* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. ALL RIGHT. [00:00:01] GOOD [I. INVOCATION, PLEDGE & ROLL CALL] MORNING. GOOD MORNING. RECORDING IN PROGRESS. WELL, GOOD MORNING. WE ARE HERE FOR OUR CITY COUNCIL SPECIAL MEETING, NOVEMBER THE, UH, NOVEMBER 12TH, WEDNESDAY, NOVEMBER 12TH AT 10:00 AM YOU MAY JOIN US. UH, JOIN IN WITH US BY TELEPHONIC AND OUR VIDEO CONFERENCE, AND YOU CAN DO SO BY CALLING 8 7 7 8 5 3 5 2 4 7 OR 8 8 8 7 8 8 0 0 9 9. YOU, UM, AFTER DIALING A NUMBER, PLEASE ENTER OUR MEETING ID, WHICH IS 8 5 0 5 0 8 3 7 7 6 2, AND THEN PUT IN THE PASSCODE 7 8 9 4 2 3. WE WANNA MAKE SURE THAT WE'RE IN COMPLIANCE WITH THE AMERICAN WITH DISABILITIES ACT. YOU ALSO MAY JOIN US. WE HAVE, WE WOULD LIKE FOR YOU TO REQUEST THIS 24 HOURS IN ADVANCE BY CALLING OUR CITY SECRETARY'S OFFICE AT 4 0 9 9 8 3 8 1 1 5. AT THIS TIME, IF YOU WOULD, EVERYONE WOULD MUTE THEIR CELL PHONES, TURN OFF OUR MOBILE DEVICES, AND OR TURN THEM OFF. WE'RE GOING TO START WITH OUR INVOCATION, OUR PLEDGE AND ROLL CALL. COUNCILMAN KINLAW, IF YOU WOULD LEAD US IN PRAYER. YES, MAYOR, WILL YOU STAND BY WITH ME OR HEAVEN? FATHER, THANK YOU ONCE AGAIN FOR BLESSING THIS COUNCIL, THIS CITY, UH, THANK YOU FOR THIS MEETING THAT WE'RE HAVING, THAT WE CONDUCT IN YOUR BUSINESS, IN YOUR WAYS. CONTINUE BLESSING ALL THE CITIZENS AND STUDENTS AND THIS GREAT CITY OF PORT ARTHUR, TEXAS. WE ASK ALL THESE BLESSING YOUR SON JESUS NAME, I PRAY, WE PRAY. AMEN. AMEN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVIDUAL WITH LIBERTY AND JUSTICE LAW. AT THIS TIME, CITY SECRETARY WILL ESTABLISH A QUORUM, PLEASE. MAYOR MOSES. HERE, MAYOR PRO. TIMM ETT. HERE. COUNCIL MEMBER LEWIS. COUNCIL MEMBER HAMILTON, EVER FIELD PRESENT. COUNCIL MEMBER BECKHAM. HERE. COUNCIL MEMBER KINLAW. HERE. COUNCIL MEMBER FRANK. HERE. YOU HAVE A QUORUM, MAYOR. THANK YOU. CITY SECRETARY. AT THIS TIME, WE'RE [II. WORKSHOP] GOING TO HAVE A, UH, CONDUCT A WORKSHOP THAT WE'VE BEEN CALLED TOGETHER. IN PARTICULAR, THE, UM, IN THE WORKSHOP WILL BE COMPRISED OF US, UM, HAVING THE OPERATIONS OF OUR CITY, CITY OF PUERTO ARTHUR LANDFILL. UH, CAN I TURN THIS OVER TO WHO'S GOING TO INSTRUCT THE ORDER OF THAT? YES. OH, THE, UM, JUST THE MAKING SURE THE IT IS GO. OKAY. ALRIGHT. WELL, WE'LL JUST WAIT HERE. DO WE KNOW IF THERE'S AN AGENDA BASICALLY WITH THE ORDER OF THE, UH, LANDFILL, I MEAN, HOW IT'S GOING TO BE CONDUCTED, LIKE THE, THE, UH, PRESENTATION AND THEN WE HAVE RESPONSES, OR, THAT'S CORRECT. YEAH. I, I SEE THE GUYS COMING, BUT I KNOW WE'RE JUST DOING, WE'RE JUST HERE FOR THE PRESENTATION AGAIN. ARE WE GONNA QUESTION AND ANSWER? UM, THE, THE, JUST THE AGENDA OF, I KNOW WE HAVE A, THE COUNCIL AGENDA, BUT HOW THE FLOW WILL GO WORKSHOP MAYOR, MY UNDERSTANDING IS THAT THE GENTLEMEN ARE GOING TO MAKE A PRESENTATION FIRST AND THEN THAT WOULD BE FOLLOWED BY QUESTIONS FROM THE COUNCIL, SHOULD THEY HAVE ANY REGARDING THE PRESENTATION. OKAY. I HAVE A QUESTION. OH, COUNCIL MEMBER DOUCETTE? YES. THIS PRESENTATION IS THE ONE WE HEARD WE HAD BEFORE. UH, UH, MAYOR PROTO DOUCETTE. I'M NOT FULLY AWARE WHAT THE PRESENTATION WILL COVER. UH, MY UNDERSTANDING IS THE PRESENTATION DOES RELATE TO AN RFP, BUT THERE MAY BE ADDITIONAL ITEMS THAT WILL BE PRESENTED BE BECAUSE WE HAD A PRESENTATION OF THE, OF THE PROJECT, AND IF IT'S MY UNDERSTANDING, WE'RE GOING TO BE PRESENTING SOMETHING ELSE THAT WAS NOT PART OF THE PRESENTATION AND GETTING US TO UNDERSTAND EXACTLY WHAT THIS ENTAILED. 'CAUSE IT SEEMED LIKE WE WERE UNAWARE OF WHAT WAS GONNA BE DONE. AND THAT'S, I'M JUST ASKING WHEN WE START TALKING ABOUT PRESENTATION, IF IT'S GONNA BE ONE. 'CAUSE WE'VE ALREADY HAD ONE. WE JUST NEED TO KNOW WHAT IS THE BASIC AND, AND WHAT'S GOING ON. YEAH. AND BEFORE I, YES, I HAVE YOUR LIGHT ON COUNSEL, BUT YEAH, I ALWAYS WOULD LIKE TO BE PRESENTED WITH HOW THE, THE FLOW OF, UH, WORKSHOP IS GONNA BE HAD. THERE SHOULD BE JUST, I KNOW WE HAVE THIS ON THE AGENDA, WHICH IS OUR REGULAR AGENDA, BUT WE SHOULD BE GIVEN AN AGENDA OF WHAT THE WORKSHOP WOULD ENTAIL. [00:05:01] UM, IT'S A WORKSHOP, IT'S NOT A PRESENTATION. AND SO TO ME, IN A WORKSHOP, THERE ARE, UM, YOU KNOW, THERE, THERE'S SPECIFICS THAT TAKES PLACE AND WITHIN A WORKSHOP. SO, NO, UH, MY QUESTION IS THAT ANYONE IN OUR PUBLIC WORKS DEPARTMENT OR ANYONE WORKING, COLLABORATING WITH THIS, THIS COMPANY, GIVE US AN AGENDA BY WHICH WE SHOULD FOLLOW, UM, ATTACHED TO SEE HOW THIS IS GOING TO, TO GO OUT, HOW THIS IS GONNA PLAY OUT. SO IN, IN, IN THAT, I'M GONNA GO AHEAD AND ALLOW, UM, UM, COUNCIL MEMBER, FRANK, BUT THAT'S MY STATEMENT FOR TODAY. WE SHOULD HAVE SOMETHING TO BE ABLE TO SEE HOW THIS IS GOING TO PLAY OUT, UM, BEFORE US, IF IT'S THE SAME THING. WE AGREE, SAME THING WE'VE SEEN BEFORE. WHAT'S THE DIFFERENCE IN, WE DON'T WANT JUST A PRESENTATION. IT NEEDS TO BE A LITERAL WORKSHOP. OKAY. YES MA'AM. COUNCIL MEMBER, FRANK. NO, I WAS WANTING TO ADD TO THAT, MAYOR THAT THERE MIGHT, IF JUST ASKING IF THERE'S SOME MORE INFORMATION THAT THEY HAVE OTHER THAN THE PREVIOUS WORKSHOP, UH, THAT WE'VE SEEN ALREADY. DO YOU HAVE ANY OTHER INFORMATION THAT MIGHT BE PERTINENT TO WHAT WE'RE, WHAT WE'RE GOING TO BE COLLABORATING ON? OKAY. ALRIGHT. OKAY. THANK YOU. THAT'S WHAT I NEEDED TO KNOW. ALRIGHT. RECORDING IN. WE'LL GO AHEAD AND MAKE THE INTRODUCTION, IF YOU DON'T MIND. WE'RE GOING TO HAND THIS INFORMATION. SURE. THANK YOU. THANK YOU. ONE MORE TIME. OH, ARE WE READY, ? YEAH. OKAY. SORRY ABOUT THAT. I'M SORRY. DISTRACTED. ALRIGHT. GOOD MORNING, MADAM. UM, WE'RE, IF YOU'RE READY, WE'RE READY. OH, OKAY. ? MM-HMM . I'LL WAIT. UH, GOOD MORNING, MADAM MAYOR, HONORABLE COUNCIL, CITY, UH, MANAGER, CITY ATTORNEY, UH, CITY SECTOR. UM, WE, I KNOW DURING OUR LAST PRESENTATION THERE WAS SOME CONFUSION IN RELATION TO CLARIFICATION AS IT RELATES TO WHAT WE PRESENTED. WE'VE BEEN ABLE TO GO BACK. I UNDERSTAND THAT, UH, DURING THE LAST MEETING WE TALKED ABOUT COMING BACK FOR A WORKSHOP. I'M SORRY, IF YOU WOULD DO ME A FAVOR AND STATE YOUR NAME. OH, I'M SORRY. AND YOUR ADDRESS AND, AND SPEAKING THAT MIC A LITTLE BIT MORE FOR ME. OKAY. UH, 'CAUSE WE CAN'T, YOU CAN RAISE IT UP A LITTLE BIT. THERE WE GO. OKAY. THAT MIGHT HELP. OKAY. THANK YOU. MY NAME IS BARRY ING WITH ESG. UM, MY ADDRESS IS 9,900 WEST PARK IN HOUSTON, TEXAS. [00:10:02] I'M HERE WITH ALRIGHT. WITH MY TEAM. I HAVE, UH, KEN SEN, UM, UH, CEO OF THE COMPANY. WE HAVE, UM, HAROLD, HAROLD BARBER AT HIS, UH, TONY. YOU GUYS HAVE MET US, MET HIM SEVERAL TIMES. WE HAVE MIKE RIDGE, CFOI HAVE, UH, PETER, UM, DEREK, AND, UM, AND, UH, UH, IN OUR OPERATION, UM, WORKFORCE. UM, AGAIN, UM, DURING OUR LAST MEETING, THERE WAS SOME CLARIFICATION THAT NEEDED TO BE MADE TO THE CITY COUNCIL. WE'VE GONE BACK AND WHEN THE, UH, CITY MANAGER ADVISED THAT WE, UH, HAVE A WORKSHOP. SO WE WENT BACK TO THE, UH, OFFICE AND, UM, PRETTY MUCH PACKAGE SOME, UM, UM, UPDATES FOR YOU GUYS FOR CLARIFICATION TO BE ABLE TO ASSIST YOU, UH, ASSIST WITH, UH, CURRENT COHERENT, UH, UM, UH, THE, UM, UH, COHERENT, UM, UH, AS IT RELATES TO CLARIFICATION FOR YOUR, UH, UH, UH, TO BE ABLE TO UNDERSTAND WHAT EXACTLY WE'RE DOING HERE. MM-HMM . UM, AT, AT THIS POINT, I THINK I'LL HAVE PETER TO QUICKLY RUN THROUGH THE, THE, THE, THE, UM, THE, THE, THE COMPILATION THAT WE'VE PUT IN BASED ON OUR LAST MEETING, OUR LAST CONVERSATION, SO THAT WE CAN HAVE A BETTER CLARIFICATION AFTER THAT. THEN WE CAN BE OPEN FOR, UM, UM, ANSWERS ANY MORE ADDITIONAL QUESTIONS THAT YOU GUYS MAY HAVE FOR CLARIFICATION. OKAY. THANK YOU. SAID OH, THANK YOU. GOOD MORNING, MADAM MAYOR, HONORABLE COUNCIL MEMBERS, CITY ATTORNEY, CITY SECRETARY OF CITY STAFF. UM, THANK YOU SO MUCH FOR HAVING US HERE TODAY. WE REALLY APPRECIATE THIS. UM, WE REALLY WANT TO TAKE THE TIME TO SHOW YOU GUYS A CLEAR PATHWAY TO CHANGING PORT ARTHUR INTO ONE OF, TO INTO A GLOBAL CASE STUDY. OKAY. I'M SORRY I DIDN'T GET YOUR NAME AND ADDRESS. YES, MA'AM. MY NAME IS PETER, AND MY ADDRESS IS 9,900 WEST PARK DRIVE, SUITE 3 48, HOUSTON, TEXAS 7 7 0 6 3. THANK YOU. YES, MA'AM. OKAY, PERFECT. WE'RE READY FOR YOU TO PROCEED. YES, MA'AM. THANK YOU. THANK YOU. SO WE JUST WANTED TO IDENTIFY A FEW THINGS WHEN IT COMES TO THE MODERNIZATION OF THE LANDFILL FOR PORT ARTHUR, TEXAS. THE FOUR THINGS THAT WE WANT TO GO OVER IN THE WORKSHOP TO PROVIDE FULL CLARITY IS GONNA BE THE MODERNIZATION SCOPE, BRINGING REAL CLARITY TO HOW THIS IS REALLY GOING TO WORK. RIGHT. THE NEXT THING WE WANT TO TALK ABOUT IS THE PARTNERSHIP STRUCTURE. YOU KNOW, UM, HOW WE CAN COME TOGETHER TO REALLY MAKE THIS HAPPEN. THE NEXT THING WE WANT TO TALK ABOUT IS, MOST IMPORTANTLY, THE CITY STAFF AND THE BENEFITS. HOW ARE WE GONNA MAKE SURE THAT EVERYTHING STAYS HERE IN PORT ARTHUR? AND THEN THE LAST THING WE WANT TO TALK ABOUT IS THE FINANCIAL UPSIDE. WE WANNA MAKE SURE THAT YOU UNDERSTAND WHAT IS IN IT FOR THE CITY OF PORT ARTHUR AND WHY WE REALLY FEEL LIKE THIS IS REALLY A SHARED VISION BETWEEN ALL OF US. RIGHT. LEMME SEE HERE. SO, WHEN IT COMES TO THE VISION AND THE PARTNERSHIP, I REALLY FEEL, LIKE I SAID BEFORE, WE HAVE A SHARED VISION. THE BEST WAY TO REALLY FACILITATE A PROJECT LIKE THIS IS THROUGH A PUBLIC PRIVATE PARTNERSHIP. THE REASON BEING IS BECAUSE WITH THAT WAY, THE CITY RETAINS FULL OWNERSHIP, THEY RETAIN FULL AUTHORITY OF THE SITE. OKAY? BUT THEN ALSO IT'S ZERO CAPITAL TO THE CITY FOR THIS WHOLE THING TO HAPPEN, ZERO CAPITAL. AND THEN ON TOP OF THAT, IT TURNS INTO REVENUE SHARING FOR THE CITY. SO THERE'S A ZERO COST INPUT FOR REVENUE SHARING OUTPUT WHEN IT COMES TO THE CITY AND US PARTNERING TOGETHER, IF THAT MAKES SENSE. AND I SAW YOU LOOK UP, I JUST WANNA MAKE SURE I ADDRESS YOUR QUESTIONS. MM-HMM. I'LL GET IT. I I'M WRITING IT DOWN. YES, MA'AM. THANK YOU, MA'AM. THANK YOU, MA'AM. SO, MEANWHILE, WHILE THESE BENEFITS ARE HAPPENING FOR THE CITY, WE, EISG, WE COME IN, WE FUND THE FULL INVESTMENT, WE PROVIDE OPERATIONAL EXPERTISE, AND WE MAKE SURE THAT EVERYTHING IS RUNNING SMOOTHLY WITHOUT ANY KIND OF HICCUPS ON YOUR BEHALF. IT'S IN A SENSE OF LIKE, YOU JUST WENT AND GOT A BRAND NEW REALLY GOOD EQUIPMENT THAT AUTOMATES ITSELF AND YOU GUYS JUST HAVE TO SIT BACK AND MAKE SURE IT'S DOING WHAT IT'S SUPPOSED TO FOR Y'ALL. RIGHT? SO WITH ALL OF THESE THINGS IN MIND, IT EQUATES TO OPTIMIZATION WITH THE MSW WHILE IN ADDING THE INDUSTRIAL CAPABILITY. WHEN YOU HAVE THOSE TWO THINGS IN PLAY, IT NOW TURNS PORT ARTHUR INTO A REGIONAL LEADER IN THE INDUSTRIAL WASTE INDUSTRY. [00:15:04] NOW, WHEN IT COMES TO THE PUBLIC PRIVATE PARTNERSHIP, THIS