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[00:00:03]

STARTED

[CALL TO ORDER]

GOOD MORNING, EVERYONE.

MY NAME IS ALISON ALTER AND I'M CHAIR OF THE AUDIT AND FINANCE COMMITTEE.

I'M JOINED ON THE DAYAS HERE AT CITY HALL THIS MORNING BY COUNCIL MEMBER POOL AND COUNCIL MEMBER ONE TEST AND ON THE VIRTUAL DIOCESE BY COUNCIL MEMBERS, KELLY AND TOVO, UM, IT IS 9 36 ON SEPTEMBER 22ND.

AND I WILL CALL THIS MEETING TO ORDER.

UM, JUST WANT TO MAKE SURE YOU CAN HEAR ME OKAY.

WITH THE MASK WITH THE MICROPHONE.

IS THAT OKAY? OKAY, GREAT.

UM, THE MAYOR WILL BE OFF THE DIOCESE FOR THIS MORNING'S MEETING.

UM, AND COUNCIL MEMBER IS ALWAYS WELCOME, BUT IS NOT A COMMITTEE MEMBER FOR MINUTES PURPOSES.

UM, ALL RIGHT, SO WE ARE GOING TO START WITH ITEM ONE.

WE DO NOT HAVE ANY SPEAKERS THIS MORNING, UM, AND WE ARE GOING TO TAKE UP EACH ITEM IN ORDER, EXCEPT FOR THE EDD ITEM BRIEFING, WHICH WILL BE TAKEN UP LAST TO GIVE US AS MUCH TIME AS POSSIBLE.

UM, WE HAVE, UH, SCHEDULED THIS MEETING UNTIL 12.

I KNOW ONE OR MORE OF MY COLLEAGUES NEEDS TO LEAVE BEFORE THEN.

UM, BUT WE WILL WORK AS QUICKLY AS WE CAN AND TODAY'S BRIEFING IS IN SOME WAYS TO GET INFORMATION OUT THERE IN ANOTHER FORUM.

UM, SO I THINK THAT WILL BE OKAY.

UM, SO I'LL

[1. Approve the minutes of the Audit and Finance Committee meeting of August 18, 2021.]

ENTERTAIN A MOTION FOR APPROVING THE MINUTES, MOVED BY COUNCIL MEMBER POOL, SECONDED BY COUNCIL MEMBER KELLY, ALL THOSE IN FAVOR UNANIMOUS ON THE VIRTUAL DYESS WITH THE MAYOR OFF OR W2 VIRTUAL AND THE PRESENT.

I'S NOT SURE WHAT WE'RE SUPPOSED TO CALL THAT THESE DAYS.

OKAY.

SO OUR SECOND ITEM

[2. Discussion and possible action regarding the City Technology Purchases Audit.]

IS, UM, DISCUSSION AND POSSIBLE ACTION REGARDING THE CITY TECHNOLOGY PURCHASES AUDIT.

UM, THE AUDITOR'S OFFICE HAS ASKED TO POSTPONE THIS ITEM TO ALLOW ADDITIONAL TIME FOR MANAGEMENT TO RESPOND TO THE AUDIT.

UM, TO THAT END, DO WE HAVE A MOTION TO POSTPONE THE CITY TECHNOLOGY PURCHASES AUDIT TO THE NEXT AFC MEETING COUNCIL MEMBER TOPO MAKES THE MOTION SECONDED BY COUNCIL MEMBER KELLY.

UM, SEEING NO OBJECTIONS ON THE DYESS, WE WILL POSTPONE ITEM TWO.

UM, OUR THIRD

[3. Discussion and possible action on the Park and Recreation Department Follow-Up Audit.]

ITEM IS DISCUSSION AND POSSIBLE ACTION ON THE PARK AND REC PARKS AND RECREATION DEPARTMENT FOLLOW UP AUDIT.

UM, SO THIS IS, UH, SIRI.

THIS IS PART OF A SERIES OF AUDITS THAT THE AUDITOR DOES TO TAKE A LOOK BACK AT PREVIOUS AUDITS AND MAKE SURE THAT RECOMMENDATIONS HAVE BEEN MADE.

UM, SO I WOULD LIKE TO INVITE THE AUDITOR'S OFFICE TO PRESENT KATIE.

YOU'RE TRYING TO SPEAK, I THINK, BUT WE'RE NOT HEARING YOU.

YEAH, I WAS JUST WONDERING IF COREY IS THERE.

I THOUGHT SHE WAS GOING TO BE THERE TO INTRODUCE THE ITEM.

IF NOT, WE CAN JUST GET STARTED WITH THE SHE, WHAT? UM, I THINK SHE STEPPED OUT TO PRINT SOMETHING, BUT I THINK YOU CAN UP THERE SHE IS.

LET'S SEE IF SHE WANTS SHE'S COMING BACK.

JUST GET STARTED.

ANNA MORRIS IS ACTUALLY GOING TO BE MAKING A CLOSE SECOND.

UM, MS. STOKES, DID YOU WANT TO START OR CAN KATIE GO AHEAD? OKAY.

SHE WANTS TO INTRODUCE IT REAL QUICK.

SO WE'LL BE OFF THE DIES FIRST.

SORRY ABOUT THAT.

UM, SO THIS ITEM IS OUR PRIORITY, STRATEGIC PLANNING.

FOLLOW-UP THIS TOOK RECOMMENDATIONS FROM TWO DIFFERENT AUDITS SPECIFICALLY RELATED TO FOLLOWUP OR SPECIFICALLY RELATED TO STRATEGIC PLANNING.

UM, AND WE'LL BE PRESENTING THE RESULTS TODAY.

KATIE HOUSTON IS THE MANAGER.

UM, ANNA MORRIS IS THE LEAD AUDITOR YOU IS GOING TO PRESENT FOR US, I THINK.

OKAY.

HI, GOOD MORNING.

MY NAME IS ANNA MORRIS AND I WAS THE AUDITOR IN CHARGE FOR THE PROJECT.

THE OBJECTIVE OF THIS PROJECT WAS TO FOLLOW UP ON THE PARKS AND RECREATION DEPARTMENTS ACTIONS TO IMPLEMENT RECOMMENDATIONS FROM THE PART RESOURCE ALLOCATION AND CASH HANDLING AUDITS, BOTH AUDITS EVALUATED, HOW TARDE MANAGES ITS RESOURCES AND THE MANY PROGRAMS AND FUNCTIONS THE DEPARTMENT OVERSEES.

NEXT SLIDE PLEASE.

OKAY.

UH, PART RESOURCE ALLOCATION AUDIT WAS CONDUCTED IN 2016 TO DETERMINE HOW RESOURCES WERE ALLOCATED FOR PART PROGRAMS AND MAINTENANCE.

AND IF THIS PROCESS RESULTED IN EQUITY FROM A CITY DISTRICT PERSPECTIVE, THE AUDIT RESULTED IN THREE FINDINGS AND FOUR RECOMMENDATIONS RELATED TO MANAGEMENT OF PROGRAM PLANNING, SETTING AND COLLECTING APPROPRIATE FEES, INITIATING POLICY DISCUSSIONS RELATED TO FUNDING PRIORITIES AND TIMELY RESPONSE TO MAINTENANCE REQUESTS.

THE PART CASH HANDLING AUDIT WAS CONDUCTED IN 2017 TO DETERMINE

[00:05:01]

IF PART ACCOUNTED FOR ALL THE MONEY IT RECEIVED.

THE AUDIT RESULTED IN TWO FINDINGS AND FOUR RECOMMENDATIONS.

THE RECOMMENDATIONS INCLUDED IMPLEMENTING NEW CASH, HANDLING PROCEDURES AND TRAINING, AND TO REDUCE THE ACCEPTANCE OF PAPER MONEY AT PARDES SITES.

NEXT SLIDE.

OKAY.

FOR THE PART OF RESOURCE ALLOCATION AUDIT, WE VERIFIED THE DEPARTMENT HAS IMPLEMENTED TWO OF OUR RECOMMENDATIONS AND TWO ARE UNDERWAY.

WE VERIFIED THE DEPARTMENT HAS IMPLEMENTED ALL FOUR RECOMMENDATIONS ISSUED IN THE PART CASH HANDLING AUDIT.

OVERALL.

WE FOUND THAT ALTHOUGH PART HAS MADE SIGNIFICANT IMPROVEMENTS TO MANAGING ITS RESOURCES, BUDGET CONSTRAINTS MAY CONTINUE TO LIMIT THE DEPARTMENT'S ABILITY TO EFFECTIVELY OFFER ITS CURRENT WIDE RANGE OF SERVICES.

X SLIDE, TWO RECOMMENDATIONS FROM THE RESOURCE ALLOCATION HAVE BEEN IMPLEMENTED.

PART HAS CONDUCTED RESEARCH AND PLANNING OVER THE YEARS TO PRESENT OPTIONS TO CITY COUNCIL FOR MAKING HIGH COST SERVICES SUCH AS AQUATICS GOLF COURSES AND CEMETERIES MORE SUSTAINABLE.

HOWEVER, IT WILL REQUIRE SIGNIFICANT FINANCIAL INVESTMENT TO REPAIR AND MAINTAIN FACILITIES, PARTICULARLY FOR THE CITY'S POOLS.

CITY COUNCIL VOTED TO ADOPT PART'S AQUATIC MASTER PLAN IN 2018 THOUGH.

ADEQUATE FUNDING FOR THE FULL PLAN HAS NOT YET BEEN ALLOCATED IN 2018.

A PORTION OF THE FUNDING WAS APPROVED IN $40 MILLION OF BOND MONEY FOR IMPROVEMENTS TO GIVENS, NORTHWEST AND MONTOPOLIS POOLS.

AND FOR THE DEVELOPMENT OF THE NEW COLONY PARK AQUATIC FACILITY.

WE ALSO VERIFIED THAT PARK NOW APPROPRIATELY REGISTERS ALL PROGRAM PARTICIPANTS FOR PAID SERVICES, SUCH AS SWIMMING LESSONS AND AFTERSCHOOL PROGRAMS. WE VERIFY THAT NEARLY ALL PROGRAM PARTICIPANTS HAVE PAID FOR THE SERVICES THEY RECEIVED AND THAT PAYMENT WAS MADE TIMELY.

NEXT SLIDE, WE HAVE DETERMINED THE REMAINING TWO RECOMMENDATIONS FOR THIS AUDIT ARE UNDERWAY.

SOON AFTER WE CONDUCTED THIS AUDIT PART, WORKED WITH A CONSULTANT TO CREATE AND IMPLEMENT NEW SUBSIDY PRICING AND COST RECOVERY MODELS.

PART IS IN THE PROCESS OF WORKING WITH THE COMMUNICATIONS AND TECHNOLOGY MANAGEMENT DEPARTMENT AND THE OFFICE OF PERFORMANCE MANAGEMENT TO IMPLEMENT A COMPREHENSIVE PROGRAM MANAGEMENT SYSTEM THAT WILL HELP THE DEPARTMENT WITH DECISION-MAKING.

THE DEPARTMENT TOLD US THIS RECOMMENDATION HAS NOT YET BEEN FULLY IMPLEMENTED BECAUSE STAFF WERE UNABLE TO FIND AN AFFORDABLE READY-MADE SOFTWARE OPTION.

