City Council - Regular Meeting

All right. Good evening everyone. Welcome to this regular call meeting of the Temple City Council. It is five o'clock. Uh the date is March 19th. Please uh join me as um Buford Craig leads the invocation. Both the pledge to the US flag and the Texas flag will be led by Assistant City Secretary Liz Carowway. Please rise. on the courage, the industry, the honesty, and the integrity of our fellow men, that we may be mindful of their needs, grateful for their faithfulness, and faithful in our responsibilities to them through Jesus Christ our Lord. Amen. Please join me in the pledge to the US flag to the flag of the United States of America and to the republic for which it stands. One nation indivisible with liberty and justice for all. And now the pledge to the Texas flag to the Texas one God and indivisible.

Thank you both. All right, we'll be moving on to public comment. Citizens who desire to address the council in any matter may do so as long as you signed up prior to this meeting. Uh public comments will be received during this portion of the meeting. Please limit those comments to three minutes. We'll have a timer uh up on the big screen, the screens throughout the room. And we have looks like maybe six or seven folks have signed up tonight. So, we'll start out with Mr. Alan Lidle. Good evening, mayor, council, and staff. My name is Alan Lidle. I live here in Temple. Uh before I get into what I wrote down on there, I'd like to thank and I don't know what department they are in the street the folks who fixed the street signs. Mine belt mine fell down and they said, "Well, it would take a couple of days to get it fixed." That afternoon it was fixed. So, whoever they are, thank them so much. I don't remember. I don't know what department they're in, unfortunately.

You're on a VIP list somewhere. But I'd like to talk to you tonight about item 4. For those of you who have not read the agenda, it's considering adopting a resolution authorizing an advanced funding agreement with the state of Texas to construct intersection improvements at Hartrick Bluff Road and FM93 for the city of Temple with the city responsible for all costs associated with the project. Now, the in the times I've been here and the many times I've read this, I don't remember ever seeing an item on the agenda that didn't actually have a dollar figure in it. So, I had to go looking through the 5,000 pages of the packet, poor people, that you had to read. It's actually only about 5400 and something but still to find that this is talking about a $13 million project maybe estimated with the current ex current situation in the world, the price of gas going up, the price of diesel going up, the price of oil going up, all of these things will affect the price of this project because the machinery, the tar, the road base, all that is oilbased. So, we're talking about not 13 million, but maybe 15 million or maybe if it doesn't get started in too big a time, 50 million. And it doesn't matter what it is, we're going to have to pay for it. Now, that just seems kind of open open-ended to me that we really didn't want to. I know we're dealing with the state of Texas and they may not let us do it any other way, but surely we got to find some way to limit what we will be responsible for in the future. Thank you.

Yeah. Thank you, sir. Miss Sure.

So, this is for uh a project that the city of Temple has been working on in our capital improvement program to uh expand um and improve Hartrick Bluff Drive from a road uh from Waters Dair to 93. As part of the scope of that project, uh we it includes um a signal signalized intersection at Hartrick Bluff and 93. Of course, as you know, uh 93 is a state road. So, we have to get the state's permission to do work in their right ofway and there's two mechanisms that uh the state uses to do that. One of them is an advanced funding agreement and it's got a little bit of a strange name because it really it's it's it's often used when we're partnering with Tex DOT and receiving a grant, but it's also used in cases like this where they're not participating in the project, but we are working in their right of way. And so this is their mechanism to give us permission to do that work as part of our project. This is the first step in the well not the first step in the project, but this is a step in the project. You we will still bid the project. the project will come back to you for approval. So, if it is a at a budget level that you're not comfortable with, you can always reject those bids and cancel the project. This does not obligate you to do the project, but it gives you permission to do the portion of the project uh the the signalized intersection and some of the turn lanes that are in the text ride ofway where Hartrick Bluff connects to the text road.

Very good. So, the 13 million is an OPC. It's a an opinion of probable cost and the project will be bid and the uh project will be awarded by council with the actual cost and you can make that decision at that time. This is just the first step in making sure text gives us permission to do that work in their right of way. Thank you.

Okay. Okay, very good. Anything else? All right, next up, Miss Dell Brinley.

Thank you, council. My name's Neil Brinley. I live in Temple. I'm back today to ask you to pause all data center projects. I'm speaking to the whole synergy thing, your whole area where you want to bring in the data centers. I'm asking you to conduct independent audits of their claims regarding operations and water and electricity consumption as a good faith gesture to the citizens of Temple who have expressed to you at at last council meeting and many council meetings valid concerns. So far, Rowan's track record in Temple has been abysmal and yet they are asking for more. They are good salesmen. I'll give them that. But let's be sure they're honest. Let's kick the tires before we buy the gas guzzler. Since Miss Davis was hired as city attorney, request for open records fulfillment has dropped significantly, which does not lead to transparency and trust. Even the Temple Daily Telegram has noticed and been reporting on the Temple Council stonewalling tactics. You say you've been working on these data center projects a long time and yet much work is done in your workshop which leads to five to zero votes in council meetings. Most citizens work or hard they're hardworking citizens and can't keep a watch on you. When they do show up and speak, you don't listen. Your minds are already made up. In addition, there have been conflicting statements as to whether the mayor and council sign non-disclosure statements with the data centers. Which is it? Yes or no? We elect our leaders because we trust you and we we expect you to lead with wisdom. A wise council does not waste money and and on all the things that have been wasted. Um, and they sure don't allow resource guzzling data

centers to come into our community and use up our precious water and electricity. You have an opportunity before you today to write the ship and rebuild trust by pushing pause on all data center projects, conduct an audit, and do what's best for the future of our city. If their claims are true, let's find out. It's time to audit Meta and Rowan's claims before they start production. Thank you.

Thank you, Neil. Um, and I'd like to clear up the record. I actually am the one that said we had an NDA and we actually do not have an NDA. That was 100% my misstatement. I think I made that directly to you and maybe one other person the other night and I apologize for that. I was wrong. You bet. Uh, is Adam Pikes? Adam Pyers. Yes, sir. That's a K. What's that? Pikes. Pers. Got it.

Good evening, Mayor, Council, and fellow Temple residents. My name is Adam Pyers. I'm a resident here in Temple. I am known online as Adam the Angler, a disabled US Navy veteran who investigates and exposes government corruption. This is Sunshine Week. The Temple Daily Telegram just published the story Sunshine Week. Sister Press's Temple to release body camera footage in Billy Gordon death. Corporal Timothy Lawrence and Officer William Nasser were the ones responsible for Billy's death. Corporal Lawrence fired his taser, not four times, but actually five times according to the evidence that I've seen, into Billy within just a couple minutes. An unarmed, obese, disabled amputee who posed no danger to the officers whatsoever. This isn't my first rodeo exposing government corruption. I've already put the Salmon's Park Golf employees and Texas DPS on blast. garnering tens of millions of views across all of social media. This cover this cover up ultimately rests on the shoulders of city attorney Katherine Davis. Her mishandling of cases like this is exactly why the city keeps getting sued, driving up everyone's property costs. Just look at I'm sorry, property taxes. Just look at what happened after Michael Dean's death. And now she's already at risk of being sued by congressional candidate Steve Dowel for violating his First Amendment rights right here during these council meetings. I watched it live. You have continually fought me and numerous others who have foyed this case with exemptions. This is unacceptable. You cannot hide behind policy while preaching transparency during Sunshine Week. The public paid for those cameras.

The public has a right to see the footage. Council, your choice is simple and immediate. Release the full BWC footage, all of it, right now. Or keep stonewalling and watch the same spotlight that hit Sammons Park and DPS turn straight onto this city council. The public is paying attention. And let me be crystal clear. I'm not on your radar. You're on mine. Sunshine week isn't a suggestion, it's a promise. Keep your promise. Release the footage. Thank you.

My understanding the that the release of the footage is um is permissible under a couple of circumstances. One of those being whenever there's no further litigation. Footage won't be released when there's uh still pending litigation. and it requires the family's permission to do that. So neither one of those have been met. Actually, both of those I don't think that's correct. The case has already gone in front of the grand jury back in February of last year. I'm not going to debate you. Okay, that's the fact. Good. Okay. Thank you for being here. Appreciate you. Next up is is it PA Connell

the third?

Is that right? You're up, sir. Good evening. This is the first time I've ever done this, so I'm probably going to make a few uh mistakes, but I own the Gary Grahams Texico, 1312 North Third Street. I bought it in December of 24. Trying to turn it into a coffee shop, wine, beer, brewery, outdoor, food trucks. I can't get a straight answer from anybody in this. I I mean, I've got stacks of emails telling me I can do things, then I can't do them unless I do this. And I mean, I'm really here for information. I've been told I can't keep my trailers there, but in the on the this uh use standards, it says I can store my machinery. I've been told I can't keep my furniture there, and it says I can store furniture, you know. So, I'm just how do I find get to the bottom to where I need to move on? Either I need to store my M machines there for my construction company or I need to open up a coffee shop. And I mean, I just don't understand what's going on. It's hard. I know people have changed in that position and the next person has to start all over with me. So, is there a is there a way to do this? I mean, they're asking me to reszone, which now that's off the table. You know, I had a list of requests to reszone and the it

the quidd proquo for what I was getting for what I was given is is very unbalanced. So, that's off the table. So, I just want to know how do I move to the next step? I think you're at the right place with planning and zoning. We will um or I guess permitting actually, but we will get somebody on that because I I live over there. I know exactly where you're talking about. Yes, sir. And I know there's, you know, kind of been some back and forth. U so uh we'll be sure that we get somebody to make a priority of that. H how do I how how can I follow up with that statement? I mean, I I want it to be priority for myself, but

I got to do something with it. either either I just need to move my machines there and use it as storage or I need to you know do what I want to do but I mean or what I want the ultimate goal is the coffee shop is that is that the what is the ultimate goal what what's your ultimate desire there

yeah I want it to be a coffee shop with outdoor it's going to food trucks a little stage I mean it's going to be something I live on the north side as well so I mean it there's nothing up there I've been going to that gas station since I was a kid and I've wanted it forever and finally I got it and you know I want to be I I want it to be a coffee shop but like these these what I've been told and what I've read are sometimes different things. I just want to know what's what's the bare minimum for for me to get this thing going. Okay. So staff has heard me say that it will be made a priority. Yes, sir. So they they understand they understand that that's our desire. Okay. All right. All right. Thank you. See how it goes. Thank you.

