[1. CALL TO ORDER ] [00:00:04] ALRIGHT. ALL RIGHT. TODAY IS MONDAY, APRIL 21ST, 2025. WILL NOW CALL THE CITY COUNCIL SPECIAL MEETING TO ORDER AT 5:32 P.M. ITEM NUMBER TWO IS ROLL CALL. WE DO HAVE A QUORUM OF COUNCIL. ITEM NUMBER THREE ARE PUBLIC COMMENTS. CITY SECRETARY, DO WE HAVE ANY PUBLIC COMMENTS? [(a) Receive a Presentation and Hold a Discussion - Utility Capacity] NO, MR. MAYOR, WE DO NOT. OKAY. THANK YOU. ITEM NUMBER FOUR DISCUSSION AND POSSIBLE ACTION FOR RAY TO RECEIVE A PRESENTATION AND HOLD A DISCUSSION ON UTILITY CAPACITY. WE HAVE NICHOLAS COOK, ASSISTANT UTILITIES DIRECTOR. YES, SIR. GOOD EVENING. GOOD EVENING. GOOD EVENING. I'M GLAD TO BE BEFORE YOU TODAY. THIS IS A PRESENTATION THAT HAS BEEN POSTPONED A COUPLE OF TIMES. AND SO I'M HERE TO TALK TO YOU ABOUT THE PRIORITY THAT YOU DIDN'T KNOW THAT YOU HAD. ALL RIGHT, SO WE'RE LOOKING AT VISION 2040, TALKING ABOUT UTILITIES. THE REASON THAT I SAY IT'S THE PRIORITY THAT YOU DIDN'T KNOW THAT YOU HAVE IS, IS WITH THE PRIORITY OF GROWTH, IT ALSO MEANS A PRIORITY OF INFRASTRUCTURE THAT SUPPORTS ALL OF THAT GROWTH. SO TODAY WE'RE DISCUSSING THE 2040 VISION OF UTILITIES. AS YOU KNOW, MISSOURI CITY IS DIFFERENT FROM MANY OF THE CITIES. AND THE FACT THAT IT'S MADE UP OF SO MANY DIFFERENT MUD DISTRICTS. THIS UPDATE IS TO PROVIDE YOU WITH INFORMATION ON THE KEY INFRASTRUCTURE PROJECTS THAT MEET CAPACITY NEEDS. THAT MEANS THAT WE PROVIDE ADEQUATE WATER AND WASTEWATER TO SUPPORT THE GROWTH OF THE AREA. THESE PROJECTS SUPPORT THE ULTIMATE BUILD OUT. HOWEVER, THEY'RE BUILT IN PHASES AND THE PROJECTS ALSO ALLOW FOR MORE EFFICIENT USE OF UTILITIES THROUGH REGIONALIZATION. IN A CITY OF OUR SIZE, YOU WOULD TYPICALLY SEE 3 TO 4 WASTEWATER TREATMENT PLANTS. HOWEVER, IN OUR CITY WE HAVE 12. TODAY WE'LL BE ASKING FOR SOME DIRECTION AS IT RELATES TO FUNDING AND POLICY CONSIDERATIONS AND HOW WE CAN RECOUP MORE OF OUR INFRASTRUCTURE DEVELOPMENT COSTS, WHICH IS TRADITIONALLY BEEN PAID THROUGH IMPACT FEES. USER FEES ARE THE MONTHLY BILLS WATER USERS PAY, WHICH COVER UTILITY COSTS BUT ALSO INCLUDE CAPITAL IMPROVEMENT. SORRY ABOUT THAT. LASTLY, WE'LL TALK ABOUT THE CITY VERSUS DEVELOPER OBLIGATIONS FOR THE EXPANSION OF UTILITIES. SO THIS IS THE MUSTANG BAYOU SERVICE AREA. IT'S IN THIS AREA THAT THE CITY HAS SEEN ITS MOST CONCENTRATED CITY RETAIL AREA, BUT ALSO SOME OF ITS BIGGEST GROWTH. BESIDES THE CITY RETAIL AREA, THERE'S ALSO TWO MUD DISTRICTS. THE MAP ON THE LEFT SHOWS THE FACILITIES THAT ARE OWNED BY THE CITY, WITH THE NEED FOR EXPANSION. PARTICULARLY OF INTEREST, ARE PLANTS ONE AND TWO, LOCATED AT THE BLUE SQUARES. THESE ARE WATER PLANTS THAT PROVIDE DRINKING WATER. THE RIGHT MAP SHOWS THE DISTRIBUTION AND COLLECTION SYSTEM. SO THE DISTRIBUTION, THE DISTRIBUTION SYSTEM IS HOW THE PLANTS SEND DRINKING WATER OUT, AND THE COLLECTION SYSTEM IS HOW WASTEWATER IS COLLECTED SO THAT IT CAN BE TREATED. THIS MAP IS USED TO SHOW WHERE SOME OF THE LINES AREN'T YET, DON'T YET EXIST FOR FUTURE GROWTH. SO YOU CAN SEE THOSE RED LINES AT THE BOTTOM OF YOUR MAP. SO THIS AREA HAS SEEN A LOT OF GROWTH, AVERAGING 500 NEW CONNECTIONS PER YEAR. T-C-E-Q DEFINES A CONNECTION AS A WATER USER, NOT A WATER METER. SO THAT MEANS EVERY HOUSE IS A CONNECTION. AND AN APARTMENT COMPLEX THAT HAS 500 UNITS WOULD BE CONSIDERED 500 ADDITIONAL CONNECTIONS. THE TREND OF 500 CONNECTIONS PER YEAR IS EXPECTED TO CONTINUE THROUGH THE ULTIMATE BUILDOUT OF THE SERVICE AREA. RIGHT NOW, WE HAVE APPROXIMATELY 5200 CONNECTIONS, AND THE ULTIMATE BUILDOUT IS APPROXIMATELY 8000 CONNECTIONS. THE CITY OWNS TWO WATER PLANTS IN THIS AREA AND ONE WASTEWATER FACILITY. PARTNERSHIPS. PARTNERSHIPS EXIST WITH MUD 47 AND 48 FOR THESE FACILITIES, BUT EACH OF THEM ALSO HAVE THEIR OWN RETAIL BASE. 10 TO 15 YEARS AGO, THE CITY DID NOT ANTICIPATE THE GROWTH OF THIS AREA IN THE WAY THAT IT'S EXPANDING NOW. PROJECTS HAVE HAD TO STACK UP TO KEEP UP WITH DEVELOPMENT BECAUSE EXTENDING UTILITIES IS TIME CONSUMING AND EXPENSIVE. IT TAKES FIVE OR MORE YEARS FOR MOST PROJECTS, INCLUDING IDENTIFICATION, FUNDING, DESIGN AND CONSTRUCTION FOR A PROJECT TO ACTUALLY COME TO FRUITION. THE CITY HAS BEEN INCREASING CAPACITY AND EXTENDING UTILITY LINES TO DEVELOPERS, SO RIGHT NOW WE'RE FOCUSING ON BOTH IDEAS. SO OUR CAPACITY LIMITATIONS COME IN THREE DIFFERENT AREAS SUPPLY STORAGE AND PRESSURE MAINTENANCE. THESE ARE ALL PROVIDED BY TC. THE RED LINE IS OUR REGULATORY CAPACITY AGAIN THAT THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY HELPS TO PROVIDE. CURRENTLY THE CAPACITY IS LIMITED BY SUPPLY, BUT OTHER FACTORS WILL START TO AFFECT OUR CAPACITY. IN OUR RED LINE. YOU CAN SEE THAT THERE ARE TWO JUMPS. THOSE TWO JUMPS REPRESENT PROJECTS THAT ARE CURRENTLY EITHER BEING UNDERTAKEN OR CURRENTLY IN DESIGN, THE FIRST ONE BEING THE PLANT TWO UPGRADE, WHICH SHOWS AN INCREASE OF 500 CONNECTIONS. AND THEN IN 2027, WE SHOW THE NEW WATER WELL SHOWING 1000 MORE CONNECTIONS. THE BLUE LINE IS THE PROJECTION OF CONNECTIONS IN THIS AREA. THE PROJECTED PROJECTS HAVE BEEN [00:05:03] PLOTTED BASED ON. WHEN DEVELOPERS BELIEVE THEIR PROJECT, THEIR PROJECTS WILL BE COMPLETE AND THE CAPACITY ACTUALLY TAKEN. THESE PROJECTS ALL HAVE CAPACITY LETTERS AND THEY'RE ALL PROJECTS OF SIGNIFICANT SIZE. SO THERE ARE SOME OTHER SMALLER PROJECTS WHERE WE'VE GOT A SMALL STRIP CENTER THAT'S GOT 4 OR 5 CONNECTIONS, AND IT'S NOT REPRESENTED IN THIS GRAPH. SO YOU CAN SEE THAT IN QUARTER THREE AND QUARTER FOUR OF 2026, WE CURRENTLY SHOW THAT THERE'S A GAP. SO BEAR WITH ME TILL THE NEXT SLIDE AND I'LL EXPLAIN HOW THAT GAP IS TAKEN CARE OF. BUT PROJECTS ARE PLANNED TO STAY AHEAD OF THIS REGULATORY CAPACITY. BUT TIMING AND FUNDING IS REALLY IMPORTANT TO KEEP US ON TRACK. SO FOR THE GAP