[00:00:01]
>> GOOD AFTERNOON, AND WELCOME TO THE NOVEMBER 4,
[Finance Committee on Novemeber 4, 2025.]
2025, MEETING OF THE FINANCE COMMITTEE.WE HAVE A QUORUM OF MY COLLEAGUES HERE.
THANK YOU FOR BEING ON TIME. SORRY. I WAS A COUPLE OF MINUTES LATE TODAY.
GO AHEAD AND CALL THIS MEETING TO ORDER.
FIRST ORDER OF BUSINESS IS THE MINUTES FROM OCTOBER 21, 2025. DO YOU HAVE A MOTION?
>> ALL THOSE IN FAVOR SAY AYE.
>> ANY OPPOSED? MOTION PASSES.
THE FIRST BRIEFING ITEM, STAFF CAN GO AHEAD AND COME ON DOWN IS STATE OF CITY HALL, BRIEFING ITEM A.
AND WE HAD PREVIOUSLY ASKED THE ASSISTANT CITY MANAGER, DONSEL GIBSON, TO NOT GO THROUGH THE POWERPOINT AGAIN.
I KNOW HE'S LOOKING AT ME LIKE, WHY AM I EVEN COMING UP HERE? [LAUGHTER] BUT I WANTED TO BRING UP STAFF IN CASE THERE WERE ANY QUESTIONS REMAINING FROM YESTERDAY'S JOINT BRIEFING.
AND AT THIS POINT, I WILL JUST, ACM GIBSON, DO YOU RECALL ANY FOLLOW-UP QUESTIONS THAT WE HAD THAT YOU WERE PLANNING TO BRING TO US TODAY, OR WOULD YOU JUST LIKE US TO GO INTO QUESTIONS AT THE HORSESHOE? DO YOU HAVE A PREFERENCE?
>> THERE'S A COUPLE OF THINGS I WOULD LIKE TO HIGHLIGHT THAT I DIDN'T THINK WE SPENT ENOUGH TIME ON YESTERDAY, AND THAT HAD MORE TO DO, MAYBE, ON MY PART. A COUPLE OF THINGS.
ONE, WE'RE VERY COMFORTABLE WITH THE ESTIMATES THAT WE WERE GIVEN THAT WE PROVIDED.
AND I THINK WE SHARED WITH COUNSEL HOW WE WERE ABLE TO DEVISE THOSE AND ENSURE THERE'S A RANGE, BUT WE'RE COMFORTABLE WITH THE RANGE AND HOW WE PRESENTED IT.
I THINK WHAT'S IMPORTANT IS ON SLIDES 39 AND ON SLIDE NUMBER 40.
THE ANALYSIS THAT'S DONE THERE, AND I DON'T KNOW IF THEY CAN PULL UP SLIDE 39 OR 40, PLEASE.
SORRY, I'LL GIVE ONE A SECOND TO.
THANK YOU FOR THAT. I THINK THE EMPHASIS THAT I WANTED TO LEAVE HERE IS WE LEFT MULTIPLE SCENARIOS.
SO CONTINGENT UPON WHAT LEVEL OF CONFIDENCE THAT ANYBODY HAS IN THE NUMBERS THAT THE THREE DIFFERENT SCENARIOS THAT WE'RE, GIVEN AND IN THE [INAUDIBLE] EXCUSE ME.
>> CAN WE GET SOME HELP FOR THESE FOLKS? I THINK THERE'S SOME CONFUSION UP THERE.
IF THERE'S SOMETHING ELSE GOING ON.
WE'RE JUST GOING TO PAUSE FOR A MINUTE HERE.
>> I THINK WE CAN CONTINUE, GO AHEAD.
>> SORRY ABOUT THAT INTERRUPTION THERE.
I THINK WHAT I WAS TRYING TO EMPHASIZE WAS THAT THE ANALYSIS THAT'S ON SLIDE 39 AND SLIDE 40 WAS TO SAY, HEY, LISTEN, THERE'S VARIOUS SCENARIOS THAT YOU NEED TO BE ABLE TO THINK THROUGH, A RANGE OF COSTS.
AND THERE'S JUST THINGS THAT THERE'S NO WAY TO KNOW THAT WE WERE SHARING WITH YOU YESTERDAY.
WE DON'T WANT US TO PROVIDE YOU WITH A NUMBER AND THEN COME BACK WITH $100 MILLION WORTH OF CHANGE ORDERS, BECAUSE IT LITERALLY COULD SPAN THAT MUCH OF A RANGE.
AND SO WE'RE JUST TRYING TO BE CAREFUL ABOUT THAT IF YOU ACTUALLY WANT STAFF TO GO AND FIX THE ENTIRE BUILDING.
IN DOING THAT, THE ANALYSIS WAS ASKED FOR BY THE FINANCE COMMITTEE.
I KNOW WE HAD THE JOINT MEETING WITH THE ECONOMIC DEVELOPMENT COMMITTEE YESTERDAY, BUT THE FINANCE COMMITTEE SAYS, GIVE US SOME ROUGH ORDER OF MAGNITUDE ABOUT WHAT WE WOULD BE PAYING IF WE WERE TO ACTUALLY GO WITH OPTION 3.
AND THAT WAS A DEPICTION OF WHAT WAS REALLY CONDENSED AND TRIED TO BE SHOWN ON BOTH OPTION A AND OPTION B.
AND THE NUMBERS ARE FAIRLY SIZABLE.
IT'S JUST SOMETHING THAT WE NEED TO MAKE SURE THAT WHILE WE'RE WALKING THROUGH THIS AND WE'RE HAVING THIS CONVERSATION, THAT THIS SLIDE AND THE ANALYSIS, WHETHER YOU MOVE THE RANGE OR NOT, THIS IS THE WAY TO LOOK AT IT WHEN YOU GUYS ARE MAKING YOUR DECISION.
THAT'S WHAT I WANTED TO BE ABLE TO LEAVE YOU WITH IS THAT THIS IS THE TYPE OF ANALYSIS THAT, WHEN YOU'RE THINKING THROUGH IT, THAT STAFF IS PRESENTING TO HELP FORMULATE THAT DECISION.
YOU'VE GOT TWO DIFFERENT OPTIONS, A LEASE OPTION A AND LEASE OPTION B, WHICH IS CONTINGENT UPON THE TYPE OF REAL ESTATE THAT THE COUNCIL DECIDES THAT THEY WANT STAFF TO GO LEASE FOR A NEW LOCATION, POTENTIALLY.
[00:05:02]
>> THANK YOU FOR THAT ADDITIONAL CONTEXT.
I'M GOING TO AT THIS POINT, JUST OPEN IT UP TO MY COLLEAGUES FOR QUESTIONS.
I KNOW THAT COUNCIL OR CHAIRWOMAN WILLIS HAS A COUPLE, WE'LL START WITH HER.
>> THANK YOU. JUST BASED ON SOME OF THE COMMENTS WE SEE IN THE PUBLIC, THERE'S A LITTLE BIT OF HYPERBOLE ABOUT NOW THE COST OF INCREASED TO $595 MILLION THAT IT WOULD TAKE TO REPAIR CITY HALL.
AND SO YOU HAD HIGHLIGHTED THAT, SO WHY IS IT IMPORTANT FOR US TO BE PRESENTED WITH A RANGE?
>> I THINK THE EASIEST ANSWER TO THAT IS THAT WHEN YOU DO CONSTRUCTION, WHEN YOU TAP INTO WALLS IN A 47-YEAR-OLD-PLUS BUILDING THAT WAS DESIGNED AND CONSTRUCTED SPECIFICALLY FOR THIS PURPOSE FOR A GOVERNMENT SETTING, THAT THERE'S JUST UNKNOWNS THAT WHEN YOU BRING CONTRACTORS IN AND THEY GIVE YOU THEIR BEST ESTIMATES.
THERE'S JUST THINGS THAT WE'RE NOT GOING TO BE AT ON.
AND I KNOW COUNSEL WANTS A VERY FIRM SET OF NUMBERS.
I THINK WHAT WE SHARED YESTERDAY IS THAT THERE'S A SERIES OF NUMBERS IN THE BRIEFING THAT WE PROVIDED THAT I CALLED YESTERDAY SOMEWHAT SHOVEL-READY.
THEY'RE VERY RECENT ESTIMATES, RIGHT AT AROUND $44 MILLION, OF THINGS THAT ARE VERY RECENT ESTIMATES THAT IF WE WERE TOLD FIX CITY HALL, THOSE THINGS WOULD BE VERY RECENT NUMBERS THAT WE WOULD BE GOING ON.
I THINK THE CHALLENGE FOR US IS EVEN ON THE SECOND BUCKET THAT I WAS SHARING WITH YOU GUYS, WHERE WE HAD PREVIOUS ESTIMATES THAT WE ADJUSTED TO TODAY'S DOLLARS.
EVEN IF WE GO BACK 20 YEARS OR 10 YEARS TO THAT ESTIMATE, AND YOU JUST USE THAT NUMBER, THOSE ARE SIGNIFICANT DOLLARS AS WELL.
AND THE THOUGHT IS, WAS COUNSEL ASKING US NOT TO ADJUST FOR TODAY'S DOLLARS, OR IS THE PRESUMPTION THAT THINGS WON'T COST MORE THAN SOME ESTIMATE THAT MAYBE WE GOT TEN OR 15 YEARS AGO? THAT WAS THE STRUGGLE THAT WE HAD.
WE'RE JUST TRYING TO PRESENT THE MOST FACTUAL INFORMATION POSSIBLE.
WE'RE TRYING TO PROVIDE YOU WITH THE UNDERSTANDING OF HOW WE WERE ABLE TO DEVELOP THESE NUMBERS, AND WHILE WE FEEL COMFORTABLE STANDING BEHIND THEM.
>> AND THE NUMBER YOU GAVE, 44 MILLION, ACTUALLY SEEMS LOW ON THOSE THAT HAVE FAIRLY CURRENT ESTIMATES.
I WAS TRYING TO ADD THIS UP, AND I WAS AT 125 MILLION WITHOUT EVEN GETTING TO SOME OF THE FINAL ITEMS. IT SEEMED LIKE THEY MAY HAVE BEEN AS RECENT AS 2020 OR SOMETHING LIKE THAT.
BUT I THINK IT'S IMPORTANT TO UNDERSTAND THIS RANGE JUST LIKE YOU MIGHT, IF YOU'RE AT YOUR HOME LOOKING AT REPAIRS, UNDERSTANDING WHAT THE COST COULD BE IN THE MARKETPLACE, THE HIGH END, AND THE LOW END, BECAUSE THE REALITY IS IF WE GET INTO SOMETHING, IT'S GOING TO COST MORE, WE NEED TO HAVE BEEN AWARE OF THAT.
THAT COULD BE THE POSSIBILITY.
>> COUNSEL WOMAN, I'M SO GLAD YOU BROUGHT THAT UP.
BRIAN AND I WERE ACTUALLY TALKING ABOUT THAT RIGHT BEFORE THE MEETING.
JUAN, CAN YOU GO TO SLIDE? I BELIEVE IT'S 8. I'M SORRY, JUAN, I GOT YOU JUMPING AROUND THERE.
IF YOU WERE TO TAKE OUT, I THINK A LOT OF OUR SWING NUMBER, AS SOMEONE WOULD SUGGEST, BECAUSE IT HAS THE WIDEST RANGE, IS THE GARAGE STRUCTURAL REPAIRS.
AND SO WHEN BRIAN AND I WERE TALKING IN THE BACK RIGHT BEFORE THIS MEETING, JUST TAKE THAT OUT.
AND IF YOU TAKE THAT OUT, YOU'RE RIGHT AT THE $125 MILLION YOU WERE TALKING ABOUT THERE ON THE LOW RANGE, AND YOU'RE RIGHT AT $200 MILLION ON THE HIGH RANGE IF SOMEONE ASSUMES THAT THERE IS ABSOLUTELY NOTHING STRUCTURALLY WRONG WITH THE GARAGE.
LET'S JUST TAKE IT OUT. STAFF SAYS, HEY, YOU KNOW WHAT? THERE'S NOTHING WRONG. WE'VE OBSERVED NO ISSUES.
YOU JUST TAKE THAT LINE ITEM OUT AND REDO THE MATH.
THERE'S STILL SOME SIGNIFICANT DOLLARS THERE THAT YOU CAN THEN ASSESS AGAINST THE SLIDES ON 39 AND 40.
>> AND THEN, YESTERDAY, I STATED, I THINK WHAT WE'VE GOT TO DO HERE IS UNDERSTAND THE REPAIR AND MAINTENANCE COST OF CITY HALL AND THE TIMING OF THESE, BECAUSE SOME OF THESE SEEM PRETTY URGENT.
SO THOSE WHO MOVE FORWARD ON THE LIST, OTHERS WE MIGHT BE ABLE TO DELAY, EVEN THOUGH THAT'S THE NAME OF THE GAME HERE IS THAT'S BEEN THE PROBLEM.
UNDERSTANDING THE VALUE OF THIS PROPERTY.
AS THIS PART OF DOWNTOWN DEVELOPS.
THAT'S OUR FIDUCIARY RESPONSIBILITY.
WE DO IT WITH OTHER REAL ESTATE ASSETS.
THERE'S NO REASON THIS SHOULD BE THE SACRIFICIAL LAMB THAT WE KEEP HANDS OFF OF OUR SACRED COW, I SHOULD SAY, RATHER, AND TO LOOK AT SALE OR GROUND LEASE, AND THEN TO UNDERSTAND ANY OTHER FACTORS THAT COULD GET IN THE WAY OF THAT, THE PARKLAND ISSUE OR BOND ISSUE.
I STAND BY THAT THOSE ARE THE THINGS THAT WE NEED TO DO.
MOVING ON TO IF WE WERE TO MOVE, AND NOBODY'S TALKED.
WE HAVE NOT FORMALLY TALKED ABOUT DEMOLISHING.
WE HAVE NOT FORMALLY TALKED ABOUT NEW CONSTRUCTION, SO WHEN I READ ABOUT THAT,
[00:10:01]
IT THAT'S NOT REALLY WHAT'S BEING DISCUSSED HERE.BUT ON THESE BUILDINGS AROUND DOWNTOWN, WE'VE TALKED ABOUT HIGH-END AND LOW-END.
AND A POINT I WANT TO MAKE ABOUT THAT IS THAT.
IT'S A COMPETITIVE MARKETPLACE.
AND CITY HALL, THE TAXPAYERS WANT GREAT SERVICE, BUT THEY DON'T NECESSARILY WANT TO PAY TOP DOLLAR TO STAFF TO GET THAT TO SERVICE.
ONE THING THAT WE CAN DO IS PROVIDE AN ENVIRONMENT.
WE WORK REALLY HARD ON HAVING GOOD BENEFITS AND HAVING WHATEVER AMENITIES WE CAN SCRATCH OUT AROUND HERE, BUT THERE AREN'T MANY.
AND SO, AS WE LOOK AT SOME OF THESE OTHER BUILDINGS, WHAT IS A LOW-END TABLE STAKES AMENITY? AND THEN WHAT ARE SOME THINGS THAT IF YOU WENT TO ANY OF THESE OTHER BUILDINGS, YOU'D SEE BEING OFFERED TO EMPLOYEES SO THAT THOSE BUSINESSES CAN BE COMPETITIVE IN THE MARKETPLACE?
>> GOOD MORNING, BRIAN THOMPSON, ASSISTANT DIRECTOR OF FACILITIES AND REAL ESTATE MANAGEMENT. THANK YOU FOR THE QUESTION.
SO WHEN WE TALK ABOUT THE AMENITIES PIECE OF ANY FACILITY AND THE LOW END AND THE HIGH END, IF WE WANT TO LOOK AT LOW-END AMENITIES, WE'D BE TALKING ABOUT SMALL CONFERENCE SPACES.
MULTIPLE FOOD SERVICE OPTIONS WITH VARYING PRICE RANGES, WHICH WE TALKED ABOUT YESTERDAY.
WE ARE LIMITED TO THIS BUILDING RIGHT NOW.
ACCESS TO PUBLIC TRANSPORTATION, NAMELY A DARK STATION.
AND THAT CATEGORY FALLS INTO BOTH THE LOW AND HIGH END, HAVING ACCESS TO THE PEOPLE'S BUILDING.
SECURITY. PEOPLE ARE CONCERNED ABOUT SECURITY.
SO 24/7 SECURITY IS BOTH A LOW AND HIGH-END AMENITY.
AND THEN WHEN WE TALK ABOUT THE HIGH-END AMENITIES, AGAIN, ADVANCED FOOD SERVICE OPTIONS, WHETHER IT'S AN ON-SITE CAFE, A WINE BAR, FULL-SERVICE TYPE FOOD OPERATION.
WE'RE TALKING ABOUT WI-FI, GREEN SPACE ENVIRONMENTS THAT ARE ACCESSIBLE TO THE PUBLIC, HIGHER-QUALITY FITNESS CENTER FOR STAFF THAT WORK IN HERE.
THOSE ARE THINGS THAT, AND THEN ANOTHER ONE, AN IMPORTANT ONE, AND IT WAS BROUGHT UP YESTERDAY, SMART BUILDINGS.
THAT WOULD BE A HIGH-END AMENITY THAT WE WOULD BE LOOKING FOR FROM A BUILDING CONTROL AUTOMATION.
>> WHEN PEOPLE HEAR THE WORD AMENITIES, WE'RE NOT TALKING ABOUT LUXURY.
WE'RE TALKING ABOUT THINGS BEING OFFERED ALL AROUND THE CITY, AND IN FACT, THE NATION, ABOUT PUBLIC TRANSIT, WHICH ALIGNS WITH SOME OF OUR GOALS AS A CITY.
SECURITY, WHICH IS VERY CRITICAL IN THIS DAY AND AGE, AND THEN THE SMART CAPABILITY, WHICH ALSO CAN HELP WITH JUST TECHNOLOGY, EFFICIENCY, ET CETERA.
