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LITTLE HUNGRY. ALL RIGHT, EVERYONE, WELCOME.

[Council Government Performance & Financial Management Committee on March 25, 2024]

[00:00:03]

IT IS MARCH 25TH, 2024.

1:01 P.M.

AND I'LL CALL THIS MEETING OF THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE TO ORDER.

FIRST ORDER OF BUSINESS IS OUR MINUTES FROM FEBRUARY 26TH, 2024.

CAN I GET A MOTION? SECOND. ALL RIGHT. WE HAVE A MOTION A SECOND.

ALL THOSE IN FAVOR SAY AYE. CHAIR, I HAVE A COMMENT.

OKAY. THANK YOU.

SO ONE OF THE THINGS I WAS NOTICING WHEN I WAS PREPARING FOR THE MEETING IS THAT THE ENTIRE AGENDA IS 951 PAGES, AND OF THAT, 408 ARE THE MINUTES FROM OUR LAST MEETING.

AND SO I'M GOING TO DO THIS AT PUBLIC SAFETY.

BUT JUST AS A SUGGESTION, PERHAPS WE CAN INSTRUCT WITH THE CITY ATTORNEY'S APPROVAL, TO NOT INCLUDE THE ACTUAL PRESENTATIONS THAT WERE COVERED IN THE PREVIOUS MONTH, SINCE THEY'RE ALREADY LISTED ON THE MATERIALS FROM THE PREVIOUS MONTH AND ONLINE, AND JUST REFER THAT THIS BRIEFING WAS CONDUCTED AND WHATEVER ACTIONS WERE TAKEN OR NO ACTION WAS TAKEN.

BUT IT JUST SEEMS LIKE MY STAFF PRINTS THE ENTIRE THING, SO WE COULD PROBABLY SAVE SOME TREES.

THANK YOU. ANY COMMENTS? I GUESS.

DO WE HAVE AN ATTORNEY HERE TO TALK ABOUT WHAT IS REQUIRED BY LAW? AND BECAUSE MY THING IS, I DON'T PRINT OFF THE ENTIRE THING.

I JUST PRINT OFF THE IMPORTANT PAGES.

BUT I WOULD THINK IT'S FOR CONTEXT FOR ARCHIVING AND ETC., ETC., BUT OKAY.

DO YOU WANT TO COME UP TO THE FRONT? NO WORRIES.

THIS IS STEVE FREELAND WITH THE CITY ATTORNEY'S OFFICE, AND I APOLOGIZE, COMMITTEE MEMBERS, I'M PRETTY NEW TO THE CITY, AND I'M GOING TO HAVE TO RESEARCH THE QUESTION, BUT I ABSOLUTELY WILL TAKE IT AWAY AND GET AN ANSWER FOR YOU ABOUT WHAT WE CAN DO TO STREAMLINE THE MINUTES PACKAGE.

SO IT'S NOT SO.

VOLUMINOUS. THANK YOU.

AND WHAT I SHOWED WAS ACTUALLY I'M SORRY.

I'M SORRY. AND SO WHAT YOU COULD DO IS MAYBE PUT A LINK THAT SAYS AND IT JUMPS TO THE NEXT ONE.

SO THAT WAY IT DOESN'T PRINT IT OUT.

BUT THEN IF YOU'RE TRYING TO DO IT FOR ARCHIVAL, YES, THEN THAT'S ONE WAY TO DO IT.

YEAH I THINK I UNDERSTAND THE OBJECTIVE.

SO I'LL ABSOLUTELY LOOK INTO IT AND I'LL HAVE TO GET BACK TO YOU.

BUT OKAY. THANK YOU.

THANK YOU. SORRY, I JUST WANTED TO CLARIFY WHAT I SHOWED YOU WAS NOT INCLUDING THE MINUTES THAT.

THAT'S RIGHT. YOU DIDN'T WANT IT.

YOU DIDN'T WANT THE EXHIBITS FROM THE PREVIOUS MONTH TO BE THE PREVIOUS PART OF IT.

EXACTLY. BECAUSE WE ALREADY HAVE THIS MUCH FOR THIS MONTH.

YES. YES. OKAY. YEAH.

NO, I, I'M WAITING THROUGH IT WITH YOU.

SO I COMPLETELY UNDERSTAND THE ASK.

THANK YOU, THANK YOU I BLAME I BLAME JACK FOR ALL THAT PAPERWORK.

NO, IT'S GOOD INFORMATION.

BUT ANYHOW, SO THAT WAS JUST MY COMMENT ON THE MINUTES.

AND I DO SUPPORT APPROVAL.

ALL RIGHT LET'S GO AND TAKE THE VOTE.

ALL THOSE IN FAVOR SAY AYE.

ALL RIGHT. ANY OPPOSED? MOTION CARRIES. ALL RIGHT, NEXT ITEM.

I WAS INFORMED NOT VERY LONG AGO THAT OUR SPECIAL PRESENTERS ON ITEM A ARE UNABLE TO BE HERE.

SO WE'RE GOING TO MOVE STRAIGHT INTO ITEM B, THE 2023 EXTERNAL AUDIT PRESENTATION AND DISCUSSION.

TAKE IT AWAY. GOOD AFTERNOON, CHAIRMAN WEST.

GERRY KOWALSKI, CITY COMPTROLLER, AND I WOULD LIKE TO INTRODUCE TO MY RIGHT.

OH, LET ME MOVE IN A LITTLE.

SHERRY KOWALSKI, CITY COMPTROLLER.

AND TO MY RIGHT, I WOULD LIKE TO INTRODUCE LANCE SEEHORN, THE ASSISTANT CITY COMPTROLLER, AND JENNIFER WEST, THE FINANCIAL REPORTING MANAGER IN THE CITY COMPTROLLER'S OFFICE.

AND THEN I WILL LET OUR AUDIT PARTNER INTRODUCE HERSELF AND TAKE IT AWAY.

ALL RIGHT. I JUST SAY, IF YOU CAN MOVE THE MICROPHONE REALLY CLOSE, IT IS HARD TO HEAR UP HERE.

OKAY. GOTCHA.

HOW'S THIS? BETTER. OKAY, GREAT.

MY NAME IS SARAH DEMPSEY.

I'M HERE TO TALK TO YOU TODAY ABOUT THE FISCAL YEAR 2023 AUDIT.

WE HAVE THE AUDIT RESULTS.

NEXT SLIDE OR CAN I.

NO. OKAY. AND THEN ONE MORE CLICK.

SO I'M THE PARTNER IN CHARGE ON THE ENGAGEMENT, JEFF JUAREZ, THE SENIOR MANAGER.

I'VE GOT OVER 20 YEARS OF EXPERIENCE IN PUBLIC ACCOUNTING.

A LOT OF THAT EXPERIENCE ACTUALLY ALL OF IT IS IN STATE AND LOCAL GOVERNMENT.

[00:05:04]

SO OUR FIRM SPECIALIZES IN LOCAL GOVERNMENT AUDITS, DOES A LOT OF CITIES ACROSS TEXAS, ACROSS THE NATION.

SO WE'RE REALLY HAPPY TO BE HERE.

I WAS A MEMBER OF THE AICPA STATE AND LOCAL GOVERNMENT EXPERT PANEL, AND I'M OUT OF THE DALLAS OFFICE.

OUR ENTIRE TEAM IS IS OUTSIDE OF DALLAS.

OUR OFFICE IS RIGHT ACROSS FROM THE PEROT.

NEXT SLIDE. SO THIS IS OUR ENGAGEMENT TEAM.

YOU CAN SEE WE'VE GOT JEFF AND I.

BUT THEN WE ALSO HAVE SPECIALISTS THAT I WANTED TO PUT UP HERE.

WE HAVE AN IT ADVISORY SPECIALIST THAT HELPS US EVALUATE THE IT GENERAL CONTROLS.

WE ALSO HAVE A DATA ANALYTICS TEAM BECAUSE THERE'S SO MUCH INFORMATION RUNNING IN AND OUT OF THE CITY, WHETHER IT'S DISBURSEMENTS OR PAYROLL, LOTS OF TRANSACTIONS, GENERAL LEDGER DETAIL, WE HAVE TO USE DATA ANALYTICS TO HELP US SORT THROUGH THAT DATA SO THAT IT CAN PULL OUT THOSE UNUSUAL ITEMS. SO WE HAVE A DATA ANALYTICS SPECIALIST IT ADVISORY GROUP.

AND THEN WE ALSO USE COMPANIES.

SO THOSE ARE MINORITY AND WOMEN OWNED BUSINESSES THAT ASSIST US DURING THE AUDIT PROCESS AS WELL.

CPAS FROM OTHER FIRMS. NEXT SLIDE. SO THIS PIECE IS OUR AUDIT TESTING.

THIS IS WHERE WE'RE REQUIRED TO LET YOU KNOW WHAT THOSE SIGNIFICANT RISKS ARE WHEN WE'RE GOING THROUGH THE AUDIT PROCESS.

THE FIRST ONE AND IT'S A RISK EVERYWHERE IS MANAGEMENT OVERRIDE OF CONTROLS.

AND WHAT THIS IS IS US MAKING SURE THAT CONTROLS ARE IN PLACE WHERE MANAGEMENT CANNOT MANIPULATE THE FINANCIAL STATEMENTS.

SO WE'RE LOOKING AT JOURNAL ENTRIES THAT ARE COMING IN AND OUT AND WHO'S APPROVING THOSE AND WHAT BACKUP IS PROVIDED WHEN THOSE JOURNAL ENTRIES ARE BEING MADE.

SO I'VE GOT TO THE LEFT IS THE FINANCIAL STATEMENT LEVEL RISK.

AND THEN TO THE RIGHT ARE THE PROCEDURES THAT WE PERFORM.

AND SO ANOTHER RISK AREA ACROSS ALL LOCAL GOVERNMENTS REALLY IS IMPROPER REVENUE RECOGNITION.

AND WHERE WE SEE THAT IS FOR DWU SANITATION AIRPORT.

THIS WOULD BE YOUR FUNDS WHERE MAYBE REVENUE WOULD BE OVERSTATED TO GET A BETTER BOND RATING.

SO THAT'S REALLY OUR RISK THERE IS MAKING SURE THAT REVENUE WOULD NOT BE OVERSTATED TO TO GET A BETTER BOND RATING.

SO WE'RE TESTING THE THE TRANSACTIONS WITHIN THOSE CYCLES FOR THAT RISK.

THE NEXT ONE IS IMPROPER GRANT REVENUE AND RECEIVABLES AND EXPENDITURES.

AND THIS IS MORE OF A COMPLEXITY RISK.

THIS IS BECAUSE IT IS DECENTRALIZED.

THERE ARE A LOT OF DEPARTMENTS HANDLING THE GRANTS.

AND THEN JUST THE REGULATIONS THAT ARE THAT ARE OVER THE GRANT PROCESS, IT CAN BE DIFFICULT TO EVALUATE WHAT'S ALLOWABLE, WHAT'S UNALLOWABLE.

SO WE CONSIDER THAT A SIGNIFICANT RISK FOR THE CITY AND SPEND A LOT OF TIME WITH THE STATE AND LOCAL, STATE AND FEDERAL GRANT PROCESS AS WELL.

AND THEN WE HAVE IMPROPER REVENUE RECOGNITION ACROSS ALL THE FUNDS AS WELL.

SO NOT JUST THE ENTERPRISE FUNDS, NOT JUST DWU AND AIRPORT.

WE ALSO LOOK AT IT, YOU KNOW, WITHIN THE GENERAL FUND, JUST MAKING SURE THAT THE TRANSACTIONS ARE ACTUALLY THERE, THAT WE'RE SEEING THE RECEIPTS AND THAT IT'S NOT JOURNAL ENTRIES THAT THAT HAVE BEEN MADE.

ALSO CAPITAL ASSETS, THERE ARE A LOT OF PROJECTS GOING ON ACROSS THE CITY.

SO WE LOOK AT THE MAJOR PROJECTS THAT ARE HAPPENING.

WE'RE LOOKING AT THE BID PROCEDURES, THE PROCUREMENT PROCESS, MAKING SURE THAT THOSE CAPITAL ASSETS EXIST AND THAT THEY'RE BEING PROPERLY RECORDED AND ACCOUNTED FOR.

WE ALSO HAVE LONG TERM LIABILITIES AS A RISK, JUST MAKING SURE THAT ALL THOSE LONG TERM LIABILITIES ARE CAPTURED IN THE FINANCIAL STATEMENTS.

FOR EXAMPLE, A DEBT ISSUANCE IS BEING PROPERLY ACCOUNTED FOR.

WE ALSO EVALUATE ESTIMATES.

SO THERE ARE ESTIMATES WITHIN YOUR FINANCIAL STATEMENTS.

AND A LOT OF THOSE ARE THIRD PARTY ACTUARIAL RESULTS.

SO THERE ARE ASSUMPTIONS WITHIN THOSE ACTUARIAL CALCULATIONS THAT WE USE TO EVALUATE THE ESTIMATES THAT ARE THAT ARE IN YOUR FINANCIAL STATEMENTS. THERE'S ALSO AN ESTIMATE THAT'S REFERRED TO AS AN ALLOWANCE FOR DOUBTFUL ACCOUNTS, AND THAT'S MANAGEMENT'S ESTIMATE ON WHAT IS ACTUALLY COLLECTIBLE FROM THE RECEIVABLES THAT ARE ON THE BOOKS.

SO WE EVALUATE HOW MANAGEMENT RECORDS THEIR ALLOWANCE AND MAKE SURE THAT THAT'S REASONABLE AS PART OF OUR AUDIT PROCESS.

THIS LAST ONE IS THE LEASES.

SO YOU'LL SEE RIGHT TO USE ASSETS.

TWO YEARS AGO GATSBY 87 WAS IMPLEMENTED AND THAT WAS LEASES OVER BUILDINGS.

THOSE TANGIBLE ASSETS THOSE WERE RECORDED ON THE BALANCE SHEET.

THIS YEAR IT WAS SOFTWARE.

SO GATSBY 96 WAS IMPLEMENTED.

AND THAT WAS A BIG A BIG LIFT FOR THE CITY.

THIS IS EVALUATING SOFTWARE CONTRACTS ACROSS THE CITY TO SEE WHICH ONES ARE LONG TERM AND WHICH ONES SHOULD BE RECORDED AS LONG TERM LIABILITIES.

SO THAT WAS A MAJOR AUDIT AREA THIS YEAR AS WELL.

[00:10:04]

NEXT SLIDE. AND THEN INFORMATION TECHNOLOGY REFERRED TO THIS EARLIER WHERE WE HAVE OUR IT SPECIALISTS HELP US.

THIS IS REALLY CHANGE MANAGEMENT THE OPERATIONS WITHIN THE IT PROCESS.

WE'RE LOOKING AT GENERAL CONTROLS OVER IT.

SO THIS IS REALLY BASED AROUND HOW THE FINANCIAL STATEMENT AMOUNTS MAKE IT INTO YOUR FINANCIAL STATEMENTS.

SO THE CONTROLS OVER THE THE ACTUAL PROCESS OF THE JOURNAL ENTRIES AND MAKING SURE THAT THERE ARE PROPER APPROVALS WITHIN THE SYSTEM THAT PEOPLE AREN'T ABLE TO ACCESS THE SYSTEM.

THAT SHOULDN'T BE.

SO YOU'VE GOT ACCESS CONTROLS, LOGICAL SECURITY AND THEN CHANGE MANAGEMENT ARE KEY PROCESSES THAT WE'RE EVALUATING THERE.

WE ALSO LOOK AT THE INVESTMENTS AND THEN RISKS AND UNCERTAINTIES.

AND THEN.

NEXT WE HAVE SOME OTHER SOME OF THE OTHER AREAS THAT WE'RE TESTING.

WE'VE GOT OUR ANNUAL COMPREHENSIVE FINANCIAL REPORT, WHICH YOU SAW.

THAT'S OKAY. YOU CAN GO TO THE NEXT SLIDE.

SORRY. AND THE ANNUAL COMPREHENSIVE FINANCIAL REPORT WAS COMPLETED FEBRUARY 28TH.

SO I THINK THAT WAS THE THIRD OR FOURTH YEAR WE'VE HAD A FEBRUARY DATE ON THE FINANCIAL STATEMENTS IN A ROW.

WE'VE ALSO COMPLETED THE DDA AUDIT, AND THAT ONE WAS DONE, I THINK, IN JANUARY.

SO WE'VE GOT THOSE TWO AUDITS COMPLETED.

WE ARE COMPLETE WITH THE DWU AND AVI REPORTS.

ALL WE HAVE IS THE REP LETTER THAT'S LEFT.

SO THE ACTUAL WORK IS COMPLETED.

THE FACILITY PASSENGER FACILITY CHARGE REPORT IS COMPLETED NOW.

THESE STAY PENDING COMPLETION, BUT THIS WAS AS OF THE DATE THAT THE PRESENTATION WAS CREATED.

AND THEN WE'LL DO THE DALLAS CONVENTION CENTER NEXT MONTH.

THAT'S A 12/31 YEAR END.

SO THAT'S WHY IT'S A LITTLE BIT LATER.

NEXT SLIDE. SO THIS IS THE FINANCIAL STATEMENT AUDIT RESULTS.

YOU HAVE AN UNMODIFIED OPINION ON YOUR FINANCIAL STATEMENTS.

SO OUR OPINION IS AT THE BEGINNING OF THE REPORT.

AND IT WALKS THROUGH THE BASIS OF OUR OPINION, WHAT THAT OPINION IS AND WHAT WE'RE GIVING OUR OPINION OVER.

THERE ARE SOME MATERIALS WITHIN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT THAT ARE UNAUDITED.

THAT WILL BE YOUR INTRODUCTORY SECTION WHERE YOU'VE GOT THE LETTER, THE TRANSMITTAL LETTER, THE ORG CHART SHOWING THAT YOU GOT THE GFOA CERTIFICATE IS IN THE INTRODUCTORY SECTION. BUT THEN AT THE BACK IS THE STATISTICAL SECTION.

AND THAT'S UNAUDITED AS WELL.

SO OUR OPINION WALKS THROUGH WHAT IS AUDITED AND WHAT'S UNAUDITED.

AND IT'S AN UNMODIFIED OPINION ON THOSE BASIC FINANCIAL STATEMENTS.

SO THE FINANCIAL STATEMENTS BEFORE THE NOTES AND THE NOTE DISCLOSURES, THERE WERE NO MATERIAL WEAKNESSES IDENTIFIED DURING THE COURSE OF THE AUDIT.

THAT WOULD BE AN EXAMPLE WOULD BE IF WE FOUND A MATERIAL ERROR DURING THE COURSE OF THE AUDIT AND HAD TO PROPOSE AN ADJUSTMENT TO THE FINANCIAL STATEMENTS, AND THEN NO SIGNIFICANT DEFICIENCIES TO REPORT.

AND THOSE ARE JUST CONTROL ERRORS THAT WOULD BE BELOW A MATERIAL WEAKNESS, BUT STILL SIGNIFICANT ENOUGH TO IMPACT A USER OF THE FINANCIAL STATEMENTS.

IF WE HAD FOUND A SIGNIFICANT DEFICIENCY OR A MATERIAL WEAKNESS, YOU WOULD HAVE A SEPARATE REPORT IDENTIFYING THOSE.

AND THEN WE NOTED NO NONCOMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS AS WELL.

AND NONCOMPLIANCE REFERS TO LAWS, REGULATIONS AND GRANT AGREEMENTS.

I'VE GONE THROUGH SOME OF THESE.

THIS IS THE REQUIRED COMMUNICATIONS THAT WE'RE REQUIRED TO HAVE WITH YOU AS THOSE CHARGED WITH GOVERNANCE.

AGAIN, NO AUDIT ADJUSTMENTS.

IF THERE HAD BEEN, YOU WOULD HAVE SEEN AN INTERNAL CONTROL DEFICIENCY NOTED.

AND THAT REALLY JUST MEANS THAT THE FINANCIAL STATEMENTS THAT THE CITY PROVIDES FROM THE CONTROLLER'S OFFICE WERE TESTING THOSE BALANCES, AND WE'RE NOT HAVING TO MAKE ADJUSTMENTS.

AND IT'S UNUSUAL TO NOT HAVE AUDIT ADJUSTMENTS.

SO IT SPEAKS HIGHLY TO YOUR TO YOUR TEAM.

THE MANAGEMENT REPRESENTATION LETTER IS SOMETHING THAT WE RECEIVE ON THE DAY THAT WE ISSUE.

AND IT'S FROM MANAGEMENT.

AND IT LETS US KNOW FROM THEM THAT THEY'VE GIVEN US EVERYTHING THAT WE NEED TO TO COMPLETE THE AUDIT, THAT NOTHING'S BEEN WITHHELD OR NOT TOLD TO US.

AND THEN I MENTIONED THIS EARLIER, WELL BEFORE THAT IS AUDITOR INDEPENDENCE.

WE'RE INDEPENDENT AS A FIRM AND AS A TEAM.

THE OTHER INFORMATION I MENTIONED EARLIER IS WHAT'S UNAUDITED WITHIN THOSE FINANCIAL STATEMENTS.

JUST SO THAT YOU'RE AWARE, WE DO READ THE MDNA, WE DO LOOK AT THE REQUIRED SUPPLEMENTARY INFORMATION AND TIE IT BACK TO OUR AUDIT PROCEDURES.

BUT IT'S NOT A SEPARATE AUDIT.

AND THEN I'VE TALKED ABOUT THE MANAGEMENT'S ESTIMATES EARLIER.

WE DO EVALUATE THOSE ESTIMATES TO MAKE SURE THAT THEY'RE REASONABLE.

AND SO GOING THROUGH THE FINANCIAL HIGHLIGHTS LET ME PULL UP MINE SINCE IT'S A LITTLE EASIER TO SEE.

[00:15:09]

SO LOOKING AT THE GOVERNMENT WIDE FINANCIAL STATEMENTS, THIS SLIDE IS IN MILLIONS.

AND THE GOVERNMENTAL ACTIVITIES AND BUSINESS TYPE ACTIVITIES ARE THE TWO SECTIONS WITHIN THE STATEMENT.

THOSE GOVERNMENT WIDE FINANCIAL STATEMENTS ARE ON A FULL ACCRUAL BASIS.