SOLUTIONS FIRST, STAFF HAS TO BE AWARE OF THE OVERALL STATUS OF ITEMS THAT MAKE UP CAPACITY. WE HAVE TO EDUCATE LEADERSHIP AND WE HAVE TO EDUCATE COUNCIL, WHICH IS WHAT I'M DOING HERE TONIGHT, AND WE HAVE TO PRIORITIZE AREAS THAT COULD CAUSE RESTRICTIONS. SO THE PLANT ONE UPGRADE ON THE PREVIOUS SLIDE SHOWED THAT WE WERE GETTING AN INCREASE OF 500, 500 CONNECTIONS. WE DO AND WE HAVE AN APPLICATION FOR A CAPACITY REQUEST THAT INCLUDES 1000 CONNECTIONS FROM THAT PROJECT, BECAUSE THE PROJECT WENT BETTER THAN ANTICIPATED, AND THE DATA SHOWS THAT IT COULD SUPPORT THAT. SO THAT GAP IS ACTUALLY TAKEN CARE OF WITH THAT, WITH THAT PROJECT. AND WE'RE ABLE TO OVERCOME THE GAP THAT YOU SAW FOR QUARTER THREE AND QUARTER FOUR OF 2026. WE'LL KNOW EXACTLY HOW MANY WE GET FROM TC LATER ON THIS SUMMER. THE NEW WATER WELL IS EXPECTED TO BE COMMISSIONED IN 2027. STRIDES WERE PREVIOUSLY TAKEN BY COUNCIL THROUGH THE ACQUISITION OF LAND TO EXPAND THE FACILITY. ADDITIONALLY, WE HAVE A SURFACE WATER TREATMENT PLANT TRANSMISSION LINE TO SECURE THE LAST NEEDED SUPPLY. THAT PROJECT IS FUNDED THROUGH THE GRP FEE, BUT STORAGE AND PRESSURE MAINTENANCE BECOME LIMITING FACTORS EVENTUALLY, AND WE ALSO HAVE TO MAKE SURE THAT THE WASTEWATER PLANT IS LARGE ENOUGH TO PROCESS THE CAPACITY THAT WE'RE BUILDING ON THE WATER SIDE. SO WE HAVE TO BALANCE BOTH WATER AND THE WASTEWATER PROJECTS. SO DON'T GET BOGGED DOWN BY THIS CHART. LOTS OF COLORS, LOTS OF INFORMATION. BUT HERE WE'RE TRYING TO SHOW THE COST OF THE COST BY PROJECT AND THE EXPECTED COST BY YEAR. BUT THE IMPORTANT TAKEAWAY IS THAT MOVING INTO 2040 WILL REQUIRE ALL OF THESE PROJECTS. WE HAVE ESTIMATED THAT THERE'S $60 MILLION IN NEEDED FUNDS TO COMPLETE THESE PROJECTS IN THE NEXT FIVE YEARS. THAT'S $60 MILLION OF UNFUNDED PROJECTS AS OF TODAY. AT THE TOP OF EACH YEAR, WE SHOW THE TOTAL COST NEEDED TO KEEP US ON TRACK AND TO STAY AHEAD OF THE CAPACITY NEEDED, WHICH IS CURRENTLY PREDOMINANTLY UNFUNDED. AND YOU CAN SEE THAT IN PROJECT YEARS 2026 AND 2027, THEY BOTH HAVE REALLY HIGH FUNDING NEEDS TO KEEP US ON TRACK. PART OF THE REASON FOR THAT IS THERE WERE MULTIPLE PROJECTS THAT WEREN'T FUNDED IN YEAR 2025 THAT WOULD CONTINUE TO KEEP THE GROWTH IN THIS SERVICE AREA. SO HOW DO WE ACTUALLY FUND OUR PROJECTS? SO UTILITY RATES ARE EXPECTED TO INCREASE TO SUPPORT CAPITAL IMPROVEMENT PROJECTS. IMPACT FEES ALSO RECOUP COSTS OF INFRASTRUCTURE AT A RATE OF 50%. AS A COMPARISON TO UTILITY DISTRICTS, THE MUD'S MAIN PURPOSE IS TO EXTEND INFRASTRUCTURE AND UTILITIES AND TO REIMBURSE DEVELOPERS. THEY'RE ABLE TO RECOUP COSTS THROUGH THROUGH THEIR TAX RATES AND USER FEES. SO I JUST WANT TO MAKE THAT CLEAR THAT TAXES CAN BE USED AS PART OF THEIR OPERATIONAL NEEDS, WHERE THAT'S NOT AN OPTION FOR THE CITY. THE CITY IMPACT FEE RATES WERE UPDATED A COUPLE OF YEARS AGO, BUT IN ADDITION COULD ALSO BE FORTHCOMING. BASED ON OUR CONVERSATION TONIGHT, THE MUSTANG BAYOU SERVICE AREA USER FEES HAVEN'T BEEN UPDATED SINCE 2012. THESE RATES TYPICALLY PAY O&M FEES, BUT ALSO BEAR CAPITAL COSTS THAT ENRICH THE INFRASTRUCTURE OF THE AREA. IT'S IMPORTANT THAT UTILITIES EVALUATE RATES ON A REGULAR BASIS AND PROVIDE MECHANISMS FOR ADJUSTMENT AND INFLATION BETWEEN ANALYZES. SO THE CRUX OF WHY WE'RE HERE IS THE $60 MILLION IN PROJECTS THAT ARE CURRENTLY UNFUNDED. AND THIS AND THIS FIGURE, THE $60 MILLION DOES NOT INCLUDE ANY LINE WORK. AND AS I SAID UP FRONT, CURRENTLY THE CITY IS DOING BOTH LINE WORK AND CAPACITY INCREASES. SO THE CITY CURRENTLY BUILDS BOTH CAPACITY AND EXTENDS UTILITY LINES. AND THE POLICY FOLLOWS WITH OUR IMPACT FEE STUDY. BUT IT CREATES A LARGER FUNDING GAP IN THE INABILITY FOR THE UTILITY SYSTEM TO MEET THE DEVELOPER SCHEDULE. THE ALTERNATIVE POLICY IS THAT WE BUILD ONLY CAPACITY LINES, WOULD BE EXTENDED BY DEVELOPERS, AND WOULD ALLOW THE CITY TO FOCUS ITS FUNDING ON INCREASING THE CONNECTION COUNT AVAILABILITY IN THIS POLICY ALTERNATIVE, THE IMPACT FEE STUDY WOULD NEED TO BE AMENDED. WE ALSO NEED TO TALK ABOUT UTILITY DISTRICTS. THE AGE OF SOME OF THE INFRASTRUCTURE THAT THEY HAVE IS GETTING OLD, AND SOME NOT. ALL OF THE DISTRICTS ARE NOT IN A POSITION TO ADDRESS THESE NEEDS, ESPECIALLY AS IT RELATES TO IN CITY DISTRICTS. SHOULD THE CITY HELP TO ADDRESS [00:10:02] THE NEEDS OF THE MUDS, OR SHOULD IT BE THE SOLE RESPONSIBILITY OF THE DISTRICTS WITH THE CITY MUDS? THEY'RE ALL THEY'RE ALL CITY RESIDENTS AND YOU REPRESENT THEM. SO IS IT JUST THE MUDS OR DO WE HELP SUPPORT THAT EFFORT? LASTLY, WHILE WE BUILD FACILITIES TO ACCOMMODATE THE BUILD OUT, DO WE ALSO PLAN TO BUILD A FACILITY TO TAKE FLOWS FROM OTHER AREAS THAT HAVE OLD PLANTS OR THAT CANNOT MEET NEW REGULATIONS? SO WHAT IS OUR ROLE IN THAT? WHAT DOES IT ACTUALLY LOOK LIKE? OF COURSE, WE WOULD RECOUP SOME OF OUR COSTS THROUGH UPDATED USER FEES, AND WE WOULD BE ABLE TO USE THE IMPACT FEES TO HELP SUPPORT THAT. BUT WE WOULD ALSO EXPECT AGREEMENTS FROM THE OTHER USERS TO HELP RECOUP ADDITIONAL COSTS. BUT HOW IS IT THAT WE ACTUALLY DRIVE THIS FORWARD? IN SUMMARY, WE'RE LOOKING FOR SOME FEEDBACK TODAY AND PAINTED A PICTURE OF WHAT THE CITY NEEDS IN THE WAY OF UTILITIES. SO SOME OF THE FEEDBACK THAT WE'RE LOOKING FOR SPECIFICALLY WHILE WE'VE BEEN DOING BOTH LINE WORK AND PLANT CAPACITY, THE FUNDING, AVAILABILITY AND TIME PREVENTS US FROM CONTINUING AND MEETING THE GROWTH DEMANDS, ITS STAFF RECOMMENDATION THAT WE FOCUS ON ONLY EXPANDING THE PLANT CAPACITY AND ALLOW DEVELOPERS TO EXTEND LINES. SECOND, DO WE BUILD THE MUSTANG BAYOU SERVICE AREA, BUILD OUT FOR $30 MILLION, WHICH IS THE NEXT STEP OF OUR WASTEWATER TREATMENT PLANT? THAT WOULD ONLY HELP TO START REPLACING THE EXISTING PACKAGE PLANT THAT ONLY HAS A LIFESPAN OF APPROXIMATELY TEN YEARS. OR DO WE START