Apr 26, 2023 Audit and Finance Committee

CAN YOU HEAR ME? I CAN.

AND, UM, JUST FOR THOSE WHO ARE NEW TO THE COMMITTEE OR ARE WATCHING, LET ME JUST SAY THE, THE PRESENTATIONS THAT WE'RE GONNA HEAR TODAY.

UM, OUR PRESENTATIONS FROM OUR EXTERNAL AUDITOR, WHICH IS DELOITTE AND TWO SH.

UM, ONE IS GONNA BE THE COMPREHENSIVE COMPREHENSIVE FINANCIAL REPORT, WHICH WE HEAR EACH SPRING.

AND AS WELL, WE'RE GONNA HEAR THE SINGLE AUDIT REPORT, WHICH LOOKS AT HOW WE'RE DOING IN COMPLYING WITH OUR OUR GRANT PROCESS.

GOOD MORNING COUNCIL MEMBERS.

MY NAME IS MARIA YUKA.

I'M THE CITY CONTROLLER.

UH, I AM HERE TODAY WITH TRACY COOLEY AND CAMERON DECKER WITH DELOITTE ANTU TO PRESENT THE RESULTS OF THE, UH, CITY'S COMPREHENSIVE FINANCIAL REPORT AND SINGLE AUDIT FOR FISCAL YEAR 2022.

THE AFER REPORT WAS ISSUED ON MARCH 8TH, 2023, AND IT IS AVAILABLE ON US IN FINANCE ONLINE.

UM, ON THE WEBSITE LISTED, UM, ON THIS SLIDE, THE REQUIREMENTS FOR AN ANNUAL AUDIT ARE OUTLINED ON THIS SLIDE, AND THE CITY IS IN COMPLIANCE WITH EACH OF THESE REQUIREMENTS.

THE SINGLE AUDIT, OR THE GRANTS AUDIT WAS ISSUED ON APRIL 24TH, 2023.

AND IT IS ALSO AVAILABLE ON AUSTIN FINANCE ONLINE ON THE FOLLOWING, UH, WEBSITE.

AND THE SINGLE AUDIT REQUIREMENTS ARE ALSO LISTED ON THE SLIDE, AND THE CITY IS IN COMPLIANCE WITH ALL THESE REQUIREMENTS.

AND LAST, I WANT TO THANK THE, THE MAYOR AND COUNCIL MEMBERS FOR CONTINUED SUPPORT OF THE CITY'S GOAL OF EXCELLENCE IN ALL ASPECTS OF FINANCIAL MANAGEMENT, THE CITY MANAGER AND HIS EXECUTIVE TEAM, UH, THE CFO AND DEPARTMENT DIRECTORS FOR SUPPORT OF THE CONTROLLERS TEAM AND SUPPORT AND EXCELLENCE OF FINANCIAL MANAGEMENT, CITY STAFF, ESPECIALLY THE FINANCIAL SERVICES DEPARTMENT, ACCOUNTING AND REPORTING TEAM FOR THEIR MANY HOURS OF DEDICATED SERVICE TOWARDS THE COMPLETION OF THESE REPORTS.

AND THEN DELOITTE FOR THEIR PROFESSIONAL AND THOROUGH MANNER, WHICH THEY CONDUCTED THESE AUDITS.

SO TRACY AND CAMERON WILL NOW TAKE OVER THE PRESENTATION.

SO WE HAVE ONE DEFICIENCY, SIGNIFICANT DEFICIENCY THAT WE NOTED RELATED TO THE SINGLE AUDIT PROGRAMS. AND THIS HAS TO DO SPECIFICALLY WITH THE IMMUNIZATION OUTREACH PROGRAM.

GOOD MORNING EVERYONE.

I'M TRACY COOLEY WITH DELOITTE, AND I'M THE MANAGING DIRECTOR RESPONSIBLE FOR SERVICES THAT WE PROVIDE TO THE CITY.

AND CAMERON AND I WILL GO OVER THE RESULTS OF THE AUDITS THAT WE'VE CONDUCTED.

UH, WE WON'T COVER EVERY SLIDE IN THIS DECK, BUT AS WE GO ALONG, IF THERE ARE QUESTIONS, PLEASE, UH, JUST STOP US AND WE'LL ANSWER THOSE QUESTIONS AS WE GO ALONG.

SO I WILL TURN IT OVER TO CAMERON, UH, TO BEGIN THE PROCESS.

THANK YOU, TRACY.

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

I'M GONNA START OFF WITH THE FINANCIAL AUDIT THAT WE, UH, ISSUED OUR OPINION ON ON MARCH 8TH.

AS MARIA MENTIONED, UH, THIS FIRST SLIDE TALKS ABOUT OUR RESPONSIBILITY UNDER GENERALLY ACCEPTED AUDITING STANDARDS.

THOSE ARE THE STANDARDS WITH WHICH WE CONDUCT OUR AUDIT, AS WELL AS, UH, GOVERNMENT AUDITING STANDARDS, UH, DUE TO THE SINGLE AUDIT THAT WAS, UH, MENTIONED EARLIER.

JUST A COUPLE OF QUICK THINGS RELATED TO, UH, OUR AUDIT.

UH, WE DO NOT AUDIT THE COMPONENT UNITS OF THE,

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UM, UH, OF THE CITY.

THOSE ARE AUDITED BY OTHER AUDITORS, AND WE HAVE INCLUDED WITHIN OUR OPINION, A REFERENCE TO THOSE AUDITORS.

UM, ALSO JUST, AGAIN, IT'S AN UNMODIFIED OPINION, WHICH, UH, THAT'S A GOOD THING.

I KNOW IT SOUNDS A LITTLE ODD, BUT THAT'S THE LANGUAGE THAT THE AI CPA HAS GIVEN US.

UH, AN UNMODIFIED OR CLEAN OPINION IS HOW WE WOULD DESCRIBE THE OPINION, UH, ON THE FINANCIAL STATEMENTS AS WE MOVE FORWARD.

WE JUST WANNA HIGHLIGHT A FEW THINGS RELATED TO THE FINANCIAL AUDIT.

THE FIRST OF THOSE IS, UH, THE SIGNIFICANT ACCOUNTING POLICIES THAT ARE SET FORTH BY MANAGEMENT.

THERE HAVE BEEN NO CHANGES TO THOSE POLICIES THIS YEAR, EXCEPT FOR THE IMPLEMENTATION OF A COUPLE OF NEW ACCOUNTING STANDARDS.

UM, WE'VE HIGHLIGHTED HERE GABY 87 RELATED TO LEASING.

THAT WAS THE, UH, A LARGE STANDARD THAT WAS IMPLEMENTED BY MANAGEMENT THIS YEAR AND OBVIOUSLY WAS SUBJECT TO PART OF OUR AUDIT, UH, AS WELL.

AND THEN WE ALSO CALL OUT THE SIGNIFICANT ACCOUNTING ESTIMATES THAT MANAGEMENT HAS, UH, USED IN CREATING THOSE FINANCIAL STATEMENTS.

WE WON'T GO THROUGH THOSE IN DETAIL.

WE HAVE INCLUDED AS APPENDIX B, UH, WHAT THOSE, HOW THOSE, UH, ESTIMATES ARE PULLED TOGETHER.

AND THEN OUR AUDIT RESPONSE ASSOCIATED WITH EACH OF THOSE.

THE, THE ITEMS THAT WE HAVE CALLED OUT HERE ARE THE OPEB AND PENSION LIABILITIES, WHICH ARE PUT TOGETHER BY ACTUARIES FROM THAT ARE ENGAGED BY THE CITY.

AND THEN WE HAVE OUR ACTUARIAL SPECIALISTS AS WELL.

LOOK AT THOSE.

THE ASSET RETIREMENT OBLIGATIONS RELATED TO ENVIRONMENTAL LIABILITIES, SAME THING.

WE HAVE OUR, OUR SPECIALISTS HELP US, UH, LOOK AT THOSE.

OUR DELOITTE INTERNAL SPECIALISTS ARE PART OF OUR TEAM.

AND THEN THE LAST ONE THERE THAT WE HAVE CALLED OUT IS, UH, THE DEFERRED AMOUNTS RELATED TO REGULATED OPERATIONS.

UH, A COUPLE OF QUICK THINGS TO CALL OUT RELATED TO MISSTATEMENTS.

UM, WE PERFORM OUR AUDIT TO OBTAIN REASONABLE ASSURANCE FOR THE ABSOLUTE ASSURANCE ABOUT THE FINANCIAL STATEMENTS BEING FREE OF MATERIAL MISSTATEMENT.

AS PART OF OUR AUDIT, WE DID ACCUMULATE ONE UNCORRECTED MISSTATEMENT THAT IS INCLUDED IN APPENDIX C, WHICH IS MANAGEMENT'S REPRESENTATION LETTER.

UH, AND THAT INCLUDES ONE, UH, UNCORRECTED MISSTATEMENT, VERY MINOR TO THE OVERALL, UH, OPERATIONS OF THE CITY.

AND THEN WE'RE HAPPY TO REPORT THAT THERE WERE NO MATERIAL CORRECTED MISSTATEMENTS AS PART OF THIS YEAR'S AUDIT.

THE NEXT COUPLE OF SLIDES GO THROUGH THE VARIOUS LEVELS OF ASSURANCE THAT WE PROVIDE ON WHAT I'LL CALL THE NON-CORE PIECES OF THE FINANCIALS.

THESE INCLUDE THE REQUIRED SUPPLEMENTARY INFORMATION SUCH AS MD, MDNA, AS WELL AS THE PENSION AND OPEB SCHEDULES AT THE BACK, THE SUPPLEMENTARY INFORMATION, AND THEN OTHER INFORMATION.

I'LL LEAVE EVERYONE, UH, TO READ THOSE, OR IF YOU HAVE SPECIFIC QUESTIONS, WE CAN ADDRESS THOSE.

THIS SLIDE IS ONE OF MY FAVORITES.

UM, , WE, WE GET TO THE, THE OPPORTUNITY TO SAY THAT WE, UH, WORKED WELL WITH MANAGEMENT AND MARIA AND HER TEAM WERE A PLEASURE TO WORK WITH AGAIN THIS YEAR.

THEY'RE INTEGRAL TO OUR COMPLETION OF THE AUDIT WITH THE AMOUNT OF SUPPORT THAT THEY HAVE TO PROVIDE.

AND SO WE WOULD LIKE TO THANK MARIA AND THE TEAM.

WE, AS PART OF OUR GAS AUDIT, THE GOVERNMENT AUDITING STANDARDS, WE DO LOOK AT, UM, CONTROLS AS IT RELATES TO, UM, THE FINANCIAL REPORTING AND, AND COMPLIANCE.

AND THIS IS NOT A, AN OPINION ON CONTROLS, BUT THIS IS A REPORT ON, UH, THE DESIGN AND IMPLEMENTATION, UH, PROCEDURES THAT WE PERFORM, THAT WE CONDUCT AS PART OF OUR FINANCIAL AUDIT.

UM, IN APPENDIX D YOU WILL SEE THAT THERE ARE DEFINITIONS FOR THE VARIOUS LEVELS OF DEFICIENCIES, UH, THAT ARE PUT FORTH BY THE AI CPA.

UH, WE DID IDENTIFY ONE SIGNIFICANT DEFICIENCY RELATED TO, UH, THE IMPLEMENTATION OF LEASE ACCOUNTING THIS YEAR.

THIS WAS A LARGE STANDARD THAT WAS IMPLEMENTED FOR THE CITY WITH A NUMBER OF AGREEMENTS THAT CITY MANAGEMENT HAD TO GO THROUGH, UH, NSS FOR THESE NEW STANDARDS.

THE EFFECT OF THIS STANDARD WAS EFFECTIVELY JUST A GROSS UP ON YOUR BALANCE SHEET, UH, ADDING ON SOME LIABILITIES AND DEFERRED INFLOWS OF RESOURCES, UM, AS WELL AS RIGHT TO USE ASSETS.

WE IDENTIFIED, UH, A HANDFUL, I GUESS, UH, OF, OF ERROR'S INPUT IN THAT, UM, AS THOSE LEASES WERE GOING THROUGH.

BUT AGAIN, HAPPY TO REPORT THAT THE INPUT ERRORS IDENTIFIED DID NOT RESULT IN A MATERIAL IMPACT TO THE CITY AS A WHOLE.

SO WE'VE JUST CALLED THIS OUT, UH, IN OUR FINDING AND, AND HAVE OUR, UH, OR MANAGEMENT'S RESPONSE ACCOMPANYING THAT, I'LL TURN IT BACK TO TRACY AND SHE'S GONNA COVER THE SINGLE AUDIT AND A COUPLE OF OTHER AUDITS.

THANKS, CAMERON.

SO THE SINGLE AUDIT, UM, THIS REALLY RELATES TO THE COMPLIANCE ON THE FEDERAL AND STATE PROGRAMS. WE DO BOTH A FEDERAL SINGLE AUDIT AS WELL AS A STATE SINGLE AUDIT.

THESE WERE ISSUED ON MONDAY.

UM, SO THEY'RE HOT OFF THE PRESSES AND THEY WERE UNMODIFIED OR CLEAN OPINIONS AS IT RELATES TO COMPLIANCE FOR THE MAJOR PROGRAMS. UM,

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LIKE MANY GRANTS, THIS GRANT DOES REQUIRE REPORTING BACK TO THE GRANT TOURS, WHETHER IT'S, UM, YOU KNOW, QUALITATIVE FINANCIAL INFORMATION OR, YOU KNOW, ANY TYPE OF OTHER INFORMATION RELATED TO THE GRANT'S PROGRESS.

WHEN WE LOOKED AT THE REPORTING FOR THIS GRANT, WE NOTED THAT FOR TWO OF THE, TWO OF THE SEPARATE GRANTS, THE QUARTERLY REPORTS IN TWO INSTANCES WERE NOT FILED.

UM, MANAGEMENT ALSO WAS AWARE OF THAT, UM, AND THEY FOUND IT, I THINK RIGHT BEFORE WE DID.

AND HA HAS REALLY RECTIFIED THE PROCESS TO MAKE SURE THAT THEY'RE ABLE TO COMPLETE THESE REPORTS AND SUBMIT THEM ON TIME TO THE GRANTING AGENCIES.

AS FAR AS THE, THE SCOPE OF THE SINGLE AUDIT, FROM A FEDERAL PROGRAM STANDPOINT, THE CITY EXPENDED ALMOST 200 MILLION IN FEDERAL EXPENDITURES.

IN FISCAL 22, OUR AUDIT AND THE FOCUS OF OUR AUDIT IS REALLY MORE ON WHAT THE CITY SPENT RATHER THAN WHAT THEY'VE BEEN AWARDED.

SO, YOU KNOW, FOR THE CSL F R F, THERE WAS A LOT OF MONEY RECEIVED IN ADVANCE.

WE'RE MORE FOCUSED ON AUDITING THAT ONCE IT'S SPENT.

SO THIS REALLY IS THE SPEND RATHER THAN THE AWARD THAT WE'RE FOCUSED ON FOR OUR AUDIT.

THESE WERE THE MAJOR PROGRAMS THAT WE SELECTED FOR TESTING DURING THE FISCAL YEAR.

AND YOU CAN SEE A LOT OF THESE ARE STILL RELATED TO SOME OF THE PANDEMIC FUNDING THAT THE CITY HAD RECEIVED, UM, DURING FISCAL 22.

AND THEN ON THE STATE SIDE, SIGNIFICANTLY FEWER, UM, EXPENDITURES, UH, ROUGHLY 4.5 MILLION.

AND THESE WERE THE STATE PROGRAMS THAT WE SELECTED FOR TESTING.

OTHER AUDITS THAT WE'VE, UH, CONCLUDED, ONE IS THE PASSENGER FACILITY CHARGES REPORT.

THIS WAS A COMPLIANCE REPORT THAT IS SUBMITTED TO FAA BASED ON HOW THE CITY IS SPENDING.

THE PFC IS COLLECTED AT THE AIRPORT.

THAT REPORT WAS ISSUED, UM, MONDAY AS WELL.

NO FINDINGS, NO COMMENTS ON THAT REPORT.

AND THEN LASTLY, WE, UM, ARE INVOLVED WITH AN AGREED UPON PROCEDURES REPORT THAT THE CITY NEEDS TO SUBMIT TO T C Q.

UH, THAT REPORT WAS FILED TIMELY AS WELL, WITHOUT ANY MODIFICATIONS.

AS CAMERON MENTIONED, THERE ARE SOME APPENDICES ATTACHED TO OUR PRESENTATION, UM, WHERE WE WEREN'T GONNA GO THROUGH THOSE UNLESS THERE WERE SPECIFIC QUESTIONS, BUT IT'S JUST ADDITIONAL INFORMATION, UH, RELATED TO THE AUDIT AND JUST A LITTLE BIT MORE OF DEEPER DIVE IN THE ACCOUNTING ESTIMATES AND ALSO INCLUDES THE REPRESENTATION LETTER THAT MANAGEMENT ASSIGNED AND GAVE TO US AS PART OF THE AUDIT PROCESS.

SO THAT CONCLUDES OUR, OUR REMARKS.

IF THERE ARE ANY QUESTIONS OR COMMENTS, WE'RE HAPPY TO, UH, ANSWER THIS.

MARI, DID YOU WANNA ADD ANYTHING? NO.

WE WILL NOW MOVE TO ITEM NUMBER THREE, AND I WILL, UM, CALL MS. STOKES UP TO INTRODUCE THIS ITEM, OR IS MR. UM, THIS IS AN ITEM.

UM, APPRECIATE THAT.

UM, CLEAN CAFFER AND, AND UNDERSTAND THAT THE ONE SIGNIFICANT DEFICIENCY, AS I UNDERSTAND IT, HAD TO DO WITH ADOPTING COUNT ACCOUNTING STANDARDS.

UM, GIVEN HOW MANY LEASES WE HAVE, ANOTHER GOOD REASON TO GET OUT OF OUR LEASES, UM, YOU KNOW, IS WAS THAT, AND, AND MAKING THAT MA MAKING THAT CHANGE.

THERE WERE, THERE WERE A FEW, UM, ISSUES THERE THAT WERE CORRECTED.

UM, I DO WANNA POINT OUT ON THE SINGLE AUDIT, UM, YOU KNOW, YOU, IT LOOKED LIKE YOU REVIEWED ABOUT 90 MILLION OF THE 200 MILLION AND OF THE FEDERAL, THERE WERE NO DISCREPANCY AT ALL.

AND I KNOW THAT THERE ARE OTHER CITIES AND OTHER PLACES THAT ARE HAVING CHALLENGES, UH, WITH RESPECT TO ACCOUNTING AND, AND OTHER ISSUES AND SPENDING DOWN, UM, THE FEDERAL MONEY.

AND I THINK THAT AUSTIN CAN BE PROUD OF BOTH THE ACCOUNTING ASPECT OF THIS, BUT ALSO THAT WE HAVE REALLY MANAGED TO GET A LOT OF THAT MONEY OUT THE DOOR, UM, AND SPEND IT TO HELP OUR COMMUNITY MOVE FORWARD.

COLLEAGUES, DO YOU HAVE ANY QUESTIONS ON THE CAF R OR THE SINGLE AUDIT? GREAT, WELL, THANK YOU, UM, VERY MUCH.

THANK YOU FOR BEING HERE WITH US AND THANK YOU TO OUR STAFF.

I KNOW THAT PUTTING TOGETHER THE MATERIALS AND DOING THE SUPPORT, UM, TAKES A LOT OF TIME AS WELL AS GETTING IT RIGHT IN THE FIRST PLACE SO THAT THAT PROCESS CAN BE SMOOTH.

SO THANK YOU, UH, FOR YOUR WORK ON THAT.

[3. Fire Department Overtime Audit.]

UM, SO WE LIKE TO LOOK BACK AT OUR PRIOR AUDITS AND, AND SEE WHERE WE'RE AT.

UM, AND THIS IS A CASE WHERE WE HAD DONE, UH, AUDIT IN 2017 OF FIRE OVERTIME, I THINK AT MY REQUEST.

UM, WE WERE HAVING CHALLENGES IN 2017 WITH RESPECT TO OVERTIME.

AND TODAY'S, UM, UPDATE IS REALLY A LOOK BACK AT THAT REPORT AND WHERE, WHERE WE STAND, UM, WITH TRYING TO ADDRESS THOSE ISSUES.

BUT KEITH SOAS WAS THE MANAGER ON THIS, AND HE WILL BE PRESENTING THIS WORK TODAY.

THANK YOU COREY STOKES CITY AUDITOR.

AND, UM, THIS WORK WAS CONDUCTED BY A CONTRACTED AUDITOR,

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ALL RIGHT.

SMALLER NUMBER, UM, UH, FIREFIGHTERS PER UNIT.

MY NAME IS KEITH SALAS AND I'M AN ASSISTANT CITY AUDITOR OF THE OFFICE OF THE CITY AUDITOR.

LIKE COREY SAID, UM, THIS WORK WAS CONDUCTED BY AN EXTERNAL CONTRACTOR, HOWEVER, AS THE MANAGER WHOEVERS SAW THIS PROJECT.

ALL RIGHT, SO A LITTLE BACKGROUND INFORMATION ON THE AUSTIN FIRE DEPARTMENT.

THEY HAVE AN ANNUAL BUDGET OF ABOUT 230 MILLION, OF WHICH ABOUT TWO THIRDS IS SPENT ON FIRE AND EMERGENCY RESPONSES.

AS YOU CAN SEE IN THE GRAPH, THEIR OVERTIME EXPENSES HAVE RANGED OVER THE PAST SEVERAL YEARS FROM A LITTLE OVER 10 MILLION TO OVER 20 MILLION.

AND SINCE FISCAL YEAR 19, THESE EXPENSES HAVE BEEN RISING THAT LED US TO CONDUCT THIS AUDIT.

AND OUR OBJECTIVE WAS TO DETERMINE HOW DOES THE FIRE DEPARTMENT TRACK THEIR OVERTIME? HOW DOES IT ASSIGN THEIR OVERTIME? AND ARE THESE DECISIONS COST EFFECTIVE? SO TO ANSWER THE FIRST QUESTION, WE FOUND QUITE SIMPLY THAT THE FIRE DEPARTMENT HAS A COMPUTER PROGRAM THAT ALLOWS 'EM TO SEE THEIR BUDGET IN REAL TIME.

THEY CAN SEE THE DOLLARS AND CENTS SPENT, THEY CAN SEE IT AS A PERCENT OF THEIR BUDGET.

AND WE LEARNED THAT THEIR MANAGEMENT TEAM MEETS QUARTERLY TO DISCUSS THESE NUMBERS AND MAKE ANY ADJUSTMENTS THEY DEEM NECESSARY TO ASSIGN THEIR OVERTIME.

THEY FOLLOW POLICIES PUT FORTH IN THEIR COLLECTIVE BARGAINING AGREEMENT, AS WELL AS IN THEIR POLICIES AND PROCEDURES.

AND I WANT TO NOTE THAT THERE ARE POLICIES AND PROCEDURES SPECIFICALLY SAY THE INTENT OF THEIR POLICY TO ASSIGN OVERTIME IN THE MOST COST EFFECTIVE MANNER POSSIBLE.

TO THAT END, WHEN YOU LOOK AT THE ITEMS THEY CONSIDER WHEN ASSIGNING OVERTIME, THE SECOND ONE IS THE FIREFIGHTER'S RATE OF PAY, AND THEY ALWAYS TRY TO ASSIGN IT TO THE LOWEST PAID FIREFIGHTERS FIRST.

SO IN ANSWERING THE QUESTION, ARE THE FIRE DEPARTMENT'S OVERTIME DECISIONS COST EFFECTIVE? WE FOUND THAT GENERALLY YES, THEY ARE SO FIREFIGHTERS WITH THE LOWEST HOURLY RATE OF PAY ARE GENERALLY PRIORITIZED, ALTHOUGH THERE MAY BE SOME EXCEPTIONS.

SO THOSE EXCEPTIONS INCLUDE WHEN WE HAVE NEEDED EXPERTISE.

SO IF THERE'S A FIREFIGHTER WHO'S HIGHER PAID BUT HAS CERTAIN CERTIFICATIONS OR SKILL SETS, THEY'LL HIRE THOSE PEOPLE ON FOR OVERTIME BEFORE A LOWER PAID PERSON IF THEY NEED TO HAVE THOSE SKILLS ON DUTY.

UM, ALSO FOR SAFETY REASONS, YOU WANNA MAKE SURE THAT FIREFIGHTERS HAVE AMPLE REST BETWEEN SHIFTS SO THAT THEY'RE ABLE TO BE ALERT AND THEY'RE NOT FATIGUED OR EXHAUSTED WHILE ON DUTY.

AND THEY ALSO PRIORITIZE FIREFIGHTERS UNDER KELLY DAY.

WITHOUT GETTING INTO TOO MANY, UH, DETAILS, I KNOW IT GETS REALLY COMPLICATED, BUT KELLY DAYS ARE PAID DAYS OFF THAT ARE BUILT INTO A FIREFIGHTER'S SCHEDULE.

WITH THAT SAID, WE DON'T THINK THAT THIS IS A MAJOR DRIVER OF THEIR OVERTIME EXPENSES BECAUSE EACH FIREFIGHTER ONLY EARNS A VERY SMALL NUMBER OF, UH, KELLY DAYS PER YEAR.

I DO, HOWEVER, WANT TO USE KELLY DAYS TO EXEMPLIFY ONE OTHER AREA WHERE WE FOUND THAT THE FIRE DEPARTMENT COULD BE SAVING MONEY ON OVERTIME EXPENSES.

SO ACCORDING TO THE, UM, COLLECTIVE BARGAINING AGREEMENT, ALL PAID TIME OFF, WITH THE EXCEPTION OF SICK LEAVE AND VACATION LEAVE COUNTS TOWARDS A NUMBER OF HOURS OF FIREFIGHTER NEEDS TO WORK BEFORE THEY GET TO EARN OVERTIME.

SO KELLY DAYS, LIKE I SAID, ARE PAID DAYS OFF, SO THEY'RE NOT ACTUALLY ON DUTY.

HOWEVER, THOSE DA THOSE HOURS COUNT TOWARDS THE 144 THEY NEED BEFORE THEY CAN START EARNING OVERTIME FOR THEIR PAY PERIOD.

ACCORDING TO FEDERAL GUIDELINES, HOWEVER, BECAUSE THEY WEREN'T ACTUALLY ON DUTY FOR THOSE KELLY DAYS, UM, WE COULD PAY ALL OF THIS AT THE REGULAR RATE OF PAY, WOULD NOT NEED TO PAY THAT EXTRA SHIFT AT THE OVERTIME RATES.

BUT AGAIN, THIS IS A RELATIVELY SMALL DRIVER OF OUR OVERTIME EXPENSES, IS OUR UNDERSTANDING.

SO KNOWING THAT THEIR OVERTIME DECISIONS ARE GENERALLY COST EFFECTIVE, AND YET OUR COSTS HAVE BEEN INCREASING OVER THE PAST SEVERAL YEARS.

OUR EXTERNAL CONTRACTOR HAD A FEW ADDITIONAL OBSERVATIONS ABOUT WAYS THAT WE COULD LOWER OUR OVERTIME COSTS.

UM, I DO WANNA STRESS THAT THESE ARE OBSERVATIONS AND THESE ARE NOT AUDIT RECOMMENDATIONS.

