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[1. Certification of Notice Posted for the Meeting]

[00:01:39]

>> LIST OF ALL THE PROJECTS REQUESTED BY AN EACH CAMP US AND TOTAL DOLLAR THAT ADS UP TO.

>> THIS IS NOT WHAT I ASKED FOR BECAUSE I WANTED IT FOR THIS DISCUSSION.

ARE WE GOING TO GET THIS ANY TIME SOON >> I CAN GO BACK AND REDO IT.

BUT IT WILL TAKE A COUPLE HOURS MAKE THIS AFTERNOON WHILE WE'RE DOING THAT.

>> I NEEDED THIS FOR THIS DISCUSSION THIS MORNING.

THAT'S WHY I REQUESTED IT.

>> ANYTHING ELSE MS. COMPTON >> NO, THAT'S IT.

MR. ROBERTSON IF YOU COULD PLEASE INTRODUCE THOSE WHO ARE ACCOMPANYING YOU.

>> I WOULD LIKE TO BUT I'M GOING TO LET THEM DO SELF INTRODUCTIONS BECAUSE AT THE

SAME TIME >> BUT I SAID-- THEM, I WOULD LIKE TO GIVE A SHORT BIO ABOUT THEMSELVES.

I'VE KNOB BOB ESTRADA FOR A NUMBER OF YEARS.

HE'S A GREAT VIBE.

BUT JUST TO GIVE YOU AN IDEA OF WHO WE'VE USED CO-FINANCIAL ADVISORS ON THIS SIDE.

BUT I WANT YOU ALL TO GO THROUGH AND DO YOURSELF INTRODUCTIONS WITH THE BIO

>> THANK YOU VERY MUCH, JOHN.

GOOD MORNING TO TO THE BOARD.

[2. Master Plan and General Obligation Bonds]

WE SPECIALIZE, WE'RE A FULLY REGISTERED BROKERAGE FIRM LIKE WITH AT NATIONAL REGULATORS.

BUT WE LIMIT OUR ACTIVITIES TO SOLE TOLL PUBLIC FINANCE.

ONLY THING WE DO AS A BUSINESS IS MUNICIPAL POND TRANSACTIONS EVEN AS BOND UNDERWRITER OR SELLING THE BONDS OR AS FINANCIAL MUNICIPAL ADVISOR TO LIKE THIS.

STARTED IN 1992.

DOES FOR LAST 10 TO 12 YEARS WE HAVE CONSISTENTLY RANKED NUMBER 2 IN TEXAS.

AND THE RANKINGS OF FIRMS THAT DO WHAT WE DO.

AND YOU'LL MEET NUMBER ONE IN JUST A SECOND HERE.

BUT, WE'RE VERY PROUD TO REPRESENT THE DISTRICT CURRENTLY AS YOUR FINANCIAL ADVISOR.

AND GLAD TO BE HERE AND HAPPY TO ADDRESS ANY QUESTIONS THAT COME UP.

>> JASON HUGHES WITH A HILLTOP SECURITIES MY PARTER IN THE BEHIND ME.

WE HAVE BEEN HAPPY TO REPRESENT THE DISTRICT AS CO-FINANCIAL ADVISOR ALONG WITH IS EXTRA TODAY SINCE 2003.

JUST A VERY QUICK, WE WERE WITH SOUTHWEST BEFOREHAND IF YOU HAVEN'T HEARD A HILLTOP SOUTHWEST WAS OUR PREDECESSOR WE GO BACK TO 1946 WHEN WE WERE CREATED TO

[00:05:05]

SERVE FINANCIAL ADVISORY CLIENTS.

WE ARE HEAD QUARTERED HERE IN DALLAS.

WE ARE AS BOB SAID THANK YOU, BOB THE NUMBER ONE FINANCIAL ADVISOR IN TEXAS.

NUMBER ONE FINANCIAL ADVISOR FOR ISSUES OF HIGHER EDUCATION.

PLEASURE TO BE HERE TODAY, AND LOOK FORWARD TO DISCUSSING THIS IMPORTANT ITEMS.

>> MEMBERS OF THE BOARD AND CHANCELLOR, MY NAY IME IS JEFF LEUSCHEL.

I HAVE REPRESENTED THE DISTRICT AS BOND COUNCIL CO-COUNSEL FOR 20 YEARS I ALSO REPRESENT COUNTY CAUSE DISTRICT COLLIN COUNTY AND A TWO OTHER DISTRICTS AROUND THE STATE.

WE HAVE ADVISED THIS BOARD BACK IN 2004 WHEN THE LAST BOND ELECTION OF THE BOARD CALLED WAS PRESENTED TO THE VOTERS AND APPROVED.

AND WE'RE HAPPY TO BE HERE TODAY TO ANSWER ANY QUESTIONS YOU HAVE ABOUT THIS PROCESS.

>> GOOD MORNING LADIES AND GENTLEMEN.

MY NAME TANYA TARPEH.

I WORK WITH A FIRM OF WEST & ASSOCIATES.

MOST OF US KNOW AS WEST.

THIS IS HIS LAW FIRM.

AND I'VE BEEN WITH THE FIRM SINCE ABOUT 2001.

WE HAVE ABOUT TEN LAWYERS PUBLIC FINANCE IS RIGHT NOW OUR LARGEST AND A FASTEST GROWING DIVISION.

WE HIRED A COUPLE WE'RE NOW UP TO FOUR LAWYERS THAT PUBLIC ON PUBLIC FINANCE I FOCUS SOLELY ON PUBLIC FINANCES SINCE I STARTED WITH FIRM.

WORKED WITH DISTRICT WITH JEFF AND SINCE EARLY THE 2000 YEARS.

I LOOK FORWARD TO WORKING WITH YOU IF YOU GO FORWARD >> WE USE ALL OF THESE PEOPLE BEHIND THE SCENES, I DON'T DREAM UP ALL OF THIS STUFF.

LADIES AND GENTLEMEN, REALLY HAVE A LARGE INPUT INTO THAT I APPRECIATE WORKING WITH ALL OF THEM.

KNOWN MOST ALL OF THEM FOR A NUMBER OF YEARS.

CAN'T BE IN HIGHER ED AND NOT RUN INTO THE SAME PEOPLE OVER THE YEARS.

SO, A LITTLE STORY ON JASON, I THINK HE WAS AN ANALYST BACK WHEN I WAS WITH FLYNN COLLEGE AND AISSUING MY FIRST BOND BACK IN THAT TIME.

SO IT, SOMETIMES, YOU JUST RUN INTO AT SAME PEOPLE OVER AND OVER.

>> WE'RE GOING TO GO THROUGH THREE MAJOR ITEMS TODAY.

AT SOME POINT WE WILL HAVE YOU YOU'RE WELCOME TO ASK QUESTIONS.

IF BOND COUNSEL OR FINANCIAL ADVISORS FEEL THOSE QUESTIONS THEY NEED TO ANSWER I'LL DEFINITELY LET THEM DO THAT.

BUT WE'RE GOING TO TALK ABOUT HOW BEEFY WE'VE GOTTEN TO THE WHAT WE CALL THE INTEGRATED NETWORK FACILITY PLANS.

FINANCIAL ADVISORS WILL TALK ABOUT THE SCENARIOS WE'VE GONE THROUGH TO SEE HOW WE CAN FINANCE THEM.

AND BOND COUNSEL WILL TALK ABOUT JUST GENERAL IDEAS ABOUT WHAT THE PROCESS IS, OF WHAT WE GO THROUGH HERE.

>> THIS IS HAD BEEN GOING ON FOR A WHILE.

WE SHOWED THIS STARTING IN EARLY OF REALLY WHEN WE STARTED PUSHING TO GET AT

MRAS >> SOME SATURDAYED A YEAR OR TWO EARLIER WE REALLY KNEW AT POINT THAT WE NEEDED TO START GETTING THIS FINISHED.

WE WE KNEW WE WERE BEHIND ON GETTING WHAT WE NEEDED TO GET DONE.

SO WE'VE GONE THROUGH THOSE PROCESSES.

AND THEN AT THE SAME TIME >> WE KNEW IT WAS GOING SOMEWHERE AROUND BILLION DOLLARS.

WE HAD TO START WORKING ON SOME WAY OF HOW DO WE WORK WITH EVERYBODY IN THE DISTRICT, OF SATISFYING STRATEGIC PRIORITIES FOR FACILITIES.

AND BEING ABLE TO A PRIORITIZE THESE PROJECTS ON AN EQUITABLE BASIS.

SO WE WORK WITH COLLIERS ONE OF THINGS THEY BROUGHT TO THIS BOARD AND FOUND, IS FROM MASTER PLANS.

WE HAD A LOT OF DUPLICATED PROJECTS ACROSS THE WHOLE DISTRICT.

THEY ALSO FOUND OUT THAT THERE WERE SOME HOLES IN OUR MASTER PLANS MAINLY THAT WE DIDN'T HAVE CONSIST INCIDENTS EDUCATION PLANS.

THAT'S ONE OF THE THINGS THEY FOUND THAT WE'RE WORKING ON.

SO THEY HELPED US WITH THIS IDEA OF TRYING TO GO THROUGH AND BUILD THIS PRIORITIZATION MODELS WHICH WE HAVE FINISHED AND ACTUALLY HAD WORK SESSIONS AND ALL DAY WORK SESSION WITH COLLIERS PRESIDENTS AND ALL THEIR VICE-PRESIDENTS GOING THROUGH AND REFINANCING PRIORITIZATION MODEL.

>> SO NOW.

WE'VE GOT A LIST, LIKE WE WOULD LIKE YOU ALL TO LOOK AT IT HERE'S WHAT WE'RE GOING TO LOOK AT DOING WHAT WE THINK WE NEED TO DO AS WE MOVE FORWARD.

[00:10:06]

SO WITH IT INTEGRATED MASTER PLAN, IT WAS PRESENTED TO BOARD IN APRIL 2018.

I REMEMBER AT THAT POINT WE WERE ALL WONDERING WHAT THE TOTAL WAS GOING TO BE AND THERE WAS A TOTAL OF $2 BILLION THAT WAS BROUGHT UP THAT FROM ALL THE FACILITY MASTER PLANS THAT EACH THE COLLEGES HAVE DONE WITH THEIR ARCHITECTURAL FIRMS. WHAT WE THEN REALIZE WE COULDN'T AFFORD THAT AND STARTED WORKING WITH THE COLLEGES TO GO BACK AND REDO THAT INITIAL MASTER PLAN LIST USING COLLIER'S PRIORITIZATION MODEL.

WE GOT IT DOWN TO JUST UNDER 1.4 MILLION.

>> GO AHEAD.

>> BILLION.

>> KEEP ME IN LINE.

>> THERE YOU GO.

WANT TO STRESS ABOUT WE KEEP REFERRING TO COLLIERS PRIORITIZATION MODEL AND REALLY WHAT THAT DID WAS ALLOWED THE DISTRICT TO HAVE A FOUNDATION FOR UNDERSTANDING HOW TO MEET THE NEEDS OF THE STUDENTS, THE EMPLOYERS, AND THE COMMUNITY.

NOT THINKING OF NOT ALLOWING TO THINK INSTITUTIONAL NOT JUST WHAT'S IN FOR US BUT REALLY HOW TO MEET OVERAVERAGING GOALS.

THEY >> PROVIDE PROVIDED SUBJECTIVE VUL ANALYSIS >> THAT'S CORRECT.

OTHER THING TOO JOHN REFERENCED WE HAD WORKSHOPS WITH COLLIERS THEY LED THE WORKSHOPS THAT THEY HAD IN THE ONE THING ONE REALLY COOL THING I THOUGHT ABOUT IT WAS THAT WE WERE IN THIS ROOM, AND THEY HAD THE TABLES SET UP, AND YOU AREN'T REALLY ALLOWED TO SIT WITH YOUR GROUP.

SO YOU AREN'T WITH YOUR HOME.

YOU ARE WITH OTHER DISTRICTS OTHER SCHOOLS AROUND THE DISTRICT.

SO AS THEY ROLLED OUT THESE GUIDELINES FOR HOW TO INSTITUTE THIS MODEL, YOU REALLY HAD TO THINK OUTSIDE THE BOX FROM WHAT WAS NOT YOUR COMFORT LEVEL BUT WHAT IS WAS REALLY BEST FOR THE DISTRICT.

>> >> AND THAT HAPPENED?

THAT'S GREAT >> IT WAS EXCITING.

I'LL LET THEM SPEAK.

IT WAS ONE OF THE MOST ACTIVE SESSIONS WE'VE HAD WITH PRESIDENTS AND VICE-PRESIDENTS ON WORKING ON SOMETHING TOGETHER.

AND WHAT WE REALLY NEED TO DO IS LOOK AT THIS AND HOW WE'RE GOING TO DO THIS AND GET THESE USING STRATEGIC PRIORITIES AND MEET ALL THE NEEDS WE HAVE ACROSS THE COUNTY AND NOT JUST LOOK AT INDIVIDUAL COLLEGES.

>> I'M SORRY.

>> WAS IT A POSITIVE MAKE UP OF THERE WERE PRESIDENTS VICE-PRESIDENTS, REPRESENTATIVES FROM THE INSTRUCTIONAL SIDE THAT WERE THERE.

SO THERE WAS A DEFINITELY A DIVERSE GROUP OF ATTENDEES.

>> YES.

>> I DON'T KNOW, BECAUSE I WASN'T HERE I DON'T KNOW IF WE'VE EVER DONE THAT BEFORE.

THAT IS PART OF WHAT WE WERE WORKING ON IS TRYING TO BUILD THIS IN AND PARTLY WITH THE WAY THIS BOARD IS PUSHING, IS THIS PROCESS BECOMES AN ANNUAL PROCESS.

WE DON'T DO IT ONCE, AND PUT IT ON THE SHELF FOR FIVE YEARS AND SAY WE'RE DONE WITH IT.

WE KNOW NEEDS ARE GOING TO CHANGE.

MARKETS IS GOING TO CHANGE.

WE NEED TO BUILDING THIS IN AND ALL THIS BUILDS TO IS THAT WE BUILD IN TO AN ANNUAL PROCESS OF REVIEWING.

NOT JUST OUR OPERATING BUDGET, BUT OUR CAPITAL NEEDS OUR INSTRUCTIONAL NEEDS OUR PERSONNEL NEEDS.

AND WE BUILD ALL OF THAT INTO, $2 BILLION WORTH OF PROJECTS THAT WE LAST SAW IN APRIL OF LAST YEAR.

AND CAN YOU APPLY CRITERIA TO DESCRIBE AND ONE BILLION CAN YOU MAKE SOME GENERALIZATIONS ABOUT WHAT FELL OUT?

I MEAN WHAT WERE THE TYPES OF THINGS THAT DID NOT MAKE THE CUT, AND >> SOME OF THINGS WE LOOKED AT THAT LIST INCLUDED A LOT OF THINGS LIKE POTENTIAL P 3 PROJECTS.

FOR AROUND BOND AUTHORIZATION P 3 IS TOTAL DIFFERENT ANIMAL AND HAS, I'M GOING TO SAY THIS, REALLY USUALLY SEPARATE FROM JOOE OH BOND ISSUE.

SOMETHING YOU DO USUALLY AFFECTS THE OPERATING BUDGET.

WE WENT BACK THROUGH AND LOT OF THOSE THINGS WE CALLED OUT.

SOME OF THEM MIGHT HAVE BEEN LEASES.

THERE WERE SEVERAL DIFFERENT OPTIONS THAT IN THERE.

THAT'S NOT AN OPERATING BUDGET ITEM.

WE TOOK THOSE LISTS AND STARTED GOING THROUGH THOSE.

WHAT STARTED COMING OUT WITH OUR WORK IS THAT WE KNEW AS WE'VE DONE WITH ALL OF THIS IS, THE STRATEGIC PRIORITIES THIS BOARD HAS SET OVERLYING CRITERIA OF HOW WE NEED TO LOOK AT PROJECTS.

SO, TAKING CARE OF OUR WORK FORCE NEEDS.

TAKING CARE OF OUR COMMUNITY.

TAKING CARE OF OUR STUDENT NEEDS.

AND WE'RE GOING TO GO INTO THAT I LOVE TO CALL THESE THINGS BUCKETS.

THEY ARE NOT REALLY.

BUT WAY TO TRY TO GET YOUR HANDS AROUND A $1 BILLION LIST OF WHERE DO THESE THINGS FALL.

[00:15:01]

AND WE'LL TALK ABOUT THAT IN A LITTLE BIT.

THERE ARE STILL MORE TO DO ON THAT.

THERE'S ROUND THAT NEEDS TO GO THROUGH WITH THIS.

BUT RIGHT NOW WHAT WE'VE DONE IS GOT THIS LIST OF THINGS WE THINK WE NEED BUT I DO KNOW SEEING THE FINANCING WE'RE GOING TO ISSUE THESE OVER TIME PERIODS.

WE DID THAT WITH 2004.

WE DIDN'T ISSUE 450 MILLION DAY ONE.

IT WAS FOUR OVER SIX YEARS.

>> BUT OTHER THING TOO IS THAT EVEN THOUGH THIS LIST WAS PARED DOWN FROM $2 BILLION TO $1.1 BILLION THIS IS JUST FOR GEO BOND FINANCING.

THERE ARE SOME ITEMS OUT OF THE THIS LIST THAT WERE TAKEN OUT OF THE ONE THAT WE'RE WENT PRESENTING TO YOU GEO BOND THAT WE WILL REVISITING FOR FINANCING IN DIFFERENT MEANS WE MAY FINANCE FROM OPERATING FUNDS.

WE MAY DO SOMETHING DIFFERENT >> ARE THERE STILL OTHER ITEMS WITHIN THIS 1.1

BILLION THAT FIT INTO AN OPERATIONAL BUDGET FORMAT >> NO.

NO.

EVERYTHING HERE SHOULD GO INTO GEO.

>> OUR OTHER ITEMS WE NEED.

LIKE WHAT HAS BEEN DRIVING IS STAYING TO $0.02 TAX RATE AND SATISFYING STRATEGIC PRIORITIES.

SO ARE THERE STILL OTHER THINGS WE NEED TO DO? YES.

BUT, AS MUCH AS WE TRY TO AFFORD THE $1.4 BILLION, WORKING WITH THE FINANCIAL ADVISORS HAVE GOT TO POINT WE JUST COULDN'T DO THAT TO MAINTAIN NUMBER ONE CRITERIA.

AND WAS SAID EARLIER SOME OF THE THINGS THAT WE ARE WERE IN 1.4 BILLION WILL STILL BE DONE.

BUT WE'LL, WE'LL DO THOSE EITHER ON AN OPERATING WE MAY NEED TO REVENUE BONDS TO HANDLE THOSE.

THEY NEED TO BE DONE.

OTHER THINGS ON THE LIST THAT WERE PULLED OUT THAT ARE STILL GOING TO BE DONE, WE HAD ADA COMPLIANCE ISSUES.

WE HAD SOME OTHER THINGS THAT WERE THERE, THOSE REALLY NEED TO, THOSE SHOULDN'T BE GENERAL OBLIGATION BOND ITEMS. THEY REALLY NEED TO BE HANDLED.

THAT'S WHY WE ARE PROPOSING INCREASING THE AMOUNT OF DEFERRED MAINTENANCE FROM 16 MILLION A YEAR TO UP TO 34 MILLION A YEAR IS BECAUSE THOSE THINGS NEED TO BE

HANDLED THROUGH THAT ROUTE NOT THROUGH THE BOND ROUTE >> WE'RE TRYING TO A MIXTURE AS MUCH AS WE CAN TO GET ALL OF IT DONE.

BUT IT WON'T HAPPEN OVERNIGHT.

AND WE WILL NEED TO WORK ON THESE ALTOGETHER TO FIGURE OUT HOW DO WE AFFORD.

THIS IS QUITE A DIFFERENT APPROACH FROM 2004.

2004 CRITERIA WAS BASED ON THE COLLEGE NEEDS, THIS GO ROUND IT'S ON THE NEEDS OF STRATEGIC PLAN AND THE NETWORK BUT THERE WAS COLLEGE INPUT FROM PRESIDENTS VICE-PRESIDENTS AND INSTRUCTIONAL PEOPLE IN TERMS WHAT IF WOULD BE INCLUDED IN THIS, WHAT YOU'RE BRINGING TO US.

IN OTHER WORDS THEY HAVE NOT BEEN SHUT OUT OF THE PROCESS, THEY'VE BEEN

INCLUDED >> AND THEY WILL CONTINUE TO BE INCLUDED.

BECAUSE NEEDS WILL CHANGE.

AND AS WE GO THROUGH THIS, WE MAY SEE AS WE'RE DOING THIS ON AN ANNUAL BASIS OF HOW THESE THINGS NEED, ONE THE OUT NEEDS CAN CHANGE.

ONE CLASSICS THAT WE TALK ABOUT ARE ALL THE THINGS WE NEED TO DO IMMEDIATELY ON THE EARLY COLLEGE HIGH SCHOOL SPACE.

THERE'S THINGS I'M GOING TO HAVE TO FUND OUT OF OPERATING BUDGET BECAUSE THEY NEED SPACE TODAY.

WHETHER THAT'S PORTABLE BUILDINGS THAT HURTS I REALLY THERE LIKE THEM.

BUT YOU KNOW WE'RE GOING TO LEASE THEM INSTEAD OF BUYING THEM YOU BUY THEM THEY STAY.

SO WE'VE GOT TO FIND A WAY THAT WE WORK THROUGH THESE IMMEDIATE NEEDS AND THOSE ARE GOING TO BE TRAITING BUDGET ITEMS. I HAVE THOSE THINGS IN HERE BUT THEY ARE ALSO A LOT OF COLLEGE HIGH SCHOOL OR WHAT I'LL REALLY JUST CALL ENROLLMENT ITEMS THAT ARE GOING ON TO BE ABLE TO MEET

THE NEEDS OF OUR STUDENTS AND HAVING THE SPACE WE NEED >> AND THAT'S GOOD POINT.

WHEN WE STARTED THIS PROCESS WE WERE REALLY EXPECTING PRETTY MODEST GROWTH, NOT A TYPE OF 14 NEAR WILL 15 PERCENT GROWTH THAT WE DID THIS YEAR.

WE'RE EXPECTING THE SAME GROWTH NEXT YEAR AND NEXT YEAR AND NEXT YEAR.

AS WE EXPAND OUT.

SO, WE, WHEN WE STARTED, WE'RE LOOKING A TWO PERCENT.

TODAY, YOU KNOW, 10,000 GROWTH THIS YEAR.

10,000 GROWTH NEXT YEAR.