TO HAVE CONVERSATIONS WITH POTENTIAL PARTNERS AND PLAN FOR A $100 MILLION FACILITY? THAT ACTUALLY TAKES US INTO THE LONG TERM AND LOOKS AT THAT, THAT FUTURE THIRD USER FEES. WHILE WE'RE NOT TALKING A LOT ABOUT USER FEES TONIGHT, IT IS SOMETHING THAT NEEDS TO BE USED TO INCREASE COST RECOVERY. AND THERE'S GOING TO BE MORE UPDATES FORTHCOMING. AND THEN LASTLY IS CAN COUNCIL CLARIFY THE ROLE OF THE CITY IN ADDRESSING AGING INFRASTRUCTURE OUTSIDE OF THE CITY RETAIL AREA, BUT INSIDE DISTRICT BOUNDARIES? SO WITH THAT, I WILL HAVE ANY QUESTIONS AND HOPE THAT YOU HAVE A REALLY GREAT CONVERSATION TALKING ABOUT THESE ITEMS. THANK YOU. NICHOLAS. RECOGNIZING COUNCIL MEMBER. BONNIE. THANK YOU MAYOR. WELL, THAT'S A THAT'S A LOT TO DIGEST AND TO THINK ABOUT. BUT IT'S VERY IMPORTANT. AS YOU KNOW SHASHI AND YOU KNOW EVERYONE CITY MANAGER I'VE BEEN TALKING ABOUT REACHING OUT ABOUT POTENTIAL REGIONAL PROJECTS THAT WE COULD POTENTIALLY PARTNER ON OR SOME NEEDS THAT WE MAY HAVE THROUGH HJK BECAUSE THERE'S A CALL OUT FOR PROJECTS. I DON'T KNOW IF ANY OF THE THINGS THAT WE ARE LOOKING TO DO ARE SOMETHING THAT WE COULD DO WITH OTHER PARTNERS IN THE AREA. I THINK SO BASED OFF OF WHAT I'VE HEARD, BUT I'LL LEAVE THAT TO YOU AS THE EXPERTS TO TELL ME. BUT I THINK THAT'S DEFINITELY SOMETHING THAT WE SHOULD CONSIDER. I'VE BEEN TALKING WITH JUSTIN BOWERS OVER AT HJK ABOUT OUR POTENTIAL PARTICIPATION AND HOW WE COULD, YOU KNOW, BUT WE'RE NOT THEY'RE NOT LOOKING FOR INDIVIDUAL PROJECTS. THEY'RE LOOKING FOR SOMETHING THAT WOULD BENEFIT OTHERS AS WELL, OTHER PARTNERS IN THE REGION. BUT I'M HOPEFUL THAT WE CAN HEAR ABOUT THAT. DO WE HAVE THE PLANNED INFRASTRUCTURE OR GROWTH PLANS FOR THE MUDS IN THE AREAS THAT ARE IMPACTED? DID THEY DO THEY HAVE SOMETHING THAT THEY PROVIDE TO US THAT WE COULD LOOK AT TO SEE WHAT THEIR PLANS ARE? SO MUD 47 AND MUD 48 ARE BOTH ALMOST GROWN OUT. THEY ALSO BOTH HAVE OWNED CAPACITY IN THE PLANT. SO THE PROJECTS THAT COME UP IN THEIR DISTRICTS BECAUSE THEY ALREADY HAVE OWNED CAPACITY THAT THEY HAVEN'T MET YET, IT'S JUST TAKING UP THAT THAT UNUSED CAPACITY THAT THEY CURRENTLY OWN. SO BY THE TIME THEY FULLY DEVELOP, IT SHOULD BE THE LAST OF WHAT THEY CURRENTLY OWN. SO THEY DON'T HAVE A NEED FOR EXPANDED CAPACITY. SEVERAL OF THE PROJECTS THAT WE'RE CURRENTLY DOING, IF THE PROJECT IS A RENOVATION AND AN EXPANSION OF CAPACITY, ALL OF THE EXPANDED CAPACITY IS GOING TO THE CITY, AND THEY'RE HELPING IN SHARED COSTS FOR THE RENOVATION PORTIONS ONLY. MY LAST QUESTION BEFORE I MAKE A COMMENT IS, WHAT TYPE OF STRATEGY CAN WE POTENTIALLY DEVELOP THAT CONSISTS OF OR BALANCES UPDATING USER FEES, IMPACT FEES? ALSO, WORKING WITH THE MUDS AND OR PARTNERS, WHOEVER THEY MAY BE, AND POTENTIAL FUTURE BOND REFERENDUM. SEEMS LIKE SOME OF THIS STUFF CAN'T JUST BE BITTEN OFF BY ONE PARTICULAR THING. SO HAVE WE TALKED ABOUT THAT? AND WE HAVE. AND WE'RE LOOKING AT ALL POTENTIAL SOURCES, NAMELY GRANTS. I MEAN, WE JUST REAPPLIED FOR THE GRANT WITH THE FUNDS FROM CONGRESSMAN AL GREEN'S OFFICE THAT WE SUBMITTED LAST YEAR, AND WE WERE INSTRUCTED AGAIN TO RESUBMIT THE REQUEST FOR THOSE FUNDS THIS YEAR. IN ADDITION TO THAT, IT'S GOING TO TAKE A MULTITUDE OF DIFFERENT SOURCES, WHETHER IT'S USER FEES. AND THE PROBLEM WITH USER FEES FOR US IS OUR POPULATION IS SO SMALL THAT TRYING TO RECAPTURE THOSE THROUGH USER FEES IS GOING TO SIGNIFICANTLY INCREASE THE COST TO OUR USERS. SO WE REALLY NEED TO THINK BROADLY ABOUT SOME OF [00:15:06] THOSE STRATEGIES, WHETHER IT'S GRANT FUNDS, USER FEES, DEVELOPER COSTS, TERS, ALL THOSE, ALL THE THINGS WE ARE LOOKING AT AND TRYING TO COME UP WITH SOME REALISTIC PROPOSALS. THANK YOU. WELL, AND TO PUT IT TO PUT A NUMBER BEHIND THAT, YOU'RE TALKING ABOUT GROWTH WITHIN THE CITY THAT BENEFITS THE ENTIRE CITY BEING BUILT ON THE BACK OF 2900 CONNECTIONS, BECAUSE THAT'S THE CITY'S PORTION OF THE MUSTANG BAYOU. SO WHENEVER WE TAKE OUT DEBT FOR PROJECTS THAT ARE IN THE SERVICE AREA, IT'S NOT APPLIED TO EVERYBODY IN THE CITY BECAUSE IT'S NOT COMING FROM A TAX RATE. IT'S COMING FROM WATER USER FEES, WHICH IS ONLY THE RETAIL AREA. 47 MUDS, 47 AND 48 ARE RESPONSIBLE FOR THEIR OWN RATES. AND WE HAVE NOTHING TO DO WITH THAT. SO 2900 CONNECTIONS IS PAYING FOR ALL OF THE PROJECTS IN THE SERVICE AREA. THANK YOU. AND THE STATEMENT I JUST WANTED TO MAKE IS, YOU KNOW, AND I DON'T WANT TO GET HEAVY IN THE WEEDS ON IT, BUT WE'VE TALKED HEAVILY ABOUT THE EXISTING MUDS IN OUR CITY AND WHAT OUR PLAN IS FOR THOSE. I THINK THIS HAS TO BE A SIMULTANEOUS CONVERSATION, YOU KNOW, BUT I'M SAYING, YOU KNOW, BY ASKING US, HOW DO WE SOLVE THE PROBLEM? I THINK THAT IT'S IT HAS TO BE ALSO IN CONJUNCTION WITH, WITH LOOKING AT WHAT WE'RE GOING TO DO WITH THE EXISTING MUDS IN THE AREA. RECOGNIZING COUNCIL MEMBER O'DEKIRK. YES, I AGREE WITH COUNCIL MEMBER BONEY. YOU THREW A WHOLE PLATE STUFF AT US. SO BUT TAKE TAKE A FEW BITES. SO DEVELOPER FEES OBVIOUSLY EQUALS HIGHER UPFRONT HOUSING COSTS. SO I YOU KNOW, WE'VE HAD A LOT OF PUSHBACK FROM DEVELOPERS SAYING THAT WE CAN'T DO A PROJECT XYZ IF WE DON'T, YOU KNOW, LET US HAVE MUDS OR PROVIDE ANOTHER INFRASTRUCTURE. SO THERE'S A DELICATE BALANCE THERE. HAVE WE HAD DO WE DO WE KNOW OF CURRENT PUSHBACK, OR ARE WE JUST GOING TO SAY THAT IT IS WHAT IT IS. WE'VE GOTTA WE'VE GOTTA PUSH THIS ONTO DEVELOPERS. IF WE CAN'T AFFORD THESE UPFRONT USER FEES. SO I THINK, AS STATED, IT'S GOING TO BE A COMBINATION OF THINGS. AND, YOU KNOW, DEVELOPERS CAN SAY THAT IT'S GOING TO IMPACT THE UPFRONT HOUSING COSTS. BUT HAVE WE SEEN LOWER COSTS BECAUSE WE'VE BEEN GIVEN DISCOUNTS ON UTILITIES? OKAY, OKAY. SO THE $30 MILLION FACILITY VERSUS 100 $100 MILLION FACILITY, THIS IS THIS IS FUTURE PLANNING. THIS IS. DECIDING NOW THAT WE NEED THIS