Jul 14, 2025 City Council Special Meeting

IS TO HEAR A PRESENTATION AND DISCUSS AN UPDATE OF THE CITY HALL REDEVELOPMENT AND RENOVATION PROJECT.

I'LL ENTERTAIN A MOTION IF THERE'S NO QUESTIONS OR DISCUSSION.

I MOVE TO APPROVE THE ORDINANCE AMENDING CHAPTER TWO, ADMINISTRATION OF THE CODE OF ORDINANCES BY ADDING A NEW ARTICLE 10 WAXAHATCHEE CULTURAL ARTS AND HERITAGE COMMISSION.

DO WE HAVE A SECOND? SECOND.

ALL IN FAVOR? RAISE YOUR RIGHT HAND.

MOTION CARRIES.

THANK YOU COUNSEL.

NEXT ITEM

[7. Hear presentation and discuss update of the City Hall redevelopment and renovation project ]

DUSTIN MAYOR AND COUNCIL MEMBERS DUSTIN DEAL, DIRECTOR OF ADMINISTRATIVE SERVICES.

UH, TODAY WHAT WE HAVE FOR YOU IS A UPDATE AND PRESENTATION ON THE CITY HALL CONSTRUCTION PROJECT, AND WE HAVE OUR PROJECT MANAGERS, UH, JOHN ARI WITH ARI MANAGEMENT GROUP HERE, WHO'S GOING TO WALK YOU THROUGH A PRESENTATION IN THE UPDATE.

THERE WERE STILL DOUBLE DIPPING.

I'LL TURN IT OVER TO JOHN MAYOR COUNCIL.

GOOD SEEING SOME OF YOU.

AGAIN.

WE HAVE SOME NEW MEMBERS THAT I HAVEN'T MET BEFORE.

JOHN ARI, UH, MANAGING PRINCIPAL WITH ARI MANAGEMENT GROUP.

SO WE'LL GET TO IT.

THE FIRST SLIDE IS GIVING A SUMMARY OF WHAT VMG WE MANAGE ON AVERAGE THREE TO 400 MILLION IN, UH, HARD CONSTRUCTION COSTS EVERY YEAR.

AND WE'VE SEEN, AND THIS IS GONNA GIVE SOME CONTEXT TO THE FOLLOWING SLIDES OF SOME PRETTY DRAMATIC PRICE INCREASES SINCE THE BEGINNING OF THE YEAR.

AND THESE ARE JUST WHAT WE'VE BEEN EXPERIENCING OF SOME OF OUR PROJECTS THAT SPECIFICALLY WE'RE MANAGING.

AND SO JUST LOOKING AT SOME DATA POINTS AND BEING ABLE TO PROVIDE SOME OTHER DATA POINTS THAT BEGIN TO PROVIDE SOME CONTEXT TO WHAT WE'VE EXPERIENCED HERE ON THIS PROJECT.

ANY QUESTIONS ON THIS SLIDE? THIS IS THE NEXT SLIDE IS COVERING THE HISTORY OF THE BUDGETARY ESTIMATING AS PROVIDED BY OUR CMAR THAT WAS ONBOARDED TURNER CONSTRUCTION.

AND SO THE ORIGINAL APPROVED CONSTRUCTION BUDGET IN JANUARY 22ND, 24 WAS 12.2 MILLION.

AND THEN IN 7 31 24, TURNER PROVIDED A SCHEMATIC BASED ON THE 100% SCHEMATIC DESIGN, A BUDGETARY ESTIMATE OF TWO 12.3.

SO WE FELT IT WAS STILL WITHIN ACCEPTABLE BUDGET RANGE.

AND THE REASON WE WE'RE PUTTING IT WITHIN ACCEPTABLE BUDGET RANGE BEYOND THE 12.2 MILLION, WE HAD CONTINGENCIES AT THE OWNER'S CURRENT AND OWNER CONTINGENCY LINE ITEM.

AND THEN WE ALSO HAD IN THE SCOPE THAT TURNER HAD AT THE 12.3, THE OWNER WAS CARRYING SOME SIMILAR SCOPE, SO THERE WAS SOME DOUBLE-DIPPING OF SCOPE.

SO AT THAT TIME, IT WAS A DECISION WAS MADE TO APPROVE, TO CONTINUE THE DESIGN AND, AND ADVANCE THE DESIGN TO THE 100% DD MADE THAT DECISION.

UH, STAFF DID.

AND THEN IN OCTOBER 22ND, THE 100%, UH, DD BUDGET AND DESIGN, I'M SAYING DD DESIGN DEVELOPMENT BUDGETARY ESTIMATE WAS PROVIDED BY TURNER CONSTRUCTION.

THEY GAVE AN UPDATE.

AND, UH, SAME THING WITHIN THE ACCEPTABLE BUDGET RANGE.

12.4 IS MORE, UM, INFORMATION AND DEFINITION AND IS BEING DEVELOPED FROM SCHEMATIC DESIGN TO DESIGN DEVELOPMENT.

THE COST WENT UP, WHICH IS TYPICAL OF WHAT WE SEE, UM, INCREMENTALLY, BUT STILL WITHIN, AGAIN, WE'RE CARRYING AN OWNER'S CONTINGENCY OUTSIDE OF THE 12.2.

AND THEN THERE WAS STILL SOME DOUBLE DIPPING OF SCOPE.

SO WE FELT LIKE WE HAD, UH, A LEVEL OF CONFIDENCE THAT AS LONG AS IT STAYED CLOSE TO THIS RANGE, WE COULD STILL EXECUTE THE PROJECT WITHIN THE TOTAL OVERALL PROGRAM BUDGET.

THEN ON JANUARY 29TH, TURNER CONSTRUCTION PROVIDED A, A REVISED BUDGETARY ESTIMATE BASED ON THE CONSTRUCTION DOCUMENTS BEING 50% COMPLETE, AND IT BUMPED BY $1.1 MILLION.

AT THIS TIME, WE STILL WITH THE OWNER'S CONSTRUCTION CONTINGENCY, AND THERE WERE SEVERAL ITEMS THAT WERE IN TURNER'S BUDGETARY ESTIMATE THAT WE WERE CARRYING AS AN OWNER.

[00:10:01]

AND THIS DOESN'T, AT THIS POINT, WE'VE MADE NO VE EXERCISES AT ALL TO BEGIN TO LOOK AT ALTERNATES OR DIMINISH SCOPE OR REDUCE, UH, CHANGE MANUFACTURERS OR ANYTHING LIKE THAT.

SO THE DECISION WAS MADE TO PROCEED FORWARD, AND THAT WAS ON JANUARY 29 WHEN WE GOT THAT REVISED BUDGETARY ESTIMATE.

AND THEN THE AMOUNT OF TIME BETWEEN THE, OR THE AMOUNT OF DESIGN BETWEEN 50% AND 100% CDS THAT WAS COMPLETED.

AND THIS IS WHEN, QUITE HONESTLY, THE 100% GMP FORECAST JUST COMPLETELY BLEW UP WITH A REVISED BUDGETARY ESTIMATE FROM TURNER TAKING IT TO 16.2.

AND AT THAT POINT, THERE WAS NO, NO HOPE OF, OF HAVING ANY REAL STRATEGIES OR, UH, WITHOUT SEVERE SCOPE CHANGES TO GET THIS PROJECT BACK INTO THE BUDGET.

AND THEN THIS WAS A FORECAST THAT THEY HAD PROVIDED ON FIVE 16, AND THEN ON FIVE 30 THEY SUBMITTED THE FINAL 100% C-D-G-M-P AT 16 NINE AND CAME IN AT 4.7.

STILL IN THIS 4.7, OR I'M SORRY, FOUR.

YEAH, THE 16 NINE, WHICH IS 4.7 MILLION OVER BUDGET TURNER STILL HAD A DOUBLE DIP OF SCOPE IN THERE.

WE, UH, STILL HAVE SOME OVER CONTINGENCY, BUT IT'S NOT ENOUGH.

WASN'T ENOUGH TO OVERCOME FROM THE 13 FIVE TO THE 16 NINE.

SO THIS IS GIVING A HIGH LEVEL HISTORY OF HOW WE GOT FROM 12 TWO AND HOW TURNER'S BUDGETARY ESTIMATES INCREMENTALLY TOOK US TO WHERE THEY WERE TO WHERE THEY ARE WITH THE FINAL GMP ON FIVE 30.

I'M HAPPY TO ANSWER ANY QUESTIONS ON THIS SLIDE.

ARE ARE YOU SURPRISED AT THESE FIGURES AT ALL? I AM SURPRISED.

UH, WE'VE BEEN, I'VE BEEN DOING THIS FOR 42 YEARS, AND I ONLY SAW HISTORICALLY, UH, POST COVID IN, IN SPRING OF 20 WHERE CONSTRUCTION COSTS JUST WENT THROUGH THE ROOF.