SO THE WAY THAT HE THOUGHT ABOUT THIS WAS KIND OF TWO SIDES OF AN EQUATION.

YOU HAVE THE NUMBER OF POSITIONS THAT YOU NEED TO FILL AT ANY GIVEN TIME, AND YOU HAVE THE NUMBER OF FIREFIGHTERS THAT ARE SCHEDULED TO FILL THOSE POSITIONS AT ANY GIVEN TIME.

WHEN THOSE ARE ALIGNED, THEN YOU DON'T NEED OVERTIME.

IF YOU HAVE MORE POSITIONS THAT YOU NEED TO FILL, THEN YOU HAVE PEOPLE SCHEDULED, THEN YOU HAVE TO START USING OVERTIME TO MEET THOSE POSITIONS.

UM, SO WE CAN EITHER REDUCE THE NUMBER OF FIREFIGHTERS NEEDED OR INCREASE THE NUMBER OF FIREFIGHTERS AVAILABLE.

UM, A COUPLE OBSERVATIONS OF WAYS WE COULD REDUCE THE NUMBER OF FIREFIGHTERS THAT WE NEED AT ANY GIVEN TIME ARE TO START WITH REVISITING THE FOUR PERSON STAFFING MODEL THAT WE HAVE RIGHT NOW BY ORDINANCE.

ALL FIREFIGHTING UNITS NEED TO BE STAFFED WITH FOUR FIREFIGHTERS.

THAT'S BASED ON RESEARCH THAT SHOWS THAT FIRE, UH, FOUR PERSON UNITS RESPOND TO STRUCTURE FIRES MORE SAFELY AND MORE EFFECTIVELY THAN TWO AND THREE PERSON UNITS.

HOWEVER, WHEN WE LOOKED AT THE NUMBERS, WE FOUND THAT ONLY ABOUT 1% OF AD'S CALLS IN RECENT YEARS WERE ACTUALLY FOUR STRUCTURED FIRES.

AND THE EXTREME MAJORITY OF THOSE SITUATIONS, WELL OVER 99% OF THEM, AT LEAST TWO UNITS RESPONDED TO THOSE STRUCTURED FIRES.

SO WE MAY BE ABLE TO, UM, ACHIEVE THE SAME GOALS WHILE HAVING A

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THE OTHER AREA THAT WE MAY BE ABLE TO, UH, LOWER THE NUMBER OF FIREFIGHTERS NEEDED IS BY, UM, RECONSIDERING HOW MANY UNITS WE HAVE AT EACH STATION OR THE NUMBER OF STATIONS THAT WE HAVE IN GENERAL.

AGAIN, THIS IS NOT AN AUDIT RECOMMENDATION, JUST THE BEGINNING OF THE CONVERSATION.

AND ON THE OTHER SIDE OF THE EQUATION, WE ARE, UH, LOOKING AT THE NUMBER OF FIREFIGHTERS THAT ARE AVAILABLE TO BE SCHEDULED AT ANY GIVEN TIME.

SO WE NOTE THAT THE FIRE DEPARTMENT HAS NOT BEEN FULLY STAFFED OVER THE PAST SEVERAL YEARS.

LAST YEAR, THE FIRE DEPARTMENT PUT OUT A MEMO THAT DETAILED THEIR PLAN FOR ACHIEVING FULL STAFFING BY THE END OF FISCAL YEAR 24.

HOWEVER, WHEN WE LOOKED AT THAT, WE FEEL LIKE THEIR ASSUMPTIONS MAY BE A LITTLE OPTIMISTIC.

FOR INSTANCE, NOT EVERY CADET GRADUATES FROM ACADEMY AND THE HISTORICAL ATTRITION RATE MAY BE ACTUALLY A LITTLE LOWER THAN OUR CURRENT ATTRITION RATE.

SO IT MAY TAKE LONGER THAN THE END OF FISCAL YEAR 24 BEFORE THEY ARE FULLY STAFFED.

THE OTHER AREA THAT WE LOOKED AT WAS LEAVE USAGE BECAUSE OF COURSE WHEN A FIREFIGHTER USES LEAVE, THEN THEY'RE NOT AVAILABLE TO WORK THEIR SHIFT.

NOW FIREFIGHTERS, JUST LIKE EVERY OTHER CITY EMPLOYEE, EARN VACATION LEAVE AND SICK LEAVE IS A BENEFIT TO THEIR EMPLOYMENT, AND WE'RE NOT SUGGESTING THAT THEY NOT USE IT.

WHAT WE DID LOOK AT, HOWEVER, WAS THE SICK LEAVE IN PARTICULAR, WHICH ACCOUNTS FOR OVER A QUARTER OF ALL THE LEAVE THAT THEY USE.

AND WE FOUND THAT JUST LIKE WE DID IN 2017, THERE'S MORE SICK LEAVE BEING USED ON THE WEEKENDS, SATURDAYS AND SUNDAYS THAN THERE ARE IN THE MIDDLE OF THE WEEK, WHICH MAY SUGGEST THAT FIREFIGHTERS ARE USING SICK LEAVE INSTEAD OF VACATION LEAVE.

THE REASON THAT THIS IS IMPORTANT IS THAT WHEN FIREFIGHTERS USE VACATION LEAVE, THAT'S OFTEN SCHEDULED AND GRANTED SEVERAL WEEKS OR MONTHS IN ADVANCE, AND ALLOWS THE FIRE DEPARTMENT TO PLAN ACCORDINGLY AND MAKE SURE THAT THEY HAVE SOMEBODY TO FILL THAT POSITION.

WHEN A FIREFIGHTER USES SICK LEAVE, THAT OFTEN HAPPENS AT THE LAST MINUTE AND REQUIRES THE USE OF OVERTIME.

ALL RIGHT, SO WITH THAT, I'M HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE.

UM, DOES THE FIRE DEPARTMENT WANT TO RESPOND AT THIS POINT OR JUST ANSWER QUESTIONS? GOOD MORNING, CHIEF.

MY NAME IS JOEL BAKER, FIRE CHIEF CITY OF AUSTIN FIRE DEPARTMENT.

UH, WE APPRECIATE, I APPRECIATE THE CITY OF AUSTIN FIRE DEPARTMENT APPRECIATE THE AUDIT REPORT THAT'S RAISED TO OVERTIME.

SOME OF THE FINDINGS WE BELIEVE ARE ACCURATE, HOWEVER, THAT'S ONE.

JUST WANNA CAUTION, UH, WELL MAKE A POINT OF CAUTION AS RELATES TO REDUCING THE NUMBER OF FIREFIGHTERS ON APPARATUS AS WELL, AND OR SENDING LESS EQUIPMENT OR, OR THE CLAIM THAT IF WE SEND MULTIPLE UNITS WITH TWO OR POSSIBLE THREE FIREFIGHTER, IT WILL SOLVE OR BE THE SAME AS SENDING FOUR AND FOUR ON APPARATUS.

ACCORDING TO THE NATIONAL FIRE PROTECTION ASSOCIATES, UH, N N F P A 1710, I BELIEVE IT IS, IT HAS CONDUCTED SEVERAL STUDIES AS RELATE TO THE IMPORTANCE OF HAVING FOUR AND FOUR, FOUR PERSON ON THE ENGINE, FOUR PERSON ON THE TRUCK.

I SUPPORT THIS AS A I T TO CONTINUE WITH STAFFING EACH UNIT WITH FOUR AND FOUR.

AND I SAY THAT UNLESS YOU HAVE BEEN ON A FIRE CALL THREE O'CLOCK IN THE MORNING OR THREE O'CLOCK IN THE AFTERNOON WORKING ON FIRE, IT'S HARD TO UNDERSTAND THE SIGNIFICANCE AND IMPORTANCE OF THE REDUCED FIRE LOAD FIREWORK FROM A FIREFIGHTER.

UNLESS YOU HAVE DONE CPR IN SOMEONE HOUSE FOR 10 TO 15 MINUTES, IT'S HARD TO UNDERSTAND THE SIGNIFICANCE OF HAVING THAT EXTRA PERSON NOT ONLY TO PROVIDE THAT MEDICAL CARE, BUT TO LOOK UP YOUR SHOULDERS AS A SAFEGUARD FOR OTHER HAZARDS, ENDANGERED THAT THEY MAY PRODUCE ITSELF ON THE SCENE.

UM, BUT I STAND HERE TO ANSWER, TRY TO ANSWER ANY QUESTION THAT YOU ALL MAY HAVE AS IT RELATES TO THE AUDIT REPORT OR ANYTHING RELATING TO STAFFING OR CONCERNS.

THANK YOU CHIEF, UM, COLLEAGUES, COUNCIL MEMBER ALTER, AND, UM, WANNA ACKNOWLEDGE THAT MAYOR PRO TAMA JOIN US.

COUNCIL OR RYAN AL ALTER.

THANK YOU CHIEF.

UM, REDUCING STAFFING COULD, COULD BE A VIABLE SOLUTION IS TO GO WITH RESCUE UNITS.

GOOD MORNING SIR.

HOW ARE YOU? I'M DOING WONDERFUL.

I WANTED TO ASK YOU A LITTLE BIT RIGHT WHERE YOU LEFT OFF AND YOU TOUCHED ON IT IN YOUR RESPONSE TO, UH, THE AUDIT ABOUT EXPLORING OPPORTUNITIES WHERE MAYBE TWO PERSON CREWS IN A, YOU KNOW, TRUCK OF SOME SORT MIGHT BE, UH, A BETTER USE OR, OR AN ADEQUATE RESPONSE.

SO CAN YOU HELP OR JUST GIVE SOME MORE CONTEXT TO THAT ABS? ABSOLUTELY.

THE ONLY WAY THAT,

[00:25:01]

THAT'S WHERE WE HAVE TWO PERSON ON A RESCUE APPARATUS, SUCH AS A PICKUP TRUCK OR SUV TO RESPOND ON MEDICAL CALLS OR NON FIRE RELATED RELATED COSTS.

UH, THEY COULD RESPOND TO A PERSON STUCK IN THE ELEVATOR POSSIBLY, UH, BUT THAT CAN REDUCE THE STAFFING.

BUT ON THAT APPARATUS, IT MAY NOT NECESSARILY REDUCE STAFFING IN THE FIRE DEPARTMENT CUZ WE DON'T HAVE TWO EXTRA BODIES TO PUT ON THE RESCUE UNITS TODAY.

RIGHT? WE NEED THE STAFFING TO SUPPORT EVEN THAT CONCEPT.

BUT AGAIN, THE ONLY WAY WE CAN REDUCE STAFF TO OWNER APPARATUS, WELL IT WON'T BE REDUCING STAFF ON THE APPARATUS, BUT WE'RE STILL GONNA HAVE FOUR ON THE, UH, EACH APPARATUS.

BUT TO PUT TWO FIREFIGHTERS OR FIREFIGHTER, I MEAN EITHER A LIEUTENANT OR FIRE, SPECIAL OR FIREFIGHTER ON A RESCUE UNIT TO SUPPORT THAT.

AND, AND WHAT I'M TRYING TO THINK IF, IF THIS IS WHERE YOU'RE GOING AND IF IT'S NOT, FEEL FREE TO CORRECT ME, BUT, YOU KNOW, FOR INSTANCE, WE HAVE OUR STANDARD UNIT WHO LET'S SAY THE INDIVIDUAL, THERE'S SOMEONE WHO NEEDS CPR AT THEIR HOME OR IT'S A CAR CRASH OR I DON'T KNOW, PICK, PICK YOUR EMERGENCY AND THE FOUR PERSON CREW GETS IN, THE FIRETRUCK GOES TO THAT RESPONSE.

IF WE WERE, INSTEAD IF, IF THAT, UM, STATION HAD ONE OF THESE RESPONSE TRUCKS THAT, YOU KNOW, TWO OF THEM HOPPED IN, TWO OF 'EM STAYED THERE AND AND, AND WENT TO THAT RESPONSE.

I'M JUST TRYING TO THINK, WOULD THERE, WOULD WE BE ACHIEVING AN EFFICIENCY THERE GIVEN THAT YOU STILL HAVE, LET'S SAY MAYBE TWO PEOPLE LEFT AT THE STATION, THEY MIGHT NEED ANOTHER TRUCK TO DO A DIFFERENT CALL.

ARE THERE, ARE THERE STATIONS WHERE THAT MIGHT BE MORE, WHERE THEY HAVE MORE LOW LEVEL, UM, YOU KNOW, LOW PRIORITY RESPONSES WHERE THAT THAT MIGHT BEHOOVE US TO, TO USE THAT MODEL? OR, OR IS THAT A, HELP ME THINK ABOUT THAT.

I'M, I'M STRUGGLING WITH THAT.

I'M JUST WAITING FOR YOU TO FINISH.

I GOTTA ANSWER, SORRY, .

YEAH.

UH, THAT MODEL WILL WORK WELL AND MAKE, LEAVE LAND, BUT DOES NOT WORK WELL IN REALITY.

TIME OF THE DAY THOSE FIRE CALLS GONNA COME IN.

WHAT DO I MEAN BY THAT? LET'S SAY FOR EXAMPLE, STATION ONE RIGHT AROUND THE CORNER HERE, WE TAKE TO HAVE FOUR PERSON ON THE ENGINE.

AND TODAY THE FAUCI SAID, WELL, WE'RE GONNA PUT TWO ON THE RESCUE UNIT TO RESPOND THOSE NON-LIFE THREATENING CALLS WE'LL KEEP TO THE ENGINE.

AND SO THAT RESCUE UNIT, RESCUE WARRANT RESPONDED TO I 35 ON THE CAR WRECK CALL, WHICH IS CRAZY TO DO.

CAUSE NOW WE PUTTING THOSE TWO FIREFIGHTERS EVEN IN MORE HARM'S WAY.

CAUSE THEY HAVE NO ONE TO, THEY DON'T, THEY DON'T HAVE THAT LARGE APPARATUS TO PROTECT THEM FOR ONCOMING CAUSE AND TRAFFIC.

BUT TAKE THAT SCENARIO OUT, WE SEND THAT FIRE, THAT RESCUE UNIT TO 6 0 3 DAVIS STREET AT THE SHORES CONTINENTAL HOTEL TO DO A CPR CALL AND WE LEAVE THAT FIRE APPRISING IN THE STATION, THE RESCUE UNIT DESIGNED SO THE FIRE APPARATUS WILL BE READILY AVAILABLE FOR THOSE FIRE CALLS OR THE HAZARD CALLS TO RESPONSE TO.

BUT YET WE TAKEN THOSE TWO RESCUE PER PERSONNEL TO 6 0 3 DAVIS STREET ON THAT CARDIAC ARREST CALL.

AND FOR TWO PEOPLE, TWO EMS PERSONNEL, FIRE OR EMS TO TRY TO CONDUCT CPR R UH, IT'S, IT'S, IT IS, IT'S NOT A GOOD IDEA.

I HAVE DONE C PRIORITY AND I WISH I HAD MORE THAN TWO PEOPLE ON THE SCENE WE HAVE.

BECAUSE UNLESS YOU ARE PUMPING ON THAT CHEST AND YOU'RE 19 YEARS OLD, YOU ARE IN TOP PHYSICAL SHAPE, YOU GONNA GET VERY FATIGUED IN DOING SO.

UH, BUT NOW ONLY THAT THE MEDICATION YOU GOTTA GIVE AND ANOTHER THING THAT'S GOING ON WITH DOING CPR, IT'S HARD TO EXPLAIN UNLESS YOU'VE BEEN THERE AND SEEN IT.

BUT WHILE YOU ARE ON THE SCENE AT 6 0 3 DAVIS STREET CONDUCTING YOUR MEDICAL CALL, ALL OF A SUDDEN SINCE WE DON'T HAVE A CRYSTAL BALL TO PREDICT WHEN THE NEXT FIRE CALL WILL COME IN A FIRE ALARM BELL RING AT ONE 20 THROUGH CSAR CHERRYVILLE, I'M MAKING THESE ADDRESSES UP ON A FIRE CALL.

NOW WE'RE SENDING A TWO PERSONNEL ON A HIGH RISE BUILDING TO TRY TO MITIGATE A FIRE CALL TWO PERSONNEL ON THE ENGINE, SOMEONE GOTTA DRIVE, SOMEONE GOTTA GET THE HIGH RISE PACK AND GO UPSTAIRS.

WE'RE NOT GONNA SEND ONE PERSON UP UNLESS YOU RECOMMEND WE JUST WAIT ON THE SCENE TO ADDITIONAL EQUIPMENT.

OF COURSE, YOU'RE NOT RECOMMENDING THAT TO TAKE PLACE, BUT WE NEED THE PERSONNEL TO OVERWHELM THE SITUATION.

NOW WE SAY ONLY 1% IN THE AUDIT, ABOUT 1% OF THE COFFEE GO ON FIRE CALLS.

UNFORTUNATELY, I DON'T PREDICT WHAT DAY THAT 1% WOULD EXIST.

I DON'T KNOW THOUGH.

FIRE'S GONNA COME IN MONDAY, TUESDAY, WEDNESDAY, THURSDAY, FRIDAY OR SATURDAY.

I DON'T KNOW WHAT

[00:30:01]

I JUST KNOW THAT IF I'M IN A BUILDING, I WANT ADEQUATE FIRE PROTECTION TO COME IN TO SAVE ME OR TO PULL MY CHILD OUT THAT HOUSE TWO O'CLOCK IN THE MORNING, THE BACK, BACK, BACK, BACK BEDROOM IN THE CORNER.

WHEN WE ARE IN THAT SLEEP, THE FIRE DEPARTMENT, WE ARE BETTER THAN STATE FARMS IN ALLSTATE, .

YOU KNOW, AND WHAT I MEAN BY THAT IS IT'S AN INSURANCE POLICY.

YOU'RE NOT PAYING US FOR WHAT WE DO.

YOU ARE PAYING US FOR WHAT WE ARE PREPARED TO DO.

AND THE MEN AND WOMEN, AUSTIN AND FIRE DEPARTMENT ARE TRAINED WELL AND COME TO WORK EVERY DAY AND PUT THEMSELF IN HARM'S WAY TO MAKE SURE WE'RE ABLE TO MEET THE MISSION OF THIS GREAT CITY OF AUSTIN.

ALL RIGHT.

WELL I APPRECIATE YOUR, YOUR PASSION AND THE INFORMATION AND UH, LOOK FORWARD TO WORKING WITH YOU ON THIS.

THANK YOU, SIR.

UH, COUNCIL MEMBER FRANCIS.

CHIEF, CAN YOU SPEAK TO THE, THE FINDING ON THE OVERTIME, UM, LEAVE OR I GUESS THE FINDING THAT IT SEEMS LIKE THERE'S A HIGHER RATE OF FIREFIGHTERS USING SICK TIME DURING THE WEEKEND.

UM, CAN YOU SPEAK TO THAT OBSERVATION AND ANY OTHER CONTEXT THAT WE SHOULD CONSIDER? I CAN TRY.

IT MAY NOT BE ADEQUATE.

I'M GONNA PAUSE AFTER I GET TO THE GIFT CHIEF SMITH, THE CHIEF COMMANDER OPPORTUNITY TO SAY SOMETHING.

UH, FIREFIGHTERS USING SICK LEAVE ON THE WEEKENDS.

I DON'T KNOW.

THEY U I DON'T KNOW CAUSE I'M NOT A MEDICAL DOCTOR DOESN'T CONFESS TO BE ONE.

WHETHER OR NOT THEY ARE SICK OR THEY CHILD IS SICK OR THEY SPOUSE IS SICK ON A WEEKEND.

I, I I, I DON'T KNOW.

UH, BUT I DO KNOW I DO BELIEVE NOT JUST IN AUSTIN FIRE DEPARTMENT, BUT ALL ACROSS THE COUNTRY IN THE FIRE SERVICE, UH, FIREFIGHTER TAKE SICK LEAVE ON THE WEEKEND AS WELL.

UH, BUT BECAUSE WE, THE STUDIES SHOW THE REPORT SHOW A HIGH LEVEL OF FIREFIGHTER TAKING SICK LEAVE ON THE WEEKEND HAS INCREASED OUR OVERTIME RATE.

UH, I BELIEVE THAT'S TRUE, BUT AGAIN, I CANNOT STAND HERE AND TELL YOU WHY THEY ARE DOING SO.

I JUST DO NOT HAVE THAT.

WELL, I GUESS MY QUESTION IS, HAVE YOU CONSIDERED PERHAPS A DIFFERENT SCHEDULING PRACTICE, RIGHT? KNOWING THAT THERE IS A HIGHER RATE OF SICK LEAVE REQUESTS COMING IN ON THE WEEKEND.

SHOULD WE BE STAFFING AT A HIGHER LEVEL ON THE WEEKEND TO BUILD IN FOR THE FACT THAT THERE MIGHT BE MORE THAN AVERAGE REQUESTS COMING IN ON THE WEEKEND SO THAT WE'RE NOT TAPPING INTO THAT OVERTIME? WELL, I, I CAN'T STEPH HIGHER CUZ I DON'T HAVE THE BODIES TO STEP HIGHER ON THE WEEKEND.

UH, UH, SO I NEED THE BODIES TO, IF I STEP HIGHER, IT IS GONNA INCREASE THE OVERTIME.

SO I'M GONNA PAUSE AND LET CHIEF SMITH TRY TO ADD SOME VALUE TO THAT QUESTION AND I'LL JUMP BACK IN.

DIVISION CHIEF THERE, SMITH, I'M THE SENIOR SHIFT COMMANDER RESPONSIBLE FOR STAFFING ON MY SHIFT EACH DAY.

I HAVE TWO COUNTERPARTS THAT DO THE SAME.

UH, ONE OF THE ITEMS THAT THE CHIEF IS ALLUDING TO OF NOT HAVING ENOUGH, UH, PERSONNEL TO, TO COVER SOME OF THAT LEAVE IS FOUNDED BACK WHEN WE WENT TO FOUR AND FOUR STAFFING IN 2010, WE DIDN'T INCREASE OUR OVERALL NUMBERS OF AVAILABLE PERSONNEL TO HELP COVER SOME OF THAT OVERTIME.

SO WE'RE AT A DEFICIENCY ALREADY AND JUST THE SHEER NUMBER OF FIREFIGHTERS AVAILABLE TO COVER SOME OF THAT OVERTIME.

CAN YOU REMIND ME OF THE VACANCY RATE RIGHT NOW THAT WE HAVE WITH AFD? 78? YEAH, AROUND 78.

THEY'RE, THEY'RE CURRENTLY IN THE, THEY'RE CURRENTLY IN THE CADET CLASSES.

UH, BUT THAT JUST BRINGS US BACK TO THE AUTHORIZED STRENGTH WE HAVE RIGHT NOW.

MM-HMM.

, UH, WHAT WE'RE DISCUSSING IS THE FACT THAT IF YOU LOOK AT AN HOURS BASED MODEL, UH, FORMULA FOR HOW MANY PEOPLE YOU SHOULD HAVE EACH DAY, WE'RE DEFICIENT ABOUT 98 ABOVE OUR CURRENT AUTHORIZED STRENGTH TO HELP LEVEL SOME OF THAT OUT.

NOW, THAT DOESN'T ANSWER YOUR QUESTION REALLY ABOUT, YOU KNOW, A DIFFERENT MODEL ON, ON THE WEEKENDS AND, AND WHY WE HAVE SICK LEAVE.

UH, CURRENTLY OUR POLICIES ALLOW FOR TWO SHIFTS OF SICK LEAVE, UH, WITHOUT QUESTION.

SO WHEN WE LOOK AT OUR POLICIES, WE, THERE'S REALLY, YOU KNOW, WITHOUT CHANGING OUR POLICIES, WITHOUT CHANGING HOW WE DO BUSINESS, YOU KNOW, WE, WE REALLY PER SE DON'T LOOK AT WHY THAT RATE IS HIGHER ON THE WEEKENDS.

I MEAN, WE CAN ALL SPECULATE AS TO WHY IT'S, WHY IT'S HIGHER ON THE WEEKEND.

UM, RIGHT.

AND I, AND I WANNA BE CLEAR, I'M NOT QUESTIONING, YOU KNOW, AN INDIVIDUAL'S RIGHT TO USE SICK LEAVE.

RIGHT.

I'M JUST ASKING LIKE WHAT CONSIDERATIONS HAS THE DEPARTMENT GIVEN UNDERSTANDING THAT THERE IS A HIGHER LEVEL OF SICK LEAVE REQUESTS COMING IN ON THE WEEKEND? LIKE WHAT OTHER SCHEDULING PRACTICES HAVE BEEN CONSIDERED? AND I, AND I'D SAY WE, WE HAVE NOT SIMPLY BECAUSE THE STAFFING MODEL IS THE SAME, WHETHER IT'S MONDAY OR TUESDAY OR SATURDAY.

I MEAN, THE FOUR AND FOUR REQUIRED STAFFING DOESN'T CHANGE FROM,

[00:35:01]

FROM MONDAY TO SATURDAY.

SO THERE'S REALLY, IN OUR CURRENT MODEL, YOU COULD NOT DO THAT.

SO IT, IT REALLY GOES BACK TO LOOKING AT WHAT THE DRIVERS ARE FOR THE, FOR THE USE.

BUT IT'S MORE OF, THE DEPARTMENT HASN'T JUST REALLY HASN'T TAKEN A LOOK AT THE MODEL TO TAKE THAT INTO ACCOUNT AT THIS POINT.

CORRECT, BECAUSE THE, THE FOUR AND THE, THE, UH, THE DAILY, UM, FOUR AND FOUR REQUIREMENT IS, IS THE SAME.

SO.

WE HAVE APPROXIMATELY 1400, 1350 FIREFIGHTERS.

THANK YOU CHIEF SMITH.

CHIEF SMITH MENTIONED, WE HAVE APPROXIMATELY SEVEN TO EIGHT VACANCY, WHICH IS TRUE HOW WE HAVE ABOUT 80, UH, 75 TO 80 RECRUITS CURRENTLY IN TRAINING.

AND SO ONCE STORE RECRUITS GET OUTTA TRAINING, THE SEVEN, EIGHT VICTIMS GO AWAY, BUT NOT READY BECAUSE WE CONSTANTLY HAVE PEOPLE RETIRING.

AND SO WE HAVE ABOUT AN AVERAGE OF ONE TO TWO, TWO PEOPLE RETIRE, UM, PER MONTH.

SO THE VACANCY, WHAT IS THAT PERCENTAGE RATE? 78 VACANCIES? WHAT IS THAT EQUIVALENT TO? I DON'T KNOW WHAT THE PERCENTAGE RATE.

SO ON OUT OF 1,350 PERSONNEL, AN NON-INCLUSIVE CIVILIAN, UH, SEVEN, EIGHT OR SWORN FIREFIGHTER VACANCY.

SO, UH, OKAY.

I DON'T KNOW IF THAT'S 2%, 3%.

I DON'T, I DON'T KNOW THAT THAT RATE.

UM, WE'RE, WE'RE DEALING WITH HIGHER LEVELS OF VACANCIES ACROSS THE CITY, BUT THERE IS A BASIC VACANCY RATE THAT IS NORMAL.

SO IT'S NOT, IT'S NOT TRUE THAT WE WOULD ALWAYS EXPECT TO HAVE EVEN STEVEN WITH OUR AUTHORIZED FORCE OR WITH OUR, WITH OUR, OUR JOBS IN ANY, IN ANY DEPARTMENT.

UM, COMPLETELY.