CAPACITY. WE NEED THIS INFRASTRUCTURE. EXPLAIN TO ME A LITTLE BIT MORE OF THE DIFFERENCE BETWEEN THE TWO. SURE. SO ONE OF THE FOR THE WASTEWATER TREATMENT PLANT, WE CURRENTLY HAVE TWO PACKAGE PLANTS. A PACKAGE PLANT IS A STEEL PLANT. IT'S GOT AN ESTIMATED LIFESPAN OF 10 TO 15 YEARS. THE FIRST ONE THAT WE PURCHASED WAS USED. SO TAKE A FEW YEARS OFF OF THAT. THE FACILITY THAT WE'RE PROPOSING, WHICH IS IN IN IS SCHEDULED FOR THE PROPERTY THAT WAS WAS ACQUIRED LAST YEAR. IMMEDIATELY TO THE WEST OF OUR FACILITY IS GOING TO BE A CONCRETE PLANT TO BE BUILT IN PHASES. SO CURRENTLY OUR PERMIT ALLOWS US FOR 2 MILLION GALLONS OF FLOW. THE ULTIMATE BUILD OUT OF THAT FACILITY COULD ACCOMMODATE SIX, BUT IT WOULD BE BUILT IN IN PHASES. SO THE QUESTION IS HOW MUCH DO WE DO UPFRONT? DO WE DO? IT'S DESIGNED FOR 1.5 MILLION GALLON TRAINS. SO DO WE DO WE START WITH JUST A SINGLE TRAIN TO REPLACE A MAJORITY OF THE OF THE TEMPORARY PLANT THAT WE KNOW IS GOING TO FELL IN THE NEXT TEN YEARS, OR SORRY, EXPECTS TO FELL IN THE NEXT TEN YEARS, OR DO WE BUILD TWO TRAINS TO START WITH? AND I WILL SAY THAT WE'VE HAD SOME INTEREST FROM SOME OF THE MUD DISTRICTS. SO MUD DISTRICT 26 CAME TO US BECAUSE THEY'RE TRYING TO FIGURE OUT WHAT TO DO WITH THEIR FACILITY. THEY'VE GOT A SINGLE TRAIN, THEY'VE GOT A LOT OF WORK THAT NEEDS TO BE DONE. AND THEY'RE CURRENTLY SENDING CLOTHES TO QUAIL VALLEY. THE QUAIL VALLEY PLANT IS 40 YEARS OLD. THEY'RE NOT ABLE TO MEET ADDITIONAL PERMIT REQUIREMENTS IF THE PERMIT BECOMES MORE STRINGENT. SO THEY'RE LOOKING AT WHAT CAN THEY DO. BUT AS I SAID, THESE PROJECTS DON'T JUST HAPPEN OVERNIGHT. SO DO WE. DO WE PLAN SMALL AND GET SMALL RESULTS OR DO WE PLAN BIGGER? OKAY. THANK YOU. AND SO THIS WILL HELP MUDS NOT TO TAKE OUT THAT EXTRA BOND MONEY SO THAT WHEN WE DO DISCUSS WELL NOT NOT NECESSARILY BECAUSE AS, AS THE MUDS EXIST, THEY WOULD BE RESPONSIBLE FOR THEIR SHARE OF THE NEW FACILITY. SO THAT WOULD BE THAT WOULD BE ONE OF THE FUNDING MECHANISMS FOR US TO GET THAT LARGER FACILITY. OKAY. SO THEY WOULD MORE THAN LIKELY BE TAKING OUT NEW BONDS TO CONTRIBUTE TO THIS. SO HOW [00:20:06] DOES THAT HELP US IN OUR DISCUSSIONS OF POTENTIALLY BRINGING THEM INTO THE FOLD? THAT'S ANOTHER CONVERSATION OKAY TO HAVE. BUT BASICALLY WHAT WHAT HE'S TALKING ABOUT IS OUR REGIONAL FACILITIES WHERE WE WOULD HAVE INTERESTED PARTIES BUYING INTO THOSE REGIONAL FACILITIES AND SHARING THE COSTS. RIGHT. FOR EXAMPLE, ON THE WEST SIDE OF TOWN, WE'VE GOT THE STEEP BANK, FLAT BANK PLANT THAT TAKES FLOWS FROM APPROXIMATELY SEVEN MUDS. SO IT WOULD BE LOOKING AT THE SAME THING FOR THE MUSTANG BODY SIDE. OKAY. RECOGNIZING COUNCIL MEMBER RILEY. YOU ACTUALLY ANSWERED MY QUESTIONS WITH COUNCIL MEMBER. BUT GREAT PRESENTATION I RECOGNIZE THE MAYOR PRO TEM BROWN OKAY. THANK YOU. AND THANK YOU FOR THE PRESENTATION. I JUST HAD A COUPLE OF QUESTIONS. YOU FIRST STARTED OUT ABOUT THE CITY HAVING 12 WASTEWATER PLANTS, AND I THINK I HEARD YOU SAY THAT GENERALLY A CITY OF OUR SIZE NORMALLY HAS 2 TO 3. CORRECT. SO WHAT WHAT CAN HOW DO WE GET TO 12. WHAT ARE THE 12? BECAUSE OF MY DISTRICTS. SO WHEN YOU LOOK AT HARRIS COUNTY THERE'S ACTUALLY AND IT'S BECOME MY FAVORITE MAP AS I TALK TO OTHER PEOPLE IN THE PROFESSION. THERE'S TWO WASTEWATER PLANTS THAT FROM STANDING ON TOP OF ONE STRUCTURE, YOU COULD ACTUALLY THROW A ROCK, A ROCK AND SPLASH ANOTHER PLANT. THAT'S JUST THE DEFINITION OF INEFFICIENCY. BOTH OF THOSE PLANTS ARE REALLY SMALL. ONE OF THEM IS HALF A MILLION. THE OTHER IS A QUARTER MILLION. THEY COULD HAVE BEEN COMBINED TO SEE SOME OF THE ECONOMIES OF SCALE. OH WOW. SO THIS COUNTS. ALL OF THE MUD DISTRICT OWNED FACILITIES. MY NEXT QUESTION IS ONE OF YOUR COMMENTS WAS TO KEEP PLANNED PROJECTS ON TRACK. WHAT PROJECTS IN PARTICULAR ARE YOU REFERRING TO? SO THE PROJECTS INCLUDE THE WATER WELL. SO THE WATER WELL IS CURRENTLY. THE NEW WATER WELL IS CURRENTLY UNDER DESIGN. HOWEVER, THE CONSTRUCTION OF THAT WATER WELL IS UNFUNDED. SO FOR US TO BE ABLE TO COMPLETE CONSTRUCTION IN 2027, WE HAVE TO HAVE SOME FUNDING MECHANISMS PRETTY QUICK. WE HAVE A PROJECT FOR AN ELEVATED STORAGE TANK WHICH PROVIDES BOTH VOLUME AND PRESSURE MAINTENANCE, SO THAT THAT PROJECT IS SOMETHING THAT IS NOT CURRENTLY UNDER DESIGN, BUT IT IS PART OF THE MASTER PLAN OF THIS OF THIS AREA. WE'VE GOT A PROJECT THAT IS SHOVEL READY, MEANING THE DESIGN IS ALREADY COMPLETELY FINISHED. TO INCREASE THE STORAGE CAPACITY AT WATER PLANT NUMBER TWO BY WITH A NEW 600,000 GALLON TANK, AND TO REPLACE TWO OF THE TANKS AT WATER PLANT. SORRY, THAT'S AT WATER PLANT ONE. AT WATER PLANT TWO IT'S REPLACING TWO OF THE TANKS. THAT PROJECT IS CURRENTLY UNFUNDED. IT'S SHOVEL READY, DESIGNED DESIGN IS COMPLETE. ALL WE HAVE TO DO IS BE ABLE TO FUND IT SO THAT THEN WE CAN PRESENT IT TO YOU. AND BID IT OUT. OKAY. AND IN THE EVENT THAT. SOME KIND OF WAY THESE PROJECTS REMAIN UNFUNDED, WHAT IS THE WORST DETRIMENTAL THING THAT COULD HAPPEN? WE WOULD STOP GROWING RIGHT NOW BASED ON THE GRAPH. THANK YOU. BASED ON THIS GRAPH, YOU CAN SEE WHERE OUR RED CAPACITY LINE IS. AND THE BLUE LINE IS TAKING US THROUGH ALL OF THE MAJOR PROJECTS THAT ALREADY HAVE CAPACITY. SO ANYBODY ELSE THAT'S COMING IN TO BUILD A LARGER DEVELOPMENT THAT THIS CHART IS WHY WE ON THE CAPACITY LETTERS, WHEN SOMEBODY ASKS FOR CAPACITY WHEN IT'S A LARGER DEVELOPMENT, THEY'RE GETTING A LETTER THAT SAYS YOU WILL HAVE CAPACITY IN. CURRENTLY IT'S QUARTER ONE OF 2028. SO DEVELOPERS ARE GETTING THOSE LETTERS SEEING THAT DATE GOING. WHY DO WE WANT TO COME HERE. SURE. SO IF THESE PROJECTS DO REMAIN UNFUNDED, THAT RED LINE IS NOT GOING TO MOVE ANYMORE. AND WE CAN'T TOP THAT RED LINE WITHOUT VIOLATING ORDERS. OKAY. AND CITY MANAGER, JUST TO SHIFT OVER TO YOU WITH REGARDS