Apr 27, 2022 Audit and Finance Committee

THANK YOU FOR JOINING US.

UM, OKAY, SO THE MINUTES ARE APPROVED UNANIMOUSLY WITH THE FOUR OF US WHO ARE HERE.

UM, THIS MORNING, NEXT ITEM UP IS ITEMS TWO, WHICH IS THE LOBBYIST COMPLIANCE.

AND I BELIEVE WE ARE GOING TO HEAR FROM THE AUDITOR'S OFFICE.

OH, I'M SORRY.

WE HAD NO ONE SIGNED UP AS OF 9:00 AM IS OKAY.

UH, LET ME JUST CLARIFY THIS WITH THE CLERK, BECAUSE I WASN'T GIVEN THAT INFORMATION.

MR. ROBINSON, SORRY.

UM, THANK YOU, MR. ALMOND, YOU CAN GO AHEAD AND IF FOLKS CAN MAKE SURE THAT I KNOW THAT IN THE FUTURE, IF IT'S AT THE LAST MINUTE, UM, THAT WOULD BE GREAT.

[Public Communication: General]

NOT YOU MR. ROBBINS, BUT THE STAFF.

IN SAN ANTONIO AND SACRAMENTO.

GO AHEAD, MR. ROBINS, YOU HAVE THREE MINUTES COUNSEL IN LATE MARCH, A COLUMN RAN IN THE AUSTIN AMERICAN STATESMAN POINTING OUT THAT INFORMATION RELATED TO UNDESERVING PARTICIPANTS IN AUSTIN'S CUSTOMER ASSISTANCE PROGRAM WAS NOW BEING HIDDEN SHORTLY AFTER IT WAS PUBLISHED.

I RECEIVED AN EMAIL FROM AN AUSTIN ENERGY CUSTOMER ECHOING MY RESEARCH, AND I WANT TO READ YOU PART OF IT.

QUOTE, THIS PAST WEEK I RECEIVED A LETTER FROM THE CITY OF BOSTON INFORMING ME THAT I'VE BEEN ENROLLED IN THE PROGRAM BECAUSE I RECEIVE OR SOMEONE IN MY HOUSEHOLD RECEIVES BENEFITS FROM ONE OF THE QUALIFYING PROGRAMS. I DO NOT RECEIVE ANY TYPE OF PUBLIC ASSISTANCE NOR DOES MY HUSBAND, THE ONLY OTHER HOUSEHOLD MEMBER, OUR INCOME ALSO FAR EXCEEDS THE AMOUNT THE CITY SUPPOSEDLY CONSIDERS ELO INCOME.

I SUSPECT THE CITY OF AUSTIN CROSS MATCHES THEIR CUSTOMERS WITH DATA FROM TEXAS HEALTH AND HUMAN SERVICES COMMISSION TO IDENTIFY MEDICAID, CHIP SSI, ET CETERA, RECIPIENTS.

I AM A QUOTE AUTHORIZED REPRESENTATIVE UNQUOTE FOR MY BROTHER WHO LIVES IN ANOTHER CITY.

AND WHO DO, WHO DOES NOT RECEIPT AND SHAMIE WHO DOES RECEIVE PUBLIC ASSISTANCE AND AUTHORIZED REPRESENTATIVES SIMPLY ASSIST SOMEONE IN APPLYING FOR BENEFITS AND SHOULD NOT BE INCLUDED IN TRANSMITTED DATA.

THE CITY USES TO IDENTIFY THEIR IDENTIFY BENEFICIARIES OF PUBLIC ASSISTANCE.

THIS SOUNDS LIKE A SYSTEMATIC PROBLEM THAT SHOULD BE FIXED TO ENSURE ASSISTANCE IS TARGETED TO PEOPLE WHO REALLY NEED IT.

I'LL STOP THE QUOTE COUNSEL, HOW MANY HUNDREDS OR THOUSANDS OF CAP ENROLLEES ARE IN A SIMILAR SITUATION? AUTOMATIC ENROLLMENT IS NOT SOME FOOLPROOF GOLD STANDARD FOR SOCIAL SERVICE PROGRAMS. IT IS A TOOL THAT CAN WASTE CONSIDERABLE SUMS OF MONEY IF NOT PROPERLY USED.

AND IN THIS CASE AUSTIN'S CUSTOMER ASSISTANCE PROGRAM, UH, IN THE CASE OF AUSTIN'S CAP PROGRAM, IT HAS PROBABLY WASTED MILLIONS OF DOLLARS OVER THE COURSE OF YEARS THAT COULD HAVE AIDED PEOPLE WHO REALLY NEEDED IT.

I AM AGAIN ASKING YOU TO CHANGE THE CAP ENROLLMENT SYSTEM TO ONE THAT IS COMPLETELY INCOME VERIFIED.

THIS IS WHAT IS DONE IN LARGE PUBLIC UTILITY ASSISTANCE PROGRAMS RUN

[00:05:01]

BOTH OF THESE PROGRAMS HAVE ROBUST PARTICIPATION COMPARABLE TO AUSTIN.

I'LL CONCLUDE BY SAYING YOU HAVE AN AUDIT DEPARTMENT, YOU HAVE SMART AIDS IN YOUR OFFICES.

ASK THEM TO VERIFY WHAT I JUST TOLD YOU ABOUT SAN ANTONIO AND SACRAMENTO.

YOU'LL FIND THAT I'M CORRECT.

WE'LL NOW CALL UP ITEM NUMBER TWO, THE LOBBYISTS COMPLAINTS SO, UH, THIS IS REQUIRED UNDER CITY CODE AND TODAY, UH, PATRICK JOHNSON MANAGED THIS WORK AND ANDREW SCOGGIN WILL BE PRESENTING TO YOU GUYS.

THANK YOU, MR. ROBBINS.

UM,

[2. Discussion and possible action regarding the lobbyist compliance audit]

SO I'LL MOVE OUT OF THE WAY UH, HI, GOOD MORNING.

UM, SO AS COREY MENTIONED, MY NAME IS ANDREW SCOGGIN AND I WAS THE AUDITOR IN CHARGE OF THIS PROJECT.

UH, PATRICK IS HERE WITH US TOO, AS OUR STAFF FROM THE LAW DEPARTMENT, UH, IN THE CITY CLERK'S OFFICE.

UM, SO FIRST, UH, ON THE NEXT SLIDE, PLEASE, UH, SOME BACKGROUND ON OUR WORK, UH, IN THIS AREA.

SO AS COREY MENTIONED, A CITY CODE REQUIRES THAT OUR OFFICE TO REGULAR AUDITS CHECKING THE COMPLIANCE OF LOBBYISTS, UH, REGISTRATION ACTIVITY FILINGS.

THIS IS THE THIRD TIME WE'VE DONE, UH, ONE OF THESE AUDITS.

AND THE LAST TIME THAT WE DID THIS, WE PROPOSE DOING IT AGAIN WITHIN A YEAR AFTER A NEW ELECTRONIC ELECTRONIC FILING SYSTEM, UH, WAS IMPLEMENTED, UH, IN THAT HAPPENED LAST SUMMER.

UH, THIS IS ALSO, UH, THE FIRST TIME THAT WE'VE DONE THIS AUDIT SINCE THE PANDEMIC.

UH, SO WE ALSO WANTED TO LOOK AT HOW CITY CODE HANDLES THE REPORTING, UH, VIRTUAL MEETINGS BY LOBBYISTS.

UH, SO ON THE NEXT SLIDE, PLEASE, UH, WE HAD ONE FINDING IN OUR REPORT, UH, AS WELL AS AN ADDITIONAL OBSERVATION THAT I'LL DISCUSS LATER ON VIRTUAL MEETINGS.

OUR FINDING HERE, UH, IS ON THE COMPLIANCE CHECKING THAT'S REQUIRED BY CODE.

UH, AND AS IT SAYS HERE, UH, SAMPLED LLAMBIAS FILINGS WERE LARGELY COMPLIANT WITH CITY CODE CITY CODE REQUIREMENTS.

UH, THOUGH WE IDENTIFY AN ISSUE RELATED TO LATE FEES FOR ONE LOBBYIST.

UH, THIS PARTICULAR LOBBYIST HAD FILED HER REPORT 44 DAYS LATE AND SHOULD HAVE BEEN ASSIGNED FIVE LATE FEES, BUT WAS ONLY GIVEN THREE, UH, CITY CLERK'S OFFICE STAFF ATTRIBUTED THIS TO TECHNICAL ISSUES THAT PREVENTED THEM FROM ISSUING THE CORRECT NUMBER.

STAFF ALSO SAID THAT, UH, LATE FEES ARE ISSUED MANUALLY AND THAT THEY WILL CONTINUE TO DO THIS TO AVOID TECHNICAL ISSUES WITH THE FILING SYSTEM.

UH, WE PLAN TO FOLLOW UP ON THIS, UH, IN ANY FUTURE, UH, LOBBYIST AUDIT AND THEN ON THE NEXT SLIDE.

UM, SO WE ALSO HAD AN ADDITIONAL OBSERVATION, UH, WHICH HERE ON THE SIDE, UH, SAYS THAT AUSTIN CITY CODE ONLY REQUIRES THAT LOBBYIST REPORT IN-PERSON MEETINGS WITH CITY OFFICIALS AND ALSO THE CITY IS NOT USING CONSISTENT METHODS TO TRACK LOBBYISTS TO MEETINGS.

UM, SO IF YOU'LL GO INTO THE, UH, THE NEXT SLIDE, PLEASE.

UH, SO THIS SECTION OF CITY CODE ADDRESSES THE REQUIREMENT THAT LOBBYISTS REPORT MEETINGS WITH CITY OFFICIALS, UH, TO READ ONLY A PORTION THAT'S ON HERE, A PERSON WHO COMMUNICATES IN PERSON WITH THE CITY OFFICIAL FOR COMPENSATION DURING A SCHEDULED MEETING, SHALL DISCLOSE IN WRITING TO THE CITY DEPARTMENT OR OFFICE.

AND ACCORDING TO A LOT DEPARTMENT STAFF, THIS MEANS THAT CODE DOES NOT REQUIRE LOBBYISTS TO REPORT VIRTUAL MEETINGS.

UH, NEXT SLIDE, PLEASE.

UH, WE WANTED TO LEARN WHAT THE CITY WAS DOING TO COLLECT INFORMATION ON VIRTUAL MEETINGS, WITHOUT THERE BEING A REPORTING REQUIREMENT FOR LOBBYISTS.

UH, WE REACHED OUT TO THREE DEPARTMENTS AND ALSO RECEIVED INFORMATION FROM NINE COUNCIL OFFICES.

WE FOUND THAT THERE ISN'T ONE, THAT THERE IS NOT ONE CENTRAL STRATEGY BEING USED.

UH, SOME ARE USING AN ELECTRONIC FORM, UH, LIKE THE ONE SHOWN ON THIS SLIDE HERE ON THE BOTTOM, RIGHT? UH, AND THIS IS ACCESSED THROUGH A LINK IN AN EMAIL SIGNATURE, UH, THAT'S, THAT'S SHOWN ABOVE THAT.

UH, SOME OFFICES WERE USING THEIR ELECTRONIC CALENDARS TO MAINTAIN INFORMATION ON VIRTUAL MEETINGS WITH LOBBYISTS.

OUR OFFICE HAS PREVIOUSLY HIGHLIGHTED HIGHLIGHTED OPPORTUNITIES FOR IMPROVING THE COLLECTION OF LOBBYISTS, MEANING INFORMATION.

IF IT WERE STORED IN A CENTRAL PLACE, LIKE AN ONLINE DATABASE, THIS WOULD ALLOW FOR BETTER ANALYSIS AND IMPROVE TRANSPARENCY.

[00:10:03]

UM, SO IN THE NEXT SLIDE, PLEASE, UH, WE ALSO LOOKED AT SOME OF AUSTIN'S PEERS TO GET A SENSE OF HOW THEY APPROACH THE REPORTING OF VIRTUAL MEETINGS BY LOBBYISTS DALLAS AND SAN ANTONIO BOTH REQUIRE THAT LOBBYISTS REPORT VIRTUAL MEETINGS, UH, BUT DO NOT REQUIRE SANE WHEN THEY TOOK PLACE.

UH, THE STATE OF TEXAS TREATS IN-PERSON AND VIRTUAL MEETINGS, THE SAME FOR REPORTING PURPOSES.

UM, BUT LOBBYISTS DO NOT HAVE TO REPORT, UH, MEETINGS AND LESS SPECIFIC SPENDING THRESHOLDS ARE MET.

AND IF AUSTIN WANTED TO REQUIRE THE REPORTING OF VIRTUAL MEETINGS, UH, THIS WOULD REQUIRE A CHANGE IN CITY CODE.

UH, SO IF YOU GO TO THE NEXT SLIDE, PLEASE, UH, WE DIDN'T DID NOT ISSUE ANY RECOMMENDATIONS, UH, AS PART OF OUR AUDITS.

UH, SO THAT'S THE END OF OUR PRESENTATION.

UM, BUT WE'RE HAPPY TO ANSWER ANY QUESTIONS.

UM, SO IT'S MY UNDERSTANDING THAT, UM, AS PART OF THE WORK THAT THE AUDITOR, UM, IS PUTTING TOGETHER FOR CITY COUNCIL, FOR HER ANNUAL PLAN, SHE'S INCLUDED A GOAL OF MOVING FORWARD WITH SOME CHANGES TO THE LOBBYIST, UM, PROCESS.

AND I KNOW THAT THE HOT, OUR VICE CHAIR COUNCIL MEMBER POOL, WHO WAS INSTRUMENTAL IN INSTITUTING THIS PROCESS IN THE FIRST PLACE, UM, SHE AND HER STAFF WILL BE WORKING WITH MS. STOKES ON THAT.

I THINK IT'S HELPFUL TO HAVE THAT, UM, HISTORY, UM, ENGAGED WITH THAT.

AND, AND CLEARLY ONE OF THE FIRST STEPS WOULD BE, UM, SOME SORT OF CHANGE RELATED TO, UM, THE VIRTUAL MEETINGS.

UH, YOU DIDN'T TALK ABOUT IT, BUT I'D ALSO LIKE US TO FIGURE OUT HOW WE, HOW WE GET AT THE FOLKS WHO ARE NOT REGISTERING TO LOBBY, UM, THE, THE SYSTEM RIGHT NOW, HAS YOU AUDITING THOSE WHO HAVE REGISTERED? UM, AND SO THERE'S A CHALLENGE ABOUT THOSE WHO HAVEN'T REGISTERED AND, AND HOW, HOW WE, HOW WE, UM, HANDLE THAT.

UM, AND IT MAY BE THAT WE NEED TO DO SOME OF THIS IN STAGES.

LIKE THERE MAY BE PIECES THAT TAKE A LONGER TIME AND WE MAY DECIDE WE WANT TO, UM, MAKE THE CHANGE FOR THE VIRTUAL MEETINGS, UH, SOONER COLLEAGUES.

DOES ANYONE HAVE ANY QUESTIONS OR OTHER COMMENTS COUNCIL MEMBER FINDS US AND THEN COUNCIL MEMBER TOVA YES.

I JUST HAD A QUICK QUESTION FOR THE STAFF THAT REPORTS, OR DOES THE, UM, ADMINISTERS THE LATE FEES MANUALLY.

HOW LONG DOES THAT TAKE ON AVERAGE? AND IS IT SOMETHING THAT THEY GO LIKE, DO THEY GET NOTIFIED THAT A REPORT WAS NOT SUBMITTED OR DO THEY HAVE TO GO IN AND TAKE A LOOK AT THE LIST AND CROSS CHECK TO SEE WHICH REPORTS WERE SUBMITTED? YEAH, SO I'M STANDING HERE FROM, FROM THE CLERK'S OFFICE AND, AND THEY, THEY MIGHT BE BETTER EQUIPPED TO, TO ANSWER, UM, THE SPECIFICS OF THAT QUESTION.

AND THEN, UM, ALSO RELATED HOW MUCH ARE THE LATE FEES? SO LATE, LATE FEES ARE $50.

UM, AND THEN EVERY 10 DAYS, UM, IF THEY'RE STILL LATE, ANOTHER $50 FEES ASSESSED, UM, AND IT'S UP TO A CUMULATIVE, UH, $500.

AND IS THAT PRETTY CONSISTENT WITH SAN ANTONIO AND OTHER CITIES? UM, THAT, THAT WASN'T SOMETHING THAT, THAT WE HAD LOOKED AT AS PART OF THIS AUDIT.

BECAUSE A MEMBER OF GOD, GOOD.

HI ERICA BRADY, DEPUTY CITY CLERK.

UM, THE LATE FEES ARE ISSUED, UH, THE VERY NEXT DAY AFTER, UM, UM, AFTER THE, THE, THE THEY'RE DUE.

SO, SO THE SYSTEM AUTOMATICALLY ISSUES, OR I GUESS YOU, YOU HAVE STAFF GOING IN AND, AND ADMINISTERING THE LATE FEES, RIGHT? SO WE ISSUE THE LATE FEES THROUGH THE E-FILING SYSTEM.

SORRY, WE, WE ACTUALLY HAVE LIKE THIS GLOBAL EVENT THAT TRACKS LIKE THE REPORTS THAT WE'RE MISSING.

SO THE NEXT DAY AFTER THIRD YEAR, WE DO, UM, LOOK AT THE LIST AND THAT AT THAT MOMENT WE ACTUALLY ISSUE THE LATE FEES.

THAT TECHNICAL ISSUES THAT WE HAD, UM, WAS WHEN WE WERE LAUNCHING THE VIOLENCE SYSTEM, UM, THIS IS SOMETHING THAT HAS BEEN ADDRESSED.

UM, SO FOR EXAMPLE, THIS TIME AROUND, WE HAVE ONE LOBBYIST THAT HAS NOT SUBMITTED THE REPORT YET.

THEY HAVE ALREADY RECEIVED TWO LATE FEES.

UM, THE LAST, THE SECOND LATE FEE WAS ACTUALLY DUE, UM, BECAUSE THIS CALENDAR, UM, FACE INSTEAD OF LIKE BUSINESS DAYS, WE ACTUALLY WENT IN ON SATURDAY AND WE ISSUE THE LATE FEE.