UM, CHIEF, I HAVE SEVERAL QUESTIONS FOR YOU AND I ASK AT TX N IF YOU COULD PULL UP THE CHART THAT HAS THE OVERTIME OVER TIME, LOOKING BACK, I THINK FROM 2015 TO, TO NOW THE BAR GRAPH THAT ONE.

SO CHIEF, UM, I KNOW YOU WERE NOT HERE AND, UM, FOR FISCAL YEAR 17 WHEN WE HAD THE 21 MILLION, I, HOWEVER, WAS HERE IN THE SPRING OF THAT YEAR WHEN WE WERE ASKED TO DO A VERY LARGE BUDGET AMENDMENT TO ACCOMMODATE THE OVERTIME, THAT'S WHEN WE INITIATED THE ORIGINAL AUDIT HERE.

AND AS YOU CAN SEE FROM THESE NUMBERS, AFTER WE DID THAT AUDIT AND WE PUT, UM, SOME ATTENTION TO TRYING TO FIGURE OUT HOW TO ADDRESS OVERTIME, THE NUMBERS WENT DOWN, UM, CONSIDERABLY IN THE NEXT THREE FISCAL YEARS.

UM, WHAT IN YOUR MIND IS ACCOUNTING FOR THAT INCREASE IN 21 AND 22? UM, THOSE ARE VERY LARGE JUMPS FROM FISCAL YEAR 20 TO 21.

UM, CLEARLY A PIECE OF THAT IS GONNA BE COVID, BUT WHAT, WHAT IS, WHAT IN YOUR MIND IS ACCOUNTING FOR THESE OVERTIME EXPENSES AND HOW HAVE YOU LOOKED AT THESE EXPENSES TO TRY TO UNDERSTAND THEM AND REDUCE THEM? IT'S MY BELIEF THAT IN FISCAL YEAR, YEAR 20 AND 21 AND 22, THE OVERTIME HAS INCREASED.

UM, ONE DUE TO THE MEMBERS ON SICK LEAVE ON THE WEEKEND, THAT CAUSED SOME OVERTIME TO GO UP TWO.

AND THAT, NOT NECESSARILY THIS ORDER TWO IS BECAUSE COVID NOW IS, HAS SLOWED DOWN.

WE STILL HAVE COVID HERE, BUT HAS SLOWED DOWN.

MEMBERS ARE NOT ABLE TO TAKE THE LEAD.

THEY DID NOT TAKE, AND MEMBERS ARE ABLE TO TAKE THE VACATION TIME AND, AND UH, UH, AND SOME MEMBERS ARE TAKING SICK LEAVES.

BUT, BUT MAINLY I BELIEVE MEMBERS ARE TAKING THE VACATION TIME.

THEY DID, THEY DID NOT TAKE ON FISCAL OF 19 AND 20 AND THE CUFF MEMBERS TAKING THE VACATION TIME, WE HAD TO HIRING THOSE POSITIONS.

CAUSE LIKE CHIEF SMITH POINTED OUT, WE DO NOT HAVE ADEQUATE STAFFING, UH, AUTHORIZED STRENGTH STAFFING TO SUPPORT THE 4 0 4 STAFF WITHOUT DOING THE OVERTIME.

SO AGAIN, UH, NOW MEMBERS ARE ABLE TO GET OUT AND SPEND TIME WITH THEIR FAMILY.

THEY'RE TAKING A MUCH NEEDED VACATION TIME THAT IN THE, ALONG WITH, UH, I BELIEVE FISCAL YEAR 2021.

UH, SOME OF IT, AND I DON'T KNOW THE EXACT NUMBER IS DUE TO PARENTAL LEAVE.

AND WE HAVE THE, I THINK THE SIXTH WEEK PARENTAL LEAVE, UH, THAT WE'RE ABLE TO TAKE, UH, CAUSE COUNSEL BLESSED US WITH THAT, THAT HAS COST THE NUMBER TO INCREASE.

AND THEN WE HAVE PEOPLE WHO'S ON MILITARY LEAVE AND THEN WE'LL HAVE APPROXIMATELY, I WANT TO SAY, UH, 60 TO 70 MEMBERS WHO ARE ON INJURY LEAVE, UH, WHO HAVE NOT REPORTED BACK TO WORK.

SO THAT HAS INCREASED ALSO, I BELIEVE IN 20 FISCAL YEAR 21 AND 22, UH, FISCAL YEAR 19 AND 21, UH, THAT HAD COST AN INCREASE IN OVERTIME.

UM, IF YOU COULD, UM, SO CHIEF, I, I APPRECIATE ALL OF ALL OF THOSE PIECES, BUT IN 2017 WHEN WE DID THIS, THERE WERE STEPS THAT WERE TAKEN BY THE DEPARTMENT IN RESPONSE TO SEEING THE INCREASE THAT HELPED US TO CONTROL THE COSTS.

I WANNA PLEASE PUT THAT SLIDE BACK UP.

[00:40:01]

AND, AND SO WHAT ARE YOU DOING AS CHIEF TO THINK ABOUT, UM, HOW WE CONTROL THE OVERTIME? HOW DO WE BETTER MANAGE OUR STAFF? OBVIOUSLY OUR STAFF NEED TO BE ABLE TO HAVE THE TIME OFF, BUT WE HAVE HALF AS MANY VACANCIES AS WE HAD IN 2017.

I THINK WE WERE AT 1 50, 1 60 AT THAT POINT IN TIME.

UM, AND WE HAVE THE SAME OVERTIME LEVELS.

THE PATERNITY LEAVE, BY THE WAY, DIDN'T GO INTO EFFECT, UM, FOR FISCAL YEAR 22, I DON'T BELIEVE.

UM, OR AT LEAST NOT FOR MUCH THAT IT COULD HAVE A HUGE IMPACT.

SO WHAT ARE YOU AS CHIEF DOING TO HELP US GET THIS UNDER CONTROL? BECAUSE THERE IS A MODEL IN WHICH WE CAN BE AT 14 OR 11 MILLION INSTEAD OF 20 MILLION.

AND THAT DIFFERENCE IS THE COST OF THOSE EXTRA EMPLOYEES THAT YOU ARE ASKING US TO FUND.

UM, THE MONEY HAS TO COME FROM SOMEWHERE.

IS THERE A WAY FOR US TO SAVE ON OVERTIME SO THAT WE CAN FUND THESE OTHER THINGS THAT WILL HELP MAKE OUR COMMUNITY SAFER? THAT IS A MANAGEMENT QUESTION THAT I HAVE FOR YOU AS CHIEF.

CAN YOU HELP US GET THAT NUMBER DOWN? YES, I, YES I WAS, I I I THINK THAT'S A VALID QUESTION AND I APPRECIATE THAT QUESTION.

BUT LEMME ME SUBMIT, UH, TO THIS BODY THAT IN FISCAL OF 17, WE DID NOT HAVE MANDATORY FORM FOUR STAFFING.

AND I, AND MAYBE I'M NOT EXPLAINING CLEARLY THAT HOW YES, YOU DID HAVE MANDATORY, I'M, I'M SORRY, I'M FAIRLY CERTAIN THAT YOU HAD MANDATORY FOR PERSON STAFFING IN 17, IT WAS IN 2013 THAT IT CAME ON.

YOU WERE JUST UNDER, JUST COMING OUT OF A CONSENT DEGREE AND YOU HAD A LOT OF VACANCIES.

WE HAD A HUGE NUMBER OF VACANCIES.

WE HAD TO HAVE THE, UM, A LOT OF PEOPLE WHO ARE IN STAFF ROLES COME OUT INTO OPERATIONS.

UM, YOU CAME WITH, YOU KNOW, I HAVE IN MY HEAD THAT IT WAS A 13 MILLION INCREASE IN OVERTIME, BUT THAT'S NOT POSSIBLE.

IT'S AT LEAST 3 MILLION OVERTIME REQUEST THAT YOU CAME TO COUNCIL WITH MIDYEAR.

UM, WE ARE NOW UP TO 20 MILLION FISCAL YEAR 22.

I DON'T REMEMBER YOU EVER COMING TO GET A AMENDMENT FROM US TO GO UP THAT MUCH.

UM, SO I, SO I THINK THIS HISTORY MATTERS AND, AND WE, WE, WE'VE SEEN THAT THIS CAN BE UNDER CONTROL.

WE CAN SEE THAT WE CAN REDUCE THAT.

I THINK EVERYONE ON THIS DIAS SHARES THE DESIRE TO MAKE SURE THAT WE'RE STAFFING.

I THINK MOST OF US ON HERE WERE CO-SPONSORS OF AN ITEM THAT COUNCIL MEMBER KELLY HAD THE OTHER DAY TO LOOK AND TO, TO SEE WHAT WE NEED IN OUR DEPARTMENT.

UM, BUT JUST AS WE'RE ASKING EMS TO DO BETTER ON THEIR REVENUE MANAGEMENT SO WE CAN FUND THEM, WE NEED YOU TO LOOK AT YOUR OVERTIME AND FIX YOUR OVERTIME SO WE HAVE THE MONEY TO FUND THE, THESE OTHER THINGS THAT, THAT WE WANNA HAVE FOR OUR DEPARTMENT.

YEAH, AND, AND I APPRECIATE THAT.

I THINK ONE OF THE THINGS WE HAVE BEEN STRUGGLING WITH AND TRYING TO DO IS TO GET THOSE MEMBER WHO ARE ON, UM, INJURY LEAGUE BACK TO WORK.

UH, THAT'S BEEN A STRUGGLE OF OURS.

UH, SO IF WE HAVE A FIREFIGHTER WHO GOT HURT, WHETHER A ON DUTY OR NOT DUTY, WE'RE AT A ON DUTY OF OFF DUTY TO GET THEM BACK THIS WORK THAT WOULD HELP REDUCE OVERTIME.

I CAN SAY WE GOT ALMOST 70 PEOPLE, WHICH IS A LOT FOR EACH PERSON THAT WE HAD TO HIRE IN THE PLACE, LIKE A THOUSAND DOLLARS PER DAY.

SO YOU, YOU IMAGINE $70,000 PER DAY.

UH, WELL NOT PER DAY CUZ THEY, THEY ALL DON'T WORK EVERY DAY.

THEY WORK ON THREE DIFFERENT SHIFTS.

SO IT'S ABOUT 20 PERSON PER SHIFT.

I BELIEVE THAT THE ROUNDS TO BE, UH, PLUS OR MINORS.

SO ONE THING I SAY WE WE'RE DOING IS LOOKING AT HOW CAN WE GET THE PERSONNEL WHO ARE INJURED BACK TO WORK.

AND ANOTHER THING AS AS COUNCILMAN FROM WIN, UM, TALKED ABOUT WHAT COULD WE DO, IF ANYTHING, TO LOOK AT HOW CAN WE, UH, HELP REDUCE THE SICK LEAVE ON THE WEEKEND, WHICH I'M NOT QUITE SURE, UH, WHAT METHODOLOGY THAT WE CAN USE RIGHT STANDING HERE, BUT IT MAY OR MAY NOT BE SOMETHING THAT WE CAN DO.

BUT SOMETHING THAT WE NEED TO, I WOULD DE UH, DIVE DEEPER INTO IS ONE OTHER THING.

UH, AND ANOTHER THING, UM, WE, SINCE I'VE BEEN HERE IN AUSTIN FIRE, I HAVE SEEN A LARGE NUMBER OF THE MEMBERS IN OUR DEPARTMENT WHO ARE EITHER, I DON'T WANNA USE THE WORD SUFFERING FROM MENTAL ILLNESS OR PTSD, BUT I HAVE SEEN, UH, UH, UNLIKE I HAVE SEEN OTHER IN OTHER DEPARTMENTS ACROSS THE COUNTRY, THE AUSTIN FIRE DEPARTMENT OF PERSONNEL, UH, EXPERIENCED

[00:45:01]

SOME MENTAL FATIGUE.

AND THAT I BELIEVE IS ALSO A REASON OF THE INCREASE OF SICKLY ABUSE.

SO TO ANSWER YOUR QUESTION, COUNCIL MEMBER IS I WILL LOOK INTO HOW CAN WE REDUCE SICK LEAVE, UH, THE MENTAL HEALTHCARE FOR OUR MEMBERS, UH, WHAT POLICY WITHOUT PUNISHING OUR MEMBERS DO WE CAN DO TO REDUCE SICK LEAVE ON THE WEEKENDS AND AS WELL AS, UH, DIVE DEEPER INTO OTHER FACTORS ACCORDING TO HOW THIS AUDIT POINTED OUT THIS DRIVING TIME.

JUST REAL QUICK, I JUST WANNA BE REALLY CLEAR ABOUT MY, MY COMMENTS.

IT'S NOT ABOUT REDUCING SICK LEAVE, YOU KNOW, CUZ I, I, AGAIN, I SUPPORT PAID SICK LEAVE AND, AND A STRONG PROPONENT OF THAT.

IT'S ABOUT HOW DO WE REDUCE THE OVERTIME PAY.

SO JUST WANNA MAKE THAT DISTINCTION.

ABSOLUTELY.

I MEAN, I, I UNDERSTAND WE HAVE TO MAKE, WE HAVE TO HAVE THE DATA AND THE INFORMATION TO MAKE A DECISION OF WE THOUGHT WE SHOULD BE HIRING ADDITIONAL FIREFIGHTERS AND PAYING AT THEIR RATE OR PAYING AT THE OVERTIME RATE AND UNDERSTANDING, YOU KNOW, HOW THOSE COMPARE FROM A SAFETY PERSPECTIVE, HOW THOSE COMPARE FROM A FINANCIAL PERSPECTIVE.

AND WE'RE NOT, WE'RE NOT BEING, WE DON'T HAVE THE ANALYSIS TO BE ABLE TO MAKE THOSE CHOICES AT THIS POINT IN TIME.

I WILL ADD, WITH RESPECT TO THE SICK LEAVE, I THINK PART OF THE CHALLENGE I WOULD, WOULD VENTURE AND HYPOTHESIZE IS THAT YOU ONLY HAVE A CERTAIN NUMBER OF FOLKS WHO CAN GET VACATION SLOTS ON THE WEEKEND AND SOMEBODY HAS A GRADUATION OR THEY HAVE A WEDDING OR SOMETHING AND SO THEY'RE TAKING SICK LEAVE.

NOW, I THINK YOU MIGHT, IN OUR COLLECTIVE BARGAINING PROCESS RIGHT NOW, WANT TO CONSIDER AND THINK THROUGH WHETHER THERE'S A BETTER WAY TO DO THAT SO THAT, YOU KNOW, MAYBE TWICE A YEAR THEY HAVE AN OPPORTUNITY TO GO ABOVE THAT NUMBER IF IT'S NOT ABOVE A CERTAIN NUMBER.

BUT THEY HAVE TO TELL YOU IN ADVANCE SO YOU CAN PLAN FOR IT.

AND IT MAY BE THAT BEING ABLE TO PLAN FOR OVERTIME IN ADVANCE RATHER THAN IT HAPPENING, YOU KNOW, AS SICK LEAVE GIVES YOU MORE.

AND IF THEY DO THAT, YOU GET THE SAVINGS CUZ THEY CAN'T TAKE THAT VACATION DAY ANOTHER DAY.

THERE MAY, YOU KNOW, YOU HAVE TO LOOK AT THE WHOLE SUM, YOU KNOW, OF WHAT IS GOING ON.

UM, I AM GOING TO ASK, UM, YOU CHIEF TOGETHER WITH ACM MILLS TO TAKE A LOOK AT THIS OVERTIME THING.

I WOULD LIKE TO KNOW WHERE WE'RE TRACKING IN FISCAL YEAR 23.

UM, WE DON'T HAVE THE SAME COVID THINGS, YOU KNOW, IF, IF THAT WAS THE DRIVER, THIS SHOULD BE GOING DOWN.

UM, WE NEED TO UNDERSTAND WHERE WE ARE IN OUR PROJECTIONS FOR FISCAL YEAR 23, AND THEN WE NEED TO UNDERSTAND WHAT STEPS WE ARE TAKING, UM, TO ADDRESS THAT.

THOSE STEPS MAY BE THAT WE NEED MORE FIREFIGHTERS.

I DON'T KNOW WHAT THE RIGHT BALANCE IS, BUT IT DOESN'T SEEM LIKE IT HAS TO BE THE NORM TO HAVE $20 MILLION OF OVERTIME BEING SPENT, UM, IN THE FIRE DEPARTMENT AS THE, AS THE REGULAR PACE OF THINGS.

UM, AND THERE COULD BE ANY NUMBER OF SOLUTIONS AND THEY MAY, YOU KNOW, ON NET BE ABOUT THE SAME AMOUNT OF MONEY, BUT THEY MAY BE BETTER FOR THE SAFETY OF OUR COMMUNITY AND THE SAFETY OF OUR EMPLOYEES, OR IT COULD SAVE US MONEY.

I DON'T HAVE THAT INFORMATION, BUT IF WE DON'T PUT AN EMPHASIS ON IT AND WE DON'T LOOK AT IT, WE WILL NOT SOLVE THE PROBLEM.

AND I HAVE CONFIDENCE AS WE DID IN 2017 THAT WE'LL BE ABLE TO DO THAT.

AND IN THOSE YEARS WE WERE ABLE TO REDUCE IT A CONSIDERABLE AMOUNT.

UM, ABSOLUTELY.

SO I WOULD ASK YOU AND I SEE ACM MILLS, UM, IN THE BACK NODDING THAT YOU GUYS WILL, WILL LOOK AT THAT.

UM, YES, WE WILL FOR US.

SO THANK YOU.

APPRECIATE IT.

ANY OTHER QUESTIONS? OKAY, THANK YOU CHIEF.

TO ITEM NUMBER FOUR, WHICH IS, UM, ANOTHER LOOK BACK AT ANOTHER AUDIT, ALTHOUGH THIS ONE'S A LITTLE BIT DIFFERENT IN THAT WE'VE ASKED THE CITY MANAGER STAFF TO COME AND REPORT BACK TO US ON WHAT THEY'RE DOING, UM, AS FURTHER IMPLEMENTATION STEPS FOR AN AUDIT, UM, THAT WE INITIATED IN 2021 POST URI TO LOOK AT OUR DISASTER PREPAREDNESS THAT WAS PRESENTED IN 21.

THANKS EVERYONE.

THANK YOU TO THE AUDIT STAFF FOR LOOKING BACK AT THIS.

UM, OKAY, WE ARE NOW GOING TO MOVE

[4. Disaster preparedness audit recommendations update.]

WE'VE HAD SEVERAL OTHER REPORTS, BUT, UM, ONE OF THE THINGS IN THE ORIGINAL REPORT IS, WAS THAT WE WEREN'T ACTUALLY IMPLEMENTING RECOMMENDATIONS FROM AFTER ACTION REPORTS.

SO WE WANNA MAKE SURE THAT OUR STAFF IS COMING BACK AND REPORTING TO US UNTIL WE'RE THROUGH ALL OF THESE, UM, RECOMMENDATIONS.

OF THE CITY O AUDITOR RELEASED THE REPORT TO STAFF, UH, STAFF, UH, RESPONDED, UH, BY MAKING, UH, SEVERAL CHANGES IN, UH, ADJUSTING TO THOSE.

GOOD MORNING, MR. SYKES.

GOOD MORNING CHAIR.

GOOD MORNING COUNCIL MEMBERS, KENT SNIPES DIRECTOR, UH, HERE WITH AN UPDATE REGARDING THE DISASTER PREPAREDNESS, UH, AUTO RECOMMENDATIONS, UH, STARTING WITH A BIT OF HISTORY.

NEXT SLIDE PLEASE.

UH, ON MARCH 25TH, 2021 COUNCIL PASS, RESOLUTION NUMBER 20 21 0 3 25 DASH 67, UH, DIRECTING THE OFFICE OF THE CITY AUDITOR TO CONDUCT AN, UH, AUDIT OF THE CITY'S RESPONSE FOR WINTER STORM URI.

UM, IN 2000, ALSO IN 2021 NOVEMBER, UM, THE OFFICE

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AND THEN JANUARY 20, EXCUSE ME, JANUARY 19TH OR 2022, UH, STAFF RESPONDED, UH, MADE THEIR FIRST PRESENTATION TO THE AUDIT AND FINANCE COMMITTEE ON THE 10 RECOMMENDATIONS, AND THEN ALSO, UH, GAVE A SECOND UPDATE ON JUNE 15TH, 2022.

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THE RECOMMENDATIONS, THERE WERE 10 RECOMMENDATIONS THAT CAME FROM THE OFFICE OF THE AUDITOR.

UH, ONE WAS PREPARED FOR SIGNIFICANT AND CATASTROPHIC EVENTS.

TWO, WAS PRIORITIZED IN COMPRE COMPREHENSIVE COOP PLANNING SYSTEM.

THREE, PRIORITIZE DISASTER PREPAREDNESS AND COMMUNITY RESILIENCE.

FOUR WAS IMPLEMENT PAST CORRECTIVE ACTIONS, MITIGATIONS RECOMMENDATIONS, UH, FIVE, EVALUATE STAFFING.

UH, SIX WAS UPDATE POLICY AND PROCESS FOR ENSURING ADEQUATE STAFF ARE TRAINED.

UH, THIS IS REF, UH, REFERRING TO, UH, CITYWIDE STAFF SEVEN WAS ENSURE CITY WAS ADEQUATE, UH, HAS ADEQUATE EMERGENCY SUPPLIES.

UH, EIGHT WAS CREATE AND IMPLEMENT A LANGUAGE ACCESS ACCESS PLAN.

AND NINE WAS ENSURE THE CITY'S DISASTER RESPONSE EFFORTS ARE EQUITABLE, UH, AND THAT THEY ALSO, UH, ADDRESS, UH, CONCERNS FOR VULNERABLE POPULATIONS IN THE COMMUNITY.

AND THEN FINALLY, NUMBER 10 WAS DEVELOP A PLAN TO INVOLVE COMMUNITY DISASTER PREPAREDNESS AND PLANNING.

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THE RECOMMENDATIONS ARE CATEGORIZED INTO FOUR FOCUS AREAS.

UH, THOSE FOUR FOCUS AREAS ARE PREPAREDNESS, UM, ANALYSIS, IMPLEMENTATION, STAFFING, AND OUTREACH ONTO THE, UH, PREPAREDNESS BUCKET.

UM, THE STAFF AND THE TEAM CONTINUE TO EXPAND PLANNING, UH, AND EXERCISES.

THAT'S GONNA BE A HUGE FOCUS AS WE GO FORWARD.

WE UNDERSTAND THAT THE NEED TO PRACTICE AND, UM, AND MAKE SURE THAT WE ARE, UH, ROUTINELY LEARNING AND GROWING IN THIS SPACE IS GONNA BE HUGELY IMPORTANT.

AND WE ALSO WANT TO PLAN FOR UNCOMMON EVENTS.

I THINK ONE OF THE THINGS THAT HAS BECOME MORE COMMON THAN UNCOMMON ANYMORE, UM, ICE STORMS HERE, UM, HAS, UH, TAUGHT US A FEW THINGS ABOUT, UM, THE NEED TO REALLY, UH, PUT TOGETHER PLANS THAT ARE COMPREHENSIVE IN NATURE.

AND SO WE REALLY WANNA FOCUS ON THAT FROM AN ANALYSIS AND IMPLEMENTATION PERSPECTIVE.

THE, UH, FOCUS THERE IS MAKING SURE THAT WE'RE USING THE DATA THAT WE'VE LEARNED, UH, AND THAT WE HAVE, UH, AND WE, WE WANT TO MAKE SURE THAT WE'RE, UM, NOT, UH, DATA RICH AND KNOWLEDGE POOR, BUT THAT WE ARE USING THAT DATA THAT WE'VE COLLECTED AS, UH, TOOLS TO, TO, TO GROW AND LEARN WITH GOING FORWARD.

THE CRISP COMMUNITY RESILIENCE, UH, IMPROVEMENT STATUS PORTAL IS ONE OF THOSE TOOLS.

WHAT WE HOPE TO DO GOING FORWARD IS TO MAKE THAT TOOL AS COMMON AS ANY OTHER TOOL THAT YOU MIGHT HAVE, A, AROUND YOUR HOME AND ANY OTHER SYSTEM THAT YOU USE, UH, SO THAT IT BECOMES A RE NOT ONLY A REPOSITORY FOR INFORMATION, BUT A PLACE THAT WE CAN GO TO, UH, TO LEARN.

UH, AND AS PART OF THAT, OF COURSE, WE WANT TO RE REEVALUATE OUR PAST, UH, STAFFING.

UM, HIRING CONTINUES TO BE, UH, A LITTLE BIT OF A CHALLENGE.

UH, WE HAVE MADE QUITE A BIT OF PROGRESS.

WE'LL TALK ABOUT THAT, UH, A LITTLE BIT, UM, UH, LATER IN, IN THE PRESENTATION HERE.

UM, BUT TRAINING CITY STAFF IS GONNA BE REALLY IMPORTANT TO MAKE SURE THAT ACROSS THE ENTERPRISE, UH, DURING EMERGENCIES, WE HAVE ENOUGH SUPPORT TO, UH, FULLY, UM, IMPLEMENT, UM, THE RESPONSE PLANS AND, AND PRACTICES THAT NEED TO BE PUT FORWARD DURING AN EMERGENCY.

UM, OUTREACH.

UM, TARGETED COMMUNITY EDUCATION IS GONNA BE A CRUCIAL AND VITAL COMPONENT.

AND THEN IN GENERAL, JUST, UH, PREPAREDNESS ACROSS, UH, THE ENTIRE CITY AND THE REGION.

A LITTLE BIT ABOUT THE NEXT SLIDE, PLEASE.

THE CRISP, UH, TOOL, UM, AGAIN, IT IS AN AUTOMATED COMPREHENSIVE APPROACH TO AFTER ACTION REPORTING.

UM, IT ALLOWS US TO, AGAIN, UM, YOU KNOW, CATEGORIZE AND CAPTURE MATERIAL.

IT ALLOWS US TO THEN USE THAT, UM, MATERIAL, EXCUSE ME, THAT INFORMATION, UH, TO, UH, MAKE BETTER INFORMED DECISIONS.

IT IS A FEMA STANDARD OF BEST PRACTICE.

IT IDENTIFIES AREAS OF IMPROVEMENT AND ACTIONS THAT CAN BE IMPLEMENTED.

IT ALSO ALLOWS US TO COMPARE OURSELVES TO SOME OF OUR, OUR OTHER CITIES' PARTNER CITIES THAT ARE USING THE SAME SYSTEM, UH, SO THAT WE HAVE A, UH, MORE ROBUST LESSONS LEARNED OPPORTUNITY.

IT PROVIDES A DYNAMIC AND TRANSPARENT SYSTEM FOR, FOR UPDATES, UM, AND IT ALLOWS US, UH, TO, UH, AGGREGATE DATA TO MAKE IT EASIER FOR US TO MAYBE SOMETIMES, UH, UNDERSTAND, UH, BETTER WHAT THE DATA IS ACTUALLY TELLING US OR WHAT IT CAN TELL US.

NEXT SLIDE, PLEASE.

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WITH RESPECT TO MAJOR DISASTERS, UH, SINCE 2013, UH, THE DATA IN THE SYSTEM GOES BACK TO 2013, AND SINCE THAT TIME, UH, THERE HAVE BEEN 1,147 AFTER ACTION RECOMMENDATIONS, UH, COLLECTED AND 995 OF THOSE RECOMMENDATIONS HAVE BEEN IMPLEMENTED.

