City Council - Regular Meeting

Andrew is his name. I wasn't there trying to trying to [clears throat] deal. Good luck with that. We need a senior citiz.

Let's pray. Heavenly Father, thank you for the day. Thank you for every blessing that's ours. Thank you for this great country that we live in. God, we just lift up our leaders to you, our military to you. Watch over them. God, just guide us to now as tonight as we deal with your business. just uh let us look to you for guidance in everything we do in Jesus name. Amen. Amen. I aliance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible with liberty and justice for all. Miss Lisa, would you call the role, please? Here. Bradley here. King here. Ringinger

here. Rachel Thompson. She's in New Zealand. Thompson. Right. New Zealand. She's somewhere. No, we're not. Uh there's two items for the uh agenda we need to add. It would be item L, the commission nominees, and then item M, CCU commission ordinance that the commission took up with. No objection. A motion for the agenda with those added items. So move. Second. Second.

Baker, yes. Bradley, yes. King, yeah. Risinger. Yes. Robert Thompson. Yes. Uh, we have a motion for approval of the minutes. So, move. Second. Second. Miss Lisa. Bradley? Yes. King? Yes. Risinger? Yes. Chrystal Thompson? Robert Thompson? Yes. Baker. Yes. Thank you, council. There's no unfinished business. Item one is going to be the 2025 asset deletion list. There's one change we need to make it to it, and that is to the Equinox. We're actually going to keep that on the list, but outside of that, Mario, any questions? We'd like for approval of that deletion list.

Brit went through it and he kind of We don't necessarily just want to get rid of stuff. You'd be getting rid of stuff. We can maintenance it and keep it. We're going to, but um after thorough review, we think that that those items cost [clears throat] us more than keep them. So, we are keeping the Equinox. We are. So, we'd like to keep that. One, we didn't think we could get the parts for it, but Brit found them and think we can put it back in service and Lisa and Jennifer really like that vehicle. So, think smaller. Is there a motion for approval? I'll

make a motion to approve it with the deletion with the with the [cough] with the exception of the equinox. Yes. So moved. Is there a second? Second. Miss Lisa. King. Yes. Ringinger. Yes. Robert Thompson. Yes. Baker. Yes. Bradley. Yes. Thank you councel. Item B is going to be the cyber policy. Sorry, AI policy. Yeah, Miss Wette, you worked so hard on that. You want to come up and talk to us a little bit?

So on on the AI policy, a new law was passed in 2025, Act 848. Um it says that we have to have a AI policy on the books. So with that, addition to the policy, we'll also be doing training for all the staff on that. So y'all got a copy of it. I think I sent you guys copy to review last month and it's been checked by Clay. So just the way of the future. So many people nowadays use it for the wrong purpose.

You have to have a policy in place. So I'll make a motion we approve the policy for AI. So move. Second. Miss Lisa. Risinger. Yes. Robert Thompson. Yes. Baker. Yes. Bradley. Yes. King. Yes. Thank you council. The next item is going to be the cyber security. I get ahead of myself. Cyber security. Along with the AI we need to go ahead and do a cyber security policy. And again I will also do training with staff for that. This is also in conjunction with that act 489.

It is not um but it is recommended by the municipal league that we do have a cyber security policy. [snorts] Make a motion we approve the cyber security policy. Okay. Second. Second. Miss Lisa, Robert Thompson, yes. Baker, yes. Bradley, yes. King, yes. Risinger, yes.

Thank you, council. Uh, Miss Lisa, when you're ready, could you read the ordinance? Uh, it's going to be the ordinance to wave bidding for the tractor mower parts. ordinance to competitive bidding requirements for the purchase of a VIN track tractor. Whereas the city of council of the city of Clarksville, Arkansas desires to purchase a brack tractor for the Clarksville parks department. Whereas the requirements of competitive bidding are neither practical nor feasible. And whereas the city's authorized and empowered under the provisions of Arkansas code annotated section 14-58-303 B2B to wave competitive bidding requirements in situations where such process is not practical or feasible. and now therefore be ordained by the city council of the city of Clarksville, Arkansas. Section one, the city hereby finds that competitive bidding is neither feasible nor practical in the current current circumstance of the purchase of the above reference tractor due to a set tractor being available under state bid pricing and the supply said tractor being limited in distribution from the manufacturer to dealerships. Section two, under the authority of Arkansas code annotated 14-58-303 B2B, the city is hereby way competitive bidding requirements in connection with the purchase of one vent track tractor. Section three, the city hereby approved the expenditure not to exceed 43,79251 from the park sales tax fund payable to river valley tractor for the purchase of one vent track tractor. Section four, all ordinances, resolutions, and parts that are in conflict here with are hereby repealed to the extent of such conflict. Section five emergency clause. This ordinance be necessary to secure the purchase of a vent track tractor which is needed by the Clarkville parks department is grateful for the effective operation of the city of Clarksville and to aid in ensuring the public peace, health and safety of the citizens of Clarksville. The emergency is hereby declared that this ordinance shall become effective immediately upon passage. Stanley, you want to speak to that?

Yeah, this mower, it's TR tractor/ mower. We have one just like we've had for 10 years. Very dependable mowers. You can, it's like a Bobcat. You can get multiple different attachments for it. This is a mower we need for the parks for the hillsides mowers on the new ball field. That's mainly where it will be. Those slopes are pretty steep and then has six wheels and four-wheel drive. It keeps it from tearing up and keeps the guys upright, not on their top. Uh it like I said they're very dependable mowers. That's source well and state bids you have in front of you. The source well was actually a little cheaper than the state bid. Um and you know need to pass it as as soon as we can just you know we'll have it for mowing season which is coming upon fast. We like I said we have one for street department but when you share those two and all the slopes and stuff we got going to wear one out real quick.

You need to make sure legislative audit knows we did that. Ours is cheap ours is cheaper than theirs. [laughter] a question. Yes, sir. U the canopy and the fan for the canopy and our master mechanic over our master mechanic does not like to do anything like that where it's somebody's life. We've asked him to do that stuff for tractors before. He'd just soon purchase something and somebody else be responsible for that. Understood. For the liability. Yes. Yeah. Any other questions? Is there a motion to suspend the rules and place it on its second reading? So move. Second.

Second. Miss Lisa. Baker. Yes. Bradley? Yes. King? Yes. Risinger? Yes. Robert Thompson? Yes. Could you read by title, please? Anointing to weigh the competitive bidding requirements for the purchase of a vent track tractor. Is there a motion to suspend rules and place on this third reading? So move. Second. Second, Miss Lisa Bradley, yes. King, yes. Risinger, yes. Robert Thompson, yes. Baker, yes. Could you read by title, please? An ordinance to weigh the competitive bidding requirements for the purchase of a Ventra tractor. Is there Is there a motion to adopt the ordinance?

So moved. Second. Second, Miss Lisa King. Yes. Rosinger. Yes. Robert Thompson. Yes. Baker. Yes. Bradley. Yes.

Yeah. Is there a motion to approve the emergency clause? Second. Second. [laughter] Miss Lisa Risinger. No. Robert Thompson? Yes. Baker? Yes. Bradley? Yes. Yes. King. Yes. Okay. Thank you, council. Thank you. And we thank you. You want Mayor Morgan for the next? Uh, yes, Miss Lisa. Uh, could you read that resolution to apply for the GAGP grant?

Be resolved by the city council of Clarksville, state of Arkansas. a resolution to be entitled to resolution authorizing the submittal of an application to Arkansas Community Assistance Grant Program for the construction of a public outdoor rodeo arena and committing matching funds. Whereas the city of Clarksville desires to construct the public outdoor rodeo arena by repurposing an existing ball field baseball field to enhance community recreation, preserve local western heritage and support youth development. And whereas the Arkansas Community Assistance Grant Program provides funding for such community and economic development projects. And whereas the city has identified up to $250,000 in matching funds, matching kind donations to meet the program requirements. Now therefore, be it resolved that the city council of Clarksville, Arkansas, that the city council hereby authorizes the mayor of Clarksville, Clarksville to submit or authorize the submission of an application to the Arkansas Economic Development Commission for up to $550,000 in community assistance grant program, CAG funds. [clears throat] Two, the city hereby commits $250,000 in matching funds as described in the application. Three, the city agrees to comply with all CAGP requirements, including reporting and audits. Morning. Sally, you want to talk about what we're talking what we're doing. And by the way, we're just asking to permission to apply for it. There's no we don't know any financial monies yet. Sogan still have to come back to

Morgan's done the leg work on writing here. And what we're thinking is we have what three four big fields including that field in Clarksville. You don't use that many big baseball fields. You use more of the little kids. So it's not like we're gaining anything to maintain. We're going to maintain that spot regardless. But you know, if we build an arena there, we've got the lights, we've got the concession, I think we're missing a good chance not having it there to bring stuff into Clarksville. Um, like I said, it'd probably be less maintenance for us as far as mowing and stuff anyway. If we can get these Lance, it' be or Grant, it would be a good use of the fields. And if you did, Freeman told me he he'd ride a bull. I've asked around and I've had a lot of good feedback on it. I really a lot of

What about What about the people live up there? Well, I mean, we used to have one there when they lived there before. I know what they didn't like. I always heard that. Do they like the baseball field? I mean, there's always going to be something say anything about the baseball field. Where we having the fair? I know they don't like the fair either. Like I'm saying, I'm just saying that the people that live up there. Like I said, this will be just to try and apply for the grant. See if we can even get it. May not even get it. Uh but you know, what are we going to do with that space? We're just going to leave it a baseball field to maintain. It's not going to be used.

