Aug 28, 2024 Audit and Finance Committee

[00:00:03]

LIKE WE NOW HAVE

[CALL TO ORDER]

JOINING ME HERE, COUNCIL MEMBER MCKENZIE KELLY IS REMOTE.

I BELIEVE THE CHAIR COUNCIL MEMBER ALLISON ALTER, WILL BE JOINING US REMOTELY AS WELL.

AND SO, UH, TODAY, UH, I'M, UH, LESLIE POOLE, AND I'M THE VICE CHAIR, SO I'LL BE RUNNING THE MEETING.

WELCOME EVERYONE.

IT IS 9:31 AM IT'S THURS, UH, WEDNESDAY, AUGUST 28TH, AND WE ARE HERE FOR THE AUDIT AND FINANCE COMMITTEE MEETING.

UH, CALL THIS MEETING TO ORDER.

HI.

HELLO.

WE HAVE FIRST OFF, PUBLIC

[Public Communication: General]

WE HAVE ONE SPEAKER, MR. ROBBINS.

HE WILL HAVE THREE MINUTES TO ADDRESS CONCERNS REGARDING ITEMS THAT ARE NOT POSTED ON THIS AGENDA.

GOOD MORNING, MR. ROBBINS.

YOU HAVE THREE MINUTES.

THANK YOU.

YOU BET.

UH, MEMBERS, UH, AT THE LAST COUNCIL MEETING, UH, YOU ASKED THAT CITY STAFF WORKING ON GAS RELATED ISSUES MEET WITH MEMBERS OF THE RESOURCE MANAGEMENT COMMISSION TO DISCUSS THE RATE CASE AND ALSO TO DISCUSS A WAY FORWARD ON THE COMMISSION'S REQUEST TO EXPAND OUR PURVIEW TO ADVISE COUNSEL ON GAS UTILITIES, FOUR MEMBERS OF OUR COMMISSION ATTENDED AN HOUR LONG MEETING WITH SEVERAL CITY STAFF MEMBERS AND ITS OUTSIDE LEGAL COUNSEL ON THIS CASE.

THE MEETING WENT WELL ENOUGH.

THE PROBLEM WAS, AND IS THAT WE WERE FOUR PEOPLE OUT OF ABOUT 218,000 RESIDENTIAL CUSTOMERS.

PUBLIC INPUT ON THIS HUGE RATE INCREASE HAS BEEN LIMITED TO A BARE MINIMUM.

THE PUBLIC HAS ONE CHANCE TO SPEAK TOMORROW AT A HEARING WITH NO TIME CERTAIN, AND THAT UNTIL TODAY WAS SCANTILY PUBLISHED.

I URGE COUNSEL TO SET ANOTHER HEARING, ONE FOR A TIME CERTAIN, AND LET THE PUBLIC, UH, KNOW BETTER WHEN THIS IS.

UH, TEXAS GAS SERVICE ITSELF HAS A LARGE EMAIL LIST OF ITS CUSTOMERS THAT IT CAN USE FOR THIS PURPOSE.

UH, SECOND, UH, WE HAVE NOT YET MET WITH STAFF ON FINDING AGREEMENT ON EXPANDING OUR COMMISSION'S PURVIEW, UH, TO GAS UTILITIES BECAUSE STAFF HAS BEEN BUSY WITH THE CITY BUDGET.

IT IS MY INTENTION, HOWEVER, TO HAVE THIS MEETING BEFORE THE AUDIT COMMITTEE'S NEXT MEETING.

UH, AND DESPITE OUR RESTRICTED PURVIEW, THE RESOURCE MANAGEMENT COMMISSION DOES HAVE SCOPE, UH, ON TO COMMENT ON HOW THE RATE IS STRUCTURED.

UH, COULD YOU CUE THE NEXT SLIDE? NOW, THIS SHOWS, UH, MORE THAN DOUBLING IN RATES IN SIX YEARS.

NEXT SLIDE.

AND WE CAN'T COMMENT ON WHETHER THE DOUBLING IS LEGITIMATE, BUT WE CAN, UH, COMMENT ON HOW THE RATE IS DISTRIBUTED.

SO WE RECOMMENDED FIRST THAT THE CURRENT GARGANTUAN MONTHLY FEE BE CUT IN HALF.

SECOND, UH, THAT A THREE-TIER RATE STRUCTURE BE SET UP WITH PROGRESSIVE TIERS CHARGING MORE FOR INCREASED CONSUMPTION, SIMILAR TO WHAT THERE IS FOR AUSTIN ENERGY AND AUSTIN WATER.

AND THIRD, THE, THAT THE UNEXPLAINED AND MISGUIDED PROPOSAL BY THE UTILITY TO HAVE TWO ALTERNATIVE RESIDENTIAL RATES BE DISMISSED.

REGARDING THE RATES THEMSELVES, I CAN EXPRESS MY OWN OPINION.

UH, THE PROPOSED RATE WILL CREATE 105% INCREASE SINCE 2019.

STRATEGIES TO REDUCE THIS RATE, UH, WOULD INCLUDE REDUCTION OF THE RATE OF RETURN CHARGING, HIGHER CAPITAL RECOVERY FEES, DISALLOWING FRIVOLOUS CAPITAL COSTS THAT THE COUNCIL NEVER APPROVED, AND ELIMINATING THE RATE DECREASES FOR LARGE CUSTOMERS.

