* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. [1. Call the meeting to order.] [00:00:06] GOOD EVENING EVERYONE. TODAY IS TUESDAY, MAY 12TH, 2026. THIS IS THE REGULAR SCHEDULED BRIEFING SESSION FOR THE CITY COUNCIL. THIS IS AN OPEN MEETING. OPEN CARRY OF FIREARMS IS PROHIBITED IN THE COUNCIL CHAMBERS. WE DO HAVE A FULL QUORUM OF CITY COUNCIL PRESENT. I WANT TO OFFICIALLY CALL THIS MEETING TO ORDER. I HAVE 6:02 PM AND NEXT ITEM [2. City Manager Reports: City Council Calendar/Upcoming Events City Operations Conduct a briefing to discuss items for the 7:00 p.m. regular meeting] ON THE AGENDA IS THE CITY MANAGER REPORTS. HOW ARE YOU DOING, MADAM? CITY MANAGER. GOOD EVENING, MAYOR AND COUNCIL. IT IS AN HONOR AND A PLEASURE TO SERVE THIS CITY TODAY AND THIS EVENING, AND IT'S BEEN ESPECIALLY AN HONOR TO SERVE A CITY THAT UH, THIS AFTERNOON WE DID OUR FIRST EVER GROUNDBREAKING FOR OUR NEW LEGACY DOG PARK. AND JUST WANNA SAY THANK YOU TO THE CITY COUNCIL FOR GIVING US, YOU GAVE US THAT DIRECTION, UM, RIGHT AFTER I FIRST BECAME CITY MANAGER, THAT YOU WANTED TO, UH, UTILIZE, UH, FUNDS ON HAND TO BUILD A DOG PARK IN PARTNERSHIP WITH TRINITY CHURCH. AND I JUST REALLY APPRECIATE THE LEADERSHIP OF THIS CITY COUNCIL. UM, THE COMMUNITY HAS DEFINITELY SPOKEN AND ASKED FOR A DOG PARK FOR MANY, MANY YEARS, AND IT'S THIS COUNCIL THAT GOT TO GIVE US THAT DIRECTION. AND SO I JUST WANNA SAY THANK YOU FOR THAT. THANK YOU FOR YOUR LEADERSHIP AND THANK YOU FOR SHOWING UP TODAY TO HELP US CELEBRATE WITH THE COMMUNITY A GIFT THAT, UM, WE WILL GET TO HAVE A GRAND OPENING FOR HERE, HOPEFULLY BEFORE THE END OF THIS YEAR. SO, UM, MAYOR AND COUNCIL, I DO HAVE A FEW ITEMS FOR YOU. UM, UNFORTUNATELY I DIDN'T SEND MY EMAIL THIS WEEK. IT WAS MOTHER'S DAY AND I KNOW YOU LOVE MY UPDATES, BUT I DO HAVE A FEW THINGS THAT I DID WANNA MAKE SURE YOU WERE AWARE OF. UM, IT WASN'T THE SAME MADAME CITY MANAGER, . YEAH, NO, IT'S NOT THE SAME. UH, FOR THOSE IN THE AUDIENCE, I DO SEND THE COUNCIL A WEEKLY UPDATE JUST TO MAKE SURE WE'RE ALL SINGING FROM THE SAME SHEET OF MUSIC, UM, EACH WEEK. BUT I DO WANNA ANNOUNCE THAT WE HAVE SOME REALLY EXCITING NEWS IN CEDAR HILL. OUR FIRE DEPARTMENT, OUR FIRE CHIEF, UH, HARRISON, HAS PROMOTED A NEW FIRE MARSHAL TAMMY COOPER, AND I'M VERY PROUD OF HER YEARS OF SERVICE. I THINK IT'S ALMOST BEEN AS ALMOST AS LONG AS I'VE SERVED THE CITY. UM, BUT I'M VERY PROUD OF HER SERVICE TO THE CITY AND SHE WILL MAKE A VERY FINE FIRE MARSHAL. WE ALSO HAVE A NEW FIRE INSPECTOR AND I'M REALLY LOOKING FORWARD TO THEM BEING CELEBRATED BY YOU AT THE MAY 26TH CITY COUNCIL MEETING, WHICH, WHICH THEY WILL BE SWORN IN. SO UNFORTUNATELY I WON'T BE HERE FOR THAT. THAT IS A MAYA'S GRADUATION DAY FROM CEDAR HILL HIGH SCHOOL. SO I WON'T BE HERE AT THE NEXT COUNCIL MEETING, BUT YOU'RE IN GOOD HANDS 'CAUSE ALLISON WILL DO AN EVEN BETTER JOB THAN I WILL. SO SHE, YOU, YOU'VE GOT HER. UM, I DO HAVE A FEW, UH, AGENDA ITEMS. I WANNA GO OVER THE CALENDAR, JUST A FEW THINGS, AND THEN WE'LL GO THROUGH THE AGENDA AND I'LL BE PRETTY QUICK. UM, ON TUESDAY, MAY 19TH, WE HAVE A SPECIAL CALLED MEETING. THIS IS NEXT TUESDAY. Y'ALL KNOW WE'RE IN BUDGET SEASON. LAST TUESDAY WE HAD THE, UH, CIP WORKSHOP FOR STREETS, FACILITIES, AND PARKS AND DRAINAGE. AND THEN NEXT TUESDAY WE WILL HAVE THE CIP WORKSHOP FOR WATER AND SEWER. SO THAT'S AT 6:00 PM AT THE RAF HICKMAN LIBRARY. LOOK FORWARD TO SEEING YOU THERE. AND THEN WANNA REMIND COUNSEL THAT ON MONDAY, MAY 25TH IS MEMORIAL DAY. SO CITY OFFICES WILL BE CLOSED ON THAT DAY. NEXT DAY IS TUESDAY, MAY 26TH, WHICH IS OUR NEXT CITY COUNCIL MEETING. AND THEN, UM, THE LAST ITEM THAT I WANNA MENTION WITH REGARDS TO OUR CALENDAR IS, UH, THURSDAY, JUNE 4TH THROUGH SATURDAY, JUNE 6TH IS MISSION CEDAR HILL BIG WEEK FROM EIGHT TO 5:00 PM UH, THAT WEEKEND. SO LOOK FORWARD TO, UH, THAT WEEKEND, AND IF YOU'RE INTERESTED IN JOINING US IN A PROJECT, PLEASE LET US KNOW AND WE'LL HELP COORDINATE THAT FOR YOU. ANY QUESTIONS ON THE CALENDAR? THERE'S A LOT OF OTHER STUFF THAT I DIDN'T GO OVER ON HERE, BUT IF, IS THERE ANYTHING YOU WANTED TO ADD, MAYOR? OKAY. UM, NO, NO QUESTIONS FROM COUNCIL. NO. OKAY. ALRIGHT. ON THE AGENDA FOR TONIGHT, WE HAVE TWO REALLY GOOD BRIEFINGS AND I DEFINITELY DON'T WANT TO TAKE FROM THEM. I WOULD LIKE TO INTRODUCE THEM BEFORE I GET TO THE REGULAR AGENDA. THE ENTERPRISE FLEET SERVICES, UM, IS, UH, TRANSITION FROM OUR CURRENT, UH, PURCHASE OF VEHICLES AND, UH, REALLY LOOKING FORWARD TO OUR TEAM. UH, ASSISTANT PUBLIC WORKS DIRECTOR DAVID PARNELL, OUR FINANCE DIRECTOR, CHUCK FOX, AND OUR ENTERPRISE, UH, CONSULTANT JENNIFER. SHE WILL, THEY WILL ALL GIVE A PRESENTATION TO CITY COUNCIL ON OUR TRANSITION, WHICH WE ARE PROPOSING ON HOW WE PROCURE FLEET VEHICLES THROUGHOUT THE CITY. UM, CURRENTLY, AND I DON'T WANT TO GIVE AWAY ALL OF THEIR INFORMATION, BUT CURRENTLY WE HAVE AN AVERAGE FLEET [00:05:01] AGE OF NINE AND A HALF YEARS. WE DRIVE THE VEHICLES TILL THE WHEELS FALL OFF. AND WE'VE LOOKED FOR SOLUTIONS THAT WE COULD HAVE A NEWER, MORE MODERNIZED, LESS INTENSE ON MAINTENANCE FLEET, UH, WITHIN THE BUDGET THAT WE CURRENTLY CARRY, AND FEEL CONFIDENT THAT WE HAVE A SOLUTION THAT WE WOULD LIKE TO PUT INTO PLACE A MINIMUM OF THREE YEARS AND FIGURE OUT, UH, THE BENEFITS, UH, OF THAT FOR THE CITY OF CEDAR HILL AND COME BACK TO YOU TO, FOR, FOR YOUR CONTINUED GUIDANCE. SO LOOKING FORWARD TO THAT. THE NEXT ONE IS ON A PRESENTATION ON THE CLEAN CITY INITIATIVE. THIS IS ABSOLUTELY AN INITIATIVE THAT WAS STARTED BECAUSE OF YOUR VISION FOR THE CITY OF CEDAR HILL. UM, WE, UH, RESPONDED TO COUNCIL'S DESIRE TO KEEP OUR LIVING ROOM CLEAN, WHICH WE CALL HIGHWAY 67 CORRIDOR. AND, UM, WE DE DECREASE THE, WE INCREASE THE FREQUENCY IN WHICH WE DO CLEANUPS ALONG HIGHWAY 67 FROM 14 DAYS FROM EVERY 14 DAYS TO EVERY 10 DAYS, WHICH THAT MEANS WE NOW DO LITTER CLEANUPS ALONG HIGHWAY 67 3 TIMES EVERY MONTH. AND THAT'S A SIGNIFICANT IMPROVEMENT FROM WHAT WE USED TO DO, UH, BEFORE. AND WE, WHERE WE HAD A LOT OF ISSUES WITH, WITH LITTER ABATEMENT. THE OTHER THING THAT THE COUNCIL APPROVED WAS, UH, A LITTER ABATEMENT CREW. AND I LOVE THE TRUCK WITH A SIGN THAT SAYS DIRECTED, YOU KNOW, DIRECTED BY COUNSEL. THERE'S A SIGN THAT SAYS LITTER IS TRASHY, AND WE GOT THAT STATEMENT FROM COUNCILWOMAN INE AND WE'RE REALLY HAPPY TO HAVE THAT. BUT THE, THE, THE COMBINED EFFORTS OF THOSE TWO THINGS AND THE LITTER ABATEMENT ALONG HIGHWAY 67 AND THE LITTER CREW, IN ADDITION TO OUR AMAZING ENVIRONMENTAL MANAGER, LAUREN, IS GONNA COME UP AND GIVE YOU AN UPDATE ON SOME BEAUTIFICATION AND OTHER CLEAN CITY INITIATIVES. SO I, I DEFINITELY LOOK FORWARD TO THAT. YOU WILL ENJOY THAT PRESENTATION. ALRIGHT, WITH REGARDS TO THE AGENDA, WE HAVE AN INVOCATION FROM PASTOR FRANK ROM FROM FIRST UNITED METHODIST CHURCH. UH, LAST THURSDAY WE HAD AN AMAZING NA UH, CEDAR HILL NATIONAL DAY OF PRAYER WITH HIM. AND HE WAS JUST A DELIGHT TO LEARN, UH, FROM HIM ABOUT HIS DEFINITION OF PRAYER. AND OUR VERY OWN COUNCILMAN DID A PHENOMENAL JOB. IN ADDITION TO OUR MAYOR, A LEADER OF THE CITY, UM, YOU GUYS BOTH REALLY DID A PHENOMENAL JOB LAST THURSDAY. THANK YOU FOR THAT. PRESENTATIONS INCLUDE A PROCLAMATION DESIGNATING THE DESIGNATING THE WEEK OF MAY 17TH THROUGH 23RD. AS NATIONAL PUBLIC WORKS WEEK, OUR COUNCIL CHAMBERS WILL BE FULL OF PUBLIC WORKS FOLKS HERE SHORTLY. LOOKING FORWARD TO HONORING THEM. THEY ARE THE BACKBONE OF OUR CITY. THEY ARE FIRST RESPONDERS WHEN WE NEED THEM THE MOST. THEY CLEAN THE STREETS, MAKE SURE THE WATER'S CLEAR, MAKE SURE THE TOILET'S FLUSH. THEY ARE ESSENTIAL TO PUBLIC SERVICE DELIVERY, AND WE ARE LOOKING FORWARD TO HONORING THEM FOR NATIONAL PUBLIC WORKS WEEK IN CEDAR HILL. WE ALSO HAVE A PROCLAMATION DESIGNATING THE MONTH OF MAY, 2026 AS A LS AWARENESS MONTH IN CEDAR HILL. SEVERAL OF YOU SENT ME AN EMAIL, UH, REQUESTING THIS ITEM TO BE ON THE CITY COUNCIL AND IT'S ON FOR YOUR CONSIDERATION TONIGHT. THE THIRD ITEM IS A PROCLAMATION DESIGNATED IN THE MONTH OF MAY, 2026 AS NATIONAL TRAVEL AND TOURISM MONTH IN CEDAR HILL. UM, THE CITY HAS TAKEN VERY DELIBERATE INTENTIONAL STRATEGIC EFFORTS TO ENSURE WE ARE TOURISM. UH, WE HAVE A TOUR, A PLACE FOR IN THE DALLAS FORT WIND METROPLEX FOR TOURISM AND FOR STAYCATIONS AND FOR THOSE OUTSIDE OF OUR STATE. AND WE ARE, UH, LOOKING FORWARD TO RECEIVING THAT PROCLAMATION. ITEM D IS A PRESENTATION OF THE BEST SOUTHWEST PARTNERSHIP, MAYORAL SCHOLARSHIP, AND ITEM E IS REMARKS FOR FROM CITY COUNCIL AND RECOGNITION OF COUNCIL MEMBER DANIEL C. HAYDEN. 