TO OUR CAPACITY LETTERS, IN THE EVENT THAT A DEVELOPER DOES NOT MOVE FORWARD WITH A PROJECT, ARE WE DO ARE WE LIKE PUTTING A TIMELINE ON OUR CAPACITY LETTERS? OKAY. THAT IS SOMETHING NEW THAT WE HAVE STARTED ADVISING ALL OF THE CAPACITY LETTER HOLDERS OUT THERE, IF YOU WILL, THAT THERE IS A TIME LIMIT AND IF THAT TIME LIMIT, IF THEY FAIL TO ADHERE TO THAT TIME LIMIT, THEN THEY LOSE THE CAPACITY, OKAY. BECAUSE THAT'S ONE OF THE THINGS THAT'S BEEN REALLY TAKING UP A LOT OF OUR CAPACITY BY HAVING THESE LETTERS OUT THERE FOR INDEFINITE PERIODS OF TIME. AND SO NOW THAT IS ONE OF THE THINGS THAT WE HAVE TIGHTENED UP. OKAY. I JUST HAVE TWO MORE QUESTIONS, MAYOR, WITH REGARDS TO US MAKING THE DECISION TO DO A $30 MILLION FACILITY VERSUS A $100 MILLION FACILITY, HOW LONG DO YOU THINK IT WOULD TAKE US TO OUTGROW THE $30 MILLION FACILITY? SO THE $30 [00:25:02] MILLION FACILITY IS A 1.5 MILLION GALLON A DAY TRAIN, WHICH IS EXPECTED TO JUST REPLACE THE STEEL THAT IS CURRENTLY IN PLACE. OKAY, OKAY, I GOT YOU. THAT'S FAIR. AND MY LAST QUESTION WILL SHIFT BACK OVER TO CITY MANAGER IS DO YOU FORESEE THAT WE WOULD POSSIBLY NEED TO START HAVING DISCUSSIONS IN REGARDS TO DOING A BOND BASED ON THIS INFORMATION? YES, AS A MATTER OF FACT, WE ALREADY ARE. I MEAN, WE HAVE ONE PROGRAM FOR CERTIFICATE OF OBLIGATIONS FOR THIS COMING JUNE. I MEAN, NEW BOND OR NEW BOND THAT THAT'S A CONVERSATION DEFINITELY THAT WE NEED TO HAVE. BUT I THINK AS A PART OF THAT CONVERSATION, WE HAVE TO HAVE OTHER STAKEHOLDERS AT THE TABLE, OKAY. BECAUSE WE DON'T WANT TO WE WANT TO TRY TO GAIN SOME EFFICIENCIES ANY WAY WE CAN. AND SO WE DON'T WANT TO LOOK AT THIS AS ONLY MISSOURI CITY AND IGNORE THE MUD'S, BECAUSE EACH OF THEM HAVE FACILITIES THAT ARE AGING OUT. AND DOES IT MAKE SENSE, SINCE WE'RE TALKING ABOUT THE SAME CONSTITUENTS TO GO AND EVERYBODY DOES DO SOMETHING INDIVIDUALLY THAT'S GOING TO COST SIGNIFICANTLY MORE AND CONTINUE TO CREATE THE INEFFICIENCIES THAT WE HAVE. SO WE DEFINITELY NEED TO HAVE THOSE BROADER CONVERSATIONS ABOUT HOW DO WE LOOK AT THINGS FROM A REGIONAL PERSPECTIVE AND NOT JUST FROM THE CITY, RIGHT. SO BASED ON NICHOLAS'S TIMELINE, WE'RE WE'RE UNDER A FIVE YEAR GUN. AND WITH THE WAY THE CITY THINGS KIND OF WORK IN GOVERNMENT, IT TENDS TO MOVE KIND OF SLOW. SO I'M HOPING THAT WE'RE ABLE TO GET A PLAN TOGETHER TO START MOVING THIS ALONG A LOT FASTER. YES, VERY QUICKLY, SO THAT WE DON'T HAVE TO STOP GROWING. SO I'M HOPING THAT THE NEXT COUPLE OF CONVERSATIONS WILL BE TOWARDS US MOVING FORWARD, SOME TYPE OF PLAN. AND ONE THING THAT I WOULD CAUTION IS THAT LOOKING AT CERTIFICATE OF OBLIGATION ONLY, THAT IS THE UTILITY USER FEES IS WHAT PAYS BACK THAT CERTIFICATE OF OBLIGATION UNLESS ANOTHER METHOD IS DETERMINED. SO AGAIN, THAT GOES BACK TO OUR 2900 WATER CONNECTIONS GOING TO SUPPORT THE $60 MILLION IN PROJECTS THAT ARE NEEDED. OR IS THIS GOING TO EXPAND BEYOND THOSE 2900 CONNECTIONS? OKAY. THANK YOU SO MUCH FOR YOUR REPORT. I'M SORRY IF I IF I CAN JUST ADD THIS, THIS CONVERSATION IS VERY TIMELY BECAUSE AS YOU KNOW, WE'RE ENTERING INTO THE BUDGET AND THEY'RE GOING TO BE CHOICES, WHICH IS ONE OF THE REASONS WHY I'VE ASKED EACH DEPARTMENT TO FIND 5% REDUCTIONS IN THEIR DEPARTMENT, BECAUSE WE'RE GOING TO HAVE TO CREATE OUR PRIORITIES. AND, YOU KNOW, THE TYPICAL IS TO PUT THE BURDEN FROM UTILITIES. UTILITIES ARE USUALLY ENTERPRISE FUNDS THAT YOU REGAIN THOSE COSTS THROUGH REVENUE. BUT GIVEN THE FACT THAT WE HAVE SUCH A SMALL POPULATION, THAT MAY NOT BE THE BEST APPROACH. SO WE'RE GOING TO BE EXPLORING ALL OF THOSE OPTIONS AND COMING UP WITH SOME RECOMMENDATIONS. AND IT MAY MEAN CHOICES. YOU KNOW, THAT WE USE FUNDS FOR ONE THING AND DETERMINE THE COST BENEFIT OF THAT, OR THE RETURN ON THE INVESTMENT FROM FROM USING IT FOR THESE VERSUS SOMETHING ELSE. THAT IS A HIGH PRIORITY FOR US. SO THEY'RE JUST GOING TO HAVE TO BE CHOICES THAT ARE MADE. AND SO THIS THIS BUDGET GET PREPARED. WE WILL BE HAVING THOSE CONVERSATIONS. ALL RIGHT I'M DONE. THANK YOU. OKAY. NICHOLAS, THANK YOU FOR THE PRESENTATION. GREAT INFORMATION. I MEAN, I LIKE THE FACT THAT WE'RE LOOKING 15 YEARS DOWN THE ROAD, 2040 BECAUSE IT'S GOING TO BE RIGHT HERE BEFORE WE KNOW IT. RIGHT? SO AS OUR CITY'S CONTINUING TO GROW, YOU KNOW, GROWTH IS ONE OF THE THINGS THAT WE HAVE. OUR RESIDENTS ARE TALKING TO US ABOUT NEED. BUT IF WE CAN'T MEET THE NEED, THEN THERE'S A HUGE DELAY. BUT I WANT TO FOCUS AND KIND OF GO BACK TO THE IMPACT FEES, BECAUSE WE BROUGHT UP THE 2022 IMPACT FEES. SO WHAT IS THIS LOOKING LIKE? THIS, THIS ADDITIONAL WHAT IS THE WHAT I'M SORRY IMPACT FEE. SO THE IMPACT FEES ARE CURRENTLY BEING USED TO FUND THE 2023 DEBT THAT WAS TAKEN OUT. OKAY. SO HOW MUCH OF AN INCREASE ARE WE TALKING ABOUT WITH THE IMPACT? I DON'T KNOW THAT WE SO I DON'T KNOW THAT THERE'S GOING TO BE SO THE WAY THAT THE IMPACT FEES WORK IS A STUDY HAS TO BE DONE. SO IF IT IS DECIDED THAT WE ARE NOT GOING TO DO ANY MORE LINE PROJECTS, THEN THE LINE PROJECTS WOULD GO OUT. WE WOULD ALSO PUT IN ANY ADDITIONAL PROJECTS THAT WEREN'T IN THE PREVIOUS, AND THEN THAT STUDY WOULD HAVE TO BE DONE. THAT'S NOT SOMETHING THAT THAT I CAN TALK TO RIGHT NOW. SURE. AND WE TALKED ABOUT TWO DIFFERENT TYPES OF FEES USER FEE AND IMPACT FEE. YES. CORRECT. SO THE USER FEES AFFECTING THE RESIDENTS AND WHOEVER THAT'S USING IT. AND THEN THE IMPACT FEE WILL BE PEOPLE WHO WAS TRYING TO COME IN HERE AND BUILD IT. CORRECT? CORRECT. SO I GUESS WHAT WE'RE TRYING TO GROW, YOU KNOW, MY THOUGHT PROCESS IN THIS IS IF THE IMPACT FEE IS SO HIGH, IF, IF I'M TRYING TO DEVELOP A, I DON'T KNOW, MULTIFAMILY OR WHATEVER IT IS, WHY WOULD I [00:30:02] STILL COME HERE? RIGHT? BECAUSE THE FEE IS SO HIGH. SO I GET THE FACT THAT THE OTHER SIDE THAT, YOU