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[00:00:02]

THE V OVERSIGHT COMMISSION IT.

[CALL TO ORDER]

UM, TWO EIGHT.

AND WE SHOULD START WITH THE ROLL.

WOULD YOU LIKE ME TO DO OR COMMISSIONER RODRIGUEZ? NOT PRESENT.

COMMISSIONER SUPTA.

NOT PRESIDENT.

COMMISSIONER.

PEN COMMISSIONER.

CURRY COMMISSIONER.

COMMISSIONER GONZALEZ.

COMMISSIONER LUCA? NOT PRESENT.

COMMISSIONER MCNABB.

COMMISSIONER PRESENT.

COMMISSIONER WEAVER AND COMMISSIONER.

NOT PRESENT.

SO WE DO HAVE A FORM.

WE WILL BEGIN THE AGENDA.

DO WE HAVE ANY PUBLIC COMMUNICATIONS? NO COM PUBLIC COMMUNICATIONS? FIRST

[1. Approval of the minutes of the Regular meeting of the Bond Oversight Commission on November 16, 2022.]

ITEM OF BUSINESS, HIS APPROVAL OF MINUTES.

IF YOU'VE HAD TIME TO READ THE MINUTES FOR THE MEETING OF, UH, NOVEMBER 16TH.

IS THERE A MOTION TO APPROVE THE MINUTES? THERE'S A MOTION.

AND WAS THERE ALSO A SECOND? YES.

ARE THERE ANY COMMENTS, QUESTIONS, ADDITIONS TO THE MINUTES? HEARING NONE.

ALL THOSE IN FAVOR SIGN.

AYE.

AYE.

MOTION CARRIES UNANIMOUS.

[2. Staff Briefing from Financial Services on the Public Improvement Bond programs financial update. ]

WE WILL TURN TO STAFF BRIEFINGS, THE FIRST STAFF BRIEFING BEING, UH, FROM FINANCIAL SERVICES ON THE PUBLIC IMPROVEMENT BOND PROGRAM.

FINANCIAL UPDATE.

GOOD AFTERNOON, COMMISSIONERS.

I'M TINA VAN WEI WITH FINANCIAL SERVICES.

UM, HAPPY NEW YEAR.

UM, WE ARE ACTUALLY, UH, A BIT INTO OUR FISCAL YEAR, BUT I'M HERE TO PRESENT A HIGH LEVEL OVERVIEW OF THE STATUS OF OUR PUBLIC IMPROVEMENT BONDS.

NEXT SLIDE, PLEASE.

SO, I'M JUST GONNA START WITH A REFRESH OF OUR LIFE CYCLE.

UM, WE DO HAVE A NUMBER OF GUIDING PLANS AND DOCUMENTS AND INITIATIVES THAT GUIDE DEPARTMENTS INTO DEVELOPING THEIR PROJECTS AND PROGRAMS. UM, TYPICALLY FOR OUR COMPREHENSIVE BOND PROGRAMS, THERE IS A BOND DEVELOPMENT, UH, PROCESS.

UM, AND ONCE AN ELECTION HAS BEEN CALLED AND VOTES HAVE BEEN TALLIED, COUNCIL WILL TAKE ACTION ON AMENDING THE CAPITAL BUDGET, GIVING THEM AUTHORIZATION TO ALLOW THE EXPENDITURE OF FUNDS, WHICH THEN ALLOWS THE DEPARTMENT TO, UM, LASTLY, IN THE CYCLE, WE HAVE AN ANNUAL BOND SALE.

SO ONE TIME A YEAR, WE WILL ISSUE BONDS.

OUR TREASURY OFFICE WILL DO THAT.

UM, AND, AND I WANT TO REITERATE THAT WE DO NOT ISSUE THE BONDS ALL UPFRONT.

THEY'RE PACED OUT AS NEEDED, UM, THAT TRACK ALONG, UH, TYPICALLY WITH OUR EXPENDITURES.

NEXT SLIDE.

WE DO HAVE, UM, TWO RELEVANT FINANCIAL POLICIES RELATED TO ELECTIONS.

THE FIRST IS TO HAVE ONLY TWO YEARS LEFT OF AUTHORIZED, BUT UN ISSSUED BONDS REMAINING WHEN AN ELECTION IS HELD.

AND SECONDLY, THAT THE TOTAL DOLLAR AMOUNT OF BOND, UH, BONDS RECOMMENDED TO THE VOTERS DOES NOT EXCEED, UM, THE ABILITY TO ISSUE THOSE BONDS WITHIN A TYPICAL SIX YEAR PERIOD.

FOR THE 23 BUDGET, WE ARE IN COMPLIANCE.

NEXT SLIDE.

SO HERE WE, WE HAVE A NUMBER OF, OF, UM, PUBLIC IMPROVEMENT BOND PROGRAMS. SO THESE ARE ALL ON THE SLIDE BACK TO 1998, TO GIVE Y'ALL PERSPECTIVE AND TO KIND OF TRACK, UM, WHERE WE'RE GOING.

UH, SINCE 98, THERE'S BEEN 11 ELECTIONS FOR BONDS.

UH, THE BLUE BARS ARE REPRESENTING THE COMPREHENSIVE PACKAGES WITH MULTIPLE PROPOSITIONS AND INFRASTRUCTURE TYPES.

THE GREEN BARS ARE REPRESENTING SINGLE INFRASTRUCTURES WITH, UH, THE EXCEPTION OF 2000.

IT INCLUDED TRANSPORTATION, NANO OPEN SPACE.

THE HASH BARS

[00:05:01]

ARE THOSE, UH, PROPOSITIONS THAT FAILED.

UM, LARGELY THE ELECTIONS HAVE BEEN SUCCESSFUL, UM, IN OUR MOST RECENT ELECTION WAS FROM NOVEMBER, 2022, UH, FOR AFFORDABLE HA HOUSING PASSING AT 350 MILLION FOR CATEGORIES INCLUDING LAND ACQUISITION, RENTAL, HOUSING DEVELOPMENT ASSISTANCE, OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE, AND HOME REPAIR.

THIS ELECTION WAS SPARKED BY AN ITEM FROM COUNCIL DIRECTING THE CITY MANAGER TO BRING AN ORDINANCE TO COUNCIL FOR AN AFFORDABLE HOUSING BOND PROPOSITION ON THE NOVEMBER 22ND, 22 BALLOT.

NEXT SLIDE, PLEASE.

THIS IS AN UPDATED, UM, SLIDE HERE TO SHOW YOU WHAT KIND OF AUTHORIZATION WE'RE LOOKING AT.

WE GO BACK TO 2006 ON THIS BECAUSE WE'RE LOOKING AT, UM, PROVIDING ASSETS THAT ARE 20 YEARS OR MORE.

SO OUR 2006 BOND PROGRAM IS STILL RELEVANT.

UM, AND WE HAVE GROUPED THESE PROPOSITIONS INTO SEVEN DIFFERENT CATEGORIES, WHICH IN OUR ARE IN ALIGNMENT WITH HOW THE PROPOSITIONS ARE APPROVED.

INCLUSION OF THE 350 MILLION JUST APPROVED THIS PAST NOVEMBER, HAS SHIFTED THIS GRAPH FROM THE PREVIOUS TIME WE HAVE SEEN IT.

UM, WHILE THE TRANSPORTATION AND MOBILITY PORTION IS STILL DOMINATING, UM, THE, UH, AFFORDABLE HOUSING, UM, HAS INCREASED PERCENTAGE WISE FROM AROUND 12% BUMPED UP TO 21%.

AND SO THIS IS HERE WE CAN REALLY SEE HOW THE INCLUSION OF THE STANDALONE TRANSPORTATION OF MOBILITY INFRASTRUCTURE AND HOUSING PROGRAMS, UM, COMBINED WITH OUR COMPREHENSIVE PROGRAMS HAVE HAD WEIGHTED THE INVESTMENTS.

NEXT SLIDE, PLEASE.

THIS IS A SUMMARY OF, UH, BONDS REMAINING TO BE ISSUED.

THIS IS, UM, A SLIDE THAT TREASURY PRESENTED, UM, LAST, UH, SPRING OR SUMMER.

UM, AND I'VE ADDED HERE THE 350 MILLION, UH, FROM THE MOST RECENT ELECTION.

YOU, YOU WILL NOTICE THAT WE, UM, HAVE 2006 BONDS FORWARD, UH, TO STILL ISSUE.

AND WE'RE LOOKING AT APPROXIMATELY 1.8 MILLION, UM, EXCUSE ME.

UH, WELL ABOUT 1.8 BILLION TOTAL IN REMAINING, UH, THAT WE STILL NEED TO ISSUE.

UM, PRIOR TO THIS, IT WAS AT 1.5 BILLION.

NEXT SLIDE.

SO HERE WE'RE JUST LOOKING AT BALANCES BY CATEGORY.

UM, AND YOU CAN SEE, AND HERE I DID NOT INCLUDE THE 350 MILLION JUST APPROVED, UM, BECAUSE THESE NUMBERS ARE THROUGH THE END OF FISCAL YEAR 2022.

AND COUNCIL STILL HAS YET TO TAKE ACTION ON AUTHORIZING THE EXPENDITURES FOR THE, THE BOND PROGRAM, THE NEW ONE.

UM, SO WE, I DON'T HAVE THAT ADDED IN HERE YET.

UM, BUT YOU CAN STILL SEE THAT AT THE END OF FISCAL YEAR 22, THERE'S STILL PRETTY HEALTHY, UH, SPENDING, UH, AVAILABLE UNDER THE CATEGORIES.

NEXT SLIDE PLEASE.

SO HERE WE HAVE IT BROKEN, THE SAME DATA BROKEN OUT BY THE ELECTION YEAR, SO THAT WE SEE PRIOR TO 20, THE 2016 PROGRAM THAT WE'RE BASICALLY SUBSTANTIALLY SPENT.

UM, AND SO OUR REAL ACTIVE PROGRAMS ARE GONNA BE 20 16 20 18, 20 20.

AND THEN NOW, UH, ONCE COUNCIL TAKES ACTION, THE DEPARTMENTS HAVE THE AUTHORITY TO SPEND.

WE WILL HAVE THE 2022 PROGRAM ADDED ON THERE AS WELL.

UM, NEXT SLIDE PLEASE.

SO HERE I KEPT IT TO THE 20 16, 20 18, AND 2020 BOND PROGRAMS AND KIND OF ORIENT YOU ON THIS GRAPH.

UM, WE PUT IT ALL ON THE SAME TIME SCALE.

SO YOU CAN SEE IN YEAR, AT THE END OF THE YEAR ONE, WE'RE SPENDING, YOU KNOW, LESS THAN 5% OF, UM, OUR AUTHORIZATION TYPICALLY FOR PROGRAMS. AND SO AS THE, THESE CURVES REPRESENT ACTUALS THROUGH FY 22, ONCE YOU SEE THAT LITTLE DOT WITH THE PERCENTAGE, THAT'S THE END OF FY 22 FOR THE PROGRAM.