26 YEARS OF DEDICATED SERVICE TO THE CITY. THEN WE GET TO ELECTION MATTERS. WE WILL CANVAS THE RESULTS OF THE MAY 2ND, 2026 GENERAL ELECTION FOR PLACE TWO AND PLACE SIX INSTALLATION OF CITY COUNCIL MEMBERS AND CONSIDER ELECTING A MAYOR PRO TEM CITIZENS FORUM IS NEXT. AND THEN WE GET INTO PUBLIC HEARINGS. YOU HAVE CASE PD 7 50 20 25. IT'S A PUBLIC HEARING TO CONSIDER AN APPLICATION FOR CHANGE IN ZONING FROM LR LOCAL RETAIL TO A PD PLAN DEVELOPMENT FOR MANY WAREHOUSE SELF STORAGE ON A PROPERTY ADDRESS LOCATED AT 10 38 EAST WINTERGREEN ROAD. COUNSEL. YOU HAVE, UM, WE'LL HAVE A PRESENTATION BY OUR PLANNING DIRECTOR ANGELA SELF ON THIS AGENDA ITEM. AND, UM, THE APPLICANT MAY ALSO BE HERE, UH, FOR A QUICK PRESENTATION AS WELL. YOUR CONSENT AGENDA ITEM INCLUDES MINUTES, ADOPTING A CALENDAR OF REGULAR CITY COUNCIL MEETINGS FOR THE NEXT 12 MONTHS. UM, THIS UPCOMING YEAR, WE HAVE POSTED AN AGENDA FOR THE SECOND AND [00:10:01] FOURTH TUESDAY FOR EVERY MONTH, EXCEPT FOR NOVEMBER AND DECEMBER. AND THEN SEPTEMBER HAS A THIRD MEETING, WHICH WE'VE DONE HISTORICALLY IN THE PAST FOR TAX RATE AND, AND, UH, NECESSARY ITEMS. ITEM SEIZE TO AUTHORIZE THE MAYOR TO EXECUTE SUPPLEMENTAL WORK AUTHORIZATION NUMBER ONE IN THE AMOUNT OF 66 60 6,400 WITH KIMLEY HORN FOR ADDITIONAL ENGINEERING SERVICE FOR THE MEADOW CREST PUMP STATION. COUNSEL, WE REVIEWED THIS ITEM. WE WILL REVIEW THIS ITEM AT THE UPCOMING WATER AND SEWER CIP, BUT IT'S HERE. IT'S BEEN IN THE FIVE YEAR CIP FOR, UH, FIVE YEARS, AND WE'RE READY FOR THE NEXT STEPS. ITEM D IS TO CONSIDER AUTHORIZING THE PURCHASE OF STREET REPAIR SERVICES WITH REYNOLDS ASPHALT AND CONSTRUCTION COMPANY AND THE AMOUNT OF 1.1 MILLION FOR ASPHALT STREET IMPROVEMENTS. COUNSEL, IF YOU REMEMBER, UH, THE STAFF DID A INDEPENDENT STUDY OF ALMOST EVERY SQUARE MILE OF OUR CITY AND EACH ROAD RECEIVED A PCI INDEX SCORE, WHICH KIND OF LOOKED BENEATH THE SURFACE LEVEL AND LOOKED FOR CRACKS, HOW THE, UH, SOILS ARE SETTLING. AND, UM, THERE WAS A QUESTION DURING LAST WEEK, CIP FROM, UH, COUNCILMAN MCCURDY ABOUT TEXAS PLUME ROAD AND THE ASPHALT OVERLAY. AND WE WENT BACK TO THAT STUDY AND LOOKED AT THE PCI RATING SCORE AND IT JUSTIFIED NEEDING REPLACEMENT. AND SO IT MIGHT NOT BE EVIDENT FROM THE EYE AT THE STREET LEVEL, BUT IT REALLY DOES. AND SO WE ARE ASKING TO CONTINUE MOVING FORWARD WITH THIS CONTRACT, WHICH DOES INCLUDE TEXAS PLUME ROAD. UM, IN THIS NEXT YEAR, WE'RE COMMITTED TO LOOKING AT MOUNT LEBANON FOR, UH, TO PROGRAM FUTURE THIS NEXT YEAR'S SET OF ASPHALT CONCRETE OVERLAY FUNDS. AND SO, UM, I HAVE HAD THAT DISCUSSION WITH COUNCILMAN MCCURDY AND WE'RE COMMITTED TO LOOKING AT THAT ROAD TO SEE WHAT WE NEED TO DO FOR THE FUTURE. ITEM E IS CASE NUMBER FP 7 82 DASH 2026 IN ACCORDANCE WITH PLANNING AND ZONING COMMISSIONS. RECOMMENDATION APPLICATION FOR FINAL PLAT FOR BALCONES RANCH EDITION PHASE ONE. THIS IS THE FINAL PLAT PER PD, ORDINANCE NUMBER 20 24 8 13 DISTRICT, GENERALLY LOCATED SOUTH OF LAKERIDGE PARKWAY AND WEST OF HIGHWAY 67. COUNSEL. THIS IS THE FINAL PLAT FOR BALCON RANCH FOR PHASE ONE ONLY, WHICH INCLUDES I THINK TWO, A LITTLE OVER 200 HOMES. UH, EACH PHASE WILL BE PLATTED, UH, SEPARATELY IN THE NEXT PHASE. THEY HAVE ALREADY SUBMITTED PLANS FOR PHASE TWO AND THERE'LL BE ANOTHER AT APPROXIMATELY 200 HOMES AS WELL. AND SO THAT IS A FOUR YEAR CONSIDERATION THIS EVENING. AND THEN, UM, THE ITEM, THE NEXT ITEM ON THE AGENDA IS CLOSED SESSION. HOWEVER, WE WON'T BE HAVING THAT TONIGHT. UH, WE WILL MOVE THAT TO TUESDAY, JUNE 9TH, UM, FOR A GLOW SESSION ON HOTEL CONVENTION CENTER. MAYOR, I'LL HAND IT OVER TO YOU. ANY QUESTIONS? UM, TO, FOR CLARIFICATION ON CONSENT ITEM D UM, WHAT WAS THE NAME OF THE STREET THAT YOU JUST MENTIONED? YOU? TEXAS PLUME ROAD. OKAY, SO, SO THAT'S NOT INCLUDED ON THE, ON THE LIST? IT IS. OKAY. I DON'T SEE TEXAS PLUME ON THE, ON THE, ON THE COUNCIL, UM, I GUESS WORKSHEET MOUNT LEBANON. MY APOLOGIES. OH, MOUNT LEBANON ROAD. OH, TEXAS P OKAY. SEE IT. THAT'S MOUNT LEBANON'S ALREADY ON THE LIST. GOT IT, GOT IT. OKAY. SO THAT DID ADDRESS, THAT DOES ADDRESS YOUR AREA YOU WAS TALKING ABOUT? YES, THAT, THAT'S WHAT WE WERE DISCUSSING. OKAY. ALRIGHT. THAT'S, THAT'S CLARIFICATION I NEEDED. ALRIGHT, ANY OTHER QUESTIONS? COUNSEL ANY ITEMS ON CONSENT TO BE PULLED FOR DISCUSSION? ALL RIGHT, MADAM CITY MANAGER. THANK YOU. THANK YOU. ALL RIGHT, NEXT ITEM [3. Presentation on Enterprise Fleet Services.] ON THE AGENDA IS PRESENTATION ON ENTERPRISE FLEET SERVICES. AND THIS BE PRESENTED BY FINANCE. OH, WE GOT, UM, I GOT CHUCK FOX ON HERE, BUT YOU'RE TAKING THE LEAD ON THIS ONE? YES, SIR. OH, OKAY. ? YES, SIR. ALL RIGHT, GO AHEAD. UH, GOOD AFTERNOON. ALRIGHT, MAYOR, COUNCIL MADAM, CITY MANAGER, UH, STAFF. I JUST WANNA SAY THANK YOU, UH, FOR THE OPPORTUNITY TO BE HERE TO REPRESENT, UH, IT WAS A COLLABORATIVE EFFORT, UH, TO PUT THIS TOGETHER. IT WAS NOT JUST MYSELF, IT WAS NOT JUST PUBLIC WORKS, IT WAS FLEET WITHIN PUBLIC WORKS, IT WAS THE POLICE DEPARTMENT. IT WAS, UH, CITY ADMIN AND THEN FINANCE, THE FINANCE DEPARTMENT AS WELL. SO I JUST WANNA SAY THANK YOU AND RECOGNIZE, UH, THE EFFORTS OF ALL THOSE PERSONNEL AND MEMBERS. UH, WE ENVISION CEDAR HILL AS A PREMIER CITY THAT RETAINS ITS DISTINCTIVE CHARACTER, UH, WHERE FAMILIES AND BUSINESSES FLOURISH IN A CLEAN AND SAFE ENVIRONMENT. THE MISSION OF THE CITY OF CEDAR HILL IS TO DELIVER THE HIGHEST QUALITY MUNICIPAL SERVICES, CONSISTENT WITH OR FOR OUR CITIZENS AND OUR CUSTOMERS, CONSISTENT WITH OUR VALUES, [00:15:01] WITH OUR COMMUNITY VALUES, WHICH ARE PEOPLE AND RELATIONSHIPS, STEWARDSHIP, HIGHEST ETHICAL STANDARDS AND BEHAVIOR AND INTEGRITY AND SERVANT LEADERSHIP. UH, WE DO THIS BY PURSUING PREMIER, WHICH IS DISTINCTIVE CHARACTER, CLEAN, SAFE, VIBRANT PARKS, TRAILS AND NATURAL BEAUTY ENGAGED COMMUNITY, EXCELLENT, SAFE AND EFFICIENT INFRASTRUCTURE, THE STRONG AND DIVERSE ECONOMY IN TEXAS SCHOOLS OF CHOICE. TONIGHT WE'RE TALKING ABOUT THE PREMIER, UH, PREMIER FLEET SERVICE FOR THE CITY OF CEDAR HILL. UH, WE'VE BEEN WORKING ON THIS FOR SEVERAL MONTHS, AND AGAIN, I THANK YOU FOR THE OPPORTUNITY TO PRESENT ON BEHALF OF STAFF. UH, WITH THIS. OUR OBJECTIVES ARE TO DELIVER EFFICIENT AND EFFECTIVE FLEET SERVICES TO THE ENTIRE ORGANIZATION TO PROVIDE COST SAVINGS OR COST NEUTRAL OPPORTUNITY TO MAKE THE BEST USE OF STAFF ADMINISTRATIVE CAPACITIES TO ENSURE BUY-IN AND SUPPORT OF CITI CITY DEPARTMENTS AND ENHANCE THE CITY'S BRANDING AND PHYSICAL PRESENCE WITHIN THE COMMUNITY. OUR CURRENT FLEET PROCUREMENT. OUR CURRENT FLEET PROCUREMENT IS BASED ON PAST LEADERSHIP SUCCESSES, WHICH INVOLVED THE EQUIPMENT REPLACEMENT FUND, WHICH PROVIDED, UH, THE FINANCIAL STABILITY TO WORK THROUGH THIS TO PROVIDE THE FLEET THAT WE CURRENTLY HAVE. AND I WANNA RECOGNIZE COUNCILMAN SIMS FOR HIS EFFORTS TO BRING THIS TO FRUITION FOR THE CITY TO DO THIS AND BE ABLE TO, UH, FUND THE VEHICLES THAT WE CURRENTLY HAVE. ADDITIONALLY, AND I BELIEVE SOME OF THESE PERSONNEL WILL BE HERE LATER THIS EVENING, OUR PREMIER FLEET MAINTENANCE SERVICE. UH, WE HAVE THREE MECHANICS AND A FLEET SUPERINTENDENT THAT WORK DAY IN AND DAY OUT FROM THE MOMENT THEY ARRIVE, HEAD