Uhhuh. Looks like the last name is quick. That's me, but I didn't sign up to speak. Sorry. Okay. And it looks like a Dale got marked through. Dale somebody.

Okay. Very good. Got it. Sarah Royer. Hello everyone. I'm Sarah. I live in Temple. Nice to see you. Um, sunshine week. Happy sunshine week. It's great. Um, so I have the same kind of issues with sunshine week that I wanted to bring up. Um, I went back to see if this was really issues because the um, telegram said it was and I thought we were just kind of getting stonewalled on the data center. I didn't realize it was across the board. And so I looked up the um fulfilled records request and from the year of 19 or 2021 to 2022 we had over a 70% decrease in um approvals of records request just a 70% decrease. And then I don't know how much it is now because you stopped um you stopped being transparent with that in 2022. And um I don't I really don't want to be here. I really don't. I want to go about doing my stuff in my life, but I feel like this is such a major thing right now. Um I will read back the words that you said in 2019 when you were hiring Miss Davis. You said the city of Temple has always made it a point to be transparent and we would require that of the city at attorney. The city follows the Opens Records Act and it makes no difference to us who the city attorney is. They're going to follow it like everyone else, but that's not happening. And um I was worried about the data centers because I was really thinking you guys didn't have all the information and I honestly thought I was working on on our city's

behalf. I didn't realize it it didn't matter at this point. Um, the fact that transparency is an issue across the board is really concerning because we elect you to take care of our respon of of of us. We're like, hey, this is our community. We all live here together. We all attend the same schools and drive on the same roads and let's elect five people among us to make sure everything runs because we all have to do our job. And we elect you to be like, "Hey, cool guys. This is what we're doing. It's open. It's transparent." But that stopped happening. It stopped happening. And I'd like to know why. I don't know. When we did this in corporate, we stopped records um going out. We stopped all of them when there was one thing to hide because we didn't want anyone to figure out what that was. And that's the only time we did it in corporate. And it just I feel like I hopefully it's not happening here, but it kind of looks like it is. And I just appeal to you. You can open up the records again. You can start being transparent again. It's really easy. Um, I don't know why people have to go through the attorney general to get you guys to release records and you're still not.

It's just really frustrating. And so that's all I have to say. It's disappointing. Thank you, Joe.

I'm Joe Royer. I'm in District 2. I'm uh Yes. I want to say um me too on a couple of these points like the the transparency thing is very concerning. It's it's one thing to like have the transparency drop. It's another thing to not be transparent with how transparent you're being. That's just a whole new level here. Um uh also I want to speak to the data center topic as well. Um the two weeks ago at the last meeting we talked about how uh there's not a whole lot of history. There's not a lot of stuff going on and and you Mr. Mayor said that they've got a good his track record for doing this. But it turns out they have 12 projects currently in the works and the only one they've ever completed is Mariah which failed in the first year. So clearly they don't have any experience in actually operating one of these. So that makes it harder to find a case study. Now they do have something on their website that they call a case study. It's a four-page marketing brochure. Doesn't have any actual data in it. And uh it's about the Vox site Pennsylvania site uh project which they said was supposed to be finished end of last year and yet there's been no press release or anything. It seems like that's the sort of thing a company would want to brag about. We finished this pro building this project or it's online or we've got our first customer. Nothing. So I reached out to the local newspaper in Frederick, Pennsylvania and they said as far as they know it's not finished yet. So the only site that Rowan has actually completed is the one here in Temple that's already failed. So this is a big concern like what are they basing their projections on? Are they just imagining the things? Like there's there's not an existing case to study. So I'm I'm just concerned. I would like to see a closer eye on this. Um you also mentioned that you've got a lot of cases that you've covered in the contract, but I haven't been able to find the contract and I don't know if this is part of that transparency thing. again. Um, I've I've talked to several people and I know I'm not the only person who's been looking for it. So, I would Yeah, I would love to get more information like what is this is a contract that you signed on

behalf of the city of Temple, right? The city of Temple's over 75,000 people. We should have access to see what it is that you signed on our behalf. So, that's Yeah, I guess it goes back to transparency. Thank you.

Thank you. Just a little insight. So, it's uh the boxite project is in Frederick, Maryland. Um, I visited that project while under construction. Very interesting, very big. Um, what what Rowan does, in case we're getting some um some wires crossed here, Rowan Rowan develops the shell. They they build the shell out and then they lease that to an entity to come in and to occupy it's uh to occupy the space to put the um you know to put the servers in and to make it operational. Um so that Rowan is not a data center operator. Rowan is a data center developer that they end up basically renting it then to um a data center operator. So, uh, here on what we called the Mariah project, the, um, the, uh, the one that failed in, um, uh, out in, uh, Synergy Park, that was a Bitcoin mining operation and the Bitcoin, uh, operation failed. Rowan didn't. Rowan still owns the property. And I think somebody said maybe last week that that uh, they're gonna now use it for a warehouse. That is the most expensive warehouse that's ever been built in all the world because they spent a lot of money on it for a Bitcoin mining operation. That operation failed. Rowan still owns the building and they will now use it to stay as a construction stage point. Okay. So, Rowan didn't fail. Their uh their tenant failed and Rowan has the uh the financial capability to take on a loss like that and uh and to to to move forward. So, um, just so you know, so everyone understands that that that the quoteunquote failure is the failure of a tenant that, uh, Rowan was still able to to to manage the property after that and

is now doing something else with it. Okay, just so everyone gets it. Okay, so uh again, Rowan is not an operator. So, they don't have an up and running data center because they uh whenever they build something out, they rent it out to somebody else to the tenants specifications. So they basically, like I said, they build the shell, tenant rolls in, and then they operate their business within Rowan's shell. Okay. All right. Very good. Uh Barb Gilbertson. Oh, thank you for allowing us the time to share our concerns for what's going on in our community. Um I have just recently started knowing a little bit about the uh data centers and it does raise a bunch of questions uh to me and some of that one of them is u what is the plan to hold the data center accountable for the potential damage to our water system and our environment along with probably our some of our infrastructure. Um what funds are being held in deposit? you know, if you rent property, you have to have put a deposit down to make sure that that if there's any damage that those damages are covered by whoever did the damage. So, it I was just wondering if there's funds that Rowan or whoever is going to be manning that data center if they are being held accountable in any way. And then um so do they have plans to improve our water system? You know, if our water system can't hire or or can't solve the problem of the toxics that are in our water, what are the what are they going to do with that water? What is the Have

Yeah, if you could just inform some of us citizens that are kind of uh behind the eightball here in trying to figure this out. Um so I've heard a little bit of rumor that the like our aquafer is being depleted. So, what are they going to if if all of this water like if the temperature rises from um 84 degrees to 95, they're using a million and a half uh gallons of water a day. So where, you know, if we're sometimes in a water shortage the way it is, depending on the rain or or you know, whatever um feeding into our our lakes, what what is the out what is the solution for us as a community? We still need to water our lawns. We still need to water have water in our sinks. So you know what are some guarantees that you can give the citizens of Temple Belton because Belton is along with that is is the taking our water from the uh Lake Belton. So um okay how many of these plants have been successful and truly benefited our community? So, we need some history on how this, you know, like Meta, what is Meta doing that benefits our community a whole lot. Um, I've heard some negative things about them. I haven't heard a whole lot of positive things. Um, have these plants proven to be trustworthy in following through on their promises. So, those are some questions that I think probably the community in general would like to know if that's something you can put into the uh newspaper or or you know, however you get information out to the citizens. We would like some some um comfort in knowing that these

plants are going to truly benefit our community and not just downgrade our resources. Thank you.

You bet. Thank you, ma'am. Um, we covered a lot of that last week. Uh, 1 to two million gallons. It takes a one-time charge of 1 to two million gallons for the data center. It's a closed loop system. It has nothing to do with 84 degrees. Um, I confirmed that earlier this week with uh with an operator. whenever the data center takes on that uh the water that's needed to uh to cool their system said it's a onetime charge depending on the size of the of the size of the data center that is um take on 1 to two million gallons which 1 to2 million gallons the city of Temple uses 22 million gallons a day so 1 to two million gallons is not um is not a large amount of water and then once that 1 to two uh million gallons is in there then it's that 1 to2 million gallons again whatever let's call a million and a half gallons. That million and a half gallons in circle circulates for up to 10 years.

Up to 10 years. It's a 100% closed system. And I didn't know this until just this week. It's not even connected to the city of Temple's water system. If something were to happen and they had a a big leak or something, they would actually have to truck water in to refill the system. So, they would be taking it from Lake Belton. They will take it from the city of Temple, which gets their water from Lake Belton, right?

But it's a again, it's a onetime charge. And if you do the math, that's equivalent to about 500 gallons per day of water usage. The average home uses about 350 gallons per day. So it is it is a it is the equivalent of one to two homes water usage per day. It just is 84 degrees. That doesn't have anything to do with it. It's a 100% closed loop system. Right now, the current meta site has uh nine chillers. They're using three of them. They expect that when it gets really hot, they'll use four chillers a day. Again, they're not blowing off steam. It is a 100% closed loop system. So, you're not you can drive by in the middle of August and you're not going to see steam coming out of those chillers. How about the toxins that it creates as its way through the different

Again, we covered this last week and we we're not going to go back and forth with we don't normally do this, but whatever toxins are there um it has the the toxins if they're there um it it will be the uh the operator's responsibility. So Meta or whoever is occupying those shells, like I talked about earlier, it'll be their responsibility that that water is cleaned to a level that the city of Temple will accept before it leaves their property line. So it cannot go through their sewer system into the city of Temple sewer system unless it meets certain standards and that's monitored and tested. So that's monitored by the city of

It is. Again, we've been doing this. We've been working on this for a long time. And all the details that people are um concerned about. We've worked on those. We've discussed with this with the operators. We have contractual obligations from those operators as to what they can and can't do. We just do. I guess we'll see. Yeah. Long term,

we we absolutely will see. And the the uh the overall benefit is uh is um frankly it's a it's a even at a large tax abatement the dollars that they'll put into the community are is in the millions per year. We're not, again, we're not doing this. We're not we're not we're not doing question and answering, but it it's tax dollars um that they will pay in the form of property tax into the coffers of the city of Temple, which buys uh $13 million road projects and puts up uh signalization that builds roads that uh that that does the things that we need it to do.