SO IT'S TAKING YOUR GOVERNMENTAL FUNDS AND CONVERTING THEM TO FULL ACCRUAL.

THEY'RE ON A MODIFIED CASH BASIS.

SO. WHEN YOU'RE LOOKING AT YOUR GOVERNMENTAL ACTIVITIES, YOU'LL SEE THAT THE CHANGE IN NET POSITION WAS 490 MILLION.

YOUR TOTAL NET POSITION AND YOUR GOVERNMENTAL ACTIVITIES WAS A DEFICIT OF 332 MILLION, WHICH DID INCREASE FROM PRIOR YEAR.

PRIOR YEAR WAS A DEFICIT OF 822 MILLION, AND THEN ENDING UNRESTRICTED NET POSITION WAS A $4.4 BILLION DEFICIT, AND CAPITAL ASSETS WAS 5.2 BILLION.

LOOKING AT YOUR BUSINESS TYPE ACTIVITIES, THESE ARE DWU AVIATION.

THESE ARE MOSTLY YOUR ENTERPRISE FUNDS.

SO YOU HAD A CHANGE IN NET POSITION OF 269 MILLION.

A TOTAL NET POSITION FOR THOSE FUNDS IS 4 BILLION.

AND THEN ENDING UNRESTRICTED NET POSITION WAS A DEFICIT OF 167 MILLION.

AND THEN CAPITAL ASSETS IS 7.8 BILLION.

THE NEXT SLIDE IS YOUR PROPERTY TAX RATE AND DEBT.

AND SO LOOKING AT THIS YOU CAN SEE THAT YOUR TAX RATE HAS DECREASED ACROSS THE THE LAST FIVE YEARS.

THIS IS REALLY SHOWING YOU A TREND ANALYSIS OF WHAT THE TAX RATE IS DOING AS LONG AS AS WELL AS THE DEBT.

SO YOU CAN SEE THAT THE GENERAL FUND, YOUR MNO TAX RATE HAS DECREASED AS WELL AS YOUR DEBT SERVICE FUND.

FOR THE TAXABLE ASSESSED VALUATION.

YOU CAN SEE THAT THAT'S CONTINUING TO INCREASE.

AND THEN YOUR GEO BONDS IN BILLIONS IS THE 1816.

SO THAT HAS CONTINUED TO INCREASE AS WELL.

THIS LAST NUMBER IS YOUR DEBT SERVICE EXPENDITURES AS A PERCENTAGE OF NON CAPITAL EXPENDITURES.

YOU CAN SEE THAT THAT 16.1% THIS YEAR.

AND IN PRIOR YEAR IT WAS 20.6%.

SO YOU DID SEE A DECREASE IN YOUR DEBT SERVICE EXPENDITURES AS COMPARED TO THOSE NON CAPITAL EXPENDITURES.

SO WHAT WE DO ON THIS SLIDE IS SHOW YOU FIRST CITY OF DALLAS IS THE FIRST BAR GRAPH.

AND YOU CAN SEE WHAT 2023 LOOKS LIKE.

AND THEN COMPARED NINE YEARS AGO TO 2014.

AND THIS IS THE DEBT SERVICE COMPONENT OF YOUR TAX RATE.

SO IN 2023 IT WAS 27.6%.

AND THEN IN 2014 IT WAS 30%.

SO YOU CAN SEE THAT THAT'S DECLINED IN A TEN YEAR PERIOD.

BUT WE ALSO SHOW YOU WHAT SOME OF THE OTHER MAJOR CITIES IN TEXAS LOOK LIKE.

SO YOU HAVE SAN ANTONIO, HOUSTON, FORT WORTH AND AUSTIN TO COMPARE TO ON THIS CHART.

SAN ANTONIO'S ACFR FOR 2023 WASN'T OUT.

SO THIS IS A 2022 VERSE 2014 COMPARISON.

AND YOU CAN SEE THAT THEY HAVE ABOUT 38% OF THEIR TAX RATE COMPONENT IS IS THE DEBT SERVICE FUND.

AND THEN THE OTHERS ARE PRETTY COMPARABLE TO THE CITY OF DALLAS.

YOU'VE GOT 27.8 AND THEN 20.7 FOR FORT WORTH AND AUSTIN.

THE NEXT SLIDE IS A BAR GRAPH SHOWING YOU THAT DEBT SERVICE EXPENDITURES AS A PERCENTAGE OF YOUR NON CAPITAL EXPENDITURES.

A FEW SLIDES PRIOR, YOU COULD SEE THAT CITY OF DALLAS HAD GONE FROM 20.6% LAST YEAR TO 16.1% THIS YEAR.

SO A SIGNIFICANT CHANGE THERE.

AND THEN THIS YEAR, 16.1 IN 2014, THE DEBT SERVICE EXPENDITURES AS A PERCENTAGE OF NON CAPITAL EXPENDITURES WAS 15.1%.

WE SAW THAT INCREASE THIS YEAR.

AND A LOT OF THAT HAS TO DO WITH THE COMMERCIAL PAPER THAT WAS PAID OFF IN 2023.

THAT'S DRIVING THAT CHANGE.

AND THEN YOUR NEXT, THE NEXT SLIDE IS ONE MORE.

ONE MORE. THE NEXT SLIDE IS THE GENERAL FUND.

AND SO THIS IS SHOWING YOU THAT TOTAL FUND BALANCE IS WAS 467 MILLION AT THE END OF 2023.

UNASSIGNED IS 386.7 MILLION.

[00:20:02]

YOUR GENERAL FUND EXPENDITURES ARE ABOUT 1.7 BILLION.

AND THAT UNASSIGNED GENERAL FUND BALANCE AS A PERCENTAGE OF YOUR EXPENDITURES IS 23%.

THIS YEAR. THE EXCESS.

IT'S A DEFICIENCY OF REVENUES AND UNDER EXPENDITURES.

AND THIS YEAR YOU CAN SEE IT'S A DEFICIT OF 50.6 MILLION.

AND WHAT THAT IS, IS IT'S REALLY AN ACCOUNTING TREATMENT AS A RESULT OF GASB 87 AND 96 THAT I REFERRED TO EARLIER.

FOR THE SLIDES, IT'S I THINK IT'S THE ONE RIGHT BEFORE THIS ONE.

IT'S THE ONE WITH GENERAL FUND AT THE TOP, ONE MORE. IT IS 15, BUT IT MIGHT NOT BE IN YOUR IT MIGHT NOT BE ON THE PRESENTATION.

THERE IT IS. THAT'S IT.

THANK YOU. SO FOR THIS ONE, I WAS REFERRING TO THE $50.6 MILLION DEFICIT BECAUSE IT DOES STAND OUT AS AS A BIG CHANGE.

AND REALLY THAT'S AN ACCOUNTING TRANSACTION FOR 2023 WITH GASB 87 AND 96 LEASES ARE REQUIRED TO BE PUT ON YOUR BALANCE SHEET.

BUT WHEN YOU'RE ACCOUNTING FOR LEASES, YOU HAVE YOUR CAPITAL OUTLAY EXPENDITURE THAT HAS TO GET RECORDED.

BUT THEN THE PROCEEDS FROM THE LEASE ARE BELOW THE LINE.

SO WHEN YOU'RE LOOKING AT THE FINANCIAL STATEMENTS, YOU'RE SEEING AN EXPENDITURE FOR ABOUT 83 MILLION, BUT YOU'RE NOT SEEING THE OFFSET OF THE PROCEEDS FROM THE LEASE. SO IF YOU BACK OUT THAT LEASE, THAT LEASE TRANSACTION, YOU WOULD HAVE A POSITIVE OF ABOUT $32 MILLION THIS YEAR.

SO IT REALLY IS AN ACCOUNTING TREATMENT.

OVERALL FUND BALANCE FOR THE GENERAL FUND DID INCREASE ABOUT 25 MILLION.

TRANSFERS IN AND OUT FOR 2023 IS A NET TRANSFER OUT OF 8.6 MILLION.

AND THEN THIS BAR GRAPH AGAIN, JUST A COMPARISON TO THE CITY FROM 2023 TO 10 YEARS AGO IN 2014, AS WELL AS WITH OTHER CITIES.

WE WANT TO SHOW YOU THE UNASSIGNED GENERAL FUND BALANCE AS A PERCENTAGE OF THOSE GENERAL FUND EXPENDITURES, SO YOU CAN SEE THAT YOUR UNASSIGNED FUND BALANCE IN 2023 IS 23% OF EXPENDITURES, WHEREAS IN 2014 IT WAS 11.8%.

SO THAT'S A SIGNIFICANT IMPROVEMENT.

HIGHLIGHTED HERE. AND AND YOU CAN SEE THE OTHER CITIES FOR COMPARISON RELATIVELY SIMILAR AS WELL.

AND THE NEXT SLIDE. THIS IS YOUR ENTERPRISE FUND.

SO GOING THROUGH AND LOOKING AT WHAT THE INCOME BEFORE TRANSFERS AND CONTRIBUTIONS IS FOR, FOR DWU, YOU HAVE 133 MILLION FOR THE CONVENTION CENTER, 48.2 MILLION, AIRPORT WAS 94.5.

AND THEN FOR SANITATION, THERE WAS A LOSS OF 8.5 MILLION THIS YEAR FOR YOUR TOTAL CAPITAL ASSETS, NET A MAJORITY OF THAT YOU CAN SEE IS IN DWU.

THAT'S ABOUT 6 BILLION, WITH 368 MILLION FOR THE CONVENTION CENTER, AND THEN 1.3 BILLION FOR YOUR AIRPORT.

SANITATION HAS ABOUT $71 MILLION IN CAPITAL ASSETS.

AND THEN FOR YOUR REVENUE BOND COVERAGE CALCULATIONS, YOU HAVE 2.26 FOR DWU, 3.78 FOR THE CONVENTION CENTER AND 2.25 FOR AIRPORT. SO YOU SAW AN INCREASE IN THOSE REVENUE BOND COVERAGE RATIOS AS WELL THIS YEAR.

AND THEN THE LAST SLIDE I HAVE FOR THE FINANCIAL HIGHLIGHTS IS YOUR INTERNAL SERVICE FUNDS LOOKING AT YOUR RISK DEFICIT? IT IS A DEFICIT OF $98 MILLION THIS YEAR.

AND YOUR RISK FUND'S TOTAL LIABILITIES IS $174 MILLION.

RISK FUND'S DEFICIT AS A PERCENTAGE OF YOUR TOTAL GENERAL FUND BALANCE IS 21% 20.95.

THE LANDFILL CLOSURE AND POST-CLOSURE LIABILITY THIS YEAR WAS 54 MILLION.

YOUR NET PENSION LIABILITY THIS YEAR DID INCREASE TO THAT 6.5 BILLION.

AND A LOT OF THAT IS BECAUSE IT'S CALCULATED AT 1231 22.

AND THE MARKET 1231 2022 WAS NOT FAVORABLE FOR ANYONE.

THE MARKET CONDITIONS WERE POOR.

SO YOU SAW THE INVESTMENT PIECE OF OF YOUR NET PENSION LIABILITY DECREASE.

AND THAT REALLY CAUSED AN INCREASE IN YOUR LIABILITIES THIS YEAR FOR YOUR NET PENSION.

AND THEN FOR YOUR OPEB, YOU SAW A DECREASE.

THIS YEAR IT WAS 208 MILLION.

[00:25:01]

AND THAT'S YOUR FINANCIAL HIGHLIGHTS.

I'M HERE TO ANSWER ANY QUESTIONS THAT YOU HAVE ABOUT THE AUDIT.

ANYTHING THAT I CAN HELP WITH.

THANK YOU SO MUCH FOR THAT.

AND I'M GOING TO START WITH VICE CHAIR BLACKMON.

THANK YOU FOR THIS.

SO IF YOU COULD WRITE A HEADLINE FOR THIS PRESENTATION, WHAT WOULD IT BE? AND I'LL LET YOU FINISH. YOU TAKE ANOTHER.

YEAH. LET ME. YEAH.

WHAT'S THE. BECAUSE I MEAN, I GUESS I DON'T WANT TO GET INTO THE DETAILS OF IT BECAUSE YOU WOULDN'T KNOW WHY A SANITATION AT A LOSS LAST YEAR VERSUS THIS YEAR.

BUT IF YOU COULD LOOK AT IT AS A WHOLE, COMPREHENSIVE, LIKE IF WE WERE A BUSINESS, WHAT WOULD YOU SAY THAT HEADLINE WOULD BE IF YOU HAD TO WRITE A STORY ON THIS? FOR A LOT OF IT, I THINK THE NET PENSION LIABILITY PLAYED A BIG FACTOR INTO IT.

I DON'T KNOW THAT THAT WOULD NECESSARILY BE THE HEADLINE, BUT I THINK A LOT OF THE CHANGES AT 12/31 CAUSE THE LIABILITIES TO INCREASE.

BUT OVERALL, IT SEEMED LIKE EVERYTHING WENT AS PLANNED.

WHEN YOU LOOK AT THE BUDGET VERSUS ACTUAL, WHICH WE SPEND A LOT OF TIME DOING, HOW THE CITY PLANNED FOR THE EXPENDITURES TO BE SPENT, WE SAW THAT, THAT THINGS FELL IN LINE WITH THAT ANY, ANY FUND IN PARTICULAR OR JUST THE CITY OVERALL AS A BUSINESS THAT THAT WOULD BE OF MORE INTEREST.

A LOT OF OUR WORK, YOU KNOW, IS WITH THE GENERAL FUND, DWU, AIRPORT, SANITATION.

SO I'M HAPPY TO ANSWER ANYTHING.

SO IT'S FAIR TO SAY THAT WE ARE NOT IN A FINANCIAL OR DISTRESS.

NO, NO. OKAY. IT'S IMPROVING.

AND I GUESS, SHERRY, I MEAN, I GUESS SOME OF THE STUFF THAT YOU CAN SEE THINGS TRENDING DOWNWARD IN A GOOD WAY, THAT WAS INTENTIONAL BY US AS AS A CITY AND AS A COUNCIL.

YES. LIKE OUR DEBT RATIO.

AND, I MEAN, IT'S STILL HIGH, BUT YOU CAN SEE IT'S NOT AS HIGH AS IT WAS IN PAST YEARS.

SO I GUESS, IS THAT A FOCUSED EFFORT IN WHICH TO THAT WE'VE THAT WE'VE GONE.

YES, I THINK WE'VE YES, WE'VE FOCUSED ON BEING CONTINUING TO BE FISCALLY RESPONSIBLE.

AND AS SARAH SAID, MAKING SURE OUR BUDGET AND OUR ACTUALS ARE IN ALIGNMENT.

THE OTHER THING THAT SINCE YOU ASKED ONE QUESTION, I'LL GIVE YOU AN ANSWER THAT I WANT TO GIVE, TOO.

AND ONE THING SARAH MENTIONED TO ME DURING THE AUDIT THE IMPROVEMENT AND THE INTERNAL CONTROLS AROUND CERTAIN AREAS.

SO SARAH, AND YOU CAN TALK HERE, ESPECIALLY AROUND PAYROLL.

I MEAN, SHE MENTIONED IT TO ME THAT IT WAS A MARKED DIFFERENCE FROM 2020 WHEN WE PUT IN WORKDAY UNTIL NOW.

AND THEN ALSO, IF YOU LOOK AT ONE OF THE AUDIT REPORTS THAT WAS RELEASED RECENTLY, WE AUDITED ABOUT 600 MILLION AND FOR PAYROLL, AND THERE WAS $131, THAT WAS AN ERROR.

SO 1/10,000 OF 1%.

SO AND SARAH, I DON'T WANT TO STEAL YOUR THUNDER OR ANYTHING ELSE YOU WANT TO SAY.

SURE. THAT'S WHAT WE'VE NOTICED ACROSS THE AUDIT.

THE PAYROLL PROCESS IMPROVEMENTS HAVE BEEN THERE.

ACCOUNTS PAYABLE.

WE WE REALLY DIVE INTO THOSE, ESPECIALLY WITH OUR DATA ANALYTICS, TO SEE THE TRENDS AND TO SEE THE UNUSUAL ITEMS. IT COULD BE DUPLICATE PAYMENTS.

IT'S JUST THE PROCESS IN GENERAL ON PAYROLL HAS JUST IMPROVED QUITE A BIT IN THE LAST FOUR YEARS.

WELL, AND I GUESS THAT IS THE IDEA OF DOING AN AUDIT IS TO FIGURE OUT WHERE YOU'RE NOT DOING WELL IN AND TO WORK TOWARDS DOING BETTER AT.

AND I ALSO WANT TO THANK STAFF AND JACK, THIS IS TO YOU IN YOUR GROUP AND TO EVERYBODY AND IN YOUR UNDERNEATH YOU IS THAT IT SEEMS LIKE THE CONTROLS ARE GOOD.

SO THAT MEANS, I MEAN, YOU DON'T EVER WANT THE HEADLINE TO BE, YOU KNOW, THERE'S BAD STUFF GOING ON AT CITY HALL WITH EMBEZZLEMENT OR WHATNOT.

RIGHT? AND SO THAT'S THE ONE THING THAT I CAN APPLAUD YOU GUYS THAT I DO FEEL THAT THAT Y'ALL ARE HONORABLE.

AND IT'S IN THAT THAT IS A GOOD FEELING.

AND SO THEN WE CAN FOCUS ON HOW DO WE GET A, A BALANCE SHEET THAT THEN WE CAN START BRINGING DOWN TAXES AND GIVING, YOU KNOW, INCREASING OUR SERVICES ETC..

SO I DO WANT TO APPLAUD THIS STAFF FOR YOU KNOW, IT WAS A GOOD AUDIT.

NOW IT'S TIME TO KIND OF GET IN.

AND AS WE'VE TALKED ABOUT FIXING SUMMIT, LIKE YOU TALKED ABOUT SHERRY FIXING SOME OF THE STUFF THAT MAY NEED ADDRESSING AND SO I HOPE THAT IS THERE ANYTHING THAT Y'ALL ARE GOING TO BE FOCUSING ON IN THE NEXT TWO YEARS? AND THAT'LL BE MY LAST QUESTION.

WE WILL. WE WILL CONTINUE TO WORK ON CONTROLS AND LOOK AT WHERE WE CAN MAKE IMPROVEMENTS.

I MEAN, I CAN GIVE YOU A SHORT EXAMPLE.

YOU KNOW, WE'RE LOOKING AT I HATE TO MENTION THIS, REALLY, BUT SHORT TERM RENTALS WE'VE ACTUALLY FOUND, I'VE ACTUALLY FOUND SOME SHORT TERM RENTALS THAT DIDN'T REGISTER BUT ARE TRYING TO SELL THEIR PROPERTY AND TALK ABOUT HOW MUCH AIRBNB INCOME THEY'VE MADE.

THE CITY ATTORNEY HAS ACTUALLY HELPED ME FILE CHARTER LIENS.

SO WE EVERY DAY LOOK AT STUFF.

BUT I HAVE I WOULD BE VERY REMISS IF I DIDN'T MENTION LANCE AND JENNIFER BECAUSE I INHERITED THEM.

[00:30:01]

AND THEY ARE, I'VE BEEN WORKING A LONG TIME.

I DON'T WANT TO SAY HOW LONG, BUT A REALLY LONG TIME.

AND THEY ARE SOME OF THE FINEST PEOPLE THAT I'VE EVER WORKED WITH, AND WE JUST HAVE A FABULOUS TEAM.

SO THE CREDIT REALLY, REALLY GOES TO THEM AND THEIR BAND OF ABOUT SIX OTHER PEOPLE THAT DO ALL OF THIS.

AND THANK YOU, THANK YOU.

THANK YOU FOR THAT.

ALL RIGHT. CHAIR MORENO.

CHAIR. MENDELSOHN.

THANKS SHERRY.

HI, SARAH. SO I DO HAVE A COUPLE QUESTIONS IF WE CAN START ON PAGE 14.

SURE. IT LOOKS LIKE ALL THE OTHER CITIES HAVE DECREASED.

WELL, I GUESS AUSTIN WENT UP A LITTLE BIT.

THEIR DEBT SERVICE.

AND THERE IN THE 12 TO 13%.

AND WE'RE AT 16. I'M JUST WONDERING IF THAT'S GIVING YOU ANY PAUSE OR IF YOU HAVE ANY THOUGHTS ON THAT.

NOT REALLY. LOOKING AT OTHER CITIES, IT CAN BE ANYWHERE FROM 12% TO 20%.

SO REALLY IT'S IN A GOOD RANGE.

AND WHEN WE LOOKED AT THIS AND EVALUATED WHAT CAUSED THE INCREASE THIS YEAR, THE PAYOFF OF THE COMMERCIAL PAPER DOES GET TREATED LIKE A PRINCIPAL PAYMENT.

SO IT DID CAUSE AN INCREASE AS OPPOSED TO REFUNDING IT, WHICH WOULD HAVE BEEN BELOW THE LINE AND WOULDN'T HAVE BEEN PICKED UP.

SO JUST THINGS LIKE THAT CAUSE A LITTLE BIT OF A DIFFERENCE.

ALSO, WHEN WE WERE EVALUATING HOW THE OTHER CITIES DID THEIR CALCULATIONS, SOME OF THEM DIDN'T PUT LIKE LEASE PRINCIPLES IN THEIRS.

SO IT LOOKS A LITTLE BIT LOWER THAN IT MIGHT ACTUALLY BE.

SO THERE WERE A FEW DISCREPANCIES BETWEEN HOW EACH CITY CALCULATES THIS, BUT NOTHING, NOTHING MATERIAL.

AND IT IS IN A GOOD RANGE THAT 12 TO 20%.

GREAT. SO IF WE GO TO PAGE 15 FOR THE GENERAL FUND, THIS WAS OF A SPECIAL INTEREST TO ME.

SO IT LOOKS LIKE WHEN YOU LOOK AT OUR GENERAL FUND EXPENDITURES, IT'S GONE UP 30% IN FIVE YEARS.

IS THAT CORRECT? HOW DOES THAT COMPARE WITH OTHER CITIES? GIVEN GIVEN THE MARKET, I WOULD HAVE TO GO BACK AND REALLY DO A CALCULATION.

BUT EVERYONE IS SEEING THIS THAT WE AUDIT.