UNDER THE HOOD, UP IN THE FENDER WHEEL, WORKING DAY IN AND DAY OUT TO MAKE SURE THAT WE GET OUR VEHICLES BACK ON THE STREET AS QUICKLY AS POSSIBLE. UH, AND IT'S BECAUSE OF THEIR INGENUITY, BECAUSE OF THEIR TECHNICAL PROFICIENCIES AND EXPERTISE THAT WE HAVE, WHAT WE HAVE NOW AND THAT WE KEEP IT ON THE ROAD. OUR CURRENT FLEET STATUS, WE HAVE A TOTAL DMV REGISTERED VEHICLES OF 162. UH, FOR THIS PROGRAM, WE'RE LOOKING AT 122 STANDARD USE VEHICLES THAT WOULD GO WITHIN THE 36 SQUARE MILES OF THE CITY. UH, THAT'S VEHICLES THAT ARE ONE TON AND BELOW. AND THEN THERE ARE OTHER VEHICLES THAT, UH, ARE RETAINED THAT WOULD NOT BE IN THIS, UH, PROJECT RIGHT AWAY. OUR CURRENT AVERAGE LIFESPAN IS 9.6 YEARS. UH, I WOULD LIKE TO POINT OUT THAT I DID, AS I WAS LOOKING THROUGH THE LIST, UM, I FOUND ONE VEHICLE THAT DOES IN FACT QUALIFY FOR DEPARTMENT OF MOTOR VEHICLE CLASSIC LICENSE PLATES. AND SO IF YOU KNOW WHAT THAT MEANS, THAT MEANS THAT VEHICLE'S 25 YEARS OLD. AND I THINK WHAT THAT SAYS, IT SAYS A COUPLE THINGS. ONE, WE'RE TAKING CARE OF WHAT WE'VE GOT AND WE APPRECIATE WHAT WE'VE GOT. WE'RE STILL USING WHAT WE'VE GOT. UH, BUT WE DO HAVE, THERE'S ONE VEHICLE THAT'S LISTED ON THAT THAT MEETS THOSE QUALIFICATIONS. UM, OUR PRESENT LIFECYCLE. SO CURRENTLY STAFF, WHICH INCLUDES FLEET AND PD, ARE RESPONSIBLE FOR PROCURING THE VEHICLES. SO THEY GET, THEY GET FROM THE DEPARTMENTS OR WITH THE DEPARTMENT INTERNAL FOR PD, THE VEHICLES THAT WE NEED. THEY EITHER GO ON THE REPLACEMENTS OR PROGRAM REQUESTS AND THEN THEY GO AND THEY, THEY FIND THOSE VEHICLES AND THEY PURCHASE 'EM BASED ON AGREEMENTS THROUGH, BY BOARD, ET CETERA. UH, AND THEN WE CONDUCT IN-HOUSE MAINTENANCE ON ALL THOSE VEHICLES AT THE FLEET SERVICE, UH, FACILITIES, WHICH I BELIEVE ALL OF YOU VISITED, UH, ABOUT WAS THAT TWO MONTHS AGO. UH, AND AS THESE, AS THESE VEHICLES AGE, I SAW A MECHANIC THAT WAS WORKING ON ONE. HE HAD TO REPLACE THE TURBO ON A VEHICLE. THE BOLTS BROKE OFF IN THE HEAD. HE WAS HAVING A SUPER HEAT OR, OR BROKE OFF IN THE BOLT OR IN THE, UH, EXCUSE ME, IN THE ENGINE BLOCK. YES. AND HE WAS HAVING TO SUPERHEAT THEM TO TRY TO GET THEM TO, TO LOOSEN AND, AND DO ALL THESE EXTRA THINGS. UH, WHAT WE'RE LOOKING AT HERE, UH, GOING FORWARD IS WE'D BE REDUCING SOME OF THOSE, UH, REPAIRS BECAUSE WE'D BE MOVING MORE TOWARDS MAINTENANCE, BUT WE CONDUCT THAT IN-HOUSE MAINTENANCE, UH, HERE FOR THE CITY. AND THEN AT THE END OF A VEHICLE'S USEFUL LIFE. I THINK THAT'S IMPORTANT THAT WE PUT THAT ON THERE. USEFUL LIFE, UH, BECAUSE THERE ARE OTHER WAYS THAT WE CAN USE VEHICLES, UM, WHETHER THEY STILL RUN, IF THERE'S PARTS AVAILABLE ON THE VEHICLE, ET CETERA. UH, WE THEN AUCTION THOSE VEHICLES IN-HOUSE, UH, THROUGH FLEET. OUR PROPOSAL, UH, BY STAFF IS A MORE PREMIER FLEET. AND WHAT WE'RE LOOKING AT IS A STRUCTURE, UH, WITH ENTERPRISE FLEET MANAGEMENT TO LEASE THE VEHICLES. UH, WE WOULD CONTINUE OUR OWN IN-HOUSE MAINTENANCE ON THOSE VEHICLES. AND THEN ENTERPRISE FLEET MANAGEMENT WOULD RESELL VEHICLES TO MAXIMIZE THE RETURN TO EQUITY. UH, I WON'T TAKE ANY OF THAT AWAY FROM JENNIFER AS SHE'LL GO THROUGH THE SUPPLY DEMAND CURVES AND EVERYTHING THAT THAT, THAT ENTAILS. AND THEN THEY USE THE EQUITY OFFSETS OF SELLING THOSE VEHICLES FOR THE NEW LEASES. AND THAT'S WHERE WE GET THAT COST SAVINGS OR [00:20:01] COST NEUTRAL. UH, AND WE ARE, WE AGREED, UH, AMONGST STAFF WITH ADMIN FOR A THREE YEAR PROGRAM WHERE WE'RE GONNA REVIEW THIS AND THEN REASSESS AT THE 36 MONTH MARK, UH, PENDING YOUR APPROVAL. UH, THE OPPORTUNITIES WE HAVE ARE RIGHT SIZING. WHEN I LOOK AT RIGHT SIZING, I EXPLAIN THIS TO THE DIRECTORS, UH, THAT'S LIKE TALENT MANAGEMENT. WE'RE LOOKING FOR THE RIGHT VEHICLE AT THE RIGHT TIME. SOME OF THE VEHICLES WE HAVE ARE HANDED DOWN, THEY MAY NOT, THEY'RE A GOOD VEHICLE. WE HAVE THEM, IT'S THE RIGHT TIME, BUT IT MAY NOT BE THE RIGHT VEHICLE. AND WHAT WE'RE LOOKING AT WITH THIS PROGRAM AND THE DEPARTMENTAL REVIEWS WOULD BE RIGHT VEHICLE, RIGHT TIME IN THAT TURNOVER USING ENTERPRISE FLEET MANAGEMENT'S INDUSTRY NETWORK AND EXPERTISE TO MAXIMIZE VEHICLES OR TO MAXIMIZE VALUE. SO THAT GOES BACK TO THEIR STAFF FINDING THE VEHICLES, USING THEIR RESOURCES TO SELL THE VEHICLES ON THEIR AUCTION BOARDS. AND THEN WE'RE ALSO LOOKING AT RE REBRANDING VEHICLES AND THEN CONTINUED USE OF THE EQUIPMENT FUND FOR NON LIGHT DUTY DUTY VEHICLES IN THE EQUIPMENT THAT GOES WITH THOSE VEHICLES. AND THEN OTHER EQUIPMENT FOR THE CITY. AT THIS TIME, I'D LIKE TO INTRODUCE JENNIFER BERTRAM. SHE'S THE SENIOR ACCOUNT EXECUTIVE FOR ENTERPRISE THAT WE'VE BEEN WORKING WITH SINCE NOVEMBER. THANK YOU. THANK YOU MAYOR. COUNCIL, UM, MADAM CITY MANAGER, GOOD EVENING. UM, THANK YOU ALL FOR HAVING ME TODAY. I REALLY AM LOOKING FORWARD TO WALKING YOU THROUGH THIS. SO WE'RE GONNA TALK A LITTLE BIT ABOUT EACH OF THESE AREAS. UM, ONE, FROM AN ACQUISITION STANDPOINT, I THINK IT'S REALLY IMPORTANT TO NOTE RIGHT OUT THE GATES, ONE OF THE QUESTIONS I ALWAYS GET IS, YOU KNOW, WHAT DOES THAT LOOK LIKE? IF ENTERPRISE WAS TO BE HELPING US PROCURE VEHICLES, YOUR BUYING POWER AS A GOVERNMENT ENTITY STAYS THE SAME REGARDLESS OF WHETHER WE'RE HELPING YOU PROCURE THROUGH BUYBOARD STATE CONTRACT. WE HAVE THE DUE DILIGENCE ALREADY APPROVED THROUGH THE TIPS, UH, UH, RFP AND ALSO THROUGH SOURCE. WELL. SO THAT SATISFIES THE DUE DILIGENCE FROM A PARTNERSHIP STANDPOINT. WE'RE GONNA TALK A LITTLE BIT ABOUT, UM, LOGISTICS AND AFTERMARKET SOME OF THE PAIN POINTS AS IT RELATES TO PD AND UPFITTING, THOSE VEHICLES AND SOME OF THE LOGISTICS THAT WE CAN HELP, UM, FROM THAT STANDPOINT. WE'LL TALK A LITTLE BIT ABOUT OPERATING COSTS, NOT JUST WHAT HAPPENS WITH FUEL AND MAINTENANCE OVER THE LIFE AS VEHICLES AGE, UM, BUT THE OPPORTUNITY FROM A TOTAL COST OF OWNERSHIP. HOW TO DRIVE THAT SPEND DOWN. AND WE'RE GONNA SPEND MOST OF OUR TIME TODAY TALKING ABOUT RESALE. RESALE IS THE MOST IMPORTANT COMPONENT IN YOUR TOTAL COST OF OWNERSHIP. AND WHILE I THINK MOST CITIES ARE DOING A GREAT JOB TRYING TO MAKE SURE THEY'RE GETTING THE BEST BID ON THE BACKEND, UM, WHEN THEY'RE AUCTIONING THOSE VEHICLES, ENTERPRISE, OUR, OUR PARENT COMPANY, WE OWN AND OPERATE THE LARGEST FLEET IN THE WORLD. WE HAVE 2 MILLION ASSETS. SO WE ARE THE LARGEST PURCHASER OF VEHICLES IN THE WORLD. WE ARE THEIR LARGEST RESELLER OF ASSETS IN THE WORLD. AND WE'VE BEEN RUNNING THIS BLUEPRINT FOR OVER 60 YEARS. SO WE'RE SHARING OUR, UM, STRATEGIES, IF YOU WILL, WITH MUNICIPALITIES. WE WORK WITH ABOUT 250 CITIES IN TEXAS ALONE. AND SPECIFICALLY HOW THIS IS ABLE TO HELP THEM DRIVE DOWN THE OVERALL AGE OF THEIR FLEET AND BY D DEFAULT, LOWER THEIR OPERATING COSTS AND ALSO LOWER CAPITAL SPEND BY RECOUPING THE EQUITY BACK INTO THE FLEET. HERE'S SOME FOLKS LOCALLY THAT WE'RE WORKING WITH. YOU PROBABLY KNOW, UM, WE'VE BEEN WORKING WITH ALL OF THESE FOLKS FOR, FOR MANY, MANY YEARS. THEY'RE ALL VERY DIFFERENT. THEY ALL HAD DIFFERENT PHILOSOPHIES ON WHEN TO REPLACE ASSETS. SOME HAD A VER ALREADY ESTABLISHED FOR REPLACEMENTS, SOME HAD NOTHING BUILT INTO THE GENERAL FUND. UM, AND THEY WERE JUST TRYING TO GET THAT ONE PD UNIT, UM, THAT THEY REALLY NEEDED THAT YEAR. BUT ALL OF OUR CITIES ARE ALL TRYING TO DO MORE WITH LESS. HOW DO WE CUT BACK? HOW DO WE CUT COSTS? HOW CAN WE, YOU KNOW, BEST USE THESE FUNDS? AND AGAIN, FROM A COMMONALITY STANDPOINT, YOU'LL SEE HERE ON THE RIGHT HAND SIDE, THAT'S A SCREENSHOT FROM THE STATE PAGE. CITIES, COUNTIES, UNIVERSITIES, AND SCHOOL DISTRICTS IN TEXAS ON AVERAGE RUN VEHICLES FOR NINE YEARS OR LONGER. AND THE THOUGHT PROCESS USUALLY IS, WELL, ESPECIALLY FOR NON-EMERGENCY RESPONSE VEHICLES, WE DO PRETTY LOW MILEAGE. SO IF WE CAN RUN THE ASSET AS LONG AS WE CAN AND GET OUR USEFUL LIFE OUT OF IT, AGAIN, THAT'S VERY COMMON. FROM A PHILOSOPHY STANDPOINT, WE'RE, YOU KNOW, WE'RE, WE'RE, YOU KNOW, DOING OUR FIDUCIARY RESPONSIBILITY WITH THE TAXPAYER DOLLARS. UM, AND AGAIN, FROM A COMMONALITY STANDPOINT, WE SEE THAT FOR MOST CITIES, MULTIPLE DEPARTMENTS HAVE MULTIPLE BUDGETS AND PLANS WHERE JUST BY THE NATURE OF POLICE UNITS AND FIRE UNITS, THEY'RE GONNA HAVE TO BE REPLACED MORE FREQUENTLY. UM, AND WHERE WE MAY, YOU KNOW, CODE ENFORCEMENT MAY NOT HAVE ANYTHING BUILT IN FOR REPLACEMENT. AGAIN, VERY COMMON WHEN WE LOOK AT THAT KIND OF ACROSS ALL THE CITIES WE WORK WITH. AND IT'S USUALLY BECAUSE THE CAPITAL BUDGET'S, WHAT'S DICTATING THE REPLACEMENT SCHEDULE. HERE'S WHAT WE HAVE THIS YEAR, OR HERE'S WHAT WE'VE PUT INTO THE VRF. UM, AND YOU KNOW, BASED ON THE USEFUL LIFE, HERE'S WHAT WE CAN REPLACE THIS YEAR WITHIN THOSE FUNDS. VERSUS THE OPPOSITE OF THAT IS DETERMINING THE LOWEST COST OF OWNERSHIP TO REPLACE AN ASSET AND ALIGNING OUR CAPITAL BUDGET OR OUR PLAN WITH THAT. SO THIS IS JUST A A A BIG PICTURE EXAMPLE KIND OF MACRO VIEW. IF YOU LOOK AT THE TOTAL BUDGET AND YOU, IF YOU LOOKED IT ON A MICRO VIEW, VERY SIMILAR. MOST FOLKS THINK, OKAY, WELL THE CAPITAL SPEND IS THE BIGGEST PART OF THE TOTAL COST OF OWNERSHIP. 