SO WHEN YOU MENTIONED SOME OF THE THINGS LIKE CAFE, I THINK FOLKS MAY THINK THAT IS A HIGH-END AMENITY, BUT THIS IS ALSO THE PEOPLE'S HOUSE.
THERE ARE CERTAIN ASPECTS OF THESE THINGS THAT MIGHT BE INVITING IF THERE WAS AN OPEN SPACE WITH WI-FI, WHERE, WHEN PEOPLE ARE HERE WAITING TO SPEAK OR ATTEND A MEETING WITH THEIR COUNCIL REPRESENTATIVE, THERE ARE SOME THINGS THAT THEY COULD ACTUALLY MAYBE ENJOY THE PEOPLE'S HOUSE A LITTLE BIT MORE AND BE PRODUCTIVE IN THAT SPACE.
SO THANK YOU FOR DRILLING DOWN ON THOSE ITEMS. I APPRECIATE IT.
>> I'D JUST LIKE TO ADD ONE MORE ADDITIONAL ITEM, AND I THINK IT'S IMPORTANT BECAUSE IN THIS BUILDING, WE DO OUR OWN JANITORIAL AND CUSTODIAL.
SO, DEPENDING ON A NEGOTIATED LEASE, WHICH IS ONE OF THE THINGS THAT WE WERE TRYING TO SHARE YESTERDAY.
WE GOT SOME REASONABLE ESTIMATES FROM SOME FRIENDS THAT GAVE US THOSE ESTIMATES THAT ARE VERY FAMILIAR WITH THE MARKET HERE IN DOWNTOWN, AND SO WE CAN NEGOTIATE THAT.
BUT AGAIN, THOSE ARE LINE ITEMS THAT I THINK THE CITY WOULD BE ABLE TO LEVERAGE TO OUR BENEFIT IF COUNSEL GAVE US THE GO-AHEAD TO GO THAT DIRECTION.
>> THANK YOU. COUNCIL MEMBER RESENDEZ, ANYTHING?
>> I THINK DEPUTY MAYOR PRO TEM WILLIS BROUGHT UP ONE ISSUE THAT I HADN'T HEARD TOO MUCH DISCUSSION ABOUT, AND I'M CURIOUS TO KNOW HOW THE FOLKS WHO ACTUALLY WORK IN THIS BUILDING FEEL ABOUT THE BUILDING.
NOW, IN THE SHORT TERM, IN THE LONG TERM, SO I DON'T KNOW IF IT'S POSSIBLE TO GET THAT TYPE OF INFORMATION.
AND THEN, I KNOW WE HAVE BIG PICTURE ITEMS IN TERMS OF ESTIMATED COST.
BUT I DO THINK ABOUT ONE THING THAT I'VE ALWAYS WONDERED ABOUT WORKING IN THIS PARTICULAR SPACE IS, DO WE KNOW WHAT THE COST WILL BE TO ACTUALLY HAVE FUNCTIONING HIGH-QUALITY WI-FI IN THIS SPACE THAT WE'RE IN RIGHT NOW? BECAUSE I'VE NEVER SEEN IT. I DON'T KNOW HOW THAT'S RELATED TO THE BUILDING ITSELF, BUT THOSE ARE A FEW THINGS I'D LIKE TO KNOW. THANK YOU.
>> THANK YOU FOR THAT. I WILL TELL YOU, THERE'S ONE THING IN PARTICULAR THAT I THINK WE'VE HEARD THE MOST OVER THE YEARS, AND THAT'S NOT EASY ACCESS TO FOOD SERVICE.
I MENTIONED YESTERDAY THAT WHEN I FIRST STARTED WORKING HERE, JUST A COUPLE OF DAYS AGO,
[00:15:03]
THERE WAS A BUSTLING CAFETERIA ON THE SEVENTH FLOOR WHERE YOU COULD GET ANY RANGE OF THINGS FOR BREAKFAST, LUNCH, AND THINGS OF THAT NATURE.AND IT WAS A REALLY A PLACE FOR PEOPLE TO GO RELAX AND INTERACT WITH, AND TODAY, IT'S NOT.
AND THAT'S BECAUSE WE JUST HAVEN'T BEEN ABLE TO FIND THE CAPITAL TO PUT INTO THEN KEEP IT UP TO DATE AND UP TO CODE.
AND SO TODAY, WE DON'T HAVE A REGULAR FOOD SERVICE IN THE BUILDING FOR THE 2,200 OR SO ASSIGNED PEOPLE HERE.
PEOPLE TYPICALLY LEAVE THE BUILDING IF THEY WANT TO DO SOMETHING OUTSIDE OF BRINGING THEIR OWN LUNCH.
>> THANK YOU, CHAIR. THANK YOU FOR THIS PRESENTATION AND THANK YOU FOR THE REDUNDANCY OF IT ALL.
AGAIN, THIS HAS BEEN SOMETHING THAT I THINK HAS BEEN NECESSARY TO DISCUSS BECAUSE WE'VE HAD AND I'M SURE IT'S PROBABLY ALREADY BEEN SAID, BUT WE'VE HAD OPPORTUNITIES, YEAR AFTER YEAR AFTER YEAR, BOND OUT PROGRAM AFTER BOND AFTER PROGRAM TO ADDRESS SOME OF THESE THINGS.
THERE'S ONE THING THAT WE KNOW IS THE COST, HOW MUCH IS IT GOING TO COST TO BRING THIS BUILDING UP TO CODE.
BUT THEN THERE'S THE OTHER PIECE, AND THAT'S THE PART THAT I'M DWELLING ON.
I'M GLAD MY COLLEAGUES ARE SPEAKING TO THIS.
THAT'S REALLY THE OPPORTUNITY FOR US IF WE WERE TO TRANSITION OUT OF THIS BUILDING.
I'VE WORKED IN THIS BUILDING FOR 16 YEARS, AND I'VE EXPERIENCED THE HIGHS AND THE LOWS AND THE LIMITATIONS IN TERMS OF WHEN WE HAVE MADE ATTEMPTS TO TRY TO BE INNOVATIVE IN THIS SPACE.
WHEN WE'VE HAD MADE ATTEMPTS TO INVITE OTHER BUSINESSES TO CONSIDER COMING IN AND RENTING OUT SPACES AND UNDERSTANDING THE LIMITATIONS IN TERMS OF WHAT WE COULD OR COULDN'T DO BECAUSE OF THE BUILDING.
FROM AN OPPORTUNITY PERSPECTIVE, MY COLLEAGUES HAVE SAID IT, I THINK IT'S IMPORTANT TO GET THE FEEDBACK FROM OUR CITY EMPLOYEES, BOTH THOSE AND SOME OF THE RETIRED ONES, TOO, TO EVEN TALK ABOUT HOW THINGS USED TO BE THERE TO TALK ABOUT SOME OF THOSE THINGS THAT HAVEN'T BEEN REPAIRED EVEN SINCE THEY FIRST STARTED WITH THE CITY.
UNDERSTANDING THAT. BUT THEN ALSO, AS WE'RE LOOKING AND EXPLORING OPPORTUNITIES FOR POTENTIAL RELOCATION, I SAID IT YESTERDAY, AND I'LL SAY IT AGAIN JUST TO MAKE SURE.
BUT HOW WE DO GOVERNMENT IS CONTINUING TO CHANGE, AND IT'S CONTINUING TO EVOLVE.
AS WE'RE LOOKING AT THAT NEXT SPACE AND THAT OPPORTUNITY, UNDERSTANDING THOSE EVER CHANGING NEEDS OF HOW WE DO GOVERNMENT AND MAKING SURE THAT THE PEOPLE BENEFIT FROM THIS.
WHEN WE TALK ABOUT THOSE AMENITIES, IT'S NOT JUST AMENITIES FOR CITY EMPLOYEES, IT'S AMENITIES FOR THE PEOPLE THAT ENGAGE WITH CITY HALL.
THINKING ABOUT HOW THEY ENGAGE WITH CITY HALL, HOW THEY ENGAGE WITH CITY SERVICES, AND THEN HOW THEY ENGAGE WITH SOME OF THE POTENTIAL AMENITIES THAT COULD BE IN AND AROUND THE AREA IS ONE THAT I'D LOOK AT FROM THERE, AND THEN OVERALL THE ECONOMIC OPPORTUNITY.
WE KNOW THAT YOU ALL, THINK IT HAS BEEN MADE VERY CLEAR TO GO THROUGH DOING A FULL ASSESSMENT OF THIS FACILITY TO REALLY SEE WHAT IS IT GOING TO TAKE TO BRING THIS THING UP TO SPEED.
THEN EVEN IF WE WERE TO INVEST ALL OF THAT MONEY INTO THIS BUILDING TO BRING IT UP TO SPEED, WILL IT STILL BE ABLE TO FUNCTION IN A WAY THAT CAN GIVE US THE TYPE OF SERVICES THAT WE WANT TO PROVIDE TO THE PUBLIC? THERE'S THESE TWO DIFFERENT LEVELS OF DISCUSSION IN TERMS OF HOW WE OPERATE THERE.
BUT AGAIN, AS FAR AS I'M CONCERNED, I WANT US TO CONTINUE EXPLORING AND LOOKING FOR OPTIONS TO TRANSITION SO THAT WE CAN BETTER SERVE THE PUBLIC AND THAT OUR EMPLOYEES HAVE BETTER CONDITIONS TO WORK IN. I'LL STOP THERE. THANK YOU.
>> THANK YOU, CHAIRMAN. I'LL START WITH MAYOR PRO TEM AND THEN WE'LL WORK DOWN, AND MY VICE IS GOING TO WRAP IT UP. THANK YOU.
>> THANK YOU, CHAIR. I APPRECIATE THAT.
DONZEL, THE RANGE THAT WE'RE PROVIDED, DOES THAT INCLUDE TODAY'S DOLLARS OR POSSIBLY AS WE CONSIDER THE FUNDING SOURCE FOR CITY HALL REPAIRS, TO POSSIBLY 5, 10, 15 YEARS DOWN THE ROAD.
ARE WE FORECASTING THAT FAR IN ADVANCE TO GIVE US A CLEAR PICTURE OF WHAT THOSE DOLLARS MIGHT BE, NOT TODAY, BUT AGAIN, IN 5, 10 AND 15 YEARS.
>> I'M GOING TO ANSWER YOUR QUESTION IN TWO PARTS.
THE FIRST PART IS THE CHART ON SLIDE EIGHT IS ADJUSTED FOR INFLATION OR TODAY'S DOLLARS SO THAT WE WOULD GIVE YOU, FORGIVE ME I SAY THIS, BUT OLDER ESTIMATE, BUT BRING IT IN TODAY'S DOLLARS.
YOUR QUESTION ABOUT HAVE WE DONE A TIMELINE OF WHEN WE WOULD ACTUALLY SPEND MONEY OVER THE COURSE? I NEED TO SEE IF [INAUDIBLE] HELP ME WITH THAT.
WE HAVEN'T DONE AN ACTUAL FUNDING STRATEGY PLAN ON HOW WE WOULD ACTUALLY MAKE THESE IMPROVEMENTS.
THAT'S SOMETHING THAT WOULD BE A NEXT STEP FOR US.
>> AS I MENTIONED YESTERDAY, WE CAN ALL IN A SCENARIO WHERE EVERYBODY AGREES THAT WE SHOULD REPAIR CITY HALL.
[00:20:01]
THE STAFF RECOMMENDS IT, THE BOND COMMITTEE RECOMMENDS IT, THIS COUNCIL RECOMMENDS IT.AT THE END OF THE DAY, WE DON'T HAVE CONTROL OR A CRYSTAL BALL OF WHAT THE VOTERS APPETITE WOULD BE TO SUPPORT AN INVESTMENT INTO CITY HALL.
DID WE FIGURE OUT WHAT OTHER SOURCES COULD POSSIBLY BE FUNDED FOR REPAIRS?
>> RIGHT. THE VOTER SENTIMENT IS A REAL SERIOUS NOTION THAT OBVIOUSLY WE DON'T HAVE CONTROL OVER THAT.
BUT AS FAR AS FUNDING STRATEGIES ARE CONCERNED, AND I KNOW JACK IRELAND, OUR CFO IS IN ANOTHER CONVERSATION AT THE MOMENT.
I'LL TALK AND GIVE HIM A MINUTE TO FILTER IN.
BUT JACK, I BELIEVE THE QUESTION WAS, WHAT TYPE OF FUNDING STRATEGIES COULD WE EMPLOY IN AN EFFORT TO MAKE THE REPAIRS NECESSARY FOR THE BUILDING?
>> SPECIFIC TO REPAIRS AT THIS BUILDING?
>> THAT IS CORRECT, SIR. THE TIMELINE OF SITE.
>> OKAY. THANK YOU. I APOLOGIZE.
I WAS WITH COUNCIL MEMBER WEST.
JACK IRELAND CHIEF FINANCIAL OFFICER.
AS WE'VE TALKED ABOUT BEFORE, THERE IS NOT A FUNDING SOURCE AVAILABLE TO MAKE THE REPAIRS TO THIS BUILDING AT THIS TIME.
WE HAVE LIMITED FUNDS THAT WE PUT INTO THE ANNUAL OPERATING BUDGET FOR MAINTENANCE OF ALL THE FACILITIES.
THE FACILITIES, REAL ESTATE MANAGEMENT DEPARTMENT HAS 500 BUILDINGS TO TAKE CARE OF, AND WE DEFINITELY DO NOT PROVIDE SUFFICIENT FUNDING FOR THAT.
BECAUSE OF THE COMPETING PRIORITIES.
AS WE GO THROUGH THE BUDGET PROCESS, YOU'LL ALL KNOW THIS PROCESS, AND YOU SAW AND YOU EXPERIENCED THE COMPETING PRIORITIES, WHETHER IT IS MORE FUNDING FOR POLICE OFFICERS OR MORE PAY FOR POLICE OFFICERS OR PENSION OR A TAX RATE REDUCTION OR WHATEVER LIBRARY, ETC.
LIMITED FUNDING AVAILABLE FOR THIS THROUGH OUR OPERATING BUDGET.
OUR OPERATING BUDGET IS GOING TO BECOME MORE CONSTRAINED OVER TIME.
I ANTICIPATE THAT WE'RE GOING TO BE MORE CHALLENGED AS WE GO FORWARD INTO FUTURE BUDGETS.
I HEARD SOME OF YOU EXPRESS THAT YESTERDAY THAT YOU HAVE CONCERNS ABOUT THE CONSTRAINTS GOING FORWARD.
AT THIS POINT IN TIME, IF YOU WERE TO ASK ME THE MOST VIABLE OPTION OF HOW TO FUND THE TYPES OF REPAIRS, THESE REPAIRS THAT WOULD ADD TO THE USEFUL LIFE OF THE FACILITY, WE WOULD BORROW FUNDS, WE WOULD ISSUE DEBT TO BE ABLE TO MAKE THOSE TYPES OF REPAIRS.
WE HAVE LIMITED CAPACITY ON HOW MUCH MONEY WE CAN BORROW EACH YEAR.
TO BORROW THE FUNDS, IF WE SOUGHT VOTER APPROVAL, WE COULD PUT IT IN THE NEXT BOND PROGRAM IN 2030 OR IF THERE WAS A DESIRE TO SEEK VOTER APPROVAL SOONER, WE COULD SEEK THAT, AND IF APPROVED BY THE VOTERS, THEN WE COULD GO AHEAD AND DO IT, BUT WE WOULD BE BUMPING 2024 PROJECTS TO A LATER DATE SO WE COULD DO THIS FACILITY NOW.
IF WE DON'T USE BOND FUNDS, I'M REALLY NOT SURE WHERE WE'RE GOING TO COME UP WITH THIS SIGNIFICANT DOLLARS TO MAKE THE REPAIRS.
THE GENERAL FUND DOES NOT HAVE THE CAPACITY WITH ALL OF THE COMPETING INTEREST.
WE COULD DEFINITELY NOT GET IT DONE ANYTIME SOON.
>> I'VE STATED I'M IN SUPPORT OF OPTION THREE.
IF WE WERE TO LOOK AT OPTION TWO, THE ONLY WAY THAT I WOULD SUPPORT OPTION TWO WOULD BE TO DO, DOING EVERYTHING AT ONCE TO CAUSE THIS MINIMAL DISRUPTION TO THE STAFF THAT WORK HERE EVERY SINGLE DAY.
PHASING THIS RENOVATION OVER 5, 10, EVEN A 15 YEAR PERIOD, TO ME, IS NOT A GOOD WAY TO MAKE THOSE NECESSARY REPAIRS.
I WOULD LIKE TO SEE THEM ALL AT ONCE.
IT SOUNDS LIKE WE DON'T HAVE THE CAPACITY TO BE ABLE TO DO THAT.
AGAIN, MY PREFERENCE IS MOVING FORWARD WITH OPTION THREE, SEEING A SIDE BY SIDE OF WHAT IT WOULD COST TO STAY HERE AT CITY HALL AND THEN DIRECTING OUR STAFF TO LOOK AT A MARKET STUDY AND THE ECONOMIC DEVELOPMENT OPPORTUNITIES ON THE ACREAGE THAT WE HAVE HERE AT CITY HALL. THANK YOU, CHAIR.
>> THANK YOU, MAYOR PRO TEM. CHAIRMAN RIDLEY.
>> THANK YOU, MR. CHAIR. FOLLOWING UP ON THAT DISCUSSION, JACK, THIS COUNCIL CAN RE ALLOCATE BOND FUNDS FROM OLD BOND ISSUES IF THE MONEY IS NOT SPENT FOR THE INTENDED PURPOSE BECAUSE OF REDUCED EXPENSES OR CHANGES IN THE REQUIREMENTS OF THE PROJECTS.
WE HAVE THE AUTHORITY TO DO THAT, DO WE NOT?
>> WE DO HAVE THE AUTHORITY WITHIN A SPECIFIC PROPOSITION TO RE ALLOCATE BETWEEN PROJECTS.
IF A COMPELLING CASE CAN BE MADE, AND WE CAN WORK WITH BOND COUNSEL ON THIS.
