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[Council Government Performance & Financial Management Committee on November 14, 2023.]
IT IS 1:09 PM.AND I'LL CALL THIS MEETING OF THE GOVERNMENT PERFORMANCE OF FINANCIAL MANAGEMENT COMMITTEE TO ORDER.
WE WILL START OFF WITH THE MINUTES FROM OCTOBER 23RD, 2023.
>> I HAVE A MOTION AND A SECOND.
>> ANY OPPOSED? MOTION CARRIES.
AS PROMISED, WE ARE GOING TO START OFF WITH A BRIEFING MEMO, ITEM H, THE STATE FAIR OF TEXAS FINANCIAL REPORT FOR THE YEARS ENDING DECEMBER 31ST, 2022 AND 2021.
WE UNDERSTAND WE HAVE SOME FOLKS HERE TO ANSWER QUESTIONS IF THERE ARE ANY AND POSSIBLY AT LEAST ONE COUNCIL MEMBER WITH SOME QUESTIONS.
>> WELCOME AND THANKS FOR JOINING US TODAY.
JUST AS A REMINDER, IF THE MICS CAN BE A LITTLE TRICKY UP THERE, IF YOU'RE GOING TO BE SPEAKING AND ANSWERING YOUR QUESTION, JUST MAKE SURE YOU LET US KNOW WHO YOU ARE.
>> YOU'RE GOING TO PUSH THE BUTTON.
YOU SOMETIMES HAVE TO MOVE THE WHOLE UNIT A LITTLE BIT CLOSER, OR WE CAN'T ACTUALLY HEAR YOU.
SO I JUST WANT TO SAY, FIRST OF ALL, I LOVE THE FAIR.
HAVE APPRECIATED THE INFORMATION YOU SEND, AND I THINK WE GOT THIS MAYBE APRIL, MAY.
IT TOOK ME A WHILE TO READ IT, BUT I DID ACTUALLY READ IT, AND I JUST HAD A COUPLE OF QUESTIONS.
SO THANKS FOR COMING TO ANSWER THEM.
I THINK THERE'S FOUR QUESTIONS.
SO I THOUGHT MAYBE I'D START WITH THE EASIEST ONE.
A NUMBER OF THE QUESTIONS ARE ABOUT THE INVESTMENT ACCOUNTS, AND SO I'M WONDERING IF YOU CAN TELL US YOU HAVE A RESTRICTION ON THINGS THAT YOU CAN INVEST IN.
>> I'M LINDSEY CLARK, I'M THE CFO.
WE DO NOT HAVE RESTRICTIONS ON OUR INVESTMENTS PER SE, ALTHOUGH WE DO FOLLOW AN INVESTMENT POLICY LIKE MOST NOT-FOR-PROFITS.
>> OKAY. GREAT. SO ON PAGE 16, THERE'S A $1.5 MILLION LEASE PAYMENT, AND I'M ASSUMING THAT'S THE PAYMENT THAT GOES TO THE PARKS DEPARTMENT.
BUT THEN THEY GIVE THAT BACK TO YOU. IS THAT CORRECT?
>> WE DON'T GET THE LEASE BACK TO US, NO.
>> OKAY. WE'LL GO BACK AND ASK THE PARKS DEPARTMENT, BUT I THINK THEY'RE ALLOCATING THOSE DOLLARS BACK INTO FAIR PARK.
>> SORRY. MY UNDERSTANDING IS THAT THE RENT THAT WE PAY IS INTENDED TO BE INVESTED BACK WITHIN FAIR PARK, BUT IT DOESN'T COME BACK TO THE STATE FAIR ITSELF.
>> GOT IT. SO THEN MY NEXT QUESTION AND THIS IS REALLY WHAT STARTED THIS, IS ON PAGE 20.
IF WE COULD FLIP THERE, WHAT YOU'RE GOING TO SEE IS THAT THERE'S MORE THAN A $82 MILLION INVESTMENT ACCOUNT.
SO I'M WONDERING IF YOU CAN, SO YOU GOT TWO RESTRICTED ACCOUNTS, ONE FOR 11 MILLION, ONE FOR 359,000.
BUT THAT $82 MILLION INVESTMENT ACCOUNT, CAN YOU TELL US ABOUT THAT?
>> SO JUST FOR CLARITY, YOU'RE REFERENCING THE 82,914,000 FIGURE.
>> $82,792,172, THE TOTAL NUMBER FROM THE CASH AND CASH EQUIVALENTS AND SECURITIES.
SO THE THING ABOUT GAP AND THE PRONOUNCEMENTS THAT WE HAVE TO FOLLOW BY THE FASB IS THAT THEY CAN BE A LITTLE COUNTER-INTUITIVE.
SO THAT 95 MILLION ACTUALLY IS THE FIGURE THAT IS PROBABLY EASIEST TO TALK ABOUT.
BECAUSE AS YOU NOTE, IT DOES CONTAIN THINGS LIKE OUR RESTRICTED INVESTMENT FOR FAIR PARK IMPROVEMENTS.
BUT I THINK WHAT IT IS NOT SHOWING HERE THAT IS REALLY CRUCIAL TO UNDERSTAND IS A LOT OF OUR BOARD-DESIGNATED FUNDS THAT WOULD NEED TO BE TAKEN BACK OUT OF IT.
SO LOOKING BACK, FOR INSTANCE, AT THE STATEMENT OF FINANCIAL POSITION.
ON PAGE 3, YOU'LL SEE THAT WE'VE GOT A BOARD-DESIGNATED OPERATING RESERVE OF 19.4 MILLION, FUTURE FAIR PARK PROJECTS, WHICH IS A BOARD-DESIGNATED FUND FOR FUTURE CAPITAL PROJECTS WITHIN THE PARK, AND THEN OUR SCHOLARSHIP RESERVE FUND OF 2.7 MILLION.
SO IF YOU NET THOSE BACK OUT, THAT LEAVES US WITH CASH ON HAND OR INVESTMENTS OF ABOUT 56 MILLION.
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THEN THE OTHER PIECE, TOO, ABOUT ACCOUNTANCY, THAT'S TRICKY, IS THAT WE'RE ALWAYS LOOKING IN THE PAST.SO THE OTHER THING THAT YOU CAN'T SEE HERE IS OUR COMMITMENTS FOR 2023, SPECIFICALLY 4,360,000.
THAT IS OUR EXCESS REVENUE THAT WE ALLOCATE BACK TO THE FAIR PARK IMPROVEMENT FUND FOR WORKS WITHIN THE PARK.
AN ADDITIONAL 1.3 MILLION TO INCREASE OUR RESERVE BALANCE, AND THEN ANOTHER 9.7 MILLION FOR STATE FAIR CAPITAL AND PROJECTS WITHIN FAIR PARK.
SO THAT REALLY LEAVES US WITH CASH AND INVESTMENTS ON HAND OF ABOUT 40.6 MILLION.
>> SO WHEN I'M LOOKING AT PAGE 3 THAT YOU'RE POINTING OUT YOUR FINANCIAL POSITION STATEMENT, I MEAN, IT LITERALLY HAS RESTRICTED, RESTRICTED INVESTMENTS, AND IT GREW FROM 70 MILLION TO 82 MILLION.
I MEAN, YOU'RE STASHING AWAY A LOT OF DOLLARS INTO CAPITAL, AND AS A NON-PROFIT, YOUR MISSION IS TO PUT THEM BACK INTO INTO THE FAIR AND THAT INCLUDES THE BUILDINGS.
SO I'M TRYING TO UNDERSTAND, WE'RE COMMITTED THROUGH THE BYMER BILL FOR 300 MILLION TO IMPROVE FAIR PARK.
BUT I'M WONDERING WHY YOU HAVE SO MUCH MONEY THAT YOU'RE NOT INVESTING BACK INTO FAIR PARK.
>> SO AGAIN, WE ARE COMMITTED TO OUR EXCESS REVENUES, WHICH IS ESSENTIALLY WHAT ANY OTHER ENTITY WOULD CALL THEIR PROFIT.
WE DO TAKE THAT PROFIT AND TURN IT BACK INTO THE FAIR PARK IMPROVEMENT FUND.
IT GOES BACK INTO THE PARK EVERY YEAR.
SO THAT $4,360,000 NUMBER THAT I REFERENCED EARLIER IS WHAT WE GAVE TO THE CITY IN APRIL OF '23.
SO WE ARE DOING THAT EVERY YEAR.
LAST YEAR WE GAVE APPROXIMATELY 8.6 MILLION.
>> SO WHAT'S THE PLAN FOR THIS INVESTMENT FUND?
>> SO AGAIN, THIS ISN'T REALLY AN INVESTMENT FUND, IT'S A COLLECTION OF DIFFERENT INVESTMENT.
THIS IS SPECIFICALLY OPERATING LIQUIDITY, SHORT-TERM OPERATING CAPITAL.
>> I'VE NEVER SEEN SHORT-TERM CAPITAL BE CALLED INVESTMENTS.
>> COUNCIL MEMBER, I'M GINA NORRIS.
I'M FORMER BOARD CHAIR OF THE STATE OF TEXAS AND BEFORE THAT, I WAS A HEAD OF THE FINANCE AND AUDIT COMMITTEE.
WHILE I WAS BOARD CHAIR AND RUNNING UP TO BOARD CHAIR, PROBABLY THE BEST ADVICE I GOT FROM ANY OF MY BOARD MEMBERS WAS FROM LOUIS WINCKELMANN WHEN I ASKED HER WHAT SHOULD THE PRIORITIES, MY TOP THREE PRIORITIES BE FOR THE STATE FAIR OF TEXAS WHILE I'M BOARD CHAIR.
SHE SAID, "YOUR MOST IMPORTANT PRIORITY IS TO MAKE SURE THAT WE HAVE A FAIR." LITTLE DID WE KNOW THAT 2020 WAS GOING TO BE COVID YEAR AND WE WOULDN'T HAVE A FAIR.
BUT WE LEARNED DURING THAT YEAR EXACTLY WHAT IT COSTS TO KEEP OUR TEAM IN PLACE AND MAKE OUR OBLIGATIONS WITH RESPECT TO SCHOLARSHIPS, RENT TO THE CITY, AND ALL THE PAYMENTS ACROSS THE COMMUNITY.
WOULD COST US $20 MILLION IN 2020.
IT WAS A GOOD HARD NUMBER TO UNDERSTAND HOW MUCH WE NEED TO KEEP IN INVESTMENTS.
IT LOOKS LIKE A BIG NUMBER, BUT IT WAS VERY POSSIBLE THAT WE WERE GOING TO HAVE TO ALSO CANCEL THE 2021 FAIR BECAUSE OF COVID.
WHEN WE THINK ABOUT HOW MUCH INVESTMENTS DO WE NEED, WE NEED ENOUGH CASH TO MAKE SURE THAT IF WE HAVE TO CANCEL THE FAIR, NOT ONCE BUT TWICE, WE CAN STILL HAVE A STATE FAIR.
FROM THE WAY WE DO THE MATH IS BASED ON AN AGREEMENT THAT WE HAVE WITH THE CITY CALLED A MEMORANDUM OF UNDERSTANDING, WHICH TOOK A LOT OF THOUGHT AND TIME ON THE PART OF BOTH THE CITY, THE PARK DEPARTMENT, AND THE STATE FAIR TO COME TO AN AGREEMENT ABOUT.
BUT IN BIG PICTURE, WHAT WE'RE TRYING TO DO IS KEEP ENOUGH CASH THAT IF WE HAVE TO CANCEL NOT ONE BUT TWO FAIRS, WE CAN HAVE A THIRD.
IN THE BUSINESS, YOU KNOW THE BUSINESS WELL, IT'S LIKE HAVING A WEDDING IN YOUR FAMILY.
YOU PAY EVERYBODY TO COME AND IF SOMEBODY GETS COLD FEET AND THE NUPTIALS AREN'T TAKEN, YOU ARE OUT ALL THAT CASH.
THAT'S THE CONCEPT HERE OF HOW WE TRY TO THINK ABOUT HOW MUCH CASH DO WE NEED.
THE YEAR-END FINANCIALS ARE ALWAYS INFLATED IN TERMS OF CASH BECAUSE WE FINISHED THE FAIR IN THE THIRD WEEK OF OCTOBER,
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AND WE DON'T GET GOOD INVOICES FROM OUR LARGEST VENDORS UNTIL USUALLY THE LAST WEEK OF THE YEAR, WHICH IS NOT ENOUGH TIME FOR US TO RECONCILE THOSE AGAINST THE INVOICES WERE HOLDING AND GET THEM PAID AND GET THE CASH OFF OUR BALANCE SHEET.FOR INSTANCE, THE PAYMENTS WE MAKE TO THE DALLAS POLICE DEPARTMENT USUALLY DON'T HAPPEN UNTIL JANUARY.
AS MANY YEARS AS I'VE TRIED TO ENCOURAGE GETTING ALL OF THOSE BIG VENDORS PAID SO THAT THE CASH ISN'T SITTING THERE SO THAT WE DON'T HAVE THIS DISCUSSION, IT JUST DOESN'T HAPPEN.
THE INVOICING JUST DOESN'T HAPPEN THAT FAST.
BIG PICTURE IS WE'RE TRYING TO KEEP ENOUGH CASH SO THAT IF WE HAVE TO CANCEL NOT ONCE BUT EVEN TWICE, WE CAN HAVE A FAIR THE THIRD YEAR.
WE HAD A GOOD VISION, A GOOD PREVIEW OF THIS, IF YOU WILL, IN 2014, WHEN EBOLA BECAME AN ISSUE IN THE FIRST WEEK OF THE FAIR.
WE ALL WERE WONDERING IF WE'RE GOING TO HAVE TO CANCEL THAT FAIR? IT WAS THEN WHEN WE REALIZED WE HAD TO START HOLDING CASH RESERVES ADEQUATE TO GET US THROUGH AT LEAST ONE CANCELED FAIR AND PROBLEM.
THEN DURING COVID, WE REALIZED IT'S TWO POTENTIALLY CANCELED FAIRS.
THAT'S JUST BIG PICTURES POLICY.
>> I'M JUST GOING TO SAY YOU'VE GOT AUDITED FINANCIAL STATEMENTS FROM EY AND IT'S SHOWING $95 MILLION OF CASH RESERVES WITH THOSE INVESTMENTS, OF WHICH 82 MILLION PLUS IS INVESTMENTS, I THINK IT'S EXCESSIVE.
WHEN YOU LOOK AT FAIR PARK AND THE DESPERATE NEED FOR INVESTMENT, I CAN'T RECONCILE A NON-PROFIT CARRYING THAT KIND OF DOLLARS WHEN WE CAN'T EVEN WALK ON THE SIDEWALK WITHOUT TRIPPING.
I MEAN, I'M SORRY, A MILLION AND A HALF TO PAY TO PARKS FOR THEM TO INVEST INTO THAT LARGE OF A PARK IS NOTHING.
>> IN ADDITION TO THE RENT, WHICH I BELIEVE IS MIG AND SEVEN.
THAT HAS TO BE SPENT AT FAIR PARK ON OPERATIONS FOR FAIR PARK.
THEN HISTORICALLY, WE'VE SPENT AT LEAST A FOUR AND A HALF TO FIVE MILLION DOLLARS, THAT AFTER EACH FAIR, WHEN WE RUN THE MEMORANDUM OF UNDERSTANDING THAT CALCULATION, THAT NUMBER IS USUALLY FOUR TO FIVE MILLION DOLLARS.
THEN IN ADDITION, THE FAIR CAPITAL EXPENDITURES AT THE AT FAIR PARK THIS YEAR HAVE BEEN ALMOST $10 MILLION, JUST A LITTLE OVER NINE.
THOSE ARE THINGS THAT WE'VE TAKEN CRITICISM FOR BEFORE.