IS NOT THE FIRST TIME THIS HAS EVER HAPPENED. THIS HAS BEEN DONE MANY, MANY TIMES BEFORE. UM, AS A MATTER OF FACT, UM, WHEN IT COMES TO THE TEXAS CITIES, OVER 65% OF THE CITIES ARE CURRENTLY PARTAKING IN THIS KIND OF PARTNERSHIP RIGHT NOW. UM, WHEN IT COMES TO THE NATION, ACTUALLY UP TO 80% ARE DOING THIS AS WE SPEAK RIGHT NOW. AND THEN WHEN IT COMES TO AN ADOPTION RATE, WHICH MEANS OF THE CITIES THAT ARE NOT DOING IT RIGHT NOW, 40% OF THOSE CITIES ARE GETTING READY TO BEGIN THAT. SO IF YOU LOOK AT THE TRAJECTORY, IT'S ALMOST LIKE THIS IS, YOU KNOW, WITHIN THE NEXT FIVE YEARS, 90% OF THE CITIES WILL BE PARTAKING IN A PUBLIC PRIVATE PARTNERSHIP. THE BENEFITS OF THIS KIND OF MODEL, IT GIVES YOU ACCESS TO PRIVATE CAPITAL. IT, IT ENABLES YOU TO RELY ON US TO DELIVER OUR EXPERTISE. AND IT, IT, IT REALLY JUST ENABLES THE FLUIDITY THROUGHOUT THE WHOLE PROJECT BECAUSE IT ALLEVIATES YOU GUYS FROM HAVING TO WORRY ABOUT IT. BECAUSE WE'RE NOW FOCUSED ON IT. THIS IS SOMETHING THAT WE, IT'S IN OUR MUSCLE MEMORY. IT'S SOMETHING THAT WE, WE, WE, IT'S IN OUR DNA, THIS IS SOMETHING THAT WE WERE VERY PASSIONATE ABOUT, AND IT WOULD BE AN HONOR FOR US TO DO THIS ON YOUR BEHALF, TO SHARE OUR PASSION, IF THAT MAKES SENSE. NOW, IN ALL OF THIS, IN ALL OF THIS, THE MOST IMPORTANT THING IS THROUGH THIS PARTNERSHIP, THE CITY STAFF IS STILL MAINTAINED ALL OF THE JOBS, ALL OF THE BENEFITS ARE STILL KEPT IN PLACE. AS A MATTER OF FACT, WE HAVE, IT'S DESIGNED TO WHERE WE WILL REIMBURSE THE CITY FOR THE PAYROLL ON FROM THIS PROJECT. SO THEREFORE, YOU CAN SEE THE ALLEVIATION IS STARTING TO, STARTING TO COMMENCE. THERE'S A LOT OF THINGS, THERE'S A LOT OF PRESSURE THAT WE'LL ALLEVIATE FROM THIS PARTNERSHIP, IF THAT MAKES SENSE HERE. AND THEN MOST IMPORTANTLY, THE JOB SAFETY DUE TO OUR TRAINING AND CERTIFICATION, OKAY? THE JOB SAFETY DUE TO OUR TRAINING AND OUR CERTIFICATION THAT WE'LL PROVIDE FOR THEM, WE'LL MAKE SURE THAT THEY'RE UP TO PAR ELEVATED AND, YOU KNOW, UP TO STANDARD TO RUN THE JOB WITH NO ISSUES AT ALL. ALL OF THAT IS FUNDED BY EISG. NOW, NOW THAT WE HAVE AN UNDERSTANDING OF THE PARTNERSHIP AND WHAT OUR REAL INTENT HERE IS, LET'S KIND OF TALK ABOUT TODAY'S LANDSCAPE. WHERE ALL OF THE AREAS OF OPPORTUNITY ACTUALLY LIE. NUMBER ONE, THIS IS A PORT ARTHUR'S LANDFILL SITS IN A PRIME LOCATION. IT'S IN ONE OF THE MOST POWERFUL INDUSTRIAL CORRIDORS IN SOUTHEAST TEXAS, IF NOT THE NATION. IF YOU LOOK AT WHERE WE'RE STRATEG STRATEGICALLY PLACED, WE'RE SURROUNDED BY NOTHING BUT WASTE GENERATORS THAT THEIR ROUTES ARE LITERALLY DESIGNED TO FLOW INTO PORT ARTHUR, IF THAT MAKES SENSE. CURRENTLY, RIGHT NOW, WE'RE ONLY REALLY CAPTURING UP TO 10% OF THE MARKET, WHILE THE REST OF IT IS BYPASSING US TODAY AS WE SPEAK, THAT ISN'T THAT EQUATES TO AROUND $60 MILLION ANNUALLY THAT WE COULD BE CAPTURING RIGHT NOW, IF THAT MAKES SENSE. THE CHALLENGE IS NOT THE LOCATION, IT'S TRULY JUST THE INFRASTRUCTURE. THE ONLY THING, THE ONLY PIECE REMAINING IS THE MODERNIZATION OF THE INFRASTRUCTURE TO BE ABLE TO CAPTURE THIS NEW MARKET THAT I'M TALKING ABOUT THAT'S BYPASSING THIS AS WE SPEAK. THE THING IS, UM, WE ALSO NEED TO MAKE SURE THAT WE HAVE MARKETING EFFORTS. THE MARKETING EFFORTS ARE GOING TO, WE, LIKE I SAID BEFORE, THIS IS SOMETHING THAT WE'RE PASSIONATE ABOUT. OUR, WE KNOW WE HAVE THE SALES FORCE AND THE KNOW-HOW TO MAKE SURE WE ACCESS THE RIGHT TYPE OF MARKETS TO MAKE SURE WE BRING THAT WASTE BACK TO PORT ARTHUR'S LANDFILL. AND THEN MOST IMPORTANTLY, ROAD ACCESSIBILITY. WE WANNA MAKE SURE THAT THE ROADS ARE SUPER CLEAN, SUPER SMOOTH, SO THAT TRUCKS CAN GO IN AND OUT OF THERE WITHOUT ANY TYPE OF NAILS COMING OUT OF THERE, GOING ONTO THE ROAD AND MAKING SURE THAT WE HAVE THAT, THAT MUCH OF A FLOW WITHIN THE LANDFILL, WHICH ENABLES US TO CAPTURE THAT MUCH MORE WASTE. AND THEN LASTLY, NEED FOR, YOU KNOW, UPGRADED EQUIPMENT ON THE SITE. WE INTEND TO BRING ALL OF THE EQUIPMENT TO FACILITATE THE DEVELOPMENT OF THIS JOB AND SUSTAIN OPERATIONS OF THIS JOB. NOW, WHEN IT COMES TO THE LANDFILL, IT, WHEN IT COMES TO INDUSTRIAL WASTE, LEMME CORRECT MYSELF, IT'S REALLY, YOU CAN'T INSTALL THE INDUSTRIAL WASTE WITHOUT MAKING SURE THAT EVERYTHING IS RUNNING IN HARMONY. SO THEREFORE, WE CAN'T JUST EN OPTIMIZE ONE SECTION. WE HAVE TO EN WE'D HAVE TO ENABLE, WE'D HAVE TO OPTIMIZE THE WHOLE ENTIRE LANDFILL IN ORDER FOR THIS TO WORK. UM, THERE'S CERTAIN THINGS LIKE TWO MEG AUDITS OR DIFFERENT ENTITIES THAT ARE PLACED ON THESE SITES THAT TELL US IF, THAT LETS PEOPLE KNOW IF THIS SITE IS ABLE TO TAKE THE WASTE OR NOT. WE WANNA MAKE SURE THAT ALL OF THESE THINGS ARE AUDIT READY BEFORE [00:20:01] WE EVEN BEGIN, IF THAT MAKES SENSE. WE WANNA MAKE SURE THAT EVERYTHING IS RUNNING FLUID AND BRAND NEW. NOW, THE SITE, ADDITIONAL SITE UPGRADES THAT WILL BE INCLUDING WILL BE BOX WASHING, MAKING SURE THAT THE TRUCKS, WHEN THEY GET ON SITE, THEY'RE WASHED. AND THEN WHEN THEY GET ON THE ROAD, WE'RE PUTTING CLEANER TRUCKS ON THE ROAD AFTER THEY DUMP. WE WANNA PUT SOLIDIFICATION PITS TO MAKE SURE THAT THE TRASH, THERE'S NOT SO MUCH LIQUID GOING INTO THE INDUSTRIAL, YOU KNOW, YOU HAVE TO, YOU'D HAVE TO MIX SOME OF IT TO COMPACT IT AND MAKE SURE THAT IT'S NOT JUST A HUGE BOWL OF LIQUID SITTING IN OUR GROUNDS. RIGHT? WE WANT TO INCLUDE, WE WANT TO UPGRADE ALL OF THE SITE AESTHETICS, MAKE SURE THE ENTRYWAYS IN AND OUT ARE FLUID, NO TYPE OF TRAFFIC JAM, BECAUSE WE WANT TO TRY AND CAPTURE AS MUCH OF THAT WASTE AS WE CAN. RIGHT? EXACTLY. AND THEN WE'RE GONNA INTRODUCE ROLL OFFS THAT WILL MAKE SURE THAT ALL OF THE, ALL OF THE DELIVERIES ARE HAPPENING IN, IN A, IN A ORGANIZED FORMAT VERSUS TRUCKS JUST KIND OF EVERYWHERE AND KIND OF JUST CREATING THAT MUCH OF A TRAFFIC JAM. THEN OF COURSE, WE WANNA PUT IN EQUIPMENT MAINTENANCE SHOP, BECAUSE WE'RE GONNA BE BRINGING THIS EQUIPMENT. WE WANNA MAKE SURE THAT IT'S ON A ROUTINE BASED MAINTAINED THAT'S GOING TO EQUATE TO LOWER COST AND MAINTENANCE. IT'S GOING TO TAKE CARE OF OUR EQUIPMENT, LIKE MAKE IT LAST LONGER, AND WE'LL ALWAYS HAVE EQUIPMENT ON SITE THAT WORKS, MAKING SURE THE OPERATIONS ARE GOING GOOD. YEAH, WE WANT TO INTRODUCE A CITIZENS' CONVENIENCE CENTER. THIS IS WHERE YOU WILL HAVE CERTAIN AREAS ON THE LANDFILL WHERE THE RESIDENTS CAN COME IN AND DROP THEIR WASTE, YOU KNOW, CONVENIENTLY. AND IT'S OUT OF THE WAY OF THE STREETS OF PORT ARTHUR. IT KEEPS THE CITY, IT KEEPS THE STREETS CLEAN, AND IT GIVES THE RESIDENTS SOMEWHERE TO GO TO BE ABLE TO DUMP THEIR WASTE. AND THAT'S NO CHARGE TO THE CITIZENS WHATSOEVER. OKAY? ALL IN ALL, WE WANT TO ENHANCE THE SAFETY OF THE SITE. WE WANT TO UPGRADE IT TO WHERE WHEN YOU'RE DRIVING BY ON 73 AND YOU LOOK, WHETHER YOU'RE GOING INTO PORT ARTHUR AND YOU LOOK TO YOUR LEFT, OR YOU'RE COMING OUT AND YOU LOOK TO YOUR RIGHT, WE WANNA MAKE SURE THAT WHEN YOU DO LOOK AT THE LANDFILL, IT LOOKS LIKE A PLACE OF MAGNIFICENCE. IT LOOKS LIKE SOMEWHERE THAT PORT ARTHUR IS PROUD TO HAVE. IT LOOKS LIKE A REAL TRUE ASSET. NOW, WITH ALL OF THESE SIGHTING UPGRADES I JUST TALKED ABOUT NOW IN THE TIMELINE THAT WE HAVE DESIGNED TO GET THIS DONE, IT'S BROKEN DOWN INTO THREE PHASES WITH FULL OPERATIONAL CAPACITY BEING ACHIEVED WITHIN THE SECOND PHASE. SO BEFORE WE EVEN GET THROUGH THE THREE PHASES, WE'LL ALREADY HAVE ACHIEVED FULL OPERATIONAL CAPACITY JUST FOR THE SAKE OF TIME TO MAKE SURE THAT PORT ARTHUR WASTES NO TIME COLLECTING THE CAPTURE THAT IT COLLECTING THE, UH, REVENUE THAT IT DESERVES. WE HAVE PHASE ONE MONTHS ONE TO 12. THAT'S WHEN WE'LL START THE ROADWAY UPGRADES, MAKING SURE THAT THE ACTUAL GROUNDS ARE SMOOTH. THAT'S A GOOD STARTING POINT FOR US. THE NEXT PHASE, THE NEXT THING IN THAT PHASE WILL BE THE PERMITTING, WHICH IS ABOUT FROM MONTHS EIGHT TO 12. AND IF WE GET THE, IF SHALL EVERYTHING GO WELL, WHICH I BELIEVE WE CAN ACTUALLY HAVE THE PERMIT PROCESS STARTED AS SOON AS DECEMBER WITH CONSTRUCTION TO FOLLOW IN FEBRUARY. THEN OF COURSE, WHILE THE THIRD THING IN THAT PHASE IS OPTIMIZING THE MSW, THAT WOULD ENTAIL WITH THE ROADWAYS, THE ENTRY AND ALL OF THE OTHER THINGS, UPDATING THE SCALE HOUSE, ALL OF THE OTHER THINGS THAT WE HAVE PUT IN PLACE, IT WILL ENABLE, EXCUSE ME, IT WILL ENABLE US TO START COLLECTING MORE MSW WASTE BEFORE WE EVEN START THE CONSTRUCTION OF THE INDUSTRIAL. SO WITH THAT BEING SAID, WE'RE ALREADY FIGURING OUT A WAY FOR THE LANDFILL TO PRODUCE MORE BEFORE WE EVEN FINISH THE CONSTRUCTION OF THE INDUSTRIAL SIDE. PHASE TWO, WE WILL RUN INTO THE CONSTRUCTION OF THE INDUSTRIAL CELLS. THAT WILL NOW ENTAIL THE INSTALLING OF THE SOLIDIFICATION SYSTEMS, THE BOX WASHING, BECAUSE NOW THAT WE'VE STARTED THE CONSTRUCTION OF THE INDUSTRIAL, WE'RE GOING TO, WE'RE, LIKE I SAID BEFORE, WE'RE GONNA BE USING MSW INDUSTRIAL SOMETIMES TO COMMINGLE, TO SOLIDIFY THE WASTE THAT WILL ENABLE US TO START PUTTING THE SOLIDIFICATION PITS AND THE BOX WASHING STATIONS IN THERE. THEN NUMBER THREE, WE'LL START BRINGING COM. WE'LL START COMMISSIONING THE NEW EQUIPMENT ON SITE IN PHASE TWO. THAT WILL NOW BRING US TO FULL OPERATIONAL CAPACITY. PHASE THREE, WE'LL NOW START PUTTING IN OUR MARKETING EFFORTS, START REACHING OUT TO THE WASTE GENERATORS, LETTING THEM KNOW, HEY, WE ARE THE NEW GUYS IN TOWN. WE ARE BETTER FOR YOU GUYS. COME ON IN. OUR DOORS ARE OPEN. AFTER THAT, WE'LL EXPAND THE CLIENTELE BECAUSE NOW THAT WE'VE PLANTED THE SEED, IT'S ONLY, IT'S ONLY GONNA BE NATURAL. IT'S GONNA SELL ITSELF. PEOPLE ARE GOING TO NATURALLY START COMING HERE DUE TO WHERE WE ARE STRATEG DUE TO WHERE WE'RE POSITIONED RIGHT NOW. AND THEN BY THAT TIME, FULL OPERATIONAL CAPACITY MONEY FOR PORT ARTHUR. EVERYONE IS HAPPY. THE CITIZENS OF PORT ARTHUR IS HAPPY. NOW, WHEN I SAY POSITIONED FOR GROWTH, LIKE I MENTIONED EARLIER, IF YOU SEE OUR MAP RIGHT HERE [00:25:01] TOWARDS THE BOTTOM IN JEFFERSON COUNTY WHERE WE ARE, YOU SEE HOW WE'RE LITERALLY RIGHT ALONG THE COAST AND YOU SEE ALL OF THE MAJOR GENERATORS THAT ARE COMING IN RIGHT NOW, LITERALLY WITH OUR MARKETING SALES FORCE COMBINED WITH THE POSITION, IT ONLY EQUATES TO A SUCCESSFUL OPERATION THAT THAT INCLUDES SHORTER HAUL TIMES, REDUCED CLIENT COSTS, AND THAT WILL MAKE US A REGIONAL LEADER IN THIS INDUSTRY. LIKE I SAID BEFORE, THIS IS DEFINITELY A GLOBAL CASE STUDY WITH THE 50 MAJOR GENERATORS ONLINE NOW, AND THE ONES WHO COME IN THE FUTURE. IT ONLY PUTS US INTO A MARKET THAT IS, THAT IS UNLIMITED WITH, WITH MARKET CAPTURE. HERE ARE SOME OF THE FACILITIES THAT ARE ROLLING OUT RIGHT NOW, SOME OF THE NEW THINGS THAT ARE GOING ON. SO AS WE KNOW MOTIVA, THEY'RE GETTING READY TO INCREASE THEIR THROUGHPUT, SO THEY'RE ADDING MORE CONSTRUCTION. SAME THING WITH GOLDEN PASS, CHEVRON, PHILLIPS, PORT ARTHUR, LNG, AND ENTERGY. BETWEEN THOSE FIVE ALONE, WE'RE LOOKING AT HUNDREDS OF MILLION DOLLARS IN ADDITIONAL MARKET CAPTURE, IF THAT MAKES SENSE. SO THIS AREA IS, IS IS THE PERFECT POSITION WHERE WE ARE, WHERE THE LANDFILL IS, IS THE PERFECT POSITION TO CAPTURE ALL OF THIS ACTIVITY THAT'S COMING ONLINE NOW. AND THAT'S ALREADY ONLINE AS WE SPEAK NOW, I WOULD LIKE TO, UM, GO MORE INTO DETAIL ABOUT THE FINANCIAL UPSIDE. UM, SO I WOULD LIKE TO CALL UP MR. HAROLD AND MR. DERRICK TO PLEASE COME IN AND ASSIST ME. GOOD MORNING, MAYOR. COUNCIL, EVERYONE. UH, MY NAME IS DERRICK MCGRIFF. I AM, MY ADDRESS IS 2160 FOREST STREET, BEAUMONT, TEXAS. AND, UH, THIS IS HAROLD ER. HI, UH, GOOD MORNING, MADAM MAYOR. UH, COUNCIL MEMBERS, UH, THANKS FOR TAKING THE TIME. MY NAME'S HAROLD BARBER. I'M A REGISTERED PROFESSIONAL ENGINEER IN TEXAS AND LOUISIANA. 