[00:25:01]
THERE IS WAYS TO REPROGRAM FROM OTHER PROPOSITIONS.I'VE ONLY SEEN IT DONE ONCE IN 30 YEARS, AND IT WAS WHEN A PROJECT WAS NO LONGER NEEDED, AND IT WAS BASICALLY CANCELED.
I DO NOT THINK YOU COULD CANCEL STREET PROPOSITION PROJECTS AND SAY, WE NO LONGER NEED THOSE.
I DON'T THINK YOU CAN MAKE THAT ARGUMENT.
YOU CAN REPROGRAM REALLOCATE WITHIN THE CITY FACILITIES PROPOSITION.
>> THAT WAS PROPOSITION H IN THE 2017 BOND.
THERE IS CURRENTLY $12.5 MILLION UNENCUMBERED IN THAT FUND.
I WOULD SUGGEST THAT AFTER EIGHT YEARS SINCE THAT BOND PROPOSAL WAS PASSED, IT'S TIME TO RE PRIORITIZE THOSE PROJECTS TO CONSIDER WHAT I SUBMIT IS OUR HIGHEST PRIORITY NOW, WHICH IS CITY HALL.
IN ADDITION TO THAT, THERE IS ANOTHER $64 MILLION IN UNENCUMBERED BOND FUNDS FROM OTHER PROPOSITIONS FROM 2017.
NOW, ONCE AGAIN, IF EIGHT YEARS HAS ELAPSED WITHOUT SPENDING THAT MONEY OR EVEN CONTRACTING FOR THE EXPENDITURE OF THAT MONEY, I SUBMIT THAT WE COULD EASILY MAKE A DETERMINATION THAT THOSE PROJECTS ARE NO LONGER NEEDED OR NO LONGER VIABLE.
I SUBMIT THERE ARE $76 MILLION IN EASILY TAPPED FUNDS FOR OUR CURRENT HIGH PRIORITY.
NOW, DONZEL, CAN YOU EXPLAIN TO THIS COMMITTEE WHY THE ALLOCATION FROM THE 2017 BOND PROPOSAL FOR REPAIRS OF THE SAME ITEMS, MANY OF THE SAME ITEMS THAT YOU HAVE STAFF HAS LISTED IN THIS PRESENTATION WAS NOT EXPENDED TO SOLVE THOSE PROBLEMS?
>> I WOULD ACTUALLY NEED SOME SUPPORT FROM THE OFFICE OF THE BOND PROGRAM.
I THINK I SAW JENNY OVER THERE TO MY LEFT EARLIER.
>> WHILE WE'RE WAITING ON JENNY, I'D LIKE TO FOLLOW UP.
COUNCIL MEMBER, IN 2017, YOU'RE REFERENCING THE UNENCUMBERED BALANCES IN THE OTHER PROPOSITIONS BESIDES PROPOSITION H?
>> AGAIN, I THINK WE'RE GOING TO HAVE A HARD SELL TO BE ABLE TO RE ALLOCATE FROM THOSE OTHER PROPOSITIONS TO CITY HALL.
I DON'T THINK WE WILL BE ABLE TO MAKE THE ARGUMENT THAT THE STREET FUNDING, THE PARK FUNDING, THE FLOOD PROTECTION FUNDING, THAT THOSE PROJECTS ARE NO LONGER NEEDED, AND THEREFORE SHOULD BE CANCELED TO REALLOCATE THE FUNDS.
IT'S REALLY MORE OF A BOND COUNSEL LEGAL QUESTION, BUT I THINK WE WOULD HAVE A VERY HARD TIME WITH THAT.
>> WELL, I THINK WE NEED AN EXPLANATION FROM STAFF WHY THAT MONEY HASN'T BEEN DEPLOYED IN EIGHT YEARS.
>> UNDERSTOOD. I'LL LET JENNY.
>> EXCUSE ME. GOOD AFTERNOON, JENNY NICE FUNDER, THE DIRECTOR OF OFFICE OF BOND AND CONSTRUCTION MANAGEMENT.
TO ANSWER THE QUESTION ABOUT THE BOND FUNDS SPECIFIC TO CITY FACILITIES, THAT I CAN SPEAK TO WHAT HAPPENED SINCE 2023 WHEN I CAME ON BOARD IN THAT PRIORITIZATION.
THAT REALLY COMES DOWN TO A STAFFING LEVEL IN TERMS OF GETTING THE PROJECTS OUT THE DOOR.
WE ARE VERY SMALL INFRASTRUCTURE DEPARTMENT, AND SO WE ARE BALANCING THE PROJECT THAT WE STILL HAVE LEFT TO DO ALONG WITH THE 2024 BOND PROJECTS THAT ARE IN THE QUEUE.
>> WELL, THESE PROJECTS WERE SUPPOSED TO HAVE STARTED IN 2018 BY MAY 8 OF 2018.
NO PLAN WAS MADE TO DEPLOY THOSE FUNDS IN CITY HALL BEFORE YOU CAME HERE IN 2023.
>> I DON'T HAVE ANY SPECIFIC ANSWERS TO THAT.
I CAN TELL YOU THAT IT'S PROBABLY A LOT OF WHAT YOU'VE HEARD BEFORE, THAT THERE'S A LOT OF OTHER PRIORITIES THAT HAVE COME BEFORE THE ONES THAT ARE AT CITY HALL.
>> THOUGH IT WAS STAFF THAT DIDN'T THINK THAT WAS A HIGH ENOUGH PRIORITY, AND SO PUTS CITY HALL ON THE BACK BURNER AND IS NOW BRINGING THOSE DEFICIENCIES FORWARD IN A JUSTIFICATION TO DO A WAVE OF CITY HALL.
>> WELL, I CAN SAY THE PROJECTS THAT WE WORK ON, WE WORK ON A PRIORITY BASIS AS FUNDING IS AVAILABLE.
>> WELL, WHO DETERMINES THAT PRIORITY?
>> FOR THE [INAUDIBLE] BOND PROJECT, THE PRIORITIES HAVE BEEN BASED ON WHEN THE FUNDING IS AVAILABLE THROUGH THE BOND PROGRAM.
FOR US, THAT'S WHEN WE GET STARTED ON THE PROJECTS.
BUT AGAIN, I WOULD HAVE TO DO SOME RESEARCH TO SEE IF THERE'S ANY DETAILS AS TO WHY THE CITY HALL PROJECTS WEREN'T DONE.
I KNOW WE DO HAVE $1 MILLION THAT IS ON HOLD RIGHT NOW FROM EARLIER BOND PROJECTS THAT WE ARE WORKING TO MOVE FORWARD ON.
>> WELL, APPARENTLY, THIS WAS PRIORITIZED VERY HIGH BECAUSE THE START DATE FOR THESE PROJECTS WAS TO BE MAY 8,
[00:30:04]
2018, THE FIRST YEAR OF THE BOND PROGRAM.I'M JUST WONDERING WHY IT WAS NOT PERFORMED IF IT WAS AT SUCH A HIGH PRIORITY.
>> I WOULD HAVE YES, I WILL, SIR.
>> THANK YOU. THESE ARE GOOD QUESTIONS.
AS A NOTE TO MY NEWER COMMITTEE MEMBERS.
THE GPFM COMMITTEE AND NOW THE FINANCE COMMITTEE GETS QUARTERLY REPORTS FROM THE BOND OFFICE ON THE UNENCUMBERED FUNDS, AND WE DO A DEEP DIVE ONCE A YEAR, AND I KNOW THAT DIRECTOR NICE WANDER ACTUALLY WAS THE ONE THAT STARTED THAT THIS LAST TERM.
YOU GUYS ARE ALWAYS WELCOME TO COME TO DO THE DEEP DIVE WITH US WHEN THAT COMES UP.
I WILL TURN IT OVER TO COUNCIL MEMBER ROTH.
>> THANK YOU. THIS IS A QUESTION THAT MAYBE YOU ALL HAVE ALREADY TALKED ABOUT AND I DIDN'T HEAR THE ANSWER.
ARE THERE OTHER FUNDS THAT THE CITY HAD THAT ARE NOT BOND FUNDS? FOR EXAMPLE, ARE THERE RESERVE FUNDS? ARE THERE ARPA FUNDS OR SOME FUNDS LIKE THAT THAT ARE IN DIFFERENT BUCKETS THAT WOULD BE AVAILABLE FOR GENERAL REPAIRS, COMING OUT OF RESERVES TO THE EXTENT THAT SOME OF THESE COSTS FOR REPAIRS COULD BE SUPPLEMENTED? BY NON BORROWING SITUATIONS.
>> AGAIN, JACK ARLEN, CHIEF FINANCIAL OFFICER.
WE HAVE TAKEN ADVANTAGE OF ARPA DOLLARS WHEN THEY BECAME AVAILABLE FOR A VARIETY OF DIFFERENT TYPES OF PROJECTS, INCLUDING SOME DEFERRED MAINTENANCE AND SOME DIFFERENT FACILITIES.
I BELIEVE THERE WERE SOME DOLLARS THAT DID END UP GETTING RE ALLOCATED TO CITY HALL FROM ARPA, BUT WE'RE AT A POINT WHERE THERE'S NOT $300 MILLION LEFT IN THE ARPA FUNDS, OF COURSE.
YES, SIR. WE HAVE RESERVE FUNDS.
THE GENERAL FUND FUND BALANCE HAS AN EMERGENCY RESERVE, A CONTINGENCY RESERVE, A RISK MANAGEMENT RESERVE AND A HEALTH BENEFITS RESERVE AS WELL AS OUR RESIDUAL FUNDS.
IN TOTAL, THERE'S ABOUT 63 DAYS WORTH OF OPERATING EXPENSE IN THE RESERVE.
THAT IS OUR CASH FLOW THAT COVERS OUR ABILITY AS PROPERTY TAX DOESN'T COME IN UNTIL JANUARY.
IT'S HOW WE MANAGE BY HAVING THAT CASH IN THE BANK.
THEN THERE'S WAYS THAT WE ACCESS THOSE RESERVE FUNDS IF A SITUATION COMES UP THAT COUNCIL DIRECTS US TO DO SO.
WE ARE IN COMPLIANCE WITH THE CITY COUNCIL'S APPROVED FINANCIAL MANAGEMENT PERFORMANCE CRITERIA, WHICH YOUR REQUIREMENT IS THAT WE ARE BETWEEN 50 DAYS AND 70 DAYS IN OUR RESERVE LEVEL, WE ARE, I BELIEVE IT'S 63 DAYS.
WE'RE RIGHT IN THE MIDDLE OF WHERE ALL HAVE DIRECTED US TO BE.
THEN AGAIN, BACK TO THE BOND FUNDS, THE DEBT THAT WE HAVE ISSUED, THERE HAS BEEN REFERENCE TO WHEN THE BOND PROGRAM WAS APPROVED, BUT, OF COURSE, THOSE BONDS DON'T BECOME AVAILABLE RIGHT THEN.
WE USUALLY IMPLEMENT OVER TIME, DOESN'T CHANGE THE CONVERSATION BUT BY A FEW YEARS.
BUT STILL, THOSE ARE NOT ALL BECOMING AVAILABLE ON ONE POINT IN TIME.
AS FAR AS OTHER FUNDS, NO, SIR.
I BELIEVE WE'VE HIT ON THE BIG ONES THAT WE HAVE AVAILABLE.
>> VICE CHAIR STEWART. TAKE IT AWAY.
FIRST, I WANT TO SAY THANK YOU TO DONZEL AND TO ROSA AND JOHN CRAM?
>> BRIAN THOMPSON. JOHN IS OUT.
>> BRIAN. THANK YOU FOR CONTINUING TO ANSWER OUR QUESTIONS TO PROVIDE US THE INFORMATION THAT WE NEED.
THE POWERPOINT AND THE INFORMATION YOU'VE GIVEN US HAS BEEN EXCELLENT AND VERY HELPFUL.
WE UNDERSTAND IT MAY NOT BE ABLE TO BE AS PRECISE AS SOME OF US WOULD LIKE THAT TO BE, THAT IT DOES INCLUDE RANGES.
AT THIS POINT IN TIME, I WOULD EXPECT, ESPECIALLY WITH RESPECT TO COSTS, THAT IT WOULD BE A RANGE.
IF YOU BROUGHT US AN EXACT NUMBER, IT WOULD BE HARD TO ACCEPT THAT BECAUSE WE ALL KNOW THERE ARE CONTINGENCIES, THERE ARE UNKNOWNS, THERE ANYTHING THAT'S REPAIR OR CONSTRUCTION PROJECT ENDS UP GROWING OVER TIME, UNFORTUNATELY, JUST BECAUSE OF THE NATURE OF THAT TYPE OF WORK, AND WHAT YOU UNCOVER IS YOU'RE WORKING ON THAT BUILDING, THAT HOME OR THE CAR, WHEREVER THAT REPAIR IS HAPPENING.
THANK YOU VERY MUCH FOR YOUR PATIENCE WITH US,
[00:35:02]
AS WE MAY ASK YOU, COME AT THE SAME QUESTION, SEVERAL DIFFERENT DIRECTIONS.BUT JUST WANT TO PIN DOWN THE INFORMATION THAT IS AVAILABLE TO US AS WE MAKE THIS DECISION.
THERE'S SO MUCH OUT THERE, BUT YOU ALL HAVE REALLY BEEN ABLE TO NARROW DOWN FOR US AND ARTICULATE FOR US WHAT YOU KNOW AT THIS POINT SO THAT WE CAN THEN USE THAT TO MAKE THE BEST DECISION MOVING FORWARD.
I HAVE WHAT WAS GOING TO BE A MOTION, BUT NOW APPEARS TO BE A RECOMMENDATION THAT WE WILL TRY TO BUILD CONSENSUS AROUND.
I THINK MY COLLEAGUES HAVE COPIES OF THIS.
THE CASE. I RECOMMEND THAT THE FINANCE COMMITTEE FORWARD AN ITEM TO THE NOVEMBER 12 CITY COUNCIL AGENDA MEETING, DIRECTING THE CITY MANAGER IN PARTNERSHIP WITH AND UNDER THE GUIDANCE OF THE FINANCE COMMITTEE TO DO THE FOLLOWING.
ONE EVALUATE REAL ESTATE OPPORTUNITIES TO ADVANCE OPTION 3 FROM THE STATE OF CITY HALL BRIEFING, INCLUDING A, FINALIZED EVALUATION OF OFFICE SPACE NEEDS FOR DEPARTMENTS CURRENTLY LOCATED WITHIN CITY HALL, IN THE OAK CLIFF MUNICIPAL CENTER, EXCUSE ME, AND IN OTHER MAJOR CITY STAFF FACILITIES.
B, REVIEW OFFICE SPACE AVAILABLE FOR LEASE AND PURCHASE CITYWIDE AND DEVELOP A LIST OF PROPOSED SITES FOR CREATION OF ONE OR MORE NEW GOVERNMENT CENTER OFFICES.
C, COMPARE THE COST TO LEASE BUY OR BUILD REPLACEMENT OFFICE SPACE VERSUS THE COST TO REPAIR CITY HALL.
D, LEVERAGE EXTERNAL EXPERTISE TO REVIEW DEFERRED MAINTENANCE COST DETERMINED BY STAFF.
E, REVIEW ALTERNATE SITING OPTIONS FOR NON TRADITIONAL OFFICE USES CURRENTLY HOUSED AT CITY HALL, SUCH AS DATA CENTER SPACE, CALL CENTER STAFF, EMERGENCY OPERATION CENTER SPACE, CEREMONIAL SPACE, AND CITY COUNCIL CHAMBERS, AND F, PRESENT AN UPDATE ON EACH ITEM ABOVE TO THE FINANCE COMMITTEE IN EXECUTIVE SESSION NO LATER THAN FEBRUARY 2026.
ITEM NUMBER 2, EVALUATE ECONOMIC DEVELOPMENT OPTIONS TO REDEVELOP CITY HALL IN A WAY THAT IT IS SUPPORTIVE OF THE K BAILEY HUTCHINSON CONVENTION CENTER MASTER PLAN, THAT INCREASES TAX REVENUE TO THE CITY OF DALLAS AND THAT CREATES CATALYTIC GROWTH IN THE CENTRAL BUSINESS DISTRICT, INCLUDING A, COMPLETION OF A MARKET STUDY OF THE HIGHEST AND BEST USE OR USES FOR THE SITE, COMPLETION OF ANALYSIS OF THE POTENTIAL ECONOMIC IMPACT OF A REDEVELOPMENT OF THE SITE BASED ON THE MARKET STUDY FINDINGS, AND C DETERMINE DETERMINATION OF THE VALUE OF THE CITY HALL SITE.
>> WE DON'T NEED A SECOND ON THAT.
SINCE WE ARE NOT ABLE TO DO A PROPER MOTION FOR THIS, IT'S REALLY JUST A RECOMMENDATION, COLLEAGUES.
FOR THOSE OF YOU WHO ARE ON THE COMMITTEE, I'LL JUST ASK IF YOU WANT TO OPINE IN SO THAT WE CAN GIVE THE CITY MANAGER GUIDANCE.
I THINK SHE'S LOOKING FOR THAT, WHATEVER WE DECIDE TO DO HERE.
I'LL KICK IT OFF, THEN I'LL GO THE SAME ORDER WE WENT BEFORE.
I THINK IT DOES A LITTLE SOMETHING IT REALLY ENCOMPASSES EVERYTHING WE'VE BEEN TALKING ABOUT FOR THE LAST SEVERAL WEEKS.
TALKS ABOUT GOING OUT, LOOKING AT OTHER OPTIONS FOR CITY HALL.
IT TALKS ABOUT OUR DEFERRED MAINTENANCE COSTS AND LEVERAGING EXTERNAL EXPERTISE, NOT JUST PLAYING GUESSWORK ON REVIEWING THE DEFERRED MAINTENANCE COSTS THAT HAVE BEEN COLLECTED BY STAFF.