WE CAN EXPECT IT FOR THE NEXT FOUR YEARS AT LEAST.

>> HOW MUCH OF THAT IS PURCHASED?

>> I DON'T UNDERSTAND THE QUESTION >> THE EARLY COLLEGE HIGH SCHOOLS WE PAY MONEY TO GO TO EACH EACH HIGH SCHOOL PER YEAR, CORRECT?

>> THE $750,000 >> NO, WELL, THAT'S, THE COST TO US.

ALLOCATION.

WE'RE NOW UP TO ABOUT 600 PEOPLE WORKING ON THAT PROJECT THAT'S OUT THERE.

SO EVERY TIME WE GROW, WE HIRE FACULTY AND OTHERS THAT AFFECTS ENTIRE COLLEGE.

5,000 OF THAT GROWTH ARE IN OUR CLASSES ON CAMPUS.

OTHERS ARE ONLINE.

SO NO LONGER THE 750,000 THAT WE CHIP IN >> SURE.

WELL IT'S NOT KICK IN.

THAT'S THE COST TO US TO DO IT.

[00:20:02]

AS WE EXPAND THAT OUT.

YOU FOLD INTO THE OPERATING BUDGET BUT ALSO THESE BRING CONTACT REIMBURSEMENT >> SURE OUR TUITION AS GONE UP AS A RESULT OF COLLECTIONS.

>> WE'RE GETTING MORE TUITION BECAUSE IT'S NOT, IT'S NOT A ZERO SUM GAIN OF

750 THOURDZ TUITION REIMBURSE >> AS WE REROOE MOVE >> SAY THAT AGAIN.

>> THE TUITION OF THE STUDENTS MAY DO WHAT?

>> TUITION REIMBURSEMENT WE GET FOR STUDENTS CONTACT REIMBURSEMENT HELPS MAKE UP

SOME OF THAT $750,000 YES OR NO >> IT DOES.

BUT EVERY TIME WE GROW EVERY TIME WE ADD A STUDENT IT'S COST.

>> IT TAKES TWO YEARS TO GET STATE APPROPRIATIONS TO KICK IN YOU HAVE COUNTY THEN IT GETS SUPPLIED FOR THE FOLLOWING BIENNIUM.

REALLY A TWO YEAR DELAY ON GETTING THEM.

THAT'S WHY WE FUND COLLEGES WITH SOME EXTRA MONEY DURING THAT INTERIM PERIOD.

BUT WE'VE WORKING ON IT WE'RE GOING BACK AND REVISING THAT PRO FOR MA AGAIN TO LOOK WHAT IT IS TODAY.

BECAUSE WE HAVE THREE YEARS WORTH OF HISTORY RIGHT NOW WE DIDN'T WHEN WE FIRST STARTED THIS.

WE FOUND THAT IN TALKING WITH EASTFIELD THE OTHER DAY WE NEED TO LOOK AT AND WE'VE GOT A BETTER MODEL NOW.

BUT IT IS GOING TO GROW.

WE CAN'T BELIEVE HOW MANY ARE GETTING TO THIS.

MOST PEOPLE LOOK A FINANCIAL OFFICER AND SAY JOHN, WHY DO YOU AGREE WITH THIS, YOU KNOW, YOU'RE WAIVING THE TUITION.

I KNOW I GET MY MONEY FROM TATE APPROPRIATIONS APPROPRIATIONS.

I KNOW THIS IS MOST SUFFICIENT WAY OF GETTING STUDENTS TO GET A DEGREE.

IF YOU HAVE AN 18-YEAR-OLD GETTING A DIPLOMA AND AN ASSOCIATE DEGREE, DEBT FREE, IN TWO YEARS OR FOUR YEARS WHOLE HIGH SCHOOL TEAM, THAT IS DRAMATIC.

SO MANY PEOPLE LOOKING MODEL AND PROMISE IS THE SAME WAY.

YOU KNOW WE'RE GROWING TO PROMISE STUDENTS SAME WAY IN ADDITION.

BUT IT USED TO TAKE US 25 STUDENTS TO COME HERE TO GET ONE DEGREE.

EARLY COLLEGE HIGH SCHOOL STUDENT IT'S 4 TO 1.

>> AND WE'RE INVESTING HOW MUCH BASED ON THE QUESTION MS. S.

ZIMMERMAN ASKED >> WE HAVE LIMITED THE GROWTH SOMEWHAT OF THAT >> SO THAT WE ARE LIMITING THOSE NEW ONES EVEN THOUGH THERE'S A LOT DEMAND THAT'S TOTAL?

755 >> PER SCHOOL.

>> SO THIS YEAR 43 SCHOOLS OR ROUGHLY 40 SCHOOLS, SO WHERE WE SIT.

SO IT WILL ADD, PROBABLY 7 TO 10 MORE FOR THE UPCOMING YEAR.

GARLAND WOULD LIKE 7 THEMSELVES.

WE'RE WE WILL WORK WITH THEM.

>> THESE ARE STUDENTS THAT ACTUALLY COME TO OUR CAMPUS?

HAS >> YES.

WE HAVE THOSE STUDENTS, YEAH.

>> YEAH.

IF YOU LOOK AT THIS FALL, THE OUT OF THE 10,000 GROWTH, 2500 OF THOSE, A QUARTER CAME DIRECTLY OUT OF EARLY COLLEGE HIGH SCHOOLS.

REST, THE OTHER 7500 WERE FROM OTHER LOCATIONS.

THAT'S NOT, THAT'S NOT BIGGEST DRIVER OF GROWTH.

BUT CERTAINLY REPRESENTS ABOUT 25 PERCENT OF IT.

>> THE INTERESTING THING I'M SORRY GO AHEAD.

>> THERE WAS A TIME IN HISTORY OF DISTRICT IN 1970S WHEN WE TURNED AWAY 3,000 STUDENTS BECAUSE WE DIDN'T HAVE ADEQUATE FACILITIES.

IF WE DO NOTHING TODAY ARE WE AT RISK OF TURNING STUDENTS AWAY AGAIN IN THE

NEXT THREE, FIVE TEN YEARS >> YES.

WE'RE PROBABLY DOING IT NOW.

I MEAN THE DEMAND OUT THERE PARTICULARLY WITH PARTNERSHIPS WITH SCHOOLS EXCEEDS OUR CAPACITY TO DO IT.

IT EXCEEDS IT BOTH FACILITIES-WISE AND EXCEEDS FRANKLY BUDGET-WISE AS WELL.

IN SPACE NEEDS HAVE BEEN ONE THE THINGS WE DIDN'T REALIZE JUST EXACTLY HOW MUCH SPACE WE NEEDED.

ONE EARLY COLLEGE HIGH SCHOOL NOT INCLUDING INSTRUCTIONAL SPACE OVERHEAD SPACE THEY ONLY NEED 3500 SQUARE FEED.

THERE'S NURSES, CAFETERIA SPACE, THERE'S ADMINISTRATIVE SPACE.

OFFICES.

WE GET THEM TO SHARE A LOT OF THOSE, BUT WHEN YOU'VE GOT TWO HIGH SCHOOLS IN ONE COLLEGE, THEY OR NOT BE REALLY WILLING TO SHARE SOME OF THOSE SPACES.

>> OUT OF GROWTH ALMOST ALL OF THEM ARE TAKING SOME SIDE BASED CLASSES.

[00:25:20]

BUT THEY ARE ALSO 40 PERCENT TAKING SOME ONLINE CLASSES.

>> BUT WE DO HAVE SOME STUDENTS THAT DON'T LIVE IN DALLAS COUNTY THAT ARE TAKEN ONLINE CLASSES.

>> THEY ARE TAKING CLASSES.

NOT MANY OF THEM ARE GETTING DEGREES FROM US.

BUT THEY ARE TAKING CLASSES FROM US.

>> WHICH REMINDS ME, I ASKED SOME TIME BACK IN THE FALL, MAYBE BACK IN THE SUMMER, THAT WE GET A BRIEFING ON WHERE WE ARE WITH OUR ONLINE CLASSES, ENROLLMENT AND SO

FORTH >> AND WE NEED TO DO THAT OVER THE ALL ALL THE WAY AROUND >> WE HAVEN'T

GOTTEN IT >> I THINK WE'RE TRYING TO SCHEDULE SOMETHING OUT TO DO THAT COMING UP.

AND ALSO, TALK ABOUT WHAT'S HAPPENING WITH THE 8-WEEK CLASSES AND DIFFERENT,

DIFFERENT MODALITIES THAT WE'RE USING TODAY >> IN CONJUNCTION WITH THIS CONVERSATION THOSE OF US THAT WERE HERE IN 2014 AND HAD OUR FIRST STRATEGIC PLANNING SESSION WITH CHANCELLOR IF YOU REMEMBER WE SAID WE WANT AN INCREASE IN DUAL CREDIT.

AND THIS CERTAINLY EXCEEDED WHAT WE SAID WE WANTED THROUGH THE DEVELOPMENT OF ALL OF THESE EARLY COLLEGE HIGH SCHOOLS I ALSO REMEMBER, THE FRUSTRATION WHEN GARLAND, ESPECIALLY JERRY, WHEN GARLAND WOULDN'T LET US IN TO OFFER DUAL CREDITS NOW THEY ARE COMING WALKING ON ALL OF THEIR HIGH SCHOOLS TO HAVE AN EARLY COLLEGE HIGH SCHOOL, CORRECT?

>> WE HAD A LENGTHY PHONE CALL WITH SUPERINTENDENT THIS WEEK AT GARLAND TO >> I KNOW WHEN WE FIRST STARTED THOSE EARLY COLLEGE HIGH SCHOOLS WE WERE THEY WERE GRANT FUNDED.

ARE WE STILL GETTING ANY GRANT FUNDING >> WE'VE NEVER HAD GRAND FUNDS US -- >>

INAUDIBLE ] >> SCHOOL DISTRICTS GET SOME DOLLARS THROUGH GRANTS.

SO WE'VE NEVER RECEIVED ANYTHING FROM LIKE THAT.

>> I THINK THERES SOME EQUIPMENT GRANTS THEY'VE ABLE TO DO.

>> CORRECT ME IF I'M WRONG, WHEN WE FIRST START MICROSOFT PROVIDED >> I THINK IT WAS BILL GATES FOUNDATION OR ONES THAT STARTED THIS CONCEPT, RIGHT?

>> THAT IS CORRECT.

AND WE HAD A PILOT GRANT THAT UNIVERSITY OF NORTH TEXAS SERVED INTERMEDIARY FOR TWO OR THREE EARLY COLLEGE HIGH SCHOOLS JUST TO GET THE MODEL IN PLACE AND

CAME YOU THREW A PARTNER >> BUT THAT WAS GRANT FUNDING GRANT FUNDING FROM THEM TO GET MODEL IN PLACE THAT HASN'T HAPPENED SINCE.

>> JUST SEED MONEY IN OTHER WORDS >> WE, PILOT MONEY, PROTOTYPE MONEY >> VERY GOOD.

ANY OTHER COMMENTS ON THIS PARTICULAR VANE?

>> ONE THING I'VE HEARD TODAY THAT JUST BOTHERS ME CONCERNS ME IS SOMEWHAT MAKES ME MAD, AND THAT IS TEMPORARIES.

THAT AS ALWAYS BEEN A CUSHION FOR US THEY GO UP THEY ARE THERE.

>> I'M WITH YOU.

I SHARE >> I DON'T KNOW WHAT TO DO ABOUT IT.

>> WELL ONE IS AT LEAST RECENTLY EASTFIELD HAD TO DO SOME REMODELING.

AT THAT TIME THE PRESIDENT DR. CONWAY CALLED ME SHE SAID JOHN I'M GOING TO NEED SOME SWING SPACE AS WE DO THIS REMODELING.

I KNOW HOW BOARD FEELS ABOUT A PORTABLE BUILDINGS WHAT DO WE DO >> I SAID WELL JEAN MY FEELING IS WE WILL LEASE THEM YOU HAVE DECISION POINT YOU HAVE TO MAKE AT THE END OF OF THE LEASE PERIOD.

YOU DO DO BUY THEM THEY COME IN TO STAY.

I THINK THERE CAMPUS HERE WILLING TO SAY PART OF WHAT THEY ARE TRYING TO DO GET RID OF PORTABLE BUILDINGS THEY BOUGHT.

CAN I MINIMIZE THAT EFFECT? NO.

BECAUSE, WELL JUST LIKE THIS, THE GROWTH OF THIS, THESE PROGRAMS, THIS HAPPENED FASTER.

YOU CAN'T WAIT UNTIL 2020 TO ISSUE SOME BONDS TO TAKE CARE OF THE NEEDS THAT WE HAVE TODAY.

IT HAS HAPPENED THAT FAST.

HAPPENED BOUND OR EXPECTATIONS.

WE WILL ALSO NEED SOME SWING SPACE WHEN WE HAVE TO DO SOME REMODELING THAT'S IN THESE PLANS.

BUT >> THAT'S A GOOD POINT >> IT IS.

BUT I WILL MAKE THE STATEMENT I WILL, I WILL BELIEVE THIS SOMETHING THAT THE BOARD CAN TELL US TO DO DON'T PLAN ON KEEPING THEM.

MAKE SURE YOU HAVE A WAY OF GETTING RID OF THEM I AGREE WITH THAT STATEMENT WHOLEHEARTEDLY.

THE BOARD AS WE COME THROUGH WITH THESE ISSUES AND SAY, I NEED THIS BUILDING I'M GOING TO GET RID OF THESE PORTABLE BUILDING I NEED THEM RIGHT NOW WHILE I DO THE RENOVATION.

WE HAVE TO BRING THAT FORWARD TO YOU.

I'M NOT A FAN OF THEM EITHER.

THEY ARE A NECESSARY EVIL SOMETIMES BUT YOU DON'T WANT THEM PERMANENT.

>> I HAD TO GO THROUGH FIFTH AND 6 THE GRADE IN A PORTABLE BUILDING >>

[00:30:02]

INAUDIBLE ] >> WANT TO GO ON RECORD GIVE US A WAY OUT OF THOSE PORTABLE BUILDINGS ONCE THEY ARE LEASED?

>> YES.

>> I KNOW YOU ALL KNOW THESE BY HEART I FEEL LIKE WE SHOULD STAND PUT OUR HANDS OVER OUR HEART, BUT THE PROJECT LIST THAT IS REALLY BEEN DRIVEN AND BASICALLY EVERYTHING THAT'S ON THIS BOND AUTHORIZATION PROJECT LIST BASICALLY NEEDS EVERY ONE OF THESE.

BUCKY IN HERE OF WHAT WE'RE TRYING TO DO WITH A LOT OF THESE IS HIGHLIGHTING ON IMPACTING THE INCOME DISPARITY IN DALLAS.

AND SERVING AS PRIMARY PROVIDER IN THE TALENT SUPPLY CHAIN.

IF I CAN SUM IT UP INTO TWO THINGS, THAT'S REALLY WHAT WE'RE TRYING TO DO IS MAKE THE IMPACT ON THE ECONOMY HERE OF MAKING DALLAS VIBRANT, AND HEALTHY.

SO WE KIND OF GROUPED THESE INTO THREE BUCKETS THAT WE'LL TALK ABOUT.

THE FIRST IS WAS WE CALL THE DOWNTOWN EDUCATION INNOVATION COMPLEX.

WE HAD PRIORITY LIST, $535 MILLION OF THAT THAT INCLUDES COMPLETELY REDESIGNED EL CENTRO CAMPUS.

IN FACT WE'RE STARTING TO A WORK WITH EL CENTRO LEADERSHIP RIGHT NOW ON WHAT DOES THAT MEAN AND WHAT ARE WE GOING TO DO.

WHAT WE DON'T WANT TO DO IS PICK UP WHAT WE'VE GOT AND MOVE IT OVER.

THEY USED TO CALL THAT PUTTING A $100 SADDLE ON $10 HOUSE.

>> WHAT WE WANT TO DO IS COMPLETELY LOOK AT WHAT WE WE NEED DOWNTOWN.

HOW DO WE SPEFSH SERVE THE NEEDS OF EMPLOYERS AND COMMUNITIES AND STUDENTS DOWNTOWN.

ALSO THAT INNOVATION CENTER HOW DO WE HELP WITH DEVELOPING SMALL BUSINESSES DOWNTOWN.

YOU KNOW, A LOT OF THIS CAME OUT AMAZON U OR AMAZON IDEA WHEN THEY DECIDED NOT TO COME HERE I THINK I MADE THE COMMENT GIVE ME 100 SMALL BUSINESSES THAT WILL HAVE 100 EMPLOYEES IN NEXT TEN YEARS, I'LL TAKE THOSE.

BECAUSE THAT IS MORE THE HELP OF WHAT WE NEED IN THIS ECONOMY IS WE NEED AMERICAN AIRLINES AND STATE AND AT&T WE ALSO NEED THAT HEALTHY SMALL BUSINESSES THAT ARE GROWING IN THE OSTEO.

THE INNOVATION?

HAS TO BE PART OF THAT WHERE ENTREPRENEURS CAN COME TRY THAT >> WE REALIZE THAT WE HAVE VERY LIMITED IMPACT IN TRAINING.

THE WORK FORCE THAT ARE EMPLOYED MAJOR EMPLOYERS AND SMALLER EMPLOYERS HAVE IN THE CITY.

SO THAT'S THE IDEA OF BEHIND THE DOWNTOWN CAMPUS.

IT'S PROBABLY ONE OF THE THINGS I THINK YOU ALL PROBABLY READ THE OP ED THAT WAS IN DALLAS MORNING NEWS, THAT SAID WELL THEY DIDN'T COME.

BUT WHY DON'T THEY GO AHEAD AND ANYWAY.

NOT JUST US, IT'S US, UNIVERSITY PARTNERS, IT'S REALLY BRINGING THE WHOLE IDEA TOGETHER.

AND IF I CAN SAY THIS, WE DON'T KNOW HOW THIS IS GOING TO HAPPEN.

BUT WHAT WE KIND OF ARE ENVISIONING SOMEBODY WILL TAKE THE LEAD AND BASICALLY COME UP WITH A WAY OF DEVELOPING A MASTER PLAN CONCEPT.

WE'D BE PART OF THAT.

WE'D BUY OUR BUILDING PART.

UNIVERSITY OF NORTH TEXAS AT DALLAS, WHOEVER, YOU KNOW, OUR UNIVERSITY PARTNERS THEY GO IN THERE AND WHOLE COMPLEX WOULD BECOME THAT VIBRANT AREA OF DOWNTOWN EDUCATION AND INNOVATION COMPLEX.

AND I WOULD SAY, WE'RE OBVIOUSLY ONLY TALKING ABOUT EL CENTRO.

AND WE'RE NOT TALKING ABOUT BEING THE LEAD IN THAT.

THAT'S ANOTHER, THAT A CHAMBER AND MAYORS OFFICE AND OTHER THAT IS THERE.

WE KNOW, WE HAD A MEETING YESTERDAY WITH THE CHANCELLOR OF THE UNIVERSITY OF NORTH TEXAS SYSTEM THAT WANTS TO BE PART OF THIS.

WE MET WITH FROM ISD THAT WANTS TO BE A PART OF THIS.

BUT, THAT'S UP TO THEM NOT US.

WHAT WE'RE REALLY ADDRESSING ARE THE NEEDS OF THE DISTRICT.

OUR FACILITIES RIGHT NOW.

WE THINK THERE WOULD VALUE ADDED IF OTHER PEOPLE WOULD BUILD INTO A DISTRICT AND MAKE THAT HAPPEN.

BUT, REGARDLESS OF WHETHER THAT OCCURS OR NOT, WE'VE GOT ANTIQUATED FACILITY THAT INADEQUATE FOR THE NEEDS OF THE STUDENTS THAT WE'RE SERVING IN THE CURRENT STRUCTURE OF EL CENTRO.

IT'S NOT POSSIBLE TO REALLY REDO THOSE FACILITIES TO GET THEM TO THE POINT THAT THEY WOULD MEET THE NEEDS OF STUDENTS.

>> HAVE YOU GO AHEAD.

>> SO THIS IS DOWNTOWN EDUCATION AND INNOVATION COMPLEX.

IT'S MADE UP OF THESE THREE BULLET POINTS.

[00:35:04]

OKAY.

ARE YOU TALKING ABOUT A NEW BUILDING AS AN INNOVATION CENTER?

>> I HAVEN'T DESIGNED IT YET.

BASICALLY USE SQUARE FOOTAGES TO DETERMINE COST, AND HOW IT ENDS UPCOMING DOWN WE HAVEN'T GOTTEN TO POINT OF HIRING AN ARCHITECT TO WORK WITH US ON DESIGN.

SO I CAN'T REALLY ANSWER THAT QUESTION.

>> OKAY.

NOT EVEN ON ADMINISTRATION AND THE BUSINESS TRAINING CENTER?

>> UH-HUH >> IS THAT ONE THING ONE BUILDING?

THOSE TWO THINGS >> IT COULD BE ONE IT COULD BE ALL ONE FACILITY IT COULD TWO OR THREE.

>> YOU DON'T KNOW >> BUT REALLY GOING TO DETERMINED AS WE GET INTO THE COST STRUCTURE WHAT WE NEED TO DO THERE.

>> ISN'T THAT A BIT CONCERNING THOUGH BECAUSE BOND ELECTION FOR GARLAND INDEPENDENT SCHOOL DISTRICT, THERE WAS SUPPOSED TO BE $20 MILLION IN THE TORE UM PUT TOGETHER.

EVERYBODY WANTED IN THE TORE UM.

YOU HAD TO HAVE IN THE TORE UM I KNOW OUT DISTRICT GAVE AWAY OUR IN THE THEY WERE GOING TO DO THE THAT THEY NEVER PUT PEN TO PAPER TO KNOW WHAT THE NATITORIUM WAS EVEN GOING TO COST.

>> WE KNOW WHAT THIS GOING TO A EVEN GOING TO COST.

>> WE KNOW WHAT THIS GOING TO COST.

>> BUILDING COST PER FOOT THAT IS HOW YOU CAME UP WITH THAT ESTIMATE?

>> YES.

YES.

AND YOU'RE RIGHT.

IN THE VARIABLE IN THERE, COSTS GO UP COSTS GO DOWN.

WHAT DO YOU KEEP TO THIS? WHAT WE'RE ASKING THE BOARD FOR IS THIS AUTHORIZATION ON THESE PROJECTS BASED ON YOU ALWAYS ARE DOING AN ESTIMATED AMOUNT WHEN YOU DO A BOND AUTHORIZATION.

THAT'S WHAT YOU NEED TO UK TALK ABOUT THIS PLEASE DO.