So, thank you. All right, with that I will um I will close the uh public comments and we'll move on to the next item which is to receive uh the city of Temple annual comprehensive financial report for fiscal year ended September 30th, 2025. Miss Bernard.

Yes, thank you mayor and councel. Uh according to the city charter of the city of Temple, an annual independent audit is required to be made of the financial records of the city by a certified public accountant selected by the city council. The city the council has engaged the firm of Brockway, Gersbach, Franklin, and Neim PC to perform that audit. And um the city of Temple's audit tonight will be pre presented by Daniel Jones, CPA and a partner of the firm of Brockway Gers Brock and Franklin. And again, uh he has they have passed out the presentation. There's a bound copy in front of all of you. Mr. Jones,

thank you. Thanks for having me this afternoon. Uh, like she said, I have the FY25 presentation for you tonight. And I just want to start off with going over what an audit is in a nutshell. So, we verify balances, we test controls, I test activity. And of the balances we verify, we've got $1.7 billion of assets and outflows that we tested, $1.1 billion of uh liabilities and deferred inflows. We have three over $330 million in revenue, nearly $97 million in payroll. We tested controls and substantive testing on $280 million in operating expenses and on top of that combined capital asset acquisitions and debt service payments nearly $250 million. For entities that have over a million dollars in federal expenditures, we perform what's called a single audit where we test compliance and some other elements of the grants. Uh the city for this year, fiscal year 25, has $9.8 $8 million, excuse me, in federal grants and just under a million dollars in state grants. That consists of uh numerous federal funded projects, including some through the transportation department for the loop projects, uh through the EPA, the water drainage project for the historic downtown area, and several others. And our audit process culminates with our reporting phase where we assist the city of Temple's finance department in reviewing and assisting with the annual report. Inside there, you'll see the uh annual the independent auditor's report where our opinion is unmodified, which is to say it's a clean opinion. And additionally, we'd like to point out that there were no material weaknesses to report, nor were there any significant deficiencies to report. And so, let's go through some highlights for fiscal year 25. I start with the

expansion of the city. As you have seen over the past well numerous years, the population is at about 98,000 which is up about 3% from the previous previous year and nearly 20% growth since u five years back. The local economy is booming and one metricing you can see is the number of permits that are issued every year. So over 13,000 permits were issued on uh over $137 million of uh new growth. And as uh you already know, several companies continue to come to town, including several that were mentioned previously and and the development of the Northwest uh business sector. And then all that growth leads to higher revenues. We've got 16.8% increase in charges for services, property taxes up 8 and a half%, sales tax a modest 2.7%. And finally, $22 million of operating grants, capital grants, and contributions of in infrastructure from developers. As revenues go up, need for services expand, and expenditures go up, $3 million higher on the governmental side, water, sewer side, up $5.6 billion. And so the bottom line to all that is uh a $25.5 million increase of your uh net position, your equity that that is your revenues exceeded your expenses by $25.5 million. And that includes $7.2 million in contribut contributed infrastructure from various uh developers. And next we'll talk about the city's investment in the future. So the capital assets is obviously one we can still see through town. We've got $139 million of capital asset acquisitions. Uh amongst that is $32.6 million invested in the reinvestment zone. Oftentimes funding from those for those

capital assets comes from debt issuances. And so for FY25 we've got over $200 million in bonds issued, another six point $6.6 million in notes. within that the uh reinvestment zone itself has $8.8 million bond issuances. Also worth noting is that there was a re um refunding bond for this past year and that resulted in an economic gain of $2.5 million to the city and in addition to capital assets uh the city invests in in its employees and other personnel. So we've got pension liabilities for both the fireman and the TMRS pension. the liabilities have decreased both $5.6 million and $2.1 million respectively. Similarly, the other post-employment benefits liability um that one actually went up but very modestly, $42,000. And now we'll look at some uh historical data on revenues. So water sewer services in your water wastewater department steady increase as you would expect as population grows more meters come online governmental services being your next largest revenue stream which consists of a variety of uh sources within that property tax as I mentioned earlier is up eight and a half% at 53.4 million sales tax modest improvement from 37.8 to 37.8 38.8 rather franchise fees, grants and contributions will vary year to year depending on progress on grant funed projects uh how the the timing of developments coming online and the assets the contributed infrastructure coming to the city and finally interest another on the expense side this will be by

major function water sewer again being your largest activity slight increase or somewhat of an increase that mirrors your revenue. Most of these will re u trend in the same fashion as your revenues public safety being your next largest uh police department, fire, etc. General 7 uh.7 million increase culture and leisure, the parks department and others, highways and streets, sanitation and all others. So you can see they each of these categories increase consistently year-toear that mirrors the revenue increases. Our next slide uh this will be the breakout of your equity your net position. So you've got three categories restricted, unrestricted and your net investment capital assets. The the main point of this slide would be to show the magnitude of what the city has invested. So here for FY25, $450 51 million of net capital assets that is your your um fixed asset balance less your related uh debt issuances in simple terms and uh it's a pretty significant amount. But what's not on the slide I should also mention is your general fund fund balance that's unassigned of $32.8 $8 million is a very healthy balance. That's $2.75 months of expenditures. And on the wastewater side, $18.9 million of unrestricted net position. That would represent 3.9 months of expenditures. Both very healthy positions to be in. And staking in the same theme of investment in the city and the future, we've got the reinvestment zone. So this is a breakout of the various components of the reinvestment zones u

assets. So we've got a rather large uh component of infrastructure at nearly $200 million. So within that you'd see many projects which would include uh the outer loop windland road project downtown city center the han uh han project Santa Fe market and a multitude of others. And I'd like to conclude with pointing out that uh the city with the city's finance department has for the last 30 years received a distinguished budget presentation award from the government finance officers association and 44 years consecutively being recognized for the certificate of achievement for uh excellence in financial reporting. Those are all are both very significant achievements. Does anyone have any questions on any of that?

So, you mentioned the um the rainy day funds of the major the the the rainy day balance of the major funds. What typically um what are other cities doing? I mean, I believe you guys do a lot of municipal work. Yes. So, what kind of what typically what is that balance? A lot of people shoot for 25%. Okay. So, three months. Is that what right here? You're you're shooting for four, I think 33%. You know, it's going to vary. You know, as you're if you look at your components of uh fund balance on the general fund side,

council can decide to assign a variety of uh projects, certain points of that fund balance. So, as that moves up, your your available for being unrestricted goes down, but you're still at uh I think it's 25% or close to close to three months, like I said, 2.75, I think. So, it's still healthy. Yes. Okay. And what's the advantage or disadvantage to having balances like that? Availability to take on things that were unanticipated. Helps with bond ratings also. Right. You might not want to consider it similar to working capital like on a business side, but it's got some similarity.

Okay. When you have a tornado roll through and you need to pay five million bucks for something, it's nice to have that on hand. Yeah. Yeah. Okay. All right. Very good. Council, anything else for Mr. Jones? Um, that one's working. That is working.

That one's working. We did not actually dip into the rainy day restricted fund balance to respond to the tornado. We used fund balance that is um unrestricted for um for that response. And so I often say it has to be raining really hard in the city of Temple for us to be touching that uh fund balance. So that really is for the the most severe of financial circumstances. Um we we are very conservative and we try very hard. I I have never um I've been here for 18 years and I have never seen a penny spent out of the rainy day fund. It it truly is for big emergencies. Very good. Thank you.

I'll add to that, mayor. I've been here 33 years and I've never seen a penny spin out of Yeah, that's good. Just for the record. Very good. Council, anything else for Mr. Jones? Thank you. It's a pleasure. Um, we've for years we've had Steve Neim right here. So, um, we're coming up, excuse me, on the anniversary. We are. When didn't he pass in the spring of us? April 9th, pardon? April 9th. Okay. Coming up. Yeah. So, um, I've, uh, I've been in a couple of these presentations that you've done. And, um, although we miss Steve. Yes. Uh, you do a very good job and we appreciate the thoroughess of that.

Appreciate it. Thank you. You bet. It's a pleasure. Pleasure. Thank you.

All right. Moving on to the consent agenda. All items listed under this section are are be considered routine by the city council and may be enacted in one motion. If discussion is uh desired by the council, any item may be removed from the consent at the request of any council member and will be considered separately. Um council and workshop we discussed that we would be removing uh item G tonight from the consent for voting purposes. Um is there anything else that needs to be removed for separate consideration? All good. All right. And council, at this time, I'll entertain a motion on the consent agenda, which is items 4 A through 4N minus item Gente A through item.

Second. Have a motion by Council Member Pilington. We have a second by Council Member Kirkindall. Council, please cast your vote. Is anybody's working yet? There we go. Consent agenda. Uh, item A through Nless G passes five votes to zero. Moving on to item G is consider adopting a resolution authorizing contract amendment number three to the professional services agreement with Clark Associates PLLC of Temple for bidding and construction phase services required for Poison Oak Road realignment phase 2 in the estimated amount of $345,000. Council, is there any questions on item G? Okay, I'll entertain a motion uh on item G. Make a motion to approve item G.

We have a motion by Mayor Pro Tim Walker. We have a second by Council Member Grant. Council, please cast your vote. Item 4G passes. Four votes yes, zero votes no, and one abstension. Moving on to the regular agenda. Um item number five is a public hearing to be con u to consider adopting an ordinance authorizing a resoning request for multiple family dwelling two to two family dwelling on 9.24 24 plus or minus acres located in block one lots 10 through 39 Lake Point Terrace phase 4 subdivision city of Temple Bell County, Texas. Address is 11:02 and 1138 Stone Valley Road and 11:01 through 1121 Ribby Road. Mr. Stewart.