Do they not use it now? Well, right now they do, but when we we just built million-dollar fields up there that they're going to be using, right? Two million dollars. Yeah. And you know what? And when we do that, they'll still be wanting places. That's right. That's possible, too. But we've got Langlos and Klein and we've got two spots that we can build on the on the baseball complex. They'll have more facilities. The boys will have more facilities available to them than any other. The big fields are, and Morgan can testify to this, you don't need that many big fields. You got high school's got a big baseball field. We just built a new one. The University of Ozark has a big field and that one makes four. I think that's what three times as many as Russellville has even. So, just trying to find a good use for that.

Who's going to run? Well, I mean, what we do just like the Marvin, you rent it out. You rent it out to people is what you would do. Okay. People who want to What about the one in Lamar? That's Johnson County Round Club. Do you ever hear I've never heard of any when they're having any events down there. Oh yeah, they have. I'm not saying they don't. I said I've never heard when they're doing it. What I'm trying to do is I'm not worried about Lamar. I'm worried about bringing stuff to Clarkson. You got Foothills, you got there. There's all kinds of them, Eddie. But long as we don't have them on the same night, we're gonna be all right. I'm just trying to bring stuff to Clarksville. I think it'd be a good good thing to bring to Clarksville. And and if it's rented, they'll rent it when they're available and they won't compete. And they don't have to just be rodeos. You can do all kinds of other event things there. Yeah. Eddie King could have auctions if he wanted to

consignment auctions and things like that. It' be really really cool. Give us be I mean we have the lights. You can't take use the lights for you can't just take them down and reuse them. We're going to spend money for something like that. I'd rather have an advent center. What's

Well, the money I'll explain that when I found the grant through AEDC, it's a u it's a community grant that's available. It's up to 1.5 million. the way the grant's structured, it's a it's not necessarily a matching grant, but the ININ uh property, that's the majority of the money that's outlined in that grant application. Uh the 550,000 uh from ADC would do all the improvements. The city's contribution is the property, existing lighting systems, and just restructuring that to fit the intended purpose. So, as far as city funds, it's mainly inind contribution. The 550,000 would be the what we're asking for in the grant itself. And I I know there's going to be push back. I mean, there always going to be some push back on anything. It's just I'd say think really hard about what it could bring to our town as far as bringing stuff to our businesses, our restaurants, our motel, and that's that's in what we should be here for is to keep our town moving. What level of maintenance have you put the dollar signs to?

I've talked to several I've never not put dollar signs to it. You know, we have to haul the dirt in there and then you drag it and stuff, but compared to mowing and weed eating that thing all the time, it's probably going to be a lot less. Well, I know it's going to be a wash on the lights because I mean, they use the lights now. might be a wash there, but I'm not I was concerned about, you know, the the maintenance upkeep because trust me, have having a barrel racer that worked for me, if the dirt is not just right, you're not going to get nobody.

It it needs to be a drug. My son sets barrels and stuff and but like I said, I think with us renting this out, it's actually going to bring some tax money and rental back to our parks, which is in bad need of I mean, we we need some maintenance money is what we need. And Rob, if we stagger if we stagger it just right with the county fair, we can have one of the biggest county fairs in the mids south. Rodeo before or after it and then have the fair match that up to the fair. You talk about amazing and all the small businesses, you know, your hamburger places, your gas places, your hotels going to love it.

He was saying he thought that the county fair board would be greatly, you know, on board with helping us with it. So, so I know nothing about rodeos at all. But in preparing this grant, uh, what you were talking about, I found out was one of the more more important things. And in the details of the use of those funds, that 550,000, uh, I outlined how much of that would be used for the footing. Didn't know it was called that, but it's called the footing, that top layer of dirt, and how critical that was for what what you were saying, and that, you know, it's just not sand and clay. There's other additives and all and moisture you got to keep right. So there is money allowed in that grant application specifically for that footing which was a pretty

big amount. I know we have a lot of people going to Ozark to revios and stuff now, you know, and places like that, but [clears throat] I just was hoping, you know, if we can do this, it'll bring some business to Clarksville. Like I said, it could be rented for many other things, too. We, you know, just give us a chance to put it together and put a packet together and show you at least, you know, or ask or not, just at least permission to apply for it and then you'll get a chance to approve and shape it any way you want to at some point. or reject the grant or reject it out of hand. Yeah. Thank you. Okay. Thank you.

Do we have a motion? [clears throat] I'll make a motion to allow the mayor or city of Clarksville to apply for the grant, the CAGP fund grant. Okay. Is there a second? Second. Okay. Miss Lisa Baker, yes. Bradley, yes. King, no. Risinger, yes. Robert Thompson, yes.

Thank you, council. We'll we'll put together a good packet, bring it to you. And keeping in mind, like today, I got some requests about the pool park is not well lit. So, part of this is going to be considering the lighting for the pool park and addressing some of this stuff. like to your point, some of the neighbors up there, maybe we address that with um the same lights we use at the airport to reduce some of that lighting, some of the things that bother them. So, we'll do some some public outreach to see what their concerns are. I think it was the smell more than anything. [laughter]

Oh, Lord. Uh next is going to be the ordinance adjust the budget. Miss Lisa, could you read the ordinance, please? being enacted by the city council of Clark state of Arkansas and ordinance to be entitled an ordinance amending the 2025 and 2026 budgets for the city of Clarksville Arkansas. How therefore be it ordained by the city council of the city of Clarksville, Arkansas, the Clarksville city 25 and 20 2025 and 2026 budgets are hereby adjust as follows. 2025 budget adjustments. General fund expenditures 26946716 community projects 36,700 economic development 92,35527 maintenance 49,630 police maintenance 5250 aquatic maintenance 47672 47,672 street fund expenditures 5,000 park sales tax expenditures 78,4 441.85 general fund CCU's monthly statement 23961 and 81 parks sales tax revenues 43898238 parks percentage expenses 420566.98 fire maintenance revenues 236173 fire maintenance expenses 142 342 24 police maintenance revenues 246 18252 police maintenance expenses 178 39628 aquatic maintenance Revenues 41536909 aquatic maintenance expenses 700,82591 2026 projects carried over adjustments AW was 1593516 taxiway 1,4452190 insurance proceeds 48987922 emergency [clears throat] clause is imperative for city operations to continue to provide reliable services to citizens. Therefore, this ordinance being necessary for the protection and preservation of public health, safety,

and public property, the emergency is hereby declared to exist, and this ordinance shall be enforced and take effect upon passage and publication. Lisa, you want to talk to that just a little bit on

Yes. This is the [clears throat] whenever we have adjustments to the budget during the year, unless it's an ordinance like a truck, we publish those in the paper, but we hold all the other ones till the end of the year so we can publish one ordinance for all of them just to save money. Um, the reason we do the fire maintenance and aquatic and all those is we can't budget those. We just as they come in at the end of the year, we just say what we've had and what we've spent. The projects carried over AWSes, the airports, and the taxi way. Those are grants that they have been awarded that have not yet been spent. So, we have to carry over. So, when the deals come in, we can pay them. Insurance proceeds is what we have left to still fix our aquatic roof for [clears throat] the

new that new account when we put all that money. Yeah. So, that way we can spend that money. Is there you do it every year? Is there a motion to suspend the rules and place it on it second reading? So move. Second. Okay. Miss Lisa Bradley. Yes. King. Yes. Russer. Yes. Robert Thompson. Yes. Baker. Yes. Could you read by title, please? Being enacted by the city council of Parksville State of Arkansas. An ordinance to be entitled an ordinance amending the 2025 and 2026 budgets for the city of Parksville, Arkansas. And do we have a motion to suspend the rules and place on its third reading? So move. Second.

Second. Miss Lisa. King. Yes. Russer. Yes. Robert Thompson. Yes. Baker. Yes. Bradley. Yes. Could you read by title, please? Be enacted by the city council of partial state of Arkansas. an ordinance to be entitled an ordinance amending the 2025 and 2026 budgets for the city of parts of Arkansas. Is there a motion to adopt the ordinance? So move. Second. Second. Miss Lisa. Risinger. Yes. Robert Thompson. Yes. Baker. Yes. Bradley. Yes. King. Yeah. Is there motion for approval of the emergency?

So move. Second. Second [laughter] Miss Robert Thompson. Yes. Baker. Yes. Bradley. Yes. King. Yes. Singer. Yes. [laughter] You shocked me. I thought I knew you wrong. I'm sorry. I figured I would. [laughter] Thank you, council. Uh can't Stanley, you want to come up talk about um the account for Grill Wars? [clears throat]

Last year, the account we have for Grill Wars was just pretty much absorbed into the general fund. So, we didn't have a separate account for it. With the donations we're getting in now for the Grill Wars, we'd like it to be in a separate account where we don't lose that for the next year's competition. We don't have to go out and raise all that money again. So, anything that come in stays in that fund for that and that's what this is about. But I think we're right now we've received over $3,000 for the Grill Wolf competition so far. And I think it's going to be a big event this year. Ch partner with the chamber at the fairgrounds and stuff. I think we're going to have a big crowd. Last year was great. It was a good good event. [clears throat] But that's it. Just trying to keep the money in where it goes.

