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[00:00:03]

.

[Council Government Performance & Financial Management Committee on November 7, 2024.]

YEAH.

OKAY.

IT IS 2:16 PM AND I'M CALLING THIS MEETING OF THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE TO ORDER.

THANK YOU EVERYBODY FOR BEING HERE.

JUST A COUPLE OF HOUSEKEEPING ITEMS BEFORE WE MOVE ON TO THE VOTING AGENDA.

UM, I WANNA GIVE EVERYBODY HEADS UP ON HOW WE'RE TAKING THE AGENDA TODAY.

WE'RE GONNA LOSE SOME KEY PERSONNEL FOR ITEM H, NO, ITEM L, THE CLOSED SESSION ITEM.

SO WE ARE GONNA IMMEDIATELY BREAK INTO CLOSED SESSION HERE IN A COUPLE OF MINUTES TO TALK ABOUT THE BULLINGTON TRUCK TERMINAL.

I'LL READ THAT OFF IN A MINUTE BEFORE WE BREAK FOR THAT, UM, WE HAVE TWO CORRECTIONS ON TODAY'S GPFM AGENDA.

AGENDA ITEM C, WHICH IS LISTED AS THE 2024 EXTERNAL AUDIT PLANNING MEETING IS A DUPLICATE OF AGENDA ITEM A.

UM, THE MATTER WILL BE HEARD, UM, WHEN WE CONSIDER AGENDA ITEM A, UM, WHICH WE ARE GONNA ACTUALLY DO AFTER WE'RE GONNA, SO STEPPING BACK, WE'RE GONNA DO THE TRUCK TERMINAL EXEC SESSION, WHICH EVERYBODY'S GONNA GET KICKED OUTTA HERE.

SORRY.

YOU'LL COME BACK IN.

WE'RE GONNA HEAR THE SHORT TERM RENTALS ITEM.

THEN WE'LL MOVE ON TO AGENDA ITEM A.

THE OTHER INCORRECT ITEM IS ITEM D, WHICH IS THE REPORT OF INDEPENDENT AUDITOR IN THE CITY OF DALLAS, POLICE AND FIRE PENSION AND EMPLOYEES RETIREMENT FUND.

THAT SHOULD NOT BE ON HERE.

THAT WAS OBVIOUSLY JUST HEARD FOR THOSE OF YOU THAT WERE IN HERE.

LASTLY, BEFORE WE BREAK FOR EXECUTIVE SESSION, I WANT TO TURN IT OVER TO JACK IRELAND FOR A MOMENT TO TALK ABOUT, UM, BRAG ABOUT STAFF AND ABOUT, UH, THE CERTIFICATE, CERTIFICATE OF ACHIEVEMENT IN FINANCIAL REPORTING THAT WE WERE JUST AWARDED WITH JACK.

THANK YOU, CHAIRMAN WEST.

UH, AND WE DO WANNA JUST RECOGNIZE, UH, STAFF IN THE CITY CONTROLLER'S OFFICE.

AND SHERRY, YOU MAY BE THE ONLY PERSON HERE WITH US, OR, OH, THERE'S LANCE AND JENNIFER YOUNGIN.

COME ON UP HERE FOR A SECOND.

WE JUST WANTED TO RECOGNIZE, UH, THE STAFF IN THE CITY CONTROLLER'S OFFICE AND THE FINANCIAL REPORTING TEAM.

UH, THEY'RE THE STAFF THAT COMPLETE THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORTS, AND THEY HAVE BEEN RECOGNIZED BY, UH, GFOA AGAIN, FOR, UH, THE WORK THEY DO ON THE REPORT, UH, AND, AND BEEN RECOGNIZED FOR, UH, THE LAST 18 CONSECUTIVE YEARS.

SO, JUST TO SHERRY AND LANCE AND JENNIFER, AND HOPEFULLY YOUR TEAMS THAT ARE LISTENING.

UH, THANK Y'ALL FOR THE GOOD WORK Y'ALL DO, UH, IN REPRESENTING THE CITY.

ALRIGHT, COLLEAGUES, UH, AT THIS TIME I AM ASKING FOR APPROVAL OF THE OCTOBER 22ND, 2024 GPFM COMMITTEE MEETING.

MINUTES SECOND, THE MOTION, AND A SECOND.

ALL THOSE IN FAVOR SAY AYE.

ANY OPPOSED? MOTION CARRIES.

IT IS 2:19 PM ON NOVEMBER 7TH, 2024.

THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE WILL NOW GO INTO CLOSED SESSION UNDER SECTIONS 5 5 1 0.072 AND 5 5 1 0.07, ONE OF THE TEXAS OPEN MEETINGS ACT ON THE FOLLOWING MATTER DESCRIBED ON TODAY'S AGENDA.

AGENDA ITEM L

[00:27:09]

WE'RE

[00:27:10]

JUST

[00:27:10]

GETTING,

[00:27:10]

UH,

[00:27:10]

TECHNOLOGY GOING AND THEN WE'LL GET STARTED.

THE GOVERNMENT PERFORMANCE AND FINANCIAL MANAGEMENT COMMITTEE MEETING HAS COMPLETED ITS CLOSED SESSION UNDER SECTIONS FIF 5 51 0.072, AND 5 51 0.07, ONE OF THE TEXAS OPEN MEETINGS ACT.

AND AT 2:57 PM ON NOVEMBER 7TH, 2024, WE HAVE RETURNED TO OPEN SESSION.

UM, AT THIS POINT, COLLEAGUES, WE ARE TAKING ITEM B, WHICH IS THE SHORT UPDATE ON SHORT-TERM RENTALS.

UM, ITEM NEXT AND I HAD A COUPLE OF GO ASK ME WHY ARE WE DOING THIS ITEM HERE? UM, THERE IS A, YOU KNOW, THIS IS A CODE RELATED ITEM BECAUSE OF THE WAY, UM, THE ORDINANCE, THE ORDINANCE IS FACILITATED BY CODE.

UM, BUT THERE IS A HUGE FINANCIAL IMPACT TO THE CITY ON BOTH THE EXPENSE SIDE OF THIS, UH, FOR, FOR US OUT OF OUR GENERAL FUND, AND THEN ALSO AN OPPORTUNITY UNDER THE HOTEL OCCUPANCY TAXES ON THE OTHER SIDE OF THE HOUSE.

SO, UM, INVITED SOME GUESTS HERE, UM, TO TALK WITH US, WHICH WE'LL GET TO, UM, TO TALK WITH US ABOUT THE, THE HOT SIDE OF THE HOUSE.

BUT I AM GONNA GO AHEAD AND TURN IT OVER TO CITY STAFF FIRST TO, UH, TALK ABOUT HOW THE REGULATION'S GOING AND, UM, WHERE WE'RE AT WITH THAT, TAKE IT AWAY.

GOOD AFTERNOON, CHAIRMAN WEST MEMBERS OF THE COMMITTEE.

CEDRIC SATA, SYSTEM DIRECTOR OF DEPARTMENT OF CO COMPLIANCE SERVICES.

I'LL ALLOW EVERYONE ELSE TO INTRODUCE THEMSELVES.

GOOD AFTERNOON.

I'M CRAIG DIVAS, PRESIDENT, CEO OF VISIT DALLAS.

AND HELLO, MY NAME IS MICHAEL RODOWSKI.

I'M VP OF RESEARCH AND INSIGHTS AT VISTA, DALLAS.

MONICA PAUL, EXECUTIVE DIRECTOR OF THE DALLAS SPORTS COMMISSION.

CHRIS CHRISTIAN, CO COMPLIANCE DIRECTOR, SHERRY KOWALSKI, CITY CONTROLLER.

GOOD AFTERNOON AGAIN, AND THANK YOU FOR HAVING US.

OUR PURPOSE HERE TODAY BEFORE THE COMMITTEE IS TO PRESENT ON THE FINANCIAL IMPACT OF THE SHORT-TERM RENTAL PROGRAM.

THAT BEING SAID, NEXT SLIDE PLEASE.

THIS IS OUR TABLE OF CONTENTS HIGHLIGHTING THE TOPICS THAT WE'LL BE COVERING TODAY.

NEXT SLIDE.

TODAY WE WILL SHARE AN UPDATE ON THE STATUS OF DALLAS'S SHORT-TERM RENTAL, PRO RENTAL REGISTRATION AND ENFORCEMENT PROGRAM.

THIS WILL INCLUDE INSIGHTS ON THE NUMBER OF ACTIVE SHORT-TERM RENTAL PROPERTIES, AND ALSO INCLUDING INITIAL AND CONTINUING COST, THE IMPACT OF THE CURRENT LEGAL

[00:30:01]

INJUNCTION ON THE PROGRAM OPERATIONS, OUR FEE RECOVERY STRUCTURE, AS WELL AS THE COLLECTION OF HIGH TAXES NEXT FLOOD.

THANK YOU.

THIS DIAGRAM ILLUSTRATES THE CITYWIDE COUNT OF ACTIVE SHORT-TERM RENTALS IDENTIFIED THROUGH THE GOV OS SOFTWARE SYSTEM, UH, WITHIN THE DALLAS CONTROLLER'S OFFICE AMOUNTING TO 3,495 ACTIVE SHORT TERM RENTAL PROPERTIES AS OF SEPTEMBER 30TH, 2024.

NEXT SLIDE, PLEASE.

THE INITIAL INVESTMENT TO STAND UP THE SHORTTERM RENTAL REGISTRATION AND ENFORCEMENT PROGRAM WAS $1.375 MILLION.

THIS INCLUDED ESSENTIAL INFRASTRUCTURAL COST SUCH AS SOFTWARE STAFFING OF NINE 10 TEAM MEMBERS, TRAINING VEHICLES, UNIFORMS, EQUIPMENT, AND OTHER SUPPLEMENTARY OPERATIONAL COSTS.

NEXT SLIDE, PLEASE.

WITH RESPECT TO ONGOING ANNUAL COSTS, THIS LAB PRESENTS THE PROJECTED ANNUAL COST FOR OPERATING THE SHORT TERM RENTAL REGISTRATION AND ENFORCEMENT UNIT YEAR OVER YEAR, EXTENDING THROUGH FISCAL YEAR 2027.

THESE PROJECTIONS ACCOUNT FOR RECURRING OPERATIONAL EXPENSES THAT INCLUDE PERSON, PERSONNEL, TECHNOLOGY, AND ADMINISTRATIVE OVERHEAD.

THE EXPENDITURE GROWTH RATE FROM FY 25 TO 26 IS APPROXIMATELY 3.5300000000000002% AND 3.66% IN FY 26 TO 27 RESPECTIVELY.

OUR BUDGETARY FORECAST ARE ADJUSTED ANNUALLY TO REFLECT INFLATIONARY TO, UH, REFLECT, I'M SORRY, INFLATION AND PROJECTED INCREASES IN WAGES.

NEXT SLIDE.

STAFF.

THE STAFF FOR THE SHORT-TERM RENTAL PROGRAM CONSIST OF NINE FTES ARE FULL-TIME EQUIVALENTS AND THE CITY ALLOCATED FUNDING FOR THAT, INCLUDING ONE SUPERVISOR, ONE ADMINISTRATIVE SPECIALIST, AND SEVEN CODE INSPECTORS.

DURING THE PERIOD OF THE LEGAL INJUNCTION, THESE STAFF MEMBERS WERE REASSIGNED TO SOME OF OUR OTHER HIGH PRIORITY RENTAL UNITS IN OUR PORTFOLIO, SUCH AS MULTIFAMILY RENTAL REGISTRATION, SINGLE FAMILY RENTAL REGISTRATION, BOARDING HOME FACILITIES, AND OUR CONSUMER PROTECTION PROGRAM AS WELL.

COLLECTIVELY, THIS SMALL UNIT CONDUCTED 13,575 INSPECTIONS CUMULATIVELY IN FY 2324, SIGNIFICANTLY CONTRIBUTING TO THE HEALTH, SAFETY AND OVERALL QUALITY OF LIFE FOR THE VALUED RESIDENTS OF DALLAS.

NEXT SLIDE.

OUR FEE STUDY INITIALLY PROJECTED $745,000 IN REVENUE, ASSUMING FULL COMPLIANCE WITH THE PROJECTED 3000 SHORT-TERM RENTAL UNITS, REGISTERING AND PAYING THE REQUIRED FEES.

HOWEVER, DRAWING FROM SIMILAR PROGRAM ROLLOUTS, WE EXPECTED INITIAL REGISTRATION RATE OF APPROXIMATELY 42 TO 50% ADJUSTING OUR REVENUE FORECAST ACCORDINGLY.

THIS MORE CONSERVATIVE ESTIMATE REFLECTS THE EXPECTED UPTAKE AS THE PROGRAM FINDS ITS FOOTING AND GAINS TRACTION.

ADDITIONALLY, REVENUE WILL VARY BASED ON THE LAUNCH DATE WITHIN THE FISCAL YEAR AFFECTING EARLY FEE COLLECTIONS.

THIS ADJUSTMENT ENSURES A REALISTIC REVENUE OUTLOOK AS WE LOOK TOWARD MAXIMIZING CR COMPLIANCE OVER TIME.

NEXT SLIDE, PLEASE.

I WILL NOW YIELD TO MY COLLEAGUES WITH THE CONTROLLER'S OFFICE, UM, SHERRY KALPE, CITY CONTROLLER.

AS YOU'LL NOTE ON THE NEXT SLIDE, THE TAXES COLLECTED FOR THE CURRENT, UM, FISCAL YEAR ESTIMATED HAVE DECREASED BY ABOUT 25%.

WE DO HAVE AN INCREASE IN THE NUMBER OF SHORT TERM RENTALS AND THE BOTTOM GRAPH BETWEEN 32 50 AND 34 95.

AND I KNOW WE'VE HAD ONGOING QUESTIONS AND WE ARE CONTINUING TO SEND LETTERS AND NOTIFY SUSPECTED SHORT TERM RENTALS THAT WE COME ACROSS IN THE GOBOS SOFTWARE.

WE BELIEVE THAT SOME OF THE DECREASES IN 2023 WHEN THE, UH, ORDINANCES, THE BAN THEM WAS FIRST ENACTED.

A LOT OF PEOPLE SOLD AND, AND THE REVENUE DECREASE.

WE'VE SEEN AN UPTICK SINCE THEN, BUT WE ACTIVELY MONITOR AS YOU KNOW, AND ACTUALLY LOOK FOR WAYS TO, UM, COLLECT FROM FOLKS THAT AREN'T BEING HONEST WITH US ABOUT THE BUSINESS THEY'RE OPERATING.

SO THAT'S THE UPDATE ON, UH, THE TAXES.

THANK YOU, SHERRY.

NEXT SLIDE, PLEASE.

[00:35:02]

I WILL NOW YIELD TO MY COLLEAGUE CRAIG DAVIS.

THANK YOU SO MUCH, GER.

I'M GONNA SET THIS UP AND I'M GOING TO, UM, YIELD MY TIME TO MICHAEL RODOWSKI WHO HAD SET THESE UP, BUT I WANNA LET YOU KNOW THAT THE SOURCE FOR WHERE THIS INFORMATION COMES FROM AND WHERE WE ACTUALLY GET OUR FORECASTING UH, SERVICES FROM IS A, IS A BODY CALLED TOURISM ECONOMICS.

WE SHARE THAT DATA WITH OUR COLLEAGUES AT CES WITH ROSE AND HER TEAM.