UM, SO THAT WAY WE COULD ACTUALLY DO IT.

YES.

YOU WERE AWARE THAT COUNCIL MEMBER POOL MIGHT BE INTERESTED IN DOING SO.

SO I THINK IT WOULD BE WISE TO, TO CLOSE THAT GAP AS SOON AS POSSIBLE.

AND SO I, I HOPE, UM, MAYOR PRO TEM, IT SOUNDED LIKE

[00:15:01]

AND I THINK THAT'S GREAT.

UM, THIS IS SOMETHING WE COULD ACCOMPLISH IN, IN ONE COUNCIL MEETING.

IF, IF THE COUNCIL MEMBER WHO'S SPONSORING, IT JUST BRINGS FORWARD AN ORDINANCE CHANGE.

AND I WOULD SUGGEST THAT WE LEAVE IT TO THAT.

WE ALSO INCLUDE PHONE MEETINGS IF THEY'RE SCHEDULED MEETINGS, THAT'S, THAT'S BEEN KIND OF OUR PRACTICE IN MY OFFICE.

IF IT'S A SCHEDULED MEETING, I E NOT AN IMPROMPTU PHONE CALL.

UM, BUT IF IT'S A SCHEDULED MEETING, EITHER BY PHONE OR VIRTUAL, THAT WE'LL COLLECT, UM, THE LOBBYISTS INFORMATION.

AND SO I WOULD SUGGEST THAT WE, AGAIN, WE CLOSE THE LOOP ON BOTH OF THOSE AS SOON AS POSSIBLE, ESPECIALLY GIVEN THE NUMBER OF, OF, UM, VIRTUAL MEETINGS THAT WE'RE ALL NOW HAVING.

AND SO I WILL, I WILL REACH OUT TO COUNCIL MEMBER PAUL'S OFFICE AND SEE IF THAT'S WHAT HER INTENT IS.

UM, I AGREE WITH YOU THAT SOME OF THESE THINGS MAY TAKE A LITTLE BIT LONGER TO, TO FIX, BUT AGAIN, I THINK THAT'S A VERY QUICK FIX.

I DO LIKE THE IDEA AND I, OUR CITY CLERK RAISED THIS OF HAVING A DATABASE THAT'S MORE ACCESSIBLE AND EASIER TO SEARCH SO THAT THE PUBLIC REALLY CAN TELL, YOU KNOW, HOW OFTEN PARTICULAR LOBBYISTS ARE MEETING WITH COUNCIL.

I THINK THAT'S REALLY IN KEEPING WITH THE SPIRIT OF, OF THE LOBBYIST REGULATIONS.

AND, UH, LET'S SEE, THERE WAS ONE OTHER THING, UM, MIRROR PER TIME, YOU MENTIONED TRYING TO INCORPORATE FOLKS WHO REALLY SHOULD BE REGISTERED AS LOBBYISTS.

AND I GUESS I WOULD LIKE TO ASK OUR CITY AUDITOR WHAT YOU WOULD NEED, WHAT YOU WOULD NEED, UM, IN TERMS OF INFRASTRUCTURE OR DIRECTION FROM COUNTY TO DO THAT.

FOR EXAMPLE, IF WE, IF WE HAD INDIVIDUALS WHO WE BELIEVED OUGHT TO BE LOBBYISTS, YOU KNOW, COULD WE SEND THEM, COULD YOU SET UP A PROCESS OR WOULD IT BE MORE APPROPRIATE THROUGH THE CITY CLERK WHERE WE SET UP A PROCESS? I GUESS IT WOULD BE MORE APPROPRIATE THROUGH THE CITY CLERK WHERE WE SET UP A PROCESS WHERE COUNCIL OFFICES, OR MEMBERS OF THE PUBLIC COULD SAY, HEY, THIS, THIS INDIVIDUAL APPEARS REGULARLY ON BEHALF OF DIFFERENT, DIFFERENT DEVELOPERS AND REALLY SHOULD BE REGISTERED AS A LOBBYIST AND IS NOT, I THINK THAT'S THE, UM, I REALLY APPRECIATE THAT.

AND THAT'S BEEN SOMETHING WE'VE BEEN DEALING WITH IS, YOU KNOW, AS AUDITORS, WE DON'T JUST WANT TO AUDIT COMPLIANCE OF THE PEOPLE WHO ARE VOLUNTARILY COMPLIANT.

WE WANT TO KNOW WHO'S NOT VOLUNTARILY COMPLIANT.

I THINK THE CHALLENGE HAS BEEN THE WAY THAT IT'S TRACKED, YOU KNOW, SOMETIMES ON A PIECE OF PAPER, SOMETIMES ON INDIVIDUAL OFFICES CALENDARS, UM, SOME DEPARTMENTS ARE GETTING MORE SOPHISTICATED AS, AS THIS REQUIREMENT HAS GONE ON AND AS WE'VE TRANSITIONED TO A MORE VIRTUAL ENVIRONMENT.

SO I TH I THINK A CENTRALIZED SYSTEM, AND WE'VE MENTIONED THIS IN THE LAST COUPLE OF REPORTS, I THINK A CENTRALIZED SYSTEM WHERE THAT DATA IS AVAILABLE WOULD MAKE IT A LOT EASIER FOR US, UM, TO REALLY ANALYZE, YOU KNOW, WE HAVE INFORMATION ON WHO APPEARS REGULARLY IN FRONT OF COUNCIL, BUT WE DON'T HAVE SOMETHING TO COMPARE THAT TO.

AND SO THAT WOULD BE, THAT'S KIND OF THE MISSING PIECE IS, IS A CENTRALIZED TRACKING SYSTEM FOR COUNCIL OFFICES AND CITY DEPARTMENTS THAT INTERFACE REGULARLY, UM, WITH LOBBYISTS, I THINK THAT'S IMPORTANT, BUT WE ALSO HAVE, YOU KNOW, WE KNOW WHO APPEARS REGULARLY BEFORE COUNCIL AND WE CAN, OR PLANNING COMMISSION, AND WE CAN CROSS CHECK THAT WITH A LOBBYIST LIST AND THERE DEFINITELY ARE SOME GAPS.

AND SO WHEN THOSE GAPS ARE NOTED, WE NEED A PROCESS FOR BEING ABLE TO SAY, HEY, THIS INDIVIDUAL REALLY SHOULD BE REGISTERED.

I AGREE.

OR I'M NOT SURE TO WHOM I WOULD RAISE THAT.

AND WHETHER YOU NEED, WHETHER YOU OR THE CLERK NEEDS DIRECTION TO KIND OF SET UP A PROCESS WHERE WE, WHERE WE HAVE THE ABILITY TO DO THAT, TO HAVE SOME FOLLOW-UP WITH THAT INDIVIDUAL.

I THINK WE WERE JUST TALKING ABOUT THIS INTERNALLY, AND I THINK THE BEST WAY TO HANDLE THAT IS KIND OF A COMPLAINT BASIS.

SO IF SOMEBODY FEELS LIKE THERE'S A LOBBYIST AND THEY'RE NOT REGISTERED, THEY SHOULD SUBMIT THAT.

AND I THINK MY OFFICE, YOU KNOW, WE TRIAGED ALL SORTS OF THINGS THAT COME INTO US, UM, THROUGH OUR HOTLINE.

AND SO I THINK THAT'S A GREAT PLACE, EVEN IF IT'S NOT SOMETHING THAT WE WOULD HANDLE AS FRAUD, WASTE AND ABUSE, WHICH IS REALLY ARE, YOU KNOW, WHAT OUR, OUR HOTLINE IS DESIGNED FOR.

WE CAN STILL, UM, CREATE A PROCESS TO MAKE SURE THOSE THINGS END UP IN THE RIGHT PLACE AND THOSE FOLKS GET REGISTERED WELL.

THAT'S GREAT.

SO IT SOUNDS LIKE YOU DON'T NEED FURTHER DIRECTION TO BE ABLE TO DO THAT, THAT OUR EXISTING PROCESS ALLOWS FOR IT.

AND, AND IF MEMBERS OF THE PUBLIC OR MEMBERS OF COUNCIL, UM, ARE AWARE OF INDIVIDUALS WHO ARE NOT REGISTERED, WE CAN JUST, WE CAN SEND THOSE INDIVIDUALS NAMES ONTO YOU.

ABSOLUTELY WONDERFUL.

THANK YOU VERY MUCH.

I THINK THAT MIGHT NEED TO BE MADE MORE APPARENT TO FOLKS AND EVEN BE SHARED WITH THE COUNCIL OFFICES ABOUT HOW YOU DO THAT AND WHAT THAT, WHAT THE PROCESS IS.

IF YOU HAVE, IF YOU HAVE CONCERNS, AND I KNOW THAT WE'RE ALL DOING IT SLIGHTLY DIFFERENTLY, BUT YOU KNOW, LIKE WE'RE DOING IT ELECTRONICALLY.

AND, YOU KNOW, I DON'T, I DON'T KNOW IF IT'S A WHOLE ONE HAVEN'T EXAMINED IT ENOUGH TO KNOW IT'S ALL ONE SYSTEM WHERE IT'S ALL GOING INTO THE SAME PLACE IN THE SAME FORMAT OR NOT.

UM, IT SEEMS LIKE, YOU KNOW, YOU OUGHT TO BE ABLE TO,

[00:20:01]

TO AUTOMATE THAT FAIRLY, FAIRLY QUICKLY WITHOUT A HUGE, UM, EXPENSE, AT LEAST FOR THE COUNCIL OFFICES.

AND THEN OBVIOUSLY THE HOUSING AND PLANNING AND, AND SOME OTHER DEPARTMENTS ALSO REGULARLY, UM, ARE SUBJECT TO LOBBYISTS COMING.

RIGHT.

AND I WOULD SAY FROM MY OFFICE'S PERSPECTIVE, UM, WE THINK THAT THAT MAKES A LOT OF SENSE AND IT WOULD MAKE OUR JOB EASIER.

UM, IT'S PROBABLY NOT US TO IMPLEMENT THE SYSTEM, BUT THEN AT THE SAME TIME, WE DO HAVE THE COMPLAINT OPTION AVAILABLE.

SO IF YOU HAVE CONCERNS OR, OR ISSUES, UM, PLEASE SEND THEM TO US.

AND WE WILL, UH, DO SOME PROMOTING OF THAT OPTION WITH THE COUNCIL OFFICES AND THE KEY DEPARTMENT.

SO DO WE NEED TO TAKE ACTION TO ACCEPT THIS REPORT OR ANYTHING? UM, YOU CAN, BUT IT DOESN'T HAVE, SO IT IS NOT NECESSARILY.

SO THEN, UM, I DON'T THINK WE'LL TAKE A MOTION TO ACCEPT THE REPORT SINCE IT'S NOT NECESSARY.

UM, AND I WILL JUST REMIND FOLKS THAT, UM, THE VICE CHAIR POOL, UM, AND HER STAFF HAVE AGREED TO TAKE THE NEXT STEPS ON THIS, WORKING WITH THE AUDITOR.

AND I DON'T BELIEVE I JUST VOLUNTOLD HER.

I THINK, I THINK THAT I THINK THAT'S ACCURATE.

UM, OKAY.

SO THANK YOU VERY MUCH.

WE'LL TAKE UP ITEM THREE, WHICH IS DISCUSSION AND POSSIBLE ACTION REGARDING THE FISCAL YEAR 2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT AND SINGLE AUDIT REPORT BY DELOITTE AND TOUCHE.

UM, NOW

[3. Discussion and possible action regarding the Fiscal Year 2021 Annual Comprehensive Financial Report and Single Audit Report by Deloitte & Touche LLP, the City’s external auditor.]

AND WE WILL HEAR FROM MARIA, YOU, YOU, YOU GET, UM, WHO WILL OPEN THE ITEM AND I'M NOT SURE IF I GOT THAT RIGHT.

AND THEN DELOITTE WILL PRESENT.

GOOD MORNING, EVERYONE.

UM, CAN WE BRING UP THE PRESENTATION PLEASE COME RIGHT UP.

GOOD MORNING.

MAYOR PRO TEM AND COUNCIL MEMBERS.

UM, I'M MARIE MUKESH, THE CITY CONTROLLER.

I'M HERE WITH TRACY COOLEY AND CAMERON DECKER FROM DELOITTE AND TOUCHE, LLP.

THE CITY'S EXTERNAL AUDITOR TO PRESENT THE RESULTS OF THE FISCAL YEAR 2021 CONGRESS ANNUAL COMPREHENSIVE FINANCIAL REPORT, OR ACT FOR A LOT, ALONG WITH THE RESULTS OF THE FISCAL YEAR 2021 SINGLE AUDIT OR GRANT AUDIT, YOU WILL RECEIVE YOUR BOUND COPIES OF THE REPORTS DISCUSSED TODAY.

AS SOON AS THEY'RE PRINTED, IF WE CAN GO TO THE NEXT SLIDE, PLEASE, THE OXFORD REPORT WAS ISSUED ON MARCH 14TH, 2022.

IT IS AVAILABLE ONLINE AT AUSTIN FINANCE ONLINE.

THE WEB ADDRESS IS LISTED ON THIS SLIDE FOR THIS YEAR'S COVERS.

WE CHOSE TO HIGHLIGHT THE NEW AUSTIN FC STADIUM AND SOME OF THE NEW PARK OPENINGS, INCLUDING THE ALLIANCE CHILDREN'S GARDEN AND NEW WATERLOO PARK.

THE FINANCIAL SERVICES CONTROLLERS DIVISION IS RESPONSIBLE FOR THE PREPARATION OF THE CITY'S AQUIFER.

AND OUR TEAM WORKS CLOSELY WITH DELOITTE TO OBTAIN AN INDEPENDENT AUDIT OF THIS REPORT.

THE REQUIREMENTS FOR AN ANNUAL AUDIT ARE OUTLINED ON THIS SLIDE.

THE CITY IS IN COMPLIANCE WITH EACH OF THESE REQUIREMENTS, DELOITTE AND LLP IS AN INDEPENDENT CERTIFIED PUBLIC ACCOUNTING FIRM.

AND THIS IS THE FOURTH YEAR OF A FIVE-YEAR CONTRACT FOR AUDIT SERVICES.

THE ACURA WAS PUBLISHED ON MARCH 14TH, 2022, AND THIS IS AN ADVANCE OF THE REQUIRED SIX MONTH DEADLINE OF MARCH 31ST.

AND DELOITTE IS HERE TODAY, APRIL 27TH, WHICH IS 44 DAYS AFTER THE ISSUANCE OF THE EFFORT TO PRESENT THE RESULTS OF THE ANNUAL AUDIT.

THE SINGLE AUDIT COVERS THE CITY'S COMPLIANCE WITH FEDERAL AND STATE GRANT REQUIREMENTS.

THE SINGLE AUDIT REPORT WAS ISSUED ON MARCH 25TH, 2022, WHICH IS WELL IN ADVANCE OF THE REQUIRED JUNE 30TH DEADLINE.

WE DON'T PUBLISH THE SUPPORT ON OUR EXTERNAL WEBSITE.

HOWEVER, THE REPORT IS AVAILABLE UPON REQUEST.

AND AS MENTIONED EARLIER, EACH OF THE COMMITTEE MEMBERS WILL RECEIVE BOUND COPIES OF BOTH REPORTS DISCUSSED TODAY, AS SOON AS THEY'RE PRINTED.

THIS SLIDE LISTS THE REQUIREMENTS FOR WHEN AN ENTITY IS REQUIRED TO HAVE A SINGLE AUDIT OF ITS FEDERAL AND STATE AWARDS.

UM, BOTH UNDER FEDERAL AND STATE REGULATIONS, WE'RE REQUIRED TO HAVE A SINGLE AUDIT.

IF WE HAVE SPENT MORE THAN $750,000 ANNUALLY IN FEDERAL OR STATE FUNDS, THE FOCUS OF THE SINGLE AUDIT IS ON GRANT COMPLIANCE AND THE AUDIT MUST BE COMPLETED WITHIN NINE MONTHS OF FISCAL YEAR END OR JUNE 30TH.

[00:25:01]

UM, NEXT SLIDE, PLEASE.

FINALLY, I'D LIKE TO THINK, UM, THOSE LISTED ON THIS SLIDE FOR THEIR CONTRIBUTIONS TO THE EARLY COMPLETION OF THESE KEY FINANCIAL REPORTS, THE MAYOR COUNCIL MEMBERS, AND CITY MANAGEMENT FOR THEIR SUPPORT OF EXCELLENCE IN FINANCIAL MANAGEMENT CITY STAFF, ESPECIALLY THE CONTROLLERS TEAM FOR THEIR MANY HOURS OF DEDICATED SERVICE TOWARDS THE COMPLETION OF THESE REPORTS AND THE DELOITTE TEAM FOR THEIR PROFESSIONALISM AND THOROUGH MANNER IN WHICH THEY CONDUCTED THESE AUDITS.

UM, NEXT, I'M GOING TO HAND IT OVER TO TRACY AND CAMERON FROM THE LATE WE'LL TAKE OVER THE PRESENTATION, BUT I'M HERE TO ADDRESS ANY QUESTIONS WE HAVE FOLLOWING THE PRESENTATION.

SO IF WE CAN GO TO THE NEXT SLIDE, PLEASE.

THANK YOU, MARIA.

UM, GOOD MORNING TO MAYOR PRO TEMP AND COUNCIL MEMBERS.

MY NAME IS TRACY COOLEY AND I'M A MANAGING DIRECTOR AT DELOITTE LOCATED HERE IN AUSTIN, AND I'M RESPONSIBLE FOR THE SERVICES THAT WE PROVIDE TO THE CITY FROM AN AUDIT CAPACITY.

CAMERON DECKER WITH ME IS OUR SENIOR MANAGER, AND WE'RE VERY, VERY PLEASED TO BE HERE TO REPORT THE RESULTS OF THE FY 22 AUDITS THAT WE CONDUCTED.

UH, SO MAYBE FLIP TO TWO MORE SLIDES, PLEASE.

ONE MORE.

WHAT OUR AUDIT STEPS ARE.