THOSE ARE THINGS THAT HELP THE FAIRS OPERATIONS GET BETTER.
IT'S THINGS LIKE LAYING FIBER SO THAT WE CAN ACTUALLY SELL COUPONS ELECTRONICALLY AND GET COUPON KIOSKS TO WORK.
IT'S THINGS THAT DON'T NECESSARILY HELP THE HISTORIC BUILDINGS, BUT HELP THE STATE FAIRS OPERATIONS.
BUT IT ALSO INCLUDED IN THAT HAS BEEN FIXING SEATS AND FIXING ROOFS.
IN ADDITION TO THE FOUR AND A HALF TO FIVE THAT WE GIVE TO THE PARK DEPARTMENT TO DECIDE WHAT THEY'RE GOING TO SPEND AT FAIR PARK, WE DID NINE AND A HALF MILLION DOLLARS OF CAPITAL PROJECTS AT FAIR PARK THIS YEAR.
THERE'S THE $1.7 MILLION OF RENT.
>> WELL, I'D ENCOURAGE YOUR BOARD TO USE THEIR FINANCIAL STEWARDSHIP TO RECOGNIZE THE NEED FOR INVESTMENT IN FAIR PARK AND THE PURPOSE FOR THE NON-PROFIT, WHICH IS, OF COURSE, TO PUT ON THE FAIR, BUT IT ALSO IS TO MAINTAIN THIS PROPERTY.
I THINK IT'S AN EYE-POPPING DOLLAR AMOUNT.
I HOPE THAT YOU WILL THINK ABOUT INVESTING MORE FULLY IN FAIR PARK.
>> IF I COULD ADD JUST ONE THING, MITCHELL GLEBE ARE PRESENT IN THE STATE FAIR.
AS GINA HAD MENTIONED, I JUST WANT TO MAKE SURE IT'S EMPHASIZED IN ADDITION TO OUR RENT, WHICH THAT YEAR WAS 1.5 MILLION, IT'S NOW 1.75 MILLION.
IN ADDITION TO THAT, OVER THE LAST NINE YEARS SINCE 2015, OUR TOTAL INVESTMENTS GIVEN BACK TO THE CITY FOR IMPROVEMENTS AT FAIR PARK HAD BEEN OVER $36 MILLION.
THOSE ARE DOLLARS THAT WE GIVE TO THE PARK DEPARTMENT AND WE GIVE THEM SOLE DISCRETION TO MAKE DECISIONS ON HOW THEY WANT TO UTILIZE THOSE DOLLARS.
>> WELL, I HAVE TALKED TO YOU REPEATEDLY ABOUT THE PAVEMENT AT FAIR PARK AND HOW BAD IT LOOKS AND HOW DANGEROUS IT IS AND NOT IN COMPLIANCE WITH ADA AND DIFFICULT FOR PEOPLE WITH MOBILITY ISSUES.
I CAN'T UNDERSTAND HOW THAT'S NOT BEEN PRIORITIZED.
>> EXCUSE ME. NO, I THINK FIRST OF ALL,
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THERE'S A NUMBER OF IMPROVEMENTS THAT THE STATE FAIR MAKES WITHIN FAIR PARK THAT BENEFIT THE FAIR.BUT THESE OTHER IMPROVEMENTS THAT THE TYPES OF THINGS THAT YOU'RE TALKING ABOUT ARE LIKELY SOMETHING THAT SHOULD PROBABLY COME OUT OF THE DOLLARS THAT ARE PROVIDED TO THE CITY TO ACTUALLY FAIR PARK FIRST AND THE NOVG TO MAKE THE DECISIONS ON HOW BEST TO SPEND THOSE TO IMPROVE THE PARK WHEREVER THEIR PRIORITIES MIGHT BE.
AT LEAST 36 MILLION HAS HAVE COME FROM US OVER THE LAST NINE YEARS TO MAKE THOSE DECISIONS. IT'S A LOT.
THERE'S SO MANY NEEDS OUT THERE, SO THEY HAVE TO MAKE DECISIONS, LIKE TOUGH DECISIONS ON WHERE TO SPEND IT.
A LOT OF TIMES IT'S BROUGHT UPON BY EMERGENCY SITUATIONS.
THERE COULD BE BUILDINGS THAT ARE FLOODING AND THEY HAVE TO MAKE DECISIONS ON.
DOING EMERGENCY WORK THERE OR THEY HAVE TO REPLACE OUR ROOF THAT HAS GONE OUT.
THESE TYPES OF THINGS HAPPEN ALL THE TIME.
WE WORKED WITH THE CITY OR WITH OVG AND FAIR PARK FIRST, IF THERE'S AN ISSUE THAT COMES UP, AND THEY WANT TO REALLOCATE THOSE FUNDS FROM ONE PROJECT THAT THEY COMMITTED TO TO ANOTHER.
AS FAR AS WE'RE CONCERNED, WE'LL ALWAYS COMPLY WITH THAT.
>> THANK YOU, CHAIRMAN MARINA.
>> THANK YOU, CHAIR. THANK YOU ALL FOR THE PRESENTATION.
GO BACK A LONG WAY WITH FOLKS OVER AT FAIR PARK AT THE STATE FAIR.
I JUST WANT TO SAY WHAT I FEEL HAS HAPPENED IS A STRONGER RELATIONSHIP, A MORE OVERSIGHT FROM PARK BOARD AND COUNCIL, SO THANK YOU FOR GETTING TO WHERE WE ARE TODAY.
I AM CURIOUS WHEN IT CAME TO COVID, IF YOU-ALL RECEIVED ANY CARES ACT OR ANY PAYROLL PROTECTION AND HOW MANY EMPLOYEES DO YOU CURRENTLY HAVE, FULL-TIME NOT CONTRACTED.
>> YES, WE DID. WE RECEIVED A PPP LOAN THAT WAS FULLY FORGIVEN.
>> THAT COVERED HOW MANY EMPLOYEES?
>> AT THE TIME, WE PROBABLY HAD 48-50 AT THE TIME.
>> FULL-TIME EMPLOYEES AND THAT YEAR, THAT AMOUNT COVERED 1,758 EMPLOYEES.
>> IF I COULD DO THE FOLLOWING YEAR, THE PPP LOAN, I BELIEVE WAS SPRING OF 2021.
WAS LAST ROUND OF PPP AND THE BOARD FINALLY AGREED WE'LL APPLY FOR IT.
WE RECEIVE THOSE FUNDS, WE WERE ABLE TO HAVE A FEAR THAT YEAR AND THE FOLLOWING YEAR, WE COMMITTED OVER $8 MILLION TO THE CITY OF DALLAS FOR FAIR PARK IMPROVEMENTS.
SO IN 2021, YOU DIDN'T GET ANY CONTRIBUTION FROM US BECAUSE WE HADN'T HAD A FAIR THE PREVIOUS YEAR, BUT IN 2022 AS A RESULT OF THE 2021 FAIR AND FRANKLY, BECAUSE WE HAD THAT EXCESS CASH FROM THE PPP LOAN, WE MADE AN $8 MILLION CONTRIBUTION TO THE CITY.
SO WE CAUGHT UP FOR THOSE TWO YEARS IN EARLY 2022 WITH THE CONTRIBUTION TO THE CITY FOR FAIR PARK IMPROVEMENTS.
>> AND YOU SAID THE THE LEASE RIGHT NOW IS ABOUT 1.75 MILLION.
AND WHEN DO YOU GUYS INVEST BACK INTO FAIR PARK, DOES THAT IS THAT INVESTMENT GO AGAINST THAT 1.7 LEASE?
>> NO, IT'S AN ADDITION TO IT.
>> AN ADDITION TO IT, THAT'S GREAT.
GOOD. THAT'S I THINK ALL I HAVE. THANK YOU.
>> I JUST WANT TO POINT OUT TOO, BECAUSE IT TOOK ME A WHILE TO FIGURE THIS, TO REALLY FOLLOW THIS CLOSELY, BUT IN OUR INCOME STATEMENT, WHEN YOU SEE MAJOR MAINTENANCE EXPENSE ON THE EXPENSES ON OUR INCOME STATEMENT, THOSE ARE FUNDS THAT WERE SPENDING INSIDE FAIR PARK THAT WE HAVE TO EXPENSE.
THEY'RE NOT CAPITAL IMPROVEMENTS BECAUSE THEY'RE BEING SPENT ON FIXED ASSETS THAT THE CITY OWNS.
SO THAT WHEN YOU THINK ABOUT HOW MUCH IS COMING BACK INTO FAIR PARK FROM THE STATE FAIR OF TEXAS, ALWAYS INCLUDE THAT MAJOR MAINTENANCE WHICH HAS TO BE EXPENSED IN THE SAME YEAR.
AND THEN IN ADDITION TO THAT, WE DO THE CONTRIBUTION TO THE CITY WHICH ACCRUES IN FAIR PARK IMPROVEMENTS THERE AT FISCAL YEAR-END 2022, DIDN'T WE HAVE $11.5 MILLION ON OUR BALANCE SHEET? THAT WAS AN ACCRUAL OF CONTRIBUTIONS WE'VE MADE TO THE CITY OF DALLAS FOR FAIR PARK IMPROVEMENTS THAT HAD NOT YET BEEN SPENT.
SO THOSE ARE IN OUR VESTMENTS WAITING AND MONEY MARKET ACCOUNTS, NOT BONDS, NOT STOCKS, BUT THOSE ARE ON THE BALANCE SHEET WENT INTO FUND FAIR PARK IMPROVEMENTS THAT THE PARK BOARD DIRECTS.
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>> THANK YOU. I APPRECIATE YOU GUYS COMING DOWN TODAY.
NEXT, I WAS GOING TO HOPEFULLY RELEASE THEM IN THE MEMO, FOLKS, BUT I THINK WE'VE GOT QUESTIONS ABOUT EVERYTHING, SO WE'RE JUST GONNA GO STRAIGHT DOWN THE LIST.
ITEM A, DEVELOPMENT SERVICES MONTHLY UPDATE AND PROCESS MAP IMPROVEMENTS FOR OCTOBER 2023.
>> SO GOOD AFTERNOON, CHAIRMAN AND COMMITTEE MEMBERS.
MY NAME IS ANDREW ESPINOSA, DEVELOPMENT SERVICES DIRECTOR.
WITH ME TODAY I HAVE ASSISTANT DIRECTOR SAM ISCANDOR TO BRING YOU A BRIEF UPDATE TO OUR LATEST DEVELOPER GUIDE UPDATES.
AT THE LAST COUPLE OF SESSIONS, CHAIRMAN, YOU ASKED US AND COMMISSIONED US TO TAKE A GOOD HARD LOOK AT THE WORKFLOW AND TO TRY TO SIMPLIFY THAT PROCESS AND MAKE IT A LOT EASIER FOR OUR CUSTOMERS TO UNDERSTAND AND NAVIGATE.
AND SO I'M HAPPY TO REPORT THAT WE'RE STILL WORKING ON THAT UPDATE.
WE SHOULD HAVE A GOOD FINAL DRAFT TO OUR CITY MANAGEMENT TEAM BY THE END OF THIS MONTH AND THEN TRY TO INCORPORATE THEIR RECOMMENDATIONS AND SUGGESTIONS AND WE'LL BE HAPPY TO SHARE IT WITH YOU AS WELL.
>> THANK YOU. I HAVE A COUPLE OF QUESTIONS, ONE ON THE MOVE TO THE NEW FACILITY, WHAT'S THE HOLDUP IN GETTING EVERYBODY OVER THERE?
>> SO COUNCIL MEMBER, OUR BOND OFFICE HAS BEEN DOING A FANTASTIC JOB OF WORKING WITH US ON THE REMODEL.
AS YOU KNOW, WE HAD PLANS TO UPDATE FIVE FLOORS FOR DEVELOPMENT SERVICES.
I BELIEVE WE'RE ALMOST THERE, BUT AS FAR AS THE ACTUAL MOVE-IN DATE AND ANTICIPATED TIMELINE, I WOULD HAVE TO DEFER TO THEM.
>> MY ONLY QUESTION ON THE ITEM G IS ON THE UPDATES ON GETTING THE NEW FACILITY READY FOR FOR IT PURPOSES, THAT'S ITEM 43 AND THE TECHNOLOGY UPDATE, I THINK IT'S RELEVANT TO THIS AND WE CAN KNOCK OUT YOUR PORTION NOW BILL, IF YOU WANT.
HOW ARE WE DOING ON OUR IT READINESS AND THE NEW BUILDING?
BILLS ALINSKY, CIO FOR THE CITY.
WE'RE ACTUALLY IN THE KIND OF THE FINAL RUN THROUGH MY UNDERSTANDING FROM THE TEAM TODAY IS THAT FLOOR FIVE IS ACTUALLY COMPLETED.
THE LAST TOUCHES THAT WE HAVE ON THE OTHER FOUR FLOORS HAVE TO DO WITH THE REMAINING DROPS WHERE ALL OF THE FINAL WIRING GOES, AND SO I CAN GET YOU A COMPLETE UPDATE OF EXACTLY WHEN EACH OF THOSE FLOORS WILL BE DONE, BUT WE'RE PRETTY CLOSE TO COMPLETE.
>> THANK YOU. SO THEN IS THERE ANYTHING ELSE THAT THAT'S REALLY HOLDING IT UP, GETTING EVERYBODY OVER THERE? IS THERE A SPECIFIC ISSUE?
>> YES. CHAIRMAN, THANK YOU FOR THE QUESTION.
SO I BELIEVE THAT THE ONLY PENDING ISSUES OR FINAL BUTTONING UPDATES OUR IT TO MAKE SURE IT'S READY.
I BELIEVE THERE WERE SOME COUNTERTOPS THAT WE'RE WAITING ON, BUT I'M ASSURED THAT THAT'S COMING IN HERE SHORTLY.
AND THEN THE ONE PIECE IS I KNOW THERE'S SOME ONGOING REPAIRS TO OUR ELEVATORS, BUT AGAIN, I'LL DEFER TO OUR BOND OFFICE FOR SPECIFIC UPDATES AND TIMELINES.
>> THEN I'LL SAVE THOSE QUESTIONS FOR WHEN WE HAVE ECONOMIC DEVELOPMENT, UNLESS WE HAVE A BOND OFFICE PERSON READILY AVAILABLE.
I'M GUESSING WE DON'T, SO COMMITTEE MEMBERS? YES, VICE CHAIR BLACKMON.
>> THANK YOU FOR COMING AND BEING HERE.
YOU'RE TALKING ABOUT YOUR PROCESS MAP.
CAN YOU, AND YOU'RE GOING TO COME BACK NEXT MONTH.
WHAT STEPS ARE YOU TAKING IN THIS INTERIM TIME TO MAKE SURE THAT YOU'RE HITTING THE RIGHT POINTS IN WHICH TO EITHER ELIMINATE OR EXPAND ON OR MINIMIZE? IN OTHER WORDS, IS THERE ANYBODY HELPING YOU THROUGH THIS OR IS IT AN INTERNAL?
SO INTERNALLY, WE'RE UPDATING OUR DALLAS DEVELOPER GUIDE.
THE LAST UPDATE WAS DONE IN 2021, AND IF YOU'VE BEEN THROUGH IT, IT'S A VERY HARD READ BECAUSE IT'S VERY TECHNICAL.
[LAUGHTER] THERE ARE VERY ARCHAIC FLOWCHARTS AS THE CHAIRMAN HAS POINTED OUT.
OUR GOAL IS TO NOT ONLY UPDATE IT, BUT MAKE IT USER-FRIENDLY.
AND THEN ALSO DEVELOPED WHAT WE CALL A QUICK GUIDE.