THANK YOU.

THANKS MR. ROBBINS.

UM, AND JUST FOR THE PUBLIC'S BENEFIT, THE TOPIC THAT MR. ROBS IS SPEAKING ON RELATES TO THE CITY OF AUSTIN'S, UM, UH, RATE CASE IN FRONT OF, ACTUALLY, IT'S A CONSORTIUM OF, UH, ENTITIES THAT THE CITY OF AUSTIN IS ONE OF IN FRONT OF THE TEXAS RAILROAD COMMISSION.

UM, AND SO WE HAVE LIMITED ABILITIES TO, TO, UH, SCOPE THINGS OUT, BUT I VERY MUCH APPRECIATE

[00:05:01]

I SEE THAT OUR CHAIR HAS JOINED US.

ALLISON ALTER IS REMOTE, AND ALSO COUNCIL MEMBER VANESSA FUENTES IS WITH US TODAY.

WE HAVE NO OTHER SPEAKERS FROM THE PUBLIC HERE TODAY, SO WE'LL MOVE ON

[1. Approve the minutes of the Audit and Finance Committee meeting of July 23, 2024.]

DO I HAVE A MOTION TO APPROVE THE MINUTES OF THE AUDIT AND FINANCE COMMITTEE MEETING OF, UH, JULY 23RD, 2024? THANK YOU.

COUNCIL MEMBER FUENTES WITH A SECOND FROM COUNCIL MEMBER RYAN ALTER.

ARE THERE ANY CHANGES OR CORRECTIONS TO THESE MINUTES? UH, ARE THERE ANY OBJECTIONS TO APPROVING THEM? HEARING NONE THESE MEETING MINUTES FOR THE LAST MEETING ARE APPROVED UNANIMOUSLY.

OUR NEXT ITEM NUMBER

[2. Recommendations for appointment of a member to the Austin Convention Enterprises Board.]

AND, UH, WHO DO WE HAVE HERE TO DISCUSS THIS? DI? YES, MS. MS. THOMAS.

UH, DIANA THOMAS, DEPUTY CFO.

UM, WE WOULD LIKE TO APPOINT MARGARET SHAW TO THIS POSITION.

MARGARET IS AN EMPLOYEE WITH THE CITY OF BOSTON'S, UH, FINANCIAL SERVICES DEPARTMENT IN OUR REDEVELOPMENT SERVICES DIVISION.

UM, MARGARET WAS HOPING TO JOIN US REMOTELY TODAY.

SHE'S NOT, SHE'S FEELING A LITTLE BIT UNDER THE WEATHER.

UM, BUT I DON'T SEE HER ONLINE.

I KNOW THAT SHE HAD INDICATED THAT SHE WAS AVAILABLE AS SHE ABLE TO JOIN US ONLINE.

YOU WERE ATTEMPTING TO CONNECT WITH HER, BUT OKAY.

NOT, HASN'T BEEN SUCCESSFUL.

ALRIGHT.

DO I HAVE ANY, UM, ANY DISCUSSION ON THIS? IS THERE A MOTION TO APPROVE THIS ITEM TO APPOINT MARGARET SHAW? THANK YOU.

UH, CHAIR ALLISON ALTER MAKES THAT MOTION.

AND COUNCIL MEMBER MCKENZIE KELLY IS A SECOND.

IS THERE ANY ADDITIONAL CONVERSATION ON THIS? UM, ARE THERE ANY OBJECTIONS TO APPOINTING MARGARET SHAW TO THE UH, AUSTIN CONVENTION CENTER BOARD? HEARING NONE, THIS IS UNANIMOUSLY APPROVED.

THANK YOU EVERYONE.

ITEM NUMBER THREE,

[3. Boards and Commissions Special Request Report.]

THIS WAS REQUESTED BY COUNCIL MEMBER RYAN ALTER AND COUNCIL MEMBER ALLISON ALTER.

DO WE HAVE A PRESENTATION ON THIS ITEM? WE DO.

IS THIS KELSEY THOMPSON? YES.

WELCOME.

HI, GOOD MORNING.

MY NAME IS KELSEY THOMPSON.

I WAS THE MANAGER OF THIS SPECIAL REQUEST, WHICH WE ORIGINALLY PUBLISHED IN APRIL OF 2023.

AT THE TIME THAT WE WERE DOING THIS WORK, THERE WERE 93 BOARDS AND COMMISSIONS ON THE CITY'S WEBSITE.

WE DETERMINED TO FOCUS SPECIFICALLY ON THE 55 THAT ARE OUTLINED IN CITY CODE, AND WE LOOKED AT VACANCIES.

THREE MONTHS ARE LONGER AND OTHER ATTENDANCE ISSUES, MEETINGS AND CANCELLATIONS RECOMMENDATIONS AND HOW BOARD MEMBERS COMMUNICATE WITH COUNCIL.

I'LL JUST FOCUS ON A COUPLE OF THESE, BUT IF THERE'S ANY MORE DETAIL YOU'D LIKE ME TO GO INTO, MORE THAN HAPPY TO DO SO.

SO FOR VACANCIES, UM, FROM NOVEMBER, 2021 TO DECEMBER, 2022, WE SAW THAT THERE WAS A 5% AVERAGE MONTHLY VACANCY RATE.