SO THEY NEEDED TO CREATE ONE PART IS ALSO STILL WORKING ON IMPROVING THEIR RESPONSE TO FACILITY SERVICE REQUESTS.

WE DID FIND THE DEPARTMENT HAS REVISED WORK ORDER PROCEDURES COMMUNICATED THE CHANGES TO STAFF AND HAS STARTED TO REDUCE WORK ORDER BACKLOG.

THE DEPARTMENT IS WORKING WITH CTM ON THIS PROJECT AS WELL.

SINCE 2018, THEY HAVE BEEN WORKING TO REPLACE THE CURRENT WORK ORDER MANAGEMENT SYSTEM WITH A NEW ENTERPRISE LEVEL SOLUTION.

HOWEVER, THEY ENCOUNTERED SOME TECHNICAL CHALLENGES THAT EXTENDED THE IMPLEMENTATION TIMELINE.

THESE CHALLENGES WERE MOSTLY RESOLVED AS OF SPRING 2021.

THE DEPARTMENT SAYS SOME WORK GROUPS WILL BEGIN USING THE NEW SYSTEM AT THE START OF FISCAL YEAR 22.

NEXT SLIDE WE VERIFY PART HAS IMPLEMENTED ALL FOUR RECOMMENDATIONS MADE IN THE CASH HANDLING AUDIT TRAINING FOR CASH HANDLERS HAS IMPROVED, AND THE DEPARTMENT HAS ELIMINATED THE NEED TO OVERREACH TRANSACTIONS, WHICH HAS REDUCED THE RISK OF THEFT.

THE DEPARTMENT ALSO CONDUCTS ROUTINE CASH AUDITS AT PARTS SITES AND MANY SITES WITH HIGH CASH INTAKE, SUCH AS BARCLAYS SPRINGS POOL NOW HAVE CASHLESS PAYMENT OPTIONS, INCLUDING PAY STATIONS AND A MOBILE APP CALLED ATX WIMPS.

NEXT SLIDE IS CONCLUDES THE PRESENTATION.

WE ARE HAPPY TO ANSWER ANY QUESTIONS FROM THE COMMITTEE.

THANK YOU.

UM, THIS IS A FOLLOW-UP AUDIT.

I DON'T KNOW IF THERE WAS ANYTHING PARTICULARLY CONTROVERSIAL IN THIS, BUT I DON'T KNOW IF PART WANTED TO, TO RESPOND IN ANY WAY, UH, DIRECTOR MCNEENEY GOOD MORNING.

GOOD MORNING.

KIMBERLY, MERELY SERVING AS THE DIRECTOR FOR APPROXIMATE RECREATION, WE CAN PRUNE WITH THE FINDINGS OF THE AUDIT AUDITORS OFFICE.

AND, UM, TO YOUR POINT, THERE WAS NOTHING PARTICULARLY CONTROVERSIAL.

IT'S A LITTLE DISAPPOINTING TO THE DEPARTMENT THAT, UM, THERE'S NO SUCH SYSTEMS THAT WE NEED THAT ARE ACTUALLY AVAILABLE ON THE MARKET.

YOU KNOW, COMMERCIALLY AVAILABLE THAT WE'RE HAVING TO BUILD OUR OWN SYSTEMS, WHICH HAS DELAYED OUR, OUR ABILITY TO COMPLY OR TO, UM, MAKE SURE THAT WE IMPLEMENTED THEIR RECOMMENDATIONS, BUT WE'RE WELL ON OUR WAY TO DOING SO.

AND PERHAPS, UM, PERHAPS THIS WILL BE AN OPPORTUNITY FOR US TO SHARE

[00:10:01]

WITH OTHER ENTITIES IN OUR OWN PROFESSION, SOME INNOVATIVE WAYS TO BE ABLE TO, UM, TAKE CARE OF THESE THINGS.

ONCE THOSE SYSTEMS ARE BUILT ON, I'M NOT SAYING I'M GOING TO GIVE AWAY PROPRIETARY INFORMATION, BUT ALL I'M SAYING IS, IS THAT THEY DON'T EXIST IN.

SO THIS IS AN INNOVATIVE WAY FOR THE CITY OF AUSTIN TO SHOW ITS TIME AND TALENTS AND MAKING SURE THAT WE'RE, UM, WE'RE MANAGING OUR RESOURCES AND OUR PROGRAMMING EFFICIENTLY.

SO I HAVE NOTHING ELSE TO ADD TO MUSLIM'S QUESTIONS.

THANK YOU, DIRECTOR, MIKE NEELY, MAYBE YOU GUYS CAN, UM, LICENSE IT TO OTHERS AND, AND, AND EARN SOME, EARN SOME ADDITIONAL FUNDING THAT WAY.

UM, THANK YOU, COLLEAGUES.

ARE THERE ANY QUESTIONS OR COMMENTS ON THIS ITEM? OKAY.

UM, I WANTED TO JUST MAKE ONE QUICK COMMENT.

UM, YOU KNOW, THE GREATEST CONCERN TO ME IN THIS PARTICULAR, YOU KNOW, AUDIT RECAP IS THE CONFIRMATION OF INFORMATION THAT I THINK WE ALL ALREADY KNOW, WHICH IS THAT THE PARKS DEPARTMENT DOES NOT HAVE THE RESOURCES.

IT NEEDS TO MEET THE EXPECTATIONS OF OUR RESIDENTS AT THE LEVEL.

WE WOULD LIKE, UM, WE KNOW THAT OUR RESIDENTS VALUE THEIR PARKS, THEIR POOLS, THEIR TRAILS, AND RECREATIONAL PROGRAMS. AND THAT PART HAS NOT HAD THE RESOURCES TO MEET THESE DEMANDS OF OUR GROWING CITY.

MANY OF US WHO ARE ON THE DIOCESE TODAY HAVE BEEN STRONG ADVOCATES FOR ADDITIONAL FUNDING.

UM, THE DOCUMENT MAKES SPECIFIC REFERENCE TO OUR AQUATICS FACILITIES.

UM, BUT I THINK THAT WE KNOW THAT WE HAVE OTHER AREAS OF NEED, UM, OUR FIELDS, OUR REC CENTERS ARE THERE PARK ASSETS THAT ALSO REQUIRE ADDITIONAL RESOURCES FOR MAINTENANCE AND ALSO JUST TO MEET DEMANDS OF THE GROWING CITY.

UM, I THINK WHAT THIS DOCUMENT DOES IS REALLY UNDERSCORE THAT WE HAVE WORK AHEAD OF US TO INCREASE OUR FINANCIAL ALLOCATIONS FOR PARD AND TO DETERMINE NEW WAYS TO INFUSE INVESTMENTS IN THIS DEPARTMENT.

AND I REALLY DON'T THINK THAT BUSINESS AS USUAL IS GOING TO WORK ANYMORE.

UM, WE HAVE MANY OF US ON THIS DIET TODAY.

I'VE WORKED REALLY HARD OVER THE PAST SEVERAL YEARS TO INCREASE RESOURCES IN VARIOUS WAYS AND HAVE BEEN SUCCESSFUL AT DOING THAT.

UM, BUT THERE'S MUCH MORE WORK TO BE DONE.

I INTEND TO INVEST ENERGY AND TIME INTO TRYING TO FIND NEW WAYS TO ADD TO PARTS FUNDING.

UM, AND I HOPE THAT OTHER COLLEAGUES, UM, WILL BE INTERESTED IN JOINING ME IN THOSE EFFORTS.

UM, BECAUSE I THINK THIS IS SOMETHING THAT OUR COMMUNITY, UM, WOULD VERY MUCH APPRECIATE.

UM, SO THANK YOU TO THE AUDITOR, THANK YOU TO DIRECTOR MCNEELY, UM, FOR BRINGING THIS FORWARD.

IT IS IMPORTANT THAT WE SEE THE RESULTS OF THE AUDIT, UM, AND UNDERSTAND THE CLOSURE AND UNDERSTAND WHEN WE DO NEED TO MAKE INVESTMENTS SUCH AS IN THE SYSTEM, UM, THAT SHE DESCRIBED.

SO THANK YOU.

UM, DO WE NEED A, WE NEED A VOTE TO, UH, YOU KNOW, OKAY.

SO I GUESS THIS IS A DIFFERENT KIND OF AUDIT, SO WE DON'T NEED TO.

OKAY.

ALL RIGHT.

THANK YOU.

SO

[4. Discussion and possible action regarding the proposed bylaw amendments for the Animal Advisory Commission]

WE'LL NOW MOVE ON TO ITEM FOUR, WHICH IS DISCUSSION AND POSSIBLE ACTION REGARDING THE PROPOSED BYLAW AMENDMENTS FOR THE ANIMAL ADVISORY COMMISSION.

I'M GOING TO INVITE VICE CHAIR POOL TO INTRODUCE THIS ITEM.

I AM BRINGING A MOTION TO, UM, CREATE, UM, A NEW COMMITTEE FOR THE ANIMAL, UM, ADVISORY COMMISSION, UH, AND TO DO THAT, WE HAVE TO AMEND THE COMMISSION'S BYLAWS IN SECTION EIGHT, A, UM, I WILL REFER YOU ALL TO A MEMO THAT WE'VE GOT FROM ANIMAL SERVICES, CHIEF ANIMAL SERVICES, OFFICER DON BLAND JUST TODAY THAT GIVE US SOME BACKGROUND INFORMATION ON WHERE WE'RE AT.

UM, AND THEN I WILL MAKE THE MOTION CHAIR, UH, WHEN THAT'S APPROPRIATE.

THANK YOU.

ARE THERE ANY QUESTIONS OR COMMENTS FROM THE DICE, UM, WHEN YOU MAKE THE MOTION, IF YOU WANT TO JUST REFER FOLKS TO THE AMENDMENT, WHICH I'M ASSUMING IS NOW IN BACKUP THAT'S RIGHT.

SO I'LL GO AHEAD AND READ IT INTO THE RECORD.

UM, SO THAT IT'S REALLY CLEAR AND WE DON'T HAVE ANY, UH, LEGAL CONCERNS ABOUT THE LANGUAGE THAT WE'RE, WE'RE MAKING, UH, THAT WE ARE, UH, USING.

SO MY MOTION, I MOVE TO APPROVE THE NEW STANDING COMMITTEE AS VOTED ON AT THE SEPTEMBER 13 ANIMAL ADVISORY COMMISSION MEETING.

AND TO AMEND THE COMMISSION'S BYLAWS IN SECTION EIGHT, A AS FOLLOWS THE ANIMAL ADVISORY COMMISSION HAS THE FOLLOWING STANDING COMMITTEES ONE, THE COMMITTEE TO SUSTAIN AND ADVANCE NO-KILL SHALL SERVE IN AN ADVISORY CAPACITY TO THE FULL BOARD ON ISSUES RELATED TO MONITORING MAINTENANCE AND ADVANCEMENT OF CITY COUNCILS.

NO KILL ANIMAL SHELTERING POLICY.

THANK YOU.

DO WE HAVE A SECOND?

[00:15:03]

I'LL SECOND THAT MOTION.

UM, ALL THOSE IN FAVOR BUZZ UNIT, ACTUALLY, I HAVE A QUESTION.

I'M SO SORRY, CHAIR.

GO AHEAD.