SO ONE OF THE COVER, OUR RESPONSIBILITY AND REALLY THE SCOPE OF THE AUDIT FIRST, AND AS WE GO ALONG, PLEASE STOP US IF THERE ARE QUESTIONS AND WE'RE HAPPY TO TAKE THOSE AT THE END AS WELL.

SO OUR AUDIT OF THE 2021 FINANCIAL STATEMENTS THAT AQUIFER AS MARIA TALKED ABOUT, WE PERFORM THE AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS, AS WELL AS GOVERNMENT AUDITING STANDARDS.

AND THE REASON WE HAVE TO LAYER ON THE GOVERNMENT AUDITING STANDARDS RELATES TO THE FEDERAL AND STATE GRANT AUDITS THAT WE CONDUCT AS WELL.

SO ON THE APP FOR IT WAS AN UNMODIFIED OR CLEAN OPINION ON THE FINANCIAL STATEMENTS.

AND IF YOU LOOK AT OUR OPINION ON THE FINANCIAL STATEMENTS, WE DO REFERENCE OTHER AUDITORS THAT ARE AUDITING THE 80% IN COMPONENT UNITS.

SO THIS WOULD BE AC ABLE, AND THIS YEAR ATP, UH, THOSE ENTITIES HAVE EXTERNAL AUDITS.

WE DON'T RE AUDIT THAT INFORMATION.

WE JUST ACCEPT THE REPORTS THAT ARE PROVIDED BY THE OTHER AUDITORS.

WE ALSO LISTED IN OUR OPINION, AN EMPHASIS PARAGRAPH, UH, THAT REALLY JUST TALKS ABOUT THE ADOPTION AND IMPLEMENTATION OF A NEW ACCOUNTING STANDARD THIS YEAR, A GOVERNMENT GOVERNMENTAL ACCOUNTING STANDARDS, BOARD STATEMENT 84, WHICH IS FIDUCIARY ACTIVITIES THAT WAS ADOPTED BY THE CITY IN THE CURRENT YEAR.

SO IF YOU RECALL WHAT THE APP FOR LOOK LIKE IN PRIOR YEARS, THE CITY HAD ALWAYS REPORTED AGENCY FUNDS, AND THESE ARE FUNDS THAT ARE NOT NECESSARILY PART OF THE OPERATIONS OF THE CITY, BUT ARE HELD BY THE CITY IN A CUSTODIAL CAPACITY.

UH, SO THERE WAS, UH, SOME RE UH, PROBABLY A NEW DEFINITION OF WHAT CONSTITUTES AN AGENCY OR CUSTODIAL FUND.

SO THE CITY HAS, I WOULD SAY VERY IMMATERIAL, UM, ITEMS THAT THEY HAD TO MOVE OUT OF THESE FIDUCIARY ACTIVITIES AND PUT INTO OTHER AREAS OF THE, UH, THE CITY'S FINANCIALS, SPECIAL REVENUE FUNDS, AUSTIN ENERGY, BUT OVERALL, UM, NOT A MAJOR IMPACT TO THE CITY'S FINANCIAL STATEMENTS.

THE ACURA INCLUDES QUITE A BIT OF INFORMATION BEYOND JUST THE CORE FINANCIAL STATEMENTS.

THERE'S REQUIRED, SUPPLEMENTARY INFORMATION TO BUDGETS AND PENSIONS.

UH, THERE'S THE COMBINING SCHEDULES WHERE YOU CAN SEE INDIVIDUAL FUNDS AND THE ACTIVITIES OF INDIVIDUAL FUNDS, AS WELL AS A HEALTHY, ROBUST STATISTICAL SECTION THAT OUTLINED SOME OF THE, UM, MAYBE NON-FINANCIAL METRICS OF THE CITY.

SO OUR RESPONSIBILITIES FOR THE AUDIT, UH, WHICH DESCRIBED IN OUR CONTRACT, AS MARIA SAID, WE'RE IN YEAR FOUR OF A FIVE-YEAR CONTRACT.

AND WE ALSO ISSUE AN ANNUAL ENGAGEMENT LETTER, UH, MANAGEMENT AND THE AUDIT AND FINANCE COMMITTEE AS WELL HAVE RESPONSIBILITIES AS IT RELATES TO THE AUDIT.

UM, AND THAT INCLUDES PREPARING THE FINANCIAL STATEMENTS AND THE RELATED DISCLOSURES MANAGEMENT'S ESTIMATES JUDGEMENTS THAT TYPE OF THING.

OUR RESPONSIBILITIES ARE DETAILED IN THIS ATTACHMENT, APPENDIX A I WON'T GO THROUGH THAT UNLESS THERE ARE QUESTIONS RELATED TO WHAT OUR RESPONSIBILITIES ARE, BUT I THINK MOST OF US, OUR RESPONSIBILITY IS TO ISSUE AN OPINION ON THE FINANCIALS, WHICH OF COURSE WE'VE DONE.

SO NEXT SLIDE, PLEASE, THE ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES.

SO ACCOUNTING POLICIES, THERE WERE NO CHANGES, NO MATERIAL CHANGES TO ANY OF THE CITY'S ACCOUNTING POLICIES, OTHER THAN THE ADOPTION.

AS I MENTIONED ON GADSBY STATEMENT, NUMBER 84, YOU KNOW, WE EVALUATED ANY SIGNIFICANT QUALITATIVE ASPECTS, WHETHER IT RELATES TO THE ACCOUNTING PRACTICES, POLICIES, DISCLOSURES, ESTIMATES, AND CONCLUDED THAT THE POLICIES ARE APPROPRIATE.

THEY'RE ADEQUATE, ADEQUATELY DISCLOSED IN THE FINANCIAL STATEMENTS AND THEY THEY'RE CONSISTENTLY APPLIED BY MANAGEMENT.

SO IF YOU PICK UP ANY SET OF FINANCIAL STATEMENTS, YOU'LL TYPICALLY SEE THAT THERE ARE EMBEDDED IN THE FINANCIALS.

THERE ARE SIGNIFICANT ESTIMATES, AND THESE ARE ESTIMATES MADE BY MANAGEMENT.

UM, APPENDIX B TO THIS PRESENTATION, WE OUTLINE NOT ONLY THE SIGNIFICANT ESTIMATES, BUT WE OUTLINE WHAT THE CITY DOES TO DETERMINE THESE ESTIMATES, AS WELL AS

[00:30:01]

UM, I, WASN'T GOING TO GO OVER APPENDIX BEING IN DETAIL.

I'LL JUST HIT THE HIGHLIGHTS FROM THIS SLIDE, BUT, UH, THE FIRST TWO SIGNIFICANT ESTIMATES, UH, WE TALK ABOUT ARE OUR PENSION LIABILITIES, AS WELL AS OTHER POST-EMPLOYMENT BENEFITS ARE OPEB.

UH, THESE ARE NOT NEW.

THESE HAVE BEEN REPORTED FOR A NUMBER OF YEARS ON THE FINANCIAL STATEMENTS, THE CITY HIRES ACTUARIES TO HELP DETERMINE WHAT THESE BALANCES SHOULD BE.

UM, AND THERE ARE A LOT OF ASSUMPTIONS ASSOCIATED TO WHETHER IT'S INVESTMENT GROWTH RATE, DISCOUNT RATES, UM, MORTALITY TABLES, AS IT RELATES TO PENSIONERS.

AND THEN WE IN TURN FROM AN AUDIT APPROACH, WE EMPLOY OUR ACTUARIES AS PART OF OUR TEAM TO REVIEW THOSE ESTIMATES.

WE DIDN'T NOTE THAT THERE WERE ANY SIGNIFICANT CHANGES TO THOSE ESTIMATES THAT WERE MATERIAL.

AND WE DIDN'T NOTE ANY AUDIT ADJUSTMENTS RELATED TO THESE ESTIMATES.

AND THE NEXT ONE ON THE LIST WOULD BE ASSET RETIREMENT OBLIGATIONS.

UM, THESE AGAIN ARE ENVIRONMENTAL LIABILITIES.

UM, AUSTIN ENERGY HAS, UM, SOME OF THESE RECORDED ON THEIR FINANCIAL STATEMENTS AND THEY USE A SPECIALIST TO HELP DETERMINE, UH, SOME OF THESE LIABILITIES, UH, NOT ANNUALLY, BUT PERIODICALLY.

AND WE IN TURN HAVE AN INTERNAL SPECIALIST THAT WILL HELP US, UH, AUDIT THESE BALANCES AND THE ASSUMPTIONS.

AND AGAIN, JUST LIKE PENSIONS AND OPEB, THERE WERE NO UNREASONABLE ASSUMPTIONS THAT WERE NOTED, AND THERE WERE NO AUDIT ADJUSTMENTS RELATED TO ASSET RETIREMENT OBLIGATIONS.

AND LAST BUT NOT LEAST, WE HAVE THE DEFERRED AMOUNTS RELATED TO REGULATED OPERATIONS.

UH, THESE ARE APPLICABLE ONLY TO AUSTIN ENERGY AND AUSTIN WATER, AND IT BASICALLY RELATES TO THE ACCOUNTING FOR COSTS TO BE RECOVERED IN FUTURE RATES.

UH, SO IT'S A LARGE CALCULATION DONE BY MANAGEMENT.

UH, WE REVIEW THEIR CALCULATIONS.

DID NOT, AGAIN, NOTE ANY AUDIT ADJUSTMENTS.

AND SO NEXT SLIDE PLEASE.

AND I'LL TURN IT OVER TO CAMERON TO TALK ABOUT OUR UNCORRECTED MISSTATEMENTS.

GOOD MORNING, MAY I APPROACH THEM AND COUNCIL MEMBERS? UH, AS I MENTIONED, MY NAME IS CAMERON DECKER.

I'M THE SENIOR MANAGER SERVING ON THE CITY ACCOUNT THIS YEAR.

IT'S A PLEASURE TO BE WITH YOU THIS MORNING.

UH, I WANT TO JUST GO THROUGH A FEW OF OUR OBSERVATIONS FROM OUR AUDIT THIS YEAR AND SUMMARIZE, UH, JUST A FEW ITEMS FOR YOU.

SO THE FIRST ITEM THAT I'LL ADJUST IS THE UNCORRECTED MISSTATEMENTS.

UH, AS PART OF OUR AUDIT, WE DESIGN OUR TESTING TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS ARE FREE FROM MATERIAL MISSTATEMENT.

UH, WE'VE ATTACHED IN APPENDIX C THAT MANAGEMENT REPRESENTATION LETTER THAT SUMMARIZES THOSE UNCORRECTED MISSTATEMENTS.

WE ACCUMULATED AS PART OF OUR AUDIT AND PRESENTED TO MANAGEMENT DURING THE COURSE OF THE AUDIT.

UH, THESE MISSTATEMENTS WERE DETERMINED BY MANAGEMENT TO BE IMMATERIAL BOTH INDIVIDUALLY AND IN THE AGGREGATE.

AND WE AGREED WITH THAT ASSESSMENT AND THEREFORE THE FINANCIAL STATEMENTS WERE, WERE NOT ADJUSTED FOR THOSE ITEMS. UH, WE WILL GO THROUGH THOSE IN DETAIL, BUT WE DID WANT TO BRING TO YOUR ATTENTION ONE CORRECTED MISSTATEMENTS.

UM, THIS WAS A RESULT OF, UH, A CHANGE IN POLICY WITHIN THE HOUSING ARENA.

THE RESULT OF THE CORRECTION WAS RECOGNITION OF CAPITAL OUTLAY EXPENDITURES IN THE, UH, SPECIAL REVENUES HOUSING FUND, AND A DECREASE IN LAND HELD FOR SALE.

UM, THE GOVERNMENT WIDE FINANCIAL STATEMENTS, THE CORRECTION WAS A RECLASSIFICATION FROM LAND HELP FROM SELL TO CAPITAL ASSETS.

UH, AS YOU CAN SEE, THIS WAS A VERY SPECIFIC AREA, UH, SPECIFIC TO HOUSING AND THE LAND HELD FOR SALE DETERMINATION THAT THE CITY HAS HAD IN PLACE IN PRIOR YEARS.

UH, THE AMOUNT OF THIS CORRECTION WAS $21.9 MILLION REFLECTED IN THE FINANCIAL STATEMENTS.

AND WE'LL TALK A LITTLE BIT MORE IN A COUPLE OF SLIDES AS WE DISCUSSED THE CONTROL IMPACT OF THIS CORRECTION.

FOR US AND WERE MEANINGFUL PART OF OUR AUDIT, UH, SPECIFICALLY THE SINGLE AUDIT PROGRAMS THAT WE AUDITED THIS YEAR.

A FEW OTHER ITEMS OF NOTE HERE.

UM, THIS SLIDE REALLY SUMMARIZES THAT WE, WE RECEIVED THE FULL COOPERATION OF CITIES MANAGEMENT.

WE DIDN'T HAVE ANY DISAGREEMENTS WITH MANAGEMENT.

UH, THERE WAS NO CONSULTATIONS WE WERE MADE AWARE OF WITH OTHER ACCOUNTANTS OUTSIDE OF OUR DELOITTE AUDIT TEAM, AND WE ENCOUNTERED NO SIGNIFICANT DIFFICULTIES DURING THE PERFORMANCE OF OUR AUDITS.

UH, AS I'VE I'VE MENTIONED ALREADY, WE DID OBTAIN A MANAGEMENT REPRESENTATION LETTER THAT WE'VE, UH, UH, UH, UH, INCLUDED HERE AS APPENDIX C UH, TO OUR PRESENTATION AND WOULD BE HAPPY TO ANSWER ANY QUESTIONS ON THAT HERE IN A FEW MINUTES.

UM, THIS WAS MY FIRST YEAR SERVING THE CITY AND, UH, I WAS, UM, VERY, VERY MUCH, UH, IT WAS A PLEASURE TO SERVE WITH THE CITY TEAM, MARIA AND HER'S TEAM AND THE CONTROLLER'S OFFICE SPECIFICALLY.

UH, AS WE MENTIONED, WE RECEIVED THEIR FULL COOPERATION AND IT WAS A PLEASURE WORKING WITH THEM.

UH, THE OTHER ITEM OF NOTE ON THIS SLIDE IS RELATED TO OUR SUBCONTRACTING FIRM, A MONSTER MAYOR IN AND BENDER.

THEY PROVIDED SOME CONSISTENT STAFFING

[00:35:01]

UH, NEXT SLIDE, PLEASE.

UH, AS TRACY MENTIONED EARLIER, AS PART OF OUR AUDIT, WE DO ISSUE A SEPARATE REPORT ON INTERNAL CONTROLS OVER FINANCIAL REPORTING IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS.

WE CALL THIS THE YELLOW BOOK REPORT.

UH, WE DO NOT EXPRESS AN OPINION ON CONTROLS, BUT AS PART OF OUR FINANCIAL AUDIT, WE DO CONSIDER THE DESIGN OF CODE TROLLS TO ASSIST OUR AUDIT PROCEDURES, UH, RELATED TO THE CORRECTED MISSTATEMENT THAT WE DISCUSSED EARLIER.

UH, WE DID IDENTIFY A DEFICIENCY IN CONTROLS THAT WE CONSIDERED TO BE A SIGNIFICANT DEFICIENCY.

THE DEFINITIONS OF THE VARIOUS DEFICIENCY LEVELS ARE INCLUDED IN APPENDIX D.

THOSE ARE SET FORTH BY THE AI CPA.

UH, FOR THIS ITEM, WE DETERMINED THE CONTROL DEFICIENCY WAS NOT A MATERIAL WEAKNESS, BUT WAS THAT THE LEVEL THAT WE WOULD WANT TO BRING IT TO THE ATTENTION OF THOSE CHARGED WITH GOVERNMENTS, WHICH IS, WHICH IS THIS GROUP WE'VE INCLUDED THE WORDING OF THIS SIGNIFICANT DEFICIENCY, UH, ON THE NEXT SLIDE, IF WE WANT TO MOVE TO COUNCIL BEFORE YOU, BEFORE YOU MOVE TO THAT.

UM, SO IF YOU'RE NOT EXAMINING OR TESTING OUR INTERNAL CONTROLS, WHERE SHOULD WE BE TESTING THOSE INTERNAL CONTROLS? AND HOW DO WE TEST THOSE AS PART OF OUR AUDIT PROCESS, WE DO, AS CAMERON SAID, WE DO LOOK AT THE DESIGN AND IMPLEMENTATION OF THOSE CONTROLS, AND WE LOOK AT THEM BY PROCESS PAYROLL REVENUES.

UH, SO AS PART OF OUR PROCESS IS IF WE NOTE THAT THERE ARE DEFICIENCIES OR GAPS IN THOSE CONTROLS, BECAUSE YOU CAN HAVE A CONTROL THAT'S PROPERLY DESIGNED, BUT IT COULD NOT BE IMPLEMENTED, OR YOU COULD HAVE ONE THAT'S NOT PROPERLY DESIGNED AND NOT IMPLEMENTED.

SO WHEN WE'RE GOING THROUGH, WE DO LOOK AT CONTROLS.

UM, WHAT WE'RE MENTIONING IS WE, WE DON'T OPINE SPECIFICALLY ON CONTROLS AS YOU WOULD SEE IN PERHAPS A PUBLIC COMPANY.

UM, BUT THE EXTENT THAT WE, UH, DO OUR AUDIT PROCEDURES IDENTIFY ANY GAPS IN THOSE CONTROLS, IF WE BELIEVE THOSE TO BE SIGNIFICANT, WE WOULD BRING THEM A MAYOR PRO TEM TO YOU IN THE COMMITTEE.

SO IS THERE ANOTHER STEP THAT WE OUGHT TO BE TAKING WITH RESPECT TO THOSE INTERNAL CONTROLS SINCE THIS, I THINK, UM, YOU KNOW, WHAT OTHER CLIENTS DO, YOU KNOW, INTERNAL AUDIT IS IN THE CITY AUDITOR'S OFFICE IS, YOU KNOW, A PART OF THIS, AS FAR AS LOOKING INTERNALLY AT WHAT CONTROLS COULD BE STRENGTHENED.

I THINK IF WE LOOK AT, FROM A FINANCIAL REPORTING STANDPOINT, UM, YOU, MARIA AND HER TEAM CONTINUE TO ASSESS CONTROLS.