AND WHILE THAT'S RELATIVELY LOW, WE DID SEE THAT THERE WERE 55 SEATS THAT WERE VACANT FOR MORE THAN THREE MONTHS.

AND THE AVERAGE LENGTH OF TIME THOSE SEATS WERE VACANT WAS SIX MONTHS.

AND THERE WERE SIX BOARDS THAT HAD MULTIPLE OF THESE LONG-TERM VACANCIES, WHICH CAN MAKE IT MORE DIFFICULT FOR THEM TO MEET QUORUM FOR MEETINGS.

THE BOARDS THAT ARE CODIFIED, THEY'RE REQUIRED TO MEET AT LEAST QUARTERLY.

MOST BOARDS SAY THAT THEY'LL MEET MONTHLY, AND WE SAW THAT ON AVERAGE BETWEEN 2021 AND 2022, THEY HAD ABOUT NINE MEETINGS PER YEAR WITH A CANCELLATION RATE OF 27 TO 28%.

THERE WERE FOUR BOARDS IN EACH YEAR THAT DID NOT MEET THAT, UH, REQUIREMENT TO MEET QUARTERLY FOR RECOMMENDATIONS.

OVER THE YEARS THAT WE REVIEWED, THE BOARDS ISSUED 414, THERE WERE 15 THAT SUBMITTED NO RECOMMENDATIONS AND 99% OF THE RECOMMENDATIONS WE DETERMINED TO BE WITHIN SCOPE OF THE BOARD'S BYLAWS.

WE ALSO DID A, A LITTLE BIT OF PEER CITY ANALYSIS.

WE LOOKED AT HOW MANY BOARDS AUSTIN HAS COMPARED TO SEVERAL OTHER CITIES, AND WE DID SEE THAT THERE WERE TWO BOARDS THAT HAD A PROCESS TO PERIODICALLY REVIEW THE BOARDS AND DETERMINE IF THEY SHOULD REMAIN ACTIVE OR NOT.

AND THAT CONCLUDES MY PRESENTATION.

I'M HAPPY TO TAKE ANY QUESTIONS.

THAT'S GREAT.

WHAT, UH, QUESTIONS MIGHT WE HAVE? YES, COUNCIL MEMBER RYAN AL ALTER.

UH, THANK YOU VERY MUCH, VICE CHAIR, AND I APPRECIATE THE, THE WORK Y'ALL DID ON THIS.

I KNOW THIS STARTED AS A SPECIAL REQUEST FROM COUNCIL MEMBER HARBOR MADISON AND COUNCIL MEMBER VELA.

SO REALLY APPRECIATE Y'ALL COMING FORWARD.

I WAS CURIOUS JUST TO ADD A LITTLE CONTEXT TO THIS, IF THE CLERK'S OFFICE IS PRESENT AND COULD JUST ALSO GIVE A LITTLE INFORMATION ON KIND OF THEIR SUPPORT ROLE AND HOW MUCH TIME THAT TAKES IN OUR BOARDS AND COMMISSIONS PROCESS.

ABSOLUTELY.

THANK YOU.

I'M STEPHANIE HALL.

I'M THE ASSISTANT CITY CLERK IN THE CLERK'S OFFICE, AND I'VE KIND OF COORDINATE FOR THE BOARDS AND COMMISSIONS.

[00:10:01]

I DON'T KNOW IF YOU WANTED ME TO GO THROUGH WITH THAT, BUT I CAN JUST HIGHLIGHT SOME OF THE THINGS THAT YOU KIND OF ADDRESSED JUST TO THE PRESENTATION THAT WE HAD WAS JUST TO RESPOND TO SOME OF THE QUESTIONS THAT WERE ASKED FROM OUR PERSPECTIVE, HOW WE, UM, HOW WE SEE THOSE.

THE, THE ONE ABOUT THE ATTENDANCE VIOLATIONS AND THE VACANCIES ARE, OUR GOAL IS TO WORK REALLY CLOSELY WITH COUNCIL OFFICES WHEN THOSE VIOLATIONS HAPPEN IN THOSE VACANCIES.

SO WE SEND OUT REPORTS MONTHLY ABOUT THAT, ABOUT WHAT, WHAT IS OUTSTANDING, WHAT WE MAY NEED.

UM, WE DO FIND THAT SOMETIMES FILLING THOSE POSITIONS CAN BE A LITTLE BIT CHALLENGING BECAUSE THE APPLICANT POOL MIGHT NOT BE THERE.

IT MIGHT BE DIFFICULT TO FIND QUALIFIED OR INTERESTED APPLICANTS.

WE DO TYPICALLY NOTICE AN INCREASE IN APPLICATION SUBMISSIONS WHEN A COUNCIL OFFICE WERE TO REACH OUT TO THE COMMUNITY AND SAY WE'D LIKE SOME MORE APPLICANTS.

SO WE HAVE NOTICED THAT.

AND THEN WITH THE TURNOVER OF, UH, THESE TERMS IN FEBRUARY, WE ARE GOING TO BE WORKING WITH THE CORP, I WANTED TO SAY CPIO, BUT THE CORPORATE PUBLIC INFORMATION OFFICE TO KIND OF GET THAT OUT AND GET SOME, SOME MORE INTEREST TO TALK ABOUT THE ATTENDANCE REQUIREMENTS IN CITY CODE.