AND THE PROJECTION OUT IS THE PLAN SPENDING AS IDENTIFIED IN THE FY 23 BUDGET DOCUMENT.

YOU'LL NOTICE THAT SOME OF THIS DOESN'T QUITE TIE OUT TO A HUNDRED PERCENT, UM, AND THAT THAT COULD BE A CAUSE OF A COUPLE OF DIFFERENT FACTORS.

WE DON'T ANNUALIZE OR PLAN SPENDING PAST FIVE YEARS.

SO IF THERE'S ANYTHING PAST FIVE YEARS, IT LOOKS LIKE A LUMP.

SO IT'S NOT SOMETHING THAT

[00:10:01]

THAT TRACKS ROLE, UM, UH, CLEARLY FOR A GRAPH LIKE THIS.

BUT THEN ALSO WHEN THESE ESTIMATES ARE PROJECTED, THERE'S A PROJECTION FOR FY 22.

SO IF THERE IS AN UNDERAGE, AN AN UNDER ACTUALS ARE UNDER WHAT WE'RE ESTIMATING FOR 22, WHEN WE'RE PROJECTING 23 AND FORWARD, WE'LL SEE THAT SHIFT DOWNWARDS IN THAT CURVE.

SO, LIKE YOU SEE WITH 2018, IT, IT KIND OF FLATTENS OUT.

IT'S NOT QUITE AT THAT A HUNDRED PERCENT.

THAT'S BECAUSE THE 22 ACTUALS CAME IN A LITTLE BIT LOWER THAN PROJECTED AS PART OF THE 23 BUDGET.

UM, NEXT SLIDE PLEASE.

AND THIS IS SOMETHING THAT I'M HAPPY TO SHARE WITH YOU.

LAST, UM, FALL, I THINK IT WAS THAT Y'ALL WERE, OR MAYBE LATE SUMMER, Y'ALL WERE BRIEFED ON A WEBSITE THAT WE WERE PUTTING TOGETHER FOR VARIOUS BOND RESOURCES.

AND THIS ACTUALLY HAS, UM, PRO OUR PIP PROGRAMS SINCE 2006.

IT INCLUDES ALL THE VARIOUS ELECTION INFORMATION WITH THE BALLOT BROCHURE, THE CONTRACTS WITH THE VOTERS, UM, AND IT ALSO HAS THE FINANCIALS, SO ACTUALS, UM, AND PLANS SPENDING.

SO THOSE DRAWDOWN CURVES THAT Y'ALL ARE USED TO SEEING, UH, WITH DEPARTMENTAL UPDATES, THOSE ARE NOW, UM, UP AND AVAILABLE TO THE PUBLIC.

AND WE DID PUT SOME, UM, UM, ISSUANCE AMOUNTS IN THERE AS WELL.

THEN WE ALSO HAVE A NUMBER OF OTHER RESOURCES LINKING OUT TO IT, UM, SUCH AS HISTORICAL CAPITAL PLANS, DEBT TRANSPARENCY, OPEN BUDGET, AND CAPITAL PROJECTS EXPLORER.

UM, THAT'S ALL I HAVE FOR TODAY.

I HOPE THIS PROVIDES THE COMMISSION KIND OF A, UH, A FOUNDATION FOR, UM, THE PRESENTATIONS THAT Y'ALL RECEIVE THROUGHOUT THE YEAR, UM, TO KIND OF, UH, SEE WHERE WE'RE AT ALL ACROSS ALL THE PROPOSITIONS AT ONE TIME.

ANY QUESTIONS? UM, THERE'S DIFFERENT RATING AGENCIES.

I DUNNO THE, THE DIFFERENT RATINGS OFF THE TOP OF MY HEAD THOUGH.

UM, WE DO, WE WE DO PUBLISH THAT IN OUR BUDGET DOCUMENT, THOUGH.

UM, THAT'S ON THE AUSTIN FINANCE ONLINE, WHICH THE, THE, THE FIRST LINK IS FOR.

AND I CAN, I CAN MAKE SURE THAT THAT LINK IS WORKING WITHIN THE PDF.

CAN, CAN I ASK YOU A QUESTION? WHEN YOU SAID SPREAD, DID YOU MEAN RATE R OR I COULDN'T MAKE THAT OUT.

YEAH.

YEAH, I GOT SO YOU, YOU MEAN, UH, LIKE, I MEAN, YOU KNOW, FOR INSTANCE, UNDER PUBLIC SAFETY OR UNDER HEALTH, YOU TAKE THE

[00:15:01]

P B, THE, THE ABILITY THAT WE HAVE TO ACTUALLY FLOAT.

AND THEN AS WE ISSUE THOSE OVER THE YEARS, THE SPREAD DIFFERENTIAL FROM FISCAL YEAR TO FISCAL YEAR, GIVEN INTEREST RATE ENVIRONMENTS, THE INFO, UH, WEBSITE CONTAINS A LOT OF, UM, DEBT DOCUMENTS, OFFICIAL STATEMENTS, AND THE BUDGET DOCUMENT DEFINITELY OUTLINES, UM, THE CREDIT RATINGS THAT WE'VE RECEIVED.

IF WE WERE NOT ABLE TO ANSWER THAT FROM THE LINK IN THE DEPARTMENT THAT WE SHOULD BE ASKING WOULD BE TREASURY, RIGHT? YES.

YEAH.

THE GOOD NEWS IS WHAT YOU'RE ASKING IS ALL IN THERE.

WHETHER OR NOT IT'S SALI COMPRESSED A, YOU KNOW, A ONE ONE PAGER, I DON'T KNOW.

BUT ANY OTHER QUESTIONS, COMMENTS? I HAVE A QUESTION ON THE, UH, SLIDE, I GUESS SLIDE NUMBER NINE ON THE PROJECTIONS.

SO IF I'M UNDERSTANDING THE FINANCIAL POLICIES CORRECTLY, SOMEWHERE ON THIS LINE, WE OUGHT TO BE ABLE TO TELL WHERE WE EXPECT TO BE HAVING THE NEXT BOND ELECTION.

YEAH, AND THAT'S A COMPLICATED ANALYSIS.

UM, AND THANK YOU FOR SAYING THAT CUZ I COULDN'T FIGURE IT OUT.

YOU KNOW, UM, I, I I THINK THAT, UM, WE, WE CONTINUE TO HEAR REFERENCE TO A 24 BOND, UH, PROGRAM BECAUSE WE TYPICALLY DO CONFLICT COMPREHENSIVE BOND PROGRAMS OVER A SIX YEAR PERIOD.

BUT WITH ALL OF THE ONE-OFF PROPS THAT WE'VE HAD WITH SO MUCH OUTSTANDING AUTHORIZED, BUT UNISSUED, THERE'S A LOT OF FACTORS THAT WE NEED TO LOOK AT.

THE, THE, UM, DEBT SERVICE REQUIREMENTS, WE, THE FINANCIAL POLICIES, UM, AND, AND A LOT OF THAT, UH, OUTSTANDING DEBT TO BE ISSUED.

WE WANNA BE MINDFUL OF THAT CREDIT RATING.

SO IN ORDER ORDER DO THEY ANSWER THAT QUESTION? THERE'S A LOT MORE ANALYSIS THAT NEEDS TO GO INTO IT THAT, YOU KNOW, THESE, THESE BASIC CURVES THAT PROJECT OUT THE SPENDING.

SO THIS IS A GOOD WAY TO KIND OF TRACK OUR PROGRESS FINANCIALLY.

UM, BUT AS FAR AS DETERMINING WHAT OUR NEXT CYCLE'S GONNA BE, UH, THAT'S GONNA BE, UM, UH, A PRETTY GOOD, UH, LIFT AND ANALYSIS.

SO WE COULD NOT TAKE THE 1.8 BILLION AND, UM, UM, DIVIDE THAT, THAT BY THE, ABOUT THE TYPICAL ANNUAL BOND SALE.

UH, NO, WE REALLY LIKE TO TRACK BY EXPENDITURE.

SO IF YOU LOOK AT THE, UM, YOU KNOW, REMAINING BALANCES THAT, THAT'S GOING TO, TO GIVE US OUR BEST, UM, PROJECTIONS ON AN ANNUAL BASIS, THE, AN BOND SALES ANNUAL, UH, ANALYZED ANNUALLY TO COME UP WITH THE BOND SALES.

SO AS THE ACTUALS COME IN, UM, THOSE ARE, ARE, ARE GIVEN A HARD, SO IS THE, IS THE F BALANCES OR UN ISSUED BONDS? FINANCIAL POLICY IS RELATED TO HOW MANY UN ISSSUED BONDS WE HAVE.

ANY OTHER QUESTIONS? HEARING NONE.

THE

[3. Staff Briefing from Public Works on Construction Cost Inflation. ]

NEXT BRIEFING IS, UH, PUBLIC WORKS ON THE CONSTRUCTION COST INFLATION.

GOOD AFTERNOON EVERYBODY.

UM, ERIC BAILEY, OH, SORRY, I'M GONNA DO THAT THERE MUCH BETTER.

UH, ERIC BAILEY, ASSISTANT DIRECTOR OF PUBLIC WORKS, UH, CAPITAL PROJECT DELIVERY.

I'M GONNA BE GIVING Y'ALL A, UM, QUICK UPDATE ON INFLATION.

UH, BASICALLY GOING FROM, UH, 2020 UNTIL THE PRESENT.

UM, WE'RE FORTUNATE, I'LL GIVE YOU A LITTLE PREVIEW.

WE'RE SEEING SOME GOOD NEWS IN TERMS OF WHAT WE'VE SEEN IN THE COST INDEXES IN THE LAST COUPLE MONTHS.

SO WITH THAT, WE'LL GO AHEAD AND GET STARTED.

UM, SO THE WAY THAT, UH, THE CONSTRUCTION INDUSTRY OVERALL, UM, TRACKS INFLATIONS THROUGH THE ENGINEER NEW ENGINEERING NEWS RECORD, UH, COST INDEX.

THERE ARE TWO COST INDICES INCLUDED IN THIS.

THE CONSTRUCTION COST INDEX AND THE BUILDING COST INDEX.

UH, THEY MEASURE TWO DIFFERENT THINGS.

THE

[00:20:01]

CCI IS RELATED TO HORIZONTAL PROJECTS, SO INFRASTRUCTURE, UM, YOU KNOW, ROADS, PIPES, THAT KIND OF THING.

BUILDING COST INDEX IS RELATED TO VERTICAL CONSTRUCTION.

UM, WHAT THEY DO IS THEY PRICE A BASKET OF GOODS SIMILAR TO THE, UM, CONSUMER PRICE INDEX THAT INCLUDES LABOR, RAW MATERIALS, THINGS THAT GO INTO THOSE PARTICULAR, UM, CONSTRUCTION, UH, THAT PARTICULAR CONSTRUCTION WORK.

