLINED TO ABOUT 214.2, OR 4% SINCE CERTIFIED PROPERTY IS CATEGORIZED BY USE OR PURPOSE.
AND SO 47% IS CONSIDERED RESIDENTIAL AND 53% IS CONSIDERED NONRESIDENTIAL, WHICH IS COMMERCIAL AND BUSINESS PERSONAL PROPERTY. THE SPLIT HAS REMAINED CONSISTENT BASED ON 1 OR 2 PERCENTAGE POINTS OVER THE LAST FEW YEARS.
TAXABLE PROPERTY VALUE REPRESENTS MARKET VALUE, WHICH IS NET OF EXEMPTIONS.
THERE ARE A TOTAL OF 62.3 BILLION IN TOTAL EXEMPTIONS IN THE CURRENT FISCAL YEAR, AND THAT HAS RESULTED IN REVENUE FOREGONE OF 438.9 MILLION. THERE ARE THREE EXEMPTIONS THAT ARE AUTHORIZED BY THE CITY AND CAN BE MODIFIED BY THE CITY COUNCIL.
THE 20% HOMESTEAD EXEMPTION. THIS IS THE MAXIMUM AMOUNT ALLOWED BY STATE LAW.
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THIS WAS ENACTED BACK IN 1988. THE AGE 65 OR DISABLED EXEMPTION, WHICH WAS LAST MODIFIED LAST YEAR IN THE TOPIC OF TODAY'S DISCUSSION.ON SLIDE NUMBER SIX, YOU CAN SEE THAT WE'VE GROWN THE EXEMPTION VALUES FROM 2020, FROM 22 BILLION IN FISCAL YEAR EIGHT TO THE CURRENT VALUE OF 62.3 BILLION IN FISCAL YEAR 25. THE FISCAL YEAR, OR THE 62.3 BILLION RESULTS, AS I MENTIONED, IN 438.9 MILLION IN REVENUE FOREGONE, OR ESSENTIALLY A TAX RATE REDUCTION OF .2074.
ON SLIDE NUMBER SEVEN. THE HOMESTEAD EXEMPTION IS DETAILED HERE ON SLIDE SEVEN.
CITY COUNCIL AUTHORIZED THIS EXEMPTION OF 20% BACK IN 1988.
THIS OFFERS ACROSS THE BOARD TAX RELIEF FOR ALL HOMEOWNERS AND REDUCES THE RESIDENT'S TAX BILL.
THIS EXEMPTION REPRESENTS 126.9 MILLION OF REVENUE FOREGONE OF THE TOTAL, 438.9 MILLION.
ON SLIDE NUMBER EIGHT, WE'RE SHOWING THE CHILDCARE FACILITIES.
AS I MENTIONED, THIS EXEMPTION WAS AUTHORIZED IN FEBRUARY OF 2024.
IT PROVIDES 100% EXEMPTION FOR QUALIFIED CHILDCARE FACILITIES.
THIS EXEMPTION REPRESENTS $3.9 MILLION IN VALUE, EXEMPT FROM TAXATION, AND APPROXIMATELY 27,000 IN REVENUE FOREGONE AND THEN MOVING ON TO THE FINAL EXEMPTION THAT'S CURRENTLY OFFERED BY THE CITY, THE OVER 65 DISABLED EXEMPTION.
THE HISTORY OF THIS EXEMPTION IS DETAILED HERE ON SLIDE NUMBER NINE.
CITY COUNCIL INITIALLY AUTHORIZED THE EXEMPTION AT 50,000 IN 1986.
IT WAS LATER INCREASED TO 64,000 IN THE SAME YEAR.
WE ARE REQUIRED TO COMPARE THIS EXEMPTION TO THE MOST RECENT CONSUMER PRICE INDEX FOR THE ELDERLY AND THE YEAR OVER YEAR CHANGE IN THE MEDIAN RESIDENTIAL MARKET VALUE. AND THEN, OF COURSE, THIS EXEMPTION WAS REVISED RECENTLY ON MARCH 26TH TO REFLECT THE MEDIAN VALUE AS OPPOSED TO THE ANNUAL VALUE OR AVERAGE VALUE. I'M SORRY. ON SLIDE NUMBER TEN, YOU CAN SEE THAT BASED ON THE CURRENT HOMESTEAD EXEMPTION AT 20% AND THE CURRENT OVER 65 EXEMPTION AT 153,400, ELIGIBLE HOMEOWNERS WITH A PROPERTY MARKET VALUE OF 191,750 OR LESS, PAY NO CITY TAXES. THIS SLIDE ALSO REFLECTS THE HISTORICAL CHANGE IN THIS EXEMPTION BEGINNING IN 2024, AS I MENTIONED, OR FOR 2025, THIS OR BEGINNING IN 2021, THIS WAS CHANGED TO AN ANNUAL ANALYSIS.
AND SO THE TABLE ON THIS SLIDE REFLECTS PRIOR APPROVALS OF THE FMPC.
AND AGAIN, CITY COUNCIL MODIFIED IT THIS PAST MARCH TO REFLECT THE MEDIAN VALUE.
AND THEN OF COURSE, THESE EXEMPTIONS ONLY APPLY TO THE CITY OF DALLAS LIST.
COMPARING FISCAL YEAR 2017 TO FISCAL YEAR 25, REVENUE FORGONE HAS INCREASED BY 164%, OR $42.2 MILLION IN REVENUE FORGONE. ON SLIDE NUMBER 12, AS PREVIOUSLY MENTIONED, THE ANNUAL REVIEW OF THIS EXEMPTION IS REQUIRED PER THE CITY'S FINANCIAL POLICY. ANNUALLY, WE COMPARE THIS EXEMPTION AND MAKE A RECORD AND PROVIDE INFORMATION BASED ON TWO CRITERIA.
SO A COMPARING IT TO THE MOST RECENT ANNUAL CONSUMER PRICE INDEX FOR THE ELDERLY, WHICH IS A CP, OR COMPARING IT TO THE YEAR OVER YEAR CHANGE IN MEDIAN RESIDENTIAL MARKET VALUE.
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COUNCIL PRIOR TO JUNE 30TH SO THAT WE CAN COMMUNICATE THOSE CHANGES TO THE APPRAISAL DISTRICTS.MOVING ON TO SLIDE NUMBER 13. WE ARE SHOWING THE RESULTS OF THE ANALYSIS.
SO COMPARING THE EXEMPTION TO THE MOST RECENT CPI WOULD RESULT IN AN INCREASE OF 2.59%.
SO THE RESIDENTIAL THE MEDIAN RESIDENTIAL MARKET VALUE INCREASED FROM 334,000 TO 381,000.
ON SLIDE 14, WE ARE SHOWING THE ANALYSIS OF EACH OF THE SCENARIOS.
SO SCENARIO A REFLECTS THE CHANGE IN CPI WITH THIS OPTION.
THE OVER 65 DISABLED EXEMPTION, IF APPROVED BY COUNCIL, WOULD INCREASE FROM 153,400 TO 157,373. BASED ON THE CURRENT NUMBER OF ACCOUNTS WE ARE SHOWING.
THE VALUE OF THIS EXEMPTION AT 290 MILLION, WITH THE REVENUE FOREGONE OF APPROXIMATELY 2 MILLION.
THIS OPTION RESULTS IN A TAX BILL CHANGE OF $28 BASED ON THE MEDIAN VALUE.
OPTION TWO REFLECTS THE CHANGE IN MEDIAN VALUE, WHICH IS 13.99%.
THIS OPTION RESULTS IN A TAX BILL CHANGE OF 152.22, OR $152.22, BASED ON THE MEDIAN VALUE.
OTHER TAX RELIEF OPTIONS ARE INCLUDED HERE ON SLIDE 15.
AND ON SLIDE 16, THE LAST SLIDE REFLECTS THE ANALYSIS BASED ON THE CITY'S FINANCIAL POLICY.
SO THERE IS AN OPTION TO INCREASE THIS EXEMPTION FROM 153,400 TO 175,000, BASED ON COMPARISON OF THE YEAR OVER YEAR CHANGE IN MEDIAN VALUE.
IF THIS COUNCIL PROVIDES A RECOMMENDATION TO MOVE THIS FORWARD, CITY COUNCIL WILL CONSIDER THIS EXEMPTION ON JUNE 11TH AND THE CHANGE WILL BE COMMUNICATED TO THE APPRAISAL DISTRICTS BY JUNE 30TH FOR IMPLEMENTATION FOR THE 2025 TAX YEAR.
SLIDE 16 CONCLUDES THE PREPARED REMARKS. HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
ALL RIGHT. THANK YOU FOR THAT. AND TO BE CLEAR, WE WILL NEED A MOTION.
I UNDERSTAND FROM THE CITY ATTORNEY TO TAKE TO COUNCIL ON THIS.
SO, MR. MORENO, I THINK, PREPARED TO DO THAT WHEN WE'RE READY.
COLLEAGUES, I'LL START IN THE VIRTUAL WORLD. WHO'S GOT QUESTIONS? ANYBODY? I'M SEEING SOME NOS. OKAY. PREPARED FOR MOTION.
YES. RECOMMENDING INCREASING THE AGE 65 AND OLDER OR DISABLED.
EXEMPTION FROM 153 400 TO 175,000. SECOND. THAT'S A MOTION.
AND A SECOND. ALL THOSE IN FAVOR SAY AYE. AYE.
WAIT, WAIT, WAIT, WAIT. IS THERE A DISCUSSION? OH, USUALLY THERE'S DISCUSSION OF EMOTION. WELL, IT'S BEEN SECONDED.
SURE. LET'S HAVE SOME DISCUSSION. WE'LL HOLD. WE'LL HOLD OFF ON THE VOTE. GO AHEAD. WOULD YOU LIKE TO GO? SURE. ALL RIGHT. TAKE IT AWAY. SO I WAS JUST WONDERING HOW THE EXACT NUMBER OF 175,000 CAME TO BE.
SO THANK YOU FOR THAT QUESTION. THE NUMBER WAS ACTUALLY ROUNDED UP.
THE CALCULATED AMOUNT IS 174,881. SO THE ROUND FIGURE OF 175,000 WAS PROVIDED AS AN OPTION. AND THAT'S HISTORICALLY HOW WE'VE APPROACHED THIS EXEMPTION.
OKAY. AND SO I'M JUST GOING TO SAY I SUPPORT THE OPTION B WITH THE HIGHER AMOUNT.
BUT CAN YOU SPEAK TO THE IMPACT FOR THE OTHER PROPERTY OWNERS ON WHAT IT MEANS TO MAKE THIS LARGE OF AN ADJUSTMENT IN THE EXEMPTION? SO, THIS IS JUST ONE OF MANY EXEMPTIONS THAT THE CITY PROVIDES AND OR THAT ARE PROVIDED BY THE STATE. SO ANYTIME YOU, I GUESS, PROVIDE AN EXEMPTION TO ONE GROUP OR CLASS OF TAXPAYERS, IT SHIFTS THE BURDEN TO OTHER GROUPS OR CLASSES OF TAXPAYERS. BUT THIS EXEMPTION IS ONE OF MANY.
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OR REDUCING THEIR TAX BURDEN? WHO IS GOING TO BEAR A GREATER COST? I DON'T HAVE THAT ANALYSIS. WE WOULD HAVE TO GET BACK TO YOU WITH THAT ANSWER.WELL, AND IF I MAY JUST ADD TO IT, JACQUELINE CHIEF FINANCIAL OFFICER, SO THE OTHER CLASSES OF TAXPAYERS ARE YOUR COMMERCIAL PROPERTY OWNERS AND YOUR RESIDENTIAL PRE 65 PROPERTY OWNERS. SO THOSE THOSE TAXPAYERS WOULD NOT HAVE THE OPPORTUNITY TO TAKE ADVANTAGE OF THIS ADDITIONAL EXEMPTION.
AND I GUESS BY DEFINITION, THEREFORE THEY WOULD HAVE A GREATER TAX BURDEN.
IF YOU'RE GIVING A TAX RELIEF TO ONE GROUP THAT DOESN'T INCLUDE THEM.
SO, IT'S A RELIEF TO THE OVER 65 HOMEOWNERS. IT WOULD BE ADDITIONAL BURDEN TO COMMERCIAL AND NON 65 HOMEOWNERS AND COMMERCIAL INCLUDES MULTIFAMILY PROPERTY OWNERS.
CORRECT. IT DOES. WHO DON'T HAVE ANY KIND OF HOMESTEAD EXEMPTION.
CORRECT. THAT IS CORRECT. THEY DO NOT HAVE A HOMESTEAD EXEMPTION THEIR COMMERCIAL PROPERTIES.
SO BECAUSE WE'RE OPERATING UNDER SB TWO WHERE WE CAN ONLY GO UP TO 3.5% ON PROPERTY TAX REVENUE, THAT IS EXISTING REAPPRAISALS BY ADDING THIS EXEMPTION IN WHAT THAT MEANS IS THAT 3.5% WOULD BE A HIGHER AMOUNT FOR THE OTHER PEOPLE, BECAUSE IF WE HAD LEFT THIS AS IT IS, WHICH I DON'T THINK WE SHOULD, BUT IF WE DID, THEN THAT NUMBER WOULD HAVE TO COME DOWN FOR THEM GREATER THAN WHAT IT'S GOING TO.
IS THAT CORRECT? THAT IS CORRECT. BECAUSE OF THE 3.5% REVENUE CAP ON PROPERTY TAX REVENUE, WE BELIEVE THAT WE WILL HAVE TO LOWER THE TAX RATE AGAIN THIS YEAR, SIMILAR TO WE LOWERED IT LAST YEAR.
IF YOU GIVE A TAX EXEMPTION TO ONE GROUP, THEN IT MAY RESULT IN US NOT LOWERING THE TAX RATE AS MUCH AS WE WOULD HAVE OTHERWISE HAD WE NOT INCREASED THE EXEMPTION.
BUT YES, YOUR STATEMENT IS ABSOLUTELY CORRECT.
OKAY. WELL, SO I HAVE ALWAYS BELIEVED THIS IS A VERY IMPORTANT EXEMPTION BECAUSE OUR PROPERTY VALUES ARE INCREASING SO QUICKLY. THOSE VALUES JUST KEEP GOING UP AND UP AND UP.
WE'RE NOT REDUCING OUR TAX RATE AT THE SAME LEVEL THAT THE PROPERTY VALUES ARE INCREASING.
AND FOR SOMEONE WHO'S A SENIOR OR DISABLED AND LIKELY UNABLE TO WORK, THEY'RE SITTING ON A VERY TIGHT FIXED INCOME AND THE ABILITY TO PAY THE PROPERTY TAX IS EXTREMELY LIMITED.
BUT I JUST WANTED TO HAVE THIS DISCUSSION BECAUSE IT'S EXTREMELY IMPORTANT THAT WE CONSIDER THAT WE ARE SHIFTING TAX BURDEN TO OUR YOUNG FAMILIES, TO OUR RENTERS. AND, YOU KNOW, WE JUST HAVE TO BE VERY CAREFUL AS WE CONSIDER THESE TYPES OF POLICIES THAT WE'RE ACTUALLY INCENTIVIZING PEOPLE TO WANT TO COME LIVE HERE AND LIVE HERE COMFORTABLY.
SO THANK YOU FOR LETTING ME ASK THOSE QUESTIONS AND VERIFYING THAT INFORMATION.
AND, CHAIR, IF I MAY MAKE ONE ADDITIONAL POINT.
WE ARE AT THE STATE ALLOWED CAP ON OUR HOMESTEAD EXEMPTION OF 20%.
I KNOW THAT WAS AN ASK, AND I KNOW ALL OF THE COMMITTEE MEMBERS REALIZED THAT, BUT I JUST STATE IT FOR THE PUBLIC AS WELL, THAT WE ARE AT THE MAXIMUM THAT IS ALLOWED BY STATE LAW FOR OUR GENERAL HOMESTEAD EXEMPTION OF 20%.
THANK YOU FOR THE QUESTIONS AND THANK YOU FOR THAT CLARIFICATION.
I THINK THAT SHOULD GIVE OUR RESIDENTS, ESPECIALLY OUR SENIORS WHO ARE HOMEOWNERS, COMFORT.
YOU KNOW THAT THE CITY COUNCIL'S THIS ONE, AND CITY MANAGEMENT HAS DONE WHAT THEY CAN TO EASE THE BURDEN WHERE WE CAN BECAUSE WE CAN'T, YOU KNOW, WE ARE NOT. WE'RE NOT, WE'RE NOT SETTING THOSE RATES.
WHERE DO WE GET THAT INFORMATION FROM? FROM THE DCAD FILES.
SO WE LOOK AT THE MEDIAN VALUE AND LOOK AT AN ANALYSIS OF ALL PROPERTY ACCOUNTS FOR RESIDENTIAL.
SO OUR RESIDENTIAL OUR SINGLE FAMILY HOMES HAVE GONE UP IN THE LAST YEAR BY 14% IN VALUE.
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THAT'S CORRECT. AND AS ALWAYS TYPICALLY TIED TO THAT THE COSTS FOR PEOPLE BUYING INTO THE RESIDENTIAL MARKET.CORRECT. ALL RIGHT. THANK YOU. AND I JUST WANT TO CLARIFY AGAIN I'M SORRY.
THAT'S THE MEDIAN. THAT'S THE MEDIAN. IT DEPENDS ON WHAT YOUR PARTICULAR SITUATION IS.
SOME WENT UP BY MORE THAN THAT. SOME WENT UP BY LESS THAN THAT.
BUT THE MEDIAN WENT UP BY THE 14%, AND THE MEDIAN IS DIFFERENT FROM AVERAGE BECAUSE PREVIOUSLY WE USED AVERAGE, AND IT INCLUDE THOSE OUTLIERS. THE MOST EXPENSIVE VALUE AND THE LEAST EXPENSIVE VALUE.
SO NOW WE'RE USING MEDIAN WHICH IS THE MIDDLE.
SO. CORRECT. OKAY. VERY GOOD. THANK YOU EVERYBODY FOR THE QUESTIONS.
OH, I SEE. COUNCIL MEMBER WILLIS, I KNOW YOU HAD WANTED TO ASK SOMETHING EARLIER ON THIS.
DO YOU HAVE QUESTIONS. WELL AND I DON'T KNOW IF YOU'VE COVERED THIS, BUT IN CASE YOU HAVEN'T, MR. IRELAND, WE TALKED ABOUT THE LANGUAGE ON THE SLIDE THAT SAID RECOMMENDATION.
AND I THINK THE FM, PC BACK. I THINK YOU WERE ON IT, NUMBER 23.
IT DOESN'T ACTUALLY CALL FOR A RECOMMENDATION TO BE MADE.
THIS THIS IS ACTUALLY I THINK IT'S FORWARD A LITTLE.
IT'S ABOUT RECOMMENDATIONS AND NEXT STEPS. I THINK IT'S ACTUALLY THAT.