UM, THEY ARE HYPER ACCURATE.

UM, WE DO A QUARTERLY FORECAST AND I WANT TO, WE'RE GOING TO, WE SPECIFIED 2000 OR 2026 SPECIFICALLY BECAUSE OF FIFA.

UM, ONE THING I WANT TO MAKE CERTAIN THAT EVERYBODY KNOWS IS THAT THIS IS A MOVING TARGET.

UM, AND I CAN HAVE MONICA COMMENT ON THIS, BUT FIFA, WE UNCOVER SOMETHING NEW ALMOST EVERY MONTH WITH FIFA.

UM, THEY ARE CONTINUING TO CONCENTRATE THEIR, UH, THEIR OPERATIONS AND THEIR FOCUS ON THE DALLAS-FORT WORTH AREA.

AND AS A RESULT, WHAT WE THINK TODAY, UM, MAY NOT BE COMPLETELY ACCURATE.

IT WON'T GET ANY WORSE, BUT IT MAY GET VERY, VERY MUCH BETTER.

SO MAYBE WITH THAT, I'LL SET IT UP AND, AND TALK TO, OR, OR HAVE, UH, MONICA COMMENT BEFORE MICHAEL TALKS ABOUT THE EFFECT OF WHAT 2026 AND FIFA WILL BRING.

YEAH, SO WE, FROM A WORLD CUP STANDPOINT, WE'RE STILL CONTINUING TO GET, UH, INFORMATION.

WE'RE STILL CONTINUING TO FINALIZE WHAT OUR FOOTPRINT IS AND WHEN I MEAN THAT RIGHT NOW WE HAVE FOUR BASE CAMPS.

THERE'S A POSSIBILITY HERE IN THE VERY NEAR FUTURE THAT WE EXPAND TO SEVEN BASE CAMPS, UH, AS WELL AS IDENTIFYING WHAT, UH, FIFA STAFF WILL MEAN IN TERMS OF THE MAIN OPERATING CENTER WHERE THEY'RE LOOKING TO, UH, BRING THEIR STAFF HERE TO RUN THE MAJORITY OF THE WORLD CUP, UH, RIGHT HERE OUT OF DALLAS.

UM, A LOT WILL TAKE SHAPE HERE OVER THE NEXT YEAR, AS WE KNOW THE GROUP STAGE MATCHES.

WE'RE JUST GETTING EARLY INDICATIONS NOW OF WHAT TEAMS, UH, ARE ALREADY LOOKING TO DO SITE VISITS, UH, TO PREPARE TO POSSIBLE BE BASE BASE CAMPS IN 2026.

AND THE TEAMS HAVE A, A VERY BIG, UM, UH, SWAY POSSIBLY ON WHAT WE COULD BE LOOKING FOR IN TERMS OF, UH, THE, THE FANS COME AND SPECTATORS COMING ALONG WITH THEM.

GREAT.

SO TO TAKE THAT TO KINDA LOOK WHAT WE'RE LOOKING AT WITH THE, WITH THE REVENUE FIGURES AND THE IMPACT, IT'S OBVIOUSLY THE IMPACT FROM WHAT WE'RE GONNA BE SPREAD OVER A THREE MONTH PERIOD FROM MAY THROUGH JULY.

SO THIS SLIDE IS REALLY SHOWING THE DIFFERENCE OF WHAT WE CAN EXPECT IN GROWTH FROM THIS PAST MAY TO JULY THROUGH AND WHAT WE'RE GONNA SEE IN 2026.

BUT AS YOU'LL SEE IN, WE'RE THEY'RE FORECASTING ABOUT A $20 MILLION INCREASE IN MAY, AND THEN ABOUT A $70 MILLION INCREASE IN BOTH JUNE AND JULY.

UH, WHEN YOU KIND OF PULL THESE ALL TOGETHER, IT REPRESENTS $159 MILLION ADDITIONALLY IN ROOM REVENUES.

AND JUST TO CLARIFY, ROOM REVENUES, THAT'S ESSENTIALLY THE GUESTS PAID THE AMOUNT OF MONEY PAID BY THE GUESTS DIRECTLY TO THE HOTEL.

IT DOES NOT INCLUDE ANY ANCILLARY OR TAX REVENUES AS PART OF THAT.

IT'S JUST THE ACTUAL RUMOR ITSELF.

AND NEXT SLIDE PLEASE.

AND THEN WHEN WE LOOK AT THAT REALLY JUST KIND OF WHAT DOES THAT MEAN INTO, YOU KNOW, POTENTIAL OCCUPANCY TAX, UH, GROWTH, COMPARING THE TWO TIME PERIODS.

SO LOOKING AT THAT FORECASTED LEVEL OF HOTEL REVENUES IN 26, WE CAN IDENTIFY UP WHERE THE CITY, UH, THE 7% HOT TAX TO BE, ABOUT A $10 MILLION INCREASE TO $31.7 MILLION, AS WELL AS THEN THE, UH, 2% ADDITIONAL, UH, GENERATING ABOUT 9 MILLION, WHICH IS AN INCREASE OF THREE.

THAT TOTAL IS TO BE LIMITED OVER $13 MILLION IN TAX REVENUES, UH, COMPARED TO 2024 AT THE SAME TIME PERIOD.

BUT WE WANTED TO ISOLATE THAT SPECIFICALLY FOR THE, IN TERMS OF THIS DISCUSSION, UM, WITH OBVIOUSLY A BIG BUMP POTENTIALLY HAPPENING IN 2026 FOR THE CITY OF DALLAS.

DID YOU HAVE SOMETHING ELSE? NO.

ALRIGHT.

UM, ANY, ANYTHING ELSE FROM STAFF? YES, SIR.

IN CLOSING LA LAST SLIDE IN CLOSINGS, THE DALLAS SHORT TERM RENTAL PROGRAM REMAINS UNDER TEMPORARY LEGAL INJUNCTION, HALTING HALL, REGISTRATION AND ENFORCEMENT UNDER CHAPTER 42 B.

THAT CONCLUDES THE PRESENTATION.

I'LL NOW OPEN THE FLOOR FOR QUESTIONS.

YEAH.

AND I'M GONNA, UH, WE'LL START WITH VICE CHAIR BLACKMAN HERE IN JUST A SECOND.

UM, I WANTED TO JUST GIVE A LITTLE CLARIFICATION 'CAUSE I WAS REMINDED THAT THIS HAS BEEN BRIEFED TO TWO OTHER COMMITTEES, WHICH I WASN'T AWARE THAT HAD GONE TO, TO ONE OF THEM.

BUT THE FOCUS FOR THIS ONE REALLY WAS ON THE REVENUE PIECE BECAUSE THIS, THIS COMMITTEE IS THE GOVERNMENT PERFORMANCE AND THE FINANCIAL MANAGEMENT PIECE FOR THE CITY.

BUT AS PART OF THAT DISCUSSION, YOU ALSO NEED TO TALK ABOUT THE ONGOING COST AND ABILITY TO ENFORCE AN ORDINANCE THAT, THAT COUNCIL PASSED.

SO, UM, THAT'S WHY I'M VERY THANKFUL TO HAVE OUR, OUR FRIENDS IN THE HOTEL OCCUPANCY TAX WORLD, UH, HERE TO, TO SHED LIGHT ON ANY QUESTIONS WE MIGHT HAVE.

UH, VICE CHAIR.

UM, YEAH, THIS IS MY SECOND TIME TO SEE THIS AND I GUESS, I THINK WE ASKED FOR POLICE DATA THE LAST TIME IN QUALITY OF LIFE.

HAS THAT BEEN UPDATED? THANK YOU FOR THE QUESTION.

COUNCIL MEMBER.

I BELIEVE

[00:40:01]

IT'S BEEN UPDATED AND WILL BE PROVIDED IN A FRIDAY MEMO THIS WEEK.

OKAY.

BRITTA IS HERE TODAY AND I THINK SHE'S ABLE TO SPEAK TO SOME OF THOSE DATA POINTS IF YOU HAVE QUESTIONS TODAY.

YEAH.

'CAUSE WE TALKED ABOUT, BASICALLY, IS IT STILL, WE'RE WE'RE HEARING ADO I MEAN, WE HEARD ANECDOTAL IN THE DISCUSSION, BUT WE WANTED REALLY TO UNDERSTAND WHAT THE CALLS MEANT AND BECAUSE ANYWAY, YOU, YOU, YOU WERE AT THAT MEETING AND I THINK Y'ALL HEARD THE QUESTIONS.

YES.

THANK YOU.

UH, BRITA AND OREK, CHIEF DATA OFFICER.

SO WE'VE GOT, WE'VE PULLED THOSE NUMBERS.

WE, WHAT WE WERE ASKED, AND THE QUESTION THAT WE RECEIVED WAS TO HAVE THE NUMBER OF CALLS ASSOCIATED WITH EACH ADDRESS.

SO THAT'S WHAT WE'RE PUTTING OUT IN A FRIDAY MEMO.

AND IF THERE ARE ADDITIONAL QUESTIONS, SOME PEOPLE HAVE WANTED ACTUAL ADDRESSES IN THEIR DISTRICTS.

SO WHAT WE ARE SEEING IS THAT 72% OF THESE PROPERTIES GENERATE NO CALLS, BUT WE DO SEE THAT THERE IS A SMALL PERCENTAGE JUST ABOUT 1% THAT ARE GENERATING 20 OR MORE AND ABOUT 2% THAT ARE GENERATING 10 OR MORE CALLS DURING THAT TIME PERIOD.

SO THAT'S WHAT WE'VE DONE.

WE'VE GOT THAT COMING OUT IN THE FRIDAY MEMO THIS WEEK AND CAN ANSWER ANY OTHER FOLLOW UP QUESTIONS.

OKAY.

DOES THAT RESPOND TO THAT? YES.

'CAUSE THAT WAS A QUESTION THAT WE ALL HAD AT THAT MEETING.

GREAT.

OKAY.

SO NOW IT'S ON THE PRESENTATION, THE STARTUP NUMBERS, THE 1.3 TO ONE POINT 0.4 MILLION.

HAVE WE SPENT ALL OF THAT? I MEAN, THAT WE HAVE, WE HAVE SPENT THAT, THAT CAN'T BE IT.

IT'S, IN OTHER WORDS, WE'RE STEPPED UP AND THAT IS THE NUMBER THAT WE HAVE SPENT.

WE CAN'T RECOUP ANY OF THAT MONEY.

THAT IS CORRECT.

SO HOWEVER IT RULES THAT COULD BE JUST MONEY DOWN, I'M NOT GONNA SAY THE, THE DRAIN, BUT DOWN THE DRAIN, AN INVESTMENT WELL SPENT.

YES, MA'AM.

WELL, OKAY.

BUT IF IT'S A INVESTMENT WELL SPENT ON WHAT? WELL, WE, WE TOOK ADVANTAGE OF THE TIME THAT WE HAD UNDER THE INJUNCTION TO THOROUGHLY TRAIN, UH, THESE, THESE INDIVIDUALS, UH, IN PREPAREDNESS FOR THE, YOU KNOW, INEVITABLE, UM, RELEASE OF THE INJUNCTION.

SO THE MOMENT THE INJUNCTION IS LIFTED, IF IT, IF IT SHOULD BE, UH, OKAY, THEY ARE READY, READY TO GO AND VERY WELL TRAINED.

AND WHAT IF, WHAT IS THE, IN THE MEANTIME, THEY'VE BEEN DEPLOYED TO OTHER AREAS OF CODE COMPLIANCE? YES.

YES, MA'AM.

THEY HAVE CONDUCTED 13,575 INSPECTIONS THAT WE HIGHLIGHTED IN THE PRESENTATION.

AND SO THEY, THEY HAVE BEEN WORKING IN OTHER RENTAL PROPERTY PROGRAMS PERFORMING.

SO THEY'RE NOT SITTING THERE? NO, MA'AM.

OKAY.

SO THE NINE PEOPLE HAVE DONE THE 13 INSPECT 1300 13,000 INSPECTIONS IN OTHER, IN OTHER AREAS.

SO THEY'RE, THEY'RE, THEY'RE ACTUALLY BEING UTILIZED BECAUSE MY QUESTION IS WHAT IF THIS, WHAT IF WE HAVE TO COME BACK AND RETOOL OUR ORDINANCE? IS THIS NIMBLE ENOUGH THE MONEY THAT WE HAVE SPENT TO THEN BE RETOOLED INTO DOING NEW ACTIONS? THANK YOU FOR THAT QUESTION.

COUNCIL MEMBER BLACKMAN? YES MA'AM.

WE WILL BE ABLE TO PIVOT AND ADDRESS CHANGES IN THE ORDINANCE, ANY AMENDMENTS THAT WE NEED TO MAKE AND SET UP THE REGISTRATION AND ENFORCEMENT PROGRAM, HOWEVER THE NEW ORDINANCE CALLS FOR.

OKAY.

AND THEN ON THE ONGOING ANNUAL COSTS, UM, I GUESS WE, UM, IT'S, IT'S LITTLE ALMOST, IT'S UNDER A MILLION, BUT OUR REVENUES ARE 365, UH, THOUSAND.

IS THAT CORRECT AT THIS TIME? GREAT QUESTION.

COUNCILWOMAN AT THIS TIME, NO REVENUE HAS BEEN RECOUPED WITH RESPECT TO THE SHORT-TERM RENTAL PROGRAM.

OKAY.

BUT WHEN WE DO BE ABLE TO REGISTER IT, THAT'S GONNA BE THE PROJECTED ONE, RIGHT? THAT IS CORRECT.

AND THAT, AND THAT IS BASED ON COUNCIL NORMAN JUST TO KNOW CURRENT ORDINANCE IT THAT PROJECTION ACCOUNTS FOR, UM, A LOWER PERCENTAGE THAN A HUNDRED PERCENT OF SDR OPERATORS ACTUALLY REGISTERING AS SOON AS WE LAUNCHED THE PROGRAM, WE BUILT IN SOME TIME TO COME INTO FULL COMPLIANCE.

AND SO THAT INITIAL PROJECTION REPRESENTS ABOUT 40% WITH THE TOTAL A HUNDRED PERCENT VALUE BEING CLOSER TO SEVEN OR 800,000.

OKAY.

BECAUSE I, WHAT I'M TRYING TO DO IS FIGURE OUT THE DELTA BETWEEN WHAT IS OUR ONGOING AND WHAT'S IT GONNA COST US TO, TO, BECAUSE I WOULD LIKE TO HAVE FULL COST RECOVERY.

THE, THE, THE WAY THE PROGRAM WAS SET UP BY THE ORDINANCE AND OUR FEES AND OUR FEE STUDY WAS TO BE FULL COST RECOVERY.

OKAY.

AND SO WHEN WE GET TO A HUNDRED PERCENT WITH OUR REGISTRATION FEES AND OUR IN, UH, REINSPECTION FEES, WE SHOULD BE AT A HUNDRED PERCENT COST RECOVERY.

OKAY.

UM, I THINK THAT'S IT ON MY END.

OH, ANOTHER QUESTION.

DO WE KNOW WHEN AND WHEN WE COULD GET WORD ON WHAT'S GONNA HAPPEN IN THE COURTS? HAS THERE BEEN ANY INDICATORS? I'M NOT SURE IF ANYONE FROM THE CITY ATTORNEY'S OFFICE IS PRESENT WHO CAN ADDRESS THAT QUESTION.