Yes. Evening. This is a reasonzoning request for about 30 lots in the Lake Point Terrace subdivision. So, it's located pretty much along State Highway 317 across the highway from Lake Belton High School. And the zoning for that area is multifamily 2, but the surrounding subdivision is single family 2. Uh the background for this is that we identified this during the building permits process originally with the previous planning director. Uh five had been approved or 12 had been approved. Five of them have been sold and constructed already and they did that through an administrative adjustment of 10 to 15%. And so their side setback was six feet and we required them under their we require under our zoning to have a five foot. We required under our zoning to have them have a six foot side and what they had constructed was five feet. So when it came back through with our new planning director and it got flagged again during the building permit process, we said that they had to go through a reszoning request to clean this up. So what we were changing it from was from multif family to 2F to where they have a side five yard five foot sideyard side setback. So here we have some of the photos uh on Riby Road. Nothing's been constructed yet. Same thing with Millie Lane. But when we go over to Stone Valley, those are the ones that have already been constructed. For our future development plan, this is primarily residential and neighborhood services. Uh, a little bit along the State Highway 317 corridor, we have corridor mixed use, and that allows a little bit higher density and intensity of uses, but for this part in the subdivision, it's mainly just residential and neighborhood services. So the appropriate zoning districts for that area are going to be your single

family zoning districts of SF1, SF2, SF3, neighborhood services and plan developments. And then on a limited or conditional basis, sometimes we'll allow for two family dwellings. Town homes are single family attached. So we find that multifamily 2 is going to be incompatible with our future land use plan for this area. uh for the thoroughares and trails master plan. This isn't along a art road or a collector. So it's kind of inappropriate to have multifamily zoning here because we just don't have the infrastructure for all that traffic. So we're downzoning it down to duplexes and 2F to make sure it's in line with the surrounding subdivision and that we just don't have the amount of density and intensity of uses with public utilities. It was addressed during the platting stage. So, uh, they have a 6- in water line and a 6-in sewer line along Stone Valley Road that cuts over to Ribby Road, and it's just the same connection for the rest of the subdivision. We did send out public notifications in the newspaper on February 19th. And then we also sent out 43 notices to property owners in the area. And we did get six responses in disagreement, but most of their responses that they wrote down were that they didn't want more density, they didn't want multif family uses. So they might have had a misunderstanding of what the reasonzoning was that we're downzoning it to prevent multifamily from being in place here. And just to clarify, because if we were to have a disagreement and you guys were to vote against this, that means it remains multifamily and somebody potentially in the future could replant the property and put a apartment or some type of multif family development on there with the re with if you guys were to approve it, that means the highest intensity that can go on this would be a duplex. So staff recommends approval and then PNZ on their March 2nd meeting also

recommends approval with a vote seven to zero. Were there any questions? I asked you out there and you've already explained it. I just want to make sure that we got all the letters or the disagreement letters on this to make sure they're standing. We are basically trading a one- foot setback for them not being able to build an apartment complex over there, which they currently could. Yes. So, we're we're that's pretty good for the citizens in that area, I think.

Thank you, Mr. Stewart. Council, I'll entertain a motion on item five. I move to 315 as present. Oh, public hearing. Oh, I'm sorry. I'm sorry. My mistake. Going too fast. At this time, I'll open the public hearing. Anyone wishing to speak may do so. Please step to the podium. Want to make sure Ellen's keeping us straight. So, after all that, you're not even going to speak. Get up there. Call me out on the carpet. Brien called me out on the carpet about the rainy day fund.

Alan Lidle live here in Temple. Just a comment for this poor this bunch. I hope that the people who they hire to cut their backyards don't have large lawnmowers because it won't fit through the three-foot gates which is all they can put on either side of those because of the lost one foot. I'm always sort of amazed at the things that you comment on. Yep. Yep. That's keep us in check. Anybody else? Allan, at this time I'll close the public hearing and I'll entertain a motion on item five. I'll move to approve item five as presented.

Second. We have a motion by Council Member Pilington. We have a second by Council Member Kirkindall. Council, please cast your vote. Item five passes five votes to zero. Item six is the first reading of public hearing to consider adopting an ordinance designating approximately 270 acres in Synergy Park located generally in the area adjacent to and north of the intersection of Southeast HK Dodge and Loop and the Burlington Northern Santa Fe rail line and further identified as property ID numbers 312000127003 6489 397098 847064 and 704 as city of Temple tax abatement reinvestment zone number 49 for commercial and industrial tax abatement. Miss Thomas,

good afternoon, mayor and council. Um, as you just read in, you're here to consider um on first reading uh the creation of a tax abatement reinvestment zone. Uh council may designate an area as a TARS if the designation is likely to contribute to the retention or expansion of primary employment for attract major investment in the zone that would benefit uh the property and contribute to the economic development of the city. Council can consider designating a tax abatement reinvestment zone and authorize an abatement if at least two of the following criteria are met. The project involves a minimum increase in property value of 300% for construction of a new facility or 50% for expansion of an existing facility. The project makes a substantial contribution to redevelopment efforts or strategic economic development programs. The project has high visibility image impact or is of significantly higher level of development quality. The project is in an area that might not otherwise be developed. The project can serve as a prototype and catalyst for other developments of a higher standard. the project stimulates desired concentrations of employment or commercial activity or the project generates greater employment than would otherwise be achieved. On October 2nd uh 2025, council approved a tax abatement agreement with Rowan Temple LLC to abate a percentage of the increases in the taxable value of approximately 554 acres in Synergy Park. That agreement contained a provision that automatically includes future Rowan projects under the terms of the original tax abatement agreement if included in a TARS. On the agenda today is the first reading of the ordinance that will create a TARS for that project. Um, as you may be aware, uh, Rowan is considering the development of one or

more data centers, um, that will be used to house and which are operated, um, and which will be maintained and replaced from time to time computer systems and associated components such as telecommunications and storage systems, cooling systems, power supplies and systems for managing property performance and equipment used for the transformation, transmission, distribution, and management of electricity, internet related equipment, data communication connections, environmental controls and security devices, structures and site features, as well as certain accessory uses, uses or buildings located on the land. Um, Rowan plans to invest at least $700 million in the construction and installation of improvements for the project and uh create at least 40 new full-time jobs. staff believes that this project meets the various criteria in the city's standards for tax abatement. The project involves a minimum increase in property uh value of 300% for construction of a new facility or 50% for expansion of an existing facility. The project makes a sub substantial con contribution to redevelopment efforts or strategic economic development programs. The project has high visibility, image impact or is of a significantly higher level of development quality. The project can serve as a prototype and catalyst for other developments of a high standard. The project stimulates desired concentrations of employment or commercial activity. The project will also expand the employment base, attract major investment, and contribute to economic development in the city as required by chapter 312 of the tax code. And with that, I will entertain any questions.

Thank you, ma'am. Council, anything for Miss Thomas?

Very good. If there's uh I will open the public hearing. Anyone wish to speak on this matter may do so. Ask you step to the podium and state your name, please. Live here in Temple. Um, first reading here has generally located. So, it doesn't actually say exactly where this is. And I've in my times of looking at properties, I've noticed that most properties that are adjacent have just, you know, one number difference. You know, 1501, 1502, etc., etc. These are all different numbers. Are these all adjacent properties linked together or are they just separate little places? They're they're all adjacent.

It's all one big all those all those create um approximately 270 acres of contiguous property. Okay. Thank you.

Bit now Brenley. It seems like the more I learn about Rowan, the murkier it gets. So if I'm understanding correctly, they are the developer, not the data center. They lease to who knows who. I mean, somebody knows who. Who holds the leasing agent accountable? How is that done? We're entering into an agreement with Rowan. I get that. I want Temple to develop. I'm all for good, clean development. But who holds everybody accountable? How do we know who's even coming in? I mean, this just gets more and more confusing. And I understand you don't want to debate with us here. I got it. I know everybody's time's precious. But I would urge you, mayor, to have a a town hall and explain this to the people. I mean, yes, y'all been working on it a long time, but we're just now hearing about this and it doesn't sound right to me and I want to be able to trust my government. So, I'm just asking you to slow down, research it, be sure you know who's accountable, and who I mean, we don't even, like you said, we don't even know what the contract is you've signed. I mean, we know you've given them water. We don't know really what they're going to put in that water, and it's going to have to come out sometime. And there's all kind of questions about is a closed loop system even a closed

loop system. I mean this is all new territory. So I'm just asking you to please communicate with the people and and do do due diligence. I mean I know y'all are wonderful business people. I get it and I'm not. But I'm just telling you the more I hear the more confusing it gets. Thank you, ma'am. Who else? Yes, sir. So, this is this is Joe Royer with live in district 2. Um, so this is about tax abatement. And so, if I understand this correctly, they're pledging to contribute 700 million to the community. Um, and that's after the tax abatement. Correct.

That's what it's going to cost for them to build the facility. going to invest $700 million in the shell like we talked about

because when I spoke to them at their open house a couple weeks ago, they said that they were contributing 700 million to the community in the form of of salaries and uh tax property taxes that they're going to pay. And I asked over what period and they said it's it's going to be over 20 years. So they're they're basically implying that the community benefit is about 35 million a year. Whether that's that's not necessarily all taxes, that could be, you know, job construction jobs that they're creating. Um um is is this going to hold true even if their their client checks out? I'm curious like what happened with the Mariah's thing when when the Bitcoin miner went away. Are they still they're still I assume they're still paying taxes on that property? Still the owners of the property. Yeah. Yep.

So even if their client fails and they're not making any money on it, they're still giving us the tax revenue. They're still responsible. Again, it's it's the contract. They have a contract. Um uh and and nowhere in that contract does it say and if you fail or if your tenant fails then all these requirements go away. There's no out. All right. There's no out.

And when I spoke to them at the uh at their open house event a couple weeks ago, they said that this facility is actually going to cost them closer to 1.2 million, but that they they've committed to get to putting 700 million back into the community. But again, it's it's that over 20 years that had me a little concerned like this is, you know, this comes out to 35 million and again, that's not necessarily all tax revenue. So, we're it's not clear where that money is going or how that money is coming to us. Right. There may be misunderstanding in the numbers.

They're going to spend $700 million to buy to buy and construct on that piece of property. Then there's a tenant. Remember that $700 million for the shell. the Nintendo's going to come in and they're going to put their own servers in and they're going to do everything it takes them to get up and running. And I'm sure that's where the 1.2 billion's coming from. So, it's expected that just by doing the math, if 1.2 is what you were told, then the um then there'll be 500 million of investment by the tenant. Mayor, the $700 million commitment is the total commitment for the project, which is inclusive of real property improvements by the developer. They, excuse me, they uh may also use personal property improvements, whether they do them directly or they have an affiliate or tenant do them. But uh the developer remains u responsible for the total capital investment and all of the requirements in the tax abatement agreement. if they do not meet the minimum tax abatement, I'm sorry, the minimum capital investment or job uh creation numbers or they do not maintain that through continuous operations during the full term of the agreement, the tax abatement is uh void and they do not receive uh the benefit of that tax abatement. So if they do not meet the capital investment or they do not maintain uh the data center as an operating data center uh whether directly themselves or through a tenant then they are out of compliance with the agreement and they uh do not get the benefit of the tax abatement agreement.