THIS IS ON TREND WITH WITH EXPENDITURES ACROSS A FIVE YEAR PERIOD FOR SURE, WITH THE COST OF MATERIALS, WITH PAYROLL INCREASING PUBLIC SAFETY.

IT IS IT SEEMS TO BE ON PAR.

I IT DOESN'T STICK OUT AS ANYTHING TERRIBLY UNUSUAL, BUT I COULD GO BACK AND DEFINITELY DO A LITTLE MORE DIGGING INTO WHAT OTHER CITIES ARE SEEING ACROSS THE FIVE YEAR PERIOD, FOR SURE.

I WOULD REALLY LOVE TO SEE THAT.

OKAY, IF IT'S POSSIBLE.

AND OF COURSE, JUST IN THIS PAST YEAR, FROM 22 TO 23, WE SAW A 13% INCREASE IN OUR GENERAL FUND EXPENDITURE.

OKAY, SO CAN YOU EXPLAIN, LIKE IN THE SIMPLEST WAY POSSIBLE, WHY WE WOULD HAVE A $50 MILLION DEFICIENCY IN REVENUE WHEN WE'VE HAD SUCH A HUGE INCREASE IN REVENUE? YES. AND THAT IS REALLY RELATED TO THE LEASE TRANSACTION THIS YEAR FOR THE BODY CAMERAS.

IT'S A BODY CAM CAR CAM.

IT WAS IT WAS A BIG TRANSACTION FOR LEASES.

AND IF YOU BACK THAT OUT IT WOULD HAVE YOU AT A POSITIVE ABOUT 35 MILLION.

AND IT'S REALLY JUST THE WAY ACCOUNTING IS.

YES. BECAUSE IT'S A IT'S AN OUTFLOW.

IT'S AN EXPENDITURE BUT IT'S ALSO AN INFLOW.

THE INFLOW WAS BELOW THE LINE.

SO THIS NUMBER THAT I'M SHOWING THAT -50.6 MILLION, IF IT HAD BEEN ABLE TO BE NETTED IN THE ACCOUNTING WORLD YOU WOULD HAVE SEEN A POSITIVE THERE.

BUT IT'S JUST IT'S UNFORTUNATELY ACCOUNTING.

GREAT. AND THEN TO PAGE 18 WHEN WE'RE TALKING ABOUT THE NET PENSION LIABILITY, WHICH IS, YOU KNOW, A MASSIVE NUMBER. SO I'M WONDERING, I MEAN, YOU KNOW, YOU'RE SAYING THAT IT JUST HAPPENED TO BE A BAD DAY ON THE DAY THAT IT WAS CALCULATED, YOU KNOW, DID YOU GO BACK AND SAY, WELL, THE MARKET REALLY SORT OF SETTLED OUT HERE? I MEAN, IT'S AS OF 1231 22.

BUT IF YOU LOOK AT 1231, 2023, IT'S PROBABLY GOING TO SWING THE OTHER WAY NEXT YEAR.

IT IS THE MARKET CONDITIONS AS OF THAT CALENDAR YEAR THAT WE HAVE TO LOOK AT.

AND SO THAT'S THAT'S CAUSING THE CHANGE.

THE DISCOUNT RATE WAS ALSO DECREASED, WHICH CAUSES IN THE IN THE NOTE DISCLOSURES OF THE FINANCIAL STATEMENTS.

IT'LL SHOW YOU WHAT A 1% INCREASE IN THE DISCOUNT IS AND A 1% DECREASE.

AND IT'S A HUGE FLUCTUATION JUST BY 1%.

SO FOR THE DISCOUNT RATE TO CHANGE BY OVER 2%, IT DOES CAUSE THAT BIG SWING.

BUT REALLY THOSE MARKET CONDITIONS AND THE VALUE OF THOSE INVESTMENTS AT 1231 22, IT IS A POINT IN TIME AND IT DOES CAUSE A LOT OF SHIFTS, UNFORTUNATELY, BUT IT SHOULD SHIFT THE OTHER WAY AT 12/31-23.

[00:35:06]

OKAY THE NEXT QUESTION I HAVE FOR YOU IS ABOUT THE LANDFILL LIABILITY.

HOW EXACTLY ARE WE ACCOUNTING FOR THAT AND ARE WE WHERE WE SHOULD BE? I KNOW WE'VE HAD A PRESENTATION IN SOME COMMITTEE.

I'M NOT EVEN SURE WHICH ONE THAT IS NOW EXPECTING THE LIFE OF THE LANDFILL TO EXCEED WHAT WAS ORIGINALLY PLANNED FORECASTED.

SO I'M WONDERING IF YOU CAN TALK ABOUT THAT A LITTLE BIT.

SURE. SO THE THE CAPACITY AT POST-CLOSURE IS EVALUATED.

SO THERE THE IT'S A BIG CALCULATION.

I'M NOT SURE I CAN TALK THROUGH IT UP HERE, BUT IT IS BASED ON WHAT THE LIABILITY WOULD BE POST CLOSURE.

AND SO YOU'RE EVALUATING THE CAPACITY OF THE LANDFILL AS WELL, WHAT IT CAN HOLD AND THEN WHAT IT WOULD COST TO CLOSE.

AND SO IT IS INCREASING THIS YEAR.

IT DID INCREASE A LITTLE BIT IF THE CAPACITY WERE TO CHANGE.

THERE'S THIRD PARTY ENGINEERS THAT GO IN AND PROVIDE REPORTS FOR US.

AND THAT'S WHAT WE WOULD EVALUATE AS THE ESTIMATE.

SO IT IS A LARGE ESTIMATE THAT WE'RE EVALUATING FOR REASONABLENESS AT YEAR END.

IT'S ONE OF THE LARGEST ONES.

AND SO AT THIS POINT WHAT DO YOU EXPECT THE LIFE TO BE.

I'M NOT SURE THAT'S I'D HAVE TO GET THE ENGINEERING REPORT AND EVALUATE THAT.

OKAY. MY NAME IS LANCE SEEHORN.

I'M THE ASSISTANT CITY CONTROLLER.

YES. WE WOULD NEED TO TALK WITH ONE OF THE ENGINEERS THAT EVERY YEAR, WELL, NOT EVERY YEAR.

PERIODICALLY, ENGINEERS WILL GO OUT AND SURVEY THE PROPERTY AND GIVE US AN ESTIMATE ON THE CLOSURE AND POST-CLOSURE COST AND ALSO THE CAPACITY OF THE LANDFILL. WE WOULD REALLY NEED TO COMMUNICATE WITH THEM BECAUSE WE'RE NOT EXPERTS WITH THE LANDFILL.

SO DO WE HAVE AN ACCRUAL FOR THAT? WE DO HAVE AN ACCRUAL FOR THE THE CLOSURE AND POST CLOSURE COST.

AND THAT'S THE $54 MILLION THAT YOU SEE ON THE PRESENTATION.

YEAH. IT WAS THAT LAST SITTING AT A BANK ACCOUNT SOMEWHERE.

TO MY KNOWLEDGE, THERE'S NOT AN ASSET TO OFFSET THE LIABILITY.

I'M NOT SURE IF WE'VE BEEN SETTING THIS.

I DON'T THINK WE'VE BEEN SETTING ASIDE MONEY THAT'S EXACTLY TO CLOSE THE LANDFILL.

SO THAT'S WHERE YOU'RE THAT'S WHERE YOU'RE GOING WITH THIS.

I'M NOT LOOKING FOR A TALLY.

I'M LOOKING. IF WE'RE ACTUALLY PUTTING DOLLARS ASIDE FOR THIS.

GOTCHA. OKAY. WITH THE ACCRUAL, THERE'S A LIABILITY ACCRUED.

BUT THERE'S I DON'T KNOW THAT THERE'S NECESSARILY YEAH THERE'S NO ACCOUNT.

SO IF I COULD ANSWER PART OF THAT IN THE FISCAL YEAR 24 BUDGET, SANITATION DID INCLUDE $2 MILLION TO BEGIN TO SET ASIDE TO ADDRESS THAT LONG TERM LIABILITY. SO IT HAD NOT BEEN ADDRESSED IN PRIOR YEARS.

THIS IS THE FIRST YEAR OF SETTING FUNDS ASIDE.

AND IS IT YOUR INTENTION TO CONTINUE FUNDING THAT? YES, MA'AM. AT THE SAME 2 MILLION, ARE YOU GOING TO ESCALATE IT OR? SO I KNOW WE DID 2 MILLION THIS YEAR, AND IN THE PLAN I'M NOT SURE ABOUT THE FUTURE YEARS, BUT YES, WE WILL CONTINUE.

JUST NOT SURE OF THE AMOUNT.

OKAY, GREAT.

WELL, THOSE ARE ALL MY QUESTIONS.

AND SHERRY AND JACK, BOTH OF YOU, CONGRATULATIONS ON A REALLY GREAT AUDIT.

AGREED. THANK YOU SO MUCH AND WE APPRECIATE IT.

THANK YOU. ALL RIGHT.

SO A LITTLE HOUSEKEEPING ITEM.

I'VE PULLED MY COLLEAGUES AND BRIEFING MEMORANDUMS J, K AND L.

WE'RE GOING TO NOT NEED TO GO OVER THOSE.

SO ANYONE WHO'S HERE JUST FOR THOSE CAN STICK WITH US.

OUR DEPART. WE WILL GO AHEAD AND MOVE ON TO ITEM C INSPECTOR GENERAL DIVISION UPDATE.

YEAH.

GOOD AFTERNOON, MR. CHAIRMAN.

MEMBERS OF THE COMMITTEE.

MAY I GET STARTED? OKAY. NEXT SLIDE.

WE TRIED TO BUILD THE OFFICE UP, WHICH IS OBVIOUSLY THE FIRST PHASE.

IT TOOK ROUGHLY 9 OR 10 MONTHS TO GO FROM NO PEOPLE AND NO RESOURCES AND NO DOCUMENTS TO WHAT I WOULD CALL FULLY OPERATIONAL. AND I BELIEVE THAT HAPPENED SOMETIME IN JANUARY OF LAST YEAR, JANUARY 23RD.

I CAN'T TELL YOU IF IT WAS THE BEGINNING OF JANUARY 23RD OR THE END, BUT SOMETIME DURING THAT MONTH IS WHEN I WOULD SAY WE WERE FULLY OPERATIONAL.

THAT FIRST PHASE WAS OBVIOUSLY STAFFING AND GETTING WORKFLOWS AND DOCUMENTS TOGETHER TO OPERATE.

[00:40:04]

AND WE KIND OF SHIFTED INTO A PHASE TWO.

AND I BELIEVE THAT BEGAN IN EARNEST IN AUGUST OF 23.

AND I'M SURE YOU GUYS HAVE HEARD ME MENTION OVER, OVER TIME ABOUT THE IMPORTANCE OF PREVENTION AND HOW WE ALWAYS TRY TO HAVE THE AWARENESS, UNDERSTANDING, PREVENTION, AWARENESS, UNDERSTANDING, PREVENTION, AND PART AND PARCEL OF THAT PROCESS, IN MY OPINION, IS THE TRAINING.

WE'VE DONE A TREMENDOUS AMOUNT OF TRAINING THAT WE'LL GET INTO JUST A LITTLE MORE DETAIL.

WE'VE GOT ADVISORY OPINIONS, WHICH ARE CONFIDENTIAL ADVISORY OPINIONS IN GENERAL.

WE'VE GOT A RISK ASSESSMENT THAT'S ONGOING THAT WE'RE DOING AND CONDUCTING AND IN ACCORD WITH OUR ROAD SHOW MEETINGS.

AND THEN, AS I SAID, BACK IN AUGUST OF 23, WE STARTED PRETTY MUCH MARKETING.

AND NEXT SLIDE.

THIS SLIDE KIND OF GIVES YOU A PREVIEW OF WHAT I'M GOING TO TRY TO COVER OVER THE NEXT 5 OR 6 SLIDES ABOUT SOME OF THE TRAINING WE'RE DOING IN PERSON, SOME OF THE RESOURCES WE'VE DEVELOPED, ADVISORY OPINIONS, WHAT THEY'RE LOOKING LIKE COMING IN THE MARKETING TO THE CITY AND STUFF THAT'S IN THE HOPPER, STUFF THAT'S NOT FINISHED.

I CAN'T PROMISE YOU IT'S GOING TO HAPPEN, BUT WE'RE WORKING ON IT AND HOPING THAT IT WILL COME OUT.

NEXT SLIDE PLEASE.

WE HAVE TRAINED OVER 2500 PERSONS AND 81 TOTAL EVENTS OVER THE LAST 12 MONTHS, ROUGHLY 12 MONTHS.

SOME OF THAT TRAINING IS ONGOING.

THE NEO STUFF HAPPENS AT 915 ON MONDAY MORNINGS.

SOMETIMES IT'S A QUARTERLY TRAINING WITH SUPERVISORS, SOMETIMES IT'S NEW COUNCIL MEMBERS THAT COME IN ONCE A YEAR, ONCE EVERY TWO YEARS.

AND WE'VE DONE SOME DEVELOPMENT TRAINING, WHICH AN EXAMPLE OF THAT WOULD BE WHAT WE DID AT ETHICS WEEK WHEN WE HAD A GIFTS TRAINING LUNCH AND LEARN DURING THE ETHICS WEEK EVENT THAT WAS SPONSORED IN NOVEMBER.

AND THESE ARE THE FOLKS HERE ON THE SLIDE THAT WE'VE MET WITH ROAD SHOW MEETINGS AND AND SOME OF IT'S AD HOC.

SOMETIMES YOU SIT DOWN WITH THESE PEOPLE IN A ROAD SHOW TO TELL THEM WHO YOU ARE, WHAT YOU DO, HOW TO GET IN TOUCH WITH US.

AND THEN WE LISTEN AND THEY SAY, YOU KNOW, GOSH, WE'VE GOT THE SAME TWO ISSUES.

WE'VE READ THE ETHICS ORDINANCE, WE'VE GOT THE SAME TWO ISSUES.

HERE'S WHAT THEY ARE, AND WE'LL TRY TO DEVELOP A TRAINING SPEARHEADED EXACTLY TOWARDS WHAT THEY'RE TELLING US THAT THEY NEED HELP WITH.

AND SO IF YOU'RE WONDERING, HOW COULD YOU DO 2500 PEOPLE AND 81 EVENTS? YOU DON'T LOOK LIKE YOU GOT A LOT OF DEPARTMENTS HERE ON SLIDE FOUR.

WELL, AN EXAMPLE WOULD BE DALLAS WATER UTILITIES.

THERE WERE SO MANY FOLKS WE HAD TO WE HAD TO CONDUCT FIVE SEPARATE CLASSES TO GET ALL THE DWU PEOPLE IN.

SO THAT WOULD GIVE YOU SOME CONTEXT FOR THAT.

NEXT SLIDE PLEASE.

VERY PLEASED TO TELL YOU THAT WE'RE DOING SOME THINGS PROACTIVELY.

WITH WRITTEN RESOURCES.

WE STARTED A MONTHLY QUIZ GAME CALLED CATCH THE CANARY.

AND I DON'T KNOW ABOUT YOU GUYS, BUT I IF I SEE SOMETHING ON THE INTERNET THAT'S GOT A TEN QUESTION QUIZ, I'M KIND OF LIKELY TO STOP AND LOOK AT IT, SEE HOW I DO.

WE'RE TRYING TO ENGAGE EMPLOYEES AND FOLKS HERE IN THE CITY OF DALLAS WITH THIS MONTHLY QUIZ GAME.

AND I'M PLEASED TO TELL YOU, IT'S BEEN PLAYED OVER 4800 TIMES THROUGH FEBRUARY OF 24.

WE'VE GOT AN ETHICS MATTERS MONTHLY NEWSLETTER THAT GOES OUT.

AND, YOU KNOW, WE TRY TO ADDRESS GENERAL ITEMS WHILE WE'RE NOT COMPLETELY FINISHED WITH THE RISK ASSESSMENT, I DON'T.

I DON'T FEEL GOOD ABOUT WAITING TILL THE RISK ASSESSMENTS DONE TO BEGIN ADDRESSING STUFF.

SO THAT WOULD EXPLAIN WHY YOU SAW A COUPLE MONTHS AGO GIFTS BEING ADDRESSED IN THE MONTHLY NEWSLETTER.

ETHICS MATTERS.

IF IT POPS UP ON OUR RADAR AND IT'S A PART OF THE RISK ASSESSMENT AND WE SEE IT AGAIN AND AGAIN, WE'RE NOT GOING TO WAIT TILL THE RISK ASSESSMENTS DONE TO BEGIN DOING SOMETHING ABOUT THAT. SO WE'RE TRYING TO BE PROACTIVE IN THAT MANNER.

GIFTS KEEPS POPPING UP.

WE'VE CREATED SOME GUIDES, A PLAIN LANGUAGE GUIDE, POSTERS AND IGD PAMPHLET WHISTLE CARDS, AND TRYING TO DO SOME THINGS OF A COMMUNICATION TRAINING IN A PROACTIVE MANNER.

NEXT SLIDE PLEASE.

THAT THE CONFIDENTIAL ADVISORY OPINIONS ARE.

STUFF THAT WE'VE DONE QUITE A BIT OF.

WE HAVEN'T DONE ANY GENERAL ADVISORY OPINIONS.

THE GENERAL ADVISORY OPINION WOULD BE JUST KIND OF LIKE A SAFE HARBOR THAT YOU'D SEE IN FEDERAL LEGISLATION.

THESE HAVE TO BE PROSPECTIVE IN NATURE, AND THEY HAVE TO BE ABOUT MY OWN CONDUCT.

SO IF I CALL UP AND SAY, HEY, I'D LIKE TO ASK SO AND SO DID THIS, IT'S NOT ME.

[00:45:02]

IS THAT OKAY? WELL, THAT'S NOT MY BEHAVIOR.

I CAN'T CALL UP AND SAY, HEY, I JUST DID SOMETHING A COUPLE OF WEEKS AGO.

AM I IN TROUBLE? WELL, IT'S GOT TO BE PROSPECTIVE IN NATURE IN THE FUTURE, AND IT HAS TO INVOLVE MY OWN BEHAVIOR.

SO WHEN PEOPLE REACH OUT TO US IN THAT MANNER, WE'VE SEE 70 OVER THE 12 MONTH PERIOD THAT WE MEASURED HERE FROM MARCH TO MARCH.

WE DID 27 WRITTEN OPINIONS AND 43 OTHER RESPONSES.

AND IF YOU WANT TO KNOW WHAT THOSE OTHER RESPONSES WERE, SOMETIMES THEY WITHDRAW IT.

SOMETIMES THEY SAY, YEAH, SEND IT IN.

I'M GOOD. I DON'T NEED ANY FORMAL WRITTEN OPINION.

SOMETIMES THEY SAY, YOU KNOW, I DON'T NEED A FORMAL OPINION, BUT I SURE WOULD LIKE AN EMAIL.

COULD YOU SHOOT THAT TO ME IN AN EMAIL? OTHER TIMES THEY'LL SAY, I DON'T NEED ANYTHING IN WRITING.

JUST CAN YOU CALL ME ON THE PHONE AND WALK ME THROUGH THIS VERBALLY? AND SO THAT'S WHERE YOU SEE THOSE 43 OTHER RESPONSES.

WHAT IS KIND OF NOTABLE? IF YOU LOOK AT THE BOTTOM OF THE PAGE WHERE WE HAVE 31 REQUESTS AND THIS THREE MONTH TIME PERIOD, THAT'S 10.33 A MONTH.

FOR THE THREE MONTHS THAT WE MEASURED.

THAT'S A 77% INCREASE OVER WHAT YOU SEE AT THE TOP OF THE PAGE.

SO THIS UPWARD TRAJECTORY IS SOMETHING THAT WE'RE NOTICING AND THE ADVISORY OPINIONS.

NEXT SLIDE PLEASE.

WE'RE FORTUNATE ENOUGH TO HAVE ETHICS WEEK BACK IN NOVEMBER.

DOWN ON THE FIRST FLOOR OF CITY HALL.

MONDAY, WE DID AN ETHICS JEOPARDY.

AND WE SET THIS WHOLE WEEK UP TO COINCIDE WITH NATIONAL FRAUD AWARENESS WEEK.

WE HAD SOME SPONSORS SHOW UP, ONE OF WHICH WAS THE ASSOCIATION OF CERTIFIED FRAUD EXAMINERS.

TUESDAY WE HAD ASK AN IG.

THURSDAY WAS THE BIG EVENT WHERE WE HAD SPEAKERS AND AWARDS, AND FRIDAY THE ESSAY CONTEST WINNERS GOT TO READ THEIR THE WINNING ESSAYS THAT THEY WROTE.

SO THIS WOULD BE AN ATTEMPT TO REACH OUT NOT JUST INTERNALLY BUT EXTERNALLY TO THE COMMUNITY ALSO.

NEXT SLIDE PLEASE.

ON THE LEFT SIDE OF THE SCREEN.

THERE YOU CAN SEE THE CONTACT INFORMATION.

I'VE GOT A BRACELET ON MY RIGHT HAND HERE THAT'S BLACK.

IT'S A DOT BRACELET.

AND IF YOU UNLOCK YOUR PHONE AND LET ME PUT THIS UP NEXT TO IT, IT'LL POP UP JUST LIKE A QR CODE WOULD.

WHAT YOU SEE ON THE LEFT SIDE OF THE SCREEN HERE.

SO IT'S GOT CONTACT INFORMATION ON HOW TO REACH US.

WE ALSO DID A PUBLIC SERVICE ANNOUNCEMENT WHICH WAS UP AT THE TOP.

TC BROADNAX WAS KIND ENOUGH TO INVITE US ONTO HIS PODCAST BACK IN THE FALL, MIDDLE OF THE FALL SOMETIME.

AND SO WE GOT TO DO THE PODCAST WITH HIM.

AND THEN OVER ON THE RIGHT SIDE IS OUR LOGO.

IT'S WE HAD A CONTEST TO NAME THE THE REPORTING, THE HOTLINE REPORTING, AND THE THE WINNING NAME WAS THE WHISTLE.

SO THAT'S THE LOGO THAT GOES WITH IT.

NEXT SLIDE PLEASE.

AND SO THESE ARE THINGS THAT ARE IN THE HOPPER.