AND WE HAD ESTIMATES AND PROPOSALS THAT THEY WERE GIVING US AN ONLY LASTING TWO WEEKS.

AND I JUST NEVER HAD SEEN ANYTHING LIKE IT.

IT SURPRISED US THAT IT TOOK THE JUMP FROM 13 FIVE TO 16 NINE, BUT THEN AS WE STARTED SEEING ON OTHER PROJECTS THAT WERE MANAGING SIMILAR ITEMS WITHIN THE BUBBLE OF Q1, Q2, IT, IT DID SURPRISE US, BUT WE SAW OTHER PROJECTS UNDERGOING THE SAME KIND OF STRESSES FROM CONSTRUCTION, COMMODITY, AND LABOR.

AND WE'LL GO ON WHEN WE DO GO ON TO THE NEXT SLIDE, WE'LL TALK ABOUT THAT, THAT WE SEE AS SOME OF THE FACTORS THAT WE'RE HEARING FROM THE CONTRACTORS THAT ARE BIDDING ON PROJECTS THAT WE'RE MANAGING.

AND, UM, IT, IT, THERE'S SOME EXTRAORDINARY FACTORS THAT WERE SEEN LIKE COVID IN 2020, AND THE RESPONSE FROM THE CONSTRUCTION COMMODITIES AND THE SUBCONTRACTOR TRADES WITH EITHER REAL OR PERCEIVED COST INCREASES FROM THE TERRORISTS.

AND THIS ISN'T POLITICAL STATEMENT, I'M NOT SAYING THEY'RE GOOD, THEY'RE BAD.

I'M JUST TELLING YOU WHAT WE'RE SEEING AND WHAT THE GENERAL CONTRACTORS ARE TELLING US THAT THEY'RE GETTING FROM THE SUBCONTRACTOR TEARS IS THERE'S FEAR, THERE'S UNKNOWN.

AND ANYTIME THERE'S UNKNOWN IN A PROJECT, CONTRACTORS COVER IT WITH MONEY.

AND SO WE'VE SEEN ESCALATION IN STEEL, ALL KINDS OF ITEMS THAT ARE ABSOLUTELY AREN'T IN LINE WITH HISTORICAL COST INCREASES FOR THE LAST FOUR OR FIVE YEARS.

WELL, ACTUALLY IN ANY TIME, LIKE I SAID, IN COVID SPRING OF, OH, SPRING OF 20, WE SAW 20, 30, 50%, A HUNDRED PERCENT STEEL DOUBLING IN TWO OR THREE MONTHS.

THERE, THERE WERE SOME PRETTY EXTRAORDINARY, UH, PRICING EVENTS THAT TOOK PLACE.

AND THE, THIS IS REMINDING US OF THOSE KIND OF INCREASES THAT WE'RE SEEING.

WELL, CAN I ASK YOU A QUESTION, SIR, WHEN IT COMES TO THAT? BECAUSE THAT WAS GONNA BE MY QUESTION AND THEN YOU HIT ON IT ON IS THIS, THEM GUESSING THAT TARIFFS WERE GONNA KICK IN AND THEY'RE GONNA CAUSE IT, BUT SINCE THEY'VE CHANGED, THEY'RE NOT SURE IF THEY'RE STILL ADDING IT IN.

THE PROBLEM I'VE GOT, AND THE REASON I WANTED TO ASK YOU THIS QUESTION IS YOU SAY HISTORICALLY MM-HMM .

WELL, HISTORICALLY I'VE SEEN WHEN THESE PRICES JUMP UP LIKE THIS BECAUSE PEOPLE GUESS THAT'S GONNA HAPPEN MM-HMM .

AND THEN IT DOESN'T HAPPEN.

WE STILL END UP PAYING THAT PRICE.

THAT'S EXACTLY WHAT WE .

THEY DON'T EVER GO DOWN.

THEY

[00:15:01]

BRING IT UP WITH THE GUESTS THAT IT'S GONNA COST THAT MUCH BECAUSE OH, THE TARIFF'S GONNA COST ME THAT.

THAT'S GONNA COST ME THAT.

AND THEN WHEN IT DOESN'T, WE STILL GET CHARGED THAT BIGGER NUMBER.

RIGHT.

UH, AND AND THE SAME THING HAPPENED WITH COVID STILL GOING FROM 5,500 A TON TO SEVEN OR 8,000 A TON.

THEN IT DIDN'T COME DOWN.

IT STAYED THE SAME.

THEY, THE, THE, WHAT WE SEE IS A LOT OF THE CONSTRUCTION COMMODITY, WHETHER IT'S VOL, CRAFT BAR JOISTS, OR ANY OF THESE PROVIDERS, THEY UNFORTUNATELY TAKE THE OPPORTUNITY TO RAISE THEIR PRICES.

AND WE, WE DON'T SEE 'EM COMING DOWN AND NOW IT, IT, IT'S ALL, IT'S, WHAT WE'RE SEEING IS A TWO EDGED SWORD THAT WE'VE BEEN HEARING ABOUT FOR OVER A DECADE, WHERE SUBCONTRACT OR LABOR, THEIR LABOR POOL, THE SENIOR CRAFTSMEN ARE RETIRING AND LEAVING, AND THEY'RE NOT BEING REPLACED BY MORE, BY BY TO THE QUANTITY.

THEY'RE NOT BEING BACKFILLED WITH EXPERIENCED SENIOR CRAFT PEOPLE.

AND SO THE TRADES THAT HAVE THE EXPERTISE TO DO THESE PROJECTS, THEY'RE FEWER, FARTHER AND FEWER BETWEEN.

UM, WE'RE IN AN INCREDIBLY, UH, ROBUST CONSTRUCTION MARKET HERE IN NORTH TEXAS.

ONE OF THE PROJECTS THAT WE WERE TALKING ABOUT IS OUT, OUT IN MIDLAND, AND THERE'S JUST A, A TREMENDOUS AMOUNT OF WORK GOING ON IN THE MIDLAND PROJECT.

90% OF THOSE SUBCONTRACTORS ARE FROM DFW.

THEY'RE TAKING THEM OUT OF THE DFW MARKET AND SAYING, AND THAT'S A HUNDRED MILLION DOLLAR HEALTHCARE PROJECT.

THE MIDLAND IS D BOND PROGRAM, 1.1 BILLION.

THEY'RE TAKING SUBS OUT OF THIS MARKET.

SO WE'RE SEEING IN THIS JUST A LOT OF PRESSURES ON THE AVAILABLE SUBCONTRACTOR MARKET THAT THEY'RE IN, THE DRIVER'S SEAT, UNFORTUNATELY, THE GENERAL CONTRACTORS ARE TELLING US, AND IT IT, IF YOU DON'T WANNA PAY WHAT THEY'RE ASKING, THEN THEY'LL GO ON TO THE NEXT PROJECT.

IT'S, IT'S, IT'S HORRIBLE ON THE OWNER SIDE IN TRYING TO MANAGE AND PREDICT COST, ESPECIALLY WITH THE, UH, UH, WITH, WITH THE TARIFFS COMPLICATING IT AND JUST, JUST THE, WHETHER IT'S REAL OR PERCEIVED.

UM, 90% OF THE LIGHT FIXTURES COME FROM CANADA AND VIETNAM.

THEY'RE STILL WORKING THROUGH THOSE TARIFFS.

SO NOBODY KNOWS.

EVERYBODY SAYS, OH MY GOSH, RIGHT NOW THERE'S A, THERE'S A NEW LETTER THAT WENT OUT TO JAPAN ON MONDAY.

IT IT IS, THEY, THEY JUST DON'T KNOW.

SO THEY'RE SAYING, WELL, I HEARD THIS IS A POTENTIAL TARIFF, SO WE'RE GONNA ABSORB IT BECAUSE IF YOU'RE GONNA HOLD US TO THIS PRICE OVER THE NEXT EIGHT MONTHS, WE DON'T KNOW.

SO WE'RE GONNA COVER OURSELVES.

SIR.

CAN, CAN I MAKE A REQUEST AND THEN I HAVE A QUESTION.

THERE WERE NO, UH, IN THAT CONTRACT, THERE WERE NO, UH, PERFORMANCE GOALS IN THERE.

CAN WE NOT REFERENCE COVID OR TARIFFS AGAIN, WE DON'T NEED A, WE, I MEAN, IT JUST, IT'S IRRELEVANT TO THIS PROJECT.

UM, WHAT EXACTLY IS Y'ALL'S ROLE? BECAUSE YOU'VE MENTIONED TWICE, OR NOT TWICE, YOU'VE MENTIONED MULTIPLE TIMES NOW WORKING WITH GENERAL CONTRACTORS AND SUBCONTRACTORS MM-HMM .