UM, I'M HOPING THAT FOR PEOPLE WHO ARE AT HOME, WHO MIGHT BE WATCHING, WE COULD EXPLAIN MAYBE A LITTLE BIT ABOUT THE HISTORY OF WHY THIS ITEM HAS COME UP TODAY AND WHAT WE KNOW THE PURPOSE THAT IT WILL SERVE, BUT, UM, JUST KIND OF EXPLAINING HOW IT WILL HELP THE ANIMAL ADVISORY COMMITTEE FOR COUNTS, REMEMBER BOULEVARD.

SURE.

AND I DON'T KNOW IF, UM, I SEE MR. BLAND IS ON THE VIRTUAL DYESS THERE AS WELL.

UM, I WILL SAY THAT THE CITY OF AUSTIN HAS A LONG HELD, UM, PREFERENCE FOR NO-KILL.

AND IN FACT, WE ARE A LEADER IN THE NATION FOR OUR NO-KILL POLICIES.

UM, THE MEMO THAT MR BLAND PROVIDED TO US LISTS AT LEAST THREE RESOLUTIONS, TWO OF WHICH I BELIEVE I LED ON, UH, IN 2019 TO ADVANCE THESE LIFE-SAVING DIRECTIVES.

AND WE ARE IN A VERY ENVIABLE POSITION AT 97% LIVE OUTCOMES FROM OUR ANIMAL SERVICES, UM, PROGRAMS AND OPERATIONS.

AND WE, UM, BECAUSE OF THE PANDEMIC, THERE WERE, UH, CHANGES TO THE ENVIRONMENT SUCH THAT WE REALIZED THAT WITHOUT CLOSER ATTENTION TO NO KILL THROUGH MONITORING, UM, AND MAINTAINING AND ADVANCING, UH, OUR ANIMAL SHELTERING POLICY, THAT WE MIGHT LOSE SOME OF OUR, UM, STATURE AND STATUS, UH, WITH REGARD TO NO-KILL.

SO THE ADVISORY COMMISSION HAS BEEN TALKING ABOUT THIS FOR SOME TIME AND THEY FELT IT WAS NECESSARY AND WISE AT THIS POINT TO BRING A MORE CONCERTED FOCUS AROUND NO-KILL TO EDUCATE OUR COMMUNITY ABOUT WHAT IT DOES AND DOESN'T MEAN.

AND THEN ALSO TO ENSURE THAT WE SHORE UP SUPPORT FOR THE NETWORKS THAT ARE NECESSARY IN ORDER TO MAINTAIN SUCH A HIGH LEVEL OF LIGHT OUTCOMES, UM, UH, OFFICER BLAND, UH, OUR ANIMAL SERVICES OFFICER, MR. BLAND, IS THERE ANYTHING THAT YOU WANTED TO ADD? THANK YOU, COUNCIL MEMBER POOL.

I WOULD LIKE TO SAY THAT, YOU KNOW, ANIMAL SERVICES IS COMMITTED AND WE DO HAVE, UH, ALL OF THE COUNCIL ACTIONS AND RESIDENT RESOLUTIONS AND ORDINANCES THAT WE DO FOLLOW.

AND OF COURSE WE HAVE ACM, UH, HAYDEN POWER WHO OVERSEES TO GUARANTEE THAT WE DO FOLLOW THOSE.

UM, SO, YOU KNOW, WITH EVERYTHING THAT WE HAVE IN PLACE AND, UH, WITH EVERYTHING THAT WE'VE BEEN DOING PROACTIVELY DURING THE PANDEMIC TO ADJUST, I THINK THAT, YOU KNOW, IT'S, IT'S SHOWED THAT WE ARE COMMITTED TO MAINTAINING NO KILL.

AND I THINK WE HAVE ALL OF THE NECESSARY ITEMS IN PLACE TO KEEP THAT GOING FORWARD.

THANKS MR. BLAND.

AND I, I WOULD JUST SAY THAT THE COMMUNITY SUPPORTS NOW KILL AND THE CITY OF AUSTIN, WE WOULDN'T BE ABLE TO MAINTAIN SUCH A HIGH LEVEL OF LIVE OUTCOMES WITHOUT OUR COMMUNITY MEMBERS BEHIND US.

SO I THANK THE ANIMAL SERVICES, UH, ADVISORY COMMISSION FOR, UH, COMING TO US WITH THE REQUEST TO HAVE A FOCUSED, UH, STANDING COMMITTEE AROUND NO-KILL COUNCIL MEMBER.

KELLY, THANK YOU SO MUCH FOR EXPLAINING THAT, UM, VICE-CHAIR POOL, I GUESS THE, THE PART THAT SEEMS A LITTLE CONFUSING TO ME, AND MAYBE WE COULD GET SOME CLARITY, IS THAT BECAUSE WE ARE MEETING THAT 90% OR GREATER LIVE OUTCOME RATE AT THE ANIMAL FACILITY OR THE ANIMAL, UM, SERVICES OFFICE, I'M CURIOUS TO KNOW, ARE WE TRYING TO STRIVE FOR BETTER THAN THAT BY DOING THIS COMMITTEE SO THAT WE HAVE EVEN BETTER OUTCOMES FOR THE ANIMALS? I I'LL I'LL I'LL T I ASSUME THAT'S COMING MY WAY, OR MAYBE IT'S TO MR. BLAND, BUT I WOULD ANSWER YES, ABSOLUTELY.

TO THE EXTENT THAT WE CAN.

OKAY.

THANK YOU FOR THAT CLARITY.

YOU BET, MR. BLAND, UM, ALL I WILL SAY TO THAT IS, UH, WHEN, WHEN YOU ARE AT 97, 90 8%, UH, IT WAS JUST PUBLISHED, UH, JUST A FEW DAYS AGO FROM, UH, AMERICAN PETS ALIVE THAT YOUR, UH, ANIMALS THAT ARE PUBLIC SAFETY THREATS SHOULD BE BETWEEN TWO TO 5%.

AND OURS ARE A LOT LESS THAN THAT.

AND SO WE ARE ALREADY EXCEEDING WHAT THE STANDARDS ARE, YOU KNOW, FOR MOST PEOPLE.

AND SO, UM, YOU KNOW, 97, 90 8%, IT'S GOING TO BE VERY DIFFICULT, UH, TO ADVANCE TO THAT 100% WITH, YOU KNOW, ANIMALS THAT OF COURSE HAVE

[00:20:01]

BEEN, YOU KNOW, WE CAN GET BY CARS AND THINGS THAT WE CAN'T HAVE ANY CONTROL OVER.

SO WE, WE STRIVE TO DO THE BEST WE POSSIBLY CAN WITH OUR RESOURCES AND, UH, SAVE EVERYTHING WE POSSIBLY CAN.

AND I DON'T KNOW THAT, YOU KNOW, GETTING TO 99 AND A HUNDRED IS, IS, IS POSSIBLE THAT WE WOULD TRY.

THANK YOU.

UM, SO BEFORE WE VOTE, JUST WANT TO CONFIRM, I GUESS, WITH THE CLERK'S OFFICE OR, UM, WITH THE AUDITOR, FOR THE BACKUP, FOR THIS MEETING, IF WE CAN MAKE SURE THAT WE HAVE BOTH THE ACTUAL AMENDMENT, WHICH I'M ASSUMING IS UP ALREADY, UH, AS WELL AS THE MEMO ABOUT ALL THE WORK THAT ANIMAL SERVICES IS DOING, UM, IN THIS REGARD THAT THEY JUST SUBMITTED, UM, AND THEN HAVE ALL OF THAT ALSO MOVE FORWARD TO THE COUNCIL MEETING, ASSUMING THIS WILL BE PUT ON THE AGENDA FOR A VOTE NEXT WEEK, UM, AT THE COUNCIL MEETING, DOES THAT WORK? WE HAVE THE .

OKAY.

THANK YOU.

UM, SO I BELIEVE WE HAVE A MOTION AND A SECOND, ALL THOSE IN FAVOR COUNCIL MEMBER, KELLY, YOUR HAND WAS UP.

I CAN'T SEE REAL WELL.

OKAY.

ALL RIGHT.

DOES THAT WAS UNANIMOUS ON THE DIOCESE WITH THE MAYOR OFF? THANK YOU.

THANK YOU, COUNCIL MEMBER POOL FOR THANKS.

BRINGING THAT.

UM, ALL RIGHT.

WE ARE NOW GOING TO MOVE TO ITEM SIX.

[6. Briefing on Investment Policy updates.]

UM, AS I MENTIONED, WE'RE MOVING ITEM FIVE TILL LATER.

UM, SO ITEM SIX IS THE BRIEFING ON INVESTMENT POLICY UPDATES.

UM, MS. THOMAS WILL INTRODUCE THEM, I BELIEVE.

GOOD MORNING.

COUNCIL MEMBERS.

I'M DIANA THOMAS, DEPUTY CHIEF FINANCIAL OFFICER WITH THE FINANCIAL SERVICES DEPARTMENT, BELINDA WEAVER AND DEBBY FLEMING.

WE'LL BE DOING THE PRESENTATION ON THE PROPOSED CHANGES TO THE INVESTMENT POLICY LONDON.

THANK YOU, DIANA.

AND I BELIEVE WE HAVE A PRISONER EDITION.

OKAY.

SO CITY HALL LAVEY.

THIS IS FOR, UH, AGENDA ITEM, NUMBER SIX, PLEASE.

UH, TERRIBLE WHILE WE'RE PULLING UP THE RIGHT PRESENTATION.

I JUST WANT TO COMMENT THAT DEPENDING ON WHAT TIME WE TAKE UP THE CULTURAL ARTS AND HISTORIC PRESERVATION ITEM, I MAY ASK THAT THE HISTORIC PRESERVATION PIECE BE TABLED.

UM, I BELIEVE IT'S RESPONDING AND PART TWO DIRECTION THAT I PROVIDED DURING THE BUDGET SESSION.

UM, AND AS YOU KNOW, I'M STAYING ON, I CAN ONLY REMAIN IN AUDIT AND FINANCE UNTIL OUR SCHEDULED 1130 STOPS SO WE CAN SEE WHERE WE GET TO ON IT.

BUT, UM, I BELIEVE THERE'S A CONSIDERABLE AMOUNT WE NEED TO TALK ABOUT WITH REGARD TO THE HISTORIC PRESERVATION BEFORE THE COUNCIL APPROVES THAT BUDGET.

SO HOPEFULLY WE'LL HAVE AN OPPORTUNITY TO DO THAT TODAY.

AND IF NOT, I'D LIKE AN OPPORTUNITY TO DO THAT IN A DIFFERENT SETTING.

SURE, ABSOLUTELY.

UM, WE MAY HAVE TO DO A SPECIAL CALLED AUTUMN FINANCE MEETING TO ADD ADDITIONAL ONE, UM, IN THE NEXT COUPLE OF MONTHS.

UM, BUT WE DO HAVE THE HISTORIC FUNDING I BELIEVE WAS SCHEDULED TO GO FIRST, AS I UNDERSTOOD IT AS OF YESTERDAY, THEY MAY HAVE CHANGED IT IN THE PRESENTATION.

UM, BUT THAT WOULD ACCOMMODATE, RIGHT.

THANK YOU.

THANK YOU.