AND THEY ARE, UM, MEASURED ON A MONTHLY BASIS ACROSS 20 INDIVIDUAL CITIES, WHICH CREATES AN INDUSTRY AVERAGE.

UM, AND GENERALLY, UNLESS THE, THE SPECIFIC MARKET OF INDIVIDUAL CITIES INCLUDED IN THAT 20 INDIVIDUAL CITY MEASUREMENT, UH, THE AVERAGE IS THE MOST ACCURATE.

AUSTIN IS NOT ONE OF THE, UM, INDIVIDUAL CITIES THAT'S MEASURED.

DALLAS IS.

UM, SO WE USE THE, UH, THE AVERAGE, UH, NEXT SLIDE PLEASE.

HERE'S THE RAW DATA, UM, FOR BOTH THE CCI AND THE BUILDING COST INDEX THAT WE USE TO BUILD OUR, UM, YOU KNOW, INFLATION CALCULATIONS.

UM, THIS IS THE VALUE OF THAT BASKET OF GOODS.

AND YOU CAN SEE THEY HAVE RECORDS, I THINK GOING BACK TO THE AROUND, UH, THE 19 HUNDREDS IN TERMS OF THIS, YOU CAN TRACK 'EM FOR QUITE A WHILE, BUT WE'VE FOCUSED ON THE LAST TWO YEARS DUE TO THE PANDEMIC AND THE INFLATIONARY PRESSURES THAT WE'VE BEEN SEEING HERE RECENTLY.

UH, NEXT SLIDE, PLEASE.

UH, THIS GRAPH REPRESENTS THE, UM, CONSTRUCTION COST INDEX FROM JANUARY OF 2020 TO JANUARY OF 23.

UH, YOU CAN SEE THE PRICES INCREASING ACROSS THAT TIME PERIOD, BUT THE MOST IMPORTANT THING TO SEE IS REALLY THE ORANGE LINE HERE, WHICH IS THE MONTH TO MONTH INCREASE.

UM, THAT PEAKED IN, UM, THE SUMMER OF 21.

UM, A LITTLE BIT OF A DIP THERE IN LATE 21 AND THEN BACK UP AROUND 1%.

BUT THEN FOR THE LAST SIX MONTHS OR SO, WE'VE SEEN, UH, A NEAR FLAT, UM, UM, NO INCREASE IN, IN THE, UM, PRICE FOR THAT BASKET OF GOODS IN THE LAST SIX MONTHS OR SO.

SO THAT'S SHOWING THAT, UM, YOU KNOW, THE INFLATION HAS, UM, STABILIZED AS IT GOES THROUGH THE, THE ECONOMY.

AND WE'RE NOT SEEING THOSE LARGE INCREASES LIKE YOU CAN SEE FROM, UM, JANUARY OF 2020 THROUGH, UM, REALLY MAY OF 22.

UM, OVERALL FROM JANUARY OF 2020 UNTIL JANUARY OF 2023, THERE'S A 16% INCREASE IN THE CONSTRUCTION COST INDEX, WHICH WOULD REPRESENT A, YOU KNOW, REAL INCREASE FOR C I P PROJECTS AND, AND ANY PROJECT THAT THE, THAT ANYONE IS DOING IN THE CONSTRUCTION INDUSTRY RELATED TO, UM, YOU KNOW, HORIZONTAL CONSTRUCTION INFRASTRUCTURE, THAT KIND OF THING.

UH, NEXT SLIDE PLEASE.

THE BUILDING COST INDEX HAS SEEN A MUCH LARGER, UH, INCREASE FROM, UH, JANUARY OF 2020 TO JANUARY OF 23 WITH A TOTAL OF 28%.

THAT'S GONNA REPRESENT A LARGER INCREASE ON SOME OF OUR FACILITIES, PROJECTS, UM, CULTURAL FACILITIES, THAT KIND OF THING, VERTICAL CONSTRUCTION THAT WE'VE SEEN COMING THROUGH.

BUT WE'RE ALSO SEEING THAT SAME TREND OVER THE LAST SIX MONTHS OR SO WHERE THE INCREASE MONTH TO MONTH HAS BEEN, UM, PRETTY CLOSE TO ZERO.

IT'S LESS THAN, UH, YOU KNOW, ONE 10TH OF 1%.

SO, BUT SEEING IT ALL START TO TO LEVEL OFF AND NORMALIZE AS SOME OF THE SUPPLY CHAIN, UH, KINKS WORK THEMSELVES OUT AS WELL AS THE, UH, YOU KNOW, LABOR AND ECONOMY AND, AND THINGS LIKE THAT ARE, ARE WORKING OUT, UH, AND NORMALIZING MORE AS THEY MOVE FORWARD.

UM, NEXT SLIDE.

SO THE QUESTION THEN BECOMES, YOU KNOW, WHAT CAN WE DO, UM, ABOUT THAT? AND, YOU KNOW, HOW THE, HOW DOES THAT REALLY AFFECT OUR, UM, BOND PROGRAMS FROM, ESPECIALLY FROM 20 16, 20 18 AND 2020, WHERE WE ESTIMATE THE VALUE OF THE PROJECTS THAT GO INTO THOSE BONDS.

AND NOW WE'RE IN A CASE WHERE THE ACTUAL COST OF THOSE IS GONNA COST MUCH MORE THAN WHAT WE THOUGHT ABOUT.

UM, WE PLAN ON IN THE PAST, IN OUR CIP P SPENDING, WE PLAN ON ABOUT A 3% COST INCREASE PER YEAR.

SO FOR EXAMPLE, FROM THE 2020 BOND PRO PROGRAM, THAT WOULD ACCOUNT FOR ABOUT A 9% INCREASE, A LITTLE BIT MORE THAN THAT.

UM, AND WE'VE SEEN, YOU KNOW, 16% FOR THE, THE CIVIL PROJECTS AND UPWARDS OF 20% FOR THE BUILDING PROJECTS.

SO, UM, AGAIN, A LOT OF THE IMPACT HAS REALLY BEEN AROUND, UM, THE VERTICAL CONSTRUCTION.

AND WHAT WE'VE DONE TO MITIGATE THAT IS, UM, YOU KNOW, WE'VE GOTTA HAVE A COUPLE OF THINGS THAT WE CAN DO.

ONE IS REDUCING THE SCOPE OF THOSE PROJECTS TO MEET THE BUDGET CONSTRAINTS.

UH, WE DON'T LIKE TO DO THAT JUST BECAUSE WE HAVE MADE, UM, YOU KNOW, PRESENTATIONS AND PROMISES TO THE PUBLIC IN TERMS OF WHAT THE PROJECT IS GOING TO BE.

FORTUNATELY, WE'RE ABLE TO TRIM, UM, HERE AND THERE TO STILL MEET THE NEED OF THE PUBLIC AND MEET WHAT WE'VE TOLD THEM THAT WE'RE GOING TO DO, UM, WHILE REDUCING THAT BUDGET IN, IN ORDER OR REDUCING THE SCOPE IN ORDER TO FIT THE BUDGET.

UM, WE'VE ALSO IDENTIFIED ADDITIONAL FUNDING SOURCES, WHETHER THAT'S THROUGH GRANTS, UH, ADDITIONAL C I P BUDGET REQUESTS, UM, SOMETIMES OPERATING FUNDS WE CAN ROTATE INTO SOME, UM, REDUCE COST IN TERMS OF PROJECT CONSTRUCTION, THINGS LIKE THAT.

AND SORT OF A, A LAST GAP WOULD BE TO, TO DELAY THE PROJECT, UM, RE EITHER TAKE LONGER TIME TO RESCOPE IT OR TO REACH BACK OUT TO THE PUBLIC AND GET ADDITIONAL PUBLIC INPUT IN TERMS OF WHAT WE'RE FACING FROM AN ECONOMIC FRONT OF

[00:25:01]

WHAT THE, UM, WHAT JUST THE REALITY IS OF THE MONEY THAT WE HAVE AVAILABLE VERSUS THE, UM, YOU KNOW, COST OF DOING THAT WORK.

SO, UM, FORTUNATELY WE HAVEN'T HAD ANY PROJECTS WHERE WE THAT HAVE COME TO A DEAD STOP AND JUST SAID, NO, WE CAN'T DO THIS ANYMORE.

UM, WE'VE DONE ALL OF OUR, YOU KNOW, PROJECT MANAGERS AND PROJECT SPONSORS, FOLKS WITHIN THE CIP P DEPARTMENTS HAVE DONE A GOOD JOB OF, UM, YOU KNOW, FINDING THAT ADDITIONAL FUNDING AS WELL AS, YOU KNOW, VALUE ENGINEERING EFFORTS TO, UM, MEET THE INTENT OF THE PROJECT WHILE ALSO MEETING THE, UH, THE REAL BUDGET CONSTRAINTS THAT WE'VE HAD.

SO, UH, NEXT SLIDE.

I THINK THAT'S THE END AND I'LL OPEN IT UP FOR ANY QUESTIONS.

ARE THERE ANY QUESTIONS? I HAVE ONE JUST ABOUT WHAT YOU JUST SAID.

I, UM, I'M GONNA KEEP PICKING AT A SORE SUBJECT, , BUT IN OUR LAST MEETING, I THOUGHT I UNDERSTOOD THE PRESENTATION TO SAY THAT THE REPLACEMENT PROJECT FOR THE DI WAS, HAD BEEN THE DELAY.

I'M, I'M NOT SUPER FAMILIAR WITH THAT PROJECT, TO BE PERFECTLY HONEST WITH YOU, BUT I KNOW THAT THEY'VE HAD SOME SCOPING ISSUES THAT HAVE COME ABOUT, UM, PARTICULARLY RELATED TO, UH, PARKING IN THAT AREA.

UM, AND SO I THINK THAT WAS A COMBINATION OF, YOU KNOW, NOT ONLY THESE INFLATIONARY PRESSURES, BUT ALSO THE SCOPE OF THE PROJECT FROM THE VERY, VERY BEGINNING.

SO, UM, I THINK BOTH THOSE THINGS KIND OF COMBINED TO LEAD THAT PROJECT TEAM TO, UM, RETHINK WHAT THE SCOPE IS AND WHAT THE BEST WAY IS TO DELIVER THAT PROJECT.

UM, AND, AND THAT'S MY UNDERSTANDING OF IT, THAT'S, UM, NOT A BY PROJECT THAT WE'RE MANAGING WITHIN PUBLIC WORKS, IT'S MANAGED OUTSIDE OF THE PUBLIC WORKS DEPARTMENT.

SO AGAIN, I DON'T HAVE, UM, THE FULL DETAILS ON THAT, BUT THAT'S MY UNDERSTANDING OF WHAT'S HAPPENING THERE.

MY UNDERSTANDING FROM THE PRESENTATION WAS THAT THEY CURRENTLY HAD, UM, NO PROPOSAL THAT WAS WITHIN FUNDING AVAILABLE.