OKAY.

I CAN GET WITH THEM.

OKAY.

I CAN GET WITH THEM.

I JUST WONDER IF IT'S GONNA BE TOMORROW OR NEXT YEAR.

THANK YOU.

YEAH.

OKAY.

THANK YOU.

UM, JUST

[00:45:01]

HAD A COUPLE, COUPLE OF QUESTIONS RELATED TO THE, UM, HOTEL OCCUPANCY TAX.

HOW MUCH OF, OF THAT GOES TO THE ARTS COMMUNITY AT PRESENT? 12.5% AND IT IS GOING TO RISE OVER THE COURSE OF THE NEXT FEW YEARS TO REACH ITS MAXIMUM 15%.

OKAY.

AND, AND WHAT IS THAT FUNDING USED FOR? AGAIN, IN THE, IN THE ARTS COMMUNITY? I CAN'T SPEAK TO THAT.

UM, BUT IT IS WITHIN THE LEVEL USES OF HIGHS.

OKAY.

AND THEN WE EXPECT TO RAMP THAT UP, UM, HERE SOON.

OKAY.

THANK YOU.

THOSE, THOSE ARE ALL THE QUESTIONS I HAVE CHAIR MENDELSON.

THANK YOU.

UM, WELL, THIS IS THE FIRST TIME I'M SEEING THE PRESENTATION, SO I GUESS I'M ON THE WRONG COMMITTEES.

UM, WHAT HAS BEEN THE CHANGE IN THE NUMBER OF SHORT-TERM RENTALS OVER TIME? SO YOU'RE SAYING THAT THERE PRESENTLY ABOUT 3,500 UNITS, AND HOW HAS THAT CHANGED OVER THE LAST COUPLE YEARS? I CAN GET YOU, THANK YOU FOR THE QUESTION, COUNCIL MEMBER.

UM, I CAN GET YOU MORE DETAILED INFORMATION ON THAT.

IT GOES UP AND DOWN EVERY MONTH.

WE, WE DID A DETAILED STUDY OF THE REVENUE, BUT TO GIVE YOU A REALLY ACCURATE QUESTION ON THE NUMBERS, I NEED TO GET ADDITIONAL INFORMATION AND WE CAN PROVIDE THAT TO YOU.

AND IF YOU COULD SHOW US, UM, BOTH REGISTERED AND THEN IF YOU HAVE LIKE THE, THAT ERROR DNA NUMBER OVER TIME, UM, YES, WE HAVE THAT.

AND JUST TO, AS A POINT OF REFERENCE OR I THINK YOU'RE BELIEVING THAT'S ALSO COMPARABLE TO THE HOST COMPLIANCE NUMBER.

THAT'S FINE.

AND WHEN LOOKING AT THAT, I LOOKED AT THAT TODAY, A REPORT FROM APRIL, AND MOST OF THE RENTALS IN THERE HAVE NOT BEEN USED FOR OVER SIX MONTHS.

SO THEY WILL ALWAYS HAVE A HIGHER NUMBER FROM WHAT I'VE SEEN.

I'M NOT SURE ABOUT THE OTHER ONE YOU'RE REFERENCING, BUT WE WILL LOOK AT THAT AS WELL.

OKAY.

UM, SO THERE WAS A COMMENT MADE ABOUT, UM, SOME FOLKS WERE ASKING, I THINK GRETA WAS SAYING, UM, I'D LOVE TO ALSO SEE THE UNITS IN DISTRICT 12 ON THAT REPORT, UM, THAT ARE CALLING IN WITH THE 3 0 1 AND 9 1 1.

UM, IT KIND OF LOOKS LIKE A CROWN OVER THE CITY, UM, ACROSS DISTRICT 12, KIND OF HUGGING GEORGE BUSH THERE.

UM, SO I'M ASSUMING BECAUSE WE'RE TALKING ABOUT FIFA, THAT THAT THERE'S, UM, AN INTEREST IN HAVING FIFA FOLKS STAY IN SHORT TERM RENTALS.

AND IF THEY'RE STAFF AND THEY'RE GONNA RENT SOMETHING FOR 30 DAYS, I'D SAY THAT'S WONDERFUL.

WELCOME TO STAY.

OTHERWISE, I HOPE THEY FIND A HOTEL AND I THINK THEY CAN FIND A HOTEL IN DALLAS.

THAT'S ABSOLUTELY THE NUMBER ONE PLACE TO STAY.

BUT IF NOT, IF ALL OUR ROOMS ARE FULL, WE GOT A LOT OF OTHER CITIES WITH A LOT OF HOTELS AND WE DON'T HAVE TO BE USING OUR SHORT TERM RENTALS AND DISRUPTING OUR NEIGHBORS WHO ARE ALREADY GONNA HAVE IMPACTS FROM TRAFFIC AND OTHER THINGS.

IF YOU'RE COMING IN FOR FIFA, YOU'RE COMING IN FOR A PARTY AND IT'S GONNA BE A GREAT PARTY.

WE'RE GONNA BE THE BEST HOST IN THE ENTIRE WORLD, BUT THAT PARTY, I DON'T WANT IT NEXT TO MY HOUSE.

I CAN GUARANTEE YOU THAT.

AND THAT'S WHY IT BELONGS IN A HOTEL.

SO I UNDERSTAND WHY YOU'RE HERE.

WE WANNA BE WELCOMING IN EVERY POSSIBLE WAY EXCEPT FOR THE PARTY NEXT DOOR IN THE NEIGHBORHOOD.

SO I'M NOT, I'M NOT LOOKING FOR THAT.

BUT FOR 30 DAY RENTALS, I THINK THERE'S LOTS OF THEM AVAILABLE.

AND WE WOULD, WE WOULD DEFINITELY WELCOME THAT.

UM, YOU KNOW, I I, IT DOES, IT IS NOT LOST ON ME TO TALK ABOUT THE REVENUE THAT IS POSSIBLE TO BE GENERATED BY SHORT TERM RENTALS, BUT THAT ASSUMES EVERYTHING ELSE IS STATIC.

AND THE REALITY IS, IF WE OPEN UP OUR CITY TO SHORT TERM RENTALS, PEOPLE WILL CHOOSE NOT TO LIVE HERE LONG TERM BECAUSE THEY DON'T WANNA HAVE THAT KIND OF INTRUSION IN THEIR NEIGHBORHOODS.

AND THEY'LL CHOOSE NEIGHBORING CITIES WHERE THEY DON'T HAVE TO PUT UP WITH THAT.

NOW, I GET THAT MANY ON COUNCIL DON'T HAVE OTHER CITIES THAT ARE RIGHT NEXT TO THEM, BUT WE IN DISTRICT 12, WE ARE SURROUNDED BY OTHER CITIES.

I HAVE A SMALLER BORDER WITH DALLAS THAN I DO WITH PLANO OR CARROLLTON OR RICHARDSON.

AND IT'S VERY EASY TO PICK UP AND MOVE TO ONE OF THE OTHERS THAT HAVE A LOWER TAX RATE.

FRANKLY, BETTER STREETS POLICE COME QUICKER AND YOU START ADDING IN THINGS LIKE SOMEONE'S GONNA START BUILDING MULTIFAMILY NEXT TO YOU, OR YOU'RE GONNA HAVE SHORT TERM RENTALS ON YOUR STREET.

IT TOTALLY DIMINISHES YOUR QUALITY OF LIFE.

AND THAT'S WHY IT'S SO IMPORTANT THAT WE DO UPHOLD WHAT WAS PASSED AND HOPEFULLY THE, THE CASE WILL BE DEALT WITH APPROPRIATELY SO WE CAN DO THE ENFORCEMENT THAT WE SHOULD HAVE.

SO, UM, WHILE I DO SEE THE DOLLAR SIGNS AND I RECOGNIZE THAT WHAT WE COULD LOSE IN OUR POPULATION AND IN THE STABILITY OF OUR CITY IS TOO SIGNIFICANT.

AND THAT'S WHAT WE'RE

[00:50:01]

HERE FOR, IS TO REPRESENT OUR RESIDENTS.

THANK YOU.

ALL RIGHT, I'VE GOT SOME QUESTIONS.

UM, SO I'M GONNA START ON FINANCIAL IMPACT HERE.

UM, SO FROM WHAT I'M HEARING, THERE IS AN ONGOING, UH, FINANCIAL IMPACT COST TO THE CITY OR ENFORCEMENT OF A MILLION DOLLARS.

WE'RE NOT COLLECTING BECAUSE OF OUR HEAVY HANDED, UM, ESSENTIAL PROHIBITION ORDINANCE, WE'RE COLLECTING NO REGISTRATION FEES BECAUSE WE CAN'T REGISTER.

UM, THAT'S CORRECT.

RIGHT? YES, SIR.

CHAIR, THAT'S CORRECT.

OKAY.

WE ARE POTENTIALLY LOSING OUT OR WE ARE LOSING OUT ON TWO REVENUE SOURCES, REGISTRATION FEES, WHICH IS SUPPOSED TO BE HELP US WITH OUR FULL COST RECOVERY.

UM, AND THEN ALSO POTENTIALLY A LOT IN, IN HOT TAXES, WHICH I'M GONNA GET TO.

UM, NOW YOUR BRIEFING SAYS THERE ARE 34, 3495 SHORT TERM RENTALS OPERATING IN THE CITY, BUT WE BELIEVE THERE'S QUITE A BIT MORE THAN THAT, RIGHT? THAT WAS THE LAST ESTIMATE FROM SEPTEMBER 30TH FROM GOV OS, UH, RELEASED FROM THE CONTROLLER'S OFFICE.

SO I MEAN, IF WE TRUST GOOGLE AI OR AIR DNA, I MEAN, IT'S, THERE'S NINE OVER 9,000 SHORT-TERM RENTALS CURRENTLY LISTED IN THE CITY OF DALLAS.

WOULD THAT SURPRISE YOU IF WE HAD THAT MANY THAT ARE IN OPERATION? NO, SIR.

IT WOULDN'T SURPRISE ME.

I MEAN, AND, AND THE FACT IS BECAUSE YOU HAVE LIMITED RESOURCES TO ACTUALLY INVESTIGATE, UM, ALL OF THESE SHORT TERM RENTALS BECAUSE YOU DON'T HAVE ANY RESOURCES TO DO SO, RIGHT? CORRECT, SIR.

SO, UM, UH, CHAIR BLACK BLACKMAN MENTIONED, UM, THAT THERE, IF THE INJUNCTION IS, IS LIFTED AND YOU REPLIED WHAT, WHAT WOULD HAPPEN? LIKE YOUR STAFF COULD GET OUT THERE AND ACTUALLY DO QUITE A BIT MORE.

YOU COULD COULD GO OUT AND, AND INVESTIGATE TO, AND GO OUT AND INVESTIGATE A, A LITTLE, YOU, YOU KIND OF, THE SHACKLE WOULD BE RELEASED, ESSENTIALLY.

THAT IS CORRECT.

CHAIR WEST WITH THE CAVEAT, WHEN WE ORIGINALLY PROPOSED THE SHORT-TERM RENTAL PROGRAM, WE, WE PRESENTED MULTIPLE DIFFERENT ALLOCATION OF RESOURCES BASED ON THE PROJECTED NUMBER OF ST AND WHETHER THE COUNCIL AGREED WITH CPCS RECOMMENDATION TO BAN OR IF THEY WERE GOING TO BE ALLOWED CITYWIDE.

AND SO THE RESOURCE ALLOCATION THAT WE GOT WAS FOR THE BAN OPTION AND FOR THE SMALLER PROJECTED NUMBER OF STR THAT WE WOULD BE REGISTERING AND ENFORCING AGAINST.

AND SO IF WE OPENED UP THE ZONE INTO CITYWIDE, WE WOULD HAVE TO REVISIT THE RESOURCES AS WELL.

GOT IT.

I MEAN, YOU WOULD ALSO, IF THE LITIGATION WENT AWAY BECAUSE WE FORMULATED AN ORDINANCE THAT ACTUALLY PASSED THE LEGAL MUSTER, YOU MIGHT BE ABLE TO ACTUALLY GO OUT THERE AND ENFORCE THE ORDINANCE TOO, RIGHT? YES, WE HAVE GOOD TEETH AND GOOD POLICY IN CHAPTER 42 B THAT CO COMPLIANCE COULD GO OUT AND CONDUCT ENFORCEMENT ON SHORT-TERM RENTALS.

OKAY.

UM, LET'S TALK ABOUT THE HOTEL OCCUPANCY TAXES.

SO WHAT, SO WE KNOW THAT A PART OF IT, I THINK MY COLLEAGUE HERE, UM, WAS ABLE TO, TO REVEAL THERE'S ABOUT 15% OF THE, OR 12.5%, UM, GOING UP TO 15% OF, OF HOT WILL GO TO THE ARTS COMMUNITY, CORRECT? YES, THAT'S CORRECT.

WHAT, UM, OF THE OTHER, UH, PERCENTAGE, WHAT IS THAT MONEY USED FOR? MOST OF THE HOTEL TAX IS USED, UM, FOR CONVENTION CENTER, UM, AND THE, THE CITY TAKES APPROXIMATELY 67%.

THE OTHER PART THAT'S, THAT IS DIVIDED BETWEEN VISIT DALLAS AND THE UH, AND COACH.

OKAY.

SO THE CITY TAKES 67% OF THAT.

WHAT DOES THAT MEAN EXACTLY? APPROXIMATELY? WELL, OF THE TOTAL AMOUNT OF HOT COLLECTED, THE CITY RETAINS 67% AROUND THERE OF THAT.

AND THAT GOES TOWARDS CONVENTION CENTER OPERATIONS AND OTHER THINGS THAT, THAT REINFORCE, UM, THE CONVENTION CENTER AND UH, AND THAT'S, THAT'S CONSUMED BY THAT.

AND THEN THE, THE BALANCES BETWEEN OFFICE PARTS AND CULTURE AND VISIT DALLAS TO SELL AND MARKET THE CITY.

SO THE MORE HOT TAXES WE BRING IN, THE MORE FUNDS, UM, GO TO FUND THE CONVENTION CENTER AND EVERYTHING THAT COMES ALONG WITH THAT.

YES.

WHAT KINDS OF REVENUE DOES THE CITY OR, OR BENEFITS DO WE SEE REVENUE OR OTHERWISE FROM THE CONVENTION CENTER BRINGING IN MORE CONVENTIONS AND MORE PEOPLE TO THE CITY OF DALLAS? WELL, YOU WOULD HAVE, UM, SHERRY KOWALSKI, CITY CONTROLLER, MORE SALES TAX, MORE PEOPLE SPENDING MONEY IN DOWNTOWN.

WHAT IS SALES TAX USED FOR IS SIMILAR TO GENERAL FUNDS.

WE ABLE TO USE IT FOR POLICE FIRE YES.

STREETS.

YES.

THOSE KINDS OF THINGS.

YES.

SO WE WANT MORE SALES TAX YES.

IN THE CITY IT'S A GOOD THING.

YES.

'CAUSE FOLKS STAYING IN THE HOTEL WILL GO AND HOPEFULLY GO SHOPPING

[00:55:01]

DOWNTOWN, UM, YOU KNOW, GO TO THE MALL DOWN, GO TO NORTH PARK, GO TO AND SPEND A LOT OF MONEY HERE, HOPEFULLY.

