[00:00:01]
>> NOW, WE'RE GOING TO GO AHEAD AND GET STARTED WITH OUR WORKSHOP.
COMMISSIONERS, COULD I GET A MOTION TO SKIP THE INVOCATION AND THE PLEDGE?
>> WE HAVE A MOTION. DO WE HAVE A SECOND?
>> MOTION AND A SECOND, ALL IN FAVOR SAY AYE.
>> [INAUDIBLE] THE MOTION CARRIES. ANY ANNOUNCEMENTS?
>> NO CITIZEN'S COMMENTS. WITH THAT WE'LL GO AHEAD AND GET STARTED.
ITEM 1, WORKSHOP TO DISCUSS THE NEED FOR
[1. WORKSHOP: to discuss the need for, and establishment of, a Caldwell County PACE Program. Speaker: Judge Haden; Backup: 1; Cost: None]
AN ESTABLISHMENT OF A CALDWELL COUNTY PACE PROGRAM. GO AHEAD.MY NAME IS CHARLENE HEYDINGER.
I'M THE PRESIDENT OF THE TEXAS PACE AUTHORITY.
WE ARE A 501C3 NON-PROFIT THAT WAS CREATED SOLELY FOR THE PURPOSE OF ADMINISTERING THESE PROGRAMS FOR CITIES AND COUNTIES THAT DECIDED TO CREATE THEM.
WE ARE PAID A USER FEE BY A PROPERTY OWNER THAT CHOOSES TO USE THIS PROGRAM, NO TAXPAYER DOLLARS ARE INVOLVED AND VERY LOW-RISK FOR ANYONE.
WHAT PROBLEM ARE WE TRYING TO SOLVE? EVERY BUSINESS IN NON-PROFIT WOULD LIKE TO REDUCE COSTS.
THERE'S TWO WAYS TO MAKE MONEY.
YOU EITHER SELL MORE STUFF OR YOU REDUCE YOUR COSTS, HOPEFULLY BOTH.
BUT FOR MOST OF OUR BUSINESSES, THEIR UTILITY COSTS ARE HIGHER THAN THEY SHOULD BE BECAUSE THE EQUIPMENT IS OLD AND THEY'VE PROBABLY GOT SOME CHRONIC REPAIR BILLS ON ANYTHING BUILT REALLY BEFORE 1990, EVEN BEFORE 2000.
THE HVAC SYSTEMS ARE GOING, THE LIGHTS ARE BAD, ETC.
ROOFS ARE BAD. WHY DON'T THEY JUST FIX THEM? THEY CAN'T AFFORD IT.
THESE KINDS OF EQUIPMENT ARE VERY EXPENSIVE AND THEY TAKE A REALLY LONG TIME TO BREAK EVEN.
THEY WILL PAY FOR THEMSELVES IN ENERGY SAVINGS OR WATER SAVINGS, BUT IT MIGHT TAKE 10 OR 15 YEARS AND ANY OWNER OF A FACILITY OR THE INVESTORS ARE GOING TO WANT TO MAKE THEIR MONEY BACK A LOT FASTER THAN THAT.
THEY ARE CERTAINLY NOT GOING TO WANT TO LAY SOMEBODY OFF IN ORDER TO REPLACE THE ROOF, SO THEY PATCH IT AND THEY KEEP GOING UNTIL IT'S UNAVOIDABLE.
PART OF THE REASON FOR THAT IS THAT EQUIPMENT LOANS ARE VERY RISKY FOR LENDERS AND LENDERS WHEN THEY'RE LOOKING AT SOMEBODY THAT NEEDS A NEW HVAC SYSTEM OR NEEDS A NEW ROOF, THAT'S TERRIBLE COLLATERAL FOR THEM.
THEY CAN'T COME AND TAKE THE ROOF IF YOU DON'T PAY.
THEY DON'T KNOW HOW LONG THAT BUSINESS IS GOING TO BE IN BUSINESS, THEY DON'T KNOW HOW LONG THAT BUSINESS IS GOING TO OWN THAT BUILDING, SO THEY WANT TO BE PAID BACK IN FIVE YEARS OR LESS.
WHAT THAT MEANS IS YOU HAVE A HUGE CASH-FLOW PROBLEM BECAUSE YOU'VE GOT TO MAKE ALL YOUR PAYMENTS BEFORE YOU EVER GET TO THE ENERGY SAVINGS.
WHAT THIS PROGRAM DOES, AND ONLY A CITY OR COUNTY, THIS IS TRUE ACROSS THE COUNTRY, CAN CREATE THESE PROGRAMS BECAUSE YOU HAVE ASSESSMENT AUTHORITY.
YOU CAN USE YOUR AUTHORITY TO OBLIGATE PROPERTY IN ORDER TO PROMOTE ECONOMIC ACTIVITY AND OTHER IMPORTANT BENEFITS TO THE COMMUNITY.
FOR EXAMPLE, I GREW UP IN WESTERN MICHIGAN.
MY PARENTS GOT A LETTER ONE DAY THAT THERE WERE THE LAST HOUSE IN FIVE HOUSES ON A DIRT ROAD AND THEY WERE GOING TO GET THE ROAD PAVED.
BUT SINCE THOSE FIVE HOUSES GOT MORE BENEFIT THAN THE REST OF THE TAXPAYERS, THEY WERE GOING TO RECEIVE ROAD ASSESSMENTS, SO THEY GOT A TAX BILL WITH THE ROAD ASSESSMENT AND THEY GOT A NEW ROAD AND THEIR PROPERTY WAS WORTH MORE.
THAT'S AN EXAMPLE OF AN INVOLUNTARY ASSESSMENT, AND WE DON'T SEE THOSE IN TEXAS AS FAR AS I'VE BEEN ABLE TO TELL.
THIS IS A VOLUNTARY ASSESSMENT AND SO YOU CAN CREATE THIS MECHANISM WITHOUT HAVING TO SPEND ANY TAXPAYER DOLLARS OR PUT ANY MONEY INTO THESE PROJECTS.
BUT WHAT YOU WOULD CREATE IS THE ABILITY OF A PRIVATE BUSINESS OR NON-PROFIT TO BORROW FROM A PRIVATE LENDER.
YOU'RE REDUCING THE RISK TO THE LENDER BECAUSE INSTEAD OF THE LENDER HAVING A ROOF AS COLLATERAL, WHICH IS MEANINGLESS, THEY NOW HAVE A CALDWELL COUNTY ASSESSMENT ON THAT PROPERTY FOR THE COST OF THE ROOF.
THEY'VE GOT A LEAN ON THE PROPERTY THAT IS A CALDWELL COUNTY LEAN, WHICH IS IMPORTANT.
IF YOU REDUCE THE RISK TO THE LENDERS, THE LENDERS WILL LOAN OVER A LONGER PERIOD OF TIME AND WHAT THAT ALLOWS IS THE IMMEDIATE ACCESS TO THE SAVINGS, SO THE SAVINGS LITERALLY PAY FOR THESE PROJECTS.
TEXAS PACE AUTHORITY WILL NOT APPROVE A PROJECT UNLESS
[00:05:02]
AN INDEPENDENT ENGINEER THAT WAS A GOVERNOR PERRY REQUIREMENT IN THE STATUTE, AN INDEPENDENT ENGINEER MUST VALIDATE THAT THE SAVINGS RESULTING FROM THESE PROJECTS ARE MORE THAN THE COST OF THE PROJECT OVER THE LIFE OF THAT ASSESSMENT.THEY LITERALLY PAY FOR THEMSELVES.
YOU CAN CREATE A MECHANISM THAT OVERCOMES THIS PROBLEM THAT'S CAUSING DEFERRED MAINTENANCE AND ENCOURAGE PEOPLE TO IMPROVE THEIR PROPERTIES THE RIGHT WAY WITHOUT HAVING TO SPEND A DIME OF TAXPAYER DOLLARS.
WHAT IS IT? WHAT DOES PROPERTY ASSESSED CLEAN ENERGY STANDARD FOR? WELL, THAT'S WHAT THE WORD PACE SAYS.
TEXAS WAS ONE OF THE FIRST STATES TO INCLUDE WATER.
BECAUSE IN 2013 WHEN THE LEGISLATURE APPROVED THIS, THERE WAS A DROUGHT, A BAD DROUGHT, AND WE'RE HEADING THAT WAY AGAIN SO THIS CAN BE USED FOR ENERGY SAVINGS OR WATER SAVINGS OR CREATING POWER ON-SITE.
PEOPLE THINK ABOUT SOLAR, ABOUT HOSPITALS AND PLANTS ALSO USE COMBINED HEAT AND POWER.
THERE'S ALL DIFFERENT WAYS NOW TO CREATE POWER ON-SITE.
IF YOU LOSE POWER FROM THE GRID, YOU CAN KEEP OPERATING OR AT LEAST SHUT DOWN SAFELY.
THIS IS 100 PERCENT PRIVATE FINANCING.
YOU'RE CREATING THE MECHANISM AND THAT'S IT.
IT CAN ONLY BE USED ON COMMERCIAL PROPERTY AND THAT INCLUDES NON-PROFITS, INDUSTRIAL PROPERTIES MANUFACTURING, AGRICULTURE, AND CHEMICAL, AND MULTI-FAMILY HOUSING WITH AT LEAST FIVE UNITS.
IF WE CAN HELP THESE LANDLORDS REDUCE THEIR UTILITY BILLS FOR THE TENANTS, THIS IS ALL HUGE.
RIGHT NOW, FOR A LOT OF THESE BUSINESSES OR ANYBODY THAT HAS LEASED PROPERTY, IT'S ALMOST IMPOSSIBLE FOR THE OWNER OF THE PROPERTY TO JUSTIFY PUTTING IN A NEW HVAC SYSTEM IF THE TENANTS ARE GOING TO GET ALL THE SAVINGS.