UNTIL YOU GET TO THE POINT OF GETTING READY TO ISSUE THE BOND, AND THEN BY THAT TIME, HOPEFULLY ONE OF THE WAYS TO DO THIS IS GET ARCHITECT EMPLOYEED AND GET DESIGN ESTIMATES WHEN YOU'VE GOT ARCHITECT EMPLOYED.

EVEN WITH THE MASTER PLANS.

THEY ARE ALL ESTIMATED AMOUNTS THAT WE HAVE IN THERE.

SO OUR ARCHITECT WHEN WE HIRE OUR ARCHITECT, HE'S GOING TO BE >> FOR THAT SPECIFIC PROJECT THEN WE CAN GET A FINALIZED AMOUNT.

YOU CAN'T DO THAT UNTIL YOU ISSUE BONDS >> WHAT DOES OUR AROUND TEXT SAY?

WE DON'T HAVE ONE FOR THIS PROJECT >> YEAH.

OKAY.

>> AND YOU DON'T, WE DON'T HAVE THE MONEY TO HIRE THE ARCHITECT.

>> WE'LL HAVE TO BID THAT AND GO >> SO WHAT HAPPENS TO CLYDE'S POSITION?

>> CLYDE WAS A MANAGER.

HE HELPED WITH DETERMINING WHICH ARCHITECTS WERE BEST SUITED FOR THAT.

WE'VE ALWAYS HIRED ARCHITECTS.

>> OKAY.

>> WE DON'T THE WORK IN HOUSE OUR SELF.

HE WAS THAT KNOWLEDGE BASE >> THANK YOU.

>> THAT SAID >> GOOD TERM >> THIS IS GOOD ARCHITECT TO DO THIS PROJECT.

I RECOMMEND THAT WE USE THIS ARCHITECT.

>> SO WE'RE PUTTING CART BEFORE THE HORSE, BECAUSE AT THIS POINT WE DON'T HAVE THE IN HOUSE KNOWLEDGE OF WHO WE SHOULD EVEN BE TALKING TO?

>> WELL JEFF MAY HAVE TO HELP ME HERE.

BUT AT THIS POINT, WE CAN'T WE WILL HAVE IN-HOUSE KNOWLEDGE BY TIME WE GET TO ROUND TO ISSUING BONDS.

BUT AT THESE POINTS THESE PLANS WERE DEVELOPED FROM COLLEGING MASTER PLAN ARCHITECTS THAT MADE ESTIMATES BASED ON WHAT THEY DID.

YOU DON'T HAVE A FINALIZED AMOUNT UNTIL ACTUALLY HIRE THE ARCHITECT FOR THAT SPECIFIC PROJECT.

BUT NOT CART BEFORE HORSE YOU CAN'T HIRE ARCHITECT UNTIL YOU AUTHORIZED BOND SH HAVE ELECTION AND ISSUE THE BONDS TO START BEING ABLE TO EMPLOY ARCHITECT TO BE ABLE

TO DO THE PROJECT >> I'M CONCERNED WITHOUT IN-HOUSE TALENT-- WE'RE LOOKING A DOING ALL SORTS OF WONDERFUL STUFF ALL OVER EVERYWHERE AND WE DON'T HAVE THE IN-HOUSE TALENT THAT WE USED TO HAVE.

OR DID HE JUST NOT DO HE DIDN'T REALLY DO ANYTHING?

>> I THINK ONE, WE HAVE STARTED USING SOME EXTERNAL HELP IN THAT WE USED PROJECT MANAGERS TO HELP US WITH SOME OF THESE THINGS.

BUT AT THIS POINT IN TIME, WHAT YOU HAVE TO LOOK AT IS THIS AUTHORIZATION LIST HAS COME FROM MASTER PLAN ARCHITECTS THAT CLYDE HELPED PICK OUT FOR ALL COLLEGES AND COLLEGES HELPED TOO.

THEY HAVE GONE THROUGH AND LOOKED AT THOSE NEEDS AND SAID, HERE'S WAS WE BELIEVE THAT WILL COST.

AND WE HAVE CONSOLIDATED THAT LIST AND COME UP WITH THESE AMOUNTS.

BUT WE DID NOT HIRE MASTER PLAN ARCHITECTS TO DO DETAILED DESIGN OF EACH

[00:40:02]

INDIVIDUAL PROJECTSES.

AND THAT'S WHERE I THINK YOU'RE GETTING >> OUR IN-HOUSE TALENT -- >> CLYDE DIDN'T COME UP WITH THE AMOUNTS.

ARCHITECTS DID.

ARCHITECTS HE HIRED >> RIGHT THAT HE HIRED.

>> YEAH.

MS. ZIMMERMAN WE WILL HAVE TO MOVE ON IF YOU WANT TO GO OFF-LINE WITH THAT YOU'RE NOT SATISFIED YOU'VE GOT RESPONSE PLEASE OFF-LINE BECAUSE WE HAVE GOT TRUSTEE RITTER AND THEN TRUSTEE JAMESON AND TRUSTEE COMPTON.

>> I MEAN THIS IS ABOUT A NEW EL CENTRO WHICH WOULD NOT BE ON CURRENT FOOTPRINT I PRESUME.

BUT ALSO GOING TO, YOU KNOW, AFFECT THIS BUILDING.

CAN YOU TALK A LITTLE BIT ABOUT THAT AND OTHER DOLLARS THAT WOULD REALIZED FROM

VACATING OH ARE SELLING THOSE FACILITIES IF THEY'VE NETTED OUT TOTAL COST OF >>

NO, THEY HAVE NOT >> AND PART OF THE REASON IS AND WE HAVE TO GET OUT BUILDING TO MAKE A DECISION TO DO THAT.

I THINK THAT'S A FUTURE BOARD DECISION OF WHAT IS THE PROPER UTILIZATION OR DISPOSAL OF THOSE ASSETS.

AND RIGHT NOW, WHAT WE'VE HAD IS WE'VE COLLIER'S DO A MARKET ANALYSIS IN ALL DOWNTOWN BUILDING WE WOULD VACATED SOMEWHERE AROUND 75 TO $125 MILLION VALUE.

WHAT IT WILL BE TWO YEARS FROM NOW, THREE YEARS FROM HOW NOW WHEN WE CAN VACATE THE SPACE I CAN'T MAKE THAT PROJECTION.

BUT THERE IS SOMETHING, BUT YOU, WE DON'T KNOW WHAT THIS BOARD WILL WANT TO DO WITH THOSE FACILITIES WHEN WE VACATE THEM.

AND HOW WE DO IT.

I THINK, QUITE FRANKLY WHAT WE BUILT INTO THIS IS THAT'S A FUTURE BOARD DECISION.

BECAUSE THERE WILL BE MORE OPTIONS AT THE TIME WILL BE SMARTER ABOUT WHAT'S AVAILABLE AND HAVE BETTER INFORMATION TO MAKE DECISIONS FROM.

IF YOU MAKE IT NOW, AND WE TIE THAT INTO IT, THEN WE DON'T, THEN WE CAN'T SELL IT, MARKET CRASHES, REAL ESTATE DOWNTOWN IS NOT SELLING.

WE'RE BETTING ON OF COME TO A FINISH A PROJECT WE HAVEN'T BUILT TAX CREDITS INTO THIS.

WE PLAN TO DO ALL OF THAT AUTHORIZATION AGAIN I'M LET BOND COUNSEL TALK ABOUT AUTHORIZATION ISSUANCE IS A TWO-STEP PROCESS.

FIRST TRYING TO DECIDE WHAT MAKES SENSE TO AUTHORIZE.

THAT'S WHAT WE'RE ASKING YOU ALL TODAY.

WHAT WE ACTUALLY ISSUE IS--

WHEN WE GET TO THE >> SAY THAT AGAIN WHAT WE ACTUALLY ISSUE IS WHAT?

>> I'M SORRY?

>> I DIDN'T UNDERSTAND THE LAST PART OF THAT SENTENCE.

WHAT WE ACTUALLY ISSUE IS WHAT?

>> WILL BE THE AMOUNT OF THE BONDS AT A FUTURE DATE.

JEFF TALK A LITTLE BIT ABOUT THAT.

>> BASICALLY, WHAT THE ELECTION DOES IS IT AUTHORIZES THIS BOARD TO MAKE A FUTURE DECISION.

THAT FUTURE DECISION IS OUT OF THE AMOUNT OF BONDS THAT WERE APPROVED BY THE VOTERS, WHEN TO ISSUE THEM, AND WHAT AMOUNTS TO ISSUE THEM.

A WHAT INTT RATES TO ISSUE THEM AT.

SO THE FACT YOU HAVE BOND ELECTION THAT CARRIES DOESN'T FORCE YOU TO EVER ISSUE A BOND.

YOU CAN DECIDE WE'RE GOING TO IGNORE WHAT VOTERS TELL US AND AT YOUR PERIL PERHAPS.

BUT YOU CAN DO THAT WHAT YOU DO IS PRESENTED BY STAFF AND FINANCIAL ADVISORS WHAT AMOUNT OF BONDS YOU WILL ISSUE AND YOU'RE AUTHORIZED THEN TO DETERMINE WHAT INTEREST RATES AND IDENTIFY PROJECTS THAT WOULD BE FUNDED.

YOU'RE GOING TO HAVE TO GO THROUGH THAT ANYWAY BECAUSE YOU HAVE TO HAVE AUTHORITY TO CONTRACTS AND GOES BACK TO THE QUESTION THAT YOU HAVE ABOUT WHY HAVEN'T WE HIRED AN ARCHITECT.

WE HAVEN'T APPROVED PROJECT.

I DON'T THINK GENERAL COUNSEL WILL AN ALLOW YOU TO SPEND MONEY ON SOMETHING THAT HASN'T APPROVED BY BOARD.

THAT WHAT YOU'RE AT IN THIS WHOLE PROCEDURE.

PRESENTING TO VOTERS THE QUESTION OF WHETHER YOU ARE AUTHORIZED BY BOARD TO ISSUE BONDS IN FUTURE.

IF THEY SAY YES THEN IN THE FUTURE, THE BOARD CAN MEET, WILL MEET, NEEDS TO MEET, TO AUTHORIZE THE ACTUAL SALE OF THE BONDS.

DOES THAT ANSWER YOUR QUESTION?

>> SAME PROCEDURE, Y'ALL WE ARE HERE IN 2004.

NO DIFFERENT THAN WHAT WE WERE DOING IN 2004.

>> AND THE WAY THAT WE MANAGED WE ARE MOVING TOWARD A SEPARATE CAPITAL BUDGET IN TERMS OF ANNUAL BUDGETING PROCESS, CORRECT? AND SO BOARD AND VOTERS AUTHORIZE THIS, THAT AUTHOR SIZATION WILL BE MANAGED ON AN ANNUAL BASIS ON A PROJECT BY PROJECT BASIS THROUGH THAT CAPITAL BUDGETING PROCESS, CORRECT?

>> CORRECT.

>> AND IN THE YEARS AHEAD, IF REALIZE GAIN FROM AN OTHER PROPERTY ASSETS LIKE EL CENTRO LIKE THIS BUILDING, THAT WOULD ALL BE CONTEMPLATED IN CAPITAL

[00:45:03]

BUDGET AND MAY IN FUTURE REDUCE THE AMOUNT OF BONDS THAT WE WOULD HAVE TO ISSUE TO REALIZE THE VISION BEHIND THIS PROJECT IS THAT RIGHT WAY TO THINK ABOUT IT?

>> YES.

>> WE'RE HAVING A REAL ROBUST DISCUSSION WHICH IS GOOD.

AND THANKS TRUSTEE COMPTON FOR SUGGESTING THAT TO MAKE SURE I GET YOUR ATTENTION, TO RAISE YOUR CARD IF YOU HAVE QUESTION.

BECAUSE EASIER TO SEE THIS THAN SOMETIMES A HAND UP.

>> I'M TRYING TO BUTT IN INTERRUPT.

>> SO ANYWAY TRUSTEE JAMESON YOU PATIENTLY WAITED >> BASED ON ESTIMATES FROM A MASTER PLAN WAY YOU COME UP WITH THESE DOLLARS WOULD YOU SAY $535 MILLION IS HIGH END

MIDDLE END >> MIDDLE >> SO THAT IS THAT $1.1 MILLION, HALF HALF A BILLION HALF THE

MONEY IS WITHIN THIS PARTICULAR COMPLEX >> YES.

AND PROBABLY ONE OF THE I THINK THERE'S TWO DRIVING FORCES BEHIND OUR POPULARITY IN THE COMMUNITY RIGHT NOW.

ONE IS ALL THE THINGS WE'RE DOING WITH EARLY COLLEGE HIGH SCHOOLS AND PROMISE AND EVERYTHING ELSE THAT WE'RE DOING.

BUT ALSO, THE LEADERSHIP ROLE WE'RE TAKING IN THAT DOWNTOWN CAMPUS.

BECAUSE THERE'S A LOT OF PEOPLE THAT REALIZE WE'RE NOT GOING TO ATTRACT ANYBODY, REALLY NOT GOING TO CHANGE THE DOWNTOWN IF WE CAN'T BE THE PIPELINE OF MOVING FUTURE EMPLOYEES THROUGH THE SYSTEM.

WE NEED THAT TO BE PART OF THE DALLAS ECONOMY IN DOWNTOWN.

BESIDES OUR CAMPUSES THAT WE HAVE EVERYWHERE ELSE.

>> THANK YOU.

>> TRUSTEE COMPTON DID YOU STILL HAVE A QUESTION?

>> OH.

WHEN YOU WERE TALKING ABOUT THE FACILITIES, AND YOU WERE GOING TO TAKE IT OFF-LINE, WHAT I WAS GOING TO SAY, BECAUSE THERE IS SOME IMPLICATIONS IN STATE LAW AND FACILITIES, IT'S NOT NECESSARILY LIMITED TO WHAT, BUT I THINK EVERYBODY NEEDS TO UNDERSTAND WHAT THOSE ARE.

SO I AGREE IT NEEDS TO BE A SEPARATE DISCUSSION.

BUT I WOULD SAY GIVEN WHERE WE ARE NOW, IT NEEDS TO BE SOONER RATHER THAN LATER.

>> TRUSTEE COMP TON AND TRUSTEE ZIMMERMAN COULD YOU PLEASE LET MR. ROBERTSON AND QUESTIONS AND CONCERNS ARE.

TRUE TEE COMPTON IN REGARDS TO STATE LAW AND PLEASE DO A SUMMARY DOCUMENT AND SHARE IT WITH THE BOARD.

WOULD THAT BE SUFFICIENT?

>> I PROBABLY LIKE NEED ROB'S HELP ON THAT I MIGHT NEED SOME OF LADIES AND GENTLEMEN'S HELP ON SOME OF THAT.

SO WE WILL PULL SOME OF THAT TOGETHER.

PROBABLE SOMETHING WE COULD DO A FUTURE DATE GIVEN SOME COMFORT LEVEL.

BUT YOU KNOW WHERE WE'RE GOING THROUGH THIS, LET ME GONE TO THE NEXT WHERE WE ARE IN MAJOR BUCKETS.

WE HAVE $332 MILLION THAT WE'RE LOOKING AT WHAT WE CALL THE IN THE STUDENT NEEDS.

THAT'S EARLY COLLEGE HIGH SCHOOL AND PROMISE PROGRAMS. THOSE HAVE GROWN DRAMATICALLY, FASTER THAN WHAT WE EXPECTED.

WE WILL PROBABLY EXPECT TO ADD AT LEAST JOE AND I HAVE TWO DIFFERENT NUMBERS HIS VERY OPTIMISTIC I'M MORE CONSERVATIVE.

BUT I KNOW WE'LL HAVE ADD AT LEAST ANOTHER 12 NOUSHGS STUDENTS OVER NEXT THREE TO FIVE YEARS.

IT COULD DOUBLE THAT, IT COULD BE TRIPLE THAT.

THESE THINGS ARE GOING SO FAST.

IT HART TO GET IT THAT'S WHY WE NEED THIS ANNUAL BUDGETING PROCESS AND THIS ANNUAL REVIEW PROCESS FOR EVERYTHING OF KNOWING WHAT WE'RE DOING.

BUT THESE THINGS JUST DO SO MUCH TO IMPROVING DEGREES AND SKIPPING THE NO STUDENT DEBT WHICH IS WHAT WE'RE TRYING TO ACCOMPLISH IN 60 BY 30.

WE'RE GOING TO PROBABLY SEE SLOW DOWN IN THE DUAL CRITICIZED OF THAT.

BUT BIG INCREASE OF THOSE COMING OUT HIGH SCHOOL.

AND REAL GROWTH GRADUATED FROM HIGH SCHOOL AND IN ENROLL IN THIS, SIGNIFICANT.

>> INTERESTING POINT I FOUND, YOU KNOW, IN 2004, WE AUTHORIZED A 450 MILLION WE MADE THE LAST BOND ISSUE ON PROJECTS IN 2010.

SINCE THAT 2010, WE HAVE HAD 12.7 PERCENT ENROLLMENT GROWTH.

THAT'S ALMOST 15,000 STUDENTS.

SO YOU WONDER WHERE WE'RE PUTTING PEOPLE.

AND NOW, JUST RECENTLY, IN THE LAST TWO TO THREE YEARS WE'VE ADDED ENROLLMENT GROWTH THAT WE'RE SEEING PROJECTING IN EARLY COLLEGE HIGH SCHOOLS AND PROMISE.

IT IS HUGE.

THIS IS 332 MILLION WOULD SPENT ON OTHER SIX CAMPUS BESIDES EL CENTRO, RIGHT?

>> THAT'S ALMOST AS BIG AS LAST BOND PACKAGE >> THERE IS A LITTLE AMOUNT IN THERE FOR WEST CAMP FOR EL CENTRO.

THEIR BIG CHUNK IS DOWNTOWN CAMPUS.

>> THANK YOU.

>> AND WE KNOW WE HAVE INSTRUCTIONAL SPACES THAT WERE BUILT 50 YEARS AGO THAT DON'T MEET LEARNING STYLES UP TO DATE.

LET HE KNOW STUDENTS NEED COLLABORATIVE LEARNING SPACES HOW DO WE DO THAT LIBRARIES ARE MY FAVORITE USED TO BE STACKS AND RACKS.

AND NOW IT'S SMALL MEETING ROOMS, LARGE MEETING ROOMS. WHERE DO STUDENTS GET TOGETHER HOW DO THEY HAVE CUBICLES TO WORK ON THEIR ASSIGNMENTS AND SO ON ON.

JUST TOTALLY DIFFERENT THAN WHERE WE WERE 40 TO 50 YEARS AGO.

WE NODE WE NEED TO BE ALIGNED.

WE HAVE $235 MILLION IN HERE.

THERE'S NEW NURSING BUILDING, MOUNTAIN VIEW.

WE'RE TALKING ABOUT A CULINARY PROGRAM WITH EL CENTRO THAT GOING TO OPERATED UP AT BROOKHAVEN.

A SXRUGSAL TRADES BUILDING A VERY POSSIBLY A CONSTRUCTION TRADE BUILDING WHICH IN BUDGET IN HERE AND NEEDS TO BE ONE ON SOUTH SIDE.

WE KNOW WE HAD SEVERAL REQUESTS FOR ADVANCED MANUFACTURING BUILDINGS.

PROBABLY ONE BIGGEST THINGS FOR EL CENTRO DOWNTOWN IS TECHNOLOGY.

TECHNOLOGY IS GROWING AND WE DON'T HAVE THE PIPELINE FOR WHAT AMAZON, AT&T OTHER LARGE PEOPLE TECHNOLOGY IN EVERYTHING WE DO.

AND THAT WHETHER IT'S EVERYTHING FROM THE ARTIFICIAL INTELLIGENCE TO JUST GETTING PEOPLE WITH THE DEGREE Z CERTIFICATES THEY NEED TO DO THE JOBS THAT THEY ARE QUALIFIED FOR OR WANT TO MOVE FORWARD IN TECHNOLOGY.

WE NEED TO BE DOING THE BUSINESS DEVELOPMENT CORPORATE TRAINING.

AND WE'RE DEVELOPING A BROOKHAVEN EARLY CHILDHOOD EDUCATION.

>> WE HAD ALSO SAID IN 2014 THAT WE WANTED SPACE FOR CHILD CARE AT OUR COLLEGES BECAUSE THAT'S A HUGE ISSUE.

BUT I DON'T SEE THAT WE'VE CONSIDERED THAT AND IT'S NOT COME ON NIBD'S RADAR.

PART OF WHAT WE LOOKED AT WITH COLLIERS IS THIS IDEA HOW DO WE PARTNER WITH THE COMMUNITIES FOR THESE OTHER SPACES WE MIGHT NEED THAT ALSO SATISFY COMMUNITY NEEDS WHETHER IT'S CHILD CARE, RESTAURANTS, FOOD BANKS.

ALL OF THOSE THINGS WE NEED TO HELP OUR STUDENTS WITH WHAT WE DO.

BUT THOSE ARE NOT SPECIFICALLY IN HERE BECAUSE WE THINK THOSE MIGHT BE HELPED WITH WORKING WITH CITIES, COUNTIES, DEVELOPERS, TO DO THAT ON A BASIS WHERE IT DOES NOT COST THE DISTRICT ANYTHING.

NOT LOOKING TO MAKE A TON OF MONEY HERE.

BUT HOW >> GO AHEAD >> SOME CASES, IN REGARDS TO YOUR SPECIFIC COMMENT ABOUT CHILD CARE IT WAS REALLY ABOUT THE CONNECTING OUR STUDENTS WITH AT SERVICES AND NOT NECESSARILY A BRICK AND MORTAR SOLUTION ON OUR CAMPUS?

>> IN TERMS OF THIS PARTICULAR SLIDE, THIS BRINGS HOME THAT THE PLANS ARE NOT COLLEGE CENTRIC BUT WHERE IN COUNTY DOES IT MAKE THE MOST SENSE TO PLACE LIKE ADVANCED MANUFACTURING, MAYBE THAT'S IN EASTFIELD OR THE GARLAND CAMPUS BECAUSE THEY HAVE A LOT OF ADVANCED MANUFACTURING COMPANIES CONCENTRATED IN THAT AREA, RIGHT?

>> I LIKE THAT CONSTRUCTION TRADES MAY BE SOMETHING SOUTH BECAUSE THAT'S WHERE YOU HAVE ALL OF YOUR WORKERS BUT CONSTRUCTION TRADES BUILDING IS WHAT FAR NORTH?

