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[Council Government Performance & Financial Management Committee on September 23, 2024.]
CAN YOU TURN YOUR CAMERA ON, PLEASE? THERE HE IS.>> THIS MEETING IS BEING RECORDED.
>> THANK YOU. IT'S OFFICIALLY 1:30 PM ON SEPTEMBER 23RD, 2024.
I CALL THIS MEETING OF THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE TO ORDER.
ITEM A ON THE AGENDA OR ACTUALLY ITEM 1 IS OUR MINUTES.
CAN I GET A MOTION TO APPROVE THE MINUTES FROM AUGUST 26TH?
NEXT, WE WILL GO AHEAD BECAUSE WE'RE GOING TO WAIT ON OUR COLLEAGUES TO GET UP HERE.
I WANT TO GO AHEAD AND TAKE THE CALENDAR FIRST, WHICH IS ITEM G. THE OFFICE OF GOVERNMENT AFFAIRS HAS PROVIDED US WITH THIS CALENDAR.
CARRIE, OBVIOUSLY, PLEASE DON'T GO THROUGH THE WHOLE THING, BUT IF YOU WANT TO JUST GIVE US ANY HIGHLIGHTS, WE SHOULD BE AWARE OF GO AHEAD, AND THEN I DO THINK I HAVE A MOTION FROM MY COLLEAGUE OVER HERE TO MOVE AT LEAST ONE DATE.
>> THANK YOU, CHAIR. FOR THE RECORD, I'M WEARING MY MCC HAT TODAY, CARRIE ROGERS, AND I'M SOMETHING WITH MCC.
EVERY YEAR, THE CITY COUNCIL IS REQUIRED TO ADOPT THEIR OFFICIAL MEETINGS CALENDAR, AND SO THAT'S WHAT YOU HAVE BEFORE YOU TODAY.
WE'VE TAKEN INTO CONSIDERATION THE VARIOUS CITY HOLIDAYS.
THOSE ARE THE PAID EMPLOYEE HOLIDAYS AS WELL AS BUDGET ACTIONS ARE INCLUDED AS WELL, AND THE INAUGURATION DATE.
IF THERE ARE ANY QUESTIONS OR COMMENTS RELATED TO THE CALENDAR, DO LET US KNOW.
I DID RECEIVE SOME FEEDBACK FROM ONE OF THE MEMBERS.
IF THERE ARE ADDITIONAL CHANGES, YOU CAN PROVIDE THOSE HERE OR FEEL FREE TO SEND ME AN EMAIL AFTERWARDS.
WE'RE PLANNING ON BRINGING THIS ITEM TO THE FULL CITY COUNCIL FOR ACTION ON OCTOBER 8TH.
>> YES. I'M TAKING MY LEE KLEIMAN HAT, AND ANYWHERE I SAW A 4TH MONDAY MEETING WITH A 5TH WEDNESDAY COUNCIL MEETING, I MOVED OVER TO WHERE IT SEEMED LIKE IT WAS FEASIBLE.
THE MEETING ON THE JANUARY 27TH MOVING TO JANUARY 14TH.
>> THAT IS THE FIRST DAY OF THE LEGISLATIVE SESSION?
>> SOMETIMES COUNCIL MEMBERS TRAVEL THAT DAY, SO JUST NOTING.
>> THAT'S DULY NOTED. THEN THE NEXT ONE IS APRIL 28TH.
>> WE CAN DO THE 7TH INSTEAD [INAUDIBLE]
>> WHY DON'T WE JUST MOVE IT TO THE 7TH?
>> JANUARY 7TH, THAT WAY WE GET THEM ALL KNOCKED OUT.
THEN APRIL 28TH MOVED TO THE 22ND?
>> OCTOBER 27TH TO OCTOBER 21.
I KEPT THE NOVEMBER 17TH BECAUSE IT'S THE ONLY OTHER DAY IS VETERANS DAY AND WHERE IT'S A HOLIDAY.
I THINK THERE IS NO OTHER PLACE TO PUT IT, I JUST LEFT IT ON NOVEMBER 17TH.
I THINK THOSE ARE THE ONLY ONES THAT I SAW.
USUALLY HOUSING OCCURS IN THE MORNINGS OF THE GPFM AFTERNOON MEETING, SO OUR CHAIR FOR HOUSING IS NOT UP HERE YET.
BUT CARRIE, IF YOU COULD JUST CHECK WITH HIM AND SEE IF HE WANTS TO FOLLOW SUIT, BECAUSE I THINK FOLKS WOULD APPRECIATE THAT FROM THAT COMMITTEE AS WELL.
>> THAT'S FINE, CHAIR. I'M ONLINE.
>> HEY, THERE HE IS. [LAUGHTER] YOU HEAR THAT CARRIE?
>> HE'S OKAY WITH THAT. IS THAT WHAT I HEARD?
>> THEN JUST MAKING SURE ALL OUR RELIGIOUS HOLIDAYS ARE ACCOUNTED FOR SO THAT WE'RE ADJOURNING AND NOT MEETING TO COME TO WORK.
JUST MAKE SURE THAT WE ARE OBSERVANCE WITH ALL THAT.
>> YES, MA'AM. WE'LL TRIPLE CHECK. THANK YOU.
>> COUNCIL MEMBER RESENDEZ, DO YOU HAVE ANYTHING ON THE CALENDAR?
>> GREAT. ANYTHING ELSE, CARRIE?
>> THAT'S IT, SIR. THANK YOU SO MUCH.
>> YOU ARE DONE. I GUESS WE'RE GOING TO GO AHEAD AND MOVE ON TO ITEM B AT THIS POINT.
WE'VE GOT OUR GUEST HERE, OUR FRIEND FROM THE FAMILY GATEWAY.
I'M GOING TO LET YOU TAKE IT AWAY.
JUST FOR FOLKS WATCHING IF THEY'RE CURIOUS WHY THIS ITEM IS ON HERE,
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IT IS MORE OF A HOUSING HOMELESSNESS SOLUTIONS RELATED ITEM, BUT BECAUSE THIS IS A CITY PROPERTY, AND IT GOES BACK TO FISCAL RESPONSIBILITY AND ACCOUNTABILITY, THIS IS JUST SOMETHING WE'VE GOT TO BE GOOD STEWARDS FOR OUR PROPERTIES.WE'VE GOT TO BE GOOD STEWARDS FOR OUR NON-PROFITS.
I'VE ASKED ELLEN TO BE HERE TO JUST TELL US ABOUT HER EXPERIENCE BECAUSE WE WANT TO MAKE SURE FOR OUR NON-PROFITS THAT THEY DO HAVE A GOOD EXPERIENCE WORKING WITH THE CITY IN THE FUTURE, SO WE CONTINUE TO HAVE GOOD PARTNERS ACROSS THE CITY. TAKE IT AWAY, PLEASE.
>> WONDERFUL. THANK YOU SO MUCH FOR THE OPPORTUNITY TO SPEAK TO YOU TODAY.
AS YOU NOTED, FAMILY GATEWAY IS NO STRANGER TO THE CITY OF DALLAS.
WE WERE FOUNDED BY MAYOR ANNETTE STRAUSS, AND WE'VE BEEN A FAITHFUL CITY PARTNER FOR ALMOST FOUR DECADES AND HAVE GROWN AND EXPANDED TO MEET THE NEEDS OF OUR COMMUNITY, MORE THAN DOUBLING OUR BUDGET AND QUADRUPLING THE NUMBER OF FAMILIES SERVED OVER THE LAST EIGHT YEARS TO KEEP PACE WITH THE NEEDS OF FAMILIES WITH CHILDREN EXPERIENCING HOMELESSNESS IN OUR COMMUNITY.
MULTIPLE COUNCIL MEMBERS, THE MAYOR, INTERIM CITY MANAGER TOLBERT, HAVE SUPPORTED AND CHAMPIONED OUR WORK, AND FOR THAT, WE ARE VERY GRATEFUL.
I WANT TO START WITH AN END OF JUNE 2024 EMAIL FROM BUILDING SERVICES THAT FOLLOWED OUR REQUEST IN EARLY JUNE ABOUT THE SIGNIFICANT INFRASTRUCTURE DAMAGE TO OUR FACILITY FROM THE END OF MAY STORM.
THE GIST OF THE EMAIL IS THIS.
"THE CITY COMPLETED REPAIRS AND GOT AN ESTIMATE FOR A NEW ROOF ON THIS PROPERTY LAST SUMMER IN 2023.
FUNDS FOR A NEW ROOF WERE NOT THEN AND ARE NOT NOW IN 2024 AVAILABLE IN EITHER OUR BUDGET OR IN THE OFFICE OF HOMELESS SOLUTIONS BUDGET." THE CITY KNEW THAT THIS WAS THEIR RESPONSIBILITY, HAVING ALREADY DONE REPAIRS ON IT.
IT THEN MADE ME WONDER IF DELAYS THAT WE EXPERIENCED FOLLOWING THE STORM WERE REALLY BECAUSE CITY STAFF DIDN'T KNOW HOW THEY WERE GOING TO PAY FOR IT, AS THIS EMAIL SUGGESTS.
I THINK IT MAY BE APPROPRIATE LOOKING FORWARD TO DETERMINE IF THERE ARE SUFFICIENT EMERGENCY FUNDS IN PLACE TO EMPOWER CITY STAFF TO ACTIVATE QUICKLY IN THE FACE OF WEATHER OR OTHER URGENT CRISES.
IT MAY ALSO BE WORTH AN EXERCISE IN TAGGING CITY ASSETS AS TO WHETHER OR NOT THEY ARE CRITICAL TO EMERGENCY SERVICES, WHICH OUR FACILITY CERTAINLY IS BEING THE ONLY EMERGENCY SHELTER FOR FAMILIES WITH CHILDREN THAT WILL TAKE ANY FAMILY IN OUR COMMUNITY.
AS WE KNOW, THE DELAYED RESPONSE RESULTED IN EVEN MORE DAMAGE.
AT A FACE-TO-FACE MEETING WITH CITY STAFF IN MID AUGUST JUST BEFORE AN INSURANCE ADJUSTER WAS TO VISIT, ONE LEADER STATED, "IN HINDSIGHT, WE SHOULD HAVE HAD AN INSURANCE ADJUSTER OUT THERE THE WEEK AFTER THE STORM." I COMPLETELY AGREE WITH THAT.
THAT'S PERHAPS ANOTHER THING TO ACTIVATE ON AS AN IMPROVEMENT FOR THE FUTURE WITH ANY WEATHER RELATED CHALLENGES TO ACTIVATE THE CITY'S RISK TEAM IMMEDIATELY.
I HAVE SOME FLOOR PLANS FOR EACH OF THE THREE FLOORS OF THE BUILDING THAT ARE COLOR CODED TO REFLECT THE DAMAGES TO THIS PROPERTY.
I HAVE A COUPLE OF HARD COPIES AND THERE'S ALSO A POWERPOINT IF SOMEBODY CAN PUT THAT UP.
>> WE'RE WORKING ON THE POWERPOINT.
>> PERFECT. MAYBE I'LL WALK OVER AND HAND YOU SOME HARD COPIED.
>> YOU GOT IT. THE BIG SHEET IS THE FIRST FLOOR AND THEN THE SMALLER SHEETS OF THE TOP TWO FLOORS.
THAT'S ONE PACKAGE AND THAT'S ANOTHER.
A LIMITED AMOUNT OF MOLD TESTING WAS DONE BY A CITY VENDOR IN EARLY AUGUST.
FOUR ROOMS WERE IDENTIFIED, TWO CHILDCARE AREAS ON THE GROUND FLOOR AND TWO SLEEPING ROOMS ON THE SECOND FLOOR, AND THOSE ARE REPRESENTED BY RED DOTS.
ONCE MOLD REMEDIATION WORK WAS UNDERWAY, THE CREW INFORMED US THAT THE MOLD WAS "MUCH WORSE THAN EXPECTED," AND CAUTIONED US TO EXPLORE THE ROOMS ABOVE THE CHILDCARE AREA WHERE THE MOST EXTENSIVE MOLD WAS FOUND.
WHEN I REPORTED THIS TO CITY STAFF, THE RESPONSE WAS, THE VENDORS MOLD REMEDIATION CREW DOES NOT HAVE THE AUTHORITY TO SPEAK ON BEHALF OF THE VENDOR.
BECAUSE WE COULD NOT GAIN CLARITY ON THE CITY'S INTENTIONS TO DO ADDITIONAL MORE COMPREHENSIVE MOLD TESTING, FOLLOWING THE MOLD CREWS COMMENTS, AS WELL AS THE EMERGENCE OF ADDITIONAL MOLD AFTER THE CITY'S TESTING WAS DONE, OUR BOARD ASKED US TO JUST DO IT IN EARLY SEPTEMBER.
WE CALLED IN OUR OWN TESTING COMPANY AND CONFIRMED FOUR ADDITIONAL AREAS WHERE HIGH LEVELS OF MOLD ARE PRESENT.
OUR SECURITY OFFICE, TWO STAFF OFFICES, AND THE CHILDCARE WING AND A SLEEPING ROOM ABOVE THE CHILDCARE AREA WHERE THE MOLD CREW HAD SPECIFICALLY POINTED.
THESE ARE ALSO REFLECTED BY RED DOTS.
BUT WE PUT AN ASTERISK ON THOSE SO THAT YOU CAN DISTINGUISH BETWEEN WHAT IS THE NEWLY FOUND MOLD AND THE ONES THAT WERE
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ALREADY IDENTIFIED AND HAVE ALREADY BEEN REMEDIATED.I CONFIRM WITH CITY STAFF THAT THEY HAD NOT TESTED THOSE ROOMS PREVIOUSLY.
THE MOLD TESTING RESULTS WERE PROVIDED TO CITY STAFF ON SEPTEMBER THE 4TH, AND THE RESPONSE WAS, "WE CAN'T REIMBURSE YOU FOR THAT." I DID NOT RESPOND AT ALL WELL TO THAT, AND I WILL ADMIT TO NOT RESPONDING WELL ON OTHER OCCASIONS THROUGH THIS EXPERIENCE TO WHICH CITY STAFF WILL ATTEST.
I WAS LATER TOLD THAT THE REPORT WOULD BE SHARED INTERNALLY.
IN SUBSEQUENT WEEKS, I HAVE ASKED IF THE CITY INTENDS TO ACT ON THIS NEW INFORMATION AND THE RESPONSE WAS INITIALLY SILENCE, AND THEN WE ARE REMEDIATING FOR MOLD AFFECTED ROOMS. I LEARNED THAT THE INSURANCE ADJUSTER SUBMITTED HIS REPORT TO CITY STAFF WHEN I READ THE MEMO FOR THIS MEETING AND REQUESTED A COPY, WHICH I RECEIVED LATE LAST WEEK.
MARKED WITH GREEN DOTS ARE WATER DAMAGED ROOMS THAT THE ADJUSTER CATEGORIZED AS FULLY RELATED TO THE STORM.
MARKED WITH BLUE DOTS ARE ROOMS THAT HAVE BOTH STORM RELATED DAMAGE AND SOME OTHER REPAIRS THAT COULD BE ATTRIBUTED TO ANOTHER CAUSE.
WE HAD A MEETING WITH CITY STAFF AND THE ADJUSTERS COST ASSESSMENT TEAM ON FRIDAY AND ASKED SOME QUESTIONS ABOUT THAT.
THE ADJUSTERS TEAM AGREED TO REFINE THEIR REPORT AND TO PROVIDE CLARITY ON THE ROOMS MARKED IN THOSE BLUE DOTS AS NOT 100% SO THAT BOTH THE CITY AND FAMILY GATEWAY KNOW WHICH IS WHICH AND WHO WILL BE RESPONSIBLE FOR THOSE REPAIRS.
I REMINDED THEM THAT WE JUST COMPLETED A $3 MILLION RENOVATION OF THE ENTIRE GROUND FLOOR AT THE END OF 2023, SO THAT IF ANY OF THEIR NOT RELATED TO THE STORM FINDINGS WERE CONSIDERED NORMAL WEAR AND TEAR, THAT OUR BEGINNING STATE WAS ESSENTIALLY BRAND NEW AT THE END OF LAST YEAR.