'CAUSE IT IS THE BIGGEST CHECK YOU USUALLY STROKE [00:25:01] AT ONE TIME. BUT OPERATING COSTS USUALLY MAKES UP MORE LIKE 60 TO 70% OF YOUR TOTAL SPEND, RIGHT? FUEL AND MAINTENANCE. SO WHAT HAPPENS WHEN WE HAVE A YEAR WHERE MAYBE WE NEED TO USE THE FUNDS TOWARDS A FIRE TRUCK OR, UM, A A DUMP TRUCK OR SOMETHING THAT, YOU KNOW, IS A HIGHER PRIORITY THAT YEAR, WELL THEN THE OVERALL AVERAGE AGE OF THE FLEET GOES UP BECAUSE WE'RE NOT REPLACING MAYBE SOME OF THE OTHER ASSETS THAT NEEDED TO BE REPLACED AND THEREFORE OUR OPERATING COSTS GO UP. THE ONLY WAY TO LOWER YOUR OVERALL TOTAL COST OF OWNERSHIP IS TO LOWER THE AVERAGE AGE OF YOUR FLEET. I'M GONNA SHOW YOU A QUICK EXAMPLE HERE. THIS EXAMPLE IS OF A 2024 CHEVY SILVERADO THAT COULD BE BOUGHT ON THE STATE CONTRACT THAT YEAR FOR $38,000. SO Y'ALL ARE DOING A GREAT JOB OF MAKING SURE WE'RE GETTING, YOU KNOW, THE BEST BUY POSSIBLE ON THE FRONT END. AND MOST OF OUR CITIES WERE, WE'RE DOING THE EXACT SAME THING FROM A PROCESS STANDPOINT. BUT WHAT MOST CITIES AREN'T LOOKING AT IS WHAT ARE THESE ASSETS WORTH? IF WE SOLD THEM AT THE RIGHT TIME, WE PULLED A SAMPLE SIZE. THIS IS THIRD PARTY DATA FROM MANHEIM SAMPLE SIZE OF 2020 TWOS SOLD AT AUCTION. AVERAGE ODOMETER 15,000, AVERAGE SALES PRICE WAS 35,000 FOR THAT SAMPLE SIZE. JUST BECAUSE YOU, THIS WAS YOUR TRUCK BOUGHT IT FOR 38,000, ESSENTIALLY RAN IT FOR TWO YEARS, YOU PAID 38,000 FOR. IT. DOESN'T MEAN THAT THE END USER IN THE USED CAR MARKET HAS ANY CLUE WHAT YOU PAID FOR IT. THEY'RE JUST PAYING WHAT IT'S WORTH IN THE MARKET, WHAT THE MARKET DICTATES. AND SO THIS IS WHAT ENTERPRISE RENT A CAR OUR PARENT COMPANY HAS BEEN DOING FOR 60 YEARS, AS YOU CAN IMAGINE, FROM A BUYING POWER STANDPOINT, WE'RE BUYING A HUNDRED THOUSAND SILVERADOS AT ONE TIME. WE'VE JUST FIGURED OUT HOW LONG DO WE WANNA RUN THIS ASSET UNTIL IT, IT IS THE LEAST COST OF OWNERSHIP, RIGHT? AND THEN WHEN DO WE WANNA SELL IT BACK INTO THE MARKET? IT'S JUST LIKE PLAYING THE STOCK MARKET. BUY LOW, SELL HIGH, WE ACTUALLY MAKE MORE MONEY ON THE RENTA CAR SIDE. MOST FOLKS DON'T KNOW THIS, BUT RESELLING OUR ASSETS BACK INTO THE MARKET THAN WE ACTUALLY DO RENTING THEM, THAT JUST COVERS SOME OPERATING COST. SO THAT'S ESSENTIALLY WHAT WE'RE LOOKING AT HERE. AND I'M NOT SAYING EVERY SINGLE VEHICLE IN THE FLEET WE'RE TURNING OVER IN TWO YEARS. WE NEED TO MAKE SURE WE'RE DEPRECIATING THE ASSET APPROPRIATELY. WE ARE LOOKING AT THE AFTERMARKET COSTS AND HOW THAT, WHERE THAT BREAK EVEN LINE IS FOR E FOR DEPENDING ON APPLICATION, BUT CERTAINLY WITHIN THE NON-EMERGENCY RESPONSE FLEET, WE'RE GONNA BE ABLE TO TURN THOSE VEHICLES OVER EVERY FOUR OR FIVE YEARS AND IT'S GONNA COST US LESS THAN WHAT WE'RE DOING TODAY. SO ESSENTIALLY THIS IS THE VISUALIZATION OF ALL OF THE ANALYSIS THAT WE'VE GONE THROUGH UP TO THIS POINT. SO, YOU KNOW, AS A REGULAR CONSUMER, IF YOU WERE TO BUY YOUR OWN VEHICLE, AND I THINK MOST OF YOU GUYS ARE FAMILIAR WITH THIS, THE MINUTE YOU DRIVE IT OFF THE LOT, IT'S A USED CAR , IT'S LIKE FIVE MILES AND ALL OF A SUDDEN IT TAKES A $5,000 DEPRECIATION HIT. WELL, YOU GUYS CLOSE A LOT OF THAT DEPRECIATION HIT, UM, HIT IN THE FIRST YEAR BECAUSE OF YOUR GOVERNMENT INCENTIVES. SO YOU'RE CLOSING THAT GAP IN TERMS OF DEPRECIATION. BUT WHEN YOU LOOK AT THE TOTAL COST AND WHAT THE MATH SHOWS US IS YES, YOUR OPERATING COSTS DO INCREASE OVER ITS LIFE. I THINK EVERYBODY WOULD SAY IT'S REASONABLE THAT AN OLD VEHICLE HAS MORE MAINTENANCE THAN A NEW VEHICLE. BUT IT'S WHAT YOU COULD HAVE SOLD THE ASSET FOR HAD YOU HAVE GOTTEN RID OF IT AT THE RIGHT TIME. THAT'S THE MOST IMPORTANT COMPONENT IN THE TOTAL COST. IT'S THAT ORANGE LIGHT, RIGHT, RIGHT THERE IN THE MIDDLE OF THAT CIRCLE THERE. SO BY DEFAULT, IF WE'RE REPLACING VEHICLES SOONER, WE'RE GOING TO SEE OPERATING COSTS COME DOWN. SO YOU'RE STILL GONNA USE YOUR IN-HOUSE SHOP, YOU'RE STILL GONNA CONTINUE TO USE YOUR BULK TANK FOR FUEL. WE'RE GONNA SEE THOSE DRIVE DOWN BECAUSE NOW WE'RE RUNNING A NEWER FLEET. SO FROM A FUEL DEGRADATION STANDPOINT, WE'RE GONNA SEE FUEL ECONOMY DOESN'T DEGRADATE AS MUCH, BUT ALSO WE'LL BE ABLE TO TAKE ADVANTAGE OF TECHNOLOGY ON NEW VEHICLES THAT IS AVAILABLE AS WE'RE ON A HEALTHIER VEHICLE LIFECYCLE. SO AS THERE'S A HYBRID OPTION, OR IF THERE'S A VEHICLE THAT JUST HAS BETTER TECHNOLOGY, THAT'S GONNA HELP US DRIVE THAT OPERATING COST DOWN AS WELL. SO THEN WE HAVE TO LOOK, OKAY, HOW DO WE FUND THIS LONG TERM? AND THERE ARE SOME OPTIONS. YOU COULD PAY CASH. UM, SO IN THIS SCENARIO, IF YOU WERE, YOU HAD A HUNDRED VEHICLES JUST IN BALLPARK NUMBERS AND YOU REPLACE THE ASSETS EVERY FIVE YEARS, YOU'D BE REPLACING 20 VEHICLES A YEAR. IF THE AVERAGE COST OF THE VEHICLE WAS 50,000, THEN YOU'D REPLACE OR YOU'D NEED TO BUILD IN A MILLION DOLLARS, UM, IN ORDER TO REPLACE THOSE 20 UNITS. BUT NOT JUST THIS YEAR, BUT FOLLOWING YEAR AND THE FOLLOWING YEAR AND THE FOLLOWING YEAR, RIGHT? SO THAT DOES TIE UP A LOT OF CAPITAL AND DEPRECIATING ASSETS. YOU COULD DO MORE OF A TRADITIONAL FINANCE. YOU ALL ARE ALL FAMILIAR WITH, UH, TRADITIONAL FINANCES. YOU FINANCED YOUR HOME OR YOUR CAR AT SOME POINT. UM, SO FROM A CASH FLOW STANDPOINT, YOU KNOW, 10,000 IN TERMS OF PRINCIPLE, YOU KNOW, OR 200,000 FOR THE SAME 20 UNITS, MUCH BETTER. BUT WHAT WE'RE PROPOSING IS A MARKET VALUE FINANCE. SO THE MOST OF THE CITIES ON THE, THE SCREEN THAT I SHOWED EARLIER, USING THIS CASH FLOW TOOL THAT ALLOWS US TO PAY FOR THE PORTION OF THE VEHICLE THAT WE'RE USING OVER THE TERM SO THAT WE DON'T HAVE TO OUTLAY AS MUCH OF THOSE VER FUNDS INTO A DEPRECIATING ASSET. SO SAME 20 VEHICLES, CAPITAL OUTLAY, UH, IN TERMS OF PRINCIPLE 8,100 OR A NET DIFFERENCE OF, YOU KNOW, 838,000. SO HERE'S A BETTER EXAMPLE KIND OF DRAWING THIS OUT FOR YOU. AGAIN, TRADITIONAL FINANCING, YOU PAY THE VEHICLE OFF TO ZERO WHENEVER YOU SELL THE ASSET, FOUR OR FIVE YEARS, HOWEVER LONG IT IS, LET'S SAY IT'S WORTH 20,000 IN A TRADITIONAL FINANCE, YOU'RE PUTTING 20 GRAND IN THE GLOVE BOX [00:30:01] AND DRIVING AROUND FOR FOUR OR FIVE YEARS. AND THEN WHEN YOU FINALLY SELL IT, YOU GET YOUR EQUITY BACK. UM, AND AGAIN, THAT'S, THAT'S FINE. IT'S BETTER THAN PAYING CASH FOR AN ASSET IN TERMS OF, YOU KNOW, IT BEING DEPRECIATING IN CASH FLOW. BUT IF IT'S, WE KNOW IT'S WORTH 20,000 WHEN WE SELL IT, WHY DON'T WE JUST FINANCE IT DOWN TO 10,000? SO THE MARKET VALUE FINANCE ALSO CALLED AN OPEN END LEASE, IS JUST A CASH FLOW TOOL. IT ALLOWS US TO FINANCE THE PORTION OF THE VEHICLE WE'RE GOING TO USE OVER THE TERM INSTEAD OF PAYING IT OFF ALL THE WAY TO ZERO AND TYING UP CAPITAL AND DEPRECIATING ASSET. AN OPEN END LEASE IS NOT A DEALERSHIP LEASE, THAT IS A CLOSED END LEASE. SO I'M, I'M SURE ALL OF YOU KIND OF CRINGED WHEN YOU HEARD THE WORD LEASE. UM, AS I DID WHEN I WAS LEARNING ABOUT LEASING. UM, CLOSED END LEASE HAVE MILEAGE PENALTIES AND WEAR AND TEAR PENALTIES. WE DO NOT RECOMMEND THAT I DON'T HAVE ANY MUNICIPALITIES USING THAT TYPE OF LEASE. UM, AND MOST IMPORTANTLY BECAUSE WHEN YOU TURN THAT VEHICLE IN AT THE END, YOU DON'T BENEFIT FROM THE EQUITY, RIGHT? IT'S LIKE A LONG-TERM RENTAL. REALLY. THE OPEN-END LEASE TASTES, FEELS, AND SMELLS EXACTLY LIKE A FINANCE. THE ONLY DIFFERENCE IS INSTEAD OF FINANCING IT TO ZERO, TYING UP EXTRA CAPITAL, WE'RE JUST FINANCING IT TO A VALUE THAT'S CONSERVATIVE BELOW WHAT WE THINK IT'S GONNA SELL FOR. 