>> SO WE HAVE GOT TO LOOK AT THESE BECAUSE THESE VERY POSSIBLY NOT SAYING THIS WHOLE LIST, BUT AS WE TALKED ABOUT SIGNATURE PROGRAMS. THESE ARE VERY POSSIBLY THE STARTS OF SOME OF OUR SIGNATURE PROGRAMS.

[00:50:02]

IF WE TRY TO DO IT THE SAME THING, ALL 7 CAMPUSES, WE CAN'T AFFORD THAT FOR THESE SIGNATURE PROGRAMS. I CAN'T AFFORD $50 MILLION CONSTRUCTION TRADE BUILDING AT EVERY SINGLE CAMPUS.

SO WE'VE GOT TO BE STRATEGIC OF WHAT WE DO.

AND REMEMBER, ONE OF THE THINGS WE'VE ALREADY KIND OF TALKED ABOUT A LITTLE BIT IS WE KNOW OUR PROGRAMS ARE INSTRUCTIONAL PROGRAMS WILL FOLLOW INTO THREE GROUPS WITH EDUCATIONAL PLAN DISTRIBUTED, MEANING SOMETHING EVERYBODY NEEDS TO DO.

FOCUSED, VERY SIMILAR TO WHAT WE DO WITH NURSING TODAY.

STRATEGICALLY LOCATED.

AND THEN SIGNATURE.

AND WHAT ARE THOSE SIGNATURE PROGRAMS AND HOW DO WE-- IF WE WANT TO FINE ARTS BUILDING, DON'T WE WANT TO BUILD IT TO BE JULLIARD OF THE SOUTH.

>> I LIKE THIS REINFORCES NETWORK MODEL WE'RE OPERATING UNDER.

IT REALLY SENDS THAT MESSAGE HOME IN HOW THIS IS STRUCTURED.

>> IF I MIGHT, THE PREVIOUS SLIDE I DON'T SEE DENTAL SCHOOL ANYWHERE.

WHERE'S THE DENTAL SCHOOL >> NOT EVERY PROGRAM.

WE HAVE THAT, IT'S CURRENT.

>> BUT WE'RE COMING UP ON THE LEASE, AREN'T WE?

>> BUT WE WILL RENEW THE LEASE FOR TIME BUILDING.

THAT'S PART OF EL CENTRO.

AND THAT WOULD BE IN THE DESIGN OF NEW CAMPUS OF EL CENTRO.

>> EL CENTRO DIDN'T HAVE SPACE IN ORDER TO HOUSE IT ON SITE.

SO IT COULD INCORPORATED INTO THAT FACILITY >> OR IT COULD NOT.

IT COULD, COULD IS SCARY WORD >> IT COULD OR IT WILL?

>> YEAH.

OR WILL.

>> I THINK THOSE PROGRAMMING DECISIONS >> I WOULDN'T SPEAK TO WHAT BOARD WOULD DO

IN FUTURE >> WE TALKED ABOUT THAT.

IN WORKING WITH EL CENTRO AND WE HAVE ALREADY BEEN HAVINGS THESE CONVERSATIONS.

JUST THAT.

WE NEED TO DO THAT FRAMEWORK FON EDUCATION PLAN ON EL CENTRO NOW.

WE DETERMINE WHICH PROGRAMS SHOULD GO IN THERE AND WHETHER WE MAKE THE DECISION.

IT THE IS THE ONLY PLACE THAT WE HAVE ANY DENTAL PROGRAMS. IS THAT IN THAT LEASE SPACE NOW.

PART OF THE DECISION IS DO WE CONTINUE TO HAVE THAT.

BUT WE KNOW I REMEMBER DR. MAY SAYING THIS WE'RE NOT GOING TO PUT DENTAL PROGRAMS AT EVERY COLLEGE.

WE CAN'T AFFORD TO DO IT >> THE IDEA IS THAT WE KNOW WE'RE RUNNING OUT OF TIME ON

THAT LEASE VERY MUCH LIKE NORTH LAKE >> ALREADY BEING RENEGOTIATED.

IT WILL COME TO BOARD AS AN AGENDA ITEM.

>> SO THIS SH THIS SLIDE JUST GOES BACK REINFORCE WHAT WE WERE TALKING ABOUT PLACEMENT OF SOME OF THE IDEAS WE'RE BRINGING FORTH TODAY.

AND ALTHOUGH WE DO DO HAVE RIGHT NOW, SPECIFIC LOCATIONS FOR THESE, WE DO RECOGNIZE THAT WE HAVE SOME EXTERNAL FORCES THAT COULD YOU KNOW, FORCE OUR HAND FOR SOME CHANGES IF WE HAD TO HAVE SOME THINGS MOVE AROUND LIKE DEMOGRAPHICS COULD CHANGE ONE AREA TO NEXT WORK FORCE NEEDS WE CAN CHANGE LIKE WE'RE TALKING ABOUT CONSTRUCTION TRADES.

YOU KNOW WHERE THOSE JOBS HAPPEN TO LAND.

BUT FOR NOW, THIS IS, THIS IS HOW IT LOOKS ON THE MAP IF WE WERE TO TALK ABOUT DISTRIBUTION.

>> BEAUTY OF THIS IS THE NETWORK.

THAT'S WHAT WE'RE LOOKING AT HERE IS WE'VE LOOKED AND WORKED ON THESE PROGRAMS HOW DO WE DO THIS OF MAKING SURE WE'RE COVERING ACROSS THE WHOLE COUNTY, MOST STRATEGIC PRIORITIES TO DO WHAT WE NEED TO DO.

>> ASK REALLY ADDRESS WHERE GAPS ARE TODAY >> YES.

GOOD POINT.

>> A LOT OF THIS WHILE CERTAINLY IS GOING OH HELP US IN THE FUTURE, BUT IT'S REALLY ADDRESSING THE DEFICIENCIES THAT EXIST RIGHT NOW TO A LARGE DEGREE.

>> EASTFIELD COLLEGE I'M NOT UNDERSTANDING THOSE WHO THAT ARE SIMILAR.

THERE ARE NOT CORRESPONDING FOR THAT MIDDLE TRIANGLE ON THE RIGHT.

>> THAT'S A MESS UP I'LL GO UP AND REDO THAT.

WHAT IS SUPPOSED TO BE?

>> >> EC ENROLLMENT GROWTH.

IT IS SUPPOSED TO BE GREEN.

>> I WILL DO THAT BECAUSE I THINK THIS MAP IS IMPORTANT FOR BOARD TO SEE THAT DISTRIBUTION.

SO WE WILL REDO THAT.

>> WHEN WE TALK ABOUT THIS WITH PUBLIC AND SO FORTH, NETWORK INFORMED PLANNING PROCESS, WHICH IS COUNTY-WIDE, CENTRALLY DRIVEN.

THAT'S CLEARLY SOMETHING THAT WE'RE EMPHASIZING HERE SO WE DON'T DUPLICATE THINGS.

AWAY WE CLEARLY IDENTIFY NEEDS THROUGHOUT THE COUNTIES.

BUT, THERE'S ALSO BOTTOMS UP COMPONENT OF THIS WE WERE WORKING ON MASTER PLANS FOR THESE INDIVIDUAL CAMPUS.

THEY ARE ON GROUND ON FRONT LINES.

A LOT OF WHAT THEY HAVE BROUGHT FORWARD IN CAMPUS MASTER PLAN PROCESS WE SAW BACK IN APRIL, INFORMS WHAT YOU'RE BRINGING TO US TODAY.

AND I MEAN THAT'S KIND OF HOW I SEE IT TELL ME IF I'M WRONG.

TOPS DOWN >> THAT'S BEST TYPE PLAN WHEN YOU CAN GET RIGHT BALANCE AND MIX SEEMS LIKE THAT WHAT WE'VE STRIVING FOR WHAT YOU'RE ATTEMPTING TO BRING.

IS THAT RIGHT WAY TO THINK ABOUT IT?

>> I THINK THAT'S THE RIGHT WAY.

OTHER PIECE THAT DOESN'T SHOW UP ON HERE IS THAT WE'RE GOING TO DO OR SO

THOSE CAMPUS IMPROVEMENTS DEFERRED MAINTENANCE >> THEY DO NOT.

>> SO THERE'S, REALLY GOING TO MULTIPLE THINGS GOING ON.

AND, ALL OF THAT PLANNING HAS OCCURRED AND IS BEING TAKEN INTO CONSIDERATION.

BUT THIS IS FOR WHAT WE WANT TO DO THE BONDS ON NOT NECESSARILY INCLUDING EVERYTHING WE WILL GET DONE.

OVER THE NEXT FEW YEARS.

>> THROUGH ANOTHER FUNDING MODEL >> AND WE WILL TALK ABOUT THAT IN A MINUTE TO GIVE YOU PICTURE PICTURE OF WHAT WE'RE TRYING TO DO.

BUT AND NOT JUST DRIVE IT EXCLUSIVELY TO GENERAL OBLIGATION BONDS BUT THAT'S MAJOR TOPIC TODAY.

>> THIS IS HOW IT BREAKS DOWN IN LOOKING AT WHAT WE'RE DOING.

>> ONLY THING I WANTED TO ADD I HAVE SOME SAME CONCERNS THAT YOU DO.

I TOOK A LOOK AT EVERYTHING THAT WAS IN HERE.

BUT I THOUGHT I WOULD WAIT UNTIL WE GOT TO QUESTIONS TO BRING UP SOME OF THE ISSUES THAT I HAVE.

AND LET THEM GIVE THEIR PRESENTATION.

I'VE BEEN MAKING NOTES ALONG THE WAY OF EVERYTHING THAT I WANTED TO ASK AND GET A RESPONSE TO.

BUT I HAVE THE SAME CONCERN.

>> THIS LEADS INTO WHAT MR. RITTER WE WERE JUST TALKING ABOUT, IS WE'RE LOOKING AT THIS LIST OF GENERAL OBLIGATION BONDS COVERING THOSE THREE MAJOR AREAS FOR $1.102 BILLION AND WE ALSO KNOW THAT WE'VE TALKED ABOUT BEFORE IT AND POLICE AND PUBLIC SAFETY PROJECT ERP.

WE KNOW WE HAVE AT LEAST UP TO CAPACITY OF $250 MILLION WORTH REVENUE BONDS.

WE HAVEN'T USED UP ALL THAT 250.

THAT MAY HELP SATISFY SOME OF THESE OTHER NEEDS THAT MAYBE THAT AREN'T IN THE GENERAL OBLIGATION BONDS OR MAYBE CAN DONE A FASTER RATE.

WE ALSO HAVE TALKED ABOUT COMMITMENT I HAVE FROM MY GOOD FRIEND SITTING NEXT TO ME THAT IS WE'RE GOING TO DO THIS FACILITY IMPROVEMENT PLAN.

WE KNOW WE HAVE $18 MILLION IN THE 23RD MAINTENANCE IN THE BUDGET.

WE KNOW WE NEED TO GET TO 24 TO $34 MILLION PROBABLY AT LEAST.

DON'T KNOW HOW MUCH WE CAN AFFORD.

BUT THERE'S A LOT OF THINGS THAT WAS IN THE ORIGINAL $2 MILLION, $2 BILLION, YES, MA'AM, JUST KEEP SLAPPING ME.

$2 BILLION LIST THAT WE'RE REALLY SOME THINGS THAT WE COULD DO WITH THE DEFERRED MAINTENANCE PLAN.

OR REMODELING PLANS.

SO, YOU KNOW, WHEN MASTER PLAN ARCHITECT LOOKS AT IT THEY LOOK AT EVERYTHING.

THEY LOOK ALL THE THINGS THAT NEED TO BE DONE.

WHAT WE'RE LOOKING AT, WITH THE GEO BONDS THAT THINGS THAT TRULY HAVE LONGEST TERM LIVE THAT GET BOSSY MOST BANG FOR YOUR DOLLAR WHEN YOU'RE GOING OUT FOR BONDS.

SO THERE'S A LOT OF THINGS THAT WE WANT TO DO ROOF REPLACEMENTS THINGS LIKE THAT WOULD FALL INTO THIS.

WE'RE TALKING ABOUT THIS MR. RITTER, SHARING AND PAY AS YOU GO, WE'VE GOT A MIXTURE HERE OF WHAT WE'RE TRYING TO DO WITH BEING ABLE TO COVER, BOTH SIDES OF THAT TO ATTACK THAT $2 BILLION LIST.

NOT GOING TO GET ALL DOVER OVERNIGHT >> SO IF YOU THINK OF THIS IN PARALLEL.

SO WHILE WE'RE IMPLEMENTING THE BONDSES SHOULD WE APPROVE THAT OF THE 1.1 BILLION, WE'LL ALSO BE IMPLEMENTING THE REVENUE BONDS ROUGHLY THAT SAME PERIOD OF 250 MILLION.

IF YOU DO THE MATH ON FACILITY IMPROVEMENTS THAT'S ROUGHLY ANOTHER 135 TO $150 MILLION THAT IS IN THERE.

SO LOT OF THINGS ALL GOING ON AT THE SAME TIME.

SO, THE INTENT HERE IS TO UNDERSTAND THAT THIS THE BOND IS ONE PIECE OF IT.

BUT, WE'RE ADDRESSING A LOT OF OTHER NEEDS.

>> AND IF I MAY, FOR THOSE NOT ON BOARD BACK IN 2004, THIS WAS A COMPARABLE APPROACH THAT WAS TAKEN THAT YOU HAD A REVENUE BOND PROGRAM IN THE 2000S.

YOU DID AWAY WITH WHEN YOU DIDN'T NEED ANY MORE BECAUSE YOU FINISHED PROJECTS THAT YOU FINANCED.

THIS VERY SIMILAR APPROACH THAT WAS TAKEN 14, 15 YEARS AGO.

DISTINCTION ALSO IS ALTHOUGH WE HAVE THESE FUNDING SOURCES, THE FINANCING OPTIONS FOR THESE ARE THE GENERAL OBLIGATION BONDS BEEN OUR CURRENT DEBT SERVICE KEEPING AT THE SAME TAX RATE WE HAVE.

SO NO ADDITIONALING TAXES, IT'S ACTUALLY OPERATING WITHIN WHAT WE ALREADY HAVE AVAILABLE.

WHAT WE'VE ALREADY COMMITTED TO.

AND THEN THE REVENUE BONDS BEING FINANCED OUT OF OUR OPERATING DOLLARS.

AND THE FACILITY IMPROVEMENT PLAN DEFERRED MAINTENANCE AS WE USED TO CALL IT OPERATING DOLLARS.

SO WE ARE LOOKING TO YOU KNOW, BURDEN TAXPAYERS WITH ANYTHING ADDITIONAL.

[00:55:01]

WE'RE WORKING WITHIN OUR CURRENT NEEDS.

>> AND 1.1 BILLION OH GO BONDS THAT'S MAXIMUM WE COULD FINANCE >> AT OUR

CURRENT TAX RATE >> CORRECT >> ON REVENUE BONDS 250 THAT DOESN'T MAX OUR CREDIT CARD

OUT YOU'RE HOLDING ADDITIONAL CAPACITY >> YES.

>> RESERVED FOR OTHER PROJECTS >> WELL, BUT EVEN THE GO BONDS, THERE, THIS IS NOT THE MAX, THIS IS THE MAX WE'RE COMFORTABLE WITH.

>> WITH NO ADDITIONAL TAX INCREASE.

>> WE WE CAN ESTIMATE THAT PROPERTY VALUES GO UP HIGHER THAN WHAT WE'RE PROJECTING OR ACTUALLY, WE PROBABLY WILL GO UP MORE THAN WE'RE PROJECTING.

WE WANT TO BE CONSERVATIVE IN TERMS OF HOW WE PLAN THIS OUT.

WE'VE ABLE TO AFFORD THIS, IN THE MANNER THAT WE'RE DOING IT BECAUSE OF THE SOME OF THE REFUNDINGS THAT WE'VE DONE.

SO THAT HAS REALLY HELPED OUR POSITION.

THAT'S BEEN A GOOD STRATEGY.

WHEN YOU TALKED ABOUT THE DEFERRED MAINTENANCE >> UH-HUH.

YOU'RE CALLING IT FACILITY IMPROVEMENT PLAN NOW, OKAY.

YOU SAID 18 TO 34 MILLION >> YEAH.

HOW DID YOU GET TO 34 MILLION?

>> WELL THE IS IT 18 OR 34?

>> OUR NEED IS 34 MILLION A YEAR IS WHAT WE NEED.

>> WE PRESENTED THAT TO THE BOARD A COUPLE MONTHS AGO >> WE LAID THAT OUT WHAT WE'VE INCREMENTALLY INCREASE THAT OVER THE NEXT SEVERAL YEARS STARTING NOW WITH $18 MILLION GET THAT TO 24.

WILL BE THE NEXT ROUND OF THAT.

AND BUILDING OURSELVES UP TO 34 MILLION.

THAT'S WHAT I HAVE IN BUDGET IN THE CURRENT YEAR >> 18?

>> SINCE WE HAVEN'T GONE THROUGH BUDGET WORKSHOP, THIS JUNE THAT WILL BE ONE THE BOARD'S DECISIONS.

IS HOW ARE, WE'LL COME THROUGH WITH RECOMMENDATION, BUT IT WILL ALSO BE HOW MUCH CAN WE COMMIT TO THAT.

AND WHAT ARE, HOW FAST DO WE WANT TO GET THROUGH THAT.

>> I WANT TO HEADACHE MAKE SURE THE DEBT SERVICE WITHIN EXACT PARAMETERS WE

CURRENTLY ARE >> YES.

>> WE WILL TALK ABOUT THAT NEXT.

>> THAT'S RIGHT.

WE WILL GO INTO DETAIL.

MAIN PRIORITY HAS BEEN SINCE TWO YEARS AGO WHEN DR. MAY SAID JOHN WE'RE GOING TO NEED A BILLION DOLLARS TO DO ALL WE NEED TO DO, ASK SO WE'VE WORKING ON THAT FOR TWO YEARS NOW.

MAKING SURE AND YOU KNOW, ONE POINT I THINK I MENTIONED THAT TO THE BOARD.

BUT WHAT HAS BEEN KEY WITH THAT, WHAT IS KEY IN AN ELECTION IS NOT INCREASING THE TAX RATE.

WHEN WE TALK TO COMMUNITY LEADERS ABOUT THAT THEY SAID, THAT'S A BIG PLUS RIGHT THERE.

BECAUSE THAT, IF YOU GO IN WE CAN AFFORD TWO BILLION IF YOU DOUBLE THE TAX, THE DEBT SERVICE TAX RATE WE CAN AFFORD TWO BILLION.

WE JUST HAVE NOT HAD THAT SINCE DAY ONE THAT WE WANTED TO INCREASE ANY DEBT SERVICE ON THE TAXPAYERS.

BEEN OUR NUMBER ONE PRIORITY.

>> WE KNOW THAT MEANS WE WILL HAVE TO DO SOME SOME THINGS OUT OF OPERATING

BUDGET THAT NEED TO BE DONE >> THAT'S RIGHT >> AND GO FORWARD.

BUT, YOU KNOW, WHAT WE'VE GOT TWO OBLIGATIONS HERE.

ONE TO INSURE WE HAVE THE FACILITIES THAT CAN ADEQUATELY SERVE THE COMMUNITY AND OUR STUDENTS BY GOING FORWARD.

SECONDLY TO RESPECT FINANCIALLY OUR ABILITY TO AFFORD IT AND HANDLE IT.

SO, THEIR NEED IN THIS CASE CERTAINLY EXCEEDS OUR CAPACITY TO GET THE DOLLARS IN PLACE.

WE KNOW THAT WE COULD EASILY BE PROBABLY CLOSER TO TWO AND A HALF BILLION THAN THIS.

BUT AT THE SAME TIME, WE'VE GOT A RESPONSIBILITY TO THE TAXPAYERS TO OTHERS IN THE COMMUNITY TO MAKE SURE THAT WE'RE, WE'RE OPERATING WITHIN PARAMETERS THAT MAKE SENSE TO EVERYONE.

>> THESE FUNDING SOURCES DON'T EVEN IDENTIFY OTHER PEOPLE'S MONEY LIKE >> BECAUSE, THAT'S BETTING ON THE CONFIDENCE TO CERTAIN DEGREE WE'RE GOING TO DO ALL OF THAT.

I WILL LET JEFF TALK ABOUT IT >> WE HAVE WEEKLY CONVERSATION WITH FOLKS ABOUT IT.

I'M COMFORTABLE TO SAY THAT THAT'S GOING TO HAPPEN.

I'M NOT COMFORTABLE SAYING EXACTLY HOW IT'S GOING TO GOING TO HAPPEN.

>> AND YOU KNOW, IF WE HAVE AN AUTHORIZATION.

WE WILL TALK ABOUT AND MAYBE WE REDUCE THE VALUE OF THESE PROJECTS BECAUSE OF TAX CREDITS.

THEN BOARD HAS DECISION WHAT TO DO WITH THAT ADDITIONAL MONEY.

>> IT'S NOT OUR MONEY.

>> IT'S, REALLY THE CAPACITY THAT WE WOULD HAVE.

>> YOU HAVE ABILITY TO AN ADJUST AUTHORITY YOU HAVE GOING FORWARD IF YOU HAVE

REDUCED COSTS THAT YOU DO FUND WITH BONDS >> RIGHT.

>> YOU HAVE FOUR ISSUANCES OF OVER SIX YEARS, THE YOU GET TO THIRD >> JUST QUICK COMMENT ON THAT.

THAT GOES TO THE QUESTIONS ON SPECIFIC PROJECTS AND SPECIFIC ISSUES IS THAT ACTUALLY WHAT WE'RE LOOKING HERE IS OVERALL AVAILABLE POOL AND WITHIN THAT POOL WE HAVE THE FUTURE AUTHORITY TO MAKE DECISIONS ON HOW WE USE THAT MONEY, WHERE WE USE IT.

HAVE WE SAVED MONEY ON SOME IDEA THAT WE HAD BEFORE, OR EL CENTRO AT 235 MILLION IS REALLY MORE LIKE 535, MORE LIKE 499 MILLION.

SO WE NOW HAVE OTHER ALREADY APPROVED MONEY TO USE IN OTHER AREAS WHERE WE HAVE

SAVED MONEY THROUGH SOME OF THESE >> AND THAT HAPPENED WITH 2004 BONDS.

THE A BE A NUMBER OF PROJECTS CAME IN UNDER THE ESTIMATES.

SO THOSE DOLLARS WERE USED TO ADDRESS SOME OTHER >> ESPECIALLY AFTER 2008 >> YEAH.

[01:00:01]

WHEN THE FINANCIALS WHEN THE >> YEAH WHEN THINGS CUT IN HALF >> SUDDENLY THE DOLLARS WENT FURTHER.