SLIDE 16. YES. OKAY. YOU'RE SHARING WHAT THE CALCULATION IS PER THAT GPMC DESIGNATION. YOU'RE JUST SHARING WHAT THAT CALCULATION WOULD BE. IT'S NOT NECESSARILY A CFO.
YOU'RE RECOMMENDING THAT WE, THE COUNCIL DO THIS.
AS COUNCIL? OF COURSE. IT'S YOUR Y'ALL HAVE THE SAY ON WHAT AMOUNT YOU WANT TO INCREASE IT TO.
SO THESE ARE THE CALCULATIONS REQUIRED BY THE FPC.
OKAY. AND I APPRECIATE THE EXPLANATION. WHEN I TUNED IN THAT YOU WERE GIVING BECAUSE WE'VE TALKED THROUGH THAT, YOU KNOW, WHERE THE BENEFIT FALLS. AND WE CERTAINLY DO NEED TO BE MINDFUL OF OUR SENIORS AND FIXED INCOMES AND LIMITED ABILITY TO GENERATE MORE INCOME AND THAT SORT OF THING. SO I JUST WANTED TO BE SURE THAT WE UNDERSTOOD THAT SINCE WE DON'T EVEN HAVE OUR BUDGET YET.
THIS IS WHAT THE NUMBER WOULD BE PER THAT CRITERIA.
THAT IS CORRECT. AND I'LL JUST ADD TO THAT IN ORDER FOR IT TO GO INTO EFFECT WITH THIS TAX YEAR, WE DO HAVE TO NOTIFY THE APPRAISAL DISTRICTS BY JUNE THE 30TH IN ORDER FOR IT TO GO INTO EFFECT WITH THE 2025 TAX YEAR.
ALL RIGHT. THANK YOU. ALL RIGHT, COLLEAGUES, WE HAVE A MOTION ON THE FLOOR.
ALL THOSE IN FAVOR SAY AYE. AYE. ANY OPPOSED? MOTION CARRIES. ALL RIGHT. THANK YOU. WE ARE MOVING ON TO ITEM B, THE OFFICE OF THE CITY AUDITOR.
2025-26 RECOMMENDED BUDGET. MR. SWANN, COME ON DOWN.
WELCOME MARK SWANN, CITY AUDITOR. AND ON MY LEFT IS MONMOUTH OF SPARKS, DEPUTY CITY AUDITOR.
WE'RE HERE TO TALK TO OUR, TO SEEK YOUR RECOMMENDATION FOR OUR BUDGET FOR THE 26 FISCAL YEAR.
IF YOU CAN GO TO THE SLIDE TWO AND THE OFFICE OF CITY AUDITOR'S MISSION IS TO ELEVATE PUBLIC TRUST IN GOVERNMENT BY PROVIDING INDEPENDENT, OBJECTIVE ASSURANCE AND ADVISORY SERVICES. AND TO ACCOMPLISH THAT, WE NEED MONEY.
SO, ON SLIDE THREE IS OUR RECOMMENDED BUDGET OF $3.4 MILLION WHICH IS TIES TO THE BUDGET OFFICE'S TARGET FOR THIS FISCAL YEAR THAT WAS RECOMMENDED TO US.
ITS CHANGES ARE MAINLY ON PERSONNEL WITH THE MERIT POTENTIAL 3% MERIT INCREASE BUILT IN, AND THEN OTHER CHANGES THAT WILL HAPPEN TO SACRED CODES FOR US GOING FORWARD. AND SO, THEN IF I'LL GO.
NOTABLE HIGHLIGHTS ON SLIDE FOUR, WHICH WE ALWAYS GIVE EACH YEAR.
SO, 2.7 MILLION IS FOR PERSONNEL COST, WHICH ALLOWS US TO HAVE 19.5 FULL TIME EQUIVALENTS.
TODAY WE HAVE 19 OF THE 19.5 POSITIONS FILLED.
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AND THEN THE REASON WE'RE HERE ON SLIDE FIVE, THE CHARTER HAS IT THAT THE OFFICE OF THE CITY AUDITOR'S BUDGET IS TO BE APPROVED INDEPENDENTLY PRIOR TO THE CITY MANAGER'S RECOMMENDATION.RECOMMENDED BUDGET. AND SO WE'RE HERE PRESENTING THAT TO YOU.
AND THEN ON SLIDE SIX WE HAVE OUR NEXT STEPS, WHICH IS WE'RE SEEKING A RECOMMENDATION TO THE FULL COUNCIL FOR APPROVAL OF OUR 2526 RECOMMENDED BUDGET OF $3,477,964, SUBJECT TO A VACANCY SAVINGS OF ONLY $33,498 THIS YEAR, AND TO THE FINAL WIDE CITY ADJUSTMENT DECISIONS THAT ARE DONE EVERY YEAR.
AND WE'RE SCHEDULED FOR CITY COUNCIL APPROVAL OF OUR BUDGET ON JUNE 11TH, 2025.
OUR PERFORMANCE METRICS AND OUR CURRENT ORGANIZATION CHART.
SO THAT CONCLUDES MY PRESENTATION. ALL RIGHT, COLLEAGUES, SO WE'LL WE ARE GOING TO TAKE A MOTION ON THIS AND THEN WE'LL TAKE DISCUSSION IF THERE'S A SECOND. SO, I'M GOING TO ASK MR. MORENO TO GO AHEAD. I MOVE TO RECOMMEND THE CITY COUNCIL APPROVE THE OFFICE OF THE CITY AUDITOR.
FISCAL YEAR 20 2526 RECOMMENDED BUDGET AS PROPOSED.
SECOND. ALL RIGHT. SO MOTION AND SECOND. QUESTIONS? ALL RIGHT. I SEE VICE CHAIR BLACKMON. GO AHEAD.
SORRY. WE HEARD YOU. OKAY. SORRY. OKAY. SO. THANKS, MARK.
I'M LOOKING AT YOUR APPENDIX, AND IT LOOKS LIKE YOU'RE RIGHT IN WITH WHERE YOU WANT TO BE.
IS THAT A FAIR STATEMENT? AS FAR AS YOU KNOW, PER AUDIT, FTE AMOUNTS, ET CETERA.
ON PAGE EIGHT, I'M JUST GOING TO THE RIGHT PLACE.
OH, OKAY. YES. WE LOOK AT WHERE WE'RE RIGHT IN THE MIDDLE OF THE MEDIAN THAT WE BELIEVE THAT WE'RE NOT THE LARGEST AND MOST EXPENSIVE ASSURANCE SERVICE FUNCTION, BUT WE'RE NOT THE CHEAPEST.
WE SEEM TO BE, I THINK, IN THE SWEET SPOT OF THE ACTUALLY A LITTLE BIT LOWER.
OKAY. DEPENDING ON WHICH METRIC YOU LOOK AT. WELL, AND I GUESS I WAS GOING TO ASK IF YOU HAVE EVERYTHING YOU NEED TO, BUT YOU'RE NOT INCREASING BUT JUST FOR MERIT.
SO, YOU'RE GOING TO MAINTAIN THE SAME WORKLOAD.
AND IT SEEMS LIKE YOU HAVE BEEN ACCOMPLISHING QUITE A BIT.
AND SO I GUESS WHAT I WANTED TO SAY IS THANK YOU FOR JUST, YOU KNOW, DOING THE WORK AND NOT COMING IN WITH A HUGE ASK AND UNDERSTANDING WHERE WE ARE IN TODAY'S ENVIRONMENT. BUT YOU'RE STILL IT LOOKS LIKE YOU'RE STILL GOING TO BE ABLE TO BE SUCCESSFUL.
YES, MA'AM. THANK YOU VERY MUCH. OKAY. THANK YOU.
AND I'LL JUST I DON'T SEE ANYBODY ELSE CHIMING IN, SO I'LL JUST ASK A QUESTION LIKE, WHAT CAN WE EXPECT FROM YOUR OFFICE IN THE NEXT YEAR? ARE THERE ANY BIG DIFFERENCES? JUST KIND OF STEADY LIKE WE'VE SEEN IN THE PAST YEARS ANYTHING MAJOR HAPPENING NEXT FISCAL YEAR ON A STEADY SAME THING. WE'LL SWITCH POTENTIALLY CHANGE OUT CO-SOURCING PARTNERS FOR THE NEXT COUPLE OF YEARS.
SO, WE HAVE CONTRACT RFPS OUT FOR NEW CONTRACTS FOR OUR SOURCING PARTNERS.
SO BESIDES THAT, THAT'S THE ONLY BIG CHANGE. WE STILL BELIEVE THAT 20 AUDIT REPORTS IS ABOUT WHAT COUNCIL CAN ABSORB AND WHICH WE HAVE TOO MUCH. WE COULD DO 500 REPORTS, BUT I THINK EVERYBODY WOULD BE OVERWHELMED ON THE CITY MANAGER AND NOBODY'S GETTING ANY WORK DONE BECAUSE EVERYBODY'S RESPONDING TO THE AUDITOR.
SO 20 SEEMS TO BE A PRETTY GOOD SWEET SPOT FOR ABSORPTION BY COUNCIL MEMBERS AND THE GOVERNANCE PROCESS, I THINK, AND AS WELL AS LIKE SLOW AND STEADY IS NOT A BAD THING WHEN WE HAVE SO MUCH ELSE GOING ON IN THE CITY AND JUST ABOUT EVERY OTHER DEPARTMENT THAT'S CHANGING AND SO DYNAMIC. ANYBODY ELSE? ALL RIGHT. WE HAVE A MOTION AND A SECOND.
ALL THOSE IN FAVOR SAY AYE. AYE. ANY OPPOSED? MOTION CARRIES. THANK YOU. NEXT, WE HAVE THE ATMOS DALLAS ANNUAL RATE REVIEW FILING FOR 2025.
I SEE MY FRIEND SUSAN HARRIS BACK THERE. HELLO.
WHO'S GOING TO BE JOINING US UP FRONT TODAY? I MEAN, I'M A LITTLE BIT BLINDED RIGHT NOW.
I'M NOT SURE WHAT'S HAPPENING. I DON'T KNOW IF MY COLLEAGUES CAN SEE OUR FRIEND MR. FEHRENBACH HERE. IT'S ONE WAY TO MAKE ATMOS RATE REVIEW FILING.
INTERESTING. CHAIR WEST, WHEN I FIRST SAW HIM WALK IN THE ROOM, I THOUGHT IT WAS YOU.
[00:30:01]
I DON'T THINK I COULD PULL THAT OFF. I DON'T KNOW.I THINK YOU ACTUALLY COULD. WELL, WELCOME. I'M GOING TO JUST LET YOU TAKE IT AWAY.
THANK YOU. CHAIRMAN. I'LL TRY AND BE RESPECTFUL OF TIME HERE, BUT IT IS RATHER IMPORTANT, SO I'M GLAD I COULD BRIGHTEN UP THE BRIEFING A BIT ANYWAY.
I'LL PROVIDE A SUMMARY OF LAST YEAR'S CASE FOR JUST TO REFRESH YOUR MEMORY.
DISCUSS THE CURRENT FILING. REVIEW THE PROPOSED SETTLEMENT AGREEMENT.
THE COUNCIL'S OPTIONS PROVIDE THE CITY MANAGER'S RECOMMENDATION AND THE NEXT STEPS.
THE 2024 FILING ATMOS FILED THE CASE ON JANUARY 12TH 24.
THEY WERE REQUESTING AN ANNUAL INCREASE OF $47.9 MILLION FROM RESIDENTS WITHIN THE CITY OF DALLAS.
THE AVERAGE RESIDENTIAL BILL WOULD HAVE INCREASED BY 1372 A MONTH, OR ALMOST 15%.
AVERAGE COMMERCIAL BILL WOULD HAVE INCREASED BY LIKE 52, 63 PER MONTH OR A LITTLE OVER 10%.
AND THE RATES WERE SUPPOSED TO GO INTO EFFECT JUNE 1ST.
THE CITY WAS ABLE TO NEGOTIATE A SETTLEMENT OF THAT CASE AND ADOPTED AN ORDINANCE ON MAY 22ND.
SETTING RATES PURSUANT TO THE SETTLEMENT ATMOS' INCREASE WAS ONLY 45.1 MILLION ANNUALLY, AND THE RATES DID NOT GO INTO EFFECT UNTIL SEPTEMBER 1ST, SO THERE WAS A THREE MONTH DELAY. THE AVERAGE RESIDENTIAL BILL INCREASED BY 1369 PER MONTH, OR 14.94%, AND THE AVERAGE COMMERCIAL BILL INCREASED BY 4136 PER MONTH, OR AN INCREASE OF 8.06%.
NOW THEN, MOVING ON TO THE 2025 DARR FILING. ATMOS FILED THIS CASE ON JANUARY 15TH OF THIS YEAR.
THE CITY HAS 135 DAYS TO REVIEW THE REQUESTED RATES, AND OUR DEADLINE TO TAKE ACTION IS MAY 30TH.
ATMOS IS REQUESTING AN INCREASE OF $31.4 MILLION ANNUALLY FROM WITHIN THE CITY OF DALLAS.
THE AVERAGE COMMERCIAL BILL WOULD INCREASE BY ABOUT $21.72 PER MONTH, OR A LITTLE OVER 4.38%.
WITH GAS COST REQUESTED, RATES BECOME EFFECTIVE JUNE 1ST.
AND ALTHOUGH ATMOS HAS HAD SOME INCREASES IN OPERATING EXPENSE, THE MAIN DRIVING FACTOR IN THIS CASE IS THEIR INVESTMENT IN NEW PLANT, WHICH ATMOS HAS IDENTIFIED NEARLY ALL OF IT TO BE SAFETY RELATED.
IN THE PAST YEAR, ATMOS SPENT OVER $217 MILLION IN NEW CAPITAL INVESTMENT.
THEY REPLACED 63 MILES OF PIPE WITHIN THE CITY OF DALLAS.
YOU'VE PROBABLY NOTICED IN ALL OF YOUR DISTRICTS TEARING UP STREETS.
THEY'VE ALSO REPLACED 3398 STEEL SERVICE LINES WITHIN THE CITY OF DALLAS.
THE CITY RETAINED GARRETT GROUP TO HELP US REVIEW THIS CASE.
THEY HAVE EXPERTISE IN GAS FILINGS, AND THEY'VE WORKED WITH THE CITY BEFORE.
AFTER REVIEWING THE FILING AND SUPPLEMENTAL INFORMATION, GARRETT PROVIDED A DRAFT REPORT IDENTIFYING SEVERAL ISSUES AND ADJUSTMENTS TO THE FILING, TOTALING ABOUT $7 MILLION. WE SHARED THE REPORT WITH ATMOS, AND CITY STAFF, ASSISTED BY GARRETT AND OUTSIDE COUNSEL, MET NUMEROUS TIMES WITH ATMOS AND WERE ABLE TO NEGOTIATE A SETTLEMENT.
WE REACHED THAT SETTLEMENT AGREEMENT ON MAY 7TH.
THAT'S COMPARED TO THE 31.4 THEY ASKED FOR. INITIALLY, THE RATES WILL BECOME EFFECTIVE JUNE 1ST.
THE AVERAGE RESIDENTIAL BILL WILL INCREASE, BUT IT'S 7.83 PER MONTH, WHICH IS 7.93%.
THE AVERAGE COMMERCIAL BILL WILL GO UP BY ABOUT $12 PER MONTH, WHICH IS AN INCREASE OF 2.46%.
AND ATMOS WILL REIMBURSE THE CITY'S RATE CASE EXPENSES AND THAT AMOUNT.
THOSE FUNDS WILL NOT BE PASSED ON TO CONSUMERS.
THE COUNCIL CAN ALSO SET RATES AT SOME AMOUNT LESS THAN THE AGREED TO SETTLEMENT.
HOWEVER, ATMOS WOULD HAVE THE RIGHT TO APPEAL THAT DECISION TO THE RAILROAD COMMISSION OF TEXAS AND IF THEY APPEALED THAT DECISION, THEY COULD IMPLEMENT THE FULL AMOUNT OF THE REQUEST, THE $31.4 MILLION SUBJECT TO REFUND.
[00:35:06]
BUT AGAIN, ATMOS COULD APPEAL THAT TO THE RAILROAD COMMISSION AND IMPLEMENT THE FULL REQUEST WHILE THE APPEAL IS PENDING.THE CITY MANAGER'S RECOMMENDATION IS TO ADOPT THE PROPOSED SETTLEMENT OPTION NUMBER ONE.
IT SAVES RESIDENTS $3.46 MILLION ANNUALLY IN GAS RATES.
OUR RATE CASE EXPENSES ARE REIMBURSED. THE RATES BECOME EFFECTIVE JUNE 1ST.
IT AVOIDS THE UNCERTAINTY OF LITIGATING THIS CASE ON APPEAL WITH THE RAILROAD COMMISSION.
I BELIEVE THAT'S ITEM TWO ON THE AGENDA. AND OUR DEADLINE TO SET RATES IS MAY 30TH.
AND I WOULD BE HAPPY TO TAKE ANY QUESTIONS YOU MIGHT HAVE.
ALL RIGHT. WE DO HAVE A MOTION ON THIS ONE AS WELL.
AND IF WE GET A SECOND, WE CAN START THE DISCUSSION.
CHAIR MORENO. OH YES. JUST. NO.
I MOVE TO ADOPT THE PROPOSED SETTLEMENT AGREEMENT AS NEGOTIATED BY STAFF.
SECOND. ALL RIGHT. THE MOTION A SECOND DISCUSSION.
CHAIR. THANK YOU. SO QUESTION ON IF WE DON'T IF WE WERE TO NOT APPROVE THE MOTION THAT'S BEFORE US AND THE RATE WERE TO STAY THE SAME, IS ATMOS STILL OBLIGATED TO DO THE NECESSARY UPGRADES AND REPAIRS TO THE GAS LINES? ATMOS IS REQUIRED TO MAINTAIN A SAFE SYSTEM. SO YES, THEY WILL HAVE TO DO SOME UPGRADES.
WOULD THEY CONTINUE SPENDING AT THE CURRENT RATE OF CAPITAL INVESTMENT? THAT'S A QUESTION THAT ONLY THEY COULD ANSWER.
THERE ARE REPRESENTATIVES FROM ATMOSPHERE. BUT EVEN IF WE DENIED RATES, THEY WOULD STILL HAVE TO MAINTAIN A SAFE SYSTEM, REPLACE THOSE LINES THAT ARE STATISTICALLY LIKELY TO CAUSE PROBLEMS IN THE NEAR FUTURE.
YEAH, AND IF ATMOS COULD COME UP AND ANSWER THAT, AND TO GO ALONG WITH THAT QUESTION IS WHAT SORT OF COORDINATION IS DONE WITH TRANSPORTATION AND PUBLIC WORKS TO STOP THE. LACK OF COORDINATION WITH TEARING UP OUR STREETS THAT HAVE JUST BEEN REPAVED AND SIX MONTHS IN, THREE MONTHS LATER, THERE'S CUTOUTS BECAUSE OF THESE REPAIRS.