THIS WAY, WE CAN OVERCOME THOSE BARRIERS AND TRY AND GET THESE PROPERTIES FIXED UP.
I WANTED TO JUST TAKE A MINUTE AND ALSO TO REASSURE YOU THE REASON THE WORKSHOPS ARE SO IMPORTANT IS SO THAT YOU CAN ASK QUESTIONS.
I TELL PEOPLE WHEN I'M MAKING PRESENTATIONS.
I DID SOMETHING VERY SIMILAR LAST WEEK IN CORSICANA.
YOU ALMOST HAVE TO HEAR THIS A COUPLE OF TIMES.
I TELL PEOPLE THREE TIMES, SO IT'S NOT GOING TO HURT MY FEELINGS IF YOU [OVERLAPPING].
>> DO YOU WANT US TO WAIT TILL THE END OR?
>> DO YOU WANT US TO WAIT TILL THE END?
>> THIS IS LIKE A PID, PUBLIC IMPROVEMENT DISTRICT.
>> YOU KNOW WHAT? YES. I TELL PEOPLE THIS IS A ONE-BUILDING PID.
>> THEY'RE ASSESSING THEMSELVES TO PAY DEBT SERVICE.
>> YOU COULD LOOK AT IT THAT WAY.
THE ASSESSMENT WOULD BE A CALDWELL COUNTY ASSESSMENT, HELD BY THE COUNTY AND ENFORCED BY THE COUNTY, JUST LIKE THIS.
>> WE CANNOT DO GOVERNMENT PROPERTY.
>> IF THERE IS A PRIVATE ROAD.
THIS STATUTE IS DESIGNED TO PROMOTE ENERGY EFFICIENCY, WATER EFFICIENCY, OR CREATING POWER ON SITE.
IF THERE WAS A PRIVATE ROAD AND MAYBE THEY WANTED TO DO SOLAR LIGHTS, YOU COULD DO THAT OR A SOLAR GATE.
THIS SOUNDS VERY EXPENSIVE TO ME BUT [OVERLAPPING] CAPTURING THE WATER SO YOU'RE SAVING MORE POWER.
>> IT WOULD BE TO JUST GET IT DRIVABLE?
>> NO, BECAUSE IT DOESN'T SAVE ENERGY OR WATER.
A LOT OF PEOPLE HAVE ASKED, CAN WE USE THIS FOR THE ELECTRIC CHARGERS FOR CARS? THE PROBLEM IS THEY ACTUALLY USE MORE POWER.
THEY DON'T REDUCE POWER USING THE PROPERTY.
THE WAY THE STATUTE IS WRITTEN NOW, WE COULDN'T DO THAT.
THERE IS AND I DON'T THINK IT WOULD HELP WITH ROADS BECAUSE IT HAS TO BE ENERGY SAVINGS OR WATER SAVING.
BUT THE CONTROLLER'S OFFICE, THE STATE CONTROLLER'S OFFICE HAS A VERY SIMILAR PROGRAM, A REVOLVING FUND FOR GOVERNMENT BUILDINGS, AND WE'VE SEEN PEOPLE USE IT FOR COURTHOUSES, JAILS, MAINTENANCE FACILITIES, SCHOOLS.
A LOT OF SCHOOLS HAVE USED IT.
IT'S CALLED IT'S A PLAN WORDS, THE LONE STAR PROGRAM L-O-A-N S-T-A-R, AND THE STATE OF TEXAS HAS LOANED HALF A BILLION DOLLARS TO LOCAL GOVERNMENTS, THEY'VE GOT A ZERO DEFAULT RATE.
THIS PROGRAM TRACKS ALL OF THEIR TECHNICAL REQUIREMENTS WHERE WE USE THAT BECAUSE IT HAS BEEN SO SUCCESSFUL AS OUR MODEL.
[00:10:06]
BUT THAT'S SOMETHING A LOT OF LOCAL GOVERNMENTS WILL SAY, WHY CAN'T WE USE IT? I'LL SAY ACTUALLY, THE CONTROLLER'S PROGRAM, IT'S RUN OUT OF THE STATE ENERGY CONSERVATION OFFICE, HAS MUCH LOWER INTEREST RATES AND THE STATE WILL PROVIDE ENGINEERING.IF YOU WANT SOMEBODY TO COME AND WALK THROUGH A BUILDING AND GIVE YOU SOME IDEAS OF WHAT YOU WOULD SAVE, THE STATE PROVIDES THAT FOR YOU AT NO COST, BUT WITH OUR PROGRAM THAT DIDN'T HAPPEN IN THE PRIVATE SECTOR.
THIS BUILDING ON THE LEFT, THE BARFIELD BUILDING, 1926 OFFICE BUILDING ON ROUTE 66 IN AMARILLO HAS LOOKED LIKE THAT FOR 25 YEARS.
ANYTIME ANYBODY WENT DOWNTOWN AMARILLO, THEY HAD TO LOOK AT THAT.
IT IS NOW A MARRIOTT AUTOGRAPH HOTEL.
IT WOULD NOT HAVE BEEN POSSIBLE WITHOUT THE $7,000,000 THAT THEY WERE ABLE TO FINANCE THROUGH THE CITY OF AMARILLO'S PACE PROGRAM.
THE DEVELOPERS HAD THAT BUILDING FOR LIKE 15 YEARS.
THEY'VE TRIED TO TURN IT INTO CONDOS.
THEY'VE TRIED ALL THINGS, BUT THEY COULD NEVER GET ENOUGH MONEY TO MAKE IT WORK UNTIL THE CITY CREATED THE PACE PROGRAM, AND SO THE CITY HAS GOT THIS BEAUTIFUL UPDATE.
IT'S AFFECTED BLOCKS AROUND IT FOR THE GOOD.
THE REDEVELOPMENT AROUND IT HAS BEEN REMARKABLE.
AGAIN, THE CITY DID NOT HAVE TO PUT A DIAMOND TO IT.
THEY'RE GETTING READY TO DO THEIR SECOND PACE PROJECT AND WE JUST GOT THE APPLICATION.
IT'S A NON-PROFIT THAT BOUGHT IN 1980S GLASS BUILDING AND IT NEEDS EVERYTHING BECAUSE OF ITS AGE.
THIS IS ANOTHER WAY TO SHOW WHAT I WAS TRYING TO DESCRIBE THAT REPAYMENT, THAT FIVE-YEARS OF PAYING BACK THE COST OF THAT IMPROVEMENT MIGHT BE A NEW ROOF.
IT'S PROBABLY HVAC AND LIGHTING, SOMETIMES IN THE ROOF, SOMETIMES A BOILER.
BUT ANYWAY, I CALL THAT THE TOWER OF PAYING BECAUSE YOU'VE GOT THAT CASH FLOW TOWER BEFORE YOU EVER REACH THE SAVINGS AND ALL PACE IS REALLY DOING, ALL YOUR MECHANISM WOULD DO IS KNOCK THAT TOWER OVER.
PRIVATE OWNERS STILL HAS TO PAY IT BACK.
THEY'VE STILL GOT TO CONVINCE A PRIVATE LENDER THAT IT'S A GOOD INVESTMENT.
IF THERE'S A MORTGAGE ON THAT PROPERTY THEY HAVE TO GET THE WRITTEN PERMISSION OF THE MORTGAGE COMPANY BECAUSE THIS NEEDS TO BE IN THE FREE MARKET AND IT NEEDS TO STAND OR FALL IN THE FREE MARKET.
OUR ROLE IS TO ONLY DO WHAT THE GOVERNMENT'S ROLE WOULD BE WHICH IS EDUCATION AND OUTREACH BUT MOST IMPORTANTLY, QUALITY CONTROL.
THAT WE MAKE SURE THESE PROJECTS ARE DONE PROPERLY AND THAT EVERYTHING LINES UP WITH THE STATUTORY REQUIREMENTS AND THE TECHNICAL AND UNDERWRITING REQUIREMENTS.
TRAVIS COUNTY WAS THE FIRST COUNTY TO CREATE THE PROGRAM.
COMMISSIONER GERALD DAUGHERTY MADE ME GO TALK TO EVERY SINGLE MEMBER OF THE COUNTY STAFF, BUDGET, LEGAL, YOU NAME IT, AUDITING.
HE HAD ME MEET WITH EVERYBODY BEFORE HE WOULD PUSH FORWARD AND EVENTUALLY DID.
FIVE YEARS AGO OR ACTUALLY SEVEN YEARS AGO NOW, TRAVIS COUNTY CREATED THE FIRST PROGRAM.
WE NOW SERVE 78 LOCAL GOVERNMENTS.
WE REACH ABOUT 73 PERCENT OF THE TEXAS POPULATION.
YOU'LL SEE IN THE CENTER OF TEXAS WE'VE DONE PRETTY WELL GOING UP AND DOWN I305 BUT THERE'S THIS LITTLE HOLE THAT WE WOULD LOVE TO FILL WITH A BLUE CALLED MOHO COUNTY.
[LAUGHTER] YOU'RE IN GOOD COMPANY.
THIS IS A NICE TIME FOR YOU TO CONSIDER THE PROGRAM BECAUSE WE'RE NOT ASKING YOU TO GO FIRST.
WE'VE REALLY PROVEN THE CONCEPT BECAUSE IN THE BEGINNING PEOPLE SAID THIS IS TOO GOOD TO BE TRUE.
NOBODY WANTED TO GO FIRST ETC, BUT IT'S A REALLY GOOD TIME FOR YOU TO REVIEW IT.
YOU CAN SEE OUR GROWTH, OUR FIRST PROJECTS CLOSED IN 2016.