I THEN ASKED ABOUT WHAT TO DO WITH THE NEW INFORMATION THAT CAME AFTER THE ADJUSTER'S VISIT, SPECIFICALLY THAT WE NOW KNOW THERE ARE FOUR ADDITIONAL ROOMS THAT NEED MOLD REMEDIATION.
THE ADJUSTERS TEAM'S RESPONSE WAS, "YES.
WE WANT TO KNOW THAT INFORMATION AND YES, WE WILL LOOK AT THE REPORT AND COME BACK OUT IF NEEDED TO MAKE ADJUSTMENTS." CITY STAFF THEN ASKED ME TO CLARIFY MY EXPECTATIONS ABOUT THE EXTENT OF REMEDIATION THEY WOULD PROVIDE AND IF I EXPECTED THEM TO TEAR OUT DRYWALL, FOR INSTANCE.
I NOTED THAT MY EXPECTATION WAS THAT THEY REMEDIATE THE MOLD FULLY TO WHATEVER EXTENT NEEDED SO THAT WE CAN APPROPRIATELY DEMONSTRATE THAT THE AREAS ARE SAFE FOR OUR TEAM, OUR FAMILIES, AND OUR CHILDREN TO BE IN.
I SHOULD HAVE ALSO ADDED THAT MY EXPECTATION IS THAT RETESTING WILL BE DONE TO CONFIRM THAT THE REMEDIATION IS COMPLETE AND THAT WE HAVE THAT REPORT SO THAT WE CAN REOPEN OUR CHILDCARE CENTER.
WHILE WE'VE HAD MANY POSITIVE ENCOUNTERS, I HAVE ALSO REFLECTED ON CITY STAFF RESPONSES THAT I HAVE FELT TO BE UNSATISFYING AND THAT APPEAR TO BE AIMED AT LIMITING WORK RATHER THAN DOING WHAT IS NEEDED.
I CONTINUE TO COME BACK TO THIS THOUGHT THAT PERHAPS THESE TEAMS NEED A MUCH CLEARER PATH FORWARD ON HOW TO PAY FOR OUT OF BUDGET URGENT NEEDS.
I DO THINK IT IS NOW TIME TO SHIFT.
WE HAVE THE ADJUSTER'S REPORT AND A PROMISE TO REVIEW AND RESPOND TO THE NEW MOLD FINDINGS AND TO CLARIFY WHAT IS AND IS NOT STORM RELATED SO THAT WE CAN DECIDE WHAT THE CITY IS PAYING FOR AND WHAT WE'RE PAYING FOR, AND THAT WILL BE VERY CLARIFYING FOR US.
THESE ARE ALL VERY POSITIVE STEPS.
I HAVE TWO REQUESTS OF CITY COUNCIL.
FIRST, PLEASE ASK THE INTERIM CITY MANAGER TO DIRECT AND EMPOWER THESE TEAMS TO DO ALL NECESSARY WORK THAT CAN BE ATTRIBUTED TO THE END OF THE MAY STORM AND TO AS PROMPTLY AS POSSIBLE, RETURN OUR FACILITY TO ITS PRE-STORM STATE.
SECONDLY, PLEASE ASSURE HER AND THESE TEAMS THAT CITY COUNCIL WILL SUPPORT A SOLUTION FOR PAYING FOR EXPENSES THAT ARE RELEVANT, EVEN IF NOT FULLY COVERED BY INSURANCE INCLUSIVE OF REIMBURSING OUR AGENCY FOR EXPENSES WE HAVE INCURRED AND WILL CONTINUE TO INCUR UNTIL THIS PROJECT IS COMPLETED. THANK YOU.
>> CHAIR MENDELSOHN, TAKE IT AWAY.
>> WELL, THANK YOU. ELLEN, FAMILY GATEWAY, I JUST WANT TO SAY THAT DISTRICT 12 LOVES HAVING YOU IN THE DISTRICT.
YOU'VE GAINED ENORMOUS SUPPORT IN THE WAY YOU CONDUCT BUSINESS, AND I THINK YOU'VE SHOWN IT JUST IN YOUR COMMENTS TODAY. YOU'RE VERY FORTHRIGHT.
YOU DO WHAT YOU SAY YOU'RE GOING TO DO, AND YOU DO IT WITH EXCELLENCE.
I'M JUST GOING TO SAY THIS ENTIRE EPISODE IS SHAMEFUL AND DISAPPOINTING.
IT'S MY EXPECTATION THAT THE CITY WILL FULLY FUND THE REMEDIATION OF THE BUILDING, AND YOU SHOULD PAY NOTHING, AND THAT YOU AND THE HOMELESS CLIENTS, FAMILY GATEWAY DESERVE AN APOLOGY.
IT'S JUST AS SIMPLE AS THAT. THANK YOU.
>> WE WANT TO PAY WHAT'S OUR RESPONSIBILITY.
WE DON'T WANT TO INFRINGE ON WHAT'S NOT RIGHT.
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>> I'M ALSO GOING TO SEE IF MR. GIPSON, YOU'RE WELCOME TO RESPOND OR IF YOU'RE JUST THERE FOR QUESTIONS, YOU CAN AS WELL.
I'M GOING TO ASK MY OTHER COLLEAGUES FOR COMMENTS AND QUESTIONS AS WELL, BUT I DIDN'T WANT TO SKIP OVER YOU IF YOU WANTED TO SAY SOMETHING.
>> CHAIR, THANK YOU VERY MUCH.
DONZELL GIPSON, INTERIM ASSISTANT CITY MANAGER, CITY MANAGER'S OFFICE.
I HEARD MS. ELLEN AND HER DEPICTION OF THE STORY IS ACCURATE.
WE WEREN'T RESPONSIVE ENOUGH AT THE FRONT END.
I WOULD TELL YOU THOUGH FROM THE MIDDLE TO WHERE WE ARE TODAY, WE HAVE BEEN.
THERE ARE LESSONS LEARNED HERE.
THERE ARE SOME OF THOSE LESSONS LEARNED THAT ARE ACTUALLY GOING TO BE BRIEFED IN THE NEXT BRIEFING THAT JOHN JOHNSON IS GOING TO LAY OUT THAT ALLOW US TO OPERATE AT THE SPEED OF BUSINESS.
HOPEFULLY, WE'LL DO A BETTER JOB OF CONTRACT MANAGEMENT, WHICH IS WHAT I BELIEVE ELLEN MENTIONED AS WELL, SO THERE'S A VERY STREAMLINED RESPONSE BACK TO ANY ISSUE, WHETHER IT'S AN EMERGENCY OR NOT.
I THINK SHE'S GOT SOME REALLY GOOD POINTS ABOUT FUNDS ALREADY BEING IN PLACE TO TAKE CARE OF FACILITIES THAT ARE UNIQUE LIKE THE GATEWAY SHELTER FACILITY, I SHOULD SAY.
I THINK WE'RE GOING BACK TO THE DRAWING BOARD AND WE'RE DOING A REVISIT TO OUR WHAT I WOULD CALL OUR MORE UNIQUE SITUATIONS, WHERE WE HAVE AN ACTUAL TENANT THAT'S IN A CITY FACILITY THAT REQUIRES TO BE FRANK WITH YOU A HIGHER LEVEL OF SERVICE THAN WHAT WE MIGHT DO OTHERWISE, AND A HIGHER LEVEL OF RESPONSIVENESS THAN WHAT WE MIGHT OTHERWISE DO.
BECAUSE THAT HADN'T BEEN THE CULTURE HERE.
ONE OF THE THINGS THE INTERIM CITY MANAGERS CHALLENGED ME WITH IS CHANGING THAT WAY OF LOOKING AT HOW WE DO BUSINESS, AND THIS IS ONE OF THOSE.
THIS WAS NOT OUR FINEST MOMENT.
MS. MENDELSON USED THE TERM SHAMEFUL.
I CAN ASSURE YOU THAT STAFF SPENT MANY HOURS LOOKING INTO THIS AND WE'RE NOT VERY HAPPY WITH THE RESPONSE EITHER.
WE KNOW THE SERVICES THAT ARE BEING PROVIDED, WE HAVE A REALLY GREAT PARTNER HERE, AND THINGS WEREN'T DONE WELL AND PEOPLE HAVE BEEN IMPACTED, THE RESIDENTS AND KIDS.
THERE'S NOBODY THAT WORKS HERE THAT'S BEEN SATISFIED WITH WHAT'S HAPPENED.
WE'VE ALL WORKED FEVERISHLY IN LATE HOURS TO TRY TO WRITE THE SHIP.
IN AN ESSENCE OF ON AN APOLOGY, I WOULD HOPE THAT OUR FIRST EFFORT AT WRITING THE SHIP, AT LEAST THESE LAST FEW WEEKS HAS SHOWN THAT EFFORT.
IF THERE'S ANYTHING PERSONALLY, BECAUSE WE'VE HAD A FEW CONVERSATIONS, MOSTLY EMAIL EXCHANGES, I THINK THE CITY IS IN ITS OWN WAY GLOBALLY SAYING THAT WE APOLOGIZE AND WE'RE GOING TO FIX THE MOVE FORWARD, AND WE'RE HERE FOR QUESTIONS.
ANY OF MY COLLEAGUES ONLINE AT THIS POINT WANT TO SAY ANYTHING? NO. I'LL JUST SAY THEN THAT I 100% AGREE WITH MY COLLEAGUE.
IT'S ALL HANDS ON DECK MOVING FORWARD TO MAKE SURE YOU AND YOUR RESIDENTS, THE CHILDREN, AND THE ADULTS HAVE WHAT THEY NEED TO FEEL SAFE AND COMFORTABLE.
THEY DESERVE TO HAVE A MOLD FREE AT A MINIMUM OF SPACE, A NICE SPACE, THEY CAN CALL HOME FOR AS LONG AS THEY NEED IT.
IT'S OUR DUTY TO MAKE SURE THAT THERE'S NO ENVIRONMENTAL ISSUES, THERE'S NO SAFETY ISSUES, THE ROOF IS PROPER, AND THAT'S BASELINE.
I DON'T WANT TO BE IN A SITUATION HERE WHERE WE'RE HAVING TO GO TO STAFF TO ASK FOR YOU GUYS TO MOVE FASTER.
THIS SHOULD BE SPRINT PACE, GET IT DONE, GET IT DONE PROPERLY.
MOVING FORWARD, I THINK BOTH OF ELLEN'S ASKS, I APPRECIATE YOU BEING VERY SPECIFIC ABOUT WHAT YOUR ASKS ARE FOR BEING HERE.
I ALSO APPRECIATE YOUR COURAGE IN COMING UP HERE.
A LOT OF OUR NONPROFITS, NOT NECESSARILY DEALING WITH REAL ESTATE, BUT HAVE COME TO ME ON DIFFERENT TIMES AND SAID, I'VE HAD THIS SITUATION WITH THE CITY.
I DON'T WANT TO BE PUBLIC ABOUT IT I DON'T WANT TO HURT MY RELATIONSHIP OR UPSET ANYONE, AND I'M LIKE, WE NEED TO HEAR IT, AND I APPRECIATE YOU BEING COURAGEOUS BEING UP HERE TODAY BECAUSE IT GIVES US THE PATHWAY FORWARD AND MAKING SURE THIS DOESN'T HAPPEN AGAIN TO SOMEONE ELSE.
THAT LEADS ME TO MY LAST POINT, WHICH IS THAT WE ABSOLUTELY NEED A REAL ESTATE STRATEGIC PLAN AND THAT MEANS ACTIVATION OF REAL ESTATE, BUT ALSO MANAGEMENT OF REAL ESTATE, AND HOW WE'RE GOING TO MAKE SURE THIS DOESN'T HAPPEN AGAIN MOVING FORWARD FOR ANY OF OUR TENANTS, WHETHER THEY NEED A LITTLE BIT MORE HANDS ON LIKE FAMILY GATEWAY OR WHETHER IT'S JUST A TENANT WHO PAYS RENT AND WE NEVER DEAL WITH THEM OTHER THAN THAT.
WE NEED A PLAN FOR ALL OF THEM, AND THAT SHOULD COME FROM THE CITY MANAGER AND SHOULD REST IN YOUR HANDS.
>> CHAIR, I COULDN'T AGREE MORE.
I BELIEVE THE NEXT BRIEFING THAT'S GOING TO BE PRESENTED BY JOHN JOHNSON, WILL SHED SOME LIGHT ON THE NEXT STEPS THAT STAFF IS GOING TO BE WORKING THROUGH AND SOME WORK THAT'S ALREADY BEEN DONE.
THERE'S BEEN A SERIES OF LESSONS LEARNED ALONG THE WAY.
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SOME OF THEM MORE PAINFUL THAN OTHERS.AGAIN, MY APOLOGIES TO MS. ELLEN AND HER TEAM FOR WHAT WHAT THEY'VE HAD TO ENDURE.
BUT HOPEFULLY, ON OUR END, AND YOU GUYS HOLDING US ACCOUNTABLE AND RESPONSIBLE, WE'LL CONTINUOUSLY BE BRINGING BACK REMEDIES THAT PUT US IN A POSITION FOR THIS TO BE LIMITED, IF NOT ELIMINATED.
>> WELL, THANK YOU. IF YOU NOTICE, THIS IS ACTUALLY SET AS A MONTHLY UPDATE ON THE REPAIRS.
SO ELLEN, YOU DON'T NEED TO COME UP EVERY MONTH UNLESS YOU FEEL LIKE YOU NEED TO, BUT I WANT TO KEEP THIS AS OUR HOT ISSUE ALONG WITH REAL ESTATE, AND I KNOW YOU'RE NEW TO THIS ROLE.
[LAUGHTER] YOU ARE THE FACE UP THERE NOW AND WE APPRECIATE HAVING YOU UP THERE WITH US.
>> I HAVE A HAIRCUT OVER THE WEEKEND.
WANT TO BE THE RIGHT [INAUDIBLE]. [LAUGHTER]
>> NEXT, WE WILL MOVE ON TO ITEM B.
THIS IS THE MONTHLY REVIEW OF THE CITY'S REAL ESTATE FOR DEVELOPMENT AND REDEVELOPMENT.
THE TITLES CHANGE, BUT THE CONCEPT IS THE SAME.
WE ARE TALKING ABOUT THE CITY'S REAL ESTATE BOOK OF BUSINESS.
LOOKS LIKE WE HAVE SOME SPECIFIC PROPERTIES IN HERE WE'RE GOING TO TALK ABOUT TODAY.
I'M WELCOMING JOHN JOHNSON. COME ON DOWN.
>> GOOD AFTERNOON. JOHN JOHNSON WITH FACILITIES REAL ESTATE MANAGEMENT.
TODAY, WE'RE HERE TO TALK ABOUT OUR REAL ESTATE REALIGNMENT AND PROPERTY MANAGEMENT STRATEGIES, SO WE'RE JUST GOING TO HOP RIGHT IN.
I ALSO WANT TO INTRODUCE MS. ASHLEY EUBANKS, THE ASSISTANT DIRECTOR WHO OVERSEES OUR REAL ESTATE OPERATIONS FOR THE CITY.
ON SLIDE 2 ON THE PRESENTATION OVERVIEW, YOU CAN SEE WHAT WE HAVE OUTLINED FOR YOU TODAY, SO WE'LL MOVE RIGHT OVER TO SLIDE 3 WITH THE PURPOSE.
NOTING TODAY'S MAIN PURPOSE OF ACKNOWLEDGING RECENT CONCERNS ABOUT THE MANAGEMENT OF CITY ASSETS AND EMPHASIZING OUR COMMITMENT TO RESPONSIBLE AND THOUGHTFUL STEWARDSHIP OF THE STATED ASSETS.
MOVING ON OVER NOW, WE'RE GOING TO START WITH SOME BACKGROUND AND HISTORY ON REAL ESTATE FOR THE CITY, HIGHLIGHTING THAT REAL ESTATE IS AUTHORIZED BY CITY CODE AND GOVERNED BY STATE LAW.
REAL ESTATE PROCESSES AN AVERAGE OF AROUND 700 TRANSACTIONS ANNUALLY, AND THEY RESULTED IN ALMOST $16 MILLION IN REVENUE TO THE CITY IN FISCAL YEAR '23.
THE CITY HAS APPROXIMATELY 5,800 REAL ASSETS.