THEY'RE EXTREMELY IMPORTANT TO ENSURE THAT BOARDS AND COMMISSIONS MEET TOGETHER.

THEY HAVE THE ABILITY AND, AND A QUORUM TO MEET, BUT IT CAN BE QUITE CHALLENGING TO TRACK THAT ATTENDANCE, UH, WHEN CONSIDERING CANCELLATIONS AND WHEN CONSIDERING SPECIAL CALL MEETINGS.

AND THERE'S ALSO KIND OF A GRACE PERIOD TO REPORT THAT ATTENDANCE.

IT CAN BE DIFFICULT FOR A LIAISON TO KEEP TRACK OF ALL THAT AND GET CORRECTLY TO US.

THE OTHER THING IS, IS DEPENDENT ON THESE STAFF LIAISONS WHO HAVE OTHER ROLES WITHIN THEIR DEPARTMENT.

WE DO TRY VARIOUS METHODS IN WHICH TO ENCOURAGE THAT REPORTING.

WE SEND OUT REMINDERS, ET CETERA.

AND THIS IS SOMETHING THAT'S ON OUR RADAR.

AND WE HAVE INCLUDED IN OUR, UH, PREFERRED QUALIFICATIONS FOR A REQUISITION THAT WE'RE WORKING ON FOR A NEW AGENDA PROJECT REGARDING THE MEETING CANCELLATION AND FREQUENCIES.

WHAT WE FIND IS THAT MOST BOARDS AND COMMISSIONS ACTUALLY MEET MONTHLY, EVEN THOUGH CODE REQUIRES THEM TO MEET QUARTERLY, THEY PREFER A MONTHLY MEETING.

AND THAT IF THERE IS A CANCELLATION, IT'S USUALLY DUE TO A LACK OF QUORUM.

THAT'S PROBABLY THE MOST COMMON.

AND THEN ADDITIONALLY THERE MIGHT BE BECAUSE THEY DON'T HAVE ANY PRESSING ITEMS, THERE ARE A FEW OTHER THINGS THAT OCCASIONALLY HAPPEN.

WE DO NOTIFY A MAYOR AND COUNCIL IF A BORDER COMMISSION IS CONTINUALLY, CONSISTENTLY NOT MEETING.

AND THEN WE CERTAINLY NOTIFY THE AUDIT AND FINANCE COMMITTEE IF SOMEONE HAS REACHED SIX MONTHS OF NOT MEETING.

THAT'S VERY RARE, BUT IT HAS HAPPENED AND WE BRING THAT UP AND THEN THE AUDIT AND FINANCE COMMITTEE HAS AN OPPORTUNITY TO DISCUSS WHETHER THEY SHOULD CONTINUE THAT BOARD OR NOT.

UH, WHEN TALKING ABOUT THE SCOPE OF BOARDS AND COMMISSIONS AND THEIR RECOMMENDATIONS, I THINK THAT'S SOMETHING THAT WE NOTICE IN OUR OFFICE THAT STANDS OUT.

UH, SOMETHING THAT WAS NOTED IN THE REPORT WHEN THEY WERE TALKING ABOUT THE RECOMMENDATIONS, THE RECOMMENDATIONS THAT WERE SUBMITTED, IF THEY'RE WITHIN OR WITHOUT OF THE SCOPE.

I THINK THAT'S REALLY TRICKY WHEN TALKING ABOUT THE BYLAWS.

SO MOST OF THE BOARDS AND COMMISSIONS ARE ADVISORY BYLAWS AND RECOMMENDATIONS IS HOW THEY TALK TO COUNCIL AND HOW THEY COMMUNICATE.

BUT AS MENTIONED IN THE REPORT, THE BYLAWS ARE NOT SUPER CONSISTENT.

THERE WAS A STANDARD BYLAW TEMPLATE THAT WAS USED WHEN WE TRANSITIONED TO THE TEN ONE SYSTEM.

SO EVERYONE HAS THAT STANDARD, BUT THERE'S NOT NECESSARILY A STANDARD FOR HOW THEIR SCOPE OR THEIR MISSION IS OUTLINED.

AND THAT CAN CAUSE A LITTLE BIT OF CONFUSION.

UH, THERE, UH, SOME OTHER QUESTIONS THAT WE SAW WERE HOW DO THEY COMMUNICATE WITH COUNCIL? WE, AS THE OFFICE CITY CLERK, ENCOURAGE BOARDING COMMISSION MEMBERS TO COMMUNICATE WITH THEIR COUNCIL OFFICES TO LET THEM KNOW WHAT'S GOING ON IN THE BOARDS OR COMMISSION RAISE AREAS OF CONCERN.

SO THAT IS SOMETHING THAT WE PROACTIVELY COULD ENCOURAGE THE MEMBERS TO DO.

SOME OF THE CHALLENGES THAT THE AUDITORS REPORT NOTED IN THE DATA COLLECTION IS SOME OF THE THINGS THAT WE ALSO KNOW.

ONE OF THE BIGGEST THINGS IS SOME OF THE INFORMATION TO GET FROM STAFF LIAISONS CAN BE DIFFICULT OR CHALLENGING.

THERE'S ALSO A REALLY HIGH TURNOVER IN THE STAFF LIAISON.

SOMETIMES THAT INFORMATION IS DELAYED, IT'S NON-EXISTENT OR IT'S JUST INCONSISTENT.