WHAT IS YOUR ROLE? BECAUSE THAT'S WHAT A GENERAL CONTRACTOR SHOULD BE DOING, IS WORKING WITH SUBCONTRACTORS? SO OUR ROLE AS A PROJECT MANAGER OR THE OWNER'S REP, IT'S VERY MUCH LIKE, UM, IF YOU'D SEE AN ORCHESTRA AND THEY HAVE ALL THE DIFFERENT PEOPLE IN THE ORCHESTRA.

SO WE HAVE GENERAL CONTRACTOR, THE SUBCONTRACTORS, WE HAVE THE DESIGN TEAM, ALL THE CONSULTANTS IN THE DESIGN TEAM.

WE HAVE THE, UM, STAKEHOLDERS ON THE CITY SIDE, WHETHER IT'S THE FIRE DEPARTMENT, THE SECURITY, LOW VOLTAGE, ALL OF THAT.

WE ACT AS THE DIRECTOR USING THAT ANALOGY OF A, OF THE ORCHESTRA AS A DIRECTOR, MANAGING THE ONBOARDING PROCESS, THE DESIGN TEAM OVERSEEING THE CONTRACT, DEVELOPING THEIR SCOPE BASED ON INPUT FROM THE CITY ON THEIR DESIGN.

THEN WE MANAGE THE DESIGN TEAM TO MAKE SURE THEY HIT THE DESIGN MILESTONES, STAY WITHIN THEIR BUDGET.

THEN WE MANAGE THE RFP THAT WENT OUT TO BIDS FOR THE GENERAL CONTRACTORS, MANAGE THAT SELECTION PROCESS.

THERE WAS A SELECTION COMMITTEE MADE UP OF STAFF, AND THE GENERAL CONTRACTOR WAS SELECTED.

AND THEN WE MANAGE AND OVERSEE THE GENERAL CONTRACTOR HITTING THEIR SCHEDULE, MILESTONES, THE SCOPE, AND THEN WHEN THINGS LIKE THIS COME UP, TRYING TO MITIGATE THOSE COSTS OR COST INCREASES.

SO BASED ON THAT, IT SOUNDS LIKE YOU'VE MISMANAGED THE PROJECT, AND I DON'T MEAN THAT IN A NEGATIVE WAY.

YES.

OTHER THAN THE FACT THAT WE MANAGED YOU, YOU'VE MISMANAGED THE PROJECT.

UM, HOW MUCH OF THIS TOTAL IS OVERHEAD AND PROFIT FOR YOU? HOW MUCH OF THIS AMOUNT IS OVERHEAD? MM-HMM .

PROFIT FROM EIGHT ZERO.

SO WE'RE ON A FIXED LUMP SUM CONTRACT THAT WE WERE SIGNED UP PROBABLY 18 MONTHS AGO.

SO WE AREN'T GETTING ANY ADDITIONAL FEE, EVEN THOUGH THE PROJECT .

SO DO YOU HAVE CRITERIA IN THAT CONTRACT THAT YOU HAVE TO MEET OF, LIKE A PERFORMANCE GOAL?

[00:20:02]

IT'S STRICTLY MANAGING THE PROCESS.

SO THERE WAS NO, UH, WHAT DO THEY CALL, UH, UH, PI PERFORMANCE INDICATOR METRICS OR ANYTHING LIKE THAT? NOTHING IN THE CONTRACT AT ALL.

NO, SIR.

SO WE JUST GAVE YOU FREE REIGN TO MISMANAGE THIS TO THE TUNE OF BEING $4.7 MILLION OVER BUDGET.

WELL, I DON'T FEEL WE MISMANAGED IT.

WE MANAGED EVERYTHING THAT WE HAVE IN OUR CONTROL.

I GOT IT.

WE COULDN'T FORESEE, WE COULDN'T FORESEE THE, UM, THE COVID POLICIES THAT CAME IN PLACE.

WE COULDN'T, HAS NOTHING TO DO WITH COVID.

WE'RE, WE'RE, WE'RE FIVE YEARS PAST THAT.

AND I, NO, I DIDN'T SAY, I MEAN, COVID, THE, I'M IN CONSTRUCTION ALSO, AND IT HAS NOT JUMPED TO THAT MUCH.

WELL, WE HAVE THE DATA THAT SUPPORTS THAT ON OUR PROJECTS, AND IT'S NOT COVID, IT'S THE, UH, TARIFF UNCERTAINTY.

SO HAVE YOU AND THE UNFORESEEN CONDITIONS.

SO HAVE YOU TRIED TO SOURCE OTHER OPTIONS INSTEAD? I MEAN, YOU'RE SAYING THAT THE LIGHT FIXTURES ARE COMING FROM CANADA? ABSOLUTELY.

JAPAN HAVE, SO YOU CAN'T FIND ANYTHING ELSE? NO, WE HAVE TO CUT COSTS.

WE'VE, WE'VE SO FAR IMPLEMENTED ABOUT 270,000 OF COST SAVING MEASURES THAT ARE INCLUDED IN THIS NUMBER.

AND SO WE'VE ACTIVELY BEEN WORKING THE LAST TWO MONTHS TRYING TO FIND ALTERNATIVE MANUFACTURERS, METAL PANELS, CHANGING THE STAIRWELL DESIGN.

WE HAVE BEEN ACTIVELY WORKING, TRYING TO COME UP WITH, UH, VE OPTIONS THAT'S ACCEPTABLE, THAT KEEPS THE SPIRIT OF THE PROJECT STILL THERE AND DOESN'T LOOK LIKE A STRIPPED DOWN SHELL WHEN WE DELIVER IT.

SO WE, OF THE 4000001.7, IF WE'LL GO ONTO THE OTHER SLIDES, 1.7 MILLION IS UNFORESEEN CONDITIONS.

WHEN THE 2000 EDITION WAS BUILT, THE FOUNDATION WASN'T BUILT LIKE THE PLANS SAID IT WAS SUPPOSED TO BE BUILT.

SO THEY HAD TO COMPLETELY COME UP WITH A NEW FOUNDATION DESIGN, UH, CHANGE THE STRUCTURAL STEEL DESIGNS.

SO OF THIS $4 MILLION, IF WE WERE TO CONTINUE ON, ALMOST HALF OF IT IS DUE TO UNFORESEEN CONDITIONS BECAUSE THE AS-BUILT DRAWINGS THAT THE DESIGN TEAM WAS GIVEN WAS INACCURATE BASED ON THE 2000 EDITION THAT WAS BUILT UNDER THE CURRENT CLIMATE.

'CAUSE THIS GOES UP TO MAY OF 25, AND I DON'T KNOW EXACTLY WHAT I'M ASSUMING 18 MONTHS TO TWO YEARS IS THE ESTIMATED COMPLETION TIME.

ARE WE EXPECTING THESE TO CONTINUE TO RISE BECAUSE OF THE TIMEFRAME? RIGHT NOW, THIS LATEST GMP THAT TURNER'S PROVIDED, IT LOCKS IN THOSE PRICES, SO IT'S A GUARANTEED MAXIMUM PRICE, AND THIS WOULD BE THEIR CAP.

SO IF, IF, IF THAT CONTINUES TO RISE, WE AREN'T EXPOSED TO THOSE, TO THOSE INTERVIEWS.

I, I HAVE A QUESTION FOR YOU.

TALKING ABOUT, SO THE UNFORESEEN CONDITIONS MAKE UP 1.4 MILLION.

IF, IF WE'RE JUST NOW LOCKING IN THESE, THESE, UM, QUOTES, WHAT HAVE YOU, WHERE WE HAVE SIGNED CONTRACTS WITH THESE SUBS, WHY HAVE WE ALREADY TORE THE BUILDING DOWN? GREAT QUESTION.

BECAUSE THERE'S BEEN AN INCREMENTAL RELEASE OF THE SUBCONTRACTORS.

SO BACK IN 10, UH, WHAT WE CALLED, UH, THE EARLY RELEASE PACKAGE NUMBER ONE, THAT WAS FOR THE EARLY CIVIL ENGINEERING WORK, THE CIVIL, UH, UNDERGROUND UTILITIES WORK, AND THEN THE DEMOLITION.

AND SO THAT'S THE NATURE OF THE CONSTRUCTION MANAGER, UH, AT RISK DELIVERY SYSTEM IS YOU HAVE INCREMENTAL PACKAGES THAT YOU TAKE OUT AND YOU BEGIN WORK.

BECAUSE IF WE WAITED TILL THE PROJECT WAS COMPLETED AND THE DESIGN WAS COMPLETED, THE PROJECT WOULD STRETCH OUT EVEN LONGER.

AND THE GENERAL CONTRACTOR WOULD RUN OUT OF WORK WAITING 12 MONTHS FOR AN ELEVATOR, 12 OR 13 MONTHS FOR SWITCHGEAR.

SO THAT'S THE STRATEGY IS YOU'RE RELEASING EARLY PACKAGES SO THEY CAN BEGIN WORK.

WE'RE RELEASING THIS LONG LEAD MATERIALS WHILE IT'S IN DESIGN TO START MITIGATING THAT.