SO THERE'LL BE TWO GUIDES COMING OUT, ONE FOR THOSE FOLKS THAT REALLY WANT TO DO AN IN-DEPTH REVIEW OF OUR PROCESSES, AND FOR THOSE FOLKS THAT PERHAPS WERE TRYING TO INCENTIVIZE TO COME TO THE CITY OF DALLAS.
IN ADDITION TO THAT, ONCE WE PROVIDE ALL THOSE THOSE UPDATES AND GET IT TO A REALLY GOOD SPOT, WE'RE GOING TO BE INCLUSIVE AND INCLUDE THE OTHER DEPARTMENTS LIKE FIREWATER, PUD, TRANSPORTATION TO MAKE SURE THAT THEIR COMPONENTS ARE ACTUALLY ADDED IN THERE AND THAT IT MAKES FULL SENSE.
>> AND IT'S NOT JUST SOMEBODY SITTING IN THERE AND EDITING THAT YOU'RE GOING TO BE WORKING WITH VERY, JUST MAKING SURE IT'S PRETTY COMPREHENSIVE
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AND EXPANDS ON A QUITE A FEW DEPARTMENTS. THANK YOU.>> AND THEN I JUST GOT A NOTE HERE, CHAIRMAN, THAT WE SHOULD BE MOVING IN THIS MONTH AND THAT'S THE TARGET GOAL.
>> LET'S DO A RIBBON CUTTING PARTY. [LAUGHTER].
NEXT, I WANT TO BOUNCE DOWN TO ITEM D SO WE CAN GET DR. PEREZ OUT OF HERE.
AND SINCE WE'RE ALREADY TALKING ABOUT REAL ESTATE, I DON'T THINK YOU GUYS NEED TO STAY, BUT YOU'RE WELCOME TO IF YOU JUST LIKE THIS COMMITTEE, WANT TO HANG OUT WITH US. WELCOME.
WE HAD ADDED ITEM D AS A DISCUSSION ITEM THAT'S GOING TO BE ONGOING.
I THINK THE COMMITTEE KNOWS BY NOW OF CITYWIDE REAL ESTATE ISSUES AND OPPORTUNITIES.
JUST FOR MY COLLEAGUES TO CATCH UP IF YOU WEREN'T ON THE PARKS ENVIRONMENTAL CHAIRMAN STEWART'S COMMITTEE.
WE RECENTLY LEARNED THAT THERE IS ANOTHER GROUP THAT IS ALSO LOOKING AT THE CITY'S REAL ESTATE AND THAT IS THE TRUST FOR PUBLIC LAND, ALONG WITH THE PARKS DEPARTMENT, I GUESS, WHO'S ANALYZING THE CITY'S REAL ESTATE TO ADDRESS THE MAYOR'S GREENING INITIATIVES.
THAT IS A THIRD GROUP NOW, IN ADDITION TO THE PENSION GROUP, AND THEN THE ECONOMIC DEVELOPMENT CORPORATION THAT ARE ALL LOOKING AT THE CITY'S REAL ESTATE.
I WANTED TO BRING DR. PEREZ HERE TO JUST TALK TO US AND GIVE US COMFORT THAT THERE'S A STRATEGIC VISION, AND TELL US WHAT'S GOING ON FROM THE CITYWIDE PERSPECTIVE.
>> THANK YOU, CHAIR ROBERT PEREZ, ASSISTANT CITY MANAGER.
YES. WE ARE AWARE THAT THERE ARE MULTIPLE GROUPS LOOKING AT THE CITY'S REAL ESTATE.
WE WILL DEFINITELY TAKE INPUT FROM EACH GROUP THAT IS EVALUATING THE PARCELS, AS WELL AS OUR OFFICE SPACE.
ULTIMATELY, AS WE DISCUSSED LAST MONTH, WE DO HAVE A GOVERNANCE COMMITTEE MADE UP OF THE EXECUTIVE LEADERS, THE CITY MANAGERS, DEPUTY CITY MANAGERS, AND ULTIMATELY OUR CITY MANAGER LOOKING AT AT OUR LAND USE, LOOKING AT OUR OFFICE SPACE.
AS I MENTIONED LAST MONTH, THAT WE ARE KICKING OFF OUR ANNUAL REVIEW OF CITY PROPERTY, AS WELL AS OUR OFFICE SPACE, OUR BUILDINGS, FACILITY USE.
I WILL BE KICKING THAT OFF HERE PROBABLY IN THE NEXT 30 TO 45 DAYS.
THIS TIME AROUND AS MENTIONED, OUR FEEDBACK FROM OUR DIRECTORS WILL BE A LOT MORE SCRUTINIZED.
TYPICALLY, IF LAND IS BEING HELD, IT'LL BE NOTED THAT IT'S BEEN HELD FOR A FUTURE PROJECT.
THIS TIME AROUND WE WANT TO HEAR DETAILS LIKE, WHAT'S THE FIVE-YEAR PLAN? IS IT A FUNDED PROJECT? WHAT IS THE PROJECT? THINGS OF THAT NATURE.
ADDITIONALLY, WE'LL BE LOOKING AT OUR LEASES TO SEE IF THERE'S OPPORTUNITIES TO MAYBE CONSOLIDATE SOME OF OUR LEASE SPACE INTO EXISTING CITY FACILITIES SO THAT THEY MAY HAVE SOME VACANT SPACE.
I CAN TELL YOU THAT THAT WILL BE SCRUTINIZED IN THAT PLAN A LOT MORE HERE IN THEN NEXT SEVERAL MONTHS, WHICH WILL ULTIMATELY LEAD TO PROBABLY TWO TO THREE YEAR TIME FRAME AS FAR AS CREATING A STRATEGIC PLAN AND STARTING TO EXECUTE IT.
>> THIS IS GREAT NEWS TO HEAR.
I'M GLAD TO HEAR THAT YOU'RE DOING MORE OF A DEEP DIVE ON EACH DEPARTMENT, AND THE FACT THAT AS OPPOSED TO REACTIONARY, YOU'RE BEING PROACTIVE.
THE FACT THAT WE'RE ALSO LOOKING AT LEASES AND THAT THIS EXECUTIVE GOVERNING GROUP IS DOING THAT IS GREAT.
I GUESS, ON THE TWO TO THREE YEAR TIME FRAME FOR A STRATEGIC PLAN, I THINK THAT SOUNDS LIKE A REASONABLE TIME FRAME.
ARE WE LOOKING TO ANY OUTSIDE HELP TO HELP US BUILD THAT STRATEGIC PLAN OR WAS THAT BEING BUILT ALL INTERNALLY? HOW ARE YOU GUYS DOING THAT?
>> AT THIS POINT, SURE, IT'S INTERNAL.
WE'LL PROBABLY BE HERE IN THE NEXT FEW MONTHS TO DETERMINE IF WE NEED OUTSIDE HELP FOR IT.
EVERYBODY HAS A DIFFERENT OPINION, BUT IT WILL DEFINITELY BE DISCUSSING THAT AND COMING UP WITH A PLAN PROBABLY HERE IN THE NEXT FEW MONTHS.
>> MY CONCERN THAT I BROUGHT UP LAST MONTH THAT STILL CONTINUES IS, PERSONALLY I TRUST YOU AND I WOULD SAY MOST OF
[00:30:03]
OUR EXECUTIVE LEADERS TO HAVE A STRATEGIC VISION TO PUSH IT OUT ON THIS ISSUE.HOWEVER, IF YOU LEAVE NEXT YEAR, WE GET SOMEBODY NEW FROM WHO KNOWS WHERE, I JUST DON'T HAVE COMFORT LEVEL THAT IT'S GOING TO TRANSITION BECAUSE WE DON'T SEE THAT HAPPENING A LOT OF THE TIMES.
I REALLY THINK THIS SHOULD BE A PLAN IN PLACE, A PROCEDURE THAT'S CODIFIED ON HOW YOU GUYS HANDLE REAL ESTATE.
I'M NOT GOING TO TELL YOU HOW TO STRUCTURE BUT, THERE NEEDS TO BE SOMETHING THAT LIVES ON PAST YOU, PAST US.
THAT IS A VISION, AND I THINK IT SHOULD BE DEVELOPED IN CONJUNCTION WITH THE TAXPAYERS AND THE PRIVATE INDUSTRY TOO NOT JUST INTERNAL CITY STAFF.
THIS MORNING WE HAD A BRIEFING IN CHAIRMAN MORENO'S COMMITTEE ON HOUSING AND ONE OF THE CONCERNS THAT CAME UP THAT I HAD AND I THINK OTHERS SHARED WAS THAT THERE'S NO GOAL THAT WE HAVE.
THERE'S NO NUMBER THAT WE'RE WORKING TOWARDS IN OUR HOUSING GAP.
CHILD POVERTY ACTION LAB JUST TOLD US WHAT WE NEED TO BUILD, HOW MANY WE NEED.
OUR HOUSING POLICY 2020-2033 DOESN'T HAVE A VISION IN IT FOR WHAT WE NEED TO BUILD.
I FEEL LIKE THIS STRATEGIC GROUP SHOULD BE TAKING THE NUMBER WE NEED AND SAYING, HERE'S OUR AVAILABLE REAL ESTATE, HOW MUCH CAN WE USE TO FILL THAT GAP? THAT YOU DON'T EVEN HAVE A NUMBER BECAUSE THAT PIECE IS GONE AND WE DON'T HAVE THE STRATEGIC PLAN IN PLACE FOR THIS.
THIS IS GAPS I'M PUTTING OUT THERE.
I DON'T HAVE A SOLUTION TODAY THAT'S WHY IT'S STAYING ON HERE EVERY MONTH.
HOPEFULLY WE'LL CONTINUE TO TONE THIS OUT.
>> THANK YOU, CHAIR. I'M EXCITED TO SEE THIS, THAT I UNDERSTAND THE TIME OF TWO YEARS TO GET THE WHOLE CITYWIDE ASSETS.
BUT THERE ARE SOME PUZZLES THAT WE'VE ALREADY IDENTIFIED THAT I DON'T WANT TO WAIT TWO YEARS IN ORDER TO PROCEED.
ESPECIALLY, WHEN WE HAVE OUTSIDE EXPERTS THAT ARE WILLING TO HELP US.
GOING TO CHAIRMANS WEST, WHAT'S THE PROTOCOL GOING TO BE? HOW ARE WE GOING TO MOVE FORWARD WITH A PROJECT THAT I THINK EVERYONE AT THE CITY HALL AGREES THAT WE SHOULD MOVE FORWARD WITH.
WHAT PROCEDURE THAT WE NEED TO LAY OUT? HOW DO WE ENSURE THAT, YES, THIS IS THE PROJECT THAT WE'VE IDENTIFIED? THE FIRST PROJECT THAT WE PARTICULARLY WANT TO MODEL AFTER.
HELP ME UNDERSTAND HOW TO MOVE FORWARD WITH THE PROJECT.
>> THE CITY MANAGER HAS SHARED WITH US SOME THOUGHTS, SOME THINGS THAT HE DID IN TACOMA AND ACTUALLY LAYS OUT THAT PROCESS.
AS I MENTIONED IN THE LAST MEETING, WE DO HAVE AN ADMINISTRATIVE DIRECTIVE.
I BELIEVE IT'S 4.5 THAT DIRECTS US EVERY YEAR TO LOOK AT OUR LAND AND TO LOOK AT OUR SPACE.
WHAT I ENVISION, SIR, IS THAT THE NEAR AND FOR THE LONG TERM INCORPORATING SOME BEST PRACTICES THAT ARE UTILIZED IN OTHER CITIES INTO THAT ADMINISTRATIVE DIRECTIVE TO HOPEFULLY ADDRESS THE CHAIRS CONCERN IN THE EVENT THAT I LEAVE NEXT YEAR.
THAT IS THE ADMINISTRATIVE SIDE.
WE DO KNOW THERE ARE GOING TO BE SOME QUICK HITS, IF YOU WILL.
THE QUESTION WAS ASKED AS WHEN DEVELOPMENT SERVICES AND MOVING OUT OF AUERBACH MARKET AND INTO THE NEW FACILITY.
OUR GOAL IS TO HAVE EVERYBODY OUT OUT OF AUERBACH BY THE MIDDLE OF NEXT YEAR, SO WE KNOW THAT IT'S GOING TO BE A GOOD PROJECT FOR US TO LOOK AT.
WE'RE WORKING ACROSS THE DEPARTMENTS TO IDENTIFY OTHER PROJECTS THAT COULD POTENTIALLY BE PROGRAMMED IN THE BOND.
WHEN I SAY THAT, WHAT WE'VE TALKED ABOUT, REDEVELOPING FIRE STATIONS WITH HOUSING OR REDEVELOPING REC CENTERS OR SOMETHING WITH HOUSING, SOME MULTI-USE PROJECT.
IN THE INTERIM OR IN THE VERY NEAR TERM, IT'S LOOKING AT THOSE PROJECTS THAT MAKE IT INTO THE BOND TO ACTUALLY HAVE FUNDS TO LEVERAGE A PUBLIC-PRIVATE PARTNERSHIP.
AUERBACH IS DEFINITELY GOING TO BE ONE OF THOSE PROJECTS WE'LL BE LOOKING AT ALONG WITH OTHER PRIORITIES ACROSS THE VARIOUS DEPARTMENTS.
>> THANK YOU. WITH THAT, KNOWING THAT THERE'S SOME POTENTIAL PROJECTS IN THE PIPELINE THAT CAN GIVE US A LOT MORE ON OUR RETURN, SHOULD WE BE LOOKING AT THE BOND FOR POTENTIAL DOLLAR FOR DESIGN AND IMPLEMENTATION OF THAT PROJECT?
[00:35:04]
DO WE NEED TO SET SOMETHING ASIDE AND WITH THIS BOND IN ORDER TO MOVE FORWARD?>> I THINK THAT THERE'S A CHALLENGE COUNCILMAN WITH DOING THAT FOR THE FACT THAT ONCE WE START LAYING OUT SPECIFIC PROJECTS LIKE THAT, WE START SPECULATING ON REAL ESTATE.
WHAT WE ARE ENVISIONING DOING IS PUTTING DOLLARS INTO ECONOMIC DEVELOPMENT.
IT'S A GENERIC ECONOMIC DEVELOPMENT SO THAT WAY AS THOSE PROJECTS OR THOSE OPPORTUNITIES THAT BECOME AVAILABLE, IT'S NOT TIED TO ANY ONE SECTION.
THAT'S PROBABLY THE VISION AT THIS POINT, IS AS WE ARE CRAFTING THE NEXT BOND, THAT WE PUT SOME DOLLARS IN [INAUDIBLE] SO THAT WAY WE CAN UTILIZE THAT TO LEVERAGE WHETHER IT'D BE FOR HOUSING, WHETHER IT BE FOR A SPECIFIC INDUSTRY.
WE HAVE THOSE DOLLARS TO LEVERAGE PARTNERSHIPS.
>> THANK YOU. I AGREE WITH THAT.
MY CONCERN WOULD IT BE THOUGH RIGHT NOW THE WAY THAT THE BOND LOOKS, IT'S FOCUSED ON SOME GEOGRAPHICAL AREAS AND US NOT BEING ABLE TO UTILIZE THOSE IN A CITYWIDE PROJECTS.
>> I CERTAINLY GET THAT BUT THEN YOU ALSO HAVE THE FLIP SIDE WE JUST TALKED ABOUT SOME OF THE AREAS THAT WERE IN THE PUBLIC HOUSING, THE 2033 PLAN THAT WILL LAY OUT SPECIFIC AREAS THAT WOULD BE GOOD FOR HOUSING OR FOR OTHER PRIORITIES.
IT'S REALLY A MATTER OF TAKING THE PLANS THAT ARE BEING DEVELOPED HERE OVER THE NEXT SEVERAL MONTHS, AND THE EXISTING PLANTS AS WELL TO LEVERAGE OUR DOLLARS IN THE BEST USE IN THE BEST AREA.