UM, WITH OUR CURRENT ORDINANCE IN PLACE, IS THERE ANY KIND OF ESTIMATE IN WHAT TYPE OF, SO YOU SHOWED US ON THE PRESENTATION THAT OUR, THAT OUR HOT TAX COLLECTION'S ACTUALLY GONE DOWN AND, AND WHY IS THAT? FROM WHAT WE KNOW, THE, SOME OF THE HIGHER VOLUME PROPERTIES, AND WE'RE STILL DRILLING INTO THIS AND WE'LL GET YOU THE INFORMATION, IT SEEMS THAT SOME OF THOSE WERE SOLD.

SO WE HAVE MORE THAT HAVE REGISTERED AND WE KEEP PURSUING THEM, BUT THEY MAY BE A LOWER VOLUME OR THEY'RE REPORTING A LOWER VOLUME, OR THEY'RE NOT REPORTING, OR THEY'RE NOT REPORTING, BUT WE'VE BEEN MUCH MORE ACTIVE IN TRYING TO FIGURE THAT OUT.

AND WHEN WE GET REPORTS OF, UH, AN STR OPERATING AND NOT REGISTERED AND PAYING TAXES, THAT'S WHEN WE REFER IT TO OUR FRIENDS AND CODE COMPLIANCE.

AND WE A LOT OF TIMES WILL GET COMPLIANCE WITH THEM REGISTERING AND PAYING THE TAXES.

OKAY.

UM, ALRIGHT.

SO IF WE ASSUME THAT THE, YOU KNOW, AIR DNA AND GOOGLE AI IS CORRECT, THAT THERE'S 9,000 STR IN THE CITY OF DALLAS.

WHAT TYPE OF, AND I'M NOT SAYING THAT WE SHOULD BE LEGALIZING ALL OF THEM, BUT I'M, I'M JUST SAYING FOR COMPARISON PURPOSES, UM, IF WE WERE COLLECTING POT FROM ALL OF THEM, WHAT TYPE OF REVENUE WOULD BE WE'D BE LOOKING AT AS A CITY? WELL, THAT WOULD BE HARD TO ESTIMATE.

I WOULD NEED TO KNOW EXACTLY, UM, HOW MUCH VOLUME THEY HAD.

BUT THE ONE COMMENT, AND I MAY NEED MY, UM, COLLEAGUE DR.

ANDER CHECK TO JOIN US WHEN WE HAVE LOOKED IN THE PAST AT THE DATA THAT YOU'RE MENTIONING AND TRIED TO COMPARE IT, WHAT WE HAVE FOUND IS THERE WERE PROPERTIES NOT IN DALLAS COUNTY, NOT IN CITY OF DALLAS, NOT EVEN IN DALLAS COUNTY THAT WERE LISTED.

THE, UM, THOSE OTHER RESOURCES WILL LIST PROPERTIES THAT HAVE EVER BEEN LISTED THAT MAY NOT BE ACTIVE.

THEY WILL ALSO LIST EACH ROOM WITHIN A STR, THAT'S A HOUSE.

WHEREAS WHEN WE TRACK IT, WE TRACK IT BY THE TAXPAYER.

SO IF SOMEONE OWNS MORE THAN ONE PROPERTY OR OWNS A PROPERTY THAT HAS MULTIPLE ROOMS THEY RENT OUT, THAT'S COUNTED AS A ONE, NOT AS A SEVEN OR A NINE OR HOW MANY OF OUR ROOMS THAT IT'S, SO WE WOULD NEED TO DO ANOTHER LOOK AT THOSE NUMBERS.

AS I MENTIONED EARLIER, THE LAST TIME I LOOKED AT THE HOST COMPLIANCE NUMBERS WAS IN APRIL.

THEY HAD 53 40.

AND THERE, WHEN I TOOK OUT ANYTHING THAT HADN'T BEEN LISTED IN OVER SIX MONTHS, IT REDUCED IT BY 3000 DOWN TO 2000 ACTIVE.

I HAVE NOT GOTTEN THAT AGAIN FROM CODE COMPLIANCE, BUT I CAN LOOK AT THAT.

SO WE HAVE THE SOURCE FROM GOBOS, WE HAVE HOST COMPLIANCE AND THE OTHER PLATFORM THAT YOU MENTIONED, IT WOULD BE NICE TO HAVE A PROJECTION.

UM, I KNOW WE'RE KIND OF CONTINUOUSLY MOVING THE BALL WITH DIFFERENT QUESTIONS AND SCENARIOS, UM, BUT I WOULD LIKE TO KNOW THAT AT SOME POINT.

SO I'M GONNA TURN TO OUR FOLKS ON THE OTHER SIDE OVER HERE.

UM, SO I KNOW WE HAVE THE WORLD CUP COMING, WE TALKED ABOUT THAT A LITTLE BIT.

UM, ARE THERE OTHER EVENTS THAT YOU GUYS ARE PLANNING FOR THAT YOU'RE ANTICIPATING COMING TO DALLAS, UM, AT SOME POINT THAT YEAH, WE MIGHT HAVE A SURGE IN VISITORS.

I'M GONNA PUT THIS OVER TO, TO, UH, MONICA, BUT IN THE MEANTIME WE'RE GOING THROUGH CONVENTION CENTER CONSTRUCTION NEXT YEAR.

SO OUR LARGE EVENTS WILL GO DOWN SUBSTANTIALLY AS WE GET READY FOR, UH, WORLD CUP.

AND THEN WE GO THROUGH THE CONSTRUCTION AND RENOVATION MENTION CENTER.

SO, UM, OUR LARGE EVENTS ARE GOING TO BE CUT OFF PRETTY SUBSTANTIALLY AFTER THE MID PART OF NEXT YEAR, BUT BEYOND 2026, I'M GONNA PUSH IT OVER TO MONICA BECAUSE THERE ARE SO MANY OTHER EVENTS IN THE OPTING AS WELL.

YEP.

THANK YOU CRAIG.

UM, OBVIOUSLY THE NEW CONVENTION CENTER IS, IS A BIG PIECE OF ANY MAJOR EVENT THAT WE HOST, USUALLY HOSTING THE, THE FAN FESTIVAL ELEMENT, UH, OF THAT, THE ONES THAT WE KNOW CONFIRMED FOR THE FUTURE, 2030 MEN'S FINAL FOUR IS ALREADY CONFIRMED, UH, AS WELL AS 2031 WOMEN'S FINAL FOUR.

UH, WE ARE ALSO IN DISCUSSIONS IN A CANDIDATE HOST CITY FOR THE WORLD RUGBY WORLD CUP FOR MEN'S OF 2031.

WOW.

AND THEN WOMEN'S WORLD RUGBY, UH, IN 2033, UH, THERE'S BEEN SOME DISCUSSIONS, UH, OF US SOCCER, UH, EVENTUALLY BIDDING ON A WOMEN'S WORLD CUP.

THEY DID IN 27, UH, THAT THAT DID WAS, UH, POOL WITHDRAWN FROM FIFA.

UH, THE NEXT OPPORTUNITY IS 2031 AS WELL.

SO WE FEEL LIKE THROUGH HOPEFULLY A VERY SUCCESSFUL 2026, UH, WOULD

[01:00:01]

BE GREAT MOMENTUM GOING INTO 2031.

I ALSO THINK THAT WITH THE CONVENTION CENTER BEING, UM, UH, COMPLETE, UH, HOPEFULLY BY 2029, THAT REALLY DOES OPEN THE DOOR FOR A VERY BROAD CYCLE OF MAJOR EVENTS, UH, RETURNING IN THE THIRTIES, UH, MEANING, UH, NBA ALL STAR, WHICH WE HOSTED BACK IN 2010, NOT IN THE BID PROCESS, BUT THOSE WOULD BE THE KIND OF THE PRIME PRIME YEARS.

ANOTHER, YOU KNOW, SUPER BOWL, HOPEFULLY OPPORTUNITY THERE.

THERE'S KIND OF A LONG LIST OF EVENTS IN THE, THAT 2030 TIME PERIOD.

IT SEEMS LIKE THE GREAT PLACE FOR THEM.

NO, LIKE THESE TYPES OF EVENTS THAT COME IN, I MEAN, THEY'RE VERY EXCITING FOR THE CITY.

PEOPLE HAVE TO STAY SOMEWHERE, RIGHT? AND NOT EVERYBODY IS ABLE TO OR WANTS TO STAY IN A TRADITIONAL HOTEL ROOM.

AND IT, IT'S NOT ALWAYS JUST THE PARTIES THAT ARE HAPPENING AS HAS BEEN MENTIONED, BUT WHEN PEOPLE COMPLAIN ABOUT SHORT-TERM RENTALS, THEY COMPLAIN ABOUT THE PARTY HOUSES.

THAT'S WHAT ALWAYS HAPPENS.

AND IT HAPPENED IN MY DISTRICT.

I I GET THAT AND I'M SENSITIVE TO THAT CERTAINLY.

BUT THERE'S ALSO THE FAMILIES THAT ARE TRAVELING WITH THE PLAYERS AND THE TEAMS, THE, THE DOCTORS, THE, THE TRAINERS, YOUR, YOUR, UH, YOUR, YOUR ENTOURAGE THAT'S HERE TO TRAIN AND PREPARE AND NOT NECESSARILY HERE TO JUST PARTY IT UP.

AND SO I GUESS, UM, WE NEED TO JUST BE PREPARED FOR WHAT'S GONNA HAPPEN REGARDLESS OF WHAT ORDINANCE WE PUT IN PLACE, BECAUSE THESE AIRBNBS ARE GONNA POP UP.

WHAT DO WE HAVE A COMPARISON FROM FROM LIKE OTHER CITIES, UM, WHEN, WHEN THEY'VE SEEN WORLD CUPS OR LIKE THE OLYMPICS OR SOMETHING ON, ON WHAT KINDS OF AIRBNB SURGES HAPPEN IN THESE CITIES? THANK YOU.

YEAH, I, I WAS LOOKING INTO THAT A LITTLE BIT EARLIER AND I WAS LOOKING, UH, ACCORDING TO AIR DNA TOO WHO DID AN ANALYSIS TOO ON THE, UH, OLYMPIC GAMES IN PARIS.

BUT WHEN WE LOOKED AT IT THERE, THE ACTIVE LISTINGS, UH, FOR THE MONTH OF AUGUST THIS YEAR WENT UP BY 25,000 TO 62 AND A HALF, THERE WAS A HUGE SURGE OF 65% UPLIFT IN LISTINGS BECAUSE OF THAT OPPORTUNITY, RIGHT? THAT THOSE BIG EVENTS THAT THE HOTELS DON'T HAVE THE INVENTORY TO HANDLE IT.

SO A LOT OF HOMEOWNERS WILL, UH, BRING FORTH THEIR LISTING TO, TO BRING IT UP.

SO IT'S A SIGNIFICANT CHUNK AS WELL AS OBVIOUSLY A MUCH, MUCH VERY STRONG BOAT AND GREAT AND THINGS LIKE THAT TO ALSO GO WITH.

AND IT'S A WAY FOR HOMEOWNERS TO HELP SUPPLEMENT THEIR, TO STAY IN THEIR HOMES, WHICH WE DON'T, RARE, WE RARELY TALK ABOUT THIS IS THE SECOND SOURCE OF INCOME.

SO I THINK, YOU KNOW WHAT, WHAT MY POINT IS WITH THIS IS THAT WE RIGHT NOW HAVE AN ORDINANCE THAT ESSENTIALLY SERVES AS A PROHIBITION.

UM, WE AS A COUNCIL COLLECTIVELY NOT SINGLING OUT ANY MEMBER, BUT COLLECTIVELY WE PUT OUR HEADS IN THE SAND AND WE SCREAM AND YELL ABOUT HOW WE CAN'T DO BETTER ABOUT ENFORCEMENT.

UM, WHEN IN REALITY WE NEED TO HAVE AN ORDINANCE THAT WE CAN ACTUALLY ENFORCE AND WE NEED TO HAVE AN ORDINANCE THAT BRINGS IN REVENUE FOR US SO THAT WE CAN, WE CAN STAND UP A TEAM THAT'S READY WHEN WE HAVE THE SURGE THAT WE KNOW IS GOING TO HAPPEN, UM, WHEN WE, WHEN THE WORLD CUP GETS HERE.

AND THEN WE'LL REAP THE BENEFITS FROM IT TOO, BECAUSE WE'LL HAVE THE REVENUE COMING IN FROM THE HOT.

SO WE HAVE PASSED AN ORDINANCE.

THAT'S A, THAT'S A PROBLEM, UM, TO US AND IT'S CONTINUING TO BE A PROBLEM.

SO I GUESS I HAVE A QUESTION NOW FOR THE CITY ATTORNEY WHERE I HAVE CITY ATTORNEY COULD, COULD OPINE IF WE WANTED TO RETHINK OUR ORDINANCE AND, UM, CONSIDER A DIFFERENT PATH THAN THE ONE THAT WE ARE CURRENTLY GOING DOWN, WHAT IS THE APPROPRIATE ROUTE FOR US TO TAKE? SO THERE'S TWO CHAPTERS IN THE CODE THAT THIS AFFECTS.

ONE IS THE REGISTRATION.

SO THAT WOULD BE A PRETTY SIMPLE PROCESS.

UH, THAT COULD JUST BE A FIVE SIGNATURE MEMO OR A COUNCIL COMMITTEE.

IT COULD START IN A COUNCIL COMMITTEE.

COUNCIL COMMITTEE COULD SIT IT ON TO CITY COUNCIL FOR CONSIDERATION.

UH, THE ZONING PIECE IS A LITTLE BIT MORE COMPLICATED BECAUSE THAT WOULD HAVE TO GO THROUGH THE ZONING PROCESS AGAIN.

UH, SO, UM, AGAIN, IT COULD BE AUTHORIZED BY CITY COUNCIL, BUT IT WOULD WIND UP LIKELY GOING THROUGH Z OAC AND IT WOULD HAVE TO GO THROUGH CBC BEFORE IT CAME BACK TO CITY COUNCIL.

WHY? I MEAN, WE'VE ALREADY LITIGATED ALL OF THAT.

WHY CAN'T WE JUST KEEP IT AT COUNCIL ON THE SECOND ONE? UH, IT'S STATE LAW THAT, UH, ANYTIME YOU AMEND A THE ZONING CODE, IT HAS TO GO THROUGH CPC.

UM, WHAT IF THERE WAS, SO WE, AND IF, TELL ME IF I GET TO INTO WHERE IT NEEDS TO BE EXECUTIVE SESSION, I'M NOT GONNA PULL YOU IN THERE, BUT, UM, WE CAN REVISIT IT.

UM, LIKE WE HAD TALKED ABOUT IN THE PAST, SETTLED RIGHTS OR, UM, THE OTHER LEGAL TERM WHERE SOMEONE WAS OPERATING APPROPRIATELY PAYING HOT BEFORE WE PASSED THIS ORDINANCE, WHATEVER THAT'S CALLED, THAT'S NOT CHANGING ZONING, THAT'S JUST ALLOWING IT TO HAPPEN.

THAT'S, THAT'S LEGALIZING IT FOR THOSE INDIVIDUALS.

AM I WRONG?

[01:05:02]

UH, THAT WOULD REQUIRE A CHANGE TO THE DEVELOPMENT CODE IN ORDER TO ALLOW THAT.

OKAY.

SO IT WOULD BE CONSIDERED ZONING CHANGE? CORRECT.

OKAY.