IT LOOKS AT SOMETHING THAT CAME UP A LOT YESTERDAY, WHICH IS NON TRADITIONAL OFFICE NEEDS, LIKE THE 311 OFFICE AND THE 911 OFFICE, AND WHETHER THOSE CAN BE UTILIZED IN A FACILITY THAT ISN'T NECESSARILY IN OUR GOVERNMENT HEADQUARTERS, BUT MAYBE MAYBE AT REDBIRD MALL OR MAYBE AT, YOU KNOW, OAK CLIFF, SOMEWHERE OR SOMEWHERE ELSE.
I THINK THERE IS SOME BENEFIT TO NOT HAVING THOSE 24 HOUR PUBLIC SAFETY SERVICES IN CITY HALL, BUT MAYBE IN A SECURE OTHER LOCATION.
THAT'S SOMETHING I LOOK FORWARD TO HEARING FROM STAFF.
IT'S ALSO THE DATE THAT'S CHOSEN HERE, WHICH IS FEBRUARY OF 2026 TO CALL FOR AN UPDATE GIVES US A LITTLE MORE TIME TO
[00:40:05]
WORK THROUGH SOME OF THE PRESERVATION ISSUES WITH CITY HALL AND HEAR FROM MORE OF OUR PRESERVATION ADVOCATES, AND ALSO TO HOPEFULLY GET BACK THE STUDIES WE'RE LOOKING FOR WITH THE DEFERRED MAINTENANCE.THEN PART 2 IS REALLY GREAT ABOUT CAPTURING EVERYTHING THAT CAME OUT OF YESTERDAY'S CONVERSATION ON THE ECONOMIC DEVELOPMENT OPPORTUNITIES HERE.
THIS ISN'T A I THINK A BLACK OR WHITE ISSUE.
I THINK THIS IS CITY HALL HAS SEVERAL PIECES.
THERE'S THIS HISTORIC STRUCTURE HERE.
WE'VE GOT YOU KNOW, AT ACREAGE SOUTH OF US, WE'VE GOT THE PARKLAND NORTH OF US, AND THERE'S A LOT OF QUESTIONS THAT NEED TO BE ANSWERED ON THE ECONOMIC DEVELOPMENT PIECE AND HOW WE FIT INTO THE CONVENTION CENTER.
ALL OF THESE QUESTIONS ARE PUT INTO THIS RECOMMENDATION, AND I THINK WE OWE A FISCAL DUTY TO OUR RESIDENTS TO KNOW ALL OF OUR OPTIONS AND GET THEM ALL ON THE TABLE.
THEN I'LL END ON THIS. THE WAY I READ THIS IS IT DOESN'T MAKE A DECISION AS COUNCILMAN WILLIS HAD MENTIONED EARLIER, WE'RE NOT TALKING ABOUT DEMOLITION.
WE'RE NOT TALKING ABOUT CONSTRUCTING A NEW BUILDING.
THIS IS GETTING ALL OF OUR OPTIONS ON THE TABLE SO THAT WE ARE ABLE TO MAKE THE MOST PRUDENT DECISION WEIGHING ALL THE FACTORS.
WITH THAT, TURN IT OVER TO COUNCILWOMAN WILLIS.
>> THANK YOU AND THANK YOU FOR READING THIS, CHAIR STEWART.
I THINK IT CAPTURES THE SCOPE OF WHAT'S BEEN DISCUSSED ACROSS THE LAST THREE PRESENTATIONS OF THIS DECK NICELY, SO I'M SUPPORTIVE OF IT. THANK YOU.
>> I'M SUPPORTIVE AS WELL, MR. CHAIR. I THINK THAT THIS SHOWS A PROPER APPROACH TO DUE DILIGENCE, AND IT WILL PROVIDE INFORMATION THAT WE NEED TO MAKE BETTER DECISIONS. THANK YOU.
>> THANK YOU, MR. I TO SUPPORT THIS STATEMENT.
I THINK IT CAPTURES ALL OF OUR COMMENTS AND ALL OF OUR CONCERNS, REGARDLESS OF WHAT SIDE OF THIS TOPIC YOU'RE ON.
THE ONE THING I WILL ADD IS THAT ON NUMBER ITEM B, REVIEW OFFICE SPACE AVAILABLE FOR LEASE PURCHASE CITYWIDE DEVELOPMENT, THE LIST IN DEVELOPING THAT LIST, I WOULD ADD THAT WE GO THROUGH MAYBE SOME FORM OF A REQUEST FOR INTEREST.
JUST SO THAT AS WE'RE HAVING THESE CONVERSATIONS, WE CAN REALLY NARROW THIS DOWN, AND I THINK IT'LL MOVE US TO A DECISION, BECAUSE IF WE DON'T HAVE ANY FACILITIES IDENTIFIED THAT WE ARE SERIOUSLY CONSIDERING, THEN IT'LL BE HARD TO HAVE THESE CONVERSATIONS, AND IT'LL BE HARD TO REALLY BECAUSE EVERYTHING WILL BE A WHAT IF SCENARIO, AND IT'LL BE HARD TO PROVE.
IF WE COULD GO THROUGH SOME FORM OF RFI TO NARROW IT DOWN TO MAYBE ONE OR TWO TO TWO TO THREE BUILDINGS AS OPTIONS, I THINK THAT WOULD HELP US MOVE THIS ALONG.
THANK YOU. IT'S GOOD GUIDANCE.
>> I WILL TURN OVER TO MAYOR PRO.
>> THANK YOU. I TOO WILL SUPPORT THIS.
I WANT TO HAVE OPTIONS IN FRONT OF US SO THAT WE CAN MAKE THE BEST DECISION POSSIBLE.
THE ONLY THING THAT I WOULD ADD TO THIS IS THAT A LOT OF THIS IS FALLS UNDER ECONOMIC DEVELOPMENT SO THAT THIS IS DONE IN CONJUNCTION WITH THE FINANCE COMMITTEE AND THE ECONOMIC DEVELOPMENT COMMITTEE. THANK YOU.
>> IT'S A GOOD CALL. BEFORE I GET TO OUR VISITORS HERE, I HAD HEARD FROM CHAIRMAN JOHNSON THAT HE MAY BE ONLINE, WANTING TO GIVE HIM A CHANCE TO CHIME IN.
I SEE HIS HAND UP. I WOULD HAVE CALLED ON YOU EARLIER, BUT YOU JUST POPPED UP ON THERE. HOW'S IT GOING, CHAIRMAN,.
>> IT'S NO PROBLEM. I'VE BEEN LISTENING. THANK YOU, CHAIR WEST.
I TO SUPPORT THIS OPTION TO GO FORWARD, SO I JUST WANT TO LET YOU KNOW I TO SUPPORT IT AS WELL. THANK YOU SO MUCH.
>> THANK YOU FOR CHIMING IN AND FOR YOUR COMMENTS. CHAIRMAN RIDLEY.
>> THANK YOU, MR. CHAIR. I WOULD SUBMIT THAT ITEM F, PRESENTING AN UPDATE ON THESE ITEMS IN EXECUTIVE SESSION, WOULD SWEEP IN ITEMS WHICH ARE NOT SUBJECT TO THE PRIVILEGE OF AN EXECUTIVE SESSION.
FOR EXAMPLE, ITEM A FINALIZING EVALUATION OF OFFICE SPACE NEEDS.
THERE'S SOMETHING CONFIDENTIAL ABOUT THAT.
THERE IS NOTHING CONFIDENTIAL ABOUT THE USE OF EXTERNAL EXPERTISE IN ITEM D TO REVIEW DEFERRED MAINTENANCE COSTS DETERMINED BY STAFF.
I'M JUST CONCERNED THAT THIS PROVISION F WILL PREVENT ANY PUBLIC DISCLOSURE OR REVIEW OF MANY OF THESE ITEMS WHICH ARE NOT SUBJECT TO ANY PARTICULAR PRIVILEGE.
I WOULD SUGGEST THAT, THAT BE DONE ONLY ON THE BASIS OF A JUSTIFICATION UNDER STATE STATUTES
[00:45:07]
WITH RESPECT TO WHAT IS SUBJECT TO REVIEW ONLY IN THE SECRECY OF AN EXECUTIVE SESSION.ALSO I HAVE A QUESTION FOR YOU, JACK.
YOU HAVE REVIEWED OUR BONDING CAPACITY FOR THE NEXT FIVE OR 10 YEARS.
WHERE WOULD THE CITY OBTAIN THE NECESSARY CAPITAL TO BUY OR BUILD REPLACEMENT OFFICE SPACE?
WE ACTUALLY, I BELIEVE IT WAS OUR LAST MEETING HERE FOR FINANCE COMMITTEE GAVE A PRESENTATION ABOUT OUR FINANCIAL CAPACITY FOR DEBT.
WE TALKED ABOUT OUR PLAN TO ISSUE THE REMAINING 2024 BONDS OVER THE NEXT FIVE YEARS.
WE TALKED ABOUT CAPACITY FOR A 2029 BOND PROGRAM.
AS FAR AS FUNDS THAT WOULD BE AVAILABLE RIGHT NOW, WE WOULD HAVE TO USE SOME OTHER CAPACITY.
WE WOULD HAVE TO TAKE AWAY FROM THE 2024 CAPACITY TO DO ANYTHING IN THE WAY OF BORROWING MONEY RIGHT NOW.
>> SIR IF YOUR ANSWER IS THE SAME AS IT WAS FOR RAISING THE MONEY TO FUND REPAIRS OF CITY HALL.
>> WITH THE CAVEAT THAT THE CONVERSATION THAT'S BEEN HAD IN THIS MEETING, AND I BELIEVE IN THE ECONOMIC DEVELOPMENT COMMITTEE MEETING WAS IN REGARDS TO LEASING SPACE, NOT BUILDING OR BUYING SPACE.
>> I'M REFERRING TO ITEM 1C, WHICH SAYS, COST TO LEASE BY OR BUILD REPLACEMENT OFFICE SPACE.
>> AS WE LOOK AT THOSE OPTIONS, RIGHT NOW, WE'VE TALKED ABOUT LEASE AS THE PRIMARY OPTION.
WE WOULD HAVE TO REVIEW HOW WE WOULD APPROACH EITHER BUYING OR BUILDING, AND BUYING OR BUILDING WOULD REQUIRE US TO BORROW FUNDS.
>> JUST AS IT WOULD FOR DOING SIGNIFICANT REPAIRS TO CITY HALL.
EITHER OF THOSE THREE BUY BUILD OR REPAIR WOULD REQUIRE MOST LIKELY DEBT ISSUANCE.
>> THANK YOU. BEFORE WE MOVE ON TO MR. ROTH, I WANTED TO ASK THE CITY ATTORNEY TO RESPOND TO THE COMMENTS ON 1B REGARDING WHAT WOULD BE GOING TO EXECUTIVE SESSION, WHAT WOULDN'T BE? BECAUSE I THINK IT'S A GOOD QUESTION FOR US MOVING FORWARD.
>> ABOUT THE CONTINGENCY WITH THE CITY ATTORNEY'S OFFICE.
YOU'RE TALKING ABOUT THE REVIEW OFFICE SPACE AVAILABLE FOR LEASE AND PURCHASE CITYWIDE?
>> THAT WAS AN EXAMPLE. YEAH, GO AHEAD.
>> IT WAS A WAS ONE OF MY EXAMPLES, FINALIZING EVALUATION OF OFFICE SPACE NEEDS.
>> TO THE EXTENT THAT THAT WOULD BE A COMPONENT OF A POSSIBLE PURCHASE OR LEASE, THEN IT WOULD NEED TO BE DISCUSSED IN EXECUTIVE SESSION.
BUT IF IT'S A GENERAL PRESENTATION OF JUST WHAT'S AVAILABLE IN THE MARKET WITHOUT ANY SPECIFICS AS TO HOW IT WOULD WEIGH WITH THE CITY'S COMMITMENT FINANCIALLY, THEN IT COULD BE PRESENTED IN OPEN SESSION.
>> CONNIE, IF I MAY, CHAIR, THAT MISINTERPRETS A, WHICH IS TO FINALIZE EVALUATION OF OFFICE SPACE NEEDS FOR DEPARTMENTS CURRENTLY LOCATED WITHIN CITY HALL.
IT'S NOT LOOKING AT THE MARKET FOR REAL ESTATE, IT'S SIMPLY LOOKING AT OFFICE SPACE NEEDS OF CITY DEPARTMENTS.
IS THAT SUBJECT TO EXECUTIVE PRIVILEGE?
>> NOW, I THINK THAT BRINGS UP A GOOD POINT THAT AS WE MOVE FORWARD WITH THESE DISCUSSIONS, THERE'S BEEN ALLEGATIONS THAT THIS HASN'T BEEN TRANSPARENT ENOUGH, AND I THINK WE HAVE A DUTY TO THE PUBLIC AS WELL TO MAKE SURE THIS IS AS TRANSPARENT AS POSSIBLE AND CONTINUES TO BE THAT WAY MOVING FORWARD, JUST LIKE WE HAVE A DUTY TO BE FISCALLY RESPONSIBLE IN OUR DECISION MAKING HERE.
TO THE EXTENT ITEMS NEED TO GO TO EXECUTIVE SESSION, WE JUST NEED TO CLEARLY EDUCATE COUNCIL ON THAT, MYSELF INCLUDED SO THAT WE DON'T FALL INTO TRAPS IN THAT AREA. MR. ROTH.
I WAS GOING TO SUGGEST IF IT'S APPROPRIATE THAT MAYBE SOME DIRECTION BE GIVEN TO THE STAFF TO INVESTIGATE PROCURING SOME ESTIMATES OR BIDS FOR A STRUCTURAL ENGINEERING CONSULTANT, SO THAT AS PART OF THE OVERALL PLANNING TO DO THAT.
MAYBE IT'S ALREADY IMPUTED IN SECTION D, BUT IT MIGHT BE SOMETHING TO CLARIFY TO ALLOW THEM TO ACTUALLY GET US SOME ESTIMATES AND TIME FRAMES ON WHAT THAT WORK WOULD BE DONE.
>> YEAH. I THINK THAT'S A GOOD QUESTION FOR STAFF, TO WHAT EXTENT DOES ITEM 1D GIVE YOU GUIDANCE ON PROCURING THIRD PARTY HELP?
[00:50:01]
>> GOT YOU. WE'RE AT A LITTLE BIT OF A DEFICIT ON THE TIMELINE RELATED TO BEING ABLE TO DO SOME OF THOSE THINGS.
WE WOULD HAVE TO BE ABLE TO DO SOME DUE DILIGENCE FIRST TO SEE DEPENDING ON EXACTLY WHAT TYPE OF ANALYSIS THAT WE WERE GOING TO BE DOING, AND THEN HOW WE COULD CONTRACT IT AND MAKE SURE THAT WE MET YOUR FEBRUARY TIMELINE.
I DON'T KNOW THAT I COULD COMMIT TO ANY PARTICULAR ITEM.
WE WOULD ENDEAVOR, AS COUNCILMAN ROTH HAS ASKED TO FOCUS ON THE STRUCTURAL, BUT I DON'T KNOW IF WE COULD MEET THE, I FORGET I TRIED TO WRITE IT DOWN, FEBRUARY, SOMETHING DEADLINE FOR.
>> [OVERLAPPING] FEBRUARY 2026. HOW ABOUT THIS? WHEN WE COME BACK TO FULL COUNCIL NEXT WEEK ON THIS ITEM? JUST GIVE US AN IDEA THEN OF WHAT THE THIRD PARTY ASSISTANCE WOULD LOOK LIKE, BECAUSE THAT'S A QUESTION I HAVE TOO.
WE'RE NOT HAVING ANY INTERRUPTIONS IN THE AUDIENCE.
THIS IS NOT PUBLIC SPEAKING OPPORTUNITY RIGHT NOW.
>> UNDERSTOOD SIR I HEARD YOU LOUD AND CLEAR. GOT YOU.
>> THANK YOU. WITH THAT BEING SAID.
>> I WAS JUST GOING TO SUGGEST THEN BASED ON COUNCIL MEMBER RIDLEY'S CONCERNS THAT WE AMEND SECTION 1F AND PUT IN JUST MAKE IT CLEAR THAT SOME OF THE ITEMS WILL BE MORE APPROPRIATE FOR THE REGULARLY SCHEDULED FINANCE COMMITTEE MEETING, AND OTHER ITEMS WOULD THEN FALL UNDER THE EXECUTIVE SESSION.
JUST MAKE THAT DISTINCTION, THAT SOME OF THESE ITEMS WILL BE APPROPRIATE AND SHOULD BE IN A PUBLIC MEETING SETTING.
>> MR. CHAIR, IF I COULD JUST RESPOND TO THAT.
THAT'S MY INTENTION, BUT IT COULD BE ACCOMPLISHED VERY SIMPLY BY JUST REMOVING THE REFERENCE TO IN EXECUTIVE SESSION SO THAT THAT DECISION CAN BE MADE LATER IN FEBRUARY AS TO WHAT SHOULD GO INTO EXECUTIVE SESSION AND WHAT SHOULDN'T?
>> I THINK THAT MAKES SENSE. ANY OBJECTION TO THAT?
>> I THINK WE'RE ALL IN AGREEMENT.
WE'RE NOT HAVING ANY CONVERSATIONS IN THE AUDIENCE RIGHT NOW.
YOU SIGN UP FOR PUBLIC SPEAKING IF YOU LIKE TO FOR WEDNESDAY.
THANK YOU, EVERYBODY. WE WILL MOVE ON NOW TO ITEM, IS IT 1B? LET'S SEE.
ITEM B, ANNUAL REPORT OF THE CITY'S PUBLIC FUNDS INVESTMENT POLICY AND PROPOSED CHANGES IN QUARTERLY INVESTMENT REPORT, THIRD QUARTER FISCAL YEAR 2024/25? COME ON DOWN.
>> GOOD AFTERNOON, CHAIRMAN WEST, MEMBERS OF THE COMMITTEE.
THIS IS JENNY KERZMAN, THE ASSISTANT DIRECTOR OF TREASURY.
THIS AFTERNOON, I'M GOING TO BRIEF YOU ON THE ANNUAL REVIEW OF THE CITY'S INVESTMENT POLICY.