>> THANK YOU. THANK YOU, MR. CHAIR.
>> THANK YOU. GO WITH A VICE CHAIR NEXT.
>> THANK YOU. ONE QUICK ADDITION IS THAT BECAUSE WE'RE RESTRICTED IN OUR LAND AND HOW WE CAN SELL IT.
WE WERE GOING THROUGH THE CHARTER RIGHT NOW.
NOW MAY BE THE OPPORTUNITY TO LOOK AT WHAT THE CHARTER IS REGARDING TO LAND, TO GET RID OF SO BECAUSE I WAS TALKING TO SOME FOLKS AND THERE'S SOME STRINGS ATTACHED PER THE CHARTER, AND WE MAY NEED TO UNDO THOSE IF WE'RE GOING TO BE DISPOSING OFF CITY LAND, AND SO WE DON'T WANT OUR OWN PROCESSES TO GET IN THE WAY OF THAT.
THEN SECOND, YOU MIGHT WANT TO LOOK AT PHASING THIS IN JUST BECAUSE I THINK AT FIRST STRING, A SECOND RING, AND A THIRD RING BECAUSE MY UNDERSTANDING, SOME OF THE PARKLAND CANNOT BE USED, BUT OTHER THAN A SIMPLE WALKING PATH, SO WHICH SO IT'S NOT GOING TO AFFECT BUILDING HOUSES BECAUSE IT WOULDN'T BE ABLE TO BE SOLD OFF ANYWAY.
MAYBE LOOKING AT SOME OF THOSE LAND THAT IS IN A HIGH OPPORTUNITY AREA FOR HIGH DEVELOPMENT AND GETTING THAT ON THE BOOKS QUICKER, FASTER OFF THE BOOKS, AND MOVING THAT, AND THEN YOU CAN WORK ON THE REST OF THE PORTFOLIO.
>> THANK YOU, MA'AM. DEFINITELY TAKE THAT INTO CONSIDERATION.
>> THANK YOU. VICE CHAIR. CHAIRWOMAN MENDELSSOHN.
>> THANK YOU. OVER THE YEARS WE HAVE TALKED ABOUT THE SPREADSHEET AND DATABASE HAVE ALL THIS LAND SO I'M HOPING THAT UNLIKE WHAT'S HAPPENED SO FAR THAT AS YOU ASKED FOR THIS DEEPER DIVE FROM THE DEPARTMENT HEADS, THAT THEY WILL FILL OUT ADDITIONAL COLUMNS SO IT'LL DESIGNATE WHICH DEPARTMENT IT IS.
IT'LL DESIGNATE WHAT PROGRAM THEY'RE SAVING THE LAND FOR.
IF IT'S WATER, THEY NEED A PUMP, WHATEVER IT IS, SO THAT WE CAN LOOK AT THAT AS WELL.
HONESTLY, WE'RE TOO IN THE WEEDS ON THIS TOPIC, BUT WE'VE BEEN BROUGHT TO THIS TOPIC BECAUSE IT REALLY HASN'T BEEN ADDRESSED, AND WE ARE SITTING ON WAY TOO MANY UNDER-PERFORMING ASSETS THAT WE NEED.
WE NEED TO PAY OUR PENSION, WE NEED TO DEVELOP HOUSING AND WE NEED FOR PARKS.
YOU'VE HEARD FROM MANY OF THE COUNCIL MEMBERS THOSE THREE PRIORITIES.
I WILL SAY IN NO PARTICULAR ORDER, BUT ALL NECESSARY AND I'M WONDERING, AND I THINK THAT COUNCIL BLACKMAN WAS SPEAKING TO THIS, THAT PERHAPS INSTEAD OF LOOKING AT THE ENTIRE PORTFOLIO ALL AT ONCE, YOU SAY THERE'S SOME LOW-HANGING FRUIT HERE, YOU'RE EXITING THE AUERBACH BUILDING.
WELL, WHAT ARE YOU DOING WITH THAT? WE'VE GOT THE AUTO POUND, WHICH IS BEING DIVIDED OUT.
WHAT ARE YOU GOING TO DO WITH THAT LAND? THERE'S SOME LOW-HANGING FRUIT THAT WE COULD IMMEDIATELY SELL OR LEASE TO TAKE CARE OF SOME OF THESE OTHER ISSUES.
I'M HOPING THAT A PLAN DOESN'T TAKE TWO YEARS, BUT IS MAYBE A RETREAT YOU HAVE THAT YOU GUYS SIT DOWN WITH THIS MORE DETAILED SPREADSHEET AND SAY, OKAY, HERE'S OUR LOW-HANGING FRUIT OF 10 PROPERTIES WE KNOW WE CAN SELL.
[00:40:01]
LET'S GO GET APPRAISALS, LET'S FIGURE OUT HOW MUCH WE'RE TALKING ABOUT, AND THEN LET'S HAVE A REAL SERIOUS PENSION CONVERSATION.BUT BOTH FOR ACQUISITION AND DISPOSITION, IF THERE'S POLICIES THAT ARE GOING TO INHIBIT ACTION, WE NEED TO ADDRESS THOSE.
IF THEY'RE IN THE CHARTER, WHICH I DON'T RECALL THAT, BUT IF THEY ARE, AND I TRUST THAT THEY ARE, THAT SHE WOULD SAY THAT PLEASE MAKE SURE YOU ALERT US SO THAT WE CAN COMPLETE THESE TRANSACTIONS. THANK YOU.
>> THANK YOU. COUNCILMAN WILLIS, DID YOU HAVE ANYTHING?
>> HI, THANK YOU FOR LETTING ME JOIN IN ON THIS VERY IMPORTANT SUBJECT.
WE'VE HEARD A COUPLE OF THINGS SUGGESTED, AND I WOULD DEFINITELY AGREE WITH, INSTEAD OF LOOKING AT THE WHOLE BLOCK, IT'S JUST THE TEARING THESE.
WHAT ARE WE EXITING? WHAT'S NOT ENCUMBERED? JUST TO HELP UNDERSTAND, AND THAT'S A GREAT IDEA.
YOU'D PROBABLY GET IN A ROOM AND HAMMER A LOT OF THIS OUT.
BUT WE ARE STARING DOWN SOME VERY BIG ISSUES AROUND THE PENSION AND UNDERSTANDING WHAT WE MIGHT BE ABLE TO LOOK TO FROM OUR OWN PROPERTIES AS IT COULD BE A CRITICAL PIECE OF THAT.
ANYWAY, I JUST WANTED TO HEAR THE DISCUSSION AND I APPRECIATE THAT WE ARE DIGGING INTO THIS. THANKS.
WE ARE READY FOR ITEM B, PERSONNEL RULES, UPDATES BY NINA AREUS, DIRECTOR OF DEPARTMENT OF HUMAN RESOURCES.
>> GOOD AFTERNOON, CHAIR. NINA AREUS, DIRECTOR OF HUMAN RESOURCES AND I AM HERE TODAY TO TALK ABOUT SOME RECOMMENDATIONS FOR UPDATES TO THE PERSONAL RULES.
THE DEPARTMENT OF HUMAN RESOURCES IN COLLABORATION WITH THE CITY ATTORNEY'S OFFICE, REVIEWS, AND MODIFIES THE PERSONAL RULES FROM TIME TO TIME.
TYPICALLY, ONCE A YEAR, TO IDENTIFY OUTDATED AND OBSOLETE INFORMATION, TO MAKE UPDATES REGARDING ANY CHANGES TO FEDERAL LAWS OR STATE LAWS, AND TO MAKE MODIFICATIONS TO SEE THE PROCESSES AND PROCEDURES.
OUR RECOMMENDATIONS TODAY ADDRESS UPDATES TO THE PERSONAL RULES TO REMOVE OBSOLETE TERMINOLOGY, ALSO ALLOW EMPLOYMENT OF 15-YEAR-OLDS AS LIFEGUARDS.
CLARIFYING HOW OVER TIME ELIGIBILITY FOR ATTENDANCE INCENTIVE LEAVE IS AFFECTED BY LEAVES, AND EXPAND PROFESSIONALS WHO CAN APPROVE MENTAL HEALTH LEAVE.
ALSO, WE'LL PROPOSE REVISING LANGUAGE FOR CLARITY IN THE COMBAT CLASS INCLUDE TELEWORKING IN THE RULES OF CONDUCT, AND EXPAND EXECUTIVES ABLE TO HEAR GRIEVANCES, AND APPEALS.
SLIDE 5 TALKS ABOUT THE ISSUES AND OPERATIONAL CONCERNS THAT WE'RE ADDRESSING.
SLIDE 6 TALKS ABOUT THE NEED TO CLARIFY THE AGE OF ENROLLMENT FOR PRE-65 RETIREMENTS.
ALSO, ABOUT MORE DETAILS ON THE TITLES THAT WE WANT TO INCLUDE TO HEAR GRIEVANCES AND APPEALS.
SLIDE 7 TALKS ABOUT IN MORE DETAIL ABOUT EACH ONE OF THESE SECTIONS THAT WE ARE ADDRESSING, AND THE REASONS WHY WE ARE DOING THAT.
ON SLIDE 8, THERE'S MORE DETAIL ON THE CHANGES TO OVERTIME CALCULATION FOR MENTAL HEALTH LEAVE AND COMPASSIONATE LEAVE.
CHANGES TO SECTION 34-17 INCLUDE COMPASSIONATE LEAVE, INJURY LEAVE, MENTAL HEALTH LEAVE, AND QUARANTINE LEAVE AS PART OF, FOR THE PURPOSES OF COMPUTING OVER TIME.
ALSO IDENTIFIED THAT PAID PARENTAL LEAVE AND SICK LEAVE WILL NOT BE COUNTED AS WORK TIME FOR THE PURPOSES OF COMPUTING OVER TIME.
THERE IS NO IMPACT FOR COMPASSIONATE LEAVE, INJURY LEAVE, PAID PARENTAL LEAVE, AND SICK LEAVE.
HOWEVER, THERE IS SOME IMPACT TO THE OVERTIME CALCULATION FOR MENTAL HEALTH LEAVE, AND I WILL SPEAK TO THAT IN MORE DETAIL LATER IN THE PRESENTATION.
SLIDE 10 TALKS ABOUT THE HOURS.
ABOUT SECTION 34-19, WHICH TALKS ABOUT WORK HOURS, PAID LEAVE, AND OVER TIME FOR PUBLIC AND SAFETY EMPLOYEES AND SLIDE 11 TALKS ABOUT THE IMPACT AND HOW IT'S CALCULATED.
THE IMPACT AFFECTS ONLY THE ADDITIONAL HOURS OF OVERTIME THAT WILL BE INCURRED WITH THIS CHANGE, SO THE IMPACT IS MINIMUM.
SECTION 34 TALKS ABOUT MENTAL HEALTH LEAVE AND WE ARE INCLUDING
[00:45:04]
LICENSED MENTAL HEALTH PROFESSIONALS TO BE ABLE TO VERIFY THE NEED FOR MENTAL HEALTH LEAVE.THEY WERE NOT INCLUDED PREVIOUSLY.
PAID PARENTAL LEAVE, WE ARE MAKING A CORRECTION THERE, THERE'S NO FINANCIAL IMPACT TO THAT.
WE ARE PROPOSING EXPANDING THE ELIGIBILITY FOR COMPASSIONATE LEAVE FOR EMPLOYEES THAT ARE EXPECTED TO RETURN TO WORK IN THE FUTURE.
AS IT'S WRITTEN CURRENTLY ONLY EMPLOYEES THAT ARE NOT ANTICIPATING TO COMING BACK TO THE CITY ARE ELIGIBLE, AND WE IDENTIFY THAT IN PARTICULAR FOR OUR UNIFORM EMPLOYEES, THIS CHANGE WILL BE VERY BENEFICIAL.
THE FINANCIAL IMPACT IS 131,000.
ON PAGE 14, THERE'S THE CALCULATION OF HOW MANY HOURS WE EXPECT TO PAY IN ADDITION AND WHAT IS THE COST.
PAGE 15 TALKS ABOUT CORRECTING LANGUAGE RELATED TO THE COMEBACK OPTION, JUST TO MAKE SURE THAT WE CLARIFY THAT ENROLLMENT PERIOD IS AT AGE 66 AND NOT AFTER OR BEFORE.
IN THE UNACCEPTABLE CONDUCT PORTION OF THE RULES OF CONDUCT, WE ARE ADDING TELEWORK AS EMPLOYEE'S APPROVED FOR TELEWORK ALSO ARE SUBJECT TO ATTENDANCE.
GRIEVANCE AND APPEALS, WE ADDED DEPUTY CITY MANAGER AND CHIEF FINANCIAL OFFICERS.
THOSE ARE TWO TITLES THAT ARE NOT INCLUDED CURRENTLY AND MAKE THEM PART OF THE GROUP THAT WILL BE HEARING GRIEVANCES AND APPEALS.
STAFF RECOMMENDATION IS THAT THE GPFM COMMITTEE FORWARD THE FOLLOWING TO CITY COUNCIL FOR CONSIDERATION, WHICH IS THE APPROVAL OF ALL PROPOSED AMENDMENTS TO THE PERSONAL RULES.
IF APPROVED, THESE CHANGES WILL BE EFFECTIVE AFTER COUNCIL APPROVAL AND WE WILL WORK TO COMMUNICATE INFORMATION TO EMPLOYEES AND IMPLEMENT IMMEDIATELY.
IF NOT APPROVED ALTERNATIVE PROCESSES WILL BE DEVELOPED BASED ON THE ITEMS NOT APPROVED.
THIS CONCLUDES MY PRESENTATION AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.
>> THANK YOU SO MUCH. START WITH CHAIRWOMAN MENDELSOHN.
>> THANK YOU. ON SLIDE 10 YOU SAY THERE'S NO FINANCIAL IMPACT TO THESE LEAVES AND I KNOW YOU MENTIONED THAT THESE ARE HOURLY EMPLOYEES AND SO OTHER EMPLOYEES MIGHT BE WORKING OVERTIME, BUT HOW CAN YOU SAY THERE'S NO FINANCIAL IMPACT?
>> THE CALCULATION OF THE FINANCIAL IMPACT IS ON PAGE 11.
>> ON 10 THAT THIRD BULLET, FINANCIAL IMPACT, NO IMPACT FOR THE COMPASSIONATE LEAVE, PAID PARENTAL LEAVE AND SICK LEAVE.
I'M JUST TRYING TO UNDERSTAND HOW WE CAN SAY THAT.
SOMEBODY IS DOING THAT WORK OR ELSE MAYBE WE'RE ASSUMING EVERY EMPLOYEE IS NEEDED.
>> YES. WE'RE TALKING ABOUT FINANCIAL IMPACT RELATED TO OVERTIME CALCULATION BECAUSE OF THOSE HOURS.
IF WE CALCULATE OVERTIME INCLUDING THOSE HOURS IN THE CALCULATION, THERE WILL BE NO IMPACT.
>> YOU HAVE FAMILY LEAVE ON HERE, PAID PARENTAL LEAVE.
HOW DO YOU SAY THERE'S NO FINANCIAL IMPACT FOR PAID PARENTAL LEAVE? I'M SUPPORTIVE THAT WE HAVE THAT PLAN, BUT IT'S CERTAINLY NOT WITHOUT A COST.
>> YES. FOR PAID PARENTAL LEAVE HAS A COST.
WE'RE TALKING ABOUT ANY OVERTIME INCURRED BECAUSE OF PAID PARENTAL LEAVE.
PAID PARENTAL LEAVE TYPICALLY IS RUN IN WEEKS AT A TIME, SO THERE'S NO OVERTIME THAT WILL BE ASSOCIATED WITH IT.