So, need a motion for approval of this line item account. So move. Second. Second. Miss Lisa Baker. Yes. Bradley. Yes. King. Yes. Risinger. Yes. Robert Thompson. Yes. Thank you, council. Uh 6H is going to be approval to change city credit cards to local bank. At least I'll let you talk through that a little bit. Uh this will help us just with the like our recent weather in our mail. Sometimes we'll get the statement and it's due two days later. Sometimes we will have to pay to have it today delivered. So if we could have a local bank and be able to pay it right there and if we have any questions just be easier to resolve. Yeah.

I already spoke with three banks and and they all do them. So it'll it should be easy transition. But keep everything local. That's what we're Yeah. I got Yeah. So So do we have in mind which which bank we're going to use? I told you [laughter] I they was gonna ask it. Let Centennial because that or security because that's where we have most of our holdings and it'll just be probably easier. Do they pay do they give you a fee? No, we don't. Cash back. No cash back. I don't know about cash back. I will check on that though. Can we get cash back on credit cards? Yeah. Clay, do you know that's

the banker? Who's a banker in here? There's got to be existing ones have that. Existing ones have. I don't know. I would check on that, but I don't know if that's any if we can do it. Absolutely. I'll I'll ask them.

Why not? I need to take a motion to approve. So, we have the motion. Is there a second? Second. Okay. Miss Lisa Bradley. Yes. King. Yes. Risinger. Yes. Yes. Robert Thompson. Yes. Baker. Yes. Thank you, council. I've been waiting on this one all night. Wade, come on.

My man Wade Bell Animal Control. So, we're here tonight to ask for 469.99 uh to build a dog park over there at the shelter. Uh the old one we have, it's not fun for the dogs. It's It's not secure and it's not safe. Uh we're asking for it to come out of the general fund reserve. Uh remind the council he don't have a budget and we we carve that out of community projects and he don't really have a source. So it's got to come from somewhere. So I understand that. But where did you get these bids?

Uh they're the most recommended uh playground providers. Uh, I did also speak to um my old boss in Russellville who did recommend the Did you notice that enclosure that looks like a little tarp that they sell at Walmart? The enclosure price on it. The which enclosure? The little tunnel? No. Uh, that's a huh? That's a platform. That piece at the bottom right. That is a platform. This one here that would be permanent. The structure would be permanent, but the tarp could be removed. It's

It's not much different than what's at uh I believe at the aquatic center. Yeah. But you go to Walmart and buy one a whole lot cheaper than that tens,000 for that. Yes. And that one will actually last. A tarp will not last. How long will it last? Uh it could last 15 20 years. Is there warranty on it? Yes. How how long you I believe 15 years. Wow. He got you, Eddie. He got you. [laughter] What? What about the dog park? We have We spent a fortune up there on that thing. There's nothing over there. You have an architect. Did you hire an architect? You had an architect for that? Yes.

All it is is fence. You got All that's over there is fence. What? There's nothing there's nothing over there for the dogs. And over the last people up there all the time. I don't In the last 12 months, we've already had four dogs dumped over there. Dump dumped as well. They're going to dump them in anyway. Not when he's there with cameras on it. It's a different animal. It just seems a lot of money. $49,000 for a dog. That's just my idea.

Is there not some other place that you can get any more quotes on this? Uh, not for the amount of stuff we would be getting for this one. And the warranty back it up and the warranty for other items is a lot less time. And just so you know, where where are we going to put it? Inside his facility. inside at the back of the property in the back. He's got a whole big old yard back there. Oh, in the in the back. Yeah, it's like a half acre. Not inside the building. No, no, [clears throat] [laughter] I was going to say that way. Anyways, council, we need it as a city. We need it.

It would bring a lot more attention to the dogs in the shelter as well and hopefully get a lot more donations. That's the big thing out there to bring people into the new facility. A lot of people don't even know it's there. Yes. and we stay full because people don't know we have pets to adopt. And I don't know how many times we've, you know, I don't want to ever get to the point where we have to euthanize an animal, but I don't want to see an animal living in a cage either. And there's so many animals gets dropped in the city. We're to the point now some of those animals are left there for 90 days and at 90 days they become eligible for youth and aging and we don't want to do that. So, we need more attention on that facility and people to know we're there and more animals to be adopted out. So,

you want 46,000, right? Uh 46,999. So, what about tax? I believe that was already included inside the bid for the quote. You better make sure I can do that. I'll I'll verify. So what he's saying is if you get the motion for this and don't come back for more. You got to make it work. Is that what you're saying? You sure? Show them the tax. Oh, no taxes. Hey, you want me you want me to move this to the end so you can go talk to the treasur and come back to it?

Okay, do that. Figure out the taxes and come back. It comes out of your [laughter] council. We're gonna wait a slide. We'll come back to that before we get Yeah. Yeah. Go ahead. Uh, next is going to be the chamber revitalization funding program. Ray, Hannah, do you guys want to come up?

All right. It says trust the expert. Trust the expert.

So, it is that time of year again to prep for our city and downtown revitalization grant program. Uh this is something that we partnered with the city on starting in 2023 um 2024 and then carried into last year. I gave a overview report in January. Um there was $252,3354 um of projects completed last year in the grant and it was paid out for 100,000 between the city and funds. And so just wanted to bring this before you so that I can get those applications out to the public and our small businesses. I'm happy to answer any questions or give anyone else. council. I would just say at this point uh 50,000 is a is a solid palable number for now. And if the data center permit and all that stuff comes in like it's supposed to be, Cody, that's that's going to be a sizable windfall for the city. Then we can come back uh as another agenda item and adds additional funds. But I would cap it at 50 for right now based on where we are economic development accountwise. And because we've got ammunition company we're working on, we got some other things to bring before you uh that that we need to make sure we have the money for. Is that if that makes sense?

And there there was uh almost $400,000 project 252,000 were completed. There was almost 400,000 asked for last year. So there is definitely a need. So if we go with the 50 um for later in the year for next year um you know we would like to keep this going and keep growing it for our community. Um I have other communities calling me asking what the process is because they've heard about it and they want to do it in their communities. Main Street Arkansas, we work our grant application process through them and they have referred a few communities to us just to kind of see what the process is and how they do that. Um, so we're setting a good, you know, standard with this to be able to support our businesses.

There you go, council. Show them how it's done. And you can clearly see the differences downtown. Even on the west end, coach is going right there. He's he done some work. Doug Bryant did some work down here. The mural on Ethan back there. Y'all's place. Charlie, y'all's place. Looks that's a that's one of the finest murals I've ever seen. It's really cool. I really like the bike on it. It's my favorite.

So, entertain a motion to approve 50,000 from economic development. So, move. Okay. There. Second. Second. Miss Lisa. Rosinger. Yes. Robert Thompson? Yes. Baker? Yes. Bradley? Yes. King? Yes.

Thank you, Miss Hannah. Thank you. And hopefully we'll circle back pretty quick that all that's going to move pretty [clears throat] fast. So, uh item K is state of the city. Uh what we've done is we put the end of year financials. I put a memo on top of it just like we done last year and the year before. Uh and that will stand as the state of the city. We have to present that by March of every year. So, uh item is going to be well back up. Wade, you ready? Let's circle back to you. We need to motion. Last shot at this. Oh, approve it. Oh, do we have a motion to approve that state of city? So move. Second. Miss Lisa. Robert Thompson. Yes. Baker. Yes. Bradley. Yes. King. Yes. Ringer.

Yes. You get one shot to battle any right here. That's it. So we will have to remove it from the agenda for now. Total ended up being 51,463. You copied me. Good job. But I I can't really really and I you really need to get with your your committee and work that out. That really needs to be up by one of the parks, you know, close to e either Klein Park or not not down there because you're going after hours you're going to be closing up, right?

But we'll open it on to Blackburn. They can come in Blackburn and be a public entrance there. But for the actual parking lot, but wouldn't it be better though close to a park? Honestly, it would be better close to a park for sure. Yeah, but we don't have Take your dogs and let your kids play at Klein Park and then let the dogs over there. Well, the bad thing is we just what's happening at Klein Park now is people are going to the park with their dog and leaving without their dog. And so [laughter] that's been a report. That's okay. You buy your dog food. [laughter]

So, we'll we'll look at that and come up with some different options on where you want to build them and and just do the pros and cons and just learn from it for now. Okay. Wade. Yeah. Thank you, Wade. And by the way, and I'm not being hard on you. I just Yeah, he is. Wade, yeah, he's being super hard on you. Well, I thought that was completely irrational. Yeah, I think so, too.

Hey, uh, we just seriously just put some pros and cons where it'd be and and he's got valid points. We need to think that through a little better. So, um, the two two things we have, one of them was CCU commissioners. Uh, we had two that resigned uh over the weekend for multiple reasons, and I submitted two. One's Blake Newire, the other one's Jason Shook. uh I kind of pointed out their resumes in the in the memorandum I sent you. Uh those were my nominations for the replacement and bike. You can live in the county. We changed that two years ago. We couldn't get anybody in the city to to apply for it. So

definitely good candidates say. So just did a motion for approval. So moved. Okay. Is there a second? Second, Miss Lisa Baker, yes. Bradley, yes. King, yes. Ringer, yes. Thson, yes. Thank you, council. All right. Next is going to be that CCU ordinance. Um, Jason Carter brought you the new one, the one that's handed out right at the last because he got some Did you get it, Lisa? Jason, you got a copy of that one. Oh, you want to make him read it? Let's make Jason read it. Oh, yeah. Yeah, Jason, you need to read this for us. Okay, sure. Thank you. Can I review it already?

Yes, you can. [clears throat] Thank you.