What is the term of the contract? 10 years. They can do more. They just can't do less. They can't do less. They can do more. And that's common for uh companies to invest more than they um make the commitment for because again if they don't make the if they're $1 shy of making the commitment then they do not qualify for um the abatement. Yes sir. And how much is the tax abatement? 50%. I'm out of questions for the moment. Thank you. Yeah,

I have a question. Um, so this is the you guys can give a tax abatements to any more data centers coming in as long as they're this or bigger, right? That's what this is for. You can just keep giving more and more abatements without asking the city at all. Is that what I don't understand what this is for?

This creates a specific geographic area that um if the company makes a $700 million investment and creates 40 jobs within this specific geographic area, then they're eligible for a tax abatement here. It does not guarantee any future council uh still has to approve any future geographic designations that the company may or may not you know they if they if they do anything further. But this is just for a spec this specific geographic area.

So as many data centers as they can put into this 554 acres, it's okay as long as they're meeting the numbers because it says for any extras being built. Like anything just like this being built in this area would automatically get tax abatements, right?

No, it has to be within the specific geographic boundaries. So it's it's a project that they've proposed. Um, so it they would have to meet all the other development and zoning standards. So, you know, they can put one or more data centers on this property as long as it fits within the other zoning requirements. Um, but this tax abatement uh zone is a is is a specific geographic area. It doesn't trigger additional it if and maybe I'm misunderstanding your question. If if they're looking at building a a project somewhere else, this would not cover that,

right? But they they alluded to the fact that there were three and maybe four data centers that they were looking to build in Temple. And since we haven't heard about that, but things keep getting pushed through, I'm asking if this gets pushed through, it says that you can keep giving more tax abatements if they build the same type of project or bigger or better. if I if they they build more than one building, like if they if they build one large building or four small buildings, it doesn't matter as long as there's an at least a $700 million investment on that property. So, it doesn't specify that it has to be one facility or multiple smaller facilities. It's just it has to be at least a $700 million investment for it to qualify. How many data centers have they proposed to build on that land?

Um, I believe two buildings.

And is that all we're going to allow them to build or is it up in the air to they can build more? They're allowed to if if they want because they we have on audio that they're going to do three and then when they talked about the how long the construction was going to be, it kind of alluded to four. So, I'm just trying to be clear since nothing's really transparent. I uh you know I don't know that the city knows that um they are they they can build what they are allowed to build while meeting building code and and their plat. Um so the the smaller the building, the more buildings they could put on there. If they put larger buildings, then it's going to allow them to put less buildings. And so I don't know um their final plans for you know exactly what they um are going to do but they are able to put what will fit on that property and meet all the standards.

So let's say they come to you and they say we want a third data center. What happens on that piece of property? Yep. if they um if they can fit on the property and meet the zoning, platting, and uh development standards and uh it doesn't use any more than 4,000 gallons of water per day, which is the contractual limit, then they can develop it there. Um Rowan, they said that they alluded to they the guy said it and then the other one said maybe um that the contract was with Meta. Does Rowan have a contract with Meta also for water? That would be a question for Rowan. I I don't know.

You guys should know because you allow it. Like, do they have a contract to use Meta's water at all? That would be a question for Rowan. That's an interesting tell. Thank you.

Anybody else? Marge. And when it gets this late, I ramble. Margie Frasier, Temple, Texas. Um, one of the things I want to know is what is in escrow to the city for this project? Do we have some kind of escrow going on in here? Do you know what I'm talking about? Uhhuh. So, what's the escrow? I mean, you're talking about, you're saying $700 million project. Is that what I'm hearing?

They don't they don't put anything on account with city. So, they don't put anything. So if they build this shell and nothing goes in there and take back off to Australia because the company is an Australian company from what I understand. How you going to go after them? What are you going to do really? I mean you can sue from here to there but will you get your money back?

It's not investing any money upfront. It's just a a tax abatement agreement that abates taxes that are paid. you're talking about. Yes, I know. And cities can get locked in and lose revenue for through projects like this. You lose revenue, then you're going to have to go after the citizens for money to help take care of your city services. So, I'm looking at is this a win or is this a loss? We're not God. We don't know the future. And 10 years from now, the future changes. nowadays quickly for some reason. But y'all don't seem to be looking at the near term at all. You're just looking at what you're seeing is money. And money is the root of all evil because we look at it from man's eyes, not God's eyes. And God can sink a ship really quick. And if you all don't start looking at the actual facts and really studying this company, you're saying they got a lot of money. You don't know that from Adam. Have you studied all their financial records? Have you looked into them? Yes. Have they given you their bank records? That's what you're saying. You have.

Yes, ma'am. I have. And so they've got over $700 million in They're a billion dollar company. You know that for a fact. They are. Okay. We're gonna have to take your word for that because I know how people can do and you can AI can do anything nowadays. I guarantee it. If they don't pay their taxes, it's no different than anybody else that doesn't pay their tax bill.

This is a taxation. at this point. So the only thing that would occur future tax revenue doesn't finan if they don't pay except for the taxes. would have received anybody. Yeah, the same thing. Correct.

Same way to go after these people as you would anybody else that wouldn't pay taxes. Correct. So you can say that about anything. having a hard time hearing. So,

also um along the same lines that Miss Myers was pointing out, I have been asked before what the city of Temple paid Rowan just in a fee to come here. And I've also been asked what Rowan paid the city of Temple in a fee to come here. And neither one of those things have happened. So, um, you know, to to the point that the city of Temple is not outlaying any cash. The city of Temple is not outlaying any cash whatsoever to get this deal done. We didn't buy this deal. We didn't um the city of Temple didn't do anything. Rowan decided that this was a good place to locate and is now locating here. Then we worked out an economic development agreement with them that uh is satisfactory to both sides. Anything else for the public hearing? anybody?

Um, okay. So, these are things we know about Rowan. Rowan, um, came here, made one data center, it failed. They're making then they got a huge influx of cash based on their tenant failed. Well, and then they left and they still paid their tax. That's fine. Rowan did,

right? But they said it was closed and that's how they left it. And then they came back and said, "Hey, again, let's do this again." And so they got a huge influx in cash. I've looked up Rowan and um they are a billion-dollar company but with investment money, right? Um it's all investment money and um what I know about here's what I know about closed loop systems and I know you guys know this too and that's what makes this frustrating. Closed loop systems based on meta data based on the newest data out um it takes 5 million gallons of water a day to cool off these systems if it's over 84 to 90 degrees. This is true. Um it's based on Meta's data just from this year. So closed loop system um resolves 80% of that. So as soon as it gets warm, they need about a million gallons a day on the warm days. And I know it's not warm very often here in Texas, so it's not a big deal. But um when it does get hot, then they need that water. So I'm sitting here thinking, how are you guys only giving them 4,000 gallons? Well, it makes sense if they put an agreement in with Meta and Meta's able to do whatever they want. And you've already admitted there are some mistakes there. So, if they're pulling the water in from Meta, we're still losing, every time this gets hot, we're still losing a lot of water. And it's still about the water. We have a water crisis. Every single basin, every single aquifer is having a huge issue right now. And all we want to do is audit to make sure this extra water that they're saying they're not using, but we the it would be interesting. I would love to come to your office and show you all the audio recording we have of Rowan because a lot of the things they said that an engineer said is not what you're saying. And so either they're lying, well, I'm just going to say they're lying because I actually like you guys. So they're lying. Um and if they're lying, then it doesn't matter what they're showing us. They gave us a report. They sent it over. Oh, here's

our report on how well um Maryland's doing. It's not even open. They And how do we know they make the best data centers? They haven't made one yet. They're constructing it. And then who's responsible if something messes up? If there is a water spill, uh it's just the leaser and then Rowan's off the hook. There's just so many issues pushing a bunch of stuff through before we actually know the truth. And I'm talking about the citizens, but I'm also talking about you guys because either you've been bamboozled or you're bamboozling us and I'd rather not believe that. So that's all. Mayor, I did want to make one point of clarification because I might not have understood Sarah's original question. The uh water contract is for the project as a whole, whether it is um operated by an owner or a tenant. So the 4,000galon limit is for the project um as a whole. So that that's all in Rowan and any uh of Rowan's tenants cannot use more than 4,000 gallons of water a day. That's a hard contractual limit that we uh will can enforce in multiple ways including through mechanically limiting devices. There will also be um a advanced meter on uh that uh uh that meter that will allow us to um have real-time data on the water use. So I may have misunderstood the the original question. I I don't know and I'm not uh it's you know any any agreement specifically between how that 4,000 4,000 gallons is allocated between the developer and tenant would you know would be up to them. But we have a limit of 4,000 gallons a day for the project as uh as a whole.

Would would you also because I've said it and maybe I'm not saying it well. Would you also clarify please the difference between the 4,000 gallons of daily usage versus the closed loop water system and and how many gallons that can um that can use.

The contract allows for two things. It allows for one two million up to 2 million gallon initial charge of the closed loop system which has to be done at a time that is agreed upon by the city of Temple. So, um, for example, in a day that, uh, is a lower use day for our system, we, as mayor, you mentioned, we can easily accommodate that on a one-time basis. And then going forward, uh, on a daily limit, there's a 4,000galon a day hard contractual limit for the project itself. Um, so that's that's the daily use for the project. Can that 4,000 gallons be put into the 2 million gallon system?

No. So the 4,000 gallons would be for daily usage, flushing toilets, drinking water, in the kitchen, um, whatever. But, but that's domestic use essentially. And it's one is

and the contract separates the domestic use from the industrial use. And then the in industrial waste water as you mentioned has to either be treated to domestic standards before being discharged or they must discharge it um in through uh means other than through the city system. Meaning they you know can hire a company to um to dispose of uh the waste water somewhere else. but it will only come into our system if it's been pre-treated to um domestic standards and we do testing of that at the discharge point um on a quarterly basis. I believe

I have Rowan on um audio saying that they don't treat water and they don't ever treat water. So I'm not sure about that. But I do know um how much water is Meta allowed to use a day. What is that? Meta is Meta is using the same closed loop system.