THIS PAST YEAR, THE CLERK'S OFFICE HAS HIRED THREE POSITIONS, FULL-TIME POSITIONS IN OUR OFFICE TO BE STAFF LIAISONS FOR ABOUT 14 COMMISSIONS.

WE'RE REALLY OPTIMISTIC OF THIS SO FAR.

WE'VE HAD SOME REALLY GOOD FEEDBACK.

THERE'S BEEN SOME HURDLES OF COURSE, BUT WE'RE HOPING TO STREAMLINE THAT PROCESS AND DEVELOP SOME MANAGEMENT SYSTEMS FOR INCLUDING ATTENDANCE TRACKING THAT MIGHT BE MORE BENEFICIAL.

AND THEN COUNCIL MEMBER, YOU HAD MENTIONED, UH, HOW MUCH TIME AND SUPPORT ARE WE OFFERING JUST AS SOME NUMBERS TO KIND OF KEEP IN MIND.

UH, I'M THE ASSISTANT CITY CLERK.

I SPEND ABOUT 50% OF MY TIME WORKING ON BOARDS AND COMMISSIONS.

WE ALSO HAVE A FULL-TIME PROGRAM COORDINATOR IN OFFICE.

WE HAVE TWO CUSTOMER SOLUTIONS COORDINATORS.

THEY'RE ABOUT 70% OF TIME DOING POSTINGS AND THEY PROVIDE TRAINING.

AND THEN WE HAVE THE THREE FULL-TIME BUSINESS PROCESS SPECIALISTS.

I DID PULL UP THE STAFF LIAISON ROSTER.

THIS IS, THIS CHANGES BECAUSE OF THE HIGH TURNOVER, BUT THERE'S ABOUT 95 STAFF LIAISONS THROUGHOUT ALL OF THE DEPARTMENTS AND THEN 51 EXECUTIVE LIAISONS.

OKAY.

THAT'S, YES.

THAT'S QUITE A LOT OF SUPPORT.

.

WELL, AND, AND IT IS A LOT.

AND THEN I, YOU KNOW, WHEN I WAS REVIEWING THIS MATERIAL, IT STUCK OUT TO ME, WHEN YOU START ADDING UP THE NUMBER OF BOARDS AND COMMISSIONS, WE HAVE THE NUMBER OF APPOINTMENTS THERE.

IT AMOUNTS TO ALMOST A THOUSAND PEOPLE WHEN FULLY, UH, FULLY APPOINTED.

AND THAT

[00:15:01]

BUT, YOU KNOW, WHEN I CAME TO OFFICE AND WAS TRYING TO MAKE SOME OF THESE, THESE APPOINTMENTS, IT, IT STRUCK ME AS, YOU KNOW, ARE WE, ARE THESE BOARDS AND COMMISSIONS STILL ACTIVE IN THEIR INITIAL ROLE? YOU KNOW HOW YOU MENTIONED ABOUT THE, SOME OF THE OTHER CITIES LOOK AT, UH, WHETHER IT'S LIKE A SUNSET PROCESS OR AN OCCASIONAL LOOK AT, ARE THESE BOARDS AND COMMISSIONS STILL NEEDED OR, OR SERVING THEIR ORIGINAL PURPOSE? AND I THINK THAT IS SOMETHING THAT I WOULD BE INTERESTED IN EXPLORING TO FIGURE OUT, YOU KNOW, IS THE SCOPE.

WE, WE'VE HAD THE DISCUSSION WITH THE RESOURCE MANAGEMENT COMMISSION HERE.

WHAT, WHAT IS THEIR PROPER SCOPE? UH, SHOULD, ARE THERE OVERLAPPING SCOPES AND MAYBE TO HELP AVOID SOME OF THESE LACK OF QUORUM ISSUES? SHOULD TWO BOARDS OR COMMISSIONS, UH, BE MERGED INTO ONE? UH, I JUST THINK IT WOULD, IT WOULD BEHOOVE US TO HELP WITH SOME OF THE ADMINISTRATIVE ISSUES AS WELL AS, YOU KNOW, THE, THE, THE LACK OF QUORUM THAT WE DO UNFORTUNATELY SEE AND, AND THAT STAFF TIME THAT GOES, UH, WASTED.

AND SO, UH, I DON'T KNOW WHAT, WHAT THE RIGHT ANSWER IS.

I DON'T HAVE A, A, YOU KNOW, A SET AGENDA HERE TODAY, BUT I DID WANT TO HAVE THIS DISCUSSION TO SEE, UH, IF THIS IS SOMETHING THAT MY COLLEAGUES AND AND THE COUNCIL BE INTERESTED IN EXPLORING AND JUST ARE OUR BOARDS AND COMMISSIONS FUNCTIONING LIKE WE WOULD LIKE THEM TO DO? OR SHOULD WE, UH, MAYBE TWEAK HERE AND THERE TO MAKE 'EM BETTER SERVE AND, AND FULFILL THEIR ROLE AS PUBLIC CITIZENS WHO WANNA BE ENGAGED AND, AND REALLY ARE HELPING US.

SO I'LL THERE, THANKS FOR THE COMMENTS.

AND I'LL, I'LL NOTE THAT THE BOARDS AND COMMISSIONS FUNCTION IS SOLELY A, A COUNCIL, UH, RESPONSIBILITY.