'CAUSE WE WANT YOU TO HAVE EQUITY. SO ESSENTIALLY IN THIS SCENARIO HERE, IF WE THINK IT'S GONNA SELL FOR 20, WE FINANCE IT DOWN TO 10. SO IE THE 40,000 INSTEAD OF THE FULL 50. SO THEREFORE OUR MONTHLY PAYMENT WOULD BE LESS, OUR ANNUAL OUTLAY WOULD BE LESS WHEN IT SELLS FOR 20, WHATEVER EQUITY YOU HAVE ABOVE THAT PAYOFF IS YOURS. SO WE CAN CUT YOU A CHECK BACK FOR IT, ROLL IT INTO BACK INTO THE, THE VER OR HOWEVER YOU WANT IT, YOU KNOW, INVOICE CREDIT, CHECK HOWEVER YOU WANT IT. THIS IS COMPLETELY FLEXIBLE. YOU CAN, YOU CAN SELL THE ASSET ANYTIME YOU MAINTAIN ALL THE EQUITY, NO MILEAGE PENALTIES, NOWHERE AND TEAR PENALTIES. THIS IS JUST A CASHFLOW TOOL. SO INSTEAD OF TYING UP EXTRA CAPITAL, WE CAN USE THOSE FUNDS TOWARDS OTHER REPLACEMENT ASSETS, WHICH ALLOWS US TO DRIVE THAT COST DOWN. 'CAUSE NOW WE'RE DRIVING OPERATING COSTS DOWN AND NOW WE'RE MAXIMIZING THE EQUITY BECAUSE WE'RE SELLING THE ASSET AT THE RIGHT TIME. SO THIS, ESSENTIALLY WE'RE GOING FROM PUTTING THE MONEY IN THE VF BASED ON ITS USEFUL LIFE X YOU KNOW, FOR EXAMPLE, 10 YEARS LONG, WHICH WE'RE PROBABLY NOT PUTTING AS MUCH INTO THE VRF IN THAT SCENARIO. SO THEREFORE, WHEN WE NEEDED TO REPLACE THE ASSET, IF IT WAS THE OPTIMUM TIME WAS AT FOUR OR FIVE YEARS, WE DIDN'T HAVE THE FUNDS TO SUSTAIN THAT LONG TERM. SO USING THIS FUNDING MECHANISM IS GONNA ALLOW US TO USE THOSE SAME VER FUNDS AND STRETCH THAT CAPITAL EVEN FURTHER. AND, UM, WE WILL DEFINITELY GIVE MORE INFORMATION ON THAT HERE IN A FEW MINUTES. BUT WE'RE NOT JUST HERE FOR A ONE-TIME RECOMMENDATIONS. WE'VE DONE ALL THE ANALYTICS WITH STAFF UP TO THIS POINT. WE'RE GONNA BE HERE WORKING WITH YOU ANNUALLY. UM, I'M PART OF THE TEAM. I'M THE ACCOUNT EXECUTIVE. MY JOB IS TO DO ALL THE ANALYTICS ON THE FRONT END AND WORK HAND IN HAND WITH THE TEAM TO ONBOARD AS WE WOULD WORK TOWARDS GETTING THOSE REPLACEMENTS, UM, IN SERVICE AND DISPOSING OF THE OLD ASSETS AS WELL. THE CLIENT STRATEGY MANAGER IS GONNA BE MEETING WITH STAFF SEVERAL TIMES A YEAR. ANNUAL CLIENT REVIEW, WHICH IS ESSENTIALLY JUST LIKE A MEETING WITH YOUR FINANCIAL PLANNER, YEAR OVER YEAR PERFORMANCE ON ALL OF THE AREAS THAT WE'RE MANAGING. AND THEY'RE SUPPORTED BY, NOT TO GET TOO GRANULAR HERE, BUT IN A, A DAY-TO-DAY ADMINISTRATIVE TEAM AS WELL TO HELP, UM, ELIMINATE AS MUCH OF THE AD UH, ADMINISTRATIVE BURDEN ON YOUR, YOUR STAFF TODAY. AND AS YOU CAN IMAGINE, WE HAVE AN ENTIRE TEAM THAT'S JUST DESIGNATED TO ACQUISITIONS AT CORPORATE. AND WE, YOU KNOW, AS MANY VEHICLES AS WE'RE BUYING, WE'RE HERE TO SUPPORT YOU AND WE KNOW, UM, WE HAVE ALL THE, THE SUPPORT ON THE BACKGROUND. SO WE TALKED A LOT ABOUT SELLING THE ASSETS AT THE RIGHT TIME. SELLING THE ASSET TO THE RIGHT BUYER IS EQUALLY AS IMPORTANT. WE REALIZED A LONG TIME AGO, THAT SELLING VEHICLES AT AUCTION PROBABLY WASN'T YIELDING THE HIGHEST RATE OF RETURN. SO WE CREATED OUR OWN INTERNAL DIVISION CALLED OUR REMARKETING TEAM. AND ALL THEY DO IS HAND SELL OUR VEHICLES. SO THEY DO A BLIND BID PO UH, PROCESS, UM, AND PIN ALL OF THESE BUYERS AGAINST EACH OTHER. SO, YOU KNOW, FRANCHISE DEALERS AND NOTE LOTS AND INDEPENDENT WHOLESALERS. AND WE DO RUN OUR OWN LANE AT THE AUCTION AS WELL. I MEAN, THE 25-YEAR-OLD VEHICLE'S PROBABLY GONNA SELL WHAT IT SELLS FOR NO MATTER WHERE YOU SELL IT, RIGHT? UM, BUT WHEN WE'RE SELLING VEHICLES AT THE RIGHT TIME, IT MAKES A BIG DIFFERENCE TO SELL BACK DIRECT TO DEALER ABOVE AUCTION. AND ON AVERAGE, JUST TO GIVE YOU, GIVE YOU A BASELINE COMMERCIAL VALUE INDEX OR THAT BLACK BOOK AVERAGE, WE'RE SELLING ABOVE 10%. SO ON A UH, $20,000 TRUCK THAT WE'RE SELLING BACK INTO THE MARKET, THAT'S AN ADDITIONAL TWO GRAND BACK TO THE CITY IN TERMS OF OUR ABILITY TO RESELL THESE ASSETS. AND THIS IS JUST ANOTHER EXAMPLE OF THAT. WE EVEN SELL ASSETS BACK THROUGH OUR RETAIL DIVISIONS, THROUGH OUR CAR SALES. SO WE'RE LOOKING AT EACH AVENUE, WHAT'S GONNA YIELD US THE HIGHEST RATE OF RETURN. UM, THIS HAS BEEN INCREDIBLY SUCCESSFUL FOR ALL THE CITIES THAT WE'RE WORKING WITH. WE HANDLE THE WHOLE PROCESS. WE DEREG TO IDENTIFY, GET THAT THING SOLD AND NET YOU THE GAINS BACK SO YOUR, YOUR TEAM ISN'T HAVING TO MESS WITH THAT. UM, AND THEN AT THE END OF THE DAY, AGAIN, WE HAVE THE RESULTS TO PROVE YEAR OVER YEAR. SO THE FORMAT'S MESSED UP HERE. UM, SO JUST TO HIGHLIGHT WHAT THE, THE ANALYSIS ESSENTIALLY THAT WE'VE GONE THROUGH AND, YOU KNOW, THE CURRENT SITUATION AND THE RESULTS. SO TODAY, 20% OF THE FLEET IS OLDER THAN 10 YEARS. UM, BUT 72% OF THE FLEET [00:35:01] IS OVER FIVE YEARS OF AGE. SO WE'RE GONNA HAVE QUITE A FEW VEHICLES COMING DUE THAT ARE GONNA START AGING AT THE SAME TIME. UM, OUR AVERAGE LIFE CYCLES RIGHT AROUND NINE AND A HALF YEARS. UM, WHICH MEANS THAT BASED ON THAT PURCHASE HISTORY, IF YOU KEEP PURCHASING AT THE SAME RATE, IT WOULD TAKE YOU NINE AND A HALF AND IT'S ALMOST 13 VEHICLES, I THINK A YEAR THAT YOU'RE AVERAGING TODAY. BUT IT WOULD TAKE YOU NINE AND A HALF YEARS TO TURN OVER THE SAME FLEET IF YOU KEEP DOING WHAT YOU'RE DOING. UM, MAINTENANCE AND FUEL OBVIOUSLY IS, UM, HIGHER ON THE FLEET TODAY, AND EQUITY IS PRETTY MINIMAL DUE TO THE FACT THAT WE'RE SELLING THEM PAST NINE YEARS LONG. UM, SO WHAT WE WANT TO ACCOMPLISH HERE AND WHAT WE'VE BEEN WORKING THROUGH THROUGH OUR ANALYSIS IS IDENTIFYING A HEALTHY VEHICLE LIFE CYCLE THAT MAXIMIZES THAT EQUITY. WE WANNA SHORTEN THE LIFE CYCLE FROM 10 YEARS TO FIVE, AND IN DOING THAT, WE'RE GOING TO BE ABLE TO CREATE A S SUSTAINABLE PLAN LONG TERM. THAT'S, WE KNOW THAT IT'S GONNA BE A SAVINGS, BUT IT'S COST NEUTRAL COMPARED TO WHAT YOU'RE DOING TODAY. REDUCE FUEL COSTS BY A MINIMAL OF 17%, REDUCE YOUR REPAIR, UM, EXPENSE. UM, FROM A MAINTENANCE STANDPOINT BY 23%, WE'RE GONNA LEVERAGE $500,000 IN CAPITAL IN THE ASSETS THAT WE'RE REPLACING IN THAT FIRST YEAR. UM, AND LE LEVERAGING THAT OPEN AND LEASE IS GONNA ALLOW US TO STRETCH THOSE VER DOLLARS EVEN FURTHER AND GET ON A HEALTHY VEHICLE LIFECYCLE AND THEN SUSTAIN IT FROM THERE. AND THEN WE DISCUSSED ALREADY ABOUT OUR ABILITY TO RESELL ASSETS. ANY QUESTIONS ON THAT? ALL RIGHT, ANY QUESTIONS FROM COUNCIL? I GOT A LOT OF QUESTIONS TO THE END. ALRIGHT. UH, IS THIS, IS THIS PART? I'M SORRY. OH, THERE'S MORE. OH, THERE'S CHUCK, I DIDN'T SEE YOU READY. OKAY. YEAH, SO I, I GUESS AFTER THE END OF THE CONVERSATION, UH, PRESENTATION, WE'LL BRING YOU UP FOR QUESTIONS. SO COUNCILWOMAN. ALRIGHT, GOOD EVENING, MR. MAYOR, CITY COUNCIL. NICE TO BE HERE THIS EVENING. GOOD EVENING, SIR. UH, I'M GONNA TALK A LITTLE BIT ABOUT THE EQUIPMENT FUND. AND AS YOU KNOW, THE EQUIPMENT FUND HAS BEEN WITH THE CITY FOR, I GUESS IT'S GOING ON THREE DECADES. MR. SIMS SET IT UP WITH THE FINANCE DIRECTOR BACK MANY, MANY, MANY YEARS AGO, AND IT HAS SERVED THE CITY VERY, VERY WELL. UH, IT CURRENTLY, UH, IT WAS ESTABLISHED TO CENTRALIZE PURCHASES AND REPLACEMENTS OF OUR EQUIPMENT. IT ALSO REDUCED BUDGET VOLATILITY AND IT ALLOWED THE DEPARTMENTS TO BE ABLE TO PAY FOR ASSETS OVER THE USEFUL LIFE OF THOSE ASSETS. CURRENTLY WHAT WE HAVE IN THE EQUIPMENT FUND ARE LIGHT DUTY VEHICLES THAT WE'VE BEEN DISCUSSING TONIGHT. WE ALSO PURCHASE HEAVY DUTY VEHICLES. WE PURCHASE, UH, IT EQUIPMENT, WE PURCHASE THE UPFITTING FOR VEHICLES AS WELL AS, UH, ALSO OTHER DEPARTMENTAL