I UNDERSTAND CHAMBER IN COURTROOM THAT WORKED PERFECTLY FINE, AND NOW WE HAVE NOTHING AND WE'RE IN THIS PLACE BECAUSE YOU MISMANAGED THE PROJECT.

AGAIN, LIKE THAT'S, THAT'S WHERE WE'RE AT, IS THE POINT THAT'S BEING MADE IS WHY DID WE TEAR IT DOWN? 'CAUSE WE DIDN'T, YOU, WE, WE, WE WEREN'T EVEN THERE YET.

AND NOW WE STILL HAVE TO MEET IN HERE BECAUSE Y'ALL MOVED FORWARD ON A PROJECT WITH A CONTRACT THAT HAD NO PERFORMANCE GOAL SET IN IT.

AND NOW YOU'RE TELLING US THAT WE'RE 4.7 MILLION OVER, YOU'RE $4 MILLION OVER.

IF, IF WE'LL GO DOWN THE SLIDE, AND AGAIN, I DON'T FEEL LIKE WE'VE MISMANAGED IT, WE'D BE AT $1.7 MILLION WITH THIS WOULD BE LESS 1.7 MILLION.

THE $4 MILLION ASK IF WE WOULDN'T HAVE RUN INTO THE UNFORESEEN CONDITIONS.

SO YOU'RE THREE STILL $3 MILLION OVER, UH, 2 MILLION OR 2.3 MILLION OVER 4.7 MINUS 1.7.

WELL, WE MITIGATED, I'M GONNA GO TO THE NEXT SLIDES

[00:25:01]

AGAIN, THIS WAS, THE ARCHITECT TOOK THE AS-BUILT DRAWINGS PROVIDED BY THE CITY SAYING THIS IS HOW THE ADDITION WAS BUILT.

AND DURING THE EXCAVATION AND DEMOLITION, THEY DISCOVERED THE OLD FOUNDATION SYSTEM WAS IN A LOCATION THAT WASN'T THERE.

SO THEY HAD TO STOP.

WE HAD TO GO IN AND REDESIGN THE FOUNDATION SYSTEM.

THE STEEL CHANGED LOCATION OF THE STAIRWELL.

UH, YOU CAN SEE THE RIPPLE EFFECT IS SIGNIFICANT TO MITIGATE THE UNDERGROUND PI GRADE BEAMS, PEER CAPS THAT WERE ALL NOT IN THE LOCATION THAT THE DESIGN TEAM WAS PROVIDED.

THEN THERE WAS A PHASE ONE AND PHASE TWO ESA, WE WERE TOLD THAT THE CITY HAD THAT IN HANDS, UH, THAT NEVER COULD BE PRODUCED.

SO WE HAD TO GO OUT AND GET A PHASE ONE AND PHASE TWO.

THE PHASE ONE SAID THERE WAS, UM, OLD HISTORICAL USES OF GAS STATIONS, THEN WE HAD TO GO INTO PHASE TWO.

THERE'S CONTAMINATED SOIL AGAIN, UNFORESEEN CONDITIONS.

SO NOW THERE'S A COST IMPACT OF $56,000 TO, UH, MITIGATE THAT CONTAMINATED SOIL.

THE DESIGN TEAM MADE AN ASSUMPTION THAT THE EXISTING 1911 AND 1950S BUILDING WOULDN'T HAVE TO BE SPRINKLED BASED ON THE, THEIR POINT OF VIEW, HOW THEY, UH, CLASSIFIED THAT PART OF THE BUILDING.

THEY LATER FIND OUT, THEY LATER FOUND OUT AS THE DESIGN PROGRESSED THAT THE, THAT COMPONENT OF THE BUILDING WOULD HAVE TO BE SPRINKLED.

SO THERE WAS WHY, WHY? OH, THE WAY, UH, THE WOOD CONSTRUCTION AND THE ARCHITECT, UH, MADE A BAD ASSUMPTION.

WHO HIRED THEM? THE CITY DID.

WERE Y'ALL INVOLVED IN THAT PROCESS? NO, THEY WERE HIRED EARLY ON BEFORE US.

BUT WE'VE WORKED WITH ARCHITECTS AS THAT ARE CURRENTLY WORKING WITH ARCHITECTS.

YEAH, THEY, THEY MADE A MISTAKE ON AN ASSUMPTION.

CAN YOU TELL ME, AND YOU MAY NOT HAVE THE FIGURES, UH, RIGHT OFF, BUT CAN YOU TELL, UH, COUNCIL HOW MUCH MONEY, UH, HAS BEEN PAID OUT SO FAR FOR THIS PROJECT AND, UM, AT WHAT STAGE IN THE PROJECT ARE WE AT? OKAY.

SO TO DATE, 4.5 MILLION HAS BEEN APPROVED AND CONTRACTED WITH THIS CONTRACTOR.

THEY'VE COMPLETED THE UNDERGROUND INFRASTRUCTURE, THE SANITARY SEWER, THE STORM SEWER, AND THE UNDERGROUND ROUGHING ELECTRICAL FOR THE LIGHT FIXTURES THAT ARE IN THE PARKING LOT.

THEY'VE BEGUN TO INSTALL SOME OF THE FOUNDATION SYSTEM.

THEY HAVE PUT A, UH, BEGIN TO PROCURE THE ELEVATOR AND THE STRUCTURAL STEEL SYSTEM AND THE LONG LEAD ELECTRICAL SWITCHGEAR.

SO THOSE ARE ALL IN PROCUREMENT, BUT NOT YET DELIVERED.

SO THE STRUCTURAL STEEL IS IN SOME PHASE OF FABRICATION, AND WE'LL NEED TO FIND OUT WHERE THEY ARE IF A DECISION IS MADE TO DE SPOOL THE PROJECT AND STOP.

WHERE ARE WE IN THE SWITCHGEAR MANUFACTURING? WHERE ARE WE IN THE STRUCTURAL STEEL MANUFACTURING, AND WHERE ARE WE IN THE, UM, ELEVATOR MANUFACTURING? SO YOU'RE SAYING THAT THE END GROUND U UTILITIES ARE COMPLETED, THE END, THE END GROUND UN THE END GROUND SANITARY AND STORM SEWERS ARE COMPLETED? YES, SIR.

AND THE PARKING PROBABLY ABOUT 90% OF THE PARKING LOT AS DESIGNED HAS BEEN POURED OR PROBABLY CLOSER TO 80%, BUT QUITE A BIT OF THE PARKING LOT HAS BEEN POURED.

SO IF, IF WE, THE CITY DIDN'T PUT ANOTHER PENNY OUT TOWARD THIS PROJECT, WHAT ELSE WOULD BE COMPLETED? UH, AS TO WHAT'S BEEN PAID? WE WOULD HAVE THE STRUCTURAL STEEL SYSTEM THAT IS DUE TO, TO COME TO US AND BE DELIVERED.

WE'D HAVE THE ELEVATOR AND THEN WE'D HAVE THE SWITCH GEAR.

AND I BELIEVE, SO FOR THE CURRENT DESIGN, ALSO, THE HVAC SYSTEM WAS OUR LONG LEAD.

HVAC, I'M SORRY.

YOU'RE RIGHT.

SOME LONG LEAD H UH, THE AIR HANDLERS BASED ON THE CURRENT DESIGN.

WELL, SIR, I HAVE, I HAVE TO TELL YOU, UM, BEING IN CONSTRUCTION MYSELF AND BUILDING A LOT OF MY OWN FACILITIES OVER THE YEARS MM-HMM .

IF I WENT TO MY BANK WITH, WITH THIS INFORMATION, THEY'D LAUGH ME OUT OF THE OFFICE.

YOU KNOW, WHEN I START, BEFORE I EVER SCRATCH DIRT ON A PROJECT, I'VE GOT TO GIVE THEM THE SCOPE OF WORK AND THE COST

[00:30:01]

BEFORE THEY APPROVE IT.

AND ONCE THEY APPROVE IT, I'VE GOTTA JUMP THROUGH SOME SERIOUS HOOPS TO GET ANOTHER DOLLAR OUT OF THEM.

AND I JUST CAN'T HELP BUT BE FRUSTRATED WITH THE FACT THAT THIS, I'M, I'M THE NEWEST PERSON ON THIS COUNCIL.

BUT CONSTANTLY WE HAVE SITUATIONS TO WHERE WE THINK WE KNOW WHAT WE'RE GONNA PAY FOR SOMETHING ONLY TO HAVE TO HAVE TO COME BACK AND PEOPLE ASK FOR MORE MONEY.

AND I'M, I'M DONE WITH THAT.

I'M DONE WITH IT.

UNDERSTOOD.

CAN YOU GO BACK TO THE FIRST PAGE? SO WHAT'S THE TOTAL, TOTAL BUDGET FOR THIS WHOLE PROJECT? THE TOTAL CONSTRUCTION COST FROM THE WHOLE PROJECT? UH, THE TOTAL CONSTRUCTION COST FROM THE PROJECT.