37 YEARS OF EXPERIENCE IN SOLID WASTE AND NON-HAZARDOUS WASTE DISPOSAL. AND, UH, HAVE WORKED IN THAT, UH, INDUSTRY OR AS A, UM, ENGINEERING CONSULTANT TO IT FOR THE LAST 37 YEARS. OH, ADDRESS IS ONE 11 C CLARA COURT, SUGARLAND, TEXAS. THANK YOU. OKAY. SO MYSELF AND HARRY ARE GOING TO, YOU KNOW, KIND OF GET INTO THE NUMBERS PART OF IT. YOU KNOW, PETER, UM, MADE A GREAT PRESENTATION IN TERMS OF THE UPGRADING OPTIMIZATION OF THE LANDFILL, BUT I'M SURE WE ALL WANT TO KNOW WHAT DOES THIS BENEFIT THE CITY OF PORT ARTHUR. UM, AND I LIKE TO COIN THIS, UH, PARTICULAR SECTION OF THE PRESENTATION. THIS IS THE JERRY MCGUIRE PART OF THE PRESENTATION. SHOW ME THE MONEY. SO WHAT WE HAVE HERE, UM, IF YOU CAN GO TO THAT NEXT SLIDE, PETER. SO WE'RE GONNA SHOW PORT ARTHUR THE MONEY. ABSOLUTELY. WHAT WE'RE GONNA DO, WE'RE GONNA INVEST 20 TO $25 MILLION OF OUR OWN CAPITAL AND OUR OWN MONEY INTO EVERYTHING THAT YOU'VE HEARD TODAY. UM, SOME OF THE MAIN THINGS THAT YOU, WE TALKED ABOUT IS SOME DIFFERENT ADDED SERVICES AND SOME DIFFERENT ADDED, UH, WASTE STREAMS THAT WE'RE GONNA BE ABLE TO CAPTURE BECAUSE THESE WASTE STREAMS ARE ALREADY HERE. UM, OF COURSE WE KNOW THAT WE'RE IN A INDUSTRIAL CORRIDOR IN, UP IN, IN THE TEXAS AREA. MATTER OF FACT, THE, THE LARGEST INDUSTRIAL CORRIDOR IN THE ONE OF THE LARGEST CONDU INDUSTRIAL CORRIDORS IN THE COUNTRY. AND WITH THAT, THERE ARE A LOT OF DIFFERENT WASTE STREAMS THAT THE CITY IS NOT CAPTURING YET. AND SO WE WANT TO TALK ABOUT A LITTLE BIT ABOUT SOME OF THOSE WASTE STREAMS. ONE OF THE WASTE STREAMS IS CLASS ONE AND CLASS TWO WASTE. NOW, WHEN WE'RE TALKING ABOUT THESE DIFFERENT TYPES OF WASTE, ALL THIS WASTE AND HAROLD GET A LITTLE BIT MORE TO THIS IN A LITTLE BIT, BUT EVERY TYPE OF WASTE, THE WASTE THAT WE'RE TALKING ABOUT IS NONHAZARDOUS. THIS, THIS IS NOT HAZARDOUS WASTE. IT IS NOT HAZARDOUS TO THE CITY, UH, CITY'S, UH, CITIZENS OR EMPLOYEES. SO EVERY WASTE STREAM THAT WE'RE GONNA BE TALKING ABOUT IS NONHAZARDOUS WASTE. THE FIRST WASTE, UM, THAT WE'RE GONNA BE ABLE TO BRING, UM, INTO THE LANDFILL ONCE THE LANDFILL IS 100% FULLY OPERATIONAL, IS THE CLASS ONE NON HAS CLASS TWO, NONE HAS, AND WE'RE ALSO GONNA BE ABLE TO OPTIMIZE THE, UM, MUNICIPAL SOLID WASTE. THE OTHER WASTE, UM, STREAMS THAT WE'LL BE ABLE TO BENEFIT FROM. IT'S GONNA BE THE WASTEWATER AND BIO SLUDGE. AND WHAT THIS IS, THIS IS BASICALLY A LOT OF THE BIO SLUDGE THAT COMES FROM THE REFINERIES. [00:30:01] THESE, UH, REFINERIES ARE CURRENTLY TAKEN THIS WASTE PROBABLY 30, 40 MILES UP THE ROAD WHEN THEY COULD LITERALLY BE TAKING IT RIGHT AROUND THE CORNER. ANOTHER THING, SOME OTHER, UH, REVENUE STREAMS THAT WE'LL BE ADDING, IT'S LIKE, IT'S, IT'S GONNA BE LIKE TANK WASHING. SO EVERY TIME, UM, ONE OF THESE TANKERS OR ONE OF THESE, UH, BOXES THAT HAVE ANY KIND OF, UH, BIO SLUDGE, ANYTHING LIKE THAT, THEY HAVE TO BE WASHED OUT BEFORE THEY CAN BE PUT BACK ON THE ROAD. SO WE'RE GONNA HAVE A WASH BAY AND THINGS OF THAT NATURE, RIGHT. BUILT THAT WE'LL BE BUILDING RIGHT ON THE, UH, RIGHT ON THE SITE. OTHER THINGS THAT WE'RE GONNA BE DOING, ALSO WASTEWATER. UM, SO SOME OF THE, THE REFINERIES KIND OF LIKE A INAMA IS ONE OF THEM. THEY, THEY TAKE, UH, YOU KNOW, MOST OF THEIR WASTE TO OTHER SITES BECAUSE, UH, PORT ARTHUR DOESN'T YET HAVE A, UM, THE CAPABILITY OF, OF TAKING WASTEWATER. AND ONE OF THE THINGS THAT WE'RE GONNA BE DOING WITH THIS $25 MILLION INVESTMENT IS BILLING A WHAT WE CALL A SOLIDIFICATION, UH, PIT AND FACILITY. SO JUST AS FAR AS THE WHAT THAT, WHAT THAT MONEY, WHAT THAT NUMBER, THOSE NUMBERS LOOK LIKE AS YOU CAN SEE. AND NEXT SLIDE. WELL, NEXT ONE WHEN OKAY. THE FINANCIAL NUMBERS. OKAY. WELL, ON YOUR, IN YOUR PACKET, YOU HAVE A FINANCIAL BREAKDOWN. AND THAT FINANCIAL BREAKDOWN ACTUALLY, YOU KNOW, ILLUSTRATES WHAT THE, UH, WHAT THE NUMBERS LOOK LIKE. AND WHEN I SAY WE'RE LOOKING AT 10 X THE LANDFILL'S REVENUE, WE UNDERSTAND THAT AFTER A LOT OF RESEARCH AND A LOT OF DIGGING INTO THE, THE SOLID WASTE FUND, WE SAW THAT, YOU KNOW, THE SOLID WASTE FUND DOES ANYWHERE FROM 10 TO $12 MILLION A YEAR IN REVENUE. OVER THE LAST TWO OR THREE YEARS. THERE HAS BEEN, UH, SOME PROFIT, UM, DUE TO SOME DIFFERENT EVENTS THAT HAVE BEEN GOING ON IN THE CITY, BUT WE KNOW THAT'S NOT SUSTAINABLE. SO WHAT WE'RE GONNA BE DOING WHEN WE SAY 10 X OVER THE NEXT 10 YEARS, WE CAN ANNUALLY IN FULL OPERATION GET THESE, GET THIS LANDFILL UP TO OVER A HUNDRED MILLION DOLLARS WORTH OF REVENUE. SO WHAT DOES THAT MEAN FOR THE CITY OF PORT ARTHUR? THAT MEANS THAT THE CITY WOULD BE GAINING A ROYALTY FROM FIVE TO 10% OF THAT EVERY GROSS DOLLAR THAT COMES OUT OF THE LANDFILL. AND I'LL LET HAROLD KIND OF PICK UP FROM HERE. THANK YOU. SO TO DEREK'S POINT, UH, THIS WOULD, UH, THIS WOULD NOT BE A CAPITAL EXPENDITURE ON THE PART OF THE CITY. IT WOULDN'T BE AN OPERATIONAL EXPENDITURE ON THE PART OF THE CITY. THIS WOULD BE ASSUMED BY, UH, EISG AS THE OPERATOR OF THE LANDFILL. UM, ALL OF THIS WOULD BE DONE IN ACCORDANCE WITH A PROPOSED LIMITED SCOPE PERMIT, AMENDMENT TO THE EXISTING PERMIT FOR THE LANDFILL. SO EVERY LANDFILL HAS ONE PERMIT ASSOCIATED WITH IT, AND THAT PERMIT DEFINES WHAT THE LANDFILL IS AND THE WASTE THAT IT CAN TAKE. AND SO, UH, MY, UH, ROLE IN THIS, UH, UH, PROPOSAL, IT WOULD BE TO BE THE ENGINEER TO PREPARE THAT LIMITED SCOPE PERMIT AMENDMENT IN ORDER TO IMPROVE, UH, THE PORT ARTHUR LANDFILL. AND THEN, UH, GAIN THE PROPER PERMITTING OUT OF TCEQ IN ORDER TO, UH, UH, DESIGN AND EVENTUALLY BUILD, UH, THE IMPROVEMENTS THAT WE'RE TALKING ABOUT, THE BOX WASHING FACILITIES, UH, A CELL THAT WOULD BE ABLE TO ACCEPT CLASS ONE NON-HAZARDOUS WASTE, UM, THE ABILITY TO, UH, UH, PROVIDE FOR ADDITIONAL TRAFFIC, BETTER TRAFFIC FLOW ACROSS THE LANDFILL, WHICH WOULD OBVIOUSLY BE ASSOCIATED WITH INCREASED WASTE STREAMS THAT WOULD COME TO THE SITE. THE WHOLE GOAL IN THIS, UH, IN THE, THE WORK THAT WE'RE PROPOSING WOULD BE TO IMPROVE THE LANDFILL SO THAT IT WOULD BE AUDIT READY FOR ANY INDUSTRIAL CUSTOMERS HERE IN THIS INDUSTRIAL CORRIDOR. SO THAT WHEN, JUST AS AN EXAMPLE, MOTIVA OR TOTAL, OR VALERO OR INAMA OR ANY OF THE FUTURE LNG FACILITIES THAT ARE ALL CURRENTLY BEING PERMITTED AND NOW BEING CONSTRUCTED, THAT THEY WOULD [00:35:01] BE ABLE TO SEND THEIR ENVIRONMENTAL MANAGERS INTO THAT FACILITY, INTO YOUR FACILITY, UH, AND BE ABLE TO PERFORM AN AUDIT, WHETHER IT BE A TWO MAG AUDIT OR AN ENVIRONMENTAL AUDIT OF, UH, A THIRD PARTY OR SOMETHING LIKE THIS. AND THE LANDFILL WOULD BE ABLE TO PASS WHATEVER THEIR AUDIT PROCEDURES ARE IN THEIR AUDIT CRITERIA. TH THIS IS DONE ON A REGULAR BASIS, UH, AND IT'S, UH, PERFORMED FOR CERTAINLY ALL THE MAJOR WASTE DISPOSAL FACILITIES, UH, IN THE STATE THAT ARE TAKING NON-HAZARDOUS INDUSTRIAL WASTE. UM, AFTER THAT, UH, WE WOULD THEN PROCEED TO BE, UH, A FACILITY THAT WOULD BE, UH, THAT WOULD HAVE AN ENVIRONMENTAL COMPLIANCE RECORD THAT WOULD CERTAINLY BE, UH, UH, ENVIABLE AND SOMETHING THAT WOULD BE ACHIEVABLE. AND THEN AT THE SAME TIME, UH, IT'S SOMETHING THAT, UH, WE'RE HOPING, UH, WOULD BE ABLE TO DRAW IN ADDITIONAL INDUSTRIAL CLIENTS AFTER THAT. ANY QUESTIONS? UH, YEAH, I THINK WE'RE GONNA, OKAY. A FEW. UM, WE HAVE COUNCIL MEMBER LEWIS. YES. SECOND, MY QUESTION IS, AT ANY POINT IN TIME ARE Y'ALL PLANNING TO HANDLE MILITARY WASTE? MILITARY, MILITARY PLANNING? YES. HAZARDS OR NON HAZARDS? I, I DON'T THINK MILITARY WASTE, TO BE HONEST WITH YOU, COUNCIL MEMBER LEWIS, THE, UM, UNLESS IT'S A RARE, UH, EXCEPTION. LIKE FOR EXAMPLE, IF FOR SOME REASON THE RED RIVER ARMORY IN, UH, NORTHEAST TEXAS HAD, UH, A NON-HAZARDOUS LOAD THAT THEY COULDN'T FIND, UH, A DISPOSAL FACILITY FOR, UH, THEN, UH, WE WOULD CERTAINLY PROFILE IT AND PERFORM AN ANALYTICAL ON IT. UH, BUT THERE'S, THERE'S SO MANY OTHER FACILITIES, UH, IN THAT PART OF TEXAS THAT, UH, I THINK FOR THE MOST PART THEY'D BE ABLE TO FIND A, A DISPOSAL FACILITY CLOSER TO THEM. RIGHT. MY REASON FOR THAT IS, UH, MILITARY WASTE WAS BROUGHT IN HERE AT NIGHT AND THEY BROUGHT IT AT NIGHT SIMPLY BECAUSE OF THE LOW TRAFFIC. OKAY. YEAH. AND THE CITIZENS LOOKING AT IT AND THE, AND CERTAIN, UH, ORGANIZATION PROTESTS, THEY PUT A SPIN ON IT. WHY AT NIGHT? I MEAN, YOU GOT TO AVOID THE HEAVY TRAFFIC AND STUFF. SO IT CREATED A QUITE A BIT OF RUCKUS, YOU KNOW, IT CREATED A, A BIG DEMONSTRATION. YES, SIR. WELL, I, I CAN UNDERSTAND WHY IT WOULD CREATE A STIR WITH, I THINK MOST FOLKS, UM, WOULD I, UH, IT, I I DON'T ARGUE WITH THE FACT OF HAVING A DISPOSAL FACILITY THAT'S PERMITTED TO ABLE TO TAKE WASTE 24 7. UH, MY PERSONAL FEELING ON IT IS THAT OURS SHOULD BE LIMITED UNLESS THERE IS A, UH, SPECIAL EVENT JOB, A LARGE SPECIAL EVENT JOB. LIKE SAY, UH, UH, THEY'RE DOING A LARGE TURNAROUND AT ONE OF THE LOCAL, UH, PLANTS HERE. AND THEN MAYBE IF YOU'RE ALREADY PERMITTED FOR 24 7, THEN YOU, YOU CAN OPERATE THAT WAY. UH, THE, THE BIGGEST PROBLEMS I SEE WITH, UH, A FACILITY THAT'S, UH, PERMITTED FOR 24 7 IS YOU GET INTO NIGHTTIME ACTIVITIES AND THEN YOU RUN INTO A SAFETY SITUATION. 