AND THE DIRECTION REALLY WAS TO COME BACK TO THE FULL COUNCIL.

SO THIS MAY JUST BE A PRELIMINARY CONVERSATION AND, UH, UH, DIFFERENT TIME IS SCHEDULED FOR THE FULL WORK SESSION.

AND IN WHICH CASE THAT'S A DIFFERENT, A DIFFERENT MATTER.

BUT IF THIS IS CONSIDERED TO BE THE ONE AND ONLY, UM, ONE, I'M NOT SURE THAT THAT'S APPROPRIATE TO THE DIRECTION, BUT TO, UM, WE MAY BE ABLE TO, WE MAY NEED TO JUST RETHINK THAT.

THANK YOU.

BEEN TO CONFLICTING DIRECTIONS BECAUSE I THINK CULTURAL ARTS, IT WAS SAID IT WOULD GO TO AUDIT AND FINANCE NEXT.

UM, AND SO THEY MIGHT'VE BEEN COMBINED, UM, BUT WE WILL DO OUR BEST TO MOVE THROUGH.

UM, IT LOOKS LIKE COUNCIL MEMBER KITCHEN IS TRYING TO SPEAK.

UM, BUT WE CAN'T HEAR YOU.

CAN YOU UNMUTE, CAN YOU HEAR ME NOW? YES, WE CAN.

GOOD MORNING.

I HAVE THE, UH, THANK YOU CHAIR.

I JUST WANTED TO COMMENT THAT I HAVE, UH, UH, I'M PARTICIPATING TODAY.

I'M NOT ONLY COMMITTEE, BUT I'M PARTICIPATING TODAY BECAUSE OF THE REPORT BACK FOR, YOU KNOW, FOR CULTURAL ARTS.

AND IT WAS, YOU KNOW, STATED THAT THAT WOULD BE SOMETHING THAT EVERYONE CAN PARTICIPATE IN, BUT I, I HAVE THE SAME CONFLICT THAT COUNCIL MEMBER TOBO HAS AT 1130.

SO, UM, I'M HOPING THAT WE CAN GET TO THE CULTURAL ARTS,

[00:25:01]

UM, ASPECT OF IT ALSO BY THEN.

OKAY.

WELL, WE WILL DO THE BEST THAT WE CAN, UM, TO MOVE THROUGH.

WE HAVE, UM, SOME OTHER ITEMS TO TAKE UP TO TAKE UP FIRST, UM, THAT WE HAVE SOME RESPONSIBILITY TO GET THROUGH TODAY AND THAT HAVE BEEN POSTPONED A FEW TIMES.

SO, UM, WE'RE GONNA TAKE UP THE INVESTMENT POLICY REVIEW.

OKAY.

WHEELCHAIR, CAN I ADD SOMETHING ELSE? UH, I WOULD JUST ASK IF WE'RE NOT ABLE TO GET TO IT, PERHAPS, YOU KNOW, THE SPECIAL CALL MEETING IS THE, IS THE, UM, UH, IS THE SOLUTION BECAUSE, UM, THIS IS THE ONLY AVENUE I THINK, FROM WHAT YOU JUST SAID, THAT IT WAS ALREADY PUT BACK TO THIS COMMITTEE, WHICH IS GREAT, BUT IT'S THE ONLY AVENUE FOR US TO PARTICIPATE.

SO WE DON'T GET TO IT BY 1130.

I WOULD, I WOULD ASK THAT THERE BE ANOTHER OPPORTUNITY.

SO MAYBE WE JUST BRING IT BACK TO THE FULL COUNTY AND HOPEFULLY WE CAN GET THROUGH AS MUCH OF THIS AS QUICKLY AS WE CAN.

UM, WE'RE MOVING PRETTY QUICKLY THIS MORNING AND HOPEFULLY IT WON'T BE, IT WON'T BE AN ISSUE.

UM, I DO JUST WANT TO POINT OUT THAT THIS WAS NOT INTENDED TO BE THE ONLY TIME IT WAS MEANT TO BE A CHECK-IN, UM, BELIEVE THAT THEY ARE STILL VERY MUCH DEEP IN THEIR, UM, DELIBERATIONS.

AND SO, UM, I THINK WE'RE JUST, WE'RE JUST GETTING AN UPDATE REALLY AT THIS POINT, WE'RE NOT OF KIND OF WHERE THE DISCUSSIONS ARE.

WE'RE NOT ACTUALLY, UM, I DON'T THINK ANY, ANY PR FIRM PROPOSALS ARE BEFORE US, THE ARTS COMMISSION JUST MET LAST NIGHT AND HAD SOME UPDATED, UM, INFORMATION.

SO, SO THIS WAS NOT INTENDED TO BE THE TIME TIME, THE ONLY TIME THAT COUNCIL, UM, WEIGHED IN, BUT A CHECK-IN.

UM, BUT WE WILL ADDRESS, UM, TRY TO ADDRESS EVERYONE'S NEEDS AS BEST WE CAN.

ALRIGHT.

SO, UM, IF BELINDA WOULD LIKE TO GO MUST BE BAR.

YES.

UM, IF YOU COULD PULL UP THE PRESENTATION, PLEASE, UM, THIS IS NOT THE CORRECT PRESENTATION.

IT'S ITEM SIX, IT'S THE BRIEFING ON THE, UP ON THE INVESTMENT POLICY.

THERE WE GO.

THERE WE GO.

GREAT.

THANK YOU.

SO GOOD MORNING CHAIR, COMMITTEE MEMBERS, UM, BELINDA WEAVER, CITY TREASURER.

AND WITH ME, I HAVE DEBBIE FLEMING, WHO IS DEPUTY CITY TREASURER OVER INVESTMENT MANAGEMENT.

WE'RE HERE TODAY TO BRIEF YOU ON PROPOSED CHANGES TO THE CITY'S INVESTMENT POLICY FOR FISCAL YEAR 2022.

NEXT SLIDE PLEASE.

SO THE FOUNDATION OF THE CITY'S INVESTMENT POLICY IS THE PUBLIC FENCE INVESTMENT ACT OTHERWISE REFERRED TO AS THE PFA, WHICH FALLS UNDER CHAPTER 22, 56 OF THE TEXAS GOVERNMENT CODE PFI IS VERY EXPLICIT AND ITS REQUIREMENT OF MUNICIPALITIES, AS IT RELATES TO THE INVESTMENT OF PUBLIC FUNDS, IT IS WORTH NOTING THAT THE CITY CONTINUES TO BE IN FULL COMPLIANCE WITH ALL PFI REQUIREMENTS LISTED.

HERE ARE THE PFA REQUIREMENTS RELATED TO THE INVESTMENT POLICY REVIEW AND APPROVAL BY THE GOVERNING BODY.

THIS PFA REQUIREMENT DETAILS, THE ANNUAL REVIEW AND APPROVAL OF THE INVESTMENT POLICY.

EVEN IF THERE ARE NEW CHANGES.

HOWEVER, THERE ARE CHANGES BEING PROPOSED FOR THE FISCAL YEAR 22 INVESTMENT POLICY, THREE OF WHICH WE CONSIDER SUBSTANTIVE.

THE REMAINDER OF THE CHANGES ARE MINOR IN NATURE, JUST SMALL EDITS AND TITLE UPDATES.

PRIMARILY THE FISCAL YEAR 22 INVESTMENT POLICY HAS BEEN APPROVED BY THE CITY'S INVESTMENT COMMITTEE AND WILL BE BROUGHT FORWARD TO THE FULL CITY COUNCIL FOR APPROVAL ON OCTOBER 14.

NOW I'LL HAND IT OVER TO DEBBIE TO GO OVER THE PROPOSED SUBSTANTIVE CHANGES TO THE POLICY.

THANK YOU.

EXCELLENT, PLEASE.

GOOD MORNING, EVERYONE.

THANK YOU, BELINDA, ON THAT, OUR FIRST PROPOSED CHANGE IS TO THE CERTIFICATION SECTION AND ORIGINATES FROM THE SUGGESTION MADE DURING THE CITY'S INVESTMENT POLICY REVIEW BY THE GOVERNMENT TREASURERS ASSOCIATION OF TEXAS FROM A CERTIFICATE OF DISTINCTION, WHICH THE CITY'S INVESTMENT POLICY DID OBTAIN THE RECOMMENDATION WAS TO INCORPORATE THE EXPANDED CERTIFICATION LANGUAGE, WHICH WAS ALREADY IN OUR INVESTMENT PROCEDURES AND INCORPORATE THAT INTO THE INVESTMENT POLICY NEXT, PLEASE.

THE TWO ADDITIONAL PROPOSED CHANGES ARE FOR THE OPERATING FUNDS AND CO-MINGLED CO-MINGLED POOLS FOR TWO CHANGES.

ONE TO EXTEND THE WEIGHTED AVERAGE MATURITY OF THE POOR OPERATING FUNDS FROM 365 DAYS TO TWO YEARS, AND TO

[00:30:01]

EXTEND THE MATURITY OF THE STATED VINYL OF A SECURITIES PURCHASE FROM THREE YEARS TO FIVE YEARS, NEXT SLIDE, PLEASE, IN A NORMAL YIELD CURVE, YOU WOULD EXPECT TO LOCK IN FUNDS FOR A LONGER PERIOD OF TIME AND EARN A HIGHER YIELD.

THIS CHART IS A ONE-YEAR HISTORICAL ILLUSTRATION OF THE YIELD DIFFERENCE BETWEEN A US TREASURY THREE YEAR DEAL DESIGNATED BY THE BLUE LINE AND THE US TREASURY FIVE-YEAR YIELD DESIGNATED BY THE PINK LINE.

THE RECOMMENDATION IS TO EXTEND THE LENGTH OF THE SECURITY PER PURCHASE TO PERIODICALLY TAKE ADVANTAGE OF THIS ADDITIONAL YIELD.

WHEN FIRST LIQUIDITY IS FULLY COVERED.

SECOND, WHEN MARKET CONDITIONS ARE FAVORABLE AND THE POOL CAN PICK UP YIELD TO DO SO.

AND THIRD, THE NEW OVERALL WEIGHTED AVERAGE MATURITY HAS SUFFICIENT PUSHING THE POOL IS NOT GOING TO CREEP UP CLOSE TO THE PROPOSED NEW WEIGHTED AVERAGE MATURITY LIMIT.

WE ALWAYS WANT TO MAINTAIN FLEXIBILITY IN THE PORTFOLIO FOR CONTINGENCIES.

NEXT SLIDE, PLEASE.

THE POOL HAS STEADILY INCREASED IN SIZE AS THIS GRAPH OF THE PAST 10 YEARS ILLUSTRATES AS OF AUGUST OF THIS YEAR, THE POOL BALANCE WAS $2.84 BILLION.

NEXT SLIDE, PLEASE.

THIS IS WHAT IS THE POOL INVESTED IN AS OF AUGUST 31ST? AND AS YOU CAN TELL, WE HAVE A VERY WELL DIVERSIFIED PORTFOLIO OF US, TREASURY NOTES, TREASURY BILLS, AGENCY NOTES, AND LOCAL GOVERNMENT INVESTMENT BULLS ARE LGI PS, WHICH ARE LIKE MONEY MARKET FUNDS AND PROVIDE DAILY LIQUIDITY FOR LOCAL GOVERNMENTS.