SO SOMEONE FROM ATMOS. YES. GOOD AFTERNOON, COUNCIL MEMBERS.
TO ANSWER THE FIRST QUESTION. ONE SECOND. SIR, CAN YOU EXPLAIN WHO YOU ARE AND WHO YOU'RE WITH? THANK YOU. SORRY ABOUT THAT. MY NAME IS CHRIS PHELAN. I'M WITH ATMOS ENERGY.
I AM THE VICE PRESIDENT OF RATES AND REGULATORY AFFAIRS. THANK YOU.
THANK YOU. SORRY ABOUT THAT. YES. TO ANSWER THE FIRST QUESTION AS WE CONTINUE TO INVEST IN THE SYSTEM, THERE ARE CERTAIN REGULATORY AND FEDERAL AND STATE REQUIREMENTS FOR US TO MAINTAIN THE LINES AND REPLACE AND MODERNIZE OUR SYSTEM.
SO WE WOULD CONTINUE TO OBVIOUSLY DO THAT. HOWEVER, THE RATE ACTIVITY THAT GOES ALONG WITH THAT HELPS, HELPS OR ENHANCES THAT AS WELL. SO, WE NEED TO HAVE IT'S A TWO-WAY THING.
BUT ALSO, WE NEED THE RATE ACTIVITY TO SORT OF OFFSET THAT BECAUSE WE SPENT THOSE FUNDS AND THEREFORE, WE NEED THOSE DOLLARS TO CONTINUE TO INVEST AT THAT AT THAT GENERAL CLIP THAT WE'VE BEEN INVESTING AT.
THANK YOU. AND THE FOLLOW UP TO THAT WAS WHAT THE COORDINATION TO PREVENT OUR NEW STREETS THAT ARE RECENTLY PAVED FROM BEING CUT OUT. YES, SIR. AND I HAVE ALLEN HAWKINS HERE THAT WOULD ALSO MAYBE ADDRESS THAT QUESTION.
ALL RIGHT. ALLEN HAWKINS, DIRECTOR OF OPERATIONS FOR DALLAS.
UNFORTUNATELY, SOMETIMES THE PROJECT ITSELF, YOU KNOW, CAN CREATE SOMETHING OR SOMETHING HAPPENS AFTER WE HAVE SEVERAL MEASURES IN PLACE THAT, YOU KNOW, IF WE'RE GOING INTO A NEW STREET, OF COURSE, WE'RE FOLLOWING ALL THE CITY GUIDELINES AND WE'RE DOING PANEL TO PANEL REPLACEMENTS. IF WE LEAVE PATCHES, IT'S USUALLY JUST TEMPORARY, AND WE USUALLY MARK THOSE WITH TEMPORARY PAVING REPAIRS AND THEN COME BACK AND REPLACE SEEM TO SEEM OR, YOU KNOW, IN SOME CASES WE EVEN DO MORE THAN WHAT WE, WHERE WE ACTUALLY INTERFERED AND MAKE SURE WE LEAVE IT JUST AS GOOD OR BETTER THAN IT WAS WHEN WE GOT THERE. AND, CHAIR, I KNOW WE'VE DISCUSSED I'M NOT SURE WHO FROM CITY MANAGEMENT IS HERE,
[00:40:07]
BUT HAVING A, A YEAR PERIOD WHERE FOLKS CAN'T COME IN AND DO CUTOUTS.AND IF YOU ARE WITHIN A YEAR, IS THERE OPPORTUNITIES TO DO BORING UNDERGROUND INSTEAD OF GOING IN FROM THE SUBSURFACE? SO, ALL OF OUR, I'LL SAY ALL, MOST PROBABLY 95% OF OUR PIPE ARE PUT IN BY BORING.
YOU KNOW, WE DO HAVE TO DIG UP WHERE THE LEAK IS AND REPAIR THAT RIGHT THERE.
AND THAT'S TYPICALLY WHERE A LOT OF THE STREET REPAIRS COME IN. JUST BECAUSE, YOU KNOW, AT ONE TIME IT MAY HAVE BEEN BEHIND THE CURB AND IN THE GRASS AND WITH STREET WIDENING AND DIFFERENT THINGS, YOU KNOW, IT'S NO LONGER IT'S OUT IN THE MIDDLE OF THE STREET, AND A LOT OF FOUR LANE ROADS AND TWO LANE ROADS AND LARGE DIAMETER PIPES.
SO WE TRY VERY HARD NOT TO MESS UP THE STREETS WHERE WE HAVE TO.
BUT THEN AGAIN, JUST TO MAINTAIN WHAT WE HAVE, SOMETIMES IT'S JUST UNAVOIDABLE.
SAYING NO. OKAY. I HAVE A QUESTION. CHAIRWOMAN.
GO AHEAD. SO, EVERY TIME WE DO THIS, WE GET THE WHOLE STORY ABOUT HOW MUCH IT COST TO REPLACE PIPES.
AND IT DOES. AND PIPES ARE EXPENSIVE, AND ALL THAT CONSTRUCTION IS EXPENSIVE.
AND WE NEED YOU TO DO IT BECAUSE THERE'S SOME REAL SAFETY CONCERNS.
BUT I'M WONDERING ABOUT OTHER PARTS OF YOUR BUDGET THAT PERHAPS COULD BE EVALUATED.
SO YOU GUYS ARE CONSIDERED A GOOD CORPORATE SPONSOR FOR LOTS OF EVENTS IN THE COMMUNITY.
YOU BELONG TO A LOT OF CHAMBERS OF COMMERCE. ARE THERE PARTS OF THE BUDGET THAT COULD BE CONSIDERED FOR YOU ROLLING BACK A LITTLE BIT? BECAUSE REALLY, YOU'RE A GOOD CORPORATE CITIZEN BASED ON THE RATES EVERYBODY'S PAYING.
AND I'LL JUST SAY LAST YEAR THE AVERAGE RATE INCREASE WAS, WHAT, $13.69? YOU'RE ASKING NOW $13.72 THIS YEAR. I MEAN, THAT'S OVER $27 AND, YOU KNOW, 12 MONTHS. AND WHEN YOU START TALKING ABOUT THAT ON A MONTHLY BASIS FOR FOLKS, YOU'VE TAKEN SOMETHING THAT'S BECOME A VERY SMALL BILL.
GENERALLY, THE GAS BILL EVEN IN THE SUMMER, IT'S A SIGNIFICANT PART OF PEOPLE'S BUDGET NOW.
AND SO, I'M JUST WONDERING WHERE ELSE YOU'RE LOOKING AT TRIMMING YOUR BUDGET.
YES, MA'AM. AND WE DO TAKE PRIDE IN BEING AN EXCELLENT CORPORATE CITIZEN.
ALL THE EDUCATIONAL TYPE THINGS, THE WORK THAT WE DO WITH SCHOOLS AND SO FORTH.
ALL OF THOSE COSTS ARE WHAT WE CONSIDER BELOW THE LINE.
SO, THEY'RE NOT PART OF OUR RATE ACTIVITY OR RATE INCREASES.
WE DO ALSO TAKE PRIDE IN TRYING TO, TO MINIMIZE OUR INCREASES TO OPERATIONS AND MAINTENANCE EXPENSE.
SO WE HAVE WE DO HAVE ANNUAL BUDGETS WHERE WE LIMIT THOSE COSTS, BECAUSE WE DO REALIZE THAT THAT THOSE IMPACTS OR THOSE INCREASES DO HAVE IMPACTS ON OUR ON OUR CUSTOMERS AND YOUR CITIZENS. AND AS MR. FEHRENBACH POINTED OUT IN THE IN THE SLIDE PRESENTATION, THE MAJORITY OF THE INCREASE IS DRIVEN BY THE INVESTMENT THAT WE'RE MAKING.
SO WE ARE MAKING PROGRESS IN MODERNIZING THE SYSTEM, REPLACING THOSE LINES THAT NEED REPLACING, DOING THE WORK THAT MR. HAWKINS DESCRIBED AS WELL WITH, WITH REMEDIATING THE STREETS AND THE ALLEYS AND SO FORTH AFTER THAT WORK HAS BEEN DONE.
AGAIN, THERE'S THINGS AROUND LINE LOCATES, LEAK SURVEYS, THINGS THAT WE'RE REQUIRED TO DO.
THOSE TYPES OF COSTS ARE ALSO INCREASING. LABOR COSTS ARE INCREASING.
WELL, I KNOW YOU SAT THROUGH THE PRESENTATION WHERE WE JUST DISCUSSED RECOMMENDING TO OUR COLLEAGUES TO INCREASE THE SENIOR EXEMPTION FOR THEIR PROPERTY TAXES. BUT I HAVE TO TELL YOU THAT EVERYTHING'S GOING UP FOR PEOPLE, AND IT'S GOING UP SIGNIFICANTLY.
THERE'S LOW INCOME PROGRAMS THAT WE HAVE AND A LOT OF FOLKS.
[00:45:01]
AND I'LL SAY THIS WHEN YOU TALK TO OUR ELDERLY AND WHEN WE HAVE THESE CALLS, THEY, WE BRING UP THESE PROGRAMS. AND A LOT OF THEM ARE, I WOULD SAY, TOO PROUD TO PARTICIPATE, BUT WE TRY TO DO OUR BEST TO SAY, IF YOU NEED HELP, WE'RE HERE TO HELP. THERE'S FEDERAL DOLLARS ALSO AVAILABLE.THERE'S BUDGET BILLING. THERE'S DIFFERENT THINGS THAT WE CAN DO TO HELP CUSTOMERS. SO WE TRY TO DO OUR BEST TO WE UNDERSTAND THE BUDGET CONSTRAINTS, OBVIOUSLY. SO WE TRY TO DO OUR BEST TO MAKE SURE WE'RE WORKING WITH OUR CUSTOMERS.
THANK YOU. THANK YOU. CHAIRWOMAN. ALL RIGHT. I'VE GOT A COUPLE QUESTIONS.
IF YOU COULD JUST STICK AROUND FOR A SECOND. I'M NOT SURE WHO THIS IS FOR, BUT WHEN ATMOS OR AT&T OR SOMEBODY WANTS TO DIG INTO A CITY STREET AND CUT IT UP. WHO HAS TO GIVE YOU PERMISSION TO DO THAT? WHO'S THAT? YOU CAN'T JUST GO SHOW UP WITH A TRUCK AND START CUTTING.
RIGHT, RIGHT, RIGHT. THERE'S A PROCESS WE FOLLOW WHERE WE APPLY FOR A PERMIT THROUGH PUBLIC WORKS.
SO, WE APPLY FOR A PERMIT, AND THEN WE ALSO SUBMIT A TRAFFIC CONTROL PERMIT THAT WILL SHOW WHAT WE'RE GOING TO DO, WHERE WE'RE GOING TO BE DOING IT AND WHAT OUR ANTICIPATED COMPLETION DATE IS.
IS THERE SOMEONE. THANK YOU. I DON'T HAVE ANY MORE QUESTIONS FOR YOU GUYS.
IS THERE SOMEBODY FROM PUBLIC WORKS IN HERE RIGHT NOW? CHAIRMAN, I DO NOT SEE ANYONE FROM THAT DEPARTMENT IN THE IN THE ROOM.
YES, SIR. THAT IS CORRECT. THERE IS A PROCESS.
SO I GUESS THIS IS FOR THE CITY ATTORNEY'S OFFICE, ALONG WITH WHAT CHAIR MORENO WAS ASKING.
IF WE HAVE A BRAND NEW, BEAUTIFULLY LAID OUT STREET THAT TAXPAYERS PAID 3 OR $4 MILLION FOR, AND THERE'S PROPOSED WORK SUDDENLY COMING UP TWO MONTHS LATER, LIKE, IS THAT A PROBLEM? I HEAR ABOUT IT. I'M SURE MY COLLEAGUES HEAR ABOUT IT.
IS THERE A WAY WE CAN PUT A MORATORIUM IN PLACE AFTER A STREET IS POURED THAT YOU MUST WAIT A PERIOD OF TIME? AND I THINK THAT, IF NOTHING ELSE, WILL FORCE THE UTILITIES COMPANIES TO COME TOGETHER EARLIER AND START TALKING ABOUT OUR PROJECT PLAN FOR ALL THESE STREETS THAT WE'RE PAVING. DON KNIGHT, CITY ATTORNEY'S OFFICE.
WE CURRENTLY HAVE A RIGHT OF WAY ORDINANCE THAT KIND OF SETS THE RULES.
YOU HAVE A WHAT? I'M SORRY. RIGHT. RIGHT OF WAY MANAGEMENT.
RIGHT OF WAY MANAGEMENT. ORDINANCE. RIGHT. SETS THE RULES FOR YOU KNOW, WHEN YOU CAN CUT THE STREET AND THE RULES FOR RESTORATION AND THAT SORT OF THING. SO, I THINK THAT WAS THAT WOULD BE SOMETHING WE WOULD LOOK AT WITH THE AID OF THE PUBLIC WORKS DEPARTMENT AND TO KIND OF ENCOMPASS WHAT YOU WERE SUGGESTING. YOU MIGHT HAVE A SITUATION WHERE YOU WOULD SAY, WHEN THE CITY DOES A PROJECT TO REPAVE A STREET, WE NOTIFY ALL THE UTILITIES, AND WE TELL THEM IT'S NOW OR YEARS IN THE FUTURE.
IF YOU WANT TO DO CONSTRUCTION IN THIS AREA, YOU NEED TO DO IT NOW.
AND IF YOU FAIL TO DO SO, THEN YOU WILL NOT BE ABLE TO CUT THIS STREET FOR A CERTAIN PERIOD OF TIME.
NOW, YOU KNOW, YOU CAN IMAGINE THERE WILL BE PUSHBACK FROM UTILITIES ON THAT.
SO THAT'S WHAT I WOULD ENCOURAGE THE CITY TO DO IF WE WANTED TO PURSUE SOMETHING LIKE THAT.
SIT DOWN WITH THEM, WORK IT OUT SO WE CAN GET SOMETHING THAT'S AGREEABLE FOR EVERYBODY.
OKAY. AND I'M NOT TRYING TO REWRITE THE ORDINANCE NOW HERE AT GPFM, BUT THE.
I ASSUME THERE WOULD BE EXCEPTIONS IF THERE WAS A PIPE BURST OR SOMETHING. I MEAN, YOU'RE GOING TO HAVE TO CUT IN, BUT THE INTENT THAT I THINK MY COLLEAGUE AND I SHARE UP HERE, AND PROBABLY EVERYBODY ELSE ON COUNCIL, I WOULD ASSUME, IS AVOIDING UNNECESSARY CUTS THAT CAN WAIT A COUPLE OF YEARS AFTER BRAND NEW STREET IS PROPOSED. SO CAN YOU DO ME A FAVOR? SEND OUT THE RIGHT OF WAY MANAGEMENT ORDINANCE.
JUST SEND IT OUT SO EVERYBODY ON GFM HAS GOT A COPY OF IT.
AND THEN I ASSUME THAT WOULD GO TO TRANSPORTATION COMMITTEE.
JACK, IS THAT RIGHT? IF THERE WAS A DISCUSSION ON THAT ITEM.
YES, SIR. THAT WOULD BE THE APPROPRIATE VENUE.
OKAY. ANYBODY? I THINK I'VE GENERATED SOME MORE QUESTIONS.
I HAD MORENO FIRST. GO AHEAD. THANK YOU. QUESTION FOR ATMOS IS HOW DO WE FIND THE BALANCE OF THE RATE INCREASE FOR RESIDENTIAL VERSUS COMMERCIAL? YOU KNOW, OF COURSE, WE WANT TO REMAIN A BUSINESS FRIENDLY CITY.
[00:50:03]
YES. YES, SIR. THERE IS. IN FACT, CURRENTLY THE WAY IT'S SET UP VIA THE DARR TARIFF, THE DALLAS ANNUAL REVIEW TARIFF, THERE'S A CERTAIN PRESCRIBED ALLOCATIONS TO THE CUSTOMER CLASSES.BUT MR. FEHRENBACH AND I HAVE HAD, OVER THE LAST COUPLE OF YEARS, HAVE HAD DISCUSSIONS ON WHAT WE COULD DO TO MOVE COSTS AROUND THOSE, THOSE ALLOCATION PERCENTAGES ARE DRIVEN TYPICALLY BY THE CLASS OF CUSTOMERS THAT DRIVE THE COST.
THERE'S MORE METERS. THEY RECEIVE A LARGER PORTION OF THE INCREASE.
BUT CERTAINLY, THERE'S DISCUSSIONS THAT CAN BE HAD TO LOOK AT THOSE CLASS ALLOCATIONS AND MAYBE MOVE SOME, SOME COST PERCENTAGES TO THE OTHER CLASSES. BUT RIGHT NOW, WE'RE JUST CURRENTLY FOLLOWING THE PRESCRIPTION FROM OUR, FROM OUR LAST STATEMENT OF INTENT WITH THE CITY OF DALLAS.
THANK YOU. I SAW A HAND FROM CHAIR MENDELSOHN.
GO AHEAD. SO, I JUST WANT TO GO BACK TO THE CUTS.
DON, FOR THE ORDINANCE. ISN'T THERE SOMETHING THAT SAYS THAT IF YOU CUT INTO IT AND THE STREET WAS POURED WITHIN A CERTAIN AMOUNT OF TIME, THEY HAVE TO REPLACE THE WHOLE PANEL? YES, YES.
THAT'S RIGHT. IN THE CURRENT ORDINANCE, WE HAVE THAT PROVISION.
SO, THEY WOULD STILL BE ABLE TO CUT THE STREET, BUT THE RESTORATION REQUIREMENTS ARE CONSIDERABLY GREATER WHEN YOU'RE CUTTING A RELATIVELY NEW STREET. AND SO, IF THEY MAKE A CUT AND THEY'RE NOT HAVING TO REPLACE THE WHOLE PANEL AND THEY'RE JUST REPAIRING IT.
ISN'T THERE A CERTAIN AMOUNT OF TIME I DON'T I DON'T KNOW WHAT THE YEARS ARE LIKE.
FIVE YEARS WHERE IT HAS TO WITHSTAND FIVE YEARS WORTH OF TRAFFIC.
IS THAT CORRECT? PUBLIC WORKS WOULD BE ABLE TO GIVE YOU THOSE NUMBERS BETTER, BUT YEAH, I THINK THERE ARE THERE ARE MAINTENANCE REQUIREMENTS ON WHEN THOSE STREET CUTS ARE DONE, YOU KNOW, IF THE REPAIR OR THE RESTORATION, I BELIEVE THERE IS A REQUIREMENT THAT IT MUST, YOU KNOW, HOLD FOR A CERTAIN NUMBER OF YEARS.