THIS IS SOMETHING THAT WE DO ON ANNUAL BASIS.
>> WE'RE JUST GOING TO PAUSE FOR A MOMENT WHILE WE ESCORT THIS YOUNG OUT.
>> I THINK MY BRIEFING WOULD BE PROBABLY SIMPLER.
>> I THINK WE GOT THE MESSAGE.
YEAH, YOU DON'T NEED TO COME BACK TO PUBLIC SPEAKING.
>> THE BRIEFING TODAY WILL COVER A BACKGROUND ON THE INVESTMENT POLICY.
WE'LL DISCUSS THE ACTUAL INVESTMENT POLICY AND STAFF RECOMMENDATIONS AND NEXT STEPS.
WE ALSO INCLUDE TO THE QUARTERLY INVESTMENT REPORT FOR THE THIRD QUARTER.
THIS IS A REPORT THAT YOU USUALLY RECEIVE JUST IN A MEMO.
BUT SINCE WE'RE GIVEN THIS BRIEFING, WE DECIDED TO INCLUDE IT IN CASE THAT YOU HAVE ANY QUESTIONS.
GREAT. CHAPTER 2256 OF THE TEXAS GOVERNMENT CODE.
IT'S KNOWN AS THE PUBLIC FUNDS INVESTMENT ACT.
PFIA REQUIRES THE CITY TO DO AN ANNUAL ADOPTION OF THE WRITTEN INSTRUMENT, STATING THAT HE HAS REVIEWED THE POLICY AND APPROVE ANY CHANGES.
OUR POLICY ADDRESSES SAFETY OF PRINCIPLE, LIQUIDITY YIELD, DIVERSIFICATION, AND MATURITY WITH PRIMARY EMPHASIS ON THE SAFETY OF THE PRINCIPLE.
SINCE 1997, THE CITY HAS ADOPTED AND REVIEW THE INVESTMENT POLICY, TAKING INTO CONSIDERATION ANY CHANGES TO THE PFIA.
MOST RECENTLY, IT WAS APPROVED LAST YEAR WITH RESOLUTION 241619.
AT THAT TIME, VERY MINOR CHANGES WERE MADE.
THE CITY'S INVESTMENT POLICY IS MANAGED AND
[00:55:03]
ALL THE INVESTMENTS ARE MANAGED BY THE TREASURY DIVISION OF THE CITY CONTROLLER'S OFFICE, AND WE MANAGE THE POLICY AND THE PORTFOLIO FOLLOWING THE GUIDELINES IN ACCORDANCE WITH THE FEDERAL AND STATE LAW AND CITY CHARTER.OUR INVESTMENT COMMITTEE MEETS ON A QUARTERLY BASIS AND WE REVIEW THE INVESTMENT PORTFOLIO, ECONOMIC TRENDS, COMPLIANCE REQUIREMENTS, SOME OTHER MATTERS, INCLUDING ALWAYS MAINTAINING THE SAFETY OF THE POLICY OF SAFETY, LIQUIDITY AND YIELD.
THE INVESTMENT COMMITTEE IS COMPOSED OF OUR CHIEF FINANCIAL OFFICER, CITY CONTROLLER, MYSELF AS THE ASSISTANT DIRECTOR OF TREASURY, THE DIRECTOR OF BUDGET AND MANAGEMENT SERVICES, AND THE DIRECTOR OF DALLAS WATER UTILITIES.
OUR POLICY WAS ONCE AGAIN CERTIFIED BY THE GOVERNMENT TREASURES ORGANIZATION OF TEXAS, KNOWN AS GTOT.
THIS IS A CERTIFICATION RECEIVED EVERY TWO YEARS, AND IT'S JUST INDICATING THAT THE POLICY HAS BEEN REVIEWED AND THAT MEETS THE STANDARDS OF GTOT AND THE PFIA.
THE CITY INVESTMENT POLICIES ALSO, WE'RE WORKING DIRECTLY WITH MEEDER PUBLIC FUNDS.
MEEDER, THEY ARE OUR INVESTMENT ADVISORS.
THEY PROVIDE SERVICES, INCLUDING THE REVIEW AND REPORTING OF THE INVESTMENT ACTIVITY, ANY ANALYSIS, EVALUATION, AND PRESENTS OPTIONS TO THE IN CASE THAT WE'RE GOING TO BE WORKING ON THE FOLLOWING QUARTER.
THE CONTRACT THAT WE HAVE WITH MEEDER PUBLIC FUNDS WAS SIGNED BY A THREE-YEAR CONTRACT WITH TWO, ONE YEAR OPTIONS.
WE JUST EXERCISE THE FIRST ONE YEAR EXTENSION THROUGH SUPPLEMENTAL AGREEMENT NUMBER 1 BACK IN FEBRUARY OF 2025.
WE DO HAVE A REPRESENTATIVE FOR MEEDER PUBLIC FUNDS HERE PRESENT IN CASE THAT YOU HAVE ANY QUESTIONS ON THAT.
A RECENT REVIEW WAS DONE IN JULY 28TH OF THIS YEAR WHEN WE ANALYZE AND REVIEW THE PORTFOLIO IN THE CURRENT MARKET, AND WE ALSO AS REQUIRED ANNUALLY REVIEW THE INVESTMENT POLICY AND ANY CHANGES THAT WAS DONE BY THE PFIA.
IT'S WORTH TO NOTE THAT NO AMENDMENTS WERE MADE TO THE PFIA DURING THIS 2025 LEGISLATIVE SESSION.
LASTLY, OUR STAFF RECOMMENDATIONS AND NEXT STEPS IS TO ADD THE ADVISOR OR INVESTMENT ADVISORS.
WE HAVE NO CHANGES TO THE INVESTMENT STRATEGIES IN THE INVESTMENT POLICY, AND NO CHANGES ARE NEEDED FOR THE CURRENT FISCAL YEAR.
THE INVESTMENT COMMITTEE RECOMMENDS INCORPORATING THE FOLLOWING AMENDMENTS TO THE CITY'S INVESTMENT POLICY.
IT JUST A SMALL CHANGE ON SECTION 8.7, JUST TO ALLOW THE INVESTMENT OF COMMERCIAL PAPER TO HAVE A MAXIMUM MATURITY OF 365 DAYS.
RIGHT NOW IT IS LOCKED AT 270.
SECTION 13.0, THAT IS TO UPDATE THE MAXIMUM STATED MATURITY FOR THE COMMERCIAL PAPER 2365 FROM THE 270 DAYS.
OF COURSE, WE'RE ALSO ASKING FOR THE UPDATED POLICY APPROVAL DATE, AS THIS IS AN ITEM THAT IT GETS APPROVE EVERY YEAR IN THE APPENDIX B TO REFLECT THE UPDATED RESOLUTION.
THE INVESTMENT COMMITTEE RECOMMENDS TO CITY COUNCIL APPROVAL OF NOVEMBER 12TH AGENDA ITEM NUMBER 25-30758 TO ADOPT THE CITY'S INVESTMENT POLICY AND INVESTMENT STRATEGIES REGARDING FUNDS UNDER THE CITY'S CONTROL AND MANAGEMENT.
>> JENNY, LET ME INTERRUPT BEFORE YOU MOVE ON.
THANK YOU SO MUCH, JENNY FOR THAT.
BUT BEFORE SHE MOVES INTO THE NEXT SECTION, JUST WANT TO MAKE SURE THAT IS REALLY CLEAR, THAT WE'RE DOING THIS ANNUALLY BECAUSE WE'RE REQUIRED TO BY STATE LAW.
WE BRING THIS BEFORE THE CITY COUNCIL EACH AND EVERY YEAR TO REVIEW THE POLICY, MAKE ANY CHANGES THAT ARE NECESSARY, AND ADOPT THE POLICY FOR THE NEXT YEAR.
ON THE LAST PAGE THAT JENNY WAS ON PAGE 9, THERE'S SOME VERY MINOR CHANGES, CHANGING THE DATE THAT IS ON THE POLICY BECAUSE IT'S GOING TO HAVE A NEW APPROVAL DATE, ETC, THINGS LIKE THAT.
THE OTHER TWO SECTION 8.7 AND SECTION 13.0, BOTH HAVE TO DO WITH EXTENDING THE COMMERCIAL PAPER MATURITY FROM 270 DAYS TO 365 DAYS.
PRETTY MINOR CHANGES IN THE OVERALL POLICY, BUT IT IS A REQUIREMENT THAT THE CITY COUNCIL ADOPT AND WRITING THIS POLICY ANNUALLY. THAT'S WHY WE'RE HERE.
BUT SINCE WE DID COME BEFORE YOU TODAY,
[01:00:02]
I DID WANT JENNY TO GO AHEAD AND WALK THROUGH THE MOST RECENT QUARTERLY REPORT SO THAT YOU'LL JUST HAVE AN UNDERSTANDING OF HOW WE DO INVEST THE FUNDS AND HOW WE DO MONITOR THEIR FUNDS IF YOU'RE OKAY WITH THAT, CHAIR. THAT'S GREAT.>> GREAT. THANK YOU, JACK. IF WE MOVE TO PAGE 11, WHICH IS THE QUARTERLY INVESTMENT REPORT.
THIS IS A REPORT THAT WE PRESENT TO THE INVESTMENT COMMITTEE.
THIS THIRD QUARTER WAS PRESENTED BACK IN JULY OF 2028.
THE REPORT IS OBVIOUSLY COMP IN COMPLIANCE WITH THE STATE AND STATE OF TEXAS PUBLIC FUNDS INVESTMENT ACT AND THE CITY'S INVESTMENT POLICY.
HAPPY TO REPORT THAT AS OF JUNE 30TH, 2025, OUR OPERATING PORTFOLIO BALANCE WAS A 4,285,757,098, AND THIS PORTFOLIO EARN ACTUAL EARNINGS OF 47,134,184 THE QUARTER.
THE OPERATING PORTFOLIO HAS A WEIGHTED AVERAGE YIELD OF 4.23 AND A WEIGHTED AVERAGE MATURITY OF 1.91 YEARS.
THE FOLLOWING PAGES, AS YOU PROBABLY SEEN IN THE PREVIOUS REPORTS THAT WE HAVE PRESENTED, AND SUBMITTED THROUGH A MEMO.
HERE YOU'LL SEE THAT THIS CHART REFLECTS THE BOOK BALANCE FOR THE SEVERAL PAST FISCAL YEARS.
THE THIRD QUARTER REACHED 4.285, MARKING A 21.76% INCREASE COMPARED TO THE SAME QUARTER OF LAST YEAR.
>> THEN PAGE 13, THIS GIVES YOU A SNAPSHOT OF THE INTEREST EARNED FOR THE QUARTER, THE PORTFOLIO EARN, 47,134,180, AND THIS IS FOR THE ENTIRE PORTFOLIO.
>> I'M SORRY, I'M GOING TO INTERJECT AGAIN, JENNY.
THIS IS INTEREST EARNED ON THE ENTIRE PORTFOLIO.
THAT INCLUDES OUR WATER UTILITY FUNDS, OUR AVIATION FUNDS, OUR GENERAL FUND, BOND FUNDS.
INTEREST EARNINGS ARE ALLOCATED ACCORDING TO THE BALANCE OF THOSE FUNDS.
THIS IS NOT ALL MONEY THAT COMES INTO THE GENERAL FUND, $47 MILLION, THAT'S GREAT FOR THE QUARTER, BUT IT IS ALLOCATED TO THE APPROPRIATE FUND IN WHICH IT WAS EARNED. THANK YOU, JENNY.
>> THANK YOU. PAGE 14 TALKS ABOUT THE ASSETS COMPOSITION.
THIS IS SOMETHING THAT IS COVERED IN THE SECTION 13.0 OF THE CITY'S INVESTMENT POLICY, THAT ESTABLISHES THE APPROPRIATE DIVERSIFICATION ASSETS AND THE MAXIMUM MATURITY OF EACH INVESTMENT CATEGORY.
AS YOU CAN SEE IN THE CHART BELOW, THAT SHOWS YOU HOW THE PORTFOLIO IS ALLOCATED THROUGH A DIFFERENT INVESTMENT TYPES OF CASH MONEY MARKETS.
GIPS OUR LOCAL GOVERNMENT INVESTMENT POOL, COMMERCIAL PAPER, MUNIS, AGENCIES, AND TREASURIES.
WE MAINTAIN A VERY GOOD ASSET COMPOSITION TO MAKE SURE THAT NOT ALL OF THE ITEMS, ALL OF OUR INVESTMENTS, ARE PUT IN THE SAME BUCKET.
PAGE 15 IS JUST SHOWS YOU THE WEIGHTED AVERAGE YIELD FOR THE THIRD QUARTER, AS YOU CAN SEE THE AVERAGE YIELD FOR THE LAST SEVERAL FISCAL YEARS.
SAME THING ON PAGE 16, THIS TALKS ABOUT THE WEIGHTED AVERAGE MATURITY.
THE ONE IS THE AVERAGE TIME IT TAKES FOUR SECURITIES IN A PORTFOLIO TO MATURE, WEIGHTED IN PROPORTION TO THE DOLLAR AMOUNT THAT IS INVESTED IN THE PORTFOLIO.
IT'S JUST A FEW DAYS' DIFFERENCE FROM PREVIOUS QUARTER.
THAT IS THE LAST PAGE OF MY PRESENTATION.
IT JUST INCLUDES A COPY OF THE INVESTMENT POLICY SHOWING THE CHANGES THAT WE ARE REQUESTING.
>> IF YOU WERE TO LOOK THROUGH IT, YOU WILL SEE FOUR RED LINE ITEMS THAT WERE DETAILED ON A PREVIOUS PAGE.
THERE'S NOT A LOT OF RED LINES IN THERE. THERE'S FOUR.
THIS IS ALREADY BEEN PLACED ON THE DRAFT AGENDA FOR NEXT WEEK, CITY COUNCIL.
WE HOPE THAT YOU WOULD SUPPORT THIS.
WE'VE ALREADY MOVED IT FORWARD FOR COUNCIL VOTE NEXT WEEK.
IF THERE'S ANY CONCERNS, WE WOULD DEFINITELY WANT TO KNOW ABOUT THOSE.
>> THANK YOU. YOU JUST STOLE MY THUNDER.
I WAS GOING TO ASK THE COLLEAGUES TO CHIME IN ON THAT, BUT YOU MADE IT EASIER FOR ME.
FROM MY PERSPECTIVE, I'VE SEEN THIS EVERY YEAR SINCE I'VE BEEN ON HERE.
SEEMS LIKE WE'RE PREPARED FOR THE NEXT YEAR.
I'LL JUST ASK FOLKS IF THEY CAN CHIME IN. QUESTIONS.
[01:05:02]
>> THANK YOU. ON PAGE 9, YOU OUTLINED THE CHANGES TO THE CITY'S INVESTMENT POLICY.
IS THIS OR THESE RECOMMENDATIONS ON THE ADVICE OF METERS, OR DID THIS COME FROM THE COMMITTEE, OR BOTH?
>>BOTH. THE INVESTMENT COMMITTEE MEETS WITH THE GUIDANCE OF OUR INVESTMENT ADVISORS, AND WE JUST REVIEW CERTAIN ITEMS THAT, IF WE MAKE THOSE MINOR CHANGES, IT COULD BE BENEFICIAL AND ALLOW US TO EARN A HIGHER INTEREST.
>> THEN ON PAGE 11, WE HAVE THE AVERAGE YIELD OF 4.23%.
IS THIS A STANDARD YIELD FOR A MUNICIPALITY OF OUR SIZE OR OF OUR BUDGET OR FUND?
>> WE DEFINITELY DO A LOT BETTER THAN MANY CITIES DUE TO THE SIZE OF OUR PORTFOLIO.
IT ALSO INCLUDES A LOT OF WORKING CLOSELY WITH METER AND THE MANAGEMENT OF THE CASH THAT WE HAVE.
YEAH, IT IS VERY GOOD COMPARED TO OTHER CITIES.
>> ONE THING THAT I WOULD ALSO ADD TO THAT, IF I MAY.
WHAT IS THE PURPOSE OF THE INVESTMENT? WE HAVE A NEED FOR CASH FLOW.
WE HAVE PAYROLL TO MAKE, WE HAVE DEBT SERVICE PAYMENTS TO MAKE.
THIS IS PRIMARILY OUR OPERATING FUNDS, WHICH IS DIFFERENT THAN SOME OF YOU HAVE A LOT OF INTEREST IN THE PENSION INVESTMENTS.
THEY'RE INVESTING FOR THE LONG TERM.
THEY WOULD INVEST DIFFERENTLY THAN WE WOULD INVEST.
JENNY SHOWS ME EVERY MONTH HOW WE'RE GOING TO HAVE CASH AVAILABLE TO MAKE THE DEBT PAYMENT, HOW WE'RE GOING TO HAVE CASH AVAILABLE TO MAKE THE PAYROLL THAT'S REQUIRED EVERY TWO WEEKS.
WE HAVE TO HAVE MATURITIES COMING DUE SO THAT WE CAN MEET THOSE OBLIGATIONS.
SHORTER INVESTMENT WILL YIELD A SMALLER RETURN THAN IF WE WERE PERHAPS GOING AT A LONGER 20 OR 30-YEAR TYPE OF SCENARIO.
>> THANK YOU, MR. CHAIR. THANK YOU FOR THIS PRESENTATION.
IT BRINGS BACK MEMORIES FOR ALL OF THESE THINGS.
I DID HAVE ONE QUESTION ON SLIDE 12.
I SAW IN THE FISCAL YEAR 2024/25.
I SAW THAT DECLINE FROM THE SECOND QUARTER TO THE THIRD QUARTER OF ABOUT 389 MILLION.
WHAT WAS THAT? THEN WE'LL START THERE, AND THEN MY SECOND QUESTION, BEFORE I FORGET, IS GOING TO BE ABOUT THE NEED TO EXTEND THE COMMERCIAL PAPER.
WHY WAS THAT FROM 270 TO 365 DAYS?