AS IT RELATES TO WINTER STORM URI, THERE WERE TWO 113, UM, RECOMMENDATIONS AND TO DATE, 74 OF THOSE HAVE BEEN IMPLEMENTED AND THE REST, UH, STAFF CONTINUE TO WORK ON AND CONTINUE TO ADDRESS, UM, AND WILL CONTINUE TO DO SO GOING FORWARD.

WITH RESPECT TO STAFFING, UH, ONE OF THE ISSUES THAT THE OFFICE TACKLED DURING COVID V D WAS THE FACT THAT, UH, THEY LOST ONE THIRD OF THEIR STAFF, UH, DURING THAT TIME.

UH, SINCE THEN, UH, THEY'VE, UH, MANAGED TO REHIRE SIX POSITIONS AND, UH, THERE ARE THREE ADDITIONAL POSITIONS THAT ARE CURRENTLY IN PROCESS RIGHT NOW.

UM, TO ADDRESS SOME OF THE ISSUES AND TO ENSURE ADEQUATE, UH, AN ADEQUATE ABILITY TO, UH, TO RESPOND TO ISSUES THE STAFF HAS CREATED.

UM, A COUPLE OF DIFFERENT, UH, UH, OPTIONS.

ONE IS THE, UH, DISASTER RESERVES PLAN WHERE TEMPORARY STAFF ARE BROUGHT IN, UH, TO HELP WORK, UH, ON SOME OF THE ISSUES.

UH, AND, UH, CITYWIDE IN 2021, UH, THE TEAM CONDUCTED, UH, TWO TRAININGS, UM, AND TRAINING 70 STAFF THERE.

UH, AND THE REASON THERE WEREN'T MORE DONE DURING THAT TIME WAS, UH, DUE TO COVID, UH, AND ALSO IN 2022, UH, WE'VE, UH, ALSO TRAINED 78 STAFF, UH, IN 10 CLASSES.

AND THE PLAN GOING FORWARD IS TO HAVE A TRAINING CLASS AT LEAST ONCE PER MONTH.

A HUGE FOCUS AREA.

MARKETING AND OUTREACH, UH, IS, UH, ONE OF THOSE AREAS.

UM, A NEW CITYWIDE, UH, ALL HAZARDS APPROACH TO MARKETING, UH, HAS BEEN IMPLEMENTED.

UM, I THINK THAT'S GONNA BE IMPORTANT GOING FORWARD BECAUSE AS WE TALKED ABOUT, UM, WE WANT TO UNDERSTAND THAT THE, UM, THE CHANGING ENVIRONMENT AND, AND AND, UH, CLIMATE CHANGE, UH, HAS SI, SI A CAUSE.

I THINK, UH, SOME IMPACTS THAT, UM, WE WERE NOT TRADITIONALLY, UM, COMFORTABLE ADJUSTING OR ADDRESSING HERE IN THE CITY OF AUSTIN.

UM, WE WANT TO LEAD A SEASONAL BASE, WEATHER PREPAREDNESS CAMPAIGNS.

UM, THOSE ALLOW US TO ADDRESS, UH, WINTER STORMS WHEN THAT'S APPROPRIATE, FLOODING, WHEN THAT'S APPROPRIATE.

AND ALSO, UH, FIRE SEASON, UH, WHEN THAT'S APPROPRIATE.

UM, A LANGUAGE ACCESS PLAN, UH, THAT HAS BEEN A HUGE FOCUS AREA.

WE KNOW THERE HAVE BEEN SOME GAPS THERE AND WE ARE WORKING TO CLOSE THE GAPS ON, ON SOME OF THOSE AREAS.

UM, ALSO, UH, THERE'S A FOCUS ON ADDRESSING AND, AND REACHING OUR YOUTH AND VULNERABLE POPULATIONS.

AND, UH, ALSO RESTARTING THE, UH, COMMUNITY EMERGENCY RESPONSE TEAM TRAINING.

READY CENTRAL TECH.

UH, TEXAS IS A CAMPAIGN THAT WAS CREATED BY THE, UH, HOMELAND SECURITY AND EMERGENCY MANAGEMENT TEAM HERE IN AUSTIN.

IT HAS A REGIONAL FOCUS, UH, AND THIS IS THE ATTEMPT THERE IS TO LEVERAGE OUR PARTNERS IN OTHER CITIES AND AROUND THE COUNTY, UM, IN THE REGION.

UM, IT WAS LAUNCHED, PHASE ONE WAS LAUNCHED IN, UH, WAS LAUNCHED IN, UH, REACHED, UM, 300,000 PEOPLE.

AND, UH, PHASE TWO REACHED 2,055,304, UH, PEOPLE.

AND THIS IS A CAMPAIGN THAT, UH, WE WILL CONTINUE TO, UH, PUSH AND IT HAS BEEN VERY SUCCESSFUL SO FAR.

UM, WE WILL CONTINUE TO, UM, TO WORK ON THE PROGRAM AND, UH, EVOLVE WITH IT.

THE COUNCIL ADD, THERE WAS ANOTHER, UH, 19 POSITIONS ADDED.

THESE ARE THE RESULTS OF THE, UM, RECOMMENDATIONS.

UM, MANY OF THE RECOMMENDATIONS THAT YOU SEE HERE HAVE, UH, CONTINUOUS AS A STATUS.

AND WHAT THAT MEANS IS, UM, ALL OF THE, UH, SHORT RANGE, UH, ISSUES ASSOCIATED WITH THOSE HAVE BEEN ADDRESSED.

BUT THERE ARE MANY THAT ARE ONGOING AND THEY SHOULD BE, UM, PREPARE FOR SIGNIFICANT AND CATASTROPHIC EVENTS, FOR EXAMPLE.

UH, THAT IS SOMETHING THAT WE WILL CONTINUE TO DO.

UM, WE DON'T WANT TO GET OURSELVES INTO A MODEL WHERE WE ADDRESS AN ISSUE AND THEN WE ARE DONE WITH IT.

WE WANT TO CONTINUE TO KEEP THESE ISSUES ON THE FOREFRONT TO MAKE SURE THAT WE'RE PROGRESSING.

AND THAT CONCLUDES OUR PRESENTATION AND QUESTIONS.

THANK YOU MR. SCH SNIPS, UH, COLLEAGUES QUESTIONS.

UM, OKAY.

UM, FOR THE HESSAM VACANCIES, UM, HOW MANY ARE THEY AUTHORIZED FOR CURRENTLY? HOW MANY POSITIONS ARE THEY AUTHORIZED FOR? AND HOW MANY HAVE THEY? I THINK INITIALLY THERE WERE ROUGHLY 15 POSITIONS, AND THEN, UH, AFTER

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SO, UM, ALL TOLD THAT'S GONNA BE WHAT, 35 POSITIONS THERE THAT THEY'LL HAVE ON STAFF.

AND HOW MANY DO THEY HAVE ON STAFF? HOW, WHAT'S THE FULL 24? UH, 24 RIGHT NOW.

SO PLUS TEMPORARY FOCUS, PLUS TEMPS.

UM, AGAIN, I THINK IT'S A REALLY HIGH PRIORITY THAT WE ACTUALLY GET THESE POSITIONS FILLED.

UM, IT FEELS A LITTLE BIT LIKE THE SITUATION IN 9 1 1, WHERE WE HAD REALLY NOTICED THAT THERE WAS NOT ENOUGH STAFFING AND WE TRIED TO ADDRESS IT AND IT WASN'T ADDRESSED.

UM, WE HAVE ADDED STAFFING.

WE HAVE SAID WE NEED THESE POSITIONS.

UM, WE NEED TO GET, UH, PEOPLE IN THERE WHO CAN SUPPORT THESE EFFORTS ON THAT.

UM, THERE WERE, UM, A COUPLE THAT WERE PARTICULAR AND RELATED TO THE RECOMMENDATIONS FROM THIS AUDIT, THE MASS CARE COORDINATOR AND THE TECHNOLOGY STRATEGY OFFICER.

HAVE THOSE BEEN HIRED? NOT YET.

WE, THOSE TWO ARE STILL VACANT MASK.

WE'RE CLOSING ON THOSE.

THOSE, THOSE ARE TWO OF THE THREE, UM, THAT ARE, UM, ONGOING AND CLOSING.

AND THEN, UM, WHERE DO WE STAND ON FUNDING REIMBURSEMENTS? AND DO WE HAVE A PLAN FOR WHEN THOSE FUNDS COME IN? SINCE I BELIEVE THEY'VE JUST BEEN ACCOUNTED FOR AS TAKEN OUT OF THE RESERVES? UM, WHEN THAT MONEY COMES, ARE WE GOING TO BE REINVESTING THAT IN OUR PREPAREDNESS? DO WE HAVE A PLAN FOR THAT? WHAT, WHERE'S THE STATUS FOR THOSE EXCEPT FOR WINTER TOMORROW? QUESTION.

UH, I MEAN, WE HAVE IT FOR COVID.

I MEAN, THERE'S, THERE'S, THERE'S PROBABLY, LEMME SPEAK TO COVID.

YOU KNOW, THERE'S 10 TENS OF MILLION, IF NOT A HUNDRED MILLION DOLLARS WORTH OF REIMBURSEMENTS FROM FEMA OVER THE LAST FEW YEARS.

UH, COUNCIL MEMBER JUAN ORTIZ THERE'RE DIFFERENT DISASTERS THAT WE'RE CURRENTLY MANAGING RIGHT NOW, AND EACH ONE IS IN DIFFERENT, DIFFERENT STAGES.

THE MOST RECENT ONE IS THE ONE THAT WAS DECLARED FOR WHEN SAMARA, THAT ONE JUST GOT DECLARED OVER THE WEEKEND.

SO WE'RE BARELY GOING TO, UM, MEET WITH FEMA TO ACTUALLY SUBMIT THE REIMBURSEMENT ASPECTS OF THAT.

WE'VE BEEN, UH, WORKING TO MAKE SURE THAT ALL THE DAMAGE ASSESSMENTS WERE SUBMITTED TO THE STATE TO MAKE SURE THAT THAT DECLARATION WAS ACHIEVED AND IT WAS ACHIEVED.

SO NOW WE'RE IN THE NEXT SPACE OF ACTUALLY WORKING WITH FEMA AND, AND, AND THE TEXAS DIVISION OF EMERGENCY MANAGEMENT SUBMIT THOSE REIMBURSEMENTS.

SO THAT'S GONNA START, UH, APPROXIMATELY, UM, 45 MILLION WERE SUBMITTED AS CITY, UH, UM, DISASTER RELATED COSTS.

AND, UH, WE'RE GONNA BE WORKING ON, ON TRYING TO GET, UH, THAT REIMBURSEMENT THAT'S GONNA BE REIMBURSED AT 75 CENTS PER TO THE DOLLAR.

SO THAT'S, UH, UM, A SIGNIFICANT AMOUNT OF, OF FUNDING.

THE OTHER ONES ARE IN DIFFERENT STAGES.

WE'RE STILL CONTINUING WITH THE, UH, COVID REIMBURSEMENT PROCESS AND THERE'S STILL, UH, ADDITIONAL WORK THAT, THAT WE'RE, THAT WE'RE WORKING ON AT DIFFERENT, DIFFERENT, UH, PROJECTS HAVE BEEN ALREADY BEEN SUBMITTED.

WE ARE WORKING THROUGH, UH, UH, ANSWER ADDITIONAL QUESTIONS AND RE COME UP WITH RESOLUTIONS TO SOME OF THE, THE ISSUES AND SOME OF THE MORE SPECIFIC PROJECTS.

BUT I THINK WE CAN GIVE YOU A, A DETAILED REPORT OF WHAT, UM, UM, FUNDS HAVE COME IN FOR THOSE, THOSE COSTS THAT HAVE BEEN SUBMITTED.

I THINK, UM, WE CAN, WE CAN HAVE THIS CONVERSATION OFFLINE IN, IN MORE, MORE DETAIL THAN IS POSSIBLE IN THIS SETTING, BUT IT IS DEFINITELY SOMETHING THAT I WANT US TO, TO THINK ABOUT.

UM, AND THEN I JUST WANNA POINT OUT, IT DOESN'T LOOK LIKE CRISP HAS BEEN UPDATED SINCE 22 FOR, UM, OBVIOUSLY WE DON'T HAVE THE MA REPORT YET, BUT WE DID HAVE A BOIL WATER REPORT.

UM, SO THERE MAY JUST BE SOME ADDITIONAL UPDATES TO CRISP THAT.

I WAS JUST ON THERE THE OTHER DAY AND AS FAR AS, I MIGHT HAVE NOT SEEN ALL OF IT, BUT I DIDN'T, DIDN'T SEE, SAY THE BOIL WATER, UM, SITUATION.

SURE.

WE CAN FOLLOW UP ON THAT.

BUT THE TEAM IS ACTIVELY WORKING IN CRISP, SO, UM, WE CAN CHECK THE, TO SEE WHAT THE SPECIFIC, AND I WAS RELATIVELY NEW TO CRISP.

THERE MAY BE, YOU KNOW, I, I WAS LOOKING AT THE PARTICULAR ICONS FOR, FOR REPORTS, SO, SO IT MIGHT BE IN THERE AND I MISSED IT, BUT, UM, I WANNA MAKE SURE THAT IT'S AS UP TO DATE AS POSSIBLE.

UM, THANK YOU FOR, FOR THIS UPDATE.

UM, WE HAVE 74 OF 213 RECS FOR URI IMPLEMENTED.

IS THAT WHAT YOU SAID? UH, YES.

SO WHAT IS THE PLAN FOR THE OTHER 140, IF I HAVE MY NUMBERS RIGHT, WE'RE, WE'RE WORKING ALL OF THOSE, UH, UPDATES AND WHAT I CAN DO, IF YOU WANT, WE CAN SHARE THOSE WITH YOU, UH, SPECIFICALLY ON WHAT'S OUTSTANDING AND WHAT THE PLAN IS FOR, FOR CLOSING

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THOSE.

BUT THEY, THEY VARY DEPENDENT ON THE ITEM.

I MEAN, I THINK THAT WAS PART OF, YOU KNOW, THERE, SO PART OF, PART OF THE IDEA OF HAVING THESE CHECK-INS IS TO MAKE SURE THAT WE ARE GETTING ALL THOSE AFTER ACTION REPORT RECOMMENDATIONS, EITHER IMPLEMENTED OR DECIDING IT'S NOT THE PRIORITY.

MM-HMM.

, SOMETIMES THOSE MAY NO LONGER BE THE PRIORITY OR WE'VE CHOSEN TO DO SOMETHING ELSE.

I UNDERSTAND THAT.

UM, BUT WE HAVE SEEN WITH A SERIES OF DISASTERS THAT WE COME BACK TO THE SAME PROBLEM, SAY LANGUAGE ACCESS.

UM, BUT BECAUSE WE NEVER FIXED IT THREE DISASTERS AGO, IT'S STILL CROPPING UP.

AND WE WANTED TO, IN HAVING THESE REPORTS AND HAVING THESE CONVERSATIONS TO, TO BE ABLE TO FEEL COMFORTABLE THAT WE HAD RESOLVED ISSUES OR AT LEAST OPENLY MADE DECISIONS ABOUT, UM, PRIORITIES RATHER THAN JUST NOT DOING THINGS, WHICH WAS THE IMPRESSION WE HAD BEFORE.

UM, SO WHEN YOU COME BACK TO US AGAIN, WHICH WE WILL HAVE YOU DO, UM, WE REALLY ARE GONNA WANNA SEE THAT PROGRESS ON THOSE OTHER IMPLEMENTATION ITEMS OR, OR, OR, OR WHY WE HAVEN'T DONE THOSE, UM, TO UNDERSTAND THAT.

UM, BUT IT WOULD IN THE MEANTIME BE HELPFUL TO UNDERSTAND THE STATUS OF, YOU KNOW, WHICH OF THE ONES ARE COMPLETE AND WHICH ONES ARE NOT COMPLETE.

UM, FROM YARE, WE ARE, YOU KNOW, MORE THAN TWO YEARS OUT FROM THE EVENT.

I DON'T KNOW WHAT THE MAGNITUDE OF THOSE THINGS ARE.

I HAVE IMAGINE THAT MANY OF THOSE HINGE ON NOT HAVING THE STAFF TO DO THE WORK, UM, WHICH IS WHY I'M EMPHASIZING THE NEED FOR THAT STAFFING.

SO IF WE CAN, IF WE CAN, UM, PLAN FOR THAT, UM, THE INTERIM REPORT WITH THE, THE, THE DETAILS RELATIVES TO THE 213 RECS, AND THEN WHEN YOU COME BACK, UM, TO HELP US TO UNDERSTAND WHERE WE'RE AT WITH THOSE RECS, I THINK WOULD BE, WOULD BE HELPFUL.

APPRECIATE THE PROGRESS THAT HAS BEEN MADE.

I KNOW PARTICULARLY IN THE WORK THAT HAS BEEN DONE VIS-A-VIS THE PUBLIC, UM, I WAS FORTUNATE TO HAVE ONE OF THE FIR EARLY POP-UPS, UM, FOR THE EMERGENCY PREPAREDNESS.

AND I THINK THOSE WERE VERY WELL RECEIVED IN THE COMMUNITY.

UH, WE REALLY DO NEED TO TAKE ADVANTAGE OF THE FACT THAT OUR COMMUNITY IS PRIMED TO KNOW, OKAY, WE DO NEED TO BE PREPARED.

UM, BUT GETTING THOSE RESOURCES IN THEIR HANDS NOW I THINK IS IMPORTANT.

I THINK THAT POP-UP, UM, SERIES LIKELY SHOULD CONTINUE AND, UM, HAS BEEN, HAS BEEN, UM, REALLY IMPORTANT IN THAT REGARD.

UM, AND THERE WERE CERTAIN THINGS THAT WE SAW THAT WERE IMPROVED IN MARA EVEN AS WE HAD TO DEAL WITH A NEW DISASTER.

BUT, BUT I THINK WE DO NEED TO CONTINUE TO MAKE THIS A PRIORITY.

UM, AND THAT DOES REQUIRE THOSE RESOURCES WITHIN KK TO DO IT.

COUNCIL MEMBER F DESK.

JUST TO ECHO YOUR, YOUR SENTIMENTS COUNCIL MEMBER ALTER THE POP-UP EVENTS WERE INCREDIBLE.

I KNOW I RECEIVED LOTS OF GREAT FEEDBACK FROM MY COMMUNITY AND I THINK THAT TYPE OF MODEL WOULD BE HELPFUL WHEN YOU ARE DEVELOPING THE, UM, THE DISASTER PREPAREDNESS PLAN WITH, WITH THE COMMUNITY.

SO HAVING SOMETHING LIKE THAT WHERE THE COMMUNITY CAN COME TO AN, UH, A CENTRAL LOCATION IN THE DISTRICT TO WEIGH IN AND HELP SHAPE THAT PLAN WOULD BE HELPFUL AND HAPPY TO PARTNER WITH YOU ON THAT.

UM, I JUST WANNA TAKE A, A, A QUICK MINUTE TO HIGHLIGHT THE LANGUAGE ACCESS PLAN AND THE WORK THAT'S BEING DONE AROUND LANGUAGE ACCESS, BECAUSE THAT HAS BEEN RAISED ON THESE LAST FEW DISASTERS THAT WE'VE HAD.

AND, UM, AND ALSO JUST KNOWING THAT AS A TOP ISSUE FOR THE AREA THAT I REPRESENT, WERE ONE IN FIVE, ONE AT ONE OUT OF EVERY FIVE RESIDENTS IN D TWO ARE IMMIGRANTS.

AND SO I, YOU KNOW, LANGUAGE ACCESS IS TOP OF MIND FOR ME.

UH, SO CAN YOU SPEAK TO A LITTLE BIT MORE ABOUT WHAT THE WORK THAT'S TAKING PLACE WITH THAT? UH, YES.

UH, COUNCIL MEMBER? UM, REALLY GOOD QUESTION.

AND I'M ALSO GONNA ASK MEMBERS OF THE TEAM, UH, IF THERE'S A PART THAT I MISSED, UH, TO COME UP AND, AND EXPAND ON THAT.

UH, WE ARE CONTINUING TO WORK ON THAT.

THERE'S ALWAYS, UH, A LOT OF, UM, UM, AREAS THAT WE NEED TO DO.

THE MAIN THINGS THAT WE'RE DOING IS LOOKING AT DIFFERENT WAYS SO WE CAN GET THE INFORMATION OUT IN DIFFERENT LANGUAGES AND, UH, UH, ON A TIMELY BASIS, GET IT CORRECTLY.

AND IF WE MAKE A MISTAKE, CHANGE IT AND CORRECT IT AND PUT IT BACK OUT THERE, UH, VERY QUICKLY CUZ WE WANNA MAKE SURE THAT EVERYONE HAS ACCESS TO THE INFORMATION.

UH, ONE OF THE THINGS THAT, UH, I LIKE TO HIGHLIGHT IS THE PARTNERSHIP THAT WE HAD WITH, UH, TRAVIS COUNTY IN CREATING THE, UM, UH, THE, UH, ACCESSIBLE HAZARD ALERT SYSTEM, WHICH, UH, DISSEMINATES INFORMATION IN, IN, IN AMERICAN SIGN LANGUAGE TO THOSE RESIDENTS.

AND SO THAT'S, UH, THAT'S, THAT'S ANOTHER PART THAT IS VERY IMPORTANT.

MORE SPECIFICALLY, WE'RE ALSO, UH, WE'VE CREATED A ALERT WEBSITE THAT HAS A LOT OF THE INFORMATION AVAILABLE THERE, UH, AL ALREADY IN DIFFERENT LANGUAGES.

AND NOT JUST TRANSLATED INTO, UM, UM, ENGLISH OR, OR MANDARIN OR, OR ALL THE DIFFERENT LANGUAGES, BUT WE WANNA MAKE SURE THAT, THAT WE'D LOOK AT, TAKE A COMPREHENSIVE APPROACH IN GETTING THAT INFORMATION OUT.

UH,

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AND WHEN WE HAVE AN EMERGENCY, WE'RE GONNA BE PROVIDING UPDATES, TRANSLATING THOSE INTO DIFFERENT LANGUAGES AND ADDING THAT INFORMATION ON THAT WEBSITE.

AND OUR MARKETING CAMPAIGN IS AIMING AT MAKING SURE THAT EVERYBODY'S AWARE OF THOSE EFFORTS SO THAT PEOPLE KNOW WHERE TO GO TO GO GET THAT INFORMATION.

IN ADDITION TO THAT, WE'RE GONNA, WE'RE LOOKING TO EXPLORE WHAT OTHER WAYS WE CAN GET, UH, INFORMATION IN DIFFERENT LANGUAGES.

AND THAT MAY TAKE A LITTLE BIT LONGER TIME, UH, BUT WE WANNA MAKE SURE THAT THE INFORMATION IS, UH, IS, UH, COMMUNICATED AND DIFFERENT AND DIFFERENT LANGUAGES, DIFFERENT PLATFORMS TO MAKE SURE THAT IT'S TIMELY, MAKE SURE THAT IT'S ACCURATE, UH, AND SO, SO EVERYBODY GETS THE WORD.

THANK YOU FOR THAT.

AND, AND JUST REALLY WITH THE EMPHASIS BEING ON THE COMMUNICATION, GETTING OUT TO THE COMMUNITY, YOU KNOW, CAUSE WE FOUND WITH THE, WITH THE POWER OUTAGES, IT WAS DIFFICULT TO RELY SOLELY ON FOLKS GOING TO A WEBPAGE.

SO TO THE EXTENT THAT WE CAN REALLY LEAN INTO THE TOOLS THAT WE HAVE WITH TEXT MESSAGING, PHONE CALLS, UM, YOU KNOW, RADIO UPDATES, LIKE THOSE ARE THE, THE OTHER KEY PIECES IN THIS AS WELL.

WE WILL.

MS. KING, DID YOU WANNA SAY SOMETHING? NO.

UM, COUNCIL MEMBER FUENTES, I'LL JUST POINT OUT THAT OUR NEXT ITEM IS THE LANGUAGE ACCESS FOLLOW UP AUDIT, WHICH IS BEING POSTPONED TILL NEXT MONTH, BUT WE'LL BE HAVING THAT CONVERSATION, UM, IN MAY.

AND, AND WE WERE ASKED TO GIVE THEM A LITTLE BIT MORE TIME SO THAT THEY COULD DO, TO DO MORE WORK ON THAT.

UM, ANY OTHER QUESTIONS FOR OUR DIRECTOR, SIR? OR, I'M NOT SURE WHAT YOUR TITLE CURRENTLY IS, BUT, UH, THANK YOU MR. SIPES.

UM, ABSOLUTELY.

WE APPRECIATE THE REPORT.

WE APPRECIATE THE WORK OF ALL OF OUR EMERGENCY MANAGEMENT PROFESSIONALS.

THANK YOU MR. ART ORTIZ.

UM, THANK YOU.

UM, DO I HAVE A, I JUST WANNA CHECK IF I HAVE A, IF, IF THAT'S COUNCIL MEMBER KELLY ON MINE.

UM, GREAT WELCOME.

UM, SO ITEM NUMBER FIVE IS THE LANGUAGE ACCESS FOLLOW UP AUDIT, WHICH WE ARE GOING TO WITHOUT OBJECTION, UH, POSTPONED.

UM, AND THEN OUR NEXT

[6. Small and Minority Business Resources Department on the Inclusive Procurement Working Group (IPWG) Final Report and Recommendations.]

ITEM IS ITEM SIX.

UH, MR. CAMPOS FROM DIRECTOR OF SMALL NAUGHTY BUSINESS RESOURCES WILL BE SPEAKING WITH US ABOUT THE INCLUSIVE PROCUREMENT WORKING GROUP FINAL REPORT AND RECOMMENDATIONS.

AND I JUST WANNA ACKNOWLEDGE THAT, UM, I THINK MAYOR PRO TEM SPONSORED, UM, THE RESOLUTION THAT INITIATED THAT, UM, THAT WORK.

GROUPS INCLUDED THE CERTIFICATION PROCESS, RESOURCES, RESOURCES TO OUR, OUR MINORITY FIRMS AND WOMEN BUSINESSES, AS WELL AS PAYMENT PO POLICIES, COMMUNICATIONS AND TRANSPARENCIES, AND LOCAL PRIORITIZATION, AS WELL AS COVERING OUR ORDINANCE AND BEST PRACTICES.

THERE WE GO.

YOUR MORNING COUNCIL MEMBERS, MAYOR PRO TAM EDWARD PELS, DIRECTOR OF THE CITY OF BOSTON, AND SMALL MINORITY BUSINESS RESOURCES DEPARTMENT.

I THANK YOU FOR HAVING US ON TODAY.

I'M JOINED WITH, UM, MY BUSINESS PROCESS CONSULTANT WHO LED OUR EFFORTS, UH, WITH THE INCLUSIVE PROCUREMENT WORKING GROUP.

AND SHE'S GONNA WALK YOU THROUGH, UH, SOME SLIDES ABOUT THE PROGRESS OF THE WORK, THE FINAL RECOMMENDATIONS, WHICH WERE RELEASED TO COUNCIL IN MARCH AND NEXT STEPS.

SO THANK YOU.

AND WE'LL BE HERE TO ADDRESS ANY QUESTIONS.

THANK YOU, EDWARD.