IT WOULD ACTUALLY NOT MAKE A DIFFERENCE WHEN WE LOOK AT THE OVERTIME CALCULATION IF WE INCLUDE THAT PARTICULAR LEAVE.
>> I'M REALLY NOT FOLLOWING YOU.
IF MY COLLEAGUE GOES ON A 12-WEEK LEAVE AND THEY'RE MISSING FROM THE DEPARTMENT.
ONE PERSON GOES ON MATERNITY LEAVE, ARE YOU SAYING THAT NONE OF THESE NINE PEOPLE ARE GOING TO HAVE TO WORK OVERTIME TO HELP DO THIS WORK OR WE'RE NOT GOING TO HIRE A TEMP OR SOMETHING ISN'T GOING TO HAPPEN TO DO THE WORK OF THAT 10TH PERSON?
>> THE CHANGE DOESN'T ADDRESS THE OVERTIME FOR THE PEOPLE THAT WILL BE HIGHER OR PERFORMING THE WORK IN LIEU OF THE PERSON THAT IS GONE.
[00:50:02]
THE CALCULATION IS TALKING ABOUT ANY OVERTIME THAT THE PERSON THAT IS GONE IS GOING TO BE INCURRING.>> BUT IT'S MISLEADING TO SAY THERE'S NO FINANCIAL IMPACT.
WELL, THERE'S NO FINANCIAL IMPACT TO THAT ONE PERSON WHO IS ON THE LEAVE BUT WHEN YOU TALK ABOUT FINANCIAL IMPACT, I'M EXPECTING YOU TO BE TALKING ABOUT IT FOR THE ORGANIZATION.
THE CITY OF DALLAS HAS A BIG FINANCIAL IMPACT FOR ALL THESE DIFFERENT LEAVES.
I'M JUST NOT UNDERSTANDING HOW THIS IS BEING COMMUNICATED.
>> WE ARE PROVIDING INFORMATION ABOUT THE FINANCIAL IMPACT RELATED TO THE CHANGES THAT WE'RE PROPOSING.
THOSE LEAVES THAT TO WHICH YOU'RE REFERRING TO, INDEED, THEY HAVE A FINANCIAL IMPACT THAT THEY WERE APPROVED IN A SEPARATE ACTION AND IS NOT RELATED TO THE PROPOSED CHANGES THAT WE HAVE HERE TODAY.
>> WELL, WHAT I WOULD LOVE TO HAVE CHAIR IS A CHART.
I WOULD LOVE TO HAVE A CHART THAT HAS ALL THE DIFFERENT KINDS OF LEAVE, EVERYTHING FROM VACATION, ALL THE CITY HOLIDAYS, ALL THE DIFFERENT LEAVES.
WHAT THAT BENEFIT IS FOR EVERY EMPLOYEE AND THEN ALSO THE ACTUAL FINANCIAL IMPACT OF THAT POLICY ON THE CITY, LIKE HOW MUCH IS IT COSTING US TO OFFER PAID PARENTAL LEAVE? HOW MUCH DOES IT COST US FOR INJURY LEAVE, VACATION, SICK TIME.
JUST FLAT OUT, WHAT IS THE IMPACT OF ALL THESE BENEFITS THAT WE HAVE, BECAUSE I DON'T THINK PEOPLE REALIZE, FIRST OF ALL, THE EXTREMELY GENEROUS PLAN THAT WE HAVE.
IF YOU'RE LOOKING FOR A JOB, THERE'S 1,000 OPENINGS, YOU SHOULD COME APPLY BUT ALSO THE EMPLOYEES NEED TO UNDERSTAND THE BENEFITS THAT WE'RE ACTUALLY PROVIDING, AND I DON'T THINK THEY DO AND THE TAXPAYERS ARE PAYING FOR THIS AND I THINK THEY SHOULD UNDERSTAND WHAT THEY'RE PROVIDING.
I WOULD JUST LIKE A BIG CHART THAT'S COMPREHENSIVE OF ALL LEAVES AND BENEFITS THAT ARE TIME-RELATED AND THOSE COSTS.
>> IF I MAY, THANK YOU SO MUCH A CHAIR WEST, AND THANK YOU COUNCILWOMAN MENDELSOHN FOR THE QUESTIONS.
THROUGH THE BUDGET, WE ACTUALLY INCLUDE THOSE FINANCIAL IMPACTS FOR ALL OF THE LEAVES THAT YOU JUST SPOKE OF.
IF YOU'RE ASKING US TO COME BACK AND THEN PUT THOSE INTO A CHART TO WHERE YOU CAN CLEARLY SEE HOW MUCH IS IN THE BUDGET FOR THOSE VARIOUS TYPES OF LEAVE, THAT'S SOMETHING WE DEFINITELY CAN DO BUT I DO WANT TO ALSO MAKE ANOTHER POINT.
THE RULES ARE DESIGNED TO PROVIDE THE GUIDANCE FOR HOW WE IMPLY THOSE DIFFERENT LEAVES AND HOW WE THEN COMMUNICATE THAT TO OUR EMPLOYEES.
WHAT WE'RE DOING NOW IS UPDATING THE ACTUAL RULES BECAUSE SOME OF THE NEW LEAVES THAT WERE APPROVED BY THE CITY COUNCIL, LIKE THE PARENTAL LEAVE, THE CHILDCARE SUBSIDY, NONE OF THOSE THINGS WERE IN OUR EXISTING RULES.
WE'RE REALLY DOING THAT CLEAN OUT, WHICH IS WHAT NINA IS DESCRIBING, SO THIS IS NOT THE FINANCIAL CONVERSATION BECAUSE THIS IS JUST ABOUT THE RULES AND HOW WE APPLY THEM TO ALL OF OUR EMPLOYEES BUT WE DEFINITELY CAN GO BACK THROUGH THE BUDGET, PULL OUT THE DIFFERENT TYPES OF LEAVES THAT YOU'RE REFERRING TO AND BRING THAT CONVERSATION BACK TO THE COUNCIL BUT THE FINANCIAL IMPACT ITSELF IS INCLUDED IN THE BUDGET.
>> BUT AT THE POINT THAT YOU PUT NO FINANCIAL IMPACT FOR THESE, I ACTUALLY WANT TO SEE THAT FINANCIAL IMPACT AND YES, IT IS BROKEN OUT BY DEPARTMENT FOR THINGS LIKE SICK TIME, I'M SORRY, FOR VACATION BUT I'M LOOKING FOR THE ENTIRE CITY TOGETHER, NOT DEPARTMENT BY DEPARTMENT.
>> WE DEFINITELY, AS I MENTIONED, WE CAN PULL THAT OUT AND LET YOU SEE WHAT SHOWS UP IN THE BUDGET, BUT THIS IS NOT THE FINANCIAL CONVERSATION. THANK YOU.
>> THANKS AND I'LL JUST ADD ONE COMMENT AS THE ADDENDUM IS VERY USEFUL, I THINK TO AND SEEING THE LANGUAGE THAT YOU'RE ACTUALLY CHANGING OR RECOMMENDING TO BE CHANGED HERE AND I HAVEN'T REALLY COMBED THROUGH IT AS MUCH AS I SHOULD, SO I APPRECIATE YOU INCLUDING THAT.
I THINK I'M GOOD ON THIS ONE. ANY OTHER QUESTIONS? NO, ALL RIGHT. THANK YOU.
>> WE'LL MOVE ON TO ITEM C, THE RECOMMENDED AND IT WAS NOTICED AS 2024 EXTERNAL AUDIT WORK PLAN SHOULD HAVE READ RECOMMENDED 2023 EXTERNAL AUDIT WORK PLAN.
DO WE HAVE SOMEBODY HERE WHO CAN BRIEF US ON THAT. ALL RIGHT, COME ON DOWN.
>> CHAIR, BEFORE FINALIZING I JUST WANTED TO ASK IF THE COMMITTEE WAS GOING TO BE RECOMMENDING THE THE APPROVAL BY COUNCIL.
>> CITY ATTORNEY, DO WE NEED TO MAKE A RECOMMENDATION TODAY? YOU WANTED SOME MORE INFORMATION.
[00:55:01]
I THINK WE CAN DRESS IT NEXT MONTH IN TERMS OF TAKING A VOTE.IF THAT'S SOMETHING THAT'S REQUIRED.
IT'S NOT REQUIRED? WE'LL JUST BRING IT BACK UP NEXT MONTH.
>> GOOD AFTERNOON. I'M SARAH DEMPSEY.
I AM THE PARTNER ON YOUR EXTERNAL AUDIT, AND LIKE IT WAS MENTIONED, IT IS THE 2023 AUDIT, SEPTEMBER 30TH, 2023 THAT WE'LL BE COVERING.
THIS IS REALLY THE PLANNING PHASE.
WHAT WE'VE DONE TO THIS POINT IS WE'VE LOOKED AT INTERNAL CONTROLS, WE'VE DONE A LITTLE BIT OF WORK IN THE SUMMER TO GET AHEAD, BUT THIS IS OUR PLANNING MEETING BEFORE WE GO INTO THE YEAR-END FINANCIAL STATEMENT AUDIT.
NEXT SLIDE. I'LL GO THROUGH AN INTRODUCTION, OUR INTERIM COMMUNICATIONS, THE AUDIT PROCESS, SOME NEW ACCOUNTING PRONOUNCEMENTS THAT ARE GOING TO BE IMPLEMENTED THIS YEAR, AND THEN ANY CONCERNS THAT YOU HAVE WE'RE HERE TO ADDRESS.
THIS IS OUR ENGAGEMENT TEAM AT A HIGH LEVEL.
WE HAVE A QUALITY CONTROL PARTNER.
WE HAVE OUR WEAVER TEAM THAT COMES OUT INTO THE FIELD TO DO THE AUDIT.
THEN WE ALSO HAVE THOSE MINORITY AND WOMEN BUSINESS OWNED CONTRACTORS THAT WE WORK WITH, AS WELL AS OUR IT ADVISORY GROUP COMES IN AND HELPS US TO WHERE WE CAN RELY ON THE CONTROLS THAT CAN HAVE A MATERIAL IMPACT ON YOUR FINANCIAL STATEMENTS.
NEXT SLIDE. WE'RE RESPONSIBLE FOR MAKING SURE THAT THE FINANCIAL STATEMENTS ARE FAIRLY REPRESENTED.
WHEN WE'RE GOING THROUGH THE AUDIT, THAT'S THE KEY PIECE THAT WE'RE REALLY TRYING TO GET TO.
WE CAN'T GIVE YOU ABSOLUTE ASSURANCE THAT WE'LL BE TESTING EVERYTHING, BUT WE DO HAVE TO GIVE FAIR AND REASONABLE ASSURANCE TO YOU THAT THE FINANCIAL STATEMENTS ARE MATERIALLY CORRECT.
WE'RE GOING AND WE'RE DOING OUR TEST WORK TO GET TO THAT POINT. NEXT SLIDE.
THEN WE ALSO HAVE OUR SINGLE AUDITS, SO THOSE WILL BE THE FEDERAL GRANTS THAT YOU RECEIVE AND THE STATE GRANTS THAT YOU RECEIVED.
WE GIVE AN OPINION ON THE FINANCIAL STATEMENTS AND THEN WE ALSO GIVE AN OPINION ON THOSE MAJOR PROGRAMS THAT WE'RE TESTING.
OUR RESPONSIBILITIES AS IT RELATES TO THE FINANCIAL STATEMENTS, IT'S PREPARED BY THE CITY AND THEN WE ARE GOING IN AND REVIEWING THOSE FINANCIAL STATEMENTS AND MAKING SURE THEY AGREE TO THE BALANCES THAT WE AUDITED.
LOOKING AT THESE RESPONSIBILITIES, WE JUST WANT TO BREAK THIS OUT TO YOU.
I WON'T READ EVERYTHING LINE-BY-LINE, BUT IT'S WHAT THOSE CHARGED WITH GOVERNANCE ARE RESPONSIBLE FOR AND WHAT THOSE CHARGED WITHIN THAT MANAGEMENT IS RESPONSIBLE FOR.
WE REPORT TO YOU, WE WORK WITH THE CITY TO GET THE AUDIT COMPLETED, BUT WE WANTED TO MAKE SURE THAT YOU SAW THAT YOUR RESPONSIBILITIES AS FAR AS SETTING THE CITY STRATEGIES TONE AT THE TOP, YOU'RE AWARE OF THOSE AND THEN WHAT MANAGEMENT IS RESPONSIBLE FOR IS THAT THE INTERNAL CONTROLS ARE IN PLACE AND THAT THE FINANCIAL STATEMENTS ARE MATERIALLY CORRECT AND PREPARING THOSE FINANCIAL STATEMENTS FOR YOU.
NEXT SLIDE. THIS IS OUR TIMELINE.
WE'VE COME IN IN THE SUMMER, WE'VE DONE SOME INTERIM WORK, AND THEN WE COME BACK.
WE'RE ACTUALLY OUT HERE NOW AND WE'LL CONTINUE THE AUDIT UNTIL THE END OF FEBRUARY, AND THAT'S WHEN WE ISSUE THOSE FINANCIAL STATEMENTS AND WE REPORT BACK TO YOU EARLY MARCH.
IT MIGHT ACTUALLY BE MARCH 21ST THIS YEAR AND WE'LL GIVE YOU THE RESULTS OF THE AUDIT THEN.
OUR AUDIT APPROACH IS RISK-BASED.
WE'RE READING THE MINUTES AND WE'RE LOOKING TO SEE WHERE COULD THOSE FINANCIAL STATEMENTS BE MATERIALLY MISSTATED.
THAT'S WHAT WE GO IN EVERY YEAR, READING THE MINUTES, LOOKING AT THE STATEMENTS THAT WERE IMPLEMENTED THIS YEAR, WHERE COULD THE FINANCIAL STATEMENTS BE MATERIALLY IMPACTED AND THAT'S WHERE WE FOCUS OUR PLAN AND OUR TEST WORK.
NEXT SLIDE. MATERIALITY, I'VE SAID THAT QUITE A FEW TIMES.
I CAN'T GIVE IT THE NUMBER IN FRONT OF EVERYONE BECAUSE WE DO TEST THINGS UNDERNEATH THE THRESHOLD RIGHT ABOVE IT AND WE DON'T WANT EVERYONE TO KNOW WHAT MATERIALITY IS OR CONTROLS COULD BE CIRCUMVENTED TO TRY TO FALL BELOW WHAT OUR MATERIALITY THRESHOLD IS.
BUT JUST HIGH LEVEL, IT COULD BE A PERCENTAGE OF REVENUE, FOR EXAMPLE, AND IT'S BY OPINION UNIT, SO THE GENERAL FUND HAS ITS OWN MATERIALITY.
DWU HAS ITS OWN MATERIALITY, THE AIRPORT.
EACH OPINION UNIT DOES HAVE A SEPARATE MATERIALITY AMOUNT AND THAT'S REALLY HOW WE BASE OUR TESTING.
WE DO HAVE PROCEDURES THAT WE PERFORM FOR UNPREDICTABILITY,
[01:00:03]
AND THAT'S WHERE WE CAN GO IN BELOW THOSE THRESHOLDS AND JUST MAKE SURE THAT THE CITY DOESN'T KNOW WHAT TO EXPECT WHEN WE COME OUT EVERY YEAR.WE'RE NOT DOING THE SAME THING YEAR AFTER YEAR.
WE HAVE THAT ELEMENT OF UNPREDICTABILITY.
GOING OVER THE RISK OVERVIEW, THE NEXT THREE SLIDES ARE REALLY WHAT WE'VE IDENTIFIED AS HIGH RISK AREAS.
WE'RE REQUIRED TO COMMUNICATE THOSE TO YOU.