DO THEY HAVE THE RIGHT CONTROLS IN PLACE? I THINK A GOOD EXAMPLE OF THAT WOULD BE GOING REMOTE WORK, YOU KNOW, WHERE THE CONTROLS IN PLACE THAT NEEDED TO BE IN PLACE.

SO I DO THINK IT'S A CONTINUOUS PROCESS, UM, AS FAR AS THE FINANCE TEAM, AS WELL AS YOU HAVE THE INTERNAL AUDIT STANDPOINT, AND THEN OUR LOOK EVERY YEAR AT, YOU KNOW, SPECIFIC CONTROLS AS WELL.

SO I DON'T KNOW THAT YOU WOULD NEED TO HAVE, YOU KNOW, A SARBANES-OXLEY TYPE, UH, REPORT, UM, YOU KNOW, FOR THE CITY, BUT, YOU KNOW, CERTAINLY WE CAN CONTINUE TO HAVE THAT DIALOGUE.

FINALLY COMMUNICATION OF POLICY CHANGES.

WE CAN CONTINUE WITH THE SLIDES.

GREAT POINT OF CLARIFICATION.

UM, AND THEN I THINK FLIPPING FORWARD TO A COUPLE OF SLIDES, UH, MAYBE NEXT ONE.

OH, I THINK WE'RE GOING THE WRONG DIRECTION.

UM, THIS IS THE WORDING THAT WE'VE, UH, INCLUDED, UH, AROUND THAT SIGNIFICANT DEFICIENCY THAT WE, UH, IDENTIFIED ALONG WITH ON THE NEXT SLIDE, THE RESPONSE FROM, FROM MANAGEMENT.

I WON'T READ THIS TO YOU, BUT I WILL SUMMARIZE, WE WANT TO FLIP TO THE NEXT SLIDE.

UH, THE CAUSE OF THIS CONTROL, UH, FAIL FAILURE WAS, WAS REALLY A POLICY CHANGE THAT DID NOT GET REFLECTED WITHIN THE FINANCIAL STATEMENTS.

THIS WAS A VERY SPECIFIC POLICY, UH, CHANGE THAT WAS TAKEN BY AUSTIN HOUSING DURING FYI 21, JUST RELATED TO THEIR CLASSIFICATION AND DETERMINATION THAT LAND HELD FOR SALE, UH, THAT, THAT HAS BEEN ACCUMULATED PREVIOUSLY BY AUSTIN.

HOUSING WAS NOT REALLY GOING TO BE HELD FOR SALE ANY FURTHER.

THERE, THERE WERE SOME CHANGES TO THIS POLICY, UH, THAT WOULD, THAT WOULD TRIGGER AN ACCOUNTING TREATMENT WHERE WE WOULD RECLASSIFY THAT, UH, LAND HELD FOR SALE JUST TO A CAPITAL ASSET INSTEAD OF IT BEING HELD FOR SALE.

AS WE MENTIONED EARLIER, THAT HAS SOME ACCOUNTING IMPLICATIONS BASED ON BOTH ON THE GOVERNMENT WIDE FINANCIALS, AS WELL AS WITHIN THE SPECIAL REVENUES HOUSING FUNDS.

UH, OUR RECOMMENDATION RELATED TO THIS CONTROL WAS REALLY FOCUSED ON TRAINING AND, AND

[00:40:01]

UH, THAT IS EXACTLY HOW, UM, THE CITY MANAGEMENT HAS RESPONDED WITH THEIR, UH, VIEW AND FUTURE TO ADDRESS THIS ITEM.

AND DELOITTE WILL HELP WITH THE TRAINING EFFORT ON THIS FRONT, UH, IF NEEDED IN THE FUTURE AS WELL.

NEXT SLIDE, I'LL TURN IT BACK OVER TO TRACY TO TALK TO THE STATUS OF OUR OTHER REPORTS AND GET INTO THE SINGLE AUDIT.

ALL RIGHT.

SO OTHER REPORTS THAT, UM, ARE PART OF OUR CONTRACT, ONE IS THE PASSENGER FACILITY CHARGE REPORT, AND THIS ON THE AUDIT STEPS ON THIS REPORT ARE DICTATED BY THE FAA.

UH, WE ARE IN PROCESS WITH THIS, UH, REPORT AND THEN THE AUDIT, UH, WE, WE EXPECT TO FINISH IN THE NEXT WEEK OR SO.

UM, AS OF THIS DATE, NO ISSUES TO REPORT TO THE COMMITTEE.

WE ALSO HAVE AN AGREED UPON PROCEDURES REPORT, UM, DICTATED BY TEXAS COMMISSION ON RODMAN QUALITY.

THAT REPORT HAS BEEN COMPLETED AND FILED BY THE CITY, UH, WITH TCEQ.

AND THEN LASTLY, WE HAVE THE SINGLE AUDIT GRANT REPORT.

UM, MAYBE FLIP TO THE NEXT SLIDE.

WE CAN RECAP THAT, UH, REPORT, UH, MARIA MENTIONED THAT, UH, THAT REPORT WAS ISSUED MONDAY, SO VERY MUCH HOT OFF THE PRESSES FOR US.

UH, THERE'S A FEDERAL PIECE AND A STATE PIECE.

UM, AS FAR AS THE PROGRAMS THAT WE LOOK AT, WE REPORT ON THE CO COMPLIANCE RELATED TO THESE PROGRAMS, AS WELL AS THE INTERNAL CONTROLS OVER COMPLIANCE IN, IN EXECUTING THESE PROGRAMS. AND WE ISSUED CLEAN OPINION.

SO UNMODIFIED OPINIONS ON BOTH THE FEDERAL AND THE STATE SIDE, I SAY, NEXT SLIDE, PLEASE.

SO FROM A FEDERAL PROGRAM PERSPECTIVE, I MEAN, I, NOT NEWS TO ANYONE ON THE COMMITTEE, YOUR FEDERAL PROGRAM EXPENDITURES HAVE EXPLODED IN THE LAST FEW YEARS.

IT'S ABOUT 238 MILLION IN .

THE MAJOR PROGRAMS THAT WE SELECTED FOR TESTING, UH, ARE LISTED BELOW, UH, THESE PROGRAMS. A LOT OF THEM INVOLVE, YOU KNOW, CARES DOLLARS CORONAVIRUS RELIEF FUNDING, AND THESE ARE NEW AND WE WOULD, WE WOULD EVEN BE HIGHER RISK PROGRAMS. SO THEY WERE SELECTED FOR AUDITING IN THE CURRENT YEAR.

THE THIRD ONE ON THE LIST, THE CORONAVIRUS AID RELIEF AND ECONOMIC SECURITY ACT CARES.

UH, THIS WAS ACTUALLY AUDITED IN THE PRIOR YEAR AS WELL.

THERE WAS ONE FINDING, UM, IF YOU RECALL IT RELATED TO, UH, THE REIMBURSEMENT REQUESTED OR BY THE CITY, UM, FOR CARES DOLLARS WERE ACTUALLY REIMBURSED BY, BY OTHER FUNDING SOURCES.

UH, IT WAS ABOUT 70,000.

UH, SO WE DID AUDIT THE PROGRAM AGAIN THIS YEAR.

WE DID NOT NOTE THE SAME ISSUE.

UH, SO THAT ISSUE, UM, APPEARS TO BE CORRECTED FROM THE CITY'S STANDPOINT.

AND THEN THE OTHER PROGRAMS THAT WE LISTED HERE, YOU KNOW, EVEN IF IT'S AN AIRPORT PROGRAM OR, YOU KNOW, FEMA, THERE ARE SOME CARES DOLLARS ASSOCIATED WITH A LOT OF THESE PROGRAMS. UH, SO AGAIN, JUST IN THE STATE THAT WE'RE IN, AS FAR AS THE FEDERAL DOLLARS, A LOT OF WHAT THE FEDS ARE DOING ARE DICTATING WHICH PROGRAMS WE'RE AUDITING, UH, FROM THAT STANDPOINT.

AND THEN, SO THE NEXT SLIDE ON THE STATE PROGRAMS, UH, SIGNIFICANTLY FEWER DOLLARS, 4 MILLION IN STATE PROGRAM EXPENDITURES FOR FY 21.

AND WE DID SELECT THREE MAJOR PROGRAMS, UH, FOR ALL OF THE PROGRAMS, FEDERAL AND STATE.

WE DID NOT HAVE ANY REPORTABLE FINDINGS, SO NOTHING IN THE SINGLE LOTTA REPORT TO, UH, TALK ABOUT ANY FINDINGS RELATED TO COMPLIANCE OR INTERNAL CONTROL OVER COMPLIANCE.

SO BY ALL ACCOUNTS, A CLEAN AUDIT FROM BOTH THE FEDERAL AND STATE STANDPOINT, NEXT SLIDE, PLEASE, UH, REALLY JUST OUR APPENDICES CAMERON AND I REALLY COVERED WHAT'S IN THE REST OF THE DOCUMENT.

WE'RE HAPPY TO COVER ANY OF THIS ADDITIONAL INFORMATION IF THE COMMITTEE WOULD LIKE, UH, AND CERTAINLY HAPPY TO, TO ENTERTAIN ANY QUESTIONS.

UH, CAMERON WAS VERY, YOU KNOW, CORRECT WHEN HE SAID WE DO RECEIVE FULL COOPERATION FROM THE CITY.

UM, MARIA AND HER TEAM ARE GREAT TO WORK WITH AND THEY HELP US, UM, AS FAR AS TALKING WITH OTHER DEPARTMENTS OUTSIDE OF THE CITY CONTROLLER'S OFFICE, UM, TO MAKE SURE THAT THE AUDITS DONE COMPLETELY AND EFFICIENTLY.

AND, UH, CERTAINLY WE HAD NO ISSUES WITH, WITH EITHER OF THOSE FROM THE STANDPOINT OF THIS YEAR'S AUDIT.

SO HAPPY TO ENTERTAIN ANY QUESTIONS, THINK IF WE CAN TAKE THE SLIDES OFF, PLEASE.

THIS IS FROM THE LAST FISCAL YEAR'S, UM, RECORD.

UM, SO I WANTED TO JUST FIRST PAUSE FOR A SECOND AND, AND ACKNOWLEDGE HOW IMPORTANT IT IS ON THAT SINGLE AUDIT, GIVEN THE SHIFTS THAT WE HAD IN FEDERAL FUNDING AND THE AMOUNT OF MONEY THAT WAS COMING IN FROM, FROM THE CARES ACT, AND THEN SUBSEQUENTLY OUR BO ARPA-E IS NOT A PART OF THIS AUDIT.

UM, THAT WAS A REALLY TALL TASK UNDER, UM, YOU KNOW, DIFFICULT CIRCUMSTANCES.

YOU KNOW, A LOT OF THAT MONEY CAME IN WHEN WE WERE IN 2020, CAUSE

[00:45:01]

AND SO I'M REALLY GLAD TO SEE THE CLEAN OPINION ON THAT.

THAT WAS A REALLY BIG CHALLENGE FOR OUR CONTROLLER'S OFFICE AND FOR ALL OF OUR DEPARTMENTS TO MAKE SURE, UM, THAT WE WERE, UM, MEETING THE NEEDS OF OUR COMMUNITY AT THE SAME TIME THAT WE WERE COMPLYING WITH ALL OF THE, SOMETIMES OUR KEEN REQUIREMENTS OF, OF THE FEDERAL GOVERNMENT IN THAT REGARD.

UM, SO I WANT TO ACKNOWLEDGE THAT, UM, I WILL UNDERSCORE ONCE AGAIN, SOMETHING I'VE SAID PREVIOUSLY IN COUNCIL THAT THE, UM, SMALL NUMBER OF STATE DOLLARS IS KIND OF ASTONISHING, UM, GIVEN WHAT WE JUST WENT THROUGH OF WHAT'S COMING TO SUPPORT, SUPPORT OUR CITY.

UM, AND THEN I DID WANT TO CHECK FOR, UM, THE URBAN OUTDOOR EMMA LONG PROGRAM THAT'S FOR THE WORK THAT WAS AT EMMA LONG PARK.

IS THAT CORRECT? THAT'S CORRECT.

YEAH.

UM, COLLEAGUES, ARE THERE ANY QUESTIONS OR COMMENTS ON THE AUDIT OR THE, THE KAPHA OR THE SINGLE AUDIT? GREAT.

UM, MARIA OR, UM, MR. VINNY? NO.

DID YOU HAVE ANYTHING ELSE THAT YOU WOULD LIKE TO ADD AT THIS POINT? UH, NO.

I REALLY APPRECIATE EVERYTHING THAT THE WHITE TEAM DID TO HELP US GET US TO THIS POINT, AS WELL AS THE CONTROLLER'S STAFF AND, AND THE CITY DEPARTMENT, FINANCIAL STAFF.

I KNOW IT WAS A HUGE UNDERTAKING, ESPECIALLY FOR THE SINGLE AUDIT, GIVEN THE AMOUNT OF FUNDS THAT WE RECEIVED THIS YEAR AND TO COME OUT WITH A CLEAN OPINION AND NO FINDINGS IS ASTONISHING.

SO, UM, ONE LAST THING JUST FOR THE, FOR THE CAFFER AND THE CORRECTIVE ACTION THERE.

UM, I FEEL LIKE THE SLIDES THAT I HAVE FROM THIS MORNING AND THE SLIDES THAT I SAW YESTERDAY ARE SLIGHTLY DIFFERENT.

SO I'M STRUGGLING A LITTLE TO FIND WHERE, WHERE THE, WHERE THE PIECES ARE.

UM, BUT FOR THE CORRECTIVE ACTION, UM, FOR THE, FOR THE MATERIAL DEFICIENCY, UM, AGAIN, DELOITTE DOESN'T TELL US WHETHER THEIR CORRECTIVE ACTION IS SUFFICIENT.

WILL THAT THEN BE CHECKED NEXT YEAR TO MAKE SURE THAT THAT WORKED, OR, OR I JUST WANT TO MAKE SURE THAT, THAT WE HAVE THE EXPERT OPINIONS ON THE CHOICES THAT ARE BEING MADE, UM, IN THIS PROCESS, YES, WE HAVE A RESPONSIBILITY TO FOLLOW UP ON PRIOR YOUR FINDINGS IN THE NEXT YEAR.

SO YES, WE WILL LOOK AT THAT IN THE NEXT YEAR AND, YOU KNOW, THE WAY THIS, UM, W THE DEFICIENCY THAT WE HAD, REALLY, THE AUDIT ADJUSTMENT THAT WAS MADE, THAT WAS PAIRED WITH THAT, THAT $21 MILLION THAT CAMERON SPOKE OF IT'S PROPERLY REFLECTED IN THE FINANCIALS.

SO IT'S NOT AT THAT.

THERE'S A LINGERING EFFECT FROM A FINANCIAL STATEMENT STANDPOINT, BUT AS FAR AS THE CONTROL ASPECT, CERTAINLY THAT IS SOMETHING WE WILL, WE'LL LOOK AT IN NEXT YEAR'S ON IT.

AND THEN, UM, THAT WE, WE DID CONCUR WITH THEIR FINDING, AND WE DID, WE ARE PUTTING SOME CONTROLS IN PLACE, UH, FOR THIS COMING YEAR TO MAKE SURE THAT, UM, YOU KNOW, WHERE WE'RE ADDING SOME QUESTIONS TO BOTH THE SIGNIFICANT ITEMS QUESTIONNAIRE, AS WELL AS OUR DISCUSSIONS WITH DEPARTMENT FINANCIAL STAFF.

UM, JUST SO THAT WAY WE UNDERSTAND IF THERE'S ANY POLICY CHANGES LIKE THIS, THAT THAT WOULD IMPACT FINANCIAL REPORTING.

SO, UM, AND UNDERSTAND THAT YOU'LL BE DELIVERING THE CAFFER AND THE SINGLE AUDIT THAT THE FULL AMOUNTS, UM, IT IS CHALLENGING WHEN WE GET SOMETHING LIKE APPENDIX A THAT HAS ALL SORTS OF LITTLE LETTERS THAT ARE ATTACHED TO IT.

THAT DON'T HAVE A KEY, BECAUSE IT'S NOT THE FULL APPENDIX TO REALLY UNDERSTAND WHAT WE'RE LOOKING AT.

UM, SO IN THE FUTURE FOR YOUR INCLUDING PIECES LIKE THAT, THAT YOU THINK ARE RELEVANT FOR US TO LOOK AT FOR THIS PRESENTATION, IF WE CAN HAVE THE KEY, UM, TO KNOW WHAT THOSE NOTATIONS MEAN, IT MEANS A LOT LESS TO US UNDER THOSE CIRCUMSTANCES.

AND, UM, OBVIOUSLY WE'LL EACH RECEIVE THE KAPHA AND CAN, CAN REVIEW IT AT THAT POINT AND BRING UP ANY QUESTIONS, UM, THAT WE HAVE ANY LAST QUESTIONS FROM COLLEAGUES.

WELL, UM, THANK YOU TO, TO MARIA AND TO DELOITTE, UM, FOR YOUR PRESENTATION, UH, WE APPRECIATE YOUR BEING HERE AND THE WORK THAT YOU'RE DOING TO, TO MAKE SURE THAT WE HAVE THE SOUND POLICIES IN PLACE.

THANK YOU SO MUCH.

[4. Briefing on Austin-Bergstrom Landhost Enterprise, Inc. (ABLE) operations and financial information of the Hilton Hotel at Austin-Bergstrom International Airport]

ALL RIGHT.

OUR NEXT ITEM IS ITEM NUMBER FOUR, ABEL AIRPORT PRESENTATION.

UM, AND SO THIS IS A QUARTERLY BRIEFING FROM ABEL THAT WE HAVE INSTITUTED IN THE AIRPORT, UM, WITH RESPECT TO SOME ACTIVITIES AS WE, AS WE COME OUT OF COVID.

UM, I BELIEVE THAT TODAY'S STORY IS A GOOD STORY, AND I'M LOOKING FORWARD TO, TO HEARING FROM OUR STAFF AS WELL AS FROM UNITE HERE.