UM, OF THESE TWO PROCESSES, UM, WOULD IT BE ENOUGH TO GET IT FOR THIS COMMITTEE TO SAY WE WANNA REVISIT THE ORDINANCE? UM, ARE YOU GONNA NEED SOMETHING, WILL STAFF NEED SOMETHING MORE OFFICIAL? UH, SO WE NEED AN AUTHORIZATION.

SO, UH, A COMMITTEE COULD PUT AN ITEM ON TO SEND IT ON TO CITY COUNCIL TO REQUEST THAT CITY COUNCIL AUTHORIZE A PUBLIC HEARING.

THEN THAT WOULD GET THE BALL ROLLING.

OKAY.

WHY CAN'T WE JUST SAY TODAY WE WANT TO PUT IT ON FULL COUNSEL AGENDA AND, UH, FOR CONSIDERATION AND COUNSEL CAN FIGURE IT OUT? WELL, THAT'S, THAT'S NOT ON YOUR AGENDA FOR TODAY.

THAT WOULD, THAT WOULD NEED TO BE A SEPARATE ITEM.

SO THIS IS JUST A BRIEFING ON FINANCIAL ISSUES INVOLVING SDRS TODAY.

OKAY.

SO WE WOULD NEED TO SET IT AS AN ACTUAL ITEM CORRECT.

FOR CONSIDERATION.

UM, AND THAT COULD, THAT COULD HANDLE BOTH OF THOSE ITEM ONE REGISTRATION ITEM TWO ZONING, CORRECT? CORRECT.

OKAY.

THAT'S MY QUESTIONS.

COLLEAGUES CHAIR.

YOU KNOW, WE'VE DEBATED THIS AD NAUSEUM, WE'VE HAD SO MUCH COMMUNITY ENGAGEMENT.

IN FACT, I WOULD SAY IT KICKED OFF THIS ENGAGEMENT FOR, FOR DALLAS.

I CAN'T BELIEVE THAT YOU'RE WANTING TO DO THIS AGAIN, AND I FEEL LIKE YOU'RE HIJACKING THIS COMMITTEE TO DO IT.

SO IF YOU WANNA GET A FIVE SIGNATURE MEMO AND ASK THE FULL COUNCIL TO GET INVOLVED, I THINK THAT'S FAIR.

BUT WHEN YOU PUT IT BACK ON THE AGENDA, I WILL NOT BE AT THIS COMMITTEE MEETING AND I HOPE YOU DON'T GET QUORUM QUESTION.

GO AHEAD.

UH, CASEY, UM, SO IT, IT, TO SOME DEGREE, I AGREE WITH MS. MENDELSON THAT WE'VE, IT IT'S IN A COURT, IT'S IN THE COURTS, AND WE DON'T KNOW WHEN A RULING WOULD COME OUT.

CORRECT.

OKAY.

IS THERE BEEN, HAVE WE, WHERE ARE WE IN THIS WHOLE PROCESS? UH, I WOULD NEED TO DEFER TO THE LITIGATORS ON THAT.

I DON'T BELIEVE WE HAVE ANYBODY AVAILABLE TODAY.

OKAY.

BECAUSE I DO FEEL THAT WE'VE HAD THIS DISCUSSION, IT'S GOING THROUGH THE COURT SYSTEM AND IF THERE, IS THERE A REASON WHY WE NEED TO NOW LITERALLY TAKE IT BACK THROUGH THE PROCESS TO START OVER AGAIN? OTHER THAN, I MEAN, I'M, I'M TRYING TO UNDERSTAND FROM YOUR POINT, MR. WEST, WHY, WHY DO WE NEED TO SEND IT BACK THROUGH? WHAT, WHAT IS THAT REASON? YEAH, I'M HAPPY TO ANSWER THAT.

I MEAN, I'LL JUST REITERATE WHAT I SAID THAT I, I DON'T BELIEVE, AND YOU MAY REMEMBER, I, ONE OF THE, I WAS ONE OF THE NO VOTES, I DON'T BELIEVE WHY WAS TO, I DON'T BELIEVE WE PASSED AN ORDINANCE THAT I THINK WE PASSED THE MOST HEAVY HANDED ORDINANCE POSSIBLE.

AND IT'S CLEAR THAT THE COURTS AGREE THAT IT DOES NOT PASS THE LEGAL MUSTER.

SO YEAH, WE COULD CONTINUE WAITING AND WHILE WE'RE WAITING, WE'RE MISSING OUT ON TENS OF MILLIONS AND POTENTIALLY IN HOT TAX MONEY.

UM, AND WE HAVE A, NOR WE CAN'T ENFORCE.

SO I THINK WE ADMIT THAT WE GOT IT WRONG, WE MOVE FORWARD AND WE, WE ACTUALLY PASS AN ORDINANCE THAT GETS IT.

RIGHT.

AND HAVE WE TALKED TO THE ATTORNEYS ABOUT THAT? UM, I MEAN, I HAVE, YEAH.

AND, AND THEN WE'VE, WE'VE HEARD TODAY WHAT THE PATH IS BECAUSE I, I DO AGREE THAT WE NEED TO GO THROUGH THE COURT SYSTEM.

IT NEEDS TO, IT NEEDS TO GO THROUGH IT.

I, I AND YES, THE, THE BODY SPOKE, PEOPLE SPOKE, AND IF WE WANNA HAVE THIS CONVERSATION AGAIN, I DON'T THINK IT'S GOING TO CHANGE.

I THINK WE'RE STILL GONNA BE RIGHT AT SQUARE ONE.

AND I'M PROBABLY GONNA SAY I'M KIND OF WITH MS. MENDELSSOHN.

I, I'LL, I JUST THINK THAT IT IS NOT A GOOD PUBLIC POLICY APPROACH, HOWEVER WE ARE, I JUST DON'T THINK WE'RE EITHER TO BRING IT BACK.

I, I THINK WE NEED TO BRING IT BACK IN THOUGHTFULNESS, NOT IN LIKE WITH INTENT.

NOT JUST TO DO IT BECAUSE OF, UH, I JUST DON'T FEEL THERE'S A CLEAR REASON TO RELOOK AT IT.

AGAIN, I I JUST DON'T.

SO IF YOU CAN FIGURE OUT ANOTHER, OTHER THAN, I MEAN, I JUST DON'T FEEL THAT, THAT WAY.

I FEEL THAT IT NEEDS TO WORK THROUGH THE COURT SYSTEM.

AND I ANYWAY, I, THIS WAS A CURVE BALL AND I WISH THAT IT WOULD'VE.

ANYWAY.

I THANK YOU.

YEAH.

AND I THINK, YOU KNOW, JUST TO, IN RESPONSE TO THAT, I APPRECIATE THE COMMENTS AND I, I THINK IT'S, IT'S, YOU KNOW, WE WE'RE ALL OVER THE SPECTRUM ON THIS, BUT THE, YOU KNOW, WE CONTINUE TO HEAR THE COMPLAINTS FROM RESIDENTS.

WE SEE THE NEWS REPORTS OF PE OF, OF PARTIES HAPPENING.

AND, UM, YOU KNOW, I THINK MY INTENT IS JUST TO FIND AN ORDINANCE THAT WORKS.

AND, UH, IT MAY BE IT, IT MAY BE, YOU KNOW, THE COURTS DO THAT FOR US, BUT I DON'T THINK WE ALWAYS HAVE TO WAIT FOR THE COURTS.

I THINK WE CAN DO IT OURSELVES.

SO COLLEAGUES, DO YOU HAVE ANY, ANYTHING ELSE? YEAH, YOU KNOW, I DON'T WANNA RE-LITIGATE THE

[01:10:01]

ENTIRE SHORT-TERM RENTAL DEBATE, BUT IT'S NOT LIMITED TO PARTIES, IT'S LIMITED TO A, IT, IT, IT, IT'S ACTUALLY EXPANDED TO MANY, MANY THINGS, INCLUDING ON STREET PARKING, INCLUDING LOSING THE STABILITY OF A, A TRUSTED NEIGHBOR TO HAVING A HOTEL RIGHT NEXT TO YOU WHERE YOU NEVER KNOW WHO WILL BE THERE, WHAT THEY'LL BE DOING.

YOU WANNA TALK ABOUT ENFORCEMENT? I CHAIR PUBLIC SAFETY.

I KNOW HOW LONG IT TAKES FOR THE POLICE TO COME.

GOD LOVE YOU.

YOU DON'T HAVE PEOPLE 24 HOURS THAT ARE GONNA BE UP IN MY DISTRICT BECAUSE I KNOW HOW LONG IT TAKES TO GET FROM HERE.

AND AT NIGHT ON THE WEEKENDS, I KNOW WHERE YOU ARE.

AND IT'S NOT IN DISTRICT 12, WE DO NOT WANNA HAVE THESE, NOW YOU HAVE SOMETHING NEW TO CONTRIBUTE JUST 'CAUSE YOU'RE ON THE LOSING SIDE OF A VOTE AND YOU SAY, HEY, I WANNA DO A PILOT PROGRAM IN MY DISTRICT, I WANNA DO THIS.

I THINK THAT'S A COMPLETELY DIFFERENT CONVERSATION.

BUT TO TRY TO JUST REOPEN SOMETHING THAT HAS HAD SO MUCH CONVERSATION, SO MUCH MEDIA, SO MUCH PUBLIC INPUT, JUST 'CAUSE YOU DON'T LIKE THE OUTCOME IS NOT RIGHT.

AND I, I FEEL THIS IS, I I'M VERY SURPRISED THAT THIS IS WHERE YOU'RE GOING WITH THIS.

WE HAVE A LAWSUIT GOING, WE NEED TO HEAR WHAT THE ANSWER IS ON THAT.

BUT I, I'M VERY SURPRISED THAT THIS IS, UM, THE AVENUE YOU'RE TAKING ON THIS AND I HOPE YOU'LL RECONSIDER IT AND PERHAPS REFINE WHAT YOUR GOAL IS.

THANK YOU.

I APPRECIATE IT.

AND I DO WANNA REMIND EVERYONE, THE LAWSUIT RIGHT NOW IS WE ARE IN THE APPEAL STAGE ON THE INJUNCTION.

SO WE'RE AT THE BEGINNING OF THE LAWSUIT STAGE IS, COULD BE YEARS BEFORE THIS IS SETTLED.

AND MEANWHILE, WE'RE GONNA HAVE THE WORLD CUP HERE.

WE'RE GONNA HAVE POTENTIALLY OTHER EVENTS THAT ARE GONNA BE BOOKING AND WE ARE MISSING MILLIONS AND MILLIONS IN HOT DOLLARS.

SO THAT'S, THAT IS THERE IS THE COMBINATION, YOU KNOW, I'VE SAID MY PIECE, GO AHEAD.

SO I SUGGEST WE HAVE A FULL COUNSEL EXECUTIVE BRIEFING ON THIS AND GET A LEGAL, GET SOME LEGAL ADVICE ON WHAT THE COURSE OF ACTION IS AND IF IT'S WORTH THE, INTO A COST BENEFIT ANALYSIS, IS THIS WORTH THE ROAD TO GO DOWN? MM-HMM.

, I DON'T THINK WE NEED TO GO THROUGH A, AND IF YOU WANNA THEN TAKE IT FROM A FIVE SIGNATURE MEMO OR BRING IT HERE, THEN THAT'S FINE.

BUT I DO BELIEVE, CASEY, IF YOU'RE AND ANYBODY IN THE CAO IS LISTENING, I THINK WE NEED TO COME BACK AND HAVE A REALLY THEN HARD DISCUSSION ON WHAT LEGAL LEAD LOOKS LIKE AND IS WHAT IS THE COURSE OF ACTION.

YEAH.

WELL THANK YOU FOR THAT.

AND ACTUALLY I SHOULD HAVE LED WITH THAT.

MY CONVERSATIONS WITH THE CITY ATTORNEYS WERE LIKE, ALL RIGHT, WE NEED TO GET SOME COMMITTEE DISCUSSIONS GOING AND THEN HAVE LIKE A, HAVE A, YOU KNOW, CITY I THINK CITY ATTORNEYS WILL GIVE YOU AN INTER INTERESTING PERSPECTIVE, UM, THAT THEY OBVIOUSLY CAN'T GET OUT HERE.

SO YEAH, I THINK THAT'S GOOD.

A GOOD IDEA FOR JACK, DID YOU HEAR THAT? LIKE, FOR A FULL COUNCIL EXECUTIVE SESSION? UM, WE'LL GET THAT TEED UP.

ALL RIGHT.

I THINK WE BEAT THAT HORSE QUITE A BIT.

SO THANK YOU EVERYBODY.

THANKS TO OUR GUESTS FOR COMING.

WE WILL TRY TO GET THROUGH THE REST OF OUR AGENDA BEFORE WE LOSE QUORUM HERE IN A MOMENT.

UM, OKAY.

THE EXTERNAL AUDIT PLANNING MEETING, I KNOW WE HAVE, DO WE HAVE A GUEST HERE FOR THIS JACK? YOU GUYS SURE.

YOU WANT TO COME DOWN THERE? ? I'M JUST KIDDING.

WELCOME.

I, YEAH, AND WE, WE, IF WE COULD KEEP IT FAIRLY BRIEF, THAT WOULD BE GREAT.

JUST 'CAUSE WE DO HAVE FOLKS LEAVING, MYSELF INCLUDED.

UM, PRETTY CLOSE TO FOUR O'CLOCK.

THANK YOU.

YEAH, GO AHEAD.

THERE WE GO.

SORRY ABOUT THAT.

UM, SARAH DEMPSEY HERE WITH WEAVER.

I'M THE AUDIT PARTNER ON THE ENGAGEMENT AND WE ARE REQUIRED TO COME TO YOU BEFORE THE AUDIT BEGINS AND LET YOU KNOW WHAT OUR PLAN IS.

SO THAT'S WHAT WE'RE HERE TO DO TODAY, IS TALK THROUGH WHAT THE PLAN IS AND IF YOU HAVE ANY COMMENTS OR NEED TO TALK TO US, IT REALLY OPENS UP THAT DIALOGUE.

SO THE NEXT SLIDE WE'LL GO THROUGH, UM, INTERIM COMMUNICATIONS, OUR AUDIT PROCESS, ANY NEW ACCOUNTING PRONOUNCEMENTS, AND THEN, UM, IF YOU HAVE ANY CONCERNS, WE CAN TALK ABOUT THEM HERE OR YOU CAN TALK TO US LATER ABOUT IT.

SO THE AUDIT TEAM IS THE SAME AS PRIOR YEAR, SO, UM, I DON'T HAVE TO SPEND A LOT OF TIME ON THAT.

WE'VE GOT, UM, THE SAME PEOPLE IN PLACE THAT WE'VE HAD IN THE PRIOR YEARS.

SO THEY'RE GOING TO CONTINUE ON THE AUDIT ENGAGEMENT THAT IS OUR SUBCONTRACTORS WEAVER, UM, AN IT ADVISORY PARTNER, QUALITY CONTROL PARTNER, UM, AND A WEAVER ANALYTICS TEAM AS WELL.

SO WE'RE RESPONSIBLE FOR ISSUING AN OPINION ON THE FINANCIAL STATEMENTS IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AND GENERALLY ACCEPTED GOVERNMENT AUDITING STANDARDS.