>> THANK YOU FOR THE QUESTION.
IF YOU'RE LOOKING AT THE THIRD QUARTER, IF YOU THINK ABOUT WHAT THE THIRD QUARTER IS FOR US.
>> YOU HAVE THE DEBT SERVICE PAYMENT, AND THERE'S NOT A LOT OF MONEY COMING IN INTO THE CITY.
THESE OUR LARGEST SOURCE OF REVENUE, AND THAT STARTS COMING IN DECEMBER, LATE DECEMBER, EARLY JANUARY.
DURING THIS TIME, THE PORTFOLIO USUALLY GOES DOWN.
>> PERFECT. THAT WAS IT. I JUST SEE AND THEN I THOUGHT THAT'S WHAT IT WAS, BUT I SEE THERE'S A GREATER DECLINE THIS YEAR, AND IT'S BECAUSE OF THE LACK OF REVENUE COMING IN, WHICH SHOWS, PERFECT.
>> WHICH IS JUST BECAUSE OUR REVENUE IS NOT CONSISTENT EVERY MONTH.
MOST PEOPLE PAY THEIR PROPERTY TAX IN DECEMBER OR JANUARY.
YOU WILL SEE A LARGE AMOUNT OF REVENUE COMING INTO OUR FUND AT THAT POINT, AND WE'LL SPEND IT DOWN THE REST OF THE YEAR.
WE HAVE CERTAIN POINTS DURING THE YEAR, AND FEBRUARY AND AUGUST, WHERE WE HAVE DEBT SERVICE PAYMENTS.
YOU'LL SEE LARGE OUTFLOWS AT THAT TIME.
WE DON'T PAY DEBT EVERY SINGLE MONTH.
THOSE ARE THINGS THAT JENNY IS WORKING VERY HARD TO MAKE SURE OUR CASH FLOW MATCHES THOSE DEMANDS.
>> PERFECT. THEN THE NEED TO EXTEND FROM 270, 365 DAYS DOESN'T SEEM LIKE A LOT, BUT WHAT DOES THAT DO?
>> IT REALLY JUST GIVES THEM MORE OPPORTUNITY.
THERE ARE SOME COMMERCIAL PAPER ITEMS THAT ARE TO THE 270, BUT THERE ARE SOME THAT COULD GO TO 365.
IT JUST ALLOWS US TO EXPAND OUR OPTIONS.
>> I THINK THAT WAS AN ANSWER TO MY QUESTION.
I WAS JUST CURIOUS WHY WE WERE AT THE 270 AND MOVING TO THE 365, AND MIGHT NOT HAVE DONE THAT EARLIER, BUT IT SOUNDS LIKE IT'S JUST PROVIDING THE FLEXIBILITY BECAUSE SOME FIT INTO ONE BUCKET AND SOME FIT INTO ANOTHER.
>> YES. VERY SIMPLE TALK ABOUT A VERY COMPLEX ISSUE.
>> YES. WE DID NOT HAVE COMMERCIAL PAPER IN OUR PROGRAM A FEW YEARS BACK.
WHEN WE ADDED TO THE PORTFOLIO, WE STARTED WITH THE 270 BECAUSE IT'S THE STANDARD COMMERCIAL PAPER AVAILABLE.
BUT THERE ARE DEFINITELY OTHER OPTIONS.
WE THOUGHT THIS WAS A GOOD OPPORTUNITY TO EXPAND OUR OPTIONS.
DO YOU HAVE THE GUIDANCE YOU NEED FOR COUNSEL?
>> I'M NOT HEARING ANY OPPOSITION TO WHERE WE'RE HEADED, SO THANK YOU FOR THAT, AND IT'LL BE ON THE AGENDA FOR NEXT WEEK, THE 12TH.
[01:10:03]
>> FANTASTIC. WE'RE GOING TO MOVE ON. THANK YOU.
WE'LL MOVE ON TO ITEMS C AND E. WE WILL TAKE THEM TOGETHER BECAUSE THEY BOTH INVOLVE OUR AUDITOR, AND WE'LL JUST INVITE MR. SWAN TO COME UP HERE FOR SOME QUESTIONS.
THERE IS AN ACTION ITEM ASSOCIATED WITH ITEM C. I WILL NORMALLY DON'T HAVE STAFF BRIEF ON THE MEMOS, BUT I AM GOING TO ASK MR. ISLAND TO STICK AROUND FOR ITEM D BECAUSE THERE WERE SOME QUESTIONS THAT CAME UP IN THE LAST COUNCIL MEMBER MEETING OF THE CITY CALENDAR AND THE BUDGET TIMELINE.
OTHER THAN THAT, WE'RE PROBABLY NOT GOING TO DO BRIEFINGS ON F AND G UNLESS YOU GUYS HAVE QUESTIONS.
MR. SWAN, DO YOU WANT TO GIVE US JUST A HIGH-LEVEL OVERVIEW OF OUR AUDIT PLAN FOR 2025/26, AND YOU CAN TOUCH ON THE WEAVER EXTERNAL AUDITOR AS WELL, IF YOU WOULD.
>> OKAY. LET ME SEE WHERE IN YOUR AGENDA.
>> I DON'T THINK WE NEED TO GET IN DEPTH, FIVE MINUTES AS GOOD.
JUST GIVE US A HIGH LEVEL, PLEASE.
>> YOU SAID RELATED TO D, WE'RE TALKING ABOUT, THAT'S ITEM D.
>> I'M TALKING ABOUT ITEM C AND ITEM E.
>> LET ME START OFF. E IS NOT MY RESPONSIBILITY.
>> GET THAT STARTED OFF. YES, ON AN ANNUAL BASIS, WE PREPARE AN ANNUAL AUDIT WORK PLAN FOR THE INTERNAL AUDIT STAFF THAT REQUIRES APPROVAL FROM THE B GPFM COMMITTEE, NOW THE COMMITTEE OF FINANCE.
FULL RECOMMENDATION TO THE FULL COUNCIL, AND WE HAVE TO GET APPROVAL FROM THE FULL COUNCIL BASED ON THE PROCEDURES DEVELOPED BY THE COUNCIL FOR OUR OFFICE FOR THE PLAN ON AN ANNUAL BASIS.
WHAT'S PRESENTED HERE IS OUR RECOMMENDED FISCAL YEAR 2026 AUDIT WORK PLAN TO UTILIZE 23,000 RESOURCE HOURS TO COMPLETE 20 AUDIT ENGAGEMENTS IN THE FISCAL YEAR.
WHAT YOU'LL SEE ALSO ON HERE IS THERE'S SOME QUESTIONS ON WE GET THAT WE TRIED TO USE THIS A STANDARD BENCHMARK OF 1,000 HOURS FOR THE PLANNING PROCESS.
IT'S NOT AN EXACT SCIENCE TO ANY OF THAT.
THAT WE AVERAGE CLOSER TO 1,100 HOURS PER PROJECT, BUT THE GOAL IS TO TRY TO GET PEOPLE TO GET DOWN TO 1,000 HOURS PER PROJECT.
IT HELPS US PLAN ON WHAT'S OUR CAPACITY.
IT SEEMS TO WORK PRETTY WELL FOR US.
WE ALSO PUT NEW AUDITS ON MORE AUDITS CAN BE ACCOMPLISHED TO HAVE THAT CARRY FORWARD INTO THE NEXT, SO WE HAVE A SLATE THAT'S AVAILABLE THAT'S BEEN APPROVED A PORTFOLIO TO CHOOSE FROM.
AS WE GO THROUGH THE YEAR, WE'VE RUN INTO DEPENDENT ON THE DEPARTMENT.
THEY'RE IMPLEMENTING A BRAND NEW COMPUTER SYSTEM.
IT'S JUST NOT A GREAT TIME TO BE DOING THE AUDIT THEN.
THEN WE NEED TO KNOW DELAY, DEFER UNTIL LATER IN THE YEAR, AND GO TO THE NEXT AUDIT ON THE AUDIT ENGAGEMENT.
HIGHLIGHTED IN YELLOW IS SOMETHING WE ADDED, I WANT TO SAY LAST YEAR OR TWO YEARS AGO, WAS PRIORITIZATION OF WHICH AUDITS WE WOULD PRIORITIZE ON THAT PORTFOLIO LIST.
OUR RECOMMENDATION WE'RE SEEKING A MOTION FOR A RECOMMENDATION TO APPROVE THE FULL AUDIT PLAN TO THE CITY COUNCIL AND THE MAYOR.
>> THANK YOU. JUST A COUPLE OF QUESTIONS, AND THEN I'LL GO AROUND THE HORSESHOE.
ON THE WEAVER ITEM FOR IME, THAT DOES NOT COME OUT OF YOUR HOURS.
>> THE EXTRA AUDIT IS TOTALLY SEPARATE THAT THE CONTROLLER'S OFFICE IS THE PROPONENT OF THAT CONTRACT.
>> IT DOES GET CONFUSED SOMETIMES BECAUSE WE DO DO CO-SOURCING AUDIT HISTORICALLY, AND WEAVER IS ONE OF OUR CO-SOURCING AUDIT PARTNERS, BUT THEY USE A DIFFERENT STAFF FOR THAT WORK.
>> GOT IT. THANK YOU. YOU MENTIONED THE 1,000 HOURS TAG THAT YOU PUT ON MOST OF THE AUDITS.
OF THE 17 19 AUDITS, THEY'RE ALL 1,000 HOURS, AND THAT'S JUST BECAUSE YOU DON'T KNOW EXACTLY.
>> WE DON'T KNOW PART AUDIT PROCESS.
WE SPENT ABOUT 500 HOURS IN THE PLANNING PROCESS TO EVALUATE THE RISK, WHAT THE BEST OBJECTIVES THEY HAD THE MOST VALUE FOR THE PROCESS, AND THEN DETERMINE WHAT ADDITIONAL WORK HAS TO BE DONE TO COMPLETE THAT OBJECTIVE.
THE TWO THAT YOU'RE TALKING ABOUT ARE 500 OR ROUTINE THINGS THAT WE KNOW THAT WE LIAISON WITH, THAT WE KIND OF KNOW WHAT THAT WORK IS.
THE VERIFICATION OF INVOICES FOR THE FRANCHISE FEES, CLAIMS, AND THE SALES AND USE TAX CLAIMS WHICH IS ALSO OUTSOURCED TO A THIRD PARTY. BUT THAT'S.
>> THEN THE SECOND QUESTION I HAD THAT I WANT TO BRING UP NOW IS, I NOTICED THAT OF YOUR CURRENT WORK PLAN, 25% ROUGHLY OF YOUR PLANNED ITEMS ARE COMPLETE,
[01:15:02]
AND FOLLOW UP ON LAST YEAR'S WORK ITEMS. IS THAT PRETTY NORMAL TO HAVE THAT KIND OF CARRYOVER?>> IT'S NORMAL, IT JUST DEPENDS ON THE YEAR OR IF WE START AUDIT, WE COULD HAVE WAITED UNTIL A PLAN IS APPROVED AND NOT WORK OFF THE ALREADY PRE-APPROVED PORTFOLIO, AND IT WOULD BE LESS.
BUT WE NEED TO KEEP STAFF BUSY SO WE CAN CONTINUE TO START NEW THIS YEAR.
WE HAPPEN TO START SEVERAL AUDITS IN THE LAST QUARTER, THE LAST TWO MONTHS, NEW AUDITS, SO THERE'S A LOT MORE TIME TO GET COMPLETED.
BUT WHAT I DID CALCULATE FOR THE AVAILABLE HOURS IT WAS 32% IS CARRYOVER AUDITS.
PRIOR YEAR, THAT WAS 16%, BUT IN 2024, THAT WAS BACK TO 30%.
IT JUST DEPENDS ON THE YEAR, THE TIMING OF HOW PROJECTS INITIATED.
>> THANK YOU. I SENT TWO OTHER QUESTIONS THIS MORNING EARLIER.
CAN YOU JUST RESPOND TO THOSE ON MEMO? I CAN RESEND THEM IF YOU NEED ME TO.
THEN YOU ASKED ABOUT HOW WELL ON THE CARRY FORWARD AND THE ESTIMATES FOR THE CARRY FORWARD AND HOW THAT COMPARED TO THE PRIOR YEAR.
IN THE PRIOR YEAR, WE WERE 20% UNDER WHAT OUR ACTUAL WAS.
>> THAT WAS ON THE AND THEN THE PRIOR AUDIT FOLLOW-UP ON PAGE 15. WE CAN.
>> FOR THE WORK PLAN THAT WE'RE WORKING ON RIGHT NOW, OR THE 25 WORK PLAN.
WE HAD 3,700 HOURS FOR CARRY FORWARD, AND WHAT WE ESTIMATED, AND WE ACTUALLY BOOKED 4,400 HOURS.
IT WAS 20% MORE THAN WHAT WE HAD ESTIMATED AT THE TIME.
AND SOME OF THE AUDITS, AS YOU GO THROUGH THE AUDIT, ONE OF THEM WE KNOW IS, LIKE, THE FIREARMS REQUIRED ADDITIONAL WORK THAN WE HAD ANTICIPATED AS WE CONTINUED THROUGH THE AUDIT PROCESS.
>> I KNOW I HAD SOME QUESTIONS AND YOU WERE VERY NICE AND CAME TO MY OFFICE AND WALKED ME THROUGH THOSE.
I THINK AT THIS POINT, I DO NOT HAVE ANY FURTHER QUESTIONS, BUT I APPRECIATE YOUR TIME EARLIER.
>> THANK YOU, MAYOR PRO TEM. COUNCILWOMAN WILLIS.
>> THANK YOU. THERE'S ONE ITEM ON PAGE 8, AND I THINK WHAT I'M THINKING OF MAY ACTUALLY GO OUTSIDE OF THIS DESCRIPTION, OR MAYBE THIS WOULD BE BETTER IN 2027, BUT IT'S ABOUT PROCUREMENT, AND IT'S ABOUT THE CITY'S END-TO-END PROCUREMENT CYCLE.
IS IT TIMELY AND REASONABLE? THEN HOW DO WE COMPARE TO OTHER CITY'S PROCUREMENT MODELS? GIVEN THAT WE JUST ENACTED A CHANGE IN APPROVAL LEVELS BY THE CITY MANAGER ON CERTAIN THINGS, I THINK THAT'S OUTSIDE.
THAT APPROVAL WOULD HAPPEN, I GUESS, WOULD BE THE ENDPOINT OF THE PROCUREMENT, IS WHEN IT'S APPROVED, OR DO WE TAKE IT THROUGH TO CONTRACT COMPLIANCE ON AN AWARDED JOB.
BECAUSE WHAT I'M GETTING AT IS, I'D LOVE TO SEE WHAT IMPACT THIS IS MAKING.
OF COURSE, WE JUST APPROVED IT.
IF YOU STARTED THIS AUDIT TOMORROW, IT'S NOT GOING TO REFLECT THAT, OR IF WE SHOW A COMPARISON BETWEEN WHERE WE WERE AND HOW THIS IS ACTUALLY PLAYING OUT ONCE IT WAS ENACTED.
>> WE COULD TAKE IT OFF THE PRIORITIZATION, YELLOW COATED AND MAKE IT WHITE COATED, SO IT'S DEFERRED TOWARD THE END OF THE YEAR OR YOU COULD RECOMMEND TO REMOVE IT FROM THE PLAN IF THAT'S WHAT YOU'D LIKE.
>> THE OTHER OPTION WOULD BE TO GO ON AND PROCEED WITH THIS BECAUSE THIS IS A LOOK BACK.
I DON'T KNOW HOW FAR BACK IT IS.
>> TYPICALLY, WE'LL GO BACK TO PHYSICAL YEARS.
>> THEN TO SEE WHAT THE PERFORMANCE IS.
MAYBE YOU GO ON AND PROCEED WITH THIS AND DO THIS.
THEN IN A YEAR, WE CAN COME BACK AND SAY, WE'RE GOING TO DO NOW SEE WHAT THE IMPACT WAS OF CLOSING THE FRONT END OF THE PROCUREMENT PROCESS WHILE STILL HAVING THE OVERSIGHT AT THE BACK END.
THE OVERSIGHT COULD EVEN BE PART OF THAT AUDIT.
THEN ONE OTHER ONE WAS ALREADY UNDERWAY, BUT IT JUST SEEMED LIKE SUCH A NARROW SCOPE, AND I WAS WONDERING WHAT THE MOTIVATION WAS FOR IT.
IT WAS ONLY ALLOTTED AT 40 HOURS, AND IT WAS, PAGE 11 NUMBER 7.
IT'S COUNCIL AGENDA, DISTRICT APPROPRIATIONS PERFORMANCE.
IT WAS JUST TO LOOK AT ALL DISTRICT SPECIFIC ITEMS BETWEEN MAY 2022 AND OCTOBER OF 2022 TO SEE IF THINGS WERE STARTED OR COMPLETED.
COUNCILMEMBER ARNOLD HAD SUGGESTED IT.
IT'S JUST SUCH A NARROW PERIOD, I DON'T KNOW WHAT THE MOTIVATION FOR THIS WAS.
[01:20:04]
>> WELL, THIS WAS COUNCILMAN ARNOLD HAD ASKED ABOUT WE APPROVE PROJECTS AND I NEVER SEE ANY RESULTS FROM THAT WORK BEING DONE.
I'VE ALSO HAD A FORMER AUDIT COMMITTEE MEMBER IN A PRIOR LIFE WHO ALSO SAID, WE APPROVE ALL THESE AGENDA ITEMS WEEK AFTER WEEK, AND THEN I NEVER KNOW WHAT HAPPENS AFTER THAT.
I WOULD JUST LIKE TO SAY, NO, DO WE ACTUALLY DO WHAT WE CAN ASK FOR MANAGEMENT TO DO.
THAT WAS REALLY THE OBJECTIVE BEHIND THIS AUDIT TO SAY, IF YOU APPROVED A CAPITAL PROJECT, DID THEY START WORKING ON WHEN YOU APPROVED THAT CONTRACT? ARE THEY WORKING ON IT, OR ARE THEY JUST SITTING ON IT? WORK HAS BEEN COMPLETED NOW, IT'S SITTING AT THE CITY MANAGER'S OFFICE FOR ACKNOWLEDGMENT.