AS OF AUGUST 31ST, OUR WEIGHTED AVERAGE MATURITY ON THE PORTFOLIO WAS 193 DAYS.

LTI PEAS ARE CURRENTLY YIELDING 0.02% IN A TYPICAL MARKET.

AND LGP RATE WOULD BE HIGHER THAN A TREASURY BILL RATE, BUT THAT'S NOT THE CASE TODAY.

THE CITY CAN PURCHASE T-BILLS FOR A HIGHER RATE THAN THE INVESTMENT POOLS AND CURRENTLY DOES.

SO TO FUND KNOWN PURCHASES SUCH AS PAYROLL, SINCE THE FEDERAL OPEN MARKET COMMITTEE IS EXPECTED TO KEEP THE FEDERAL FUNDS RATE AT VIRTUALLY ZERO FOR 2022, HAVING THE POTENTIAL TO INVEST OUT TO THE FIVE-YEAR AREA CAN PROVIDE SOME FIRE RATES FOR THE BULL PORTFOLIO, BUT ONLY IF WE HAVE AMPLE LIQUIDITY CUSHION AND THE MARKET TIMING MAKES SENSE.

NEXT SLIDE, PLEASE, TO COMBAT THE PANDEMIC UNPRECEDENTED, MONETARY AND FISCAL STIMULUS, THAT'S BEEN DEPLOYED SINCE MARCH OF 2020, THE FEDERAL OPEN MARKETS COMMITTEE AT THE FEDERAL FUNDS RATE BY 1.5% IN ONE MONTH TO PROVIDE STABILITY TO OUR FINANCIAL MARKETS.

IN ADDITION, THE FEDERAL RESERVE BEGAN PURCHASING MONTHLY $80 BILLION IN LONGER TERM US TREASURY NOTES AND $40 BILLION IN MORTGAGE BACKED SECURITIES TO STABILIZE OUR MARKETS IN KEEP INTEREST RATES LOW, THE FED WILL START LOWERING THE LEVEL OF THESE PURCHASES ARE TAPERING OVER THE COMING MONTHS.

IN FACT, THE FMC IS MEETING TODAY.

WE'LL HAVE AN ANNOUNCEMENT SOMETIME THIS AFTERNOON DURING THE SUN PRESIDENT AT TIME, THE FED HAS BEEN VERY TRANSPARENT ABOUT THE FUTURE.

MONETARY INTENTIONS.

FIRST INFLATION IS BEING ALLOWED TO RUN AT HIGHER THAN 2% AS SECTIONS OF THE ECONOMY ARE TRYING TO RAMP UP AND RESTART AND HAD HAD MULTIPLE RESTARTS DUE TO COVID SURGEONS.

AND SECONDLY, THE NEED TO ACHIEVE SUBSTANTIAL PROGRESS FOR FULL EMPLOYMENT BEFORE THE FED SIGNALS A RAISE IN THE FUND AND THE FEDERAL FUNDS RATE SINCE MARCH OF 2020, A ONE YEAR INVESTMENT HAS AVERAGED LESS THAN 0.1%.

AND AS I'VE MENTIONED BEFORE, LOCAL GOVERNMENT INVESTMENT POOLS ARE YIELDING AT 0.02.

THE SHORT END OF THE MARKET WILL CONTINUE TO BE AT VERY LOW LEVELS UNTIL THE FEDERAL FUNDS RATE INCREASES, BUT IT IS EXPECTED TO BE ON HOLD UNTIL SUBSTANTIAL PROGRESS IS MADE

[00:35:01]

FOR FULL EMPLOYMENT.

WE CURRENTLY ESTIMATE THAT 8.7 MILLION PEOPLE CONTINUE TO REMAIN AN EMPLOYED.

SO IT IS WIDELY EXPECTED THAT A RATE HIKE IS AT LEAST ONE YEAR AWAY.

THE REQUESTED CHANGES TO THE INVESTMENT POLICY TO EXTEND THE WEIGHTED AVERAGE MATURITY TO TWO YEARS AND HAVE FINAL LINK OF A SECURITY PURCHASE TO FIVE YEARS OR TO PROVIDE ADDITIONAL INVESTMENT OPTIONS TO UTILIZE WHEN THE MARKET TIMING IS FAVORABLE, WHEN ALL LIQUIDITY NEEDS OF THE HAVE BEEN MET OUR INVESTMENT PRIORITIES, CONTINUE TO BE SAFETY FIRST LIQUIDITY, AND THEN HEALED AND HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.

THANK YOU.

UM, IF YOU CAN TAKE DOWN THE SLIDE SO I CAN SEE IF FOLKS HAVE THEIR HANDS UP, UM, COLLEAGUES, ANY QUESTIONS? UM, I HAVE JUST ONE QUESTION.

UM, WHAT ACCOUNTS FOR THE INCREASE IN THE POOL OVER TIME, WHAT ACCOUNT? SO ONE OF YOUR SLIDES IS A BAR GRAPH ON PAGE SIX THAT SHOWS HOW THE POOL BALANCES HAVE INCREASED OVER TIME.

AND SORRY, GO AHEAD, DEBBIE.

TH THAT IS JUST THE GRAPH OF ONLY THE INVESTMENT POOL, WHICH WE'RE TALKING ABOUT SOLELY FOR THE EXTENSION OF BOTH THE WHAM AND THE SECURITY AND THE GROWTH IN THE INVESTMENT POOL OVER TIME HAS JUST BEEN KIND OF COUPLED WITH THE GROWTH OF THE CITY.

SO AS THE CITY HAS GROWN, UM, REVENUE IS GROWN.

UH, THE POOL ITSELF HAS GROWN.

OKAY, BUT IT WENT UP 2 BILLION IN 10 YEARS.

IT WAS ABOUT 1.5 BILLION IN ABOUT 10 YEARS.

CORRECT.

AND THOSE REVENUE SOURCES COME FROM, UM, PROPERTY TAXES.

THEY COME FROM FEES, UH, THINGS OF THAT NATURE, THAT ALL REVENUE SOURCES FOR THE CITY.

OKAY.

ALL RIGHT.

UM, SO FOR THE NEXT STEPS ON THIS, UM, THIS WILL BE COMING TO AN OCTOBER COUNCIL MEETING, UM, WITH, I ASSUME, A WRITE-UP FOR WHAT THE EXACT AMENDMENTS ARE FOR THE POLICY WITHIN THAT.

AND THEN THIS, UH, WE'LL BE BACK UP TO THAT, IS THAT THE PLAN THAT'S CORRECT.

AND WITHIN THE RESOLUTION THAT'S APPROVED BY CITY COUNCIL, IT WILL DETAIL THE, UH, THE CHANGES THAT ARE BEING MADE TO THE INVESTMENT POLICY AS WELL AS A BACKUP FOR A RED LINE VERSION OF THE INVESTMENT POLICY.

GREAT.

THANK YOU.

UM, THIS WAS A BRIEFING, SO WE DO NOT NEED TO TAKE ANY ACTION THIS MORNING.

UM, THANK YOU FOR BEING WITH US THIS MORNING.

[7. Briefing on the Strategic Facilities Governance Team on Administrative Office Occupancy Plan progress and next steps.]

UM, WE WILL NOW TAKE UP ITEMS SEVEN, WHICH IS A BRIEFING ON THE STRATEGIC FACILITIES GOVERNANCE TEAM ON ADMINISTRATIVE OFFICE OCCUPANCY PLAN PROGRESS, AND NEXT STEPS.

UM, AND I THINK MS. ALAVAREZ IS LEADING THAT GOOD MORNING, EVERYBODY.

I'M KIM ALAVAREZ DEPUTY CSO.

AND THANK YOU FOR, UH, FOR HAVING US THIS MORNING TO PROVIDE YOU THIS UPDATE, UM, WHILE THE PULLING UP THE PRESENTATION AND WE'LL DO SOME JUST QUICK INTRODUCTIONS.

UM, THE STRATEGIC FACILITIES GOVERNANCE TEAM HAS SEEN SOME PRETTY SIGNIFICANT, UH, CHANGES IN, UH, ITS MEMBERSHIP OVER THE LAST YEAR BECAUSE OF VARIOUS RETIREMENTS.

UM, GHERKIN HAS, HAS RETIRED AND JOINED THE ATP.

SO I AM NOW FULFILLING THAT ROLE.

UM, AND I'D LIKE TO LET MY COLLEAGUES INTRODUCE THEMSELVES BEFORE WE DIVE INTO THE PRESENTATION.

SO DARRYL AND MIKE, UM, DURING ALEXANDER VS A BUILDING SERVICES OFFICER FOR THE BUILDING SERVICES DEPARTMENT AND MICHAEL GATES, INTERIM OFFICER FOR ALLSTATE SERVICES.

GREAT.

WHEN WE ALSO HAVE, UM, WITH US, UM, TO HELP US ANSWER ANY QUESTIONS MIGHT COME UP, ANDY MOORE, WHO IS, UM, IS ON OUR TEAM HERE IN FSP.

WE'RE OVERSEEING ALL OF THE, UH, PUBLIC PRIVATE PARTNERSHIP TYPE FACILITIES.

AND WE'LL TALK A LITTLE BIT MORE ABOUT THAT AND, UH, I'M REALLY REMISS TO NOT BRING NOTE TIM, BECAUSE HE HAS BEEN SUCH AN AMAZING, UM, UM, TEAM MEMBER AND JUST LEADING THESE, THESE NEW PROJECTS FOR SOME PRETTY FANTASTIC FACILITIES.

SO, UM, GO AHEAD AND DIVE IN.

UM, IF YOU CAN GO NEXT SLIDE PLEASE.

SO, UM, WE'LL QUICKLY MOVE THROUGH, UM, QUITE A BIT OF CONTENT THIS MORNING.

FIRST, A QUICK REMINDER OF WHAT ARE THE GUIDING PRINCIPLES FOR OUR APPROACH TO THE

[00:40:01]

ADMINISTRATIVE OFFICE NEEDS FOR THE CITY OF AUSTIN, UH, PROVIDE SOME UPDATES ON, UM, THE DEVELOPER ASSISTED FACILITIES PROJECTS THAT WE'VE BEEN DOING.

UM, THEN AN OVERVIEW OF THE, UH, OFF OF OUR STRATEGIC ADMINISTRATIVE OFFICE INVESTMENT, UH, TALK ABOUT TELEWORKING IMPACT OF COVID-19 AND THEN ALSO AN OVERVIEW OF VARIOUS UPCOMING FACILITY PROJECTS WE HAVE ON THE BOOKS.

NEXT SLIDE.

SO OUR GOVERNING PRINCIPLES, UM, WHEN WE FIRST STARTED ALL OF OUR EFFORTS AROUND OUR STRATEGIC ADMINISTRATIVE OFFICE INVESTMENT, UM, APPROACH, UH, WE WANTED TO MAKE SURE THAT WE HAD A SERIES OF PRINCIPLES THAT REALLY EXPRESSED, UM, WHAT, WHAT IS, WHAT IS DRIVING ALL OF THESE CHANGES? BECAUSE THE CITY HAS WELL OVER 200 AND OR 200 RUN, TWO TO 50 DIFFERENT FACILITIES OF WHICH A PORTION OF THOSE ARE FOR ADMINISTRATIVE OFFICE PURPOSES.