THESE ARE OUR APPOINTEES AND WE, UH, CREATE THE, UM, THE DIFFERENT BOARDS AND COMMISSIONS THROUGH OUR FORMAL ACTIONS.

SO IT'S CERTAINLY WITHIN OUR PURVIEW TO REVIEW, UM, AND OR HAVE SOME KIND OF A, A SUNSET PROCESS.

YOU MAY ALL WANT TO LOOK BACK AT THE COMMISSION ON COMMISSIONS THAT, UH, UH, OCCURRED BEFORE 2014, SO THAT WHEN THE TEN ONE COUNCIL CAME IN, IN 2015, THERE WAS A SHIFT IN HOW MANY PEOPLE WERE ON THE BOARDS AND COMMISSIONS AS APPOINTEES.

THERE WAS A REVIEW OF WHICH COMMISSIONS AND BOARDS WERE STILL ACTIVE AND OFFERING GOOD SERVICE TO THE COUNCIL.

AS ADVISORS, THEY ARE OUR ADVISORS ON ISSUES.

UM, I REMEMBER THE ATTEMPT TO STREAMLINE AND, AND FORMALIZE AND STANDARDIZE, UH, THE BYLAWS AND THAT WORK CONTINUES.

I REMEMBER THE DIFFICULTY THAT WE ENCOUNTERED IN ELIMINATING DIFFERENT BOARDS AND COMMISSIONS.

SO ONCE CREATED, OFTENTIMES IT'S HARD TO, TO, UM, END.

UH, BUT THAT DOESN'T MEAN THAT IT'S NOT A, A GOOD EFFORT TO HAVE THAT KIND OF AN ASSESSMENT AND ANALYSIS.

AND I, UH, CERTAINLY WOULD COMMEND THOSE CONTINUING ON, UM, IN 2025, ESPECIALLY WITH NEW MEMBERS OF COUNCIL, TO HAVE A LOOK, SEE AT THAT AND PAIR DOWN IF, IF IT'S NECESSARY.

UM, THINGS TEND TO GROW AND EXPAND MORE THAN THEY TEND TO CONTRACT.

SO, UM, BUT A, A GOOD ASSESSMENT ON WHETHER THESE ARE VIABLE AND USEFUL BOARDS IS CERTAINLY A, A REALLY SMART THING TO DO.

SO THANKS FOR BRINGING THAT UP.

YES.

UM, CHAIR ALLISON ALTER.

GOOD MORNING.

UM, YOU KNOW, I I JUST WANNA SORT OF SECOND WHAT, UH, MAYOR PRO TEMPLE SAID THAT, YOU KNOW, IT IS VALUABLE, I THINK TO, TO LOOK AT THESE.

IT WAS DONE, UM, BEFORE THE SWITCH TO TEN ONE AND IT, I THINK IT WAS USEFUL.

WE PROBABLY DO FOR SOMETHING LIKE THAT, WHETHER OR NOT THAT IS A COMMISSION ON COMMISSIONS OR IT IS A SUBGROUP OF COUNCIL THAT MAKES A PROPOSAL, I'M NOT SURE WHICH WOULD BE MORE EFFECTIVE BECAUSE I THINK ULTIMATELY COUNCIL HAS TO DECIDE WHICH OF THESE COMMISSIONS ARE USEFUL TO OUR WORK.

AND IF THEY'RE NOT USEFUL, UM, YOU KNOW, WHETHER, WHETHER THERE'S SOME OTHER VALUE, UM, TO THOSE GROUPS MEETING THAT MIGHT, MIGHT BE IMPORTANT.

UM, BUT I'M NOT, I'M NOT SURE WHICH WOULD BE THE MOST EFFECTIVE WAY TO DO THAT.

UM, BUT I DO THINK THERE'S ABSOLUTELY VALUE IN LOOKING AT IT.

AND, AND FOR THOSE WHO ARE, WHO ARE GONNA BE HERE BEYOND, UM, JANUARY OF 25, I THINK THAT WOULD BE USEFUL, UM, TO LOOK AT.

THANK YOU CHAIR ALTER COUNCIL MEMBER FUENTES.

YES, JUST ALSO WANTED TO SHARE MY SENTIMENTS THAT I THINK, ESPECIALLY SINCE WE'RE COMING UP ON 10 YEARS OF THE TEN ONE SYSTEM BEING IN PLACE AND WITH THIS VOLUME OF BOARDS AND COMMISSIONS THAT WE HAVE IN PLACE, I CERTAINLY WOULD ALSO RECOMMEND IT WOULD BE INTERESTING, UM, COUNCIL MEMBER RYAN AL ALTER, IF YOU'RE INTERESTED IN LEADING ON AN EFFORT TO TAKE A LOOK AT OUR STRUCTURES, AND I CERTAINLY AM SUPPORTIVE OF A SUNSET PROVISION.

[00:20:01]

AND THEN THE OTHER THING TOO, AND I APPRECIATE THIS, UM, REPORT, IS THAT I DON'T KNOW IF OUR COMMISSIONS KNOW THAT THE REQUIREMENT IS TO AT LEAST MEET QUARTERLY, UH, WHEN I SERVED ON A COMMISSION, UH, I THOUGHT IT WAS A MONTHLY REQUIREMENT.