Y'all done a lot of hard work tonight. I'm glad I'm not here to ask for [laughter]

This is tough crowd. This is it has definitely a tough crowd, but uh uh this is really a a momentous ordinance that we're talking about. It has a lot of gravity to it. And that's why I I want to say I don't mind reading through this at all for you and answering questions and giving you commentary as I go. and uh just for whatever may arise, it's been the product of extensive negotiations uh to try to to shape uh a transaction with the data center from an electric standpoint. We're not talking about other standpoint. We're just talking about the electric service standpoint, but try to negotiate that in a way that serves the community well. Uh and uh we'll and will serve you for a long time. I just want to say that the uh before I get started with that, the core negotiating points for the city have have been unchanged the entire time. We've said uh uh not my money. All right? It's your project, your money, not so it's not the money for for the people of of Clarksville to subsidize as well

and not our risk. Number two is not our risk is that we don't take on the risk of the project. The risk that is related to the project be born by the entity who owns the project. Jason, let's let's do it this way. Have you read it through in its entirety? Then we'll circle back to any questions they may have. You want to do that? Sure. You're not going to let me narrate. No, sir. Let's do [laughter] Let's Let's make sure we check the blog. I know you was. I saw that. [laughter] I had to reel you in. Just like you used to do me when you was FDO. Get over here. Yeah. He used to do that to me all the time. Get over here, Gunny. Count. Trying to get payback.

You know what? [laughter] So uh so I may have some commentary while we're here but I'll keep it short. The the third point on this is we we've always tried to look and say what's the benefit and so that's our third negotiating is there there should be something a betterment for the community uh while we're participating in so not our money not our risk and a betterment and ultimate betterment for the community those have been on negotiating so uh this ordinance is is an ordinance creating a new electric rate so that's the primary thing that we're doing And we are amending application of the power cost adjustment. Power cost adjustment is to be unchanged in the way that it works. One of the reasons why you have a new version in front of you because I used the 2024 version when I gave you the last one uh instead of the 2025 version that you approved last summer. That's what it should have been. So the only amendment to the version that was most recently approved is how it applies. It would not apply to the new registration. Okay. So that's been corrected now and the one that is in front of me. So uh whereas the city of Clarksville, Arkansas is the owner and regulator of municipal utility providing electric, water, wastewater, and broadband services. That's no surprise to me. And through the adoption of ordinance number 23911, the city established a commission known as Clark Connected Utilities. uh collectible connected utilities commission of the city of Clarkville, Arkansas for the purpose of operating and managing the city's municipal utility and accord code annotated 14201 2011 at SEC and the authority granted by the city. So you define the relationship that you have with CCU as you have

granted them authority to operate your utility for you. But you still hold uh uh authorities over that as stated in the next whereas clause whereas the city would tell from the commission the authority to establish rates and standard fees except to the extent that the commission charges less than the amount authorized by the city. That's very traditional in the relationship between the city and the commission that the city council would withhold rate authorities as you have. That's a that's a predictable relationship. Whereas the commission has determined that a new electric rate structure uh should be established for extremely large power customers whose electrical needs exceed the commission's currently available resources. We're talking about people who need electricity way beyond what we are able to provide at the moment. We don't figure out a solution for them that they see what we can do right now. And whereas the commission has requested the city to adopt the rate and delegate authority over certain matters as described in this ordinance. This ordinance is a is fundamentally a request from CCU to say please establish this rate uh so that we can be about implementing. So uh uh now therefore be it ordained by the city council of the city of parts of Arkansas the power cost adjustment and section one power cost adjustment. Power cost adjustment approved through the adoption of ordinance number 24959 is hereby amended to add an exemption for oversized demand customer accounts as shown on the revised exhibit E electric 2024. If you would strike that last four and put six there six because we're updating that now six in section two the oversized demand rate. This is the rate that you're being requested to adopt. Clarkville Connected Utilities is hereby authorized to charge

for [clears throat] oversized demand electric service in accordance with the rates described on exhibit G electric 2026 which is attached to this ordinance and incorporated herein as of set forth word for word for purposes of this ordinance oversized demand electric service shall mean large commercial industrial electric services provided to a location with electric requirements or anticipated electrical requirements that but for customer oriented contracts and we'll get into what those are exceeding CCU's existing available electric transmission available electric generating capacity available electric energy available electric services or any combination thereof. Section three amendment to Clarksville Municipal Code section 4.04.2 20. This section has to be amended to show the revised exhibit E and the addition of exhibit G. Section 4.420 is not changed regarding exhibit A, B, C, or D. That's why they're not attached. They are not being amended. Nor is exhibit F being amended. Thus, it is not attached. and the rest of the language stays the same. Section four, other rates. This ordinance is supplemental ordinance 24959 and shall not be construed to alter any rate that was approved prior to the adoption of this ordinance. Everything else stays the same. All it is adopted. The provisions of this ordinance which is declared to be severable. Any part of this ordinance is declared to be unlawful or enforceable remainder shall continue to be effective and the effective day of this ordinance would be 30 days after passage. No emergency

clauses requested. Get more into the meat of it. Let's move to uh exhibit E, the power cost adjustment. As I stated before, this language is identical to what you voted on uh last year, last summer, last June, except for the if you look at the third paragraph down uh the very last sentence there is inserted or the oversized demand electric service rate schedule. So the power cost adjustment would not apply to the oversized demand electric service rate schedule. So let's pause for a second. Let me say why is that? Why does the power cost adjustment not apply? So typically when we have wholesale power costs, we try to smooth those over throughout the year, right? Throughout a period where they're where they're smoothed in, the highs and the lows are smoothed in. power costs uh in the energy market change every five minutes. If those if we try to pass those direct cost directly to our customer, that doesn't work for your home budgeting, right? Especially because power costs sometimes peak in highest use month uh months. We would go from highly elevated bills to much lower bills and people would get sticker shock and affect their lives. So, with power cost adjustments, you just kind of guess at what we believe the uh the wholesale power costs are going to be and we make little adjustments off of that base along the way. When we're dealing with these oversized demand customers, we're not putting any assumptions in. All costs pass directly to the consumer. They are so they're they are separated

from the power cost adjustment that the rest of our our customers use. Does everybody understand how that works? If uh I know power cost adjustments can be confusing sometimes and the more that we need to talk about that to understand it and have transparency around it I think the better off we are to understand those things and we can revisit them if needed. But uh moving to uh exhibit G, this is where the the bulk of uh the language is and you can see it's quite a uh a lengthy rate schedule. Um but uh this has been uh the product of a significant amount of negotiations. Uh so availability oversized demand service as we said earlier is an electric service the Clarkable connected utilities may provide to an oversized demand customer within CCU's electric service area to be within our area for purposes of this rate schedule. An oversight of the manufacturer is a customer that requires electric service to a location with within CCU's electric service area that but for customer oriented contracts described below. Like I said, we'll get into that. Uh exceeds CCU's existing available electric transmission, available electric generating capacity, available electric energy, available electric services, or any combination of A through B. And uh that's restating of course what we stated earlier in the ordinance. Oversized demand service to a customer shall be limited by the terms of such customer oriented contracts as may be uh entered into by CCU to serve the customer. What does that mean? That means if we get into a third party contract as we enter third party contracts to provide service to the customer. Our obligation to provide

service depends on our ability to receive the service. So normally if you have a customer within your city, you have an obligation to provide service to them. Our obligation to provide service under this rate is limited to our ability to receive and provide that under third party contracts. It's not unlimited. Uh and we do the best that we can for those things. uh and they're also subject to such restrictions as may be applied by governmental authorities for the transmission system operators. So obviously when you have very very large roads we sit within Southwest Power Pools RTO footprint they manage the transmission system uh we have to abide by their rules. If we have a customer who says I need this much electricity and Southwest Power Pool says no, we can't get that. We're bound by uh the rules of the transmission operator. We're bound by that. And so that is a limitation on our uh service ability. So let's look at application and uh please note words matter, right? So I'll go through it slowly. CCU may negotiate and execute agreements. This means you are authorizing CCU to negotiate and exe and execute agreements with oversized demand customers for service so long as so you're authorizing CCU to negotiate contracts but those contracts must comply with the following uh directions. [clears throat] They must ensure that all costs for such services are included in the net rate charged to oversized demand customers as described below and ensure all risks of financial loss attributable to the provision of such

services are reasonably mitigated through security requirements imposed on the oversized demand customers described below. Agreements between CCU and oversized demand customers may contain such other terms as are agreeable between the parties. It is the intent of this section to ensure that the costs and risks associated with CCU providing electric service to an oversized demand customer are borne by the oversized demand customer. So when you're authorizing them to negotiate, execute agreements, that is what they must comply with. They must comply with that. And if they don't comply with that, then they're out then they're acting outside their Okay. And they're not able to enter into the contract. So the character of the service electric service may be delivered using singlephase, three-phase, or other method that is mutually agreeable to the customer and CCU. In other words, if it were to come directly off of a 500 kilovolt line, right? That could be done uh as may be agreed between CCU and the oversized demand customer. Service may be unmetered. As you'll see, we may have a structure where uh where it is capacity only based that traces back to the main plate of the generator and it's not necessary to meet with that with that. So we you're you're allowing them the authority to enter into a contract like that. Now let's talk about these customer oriented contracts because that these are contracts that we would enter into in order to be able to serve the load that is required by the customer. Typically under section 2.60.03