UM, GOOD MORNING, UM, COUNCIL MEMBERS, MY NAME IS PATRICIA BOK, BUSINESS PROCESS CONSULTANT WITH THE SMALL AND MINORITY BUSINESS RESOURCES DEPARTMENT.

UM, I WANNA THANK YOU FOR THIS OPPORTUNITY TO REALLY HIGHLIGHT THE GREAT WORK THAT WAS PERFORMED BY THE INCLUSIVE PROCUREMENT WORKING GROUP AS WELL AS CITY STAFF.

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

I'M GONNA GIVE YOU A LITTLE BIT OF BACKGROUND ABOUT THE COUNCIL RESOLUTION AND THEN HIGHLIGHT DETAILS OF THE WORK THAT WAS PERFORMED, AND THEN WE'LL GO INTO THE RECOMMENDATIONS AND NEXT STEP.

SO, A LITTLE BIT OF BACKGROUND.

ON MARCH 26TH, 2020, COUNCIL PASSED A RESOLUTION ESTABLISHING THE I P W G TO REVIEW AND PERFORM AN ASSESSMENT OF THE MINOR, EXCUSE ME, OF THE MINORITY BUSINESS ENTERPRISE AND WOMEN'S WOMEN BUSINESS ENTERPRISE PROCUREMENT PROGRAM ORDINANCE, AS WELL AS, UM, REVIEW OUR ADMINISTRATIVE PROCESSES SO THAT THEY COULD RE RECOMMEND WAYS THAT WE COULD ENHANCE OUR OPERATIONS TO BEST SUIT THE NEEDS OF OUR COMMUNITY.

SO THAT RESOLUTION ALSO DIRECTED US TO PROVIDE THE I P W G A BRIEFING OF THE DISPARITY STUDY RESULTS, WHICH ACTUALLY AT THE TIME OF THIS COUNCIL ADOPTION, UM, THE DISPARITY STUDY WAS WELL UNDERWAY.

IN ADDITION, UM, WE WERE TO PROVIDE PERIODIC UPDATES ON PROGRESS, UM, BOTH TO THE COUNCIL.

SO THE ORDINANCE OUTLINED 11 KEY AREAS THAT WERE CATEGORIZED FOR THE I P W G.

SO HOW WE APPROACHED IT, IN ORDER TO, UM, COVER THE WEALTH OF INFORMATION OF THOSE 11 KEY AREAS, WE CATEGORIZED THEM INTO FOUR GROUPS.

SO THOSE

[01:15:01]

ADDITIONALLY, THE I P W G WAS VERY MUCH INTERESTED IN CENTERING DISCUSSIONS AROUND GOAL SETTING AND GOOD FAITH EFFORTS.

AND IN THE SUMMER, SUMMER OF, UH, 2022, WE BROUGHT IN OUR CONSULTANT WHO THEN PROVIDED A BRIEFING BEFORE THE I P W G ON THE DISPARITY STUDY FINDINGS, WHICH ACTUALLY WAS REALLY GOOD TIMING, UM, AS THE WORKING GROUP WAS WORKING TO FINALIZE THEIR RECOMMENDATIONS.

SO, NEXT SLIDE PLEASE.

SO, AT THIS TIME, I'D LIKE TO RECOGNIZE OUR I P W G MEMBERS.

WE HAD 18 REPRESENTATIVES FROM VARIOUS STAKEHOLDER GROUPS THAT REALLY WERE COMMITTED IN, UM, WORKED A THROUGHOUT THE ENTIRE REVIEW PROCESS.

WE HAVE REPRESENTATIVES FROM OUR ADVISORY COMMITTEE AS WELL AS OUR MINORITY TRADE ASSOCIATIONS, OUR LOCAL CHAMBERS, OTHER VARIOUS, UM, STAKEHOLDER GROUPS.

AND WE ALSO HAD, UM, REPRESENTATIVES FROM OUR CERTIFIED FIRMS. I ALSO WANNA RECOGNIZE THE GREAT WORK, UM, BY OUR CITY STAFF.

UM, WANNA GIVE A SHOUT OUT TO OUR S B R TEAM FOR THEIR CONTRIBUTIONS THROUGHOUT THE OVERALL PROCESS, AS WELL AS, UM, THE COMMUNITY ENGAGEMENT DIVISION WITHIN THE COMMUNICATIONS AND PUBLIC INFORMATION OFFICE.

THEY FACILITATE FACILITATED A MAJORITY OF OUR DISCUSSIONS WHERE, WHICH WERE PRETTY LENGTHY AND IN DEPTH.

I ALSO WANNA RECOGNIZE FSDS CAPITAL CONTRACTING AND CENTRAL PROCUREMENT.

BOTH OF THOSE, UH, DIVISIONS, UH, PROVIDED A GREAT OVERVIEW OF THE RESPECTIVE AREAS AS WELL AS THE LAW DEPARTMENT AND, UM, THE EQUITY OFFICE AND OFFICE OF PERFORMANCE MANAGEMENT FOR BEING INVOLVED IN THE PROCESS.

SO WE REALLY COULDN'T DO IT WITHOUT THEM.

SO, TO GIVE YOU A LITTLE BIT MORE INSIGHT IN THEIR REVIEW PROCESS, WE BEGAN MEETING IN AUGUST OF 2021.

UM, THE OVERALL PROCESS SPANNED OVER A YEAR AND A HALF.

WE HAD 30 WORKING GROUP MEETINGS WHERE WE HAD THOSE IN-DEPTH, UM, IN-DEPTH DISCUSSIONS COVERING THOSE FOCUSED AREAS.

AND THEN WITH EVERY MEETING WE HAD A FOLLOW-UP MEETING WHERE WE KIND OF, UH, PROVIDED ANOTHER PRESENTATION OF WHAT WE HEARD THE, UM, I P W G MEMBERS SAY.

SO REALLY CIRCLING BACK TO MAKE SURE THAT WE ACCURATELY, UH, RECORDED THEIR RECOMMENDATIONS AND REGARDING THOSE PERIODIC UPDATES.

IN JANUARY OF 2020, OUR ASSISTANT DIRECTOR, DR.

TALO SALANI, PROVIDED AN UPDATE, UM, BEFORE THE AUDIT AND FINANCE COMMITTEE ON THE DISPARITY STUDY AND, UH, THE I PW G'S PROGRESS AND THE FOLLOWING MONTH, DIRECTOR COMPOST, UH, WAS JOINED BY TWO I P W G, UH, MEMBERS TO PROVIDE A PROGRESS UPDATE DURING A CITY COUNCIL WORK SESSION.

AND LEADING UP TO THE OFFICIAL DISTRIBUTION OF THE FINAL REPORT TO THE COUNCIL, WE HAD ISSUED FOUR, UH, MEMOS TO MAYOR COUNSEL THAT INCLUDED UPDATES ON THE DISPARITY STUDY, BUT ALSO THE WORK THAT WAS BEING PERFORMED BY THE I P W G.

SO DURING THESE DISCUSSIONS, STAFF TEASED OUT THE RECOMMENDATIONS AND WE CAME, UM, FORTH WITH 43 PRELIMINARY RECOMMENDATIONS THAT WE PERFORMED ANALYSIS ON, AND PROVIDED FOLLOW-UP RESPONSES TO THE KIN GROUP AS WELL AS TO OUR ADVISORY COMMITTEE.

WE THEN HAD A KIND OF, WHAT WE CALLED A SECONDARY REVIEW THAT WAS GUIDED BY OUR COMMUNITY ENGAGEMENT DIVISION.

UM, AND FROM THAT, THE I P W G DECIDED TO ADVANCE 20 RECOMMENDATIONS.

AND THEN WHAT WE DID, WE CATEGORIZED THOSE 20 RECOMMENDATIONS.

WE ASSIGNED THEM WITH A SPECIFIC SPECIFICATION, UM, WHICH ARE CURRENT PRACTICE, MINOR MODIFICATION, AND MAJOR MODIFICATION.

SO IF YOU COULD ADVANCE TWO SLIDES.

SO THESE ARE THE FIVE CURRENT PRACTICE RECOMMENDATIONS.

UM, SO WHAT CURRENT PRACTICE MEANS IS WHAT IT'S, YOU KNOW WHAT IT SAYS, IT'S THE CURRENT PRACTICE OF THE CITY.

BUT WHAT, WHAT WE MAY NEED TO DO IS ENHANCE OUR, UM, OUTREACH AND ENGAGEMENT SO THAT THE PUBLIC AND OUR CERTIFIED FIRMS ARE AWARE THAT WE ACTUALLY HAVE THIS AS A CURRENT PRACTICE.

I WANNA FOCUS ON RECOMMENDATION NUMBER 16, UM, UTILIZING SOCIAL MEDIA TO CONNECT PRIMES TO SUBCONTRACTORS AND REALLY HIGHLIGHTING THE PRIME CONTRACTOR.

SO WE DO USE SOCIAL MEDIA, WE HAVE A LINKEDIN PRESENCE AND A FACEBOOK PAGE.

BUT REALLY, UM, IN THE PAST COUPLE OF YEARS, WE'VE ENHANCED THAT AND WE ARE EXPLORING WAYS WHERE WE CAN USE THE TOOL TO NOT ONLY HIGHLIGHT THE BUSINESSES, BUT REALLY CONNECT, UH, THE PRIMES WITH THE SUBPRIMES.

SO THESE ARE OUR CURRENT PRACTICE, UH, RECOMMENDATIONS, WHICH ARE FIVE.

SO MINOR MODIFICATIONS.

WE HAD SIX RECOMMENDATIONS UNDER THIS

[01:20:01]

CATEGORY.

AND WHAT MYER MODIFICATIONS MEANS IS THAT WE COULD IMPLEMENT THESE RECOMMENDATIONS FAIRLY EASILY IF WE JUST ADJUSTED SOME OF OUR POLICIES AND PROCEDURES.

UM, THESE RECOMMENDATIONS DO NOT WARRANT, UH, AN ORDINANCE REVISION OR A PROGRAM RU RULE CHANGE, NOR DOES IT REQUIRE ADDITIONAL FUNDING OR STAFFING.

SO I WANNA FOCUS ON 10 A AND 13, YOU KNOW, OFFERING HANDS-ON ASSISTANCE, UH, TO HELP M B E WBE UNDERSTAND THE BIDDING PROCESS.

SO WE CURRENTLY, UH, PROMOTE AUSTIN FINANCE ONLINE.

THEY ACTUALLY HAVE, UM, DOING BUSINESS WITH THE CITY.

IT'S A VIDEO THAT HIGHLIGHTS HOW YOU CAN DO BUSINESS WITH THE CITY, CUZ IT IS A PRETTY RIGOROUS PROCESS GETTING REGISTERED, UM, YOU KNOW, SUBMITTING BIDS.

THEY OFF ALSO OFFER, UM, YOU KNOW, HOW TO DEVELOP, UH, AN OFFER AND IN 2020.

SO WE PROMOTE THAT CURRENTLY, BUT WE'RE LOOKING AT EXPANDING, UM, THIS EXPANDING WHAT WE PROMOTE.

UM, WE, IN 2021, WE BEGAN CONTRACTING WITH OLOGY, WHICH IS AN ONLINE, UH, PORTAL THAT OFFERS EDUCATIONAL TOOLS FOR SMALL BUSINESSES.

AND WE'VE BEEN MARKETING THAT AT OUR CERTIFIED BUSINESSES, BUT WE REALLY WANNA, UH, TAKE IT UP A NOTCH AND LOOK AT HOW WE CAN CREATE MORE VIDEOS THAT WE CAN SHOWCASE TO REALLY INFORM AND, AND EDUCATE, UH, FIRMS ON THE BIDDING PROCESS.

ALSO, WANNA HIGHLIGHT RECOMMENDATION NUMBER 13, WHICH IS SIMILAR TO RECOMMENDATION, UM, THE RE THE PREVIOUS RECOMMENDATIONS 16.

IT'S, YOU KNOW, HIGHLIGHTING OURS, THE SUCCESSES OF OUR FIRMS AT EVENTS AND PRESENTATIONS.

WE'RE LOOKING AT, UM, ROLLING OUT, UM, KIND OF LIKE A MENTOR, UH, PANEL, UH, WHERE WE FEATURE ALL OF OUR FIRMS SO WE CAN SHARE THEIR EXPERIENCES, THEIR KNOWLEDGE, UM, AND JUST ANY TIPS THAT THEY MAY HAVE FOR NEWER BUSINESSES THAT ARE LOOKING TO GET CERTIFIED AND REALLY RAMP UP THEIR BUSINESS.

UM, RIGHT NOW WE RE RE RELAUNCHED OUR PRE-CERTIFICATION WORKSHOP AND WE HAVE TESTIMONIALS FROM, UM, OUR CERTIFIED BUSINESSES.

WE'VE, AND WE WOVEN THEM INTO THAT PROCESS TO REALLY HIGHLIGHT, UM, THE SUCCESS OF BEING CERTIFIED WITH THE CITY OF AUSTIN.

SO IF YOU CAN ADVANCE TWO MORE SLIDES.

PERFECT.

UM, SO MAJOR MO MAJOR MODIFICATIONS.

WE HAVE 10 RECOMMENDATIONS UNDER THIS.

THESE ARE GONNA BE A LITTLE BIT MORE LENGTHY TO IMPLEMENT.

WHAT MAJOR MODIFICATIONS MEANS IS THAT THEY ACTUALLY DO REQUIRE EITHER AN ORDINANCE REVISION OR A PROGRAM RULE CHANGE.

AND IN SOME CASES THEY MAY NEED ADDITIONAL FUNDING.

SO WE WOULD REQUIRE COUNCIL APPROVAL FOR ADDITIONAL FUNDING FOR STAFF, UM, OR JUST RESOURCES AS A WHOLE.

SO WHERE, WHAT WE'VE FOUND THROUGHOUT THE ENTIRE PROCESS AND WHAT WE HEARD VERY CLEAR IS THROUGH OUR SUPPORTIVE SERVICES SURVEY THAT WE ACTUALLY, UH, LAUNCHED EARLIER THIS YEAR AND THROUGH THIS PROCESS, IS THAT REALLY WHAT THESE FIRMS ARE WANTING ARE ADDITIONAL RESOURCES, UM, TECHNICAL ASSISTANCE, UM, INFORMATION ON LENDING, UM, THE LOAN PROCESS.

ALSO, HOW TO, UM, A LOT OF PEOPLE REALLY WANT MARKETING AND OUTREACH ASSISTANCE SO THEY CAN GET THEIR FIRMS HIGHLIGHTED.

SO, UM, RECOMMENDATIONS SIX, AND IF YOU CAN GO THROUGH THE NEXT SLIDE, SIX THROUGH 12 ARE, UM, WHERE THEY WANT THOSE ADDITIONAL RESOURCES.

SO, SO, UM, WE HEARD THAT PRETTY LOUD AND CLEAR AND WE'RE LOOKING AND EXPLORING POSSIBLE CONTRACTS WITH, UH, SMALL BUSINESSES IN THE AREA THAT CAN PROVIDE THAT EXPERTISE, UH, TO OUR FIRMS. SO IF YOU GO TO THE NEXT SLIDE, PLEASE.

SO REGARDING NEXT STEPS, OUR COUNCIL, OR, OR I'M SORRY, OUR ORDINANCE IS SET TO EXPIRE IN AUGUST TH OF 2023.

SO WE HAVE ALREADY BEGUN THE REVISION PROCESS FOR OUR ORDINANCE, UM, BASED ON THESE RECOMMENDATIONS, BUT ALSO THE RECOMMENDATIONS FROM THE DISPARITY STUDY.

WE HAVE DRAFT COPIES THAT WE'VE WA WALKED THROUGH WITH OUR, UH, ADVISORY COMMITTEE AT THEIR APRIL MEETING.

AND WHAT WE'RE GONNA BE DOING IS WE'RE POSTING IT ONLINE, UM, NEXT MONTH, WHICH IS NEXT WEEK.

AND THEN FROM MAY THROUGH JUNE, WE'LL HAVE A PUBLIC COMMENT PERIOD.

AND THEN, UM, WE'RE EXPECTED TO COME BACK, UM, TO COUNT FOR, TO COUNSEL FOR, UH, CONSIDERATION IN THE SUMMERTIME.

SO, AND THEN AFTER WE HAVE OUR ORDINANCE, WE WILL, THAT WILL THEN GUIDE OUR ADMINISTRATIVE, UH, PROGRAM RULE REVISION PROCESS, WHICH WE SEE THAT OCCURRING, UM, IN THE FALL TIME.

UH, COLLEAGUES, COMMENTS, MAYOR

SO THAT CONCLUDES, UH, THE PRESENTATION.

I REALLY DO WANT TO THANK YOU FOR THE OPPORTUNITY AND ALSO, UM, LEADING THIS EFFORT.

UH, IT WAS A REALLY GOOD EXPERIENCE.

SO THANK YOU AND DIRECTOR CAMP COMPOST.

AND I ARE HERE IF YOU HAVE ANY QUESTIONS.

THANK YOU VERY MUCH.

[01:25:01]

PERS I REALLY APPRECIATE THE PRESENTATION.

UM, AND I DON'T THINK I'VE SEEN A DRAFT OF THAT, UM, INFORMATION YET AND I'M SUPER CURIOUS.

I DON'T KNOW IF I CAN WAIT TILL NEXT WEEK OR GET A, A PEEK AT IT EARLIER.

UM, ONE THING THAT I WANTED TO ASK ABOUT IS, WHEN YOU MENTIONED THE PAYMENT POLICIES, I KNOW ONE, UH, ISSUE THAT HAS BEEN BROUGHT TO MY ATTENTION, YOU KNOW, THROUGH THE YEARS AND WORKING FOR A WOMAN-OWNED BUSINESS MYSELF BEFORE, UM, I WAS ON THE CITY COUNCIL, UM, TRYING TO GET THE SUBCONTRACTORS PAID BACK QUICKER WAS SOMETHING THAT ALWAYS CAME UP.

IT SEEMED LIKE THE FIRMS WERE, YOU KNOW, THE PRIMES WERE GETTING THEIR PAYMENT IN, YOU KNOW, THE STAGES AS THEY COMPLETED THEIR WORK, BUT SOMETIMES THE SUBCONTRACTORS WERE HAVING TO WAIT, YOU KNOW, THREE MONTHS OR LONGER TO BE ABLE TO GET THEIR COMPENSATION FOR THE WORK THAT'S DONE.

HAS THERE BEEN ANY DISCUSSION OF THAT IN THESE, IN THE WORKING GROUP? THERE WAS.

WE ACTUALLY, AND THANK YOU FOR THE QUESTION COUNSEL.

UH, MAYOR PROAM, WE ACTUALLY DID A FULL PRESENTATION FROM OUR FINANCIAL SERVICES DEPARTMENT AS WELL AS OUR PARTNERS IN OUR, UM, PUBLIC WORKS DEPARTMENT REGARDING, UH, THE PAY APPLICATIONS AND ANY, UH, ANY QUICK FIXES WE CAN DO TO INCREASE, UH, OR DECREASE THE TIMELINE FOR PAYMENTS.

UH, ACTUALLY WE DID NOT FIND THAT THERE WAS, UH, A, A LARGE ISSUE WITH THAT, UH, IN TERMS OF IMPACTING A MAJORITY OF OUR SUBS.

UH, IF THERE ARE ISSUES RELATED TO PAYMENTS OR DISCREPANCIES IN THE PAYMENT PROCESS, S AND B R DOES GET INVOLVED.

THERE IS AN ASSIGNED, UH, COUNSELOR, UH, FROM OUR OFFICE FOR EVERY CONTRACT THAT IS LED BY THE CITY THAT HAS OUR PROGRAM ATTACHED TO IT.

SO WE WOULD GET INVOLVED AND TRY TO ASSIST THAT SUBCONTRACTOR.

BUT AS OF RIGHT NOW, THAT PROCESS DIDN'T LEAD TO ANY, ANY IMPROVEMENTS FROM THE WORKING GROUP.

OKAY, THAT'S REALLY HELPFUL.

AND REMIND ME, DOES THE CITY HAVE A PROCESS FOR REACHING OUT TO THE SUBCONTRACTORS TO SEE WHEN THEY GOT PAID? I CAN'T REMEMBER IF THAT'S A STATE PLATFORM OR A CITY PLATFORM.

WE ACTUALLY DO HAVE THAT AND WE'VE ACTUALLY, UM, JUST RECENTLY LAUNCHED AN ELECTRONIC PLATFORM SO THAT FIRMS THAT ARE PAID PRIME FIRMS THAT ARE PAID CAN ENTER THEIR PAYMENT INFORMATION, UH, FOR OUR CERTIFIED VENDORS.

THE CERTIFIED VENDORS ARE THEN ALERTED AND THEY CAN GO IN AND CONFIRM THAT PAYMENT, UH, WITH THE CITY.

THANKS FOR JOGGING MY MEMORY ABOUT THAT.

UM, AND I APPRECIATE THE, THE TALKING ABOUT MANDATORY PRE-BID MEETINGS, CAUSE I KNOW THAT'S A REALLY IMPORTANT WAY THAT SUBCONTRACTORS CAN INTRODUCE THEMSELVES TO PRIME CONTRACTORS.

AND WERE YOU SAYING THERE WAS, UM, THEY WANTED HELP WITH MARKETING OR IS THERE A WAY THAT THE CITY IS TRYING TO HELP SHARE, YOU KNOW, ONE PAGERS THAT THESE COMPANIES PUT TOGETHER? CAN YOU TALK A LITTLE BIT MORE ABOUT WHAT MARKETING ASSISTANCE THEY NEED AND WHAT THE CITY COULD PROVIDE? SURE.

AND I THINK PART OF THE PROCESS THAT WE'RE GONNA WORK THROUGH IS SOME SORT OF A, A SURVEY PROCESS TO SEE WHAT REALLY WORKS FOR THAT PARTICULAR FIRM, WHAT ARE THE NEEDS OF THAT PARTICULAR FIRM, AND KIND OF DO A MANUAL APPROACH.

SO IF THEY WANT TO HAVE A A ONE PAGE WHERE IT A OUTLINES THE SERVICES THAT THEIR FIRM PROVIDES AS WELL AS THEIR CERTIFICATION STATUS, WE CAN DO THAT FOR THEM.

SO WE'RE REALLY WORKING WITH OUR TWO PUBLIC INFORMATION SPECIALISTS THAT ARE EMBEDDED IN S M B R TO SEE HOW WE CAN REACH OUT TO OUR CERTIFIED VENDORS TO SEE SPECIFICALLY WHAT DO THEY NEED AND THEN HOW CAN WE TAILOR SOME OF THOSE REQUESTS.

THAT'S GREAT TO HEAR.

I THINK THAT'S A REALLY CREATIVE SOLUTION.

AND THEN MY LAST QUESTION WOULD BE ON THE LENDING AND LOANS, IS THAT JUST GIVING PEOPLE INFORMATION ABOUT HOW TO GET LOANS OR WHICH BANKS MIGHT BE OPEN TO DOING THAT? OR, OR IS THIS CITY MONEY THAT IS BEING LOANED OUT LIKE GRANTS? I THINK NOW WE'RE GONNA BE LOOKING AT HOW WE CAN FORM PARTNERSHIPS WITH THE AREA BANKS THAT ACTUALLY HAVE SOME CONCERTED EFFORTS WITH SMALL MINORITY AND WOMEN OWNED BUSINESSES.

UH, CDFIS AROUND THE COMMUNITY HAVE ALSO REACHED OUT TO US ABOUT PARTNERSHIPS.

SO I THINK THAT'S THE FIRST THING WE'RE GONNA TACKLE.

NOW.

I THINK THAT THOSE DISCUSSIONS ABOUT HAVING SOME SORT OF A POOL OF MONEY, UH, FOR C I P PROJECTS IN PARTICULAR HAS ALWAYS BEEN, UH, DISCUSSED.

BUT WE ARE, I DON'T KNOW IF WE'RE READY TO LAND THERE YET.

THE FOLKS THAT WANNA WORK AT THOSE DIFFERENT, UH, DEPARTMENTS AND, AND THEIR, AND THEIR PROJECTS.

AND THEN I LIED, I HAVE ONE MORE QUESTION.

HAS THERE BEEN ANY DISCUSSION ABOUT INSURANCE? CUZ I KNOW THAT PROJECT BY PROJECT, SOMETIMES THE INSURANCE REQUIREMENTS CHANGE AND IT CAN BE QUITE COSTLY FOR SOME BIG PROJECTS.

DID THAT TOPIC COME UP IN THE WORKING GROUP AT ALL? IT CAME UP IN THE WORKING GROUP VERY SLIGHTLY.

UM, IT ACTUALLY WAS ONE OF THE TOPICS THAT THE DISPARITY STUDY, UH, NOTED.

AND SO WE'LL WORK WITH OUR PARTNER DEPARTMENTS ABOUT WHAT WE CAN DO TO REDUCE WHERE WE CAN ANY INSURANCE REQUIREMENTS.

IT'S, IT'S REALLY TOUGH, HOWEVER, ESPECIALLY WHEN YOU'RE TALKING ABOUT WORK AT LIKE THE AIRPORT WHERE THOSE INSURANCE REQUIREMENTS ARE JUST HIGH BECAUSE OF THE, OF THE SAFETY REQUIREMENTS THAT WE HAVE, UH, SURROUNDING, UH, THOSE FACILITIES AND AUSTIN ENERGY, WE FALL INTO THAT AS WELL.

ABSOLUTELY.

BUT WE DO HAVE THOSE DISCUSSIONS.

THERE'S, AND OBVIOUSLY PEOPLE NEED TO HAVE INSURANCE.

THEY NEED TO MAKE SURE THEY'RE LIABLE AND PERFORMING GOOD WORK AND TAKING CARE OF THEIR EMPLOYEES.

AND I'M JUST ALSO CURIOUS SOMETIMES IF THERE'S A WAY TO, TO POOL THEM TOGETHER TO MAKE SURE THAT, UM, SMALL BUSINESSES HAVE A CHANCE TO BE COMPETITIVE.

AND, AND I THINK FROM OUR SIDE, IT'S REALLY EDUCATING

[01:30:01]

IT'S LETTING THEM KNOW WHAT THEY'RE GETTING INTO, UH, BEFORE THEY BID ON A PROJECT AND THEN THEY SEE THAT THERE'S A, A LARGE REQUIREMENT FOR SECURITY OR INSURANCE OR WHATEVER THE CASE MAY BE.

MM-HMM.

GREAT.

THANK YOU SO MUCH FOR THE PRESENTATION.

THANK YOU MAYOR PROAM.

UM, I HAVE A COUPLE QUESTIONS.

WAS OTHER, ANYONE ELSE WANNA ASK A QUESTION? UM, THANK YOU.

THIS IS REALLY HELPFUL.

UM, PRESENTATION.

UM, IT LOOKS LIKE THERE ARE SOME THINGS THAT'LL BE ADDRESSED IN THE DRAFT ORDINANCE THAT WERE RECOMMENDED, BUT THAT THERE ARE OTHER THINGS WHERE YOU NEED RESOURCES.

UM, IN THIS PRESENTATION, YOU, YOU SIMPLY SAID YOU NEEDED RESOURCES.

CAN YOU GIVE US A SENSE, UM, MORE OF A SENSE OF WHAT THOSE RESOURCES WOULD BE, BECAUSE IDEALLY WE WOULD BE ADDRESSING THESE ISSUES IN THE BUDGET? SURE.

THANK YOU FOR THAT QUESTION, COUNCIL MEMBER.