UM, AS WE LOOK AT OUR OFFICES, WE WANT TO MAKE SURE THAT WE HAVE WORK ENVIRONMENTS FOR OUR EMPLOYEES THAT ARE GOING TO REALLY HELP THEM WITH THEIR PRODUCTIVITY, THEIR EFFICIENCY, UM, BECAUSE REALLY WHEN IT COMES DOWN TO IT, OUR EMPLOYEES ARE OUR GREATEST ASSET IN THE ORGANIZATION.

WE ALSO WANT TO MAKE SURE THAT WE ARE BEING VERY COGNITIVE OF TAXPAYER DOLLARS AND ENSURE THAT OUR OCCUPANCY COSTS, UM, WE'RE DECREASING THOSE OVERALL AND THAT WE ARE MAKING VERY SMART CHOICES FOR FUTURE INVESTMENTS.

WE ALSO WANT TO WANT TO IMPROVE THAT CUSTOMER EXPERIENCE FOR ALL OF OUR RESIDENTS AND VISITORS THAT HAVE INTERFACED WITH THE CITY, UM, IN VARIOUS WAYS.

UM, WE ALSO WANT TO MAKE SURE THAT IN SIMILAR TO THE MAKING SURE WE HAVE GREAT WORK ENVIRONMENTS FOR OUR CITY EMPLOYEES, WE WANT TO USE THAT AS A MEANS TO ATTRACT AND RETAIN TALENT, UM, FOR OUR WORKFORCE.

AND FINALLY, WE WANT TO MAKE SURE THAT WE'RE BEING PARTICULARLY FLEXIBLE AND RESILIENT IN OUR FACILITY DESIGN AND, AND SET UP, UM, BECAUSE OUR, AS WE HAVE ALL SEEN WITH, UM, THE, THE PANDEMIC, WE HAVE TO BE READY TO SHIFT OUR, HOW WE OPERATE AND HOW WE PROVIDE SERVICES, UM, VERY QUICKLY.

SO WE WANT TO MAKE SURE THAT OUR FACILITIES ARE DESIGNED IN A WAY TO BE VERY ADAPTIVE.

NEXT SLIDE.

UH, NOW WE JUST WANTED TO PROVIDE A LITTLE BIT OF AN UPDATE ON OUR, UM, TWO MAJOR, UH, DEVELOPER SPECIFIC FACILITIES THAT CAME ONLINE OVER THE LAST YEAR.

UM, FIRST ARE PROMOTING A DEVELOPMENT CENTER.

UM, THIS WAS THE FIRST OF, UH, FIRST FACILITY USE FOR THIS NEW APPROACH WHERE WE, UM, CONTRACT WITH A DEVELOPER, UM, TO, TO CARRY OUT THE DESIGN AND CONSTRUCTION OF THESE FACILITIES, WHERE IT PUTS THE RISK ON THE DEVELOPER.

SO THE CITY IS ABLE TO AVOID, UH, THE, THE RISK FINANCIAL AND SCHEDULE VARIOUS RISKS.

AND THEN AT THE END, ONCE THE DEVELOPER HAS DONE BUILDING THAT FACILITY WERE ABLE TO BUY IT BACK FROM THEM FOR OUR PURPOSES.

UM, SO THE RFP FOR THIS FOR RENTING AND BELLMONT CENTRA WAS ISSUED IN SEPTEMBER, 2016.

AND, UH, WE WERE ABLE TO START GROUNDBREAKING, UM, JUST OVER TWO YEARS LATER.

AND THAT INCLUDES ALL OF THE LAND ACQUISITION AND DESIGN WORK THAT HAD TO TAKE PLACE.

UM, WE WERE THEN ABLE TO CLOSE ALL THE PURCHASE OF THE BUILDING IN MAY OF 2020.

IT INCLUDES APPROXIMATELY 264,000 SQUARE FEET AND CAN ACCOMMODATE NEARLY A THOUSAND FTES.

AND, UM, WE, WITH THIS APPROACH, WE'RE ABLE TO CONTINUE TO EMBRACE THE VALUES THAT THE CITY OF AUSTIN HAS IN TERMS OF OUR FACILITIES AROUND ENVIRONMENTAL NEEDS, SUCH AS THE, WHERE WE HAVE THE LEAD PLATINUM TARGET.

AND SO EVALUATION OF THAT CERTIFICATION IS IN PROGRESS, THE AUSTIN ENERGY AND GREEN BUILDING FOUR STAR.

AND THAT ALSO IS IN PROGRESS, ALSO WELLBEING, WELL BUILDING TARGETS.

AND, UM, WE WERE ALSO ABLE TO UTILIZE OUR BETTER BUILDER PROGRAM AND LIVING WAGE.

UM, THE OTHER GREAT PART ABOUT THIS PARTICULAR BUILDING IS THAT EVEN WITH COVID, WE WERE ABLE TO DELIVER IT ON TIME AND UNDER BUDGET.

YOUR ORIGINAL BUDGET FOR THIS BUILDING WAS $121.5 MILLION.

AND THE ACTUAL COSTS ENDED UP BEING $120.7 MILLION.

UM, SO WE WERE ABLE TO DELIVER A BUILDING INCREDIBLY FAST, UM, DESPITE THE PANDEMIC AND UNDER BUDGET.

NEXT SLIDE.

THE OTHER FACILITY THAT RECENTLY OPENED IS OUR NEW AUSTIN ENERGY HEADQUARTERS, AND ALSO ENERGY IS ACTIVELY MOVING THEIR STAFF INTO THIS BUILDING.

THE RFP WAS ISSUED IN 2017.

GROUNDBREAKING WAS AGAIN, JUST A LITTLE OVER TWO YEARS LATER IN 2019, IT'S LOCATED IN THE MILLER AREA.

UM, AND WE FINALLY, WE ULTIMATELY CLOSED, UH, IN APRIL OF 2021, OVER 275,000 SQUARE FEET, 1200 FTES, UM, CAN OCCUPIED THIS BUILDING.

IT'S ALLOWING AAE TO, UH, UM, ELIMINATE THE NEED FOR A VARIETY OF LEASE SPACES.

THEY'RE ABLE TO CONSOLIDATE

[00:45:01]

A LOT OF STAFF INTO A SINGLE FACILITY, UM, AND SIMILAR TO THE PDC.

WE HAVE THE LEAD 80 GREEN BUILDING.

UM, WELL BUILDING BETTER BUILD A PROGRAM AND, AND LIVING WAGE THIS PRO THIS BUILDING WAS ALSO ABLE TO, UH, UM, HIGHLIGHT THE, OF OUR APPRENTICE APPRENTICESHIP PROGRAM.

AND SIMILAR TO PDC, WE ALSO WERE ON TIME AND UNDER BUDGET, ORIGINAL BUDGET WAS 142.5 MILLION, BUT IT WAS DELIVERED.

THE ACTUAL COST WAS $141.2 MILLION.

UH, SO A GREAT SAVINGS THERE.

UM, THE, AND AGAIN, IT WAS DELIVERED ON TIME, UM, WITH, DURING COVID.

SO WE'RE EXCITED FOR AUSTIN ENERGY TO MOVE INTO THE SPACE.

I KNOW THEY ARE VERY EXCITED AS WELL.

UM, AND WE'RE ACTIVELY WORKING WITH THEM ON, ON REALLOCATING PRIOR SPACES THAT THEY'RE VACATING, UM, TO MAKE SURE WE'RE ABLE TO CONTINUE MEETING SPACE NEEDS THROUGHOUT THE ORGANIZATION.

SO AT THIS POINT, I'M GOING TO ACTUALLY PASS IT OVER TO MICHAEL GATES TO TALK ABOUT OUR STRATEGIC ADMINISTRATIVE OFFICE INVESTMENT OVERVIEW.

OH, THANKS, KIM.

UH, NEXT SLIDE PLEASE.

NEXT SLIDE PLEASE.

OKAY.

SO YEAH, THIS IS JUST A BREAKDOWN OF THE THREE PHASES OF THE STRATEGIC ADMINISTRATIVE OFFICE INVESTMENT OVERVIEW.

SO WE'RE IN PHASE THREE.

NOW WE HAVE IMPLEMENTED THE STRATEGIC ADMINISTRATIVE OCCUPANCY PLAN THAT WAS FINALIZED IN AUGUST OF 2019.

UH, WE ARE CURRENTLY ASSESSING, UH, KEY CITY OWNED ASSETS, THAT BEING REDFORD LANE CAMPUS AND OTC.

AND MY COLLEAGUE WILL TOUCH ON BOTH OF THOSE A LITTLE BIT LATER IN THE PRESENTATION WE'VE CONDUCTED THE CITY WIDE CENSUS, BASICALLY DETERMINING ALL THE FTES THE CITY HAS AND WHERE THEY'RE LOCATED.

UH, WE'VE ALSO DEVELOPED ADMINISTRATIVE OFFICE OR ADMINISTRATIVE FACILITY PERFORMANCE SPECS.

I WILL TOUCH ON THAT A LITTLE BIT HERE IN THE NEXT COUPLE OF SLIDES.

WE'VE ALSO CONDUCTED THE TELEMARK SURVEY.

UM, WE'VE ALSO IMPROVED, UH, OUR ROASTING PROCESSES WITH RESPECT TO INTAKE FOR THE SF GT.

WE'VE GOT A NEW SHAREPOINT SITE.

WE'VE ALSO GOT A DEFINED ROLES AND RESPONSIBILITIES AGREED UPON WITH ALL THE DEPARTMENT HEADS THAT ARE INVOLVED IN THAT PROCESS.

AND WE'RE LOOKING FORWARD TO ROLLING THAT OUT.

IT'S, IT'S, IT'S READY TO GO.

UM, WE ARE ACTUALLY WORKING ON A CHARTER RENEWAL OF OUR CHARTER FIRST OF GT, AND IT'D BE AN OPPORTUNE TIME TO GET THAT OUT AT THE SAME TIME THAT WE GET THE NEW CHARTER OUT.

SO THAT SHOULD BE COMING SHORTLY.

AND THEN IN PROCESS, UM, THAT FORECASTING OF THE EXPENDITURES OF OUR, UH, OUR ASSETS OVER THEIR LIFE CYCLE.

UM, WE ALSO, IN THE FUTURE, WE'LL BE PERFORMING, UH, BASICALLY GROUND LEASE ASSESSMENTS OF CITY ASSETS AS IF, YOU KNOW, WE NEED REPURPOSE, UM, REDEVELOP, UH, RENOVATE OR MONETIZE THEM.

AND THEN, UH, WE ARE, YOU KNOW, IN THE PROCESS OF, UH, THE TRANSITION FROM LISA AND SPACE, UH, TO CITY OWNED SPACE.

SO THE NEXT SLIDE, PLEASE.

SO WHY NOW, WHY ARE WE, UH, ENGAGING IN THIS PROCESS? UH, THE CITY HAS COLLECTIVELY 759,000 SQUARE FEET OF LEASE SPACE EXPIRING IN THE NEXT FIVE YEARS.

UM, AND THEN WE ALSO HAVE 335,000 SQUARE FEET OF CITY OWNED SPACE, UH, THAT IS AT, OR NEARING FUNCTIONAL OBSOLESCENCE.