AND, UH, YOU'RE RIGHT, THE, THE ISSUE IS PARKING MM-HMM.

, UM, THAT WAS NOT INCLUDED ORIGINALLY AND NOW NEEDS TO BE ADDED.

UH, BUT I THOUGHT I UNDERSTOOD THAT THE PRESENTER AGREED THAT THE GRAPH THAT SHOWED THE BONDS FULLY EXPENDED WAS INCORRECT CAUSE THEY HAVE NO PROPOSAL, UM, FOR SPENDING THOSE BONDS.

UM, COMMISSIONER CURRY, THIS IS, UM, TINA VAN FINANCIAL SERVICES SINCE THAT TIME, I BELIEVE, UM, THERE, UM, HAS BEEN A, UM, THERE WAS AN ITEM FROM COUNCIL, UH, THAT ADDRESSED THE APPROACH TO TAKE WITH THAT FACILITY.

THAT'S SOMETHING I, I CAN LOOK TO, UH, DIG OUT AND PASS ALONG TO THE COMMISSION.

I BELIEVE IT, IT IS SOMETHING THAT, UM, COUNCIL HAS TAKEN ACTION ON TO PROVIDE SOME GUIDANCE TO STAFF.

OKAY.

THANK YOU VERY MUCH.

THANKS.

ANY OTHER QUESTIONS ON THIS PRESENTATION? I'M SORRY.

UM, CAN I, THIS IS GONNA SOUND REALLY GENERIC AND I DON'T HAVE IT POINTED YET.

UM, BUT I MEAN, IT, IT MAKES SENSE WHEN YOU TALKED ABOUT FINDING OTHER FUNDING SOURCES WITH REGARD TO CAPITAL IMPROVEMENT, UH, CIP P FUNDS OR OTHER GNA OVERHEAD.

UM, I, I, I'M GE THAT, THAT MAKES SENSE TO ME, I GUESS BECAUSE, YOU KNOW, COST OVERRUNS ON CCI AND BPI, YOU KNOW, VERTICAL AND HORIZONTAL, THOSE HAVE FAR OUTWEIGHED WHAT WE'RE PAYING AS FAR AS STAFF INCREASES ON SALARIES AND ON EXISTING MAINTENANCE AND DEFERRED MAINTENANCE AND ALL THAT KIND OF STUFF.

I MEAN, IT'S 9% VERSUS 2%.

I MEAN, THAT'S JUST THAT, UM, YOU KNOW, I'M NOT GONNA HOLD YOU TO THIS, BUT IS THAT SEEM TO SORT OF BE THE, THE NORM RIGHT NOW WITH NEW, UH, YOU KNOW, CAPITAL DEPLOYMENTS, NEW CONSTRUCTION PROJECTS THAT WE'RE SORT OF HAVING TO, NOW THAT THINGS ARE LEVELING OFF, BUT OF COURSE WE'RE LOOKING AT A TWO YEAR BACKLOG.

IS THAT KIND OF GONNA BE SORT OF THE, THE NORM FOR THE NEXT YEAR OR TWO AS WE, WE FIGURE OUT HOW TO FUND, UH, SOME OF THESE OVERAGES ON CCI AND BCI? YEAH, I MEAN, THAT'S, THAT'S A PIECE OF IT.

AND THEN, YOU KNOW, WE DO, EVERY YEAR WE DO A, A FIVE YEAR C I P PLAN THAT GETS SUBMITTED WITH THE BUDGET AND THINGS LIKE THAT.

AND SO IT'S, IT'S RELOOKING AT THAT AND WHAT FUNDS ARE AVAILABLE TO GO INTO THE C MIGHT NOT NECESSARILY BE BOND FUNDING OR THERE MAY BE, UM, YOU KNOW, THE BEST EXAMPLE THAT I CAN THINK OF REALLY IS THE PARKS DEPARTMENT.

UM, THEY'VE GOT A LOT OF PROJECTS, A LOT OF STUFF THEY WANT TO DO, YOU KNOW, IT'S NOT FULLY FUNDED BY ANY MEANS.

AND SO A LOT OF TIMES THEY HAVE A PROJECT THAT WOULD COME FORWARD THROUGH THE 20 16 20 18 BOND PROGRAM WHERE AT THE TIME WHEN THEY IDENTIFIED IT, IT WAS A 20 MILLION PROJECT, AND NOW IT'S A, YOU KNOW, 25 MILLION PROJECT.

I'M LIKE, WELL, YOU KNOW, WE CAN PLAY WITH THE SCOPE AND MESS AROUND WITH THAT.

BUT THEN ALSO MAYBE THERE'S SOME PARK DEDICATION FEES THAT CAME IN THAT THEY WEREN'T COUNTING ON, AND THEY GO INTO A FUND, WHETHER THEY, THEY CAN THEN BE, OKAY, WE'RE

[00:30:01]

GONNA DEDICATE, WE'RE GONNA MOVE THESE FEES INTO SUPPLEMENTING THIS C I P PROJECT AND THROUGH THE BUDGET PROCESS AND REALLOCATE SOME OF THAT MONEY TO MEET THE, THE, BUT SURE.

I NECESSARILY ANSWERED YOUR QUESTION.

NO, I THINK IT, YEAH, AND I'M NOT SURE EXACTLY HOW TO ANSWER IT.

JUST, IT'S LIKE MY SORT OF GUT FEELING IS, YEAH, YOU KNOW, THE, THERE'S A BUNCH OF OVERHEAD TO THE CITY THAT WE CAN SORT OF, KIND OF PACE AND CONTROL MM-HMM.

.

UM, BUT OF COURSE SUPPLY CHAIN AND CONSTRUCTION WAS JUST, THAT WAS JUST WILDLY DIFFERENT.

YEAH.

UM, AND YOU, YOU KNOW, AND, AND THIS, THIS COMMISSION, AND TINA AND HER STAFF HAVE DONE A GREAT JOB OF, OF PUSHING FORWARD MORE TRANSPARENCY.

WE'RE MAINLY A LOOK BACK MM-HMM.

AT, YOU KNOW, BEST PRACTICES ON, ON PREVIOUS BONDS AND SORT OF ADVISING WHAT FEATURE BONDS MIGHT LOOK LIKE TO COUNCIL.

UM, AND SO, YOU KNOW, WE CAN SORT OF KIND OF CONTROL, YOU KNOW, TO, TO THE PREVIOUS PRESENTATION JUST A MOMENT AGO, UM, DEPLOYING, UH, IN THIS CURRENT INTEREST RATE ENVIRONMENT WITH RISING INTEREST RATES AND, AND THAT KIND OF THING.

WE CAN SORT OF, KIND OF PACE THAT, WELL, WE CAN'T REALLY DO THOSE, TO YOUR POINT IS WE, WE TOLD THE PUBLIC WE WERE GONNA DO X, Y AND Z, X, Y, AND Z NOW COST 25% MORE.

UM, AND I DON'T WANNA PUT TOO MUCH MORE OF A, AN ENCUMBRANCE ON, ON STAFF, BUT, UM, I, I THINK THE PUBLIC WOULD, WOULD PROBABLY, I WON'T SAY EASILY, BUT COMFORTABLY DIGEST THAT THIS NOW LOOKS LIKE IT'S GONNA BE, YOU KNOW, BECAUSE OF A LOOK BACK ON CONSTRUCTION COST, THIS WILL END UP COSTING 20% MORE.

WE'LL GET THAT FROM CIP P OR OTHER OVERHEAD G A, UM, FUNDS.

AND, UM, I MEAN, I THINK IT, IT MAKES SENSE BECAUSE JUST LIKE, YOU KNOW, WE CAN CONTROL WHEN WE SELL BONDS, WE CAN CONTROL WHAT WE PAY STAFF.

WE CAN'T CONTROL THE COST OF WOOD.

RIGHT.

YOU KNOW, UM, SO I'M, I'M JUST WONDERING IF THERE'S, UM, THIS, THIS WHOLE PROCESS HAS BECOME A LOT MORE TRANSPARENT AND A LOT MORE PALATABLE, I THINK, TO THE PUBLIC.

ANYWAY, ALL THAT TO SAY THANK YOU, THIS MAKES SENSE.

I'M GONNA TRY TO FIGURE OUT HOW WE CAN PUSH THIS OUT WITH YOUR HELP.

SO, UM, AND GOOD LUCK, LAUREN, THE COST OF CONCRETE .

ANY OTHER QUESTIONS?

[4. Staff Briefing from the Housing and Planning Department on Proposition A of the 2018 Bond program for Affordable Housing. ]

IF NOT, WE'LL MOVE ON TO THE FOURTH, ADAM, UNDER BRIEFINGS, UH, STAFF BRIEFING FROM HOUSING AND PLANNING ON PREPOSITION A 2018 BOND PROGRAM FOR AFFORDABLE HOUSING.

JAMIE, DO YOU WANT ME TO TAKE A LEAST FIRST COUPLE SLIDES? SURE, SURE.

UM, YEAH, SO THIS IS JUST PART OF OUR STANDARD TEMPLATE, REFRESHING OURSELVES ON, UM, WHAT THE, UH, BALLOT LANGUAGE WAS FOR, UH, FROM THE VOTERS.

NEXT SLIDE.

AND THIS HERE IS THE, THE DATA FY 22.

UM, WE'RE LOOKING, WE'RE WE'RE DEFINITELY A HUNDRED PERCENT APPROPRIATED.

AND AT THAT POINT IN TIME, WE WERE 86% COMMITTED, UM, WITH A, A LARGE ENCUMBRANCE OF 75.6 MILLION.

AND A BALANCE OF 36 MILLION ISSUED TO DATE HAS BEEN 200, ROUGHLY 200 MILLION.

SO WE HAVE ABOUT 50 MILLION, UH, STILL REMAINING TO ISSUE ON THAT.

UM, UH, JAMIE DOES HAVE SOME MORE CURRENT, UH, UH, FINANCIAL INFORMATION ON EACH OF THE PROGRAMS, UH, TO DATE.

UM, BUT THAT'S WHAT, WHERE WE WERE LOOKING AT, AT THE END OF FY 22.

NEXT SLIDE.

SO YOU CAN SEE THAT, UH, THERE WAS, THERE WAS GOOD PROGRESS, UM, IN THE SPENDING ON THIS PROPOSITION LAST YEAR, RAN A LITTLE BIT FLATTER COMPARED TO PRIOR YEARS, WHICH IS WHY WE'RE, WE'RE SHOWING A, A LITTLE, UM, A LITTLE OFF ON TYING UP, UH, THE OVERALL PROGRAM.

BUT, UM, AS ERIC ACTUALLY MENTIONED EARLIER, WE ARE CURRENTLY IN THE PROCESS OF STARTING TO KICK OFF OUR FIVE YEAR PLANNING.