THEN AS YOU SEE THEM, IF YOU WANT TO COMMUNICATE WITH US ON ANYTHING ELSE TO ADD OR YOU HAVE QUESTIONS, THAT'S WHERE WE CAN HAVE THE DISCUSSION.
THE FIRST ONE IS ALWAYS MANAGEMENT OVERRIDE OF CONTROLS.
THAT'S A RISK EVERYWHERE AND IT'S JUST WHERE JOURNAL ENTRIES COULD BE CREATED WITHOUT THE PROPER APPROVAL PROCESS, FOR EXAMPLE, WHERE COULD THEY GO IN AND CREDIT REVENUE, INFLATE YOUR INCOME STATEMENT AND NO ONE WOULD SEE IT BECAUSE THERE WERE NO CONTROLS IN PLACE, MANAGEMENT WAS ABLE TO CIRCUMVENT CONTROLS.
THAT'S A BIG ONE. IMPROPER REVENUE RECOGNITION IS ALWAYS A HIGH-RISK AREA, MAINLY FOR BOND ISSUANCES, ESPECIALLY WITH YOUR ENTERPRISE FUNDS WITH DWU AIRPORT.
THAT'S REALLY A BIG FOCUS WHEN WE'RE AUDITING THOSE AREAS IS THAT REVENUE IS NOT OVERSTATED.
THEN YOUR GRANT REVENUE AND EXPENDITURES BECAUSE IT'S DECENTRALIZED AND IT CAN BE HARD TO MANAGE ALL THE DIFFERENT GRANTS THE CITY HAS.
WE HAVE THAT AS A SIGNIFICANT RISK AS WELL.
THEN OBVIOUSLY WITH THE COVID MONEY IN RECENT YEARS, IT'S JUST BEEN EVEN MORE OF A RISK.
OUR AUDIT IS HIGHLY FOCUSED ON GRANT REVENUE AND EXPENDITURES AS WELL. NEXT SLIDE.
THEN IMPROPER REVENUE RECOGNITION FOR OTHER FUNDS.
WHAT WE'RE DOING IS WE'RE REALLY TESTING THE EXISTENCE WHEN WE'RE LOOKING AT IMPROPER REVENUE RECOGNITION, MAKING SURE THAT WE'RE SEEING THAT IT'S ACTUALLY COMING IN THE DOOR AND IT'S NOT A JOURNAL ENTRY OR SOMETHING THAT WAS FALSIFIED.
YOUR CAPITAL ASSETS, WE SPEND A LOT OF TIME THERE.
THERE'S A LOT OF CONSTRUCTION GOING ON, A LOT OF ASSETS, AND THAT'S JUST A MAJOR AUDIT AREA OUT HERE.
IT'S A CHALLENGE FOR EVERY CITY TO GET THAT INFORMATION TO US AND WE APPRECIATE THAT IT IS DEFINITELY A CHALLENGING AREA FOR SURE.
LONG-TERM LIABILITIES IS ANOTHER ONE.
YOUR BONDS, DIFFERENT LONG-TERM AGREEMENTS, THE LEASES, CONDUIT DEBT, THINGS LIKE THAT, YOUR REVENUE BONDS.
THEN MISAPPROPRIATION OF ASSETS.
WE'RE LOOKING AT THE CASH DISBURSEMENTS THAT ARE GOING OUT, THEN PAYROLL DISBURSEMENTS AS WELL, AND THEN EVALUATION OF ESTIMATES AS PART OF OUR AUDIT.
INFORMATION TECHNOLOGY. AGAIN, I MENTIONED THAT WE DO HAVE OUR IT ADVISORY GROUP COME OUT AND THAT'S WHERE THEY'RE LOOKING AT THOSE FINANCIAL STATEMENTS, SOFTWARE PACKAGES THAT DO ROLL UP INTO YOUR FINANCIAL STATEMENTS AND MAKING SURE THAT THERE'S CONTROLS OVER THOSE INVESTMENTS, RISKS, UNCERTAINTIES, CONTINGENCIES.
WE ALSO DO DATA MINING PROCEDURES BECAUSE OF THE VOLUME OF DATA WE WORK WITH, GRADIENTS SOLUTIONS TO HELP US MINE THROUGH THE COUNTLESS AMOUNTS OF INFORMATION THAT WE RECEIVE, WHETHER IT'S JOURNAL ENTRIES, CHECKS, PAYROLL CHECKS, THINGS LIKE THAT.
THEN THIS YEAR, ONE OF THE BIG STANDARDS THAT THE CITY HAS BEEN WORKING HARD TO GET READY FOR IS SUBSCRIPTION-BASED IT ARRANGEMENTS.
THEY HAD TO GET AN INVENTORY OF ALL THE SOFTWARE CONTRACTS THAT THE CITY HAS.
A LOT OF HARD WORK HAS GONE INTO THAT AND THAT WAS GUIDED BY GASB 96.
THEN OTHER AREAS THAT WE HAVE ARE THE PASSENGER FACILITY CHARGE REPORT, THE LOVE FIELD AIRPORT MODERNIZATION TRANSACTIONS, AND THEN TCEQ COMPLIANCE ARE ALSO PART OF THE AUDIT.
THIS IS A LIST OF THE THE AUDITS THAT WE ARE ISSUING: THE FINANCIAL STATEMENT AUDIT, THE SINGLE AUDIT.
THE CONVENTION CENTER AND HOTEL HAS A SEPARATE AUDIT.
THEN WE DO DWU AND THE AIRPORT AS PART OF THE CITY AUDIT, BUT THEY DO ISSUE SEPARATE FINANCIAL STATEMENTS THAT WE REVIEW AND AUDIT THOSE AS WELL.
THEN I MENTIONED PASSENGER FACILITY CHARGE AND TCEQ.
OUR MAJOR PROGRAMS SO FAR WHEN WE LOOK AT THE GRANTS, WHAT WE'LL BE TESTING AND GIVING AN OPINION ON ARE THE CLEAN WATER AND DRINKING WATER GRANTS.
YOUR CORONAVIRUS STATE AND LOCAL RECOVERY FUNDS, AND THEN EMERGENCY RENTAL ASSISTANCE PROGRAMS. THOSE ARE OUR FOUR FEDERAL PROGRAMS THAT WE HAVE FOR SURE.
THAT COULD CHANGE WHEN WE GET TO THE YEAR END AND SEE THE FINAL BALANCES, ANOTHER ONE COULD POP UP, BUT AS OF INTERIM, THAT'S OUR MAJOR FEDERAL PROGRAMS AND THEN FOR STATE CONFISCATED MONIES IS OUR MAJOR PROGRAM.
THIS IS JUST A CHART TO SHOW YOU THE STATEMENTS.
I WON'T GO OVER THESE IN TOO MUCH DETAIL BECAUSE THERE'S STILL ANALYZING WHAT THE EFFECTS WILL BE.
[01:05:02]
THIS YEAR THERE'S A CONDUIT DEBT STATEMENT THAT WILL BE IMPLEMENTED.YOU'VE GOT PUBLIC-PRIVATE AND PUBLIC-PUBLIC PARTNERSHIPS, AND THEN YOUR SUBSCRIPTION-BASED IT ARRANGEMENTS.
THEN LOOKING AHEAD, GASB 100 WILL BE NEXT YEAR AND THEN BEYOND THEY ARE UP TO GASB 101.
JUST TO LET YOU SEE THAT, IT IS ALWAYS CHANGING AND WE APPRECIATE EVERYONE'S HARD WORK AT KEEPING UP WITH ALL THE CHANGES IN THE CONTROLLER'S OFFICE.
THESE NEXT THREE SLIDES REALLY GET INTO THOSE STANDARDS THAT ARE IMPLEMENTED THIS YEAR.
CONDUIT DEBT, THE CITY HAS REACHED OUT TO GASB.
THEY'VE TALKED THROUGH THE CONTRACTS WITH THE LOVE FIELD AIRPORT MODERNIZATION CORPORATION, SO THAT'S IN PROCESS.
THEN THE NEXT ONE WE HAVE IS THE PUBLIC PRIVATE AND PUBLIC PUBLIC PARTNERSHIPS.
THEY'RE EVALUATING ALL OF THOSE CONTRACTS THAT COULD FALL INTO THIS.
THEY COULD BE TREATED LIKE LEASES THIS YEAR, STILL GOING THROUGH THAT PROCESS, AND THEN SAME WITH THIS LAST SLIDE WHICH IS GASB 96, YOUR SUBSCRIPTION-BASED IT ARRANGEMENTS.
THEY'RE WORKING ON THE INVENTORY NOW AND THE JOURNAL ENTRIES THAT WILL BE A RESULT OF ADDING A LEASE LIABILITY AND A LEASE ASSET FOR SOFTWARE.
I'M HERE TO ANSWER ANY QUESTIONS THAT YOU HAVE ABOUT THE AUDIT.
WE'RE JUST GETTING STARTED, SO ANY CONCERNS OR ANYTHING THAT WE CAN HELP WITH, WE'RE HERE.
>> WE HAVE NO QUESTIONS. YOU WERE VERY THOROUGH. THANK YOU.
>> COLLEAGUES, JUST A LITTLE HOUSEKEEPING ITEM.
WE'VE NOW GONE THROUGH EVERYTHING EXCEPT THE BRIEFING MEMORANDUMS ON ITEM E, THE TWO-MONTH FORECAST.
I DO NEED TO CLARIFY THE PERSONNEL RULES THAT IS ACTUALLY SET FOR AN AGENDA ITEM FOR THE DAY AFTER OUR COMMITTEE MEETING IN DECEMBER.
EVEN THOUGH WE ARE GOING TO BRING IT BACK ON DECEMBER 12TH FOR COMMITTEE, IT WILL BE NOTICED THE FRIDAY BEFORE AS A COUNCIL AGENDA ITEMS. WE'LL HAVE AN OPPORTUNITY TO ASK MORE QUESTIONS TO THE DIRECTOR AND SEE THE CHART THAT YOU REQUESTED, CHAIRWOMAN.
BUT JUST SO EVERYONE KNOWS, IT WILL BE NOTICED THE FRIDAY BEFORE.
THE TWO MONTH AGENDA FORECAST WAS NOTICED AS ITEM E. THERE IS ONE OTHER CHANGE TO THAT. IT'S PRETTY MINOR.
WE'RE JUST GOING TO INCLUDE CITY REAL ESTATE REVIEW IS GOING TO BE MONTHLY AS A DISCUSSION ITEM MOVING FORWARD.
IF DR. PEREZ WANTS TO BRIEF IT, HE'S WELCOME TO, BUT I'M FINE LEAVING IT AS A DISCUSSION ITEM UNTIL WE GET A LITTLE FURTHER IN THE PROCESS.
WITH THAT BEING SAID, WE'LL JUST GO STRAIGHT DOWN THE BRIEFING MEMORANDUM.
ITEM F IS THE BUDGET ACCOUNTABILITY REPORT.
I DO HAVE A QUESTION ON THIS ONE.
I DON'T KNOW IF MY COLLEAGUES DO, BUT I WANTED TO GET STAFF FEEDBACK ON PAGE 25, UNDER THE GPFM SECTION, ITEM NUMBER 11, PERCENTAGE OF INFORMAL SOLICITATION REQUESTS UNDER $50,000 PROCESS WITHIN 15 BUSINESS DAYS PRIOR PROCUREMENT.
THE TARGET WAS 80% OF THOSE TO BE DONE ON TIME.
IT LOOKS LIKE IT WAS AT 22%. I WANT TO KNOW WHY.
>> GOOD AFTERNOON. CECILIA SHOE, BUDGET AND MANAGEMENT SERVICES, ASSISTANT DIRECTOR.
WE'VE GOT DANIEL HERE FROM PROCUREMENT SERVICES.
>> GOOD AFTERNOON. THANK YOU FOR THE QUESTION.
DANIEL THOMPSON, DIRECTOR OF OPPOSITE PROCUREMENT SERVICES.
THE INFORMAL PROCESS THAT WE MANAGE ALL OF THE UNDER 50,000 PROCUREMENTS, THEY DID NOT MEET THE METRICS FOR THIS YEAR FOR TWO FACTORS, NUMBER 1, THIS PROCESS WAS INCLUDED IN OUR PROCESS IMPROVEMENT.
AGAIN, THE STEPS WERE EXCESSIVE AND ADDITION TO THAT, THE STAFFING.
OUR UNDER 50,000 TEAM IS COMPOSED OF ONLY TWO STAFF MEMBERS THAT MANAGES ALL OF THE CITIES PROCUREMENTS FOR UNDER $50,000.
WE HAVE ONE POSITION THAT WAS VACANT FOR HALF OF THE YEAR AND WE FILLED THAT WITH CHIMPS IN THE INTERMEDIARY.
HOWEVER, WE'VE PERMANENTLY FILLED THAT.
THERE WAS TWO ISSUES ONE WAS RECTIFIED THROUGH OUR PROCESS IMPROVEMENT WHICH WAS IMPLEMENTED TO N1 AND WE HAD A VACANCY FOR HALF OF THE YEAR WHICH WAS ALSO FILLED.
>> YOU DON'T SEE THAT AS A PROBLEM MEETING TARGETS FOR THE NEXT FISCAL YEAR?
GOING ON TO NUMBER 35, PERCENTAGE INCREASE IN WORKFORCE DEVELOPMENT GRANT PARTICIPANTS IN UNDERSERVED POPULATIONS BY THE SMALL BUSINESS CENTER.
THE TARGET WAS 60% AND WE WERE AT RIGHT AT 50% AND THEN WANT TO UNDERSTAND WHY.
ASSISTANT CITY MANAGER, I BELIEVE WE HAVE DIRECTOR JOYCE WILLIAMS ONLINE TO RESPOND.
[01:10:11]
>> IS DIRECTOR WILLIAMS AVAILABLE TO RESPOND?
>> IT'S GOOD THING WE'VE GOT OUR IT ACCOUNTABILITY UP NEXT. JUST KIDDING.
>> I THINK IT'S USER ERROR RATHER THAN IT.
I THINK SHE'S BEING TRANSFERRED IN AS THIS MEETING IS SET CORRECT. [OVERLAPPING].
>> SORRY, I COULD NOT UNMUTE MYSELF.
I GUESS THERE WAS SET UP ON THE SECURITY TO NOT ALLOW PEOPLE TO JUST UNMUTE THEMSELVES, SO I APPRECIATE IT.
THANK YOU, SIR, FOR THE QUESTION.
JOYCE WILLIAMS, DIRECTOR, SMALL BUSINESS CENTER.
IF YOU WOULD NOT MIND REPEATING THE QUESTION AGAIN ABOUT THE PERCENTAGE.
>> SURE. THE ITEM NUMBER IN THE BUDGET ACCOUNTABILITY REPORT IS NUMBER 35, WHICH IS ON PAGE 26 UNDER WORKFORCE EDUCATION AND EQUITY.
THE LINE ITEM IS THAT IS FOR PERCENTAGE INCREASE OF WORKFORCE DEVELOPMENT GRANT PARTICIPANTS IN UNDERSERVED POPULATIONS.
THE FISCAL TARGET FOR '22, '23 WAS 60% AND THE ACTUAL WAS JUST OVER 50%.
WANT TO UNDERSTAND WHY WE'RE NOT HITTING OUR NUMBERS.
>> ONE OF OUR VENDORS THAT WE HAD A PARTNERSHIP WITH, UNITED WAY, HAD ACTUALLY ASKED AND REQUESTED THAT THEY WERE SERVED OVER 600 AT THE END OF THE YEAR BECAUSE OF ISSUES BASED ON COVID AND BASED ON OTHER ISSUES THAT THEY HAD, THEY WERE NOT ABLE TO MEET THAT.
WE DID AN ACTION IN WHICH WE REMOVED SOME OF THOSE FUNDINGS TO BE ABLE TO ENSURE THAT THEY WOULD NOT MEETING THEIR GOALS.