SO THE RECOMMENDATION IS THAT WE REPURPOSE AND REINVEST, UM, OR MONETIZE THOSE SPACES, UM, AND BETWEEN THE TWO OF THOSE THAT EQUATES TO 4,500 FTES, UH, THAT'LL BE DISPLACED IF GROWTH HOLDS IT'S HISTORIC RATE.

AND I THINK WITH THE INCREASES OF BOUNCED INCREASE FROM 2.5, SIX TO 4% LOOKING AT 5,000 FTES, THAT WOULD BE DISPLACED.

NEXT SLIDE PLEASE.

SO HERE'S A TEN-YEAR FORECAST, UH, BASED ON OUR CURRENT SPACE AND THEN KIND OF GROWTH PROJECTIONS.

I MENTIONED EARLIER, THE FACILITY, UH, PERFORMANCE SPECIFICATIONS.

UH, ONE OF THE, TO POINT OUT TO YOU, UH, THE CURRENT SPACE USE IS BASED ON A ASSUMPTION OF FUNERAL 91 SQUARE FEET PER FTE, UH, AS A RESULT OF THAT, THOSE SPECS THAT WE ARRIVED AT, UM, YOU KNOW, THAT NOW, SO THAT WE CAN TRANSITION THOSE FOLKS INTO MORE EFFICIENT SPACE AND THE STRENGTH IS THE FOOTPRINT FOR EACH FTE.

AND SO LOW WOULD ACTUALLY BE A COMPRESSION, UH, UH, OUR, OUR LEADS, UH, IN THE FUTURE, UH, BASED ON THE 2.5, SIX GROWTH OR 4% GROWTH.

UM, AND YOU'LL SEE THE NUMBERS THERE, UM, THE BASE SPACE REQUIREMENT AND KIND OF THE GROWTH PROJECTIONS, GETTING THAT DIP FROM A 1.3 MILLION TO 1.1 BECAUSE OF THE MORE EFFICIENT SPACE.

AND THEN ALSO THE LINE DOWN FROM THAT IS IF YOU ALSO, UH, INJECT A 25% TELE-WORK COMPONENT INTO THAT FURTHER COMPRESSION IN THOSE NUMBERS, UH, AS FAR AS THE TELE-WORK, UM, STUDY, UH, IT DID EXCLUDE, UH, APD, UM, WHO'S, UH, THE MISSION DOES NOT LEND ITSELF WELL, UH, TO TELEWORKING OR WORKING FROM HOME.

WE ALSO EXCLUDE CTM THEIR, UH, THEIR MISSION, UM, VERY WELL LENDS ITSELF TO, UH, TELEWORKING MORE COMPOSED.

SO THOSE WERE OUTLIERS.

WE EXCLUDED THEM.

UM, AND THESE ARE THE NUMBERS WE ARRIVED AT NEXT SLIDE, PLEASE.

SO THIS IS JUST A LITTLE GRAPHIC TO KIND OF, UH, MAKE THE POINT.

UH, THE CITY SPENDS APPROXIMATELY $23 MILLION A YEAR AND LEASES.

AND SO, UM, IT'S BASICALLY TWICE THE COST, UH, TO HAVE

[00:50:01]

AN FTE LEASED SPACE VERSUS OWN SPACE.

UM, AND FOR THAT REASON, IT'S JUST MORE EFFICIENT DOWN ON THE SPACE YOU'RE IN.

AND SO YOU'LL SEE HERE A 30 YEAR PROJECTION, UH, ASSUMING A FEW HUNDRED THOUSAND SQUARE FOOT ADMIN OFFICE SPACE BUILT TO SUIT, UM, 1,220 FTES.

AND, UM, SO YOU HAD A 30 YEAR AVERAGE.

I DIDN'T WALK AND SEE COST, UM, ALMOST DOUBLE OVER THAT TIME.

UM, AND THE TOTALS, AGAIN, 373 MILLION VERSUS 704 MILLION.

SO THE NET PRESENT VALUE OF THAT, THE SAVINGS $170 MILLION.

SO IT'S REAL MONEY.

NEXT SLIDE PLEASE.

AND SO THIS IS A GRAPHIC KIND OF JUST SHOWING, UH, SHOWING THE MISSION, WHAT WE'RE TRYING TO ACCOMPLISH HERE.

THE, UH, THE TOP YELLOW LINE THERE SHOWING OUR TOTAL SPACE NEEDS GETTING I'LL MAKE NOTE IN 2023 OF THE SLIDE DOWN THE DIP DOWN AGAIN, JUST TO KIND OF MOVING INTO MORE EFFICIENT SPACE AND ALSO INTRODUCING A TELEWORK COMPONENT TO IT.

UM, THE RED LINE IS THAT THE, THE SIGNAL SPACE WE'D LIKE TO BRING ONLINE, AND THEN, UH, THE, UH, BOTTOM LINE, THE BLUE LINE, THERE IS THE LEAST SPACE THING YOU'LL SEE HERE IN 20 23, 24 ISH, THAT GLIDE PATH DOWN AS WE HOPEFULLY EXIT AS MUCH LEAVE SPACE AS POSSIBLE.

WE'LL NEVER BE ABLE TO FULLY GET RID OF THE SPACE, BUT, UM, THE GOAL IS TO GET OUT OF IT AS MUCH AS WE CAN.

I THINK WITH THAT NEXT SLIDE, PLEASE I'LL TURN IT OVER TO MY COLLEAGUE, DARRYL LIVING SERVICES.

THANKS, MICHAEL.

UM, UH, THE NEXT COUPLE OF SLIDES, WE'LL TALK ABOUT TELEWORKING AND JUST THE IMPACT IT HAS, UH, ON OUR WORKFORCE AT THIS POINT NEXT, A GREAT, UH, SO WE DID A SURVEY WITH, UH, THE CVRE AND WE SURVEYED JUST SUPERVISORS, 46 DEPARTMENT HEADS, AND HERE'S COME TO SOME OF THE HIGHLIGHTS THAT CAME OUT OF THAT.

UM, WE ASKED THEM ABOUT, UH, TELEWORKING, UH, IS IT SUCCESSFUL? 76% SAID IT WAS THAT THEY EVEN SAID THAT 91% SAID THAT IT WAS EITHER IMPROVED OR, OR MAINTAIN, MAINTAIN, UH, THE SAME PRODUCTIVITY.

SO THAT THAT'S PRETTY GOOD.

UM, I THINK WHAT THE REAL TAKEAWAY FROM THIS IS TELEWORKING IS GOING TO BE WAS FOR AWHILE.

THE WORKFORCE THAT WE WERE IN BEFORE THIS, BEFORE THE PANDEMIC IS GONE, WE WILL ALWAYS HAVE A HYBRID.

AND FOR US, AS IT STILL KEEPS EVOLVING, WE NEED TO KIND OF LOOK AT WHAT DOES THAT LOOK LIKE FOR THE CITY OF AUSTIN, THE NEXT LIGHT.

UH, AND HERE'S SOME, UH, SOME KIND OF LIKE THE FINAL TAKEAWAYS.

UM, WE KNOW WHERE THEY'RE GOING TO AT LEAST HAVE 20 TO 30% FTES TELEWORKING ON A ROTATING BASIS.

UM, ALSO THE OFFICERS ARE A CRITICAL TOOL IN A TIGHT TALENT MARKET.

SO WITH THE TALENT LOOKING FOR TALENT AND THINGS LIKE THAT OFFICER'S WILL PLAY A MAJOR ROLE IN.

SO WILL TELEWORKING.

I THINK FOR US, THE CENTRALIZATION OF TELEWORKING POLICY IS GOING TO BE A KEY AS WE MOVE FORWARD.

UM, AS YOU KNOW, TRAVIS COUNTY IS KIND OF HAVE, HAS THEIR PLAN OF WHAT, WHAT THAT'S GONNA LOOK LIKE WHEN YOU'RE 75% NATURAL, THAT'S WHAT WE'RE LOOKING FOR, BUT AT LEAST IF WE HAVE A CENTRALIZED TELEWORKING POLICY, WE CAN HAVE A BENCHMARK OR BASIS TO KIND OF WORK THROUGH, YOU KNOW, WHAT WE CAN DO FOR THEM, A CITY OF STATIC OR HIGH INDEX, UM, UH, PROCESS WHAT OUR FACILITY PLANNING IS GOING TO LOOK LIKE, AND THEN HOW FLEXIBLE WE CAN BE FROM A DEPARTMENTAL STAGE, UM, AND ALLOWING A DEPARTMENT LEADERSHIP TO KIND OF, KIND OF DICTATE WHAT THEY NEED TO DO FROM A WORKFORCE PERSPECTIVE.

ONCE WE GET THAT CENTRALIZED TELEWORKING POLICY IN PLACE, NEXT LIGHT, HERE'S THIS, UH, JUST PULL SOMETHING OUT TO KIND OF GIVE YOU AN IDEA OF WHAT OTHER OTHERS ARE DOING.

AND THEN I'LL JUST HIGHLIGHT A FEW OF THEM.

GOOGLE PLANS ON A REOPENING AND OCTOBER, THEY CHANGED THEIR PLAN FROM REOPENING IN OCTOBER, 2021 TO JANUARY, 2022.

UH, BUT THEY STILL SEE 20% OF THE WORKFORCE, UH, REMAINING REMOTE, UH, NEW YORK CITY MUNICIPALITIES REQUIRED ALL STAFF TO, TO RETURN TO WORK AS A 13 SEPTEMBER.

UH, AND THEN JUST LOOKING OVER AT MICROSOFT, 80% OF THEIR WORKFORCE WANTS TO CONTINUE WORKING REMOTELY.

SO THEY'RE THE BEST, UH, OPINIONS ON WHAT THAT LOOKS LIKE, UM, ACROSS THE NATION.

NEXT SLIDE.

NEXT SLIDE PLEASE.

OKAY.

NOW WE'RE GOING TO LOOK AT SOME OF THE FACILITIES, UH, THAT ARE, THAT ARE IN PLAY HERE.

UM, JUST WANT TO TALK TO YOU ABOUT AUSTIN ENERGY SERVICE CENTER RIGHT NOW.

THAT'S, THAT'S ONE OF THE ACTIVE FACILITIES THAT WE HAVE WORKING RIGHT NOW.

UM, JUST GO THROUGH THE RFP REQUIREMENTS, 130,000 SQUARE FEET OF WAREHOUSE SPACE, 20,000 FEET OF EXPANSION, UH, 15,000 FEET OF OFFICE SPACE AND A 15,000 SQUARE FEET OF EXPANSION OPTIONS.

UM, THIS, THIS, UH, I THINK MICHAEL SAID THIS EARLIER, THIS, THIS SERVICE CENTER WILL ALLOW FOR THREE DIFFERENT FACILITIES, UH, TO, TO CONSOLIDATE THREE DIFFERENT FACILITIES,

[00:55:02]

UH, FOR AUSTIN ENERGY AND THE, UH, ENA THE EXCLUSIVE NEGOTIATION AND AGREEMENT HAS, WILL BE SIGNED IF IT HASN'T BEEN SIGNED, IT SHOULD BE SIGNED THIS WEEKEND, I THINK.

AND WE CAN, ANDY CAN ATTEST TO THAT.