THEY'RE NOT STARTED YET. I'M KIND OF HOPING THAT THEY WILL BE.

WE'RE WORKING WITH CITY MANAGER'S OFFICE ON COORDINATING AN ETHICS DEBATE.

WE'VE GOT OUR WEBSITE UPGRADE.

WE WENT FROM ONE PAGE TO 31 PAGES, AND THAT WAS DONE SOMETIME IN LATE SEPTEMBER.

AND WE WERE HOPING THAT THAT'S GOING TO BE UP AND RUNNING WHERE EVERYBODY CAN SEE IT SOON.

WE'VE GOT THE ROADSHOWS THAT ARE GOING ON.

WE'VE COVERED ROUGHLY ONE FOURTH OF THE DEPARTMENTS WITHIN THE CITY.

WE'VE SLOWED DOWN A LITTLE BIT LATELY BECAUSE THE GENTLEMAN WHO WAS SCHEDULING THESE FOR THE ETHICS OFFICE AT THE CITY MANAGER'S OFFICE MOVED ON TO ANOTHER JOB.

AND THAT'S ONE REASON WHY IT REALLY SLOWED DOWN LATELY.

THE ETHICS TRAINING.

WE TRY TO GET.

THAT REALLY SHOULD BE BIENNIAL EVERY TWO YEARS.

WE'RE TALKING ABOUT EVERYBODY HAS TO GO THROUGH ETHICS ONCE EVERY TWO YEARS, SOME KIND OF TRAINING.

AND INSTEAD OF WAITING AND DOING THIS ONCE A YEAR, ONCE EVERY TWO YEARS, WE'RE TALKING ABOUT MAKING IT A MONTHLY OPTION.

SO IF I'M THREE MONTHS AWAY FROM MY TWO YEAR DEADLINE, I CAN GET MY TRAINING DONE TODAY.

AND WE HAVEN'T IMPLEMENTED THAT.

BUT WE'RE CERTAINLY HOPING TO DOING IT LIVE, I THINK IS A VERY POSITIVE THING BECAUSE RISKS CHANGE WOULD GIVE US THE OPPORTUNITY TO BE MORE RESPONSIVE, SEE FACES, AND KIND OF HUMANIZE THE OFFICE.

AND THEN FINALLY, THE RISK ASSESSMENT IS SOMETHING THAT.

I'D MENTION THAT WHEN WE VISIT WITH THESE FOLKS, IT'S NOT JUST TELLING THEM WHO WE ARE AND WHAT WE DO AND HOW TO GET IN TOUCH WITH US.

IT'S LISTENING TO THEIR INPUT ABOUT WHAT THEY THINK RISKS ARE OF AN ETHICS NATURE, BUT WE'RE ALSO TRYING TO COME UP WITH AN IDEA OF HOW TO MAKE LIAISONS WITH EACH DEPARTMENT.

SO IF WE CAN IDENTIFY PEOPLE AS WE GO THROUGH THIS, IT MIGHT MAKE THE COMMUNICATION FROM US TO THE EMPLOYEES AND FROM THEM TO US EVEN BETTER.

BUT WE'RE HOPING TO HAVE THAT IMPLEMENTED AS AS WE WIND UP THE RISK ASSESSMENT AND CONTINUE IT.

[00:50:06]

THE NEXT SLIDE PLEASE.

THE PHASE ONE PROGRESS IS A SLIDE THAT SHOWS WHAT I'M GOING TO TRY TO COVER IN THE NEXT COUPLE OF SLIDES ABOUT PROGRESS DURING THE FIRST 12 MONTHS OF FULLY OPERATIONAL. WE'VE GOT SOME BENCHMARK METRICS AND COMPLAINTS AND JURISDICTION ISSUES.

NEXT SLIDE.

I'M PLEASED TO REPORT THIS WAS INTERESTING.

WE TOOK A SNAPSHOT OF WHAT OUR OFFICE HAD DONE.

FROM THE MOMENT ROUGHLY, THAT WE BECAME FULLY OPERATIONAL IN JANUARY TO DECEMBER 20TH.

SO THAT IS A CALENDAR YEAR WHERE 11 DAYS SHY OF A FULL CALENDAR YEAR.

BUT THINGS SLOWED DOWN BEFORE CHRISTMAS, WHICH GAVE US ENOUGH TIME TO DO THIS.

BUT I THINK IT'S I THINK IT'S I'M PRETTY PLEASED WITH THIS.

THE NUMBER OF INVESTIGATORS THAT WE HAVE IS 79% LESS THAN THE NATIONAL AVERAGE, GIVEN THE POPULATION.

THE YEARS OF RELEVANT EXPERIENCES, OUR INVESTIGATORS ARE ALMOST, ALMOST HAVE TWICE THE EXPERIENCE OF THE AVERAGE INVESTIGATOR.

AND 84.91% OUR CASELOAD IS 28, AS OPPOSED TO 12, WHICH IS 133% MORE THAN THE NATIONAL AVERAGE.

AND WE'RE CLOSING CASES.

AVERAGE TIME TO CLOSE A CASE WOULD BE 94 DAYS.

I'D PUT A BIG ASTERISK BY THAT, BECAUSE SOMETIMES THESE THINGS COME IN WITH LOTS OF BANK RECORDS.

BUT WE'RE CLOSING CASES IN 74 DAYS ON THE AVERAGE OVER THIS 12 MONTH TIME PERIOD, WHICH IS 21% FASTER THAN THE NATIONAL AVERAGE.

AND THE CASES THAT WE CLOSED OVER A 12 MONTH TIME PERIOD IS 72, ALMOST 73% MORE THAN THE NATIONAL AVERAGE.

SO I THINK THAT REALLY SHOWS THAT OUR INVESTIGATORS ARE WORKING HARD AND AND DOING A GOOD JOB.

NEXT SLIDE PLEASE.

THIS WOULD BE COMPLAINTS BY THE QUARTER.

THERE'S ONLY FOUR DATA POINTS HERE, AND THAT WOULD BE THE COMPLAINTS RECEIVED AND THE COMPLAINTS CLOSED.

AND AND IT SHOWS YOU THE TRAJECTORY FROM ONE QUARTER TO THE NEXT TO THE NEXT QUARTER.

AND, YOU KNOW, YOU CAN LOOK AT THE COMPLAINTS CLOSED AND SEE THAT FROM THE THIRD QUARTER TO THE FOURTH TO THE FIRST, YOU GO FROM THE LIGHT BLUE LINE TO THE ORANGE TO THE DARK BLUE.

IT'S OBVIOUSLY GOING UP.

AND SO IT SHOWS THAT TREND.

BUT YOU CAN ALSO KIND OF SEE AT THE SAME TIME, YOU HAVE CURRENT IN-PROGRESS CASES THAT HAVE GONE DOWN.

AND I THINK THERE'S A RELATIONSHIP THERE.

THE MORE CASES YOU CLOSE, THE LESS YOU'RE GOING TO HAVE IN PROGRESS.

SO THOSE ARE JUST SOME DATA POINTS.

I WANTED TO GO BACK NINE MONTHS, AS OPPOSED TO JUST BRIEFING YOU ON WHAT WE'VE DONE THE LAST 90 DAYS.

NEXT SLIDE PLEASE.

AND OUR.

WE'VE GOT FIVE RESPONSIBILITIES, BUT WE ONLY HAVE POWER TO JURISDICTION, POWER AND JURISDICTION TO DEAL WITH THREE OF THOSE.

SO I WAS A LITTLE CONCERNED WHEN WHEN I REALIZED THAT THESE THESE WORDS ARE THERE, BUT WE DON'T HAVE THE JURISDICTION FOR IT.

AND WHEN WE SEE SOMETHING THAT I THINK IS FRAUD OR SOMETHING THAT I THINK IS CORRUPTION, DO WE REFER THAT TO OUTSIDE LAW ENFORCEMENT AGENCIES? ABSOLUTELY. WE DO IT AS QUICKLY AND EFFICIENTLY AS WE CAN.

BUT I ALSO THINK THERE'S A RISK THERE THAT IF YOU'RE NOT A LAWYER AND YOU'RE A RESIDENT OF DALLAS, THAT YOU MIGHT LOOK AT THAT AND THINK THAT WE'RE ACTUALLY INVESTIGATING FRAUD AND CORRUPTION WHEN WE DO NOT HAVE THAT JURISDICTION.

AND SO I JUST INCLUDED A COUPLE OF BLURBS AT THE BOTTOM OF, OF FRAUD.

WHAT IS IT? CORRUPTION.

WHAT IS IT? THESE ARE THINGS STRAIGHT OFF THE ACFE WEBSITE, AND I INCLUDED THE LINKS THERE SO YOU CAN TAKE A LOOK AT THEM.

NEXT SLIDE PLEASE.

AND OUR LAST SLIDE IS WE JUST STARTED IMPLEMENTING THE PERFORMANCE DATA COMPILER.

IT'S A THREE MODEL MEASUREMENT SYSTEM THAT FACILITATES INTERNAL CONTROL AND ACCOUNTABILITY.

IT'S GOT FOUR PRIMARY GOALS AND THREE MODELS THAT TRIES TO ANSWER FOUR QUESTIONS ON ANY SET OF DATA THAT YOU ENTER INTO IT.

IT'S A VERY UNIQUE TOOL.

WE USED IT IN MY LAST OFFICE, AND I GOT PERMISSION FROM THE GUY WHO CREATED IT TO USE IT HERE.

AND SO WE'RE LOOKING FORWARD TO USING THAT AND HOPEFULLY THAT WILL HELP US DO A LOT OF THINGS.

THANK YOU. ALL RIGHT.

QUESTIONS? GO AHEAD.

I LITERALLY ONLY HAVE ONE QUESTION, SO IT WAS VERY THOROUGH PRESENTATION.

HAVE YOU PROSECUTED ANY CASES? SINCE WE STARTED HERE, I'VE BEEN FIRST CHAIR PROSECUTOR ON EVERY SINGLE CASE.

[00:55:05]

BUT HOW MANY HAVE COME FORWARD? HOW MANY HAVE WE FILED AND ACTUALLY PROSECUTED? I WOULD SAY TWO SINCE JUNE.

THE THIRD WAS ONE.

THAT GENTLEMAN WAS NOT AN EMPLOYEE AND WE WERE ALLOWED TO ENGAGE IN PLEA NEGOTIATIONS, SETTLEMENT NEGOTIATIONS WITH THEM.

SO WE'VE GOT THREE SITUATIONS.

ONE GOT PLED TRUE, THE OTHER FIRST PERSON DIDN'T.

THE LAST ONE WE PROSECUTED WAS FEBRUARY 22ND AND THAT INDIVIDUAL DID NOT SHOW UP.

SO WHAT HAPPENS NOW? WE WENT FORWARD IN ABSENTIA.

SO HOW ARE WE FINDING OUT ABOUT THOSE CASES? THE CASES THAT WE FILE, THEY COME FROM DIFFERENT WAYS.

DIFFERENT. NO.

I'M SAYING HOW WOULD THE PUBLIC FIND OUT ABOUT THEM? TUNE IN. THEY'RE USUALLY IN THIS ROOM AND THEY'RE BROADCAST.

AND YOU KNOW, IF I WAS A MEMBER OF THE PUBLIC AND RETIRED AND PLAYING GOLF EVERY DAY, AT SOME POINT I'D GET BORED ENOUGH TO LOOK FOR STUFF LIKE THIS.

AND YOU KNOW, IF YOU WANT TO SEE WHAT DOES IT LOOK LIKE WHEN THEY PULL THE RUG UP AND DRAG SOME STUFF OUT? I THINK IT'S IT'S INTERESTING.

THE LAST ONE WAS.

WAS. A LOT OF INFORMATION.

IT INVOLVED AN OFF THE BOOKS FRAUD SCHEME, AND THOSE ARE NOT THE EASIEST THING IN THE WORLD TO PRESENT.

SO YEAH, IT COMES WITH CHALLENGES.

WELL, I'M NOT RETIRED OR BORED, BUT I'LL GO BACK AND WATCH THEM AND I HOPE THAT OUR MEDIA WILL REPORT ON THEM.

THANK YOU. YES, MA'AM.

OKAY, SO TELL ME, I MEAN, I'M LOOKING AT YOUR CHART HERE, AND I HAD TO STEP OUT, SO YOU MAY HAVE SAID THIS, BUT HOW MANY DO YOU HAVE IN YOUR DIVISION? HOW MANY EMPLOYEES? WE HAD ABOUT WE HAD 14 ABOUT A YEAR AGO AND LOST A COUPLE OF THOSE POSITIONS.

THE RESEARCH ANALYST POSITION WAS TAKEN BY CITY ATTORNEY'S OFFICE AND THEY I SAY TOOK THEY TOOK THE SECOND POSITION.

BUT ANYWAY, AREN'T YOU IN THE CITY ATTORNEY'S OFFICE? SORRY. NEVER MIND. GO AHEAD.

YEAH. AND SO THEY CONVERTED THAT TO A FLOATER POSITION.

IT WAS VACANT FOR THE LAST 12 MONTHS.

I THINK IT JUST GOT FILLED.

OKAY. SO HOW MANY ARE IN YOUR DEPARTMENT RIGHT NOW? 12. 12.

AND HOW MANY DO YOU HAVE BUDGETED TO HIRE? 12. I'VE NEVER SEEN..

SO YOU'RE FULLY STAFFED? I'VE NEVER SEEN A BUDGET, BUT I HAVE DEFINITELY WOULD SAY 12 PEOPLE.

SO. SO I GUESS I'M TRYING TO SAY, ARE YOU FULLY STAFFED? YEAH. IF, IF I, IF I GOT TO ACTUALLY LOOK AT THE BUDGET, THERE'S ALWAYS A POSSIBILITY THAT THAT THE FLOATER POSITION COULD BE CONSIDERED OURS ON THE BUDGET, I DON'T KNOW.

ALL I KNOW IS THAT IT WAS VACANT AND I BELIEVE IT WAS RECENTLY HIRED, RECENTLY FILLED.

OKAY. SO YOU HAVE 12 FOLKS.

YOU DID HAVE 14 LAST YEAR.

YOU HAVE 12.

MY BUT YOU SAID YOU HAVEN'T SEEN A BUDGET BECAUSE I'M ASKING YOU, WHAT IS YOUR BUDGET? BECAUSE I'M THE WHERE I'M GETTING TO IS ARE YOU GOING TO COME BACK THIS BUDGET CYCLE AND ASK FOR ANYTHING ELSE? I DON'T KNOW THE ANSWER TO THAT FOR A COUPLE OF REASONS.

I MEAN, IF YOU LOOK AT THE BUDGET FOR THE CITY ATTORNEY'S OFFICE AND I CAN'T REMEMBER WHAT IT WAS, 23.7 MILLION, SOMETHING LIKE THAT, AND YOU TOOK THE 12 PEOPLE THAT WE HAVE AND DIVIDED IT BY THE 167.45 OR WHATEVER THEY HAVE.

I WOULD GUESS THAT THAT WOULD BE SOMEWHERE AROUND 1.9 MILLION IF WE HAVE 12 OF THE 167 POSITIONS, THEN WHAT IS WHAT IS THAT PERCENT OF THE ENTIRE BUDGET THAT WAS GIVEN? I WOULD SAY ROUGHLY 1.9, BUT THAT'S JUST A GUESSTIMATE.

OKAY. SO YOU DON'T KNOW YOUR BUDGET? NO. AND YOU DON'T KNOW HOW MANY PEOPLE YOU'RE SUPPOSED TO HAVE.

WELL, I HAVE 12. NO, YOU HAVE 12.

BUT HOW MANY ARE SUPPOSED TO HAVE.

I GUESS THAT'S KIND OF A TRICKY QUESTION.

BECAUSE I FROM MY RECOLLECTION, YOU HAD 14 AND 24, 2023.

I DON'T THINK WE TOOK ANY AWAY FROM YOU.

SO I OH, HERE COMES OKAY.

SO I'M TRYING TO UNDERSTAND, ARE YOU DOING DO YOU HAVE ENOUGH PEOPLE TO DO THE WORK.

AND THEN I WANT TO TALK ABOUT THE WORK.

SO THAT'S WHAT I'M TRYING TO GET.

I GUESS. HI, TAMMY PALOMINO WITH THE CITY ATTORNEY.

THERE ARE 12 POSITIONS FOR THIS DIVISION OF THE CITY ATTORNEY'S OFFICE.

AND DO YOU KNOW THE TOTAL BUDGET? I DON'T. OKAY, I'M SORRY, I DIDN'T I WASN'T PREPARED TO COME DOWN AND TALK ABOUT BUDGET.

OKAY? BECAUSE I BECAUSE I'M AS I SAID, I'M TRYING TO.

THAT WAS A BIG DISCUSSION POINT LAST YEAR.

I THINK AMENDMENTS WERE MADE.

I JUST WE JUST I JUST WANT TO EXPECT IF THERE IS GOING TO BE A REQUEST THAT IT'S MADE, IT'S TALKED ABOUT HERE AND NOT KIND OF SURPRISING BECAUSE WE ALSO WANT TO LOOK AT WHAT THE WORK GOES WITH IT.

AND ARE THEY LINING UP? ABSOLUTELY. OR WHATEVER.

ARE WE GETTING AN ROI?

[01:00:02]

WELL, I WILL PRESENT MY BUDGET TO GPFM AS WELL.

I DID LAST YEAR, OKAY.

AND MY BUDGET IS GOING TO BE BASED ON WORKLOAD AND PRIORITIES OF THE CITY.

OKAY. BECAUSE THEN IT GOES BACK OKAY.

AND THANK YOU. SO IT GOES BACK TO THE COMPLAINT.

SO A COMPLAINT IS FILED AND YOU CAN SEE HOW THEY WERE CLOSED OUT.

AND THERE IS A BETTER PROCESS IN WHICH TO DO IT NOW.

SO HOW MANY COMPLAINTS ACTUALLY WENT TO THAT SECOND STAGE OF ALL OF THEM.

LIKE IF THERE WAS A THOUSAND COMPLAINTS FILED SINCE YOU'VE BEEN HERE SINCE IT STARTED, HOW MANY ACTUALLY WENT TO THE NEXT PHASE? WHEN YOU SAY NEXT PHASE, ARE YOU REFERRING TO A FULL SCALE INVESTIGATION OR PRELIMINARY INVESTIGATION? I WOULD SAY JUST LET'S JUST DO PRELIMINARY FIRST, BECAUSE THAT IS THE NEXT.

THERE'S A REVIEW, RIGHT? AND THEN YOU GO TO THAT PRELIMINARY AND THEN YOU GO TO THE FULL SCALE INVESTIGATION.

I'M TRYING TO SEE WHICH HOW THE TRANCHES ARE GOING TO AGAIN TO SEE ARE WE GETTING WHAT WE INTENDED TO GET WHEN WE CREATED THIS ORDINANCE? I COULD GET YOU THAT INFORMATION.

WE COULD. DO YOU MIND? I DON'T MIND AT ALL.

AND SO WHAT YOU NEED IS A THE COMPLAINTS THAT COME IN, HOW MANY GO TO PRELIMINARY STAGE, HOW MANY ADVANCE TO THE FULL SCALE INVESTIGATION PHASE.

AND THEN OUT OF THAT HOW MANY.

BECAUSE WE HAD YOU SAID ABOUT I THINK THREE ACTUALLY WENT TO A FULL BLOWN HEARING.

RIGHT. THREE OR FOUR I WOULD I WOULD SAY TWO.

TWO DID, THE THIRD DIDN'T BECAUSE WE SETTLED IT BEFORE THE HEARING CAME.

SO I WANT TO SEE WHAT IS THE WORK IN BETWEEN THE AMOUNT OF CALLS THAT YOU'VE GOTTEN TO THE POINT THAT WE ONLY HAD TWO AND ALSO COME BACK, IS THERE ANY I KNOW WE'VE MADE SOME CHANGES TO THE LEVEL OF THRESHOLD IN WHICH THE, THE NEXT PHASE CAN HAPPEN, I GUESS I'M TRYING TO FIND.

DO WE NEED TO MAKE ANY MORE ADJUSTMENTS? HOWEVER, I'M NOT ON THAT COMMITTEE, BUT I'M SURE MISS MENDELSOHN WOULD ENTERTAIN THAT TO MAKE SURE THAT WE ARE GETTING WHAT WE INTENDED TO GET.

BECAUSE I DON'T WANT TO GO THROUGH AN EXERCISE OF JUST LOOKING LIKE WE'RE DOING SOMETHING, WHEN IN FACT WE MAY NOT BE DOING ANYTHING AT ALL, AND WE'RE INVESTING, I DON'T KNOW HOW MANY MILLIONS OF DOLLARS INTO A DIVISION THAT WE ARE HOPING THAT IS, THAT CREATES MORE TRANSPARENCY AND ETHICAL WORKPLACE.

SO THAT'S WHAT I'M TRYING TO BALANCE OUT.

THAT WAY WHEN YOU COME AND YOU SAY, I WANT MAYBE FOUR MORE INVESTIGATORS OR FOUR MORE OR FIVE MORE FOLKS, WE CAN ACTUALLY SAY, WELL, ARE WE DOING THE WORK THAT WE INTENDED TO DO? AND IF NOT, ARE WE MAKING DO WE HAVE THE RIGHT POLICIES, PROCEDURES, PERSONNEL, WHATEVER ELSE ORDINANCES IN PLACE BEFORE WE ADD MORE FINDINGS BEFORE MONEY? BECAUSE WE NEED TO GET THAT RIGHT, BECAUSE NO AMOUNT OF MONEY IS GOING TO GET IT RIGHT UNLESS WE START WITH THE TRAJECTORY FIRST.

SO THAT'S JUST MY FEELINGS OF LOOKING AT THIS.

I GUESS IT'S BEEN HOW MANY YEARS? THREE YEARS. NOT QUITE TWO YEARS.

OKAY, SO TWO YEARS. SO WE CAN I THINK NOW'S A GOOD TIME TO LOOK BACK AND SAY, WHAT DID WE DO? RIGHT? WHAT DID WE DO WRONG? MAKE A COURSE CORRECTION.

PUT MORE RESOURCES TO IT AND SET A TRAJECTORY TO REALLY CREATE A DIVISION THAT THAT IS GOING TO GET US TO WHERE WHAT WE THOUGHT WE WERE GOING TO GET.