EARLIER, ACTUALLY WE'RE IN MAY NOW SO IN APRIL WE CROSSED THE $200 MILLION MARK AND YOU CAN SEE ALL THE DIFFERENT KINDS PROPERTY THAT HAVE UTILIZED THIS.
HEALTH CARE IS ABOUT THE ONLY THING WE'RE MISSING AND IT'S FRUSTRATING BECAUSE THIS IS A ONE COST HEALTH CONTROL.
THE HEALTH INDUSTRY CAN'T CONTROL THE UTILITY COST SO HOPEFULLY THEY'LL FIGURE IT OUT SOON.
WE REALLY LOST TIME IN COVID NOT BEING ABLE TO GO OUT AND MEET WITH PEOPLE IN PERSON.
WE DID A LOT OF WEBINARS, THERE'S A LOT OF GREAT INFORMATION ON OUR WEB SITE BUT WE'RE REALLY STARTING OVER IN TEXAS, GOING BACK TO BUSINESS OWNERS AND NON-PROFIT OWNERS.
BUT YOU CAN SEE WE'VE DONE 57 PROJECTS.
THE SMALLEST PROJECT IS 70,000 AND THE LARGEST PROJECT IS 27 MILLION.
WE'VE DONE URBAN AND RURAL PROJECTS.
WE JUST GOT OUR FIRST APPLICATION FROM
[00:15:02]
LAREDO SO I'M EXCITED TO HAVE ANOTHER BORDER PROJECT.BUT OUR GOAL WAS TO SERVE ALL OF TEXAS AND WHILE I CAN TALK ABOUT THAT 73 PERCENT OF THE POPULATION, I THINK WE ONLY HAVE 218 COUNTIES TO GO.
[LAUGHTER] OUR GOAL IS TO REALLY SERVE ALL OF TEXAS AND IF THERE'S A PROJECT HERE ONCE EVERY 10 YEARS IT'S STILL A TOOL FOR YOUR TOOL BELT.
I'M REALLY HAPPY TO BE DOING THIS WORKSHOP TODAY AFTER YOU'VE PROCLAIMED THIS WEEK AS ECONOMIC DEVELOPMENT WEEK BECAUSE THIS IS A TOOL THAT WILL NOT COST YOUR ECONOMIC DEVELOPMENT FOLKS A DIME.
THEY ADD IT TO THEIR TOOL BELT, THEY CAN TALK ABOUT IT, BUT IT IS AN INCENTIVE THAT YOU CAN MAKE AVAILABLE HERE.
IT MAKES YOU A LITTLE MORE COMPETITIVE WHEN SOMEBODY IS DOING A SITE VISIT BUT IT DOESN'T COST YOU ANYTHING AND IT DOESN'T COST THEM ANYTHING.
IT JUST WON'T WORK FOR EVERY PROPERTY BUT WHEN IT WORKS IT'S QUITE WONDERFUL.
>> I CAN'T COMMISSIONERS, EVERY TIME I, THIS IS LIKE MY THIRD TIME THIS PERIOD SO I'M FINALLY STARTING MY LIGHTS COMING ON.
BUT THIS AMERICAN BANK BUILDING RIGHT BACK HERE BEHIND THIS IS PRIME CANDIDATE FOR THIS.
THAT THING HAS BEEN SITTING THERE VACANT FOR HOW MANY YEARS JOE? THE OLD JUDICIAL BUILDING?
>> YEAH, AND IT'S NOT BEEN OCCUPIED SINCE THEY'VE JUST THE CENTER OPEN.
HOWEVER MANY YEARS THAT IS AND SO THAT WOULD BE A PRIME [NOISE] CANDIDATE FOR THIS PROGRAM.
>> THOSE PROJECTS ARE SOME OF MY FAVORITES BECAUSE WE DIDN'T APPRECIATE WHEN WE STARTED, WHAT WE CAN DO IN TERMS OF THE LOCAL ECONOMY BECAUSE, LET ME GO BACK TO THIS SLIDE, YOU'LL SEE JOBS CREATED.
THAT'S A DEPARTMENT OF CLEAN ENERGY JOBS.
THAT'S THE PEOPLE MAKING THE EQUIPMENT, PEOPLE INSTALLING THE EQUIPMENT.
BUT PACE CAN ALSO RESULT IN PERMANENT JOBS WHEN YOU BRING A BUILDING LIKE THAT BACK TO LIFE, IT'S A PLACE OF EMPLOYMENT AND IT'S GOING TO GO BACK ON THE TAX ROLLS.
THERE ARE BENEFITS THAT I DIDN'T UNDERSTAND WHEN WE FIRST GOT STARTED.
NOW, CAN WE MAKE THAT OWNER USE THE PROGRAM? NO, BUT NOW THEY'RE GOING TO RUN OUT AND USE THE PROGRAM BECAUSE YOU CREATE IT? NO, THEY'RE GOING TO USE IT WHEN THEY NEED TO DO SOMETHING AND THEY CAN'T FIND THE FINANCING ANOTHER WAY OR IT DOESN'T MAKE ANY SENSE.
NOW THERE'S A TOOL THAT MAKES SENSE AND FOR A LOT OF THESE EMPTY BUILDINGS IN THESE DOWNTOWNS AND IT'S EVERYWHERE.
I'M GOING TO SHOW YOU AN EXAMPLE IN WACO, WAS THE FIRST ONE THAT WAS LIKE, OKAY, THIS WORKS IN A DOWNTOWN.
THESE BUILDINGS ARE EMPTY BECAUSE THE PEOPLE COME UP TO THEM AND THEY'RE LIKE, OH, I LOVE THIS BUILDING.
THIS IS SUCH A BEAUTIFUL BUILDING.
WHEN YOU GOT TO DO THE RE-WIRING AND THE SPRINKLERS WHICH PROBABLY DON'T QUALIFY FOR PACE AND THE NEW ROOF AND THE LIGHTS AND THE NEW HVAC SYSTEM AND ON AND ON.
THEY WALK AWAY FROM IT BECAUSE IT'S OVERWHELMING AND THEY CANNOT FIGURE OUT HOW THEY WOULD MAKE MONEY.
BUT WITH PACE FILLING A HOLE IN THEIR CAPITALISTIC, IT'S NOT GOING TO REPLACE THE MORTGAGE, IT'S NOT GOING TO REPLACE THE EQUITY BUT WHEN IT REPLACES THE OKAY, I'M $800,000 SHORT, I CAN'T DO IT.
YOU KNOW THAT 800,000 IN ALL THE REPAIR BILLS THAT THEY'RE TRYING TO FIGURE OUT ARE ALL THE REPLACEMENTS IN THE UPDATING THAT WOULD EASILY QUALIFY FOR PACE.
THEN IT'S STRETCHED OUT OVER A LONG TIME SO THE PAYMENTS ARE SMALLER AND THEN WE JUST SAY YOU NEED TO HAVE A GOOD BOOKKEEPER BECAUSE YOU CAN'T GO SPEND THAT MONEY.
YOU GOT TO TAKE, I WOULD HAVE SENT IT TO THE WATER UTILITY AND THE ELECTRIC COMPANY.
I'M GOING TO SET IT ASIDE TO MAKE MY PAYMENTS.
YOU NEED TO HAVE A FACILITIES PERSON THAT'S SMART ENOUGH TO MAINTAIN THE EQUIPMENT OR TO SAY, I CAN'T MAINTAIN THIS EQUIPMENT.
I NEED SOMEBODY IN HERE EVERY YEAR MAKING SURE IT'S RUNNING PROPERLY OR THEY WON'T GET THE SAVINGS.
YOU GOT TO PAY ATTENTION AND WE'RE NOT A NANNY STATE.
SOME STATES REQUIRE ALL OF THAT, WE DON'T, BUT IT SHOULD BE DOING IT.
>> IS THERE A LIMIT ON THE TAX, LIKE IS SOMEONE LIMITED TO SAY $0.10 ON THE 100 OR $0.5?
>> IF YOU'RE TALKING ABOUT HOW THE CAD WOULD VALUE THE PROPERTY OR VALUE THE IMPROVEMENT?
>> WELL, THEY VOLUNTARILY ADD TO THEIR PROPERTY TAX, RIGHT?
>> NO, THAT'S A GREAT QUESTION.
THE QUESTION IS HOW DOES THIS AFFECT THE TAX BILL? THIS IS NOT A TAX.
YOU ARE GIVING THE PROPERTY OWNER THE ABILITY TO USE THIS LONG-TERM FINANCING THROUGH ACCOUNTING PROGRAM AND THAT'S AN ECONOMIC BENEFIT.
IN EXCHANGE FOR THAT, A CALDWELL COUNTY ASSESSMENT IS PLACED ON THE PROPERTY AND THE PROPERTY RECORDS SO EVERYBODY CAN SEE IT FOR THE COST AND THAT STAYS THERE.
TECHNICALLY IT'S DUE IN ONLY CALDWELL COUNTY BUT HERE'S THE DIFFERENCE, IT'S NOT A TAX THOUGH.
[00:20:01]
UNLIKE APPEARED WHICH IS, OKAY, WE'RE GOING TO HAVE THIS ECONOMIC IMPROVEMENT AND EVERYBODY IS GOING TO PAY A PERCENTAGE OF THEIR PROPERTY TAX.TEN CENTS IS GOING TO GO TO THE PEED.
EVERY ONE OF THESE PROJECTS HAS A DIFFERENT COST AND IT'S UNRELATED TO THE VALUE OF THE PROPERTY, EXCEPT YOU CAN'T USE PAYS FOR MORE THAN 25 PERCENT OF YOUR ASS COMPLETE WHAT THE PRIORITY.
>> WE COLLECT THAT ASSESSMENT ON THE TAX BILL OR THAT FRENCH DISTRICT.
>> ALMOST EVERY STATE THESE GO ON THE TAX BILL.