'CAUSE YOU'VE GOTTA BRING IN LIGHT PLANTS AND, AND THAT SORT OF THING. AND YOU, YOU'VE GOT TRUCKS MOVING AROUND. PEOPLE ARE, YOU KNOW, UH, NOT REALLY AT THEIR BEST AT ONE OR TWO O'CLOCK IN THE MORNING. SO, UH, I'D, I'D LIMIT THAT. UM, YEAH, I'D WANT, I'D WANT THAT LIMITED. YES. YEAH, ABSOLUTELY. YEAH. RIGHT. YEAH. SO PROBABLY SOMETHING MORE LIKE A, LIKE A 12 HOUR OPERATING WINDOW OR SOMETHING LIKE THAT DURING THE DAY. OKAY. COUNCIL MEMBER DOUCETTE. YES. THANK YOU. I HAVE A COUPLE QUESTIONS. THE FIRST ONE THAT WHEN YOU, THIS WHOLE THING IS TARGETED AROUND INDUSTRIAL WASTE WITH ALL THESE INDUSTRIES AND REFINERIES AROUND HERE, THAT'S NOT EVEN A QUESTION OF IT BEING A GOLD MINE. THEY'RE NOT GONNA PAY SOMEBODY TO HAUL IT OFF ALL DOWN THE ROAD IF IT COULD HAUL IT RIGHT HERE. OKAY. SO THAT'S A NO BRAINER. UH, THE FIRST QUESTION I HAVE THOUGH IS LONG TERM, YOU KNOW, WE TALK ABOUT PUTTING IN ROWS AND MAKING IT A TAJ MA HALL LANDFILL, BUT WHAT'S GONNA BE THE LIFE, THE LIFETIME OF A SALE? AND EVENTUALLY WHAT'S GONNA HAPPEN IF YOU, [00:40:01] AFTER I KNOW WE GOT EXTRA PROPERTY OUT THERE FOR NEVER, WE GET THROUGH WITHOUT USE. 'CAUSE IT'S ONLY GONNA HAVE A CERTAIN LIFE LIFESPAN. YOU TALKING ABOUT INVESTING ALL THIS MONEY. SO WHEN WE REACH THE LIFESPAN, WHAT ARE WE GOING TO DO AFTER THAT? YEAH. WHERE, WHERE DOES THE WASTE FOR PORT ARTHUR GO IN YEAR 30 OR YEAR 40 OR SOMETHING LIKE THIS? OKAY, THAT'S WHAT I'M TALKING ABOUT. YEAH, THAT'S CORRECT. NO, IT'S A LEGITIMATE CONCERN. YOU ARE, RIGHT? YEAH. UH, SO THE WAY THAT I WOULD ENGINEER IT AND DESIGN IT WOULD BE TO CERTAINLY MAXIMIZE THE HEIGHT. UH, JUST LOOKING AT THE, THE BASE, THE FOOTPRINT OF THE LANDFILL, UH, IT, IT CERTAINLY CAN GO A LOT HIGHER THAN IT'S CURRENTLY DESIGNED. UH, BUT I WOULD ALSO SAY THAT ANY EXISTING, UH, SUBTITLE D CELL, SO THE LANDFILL WAS, I BELIEVE, PERMITTED IN 1986. AND THEN, UH, SUBTITLE D, WHICH IS US CPA'S, PART 2 58, THAT IMPROVED LANDFILL DESIGN AND OPERATION IN 1993. UH, THE, THE LANDFILL THEN HAD TO MODIFY ITS PERMIT UNDER TCEQ IN ORDER TO CONTINUE OPERATION. SO ANYTHING THAT WAS RECEIVED PRIOR TO 1993 AND 1986, THAT WOULD THEN HAVE AN OVER LINER PLACED ON TOP OF IT TO ALLOW FOR AN ADDITIONAL HEIGHT INCREASE. UM, SO THAT'S THE WAY THAT I WOULD ENGINEER IT. YES, SIR. YES. ALSO TAKE CONSIDERATION OF PROPERTY. YOU'RE NOT USING ALL OF THE PROPERTY WE OWN OUT THERE, RIGHT? THIS IS, THIS IS THIS PROJECT USING ALL OF THE PROPERTY WE OWN. SO I DON'T KNOW IF ALL THE PROPERTY YOU OWN IS INCLUDED UNDER THE EXISTING PERMIT. RIGHT. BUT WHAT I WOULD SAY IS THAT THE, THE AREA THAT'S DEFINED UNDER THE EXISTING PERMIT IS THE AREA THAT WE WOULD, UH, ASSUME OPERATION OF. WELL, IT'D BE GOOD IF YOU CONSIDER WHAT WE OWN. THAT COULD BE FOR FUTURE EXPANSIONS. LIKE WE TALK ABOUT THE LIFE OF IT. YES, SIR. THAT'S A GOOD POINT. 'CAUSE IF YOU, IF YOU INVEST IN THIS MUCH AND WE GO TO THAT WAY CONTRACTING IT, THEN WE HAVE TO HAVE LONGEVITY. YOU KNOW, I MEAN, WE CAN'T GO INTO SOMETHING AND THEN HAVE TO GO BACK TO SQUARE ONE IN 20, 30 YEARS. YEAH, THAT'S A GOOD POINT. MR. DUETTE. THE, I WOULD SAY, JUST TO RESPOND, THE, UH, IT'S A, IT'S A GREAT POINT. IT'S, UH, WITHIN YOUR COUNCIL OF GOVERNMENTS, UH, THE LANDFILL IS, UH, THE DETAILS OF THE LANDFILL ARE LISTED, YEARS OF LIFE AND THAT SORT OF THING. TCEQ ALSO HAS IT IN THEIR ANNUAL REPORTS. UH, BUT TO YOUR POINT, AND IT'S A GOOD ONE THAT, THAT ADDITIONAL PLANNING NEEDS TO TAKE PLACE. RIGHT. I THINK THE, THE GOOD NEWS IS THAT THE LANDFILL, WHEN IT WAS CITED, IT WAS CERTAINLY CITED IN A VERY GOOD LOCATION AND A LOCATION WHERE THERE IS EXISTING PROPERTY ADJACENT TO IT, THAT IF NEEDED TO BE EXPANDED, IT COULD EXPAND THERE. I JUST DON'T KNOW WHO THE OWNERS ARE. WELL, WELL, UH, WE OWN SOME OF IT. I KNOW WE, WE OWN SOME OF IT. THAT'S WHY. YES, SIR. YOU KNOW, WE NEED TO TAKE A LOOK AT THAT. 'CAUSE THE CITY NEED TO MAKE SURE THAT WE ALWAYS RESERVE IT FOR FUTURE EXPANSION IF NEEDED. IF YOU'RE GOING TO GO THIS ROUTE. UH, YES SIR. AND THE LAST QUESTION, YOU KNOW, WE DONE MONEY, BOY MONEY SOUND GOOD. YOU TALK TO ALL THESE MILLIONS AND MILLIONS. MILLIONS. BUT THE ONLY THING THAT CAUGHT MY ATTENTION WAS, UH, 5% ON $1 . 5% ON $1. YOU KNOW, SO 5% ON $1 IS WHATEVER YOU ARE MAKING, RIGHT? SO IF YOU AIN'T MAKING NOTHING, WE AIN'T MAKING NOTHING. WELL, WELL NO ACTUALLY, UM, IT'S 5% ON THE GROSS. SO IT'S BEFORE THE BOTTOM LINE. SO YOU GUYS ARE GONNA BE GETTING 5% ROYALTY ON THE TOP LINE MONEY. UM, FOR INSTANCE, UM, WITH THE LANDFILL, UM, UH, IN THE FIRST YEAR OF OPERATION, I THINK, UM, WE WERE LOOKING AT ABOUT $41 MILLION IN REVENUE THAT'S IN FULL OPERATION THE FIRST YEAR. NOT THE FIRST YEAR WE START, BUT THE FIRST YEAR FULL OPERATION. RIGHT. WE'RE LOOKING AT ABOUT $41 MILLION. SO THE CITY WILL BE LOOKING AT GETTING ABOUT A $2 MILLION CHECK. NOW LEMME TELL YOU WHAT THAT LOOKS LIKE. WHAT THAT LOOKS LIKE IS YOU GETTING A $2 MILLION CHECK AND WE ARE STILL PLAYING PAYING YOUR EMPLOYEES, WE'RE PAYING YOUR EMPLOYEES AS WELL. YOU, YOU KNOW WHAT MM-HMM. WHEN YOU, WHEN YOU TAKE UP THE FACT THAT YOU'RE GOING TO CONTRACT IT OUT, YOU KNOW, AND YOU TAKE [00:45:01] RESPONSIBILITY OF EMPLOYEES SALARIES AND BENEFITS AND ALL THAT. I UNDERSTAND ALL THAT. MM-HMM . CONTRACTING. OKAY. THAT'S LIKE I SAID THE FIRST TIME YOU ALL SPOKE, THE BOTTOM LINE IS WHAT ARE WE GONNA MAKE AT THE END OF EACH YEAR? MM-HMM . BECAUSE THAT'S GOING TO BE WHAT WE GOING TO LOOK FOR FOR MAINTENANCE AND OPERATING FUNDS AND REVENUE. SO OUR LANDFILL'S SUPPOSED TO BE A REVENUE MAKING THING. SO WE'RE GONNA GO THIS ROUTE. WE HAVE TO KNOW WHAT ARE WE LOOKING AT IN TERMS OF MONEY THIS CITY IS GOING TO GET AT THE END OF THE YEAR. YES. YOU KNOW, WHEN YOU START TALKING ABOUT EMPLOYEES AND BENEFIT AND EQUIPMENT AND ALL THAT, AND MAN, THAT'S A HEADACHE FOR A CITY. MM-HMM . OKAY. SO IF YOU WANT THE HEADACHE, FINE. MM-HMM . YOU KNOW, I MEAN, YOU KNOW, I GIVE YOU SOME ASPIRINS OR TYLENOL OR SOMETHING , BUT AT THE END OF THE DAY, AT THE END OF THE DAY, WE TALKING ABOUT WHAT WE GOING TO RECEIVE MM-HMM . AS REVENUE FOR MAINTENANCE AND OPERATING TO OUR CITY. YEAH. SO THAT'S THE BOTTOM LINE. AND THAT'S THE NUMBER THAT WE NEED TO, YOU NEED TO MAKE SURE THAT YOU GOT SOME NUMBERS THAT YOU GOT, YOU GAVE ME A GOOD NUMBER WHEN YOU SAID 2000001ST YEAR. MM-HMM . OKAY. YOU KNOW, BECAUSE, UH, ACTUALLY I UNDERSTAND THE MAGNITUDE OF WHAT YOU'RE TALKING ABOUT WHEN YOU START TALKING ABOUT ACCEPTING, UH OH WASTE, INDUSTRIAL WASTE. MM-HMM . LEMME TELL YOU, I KNOW THAT INDUSTRIAL WASTE, I MEAN YOU TALKING ABOUT LETTING CITIZENS, UH, DUMP FREE. YEAH. YOU CAN AFFORD TO DO THAT. 'CAUSE WHAT YOU'RE GONNA BE GETTING FOR INDUSTRIAL WASTE, I MEAN THAT'S WHERE THE MONEY'S GONNA COME FROM. WE'VE BEEN MISSING IT OVER ALL THESE YEARS. SO I UNDERSTAND ALL THAT, BUT AT THE BOTTOM LINE, WE GONNA HAVE TO BE ABLE TO UNDERSTAND WE GOING TO HAVE EMPLOYEES AND BENEFITS THAT'S GONNA GO AND TRANSITION MM-HMM . TO YOU. AND WE'RE NOT CONCERNED WITH THAT. WHEN YOU SAY YOU'RE GONNA ENSURE THAT THAT TRANSITION THEY HAVE WHAT THEY HAD HERE. YEAH. YOU KNOW, AND THAT, AND, AND I UNDERSTAND HOW THOSE THINGS ARE DONE IN THE GREEK IN CONTRACT. SO I'M NOT CONCERNED ABOUT, A LOT OF PEOPLE SAY, WELL, PEOPLE GONNA LOSE THEIR JOB. NO, I KNOW HOW THAT'S DONE. MM-HMM . TO COVER NOT ONLY YOU TAKING THEM BUT RETAINING THEM. OKAY. BUT THE, THE THING IS OUR MONEY THAT WE'RE GONNA MAKE, WE HAVE TO HAVE A CLEAR PICTURE OF THAT. YEAH. YOU KNOW, WE HAVE TO KNOW THAT IF IT'S ANY RISK, YOU GOT THE RISK. MM-HMM . WE DON'T WANT NO RISK. RIGHT? NO. NO. MM-HMM . YOU WANT THE RISK. YEAH. YOU KNOW, IF YOU SAYING YOU GONNA SPEND 25, IF IT COSTS 40, THEN HEY, THAT'S 40 ON YOU. YEAH. BUT OUR, OUR EMPLOYEES GONNA HAVE A JOB, THEY'RE GONNA HAVE THEIR BENEFITS, IT'S GOING TO CONTINUE AND WE GONNA GET X AMOUNT OF MONEY WE COULD COUNT ON EVERY X AMOUNT OF MONEY THE FIRST YEAR. MM-HMM . FIRST YEAR IS CRITICAL BECAUSE I KNOW DEFINITELY THAT ONCE YOU GET CLIENTS, YOU KNOW, YOU MIGHT HAVE PEOPLE COMING FROM BAYTOWN BRINGING IT HERE BECAUSE WE GET SOLD. YEAH, I KNOW THAT'S GONNA ONLY GO UP. I MEAN, WHAT YOU PRESENT IS, IS NOT A ROCKET SCIENCE TYPE THING. MM-HMM . IT'S JUST UNDERSTANDING WHAT TAKES PLACE IN THE INDUSTRIAL CITY. ALL THESE REFINERIES IS A GOLD MINE. MM-HMM . YOU KNOW, I DON'T KNOW WHY NOBODY HAVEN'T THOUGHT ABOUT TRYING TO CAPTURE THEIR WASTE UP UNTIL NOW. EVEN IF YOU DIDN'T HAVE A LANDFILL CAPTURE THAT WASTE, IT'S GONNA BE A GOLD MINE. MM-HMM . YOU KNOW. SO, UH, THAT'S ALL I NEED TO KNOW BEFORE I WILL BE, UH, IN LINE WITH THIS. OKAY. OUR EMPLOYEES ARE GOING TO BE PROTECTED AND THE TRANSFER AND WE HAVE A DEFINITE AMOUNT OF MONEY WE GOING TO GET STARTING THE FIRST YEAR. WE GONNA HAVE X AMOUNT OF DOLLARS. I DON'T CARE IF YOU DON'T MAKE NOTHING . OKAY. I'M JUST BEING, I'M JUST BEING FRANK. YEAH. YOU KNOW, THAT'S YOUR ISSUE, BUT YOU GOING HAVE TO LET ME KNOW THAT YOU GONNA GET THIS. YEAH. OKAY. YEAH. BUT THAT'S, BUT UH, YOUR PRESENTATION WAS VERY, UH, UH, TO THE POINT. MM-HMM . I MEAN, I UNDERSTOOD A LOT MORE ABOUT THE CAUSE AND WHAT YOU'RE GONNA DO THAN WHAT YOU DID THE LAST TIME. BUT LIKE I TOLD YOU THOSE TWO THINGS I'D BE CONCERNED WITH. THANK YOU FOR YOUR PRESENTATION. OKAY. [00:50:01] YEAH. SO I'D JUST LIKE TO TALK ABOUT, JUST ADDRESS YOUR, YOUR, YOUR QUESTION AS FAR AS WHAT THE CITY IS GONNA GET AND MAKE AND BE REALLY CLEAR WITH THIS. SO WHEN WE ARE GOING OVER THE MODEL OF WHAT THIS NEEDS TO LOOK LIKE, WE UNDERSTAND THAT THE CITY CAN'T HAVE ANY RISK. YEAH. ALRIGHT. SO, AND THAT'S WHERE WE ARE WITH THE PROPOSAL THAT WE ARE, UM, THAT WE'RE PRESENTING THAT THE CITY WILL NOT HAVE ANY RISK. THE CITY WILL HAVE BE GETTING PAID OFF OF THE TOP LINE OFF OF THE GROSS OF THAT LANDFILL. NOT THE PROFIT, NOT THE NET INCOME, BUT THE GROSS. AND WHAT THAT LOOKS LIKE IS, AS YOU COME, WE IN, IN YEAR ONE OF FIRST OPERATION, WE'RE AT $41 MILLION. THE CITY'S LOOKING AT 5% OF ROYALTY IN THAT PARTICULAR, UH, IN NOW BECAUSE WE HAVE INVESTED $25 MILLION, WE WANT TO BE ABLE TO RECOUP THAT MONEY IN THE FIRST FIVE YEARS. SO WHAT WE ARE DOING, WE'RE DOING A GRADUATED, GRADUATED ROYALTY FROM 5% ALL THE WAY TO 10% IN THE 10 YEARS. AND WHEN WHAT THAT LOOKS LIKE WITH THE NUMBERS THAT WE HAVE PROJECTED THE CITY GETTING CLOSE TO $91 MILLION IN JUST THE ROYALTY. AND NOW THAT'S NOT INCLUDING THE SAVINGS THAT YOU'LL HAVE ON EQUIPMENT PURCHASES, ON MAINTENANCE, ON EMPLOYEES PERMITTING OR ANYTHING. 