THANK YOU VERY MUCH.

MAYOR PRO TEM AND COUNCIL

[00:50:01]

MEMBERS.

I AM TRACY THOMPSON AND MY SHORT TITLE IS I'M THE CHIEF ADMINISTRATIVE OFFICER FOR THE DEPARTMENT OF AVIATION AUGUST FROM AUSTIN BERGSTROM INTERNATIONAL AIRPORT.

I AM ALSO ON THE BOARD OF, UM, AUSTIN BERKSHIRE LANTOS ENTERPRISES, WHICH IS THE CORPORATION THAT A MAN OPERATES AND MANAGES THE HILTON HOTEL AT THE AIRPORT.

AND I ALSO SERVE AS THEIR VICE PRESIDENT OF THE ABL CORPORATION WITH ME TODAY IS MY COLLEAGUE RASHID THOMAS, WHO IS THE AIRPORT, UH, DEPUTY CHIEF OF FINANCE, AND ALSO MR. WILLY GONZALES, WHO WAS THE SECRETARY TREASURER OF UNITE HERE, LOCAL 23.

UM, NEXT SLIDE PLEASE.

AND ACTUALLY, WHY DON'T WE GO AT THE NEXT SLIDE, PLEASE? SO, AS A MAYOR, PRO TIM SAID, WE'RE HERE.

UM, UM, WE'RE HERE TO CON UH, PROVIDE AN UPDATE TO THIS COMMITTEE REGARDING THE OPERATIONS OF THE, UM, OF THE AUSTIN HILTON HOTEL.

AS YOU MAY KNOW, ABEL IS A TEXAS NONPROFIT PUBLIC FACILITY CORPORATION.

IT WAS CREATED BY THE CITY COUNCIL IN 1998 AND HAS BEEN OPERATING THIS HOTEL.

UM, SINCE THAT TIME TO SPEAR FORT OPENED IN 99, UM, WE ARE GOING TO BE REVIEWING THE FINANCIAL UPDATES RESOLUTION, LIVING, WAGE IMPLEMENTATION, AND SOME OTHER ITEMS WE THOUGHT WE THINK MIGHT BE OF INTEREST TO THIS COMMITTEE.

AND I'M GOING TO TURN THE MIC OVER TO BRUSHY.

WHO'S GOING TO TALK ABOUT THE FINANCIAL UPDATE, INCLUDING OUR OPERATING RESULTS, UM, AND, UH, THE LOAN AND GRANT AGREEMENT UPDATE THAT WAS APPROVED BY CITY COUNCIL LAST YEAR.

SO THANK YOU.

GOOD MORNING.

MAY I APPROACH THEM AND COUNCIL MEMBERS? MY NAME IS RAJIV THOMAS, DEPUTY CHIEF FOR FINANCIAL INNOVATION DEPARTMENT.

SO THIS, THIS SLIDE, I KNOW THE LAST TIME WE, UH, WE WERE HERE BEFORE THE, THE, THE COMMITTEE.

NO, WE DIDN'T GET A CHANCE TO PRESENT THE Q4 OR THE, UH, THE FOURTH QUARTER OF 2021 RESULTS.

SO HERE'S A COMPARISON OF THE, YOU KNOW, THE, THE FOURTH QUARTER OF 2021 AND THE FIRST QUARTER OF 2022, UH, RESULTS, UH, SIDE BY SIDE.

SO AS YOU CAN SEE, OCTOBER, 2021 WAS A REALLY GOOD MONTH WITH F1 AND THE OTHER EVENTS THAT WERE GOING ON IN HERE IN AUSTIN, UH, THE REVENUES CAME IN ABOUT $1.4 MILLION, AND THEN NOVEMBER AND DECEMBER ALSO WERE VERY STRONG ONCE FOR THE HOTEL WITH 1.2 MILLION IN OPERATING REVENUES.

AND 1.1 MILLION IN DECEMBER ALSO.

AND, UH, FOR THE QUARTER, UH, THE OPERATING REVENUES WERE ABOUT 3.8 MILLION, AND THE EBITDA WAS ABOUT 1.2 MILLION.

AND YOU CAN SEE THE OCCUPANCY LEVELS IN THOSE MONTHS, UH, WAS ABOUT AVERAGE, ABOUT 83%.

SO THAT'S REALLY, REALLY GOOD, UH, COMPARED TO THE FULL YEAR OF 62%.

SO WE REALLY DID KIND OF RAMP UP IN THE FOURTH QUARTER OF LAST YEAR.

AND UNFORTUNATELY IN JANUARY, WE HAD THE ARMY CROWD.

UM, THE FACT, AND YOU CAN SEE THE OCCUPANCY LATE, UH, RATES KIND OF WENT DOWN TO 61%, BUT THEN AS YOU KNOW, THAT KIND OF ABT, UH, YOU KNOW, OCCUPANCY LEVELS STARTED PICKING UP TO CLOSE TO 80% IN FEBRUARY AND AN EXCELLENT MONTH IN MARCH OF ALMOST 89% OCCUPANCY LEVELS AND AN ADR OF ALMOST $181 THE ROOM.

SO THE MARCH, WE HAD OBVIOUSLY THE, YOU KNOW, COUPLE OF MAJOR EVENTS LIKE THE NASCAR AND ALSO THE SOUTH BY SOUTHWEST.

AND, UH, SOME OF THE OTHER, YOU KNOW, LOCAL EVENTS THAT HAPPEN HERE REALLY CONTRIBUTED TO A VERY STRONG VIEW ONE, UH, IN 2022 NEXT FIVE WEEKS.

THIS IS SORT OF A, FULL-YEAR LOOK AT THE, UM, THE, THE 2021 PERFORMANCE, AS YOU CAN SEE, JANUARY AND FEBRUARY WERE REALLY HEAVILY AFFECTED BY, UM, THE COVID VIRUS.

AND THEN IN MARCH MONTHS OF VACCINATION, UM, STARTED RAMPING UP, YOU KNOW, THE RESULTS STARTED IMPROVING, AND YOU CAN SEE THE REVENUES RIGHT HERE ON THE OPERATING REVENUES STARTING TO RAMP UP.

AND BY THE FOURTH QUARTER, WE WERE EXCEEDING $1 MILLION MONTHLY ON OPERATING REVENUES.

AND SO WE ENDED THE YEAR WITH $9.9 MILLION IN OPERATING REVENUES, AND THAT WAS BETTER THAN BUDGET BY ABOUT $2.2 MILLION.

AND ALSO THE EBITDA ALSO WAS ABOUT 1.7 MILLION BETTER THAN WE HAD BUDGETED FOR THE FULL YEAR.

AND YOU CAN SEE THE HILTON, UM, AUSTIN AIRPORT OCCUPANCY LEVEL OF 62.1%.

SO THE NEXT FEW SLIDES IS GOING TO BE A COMPARISON.

UH, WE'RE GOING TO COMPARE, UH, HOW THE HOTEL PERFORMED VERSUS OTHER, YOU KNOW, AUSTIN PROPERTIES AND ALSO OTHER AIRPORT HOTELS.

SO THIS IS A COMPARISON FOR THE FULL YEAR, UH, FOR FISCAL YEAR 21.

[00:55:01]

UH, THE MARKET IN AUSTIN THAT'S THE OVERALL MARKET IN AUSTIN WAS A LITTLE BIT BETTER AT 62.6, BUT THE ATRS OR THE AVERAGE DAILY ARRAY FOR HILTON WAS BETTER.

AND THE REVENUE PER AVAILABLE ROOM IS ALSO BETTER THAN THE AVERAGE HERE IN AUSTIN.

AND, YOU KNOW, COMPARED TO THE COMPETITIVE SET, UH, AND THESE OTHER, YOU KNOW, LIST OF HOTELS THAT WE COMPARE TO ON THE COMPARATIVE COMPETITIVE SET AT THE BOTTOM, IT ALSO OUTPERFORMED, UH, 62% IN OCCUPANCY LEVEL VERSUS ABOUT 50% FOR THE COMPETITIVE SIDE, AND ALSO ARE PERFORMED IN THE AVERAGE DAILY RATE AND THE REVENUE PER AVAILABLE.

AND THIS IS A COMPARISON OF AIRPORT HOTELS, AS I MENTIONED BEFORE.

UM, THIS IS FOR THE FULL YEAR IN 2021.

SO WE ARE COMPARING SOME AIRPORTS, UH, AIRPORT HOTELS IN, UH, NEW ORLEANS, UH, SAN LOUIS, PORTLAND AND PITTSBURGH THAT ARE KIND OF SIMILAR, UH, TO OUR PROPERTY, UM, WHICH HAS WHAT WE CALL NOT OUR AIRPORTS ARE LIKE, YOU KNOW, UH, DFW AND CHARLOTTE, WHICH ARE HUBS FOR THE AIRLINES.

SO THE HILTON HOTEL, AGAIN, OUTPERFORM THOSE THAT COMPARATIVE SET TO A 62% OCCUPANCY LEVEL VERSUS 54% AND THE AVERAGE DAILY ROOM RATE, AND ALSO THE REVENUE PER AVAILABLE ROOM ALSO EXCEEDED THAT COMPARATIVE SET OF AIRPORT HOTELS.

AND THIS IS NOW JUST YEAR TO DATE, UH, Q1 OF 2022 COMPARISON WHERE IT SAYS AUSTIN AIRPORT.

I MEAN, AUSTIN, UH, HOTELS.

UH, SO THE THROW MARCH YEAR TO DATE, WE ARE ABOUT 77% OCCUPANCY AS AN AVERAGE, UH, WITH AN AVERAGE DAILY RATE OF $162, AND THEN REVENUE PER AVAILABLE ROOM.

SO $124 VERSUS THE OVERALL AUSTIN MARKET AT ABOUT 63% OCCUPANCY LEVEL, UH, AND SLIGHTLY BELOW ABOUT $158 IN TERMS OF AVERAGE DAILY ROOM RATE AND $99 IN TERMS OF REVENUE PER AVAILABLE ROOM.

AND THE, THE COMPETITIVE SIDE THAT WE MEASURE THE HILTON AGAINST, UH, WAS EVEN LOWER AT ALMOST 49% IN TERMS OF OCCUPANCY AND THE ADR AND THE REVENUE PROMO.

AND, AND THIS IS AGAIN, A Q1 OF 22 COMPARISON VERSUS THE, THE OTHER, UH, AIRPORT HOTELS.

UH, YOU CAN SEE, WE ARE PERFORMING BETTER AT 77% OCCUPANCY VERSUS 62%.

AND THE ATRS IS, IT'S A SIGNIFICANT DIFFERENCE HERE, ABOUT $162 VERSUS ALMOST $120, UH, IN THE COMPARATIVE SIDE, AND THEN REVENUE PER AVAILABLE ROOM, AND ALSO AT $124 VERSUS 74 HOURS.

UH, MR. MR. THOMAS, BEFORE YOU, I'M GONE, IF YOU GO BACK ONE SLIDE, I JUST WANT TO MAKE SURE THAT I'M UNDERSTANDING.

SO YOU'RE SAYING THAT OUR YEAR TO DATE WAS BETTER THAN THE MARKET COMPARISON IN GENERAL IN AUSTIN, AS WELL AS THE COMPETITIVE SET, WHICH IS A SUBSET OF THAT MARKET.

IS THAT RIGHT? OKAY, GREAT.

YOU CAN CONTINUE.

SO NEXT, I THINK I CAN FLIP TWO SLIDES.

ALL RIGHT.

SO THAT WAS JUST A, THE SUMMARY OF THE OPERATING RESULTS SO FAR, UH, FOR THE HOTEL, WHICH IS, YOU KNOW, DOING VERY WELL AS YOU CAN SEE.

UH, SO I'LL JUST GO OVER THE STATUS OF THE LOAN AGREEMENT, THE OPERATING LOAN AGREEMENT THAT THE CITY COUNCIL APPROVED.

THAT IF, UH, THE OPERATING RESULTS AND THE OPERATING, UH, CASH IS SUFFICIENT ENOUGH THAT ABLE TO MAKE A GOOD FAITH EFFORT TO PAY THE BALANCE BACK EARLY.

SO THE CITY COUNCIL HAD APPROVED 2.6 MILLION AND OPERATING LOANS.

UH, THERE WAS A BASE LOAN AMOUNT OF 1.3, 5 MILLION AND A CONTINGENCY LINE OF CREDIT OF 1.2, 5 MILLION THAT IS AVAILABLE IF NEEDED THROUGH DECEMBER OF 2022.

SO INITIALLY ABEL HAD DRAWN ABOUT 1.3, 5 MILLION OF IT DOWN.

AND NEXT SLIDE, PLEASE.

AND I THINK, AS WE MENTIONED IN THE LAST MEETING, UH, WE ONLY NEEDED TO USE WHAT HUNDRED AND 25,000 OF THAT 1.3, 5 MILLION, BECAUSE THE OPERATING RESULTS STARTED IMPROVING MUCH BETTER THAN WE ANTICIPATED.

SO THAT $555,000 BALANCE HAS BEEN RETURNED BACK TO THE DEPARTMENT OF AVIATION AS OF MARCH 11TH, 2022 X LIKENESS.

EXCUSE ME, MR. THOMAS.

SO, UM, WHAT IS THE PROCESS FOR REPAYING THE 824,000? SO THERE IS THE FIRST PAYMENTS DON'T REALLY START, UH, AND IT'S ONLY, IT'S AN INTEREST ONLY PAYMENT DOESN'T START TILL 2024, BUT THERE IS A CLAUSE IN THERE

[01:00:01]

SO WHAT WE WILL DO IS, YOU KNOW, IN THE NEXT COUPLE OF MONTHS, WE WILL LOOK AT OUR CASH BALANCES, WHETHER THERE IS ENOUGH OPERATING RESERVES.

AND THEN WE WOULD GO BEFORE THE ABLE BOARD TO GET APPROVED, UH, TO START MAYBE SEEING WHETHER WE CAN GET SOME OF THAT, UH, MONEY BACK EARLIER THAN WE NEED.

AND THAT'S A LOAN TO THE AIRPORT.

THAT'S A LOAN FROM THE AIRPORT TO EXTERNAL, UM, TO THE CITY.

OKAY, THANK YOU.

SO THIS IS AN UPDATE REGARDING THE GRANT AGREEMENT.

UM, UH, NEXT SLIDE, PLEASE.

SO AS YOU KNOW, YOU KNOW, DURING THE PANDEMIC, UH, THE AIRPORT HAD TO FUND THE DEBT SERVICE RESERVE ON DEFICIENCY OF ABEL, UH, BECAUSE ABEL WAS NOT ABLE TO MAKE THE DEBT PAYMENTS AT THAT TIME.

SO, UH, THERE WERE THREE DEBT PAYMENTS THAT, UH, THE AIRPORT HAD TO SUPPORT ABLE WITH.

UH, THE FIRST ONE WAS OCTOBER 1ST, 20, 20, 20, 20, AND THEN APRIL 1ST, 2021 AND OCTOBER 1ST, 2021.

SO A TOTAL OF ABOUT $4.8 MILLION, UH, THAT WAS TRANSFERRED TO THE DEBT SERVICE RESERVE FUND TO BE ABLE TO MAKE THE DEBT SERVICE PAYMENT, UH, FOR AVA.

UM, NOW IN THE BUDGET WE HAD, YOU KNOW, UM, BUDGET AT THAT, THAT WE MIGHT BE EXPECTED TO MAKE THE, UH, APRIL 1ST 20, 22 PAYMENT.

BUT AS YOU CAN SEE FROM THE OPERATING RESULTS THAT WASN'T NECESSARY.

SO THERE'LL BE, THERE WAS NO NEED TO, UH, SUPPORT THE SUPPORT ABEL, UH, WITH A, A, A TRANSFER TO THE DEBT SERVICE RESERVE FUND BECAUSE ALL THE DEBT SERVICE PAYMENT WAS MADE OUT OF APRIL, AND THERE WAS SUFFICIENT CASH IN THE DEBT SERVICE FUND TO BE ABLE TO MAKE THE APRIL 1ST PAYMENT.

AND LIKEWISE FOR THE OCTOBER 1ST, UH, 2022, UH, PAYMENT, WHICH IS ACTUALLY A PRINCIPAL AND INTEREST PAYMENT OF $2.2 MILLION, WE EXPECT THAT ABLE TO HAVE SUFFICIENT FUNDS TO MAKE THAT PAYMENT TO OUT OF THE DEBT SERVICE FUND.

AND, UH, THE AIRPORT NOT HAVE TO PROVIDE, UH, THE SUPPORT UNDER THIS GRANT AGREEMENT GOING FORWARD.

SO THAT'S REALLY GOOD NEWS.

UM, AND, AND THE RECOVERY HAS HAPPENED KIND OF GO FASTER AND THE PERFORMANCE OF THE HOTEL HAS BEEN BETTER THAN WE ANTICIPATED, UH, SO FAR.

SO THAT'S GOOD NEWS.

SO, LASTLY, UM, I JUST WANT TO GET TO MENTION, HERE IS ONE EVENT THAT TOOK PLACE, UH, JUST A COUPLE OF WEEKS AGO OR LAST WEEK IN FACT, WAS, UH, THE AIRPORT RECEIVED AN UPGRADE IN OUR, OUR, UH, RATINGS FROM SMP.

AND, UM, WITH THAT UPGRADE, THE ABLE BONDS ALSO RECEIVED THIS UPGRADE FROM A MINUS TO A, UH, ALSO FROM MISS A BEAT.

UM, AND THE, AND THE REASON FOR THAT IS BECAUSE OF THE SURPLUS NET REVENUES THAT, UH, THE AIRPORT IS ABLE TO PROVIDE TO ABEL AND THE IMPROVEMENT IN THE PERFORMANCE OF THE AIRPORT.

CAUSE SO, UM, THAT'S ALL I HAD.

I THINK I'M GOING TO HAND IT OVER TO TRACY.

UM, IF YOU HAVE ANY QUESTIONS, PLEASE LET ME KNOW.

THANK YOU, RASHID.