UH, WE'LL BE TESTING THE BALANCES AND REALLY

[01:15:01]

THIS IS A FINANCIAL STATEMENT AUDIT WHERE WE GIVE AN OPINION ON THE FINANCIAL STATEMENT DATA THAT IS GIVEN TO US BY THE CITY NEXT.

EXCELLENT.

UH, WE ALSO HAVE REQUIREMENTS UNDER THE UNIFORM GUIDANCE AND THE TEXAS GRANT MANAGEMENT STANDARDS.

AND SO THAT'S WHERE WE'RE DOING THE STATE AND FEDERAL SINGLE AUDIT.

WE'LL HAVE MAJOR FUNDS AND MAJOR PROGRAMS THAT WE TEST, UM, OUT OF THOSE GRANTS THAT ARE SELECTED.

AND WE'RE REQUIRED TO GIVE AN OPINION THAT THOSE MAJOR, MAJOR PROGRAMS THAT ARE SELECTED ARE DONE IN ACCORDANCE WITH THOSE DIRECTED MATERIAL COMPLIANCE REQUIREMENTS.

THANKS.

AND THEN OUR RESPONSIBILITIES FOR THE INFORMATION IN THE ACT FOR, JUST TO REMIND YOU, THE FINANCIAL STATEMENTS ARE FAIRLY LARGE.

THERE ARE PIECES THAT ARE UNAUDITED IN THERE.

WE DO HAVE, UM, A FEW STATEMENTS.

UM, THE STA THE STATISTICAL SECTION, INTRODUCTORY SECTION ARE PROVIDED BY THE CITY.

WE READ THOSE AND MAKE SURE THAT THEY ALIGN WITH OUR AUDIT PROCEDURES, BUT WE DON'T TEST THOSE SCHEDULES AND THE FINANCIALS.

AND THEN FOR, LET'S GO AHEAD AND MOVE ON TO, UM, IF, IF, UNLESS YOU HAVE ANYTHING REALLY CRITICAL, WE'LL MOVE ON TO QUESTIONS FROM COMMITTEE MEMBERS.

YEAH, DEFINITELY.

AT THIS POINT, DEFINITELY.

MM-HMM.

, DID YOU HAVE ANYTHING TO ADD, SHELLY? UM, NO, NOT AT THIS TIME.

OKAY.

COLLEAGUES? NO, I THINK WE'RE GOOD.

THANK YOU.

OKAY, GREAT.

THANK YI APPRECIATE YOU WAITING AROUND WITH US TODAY.

YEAH, DEFINITELY.

ALRIGHT, COLLEAGUES, WE'RE GONNA MOVE ON TO, UH, WE'LL JUST GO THROUGH THE BRIEFING ITEMS ONE AT A TIME.

UH, BRIEFING ITEM E THE REPORT ON PROGRESS OF FAMILY GATEWAY PROPERTY REPAIRS.

ANY QUESTIONS? NO GOOD JOB STAFF FOR, FOR KEEPING THAT GOING AND UH, FOR STAYING ON TOP OF THAT.

THE ITEM F IS OUR MONTHLY BUDGET ACCOUNTABILITY REPORT.

QUESTIONS? YEP.

UH, MR. RESENDEZ, THANK YOU.

I DO HAVE, UH, ONE QUESTION ON THAT.

JACK, IF YOU COULD, UM, DO YOU MIND EXPLAINING WHY THE PARK AND RECREATION IS FORECAST TO END FISCAL YEAR 2024 OVER BUDGET BY 3.6 MILLION Y? YES, SIR.

THANK YOU FOR THAT.

UM, AS YOU KNOW, THIS IS, UM, A MONTHLY REPORT THAT WE, WE PUT OUT FORECASTING WHERE DEPARTMENTS WILL END THE FISCAL YEAR.

UH, THE PARK AND RECREATION DEPARTMENT IS THE ONLY DEPARTMENT THAT IS CURRENTLY FORECAST TO END THE YEAR OVER BUDGET.

UM, WE, UM, BELIEVE THAT THEY ARE OVER BUDGET PRIMARILY DUE TO TEMPORARY HELP AND OTHER PERSONNEL COSTS.

UM, IN CONVERSATIONS WITH THE PARK DEPARTMENT AS LATE AS YESTERDAY, THEY HAVE IDENTIFIED WAYS THAT THEY THINK THEY'RE GOING TO BE ABLE TO BRING THEIR BUDGET BACK IN LINE WITH WHAT THE COUNCIL HAS APPROVED.

SO THEY'RE WORKING TOWARDS THAT THROUGH REIMBURSEMENTS, UH, THROUGH, THROUGH OTHER MEANS THAT THEY HAVE, UH, RELEASING ENCUMBRANCES, ET CETERA.

AND THEY EXPECT TO END THE YEAR AT BUDGET.

BUT I, I JUST WANT TO UH, POINT OUT THAT IF A DEPARTMENT ENDS THE YEAR OVER BUDGET, WE WOULD HAVE TO BRING THAT BACK TO THE CITY COUNCIL TO MAKE A BUDGET ADJUSTMENT BECAUSE THE ORDINANCE THAT Y'ALL APPROVE IS AT THE DEPARTMENTAL LEVEL.

AND SO, UH, TO UH, TO DEAL WITH THAT, IF THEY CAN'T BRING THEIR EXPENSES DOWN, UH, WE WOULD HAVE TO GO IN AND ASK YOU AS A COUNCIL TO MOVE APPROPRIATIONS AROUND.

UH, FOR EXAMPLE, FROM DEPARTMENTS THAT HAVE SAVINGS TO COVER THE OVERAGES BY THE POLICE, UH, BY THE PARK DEPARTMENT ALMOST SLIPPED UP.

I ALWAYS AM THINKING OF POLICE BEING OVER BUDGET, BUT, UH, UH, THAT IN THIS CASE THE PARK DEPARTMENT.

SO WE WILL WORK WITH THEM OVER THE NEXT SEVERAL WEEKS.

IF WE CANNOT GET THEM BACK UNDER BUDGET BY THE END OF THE CLOSE OF THE FISCAL YEAR, UM, THEN JUST KNOW THAT WE WILL BE BACK TO YOU WITH AN ITEM TO APPROVE THAT ADJUSTMENT.

IT'S NOT BOTTOM LINE, WE'RE UNDER BUDGET, BUT THAT DEPARTMENT IS OVER BUDGET AND THAT IS A PROBLEM.

GOT IT.

I APPRECIATE THAT.

SO IN THE ENDING, THE YEAR OVER BUDGET IS ALLOWED, BUT IT'LL JUST TAKE ADDITIONAL COUNSEL ACTIONS TO ADDRESS IT.

IT'S, IT'S NOT ALLOWED FOR AN INDIVIDUAL DEPARTMENT TO EXCEED THE APPROPRIATIONS THAT Y'ALL HAVE APPROVED.

WE WILL HAVE TO CORRECT IT BEFORE UH, THE FISCAL YEAR ACTUALLY CLOSES.

GOT IT.

OKAY.

THANK YOU SO MUCH.

THANK YOU.

SO I'M SORRY, WOULD, SO WOULD THAT JUST BE A BUDGET AMENDMENT FROM, SO WE HAD MOVED MONEY INTO CONTINGENCY RESERVE.

WOULD YOU JUST MOVE THAT BACK OUT AND PUT IT TO PARKS? WE, WE COULD, OR IN THIS PARTICULAR CASE, BECAUSE THE TOTAL GENERAL FUND IS UNDER BUDGET BY $11.5 MILLION.

UM, FOR EXAMPLE, UM, CODE COMPLIANCE IS UNDER BUDGET BY 1.8.

SO WE WOULD TAKE THAT 1.8 AND HELP FIX PARKS.

UM, BUDGET MANAGEMENT SERVICES IS UNDER BUDGET BY 200,000.

WE WOULD USE THAT TO HELP FIX PARKS.

WE WOULD JUST HAVE TO MOVE THE APPROPRIATIONS AROUND.

BUT DIDN'T WE ALREADY DO A BUDGET AMENDMENT FOR THAT TO MOVE IT TO, TO CONTINUE? SO WE DID, UH, EARLIER IN THE YEAR DO TWO, UH, ADJUSTMENTS FOR PARK AND RECREATION.

UH, ON MAY THE EIGHTH,

[01:20:01]

WE INCREASED THEIR BUDGET BY $2.2 MILLION.

NO, BUT I'M SAYING, BUT THEN WE ALREADY, I'M SORRY, BUT DIDN'T WE ALREADY MOVE CODE COMPLIANCE AND, AND THE OVERAGE FROM BUDGET AND FINANCIAL MANAGEMENT? SO WE DID ALREADY MAKE SOME ADJUSTMENTS, UH, BUT IF THIS IS WHERE WE END, WE WOULD HAVE TO COME BACK WITH AN ADDITIONAL ADJUSTMENT.

ARE YOU SAYING THAT CODE HAS AN ADDITIONAL $1.3 MILLION BEYOND THE BUDGET AMENDMENT? WE ALREADY DID.

UM, THEY ARE CURRENTLY FORECAST TO BE 1.8 MILLION.

1.8 MILLION UNDER BUDGET.

YES.

BEYOND THE AMENDMENT WE ALREADY MADE, CORRECT? YES.

REALLY.

WOW.

AND THAT, THAT END OF YOUR ORDINANCE WAS BASED ON THE JULY BAR AT THAT POINT IN TIME.

SO WE HAVE MORE, WE'VE GOT MORE, UH, INFORMATION AND THIS IS WHERE THEY ARE RIGHT NOW.

OKAY, THANKS.

THANK YOU COUNCIL MEMBER.

ALRIGHT, MOVING ON.

ITEM G UM, ITEM, GO AHEAD.

YES, GO AHEAD.

SO THIS IS ABOUT, UH, RATIFICATION OF ITEMS THAT HAD CONTRACTS THAT HAD LAPSED.

AND THERE'S THREE OF THEM.

AND I'M JUST TRYING TO UNDERSTAND, UH, WE HAD A PRETTY ROBUST CONVERSATION THE LAST TIME THIS HAPPENED.

AND SO I'M JUST TRYING TO UNDERSTAND WHAT IS MANAGEMENT'S OVERSIGHT OF THE CONTRACTS SO THAT DEPARTMENTS ARE ALERTED IN ENOUGH TIME TO RECURE AND IF IT'S IGNORED THAT IT'S MOVING UP THE CHAIN SO THAT PEOPLE KNOW THAT THE CONTRACTS ARE GONNA, THIS, THERE'S OVER $7 MILLION.

THANK YOU FOR THE QUESTION.

MS. MENDELSON, ZO GIBSON CITY MANAGER'S OFFICE.

SO WE, WE AGREE THAT, UH, THIS IS AN EXTRAORDINARY ITEM.

UH, WE'VE BEEN WORKING WHAT'S THREE ITEMS? YES MA'AM.

THREE EXTRAORDINARY ITEMS. UH, OUR CITY MANAGER HAS ASKED US TO GO BACK AND ACTUALLY LOOK AT HOW WE'RE ADDRESSING ALL OF THAT, INCLUDING MY BRIEFING TO YOU TODAY.

THIS ACTUAL MEMORANDUM.

IN THE PAST, WE HADN'T ALWAYS COME TO A COUNCIL COMMITTEE TO KIND OF EXPLAIN, UH, KIND OF HOW WE GOT HERE, WHETHER A CONTRACT LAPSED OR NOT, OR WHETHER WE HAD A FAILED VENDOR OR WHETHER WE HAD A PROLONGED PROCUREMENT BASED ON A VARIETY OF NUMBER OF REASONS.

SO WE'RE CHANGING THAT ACCOUNTABILITY PROCESS BY COMING TO GPFM AND LAYING IT ALL OUT AND GIVING EXPLANATIONS IN ADVANCE OF IT, SHOWING UP ON YOUR COUNCIL AGENDA.

AND THAT'S WHAT I'M TRYING TO ACCOMPLISH FOR YOU TODAY.

SO TO YOUR QUESTION RELATED TO HOW ARE WE TRACKING THESE ITEMS? WE ARE, UH, ARE WE PERFECT? NO.

WHAT WE RUN INTO IS THERE GONNA BE EXAMPLES? THERE ARE GONNA BE TIMES WHERE WE DON'T MEET THE MARK OR THERE'S SOMETHING EXTRAORDINARY THAT'S TAKEN PLACE THAT HAS PUT US IN A POSITION LIKE HVAC WHERE WE STILL NEED THE SERVICES.

WE GET CALLS ON A REGULAR BASIS DURING THE SUMMER WHERE PEOPLE ARE SAYING, CAN YOU COME RIGHT NOW? THIS IS UNACCEPTABLE.

WE DON'T WANT TO CLOSE FACILITIES, WE DON'T WANT LIBRARIES OR RECREATION CENTERS.

RIGHT? SO I'M, I'M NOT TALKING ABOUT THAT.

RIGHT? BUT WHAT I'M GETTING AT IS, IS THAT WHEN, WHEN WE RUN INTO A POSITION WHERE WE DON'T HAVE AN ACTIVE CONTRACT ANYMORE BECAUSE WE EXPIRED ON TIME, OR WE HAVE EXPIRED BASED ON, ON FUNDING, WE STILL HAVE TO RESPOND.

AND THAT'S WHAT THE RATIFICATION PROCESS ADDRESSES.

OKAY.

SO, BUT WE'D LIKE TO HAVE FEWER OF THESE.

OKAY.

BUT, SO MY, MY, GO AHEAD.

SPECIFIC QUESTION, BECAUSE WE ARE RUNNING, WE'RE RUNNING SHORT ON TIME.

SURE.

IS SPECIFICALLY, WHAT IS THE MECHANISM IN PLACE TO ALERT A DEPARTMENT THAT THEY HAVE A CONTRACT DEADLINE.

IT'S, IT'S NOT RENEWABLE, IT'S GONNA END JANUARY 1ST, 2025.

SO AT WHAT POINT ARE THEY BEING NOTIFIED AND WHAT IS THE MECHANISM THAT IS CREATING THAT NOTIFICATION TO THEM? IS THERE A NOTIFICATION HAPPENING? YOU, YOU SET IT CITY COUNCIL THAT THERE WAS A NOTIFICATION.

I'M, I'M GUESSING THERE'S NOT THOUGH.

SO LET, LET ME GO ABOUT IT THIS WAY.

SO, UH, AS FAR AS CONTRACT MANAGEMENT IS CONCERNED, IF YOU'RE A SINGLE DEPARTMENT LIKE THE DW, AND THIS IS ABOUT THEIR CHEMICALS FOR FLUORIDE OR WHATEVER, THEY ACTUALLY HAVE INTERNAL PROCESSES IN THEIR DEPARTMENT THAT MONITOR THEIR SPEND.

OKAY.

SO, SO IF THERE'S SOME ACCELERATION, SO LEMME JUST ASK, ASK YOU THIS.

SO THERE'S AN EXTERNAL AND, AND INTERNAL PROCESSES THAT ARE IN OPS.

ARE YOU TELLING ME EVERY SINGLE DEPARTMENT IS DOING THEIR OWN CONTRACT MANAGEMENT FOR PROCUREMENT? SO WHEN YOU ARE THE RECEIVER OF THE SERVICE, YOU ACTUALLY MANAGE AND MONITOR THE WORK PERFORMED BY THE VENDOR.

YOU APPROVE THE INVOICES AND YOU PROCESS.

OKAY, BUT I JUST NEED A YES OR NO.

YOU'RE TELLING ME I AM, I'M IN THIS CASE THERE'S TWO FOR LIBRARY.