OUR TAX ASSESSOR COLLECTOR ASSOCIATION SUPPORTED THE LEGISLATION AND THEY WERE AT THE TABLE WHEN WE WERE DESIGNING WITHOUT A STATE AGENCY, HOW ARE WE GOING TO DO THIS UNIFORMLY ACROSS THE STATE.
GOT A SLIDE ON THAT. WHAT THEY DID WAS THE TAX ASSESSOR COLLECTORS SAT DOWN AND WENT, THESE ARE GOING ON THE TAX BILL AND SEE ALL THE COUNTER OF THE BLOOD FRAME AND THEY SAID WE DON'T HAVE THE MONEY TO DO THAT.
WE DON'T HAVE A STAFF TO MANAGE THIS, TO COLLECT THIS MONEY AND SEND IT OFF TO THE LENDER, BUT WORSE THAN THAT, ALL OF THE TAX ASSESSOR SOFTWARE IS A PERCENTAGE OF VALUE AND THIS IS A FIXED COST.
IT WOULD HAVE BLOWN UP THEIR SOFTWARE AND THEY DON'T HAVE THE MONEY TO GO FIGURE THAT OUT.
NOBODY GETS IT RIGHT. I MEAN, YOU COULD JUST IMAGINE.
WE HAD ALL THESE VOLUNTEERS WORKING ON HOW TO DO THIS BECAUSE UP UNTIL TEXAS, THESE WERE DONE WITH BONDS.
THIS WAS 2013, IT WAS THE YEAR THAT AGRICULTURAL COMMISSIONER SUSAN COMBS CAME OUT WITH THAT ANTI-LOCAL DEBT BOND REPORT THAT FREAKED EVERYBODY OUT AND ALL OF A SUDDEN NOBODY WANTED TO DO BONDS.
OUR BANKERS IN TEXAS WERE GOING, THERE'S SO MUCH MONEY, WE DON'T WANT THE GOVERNMENT FUNDING THIS.
THIS ISN'T THE ROLE OF GOVERNMENT TO BE FUNDING THESE.
ONCE WE MOVED TO USING PRIVATE LENDERS, I MEAN, YOU COULD USE BONDS IF YOU WANT TO BUT NOBODY WANTS TO.
ONCE WE SAID, THE OWNER CAN NEGOTIATE WITH A PRIVATE LENDER, THEN WE WENT BACK TO THE GROUP AND SAID, THIS IS THE WORLD'S SHORTEST PROGRAM.
WE GOT TO FIGURE OUT SOMETHING BESIDES PUTTING THESE ON THE TAX BILL BECAUSE IT IS TOO BIG OF A BURDEN.
IT'S JUST TOO BIG OF A BURDEN FOR LOCAL GOVERNMENT.
ONE OF THE BANKS AT THE TABLE WENT, CAN WE DO IT? BANKS SERVICE LOANS ALL THE TIME.
WE CAN HAVE INSTALLMENTS, WELL, WE'LL DO THAT.
IN TEXAS WE SAID THE LOCAL GOVERNMENT WILL HOLD THE ASSESSMENT.
THE LOCAL GOVERNMENT WILL ENFORCE THE ASSESSMENT IF THERE'S A DEFAULT PAYMENT.
BUT THE LOCAL GOVERNMENT IS DELEGATING THE JOB OF COLLECTING THE INSTALLMENTS BACK TO THE LENDER.
WHEN WE DID THAT, THEN ALL OF A SUDDEN, IF A BANK WANTED TO GET PAID MONTHLY INSTEAD OF ANNUALLY THEY COULD, THEY DIDN'T HAVE TO WAIT FOR THE WHOLE TAX PROCESS TO GET PAID.
IT JUST MADE IT EASIER IN THE PRIVATE SECTOR FOR PEOPLE TO HAVE FLEXIBILITY TO FIGURE WHAT THEY WANT.
>> BY THE TIME I GET CLOSE TO THINKING [LAUGHTER] SAME.
INSTEAD OF A TAX I PAID WHERE THE TAX ASSESSOR.
>> IT DOESN'T GO ON THE TAX RECORD.
>> THE BANK'S GATHERING THAT ASSESSMENT IN ALONG WITH THE REST OF THE PAYMENT FOR THE NOTE.
>> WHO DOES THE BANK SEND THE MONEY TO? DO THEY PAY OFF THAT NOTE? I MEAN, DO THEY PAY THAT SERVICE?
>> THEORETICALLY THERE ARE TWO LENDERS.
>> MORTGAGE LENDER AND THE PACE LENDER.
THE OWNER GETS A NOTICE FROM US EVERY FALL THAT SAYS, DON'T FORGET THIS IS A GOVERNMENTAL ASSESSMENT AND THIS IS WHAT IT'S GOING TO BE NEXT YEAR.
WE'RE JUST REMINDING YOU THAT THIS ISN'T JUST ANY OTHER LOAN.
THIS IS A CALDWELL COUNTY ASSESSMENT.
THEN WE SEND THAT OUT JUST TO REMIND THEM THEIR PAYMENTS ARE MADE DIRECTLY TO THE LENDER.
YOU DON'T HAVE TO BE INVOLVED IN IT.
>> WHAT'S THE LENDER DO WITH IT?
>> PACE LENDER COLLECTS THE MONEY.
THEY'VE LOANED THE MONEY SO THEY CAN DO WHATEVER THEY WANT WITH IT.
THIS IS THE WORST-CASE SCENARIO AND I ALWAYS PLAY IT BACK IN MY HEAD AND HOW LONG IT'S GOING TO BE BEFORE I GET THAT QUESTION, BECAUSE YOU NEED TO ASK THAT QUESTION.
LIKE PID, IF SOMEBODY DEFAULTS THE ONLY THING THAT CAN BE COLLECTED IS THE PAST DUE PAYMENT.
YOU DON'T COLLECT YOUR TAXES IN ADVANCE, YOU DON'T COLLECT YOUR PID PAYMENTS IN ADVANCE.
IF SOMEBODY MISSES A PAYMENT, THE ONLY THING THAT YOU'RE ASKED TO DO IS TO COLLECT THE MISSED PAYMENT.
[00:25:07]
THE STATUTE MAKES CLEAR THAT YOU ARE ENTITLED TO ALL YOUR COSTS AND YOU ARE ENTITLED TO ATTORNEY'S FEES, PENALTIES, AND INTEREST.THE ASSUMPTION EVERYWHERE IS THAT WE'LL CONFIRM THAT THERE'S A PROBLEM.
THE PACE LENDER IS REQUIRED TO SEND DAY DEFAULT NOTICES AND NOTIFY THE MORTGAGE HOLDER.
THE PACE LENDERS WILL DO EVERYTHING THEY CAN TO NOT LET IT GET TO THIS POINT.
IF IT DOES GET TO THAT POINT, THE MORTGAGE HOLDER HAS BEEN NOTIFIED AND THEY'RE MOST LIKELY GOING TO MAKE THE PAYMENT AND THEY'RE GOING TO FORFEITURE UNDER THEIR OWN MORTGAGE AGREEMENT.
THIS HAS BEEN A VERY SUCCESSFUL PROGRAM AND I REALLY BIT MY NAILS THROUGH COVID, BUT WE HAVE NOT HAD ANYBODY DEFAULT.
WE'VE HAD NO LOCAL GOVERNMENT EXPERIENCE WITH THIS.
>> NO, EVERYTHING MAKES VERY CLEAR.
YOU DON'T OWE ANYBODY ANYTHING, YOU'RE CREATING A MECHANISM THAT THEY ARE GOING TO USE AT THEIR OWN RISK.
WITH OUR UNDERWRITING AND OUR TECHNICAL, I CAN TELL YOU THAT THESE PROJECTS ARE VETTED TO THE POINT WHERE WE'RE CRITICIZED FOR BEING TOO STRICT.
IF A PROPERTY FAILS IT'S NOT GOING TO BE OVER THIS BUT THEY CAN STILL FAIL. [OVERLAPPING]
>> WE REALLY HAD NO ROLE IN IT.
>> OTHER THAN HAVING TO ENACT THE PROGRAM IN ORDER FOR THEM TO UTILIZE THE MECHANISM.
>> OPERATIONALLY, WE HAVE DONE EVERYTHING WE CAN TO MINIMIZE.
BECAUSE WE KNEW WITHOUT AN INCOME TAX AND WITH A BI-ANNUAL CONSTITUTIONAL BALANCED BUDGET REQUIREMENT, YOU DON'T HAVE THE RESOURCES YOU NEED.
ASKING YOU TO CREATE ANOTHER BUREAUCRACY MADE NO SENSE.
I WILL TELL YOU IF ONE OF THESE FAILS, YOU COULD BE ASKED TO ENFORCE THE BEST PAYMENT.
NOW THESE ARE NON-RECOURSE LOANS, THEY'RE ON THE LAND AND THEY CANNOT ACCELERATE.
THE ONLY THING THAT YOU WOULD COLLECT AHEAD OF THE MORTGAGE IS THE MISSED PAYMENT.
IF IT ENDED UP ON THE COURTHOUSE STEPS AND IT'S SOLD, THE NEW OWNER WOULD BUY THE PROPERTY WITH THE OBLIGATION TO MAKE THE REMAINING PAYMENTS.
>> THE ASSESSMENT TRAVELS WITH THE PROPERTY?
>> ASSESSMENT STAYS WITH THE LAND.
>> THAT'S EXACTLY WHAT IT IS. [OVERLAPPING]
>> I HAVE A QUESTION AND I THINK YOU'VE ANSWERED THIS FOR ME ONCE BEFORE BUT IT'S NOT STICKING.
>> IF YOU DECIDE TO MOVE FORWARD AND WE GET TO THE PUBLIC HEARING OR YOU CONSIDER THE RESOLUTION OF INTENT.