THE BUDGET IS 12.2.

AND THEN WITH THE INCREASE AT 16, NINE, WE'VE GOT, BECAUSE THE 16 NINE REPRESENTS A DUPLICATE SCOPE THAT TURNER IS CARRYING, AND THE CITY'S CARRYING THE TOTAL OVERRUN IS 4 MILLION, NOT 4.7.

THE RE THE REASON I'M ASKING YES, SIR.

AND I'M NOT TRYING TO DISPARAGE ANYBODY ON THE CITY COUNCIL, HOWEVER, UH, I DON'T THINK ANYBODY ON THIS COUNCIL, EVEN IN THE BUILDINGS THEY'VE BUILT, OR THE CONSTRUCTION COMPANY THEY DEAL WITH, HAVE EVER DEALT WITH PROJECTS THIS SIZE MM-HMM .

AND HAVE A COMPLETE UNDERSTANDING OF THE, THE CURRENT STATUS OF THE WAY THINGS GO.

LIKE YOU'RE SAYING, PROCUREMENT OF SWITCHES AND THE THINGS THAT HAVE HAPPENED MM-HMM .

AND WHETHER WE WANNA MENTION TARIFFS OR NOT, THERE'S STILL GONNA BE A TOPIC WHEN IT COMES TO WHAT EVERYBODY'S DOING WHEN IT COMES TO THEIR PRICING, THEY'RE GONNA INCLUDE IT WHETHER WE WANT TO HEAR IT OR NOT IN THAT, IT'S WHAT WE'RE SEEING IN THE MARKETPLACE.

AGAIN, IT'S NOT A POLITICAL STATEMENT, IT'S, IS IT, I DID WORK FOR A COMPANY THAT BUILT THIS VOLUME OF STUFF MM-HMM .

AND I DON'T THINK WHAT YOU'RE SHOWING US IS UNREASONABLE.

I'M NOT SAYING I AGREE WITH EVERYTHING THAT'S ON THERE.

AGREE.

BUT I UNDERSTAND WHAT YOU'RE EXPLAINING BEHIND THE PROCESS MM-HMM .

IN GENERAL.

SO I JUST WANT YOU TO KNOW THAT IT'S NOT A HUNDRED PERCENT MUTUAL THING UP HERE ON THE CITY COUNCIL DIOCESE AGREEING TO THE ARGUMENTS BEING MADE.

YES.

HOW LONG HAVE YOU BEEN DOING WHAT YOU'RE DOING FOR THIS PROJECT? HOW MANY YEARS? I MEAN, WHAT KIND OF EXPERIENCE DO YOU HAVE? SO I'VE STARTED MANAGING, SO 42 YEARS SINCE I GOT OUTTA COLLEGE.

STARTED, WORKED AS A, UH, LANDSCAPE ARCHITECT FOR FIVE YEARS AND WORKED UNDER LOCKHEED'S FACILITIES GROUP FOR FIVE YEARS.

WENT TO WORK FOR A LOCAL DEVELOPER IN FORT WORTH FOR ALMOST FIVE YEARS.

IT WAS IN 20, UH, WOULD'VE BEEN 2008 THAT WENT TO WORK FOR THE STAUBACH COMPANY.

AND AS OWNER'S REP AND PROJECT MANAGER, I'M SORRY, 2004 OWNER'S REP.

SO FROM 2004 TO 2025, I'VE BEEN DOING PROJECT MANAGEMENT AND OWNER'S REPRESENTATION.

OH.

FOR PROBABLY ALMOST $4 BILLION WORTH OF WORK DELIVERED, UH, FOR BELL HELICOPTER, VERIZON.

UH, WE'RE CURRENTLY IN THE CITY OF MIDLOTHIAN, CITY OF BURLESON.

UH, WE'RE IN THE PRIVATE SECTOR.

WE'RE IN THE HEALTHCARE DOING WORK FOR BAYLOR SCOTT AND WHITE MIDLAND MEMORIAL HEALTH FOR FORTUNE 100, FORTUNE 500.

SO 42 YEARS.

AND AS A FIRM.

SO IN 2016, LEFT JLL AND STARTED OUR OWN COMPANY.

AND THEN NEXT YEAR WE ARE 10TH ANNIVERSARY.

THANK YOU FOR THAT INFORMATION.

IN ANY OTHER ANCILLARY SPACE OR SUPPORT SPACE WITHIN THE BUDGET THAT'S REMAINING.

SO YOU GOT A LOT OF EXPERIENCE.

YES, MA'AM.

IF THIS WERE YOUR MONEY, YOUR PERSONAL, UM, FUNDS, WOULD YOU CONTINUE THIS PROJECT? TO ME, IT WOULD DEPEND ON WHAT IS THE PRIORITY BASED ON THIS NEW INFO.

THIS LATEST INFORMATION IS THE PRIORITY TO BUILD OUT A FACILITY THAT WILL PROVIDE ENOUGH ROOM TO BRING THE STAFF THAT'S CURRENTLY IN THE ANNEX AND PUT 'EM IN THIS NEW COUNCIL CHAMBER, NEW COUNCIL AND OFFICE AREA.

SO YOU HAVE THE GROWTH FOR THE NEXT 15, 20 YEARS, OR IS THE PRIORITY PER, UH, COUNCILMAN ATKINS.

WE'RE NOT PAYING ANOTHER PENNY.

IF THAT'S THE PRIORITY, THEN WE GO BACK AND DE SPOOL THE PROJECT, FIND OUT HOW MUCH WE CAN GET BACK ON THE STEEL, THE ELEVATOR, UH, SWITCH GEAR, WHERE ARE WE FOR, UH, TO GET ANY OF THAT MONIES BACK, AND THEN RE-SCOPE AND REDESIGN THE PROJECT BASED ON THE CURRENT MARKET ENVIRONMENT OF CAN WE DELIVER A NEW COUNCIL CHAMBER

[00:35:01]

SO IT, IT'S COMPETING PRIORITIES OF, OF WHAT YOU'D WANT TO DO.

I MEAN, IT, I, IT TOTALLY SUCKS.

I'VE IN SINCE 2004, THIS IS THE FIRST TIME FOR ME TO GO IN FRONT OF A COUNCIL TO SHOW THIS AMOUNT OF A BUDGET BUST.

OR ACTUALLY FOR THAT FACT, ANY AMOUNT OF A BUDGET BUST IT, IT, IT'S, IT'S HORRIBLE.

I APPRECIATE THAT INFORMATION.

YES, MA'AM.

IS IT REALISTIC TO THINK THAT WE MIGHT BE ABLE TO GET, IF WE WERE TO UNSPOOL THAT ANY OF THOSE STEEL OR WATER WOULD REFUND ANY OF OUR MONEY? I WOULD NEED, I THINK WE WOULD NEED TO TAKE THE TIME TO LOOK AT IT, MEET WITH THE ARCHITECT, GET WITH TURNER, FIND OUT WHAT THE DE SPOOLING AND THE CLOSEOUT COST IS.

IF WE DECIDE TURNOVER DONE, AND WE'RE JUST GONNA STOP THE PROJECT AND REASSESSMENT REASSESS IT, IT'D PROBABLY TAKE A MONTH TO TWO MONTHS OF THEIR GENERAL CONDITIONS TO TERMINATE SUBCONTRACTS, FIND OUT WHAT WE STILL HAVE COMING TO AS IF A ELEVATOR ISN'T IN FABRICATION YET, THEN WHAT'S THE RESTOCK FEE? CAN WE GET THAT BACK? IS IT WORTH TAKING THE STEEL AS DELIVERED? DO WE SAY, KEEP YOUR STEEL, GIVE US WHAT WE HAVE.

IT'S ALL THOSE NEGOTIATIONS THAT I'D RECOMMEND WE'D GO INTO TO GET AS MUCH MONEY BACK OF THE CONTRACTS THAT HAVE BEEN LET ON THOSE EARLY RELEASE PACKAGES AND SEE WHAT THE RESTOCK FEE IS.

THEN WE COULD UNDERSTAND WHAT OUR REMAINING BUDGET IS, SIT DOWN WITH THE DESIGN TEAM AND SAY, DO WE HAVE ENOUGH BUDGET IN THIS CURRENT PRICING ENVIRONMENT TO DELIVER ONE OF THE TH ONE OF THE TWO LEVELS.

THE CURRENT PROJECT IS A COMPLETE GUT REMODEL, THE LOWER, AND THEN ON THAT NEW ADDITION, THE NEW CITY COUNCIL CHAMBER, THE NEW MUNICIPAL COURTS AND THE SUPPORT SPACES.