OKAY. WELL, THIS WAS SOMETHING THAT WAS HAPPENING A LOT IN OUR DISTRICT, AND WE DISCOVERED THAT THE CITY WAS NOT GOING BACK AND INSPECTING THOSE. AND, YOU KNOW, THAT PREDATES THE CURRENT DIRECTOR.
AND SO I DO THINK THAT THAT INSPECTION. SO I DON'T KNOW IF IT'S FIVE YEARS, I THINK IT IS, BUT LET'S SAY IT IS FIVE YEARS. YOU KNOW, AT FOUR YEARS OR FOUR AND A HALF YEARS, WE NEED TO GO BACK OUT AND INSPECT IT.
AND IF IT'S NOT HOLDING, MAKE THEM COME BACK AND REDO IT.
AND I THINK THAT HAS NOT HAPPENED AT ALL. AND THEN THE REST OF THE STREET STARTS TO DETERIORATE, AND WE END UP WITH ANOTHER PROJECT ON THE NEXT BOND.
AND, YOU KNOW, A TERRIBLE STREET CONDITION. SO, THIS IS A REALLY IMPORTANT PART OF THE UTILITIES, BUT IT'S MAYBE NOT ABOUT THE RATE ANYMORE. SO ANYHOW, I JUST AM VERY CONCERNED FOR OUR RESIDENTS WHEN WE START TALKING ABOUT THESE KINDS OF ALMOST $14 INCREASES AS AN AVERAGE MONTHLY AMOUNT EVERY SINGLE YEAR.
AND I DON'T KNOW IF THEY CAN HANDLE IT. AND IT'S NOT JUST ONE UTILITY.
IT'S EVERYTHING. AND THIS IS WHAT'S PUSHING PEOPLE INTO SOME DESPERATE SITUATIONS.
THANK YOU. THANK YOU FOR THAT. ANYBODY ELSE? ALL RIGHT.
I REALLY THINK THAT THIS ORDINANCE REVIEW OF THE RIGHT OF WAY MANAGEMENT ORDINANCE, WHICH WE WENT DOWN THAT RABBIT TRAIL, COULD COULD BE A VERY INTERESTING DISCUSSION FOR A FUTURE COMMITTEE.
SO WITH THAT BEING SAID, WE HAVE A MOTION AND A SECOND, AND WE NEED A VOTE.
ALL THOSE IN FAVOR SAY AYE. AYE AYE. ANY OPPOSED? MOTION CARRIES. THANK YOU. AND THANK YOU FOR GRACING US WITH THAT BEAUTIFUL SUIT.
YEAH. ALL RIGHT. NEXT, WE'VE GOT ASSISTANT CITY MANAGER DONZELL GIBSON WITH OUR MONTHLY REVIEW OF CITY REAL ESTATE FOR DEVELOPMENT. REDEVELOPMENT. I WOULD JUST ASK, IN THE INTEREST OF JUST KIND OF BEING EFFICIENT TODAY, THAT I THINK EVERYBODY ON THIS COMMITTEE IS VERY FAMILIAR WITH THESE PROPERTIES.
DENZEL, IF YOU CAN JUST TOUCH ON THE NAME OF THEM AND WHAT THE UPDATE IS AS WE GO THROUGH THEM.
OKAY, ABSOLUTELY. THAT'D BE MY JOY. DENZEL GIBSON, CITY MANAGER'S OFFICE.
LET'S GO AHEAD AND GO TO SLIDE NUMBER FOUR ONE.
I'M GOING TO START WITH 1000 BELLEVUE ON SLIDE NUMBER FOUR.
[00:55:02]
WE BRIEFED BELLEVUE IN EXECUTIVE SESSION BACK ON MAY 14TH, AND THERE'S CURRENTLY AN ADDITIONAL FACILITY CONDITION ASSESSMENT THAT'S UNDERWAY BY CBRE.OUR RECOMMENDATIONS FROM STAFF IS TO TEST THE REAL ESTATE MARKET FOR THIS PARTICULAR ASSET.
IT'S ON YOUR 528 CITY COUNCIL AGENDA FOR CONSIDERATION TOMORROW.
AND WE LOOK FORWARD TO A FAVORABLE PASSAGE OF THAT PARTICULAR ITEM.
SLIDE NUMBER FIVE, PLEASE. 4150 INDEPENDENCE IS A LITTLE UNIQUE TO THE EXTENT THAT THE FIRE DEPARTMENT WANTED TO DO AN ASSESSMENT OF WHETHER OR NOT THIS WOULD BE A VIABLE OPTION FOR A FUTURE FIRE STATION.
THE MEMORANDUM THAT THEY SUBMITTED BASED ON SOME OF THEIR EARLY DATA ANALYSIS IS IN THE APPENDIX BUT FOR BREVITY OF THE THE COMMENTARY, AS THE CHAIR HAS REQUESTED, THE FIRE DEPARTMENT THOUGHT THIS WAS A VERY SUITABLE LOCATION FOR A FUTURE FIRE STATION.
NEXT SLIDE PLEASE. SLIDE NUMBER SIX 2929 SOUTH HAMPTON.
THEY DID A MARKET ANALYSIS THAT WAS SHARED WITH THIS COMMITTEE JUST LAST MONTH, AND THEY'VE RECENTLY PROVIDED A COUPLE RECOMMENDATIONS THAT WE WANT TO SHARE WITH THE COMMITTEE TODAY. AND THEY RECOMMENDED THAT THESE RUN IN PARALLEL, MEANING THAT THEY WOULD BE WORKED SIMULTANEOUSLY BY CBRE IN AN EFFORT TO BRING THE COUNCIL THE MOST INFORMATION POSSIBLE IN AN EFFORT FOR THEM TO MAKE DECISIONS AND NEXT STEPS FOR THIS PROPERTY.
SO RECOMMENDATION NUMBER ONE WAS TO TEST THE MARKET TO DETERMINE WHAT THE FAIR MARKET VALUE WAS OF THE PROPERTY AND BRING THAT BACK TO CITY COUNCIL FOR YOU GUYS TO TAKE A LOOK AT IT AND TELL STAFF WHETHER OR NOT WHAT YOU THOUGHT WAS REASONABLE RELATED TO THOSE OFFERS, AND WHETHER COUNCIL WANTED TO TAKE ANY ACTION ON SAID OFFERS.
AND THE OTHER ONE WAS TO CONTINUE WHAT WE CONSIDER TO POTENTIALLY BE KIND OF A WRAP UP OF SOME OF THE PERMANENT SUPPORTIVE HOUSING WORK THAT HAD BEEN DONE AT THIS LOCATION PREVIOUSLY WHERE CBRE WANTED TO GO IN AND DO AN ANALYSIS SPECIFIC TO PERMANENT SUPPORTIVE HOUSING, WHAT THE COST FACTOR MIGHT BE IF THE CITY DECIDED TO USE THAT LOCATION FOR SUCH, WHETHER IT WAS SOME TYPE OF REHAB TO THE EXISTING BUILDING, OR IF THE CITY WOULD DEMO THE EXISTING STRUCTURE AND POTENTIALLY LOOK AT A REBUILD ON THE SAME SITE IN AN EFFORT TO COINCIDE WITH TESTING THE MARKET THE WAY OUR REAL ESTATE PROCESS WORKS HERE.
BEFORE WE CAN MARKET A BUILDING OR BEFORE WE CAN QUOTE UNQUOTE, TEST THE MARKET.
BUT IT REQUIRES A CITY COUNCIL ACTION TO FORMALLY DECLARE THE PROPERTY AS SURPLUS.
SLIDE SEVEN PLEASE. THIS PARTICULAR PIECE OF PROPERTY, 300 PLUS ACRES, IS OWNED BY DALLAS WATER UTILITIES. WE'VE TALKED ABOUT THIS PROPERTY SEVERAL TIMES BEFORE.
DALLAS WATER UTILITIES IS ACTUALLY WORKING THIS PARTICULAR ASSET.
THEY'RE LOOKING AT IT FROM A LOT OF DIFFERENT ANGLES.
AND THEY COULD POTENTIALLY BE A STRATEGIC PARTNER IN ANYTHING THAT WOULD HAPPEN ON THIS PARCEL.
AND SO DALLAS WATER UTILITIES HAS REACHED OUT TO THEM AND STARTED SOME INITIAL CONVERSATIONS ON WHAT A POTENTIAL PARTNERSHIP WOULD LOOK LIKE AND ANY COMMENTARY OR ANY NEXT STEPS AND FEEDBACK RELATIVE TO THIS PROPERTY.
NEXT SLIDE PLEASE. SLIDE EIGHT. WE TALKED ABOUT THIS PARTICULAR PIECE OF PROPERTY AS WELL.
IT'S GOING TO BE BROKERED AS A FOR AN OPTION TO SELL.
CITY COUNCIL TOOK ACTION ON THIS BACK IN APRIL 23RD AND REQUESTED THAT STAFF TAKE A TWO TIERED PROCESS ONE, SELL AS IS, AND THE SECOND WOULD BE SELL LAND ONLY, WHICH IN THIS PARTICULAR CASE WOULD MEAN REQUIRING DEMOLITION OF THE EXISTING STRUCTURE ON
[01:00:03]
THE PROPERTY. ALL RIGHT. GO TO SLIDE TEN, PLEASE, JUAN.THIS WAS BULLETIN TRUCK TERMINALS GOT A LOT OF ATTENTION RECENTLY.
WE BRIEFED COUNCIL BACK ON 514. WE'VE ENGAGED THE CITY ATTORNEY'S OFFICE ON SOME ADDITIONAL STEPS AND RECOMMENDATIONS ON WHAT BEST AND HIGHEST USE MIGHT BE FOR NEXT STEPS FOR THE TRUCK TERMINAL.
AND WE'RE LOOKING FORWARD TO COMING BACK TO CITY COUNCIL IN EXECUTIVE SESSION TO TALK ABOUT WHAT WE BELIEVE OR REACH TO BE SOME VIABLE OPTIONS THAT WE WOULD WANT THE CITY COUNCIL TO CONSIDER AS IT RELATES TO THE BULLINGTON TRUCK TERMINAL.
I'LL STOP THERE. THE REMAINDER ONE, YOU CAN GO TO THE QUESTIONS PORTION.
THANK YOU. READY FOR QUESTIONS, PETER AND I, I THINK WE'RE GOING TO HAVE SOME.
THANK YOU. I WILL START WITH MY BUDDY UP HERE AT THE HORSESHOE.
THIS IS WHERE THE TWO UP HERE WITH THE FLOODING TODAY.
MR. MORENO. THANK YOU. DONZELL. ON 1000 BELLEVUE.
CAN YOU REMIND ME OF THIS? PROPERTY HAS BEEN IDENTIFIED AS SURPLUS PROPERTY.
SO, ONE IS I THINK IT WOULD BE HELPFUL TO ADD THAT STATUS ON THE UPDATES SO THAT WE KNOW IF IT'S BEEN IDENTIFIED AS SURPLUS PROPERTY OR NOT. OKAY. AND HELP ME UNDERSTAND WHY WE HAVE TO YOU MENTIONED THIS EARLIER, BUT WHY WE HAVE TO IDENTIFY A PROPERTY AS SURPLUS PROPERTY, EVEN THOUGH WE DON'T HAVE AN INTENT TO SELL IF WE JUST WANT TO EXPLORE THE MARKET TODAY, AND I'LL ASK THE ATTORNEY'S OFFICE AND MAYBE ASHLEY TO HELP ME A LITTLE BIT.
THE WAY THE CODE AND THE WAY OUR PROTOCOL IS SET UP IS THAT WE MAKE A DETERMINATION BY A ROUTING STRUCTURE THAT WE HAVE TO MAKE SURE THAT THERE'S NOT ANOTHER DEPARTMENT OR THERE'S NOT ANOTHER POTENTIAL USE.
BEFORE THE CITY WOULD DECIDE TO LOOK AT POTENTIALLY DIVESTING OF THAT PIECE OF PROPERTY.
NOW, AS I HAVE SAID BEFORE, AND AS WE GET CONTINUED RECOMMENDATIONS AND FEEDBACK FROM CBRE, SOME OF THEIR INITIAL CONVERSATIONS HAVE BEEN THE CITY OF DALLAS.
WITH SUCH A LARGE PORTFOLIO OF REAL ESTATE, WHETHER OR NOT YOU ARE REALLY INTERESTED IN SELLING A PARTICULAR ASSET AT ANY GIVEN TIME, YOU SHOULD TEST THE MARKET. SO THEY'RE RECOMMENDING THAT DIFFERENT ENGAGEMENTS DEPENDING ON, YOU KNOW, THE TIMING OF THE REAL ESTATE MARKET TO COME IN AND TAKE SOME PORTION OF OUR INVENTORY AND JUST TEST THE MARKET.
NOW WE MAY COME BACK WITH SOME RECOMMENDATIONS, SOME CODE CHANGES THAT ALLOW US TO HAVE A TRACK THAT'S MORE DIRECTLY ASSOCIATED WITH THAT, THAT MAY OR MAY NOT RESULT IN A TRADITIONAL SALE.
AS THIS PROCESS HAS DONE IN THE PAST. SO, WE'RE TRYING TO, ABRIDGING OUR PROCESS IN AN EFFORT STILL TO ENGAGE COUNCIL, STILL BEING ABLE TO TEST THE MARKET, BELIEVING THAT ABSOLUTELY, THAT BEING COUNCIL'S DECISION ON WHETHER OR NOT WE GO AHEAD AND SELL THE PROPERTY OR NOT.
THANK YOU. AND THANK YOU FOR ADDING ZONING ON THESE UPDATES.
I THINK THESE PRESENTATIONS KEEP GETTING BETTER AND BETTER.
WHEN WE WHEN WE IF WE GO AHEAD AND IDENTIFY THIS PROPERTY OR ANY OTHER PROPERTY AS SURPLUS PROPERTY, WILL THE EVALUATION BE DONE OR ON THE CURRENT ZONING, OR WILL THERE ALSO BE AN OPPORTUNITY FOR IF THIS WAS X, Y AND Z ZONING, CAN YOU REPHRASE YOUR QUESTION? SO RIGHT NOW, FOR 1000 BELLEVUE, IT HAS A IT'S NOT WITHIN THE CBD, BUT IT STILL HAS QUITE A FEW ZONING OPPORTUNITIES WHEN WHETHER IT'S CBRE OR SOMEONE LIKE THEM DOES THE, WHEN THEY TEST THE MARKET, WILL THAT MARKET BE TESTED ON THE CURRENT ZONING OR WILL IT BE DONE ON FUTURE ZONING THAT THIS COUNCIL COULD POTENTIALLY APPROVE? I'LL LET PETER IF HE'S ON, LET HIM WEIGH IN AS WELL.
BUT I THINK THE BEST WAY TO ANSWER THAT QUESTION IS WHOEVER'S GOING TO BUY THE PROPERTY.
PART OF THEIR DUE DILIGENCE SHOULD BE WHAT'S THE ZONING? AS MUCH AS THEY'RE GOING TO ASK ABOUT ENVIRONMENTAL OR OTHER DUE DILIGENCE, THE CITY MAY HAVE DONE THAT,
[01:05:05]
THAT WE CAN PROVIDE THEM. THEY'RE GOING TO IDENTIFY THE ZONING.THEY'RE GOING TO HAVE SOME FORM OF A BUSINESS PLAN IN MIND OF WHAT THEY COULD LIKELY DO AT THIS LOCATION IF THEY WERE TO OWN THE ASSET OR PURCHASE THE ASSET FROM THE CITY IN AN EFFORT FOR THEM TO GAIN THE HIGHEST POTENTIAL RETURN.
SO PART OF THAT PROCESS AND THOUGHT INTO DUE DILIGENCE COULD INCLUDE A FUTURE ZONING CHANGE, WHICH WOULD BE REQUIRED TO COME BACK TO COUNCIL FOR APPROVAL.
PETER, ARE YOU THERE? YOU WANT TO YOU WANT TO TAKE THAT ON? CAN YOU HEAR ME? IS MY AUDIO COMING THROUGH OKAY? WE CAN HEAR YOU. GO AHEAD AND INTRODUCE YOURSELF. PETER.
HELLO. PETER JENSEN WITH CBRE PUBLIC INSTITUTIONS TEAM.
JUST TWO COMMENTS ON THAT. WE CANNOT LIST SOMETHING WITH A PROMISE OF FUTURE ZONING.
SO, ANY BUYER IS GOING TO HAVE TO DO THEIR OWN DUE DILIGENCE ON THE TIME FRAME IT WOULD TAKE, AND THE BUSINESS PLAN ASSOCIATED WITH THE CHANGE OF ZONING.
SO NOTHING THAT WE DO ON THE MARKET PARTICIPANT SIDE, WITH THE CITY BEING A MARKET PARTICIPANT HERE AS THE SELLER CAN INFLUENCE OR CHANGE THE CITY'S REGULATORY RESPONSIBILITIES AND OPPORTUNITIES TO INFLUENCE THE FUTURE ZONING.
SO WHAT WILL HAPPEN WITH BUYERS WHO ARE SINCERELY INTERESTED IN A ZONING CHANGE IS THAT THEY WILL BE REQUESTING A CONTRACT WITH A DUE DILIGENCE AND INSPECTION PERIOD. THAT'S LONG ENOUGH TO ALLOW THEM TO EXPLORE THAT WHILE FORMALLY UNDER CONTRACT, SO THEY CAN ALSO FORMALLY EXPLORE FINANCING OPPORTUNITIES AND A CAPITALIZATION STACK FOR THE EXISTING USE OR A CHANGE IN USE.
SO THAT'S HOW IT WILL IMPACT YOU AS A SELLER OF ASSETS.
BUT CERTAINLY, IF SOMETHING IS UP AS THE POTENTIAL FOR A CHANGE IN USE, YOU KNOW, FOR EXAMPLE, BELLEVUE YOU KNOW, CHANGING TO A HIGHER AND BETTER USE.
CERTAINLY, WE WILL PICK UP ON THAT AND SUGGEST THAT TO THE MARKET AS A POSSIBILITY.
WE JUST CANNOT GUARANTEE OR AUTHENTICATE THAT THAT WOULD EVENTUALLY BE APPROVED.
SO THAT'S JUST, IT JUST IMPACTS YOUR TIMING OF CONTRACTS AND THE T'S AND C'S, SO TO SPEAK, RELATED TO THE CONTRACT OFFER. THANK YOU. AND I UNDERSTAND WE CAN'T PROMISE A ZONING CHANGE.
TWO I THINK WE'RE, YOU KNOW, IF WE AS A BODY CAN IDENTIFY BEST IN HIGHER USES FOR PARTICULAR AREA.