REVENUE IS GENERATED THROUGH MULTIPLE OPERATIONS, TRADITIONAL TRANSACTIONS LIKE ABANDONMENTS, LEASES, AND SURPLUS SALES, AND THEN THERE ARE OTHER NON-TRADITIONAL THINGS WHICH ARE SHOWN ON THE NEXT SLIDE.
AS I MENTIONED, SOME THINGS THAT DON'T ALWAYS COME TO MIND WITH REAL ESTATE AND THAT'S SIDEWALK CAFE LICENSING, SKY BRIDGE LICENSES AND SIGNAGE IN THE RIGHT OF WAY, WHICH ALL SUPPORT VARIOUS CITY FUNCTIONS.
MOVING ON NEXT TO SLIDE 9, WE'RE GOING TO LOOK AT SOME SUBJECT PROPERTIES AS CASE STUDIES, AND WE'LL START WITH 711 SOUTH ST. PAUL.
THIS WAS THE SITE OF THE FORMER FAMILY GATEWAY SHELTER BEFORE THE OPERATOR CANCELED THEIR CONTRACT, AND THIS PROPERTY HELPED US IDENTIFY AREAS OF OPPORTUNITIES RELATED TO TENANT RESPONSIBILITIES WHEN VACATING, RESPONSIBILITY AND FUNDING FOR VACANT PROPERTY MANAGEMENT, AND THEN LIMITED RESOURCES FOR THE DEVELOPMENT OF RFPS.
THE NEXT STEPS FOR THIS PARTICULAR PROPERTY WAS THAT IT WAS DESIGNATED AS SURPLUS AND IS CURRENTLY UNDER ADVERTISEMENT FOR DIVESTITURE.
WE'LL SHIFT OVER NOW TO SLIDE 11, WHICH IS 7,800 STEMMON'S, AND WE ALL KNOW THAT THIS WAS PLANNED AS THE NEW LOCATION FOR DEVELOPMENT SERVICES.
THIS PROPERTY WAS ACQUIRED WITH PRIVATE TENANTS OCCUPYING THE SPACE.
IT ELEVATED OPPORTUNITIES FOR IMPROVEMENT RELATED TO ASSET FEASIBILITY, AND THAT IS THE INTENDED USE OR PURPOSE VERSUS THE PHYSICAL LIMITATIONS OF THE ASSET, NEED FOR COMPREHENSIVE DUE DILIGENCE PRE-PURCHASE, AND THE ADEQUATE ALLOCATION OF RESOURCES, ESPECIALLY FOR ASSETS WITH PRIVATE TENANTS AND THE ISSUANCE OF A CO. FOR 7,800 STEMMONS, THE NEXT STEPS ARE STILL IN PROCESS, AND THERE HAVE BEEN RECENT EXECUTIVE SESSIONS TO THE CITY COUNCIL ON THIS PARTICULAR ASSET.
STARTING BACK ON SLIDE 13, WE'LL LOOK AT 2929 SOUTH HAMPTON.
THIS PROPERTY WAS ACQUIRED WITH 2017 BOND FUNDS AND WAS PLANNED AS SUPPORTIVE HOUSING.
IT ELEVATED AREAS OF OPPORTUNITY FOR THE CITY IN ALLOCATING NECESSARY FUNDS FOR REQUIRED RENOVATION AND FOR ONGOING MAINTENANCE AND FOR EFFECTIVE COMMUNITY ENGAGEMENT.
THE NEXT STEPS FOR 2929 HAMPTON ARE STILL BEING DETERMINED BY THE HOUSING AND HOMELESSNESS COMMITTEE MOVING NOW TO A DIFFERENT CASE STUDY, WHICH IS 4150 INDEPENDENCE.
THIS PROPERTY WAS ACQUIRED ALSO WITH 2017 BOND FUNDS FOR SUPPORTIVE HOUSING.
IT ELEVATED CHALLENGES WITH TRANSITIONING GUESTS TO
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A NEW HOME AFTER RELOCATION ASSISTANCE WAS PROVIDED, IDENTIFYING THE MOST EFFECTIVE METHOD TO SOLICIT DEVELOPMENT SERVICES.AGAIN, THE NEED TO IDENTIFY ADEQUATE FUNDS FOR RENOVATION AND ONGOING MAINTENANCE.
PARTICULARLY FOR 4150 INDEPENDENCE, ANOFA WAS ISSUED JULY 8 AND CLOSE SEPTEMBER 13, AND I BELIEVE I HEARD EARLIER THAT NO RESPONSES WERE RECEIVED AND IT WILL BE REPOSTED TO SOLICIT ADDITIONAL INPUT FROM STAKEHOLDERS.
MOVING TO OUR LAST CASE STUDY, WHICH WAS 9999 WEST TECHNOLOGY BOULEVARD.
THIS ASSET WAS PURCHASED BY AND IS OWNED BY THE CITY'S PUBLIC FINANCE CORPORATION AND IS PLANNED AS A MULTIFAMILY COMPLEX.
PER THE TERMS OF THE AGREEMENT, THE DEVELOPER WAS AND IS RESPONSIBLE FOR ALL MAINTENANCE AND UPKEEP OF THIS PARTICULAR ASSET.
THIS CASE STUDY HIGHLIGHTED GAPS AND ACQUISITIONS THAT TAKE PLACE OUTSIDE OF THE CITY'S REAL ESTATE DIVISION AND THE ENFORCEMENT AND MAINTENANCE STANDARDS AND TIMELINES FOR DEMOLITION AND FINAL DEVELOPMENT FOR PFC OR QUASI GOVERNMENT OWNED ASSETS.
I AM PLEASED TO REPORT THAT DEMOLITION IS 50% UNDERWAY AS OF FRIDAY FOR THIS PARTICULAR LOCATION, AND THE CONTRACTOR IS PROJECTING TO BE AT 80% COMPLETED BY THE END OF SEPTEMBER.
NOW WE'LL SHIFT OVER TO SLIDE 20 AND USING THE DATA FROM OUR CASE STUDIES AND INPUT FROM VARIOUS STAKEHOLDERS.
MANY OF THE CHALLENGES THAT WE'VE OBSERVED CAN BE SUMMARIZED INTO VARIOUS CATEGORIES, AND THOSE ARE INADEQUATE COMMUNICATION, SILOED ACQUISITIONS, UNFUNDED OPERATIONS, PERFORMING ADEQUATE DUE DILIGENCE, AND THEN CONTINUING WITH LIMITED AWARENESS OF ACQUISITIONS THAT TAKE PLACE OUTSIDE OF THE CITY'S REAL ESTATE DIVISION, UNREGULATED TIMELINES, AND THEN LIMITED RESOURCES.
NOW THAT WE'VE TOLD YOU THE BACKGROUND AND THE CHALLENGES, WE ALSO WANT TO MAKE THE BUSINESS CASE FOR THE ALIGNMENT OR THE WHY, AND WHICH IS BETTER STEWARDSHIP OF ASSETS, SURPLUS DESIGNATIONS WHEN APPROPRIATE THAT WILL GENERATE REVENUE, THE DEVELOPMENT OF UNDERUTILIZED ASSETS TO SUPPORT ECONOMIC GROWTH, AND WE CONTINUE ON TO 24 BY MONETIZING ASSETS TO BUILD THE TAX BASE, WHICH ALSO GENERATES REVENUE, BY PRIORITIZING INVESTMENTS THAT MAKE THE BEST USE OF THE CITY'S LIMITED RESOURCES, AND COMBINING REAL ESTATE WITH FACILITIES NOW ALLOWS THE CITY TO BETTER LEVERAGE ITS INTERNAL AND EXTERNAL RESOURCES.
AS A PART OF THESE RE-IMAGINED REALIGNMENTS, THERE ARE SOME PROCESS APPROVEMENTS THAT ARE DETAILED ON SLIDE 26.
THESE ARE DESIGNED TO HELP ADDRESS THE CHALLENGES AND ACCOMPLISH THE GOALS OF THE REALIGNMENT.
WE'LL GO INTO EACH OF THESE INTO MORE DETAIL ON THE FOLLOWING SLIDES.
NUMBER 1 WAS THE REALIGNMENT OF REAL ESTATE TO BUILDING SERVICES.
THE CITY COUNCIL RECENTLY APPROVED THIS REALIGNMENT AND MOVING REAL ESTATE TO BUILDING SERVICES, AND THEN IT WAS RENAMED TO FACILITIES AND REAL ESTATE MANAGEMENT.
NUMBER 2 WAS TO PROVIDE INTERIM GUIDANCE TO ALL CITY DEPARTMENTS, WHICH IS IN PROCESS.
THIS DIRECTIVE FROM THE CITY MANAGER'S OFFICE INCLUDES CLARIFICATIONS ON RESPONSIBILITIES AND SET STANDARDS FOR THE MAINTENANCE OF VACANT STRUCTURES.
AS I MENTIONED, THIS IS UNDERWAY, AND A KICKOFF MEETING WAS HELD SEPTEMBER 6TH WITH AN ADDITIONAL MEETING FOR DIRECTORS ON SEPTEMBER 19TH.
THE NEXT PROCESS IMPROVEMENT IS TO WORK TO REVISE ADMINISTRATIVE DIRECTIVE 6-17.
THAT AD GOVERNS THE LBMS SYSTEM AND THE CITY'S ANNUAL PROPERTY REVIEW PROCESS.
IN ADDITION TO REVISING AD 6-17, STAFF WILL ALSO BE WORKING TO DEVELOP A NEW ADMINISTRATIVE DIRECTIVE OR DIRECTIVES THAT WILL PROVIDE RESOURCES AND FILL IN SOME OF THE GAPS RELATED TO ASSET MANAGEMENT.
THE NEW PUBLICATION IS PLANNED TO INCLUDE DIRECTIONS ON ACQUISITIONS, REQUIRED APPROVALS AND DUE DILIGENCE, FINANCIAL COMPLIANCE AND VACANT PROPERTY MAINTENANCE STANDARDS TO NAME A FEW.
THIS NEW AD, ALONG WITH THE REVISIONS TO 6-17, ARE PLANNED FOR COMPLETION IN THE SPRING OF 2025.
IMPROVEMENT NUMBER 5 IS A NEW PILOT PROGRAM, WHICH WILL LEVERAGE PRIVATE INDUSTRY TO HELP MAINTAIN VACANT ASSETS AND ASSETS WITH PRIVATE TENANTS THAT ARE PAYING MARKET RENT.
THE RECENTLY APPROVED ANNUAL BUDGET INCLUDES ADDITIONAL FUNDING FOR THIS PILOT PROGRAM, AND STAFF IS EXPLORING OPTIONS TO UTILIZE A COOP TO PROCURE A SHORT TERM CONTRACT WHILE A LARGER SOLICITATION IS DEVELOPED TO IMPLEMENT A LONG TERM COMPREHENSIVE SOLUTION.
MOVING ON TO PROCESS IMPROVEMENT NUMBER SIX, AND THAT IS PLANNED TO HELP WITH THE EFFICIENCY OF ADMINISTRATIVE CONVEYANCES.
THAT WOULD BE WITH THE REVISIONS OF CHAPTER 2 TO CITY CODE.
UPDATING AND ALIGNING THIS PORTION OF CODE TO MATCH THE CITY'S CURRENT CONTRACTING POLICIES WILL HELP DECREASE PROCESSING TIMES FOR ADMINISTRATIVE ACQUISITIONS,
[00:30:03]
AND THIS IS EXPECTED FOR COUNCIL CONSIDERATION IN OCTOBER.LASTLY, THE INITIATIVES LISTED ON THIS PAGE WILL REQUIRE ADDITIONAL RESEARCH AND FUTURE INVESTMENT.
THOSE COULD INCLUDE A STRATEGIC REAL ESTATE MASTER PLAN, DEPLOYING A NEW OR MODERN AND USER FRIENDLY ASSET DATABASE, AND AUTOMATING THE ANNUAL REVIEW AND REDUCED PAPER BASED PROCESSES IN USE TODAY.
BRINGING US TO THE END OF OUR PRESENTATION WITH OUR NEXT STEPS, AND THOSE ARE, WE'D LIKE TO SOLICIT COUNSEL'S FEEDBACK ON THE PROPOSED STRATEGY.
CONTINUE WITH REGULAR UPDATES TO GPFM, COMPILE AND PROCURE OPTIONS FOR THE THIRD PARTY PROPERTY MANAGEMENT SERVICES PILOT.
BEGIN COLLABORATION ON THE ADMINISTRATIVE DIRECTIVES REVISIONS AND DEVELOPMENT, AND THEN LASTLY, PRESENT CODE REVISIONS TO CITY COUNCIL FOR FUTURE CONSIDERATION.
>> THANK YOU. AND I'LL JUST BRIEFLY SAY A COUPLE OF WORDS AND I'M GOING TO PASS ON TO MY COLLEAGUES.
I DO ALSO APPRECIATE YOU COMING UP WITH THIS SORT OF PROCEDURAL ADMINISTRATIVE PLAN.
I DON'T WANT YOU TO NOT DO IT.
I SUPPORT IT, BUT I THINK WHAT SHOULD HAVE COME FIRST IS THE STRATEGIC PLAN ON HOW WE'RE GOING TO MANAGE OUR REAL ESTATE AND WHAT OUR ACTUAL OVERARCHING GOALS ARE.
I THINK WE'RE DOING THE ADMINISTRATIVE PLAN FIRST.
BUT I DON'T WANT TO HOLD IT UP BECAUSE I THINK WE NEED THIS.
I REMEMBER I WAS JUST TELLING A VICE CHAIR HERE, THE ONE TIME I GOT A CALL FROM FORMER MAYOR STEVE BARTLETT WAS WHEN HE WAS TALKING ABOUT THE CITY'S REAL ESTATE ASSETS, AND HE HAD TOLD THE CITY MANAGER AT THAT TIME WHEN HE WAS THE MAYOR THAT HE WOULD NOT SET AN AGENDA MEETING UNLESS THE REAL ESTATE DEPARTMENT HAD AT LEAST FIVE PROPERTIES THEY WERE SELLING ON EACH AGENDA IF THEY DIDN'T, WE WEREN'T GOING TO HOLD AGENDA.
I SEE THAT WE HAVE 5,800 REAL ESTATE ASSETS IN THE CITY.
I CAN SEE WHY HE WOULD DO THAT.
IT ALSO GIVES ME HOPE, I GUESS, IN SOME SENSE, THAT WE HAVE ALL THESE FINANCIAL OBLIGATIONS IN THE CITY, AND WE HAVE ASSETS THAT WE CAN LEVERAGE TO DO THAT WITH.
NOW I KNOW SOME OF THIS FOR PARKS AND DWU EASEMENTS AND ALL KINDS OF THINGS, BUT THERE'S A LOT THAT WE'RE NOT DOING THAT WE SHOULD BE DOING AND I HOPE TO SEE THROUGH A STRATEGIC PLAN.
IT WAS MORE THAN A SHORT COMMENT. CHAIR MELES.
>> WELL, IN THE SAME LINE, YOU SEE THAT 5,800 REAL ASSETS.
MY FIRST QUESTION IS, DOES EACH ASSET HAVE A DEPARTMENT THAT OWNS IT? ARE THEY ALL ASSOCIATED WITH A SPECIFIC DEPARTMENT?
>> YES, MA'AM. TYPICALLY, THERE ARE ASSIGNED.
THERE ARE SOME THAT ARE UNDER FACILITIES THAT WE CONTROL OR WE MAINTAIN, BUT EACH ASSET IS ASSOCIATED WITH AN OPERATING OR OWNING DEPARTMENT.
>> OKAY. SO LET'S GO THROUGH WHO OWNED OR OPERATED THE FAMILY GATEWAY?
>> THAT'S ASSIGNED TO THE OFFICE OF HOMELESS SOLUTIONS.
>> SO YOU'VE GOT FIVE OTHER PROPERTIES THAT YOU WERE USING AS THE CASE STUDY.
CAN WE GO THROUGH THOSE FIVE AND YOU TELL US WHO WAS THE DEPARTMENT OWNER OF EACH?
>> YOU HAVE 711 SOUTH ST. PAUL?
>> STARTING WITH THE FIRST CASE STUDY, WHICH IS 711 SOUTH ST. PAUL, THAT WAS ASSIGNED TO FACILITIES IN REAL ESTATE MANAGEMENT BECAUSE IT HAD BEEN IN THE CITY'S PORTFOLIO FOR SO LONG.