AND SO THIS GIVES THE OPPORTUNITY FOR DEPARTMENTS TO GO BACK, REEVALUATE, UH, LOOK AT ANY SORT OF RECOVERY PLANS, UM, AND, UH, TO, TO WORK ON, UM, GET, GETTING THE, THE DOLLARS PUSHED OUT.

UM, AND I THINK, I THINK THE NEXT SLIDE'S GONNA BE, JAMIE,

[00:44:42]

ANY

[00:44:43]

QUESTIONS?

[00:49:25]

ADDITIONAL QUESTIONS? I HAVE A QUESTION, UM, FOR YOU, UM, BOTH ON SLIDES EIGHT AND UM, 10 WHERE YOU REFER TO THE NUMBER OF UNITS AT 30% MFI, 50% M MFI, AND THEN ON SLIDE 10 80 AND 60% MFI, HOW, HOW ARE THOSE DETERMINED? HOW ARE THE NUMBER OF UNITS AT X PERCENT M F I?

[00:50:58]

SO THE, THAT NUMBER IS NOT SET IN COVENANTS OR BY POLICY, IT A MATTER OF NEGOTIATION.

SO AM I CORRECT IN SAYING, IN INTERPRETING WHAT YOU'VE SAID IS IT WOULD REQUIRE MORE CITY FUNDING? YES.

YES.

I ASKED THE QUESTION, THE QUALITY OF LIFE COMMISSION JUST COMPLETED THREE TOWN HALL MEETINGS ON OWN RECOMMENDATIONS FOR NEXT YEAR'S BUDGET.

AND A GOOD 80 TO 90% OF THE COMMENTS WERE ABOUT AFFORDABLE HOUSING.

AND A LOT OF THE COMMENTS SPECIFICALLY DEALT WITH THIS ISSUE, UH, HOW BUDGET, WHAT PERCENT, UM, IS THE CITY BUILDING OR PLANNING TO BUILD.

SO THAT'S THE REASON FOR THE QUESTION, AND PROBABLY WE'LL DRIVE SOME BUDGET RECOMMENDATIONS FOR COMING HERE.

SO THANK YOU FOR THE INFORMATION.

ANY OTHER QUESTIONS? ANY OTHER QUESTIONS? GO AHEAD.

I'M SORRY.

SO TO GO FURTHER BEYOND LOOKING AT THE BONDS WOULD INVOLVE COMPARING WHAT WE'VE DONE TO THE BLUEPRINT.

RIGHT.

GREAT.

THANK YOU.

THAT'D BE VERY HELPFUL.

ANY OTHER QUESTIONS? UM, MAY I ASK ONE, UH, MR. MAY, UM, GOING BACK TO SLIDE SEVEN, I REALLY, THIS IS A, A FURTHER LOOK BACK THAN THE CURRENT LAND ACQUISITION PLATFORM, I REALIZED JUST BASED ON LITERAL NUMBER OF YEARS.

BUT, UM, YOU KNOW, LAURA, YOU KNOW, HAVING A 30, 40 SOMETIMES PERPETUAL LIFESPAN, UM, BUT ON THE, THE, THE LANDOWNER OR THE LANDLORD OR THE DEVELOPER'S SIDE, YOU KNOW, THEIR TAX CREDIT ONLY LASTS 10 YEARS, UM, ON THE FEDERAL SIDE, HAVE, HAVE, YOU KNOW, NOT NECESSARILY WITH THIS CURRENT PLATFORM DEPLOYMENT, BUT HAVE YOU SEEN YOUR EXPERIENCE WITH THE CITY SCENE, YOU KNOW, ANY KIND OF, UH, I GUESS CONTRADICTION OR, OR CONFLUENCE OF,

[00:55:01]

OF, OF DIFFICULTY THERE BECAUSE OF, YOU KNOW, WE'RE LOOKING AT A 30, 40 YEAR SOLUTION TO LONG-TERM AFFORDABLE HOUSING, WHICH AS WE SHOULD.

UM, BUT YET THE, ON THE DEVELOPER SIDE, IT IT'S, IT'S LITERALLY JUST A1 YEAR.

AND I MEAN, YOU CAN SEE IN YEARS 11 WHEN LANDLORDS LITERALLY START TO PHYSICALLY STOP CARING ABOUT PROPERTIES WITHOUT A CAPITAL INFUSION BECAUSE THEIR TAX CREDIT PLATFORM RUNS OUT.

DOES THAT MAKE SENSE? OKAY.

AND THAT'S PRIMARILY JUST ON OUR OWNERSHIP SIDE.

UM, THE, UH, UH, RENTAL S THAT WE'VE APPLIED, UH, FOR MOST OF OUR DEVELOPMENTS, UH, WE SET THEM IN 40 YEARS BECAUSE THAT'S JUST, THAT'S, UH, 10 YEARS BEYOND A, UH, A TAX CREDIT.

UM, A LI LOW INCOME HOUSING TAX CREDIT, AND THEN A, UH, RENEWAL PERIOD.

SO THEY'VE GOT ABOUT 30 YEARS IN THAT TAX CREDIT WINDOW, THOUGH, UM, TO WHERE THEY HAVE TO, UH, MAINTAIN THAT DEEP AFFORDABILITY.

THEN AFTER THAT, THEY WOULD HAVE TO MAINTAIN IT DUE TO OUR LAURA, WE'VE SEEN A LOT OF DEVELOPERS, UH, IN THAT, UH, 15 YEAR MARK WHEN THEY WOULD RE, UH, RENEW THEIR TAX CREDITS, UM, EITHER DISPOSE OF THE PROPERTY, UH, SELL IT TO ANOTHER, UH, AFFORDABLE HOUSING DEVELOPER, IN WHICH CASE, UH, MANY OF OUR LOANS GIVE US THE RIGHT OF FIRST REFUSAL, SO WE COULD ACTUALLY HOLD THAT PROPERTY, UH, FOR THE LONG TERM.

UM, WHERE THEY HAVEN'T, WHERE, UH, DEVELOPERS HAVEN'T DISPOSED, THAT'S PRIMARILY DUE TO THE FACT THAT THEY'RE MISSION DRIVEN.

UM, AND THEY WOULD BE HOLDING THAT PROPERTY, UH, FOR 40, 50 YEARS ANYWAY.

UM, SO WE HAVEN'T GOTTEN MUCH PUSHBACK IN TERMS OF OUR, THE LENGTH OF OUR LAURA, UM, BUT WE DO SEE SOME VARIATION IN HOW IT IS HANDLED BY DIFFERENT DEVELOPMENTS.

OKAY.

THANK YOU.

ANY OTHER QUESTIONS? IF NOT, WE

[5. Staff Briefing from the Housing and Planning Department on the outcome of the November 8th Election on Proposition A for Affordable Housing. ]

WILL TURN TO ITEM FIVE UNDER THE BRIEFINGS, WHICH IS, UH, BRIEFING ON HOUSING AND PLANNING DEPARTMENT ON THE NOVEMBER 8TH ELECTION AND PROPOSITION A FOR AFFORDABLE HOUSING COMMISSIONER.

THANK YOU, COMMISSIONER.

THANK YOU VERY MUCH.

OH, SORRY.

GO AHEAD.

GO AHEAD.

SORRY.

NO, NO, NO.

UM, MY GONNA REINTRODUCE MYSELF, UM, JAMIE MAY, I'M THE HOUSING AND PLANNING OR HOUSING AND COMMUNITY DEVELOPMENT OFFICER FOR THE HOUSING AND PLANNING DEPARTMENT.

UH, YOU CAN SEE HERE OUR MISSION, UH, AND, UH, TODAY WE'RE GONNA BE TALKING ABOUT THE 2022 BOND ELECTION.

UM, WE'LL GO TO THE NEXT SLIDE HERE.

IT'S, SO, THE BALLOT LANGUAGE IN, UH, UH, 2022 ISSUED 350 MILLION, UH, IN TAX SUPPORTED GENERAL OBLIGATION BONDS AND NOTES FOR PLANNING AND DESIGNING AFFORDABLE HOUSING, UH, FACILITIES FOR LOW AND MODERATE INCOME PERSONS AND FAMILIES.

UH, THE DIFFERENCE BETWEEN THIS, UH, BALLOT AND THE 2018 BALLOT, UH, IS QUITE IMPORTANT.

ACTUALLY.

IN 2018, THE 250 MILLION WAS, UH, UH, ALLOCATED PER PROGRAM BY THE BOND LANGUAGE.

THIS BOND LANGUAGE GIVES US A LITTLE BIT MORE FLEXIBILITY, UH, TO SPEND THOSE DOLLARS, UH, WHERE THE NEED ARISES, UM, TO THE COMMISSIONER'S QUESTION, UH, REGARDING, UH, OWNERSHIP HOUSING VERSUS RENTAL HOUSING, UM, ONE OF THE CHALLENGES THAT WE HAD EARLY ON WITH THE 2018 BOND WAS WE HAD A LARGE DEMAND FOR RENTAL AND A SMALLER DEMAND FOR OWNERSHIP.

SO, UH, WE TRIED TO BORROW FROM ONE, BUT THEN BALANCING THE BOOKS AT THE END OF THE DAY JUST GOT A LITTLE HAIRY.

SO, UM, WE'VE PUT A, UH, A FIREWALL BETWEEN ALL OF THOSE BUCKETS TO ENSURE THAT WE'RE SPENDING THE DOLLARS AS THEY WERE APPROVED BY THE, UH, VOTERS.

UH, BUT AGAIN, THIS BALLOT LANGUAGE GIVES US A LITTLE BIT MORE FLEXIBILITY TO SAY WHERE THE NEED IS, UM, AND, UH, TO ASSIGN IT AS, UH, AS NECESSARY, WHICH WE WILL BE BRINGING, UH, TO THE COUNCIL, UH, HOPEFULLY WITHIN THE NEXT COUPLE OF MONTHS.

THE NEXT SLIDE.

SO THESE ARE THE FOUR, UH, AREAS IN WHICH WE WILL BE SPENDING THOSE FUNDS.

THESE ARE THE EXACT SAME AREAS THAT WERE COVERED IN THE 2018 BONDS.

UH, ONE POINT OF ONE NOTE I WOULD, UH, LIKE TO POINT OUT IS, UM, AT THE BEGINNING OF THE 2018 BOND, UH, ALLOCATION PROCESS, THE AWARD PROCESS, THE MAJORITY OF THE APPLICANTS, UH, WERE WHAT WE CALL REPEAT CUSTOMERS.

UH, THEY HAD, UH, UM, BEEN AWARDED AN RH HDA A OR O HDA A AWARD, UH, PREVIOUSLY, AND THEN AS SOON AS THE BONDS WERE AVAILABLE, UH, THEY GET TO FILL, FILL THEIR GAP EVEN FURTHER.

UM, WE EXPECT TO SEE MORE REPEAT CUSTOMERS, UH, EARLY ON IN, UH, THE 2022

[01:00:01]

GEO BOND PROGRAM.