SO WHAT IS ESSENTIAL, THE, THE CITY COUNCIL CHAMBER MUNICIPAL COURTS IN THAT SUPPORT SPACE WITH THE NEW PRICING ENVIRONMENT, WHAT CAN WE DELIVER WITH CONFIDENCE AND RELIABILITY AND PUT IT BACK OUT TO BID AGAIN? WHO IS THE DESIGN TEAM ARCHITECTS THROUGHOUT OF DALLAS.

I WANNA FIRE THEM.

LEMME BE JUST OFF THE BAT AFTER, UM, I MEAN, THERE'S THE IN, IN ADDITION TO THE, TO THE FIRE SPRINKLER WHEN THEY CAME TO US A FEW MONTHS AGO AND WANTED $900,000 FOR ASBESTOS, FOR ASBESTOS TREATMENT.

UM, BECAUSE THEY MADE A MISTAKE THERE TOO.

SO THAT'S BEEN, THEY'VE, IF IT'S NOT Y'ALL, THAT'S MISHANDLED THE PROJECT.

THEY CERTAINLY HAVE.

AND YOU'VE STATED AS MUCH MM-HMM .

UM, THERE'S BEEN SOME MISSILES.

I HAVE.

I HAVE ONE OTHER QUESTION FOR YOU.

AND YOU, AND YOU'VE STATED THAT YOU HAVE, UH, FOUR DECADES OF, OF EXPERIENCE DOING THIS.

UM, IN YOUR PROFESSIONAL OPINION, DO YOU SEE ANY DIFFERENCE IN A $1.6 MILLION PROJECT THAT GOES OVER $400,000 VERSUS A 60 MILLION PROJECT DOLLAR PROJECT THAT GOES OVER 4 MILLION IN TERMS OF THE DOLLAR VOLUME? THERE'S THERE, JUST IN TERMS OF ANY, ANY IN GENERAL, WHAT, WHAT, WHAT ARE YOUR THOUGHTS ON THAT? THEY'RE, THEY'RE BOTH OVER BUDGET BY THE SAME PERCENTAGE.

IT SOUNDS LIKE WE'VE GOT SOME DISCUSSIONS TO HAVE DISCUSS ABOUT THIS.

THIS, WE APPRECIATE YOU, UM, YOU KNOW, FILLING US IN AS TO WHERE WE'RE AT.

AND WHAT WE'VE SPENT AND WHAT THE NEW ASK IS.

UH, SO I THINK AT THIS TIME, UH, AS A COUNCIL, UH, AND INTERIM CITY MANAGER, WE'VE GOT, UH, SOME DISCUSSIONS TO HAVE, MA'AM.

YES, MA'AM.

AND ONE MORE THING TO ADD.

IN TURNER'S LATEST GMP, THE BIDS THAT ARE INCLUDED IN THAT ARE THE LAST OF THE SUBCONTRACTORS TO BE SECURED.

THOSE, THAT PRICING IS ONLY BEING HELD THROUGH THE WEEK OF JULY 21ST BECAUSE THOSE WERE BID BACK.

SO WE'VE GOT, THEY'RE COMING TO US SAYING, OKAY, IF YOU DON'T APPROVE THIS NOW, WE CAN'T HOLD THE PRICE.

SO I FEEL LIKE THAT'S, WE WANTED TO KNOW.

Y'ALL SHOULD KNOW.

IT'S BEEN RELAYED TO US.

SO Y'ALL HAVE HAD ALL THIS INFORMATION SINCE MAY 30TH, UH, SINCE, UH, JUNE 16TH.

AND IT WAS SHARED WITH STAFF THEN? UH, YES.

WE TALKED ABOUT IT, BUT SOME THANK YOU VERY MUCH.

SO JU I THINK Y'ALL NEED TO UNDERSTAND THAT, THAT, THAT IF IT'S A DE SPOOLED AND WE THINK ABOUT WHAT WE'RE GONNA DO IN 30 DAYS AND COME BACK, THEN TURNER'S PRICING IS NO LONGER VALID.

AND I, I DO HAVE, 'CAUSE I DIDN'T WANT TO INTERRUPT PEOPLE.

UM, SO BROUGHT UP COVID THAT WAS SUPPLY CHAIN.

[00:40:01]

THEY'RE, THEY'RE GUESSING.

NOW WHAT WE'RE LOOKING AT IS THIS IDEA OF TARIFFS MM-HMM .

AND A PRICING WITH IT BASED ON HERE'S WHAT OUR PRICES ARE NOW AND IF THE TARIFFS HAPPEN, WE'RE GONNA HAVE THIS PRICE.

THEY'RE JUST GUESSING, PERCEIVED OR REAL.

YES SIR.

SO WITH THAT, IS THERE NOT ANY TYPE OF METHODOLOGY OR A REMEDY HERE THAT YES, THAT'S WHAT THEY'RE PERCEIVING, PROJECTING, BUT A REVIEW GOING FORWARD THAT WHATEVER THE PREVAILING MARKET PRICE IS AT THAT TIME, RATHER THAN SAYING WE'RE GONNA ADD 25% TO, YOU KNOW, I, I, I GET CAUGHT UP WHEN SOMETHING, SOME EVENT HAPPENS ON THE OTHER SIDE OF THE WORLD MM-HMM .

THAT MAY AFFECT OIL PRICES AND YOU GO TO THE GAS STATION THE NEXT DAY AND IT'S JUMPED UP 20%.

YES SIR.

WHEN THAT OIL HAS NOT EVEN BEEN PULLED OUT OF THE GROUND, IT'S GONNA TAKE THREE TO SIX MONTHS TO GET HERE AND GET PROCESSED.

SO WITH THIS, AND AS COUNCILMAN WRIGHT SAID THAT IF IT'S IN THERE, THEY'RE GONNA CHARGE IT.

WHETHER THAT'S A PREVAILING PRICE OR NOT.

ABSOLUTELY.

IS THERE NOT A MECHANISM BY WHICH WE CAN ADD TO THAT, THIS YOUR QUOTE, BUT AT THE SAME TIME, WE'RE GONNA TAKE A LOOK BACK AT THAT TIME TO SEE IF THAT'S TRULY THE PRICE.

EVERYBODY'S DOING TO PROTECT THEMSELVES.

OR FORGIVE ME IF I MISUNDERSTOOD YOU, BUT I THOUGHT YOU SAID THAT IT'S LOCKED IN BASED UPON WHAT THEY HAVE PROVIDED.

NOW IT IS THE, THE LANGUAGE THAT THE SUBS ARE PUTTING IN THEIR PROPOSALS AND THEN THE GENERAL CONTRACTORS ARE PUTTING INTO THEIR CONTRACTS NOW TO OWNERSHIP, IS THEY'RE RESERVING THE RIGHT.

THAT IF ANOTHER THEY CALL ACT OF GOD OR DUE TO TARIFF.

I MEAN, THEY'RE PUTTING IT IN THEIR TARIFFS THAT IF THERE'S A TARIFF INCREASE OR IMPACT, IT'S IN THE CONTRACT NOW AND IT'S IN THEIR PROPOSALS.

SO IF YOU DON'T WANNA SIGN IT OR TAKE IT, THEN THAT'S FINE.

BUT YOU ARE, YOU DON'T HAVE THAT SUBCONTRACTOR.

BUT TO A SUBCONTRACTOR, WHAT WE'RE SEEING ON THE COMMERCIAL LEVEL, EVERYBODY'S INCLUDING IT TO PROTECT THEMSELVES.

RIGHT OR WRONG, REAL OR PERCEIVED.

AND THIS IS THE NEW DYNAMIC THAT WE'RE SEEING ACROSS THE BOARD ON OUR PROJECTS THAT IS JUST HORRIBLE.

AND YOU'RE SAYING IT'S NOT FEASIBLE TO GO BACK AND DO A PREVAILING PRICE ON A PROJECT THAT'S GOING TO GO FOR THE NEXT YEAR.

WE, 'CAUSE THAT TARIFF IS BASED UPON WHAT IS PROPOSED IF A DEAL IS NOT DONE RIGHT.

WELL, AND I ALSO THINK WHAT SCARES COUNSEL IS, OKAY, THE 16, WHATEVER THE NUMBER WAS MM-HMM .

AND WE'RE SITTING HERE AND WE'RE SAYING, IT'S LOCKED.

IT'S LOCKED, IT'S NEVER LOCKED.

WE'VE EXPERIENCED RIGHT.

SIX MONTHS DOWN THE ROAD, THEN THERE'S A CHANGE ORDER OF SOME SORT THAT COMES IN.

RIGHT.

AND IT'S THAT THAT FIGURE MIGHT HAVE BEEN LOCKED, BUT THERE'S SOMETHING ELSE ALL OF A SUDDEN.

YES.

AND AND YOU'RE MAKING A GREAT POINT.

'CAUSE THESE LATEST PROPOSALS THAT HAVE COME IN FROM THESE SUBCONTRACTORS, THEY'RE NOW INCLUDING THAT, THAT INCLUSION OF, IF THAT WE RESERVE THE RIGHT TO RAISE IT IF THERE'S A TARIFF INCREASE.