WE MAINTAINED THAT ON BEHALF OF THE OFFICE OF HOMELESS SOLUTION, WHO HELD THE CONTRACT FOR THAT FACILITY.
7,800 STIMENS WAS NEVER OFFICIALLY TURNED OVER TO FACILITIES AND REAL ESTATE MANAGEMENT, AND ITS OWNER OPERATOR WOULD BE DEVELOPMENT SERVICES.
2929 SOUTHHAMPTON, I BELIEVE, ACTUALLY IS A OFFICE HOMELESS SOLUTIONS. THANK YOU.
4150 INDEPENDENCE, ALSO THE OFFICE OF HOMELESS SOLUTIONS.
THEN 9999 WEST TECHNOLOGY BOULEVARD IS THE OFFICE OF HOUSING OR DEPARTMENT OF HOUSING, EXCUSE ME.
>> SO I'M GOING TO SUGGEST TO YOU THAT AS YOU LOOK AT A STRATEGIC PLAN, YOU MIGHT REALIZE THAT PROPERTY MANAGEMENT, PROPERTY DECISION MAKING MIGHT NOT BELONG WITH EVERY DEPARTMENT.
THAT THAT MIGHT NOT BE THE SKILL SET THAT IS HELD BY THAT STAFF.
>> ABSOLUTELY. ONE OF THE PROCESS IMPROVEMENTS THAT I DIDN'T SPEAK TO VERBALLY, BUT IS IN THE PRESENTATION IS THE CREATION OF THE FACILITIES AND LAND GOVERNANCE TASKFORCE, WHICH NOW REPORTS DIRECTLY TO THE CITY MANAGER'S OFFICE, AND I THINK WE WILL HELP TO ADDRESS SOME OF THE ISSUES THAT YOU HAVE MENTIONED THAT THE DECISIONS THAT ARE BEING MADE ARE BEING MADE BY THE RIGHT PEOPLE AND THAT THOSE THAT CAN AFFECT CHANGE WHEN IT COMES TO ADDITIONAL RESOURCES OR FUNDS.
>> I JUST WANT TO SAY, OVERALL, I DO THINK YOU'RE HEAD IN THE RIGHT DIRECTION, AND I'M NOT SURPRISED.
I THINK YOU'VE GOT A GREAT HEAD IN YOUR SHOULDERS.
I THINK YOU KNOW WHAT NEEDS TO BE DONE, BUT I SURE HOPE YOU GET THERE PRETTY QUICKLY BECAUSE THESE ISSUES JUST KEEP COMING UP.
[00:35:02]
YOU HAVE ON THERE, ONE OF THE ITEMS IS EVALUATING THE NEED TO RELOCATE TENANTS.I WOULD ASK YOU TO THINK ABOUT, ESPECIALLY WHEN WE DIDN'T EVEN HAVE FUNDING IN PLACE TO REMODEL THOSE ROOMS, BUT WE KICKED THEM OUT.
THEN SOME OF THEM LITERALLY BECAME HOMELESS.
WE COULD HAVE CONTINUED TO KEEP THEM THERE.
WE COULD HAVE ACTUALLY PUT A LOT OF PEOPLE THERE WHILE WE WERE WAITING TO SECURE THAT FUNDING.
I DON'T KNOW WHAT NEEDS TO HAPPEN IN WHAT CHECKLIST, BUT THAT SEEMS LIKE A BIG MESS FOR US.
FORE 999 TECHNOLOGY, CAN YOU TELL US, I MEAN, ASHLEY, I DON'T KNOW IF YOU KNOW THIS OFF THE TOP OF YOUR HEAD, BUT HOW MANY ACRES ARE PART OF THAT PIECE OF LAND? I FEEL LIKE IT WAS 25, BUT I COULD BE WRONG.
>> I AM UNSURE, BUT I CAN GET THAT INFORMATION TO YOU.
>> SO I RECALL THAT WE ALLOWED THE DEVELOPER TO REDUCE THE NUMBER OF UNITS THAT THEY WERE GOING TO BUILD ON THAT PROPERTY.
>> NO, MA'AM, I'M NOT, BUT I DON'T KNOW IF DARN OR SAM ARE AVAILABLE.
I THINK THEY WERE SUPPOSED TO BE ONLINE OR EITHER IN THE.
>> PERFECT. HE'S GOT YOUR BACK, LITERALLY.
>> DARN WADE, ASSISTANT HOUSING DIRECTOR.
SO THE QUESTION WAS ABOUT ACREAGE AND THE NUMBER OF UNITS.
THE NUMBER OF UNITS THAT ARE CURRENTLY COUNCIL HAS APPROVED IS ABOUT 425 UNITS, I BELIEVE.
>> SO I'M HOPING THAT AS YOU'RE CONSIDERING THIS, WHEN WE'RE ALLOWING HOUSING TO BE BUILT, WE'RE THINKING ABOUT HOUSING DENSITY.
SO HERE WE'RE ABOUT TO HAVE A BIG OLD FIGHT ABOUT HOUSING DENSITY THIS WEEK, PROBABLY.
BUT WHEN WE'RE EXEMPTING TAXES ON LAND ESSENTIALLY FOREVER, I DON'T UNDERSTAND WHY WE'RE NOT UTILIZING THIS LAND AS A PRECIOUS COMMODITY IT IS.
PROBABLY 425 UNITS COULD HAVE BEEN BUILT ON MAYBE HALF THAT SITE, AND EITHER WE COULD HAVE ADDED ANOTHER 400 UNITS OR WE COULD HAVE DONE SOMETHING ELSE WITH THAT OTHER PART OF THE LAND.
BUT I THINK THAT THAT NEEDS TO BE PART OF THE CONSIDERATION BECAUSE WE'RE NOT LOOKING AT THIS IN A HOLISTIC WAY.
THEN, CAN I JUST ASK YOU, DARN, DO YOU KNOW IF IT'S BEEN FULLY DEMOLISHED AND CLEARED AT THIS POINT?
>> NO. THE MOST RECENT UPDATE WAS ABOUT 80 TO 85% DEMOLISHED, I BELIEVE, AND THAT THEY'RE PLANNING TO BE FULLY COMPLETED BY THE END OF THE MONTH?
>> THE GOAL IS 80% BY THE END OF THE MONTH, 50% CURRENTLY.
>> SO THE LAST THING I HAVE TO SAY, YOU'RE PROBABLY NOT GOING TO LOVE, WHICH IS ABOUT THE SUMMARY OF THE OBSERVED CHALLENGES.
THERE'S COMMUNICATION PROBLEMS. THAT'S BENIGN ENOUGH.
BUT WHEN YOU START TALKING ABOUT THESE OTHER ITEMS ABOUT SILOED ACQUISITIONS, NO. IT'S NOT SILOED.
IT'S ALL UNDER THE CITY MANAGER.
PERIOD. NONE OF THESE HAVE HAPPENED WITHOUT THE CITY MANAGER.
THE CITY MANAGERS PUT THEM ON THE AGENDA.
CITY MANAGERS OFTENTIMES BRIEFED US, AND I'M SAYING THE CITY MANAGER'S OFFICE.
IF IT'S ON THE AGENDA, I'M ASSUMING THEY'RE RECOMMENDING IT.
THERE'S SOMEBODY WHO'S CONNECTED TO THIS.
AGAIN, THE CITY MANAGER IS FUNDING THESE OPERATIONS, AND IF THEY'RE NOT, THAT PERSON IS NOT DOING THEIR JOB.
THAT IS LITERALLY PART OF THEIR JOB.
DUE DILIGENCE, CITY COUNCIL DOESN'T DO THAT.
AGAIN, THE CITY MANAGER NEEDS TO MAKE SURE THAT THE DUE DILIGENCE IS DONE.
NOT BEING AWARE OF PFC PROPERTIES.
AGAIN, THE AGENDA IS CONTROLLED BY THE CITY MANAGER'S OFFICE.
THE STAFFING OF THE PFC COMES FROM THE HOUSING DEPARTMENT, WHO REPORTS TO THE CITY MANAGER.
UNREGULATED TIMELINES, AGAIN, NO.
ENSURING THAT OUR BUSINESS GETS DONE ON A PROPER SCHEDULE, THAT IS LITERALLY THE JOB OF OUR CITY MANAGER.
WE HAVE A $7,000,000,000 BUDGET.
IF THEY'RE NOT BEING ALLOCATED PROPERLY, I'M GOING TO GO BACK TO THAT IS OUR JOB OF THE CITY MANAGER.
SO THIS WHOLE THING IS ABOUT HOW OUR CITY IS BEING MANAGED, AND THE REAL ESTATE SECTION HAS NOT BEEN MANAGED PROPERLY.
[00:40:02]
I DON'T THINK IT'S THE FAULT OF SOMEBODY WHO'S LITERALLY DOING THE WORK IN REAL ESTATE.IT'S PART OF A BROADER PICTURE OF, WHY DO WE EVEN HAVE THIS MANY ASSETS? WHY HAVEN'T WE MONETIZE THE LAND THAT WE HAVE? WHY HAVEN'T WE BUILT THE HOUSING IN THE PLACES WE CAN, SOLD IT, SO THAT WE COULD PAY SOME OF OUR OTHER OBLIGATIONS AND MANAGED IT, LITERALLY MANAGED IT.
THAT'S WHY WE HIRE A PROFESSIONAL CITY MANAGER.
SO I'M DISAPPOINTED ABOUT THIS ENTIRE THING.
I'M NOT ASSIGNING BLAME TO ANYBODY, BUT THIS IS A MANAGEMENT PROBLEM, JUST PLAIN AND SIMPLE. THANK YOU.
THANK YOU. SO THANKS FOR PUTTING LOTS OF THOUGHT INTO THIS.
SO WHERE DO CLOSURES COME IN ON ALL THIS? BECAUSE IF WE SHUT DOWN A BUILDING, HOW DO WE SECURE IT TO ENSURE THAT IT'S NOT GOING TO BECOME THE NEXT ENCAMPMENT?
>> SO TYPICALLY, IF SOMETHING IS DECLARED SURPLUS OR IT NEEDS TO BE CLOSED, IF IT'S MANAGED BY FACILITIES IN REAL ESTATE, WE WOULD THEN ADDRESS IT BY PUTTING PLYWOOD, HASS, LOCKS, MAKING SURE THAT THE FACILITY WAS SECURED.
IF IT WAS GOING TO BE AN EXTENDED PERIOD OF TIME, WE WOULD MAKE SURE THAT ALL UTILITIES AND ANYTHING THAT WE COULD SHUT OFF WERE SHUT OFF.
WHERE IT DOES GET A LITTLE BIT MORE COMPLICATED IS IF IT'S A FACILITY THAT WE DO NOT MANAGE.
WE WOULD THEN WORK WITH THE DEPARTMENT, WHOEVER THE DEPARTMENT IS.
I'M JUST TRYING TO THINK OF ONE THAT MAY NOT HAVE CIVIL SERVICE, IF THEY HAD A BUILDING OR A FACILITY, THEY MAY NOT HAVE THE STAFFING OR THE EXPERTISE TO DO THAT.
SO WE WOULD ASSIST THEM WITH IT AS LONG AS THEY WOULD APPROVE IT AND PROVIDE THE FUNDING TO TAKE CARE OF THE STEPS THAT NEEDED.
>> SO IS THERE ANYWHERE IN THIS CONVERSATION HAS THAT LAID OUT.
BECAUSE I WOULD THINK THAT ANYTIME A CLOSURE HAPPENS, IT PROBABLY SHOULD COME TO THE SINGLE EXPERTS, WHICH WOULD BE YOUR GROUP TO SECURE IT, MANAGE IT AT THAT POINT.
IN OTHER WORDS, LIKE LIBRARIES.
THE LIBRARY IS NOT IN THE BUSINESS OF KEEPING A CLOSED LIBRARY FROM BECOMING AN ENCAMPMENT.
I THINK ANYTHING THAT GOES TO CLOSURE AND SOME OF THESE HAVE BEEN CLOSED, THAT IT SHOULD COME TO YOUR PORTFOLIO FOR ADMINISTERING TILL THE TIME IT LEAVES, TILL THE TIME IT LEAVES OUR BALANCE SHEET.
>> SURE. THE ADMINISTRATIVE DIRECTIVE THAT WE'LL BE CREATING CAN SPEAK TO A NUMBER OF THINGS, WHICH IT ALREADY HAS PLANS FOR THE MINIMUM MAINTENANCE STANDARDS FOR VACANT PROPERTIES AND ASSETS.
SO JUST INCLUDING THE ROUTING OR THE APPROVAL AND MAKING SURE THAT THE CORRECT INDIVIDUALS OR DEPARTMENTS ARE AWARE OF IT, IS CERTAINLY SOMETHING THAT WE CAN BUILD INTO THAT PROCESS.
>> BECAUSE I THINK THAT WOULD CAUSE THE CONFUSION TO BE LESS.
I JUST THINK IF YOU'VE GOT ALL THESE DIFFERENT COMPONENTS OR DIFFERENT DEPARTMENTS ARE MANAGING A UNUSED PROPERTY, I THINK IT TAKES AWAY FROM THEIR WORK.
YES SO I WOULD THINK THAT THAT WOULD BE THE BEST THING TO DO ON THAT END.
SO YOU HAVE ON HERE THAT THE PROPOSED BUDGET INCLUDES INCREASED FUNDING FOR ALL OF THIS STUFF.
ARE YOU STILL GOING TO HAVE ENOUGH?
>> SO WE DO HAVE MORE THIS YEAR THAN WE'VE RECEIVED EVER IN THE TIME THAT I'VE BEEN HERE.
THE NEW BUDGET HAS 26.2 MILLION DOLLAR WORTH OF MAJOR MAINTENANCE NEEDS.
SO INCLUDED IN THAT IS 11 MILLION DIRECTLY FOR MAJOR MAINTENANCE SUBSIDY FACILITIES.
THAT'S TWO MILLION MORE THAN WE'VE HAD IN THE PAST.
>> TWO MILLION DOLLARS IN A $5 BILLION BUDGET.
>> YES. BUT IT ALSO DOES INCLUDE ALLOCATIONS FOR THIS PILOT PROGRAM OF A THIRD PARTY PROPERTY MANAGER FOR SELECTED ASSETS THAT WE WANT TO TRY AND HAVE THAT.
SO IF IT'S EITHER VACANT PROPERTIES OR PROPERTIES WITH PRIVATE TENANTS PAYING MARKET RENT THAT ARE COMMANDING A HIGHER PREMIUM OR LEVEL OF SERVICE, THAT WE CAN TURN THOSE ASSETS OVER TO THIS THIRD PARTY, SO THAT THEY CAN JUMP ON THEM AND BRING THEM TO WHATEVER LEVEL SERVICE IS REQUIRED FOR THAT OR HELP US OUT WITH MANAGING THE VACANCY OR VACANT PROPERTY UNTIL IT'S SOLD OR DIVESTED.
>> SO IF YOU HAD A NUMBER, WHAT WOULD THAT NUMBER BE? I DON'T THINK 26 MILLION GETS YOU ANYWHERE NEAR WHAT YOU NEED TO KEEP OUR FACILITIES UP.
>> YOU MEAN JUST IN GENERAL? I WOULD NEED TO GO BACK AND LOOK.
>> I HAVE AN IDEA, BUT I'D LIKE YOU TO LOOK AT OUR TOTAL PORTFOLIOS VALUE IS.
>> WHAT I'M TRYING TO SAY IS WE TALK ABOUT THIS ASSET HAD THIS FAILURE OF THIS SYSTEM.
IT'S LIKE WE NEED TO TRACK IT BETTER AND PREPARE FOR WHEN WE NEED TO FIX THAT SYSTEM.
WE HAVE IT ACROSS ALL OF OURS.
I GUESS WHERE IS THAT A LOCKWOOD LIBRARY? CONSISTENTLY THE AC IS OUT.
SO WHERE IS THAT OTHER THAN GOING TO BOND FUNDS? I GUESS I'M GOING TO THE NEXT LEVEL IS, IF YOU ARE GOING TO HAVE THIS STRATEGY, AND WE WANT TO KEEP OUR FACILITIES UP,
[00:45:02]
HOW DO WE PAY FOR THAT?>> RIGHT NOW, THE FUNDING THAT WE HAVE ESSENTIALLY LIMITS THE DEPARTMENT AND THE CITY TO A REACTIVE POSTURE.