SO, UH, WE WERE VERY LUCKY TO RECEIVE A PROGRAM MANAGER POSITION AS PART OF THE FY 23 BUDGET PROCESS.

AND WE'RE IN THE HIRING PROCESS NOW FOR THAT POSITION.

ONCE THAT POSITION IS IN PLACE, THEY WILL HELP US CREATE A FRAMEWORK FOR HOW WE MOVE FORWARD ON VARIOUS SUPPORTIVE SERVICES OPTIONS FOR OUR CERTIFIED VENDORS.

AND I THINK AS WE CREATE THAT FRAMEWORK, IT'LL ALLOW US TO COME BACK TO COUNCIL WITH REQUESTS ON VARIOUS COMPONENTS SUCH AS, UH, A NANO PROTEGE PROGRAM IN PARTICULAR.

THAT WAS SOMETHING THAT WAS IDENTIFIED BY THE WORKING GROUP AS WELL AS BY OUR DISPARITY STUDY CONSULTANT AS A NEED.

AND SO WE HAVE THAT PROGRAM MANAGER LOOK AT WHAT THAT COST WOULD BE BY LOOKING AT OTHER CITIES AROUND TEXAS AS WELL AS AROUND THE COUNTRY, AND SEE WHAT ADDITIONAL SERVICES WE COULD, UH, USE TO, TO FIRM UP THAT MINERAL PROTEGE PROGRAM AND THEN COME BACK TO COUNCIL WITH A PROPOSAL ON, ON WHAT WE NEED.

SO YOU DON'T ANTICIPATE NEEDING, UM, BUDGET RESOURCES, ADDITIONAL BUDGET RESOURCES IN THIS NEXT BUDGET? A AT THIS POINT FOR HER, FOR OUR SUPPORTIVE SERVICES.

WE'RE NOT ASKING FOR ADDITIONAL FUNDING.

ITEM IS TO ITEM NUMBER SEVEN, WHICH IS A BRIEFING ON CAPITAL IMPROVEMENT PROGRAM FINANCIALS.

UM, AND THEN OVERALL, DID YOU WANNA SHARE KIND OF ANY BIG TAKEAWAYS THAT WERE IMPORTANT TO YOU AS DIRECTOR FROM THIS PROCESS? AND THANK YOU.

YES, THANK YOU FOR THE QUESTION.

I THINK THE BIGGEST TAKEAWAY FOR, UH, FOR ME AS THE DIRECTOR OF THE DEPARTMENT WAS THE WORKING GROUP WAS VERY HAPPY WITH THE, UH, RESULTS OF THIS STUDY.

THEY WERE ALSO VERY HAPPY WITH THE OVERALL PERFORMANCE OF THE PROGRAM.

AND I THINK IF YOU LOOK AT THE MAJOR MODIFICATIONS, THE MAJORITY OF THEM WERE CENTERED ON NEW SERVICES THAT THE CITY COULD OFFER, UM, AND NOT MODIFICATIONS TO EXISTING SERVICES.

SO I WAS REALLY PROUD OF THAT EFFORT AND I REALLY PROUD OF THE TEAM THAT CAME TO THE TABLE TO ASSIST THE WORKING GROUP MEMBERS WITH UNDERSTANDING, UH, WHAT WE DO, WHY WE DO IT, AND, AND WHAT AREAS OF IMPROVEMENTS WE CAN MAKE.

SO, THANK YOU.

UM, AND FOR MY COLLEAGUES, I WANNA JUST FLAG THAT IN MAY WE WILL BE TALKING, UM, WITH JAMES SCARBOROUGH, OUR CHIEF PROCUREMENT OFFICER ABOUT THE SMALL BUSINESS, LOCAL PREFERENCE, UM, INITIATIVE THAT I INITIATED WHEN WE APPROVED THE M W B STUDY.

UM, AND THAT IS, UM, ADDITIONAL TO THIS WORK, UM, WILL HELP A SIMILAR GROUP OF FIRMS, BUT IT FOCUSES ON THE PRIME LEVEL, UM, AND IS WILL HELP OUR LOCAL, UM, BUSINESSES GENERALLY INCLUDING OUR M W E PROGRAM.

AND I THINK WE HAVE A HAVE A GOOD PLAN FORWARD AND, AND I'M LOOKING FORWARD TO THAT PRESENTATION IN MAY.

UM, IF THERE ARE NO FURTHER QUESTIONS, THANK YOU BOTH FOR, FOR BEING HERE.

WE APPRECIATE THAT.

UM, OUR NEXT

[7. Briefing on Capital Improvement Program Financials.]

UM, AND THIS IS A, A BRIEFING THAT THE CITY MANAGER'S OFFICE ASKED US TO, TO, UM, HOLD, UM, SO THAT THEY COULD PROVIDE US WITH SOME CRITICAL INFORMATION ABOUT OUR CAPITAL IMPROVEMENT PROGRAM.

UM, WE ARE HOPING TO LIKELY HAVE A SERIES OF THESE DISCUSSIONS IN AUDIT AND FINANCE, UM, OVER THE NEXT SEVERAL MONTHS, UM, MOVING FORWARD, WHETHER IT'S ON THE FINANCIALS OR ON DIFFERENT ASPECTS, UM, WORKING WITH THE CITY MANAGER'S OFFICE TO MAKE SURE THAT, UM, WE HAVE A GOOD LOOK INTO THESE PROGRAMS AND WHERE WE'RE AT.

UH, GOOD MORNING LADIES.

GOOD MORNING COUNCIL MEMBERS.

I'M KIM LAVARIS, UH, DEPUTY CHIEF FINANCIAL OFFICER FROM THE FINANCIAL SERVICES DEPARTMENT.

I ALSO HAVE WITH ME THIS MORNING BELINDA WEAVER, OUR TREASURER AND TINA VAN, WE, OUR CAPITAL BUDGET MANAGER.

SHE'S HERE TO DO SOME PINCH HITTING FOR US IF, UM, DEPENDING ON THE QUESTIONS Y'ALL MIGHT HAVE.

UM, SO WE WANNA THANK YOU FOR THE OPPORTUNITY TO PRESENT TODAY.

UM, I'VE, THERE'S BEEN SOME PRIOR COMMUNICATIONS TO THE FULL COUNCIL REGARDING OUR C I P, UM, PARTICULARLY ON CERTAIN PROJECTS, BUT ALSO, UM, SOME OVERALL PERSPECTIVES.

AND WE WANTED TO TAKE SOME TIME TODAY TO PROVIDE YOU ALL INFORMATION ABOUT THE CURRENT STATE OF OUR CAPITAL IMPROVEMENT PROGRAM.

[01:35:01]

SO I WANNA START THE DAY BY PROVIDING AN OVERVIEW OF THE KEY OBJECTIVES AND TAKEAWAYS FROM THE PRESENTATION.

UM, FIRST YOU'RE, YOU'RE GOING TO HEAR ABOUT WHAT THE IMPACT OF OFF-CYCLE BOND PROGRAMS, CONSTRUCTION MARKET CONDITIONS AND AGGRESSIVE SPENDING PLANS HAVE WHEN IT COMES TO OUR OVERALL PROJECT DELIVERY AS WELL AS OUR FINANCIAL SITUATION.

YOU'RE ALSO GONNA LEARN ABOUT OUR AUTHORIZED BUT NONISSUE VOTER APPROVED BONDS.

RIGHT NOW WE ARE 1.8 BILLION OF AUTHORIZED AND WE'LL PROVIDE ADDITIONAL DETAIL OF WHAT THAT REALLY MEANS LATE IN THE PRESENTATION.

BUT, UM, WITH EACH OF THE CHALLENGES THAT WE ARE IN, WE'RE INCURRING, THE CITY MANAGER HAS, UM, DEFINITELY, UM, TAKEN NOTE OF ITS IMPORTANCE AND HAS TAKEN ACTION BY CREATING CAPITAL DELIVERY SERVICES DEPARTMENT AND ALSO, BUT STAFF WILL ALWAYS CONTINUE TO FOCUS ON COMPLETING EACH OF OUR CURRENT BOND PROGRAMS. SO, UH, FIRST WE'RE GONNA START OUT WITH A C C I P SPENDING OVERVIEW.

WE KNOW THAT, UM, WHEN IT COMES TO THE FINANCIALS AND C I P IN PARTICULAR, UM, THE TERMS CAN GET PRETTY WONKY, .

SO WE WANTED TO MAKE SURE TO PROVIDE A, A REFERENCE SHEET FOR THE COMMUNITY, UM, TO UNDERSTAND WHAT ARE ALL EACH, WHAT DO EACH OF THESE TERMS MEAN AS AS WE WORK THROUGH THIS CONTENT.

UM, SO THIS CHART YOU SEE HERE PROVIDES AN OVERVIEW OF OUR ENTIRE CAPITAL IMPROVEMENT PROGRAM.

THE VAST MAJORITY OF OUR PROGRAM IS DRIVEN BY OUR ENTERPRISE FUNDS, PARTICULARLY AUSTIN ENERGY, AUSTIN WATER AND AVIATION, BUT ALSO OUR VOTER APPROVED BONDS.

UM, YOU ALSO NOTICE HOW SIGNIFICANTLY OUR C I P IS GROWING IN THE COMING YEARS.

A LOT OF THAT IS RELATED TO, UM, THE EXPANSION PLANS AT THE AIRPORT.

UM, THIS SIGNIFICANT GROWTH IN OUR CAPITAL PROGRAM WILL CERTAINLY HAVE AN IMPACT ON STAFF THAT ARE WORKING TO DELIVER ON THESE PROJECTS, BUT IT'LL ALSO HAVE AN IMPACT ON THE CONSULTING AND CONTRACTOR COMMUNITY AS WELL AS OUR CITY'S FINANCIAL PLANNING EFFORTS.

SO AS WE, WE WANTED TO DIG DOWN FROM OUR OVERALL C I P PROGRAM INTO OUR, UH, VOTER APPROVED BOND PROGRAM.

SO THIS SLIDE PROVIDES JUST AN OVERVIEW OF OUR HISTOR.

HISTORICALLY, SINCE 2006, UM, WHAT BOND PROGRAMS HAVE BEEN TAKEN TO THE VOTERS? UH, 2006 WAS A COMPREHENSIVE PLAN.

UM, AT THE TIME WAS THE LARGEST WE HAD EVER DONE.

UM, IN 2010, THAT WAS DURING, UH, UH, THE GREAT RECESSION TIMEFRAME.

WE DID DO A MOBILITY BOND, ABOUT $90 MILLION OFF CYCLE.

WE ALL THEN DID OUR NEXT COMPREHENSIVE BOND PROGRAM IN 2012.

UM, PORTION OF THAT PROGRAM DID FAIL.

AND SO WE WENT BACK TO THE VOTERS IN 2013, UM, TO ASK THEM TO RECONSIDER AT WHICH POINT THEY DID APPROVE.

AND THAT WAS FOR THE HOUSING COMPONENT.

2016 WAS A, A MOBILITY FOCUS PROGRAM.

2018 WAS A COMPREHENSIVE THEN OUR, DEFINITELY OUR LARGEST BOND PROGRAM IN IN OUR HISTORY.

UM, 2020 WAS AN OFF-CYCLE MOBILITY PROGRAM.

AND 2022 IS AN OFF-CYCLE HOUSING FOCUS PROGRAM.

SO WE'RE VERY FORTUNATE THE VOTERS OF AUSTIN HAVE INDICATED THEIR SUPPORT FOR STRONG INVESTMENT IN OUR CAPITAL INFRASTRUCTURE AND OUR FACILITIES.

AS YOU CAN SEE HERE, BETWEEN 2006 AND THROUGH 2022, APPROXIMATELY 3.5 BILLION IN VOTER APPROVED BONDS, ALSO KNOWN AS PUBLIC IMPROVEMENT BONDS HAVE BEEN APPROVED BY THE VOTERS.

THE VAST MAJORITY OF THAT, NEARLY 50% IS RELATED TO MOBILITY AND TRANSPORTATION.

UM, AND THEN FOLLOWED UP BY THAT IS AFFORDABLE HOUSING WITH 720 MILLION OVER TIME.

AND THE REMAINING IS SPLIT OUT, UM, WITH VARIOUS AMOUNTS FOR OUR PUBLIC SAFETY, OUR PARKS, DRAINAGE AND OPEN SPACE LIBRARIES, CULTURAL FACILITIES, AND OUR HEALTH DEPARTMENT.

SO THE THREE AND A HALF BILLION DOLLARS HAS BEEN AUTHORIZED, BUT WE ALSO WANTED TO PROVIDE A, A BREAKDOWN OF WHERE WE ARE IN TERMS OF EXPENSES, ENCUMBRANCES AND BALANCE.

SO EXPENSES, THOSE ARE THE MONEY OUT THE DOOR ENCUMBRANCES ARE FUNDS THAT HAVE BEEN, UM, OBLIGATED TO, UM, VARIOUS CONTRACTS, UM, OR AGREEMENTS.

THEN THE BALANCE IS WHAT FUNDING IS STILL AVAILABLE.

NOW, THE BALANCE DOES NOT MEAN THAT THOSE FUNDS HAVE NOT BEEN ALLOCATED, IT JUST MEANS THEY HAVE NOT BEEN SPENT.

UM, SO AS YOU CAN SEE HERE, UM, AFFORDABLE HOUSING HAS ABOUT 360 MILLION IN REMAINING.

BUT A HUGE PORTION OF THAT THREE 50 WAS FROM THE BOND PROGRAM THAT WAS APPROVED LITERALLY JUST A MATTER OF MONTHS AGO.

UM, WHEN IT COMES TO THE REMAINDER OF OUR ALL BRA PROGRAMS, MOBILITY AND TRANSPORTATION HAS THE LARGEST AMOUNT REMAINING AT $803.6 MILLION.

UM, AND THEN IT'S A, IT'S A SMATTERING OF AMOUNTS.

UM, FROM THERE.

NOW WHEN IT COMES TO OUR LIBRARIES, MUSEUM, AND CULTURAL FACILITIES, THAT DOES LOOK A HUNDRED MILLION DOLLARS DOES, CAN SEEM SIGNIFICANT, BUT IT'S ALSO ALLOCATED BETWEEN JUST A SMALL NUMBER OF PROJECTS.

SO IT'S NOT LIKE IT'S SPREAD OUT AMONG NUMEROUS PROJECTS.

AND THIS DATA IS ALSO THROUGH QUARTER TWO OF FIS OF THE CURRENT FISCAL YEAR.

SO WE'VE,

[01:40:01]

WE WANT, NOW WE WANT TO DIG INTO, UM, THE ACTUAL SPENDING FOR OUR MOST RECENT BOND PROGRAM.

SO 2016 VOTER APPRO VOTERS APPROVED 720 MILLION FOR OUR MOBILITY BOND.

UM, AND YOU CAN SEE THERE'S A, A VERY SIGNIFICANT, UM, UM, SLOPE IN THAT CURVE AS WE LOOK AT SPENDING, UM, IN THE FUTURE YEARS.

UH, WITH ANY BOND PROGRAM, YOU'RE GOING TO SEE A, A, A SIGNIFICANT SLOPE, UM, TOWARDS THE, THE LATTER HALF BECAUSE THERE'S TYPICALLY DESIGN, UM, WORK THAT HAS TO TAKE PLACE IN THE BEGINNING, BUT THE BULK OF YOUR SPENDING WILL TAKE PLACE IN THE CONSTRUCTION PHASES.

HOWEVER, THAT BEING SAID, WE ARE SEEING, UM, GAPS AND SLOWDOWNS IN TERMS OF SPENDING ON OUR VARIOUS BOND PROGRAMS. WE'RE WE'RE SEEING CHALLENGES IN LABOR MARKETS, UM, THE SUPPLY CHAIN AND INFLATION OVER THE YEARS THAT, UM, CAME OUT OF COVID.

SO THAT'S CERTAINLY IMPACTING THINGS.

BUT ALSO AS WE'LL CONTINUE TO TALK ABOUT THE, THE FREQUENCY OF OFF-CYCLE PROGRAMS DOES HAVE AN IMPACT AS WELL.

UM, WITH THE 2016 MOBILITY BOND, UM, IT WAS APPROVED TO BE AN EIGHT YEAR BOND, UM, LIFE CYCLE, BUT WE'RE ACTUALLY NOW PROJECTING THAT IT WILL, UM, TAKE 12 YEARS FOR COMPLETION WITH THE FINAL ISSUANCE OF DEBT TAKING PLACE IN 2028.

FROM THERE WE HAVE OUR 2018 AND OUR, UM, 2020 BOND PROGRAMS IS IN THE NEXT SLIDE.

UM, IT WAS APPROVED TO BE AN EIGHT YEAR BOND.

IT'S CURRENTLY PROJECTED TO TAKE 10 YEARS WITH THE FINAL ISSUANCE OF DEBT TAKING PLACE IN 2028.

UM, IT HAS HAD THE, THE MOST, UH, SLOW START OF THESE PROGRAMS. UM, ONLY 9 MILLION HAS BEEN ISSUED, UM, AS OF YET.

BUT THIS IS A, A CHALLENGING AND, UM, SITUATION.

BUT, UM, LIKE I NOTED THE BEGINNING, UM, WE ARE DEFINITELY TAKE DIGGING INTO THIS, UH, IN DEPTH.

UM, THE CITY MANAGER WAS, UM, VERY, AS SOON AS HE CAME ON BOARD, HE NAMED CAPITAL DELIVERY TO BE ONE OF HIS TOP PRIORITIES, UM, FOR THE ORGANIZATION.

AND IN THAT VEIN, HE CREATED THE CAPITAL DELIVERY SERVICES DEPARTMENT, UM, JUST OVER A, JUST ABOUT A MONTH AGO TO BE SINGULARLY FOCUSED ON OUR CAPITAL PROJECT DELIVERY.

UH, JAMES SNOW IS THE, THE CURRENT DIRECTOR OF THAT DEPARTMENT.

HE IS HERE TO ANSWER ANY QUESTIONS YOU HAVE, BUT I ANTICIPATE THAT THIS PARTICULAR, UM, SUBJECT MATTER IS SOMETHING THAT COULD GENERATE QUITE A BIT OF CONVERSATION THAT THE COMMITTEE MIGHT BE INTERESTED IN HAVING, UM, UH, IN MORE DEPTH IN A FUTURE MEETING.

UM, BUT IN TERMS OF THEIR PRIORITIES, THEY ARE PARTICULARLY FOCUSED ON, UM, SPEED AND DELIVERING PROJECTS.

UM, WORKING TO CUT IN HALF OUR CAPITAL DELIVERY EXECUTION TIME, UM, AND DELIVERING PROCESS IMPROVEMENTS ACROSS THE SYSTEM.

SO IN ADDITION TO OUR, HOLD ON, DOES THE, DO YOUR PROJECTIONS INCLUDE CUTTING IT IN HALF OR DO THEY, YOUR PROJECTIONS ON HOW LONG IT WILL TAKE, DOES THAT FACTOR IN THE CHANGES BEING IMPLEMENTED BY THE CITY MANAGER? Y YES.

SO, UM, THAT'S MR. SNOW IN HIS DEPARTMENT.

THEY WILL BE ACTIVELY PURSUING PROCESS CHANGES TO THAT WILL CUT IN HALF HOW LONG IT TAKES US TO DELIVER ON CAPITAL PROJECTS IN GENERAL.

UM, BUT THEY WILL ALSO BE FOCUSING SIGNIFICANTLY ON OUR, OUR CURRENT BOND PROGRAMS. BUT JAMES IS HERE.

OH, I'VE GOT JESUS.

I WANTED TO BE JAMES.

JUST, OKAY.

UH, SO HERE'S THE, THE, WHAT WE'VE DETERMINED, OR WHAT WE'VE, WE'VE OBSERVED IS THE DEPARTMENTS SUBMIT THEIR, UH, PROJECTIONS OF EXPENDITURES THAT'S UNDER THE GIVEN SYSTEM, BUT THEIR PROJECTIONS WERE ALWAYS MUCH MORE AMBITIOUS THAN THE ACTUAL REALITY.

SO THOSE PROJECTIONS HAVE BEEN SUBMITTED BY, BY, BY THE DIRECTORS AS, AS WE KIND OF ROLL OUT THIS IS WHAT THE PLAN, THE SPENDING PLAN IS.

BUT, UH, UH, UH, JAMES SNOW IS NOW IN CHARGE OF TRYING TO SORT THROUGH THAT TO FIGURE OUT WHAT ARE REALISTIC PROJECTIONS AND THEN TO PUT IN THE PROCESS IMPROVEMENTS IN TO DELIVER THOSE PROJECTS IN A SPEEDER FASHION.

AND I DUNNO WHETHER JAMES WANTS TO ADD TO THAT, BUT HE'S DONE A REALLY GREAT JOB AT LEAST BRINGING SOME ORGANIZING PRINCIPLES TO THIS.

YOU GO BACK A SLIDE REAL QUICK.

WHAT WE DID WAS, WHEN I WAS GIVEN THIS OPPORTUNITY, WHAT WE LOOKED AT WAS WE HAD REPORTS FROM 2004 TO, UH, JUST RECENT ONE THAT WAS DONE IN MARCH.

AND WHAT I DID WITH MY TEAM IS LOOK BACK AND LOOK AT ALL THOSE THINGS.

CAUSE A LOT OF THESE LESSONS WERE LEARNED BUT JUST NOT APPLIED.

SO THESE FOUR THAT WE PUT AS THE PRIORITIES WERE THE, THE ONES THAT WERE MENTIONED THE MOST IN THE REPORTS.

SO AS KIM ALLUDED TO RIGHT NOW, THOSE PROJECTIONS THAT SHE'S PROVIDED DOES NOT SHOW ANY OF THE WORK THAT MY DEPARTMENT'S GONNA DO.

WHAT WE'RE DOING RIGHT NOW IS WE'RE ACTUALLY GOING THROUGH

[01:45:01]

FIRST 2016, THEN 18, THEN 20, AND LOOKING AT THOSE AND FINDING OPPORTUNITIES TO, ONE OF THE KEY THINGS IN HERE IS I'M LOOKING AT, WE PLAN SEQUENTIALLY, BUT WE IMPLEMENT IN PARALLEL.

AND ONE THING IS PROBLEM IS THAT WE ALSO WERE DOING SEQUENTIAL UH, EXECUTION, WHICH SLOWED A LOT OF THINGS UP.

SO WHAT WE'RE TRYING TO DO IS FIND OPPORTUNITIES WHERE WE CAN SAY, HEY, WE COULD DO THESE THREE TASKS AT THE SAME TIME.

WE DON'T HAVE TO WAIT FOR ONE OR THE OTHER HAPPENING.

THE ONE PLACE THAT WE'RE FOCUSING ON FIRST IS THE DESIGN PHASE.

UH, ONE OF THE TI ONE OF THE, THE GOAL I'VE BEEN GIVEN IS THAT IT USUALLY TAKES SEVEN TO NINE YEARS TO, UH, DELIVER A PROJECT WE'RE GONNA DO IN FOUR TO FIVE.

AND WE'RE USING TENANTS THAT ARE BEST INDUSTRY PRACTICES THAT WE'RE LEANING ON SOME EXPERTISE THAT WE LEARN FROM OTHER CITIES ON HOW TO DO THAT.

BUT THE FIRST PLACE WE'RE FOCUSING ON IS THE DESIGN PHASE.

WE'RE LOOKING AT PERMITTING AND ALSO THE WAY THAT WE ACTUALLY DESIGN WORK SO THAT WE CAN TAKE THAT PHASE FROM THREE TO FOUR YEARS DOWN TO 1 1 1 YEAR TO ABOUT 18 MONTHS.

THAT INCLUDES PERMITTING AND ALSO COMING TO Y'ALL FOR THE AUTHORIZATION TO GO INTO CONSTRUCTION.

CONSTRUCTION'S NOT REALLY OUR WEAK POINT RIGHT NOW.

WE'RE DOING CONSTRUCTION ABOUT THREE TO FOUR YEARS.

WHAT IT IS, IS HOW WE SET IT UP.

AND ONE OF THE THINGS THAT, UH, JESUS RELATED TO IS GOING FORWARD, ONE OF THE PROCESS IMPROVEMENTS IS WHEN WE COME TO YOU ALL AND SAY, THIS IS A PROJECT.

IT'S NOT GONNA BE A CONCEPT.

WE'RE GONNA GIVE YOU A SCOPE SCHEDULED BUDGET, WHICH, AND YOU CAN HOLD US ACCOUNTABLE TO SAYING THAT'S HOW WE'RE GONNA DELIVER IT.

AND THAT'S THE BUDGET WE'RE GONNA DO IT WITH.

WHAT WE'VE DONE IN THE PAST IS WE'VE COME WITH CONCEPTS OR IDEAS AND THEY'RE NOT BEEN VETTED OUT TO YOU.

AND THEN WHAT HAPPENS IS, THE FIRST THING YOU SEE IS THAT THE BUDGET GOES, GOES FROM FOUR TO 17 MILLION WIDES, DIFFERENT THINGS LIKE THAT.

AND WE WANNA MAKE SURE WE DO A BETTER JOB WHEN WE COME TO YOU.

SO, UH, WE'RE LOOKING AT ALL THOSE PROPOSALS THAT ARE COMING FORWARD WORKING.

I'M WORKING HAND IN HAND WITH KIM AND HER TEAM TO LOOK AT HOW WE CAN MAKE SURE WE HAVE A CONSISTENCY IN THE WAY WE SPEND AND WAY WE PROJECT AND THE WAY WE DELIVER.

THANK YOU, MR. SNOW AND I, AND I BELIEVE WE'RE SCHEDULED TO HAVE YOU SPEAK TO US IN A, IN A FUTURE MONTH, IF I'M NOT MISTAKEN.

LOOK FORWARD TO THAT IN MORE DETAIL, UM, ABOUT THAT PROCESS.

SO I THINK THAT'LL, THAT'LL BE HELPFUL.

BUT IT SOUNDS LIKE THE PROJECTIONS ARE BEFORE THE WORK OF MR. SNOW.

SO IT'S POSSIBLE, UM, WITH THE INVESTMENTS THAT THE CITY MANAGER'S MAKING, UM, AND THE FOCUS THAT WE CAN ACCELERATE, UM, THE TRAJECTORY.

UM, BUT IT WOULD BE PERHAPS DIFFICULT AT THIS POINT IN TIME TO PREDICT HOW THAT, HOW THAT WOULD, HOW THAT WOULD LOOK.

CORRECT.

OKAY, THANK YOU.

UM, IF YOU WANNA CONTINUE.

THANK YOU, .

SORRY, I THOUGHT THAT WAS A QUICK QUESTION.

SORRY.

NO, NO WORRIES.

UH, SO WE, WE STARTED OUT WITH OUR, OUR VOTER APPROVED DEBT, OUR PUBLIC APPROVED BONDS.

SO NOW WE WANTED TO MOVE ON TO OUR NON-VOTER APPROVED DEBT, UM, WHICH INCLUDES CERTIFICATES OF OBLIGATION AND CONTRACTUAL OBLIGATIONS.

SO, AND BELINDA WILL GO INTO THIS IN A LITTLE BIT MORE DETAIL, BUT WE UTILIZE A, A MECHANISM CALLED A REIMBURSEMENT RESOLUTION THAT ALLOWS US TO APPROPRIATE NOW BUT ISSUE THE DEBT LATER.