>> AS AN EXAMPLE OF THAT, YOU HAD AN INTERIM FINANCING PROGRAM THAT WAS PUT INTO PLACE IN 2006 TO PROVIDE FINANCING FOR THE PROJECTS THAT YOU GO AUTHORITY FOR AND TOOK THOSE PROJECTS OUT.

OR TOOK COMMERCIAL PAPER OUT.

WHEN 2008 HIT THE COST OF MAINTAINING THE PROGRAM WAS NOT WORTH KEEPING.

THAT IS BOARD TERMINATED THAT PROGRAM.

SO 2008 WAS A REAL BELLWETHER IN A LOT OF WAYS OF HOW DISTRICT PROCEEDED ON PROJECTS.

>> WHAT WE WOULD LIKE TO DO NOW IS ASK OUR ESTEEMED FINANCIAL ADVISORS, BOB AND I WERE TRYING TO FIGURE OUT WHERE WE MET.

IT'S BEEN A NUMBER OF YEARS.

I WAS SO GLAD WHEN I CAME TO DALLAS AFTER HAVING MET HIM WE WERE USING ESTRADA AS ONE OF OUR FINANCIAL ADVISOR I'VE KNOWN A MAN GOOD WE FINALLY GOT TO WORK TOGETHER.

I HAVE, ONE LAST REFUNDINGS MAYBE TWO TIMES AGO, HE CAME UP WITH A BRILLIANT IDEA BASICALLY AND SAVED US I DON'T KNOW, HOW MANY BASIS POINTS DID YOU SAVE ON THAT IDEA? ANYWAY.

IT'S REALLY GOOD TO HAVE TEAM LIKE THIS THAT WORKS WITH US ON WHAT WE CAN DO.

I'LL TURN IT OVER TO Y'ALL AND YOU TELL US WHAT YOU WANT TO DO >> AS YOU SEE ON THIS SLIDE IT GIVES YOU WHAT WE'VE DISCUSSED AS MAINTAINING CURRENT TAX RATE.

TWO SCENARIOS THAT BASIC JASON HUGHES WILL GO INTO A MOMENT.

WE'VE, RUN ALL OF THE NUMBERS A WE SAY IN OUR BUSINESS, WE HAVE RUN THE NUMBERS MORE THAN A DOZENS OF WAYS OF HOW MUCH CAN WE ISSUE AND WHAT YEAR.

AND WHAT ASSUMED INTEREST RATE.

ALL BEEN VERY CONSERVATIVE ESTIMATES.

WE HAVE MAY HAVE MUCH MORE CAPACITY THAN WE'VE ASSUMED.

WE'RE TRYING TO BE VERY REALISTIC AND CONSERVATIVE IN THOSE SMALTS AND HOW FAST THE TACK RATE WILL GROW.

TAX AIS ISSED EVALUATION WILL GROW OR NOT GROW.

ALSO NOT EXCEEDING UNREASONABLE NUMBER OF YEARS TO REDUCE THE DEBT AS YOU KNOW, YOU CAN BORROW THE SAME AMOUNT OF MONEY AND COSTS YOU MORE TO BORROW FOR 40 YEARS THAN 20 YEARS.

AND SO WE'RE TRYING TO KEEP THE LENGTH OF THE DEBT MATURITIES THAT WE DO ISSUE TO A REASONABLE RANGE THAT REDUCES THAT OVERALL COST.

AND I WOULD LIKE FOR JASON HUGHES TO GO INTO ALL THE DIFFERENT SCENARIOS THAT WE'VE RUN THROUGH AND THEY ARE A PART OF YOUR PRESENTATION THAT YOU'VE GOT.

>> ONE THING I WOULD DO, BOB TALKED BAT $0.02 CAP.

AND JOHN CALLED EARLIER CRITERIA NUMBER ONE.

THAT'S REALLY THE BASE THAT WE USED.

ONE THING TRUSTEE JAMESON'S QUESTION 1.1 BILLION IS A SIGNIFICANT AMOUNT.

ONE THE THINGS GOING BACK TO AND EVEN THREE YEARS AGO WHEN WE ARE DOING REFUNDING

[01:05:02]

YES WE WERE ACHIEVING A LOWER INTEREST RATE TO GET THAT SORT OF SAVING BUT AT THE SAME TIME PUSHING UP WHAT WE WERE PAYING THAT PRINCIPLE OFFER TO GIVE YOU AN IDEA OF SCOPE OF THAT YOU HAVE SOME NATURAL CAPACITY THAT HAS BEEN BUILT IN BECAUSE OF THAT.

>> YOUR DEBT SERVICE IN 2020 IS 52.2 MILLION.

YOUR DEBT FOR 2020 TO 2021 DROPS APPROXIMATELY $30 MILLION.

OKAY.

THAT 2021 WOULD BE FIRST YEAR IN WHICH WE WOULD ANTICIPATE THAT SERVICE FROM A $1.1 BILLION BOND ELECTION.

SO AGAIN YOU HAVE $30 MILLION AUTOMATICALLY IN 2021.

YOUR DEBT YOUR CURRENT DEBT IS FULLY PAID OFF BY 2030.

SO THAT'S HOW TRUSTEE TO YOUR QUESTION HOW WE'RE ABLE TO STAY WITHIN THAT $0.02.

>> THEN INTEREST RATES DROP AND COSTS GO DOWN AS YOU DESCRIBE THAT 30 MILLION IN YOUR EXAMPLE DOESN'T COME BACK TO THE DISTRICT IN OPERATING BUDGET IT GOES BACK TO TAXPAYERS RECALIBRATED AND LOWER RATE FOR THE DEBT? THE BOARD ULTIMATELY HAS ABILITY ON HOW THEY WANT TO USE THAT.

AGAIN WHAT I MEAN BY THAT IS IF YOU DO STRAIGHT REFUNDING YOU TAKE WHAT I WOULD CALL LEVEL DEBT SERVICE SAVINGS YOU CAN ACTUALLY DROP THE TAX RATE.

AGAIN AS JOHN TALKED ABOUT IN ANTICIPATION OF A POTENTIAL BOND ELECTION, PUSHING THAT PRINCIPLE UP WHAT WE TRIED TO DO IS REALLY KIND OF MAINTAIN THE $0.02 SO WE DIDN'T DROP AND IMMEDIATELY HAVE TO RAISE IT AND TIED TO 2019 BOND ELECTION.

TAXPAYERS TAXPAYERS BENEFITTED BECAUSE PAY OFF EARLY >> THIS IS IMPORTANT I TOOK OUT PRESENTATION BUT YOU'VE SEEN IT BEFORE.

OUR DEBT SERVICE DROPS OFF DRAMATICALLY IN TWO YEARS.

I'VE FORGOTTEN WHICH ONE WE GOD PALT OFF OF WE'RE PAYING OFF TWO SERIES OF BONDS HERE IN NEXT COUPLE OF YEARS.

AND THEN, SOME OF REFINANCING AND WE DID THE 2010, WE'RE DONE WITH ALL OF THIS STUFF FROM 2004.

BY 2030.

SOUNDS LIKE A LONG TIME.

THAT'S REALLY TEN YEARS INTO WHAT WE'RE DOING IN THIS PROGRAM.

AND DEBT SERVICE WE HAVE REMAINING ON THAT IS VERY MINIMAL.

THAT'S HOW WE'VE ABLE TO STRUCTURE THIS DOING PLANNING WHERE WE'RE GOING TO BE SOMEWHERE IN THE FUTURE.

>> YOU'RE SAYING THE 247 MILLION THAT'S IN HERE WHICH IS OUR CURRENT DEBT?

>> YES.

>> YOU WILL PAY OFF IN FEW YEARS.

HOW MANY YEARS IS FEW >> A BIG PORTION OF IT GETS PAID OFF JASON IN THE NEXT TWO YEARS.

IT DROPS DOWN DRAMATICALLY.

AND THEN, WE HAVE A SMALLER AMOUNT AFTER THAT.

HE MAY BE ABLE TO ADD THAT >> THAT'S BECAUSE THE WAY BONDS WERE ISSUED.

INITIALLY.

SO THEY WEREN'T ALL DONE AT ONES.

THEY WERE DONE ISSUED OVER A SERIES OF YEARS.

SO THEY STAGGER A BIT.

AND SO >> EXCUSE ME.

>> WHAT I'M TRYING TO FIND OUT RIGHT NOW, AND I THINK I SAW IT IN HERE, THAT OUR CURRENT OUTSTANDING DEBT IS $247 MILLION.

>> $224 MILLION GENERAL OBLIGATION DEBT OUTSTANDING.

>> OKAY.

>> THAT'S PRINCIPLE.

IF YOU ADD INTEREST TOTAL 263.5 MILLION THAT'S WHAT'S REMAINING AND FULLY PAID

OVER OFF BY 2030 >> 2030?

>> YES, MA'AM SAY THAT WHAT WAS THAT FIGURE AGAIN >> 263.5 MILLION THAT.

THAT'S PRINCIPLE PLUS THE INTEREST THAT'S DUE ON THE EXISTING.

>> PAID OFF >> IN 2030 >> 2030?

>> YES, MA'AM >> NOT TO MINCE THINGS HERE WE HAVE FULLY PAID OFF WE'RE NOT

HOLDING REVENUE BONDS >> CORRECT.

>> THAT'S ZERO.

>> TRUSTEE COMPTON ON PAGE 24 WE PUT THAT INFORMATION WE CALL IT PART APPENDIX.

THAT INFORMATION IS IN ONE BULLET POINTS ON PAGE 24.

SO WE'RE NOT REALLY GOING TO GO THROUGH PRESENTATION APPENDIX I KNOW WE LOOK AT THIS STUFF OF FINANCING THINGS WE LOVE TO POUR OVER THOSE WHAT WE'VE DONE.

BUT YOU'RE NOT LOOKING THEM CONSTANTLY I WILL LET JASON DO BEST HE CAN WHAT WE'RE TRYING TO DO AND WHAT SCENARIOS TRY TO SAY.

I'M SORRY.

>> INTEREST RATES.

INTEREST RATES ARE TRIED TO RATE INFLATION.

YOU KNOW, WE'VE BEEN IN THE LOW INTEREST RATE ENVIRONMENT, THAT WILL PROBABLY CHANGE.

OUR PLANNING A ON NO INCREASE IN TAX RATE.

IF INTEREST RATES GO UP DRAMATICALLY WEEP HAVE TO RAZOR TAX RATE BECAUSE OUR COST BORROWING ABOUT GO UP.

>>

>> CARRY THE PERIOD WHEN RATES ARE AT SUCH A LEVEL WHERE YOU CAN'T LIVE WITHIN TWO PERCENT.

AND THOSE PROGRAMS NOW SOME OF THE YOU'RE AAA RATED IS YOUR, THERE PROGRAMS NOW WHERE YOU DO NOT NEED A CREDIT FACILITY OR BANK PROVIDING LIQUIDITY SUPPORT FOR COMMERCIAL PAPER.

THAT'S SOMETHING WE HAVE TO LOOK AT AS A TEAM OBVIOUSLY.

BECAUSE THE BOARD WOULD HAVE TO APPROVE THAT.

THAT COULD BE AN OPTION THAT WOULD COME INTO PLAY.

>> I THINK IN ADDITION TO THAT IF I MIGHT, ON WHAT WE HAVE LOOKED AT SO FAR, WE'VE BEEN VERY CONSERVATIVE.

WE'VE ASSUMED ONLY FIXED RATE ISSUES AND WE'VE ACTUALLY ADDED INTEREST RATE CUSHION COMPONENT TO THAT WE'RE NOT BASING SIMPLY ON CURRENT MARKET RATES.

WE'RE TAKING OR FACTORING IN HAS THE INTEREST RATES LONG-TERM INTEREST RATES CAN GO UP.

SO IF YOU LOOK AT IT, YOU'VE GOT ANYWHERE FROM 1 PERCENT TO ACTUALLY 2 PERCENT FOR LATER ISSUES, THAT ARE ANTICIPATED IN 24, 26, SO, IN ADDITION TO WHAT JEFF IS SAYING, WE COULD LOOK AT OTHER ITEMS SUCH A SHORT-TERM FINANCING YOU ALSO HAVE A FLEXIBILITY OF REMEMBERING WHEN EVER CITIZEN APPROVE BOND ELECTION ALL SIMPLY DOING YOUR RIGHT YOU DON'T HAVE TO ISSUE FULL AMOUNT AND ISSUE ACCORDING TO A SCHEDULE.

WHAT WE HAVE AS YOU CAN YOU CAN SEE ON SLIDE THERE, TWO BASE SCENARIOS FOUR ISSUES OVER SIX YEARS.

DIFFERENCE BETWEEN TWO SCENARIOS IS ONE ASSUMES 500 MILLION FOLLOWED BY TWO YEARS LATER 300 MILLION AND THEN VICE VERSA.

THOSE CAN CHANGE.

AGAIN, THAT'S SUBJECT TO YOUR ACCIDENT HAPPEN PLAN.

SUBJECT TO YOU AS A BOARD HOW YOU WANT TO ISSUE THAT DEBT.

>> AND THE REASON FOR THAT, 500 MILLION IN ONE YEAR AS OPPOSED TO OTHER IS DEPENDING ON DOWNTOWN CAMPUS.

WHEN WOULD IT COME INTO PLAY?

>> SO, ROTARY CLUB AND WE'VE THE GOOD A QUESTION, ABOUT, EFFECTIVE INTEREST RATES ON THE TAX RATE FOR BOND, WHAT WE CAN TELL THEM IS THAT THE BOARD HAS LOT OF OPTIONS IF THAT YOU KNOW IF INTEREST RATES GO UP IN ORDER TO COVER HIGHER COSTS OF

[01:10:11]

CAPITAL >> WE HAVE THAT FINANCIAL FLEXIBILITY >> ONE THINGS WE DID SENSITIVITY NUMBER HAS MORE TO DO WITH AFFORD ABILITY.

>> INTEREST RATES MAY NOT LONG LIST JUST LIKE TAB DROPS IT MAY DROP BUT IT IS NO NOT LONG LIVED.

THESE BLIPS.

EVEN IF THE FED CONTINUES TO INCREASE RATES, I'M NOT MAKING PROJECTION'S HERE PLEASE GENTLEMEN DON'T HOLD ME TO THAT THIS THAT DOES NOT NOT MEAN 20 AND 30 YEAR TREASURIES CHANGE THAT'S HOW WE GET TO INVERTED OR FLAT YIELD CURVES.

SO, THAT'S WHAT THEY HAVE CONTROL OVER SHORT-TERM RATES.

THE MARKET SETS-- TELL ME I'M WRONG >> THE MARKET SETS THE LONG-TERM RATE >> MR. RITTER SAYS YOU CAN TELL THE PUBLIC THERE ARE MULTIPLE WAYS TO BORROW THE MONEY THAT DEPENDING ON INTEREST RATE ENVIRONMENT.

AND MINIMIZE THE ADVERSE EFFECTS.

ABSOLUTELY.

NORMAL YIELD CURB SHORT-TERM ONE YEAR INTEREST RATE IS GOING TO BE MUCH LOWER THAN A 30-YEAR INTEREST RATE.

BUT, RIGHT NOW WE'RE IN A FLAT YIELD CURVE WHETHER YOU ISSUE BONDS FOR TWO YEARS OR

20 YEARS, ITS ALMOST THE SAME RATE TODAY >> IF YOU GO BACK TO NORMAL YIELD CURVE AND RATES START GOING UP THERE WAYS AS MR. LEUSCHEL SAID A BORROW SAME AMOUNT OF MONEY ON SHORT-TERM RATE BASIS AND MARKETS ARE VERY USED TO THAT.

VERY COMMON.

>> IT GETS BACK AGAIN ONE REASONS WHY WE'RE CONSERVATIVE.

YOU OBVIOUSLY AWE TALKED ABOUT YOU HAVE TO MAKE A DECISION NOW TO HOLD A BOND ELECTION TO HOLD.

2026.

WE DO HAVE TO MAKE SOME ASSUMPTIONS.

BUT THAT'S WHY WE WANT TO BUILD IN AS MUCH CUSHION AS POSSIBLE TO TRY TO HANDLE THAT.

>> YES, MA'AM >> YOU SAID YOU WEREN'T GOING TO INTO SCENARIOS ON THIS PAGE 13, IS THAT WHAT WE'VE, THAT 20-YEAR MATURITIES THAT'S THE AVERAGE?

>> ONE THINGS WE WILL TELL YOU IF YOU GO BACK TO 2004 BOND ELECTION, THOSE ISSUES

WERE STRUCTURE AD 20 YEAR BONDS >> CAN YOU ALL SPEAK A LITTLE LOUDER >> YES THOSE WERE STRUCTURED 20-YEAR BONDS.

TIED TO THE 2004 BOND ELECTION.

IF YOU RECALL TO GO BACK AND YOU LOOK AT THE TAX BASE GROWTH TO JOHN'S POINT AS FAR AS WHAT IS DRIVER AS FAR AS WHAT'S REQUIRED FOR THE TAX RATE YOU SIGNIFICANT TAX BASE GROWTH YOU ALSO HAD SKWIGS WHEN EVER YOU WENT TO CITIZEN FOR 2004 YOU TOLD THEM MAXIMUM TAX RATE OF 2.5 CENTS I BELIEVE YOU STAYED WELL BELOW 2.2.

WE HAD FLEXIBILITY THERE CUSHION THERE.

WHAT WE TRIED TO DO IN MAINTAINING AGAIN THE GOAL OF $0.02, OR BEING AT THE $0.02 IS, WE HAVE ON THE FIRST SCENARIO ASSUMED A 30-YEAR BOND ISSUE.

>> AND THOSE SCENARIOS, AND THAT WAS MY QUESTION.

BECAUSE IF YOU LOOK AT PAGE 19, YOU GOT THE SERIES 2020.

THIS IS 30 YEARS.

>> YES, MA'AM.

>> WE HAD ASSUMED 30-YEAR PARTICULARLY WITHIN THE LARGER AS WELL AT FIRST

[01:15:29]

ISSUE IN TAKING ADVANTAGE AS BOB TALKED ABOUT OF LONG-TERM RATES AND HOW LOW THEY ARE RIGHT NOW.

IT ALSO PROVIDES FLEXIBILITY AS FAR AS THEN LOOKING AN AT THE 22, 24, 26 ISSUES AGAIN TO MAKE SURE THAT WE HAVE, WE MAINTAIN FLEXIBILITY AND STAY WITHIN THAT $0.02 MAXIMUM.

>> SO >> THIS IS I'M SORRY, GO AHEAD.

>> AND AN INTERPRETATION OF WHAT YOU SAID IS THAT WE'RE LOOKING AT 30 YEARS RATHER THAN 25 IF WE PAY IT OFF IN 25.

SO BE IT BECAUSE WE GOT TO BUT YOU'RE BASICALLY ADVISING THAT WE INITIALLY MAKE IT FOR 30 YEARS?

>> YES, MA'AM >> OKAY.

IN THAT POLICY WE SAID WE ISSUED DEBT NO LONGER THAN 30 YEARS.

WE'RE ALLOWED TO GO 40 >> CORRECT.

>> THE AVERAGE OF ALL OF THE OUTSTANDING MATURITIES WOULD BE 25 YEARS OR LESS.

THE IDEA >> CURRENT >> AVERAGE OF OUTSTANDING MA CHOOURTS.

SO IF WE HAVE 20S NOW, AND WE ISSUED 30S, WHAT WE WILL DO MAKE SURE WE ALWAYS HAVE, WHEN YOU ISSUE MATURITY RADAR CHOOURT NOT YEAR 30 YEAR DEBT WE ISSUE AMOUNTS PER EACH YEAR YEAR ONE THROUGH YEAR 30.

TO ACHIEVE THE DEBT SERVICE THAT WE WANT.

IT'S NOT A MORTGAGE PAYMENT.

THIS IS, THIS IS NOT A LIKE WHEN YOU GO FOR YOUR HOUSE.

WE ISSUE DEBT.

WE ALSO DO THIS BASED ON WHAT IS THE SWEET SPOT OF THE MARKET AT THE TIME.

TEN YEARS MIGHT BE THE MOST ATTRACTIVE.

MAYBE 20 YEARS ARE.

SO WE STRUCTURE WHEN WE ACTUALLY ISSUE BONDS, THESE ARE SCENARIOS TO MAKE SURE WE CAN AFFORD IT.

YOU WOULDN'T BELIEVE HOW MANY ITERATIONS UP TO ABOUT 40 NOW.

>> WE WENT TO VOTERS 15 YEARS AGO, MAKE SURE I HEARD JASON YOUR NUMBERS RIGHT.

WE TOLD VOTERS AT THAT TIME WE WOULD NOT IMPOSE A TAX RATE HIGHER THAN 2.5 CENTS.

WE HAVE IN THAT 15 YEAR PERIOD WE'VE NEVER EXCEEDED THAT.

IN FACT THE AVERAGE TAX RATE OVER 15 YEARS HAS BEEN PRETTY MUCH $0.02.

HIGHEST EVER GOT TO WAS 2.14 CENTS.

WE TOLD VOTERS WE ASKED PER IN ADDITION TO BORROW MONEY TO BUILD THIS DISTRICT.

THEY APPROVED IT.

AND WE BE GOOD BUSINESS STEWARD FOR 15 YEARS IN FACT MANAGING SUCH A WAY WE'VE 20 PERCENT BELOW THE TAX RATE AUTHORIZATION THAT WE PROMISED VOTERS WE WOULD PUT ON THEM.

I MEAN THAT SOUNDS LIKE REALLY RESPONSIBLE STEWARD SHIP BY ALL YOU ON BOARD KNOW THIS.

>> THIS WILL BLOW YOUR MIND WE'RE ACTUALLY AUTHORIZED UP FROM $0.50, WE'RE AT $0.02.

AND STATE LAW FOR DEBT SERVICE WE'RE ALLOWED TO AUTHORIZE UP $0.50.

WE'RE NOT EVEN CLOSE TO.

>> TO YOUR POINT TOO I THINK CON TEXAS BOND ELECTION OCCURRED IN 2004 YOU THINK ABOUT OUR LAST THREE ISSUANCES THAT HAPPENED IN 2008, 2009, AND 2010 YOU THINK ABOUT WHAT WAS GOING ON IN GENERAL ECONOMY AT THE TIME, DEPRESSED TAX VALUES, THINGS OF THAT NATURE, I THINK TO YOUR POINT YOUR STEWARD SHIP OF THAT PROGRAM WHAT YOU TOLD YOUR CITIZENS THEN AND YOUR ACTIONS SPEAKS LOUDLY.