THEN AFTER THAT, UH, WE ANTICIPATE THE COUNCIL REQUEST FOR NEGOTIATION AND EXECUTION, UH, IN NOVEMBER 21 AND ASHLEY FOR THIS FACILITY TO BE COMPLETED, UH, IN, IN 2022, DECEMBER, 2022.

NEXT SLIDE.

SO PHOEBE ARI DID A COMPREHENSIVE STUDY ON SEVERAL FACILITIES WITH, IN A CITY OF BOSTON, AND THEY DETERMINE WHETHER IT SHOULD BE RENOVATED, WHETHER IT SHOULD BE REDEVELOPED, WHETHER WE SHOULD JUST REPURPOSE IT OR, OR, OR, OR CARRY DOWN TO START SOMETHING ELSE.

AND ONE OF THOSE FACILITY WITH ONE TEXAS CENTER AND THE RECOMMENDATION WAS THAT WE REDEVELOP THIS, THIS, THIS, UH, THIS BUILDING, UH, INSTEAD OF RENOVATING NEXT SLIDE.

AND THAT RECOMMENDATION HERE IS JUST WHAT WE'VE KIND OF SELECTED FOR THAT, UH, IS IT IS TWO TOWERS AND A TOWER FOR AFFORDABLE HOUSING.

IT IS CENTRALLY LOCATED WITH THE, SOME FEEDBACK FROM SOME DEPARTMENT HEADS IT'LL CHANGE THE CAPACITY FOR ONE TEXAS SENATOR FROM 900 TO ALMOST 2000 FTES.

AND IT IS, WE UNDERSTAND THAT IS IT IS IN THE SOUTH CENTRAL, A WATERFRONT DISTRICT, AND WE'VE HAD CONVERSATIONS, UH, UM, WITH THE EDD AND OTHERS ABOUT HOW WE CAN WORK TOGETHER TO, TO HOPEFULLY TO HAVE THIS INTEGRATED INTO THAT, AND WE WILL CONTINUE TO DO SO, BUT I THINK FOR ONE TEXAS CENTER WAS IMPORTANT.

IT IS SOMEBODY SAID WAS THE LINCHPIN IS ACTUALLY THE TRIGGER THAT ONCE IF WE CAN GET THIS DONE, IT DOESN'T SOLVE OUR LEASING PROBLEM PROBLEM, BUT IT DEFINITELY PUTS A SIGNIFICANT IMPACT TO THAT LOSING PROBLEM, UH, TO WHERE WE CAN GET OUT OF A LOT OF LEASES, GET INTO OWN PROPERTY, WHICH IS A DIRECTION FROM THE COUNCIL, NEXT SLIDE.

OR THE NEXT BUILDING THAT WE LOOKED AT IS, IS THE AUSTIN POLICE HEADQUARTERS.

UH, WE KNOW IT'S, UH, JUST OBVIOUSLY OBSOLETE AT THIS POINT.

UH, IT ALSO HAD THERE, WE ALSO HAD TO RESCUE IN FROM CASA TO, TO, TO, TO RELOCATE IT.

SO WE'RE LOOKING AT THE, UH, RUTHERFORD LANE CAMPUS TO MAYBE, UH, RENOVATE OR, OR REDEVELOP.

UM, THERE ARE PROGRAMMING PRO PROCESSES.

THAT'LL START HAPPENING WITH, UH, APD AND MID, MID OCTOBER.

I THINK IT'S THE 19TH AND 20TH OCTOBER WITH CBR H THEY KIND OF LOOK AT WHAT'S THE BEST FIT FOR THEM.

UM, BUT AGAIN, THIS IS ANOTHER PLACE THAT WE CAN INCREASE THAT CAPACITY, UH, FROM EIGHT, 700, UH, TO, TO OVER 1100 PEOPLE THERE.

OKAY.

AND WE CAN PUT A SIGNIFICANT PART OF AP HEADQUARTERS, OUR AP, UM, YEAH, AP HEADQUARTERS RIGHT DOWN THERE IN RLC.

OKAY.

SIX, IT CAN BE A SIGNIFICANT IMPACT.

AND WHAT MAYBE HAD HAPPENED IS IT COULD BE A PUBLIC SAFETY OF MAYBE WE NEED FIRE, UH, FIRE DOWN COUNTY EMS DOWN THERE.

SO I THINK HE COULD DO, WE NEED TO LOOK AT IT FROM A, FROM A HOLISTIC PERSPECTIVE WHEN IT COMES TO PUBLIC SAFETY HEADQUARTERS NEXT.

ALL RIGHT.

SO THIS NEXT SLIDE IS ABOUT A CITY AUSTIN SERVICING IT AND WAREHOUSES, AND, AND THIS WAS PRETTY PASSIONATE FOR ME AND THE SERVICE CENTERS RIGHT NOW, ESPECIALLY WHEN YOU LOOK AT FLEET AND AUSTIN RESOURCE RECOVERY, UH, THEY'RE CALLED LADY KIT LOCATED IN WHAT A LOT OF OTHER IN, IN SOME OF THOSE LOCATIONS ARE, ARE JUST NOT GOOD LOCATIONS FOR, FOR EMPLOYEES TO BE WORKING AT.

WHEN WE TALK ABOUT RETAIN AND RECRUITING, THIS IS GOING TO BE A SIGNIFICANT IMPACT FOR US, RIGHT? SOME OF THE AREAS THAT THESE GUYS WORKING IN ARE THESE PEOPLE THAT NEED TO BE IN EMPLOYEES THAT ARE WORKING.

AND ESPECIALLY WHEN IT COMES TO, UM, THE FLEET SIDE AND ARR, WE'RE LOOKING AT PLACES THAT, YOU KNOW, NO CLIMATE CONTROL, THERE'S NO AIR, THERE'S NO HEAT.

SO THEY'RE WORKING IN VERY ARDUOUS CONDITIONS.

UM, AND THEN THERE'S NO SPACE BECAUSE THEY'RE IN TIGHT SPACES.

SO THE PROCESSES TO BE MORE EFFICIENT, IT'S AN INABILITY FOR THAT.

AND THEN FOR THE NEXT PIECE, YOU KNOW, THESE B THESE ARE FRONTLINE EMPLOYEES, AND THESE EMPLOYEES ENSURE THAT POLICE VEHICLES ARE RUNNING OUR DAILY VEHICLES THAT BSD EVEN USES.

THEY'RE RUNNING, UM, FIRE DEPARTMENT VEHICLE, THEY'RE RUNNING.

THESE ARE THESE, THAT'S WHAT THESE GUYS DO.

THEY ACTUALLY ARE THE HEARTBEAT OF THE CITY.

AND IT'S IMPORTANT THAT WE NEED LOOKING AT 50 SERVICE CENTERS AND HOW WE CAN IMPROVE THE SERVICE CENTERS, UH, FOR THE STATE.

RIGHT.

UH, WE'RE LOOKING

[01:00:01]

AT SOME, SOME, SOME, MAYBE SOME MULTI MULTI-SERVICE SERVICE CENTERS IN DIFFERENT LOCATIONS, DEER CALL AFRICAN WAY THROUGHOUT THE CITY.

AND I THINK IT'S VERY IMPORTANT THAT WE LOOK AT THAT, AND IT'S, IT'S SOMETHING THAT WE NEED TO DO NOW, BECAUSE IF WE DON'T, UM, AND WE'RE GOING TO BE LOOKING AT SOMETHING LIKE THAT FOR FIVE OR 10 YEARS, BECAUSE AS THE CITY GROWS, SO WILL THE EMPLOYEES GROW.

SO WILL THE DEMAND FOR VEHICLES, WHETHER THEY'RE ELECTRIC, WHETHER THEY'RE GAS, BUT IT'S IMPORTANT THAT WE START LOOKING AT THIS NOW, AND WE DON'T LOOK AT HOW WOULD YOU FIX IT TODAY? HOW ARE WE GOING TO FIX THIS FOR THE FUTURE FOR THE NEXT FIVE TO 10 YEARS? BECAUSE IT IS SOMETHING THAT WE JUST CAN'T DO NOTHING WRONG.

WE HAVE TO DO SOMETHING ALONG WITH THAT.

WHAT WE THOUGHT OUT SINCE WE STARTED TALKING ABOUT THIS, IS THERE A LOT OF, THERE'S A NEED FOR WAREHOUSE SPACE? SO WE'RE JUST GOING TO START LOOKING AT, AT THE WAREHOUSE SPACE AND MAYBE LOOKING AT WAREHOUSES THAT WE CAN ALSO PUT SOME RESILIENCY HUBS IN THERE, IF THEY CAN USE THEM FOR WHEN WE HAVE THESE EMERGENCIES LIKE YURI, THEY JUST OCCURRED BECAUSE THAT'S THE KIND OF SPACE THAT WE NEED TO HAVE.

WE MAY NOT USE IT ALL THE TIME, BUT IT NEEDS TO BE AVAILABLE WHEN THOSE THINGS HAPPEN.

SO THESE ARE TWO IMPORTANT PIECES THAT I THINK ARE VERY, IT'S GOING TO BE IMPACTFUL TO THE CITY AS WE MOVE FORWARD, ESPECIALLY WHEN IT'S THE DAY-TO-DAY OPERATIONS OF HOW THE CITY RUNS.

NEXT SLIDE, PLEASE, JUST KIND OF SPEC BOARD OR WHERE WE'RE AT.

UM, THE AHE WAREHOUSE, UH, OFTEN ENERGY WAREHOUSE IT'S UNDERWAY RIGHT NOW.

THEY'RE WORKING AT JOHNNY MORRIS WAREHOUSE AND SERVICE CENTER.

THAT'S AR AND FLEET.

THAT'S SOMETHING THAT THAT'S, THAT'S, UH, UH, IN THE WORKS I ONE TEXAS CENTER WE'D LIKE TO GET THAT, UH, MOVING QUICKLY.

UH, CAUSE I SAY, I THINK IT'S GOING TO BE A REAL TRIGGER AND A LINCHPIN TO THE SUCCESSES OF THE CITY FROM THIS POINT ON WHEN IT COMES TO FACILITY AND BUILDINGS, UH, ROUGH FOR LANE, UM, FOR APD, WE'RE GOING TO START WORKING THAT WITH CVRE OR OUR PARTNER, UH, IN MID-OCTOBER AND THEN THE NEW SERVICE CENTERS.

WE ARE STARTING TO GET THAT MOVING, BUT IT'S GOTTA BE IMPORTANT THAT WE GET SOMETHING DONE FOR THE SERVICE CENTERS, BECAUSE THERE WE'VE GOT TO IMPROVE THOSE AREAS FOR THE FRONT LINE EMPLOYEES, BECAUSE THAT'S, THAT'S GOING TO BE A HUGE RETAINING PIECE, ESPECIALLY WITH ALL THESE, YOU KNOW, THE, THE, THE TESLAS AND AMAZONS AND THE APPLES THAT ARE COMING, UH, I'M WORKING FOR THE CITY NEEDS TO BE, HEY, THIS IS A GREAT FACILITY, AND I'M GOING TO STICK HERE FOR THAT.

RIGHT.

UM, I THINK IT'S A, IT'S A, IT'S A GOOD OPPORTUNITY FOR US TO KIND OF STICK TO THE VALUES THAT, THAT WE SAY WE WANT FOR