JUST MY THOUGHTS AND I'M HAPPY TO SAY I'M WRONG AND JUMP OFF A CLIFF.

AND THAT'S JUST TO ANSWER YOUR QUESTION, THE BUDGET FOR THIS YEAR, FOR THIS PARTICULAR DIVISION IN OUR OFFICE IS 1.715.

OKAY. THANK YOU.

THANK YOU.

MR. RESENDEZ.

YOU GOT ANY QUESTIONS? NO. ALL RIGHT. I'VE GOT A FEW.

THANK YOU FOR THE PRESENTATION.

AND I'VE GOT THE QUARTERLY REPORT FROM I THINK IT WAS SEPTEMBER, JULY 1ST THROUGH SEPTEMBER OF LAST YEAR.

I DON'T HAVE THE NEW ONE, BUT I'M SURE WE CAN GET A COPY OF THAT.

SO MISS BLACKMON GOT A FEW OF THE QUESTIONS THAT I HAD BEEN PREPARED TO ASK IN THIS REPORT.

IT NOTED THAT YOU HAD 13 EMPLOYEES, FOUR ATTORNEYS, SIX INVESTIGATORS, AND THREE SUPPORT STAFF.

SO WHICH ONE OF THOSE POSITIONS IS NO LONGER FILLED? THE FLOATER. I'VE GOT THE FIRST QUARTER REPORT THAT I SENT YOU ALL, AND YOU'RE REFERRING TO THE ONE BEFORE THAT? YEAH. THAT'S THE ONE I'VE GOT HERE OKAY.

YEAH I DON'T HAVE THAT IN FRONT OF ME, BUT I COULD GET YOU THAT ANSWER.

SURE. I MEAN, DO YOU HAVE FOUR ATTORNEYS AND SIX INVESTIGATORS AND TWO STAFF OR.

OH, WE DID WE? YES, WE DID HAVE AN ATTORNEY LEAVE A COUPLE MONTHS AGO, SHE BECAME AN ASSOCIATE JUDGE OVER THE GEORGE ALLEN BUILDING, WHICH WAS A DREAM OF HERS FOR YEARS.

AND SO WE LOST HER, AND SHE WAS TREMENDOUS, AS YOU CAN PROBABLY IMAGINE.

AND SO WE'RE CERTAINLY WORKING TO GET THAT FILLED AND WE'RE CONDUCTING INTERVIEWS.

JUST TO CLARIFY, THERE ARE 12 POSITIONS IN THE DIVISION OF INSPECTOR GENERAL.

OKAY, THEN WHY WERE THERE 13 AS OF THE LAST QUARTER OF LAST YEAR?

[01:05:04]

THAT BUDGET STARTED OCTOBER 1ST.

SO YOU'LL HAVE TO TELL ME WHEN THE THAT QUARTER WAS POSTED.

YEAH. YOU KNOW, IS IT PRIOR TO OCTOBER 1ST? THE REPORT HE'S REFERRING TO WAS THE FOURTH QUARTER OF FISCAL 23, I THINK.

AND SO IF WE PUT 13 DOWN, IT'S PROBABLY BECAUSE ONE OF THEM'S CALLED A FLOATER POSITION THAT'S SUPPOSED TO FLOAT BACK AND FORTH.

AND I DIDN'T FEEL COMFORTABLE PUTTING 12.5 OR SOMETHING OF THAT NATURE.

SO THERE'S A GOOD POSSIBILITY THAT WOULD EXPLAIN IT.

OKAY. FOLLOW UP QUESTION.

BEFORE THIS DEPARTMENT EXISTED, IF THERE WERE COMPLAINTS OF THIS NATURE THAT CAME IN, WHAT DEPARTMENT WOULD HANDLE THOSE COMPLAINTS? IT WOULD HAVE GONE TO THE AUDITOR'S OFFICE BEFORE FRAUD, WASTE AND ABUSE.

AND IT MOVED OVER INTO THE THE IG DIVISION.

HAVE WE DONE AN ANALYSIS OF OUR COSTS, BEFORE WHEN WE WERE HANDLING THIS IN THE AUDITOR'S OFFICE AND OUR COSTS NOW WITH THIS NEW DEPARTMENT? I DON'T THINK WE HAVE, BUT WE CAN DO THAT AND CERTAINLY MAKE SURE THAT THAT'S PART OF THE BUDGET AS WELL.

THAT WOULD BE HELPFUL.

THANK YOU. I THINK THAT'S KIND OF WHAT MISS BLACKMON WAS GETTING AT.

EXACTLY. WHAT IS OUR BANG FOR OUR BUCK AS A CITY THAT WE'RE GETTING HERE? AND I THINK YOU SHE HAD MENTIONED, DO WE NEED TO PUT MORE RESOURCES IN IT? AND MY QUESTION WOULD BE MAYBE THAT'S THE CASE, OR MAYBE WE NEED TO PUT LESS IN IT.

LIKE I HAD CONCERNS.

AND JUST TO BE BRING THIS UP AGAIN DURING THE BUDGET OF SOME DEPARTMENTS STARTING UP ON A SPRINT PACE AND AS OPPOSED TO TAKING IT A LITTLE MORE CAREFULLY, AND I'M NOT CONVINCED, BASED BASED ON WHAT I'M SEEING HERE, THAT WE MADE THE RIGHT DECISION IN FUNDING IT AT THE LEVEL THAT IT'S FUNDED AT.

BUT I WANT TO SEE THE COMPARISON, WHAT WE'RE GETTING NOW VERSUS WHAT WE WERE GETTING BEFORE.

AND I'M OPEN TO BEING WRONG ON THAT.

CERTAINLY. QUESTION ON THE 50 COMPLAINTS CLOSED.

OKAY. SO LIKE I'M LOOKING AT THE LAST QUARTER OF 2023 THERE DURING THAT QUARTER THERE WERE 92 COMPLAINTS RECEIVED, TEN FULL SCALE INVESTIGATIONS COMPLETED.

AND THEN 50 CLOSED WITH NO INVESTIGATION NECESSARY OR NOT RELATED TO THE CITY.

DO WE HAVE DATA SHOWING, LIKE, HOW LONG IT WOULD TAKE YOUR DEPARTMENT TO CLOSE OUT ONE OF THE ONE OF THOSE 50 COMPLAINTS? I MEAN, IS IT A QUICK LIKE, OH, THIS IS CLEARLY A COUNTY ISSUE.

IT'S FIVE MINUTES. WE'RE DONE.

I'M GOING TO CLOSE THE BOOK ON THAT OR.

I WANT TO UNDERSTAND HOW WE'RE JUSTIFYING 12 EMPLOYEES.

THAT'S WHAT I'M GETTING AT. OKAY.

SOMETIMES IT IS THAT SOMETIMES A COMPLAINT COMES IN AND IT'S IT'S A COMPLAINT ABOUT TWO RESTAURANT COOKS IN MESQUITE.

OKAY, THERE'S NO CONNECTION TO THE CITY OF DALLAS WHATSOEVER.

NO EMPLOYEES.

MAYBE SOMEBODY GOT THE LINK OR THE NUMBER AND DECIDED TO MAKE A REPORT.

SO THOSE ARE THE KIND OF THINGS THAT WE WOULD TAKE AND LOOK INTO AND FERRET OUT BEFORE WE JUSTIFY CONDUCTING A PRELIMINARY INVESTIGATION.

IT'S KIND OF PART OF A PRELIMINARY INVESTIGATION TO GO THROUGH SOME OF THAT FOOTWORK, TO MAKE SURE THAT WE'RE NOT GETTING RID OF SOMETHING THAT WE SHOULDN'T GET RID OF.

BUT THERE ARE EVENTS LIKE THAT YOU KNOW, I CALL IT WALKING INTO THE SMOKE.

SOMEBODY FILES A COMPLAINT, AND YOU, YOU HAVE TO WALK IN THE SMOKE.

YOU GET THERE AND FIND OUT, IT MAY NOT BE SMOKE, IT MIGHT BE STEAM, BUT YOU HAVE TO WALK IN THERE TO SEE WHAT'S CAUSING IT.

AND WHEN YOU WALK IN THERE AND FIND OUT, GEE, THERE'S SOMETHING REALLY OF MERIT HERE.

LET'S KEEP PEELING THE ONION UNTIL WE CAN FIGURE OUT WHAT WE NEED TO DO WITH THIS, OR WHAT WE THINK WE NEED TO DO WITH IT.

SOMETIMES YOU WALK INTO IT AND REALIZE THERE'S NOTHING THERE.

LET'S GET ON TO THE NEXT DEAL.

SO IT HAPPENS FOR A NUMBER OF REASONS, BUT I COULD TRY TO GRAB SOME DATA THAT MIGHT HELP YOU UNDERSTAND IT MORE, IF THAT WOULD BE HELPFUL.

YES, THAT WOULD BE WELCOME.

THANK YOU. ANYBODY ELSE? ALL RIGHT. THANK YOU.

ALL RIGHT, NEXT ITEM UP, WHICH WE SKIPPED IN OUR LAST MEETING WAS THE ANNUAL INVESTMENT POLICY REVIEW ITEM D.

GOOD AFTERNOON, COMMITTEE CHAIR, WEST AND COMMITTEE MEMBERS.

MY NAME IS JENNY KURZMAN.

I'M THE ASSISTANT DIRECTOR OF TREASURY, THE CITY COMPTROLLER'S OFFICE.

[01:10:01]

IT'S MY PLEASURE TODAY TO GIVE YOU A BRIEFING ON THE ANNUAL INVESTMENT POLICY REVIEW.

IT'S GOING TO BE A VERY SHORT PRESENTATION, BUT WE'LL HAVE A BACKGROUND CITY'S INVESTMENT POLICY AND THE STAFF RECOMMENDATION AND NEXT STEPS.

FOR BACKGROUND, THE PUBLIC FUNDS INVESTMENT ACT, PFA, REQUIRES THAT THE CITY COUNCIL ANNUALLY ADOPT A WRITTEN INSTRUMENT STATING THAT IT HAS REVIEWED THE INVESTMENT POLICY AND THEN HAVE APPROVED ANY CHANGES.

THE INVESTMENT POLICY MUST ADDRESS SAFETY OF PRINCIPAL LIQUIDITY, YIELD DIVERSIFICATION AND MATURITY.

PRIMARILY, WE PUT AN EMPHASIS ON THE SAFETY OF THE PRINCIPAL.

SINCE 1997, THE CITY COUNCIL HAS REVIEWED THE INVESTMENT POLICY AND APPROVE ANY REVISIONS TO THE POLICY INCORPORATING ANY AMENDMENTS, IMPROVE MANAGEMENT OF THE CITY'S INVESTMENT, AND REFLECT ANY ORGANIZATIONAL CHANGES.

ON OCTOBER 26TH OF 2022, THE CITY COUNCIL APPROVED THE ADOPTION OF THE REVISED INVESTMENT POLICY VIA RESOLUTION NUMBER 20 2-1598. NOW, SPEAKING ON THE CITY'S INVESTMENT POLICY, AS YOU KNOW, THE TREASURY DIVISION OF THE CCO MANAGES THE INVESTMENT OF THE CITY FUNDS UNDER THE GUIDELINES OF THIS POLICY IN ACCORDANCE WITH THE FEDERAL AND STATE LAW AND, OF COURSE, THE CITY CHARTER.

ON MAY OF 2023, THE GOVERNMENT TREASURERS ORGANIZATION OF TEXAS, KNOWN AS GTOT, CERTIFIED THE CITY'S INVESTMENT POLICY MEETS THE REQUIREMENTS OF THE PFA IN THE STANDARDS FOR PRUDENT PUBLIC INVESTMENT ESTABLISHED BY THE TOT.

THIS CERTIFICATION IS VALID FOR TWO YEARS.

THE CITY'S INVESTMENT COMMITTEE MEETS ON A QUARTERLY BASIS TO REVIEW THE PERFORMANCE OF THE PORTFOLIO BASED ON THE INVESTMENT POLICY.

ALSO, WE REVIEW ANY ECONOMIC TRENDS COMPLIANCE REQUIREMENT, AND WE ALSO SUBMIT THE RECOMMENDED STRATEGY FOR THE UPCOMING QUARTER WHILE WE MEETING THE OBJECTIVES OF THAT POLICY OF SAFETY, LIQUIDITY AND YIELD.

THE CITY'S INVESTMENT COMMITTEE IS COMPOSED OF THE CHIEF FINANCIAL OFFICER, THE CITY COMPTROLLER, ASSISTANT DIRECTOR OF TREASURY, RIGHT NOW, OUR INTERIM DIRECTOR OF DALLAS WATER UTILITIES, AND THE DIRECTOR OF BUDGET MANAGEMENT SERVICES.

BACK IN APRIL OF 2022, THE CITY APPROVED A THREE YEAR CONSULTANT CONTRACT FOR INVESTMENT SERVICES.

WITH A21 YEAR RENEWAL OPTIONS WOULD MEET OUR PUBLIC FUNDS.

THEY OFFER INVESTMENT SERVICES THAT INCLUDE, BUT NOT LIMITED TO, THE REVIEW AND THEIR REPORTING OF ALL THE CITY'S INVESTMENT ACTIVITY, DIFFERENT ANALYSIS, EVALUATION, AND ALSO THEY ARE REQUIRED TO ATTEND THE QUARTERLY INVESTMENT COMMITTEE MEETINGS.

BUT ON FEBRUARY 13TH OF 2024, THE COMMITTEE WORKING WITH THE INVESTMENT ADVISERS ANALYZED THE PERFORMANCE OF THE PORTFOLIO UNDER THE CURRENT MARKET CONDITIONS IN THE CURRENT INVESTMENT POLICY AS REQUIRED ANNUALLY.

THE TEAM ALSO REVIEWED THE POLICY AND ANY CHANGES MADE TO THE PFA DURING THE YEAR OF 2023.

BACK IN JUNE 18TH OF 2023, SOME PROVISIONS OF THE PFA WERE UPDATED UNDER GOVERNMENT CODE 2256.011 THAT RELATES TO THE REPURCHASE AGREEMENTS.

THESE AMENDMENTS DO NOT IMPACT OR REQUIRE ANY CHANGES TO THE CITY'S CURRENT INVESTMENT POLICY OR STRATEGIES.

SO NOW THE STATEMENT OF THE STAFF, RECOMMENDATIONS AND NEXT STEPS.

AT THE ADVISOR OF INVESTMENT ADVISOR.

WE HAVE NO CHANGES TO THE INVESTMENT STRATEGY IN THE CITY'S INVESTMENT POLICY ARE NEEDED AT THIS TIME.

WE DO RECOMMEND INCORPORATING THE FOLLOWING CHANGES TO THE POLICY.

ONE IS TO UPDATE THE POLICY APPROVAL DATE TO THE APPENDIX A TO INCORPORATE THOSE CHANGES TO THE PFA AND APPENDIX B TO REFLECT THE UPDATED RESOLUTION.

SO WE ASKED HIM TO WHERE REQUESTING THE CITY COUNCIL TO APPROVE THE POLICY ON APRIL 10TH, 2024, WHICH IS ITEM 24-909, TO ADOPT THE CITY'S INVESTMENT POLICY AND INVESTMENT STRATEGIES REGARDING FUNDS UNDER THE CITY'S CONTROL MANAGEMENT. THANK YOU.

AND THIS IS SET FOR AN AGENDA ITEM FOR WEDNESDAY, RIGHT? NO. IT'S SET FOR APRIL 10TH.

OH, OKAY.

GREAT. THANK YOU. MOVE TO RECOMMEND THIS TO THE FULL COUNCIL FOR APPROVAL.

WE HAVE A MOTION TO MOVE TO RECOMMEND THIS TO FULL COUNCIL IN A SECOND.

ANY COMMENTS? NO. ALL THOSE IN FAVOR SAY AYE.

ANY OPPOSED? MOTION CARRIES.

THANK YOU. ALL RIGHT.

NEXT WE'RE GOING TO MOVE ON TO ITEM E, DEVELOPMENT SERVICES MONTHLY PERFORMANCE UPDATE AND PROCESS MAP IMPROVEMENTS.

DO WE HAVE ANYONE HERE FROM DEVELOPMENT SERVICES.

[01:15:02]

HEY, THANKS FOR STICKING WITH US.

YES, SIR. GOOD TO SEE YOU.

WELCOME. WELL, WHEN WE INITIALLY PUT THIS ON THE AGENDA BACK WHEN THIS COMMITTEE WAS FIRST FORMED, WE WANTED TO WORK ON THE PROCESS MAP.

I HAVEN'T SEEN THE MAP SINCE WE FIRST BROUGHT IT UP.

I'VE THOUGHT ABOUT BLOWING IT UP AND PUTTING IT BEHIND US.

YOU DON'T WANT ME TO DO THAT, RIGHT? WELL, WHAT WHAT'S GOING ON WITH THE PROCESS MAP? CAN YOU UPDATE US, PLEASE? WOW. SO, SO SINCE THAT TIME AND SINCE YOUR KIND ENCOURAGEMENT, WE WE'VE RELOOKED AT THINGS.

AND I'M HERE WITH DEPUTY BUILDING OFFICIAL DON DIXON.

AND SO WHAT WE'VE DONE IS WE'VE CREATED A COUPLE OF DEVELOPMENT GUIDES.

THESE ARE QUICK HITS. AND SO WE HAVE THEM OUT THERE ON OUR WEBSITE.

THIS IS A COMMERCIAL QUICK DEVELOPMENT GUIDE, ABOUT 1214 PAGES FOR OUR CUSTOMERS.

AND THEN WE HAVE ONE FOR THE RESIDENTIAL COMMUNITY.

AND SO THESE HAVE LITTLE SHORT TIMELINES AND WORKFLOW PROCESSES.

WE UPDATED OUR WEBSITE.

AND SO FOLKS CAN GET TO THAT BY GOING TO OUR DEVELOPMENT SERVICES HOME PAGE.

AND AT THE BOTTOM OF THE PAGE THERE'S A RESOURCE SECTION.

AND SO THIS IS VERY HELPFUL AS WE WORK ON A WORKFLOW GUIDE.

WE WANT OUR CUSTOMERS AND DEVELOPERS TO UTILIZE THIS.

WE UNDERSTAND WE TRY TO CAPTURE EVERYTHING IN THAT OLD WORKFLOW GUIDE MADE IT CUMBERSOME AND CONFUSING.

AND SO WE'VE DONE THINGS TO MAKE IT A LOT MORE EFFICIENT.

WE ALSO ARE WORKING ON THE OVERALL DEVELOPMENT GUIDE, THE HOLISTIC ONE SO TO SPEAK.

WE SHOULD BE HAVING THAT FINALIZED SOMETIME IN SPRING OF THIS YEAR.

WELL. DEFINITELY WOULD LIKE TO CONTINUE TO SEE THE PROCESS MAP FOR BOTH COMMERCIAL AND RESIDENTIAL, SIMPLIFIED AS MUCH AS POSSIBLE.

THAT IS DEFINITELY WE COULD BRING THAT FORWARD IF YOU LIKE.

I'VE SEEN THE GUIDE.

I THINK IT'S IT'S IT'S DEFINITELY HELPFUL.

I DIDN'T REALIZE THAT WAS MEANT TO REPLACE THE PROCESS MAP, SO THAT'S GOOD TO KNOW.

QUESTIONS. THANK YOU, CHAIR, FOR WONDERING IF I HAVE ANY QUESTIONS WHILE WE HAVE I THINK THREE SENTENCE MEMO THAT ACCOMPANIES THIS BRIEFING, AND IT JUST SAYS THAT YOU'RE AVAILABLE FOR QUESTIONS, BUT THERE'S LITERALLY NO MATERIAL.

AND SO I GUESS MY QUESTION IS WE HAVE THIS ON THE AGENDA, BUT WE HAVE NO INFORMATION.

I MEAN, ARE YOU EXPECTING.

YOU WANT ME TO ASK YOU HOW THINGS ARE GOING? WHAT'S YOUR PERMIT VOLUME, WHAT'S YOUR TURNAROUND TIME AND ALL OF THAT? IF WE'RE HERE FOR ANYTHING THAT THIS COMMITTEE MIGHT, MIGHT HAVE.

SO WE WE'VE JUST BEEN ASKED TO KIND OF BE AVAILABLE IF YOU GUYS HAVE QUESTIONS WHILE WE SPECIFICALLY WORK ON THE WORKFLOW PROCESS AND..

WELL, YOU KNOW, I ADORE YOU, BUT I GUESS WHAT I WOULD LIKE IS AN ACTUAL BRIEFING.

ONE, AND I'LL JUMP IN, CHAIRWOMAN, WE HAD THERE'S ALWAYS BEEN SORT OF THAT RELATIONSHIP BETWEEN ECONOMIC DEVELOPMENT AND THIS COMMITTEE ON IF WE ARE, YOU KNOW, WHAT FALLS THERE AND WHAT FALLS HERE.

AND WE SPECIFICALLY LIMITED THIS PORTION OF THE OF THE PRESENTATION TO THE PROCESS MAP IN THE PAST.

SO IF WE WANT TO EXPAND THAT, I'M OPEN TO THAT, LIKE I'D LOVE TO TALK ABOUT I, I WAS HOPING THEY WERE GOING TO BE HERE TODAY SO WE COULD TALK ABOUT THE USE OF ARTIFICIAL INTELLIGENCE AND PERMITTING.

BUT I THINK THAT'S A CONVERSATION WE NEED TO HAVE ON HOW DETAILED WE WANT TO GET VERSUS WHAT'S HAPPENING IN ECONOMIC DEVELOPMENT.

SO WE PROBABLY SHOULD HAVE THAT CONVERSATION.

THIS HAD BEEN THE PURVIEW OF ECONOMIC DEVELOPMENT WHEN I WAS CHAIR.

I MOVED IT HERE BECAUSE WE WEREN'T SEEING THE IMPROVEMENT THAT MOST COUNCIL MEMBERS THOUGHT WAS NECESSARY.

AND IF YOU ARE COMFORTABLE MOVING IT BACK TO ECONOMIC DEVELOPMENT, SO BE IT.

YOU'RE THE CHAIR.