>> I THINK UNLESS IF YOU WANT ME TO GO THROUGH AND JOHN ALLUDED THERE ARE SCHEDULES IN THE BACK.

SO YOU HAVE A SUMMARY SCHEDULE TO GO THROUGH THE TWO SCENARIOS.

THERE IS AS JOHN POINTED OUT TAX VALUE SENSITIVITY WHAT WOULD HAPPEN TO TAX RATE IN DIFFERENT SCENARIOS WITH THE TAX VALUES.

AND THEN WE HAVE THE FULL SCENARIOS AS WELL THAT BOB AND I HAVE PUT TOGETHER.

WOULD HAPPY TO ANSWER ANY OF THOSE QUESTIONS >> THE ONLY DIFFERENCE BETWEEN THE TWO

SCENARIOS YOU PLAYED OUT IS THE AMOUNTS OF FIRST TWO PROJECTS >> YES.

WAS THERE FINANCIAL BENEFIT TO THE DISTRICT IN GOING TO THE MARKET WITH BONDS NOW OR AS EARLY AS POSSIBLE AS POSED TO TWO TO THREE YEARS FROM NOW WHAT WE THINK INTEREST RATES WILL DO, AND IF ANSWER TO THAT QUESTION IS YES, YOU GO TO ALL CAMPUS BUBBLED UP TO GET TO WORK QUICK WILL SO WE CAN TAKE ADVANTAGE OF ALTHOUGH COST

FINANCING >> TRADE OFF THERE USING SHORT-TERM FINANCING TO HANDLE WHAT YOU NEED DURING THE CONSTRUCTION PHASE.

YOU ISSUE AT BONDS TODAY YOU'RE MAKING YOUR MORTGAGE PAYMENT BEFORE THE HOUSE IS BUILT.

AND THAT TYPICALLY IS MORE EXPENSIVE.

[01:20:02]

STRATEGIC PRIORITY RATE FLUCTUATIONS USUALLY DO NOT I MEAN IF YOU WE ISSUED $500 MILLION TOMORROW WE'RE GOING TO START PAYING DEBT SERVICE ON NEXT YEAR.

WE MAY NOT FINISH THOSE PROJECTS FOR THREE YEARS.

SO IN JOHN'S MIND WHAT IT BOILS INTO I'M NOT GETTING ANY BENEFIT FOR EXPENSE I HAVE.

AND, I WAS BROUGHT UP AS AN ACCOUNTANT I GOT TO GO BACK FOR THESE I'M ALWAYS LOOK WHAT KIND OF REVENUE OR BENEFIT AM AM I GETTING FOR EXPENSE THAT WE HAVE.

>> ONE BEST THING I THINK DISTRICT DID WHEN THEY SET UP THEIR CP PROGRAM TO USE SHORT-TERM DEBT TO PAY FOR INTERIM MONEY YOU NEEDED TO CONSTRUCT THE FACILITIES.

WHEN YOU'RE FINISHED WE OUT AND DECIDE HOW MUCH OF THAT YOU MIGHT AUTHORIZE 300 MILLION OF SHORT-TERM CONSTRUCTION MONEY.

WE GO GET SHORT-TERM INTEREST RATES.

ONCE WE GET UP TO THAT A SOME POINT WE COME TO BOARD RATES ARE REAL GOOD.

LET'S GO OUT AND DO 150 MILLION OF THAT FIX IT RIGHT NOW.

>> THAT'S ALL OF THESE OPTIONS THESE, THESE PEOPLE ARE SMART ONES HERE.

THEY ARE ONES THAT HELP ME WITH THIS.

AND FIGURING OUT WHAT TO DO >> ONE OTHER DISADVANTAGE OF DOING WHAT YOU'RE SUGGESTING NOT PROPOSING BUT SUGGESTING IS THAT YOU HAVE UNDER FEDERAL INCOME TAX LAW THREE YEARS TO SPEND 85 PERCENT OF THE PROCEEDS.

IF YOU DON'T THEN YOU HAVE CONSEQUENCES.

CONSEQUENCES AREN'T TERRIBLE, YOU HAVE TO YIELD RESTRICT MONEY YOU HAVE LEFT UNTIL YOU SPEND IT ALL.

THE OTHER RISK IS THE IRS IS NOW MORE AGGRESSIVE IN AUDITING BOND ISSUES.

THEY ARE GOING TO LOOK MORE AND MORE AT OKAY, YOU ISSUE THAT HALF BILLION, YOU ONLY SPENT 200 MILLION.

WHY DID YOU DO THAT.

SO THAT, THAT'S KIND OF A RED FLAG TO AN AUDITOR.

SO YOU'VE GOT TO BE CAREFUL.

NOT TO SAY YOU CANNOT DO IT BUT YOU HAVE TO BE CAREFUL.

>> ALL RULES GO OUT WINDOW IF YOU BASICALLY DO ALL UNDER SHORT-TERM FINANCING AND FIX BONDS BECAUSE YOU HAVE NO HIDDEN ISSUE.

TAX FREE DEBT.

>> WITHOUT GETTING TOO WON KEY HERE.

YOU CAN A LEGAL TERM >> UNLIMITED RATE DURING THE FIRST THREE YEARS OF THE EXISTENCE OF THE PROCEEDS.

NOW IN TODAY'S WORLD GETTING RATED IN A RETURN IN EXCESS OF YIELD ON YOUR BONDS PROBLEMATIC AT BEST IF YOU'RE SUCCESSFUL IN THAT, YOU HAVE TO REBATE THE DIFFERENCE BETWEEN YIELD ON BONDS AND YOUR EXCESS EARNINGS TO TREASURY.

THAT'S REBATE.

>> ONE THING >>

>> IS T.

SORT OF GOES TO POINT OF BEING CAREFUL IN HOW YOU MANAGE WHAT YOU ISSUE SO YOU DON'T HAVE ANY OF THAT KIND OF RISK ARISE.

DIRECTION WHAT WE HAVE SCHEDULED RIGHT NOW AGAIN IS JOHN SAID JUST FOR THE SCENARIOS FOR PLANNING PURPOSES.

IS 150 MILLION BEING ISSUED IN 2024.

150 MILLION BEING ISSUED IN 2026.

IF WE GOT TO 2024, LET'S SAY INTEREST RATES WERE LOW, TAX VALUES HAD STAYED UP, JOHN

[01:25:08]

SAYS I HAVE CAPACITY TO DO THE FULL 300 MILLION, THE BOARD CERTAINLY HAS THE ABILITY AND FLEXIBILITY WHERE THEY CAN GO AHEAD AND ISSUE THAT FULL 300 MILLION.

IN EFFECT FINISH THAT CAPITAL IMPROVEMENT PROGRAM TWO YEARS IN ADVANCE.

SCENARIOS ONLY.

>> OKAY.

TANYA AND ARE GOING TO TALK ABOUT AT TWO STEP PROCESS.

I'VE ALREADY TALK ABOUT FIRST STEM I DON'T SEE A NEED TO REPEAT WHAT SEED WE CAN CERTAINLY ANSWER QUESTION.

TONYA WILL TAKE YOU THROUGH WHAT WILL HAPPEN IF THE VOTERS APPROVE THE ISSUANCE OF THE BONDS AND VARIOUS STEPS THAT HAPPEN WITH RESPECT TO THAT.

>> OKAY.

SO AT THIS POINT THE STAGE HAS SET YOU HAVE YOUR AUTHORIZATION FOR YOUR 1.1 PLUS.

YOU HAVE THIS WONDERFUL DRAFTED LANGUAGE BY YOUR COCOUNSEL THAT GIVES YOU BROAD AUTHORITY THAT BASICALLY SAYS YOU CAN CONSTRUCT YOU CAN RENOVATE YOU CAN DO THESE VERY BROAD THINGS.

>> CONSISTENT WITH STATE LAW.

WHERE STATE LAW AUTHORIZES >> SO YOU HAVE YOUR APPROVAL.

THIS WHAT I WOULD LIKE TO THINK THIS OF AS FUN PART.

NOW YOU AS A BOARD, THIS WHEN YOU STEP UP AND YOUR FULLY ENGAGED IN THE PROCESS AS MUCH, MUCH DEEPER LEVEL WHICH WILL ACTUALLY SPEAK TO CONCERNS THAT TRUE TEE COMPTON HAS ABOUT THE SPECIFIC PROJECTS THAT YOU'RE GOING TO BUILD AND WHEN YOU'RE GOING TO BUILD THEM.

>> SO EACH AND EVERY BOND ISSUE THAT YOU ISSUE UNDER THAT 1.1 BILLION HAS TO BE AUTHORIZED BY THE BOARD.

WHETHER 300 MILLION, 200 MILLIONS ALL OF THOSE DECISIONS WILL A MADE BY THIS TEAM PRESENTED TO YOU FOR CONSIDERATION BUT YOU WILL HAVE TO DECIDE WHAT PROJECTS WILL ACTUALLY GO UNDER THAT PARTICULAR BOND ISSUE.

YOU DO IT AT THAT POINT BECAUSE THE ATTORNEY GENERAL'S OFFICE WILL REVIEW EVERY ONE OF THESE BOND ISSUES AND GOING TO MAKE SURE THAT THE DOCUMENTS THAT WE PRESENT TO THEM APPROVE THAT YOU HAD AN OPPORTUNITY TO REVIEW AND APPROVE WHAT HAS HAPPENED.

THEY ARE ALSO GOING TO LOOK AT WHETHER YOU'RE ISSUING ONLY WHAT YOU NEED.

IF YOU ONLY NEED FOR THE PROJECTS THAT YOU'RE LOOKING AT $300 MILLION, THEY ARE NOT GOING TO APPROVE YOU TO ISSUE YOU KNOW $500 MILLION.

YOU DON'T NEED ALL THAT MONEY FOR REASONS THAT WE ARE STATED.

>> THESE BONDS ARE INTENDED TO BE ISSUED WITHIN TEN YEARS.

THAT'S NOT A HARD CAP.

THAT'S THE INTENTION, THAT'S THE PLAN.

BEYOND THAT, YOU MAY HAVE TO WRITE A COUPLE PRAPS YOU KNOW PACE US EXTRA MONEY TO

WRITE EXTRA PARAGRAPHS >> THAT POINT, YOU KNOW, YOU NEED TO HAVE YOUR DECISIONS MADE WITHIN THE TEN YEARS.

AND YOU DON'T HAVE TO ISSUE ALL OF IT JUST BECAUSE YOU HAVE THE AUTHORIZATION.

OBVIOUSLY YOU HAVE $2 BILLION WORTH OF PROJECTS.

YOU'RE ONLY ASKING FOR AUTHORIZATION, YOU'LL PROBABLY USE IT ALL.

RIGHT? BUT YOU DON'T HAVE TO USE IT ALL.

YOU'RE NOT REQUIRED TO DO ANYTHING.

I THINK THE POINT OF THE THIS SLIDE IS YOU AS A BOARD HAVE COMPLETE CONTROL OVER HOW YOU SPEND THAT MONEY ONE POINT I DO WANT TO MAKE.

REASON WE'RE GIVE YOU GO SUCH BROAD AUTHORITY AT THIS POINT WITH THESE HUGE CAPS IN TERMS OF HUGE DESCRIPTIONS IN TERMS OF RENOVATION, AND CONSTRUCTION, IS BECAUSE YOU MAY DECIDE OVER NEXT TEN YEARS, THAT WHAT YOU THOUGHT YOU WANTED TO SPEND THE MONEY ON IN 2019 IS DIFFERENT IN 2020.

WITH THIS BROAD AUTHORITY AS LONG A FITS UNDER CATEGORIES YOU CAN DO WHATEVER YOU WANT.

SO IF DOESN'T TIE YOUR HANDS AND DOESN'T TIE HANDS TO FUTURE BOARDS.

WHAT YOU'RE ALWAYS GOING TO BE CONCERNED ABOUT IS WHAT YOU TELL THE VOTERS YOU'RE GOING TO DO.

AND WHAT YOU'RE TELLING THE VOTERS YOU'RE GOING TO DO IS SOME VERY HIGH LEVEL BROAD ACTIVITY.

AND WHAT YOU SOUGHT A BOARD TO TALK DETAILS AS LONG A FITS UNDER THAT UMBRELLA NO

[01:30:12]

ONE CAN SAY YOU PROMISED ME YOU WERE GOING TO BUILD THIS $6 MILLION FAVT A THIS ADDRESS LOCATION.

BACK IN 2018.

BECAUSE YOU'RE NOT MAKING THAT COMMITMENT RIGHT NOW.

YOU'RE COMMITTING THAT YOU'RE BUILDING CONSTRUCTION.

>> TWO THINGS I WANT TO ADD COMPLETELY CONSISTENT WHAT BOARD DID IN 2004.

SAME APPROACH, SAME EFFECT.

WHAT TONYA POINTED IS THAT THE REAL ISSUE OF HOW MUCH AUTHORITY IS BEING TIED UP FOR A PROJECT LIMITS YOUR ABILITY TO BE FLEXIBLE WITH THE PROJECTS.

LET'S SAY YOU SAID I'M GOING TO SPEND $300 MILLION ON EL CENTRO.

FIND YOU NEED $325 MILLION.

YOU DON'T HAVE AUTHORITY TO DO OTHER $25 MILLION.

VOTERS DIDN'T GIVE IT TO YOU.

YOU SAY IN PROPOSITION, WE'RE ONLY GOING ISSUE 300 MILLION FOR EL CENTRO.

SO THAT'S WHY COLLEGE DISTRICTS COMMUNITY COLLEGE DISTRICTS INDEPENDENT SCHOOL DISTRICTS THIS ONE PURPOSE FOR WHICH THEY ISSUE BONDS.

CONSTRUCTION AND SCHOOL BUILDINGS TO PURCHASE NECESSARY.

DIFFERENT THAN CITY THAT HAS THE ABILITY TO ISSUE BONDS FOR A LOT OF DIFFERENT THINGS.

AND TO GIVE YOU AN XASHL OF ISSUING HERE.

IF CITY WANTED TO FINANCE A PUBLIC SAFETY FACILITY CONSISTING OF POLICE AND FIRE FACILITIES, IF THEY ARE IN ONING AGENCY WOULD APPROVE IT.

IF THEY ARE IN TWO BUILDING YOU HAVE TO HAVE SEPARATE PROPOSITION FOR POLICE AND FIRE BECAUSE THEY ARE SEPARATE PURPOSES.

THAT'S PROBLEM YOU GET INTO YOU VOID.

YOU ULTIMATELY MAKE THAT DECISION A TONYA SE AT THE TIME YOU PROVE BUDGET AND BOND ISSUES.

>> IS THERE ANY STATE REVIEW BY AG OR FINANCE COMMISSION OF OUR AUTHORIZATIONS?

>> THEY WILL WHEN YOU SUBMIT A BOND TRANSCRIPT FIRST TIME YOU SUBMIT UNDER A NEW

ELECTION THEY GET THE PROCEEDINGS >> PREELECTION REVIEW >> ELECTION REVIEW THERE'S NOT, THERE LEFT TO YOU.

>> WHAT WE'RE AT IS LOOKING TO GO FORWARD STEP NUMBER ONE.

ALL THE THINGS FOR FUTURE ARE STILL TO COME.

>> NOW THE ELECTION CODE DICTATES THE DATES BY WHICH YOU CALL ELECTIONS.

YOU'RE TRYING TO HAVE AN ELECTION THE ELECTION DATE UNDER ELECTION CODE IS MADE.

YOU HAVE TO CALL IT NO LATER THAN FEBRUARY 15TH OF THIS YEAR IF YOU CALL IT ON FEBRUARY 16TH, YOU CAN'T HOLD THE ELECTION OR SUBJECT TO CHALLENGES.

SO WE'RE OPERATING UNDER THE CONSTRAINTS OF THE ELECTION CODE BACK IN THE DAY YOU

[01:35:03]

COULD HAVE CALLED THIS MUCH SOONER THROUGH THE DATE OF ELECTION.

BUT ELECTION CODE IS ALL DIFFERENT TIMES.

THAT'S WHY FROM THIS ELECTION THAT DATE IS PRESENTED.

THAT'S TIME FRAME.

IF YOU WERE TO CALL THE ELECTION IN NOVEMBER YOU WOULD HAVE TO FOR NOVEMBER

ELECTION YOU HAVE TO CALL NO LATER THAN AUGUST 22ND >> THERE'S NOTHING ELSE GOING ON IN NOVEMBER THIS YEAR IS THERE?

>> WELL THERE'S NOTHING GOING ON OTHER THAN YOU DON'T KNOW WHAT LEGISLATURE

WILL DO BETWEEN NOW AND >> THAT JUST OCCURRED TO ME.

>> LAST TIME >> 2004 WE HAD A DECISION AT THE FEBRUARY BOARD MEETING TO HAVE AUTHORIZATION AND ELECTION IN MAY.

SAME THING WE DID LAST TIME.

[01:40:22]

>> >> VERY GOOD.

QUESTIONS?

>> WHAT ARE WE LOOKING AT FOR COST OF THE ELECTION?

>>

[4. Discussion and Action Regarding Direction from the Board of Trustees to Staff to Continue Planning and Preparation for a May 2019 Bond Election to Include Preparation of an Order Calling the Election for Consideration at the February Regular Board Meeting and Other Matters Related to Said Election]

AUTHORIZED INSTITUTION OF CONTRACT FOR DALLAS COUNTY ELECTIONS THE OTHER ELECTIONS OBVIOUSLY FIGURE, BUT THERE ARE IN MAY OF 2019 THERE ARE GOING TO BE MULTIPLE MUNICIPAL ELECTIONS CITY COUNCILS OTHER ELECTIONS WE WILL APPORTION OUR COST AMONG ALL OF THOSE ENTITIES.

IF THERE WEREN'T AS MANY LATER DATE ELECTION DATES DIS DISPROPORTIONATE COST >> WE ONLY HAVE ONE IF THERE RUN OFFS THAT WE DON'T PARTICIPATE IN THAT AT ALL.

YEAH.

>> EVERY AVAILABLE POLLING PLACE FOR THOSE THAT

WOULD BE COUNTY WIDE >> RIGHT.

BUT THAT'S, WE'RE GOING TO BE PARTICIPATING WITH A GREAT MANY OTHER ENTITIES IN THIS.

I WOULD ESTIMATE COST WOULD NOT EXCEED A MILLION DOLLARS.

>> I'M CLOSER TO 500,000.

>> CHEAPER TO DO IT IN MAY THAN NOVEMBER.

>> ABSOLUTELY.

BECAUSE OF NUMBER OF PARTICIPANTS.

WE'VE REACH UD OUT WITHOUT COMMITTING THIS BOARD TO DALLAS COUNTY ELECTION AND WE WILL HAVE THOSE DISCUSSION WITH THEM ABOUT BEING PARTICIPATORY IF WE GO FORWARD IN MAY.

>> I HAVE SOME QUESTIONS THAT I HAVE SOME INPUT.

EXCUSE ME.

MY EYES ARE FAILING.

WE'RE TALKING ABOUT GOING TO OUR MAXIMUM DEBT LEVEL JUST FOR YOU U WELL, LET ME PUT IT A DIFFERENT WAY.

YOU'RE TALKING ABOUT MAXIMUM DEBT LEVEL JUST ON THE BONDS OF WHAT WE'RE ALLOWED.

ONE THING I WOULD POINT OH TRUSTEE COMPTON WE'RE TALKING ABOUT STAYING A CURRENT DEBT LEVEL.

I THINK JOHN TALKED ABOUT YOUR MAXIMUM DEBT LEVEL IS $0.50.

WE'RE $0.10.

WE WOULD STAYING $0.02 >> I'M TALKING ABOUT DOLLARS.

WELL LET ME SAY THIS THEN YOU CAN FIGURE LET ME CHANGE WHAT I'M TRYING TO FIGURE OUT.

DOING 1.1 BILLION IN BONDS OUR CURRENT DEBT TO PAY THAT OFF AND WE'VE GOT TO GO TO 2030, TO 263.5?

>> PRINCIPLE AND INTEREST, YES, MA'AM >> AM I FORGETTING ANYTHING ELSE THAT WE OWE? I'M LOOKING FOR WHAT WOULD OUR TOTAL DEBT BE AT ANY GIVEN TIME IF WE DO ALL OF

THIS STUFF >> I'D HAPPY TO GIVE THAT TO YOU WE CAN DO WITH ASOME ASSUMPTIONS IT'S BURIED IN HERE BUT WE COULD SPLIT IT OUT EASIER AS WE'RE PAYING OFF THIS DEBT AND AS WE'RE ADDING NEW DEBT, AGAIN, WHEN YOU ADD DEBT YOU ADD MULTIPLE YEARS.

SO, SOON AS WE PASS ONE YEAR WE PAID OFF ON MATURITY.

OR POSSIBLY PAID OFF MATURITY.

PAST FIVE YEARS.

>> DISTRICT GOING TO ISSUE $200 MILLION A BONDS A YEAR.

YOU'RE GOING TO STAGGERED IN MA CHOOURTS.

>> NO, I'M I UNDERSTAND ALL ALL OF THAT.

IN 2004 WHEN HE SPOKE BEFORE, I LEARNED ALL OF THAT TOO.

I GOT SOMETHING ABOUT THAT.

AND SOME OF IT IS BASED ON EXPERIENCE AND WHAT I WATCHED HAPPEN.

MY QUESTION AND I'M WHAT I'M TRYING TO FIND OUT FOR THE NEXT, FOREVER HOW MUCH IN DEBT WILL WE-- AND THIS IS BASED ON ESTIMATES AND WHAT'S BEEN PRESENTED.

HOW MUCH IN DEBT DO WE HAVE FOR HOW MANY YEARS TOTAL?

[01:45:08]

THAT'S WHAT I'M TRYING TO FIGURE OUT.

OKAY?

NUMBER 2, CAN I FINISH ALL OF MY QUESTIONS 0 OR SOMEBODY HAS INPUT >> LET'S FEW OP YOUR QUESTION BECAUSE I THINK IT PORN.

>> THERE WILL BE A PERT TIME WHEN 2004 AUTHORIZATION BONDS OUTSTANDING WITH THAT WILL OVERLAP WITH THIS AUTHORIZATION THAT WE ARE CONTEMPLATING TODAY.

AND NOW CORRECT?

BECAUSE YOU SAID >> YES, SIR.

>> AT NO POINT IN TIME WHEN THEY OVERLAP WILL WE NEED TO INCREASE OR TAX RATE ABOVE

$0.02 IS THAT CORRECT >> BASED ON OUR ASSUMPTIONS BUT NOT GUARANTEES >> ABSOLUTELY

>> IN THE NEXT TWO YEARS, 102 MILLION OF YOUR CURRENT DEBT IS RETIRED.