CAPITALIZED EQUIPMENT LIKE SAFETY EQUIPMENT, DEFIBRILLATORS, UH, AND THINGS LIKE THAT FOR THE FIRE DEPARTMENT. UH, IN THE FUTURE, IT IS INTENDED THAT THE EQUIPMENT FUND WILL CONTINUE TO DO EXACTLY WHAT IT'S DOING NOW WITH EVERYTHING EXCEPT FOR THE LIGHT DUTY VEHICLES. THAT'S THE ONLY THING THAT'S BEING REMOVED FROM THE, UH, EQUIPMENT FUND IN THE FUTURE. SO, UM, AND WHAT I, WHAT I'LL SAY ABOUT THE EQUIPMENT FUND IS, IS I'VE LOOKED AT THE MODELS HERE. UH, I TOOK JENNIFER'S MODEL, SHE SENT IT TO ME, I LAID IT UP AGAINST WHAT WE CURRENTLY DO IN THE EQUIPMENT FUND AND I LOOKED AT IT FOR THE NEXT THREE YEARS IN THE GENERAL FUND. AND WHAT I FOUND WAS THAT FOR ALL THREE OF THOSE YEARS, IT IS PRETTY MUCH COST NEUTRAL. WE'RE ACTUALLY ACTUALLY MAKING A LITTLE BIT OF MONEY ACTUALLY. UH, SO FOR INSTANCE, WE PER CURRENTLY WOULD PURCHASE ABOUT 12 TO 13 VEHICLES EVERY YEAR IN THE EQUIPMENT FUND. JENNIFER'S PROPOSAL BRINGS US INTO 51 VEHICLES IN THE FIRST YEAR. OKAY? NOW HAVING SAID THAT, IN THE GENERAL FUND, WHEN WE PURCHASE 13 VEHICLES WITH THE MAINTENANCE THAT WE HAVE AND THE FUEL THAT WE PURCHASE, IT'S GONNA COST A LITTLE OVER A MILLION DOLLARS FOR THOSE 12 VEHICLES. AND THROUGH THE PROPOSAL AND SELLING ALL OF THE 51 VEHICLES THAT WE CURRENTLY HAVE, THAT WOULD BE INTRODUCED INTO THE NEW MODEL, THAT MODEL WOULD ONLY COST NET ABOUT $810,000. SO WE'RE GONNA NET THE FIRST YEAR ABOUT $192,000 THAT WE CAN PUT INTO THE GENERAL FUND OR THE EQUIPMENT FUND ON THE SECOND YEAR. THEN WE WILL BE PURCHASING ANOTHER 13 VEHICLES. AND SO THAT'LL GIVE US 26 THAT WE'RE FINANCING THROUGH THE EQUIPMENT FUND IN GENERAL FUNDS. OKAY? HAVING DONE THAT, THAT WAS GONNA COST US IN THE GENERAL FUND WITH THE FIXED COST OF THE MAINTENANCE AND THE FUEL, WHICH ARE FIXED. THE TOTAL COST WOULD BE 1,000,155 THROUGH THIS MODEL. ON THE SECOND YEAR, WE'RE ONLY PAYING 1,000,068. SO WE'RE NETTING ACTUALLY $86,000 TO THE GENERAL FUND FOR THE SECOND YEAR. IN THE THIRD YEAR WE'RE ADDING ANOTHER 13 VEHICLES. WE'LL BE ANOTHER $143,000 A YEAR FOR THOSE ADDITIONAL 13 VEHICLES. THE MAINTENANCE COSTS ARE FIXED, FUEL COSTS ARE FIXED. UH, THE TOTAL COST OF GENERAL FUND IS 1,000,300 12,000 AND THE ENTERPRISE FUND IS 1,000,353. SO IT'S A $41,000, UH, A LITTLE BIT OVER $41,000 OVER. SO IT'S PRETTY COST NEUTRAL FOR THE THREE YEARS. AND I ALSO WANNA SAY ABOUT THE EQUIPMENT FUND, AGAIN, IT'S BEEN AROUND FOR MANY, MANY YEARS. I DON'T KNOW HOW MANY TIMES IT'S HAD CASH TRANSFUSIONS PUT INTO IT. MAYBE NOT EVER. I DON'T, I'M NOT SURE. BUT [00:40:01] IN THE BALANCE, THE FUND, THE CASH BALANCE THAT WE HAD IN 2018 WAS $1,184,000. AT THE END OF 25 WE HAD 3,611,000. SO WE CURRENTLY LEASE THE VEHICLES TO THE DEPARTMENTS WE CHARGE. WE STARTED CHARGING THIS YEAR, UH, THREE AND A HALF PERCENT, WHICH IS PRETTY EQUIVALENT TO THE PRICE INDEX CPI PRICE INDEX. SO IT'S KEEPING UP THERE. WE ALSO BASICALLY DID A TRA A CASH TRANSFUSION LAST YEAR WHEN WE, UH, DID TAX NOTES FOR VEHICLES. SO WE BOUGHT ALL THOSE VEHICLES, WE DIDN'T PURCHASE 'EM OUTTA THE EQUIPMENT FUND. THAT REDUCED PRESSURE ON THE GENERAL FUND AND IT ALSO REDUCED THE PRESSURE IN THE EQUIPMENT FUND BY BASICALLY NETTING REVENUE OF ABOUT $600,000 INTO NEW EQUIPMENT FUND. SO THE EQUIPMENT FUND IS VERY, VERY SOLVENT AND I DON'T THINK IT'S GONNA HAVE ANY PROBLEMS CONTINUING WITH, UH, EVERYTHING EXCEPT LIGHT DUTY VEHICLES INTO THE FUTURE. UH, ONE LAST THING I DID CHECK AGAIN IS WHEN YOU LOOK AT THE LEASING OF THE VEHICLES, I WENT AND CHECKED TO MAKE SURE WE WERE COMPARABLE PER VEHICLE. AND SO WHEN YOU LOOK AT THE LEASE COSTS THAT WE'RE CURRENTLY DOING ON THE EQUIPMENT FUND, IT'S ABOUT $892 PER MONTH PER VEHICLE. FOR THE ENTERPRISE FUND OR THE ENTERPRISE MODEL, IT'S ABOUT $954. VERY, VERY COMPARABLE. SO WHEN YOU CONSIDER THE MAINTENANCE COSTS WILL GO DOWN, FUEL COSTS GO DOWN, WE'RE ACTUALLY AHEAD WITH THE ENTERPRISE MODEL. SO WITH THAT, THAT IS OUR PRESENTATION AND WE WILL BE GLAD TO ENTERTAIN ANY QUESTIONS THAT YOU MAY HAVE. THANK YOU FOR THE PRESENTATION. FOR THE RECORD, UM, JUST LIKE TO NOTE THAT, UH, ASSISTANT PUBLIC WORKS DIRECTOR DAVE FORNELL, UH, GAVE THE FIRST PRESENTATION. UH, COUNSEL, ARE THERE ANY QUESTIONS, UM, THAT WE CAN ASK FOR ANYONE? COUNCILWOMAN INE YOU HAVE THE FLOOR. THANK YOU MAYOR. UH, THANKS FOR THAT ADDITIONAL THANKS FOR THE PRESENTATIONS. FIRST OFF, IT WAS, IT WAS, UH, VERY INFORMATIVE. UM, AND CHUCK, THANK YOU FOR THE ADDITIONAL INFORMATION THAT CUT DOWN, UH, AT LEAST THREE OF MY QUESTIONS, . SO, UM, SO I WANT TO UNDERSTAND, UM, I BELIEVE I UNDERSTAND, YOU KNOW, UH, REGARDING USEFUL LIFE AND WHAT THAT MEANS, BUT WHO DECIDES WHAT THE USEFUL LIFE IS? IS THAT SOMETHING THAT'S DECIDED TOGETHER IN ADVANCE OR IS THAT JUST A PART OF THE MODEL THAT'S BUILT IN BASED ON THE VEHICLES? HOW IS THAT DECIDED? YEAH, TYPICALLY IN THE ACCOUNTING WORLD, IT'S, IT'S KIND OF A, THEY, THEY PUT, UH, DESCRIPTIONS OUT THERE FOR VEHICLES AND HOW YOU USE THEM. AND SO THAT KIND OF DICTATES HOW IT IS AND IT'S KIND OF A STANDARD THROUGH THE INDUSTRY OF, OF YOUR, HOW YOU'RE GONNA USE THEM LIKE A FIRE ENGINE. FOR US, IT'S GONNA BE A FIRE ENGINE FOR ALL CITIES. WE'RE GONNA USE THOSE FOR MANY, MANY YEARS. AMBULANCES ARE ABOUT 10 YEARS. SO LIGHT DUTY VEHICLES USUALLY FOLLOW AROUND SEVEN, FIVE TO SEVEN YEARS IS USUALLY THE TYPICAL LIFE. UH, THE ONLY DIFFERENCE TO THAT WOULD BE POLICE VEHICLES, WHICH ARE RUN VERY, YOU KNOW, HARD. THEY'RE, THEY'RE USED 24 HOURS A DAY ALMOST. SO THOSE, WE ONLY DO FOUR YEARS. SO IT KIND OF DEPENDS ON THE USE OF THE VEHICLE, BUT IT IS KIND OF A MORE OF A STANDARD PRACTICE AS WELL. OKAY, THANK YOU. THAT DICTATE THAT. AND UM, THEN SIMILARLY, WHAT IS THE, WHO DECIDES THE, THE FAIR MARKET? I MEAN THE MARKET IS, IS THE MARKET, BUT LIKE HOW DO WE KNOW THAT GOING IN AND LIKE WHO MAY LIKE WHO, WHO DECIDES THAT? LIKE HOW AND HOW WOULD WE PLAN FOR THAT BUDGET WISE? UM, YOU KNOW, AS, AS THE CYCLE ROLLS, HOW DO WE PLAN FOR THAT BUDGET WISE OF WHAT, WHAT WE MIGHT RECEIVE? IF IT'S OKAY, I'LL, I'LL, I CAN SPEAK TO THAT. YEAH. SO, UM, WE ARE MEETING WITH STAFF, UM, IN THE EARLY PARTS OF YOUR BUDGET SEASON, IDENTIFYING WHICH VEHICLES NEED TO BE REPLACED BASED ON MARKET CONDITION. SO WE'LL LOOK AT WHAT THOSE VEHICLES ARE WORTH AND WHY WE'RE RECOMMENDING THE NET PRESENT VALUE OF REPLACING THE ASSET THIS YEAR VERSUS IF WE HELD IT FOR A YEAR OR TWO. SO IF THE MARKET ADJUSTS AND WE NEEDED TO HOLD ON, HOLD ONTO AN ASSET A LITTLE LONGER 'CAUSE IT'S MORE COST EFFECTIVE, WE HAVE THAT OPTION. SO WE'LL BE MEETING ANNUALLY, MAKING THOSE RECOMMENDATIONS AND THEN WE'LL BE GIVING YOU CONSERVATIVE ESTIMATES ON WHAT THE MARKET DICTATES THOSE VEHICLES ARE WORTH. UM, SIGHT UNSEEN, WE SET A FLOOR IN TERMS OF WHEN WE GO TO SELL THE ASSET THAT IT SHOULDN'T SELL FOR ANY LESS THAN THIS. AND OUR FOLKS ARE VERY COMPETITIVE. THEY'RE ON A PERFORMANCE REPORT TRYING TO SELL THESE VEHICLES FOR MORE THAN THEIR PEER. YEAH. UM, AND SO IF FOR SOME REASON IT'S NOT BRINGING IT BECAUSE IT'S THE VEHICLE'S NOT RUNNING OR SOMETHING LIKE THAT, WE'LL COMMUNICATE THAT WITH STAFF IN ADVANCE. OKAY. THIS IS VERY HELPFUL BECAUSE MY, MY THOUGHT AS YOU WERE TALKING IS LIKE, IT'S A, IT'S A GREAT PROGRAM AND I CERTAINLY SEE THE BENEFITS OF IT, BUT IF THIS IS LIKE WE TURN THIS ALL OVER TO YOU AND IT'S YOUR, YOU KNOW, KNOW, IT'S YOUR, I I'M GLAD TO SEE THAT THERE IS SOME COLLABORATION ALONG THE WAY AND, AND CHECK-INS AND DECISIONS THAT YOU, YOU KNOW, WE'D BE INCLUDED ON. SO, UH, I THINK THAT'S IT FOR ME. TIM PRO, TIM GLOVER. THANK YOU MAYOR. ALSO GREAT PRESENTATION. VERY EYEOPENING. I JUST HAD ONE QUICK QUESTION. SINCE WE'RE LEASING DUTY SPECIFIC VEHICLES, RETROFITTING A FORD EXPLORER FOR THE POLICE [00:45:01] DEPARTMENT WHO COVERS THAT COST, IS THAT ALREADY, ARE WE LEASING A PREFAB POLICE VEHICLE WHERE WE JUST PUT THE STICKERS ON? OR