I WILL BE VERY SURPRISED IF WE DON'T ASK THE SAME QUESTIONS AGAIN BECAUSE THAT'S THE HEARING AND THAT'S FINE.
>> IS THE LENDER THE SECOND LIEN HOLDER?
THE BANKS HAVE A HARD TIME GETTING THEIR ARMS AROUND THIS, BUT THEY DON'T QUESTION PIDS.
THEY REALLY NEED TO UNDERSTAND THAT THIS IS A GOVERNMENTAL ASSESSMENT, IT'S NOT ANOTHER TRADITIONAL LOAN.
HERE'S WHAT WE TRY AND TELL BANKS.
THEY WILL NOT DO THIS UNTIL THEIR CREDIT COMMITTEE UNDERSTANDS THIS.
NUMBER 1, BECAUSE THESE HAVE TO BE CASH-FLOW POSITIVE, THE OWNER'S GOING TO BE IN A BETTER POSITION TO PAY THEIR MORTGAGE.
NUMBER 2, WAY BETTER THAN IF THEY HAD TO TAKE OUT A SECOND MORTGAGE BECAUSE THE AIR CONDITIONING FAILED OR SOMETHING HORRIBLE LIKE THAT.
NUMBER 2, THE PROPERTY VALUES ARE HIGHER.
NUMBER 3, THE ONLY THING THAT CAN BE COLLECTED AHEAD OF THEM IS THE MISSED PAYMENT.
THE PACE ASSESSMENT CAN ONLY BE 25 PERCENT OF THE VALUE OF THE PROPERTY ONCE IT'S IMPROVED.
IF YOU BORROW THAT COST OVER 20 YEARS, YOU CAN BORROW.
THE FINANCING ASSESSMENT CANNOT BE LONGER THAN THE PROJECTED USEFUL LIFE OF THE IMPROVEMENTS BECAUSE WE NEED THOSE IMPROVEMENTS REPAYING.
YOU TAKE THAT VALUE OVER 20 YEARS OF PAYMENTS.
NOW YOU'VE GOT A PAYMENT THAT'S PRETTY SMALL COMPARED TO THE VALUE OF THE PROPERTY, AND THAT IS THE ONLY THING THAT CAN GO AHEAD OF THAT MORTGAGE.
THE OTHER THING THAT THEY ARE STARTING TO UNDERSTAND IS THEY STILL HAVE CONTROL.
IF THERE WAS ANOTHER LENDER AHEAD OF THEM, THAT LENDER COULD SELL THE PROPERTY AND DO WHATEVER AND THEY WOULD HAVE NO CONTROL HERE, THEY'RE NOTIFIED AND THEY CAN MAKE THE PAYMENT, KEEP YOU OUT OF IT, AND STAY IN CONTROL OF THEIR PROPERTIES.
>> USING YOUR EXAMPLE OF 800,000, SAY, THE NOTE WAS FOR 800,000.
IN ESSENCE, A NORMAL LOAN WOULD BE FIVE YEARS AND I'M NOT PAYING ANY INTEREST ON THIS.
[00:30:04]
IF WE'RE JUST KEEPING IT SIMPLE FOR MY SIMPLE MIND, YOUR PAYMENT WOULD BE ABOUT 13,000 A YEAR ON A FIVE-YEAR NOTE, IT WILL BE 3,000 A YEAR ON A 20-YEAR NOTE.THAT'S THE ADVANTAGE TO THE PEOPLE THAT ARE DOING THIS AS THEIR CASH FLOW.
>> THEY CAN PUSH THAT LOAN PERIOD OUT.
>> THEY CAN PUSH THE FUTURE VALUE OF THAT LOAN OUT.
>> [OVERLAPPING] THEY CAN PUSH THE LOAN PERIOD OUT BUT IT CANNOT EXCEED THE LIFE OF WHAT [OVERLAPPING] I JUST WANT TO MAKE SURE I'M WRAPPING MY HEAD AROUND THIS.
IT'S SIMILAR TO WHAT WE DID WITH THE JOHNSON CONTROLS ISSUE?
>> EXCEPT WITH THE CO INSTEAD OF [OVERLAPPING]
>> IT HAD TO BE BACKED BY THE GUARANTEED COST OF SAVINGS.
>> PUSHING THE LOAN LIFE OUT IS ONE ADVANTAGE, ARE THERE OTHER ADVANTAGES? YOU PROBABLY ANSWERED THIS, IT DIDN'T SINK IN.
YOU CAN PUSH THE LOAN OUT, IT'S NOT AS STRINGENT LOAN CRITERIA.
IT'S NOT EVALUATED AS A LOAN. [OVERLAPPING]
>> IT'S TOUGHER. WE WILL NOT APPROVE YOU.
>> INTEREST RATES, ALL THAT IS THE SAME?
>> I DON'T KNOW WHAT TO TELL YOU ABOUT INTEREST RATES TODAY.
[LAUGHTER] BUT THESE PROJECTS HAVE BEEN IN THE FILES.
>> THE MAIN BENEFIT IS PUSHING THE LOAN OUT?
>> IT'S FIXED RATE, LONG-TERM FINANCING.
YOU'RE GOING TO SEE A LOT OF PEOPLE TRYING TO GET THESE RATES FIXED NOW BECAUSE THE ANTICIPATION IS THAT THINGS ARE GOING TO GO UP.
WHEN I SAY THESE HAVE TO BE CASH FLOW POSITIVE, THAT MEANS YES, THAT ENERGY SAVINGS, WATER SAVINGS, WE DON'T DO A LOT, WE'RE PRETTY TOUGH ON REPAIRS.
IF YOU KNEW YOU HAD TO RENT A CHERRY PICKER EVERY SIX MONTHS TO REPLACE THE LIGHTS, WE WOULD COUNT THAT AS SAVINGS.
BUT SOMEBODY WHO COMES IN AND SAYS, WELL, I'M GOING TO BE ABLE TO REASSIGN THIS WORKER, NOW THIS SOME OTHER PROJECT, WE WON'T DO THAT.
IF SOMEBODY IS PUTTING IN SOLAR, THEY'RE GOING TO GET A TAX BREAK.
WE COUNT THAT, BUT WE ARE THE ONLY STATE THAT INCLUDES THE INTEREST PAYMENTS IN OUR SAVINGS, THE SIR SAVINGS.
BUT THE SAVINGS HAVE TO BE MORE THAN THE COST.
THE COST FACTOR, WE'RE INCLUDING THE INTEREST PAYMENTS, WHICH NOBODY ELSE DOES.
WE'VE TAKEN SOME HEAT ON THAT TOO.
BUT IF I'M GOING TO TELL YOU THESE ARE GOING TO BE CASH FLOW POSITIVE, I CAN'T SAY THAT IF WE'RE NOT LOOKING AT THE INTEREST PAYMENTS.
BECAUSE PEOPLE DON'T LOOK AT THE INTEREST PAYMENTS WITH MORTGAGES AND OTHER THINGS, BUT WE DO HERE.
>> LET'S JUST SAY I'M AN INVESTOR AND I WANT TO BUY THIS BUILDING OVER HERE, IT'S BEEN SITTING VACANT FOR 15 YEARS.
>> I JUST WANT TO LOAN IT TO YOU. [LAUGHTER]
>> WHEN I COME TO YOU GUYS AND SAY, I FIGURED IF I GO IN HERE AND I GET THIS THING AND I RE-INSULATE IT, PUT ALL NEW LED LIGHTS IN, NEW WATER SYSTEM IN.
>> THE INSTALLATION, ALL THAT.
I'M GOING TO LOWER MY UTILITY BILLS 40 PERCENT.
THIS IS GOING TO COST WHATEVER IT IS, 20 PERCENT FOR ME TO INVEST IN THIS.
THAT DELTA IS WHAT YOU GUYS WILL BE LOOKING AT?
>> YES. GOVERNOR PERRY, BECAUSE SOME OF THE ESKOS DID SOME WORK ON STATE BUILDINGS AND THE SAVINGS WEREN'T REALIZED.
HE MADE IT VERY CLEAR HE WASN'T GOING TO SIGN THIS UNLESS WE HAD SOME PRETTY SERIOUS CHECKS IN THERE.
ONE OF THEM IS, AN INDEPENDENT TEXAS LICENSED ENGINEER HAS TO VALIDATE WHAT YOUR CONTRACTOR IS TELLING YOU BEFORE HE WILL APPROVE IT.
>> WHICH IS TO USE COMMISSIONER WESTMORE'S EXAMPLE. EXACTLY WHAT WE DID.
>> EXACTLY WHAT WE DID WITH THE JOHNSON CONTROLS THING.
THEY WENT IN, MADE A VERY CONSERVATIVE ASSESSMENT OF WHAT OUR ENERGY SAVINGS WOULD BE TO SPEND THE MILLION THREE OR WHENEVER IT WAS THAT WE SPENT TO REDO ALL OF OUR BUILDINGS AND SELL IT.
IT WOUND UP ACTUALLY SAVING US $4,500 OVER 15 YEARS.
A PAID COURSE PAYS THE CEO BACK.
I GUESS THAT'S EXACTLY THE SITUATION.
>> FOR THE COUNTY IT ALSO IF SOMEBODY'S FLUSHING 1.3 GALLONS INSTEAD OF A HALF A GALLON OR INSTEAD OF FIVE GALLONS, THAT'S GOING TO REDUCE THEIR WATER BILL BY USUALLY HALF.
>> BUT IT ALSO MEANS YOU'VE GOT LESS WATER TO TREAT.
[00:35:02]
>> OR THE WATER THAT YOU'RE TREATING CAN GO FARTHER FOR THE NEW DEVELOPMENT.
IF WE STOP THE WASTE AND MAKE THE BUSINESSES STRONGER THE COUNTY WINS IN MANY WAYS.