KNOW, YOU'RE TALKING ABOUT, WELL, IF WE WANT GROWTH, WE GOT TO HAVE, YOU KNOW, X AMOUNT OF GALLONS TO MAKE IT WORK. BUT SOMETIMES YOU CAN GO THE OTHER WAY, THE FEE IS WAY TOO HIGH. AND THEN YOU'RE GOING TO TURN AROUND AND SAY, I'M NOT GOING TO GO TO MISSOURI CITY BECAUSE I CAN GO TO ANOTHER CITY, AND THOSE FEES WILL BE MUCH LESS RIGHT. SO THAT'S A YOU KNOW, THAT'S A CONVERSATION THAT I'M LOOKING TO, TO HAVE. AND THEN IN 2022 WHEN WE RAISED THE IMPACT FEE, I WANT TO SAY THERE WAS A PERSON WHO'S DOING THE PROJECT THAT WAS NOT GRANDFATHERED IN OR WAS IN THE MIDDLE OF IT, OR THEY DIDN'T GET SOME KIND OF LETTER, OR I FORGOT WHAT THE EXACT ISSUE WAS, AND THAT CAUSED A BIG HAVOC BACK AND FORTH. AND SO WHILE WE'RE THINKING OF THIS, ESPECIALLY THAT THAT AFFECTS THE IMPACT FEE, WE WANT TO MAKE SURE THAT WE'RE ADDRESSING AT LEAST SOME OF THOSE THINGS OR THINKING THROUGH IT. AND THEN THE LAST THING I HAVE IS YOU SAID, HOW ARE WE COMPARING TO OTHER CITIES? AND I KNOW MISSOURI CITY IS DIFFERENT BECAUSE OF OUR MUTTS. I THINK COUNCIL MEMBER BONNIE OR TALKED ABOUT, HOW ARE WE HAVING THESE CONVERSATIONS WITH THE MUD OPERATORS AT THE SAME TIME THAT WE'RE HAVING THESE DISCUSSIONS HERE? AND IF, YOU KNOW, IF WE'RE GEARING TOWARDS THE 30 MILLION PLANT VERSUS 100 MILLION, AND HOW ARE THEY, HOW ARE THEY CONTRIBUTING TO THIS AND IF, IF AT ALL? BECAUSE AT THE END OF THE DAY, IF SOMETHING BREAKS AND THEY DON'T HAVE THE MONEY, WELL, IT'S OUR CITIZENS, RIGHT? THEY'RE GOING TO COME OVER HERE AND ASK FOR THE MONEY ANYWAY BECAUSE WE CAN'T JUST TELL THEM THAT. WELL, YOU HAVE MUD OPERATORS. SORRY. YOU KNOW, THAT DOESN'T WORK LIKE THAT. SO I KNOW THAT WE DON'T HAVE TO MAKE A DECISION HERE. THESE ARE DISCUSSIONS. BUT BUT THESE ARE THE DISCUSSIONS. I WOULD SAY THE STAFF NEEDS TO ALSO THINK IT THROUGH AND COME BEFORE. AND I WOULD LOVE TO SEE HOW THE FINANCE ASPECT OF THIS, THE NUMBERS, WHAT THAT LOOKS LIKE AND HOW DOES THAT AFFECT US AND WHAT ARE WE CONTRIBUTING? WHAT IS OTHER PEOPLE CONTRIBUTING. BECAUSE, YOU KNOW, TODAY IF SOMEONE'S COMING IN HERE TO DEVELOP WHATEVER IT IS, A HOUSING PROJECT OR, OR ANYTHING, THEY'RE, THEY'RE LOOKING AT THEIR IMPACT FEES AS WELL. SO, SO THERE'S THERE SHOULD BE SOME DISCUSSIONS THAT WE NEEDED TO HAVE. AND I GUESS I'M UNDERSTANDING YOU'RE PRESENTING THIS TO US TODAY. SO THIS WAY WE'RE AWARE OF IT OR OR WE STARTED TO HAVE THIS. ARE WE GOING TO HAVE MORE DISCUSSIONS. ABSOLUTELY. BECAUSE THIS IS NOT A ONE AND DONE. THIS IS GOING TO INVOLVE MANY DIFFERENT DISCUSSIONS AND APPROACHES TO TRY TO MAKE SURE THAT YOU FULLY UNDERSTAND WHERE WE ARE AND THE IMPACTS OF WHAT WE'RE TRYING TO DO. OKAY. ALL RIGHT. I WILL YIELD BACK I RECOGNIZE AND COUNCIL MEMBER. THANK YOU. MAYOR, I HAD A QUESTION. I'LL START OFF WITH THIS ONE BECAUSE I DON'T WANT TO LOSE IT. YOU MENTIONED MUD 26 APPROACHED THE CITY ABOUT SOMETHING RELATIVE TO SOME SOME NEEDS THEY HAD. YES. BEFORE YOU. WELL, REMIND ME WHAT THEY THEY APPROACHED US FOR AGAIN, THE WASTEWATER TREATMENT PLANT. SO THEY HAVE A SMALL WASTEWATER TREATMENT PLANT THAT ONLY HAS ONE TRAIN, SO THEY CAN'T TAKE IT DOWN TO DO MAINTENANCE. THEY'VE OUTGROWN THE FACILITY AND THEY'RE SENDING FLOWS TO QUAIL VALLEY. AND SO THEY'RE LOOKING AT WHAT ARE THEIR OPTIONS. THEY DON'T HAVE ENOUGH PROPERTY TO EXPAND THAT FACILITY. SO THEY'RE LOOKING. DOES IT MAKE SENSE TO CONTINUE TO SEND FLOWS TO QUAIL VALLEY? DOES IT MAKE MORE SENSE FOR A NEW FACILITY IF QUAIL VALLEY IS 50 YEARS OLD AND GETTING CLOSE TO BEING AT ITS PERMIT LIMIT, NOT BEING ABLE TO MEET FUTURE REGULATIONS OR FUTURE ANTICIPATED REGULATIONS, WOULD IT MAKE MORE SENSE TO TEAM UP WITH THE CITY FOR A REGIONAL FACILITY IN MUSTANG BAYOU? SO WHAT ARE THEY BUILDING RIGHT THERE AT COURT AND TEXAS PARKWAY? THAT IS RIGHT RIGHT NEXT TO THE IT'S A LIFT STATION. SO LIFT STATION. CORRECT. SO AND THEY THEY IN THERE, THEY HAVE LAND THAT THEY ACQUIRED THAT WE APPROVED FOR THEM FROM A REZONING STANDPOINT RIGHT THERE BEHIND THE WELLS FARGO BUILDING. AND IN THOSE PLANS THEY TALKED ABOUT BUILDING A WATER INFRASTRUCTURE TO ADDRESS SOME OF THEIR FUTURE NEEDS. THEY HAVE PLENTY OF LAND. I WOULD WANT TO SAY THAT THAT'S LOCATED THERE. DO THEY NOT HAVE PLANS TO DO ANYTHING? SO I DON'T KNOW. SO IT WAS THE ENGINEER THAT CAME IN AND HAD A MEETING WITH US, OF COURSE. AND WHEN THE WHEN THE ENGINEER MET WITH US, HIS COMMENT WAS, THERE'S A RUMOR THAT Y'ALL ARE LOOKING AT POSSIBLY HAVING A REGIONAL PLANT. WE'RE TRYING TO DETERMINE WHAT IS THE BEST WAY FOR US TO MOVE FORWARD. IS IT THAT WE OWN OUR OWN FACILITY? IS IT THAT WE SHARE A FACILITY WITH ANOTHER MUD DISTRICT, OR IS IT THAT WE PARTNER WITH WITH THE CITY FOR A [00:35:02] REGIONAL FACILITY? RIGHT NOW IT'S JUST A CONVERSATION. IT'S THERE'S NOTHING IN STONE. THERE'S NOTHING IN WRITING. WELL, I HEAR YOU, BUT CONSIDERING THAT THEY HAVE THAT LAND IN THEIR IN THEIR ORIGINAL PLANS, THEY WERE LOOKING TO DO SOMETHING FROM LIKE A SOFTBALL BASEBALL FIELD AS WELL AS A SOCCER AND A BASKETBALL COURT AND SOME OTHER STUFF. BUT THEY ALSO HAD PLANS IN THE FAR BACK, CLOSER TO WHERE THE WELLS FARGO IS. AND I DON'T KNOW IF YOU'RE FAMILIAR WITH WHAT I'M TALKING ABOUT, BUT THEY WERE PUTTING A WATER TREATMENT PLANT THERE. THAT WAS THEIR PLAN. SO I DON'T UNDERSTAND. SO WAS IT DRINKING WATER OR WASTEWATER? AND I DON'T I DON'T KNOW SPECIFICALLY, BUT IT WAS TO ADDRESS SOME OF THEIR, THEIR NEEDS FROM A WATER PERSPECTIVE. GOOD EVENING, MAYOR AND COUNCIL. WHAT NICHOLAS PRESENTED AND I'LL GET TO YOUR QUESTION IS TWO THINGS. ONE, WE NEED TO LOOK AT OUR SHORT TERM PROJECTS TO KEEP THE GROWTH GOING. THAT'S THE PROJECTS THAT HE PRESENTED AND THE LONG TERM PROJECTS. AND THIS DISCUSSION GOES INTO YOUR LONG TERM PROJECT. SHORT TERM, HE PROPOSED A 30 MILLION PLAN