'CAUSE EVERYTHING THAT WE'RE DOING IS GONNA BE, WE'RE GONNA BE TAKING CARE OF IN HOUSE. WE'LL TAKE THE RISK AND WE GOING NEED YOUR ASPIRIN. THAT'S WHAT I YOU. OKAY. THIS SOUNDS ALMOST TOO GOOD TO BE TRUE. I AM TELLING YOU, I, YOU KNOW, IT'S, MY MAMA TOLD ME WHEN IT'S TOO GOOD TO BE TRUE. IT'S TOO GOOD TO BE TRUE. BUT ANYWAY, I, I UNDERSTAND A WHOLE LOT BETTER THAN, UM, I DID, UM, COMING IN ON THE LAST MEETING THAT YOU GUYS PRESENTED. SO A LITTLE BIT MORE DETAIL. BUT, UM, WHEN YOU'RE SAYING LOSS OF, UM, I MEAN THAT YOU'RE GONNA TAKE CARE OF THE, UM, THE, OUR EMPLOYEES, UM, TAKE CARE OF, UM, UH, WE HAVE NO, NO UPFRONT COST THAT YOU NEED FROM THE CITY. YOU INVEST IN $25 MILLION. UH, UM, WE GONNA MAKE 5% OFF THE ROYALTIES. UM, JUST, JUST A LOT OF, UM, THAT I JUST STILL GOT TO HAVE SOME MORE, YOU KNOW, AND I, COUNCIL MEMBER, UH, DOUCETTE ASKED SOME QUESTIONS THAT I THOUGHT WHERE, WELL THEN WHERE, SHOW ME THE MONEY, WHERE'S THE MONEY COMING IN? AND SO YOU, I WAS LIKE, WELL I ALL, THIS SEEMS SO GOOD THAT IT'S LIKE, OKAY, WELL, WHERE YOU MAKE MONEY WHERE, AND YOU, UH, BROUGHT SOME CLEAR, MAKE SOME THINGS A LITTLE BIT CLEARER, BUT I AM STILL, UM, JUST STILL WANTING TO GET A LOT, JUST REVIEW OUR OWN LANDFILL AND THE OPTIONS OF WHERE WE'VE COME FROM AND WHERE WE ARE RIGHT NOW. AND THAT'S WITH OUR CITY STAFF AND GOING OVER AND MEETING WITH THEM SO I CAN GET MORE INFORMATION AS WELL ON THAT. BECAUSE, UM, LONG-TERM CONTRACTS ONCE SIGNED, UM, I KNOW SOME OF THE CITY WILL BE LOCKED INTO SOME LONG-TERM CONTRACTS BECAUSE WE, THIS HAS TO BE A LONG, LONG-TERM GOALS THAT YOU HAVE. UM, AND OUR TRANS MAKING SURE THAT OUR LEGAL DEPARTMENT AND EVERYBODY CAN GO THROUGH AND UNDERSTAND HOW THAT WORKS FOR US. UM, UM, AND JUST ACCOUNTABILITY, UM, EVEN UNDER THE MANAGEMENT, WHAT HAPPENS, YOU KNOW, IF IT DOESN'T, IT LOOKS SO GOOD THAT YOU GUYS ARE PAINTED A PICTURE THAT IT JUST LOOKS LIKE IT'S A, IT'S A PIE IN THE SKY AND IT'S GONNA BE, UM, IT'S GONNA BE ALL GRAVY. BUT I'M TELLING YOU, I I JUST GOT JUST A FEW THINGS AND UM, I WILL, UM, ADDRESS THEM WITH OUR STAFF. UH, COUNCIL MEMBER LEWIS, HE HAS SOME QUESTIONS. YEAH. SO THE FINANCE DIRECTOR, YOU LISTEN TO ALL OF THIS? NO, WHAT I WOULD LIKE TO SEE THE CITY AND I LIKE THE GROSS THING. OKAY. BUT I NEED TO GO, I MEAN, SHE GONNA BE DOING THE CHECKS AND MATTER HOW, WHAT THE CHECKS AND BALANCE ON WHAT IS THE REAL GROWTH. ARE WE GONNA HAVE A CITY EMPLOYEE, THE FINANCE DIRECTOR DIRECTLY MONITORING AND HAVING A STAFF MEMBER THAT MONITORING AS THE THESE DEALS COME IN OR THE, YOU KNOW, AS THINGS COME IN, HOW, HOW, HOW YOU ALL GONNA BE MONITORING Y'ALL NEGOTI THAT WHAT'S OUR CHECKS AND BALANCE? THAT'S, THAT'S OUR CHECKS AND BALANCE FINANCE LADY. OKAY. YEAH. SITTING RIGHT OVER THAT. SO HOW WE KNOW WHAT IS TRUE CROSS VERSUS CORRECT. AND THEN AGAIN, I WOULD LIKE TO SEE THE FINANCE DIRECTOR, UH, FOR THE FIRST 10 YEARS, UH, WE GETTING OUT OF THE BUSINESS OF THE LANDFILL. OKAY? MM-HMM . AND YOU GOT ALL OUR EMPLOYEES. OKAY. YES. BUT I WOULD LIKE TO SEE THE FINANCE DIRECTORS CONTINUE TO SET ASIDE FUNDING JUST IN CASE WE HAVE TO SOMETHING Y'ALL HIT A HEAT CUP OR SOMETHING. I DON'T KNOW. LEMME [00:55:01] GIVE YOU AN EXAMPLE. THEY TRIED TO BO UH, WHAT'S IT CALLED? THAT COMPANY GOT THE, GOT THE LITTLE JOHNNY ON THE SPOTS. WELL ANYWAY, THEY WANTED TO, THEY, THEY CAME TO US FOR US TO GET OUT OF THE, THE GARBAGE BUSINESS AND ALL OF THE TRASH AND STUFF GET OUT OF THAT BUSINESS. WE DIDN'T, SO WE DID AN INTERNAL THING. WE HAD TO INTERNALLY HAD THE CITY STAFF TO BID TOO. AND, AND THE CITY STAFF BEAT 'EM. WHEREAS BEAUMONT SAW ALL THAT SAVINGS, DIDN'T HAVE TO BUY NO NEW EQUIPMENT, THEY TURNED IT OVER TO THE CONTRACTORS AND THEY GOT OUT OF THE BUSINESS AND THEY DID NOT SET ASIDE ANYTHING FOR FUTURE HICCUPS. AND THEY, THAT CON THAT COMPANY FILED FOR A RATE INCREASE AND BEAUMONT SAID, NO, WE CAN'T AFFORD IT. THEY PACKED UP AND LEFT. YEAH, THEY JUST WALKED OUT. THEY DIDN'T SAY, WELL, WE, UH, AT THE END OF THE YEAR OR THE END OF TWO YEARS, WE'LL PHASE IT A NO, THEY LEFT. NOW BEAUMONT HAD TO SCRAMBLE AT TO SCRAMBLING, BUY EQUIPMENT AND STUFF AND GO GET BACK IN THAT BUSINESS. SO WE, I DON'T WANT THAT TO HAPPEN TO US BECAUSE I DON'T, I HAVE NO CONTROL OVER WHAT'S GOING, HOW Y'ALL GONNA BE DOING YOUR BUSINESS. ONLY THING WE GOT CONTROL OVER IS, UH, THE GROWTH. MM-HMM . WE GOT TO HAVE OUR STAFF MONITORING WHAT'S YOUR GROWTH, WHAT IS REAL? AND WE CAN'T, YEAH, I TRUST YOU, BUT I'M GONNA, I WANT TO VERIFY. OKAY? MM-HMM. CORRECT. YEAH, THAT'S A VERY GOOD POINT. UH, COUNCIL MEMBER LEWIS, THE, SO PREVIOUS TO, UH, I WORKED A, A DECADE FOR REPUBLIC AND A DECADE FOUR WASTE MANAGEMENT BOTH, SO MM-HMM . AND AS A CONSULTANT TO 'EM FOR 17 YEARS IN BETWEEN THERE, UM, THE, THE WAY THAT SOMETHING LIKE THAT IS USUALLY HANDLED, I WOULD OFFER UP THE CITY OF ARLINGTON AS AN EXAMPLE, IS THERE IS A, UH, A, A STAFF OR AN EMPLOYEE OF THE CITY THAT SITS IN THE SCALE HOUSE OF THE CITY OF ARLINGTON LANDFILL. AND THEN, UH, ROUTINELY LIKE IT USUALLY AT, UH, COUNCIL MEETINGS. UH, REPUBLIC WHO HAS THE CONTRACT FOR THE CITY OF ARLINGTON MAKES A PRESENTATION, WALKS THROUGH THE NUMBERS FOR WHATEVER THE TIME PERIOD IS THAT THE CITY WANTS TO LOOK AT A MONTH, A SIX MONTHS, QUARTER, WHATEVER. UH, AND THEN, UH, WHOEVER THE OPERATIONS MANAGER OR THE GENERAL MANAGER IS, THEY, THEY HAVE LIKE A 30 OR 20 MINUTE PRESENTATION THAT THEY MAKE ON WHAT'S GOING ON AT THE LANDFILL AND, AND THAT SORT OF THING. TONNAGES RECEIVED, THINGS LIKE THAT. SO IN THE CASE OF EISG, THERE ALMOST CERTAINLY WOULD BE TRANSPARENCY AND THE ABILITY, UH, TO PRESENT AND CERTAINLY BRING THE COUNCIL IN THE CITY AND TO, UH, THE KIND OF OPERATION THAT WE REALLY ARE LOOKING FORWARD TO, UH, HAVING AT THE PORT ARTHUR LANDFILL. SO YOU GUYS WOULD KNOW. SO ONE OF THE THINGS THAT I'M INTERESTED IN, WE PAID THAT WOULD BE ONE OF THE FINANCE, OUR STAFF MEMBERS MONITORING THAT PAID FOR BY US. I WOULDN'T WANT Y'ALL TO BE, UH, BE PAYING FOR IT. OKAY? CORRECT. IF YOU PAY FOR IT, YOU CONTROL IT. OKAY. NO PROBLEM WITH THAT. SO I WANT TO TAKE THE CONTROL OF THAT MONITORING FROM YOU ALL AND, AND LET OUR STAFF CONTROL IT. THAT'S, THAT'S BEEN THE PROBLEM. AND IN, UH, AND IN INDUSTRY AGREEMENTS AND WHAT HAVE YOU, WE GOT COMPLIANCE OFFICER, THEY WANTED TO PAY THEM. I SAID, OH NO, WE WILL PAY THE, OUR COMPLIANCE OFFICER. THEY PAID, THEY CONTROL. I HAVE A, I HAVE A FEW MORE. I HAVE, I HAVE SEVERAL LIGHTS GOING GUYS. I'M TRYING TO GO IN ORDER. I HAVE ACCOUNTS MEMBER EVER FEEL AT THE TOP WHO'S HAD OUR HAND UP, UM, BEFORE. AND SO COUNCIL MEMBER EVERFI, IF, UM, THANK YOU MA'AM. GOOD MORNING. SO I DO HAVE A, A FEW QUESTIONS. WHAT, JUST FOR CLARITY, DID HE LEAVE THE CITY? HOLD ON JUST A MINUTE. WE NEED A QUORUM AND AT THE DIOCESE. OH, OKAY. DON'T LEAVE. NO, NO. YOU GOT TO BE HERE. YOU GOTTA BE AT THE DESK, BRO. OKAY. ALRIGHT, THANKS. OKAY, COUNCIL. YES MA'AM. IT'S OKAY, MA'AM. YES, YOU CAN CONTINUE. OH, OKAY. UM, YOU CONFIRMED THAT THE CITY OF PORT ARTHUR WILL MAINTAIN OUR EMPLOYEES. THEY WILL BE CITY OF PORT ARTHUR EMPLOYEES, HOWEVER, THEIR PAYROLL WILL BE PAID BY EISG. THAT'S CORRECT. OKAY. AND THEN WHO MANAGES AND [01:00:01] TRAINS THE STAFF? WE WILL MANAGE AND TRAIN ALL OF THE STAFF. SO WHAT IT, UM, WHAT IT KIND OF EQUATES TO IS THAT, YOU KNOW, THE CITY, WE WANT THE EMPLOYEES TO STILL BE ON THE CITY'S PAYROLL AND, AND HAVE A LOT OF THE BENEFITS OF THE CITY, TMRS AND ALL THAT, ALL THOSE DIFFERENT, UM, BENEFITS RETIREMENT SYSTEM AND SOME OF THE, UM, THE DIFFERENT, DIFFERENT TAX INCENTIVES. I KNOW THAT THE CITY NEEDS TO, UH, BENEFIT FROM. SO WE WANNA MAKE SURE WE MAINTAIN THEM ON OUR PAY, ON THE, ON THE, UH, CITY'S PAYROLL. BUT WHAT WE WOULD BE DOING IS BASICALLY PAYING THE CITY QUARTERLY, UM, FOR THOSE, UH, REIMBURSING THE CITY QUARTERLY FOR THOSE, UM, EMPLOYEES. OKAY. THE SECOND PART OF THAT QUESTION IS, WHO WILL TRAIN THE STAFF FOR THESE UPGRADES AND WHO WILL MANAGE THEM ON SITE? UH, WE WILL HAVE OUR OWN MANAGEMENT TEAM. WE'LL HAVE OUR OWN MANAGEMENT TEAM, AND WE'LL BE DOING ALL THE TRAINING, UM, ANY RE-CERTIFICATIONS, ANY TYPES OF TRAINING THAT'S GONNA BE NEEDED TO HANDLE THE CURRENT MUNICIPAL SOLID WASTE AND ALSO, UM, THE NEW, UH, INDUSTRIAL WASTE THAT'LL BE COMING IN. OKAY. AND IS, UM, WILL EISG PICK UP THE MUNICIPAL TRASH AND ARE YOU BILLING US FOR IT OR ARE YOU JUST ALLOWING US TO DR WE STILL PICK UP OUR MUNICIPAL TRASH AND WE DROP IT OFF TO YOU? YES. UM, THE, THE, THE CITY OF PORT ARTHUR WOULD STILL BE PICKING UP THE TRASH, BUT WE WOULD BE BUILT, YOU WOULD BASICALLY GET A BILL, UH, FOR IT. UM, OF COURSE YOU GUYS WOULD GET THE REVENUE FROM THE, THE CITY, UM, RESIDENTS, BUT THAT WE WOULD COME UP WITH A RATE WHERE YOU GUYS WOULD BE ACCEPTING THAT WE WOULD BE ACCEPTING THE MUNICIPAL TRASH, UH, TO THE LANDFILL. OKAY. SO THE CITY OF PERTON WILL STILL BE USING THE CITY EQUIPMENT TO PICK UP THE TRASH AND DELIVERING IT TO THE LANDFILL THAT EISG IS PROPOSING TO MANAGE. I WANNA MAKE SURE I'M CLEAR. YES. OKAY. REPEAT THAT AGAIN. RIGHT. OUR, OUR REGULAR TRASH THAT'S PICKED UP BY OUR STAFF, MUNICIPAL TRASH, MUNICIPAL WASTE, IT WILL BE, YOU'RE GONNA BUILD US, BUILD US FOR YOU PICKING WITH OUR TRUCKS. MM-HMM . YOU GONNA BUILD UP, YOU GONNA BUILD. SO WHAT, SO WHAT THE, SO WHAT THAT LOOKS LIKE, SO THERE IS A, A CERTAIN AMOUNT OF MONEY THAT THE CITY COLLECTS, RIGHT? SO WE'RE NOT GETTING THAT MONEY, SO WE'RE NOT GETTING ANY OF THE MONEY THAT THE CITY COLLECTS FROM THE CITIZENS. SO THAT MONEY THAT THE CITY, UM, RECEIVES FROM CITIZENS, WATER BILLS AND THINGS OF THAT NATURE FOR GARBAGE COLLECTION WOULD STAY WITHIN THE CITY'S BUDGET. AND SO THE CITY WILL IN TURN USE THAT FOR THE HAULING AND FOR THE, THE DUMPING FEES. OF COURSE, WE WOULD NEGOTIATE SOMETHING THAT WOULD BE REALLY FAVORABLE FOR THE CITY, WHETHER THE CITY IS STILL NOT IN ANY KIND OF DEFICIT OR ANYTHING. UM, IN TERMS OF, UM, THAT, THAT TRASH COLLECTION, THOSE TRASH COLLECTION SERVICES THAT SHOULD HAVE BEEN IN YOUR PRESENTATION YEAH. THAT SHOULD, THAT'S EXACTLY, AND THEN FOR ARE, AND WHAT YOU MENTIONED ABOUT THE, UM, EXPECTED 41000001ST YEAR AFTER FIRST FULL YEAR OF OPERATION, AND WE RECEIVED THE CITY RECEIVING THAT 5% GROSS. BUT IN ANOTHER PART OF THE PRESENTATION, IT SAID THAT THE EXPECTED INCOME, AND MAYBE THIS IS SOME YEARS DOWN THE LINE, $800 MILLION AND THE CITY WILL EARN A ROYALTY OF IN BETWEEN NINE TO 10%. TEACH ME WHAT, WHERE THAT COMES FROM. SO THAT'S THE INCREASE THAT WE WERE TALKING ABOUT IN TERMS OF THE ROYALTY INCREASE, WE'RE GONNA START THE ROYALTY AT 5%, UH, FOR THE FIRST THREE YEARS AND THE FOURTH YEAR, 6%, 7% IN THE FIFTH YEAR. AFTER THE SIXTH YEAR WE'RE GONNA, WE'RE GONNA BE MOVING THAT ROYALTY UP TO 10%. MAN, WHILE THAT SIX YEAR IS SO IMPORTANT, UM, OF COURSE WE HAVE OF COURSE, YOU KNOW, THE CAPITAL OUTLAY THAT WE HAVE AS FAR AS THE 25 MILLION CAPEX THAT WE'RE GONNA BE USING TO GET THIS LANDFILL UP TO, UH, WHERE WE NEED IT TO BE. WE WILL BE BASICALLY HAVE PAID OURSELVES BACK AT THAT POINT. UM, SO AT THAT POINT, WE CAN ALLOW THE CITY TO BENEFIT MORE IN THE, UH, ROYALTY