UH, BUT HOPEFULLY NOT AS MANY.

UH, SINCE WE HAD A VERY LARGE, UH, ALLOCATION AND AWARD, UH, IN AUGUST OF LAST YEAR, UM, WE'RE HOPING THAT, UH, WE'VE, WE'VE FILLED EVERYBODY UP ENOUGH TO WHERE THEY CAN, THEY CAN SURVIVE FOR A LITTLE BIT, UM, EVEN THOUGH PRICES HAVEN'T GONE UP.

AND, UH, TO THE COMMISSIONER'S POINT, WE CAN'T CONTROL THE PRICE OF WOOD TO, UH, WE'LL GO TO THE NEXT SLIDE.

SO THESE ARE THE FOUR, UH, UH, AREAS THAT WE'LL BE SPENDING.

UH, AGAIN, THE FIRST LAND ACQUISITION.

NOW LAND ACQUISITION ISN'T OPPORTUNITY BASED DECISIONS.

UM, YOU KNOW, ANY, UH, PURCHASE REQUIRES WILLING BUYER AND A WILLING SELL.

UH, WE HAVE BEEN LUCKY ENOUGH TO, UH, BE APPROACHED BY, UH, SEVERAL, UH, SELLERS WHO, UH, WERE NOT IN THE MARKET YET, BUT KNEW THAT THEY WANTED TO SELL THEIR, UH, LAND FOR AFFORDABLE HOUSING.

UM, AND THAT IS AN OPPORTUNITY THAT, THAT WE JUST, IT'S, IT'S AN AMAZING OPPORTUNITY THAT WE CAN'T MISS.

UM, SO FOR A COUPLE OF THOSE, WE'VE USED OUR GEO BONDS FOR, UH, FOR SOME, WE'VE USED OUR, UH, PROJECT CONNECT FUNDS, UH, WHERE WE PURCHASE PROPERTY RAW LAND.

WE WILL DEVELOP THAT THROUGH THE SOLICITATION PROCESS.

UM, OUR STAFFING CAPACITY, UH, FOR OUR REAL ESTATE TEAM, WE CAN ISSUE A THREE TO FOUR SOLICITATIONS PER YEAR.

AND THAT'S, IF WE HAVE NOTHING ELSE GOING ON, UM, WITH, UH, UH, WHAT WE HOPE TO SEE IN THE NEXT, UH, TWO YEARS, IS TO REALLY MAXIMIZE THAT TO FOUR SOLICITATIONS PER YEAR.

UM, AND, UH, IF THERE IS ADDITIONAL STAFF AVAILABLE, UH, THEN PERHAPS WE CAN ISSUE MORE SOLICITATIONS.

UM, A CHALLENGE WILL BE WE DON'T WANNA FLOOD THE MARKET, UM, IN 2018, UH, THOSE GEO BONDS FOR THE LAND ACQUISITION WERE FRONT LOADED, UH, OR THEY WERE ALLOCATED EARLIER, UH, THAN, UM, LOTS ALLOCATED IN THE BEGINNING, NOT SO MUCH AT THE END.

THAT MADE A LOT OF SENSE BECAUSE AGAIN, WE NEED THE FUNDS TO BE AVAILABLE WHEN THE OPPORTUNITY ARISES.

UM, AND NORMALLY THOSE FUNDS ARE EXTENDED WITHIN JUST A COUPLE OF MONTHS OF THE ENCUMBRANCE, WHICH HAPPENS AFTER WE GO TO THE AUSTIN HOUSING FINANCE CORPORATION BOARD.

UH, SO WE HAVE, UH, BEEN TO THE BOARD IN DECEMBER, UH, FOR A NUMBER OF, OF, UH, ACQUISITIONS, BOTH USING GEO BONDS AND PROJECT CONNECT.

I WOULD EXPECT ALL OF THOSE, UH, UM, ACQUISITIONS TO CLOSE WITHIN ABOUT SIX MONTHS, MAYBE, MAYBE 10 MONTHS.

UM, THE CHALLENGE THAT WE HAVE IS LAND PRICES CONTINUE TO GO UP.

THE OPPORTUNITY THAT WE HAVE IS THAT WE ARE NOW, NOW COMPETING WITH PEOPLE WHO HAVE HIGHER BORROWING COSTS.

SO IT'S ALWAYS A BALANCE IN TERMS OF, UH, WHERE WE CAN ACQUIRE AND WHAT WE CAN ACQUIRE AND HOW MUCH IT'S GONNA COST.

UM, BUT OUR MARKET MOVES A LITTLE BIT DIFFERENTLY THAN THE TRADITIONAL, UH, MARKET WITH WHOM WE'RE COMPETING IN THE NEXT SLIDE, AGAIN, AGAIN, OUR RENTAL HOUSING DEVELOPMENT ASSISTANCE PROGRAM.

UH, WE DO INTEND TO INVEST OR USE, UM, A LARGE PORTION OF THE 350 MILLION FOR THIS PROGRAM.

UH, THIS PROGRAM FUNCTIONS UNDER QUARTERLY REVIEW CYCLE.

WE'VE GOT A, UH, A CYCLE, AN APPLICATION CYCLE THAT WILL BEGIN AT THE BEGINNING OF FEBRUARY, UH, THAT WE HOPE TO BE ABLE TO AWARD SOME 2022 GEO BONDS IN MAY.

UM, HOWEVER, THAT IS NOT OUR ONLY FUNDING SOURCE.

WE HAVE OUR, OUR HOME, UH, FEDERAL ALLOCATION.

WE HAVE HOUSING TRUST FUND, WE HAVE PROJECT CONNECT DOLLARS, UM, AND WE ARE TRYING TO RECYCLE OUR 20 2006 AND 2013 AND 2 20 18 GENERAL OBLIGATION BONDS.

WHEN A PROPERTY EXPERIENCES A CASH EVENT, EITHER THEY SELL OR THEY, UH, UM, THEY REFINANCE.

UM, WE DON'T WANT OUR PROPERTY MANAGERS, OR WE DON'T WANT OUR DEVELOPERS TO SEE OUR AFFORDABLE HOUSING INVESTMENTS AS A PIGGYBACK.

UM, IF, UH, IF A CASH EVENT IS OCCURRING, THEN WE WOULD LIKE TO BE ABLE TO REPAY SOME OF THAT LOAN SO THAT THEN WE CAN REINVEST IT IN OTHER AFFORDABLE HOUSING ELSEWHERE.

UM, AGAIN, TO THE, UH, TO THE PREVIOUS PRESENTATION POINT, INCREASED DEVELOPMENT COSTS ARE AFFECTING EVERYWHERE, ARE AFFECTING US EVERYWHERE IN AN ALL OF OUR DEVELOPMENTS.

UH, WHAT, WHAT WAS A $4 MILLION AVERAGE AWARD AT THE BEGINNING OF THE 2018? GEO BONDS HAS INCREASED TO SEVEN EIGHT.

UM, I'VE BEEN TELLING MY, UH, EXECUTIVE TEAM THAT WE NEED TO BE PREPARED FOR 10 MILLION AWARDS, UM, JUST BECAUSE OF THE PRICE OF, OF, UH, UH, DEVELOPMENT.

UM, NOW AS THAT PRICE FLUCTUATES, HOPEFULLY OUR, UH, OUR INVESTMENT WILL, UH, DECREASE.

UM, HOWEVER, DUE TO LIMITED INCREASES IN COMPLIMENTARY FUNDING SOURCES, AND BY THAT I MEAN, UH, THE LOW INCOME TASING TAX CREDIT PROGRAM.

UH, THE 9% AWARD WAS RECENTLY INCREASED FROM, UH, 1.5 MILLION, UH, PER YEAR TO 2 MILLION PER YEAR FOR DEVELOPMENT.

SO NOT TO GET TWO INTO THE WEEDS, THAT'S ESSENTIALLY A, UH, UM,

[01:05:01]

INCREASING FROM 15 MILLION IN EQUITY FOR A 9% TAX CREDIT PROPERTY TO 20 20 MILLION IN EQUITY.

UM, THAT'S GREAT FOR US, BUT THAT MEANS THAT WE'RE STILL PROBABLY GONNA HAVE TO BRING IN SIX OR 7 MILLION ON THE BACK AGAIN, UH, WHICH PREVIOUSLY HAD BEEN THREE OR FOUR.

NOW, WHEN WE ARE INVESTING IN THESE PROPERTIES, WE'RE NOT THE ONLY, UH, INVESTOR, WE'RE NOT THE ONLY FUNDING SOURCE, AND ALL OF THE OTHER FUNDING SOURCES HAVE, UH, STRICT HEADLINES THAT COME WITH THEM, PARTICULARLY OUR, UH, LOW INCOME HOUSING TAX CREDIT, AND OUR PRIVATE ACTIVITY BONDS.

SO WE DO EXPECT TO SEE ANY FUNDS THAT WE AWARD AND ENCUMBER, UH, SHOULD BE SPENT WITHIN THREE YEARS OF THAT ENCUMBRANCE.

GO TO THE NEXT SLIDE.

AGAIN, WE HAVE OUR OWNERSHIP, HOUSING DEVELOPMENT ASSISTANCE, THE SISTER PROGRAM OF THE RH H D A, UM, AGAINST ON THE SAME QUARTERLY REVIEW CYCLE, UH, SIMILAR FUNDING SOURCES ARE UTILIZED.

WE DO USE OUR HOME FUNDS, UH, MORE FOR OUR OWNERSHIP, UH, HOUSING DEVELOPMENT ASSISTANCE, UM, BECAUSE THAT'S WHERE OUR, OUR CDCS AND OUR COMMUNITY HOUSING DEVELOPMENT ORGANIZATIONS OR CHO PHOTOS, UH, THAT'S THE MARKET THAT THEY TEND TO, UH, PREFER.

UM, THESE ARE NORMALLY SMALLER DEVELOPERS, SMALLER DEVELOPMENTS, UM, BUT WE ALSO, UH, FUND HABITAT FOR HUMANITY, WHICH IS NOT A SMALL DEVELOPER BY ANY MEANS, UM, THROUGH OUR OH, HDA PROGRAM.

NOW, AGAIN, THE LONGER DEVELOPMENT TIME FOR SINGLE FAMILY DEVELOPMENTS, UH, IS DUE TO THE, UH, DUE TO THE, UH, CONSTRUCTION TYPE, UH, THAT, THAT, UH, THESE TYPES OF UNITS REQUIRE.

UM, SO EVEN THOUGH WE DO SEE A NEED, UM, AND WE HAVE THE ABILITY TO FUND, AND WE HAVE, UH, DEVELOPERS WHO ARE, WHO ARE WILLING TO PURSUE, WE KNOW THAT IT DOES TAKE ADDITIONAL TIME, UH, FOR THOSE UNITS TO COME ONLINE AND FOR THOSE FUNDS TO BE EXPENDED.

NEXT SLIDE.