YES, MA'AM.

I'M THE DIRECTOR OF LIBRARY SERVICES.

ARE YOU TELLING ME EVERY CONTRACT THAT I HAVE, I'M SUPPOSED TO KNOW WHEN THAT CONTRACT IS GONNA EXPIRE?

[01:25:01]

THAT IS CORRECT.

IT'S NOT HAPPENING IN PROCUREMENT.

SO IT'S A, IT'S A TWO-WAY STREET.

RIGHT.

SO AS THEY ENGAGE, IS IT HAPPENING IN PROCUREMENT? SO PART OF THE PROCESS YES.

IT'S HAPPENING IN PROCUREMENT.

THAT IS CORRECT.

SO PROCUREMENT'S GONNA NOTIFY ME THEN THAT MY CONTRACT'S GONNA EXPIRE.

IT'S A, IT'S A TWO-WAY STREET IS WHAT I'M TRYING TO EXPLAIN TO YOU BECAUSE, OKAY, SO THERE ARE THINGS AS, I'M JUST GONNA PAUSE AND SAY THIS HERE.

COULD WE HAVE A VERY THOROUGH BRIEFING THAT EXPLAINS IF THIS IS REALLY HAPPENING? BECAUSE LIKE WE'RE HAVING THIS SAME EXACT CONVERSATION.

YEAH.

I DON'T THINK WE'RE GETTING IT.

AND THEN IT'S, YOU MAY JUST NOT HAVE ALL THE INFORMATION BECAUSE I'M NOT, I'M CONFUSED.

NO, I GET YOU.

LEMME CITE AN EXAMPLE.

OKAY.

SO WE HAVE SOME CONTRACTS THAT EXPIRE BY FUNDING.

YOU AUTHORIZE A $5 MILLION CONTRACT.

OPS MAY HAVE NO IDEA THAT THIS DEPARTMENT NEEDS TO SPEND $4 MILLION NEXT WEEK.

IT'S A THREE YEAR AGREEMENT.

THE TERM IS STILL GOOD, BUT IT'S OUT OF FUNDS BECAUSE THEY HAD SOME EXTRAORDINARY PROJECT OR SOME EMERGENCY THAT TOOK PLACE.

ANOTHER CONTRACT IS EXPIRING BECAUSE THE FUNDS ARE GONE.

OPS DOESN'T TRACK THAT.

THEY CAN'T TRACK THAT.

THE DEPARTMENT, IT'S THEIR JOB TO BE MONITORING THEIR USE OF WHATEVER CONTRACTS THAT WE HAVE SO THAT THEY KNOW WHEN TO HELP TRIGGER A NEW PROCUREMENT.

THAT'S THE CONTRACT SPEND, RIGHT? THE PORTION THAT YOU'RE TALKING ABOUT IS THE ACTUAL LAPSE OF A DATE.

AND THERE ARE MULTIPLE MECHANISMS BY WHICH WE CAN TRACK AND BE WARY OF A DATE OF A CONTRACT EXPIRING.

OKAY.

SO BRITA IS IN LINE OF SIGHT.

WE CAN ALSO TRACK THE DOLLARS BECAUSE IT'S RIGHT ON OUR CHECKBOOK.

I MEAN, THIS IS OPEN SOURCE DATA THAT WE HAVE AND THIS SOUNDS LIKE AN AMAZING PROJECT IF OUR CITY MANAGER WANTED TO ASSIGN IT TO OUR DATA QUEEN.

SO I JUST THINK A LOT MORE INFORMATION NEEDS TO BE TIED TOGETHER.

I THINK PROBABLY OUR DEPARTMENTS ARE OPERATING BLINDLY IN THIS AREA.

I THINK PROCUREMENT'S PROBABLY OPERATING BLINDLY, BUT BOTH OF THEM COULD KNOW THIS INFORMATION SO EASILY BECAUSE WE HAVE NOT PUT ANY KIND OF, UM, AUTOMATION BEHIND IT.

THIS, THIS SHOULD BE A NO BRAINER.

THEY SHOULD LOG ON EVERY DAY SAYING YOU HAVE 30 DAYS, YOU HAVE 20 DAYS, YOU HAVE 10 DAYS UNTIL YOU'RE GONNA LOSE YOUR WINDOW TO GET A PROCUREMENT GOING.

CERTAINLY.

NOW YOU, NOW YOU ONLY HAVE THREE, THREE MONTHS LEFT ON THIS CONTRACT.

I MEAN, TO, TO YOUR POINT, MS. SISON, I AGREE WITH YOU.

SO WE, WE USE BONFIRE FOR OUR SOLICITATIONS.

UH, WE HAVE A SALES FORCE, UH, THAT WE'VE IMPLEMENTED AND WE'RE ACTUALLY WORKING BEHIND THE SCENES NOW, UH, CROSS DEPARTMENTAL EXERCISE THAT'S ACTUALLY INVOLVING MULTIPLE OTHER DEPARTMENTS IN THE CITY WHERE WE'RE WORKING ON ACTUAL DASHBOARD THAT WILL ALLOW EVERYBODY, UH, THE VISIBILITY TO BE ABLE TO TRACK JUST THAT.

AND WE'LL BE COMING FORWARD TO COUNCIL WITH SOME ADDITIONAL INFORMATION ON OUR PROGRESS FOR PROCUREMENT.

BUT WE'VE GOT SOME WAYS TO GO.

BUT I WOULD ALSO SUGGEST THAT WE'VE MADE SOME IMPROVEMENTS AS WELL.

THIS SOUNDS LIKE IT'S 1950 TO ME.

I'M SORRY.

I FEEL LIKE THIS IS ALL KNOWN DATA AND I, I ENCOURAGE YOU, I I BEG YOU TO TRY TO FOCUS ON GETTING THIS TO BE AN AUTOMATED PROCESS WITH REMINDERS.

AND THEN IF A DEPARTMENT HEAD DOESN'T ACT ON RENEWING A CONTRACT, WELL THAT OUGHT TO GO TO THEIR SUPERVISOR.

'CAUSE IT MIGHT BE WE JUST WANNA GO TO A DIFFERENT VENDOR AND WE DON'T WANNA DO IT AGAIN, OR WE DON'T NEED THAT SERVICE ANYMORE.

BUT IT MIGHT BE THAT PERSON'S NOT DOING THEIR JOB OR THEY GOT MOVED TO A DIFFERENT JOB AND IT DIDN'T GET UPDATED WHERE THEY'RE SUPPOSED TO GO, BUT SOMETHING'S NOT RIGHT.

AND WHEN YOU SEE THREE DIFFERENT, UM, RATIFICATIONS AFTER WE JUST HAD THIS CONVERSATION AT FULL COUNSEL, I, I THINK THIS IS A SIGN FOR YOU THAT IT NEEDS BETTER MANAGEMENT.

UN UNDERSTOOD.

THE, THE ONLY OTHER THING THAT I WOULD ADD THERE IS THAT THESE DATES BACK TO 2023.

SO SOMETIMES ITEMS LIKE THIS THAT WORK THEIR WAY THROUGH THE SYSTEM, RIGHT? THEY'RE, THEY'RE A PART OF THE LEGACY OF WHAT WE'RE STILL WORKING THROUGH AND DEALING WITH.

IT'S, IT'S OUR GOAL FOR FEWER OF THESE TO COME THIS DIRECTION.

AND WHEN THEY DO, WE EXPECT YOU TO HOLD US ACCOUNTABLE.

THAT'S WHY, THAT'S WHY I'M HERE TODAY.

AND, AND, AND I UNDERSTAND COMPLETELY.

SO PART OF THAT GOAL WOULD BE A BRIEFING, AND IT'S NOT, I, I'LL POST IT JUST YET, BUT WE'RE WORKING ON A BRIEFING THAT'LL BE COMING, THE COUNCIL THAT'LL ACTUALLY SPEAK MORE DIRECTLY TO SOME OF YOUR CONCERNS ABOUT HOW DO WE FLAG THESE THINGS? WHO'S RESPONSIBLE FOR WHAT AND WHAT ACTIONS WILL STAFF TAKE.

OKAY.

WELL, I HOPE THE WORD AUTOMATION WILL BE USED MANY, MANY TIMES IN THAT BRIEFING.

THANK YOU.

DULY NOTED.

YES, MA'AM.

THANK YOU.

MR. RESENDEZ.

ANYTHING, UH, MOVING ON TO ITEM H.

ANY QUESTIONS, MS. GUNDERSON? UM, THANK YOU.

I HAD ASKED SPECIFICALLY ON THIS ITEM IF WE COULD GET ATTENDANCE FROM, UH, COUNCIL ELECTED OFFICIALS AS WELL AS

[01:30:01]

STAFF FOR THESE ORGANIZATIONS.

IS THAT ABLE TO BE PROVIDED? DID, DID YOU SAY ATTENDANCE? UHHUH.

.

OKAY.

SO WE DID INCLUDE IN THE, UH, MEMO, UH, THE PARTICIPANTS, THE NUMBER OF INDIVIDUALS WITH THAT ARE COVERED BY YEAH, BUT IS ANYBODY GOING? PARDON? BUT IS ANYBODY GOING? SO JUST BECAUSE THE DEPARTMENT OF AVIATION ARE THE PARTICIPANTS FOR THE AMERICAN ASSOCIATION ASSOCIATION OF AIRPORT EXECUTIVES, WE DON'T KNOW IF ANYBODY ACTUALLY GOES TO THOSE.

OKAY, GOTCHA.

MEETINGS.

SO SO YOU WANT MORE UTILIZATION INFORMATION.

YEAH, ATTENDANCE RECORDS.

SO SOME OF THESE HAVE REPORTS OF ATTENDANCE.

UM, YOU KNOW, I, I THINK THAT THAT WOULD BE AN IMPORTANT DECISION POINT.

OKAY.

IF IT'S NOT IMPORTANT ENOUGH FOR US TO GO, THEN WE MIGHT NOT WANNA BE MEMBERS.

WELL, AND A LOT OF THESE ARE NOT JUST FOR THE POINT OF GOING TO A CONFERENCE.

THEY, THEY'RE ACCESSIBLE.

UH, AND DR.

, I'M SORRY, BUT MIGHT WANT TO TALK SOME ABOUT GARTNER AS AN EXAMPLE.

YES, THEY PARTICIPATED IN CONFERENCES, BUT THERE'S THE OPPORTUNITY TO USE THAT TYPE OF MEMBERSHIP, NOT GOING ANYWHERE CONSULTING.

UM, SO IF YOU'VE USED IT AS A RESOURCE, THEN I WOULD INCLUDE THAT AS SORT OF AN ATTENDANCE ISSUE.

OKAY.

SO ATTENDANCE ISN'T JUST AT ATTENDING A CONFERENCE FOR SOMETHING, BUT YOU'RE WANTING TO KNOW ACTUAL U NUMBER OF PEOPLE THAT ARE ACCESSING THE MEMBERSHIP AND RECEIVING A SERVICE.

IS THAT RIGHT? OKAY.

ALRIGHT.

SORRY, GO AHEAD.

DO YOU WANT ME TO SPEAK TO THAT, MA'AM? IF YOU'D LIKE TO.

WELL, WE HAVE, WE HAVE SOME INFORMATION PARTICULARLY ABOUT THE GARTNER ONE.

RIGHT? SO WHAT WE KNOW IS THAT WE'VE LEVERAGED OVER 1200 DIFFERENT TOOLS.

UM, IT'S HAD ACTIVE PARTICIPATION WITH OVER A HUNDRED INQUIRY CALLS WITH ANALYSTS.

UM, AND WE TAKE A LOOK EVERY YEAR AT WHO'S USING IT AND KIND OF MOVE THINGS AROUND TO MAKE IT HAPPEN.

UM, WE ALSO USE IT FOR CONTRACT ASSESSMENT CALLS.

AND, UH, ONE OF THOSE IN PARTICULAR THAT WE DID THIS PAST YEAR RESULTED IN A $20 MILLION SAVINGS OVER FIVE YEARS FOR THE CITY.

SO I CAN SPEAK TO THAT ONE THAT WE, UH, USE IT EXTENSIVELY.

AND IF THAT'S THE KIND OF INFORMATION YOU WANT, WE CAN, UH, WORK WITH DEPARTMENTS TO GET THE OTHER ANSWERS.

WELL, I I'LL JUST GIVE YOU AN EXAMPLE OF ONE, RIGHT? UM, HOW ABOUT DALLAS REGIONAL MOBILITY COALITION? IT USED TO BE ONLY ONE PERSON WENT, THEN SUDDENLY, TWO PEOPLE WENT.

SOMETIMES WE'LL HAVE THREE.

WE'RE VERY ACTIVE MEMBERS OF THAT.

THE PEOPLE WHO ATTEND THINK IT'S BEEN HELPFUL AND USEFUL.

THERE'S SOME OTHERS ON HERE THAT I'M NOT SURE ANYBODY ACTUALLY GOES AT ALL.

AND WE'RE, WE'RE PAYING, YOU KNOW, SIGNIFICANT MONEY TO, SO I AM CONCERNED ABOUT THAT.

I DON'T KNOW AS MUCH ABOUT THE STAFF ONES, SO YOU SHOULD TELL US.

BUT ON THE ELECTED ONES, I DO HAVE A SENSE THAT WE'RE NOT USING ALL OF THESE.

THANK YOU.

YOU'RE WELCOME.

AND THIS IS, UH, IT'S AN ACTION ITEM FOR NEXT WEEK.

SO WE WILL ADD TO WHAT WE PROVIDED IN THE MEMO TO GO OUT ON FRIDAY.

UH, OKAY.

TO THE FULL, TO THE FULL COUNSEL, RIGHT? YES.

YES MA'AM.

OKAY.

YES MA'AM.

YEP.

AND, AND MINE WAS MORE ALIGNED WITH, UH, I PULLED THE ITEM LAST TIME BECAUSE OF A CERTAIN WORDING IN THE LEGISLATIVE THAT HAS BEEN BA BASICALLY TIGHTENED UP A LITTLE BIT.

BUT I AGREE WITH WHAT MENDELSON MS. MENDELSON IS SAYING IS, YOU KNOW, WHAT'S THE COST BENEFIT ANALYSIS, YOU KNOW, ANYWAY, SO WHAT'S THE ROI AND, AND SO ON.

SOME OF THEM, THERE'S REALLY GOOD WAY WE CAN SHOW THAT THE GARTNER ONE AS AN EXAMPLE, UH, DR.

UH, BRIAN IN ITS HAS TALKED TO ME ABOUT THE, THE VALUE THAT HE'S RECEIVED FROM THEIR ASSISTANCE THROUGH CONTRACT NEGOTIATIONS AS AN EXAMPLE.

SO SOME OF THEM ARE EASY TO GET THAT KIND OF INFORMATION, BUT WE WILL, WE WILL CONTINUE TO TRY TO IMPROVE THE MEMO, SEND IT TO FULL COUNSEL ON FRIDAY, HOPE TO GET ACROSS THE FINISH LINE NEXT WEEK STATEMENT.

THANK YOU.

OKAY.

ITEM I, UH, PROPOSING, UH, INCREASES IN THE REAL PROPERTY ACQUISITIONS.

OKAY.

SO I HAVE A QUESTION ON THAT ONE.