So I I would um under the before before there was a water issue before we also knew data centers. So I'm not upset about something signed in 2019. We know better now, right? We didn't know then. But um based on Texas lawn what Meta was doing, they agreed to uh up to 5 million gallons a day and they promised it wouldn't use more than a million and a half a day. So are they are they using that or what is their topofthe- line most they can use a day? I don't know what their domestic use is. According to the study that they said this is just like um they can use up to a million and a half a day. So my question is if

they don't change they they have since moved to the I don't want to get into a long story but I think this this speaks to that. Remember when Meta first came to Temple and here okay so in 2018 sorry this a bit of a story but let me let me get there please. um in 2018, 19, 20, whenever that was, um Meta uh came to town. We put together an agreement with them and uh and they were going to use uh sort of an older form of service, right? And then through all that, they were under construction for nine months to a year.

They stopped construction. They did that in a uh a facility obviously in Temple and then I believe one in Iowa. They have two data centers at the time that were tracking along. It just depended on basically the weather as to whether the city of Temple would open first before the Iowa plan or vice versa. So at the time they stopped all construction at all of their sites. And here in Temple they ripped out I have heard I'm not even going to give a number because I've heard it's all over the place. I don't want an incorrect number showing up in your paper.

So I don't know how but it was tens of millions of dollars. ripped all that out and um and then they they they sort of put the uh the project on the back burner because what they were doing is they were then switching over their servers from the from you know 1.1 over to 1.2. They were upgrading the type of server that they used which uh was able to uh compute four or five times faster. Again, don't I don't know. I sell insurance faster than the other ones, okay? And they were more efficient and they cooled easier.

It was more it was simpler to cool them. So they spent a lot of money uh basically putting everything on hold, ripping out old infrastructure. Evidently, the the infrastructure that they had put in for the first type of server wouldn't work correctly for the second type of server. So they ripped it all out. And um and with that is when the uh the the they took advantage of the technological advance that allowed for instead of these openloop systems that allowed lots of gallons per day to be used to these closed loop systems that are able to um to now uh cool these servers uh more efficiently. My conversations I had this week with uh someone that is absolutely in the know that operates data centers is all they're trying to do in that closed loop system and whenever they run the water through those chillers that are closed also that are not emitting a bunch of steam which would then require filling up the uh the cooling system more frequently. All they're doing is they are lowering the water temperature about seven degrees. That's their whenever they can achieve a seven degree uh um difference from whenever it went into the system versus whenever they cool it and they when it came out of the system, cool it down just seven degrees and they're able to put it back through the system. That's all those chillers do. Like I said, they have nine of them online. They have nine available right now. They're using three to achieve dur during this time of year to achieve that seven degree difference. And whenever they need to fire up another one, they're able to do that with the flip of a switch. They turn on another chiller, which again um when when that's needed to be able to lower that temperature just seven degrees in a pressurized system.

So everything we're talking about how again a million and a half gallons, whatever they're using of pressurized water. It's like the radiator in your car. As soon as you pop the radiator cap, what happens in your car? Steam blows out. you've got to put more water in.

That's what So, what they are using is they are using basically a huge uh system like your car has that has a radiator in it that's closed off and it's pressurized all the time. If they were losing water to steam, it would be very difficult to pressurize that. So, my understanding closed loop systems that I've been studying the past couple weeks and based on um El Paso, Meta did a whole study in El Paso and it's the same system that's here and they bragged about it because it's a closed loop system and they went from having se combating 70% um water to saving 80% of the water, you know, not using it, which is great. And so El Paso was really happy about it because that means worst case scenario, the aggregate water use would be about 400,000 gallons a day and that was approved. That's fine. You know, everybody was cool with that number. And then um

so they were using 2 million gallons a day cooling and then discharging 1.6 million with a net loss of 400,000. Is that what you're saying?

No, I'm saying that. Okay. So the way I understand water things and maybe this is why we should have a town hall so we could have someone actually say it but the way I understand it based on engineers telling me is the water goes through a closed loop system and this water never goes out if it has a spill or something. There's a lot of things in process. It's not the chemicals could be bad but it's all caught. It's they've got safety features in it. So this closed loop system, it's doing the water, but the closed loop system cools the um it takes to simplify it. It's really more complicated this than this, but to simplify it, um all of the machines are hot are getting hot because it's a data center, right? And when they get too hot, they stop working. And that you can't have the machines stop working. They slow down and that's when, you know, chat GPT is frozen or something. I'm kidding. and I'm making light of it, but you know it it causes issues because it slows the computers down and meta does not want that. No data center wants that. So they start circulating this water and when the water goes through it cools off the system but it raises the degree of the water and the water goes through chillers and it goes back through and this all works until it's a certain degree outside and then when this chiller goes through it stops being able to cool the system as quickly. So they use additional water. This is what a closed loop system actually is. and there's video evidence of it. They use additional water. It only saves 80% of the water. The additional water is on the very hot moments and they put the water on the closed loop system to cool the pipes so it can then go back through because at some point the water matches the temperature of the data center because you can't just keep cooling it and it works. Like at some point there's not enough um degree difference to make a a real impact on very hot days. And I've been through some very hot days here. So that's when they use all the water. And so they'll use like one and a

half million gallons max, right? On very very hot days. And so that's worst case scenario. I keep throwing out that number, but we've had a lot of hot days here. So it's a realistic number for us. Um and that water, the runoff has toxins that go back into it goes into the drains, it goes into wherever. And those toxins are not able to be filtered out at the city level. Um it's very difficult for it. That's my That's one of the big issues. So when they went same center, they said the El Paso Center, same center. When they went and audited um El Paso because the citizens had to because the city wouldn't and so the citizens did. Um Meta was using 750,000 gallons a day. And so these are the things that concern us. And if Meta is the person who is who is going to be the operator here, they already have a water agreement. So, it makes sense that you only need 4,000. It's closed loop. I know what closed loop means. It makes me feel like we're juvenile when everyone says, "Oh, it's closed loop. There's no more water." Yet, scientifically, there is. There's one company, and it's under patent. There's one company, Microsoft, who has a major system that is truly closed loop. There's other issues with it, but it would be phenomenal. But that system alone for this project, for one project, would cost 1.5 billion. So, I know they're not using that just based on numbers. So, they're actually using a lot of water. And it would make sense they would take it to Meta if Meta already has water contracts. So, my question is, how much water can Meta have a day?

Cannot use any water outside of their um corporate their boundaries in the North Industrial Park. Their water agreement is limited to their project in the North Industrial Park. There's no way they can transport the water. They cannot. They're not there's no line going over there.

No. And also they're not physically able to do it and they're not legally able to do it. Their water is for their campus and it's defined by the project which is which is has a both a geographic and a description in the contract. And so Meta is for META and Rowan's is for Rowan and 4,000 gallons is the total daily limit for the data center project that council is considering. Okay. So if Meta comes over to the Rowan building, which they said they were, if Meta is using the Rowan building, they can't use any water from their contract ever to augment the correct the building in Rowan.

That's correct.

So then I guess my other question would be why aren't why can't we have this audited just to make sure if if the data Meta is giving us is not the data you're giving us. Um, and I trust you guys. Like, I like you guys if But if we're getting two conflicting data messages, my issue is what they're saying and what we're finding are two different things. And what we're finding from them are two different things. Um, I mean, we've got an engineer saying it could be up to 500,000 gallons of water. Where is that coming from? If he's saying that about Temple, where is it coming from? Is there some Is that why there's secrecy? Because no one wants to tell us. There is no there is there is no secrecy.

Well, I mean if feels like there is then you tell me who this engineer is that's telling you outside of what our contracts have said what we've set up here the last two council meetings in a row who is your engineer. I would love to come show it to you. No, just tell me now. I'm not going to put some guy's name on blast from I'm not going to I'm not going to do that. But I will tell you personally. I have it on audio. I'd love to play the whole tape for you so I don't have to and he's and he's involved with the Meta Project. He knows everything and he basically is calling this group of people who have a contract arrangement with

Why do you think Why do you think I'm so upset by it? Because I'm like, if we're not getting transparency, if there's a transparency issue and we're hearing one thing on tape and we're hearing another thing here, how are we supposed to know the truth if we can't at least audit what's happening? Either someone someone's not telling the truth. So, who is it? And I would love to I'd make appointment anytime to come let you listen to the audio. I'd love to give you all the information we have because I think you would be concerned too and at least want to alleviate the issues and say, "Hey, look, Sarah was wrong right here. Look, we have it. We have all the proof. We audited it. Here's the water district. Everyone testify." It would be great. I would love to be wrong. But based on what we've heard from Rowan, based on the BS we've heard from Rowan, based on the info we've gotten from Rowan on on record and based on Meta's own plans, none of this is right. So, I'm just confused. All the facts don't line up. And when that happens, there's usually an issue. And that's my only that's my only thing. That's my only beef here.

But thank you. Okay. Thank you. Who's I want to clarify that when they hit 4,000 gallons a day, we shut them off. They can't have more. Correct. I mean, if they need more, sorry. That's what we Right. If I mean, if they have if they've projected incorrectly and they want to use more than 4,000 gallons a day that they can't get that from us without you um approving a different agreement with them. They are limited to 4,000 gallons a day in water use. Alan, we're not talking about gates and backyards anymore.

I know we're not. We're talking about water. 4,000 gallons a day. I use 2,000 gallons a day and I'm all by myself. We're going to have 40 employees in this building. They're going to come back and say they need at least six to flush the toilets because it's going to be there's going to be 40 people in that building. You probably use 2,000 a month. Oh, okay. That's true. A few months ago, a lady came up here and talked about how high her water bill was, and we sent someone out. Remember that? Were you here six or seven meetings ago? Sure enough, she had a water leak.

So, yeah. Yeah. 2,000 gallons a month is pretty average. That's for That's not the average home with multiple peran uses,000 a month based on what I know. One one person living in a house using water. That's 4,000 a day. That's 4,000 a day. That's not It's the equivalent of nan.

So, anybody else for the public hearing? Um, so I I have a few questions. One is, uh, may maybe I missed it in the slides because I came in a little late. Um, what is the long-term value of this building other than maybe 40 jobs and some property taxes?

What What do you think it should be? Well, I I would hope that this building serves our city. Like what is the long-term value for temple that this building serves? Like if we built um like uh like a restaurant, right, that serves our people. We can go there. We can get a product back serves our community. What is the long-term value of this building other than 40 jobs and maybe some property taxes?