IT MIGHT BE IN OUR INTEREST TO CHANGE THE ZONING PRIOR TO PUTTING SOMETHING ON THE MARKET TO GET A BIGGER RETURN ON OUR ON OUR PIECES OF PROPERTY. AND THE ONE THING THAT WE MIGHT WANT TO ADD AS OUR PARKING CHANGES I BELIEVE PD 317 HAS A REDUCTION IN THE IN THE PARKING CODE. SO THAT MIGHT AGAIN, I KNOW THAT A LOT OF THE DUE DILIGENCE IS UPON SOMEONE SEEKING THAT PROPERTY, BUT IF WE CAN PUT OUT AS MUCH INFORMATION AS POSSIBLE.
I THINK WE CAN GET A BIGGER INTEREST ON 4150 INDEPENDENCE.
YOU KNOW, I STILL KEEP GOING BACK TO I DON'T BELIEVE DFR INITIATED THE INTEREST IN THIS PROPERTY.
I THINK WE KIND OF WENT OUT AND SAID, WHO'S INTERESTED? OTHER CITY DEPARTMENTS WITH THIS PROPERTY. SO, I REALLY QUESTION WHETHER A CFR IS THE BEST USE THERE.
2929 HAMPTON CAN YOU GIVE AN UPDATE ON THIS ONE A LITTLE BIT DEEPER? YOU SAID THAT THE PROPERTY ON BELLEVUE IS GOING BEFORE COUNCIL.
WHAT'S THE TIMELINE FOR SOUTHAMPTON? SO TODAY, AS NOTED ON SLIDE SIX, THAT WOULD BE JUNE 11TH FOR COUNCIL CONSIDERATION. AND THAT WOULD BE TO TEST THE MARKET, MUCH LIKE AT BELLEVUE.
OKAY. YOU KNOW, THIS IS A PROPERTY THAT HAS BEEN GOING BACK AND FORTH FOR QUITE SOME WHILE.
AND SO, YOU KNOW, I DO WANT TO SEE WHAT THE REST OF THIS COUNCIL GIVING THEM AN OPPORTUNITY TO CHIME IN AND TO DECIDE HOW WE SHOULD MOVE FORWARD. BUT AGAIN, MY UNDERSTANDING IS US SAYING THIS IS SURPLUS PROPERTY DOES NOT LOCK US INTO A SALE OF THE PROPERTY OR IN ANY WAY, SHAPE OR FORM PREVENT US TO CONTINUING TO DISCUSS POSSIBLE CITY USES ON THE PROPERTY, IS THAT CORRECT? YES, SIR. I THINK WHAT I WANT TO MAKE CLEAR HERE, AND I MIGHT NEED SOME SUPPORT FROM ASHLEY OR THE ATTORNEY'S OFFICE, BUT I THINK WHEN WE WALK YOU THROUGH THESE NEXT STEPS WITH REAL ESTATE, WE'LL USE THE PROPER TERMINOLOGY ABOUT WHETHER OR NOT IT'S TO TEST THE MARKET, TO PROVIDE COUNCIL WITH SOME POTENTIAL INSIGHT TO THE VALUE OF THE PROPERTY.
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OR IT'S A FORMAL, TRADITIONAL STAFF RECOMMENDATION TO SELL THE PROPERTY AS IS, AND WE'LL BE MORE FORTHCOMING ABOUT.THOSE TWO TRACKS, BUT THEY'LL LOOK VERY SIMILAR BASED ON THE WAY THAT OUR COUNCIL AGENDA PROCESS WORKS TODAY, THE WAY OUR REAL ESTATE WORKS TODAY. THANK YOU.
I'LL END ON THIS ONE. ON PAGE SEVEN, THE DWU PURCHASED PROPERTY ON HUTCHINS.
DOES THAT MEAN THAT ANY IMPROVEMENTS THAT ARE NOT GOVERNMENT RELATED? IF WE WERE TO SELL THIS PROPERTY, ALL THOSE IMPROVEMENTS WOULD BE SUBJECT TO HUTCHINS'S PROPERTY TAXES.
SO, THE CITY OF DALLAS WOULD NOT BE RETAINING ANY PROPERTY TAXES FROM IMPROVEMENTS AT THE HUTCHINS.
YOU MAKE A VERY UNIQUE QUESTION. I THINK THE OPPORTUNITY FOR THE TERM I WAS USING PARTNERSHIP.
I'D LEAVE A QUESTION MARK THERE. I THINK THERE IS SOME FLEXIBILITY FOR THE CITY TO NEGOTIATE SOMETHING FAVORABLE THAT WOULD END UP BEING A WIN-WIN FOR THE CITY OF DALLAS AND THE CITY OF HUTCHINS. THAT COULD CONSIDER A NUMBER OF RANGE OF OPPORTUNITIES FOR FINANCIAL BENEFIT FOR BOTH ENTITIES.
THANK YOU. THANK YOU. CHAIR. THANK YOU FOR THAT.
I'M GOING TO GO ONLINE NEXT. I CAN'T I HAVE SOME PEOPLE ARE BLOCKED ON MINE.
LET'S SEE. RAISE YOUR HAND IF YOU GOT A QUESTION.
I SEE CHAIR MENDELSOHN NOW. GO AHEAD. PETER, YOU GOT YOUR HAND UP, TOO.
DO YOU HAVE. OKAY, WE'LL COME BACK TO YOU. YEAH.
OKAY. WELL, MINE ARE IN A DIFFERENT ORDER. I'M GOING TO START WITH HUTCHINS.
I'M NOT SURE WHAT PARTNERSHIP MEANS IN THIS, IN THIS SCENARIO.
I THINK PARTNERSHIPS ARE LOVELY, BUT THE GOAL HERE IS FOR US TO RAISE DOLLARS.
ARE YOU UNDERSTANDING IT TO BE THAT SAME GOAL.
THE SAME. I JUST DON'T WANT TO SPECULATE ON WHAT A POTENTIAL DEAL MIGHT COME BACK LOOKING LIKE, EXCLUDING JUST THE, JUST A NATURAL SALE OF THE PROPERTY, THAT THERE ARE A LOT OF OTHER POTENTIAL OPTIONS, THAT WE WOULD PROBABLY BETTER BE DISCUSSED IN A MORE OF A CLOSED ENVIRONMENT THAN HERE.
WELL, THAT'S FINE. I DO THINK THAT THERE NEEDS TO BE SOME CONSIDERATION THAT ONE TIME FUNDING IS ACTUALLY NECESSARY, GIVEN OUR CURRENT FISCAL CHALLENGES, BUT ONGOING REVENUE IS ALSO LOVELY.
SO I'LL LOOK FORWARD TO HEARING THAT INFORMATION.
FOR BELLEVUE. DID I SEE THIS PROPERTY ADVERTISED IN THE MORNING NEWS? NOT THAT I'M AWARE OF. NO, MA'AM. OKAY. SO ON YOUR SLIDE, I DON'T SEE THAT YOU'RE MENTIONING THAT THIS THE CURRENT USE IS THAT IT'S A DATA CENTER.
NO, MA'AM, WE DON'T HAVE THE CURRENT USE LABEL.
WELL, I WOULD THINK THAT SOMEBODY INTERESTED IN THE PROPERTY THAT WASN'T GOING TO DEMOLISH IT WOULD BE VERY INTERESTED IN THE LARGE POWER THAT'S AVAILABLE. WHEN WE'RE MARKETING THE BUILDING.
YES, MA'AM, I WOULD AGREE WITH YOU ON THAT. FOR THE PURPOSE OF THE PRESENTATION TO GPFM, IF YOU WOULD LIKE SOME ADDITIONAL INFORMATION RELATED TO ITS CURRENT USE, WE CAN ADD THAT TO THE TEMPLATE.
WELL, I JUST THINK THAT IT'S PART OF WHAT MAKES IT UNIQUE.
AND THEN THE LAST BIT IS, I DIDN'T BELIEVE WE WERE AT THE POINT OF WANTING TO CALL IT SURPLUS.
HOW DO WE KNOW THAT THE CITY HAD NO INTEREST IN USING THIS BUILDING? BE TACTFUL HOW I ANSWER THIS. I KNOW WE BRIEFED IN EXECUTIVE SESSION ON 514.
OKAY. SO MY NEXT ONE IS ABOUT THE FIRE STATION FOR INDEPENDENCE. THERE'S SOME LAND THAT WAS BEING CONSIDERED BY BFR FOR STATIONS IN SOUTHERN DALLAS.
WOULD THIS REPLACE THOSE? IT'S MY UNDERSTANDING FROM TALKING WITH CHIEF BALL.
THIS WOULD BE A FUTURE NEW FIRE STATION. IT WOULD NOT REPLACE ANY OF THE EXISTING STATIONS.
[01:15:01]
I'M SORRY NOT TO REPLACE AN EXISTING STATION TO REPLACE A PLANNED STATION.THE WAY IT WAS DESCRIBED TO ME. AND FORGIVE ME IF I USE THE WRONG NOMENCLATURE AS IT RELATES TO PLAN VERSUS REPLACING A FEW ANOTHER FIRE STATION AS A PART OF A PLAN. BUT IT'S MY UNDERSTANDING THAT THIS WAS NOT SOMETHING THAT THEY HAD ON THEIR BOARD, ANY PART OF THEIR FUTURE MASTER PLAN. THIS PARTICULAR LOCATION WAS NOT CONSIDERED.
AND SO THIS WOULD BE SOMETHING NEW ALTOGETHER.
THEY DIDN'T INDICATE THAT THEY HAD ANOTHER PLACE, THAT THERE WAS A HOLE FOR COVERAGE.
SO. DOESN'T IT SEEM ODD TO YOU THAT SUDDENLY THERE'S A WHOLE NEW FIRE STATION THAT'S NEEDED IN A PLACE WHEN WE ALREADY HAD A PLAN? UNLESS THIS IS REPLACING ONE OF THE FUTURE LOCATIONS.
PART OF OUR PROCESS THAT STAFF GOES THROUGH BEFORE WE DETERMINE THAT A PIECE OF PROPERTY WILL BE SURPLUS, BEFORE WE BRING IT TO COUNCIL, WITH THE INTENT TO POTENTIALLY DIVEST OF IT.
THERE IS A ROUTING PROCESS THAT GOES TO EACH AND EVERY DEPARTMENT, INCLUDING SOME OF OUR UTILITIES.
I BELIEVE DISD IS ALSO ONE OF THE PARTNERS THAT IS PROVIDED THAT LIST, AND WE DO THAT WITH THE HOPES THAT PEOPLE WILL GO BACK AND LOOK AT THEIR PLAN AND VET AND DETERMINE WHETHER OR NOT IT MAKES SENSE.
AND I BELIEVE FOR WHATEVER REASON, AND I DON'T UNDERSTAND THE STRATEGY BEHIND WHAT THE FIRE DEPARTMENT USES FOR THEIR ANALYSIS, BUT IT WAS FLAGGED ON THEIR PART TO SAY, WE NEED TO TAKE A CLOSER LOOK AT THIS PARTICULAR PIECE OF PROPERTY BEFORE THE CITY DIVESTS OF IT.
I THINK THERE'S WISDOM IN THAT. I THINK IT MAKES A LOT OF SENSE.
I'M NOT FAMILIAR WITH THEIR PREVIOUS PLANNED OR FUTURE FIRE STATIONS MODELING, BUT I KNOW WHEN WE WERE HAVING THE DISCUSSION ABOUT THIS, THEY THOUGHT IT WAS A VERY CREDIBLE LOCATION TO DO AN ANALYSIS, AND THE INFORMATION THAT THEY BROUGHT BACK BY MEMORANDUM SUGGESTED THAT IT MADE SENSE FOR THIS PARTICULAR AREA. IT'S UNFORTUNATE WE DON'T HAVE A MEMBER OF THE FIRE DEPARTMENT AVAILABLE FOR TODAY, BUT AT NEXT MEETING, WHICH IS JUST ACTUALLY A COUPLE WEEKS AWAY, WE COULD MAKE SURE THAT WE HAVE SOMEONE FROM THE FIRE DEPARTMENT HERE THAT COULD SPEAK TO 4150 INDEPENDENCE. MORE IN DEPTH. WELL, DON'T WORRY, WE'LL TALK ABOUT IT AT PUBLIC SAFETY.
ARE YOU AWARE OF THE CURRENT RESPONSE TIMES FOR DFR IN THE AREA? MR. MENDELSOHN? THE ONLY INFORMATION I HAVE IS IN THE APPENDIX.
IT WAS A MEMORANDUM SUPPLIED BY CHIEF ARTIST THAT SPOKE TO THE ANALYSIS, THE PROCESS THAT THEY USE TO ANALYZE THIS PIECE OF PROPERTY. AND IF I COINED THE PHRASE HERE, IT SAYS THAT THE TRAVEL TIMES IN THE AREA ARE 30S LONGER THAN THE CITY AVERAGE. AND THE LAST COMMENTARY SAYS, ISN'T THIS IS AN IDEAL LOCATION FOR A FUTURE FOR A NEW FIRE STATION? EXCUSE ME? NEW FIRE STATION. IT'S IN THE APPENDIX ONE.
CAN YOU GO TO THE APPENDIX? I THINK IT'D BE PAGE 27.
AND, DENZEL, ARE YOU AWARE OF THE ANNUAL OPERATIONAL COSTS FOR EACH FIRE STATION.
AND IS THERE AN ABILITY FOR THIS PROPERTY TO HAVE DIRECT ACCESS TO THE I-20 RAMP, OR DO THEY ALWAYS HAVE TO GO TO CAMP WISDOM? I'D HAVE TO FORWARD THAT QUESTION TO THE FIRE DEPARTMENT.
I'M NOT SURE. OKAY. WELL, I'M JUST GOING TO SAY I HEARD SOME A LITTLE TOUCH OF THIS FROM ANOTHER COUNCIL MEMBER, BUT I JUST WONDER IF WE ARE UNWILLING TO SAY PUBLICLY THAT WE BOUGHT ANOTHER BAD PROPERTY AND WE'RE SOMEHOW MAKING THIS INTO A FIRE STATION, AND THAT'S EVEN MORE EXPENSIVE THAN OUR MISTAKE.
[01:20:01]
AND I AM UNAWARE OF THE FUTURE FIRE STATION PLAN NEEDING SOMETHING IN THIS LOCATION THAT HAS NEVER BEEN SAID TO ME. AND I ASKED A LOT OF QUESTIONS ABOUT THE LAST PLAN.SO THIS THIS SEEMS LIKE A WAY TO COVER A BAD DECISION ABOUT THE PURCHASE.
THANK YOU. ALL RIGHT. THANK YOU FOR THAT. I'M GOING TO GO TO VICE CHAIR BLACKMON.
I'LL CALL ON YOU WHEN I'M AFTER MISS BLACKMON.
I MEAN, I GUESS I'M LOOKING AT ON ANOTHER ONE SO I CAN BARELY READ IT.
AND SO, MY QUESTION IS, YEAH, I'M KIND OF GOING WITH, ARE WE TRYING TO CREATE A LEMONADE HERE? BECAUSE I'M NOT I'VE NEVER HEARD THAT. OH MY GOSH, THIS AREA NEEDS ANOTHER FIRE STATION.
BUT YET WE'RE LIKE, LET'S PUT A FIRE STATION OR LET'S ANALYZE IT.
SO MY QUESTION ON THE 32ND, IF THIS IS 30S LESS, IS THIS THE WORST TIME IN THE WHOLE CITY? IN OTHER WORDS, IS THERE ANOTHER AREA THAT'S LIKE THREE MINUTES? MRS. BLACKMON AN EXCELLENT QUESTION. I DON'T I DON'T HAVE THAT TYPE OF DATA OR FEEDBACK.
AS I MENTIONED TO MISS MENDELSOHN EARLIER, WE COULD HAVE THE FIRE DEPARTMENT AVAILABLE FOR THE NEXT.
I WAS SUPPOSED TO GO TO PUBLIC SAFETY, AND I'M NOT ON PUBLIC SAFETY, SO I GUESS I'LL BE GOING TO ANOTHER MEETING BECAUSE, I MEAN, I THINK WE'VE ASKED THESE QUESTIONS BEFORE IS DON'T JUST SAY, HEY, WE'RE GOING TO START OR SOMEBODY HAS, BECAUSE THIS SEEMS LIKE DEJA VU, BUT IT'S LIKE SOMEBODY HAS SAID, WHY ARE WE PUTTING A FIRE STATION HERE? GIVE ME MORE INFORMATION. AND THEN IT KEEPS POPPING UP AND I'M LIKE, WE NEED MORE INFORMATION THAN, HEY, WE SHOPPED IT AROUND AND SOMEBODY SAYS WE CAN USE IT HERE.
SO, IF IT NEEDS TO BE A STATION, THEN GIVE ME MORE INFORMATION THAN WE'RE GOING TO, I MEAN, THAN WHAT'S LISTED HERE. AND THEN BUT THE THING ABOUT IT IS, IT'S ALREADY GOT THE ZONING THAT IT WOULD NEED TO START BUILDING SOMETHING THAT COULD BE REALLY KIND OF COOL IN THE AREA.
ALL VALID POINTS. I THINK THE BEST RESPONSE THAT I COULD GIVE YOU IS THE FIRE DEPARTMENT, IF INTERESTED IN THIS PIECE OF PROPERTY, STILL HAS A LOT OF WORK TO DO, INCLUDING A FUNDING PLAN.
A PART OF THEIR STRATEGIC PLAN AS FAR AS FUTURE FIRE STATION.
A LOT OF ADDITIONAL WORK THAT STILL NEEDS TO BE DONE THAT AT SOME POINT AS WE PLAY THIS OUT FURTHER, IT COULD BE DECIDED THAT THE HIGHEST, BEST USE FOR NEXT STEPS FOR THIS PIECE OF PROPERTY IS NOT A FIRE STATION.
THIS IS JUST A PART OF STAFF'S DUE DILIGENCE IN SAYING WE DON'T WANT TO MISS AN OPPORTUNITY TO FIRE DEPARTMENT FLAGGED IT AS SOMETHING FOR US TO LOOK AT. IT'S WHAT WE SHOULD BE DOING. ACTUALLY, I'M PROUD OF THE PROCESS THAT WE USE THAT WOULD CATCH SOMETHING LIKE THIS.
WHETHER OR NOT IT TURNS INTO A FUTURE FIRE STATION OR NOT IS STILL IN QUESTION.
BUT WE'RE PROVIDING YOU WITH THE INFORMATION.
OKAY. HOW LONG IS THIS PROCESS GOING TO TAKE? THAT'S A GOOD I DON'T KNOW THAT I HAVE THAT PARTICULAR ANSWER.
I REALLY DON'T HAVE ANYBODY IN HERE TO TALK ABOUT THIS.
OKAY. NO, MA'AM. THAT'S. I'M SORRY. I'M AT A DISADVANTAGE.