AND IN ADDITION TO THE OPERATING AND FINANCIAL RESULTS, WHICH THE, UM, MANAGEMENT COMPANY ENABLED CORPORATION ALONG WITH AIRPORT STAFF HAS BEEN, UM, WORKING VERY HARD TO, TO DO WHAT WE NEEDED TO DO TO GET THE REVENUES UP IN THE OPERATING, UM, SUSTAINABILITY FOR THE HOTEL.

UM, YOU MAY RECALL LAST YEAR WE ALSO, UH, REFRESHED AND REVISE THE ARTICLES OF INCORPORATION, THE BYLAWS.

WE INSTITUTED A NEW BOARD OF DIRECTORS, UM, AND, UH, HAD BEEN WORKING ON THE GOVERNANCE SIDE AS WELL.

SO AS A TEXAS NONPROFIT PUBLIC.

SO THE CORPORATION, WHILE WE HAVE, UH, ABEL HAS ITS OWN BOARD OF DIRECTORS THAT MANAGES THE ORGANIZATION, BUT IT IS A FORCE PART OF THE ENTERPRISE OF THE CITY OF AUSTIN.

AND SO WHAT WE TOOK VERY SERIOUSLY WAS WANTING TO MAKE SURE THAT EVERYTHING THAT THE ABL CORPORATION DID ON BEHALF OF THE CITY OF AUSTIN AS EXTENSION OF THE CITY OF AUSTIN, WAS COMPLIANT WITH THE CITY OF AUSTIN EXPECTATIONS, VALUES, PROTOCOLS, POLICIES, AND PROCEDURES.

AND HAS MAY BE AMENDED FROM TIME TO TIME.

SO THE FORD, UM, IN FEBRUARY OF THIS YEAR PASSED WHAT I WOULD CALL HIGH OF A GLOBAL RESOLUTION, UH, TO DEMONSTRATE ABEL'S COMMITMENT TO COMPLY WITH ALL OF THE APPLICABLE RULES OF THE CITY OF AUSTIN.

AND THOSE ARE THE RULES, UH, ORDINANCES REGULATIONS THAT APPLY TO HOOK THAT COULD APPLY TO HOTEL OPERATIONS THAT ARE CURRENTLY IN EFFECT PROMULGATED IN THE FUTURE

[01:05:01]

AND THE STAFF AT THE DEPARTMENT OF AVIATION WILL CONTINUE TO ASSIST THE ABLE CORPORATION AND UNDERSTANDING WHAT NEW ORDINANCE OF FOUR RULES PASSED BY COUNCIL ARE, HOW THEY APPLIED TO THE HOTEL AND HOW WE CAN HOTEL CAN BE COMPLIANT WITH THOSE OBLIGATIONS.

SOME EXAMPLES INCLUDE, UH, THE CITY'S RULES ON THE LIVING WAGE AND A BETTER BUILDER PROGRAM, BECAUSE AS THE HOTEL HAS ANY CAPITAL IMPROVEMENT PROGRAM, THAT'S CONSIDERED A THIRD PARTY DEVELOPMENT AND CERTAINLY AT THE AIRPORT SUBJECT TO THAT BETTER BUILDER PROGRAM.

THESE ARE JUST EXAMPLES.

THEY'RE NOT EXCLUSIVE IN ANY WAY, BUT I HAVE SOME MORE INFORMATION ABOUT A LIVING WAGE.

AND THE NEXT SLIDE, PLEASE.

SO, UM, DON'T NEED TO TELL THIS COMMITTEE, BUT THE CURRENT, UH, CITY OF LIVING WAGE IS, BUT IN, UM, THE ABLE DID APPROVE AN AMENDED 20, 22 OPERATING BUDGET TO IMPLEMENT A WAGE INCREASE AT THE HOTEL.

SO EFFECTIVE AS THE SLIDE SAYS EFFECTIVE FEBRUARY OF THIS YEAR, UH, ALL OF THE WAGES WERE RAMPED UP AT THE, UM, HOTEL TO MEET THE CURRENT, UM, CITY LIVING WAGE.

UM, THEY WERE INCREASED LAST YEAR AND THIS IS THE SECOND INCREASE THAT THE EMPLOYEES HAVE HAD IN ABOUT A ONE-YEAR PERIOD OF TIME FOR THEIR, FOR THEIR BASE PAY.

SO NEXT SLIDE, PLEASE, IN ADDITION TO IMPLEMENTING THE, UM, LIVING WAGE, WE ALSO HAVE GOOD NEWS REGARDING, UH, THE, UH, THANK YOU FOR THE SLIDE FOR, UH, HAVING OUR PROSPERO, WHO IS OUR, UM, HOTEL MANAGEMENT, UH, MANAGEMENT COMPANY UNDER OUR MANAGEMENT AGREEMENT WITH THE ABLE CORPORATION, UM, WORK WITH, UM, UNITE HERE, LOCAL 23 TO ENTER INTO AND ACTUALLY EXECUTE A LABOR PEACE AGREEMENT FOR THE EMPLOYEES, UH, HIRED BY THE MANAGEMENT COMPANY, UM, AND THE, AND THE UNION, UM, THAT, UH, LPA WAS EXECUTED, UH, JUST EARLIER THIS MONTH, APRIL 4TH, 2022.

IT'S CERTAINLY, UM, WAS SUPPORTED BY THE ABL CORPORATION.

AND, UM, WE HAVE CONFIRMED THROUGH OUR LAW DEPARTMENT THAT IT ACHIEVED THE REQUIREMENTS, UM, PASS LAST YEAR OF A RESOLUTION, UM, NOTED HERE ON THIS SLIDE THAT THE ABL CORPORATION, UH, HAVE MANAGEMENT AGREEMENTS THAT, UH, ALLOW FOR LABOR PEACE AGREEMENTS.

AND SO WE WENT ONE STEP BEYOND THAT AND ACTUALLY ENTERED INTO A LABOR PEACE AGREEMENT AS, UH, REFLECTED IN THAT RESOLUTION.

SO NEXT SLIDE PLEASE, MS. THOMPSON, I JUST WANTED TO GO BACK TO THE LIVING WAGE PART.

UM, SO AS I UNDERSTAND IT, FROM THAT UPDATES, THE RESOLUTION I'M COMMITTED TO COMPLYING WITH ALL APPLICABLE RULES OF THE CITY OF AUSTIN, INCLUDING THE CITY'S LIVING WAGE.

UM, DO YOU KNOW IF THAT WAS STRUCTURED IN A WAY THAT IF AND WHEN THE CITY OF AUSTIN INCREASES ITS LIVING WAGE IN THE FUTURE THAT THE HOTEL WOULD AUTOMATICALLY FOLLOW SUIT AND IS CORRECT.

AND DID YOU ALSO COMMIT TO ANY BENEFIT REQUIREMENTS FOR FULL-TIME EMPLOYEES? UM, IF THE CITY OF AUSTIN REQUIRES IT, THEN WE WILL DO THAT.

ABSOLUTELY.

YES.

MA'AM.

UM, PERHAPS SOMEONE FROM THE FINANCE DEPARTMENT CAN CIRCLE BACK ON THAT BECAUSE I KNOW WHAT WE GIVE, I DON'T KNOW WHAT WE REQUIRE BECAUSE WE GIVE THEM TO ALL FULL-TIME CITY EMPLOYEES.

SO I'M NOT SURE IF THERE'S A NUANCE IN THAT WORDING.

UM, AND I WILL CERTAINLY BE PLACED IT VISIT WITH THEM AND REPORT BACK TO YOU.

ON THAT, BECAUSE TO DO THAT, UM, MR. VINO, DO YOU UNDERSTAND MY, MY QUESTION THERE? OKAY, GREAT.

THAT, AND I APOLOGIZE, THERE IS A, UM, UM, THAT I NEED TO MAKE A CORRECTION ON THIS SLIDE BECAUSE WE'RE HERE TODAY TO BRIEF YOU TODAY ABOUT, AND, UH, HAVE A DISCUSSION IF NEEDED ON IT.

PLEASE PROCEED.

UM, NEXT SLIDE PLEASE.

SO WE WANTED TO BRING TO, UM, UM, THE COUNCIL OF, EXCUSE ME, THIS COMMITTEE'S ATTENTION I FUTURE RCA THAT WE WOULD LIKE TO BRING FOR COUNCIL'S CONSIDERATION IN, UH, ON JUNE 16TH, 2022.

SO THE CURRENT HOTEL MANAGEMENT AGREEMENT, UH, FOR PROSPERITY FOR THE HOTEL OPERATION EXPIRES, AS IT SAYS RIGHT HERE ON OCTOBER 31ST, 2022, WE WOULD LIKE TO PROPOSE AN AMENDMENT TO THE HOTEL MANAGEMENT AGREEMENT.

THAT IS A VERY SHORT AMENDMENT, BUT, AND THE HIGHLIGHTS ARE, IT WOULD EXTEND THE TERM TO 2024 AS PROVIDED IN THE PRIMARY AGREEMENT.

THERE'S TWO ONE-YEAR OPTIONS TO RENEW.

SO WE WOULD, UH, GO AHEAD AND EXERCISE THOSE OPTIONS TO EXTEND THE TERM TO 2024.

IT WOULD INCLUDE THE LABOR PEACE OBJECTIVES ESTABLISHED BY THE RESOLUTION PASSED LAST YEAR BY COUNCIL.

AND OF COURSE WOULD INCLUDE THE CITY'S LIVING WAGE REQUIREMENTS AND ALL OF THE OTHER, UM, COMMITMENTS THAT THE BOARD HAS AGREED TO EARLIER ON THIS YEAR.

SO THE SCHEDULE FOR

[01:10:01]

THE AMENDMENT TO THE HOTEL MANAGEMENT AGREEMENT, THERE IS A SCHEDULED ABEL, UH, BOARD MEETING FOR MAY 23RD.

WE KNOW THAT THE CITY COUNCIL HAS TO APPROVE THE MANAGEMENT AGREEMENT EXTENSION BEFORE THE BOARD OF ABLE CAN APPROVE IT.

SO THIS IS REALLY NOT AN APPROVAL.

WE'LL BE REVIEWING THE AMENDMENT, THE MANAGEMENT AGREEMENT WITH THE BOARD LATER IN THE MONTH, GOING TO OUR AIRPORT ADVISORY COMMISSION, UM, AND JUNE 14TH AND TO COUNCIL ON JUNE THE 16TH.

AS I UNDERSTAND, UM, UM, THE RESOLUTION, WE ARE REQUIRED TO MAKE A PUBLIC BRIEFING TO CITY COUNCIL ON, UH, JUNE THE 16TH, UH, AS A COMPONENT OF GETTING APPROVAL FOR THE AMENDMENT TO A HOTEL MANAGEMENT AGREEMENT.

AND, UM, IF THE, AT THIS COMMITTEE HAS A DIFFERENT RECOMMENDATION OR WANTS US TO FOLLOW THE LETTER OF THE LAW UNDER THAT RESOLUTION, WE'RE PLACED TO DO, DO WHAT IT SAYS TO DO.

THE RESOLUTION ALSO INDICATES THAT WE WILL BE ABLE TO WAIT 20 DAYS AFTER APPROVAL BY COUNCIL.

THEY WOULD ACTUALLY ENTER INTO THE APPROVAL FOR THE EXECUTION OF THE MANAGEMENT AGREEMENT AMENDMENT.

AND THAT'S ALL FOR THIS SLIDE.

SO, UM, WE INVITED, UH, MR. GONZALEZ TO JOIN US TODAY TO ANSWER ANY QUESTIONS, AND IF HE'S WILLING, HE CAN PROVIDE SOME COMMENTS ON THE PROGRESS WITH THE LABOR PEACE AGREEMENT OR THE HOTEL OPERATION IN GENERAL, AND WILLIAM PLACED TO TURN THE MIC OVER TO YOU AT THIS TIME.

SURE.

UM, THANKS, TRACY.

UM, IT'S NICE TO SEE EVERYBODY HERE IN THE COUNCIL AGAIN.

UM, SO I'M WILLING GONZALEZ SECRETARY TREASURER FOR UNITE HERE LOCAL 23.

SO I JUST WANT TO GIVE A QUICK UPDATE.

UM, WE HAVE REACHED THE LABOR PEACE AGREEMENT WITH PROSPERA.

UM, THANKS IN LARGE PART TO THE SUPPORT OF THIS COUNCIL.

IT'S VERY MUCH APPRECIATED.

I DO WANT TO RECOGNIZE PROSPERA FOR DOING THE RIGHT THING, SETTING DOWN AND DOING THE RIGHT THING.

UM, WE DO WANT TO RECOGNIZE TRACY AND THE AIRPORT, UH, HER TEAM AT THE AIRPORT.

THEY WERE VERY HELPFUL IN BRING EVERYONE TOGETHER.

UM, AND YEAH, WE'RE IN SUPPORT OF THE, UH, AMENDED OPERATING AGREEMENT.

AND I'M HERE TO ANSWER ANY QUESTIONS IF ANYONE HAS ANY.

THANK YOU, MR. GONZALEZ.

I'M PLEASED TOO, THAT WE'RE ABLE TO MOVE FORWARD WITH THIS AGREEMENT.

UM, I DO HAVE ONE QUESTION FOR MS. THOMPSON, UM, AND I, SO I CAN'T SEE THE REST OF MY COLLEAGUES IF THEY HAVE QUESTIONS TO DIDN'T SEE ANYONE.

SO, OKAY.

SO I'LL ASK THIS QUICKLY AND THEN I WILL, UM, HAND IT OVER TO, TO COUNCIL MEMBER OF .

I WAS JUST WONDERING ON THE, UM, STAFFING CHALLENGE, ARE YOU HAVING STAFFING CHALLENGES AT THE HOTEL CURRENTLY AND HOW YOU ARE HANDLING THEM? UM, I APPRECIATE THAT YOU JUST RAISED THE WAGES TO $15 AN HOUR.

UM, BUT WE'RE TRYING TO GAUGE WHETHER THAT IS SUFFICIENT IN THIS MARKET AND, AND HOW, HOW TO DEAL WITH THAT FOR A HOST OF, UM, STAFFING CHALLENGES WE HAVE IN THE CITY.

SO I'D LOVE TO HEAR, UM, HOW YOU'RE EXPERIENCING IT AT ABEL.

SURE.

THANK YOU VERY MUCH.

SO THE SHORT ANSWER OF COURSE, IS YES THERE STAFFING, AS YOU MENTIONED, UH, MAYOR PRO GENDERS THERE'S CHALLENGES EVERYWHERE.

SO WHAT THE MANAGEMENT COMPANY IS DOING IS, UM, THEY ARE STAFFING, UM, FOR THE PEAK PERIODS, LIKE, LIKE EVERYBODY DOES MANAGING, MANAGING THEIR STAFFING LEVELS.

I CAN REPORT, I CAN, UH, ASK PROSPERO IF THEY'RE ACTUALLY ENGAGING IN ANY JOB FAIRS.

UM, BUT, UM, CAUSE I DON'T KNOW THAT KNOW THAT, BUT I DO KNOW THEY ARE STAFFING SHORTAGES.

IT HAS NOT IMPACTED THE ABILITY FOR THEM TO, UH, BOOK OUT THE ROOMS. SO IT HASN'T BEEN TO THE EXTENT THAT WE AREN'T ABLE TO, TO AWARD ROOMS. SO I'M SURE INFLUENCED THEM OVER TIME AND THEY'RE STRETCHING YOUR STAFF'S PRETTY THIN.

UM, SO LET ME REPORT BACK TO YOU ON IF THEY'RE DOING ACTUAL, UM, LITERAL OUTREACHES.

I KNOW THAT THE LABOR PEACE AGREEMENT, UM, HAS, UM, A PROVISION IN THERE THAT SAYS, AS I HAVE VACANCIES AT THE AIRPORT, THEY COORDINATE WITH THE UNION TO ASSIST IN FILLING THOSE VACANCIES.

AND SO MAYBE WHAT WE CAN DO IN THE FUTURE IS REPORT BACK TO YOU ABOUT HOW AS VACANCIES COME UP, HOWEVER, THERE FOR DATING WITH THE UNION IN DOING THE OUTREACH TO FILL THOSE VACANCIES.

SO I FEEL ALLOW ME THE OPPORTUNITY TO GET MORE EXPLICIT INFORMATION, TO ANSWER THAT QUESTION.

I'LL BE IN PLACE TO DO THAT.

ABOUT OUR, HOW THE CREDIT RATING WENT UP ON THE ABLE BONDS LOVE HEARING THAT WE HAD MORE REVENUE THAN ANTICIPATED.

I THINK THAT'S, YOU KNOW, HELPFUL SPECIFICALLY FOR UNDERSTANDING WHAT'S GOING ON AT ABLE, BUT ALSO AS WE TRY TO PIECE TOGETHER, SOME OF THE CHOICES THAT WE HAVE BEFORE US OVER THE NEXT SEVERAL MONTHS, UM, THAT'S HELPFUL INFORMATION FOR US AS WELL.

COUNCILMEMBER QUANTAS.

THANK YOU CHAIR.

WELL, THANK YOU SO MUCH MS. THOMPSON, AND I'M AN AVIATION TEAM AS WELL AS MR. GONZALEZ FOR JOINING US TODAY.

THIS IS LOTS OF GOOD NEWS, YOU KNOW, LOVED HEARING

[01:15:01]

SO THAT'S GONNA HELP US WITH THOSE, UM, REPAYMENT REPAYMENTS, UH, AND THEN ESPECIALLY LOVE THAT THE LABOR PEACE AGREEMENT HAS BEEN MOVING FORWARD AND THAT THERE WILL BE AN AMENDMENT COMING FORWARD TO COUNCIL IN A FEW MONTHS TO EXTEND THAT AGREEMENT TO 2024.

UM, AND APPRECIATE THAT WE DID RAISE THE LIVABLE WAGE TO 15.

I'M A BIG PROPONENT OF INCREASING THAT EVEN HIGHER.

WE'D LOVE TO SEE US HIT 22 COURSE.

WE'LL BE HAVING THAT CONVERSATION, UM, LATER THIS YEAR, HOPEFULLY.

SO JUST WANTED TO THANK YOU ALL FOR JOINING US TODAY AND PROVIDING THIS REALLY IMPORTANT INFORMATION.