IT'S NOT JUST MAKING THESE BUSINESSES STRONGER AND HELPING THEM TO FIX UP THESE PROPERTIES, BUT IT'S ALSO PRESERVING RESOURCES FOR THE GROWTH THAT YOU'RE EXPERIENCING.
IT'S GOING TO CLEAN THE AIR BECAUSE THE POWER PLANTS ARE BURNING, CREATING LESS CO_2.
THERE'S A LOT OF BENEFIT HERE.
IF ONE BUILDING GETS FIXED UP, IT MATTERS AND SO THOSE ARE THE BENEFITS.
THEY'RE ALL INDIRECT, BUT THEY ARE CLEAR BENEFITS.
THE WAY WE DESIGNED THIS IN TEXAS IS VERY DIFFERENT THAN SOME OF THE EARLIER STATES.
THAT BLACK LINE IN-BETWEEN THERE, THAT'S A CUT-OFF. THAT'S A FIREWALL.
WE DON'T DO ANYTHING THAT THE PRIVATE SECTOR CAN DO.
IF YOU CREATE THE PROGRAM AND DELEGATE TO US THE JOB OF ADMINISTERING IT, THEN WE ARE LIKE AN EXTRA ARM TO THE COUNTY.
WE DO THIS AS A PUBLIC SERVICE.
THE ONLY REASON THIS WAS CREATED WAS BECAUSE IT BECAME VERY CLEAR THAT LOCAL GOVERNMENTS DIDN'T HAVE THE RESOURCES TO DO THIS AND THE COUNSELS OF GOVERNMENT DIDN'T WANT TO DO IT UNLESS THEY WERE PAID UPFRONT AND SO THEY PROMOTE IT.
THAT'S HOW YOU LEARN ABOUT THE PROGRAM AT CAPCOG MEETING.
BUT THEY'RE NOT GOING TO, THEY HAVEN'T HAD THE RESOURCES TO RUN IT.
IF THAT CHANGES NOW THAT WE'VE PROVEN THIS UP, WE'D LOVE TO WORK WITH THEM, BUT FOR NOW WITH THE EXCEPTION OF THE ALAMO AREA COUNCIL OF GOVERNMENTS IN THE LOWER RIO GRANDE DEVELOPMENT COUNCIL OF GOVERNMENTS, WHEN WE SERVE THEM WE SERVE THE LOCAL GOVERNMENTS DIRECTLY OTHERWISE.
THAT'S THE LITTLE EMPIRE, THAT'S US FOR QUALITY CONTROL, MAKING SURE EVERYBODY'S FOLLOWING THE RULES.
BUT IF YOU LOOK AT THAT, YOU'LL SEE IT'S THE PROPERTY OWNER THAT HAS THE POWER.
WE WANTED OUR GOVERNMENT LIMITED, BUT WE WANTED THE PROPERTY OWNER TO DO BUSINESS WITH WHO THEY WANT TO DO BUSINESS WITH AND THE WAY THEY'RE USED TO DOING BUSINESS AND THEY CAN FIND THE HIGHEST AND BEST USE OF THIS PROGRAM FOR THEIR PROPERTY.
IT'S NOT GOING TO BE THE SAME FOR EVERYBODY.
THE OTHER ADVANTAGE TO THIS IS THAT PROPERTY OWNERS AND THEY DON'T UNDERSTAND IT YET, THEY'VE ALWAYS BEEN ABLE TO DO ONE THING AS THEY CAN AFFORD IT.
THEY HAVE THIS LINEUP OF THINGS THAT THEY WANT TO DO AND THEY'LL DO THE CHEAP STUFF FIRST.
THE IDEA BEHIND PACE IS FOR THE FIRST TIME THEY CAN DO WHAT JOHNSON CONTROLS AND SOME OF THE STATE BOND PROGRAMS ALLOW YOU TO DO.
JUST LOOK AT THE BUILDING HOLISTICALLY.
IF YOU NEED A NEW HVAC SYSTEM, BUT YOU'VE GOT A ROOF THAT IS UNNECESSARILY ABSORBING HEAT AND YOU DON'T HAVE INSULATION AND YOU'RE AIR CONDITIONING PARKING LOTS AND YOU'VE GOT OLD LIGHT BULBS THAT ARE NOT ONLY USING TOO MUCH ENERGY, BUT THEY'RE HOT, THEY'RE CREATING HEAT.
WHAT WE TELL PEOPLE IS DO THE ENVELOPE OF THE BUILDING.
DO THE LIGHTS AND THE INSULATION AND COCK YOUR WINDOWS IF YOU CAN'T AFFORD TO REPLACE THEM.
BECAUSE WHEN YOU REPLACE YOUR ROOF OR IF YOU'VE GOT A ROOF THAT'S IN REALLY GOOD SHAPE, PAINT IT WITH ONE OF THOSE MEMBRANES THAT REFLECTS THE HEAT.
IT'S ACTUALLY NOT VERY EXPENSIVE.
THEN HAVE YOUR HVAC GUY COME IN AND SAY, I'M I DOING A ONE-FOR-ONE REPLACEMENT? BECAUSE THE CHANCES ARE IF YOU'VE TAKEN CARE OF YOUR ENVELOPE, YOU CAN BUY LESS HVAC BECAUSE IT'S NOT GOING TO HAVE TO WORK AS HARD.
THERE ARE ADVANTAGES TO LOOKING AT YOUR BUILDING HOLISTICALLY FOR THE FIRST TIME.
WE DIDN'T REALLY TALK ABOUT THAT EARLIER, BUT THE PEOPLE WHO UNDERSTAND THAT, THAT'S A PRETTY BIG DEAL.
>> THE IDEA IS LIKE A SITUATION WHERE THE ENGINEER COMES IN AND EVALUATES THAT.
WHAT'S YOUR HVAC AND YOUR WALLS, YOUR ROOF, ALL THAT.
>> NOW THERE'S A WAY TO PAY FOR IT.
>> THERE'S WITHOUT THE GUARANTEED SAVINGS, THERE'S NO PADDING IN THERE TO MAKE SURE THAT THEY CAN MEET IT.
>> WITH THAT BEING SAID, AND I WAS SITTING HERE THINKING ABOUT THE ROOF AND THEN THE INTERIOR AND YOU JUST PUT THAT IN PLACE WITH THE SHELL.
YOU TAKE CARE OF THAT THE ROOFING WOULD BE ONE OF THE THINGS THAT YOU EVALUATE 20 YEARS, THE LIFE OF WHAT YOU THINK IT'S GOING TO BE.
COULD BE ONE OF THE EXTENDED SQS AS A JUDGE WAS SPREADING OUT VERSUS THE HVAC WOULD HAVE A LIFESPAN OF 10, SO YOU COULDN'T GO BEYOND.
>> LIGHTING IS SMALLER TO REACH FIX.
I WOULD LIKE TO THINK THEY'RE LONGER THAN THAT, BUT YES, WE DO A WEIGHTED AVERAGE.
BUT THE QUESTION WAS IF YOU'VE GOT ONE THAT'S A 20-YEAR LIFE, ONE THAT IS A 10 AND SO 10 CAN BE THE LIMITING FACTOR, BUT YOU CAN SAVE YOUR AVERAGE.
>> WE DO A WEIGHTED AVERAGE BECAUSE LIGHTS DON'T CROSS THIS.
THE OTHER THING THAT WHEN EVERYBODY RUNS OUT AND DOES THEIR LIGHTS THEN WHEN THEY GET TO
[00:40:05]
THE EXPENSIVE STUFF AND WE REQUIRE THINGS TO BE CASH-FLOW POSITIVE [INAUDIBLE].BUT WE TRY AND TELL PEOPLE DO IT HOLISTICALLY.
SOME OF THE BIGGER BUILDINGS, BELIEVE IT OR NOT, THERE'S A BIG EFFICIENCY DIFFERENCE IN ELEVATORS.
WE'LL SEE BIG DEVELOPERS USING THIS WITH ELEVATORS AND THEN THEY'VE GOT TO HAVE A LOT OF LITTLE STUFF TO MAKE IT BREAK EVEN BECAUSE THOSE ARE EVEN MORE EXPENSIVE THAN WALLS.
YOU GOT TO HAVE THAT BALANCE IN ORDER TO MEET OUR REQUIREMENTS.
HOW DID THIS COME ABOUT? THE STATE DID NOT WANT A FISCAL NOTE.
WE KNEW WHEN THE 2013 TEXAS PACE ACT GAVE CITIES AND COUNTIES THE ABILITY TO CREATE THIS PROGRAM, GAVE YOU SOME PARAMETERS.
IT'S ACTUALLY QUITE RESPECTFUL TO LOCAL GOVERNMENTS.
IT'S NOT A MANDATE, BUT IT LEFT THINGS PRETTY, IT HAD SOME TOUGH REQUIREMENTS, BUT HOW YOU MET THOSE REQUIREMENTS WERE UP TO YOU.
GENTLEMEN FROM THE TEXAS ASSOCIATION OF BUSINESS.
WE HAVE 25 PEOPLE MEET THAT WEEK.
THE GOVERNOR PERRY SIGNED THIS THING AND SAID ARE WE DONE? HE SAID IF YOU WANTED TO WORK AND YOU DON'T WANT EXPENSIVE PROGRAMS IN THREE OR FOUR CITIES, YOU ARE GOING TO HAVE TO DEVELOP A MODEL PROGRAM THAT'S UNIFORM ACROSS THE STATE WITH REQUIREMENTS THAT PEOPLE TRUST.
YOU'RE GOING TO HAVE TO HAVE SOMEBODY TRUSTWORTHY TO RUN IT BECAUSE LOCAL GOVERNMENTS ARE NOT GOING TO CREATE THIS BUREAUCRACY.