SEE, AND THE, THE FRUSTRATION WITH, I KNOW AT LEAST TWO OF US UP HERE, 'CAUSE WE'VE BEEN THROUGH, THROUGH THIS WITH PREVIOUS STRUCTURES AND THEN COUNCILMAN WRIGHT AND SUITOR, I KNOW AT LEAST ONE OTHER IS THAT THIS IS A, THIS IS A CONCERNING PATTERN ON ANYTHING THAT WE'VE CONSTRUCTED.

WHERE IT STARTS OFF AT 12 AND THEN IT GOES TO 16 AND THEN IT'S GONNA BE 20 AND THEN WE GOTTA BUY FURNITURE AND NOW IT'S 23 MILLION IN.

AND THAT'S NOT WHAT THIS WAS SUPPOSED TO BE.

I'LL BE COMPLETELY HONEST WITH YOU, I DON'T THINK I'VE SEEN THE FINAL RENDERING OR DESIGN OF WHATEVER THIS STRUCTURE EVEN IS.

I KNOW I'VE SEEN NO SPECS OF INTERIOR OR ANYTHING.

SO THAT'S, THAT'S A LITTLE TOUGH FOR US TO EVEN, OR FOR ME TO EVEN GET ON BOARD BOARD WITH ANY OF THIS MM-HMM .

TO GO FORWARD.

AND WE HAVE SEVEN DAYS TO FIGURE IT OUT AT THE CURRENT PRICE OF THE CURRENT PROJECTIONS.

SO I DON'T KNOW.

MAD MAYOR IF WE NEED TO HAVE A EMERGENCY EMERGENCY WORK SESSION OR SOMETHING.

'CAUSE WE, WE GOTTA SIT DOWN MM-HMM .

AND, AND DISCUSS THIS IN DEPTH.

ANY OTHER QUESTIONS BEFORE WE MOVE ON? THANK YOU.

BEEN IN FORT WORTH FOR 42 YEARS.

APPRECIATE IT.

I THINK ANYTHING THAT YOU COULD PROVIDE US IN ADDITION TO THIS IN AN EMAIL OR WHATEVER ELSE, UH, TO HELP US START TO DIGEST THIS WOULD BE ABSOLUTELY VERY HELPFUL.

YOU CAN GIVE A SUMMARY.

'CAUSE WE'VE BEEN ON OUR TEAM.

AGAIN, EVERY APPROACH THAT WE TAKE IS WE, OUR APPROACH IS, IS WE'RE YOUR FIDUCIARY AND WHAT, TO YOUR POINT, WHAT WOULD WE DO IF IT WAS OUR MONEY? I MEAN, MY NAME'S ON THIS COMPANY.

I'M NOT WITH JLL OR STAUBACH ANYMORE.

THIS IS ARI MANAGEMENT GROUP.

SO WE'RE NOT GONNA MISMANAGE SOMETHING AND WE AREN'T GOING ANYWHERE.

WE'VE BEEN IN FORT WORTH, I'VE

[00:45:01]

SO, UH, IT COMPLETELY SUCKS TO HAVE TO DELIVER THIS INFORMATION WHEN YOUR NAME'S ON THE COMPANY.

AND SO WE HAVE BEEN AS, AS, AS A GROUP AND EVEN WITH THE DESIGN TEAM AND WORKING WITH STAFF, WHAT ARE, WHAT ARE ALTERNATIVES? WHAT ARE OPTIONS TO BE ABLE TO STILL DELIVER A FACILITY THAT CAN GET YOU A NEW COUNCIL CHAMBER? THAT WAS THE BEGINNING.

THE CATALYST BACK IN, UH, UH, UH, OR THE GENESIS BACK ALMOST PROBABLY TWO AND A HALF YEARS NOW, GOING BACK ON THE ORIGINAL PROJECT, IS WE NEED NEW, NEW CITY COUNCIL SPACE AND WE NEED TO UPDATE IT AND, AND MORE OFFICES.

SO WHAT OPTIONS ARE OUT THERE? AND WE'RE HAPPY IF WE NEED TO COME BACK AND SIT DOWN DURING THE WEEK BEFORE COUNCIL AND SAY, HERE'S SOME IDEAS.

WE'RE THINKING ABOUT POTENTIAL SOLUTIONS.

WE'RE GO BACK TO THE DESIGN TEAM.

OR WE CAN JUST ON OUR OWN, GO BACK TO IT, WHATEVER WE'RE DIRECTED TO THE DESIGN TEAM AND SAY, IS IT FEASIBLE WITH THE DOLLARS THAT ARE LEFT OVER AT THE CURRENT MARKET, COST PER SQUARE FOOT? HOW MANY SQUARE FEET WOULD BE NEEDED FOR A COUNCIL SPACE AND THE SUPPORT SPACE? AND DO WE WANT TO, THAT THAT'S ONE OPTION.

DO WE KEEP EVERYBODY IN THE EXISTING, UH, SECOND FLOOR AND THIRD FLOOR IN THOSE OFFICES? KEEP 'EM THERE.

AND THEN NOW WE'RE JUST ADDING THAT COUNCIL SPACE.

CAN I DO LIKE TRAVIS, MR. SMITH DOWN THERE AND ASK YOU A FAVOR? YES, SIR.

'CAUSE THAT DIDN'T HAVE, IT WAS PRESENTED TO US.

IT WAS NOT PRESENTED THAT WE NEEDED COUNCIL SPACE AND THEN THIS OTHER STUFF , IT WAS PRESENTED.

WE NEED MUNICIPAL COURT SPACE YES.

AND OFFICE SPACE AND ALL THAT.

THAT'S RIGHT.

AND SINCE THE CHAMBERS MEETS OVER HERE, WE WILL REDO THE COUNCIL CHAMBERS.

THE REASON I'M SAYING THAT IS YES, BECAUSE THE PUBLIC THAT'S WATCHING THIS MM-HMM .

OH, THESE GUYS JUST WANTED THEM A NICE FANCY, LUXURIOUS COUNCIL CHAMBER THAT THAT WAS NOWHERE IN THE DECISION MAKING PROCESS.

IT HAD NOTHING TO DO WITH IT.

NO.

AND AND THAT'S A GREAT POINT THERE.

THERE'S A, SO THERE'S PROBABLY A LIST OF WHAT, 10, 12 DIFFERENT DEPARTMENTS AND FUNCTIONS SURE.

THAT WERE PLANNING TO GO IN THE BILL INTO THE BUILDING, UH, UTILITY BUILDING MUNICIPAL COURT, UH, THE MARSHAL'S OFFICE.

UH, I APPRECIATE PLANNING, UH, UTIL YES, SIR.

ALL OF IT.

WE'RE GONNA CONVENE INTO EXECUTIVE SESSION, UH, TO CONSULT WITH THE CITY ATTORNEY REGARDING LEGAL ISSUES RELATED TO THE CITY MANAGER.

WE CAN, WE CAN GET THAT RESENT BACK OUT TO EVERYONE TOMORROW MORNING, FIRST THING.

[8. Convene into Executive Session to deliberate the appointment of an Interim City Manager as permitted by Texas Government Code, Section 551.074, and consultation with the City Attorney regarding legal issues related to the city manager transition, as permitted by Texas Government Code, Section 551.071, and all matters incident and related thereto ]

TRANSITION IS PERMITTED BY TEXAS GOVERNMENT CODE IN ALL MATTERS INCIDENT AND RELATED THERETO.

[10. Comments by Mayor, City Council, City Attorney and City Manager ]

UH, WE CAN DO COMMENTS, UH, BEFORE WE GO, UH, BY THE MAYOR, CITY COUNCIL, CITY ATTORNEY, AND INTERIM CITY MANAGER.

I'LL START TO MY RIGHT.

TERRY, DO YOU HAVE ANYTHING? NOTHING, MADAM MAYOR.

THANK YOU COUNCILMAN WRIGHT.

I DO HAVE A STATEMENT AND I DID HAVE THIS REVIEWED BY AN ATTORNEY TO MAKE SURE I WASN'T BREAKING ANY LAWS OR ANYTHING WHEN IT COMES TO, UH, EXECUTIVE SESSIONS.

SO I USUALLY DON'T WRITE ANYTHING DOWN AND READ IT OFF OF A PIECE OF PAPER, BUT I WANTED TO MAKE SURE THAT I HAD THIS EXACTLY THE WAY I MEANT TO SAY IT AND DIDN'T SKIP IT.

SO THIS LAST WEEK'S BEEN A VERY DIFFICULT ONE FOR ALL PARTIES INVOLVED IN THE CHANGE OF THE CITY MANAGER.

THERE HAVE BEEN COMMENTS MADE PUBLICLY AND ON SOCIAL MEDIA THAT MR. SCOTT WAS TERMINATED BY UNANIMOUS VOTE OF THE CITY COUNCIL.