AND I, AND I APPRECIATE THE HARD WORK THAT IS BEING DONE, UH, BETWEEN ABEL AND THE AVIATION DEPARTMENT.

THANK YOU, COUNCIL MEMBER AND ABSOLUTELY IT IS GREAT TO HAVE THE GOOD NEWS AFTER, YOU KNOW, HAVING TO NAVIGATE THE SHOALS OF, OF COVID WITH, WITH ABEL AND ALSO, UM, APPRECIATE, UM, AS MR. GONZALEZ MET MENTIONED, UM, THE COOPERATION OF PROSPERA AND THE ABLE BOARD AND HELPING US TO, TO BRING THE LABOR PEACE AGREEMENT AND THE INCREASES IN WAGES, UM, COUNCIL MEMBER TOVO, OR COUNCIL MEMBER KELLY.

DID YOU HAVE ANY QUESTIONS OR COMMENTS? NOPE.

FIVE, UM, I WILL INVITE OUR NEW CHIEF, UH, ROBERT LEFKOWITZ, UH, FROM EMS TO COME SPEAK TO US.

WELL, THANK YOU ALL FOR JOINING US, UH, THIS MORNING.

WE APPRECIATE SEEING YOU, UM, NOW ITEM

[5. Briefing from Emergency Medical Services on Fiscal Year 2022 budget rider and billing.]

UM, THIS IS A REPORT BACK ON A BUDGET RIDER THAT I HAD, UM, DURING THE BUDGET, WHICH WAS A FOLLOW-UP TO A EQUITY DISPATCH EQUITY EFFICIENCY STUDY, UM, THAT WE HAD WORKED ON IN PRIOR YEARS THAT CAME BACK AND SUGGESTED THAT THERE WERE SOME REALLY LARGE OPPORTUNITIES FOR REVENUE GROWTH AND REVENUE IMPROVEMENTS WITHIN OUR EMS SYSTEM.

IF WE COULD FIX THE BILLING SYSTEM.

AND AS PART OF THAT RIDER, THERE WAS A REQUIREMENT TO COME BACK TO AUDIT AND FINANCE.

UM, SO WE WILL WELCOME THEM FIRST TIME TO OUR, OUR PODIUM FRAUD AND FINANCE CHIEF LUCK.

WHO'S GOING TO PRESENT TO US, UM, WHERE THIS PROCESS IS AT.

THANK YOU, MAYOR PRO TEM AND COUNCIL MEMBERS.

I APPRECIATE THE OPPORTUNITY TO BE ABLE TO SPEAK TO YOU ABOUT SOME OF THE PROGRESS WE'VE MADE ON, UM, OUR BILLING PROCESSES AND OUR REVENUE CYCLE.

UM, THE PAST, UH, JUST BRIEFLY, I'LL JUST SAY OVER THE PAST MONTH THAT I'VE BEEN HERE, UM, AS I TAKE A LOOK AT A LOT OF DIFFERENT AREAS WITHIN THE EMS DEPARTMENT, CERTAINLY A LOT OF THINGS TO LEARN, BUT, UH, IT IT'S VERY CLEAR TO ME AS I WALKED INTO THIS DEPARTMENT THAT THERE'S SIGNIFICANT OPPORTUNITIES IN THE REVENUE CYCLE DEPARTMENT.

UM, AND I DO BELIEVE THAT, UH, SOME OF THE INITIATIVES THAT WE'VE STARTED THUS FAR ARE GOING TO BEAR FRUIT FOR US AND WE WILL BE ABLE TO IMPROVE OUR REVENUE.

UM, AND I LOOK FORWARD TO WORKING WITH THE TEAM TO CONTINUE THIS PROCESS.

TO TAKE A LOOK AT, UH, BOTH OUR DISPATCH, UH, DATA, AS WELL AS OUR ELECTRONIC MEDICAL RECORDS.

AS PART OF THE RIDER FROM THIS YEAR'S BUDGET, THERE WERE TWO SPECIFIC ITEMS, UH, PARTS TO THE FIRST ITEM.

THE FIRST WAS ADDRESSING THE EXISTING EMS BACKLOG OF CLAIMS. UM, SO THERE WAS A SIGNIFICANT BACKLOG OF CLAIMS GOING INTO THIS THAT WERE IDENTIFIED BY THE DISPATCH EQUITY AND OPTIMIZATION REPORT.

WE DO CONTINUE TO HAVE A BACKLOG IN THOSE CLAIMS. UM, WHAT WE HAVE DONE IN THE INTERIM IS WE HAVE BROUGHT ON A VENDOR TO ASSIST US IN CODING.

THOSE CLAIMS. WE STARTED WITH A SMALL NUMBER OF CLAIMS THAT THEY WERE GOING TO CODE FOR US JUST THE 11,000 THAT WE WERE ABLE TO, UH, QUICKLY ESTABLISH THAT RELATIONSHIP THAT BEGAN BACK IN FEBRUARY.

THEY DO CONTINUE TO DO THAT, AND WE HAVE HAD THUS FAR SOME SUCCESS.

OUR PLAN MOVING FORWARD IS TO EXPAND THAT CONTRACT, TO HAVE THEM CONTINUE TO DO ADDITIONAL CLAIMS FOR US, UH, TO THE TUNE OF THE FULL 77,000 CLAIMS THAT, UH, THAT WE ANTICIPATE 77,000 CLAIMS. WE'RE GOING TO BE ASKING FOR THEM TO DO THAT WILL REQUIRE US MOVING FORWARD.

IF WE TAKE THAT INTO FISCAL YEAR 23 TO GET TO ADDITIONAL COUNSEL AND BUDGETARY APPROVAL, HOWEVER, WE DO HAVE THE FUNDS FOR US TO BE ABLE TO BEGIN THAT PROCESS IMMEDIATELY.

WE DO ANTICIPATE THAT WE WILL HAVE THAT BACKLOG COMPLETED BY OCTOBER OF 2022, ALTERNATIVE TO THAT IS LOOKING AT OTHER OPPORTUNITIES FOR US WITHIN THE STAFFING OF THE BILLING DEPARTMENT.

WE ARE UNDERSTAFFED BASED ON NATIONAL STANDARDS.

AND SO AS WE PREPARE FOR THE FISCAL 23 BUDGET, WE ARE VALUING BOTH OF THOSE OPTIONS AND WE WILL BE BACK WITH MORE INFORMATION ON THAT FROM A BILLING PROCESS PERSPECTIVE, I CAN SAY.

AND REGARDLESS OF ANY AGENCY, YOU GO TO, THE NUMBER ONE OPPORTUNITY FOR IMPROVEMENT IS LOOKING AT A COMPLETE COMPLETENESS AND TIMELINESS OF DOCUMENTATION.

UM, THAT IS A SIGNIFICANT INDUSTRY-WIDE PROBLEM.

THERE ARE VARIOUS OPPORTUNITIES THAT WE HAVE IN ORDER TO ADDRESS THAT, THAT WE HAVE ALREADY BEGUN.

UM, THE FIRST IS THROUGH PROVIDER EDUCATION AND ENSURING THAT THE PROVIDERS UNDERSTAND THE IMPORTANCE OF TIMELY DOCUMENTATION.

AND SO WE HAVE BEGUN THAT RE ADJUSTING TIME EDUCATION, IF YOU WILL, WHERE WE'RE UTILIZING OUR FRONTLINE SUPERVISORS, PARTICULARLY THOSE DIVISION CHIEFS THAT WERE APPROVED IN, UH, THIS YEAR'S BUDGET TO BE OUT THERE AND WORKING WITH OUR FRONTLINE STAFF.

IN ADDITION, WE DID MEET WITH AN EXISTING VENDOR THAT WE HAVE ON APRIL 19TH THAT DOES, UH, DATA ANALYTICS AND IS ABLE TO DRILL INTO OUR SOFTWARES

[01:20:01]

THEY HAVE ABILITY TO BUILD OUT FOR US REAL TIME MONITORING TO ENSURE THE DOCUMENTATION IS COMPLETED AND LOOK FOR POTENTIAL ERRORS.

UH, GIVEN THE SCHEDULE OF THE EXISTING WORKFORCE, THE 24 72, IF THERE IS SOME SORT OF AN ISSUE WITH THE DOCUMENTATION BEING COMPLETED, IT CAN BE CHALLENGING FOR US TO GET THAT BACK WITHIN A TIMELY MANNER.

SO THIS WILL ALLOW THE TEAM TO BE ABLE TO SEE IN REAL TIME WHAT'S GOING ON, WHETHER IT BE A PROVIDER ERROR OR AS IT OFTEN IS, IT'S A TECHNICAL ERROR THAT WORKED VERSUS MOBILE.

AND THE ABILITY TO UPLOAD CHARTS FROM THE FIELD SOMETIMES CAN BE CHALLENGING AND THEY GET STUCK IN CYBERSPACE.

SO WORKING THROUGH THAT PROCESS IN ORDER FOR US TO BE ABLE TO, UH, PROVIDE THAT FEEDBACK TO THE CREWS IN REAL TIME.

IN ADDITION, WE WERE ASKED TO TAKE A LOOK AT THE COST OF SERVICE THAT WAS UPDATED.

SO THE PREVIOUS COST OF SERVICE WAS $1,139.

THE NEW COST OF SERVICES, $1,783 AND 63 CENTS WITH REGARDS TO FEES, THEY DO REMAIN AT THE EXISTING COST OF SERVICE.

WE ARE EVALUATING WHAT IMPACT INCREASING THOSE FEES WOULD BEING.

WE PLAN TO WORK WITH THE EQUITY OFFICE AND OTHERS, AS WE LOOK AT WHAT THE FUTURE WILL BE FOR OUR AMBULANCE FEES.

UH, IN ADDITION, UH, THE RIDER ASKED FOR US TO TAKE A LOOK AT SOME OF THE OPTIMIZATION OPPORTUNITIES THAT WERE PRESENTED IN THE DISPATCH OPTIMIZATION OR EQUITY AND OPTIMIZATION REPORT.

WE DID ADDRESS SEVERAL OF THOSE.

THE FIRST OF THEM WAS RECOMMENDATION 14, WHICH WAS TO REVISE THE OFFICE OF TRAVIS COUNTY EMS CHARITY CARE POLICY.

THAT POLICY WAS UPDATED AND APPROVED ON SEPTEMBER 2ND, 2021.

UM, THERE'S A FEW THINGS AROUND THIS, HISTORICALLY, THIS, UH, THIS POLICY WAS ONLY, UH, EXTENDED TO FOLKS OR TO INDIVIDUALS EXPERIENCING HOMELESSNESS AND FOLKS WITH NO STATE.

WE DID ADD 10 ADDITIONAL CATEGORIES OF WHICH I COULD OUTLINE FOR YOU IF YOU, IF YOU SO DESIRE, BUT IT DOES, UH, LOOK AT OTHER INDIVIDUALS WHO MAY NOT HAVE THE CAPACITY OR TO PAY OR THE CAPACITY TO UTILIZE THAT WE LOOKED AT, UM, SOME OF THE OTHER AREAS OF PUBLIC ASSISTANCE THAT ARE OUT THERE AND IDENTIFY AND WORK TO IDENTIFY WHO WOULD BE POTENTIAL, UH, IN POTENTIALLY NEED OF CHARITY CARE.

THIS DID BEAR SOME FRUIT FOR US.

THE CLAIMS THAT WE SUBMITTED IN 2021 WERE SEVEN TIMES THE NUMBER OF CLAIMS THAT WERE SUBMITTED IN 1920, UH, IN 19 TO 20, WE SUBMITTED ABOUT $1.7 MILLION IN CHARITY CARE CLAIMS THIS MOST RECENT YEAR, WE SUBMITTED OVER $15 MILLION IN CLAIMS. IT'S CHALLENGING FOR US TO IDENTIFY SPECIFICALLY WHAT THE CHANGE IN THE REIMBURSEMENT WILL BE FROM THE STATE, GIVEN THAT, UH, THE POT IS BASED ON THE TOTAL NUMBER OF COMPLAINTS CLAIM SUBMITTED STATEWIDE, BUT ON THOSE $1.7 MILLION IN CLAIMS, WE RECEIVED $1.2 MILLION IN PAYMENTS, OR ABOUT 66% OF OUR CLAIM OF OUR PAYMENTS.

SO CONSERVATIVELY ORIENTED, WE ARE ANTICIPATING ABOUT $5 MILLION IN PAYMENTS, WHICH WOULD BE ABOUT A $3.8 MILLION INCREASE, BUT IT COULD BE SIGNIFICANTLY HIGHER THAN THAT, DEPENDING ON, UH, WHAT HAPPENS IN THE REMAINDER OF THE STATE.

WE ALSO LOOKED AT OUR RECOMMENDATION 13 RECOMMENDATION, 15, UH, STARTING WITH RECOMMENDATION 13, REVEALING THE BILLING PRACTICES TO IDENTIFY OPPORTUNITIES, TO CAPTURE REVENUE FOR TREATMENT AND NO TRANSPORT AND ALLOWABLE ALS SERVICES.

UM, AND WITH RECOMMENDATION 15 REVIEWING COMMERCIAL PAYMENT DATA REGARDING CHARGES AND PAYMENTS BY PROCEDURE CODE FOR COMMERCIAL PAYERS.

WHAT WE'VE DONE IS WE'VE ENGAGED WITH A NATIONAL BILLING CONSULTANT, NATIONAL REVENUE, SECOND CONSULTANT, PAGE, WOLF, BERGEN WORTH.

UH, THEY BEGAN THEIR ASSESSMENT OF US IN SEPTEMBER 9TH, 2021.

THEY WERE ONSITE IN THE LAST WEEK OF MARCH OF 2022, MARCH 30TH, THE 31ST 2022.

WE DO ANTICIPATE THAT THEY WILL HAVE A FINAL REPORT FOR US BY THE END OF MAY, WHICH WILL PROVIDE US WITH, UM, SOME SPECIFIC RECOMMENDATIONS.

THAT BEING SAID, WE DID MEET WITH THEM.

WE DID IDENTIFY JOINTLY SOME COMMON THEMES THAT ARE SEEN NOT ONLY IN THIS AGENCY, BUT IN OTHER EMS AGENCIES.

UM, AND WE HAVE BEGUN ADDRESSING SOME OF THOSE WHILE WE WAIT FOR THE REPORT SPECIFICALLY, THERE WAS DISCUSSION AROUND THE APPROPRIATENESS OF ALS LEVEL SERVICES AND THE RIDER.

UM, WE HAVE ALREADY BEGUN THAT PROCESS.

WE HAVE MET WITH OCWEN BEGINNING IN MARCH, MARCH 15TH, REVIEW OUR EXISTING DISPATCH CRITERIA TO IMPROVE THE DEPLOYMENT OF THOSE SERVICES.

UM, THIS PROCESS REQUIRES US TO GO BACK AND LOOK IT OVER 1700 DIFFERENT WAYS THAT WE DISPATCH OUR AMBULANCES AND CLINICALLY REVIEW THEM TO IDENTIFY THOSE OF WHICH BOTH EMS AND THE MEDICAL DIRECTOR IDENTIFY IS REQUIRING ALS RESOURCES BECAUSE THAT PROCESS WILL TAKE US SEVERAL MONTHS, BUT WE JOINED DISSIPATE BY MID SUMMER, HAVING THAT COMPLETED.

WE'VE HAD, UH, REGULAR WEEKLY MEETINGS WITH AQUA TO IDENTIFY THOSE PROCESSES.

IN ADDITION, I WILL BE MEETING WITH PCG CONSULTING, WHICH IS THE AUTHORS OF THE DISPATCH OPERATING AND REPORT ON MAY 4TH TO REVIEW THE OVERALL REPORT SO THAT I CAN UNDERSTAND FROM THEM FIRSTHAND, UM, WHAT THEIR THOUGHTS WERE BEHIND SOME OF THE INFORMATION THAT THEY PROVIDED.

UM, WE WILL ALSO BE DISCUSSING THE CHARITY CARE AND OTHER STATE PROGRAMS AND SEEING IF THERE'S OTHER THINGS THAT WE NEED TO ADDITIONALLY ADDRESS WITH THOSE PROCESSES.

NEXT SLIDE, PLEASE WITH THAT.

UH, ANY QUESTIONS? THANK YOU SO

[01:25:01]

MUCH.

UM, CHIEF FLUB GRITS, UM, YOU KNOW, I BROUGHT THIS BUDGET RIDER FOLLOWING THE DISPATCH EQUITY AND OPTIMIZATION STUDY, WHICH IS WHAT'S REFERENCED WITH THE RECOMMENDATIONS.

SO THERE'S BOTH THE BUDGET WRITER THAT HAS NUMBERS AS WELL AS THE RECOMMENDATIONS FROM THE DISPATCH EQUITY.

SO IF YOU'RE TRYING TO SEE WHERE THOSE RECOMMENDATIONS ARE, YOU NEED TO GO TO THE DISPATCH EQUITY, UM, STUDY EFFICIENCY STUDY.

UM, THIS IS AN EXTREMELY IMPORTANT EFFORT ON THE PART OF THE CITY.

UM, YOU TAKE A LOOK AT THE GRAPHS THAT ARE IN OUR FINANCIAL FORECAST AND WE ARE, YOU KNOW, FORECASTING DEFICITS THREE, FOUR YEARS OUT THAT JUST GET PROGRESSIVELY BIGGER.

UM, THIS IS A RARE OPPORTUNITY FOR US TO IMPROVE OUR REVENUE IN A WAY, UM, THAT WE CAN ACCOMMODATE.

UM, THOSE ARE UNABLE TO PAY.

A LOT OF THESE BILLS ARE PLAYED BY INSURANCE.

THERE ARE CHALLENGES THAT WE SAW WITHIN THE BILLING SYSTEM WHERE WE WERE NOT BILLING PROPERTY PROPERLY.

THERE WERE OPPORTUNITIES THE WAY THE STATE HAD RECENTLY CHANGED ITS STRUCTURE WITHIN CHARITY CARE.

UM, TO, TO, TO THE TUNE OF TENS, IF NOT DOZENS OF MILLIONS, OF DOLLARS OF REVENUE THAT WE COULD BE RECOUPING, WHICH WOULD FILL MUCH OF THE HOLES THAT WE HAVE, BECAUSE THEY'RE NOT CURRENTLY IN THOSE FORECASTS, SOME OF THEM MAY BE.