WE HAVE A VERY SMALL AMOUNT THAT REMAINS AT THE END OF THE YEAR THAT WE PROACTIVELY PROGRAM INTO MAJOR MAINTENANCE.
WHAT WE'VE DONE IS REDESIGN THE CAPITAL BUDGET, SO THAT THERE'S ANTICIPATED CRITICAL FAILURES, THERE'S ABATEMENT, EMERGENCY REPAIRS.
>> RIGHT. IF YOU WANT TO MOVE INTO A MORE PROACTIVE, IT WOULD JUST BE IDENTIFYING THOSE NEEDS AND THEN ESTIMATING AND THEN ALLOCATING THE FUNDS FOR THOSE, WHICH I THINK WE DISCUSSED WITH CITY HALL.
ONE OF THE NEEDS FOR HVAC IN THIS FACILITY WASN'T ABLE TO BE INCLUDED IN THE BOND PROGRAM, BUT IN THAT 26.2 MILLION, WE DO HAVE PLANS TO AT LEAST ADDRESS THE HVAC HOPEFULLY IN THAT PARTICULAR YEAR.
>> WE'LL BE SEEING ALL THESE PROCESSES THAT ARE BE COMING TO US, ARE SOME OF THEM REQUIRING US TO APPROVE THEM?
>> WELL, CERTAINLY, ANYTHING THAT WE DO WITH CODE CHANGES TO THE ORDINANCE, WE'LL COME BACK TO THE COUNCIL FOR YOU TO VOTE ON YES.
THEN WITH OUR REGULAR UPDATES TO GPM, WE CAN BRING WHATEVER SELECTED TOPICS OR INITIATIVES THAT YOU'D LIKE US TO LAUNCH.
>> I GUESS THE ADMINISTRATIVE DIRECTIVE IS A REGULATION.
IT'S NOT NECESSARILY COMES TO US.
>> THERE'S AN ADMINISTRATIVE DIRECTIVE THAT GOVERNS HOW ADMINISTRATIVE DIRECTIVES ARE PROCESSED, BUT CERTAINLY WE COULD BRING IT IN FOR YOU TO REVIEW AND LOOK AT.
>> I THINK THIS IS UNDERSTANDING WHAT WE HAVE AND HOW WE'RE GOING TO DEAL WITH IT OBVIOUSLY IS THE FIRST AND YOU TOOK SOME OF THE EXTREME CASES.
I THINK NOW WE NEED TO FIGURE OUT HOW DO WE INSTEAD OF BEING REACTIVE, A LITTLE PROACTIVE, NOT ALWAYS, BECAUSE ALWAYS CHASING YOUR TAIL GETS PRETTY TIRING.
I KNOW THAT WE'VE GOT A LOT OF OLDER BUILDINGS, ASBESTOS, IT'S ALL HAPPENING.
HOW DO YOU CREATE A SYSTEM IN WHICH YOU ARE FIGURING OUT WHAT IS COMING BEFORE IT GETS THERE.
I GUESS THAT WOULD BE A CHALLENGE TO YOU IF YOU CAN DO THAT IN YOUR NEXT PHASE.
>> CORRECT. THAT IS THE PROCESS THAT IT SHOULD.
YOU HAVE A MAJOR MAINTENANCE OR A CAPITAL WORK PLAN.
BUT WHAT WE HAD FOUND IN THE YEARS PAST IS THAT WHAT WE HAD ALLOCATED FOR PROJECTS TO BE COMPLETED, WE ENDED UP MEETING THAT MONEY FOR EMERGENCY REPAIRS OR ANTICIPATED CRITICAL FAILURE.
ANYTHING ABOVE THAT 9 MILLION THAT WE HAVE THAT WE ALREADY HOLD AND NO, WE ARE NOW WORKING TO TRY AND PROGRAM OUT TO DO A LITTLE BIT MORE PROACTIVE.
>> YOU WILL. THANK YOU. ANYBODY ELSE?
>> YES, SIR. GO AHEAD. CHAIR MARINO.
>> THANK YOU. I'M GOING TO GO BACK TO TECHNOLOGY.
WHEN WAS THE DEMO PERMIT PULLED, WHEN DID DEMO START, AND WHY ARE WE AT ONLY 50% CURRENTLY?
>> I'M GOING TO NEED TO SEE IF DARWIN OR SOMEONE IS AVAILABLE TO ANSWER THOSE QUESTIONS.
>> CHAIR MARINO, I CAN GET YOU THE ACTUAL DATE FOR THE DEMOLITION PERMIT.
I CAN PULL THAT FROM AN E MAIL I HAVE.
I DON'T HAVE IT IN FRONT OF ME RIGHT NOW.
BUT AS FAR AS WHY THE DEMOLITION HAS TAKEN SO LONG.
BASED ON THE UPDATE FROM THE DEVELOPER AS OF FRIDAY, THERE IS SO MUCH MATERIAL WITH THE DEMOLITION OF THIS BUILDING THAT IT IS TAKING A LITTLE TIME TO SEPARATE AND OFF, BUT WE ARE AT 50% RIGHT NOW, AND THE PLAN IS TO HAVE THAT AROUND 80% BY THE END OF THE MONTH.
THAT'S THE DELAY AROUND WHY THE BUILDING IS NOT TOTALLY DEMOLISHED AT THIS TIME, BUT I CAN PROVIDE YOU WITH THE DATE FOR THE PERMIT OF THE DEMO.
>> I APPRECIATE THAT. THE ONLY THING I'LL ADD IS WE HAVE TO HAVE THESE EXIT STRATEGY PLANS FOR THE BUILDINGS.
WE WANT TO MAKE SURE THAT IF WE'RE GOING TO SELL THESE PROPERTIES THAT PEOPLE AREN'T GOING IN, TEARING OUT, COPPER WIRING, THAT WE'RE NOT GOING IN AND INVESTING IN A NEW HVAC SYSTEM, TWO WEEKS, THREE WEEKS, A MONTH PRIOR TO POTENTIALLY SELLING A BUILDING.
AND SO I KNOW YOU GUYS ARE WORKING ON THOSE EXIT STRATEGIES, I JUST APPRECIATE IT AND IF YOU CAN JUST SEND ME A TIMELINE ON THAT TECHNOLOGY PROPERTY, I WOULD APPRECIATE IT.
>> THANK YOU. ANYBODY ELSE? WE ARE GOING TO MOVE ON, JOHN, I THINK YOU'RE STILL IN THE HOT SEAT FOR THE NEXT ONE.
>> THE NEXT ONE, I'LL JUST KICK THIS OFF.
THIS IS THE BULLINGTON TERMINAL AND THANKSGIVING FOUNDATION LEASE.
COLLEAGUES, AS PART OF OUR REAL ESTATE DISCUSSION, WE HAD THE LEASES TALKED ABOUT.
WE DISCUSSED THE LEASES A COUPLE OF MEETINGS AGO, AND THIS ONE WAS IDENTIFIED FIRST AS A 65 AND DOLLAR A YEAR LEASE, BUT STAFF HAS SINCE DETERMINED IT'S QUITE A BIT MORE THAN THAT.
I FOUND THE TUNNELS. I COULDN'T FIND THE TRUCK TERMINAL.
I'M VERY CURIOUS TO HEAR MORE ABOUT THE TRUCK TERMINAL AND WANT TO GO EXPLORE IT AT SOME POINT, AND SEE WHAT OUR TAXPAYERS ARE PAYING FOR. GO AHEAD.
[00:50:03]
>> ALL RIGHT, GREAT. WELL, WE'RE GOING TO KICK IT OFF THEN ON SLIDE THREE.
THAT'S THE PURPOSE OF TODAY'S BRIEFING IS TO ENSURE THAT COUNCIL HAS A CLEAR UNDERSTANDING OF THE BULLINGTON TRUCK TERMINALS CURRENT OPERATIONS AND THE FINANCIAL PICTURE.
WE WANT TO EXPLORE OPTIONS TO BRING THIS OPERATION CLOSER TO COST NEUTRAL.
A LITTLE BIT OF HISTORY, THE TERMINAL WAS CREATED TO CENTRALIZE LOADING AND UNLOADING UNDERGROUND FOR FOUR MAJOR BUILDINGS NEAR THANKSGIVING SQUARE.
THIS AGREEMENT, WHICH WAS ESTABLISHED IN 1973 SPANS 75 YEARS AND OUTLINES THE RESPONSIBILITIES FOR ALL PARTIES INVOLVED, INCLUDING THE CITY, WHICH ALSO OPERATES THE TRUCK TERMINAL AND THE UNDERGROUND PEDESTRIAN CONCOURSE.
WE PAY AN ANNUAL LEASE FOR THE CONCOURSE SPACE, WHICH CHANGES EVERY THREE YEARS, AND THE TRUCK TERMINAL IS ALSO GOVERNED BY CHAPTER 28 OF CITY CODE.
SLIDE 5 IS A BASIC REPRESENTATION OF THE TERMINAL LAYOUT.
IT SHOWS THE FOUR DIRECT CONNECTED USERS AND THE ONE SUB USER.
THEN YOU CAN SEE RIGHT THERE THE GREEN, THE ENTRY AND EXIT POINTS AND WHERE IT'S ACTUALLY THE CORNER OF PATTERSON AND NORTH AKARD.
IT DOES COME UP VERY QUICKLY IF YOU DON'T KNOW WHAT YOU'RE LOOKING FOR.
MOVING ON TO SLIDE 6 AND FOCUSING ON THE FINANCIALS.
HISTORICALLY, WE'VE ONLY BILLED USERS FOR OPERATING EXPENSES LIKE SECURITY, MAINTENANCE, AND UTILITIES, AND THE CITY'S LEASE PAYMENT FOR THE PEDESTRIAN CONCOURSE HAS NOT BEEN INCLUDED IN THOSE EXPENSES.
AS YOU CAN SEE, OPERATING EXPENSES HAVE HOVERED AROUND $380,000 ANNUALLY OVER THE LAST FEW YEARS.
WHILE THE LEASE PAYMENT IS AROUND 425,000 AND NOW INCREASING TO 512 IN FISCAL YEAR 25.
WHEN YOU ACCOUNT FOR SECURITY REIMBURSEMENTS AND OTHER REVENUES, THE UNRECOVERED EXPENSES FOR THIS PARTICULAR SERVICE ARE ABOUT $450,000 A YEAR.
TO ADDRESS THESE FINANCIAL CHALLENGES, WE'VE PROPOSED SEVERAL STEPS.
FIRST, WE'VE ALREADY BEEN COLLABORATING WITH THE USERS OF THE TRUCK TERMINAL TO UNDERSTAND THEIR NEEDS AND HOW THEY UTILIZE THE SPACE, AND EVERYONE HAS CONFIRMED THE TERMINAL IS CRUCIAL TO THEIR OPERATION.
WE ALSO NEED TO UPDATE CITY CODE TO ENSURE OPERATIONS ARE ALIGNED WITH THE ORDINANCE.
ANOTHER IMPORTANT STEP IS TO UPDATE OUR PROCESSES TO FACTOR IN ALL OPERATING EXPENSES, INCLUDING THE LEASE PAYMENT FOR THE PEDESTRIAN CONCOURSE INTO ALL THE COSTS THAT ARE BILLED BACK TO THE USERS.
WE PLAN TO PHASE THESE CHANGES OVER THE NEXT FEW YEARS TO GIVE ALL PARTIES TIME TO ADJUST AND TO BUDGET.
THEN THAT BRINGS ME TO OUR LAST SLIDE IN CONCLUSION FOR THE NEXT STEPS, WHICH ARE TO REVISED CITY CODE THAT IS APPLICABLE TO BULLINGTON TRUCK TERMINAL, TO INCORPORATE ALL EXPENSES BOTH FOR THE TRUCK TERMINAL AND THE PEDESTRIAN CONCOURSE INTO THE TOTAL OPERATING COSTS WHICH ARE CHARGED TO THE CONNECTED USERS, AND THEN RECEIVE COUNSEL'S FEEDBACKS AND THOUGHTS ON THE PATH FORWARD.
>> THANK YOU. A COUPLE OF QUESTIONS.
WHY IS IT NAMED BULLINGTON? DO YOU HAVE ANY IDEA?
>> I CANNOT ANSWER THAT, BUT I'LL SEE IF IT'S IN THE HISTORY.
>> SOMEBODY'S BEEN AROUND THAT LONG.
I WAS DOWN THERE WITH MY POOR STAFF MEMBERS I DRUG WITH ME LAST WEEK AND WE WERE TRYING TO FIND THIS PLACE AND COULD NOT FIND IT.
IT LOOKS LIKE IT'S HUGE THE WAY YOU DEPICTED IT.
IS IT LITERALLY LIKE A CITY BLOCK, THE SIZE OF IT?
>> IT'S FAIRLY LARGE. I DON'T KNOW THAT IT SPANS THE ENTIRE LENGTH OF THE BLOCK, BUT YOU DO HAVE ACCESS TO THE FOUR SURFACE FACILITIES FROM THIS PARTICULAR ASSET.
THINK ABOUT WHEN YOU WERE STANDING ON THE SURFACE OF THE STREET, IF YOU LOOK AT THOSE FOUR BUILDINGS, IT AT LEAST SPANS THAT FOOTPRINT.
I AND THEN GO TO THE NEXT SLIDE, SLIDE 6.
>> WE OWN THE IMPROVEMENTS ON THE THIRD LEVEL.
>> WHO ACTUALLY OWNS THE TRUCK TERMINAL.
>> WE OWN THE IMPROVEMENTS ON THE THIRD LEVEL.
WE OWN AND OPERATE THE TRUCK TERMINAL.
>> WE OWN AND OPERATE THE TRUCK TERMINAL.
WE PAY FOR THE OPERATING EXPENSES AND THEN WE'RE ALSO PAYING A LEASE ON TOP OF THAT.
FOR THE PEDESTRIAN CONCOURSE, WHICH IS THE SECOND LEVEL, YES SIR.
>> WE'RE PAYING A LEASE, AND THAT IS PAID TO THANKSGIVING SQUARE.
>> THANKSGIVING SQUARE FOUNDATION. YES, SIR.
>> WHAT DO WE GET OUT OF THAT PAYMENT?
>> WE GET ACCESS TO THE THIRD LEVEL IMPROVEMENTS FOR THE TRUCK TERMINAL, AND THEN WE ALSO HAVE THE RIGHT TO LEASE AND FIND TENANTS FOR THE PARTICULAR CONCOURSE OFFICES THAT WE AS CITY STAFF CAN THEN LEASE OUT TO SOMEONE FOR A PARTICULAR OFFICE SPACE OR SOME SORT OF OPERATION, SO WE RELEASE IT FOR REVENUE.
>> HOW MANY OFFICE SPACES OFF THE TUNNELS ARE VACANT RIGHT NOW?
>> THERE'S A TOTAL OF ONE OFFICE AREA THAT IT'S CURRENTLY VACANT.
>> I CAN GET YOU THAT REALLY QUICK IF YOU GIVE ME A SECOND.
>> SURE. MY UNDERSTANDING IS THE TUNNEL HAS IT'S MILES OF TUNNELS.
DO WE OWN AND MANAGE ALL OF THOSE MILES? HOW MANY MILES IS IT THAT WE OWN AND MANAGE?
[00:55:04]
>> I DON'T KNOW THE TOTAL, BUT THEY IT SPANS ESSENTIALLY ALL OF THE DOWNTOWN INFRASTRUCTURE, BUT MANY OF THEM WERE CLOSED OFF YEARS AGO.
EVEN THOUGH THERE MAY BE INFRASTRUCTURE, THERE ARE SOME THAT ARE BOARDED UP OR PERMANENTLY CLOSED, AND THE CITY ONLY HAS THE LEASE RIGHTS TO THE PARTICULAR PEDESTRIAN CONCOURSE UNDER THANKSGIVING SQUARE.
>> WHEN WE DO THIS AGAIN, WHICH I WOULD ASK FOR NEXT MONTH, I'D LIKE TO ACTUALLY HAVE A SITE MAP OF WHAT WE HAVE ACCESS TO FOR THE NEXT 25 YEARS, INCLUDING THE OFFICE SPACE THAT WE HAVE TO LEASE OUT.