AS A RESULT, WE DO HAVE A NUMBER OF CURRENT PROJECTS AND PROGRAMS THAT ARE UNDERWAY THAT HAVE, UH, ARE BACKED BY THE FUTURE ISSUANCE OF OUR THIS NON VOTE APPROVED DEBT.

SO RIGHT NOW, UH, WHEN IT COMES TO THE CERTIFICATES OF OBLIGATION, WE HAVE APPROXIMATELY 250 MILLION.

UM, NOTABLE PROJECTS INCLUDE WALLER CREEK, BUT THAT'S SUPPORTED BY THE WALLER CREEK TURS.

UM, AND THEN, UH, A MIX OF FIRE AND EMS PROJECTS, SOME TRANSPORTATION, SOME BUILDING RENOVATIONS, AND A DOMESTIC VIOLENCE SHELTER.

UM, IN ADDITION TO THE COS WE ALSO HAVE THE CONTRACT CONTRACTUAL OBLIGATIONS WHERE THERE'S APPROXIMATELY 75 MILLION PLUS, UM, THAT TO BE ISSUED.

UH, THE VAST MAJORITY OF THAT IS RELATED TO FLEET AND RELATED EQUIPMENT.

UM, JUST ALSO TO CLARIFY, CONTRACTUAL OBLIGATIONS ARE A MORE SHORT TERM, UM, FORM OF DEBT, A FIVE TO SEVEN YEAR TIMEFRAME.

SO THAT'S WHY YOU'RE ONLY GONNA SEE IT FOR THINGS LIKE FLEET AND EQUIPMENT, UH, UM, TECHNOLOGY TYPES OF THINGS, UM, BECAUSE IT'S RELATED TO THE LIFE OF THE ASSET.

UM, BUT THERE'S ALSO THE HUMAN CAPITAL MANAGEMENT SYSTEM THAT IS, IS FORTHCOMING AS WELL AS OUR REGIONAL RADIO SYSTEM.

UM, BUT IN ADDITION TO THOSE PENDING, UM, ISSUANCES, THERE'S ALSO A NUMBER OF PENDING OPERATIONAL NEEDS THAT COULD UTILIZE CEOS GOING FORWARD.

UM, HAS HAS BEEN DISCUSSED ON BY COUNCIL ON A NUMBER OF OCCASIONS.

UM, WE ARE WORKING ACTIVELY TO MOVE OUT OF LEASE OFFICE AND ADMINISTRATIVE AND WAREHOUSE SPACE AND INTO CITY OWNED SPACE.

UM, WE HAVE DONE CONSIDERABLE, UM, ANALYSIS ON THE COST OF BEING IN LI LEASE SPACE VERSUS OWNED, AND THERE IS SIGNIFICANT SAVINGS ASSOCIATED WITH OWNED VERSUS LEASE SPACE.

UM, IN ADDITION, UH, COUNCIL, UM, PREVIOUSLY APPROVED THE CREATION OF A PUBLIC FACILITIES CORPORATION THAT WAS CREATED TO ACCELERATE DELIVERY OF THESE MAJOR FACILITY TYPES AND FOR LOWER PROJECT COSTS.

BUT SOME OF THOSE PENDING PROJECTS COMING FORWARD INCLUDE NORTHEAST SERVICE CENTER, WHICH WILL PR, UM, SUPPORT OUR AUSTIN RESOURCE RECOVERY AND FLEET SERVICES.

UM, THEY ARE IN DIRE NEED OF FACILITY UPGRADES, UM, AND SPACE EXPANSION.

UM, THERE'S ALSO A RUTHERFORD LANE CAMPUS WHERE

[01:50:01]

WE'RE LOOKING AT CONSOLIDATING OUR PUBLIC SAFETY HEADQUARTERS INTO A SINGLE UM, UM, CAMPUS.

AND THERE'S ALSO A NEED TO LOOK AT REPLACEMENT OF, UH, DOWNTOWN EMS, FIRE AND POLICE STATIONS.

UM, SO THERE'S A, THE LIST IS OF NEEDS IS IS OFTEN LENGTHY.

UM, THE MECHANISMS TO FUND THEM IS HOWEVER NOT AS LENGTHY.

SO THIS POINT, I'M GONNA PASS IT OVER TO BELINDA WEAVER, OUR TREASURER, TO TALK ABOUT OUR TAX RATE AND GENERAL OBLIGATION DEBT.

THANK YOU KIM.

UM, SO JUST FOLLOWING UP ON THE DISCUSSION OF C I P IS HOW IS THE CITY GONNA FUND FOR THE C I P PROJECTS? THAT'S WHERE THE TAX RATE AND GENERAL OBLIGATION DEBT DISCUSSION COMES IN.

SO TO START OFF WITH, UM, WHEN GENERAL OBLIGATION BONDS THAT'S BOTH VOTER APPROVED AND NON-VOTER APPROVED DEBT, UM, ARE ISSUED, THEY ARE SUPPORTED BY THE FULL FAITH AND CREDIT OF THE CITY AND ARE FUNDED THROUGH THE DEBT SERVICE TAX RATE.

AND JUST FOR SOME CONTEXT, UM, THE CITY OF AUSTIN'S PROPERTY TAX RATE HAS THREE COMPONENTS.

THE FIRST IS THE OPERATIONS AND MAINTENANCE TAX RATE, AND THAT FUNDS THE GENERAL FUND.

UM, AND THEN THERE IS THE AUSTIN TRANSIT PARTNERSHIP TAX RATE THAT IS THAT DEDICATED PROPERTY TAX, UM, THAT WAS APPROVED IN THE 2020 TAX RATE ELECTION.

AND FINALLY, THE DEBT SERVICE TAX RATE, WHICH FUNDS THE GENERAL OBLIGATION DEBT SERVICE COMING DUE IN THE FOLLOWING FISCAL YEAR.

AND THEN CONTRACTUAL OBLIGATIONS.

SO THE DEBT SERVICE FISCAL IMPACT, THIS IS JUST A HISTORICAL LOOK AT, UM, THE DEBT SERVICE TAX RATE AND THE TAXPAYER IMPACT FOR THE TYPICAL HOMEOWNER.

AND UM, THE TAKEAWAY FROM THIS REALLY IS THAT THE TAX IMPACT FOR BOND ELECTIONS PRIOR TO 2016 HAVE BEEN REALIZED ALREADY.

AND THAT'S BECAUSE THE MAJORITY OF THE BONDS HAVE ALREADY BEEN ISSUED.

HOWEVER, THE TAX IMPACTS FOR THE 2016, THE 2018, THE 2020 AND THE 2022 BOND PROGRAMS WILL CONTINUE ON INTO FUTURE YEARS.

AND THAT'S BECAUSE THERE'S STILL A SIGNIFICANT AMOUNT OF AUTHORIZED BUT UNINSURED BONDS THAT ARE ASSOCIATED WITH THOSE PROGRAMS. SO JUST, UM, A LITTLE BIT OF INFORMATION ON, UM, GENERAL OBLIGATION DEBT.

THERE ARE THREE TYPES THAT KIM'S, UM, GONE OVER ALREADY.

THERE'S THE VOTER APPROVED PUBLIC IMPROVEMENT BONDS THAT FUND CAPITAL IMPROVEMENT PROJECTS.

UM, THERE ARE THE CERTIFICATES OF OBLIGATION THAT ARE NON-VOTER APPROVED AND THOSE, UM, FUND REAL PROPERTY.

I GENERALLY EQUATE THOSE TO NON MOVEABLE ASSETS LIKE LAND PURCHASES, BUILDINGS, THINGS OF THAT NATURE.

UM, THESE ARE PERSONAL PROPERTY.

I EQUATE THOSE TO LIKE MOVABLE ASSETS AS KIM ALREADY MENTIONED.

UM, FIRETRUCKS, POLICE CARS, THINGS LIKE THAT.

UM, THERE IS CURRENTLY 1.7 BILLION IN OUTSTANDING GENERAL OBLIGATION DEBT AS OF TODAY.

UM, GENERAL OBLIGATION DEBT IS ISSUED ONCE PER YEAR.

IT'S GENERALLY DONE IN THE FALL WHEN WE BRING IT, UH, TO COUNCIL FOR APPROVAL.

AND THIS IS WHERE I'M GONNA JUST MENTION THAT THE CITY DOES UTILIZE THOSE, UM, REIMBURSEMENT RESOLUTIONS WHERE THE CITY APPROPRIATES FUNDS TO PROJECTS WITHOUT HAVING TO ISSUE THAT DEBT UPFRONT.

AND BY DOING THIS, UM, THE CITY DOESN'T HAVE TO PAY INTEREST ON UNUTILIZED BOND PROCEEDS.

AND IN ADDITION TO THAT IT'S JUST FISCALLY PRUDENT CASH MANAGEMENT.

UM, THERE'S ALSO THE NOTATION AGAIN THAT THE GEO DEBT IS BACKED BY THE FULL FAITH AND CREDIT OF THE CITY AND TAXES, BUT THIS DOES ALSO LIST, UM, THE AUTHORIZED BUT UNISSUED TOTALS.

UM, IN ADDITION, AGAIN TO THAT 1.7 BILLION IN OUTSTANDING GEO DEBT THAT WE CURRENTLY HAVE ON OUR BOOKS RIGHT NOW, THERE'S OVER 1.8 BILLION, UM, IN AUTHORIZED BUT UNINSURED VOTER APPROVED DEBT FROM VARIOUS BOND PROGRAMS THAT DATE BACK TO 2006.

YOU CAN SEE THE AMOUNT, UH, REMAINING TO BE ISSUED RELATIVE TO THE BOND PROGRAMS, UM, THAT THEY, UH, WERE APPROVED BY THE VOTERS WITH.

SO AGAIN, THE GRAND TOTAL 1,804,895,000 REMAINING TO BE ISSUED.

SO THIS IS JUST A SNAPSHOT OF THE HISTORICAL PUBLIC IMPROVEMENT BOND ISSUANCES.

UM, SINCE 2016.

AGAIN, THIS IS THAT VOTER APPROVED DEBT AND THIS IS THE AMOUNT THAT HAS ACTUALLY BEEN ISSUED.

AND IF WE WERE TO MAINTAIN PACE, UM, YOU KNOW, OF AVERAGE ISSUANCES OVER SAY THE LAST FOUR YEARS, THAT WOULD EQUATE TO ABOUT 150 MILLION ISSUED PER YEAR AND FOR THE REMAINING 1.8 BILLION AND AUTHORIZED BY AN ISSUE THAT WOULD TAKE ABOUT 12 YEARS TO ISSUE THAT DEBT.

UM, WE COULD LOOK AT IT ALSO FROM THE PERSPECTIVE OF, UM, YOU KNOW, 200 MILLION, WHICH WAS OUR LAST PIB BOND ISSUANCE.

UM, IF WE WERE TO ISSUE ON THAT AMOUNT, UM, IT WOULD TAKE ABOUT NINE YEARS TO ISSUE THE REMAINING 1.8 BILLION.

UM, AND FINALLY, SOME FINANCIAL POLICY AND CREDIT RATING CONSIDERATIONS.

UM, THERE ARE, UM,

[01:55:01]

CERTAIN FINANCIAL POLICIES THAT HAVE BEEN ADOPTED BY COUNCIL IN RELATION TO, UM, TIMING OF BOND BOND ELECTIONS.

UM, THE FIRST IS THAT THERE WOULD BE AN ESTIMATED TWO YEARS OF AUTHORIZED BUT UN ISSUED BONDS REMAINING BEFORE AN ELECTION WOULD BE HELD.

AND ALSO WHEN WE WENT FOR THE ELECTION, THAT BOND ELECTION PROPOSITIONS RECOMMENDED TO THE VOTERS WOULD NOT EXCEED THE CITY'S ABILITY TO ISSUE THOSE BONDS WITHIN A NORMAL SIX YEAR PERIOD.

SO BASED ON THESE POLICIES ALONG WITH THE CURRENT SPENDING PROJECTIONS THAT KIM PREVIOUSLY DISCUSSED, THE EARLIEST IN YOU BOND ELECTION WOULD OCCUR WOULD BE 2026.

AND FINALLY, UM, THOSE CREDIT RATING AGENCY CONSIDERATIONS, UH, WE HAVE LISTED HERE THE CITY'S GEO CREDIT, UH, RATINGS.

WE HAVE S AND P, MOODY'S AND FITCH, THOSE ARE THE THREE MAIN CREDIT RATING AGENCIES.

S AND P HAS THE CITY'S GEO CREDIT AT AAA, WHICH IS THE HIGHEST RATING YOU CAN HAVE.

MOODY'S AND FITCH IS ONE NOTCH LOWER, MOODY'S IS AT AA ONE AND FITCH IS AT AA PLUS.

UM, THE CITY WAS AAA RATED, UH, BY ALL THREE RATING AGENCIES PRIOR TO 2020.

IN 2020.

MOODY'S DOWNGRADED THE CITY FROM AAA TO AA ONE AND FITCH FROM AAA TO AA PLUS IN 2021.

UM, AND ONE REASON NOTED FOR BOTH DOWNGRADES WAS ELEVATED FIXED COSTS AND INCLUDED IN THOSE FIXED COST METRICS IS, UM, DEBT REQUIREMENTS OF THE CITY.

AND THAT IS COUPLED WITH, UM, RETIREMENT BENEFITS AS WELL.

UM, THE CITY'S CURRENT DEBT BALANCES, AGAIN AT THAT 1.7 BILLION, ALONG WITH FUTURE DEBT ISSUANCE PLANS ARE KEY FACTORS IN DETERMINING THE CITY'S DEBT RATING.

SO WE WANNA KEEP THAT IN MIND ALONG WITH THE FACT THAT FUTURE DEBT ISSUANCES MUST BE CAREFULLY MANAGED RELATIVE TO AAA CREDIT STANDARDS AND AAA CREDIT RATINGS FROM ALL AGENCIES IS REALLY THE ULTIMATE GOAL SINCE THAT WILL ULTIMATELY SAVE ON THOSE DEBT COSTS.

AND AGAIN, JUST TO REITERATE WHAT, UH, WAS MENTIONED EARLIER, UM, IN THE PRESENTATION, THE IMPACT OF THESE OFF-CYCLE BOND PROGRAMS ALONG WITH THE CONSTRUCTION MARKETS AND AGGRESSIVE SPENDING PLANTS HAVE KIND OF CULMINATED IN THIS LARGE AUTHORIZED, BUT AN ISSUED VOTER APPROVED BOND BALANCE OF 1.8 BILLION.

AGAIN, THE CITY MANAGER HAS TAKEN ACTION WITH CREATION OF THE CAPITAL, UH, DELIVERY SERVICES DEPARTMENT, UM, WHOSE PRIMARY OBJECTIVES ARE DEVELOPING AND IMPLEMENTING A CONSISTENT APPROACH TO CAPITAL DELIVERY ACROSS THE CITY, ALONG WITH ADOPTING A CONCEPT OF SPEED AND DELIVERING THOSE PROJECTS.

AND FINALLY, JUST, UM, NOTING THAT STAFF WILL CONTINUE TO FOCUS ON COMPLETING, UH, CURRENT BOND PROGRAMS. SO THAT'S THE END OF OUR PRESENTATION.

THERE ARE, ARE IN THE BACKUP, THERE ARE A NUMBER OF, UH, THERE'S AN APPENDIX TO THOSE SLIDES, UH, SOME OF THE ADDITIONAL DETAIL, UM, FOR REFERENCE.

BUT WE'RE AVAILABLE FOR ANY QUESTIONS THAT YOU MAY HAVE.

OH, AND WE HAVE A SPECIAL GUEST, UH, GOOD MORNING COUNCIL MEMBERS, ED VAN NINO, CHIEF FINANCIAL OFFICER.

AND I JUST WANTED TO CLOSE IT OUT BY, UH, THANKING YOU FOR PUTTING THIS ON YOUR AGENDA TO HEAR THIS IMPORTANT INFORMATION, THANKING STAFF FOR PULLING TOGETHER WHAT I THINK WAS A, A REAL COMPREHENSIVE AND, UM, IMPORTANT UPDATE ON OUR CAPITAL PROGRAM.

AND, YOU KNOW, REALLY JUST WANTED TO, TO STRESS WHAT, YOU KNOW, WHAT YOU HEARD ABOUT, YOU KNOW, A LOT OF BOND PROGRAMS IN RECENT YEARS, STARTING IN 2016.

WE'VE ESSENTIALLY HAVE HAD ONE EVERY TWO YEARS THAT'S RESULTED IN A SUBSTANTIAL AMOUNT OF, OF, UH, AUTHORIZED BUT UNINSURED BONDS.

IT IS GONNA TAKE US A WHILE TO WORK THROUGH THAT.

UM, WE DO HAVE A NEW CAPITAL DELIVERY APPROACH THAT WE'RE WORKING ON, WHICH IS GOING TO SPEED UP, BUT THAT STILL IS GONNA TAKE US A LOT.

IT'S GONNA TAKE US A WHILE TO WORK THROUGH THAT.

WE'RE GONNA HAVE TO MANAGE IT PRUDENTLY AGAINST OUR, OUR CREDIT RATINGS AND THOSE METRICS THAT THE CREDIT RATINGS LOOK AT.

UM, AND, YOU KNOW, STAFF, IT'S GONNA BE A WHILE BEFORE STAFF WOULD COME FORWARD TO COUNCILS, YOU KNOW, SEEKING ADDITIONAL VOTER APPROVAL FOR MORE BOND MONEY.

WE GOT A FULL PLATE AND WE NEED SOME TIME TO, TO WORK THROUGH WHAT WE HAVE ON OUR PLATE.

SO, JUST WANTED TO END WITH THAT.

I HAVE IS THAT WE APPROVED THE LIBRARY VISION PLAN THAT SET OUT THE, THE NEEDS OF OUR LIBRARY SYSTEM, INCLUDING MANY OF THEM.

THANK YOU, MR. VINNO, UH, COLLEAGUES, QUESTIONS? UH, COUNCIL MEMBER FEZ, THANK YOU.

AND, AND THANK YOU MR. VINO FOR YOUR COMMENTS THERE AT THE END.

THAT WAS LEADING INTO THE QUESTION I WAS GONNA ASK, YOU KNOW, JUST KNOWING, UM, AND I, AND I REALLY APPRECIATE THE PRESENTATION CUZ IT'S SUPER COMPREHENSIVE AND GIVES US A REALLY GOOD PICTURE OF WHERE WE'RE AT WITH OUR, WITH OUR DEAD AND, YOU KNOW, AND ALSO UNDERSTANDING ALL OF THE FACTORS THAT IMPLICATE OUR, OUR CREDIT RATING AS A CITY.

AND, AND I APPRECIATE THE COMMITMENT FROM THE CITY MANAGER IN THE CAPITAL SERVICES, UH, DELIVERY DEPART DIVISION, UM, AND THE IMPORTANCE OF THAT WORK AND WHAT THAT WILL DO.

CAUSE IT DOES HAVE A, A SIGNIFICANT LONG-TERM IMPACT ON HOW WE'RE ABLE TO DELIVER SERVICES FOR OUR COMMUNITY.

AND SO, YOU KNOW, RECENTLY, IN THE LAST FEW MONTHS, I MEAN, ONE EXAMPLE

[02:00:01]

UM, IT INCLUDES ADDING NEW LIBRARIES ACROSS THE CITY AND EXPANDING CERTAIN LIBRARIES.

BUT ALL OF THAT WOULD, OF COURSE WOULD BE FUNDED THROUGH, UH, A BOND PROPOSAL.

AND SO I GUESS MY QUESTION IS, KNOWING THAT STAFF'S RECOMMENDATION AT THIS POINT IS WAIT UNTIL 2026 BEFORE COMING FORWARD WITH ANOTHER BOND PACKAGE FOR OUR, OUR VOTERS, UM, WHAT WOULD BE THE PROCESS THAT YOU WOULD RECOMMEND TO UNDERTAKE THAT WORK? BECAUSE, I MEAN, LIBRARIES IS, IS ONE, BUT WE SAW THE MAJORITY OF THE UNINSURED BOND DEBT IS RELATED TO THE HOUSING BOND THAT WE JUST APPROVED AND THE MOBILITY BOND THAT, UM, THAT, THAT WE ALSO APPROVED.

BUT KNOWING THAT WE HAVE NEEDS AS A CITY BASIC ESSENTIAL SERVICES, INCLUDING OUR DRAINAGE INFRASTRUCTURE, OUR LIBRARIES, OUR PARKS, HOW, HOW BEST CAN WE BALANCE THE NEEDS, UH, OF OUR SERVICES, AS WELL AS KNOWING THAT WE HAVE, UM, THIS SUBSTANTIAL AMOUNT OF UNUSED, UH, BONDS AT THIS MOMENT.

ALL RIGHT.

THANK YOU, COUNCIL MEMBER.

SO I VISION PLANS LIKE THE, THE LIBRARY, UM, ONE YOU JUST RECENTLY APPROVED.

THEY'RE INCREDIBLY IMPORTANT WHEN IT COMES TO OUR CAPITAL IMPROVEMENT PROGRAM PLANNING PROCESS.

UM, WITHOUT THOSE STRATEGIC EFFORTS AT LOOKING AT OUR FACILITY NEED TO SUPPORT OUR OPERATIONS, IT MAKES IT MUCH HARDER TO DEVELOP OUR FIVE PLUS YEAR CIP P PLAN OVERALL.

UM, THAT BEING SAID, WHEN IT COMES TO THE FUNDING, I KNOW, UH, TINA AND, UM, ALL OF FINANCIAL SERVICES QUITE FRANKLY, BUT TINA'S TEAM IN PARTICULAR IS, IS GOING TO BE LOOKING REALLY CLOSELY AT ALL OF OUR REMAINING FUNDS AMONGST THE DIFFERENT BOND PROGRAMS, BUT AMONGST ALL OF OUR FUNDING SOURCES THAT WE HAVE TO ENSURE THAT WE ARE ALLOCATING THEM AS EFFECTIVELY AS POSSIBLE.

UM, ALSO LOOKING AT WHERE THERE MIGHT BE SOME FUNDING GAPS FOR EXISTING PROJECTS THAT ARE ALREADY ON THE, ON THE BOOKS TO BE COMPLETED.

SO, UM, WE'RE, I THINK IT'S IMPORTANT FOR US TO CONTINUE THROUGH THAT WORK TO BE LOOKING AT, UH, CONTINUE TO DIG IN DEEPER ABOUT OUR CURRENT STATE OF ALL THOSE PRO UM, PROJECTS, UM, BUT THEN ALSO INCORPORATE THAT PLUS THE FUTURE NEEDS INTO OUR C I P PLANNING PROCESS AS A WHOLE.

UM, AND THEN WE'RE GONNA BE ABLE TO COME BACK TO, UM, WITH A, A BETTER, UH, A MUCH MORE COMPREHENSIVE RECOMMENDATION ON HOW WE HANDLE FUNDING EACH OF THESE PROJECTS GOING FORWARD.

UM, SO THAT WE CAN GET OURSELVES BACK ON A MORE, A MORE REGULAR CYCLE ACCORDING TO OUR FINANCIAL POLICIES FOR OUR BOND PROGRAMS, BUT ENSURE THAT WE'RE NOT LEAVING DEPARTMENTS, UM, AND LURCH IN TERMS OF THE FACILITIES TO NEEDED TO SUPPORT THEIR OPERATIONS.

AND WITH THAT, DO YOU PROJECT THE, THE KIND OF THE ASSESSMENT THAT THE DEPARTMENTS ARE PROVIDING THAT WILL INFORM THE CAPITAL IMPROVEMENT PLAN, UH, DELIVERY PLAN? HOW, LIKE, HOW LONG WILL THAT TAKE? ARE Y'ALL PROJECTING THAT PERHAPS BY THE END OF THIS CALENDAR YEAR TO COME BACK TO COUNCIL WITH THAT ASSESSMENT OF THE FUNDING SOURCES TO MEET THE CURRENT NEEDS? OR IS THAT A MUCH LONGER EFFORT? I THINK THERE'S COM PORTIONS OF IT THAT WE CAN COMPLETE SOONER THAN LATER.

UM, BUT LIKE A FULL COMPREHENSIVE REVIEW IS GOING TO TAKE SOME TIME AND I'M HESITANT TO COMMIT TO A, A SPECIFIC TIMEFRAME, BUT I THINK AS WE'RE GOING DEEP INTO BUDGET SEASON, UM, WE'LL, WE'LL DEFINITELY BE LOOKING AT THOSE MOST IMMEDIATE, UM, NEEDS, UH, TO MAKE SURE THAT WE CAN BRING BACK RECOMMENDATIONS ON THAT FRONT.

UM, BUT ALSO THERE'S GONNA BE SIGNIFICANT COLLABORATION WITH JAMES AND HIS CREW, UM, AS THEY'RE WORKING TO, TO MAKE IMPROVEMENTS TO OUR DELIVERY PROCESSES OVERALL.

WE'LL BE PARTNERING WITH HIM TO LOOK AT HOW THAT RELATES TO OUR FINANCES, OUR DEBT ISSUANCES AND SO ON, SO THAT WE CAN HAVE, AGAIN, CONTINUE TO BRING MORE COMPREHENSIVE RECOMMENDATIONS AND INFORMATION TO THIS BODY, UM, AS OPPOSED TO KIND OF ONE OFF, UM, UM, PROJECTS OR SITUATIONS.

HOW THE COST OF LIVING IS GOING UP IN AUSTIN? UM, I CAN PROVIDE A, A GENERAL OVERVIEW.

THANK YOU FOR THAT.

AND COLLEAGUES, I KNOW I'VE, I'VE SPOKEN WITH A COUPLE OF YOU ALL ABOUT, UM, THE CONVERSATIONS THAT MY TEAM HAS BEEN HAVING WITH CITY STAFF AROUND, UM, YOU KNOW, THE FORMATION OF A BOND ADVISORY COMMISSION, WHAT THAT MIGHT LOOK LIKE, TAKING, UNDERSTANDING THAT WE HAVE SIGNIFICANT UNMET NEEDS AND THAT WE'RE A GROWING CITY AND IT'S, YOU KNOW, ON US TO ENSURE THAT WE ARE PROVIDING THE SERVICES AT THE, AT THE RATE AND THE SCALE AND THE RELIABILITY THAT OUR COMMUNITY DESERVES.

UM, WHILE, YOU KNOW, DOING THAT VISIONING PROCESS, UM, WE HAVE TO BE GOOD STEWARDS AS WELL.

SO, UM, ALL THAT TO SAY IS THAT I, I LOOK FORWARD TO THE CONTINUED CONVERSATIONS AND, UM, AND THE INFORMATION THAT YOU'LL BRING BACK TO US.

THANK YOU, MAYOR PROTON, YOU CHAIR.

I HAVE A QUESTION ABOUT THE SCOPING OF SOME OF THESE BOND PROGRAMS. HOW, HOW DO WE BUILD IN THE, YOU KNOW, THE CITY SOMETIMES HAS TO RAISE ITS MINIMUM WAGE AND WE CREATE THESE BOND PROGRAMS WITH CERTAIN EXPECTATIONS OF THE DELIVERY PROCESS.

UM, AND THEN AS THE CITY CHANGES ITS MINIMUM WAGE AND INCREASES IT, HOW DO WE MAKE SURE THAT THOSE CONTRACTS CAN STILL BE IN COMPLIANCE WITH, UM, HOW,

[02:05:01]

I MIGHT ASK, UH, MY COLLEAGUE MR. SNOW TO, TO COME AND JUMP IN AS WELL.