THAT WE NEED TO BUILD TO KEEP THE GROWTH GOING, AND WE NEED TO BUILD THAT. THAT IS THE SHORT TERM. THE LONG TERM IS THE $100 MILLION. THAT IS, AS HE SAID, IT'S INEFFICIENT TO OPERATE 12 WASTEWATER PLANTS HERE. WE NEED TO REGIONALIZE WE NEED TO REGIONALIZE BECAUSE THE OTHER PLANTS ARE GETTING OLD. THERE IS NEW REGULATIONS COMING THERE. AND BOTTOM LINE, WE GOT TO BE EFFICIENT TO OUR RESIDENTS. SO IN ORDER TO BUILD A $100 MILLION PLANT, YOU NEED TO WORK WITH YOUR PARTNERS, WHICH IS SOME OF THE PARTNERS THAT NICHOLAS HAS BEEN ATTENDING THE MEETINGS AND WORKING WITH THAT, FOR EXAMPLE, 26 TO SEE WE CAN TAKE ALL THESE FLOWS AT SOME POINTS, CONSOLIDATE AND SEND TO A TREATMENT PLANT, WHICH WILL BE THE VISION 2040, WHICH IS THE ULTIMATE BUILD OUT. SO WE ARE WORKING OF COURSE, OUR WE ARE LASER FOCUSED ON THE SHORT TERM BECAUSE WE WANT TO KEEP THE GROWTH GOING AND NOT STOP THE GROWTH. THAT'S OUR IMMEDIATE FOCUS. BUT AT THE SAME TIME, WE'RE ALSO LOOKING AT THE LONG TERM VISION, WHICH IS TALKING TO ALL THESE MUDS, SAYING THAT, HEY, IT MAKES GOOD SENSE FOR YOUR RESIDENTS AND OUR RESIDENTS TO BUILD THIS ULTIMATE PLANT AND CONSOLIDATE WASTEWATER OPERATIONS. HOW CAN WE DO THAT? AND HE'S JUST STARTED THOSE CONVERSATIONS WITH SOME OF THOSE MUDS. AND THAT'S WHAT IS HAPPENING. SO I THINK THAT AND THANK YOU FOR THAT, BECAUSE I THINK THAT LEADS INTO MY SECOND POINT AND QUESTION IS HAVE WE PUT TOGETHER A PLAN? I MEAN, YOU PRESENTED US A CHART BASED OFF OF THE 30 MILLION FROM A PLAN PERSPECTIVE OVER FIVE YEARS. BUT WHAT ABOUT THE 100 MILLION? IF WE REALLY FEEL LIKE THAT'S THE DIRECTION THAT WE NEED TO GO, THEN WE NEED TO LOOK AT WHAT THAT'S GOING TO COST AND ALSO PLAN TO ADDRESS IT AS WELL AS THE TIMELINE. GREAT QUESTION. WE THINK WE HAVE A PLAN OF HOW WE NEED TO EXPAND. WE HAVE THAT NOW. HOW DO WE BUILD THAT? HOW DO WE DO? WE HAVE A FINANCING PLAN HOW TO GET THERE AND BUILD THAT. WE DO NOT HAVE THAT BECAUSE WE'VE JUST STARTED THAT CONVERSATION. AND I THINK ONE OF THE QUESTIONS THE COUNCIL ASKED WAS, IF YOU WANT TO BUILD A 100 MILLION PLANT AT 2040, HOW DO YOU GET THERE? SO THAT IS SOMETHING THAT WE'RE WORKING WITH THE PARTNERS AND SEEING HOW WE CAN DO THAT. IT WILL INVOLVE MULTIPLE PARTIES, MULTIPLE STAKEHOLDERS, DIFFERENT FUNDING OPTIONS. THAT IS NOT SOMETHING WE DON'T HAVE NOW. BUT THIS THIS INTENT, THE INTENT OF THIS PRESENTATION WAS TO TELL YOU WHAT THE SHORT TERM PLANS ARE, WHAT THE LONG TERM PLANS ARE, WHAT THE SHORT TERM CONSTRAINTS ARE, AND THE LONG TERM CONSTRAINTS ARE. THIS IS NOT A ONE NIGHT DISCUSSION. WE DIDN'T GET HERE ONE NIGHT. IT TOOK US 40 YEARS, 50 YEARS TO GET HERE. BUT OVER THE COURSE OF THE NEXT FEW MONTHS, WE'LL BE PRESENTING TO YOU THOSE PLANS AS. EVERYBODY RECOGNIZES. AND COUNCIL MEMBER EMERY. YEAH, MOST OF MY QUESTIONS HAVE BEEN ASKED, SO I'M STILL CONFUSED. SO. AND AGAIN, I KNOW THAT, YOU KNOW, THE $30 MILLION APPROACH. YOU KNOW, AS I UNDERSTAND, WOULD ACCOMMODATE THE EXISTING COMMITMENTS THAT WE HAVE ALREADY FROM FROM DEVELOPERS. IS THAT CORRECT? OR THE. I'M SORRY, THE. CAN YOU REPEAT YOUR QUESTION? OKAY. YOU KNOW, IF YOU ONE THING IS DO WE HAVE THE CAPACITY TO HANDLE THE EXISTING COMMITMENTS THAT WE'VE GIVEN TO DEVELOPERS OR TO BUSINESSES? AND WILL THE $30 MILLION APPROACH ACCOMMODATE THEIR NEED. SO INITIALLY, YES. SO RIGHT NOW AND EVEN ON THIS CHART, THIS THIS IS THE DRINKING WATER SIDE OF IT RIGHT NOW THE WASTEWATER CAPACITY IS HIGHER. SO WE'RE ABLE TO ACCOMMODATE MORE IN WASTEWATER THAN WE ARE IN WATER. BUT ONE OF THE THINGS THAT THAT A TRAP THAT THAT HAS BEEN FALLEN INTO BEFORE IS USED TO WASTEWATER WAS THE LIMITING FACTOR. AND SO THEY PUT EVERYTHING INTO WASTEWATER. AND NOW ALL OF A SUDDEN WATER IS TRYING TO CATCH BACK UP. SO WE HAVE TO BALANCE THIS OUT. WE [00:40:03] CAN'T JUST LOOK AT WATER BECAUSE THEN WASTEWATER IS GOING TO BECOME THE ISSUE. YEAH. ALL RIGHT. YOU HAVE ONE. NO THAT WAS MY QUESTION. ALL RIGHT. SO I GUESS CITY MANAGER, WHEN WE LOOK AT NICHOLAS I LOVE THE FACT THAT YOU'RE HERE IN YOUR EXPERTISE MEANS A LOT TO CITY. MISSOURI CITY. BUT I GUESS MY QUESTION IS, HOW DID WE GET HERE, EXACTLY? BECAUSE WE'RE SITTING HERE IN 2025 AS A COUNCIL, AND THIS IS BEFORE US. AND HAVE WE NOT HAD THESE DISCUSSIONS WITH THE COUNCIL THAT WAS HERE TEN YEARS AGO? AND THEN THE ONES THAT WAS HERE 20 YEARS AGO. SO THIS DIDN'T HAPPEN OVERNIGHT. I'VE BEEN. IT'S NOT JUST THAT FROM AFTER POST COVID THAT WE GOT ALL OF A SUDDEN WE'RE JUST BLOWING UP. I MEAN, IT'S JUST BEEN IT'S KIND OF BEEN SET THAT WAY. SO YOU DON'T HAVE TO ANSWER IT. BUT I GUESS THAT THOSE ARE THE CONVERSATIONS THAT I THINK WE NEEDED TO HAVE, BECAUSE I KNOW THIS DIDN'T HAPPEN. AND WHILE THE MUDS ARE TRYING TO, YOU KNOW, PROTECT AND, YOU KNOW, THEY WANT TO GOVERN THEMSELVES, WELL, THESE DISCUSSIONS HAVE TO HAVE WHETHER THEY WANT IT OR NOT BECAUSE, YOU KNOW, YOU EVEN THE VALLEY I'M TALKING ABOUT, YOU SAID 40 YEARS OR 50 YEARS UNDERGROUND. I MEAN, MY CONCERN IS FIVE YEARS DOWN THE ROAD IF THERE'S A PROBLEM AND THE AND THEY DON'T HAVE THE MONEY OR THEY JUST HAVE SOME OF IT, WE STILL HAVE TO GET IN THERE AND FIX IT BECAUSE PEOPLE NEED WATER AND THEY NEED THEIR WASTEWATER TO GO AWAY. RIGHT? I MEAN, IT'S NOT. SO, YOU KNOW, 2040 PLAN IS GREAT. I HOPE WE CONTINUE THIS CONVERSATION AND NOT JUST HAVE IT THIS ONE TIME, YOU KNOW, ON A SPECIAL MEETING. BUT I THINK WE NEED TO HAVE THIS IF THIS IS A FOCUS OF THAT'S MOVING FORWARD, BECAUSE I KNOW WE DIDN'T GET HERE OVERNIGHT AND THIS IS THE FRUSTRATION THAT I THINK, YOU KNOW, WE ALL GET BECAUSE WHEN YOU TALK TO THE MUDS THEY WANT THEY THINK THAT THE CITY IS THE GIANT ELEPHANT THAT THEY WANT DON'T WANT TO HAVE ANYBODY ANYTHING TO DO WITH IT. BUT WE HAVE TO HAVE THESE CONVERSATIONS BECAUSE THIS IS NOT HELPING, BECAUSE