AND THEN FINALLY, WE HAVE OUR HOME REPAIR PROGRAMS. NOW, THESE PROGRAMS ARE, UM, MANAGED THROUGH CONTRACTS WITH NONPROFIT ORGANIZATIONS.

UH, THERE ARE MULTIPLE PROGRAMS WITH VARIOUS FUNDING SOURCES.

THAT'S EVERYTHING FROM PRIVATE LATERAL EXTENSIONS, UH, THAT ARE FUNDED, UH, THROUGH, UH, AUSTIN WATER, UH, TO OUR, UM, UH, HOME REPAIR LOAN PROGRAMS, WHICH IS, UH, FUNDED WITH FEDERAL FUNDS.

UH, OUR GENERAL OBLIGATION OR GO REPAIR PROGRAM, UH, IS THE PRIMARY FOCUS, UH, FOR TODAY, BUT WE ALSO FUND A COUPLE OF OTHER PROGRAMS THROUGH THAT, UH, FUNDING SOURCE.

WE ARE EXPLORING RECOMMENDATIONS TO INCREASE PRODUCTIVITY SO THAT INSTEAD OF 200, UH, UNITS IN OUR GO REPAIR PROGRAM, PERHAPS WE CAN SEE MORE.

UM, I'D LIKE TO GET TO THE POINT WHERE WE'RE DOING THREE E 400 POSSIBLY.

UM, NOW, ONCE WE GET OUR, UH, PRODUCTIVITY UP TO SPEED AND GET, UH, GET THINGS WORKED OUT A LITTLE BIT BETTER IN-HOUSE, AND WITH OUR, UH, UM, UH, NON-PROFIT ORGANIZATIONS, UH, WE SHOULD BE ABLE TO SPEND ALL OF THE FUNDS THAT ARE ENCUMBERED WITHIN THE FISCAL YEAR, UH, THAT THEY ARE ENCUMBERED.

WE ARE WORKING TO ALIGN ALL OF OUR, UH, CONTRACTS ACCORDING TO THE SAME FISCAL YEAR RIGHT NOW.

THEY'RE ALL KIND OF START AND STOP IN DIFFERENT POINTS IN, IN THE YEAR.

SO WE'RE WORKING TO ALIGN EVERYTHING AND GET, GET A LITTLE BIT BETTER ORGANIZED.

GO AHEAD.

THE NEXT SLIDE.

SO THOSE ARE THE PROGRAMS THROUGH WHICH WE WILL BE DEPLOYING THESE BONDS.

UH, THESE ARE THE NEXT STEPS THAT WE HAVE FOR, UH, UM, TO, TO ALLOCATE.

FIRST, WE HAVE AN INTER PART INTERDEPARTMENTAL MEETING, UH, TO RECOMMEND THE IMPLEMENTATION PLAN.

SO WE'RE HOPING TO HAVE AN EARLY FEBRUARY, AND THAT WOULD, THAT INCLUDES INDIVIDUALS FROM OUR LAW DEPARTMENT.

UM, THAT, UM, IS VAN, WE, UH, IS, IS, UH, ONE OF OUR REQUIRED, UH, UH, PEOPLE TO BE THERE, UH, AS WELL AS OUR FINANCE TEAM AND OUR EXECUTIVE TEAM IN THE, IN OUR PROGRAM STAFF, UM, IN THE HOUSING AND PLANNING DEPARTMENT.

UH, ONCE WE HAVE THAT RECOMMENDATION, UH, AGREED TO, THEN, UH, COUNSEL WILL TAKE ACTION ON THE BUDGET IN APRIL, 2023.

UM, AT THE SAME, AT THE SAME, UH, COUNCIL MEETING, OR SHORTLY THEREAFTER, AUSTIN HOUSING FINANCE CORPORATION WILL ISSUE A BUDGET AMENDMENT AND AMEND THE SERVICE AGREEMENT.

UH, AT THAT POINT, WE WILL BE ABLE TO START ALLOCATING THE, UH, THE BONDS.

UM, SO WE'RE LOOKING TO HAVE, UH, THE AHS E BOARD AWARD, THE FIRST 2022 GO BONDS, UH, TO AN RH H D A OR OH H D A APPLICATION IN MAY OF 2023, AND THEN TO CYCLE QUARTERLY AFTER THAT.

UM, SIMILARLY, WE HOPE TO ISSUE A, A NEW SOLICITATION FOR DEVELOPMENT OF AN RFC OF AN A HFC PROPERTY, UM, IN THE SUMMER OF 2023.

AND THEN, UH, JUST CYCLING THROUGH THE NEXT ONE AS THAT, UH, AS THAT IS COMPLETED.

AND THEN FINALLY, WE'RE GONNA ISSUE NEW CONTRACTS FOR OUR HOME REPAIR PROGRAMS IN THE FALL OF 2023, AGAIN, TO GET THINGS, UH, ALIGNED ALONG FISCAL, UH, FISCAL YEAR AND WITH EACH OTHER.

[01:10:02]

AND WITH THAT, I'D BE HAPPY TO ANSWER ANY QUESTIONS, ANY QUESTIONS FROM THE COMMISSION.

UH, JAMES, I JUST WANT THIS COMMISSIONER DROHAN, I JUST WANT TO THANK YOU FOR YOUR PRESENTATION.

I AM GOING TO HAVE TO TAKE AN EARLY LEAVE AND EXIT, SO I JUST WANTED TO MAKE A NOTE OF THAT.

UH, THANK YOU, COMMISSIONERS.

I'LL CATCH UP WITH EVERYONE AFTER THIS.

UM, AND WE HAVE TO RECAP, BUT, UH, THANKS.

UH, JUST WANTED TO MAKE A NOTE THAT I'LL BE EXITING HERE.

CORRU, I HAVE ONE QUESTION I HAD ON THE BALLOT LANGUAGE.

THE SLIDE WAS SLIGHTLY DIFFERENT IN THAT IT DID NOT MENTION THIS TIME, THE CONTRACT WITH THE VOTERS.

WAS THAT INCLUDED IN THE 22 BOND? THE, UH, UH, THE ALLOCATION OF THOSE, UH, FUNDS TO VARIOUS PROGRAMS? NO.

THE CONTRACT WITH THE VOTERS TO COMPLETE THE, UH, BONDS WITHIN THE EIGHT YEARS.

UM, I, I THINK WHAT, UH, COMMISSIONER CURRY IS REFERRING TO IS THAT, UM, I'M NOT FAMILIAR WITH THE 22 PROGRAM QUITE YET, UM, BUT, UM, IN PRIOR BOND PROGRAMS, THERE WAS A SEPARATE RESOLUTION APPROVED BY COUNCIL, WHICH GOT TO SOME MORE SPECIFICITY ABOUT THE PROGRAMS AND HOW, UM, UH, THE, THE DOLLARS WOULD BE SPENT.

JUST SOME MORE SPECIFICITY THAN THE VALID LANGUAGE.

UM, AND I, I THINK THAT'S WHAT YOU'RE REFERRING TO.

MM-HMM.

.

AND, UM, JUST TO NOTE THAT, UM, THE WEBSITE THAT WE DO HAVE FOR OUR PUBLIC IMPROVEMENT BONDS, ONCE ALL THAT INFORMATION IS COLLECTED, WE WILL ADD THAT, THE 2022, UM, TO THE WEBSITE.

UM, WE JUST, I HAVEN'T GOTTEN INTO THE DETAILS OF THAT, BUT JAMIE MAY HAVE MORE, MORE INFORMATION.

I DO NOT, UH, I THINK I'M, UH, UH, BUT I CAN PULL, UH, SOME INFORMATION AND SEE IF I CAN GET ANY, ANYTHING BACK FOR YOU AS SOON AS POSSIBLE.

OKAY.

THANK YOU.

ANY OTHER QUESTIONS? IF

[6. Staff Briefing from Development Services Department on the creation of the Public Project Review Team. ]

NOT, WE'LL GO TO THE SIX PRESENTATIONS, STAFF BRIEFING FROM DEVELOPMENT SERVICES ON THE CREATION OF THE PUBLIC PROJECT REVIEW TEAM.

HI, GOOD AFTERNOON COMMISSIONERS, AND THANKS FOR HAVING ME HERE TODAY.

UM, I'M TARA VIRE, AND I'M THE DIVISION MANAGER OVER THE PUBLIC PROJECTS REVIEW TEAM AND THE AFFORDABLE AND PERMANENT SUPPORTIVE HOUSING REQUEST TEAM AT D S D.

UM, I'M HERE TODAY TO TALK ABOUT THE, UM, IMPLEMENTATION OF THE PUBLIC PROJECT REVIEW TEAM.

NEXT SLIDE, PLEASE.

SO, OUR TEAM'S MISSION IS TO PROPERLY STEWARD FINANCIAL RESOURCES OF CAPITAL AND PUBLICLY FUNDED PROJECTS BY PROVIDING A TIMELY AND COLLABORATIVE PERMITTING REVIEW PROCESS.

UM, SO THIS TEAM WILL NOT ALTER THE VOLUME OF THE PROJECTS THAT NEED TO BE PERMITTED, BUT RATHER CREATE A SEPARATE DEDICATED LANE FOR THESE PRIORITIZED PROJECTS.

NEXT SLIDE, PLEASE.

SO, TO GIVE YOU, UM, AN IDEA OF HOW COMPLEX THE PERMITTING REVIEW REQUIREMENTS CAN BE HERE, UM, HERE'S AN EXAMPLE OF, UH, ALL THE POSSIBLE DEPARTMENTS AND REVIEWS THAT CAN OCCUR ON A SITE PLAN REVIEW.

UM, YOU'LL SEE THAT DEPARTMENTS RANGE FROM AUSTIN ENERGY TO AUSTIN TRANSPORTATION, UH, WATERSHED LAW.

UM, EACH DEPARTMENT THEMSELVES MAY HAVE SEVERAL REVIEWS, WHICH THEY, UH, CONDUCT WITHIN THE PERMITTING REVIEW PROCESS BY VARYING STAFF.

UM, NEXT SLIDE PLEASE.

SO, OUR, OUR, OUR TEAM HAS IDENTIFIED THESE, UH, CHALLENGES IN THE EXISTING PROCESS.

UM, THE PROCESS TIMELINE AND REVIEW VOLUMES, WIDESPREAD DELAYS IN REVIEWS ACROSS MULTIPLE DEPARTMENTS, COORDINATION AND SCHEDULING WITH REVIEWERS, AND THEN APPLYING CITY CODE CREATED FOR PRIVATE DEVELOPMENT ON C I P OR PUBLIC PROJECTS.

SLIDE PLEASE.

SO OUR IDENTIFIED OPTIMAL SOLUTION HERE IS TO BRING ALL THE REVIEW STAFF INTO A DEDICATED MULTI-DEPARTMENT REVIEW TEAM.