THAT'S THE 40 HOURS AS FOR OUR WRAP UP PROCESS TO GET OUR WORK PAPERS.
>> I FEEL LIKE AREN'T WE TRACKING THAT SOMEWHERE ELSE? THE OTHER THING IS, I MEAN, THIS HAS A SIX-MONTH TIME FRAME.
WE'RE TALKING ABOUT ACTIVATING AND GOING THROUGH POTENTIALLY TO COMPLETION.
THAT IS WHIPLASH TIMING AROUND HERE.
I JUST WONDERED WHY WE HAD THIS SUPER NARROW SCOPE OF SIX MONTHS.
>> WE WERE LOOKING A SAMPLE OF THE AGENDA.
THERE'S LOTS OF AGENDA ITEMS. WE'RE TAKING EVERYTHING OFF THE AGENDA IN THAT SIX MONTH PERIOD.
[OVERLAPPING] I SHOULD HAVE THAT REPORT IN FRONT OF ME. I DON'T HAVE TO MEMORIZE.
THERE WERE NUMEROUS AGENDA, THERE WAS NUMEROUS CAPITAL PROJECTS APPROVED DURING THAT SIX-MONTH PERIOD.
THEN WE'RE FOLLOWING UP AS OF THE SECOND QUARTER OF THE PHYSICAL YEAR, WHAT WAS THE STATUS? ARE ALL THOSE PROJECTS THEY'VE STARTED WORKING ON OR THERE IS REASONABLE WHY THERE WAS A DELAY.
>> HOW FAR ARE YOU INTO THIS ONE?
>> IT'S FINISHED. I HOPE I HAVE THAT REPORT.
>> IT JUST SEEMS ODD HERE, ESPECIALLY BACK FROM THEN WHEN WE WERE STILL COMING OUT OF COVID, AND WE WERE STILL WAITING FOR GEARS TO LOCK ON THINGS, BUT IF IT'S DONE, IT'S DONE.
I WON'T BELABOR THAT ONE. THANK YOU.
>> THANK YOU. I HAD A QUESTION ALONG THE SAME LINES OF MY COLLEAGUE, DEPUTY MAYOR PRO TEM WILLIS.
IN TERMS OF THE LIBRARY, I KNOW THEY'RE WORKING THROUGH A PROCESS.
>> TRY THE SYSTEM IMPLEMENTATION?
>> YEAH. AGAIN, THAT'S ONE OF THOSE WHERE IT'S SEPARATE FROM I KNOW THE LIBRARY IS GOING THROUGH THIS WHOLE REGIONAL RESTRUCTURING IDEA, AND THEY'RE LOOKING AT THAT, AND THEY'LL BE COMING BACK TO QUALITY OF LIFE TO BRIEF THAT.
I DON'T KNOW HOW TO ASK THIS CHAIR, BUT I GUESS AS THEY GO THROUGH AND DO THESE AUDITS, IS IT A GOOD USE OF YOUR TIME TO DO THE AUDIT NOW AS THEY'RE GOING THROUGH AND RESTRUCTURING OR RE-LOOKING AT HOW THEY WANT TO DELIVER LIBRARY SERVICES, I GUESS? IS THIS ONE THAT WOULD BE WORTH THE TIME, I GUESS?
>> THE APPROACH ON THIS ONE IS FOR THE NEW SYSTEM IMPLEMENTATION OF SOFTWARE AND CONFIGURATION.
MARTHA SPARKS DEPUTY CITY AUDITOR.
>> THIS IS MARTHA SPARKS DEPUTY CITY AUDITOR.
THE AUDIT IS NOT DESIGNED TO FOCUS ON THE RESTRUCTURING OF THE LIBRARY PROGRAMS, IT IS DESIGNED TO EVALUATE THE PRE IMPLEMENTATION FOR THE SYSTEM THE LIBRARY IS PLANNING TO UPGRADE FROM THEIR CURRENT AREA.
WE'RE LOOKING TO SEE IF THEY'RE ACTUALLY FOLLOWING CITY POLICIES FOR MAKING SURE THAT THE IMPLEMENTATION OF POLARIS AND OTHER SOFTWARE IS GOING IN ALIGNED WITH THE REQUIREMENTS THAT ARE SUPPOSED TO GO IN.
A SIGNIFICANT COMPONENT OF THIS IS THAT A LOT OF THE LIBRARY SYSTEMS ARE SUBJECT TO PUBLIC USE.
WE'RE LOOKING AT CONFIDENTIALITY AND PRIVACY OF THE CUSTOMERS AND HOW OUR SYSTEMS ARE GOING TO ENSURE THAT THOSE ARE IN PLACE WHILE IT'S BEING UPGRADED AND RE-IMPLEMENTED.
>> IT'S NOT THE SAME THING AS THE REDISTRICTING OR RESTRUCTURING OF THE PROGRAMS.
>> PERFECT. THANK YOU FOR THAT EXPERIENCE.
I JUST WANT TO MAKE SURE THAT ON THE OTHER SIDE OF WHATEVER THE LIBRARY IS GOING THROUGH, THAT THIS IS NOT SOMETHING THAT'S GOING TO GO AWAY.
YOU UNDERSTAND WHAT I'M SAYING? YOU GO THROUGH DO A AUDIT, AND THEN IN TWO YEARS FROM NOW, IT GOES AWAY, YOU WOULD HAVE WASTED TIME IN IT.
THAT'S ALL. THANK YOU FOR THAT EXPLANATION. I APPRECIATE IT.
>> I COULD ADD IT. IF WE GO TO THE LIBRARY AT THE TIME WHEN WE START THIS AUDIT AND THEY'RE SAYING IT'S GOING TO GO AWAY, THAT'S ONE OF THOSE WE WOULD COME BACK AND SAY, WE'LL DEFER THAT ENGAGEMENT IF IT DOESN'T MAKE SENSE AND MOVE ON TO THE NEXT ONE.
THAT'S WHY WE HAVE MORE AUDITS AND WE COULD PHYSICALLY GET ACCOMPLISHED.
>> FAIR. THEN I JUST PIGGYBACK ON WHAT DEPUTY MAYOR PRO TEM WILLIS WAS SAYING IN TERMS OF THE PROCUREMENT PIECE.
I THINK STARTING IT NOW, KEEPING IT IN A PRIORITY, I THINK IS GOOD, GO BACK A COUPLE OF YEARS,
[01:25:01]
BUT THEN ON THE END OF THIS COMPARING THE NEW PROCESS TO THOSE LAST TWO YEARS, I THINK WOULD BE AN INTERESTING JUST LITTLE CAVEAT TO THE REPORT ON THE OTHER SIDE OF THE 2026 REPORT, RATHER. THANK YOU.ANYBODY DOWN HERE? ARE WE GOOD? WE HAVE A MOTION.
>> BUSY DAY. I MOVE THAT THE FINANCE COMMITTEE RECOMMEND TO THE MAYOR AND CITY COUNCIL APPROVAL OF THE OFFICE OF THE CITY AUDITORS FISCAL YEAR 2026 RECOMMENDED AUDIT WORK PLAN.
>> ALL THOSE IN FAVOR SAY AYE.
>> MOTION PASSES. THANK YOU VERY MUCH.
LIKE I SAID, WE'RE NOT GOING TO BE BRIEFING EF.
WELL, DEFINITELY NOT E NOW, F OR G. IF ANYBODY HAS QUESTIONS, WE'LL GET TO THOSE NEXT, BUT I DO WANT MR. IRELAND TO TALK ABOUT THE CALENDAR A LITTLE BIT.
COLLEAGUES, SO THIS HAD COME UP AS A AMENDED CALENDAR BY ONE OF OUR COLLEAGUES WHO'S NOT ON THIS COMMITTEE.
I ASKED FOR THIS COMMITTEE TO REVIEW THE CALENDAR.
YOU ALL SUPPORTED THIS. THANK YOU SENDING THIS ITEM BACK TO THE FINANCE COMMITTEE.
THE MEMO ITEM ITSELF ON PAGE 5 REALLY LAYS OUT THE REASONING FOR ADJUSTING THE DATES, BUT I'M GOING TO ASK JACK TO SUMMARIZE IT FOR US A LITTLE BIT.
MY UNDERSTANDING IS YOU WANT TO GET IN FRONT OF US EARLIER TO AVOID THE BUDGET AMENDMENT DRAMA.
>> THAT IS CORRECT. THANK YOU, COUNCILMEMBER WEST.
AS YOU INTRODUCED THE ITEM, IT WAS AT FULL COUNCIL, GOT SENT TO COMMITTEE.
THANK YOU ALL FOR TAKING THE TIME TO LOOK AT THIS.
I'M ACTUALLY GOING TO LET JANETTE WALK THROUGH THE CHANGES AND THEN WE'LL ANSWER YOUR QUESTIONS.
>> JANETTE LOVES THE AMENDMENT PROCESS THOUGH.
>> ABSOLUTELY. GOOD AFTERNOON, JANETTE WEEDON, BUDGET AND MANAGEMENT SERVICES.
JUST A QUICK SUMMARY, I'M GOING TO JUMP TO PAGE 6 OF THE MEMO.
WE ARE RECOMMENDING A REIMAGINING OF OUR BUDGET AMENDMENT PROCESS.
YOU'LL NOTICE THAT WE'VE HIGHLIGHTED ON THE TIMELINE CALENDAR DATES THAT WE WOULD LIKE TO INTRODUCE.
WE ARE RECOMMENDING A STRATEGIC PLANNING OR A GOAL SETTING SESSION INTO THE CALENDAR.
THIS APPROACH WILL ALLOW US TO ESTABLISH A SHARED VISION, PRIORITIES, CAPTURE WHAT YOU WOULD LIKE TO SEE AS PART OF THE CITY MANAGER'S RECOMMENDED BUDGET.
IF YOU LOOK AT THE CALENDAR, WE ARE RECOMMENDING A NEW DATE ON APRIL 1ST, WHICH WOULD BE A BUDGET WORKSHOP.
ON APRIL 1ST, MAY 6TH, AND JUNE 17TH, WE WOULD HAVE AN OPPORTUNITY TO CAPTURE YOUR GOALS, GET YOUR FEEDBACK OF WHAT YOU WOULD LIKE TO SEE IN THE BUDGET.
WOULD PROVIDE THAT STANDARD FINANCIAL STATUS UPDATE THAT WE HISTORICALLY PROVIDE, GIVE YOU AN UPDATE ON EXPENSE DRIVERS, PROVIDE FEEDBACK RELATED TO OUR BUDGET ENGAGEMENT ACTIVITIES, THE SPRING TOWN HALL LISTENING SESSIONS, THE COMMUNITY SURVEY.
YOU WOULD PROVIDE FEEDBACK TO US DURING THOSE SESSIONS.
THEN THE CITY MANAGER WOULD INCORPORATE YOUR FEEDBACK AND PRESENT THE RECOMMENDED BUDGET TO YOU ON AUGUST 11TH.
WE ARE ALSO INTRODUCING WORK SESSIONS DURING THE MONTH OF AUGUST.
WE WOULD LIKE TO KEEP THAT NEW DATE ON THE 26TH AS A BUDGET WORKSHOP, BUT WE WOULD HAVE TWO BUDGET WORKSHOPS IN AUGUST.
THIS WOULD BE AN OPPORTUNITY FOR YOU TO DEEP DIVE INTO THE CITY MANAGER'S RECOMMENDED BUDGET.
WE FORESEE INTRODUCING THE BUDGET BY PILLAR.
WE WOULD TALK ABOUT THE DEPARTMENTS, WHAT'S BEEN ADDED, THINGS THAT HAVE BEEN REIMAGINED.
YOU WOULD PROVIDE FEEDBACK DURING THOSE WORKSHOPS, GRADE THE CITY MANAGER'S PAPER.
SHE WOULD RECEIVE YOUR FEEDBACK, THINGS THAT RECEIVE A MAJORITY SUPPORT.
THE CITY MANAGER WOULD GO BACK, REFINE THE BUDGET, AND THEN COME BACK ON SEPTEMBER 2ND WITH A REFINED BUDGET RECOMMENDATION.
THEN, OF COURSE, FINAL BUDGET ADOPTION ON SEPTEMBER 16TH.
THAT'S WHAT WE'RE PROPOSING AS A REIMAGINING.
>> JUST A CLARIFYING QUESTION.
YOU'RE ESSENTIALLY ADDING ANOTHER DATE IN APRIL OF 26TH, AND THEN ANOTHER DATE IN AUGUST.
ARE THESE WORKSHOPS, GOING TO BE BASICALLY JUST US WORKING UP HERE? DO YOU ENVISION US IN SOME, I GET PTSD FROM THIS, BUT RETREAT SCENARIO, OR IS IT ALL GOING TO TAKE PLACE UP HERE ALMOST LIKE THE COUNCIL OF THE WHOLE SYSTEM?
[01:30:02]
>> THE WORK, YES, TO ANSWER YOUR FIRST QUESTION, YES, WE ARE INTRODUCING A NEW DATE ON APRIL 1ST, AND IT'S REALLY WILL BE BASED ON YOUR FEEDBACK.
IF THE RETREAT GIVES YOU PTSD, WE'RE HAPPY TO CONDUCT THAT SESSION HERE AT THE HORSESHOE LIKE A BRIEFING SESSION.
BUT I FORESEE IT AS AN OPPORTUNITY WHERE WE'RE PROVIDING YOU A FINANCIAL STATUS UPDATE, PROVIDING FEEDBACK RELATED TO OUR ENGAGEMENT EFFORTS, BUT THEN ALSO YOU HAVE AN OPPORTUNITY TO PROVIDE YOUR GOALS, TELL US WHAT YOU WOULD LIKE TO SEE IN THE BUDGET.
OF COURSE, WE'LL PRESENT THE SECOND YEAR OF THE BIANNUAL BUDGET BECAUSE AS YOU KNOW, WE HAVE A TWO YEAR BALANCED BUDGET, AND SO WE'LL PRESENT FISCAL YEAR '26 TO YOU.
HIGHLIGHT THE PRIORITIES IN FISCAL YEAR '27, AND THEN YOU CAN PROVIDE FEEDBACK ON WHAT'S INCLUDED IN THE PLAN BUDGET.
>> IF I COULD ADD TO WHAT JANETTE'S TALKING ABOUT THERE.
ON APRIL 1ST, MAY 6TH AND JUNE 17TH, WHETHER THEY'RE HERE AT THE HORSESHOE OR AT AN OFFSITE, WHAT WE REALLY WANT TO BE ABLE TO GET IS MORE OF YOUR AGREED UPON GOALS AND BE MORE FOCUSED ON ACTUAL POLICY, WHAT YOU'RE WANTING TO SEE IN THE BUDGET, WHAT OUTCOMES THAT YOU WANT, AND THEN HOLD US ACCOUNTABLE FOR BRINGING THAT BACK TO YOU ON AUGUST THE 11TH.
I THINK THE LAST FEW YEARS WE HAVE EITHER MET WITH YOU EACH ONE-ON-ONE OR GOTTEN ONE-ON-ONE TYPE OF FEEDBACK.
WE REALLY NEED CONSENSUS TYPE OF FEEDBACK ON WHAT YOU WANT TO SEE IN THE BUDGET.
WE HOPE THROUGH THESE THREE WORKSHOPS, WE'RE REALLY DOING A DEEPER DIVE AND TRYING TO UNDERSTAND THE AGREED UPON GOALS OF THE ELECTED BODY, BECAUSE THAT'S WHAT WE WANT TO BRING BACK TO YOU.
IT IS SOMETHING THAT MEETS THAT AND ALIGNS WITH WHAT YOUR COLLECTED PRIORITIES ARE.
>> THANK YOU. ARE YOU LOOKING FOR FEEDBACK ON THAT FORMAT FROM US TODAY?
>> YES. BECAUSE THE RECOMMENDATION FOR NEXT WEEK, IF THE COMMITTEE SUPPORTS THE RECOMMENDATION, THEN THERE WOULD BE A FLOOR AMENDMENT TO ADD THE ADDITIONAL DATES TO THE CALENDAR.
>> GENERALLY, I SUPPORT THE CONCEPT, AND THEN I'LL GO LEFT AND THEN RIGHT.
I HAVE NOT FOUND A SINGLE RETREAT TO HAVE BEEN WORTHWHILE YET THAT WE'VE DONE UP HERE.
NOT ALL MY COLLEAGUES WOULD AGREE WITH THAT, ESPECIALLY SOME WHO ARE NO LONGER ON THIS COUNCIL, BUT I DO THINK THAT THERE IS A BENEFIT TO FOCUSING ON A BUSINESS TYPE RETREAT WHERE WE LIKE THE DOT EXERCISE WAS USEFUL ON MY FIRST TERM.
BUT THE KUMBAYA FACILITATOR TRYING TO GET US ALL TO SIT AROUND A CAMPFIRE AND HOLD HANDS, IT'S JUST NOT EFFECTIVE BASED ON THE WAY WE'RE ORGANIZED HERE IN MY OPINION.
BUT MY FRUSTRATION WITH THOSE RETREATS HAS ALWAYS BEEN THAT WE LEAVE REALLY MORE UPSET THAN KNOW WHAT I'M SAYING? MORE UPSET THAN LIKE PRODUCTIVE.
I'M LIKE, WHEN ARE WE GOING TO ACTUALLY SIT DOWN AND GET TO BUSINESS AND GIVE THE CITY MANAGER SOME RECOMMENDATIONS? AS LONG AS IT'S A STRONG FACILITATOR WHO IS GOAL ORIENTED, AND THE GOALS ARE LIKE, WHAT'S GOING TO END UP IN THE BUDGET, NOT HOW ARE YOU GOING TO TALK TO YOUR COLLEAGUE DIFFERENTLY, I'M DOWN, AND I'LL FULLY PARTICIPATE AND SHOW UP WITH BELLS ON.