THAT'S NOT A TRUE STATEMENT BY LAW.

I'M NOT ALLOWED TO DISCUSS THE INNER WORKINGS IN AN EXECUTIVE SESSION HELD BY CITY COUNCIL.

HOWEVER, I CAN SAY AT NO TIME WAS I EVER SUPPORTED OR EVER DID I EVER VOTE TO TERMINATE MR. SCOTT.

I WOULD NOT DO THAT WITHOUT HAVING, GIVING HIM THE CHANCE TO DIRECT ANY SHORTCOMINGS THAT WE MAY HAVE THOUGHT HE POSSESSED AS CITY MANAGER.

FOR EXAMPLE, THIS, THIS, AND THIS HAVE TO IMPROVE.

AND YOU HAVE A CERTAIN TIMEFRAME, THAT TYPE OF SCENARIO.

ONCE WE WERE IN OPEN SESSION, A VOTE WAS TAKEN TO APPROVE THE SEPARATION OF MR. SCOTT.

THAT TERMINOLOGY WAS WORKED OUT BETWEEN THE CITY ATTORNEY, THE MAYOR, AND MR. SCOTT.

ONCE AGAIN, I DID NOT VOTE TO TERMINATE MR. SCOTT.

IT WAS OBVIOUS THAT HIS EMPLOYMENT WOULD END AT THE, THAT EVENING REGARDLESS OF WHAT MY VOTE WAS.

AND SINCE MR. SCOTT AND THE CITY ATTORNEY ALONG WITH THE MAYOR HAD COME TO TERMS ON THE WORDING AND TO MY UNDERSTANDING WAS THAT HE WAS NOT BEING TERMINATED AND HE WAS NOT RESIGNING.

THE SEMANTICS, I REALIZE IS JUST SEMANTICS, BUT WE WERE AGREEING THAT IT WOULD BE A SEPARATION.

THEY G AGREED TO CALL IT A SEPARATION AGREEMENT WITHOUT EITHER PARTY CLAIMING OTHERWISE.

THANK YOU MAYOR PRO TIM SUITER, UM, TODAY IS AN EXAMPLE, AND I, MR. WRIGHT JUST ALLUDED TO IT, THAT FOLKS THINK THAT WE WANT TO BUILD A TAJ MAHAL OR WHATEVER IT IS ON TAXPAYER'S MONEY.

AND THIS IS A PRIME EXAMPLE OF THINGS THAT WE GET HIT

[00:50:01]

WITH, WHETHER IT'S, WHETHER IT'S, UH, THE ECONOMY OR WHATEVER.

AND I THINK THAT YOU SEE A CONSISTENCY UP HERE OF THE FIVE MEMBERS OF THE WAXAHATCHEE CITY COUNCIL THAT WE ARE TRYING TO BE GOOD STEWARDS OF MONEY.

IF NOT, WE COULD HAVE GONE AHEAD AND SAID, SOUNDS GOOD TO US, LET'S GO AHEAD AND MOVE FORWARD.

YOU DID NOT HEAR THAT FROM ANYBODY UP HERE.

UM, THERE ARE A LOT OF THINGS THAT GO INTO THIS, WHETHER IT WAS ISSUES AS TO PLANNING OR, OR ESTIMATES OR WHATEVER.

UM, YOU CAN SEE A BIG PART OF THIS AS WE TALKED ABOUT, WAS THIS CONCEPT THAT THERE MAY BE A TARIFF.

WELL, YOU KNOW, I'M, I MAY BE ABLE TO WALK DOWN THE STREET AND, UH, BUY SOMETHING FROM SOMEBODY, BUT IF THEY COME BACK AND SAY THAT THEY'RE GOING TO CHARGE ME THREE TIMES AND IT'S UP TO US TO, OR ME TO MAKE A DECISION WHETHER I'M GONNA DO IT.

AND I THINK THAT YOU'VE SEEN A COMMITMENT BY COUNSEL UP HERE NOT TO SPEND TAXPAYER MONEY IN SITUATIONS LIKE THIS.

YES, WE WOULD LIKE TO HAVE A, UH, NEW COUNCIL'S, UH, UH, ROOM AND, AND COURTHOUSE AND, AND, UM, MUNICIPAL COURT, THOSE TYPES OF THINGS.

BUT PLEASE RECOGNIZE WHEN I SEE PEOPLE THAT SAY THEY'RE JUST SPENDING OUR MONEY OR SOMEBODY'S ON THE FIX OR WHATEVER, THAT THAT IS JUST TOTALLY, ABSOLUTELY WITHOUT BASIS AND RIDICULOUS.

PEOPLE SAY, WHY DON'T YOU POST ON SOCIAL MEDIA? IT'S FOR THAT REASON RIGHT THERE, BECAUSE YOU HAVE FOLKS THAT WILL THINK THESE TYPES OF THINGS WITHOUT ANY BASIS WHATSOEVER.

AND I REFUSE TO BUY INTO IT.

THANK YOU, MAYOR.

Y'ALL HAVE ANYTHING DOWN THERE? SEAN? TRENTON, ALBERT? NO.

COUNCILMAN SMITH.

I COMPLETELY AGREE WITH BOTH.

UH, COUNCILMAN WRIGHT AND SUITOR.

IT'S BEEN FRUSTRATING TO SEE FOLKS CLAIM THAT WE'VE DONE THINGS THAT WE HAVEN'T DONE OR WE'VE APPROVED THINGS WE DIDN'T KNOW ABOUT OR THAT, AND I APOLOGIZE PUBLICLY, BUT MY FRUSTRATIONS ARE BEING SURPRISED BY, UH, SOMETHING THAT'S OVER BUDGET THAT QUITE LITERALLY I'VE NEVER SEEN RENDERING OF THE INSIDE OF NO PROBLEM.

UM, TOTALLY UNDERSTAND.

SO TO BOTH OF THEIR POINTS, UM, YES, THIS PAST WEEK HAS BEEN VERY, VERY CHALLENGING.

UM, BUT I APPLAUDED ALL FIVE OF US UP HERE.

UM, I THINK WE'VE HANDLED IT PRETTY DANG WELL SO FAR.

UM, AND I AGREE WHOLEHEARTEDLY WITH COUNCILMAN SER THAT WE'RE NOT UP HERE TRYING TO SPEND MONEY.

WE'RE TRYING TO, TO ONLY DO WHAT'S ABSOLUTELY NECESSARY AND TO DO THAT AS COST EFFECTIVE AS WE POSSIBLY CAN.

AND IF THAT MEANS WE HAVE TO MEET IN HERE FOR THE NEXT FOUR YEARS, AND BY GEORGE, WE WILL MEET IN HERE FOR THE NEXT FOUR YEARS.

UM, SO THAT'S ALL, THAT'S ALL I GOT.

COUNCILMAN ATKINS.

I'M GONNA CHOOSE MY WORDS VERY WISELY FOR, UH, FEAR OF HAVING TO, UH, SETTLE UP ON AN AGREEMENT THAT IF I EVER LOST MY COMPOSURE UP HERE, THAT IT WOULD COST ME A STEAK DINNER.

I AM EXTREMELY FRUSTRATED WITH WHAT WE'RE DEALING WITH HERE.

IT, IT, IT GOES AGAINST EVERYTHING I STAND FOR.

AND I MAY NOT HAVE EVER BUILT A 16 OR $17 MILLION PROJECT, BUT I'VE SPENT MOST OF MY ADULT LIFE WORKING ON BIG PROJECTS, MULTIMILLION DOLLAR PROJECTS.

AND THIS, THIS LACK OF INFORMATION, THIS UNKNOWN THAT WE ARE EX, THAT WE ARE ALL BUT EXPECTED TO ACCEPT, GOES AGAINST EVERYTHING IN MY, IN MY BEING.

AND IT'S, IT'S, IT'S GONNA STOP ONE WAY OR ANOTHER.

SO THAT'S ALL I HAVE TO SAY.

CHIEF BOYD? YES.

THANK YOU, UH, MAYOR AND COUNCIL.

I APPRECIATE THE OPPORTUNITY TO SERVE IN THIS CAPACITY.

UM, I LOOK FORWARD TO THE CHALLENGES THAT WE WILL HAVE, BUT I SEE 'EM AS OPPORTUNITIES TO, UH, IMPROVE AND, UM, I LOOK FORWARD TO WORKING WITH THE DIRECTORS AND THE ALL OF STAFF IN A NEW CAPACITY AND WORKING WITH Y'ALL CLOSELY IN THIS TRANSITION PERIOD.

SO THANK YOU.

UM, GO HOME AND GET SOME REST AND DO SOMETHING FUN.

I DON'T HAVE ANY COMMENT.

WE'RE GONNA CONVENE INTO EXECUTIVE SESSION.

FEEL FREE TO STAY HERE OR,

[00:55:01]