BUT MY INTEREST IS IN SEEING ADDITIONAL IMPROVEMENT IN HOW WE'RE ADDRESSING PERMITTING.

I THINK YOU'VE MADE ENORMOUS STRIDES ON THE RESIDENTIAL SIDE AND AS WELL AS OUTREACH IN THE COMMUNITY, AND I REALLY APPRECIATE THAT.

BUT IT'S NOT LIKE WE'RE NOT STILL SEEING ISSUES.

AND SO IF YOU FEEL LIKE IT'S BEING HANDLED IN ECONOMIC DEVELOPMENT, I DON'T SERVE ON THAT COMMITTEE, THEN I'M FINE WITH THAT.

IT'S TOTALLY UP TO YOU.

I APPRECIATE THE FEEDBACK, CERTAINLY.

AND I REMEMBER WHEN YOU HAD INCLUDED THAT AS PART OF YOUR COMMITTEE AGENDA, AND IT WAS NOT BEING BRIEFED MONTHLY AT ECONOMIC DEVELOPMENT.

NOW, IT HAS BEEN ADDED BY CHAIR ATKINS AS A MONTHLY AGENDA ITEM.

[01:20:01]

IT'S ACTUALLY THE FIRST ONE ON THEIR AGENDA.

SO I FEEL LIKE IT HAS BEEN MADE A PRIORITY.

I'VE KEPT THIS HERE AS A PLACEHOLDER FOR THESE THINGS.

NOT OPPOSED TO STEPPING IT UP ON WHAT THEY PRESENT, BUT I DON'T WANT TO DUPLICATE THE BRIEFINGS THAT ARE AT THAT CHAIR.

BLACKMON. ANYWAY, SO BUT THE THING IS, IS PERMITTING IS STILL AT ECODEV, RIGHT? IS THAT. THAT'S RIGHT. BUT THIS IS ABOUT THE PROCESS MAP.

SO I THINK THERE ARE TWO DIFFERENT THINGS.

AND I DO THINK THAT THIS IS A GOVERNMENT PERFORMANCE ISSUE.

SO I DO THINK WE MAYBE SHOULD JUST HAVE A FULL BRIEFING TO UNDERSTAND IT, TO MAKE SURE THAT THE PROCESS IS FOLLOWING WHAT THE REALITY IS AND WHAT THE EXPECTATIONS ARE OF THE CUSTOMER, NOT NECESSARILY YOU'RE GETTING YOUR PERMITS DONE, BUT ARE WE CLARIFYING? IS THE PROCESS GETTING STREAMLINED? AND ARE WE USING EVERY RESOURCE WE CAN TO MAKE IT STREAMLINED? DO YOU NEED MORE MONEY IN YOUR BUDGET? ARE YOU COMING TO ASK US FOR MORE MONEY IN THE BUDGET? DO YOU NEED MORE RESOURCES? ARE WE PUTTING EVERYTHING ON, YOU KNOW, USING TECHNOLOGY BASED? BECAUSE I'M HEARING PEOPLE ARE KIND OF IT'S IT'S HARD TO ADJUST NOW.

THEY DON'T HAVE A PERSON TO TALK TO.

THEY NOW THEY HAVE TO GO ONLINE.

AND SO I WOULD LIKE TO TO HAVE A PROCESS BRIEFING, NOT NECESSARILY THE METRICS ON THE ON THAT.

SO AND THAT COULD BE AT WHENEVER I BELIEVE THEY FEEL AS COMFORTABLE, THEY'RE AT A POINT THAT THEY CAN SHOW US IF THEY'RE UNVEILING SOMETHING.

THAT'S JUST MY THOUGHTS.

THAT'S GREAT COMMENT.

AND I GOT I SAW SAMANTHA OVER THERE NODDING THAT SHE TOOK THAT DOWN AND AND WE WILL PLUG THAT IN AT SOME POINT IN THE NEAR FUTURE.

AND DEVELOPMENT SERVICES WOULD WALK US THROUGH THE PROCESS AND BRING US A BIG MAP TO GO ALONG WITH IT.

A SIMPLIFIED BIG MAP.

WITH BIG LETTERS. YEAH.

RIGHT. EXACTLY. ANYTHING.

ALL RIGHT. I THINK WE'RE GOOD.

LET'S MOVE ON TO THE NEXT ITEM, WHICH IS ITEM F, REVIEW OF CITY REAL ESTATE FOR DEVELOPMENT AND REDEVELOPMENT.

I SAW THAT DOCTOR PEREZ HAS PROVIDED US WITH A MEMORANDUM.

NOW, JUST TO REMIND EVERYBODY ABOUT WHAT THIS ITEM IS.

WHEN WE WERE LOOKING AT MECHANISMS TO PAY FOR ALL OF THE MANY THINGS THAT WE NEED TO PAY FOR IN THE CITY, THE PENSION INCREASED BUDGETS, ALL OF THOSE GREAT THINGS.

THE MAYOR HAD ASKED US TO LOOK AT OPPORTUNITIES FOR NOT RAISING TAXES, BUT FINDING OTHER REVENUES.

AND THIS IS ONE WAY WE THOUGHT WE MIGHT BE ABLE TO DO THAT AND WANTED TO BRING STAFF UP TO THE TABLE HERE TO TALK ABOUT SOME OF THE MAJOR REAL ESTATE ASSETS THAT THE CITY OWNS AND HOW WE MIGHT BETTER UTILIZE THEM.

ITEM F IS HAS A LIST OF SOME OF THE MAJOR ASSETS WE'RE LOOKING AT.

DO YOU WANT TO JUST GIVE US A QUICK HIGHLIGHT OF WHERE WE'RE GOING AND WHAT WE CAN EXPECT IN THE COMING YEAR? GOOD AFTERNOON, ASHLEY EUBANKS, DEPARTMENT OF PUBLIC WORKS.

I CAN TELL YOU RIGHT NOW THE PROCESS THAT WE'RE IN WE ARE HAVE COMMENCED THE REQUEST FOR PROPOSAL PROCESS TO OBTAIN APPRAISALS ON THOSE PROPERTIES THAT HAVE BEEN IDENTIFIED IN THE MEMO.

HOPEFULLY THAT PROCESS WE'RE STARTING TO GET TRICKLED IN THOSE PROPOSALS.

AND SO WE WILL LOOK AT THOSE PROPOSALS, REVIEW THEM, AND THEN HOPEFULLY ONCE FUNDING HAS BEEN IDENTIFIED THEN WE WILL PROCEED WITH AUTHORIZING THOSE APPRAISERS TO PROCEED.

SO THAT'S THE PROCESS THAT WE ARE WORKING ON CURRENTLY TODAY.

ONE QUESTION THAT I'LL TURN IT OVER TO MY COLLEAGUE, MR. MORENO. NEXT IS WHERE IS THE BUDGET COMING FROM TO PAY FOR THE APPRAISALS? I THINK WE ALL AGREE IT NEEDS TO HAPPEN, BUT DO WE BUDGET FOR THAT OR WHERE IS IT COMING FROM? BECAUSE THEY ARE NOT CHEAP.

SO JACK IRELAND, CHIEF FINANCIAL OFFICER.

SO THESE ITEMS WERE NOT BUDGETED IN THE CURRENT YEAR.

SO WE ARE LOOKING FOR SAVINGS TO PAY FOR THEM.

ONE OF THEM IS A WATER DEPARTMENT PROPERTY.

ONE OF THEM IS AN AVIATION DEPARTMENT PROPERTY.

THE OTHERS WOULD BE GENERAL FUND DEPARTMENT PROPERTY.

SO WE WOULD INCLUDE IN OUR MID-YEAR BUDGET ADJUSTMENTS AN ITEM FOR Y'ALL'S CONSIDERATION.

OKAY. ANYTHING THAT'S ENTERPRISE FUNDED WOULD BE FUNDED BY THAT ENTITY LIKE AVIATION.

ABSOLUTELY. YES, SIR. OKAY, GREAT.

CHAIR MORENO. THANKS CHAIR.

CAN YOU GUYS HELP ME UNDERSTAND HOW THE SEVEN LOCATIONS WERE SELECTED TO MOVE FORWARD WITH THE APPRAISALS, OUT OF THE TEN? ACTUALLY, WE HAVE PROCEEDED TO GET APPRAISALS ON ALL OF THEM JUST SO WE CAN HAVE A BETTER IDEA WHAT THE VALUE IS.

OKAY. IS THERE A REASON THEY'RE NOT LISTED? YOU MEAN THE ARE WE LOOKING AT THE RIGHT THE TEN THAT ARE ON THE THE MEMO.

RIGHT. IT HAS TEN.

AND THEN NEXT STEPS IT IDENTIFIES THE APPRAISAL PROCESS FOR THE IDENTIFIED PROPERTIES AND THE IDENTIFIED PROPERTIES.

THERE ARE SEVEN OF THEM.

[01:25:01]

COUNCIL MEMBER DIRECTOR OF PUBLIC WORKS.

THERE ARE TEN PROPERTIES.

AND ON THE SEVEN, WE'RE TAKING THE APPRAISAL FIRST, THE THREE PROPERTIES THAT ARE NOT LISTED HERE, WE'RE ALSO DOING THE RFP.

THAT A CONSULTANT, WE CAN MAYBE GET A CONSULTANT TO CONFIRM WHAT THE USE WOULD BE ON THOSE PROPERTIES, AND THAT'S WHY IT'S WRITTEN THAT WAY.

BUT REGARDLESS WE WILL GET APPRAISAL FOR ALL OF THEM.

OKAY. PERFECT. THANK YOU.

THANK YOU.

MISS MENDELSOHN. THANK YOU.

SO THERE'S WORDS BEING USED OVER AND OVER IN HERE, WHICH IS THE DEVELOPMENT AND REDEVELOPMENT.

IS IT YOUR INTENTION TO ACTUALLY SELL ANY OF THESE? WELL, I GUESS COUNCIL MEMBER, IT DEPENDS ON THE VALUE OR THE USAGE THAT EACH PROPERTY CAN HAVE.

THE REASON THAT WE'RE GETTING THE APPRAISAL IS TO HAVE THE VALUE IN CASE IF THE CITY WANTS TO SELL THE PROPERTIES, THEN WE DO KNOW THE VALUE OF IT.

IF AS A PART OF INVESTIGATION, THERE IS A BETTER USE FOR THOSE PROPERTIES, THEN THAT COULD BE AN OPTION ALSO.

BUT YES, THE APPRAISAL WILL BENEFIT IF WE WANT TO SELL IT.

I THINK THERE'S MANY PRIORITIES THAT THE COUNCIL AS A WHOLE WOULD HAVE.

RIGHT? LIKE WE TALK ABOUT HOUSING ALL THE TIME.

WE TALK ABOUT A LOT OF DIFFERENT INITIATIVES.

THERE'S A DISCUSSION ABOUT HOMELESSNESS, THERE'S A DISCUSSION, A LOT OF DIFFERENT THINGS.

WHAT IS YOUR INTENTION ON HOW WE WOULD PRIORITIZE? BECAUSE WE ALSO, YOU KNOW, DESPERATELY NEED A CASH INFUSION FOR POLICE, FIRE PENSION FUND.

WELL, I BELIEVE FOR THOSE PROPERTIES THAT WE'RE GOING TO HAVE AN RFP.

THE RFP SHOULD TELL US.

I MEAN, THE OUTCOME OF THAT RFP SHOULD TELL US WHAT THEY USE OR THE BEST USE CASE FOR THOSE PROPERTIES SHOULD BE.

AND FOR THOSE THAT WE'RE ACTUALLY DOING ONLY APPRAISAL AND THERE IS NO RFP I BELIEVE THAT'S A THING THAT, YOU KNOW, BASED ON THE VALUE THAT WE HAVE OR BASED ON THE I GUESS, THE VISION FOR THAT PROPERTY, THEN WE CAN ONCE WE KNOW THE VALUE, WE CAN ACTUALLY KNOW IF THIS PROPERTY IS ONLY WORTH $1 MILLION, BUT WE CAN DO SOMETHING MORE BETTER.

THAT IS MORE IMPACTFUL THAN HAVING JUST $1 MILLION TO THE POT OF MONEY.

I THINK WE CAN GO THAT ROUTE, TOO.

BUT I DON'T THINK IF WE HAVE FINALIZED THAT YET.

FOR NOW, WE JUST WANT TO SEE HOW MUCH OF THOSE VALUES OR HOW MUCH ARE WORTH OF THOSE VALUES, BASICALLY.

AND THEN IS IT YOUR INTENTION TO REPAY THE COST OF THE APPRAISAL FROM THE PROCEEDS IF THERE IS A SALE? TYPICALLY, YES, THAT'S WHAT OCCURS.

OKAY. AND WOULD YOU REPAY FOR ALL TEN APPRAISALS OR JUST FOR THE INDIVIDUAL PROPERTY THAT WAS BEING CONSIDERED? DEPENDING ON WHERE THE PROPERTY SITS, IF IT'S ENTERPRISE VERSUS GENERAL FUND, THAT'S HOW IT WOULD BE.

SO IT LOOKS LIKE THERE'S EIGHT GENERAL FUNDS IF WE SOLD ONE OF THE GENERAL FUNDS, ARE YOU EXPECTING TO PAY ALL EIGHT APPRAISALS OUT OF THAT PROCEEDS, OR JUST THE ONE APPRAISAL FOR THE ONE PROPERTY? IT WOULD BE DEPENDING ON WHEN THEY SOLD.

YES, THEY WOULD BE PAID OUT OF THE PROCEEDS FROM WHEN THEY SELL ALL OF THEM.

CORRECT. FROM THE ONE.

CORRECT. OKAY.

AND THEN.

WOULD YOU BE COMING BACK TO THIS COMMITTEE FOR ADVICE ON THIS, OR ARE YOU GOING TO DO A FULL COUNCIL BRIEFING WHEN YOU HAVE THE APPRAISAL INFORMATION? DEFINITELY WE WOULD BE COMING BACK TO THIS COMMITTEE.

TO THIS COMMITTEE. CORRECT, YES, MA'AM.

OKAY. THANK YOU. CHAIR.

MORENO. THANK YOU.

I HAVE A QUESTION.

I KNOW THAT WE'RE GOING TO POTENTIALLY BE DOING RFPS FOR THESE ONCE WE GET THOSE APPRAISALS.

BUT THERE, ARE THERE OPPORTUNITIES FOR DIRECT SALES, FOR EXAMPLE, IF WE'RE WORK IF THERE IS A MASTER DEVELOPMENT IN ONE OF THESE AREAS AND IT WOULD COMPLEMENT THAT PROJECT THAT'S ALREADY IN PROCESS.

IS THERE OPPORTUNITIES FOR DIRECT SALES? YES, SIR. THERE IS.

I THINK THAT THE RFP PROCESS AS WELL ONCE A LET'S SAY IF IT GOES THROUGH THAT PROCESS, A DEVELOPER WOULD BE CHOSEN.

AND THEN I GUESS AT THE END OF THE PROCESS, A DIRECT SALE CAN OCCUR.

IF YOU'RE MEANING A DIRECT SALE PRIOR TO THE RFP PROCESS, DEFINITELY.

STATE LAW ALLOWS US TO DO THAT AS LONG AS THERE IS A PUBLIC PURPOSE ATTACHED.

OKAY. THANK YOU. ANYBODY ELSE? ALL RIGHT. THANK YOU SO MUCH.

OH, WAIT. I'M SORRY. I HAD A FOLLOW UP QUESTION ON WHAT YOU JUST SAID.

SO IF OUR INTENTION IS TO SELL IT, NOT REDEVELOP IT INTO SOMETHING ELSE, WHY WOULD WE NEED TO DO AN RFP? THE RFP IS TO FIND THE BEST DEVELOPMENT FOR THE PROPERTY AS WELL AS THE DEVELOPER.

THERE ARE INSTANCES WHERE I KNOW WITH TODS ECONOMIC DEVELOPMENT HAS BEEN WORKING ON AT THE END OF THE PROCESS, ONCE THAT DEVELOPER HAS BEEN CHOSEN, THAT THE END RESULT IS TO SELL THE PROPERTY TO THAT DEVELOPER, AND THERE'S A DEVELOPMENT AGREEMENT IN PLACE TO ENSURE THAT DEVELOPMENT FALLS THROUGH OR GOES THROUGH.

[01:30:06]

SO THERE IS A COMPONENT AT THE END OF THE PROCESS, IF THAT'S WHAT WE CHOOSE TO, TO SELL IT OVER.

OR WE COULD KEEP IT WITHIN THE CITY'S COFFER.

AND THEN WE COULD EITHER DO SOME TYPE OF GROUND LEASE.

THERE'S SO MANY DIFFERENT OPTIONS THAT WE CAN CONSIDER AT THAT TIME.

SO BEFORE YOU START WRITING RFPS AND GOING THROUGH THAT VERY LENGTHY PROCESS, YOU'RE GOING TO FIRST BRING BACK THE APPRAISAL, RIGHT? BECAUSE THERE'S OTHER KINDS OF YOU KNOW, WE COULD DO A SEALED BID, RIGHT? AND JUST SELL IT OUT.

YES. ONCE ALL THAT INFORMATION, THE VALUES COME BACK, WE WILL PRESENT IT TO THE COMMITTEE.

AND THEN DID YOU HAVE A TIMELINE, THAT WAS THE ONLY OTHER THING I WANTED TO ASK? SURE. WHAT WE'RE SEEING IN THE PROPOSALS THAT WE'RE RECEIVING IS ANYWHERE FROM EACH APPRAISAL TAKING UP TO 90 DAYS.

AND SO I'M HOPING THAT WITHIN A 3 TO 4 MONTH, MAYBE FIVE MONTH TIME FRAME, WE CAN HAVE ALL THOSE APPRAISALS DONE.

GREAT. THANK YOU. ALL RIGHT.

I DON'T SEE ANY MORE LIGHTS.

NOW WE'RE GOOD. THANK YOU.

I WANT TO MOVE. SKIP OVER TO ITEM I, JUST TO BECAUSE I KNOW WE HAVE GUESTS HERE FROM ONCOR ELECTRIC COMPANY.

IS ANDREA, DID SHE STEP OUT? OKAY. NEVER MIND.

WE'LL COME BACK. LET'S DO MOVE ON TO ITEM G.

I BELIEVE WE HAD A COUPLE QUESTIONS ON G.

THAT'S YOU. I DO HAVE QUESTIONS ON G, SO THIS IS THE BUDGET VERSUS ACTUAL REPORT.

SO I GUESS I FIRST HAVE AN OBSERVATION.

WHICH IS THAT OVER THE YEARS IT SEEMS THAT WE'RE CONSISTENTLY UNDER BUDGETING FOR SALES TAX, AND THEN WE MAKE ADJUSTMENTS THROUGH THE YEAR.

BUT LAST YEAR WHEN WE MADE THE SALES TAX ADJUSTMENT, WE OVER ADJUSTED MEANING.

WE MADE THE ADJUSTMENT FOR 15.5 MILLION ADDITIONAL REVENUE WHEN WE ONLY RECEIVED THE 8.5 MILLION.

INCREASE, IS THAT RIGHT? JEANETTE WEEDEN, DIRECTOR OF BUDGET AND MANAGEMENT SERVICES.

SO A COUPLE OBSERVATIONS WERE RELATED TO SALES TAX.

YOU ARE CORRECT THAT FOR TWO YEARS DUE TO PENT UP DEMAND ASSOCIATED WITH THE PANDEMIC, WE DID REALIZE YEAR OVER YEAR GROWTH IN SALES TAX LAST YEAR WAS THE FIRST YEAR WHERE OUR HISTORICAL SPENDING OR OUR PRIOR YEAR ACTUALS REFLECTED HISTORICAL TRENDS.

SO I GUESS MY QUESTION IS, SHOULD WE CONSIDER AMENDING THE BUDGET ONLY WHEN WE HAVE THE ACTUAL REVENUE RECEIVED? MEANING IF WE DO A BUDGET AMENDMENT SIX MONTHS INTO THE FISCAL YEAR, AMEND THE BUDGET TO CAPTURE THAT SIX MONTHS INCREASE, SHOULD THERE BE ONE OR DECREASE, SHOULD THERE BE ONE? AND THEN, AS WE DO ONE AT THE END OF THE FISCAL YEAR, TRADITIONALLY ALSO TRUE THAT NUMBER UP WITH ACTUAL AS OPPOSED TO TRYING TO GUESS WHAT IT'S GOING TO BE AND BEING OFF, I MEAN, SEVEN, $7 MILLION OFF.

SO I CAN TELL YOU THAT HISTORICALLY, WE HAVE NOT AMENDED THE BUDGET AT MID-YEAR BASED ON SIGNIFICANT REVENUE GROWTH.

SO, AGAIN, FISCAL YEAR 21 AND 22 WERE ODD YEARS.

WE HAVE PENT UP DEMAND DUE TO THE PANDEMIC.

OUR FORECAST FOR FISCAL YEAR 20 WAS ACTUALLY LOWER THAN THE BUDGET.

AND THEN AS VACCINES CAME OUT, PEOPLE STARTED YOU KNOW IT WAS PENT UP DEMAND.

WE REALIZED SIGNIFICANT YEAR OVER YEAR GROWTH.

WE DO NOT PLAN TO AMEND OUR BUDGET AT MID-YEAR BASED ON PROJECTED REVENUE INCREASES.

OUR SALES TAX FORECAST IS AT BUDGET.

SO AS I MENTIONED, 21, 22 DIFFERENT YEARS.

HISTORICALLY, WE HAVE NOT HAD AMENDMENTS.

WE HAVE TALKED ABOUT RETURNING TO THE HISTORICAL NORM.

AND THE HISTORICAL NORM IS NO ADJUSTMENTS AT MID-YEAR, WITH THE EXCEPTION OF ADJUSTMENTS TO MULTIYEAR FUNDS.

SO IF DEPARTMENTS HAVE ADDITIONAL REVENUE COMING IN ASSOCIATED WITH GRANT TRUSTS AND OTHER, WE WILL MAKE THOSE ADJUSTMENTS.

BUT ANY ADJUSTMENTS TO THE GENERAL FUND, WE WILL HANDLE THOSE AT END OF YEAR.

SAME THING WITH DEPARTMENTS PROJECTED TO BE OVER BUDGET.