THEY ONLY MET ONLY 50% OF THE 600 THAT THEY HAD PLANNED TO SERVE.
THAT IMPACTED OUR OVERALL MISSION AND TARGET NUMBER.
THEY ARE SERVING RIGHT AT 320 INSTEAD OF 650 THAT THEY WERE ORIGINALLY GOING TO SERVE.
>> I HAD A HARD TIME HEARING YOU ON THAT ONE AND SO IF YOU WOULDN'T MIND SUPPLEMENTING YOUR RESPONSE WITH A MEMORANDUM JUST TO LAYING ALL THAT OUT THAT WOULD BE HELPFUL, MS. WILLIAMS.
>> THANK YOU. DO WE HAVE ANY OTHER QUESTIONS ABOUT THE BUDGET ACCOUNTABILITY REPORT? WE WILL MOVE ON TO THE NEXT ITEM.
THE TECHNOLOGY ACCOUNTABILITY REPORT.
DOES ANYBODY HAVE ANY QUESTIONS FOR THE DIRECTOR? LOOKS LIKE YOU'RE GOOD. WE HAVE ALREADY ADDRESSED ITEM H. ITEM I IS THE OFFICE OF THE CITY AUDITOR, MONTHLY UPDATE ON INTERNAL AUDIT REPORTS.
ANYBODY HAVE ANY QUESTIONS? NO.
ITEM J IS THE RECOMMENDED 2024 ANNUAL INTERNAL AUDIT PLAN.
I KNOW WE DO HAVE QUESTIONS ON THIS AS I'M PULLING UP THE MEMORANDUM HERE AND MR. SWANN, I KNOW YOU'VE MADE SOME CHANGES BASED ON COUNCIL MEMBER REQUESTS THAT AT A RECENT FULL COUNCIL BRIEFING.
I THINK CHAIRWOMAN SHULTZ HAD MADE SOME REQUESTS ON INCLUDING WHO REQUESTED WHAT AUDITS AND JUST EXPLAIN HOW YOUR PLAN MIGHT HAVE CHANGED FROM WHAT WAS ORIGINALLY POSTED.
>> WHAT MARX ONE CITY AUDITOR.
THE PLAN WAS SUBMITTED LAST OCTOBER, GPFM COMMITTEE AND THEN COUNCIL ASKED FOR IT TO BE REFERRING BACK TO GPFM.
THE CHANGES HAVE HAPPENED IS THAT WE ADDED WHO REQUESTED THE AUDIT AND THEN WE ALSO ADDED WHAT WE CONSIDERED TO BE PRIORITIES FOR START OF ENGAGEMENT, WHICH IS THE GREEN COATING ON THE PLAN AND THEN THE HOMELESS SOLUTIONS AUDIT HAD THE OBJECTIVES UPDATED WITH CONVERSATION WITH COUNCIL MEMBERS.
BASICALLY IT'S THE SAME PLAN AS BEFORE AND FOR YOUR CONSIDERATION AGAIN.
>> THANK YOU. CHAIRWOMAN MENDELSON, GO AHEAD.
[01:15:03]
>> THANK YOU. I'D LIKE TO ASK ABOUT TWO DIFFERENT AUDITS THAT ARE ON THERE.
THE FIRST ONE IS AUDIT NUMBER 2, AND THIS IS ABOUT THE INSPECTOR GENERAL AND I'M TRYING TO UNDERSTAND WHAT KIND OF AUDIT YOU WERE PLANNING TO DO ON THAT.
>> WELL, THE PLAN ON THERE WAS TO DO A WORKFORCE IMPACT, SO BASICALLY LOOKING AT WHAT IS THE DEMAND FOR THE WORK AND WHAT IS THE WORK THAT'S BEING DONE AS IT RELATES TO THE GUIDANCE THAT'S PROVIDED FOR THE DEPARTMENT AND THEN LOOKING AT THEIR PROCESSES FROM MY PERSPECTIVE.
>> WELL, I GUESS I'M TRYING TO UNDERSTAND THEY'VE BEEN FULLY OPERATIONAL ONLY SINCE JANUARY.
HOW BIG OF A RISK DO YOU BELIEVE THIS DEPARTMENT IS FOR THE CITY?
>> DEPENDS ON HOW YOU LOOK AT OVERALL FOR THE ENTIRE CITY.
FROM A FINANCIAL RISK, MINIMAL.
FROM A GOVERNANCE RISK, POTENTIALLY HIGH, CAN STAY OUR ENTIRE GOAL FOR ENSURING THE INTEGRITY OF THE CITY'S GOVERNANCE PROCESS AND PROCESSES.
I GUESS THAT WOULD BE MY ANSWER TO THAT.
>> WITHOUT EVEN A FULL YEAR'S OF INFORMATION, IS THIS AN APPROPRIATE AUDIT TO DO IT THIS TIME OR IS IT BETTER SERVE TO REVIEW THIS MAYBE NEXT YEAR?
>> WELL, IT WAS REQUESTED BY COUNCIL MEMBERS AND TRYING TO BE RESPONSIVE TO THEIR REQUESTS.
WE HAD ONE SIMILAR A COUPLE OF YEARS AGO FOR THE POLICE OVERSIGHT COMMITTEE WHEN THEY ONLY BEEN ABOUT SIX MONTHS AND IN THIS CASE, WE SHOULD HAVE AT LEAST A WHOLE YEAR WORTH OF DATA BY THE TIME WE GET TO IT.
>> IN THE AUDIT YOU'RE TALKING ABOUT EFFICIENCY AND SO HOW WOULD YOU DEFINE AN IG OFFICE ABOUT EFFICIENCY? HOW WOULD YOU EVALUATE THAT?
>> WELL, WE'D LOOK AT INSPECTOR GENERAL'S ASSOCIATIONS AND OTHER ACFE ON BEST PRACTICES FOR INVESTIGATIONS AND COMPARING THAT TO SEE IF THERE'S ANY GAPS.
>> I GUESS MY ISSUE IS THAT THIS OFFICE WAS SET UP ACTUALLY LOOKING AT ALL THESE OTHER CITIES THAT HAVE BEST PRACTICES.
THAT'S EXACTLY WHO WE MODELED THIS OFFICE AFTER, AFTER EXTENSIVE RESEARCH AND SO I WOULD LIKE TO REMOVE THIS AUDIT FROM THIS AUDIT PLAN AND CONSIDER IT FOR THE THE FOLLOWING YEAR.
THE SECOND ITEM ON THERE IS AUDIT 19 ABOUT PUBLIC WORKS, WHICH I BELIEVE CHAIRMAN WEST, YOU BROUGHT FORWARD AND THANK YOU FOR DOING THAT.
I WAS HOPING THAT THAT SCOPE COULD INCLUDE THE STREET CUTS AND MY UNDERSTANDING IS THEY HAVE A FIVE-YEAR GUARANTEE ON THE WORK.
AS I GO THROUGHOUT THE ENTIRE CITY, IT'S CLEAR THAT WE'RE NOT DOING SOME SORT OF AN INSPECTION, WHETHER IT'S IN YEAR 4 THAT WE NEED TO GO BACK TO EVERY SINGLE ONE AND SEE HOW THEY'RE HOLDING UP, SOMETHING NEEDS TO HAPPEN BECAUSE WE'RE SPENDING SO MUCH MONEY ON THESE ROADS AND WE'RE NOT MAKING ANY PROGRESS ON ROAD QUALITY.
BUT WE'RE ALLOWING THESE ROAD CUTS AND I DON'T THINK WE'RE GOING BACK AND MAKING SURE THAT THEY'RE REPAIRING THEM IN A WAY THAT IS FAIR TO OUR TAXPAYERS AND TO THE EFFORTS OF OUR PUBLIC WORKS DEPARTMENT AND SO I WOULD LOVE THAT TO BE PART OF YOUR SCOPE.
WHAT PROCEDURES ARE IN PLACE TO MAKE SURE THAT WE HAVE EVALUATED IF THE QUALITY OF WORK IS HOLDING UP OVER TIME?
>> WE DID DO AN AUDIT OF THE PAVING ABOUT TWO YEARS AGO AND ONE OF THE MAJOR ISSUES WAS THE INSPECTION OF PAVING SO WE COULD INCLUDE THAT AS A FOLLOW-UP OF THAT PRIOR AUDIT RECOMMENDATIONS.
>> BUT I DON'T THINK THE INSPECTION INCLUDED FOUR YEARS OUT FOR A FIVE-YEAR GUARANTEE ON A CUT.
I THOUGHT IT WAS JUST AFTER IT WAS INITIALLY LAID.
>> I'M TALKING ABOUT OVER TIME THAT IF THEY DIDN'T PROPERLY PUT IN RE-BAR, IF THEY DIDN'T PROPERLY COMPRESS LOWER LEVELS OF ROCK THAN IT'S DEPRESSED AND IT'S VERY DIFFICULT TO DRIVE ON AND IT'S CAUSING LOTS OF PROBLEMS, SO I THINK WE NEED TO HAVE THE VENDORS GO BACK OUT AND FIX IT.
I WOULD AGAIN, JUST LIKE TO HAVE THAT SPECIFIC ITEM INCLUDED IN WITH NUMBER 19 IF POSSIBLE. THANK YOU.
>> CHAIRMAN MARINA, GO AHEAD. VICE CHAIR.
[01:20:04]
[BACKGROUND] YEAH FIGHT IT OUT. COME ON.>> ON NUMBER 19, AND I'M NOT SURE IF THIS IS THE PLACE TO DISCUSS THIS OR NOT SO LET ME KNOW IF I'M OFF TOPIC OR NOT, BUT UNDERSTANDING THAT WE'RE DOING THESE REPAIRS AND LOOKING AT PAVING CUTTINGS DOWN THE ROAD IN ORDER TO PREVENT THOSE FROM HAPPENING AND AS FOR DALLAS IS WRAPPING UP AND WE'RE STARTING TO IDENTIFY AREAS OF OPPORTUNITY FOR HIGHER DENSITY OR DIFFERENT ZONING.
I KNOW WE'VE DONE A BETTER JOB WORKING WITH CROSS DEPARTMENTS BUT IN PARTICULAR DWU, WHEN WE NEED TO INCREASE CAPACITY ON SOME OF THESE UTILITIES, DOES THIS AUDIT LOOK TO SEE HOW OFTEN WE ARE WORKING WITH THOSE CROSS DEPARTMENTS AND HOW MANY TIMES IT'S A PRIVATE DEVELOPER VERSUS THE CITY GOING IN AND MAKING THOSE CUTS INTO THE PAVEMENT?
>> MY UNDERSTANDING FOR THE PLAN ON THIS AUDIT IS LOOKING MORE AT THE HOLISTIC OF ALL THE DIFFERENT PLANS AND ARE THOSE BEING CONSIDERED INTO OUR CONTRACTORS AND FOR COMPLETE STREETS PHASING ZERO, ALL THE DIFFERENT STRATEGIES THAT WE HAVE AND ENSURING THAT THOSE INSTRUCTIONS ARE BEING PROVIDED WITH THE LATEST PLANS THAT WE HAVE IN OUR DIFFERENT PRODUCT WORKS.
>> SURE AND THE REASON I BRING THIS UP AS WE ARE ABOUT TO EMBARK ON A BOND PROGRAM THAT'S GOING TO CALL FOR UPGRADES ON INFRASTRUCTURE ON ROADS IN AREAS THAT PERHAPS DON'T HAVE THE DENSITY TODAY.
BUT EVERY SINGLE PLAN THAT WE'RE LOOKING AT, INCLUDING FOR DALLAS, IS TELLING US WHAT WE SHOULD BE EXPECTING TO GO IN THIS PARTICULAR AREA.
I JUST WANT TO MAKE SURE THAT WE'RE DOING THAT UTILITY WORK IN CONJUNCTION WITH THAT STREET OR SIDEWALK REPAIR INSTEAD OF DOING THAT WORK AND THEN COMING IN A YEAR OR TWO YEARS DOWN THE ROAD AND THEN US TEARING UP THOSE ROADS AGAIN.
I THINK I HEARD YOU AND SO I'LL WORK WITH PUBLIC WORKS ON MAKING SURE THAT THOSE PROJECTS ARE ALIGNED AS THE PROGRESS GOES. THANK YOU.
>> THANK YOU. YOU SAY ON THE GREEN ONES THAT THEY'RE PRIORITIZED TO START WHEN RESOURCES ARE AVAILABLE.
>> THEY'RE GOING TO BE IN THIS BUDGET?
>> YES. IN THIS YEAR'S BUDGET CYCLE. YES.
>> GOING LOOKING AT YOUR HOURS ESTIMATED, ONE IS 900 THAT I THINK SHOULD TAKE 300 AND THEN ANOTHER IS 900 THAT I THINK SHOULD TAKE 1,500 AND SO I'M NOT REALLY UNDERSTANDING YOUR RATIONALE IF YOU'RE LOOKING AT STAFF RESOURCES AND YOUR HOUR ALLOCATION BECAUSE SOME OF IT MAY BE IT'S JUST ONE QUESTION AND I'M SEEING A 900.
THEN ONES THAT HAS GOTTEN MULTIPLE LAYERS, I'M SEEING IT BE 900 AND I WOULD THINK IT WOULD BE MORE, SO CAN YOU HELP ME UNDERSTAND?
>> THE BUDGET IS PROCESSED BY A GOAL OF HAVING 900 HOURS OVERALL AVERAGE FOR THE AUDITS FOR ALL THE AUDITS EXECUTED DURING THE BUDGET YEAR, FISCAL YEAR.
WE HAVE NOT HISTORICALLY EVEN ACHIEVED THAT 900, SO IT'S USUALLY MORE LIKE 1,100 HOURS PER AUDIT BUT SOME AUDITS ARE LESS AND SOME ARE MORE AND SO THAT'S THE GOAL TO GET TO THAT AVERAGE.
>> THAT'S THE GOAL TO BE ON AVERAGE.
IN REALITY, IT'S MORE LIKE 1,100 HOURS ON AVERAGE.
>> LIKE I SAID, SOME ARE 300 THAT I THINK WOULD BE MORE AND SOME ARE LESS, THAT WOULD BE PROBABLY 100 OF ASKING ONE QUESTION AND I'M JUST TRYING TO UNDERSTAND.
>> EXACTLY, SOME QUESTIONS, IF YOU'VE GOT ONE OR TWO.
ONE SPECIFIC OBJECTIVE THAT WE SHOULD GO CENTER BUT THERE'S STILL AMOUNT OF OVERHEAD FOR EVERY AUDIT JUST TO GET IT STARTED AND TO DOCUMENT IT TO MEET THE GAGAS STANDARDS.
>> THEN ANOTHER QUESTION THAT I HAVE.
YOUR AUDITS ARE NOT NECESSARILY TO PICK OUT BAD THINGS, THEY'RE ACTUALLY, IF YOU'RE STARTING A NEW OFFICE TO SET UP TRAJECTORIES IN WHICH YOU CAN MAKE ADJUSTMENTS IN ORDER TO GET SUCCESS.
BECAUSE I HAD A STARTUP OFFICE IN DIST ONE TIME AND I HAD THE AUDITOR COME IN JUST TO MAKE SURE MY PROCESSES WERE IN PLACE, EITHER FINANCIALLY OR ACCOUNTABILITY OR COMPLIANCE TO MAKE SURE.