THIS WAS THE OUTCOME FROM OUR FIRST MEETING, WE BROKE INTO FIVE DIFFERENT WORKING GROUPS.
THE DIRECTOR OF THE STATE ENERGY CONSERVATION OFFICE WHO RUNS THEIR REVOLVING FUND I WAS TELLING YOU ABOUT.
HE WAS THE CHAIR OF THE TECHNICAL STANDARDS WORKING GROUP, THE GENERAL COUNSEL TO THE TEXAS MORTGAGE BANKERS ASSOCIATION WAS THE CHAIR OF OUR FINANCIAL PLATFORM WORKING GROUP MAKING SURE HOW ARE WE GOING TO DO THIS WITHOUT BONDS? HOW ARE WE GOING TO MAKE SURE THAT LOCAL LENDERS ARE ON THE SAME LEVEL PLAYING FIELD AS EVERYBODY ELSE? THE DESIGN WORKING GROUP, IS THIS A WEBSITE? WHAT DOCUMENTS DO WE NEED? WHAT'S THE PROCESS? THAT WAS CHAIRED BY FORMER SENATOR [INAUDIBLE] AND FORMER CHAIR OF ENERGY RENEWABLE ENERGY INDUSTRY ASSOCIATION.
THEN THE LAST GROUP WAS THE EDUCATION AND OUTREACH WORKING GROUP WAS CHAIRED BY A YOUNG WOMAN FROM HOUSTON NAMED KELLY PACE.
I TOLD HER WHEN SHE GOT MARRIED SHE CAN CHANGE HER NAME.
BUT ANYWAY, WE ENDED UP WITH 130 VOLUNTEERS.
ALL OF THE 78 LOCAL GOVERNMENTS I SPOKE TO YOU ABOUT ALL USE WHAT WE CALL PACE IN A BOX.
THE DOCUMENTS YOU HAVE FOLLOW THAT AND BECAUSE THEIR MODEL DOCUMENTS THROUGH THE SAME AS THE OTHER LOCAL GOVERNMENTS AROUND YOU.
IF SOMEBODY HAS A COUPLE OF DAIRY QUEENS OR THEY WANT TO FIX UP BUILDINGS IN MULTIPLE CITIES, THEY CAN AND THIS HAS HAPPENED.
CLOSE MULTIPLE PROJECTS WITH ONE LENDER ON THE SAME DAY BECAUSE OF THE UNIFORMITY.
WE TRY AND KEEP THE CONTRACTORS' PRICES DOWN AND THE LENDERS' PRICES DOWN BECAUSE THEY ONLY HAVE TO LEARN ONE PROGRAM AS OPPOSED TO A DIFFERENT PROGRAM AND EVERY TIME WE'VE WORKED HARD TO KEEP THINGS UNIFORM.
IF YOU DECIDE TO MOVE FORWARD, THERE'S A REPORT AND THESE ARE ALL THE MODEL DOCUMENTS PREPARED FOR CALDWELL THAT WILL GO ON YOUR WEBSITE SO THE PUBLIC WILL KNOW YOU'RE THINKING ABOUT THIS.
THE NEXT STEP IS TO CONSIDER A RESOLUTION OF INTENT THAT SETS A PUBLIC HEARING DATE, LETS PEOPLE KNOW YOU'RE THINKING ABOUT DOING THIS AND THEN YOU HOLD A PUBLIC HEARING.
YOU CREATE THE PROGRAM BY ADOPTING A RESOLUTION TO ESTABLISH AND THEN IT WOULD BE OUR HONOR, IF YOU DECIDE TO DELEGATE THE ADMINISTRATION OF THIS PROGRAM TO TEXAS PACE STORY, WE WOULD NEED SERVICES CONTRACT TO HAVE THE AUTHORITY TO DO THAT.
THAT'S NOT REQUIRED IN THE STATUTE BECAUSE IN STATUTE YOU COULD RUN IT YOURSELF IF YOU WANTED TO.
BUT THOSE ARE THE FOUR STATUTORY STEPS AND THEY HAVE TO BE DONE IN ORDER AND YOU'VE GOT ALL THE DOCUMENTS TO DO THAT.
THIS WAS OUR FIRST OFFICE BUILDING.
WE SEE A LOT OF THESE 1980S HVAC LIGHTING PROJECTS.
YOU'LL SEE FROM THE BLUE LINE IT'S CASH-FLOW POSITIVE.
THE YELLOW LINE IS IF THE INVESTORS HAD 1.3 MILLION TO JUST PAY FOR IT OUT OF POCKET AND THAT WOULD HAVE TAKEN THEM.
WAS THAT ABOUT 8.5 YEARS TO BREAK-EVEN? WHEN YOU BORROW MONEY FROM A BANK UNDER A FIVE-YEAR LOAN, YOU ADD THE INTEREST PAYMENTS, IT MAKES THE ROI EVEN LONGER.
THAT'S WHY WE HAVE DEFERRED MAINTENANCE.
IT'S NOT THAT ANYBODY'S DOING ANYTHING WRONG.
IT'S JUST YOU ARE BEING ASKED TO CREATE A MECHANISM THAT REDUCES THE RISK TO THE LENDERS TO GET OVER THAT VERY REAL MARKET ISSUE.
NOW THE THING HERE, YOU'LL SEE THEY'VE GOT $30,000 IN UTILITY INCENTIVES.
WE REALLY WANT EVERYBODY TO GET EVERY DOLLAR THEY CAN.
PACE COMPLIMENTS EVERY ECONOMIC TOOL OR SOURCE OF FUNDING OUT THERE.
THIS USED TO BE THE FALSTAFF BREWERY ON GALVESTON ISLAND.
[00:45:04]
IT'S GOING TO BE A HOTEL.IT'S ABOUT THREE OR FOUR BLOCKS FROM WHERE THE CRUISE SHIPS LAND.
YOU MAY HAVE DRIVEN BY THE FEED STORE AND 290.
MR. GLASS WANTED SOLAR AND WHAT'S REALLY GREAT ABOUT THIS IS THIS WAS ACTUALLY A COUPLE OF REALLY GREAT THINGS, BUT THIS WAS OUR FIRST LOCAL BANK-FUNDED PROJECT.
THEY WOULD NOT DO IT MORE THAN 10 YEARS.
IT HAD TO BE CASHFLOW POSITIVE.
WHAT MADE THAT WORK IS A SIGNIFICANT ENCORE GRANT THAT WAS, I THINK, 38,000 AND THE REST CAME FROM THE USDA RURAL ENERGY FOR AMERICA PROGRAM.
YOU'RE IN AN AREA WHERE A LOT OF YOUR PROPERTIES WILL QUALIFY FOR USDA GRANTS.
THIS IS THE OTHER ONE I WANTED TO SHARE WITH YOU.
THESE ARE THREE DOWNTOWN BUILDINGS IN WACO.
THEY WERE COMBINED AND THERE'S GOING TO BE OFFICE SPACE BEHIND THEM, BUT THIS WAS OUR FIRST DOWNTOWN MAIN STREET TYPE PROJECT.
I AM VERY HOPEFUL NOW THAT WE'VE GOT ONE AND WE CAN SHOW PICTURES OF IT, PEOPLE WILL BEGIN TO ENVISION WHAT THIS CAN DO THROUGHOUT THIS BEAUTIFUL WHEN PEOPLE JUST FALL IN LOVE WITH THESE BUILDINGS, BUT THE COST OF FIXING THEM UP IS JUST OVERWHELMING AND THIS PROGRAM MAKES THAT POSSIBLE.
THIS ONE IS A DOWNTOWN TEMPLE AND IT'S GOING TO BE NINE STORIES OF APARTMENTS WITH FIRST-FLOOR RETAIL.
THIS ONE HAD NEW MARKET TAX CREDITS.
WE'VE SEEN PACE WITH OPPORTUNITY ZONE MONEY, HISTORIC TAX CREDITS, BOTH STATE AND FEDERAL, LOCAL TIF MONEY, I THINK WE'VE HAD [INAUDIBLE].
THE BOTTOM LINE IS PEOPLE PUT THESE CAPITAL STACKS TOGETHER.
THEY GOT TO RAISE MONEY TO BUY THESE BUILDINGS AND FIX THEM UP.
THEY DO IT ALL AT THE SAME TIME AND THEY'RE ALWAYS SHORT.
THEY CAN EITHER GO BACK TO THE ARCHITECTS OR THE MEP, THE ENGINEER DESIGNERS AND SAY, CUT OUT WHAT PEOPLE DON'T SEE.
WELL, YOU KNOW WHAT THAT'S GOING TO BE.
IT'S GOING TO BE THE ENERGY AND WATER SAVINGS UNTIL THOSE BUILDINGS END UP BEING CONDEMNED TO HIGHEST COSTS FOREVER.
THEY'RE GOING TO PAY FOR IT ONE WAY OR THE OTHER.
THIS JUST ENABLES THEM TO DO IT RIGHT AND THEN EVERYBODY REAPS THE BENEFITS AFTER THAT.
THIS IS THE OLD XTO HEADQUARTERS.
XTO, THE OIL AND GAS COMPANY MOVED THEIR HEADQUARTERS TO HOUSTON, AND LEFT BEHIND SEVERAL OF THESE BEAUTIFUL HISTORIC BUILDINGS IN DOWNTOWN FORT WORTH.
PUTTING AND REPURPOSING BUILDINGS THAT WERE OFFICE BUILDINGS, NOW THAT PEOPLE REALLY AREN'T GOING BACK TO WORK IN THE SAME WAY, WHAT IS THE NEW HIGHEST AND BEST USE FOR THEM? FOR A LOT, IT'S HOUSING.
WE'VE EVEN GOT ONE IN ROCK PORT WHERE THE DEVELOPER WAS GOING TO DO [INAUDIBLE] THE RIGHT THING TO DO IS APARTMENTS.