WE HAVE HAD CONVERSATIONS WITH THOSE DEPARTMENTS THAT THEY WILL HAVE TO SORT OF HOLD THE LINE ON EXPENSES, BECAUSE WE WILL NOT BE MAKING ADJUSTMENTS UNTIL END OF YEAR.

OKAY. WELL, I MEAN, IT LOOKS LIKE A LOT OF THE DEPARTMENTS, YOU KNOW, MAYBE WITHIN A CATEGORY ARE OVER UNDER, BUT THAT THEY'RE SORT OF NETTING OUT PRETTY, PRETTY CLOSELY.

SO YOU MUST HAVE HAD A CRYSTAL BALL THIS YEAR.

[01:35:03]

SO THANK YOU.

YOU'RE WELCOME. ANYBODY ELSE? NO. NOW WE'RE GOING TO MOVE ON TO ITEM H, AUDIT OF THE SMALL BUSINESS CENTER.

MINORITY AND WOMEN OWNED BUSINESS ENTERPRISES.

OKAY, SO I REALLY JUST HAVE ONE QUESTION ON THIS.

JOYCE WILLIAMS, DIRECTOR OF THE SMALL BUSINESS CENTER.

YES, MA'AM. HI, JOYCE.

SO MY QUESTION IS THERE IS A STATEMENT IN THERE THAT THERE'S GOING TO BE ON THE MEMO THAT THERE'D BE THAT YOU WOULD CONTINUE CONDUCTING EXTERNAL AND INTERNAL FOCUS GROUPS AND FOR PROPOSED REVISIONS.

WHAT ARE YOU LOOKING TO ASK THE FOCUS GROUPS? BECAUSE ANY CHANGE IN THE POLICY CURRENTLY, RIGHT NOW WOULD IMPACT BOTH INTERNAL AND EXTERNAL STAKEHOLDERS, PRIMARILY OUR DEPARTMENTS.

AN EXAMPLE WOULD BE IF WE ARE LOOKING AT CHANGING THE POLICY OF LOOKING AT HOW WE TRACK AND MONITOR PAYMENTS FROM, AND ALL OF THESE PAYMENTS ARE USUALLY SUBCONTRACTED THROUGH THE DEPARTMENTS ON BEHALF OF THE CITY.

AND IF WE ARE LOOKING AT PUTTING IN COMPLIANCE ISSUES, HOW WOULD THAT IMPACT THE DEPARTMENTS, AS WELL AS LOOKING AT OUR EXTERNAL STAKEHOLDERS, BECAUSE THEY ARE OUR CERTIFYING AGENCY, OUR MINORITY CHAMBERS, OUR WOMEN OWNED BUSINESS CHAMBERS, I MEAN AGENCIES AS WELL.

LOOKING AT LET'S LOOK AT HOW THE CHANGE OF THE POLICY WOULD IMPACT THAT, AND HOW WOULD WE MOVE FORWARD TO ENSURE THAT ALL THE STAKEHOLDERS ARE NOT ONLY INFORMED OF ANY OF THE POLICIES, BUT ALSO HOW WE CAN ENSURE THAT THEY ARE ALL GOING TO BE IN COMPLIANCE, BECAUSE A LOT OF THE INFORMATION SOMETIMES DOESN'T COME FROM US, FROM THE CITY, IT COMES EXTERNAL.

IT ALSO COMES FROM THE DEPARTMENT.

WE WANT TO MAKE SURE THAT EVERYONE UNDERSTANDS THE CHANGES IN THE POLICY, AND THAT COMPLIANCE IS GOING TO BE HELD.

OKAY. WELL, COMPLIANCE IS ACTUALLY WHERE I WAS GOING WITH THIS.

WHO IS ACTUALLY MONITORING COMPLIANCE OF THE CONTRACTS.

THAT SEEMS TO BE A STICKING POINT IN HERE.

YEAH. ONE OF THE THINGS THAT WE'VE WE'VE FOUND OUT IS THAT WHEN WE'RE TALKING ABOUT MWB CONTRACTING AND SUBCONTRACTING AND THIS, THAT MY OFFICE IS SUPPOSED TO BE MONITORING THE PERFORMANCE OF THOSE CONTRACTS AS FAR AS PARTICIPATION AMOUNTS WITHIN THE CONTRACTS THEMSELVES.

SO ON A MONTHLY BASIS, WE'RE TRACKING THE PAYMENTS FOR THOSE AS WELL AS TO ENSURE AT CLOSEOUT THAT THOSE PERFORMANCE GOALS WERE MET. AND SO IS SOMEBODY ON YOUR STAFF DOING THAT NOW, WE HAVE FOUR STAFF MEMBERS RIGHT NOW THAT ARE DOING THAT.

THEY ARE CONTRACT COMPLIANCE.

OKAY. BUT WERE THEY DOING THAT BEFORE THE AUDIT? THEY WERE DOING THAT BEFORE THE AUDIT.

BUT THEY CONCERN WAS BECAUSE OF THE LOAD OF THEM.

THEY WEREN'T DOING IT CONSISTENTLY.

BUT THEY ARE THEY WERE DOING IT QUARTERLY ON A QUARTERLY BASIS INSTEAD OF A MONTHLY BASIS.

THE SYSTEM ITSELF ACTUALLY SENDS OUT A MONTHLY REPORT THAT IS THEN SENT TO AUTOMATICALLY SENT TO THE GENERAL CONTRACTOR, SAYING THAT THERE'S A NOTIFICATION THAT WE SEE THAT THE SUBCONTRACTORS HAVE NOT BEEN PAID.

SO THE NOTIFICATION WAS THERE.

THE SUBCONTRACTING ON A MONTHLY POST POST CONTRACT AWARD ON A MONTHLY TRACKING BASIS WAS NOT DONE CONSISTENTLY.

IT WAS BEING DONE ON A QUARTERLY BASIS.

RIGHT NOW, WE'RE LOOKING AT WE ARE CHANGING THOSE PROCESSES TO ENSURE THAT IT WILL BE DONE ON A MONTHLY BASIS.

SO IT SOUNDS LIKE YOU'RE MAKING SURE THE CONTRACTORS ARE BEING PAID.

WHO'S MAKING SURE THAT THE CONTRACTORS ARE DOING THE WORK? WE ARE ALSO MAKING SURE THAT THE SUBCONTRACTORS WE'RE NOW AS PART OF THE POLICY THAT WAS THERE IN 2012 AND THAT WAS THEN ESTABLISHED AND TRANSFERRED IN 2021, I MEAN, 2020.

WHAT WE ARE ALSO DOING, PUTTING IN PLACE IS TO ENSURE THAT THE STAFF MEMBERS, BECAUSE WHEN THE TRANSITION HAPPENED TO THE SMALL BUSINESS CENTER, THERE WERE SOME THINGS THAT WERE SOME OF THE STAFF WAS ACTUALLY NOT TRANSFERRED WITH THEM.

SO WHAT WE'RE DOING NOW IS TO ENSURE THAT THE STAFF HAS THE INFORMATION AND ALSO ARE BEING PREPARED.

WHEN I SAY PREPARED, I MEAN THEY HAVE THE EQUIPMENT TO BE ABLE TO GO ON SITE AND ACTUALLY VISUALLY, PHYSICALLY SEE THE SUBCONTRACTORS ON SITE.

[01:40:06]

SO WE'VE ALREADY STARTED THAT PROCESS.

WE'VE STARTED THAT PROCESS AS OF LAST MONTH, WE'VE HAD OUR STAFF ALSO GO ON SITE.

HOW MANY? HOW MANY STAFF MEMBERS DO YOU HAVE FOR? OKAY. HOW MANY CONTRACTS ARE YOU MONITORING? THANK YOU FOR THAT QUESTION.

WE MONITOR WELL OVER 1000 CONTRACTS EVERY MONTH.

WOW. PER STAFF.

I DON'T KNOW HOW YOU'RE DOING THAT.

WE'RE. OKAY.

WELL, THOSE ARE ALL MY QUESTIONS.

THANK YOU. THANK YOU.

ANYBODY ELSE APPRECIATE IT.

ALL RIGHT. NOW WE WILL MOVE ON TO ITEM I, THE UPCOMING AGENDA ITEM FRANCHISE AGREEMENT WITH ONCOR ELECTRIC DELIVERY COMPANY, LLC.

I HAVE A COUPLE OF QUESTIONS ON THIS ONE.

I'LL KICK IT OFF.

IS THE MAIN CHANGE THAT WE'RE SEEING IN THIS REVISED AGREEMENT REALLY JUST THE IT'S GONE FROM 15 YEARS DOWN TO FIVE YEARS.

I KNOW THAT'S IN THERE.

AS AND OTHERWISE, IT'S THE ADA REQUIREMENTS.

ALL OF THAT'S UNCHANGED FROM WHAT COUNCIL PREVIOUSLY REVIEWED.

RIGHT. WE'RE REALLY JUST LOOKING AT THE CHANGE IN TERM.

THAT IS CORRECT. THE CAN YOU INTRODUCE YOURSELF, PLEASE? OH, NICK FEHRENBACH WITH BUDGET MANAGEMENT SERVICES, THE FRANCHISE AGREEMENT, WE REDUCE THE TERM TO FIVE YEARS SO WE COULD REVIEW AND TRY AND CLARIFY THE TWO ITEMS THAT COUNCIL BROUGHT UP AT THE LAST SESSION.

OKAY. I HAD READ SOMEWHERE, AND IT MIGHT HAVE BEEN IN THE TRANSPORTATION MATERIALS FOR TOMORROW, THAT THERE WAS GOING TO BE A YEARLY PRESENTATION TO CITY COUNCIL, AND IT WAS EITHER BY STAFF OR BY ONCOR ON THE THE POLE REMEDIATION TO GET THEM ADA COMPLIANT.

DOES THAT RING A BELL? THAT DOES NOT RING A BELL WITH ME, BUT IT COULD BE IN THE TRANSPORTATION BRIEFING THAT'S GOING ON TOMORROW.

OKAY, I'LL ASK THAT TOMORROW.

A COUPLE OF QUESTIONS.

WE HAD OR I GUESS I HAD BROUGHT THIS UP AT THE AT THE AGENDA MEETING IS A SET AMOUNT OF TIME THAT IN WHICH ONCOR WOULD BE IDENTIFYING THE THE POLES THAT ARE NOT ADA COMPLIANT AND THEN A SHARING OF THAT DATA WITH THE CITY, NOT NECESSARILY AS A GOTCHA THING, BUT JUST SO WE KNOW AND WE CAN TRACK INTERNALLY YOU KNOW, WHICH POLES ARE NOT ADA ARE PREVENTING US FROM BEING IN ADA COMPLIANCE. ALL RIGHT.

WHY WAS THAT NOT INCLUDED IN THE AGREEMENT? ENCORE HAS OVER 218,000 POLES WITHIN THE CITY OF DALLAS.

THEY DID PROVIDE US A GIS MAP OF THOSE POLES THAT PUBLIC WORKS OVERLAID WITH OUR STREET AND SIDEWALK MAPS.

OKAY, SO THAT WE'VE NARROWED DOWN THE UNIVERSE A LITTLE BIT SO THAT ABOUT 34% OF THEIR POLES ARE A POTENTIAL CONFLICT.

THAT IS THERE ABOUT 74,000 POLES THAT ARE NEXT TO SIDEWALKS.

BUT DUE TO THE SPATIAL DEFINITION AND THE TWO MAPS, WE CAN'T TELL EXACTLY WHAT'S A CONFLICT.

ONCOR HAS COMMITTED TO INSPECTING THOSE 74,000 POLES THAT ARE THE POTENTIAL CONFLICTS WITHIN THE NEXT TWO YEARS, AND IDENTIFYING THE ONES THAT DO CREATE A CONFLICT.

THEY WILL BEGIN REMEDIATING THOSE CONFLICTS AS THEY'RE IDENTIFIED.

BUT UNTIL WE KNOW THE NUMBER OF POLES IN THE DETAILS OF THE ACTUAL CONFLICT, THEY WON'T COMMIT TO WHEN THEY CAN HAVE ALL OF THOSE POLES CORRECTED.

IS THAT IN THE AGREEMENT, THE 74,000 POLES REVIEW? THAT IS NOT IN THE AGREEMENT.

HOW DO WE ENSURE THAT THAT GETS DONE THEN, IF IT'S NOT IN THERE? TRYING TO THINK OUTSIDE THE BOX.

COULD IT BE PUT IN THE AGREEMENT? IT COULD POSSIBLY BE PUT IN THE AGREEMENT.

I OBVIOUSLY CAN'T GET THAT DONE BY WEDNESDAY.

I DON'T THINK, I'M GLANCING AT MY ATTORNEY, BUT BECAUSE TO PUT IT IN THE AGREEMENT, WE'D HAVE TO INCLUDE THE MAP DETAIL IDENTIFYING THE 74,000 POLES, WHICH IS GOING TO MAKE IT VOLUMINOUS.

BUT HEY, WE GOT LOTS OF PAPER, NO PROBLEM THERE.

ALL RIGHT, WELL, I'M GIVING YOU A PREVIEW OF WHAT'S GOING TO BE COMING UP ON WEDNESDAY.

SO IT'S JUST A HEADS UP THAT I'M COMING WITH THIS ON WEDNESDAY.

AND I'LL JUST PUT IT THIS OUT THERE, LIKE IF THERE WAS A POLE IN THE MIDDLE OF CANTON STREET OR BISHOP AVENUE AND CARS WERE HAVING TO BACK AROUND IT OR DRIVE AROUND IT, WE WOULD AS A CITY BE COLLECTIVELY ALL TRYING TO GET THAT POLE MOVED, BUT IT DOESN'T SEEM TO BE AN ISSUE, YOU KNOW, NOTHING URGENT FOR THESE 74,000 POLES THAT MIGHT BE BLOCKING A SIDEWALK.

AND I KNOW IT'S NOT THAT MANY, BUT.

[01:45:01]

IT JUST THIS IS MY FRUSTRATION.

AND YOU'RE SITTING THERE, SO I'M TAKING IT OUT ON YOU.

BUT IT'S THE WAY WE AS A CITY LOOK AT OUR.

MOBILITY. WE IT'S, I MEAN, CAN YOU IMAGINE IF WE HAD A POST OUT IN THE MIDDLE OF CANTON STREET, OUT IN FRONT OF CITY CITY HALL AND A CAR COULDN'T GET AROUND IT? PUBLIC WORKS WOULD BE OUT THERE RIGHT NOW.

BUT WE'RE NOT, NO ONE SEEMS TO BE CONCERNED ABOUT THESE 74,000 POLES THAT COULD BE BLOCKING SIDEWALKS.

WE HAVE TWO YEARS AS NOT CONTRACTUALLY EVEN REQUIRED TO GET DONE.

IT'S JUST A HOPE THAT ONCOR WILL DO IT, AND I THINK THEY WILL, BUT IT SHOULD BE IN THE CONTRACT.

I'LL LEAVE IT AT THAT.

ALL RIGHT. ANY OTHER COMMENTS? THANK YOU.

ALL RIGHT.

WE ARE MOVING ON TO ITEM M, THE TECHNOLOGY ACCOUNTABILITY REPORT AS OF FEBRUARY 28TH, 2024.

GO AHEAD. HI, BRIAN.

I SEE YOU'RE COMING UP.

I DO HAVE SEVERAL QUESTIONS THIS MONTH, AND I JUST WANT TO TELL YOU HOW MUCH I LOVE THIS REPORT.

SO I WANT TO FIRST SAY CONGRATULATIONS THAT YOU GOT THE SHORT TERM RENTAL ENFORCEMENT DATABASE DONE.

THE P25 RADIOS ARE SO IMPORTANT AND SO MANY YEARS, I THINK THAT STARTED BEFORE WE WERE ALL ELECTED.

AND THEN I KNOW PARKS IS SUPER EXCITED ABOUT THE RECREATION MANAGEMENT SYSTEM.

AND I LOVE THAT YOU ADDED THE I ITEM IN AND I THINK CHAD'S ALL OVER AI RIGHT NOW, SO YOU MUST LIKE THAT TOO.

MY QUESTION FOR YOU IS ABOUT DALLAS ANIMAL SERVICES.

THERE IS A PROJECT THAT WAS SUPPOSED TO BE COMPLETE, I THINK, TODAY.

AND I WAS WONDERING WHERE THAT WAS AT.

AND THEN ALSO, IF YOU COULD SPEAK TO THE FIRE STATION ALERTING SYSTEM.

SURE. THANK YOU.

DOCTOR BRIAN GARDNER, CHIEF, TECHNOLOGY AND INFORMATION SECURITY OFFICER.

I'M GOING TO START WITH THE LAST QUESTION FIRST.

IT IS WITH THE CITY ATTORNEY'S OFFICE, AND THE CONTRACT IS BEING DRAFTED AS WE SPEAK.

AS FAR AS DALLAS ANIMAL SERVICES, MA'AM, I'M GOING TO HAVE TO GET BACK WITH YOU ON WHERE THAT PROJECT AT IS AT.

IT WAS TO BE COMPLETED TO THIS WEEK.

OKAY, WELL, BECAUSE WE HAVE OUR DIRECTOR LEAVING, I WANT TO MAKE SURE THAT WE GET THAT DONE BEFORE SHE GOES.

AND MAYBE THAT WILL HELP THEM WITH THAT TRANSITION.

THE OTHER THING IS, I REALLY WANT TO CALL OUT THE SIGNIFICANT REDUCTION YOU'VE HAD IN THE AVERAGE MEAN TIME TO REPAIR.

I MEAN, YOU'RE AT ONE TENTH OF THE TIME.

IT WAS JUST THIS PAST JUNE.

THANK YOU. YEAH.

THAT LIKE, HOW'D THAT HAPPEN? WELL, A LITTLE BIT THAT GOES INTO THE EVENTS IN MAY AND JUNE, RIGHT? SO WE'VE BEEN DILIGENTLY WORKING ON REDUCING THAT OVERHEAD.

MAKING SURE THAT TICKETS GO TO THE CORRECT PLACES TO THE CORRECT TEAMS TO BE ADDRESSED.

SO THAT IS AN ACTIVE PROJECT WITHIN ITS THAT WE'VE BEEN TRYING TO GET DONE.

OKAY. AND THEN YOU HAD AN OUTAGE FOR DPD ON THEIR CAMERA SERVER.

CAN YOU TELL US HOW THAT IMPACTED THEIR OPERATIONS? SO IF WE'RE REFERRING TO THE L3, THE L3 CAMERA, THAT IS THE OLD SYSTEM THAT WE ARE MOVING OR THE CITY IS MOVING AWAY FROM.

WE ARE WORKING ON DEPRECATING THAT SYSTEM INTO THE NEWER STS AND THE AXON SYSTEMS. OKAY. MY NEXT QUESTION WAS YOU HAVE A LOT OF VACANCIES, SO IT SAYS 20 ARE WAITING TO BE POSTED.

AND I'M WONDERING WHAT YOU'RE WAITING FOR.

AND 21 ARE IN DRAFT AND WHERE YOU ARE IN THE PROCESS? YEAH. THANK YOU FOR THE QUESTION.

FOR THE VACANCIES, WE ARE GETTING THOSE POSTED.

WE DID HAVE A LITTLE DELAY WITH MOVING FROM THE OLD NEO GOV SYSTEM TO THE WORKDAY SYSTEM.

WE HAD THOSE POSTED TOWARD THE END OF LAST YEAR, AND THEN WE HAD TO ROLL BACK.

AND THEN WE ARE ACTIVELY GETTING THOSE POSTED AS WE SPEAK.

OKAY. AND THEN THE LAST ONE I'M JUST GOING TO CALL OUT BECAUSE I ACTUALLY TALKED TO BILL ABOUT THIS ALL THE TIME BECAUSE EVERY TIME I SEE IT, I'M JUST SORT OF TAKEN BACK.

SO WE HAVE 31 MILLION ATTEMPTED EMAILS IN A MONTH, 26 MILLION OF THOSE ARE THREATS, AND ONLY 3.5 MILLION ARE CLEAN EMAILS THAT GET THROUGH.

SO, LIKE I HAVE TOLD HIM, RIGHT.

SO 31 MILLION TRY TO COME AT US AND WE ONLY GET 3.5 MILLION OF THEM.

I MEAN.. YES MA'AM, THAT'S ACCURATE.

SO THAT GOES, THE EMAIL SYSTEM FLOWS THROUGH ONE OF OUR SECURITY TECHNOLOGIES AND THAT'S THE STATISTICS IT PROVIDES.

SO THIS GOT ADDED TO THIS REPORT BECAUSE I WAS SAYING I THINK THERE'S EMAILS I'M NOT GETTING BECAUSE THESE ARE

[01:50:06]

NOT RESIDENTS THAT.

JUST COMPLAIN ALL THE TIME, AND I FEEL LIKE THEY REALLY HAVE SENT THE MESSAGE AND I REALLY HAVEN'T GOTTEN IT.

AND I SEARCHED AND I LOOK AND, YOU KNOW, MAYBE THEY MISSPELLED MY NAME, BUT IT JUST DOESN'T SEEM POSSIBLE.

AND WHEN HE TOLD ME THESE NUMBERS, IT WENT, OH, IT MIGHT HAVE ACTUALLY GONE THROUGH SPAM, AND SO THIS IS A LEGITIMATE EXCUSE FOR US, BUT THANK YOU FOR BUILDING SOMETHING THAT'S CATCHING SO MANY THREATS.

SO I'M GOING TO SAY THE NUMBERS AGAIN, 31 MILLION EMAILS ARE ATTEMPTED TO COME TO US, 26 MILLION OF THOSE ARE THREATS.

AND 3.5 MILLION ARE WHAT THEY CALL CLEAN EMAIL.

AND I JUST THINK THAT IS AMAZING.

AND IF YOU'RE A REPORTER, IT'S ON PAGE 47 OF THE TECHNOLOGY ACCOUNTABILITY REPORT.

BECAUSE YOU KNOW WHAT? YOU SHOULD GET SOME CREDIT FOR GOOD THINGS THAT HAPPEN.

AND SO I JUST WANT TO SAY THANK YOU.

THANK YOU MA'AM OKAY.

BUT I'M JUST GOING TO GO BACK TO WHY I LOVE THIS REPORT.