AND, AND SO, UM, YOU KNOW, AS WE OPERATE UNDER A REVENUE CAPS, UM, THIS IS AN EFFORT THAT, YOU KNOW, AS A NEW CHIEF, I WANT YOU TO BE REALLY LEANING INTO.

UM, AND, UM, TO OUR CFO, I ALSO WANT YOU TO BE LEANING INTO THIS BECAUSE, UM, THIS IS REALLY A RARE OPPORTUNITY, UM, FOR US TO ADDRESS THIS, THIS SHORTFALL, UM, YOU ENUMERATED SEVERAL OF THE DIFFERENT WAYS.

AND I THINK, UM, SOME OF THOSE ARE COMING IN HIGHER THAN WHAT WERE ANTICIPATED IN THAT DISPATCH EQUITY STUDY.

I BELIEVE THE, THE JUMP IN THE COST OF SERVICE STUDY, UH, WAS CONSIDERABLY MORE.

I THINK THEY HAD SAID IT WAS GOING TO BE A 25% JUMP.

IT'S CONSIDERABLY MORE NOW WHERE WE LAND AND HOW QUICKLY WE GET THERE, WE'LL HAVE TO DECIDE.

AND YOU CAN'T NECESSARILY COUNT THOSE REVENUES IN THIS BUDGET BECAUSE THERE'S STILL SOME UNCERTAINTY.

YOU UNDERSTAND THAT, BUT IT IS AN EXTREMELY PROMISING WAY FORWARD FOR US TO, TO ADDRESS THESE THINGS.

SO I HOPE THAT YOU WILL, YOU WILL LEAN INTO THOSE.

UM, I DO HAVE SEVERAL QUESTIONS, BUT I WANTED TO SEE IF MY COLLEAGUES HAD ANY SPECIFIC QUESTIONS BEFORE I DIVE IN, BECAUSE I HAD AN OPPORTUNITY TO TALK TO TWO FLOOD GRITS YESTERDAY.

JUST START THEN.

UM, SO SEEING NOBODY ELSE HAS COMMENTS OR QUESTIONS HAS QUESTIONS.

I KNOW THAT CAUSE MY FRIEND JUST WANTS TO MAKE A COMMENT.

UM, SO THE CURRENT BACKLOG, SO THE ORIGINAL BACKLOG WAS A 77,000 CLAIMS AND YOU CONTRACTED OUT FOR 10,000 OF THOSE AND YOU IMPROVE THE STAFFING.

WHERE ARE WE NOW IN TERMS OF THE BACKLOG? WE HAVE 21,000 CLAIMS. OUTSTANDING.

AND, UM, AS WE WERE LOOKING AT THOSE BACKLOG ARE, HAVE WE, HAVE WE CLEARED A BACKLOG? AND NOW IT'S NEW ONES THAT ARE THE 20,001,000, OR ARE THEY OLD ONES THAT ARE THE TWINS IN OUR CURRENT STATE WITH THE CURRENT EXISTING CONTRACT, WE ARE NOT KEEPING UP MOVE FORWARD WITH THIS NEW CONTRACT FOR THEM TO PICK UP ADDITIONAL CLAIMS. WE DO ANTICIPATE WE WILL BE ABLE TO PICK UP THAT BACKLOG AND COMPLETE IT BY OCTOBER.

5 MILLION IS ONE THIRD, NOT 66%.

UM, AND I DON'T KNOW THAT YOU'RE GOING TO HAVE THE ANSWER TO THIS QUESTION.

SO I WOULD ASK, UM, FINANCE, IF, UM, SOMEONE CAN WALK THROUGH WITH ME OUTSIDE OF THIS MEETING, WHAT WAS CAPTURED IN THE FORECAST IN TERMS OF ASSUMPTIONS AND WHAT WASN'T, UM, I DON'T EXPECT YOU TO KNOW THAT ON THE FLY, BUT I WOULD LIKE TO, TO DIVE INTO THAT, UM, SOME MORE, UM, AND THEN THE, IN TERMS OF THE, SO WE'LL GET THE BACKLOG DONE BY OCTOBER.

WHAT ABOUT THE BROADER BILLING CHANGES AND DOCUMENTATION CHANGES AND OTHER THINGS, WHEN ARE, WHEN ARE YOU ANTICIPATING THAT OR DO YOU NEED TO SEE THE REPORT BACK FROM THE, I THINK IT'S GOING TO BE KEY FOR US TO SEE THE FULL REPORT FOR PAGE WILL FRIGGEN WORTH SOME OF THOSE INITIAL PIECES THAT WE HAVE BEGUN WORKING ON.

I THINK THAT WE WILL SEE SOME IMMEDIATE SUCCESSES, UM, GIVEN SOME OF THE EDUCATION WE'RE PROVIDING TO OUR STAFF AND TO OUR DIVISION CHIEFS, UM, MOVING FORWARD INTO NEXT YEAR INTO 2023.

AND WE MAY EVEN BE ABLE TO START A BIT EARLIER.

I THINK FROM A CONTINUING EDUCATION STANDPOINT, A LOT OF WHAT WE DO IS AROUND CLINICAL SERVICES AND IT'S IMPORTANT FOR US AND PROBABLY SLIGHTLY OVERDUE FOR US TO REALLY BE DOING SOME DOCUMENTATION EDUCATION AND PROVIDE THAT TO OUR STAFF.

AND SO I THINK REGARDLESS OF WHETHER THAT'S AN ADDITION OR A REALLOCATION OF OUR EXISTING CONTINUE EDUCATION, WE WILL SEE THAT MOVING FORWARD, UM, THROUGHOUT 2022.

AND I ANTICIPATE THAT WE'LL SEE SOME IMPROVEMENT IN DOCUMENTATION BY THE END OF THIS YEAR.

UM, AND HOW MUCH A DISH.

SO YOU SAID THAT THREE WOULD BE 15 MILLION IN CLAIMS, AND THEN WE WOULD BE ANTICIPATING 5 MILLION BECAUSE THERE'S UNCERTAINTY WITH HOW THE STATE WILL HANDLE THE CLAIMS. UM,

[01:30:01]

I UNDERSTAND WE HAVE TO BE, WE HAVE TO BE CONSERVATIVE.

I JUST, I JUST WANT TO UNDERSCORE AGAIN HOW MUCH MONEY THERE IS IN THIS.

IF WE FIX IT, IT IS EXTREMELY, EXTREMELY IMPORTANT.

IF WE WANT TO BE ABLE TO INCREASE WAGES IN OUR PUBLIC SAFETY DEPARTMENTS, IF WE WANT TO, AS THE BUDGET RIDER SAYS, UM, ACHIEVE 12% STAFFING.

UM, THIS IS THE MONEY THAT ALLOWS US TO DO THOSE THINGS AND ABSENT THIS MONEY.

IT'S GOING TO BE THAT MUCH HARDER.

AND SO I THINK WE REALLY NEED TO BE LEANING INTO THIS WHILE DOING IT IN A WAY THAT PROTECTS THE MOST VULNERABLE, UM, IN OUR, IN OUR COMMUNITY, BY CHANGING THE CHARITY CARE THING, NOBODY GOT BILLED MORE, YOU KNOW, WE JUST GOT REIMBURSED FOR STUFF WE COULDN'T BILL FOR BEFORE WHERE WE WEREN'T, WEREN'T GETTING, GETTING PAID.

NOW THAT WAS A SHORT-LIVED CHANGE IN STATE LAW THAT WE HAD TO CATCH UP TO.

BUT IT'S STILL AN OPPORTUNITY THAT I, I DO BELIEVE THAT THERE ARE SIGNIFICANT OPPORTUNITIES FOR US IN THE REVENUE CYCLE AREA.

UM, AND I AM EXCITED TO SEE WHAT WE CAN PROVIDE AND PRODUCE MOVING FORWARD.

UM, I THINK THAT MANY OF THESE OPPORTUNITIES ARE, UM, FOR LACK OF A BETTER TERM, SOME LOW HANGING FRUIT THAT WILL WE'LL QUICKLY BE ABLE TO, TO, TO BENEFIT US.

HOWEVER, I THINK THERE ARE OTHER AREAS WHERE IT IS GOING TO TAKE US A LITTLE BIT OF TIME TO REALLY FULLY UNDERSTAND THE PROCESS.

BUT AS YOU'RE LOOKING IN THE COMING YEARS, AS WE PROJECT OUT, I THINK IT IS SAFE TO SAY THAT WE WILL BE ABLE TO IMPROVE THE REVENUE CYCLE SIGNIFICANTLY.

AND THERE, THERE IS A, THERE IS A, YOU KNOW, I WANT TO UNDERSCORE FROM MY COLLEAGUES THAT THERE IS A SIGNIFICANT LAG ON ALL OF THIS IN TERMS OF WHAT WE CAN BUDGET FOR, BECAUSE WE HAVE TO SEE HOW THE MONEY COMES THROUGH.

IF YOU CHANGE ANY FEES, YOU HAVE TO, YOU KNOW, YOU CAN'T, YOU CAN'T ANTICIPATE THE MONEY.

UM, YOU KNOW, TOO MUCH IN ADVANCE.

ONE OF THE REASONS THAT WE TIED THE INCREASE IN STAFFING AND GETTING THAT STAFFING PLAN, UM, WHICH WE ALSO HAVE ANOTHER, UH, RESOLUTION THAT I CO-SPONSORED WITH COUNCIL MEMBER KELLY ON STAFFING, BUT IT'S ALSO IN THE WRITER.

UM, YOU KNOW, THESE ARE THE RESOURCES THAT WOULD ALLOW US TO GET TO 12 PERSON STAFFING AND, AND KIND OF FIXING THESE THINGS, GENERATING THAT REVENUE.

UM, YOU KNOW, SOME OF THAT OUGHT TO BE GOING BACK TO SUPPORTING OUR EMS, WHETHER IT'S STAFFING OR IT'S, UM, WAGE INCREASES AND IN MY VIEW, UM, SO I APPRECIATE YOU LEANING INTO TO THE REVENUE SIDE.

UM, WHEN MAY WE HAVE A REPORT BACK ON THE 12% STAFFING PIECE OF THAT, I'D HAVE TO GET BACK TO YOU ON THAT, BUT, UH, I CAN, I CAN GET SOME, UH, SECURE TIMELINE FOR YOU IN A SHORT PERIOD.

UM, COUNCIL MEMBER FUNDUS.

THANK YOU FIRST.

JUST WANT TO THANK YOU CHAIR ALTAR FOR YOUR FIERCE LEADERSHIP ON THIS ISSUE IS INCREDIBLE THAT YOU'VE IDENTIFIED PATHWAYS FOR US TO INCREASE REVENUE THAT IS DESPERATELY NEEDED TO GET TO THAT 12 LEVEL STAFFING MODEL AND TO INCREASE WAGES FOR OUR EMS DEPARTMENT.

AND SO JUST THANK YOU SO MUCH FOR YOUR LEADERSHIP.

UH, AND THEN, UM, CHIEF BLOOD GRITS, JUST WANT TO SAY, HEY, YOU HAVE HIT THE GROUND RUNNING.

I MEAN, SERIOUSLY, I'M VERY IMPRESSED BY YOUR PRESENTATION AND JUST IN PLEASED TO SEE HOW YOU'VE BEEN ABLE TO QUICKLY IDENTIFY AND ASSESS WHERE WE'RE AT WITH THIS POLICY AND, UH, AND BE ABLE TO, UH, COMMUNICATE TO US, YOU KNOW, HOW YOU ARE TAKING ACTION AND WHAT IS NEEDED.

AND SO I DID HAVE ONE QUICK QUESTION, BECAUSE YOU MENTIONED HOW IMPORTANT IT WAS FOR PROVIDER EDUCATION AND ENSURING THAT THEY UNDERSTAND HOW TO PROPERLY, UM, UH, LOG THE, THE CLAIMS. UM, ANY, DO YOU NEED ADDITIONAL RESOURCES OR SUPPORT IN THAT EFFORT FOR PROVIDER EDUCATION? UH, AT THIS TIME, UM, AS WE, AS WE WORK THROUGH THIS, THERE'S NOTHING WE NEEDED AT THE MOMENT LOOKING INTO 2023.

UM, I THINK AS WE FINISH UP THE BUDGET PROCESS, WE'RE LOOKING VERY CLOSELY AT THAT AND ENSURING THAT ANY EDUCATION THAT WE'RE PROVIDING F ON THE DOCUMENTATION AND WHY YOU MIGHT SAY ON THE ADMINISTRATIVE SIDE, ISN'T DETRACTING FROM OUR ABILITY TO MAKE SURE THAT OUR CLINICIANS ARE THE BEST CLINICIANS IN TEXAS.

UM, AND SO I THINK WE NEED TO LOOK VERY CLOSELY AT OUR EDUCATION PROGRAMS AND WE MAY COME BACK TO YOU.

STUDY THAT THEY COMMISSIONED TO HELP THEM WITH IT IS ALSO REVEALING THAT, WHICH IS ON TOP OF THE SAVINGS THAT WERE IDENTIFIED IN, IN THE DISPATCH EQUITY STUDY.

AND I THINK PART OF WHAT I HEARD WAS THERE WERE SOME TECHNOLOGY THINGS.

WE HAVE EXISTING SYSTEMS WHERE WE'RE NOT DEPLOYING CERTAIN THINGS THAT WOULD, YOU KNOW, PART OF THE CHALLENGE WITH THE BILLING IS THAT THE DOCUMENTATION IS NOT THERE.

SO IF YOU SOLVE THE DOCUMENTATION AND PROBLEM, THEN YOU DON'T HAVE THE LONG WAITS BECAUSE YOU JUST GO THROUGH THE PROCESS FASTER AND QUICKER, AND YOU DON'T HAVE TO HAVE PEOPLE CHASING DOWN THE DATA AND THE INFORMATION.

AND SO WHEN FOLKS ARE OPERATING IN THE ENVIRONMENT THAT IS HIGH STRESS FREE EMS, IF THERE'S WAYS TO, TO LET THEM KNOW, HEY, YOU'RE MISSING THIS FIELD, FILL THAT IN.

BEFORE YOU GO OFF FOR 72 HOURS TO NOT BE ON, ON SHIFT, THEN YOU CAN REDUCE THE BACKLOG, UM, THAT WAY AS WELL.

UM, WHICH IS SOMETHING I THINK THAT WAS LESS EMPHASIZED IN THE STUDY AND IS SOMETHING THAT CHIEF LUCK REX IS BRINGING, UM, FROM HIS EXPERIENCE.

AND THEN THE

[01:35:01]

UM, COUNCIL MEMBER, KELLY, OR CONTINENTAL TACO.

DID YOU WANT TO ADD ANYTHING? NOPE.

OUR LAST ITEM IS, UH, FUTURE ITEMS. UM, I DON'T KNOW MS. STOKES, IF YOU WANT TO.

UM, CHIEF LUCK, GRITS, IS THERE ANYTHING ELSE THAT YOU WANT TO MAKE SURE THAT WE KNOW WELL WHILE WE'RE HERE AND THANK YOU VERY MUCH FOR YOUR TIME.

THANK YOU SO MUCH.

I APPRECIATE, UM, YOU BEING HERE, UM, COLLEAGUES, UM,

[6. Identify items to be discussed at future meetings.]

I MEAN THAT, AND THEN COUNCIL MEMBER TOPO, I THINK JUST A QUICK NOTE.

UH, WE HAVE, UH, WE'LL HAVE OUR MAY MEETING AS REGULARLY SCHEDULED.

WE'VE MOVED THE JUNE MEETING A LITTLE BIT EARLY.

I KNOW IN MAY WE HAVE A FEW UP ITEMS OR FOLLOW UP AUDITS FROM MY OFFICE, WE'LL BE BRINGING ON, ON VARIOUS TOPICS.

UM, JUST PROVIDING INFORMATION ON PAST RECOMMENDATIONS.

OTHER THAN THAT, UM, I DON'T HAVE ITEMS I ANTICIPATE BEFORE THE COMMITTEE, AND I'M TRYING TO REMEMBER, UM, ITEMS FROM NOT OUR DEPARTMENT.

I DON'T THINK THERE'S A LONG LIST FOR ME.

UM, BUT I DO THINK WE'LL HAVE, YOU KNOW, A FULL REGULAR MEETING.

AND THEN I KNOW ECONOMIC DEVELOPMENT IS PLANNING TO PRESENT, UM, AT THE MAY MEETING.

YEAH, THEY'RE GOING TO ECONOMIC DEVELOPMENTS GONNA PRESENT ABOUT CULTURAL FUNDING AND I BELIEVE WE'RE SET FOR A STORM URI AFTER ACTION RATE, CONTINUED DISCUSSION, ASSUMING COUNCIL MEMBER TOVO WANTS TO HAVE THAT CAUSE ONE MORE TIME ABOUT, DID YOU WANT TO ADD SOMETHING HERE? BUT THAT WAS MY REQUEST THAT WE SCHEDULE AN UPDATE ON WHERE WE ARE, UH, WITH REGARD TO THE, THE AFTER-ACTION REPORT.

DID YOU SAY THAT WAS NEXT MONTH? I BELIEVE SO.

YES.

AND WHO WILL BE, AND IS IT, UH, HOMELAND SECURITY AND EMERGENCY MANAGEMENT PROVIDING THAT? OR IS THAT THE CITY MANAGER? I THINK THAT MY OFFICE AND YOUR OFFICE CAN DESIGN THAT, HOWEVER WE WOULD LIKE.

OKAY, THANK YOU.

SO, UM, PERHAPS, UM, YOUR STAFF AND, AND MY STAFF CAN GET TOGETHER, UM, AND WE CAN DO THAT SOONER RATHER THAN LATER, SO THAT WE CAN HAVE THE MOST INFORMATION AVAILABLE THAT WORK FOR YOU.

UM, ANYONE ELSE HAVE ANY OTHER COMMENTS? UM, WELL THANK YOU.

UM, IT IS 1109 AND I WILL ADJOURN THIS MEETING.