BUT, UM, WITH EACH OF THESE PROJECTS, UM, IN VARIOUS PROGRAMS, THERE ARE PROGRAM PROJECT MANAGERS ASSIGNED TO THEM THAT ARE ACTIVELY LOOKING AT, UM, WHAT IS THE SCOPE, WHAT ARE THE REQUIREMENTS, UM, BOTH FROM AN INTERNAL PERSPECTIVE, UM, AMONGST OUR STAFFING AND OUR POLICIES, PROCEDURES, BUT ALSO EXTERNALLY TO MAKE SURE THAT ALL OF THOSE THINGS ARE TAKEN IN, INTO ACCOUNT AS THEY, AS THEY FURTHER REFINE THE BUDGET AND THE CONTRACTING NEEDS FOR EACH OF THOSE PROJECTS.

UM, AS WITH ANY PROGRAM, IT'S APPROVED AT THE POINT IT'S APPROVED AND WE RECOGNIZE THAT THINGS WILL BE CHANGED, UM, THAT POLICIES OR PROCEDURES MIGHT CHANGE IN THE COMING YEARS AS A RESULT.

IT'S VERY IMPORTANT THAT WE INCLUDE, UM, CONTINGENCY IN EACH OF THE PROJECT BUDGETS, UM, TO ALLOW FOR SOME OF THAT FLEXIBILITY FOR SOME OF THOSE CHANGING, UM, CIRCUMSTANCES.

UM, BUT THERE ARE TIMES WHEN THE CIRCUMSTANCE MAY BE MORE THAN THE CONTINGENCY CAN CAN HANDLE.

UM, SO HERE'S WHERE I WILL BE TAGGING MY COLLEAGUE TO COME IN AND AND ADD IN.

SO YEAH, HE'S BEEN MAKING HIS WAY UP HERE.

, UH, AGAIN, UH, RESPECTFUL OF YOUR TIME.

UH, QUICK ANSWER TO THAT, MARI PROTE IS WHAT WE TRY TO DO IS WE TRY TO BUILD, AS KIM ALLUDED TO CONTINGENCIES AS FAR AS FUNDING TO BE ABLE TO HAVE THE DEXTERITY AND AGILITY.

BUT I'M WORKING WITH, UH, THE PURCHASING DEPARTMENT, ESPECIALLY SEAN WILLETT, AND THE IDEA OF HOW WE LOOK AT CONTRACTUALLY, HOW WE CAN DO THIS.

UH, WE, THERE IS A CHALLENGE THAT WHEN WE MAKE CHANGES ON THE DIOCESE AS FAR AS THE LIVING WAGE, THAT WE HAVE TO GO BACK AND LOOK AT FORMER CONTRACTS AND SEE HOW WE CAN WORK WITH THE PEOPLE AND THEN POSSIBLY REISSUE THEM.

BUT, UH, THAT'S A HAND IN HAND.

SO IN MY DEPARTMENT, I'M WORKING WITH HER ACTUALLY, SHE'S GONNA EMBED A GROUP WITH MY GROUP SO THAT WE CAN HAVE A BACK AND FORTH TALK ABOUT THESE THINGS TO MAKE SURE THAT WE CAN ADDRESS WHAT WE HAVE NOW, BUT IN FUTURE HAVE THE CONTINGENCY AGILITY TO DEAL WITH IT.

THANKS.

CAUSE I THINK ONE OF THESE, DIDN'T IT SAY WE STILL HAVE BONDS TO ISSUE ALL THE WAY BACK FROM 2006? YES, MA'AM.

AND I JUST KNOW THAT, YOU KNOW, THE COST OF RENT AND FOOD HAS GONE UP SO MUCH , AND, AND WHAT WE TRY TO DO IS THERE IS CONTINGENCY IN THERE.

WE'LL WORK WITH THOSE SPONSOR DEPARTMENTS TO FIGURE OUT HOW WE CAN STILL DELIVER ON THE EXPECTATIONS.

AND THEN COME TO YOU AND IF THERE'S ANY CHANGES IN THE EXPECTATIONS, COMMUNICATE TO COUNCIL.

THAT SOUNDS GOOD.

MY NEXT QUESTION'S PROBABLY ALSO FOR YOU, SO DON'T GO TOO FAR.

UM, THERE'S BEEN DISCUSSION OF A SPECIAL PERMITTING TEAM FOR THE VOTER APPROVED BONDS AND CITY PROJECTS.

IS, IS THAT CURRENTLY HAPPENING? YES, I'M WORKING WITH JESUS ON, EXCUSE ME, JOSE, ON THAT.

I ALWAYS DO THAT.

SORRY.

JOSE IS THE, THE NEW DIRECTOR OF, UH, DEVELOPMENT SERVICES.

WE'RE WORKING HAND IN HAND ON THAT.

THAT'S ONE OF THE, UH, FIRST THINGS WE'RE TACKLING IN THIS PROCESS IMPROVEMENT IS HOW WE CAN DO THIS MORE EFFICIENTLY AND EFFECTIVELY.

UH, WE ACTUALLY KICKED OFF THE TEAM LAST WEDNESDAY.

AND, UH, THEN WE'RE ALSO HAVING, SO WE HAVE THE DOERS, AS I PUT IT, THE PEOPLE WHO ARE REALLY INVOLVED IN THE PROCESS WE'RE WORK FLOWING THE WHOLE PROCESS AND LOOKING AT HOW WE CAN STREAMLINE IT.

AND THEN WHAT WE'RE TRYING TO DO AS FAR AS GLOBALLY IS THEN I'M HAVING A, A QUARTERLY MEETING WITH THE SPONSOR DEPARTMENTS TO TELL THEM HOW WE'RE DOING THOSE IMPROVEMENTS SO THEY CAN UNDERSTAND THAT HOW'S THIS GONNA HELP THEM IMPACT THEIR PROJECTS THAT WE'RE TRYING TO DELIVER FOR THEM.

SO IT'S, I'VE BEEN VERY LUCKY THAT BETWEEN WORKING WITH, UH, JOSE ROIG, UH, JOSE MORALES, UH, JOSE JORGE MORALES, JORGE MORALES, AND ALSO, UM, HEY JOSE, UH, YEAH, I KNOW I DO THAT ALL THE TIME.

I APOLOGIZE.

I'LL GET USED TO IT.

UH, AND ALSO WORKING WITH THE WATER UTILITY AS FAR AS HOW WE AS A GROUP CAN FIGURE THIS OUT.

CUZ A LOT OF THOSE, A LOT OF THOSE THINGS ARE PERMITS THAT WE LIE IN EITHER WATERSHED OR AUSTIN WATER THAT WE NEED TO WORK WITH AS FAR AS HOW WE CAN, UH, STREAMLINE IT.

BUT IT'S, YOU KNOW, IT'S A GREAT TEAM.

WE'RE TRYING TO MAKE IT HAPPEN.

THAT'S, THAT'S GOOD TO HEAR.

THAT'S VERY EXCITING.

THAT'S ALL MY QUESTIONS.

CHAIR COUNCILMAN RYAN AL ALTER.

CAN YOU JUST HELP ME UNDERSTAND A SENTENCE YOU HAVE ON SLIDE 23, YOU SAID AN ESTIMATED TWO YEARS OF AUTHORIZED UNINSURED BONDS SHALL REMAIN BEFORE AN ELECTION WILL BE HELD, SHALL REMAIN FOR WHAT? I'M, I'M JUST NOT UNDERSTANDING THAT SENTENCE AND HOW YOU'RE, UH, SO BASICALLY WHEN BELINDA WAS GOING OVER ALL OF OUR, THE AUTHORIZED BUT UNINSURED, SO WE LOOK AT, OKAY, WHEN WE HAVE, UM, SAY WE HAD IN 2006 WE HAD A BOND PROGRAM AROUND, UM, AND THEN WE DID ANOTHER COMPREHENSIVE IN 2012 AT AROUND THE 2010 POINT, WE LOOK AT HOW, WHERE, WHERE ARE THINGS LOOKING IN TERMS OF REMAINING.

WE START LIKE DOING THAT ANALYSIS AND SO THAT IF WE PLAN ON GOING TO HAVE ANOTHER BOND ELECTION IN 2012, THAT WE ARE, UM, WE HAVE TWO YEARS OR LESS FROM THOSE THAT PRIOR THOSE PRIOR PROGRAMS REMAINING TO BE ISSUED.

SO WE'RE ALWAYS, WE'RE LOOKING FORWARD, BUT WE'RE ALSO ALWAYS LOOKING BACK IN TERMS OF OUR ISSUANCES.

AND BECAUSE OUR NORM, WE, WE SAY A TYPICAL PERIOD IS SIX YEARS.

REALLY WHAT YOU'RE SAYING IN THESE TWO SENTENCES IS WE SHOULD ONLY ISSUE

[02:10:01]

BONDS EVERY FOUR YEARS.

NO, NOT ISSUE.

WE'RE TALKING, WE'RE TALKING OR NOT ISSUE.

WE SHOULD ONLY GO, WE, THE POLICY OF GETTING VOTER APPROVED BONDS SHOULDN'T OCCUR ANY FASTER THAN EVERY FOUR YEARS.

UM, REALLY YOU'RE LOOKING AT, AT THAT SIX YEAR TIMEFRAME, BECAUSE HISTORICALLY, BACK IN PRIOR DECADES REALLY IT, UH, A BOND PROGRAM WOULD TYPICALLY TAKE SIX YEARS TO BE COMPLETED, THEREABOUTS.

UM, SO IF YOU DO EVERY SIX YEARS, UM, THEN YOU'RE PROBABLY, BECAUSE WE DON'T ISSUE DEBT UNTIL AFTER THE EXPENDITURES OCCUR, UM, YOU'RE, YOU'RE IN THAT ZONE OF BEING ABLE TO BRING FORWARD A NEW BOND ELECTION, BUT BE ON THAT VERY, THAT DOWNWARD, NEAR THE VERY END OF THE DOWNWARD SLIDE OF ISSUING DEBT FROM PRIOR BOND PROGRAMS. SO IT'S ALL ABOUT TRYING TO KEEP THINGS RELATIVELY SMOOTH IN OUR BOND ISSUANCES SO WE DON'T HAVE HUGE SPIKES AND, AND DROPS YEAR OVER YEAR.

AND HOW DOES YOUR STATEMENT ABOUT WAITING UNTIL 2026 FOR VOTER APPROVED BONDS AFFECT WHAT WE DO FOR CERTIFICATE'S OBLIGATION, CONTRACTUAL OBLIGATION? WHERE DOES THAT FACTOR? SO THE, SO THAT FINANCIAL POLICY IS SPEAKING TO, TYPICALLY TO OUR VOTER APPROVED, UM, BOND ELECTIONS, NOT OUR NON-VOTER APPROVED BOND ELECTIONS.

SO, UM, IT'S, SO THE CERTIFICATES OF OBLIGATION WOULDN'T NECESSARILY PLAY INTO THAT, BUT IF WE WERE TO ISSUE LARGE AMOUNTS OF CERTIFICATES OF OBLIGATION, WOULD THAT IMPACT OUR ABILITY OR WHEN WE'RE LOOKING AT CREDIT RATINGS AND, AND MAKING THE BEST FINANCIAL DECISION ON WHEN TO HAVE GO TO THE VOTERS, WOULD THAT DELAY OR HAVE AN IMPACT IN ANY WAY IN VOTER APPROVED DEBT? WELL, FROM A CREDIT RATING PERSPECTIVE, UM, THEY REVIEW OUR EXISTING DEBT AS A WHOLE, RIGHT? SO IT'S VOTER APPROVED, IT'S NON-VOTER APPROVED.

NOW, WHETHER OR NOT THAT WOULD DELAY, UM, THERE ARE SPECIFIC, UM, PARAMETERS WITHIN STATUTE WHICH IN WHICH CERTIFICATES OF OBLIGATION CAN BE USED.

UM, SO I THINK IT'S THE PREFERENCE OF THE CITY TO GO FORTH TO VOTERS FOR APPROVAL.

THOSE ARE REALLY DONE, UM, IN PARTICULAR SITUATIONS REGARDING CERTIFICATES OF OBLIGATION.

BUT WE'RE ALSO, EVERY YEAR AS WE'RE LOOKING AT, AT ISSUANCE DEBT ISSUANCES, WE'RE, WE'RE JUST LIKE THE CREDIT AGENCIES ARE LOOKING AT OUR FULL DEBT PORTFOLIO, SO ARE WE MM-HMM.

SO WE'RE LOOKING, WE'RE ALWAYS LOOKING TO MAKE SURE THAT WE'RE, UM, BEING VERY STRATEGIC ABOUT OUR ISSUANCES OF CEOS RELATIVE TO SPENDING, BUT ALSO RELATIVE TO OUR OVERALL ISSUANCE.

AND I'M FAIRLY CERTAIN THE ANSWER TO THIS IS NO, BUT THIS HAS ZERO BEARING ON GOING TO THE VOTERS FOR TRE, UH, A TRE ELECT WOULD BE A COM A COMPLETELY SEPARATE CONVERSATION, REVENUE, NOT DEBT.

UM, I WANTED TO GO BACK TO THE SLIDES AND JUST GET A COUPLE OF QUICK CLARIFICATIONS.

UM, SLIDE NUMBER FIVE, YOU HAVE THE C I P SPENDING OVERVIEW AND YOU HAVE THE SECTION FOR OTHER, IS THAT JUST OUR COS AND CONTRACTUAL OBLIGATIONS OR WHAT, WHAT IS FOLLOWING IN THAT BUCKET? OTHER INCLUDES CERTIFICATES OF OBLIGATION, CONTRACTUAL OBLIGATIONS.

UM, YOU MIGHT ALSO HAVE TRANSFERS FROM, UM, GENERAL FUND, UM, OR SUPPORT SERVICES, BASIC LIKE STABILIZATION, ONE TIME TYPE FUNDS.

IT ALSO INCLUDES THINGS LIKE GRANTS.

UM, ALSO TRAN, SOME OF THE UTILITIES WILL ALSO MAKE, UM, TRANSFERS TO FROM THEIR OPERATING BUDGET LIKE WATERSHED.

SO WATERSHED THEY, WHILE THEY HAVE A VERY IMPORTANT CAPITAL PROGRAM, IT'S NOT THE SIZE IS WHAT YOU WOULD SEE LIKE WITH AUSTIN ENERGY, AWESOME.

WATER.

SO THEY'RE NOT SINGLED OUT HERE.

SO OTHER HAS QUITE A MIX IN THERE.

SO I MEAN, JUST LOOKING AT THIS, THERE'S SO MUCH OF THE PLANNED FUTURE THAT IS THE AIRPORT.

UM, AND THEN THERE'S THIS OTHER CATEGORY WHICH IS A BIT OF A BLACK BOX.

SO CAN WE GET SOME MORE DETAIL ON WHAT YOU'RE PLANNING AND PROJECTING AND, AND HOW MUCH MONEY THAT IS? OF COURSE.

YEAH.

UM, I, I DON'T HAVE ALL THAT INFORMATION AT MY FINGERTIPS, BUT WE CAN DEFINITELY GATHER, UM, INFORMATION OKAY.

ON WHAT THE GROWTH IN OTHER IS IN THE FUTURE IS.

BEEN NAILED DOWN ENTIRELY, BUT IT'S GENERALLY BEEN ALLOCATED ACCORDING TO HOW IT WAS COMMUNICATED TO THE VOTERS.

AND, UM, IF IT'S EASIER TO JUST MEET WITH ME OR WHATE, WHATEVER'S THE MOST APPROPRIATE NEXT STEP ON THAT IF WE CAN DO THAT.

AND THEN, UM, ON SLIDE NINE, THE YELLOW PART, IF I'M UNDER STANDING CORRECTLY, THOSE THAT'S AUTHORIZED DEBT THAT HAS NOT BEEN OBLIGATED BUT HAS POTENTIALLY BEEN ALLOCATED BUT NOT NECESSARILY ALLOCATED.

UM, GENERALLY IT HAS BEEN ALLOCATED, UM, OKAY.

FOR EXAMPLE, IN IN ACCORDANCE WITH WHATEVER THE, THE CONTRACTOR, THE VOTERS MIGHT HAVE BEEN.

SO IT MIGHT BE ALLOCATED ON THAT FRONT, BUT IT, UM, THERE MIGHT BE SOME PROJECT SPECIFICS THAT HAVE NOT

[02:15:01]

SO FOR THE NON AFFORDABLE HOUSING, NON MOBILITY STUFF, IF WE WANTED TO DRILL DOWN INTO THAT YELLOW SECTION OF ALLOCATED BUT NOT ALLOCATED AUTHORIZED DEBT, UM, HOW DO WE GET THAT INFORMATION? UM, WE, SO WE CAN PROVIDE THAT FOR SURE.

THERE'S ALSO SOME WEBSITES THAT, UM, TINA AND HER CREW AND MANY OTHERS HAVE WORKED INCREDIBLY HARD ON CREATING FOR FOLKS TO BE ABLE TO DIG INTO, UM, THE CAPITAL PROGRAMS. AND WE CAN SHARE THOSE LINKS, UM, UM, WITH YOU AS WELL.

UM, THOSE ARE PUBLICLY AVAILABLE SITES, UM, BUT IT MIGHT BE VALUABLE FOR US TO JUST TO PROVIDE SEPARATELY SOME ADDITIONAL DETAILS, SOME LISTINGS OF, OF WHAT THE, THE YELLOW REPRESENTS.

I THINK THAT WOULD, THAT WOULD BE HELPFUL.

AND AGAIN, THIS MAY BE, UM, I MAY BE THE ONLY ONE WHO WANTS THIS, BUT, UM, CUZ YOU KNOW, JUST LOOKING, SAY AT THE LIBRARY, THERE'S A LOT OF PROJECTS THAT THEY JUST DON'T HAVE ENOUGH MONEY BECAUSE THE COSTS HAVE GONE UP SO MUCH RELATIVE TO WHAT THEY HAD AND I THINK THEY'RE SHORT $8 MILLION TO FINISH THE LIBRARY PROJECTS.

UM, SO, SO IT'S HELPFUL TO UNDERSTAND WHY THIS MONEY IS NOT BEING SPENT, CUZ I DON'T KNOW THAT IT'S SOLVED BY FIXING THE CONTRACTING PROCESS IF WHAT WE HAVE IS A SHORTFALL OF FUNDS AND, AND THAT'S PART OF THE OVERALL ASSESSMENT THAT I PREVIOUSLY MENTIONED THAT WE'RE DOING TO LOOK AT WHERE WE ARE WITH OUR REMAINING FUNDS, THOSE ALLOCATIONS, UM, WHAT ARE THE PROJECT SCOPES AND, AND ESTIMATED COSTS RELATIVE TO AVAILABLE FUNDING.

UM, AND HAVING TO MAKE POTENTIALLY SOME HARD DECISIONS ABOUT CERTAIN PROJECTS MAY JUST NOT BE ABLE TO HAPPEN BECAUSE OF OVERALL NEEDS.

BUT THAT'S PART OF THAT OVERALL ASSESSMENT THAT WE'RE WORKING ON GOING FORWARD.

UM, SO IT SOUNDS LIKE I'LL NEED TO HAVE ANOTHER, ANOTHER CONVERSATION ABOUT THAT, BUT, BUT IN TERMS OF THE SPENDING DOWN, GOING BACK TO MY EARLIER QUESTION WITH MR. SNOW, THESE PROJECTIONS ARE BEFORE THE CHANGES THAT THE CITY MANAGER HAS HAS IMPLEMENTED.

SO PRESUMABLY WE WOULD GET ON A SLIGHTLY DIFFERENT TRAJECTORY AND IT SOUNDS LIKE AT THIS POINT IN TIME IT WOULD BE, UM, THE PRUDENT THING NOT TO DO A BOND UNTIL 2026, BUT WITHOUT ACTUALLY GOING THROUGH THAT EXERCISE AND, AND REALLY, UM, DIVING INTO THAT OTHER PROCESS, WE CAN'T, WE CAN'T SAY WHAT THAT PROCESS WILL YIELD.

IS THAT A FAIR ASSESSMENT? YES.

UM, CITY MANAGER, DID YOU WANNA ADD ANYTHING? CLOSE THIS OUT, JUST SOME GENERAL COMMENTS.

UH, AND I THOUGHT NO EDGE PROBABLY SAID THAT ALREADY.

UH, ONE IS, UH, WE HAVE A, AN ENORMOUS AMOUNT OF UNINSURED DEBT.

1.8 BILLION IS A LOT OF MONEY.

UH, WHAT HAPPENS WHEN YOU CAN'T RUN A BOND PROGRAM ON A TIMELY UH, CYCLE? THOSE ESTIMATES THAT WERE DONE IN THE, OUT IN THE EARLIER YEARS, BY THE TIME YOU BEGIN TO START IMPLEMENTING, THERE'S NOT A WAY TO ACHIEVE THE OBJECTIVE THAT THE VOTERS AND THE PUBLIC EXPECTED CUZ YOU'VE GOT A PROJECT THAT'S EXPLODED IN TERMS OF COST FIRST POINT.

SECOND POINT IS WE'VE ALLOWED SOMETIMES, AS JAMES ALLUDED TO A FEW MINUTES AGO, WHERE PEOPLE HAVE PUT A WISH NUMBER TOGETHER AND THAT SOMEHOW HAS FOUND ITSELF ONTO A BOND BALLOT.

BUT IT WAS A NUMBER THAT HADN'T BEEN GIVEN A LOT OF THOUGHT TO.

AND WHEN YOU START THINKING THROUGH WHAT IT'S GONNA TAKE YOU TO BUILD THAT PROJECT, WE DIDN'T CROSS ALL THE T'S AND WE DIDN'T DOT ALL THE I'S.

UH, AND THEN THE EXPEDITED PROCESS THAT WE'RE TRYING TO DO WITH THIS CAPITAL IMPROVEMENT OFFICE IS TO TRY TO UNDERSTAND OUR PROCESS IMPROVEMENTS THAT WE HAVE, THAT WE HAVE TO HAVE AS A, AN ORGANIZATION SO THAT WE CAN GET THESE PROJECTS BUILT IN A MORE TIMELY WAY.

I, AND I WOULD DISCOURAGE TO THE DEGREE THAT I'M ABLE TO DISCOURAGE IT OFF CYCLE ELECTIONS, UH, THAT THAT IS, UH, IT'S A PROCESS THAT THAT THAT WILL NOT WORK FOR A CAPITAL PROGRAM THAT YOU WANT TO BE DELIVERED ON TIME AND ON BUDGET.

AND I WOULD WANT A MORE THOUGHTFUL PROCESS FROM OUR STANDPOINT AS AN ADMINISTRATIVE STAFF TO BE ABLE TO HAVE THOUGHTFUL PROCESSES IN TERMS OF HOW WE DEVISE PROJECTS TO GET BUILT AND WHY THEY SHOULD BE A PRIORITY.

CUZ WHAT YOU'RE TRYING TO BUILD IS YOU'RE TRYING TO BUILD A GREAT CITY.

YOU'RE NOT TRYING TO BUILD A FIRE STATION OR A LIBRARY.

THOSE ARE THINGS CERTAINLY THAT YOU'RE TRYING TO DO, BUT WHAT YOU'RE TRYING TO DO IS ADD TO THE QUALITY OF LIFE OF THIS CITY AND THAT HAS TO BE THOUGHTFULLY DONE.

SO I WOULD JUST URGE COUNSEL TO ASSIST US IN ACHIEVING THAT OBJECTIVE.

TO PROPERLY MANAGE THE PROGRAMS AS WELL.

CITY MANAGER GARZA, ANY OTHER COMMENTS OR ANYTHING? I HAVE ONE LAST THOUGHT.

SURE.

UH, WE RECENTLY HAD A HOUSING AND PLANNING COMMITTEE MEETING.

I THINK IT MIGHT HAVE BEEN YESTERDAY.

I GET MY DAYS MIXED UP.

UM, BUT I ALSO WANNA BE MINDFUL OF JUST HOW MUCH PROJECT MANAGEMENT IT TAKES AND HOW MUCH STAFF WE HAVE TO COMPLETE THE TASKS.

WHEN WE GOT THE LIST FOR HOUSING AND PLANNING OF ALL THE DIFFERENT, YOU KNOW, CODE PROPERTIES WE HAD BEEN TALKING ABOUT OVER THE PAST FEW YEARS, THE LIST WAS A LOT LONGER THAN EVEN I REALIZED IT WAS.

UM, SO I WANNA MAKE SURE THAT WE HAVE THE STAFF TO BE ABLE TO DELIVER THEM AND, AND

[02:20:01]

, THANK YOU.

I THINK WE'VE BEEN WORKING TO TRY TO DO THAT IN SOME INSTANCES BUT HAVEN'T NECESSARILY ADDRESSED THAT ACROSS ALL OF THE DIFFERENT, THE DIFFERENT, UM, BONDS.

AND THE CITY IS HIRING AND THE CITY'S HIRING.

LAST ITEM IS TO IDENTIFY ITEMS. THANK YOU ALL FOR THIS WORK AND, AND FOR PUTTING THIS PRESENTATION.

LOTS OF GOOD JOBS HERE.

UM, ALL RIGHT.

SO OUR

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

THIS WILL BE AN ONGOING CONVERSATION I THINK, UM, MOVING FORWARD AND THANK YOU TO THE CITY MANAGER.

UM, MS. STOKES, WE'RE GOING TO TALK ABOUT FUTURE MEETINGS.

YES, WE SHOW, UM, THE LANGUAGE ACCESS FOLLOW UP, UH, PROJECT, WHICH WAS POSTPONED TODAY.

UH, WE WILL BE AT THE MAY MEETING.

THIS IS THE MAY 24TH MEETING.

UM, WE ALSO HAVE, UM, WE'RE SCHEDULED TO DO, UH, AN AUDIT UPDATE, JUST A, A STATUS REPORT BACK ON THE AUSTIN ENERGY VEGETATION MANAGEMENT AUDIT.

UM, THERE LOOKS LIKE THERE'S A BRIEFING ON THE CITY'S RELO RELOCATION ORDINANCE FROM FINANCIAL SERVICES AS WELL AS UH, FINANCIAL POLICY CHANGE FROM FINANCIAL SERVICES AND A BRIEFING I BELIEVE ON LOCAL AND SMALL BUSINESS PROCUREMENT.

UM, THE PREFERENCE PROGRAM.

SO THAT IS WHAT I SHOW FOR NOW.

UM, THERE MAY BE OTHER ITEMS THAT COME UP BETWEEN NOW AND THE, WHEN THE AGENDA POSTS.

I THINK WE WERE ALSO DOING AN AUDIT UPDATE FOR WILDFIRE SINCE IT'S WILDFIRE AWARENESS.

THAT'S RIGHT.

MONTH.

UM, GREAT, THANK YOU.

ANY OTHER ITEMS? GREAT WITH THAT, UM, IT IS 1155 AND WE WILL BE ADJOURNING, UM, COUNCIL MEMBER AL ALTER WILL, WE'LL NEED TO VISIT WHETHER WE NEED TO HAVE A A 12 O'CLOCK END FOR OUR NEXT MEETING AS WELL.

WE'RE SKIPPING JUNE, SO WE NEED TO, TO FIT A LOT OF THINGS IN THERE IN MAY.

THANK YOU VERY MUCH EVERYONE.

AND WITH THAT WE ARE ADJOURNED.