>> WE CAN DO THAT. YES. [OVERLAPPING] THAT WOULD BE THE GOAL,
[01:25:04]
BUT SOMETIMES PEOPLE DON'T WANT TO, THEY'D RATHER HAVE TO PUT THEIR PROCESSES IN PLACE AND THEN COME BACK AND HAVE US LOOK AT IT TO SEE IF THERE'S ANY WEAKNESSES IN THAT PROCESS.>> I GUESS WE'LL HAVE THE DISCUSSION AT COUNCIL LEVEL ON 2:00 BUT TO LEAVE IT THERE JUST BECAUSE IT'S A NEW OFFICE AND TRY TO UNDERSTAND WHAT IS GOING ON AND TO UNDERSTAND BUDGET ASSIGNMENTS, ACCOUNTABILITY.
ARE PEOPLE LISTENING? ARE THEY ACTUALLY CALLING IN UNDERSTANDING WHAT THE TEMPERATURE IS AROUND IT RIGHT NOW? I THINK IT'D BE A GREAT DISCUSSION TO HAVE, AND I'M SURE I PROBABLY WILL HAVE IT AT THE COUNCIL LEVEL, BUT I SEE NO REASON NOT TO LEAVE IT.
IF YOU WANTED MY OPINION ON THAT ONE, AND THEN THERE ARE SOME OTHER ONES THAT I DON'T REALLY UNDERSTAND WHY THEY'RE ON HERE, BUT YOU'RE THE PROFESSIONAL AND THE EXPERT, SO I WOULD LEAVE THEM AS THEY ARE.
>> THANK YOU. VICE CHAIR, I'VE GOT A COUPLE OF COMMENTS ON THIS, AND I APPRECIATE YOU ADDING IN THE ADDITIONAL COLUMN AS REQUESTED BY A COUPLE OF COUNCIL MEMBERS.
SO I'M GOING TO START AT THE END AND WORK BACKWARDS.
I APPRECIATE MY COLLEAGUES INTERESTS IN THE STREET AND PAVING DESIGN MANUAL, AND THAT'S GOING TO BE SOME EXCITING READING FOR YOUR AUDITOR'S I'M SURE [LAUGHTER] THEY CAN STAY AWAKE THROUGH IT.
WE'VE CAUGHT CONTRACTORS IN MY DISTRICT WHO ARE USING ANTIQUATED VERSIONS OF THE MANUAL IN DESIGNING OUR STREETS, AND I'VE SENT THAT UP TO CITY STAFF WHO WERE HORRIFIED ABOUT IT, AND MADE HIM FIX IT BUT I THINK IT'S A REAL ISSUE THAT I'VE SEEN PERSONALLY, SO THAT'S WHY I REQUESTED THAT.
DO YOU GUYS USE AN ARTIFICIAL INTELLIGENCE OR ANYTHING IN ANY OF YOUR REVIEWS? MOST OF THESE ARE VERY MUCH LIKE YOU'VE GOT TO DIG IN AS A HUMAN AND ASK A LOT OF QUESTIONS BUT I'M WONDERING ON AUDITS, THE 911 CALLS RECEIVED AND RESPONDED TO TIMELY, SIX, THE CANCELLATION OF BENEFITS FOR TERMINATED EMPLOYEES, AND THEN EVERYTHING UNDER NUMBER 12.
IF THERE WOULD BE A WAY WE COULD SAVE HOURS BY USING AI IN THAT ANALYSIS OR IF THAT'S A STANDARD PRACTICE IN AUDITING.
>> I WILL TELL YOU THAT AI IS STILL A FRONTIER IN AUDITING.
AT A CONFERENCE WE WENT TO THOUGH, HAD A SESSION ON POTENTIAL USES OF AI, BUT NONE OF THEM SEEM TO BE CONCRETE IN PUTTING IN PRACTICE YET, BUT THERE'S A LOT OF WORK BEING DONE THAT WAY.
A LOT OF THAT GETS MORE REPEATABLE AUDITS.
I COULD SEE WHERE OUR AUDITS ARE DIFFERENT THAN FROM A FINANCIAL AUDIT.
IT'S NOT THE SAME AUDIT BEING DONE, PROCEDURES DONE YEAR AFTER YEAR AFTER YEAR, AND FROM ONE CLIENT TO THE OTHERS.
EVERY AUDIT IS UNIQUE AND REQUIRES US TO DO SOME ANALYTICS OR RISK ASSESSMENT AND THEN DETERMINE WHAT THE CONTROLS ARE AND THEN DETERMINE HOW THE TEST TO ENSURE THOSE CONTROLS ARE WORKING.
SO IT'S A LITTLE BIT DIFFERENT BEAST, I WOULD SAY BUT WE ARE LOOKING AT GOING INTO CONFERENCES AND LEARNING HOW AI COULD YOU'RE HELP US.
WE DO USE ANALYTICAL SOFTWARE TO HELP US WHEN WE HAVE MASSES OF DATA.
>> I WOULD VERY MUCH WELCOME IN THE SPRING SOMETIME WHEN WE HAVE AN OPEN AGENDA TO HEAR ABOUT EMERGING TECHNIQUES AND AUDITS ON USING AI.
I THINK IT'S JUST FASCINATING AND WE'RE POSSIBLY LOOKING AT THAT AND OTHER PARTS OF THE CITY SO WOULD LOVE TO HEAR, EVEN IF YOU PRESENT IT AND DISMISS IT, IT'D BE NICE TO HEAR IT.
NUMBER 17 IS ON THE OFFICE OF HOMELESSNESS SOLUTIONS STRATEGY AND COORDINATION.
I APPRECIATE MY COLLEAGUES WHO RECOMMEND THIS ONE.
WILL THIS INCLUDE AN ANALYSIS OF HOW WE GO THROUGH OUR PROCUREMENT RFP PROCESS FOR OUR NON-PROFIT PARTNERS? AS I'VE HEARD A LOT OF CONCERNS FROM SOME OF OUR NON-PROFIT PARTNERS ON IT TAKING AN ORDINATE AMOUNT OF TIME TO GET THEIR FUNDING, WHICH ENDS UP COSTING A LOT MORE MONEY FOR THEM, AND FOR US ULTIMATELY, WILL THIS INCLUDE AN ANALYSIS OF THAT?
>> IT'S HARD FOR ME TO SAY EXACTLY WHAT IT'S GOING TO INCLUDE SINCE IT HASN'T STARTED YET, BUT ONCE WE HAVE SOME POTENTIAL OBJECTIVES WE'LL COME BACK BECAUSE WE'VE DONE IN THE PAST AND VISIT WITH THE COUNCIL MEMBERS INTERESTED IN THE PROJECT, AND TRY TO GET THEIR INPUT INTO WHAT THE POTENTIAL OBJECTIVES COULD BE.
>> IF I WANTED TO ENSURE THAT WAS INCLUDED IN THIS AUDIT,
[01:30:04]
WHAT WOULD YOU NEED FROM COUNCIL, LIKE AT THE HORSESHOE AND WHEN WE HAVE THIS AS AN AGENDA ITEM WOULD YOU ACTUALLY NEED US TO STATE THAT AS A COUNCIL [OVERLAPPING].>> IF THAT'S WHAT YOU WANT, I CAN ADD IT TO THIS TO WHAT I SENT TO THE COUNCIL AGENDA ITEM.
>> THANK YOU. THEN LAST I'LL JUST PIGGYBACK ON VICE CHAIR BLACKMUN'S COMMENT ON WHEN AUDITS ARE APPROPRIATE, AND I VIEW AN AUDIT NOT AS NECESSARILY A GOT YOU SITUATION, BUT AS AN OPPORTUNITY TO SHOW THAT YOUR DEPARTMENTS WORKING AND THAT YOU'RE ON THE RIGHT TRAJECTORY.
FRANKLY ON NUMBER 2, I FEEL LIKE IT'S THE TIME FOR IT, AND I DON'T HAVE A PROBLEM WITH IT, AND SO I'LL CONTINUING KEEPING IT ON THE AUDIT PLAN. THANK YOU.
>> LOOKS LIKE CHAIRWOMAN MENDELSON.
>> THANKS. I JUST WANTED TO FOLLOW UP WITH A QUESTION OR TWO.
YOU HAVE MORE ITEMS ON HERE THEN WHAT YOU HAVE POSSIBLE WORK HOURS. IS THAT CORRECT?
>> SO HOW ARE YOU GOING TO PRIORITIZE THESE?
>> WELL, THIS TIME THE FIRST TIME I'VE PUT IN GREEN WHAT WOULD BE MY PRIORITIES AND THEN THE OTHERS WOULD BE LATER ON IN THE YEAR.
A LOT OF TIMES, WE'LL CARRY OVER ON IT JUST LIKE NOW WE'RE HAVING A DELAY IN GETTING THE AUDIT PLAN APPROVED SO I STILL HAVE AUDIT ENGAGEMENTS THAT WERE APPROVED ON THE PRIOR PLAN THAT I COULD USE WHILE I'M WAITING TO GET THE NEXT PLAN APPROVED SO THAT PROVIDES SOME FLEXIBILITY AND PROVIDE SOME HELP WITH UNCERTAINTIES.
AGAIN, I MENTIONED BEFORE, WHEN YOU START AN AUDIT, YOU MAY FIND OUT THAT THERE'S JUST NOT A GOOD PRACTICAL TIME TO CONDUCT AN AUDIT AND SO WE NEED TO MOVE ON TO THE NEXT PROJECT.
I HAVE FOUND IT TO BE HELPFUL TO MANAGE YOUR AUDIT PLAN BY HAVING MORE AUDITS THAN COULD BE DONE.
>> WELL, I KNOW SOMETIMES YOU GET STUCK BECAUSE THE DEPARTMENT IS NOT AS RESPONSIVE AS YOU MIGHT HAVE HOPED FOR.
I KNOW WE HAD THAT SEVERAL TIMES WHILE I WAS CHAIR.
DO YOU THINK THERE'S A VALUE IN PRIORITIZING BY RISK?
>> WELL, IT SHOULDN'T BE ON THE PLAN.
YES, I GUESS THAT WOULD BE AN ANSWER BECAUSE I'M TRYING TO AT FIRST I WAS GOING TO SAY THE PLAN IS TRYING TO MAP IN THE BACK OF THIS ON THE PLAN, YOU HAVE MY PART RISK PRIORITIZATION AND WE MAPPED THE AUDITS OUT TO THAT RISK PRIORITIZATION, BUT WE DON'T DO ALL HIGH RISK, WE DO SOME MEDIUM-RISK AND SOME LOWER RISK.
THE PLAN ON MEANS TOWARDS THE HIGHER RISK AUDITS AS YOU WILL SEE, THE CHECK MARKS AND THE CIRCLES ARE ALL TOWARD THE TOP OF THE MATRIX.
>> CHAIRMAN MORENO, DO YOU HAVE ANOTHER FOLLOW-UP?
>> YES, THANK YOU, CHAIR. I'M FOLLOWING UP ON COUNCIL MEMBER MENDELSON'S COMMENT.
WE UNDERSTAND HOW MANY AUDITS ARE BEFORE YOU AND KNOWING HOW MANY HOURS IT DOES TAKE TO PROVIDE THAT INFORMATION, HOW CAN WE ASSIST WHEN EITHER A STEADY DEPARTMENT OR AN OUTSIDE PARTNER IS DELAYING THE DELIVERY OF INFORMATION OR PROVIDING THAT INFORMATION IN A MANNER THAT IS NOT PRESENTED TO YOU? WHERE WE CAN JUST TAKE IT IN AND WORK FROM IT, BUT YOU'RE YOU'RE HAVING TO PULL IT APART TO GET TO GATHER THE INFORMATION THAT YOU REALLY NEED.
WHAT I'M ASKING IS, ARE THERE TIMES WHERE YOU ARE NEEDING ASSISTANCE TO GET INFORMATION MORE QUICKLY OR TO GET INFORMATION PERIOD TO YOU WHERE WE CAN BE OF ASSISTANCE?
>> WELL, I WOULD SAY THE CITY MANAGER HAS BEEN VERY HELPFUL IN PROVIDING THE CONTROLLER AND THE INTERNAL CONTROL GROUP WITHIN THE CONTROLLER'S OFFICE THAT WHEN WE DO RUN INTO SOME DELAYS THAT ARE CONSIDERED TO BE EXCESSIVE, WE CAN COORDINATE WITH THE CITY CONTROLLER'S OFFICE, AND THE CITY MANAGER, AND THEY ARE USUALLY PRETTY QUICK TO RESPOND ONCE WE ESCALATE.
>> GLAD TO HEAR THAT, AND THEN MAYBE IT'S MORE SO ON THOSE OUTSIDE DEPARTMENTS.
WHEN IN PARTICULAR THE POINT IN TIME COUNT THAT WE DISCUSSED ON THE HOMELESSNESS SIDE IS, IF YOU EVER NEED ASSISTANCE OR NEED OUR ENGAGEMENT, PLEASE LET US KNOW SO THAT WE CAN TRY TO GET THAT INFORMATION TO YOU MORE QUICKLY SO THAT YOU CAN WRAP THOSE UP BECAUSE WE DO KNOW THAT TIME CLOCK THAT YOU'RE UP AGAINST.
>> I DON'T SEE ANY OTHER LIGHTS.
THANK YOU FOR THE GREAT AUDIT PLAN AND FOR BRIEFING US TODAY.
WE'RE GOING TO END ON ITEM K, THE 2025 LEGISLATIVE PRIORITIES FROM THE OFFICE OF GOVERNMENT AFFAIRS.
[01:35:04]
KERRY PATIENTLY WAITED THROUGH THIS WHOLE MEETING. THANK YOU.DOES ANYONE HAVE QUESTIONS FOR OUR LEGISLATIVE DIRECTOR? I GUESS NOT. THANK YOU.
>> I NEED TO KNOW IF YOU RECOMMEND THIS PLAN TO THE COUNCIL OR JUST USE LAST MONTHS RECOMMENDATION AND LEAVE IT AT THAT.
IT'S FIRST TIME I'VE EVER HAD A PLAN REFERRED BACK, SO I DON'T KNOW EXACTLY THE PROCESS.
>> WELL, THERE HAVEN'T BEEN ANY CHANGES OTHER THAN YOU JUST PUTTING SOME CLARIFICATIONS ON THERE, CORRECT?
CITY ATTORNEYS DO WE HAVE TO MAKE A RECOMMENDATION TODAY? [NOISE] BUT WE CAN IF WE CHOOSE.
>> WELL, I WILL ASK FOR A MOTION THEN IF ONE OF MY COLLEAGUES WOULD LIKE TO MAKE ONE.
>> I'LL MOVE TO RECOMMEND IT WITHOUT ITEM NUMBER 2.
>> DO WE HAVE A SECOND? I KNOW. YOU'RE SECONDING THAT.
>> ITEMS 2 WOULD JUST COME BACK LATE AT A LATER DATE.
>> IT WOULD BE THE AUDIT PLAN RECOMMENDING GOING FORWARD WITH ITEM 2 TAKEN OUT.
>> BUT THAT DISCUSSION WILL BE BROUGHT BACK UP AT COUNSELING.
>> IT WOULD BE BROUGHT BACK UP AT COUNCIL.
>> ALL THOSE IN FAVOR SAY AYE.
>> THAT'S TWO, ALL THOSE OPPOSED, NAY.
FAILS. OKAY. DO WE HAVE ANOTHER MOTION?
>> [NOISE] MOTION TO REFER TO CANCEL?
>> WE HAVE A SECOND. [LAUGHTER] CAN I SECOND THAT?
>> I'LL SECOND THAT. ALL THOSE IN FAVOR SAY AYE.
[OVERLAPPING] WE GOT THREE. MOTION CARRIES.
THE AUDIT PLAN HAS RECOMMENDED A COUNCIL [OVERLAPPING]M AS IS, WITH THAT BEING SAID, IT'S 02:46 PM, THIS MEETING IS ADJOURNED.
EVERYONE WHO'S GOING TO ATLANTA HAVE A SAFE TRIP.
* This transcript was compiled from uncorrected Closed Captioning.