AT THAT POINT. NOW, WHEN IT LOOKS LIKE, AND I KNOW, YOU KNOW, SOMETIMES THE NUMBERS LOOK A LITTLE BIG, BUT THEY ARE, THEY REALLY, WE ARE REALLY BEING CONSERVATIVE. LIKE WE ARE REALLY BEING CONSERVATIVE WITH THESE NUMBERS BECAUSE THAT IS A TREMENDOUS AMOUNT OF INDUSTRIAL WASTE THAT COMES AND LEAVES THIS AREA AND GOES OTHER PLACES. SO LIKE, LIKE FOR INSTANCE, IN THE FIRST YEAR OF FULL OPERATIONS WITH THE $41 MILLION, THAT IS REALLY, REALLY CONSERVATIVE. UM, WE EXPECT TO BE, YOU KNOW, AT UP TO A HUNDRED AND $110 MILLION IN YEAR 10. AND THAT'S, UM, [01:05:01] THAT'S WHAT ADDING ALL THE DIFFERENT SERVICES THAT WE HAVE. AND THAT'S WHY WHEN WE SAY ROYALTY, WE ARE NOT TALKING ABOUT, SO THERE, LIKE WE, UM, LIKE WE SAID, MR. LEWIS, THERE IS NO RISK TO THE CITY AT ALL BECAUSE IT'S, EVEN IF WE DID NOT MAKE MONEY, THE CITY WOULD STILL MAKE THEIR ROYALTY FEE. ALRIGHT. OKAY. AND THEN, AND MAYOR, I PROMISE Y'ALL, I'M ALMOST DONE. OKAY. WHAT HAPPENS AFTER THE, THE, UH, 30 TO 40 YEAR LIFESPAN WHO IS SUPPOSED TO REMEDIATE OUR APPROXIMATELY 240 ACRES ? THERE WOULD, THERE WILL NOT BE ANY REMEDIATION REQUIRED AT THIS IT THERE? YEAH, THERE WILL NOT BE. THEN YOU START, UM, TALKING ABOUT DOING THE WASTE TO ENERGY PROGRAM, WHICH IS UPGRADING THE LANDFILL, GETTING GAS SYSTEMS AND ALL THAT. UH, THERE WILL NOT REQUIRE ANY REMEDIATION BECAUSE WE HAVE LINER OF SYSTEMS THAT'S ALREADY BEEN PLACED BEFORE THE WASTE COMING. THAT'S THE REQUIREMENT BY THE TCEQ AND EPA AND THOSE ARE MONITORED APPROVED BEFORE WE GO TO ANY CONSTRUCTIVE CELL. IT HAS TO BE APPROVED BY THE TCEQ BEFORE WE CAN, UH, EVEN BRING ANY KIND OF WASTE IN THERE. SO THOSE, THOSE ARE ALL, YOU KNOW, THAT LANDFILL STAYS PERMIT, UH, STAYS AS EASE. THERE'S DIFFERENT IMPROVEMENTS THAT ARE DONE AT THE END OF THE DAY WHEN YOU, WHEN YOU GET TO YOUR, TO YOUR LIMITS CAN DO THE GAS OR YOU CAN, YOU CAN NEVER PUT A STRUCTURE ON THE LANDFILL, BUT YOU CAN ALWAYS DO, UM, SOLAR POWER, ENERGY THAT COULD BE FEED, UH, THIS IS, IT IS A LIFETIME. UM, COUNSEL, UH, LIFETIME. OKAY. AND, AND THEN THE LAST QUESTION I HAVE IS YOU SAID THAT YOU CANNOT, UM, YOU WOULD NOT BE ABLE TO, UH, WHAT'S THE WORD YOU USED? OH, OPTIMIZE. YOU WOULDN'T BE ABLE TO OPTIMIZE THE FULL POTENTIAL OF THE OPPORTUNITY WITH THE ONE SALE THAT WAS PRESENTED IN THE RFP. SO HELP ME UNDERSTAND WHERE THE NEW, UM, ARE YOU, ARE YOU ASKING, I JUST WANT TO BE CLEAR. ARE YOU ASKING FOR US TO EXTEND THE CURRENT RFP WITHOUT GOING THROUGH THE BID PROCESS AND ACCEPT YOUR CURRENT PROPOSAL AS IS? WELL, OKAY. SO THERE WERE A COUPLE OF QUESTIONS IN THERE. UM, SO THE FIRST THING IS, IS JUST FOR CLARITY PURPOSES, UH, THE, ANY CELL, EXISTING CELL, FUTURE CELL PAST CELLS ARE ALL INCLUDED IN ONE PERMIT. SO ONE PERMIT, ONE LANDFILL. THE PERMIT ITSELF IS WHAT DRIVES THE, THE, THE FUTURE OF THE LANDFILL. AND, UH, TAKES INTO ACCOUNT ALL THE OTHER THINGS, UH, THAT GO ALONG WITH THE LANDFILL, WHETHER IT BE COMPLIANCE, GROUNDWATER MONITORING, AIR EMISSIONS, THINGS LIKE THAT. UH, FUTURE CELL, UH, DESIGN AND CONSTRUCTION. IT ALL HAPPENS WITHIN ONE PERMIT. SO THE ONE PERMIT AS IT WAS ORIGINALLY, UH, UNDERSTOOD AND I THINK, UH, DISCUSSED. AND THEN IN THE RFQ, THE ONE PERMIT IS THE ONE IS THE ONLY PERMIT THAT CAN BE AMENDED OR MODIFIED. SO NONE OF THAT CAN TAKE PLACE WITH, UH, WITHOUT THAT PERMIT BEING IN PLACE. SO WHEN I READ THROUGH THE RFQ, WHAT I SEE, WHAT IS CONTEMPLATED IS THE ONE EXISTING PERMIT THAT'S, UH, BEING DISCUSSED OR BEING CONSIDERED. BUT YOU, UH, SO, AND, AND MAYBE CITY ATTORNEY, YOU CAN HELP ME WITH THIS, THE PROPO, I MEAN THE, THE, UH, RFQ THAT WAS SUBMITTED WAS FOR A SPECIFIC SALE, BUT THAT'S NOT WHAT'S BEING PROPOSED TO US. SO WHAT DO WE DO? DO WE HAVE TO DO ANOTHER RFP OR I'M, I'M SORRY. UM, ANOTHER RFQ OR IS THIS, OR E-S-G-E-I-S-G, ARE YOU ASKING US TO ACCEPT YOUR PROPOSAL WITHOUT GOING OUT FOR BID? THE R THE RQ THAT WE RESPONDED TO DID, UM, INCLUDE BOTH THE MSW AND THE INDUSTRIAL WASTE EXPANSION. UM, IT'S CLEARLY WRITTEN HERE IN THE REQUEST FOR PROPOSAL. I DON'T KNOW IF YOU'VE LOOKED AT IT. IT STATES, THE CITY OF PATO IS SEEKING QUALIFIED FIRMS TO FORM A JOINT VENTURE FOR THE DEVELOPMENT CONSTRUCTION MANAGEMENT AND OPERATION OF THE MSW LANDFILL. IT REFERS TO THE MSS W LANDFILL, WHICH IS THE EXPANSION AND COMING IN TO TAKE OVER THE MSS W LANDFILL. IF THE GENTLEMAN YOU BROUGHT HERE LAST TIME, UH, HAS SAID THAT'S NOT HISS INTENT, BUT HIS INTENT [01:10:01] IS NOT, IT'S NOT, UH, MAGNIFIED IN THIS RFQ. OKAY. IF YOU READ IT CAREFULLY, IT DID REFERENCE THE MSW LANDFILL AND THAT'S WHAT WE RESPONDED TO. AND THAT FROM THE, WHEN WE SAW THIS OPPORTUNITY WE BROUGHT TO THE CITY OF PERATO, THAT WAS CLEARLY STATED. AND THE, THE CONCERN THERE WAS, UH, THE EMPLOYEES, THE EMPLOYEE ISSUES, AND WE SAID WE GO IT ABLE TO ABSORB THE EMPLOYEES. SO I, I DON'T KNOW WHERE IT SAYS IT'S JUST INDUSTRIAL WASTE IN THIS, UH, AREA QUEUE. IF YOU READ, THIS IS YOUR DOCUMENT, IT'S NOT MINE. AND IT'S SPLIT CLEARLY STATED IN THERE. SO IF BY THE END SOMEONE SAID, UM, THAT'S NOT THE, IN THE WAY THEY INTENDED IT TO BE, BUT THAT'S NOT WHAT WAS WRITTEN HERE IN THIS DOCUMENT. SO YOU'RE SAYING IT, WHAT THE INTENT, WHAT YOU BID ON IS, IS, IS THE INTENT MAY HAVE BEEN INDUSTRIAL, BUT WHAT WAS PRINTED IN THE RFQ, UM, IT STATED SOMETHING ELSE. YES. IT SAYS IN EXPANSION OF THE M MSS W WHATEVER THE EXPANSIONS INCLUSIONS, WHICH INCLUDE THE INDUSTRIAL WASTE THAT WE BRINGING INTO THE MSW LANDFILL. SO THERE DON'T NEED TO GO TO ANY NEW, UH, CITY ATTORNEY. CAN, CAN WE GET CLARITY ON CITY ATTORNEY ON THAT? I KNOW YOU REVIEW THOSE. I'D PREFER TO DISCUSS THIS IN, IN EXECUTIVE SESSION WITH THE CITY COUNCIL. OKAY. ALRIGHT. OKAY. ALRIGHT. COUNCIL MEMBER FRANK. THANK YOU, MAYOR. THAT'S ALL I HAD. THANK YOU. COUNCIL MEMBER, FRANK. ALRIGHT. UM, GREAT PRESENTATION. UM, I, I DON'T, UM, IN ANY WAY, UH, HIDE THE FACT. I THINK THAT THIS IS A GREAT OPPORTUNITY FOR PORT ARTHUR. I THINK THAT IT'S A GAME CHANGER, UH, FOR OUR CITY. UH, IT, AGAIN, UH, IT'S NOT REINVENTING THE WHEEL. IT IS ALREADY BEING DONE IN, AS YOU SHOWED US, 72% OF THE CITIES, I THINK IT IS IN THE STATE OF TEXAS. AND THEN YOU, UH, DID, UH, MENTION THE FACT THAT IT IS GOING, THAT THE CITIES THAT AREN'T CURRENTLY DOING IT, UM, UH, ARE HEADED THAT WAY. MM-HMM . I THINK OUR LOCATION AS WELL, UH, POSITIONS US, UM, TO DO IT. UM, I UNDERSTAND, UM, UM, KIND OF TREPIDATION OR HESITANCY OF OUR, UM, OF OUR, UM, COUNCIL MEMBERS BECAUSE WE CARRY THE WEIGHT OF A CITY ON US AS WE MAKE DECISIONS, UH, NOT JUST NOW, BUT FOR THE COUNCILS THAT FOLLOW US. SO THIS IS NOT SOMETHING THAT WE DO LIGHTLY, BUT AT THE SAME TIME, IT IS SOMETHING, UH, THAT WE'RE CALLED TO DO, UH, AS WE LOOK FORWARD TO TRYING TO, UM, MOVE OUR CITY INTO THE 21ST CENTURY. UH, AND POSITIONING, UH, THIS CITY, UH, TO DO SOMETHING, UM, THAT WE NEED TO DO. UM, MY OPINION, AND I DON'T HAVE, I DON'T HAVE A, I DON'T HAVE A LAW DEGREE OR, UH, ANY, UM, LEGAL TRAINING, UH, PERHAPS I ALWAYS SAY THAT THEY KICK ME OUT OF THE BUSINESS BUILDING, BUT, UM, AT, AT LAMAR UNIVERSITY. BUT, UM, THE NUMBERS MAKES, THE NUMBERS MAKE SENSE FOR THE CITY OF PORT ARTHUR. THOSE NUMBERS ARE REALLY CONSERVATIVE NUMBERS, DOES NOT INCLUDE NEW EXPANSIONS. THIS IS FROM THE TCEQ SIDE. ALL THE NUMBERS THAT WE USED TO FOR THIS PRESENTATION. IT'S REALLY FROM, SINCE I'VE BEEN ON COUNCIL, WE'VE DONE EVERYTHING THAT WE COULD TO TRY TO MAKE THE LANDFILL PROFITABLE. UH, AND WE, UH, THE, THE MAKE IT, UH, YOU WANNA GO AHEAD AND CONTINUE? YEAH, I'M, I'M, I'M TRYING TO, I KNOW YOU ARE TAKING, I'M JUST, BUT ANYWAY, SO, UM, WHERE WAS I? UH, SO IT WAS PROFITABLE, SO IT WAS PROFITABLE. UM, ONE OF THE THINGS THAT HAS ALWAYS HAPPENED IS THAT I KNOW THAT WHEN WE STARTED TALKING ABOUT IT, IT, IT WAS, IT, YOU KNOW, THAT THE INITIAL CONVERSATION WAS JUST FOR A NEW SALE THAT WOULD HAPPEN AND THAT WE WERE GOING TO JUST LOOK AT THE INDUSTRIAL SIDE. WHEN I TALKED TO DR. HANEY, UH, AND HE WOULD SHARE THAT, HE WOULD ALWAYS, UH, SAY THAT IT WAS ABOUT THE, THAT WE WERE MISSING OUT ON THE INDUSTRIAL SITE. BUT I BELIEVE THAT THE REASON WHY IT IS IMPERATIVE AND IMPORTANT THAT WE GO ALL IN FROM THIS PARTICULAR STANDPOINT IS, IS THAT YOU'VE MADE IT CLEAR THAT FOR COMPANIES TO COME AND UTILIZE THIS NEW LANDFILL, THERE HAVE TO BE SOME UPGRADES THAT ARE DONE. COMPANIES ARE NOT GONNA COME, COMPANIES ARE NOT GONNA COME WHERE THEY HAVE TO BUY NEW TIRES AND BACK OVER TRASH, UH, WHERE THE EQUIPMENT THAT [01:15:01] THEY BRING IN AND THEY SPEND MILLIONS OF DOLLARS ON THEIR EQUIPMENT THAT THEY'RE GONNA COME IN AND, AND JEOPARDIZE, UH, THAT EQUIPMENT. WE DON'T HAVE THE CAPABILITY NOW FOR THE WIDE TURNS THAT ARE NEEDED. AND SO THE UPGRADE IS GOING TO BE NEEDED. AND I THANK YOU FOR DOING THAT. IN THE PRESENTATION I LOOKED AT, I READ, UM, THE RF, THE RFP, AND AS I READ THE RFPI SEE WHAT YOU'RE SAYING, UM, UH, UM, ABOUT WHY YOU BID IT THE WAY THAT YOU BID IT. AND, AND I UNDERSTAND ABOUT THE PERMIT COVERING THAT. SO WE'LL LISTEN TO OUR ATTORNEY, BUT I'VE ALWAYS UNDERSTOOD WHY, UM, YOU BID THE ENTIRETY OF THE LANDFILL AND WHY IT WAS NEEDED. AND I'M OF THE CONCERTED OPINION THAT IT IS COVERED IN THIS RFP. OF COURSE, WE'LL LISTEN TO OUR ATTORNEY, UH, AND, UM, AND, UH, SEE WHAT SHE SAYS. BUT I SEE IT AS A WIN-WIN FOR THE CITY OF PORT ARTHUR. OKAY. COUNCIL MEMBER KEN LAW. UH, THANK YOU MAYOR. THANK YOU GUYS FOR YOUR PRESENTATION. I KIND OF WANTED TO SPEAK LAST BECAUSE I WANTED TO HEAR EVERYTHING YOU HAD TO OFFER AND, UM, I DO HAVE SOME CONCERNS. AND WHEN SOMETHING IS, UM, A LITTLE TOO TRUE, I GOT SOME QUESTION MARKS ABOUT IT TO BE HONEST WITH YOU. UH, MY FIRST QUESTION TO YOU GUYS, WHAT ARE SOME OF THE CITIES ARE YOU WORKING WITH RIGHT NOW? IF YOU COULD TELL ME THAT FOR THE RECORD SO WE CAN HAVE IT ON TAPE. WHAT ARE SOME OF THE CITIES? ARE YOU WORKING MUNICIPALITIES? WE, WE JUST FINISHED A PROJECT WITH THE CITY OF MACAU. CAN CAN YOU COME TO THE CITY? MCALLEN, MCALLEN, WE COULDN'T HEAR YOU. SORRY. I MEAN, FOR THE RECORD. SO WE CAN HAVE YOU. SO WE CURRENTLY NOT DOING ANY PROJECTS RIGHT NOW. YOU'RE CURRENTLY NOT DOING ANY PROJECTS RIGHT NOW IN SEVERAL, NO CURRENT PROJECTS AT THIS TIME, BUT WE, WE'VE HAVE OVER 50 TO A HUNDRED DIFFERENT SITES THAT WE'VE DONE AND DEVELOPED AND MANAGED PRIOR TO HANDING OVER TO THE OWNERS. BUT, SO THIS IS, HUH? I'M SORRY, I GOTTA ASK, I'M INTERRUPTED. GO AHEAD. I KNOW YOU GO. SO YOU CURRENTLY HAVE NOT WHAT YOU'RE PROPOSING TO THE CITY OF PORT ARTHUR, YOU'VE NEVER DONE IN THE CITY BEFORE. WE'VE BEEN IT