WE'VE RECENTLY ASKED THE CITY MANAGER TO DO A SPACE STUDY, SO WE COULD TRY TO CONSOLIDATE SOME OFFICES, AND WE'VE GOT DEDICATED 25 YEARS THAT WE ARE WE'RE STUCK WITH SOME OF THESE PROPERTIES, WE NEED TO BE UTILIZING THEM IF EITHER FOR CITY STAFF OR AT LEAST WE NEED TO BE LEASING THEM OUT.
>> I WAS READING THAT THIS STRUCTURE WAS SUPPOSED TO TAKE 350 TRUCKS A DAY OFF OF THE ROADS OF DALLAS. HAVE YOU HEARD THAT?
>> I DON'T KNOW THE EXACT AMOUNT, BUT THE INTENTION OF IT WAS TO TAKE DELIVERIES FROM THE SURFACE LEVEL AND PUT THEM UNDERGROUND TO FREE UP SPACE IN DOWNTOWN.
OKAY. WELL, THE MAJOR SOURCE HERE IS JUST WIKIPEDIA, SO I DON'T KNOW HOW ACCURATE IS.
BUT DO YOU KNOW HOW MANY TRUCKS PER DAY ARE GOING IN THERE?
>> I DON'T AT THIS MOMENT, BUT THAT'S SOMETHING THAT WE'VE ASKED SECURITY TO HELP US WITH BECAUSE THEY MONITOR INDIVIDUALS COMING IN AND OUT, SO THEY ARE PULLING THAT INFORMATION AND WE CAN SHARE WITH YOU.
>> I THINK IT'S IMPORTANT TO UNDERSTAND HOW MUCH UTILIZATION IS ACTUALLY HAPPENING THERE.
IT SEEMS LIKE THIS WAS ACTUALLY MEANT TO HELP TRAFFIC DOWNTOWN, WHICH I THINK ANYBODY WOULD AGREE IS A GOOD IDEA, BUT I'M NOT SURE THAT IT'S ACTUALLY TURNED OUT THAT WAY.
I APPRECIATE YOU BRINGING THIS FORWARD.
I APPRECIATE YOU STAYING WITH IT.
CLEARLY, THIS NEEDS SOME ATTENTION.
LOOK FORWARD TO GETTING SOME MORE INFORMATION. THANK YOU.
>> ANYBODY ELSE? THANK YOU VERY MUCH.
>> YOU WANT TO STICK AROUND FOR THE NEXT ONE, JOHN? HE'S OUT. WE WILL MOVE ON TO ITEM D, THE END OF YEAR APPROPRIATION ADJUSTMENTS.
>> GOOD AFTERNOON. CHAIR COMMITTEE MEMBERS.
MY NAME IS JANETTE WEEDEN, DIRECTOR OF BUDGET AND MANAGEMENT SERVICES.
JOINING ME THIS AFTERNOON REMOTE.
WE HAVE AVNGUO, WHO IS THE ASSISTANT DIRECTOR OF OPERATING CAPITAL DEVELOPMENT AND SHAN WILLIAMS, ASSISTANT DIRECTOR OF GRANTS.
WE ARE HERE TODAY TO TALK ABOUT THE FISCAL YEAR 24 END OF YEAR BUDGET APPROPRIATION ADJUSTMENTS.
AS I'VE SHARED PREVIOUSLY, WHEN WE TALK ABOUT BUDGET ADJUSTMENTS, WE TYPICALLY HISTORICALLY AMEND THE BUDGET AT END OF YEAR.
THE BUDGET APPROPRIATION ORDINANCE PRESENTED WILL BE PRESENTED TO CITY COUNCIL ON WEDNESDAY, SEPTEMBER 25TH.
THIS WILL BE OUR FIFTH ADJUSTMENT THIS YEAR, SO THIS IS A UNIQUE YEAR.
I'M GOING TO TURN IT OVER TO IVAN GUEL TO LEAD THE DISCUSSION THIS AFTERNOON, SO IVAN.
>> THANK YOU VERY MUCH, MISS SWEETEN.
IVAN GUEL, ASSISTANT DIRECTOR IN BUDGET AND MANAGEMENT SERVICES.
TODAY, I'M GOING TO WALK YOU THROUGH THE FY 24 R BUDGET ADJUSTMENTS FOR ALL IMPACTED OPERATING AND CAPITAL FUNDS.
THIS WILL BE THE FIFTH BUDGET ORDINANCE THAT IS IMPACTING THE ORIGINAL FY 24 APPROPRIATION ORDINANCE.
ON SLIDE TWO, YOU'RE GOING TO SEE THE RUN OF SHOW.
WE'RE GOING TO TOUCH ON THE AUTHORIZING CHARTER LANGUAGE THAT ALLOWS FOR THE VARIOUS BUDGET ADJUSTMENTS THAT YOU'RE GOING TO SEE THROUGHOUT THE PRESENTATION.
THEN WE WILL GO THROUGH THE ACTUAL BUDGET ADJUSTMENTS AND THE PURPOSE AND THE USE OF FUNDS FOR EACH OPERATING CAPITAL FUND.
THEN LASTLY, WE WILL PROVIDE A STAFF RECOMMENDATION AND THE NEXT STEPS FOR THE COMMITTEE TO TAKE WITH THIS ITEM.
ON SLIDE 3, YOU'LL SEE WHAT WE CALL FOR THE RULES OF ENGAGEMENT FOR APPROACHING ANY CHANGES TO THE ADOPTED BUDGET PER THE CITY CHARTER AND MORE SPECIFICALLY, CHAPTER 11.
THE FIRST BULLET FROM CHAPTER 11 MEANS THAT ONLY THE CITY COUNCIL CAN ESTABLISH BUDGET, SORRY, FOR ANY OF THE CITY'S FUNDS.
THE SECOND BULLET MEANS THAT ONLY THE CITY COUNCIL CAN MOVE BUDGETS BETWEEN DEPARTMENTS AND DIVISIONS WITHIN ESTABLISHED FUNDS FOR ANY PURPOSE DESIRED.
THE THIRD BULLET MEANS THAT IF THERE IS MORE REVENUE THAN ANTICIPATED, THEN THE CITY COUNCIL CAN APPROPRIATE EXPENSE BUDGETS TO MATCH THE INCREASED REVENUE.
[01:00:05]
FINALLY, THE LAST BULLET MEANS THAT DEPARTMENTS AND FUNDS SHOULD NOT EXCEED THEIR BUDGETS AS AUTHORIZED BY THE CITY COUNCIL.ON THE NEXT SLIDE, WE'RE JUST GOING TO SORT OF REITERATE THE HISTORY THAT THE CURRENT YEAR, THE FY 24 BUDGET ORDINANCE HAS UNDERGONE SINCE ITS INITIAL ADOPTION BY THE CITY COUNCIL ON SEPTEMBER 20TH, 2023.
SINCE ADOPTION, A RECORD NUMBER OF AMENDMENTS HERE.
SEVERAL AMENDMENTS, AT LEAST IN MY TIME HERE, SEVERAL AMENDMENTS HAVE BEEN MADE ON THE FOLLOWING DATES, FEBRUARY 28, MAY 8, JUNE 26, AND AUGUST 14 OF THIS YEAR.
THE FEBRUARY AMENDMENTS WERE THE ADJUSTMENTS MADE WITH THE RPA REALLOCATION FUND.
THE MAY AMENDMENTS WERE SORT OF THE STANDARD MID YEAR ORDINANCE THAT YOU SEE AROUND THAT TIME DOES SORT OF GO HAND IN HAND WITH THE END OF ORDINANCE AND THAT'S JUST TYPICALLY BEEN DONE ON AN ANNUAL BASIS.
THE JUNE AND AUGUST AMENDMENTS WERE MADE TO REORGANIZE AND CONSOLIDATE MANY CITY DEPARTMENTS AND SERVICES, SUCH AS COMMUNICATIONS AND CUSTOMER EXPERIENCE, SLASH 301, FACILITIES AND REAL ESTATE MANAGEMENT, EMERGENCY MANAGEMENT AND CRISIS RESPONSE, AND VASH MALI'S PLANNING AND DEVELOPMENT.
THESE AMENDMENTS WERE ESSENTIAL TO SHARE COMPLIANCE WITH THE CITY CHARTER AND TO PROVIDE ADEQUATE APPROPRIATIONS FOR OUR DEPARTMENTS THROUGH THE END OF THE FISCAL YEAR, WHICH WILL BE ON SEPTEMBER 30TH, 2024 OR SEVEN DAYS FROM NOW NEXT WEEK.
>> LET'S DISCUSS THE PURPOSE OF THESE AMENDMENTS.
THEY MAY INCLUDE ADJUSTMENTS TO ADDRESS REVENUE SHORTFALLS AND FORECAST OVERRUNS, INCREASES IN REVENUE AND EXPENDITURES RELATED TO GRANTS, TRUST, AND OTHER FUNDS, ADJUSTMENTS FOR ENTERPRISE AND INTERNAL SERVICE FUNDS, REVENUE AND EXPENDITURES, CAPITAL APPROPRIATION ADJUSTMENTS, AND THEN LASTLY, ANY APPROPRIATION ADJUSTMENTS THAT HAVE PREVIOUSLY BEEN APPROVED BY CITY COUNCIL RESOLUTION THROUGHOUT THE FISCAL YEAR.
ON SLIDE 6, YOU'RE GOING TO SEE A CHART WITH A HIGH LEVEL OVERVIEW OF THE FINANCIAL SUMMARY OF THE CITY'S CURRENT BUDGET AND THE TOTAL AMOUNT THAT'S GOING TO BE INCREASED IN THE PROPOSED AMENDMENTS THAT YOU SEE IN THIS PRESENTATION.
BUT THE CITY'S OPERATING AND CAPITAL BUDGET THROUGH SEPTEMBER 11TH IS $5.5 BILLION.
YOU'RE GOING TO SEE THAT ON THAT LEFT HAND COLUMN OF NUMBERS ON YOUR SCREEN.
THE AMENDMENTS TOTAL AN INCREASE OF ABOUT $182 MILLION.
WITH THIS PROPOSAL, THE FINAL BUDGET WILL BE INCREASED TO $5.7 BILLION.
ON THE NEXT FOUR SLIDES, WE'LL DISCUSS THE CURRENT STATE OF GENERAL FUND REVENUES AND HOW THEY IMPACT OUR LATEST FORECASTS.
ON SLIDE 8, YOU WILL SEE A SUMMARY OF THE MAJOR REVENUE CATEGORIES WITHIN THE GENERAL FUND.
AS YOU KNOW, PROPERTY AND SALES TAX COMPRISE THE MAJORITY OF THE GENERAL FUND REVENUES, MAKING UP OVER 81% OF ALL GENERAL FUND REVENUES.
CURRENTLY, WE ARE FORECASTING GENERAL FUND REVENUES TO BE ABOUT $5 MILLION UNDER BUDGET AS A WHOLE.
ON SLIDE 9, AND A CLOSER LOOK AT OUR REVENUE FORECASTS, WE ARE SEEING SHORTFALLS IN THREE KEY AREAS; PROPERTY TAX, WE ARE FORECASTING A SHORTFALL OF ABOUT $20 MILLION DUE TO RESOLVED LITIGATION, WHICH HAS RESULTED IN LOWER PROPERTY VALUES.
SALES TAX NUMBER 2, THE FORECAST SHOWS ABOUT A $9 MILLION SHORTFALL.
AS COLLECTIONS HAVE RETURNED TO HISTORICAL TRENDS, MOVING AWAY FROM THE ELEVATED LEVELS THAT WE SAW PREVIOUSLY IN FY '22 AND FY '23.
THE THIRD, CHARGES FOR SERVICES, WE DO ANTICIPATE ABOUT A $9 MILLION SHORTFALL DUE TO CHANGES IN THE REIMBURSEMENT FORMULA FOR THE TEXAS AMBULANCE SUPPLEMENTAL PAYMENT PROGRAM, SPECIFICALLY RELATED TO THE AMBULANCE SERVICES.
TO ADDRESS THESE REVENUE LOSSES, WE DO HAVE SOME STRATEGIES IN PLACE OF EXPENSE REDUCTIONS.
WE WILL BE IMPLEMENTING EXPENSE REDUCTIONS ACROSS VARIOUS DEPARTMENTS THAT HELP BOUNCE THE BUDGET.
OFFSETTING REVENUE STREAMS ARE PERFORMING BETTER THAN ORIGINALLY BUDGETED, WHICH WILL HELP MITIGATE SOME OF THE SHORTFALLS.
THEN REVENUE STABILIZATION FUND, WE PLAN TO USE THAT REVENUE STABILIZATION FUND TO COVER SOME OF THE GAPS CAUSED BY THESE SHORTFALLS.
ON SLIDE 10, DIVING INTO THE SPECIFICS OF THE PROPERTY TAX FORECAST, WE'RE CURRENTLY PROJECTING A SHORTFALL OF $20 MILLION, AS I SAID ON THE PREVIOUS SLIDE.
THE DECLINE IS ATTRIBUTED TO TWO MAIN FACTORS OF DECREASE IN CURRENT YEAR COLLECTIONS, AND AN INCREASE IN REFUNDS OF PRIOR YEAR TAXES.
THE DECLINE IN PROPERTY TAX REVENUE IS LARGELY DUE TO THE RESOLUTION OF LITIGATION INVOLVING THE DALLAS CENTRAL APPRAISAL DISTRICT, AND THE LITIGATION HAS RESULTED IN A LOWER TOTAL PROPERTY VALUE ASSESSMENT ACROSS THE CITY.
PROPERTY OWNERS DO HAVE THE OPTION TO APPEAL OR FILE A LAWSUIT AGAINST THE APPRAISAL REVIEW BOARD DECISION,
[01:05:02]
AND THIS [INAUDIBLE] A RECORD NUMBER OF CASES ENTERING THAT LITIGATION.IN RESPONSE TO THESE TRENDS, WE DID ADJUST, RECENTLY, AS PART OF THE ADOPTED BUDGET ASSUMPTIONS THAT WAS JUST DONE LAST WEEK OVER THE SUMMER, AND THIS PROACTIVE APPROACH AIMS TO BETTER REFLECT THE ONGOING CHALLENGES IN PROPERTY TAX REVENUE COLLECTION.
ON SLIDE 11, LET'S DISCUSS THE REVENUE STABILIZATION FUND THAT I MENTIONED EARLIER.
THIS FUND WAS ESTABLISHED IN FY '20 WITH THE GOAL OF OFFSETTING OR STABILIZING FORECAST DECLINES IN GENERAL FUND REVENUES DUE TO THE PANDEMIC.
WHILE THE REVENUE STABILIZATION FUND WAS BUDGETED FOR USE IN FY '22 AND FY '23, IT ULTIMATELY DID REMAIN UNUSED AND CURRENTLY THE FUND HAS A BALANCE OF ABOUT $38 MILLION.
FOR THE FY '24 CURRENT YEAR BUDGET, WE ARE FORECASTING $28 MILLION OR SO IN THE OPERATING TRANSFERS IN CATEGORY FROM THE REVENUE STABILIZATION FUND.
THIS WILL HELP TO MITIGATE SOME OF THE REVENUE SHORTFALLS WE DISCUSSED EARLIER.
THE NEXT COUPLE OF SLIDES, WE'RE GOING TO TURN OUR ATTENTION OVER TO GENERAL FUND EXPENDITURES.
WE DO HAVE SOME UPDATES REGARDING PREVIOUSLY APPROVED ADJUSTMENTS.
TO START, JUST $2.1 MILLION IN PREVIOUSLY APPROVED ADJUSTMENTS THAT WERE AUTHORIZED BY THE CITY COUNCIL ON SEPTEMBER 11TH, A FEW WEEKS AGO, AND SPECIFICALLY FOR COSTS RELATED TO THE UPCOMING NOVEMBER.
ADDITIONALLY, WE WILL IMPLEMENT [INAUDIBLE] ZERO TRANSFERS BETWEEN DEPARTMENTS IN YEAR END.
BUT THE ONE KEY ADJUSTMENT THAT YOU SEE ON THE SLIDE HERE, IT INVOLVES THE SALARY AND BENEFIT RESERVE, WHICH WE PLAN TO USE ABOUT $145,000 FROM THIS RESERVE TO COVER FOR TERMINATION PAYOUTS, PAYMENTS IN THE CITY MANAGER'S OFFICE.