The long-term value of a restaurant to the city of Temple is that whenever you go eat there, you enjoy a meal and you pay sales tax. The city of Temple gets a piece of that sales tax. that sales tax um in the city of Temple sales tax revenue accounts for about 30% 28 to 29% of the revenue that it takes to operate a city. Okay. Um most people don't realize how much um a lot of people think that the advorum tax the property tax that you pay is what the city operates from. That's not true. sales tax is a higher percentage of the operating budget as far as revenue uh contribution than advalorum tax. Um but at the same time advalorum tax is very important and even at a even at an abated amount the adorum tax that a property like that will push off to the city is astounding. Whenever you think about 270 acres, how many homes you could put on that? How much money it would cost for the city to go out there and to run water lines, wastewater lines, streets, uh public safety, etc. to build a a new neighborhood. People think that a brand new neighborhood is going to support itself in a year or two. Not even close. But uh a a data center like that or any large um any large contributing contributor to the tax base um is is what is is the benefit to you because what that ends up happening what ends up happening is then you as a as a resident can have better amenities at a lower overall tax rate out of your own pocket based upon the

adorum tax you pay at home. So, you're planning on building up Temple with the revenue? Like I I I was just saying like, "Hey, as me as a citizen, how is this benefiting me?" Um like like it doesn't provide anything to me. It does. You just don't see it. I I'm I'm asking. It pays for It pays for public safety officers. Okay. It pays for people to It's just taxes. Patrol the street. Sure.

It's just taxes. It's not a service for the community. It's not like a power plant that generates electricity that we could use that lowers our electricity costs. It's nothing like that. It's a it's a building that consumes resources and it doesn't provide anything to the immediate community other than maybe 40 jobs because some of them might not even live in temple. And but so does the the same thing can be said on a much smaller scale. I had Chick-fil-A for lunch today.

I don't go to Chick-fil-A every day, but I get the benefit of Chick-fil-A every day because today I happen to go and I contributed. I paid some sales tax. But maybe Jessica will go tomorrow and she's going to pay some sales tax. And you know what? The public safety officer that shows up at my house or when my whenever my home is on fire and someone rolls up and puts that fire out, that's the benefit to me. I say the benefit that you're asking about is the same in our our oldest factories in town. Wilson Arts Pier or the um what's other chair all the chair manufact the old any factory they're not being sold here. That stuff's going all over the world. It's I mean yes this desk right here is probably made over there at Wilson Art but

um that's but when they generate revenue so um but when they generate revenue it goes directly to you like if this data center to the city the taxes are the same. Yes, I meant I meant you. Sorry, you the city. Sorry. Um, you know what? They're they're also paying county tax. They're paying school tax, right? So, because of that, our school district will be able to to to uh to educate the children at a at either at a higher level because there's quote unquote more money or at a at the same level with uh with costing you less. Yeah. But but also this building doesn't generate sales. It's not selling a product or service.

Those are wholesale providers. So, the city doesn't get any sales tax off of like say Wilson Art or uh Walmart distribution or HB distribution. Th those are wholesale and sales taxes don't apply to wholesale providers. But but in general, this this building is not going to be doing anything directly to our community other than potentially 4D jobs. and just like any other factory or anything in town that has a service or builds things. So, um and so

for for my next question, um the the slide the the slideshow, um I don't know what data this is based on. Um like have we validated the claims that it's going to be generating this economic benefit? um have we compared it with similar cities with similar um buildings and did it actually improve property taxes in the same amount that they have uh claimed? I think an audit.

So this is their this is what they would be required to commit to be able to get the benefit of the tax abatement. If they don't meet these requirements, the the tax abatement doesn't apply and the agreement is void. And Tracy, I think it might make sense then. How how does then does the city of Temple um uh verify that Rowan will spend um up to their $700 million contractual investment. that is part of the that is part of the co the contract that we they they have to prove and we can audit the invoices and validate the capital investment.

Oh, and and also to remember and we estimate the value of the property or when they're going to make an investment for the $700 million that will not necessarily equate to that on the tax role. And we make assumptions, but they have to spend they basically have to spend $700 million. Yes. And we we had the Does it need to show up as assessed value of $700 million or out of their pocket? It's got to be $700 million

out of their pocket. 700 million $700 million. And again, as we mentioned, it does not necessarily equate to that on the tax role. And with the personal property, usually it's four or five year property and they refresh that. Personal property being the server, the things that are inside the shell that are operating the business.

Yes. They will refresh that every four to five years. You also have the revenue during the construction period, the use tax of of sales tax also on the construction materials. So there's um you get that benefit too. And then there's also um revenue to the city for um the electric usage. Yes. There's franchise fees on the franchise fees. Megawatts of electricity. Yep. So the city gets a piece of all that every every year.

Yep. Um so we are able to audit um to verify that they have spent $700 million. Correct. And our meters, our water meters are able to audit their water usage. Yes. Both water going in the building and the discharge going out of the building. Correct. And and to calibrate the the meters to pardon. We can test the meters calibrate to be sure that they're giving us the right information. So it is being audited. Yes. Not one time but daily. Correct. Not

or or at least monthly, right? Whenever it's time whenever you send a meter reader by. Yeah. The investments validated and audited once and they they have investment reports they have to complete and file. We validate that investment. But the water will have a smart meter on it and you meter. This is sort of maybe replowing some older ground, but if I remember correctly, and I do, I'm just saying that um there was an economic development agreement around the Mariah project around the Bitcoin mining project. And whenever they failed to meet some requirements within that, there was some economic benefit that we had agreed to give them, but when it failed, they did not get those

correct. They did not those enhancements. Correct. Correct. because they did not meet the investment commitment.

Well, this being sun sunshine week, we are absolutely doing everything that and it is verifiable that we're doing everything that is required within the economic development agreements. Yes. And if they don't, then we uh we exact the the contractual measures whenever they both perform and when they don't perform because we follow the contract. Yes. And and with the tax abatement, they have to annually certify that they're in compliance with it too. Anybody else?

My staff is not not What do we call her? Money bags. Moneybags. I I do have a staff that's they they do go through it, comb through it thoroughly.

Um the uh ha have you done a costbenefit analysis of con this building's construction compared to something else? And if so, um, what are the costs in your analysis for this construction, whether it's noise pollution, um, or other environmental factors or like people nearby their housing prices might go down for various reasons because of whatever. Um, what what kind of costbenefit analysis have you done? And what are the costs? Well, you're a little bit late to the game. You're two weeks late on the noise mitigation. We talked about all that two weeks ago.

Okay. Again, contractual requirements. Mhm. Um uh as far as the the impact on someone's home value, no idea. But I can assure you that the costbenefit analysis to the city of Temple school district to Bell County, to all taxing entities is an absolute plus. Okay. Uh, is there a a place for me to view this costbenefit analysis? Yeah, why don't you go to Bellcad and look up these um property IDs, see what they paid in tax last year. Uh, do you have the IDs ready or or I read them off? Oh, yeah. They're available.

All right. Thank you. You bet. I give you two bites at the apple, Margie. So, this is your last one. Gigabytes. That's a good one.

Have you been internet surfing while we've been talking? Everything. You know, you logged on to a data center when you did that.

Right side up. Now, come on. Okay, it says nearly 7,000 of the world's 8,88 data centers are built in the wrong climate. This is what analysis has found. The vast majority are located outside the optimal optimal temperature range for cooling. 600 are in locations considered too hot. We're one of those locations. I can tell you that from looking at all this because of AI and all. While only a minority are in regions that are persistently too hot, but we are too hot. And from looking at this, it says, "The American Society of Heating, Refrigerating, and Air Conditioning Engineers recommend that data centers operate most efficiently when inlet air temperatures fall between 18 Celsius and 27 Celsius. Anything above that,

Margie, we can't help that. They are here. They've bought the acorage and they're going to they're going to do business here. So if you something that's relevant is anywhere from 29 to 34 this week. That's our Celsius this week.

And we're above the 27 of their high recommendation. So that's why I'm wondering of the fact that you're going to be using more electrical energy use rises, cost increase, cooling systems work harder no matter what. And we're just in March and we know we're 100 plus degrees and anywhere from 90 to 100 plus degrees. Eight months out of the year usually be working harder. The gigabytes are harder. I know we had a what they call a brown out or something here just recently. I don't know about your electricity, but mine spurted well enough to turn the TV off for 30 seconds. And that was just two days ago, I believe. And my daughter's home this week because they're of course on spring break also and she's of course experienced it. Why did we have that? Why did we have that?

You'll need to talk to your state rep about that one. We don't do electricity here.

We're looking at the cooling systems. Well, you guys keep this place really cool. I have to come in here and put this on because y'all keep it really cool. And I'm I mean I keep my air conditioner set at 74 75 lots of times. I don't think yours is set at that. I think it's a little cooler. All I know is cost will increase. Condensation reliability everything becomes inhibiting. And when you're going to start putting in data centers like they're talking about and you're with your closed loop system and all, you're still going to go and you're going to have gigabytes going rather than in megabytes and so forth. And when your air conditioners shut off here in Temple, which I pray they do for a couple of days, you might realize what you've done. I'm looking at it from a realistic perspective that we are in a hot zone for this stuff. We're not recommended to have data centers in these areas. Why do they come in? Because they get tax abatements. They get cheaper land. They get all this good stuff that you guys called accolades. You give them 40 jobs, whatever. But you're giving away our electricity and our resources so they can run a data center. So they can run a data center. And yeah, I do surf this stuff because at least it gives you information a whole lot quicker. But that's nice. It tells us we can talk to our city council members and our mayor and maybe have a good discussion and maybe slow this down or stop it entirely because I think y'all are going to be set in a brush fire and you won't be able to put it out one day and you might not be here then. You might be in Hawaii because you've retired on that $700 million that you said

they're gonna put in. They might just cut and run. You know heard of always enjoy you. Who's next? Anybody else? Going once, going twice. All right, this public hearing is closed. I don't even remember where we are. What item are we on now? Six, I think. All right. So, we're ready to vote on item six, right? Okay. So, um I've closed the public hearing. Council, I'll entertain a motion on item six. A motion to approve item six. Second.

We have a motion by mayor pro Tim Walker. We have a second by council member Kirkindall. Council, please cast your vote. Item six passes five votes to zero. Item seven is to consider adopting a resolution authorizing a construction contract with RT Schneider Construction Company LTD of Belton for the construction of Poison Oak Road Realignment Phase 2 in the estimated amount of 6,132,73.90. Hi, my name is Sharon Cesler and Before you got Poison Oak Road realignment phase two. These improvements will realign Poison Oak Road just east of Charter Oak Elementary School all the way to Old Waco Road. It will effectively straighten out the two 90 degree bends and um widen the roadway to four 13 foot wide lanes. uh provide drainage could advance 10- foot sidewalks on the north side and utilities street lighting and landscaping. It was a very competitive bid. Seven bids were opened. The lowest uh provided by RT Schneider at 6.1 million. The high was 9.7 and the OPC was 8.8. So was it was very competitive bid. Um Clark Associates and staff recommend award to RT Construction of Belton. Thank you, council. Any questions on item seven?