DO WE GET THE FOURTH EXPLORER AND THEN WE COVER THE COST OF PUTTING IN WINDSHIELDS AND GUN RACKS? AND SO HOW WE HAVE BUILT THIS OUT AND WHAT MOST OF OUR CITIES DO, WE WOULD INCLUDE THE COST OF THE UPFIT GENERALLY MAKES SENSE TO PUT SOME MONEY DOWN ON THE UPFIT, THE AFTERMARKET DEPRECIATES IN VALUE FASTER THAN THE VEHICLE DOES. BUT ALL OF THAT WAS CONSIDERED IN OUR CASH FLOW ANALYSIS. SO, UM, TO ANSWER YOUR QUESTION KIND OF MORE PLAINLY, I THINK IT'S, IT, IT, IT IS INCLUDED, WE WOULD HELP GET THAT VEHICLE DELIVERED TO THE UPFITTER, BUT THE POLICE DEPARTMENT, WE DON'T TAKE OVER THE MANAGEMENT OF THAT PART 'CAUSE THE POLICE DEPARTMENT WANTS TO STILL BE HANDS ON WITH THAT PIECE OF IT. BUT WE'LL GET THE VEHICLE DELIVERED AND THEN HELP PAY FOR IT. ALRIGHT, THANK YOU. ALRIGHT, ANY OTHER QUESTIONS FOR COUNCIL? COUNCILMAN SIMS? YEAH, THANK YOU MAYOR. SO JUST TO, UM, I GOT A FEW QUESTIONS AND I REALLY APPRECIATE YOU ALL. UM, BRINGING THIS, I LIKE CONSTANTLY EXPLORE AND BETTER WAYS TO DO THINGS. I'M GONNA, I NEED SOME ADDITIONAL INFORMATION FOR ME TO SEE IF HOW THIS ALL FITS TOGETHER. SO THE CITY PURCHASES CURRENTLY THE VEHICLES THROUGH THE EQUIPMENT FUND AND THEN WE CHARGE THE DEPARTMENT A FEE ON, YOU KNOW, AND WHAT IS THAT CURRENT FEE RIGHT NOW? YOU SAID THREE AND A HALF PERCENT? YES, THE CURRENT FEE CURRENTLY IN 26, WE JUST UPPED IT THIS YEAR. TWO, 3.5% OBVIOUSLY WE WERE, WE WERE DOING ABOUT 2% PRIOR TO THAT. AND YOU KNOW, WITH THE CPI BEING EIGHT, 9% THE PAST YEARS THAT THAT WASN'T KEEPING UP AT THE, THE COST. SO THERE'S, THE CITY HAS BEEN SUBSIDIZING BECAUSE IF WE WENT OUT, THERE'S NOWHERE IN THE WORLD THEY COULD GET ANY KIND OF A FINANCING FOR TWO TO 3% RIGHT NOW. I DON'T KNOW WHAT A, YEAH, I, I DON'T KNOW. YEAH. SO THERE'S BEEN SOME SORT OF A SUB SEDATION, THE LOWERING OF THE COST THROUGH, UH, TO THE DEPARTMENTS BECAUSE THE CURRENT MARKET RATE FOR, UH, LEASING OR WHATEVER IS A LOT HIGHER. IS THAT CORRECT? CORRECT, YES. SO, AND I DON'T KNOW, I DON'T KNOW IF, I DON'T KNOW THE INTERNAL RATE THAT ENTERPRISE CHARGES, BUT I'M PRETTY CERTAIN IT'S A LOT HIGHER THAN, THAN WHAT WE'RE CHARGING. YES. DO YOU HAVE THE INTEREST RATES? YEAH, SO THE INTEREST IS BASED ON THE THREE YEAR T BILL PLUS 350 BASIS POINTS AND THAT'S EQUAL IN TIPS AND, UH, THE SOURCE WALL, RFP. SO, UM, YOU KNOW, WHEN WE LOOK AT THE TOTAL COST OF OWNERSHIP, YOU KNOW, CERTAINLY WE'RE A FOR-PROFIT BUSINESS. UM, YOU KNOW, WE MAKE A LITTLE MONEY FROM THE FACTORY WHENEVER WE, YOU KNOW, PROCURE VEHICLES. JUST WHAT'S THE FIGURE? I'M SORRY, YOU'RE, IF YOU CAN SHORTEN IT 'CAUSE WE GOT SHORTEN. SO WHAT'S THAT, DO YOU KNOW THAT AMOUNT? I MEAN, IF IT'S, UH, BASED ON THE THREE YEAR T BILL PLUS 350 BASIS POINTS AND, AND CURRENTLY WHAT DO YOU KNOW, WHAT'S THAT NUMBER? UH, TODAY, I DON'T KNOW WHAT IT WAS TODAY, BUT IT'S SOMEWHERE AROUND 7%. 7%. AND MY QUESTION WAS, IF, IF THE CITY DID SOMETHING SIMILAR, HOW MUCH WOULD WE GENERATE AS FAR AS INCOME? AND I'M, I'M GOING SOMEWHERE WITH THIS. SO LET ME, SO YOU HAVE THE 13 VEHICLES AND THERE'S A COST, A LEASE COST EVERY ANNUALLY AND YOU'VE BUDGETED THAT, CORRECT? YOU WHAT'S THAT NUMBER FOR THOSE 13TH? DO YOU KNOW IT? UH, YES, I HAVE THAT. IT'S $143,000. AND SO HOW MUCH IS GENERATED TO THE BACK TO THE EQUIPMENT FUND, UH, ANNUALLY? SO THAT WAS, THAT WAS BASED ON $693,000 WAS THE CASH, CASH OUTLAY OF THE VEHICLES. AND THAT WITH THAT PERCENT, THREE AND A HALF PERCENT, WE WERE CHARGING $718,000. SO IT'S ABOUT 18 PLUS SEVEN, 25,000, $25,000 GEN. SO IF IT WAS CLOSER TO MARKET RATE AS AS ENTERPRISE, THAT NUMBER MIGHT DOUBLE. UH, IT WOULD BE, IF IT WAS CLOSER TO ENTERPRISE, IT'D BE ANOTHER $25,000 ON TOP SEVEN. OKAY. THAT'S, THAT'S WHAT I'M TRYING TO, ALL THIS TO ME HAS TO BE FACTORED IN AS TO WHAT ARE WE REALLY SAVING? 'CAUSE WE'RE, WE'RE SAVING THE CITY MONEY ALREADY. AND I DON'T KNOW IF THAT'S BEEN FACTORED INTO THIS. 'CAUSE THE RATE THAT WE'RE CHARGING IN OUR DEPARTMENTS IS SUBSTANTIALLY LOWER THAN WHAT ENTERPRISE WOULD CHARGE. SO THERE'S SOME OTHER SAVINGS AND I DON'T KNOW IF THAT WAS FACTORED IN. OKAY. A COUPLE OTHER QUESTIONS. UM, HOW MANY YEARS, UH, ON A STANDARD VEHICLE IS THE LEASE CALCULATED? I MEAN, I'VE HEARD DIFFERENT THINGS. IT'S FIVE YEARS. FIVE YEARS. OKAY. SO, AND WE'RE KEEPING THOSE STANDARD YEAR VEHICLES FOR HOW LONG? UH, OUR AVERAGE IS ABOUT 9.6 RIGHT NOW. SO, SO, UM, SO FOR FOUR, FOR ANOTHER 4.6 YEARS, THAT VEHICLE HAS BEEN PAID FOR. [00:50:02] AND SO I DON'T KNOW IF THAT WAS FACTORED INTO THAT. 'CAUSE YOU'RE SAVING THE, AN THE ANNUAL COST OF NOT HAVING TO PAY FOR THOSE LEASES. YOU'RE, YOU'RE SAVING THAT 'CAUSE YOU'VE ALREADY PAID FOR IT AND YOU'RE KEEPING IT. AND I DIDN'T KNOW THAT THAT AMOUNT, THAT ANNUAL SAVINGS WAS FACTORED INTO THE COST SAVINGS. WELL THE, IT, IT KIND OF IS, BUT YOU ALSO HAVE TO TAKE INTO ACCOUNT WHEN WE SELL THAT VEHICLE AT 9.6 YEARS, WE'RE ONLY GETTING ABOUT 57,000 IN EQUITY. I, I, I KNOW THAT. BUT THEN THERE'S THE ANNUAL SAVINGS OF WHAT YOU'RE NOT HAVING TO PAY NEEDS TO BE BROUGHT INTO THAT. THERE'S TWO PIECES, THE LOWER AMOUNT YOU'RE GETTING ON THE SALE OF IT, BUT THE FACT THAT YOU DIDN'T HAVE AN EXPENDITURE FOR YEAR FI OR YEAR SIX, YEAR SEVEN, YEAR EIGHT, YEAR NINE, I DON'T KNOW IF THAT WAS FACTORED INTO THE EQUATION. OKAY. I'M, I'M TRYING TO GET TO MY QUESTIONS. UM, SO, UM, THE STANDARD VEHICLES WERE KEEPING THE 9.6 VEHICLE, 'CAUSE I, I SAW WE GOT 162, BUT ONLY 122. ARE THOSE STANDARD VEHICLES? THE STANDARD VEHICLES WE KEEP IN NINE YEARS? YES, SIR. OKAY. ALRIGHT. UM, THAT, UH, AND THERE WAS A CHART THAT, UH, YOU PROVIDED THAT CIRCLED WHEN THE, EVERYTHING SORT OF CAME TOGETHER, BUT I DIDN'T SEE A YEAR THERE. CAN YOU PULL UP THAT CHART SO THAT KEEP GOING BACK POINT IS GONNA BE VARIABLE BASED ON THE ASSET KEEP YEAH, HERE. SO IT SAYS TIME, BUT I DON'T SEE A YEAR. I DON'T, IT'S GONNA BE BASED ON THE MARKET CONDITION. OKAY. BUT IN ORDER TO, SO IN THE ANALYSIS THAT WE'VE RUN, WE'RE BASING IT, YOU HAVE TO HAVE A BASELINE, YOU HAVE TO HAVE SOMEWHERE TO START. RIGHT? WE'RE GONNA HAVE TO EVALUATE FUTURE YEARS. BUT BASED ON HOW WE HAVE PHASED INTO THE PROGRAM, IT'S OVER A FIVE YEAR PERIOD. I, FIVE YEARS. OKAY. THAT, THAT'S WHAT I WAS TRYING TO GET TO. WELL, I'M OKAY WITH THIS, BUT I, I THINK THERE'S SOME THINGS, INFORMATION THAT MIGHT HAVE BEEN FACTORED INTO THE, THAT THE BENEFITS, THE FACT THAT YEAR 6, 7, 8 WE'RE NOT HAVING ANY EXPENDITURES AND THE POTENTIAL THAT IF WE CHARGE SOMETHING SIMILAR AND, AND NOT SUBSIDIZED, WE MIGHT BE GENERAL, UH, OVER THOSE YEARS AN ADDITIONAL 25. AND THAT WOULD BE GOING INTO THE EQUIPMENT FUND. THAT WOULD, SO I DON'T KNOW THAT I'VE GOTTEN THE FULL PICTURE. 'CAUSE TO ME THERE'S SOME PIECES MISSING THAT, THAT'S WHAT I'M TRYING TO GET TO. OKAY. YEAH. I, I WAS GONNA SAY THE, THE, THE THING ABOUT THE EQUIPMENT FUND BY ITSELF, YOU HAVE TO KIND OF THINK OF IT AS A TRANSACTIONAL. IT'S PURCHASING VEHICLES AND LEASING THEM. WHAT THE ENTERPRISE IS BRINGING IS A, IS TURNING OUR FLEET INTO A, A STRATEGIC ASSET. I'M SORRY, BATTLE CITY, UH, SECRETARY IS THE VOLUME UP. IT'S ON. IS IT UP? OKAY, NO PROBLEM. I GET IT. GO AHEAD. YEAH, SO I WAS JUST SAYING IT, THERE WE GO. IT'S TURNING THE, THE FLEET INTO A STRATEGIC ASSET BASICALLY. AND THE, IF WE RAISED, UH, THE INTEREST RATE UP TO 7%, WE WOULD GENERATE MORE INCOME FOR, FROM, FOR THE EQUIPMENT FUND, BUT WE JUST DON'T HAVE THE EXPERTISE TO KNOW WHEN TO ACTUALLY SELL THAT VEHICLE AND MAXIMIZE THAT EQUITY. AND THAT'S REALLY WHAT THIS PROGRAM DOES. YEAH. AND THEN THAT'S WHAT I'M SAYING, THERE'S SOME OFFSETTING FACTOR IN, YEAH, YOU'RE GONNA GET A HIGHER RESALE, BUT THEN YOU'RE THE YEARS 6, 7, 8, 9 THAT YOU HAVE ALREADY PAID FOR IT. THERE IS A, UH, YOU DIDN'T HAVE AN EXPENDITURE THOSE YEARS. THAT'S A SAVINGS THAT I DIDN'T SEE FACTORED INTO THIS, UH, EQUATION. SO WHEN WE LOOKED AT