THE MINUTE SOMEBODY FLUSH THEIR TOILET AND THE WATER IS BACKING UP, AND THEN IF THEY CAN'T GET DRINKING WATER, GUESS WHAT? YOU KNOW, YOU CAN CALL YOUR MUD ALL DAY LONG AND TELL THEM THAT WE'RE YOU KNOW, THEY'RE WORKING ON IT, BUT THEY'RE GOING TO BE EXPECTING THE CITY, CITY OF MISSOURI CITY TO FIX THAT PROBLEM. SO WE GOT TO HAVE THESE CONVERSATIONS. AND I WOULD HOPE, JOYCE, I DON'T KNOW HOW OFTEN. JOYCE, SHASHI, YOU GUYS, AS A LEGAL TEAM AND DIVISIONS, MEET WITH THESE OPERATORS AND THEIR ATTORNEYS AND ALL OF THIS. AND I THINK THIS CONVERSATION MUST GO ON AND TO MAKE SURE THAT WE'RE NOT WHEN WE GET TO THE POINT OF 2040, WE'RE BACK AT THE SAME CONVERSATION THAT WE'RE HAVING, BECAUSE AT THE END OF THE DAY, YOU KNOW, GROWTH IS ONE THING THAT'S GREAT. IT'S WONDERFUL. BUT AT THE SAME TIME, IF YOU'RE SAYING WE CAN'T, WE DON'T HAVE THE CAPACITY. BUT ALSO YOU'RE SAYING YOU WANT THE IMPACT FEE TO GO UP, AND THEN PEOPLE ARE GOING TO LOOK AT SAYING, IF THE IMPACT FEE IS SO HIGH HERE, WHY WOULD I WANT TO BUILD SOMETHING HERE? SO I SEE THIS THIS IS GREAT DISCUSSION. I SEE THIS AS SEVERAL COMPONENTS THAT WE NEED TO BREAK DOWN WITH FACTUAL NUMBERS AND MAKING US UNDERSTAND IF WE'RE TRULY GOING TO BE THINKING ABOUT IN THE FUTURE AND MAKING DECISIONS. SO THIS WAY, 15 YEARS DOWN THE ROAD OR 20 YEARS DOWN THE ROAD, PEOPLE WHO SERVE THIS CITY WOULD BE IN A BETTER POSITION THAN WHAT WE ARE TODAY. OKAY. RECOGNIZING COUNCILMEMBER RILEY, THANK YOU. MAYOR, I JUST HAD A QUICK QUESTION IN REGARDS TO THIS MAY BE USED CITY MANAGER, BUT WHEN CAN WE SEE A FINANCE TIMELINE TO ADDRESS THIS AS FAR AS SHORT TERM AND LONG TERM, I WOULD SAY WE STILL HAVE SOME WORK TO DO IN TERMS OF EVEN BEGINNING TO UNDERSTAND WHO THE STAKEHOLDERS THAT ARE WILLING, BECAUSE A LOT OF THAT INFORMATION IS NOT AVAILABLE TO US IN TERMS OF THE AGE OF THE FACILITY. STRATEGICALLY, WE'RE LOOKING AT THE FACT THAT ALL THE FACILITIES ARE NEARING THAT AGE WHERE THEY'RE GOING TO NOT MEET THE REQUIREMENTS. AND SO WITH THAT, JUST AS A FOCUS ON REGIONALIZING FACILITIES THAT WORK FOR ALL OF US, THAT'S SOMETHING THAT WE'RE GOING TO HAVE TO START HAVING THOSE CONVERSATIONS WITH. SO IN TERMS OF THE COST AND FINANCIAL IMPLICATIONS, WE WILL CONTINUE TO BUILD THOSE PIECES AND PARTS AS WE GET INFORMATION. BUT TO HAVE A DEFINITIVE TIMELINE ON THAT, I CAN SAY WITHIN A MONTH WE WANT TO COME BACK AND HAVE ANOTHER CONVERSATION ABOUT WHERE WE ARE ON CERTAIN THINGS AND WHAT THAT LOOKS LIKE. BUT I WOULD THINK BY THE END OF THE YEAR, END OF THE CALENDAR YEAR, [00:45:02] WE WOULD HAVE MORE INFORMATION. OKAY. AND WHICH LEADS ME TO MY NEXT QUESTION BETWEEN YOU AND NICHOLAS. WITH THAT BEING SAID, THE AGING INFRASTRUCTURE, WHAT'S GOING ON? WHAT IS OUR CONTINGENCY PLAN AS THE CITY IF FOR SOME REASON THESE MUDS FAIL, THEIR THEIR RESIDENTS, WHICH ARE RESIDENTS, WHAT ARE WE WHAT ARE WE PREPARED TO DO TO STEP IN BECAUSE WE HAD A SITUATION LIKE THIS TO HAPPEN LAST YEAR, AND LEGALLY, WE WERE NOT ABLE TO ASSIST THE WAY WE WANTED TO. AND SO WHICH LEADS ME TO A CONCERN, WHICH IS PROBABLY ALL OF OUR CONCERN IS WHAT HAPPENS IN THE EVENT THAT SOMETHING SERIOUS. WHAT IS OUR CONTINGENCY PLAN AND HOW ARE WE ABLE TO STEP IN IF WE'RE EVEN ABLE TO AT ALL? WELL, AND THAT'S THE THAT'S THE KEY QUESTION. AND THAT'S FROM LEGAL AND MYSELF. OUR TEAMS ARE HAVING TO LOOK AT THAT BECAUSE ULTIMATELY THEY ARE RESIDENTS OF THE CITY. ANY WAY YOU SLICE IT, THEY ARE RESIDENTS OF THE CITY. AND YET AND STILL WE HAVE THESE AUTHORITIES IN PLACE THAT LIMIT THE CITY'S ABILITY TO TAKE ACTION. SO IT IS A CONVERSATION THAT WE'RE GOING TO HAVE WITH OUR STAKEHOLDERS, AND WE'VE JUST GOT TO COME UP WITH SOME CONTINGENCY PLANS, AND HOPEFULLY EVERYONE WILL SEE THE BENEFIT OF JOINING FORCES AND NOT HAVING THESE REPETITIVE TYPES OF FACILITIES THAT END UP COSTING MORE. AND LOOK AT IT FROM A REGIONAL PERSPECTIVE. WELL, THAT DEFINITELY IS THE HOPE THAT THEY WOULD LOOK AT IT FROM THAT PERSPECTIVE. NOT ALL MUDS ARE CREATED EQUALLY RIGHT. AND SO I WOULD DEFINITELY URGE YOU, NICHOLAS, IN CITY MANAGER, FOR YOU GUYS TO COME UP WITH A CONTINGENCY PLAN, ESPECIALLY WHEN WE KNOW WHAT WE KNOW NOW, BECAUSE IF WE'RE LOOKING AT FIVE YEARS DOWN THE LINE, SOMETHING COULD HAPPEN IN A YEAR VERSUS THE NEXT FIVE YEARS. AND SO WE'RE ALREADY OUTGROWING OURSELVES. AND SO IF WE'RE TRYING TO PLAN FOR TEN YEARS, 20 YEARS, WE'VE GOT TO JUST SEE A PLAN FOR TWO YEARS FROM NOW. SO I URGE YOU TO COME UP WITH SOME TYPE OF A CONTINGENCY PLAN TO ADDRESS THAT IN THE EVENT WE'RE IN THAT SITUATION. ABSOLUTELY. THANK YOU. OKAY, SO, CITY MANAGER, THERE'S NO ONE ELSE. I SIGNED UP ONE MORE TIME TO JUST TO MAKE A POINT. I UNDERSTAND THAT CITY STAFF, ENGINEERS AND OTHERS, THEY LEAVE. IT COULD BE BETTER OPPORTUNITY. IT COULD BE WHAT HAVE YOU PROMOTIONAL BASIS. WE GET IT. BUT HOW DO WE CONTINUE TO KEEP THESE WHAT WE TALKED ABOUT TODAY IN LINE WITH 2040, IT'S ALL DOCUMENTED AS PART IT IS ALL DOCUMENTED BECAUSE WE WANT TO MAKE SURE THAT THESE CONVERSATIONS ARE CONTINUING, AND THEN WE DON'T HEAR NOTHING FOR FIVE YEARS. AND THEN ALL OF A SUDDEN, IF YOU'RE STILL HERE, IF WE'RE STILL HERE, HE'S COMING BACK IN HERE AND SAYING THAT WE TOLD YOU SO, RIGHT? BUT IT'S ALL DOCUMENTED AND WE WILL KEEP IT IN FRONT OF YOU TO MAKE SURE YOU DON'T LOSE SIGHT OF IT, THAT THESE THESE ARE THE STEPS AND YOU WILL EVEN HEAR TONIGHT STEPS ON THE CONSENT AGENDA THAT ARE MOVING US TOWARDS THOSE GOALS. OKAY. ALL RIGHT. SEEING NO ONE ELSE ON THE QUEUE. THANK YOU NICHOLAS. APPRECIATE YOUR HELP. THANK YOU, THANK YOU. ITEM NUMBER FIVE ARE CLOSED. EXECUTIVE SESSION. THERE IS NONE. THE TIME IS 620. HEARING NO OBJECTIONS, THIS MEETING IS ENDED AND WE WILL COME * This transcript was compiled from uncorrected Closed Captioning.