UM, SO MY QUESTION IS, IF YOU'RE INCREASING THIS, ARE YOU ALSO PROPOSING TO BE ABLE TO SHARE INFORMATION WITH US, MAYBE A MONTHLY MEMO OR A QUARTERLY MEMO THAT GIVES THE DETAILS OF THE COST, WHAT'S BEEN ACQUIRED WHERE, AND WHY? I MEAN, WE, WE'VE LARGELY UNANIMOUSLY SET AROUND THIS HORSESHOE THAT WE HAVE TOO MUCH PROPERTY.

AND SO WHEN YOU TELL ME THAT YOU'RE GONNA BE BUYING PROPERTY AND NOT EVEN BRING IT TO COUNCIL, THAT'S A LITTLE BIT CONCERNING.

SORRY, ASHLEY .

GOOD AFTERNOON.

ASHLEY EUBANKS FACILITIES AND REAL ESTATE MANAGEMENT COUNCIL MEMBER.

THIS ITEM IS TO HELP US, UM, INCREASE OUR EFFICIENCIES.

UM, RIGHT NOW, ANYTHING OVER 10,000, WE ARE HAVING TO COME TO COUNCIL.

AND SO WE'RE JUST TRYING TO

[01:35:01]

BE MORE EFFICIENT IN OUR PROCESSES.

AND THAT'S THE PURPOSE FOR THIS ITEM.

BUT QUITE A FEW OF THE THINGS THAT ARE COMING TO COUNCIL THAT ARE PROPERTIES ARE LOW VALUE.

RIGHT? YOU KNOW, YOU'VE GOT 20 SQUARE FEET THAT YOU'RE GIVING UP FOR THIS OR THAT YOU'RE BUYING FOR THAT.

SO I AGREE, I'M NOT SURE THAT, YOU KNOW, A WHOLE LOT OF GOVERNANCE IS NEEDED FOR, YOU KNOW, UH, AN ALLEY CURVE AND IT'S ADJOINING ANOTHER PROPERTY.

I, I AGREE WITH THAT, BUT I ALSO WANNA KNOW ABOUT IT.

AND SO HOW WOULD WE BE INFORMED THAT WE'RE ADDING ALL THESE NEW PROPERTIES IF IT'S NEVER COMING TO COUNCIL? SURE.

SO TYPICALLY THE ACQUISITIONS WE HAVE, THEY'RE GONNA BE TIED TO A PUBLIC PROJECT.

UM, WE COULD PROVIDE A MEMO EITHER AT THE END OF THE FISCAL YEAR TO LET YOU KNOW WHAT WE'VE ACQUIRED OVER THE ENTIRE YEAR FOR THAT PARTICULAR PUBLIC PROJECT, IF THAT IS SOMETHING THAT YOU WOULD LIKE FOR US TO DO.

OKAY.

WELL, I SUGGESTED MONTHLY AND YOU'RE SAYING ANNUALLY, .

SO, UM, YOU KNOW, AND WHAT I CAN, I COULD, I COULD, UH, SETTLE IT QUARTERLY, BUT QUARTERLY.

I DON'T THINK ANNUALLY IS GONNA BE SUFFICIENT.

WHAT I CAN TELL YOU, OVER THE LAST FISCAL YEAR, WE HAD APPROXIMATELY 60 ACQUISITIONS THAT ALL WENT TO COUNCIL 27, WELL, 16 OF THOSE WERE WITHIN THAT THRESHOLD OF 10,000 TO A HUNDRED THOUSAND.

SO IT WAS APPROXIMATELY 27% OF OUR TRANSACTIONS, UM, THAT WOULD BE AFFECTED PURSUANT TO THIS OIL EXCHANGE.

SOUNDS LIKE A GREAT MONTHLY REPORT, A GREAT, UH, QUARTERLY REPORT.

SURE.

THANKS.

THANK YOU.

ITEM JA COMMUNITY SURVEY.

OKAY.

I HAVE SOME FOR THIS TOO.

UM, THANK YOU.

SO A LOT OF DISCUSSION ABOUT COMMUNITY SURVEY LATELY.

SO I GUESS MY QUESTION IS, WE, WE, TWO YEARS AGO WE GOT THIS SURVEY AND WE HAD A VERY DETAILED BRIEFING AND A LOT OF DISCUSSION.

THERE'S SOME MEDIA ASSOCIATED WITH IT THAT MAYBE DIDN'T LIKE, MAKE THE CITY LOOK THAT GREAT.

THIS PAST YEAR WE DIDN'T HAVE A BRIEFING FOR THE FULL COUNCIL.

I THINK WE KNOW WHY, BECAUSE THE RESULTS WERE EVEN WORSE.

AND SO MY QUESTION IS, HOW ARE WE USING THE SURVEY? WE KNOW HOW WE'RE NOT GONNA USE THE SURVEY, RIGHT? SO WE'RE NOT GONNA USE IT WITH PROP T.

BUT HOW ARE WE USING THE DATA THAT WE'RE GETTING? AND I'M GONNA ALLOW CECILIA TO ANSWER THIS, BUT ALSO WANT TO SAY THIS PAST JUNE, WE WERE INTENDING TO BRIEF THIS LAST YEAR'S ON JUNE THE 19TH.

AND ISSUES WITH THE SCHEDULE WAS THERE WASN'T ENOUGH TIME OF THE COUNCIL AGENDA OR WHATEVER THE CASE WAS.

AND SO WE DISTRIBUTED IT BY MEMO.

IT WAS NOT BECAUSE WE DIDN'T WANNA BRIEF IT BECAUSE WE WERE PREPARED TO BRIEF IT.

SO I'LL JUST ALLOW CECILIA TO TALK ABOUT FUTURE USAGE.

THANKS JACK.

UM, CECILIA, SHE ASSISTANT DIRECTOR IN BUDGET AND MANAGEMENT SERVICES.

UM, WE ARE LOOKING AT, UM, WAYS TO EMBED THE COMMUNITY SURVEY RESULTS AND OUR PERFORMANCE REPORTING.

UM, WE'RE CURRENTLY WORKING WITH DEPARTMENT DIRECTORS ON WAYS TO TIE AND ALIGN OUR, UM, PERFORMANCE MEASURES INTO MORE MEANINGFUL MEASURES.

UM, AND SO ONE OF THE WAYS THAT WE'RE LOOKING AT THAT IS DUE TO USE OF THE COMMUNITY SURVEY DATA, I THINK IT MIGHT NOT BE DIRECTLY ALIGNED.

SO SPECIFICALLY HOMELESSNESS ALWAYS COMES UP IN THE TOP THREE OF CONCERNS, UM, THAT RESIDENTS HAVE THAT WE'RE NOT ADDRESSING IT OR IT NEEDS TO BE ADDRESSED.

AND I, I STRUGGLE TO FIND WHERE WE HAVE CHANGED WHAT WE'RE DOING THIS YEAR.

AND I FEAR THE NUMBERS WILL BE EVEN WORSE.

UM, THERE'S, THERE'S A STATEMENT ON HERE ON PAGE FIVE.

IT SAYS SIMILAR QUESTIONS ARE INCLUDED FOR BENCHMARKING PURPOSES, AND I'D LIKE TO SUGGEST THAT THE SAME QUESTION NOT SIMILAR SHOULD BE ASKED, LIKE THE EXACT SAME WORDING SO THAT WE REALLY CAN COMPARE APPLES TO APPLES.

AND AS MANY OF EXACTLY THE SAME QUESTIONS AS POSSIBLE SHOULD BE THERE SO THAT WE CAN SEE HOW WE'RE DOING.

UM, OKAY.

UM, I THINK WE GOT OUR, OH YEAH.

SO THE GOAL OF THIS TO GET FEEDBACK FROM OUR RESIDENTS.

I'M JUST GONNA SAY, I THINK WE GOT A LOT OF FEEDBACK FROM OUR RESIDENTS ON TUESDAY NIGHT, AND I, I THINK WE NEED TO REALLY POSSIBLY GO BACK OVER THIS SURVEY AS WE PREPARE FOR THE NEXT ONE AND SEE WHAT SPECIFICALLY ARE WE GONNA DO BASED ON THIS INFORMATION.

'CAUSE I DON'T THINK WE'RE DOING IT.

THANK YOU.

SO, UM, AND THOSE ARE GOOD COMMENTS.

AND I MEAN, WHY CAN'T WE HAVE THIS AT FULL COUNT? I

[01:40:01]

GUESS BECAUSE THE YEAR'S OVER, I MEAN, WHY YOU DIDN'T BRING IT IN JUNE, BUT IT'S AT THIS COMMITTEE TODAY, WHY COULDN'T, AND WE'VE, WE'VE HAD MANY BRIEFINGS, LIGHT BRIEFING DAYS SINCE JUNE.

WHY CAN'T WE HAVE IT AT A FULL COUNCIL MEETING? YEAH.

UH, THAT'S INTERESTING QUESTION.

UH, MS. WYN, UH, WE, WE HAD OUR TIMELINE TO BRIEF IT TO COUNCIL BEFORE WE RELEASED THE BUDGET IN AUGUST.

UH, THE WORK WAS DONE.

UH, WE HAD IT QUEUED UP TO COME TO COUNCIL ON JUNE THE 19TH.

UH, THERE'S SOME SITUATION WITH THE, THAT BRIEFING DAY THAT WE DIDN'T, WE WILL HAVE A NEW BRIEFING AND THE TIMELINE GOING FORWARD WOULD BE TO BRING IT THE NEW BRIEFING TO YOU IN JUNE OF NEXT YEAR IN ADVANCE OF US DOING THE, UH, NEXT BUDGET.

SO WE CAN GO BACK IF YOU WOULD LIKE TO BRING TO THIS COMMITTEE TO GIVE YOU THE RESULTS FROM THE JUNE, WE CAN DO THAT.

WELL, I MEAN, IT, IT, WE'RE ABOUT TO HAVE A RETREAT IN FEBRUARY.

I MEAN IT, AND WE KNOW WE JUST HAD A ELECTION AND WE HAVE THIS INFORMATION.

IT, YOU KNOW, I'M JUST WONDERING WHY, WHY DO WE PUT IT ON IT JUST, ANYWAY, I'M JUST KIND OF CURIOUS ON ARE Y'ALL USING THIS INFORMATION? THE INFORMATION FROM THE, UH, IS REVIEWED, IT'S DISCUSSED AS WE'RE DEVELOPING THE BUDGET.

WE DO USE IT IN THAT WAY.

I'M NOT GONNA SAY THAT WE ARE ABLE TO ADDRESS EVERY SINGLE, UH, CONCERN THAT'S VOICED IN THE, UH, SURVEY RESULTS.

MM-HMM.

.

BUT IT DOES PROVIDE, UH, GUIDANCE AND A VERY USEFUL INFORMATION AS WE ARE DEVELOPING THE BUDGET.

AND THAT'S WHY FOR THE LAST SEVERAL YEARS WE'VE TRIED TO REFRESH IT EVERY YEAR, HAVE THAT AVAILABLE, TRY TO BRIEF IT TO, UH, COUNCIL IN JUNE BEFORE WE RELEASE THE BUDGET IN AUGUST.

OKAY.

UH, BUT IF, IF Y'ALL WANT US TO BRING IT TO THIS COMMITTEE, THE, THE PAST ONE, WE ABSOLUTELY CAN DO THAT.

OKAY.

I, IT, IT IS JUST THAT IT'S SAD THAT, I MEAN, BECAUSE I REMEMBER WHEN WE HAD THIS LAST SUMMER YEAH.

AND IT WAS VERY THOUGHTFUL AND IT'S GOOD WORK.

IT'S GOOD INFORMATION.

I, I JUST THINK THAT IT'S SAD THAT WE KIND OF DO IT IN A MEMO FOR FIVE PEOPLE HERE.

AND THAT, THAT'S JUST MY THOUGHT BECAUSE I MEAN, THERE'S BEEN A LOT OF WORK PUT INTO IT AND, AND WE GET A LOT OF COMMUNITY INPUT FROM A LOT OF DIFFERENT WAYS.

BUT THIS ONE IS PREPARED AND DONE AS A RANDOM SAMPLE THAT GIVES YOU STATISTICALLY SIGNIFICANT INFORMATION.

RIGHT.

AND I, I THINK THERE'S REAL VALUE I DO TOO IN THE ORGANIZATION DOING THEM.

UM, 'CAUSE IT'S DIFFERENT THAN, YOU KNOW, SOME OF OUR ONLINE SURVEYS OR QUESTIONNAIRES THAT YOU CAN BASICALLY STEP THE BALLOT BOX WHEN YOU DO THAT.

MM-HMM.

.

BUT THIS IS A TRUE RANDOM SENTENCE BECAUSE WHEN WE WERE AT DISD AND MR. ASEN, AS YOU MAY REMEMBER THIS, WE USED TO HAVE CLIMATE SURVEYS AND WE WOULD GO NOT JUST OVER THE DISTRICT, BUT LOOK AT CAMPUS AND THEN SEGMENT IT OUT WITH PARENTS VERSUS TEACHERS.

AND IT'S VERY VALUABLE INFORMATION WHEN YOU CAN DIG INTO IT.

AND IT NEEDS TO BE, NEEDS TO SEE THE LIGHT OF A DAY.

I MEAN, IT DOESN'T NEED TO JUST SIT WITH YOU GUYS.

I THINK IT NEEDS TO BE DISCUSSED OPENLY.

AND TO MS. MENDELSON'S COMMENTS, WE HAD THAT OPEN DISCUSSION ON TUESDAY AND WE MAY NEED TO CONTINUE THAT DISCUSSION, BROTHER.

SO THAT, THAT'S JUST MY THOUGHTS.

THIS IS GOOD WORK THAT Y'ALL HAVE DONE.

LET'S NOT JUST PUT IT IN A MEMO AND, AND I MEAN, LET'S USE IT.

YEAH.

OKAY.

UNDERSTOOD.

SO I REALLY APPRECIATE YOUR COMMENTS, COUNCIL MEMBER BLACKMAN.

AND I DO THINK THIS IS A TIME THAT WE CAN LOOK AT THIS AND OF COURSE, CORRECT, YOU KNOW, WHAT YOU'RE SUGGESTING, WHICH I THINK IS SPOT ON, IS REALLY RESPECTFUL OF WHAT THE RESIDENTS ARE SAYING TO US.

AND I, I LOVE YOUR IDEA OF BRINGING IT BACK AND WHETHER THAT'S, YOU KNOW, NOVEMBER OR DECEMBER, I THINK WE SHOULD.

AND DEFINITELY BEFORE A RETREAT, UM, HAVING ANOTHER LOOK.

I, I RECOGNIZE THAT WHAT YOU'RE PUTTING ON HERE IS PREPARING FOR THE NEXT ONE, BUT THAT'S A LONG WAYS OFF BEFORE WE'RE GONNA GET THAT INFORMATION.

AND WE MIGHT NEED SOME RECALIBRATION RIGHT NOW.

MM-HMM.

.

SO THANK YOU.

SO I'LL, I'LL DISCUSS YOUR COMMENTS WITH MS. TOLBERT AND SEE HOW, UH, WE PROCEED.

BUT THANK YOU FOR THE FEEDBACK.

MM-HMM.

.

THANK YOU.

AND FINAL ITEM K.

INSURANCE AUTHORIZATIONS FOUR 14.

THIS MEETING, UH, THE GPFM COMMITTEE IS ADJOURNED.

Y'ALL HAVE A GOOD THANKSGIVING HOLIDAY.