ON SLIDE 14, THE ORDINANCE AMENDMENT WILL ALLOW US TO TRANSFER PREPARATIONS BETWEEN DEPARTMENTS AS OUTLINED IN CITY CHARTER CHAPTER 11.
AS OF JULY 31ST, 2024, WE ARE PROJECTING YEAR END [INAUDIBLE] TOTALING ABOUT $11.4 MILLION ACROSS SEVERAL DEPARTMENTS.
YOU STILL START WITH THE BREAKOUT THERE BELOW IN THE SLIDE.
CITY SECRETARY'S OFFICE IS $59,000 OVER BUDGET DUE TO THE TEMPORARY STAFFING FOR DPD OPEN REFER REQUESTS.
THE MANAGER'S OFFICE, 153,000 ATTRIBUTED TO POSITION CLASSIFICATION ACTIONS.
>> EXCUSE ME. I'M GOING TO ASK, DON'T GO LINE BY LINE ON THAT, PLEASE.
WE CAN JUST HIT THE HIGHLIGHTS.
>> SURE. THE TWO MAJOR ONES ARE POLICE AND FIRE PRIMARILY DUE TO OVERTIME, UNIFORM OVERTIME, AND NECESSARY FLEET MAINTENANCE AND REPAIRS.
WE CAN GO TO THE NEXT SLIDE ON SLIDE 15.
I WON'T READ THIS ONE OUT LOUD.
BUT AS PART OF MANAGING THE BUDGET EFFECTIVELY, YOU'RE GOING TO SEE A LISTING OF GENERAL FUND DEPARTMENTS THAT ARE GOING TO BE DECREASED BY THAT $11.4 MILLION NUMBER I MENTIONED EARLIER.
THIS IS DUE TO PROJECTED YEAR END SAVINGS, TO FULLY OFFSET THE EXPENSE COVERAGES THAT YOU SAW ON THE PREVIOUS SLIDE.
OUR NEXT FEW SLIDES, WE'RE GOING TO DISCUSS THE APPROPRIATION ADJUSTMENTS TO BE MADE IN THE NON-GENERAL FUND, OPERATING FUNDS, AND THE CAPITAL FUNDS.
ON THE NEXT SLIDE, YOU'RE GOING TO SEE ADJUSTMENTS TO GRANTS TRUST MANAGE FUNDS.
THIS MEETING WILL DISCUSS THE ARPA REALLOCATION FUND LATER ON, BUT IN THIS SLIDE, WE'RE GOING TO TALK ABOUT $61 MILLION AND THE TOTAL $74 MILLION IN THIS CATEGORY.
FIRST OFF YOU'LL SEE IS REVENUE STABILIZATION FUND, 8.7 MILLION DOLLARS, AND THIS IS GOING TO FULLY APPROPRIATE THE $38 MILLION THAT'S AVAILABLE IN CASH AND NET FUND.
THE IT EQUIPMENT FUND, $5 MILLION TO SUPPORT CRITICAL TECHNOLOGY INFRASTRUCTURE UPGRADES, ENSURING THAT THE CITY'S SYSTEMS REMAIN MODERN AND EFFICIENT.
THE OPERATING CARRYOVER FUND, $1.2 MILLION, $200,000 WILL BE FOR THE POLICE DEPARTMENT TO COMPLETE REPAIRS TO GATES LOCATED AT THE SOUTHWEST AND THE SOUTH CENTRAL POLICE STATIONS.
$1 MILLION FOR PLANNING AND DEVELOPMENT IN THAT OPERATING CARRY OVER FUND WILL BE USED TO COMPLETE WORK ON THE DEVELOPMENT CODE UPDATES, AND THAT WILL JUST BE TRANSFERS FROM THE GENERAL FUND TO THIS OPERATING CARRYOVER FUND.
REVENUE PROJECT FUND $37 MILLION, WHICH IS THE CURRENT TOTAL REVENUE THAT THE CITY HAS RECEIVED FROM BRIMER FUNDS, AND THE FAIR PARK DEBT SERVICE FUND $7.4 MILLION TO JUST ADDRESS OUTSTANDING OBLIGATIONS.
THESE ARE THE DEBT SERVICE PAYMENTS FOR FAIR PARK DEBT, WHICH IS 20% OF ALL VENUE PROJECT FUND REVENUES.
STATE FAIR, TEXAS, 900,000 TO MAKE PAYMENTS FOR STATE FAIR TEXAS RENT TO FAIR PARK [INAUDIBLE].
ON THE NEXT SLIDE, MOVING ON TO ENTERPRISE FUNDS.
THESE ADJUSTMENTS WERE FULLY SUPPORTED BY INCREASED REVENUES THAT HAVE BEEN EXPERIENCED DURING THIS CURRENT FISCAL YEAR.
FIRST, DALLAS FUND UTILITIES IS GOING TO RECEIVE AN APPROPRIATION ADJUSTMENT OF $26 MILLION, SPLIT BETWEEN TWO KEY AREAS, $10 MILLION FOR CAPITAL CONSTRUCTION AND EQUIPMENT PURCHASES, TO MAINTAIN AND EXPAND IN THE WATER AND INFRASTRUCTURE,
[01:10:03]
AND $16.7 MILLION DUE TO HIGHER THAN EXPECTED WATER CONSUMPTION.LASTLY, SANITATION SERVICES IN THE ENTERPRISE FUND SECTION, WILL RECEIVE $12 MILLION TO SUPPORT COSTS ASSOCIATED WITH THE MAY 2024 REFORMS. ON SLIDE 19, MOVING TO CAPITAL PROPOSED ADJUSTMENTS, OF THE $68 MILLION IN TOTAL ADJUSTMENTS IN THIS CATEGORY, $19 MILLION ARE PREVIOUSLY APPROVED ADJUSTMENTS ACROSS VARIOUS CAPITAL FUNDS SINCE APRIL 10 OF THIS YEAR.
IN ADDITION TO THESE PREVIOUSLY APPROVED ADJUSTMENTS, WE HAVE NEW APPROPRIATION REQUESTS TOTALING $50 MILLION, SUPPORTING SEVERAL KEY INFRASTRUCTURE PROJECTS.
FIRST MAJOR ALLOCATION IS THE $10 MILLION I MENTIONED EARLIER, IT IS GOING TO BE TRANSFERRED FROM DALLAS WATER ENTERPRISE FUND, AND THAT'S GOING TO GO TO A COUPLE OF CAPITAL FUNDS TO FUND PHASE 1 CONSTRUCTION OF THE LAKE JUNE PUMP STATION, $12 MILLION FOR STORM WATER DRAINAGE MANAGEMENT, TO GO TOWARDS FLEET REPLACEMENT, CONSTRUCTION OF THE STORM WATER OPERATION FACILITY, AND TO COVER OVERAGES AND EMERGENCY REPAIRS RELATED TO RIVER EROSION, TO MITIGATE THE IMPACT OF NATURAL DISASTERS ON OUR STORM WATER SYSTEMS. $27 MILLION DIRECTED TOWARD STREET AND ALLEY INVESTMENT, INVESTMENTS WHICH ARE A KEY PRIORITY FOR THE CITY.
LAST BUT NOT AT LEAST, ABOUT $30,000 TO FACILITATE THE CLOSEOUT OF VARIOUS BOND FUNDS.
BUT WITH THAT, I TURN IT OVER TO MS. [INAUDIBLE] TO DISCUSS ARPA AND SOME PROPOSED RE ALLOCATIONS.
ON SLIDE 21, WE'RE GOING TO TRANSITION AND TALK ABOUT THE ARPA FUND.
AS YOU KNOW, THE CITY RECEIVED 355.4 MILLION IN LOCAL FISCAL RECOVERY FUNDS.
WE'VE TALKED ABOUT THIS IN THE PAST.
OUR ORIGINAL ALLOCATIONS WERE MADE IN SEPTEMBER OF 2021.
AT THAT TIME, COUNCIL APPROVED A THREE-YEAR SPENDING PLAN.
TODAY'S RECOMMENDATION REFLECTS THE REALLOCATION OF FUNDS.
OUR LAST ACTION WAS IN MAY OF 2024 SO THIS IS JUST REALLOCATION ONLY.
ON SLIDE 22, AS YOU KNOW, ALL FUNDS IN THE GRANT FUND MUST BE OBLIGATED BY SEPTEMBER 30TH OR THEY MUST BE RETURNED TO US TREASURY.
LAST MONTH WE SHARED WITH YOU ALL THE REMAINING UNENCUMBERED BALANCE IN THE GRANT FUND, THAT BALANCE, AS OF JUNE 30, WHICH WAS OUR SECOND QUARTER CALENDAR YEAR REPORT AND THIRD QUARTER FISCAL YEAR REPORT THAT WE SHARED WITH TREASURY, THAT NUMBER LAST MONTH WAS 27.4 MILLION, AND TODAY WE ARE HERE WITH THE REMAINING REALLOCATED BALANCE OF ABOUT, CAN WE MOVE TO SLIDE 23? OF 25.7 MILLION.
OUR DESIRE TODAY IS TO RECOMMEND A REALLOCATION OF 25.7 MILLION TO DALLAS FIRE RESCUE PAYROLL.
OUR PRIOR REALLOCATIONS TOTALED 159.3 MILLION, AND SO THIS ACTION WILL INCREASE THE TOTAL TO 185 MILLION.
THE PROPOSED PROJECTS TO BE REALLOCATED ARE LISTED HERE.
WE ARE NOT PROPOSING A CHANGE TO PROJECTS LISTED HERE AT THIS TIME WITH THE EXCEPTION OF TWO LINE ITEMS. THE INTEREST EARNINGS FOR BUDGET AND MANAGEMENT SERVICES TOTALS ABOUT $5 MILLION, AND THEN THE FEMA REALLOCATION THAT YOU SEE ON THE LINE FOR THE OFFICE OF EMERGENCY MANAGEMENT.
THOSE LINE ITEMS HAVE ALREADY BEEN REALLOCATED.
THEY WERE PART OF THE CITY MANAGER'S RECOMMENDED BUDGET.
THERE ARE A FEW RESIDUAL BALANCES THAT REFLECT PROJECTS THAT ARE COMPLETE, AND THOSE BALANCES MAY BE AVAILABLE FOR REPROGRAMMING.
BUT AGAIN, TODAY'S RECOMMENDATION IS JUST A REALLOCATION.
IT IS OUR GOAL TO COME BACK TO THIS COMMITTEE DURING THE FIRST QUARTER OF FISCAL YEAR '25, AND RECEIVE FEEDBACK FROM YOU ALL REGARDING REPROGRAMMING.
ON SLIDE NUMBER 25. AGAIN, THIS IS JUST A REMINDER OF ACTIONS THAT HAVE ALREADY BEEN APPROVED BY CITY COUNCIL.
THE FISCAL YEAR '25 ADOPTED BUDGET THAT WAS APPROVED ON THE 18TH INCLUDED THREE SIGNIFICANT REPROGRAMMING.
YOU'LL NOTICE THAT WE REPROGRAMMED 18.4 MILLION FROM THE MIDDLE MILE.
THAT FUNDING WAS ALLOCATED TO BOTH FACILITY MAINTENANCE AND PAVEMENT MARKINGS, AND THEN THE FISCAL YEAR '25 ADOPTED BUDGET INCLUDED THAT REPROGRAMMING OF INTEREST EARNINGS AND FEMA REIMBURSEMENT, SO THAT WAS 5.8 MILLION TO STREET MAINTENANCE.
SLIDE NUMBER 27 REFLECTS NEXT STEP.
CITY COUNCIL WILL CONSIDER THE BUDGET ORDINANCE FOR APPROVAL ON WEDNESDAY THE 25TH.
BEFORE I CONCLUDE, I WOULD LIKE TO DIRECT YOU TO THE APPENDIX.
THE APPENDIX INCLUDES THE CURRENT PROJECTS THAT HAVE BEEN MOVED TO THE ARPA REDEVELOPMENT FUND,
[01:15:02]
SO FROM THE GRANT FUND TO OUR MULTI-YEAR FUND.THIS ALLOWS US TO CONTINUE THOSE PROJECTS AFTER SEPTEMBER 30TH.
THE RECOMMENDED PROJECTS ON SLIDE NUMBER 24 WILL BE ADDED TO THIS LIST OF PROJECTS, AND SO MOVING FORWARD, IT IS OUR GOAL TO REPORT THE ARPA REDEVELOPMENT FUND TO THIS COMMITTEE AND STATUS OF THOSE PROJECTS.
OF COURSE, WE ARE AT THE END OF THE PRESENTATION.
THIS CONCLUDES OUR PREPARED REMARKS AND WE ARE AVAILABLE TO ANSWER ANY QUESTIONS YOU MAY HAVE.
>> THANK YOU. COMMITTEE, QUESTIONS? MS. [INAUDIBLE].
>> MY FIRST QUESTION IS ABOUT THE INFORMATION ABOUT THE APPEALED CASES TO DCAD.
I'M WONDERING IF YOU KNOW THE BREAKDOWN OF RESIDENTIAL TO COMMERCIAL.
>> WE DO NOT HAVE A BREAKDOWN OF RESIDENTIAL TO COMMERCIAL.
I CAN TELL YOU THAT THE INCREASE HAS BEEN ABOUT 2% INCREASE OVERALL.
WE ASSUMED AS PART OF THE BUDGET, AN AVERAGE OF 7% CHANGE IN VALUES ASSOCIATED WITH LITIGATION, AND WE REALIZED A 9% CHANGE.
WE'VE HAD ONE PARTICULAR PROPERTY, IT'S A COMMERCIAL PROPERTY.
VALUE CHANGED OVER $100 MILLION.
THERE'S BEEN A LOT OF LITIGATION ACTIVITY ASSOCIATED WITH APPRAISALS.
>> WELL, THERE HAS BEEN, AND I THINK THERE'S GOING TO CONTINUE TO BE MORE BECAUSE THEY'RE VERY SUCCESSFUL.
>> HOW DO YOU SEE THAT AS A FORECAST FOR REVENUE FOR US?
>> WE HAVE MADE SOME ASSUMPTIONS AS INDICATED ON SLIDE NUMBER 10.
HISTORICALLY, WE WERE USING A THREE-YEAR AVERAGE FOR LITIGATION SETTLEMENTS.
WE'VE CHANGED THAT TO A TWO-YEAR, SO AGAIN, WE WENT FROM ABOUT A 7% CHANGE IN VALUE TO 9%, JUST LOOKING AT VALUES FROM SETTLEMENTS.
WE ALSO ADJUSTED OUR COLLECTION RATE TO REFLECT THE FACT THAT WE'VE NEVER HISTORICALLY BUDGETED 100% COLLECTIONS, AND SO WE'VE REDUCED THAT FURTHER.
IN ADDITION TO THAT, WE HAVE BUDGETED A NEGATIVE REVENUE FOR A PRIOR YEAR.
HISTORICALLY, WE'VE AVERAGED ABOUT 2.5, $3 MILLION IN PRIOR YEAR COLLECTIONS.
THAT WOULD HAVE BEEN THE NET OF BOTH REFUNDS AND FOLKS PAYING PRIOR YEAR TAXES AND SO WE'VE BUDGETED A NEGATIVE.
IT'S ABOUT $10 MILLION IN THAT LINE ITEM.
WE'VE DONE THOSE THREE THINGS TO MITIGATE THE IMPACT OF THE CONTINUED LITIGATION.
>> WELL, PRETTY SOBERING, BUT THANK YOU FOR SHARING THAT.
I DIDN'T UNDERSTAND THE NEGATIVE BUDGETING FOR THE PRIOR YEARS.
YOU'RE RIGHT, I HAVEN'T SEEN THAT.
WITH ARPA MONEY, WE PLEDGED A LOT OF DOLLARS TO FIRE OVERTIME, SO THAT'S ALL SET.
MY UNDERSTANDING IS THE MONEY THAT WE HAD USED FOR GENERAL FUND, THAT ALREADY HAD PAID THE FIRE DEPARTMENT, WENT TO MULTI-FUND, IS THAT TRUE?
>> THAT IS CORRECT. THE APPENDIX THAT WE ARE SHARING WITH YOU SHOW THE FIRST TRANCHE OF MONEY THAT WAS PART OF THE REALLOCATION.