UM, THEY'LL HAVE A COMMON GOALS AND PRIORITIES AND, UM, YOU KNOW, FOCUSED EXPERIENCE ON REVIEWING, UM, THE C I P OR PUBLIC FUNDED LEAVE PROJECTS.

EXCUSE ME.

UM, NEXT SLIDE PLEASE.

SO, IN ADDITION TO THE DEDICATED REVIEW STAFF, UM, WE HAVE A PROPOSED MODIFIED DEVELOPMENT REVIEW PROCESS.

UM, SO YOU'LL SEE HERE THAT THERE'S SEVERAL ITERATIONS OF MEETING OPPORTUNITIES PRIOR TO THE SUBMITTAL OF THE FORMAL REVIEW.

UH,

[01:15:01]

THE IDEA WITH THIS IS INTENDED TO ABBREVIATE THE FORMAL REVIEW PROCESS BY FACILITATING COLLABORATIVE COMMUNICATIONS BETWEEN THE DESIGN TEAM AND THE REVIEW TEAM, UM, EARLIER ON IN THE PROCESS.

UM, YOU KNOW, THE ESSENTIAL, UM, IDEA IS TO, UM, OFFER INSIGHTS AND OBSERVATIONS FROM PERMIT REVIEW EXPERTS TO THE DESIGN TEAM, AGAIN, AS EARLY AS POSSIBLE.

THAT'S, THAT'S THE BIG, UM, TICKET ITEM HERE.

UM, SO CURRENTLY THAT THE WAY THAT PROJECTS ARE PROCESSED IS THAT THEY'RE DESIGNED UP TO 90 TO A HUNDRED PERCENT BEFORE BEING SUBMITTED.

SO WHEN THOSE PROJECTS ARE REVIEWED AND CODER CRITERIA IS NOT MET, IT'S HARDER TO MAKE THOSE CHANGES, UH, LATER ON IN THE DESIGN, AND THEY'RE MORE TIME CONSUMING AND TO ADDRESS THOSE ISSUES.

UM, SO WITH THESE PROPOSED CHANGES, HELP WILL HELP FUNNEL THE PROJECTS FROM CONCEPT TO CONSTRUCTION AS SMOOTHLY AS POSSIBLE.

NEXT SLIDE, PLEASE.

SO WE'VE TALKED ABOUT ALL THE, THE, YOU KNOW, THE GREAT THINGS THAT THIS TEAM WILL OFFER, SO I'M SURE YOU'RE WONDERING WHEN THIS TEAM WILL BE LAUNCHED.

UM, JUST TO PROVIDE SOME HISTORICAL BACKGROUND, UM, IN THE SUMMER OF 2022, DSD HELD A MEETING WITH THE CITY DEPARTMENTS INVOLVED IN THE REVIEW, UH, PROCESS TO BETTER UNDERSTAND THIS, UH, STAFFING RESOURCES THAT COULD SUPPORT THE PUBLIC PROJECTS TEAM.

UM, SO AFTER THAT MEETING, DST AND THE OTHER DEPARTMENTS, UM, THEY PUT TOGETHER REQUESTS FOR ADDITIONAL STAFFING IF IT WAS NEEDED, UM, AND IT WAS APPROVED IN THE FY 23 BUDGET.

UM, SO WITH THAT, THE BU THO THOSE POSITIONS WERE MADE AVAILABLE, UM, OCTOBER, 2022.

UH, SO WE ARE CURRENTLY IN THE RECRUITING AND HIRING PHASE, UM, OF THE IMPLEMENTATION PLAN.

UH, MULTIPLE DEPARTMENTS ARE DIFFERENT STAGES, SO IT'S HARD TO, TO GIVE A EXACT, UM, THIS IS WHERE WE'RE AT.

BUT, UM, OVERALL THE GOAL IS TO HAVE ALL THE POSITIONS POSTED BY THE END OF THIS MONTH AND HIRED, UH, THE FIELD SHORTLY AFTER.

UM, NEXT SLIDE, PLEASE.

SO THAT'S JUST HIGHLIGHTING.

YEAH, THERE WE GO.

OKAY.

SO FOR THE NEXT STEPS, UM, WHILE THE STAFF IS BEING TRAINED, THAT WE HIRE, UH, WE'LL HAVE A SERIES OF OUTREACH TO OUR CITY DEPARTMENTS, UM, INCLUDING, YOU KNOW, THEIR PROJECT MANAGERS, UH, TO TRAIN THEM ON THE NEW PROCESSES, PROCEDURES, AND TO SET NEW EXPECTATIONS IN THE, IN THE SPRING OF 2023.

NEXT SLIDE, PLEASE.

AND THEN, UH, FINALLY, ONCE ALL OF THE STAFF, UH, REVIEW STAFF AND APPLICANTS ARE TRAINED, WE ANTICIPATE THE LAUNCH OF THE PROGRAM IN LATE SPRING OR EARLY SUMMER, 2023.

UM, SO YEAH, WE'RE REALLY EXCITED FOR THIS PROGRAM, UM, AND THE SUPPORT IT WILL PROVIDE TO PUBLICLY FUNDED PROJECTS.

UM, AND I BELIEVE THAT THAT'S THE END OF THE PRESENTATION, SO HAPPY TO FACILITATE ANY QUESTIONS OR COMMENTS, QUESTIONS FROM THE COMMISSION.

HEARING NONE, THANK YOU FOR YOUR PRESENTATION.

WE'LL GO ON

[7. Discussion and possible action on permitting process for public safety projects. ]

THEN TO AB NUMBER SEVEN, DISCUSSION AND POSSIBLE ACTION ON PERMITTING PROCESS FOR PUBLIC SAFETY PROJECTS.

YEAH, THIS WAS AN ITEM THAT THE, UH, CHAIR, UH, BROUGHT UP.

AND I THINK HE, UM, IN HIS ABSENCE, Y'ALL MIGHT JUST CONSIDER POSTPONING THE ITEM OR, OR HAVING WHATEVER DISCUSSION Y'ALL WOULD LIKE TO HAVE AT THIS TIME.

BUT, UM, THAT WAS, THAT WAS ONE OF HIS ITEMS THAT HE WANTED TO, OH, YES, HE WAS GONNA, MM-HMM.

TESTIFY ON, I THINK FRONT COUNSEL.

I'M NOT SURE EXACTLY WHAT HIS PLAN WAS, BUT JUST TRYING TO REMEMBER.

YEAH.

YEAH.

I YOU WANNA NEED DISCUSSION FROM THE COMMISSION ON THIS ITEM? THERE'S NOT A SPECIFIC PROPOSAL ON THE TABLE AT THE MOMENT.

NO, I, AS I REC JUST THIS ANECDOTAL, AND I'M SORRY IF I'M GETTING OUTSIDE THE RULES OR SCOPE, BUT I DO RECALL THAT HE WANTED TO GET SOME FEEDBACK BEFORE HE MADE A PRESENTATION, UH, AS A MEMBER OF PUBLIC TO COUNSEL JUST AT, AT THE DAIS, AT A, AT A, AT A STANDARD MEETING.

WAS THAT RIGHT? UM, THERE, THERE'S ALSO AN OPTION OF, YOU KNOW, THIS COMMISSION CAN ALWAYS MAKE A RECOMMENDATION TO COUNSEL.

UM, THERE'S TEMPLATES FOR THAT TO BE ABLE TO, UM, TO DO THAT AS THIS BODY.

I GUESS THAT'S WHAT IT WAS.

YEAH.

OKAY.

YEAH.

THEN IF, IF IT FALLS UNDER OUR PREVIEW, I WOULD MOVE THAT WE TABLE IT TILL THE NEXT MEETING TO GET CLARITY AND, UH, FURTHER INPUT, IF THAT MAKES SENSE.

SECOND ON THE MOTION TO TABLE, MOTION IS MADE AND SECOND TO TABLE.

ALL THOSE IN FAVOR

[01:20:01]

SIGNIFY BY BLOODING, YOUR HAND MOTION CARRIES YOU UNANIMOUSLY.

UH, FUTURE

[FUTURE AGENDA ITEMS ]

AGENDA ITEMS, YOU WANNA HAVE A REQUEST FOR ADDITIONAL ITEMS ON THE AGENDA.

JUST TO NOTE, I THINK ON THE, UH, PLAN, UH, OF, OF THE WORK PLAN, UH, Y'ALL ADOPTED, THERE WAS A TRANSPORTATION AND MOBILITY, UM, UP NEXT TO BE HEARD.

UM, AND THEN ALSO THE BOARDS AND COMMISSIONS WERE EMAILED OUT JUST TODAY.

UM, UH, A MEMO FROM CARRIE LANG, OUR BUDGET OFFICER, ABOUT THE 24 BUDGET PROCESS AND CALENDAR.

THAT MAY BE SOMETHING, UM, UH, THAT Y'ALL CONSIDER ADDING TO THE AGENDA IN FEBRUARY, UM, AND OR MARCH.

UH, AS BOARD AND COMMISSION RECOMMENDATIONS ARE DUE TO THE BUDGET OFFICE MARCH 31ST, MY SUGGESTION WOULD BE THAT WE PUT IT ON THE FEBRUARY CALENDAR AS A DISCUSSION ITEM SO THAT EVERYBODY'S FAMILIAR, UH, WITH WHAT IS REQUIRED.

UM, BECAUSE ANYTHING THAT WE WERE GONNA DO IN ORDER TO MEET THE DEADLINE WOULD EITHER HAVE TO BE DONE IN A SPECIAL CALL MEETING OR WOULD HAVE TO BE ON THE MARCH AGENDA IN ORDER TO MEET THE DEADLINE ON THAT SCHEDULE.

UH, ONE ITEM THAT I WOULD LIKE TO HAVE, NOT NECESSARILY END THE NEXT MEETING, BUT I WONDERED IF WE COULD GET, UM, A BRIEFING FROM THE FINANCE DIRECTOR ON THE CONTRACT WITH VOTERS.

UM, BUT THE THOUGHT WAS BEHIND THAT, HOW THEY'RE WORDED.

THE SUBJECT HAS COME UP, AND I'VE GOTTA CONFESS THAT I'M NOT FAMILIAR.

IT'S JUST WE KEEP REFERRING TO IT, BUT I'M NOT FAMILIAR ENOUGH TO KNOW, UH, WHAT IT IS WE'RE REFERRING TO.

THAT WOULD BE MY REQUEST.

ANYTHING ELSE THERE? NO OTHER ITEMS ON THE AGENDA? DO I HEAR A MOTION TO ADJOURN? I WOULD SUE MOVE THAT WE ADJOURN.

MOTION TO ADJOURN.

IS THERE A SECOND? SECOND.

MOTION IS MADE AND SECONDED.

ALL THOSE IN FAVOR? SAME SON WITH THE RAISING YOUR HAND.

MOTION TO ADJOURN CARRIES.

CARRIES UNANIMOUSLY AND THE COMMISSION IS ADJOURNED AT THREE 30.