>> FOR THE PROCESS TO WORK, THE WAY WE'RE ENVISIONING IT, WE NEED YOUR INPUT ON THE GOALS, NOT HOLDING HANDS, BUT WHAT IS IT THAT ALL WANT TO SEE IN THE BUDGET? THAT'S WHAT WE WANT FROM YOU, AND THEN WE WANT TO DELIVER A BUDGET THAT DOES THAT.
>> THANK YOU. WHO HAVEN'T BEEN TO THOSE RETREATS.
YOU DON'T KNOW WHAT YOU'RE MISSING, TRUSTEE.
I'LL PASS IT ALONE TO MY COLLEAGUE.
YOU'RE LOOKING FOR AMENDMENTS THAT REFLECT THE COLLECTIVE BODY.
I DON'T REMEMBER, AND I WOULD HAVE TO GO BACK AND STUDY THIS AND SEE IF MY ASSUMPTION IS CORRECT.
BUT THE AMENDMENTS DON'T TEND TO BE REFLECTIVE OF A COLLECTIVE THOUGHT.
THEY'RE VERY OFTEN SPECIFICALLY A CONCERN OF THAT PARTICULAR COUNCIL MEMBER IS THE WAY I SEE IT.
I DO THINK IT'S WISE THAT WE REALLY START LOOKING INTO THIS BECAUSE THE PRESSURES ON THE BUDGET, AS YOU MENTIONED TODAY, JAKE, AND WHAT I CALL THE PRESSURE POINTS ON THE BUDGET.
THOSE ARE NOT GOING AWAY, THEY'RE GOING TO GET BIGGER AND WE ARE GOING TO BE FACED WITH MORE AND MORE DIFFICULT DECISIONS THAT WOULD BE MADE BETTER.
THE DECISIONS WOULD BE MADE BETTER IF THEY WERE COLLECTIVE.
[01:35:01]
IF WE COULD ALL STAND TOGETHER AND SAY, WE'VE ALL TAKEN A HIT HERE AND WE UNDERSTAND WE'RE HAVING TO AMEND OR RE-IMAGINE THE WORD THAT I'M BEGINNING TO HATE.BUT IF WE WERE RE-IMAGINING THAT TOGETHER AND EVERYBODY THAT WAS COLLECTIVE.
I'M JUST NOT SURE THAT HAVING MORE BUDGET WORKSHOPS MAKES THAT PROCESS MORE COLLECTIVE, THAT THE AMENDMENTS BECOME MORE COLLECTIVE.
BUT I MEAN, I'M HAPPY TO GO TO MORE BUDGET WORKSHOPS, BUT I DON'T SEE THAT PROCESS DOING WHAT MAYBE YOU'RE HOPING.
>> IN ADDITION TO THE THREE OPPORTUNITIES PRIOR TO YOUR JULY RECESS, WHERE WE'RE REALLY WANTING TO UNDERSTAND THE COLLECTIVE GOALS.
AFTER THE BUDGET IS PRESENTED, AS JANETTE MENTIONED, WE WOULD HAVE TWO SESSIONS WHERE WE DIVE DEEPER INTO THE RECOMMENDATIONS.
NOT JUST ON AUGUST THE 11TH, WE'LL PRESENT THE BUDGET, BUT THEN ON AUGUST THE 19TH AND AUGUST THE 26TH, WE WOULD DIVE DEEPER INTO THOSE BUDGETS.
WHAT DID WE MISS? ALL TOLD US THINGS PRIOR TO JULY RECESS IN THE APRIL, MAY AND JUNE MEETINGS.
WHEN WE DELIVERED YOUR BUDGET TO YOU, WHAT DID WE MISS? WHAT DID WE NOT HEAR CORRECTLY? THEN WE INTEND TO GO BACK BASED JUST ON WHAT WE HEAR THROUGH THOSE CONVERSATIONS ON AUGUST THE 19TH AND 26, WE WERE GOING TO REFINE WHAT WE PRESENTED TO YOU ON THE 11TH.
WE WILL TRY TO COME BACK TO YOU WITH SOMETHING THAT CAPTURES THEN THAT REFINEMENT.
NOT REQUIRING YOU TO SUBMIT INDIVIDUAL AMENDMENTS BECAUSE WE ARE GOING TO LISTEN, AND WE'RE GOING TO MAKE THE REFINEMENTS FOR YOU.
WE'RE NOT GOING TO ASK YOU IN THIS PARTICULAR SITUATION TO GIVE ME A SOURCES AND USES, BUT JUST TELL US DID WE DO IT RIGHT? IF WE DIDN'T, GIVE US A SECOND CHANCE TO MAKE THOSE REFINEMENTS, AND THEN LET'S MOVE FORWARD.
WE'RE POTENTIALLY IT COULD ELIMINATE THE NEED FOR THE INDIVIDUAL TYPES OF AMENDMENTS, WHEN WE'RE LISTENING TO THE GROUP AND WE'RE TRYING TO RESPOND TO THE GROUP AS A WHOLE.
IT'S GOING TO BE HARD BECAUSE WE'RE VERY USED TO FOCUSED ON VERY SPECIFIC TYPES OF PROJECTS.
BUT I'M JUST GOING TO USE AS AN EXAMPLE, A REQUEST TO ADD MORE FUNDING FOR SOLAR PANELS.
TELL US WHAT YOU WANT ABOUT CCAP, AND LET US DELIVER THAT.
LET'S DON'T MAYBE GET BOGGED DOWN IN HOW MANY SOLAR PANELS WE NEED.
TELL US WHAT YOU WANT TO SEE IN THE WAY OF CCAP IMPLEMENTATION, AND THEN LET US BRING YOU BACK RECOMMENDATIONS OR WHETHER IT'S WHAT DO YOU WANT TO SEE FROM US IN THE WAY OF INFRASTRUCTURE IMPROVEMENTS FOR STREETS.
TELL US THAT, AND LET US DO THE BEST WE CAN TO BRING THAT BACK TO YOU.
TELL US WHERE WE GOT IT RIGHT, TELL US WHERE WE GOT IT WRONG, AND GIVE KIM A SECOND CHANCE ON SEPTEMBER 2 TO BRING BACK THAT REFINEMENT.
JANETTE, DO YOU HAVE ANYTHING TO ADD TO THAT, IS THAT?
>> NO, SIR. THAT'S CAPTURES OUR DISC.
>> FOR EXAMPLE, THE SOLAR PANELS, I BET THAT CAME.
IT MIGHT HAVE BEEN AN IDEA IN A COUNCIL MEMBER'S HEAD, BUT POTENTIALLY THAT CAME TO A HEAD AT ONE OF THE BUDGET TOWN HALLS.
AT LEAST THE TWO I HAD, THAT WAS A CONSISTENT THEME.
PART OF THE ISSUE THERE, I THINK, IS THAT THE CONSTITUENT ISN'T AWARE OF HOW MANY BUILDINGS WE HAVE WITH SOLAR PANELS, AND WHAT WE'RE DOING TO MAKE SOLAR PANELS MORE AVAILABLE TO OUR CONSTITUENTS.
BEING CHAIR OF PTE, I CAN PROVIDE SOME OF THAT INFORMATION.
WE SHOULD THINK THIS THROUGH A LITTLE BIT.
WHEN YOU GET SOMETHING SO SPECIFIC LIKE THAT, MAYBE UNDERSTANDING THE SOURCE OF IT AND THEN UNDERSTANDING THAT POTENTIALLY THAT'S ALREADY BEING ADDRESSED OR ANSWERED IN THE BUDGET.
WE'RE JUST NOT AWARE BECAUSE WE'RE NOT ON THAT COMMITTEE AND WE'RE HEARING SOMETHING FROM OUR CONSTITUENTS AND IT'S RAISED A CONCERN IN OUR OWN MINDS.
WE JUST KNOW THAT WE NEED TO HAVE MORE FUNDING FOR THAT.
THAT'S A SIMPLE EXAMPLE, I THINK.
BUT I DO LIKE THE FACT THAT WE WOULD GET SOME ASSISTANCE IN CREATING THAT COLLECTIVE.
BUT I WISH YOU ALL THE LUCK IN FINDING THE METHOD THAT ALLOWS THAT COLLECTIVE THINKING TO HAPPEN.
IT WOULD BE BETTER FOR THE BUDGET IN THE LONG RUN AND BETTER FOR THE PROCESS TO BE ABLE TO DO THAT. I APPLAUD YOU IN THAT.
>> WE'VE HEARD A LOT OF FRUSTRATION, NOT JUST THIS PAST SUMMER, BUT I'VE BEEN HEARING IT FOR A LONG TIME.
[01:40:01]
IT FRUSTRATES THE COUNCIL MEMBERS.IT'S HARD ON STAFF. KIM SAID FIGURE OUT A DIFFERENT WAY.
SHE'S WANTING TO TRY SOMETHING DIFFERENT TO COME TO A CONSENSUS AND FOR US TO DELIVER.
>> I'M NOT GOING TO GO INTO THE BUDGET ITEM.
I HAVE A QUESTION ON THE CALENDAR ITSELF.
WHEN WE'RE FORECASTING WHEN COMMITTEE MEETINGS ARE GOING TO TAKE PLACE. WE'RE ON THE CALENDAR.
WE'VE RECENTLY HERE HAVE GONE OVER TIME ON OUR COMMITTEE MEETINGS, OR THERE'S A SPECIAL CALLED MEETING THAT HAS PUSHED A PROGRAM SCHEDULED COMMITTEE MEETING TO POTENTIALLY NOT START OR START LATE, WHICH COULD RESULT IN THAT MEETING NOT HAPPENING OR THAT MEETING BEING PUT OFF FOR A SPECIAL CALLED MEETING.
IF THERE IS A MEETING THAT'S ON THE CALENDAR, BUT THAT MEETING IS FORCED TO BE MOVED.
IT REQUIRE STILL BE A SPECIAL CALLED MEETING IF IT'S AT A DIFFERENT DATE OR WOULD IT BE A TAKE THE PLACE OF AN EXISTING MEETING?
>> MY UNDERSTANDING ON THAT IS THAT IF A MEETING WHAT'S ON THE CALENDAR, IF IT CHANGES, THEN IT IS A SPECIAL CALLED MEETING.
IF YOUR ECONOMIC DEVELOPMENT COMMITTEE MEETING WAS PLANNED TO BE ON NOVEMBER THE 3RD AT 1:00 P.M. YOU MOVED IT TO A DIFFERENT DATE TO ACCOMMODATE THE SPECIAL CALLED, YOU'RE BASICALLY CANCELING ONE AND SPECIAL CALLED THE OTHER.
I THINK IS THE SITUATION, BUT I WILL, JAKE, GET UP HERE.
[LAUGHTER] YES, JAKE'S TELL ME I ANSWERED THAT CORRECTLY.
>> JAKE ANDERSON, INTERIM DIRECTOR OF GOVERNMENT AFFAIRS, AND THAT IS CORRECT.
>> THANK YOU. I'M TRYING TO MAKE SURE I HAVE THIS AN UNDERSTANDING, AND I'M GOING TO JUST PUT IT AS PLAINLY AS I CAN, JUST SO I CAN MAKE SURE I'M PROCESSING WHAT'S HAPPENING HERE.
YOU WANT US TO GET ALL OF OUR IDEAS AND AMENDMENTS OUT EARLY SO THAT WE CAN ARGUE OVER THEM SO THAT WHEN IT'S TIME TO ACTUALLY PUT A BUDGET TOGETHER THAT YOU COME BACK AND PRESENT TO US, IT'S BASED ON ALL OF THE ARGUMENTS THAT HAVE ALREADY TAKEN PLACE SO THAT WE'RE NOT UP AGAINST A DEADLINE TRYING TO GET THE BUDGET PASSED, PLUS MANAGED THROUGH ALL OF OUR IDEAS AT THE SAME TIME WHILE PREPARING A BUDGET.
IS THAT KIND OF THE SIMPLEST WAY FOR MY BRAIN TO PROCESS WHAT'S BEING ASKED OF US AND WHY THIS CHANGES.
>> THANK YOU FOR THAT FEEDBACK.
I WOULD CALL THAT GOAL SETTING SESSION AS OPPOSED TO AN ARGUMENT.
BUT THE GOAL IS TO CAPTURE YOUR FEEDBACK IN TERMS OF WHAT YOU WOULD LIKE TO SEE IN THE CITY MANAGER'S RECOMMENDED BUDGET SO THAT WE PREPARE A BUDGET THAT MEETS CONSENSUS AROUND THE HORSESHOE. THAT IN THE GOAL.
>> I'LL USE MY AMENDMENTS AS AN EXAMPLE, BECAUSE I RECOGNIZE SOME OF THEM ARE PRETTY WILD IN ITS REQUESTS AND IN ITS NATURE, SOME OF IT GIVES US THE ABILITY TO WORK THROUGH THAT SO YOU CAN TALK SOME OF US OFF THE ROOF IN TERMS OF I'LL USE ME AS AN EXAMPLE.
I FEEL LIKE YOU'RE TRYING TO DETER ME FROM SOMETHING THAT I WANT TO ACCOMPLISH, WE CAN GET THROUGH ALL OF THAT THROUGH WHATEVER PROPOSED BUDGET AMENDMENTS I HAVE IN THAT APRIL 1, AND THOSE FIRST COUPLE OF DATES.
THEN AFTER THAT, WHETHER AND WE'RE IN THAT WORKSHOP SESSION, IT'S NOT THE KUMBAYA.
WE'RE NOW GOING THROUGH AND TALKING THROUGH EITHER THESE INDIVIDUAL AMENDMENTS OR THESE BIGGER LARGER BUDGET QUESTIONS SO THAT AT THE END OF THOSE TWO MEETINGS IN THAT APRIL AND MAY, THOSE SPRING MEETINGS, YOU ALL NOW HAVE ENOUGH TO COME BACK AND SAY, WE BELIEVE WE'VE CAPTURED ALL OF YOUR AMENDMENTS, ALL OF YOUR THOUGHTS, ALL OF YOUR IDEAS.
HERE'S THE BUDGET. HOPEFULLY, THERE'S NOT A LOT OF BACK AND FORTH SO THAT WE CAN MOVE FORWARD.
THERE MAY BE ONE OR TWO A COUPLE.
I'M JUST TRYING TO JUST THINK ABOUT THE PROCESS.
>> ALSO, DURING THE APRIL, MAY AND JUNE TIME FRAME, WE WOULD BE GIVING YOU FEEDBACK AS WELL, BECAUSE IF YOU'RE TELLING US REDUCE THE TAX RATE BY $0.10 AND INCREASE POLICE PAY BY $100,000, I CAN'T DO THAT.
I REALIZED THAT. I JUST THREW OUT SOMETHING CRAZY.
BUT YOU WILL GET FEEDBACK FROM US ON WHAT WE THINK IS FEASIBLE AND NOT.
[01:45:05]
HELP YOU UNDERSTAND WHAT THE CONSEQUENCES OF SOME THINGS MAY BE AS BEST WE CAN AS EARLY AS WE CAN.>> I CAN SUPPORT THIS. THANK YOU.
>> FIRST OF ALL, I'LL SAY THAT SOMETIMES RETREATS HAVE TO BE RELATIONAL SO THAT YOU CAN UNDERSTAND EACH OTHER'S GOALS AND PRIORITIES AND HOW YOU MIGHT NEED TO EDUCATE OTHERS TO HELP GET TO A BETTER BUDGETING PROCESS.
IT'S NOT ALL JUST ABOUT OUR DISTRICTS BUT HOW WE UNDERSTAND THE IMPACT ON THE CITY.
MY QUESTION IS NOT NECESSARILY SOMETHING THAT GOES ON HERE, BUT IT'S MORE ABOUT WHEN WE GET THE BUDGET, WOULD THAT BE AUGUST 7? WOULD IT STILL BE THE FRIDAY BEFORE THE TUESDAY WORKSHOP? WE DON'T TYPICALLY PUT THAT ON THE CALENDAR.
BUT I LOOK FORWARD TO A PROCESS WHERE WE SET OUR GOALS UPFRONT VERSUS THE, TO GAME ADJUSTMENTS.
IT'S JUST NOT A SMART WAY TO DO IT.
I'M ALL FOR IF THIS IS THE APPROACH THAT YOU ALL WANT TO TAKE TO GET MORE THINKING UP FRONT AND COMMITMENT UP FRONT, ABOUT WHAT WE WANT TO DO ABOUT OUR SALES TAX, LOWERING IT, MAINTAINING IT? I'M FOR THAT. THANK YOU.
>> THANK YOU. WE'LL WRAP THIS ITEM UP.
I'LL JUST ONE THING WHEN WE GET TO TALKING ABOUT THIS AGAIN IN THE SPRING, AND THIS IS PROBABLY SOMETHING FOR THE ADMIN AFFAIRS COMMITTEE BUT I THINK THE AMENDMENTS ARE GOING TO COME NO MATTER WHAT WE DO, JUST BECAUSE I'VE SEEN IT EVERY YEAR.
REMEMBER COUNCIL MEMBER KLEINMAN, HE WOULD HAVE DONE 100 AMENDMENTS NO MATTER HOW MUCH WORK WE DID BEFOREHAND, BECAUSE THAT'S JUST WHAT HE DID, AND I THINK WE'RE GOING TO STILL SEE IT.
I WOULD LIKE TO SEE US HAVE BEFORE WE EVEN TALK ABOUT IT AND SPEND AN HOUR ON EACH ITEM, YOU HAVE TWO OR THREE PEOPLE SUPPORTING YOUR AMENDMENT AND SOME FORMAT FOR THAT.
I THINK WE COULD AVOID SOME OF THE SHENANIGANS THAT HAPPEN.
IN SPRING, I'D LIKE TO TALK ABOUT THAT AND WHATEVER COMMITTEE NEEDS TO GO TO. I WOULD SUPPORT THAT.
COLLEAGUES, ITEMS E, F OR G, WE WILL TAKE THEM TOGETHER, ANYBODY. I'M LOOKING AROUND.
THIS MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.