03 of your code. If CCU wants to enter a wholesale power contract, they have to bring that contract back to you to be able to get it approved as part of your withholding of authority to approve those contracts. This would be an exception to that case because the the uh these customer oriented contracts are fully paid for, fully secured by the customer. So the negotiation and approval would be between CCU and the oversized customer. Let me read the language. As an exception to the limitation on contract approvals found in section 2.60.03 03 of the partial municipal code CCU may in consultation with an oversized demand customer enter contracts of any and every nature with third parties as the CCU commission may determine to be necessary or advisable to provide services to such oversized electric customers. So they're going to be aware of all the c all the contracts that are being entered. the customer is aware of everything. The costs of such third-party contracts shall be included in the net rate described below. So any cost that's associated must go into the net rate. Risk of financial loss associated with such third party contracts shall be included in security requirements described below. So that's when you think about financial security departments, it's posting uh letters of credit, it's posting cash deposits, it's posting, right? Parental comp corporate guarantees. It's things that guarantee payment. But we're saying that those security requirements have to

be imposed on the customer. We don't carry those risks of financial loss associated with such third party contracts or do sorry I needed to read that twice just to emphasize I'll move on oversized demand customers shall be authorized to inspect and audit the performance of any contract that forms the basis of a charge under the net rate or security requirement. So because they are seeing it and some of these will [clears throat] all in all likelihood be triparty contracts uh where they will the customer will additionally be signing contracts. So they would obviously have the right to inspect and audit those contracts to make sure that they're being properly charged. So let's talk about the net rate and how their rate would work. CCU will bill oversized demand customers according to a regular schedule with billing intervals that do not exceed one month each. Normally, we send monthly bills. With some of these bills, they may go more frequently than monthly because the billable amounts are so large. code to mitigate risk and financial exposure. The flow of bills may be more frequently than [clears throat] the total bill issued by CCU shall be the sum of the following rate components. There are five rate components below the sum of all of them subject to applicable discounts, taxes and adders for non-standard service. But these are their charges. Number one is a market charge. That is a charge that's equal to the actual cost of all customer oriented payments to Southwest Power Pool by CCU

other than transmission charges. I want you to think about this is energy market charges and SP all energy market charges that we incur for that customer they pay directly. They are obligated to pay. This doesn't include transmission charge. That goes in the next line. But anything that we're charged by Southwest Powerpool to provide services, they have to pay. Our customer has to pay for that. They they cause and charge. They charge transmission charge. But note too that their actual what we're saying is it's equal to the actual cost. Everything is actual cost. Transmission charge. a charge is equal to the actual cost of all customer oriented third party contracts for transmission entered by CCU and the customers prorat a share of southwest powerpool charges to provide services to the oversized demand customer. So, so there are transmission charges also that will come from SP and there are transmission costs for infrastructure to be built that has to be paid for right. So the so all of the transmission charges also pass through to the customer. Third generation charge. So just think about generators, right? Generators and this is a charge is equal to the actual cost of all customer oriented third-party contracts for capacity energy. Rex are I've got this Rex there. A wreck is a renewable energy credit. And so it's a thing that can be monetized uh that is associated one wreck equals one megawatt hour of renewable energy. It's a thing that has can be monetized. So it's a charge that's equal to the actual cost of all customer oriented third party contracts for capacity energy rerecks or any combination

thereof entered by CCU to provide services to the oversized demand customer. [snorts] And then it says less revenues derived there from. So the reason for that is because sometimes there's more energy that's purchased than what you need, right? We call that being in a long position. If they've contracted for energy and we are in a long position, they are still obligated to pay the cost of those contracts, but then it's sold, right? So if you they bought more energy than what they need, that energy will sell into the marketplace and they would be entitled to the revenues from that to offset their costs. they're the ones that pay for it. They're entitled for the revenue. So those are the three uh primary uh th those are three charges that pass through essentially on an actual cost basis. Now there are two other rate components that do not and these are rape components that uh will support uh staffing administration professional services uh and represent to the community a what's in this for the community what what parts of this contract support the community that's in these last two components. So the first is a service availability charge. This is a fixed monthly charge. So it doesn't change. It doesn't vary. It's fixed in its amount or rate, right? But it's a it's based on a on a fixed rate. Uh that is based on the total capacity available to an oversized demand customer for capacity related services provided by CCU to the oversized demand customer according to the following schedules. to differentiate between service that is provided through an interconnection if they're hooked into the transmission grid or if they're served locally by local generators. That's two different

structures. Okay. So for grid connected service, the monthly rate is $480,000 for service up to 500 megawatt of capacity. For more than 500 megawws, uh but less than or equal to a,000 megawatt, uh the fee is $710,000 a month. And for service greater than a,000 megawatts of capacity, uh it is $960,000 a month for locally sited generation service. Uh that is a it's a fixed rate instead of a fixed month. It's a fixed rate that would vary. That is uh a$1.50 a kilowatt per month. Uh so uh just for illustration purposes uh designs are still you know I think in theory out there but if it was uh let's just say there was 350 megawatts of generation that were to be installed for local service that would be a monthly uh fee of five in this rate component of $525,000 a So uh so that is that rate component. All right. So then we move to the next one which is the administrative charge. Um so the administrative charge uh to help manage these contracts uh and again uh you know get us the professional services that we need to to handle these things uh the right way and to get uh

also you know have some benefits for the community. Uh uh this is a monthly rate that's based on the total energy consumption of an oversized demand customer for energy related and administrative services provided by CCU to the customers according to the following schedules of differentiated between service provided through interconnection with the grid and service provided through locally cited generation. the administrative let me start at the bottom because the administrative charge on locally cited generation is zero dollars right when those are locally cited it's just far less administratively burdensome for us to manage that so uh we see the uh uh the fee uh you know from the service availability charge as being adequate for us to be able to manage that process with grid connected service uh it's based on their total megawatt hours of usage during the month. Uh and uh you can see that uh you know the lowest limit is up to 13,140 megawatt hours. Uh and then uh for $6.40 40 cents per megawatt hour. Uh and then as we increase in usage, the rate goes down for more than 13,140 megawatt hours, but less than or equal to 365 gawatt hours. That's not a phrase we use often. That's a lot of energy. A gigawatt hour is a thousand megawatt hours. Uh when I was at uh North Little Rock, we ran uh we provide electric service both for North Little Rock and the city of Turwood neighboring. We're the only city that served a neighboring community. Um and [clears throat] we did

900,000 uh megawatt hours. So uh this you can see especially in the next one, it goes up to 730,000 megawatt hours. So that's uh starting to approach uh Northville Rocks load at that point. And so it's a lot of energy. U that the previous category was at $5.40 a megawatt hour. This one's at $4.40 a megawatt hour. uh and uh at greater than 730 uh,000 megawatt hours, 730 gatt hours, the rate is $3.40 a megawatt hour. So I'll let you do that math. You can multiply 730,000 times $3.40 is a is would be the minimum monthly rate uh at that classification. Uh so and as I said for locally cited generation that's a Z uh rate. Um there are going to be times when some charges that we see uh you you'll try to think about well where is the right place to put it and it may cross over from one line to another. That's why there's language at the bottom. It say costs within a third party contract that are applicable to more than one type of charge may be combined into any charge except for that service availability charge or the administrative charge. Right? We don't combine third party contract charges with these uh service availability and administrative charges. uh and some charge types may not apply as as we've said uh when you've got locally cited generation like the administrative charge does not apply.

So let's talk about uh move that's the rate structure five components three that are direct more direct cost assignment uh two that reflect our administration service availability charges uh moving to security uh so financial security as a continual condition of oversized electric service CCU shall require an oversized command customers to provide CCU reasonable financial security against any potential losses attributable to a customer oriented contract as described above. See Southwest Powerpool participation or other identifiable risk that is directly related to the oversized demand customer and to maintain such financial security throughout the period of service. So some of that would be our own if we identify our own financial risk. Uh that would be something that we uh just like you would with any customer have to have some sort of letter of credit or deposit you know cash deposit to protect us against losses. Uh but then primarily that just relates to these third party contracts that we have or you know quite substantial cash posting requirements uh that are at Southwest Powerful those would be pushed directly to uh the customer that they would be obligated to make those payments not us. Um so restatement here mirroring what we did on uh the previous exhibit. The power cost adjustment does not apply to oversized uh demand services. Let's move next to talk about how franchise fees work. Uh we don't have a per se

franchise fee between the city right now and parts connected utilities. There's a revenue sharing arrangement that as best I can tell dates back to the 80s. I will probably come back to you at some point and go, hey, let's clean this up a little bit. Clean up our our paperwork some. I'm not saying you don't have paperwork fun. I'm just saying update it, modernize it, make sure that we we uh cross all of our tees and got it all right. But it's uh but you currently do have a revenue sharing uh relationship with them. Uh and what what we're saying within this is that any fee or revenue transfer lawfully applied to the gross revenue because that's the way these things work, right? that applies to gross revenue CCU by the Clark City Council including anything impo any including without limitation a fee imposed pursuant to Arkansas code 142101 that is uh franchise author that's municipal franchise authority uh shall be based upon the service availability charge and administrative charge of the net rate and shall not be applied uh applicable to market transmission or generation charges What are we saying there? That uh that revenue sharing franchise fee structures right based on gross revenues will only apply to that service charge and that administrative charge. It will not apply to these other uh pass through and I call them pass through charges but it's where we're taking actual cost of the contract when imposing it. they would not be subject to an adder like a franchise fee or revenue sharing adder based on those