YES, I'M AT A DISADVANTAGE TO HAVE TO GO ON BREAK, AND WE'RE ABOUT TO HAVE NEW COMMITTEES, AND IT COULD MOVE US INTO THE FALL. AND THE THING IS, I MEAN, WE COULD SELL IT AND PUT IT ON AND HAVE $5 MILLION, HOPEFULLY TO RECOUP THE AMOUNT THAT WE SPENT ON IT.
SO, WE'RE JUST MISSING A WINDOW HERE. AND ANYWAY, CAN WE BRING IT TO ONE COMMITTEE? PUBLIC SAFETY OR BACK TO THIS ONE AND GET SOME KIND OF CLARITY BY THE END OF JUNE? I CAN CHIME IN ON THAT. LIKE WE HAVE A VICE CHAIR.
WE, I BELIEVE, HAVE ONE MORE MEETING SCHEDULED FOR JUNE FOR US.
I DON'T HAVE MY CALENDAR IN FRONT OF ME, BUT I'M HAPPY TO I'M HAPPY TO BRING THIS BACK AND MAKE THIS A HIGHLIGHT, BECAUSE MOST OF MY QUESTIONS ARE ON THIS PROPERTY AS WELL.
[01:25:01]
NOT THAT I'M AGAINST IT, BUT YOU KNOW, YOU MADE THE PITCH, SO SELL IT TO US.AND I'M NOT GETTING SOLD ON 30S WHERE I'VE HEARD MRS. MENDELSOHN SAYS UP IN HER PART, SHE'S GOT SOME MAJOR TIME LAGGING.
I DON'T KNOW IF THAT'S EVER BEEN RECTIFIED. SO, I'M JUST KIND OF CURIOUS ON WHAT IS THE WHOLE IS THE SYSTEM AND WHY IS IT 30S OR IS THERE ONE THAT MAYBE NEEDS DIFFERENTLY. THAT'S THREE MINUTES.
SO YES, I WOULD LIKE MORE INFORMATION ON THIS.
I JUST FEEL LIKE WE'RE MISSING SOME TIME. AND IT'S KIND OF FRUSTRATING BECAUSE I THINK WE'VE BEEN TALKING ABOUT THIS ONE A COUPLE OF TIMES AND IT'S BEEN LOST, SO I'LL LEAVE IT AT THAT. AND THANK YOU VERY MUCH.
THE REPORTS GET BETTER AND BETTER. YOU'RE DOING A GREAT JOB. I KNOW YOU'RE THE HITMAN UP THERE.
FOR ALL OF OUR FRUSTRATION WITH THE BEING HIT ERRORS OF THE PAST IN REAL ESTATE.
I WANT TO THANK YOU FOR INVITING PETER JANSEN.
I THINK HE'S BEEN A GOOD ADDITION. AND I'VE HAD AN OPPORTUNITY TO WORK TO TALK WITH BOTH OF YOU.
PETER, YOU'VE BEEN ON HOLD FOR A MINUTE, AND I THINK I'VE TAKEN ALL THE OXYGEN OUT OF THE ROOM.
YOU WANT TO SPEAK UP ON THIS ONE? YEAH. HAPPY TO DO SO.
SO, A FEW YEARS BACK, WE WON A CONTRACT WITH THE CITY TO SERVE AS AN ADVISOR ON CALL.
AND WE ARE ADVISING DANIEL AND ASHLEY AND JOHN AND THE TEAM ON BEST PRACTICES AND EXPLORING A NUMBER OF DIFFERENT SCOPES TO AID YOU ALL AT THIS CRITICAL JUNCTURE.
AND SO, MY ROLE SIMPLY RIGHT NOW IS AN ADVISOR ON CALL.
AND I'M HAPPY TO SHOW UP TO THESE MEETINGS OR HAVE A MEETING WITH ANY ONE OF YOU FOLKS ONE ON ONE.
BUT I JUST WANTED TO INTERJECT KIND OF TWO GUIDING PRINCIPLES THAT I WOULD SUGGEST LIKE FOR YOU.
ALL RIGHT. NOW, YOU KNOW HOW YOU GOT HERE AND THE RATIONALE INTO HOW YOU CAME INTO POSSESSION OF SOME OF THESE PROPERTIES? YOU KNOW, WE'RE LOOKING PAST THAT AND NOT REALLY SO CONCERNED WITH THAT.
WE'RE REALLY CONCERNED ABOUT HOW DOES THE CITY SHOW UP TO THE MARKET TODAY TO MATCH WHAT THE MARKET NEEDS TODAY? SO, FROM A BEST PRACTICES STANDPOINT, UNDERSTANDING WHAT YOU OWN, THE TECHNICAL DUE DILIGENCE THAT IS EXECUTING THE COST ESTIMATES, THE ANALYSIS OF ZONING AND REPURPOSING, THESE ARE VERY, VERY IMPORTANT.
WHETHER YOU END UP AGREEING TO A CONTRACT OR NOT.
SO I THINK WE'RE KIND OF WRITING SOME OF THE PROCESS SHIP, SO TO SPEAK AND ADVISE YOU ON THE BEST PRACTICES SO THAT YOU ALL CAN BE BEST POSITIONED AS A SERIOUS MARKET PARTICIPANT TODAY. WHEN YOU GO TO MARKET TO, TO TEST THIS SO AND THEN IN THE THEME OF KIND OF TESTING THE MARKET, YOU KNOW, IT'S A LITTLE BIT OF A CHICKEN AND EGG ROCK AND A HARD PLACE FOR YOU ALL.
BUT IT IS IMPORTANT TO DECLARE THE SURPLUS SO THAT WE CAN LIST THEM PROPERLY AND PUT THEM IN THE MARKET AND GET REAL BIDS, NOT JUST THEORETICAL. AND I THINK AS I'M LISTENING TO THE DISCUSSION THERE'S A TREMENDOUS AMOUNT OF UNCERTAINTY ABOUT WHAT ARE THE REAL REVENUE OPPORTUNITIES CONTRASTED WITH WHAT ARE THE REAL COST OBLIGATIONS OF HOLDING AND OR REPURPOSING? AND WE ARE TRYING TO NARROW THOSE INFORMATION GAPS QUITE RAPIDLY.
BUT THOSE THINGS TAKE TIME. AND IF WE PUT SOMETHING IN THE MARKET TOMORROW, WE WILL NOT HAVE REAL BIDS THAT THAT HAVE ENOUGH DEPTH TO THEM UNTIL END OF THE SUMMER, SEPTEMBER. AND THEN YOU'RE GOING TO HAVE A 3 TO 6 MONTH POTENTIAL CONTRACT PROCESS TO CLOSE SOMETHING.
SO, WE'RE KIND OF IN THE MINDSET RIGHT NOW. IT'S BETTER TO FORMALLY DECLARE THE SURPLUS, LIST THEM, COLLECT REAL BIDS AS WE COMPLETE SOME OF THIS OTHER CONCURRENT ANALYSIS SO THAT YOU ALL CAN BENCHMARK,
[01:30:02]
HEY, IT'S A $5 MILLION REVENUE OPPORTUNITY VERSUS A, YOU KNOW, $3 MILLION HOLD OPPORTUNITY, SO TO SPEAK. THAT'S WHAT WE'RE TRYING TO GET SO THAT WE CAN GET OUT OF THEORETICAL LAND AND INTO REAL DEALS.SO, I'LL STOP THERE. BUT THAT'S KIND OF THE THEME AND HOW WE'RE ADVISING YOU ALL RIGHT NOW.
NOW, I THINK THAT'S VERY HELPFUL. AND JUST APPRECIATE YOUR, YOUR GUIDANCE THERE.
AND I THINK THIS THIS WHOLE DISCUSSION CAME TO GFM A WHILE BACK BECAUSE OF JUST, YOU KNOW, THE CITY FEELING LIKE WE GET BURNED AND BURNED OVER AND OVER AGAIN BY REAL ESTATE MISTAKES OF THE PAST AND HAVING A STRATEGIC PLAN AND GETTING, YOU KNOW, HAVING STAFF WORK ALONGSIDE REAL ESTATE PROFESSIONALS IS REALLY WHAT SHOULD HAVE BEEN IN PLACE FOR DECADES.
AND IT'S I LOOK FORWARD TO WHEN IT FINALLY DOES FALL INTO PLACE.
ALONG THOSE LINES, SPEAKING OF PARTNERSHIPS, WHO ARE HELPING US, WHAT PROJECTS ARE THE EDC, THE ECONOMIC DEVELOPMENT CORPORATION CURRENTLY LOOKING AT? ARE THERE ANY PARCELS OF LAND THAT ARE INVOLVED IN? AT ONE TIME WE HAD AN ENGAGEMENT ABOUT THE CENTRAL SERVICE CENTER, RIGHT.
BUT THAT WAS PUT ON PAUSE WHILE WE BASED ON THE CITY MANAGER'S RECOMMENDATION OF COUNCIL, FOR US TO CONCENTRATE ALL OUR TIME AND ENERGY WITH CBRE ON THESE TOP FIVE PRIORITIES. AND SO THAT THAT MOVED DOWN.
AND SO IT'LL BE IN THE SECOND SERIES OF PROPERTIES THAT WE BEGIN TO WORK.
OR AT LEAST THAT'S WHAT MY UNDERSTANDING WAS.
SO, I'D LIKE TO SEE THAT CONTINUE. THE INDEPENDENCE PROPERTY.
MY COLLEAGUES ASKED SOME GREAT QUESTIONS ON THAT.
I LIKE WHAT VICE CHAIR BLACKMON SAID, LIKE, ARE WE MAKING TRYING TO MAKE LEMONADE OUT OF LEMONADES HERE OR LEMONADE OUT OF LEMONS HERE? AND I JUST FEEL LIKE IT'S THIS FIRE STATION OUT OF NOWHERE.
IS JUST TOO CONVENIENT. IT'S LIKE, ALL RIGHT, WE'LL FOCUS ON THIS, NOT ON THE REAL PROBLEM, WHICH IS THE FACT THAT THIS BUILDING MIGHT NOT HAVE BEEN A GOOD, GOOD PURCHASE FOR THE CITY.
SO IS THE FEEDBACK. CHAIR WEST, I LOVE WHERE YOU'RE GOING, BECAUSE A LOT OF THESE BRIEFINGS, IT'S IMPORTANT FOR US TO GET FEEDBACK SO THAT WE INSTEAD OF GOING LEFT, WE GO RIGHT.
BASED ON Y'ALL'S FEEDBACK. YOU'RE THE FINAL POLICY POLICYMAKERS HERE.
AND SO, WE LISTENED VERY INTENTLY. AND WHAT I'M HEARING IS IT SOUNDS AS IF THERE'S MORE OF A SENTIMENT TO OFFLOAD THIS PARTICULAR LOCATION THAN TO CONTINUE THIS ANALYSIS. IF THERE'S A NEED FOR A FIRE STATION OR A NEED FOR SOMETHING IN THIS LOCATION THAT'S IDENTIFIED AND PURSUANT TO CITY POLICY, THEN I THINK WE WOULD SUPPORT THAT. BUT I HADN'T HEARD ANYTHING ABOUT A NEED FOR A FIRE STATION.
AND STILL I HAVEN'T HEARD FROM THE CHIEF THAT WE NEED.
I'M JUST ECHOING WHAT MY COLLEAGUES ARE SAYING, TOO. OKAY. CHAIR MORENO BROUGHT UP SOME GREAT QUESTIONS ABOUT DO WE ZONE BEFORE? OKAY, SO WE CAN'T ZONE. WE CAN'T PROMISE ZONING.
BUT I ASSUME. AND THIS COULD BE FOR PETER OR FOR YOU WHERE YOU'RE CONSIDERING WHETHER WE MIGHT WANT TO ZONE A PROPERTY, CHANGE THE ZONING IN IT BEFORE WE PUT IT ON THE MARKET.
THAT'S COUNTER TO WHAT WE'VE OPERATED BUSINESS FOR, AT LEAST IN MY TIME IN THE CITY.
OR MAYBE THERE'S A HYBRID THAT MIGHT BE AVAILABLE THAT WE COULD BRING BACK TO COUNCIL AS A, AS A POLICY DECISION. NOW THAT WE'RE HEARING THAT AND THINGS THAT WE COULD POTENTIALLY USE, IF THERE ARE THINGS THAT THE LOCAL GOVERNMENT CODE OR THE STATE OF TEXAS LAW ALLOWS US SOME FLEXIBILITY, WE'LL BRING THAT BACK AND SHARE THAT WITH YOU.
AND YOU GUYS CAN BRING THAT BACK TO US AS A POLICY ISSUE.
AND THEN WE CAN WE CAN FORMALIZE IT AT THAT POINT.
BUT I THINK WE NEED SOME MORE DUE DILIGENCE ABOUT WHAT THAT WOULD EVEN LOOK LIKE.
MAYBE WE CAN BENCHMARK FROM OTHER CITIES IN THE STATE THAT POTENTIALLY MAY BE DOING THE SAME.
I'M NOT AS FAMILIAR WITH ANY WHO ARE DOING THAT, BUT WE COULD LOOK AT ANY OTHER BEST PRACTICES AND BRING THOSE BACK TO YOU FOR CONSIDERATION. I WOULD APPRECIATE YOU GUYS COMING BACK TO US.
I THINK ONE OF THE THINGS WE HEAR FROM REAL ESTATE DEVELOPERS IS THE MOST RISKY THING THEY DEAL WITH IN THEIR ENTIRE PROCESS IS MUNICIPAL ZONING APPLICATIONS AND THE UNCERTAINTY THAT COMES WITH THAT.
AND SO IF WE CAN ADDRESS THAT FOR THEM IN SOME CAPACITY, I THINK THAT WOULD BE WISE.
AND THEN I, I SEE PETER. PETER, DID YOU HAVE SOMETHING TO ADD?
[01:35:01]
YEAH, JUST REAL QUICK. CHAIR WISE, IT DEPENDS ON THE SITUATION.BUT I CAN SAY UNEQUIVOCALLY SOME MUNICIPALITIES ARE PURSUING REZONINGS WHERE IT ADDS MATERIAL MARKET VALUE TO THE DISPOSITION PROCESS, BUT IT TAKES A MATERIAL TIME AND CAPITAL INVESTMENT TO EFFECT THAT.
SO, YOU WILL HAVE TO INVEST POTENTIALLY YOU KNOW, DOLLARS, SIX FIGURE DOLLARS PER SITE TO AFFECT THE APPROPRIATE DUE DILIGENCE TO COME UP WITH THE FEASIBILITY ANALYSIS THAT GENERATES THE BUSINESS CASE TO MAKE IT WORTHWHILE BEFORE YOU WOULD HAVE STAFF GO THROUGH THAT PROCESS. SO, ON SIGNATURE PROJECTS LIKE THE CENTRAL SERVICE STATION THERE IN, IN THE DEEP ELLUM, THAT WOULD BE 100% RECOMMENDED TO PURSUE THAT.
THAT SAID, IT TAKES SO IT TAKES SO MUCH CAPITAL TO DO IT.
AND I DON'T THINK THERE'S A CLEAR POLICY DIRECTIVE IN PLACE AND PROCESS MANUAL IN PLACE TO DO THAT, BUT IT JUST DEPENDS ON THE SITE. BUT ABSOLUTELY, SOMETIMES IT CAN BE BEST PRACTICE.
OTHER TIMES IT CAN BE A COLOSSAL WASTE OF TIME AND MONEY.
ALL RIGHT. THANK YOU. GREAT RESPONSE. AND I WILL JUST SAY IN RESPONSE TO THAT AS WE DEVELOP A REAL ESTATE STRATEGIC PLAN THAT SUGGESTION ON HOW WE HANDLE PRE-LISTING ZONING.
OVERVIEW SHOULD BE BUILT INTO THAT PLAN. AND ADOPTING BEST PRACTICES.
AND THEN LAST THING THAT I'LL GO TO MISS WILLIS IS ON BIG.
I THINK IT'S THE ONE PROPERTY WE KEEP OVERLOOKING.
IT'S IN THE APPENDICES, I BELIEVE, AT THE VERY END.
I MEAN, IT IS 24 ACRES UNUSED RIGHT NOW, PLUS THE ENTIRE AUTO POUND, WHICH LOOKS LIKE IT'S 2 OR 3 TIMES THAT IN DEVELOPING AREA OF WEST DALLAS, RIGHT OFF THE INTERSTATE WITH VIEWS OF DOWNTOWN.
I DON'T KNOW IF DPD HAS A LONG TERM PLAN FOR IF WE WANT TO STAY IN THE AUTO BUSINESS.
BUT THAT ASIDE, THERE IS NOT A PIECE OF GROUND OTHER THAN THE CENTRAL SERVICE CENTER THAT HAS MORE OPPORTUNITY TO GENERATE TAX REVENUE FOR THE CITY, AND THAT'S GENERATING ZERO. SO WE WE NEED TO BE LOOKING AT THAT HARD FOR TO MEET SOME OF OUR REVENUE NEEDS IN THE CITY.
OKAY. UNDERSTOOD. I WILL GO TO CHAIRWOMAN WILLIS.
GO AHEAD. THANK YOU. SO LET ME ASK THAT WE GO TO SLIDE 17 ON THE PARK FOREST LIBRARY BECAUSE IT WAS LOOKING LIKE THIS IS A MASH UP OF THE TWO SITES.
BUT THEN WHEN WE'RE TALKING ABOUT THE NEW CONSTRUCTED LIBRARY IN THE 2024 BOND PACKAGE, IT SEEMS LIKE THE TEXT IS MORE ABOUT THAT. SO, MY UNDERSTANDING IS THAT FOR WHAT WE SEE IN THE IMAGE, WE ABSOLUTELY NEED TO EXPLORE, IF NO ONE, YOU KNOW, IT SHOULD GO TO SURPLUS.
AND IF NO ONE CAN USE IT BECAUSE IT'S ON A COMMERCIAL STRIP.
I HOPE IT HAS A HOUSING COMPONENT. NOT SURE WHAT ELSE WE WOULD WANT TO DO.
WE NEED TO DO OUR NEIGHBORHOOD ENGAGEMENT ON THIS, BUT I FEEL LIKE THESE ARE BEING COMBINED INTO ONE SLIDE WHEN THIS IS ACTUALLY TWO SEPARATE ISSUES. MISS WILLIS, THAT'S NOTED. AND WE CAN MAKE SURE THAT WHEN WE DESIGNATE ANY STAFF DIRECTION RELATED TO PARK FOREST LIBRARY WILL SPLIT THE TWO. OKAY. ALL RIGHT.
THAT SOUNDS GOOD. AND THEN GOING BACK OVER TO INDEPENDENCE, I SHARE THE CONCERNS.
BUT I DO AGREE THAT IT SHOULD MAKE MORE SENSE THAN JUST THAT.
AND THE CITY SHOULD BE EXAMINED, AND WE KNOW THAT IT HAS SOME TROUBLING PROPERTIES ON EITHER SIDE.