SO I'M WONDERING IF THAT INFORMATION WILL HELP, UM, WITH ATTENDANCE AS WELL, KNOWING THAT IT'S NOT REQUIRED TO BE EVERY MONTH.

BUT THANK YOU.

THESE ARE ALL GOOD COMMENTS AND, AND IT LOOKS LIKE THERE'S SOME GOOD WORK AHEAD FOR THE COUNCIL.

THANK YOU KELSEY FOR THE PRESENTATION AND STEPHANIE FOR GIVING US SOME INSIGHTS.

UM, OKAY.

THERE'S ONE MORE COMMENT.

COUNCIL MEMBER KELLY.

YEAH, THANK YOU SO MUCH.

I REALLY APPRECIATE THE FEEDBACK FROM MY COLLEAGUES AND THE FEEDBACK FROM THE CLERK'S OFFICE AND THE AUDITOR ON THIS TOPIC.

IT WAS SOMETHING I DUG INTO ABOUT TWO YEARS AGO AND, UM, I'LL DEFINITELY SHARE SOME OF MY RESEARCH AND WHAT I LOOKED INTO WITH COUNCIL MEMBER RYAN AL ALTER AFTER THE MEETING.

BUT I LOOK FORWARD TO THE CONTINUED WORK THAT WE HAVE AHEAD OF US IN THIS REGARD AND ENSURING THAT WE HAVE THE BEST PUBLIC PARTICIPATION AVAILABLE HERE IN THE COMMUNITY.

THANKS SO MUCH.

OUR NEXT ITEM, ITEM

[4. COAERS Funding Policy.]

GOOD MORNING CHAIR, VICE CHAIR COMMITTEE MEMBERS, BELINDA WEAVER, CITY TREASURER.

I'M HERE TO PRESENT THE CITY OF AUSTIN EMPLOYEES RETIREMENT ASSISTANCE FUNDING POLICY.

WE HAVE A PRESENTATION, WE'RE GONNA TAKE A LITTLE MOMENT HERE TO PULL UP THE PRESENTATION.

WELCOME MS. WEAVER, SORRY FOR THE BOBBLE.

AND I'LL NOTE THAT THE EXECUTIVE DIRECTOR OF THE CITY OF AUSTIN, UH, EMPLOYEE RETIREMENT SYSTEM IS ALSO WITH US HERE TODAY.

HI, CHRIS.

MADAM CHAIR? YES.

COUNCIL MEMBER FUENTES.

I DID HAVE A QUESTION ABOUT THE ITEM REGARDING THE ACE BOARD APPOINTEE.

I KNOW WE PASSED, WE ADOPTED THAT ITEM, BUT I HAD A QUESTION FOR STAFF WHEN IT'S APPROPRIATE, I'D LOVE TO POSE IT TO YOU.

YOU WANNA ASK IT NOW? SURE.

AND THAT'S A RECOMMENDATION TO, UH, THE COUNCIL FOR APPROVAL LATER.

OH, THANK YOU.

YES, THANK YOU.

UM, I KNOW WE ARE APPOINTING MARGARET SHAW, A CITY BOSTON EMPLOYEE, BUT I THINK AT OUR LAST COUNCIL MEETING WE TALKED ABOUT A PROCESS FOR A NON-CITY STAFF RELATED APPOINTEE.

SO I WANTED TO SEE HOW DOES THIS RECOMMENDATION PAIR UP WITH THE PREVIOUS CONVERSATION WE HAD? WE CERTAINLY HAVE TALKED ABOUT WHAT THAT PROCESS MIGHT LOOK LIKE.

WE HAVE A PROCESS THAT WE PUT IN PLACE FOR APPOINTING MEMBERS TO THE PENSION BOARDS AND THOUGHT WE MIGHT USE SOMETHING SIMILAR WHERE WE DO A PUBLIC OUTREACH, UM, FOR PEOPLE WHO HAVE THE SKILLSET THAT WE'RE LOOKING FOR, AND THEN BRING THOSE APPOINTMENTS TO THIS COMMITTEE AND THEN TO THE FULL COUNCIL.

SO I'LL BE WORKING WITH KIMBERLY RA, UM, IN THE FINANCIAL SERVICES DEPARTMENT, AND WE WILL BRING BACK A PROCESS FOR YOUR REVIEW AND CONSIDERATION.

SO WITH THE RECOMMENDATION OF MARGARET SHAW BEING A CITY OF AUSTIN EMPLOYEE, WHAT WOULD BE THE MAKEUP OF THE ACE BOARD WITH CITY STAFF VERSUS A COMMUNITY? I DON'T HAVE THAT INFORMATION RIGHT OFF THE TOP OF MY HEAD.

I BELIEVE IT'S FIVE CITY STAFF AND TWO NON-STAFF AT THE MOMENT.

BUT I'LL HAVE TO CONFIRM THAT AND GET BACK WITH YOU.

OKAY.

I DO HAVE CONCERNS ABOUT IT BEING SO CITY STAFF HEAVY.

I, I THINK IT'S IMPORTANT THAT WE HAVE NON-CITY AFFILIATED APPOINTEES ON THE A BOARD, ESPECIALLY KNOWING THAT IT'S A SUPER MAJORITY CITY STAFF.

I WOULD HAVE SOME CONCERNS.

IT'S A CITY ASSET, SO, BUT HAPPY TO HAVE THAT CONVERSATION ON WITH THE FULL DICE.