A long time coming. Yes. Excited to get it started. Very good. Then um if there are no questions for Miss Shestler, I will s got it. I never can say that right. Um I'll entertain a motion on item seven. Move we approve item seven.

We have a motion by Council Member Kirk Doll. We have a second by council member Grant. Council, please cast your vote. Item seven passes. Four votes yes, zero votes no, and one abstension. Before we move on to item eight, I want to point out that I always appreciate the respect that uh you guys show with staying for the whole council meeting. That's why I move it to the back. Thank you all. Moving on to item eight is consider adopting a res Now you have to stay the whole time, right? Oh, mayor. Gotcha. No, seriously. I I do appreciate it. Item eight is consider adopting a resolution authorizing the purchase of various vehicles from Silsby Fleet Group, Inc. of Silsby in estimated amount of $298,718.25 for bid package A. Gun Chevrolet Limited of Selma in the estimated amount of $52,493.84 for bid package C. Caldwell Country Chevrolet 2 LLC of Caldwell in the estimated amount of $69,8986 for bid package D and Randle Reed Planet Ford 365 of Garland in the estimated amount of $138,770 for bid packages F and G for a total estimated amount of $559,880.15. Miss Matkkey,

good evening. Thank you, mayor. Um, so on the regular agenda tonight, um, we open bids, uh, for vehicles, which we do annually about this time every year. We opened our bids for fiscal year 26 on February 12th. Um, nine vend vendors submitted bids, which was a good turnout. Uh, and with that, we had nine independent bids, so varying models and so forth. We had nine different uh models of uh vehicles that we needed this year. Uh you already approved on your consent agenda item 4B, the purchase of four vehicles that did not have local preference uh implications with them. On uh this regular agenda 8, we've got five independent bids, which I think is a record. We've never had this many that qualify for this. uh and it includes the purchase of 12 vehicles, but um five of these bids have a local preference option associated with them. um your local adopted local preference policy. Um if when we have competitive sealed bids and the expenditure is less than 500,000 and there is a local bidder located within the city limits um that declares a local preference option and they are within 5% of the low low bidder. Staff will recommend the low bidder and council can determine whether the local vendor offers the best combination of price and additional economic development opportunities by awarding to them. Again, there's five bid packages. Uh the first one, bid package A, uh we're recommending award to Silsby Fleet Group, which is for seven uh halfton pickups. Um, Silsby is offering a price for all seven of them of 298,718.

There is a local preference off option within $1,269 uh with Don Wrangler Chevrolet for $299,99.86. Bid package C. Um staff is recommending the low bidder of Gun Chevrolet for one one ton pickup uh 4x2 with an 8 foot bed. Uh Johnson Brothers is within $1,642 of Gun Chevrolet. So, so you do have that option to consider uh Johnson Brothers on bid package C. On bid package D, which is for one one ton uh regular cab chassis with a utility body, uh Caldwell Country Ford Chevrolet is who staff is recommending for 69,898. Local preference option available with Don Wringler at 72,517. That would be an additional investment of $2,619. Bid package F is for two medium-size 4x4 SUVs. Randall Reed's Planet Ford was the low bidder at $78,500. There is a low local preference option with Johnson Brothers for just $90 higher on this particular uh bid package. And the final one, bid package G, is for one full-size 4x two SUV uh for the communications department. The low bidder that we're recommending is Randall Reeds Ford for 60,270. Don Wringler is within 2,124 of that low bidder. Uh so there is an option available on that one also. So you do have handouts available at each of your stations with the options. uh the the motion language options as to if you

want to go with no local preference and that would be with all of them. You would select option one uh and read off that one. Option two is if you are recommending awarding local preference on all the bids. And then option three, if you want to pick and choose which ones, uh you can use uh the option three um handout. With that, I'd be happy to answer any questions anybody might have.

Thank you, Miss Matkkey. Appreciate that. Council, anything for Miss Matkkey? Okay. Then council, I'll entertain a motion on item number eight. And please know that there is the uh local preference option language there at your desk. I'm

I'm very proud to be able to I would like to support our local dealers. And as I said before, I do that in my personal business. Um bought one local here just recently. Um and I know I paid a little bit more, but I'm was glad to support local. Um, and I think this $7,000 or whatever on a over 500,000 is a pretty small price to pay to support our local local dealers. So having said that and recognizing that Donler Chevrolet of Temple and Johnson Brothers Ford Lincoln of Temple are local vendors that offer the city the best combination of price and additional economic development opportunities under the city's local preference policy. I make a motion to adopt a resolution authorizing the purchase of seven half-tonon regular cab pickups from Don Ringer Chevrolet in the estimated amount of $299,986.77. One one ton regular cap pickup from Johnson Brothers Ford Lincoln in the estimated amount of $54,136. One ton regular cap pickup with utility body from Don Wringler Chevrolet in the estimated amount of $72,517.37. Uh two mediumsiz 4x4 SUVs from Johnson Brothers Ford Lincoln in the estimated amount of $78,590. one full-size 4x2 SUV from Don Wrangler Chevrolet in the m estimated amount of $62,394.

I will second that and say that these two local businesses do so much for our community. They are constantly giving back in a really big way. So, I'm I'm happy that we can we can do this.

Agree. Um we have a motion by Council Member Pilington. We have a second by Mayor Pro Tim Walker. Council, please cast your vote. Item five passes um five votes to zero. Moving on to I'm sorry, item eight passes five votes to zero. Moving on to nine is to consider adopting a resolution approving a tax abatement agreement which will abate a percentage of the increase in taxable value of certain real and personal property located on 36.93 acres addressed as 5101 Winland Road and designated as city of Temple tax abatement reinvestment zone number 48 between the city of Temple and East Pin Manufacturing. Miss Thomas, you're moving around on me.

Good evening again, mayor and council. Um staff has received an application from Eastpin Manufacturing to abate a portion of the increase in the taxable value of their planned expansion at their current facility. Uh which consists of approximately 36.93 acres at 5101 Winland Road. Uh the final reading of the ordinance creating the required tax abatement reinvestment zone for the expansion was on today's consent agenda which you have approved. Uh this item is to consider consider authorizing a tax abatement agreement for the expansion project. East east pen plans an expansion to its existing uh distribution center consisting of site improvements, engineering, permitting and the construction of an addition to the existing building. The addition would be over 175,000 square feet sitting on the existing plot of land. The facility will contain distribution equipment, manufacturing equipment, and exo auxiliary support equipment. Site work modifications will consist of parking improvements, water, gas, and communication connections along with extensive electrical upgrades to satisfy electrical demand. This expansion is projected to include an investment of at least $110 million in the creation of 48 new full-time positions consisting of manufacturing and warehouse staff. Um again, the temple's standards for tax abatement um can be met if at least two of the following criteria are met. The project involves a minimum increase in property tax value of 300% uh for construction of a new facility or 50% uh for expansion of an existing facility. The project makes a substantial contribution to redevelopment efforts or strategic economic development programs. The project has high visibility, image

impact, or is of a significantly higher level of development quality. The project is in an area that might not otherwise be developed. The project can serve as a prototype and catalyst for other developments of a higher standard. The project stimulates desired concentrations of employment or commercial activity. The project generates greater employment that would otherwise otherwise be achieved. The proposed tax abatement agreement with East Penn will grant the company a 50% abatement on the increase in real and personal property improvements for five years. To receive the abatement, East Penn must invest at least $110 million towards its expansion project and create and m create and maintain at least 48 new full-time jobs. Uh staff believes the project meets the criteria in the city's standards for tax abatement. The project involves a minimum increase in property value of 50% for the expansion of the existing facility. The project makes a substantial contribution to redevelopment efforts or strategic economic development programs. The project has high visibility image impact or is of significantly higher level of development quality. The project can serve as a prototype and catalyst for other developments of higher standard. The project stimulates desired concentrations of employment or commercial activity. The project will also expand the employment base, attract major investment, and contribute to economic development in the city as required by chapter 312 of the tax code. Any questions?

Thank you, ma'am. Council, anything for uh Miss Thomas? Okay, there being no further questions, council, I'll entertain a motion on item nine. Move we approve item nine.

Second. We have a motion by Council Member Kirkindall. We have a second by Council Member Grant. Council, please cast your vote. Item nine passes five votes to zero. Item 10 is to consider adopting a resolution appointing members to the various boards and commissions. Um the city council conducted interviews about 10 days ago, week or so ago. uh for our March uh board and commission appointments. And uh so I will go through each of those um appointments for the boards. Uh first is the building and standards commission going to reappoint Jack Barton, Brad Phillips, and Sydney Cable Cable to fill expired terms ending March 31, 2028, and appoint Louise Underwood Bots to fill an expired term ending March 31, 2028. on the development and standards advisory board. Reappoint Chuck Lucco to fill an expired term ending March 31, 2029. Appoint Logan McClinton and Chris Garcia to fill expired terms ending March 31, 2029. On the Historic Preservation Board, uh reappoint Alice Bartley and Kelly Garcia to fill expired terms ending March 31, 2029. On the Library Advisory Board, reappoint Susan Long, Gail Jacobs, and James Stafford to fill expired terms ending March 31, 2029. On the Neighborhood Revitalization Advisory Board to reappoint Laura Gangora, Shannon Meyers, and Judy Morales to fill expired terms ending March 31, 2029. on them uh parks and recreation advisory board reappoint Amanda Sudaz, Neva Dean, and Angela Cases to fill expired terms ending March 31, 2029. On the planning and zoning commission to appoint Galen Burke to fill an unexpired term ending September 30, 2027 and on the zoning

board of adjustment, reappoint Tommy Valley, Josh Welsh, Thomas Cloud, Scott Baker, and Matt Naggley to fill expired terms ending March 31, 2028. Council, if there is no discussion around those appointments, I'll entertain a motion on item 10 to approve item 10.

We have a motion by council member Grant. We have a second by Mayor Pro Tim Walker. Council, please cast your vote. Appointing members to the various boards um which is item number 10 passes five votes to zero. It is currently about 7:15. Thank you all for attending and this meeting is adjourned.