there's no revenue in those because it's cost it's they developed the cost they paid the utility for it so there's no revenue to be shared that's reason I was a little unclear that's going to be that's how that's why that is the way it is

yes and uh uh and and honestly that was there there was a lot of arm wrestling around some of that language too to be able to find the right point of agreement where we feel like we've settled into a good place where that will produce nice revenues for the city's funeral fund, you know, uh and uh and I'm I'm sure our uh animal control officer would be proud of that. [laughter] Um [laughter] uh so it's uh so I do think that that will be advantageous but it's uh but it's but limited I want you to know it's limited the service availability charge and administrative charge. So uh other taxes uh the net rate is subject to such sales and use taxes as are required by law. So whatever the law imposes that's what's applies and that's just the way that it works. Uh with payment uh we have this is typical payment terms that we use for uh all of the customers uh about when payment is due after the billing date and how late charges apply. Uh the the language that is non-standard is you're going to see at the bottom the very last sentence non-standard. CCU and an oversized demand customer may agree to payment through an independent third party. Okay. So let me let me discuss this for a second because there's going to be a very very large amount of money that is being paid uh on a uh repetitive basis to flow

through an account to uh third party contracts so that they're paid multiple third party contracts where they get paid and uh as that money is moving through. There is a concern that someone may decide that you've got a deep pocket and come out through your funds which would cause a lot of hurt in the whole transaction. So the avenue that we are exploring right now is to basically have what's called a municipal trust where the money would pass. It would never leave city coffers, right? It's paid into city coffers. It is a city account, but is a specialized account that is restricted. The use of those funds is restricted. And if you're going to pay for the things that are listed in the trust agreement, you all have to be part of the trust agreement. It says how the money gets paid. And then there'd be a third party who makes all the magic happen. So, uh, everybody gets paid the way that there all contracts get paid the way they're supposed to. All bills go the way that they're supposed to. uh and um and we can kind of watch that happen. So that's the thought about it. I think it keeps our counterparties more comfortable uh in the flow of the money that all money will flow the way that it's supposed to. Um and it's not contingent on somebody who took vacation or got sick that week because it's really they're just they're just too many dollars moving to have those kind of concerns arise. Some big bills got to be paid.

Yes, big big bills. Big [laughter] very big bills. Very very big bills.

So the uh the last provision in this rate talks about the contract period. So [snorts] we started you know at the top we said you know that CCU would be authorized to negotiate and execute agreements with the customers uh that imposes these costs upon them. They're going to agree to it. They're going to have to agree to it and they're going to have to accept it. They're in service. [clears throat] That's what they've got to explain. U this would be another limitation based on [clears throat] the contract period that a contract period between CCU and an oversized demand customer shall not terminate until the latest date of termination of any customer oriented contract entered by CCU. So if they say, "Hey, I need to get a contract for 100 megawatts of power from this power plant." We say, "Great." We enter into a contract for 10 years to buy power from that generator. That means that their customer contract has to endure for at least 10 years. They cannot terminate service with us until after that contract is terminated. They have to provide the payment for that contract and they have to provide the financial security for that contract.

They got to fulfill that contract before they get out of it. Guaranteeing is done and then they're clear. So, so that just guarantee they're clear of that contract. Yeah. So, whatever damages might result from a breach would not be the responsibility of this community. That's all. That was a long one. So, council, this this man this this man spent the better part of 26 years of my military career torment me. Now, it's our turn. Get him. Yes, sir. Get him.

All right. I've got two questions. One, what is the definition of a a oversized demand? So, so that was uh the oversized demand customer has to meet. That's anyone who meets one of those four uh qualifications. That means they need service or we don't have transmission for them. Okay?

We don't have generation for them. We don't have energy for them. We don't have the services for them. We can't do it. They need service for them and we don't we don't have those things. So now we we would have a rate structure say we don't have those things. If you wanted them I'd say we don't have those things but you know what I do have? I've got a rate structure where if you want those services we'll go out there and get them for you. Now you need to know that the costs are going to be yours and there's going to be risks that are associated with that and the risks are going to be yours. And if part of our rate structure is is is made in such a way that if we're going to jump out there and we're going to do these things and we're going to try to facilitate this then yes there's going to be some benefit for the community as well.

And the other question I had is was the southwest you you referred to southwest power pool. Yes sir. Didn't we agree last couple months ago two three months ago to go to a different a central pool? is OMA. We we went away from Oklahoma Municipal Power Authority as our energy consultant. Southwest Power. No, there's a there's a lot of entities out there. So, I can clarify for you. Yeah. Okay.

You have an interest in federal hydro power with Southwest Power Administration. Somebody else. Y'all, whoever, y'all didn't make that decision. Your predecessor, somebody made a really good decision with Southwest Power Administration swap, right? That Hey, that that is a that was a wonderful decision that has served this community so exceptionally well.

Uh and we had a wholesale power contract with Oklahoma Power uh Municipal Power Association, right? One of the reasons why we wanted to shift is because we felt like we could be getting more value out of that Southwest Power Administration generation. So, there's some value points that we felt like we could get out of that. Southwest Power Pool is somebody different. They manage the transmission lines. So, I won't bore you too long, but I geek out on you.

No, it's perfect. It's perfect. People need to hear it. In World War II, you know, the United States was was trying to defend itself against Germany and Japan and needed to make needed aluminum and uh and to take [clears throat] a whole lot of electricity to make aluminum. And there was nobody in Arkansas who had enough power like a power company to make aluminum. And they made Southwest Power. And that brought all these different companies with their generation together around hot springs where Boxside is and they started making aluminum and it pulled all this electricity in. So it's a way that's that was the whole initial thought process is to say we can work together and we can solve the problem and then we started sharing the transmission system. Now, everybody didn't play nice about that. And uh and in the 1990s, uh FERP, Federal Energy Regulatory Commission started saying, "Hey, you've got to allow people to use the transmission system just because you own that wire out there. Everybody needs to be able to use it." And and then that transitioned into the early 2000s where they they issued another order and said, "We're going to move to these regional transmission organizations." So it doesn't matter who owns the wire. There's an independent nonprofit who says we control access to the wires. So everybody's got fair access to it. Time rolls forward. And then not only do you have access to the wire, you have access to a market to buy energy. So they're dispatching. It's a nonprofit is dispatching the energy, but to whoever can make it the cheapest at the time, you know. So that's Southwest Power Plant. And so we get access to the transmission system and access to the markets to buy energy that's changing in value every five minutes. This stuff's fascinating me. I love I said I could

talk about all night. I literally answer my question. [laughter]

Thank you Jason. Yes sir. Yes sir. probably on. Thank you, Jason.

We have nobody. We have nobody signed up for We didn't have anybody signed up on it. No, Mr. Zikoffer did and Mr. Chris Case. That's it.

All right. Council Any other questions, comments, concerns? He's here, but he didn't speak up. So, I got it. Relax.

Do we have a signing sheet? Yeah. Yeah. Yeah. There's a Yeah. Signing sheet. Yeah. Yeah. Yeah. Yeah. Council. Ma'am. Ma'am. Ma'am, wait just one second. Council, we have someone from the public who wants to speak. Requires an affirmation of your vote. Do you wish to hear from this citizen? I do. Yeah. Yeah. Just give it three minutes. Please come up. Address. The guy said he answered. announce announce your name and who you are and what any organization sign up outside

and you should yeah there's a sheet out there you should sign up and and which topic that you want to sign up on. Yes, ma'am. State your name. And

I'm Adrian Roach and I usually consider myself passive aggressive, but I mean my baby name is King. So anyway, but like beyond the power the facility, this was I'm reading from the graphic from a few weeks or so ago, so it may be a moot point now, but it said that the the facility will utilize up to 1.5 million gallons of water daily. And as part of the utility agreement, Surfer Farm's investment in system upgrades may help the city fund a portion of 35 million needed for Clarksville's aging pollution control facility. So, do we need $35 million to upgrade the pollution control facility? And how much are they responsible for that?

All because it said no. That answer may answer your question that they're supposed to. If I'm not right, mayor, they're going to pay for all the upgrades. Is that your question, Adrian? Well, and I'm not sure the graphic source on that, so we'll have to go back and find out. But go ahead. Okay. Um, people's utility bills seem to be going up already, and some people have said that it was just from this recent two weeks of ice storm. And I was wondering

to be a good point if I could I'd ask Jason just for a second if you if you'll kind of slide Jason how does how's power purchased? How do these utilities buy power? Can you talk us through that the day mark I can I'm happy to address all your questions taking notes as you get. So Miss Adria I'll let Jason so if you'll answer just lay your questions out there we'll we'll get them. What what are your questions? So how power the rate you want to know how it's purchased, right? You heard from the graphic that's using how many gallons of water? 1.5 million. 1.5 million gallons. Okay. How much do you know how much Tyson uses on a daily basis? It's roughly a million. So, but we're going to get there. This place could use more anyway.

Yes, ma'am. It's a good It's a good We're in a great place for water. So, yes, ma'am.