>> BUT WE'RE ADDING.

SO BASICALLY >> IF THE ELECTION IS PASSED YES WE WOULD ADDING.

>> NO I UNDERSTAND ALL OF THAT.

BUT EVEN THOUGH WE'RE PAYING IT OFF, WE'RE CONSTANTLY ADDING TO.

OKAY.

>> CORRECT.

>> SO WHEN DO WE EVER SAY THAT WE'RE DEBT FREE? AND THAT'S JUST WHY I SAID FOREVER.

>> THAT'S A FAIR QUESTION.

I'LL GIVE YOU GOOD EXAMPLE.

>> THEY PAID ALL THERE DEBT OFF THEY'VE FINANCED ALL OF THEIR IMPROVEMENTS WITH INTERNAL FUNDS.

THEY ARE REGRETTING IT.

BECAUSE >> I'VE HEARD THAT TOO >> THEY DON'T TAKE ADVANTAGE OF HISTORICALLY LOW INTEREST RATES TO FUND SOME CAPITAL PROJECTS THEY HAVE.

THEY ARE HAVING THESE SIMILAR DEBATE TO WHICH YOU'RE HAVING ABOUT MAYBE CALLING A BOND ELECTION IN NOVEMBER.

THEY COME TO REALIZE WE HAVE SAME NEEDS THAT IS COLLEGE DISTRICT HAS WE DON'T HAVE CASH CASH TO PAY FOR IT WE NEED TO BORROW THE CASH.

YES YOU CAN FUND ALL OF THIS OUT-OF-POCKET IF YOU HAVE IT.

BUT THAT COULD VERY WELL BE THE AT LEAST ECONOMIC WAY TO PROCEED.

>> WELL WE KNOW THAT WE DON'T.

AND, I HEARD ALL OF THIS STUFF ABOUT FORT WORTH CAN AND WHAT THE DEBATE IS I HAD COME TO CONCLUSION I SAID THIS, THAT WE NEED TO PAY SOME OF IT AS WE GO.

BUT THAT WAS THINKING BUT U LET ME SAY THIS, AND IT SPEAKS TO WHAT PHIL SAID AND WHY I ASKED FOR THIS INFORMATION RIGHT HERE.

AND I APPRECIATE THE APPROACH THAT YOU USED.

IN YOUR PLANNING AND SO FORTH.

BUT WHAT WE DID, AND WE DID THIS BEFORE, WE DID A MASTER PLANNING PROCESS.

WE RECEIVED INPUT FROM THE PUBLIC IN THOSE COMMUNITIES WHERE THE FACILITIES WERE LOCATED.

OKAY.

AND BASED ON THEIR INPUT, THE COLLEGE, YOU KNOW, AND PEOPLE WHO REPRESENTED THAT AREA, WE CAME UP WITH A LIST OF PROJECTS, OKAY.

WE DIDN'T DELIVER ON THAT.

I STILL HAVE PEOPLE ASKING ME TODAY, Y'ALL NEVER DID THIS.

YOU NEVER DID THAT.

AND JUST A GENERAL STATEMENT IS THAT WE'RE SAYING APPROVE 1.5 BILLION, AND TRUST US.

BUT THEY NEVER GET ANYTHING ON THE SHORT LIST THAT YOU GOT.

BUT, EACH QUADRANT, I DON'T LOOK ALT IT AS NORTH AND SOUTH.

WE HAVE COMMUNITIES THROUGHOUT DALLAS COUNTY AND THEY ALL HAVE NEEDS AND THEY ALL HAVE THEIR OWN PRIORITIES.

WE'RE TALKING ABOUT $1.5 BILLION AND OVER HALF OF THAT IN DOWNTOWN DALLAS.

VERY LITTLE FROM WHAT I ADDED UP I'M NOT EVEN SURE THIS IS CORRECT SINCE WE'VE GOT A NEW PRESENTATION OF JUST WHAT WAS ON THIS LIST OF PROPOSED BOND PROJECTS.

I DON'T THINK, UNTIL I SEE THE LIST THIS GETS ANYWHERE NEAR WHAT CAMP US AND THOSE COMMUNITIES IDENTIFIED AS THEIR PRIORITIES AND WHAT AND WHAT THEY WANTED.

EACH SEGMENT OF THE CITY, THERE NEEDS TO BE SOME EQUITY IN HOW THE DOLLARS ARE SPENT AND NOW EACH COMMUNITY IS ADDRESSED.

IN MY ESTIMATION YOU CAN'T TAKE OVER HALF OF THE $1 BILLION AND PUT IT IN

[01:50:01]

DOWNTOWN DALLAS AND SKIMPING ON THESE OTHER COMMUNITIES.

NOW WHERE IT BECOMES INTERESTING TO ME, YOU TALK ABOUT THOSE PORTABLE BUILDINGS, IS, WHAT IS OUR DEBT LEVEL FOR NEXT FOREVER YEARS? THE OTHER PROJECTS AND WANTS AND SO FORTH THAT HAVE BEEN IDENTIFIED BY CAMPUSES AND THEIR COMMUNITIES, THEY MAY NEVER GET DONE.

ONCE AGAIN.

AND I'M TALKING ABOUT THAT BASIC LOCAL PLAN.

OR WHEN DO THEY GET DONE? BECAUSE WHEN I LOOKED AT YOUR DISTRIBUTION BOND SALES AND SO FORTH, OKAY, JUST FROM THIS LIST, WHAT GETS BUILT FIRST? WHO GOES FIRST.

WHAT DO THEY GET, IS IT NEEDED AND SO FORTH.

THOSE OF SOME OF MY CONCERNS.

NOW, YOU BROUGHT THIS UP CHILD CARE CENTER.

MOUNTAIN VIEW IS IN HERE NOR A CHILD CARE CENTER.

MY CONCERN WAS THAT WE'RE TALKING ABOUT NEW CONSTRUCTION.

WE'RE NOT IN THE CHILD CARE BUSINESS.

I GAVE THIS LIST YOU GAVE AND SAID SOMETHING ABOUT STUDENT SERVICES.

WE'RE NOT LANDLORDS.

CHILD CARE IS AN ISSUE FOR EVERY ONE OF OUR FACILITIES.

SO IF WE'RE GOING TO DO A CHILD CARE CENTER AT MOUNTAIN VIEW, WHY ARE WE NOT ADDRESSING THAT ISSUE DISTRICT WIDE? BUT LIKE I SAID, MY THING IS ABOUT EQUITY AND MAKING SURE WE ADDRESS THE ISSUES IN ALL FOUR QUADRANTS OF THE COUNTY.

OKAY? I THINK THAT'S IN A NUTSHELL WHAT I'M TALKING ABOUT.

BUT, THESE OTHER PROJECTS, WHEN DO THEY GET BUILT AND WHEN DOES SOME OF THIS OTHER STUFF HAPPENED.

FOR RECORD I WASN'T HAPPY ABOUT IT IN 2004 WE WENT OUT ADVERTISED AND PROMISED THE PUBLIC AND DHEES THESE COMMUNITIES THIS WAS GOING TO HAPPENI WASN'T HAPPY ABOUT THAT.

BUT WE LEFT IT TO THE COLLEGE PRESIDENTS TO MOVE THEIR ALLOCATION AROUND BECAUSE OUT OF RICHLAND THEY INVESTED ALL OF THEIR MONEY IN SCIENCE ASK TECHNOLOGY BUILDING.

WITHOUT DOING SOME OF OTHER STUFF THAT WAS PROMISED TO THE COMMUNITY.

YOU GO OUT TO PUBLIC AND TAXPAYERS THAT YOU'RE GOING TO DO X, Y AND Z AND YOU SUPPORT HUE AND GIVE YOU THEIR MONEY I THINK THEY ARE SUPPOSED TO DO X, Y AND Z.

GO AHEAD.

>> I AGREE WITH A LOT OF THAT YOU GAVE US A HANDOUT HERE.

WE GO, I MEAN, SPECIFIC LIST OF PROJECTS THAT DEFINE WHAT INTEREST LINE WORK FORCE PROJECTS LOOK LIKE.

AND DEFINE WHAT STUDENTS TEST PROJECTS LOOK LIKE.

AND, YOU KNOW, WE'RE DOING NETWORK PLANNING NETWORK IS THE COMPILATION OF OUR NODES.

OUR NODES ARE SEVEN DIFFERENT CAMPUSES.

AND YOU KNOW I THINK THAT, YOU KNOW, YOU CAN RELATIVELY SHORT ORDER BRING US BACK A PICTURE OF HOW THIS PLAYS OUT AT EACH CAMPUS.

AND THOSE ARE, AND THOSE INFORM THE BOARD AT THIS STAGE PLANNING PROCESS CLEARLY ANABLELIZATION, WHAT IT LOOKS LIKE TODAY WITH DISCLAIMER FOR FUTURE.

TELL YOU ONE THING WE WILL NOT GET ANYTHING ANY OF THIS DONE, ANY OF IT IF WE DON'T GET AN AUTHORIZATION.

THAT'S PHASE WE'RE AT NOW.

NONE OF THIS WILL HAPPEN UNLESS WE ASK VOTERS OH BUY INTO VISION WE'VE GOT FOR THIS.

AND IT'S A GOOD ONE.

FULLY SUPPORTEDED WE DO NEED TO PAINT GRANULAR.

YOU GOT THE DATA.

YOU KNOW YOU GOT IT.

JUST LIKE, ORGANIZING DIFFERENT WAY.

I TAKE THAT VERY SERIOUSLY.

WHAT WE LOOK AT TRYING TO PROPOSE HERE THE IDEA OF AUTHORIZATION TWO THINGS MAINTAIN $0.02 TAX RATE.

CAN I PROMISE? NO I DON'T KNOW WHAT FUTURE HOLDS.

SECOND PART OF THAT IS, LOOKING BY STRATEGIC PRIORITIES IS WHAT BUCKETS DO THESE GO IN.

IF YOU GO OUT AND START TALKING ABOUT INDIVIDUAL ITEMS PROBABLY WHERE WE MADE MISTAKE IN 2004.

[01:55:01]

WHEN YOU GET DOWN TO SELLING BECAUSE YOU CAN'T PROMISE THAT MR. RITTER ALL WE CAN DO SAY WE NEED AUTHORIZATION TO DO THESE, WHAT, I CAN'T PREDICT THE FUTURE OF COST

AND INTEREST RATES AND TAX VALUES >> WHAT WE'RE DISCUSSING IS NATURE OF THE COMMITMENT AT THE AUTHORIZATION PHASE.

AND YOU KNOW >> CORRECT.

>> AND I THINK THE WHAT THE BOARD OUGHT TO THINK ABOUT IS SAYING, HEY THESE ARE TYPES OF PROJECTS SHOULD VOTERS APPROVE THAT COULD ENABLED BY THIS AUTHORIZATION.

WILL THEY CHANGE GO ON NETWORK SYSTEM WIDE PLANNING LEVEL, YOU KNOW TO MAKE SURE WE DON'T WASTE TAXPAYER MONEY YOU BET WE ARE.

AND THIS COULD CHANGE IN THIS PHASE THIS WHAT WE ENVISION HAPPEN AND EACH KEY NOTES IN OUR NETWORK.

WE HAVEN'T SEEN THAT TODAY.

BUT I THINK YOU CAN PUT IT TOGETHER FOR US.

>> BUT, IF YOU'LL REMEMBER IN PAGES 7, 8, AND 9, THAT WHERE THOSE BUCKETS ARE.

AND THEN OVERLAY OF THE MAP IS ALSO SHOWING WHERE IT'S DETERMINED THAT THE NEEDS HAVE BEEN AND REMEMBER, THAT THE COLLEGES TOOK A VERY SUBJECTIVE RIGHTFULLY SO LOOK AT WHAT THEY SAID THEIR THEY NEEDED AT THEIR LOCATIONS.

BUT HOW DID IT GET INTO THE BOARD'S STRATEGIC PLAN AND STRATEGIC PRIORITIES WHEN COLLIER'S CAME IN TO TAKE THAT OBJECTIVE LOOK AND I DIDN'T REALIZE COLLIERS HAD INVOLVED THE PRESIDENT, VICE-PRESIDENT AND INSTRUCTIONAL STAFF IN TERMS OF COMING UP WITH THAT OBJECTIVE LOOK, AND THAT'S HOW THESE DIFFERENT BUCKETS WERE ESTABLISHED.

WHERE AS THE CHANCELLOR SAID EARLIER, WHEN THE COLLEGES CAME UP WITH THEIR PLANS THERE WAS LOT DUPLICATION INVOLVED.

SO THAT'S WHERE BRINGING COLLIERS HELPED THEY WERE TASKED WITH LOOKING AT IT FROM THE BOARD'S STRATEGIC PRIORITIES.

AND STWOVRL INVOLVING COLLEGE PRESIDENTS, VICE-PRESIDENTS AND INSTRUCTIONAL STAFF TO LOOK AT THEIR MASTER PLANS BUT THROUGH THAT LENS NOT THROUGH THE COLLEGE LENS SO THAT WE GET AWAY FROM EVERYONE WANTING AN ADVANCE THE MANUFACTURING CENTER.

WE GET AWAY FROM EVERYONE WANTING A CONSTRUCTION EDUCATION CENTER BECAUSE WE CAN'T AFFORD IT.

IT HAS TO TIE INTO OUR STRATEGIC MASTER PLAN AND THE NETWORK APPROACH.

WHICH IS WHAT THIS BOARD HAS SAID WE WANT TO DO.

BUT IF WE GO BACK AND WANT IT COLLEGE BY COLLEGE BY COLLEGE, THEN, WE'RE NOT GOING BY THE STRATEGIC MASTER PLAN WHICH IS THE WHOLE EXERCISE TO DO TOGETHER WITH THE REPRESENTATIVE HEECH OF THE COLLEGE FROM EACH OF THE

COLLEGES >> WE START TWO YEARS BOTTOMS UP PLANNING PROCESS AND INDIVIDUAL CAMPUS MASTER PLANS THEY WERE BROUGHT TO THIS BOARD.

THAT WAS, BROUGHT UP CAN AND COLLIERS WAS HIRED THIS BOARD WE SAW CRITERION TO BE DEVELOPED THOSE CRY CRITERION WERE AND STRATEGIC GOALS OF THE BOARD.

WE WENT TWO BILLION TO ONE BILLION.

THAT'S WHAT EMERGENCY LOOKING A IN FORMING TOTAL BOND HERE.

ONE ADDITIONAL STEP I THINK THIS IS WHAT TRUSTEE COMPTON IS SUGGESTING I KIND OF THINK IT WOULD BE GOOD TO DO IS TO HAVE ONE MORE ITERATIVE PROCESS GIVEN THAT RATIONALE THAT HAS TAKEN PLACE, IN HOW WILL THAT PLAY OUT AT EACH COLLEGE.

BECAUSE THESE, YOU KNOW THE NETWORK IS NO HE MORE NOWS PIE IN SKY NOBODY EVER SEES THESE ARE INVESTMENTS WILL BE AN IN OUR CAMPUS ASSETS.

LET'S GET AT LEAST AN IDEA OF WHAT THAT LOOKS LIKE.

>> NOW PAGE 18 WOULD, TAKE A LOOK THERE IF YOU WOULD AND SEE IF THAT, IF THAT WAS THE INTENT.

I'VE ONLY GOT 16.

>> OH.

GO AHEAD.

>> THAT WHAT IS I WAS LOOKING A THE >> THAT WAS CURRENT LIST.

THAT WHY I WANT EACH LIST BY EACH CAMP US AND TOTAL AMOUNT OF DOLLARS.

BECAUSE I WENT THROUGH AND I GOT BROOKHAVEN WAS ON THIS PROJECT LIST ONLY.

PAGE 18.

$66 MILLION TO BROOKHAVEN.

$108 MILLION TO,81 TO HE ISVILLE.

95 MILLION TO MOUNTAIN VIEW.

50 MILLION TO NORTH LAKE.

88 MILLION TO RICHLAND.

DISTRICT 210 MILLION.

EL CENTRO IS ON HERE FOR $227 MILLION.

THEN YOU GOT TWO DOWN HERE, AND IT ADVANCED TECHNOLOGY INNOVATION CENTER AND A WORK FORCE DEVELOPMENT BUILDING FOR $77 MILLION.

[02:00:01]

BUT YOU'RE, LET ME BE CLEAR ON THAT, YOU'RE TALKING ABOUT ONE BUILDING, RIGHT?

CENTRALLY LOCATED >> WE HAD MULTIPLE LOCATIONS ASKING FOR SIMILAR THINGS.

SO AT THIS POINT, WE DID NOT WANT TO MAKE A COMMITMENT WE HAVEN'T DECIDE OR GONE

THROUGH PROCESS OF WHO IS BEST TO SERVED TO GET THAT BUILDING >> AND I UNDERSTAND THAT.

BUT THAT'S WHAT I THOUGHT THIS WAS SAYING >> I WOULD LIKE TO ALSO SAY ON THIS LIST WHAT I TRIED TO DO IS IN WHEN I BUILT THIS LIST WAS TAKE THE PROJECTS THAT THEY HAD, BUT MANY TIMES I TOOK THE INFRASTRUCTURE IMPROVEMENTS AND I ADDED THEM TO THE BUILDING.

SO I, I'VE MADE THIS DOWN TO A ONE PAGER BY PULLING THINGS TOGETHER.

BECAUSE INFRASTRUCTURE HAS TO BE DONE TO SUPPORT THAT BUILDING.

BUT INFRASTRUCTURE DOESN'T SELL IN THE PUBLIC.

IF THAT'S A BUILDING THAT'S BEING BUILT TO SUPPORT EARLY COLLEGE HIGH SCHOOLS, AND THEY NEED CHILLED WATER CAPACITY TO GET TO THAT BUILDING I BUILT THAT CHILL WATER INFRA STRUCTURES INTO BUILDING COSTS SO I HAVE TAKEN THIS LIST AND MADE I BELIEVE AN EASIER TO READ LIST THAN WHAT YOU WILL SEE GOING THROUGH DETAIL OR FOR PUBLIC INFORMATION.

BUT I WOULD REALLY SAY THIS LIST WHICH IS DEFINED A WORKING PAPER, AT THIS POINT, WE CAN STILL HAVE SOME DISCUSSION ON WHERE THESE NUMBERS GO.

I LIKE THE BUCKETS.

I DON'T THINK WE'VE DONE THAT BEFORE.

BUT AS LARGE AS THIS ISSUE IS, I THINK WE TO HAVE THAT FLEXIBILITY OF WE'RE NOT GOING DOWN TO BUY LAND BUILD NEW BUILDING AND RENOVATE BUILDINGS THAT'S TOO GENERAL.

BUT THAT'S WHAT WE DO WITH THE STATE.

THAT'S WHAT WE TELL THEM WITH THE STATE.

BUT WHAT WE HAVE TO DO WHEN WE'RE GOING OUT TO SELL THIS BOND, IS WHAT DOES THE, WHAT DO THE VOTERS WANT US TO DO.

I THINK PROMISING INDIVIDUAL PROJECTS AT THIS TIME IS THE WRONG THING TO DO.

>> I HEAR WHAT YOU ARE SAYING, BUT I WANT TO REMIND EVERYONE THAT OVER THE LAST YEAR AND A HALF WE SAT THROUGH SEVEN DIFFERENT COLLEGE MASTER PLAN PRESENTATIONS.

WE WENT THROUGH SEVEN DIFFERENT COLLEGE STORES I WENT TO 6 SEVEN I DIDN'T MAKE MOUNTAIN VIEW.

BUT EVERY COLLEGE HAD DIFFERENT NEEDS.

AND SO FOR EXAMPLE, NORTH LAKE COLLEGE, WHICH I BELIEVE IS NEWEST COLLEGE, RIGHT? THEY TOLD US WE DON'T REALLY NEED MORE SPACE.

YOU KNOW, IT'S MORE ABOUT UTILIZATION HOW WE MOVE IT AROUND WE SAW THAT CONSTRUCTION BUILDING THAT REALLY NEEDED ATTENTION.

AND THAT'S WHAT THEY ARE GETTING.

THEY ARE GETTING CONSTRUCTION BUILDING BECAUSE OBVIOUSLY THAT'S WHERE THERE'S A BIG NEED, IF HAVE THEIR BIG DEMAND THEY NEED TO WORK.

THEN WE SAW EL CENTRO, YOU KNOW NOT JUST TOUR BUT PRESENTATION.

IT'S OUR OLDEST BUILDING AND NEEDS THE MOST ATTENTION.

SO TO ME THE NUMBERS MAKE SENSE.

BECAUSE EACH CAMPUS IS UNIQUE AND HAS ITS DIFFERENT NEEDS.

I MEAN WE'VE DONE A YEAR AND A HALF OR LONGER FOR Y'ALL THAT WE'VE SEEN.

SO I DON'T KNOW IF YOU KNOW, PHIL MENTIONED ANOTHER MEETING.

I MEAN WE'VE HAD SEVERAL MEETINGS.

WE'VE BEEN GIVEN THE INFORMATION.

AND THIS MAKES SENSE TO ME.

>> WELL IF I MIGHT, FOR SAFETY AND SECURITY OF THE STUDENTS AT RICHLAND I WOULD LIKE TO SEE TEMPORARY BUILDINGS GO AWAY.

I DON'T KNOW THAT 88 MILLION IS GOING TO BE WHAT WE NEED FOR SPACE FOR ALL OF THOSE BUILDINGS.

AND INCORPORATE IN SOMETHING ELSE TO ALLOW FOR SOME EXPANSION IN ATTENDANCE.

AND ENROLLMENT IF WE GET ANY MORE ENROLLMENT I DON'T KNOW THAT 88 MILLION IFFIST DEDICATED TO EARLY COLLEGE HIGH SCHOOLS, IF THAT'S ALL WE PUT IN THERE.

FOR 88 MILLION I'M NOT SURE THAT TAKES CARE OF THE SAFETY AND SECURITY OF THOSE PORTABLE BUILDINGS.

THAT HAVE TO BE EVACUATED EVERY TIME THERE'S AN WEATHER THREAT.

2004 SAW THE TEMPORARY BUILDINGS STILL THERE.

AND NOW 15 YEARS LATER WE STILL HAVE TEMPORARY BUILDINGS.

I WAS MOST IMPRESSED WITH ONE THAT DIDN'T HAVE BATHROOM FOR NIGHT CLASSES PEOPLED THAT THOOD LEAVE IN DARK TO GET TO BATHROOM.

SAFETY AND SECURITY IS ENGINE SOMETHING WE NEED.