BECAUSE WITHOUT THIS REPORT, I DON'T FEEL LIKE WE CAN ACTUALLY DO GOVERNANCE IN IT.

AND I STILL THINK THERE'S SO MUCH WE CAN'T POSSIBLY KNOW AS CITY COUNCIL MEMBERS, BUT IT GIVES US AN IDEA OF SORT OF WHAT'S HAPPENING IN THE DEPARTMENT.

AND I WILL SAY THAT I LEARNED THINGS THAT ARE HAPPENING IN OTHER DEPARTMENTS THAT THEY HAVEN'T SHARED, MAYBE BECAUSE THEY THINK IT'S NOT INTERESTING TO US OR THERE'S MORE PRESSING THINGS, BUT IT'S LIKE, OH, I DIDN'T KNOW THAT THIS WAS HAPPENING IN THIS DEPARTMENT, BUT IT'S BECAUSE OF THE WORK YOU'RE DOING.

SO ANYHOW, I THINK THIS IS A GREAT REPORT, AND I JUST WANT TO SAY THANK YOU FOR YOUR HARD WORK.

THANK YOU AGAIN.

ANYBODY ELSE. ALL RIGHT.

GREAT JOB. AND I DO APPRECIATE YOU ADDING THE AI IN THERE.

I LOVE THE TOPIC AND I APPRECIATE THE BRIEFING THAT WAS PREVIOUSLY GIVEN TO US AS WELL AND WOULD LOVE TO KNOW FOR THE FUTURE, LIKE WHAT ARE THE BEST PRACTICES HAPPENING ACROSS THE COUNTRY IN CITIES THAT MUNICIPALITIES ADOPTING ARTIFICIAL INTELLIGENCE? I THINK YOU GUYS TOUCHED ON IT DURING YOUR BRIEFING.

WHAT SOME OTHER CITIES ARE DOING, I'D LOVE TO KNOW, LIKE WHICH CITIES ARE REALLY TAKING THE LEAD ON ADOPTING IT.

SO THANK YOU FOR THE QUESTION.

THE CITY OF SAN JOSE IS ACTUALLY PUT TOGETHER A PANEL OF CITY ENTITIES, INCLUDING DALLAS, ARLINGTON, OTHER ENTITIES HERE TO LOOK AT THAT AND GENERATIVE AI AND ITS IMPACT AND HOW BEST TO USE IT IN GOVERNMENT.

SO IT STARTED DAY ONE AS TODAY, ACTUALLY.

SO IT'S A PANEL THAT'S LIKE IT'S LIKE A WORK GROUP OR SOMETHING, CORRECT? YES, SIR. COOL.

WELL KEEP US UPDATED ON THAT PLEASE.

YES, SIR. THANK YOU, THANK YOU.

ALL RIGHT. WHERE ARE WE AT? ITEM N, OFFICE OF THE CITY AUDITOR, MONTHLY UPDATE ON INTERNAL AUDIT REPORTS BETWEEN JANUARY 13TH AND FEBRUARY 16TH, 2024. THAT IS THE TALENT ACQUISITION.

OKAY. THROUGHOUT, IT'S HIM.

DID YOU GO AHEAD? WELL, I GUESS I'M JUST GOING TO SAY THIS THAT THE POLICE AND FIRE AUDITS.

I THINK THAT WHEN I READ IT, MY QUESTIONS WERE REALLY NOT FOR YOU, MARK.

THEY WERE REALLY FOR COMMAND STAFF.

AND SO I'M GOING TO ASK IF WE CAN BRING THIS BACK AT PUBLIC SAFETY, BECAUSE I THINK IT'S NOT A QUESTION OF HOW YOU DID THE AUDIT OR, OR WHATEVER.

IT'S WELL, WHY ARE WE DOING THAT AND WHY IS THAT HAPPENING? SO SO I WAS JUST GOING TO RESERVE MY QUESTIONS FOR THAT.

ALL RIGHT. THANK YOU.

I DO, I KNOW COUNCILWOMAN WILLIS HAD WANTED TO BE HERE FOR THE TALENT ACQUISITION AUDIT, SO WE MAY BRING THAT BACK NEXT MONTH.

AS A AS A BRIEFING ITEM.

DID YOU. I HAVE A BECAUSE I DO KIND OF AGREE WITH MISS MENDELSOHN.

AND COULD WE JUST MAYBE ON THIS ITEM COLLABORATE TOGETHER ON THAT MEETING? BECAUSE IT REALLY SHOULD BE IN YOUR COMMITTEE.

AND IF MISS WILLIS WANTS TO COME BECAUSE I DON'T IT'S KIND OF NOT GOOD TO HAVE BEEN WAITING HERE AND THEN COME TO YOURS AND DO IT AT THE SAME TIME.

BUT THAT WAY WE COVER ALL BASES.

IT'S JUST TO BE EFFICIENT WITH OUR TIME AND THEIR TIME.

INSTEAD OF BRINGING IT BACK HERE TO HAVE A REPLICA, A REPLICATION OF WHATEVER THE BRIEFING WAS GOING TO BE.

SO, AS YOU KNOW, THE I GUESS THE AUDIT QUESTION NOW OF HOW IS IT PERFORMED ABOUT THE AUDIT, BUT THE FINDINGS SHOULD REALLY BE IN PUBLIC SAFETY.

THERE'S SO MANY COMMAND STAFF THAT ARE SITTING FOR A LONG MEETING THAT I JUST THOUGHT, I'LL SAVE IT.

YOU KNOW, I HAVE ENOUGH QUESTIONS AND JUST A THOUGHT, JUST THE SUGGESTIONS TO GO AHEAD AND ASK THE AUDIT QUESTIONS NOW.

YEAH. TO LIKE THE QUESTIONS AROUND THE PERFORMANCE OF AN AUDIT, NOT NECESSARILY THE FINDINGS, BUT THEN THE FINDINGS AND HOW TO MOVE FORWARD, I DO THINK SHOULD GO IN PUBLIC SAFETY. THAT'S REASONABLE.

AND IS MISS WILLIS ON YOURS AS WELL? SO AND I KNOW MR. MORENO AND I ARE YOU WELL IN THE TALENT ACQUISITION THAT IS BEYOND THAT'S BEYOND JUST PUBLIC HR.

[01:55:03]

THAT'S WITH HR.

SO THAT ONE WE ACTUALLY DO A FULL BRIEFING ON THAT OKAY OKAY.

BUT THE THE PUBLIC SAFETY ONE IS WHAT.

CORRECT. YOU GUYS ARE TALKING. YES.

YES. SO LET'S LET'S JUST ASK THE PROCESS QUESTIONS NOW AND THEN BRING MY QUESTION.

OKAY. WELL DO YOU HAVE ANY PROCESS QUESTIONS.

SO WHEN WE DO THE.

SO MARK CAN WE ADD THIS AS A TOPIC THEN JUST ON THE TALENT ACQUISITION PIECE AS AN ACTUAL BRIEFING FOR NEXT MONTH, MAKE MARK SWANN CITY AUDITOR, BECAUSE THIS IS ACTUALLY THREE AUDIT REPORTS COMBINED IN ONE FIRE, ONES POLICE..

RIGHT.. ONES HR CIVIL SERVICE.

SO I'M ASSUMING YOU'RE I HEARD YOU WANTED TO HAVE PUBLIC SAFETY DO THE FIRE AND POLICE OR YOU WANT TO DO IT ALL HERE.

IF IT'S MY CHOICE, I'D LIKE YOU TO BE AT THE PUBLIC SAFETY MEETING.

AND I'D LIKE TO PUT THIS AS AN AGENDA ITEM.

BUT I'D LIKE BOTH COMMAND STAFFS TO BE THERE BECAUSE I THINK THE QUESTIONS ARE ABOUT HOW COULD THIS BE DONE DIFFERENTLY? WHY ARE YOU DOING THIS? AND I THINK THERE BEYOND THE QUESTIONS TO ASK YOU, LIKE YOU'RE LIKE, WELL, I JUST DID THE AUDIT.

I DON'T MAKE THOSE GENERAL ORDERS.

OKAY, BUT DID YOU WANT TO GO BACK TO GPFM FOR THE HR CIVIL SERVICE OR THAT'S RIGHT.

OKAY. THAT'S WHAT. AND WE'LL SET IT AS A BRIEFING ITEM SO THAT WE CAN MAKE SURE IT'S, IT'S EARLY AND THERE'S LOTS OF QUESTIONS.

OPPORTUNITY FOR QUESTIONS.

SO ALL RIGHT ANYTHING ELSE ON N? THAT'S A NO. ALL RIGHT. WE'LL MOVE ON TO O, THIS IS THE INTERNAL AUDIT REPORTS BETWEEN FEBRUARY AND MARCH.

ANYTHING ON THAT? I JUST HAVE THE SAME QUESTION.

SAME. SO IT'S IT'S THE SAME QUESTION I HAD FOR THE SMALL BUSINESS AUDIT.

IT SEEMED TO BE THE SAME ISSUE OF WHO'S MONITORING CONTRACTS.

AND IS THERE AN IDENTIFIED ROLE THAT'S DOING THAT, OR WILL THERE BE AN IDENTIFIED ROLE? WELL THERE IS EVERY DEPARTMENT IS RESPONSIBLE FOR MONITORING THEIR OWN CONTRACTS.

AND THERE'S THE DCOR PROGRAM THAT PROCUREMENT HAS TO TRAIN INDIVIDUALS IN EVERY DEPARTMENT ON MONITORING THE, YOU KNOW, THE TERMS AND CONDITIONS AND PERFORMANCE OF CONTRACTS.

SO THE, I GUESS, THE THE GOVERNANCE PROBLEM WITH WHAT YOU'RE SAYING IS THAT EACH DEPARTMENT'S MONITORING THEIR OWN CONTRACTS IS, YOU KNOW, SOME ARE MORE I'LL SAY PERSNICKETY THAN OTHERS.

SO WE'VE GOT SHERRI KOWALSKI SITTING BACK THERE.

SHE'S DONE A GREAT JOB TIGHTENING UP THAT COMPTROLLER'S OFFICE.

YOU CAN SEE THE EFFICIENCY HAPPENING, BUT SOME DEPARTMENTS MAY NOT BE AS ORIENTED TO COMPLIANCE ISSUES, WHICH I THINK TAKES A CERTAIN KIND OF BRAIN.

RIGHT? LIKE YOU HAVE TO BE VERY DETAILED AND VERY PROCESS ORIENTED, AS OPPOSED TO SOME THAT ARE MORE, YOU KNOW, CREATIVE OR GENERAL IDEAS.

AND SO, IS THERE LIKE ON AN ORG CHART, COULD YOU SAY THIS POSITION IS THE ONE WHO'S DESIGNATED TO DO IT? AND THEN IF IT DOESN'T HAPPEN, THAT PERSON IS HELD ACCOUNTABLE.

BECAUSE IT SEEMS LIKE THIS IS THE AUDIT FINDING IN ALMOST EVERY DEPARTMENT.

YEAH, AND IT HAS BEEN GOING ON FOR YEARS IN THE CITY.

AND THE GIVE YOU SOME DEPARTMENTS ACTUALLY HAVE AUDIT POSITIONS THERE FOR THAT PURPOSE.

AND PUBLIC WORKS I KNOW HAS AN AUDIT POSITION.

PARKS AND REC FOR ALL THEIR CONTRACTS HAS A SIMILAR POSITION.

I'M NOT CERTAIN WHAT THE OTHER AREAS.

BUT THE WHOLE ROLLOUT OF THE DCORP PROGRAM WAS TO DO JUST WHAT YOU'RE DESCRIBING, TO HAVE SOMEONE WHO'S RESPONSIBLE AND HAS BEEN TRAINED AND BE THAT DEPARTMENT'S GO TO PERSON FOR MONITORING CONTRACTS.

SO WHEN THEM WHEN THERE'S AN AUDIT FINDING THAT SAYS, YEAH, THIS REALLY ISN'T HAPPENING OR IT'S NOT HAPPENING TO THE STANDARDS THAT IT OUGHT TO LIKE, WHERE'S THE ACCOUNTABILITY? WELL, THAT'S THROUGH THE AUDIT REPORT.

AND WELL, I GUESS THE LAST ONE WE SAY, LIKE SOME OF ITS CONTRACTS, THEY CAME BACK, THEY HAD NOT BEEN TRAINED IN THE DCOR WHEN WE STARTED THE AUDIT, BUT DURING THE AUDIT PROCESS, THEY WENT AND GOT THE DCOR TRAINING AND GOING FORWARD FOR MONITORING.

HOW MANY DEPARTMENTS HAVE NOT BEEN TRAINED WITH DCOR? YOU KNOW I CANNOT.

THAT'S A PROCUREMENT QUESTION.

OKAY. WELL, WE KNOW THAT.

OH, THERE SHE IS. AND YOU MAY NOT KNOW THIS OFF THE TOP OF YOUR HEAD.

[02:00:05]

HOW MANY HAVE BEEN TRAINED OR NOT? THANK YOU FOR THE QUESTION.

DANIELLE THOMPSON, DIRECTOR OF THE OFFICE OF PROCUREMENT SERVICES.

YOU ARE CORRECT. I DON'T KNOW THAT NUMBER OFF THE TOP OF MY HEAD.

HOWEVER, JUST FOR CONTEXT, THE DIVISION OF CONTRACT MANAGEMENT WAS CREATED BACK IN 2021 WITHIN THE OFFICE OF PROCUREMENT SERVICES FOR JUST THAT REASON FOR CITYWIDE CONTRACT COMPLIANCE AND VENDOR MANAGEMENT.

SO THROUGH OUR CONTRACT MANAGEMENT DEPARTMENT, WE HAVE DCOR, WHICH WAS JUST REFERENCED IS THE DALLAS CONTRACTING OFFICER TRAINING.

SO THERE'S FOUR LEVELS OF TRAINING.

THERE IS TESTING AND CERTIFICATION.

SO THE IDEA WAS TO HAVE SOMEONE TRAINED IN EVERY SINGLE DEPARTMENT TO COORDINATE WITH PURCHASING ON CONTRACT COMPLIANCE.

SO ALL OF OUR DEPARTMENTS HAVE PARTICIPATED.

I CAN GET YOU THE NUMBERS AND ACTUAL CERTIFICATION.

WE REPORT THEM OUT ON A MONTHLY BASIS TO OUR EXECUTIVE LEADERSHIP TEAM.

AND SOME OF THE RAMIFICATIONS FOR NOT FOLLOWING COMPLIANCE IS WHEN WE HAVE RATIFICATION.

SO WHENEVER A DEPARTMENT GOES OFF OF CONTRACT, OUT OF CONTRACT, THERE IS A RATIFICATION PROCESS.

THEY HAVE TO GO THROUGH TRAINING AND IT IS ACTUALLY CODIFIED IN THEIR RECORDS.

SO THERE IS NOT JUST A PASSIVE PROCESS.

IT'S ACTUALLY DOCUMENTED.

SO FOR PROCUREMENT SERVICES, OUR CONTRACT COMPLIANCE, WE DO HAVE TRAINING.

WE HAVE CERTIFICATION.

AND THEN THERE IS THAT CONSEQUENCE WHICH WAS DOCUMENTED IN THEIR IN THEIR FILE FOR THE DEPARTMENT.

OKAY. WELL, YOU KNOW, IT SOUNDS, YOU KNOW, SORT OF NITPICKY, BUT OF COURSE, YOU KNOW, THIS IS TAXPAYER DOLLARS AND IT'S ALSO THE CITY AT RISK.

I MEAN, WE HAD GIANT HUD AUDIT BECAUSE WE WERE NOT MONITORING OUR CONTRACTS PROPERLY OR DOCUMENTING THINGS.

SO. OKAY, WELL, CAN WE GET A LIST OF WHAT DEPARTMENTS HAVE A DESIGNATED PERSON? ABSOLUTELY. SO WE CAN PROVIDE A LIST OF ALL THE DEPARTMENTS THAT HAVE HAD TRAINING.

AGAIN, WE PRESENT THIS EVERY SINGLE MONTH.

SO WE CAN GIVE YOU A FULL FORECAST OF ALL THE PARTICIPATION.

AND WE ALSO EXPLAINED TO ALL OF OUR DEPARTMENTS THROUGHOUT THE PROCUREMENT PROCESS THAT THE ADMINISTRATIVE DIRECTOR FOR FIVE.

ALL DEPARTMENTS ARE RESPONSIBLE TO HAVE SOMEONE MANAGE THEIR CONTRACTS.

PROCUREMENT MANAGES THE SOLICITATION UP TO THE CONTRACT EXECUTION.

EVERY DEPARTMENT IS RESPONSIBLE FOR MANAGING THEIR CONTRACTS.

SO THERE IS THAT DIALOG, THAT RESPONSIBILITY IS COMMUNICATED.

BUT FOR THE DCOR, WE CAN DEFINITELY PROVIDE YOU ALL THAT DATA.

OKAY. WELL I'M JUST GOING TO LEAVE WITH THIS LAST SORT OF GOVERNANCE DISCUSSION, WHICH IS WHEN WE WERE DEALING WITH THE WHOLE BOARDS AND COMMISSION AUDIT, AND EVERY DEPARTMENT WAS SUPPOSED TO HAVE SOMEBODY WHO WAS TRAINED ON HOW TO DO BOARD AND COMMISSION, HOW TO UPLOAD AGENDAS AND MINUTES, BUT YET NOBODY DID.

THERE WERE LIKE YEARS WITH THIS INFORMATION MISSING, AND THERE WAS AN UNWILLINGNESS TO SWITCH FROM THE.

EVERY DEPARTMENT WILL HAVE SOMEBODY MODEL WHERE YOU COULDN'T EVEN IDENTIFY WHO THAT PERSON WAS, BECAUSE MAYBE THEY WENT OUT ON FMLA OR THEY TRANSFERRED AND THEY DIDN'T REALLY TRAIN ANYONE.

THERE WAS JUST NO ACCOUNTABILITY FOR IT.

I MEAN, I SORT OF FEEL LIKE WE'RE IN THE SAME SCENARIO.

WHERE IS IT REALLY PROPER FOR EACH DEPARTMENT TO DO THIS MONITORING, OR DO YOU NEED A CENTRALIZED MONITORING THAT IS, YOU KNOW POSSIBLY UNDER PROCUREMENT BECAUSE, YOU KNOW, YOU HAVE SO MANY LEGAL FRAMEWORKS THAT YOU HAVE TO FOLLOW.

AND I THINK YOU ARE A VERY PROCESS ORIENTED PERSON.

SO HAVE YOU CONSIDERED THAT THERE'S AN ALTERNATE WAY TO DO THIS, THAT? MIGHT PROTECT US BETTER.

SO THERE ARE A LOT OF OPPORTUNITIES TO INCREASE OUR CONTRACT COMPLIANCE EFFICIENCY.

ONE OF THE CHALLENGES HERE AT THE CITY IS THAT OUR PROCUREMENT IS NOT COMPLETELY AND WHOLLY CENTRALIZED.

OF COURSE, MY OFFICE MANAGES THE GOODS AND SERVICES.

HOWEVER, ALL THE CONSTRUCTION, ARCHITECTURAL AND ENGINEERING IS THE RESPONSIBILITY OF THOSE DEPARTMENTS.

SO WHEN WE THINK ABOUT CONTRACT COMPLIANCE, THAT ALSO COVERS OUR SCOPE OF GOODS AND SERVICES.

SO YES, I HAVE SEEN IN OTHER ORGANIZATIONS AND IN MY PAST EXPERIENCE, WE HAVE HAD THAT CENTRALIZED JUST FOR THAT, THAT RISK ALONE TO HAVE COMPLETE OVERSIGHT AND TRANSPARENCY WITH ONE CENTRALIZED MANAGEMENT GROUP.

BUT I'VE ALSO SEEN IT ALSO SPACED OUT.

BUT WITH A CITY THIS LARGE WITH THE VOLUME AND QUANTITY OF CONTRACTS.

I MEAN, WE DID, YOU KNOW, BILLIONS OF DOLLARS IN CONTRACTS.

CURRENTLY, MY STAFF IS MANAGING 200 ACTIVE CONTRACTS JUST FOR GOODS AND SERVICES.

SO WHEN YOU THINK ABOUT THE VOLUME, WHAT WOULD THAT LOOK LIKE AS IT RELATES TO PERSONNEL? WE'RE TALKING A PRETTY LARGE GROUP TO DO IT EFFECTIVELY.

BUT YES, THERE ARE BEST PRACTICES.

IT IS BEING DONE ACROSS THE NATION, BUT THERE ARE DIFFERENT MODELS AND I'M OPEN TO THOSE.

OKAY. WELL CHAIR, I JUST WOULD LIKE TO HAVE THAT POINTED OUT THAT, YOU KNOW, PERHAPS WE WANT TO THINK THROUGH HOW THAT WORKS.

[02:05:05]

IT'S BEEN A CHALLENGE THAT I FEEL LIKE.

I HAVE SEEN ALL THE YEARS I'VE BEEN ON COUNCIL, AND I DON'T THINK IT'S THE FAULT OF ANY ONE PERSON, I THINK IT'S.

IT'S IT'S JUST NOT BEEN THE TOP PRIORITY.

AND THE TOP ITEM IN A IN A JOB DESCRIPTION, IT'S LIKE OH.

AND ONE OF THE OTHER THINGS YOU DO IS CONTRACT MONITORING.

AND YOU KNOW, WE ARE TALKING ABOUT A LOT OF MONEY.

AND, YOU KNOW, I JUST I JUST WANT TO BRING THAT UP BECAUSE HERE IT IS AGAIN.

SECOND TIME IN IN JUST THIS WEEK'S AGENDA, THIS MONTH'S AGENDA.

AND IT'S THE SAME THING AND IT'S THROUGHOUT MANY OF OUR AUDITS, THE SAME ISSUE OF, WELL, WE'RE NOT DOING WHAT WE SHOULD ON CONTRACT MONITORING.

SO THOSE ARE MY COMMENTS ON THIS.

THANK YOU, THANK YOU, THANK YOU.

ANYBODY ELSE ALL RIGHT.

ANY QUESTIONS ON ITEM P THE TWO MONTH FORECAST? ALL RIGHT. THANK YOU.

AND WITH THAT BEING SAID.

* This transcript was compiled from uncorrected Closed Captioning.