MAYBE THERE'S A BIGGER OPPORTUNITY TO JUST LIKE WE WANT TO DO WITH THE LIBRARIES IS HAVE THIS SHOULD IT BECOME A NEW FIRE STATION? IT BECOMES A FIRE STATION WITH SOME HOUSING COMPONENT, WHICH WE'VE HEARD FROM OUR FIREFIGHTERS THAT YOU KNOW, THEY WOULD LIKE TO HAVE AND NEED TO HAVE. SO I WOULD LEAVE YOU WITH THAT.
AFTER TOURING IT, I WILL SAY I WOULD NOT WANT TO INVEST ANY MORE MONEY IN IT.
I THINK THE ESTIMATE WAS 29 MILLION THAT WE HEARD AT HOUSING AND HOMELESSNESS.
BUT THEN I ALSO WANT TO GO TO HAMPTON, BECAUSE SOME OF THE DIFFERENT THINGS I'VE HEARD IN THIS DISCUSSION, IT LOOKS LIKE THAT SLIDE HAD A PARALLEL PATH WHERE VOTE ON IT TO SEND IT TO SURPLUS, BUT THEN
[01:40:07]
SIMULTANEOUSLY ENGAGE IN LOOKING AT IT FOR PSH.SO, ONE THING I WANT TO UNDERSTAND IS I'VE HEARD SOME DIFFERING STORIES ON WHAT IT TAKES TO QUALIFY TO BE PERMANENT, SUPPORTIVE HOUSING, AND THAT IT MIGHT ACTUALLY REQUIRE LESS WORK TO CONVERT THOSE ROOMS THAN HAD PREVIOUSLY BEEN THOUGHT.
SO, I WANT TO BE SURE WE REALLY UNDERSTAND THAT WE MAY BE PUSHING TOO FAR IN WHAT THE EXPENSE WOULD BE IN THAT REGARD, SO I WANT TO BE SURE WE UNDERSTAND THAT. I WANTED TO ASK MR. JANSEN BECAUSE I THINK WE BROUGHT THIS UP. LAST TIME IS WHEN YOU'RE LOOKING AT A PROPERTY AND CBRE IS EXAMINING IT, YOU ARE IN THAT SILO OF JUST THE PROPERTY AND THE MARKETPLACE.
IS THAT ACCURATE? THAT'S CORRECT. YEAH. BECAUSE I'VE SEEN ON YOUR WEBSITE, I MEAN, LIKE MANY FIRMS DO, YOU ALSO LOOK AT A MARKET, A CITY, YOU MIGHT LOOK AT PORTLAND AND SAY, OH MY GOSH, YOU KNOW, HOW IS THE EFFECT OF THEIR HOMELESS POPULATION? WHAT KIND OF IMPACT DOES THAT HAVE ON OUR REAL ESTATE DOWNTOWN AND AROUND OUR CITY ABOUT THE LIVABILITY OF THE CITY? AND SO, YOU KNOW, WE'RE COMING FRESH OFF OF THE HOUSING FORWARD REPORT.
WE DIDN'T HAVE IT IN OUR MEETING THIS MORNING, BUT WE DISCUSSED IT.
THIS PRESENTATION WAS POSTED. I MEAN, WE STILL HAVE A HIGH UNSHELTERED POPULATION.
WE ACTUALLY HAVE A HIGH SHELTERED AND UNSHELTERED POPULATION OF ABOUT 3500 PEOPLE.
SO WHEN WE TALK ABOUT MOVING THIS PROPERTY INTO SURPLUS, I DON'T KNOW THAT IT PASSES THE TEST OF NOBODY NEEDS IT OR WE DON'T NEED THIS PROPERTY. MR. GIBSON, CAN YOU SHARE MORE ABOUT WHAT THAT WHAT THAT CHECKLIST IS LIKE TO DETERMINE WHETHER THE CITY NEEDS THIS OR DOESN'T NEED IT? SO IN A NUTSHELL, AND I WAS TRYING TO DEPICT THIS A LITTLE BIT EARLIER, I THINK THE INTENT WAS TO PROVIDE CITY COUNCIL WITH VALUABLE INFORMATION TO MAKE DECISIONS.
AND ONE OF THOSE WOULD BE WHAT'S THE MARKET VALUE OF THE PROPERTY? SO I THINK IT'S JUST PART OF OUR ONGOING DUE DILIGENCE AS WE CONTINUE TO BRING YOU GUYS INFORMATION.
AND THEN YOU GUYS ENGAGE US ABOUT DIFFERENT PATHS THAT WE SHOULD LOOK AT.
WE'LL TAKE SOME RECOMMENDATIONS AND FEEDBACK THAT COME FROM CBRE BASED ON THESE TWO PARALLEL TRACKS THAT WE'RE TALKING ABOUT RUNNING, AND THEN WE'LL BE READY FOR A MUCH DEEPER CONVERSATION ABOUT WHAT'S THE NEXT BEST STEP ONCE WE HAVE BOTH THESE PARALLEL ANALYSIS TOGETHER.
PETER, IF YOU SEE A DIFFERENT OH, I'M SORRY, GO AHEAD.
OH YEAH. LET'S SAY WE VOTE AND WE MAKE IT SURPLUS AND THEN WE ULTIMATELY DECIDE.
TURNS OUT WE'VE STILL GOT A PRETTY SIGNIFICANT PROBLEM AROUND HOMELESSNESS. AND WE EITHER NEED TO CONVERT THIS TO PSH OR PURSUE ANOTHER USE THAT'S NOT LISTED THERE, WHICH IS JUST MORE OF A TEMPORARY HOUSING TYPE OF OPTION TO PREPARE PEOPLE TO MOVE INTO HOUSING.
PER THE SLIDE, WE REVIEWED EARLIER ON OHS OR IN THE DAY ON THEIR BUDGET.
I'M ON THEIR BUDGET PREVIEW ON PREPARING AND HELPING PEOPLE BE READY FOR HOUSING.
SO MY QUESTION IS, IF WE DECLARE IT SURPLUS WITH A VOTE, HOW DO YOU RETRIEVE IT BACK IF YOU NEED TO? WELL, AT THE AT THE CORE OF IT, I MEAN, THE LAST APPRAISAL THAT WAS DONE TALKED ABOUT A 6 TO 12 MONTH MARKETING PERIOD JUST TO GET OFFERS. SO WE'RE NOT GOING TO BE MOVING FAST WITH THIS PROPERTY.
AND WE'LL HAVE PLENTY OF TIME TO COMPLETE ANALYSIS ON OTHER POTENTIAL USES.
BUT I THINK THE SIMPLE DISCUSSION RIGHT NOW IS WE WANT TO SEE IS THERE MARKET VALUE AND AT WHAT NUMBER TO COMPARE THAT TO, WHAT WILL IT COST JUST TO GET THE BUILDING BACK TO A CERTIFICATE OF OCCUPANCY OR EXCUSE ME, HEY, WE'VE GOTTEN OUR BIDS. WE DON'T LIKE THE BIDS.
THE MARKET DOES NOT HAVE A PROBLEM WITH SUBMITTING AN OFFER AND THE SELLER NOT ACCEPTING THAT OFFER.
OKAY, THANKS. WITH ALL DUE RESPECT, MY QUESTION IS FOR MR. GIBSON, THERE'S PROBABLY A CITY PROPERTY PROCESS THAT WOULD WE'D HAVE TO GO THROUGH TO RETRIEVE THAT.
AND SO THAT'S MY QUESTION IS AND THANK YOU FOR ENLIGHTENING US WITH THE 6 TO 12 MONTHS WHILE WE HAVE 3500 UNSHELTERED PEOPLE OR SHELTERED AND UNSHELTERED, YOU KNOW, FLOATING AROUND. MR. GIBSON, WHAT WOULD THE CITY'S PROCESS BE ON GETTING THAT BACK OUT OF THE MARKETPLACE, OR CAN WE DEVELOP A POLICY THAT IS NOT SO EITHER OR, BUT RATHER WE OWE IT TO OURSELVES AND OUR TAXPAYERS TO BE ABLE TO EXPLORE THIS IN THE
[01:45:02]
MARKETPLACE WITHOUT WHOLESALE SHIFTING IT INTO SURPLUS CATEGORY.I BROUGHT UP ASHLEY EUBANKS. SHE'S OUR ASSISTANT DIRECTOR FOR REAL ESTATE TO TACKLE THESE.
I THINK WHAT I WANT TO BE ABLE TO LEAVE EVERYBODY WITH IS THAT, YOU KNOW, YOU CHANGING IT TO SURPLUS DOESN'T NECESSARILY TIE OUR HANDS AND DECISIONS THAT OUR FUTURE DECISIONS THAT THE COUNCIL CAN MAKE.
AND I'LL LET MISS ASHLEY KIND OF WALK THROUGH THAT.
THERE'S BEEN OTHER PROPERTIES IN THE PAST WHERE WE HAVE DECLARED A SURPLUS AND WE NEVER SOLD, SO IT JUST REMAINS IN THE CITY'S INVENTORY. OKAY, SO THERE'S NOTHING FORMAL WE WOULD HAVE TO DO TO SAY, BY THE WAY, WE THINK WE WANT TO MR. JOHNSON'S POINT MOVE FORWARD WITH REZONING THIS, BECAUSE WHAT WE'VE HAVE TALKED ABOUT IN ALL OF THIS EXPLORATORY DISCUSSION IS THE FACT THAT THE MEDICAL USE IS DIFFICULT.
IT'S GOING TO BE DIFFICULT TO SELL. BUT THERE'S DESIRE FROM NEIGHBORS.
THERE'S DESIRE IN THE CITY TO HAVE MORE HOUSING, WHETHER THAT'S SINGLE FAMILY OR MULTI-FAMILY, WHICH COULD INCLUDE PERMANENT SUPPORTIVE HOUSING, AND THAT WE ALREADY KNOW THE DIRECTION THAT PEOPLE SEEM TO WANT THIS TO GO, ALTHOUGH THEY MAY HAVE DIFFERING OPINIONS OF WHAT KIND OF HOUSING IT IS.
SO MAYBE THAT'S A STEP WE GO ON AND TAKE IS, YOU KNOW, BECAUSE I THINK IT WOULD PLAY DIFFERENTLY IN THE MARKETPLACE IF IT HAD IF IT WAS REZONED FOR SOME SORT OF SOME SORT OF HOUSING.
AND THEN MR. JENSEN WE'VE ALSO TALKED ABOUT THE SEPARATE BACK PARCEL OF FOUR ACRES AND EVEN THE ABILITY TO SET THAT OR CARVE THAT OFF AND SELL THAT FOR HOUSING, WHETHER IT'S SINGLE FAMILY OR TOWNHOMES OR WHATEVER IT MAY BE.
WOULD THAT BE PART OF THIS EXPLORATORY. WELL, WE WILL COLLECT ANY BONA FIDE QUALIFIED OFFER, WHETHER IT'S FOR FOUR ACRES, THE ENTIRETY OR JUST THE BUILDING, ANY TYPE OF OFFER THAT COMES IN.
SO EVEN IF WE GET A LOT OF OFFERS THAT ARE NOT REALLY OFFERS, YOU KNOW, A LOT OF GROUPS THAT CAN'T GET THE FINANCING CLOSED, DON'T HAVE THE HISTORY. SO THE IDEA IS TO REALLY VET THOSE.
UNDERSTAND WHO'S BACKING THESE PROJECTS. HOW SINCERE ARE THEY? THERE CAN BE A LOT OF NOISE, BUT WE'RE TRYING TO GET TO THE SIGNAL ABOUT WHAT IS TRULY POSSIBLE IN THAT PROPERTY.
I MEAN, TO FULLY EXPLORE A REZONING THAT IS, THE BEST PRACTICES WOULD CALL FOR A PRETTY SIGNIFICANT INVESTMENT FOR THE CITY ON A DUE DILIGENCE DESIGN ENGINEERING STANDPOINT.
JUST TO UNDERSTAND THE POSSIBILITIES THERE TO GET A TRUE MARKET RESPONSE.
IF YOU ASK A DEVELOPER TO THAT, THEY'RE GOING TO VALUE THE LAND AT ZERO.
SO, WE DON'T WANT TO ASK FOR FAVORS ON THIS. SO, IT'S A, IT'S A TOUGH PROPERTY.
BECAUSE WE'RE TALKING ABOUT A LOT OF THEORETICALS.
BUT I THINK, YOU KNOW, AT THE CORE, YOU KNOW, IT SEEMS THE MOST PRUDENT TO THIS LET'S UNDERSTAND THE, THE MARKET VALUE TODAY WITHOUT ALL OF THESE EXTRA BELLS AND WHISTLES, SO TO SPEAK.
AND THEN LET'S MAKE AN INDEPENDENT DECISION. AND IS THE FEE SIMPLE VALUE TODAY COMPELLING? IF NOT WE'LL HAVE MORE INFORMATION ON THESE OTHER DUE DILIGENCE ITEMS AND MORE OF SOMETHING TO BENCHMARK AGAINST.
AND WE CAN PIVOT THE FOR SALE STRATEGY IF WE DON'T LIKE THE MARKET ACTIVITY.
AND SO IT MAY BE, IT MAY BE THAT IT'S SOMETHING WE, WE TRY FOR SIX MONTHS.
IT DOESN'T WORK. AND WE PUT IT ON PAUSE. AND WE HAVE TO TRY AGAIN IN THE FUTURE.
SO? SO WE JUST DON'T KNOW WHAT THE MARKET IS GOING TO BEAR. YEAH, YOU'D BE A POINT IN THERE WITH REGARD TO YOU COULD GIVE US WHAT WOULD HAPPEN AT GOING TO MARKET AND THEN COUNCIL WOULD LOOK AT WHAT ARE WHAT IS THE OTHER POTENTIAL USE OF THIS PROPERTY, SIZING UP OUR COMMUNITY NEEDS, OUR SOCIAL CRISES OR EMERGENCIES.
THE OTHER THING. AND, MISS EUBANKS, I LEFT YOU A VOICEMAIL BEFORE THIS MEETING.
IF THIS PROPERTY WAS TO BE USED AS TEMPORARY HOUSING AS WE GET TO EITHER PERMANENT SUPPORTIVE HOUSING OR ULTIMATELY THE MARKETPLACE SAYS WE WOULD YOU'D RECOUP YOUR INVESTMENT AND THEN SOME. AND THEN OUR SITUATION CHANGES THAT WE STILL COULD SELL IT TO BE MULTIFAMILY OR SINGLE USE.
SO HOW ARE WE GOING TO LEARN ABOUT THAT PIECE? BECAUSE YOU'VE LISTED TWO THINGS ON HERE. BUT I DO THINK THERE'S A THIRD PIECE THAT WE'RE NOT CONSIDERING ON TEMPORARY HOUSING.
[01:50:09]
COUNCIL MEMBER WILLIS, WE ARE PURSUING THE FACILITY CONDITION ASSESSMENT.IT IS MY UNDERSTANDING WE SHOULD HAVE SOMETHING NEXT MONTH.
OKAY. AND OUR NEXT. OKAY. WHO'S CONDUCTING THAT? I DON'T HAVE THAT INFORMATION IN FRONT OF ME, BUT I CAN GET THAT TO YOU. OKAY.
SO IT HAS BEEN ORDERED. SOMEONE'S DOING IT. YES, MA'AM.
OKAY. THANK YOU. OUR. ALL RIGHT, I SEE CHAIR MENDELSOHN.
GO AHEAD. I JUST WANT TO FOLLOW UP ON SOMETHING ASHLEY SAID.
YOU SAID THAT PREVIOUSLY. THERE ARE PROPERTIES THAT WERE DESIGNATED AS SURPLUS THAT WERE NEVER SOLD.
THAT IS CORRECT, MISS MENDELSOHN. AND WHAT PROPERTIES OF THAT? I DON'T HAVE A LISTING, BUT I CAN TELL YOU ONE. RIGHT OFF THE TOP OF MY HEAD WAS SOUTHERN SKATE SKATING RINK. OKAY, WELL, I THINK YOU SHOULD SHARE THAT LIST WITH US.
IT PROBABLY SHOULD HAVE BEEN A STARTING PLACE AS WE WERE EVALUATING REAL ESTATE.
I CAN GET THAT TO YOU. THANK YOU SO MUCH. AND THEN, CHAIR, BEFORE YOU'RE SITTING DOWN, I'LL JUST SAY THAT I'VE ALREADY ASKED FOR THE FIRE STATION PLAN AND THE AUTO POUND TO BE BRIEFED AT THE NEXT PUBLIC SAFETY COMMITTEE MEETING.
EXCELLENT. YEAH. I'D LIKE TO COME TO THE AUTO POUND BRIEFING FOR SURE.
SO THANK YOU FOR THAT, CHAIRWOMAN. MISS WILLIS, DID YOU HAVE SOMETHING ELSE, OR IS YOUR HAND JUST STILL UP THERE? ALL RIGHT, Y'ALL, WITH THOSE HANDS. OKAY, I THINK THAT'S IT.
EVERYBODY. I APPRECIATE YOU JOINING US. APPRECIATE DONZELL.
AND EVERYBODY IS, AS ALWAYS, FOR THIS ASHLEY OF COURSE, AS WELL.
BECAUSE I THINK WE'RE GOING TO NEED SOME TIME FOR THAT. WE'RE ALSO GOING TO HOLD ITEM F UNTIL NEXT MONTH, WHICH IS THE CITY HALL SPACE PLANNING PROJECT.
WE'RE GOING TO JUST GO THROUGH THE OTHER ITEMS FAIRLY QUICKLY.
ITEM G IS OUR THESE ARE ALL MEMO ITEMS, BY THE WAY, THE UPDATE ON THE UPCOMING REQUEST FOR COMPETITIVE SEALED PROCESS FOR EXTERNAL AUDIT SERVICES. JACK, DID YOU HAVE SOMETHING TO SAY ON THIS? YES, SIR. THANK YOU, CHAIRMAN WEST, I JUST WANTED TO MAKE MENTION OF THE MEMO THAT WAS LISTED AS ITEM G ON YOUR AGENDA.
IT IS REGARDING OUR EXTERNAL AUDIT THAT WE HAVE DONE A REQUEST FOR COMPETITIVE SEALED PROPOSALS.
THERE WERE SEVEN PROPOSALS THAT WERE SUBMITTED.
PURCHASING DETERMINED THAT SIX WERE RESPONSIVE.
THOSE HAVE BEEN RELEASED TO THIS COMMITTEE TO BE THE EVALUATION COMMITTEE FOR THIS SOLICITATION.
WE DO NEED THE COMMITTEE MEMBERS TO COMPLETE THEIR SCORING ONLINE IN BONFIRE BY MAY THE 30TH, SO THAT WE CAN KEEP THIS MOVING FORWARD. THEN, BASED UPON THOSE SCORES WE WILL DETERMINE IF ANY NEED TO COME TO THIS COMMITTEE FOR INTERVIEW OR IF THERE'S ONE THAT HAS SCORED THAT'S GOING TO BE RECOMMENDED.