It's one of the reasons they're here, in fact. But yeah, it seems that people are commonly complaining that their utilities are going up and it and it seems like it's been going on longer than just the two weeks ice storm. And so I mean this might be irrelevant too, but I was going to ask how do you like if the governor uh declared the ice storm state of emergency then you know could you not use some of solar panel backup or to help people cover that or I don't know how you you know categorize your funds. So solar we want to we'll talk about that too. That's a good one to talk about because I specifically want to talk about that solar deal and how it went down under John Lester. So

Okay. Also, the last quorum court meeting, uh, Herman Houston said that he had talked to you or the city council uh about y'all not having enough for the 911 funding on your portion that

No, ma'am, that's a different subject. But we what we did as a council is we capped the spending. We just didn't give them an open checkbook. We said we're going to cut cap it at 300,000. If you need more than that, they got to come over and ask for it and justify it because the taxpayers of Clark have put quite a bit of money into that. Started out 250,000, last year was 300,000, then it went to 350 and he said he paid more than the cap and then we provide the building. Yeah. He he did say something like all that happened or something. All that h miss all that happened there was we put a cap on their spending and just like everybody else the police has a cap on his spending fire department has a cap we

they have a cap they didn't have open checkbook anymore and that's all that happened and that's being that's being prudent and conservative with taxpayer dollars. Where did the money go for this great land deal though? Didn't you get like 8 million or something for the debt center? No. No, ma'am. I'm glad you bring it up. At some point when I'm no longer mayor, I'm gonna tell that story. I can't today. Had nothing to do with us. But it's an interesting story for sure. And I like see that on your Facebook page. But what's your other question? I think this is the last

because I mean I can come up with questions but I can't verify the answers. Okay. And uh last time I was here and I got pretty upset and you know I think you might have been trying to make me feel better after the meeting and you you asked me where I thought the proposed data center was going to be and I said where it was going to be and you said no. So you lied to my face. The last meeting they'd already cleared the land. That doesn't make sense. They they had already started clearing the land in January. So I don't know what you're talking about. start they they started clear I mean they they really hit the ground running like the next day and within that week all the trees were gone like but it was like the day after we didn't talk as

they had already started clearing the meeting I had the Q&A was the first month first meeting of the year they had already cleared the land yeah they had already cleared the land by then so that's not true anyways you had enough time yes sir

thank you Uh, I I took some notes. Uh, I I can't speak to anything about 911. And of course, I'm I'm not afraid of any conversation y'all had. I I can't address any of that. There were three uh points that were brought up, I think, that were uh interesting points. One was water, right? Because obviously uh the data center needs water for operations like any business needs water for operations. That is a separate issue that's being uh discussed. But you can uh hopefully see our negotiating strategy in this uh as as we move forward that this should not be a cost to the community. It should not be a risk to the community. It should be a net benefit to the community. And that's been uh the negotiation. So I believe that uh you know with a water anticipated water usage of 1.5 MGD that is a reflection of how far they've come I think in their operations uh because there's a lot of data centers in other areas that consume a whole lot of water and I think they're trying to reuse water. They're trying to be smarter about it. They're going to have some evaporation but yeah there's it's there's a lot of cooling that goes on. I think there that reflects there being more efficient with that. But uh that's a that will obviously be a different rate that'll have to be discussed and approached, right? That's a thing that's going to have to be done. So uh and we'll address it then at that point. This just deals with the electric uh there's a question about wastewater uh system upgrades. Yes, you you have a system. How long has your system been in the ground?

Long time. Y'all know how long those pipes have been in the ground, right? You know how long you've had your pumps. You know your retention ponds, how long they've been there. And that stuff doesn't last forever. And and and you know, and it's real easy, you know, [clears throat] just to think out of sight, out of mind. It's underground and you don't think about it and time creeps up on you. Uh so yes, I think that those are things that need to be done, right? Pro. And I'm not saying that, you know, that this is an emergency moment, but there are things that are going to need to be done. Well, last time last time we did that, we had to flow the bond for so many years, you know, and and that's the alternative

takes money, you know,

and that's that's been one of the points that we've said is like because we talk a lot about money and revenue to the utility, that revenue to the utility is to improve the systems uh that are there. and it's uh and there needed improvements. So, uh I think that that's important. It's a good thing for us to talk about as a community because that shows how this agreement, you know, this relationship can be advantageous to the community, but we don't have to put that bond issue. We can accumulate the revenues uh out of this relationship with the data center and cause those improvements to be made and take a lot of pressure off everybody. Uh there was the last point was really more in my wheelhouse talking about uh electric rates going up. Uh you know we talked about the power cost adjustment because u we don't control the cost of natural gas. Natural gas drives the cost of electricity. That is there's a direct correlating driver. If you want to see where electric prices are going, look where natural gas prices are going. That's what's going to tell you where the cost of electricity is going to go. And nationally it's gone up. All right, that's been a thing. U there's been a lot of demand for generation. We've been turning off coal plants. Uh that's constrained. You know, when you reduce supply, you increase demand. I mean, prices go up. Nobody's making that happen. That's just a function of the market. That's the way that it works. So what So I think our approach in this is to try to mitigate the impact of that. generate the revenues that mitigate the impact associated with those increases. Uh obviously we had a price spike in the recent winter storm. We [clears throat] got ugly, you know, for a couple of days. I think we had sustained pricing above $500 megawatt hour and it's tough, right? And that's

where, you know, it's you want to make sure that you're protecting against those risks uh to the to the extent that you can to try to mitigate those costs. But it's a real thing and it happens. So, uh, that's part of what we try to manage in risk management. Uh, I had a, you know, one of the questions was, well, can we mitigate that using our solar panels or the governor declares an emergency? Governor can declare emergency, but when the governor declares an emergency, it doesn't mean that people don't get paid. Everyone gets paid and the money comes from somewhere. And the word in the electric industry is load pays. That's the customer is ultimately the one who pays. Uh even when we use solar power, we pay for the flow of the energy that comes off of the solar grid, right? That's it's a it's a contract that that has to be paid for. So nothing's free, right? No, there are no free resources to be able to support people or obviously we would do that. So uh unfortunately that's not necessarily the news everybody wants to hear that yes there's been an increase in electric rates but take comfort in the fact it is the entire nation right uh is is dealing with this moment right that we've retired a lot of plants and demand's going up and the market is what the market is uh and uh we do have some solar resources we've got hydro resources with Independence County we've got swap you know and we've got a good contract that we're leaning into with uh with EverGy to help manage those costs and risks for our community and I think we're uh we're doing a good job of it. So hopefully those aren't really data center centric questions as much but hopefully that will give the community a little more confidence that we're aware of the issue and we're attacking.

Thank you. Thank you. Thank you.

I would and I would say this when I first got told about the solar and how it worked. This is basically how I got explained to me was that the city of Clarksville buys and uses 29 megawatts of power to run the whole city when everybody's running their stuff 29 megawatts. And during the summer, right, we're buying we're buying 29 megawatts the day ahead. In the summer months, it may require us to buy 30 or 40 megawatts and say we have 10 megawatts of solar. So we can either a go to the market and buy that 10 megawws or b use our 10 megawatts that we have on hand and it keeps us from going to the market and buying it at an exorbitant price which is a peak price. So when everyone else is paying like $54 a megawatt, we're we're paying $34 a megawatt for example. Those aren't specific numbers, but ours stay the same. So the solar is used more to levelize your bill as opposed to seeing these big spikes. That's really what the solar is for. And then if we ever get to the point we're having a data center revenue at some point where we can put a battery on the solar like I Ethan where you I expect to see a free power a month for the city of Clarksville. We should be able to offer free power to every CCU customer at least once a month. It'll be that much revenue off of it if we if we work it right. So um I appreciate your question. Um it was a little off topic but we're on the data center rates tonight. come back and we'll have a very candid, open conversation about anything that you want to have. I promise you. Um, you're going to see the world differently one day. I promise. So, we'll just leave it at that.

Mayor, could I add Yes, sir. Um, I encourage you to anyone to come to those CCU meetings. I hear I have a lot of people ask me, hey, you know, well, I heard this and I heard this. I'm like, I was sitting there. That was never said. Don't take anybody's word for anything until you hear it. Because there's been so much garbage spread about not just the data center, you're talking about the sewer treatment facility. How old is our water treatment facility?

We we've got the city has got a big big bill we're going to have to pay for water and sewer. and this data center again with income from that uh and all the other little things that go along it's going to help to [clears throat] uh I won't say mitigate but it it'll help to fund that to where it's not yours in my pocketbook that's going to have to inevitably come out of. So again, I encourage anyone and everyone to go to those city council or those commission meetings. If you've got questions, they they they will arrange a signup sheet if you have any questions and you know on the topics that they're discussing similar to us. Uh but

I understand I was still there. I mean it was I was there. So you you everyone gets the notices, you know, it goes out on the radio and it may not hit the newspaper when it's, you know, two days away, but there's a there's a law that they have to go by just like the council does if we call a special meeting. It has to be uh they have to give enough time to everybody could get there. Mr. Before I I roll on, I know you're you're kind of an investigative. If you get a chance, look at the city of Fort Smith and their consent decree and then do some research on how they got into that spot and what it's cost them and their their customers, right? Then ask yourself, are we doing everything as as a staff here to prevent us from ever being in that boat? Because Lord bless us for we ever get in that spot and poor people in Port Smith, we don't ever want to be there. And so everything that we do up here is has a bigger purpose to protect you the things you don't even know. And and that's that we don't really want to talk about it publicly because it's not, you know, it's not something you want to advocate for and and make aware of. We just have to fix it and be aware of it and position ourselves where you don't have the the cost of on your back. The data center generates enough revenue for us to fix it well before it ever becomes a problem. and to be ahead of the problem and not chase it and not have what happened to Fort Smith happen here and that's what our commissioners and all that's what they do and so while you're sleeping they're watching out for you I know Facebook likes to paint this as as the evil I'm the evil doer and can't do nothing wrong I've benefited in no shape form or fashion personally from this I've only suffered from being here that's all I've done and my family has suffered even more so I don't do it for any personal reason and I certainly Don't do it for any friends. Lord knows I will have less friends when I leave here than I have when I came. But I do it for you, right? Everything

I've done is every decision I make is to make this city better. And in my opinion, that man taught me that that's what leadership is. He's he groomed me. He taught me how to be a leader. And it's doing the unpopular thing even in spite of your father-in-law telling you no, you need to do this, you need to do that, you need to do what's right for the people. And in every turn, you can flip over every rock on Facebook and I promise you, you're going to find the same conclusion with me. That's all. That's all it is. I've benefited in no way for me. It's for everything I've done is for you. So with that, I would entertain a motion to place suspended rules and place on the second reading. So move second.