FOR SEVERAL FROM CITY OF BEAUMONT. THAT'S WHAT WE'RE ASKING YOU. WHAT CITIES HAVE YOU WORKED WITH BEFORE? YES. WHAT ARE THEY? UM, UM, VICTORIA, UM, UM, BEAUMONT. BEAUMONT RIGHT HERE. UM, MACALLAN, UH, GO AHEAD. SO, SO THIS IS GONNA BE A FIRST WHAT, WHICH, OH, GO AHEAD. THIS IS GONNA BE THE, ONE OF THE VERY FIRST OF ITS KIND THAT YOU GUYS HAVE ENTERTAINED WITH YOUR COMPANY, RIGHT? YA, THIS IS NOT GONNA BE THE VERY FIRST INDUSTRIAL VERSUS MUNICIPALITIES. SEE, I'M KIND OF, I'M KIND OF CLOUDY ABOUT THAT AND I WANT TO GET A STRAIGHT ANSWER. I UNDERSTAND. LET ME, COUNCIL MEMBER KEN LAW, LET ME TRY TO CLEAR A COUPLE OF THINGS UP. UH, SO, UH, COLLECTIVELY. INDIVIDUALLY, OKAY. WE HAVE ALL WORKED AT, UH, ALMOST EVERY CITY LANDFILL THAT YOU COULD, THAT I COULD NAME FOR YOU. AND IF YOU WANT ME TO, I CAN PUT TOGETHER A LIST WITH CONTACTS, UH, THAT, WHERE I HAVE WORKED AT THE CITY LANDFILL, EITHER ON BEHALF OF REPUBLIC SERVICES, WASTE MANAGEMENT, OR AS, UH, UH, WASTE CONNECTIONS OR AS A, UH, CONSULTING ENGINEER, UH, UNDER , WHERE, WHICH IS WHERE I WORK NOW, OR IN CONJUNCTION WITH EISG. UH, AND THOSE, BUT JUST AS AN EXAMPLE, AS A CROSS SECTION, TO ANSWER YOUR QUESTION RIGHT NOW IS, UH, THE CITY OF CORPUS CHRISTI, UH, THE CITY OF VICTORIA, UH, SPECIFICALLY DARYL ACK, WHO, WHO WAS THE SOLID WASTE MANAGER WHO IS NOW THE ASSISTANT, UH, CITY MANAGER, I BELIEVE. UH, UH, CERTAINLY THE CITY OF WACO. WE HAVE CONTACTS AT, WE'VE WORKED WITH THEM, THE CITY OF FREDERICKSBURG, UH, WHOSE, UH, UH, WHOSE LANDFILL IS, IT'S CURRENTLY, UH, MOTH BALD ONLY, ONLY ACCEPT A HELLO TODAY. BUT, UH, CERTAINLY THEM, UH, AND, UH, UH, THE CITY OF VANHORN IN WEST TEXAS. OKAY. UH, THE CITY OF ALPINE. UH, I'LL BE HAPPY TO PUT TOGETHER A LIST. YEAH. AND, AND THE REASON WHY YOU, I DO WANNA DO MY, I THINK COUNCILMAN LEWIS MADE A GREAT POINT WHEN HE TALKED ABOUT THE CHECKS AND BALANCE. OF COURSE, YOU KNOW, ONCE, YOU KNOW, WE GO INTO DELIBERATION, I DO WANT TO CHECK AND BALANCE WITH YOU GUYS. I WANNA KNOW WHAT EISG IS DOING OR WHAT THEY'VE DONE IN THE PAST. I MEAN, THIS IS A BIG DECISION. I THINK MY COHORT, UH, COUNCILMAN FRANK, KIND OF SEEN THE CLOUDY, UH, LOOK THAT I HAD, AND I DO HAVE CONCERNS, BUT IT SOUNDS REAL, REAL GOOD. AND I THINK, UH, IN THE MEETING THAT YOU HAD BEFORE, I WAS UNDER THE IMPRESSION THAT IT WAS JUST GONNA BE INDUSTRIAL. I'M GONNA BE HONEST WITH YOU, WITH THE RFP, I THINK COUNCILMAN EVER FIELD WAS RIGHT WHEN SHE SAID THAT, BECAUSE THAT'S THE IMPRESSION THAT I HAD WHEN YOU GUYS PRESENTED AND [01:20:01] TO FIND OUT NOW IT'S, YOU KNOW, IN THE RFP OR RFQ THAT IT WASN'T REALLY STATED IN THERE. SO I DO HAVE A CONCERN ABOUT THAT. AND I THINK COUNCILMAN EVERFI WAS ABSOLUTELY CORRECT, BECAUSE THAT'S THE SAME IMPRESSION THAT I HAD THAT YOU WANTED TO CONCENTRATE AND CALCULATE ON THAT SPECIFIC CELL, MEANING INDUSTRIAL, BECAUSE THAT WAS SOMETHING THAT DR. HANEY TALKED ABOUT BEFORE, THAT WE ARE MISSING OUT. I'VE TALKED TO HIM MANY A TIMES, HE HAS A LOT OF IDEAS THAT WE ARE JUST NOT UTILIZING THAT WE SHOULD. AND I TALKED TO HIM PERSONALLY ABOUT THAT. SO MAYBE IT'S COMING INTO A CLEAR PICTURE FOR ME. UH, NOW, UH, I DO, YOU KNOW, THE BILLING RATE THAT WE TALKED ABOUT, THAT YOU TALKED ABOUT EARLIER, YOU KNOW, HOW MUCH WOULD YOU BE BILLING THE CITY? I MEAN, WHAT TYPE OF RATE? I MEAN THAT WOULD WE GET, AND YOU'RE ABSOLUTELY RIGHT. WE DO BUILD OUR CONSUMERS, OUR CUSTOMERS, OUR CITIZENS, A CERTAIN RATE AMOUNT. I'M NOT SURE ABOUT, YOU KNOW, WHAT'S THE TOTAL, I'VE NEVER ASKED THAT QUESTION TO LYNN. WHAT IS ACTUALLY WE GETTING A YEAR? SO I DO HAVE SOME QUESTIONS ABOUT THAT. AND I THINK THAT SOME OF THE OTHER QUESTIONS THAT I, I HAVE HERE ON MY, MY, UH, PAD THAT I'M GONNA WAIT UNTIL WE GET INTO EXEC AND TALK MORE ABOUT IT. BUT YOU HAVE MY EAR. UH, OH, GO AHEAD. YOU HAVE MY EAR. UH, I AM INTERESTED, UH, I FEEL THAT, YOU KNOW, IF ANY COUNCIL MEMBER, I'M ONE OF THE MAJOR ONES THAT HAVE A CONCERN ABOUT EQUIPMENT AND MAINTENANCE COST ON OUR, OUR EQUIPMENT. I MEAN, WE SPENT A LOT OF MONEY ON OUR TRUCKS AND, AND I JUST DON'T LIKE IT. AND I'VE QUESTIONED THAT A LOT SINCE I'VE BEEN ON COUNCIL. SO, UH, LYNN, JUST, YOU DON'T HAVE TO MOVE JUST FOR, IF YOU HAVE THIS NUMBER, UH, DO WE GET ABOUT 2 MILLION A YEAR ON, UH, ON, ON, ON COLLECTIONS? I MEAN, IF YOU, IF YOU DON'T HAVE IT, YOU CAN COME DOWN TO EXEC AND COME ON. IF YOU WOULDN'T MIND, LYNN, BECAUSE I'M, I'M TRYING TO, YOU KNOW, MAYOR, I JUST WANT TO KIND OF GET THIS TOGETHER. OH, I WAS GONNA ASK, BUT I WANT TO ASK IT. I GOT MY QUESTIONS, SO Y'ALL SEE HOW YOU KEEP TALKING? I GOT MINE RIGHT HERE. BUT KNOW FROM OUR STAFF, FROM OUR STAFF, IT'S A WORKSHOP. SO YES, MA'AM. I'LL HAVE QUESTIONS FROM OUR STAFF AS WELL, MA'AM. UH, YOU KNOW, BECAUSE IT'S GONNA BE A CHECKS AND BALANCE. AND I DO AGREE WITH COUNCILMAN LEWIS WHEN HE SAID, I TRUST YOU, BUT I TRUST US TOO. TRUST, YOU KNOW, I WANT VERIFY WHAT YOU'RE TELLING ME AT ALL COSTS BECAUSE THIS IS TAXPAYER'S, YOU KNOW, MONIES. SO, UH, IF, IF WE CAN GET THAT LYNN, UH, DOWNSTAIRS AND THANK YOU GUYS AND MAYOR, I DON'T HAVE ANY MORE QUESTIONS RIGHT NOW. OKAY. YOU KNOW, GUYS, WE'RE, WE ARE NOT POSTED FOR EXECUTIVE SESSION TODAY, SO I HAVE TO DO IT. UM, WE'D HAVE TO DO IT ON THE 18TH. YOU, I THINK WE CAN POST IT THEN. UM, CITY MANAGER, UH, I'M SORRY, DR. , UH, JUST A COUPLE NOTES. KIND. THANK YOU GUYS FOR THE PRESENTATION. UH, JUST WANTED TO MAKE THE COUNCIL AWARE. WE HAVE THE PUBLIC SERVICES STAFF PRESIDENT. THEY'VE HEARD THE QUESTIONS THAT YOU'VE HAD, AND WE'RE GOING TO ASK THEM, UH, DR. UH, MR. KAWAN, DR. HANEY, AND THE REST, UH, OF THE STAFF, UH, MS. ROBERTS TO BEGIN GATHERING THAT INFORMATION TO PROVIDE YOU WITH THE REPORTS THAT YOU'VE REQUESTED. AND ALSO, UH, THE STAFF WILL BE SEEKING CLARITY FROM THE COUNCIL AS FAR AS THE DIRECTION THAT YOU WOULD ASK THE CITY TO GO RECOGNIZE THE COUNCIL JUST RECENTLY INVESTED IN BOTH EQUIPMENT AND PERSONNEL. RIGHT? I WAS GONNA BRING, WE JUST SPENT FOR THAT, UH, ALMOST, WHAT, HOW MANY MILLION ON NEW TRUCKS? 6.8 MILLION. THAT'S BEFORE I GOT HERE. CITY COUNCIL, JUST 6.8 MILLION. GARBAGE AND TRASH. IT'S THE GARBAGE AND TRASH RIGHT. FOR ALL THOSE DIVISIONS AND 21 NEW STAFF MEMBERS THAT WE BRINGING ON BOARD. SO JUSTICE NO WAS NOT THAT WAS INCLUDED, BUT JUST TO HAVE COUNCIL WHERE THAT STAFF WILL BE SEEKING DIRECTION AS TO HOW THE COUNCIL WOULD LIKE US TO SEE LIKE, TO AT ALL OF IT. UM, OKAY. THANK YOU. CITY MANAGER. LET, I HAVE A COUPLE OF QUESTIONS HERE JUST BEFORE YOU GUYS LEAVE. THANK YOU ALL AGAIN FOR THE GREAT PRESENTATION. BUT JUST IN CASE, UH, THERE ARE PENALTIES ASSESSED TO US AND FINES OR ANYTHING LIKE THAT, WHO, WHO WOULD PAY THOSE, UM, PENALTIES? WHO PAYING FOR THAT? YOU PAY FOR THOSE? MM-HMM. AND THEN, UH, THOSE ARE GONNA BE STIPULATED IN A, IN CONTRACT NEGOTIATION. I'M SORRY? I SAID THAT THAT WOULD BE STIPULATED IN THE CONTRACT NEGOTIATION. THAT WOULD BE IN THE CONTRACT STIPULATED THAT WE WOULD, IF WE DEVELOPED A CONTRACT WITH YOU GUYS, YOU SAID IT WOULD BE NEGOTIATED CORRECT. AT THAT TIME. WHO WOULD TAKE ON THAT? THAT'S CORRECT. RESPONSIBILITY. AND, UM, JUST QUICKLY, UM, THE DATA THAT YOU USED TO COME UP WITH THE REVENUE, HOW DID YOU GATHER THAT DATA, THE DOLLARS AND CENTS TO YOU? I KNOW THAT MR. MCGRIFF SAID THAT BASICALLY IT WAS LOOKING LIKE IT WAS VERY CONSERVATIVE MM-HMM . UM, TELL ME HOW YOU COME UP WITH THAT. THE, THE PROJECTIONS PERIOD. WELL, A LOT OF THE, UM, IT, IT COMES FROM SOME OF THE EXISTING, UM, LOADS AND, UH, WASTE THAT'S COMING OUT OF THE PLANTS, THE, THE LOCAL PLANTS THAT ARE, THAT ARE NOT BASICALLY BEING, FOR INSTANCE, THAT'S FOUR DIFFERENT PLANTS THAT WE KIND OF LOOKED AT. AND, UH, WE KIND OF LOOKED, WE LOOKED AT TOTAL, WE LOOKED AT VALERO, UH, [01:25:01] IN THE RAMA AND MOTIVA MM-HMM . AND SO THESE ARE LIKE THE BIO SLUDGE. THESE ARE, ARE BASICALLY BYPRODUCTS OF RUNNING A, A REFINERY. AND SO THEY HAVE, THEY, THEY PRODUCE THIS WASTE EVERY DAY. MM-HMM . AND THESE ARE SOME OF THE, THE THINGS THAT WE USE TO KIND OF COME UP WITH SOME OF THESE NUMBERS. JUST REALLY WHAT THEY ARE DOING RIGHT NOW, UH, WITH THEIR, WITH THEIR CURRENT WASTE BASED UPON THOSE REFINERIES AND WHAT THEY'RE NOT DOING WITH US, BECAUSE WE ARE NOT, WE DON'T HAVE THE INDUSTRIAL COMPONENT, WHICH IS WHAT WE WERE REALLY FOCUSING ON. RIGHT. THAT YOU GUYS STARTED THE PROCESS WITH BEFORE I GOT ON COUNCIL. YES, ABSOLUTELY. UM, GOT BACK TO COUNCIL. OKAY. UM, MY LAST, UM, QUESTION, UM, AS YOU OPERATE, UM, IF YOU WERE TO OPERATE IN THE NEGATIVE AT SOME POINT, WE NEVER KNOW WHAT HAPPENS. UM, BUT WHO WOULD, UM, THEN WHERE WOULD THE, UM, WHO WOULD PAY FOR THE NEGATIVE DURING OUR CERTAIN, THE YEARS? UM, WHO, WHO WOULD, WHO WOULD CONSUME THAT LOSS? IF, IF, YOU KNOW, WE, YOU'RE PROJECTING GREAT NUMBERS, IT LOOKS SO, SO JUST LIKE, MAN, THERE'S MILLIONS AND MILLIONS OF DOLLARS, BUT JUST IN CASE YOU DON'T SEE THAT HAPPENING AND, UH, THERE'S NEGATIVE DURING THIS TIME, WHO PAYS FOR THE LOSS OF THAT? WE WOULD INCUR THE LOSS. UM, BECAUSE OF COURSE WE ARE, BUT WE LOSE TOO BECAUSE WE HAVE EMPLOYEES THAT GOTTA BE PAID. AND THEN YOU HAVE, YOU REMEMBER, THERE'S NO, NO UPFRONT MONEY FROM US, SO, WELL, THE EMPLOYEES ARE, UH, BASICALLY A PART OF OUR EXPENSE, UH, STRUCTURE. SO THAT THEY WOULD BE JUST A, A PART OF, IF, IF THEY, WE HAVE $2 MILLION THAT WE HAVE TO PAY FOR CITY EMPLOYEES, THAT'S JUST A PART OF OUR EXPENSE STRUCTURE. SO AT THE, SO AT THE END OF THE DAY, IF THERE IS A LOSS OR THERE IS THIS, UH, THIS DEVELOPMENT BECOMES IN THE RED, AT ANY POINT WE WOULD, WE WOULD BE SHOWED IN THAT RESPONSIBILITY BECAUSE WE ARE OF COURSE, UM, AS WE GO INTO THE CONTRACT NEGOTIATIONS, WE'LL MAKE SURE ALL THAT IS IN THERE MM-HMM . BECAUSE OF COURSE WE ARE, IT'LL BE A PUBLIC, PUBLIC PRIVATE PARTNERSHIP. RIGHT. BUT WE'LL, WE OF COURSE, THE PRIVATE SIDE OF THAT, THAT THAT PUBLIC PRIVATE PARTNERSHIP. MM-HMM. THAT EXACTLY. YOU KNOW, SO WE'LL BE, WE'LL BE BASICALLY HANDLING OUR, OUR OWN BUSINESS AT THE END OF THE DAY. OKAY. YEAH. WELL, THAT'S ALL THE QUESTIONS I HAD. UH, COUNCIL MEMBER LEWIS, YOU JUST PUT YOUR LIGHT ON. YES. UHHUH, ARE YOU ALL A CLOSED CORPORATION? ARE YOU A PUB, YOU GOING PUBLIC OR AT SOME POINT IN TIME OR WHAT? ARE YOU PRIVATE? HMM. WE ARE, WE ARE A PRIVATE, WE'RE A PRIVATE OWNED CORPORATION. OKAY. ONE OF THE THINGS I'M, I WANT, WANT Y'ALL TO VERIFY LANDFILLS THAT THE LOCAL INDUSTRY IS, IS TRANSFERRING NOW WASTE AND STUFF TOO. HOW MANY OF THESE LANDFILLS IS COMING TO A, INTO THEIR PERMIT OR THEY GONNA BE CLOSING? IS THERE Y'ALL