YOU'LL SEE THAT THERE'S A BUDGET IN THE APPENDIX OF 159.3 MILLION, AND SO THIS REFLECTS THOSE PROJECTS THAT HAVE BEEN REALLOCATED FROM THE GRANT FUND TO THE ARPA REDEVELOPMENT FUND, WHICH IS THE MULTI-YEAR FUND.
>> IT WOULD BE IN ORDER FOR THERE TO BE A MOTION THAT WOULD UTILIZE ANY OF THOSE FUNDS FOR NECESSARY ITEMS?
>> THIS PRESENTATION IS FISCAL YEAR '24, END OF YEAR, SO IF IT PERTAINS TO, I GUESS WHAT'S APPROPRIATED, THEN A MOTION WOULD BE APPROPRIATE.
>> LET'S SEE. WELL, THAT WAS ALL MY ITEMS THAT I HAD QUESTIONS ON FOR THE BUDGET AMENDMENT.
>> THANK YOU. ANYONE ELSE? ALL RIGHT. THANK YOU VERY MUCH.
NEXT, I'M GOING TO INVITE MR. SWAN TO COME UP AND PRESENT THE OFFICE OF CITY AUDITOR, FISCAL YEAR '25 RECOMMENDED ANNUAL AUDIT WORK PLAN.
>> CHAIR AND COMMITTEE MEMBERS, I'M MARK SWAN, CITY AUDITOR.
FOR TODAY, I HAD THE RECOMMENDED AUDIT WORK PLAN FOR FISCAL YEAR 2025.
THE PLAN INCLUDES 25 NEW POTENTIAL AUDIT ENGAGEMENTS,
[01:20:03]
ALONG WITH THE 14 AUDITS THAT ARE ALREADY IN PROGRESS WITH A COMMITMENT TO COMPLETE 20 AUDIT PROJECTS IN FISCAL YEAR 2025.I USED THE SAME FORMAT AS WE ENDED UP WITH LAST YEAR, OF A GREEN CODE BEING THEY WOULD BE PRIORITIZED AND WHERE A SOURCE, IF IT CAME FROM.
AS LAST YEAR, WE DID A CALL OUT TO ALL THE DIRECTORS AND TO THE COUNCIL MEMBERS AND REQUESTING FOR, IF THEY HAD ANY IDEAS, TO BE ADDED.
I WILL LEAVE IT AT THAT. IF YOU HAVE ANY QUESTIONS, WE'LL HOPE FOR A FULL COUNCIL APPROVAL ON OCTOBER 23RD.
HOW DID YOU AND YOUR TEAM COME UP WITH THE AUDITS YOU DECIDED TO SELECT VERSUS THE ONES THAT ARE NOT PRIORITIZED IN GREEN? WHAT'S THE RATIONALE?
>> ON THE PRIORITIZATION, USUALLY IF IT WAS A COUNCIL MEMBER WHO REQUESTED IT, I PRIORITIZED IT.
>> I AM GOING TO LOOK AT NUMBER 7.
YOU HAVE CITY HALL OFFICE USAGE, AND IT'S IN GREEN, SO IT'S PRIORITIZED.
I'M JUST CURIOUS ON HOW AN AUDITOR WHO USUALLY LOOKS AT NUMBERS, IS NOW GOING TO LOOK AT THIS, AND IT'S 1,000 HOURS WORTH OR IS THAT JUST A GUESSTIMATE?
>> WELL, WHAT WE DO IS ALLOCATE 1,000 HOURS FOR EACH AUDIT, HOPING TO AVERAGE 1,000 HOURS OVERALL, AND SO IT'S NOT NECESSARILY REFLECTION OF THAT PARTICULAR AUDIT'S EFFORT.
HOW TO DO IT, THAT'S WHEN WE GET IN TO START THE AUDIT, WE'LL LOOK AT WHAT RESOURCES WE HAVE, AND IF WE NEED TO GET SOMEONE FROM THE OUTSIDE EXPERTISE, WE CONTRACT FOR THAT TO GET ASSISTANCE.
>> BECAUSE I MEAN, I SEE THIS BEING A VERY SPECIALTY TYPE THING, WHICH I HAVE A FEELING YOU WILL HAVE ANYBODY IN YOUR DEPARTMENT THAT DOES IT.
>> MY SUGGESTION IS, MAYBE TO TOUCH BASE WITH THE CITY MANAGER OR [INAUDIBLE].
WHILE I UNDERSTAND THIS WHOLE THING GOING DOWN THAT WAY, I DON'T NECESSARILY THINK IT'S A GOOD USE OF RESOURCES IN HAVING OUR AUDITOR DO THESE METRICS, BECAUSE I WOULD HOPE THAT YOU, IF YOU WERE DOING THIS AT CITY HALL, WOULD COME BACK AND SAY, THIS IS HOW WE'RE DOING THIS AND YOU WOULD CHECK HIS WORK, NOT NECESSARILY DO THE WORK. DOES THAT MAKE SENSE?
>> WELL, I WOULD HAVE TO [OVERLAPPING].
>> I KNOW ABOUT MAKING YOUR BOSSES HAPPY. I GET THAT.
BUT I JUST THINK SOMETIMES YOU MAY NEED TO PUSH BACK AND GO, NOW DIG A LITTLE MORE AND SAY, WHY DO YOU WANT ME TO DO THIS AND WHAT ARE YOU TRYING TO ACCOMPLISH? BECAUSE I THINK 1,000 HOURS TO THIS IS NOT WARRANTED, A.
B, IT'S PROBABLY NOT UNDER YOUR SPECIALTY, WHICH MEANS YOU'RE GOING TO HAVE TO GO OUT AND FIND SOMEBODY, AND IF WE HAVE THAT'S ALREADY BEING DONE, THEN HOW DO YOU COMPLIMENT WHAT'S BEING DONE INSTEAD OF DOING A WHOLE NEW PROCESS?
>> WELL THAT WOULD BE A COMBINATION OF TWO THINGS, AND WE'VE HAD TO DO OTHER THINGS, IS THAT WE'RE THE ONLY INDEPENDENT OBJECTIVE ENTITY OUTSIDE THE CITY MANAGER'S OFFICE TO BEAR THE REVIEW SOMETHING.
IT GIVES YOU SOME ASSURANCE [OVERLAPPING].
>> THE WORK, DON'T DO THE WORK.
>> WE COULD BE LOOKING AT THAT WORK OR IF WE DON'T FEEL LIKE WE CAN PLACE RELIANCE ON THEIR WORK, THEN WE WOULD HAVE TO RE PERFORM THE WORK. [OVERLAPPING].
>> BECAUSE I GET [INAUDIBLE], WHICH YOU'VE ALLOCATED 1,000 HOURS, WHICH SEEMS MORE APPROPRIATE.
I GET THAT YOU'RE THE OBJECTIVE, BUT I DON'T WANT TO BE INEFFICIENT.
THAT'S WHY I'M SAYING, YOU CHECK HIS WORK.
HE DOES IT, HE BRINGS IT TO YOU AND YOU CHECK IT, INSTEAD OF YOU DOING IT.
>> I MEAN, THAT WOULD BE [OVERLAPPING].
>> THAT WOULD BE OPTIMAL, YES. BUT I CAN'T GUARANTEE THAT BECAUSE [OVERLAPPING].
>> WELL, I'M SURE THAT YOU'RE NOT ALLOCATING 1,000 HOURS TO THIS, BECAUSE I DO THINK THAT'S [OVERLAPPING]
>> THAT'S PART OF THE PROCESS HERE, IS THAT WE'RE PUTTING THE TOPIC OUT, AND THEN IF YOU DON'T THINK IT SHOULD BE THERE, WE CAN REMOVE IT FROM THE PLAN, OR THE NEXT STEP WOULD BE WHEN WE [OVERLAPPING].
I'M HOPING THAT YOU'RE WORKING WITH THE CITY MANAGER'S OFFICE TO FIGHT BECAUSE SOME OF THESE ARE NOT [OVERLAPPING].
>> OUR FIRST STEP IN OUR PLANNING PROCESS, IS THERE ANY OTHER CONSULTANT REPORTS OR ANY OTHER STUDIES BEEN DONE, AND THEN WE TRY TO LEVERAGE THAT AS MAXIMUM [INAUDIBLE].
>> ANYBODY ELSE? I THINK IT'S JUST THREE OF US LEFT HERE. THREE OF US.
NO, I MEAN, I THINK THE ASSUMPTION, AT LEAST I MADE, WHEN I MADE THAT REQUEST FOR THE SPACE AUDIT, IS EXACTLY WHAT WAS REPRESENTED.
IF THERE'S SOME OTHER PROCESS ALREADY HAPPENING IN THE CITY, YOU ARE SUPPLEMENTING THAT.
[01:25:01]
YOU'RE NOT RECREATING THE WHEEL.IF THE CITY MANAGER, HOPEFULLY, SHE'S GOING TO BE DOING A SPACE AUDIT AND REALLOCATING OFFICE SPACE FOR PEOPLE SO WE CAN BE MORE EFFICIENT, YOU CAN PICK UP WHERE SHE STARTS AND NOT START FROM THE BEGINNING.
THAT WOULD BE MY ASSUMPTION ON ALL OF THESE, REALLY.
>> YES. YOU CHECK AND MAKE SURE THAT IT'S [INAUDIBLE] DOES.
>> YEAH. YOU'RE NOT RECREATING THE WHEEL.
>> YOU LOOK AT PROCESSES AND PROCEDURES TO MAKE SURE THAT IT'S BEING FOLLOWED BECAUSE YOU ARE THE OBJECTIVE.
YOU DON'T DO THE WORK, BUT YOU UPGRADE THE WORK.
>> THIS WILL BE UP FOR APPROVAL ON WEDNESDAY, RIGHT?
>> OCTOBER 23RD. THANK YOU FOR THAT.
NO OTHER QUESTIONS. WE WILL MOVE ON.
NOW WE ARE ON THE BRIEFING MEMORANDUMS. WE HAVE GOT THE INSPECTOR GENERAL DIVISION QUARTERLY REPORT.
ARE THERE ANY HIGHLIGHTS WE SHOULD BE AWARE OF IN THIS FROM OUR INSPECTOR GENERAL? WELCOME.
>> GOOD AFTERNOON, MR. CHAIRMAN.
I WAS TOLD THAT YOU GUYS MIGHT WANT ME HERE IF YOU HAD ANY QUESTIONS.
IS THERE ANYTHING THAT YOU WANTED ME TO COVER SPECIFICALLY, OR WOULD IT BE OKAY TO DO LATER FINDINGS ON THE DAL TECH REVIEW?
>> COLLEAGUES? NO. I'LL DEFER TO YOU ON THAT. GO AHEAD.
>> THANK YOU VERY MUCH. WE CONDUCTED A REVIEW THAT WE FINISHED ON DECEMBER 14TH OF LAST YEAR, AND IT WAS A REVIEW OVER DAL TECH AND SOME OF THE SUBCONTRACTORS.
I THINK I COULD KEEP THESE HIGH LEVEL REMARKS TO ABOUT THREE OR FOUR MINUTES IF THAT'S OKAY.
IT WAS A REVIEW SCOPE, WAS FROM FEBRUARY 1ST OF '22 TO DECEMBER 1ST OF '23.
IT WAS FOR PROFESSIONAL ENGINEERING SERVICES.
DAL TECH WAS THE CIVIL ENGINEERING AND SURVEYING FIRM.
THE CONTRACT THAT THEY WORKED ON WAS NOT TO EXCEED $10.6 MILLION BASED ON AN ESTIMATE OF 800 PLANS PER YEAR.
ONE OF THE SUBCONTRACTORS THEY HIRED WAS JENSEN HUGHES.
DURING THAT REVIEW, WE FOUND THAT DAL TECH'S MONTHLY INVOICES DID NOT CONTAIN THE CORRECT EMPLOYEE TITLES BASED ON LICENSES AND QUALIFICATIONS AND DUTIES, AND THEY DID NOT CONTAIN DETAILED TASK DESCRIPTIONS AS REQUIRED BY THE CONTRACT.
THE CITY WAS BILLED AT DIFFERENT RATES.
DAL TECH'S CLERICAL TASKS WERE CHARGED AT A ENGINEERING ASSISTANT RATE RATHER THAN THE CLERICAL RATE, WHICH ADDED UP TO $62,275, AND JENSEN HUGHES'S PLAN REVIEWS WERE CHARGED AT A FIRE PROTECTION ENGINEER RATE INSTEAD OF AN ENGINEERING ASSISTANT RATE, WHICH ADDED ANOTHER $50,302 FOR A GRAND TOTAL OF 116,577.
WE MADE SOME RECOMMENDATIONS ON THE REVIEW.
MANAGEMENT AGREED WITH THE RECOMMENDATIONS THAT WE REVIEWED.
THERE WERE SOME FEE SCHEDULES WERE IN WRITING, BUT I THINK THE CORE PROBLEM WAS ESSENTIALLY THE FAILURE TO DEFINE JOB TITLES AND DUTIES IN THE CONTRACT.
I SENT THE GPFM A COPY OF THE REPORT AND ALL THE EXHIBITS, THE CLERICAL DUTIES THAT WERE CHARGED AT A HIGHER RATE OR ON PAGE 5, THE PLAN REVIEWS THAT WERE CHARGED AT AN ENGINEERING RATE AS OPPOSED TO AN ENGINEERING ASSISTANT RATE IS ON PAGE 6.
WHEN WE SAID THAT WE COULD NOT SUPPORT COSTS, WE'RE NOT SAYING THAT THEY DIDN'T WORK THE HOURS.
WHAT WE ARE SAYING IS WE CAN'T VERIFY HOURS WORKED ON PROJECT MANAGEMENT WHEN THEY DIDN'T INCLUDE THE DETAILS THAT ARE REQUIRED BY THE CONTRACT.
WE SAW SOME ANOMALIES FROM MARCH OF '22 TO MARCH OF '23.
PROJECT MANAGEMENT HOURS SKYROCKETED 394%, WHICH IS AN ANOMALY.
THEN FROM MAY OF '23 TO SEPTEMBER OF '23, THE HOURS THAT DAL TECH RECEIVED DROPPED ALMOST 95%, BUT THEIR PROJECT MANAGEMENT HOURS ONLY DROPPED 21%.
WINDING IT UP, OUR RECOMMENDATIONS WERE TO AMEND THE CURRENT DSD CONTRACT TO REQUIRE ITEMIZED INVOICES,
[01:30:02]
NOT MERELY DETAILED DESCRIPTIONS.AS THE CONTRACT CURRENTLY READS, AND ALL FUTURE CONTRACTS REQUIRE ITEMIZED INVOICES, NUMBER 2 DEVELOPED STANDARD OPERATING PROCEDURES ON HOW TO PROPERLY REVIEW INVOICES, AND NUMBER 3, DSD REQUEST SUPPORTING DOCUMENTATION, TIME SHEETS THAT INCLUDE THE REQUISITE DETAILS AS REQUIRED BY THE CONTRACT.
THAT WOULD BE A HIGH LEVEL REVIEW OF THE DAL TECH REVIEW THAT WE FINISHED. THANK YOU, SIR.
>> THANK YOU. COLLEAGUES, QUESTIONS.
I'M NOT SEEING ANY. IN THE INTEREST OF TIME, WE'RE GOING TO LOSE QUORUM IN A MINUTE HERE.
I'M GOING TO KEEP MOVING ON. THANK YOU, SIR.
>> NEXT. ANY QUESTIONS ON MEMO ITEM H? I'M NOT SEEING ANY.
ON THE COTTON BOWL ITEM, THE SCOPE OF WORK CONTRACT AWARD.
THIS WAS ONE THAT WE GOT THE MEMO, IT CAME OUT THE NIGHT BEFORE THE COUNCIL AGENDA WHEN WE VOTED ON THIS ITEM.
I WANT TO JUST ASK IF WE HAVE ANYBODY FROM PARKS HERE.
WELL, WE'LL PUT THAT BACK ON THE AGENDA NEXT MONTH.
ANY QUESTIONS ABOUT ITEMS J, K, L OR M? COLLEAGUES? WITH THAT BEING THE END, WE WILL NOW ADJOURN THE MEETING OF THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.