Second, Miss Lisa. An ordinance creating a new electric rate admitting application of the power cost adjustment and for other purposes. Could you call the role please? Oh, sorry. King, yes. Risinger, yes. Robert Thompson, yes. Baker, yes. Bradley, yes. Question. Does this have an emergency clause? We're going to get to it in a second. Just one more step. Could you read by title, please? An ordinance creating a new electric rate amending application of the power cost adjustment and for other purposes. Yeah, you have question. Uh there's no there's no no emergency calls on he wants to make it. Uh do we have motion to suspend the rules and place it on its third reading?

So moved. Second. Okay. Miss Lisa, could you call the role? Singinger? Yes. Robert Thompson? Yes. Baker? Yes. Bradley? Yes. King? Yes. Could you read by title, please? an ordinance creating a new electric rate amending application of the power cost adjustment and for other purposes. We have a motion to adopt the ordinance. So move second. Second. M Lisa, can you call the RO? Robert Thompson? Yes. Baker? Yes. Bradley? Yes. King? Yes. Russinger? Yes.

Council, thank you. And Ethan, you and Jason, thank you very much. I I can't imagine the stress you've been through trying to get to this level. And council, I'm going to tell you, it's caused me a heart attack. It's caused me ulcers. And I'm not the one doing doing the leg work on it, but Ethan, I know you guys have a lot of pressure on you from this point forward. You scrutinize everything and you ask why to everything, right? And that's what I'm asking from the commission. I put you guys on there to challenge everything, not just go with the flow. And that's what we're going to do going out and make sure that we as a city benefit from this thing. But you're watching this guy right here. You said it was dressed. I don't I don't even see that. He ain't got no hair. No, he's got

I'm just real You love what you're doing and you and you do it well. But I got a little hair left. I don't want to be like Jason, thank you very very much. Um, look forward to it, man. That's going to be for the city to for folks to understand that is a huge step. Huge step to everything. I know data centers are scary, but if they built it in for Smith or Paris or Ozark, would you feel would you feel crap crappy about it? You know what I mean? If they built them if they built it if they built it in Oklahoma, Kansas, Nebraska, North Texas, the cost to you on transmission lines don't change. You still pay the same.

Yes.

Yeah. We sent out of Google. I mean, the Google the the Google site is I would encourage you to do this. If you're going to question it at all, do what I did. Go to Lowden County, Virginia, Ashurn, Virginia. Do your research there because everything that they got done wrong, we have questioned and make sure we got done right. It's very interesting that how server farm has addressed the water. Would it surprise you? Would it amaze you if I told you, and I'm not saying this is how it's going to be, but their water consumption is less than 500,000 gallons a day when this is done? Tyson's is a million. Does that I mean, does that really scare you? I mean, so there's a lot more coming out. So, don't take things that are halftruth and not permitted and not done like an air air permit air quality permit. obviously that everybody Tyson's everybody that does put particulates in the air has to have air air quality permit. It will get done before they get a permit. That man sitting right over there, he'll make sure that gets done. It's a state requirement. We make sure the state approves it and before it those generators leave the manufacturing place, they're inspected by EPA to meet a certain threshold. And remember, this is a data center. There's not a greener business on the planet. They they do they not profess to be the greenest, cleanest business in the world. So have a little faith in some things. There's some pretty smart people up here and we'll figure it out.

Miss um Miss Hannah order. Sorry. Can we move on? Yes. You can cu in it. Y CCU. Um, you have our reports also. You should have gotten a link for last year's audit which came back. Any questions? Yeah, Miss Hannah. [clears throat]

I do have to pass out but very briefly. Um, so we saw a need with high school students standing hours, volunteer hours for graduation and, uh, led by our tourism and community director. Uh, we had a junior royals program. They've, um, helped with the Stadger Nature Trust Cleanup. We had great community responses from that. Uh, the eight seniors participating in that, we were wanting to give uh, scholarships to. So, if you or any any individual or business that would like to sponsor and has your name on one of those scholarships, we're doing $250 and $500 scholarships for those students that complete the Junior Royals program. So, keep that in mind. The second thing is home showcase, which will be this Saturday from 11 to 1 at the Marvin Vincent building. Um, we will have door prizes, swag bags for the first 100 attendees, uh, and then we have a handful of sponsors that will be hosting discussion sessions, uh, talking about their business, anything that has to do with buying, um, renovating a home or a business. We have a wide variety of vendors, uh, that will be there to be able to talk with you and give you some more information. So, um, be sure to check that out this Saturday from 11 to 1 and let me know if you want to sponsor a scholarship for one of our great seniors. We did reach out to schools all across the county. So, um, we've covered all of our school system.

How many seniors? We have eight seniors and we're wanting to give each a $500 scholarship. So, you can sponsor a full 500 if you want to do your 250. Um, however you want to to put that together. and uh we want to help them out with their graduation requirements and then also assist them as they move forward with their end. Okay, thank you very much. Thank you guys, Chief.

I have February stats for the police department. There were 836 offense violations, 113 ticket violations, 7 and 14 warning violations. There were 120 incident reports, 58 arrests, 21 accident reports. There were 16 Cases assigned and 14 Cases closed. There were zero search warrants served. There were four agency assists. There were two nlloxxone admin administered two Nox. Uh there were nine arrests for possession of choke settlements. There were 17 K9 deployments. There were 25 served warrants. There were 2,175 active warrants, 1,075 dispatch calls. There were 18 special events and there were five DWI arrest. There were 75 tasks assigned to the code abortion officer and 71% of those were completed. There were seven patrol flights and research and rescue flights for a total of 10 drone performances. I'd also like to say if I have a minute, we had a law enforcement audit with Cle law enforcement and they check all our personnel records things that nature. We also had a financial audit done uh that department passed with zero mistakes. I just want to bring that up for our clerks and our staff. They did an excellent job and we bought them lunch. Just really proud of them. Great job. Any questions?

Thank you, Chief City. Thank you, sir. Cody, [clears throat] city don't have a lot going on. If you do drive down north Montgomery, you'll see phase two of the subdivision fixing will start. Um, they should start pulling permits on the data center. Um, hopefully by the end of the week, we should have permit finished up. Um, we finished reviewing the 798 pages of their 60% sub plan. So, by the end of the week that will have a permit up to the foundation. Any questions? What's that going for the lodge between lo and interstate? What is that? Thank you very much.

I can't make them go to words. They quit. I just I just like hearing it, Steve. Steve Fisher, chairman of the airport commission. Uh, you have my written report and things are moving along and I don't really have anything. Thank you. Uh Stanley, [laughter] what's going on? Climb Park.

It'll be trout in the winter. It'll be trout in the winter. Trout. Uh just with the record, I had two two comments saying the swinging bridge wasn't a good idea because it wouldn't be ADA compliant. Can you address how that Morgan, can we make a ADA compliant swinging bridge? Morgan. Morgan, come on. Bail me out. ADA. Okay. [laughter] Can that be designed and done? Thank you very much. Make it where they can't fall in. Yeah. [laughter] All right. What about the aquatic center? I want to talk about uh because Bill ain't here, is he? No.

So, talk about um what's about to happen here with the new roof. The roof and so all the swimmers need to hear. Yeah, it's going to be interesting. The indoor pool is going to have to have the roof redone. This big guy got we talked about before had it done, but the materials are held up in Italy, I believe. So, They had to put it off and it's going to be right before our outdoor pool opens. But they said they will get it done before that. So, you know, we're just going to have to work around it.

Glenda, we found something. We may need your help cuz we didn't realize it. Up in the pool rafters, there's a basket and it's on wheels. I may need to get you to get up and roll back and forth. They haven't watched it work. Okay. Hope [laughter] and even hopefully after hours there'll be a little bit of period there where they're taking those roof panels off and putting new ones on. So hail damage. Yeah.

Wade, do you do you dare come up here again? [laughter] Uh, who's that? Who's that? Who's that? Robert. Robert. Robert. Another report that I know of. [laughter] [clears throat] Miss Lisa.

April. Yeah. MP schedule for do you know when in April? You're fired. You're so fired. You don't even know what Miss Lisa your report. [clears throat] Yeah. And by the way, whoever put that on Facebook, don't listen to that. Somebody went out there and made a fake spring cleanup thing. That ain't real. Watch the Chambers website. We'll we'll get we'll share it, Ray. We'll get you to share it. It's April. It's going to be April, but somebody went and made one and put the wrong dates. Facebook, you got to love it.

Um, motion to adjourn. We are ajourned. Thank you, council.

I think it's in January.

[laughter] Hey, Morgan. How are you doing? I want to meet with you before you leave office. Okay. Sorry about