THEN WE MAY NOT NEED TO DO INTERVIEWS, BUT THAT WILL BE UP TO YOU.
COUNCIL MEMBER WEST, ON WHETHER YOU WANT TO BRING THE TOP THREE OR HOW YOU WANT TO HANDLE ACTUAL INTERVIEWS, AND WE CAN WAIT UNTIL AFTER THE SCORING IS COMPLETE FOR YOU TO DETERMINE TO DETERMINE THAT.
OKAY, I'M ONE OF THE ONES GUILTY OF NOT DOING MY SCORING YET.
AND SO BY SCORING IS DUE BY MAY 30TH. GOT IT.
I SEE A VICE CHAIR. YOU GOT TO. GOT SOMETHING.
WHY ARE WE GETTING INTO THE CONTRACT REVIEWS WORLD? COULD YOU REPEAT THE QUESTION? WHY ARE WE GETTING INTO THE CONTRACT REVIEW WORLD? JACK, CAN YOU TAKE THAT? SO. SO, THE REVIEW IS OF THE PROPOSALS FOR THE EXTERNAL AUDITOR.
AND THIS COMMITTEE HAS SERVED AS THE SELECTION COMMITTEE FOR THAT IN THE PAST.
OKAY. AND I WILL ASK LANCE. LANCE, IF YOU HAVE ANYTHING ADDITIONAL THAT YOU WANT TO SAY, PLEASE COME, PLEASE COME UP. YEAH. AND I THINK THE CORE OF THE QUESTION IS WHY WOULD PROCUREMENT? WHY IS IT US LIKE WHO? WE DON'T NECESSARILY HAVE SKILLS IN AUDITING ON THIS COMMITTEE, YOU KNOW,
[01:55:01]
NOR IN REVIEW. I MEAN LIKE CONTRACT. IT'S LIKE I WHEN ANYBODY SAYS SOMETHING ABOUT A CONTRACT, I RUN THE OTHER WAY. YEAH. OR HIRE SOMEONE. YEAH.YEAH. IT'S. I JUST HATE BECAUSE IT OPENS UP A LOT OF, I THINK, IMPLICATIONS.
BUT IF THIS IS THE WAY IT'S DONE IN THE PAST.
GO AHEAD. HELLO, MY NAME IS LANCE SEAHORN. I'M THE ASSISTANT CITY COMPTROLLER.
AND THIS PROCUREMENT, IT'S MENTIONED IN THE CITY CHARTER.
SO, THAT'S WHY YOU GUYS ARE THE PROCUREMENT COMMITTEE.
YES. AND IF I CHOOSE NOT TO RANK THEM. AND I SAY THAT I'VE JUST NOT FULFILLED MY CHARTER DUTY.
I'M GOING TO LET JUANITA ORTIZ SPEAK TO THAT, BECAUSE I'M NOT AN EXPERT ON THE PROCUREMENT PROCESS.
YEAH. I MEAN, I GOT THE EMAIL AND I'M JUST LIKE, I DON'T LIKE TO DO THIS STUFF AS A PRACTICE.
AND I, AND EVEN THOUGH WHILE THE CHARTER SAYS IT, I JUST FEEL IT'S AGAINST WHAT I.
SO, CAN YOU INTRODUCE YOURSELF, PLEASE? JUANITA ORTIZ, DIRECTOR OF PROCUREMENT SERVICES.
THE CITY ATTORNEYS HAVE REVIEWED THE CHARTER LANGUAGE AND DETERMINED THAT THE CITY COUNCIL IS THE EVALUATION COMMITTEE IN ORDER TO AWARD THIS CONTRACT. SO, WE INVITED ALL THE GPFM COMMITTEE TO PARTICIPATE.
I THINK IT'S A COUNCIL DECISION IF NOT EVERYONE WANTS TO PARTICIPATE TO DO THAT, WE JUST NEED TO KNOW THAT WE HAVE ENOUGH EVALUATORS ON THE COMMITTEE TO PROVIDE A A REASONABLE EVALUATION. THANK YOU. THANK YOU.
CHAIR MENDELSOHN. WELL, THANK YOU. I HAVE DONE THIS BEFORE.
CAN YOU HEAR ME? IT SOUNDS LIKE AN ECHO TO ME.
WE CAN HEAR YOU. OKAY. YOU'RE ECHOING IN THE VIRTUAL WORLD.
SORRY. THE PROCESS INCLUDES BOTH TRAINING FROM THE PROCUREMENT DEPARTMENT ON HOW TO DO PROCUREMENT EVALUATION AND THEN REVIEWING EACH OF THE SUBMISSIONS, WHICH ARE BASICALLY JUST PROPOSALS ON HOW THE DIFFERENT AUDITORS WILL APPROACH THIS, WHAT THEIR EXPERIENCE IS. AND THERE ARE SOME VERY BIG DIFFERENCES.
AND AS YOU GO THROUGH THEM, YOU'LL FIND THAT THERE ARE SOME VERY BIG DIFFERENCES.
THIS IS, OF COURSE, EXTREMELY IMPORTANT, SINCE THEY WILL BE LOOKING THROUGH ALL OF OUR BOOKS AND PROVIDE US THE REASSURANCE THAT WE NEED THAT OUR FINANCES ARE BEING HANDLED APPROPRIATELY. I WILL, HOWEVER, CAUTION.
IT'S EXTREMELY TIME CONSUMING, AND MY RECOLLECTION WHEN WE DID THIS LAST TIME, I MEAN, I THINK I SPENT 15 TO 20 HOURS REVIEWING ALL OF THE DIFFERENT PROPOSALS.
TO COUNCIL MEMBER BLACKMON'S POINT, NOT EVERYBODY ON THE COMMITTEE PARTICIPATED WHEN I WAS CHAIR.
I THINK ONLY THREE OF THE PEOPLE DID. SO THAT, YOU KNOW, YOU CAN'T MAKE SOMEBODY PARTICIPATE.
AND WE NEVER ACKNOWLEDGED WHO PARTICIPATED AND WHO DID NOT.
SO, I WOULD JUST ENCOURAGE PEOPLE TO BE THOUGHTFUL WHEN THEY DO IT.
IF YOU WANT SOME TIPS, I'M HAPPY TO GIVE TIPS ON THINGS THAT MADE IT EASIER FOR ME TO SCORE.
THERE IS A RUBRIC BUT SETTING SOME PARAMETERS FOR YOURSELF HELP US DETERMINE HOW TO SCORE THESE BEST, AND I WILL SAY THAT IT GIVES SOME INSIGHT INTO HOW WE END UP WITH RECOMMENDATIONS FROM STAFF AS THEY'RE EVALUATING PROCUREMENTS. AND YOU SEE HOW ARBITRARY SOME OF THIS ACTUALLY IS.
THANK YOU. ALL RIGHT. THANK YOU. WE'RE GOING TO MOVE ON TO ITEM H.
JACK, IS THERE ANYTHING WE NEED TO KNOW ABOUT THIS THIS ACCELERATOR PROGRAM SERVICE CONTRACT?
[02:00:05]
OTHER THAN WHAT'S IN THE MEMO? YEAH, THE DALLAS ACCELERATOR PROGRAM WAS STARTED IN 2023, AND WE HAD THREE CONTRACTS AT THE TIME FOR ADMINISTRATORS OF THE PROGRAM.AND SO THEY ARE RESPONSIBLE FOR PROVIDING TRAINING TO SMALL BUSINESSES IN ORDER TO HAVE THEM, YOU KNOW, BID ON CITY CONTRACTS, BUILD CAPACITY.
WE'VE HAD 60 DIFFERENT VENDORS PARTICIPATE IN THE PROGRAM AND GRADUATE.
AND SO THIS IS A CONTINUATION OF THAT PROGRAM.
HOW MANY OF THE PARTICIPANTS THAT HAVE GONE THROUGH THE PROGRAM HAVE GONE ON TO GET A CONTRACT FROM THE CITY? AND RIGHT NOW, WE DON'T HAVE THAT INFORMATION.
WE DO HAVE SOME INFORMATION ON THE VENDORS THAT HAVE COMPLETED AN INCREASE IN THEIR REPORTED REVENUES. AND THEN WE ALSO HAD ONE THAT WAS IDENTIFIED AS A SMALL BUSINESS OF THE YEAR PARTICIPANT.
WE HAVE SOME DATA, BUT IT JUST TAKES TIME TO GO THROUGH THE PROCESS.
SO, I THINK IT'LL TAKE SOME TIME BEFORE WE GET AN ACTUAL COUNT OF THOSE.
I'M SORRY, ARE YOU SAYING YOU DON'T HAVE A COUNT OR YOU'RE SAYING THERE ARE NONE? AT THIS POINT, I DON'T BELIEVE THAT THERE'S. OH, THERE'S TWO.
SORRY. THERE'S TWO INDIVIDUALS THAT HAVE BEEN AWARDED A CONTRACT.
AND WE CAN GET THAT INFORMATION FOR YOU ON WHAT THAT CONTRACT IS OR WHAT THOSE CONTRACTS ARE.
WELL, WE'RE SPENDING NEARLY $1 MILLION, AND I'M JUST TRYING TO SEE WHAT WE'RE GETTING FOR IT.
HOW MUCH IS THE COUNTY PUTTING INTO THIS PROGRAM? IT LOOKS LIKE THEY MAY BE A LARGER FUNDER OF IT.
IS THAT CORRECT? THIS PROGRAM IS UNIQUE TO THE CITY OF DALLAS.
WE'RE THE ONLY FUNDING SOURCE FOR THIS CONTRACT.
ARE YOU SAYING THAT THE COUNTY'S NO LONGER FUNDING IT OR ARE THERE SOME OTHER ARRANGEMENT.
IT WAS TRANSITIONED TO THE PURCHASING DEPARTMENT IN AUGUST.
OH, GO AHEAD. I'M GOING BACK TO MY MEMORY BANKS, MISS MENDELSOHN.
IF I'M NOT MISTAKEN, I THINK WE SAT NEXT TO ONE ANOTHER AT THIS, AT THIS MEETING.
THE ACCELERATOR PROGRAM AT THAT PARTICULAR DALLAS HISPANIC CHAMBER LUNCHEON WAS HIGHLIGHTED THERE, BUT THERE WERE MANY OTHER GRADUATES FROM OTHER SUB PROGRAMS THAT THE GREATER DALLAS HISPANIC CHAMBER WAS MANAGING.
SO IT WASN'T JUST DAP, ONLY YOU KNOW WHAT? NOW THAT YOU SAY IT, YOU'RE RIGHT.
THERE WERE MULTIPLE GRADUATIONS ALL AT THAT SAME EVENT.
SO WHY DO WE NEED TO DO A PROGRAM WHEN THE COUNTY AND OTHER GROUPS ARE ALREADY DOING THE SAME OR ALMOST THE SAME PROGRAM? I THINK THEY I DON'T HAVE THE PROGRAM IN FRONT OF ME, AND I DON'T REMEMBER ALL THE PROGRAMS BY HEART, BUT I THINK THEY ALL HAD DIFFERENT TARGET AUDIENCES.
WE'LL LOOK TO SEE IF THERE WAS ANY, ANY OVERLAP.
WE CAN ENGAGE THE COUNTY TO SEE IF THERE'S ANY.
BUT AS MISS ORTIZ MENTIONED, THIS ONE IS VERY SPECIFIC TO THE CITY OF DALLAS AND DOING BUSINESS IN THE CITY OF DALLAS WITH THE CITY OF DALLAS, TO GROW YOUR CAPACITY FROM GOING TO A, I MEAN, FROM A SUB TO A PRIME.
SO AGAIN, IT'S $1 MILLION DOLLARS, Y'ALL. THANK YOU.
THANK YOU. WE ARE OKAY. COLLEAGUES ON ITEM I, THAT IS THE 90 PAGES OF DOCUMENTS THAT WE VERY MUCH APPRECIATE THE BUDGET MANAGEMENT OFFICE PROVIDING US WITH. I'M GOING TO HOLD THAT UNTIL NEXT MONTH.
GIVE PEOPLE TIME TO GET THEIR QUESTIONS TOGETHER.
DO WE HAVE ANYBODY ON ITEM J? TO ANSWER QUESTIONS IF THERE ARE QUESTIONS.
THIS IS THE QUARTERLY REPORT ON REMAINING UNENCUMBERED GENERAL OBLIGATION BONDS.
YES, SIR. WE HAVE INDIVIDUALS FROM THE OFFICE OF BOND MANAGEMENT.
[02:05:03]
AND I WILL JUST SAY THAT THIS IS A CONTINUES TO BE A REALLY GREAT REPORT.VERY HAPPY TO SEE THE BOND OFFICE PUTTING THIS TOGETHER.
COLLEAGUES, DO YOU HAVE ANY QUESTIONS? YOU GUYS SKATED BY.
GOOD JOB. ALL RIGHT. ITEMS K THROUGH N? I DON'T SEE ANY REASON WE CAN'T HOLD THOSE OFF UNTIL NEXT MONTH AS WELL. IS THERE ANYTHING BURNING FROM MY COLLEAGUES ON THIS ON ANY OF THESE ITEMS. I DON'T SEE ANYBODY JUMPING UP ON THIS. AND THEN LET'S JUST TOUCH ON THE PROGRESS OF THE FAMILY GATEWAY PROPERTY REPAIR PHASE TWO.
THIS IS ITEM ZERO. CAN SOMEBODY GIVE US AN UPDATE ON THAT, PLEASE? GOOD AFTERNOON, CHAIR WEST. BRIAN THOMPSON ASSISTANT DIRECTOR OF FACILITIES AND REAL ESTATE MANAGEMENT. SO, THIS WILL BE A PRETTY BRIEF UPDATE. ON MAY 12TH, WE DID START PHASE TWO REPAIR CONSTRUCTION ON BOTH THE EXTERIOR WATERPROOFING MEMBRANE AS WELL AS THE INTERIOR WINDOW REPLACEMENTS, AND IT'S PROGRESSING.
TAKE ANY QUESTIONS? I KNOW, MISS, AND I'LL GET CHAIR MENDELSOHN NEXT.
SO IN ORDER TO REALLY GET THROUGH THESE PHASE TWO REPAIRS IN THE MOST EXPEDITIOUS MANNER POSSIBLE, WE'RE HAVING TO BLOCK 18 ROOMS AT ONE TIME. SO FROM THREE LEVELS WE HAVE TO EMPTY THE ROOMS TO DO THE INTERIOR REPAIRS AND EXTERIOR REPAIRS. THAT WAY WE CAN MOVE OUR SCAFFOLDING AND BEGIN THE NEXT SET.
SO THAT IS CORRECT. UNDERSTOOD. CHAIR. GO AHEAD.
OKAY. WELL, YOUR RESPONSE WAS UNDERSTOOD. THE THING IS, I DON'T UNDERSTAND.
SO MAY 12TH AND YOU'RE SAYING THAT THE WINDOW REPLACEMENT WILL BE COMPLETE IN DECEMBER AND YOU'RE USING 18 OF THE SHELTER UNITS AT A TIME. SO THIS MAKES NO SENSE TO ME.
LIKE, IF YOU'RE USING THOSE UNITS, I'M EXPECTING YOU TO BE DONE, LIKE IN A MONTH OR TWO MONTHS.
BUT I DON'T UNDERSTAND HOW IT TAKES SIX MONTHS WITH THAT KIND OF IMPACT ON THE FACILITY.
SO AS WE. OUTLINED WHEN WE MET WITH MISS MAGNUS IN OUR PRE-CONSTRUCTION MEETING RIGHT NOW, THE PHASING SCHEDULE IS A WORST CASE SCENARIO.
THE GOAL AND OUR CONTRACTORS GOAL IS TO, NUMBER ONE HOPE THAT WE DON'T HAVE A REPAIR IN EVERY SINGLE ROOM, AROUND EVERY WINDOW. BUT ALSO, AND MORE IMPORTANTLY, IS AS THEY PROGRESS THROUGH THE CONSTRUCTION PIECE, THEY WILL IDENTIFY A METHODS AND PROCEDURES THAT WILL ALLOW THEM TO EXPEDITE THE WORK.
SO, THIS SCHEDULING WAS BUILT WITH A LOT OF UNKNOWNS AND ASSUMPTIONS INTO IT.
AND SO, THE WORST CASE SCENARIO, YOU'RE CORRECT, IS THROUGH DECEMBER.
I MEAN, IS THERE ONLY ONE GUY WORKING? WELL, NO, THERE'S NOT ONE GUY.
THEY HAVE A CONSTRUCTION CREW THAT'S DOING THE WORK.
BUT THERE'S A LOT OF. WE HAVE TWO PHASES. KEEP THAT IN MIND.
THE THE SCHEDULING ENCOMPASSES BOTH THE EXTERIOR REMOVAL AND REPLACEMENT OF THE EXTERIOR WATERPROOFING MEMBRANE, THE AS WELL AS THE INTERIOR WORK. SO. BUT BECAUSE WE HAVE TO HAVE THE SCAFFOLDING PIECE, WHICH TIES
[02:10:06]
INTO BOTH THE WINDOW REPLACEMENTS AND THE EXTERIOR WATERPROOFING MEMBRANE, THAT IS THE SCHEDULE THAT THE CONTRACTOR HAS IDENTIFIED AS BEING THE MOST EFFICIENT.WELL, THE RAIN WE JUST HAD THAT HIT. DALLAS CAME IN FROM THE NORTH.
I AM. I'M VERY CONCERNED THAT WE HAVE WE HAVE THIS SITUATION AND IT'S GOING TO TAKE THIS LONG.
I DON'T KNOW WHAT ELSE TO SAY. THIS IS WHY IT'S VERY IMPORTANT WITH PROCUREMENT, BECAUSE WE PROBABLY COULD HAVE HIRED SOMEBODY WHO COULD HAVE DONE THIS FASTER.
AGAIN, IT'S 50 UNITS. I CAN ASSURE YOU, COUNCIL MEMBER, THAT I AM MONITORING THIS PROJECT ON A DAILY BASIS. I SPEAK WITH THE CONSTRUCTION PROJECT MANAGER, AND I'M LOOKING TO IDENTIFY WAYS THAT WE CAN EXPEDITE THIS PROCESS. BUT I AM AT THE MERCY OF THE CONTRACTOR WHO IS THE EXPERT.
AND THE GOAL IS TO STREAMLINE THE WORK AS WE MOVE FORWARD AND TO COMPLETE THIS AHEAD OF THE RIGHT NOW PLANNED DECEMBER TIMELINE. OKAY. WELL, THE ONLY OTHER THING I'LL SAY IS FAMILY GATEWAY IS 100% FULL 100% OF THE TIME.
SO THANK YOU. THANK YOU. ANYONE ELSE? ALL RIGHT.
THAT CONCLUDES OUR AGENDA AT 3:20 P.M. THE MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.