IF WE CAN TELL, TEXAS DEAL WITH THAT, THAT WOULD BE GREAT.
THE AMARILLO HOTEL, 55 PERMANENT JOBS.
I THINK THERE ARE GOING TO BE SEVEN PERMANENT EMPLOYEES IN TEMPORAL IN THAT APARTMENT COMPLEX.
THIS IS THE FIRST ONE THAT TAUGHT ME ABOUT JOBS.
THIS IS AN OLD HAGAR SEWING PLANT IN COOSA COUNTY.
IT HAD BEEN EMPTY FOR 10 YEARS BECAUSE MEN JUST DON'T WEAR SUITS.
A COMPANY IN MISSOURI THAT MAKES SPORTING UNIFORMS, CHEER LEADING UNIFORMS, SELL TO RAWLINGS AND BIG COMPANIES LIKE THAT DID A SITE VISIT IN TEXAS AND CALLED THE ECONOMIC DEVELOPMENT DIRECTOR FOR, OF COURSE, CANNON COUNTY AND SAID, SCOTT, WE'RE DOING A SITE VISIT.
WE'RE MOVING MOST OF OUR BUSINESS TO TEXAS.
YOU'VE GOT EXACTLY WHAT WE NEED, BUT OUR CUSTOMERS REQUIRE US TO BE GREAT.
OUR CUSTOMERS REQUIRE US TO BE GREAT.
IF YOU WILL CREATE A PACE PROGRAM, WE WILL BUY THAT BUILDING.
I DID INSPECT ON THE TAX ROLLS AND 60 PEOPLE WORK THERE NOW.
THERE ARE LOTS OF RESOURCES OUT THERE.
IF YOU DECIDE TO MOVE FORWARD, I'LL BE BACK AND I'LL JUST KEEP ANSWERING QUESTIONS AS LONG AS YOU NEED ME TO.
WE DID A WEBINAR [INAUDIBLE] THE DEPARTMENT OF ENERGY CAME OUT WITH AN ASSESSMENT TOOL FOR BIG CITIES BUT EVERY COUNTY IN THE COUNTRY, THAT YOU CAN RUN THIS REPORT AND IT WILL TELL YOU IT'S A HIGH-LEVEL, IT'S DATED A COUPLE OF YEARS VIEW OF WHAT YOU'VE GOT.
SO LOOKING AT THIS REPORT FOR CALDWELL COUNTY, AND I'LL EMAIL THIS TO EVERYBODY, THIS DOESN'T INCLUDE MULTI-FAMILY, BUT IF YOUR OTHER COMMERCIAL BUILDINGS USED PACE, THE PACE PROJECTS WOULD RESULT IN ABOUT SEVEN MILLION IN ECONOMIC ACTIVITY HERE.
[00:50:05]
OF THE 260 BUILDINGS INCLUDED IN THIS ENERGY SAVINGS ANALYSIS, 100% OR 260 BUILDINGS ARE ESTIMATED TO HAVE AT LEAST ONE COST-EFFECTIVE ENERGY EFFICIENCY UPGRADE, 74 OF THEM HAVE AT LEAST FOUR DIFFERENT IMPROVEMENTS THAT THEY COULD DO.IN CALDWELL COUNTY, TEXAS, 99% OR 258 BUILDINGS HAVE A COST-EFFECTIVE PACE ELIGIBLE COMBINED RETROFIT THAT WOULD WORK.
YOUR BUILDINGS THAT COMPRISE RETAIL HAVE THE GREATEST POTENTIAL FOR ENERGY SAVINGS.
ANYWAY, LOTS OF DETAILS, BUT IT'S MORE THAN THEORY.
HERE, YOU HAVE BEAUTIFUL LITTLE BUILDINGS AND LIKE EVERYWHERE ELSE IN THE COUNTRY, IT'S NOT UNIQUE TO CALDWELL COUNTY, BUT THERE'S A LOT OF SAVINGS THERE, A LOT OF JOB POTENTIAL.
WHILE YOUR HVAC AND ELECTRICAL GUYS THAT KEEP TELLING PEOPLE YOU GOT TO REPLACE IT AND GET PAID TO DO A REPAIR INSTEAD, MIGHT ACTUALLY BE ABLE TO START UPGRADES.
>> I KNOW YOU KEEP TALKING ABOUT THE COUNTY, BUT WHAT ABOUT OUR CITY ENTITIES THAT'S WITHIN THE COUNTY?
>> IF YOU CREATE A PACE PROGRAM WITH A GEOGRAPHICAL BOUNDARY OF THE COUNTY, EVERY PROPERTY THAT IS ELIGIBLE, COMMERCIAL, INDUSTRIAL, OR MULTI-FAMILY.
THE CITIES DON'T HAVE TO DO ANYTHING SEPARATELY.
>> THAT'S A GREAT QUESTION. I DID SPEAK WITH MR. BAILEY [INAUDIBLE] AND MR. KAMAL LANDER HERE AND THEY BOTH WERE LIKE, YEAH, WHY NOT?
>> WELL, I KNOW [OVERLAPPING] MY PRECINCT AND THERE'S SEVERAL OF THOSE BUILDINGS DOWNTOWN THAT ARE SITTING.
THIS IS SOMETHING THAT FITS RIGHT IN THEIR CATEGORY.
>> [OVERLAPPING] EVERY BUILDING DOWN THERE WOULD PROBABLY QUALIFY.
>> [OVERLAPPING] EVERY SINGLE ONE OF THEM.
>> LET ME SET SOME EXPECTATIONS.
I TELL THIS TO EVERY LOCAL GOVERNMENT.
THIS ISN'T ONE OF THOSE, IF YOU BUILD IT, THEY WILL COME.
WE'RE GOING TO HAVE TO GET OUT THERE AND GET IN FRONT OF THE CHAMBERS.
IF YOU DECIDE TO MOVE FORWARD, PLEASE GET ME IN TOUCH WITH YOUR SERVICE CLUBS, THE CHAMBER, WHOEVER BECAUSE THEY CAN'T USE A PROGRAM THEY DON'T KNOW ABOUT.
>> DO YOU WANT MEETINGS WITH LENDERS AS WELL [INAUDIBLE] LENDERS.
>> YES. THEY GENERALLY ARE LIKE, DON'T BOTHER ME UNTIL I CAN USE IT.
BUT ONCE IT'S REAL, WE HAVE A BIG EDUCATION JOB AND LENDERS DON'T REALLY UNDERSTAND IT YET, SO WE KNOW THAT, BUT OUR LONG-TERM GOAL IS TO HAVE EVERY LOCAL LENDER IN THE COUNTRY OFFERING PACE AS A PRODUCT SO THEY'RE NOT JUST GRANTING CONSENT.
THEY'RE ACTUALLY MAKING LOANS, BUT I WANT TO SET EXPECTATIONS.
YOU'RE NOT GOING TO SEE AN OVERWHELMING RUSH TO USE THIS PROGRAM.
I JUST WANT TO BE HONEST WITH YOU ABOUT THAT.
I THINK IT WAS 18 MONTHS FOR OUR FIRST PROJECT IN TARRANT COUNTY AND FORT WORTH.
JUDGE WHITLEY HAD BEEN ANSWERING WHOLE A LOT OF QUESTIONS.
IT TOOK QUITE A WHILE AND THEY CREATED THE PROGRAM AND THEN WE SAT FOR 18 MONTHS.
THEN IN 2019, HALF THE PROJECTS DONE IN TEXAS WERE IN FORT WORTH.
ACTUALLY, [INAUDIBLE]. THEY WERE IN TARRANT COUNTY.
SO IT JUST TAKES THE TIME IT TAKES.
>> DO YOU HAVE ANY QUESTIONS? THANK YOU. [BACKGROUND] GO AHEAD.
>> THAT'S A REALLY GOOD QUESTION.
THE QUESTIONS COME UP AND I REALLY DO WANT TO KNOW WHO WE ARE SUPPOSED TO WORK WITH.
SOMETIMES IT'S THE JUDGE, IT'S WHOEVER YOU WANT IT TO BE.
WHERE WE REPORT TO SOMEBODY WORKING ON ECONOMIC DEVELOPMENT, THIS DOES BETTER BECAUSE THEY HEAR WHEN SOMEBODY NEEDS HELP, BUT RESPECTFULLY, WE WILL REPORT TO WHOEVER YOU WANT US TO.
>> I THINK IN MY MIND, IT PROBABLY WOULD BE BETTER TO REPORT TO YOUR OFFICE ONLY FOR THE REASON THAT I MIGHT NOT GET RE-ELECTED THIS FALL.
SO IF THEY'RE REPORTING TO ME AND I'M GONE, I'M NOT GOING TO BE AVAILABLE FOR QUESTIONS AFTER THAT.
[LAUGHTER] SO THAT CAN BE IN MY NEXT PHASE OF MY LIFE.
IT NEEDS TO BE A STAFF PERSON IS THE POINT AND NOT SOMEBODY THAT'S SUBJECT TO [OVERLAPPING] NOT BEING RE-ELECTED.
>> YEAH, NOT TO AN ELECTING OFFICE BECAUSE IT CHANGES.
>> ANY OTHER QUESTIONS? THANK YOU.
[00:55:01]
THANK YOU-ALL FOR YOUR TIME.>> WITH THAT, WE'LL MOVE TO ITEM 2, ADJOURNMENT.
>> I'LL MAKE A MOTION WE ADJOURN.
>> WE HAVE A MOTION TO ADJOURN.
DO WE HAVE A SECOND? WE HAVE OUR MOTION AND A SECOND.
>> WE ARE ADJOURNED AT 10: 57.
* This transcript was compiled from uncorrected Closed Captioning.