IT, I MEAN, IT'S, IT'S OVER A 10 YEAR PERIOD AND YEAR SIX, IT'S COMPARATIVE TO YOUR AVERAGE YEAR. SO YOU'RE CAPITAL BUDGET BASED ON REPLACING 12.8 VEHICLES A YEAR. SORRY, I SAW YOU HAD IT PRINTED OUT. YEAH. UM, AND WHAT YOUR AVERAGE CAPITAL BUDGET LOOKS LIKE, YOUR CURRENT MAINTENANCE AND FUEL COSTS, AND THEN EQUITY GAIN THAT YOU WOULD GET BACK. UM, AND IT COMPARES IT TO A PHASE IN OVER A TEN FIVE YEAR PERIOD. AND THEN THE SECOND ROTATION OF THE F FOLLOWING FIVE YEARS. SO IN YEARS SIX THROUGH 10, TO YOUR POINT, IS THE SUSTAIN THE MOST SUSTAINABLE PART OF THE PROGRAM BECAUSE IT'S WHERE WE'RE SELLING ASSETS EXACTLY THE RIGHT TIME AS WELL AND RECOUPING THAT EQUITY AND AGAIN, ABOVE THE PAYOFF. AND SO WE HAD A NET DIFFERENCE OF $500,000 OVER, YOU KNOW, AGAIN, CLOSE TO BREAK EVEN OVER THAT PERIOD OF TIME. AND WE BELIEVE THIS IS [00:55:01] CONSERVATIVE, BUT IT DOES TAKE INTO ACCOUNT THAT YOU WOULD ONLY BE PAYING, UH, REPLACING THOSE 12 VEHICLES A YEAR, AGAIN, SUSTAINING THAT 10 YEAR REPLACEMENT PLAN. SO IT'S TAKING INTO ACCOUNT WHEN YOU'RE SAYING, OKAY, WELL WE DON'T HAVE A PAYMENT. WELL, THAT'S, THAT'S, THAT'S GOOD. I MEAN, YOU'RE TALKING ABOUT THE LEASE COST VERSUS LEASE COSTS, BUT WHEN YOU TALK ABOUT THE TOTAL CAPITAL OF DOLLARS THAT ARE SPENT ON THOSE ASSETS, THERE'S, YOU KNOW, WE WE'RE TAKING TO ACCOUNT WHAT THAT LOOKS LIKE SO THAT THE TRUE HOLDING COSTS FOR YOUR HOLD PERIOD TODAY VERSUS WHAT WE'RE PROPOSING. THANK YOU. ALRIGHT. UH, THANK YOU FOR YOUR QUESTIONS, COUNSEL. UH, JUST A COUPLE THINGS AND THEN I'LL TRY TO WRAP IT UP. BUT, UM, UH, MR. PERNELL, YOU MENTIONED REBRANDING. WAS IT REBRANDING ON THE VEHICLE OR ARE YOU JUST SAYING REBRANDING BY HAVING A, I GUESS, MORE OF A UNILATERAL LOOK FOR EVERY DEPARTMENT TO HAVE MORE OF A SIMILAR VEHICLES? I CAN YOU KIND OF CLARIFY WHAT YOU MEAN BY REBRANDING? UH, YES SIR. THANK YOU FOR THE QUESTION, MAYOR. UH, YES. SO IT'S THE, CURRENTLY THE WAY WE BRAND OR MARK OUR VEHICLES IS IN-HOUSE WITH OUR OWN, UH, STICKERS. OKAY. ET CETERA. WHAT WE'RE LOOKING AT IS A NEW FORMAT FOR THOSE STICKERS. SO NOT USING THE, THE CITY'S BRANDING, BUT, UH, THE APPLICATION OF THAT AND THEN, UH, MORE PREMIER, UH, SYSTEMS COMPUTERS TO, TO PRINT THOSE THINGS OUT, TO PRINT OUT THOSE STICKERS. YES, SIR. OKAY, PERFECT. UM, I GUESS, UM, AGAIN, TO GO BACK TO CUSTOMIZING, SOME VEHICLES WOULD NEED RACKS, SOME VEHICLES WOULD NEED LIGHTS, UH, BUT YOU'RE SAYING, UH, THAT WOULD BE PRESENTED ON DELIVERY? SO PRETTY MUCH WE DON'T NEED TO DO ANYTHING AFTER WE RECEIVE THE VEHICLE, WE, WE ORDERING THE VEHICLES WITH THE, WITH THE ADDITIONAL ACCESSORIES ON THE VEHICLE, YEAH, WE'LL BE HELPING WITH ALL OF THAT AND ASSISTING WITH THE COST ANALYSIS ON THE FRONT END AS WELL. UM, AS IT RELATES TO PD SPECIFICALLY, WE DELIVER THE VEHICLE TO THE UPFITTER AND THEN LET THEM DO THE COMMUNICATING TO MAKE SURE EVERYTHING GETS UPFITTED CORRECTLY. PERFECT. AND AT THE BEGINNING OF THE PRESENTATION, UH, THE MAIN THING THAT STUCK WITH ME WAS, UM, COST NEUTRAL. RIGHT? SO I I, I DON'T KNOW IF COUNCIL MEMBER SIMS, IF WE REALLY GONNA SEE A STRONG DELTA, UM, YOU KNOW, YOU KNOW, FROM WHAT YOU'RE GONNA DELIVER, THERE IS SOME ADVANTAGES. OBVIOUSLY WE WILL HAVE MORE OF A EXPERT WHO'S DEDICATED TO BE ABLE TO MAKE SURE THAT WE ARE GONNA HAVE MORE OF AN EFFICIENT VEHICLE. UM, BUT I WOULD JUST LIKE TO SEE IF THERE'S, YOU KNOW, I'M JUST GONNA THROW IT OUT THERE. TO ME, I CAN SEE A, UH, A STRONG DELTA IF MAYBE WE WENT ALL ELECTRIC, UM, THEREFORE THERE IS NO MAINTENANCE, RIGHT? UM, SO WE WOULD JUST BE GETTING THE VEHICLE AND THEN IT WOULD BE OBVIOUSLY UP TO US TO MAKE SURE WE KEEP IT CHARGED. BUT IS THAT AN OPTION THAT MAYBE YOU CAN, UM, PR PROVIDE? I DON'T KNOW IF YOU HAVE THAT IN YOUR FLEET OR NOT, BUT, UM, I, TO ME THAT JUST SEEMS LIKE THAT WOULD BE A STRONG DELTA. WE AIN'T GOTTA WORRY ABOUT MAINTENANCE NO MORE. WE JUST USE THE, USE THE MILES AND YEARS TO BE ABLE TO TURN IT OVER. UM, WE CERTAINLY HAVE CLIENTS THAT HAVE ELECTRIC FLEETS. UM, I WOULDN'T SAY WE HAVE THAT MANY MUNICIPALITIES THAT HAVE ALL ELECTRIC FLEETS. WE'VE GOT ONE THAT JUST DID THEIR FIRST TESLA FOR PD, UM, HERE IN THE METROPLEX. BUT, UM, THE, THE CAVEAT TO GOING ALL ELECTRIC IS YOU'RE STILL GONNA HAVE MAINTENANCE ISSUES AS IT RELATES TO THE BATTERIES. UM, AND THERE'S A HUGE UNKNOWN AS IT RELATES TO THE RESALE MARKET. UM, IF I PROMISE, IF ENTERPRISE THOUGHT IT WAS MORE COST EFFECTIVE TO RUN AN ALL ELECTRIC FLEET, WE WOULD GET RID OF ALL OF OUR VEHICLES AND RUN ELECTRIC. WELL, I GUESS MAYBE POLICE, YOU KNOW, IT, IT MAY BE THE MORE VEHICLES THAT GET USED MORE OFTEN, BUT I GUESS THERE'S SOME VEHICLES, YOU KNOW, THAT MAY NOT NECESSARILY NEED TO BE FUELED. THEY COULD BE RUNNING THAT WAY. I'M JUST CURIOUS IF THERE IS A WAY FOR US TO BE ABLE TO ACTUALLY HAVE MORE OF A STRONG DELTA IF WE'RE GONNA ACTUALLY CHANGE TO A NEW MODEL. WE, WE WOULD BE HAPPY TO WORK THROUGH ANY ANALYSIS WITH YOU ALL AND HELP YOU GUYS MAKE THAT DECISION IF IT'S THE RIGHT FOR CITY OF CEDAR HILL. OKAY. UM, YEP. WE'RE HAPPY TO HELP. PERFECT. WELL, I APPRECIATE, YOU KNOW, YOUR TIME FOR YOU TO BE ABLE TO COME OUT AND, AND PRESENT TO US TODAY. UH, THIS KIND OF JUST OPENS UP OUR, OUR MIND. I'M ASSUMING THERE'S NO ACTION TODAY. THIS IS MORE JUST INFORMATION FOR COUNCIL TO CONSIDER, UH, MAD OF CITY MANAGER. IF WE COULD MAYBE BRING THIS AROUND AGAIN AND KIND OF SEE, YOU KNOW, THE, THE DIFFERENCE BETWEEN WHAT WE'RE CURRENTLY USING AND, UH, SEE IF THERE'S MAYBE A NEW METHOD OF HOW WE'D BE ABLE TO HAVE OUR FLEET IN OFFICE. UM, YOU KNOW, FOR OUR, FOR OUR CITY, UH, WE'D KIND OF LIKE TO BE ABLE TO SEE THE, THE PROS AND CONS OF BOTH SIDES. HOW ARE WE ACTUALLY PERFORMING AND THEN POTENTIALLY WHAT WE CAN ACTUALLY GET FROM A NEW PARTNER. YES. YES. MAYOR AND COUNCIL. UM, WE CAN, UH, BRING THIS BACK FOR MAY 26TH, UH, BRIEFING SESSION. I THINK, UH, WE WERE WORKING ON, UH, UH, A PROPOSAL THAT WOULD ASSUME OCTOBER ONE GO LIVE. AND SO IF THAT'S, UH, NOT OF INTEREST TO THE COUNCIL, THAT'S, THAT'S, WE, WE JUST NEED TO KIND OF COORDINATE THAT WITH OUR VENDOR. UM, BUT UH, WE CAN BRING THAT BACK TO, UH, COUNCIL FOR A BRIEFING SESSION ON MAY 26TH. OH, OKAY. JUST [01:00:04] THANK YOU, MAYOR. SO IF YOU DON'T MIND, I'D LIKE TO MEET WITH YOU AND, AND MAYBE THE, UH, FINANCE DIRECTOR JUST TO GO INTO MORE DETAIL. UH, BE JUST OVER THE NEXT, THIS WEEK. NEXT WEEK. THANK YOU. AND REAL QUICKLY, CUSTOMER HAYDEN, DID YOU HAVE ANYTHING? MAYOR, MAYOR, I JUST, THE ONLY THING I HAD ON THAT WAS, UH, HOW DID IT AFFECT OUR EQUIPMENT FUND? IS IT NEGATIVELY AFFECTED OR POSITIVELY AFFECTED OUR EQUIPMENT FUND? UH, NO. I DON'T THINK IT'S GONNA HAVE, I DON'T, I THINK THE EQUIPMENT FUND IS SOLVENT, VERY SOLVENT. IT HAS $3.6 MILLION IN CASH TODAY, AND IT, IT'S GONNA CONTINUE TO LEASE VEHICLES TO THE, YOU KNOW, HEAVY EQUIPMENT, OTHER KIND OF EQUIPMENT. SO I DON'T, I DON'T THINK IT'S GONNA HAVE AN IMPACT. OKAY. THAT IT'S ONE OF THESE THINGS WHERE WE'RE DOING THIS OVER MANY YEARS. AND SO IT'S, IT'S GOT LIFE OVER MANY YEARS. OKAY. THANKS. ALRIGHT. UM, WELL, UM, I APPRECIATE YOUR TIME AND, UH, WE'LL HOPEFULLY BE ABLE SEE YOU AGAIN. ALRIGHT. UM, MAYBE AT A WORKSHOP. ALRIGHT, COUNSEL. UM, IF YOU DON'T MIND, IT'S PAST SEVEN O'CLOCK AND I WOULD LIKE TO JUST POSTPONE OUR CLEAN CITY INITIATIVE PRESENTATION. UM, SO I, I KNOW Y'ALL WORKED HARD ON THAT, BUT, UH, IF YOU COULD PUSH IT, PUSH IT DOWN. UH, WE GONNA BE CELEBRATING TONIGHT. SO, UM, SO COUNSEL, AT THIS TIME I'LL ENTERTAIN A MOTION FOR TO ADJOURN. MOTION TO ADJOURN. SECOND, I HAVE A MOTION FROM COUNCILMAN MCCURDY. I HAVE A SECOND FROM COUNCILWOMAN. UH, INE. UH, THAT'S AN NON DEBATEABLE MOTION OFF. PLEASE RAISE YOUR RIGHT HAND. I HAVE 7 0 4. WE ARE ADJOURNED FOR MY BRIEFING SESSION. COUNSEL, YOU WANNA GO RIGHT INTO. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.