HAVE ANY IDEA? I'M PRETTY SURE YOU LOOKED AT THAT. YEAH. SO THAT'S A HUGE, THAT SHOULD BE A HUGE MARKET COMING ON IT PRECISELY. COUNCIL MEMBER LEWIS. UM, SO REPUBLIC WASTE HAS HAD A LANDFILL STRICTLY FOR CLASS ONE WASTE LOCATED IN WINNIE. IT'S NEXT TO THE CHAMBERS COUNTY LANDFILL. MM-HMM . AND THAT SITE HAS EXISTED SINCE IT WAS PERMITTED IN 1990 MM-HMM . AND IT WAS ORIGINALLY PERMITTED JUST TO RECEIVE CLASS ONE NON INDU, UH, NON-HAZARDOUS INDUSTRIAL WASTE. MM-HMM . THAT LANDFILL IS REACHING THE END OF ITS CAPACITY, THE END OF ITS LIFE. OKAY. AND IT'S, IT IS, IT'S NO LONGER OPEN TO ANY, UH, THIRD PARTY WASTE. ONLY REPUBLIC USES IT AND THE CAPACITY IS DIMINISHED TO THE POINT THAT THEY ONLY USE IT ONE TIME PER WEEK. SO IT'S ONLY OPEN ONCE PER WEEK FOR WHAT, HOWEVER MANY LOADS THEY CAN GET IN FOR THAT PARTICULAR DAY. UM, WITH THAT LANDFILL CLOSING, THAT CHANGES THE MARKET DYNAMICS IN SOUTHEAST TEXAS SIGNIFICANTLY. AND IT CERTAINLY CHANGES, UH, THE CLOSER THAT YOU GET TO THE COAST BECAUSE WASTE MANAGEMENT SITE IS IN BETWEEN MAURICE V AND DEWEY V. SO IT'S SIGNIFICANTLY OUTSIDE OF THE RADIUS THAT WE'RE TALKING ABOUT. AND CERTAINLY IS, UH, A FAR CRY FROM PORT ARTHUR. UM, THE, THE MAIN PRIVATE, UH, UH, LANDFILL THAT SERVICES THE AREA. MM-HMM . IS THE REPUBLIC LANDFILL OFF OF LABEL BE ROAD. MM-HMM . THE GOLDEN TRIANGLE LANDFILL, YOU GUYS MIGHT BE FAMILIAR WITH. IT'S BEHIND THE GOODYEAR PLANT. MM-HMM . UH, SO, UH, THAT LANDFILL, UH, HAS BEEN IN EXISTENCE SINCE [01:30:01] THE EARLY NINETIES. UH, IT RECEIVES BOTH MSW AND, UH, CLASS ONE NON-HAZARDOUS INDUSTRIAL, UH, THE WAY THAT THEY ARE CURRENTLY, THIS IS PART OF A TCQ ANNUAL REPORT, IF YOU'D LIKE TO LOOK IT UP. THE WAY, THE RATE AT WHICH THEY'RE CURRENTLY RECEIVING WASTE, THEY, THEY PROBABLY HAVE THE BETTER PART OF A DECADE STILL OF AIRSPACE THAT, UH, THEY CAN SEND TO THAT SITE. BUT THAT'S UNDER EXISTING CONDITIONS. IT DOES NOT TAKE INTO ACCOUNT THE, THE NEW L AND G PLANTS THAT ARE EITHER PERMITTED OR GOING TO BE CONSTRUCTED IN THE AREA. MM-HMM . AND THAT ALSO INCLUDES THE L AND G PLANTS THAT ARE IN SOUTHEASTERN, UH, CALC CHU PARISH AT THE END OF THE CALC CHU RIVER OVER IN CAMERON. THOSE FOLKS REALLY DON'T HAVE, UH, A SITE TO TAKE, UH, THEIR WASTE TO, EXCEPT FOR THE HAZARDOUS WASTE SITE IN CARLOS OR THE JEFF DAVIS PARISH LANDFILL. UH, THAT'S OVER BY JENNINGS. AND SO THAT WASTE IS PROBABLY GOING TO GO ON 82 AND B TRUCKED BACK INTO THIS PARTICULAR MARKET AREA 'CAUSE IT'S CLOSER. UH, SO THOSE ARE THE CHANGING MARKET DYNAMICS THAT WE'LL ALL SEE IN SOUTHEAST TEXAS OVER THE COURSE OF THE NEXT COUPLE OF YEARS. SO TO YOUR POINT, YOU'RE RIGHT, THINGS ARE GONNA CHANGE QUICKLY. RIGHT. AND ANOTHER TEMPLATE, YOU KNOW, I SPOTTED THAT EARLY ON BECAUSE YOU ALL ARE GETTING AHEAD OF THE CURVE. OKAY. WITH WHAT'S THE POTENTIAL, Y'ALL TAKING A RISK, OKAY. YES SIR. THAT'S CORRECT. BUT IF TO MAKE THE COUNCIL UNDERSTAND WHAT, WHAT WE, WHAT WE, WHAT YOU JUST DESCRIBED IS, IF WE WAS RECRUITING A RETAIL, A RETAIL, LIKE ALL THAT, THERE'S A REASON FOR ALL OF THAT RETAIL BUSINESSES OUT THERE ON THREE, ON 365 AND, AND MEMORIAL AND HIGHWAY 69, BEFORE THEY WENT INTO THAT BUSINESS OR BEFORE THEY GOT THEIR INVESTORS TO, TO ALLOW THEM TO EXPAND INTO, THEY STOOD ON MCC CORNER LIKE YOU ALL DID AND COUNTED TRAFFIC. YES SIR. YOU COUNTED THE TRAFFIC. THAT'S WHAT, SO WHAT Y'ALL BASICALLY AS A TEMPLATE, Y'ALL, Y'ALL KNOW WHAT THE TRAFFIC'S GOING TO BE ON THE INDUSTRY SIDE. OKAY. NOW, IN 1999, I COUNTED THE TRAFFIC AT JIMMY JOHNSON AND HIGHWAY 69. IT WAS 49,000 CARS PER DAY. THAT WAS IN 1999. SO LOOK AT THE, AND SINCE THEN IT WASN'T HARDLY ANYTHING THERE, BUT IT HAS EXPLODED OUT THERE. SO THEY GOT AHEAD OF THE CURB COUNTY TRAFFIC AND MOVED THEIR RETAIL. AND A LOT OF PEOPLE THINK THAT THE BUSINESS RETAIL LEFT THE DOWNTOWN AREA BECAUSE OF TRAFFIC. THERE IS NO TRAFFIC. YOU GO WITH A TRAFFIC OUT MIGRATION PATTERN, YOU GO, THAT'S WHERE YOU GO IF YOU'RE GOING DO MARKETING. SO Y'ALL, Y'ALL DID YOUR HOMEWORK. I Y'ALL DID YOUR HOMEWORK AS YOUR THANK YOU. UH, WE'D LIKE TO THINK OF IT AS A POOR MAN'S MARKET ANALYSIS FOR OH YEAH. FOR THAT KIND OF THING. BUT IT'S VERY TRUE. THE, UH, WITH THE L AND G, JUST TAKE FOR EXAMPLE, THE L AND G PLANT THAT SEMPRA IS BUILDING, YOU'LL HAVE ADDITIONAL JOBS. THOSE PEOPLE WILL OBVIOUSLY MOVE TO PORT ARTHUR. THEY'LL WANT HOMES. YOU'LL SEE LAND DEVELOPMENT. SO ALL THAT'S GOING TO AFFECT RIGHT. THE, THE WASTE GENERATION THAT TAKES PLACE WITHIN THE MARKET AREA. THAT IS RIGHT. COUNCIL, COUNCIL MEMBERS, I'M SORRY, WE'RE GONNA LOSE A QUORUM IN JUST A MINUTE. UH, ONE OF OUR COUNCIL MEMBERS HAVE TO LEAVE, BUT I DO, UH, I SEE HANDS UP . UH, YOU GOTTA MAKE IT, THE CITY ATTORNEY HAS A LIGHT ON, SHE'S HAD IT ON FOR A MINUTE. CITY ATTORNEY, MOVE. GO AHEAD PLEASE, IF YOU DON'T MIND. YOU WANNA GO AHEAD AND SPEAK. THANK YOU. I'M JUST TRYING. THE COUPLE OF QUESTIONS THAT I DO HAVE COUNSEL, JUST TO UNDERSTAND THEIR PROPOSAL AS I UNDERSTAND IT, WE HAVE EMPLOYEES THAT WORK AT THE LANDFILL THAT MANAGE THE OPERATIONS MM-HMM . AND THEN WE ALSO HAVE EMPLOYEES THAT ACTUALLY GO AND PICK UP TRASH AND GARBAGE, RIGHT? MM-HMM . AND SO IS THEIR PROPOSAL JUST TO TAKE OVER THE LANDFILL OPERATIONS AND NOT THE COLLECTION OF TRASH AT OUR CITIZENS' HOMES? THAT'S WHAT I UNDERSTAND. THAT'S OKAY. AND SO IN THE COLLECTION OF THAT TRASH, THEN THE CITY WILL BE RESPONSIBLE FOR MAINTAINING THE TRUCKS AND FOR PAYING THE EMPLOYEES THAT PICK UP THE TRASH. YES. AND THEN WE CHARGE RATES FOR THAT PICKUP, RIGHT. DUMP CHARGES, SAND, UH, NO. IS THERE A PROPOSAL THAT THEY WILL BILL THE CITY FOR US TO TAKE THE TRASH TO IT? YES. THAT'S WHAT HE SAID. OKAY. UHHUH. YES MA'AM. AND OH, I'M SORRY. AND, UM, I PAID ATTENTION TODAY , THERE WILL BE RATES [01:35:01] THAT THEY WILL BE ABLE TO BILL, SO THOSE RATES MAY IMPACT THE CITIZENS' FUTURE THAT THOSE RATES. YOU SAID THOSE RATES WILL DO WHAT NOW? THE RATES FOR THE COLLECTION? FOR THE COLLECTION THAT COMES FROM THE WATER BILL, THAT RATE INCLUDES THE DUMPING. SO IF THE DUMPING RATES INCREASE, THEN THE PASS ON THROUGH COSTS WOULD BE TO THE CITIZENS? WELL, THAT'S GONNA BE IN THEIR CONTRACT. THAT'S GONNA BE IN NEGO NEGOTIATED IN PUBLIC PRIVATE PARTNERSHIP IN THEIR CONTRACT. CORRECT. OKAY. AND THEN I UNDERSTAND THAT THEY HAVE HIRED AN ATTORNEY. IF THEY COULD GIVE ME THE NAME OF THEIR ATTORNEY? ABSOLUTELY. OKAY. OKAY. WE'LL GET THAT. YES. WE'LL, WE'LL FORWARD THAT TO YOU. UM, WE'RE GONNA GO ON AS COUNCIL MEMBER EVER FIELD, DO YOU HAVE A QUICK QUESTION AND THEN YES, JUST QUICK. OKAY. PLEASE. OKAY. OKAY. UM, I DO NOT WISH I, I THINK THAT YOUR PROPOSAL HAS BEEN GREAT. THESE NUMBERS LOOK AMAZING. HOWEVER, GOD FORBID IF YOU FILE BANKRUPTCY, IF YOU ARE WORKING WITH MORE THAN ONE COMPANY, HOW CAN WE MAKE SURE WE ARE FIRST ON THAT LIST? IS THAT EVEN POSSIBLE? I DUNNO. WELL, I HOLD THAT. I DON'T KNOW. I CAN'T ANSWER. RIGHT. SO, UM, IF I MIGHT, IF I MAY ANSWER, UH, COUNCILMAN THAT WE'RE EXPECTING THIS INCOME EACH YEAR, SO GOD FORBID WHAT HAPPENS AFTER THAT. AND YOU ALSO MENTIONED THERE'S NO, UH, REMEDIATION, BUT IF YOU FILE BANKRUPTCY AND YOU FALL OFF THE FACE OF THE EARTH TO US, THEN WE ARE STUCK WITH WHAT YOU HAVE. SO THERE HAS TO BE SOME TYPE OF PLAN FOR A REMEDIATION AND THE WHAT IF? YES MA'AM. SO YOU'RE AS PART OF YOUR PERMIT FOR THE LANDFILL YOU HAVE OR THE CITY OF PORT ARTHUR HAS, UH, AND, AND AS THE OPERATOR WILL CERTAINLY BE, UH, A PART OF THAT FINANCIAL ASSURANCE THAT IS POSTED WITH THE STATE OF TEXAS. AND THE REASON THAT FINANCIAL ASSURANCE IS POSTED IS IF, UH, FOR WHATEVER REASON, UH, EISG GOES AWAY, OR THE CITY OF PORT ARTHUR GOES AWAY, OR OR WHOEVER IS NAMED AS THE PERMIT HOLDER GOES AWAY, THAT FINANCIAL ASSURANCE IS THERE TO MAKE SURE THAT THE SITE IS CLOSED AND THEN CAN, UH, GO INTO POST CLOSURE CARE, WHICH IS A 30 YEAR TIMEFRAME IS STIPULATED BY TCEQ REGULATIONS AND STATE STATUTE. UM, THAT'S IMPORTANT TO, OBVIOUSLY TO THE CITIZENS OF PORT ARTHUR, BUT MORE IMPORTANT TO THE CITIZENS OF TEXAS. UM, SO THAT'S THAT FINANCIAL ASSURANCE AND PROBABLY, I WOULD GUESS IN Y'ALL'S CASE, A SURETY BOND OF SOME KIND OR SOMETHING LIKE THAT. UH, BUT WHATEVER THE MECHANISM, EXCUSE ME, WHATEVER THE MECHANISM IS THAT SUPPORTS THE FINANCIAL ASSURANCE IS ALREADY IN PLACE OR YOU WOULDN'T HAVE AN OPERATING LANDFILL. ALRIGHT. UM, AT THIS TIME WE, WE DON'T HAVE ANY MORE QUESTIONS, BUT AS WE CLOSE, GET READY TO ADJOURN THIS MEETING AGAIN, I JUST WANNA FOLLOW UP WITH, UH, COUNCILOR KINLAW AS AN AS THIS COMPANY, EISG. YOU HAVE NO WORK COLLECTIVELY AS A BODY, YOU'VE ALL WORKED INDIVIDUALLY NO. FOR DIFFERENT COMPANIES, BUT AS EISG, YOU'VE WORKED WITH OTHER LANDFILLS? YES. AND HAVE YOU HAVE A CONTRACT IN PLACE WITH OTHER LANDFILLS AS THIS COMPANY? AS EISG? WE HAVE CONTRACTS FOR PERMITTING, CONSTRUCTION, AND MANAGEMENT. AFTER THAT CONTRACT EXPIRES, WE HAND OVER TO THE OWNER AND WE GO TO THE NEXT ONE. NO, I, I UNDERSTAND YOUR PROCESS, BUT AS A TOTAL COMPANY, ES WHAT IS E-I-S-E-I-S-G? HAVE YOU HAD THIS TYPE OF PROJECT WITH OTHER CITIES, MUNICIPALITIES? I JUST WANT CLARITY ON THAT BECAUSE I WANT, WE WANT CLARITY. YEAH, BECAUSE IT SOUNDS LIKE YOU ENGINEERED WAS, I KNOW HE MISSED AND I KNOW HE'S WORKED FOR REPUBLIC AND HE SAID THAT SEVERAL TIMES HE'S WORKED FOR REPUBLIC AND YOU'VE GOT A NUMEROUS AMOUNT OF EXPERIENCE YEAH. AS YOU'VE STATED, BUT AS EISG, WHERE ELSE IN THE STATE OF TEXAS HAVE YOU GUYS WORKED COLLECTIVELY AS A BODY TO DO THE SAME PROPOSAL IN OTHER CITIES? AND WHAT ARE THOSE CITIES? SURE. IT'S A FAIR QUESTION. THE, UH, AS FAR AS ANY ADDITIONAL OTHER CITIES, UH, HERE AGAIN, UH, THE, MY CLIENT IS EISG. SO MY INTEREST IS IN THE LIMITED SCOPE OF PERMIT ASSOCIATED WITH THE LANDFILL. EISG ITSELF HAS PERFORMED WORK AT CITY OF WACO. PERFORMED WORK IS DIFFERENT THAN WHAT YOU'RE PROPOSING FOR US [01:40:01] PUBLIC PRIVATE PARTNERSHIP WITH THE CITY OF PORT ARTHUR TO CAPTURE THE INDUSTRIAL AND TAKE OVER THE LANDFILL. WHERE ELSE IN TEXAS HAS EISG DONE THIS? I UNDERSTAND, RIGHT? SO THE EISG COLLECTIVELY AND AS A COMPANY HAS NOT OPERATED A LANDFILL AS AN ENTITY. THAT'S WHAT I NEEDED TO KNOW. YES, MA'AM. THANK YOU FOR ANSWERING THE QUESTION. YOU'RE WELCOME. I APPRECIATE THAT. WE'RE GONNA HAVE MOTION. I'M GONNA, AT THIS TIME TAKE A MOTION FOR ADJOURNMENT. SO MOVED. I NEED SECOND. IT HAS BEEN MOVED. AND SECOND. ANY QUESTIONS? ALL IN FAVOR SAY AYE. AYE. THIS MEETING IS ADJOURNED AT 1142. THANKS. THANK YOU ALL. THANK Y'ALL. THANK YOU. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.