I DON'T KNOW THAT $88 MILLION, IF IT'S DEDICATED TO EARLY COLLEGE HIGH SCHOOL, PERIOD, I DON'T KNOW THAT THAT MAKES, I DON'T KNOW THAT MAKES GOOD SENSE.

WE NEED LOT MORE THAN THAT.

IF I RECALL CORRECTLY TEMPORARY BUILDING WAS USED FOR EARLY COLLEGE HIGH

[02:05:01]

SCHOOL STUDENTS COLLEGIATE HIGH SCHOOL STUDENTS.

THAT'S WHERE THEY ATE AND STUFF WHERE >> THEY WERE GETTING 88 MILLION FOR THE COLLEGIATE HIGH SCHOOL.

>> SEVEN IN FOR THOSE TO GO AWAY THAT UP BOARD TO MAKE DECISION TO DO THAT >> I AGREE WITH THAT TRUSTEE ZIMMERMANN.

YOU'VE BEEN ON THE TOURS.

WE'VE GOT MORE NEEDS THAN I'VE GOT POCKET BOOK.

AWAY A.

SOURCES OF A FUNDS TO DO THIS.

PLUS NOT RAISE A TAX RATE >> EXACTLY.

>> IT'S A DIFFICULT POSITION, YOU KNOW WE COULD AFFORD THE 1.5 BILLION, WOO GO OUT 30 YEAR'S ON EVERYTHING.

TAX RATE GOES TO 2.15 CENTS.

THAT'S NOT BAD.

2.15.

WE CAN AFFORD IT.

WITH EIGHT YEARS OF ISSUANCE.

IT STARTED REACHING THE THRESHOLD, THEY CAN DO.

I GOT UNCOMFORTABLE WITH.

IF I CAN'T BE COMFORTABLE WITH IT I CAN'T STAND IN FRONT OF THIS BOARD AND SAY HERE'S THE PLAN THAT I CAN SUPPORT WITHOUT HAVING THT IDEA OF THE FINANCIALLY IT'S NOT TYING THE HANDS, WE WOULD HAVE TO -- WE GOT DOWN TO LEVEL WE FEEL WORKABLE VERY SIMILAR TO WHAT WE'VE DONE BEFORE AND STILL AFFORDABLE FOR TAXPAYERS AND NOT WHAT IS SO, HOT QUITE FRANKLY THAT WE CAN'T, YOU KNOW IT TAKES US FOREVER TO GET OUT OF.

>> I WANT TO REITERATE ONE POINT.

YOU'VE GOT A GOOD, YOU KNOW, A GOOD POINT THAT YOU'RE MAKING.

AND WE HAVE TO GO OUT AND TALK TO TAXPAYERS.

WE HAVE TO SAY, THIS IS WHAT YOU'RE GETTING FOR THIS.

AND IF WE GET TOO SPECIFIC WE BOXED OUR SELVES INTO A PLACE WE CAN'T GET OUT OF.

THIS IS A TEMPLATE.

IT'S AN IDEA.

IT'S A CONCEPT BASED ON THE THREE CRITERIA THAT YOU PUT FORTH.

IT'S NOT A COLLEGE CAMPUS SPECIFIC PLAN.

BUT WE HAVE EVERY SINGLE TIME A PROJECT COMES UP THE ABILITY TO VOTE ON WHETHER WE WANT TO DO THAT OR NOT DO THAT.

IF THINGS WERE PROMISED THAT DIDN'T GET DONE IN THE PAST, THE BOARD MADE A DECISION WHATEVER THAT PROJECTS CAME UP TO DO WHATEVER THEY DID AS OPPOSED TO WHAT MAYBE THEY SHOULD HAVE DONE OR COULD HAVE DONE.

SO THAT'S THE THING I AS I LOOK AT THIS YEAH I HAVE SOME QUESTIONS ABOUT THE THINGS HOW MUCH MONEY SPENT ON DISTRICT AND HOW MUCH MONEY IS BEING ALLOCATED.

BUT NOT GOING TO BE AN ALLOCATION.

IT'S A PIE THAT'S BEING DIVIDED CONSTANTLY.

AND BEING COME UP WITH AN IDEAS THAT TOMORROW WE MAY HAVE HAD WHOLE DIFFERENT NEED.

WE MAY HAVE SOMETHING, YOU KNOW A YEAR FROM NOW THAT WE HAVEN'T EVEN THOUGHT OF.

SO THE AUTHORIZATION IS JUST SIMPLY TO, TO COME UP WITH A POOL OF MONEY THAT WE CAN THEN MAKE FUTURE DECISIONS ON.

BUT WE'VE ALREADY AUTHORIZED THE DISTRICT TO HAVE THE ABILITY TO USE THAT MONEY WHERE WE NEED TO USE IT OR MOST URGENT NEED IS AT THE TIME WE MAKE THE DECISION TO VOTE ON THE PROJECTS.

SO I'M COMFORTABLE WITH THIS.

ONLY BECAUSE, YOU KNOW TO ME IT'S NOT REALLY MAKING A DECISION.

IT'S JUST SAYING, YOU HAVE THE OPPORTUNITY NOW THAT YOU'VE AUTHORIZED THAT WE DO THIS TO COME UP WITH EACH EVERY PROJECT AND THEN BE VOTED FOR.

I WISH IT COULD BE $999 MILLION.

THAT'S EASIER THAN 1.1 BILLION TO TRY TO COME OUT >> WE CAN CHANGE THE NUMBERS.

>> SO, BUT, THEN BY SAME TOKEN, THERE ARE DELAYED NEEDS THAT NEED TO BE MET.

THERE ARE THINGS WE PUT OFF.

THERE'S ENVIRONMENT TODAY IS NOT ANYTHING LIKE IT WAS IN 2004.

THE NEEDS THAT WE HAVE TODAY DON'T EVEN COME CLOSE TO WHAT WE HAD.

WE ALSO HAVE THE ABILITY RIGHT NOW TO TAKE ADVANTAGE OF THE TAV WITH ALL MULTIPLE FUNDING SOURCES.

IT IS AN OPPORTUNITY TO MAKE SOME OF THESE DECISION.

SO I, I LIKE THE CONCEPT I LIKE UTILIZING NETWORK APPROACH AS OPPOSED TO TRYING TO GO, YOU DIDN'T GET THIS MUCH AS I GOT I SHOULD HAVE GOTTEN THAT.

BECAUSE WE CAN ALWAYS MAKE THAT DECISION LATER.

AND THAT'S THE KEY HERE THAT IS WE'RE NOT MAKING THIS SHEET REALLY MEANS NOTHING OTHER THAN IT WAS USED TO COME UP WITH A TOTAL NUMBER THAT WE THINK WE'RE GOING TO

NEED >> TRUSTEE COMPTON >> AND WHAT I'M TELLING YOU, WHAT I'M SAYING, IS THAT I THINK THAT CAN A LITTLE BIT MORE EQUITABLE.

AND, BECAUSE I KNEW I KNOW YOU'RE ALL TIRED OF IT.

DON'T SEND ME OUT IN LINE WITH TAXPAYERS SO THAT I HEAR THAT UNTIL THEY PUT ME IN THE GROUND ABOUT WHAT YOU'RE TOLD ME AND YOU DIDN'T DO FOR MY TAX

[02:10:04]

DOLLARS.

SO ME, IT WOULD BE MORE HONEST TO GIVE THEM A LIST AND SAY THIS IS WHAT WE ARE CONSIDERING DOING.

WE'RE ASKING YOU TO TRUST US WITH YOUR 1.1 BILLION.

DON'T SEND ME OUT IN THE LINE TO TAXPAYERS.

AND, LIKE I SAID, YOU KNOW, HEY, I UNDERSTAND THE NEEDS.

I UNDERSTAND DUPLICATION.

AND YEAH, THAT NEEDS TO BE ADDRESSED.

BUT SOME THINGS THAT ARE ON THESE CAMPUS LIST, THAT'S NOT ON OUR LIST.

AND WHAT I'M AFRAID OF IS THAT WE START BORROWING ALL OF THAT MONEY AND EVERY TIME WE PAY SOMETHING OFF JUST WHAT YOU ALL GOT ON THE SHORT LIST AND WE BORROW SOME MORE MONEY, WHEN DO THESE OTHER THINGS GET ADDRESSED?

>> WHEN WE RAISE THE TAX RATE >> YEAH.

AND SEE WHAT YOU TELLING THEM NOW WE RAISING YOUR TAX RATE.

THEY HEAR YOU COME BACK.

BUT THAT'S MY CONCERNS.

I'M THROUGH WITH IT.

>> WHEN WE RAISE TAX RATE WE CAN GO MORE THAN 88 MILLION AT RCHD COVER $2 BILLION, GO $0.50.

SETS, ET CETERA.

AND FULFILL EVERYONE'S WISHES AND EVERYONE'S DREAMS AND REALITIES.

ANYWAY.

AS FAR AS EL CENTRO, YES THAT DOES TAKE HALF.

BILL HAS COME TO YOU PREVIOUS BOARDS, NEVER, NEVER, NEVER TOOK CARE OF EL CENTRO IT IS WAY EL CENTRO NEEDED TO BE TAKEN CARE OF BECAUSE THE LAND LOCK NATURE OF THAT CAMPUS.

SO FROM MY POSITION, THE BUILDINGS COME DUE ON EL CENTRO.

WE NEED TO PROVIDE ADEQUATELY, FINALLY FOR THAT CAMPUS AND TALK ABOUT EQUITABLE.

THAT'S ALWAYS BEEN UNEQUITABLE FOR DAY ONE WHAT EL CENTRO AND THAT STAFF AND STUDENTS HAVE TO CONTEND VERSUS WHAT OTHER CAMPUSES HAVE HAD THE LUXURY OF THAT THIS CAMPUS HAS NOT.

THE BILL HAS COME DUE HOPEFULLY THIS BOARD THAT WILL PAY THAT BILL.

>> I THINK HOW MUCH WE SPENT AT EACH 7 LOCATIONS I MEAN, I SUPPORT RECOMMENDATION ON EL CENTRO BECAUSE OF THE CHANGING NATURE OF THE URBAN FORM OF DALLAS.

AND FACT THAT DOWNTOWN HAS BECOME A MUCH MORE VITAL AREA THAN IT EVER HAS.

THE FACT THAT STUDENTS ALL OVER COUNTY CAN REACH EL CENTRO IN MASS TRANSIT.

SO, IT'S, WORTH, WORTH DOING IT.

WORTH DOING IT AT THE LEVEL PROPOSED.

>> OKAY.

SO THE WE'RE ALMOST COMING UP ON THE TIME THAT WE HAVE ALLOTTED TO THIS.

I HOPE EVERYONE'S QUESTION HAVE GOTTEN ANSWERED TO AN EXTENT.

IF NOT >> I WOULD LIKE TO THANK MY GUESTS HERE TODAY PUBLICLY.

I REALLY APPRECIATE THEM AND ALL THE WORK.

THEY ARE NOT BEING PAID.

IF WE NEVER ISSUE BONDS THEY NEVER MAKE A CENT.

SO I APPRECIATE ALL THE WORK THAT THEY PUT IN.

YOU WOULD BE SURPRISED HOW I GET THIS WORK AND STUFF AT NIGHTS AND ON THE WEEKENDS FROM PEOPLE.

JEFF OH TONYA I GET RESPONSES TO WITHIN 15 MINUTES TO ALL MY PETTY QUESTIONS I HAVE AND BOB ALWAYS COMES UP WITH GREAT IDEAS TO SAVE ME MONEY.

SO I JUST REALLY WANTED TO SAY PUBLICLY I APPRECIATE THIS TEAM.

AND WE REALLY ENJOYED WORKING WITH Y'ALL.

AND REALLY SOMETHING TO OUR BOND RATING.

WHEN WE, WHEN THEY'VE SEEN CONTINUITY OF PEOPLE WE'VE WORKED WITH.

JUST LIKE THEY DO WITH AUDITORS THAT IF YOU'RE CHANGING EACH YEAR, WHAT ARE YOU HIDING.

SO THERE IS SOMETHING TO CONTINUITY.

PLUS I DON'T HAVE TO BRING UP A BUNCH OF PEOPLE NEW.

>> THE LAST THING, ANY BOND PROGRAM OR WHATEVER WE DO, I WANT TO MAKE SURE AND THIS IS SOMETHING THAT IS VERY IMPORTANT TO ME, IS THAT WE HAVE SOME MECHANISM IN PLACE OR PROGRAM THAT'S STRONG TO SURE THAT SMALL AND MINORITY BUSINESSES GET TO

PARTICIPATE IN ANY OPPORTUNITIES >> ABSOLUTELY >> THAT BECOME AVAILABLE.

THIS IS OUTSIDE OF REGULAR OPERATIONS >> I'M BLOOD YOU SAID SMALL BUSINESSES >>

SIMULTANEOUS SPEAKERS ] >> THAT'S ALREADY BEEN PART OF CONVERSATIONS WE'VE BEEN

HAVING TO STRESS THE SPONSOR OF THAT >> I AGREE >> THAT WAS VERY STRONG PART OF THE

LAST BOND PROGRAM TO WHERE WE HAD VERY STRONG >> PARTICIPATION >> MINORITY PARTICIPATION.

HOPEFULLY THAT IS LOOKED AT AGAIN.

WITH THAT.

JUMPED IN A LITTLE BIT I WASN'T THROUGH YET IN TERMS OF THANKS.

WE WILL GO THERE TOO.

THERE IS A CONSENSUS FROM THE BOARD, WE CAN'T TAKE ACTION.

IS THERE CONSENSUS FROM THE BOARD TO MOVE FORWARD ON THE TIME LINES THAT WE EITHER

[02:15:01]

SAY YAY OR NATO A BOND ELECTION AT THE FEBRUARY MEETING? IF ITS YAY THEN WE HAVE THE ELECTION IN MAY.

IS THAT THE CONSENSUS? OKAY.

>> YES.

>> OKAY.

AND THIS WAS THE POINT TO THANK EVERYBODY.

>> I'M SORRY.

I THANK THIS BOARD FOR THEIR QUESTIONS.

THIS IS GREAT FEEDBACK US TO.

AND HELPS US.

DRAMATICALLY.

IT REALLY DOES >> CAN & WHAT WAS CONSENSUS?

>> THAT WE MOVE FORWARD WITH A VOTE AT THE FEBRUARY BOARD MEETING WHETHER WE'RE GOING TO GO TO SAY YES OR NO TO BOND ELECTION.

IF WE SAY YES IT BE HELD IN MAY AT THE MAY BOARD DATE.

>> OKAY.

I WANT TO SAY THANK YOU THESE GUYS I WAS INVOLVED IN '04 BOND CAMPAIGN THERE ARP WHOLE LOT PROMISES MADE WAY THIS AREA HAS MANAGED BY THIS DISTRICT FOR 15 YEARS OUGHT TO GIVE A TAXPAYERS GREAT FAITH WE GO TO THEM AGAIN.

YOU'VE DOING IT YOU'VE SAVED TENS IF NO HUNDREDS OF MILLION DOLLARS THROUGH SKILL AND A RECOMMENDATION AND CREATIVITY.

IT HAPPENS OTHER PICK UP INSTITUTIONS THAT YOU WORK WITH >> ALL THE MONEY SAVED,

YES WE DON'T MAKE ENOUGH OF A DEAL FOR >> IT'S LOT OF MONEY JOHN CUMULATIVE IN

LAST FEW YEARS >> THIS DISTRICT HAS BEEN LONG BEFORE I GOT HERE, A VERY GOOD STEWARD OF ITS MONEY.

IT APPEARS IN WHAT WE'VE DONE CULTURE THAT WE HAVE THAT WE'RE GOOD FISCAL MANAGERS AND THAT'S IMPORTANT.

>> EXCELLENT.

THANK YOU ALL VERY MUCH.

ONE HOUSEKEEPING MATTER BEFORE EVERYBODY GETS UP, SO WE'VE GOT A COMPRESSION PLANNING SESSION FOR THIS AFTERNOON.

HOWEVER, SINCE WE HAVE A GOOD CONSENSUS A LOT OF GOOD DISCUSSION, INFORMATION HAS BEEN ASKED FOR THAT WHICH WAS NOT PROVIDED WILL BE FOLLOWED UP WITH, CORRECT?

SO IS THERE A NEED FOR A COMPRESSION PLANNING SESSION >> I DON'T THINK SO.

>> YOU KNOW IT RAS REALLY TO MAKE SURE THAT EVERYONE HAD INPUT THAT QUESTIONS WERE ANSWERED.

AND THAT WE, BUT THIS HAS BEEN, FRANK WILL MUCH MORE THOROUGH THAN WE WERE EXPECTING.

IN TERMS OF DISCUSSION.

SO I, AND OBVIOUSLY, QUESTIONS WILL ARISE GOING FORWARD.

WE'RE AVAILABLE TO ANSWER THOSE IN WHATEVER MEANS THAT WE CAN.

SO UNLESS SOMEONE WANTS TO GO THROUGH COMPRESSION PLANNING PROCESS--

LAUGHTER ] >> WE GET TO HAVE LUNCH BOARD MEMBERS DO I DON'T KNOW ABOUT THE REST OF YOU.

>> CAN I ASK >>

>> CAN I ASK ONE MORE QUESTION? IF IN FEBRUARY THE VOTE IS TO MOVE FORWARD WITH THIS PROPOSAL BOND ELECTION, ARE THERE GOING TO BE A SERIES OF COMMUNITY AND PUBLIC FORUMS?

>> YES.

>> LIKE WE DID BEFORE?

>> YES.

WE'VE, WE'VE OBVIOUSLY COULDN'T COMMIT TO ANYTHING.

BUT THE USUAL GROUPS THAT HAVE TAKEN PART IN ISD GROUPS AND OTHERS HAVE INDICATED SUPPORT OF WHAT WE'RE DOING WITHOUT TAKING SPECIFIC ACTION ON IT TODAY WHICH INCLUDE CHAMBERS.

IT INCLUDES THOSE IN THE REAL ESTATE COUNCIL AND OTHER THAT IS OR THERE.

WE HAVE HAD HAWAIIED MORE THAN ONE CONVERSATION WITH THEM.

AND ASKED THEM THE QUESTION, DO THEY BELIEVE THAT THEY CAN GET THEIR MEMBERS TO SUPPORT THIS.

THE ANSWER BASED ON WHAT THEY'VE GIVEN TODAY WAS YES.

BUT >> AND DID YOU GIVE THE SAME INFORMATION THAT THE BOARD JUST SAW?

>> NO THEY HAVE NOT SEEN THE SAME INFORMATION THAT BOARD SAW.

>> HOW DID YOU GET THAT >> THIS WAS A VERBAL DISCUSSION BASED ON THE NEEDS THAT WERE THERE.

AND THE, THEY DO DOLLAR AMOUNT.

THEY, THEY DO ADDRESSING THE NEEDS OF ENTIRE COUNTY.

THAT'S THERE.

AND THAT WE WOULD BE ADDRESSING HOPEFULLY FUTURE ORIENTED AS WELL KNOWING PROJECTIONS FOR DALLAS COUNT TO HALF MILLION POPULATION BETWEEN NOW AND YEAR 2030 AS AS WE LOOK AT THAT.

AND ONLY THING THAT I WOULD SAY WE IMPLIED IS THAT WE WOULD CONTINUE TO WORK WITH HIGH SCHOOLS AND MANNERS THAT WE'VE DONE NOW.

THAT WAS A STRONG CONSIDERATION FOR >> YOU KNOW, I SAW MAYBE IN YOUR TRANSITION MEMO OR EVEN THIS, THAT, MAYBE IT WAS MARY PROVIDE I DON'T REMEMBER EXACTLY WHERE, BUT THERE WAS A STATEMENT MADE IN THERE THAT THERE WAS A

GREAT INTEREST >> YES, THERE IS.

AND SPECIFICALLY I BELIEVE IN THE STUFF DOWNTOWN?

>> THAT IS TRUE.

THAT IS TRUE.

>> THAT IS TRUE.

JUST A YOU ALL CAN LEAVE WE'RE HOUSEKEEPING MATTERS NOW.

[02:20:04]

WE'RE GOING TO CONTINUE IN OUR DISCUSSIONS FOR A MOMENT BUT YOU ALL CAN LEAVE THANK YOU SO MUCH.

AND MS. TARPEH THANK YOU SO MUCH.

GENTLEMEN I DIDN'T MEAN TO EXCLUDE YOU.

>> OKAY.

>> I WOULD SAY THE ANSWER IS QUESTION.

>> SINCE WE'RE NOT DOING COMPRESSIONING >> WE REACHED OUT MAYOR'S OFFICERS AND CHAMBER, REACHED OUT TO US.

CITIZEN COUNCIL REACHED OUT TO US ALL EMPHASIZING THAT THE BELIEF THAT WE NEED TO BE COMPETITIVE AS A CITY, THAT WE NEED TO STRENGTHEN OUR DOWNTOWN PRESENCE.

>> I JUST HAVE A HARD TIME BELIEVING BUT WE'LL SEE THAT >> AGAIN.

WE DID MEET WITH CHAIR FLORES WAS THERE WITH REPRESENTATIVES OF CHAMBER AND OTHER GROUPS THAT WERE THERE.

I THINK THAT WAS KIND OF SENTIMENT >> THAT'S FINE.

BUT WHAT I'M SAYING IS THAT IF I LIVED IN LET'S SAY RICHLAND I WOULDN'T BE REALLY HAPPY THAT MOST OF MY TAX DOLLARS WERE GOING TO THE CITY OF DALLAS.

NOT AT ALL.

AND DOWNTOWN DALLAS AT THAT.

BECAUSE, I UNDERSTAND ABOUT ONE BUILDING, AND YOU KNOW WE DO THE PASSES AND ALL BUT I THINK WE NEED TO MAKE VALUABLE CONTRIBUTIONS TO ALL AREAS OF THE COUNTIES AND CITIES THAT ARE PART OF OUR TAX BASE.

>> ALL RIGHT.

VERY GOOD.

WE'VE COME TO THE CONCLUSION OF THIS MEETING.

WE HAVE LUNCH FOR BOARD MEMBERS I DON'T KNOW ABOUT OTHERS.

AND THEN WE HAVE ONE MORE MATTER THAT WE HAVE TO MAKE A DECISION ON WHICH WE WILL BECAUSE I DOUBT THAT I CAN HOLD BOARD MEMBERS UNTIL 3.

>> RIGHT >> FOR THAT SPECIAL MEETING FOR ONE ACTION.

BUT I'LL DISCUSS WITH JUSTIN.

ALL RIGHT.

* This transcript was compiled from uncorrected Closed Captioning.