GREAT.

THANK YOU.

IT LOOKS LIKE THEY HAVE THE PRESENTATION UP, SO I'LL CONTINUE ON.

THANK YOU.

ALL RIGHT, THANKS MS. WEAVER.

AND I'M TRYING TO MANEUVER.

THERE WE GO.

OKAY.

SO THE FUNDING POLICY IN AND OF ITSELF IS A REQUIREMENT OF STATE LAW FOR PUBLIC RETIREMENT SYSTEMS IN THE STATE.

SECTION 8 0 2 OF THE TEXAS GOVERNMENT CODE LAYS OUT THE FUNDING POLICY SPECIFICATIONS.

AND SPECIFICALLY IT DOES STATE THAT THE FUNDING POLICY SHALL BE JOINTLY DEVELOPED AND ADOPTED BY BOTH THE PUBLIC RETIREMENT SYSTEM AND THE GOVERNMENTAL ENTITY.

PUBLIC RETIREMENT SYSTEM IN THIS STATE,

[00:25:01]

I DID WANNA NOTE THAT THIS, UM, JOINT DEVELOPMENT AND ADOPTION OF DEFENDING POLICY CONCEPT IS ACTUALLY, UM, SOMETHING THAT WAS RECENTLY ADDED TO THE STATUTE.

UM, I DID ALSO WANNA MAKE THE COMMITTEE AWARE THAT, UM, DEVELOPMENT OF THIS, UH, FUNDING POLICY TRULY HAS BEEN COLLABORATIVE BETWEEN THE CITY AND CO-WORKS.

UM, AS COUNCIL MEMBER POOL STATED, WE DO HAVE THE EXECUTIVE DIRECTOR WITH COS WITH US HERE TODAY, CHRIS HANSON.

AND, UM, I JUST WANTED TO SAY THANK YOU FOR BOTH BEING PROACTIVE AND ENGAGING WITH THE CITY EARLY ON AND DURING THE DEVELOPMENT OF THIS PROCESS.

SO TWO ADDITIONAL POINTS, UM, NOTATED HERE.

FROM A STATUTORY REQUIREMENT PERSPECTIVE, THE WRITTEN FUNDING POLICY MUST DETAIL A PLAN FOR ACHIEVING OFFENDED RATIO OF THE SYSTEM THAT'S EQUAL TO OR GREATER THAN A HUNDRED PERCENT.

AND THEN, UM, ALSO THAT REVISION OF THE POLICY TO REFLECT ANY SIGNIFICANT CHANGES MUST BE DONE SO IN A TIMELY FASHION.

COERCE DID HAVE AN EXISTING FUNDING POLICY IN PLACE, I BELIEVE IT WAS, UM, ESTABLISHED BACK IN 2014.

HOWEVER, DUE TO RECENT LEGISLATIVE CHANGES, THERE ARE MODIFICATIONS THAT NEED TO BE MADE TO THE FUNDING POLICY SO THAT IT DOES NOW ALIGN WITH THE RECENTLY APPROVED LEGISLATION.

, I HAVE LISTED HERE THE PRIMARY OBJECTIVE OF THE COERCE FUNDING POLICY.

THIS IS RIGHT AT THE BEGINNING OF THE FUNDING POLICY.

IT'S VERY BROAD STATEMENT, ALL ENCOMPASSING WITH DETAILS SUPPORTING IT WITHIN THE ACTUAL POLICY ITSELF.

I KIND OF HONE IN ON THAT, ACHIEVE AND MAINTAIN THE FUNDED RATIO EQUAL TO OR GREATER THAN A HUNDRED PERCENT, WHICH IS IN LINE WITH THOSE STATUTORY REQUIREMENTS I MENTIONED A MOMENT AGO.

AND THEN THE PRIMARY REASON FOR THE REVISIONS TO THE EXISTING COERCE POLICY AGAIN IS THE RECENTLY APPROVED LEGISLATION, UM, FROM THE LAST LEGISLATIVE SESSION, UM, IN THE 88TH LEGISLATURE, SB 1444, OR WHAT I REFER TO AS THE COER LEGISLATION WAS PASSED.

I KNOW THE COMMITTEE IS VERY FAMILIAR WITH THIS.

UM, THERE'S BEEN PRESENTATIONS AND AUDIT AND FINANCES, UH, VERY MUCH INVOLVED IN PENSION MATTERS FOR THE CITY.

UM, ALTHOUGH THERE ARE MANY FACETS TO SB 1444, I DO HAVE LISTED HERE SOME HIGHER LEVEL PRIMARY POINTS, UM, FROM THE LEGISLATION THAT WERE INCORPORATED INTO THE FUNDING POLICY.

FIRST OF WHICH IS THE IMPLEMENTATION OF THAT ACTUARIALLY DETERMINED CONTRIBUTION FUNDING MODEL.

UM, THE CARVING OUT OF THAT LEGACY LIABILITY AND PUTTING IT ON THAT FIXED PAYMENT PLAN.

AND THEN FINALLY, THAT CONTRIBUTION INCREASES FOR BOTH THE, THE EMPLOYER AND THE EMPLOYEE RISK SHARING ASSOCIATED WITH THAT CORRIDORS AND THEN MAXIMUM THRESHOLDS AS WELL.

AND THEN FINALLY, UH, THIS TIMELINE WAS DEVELOPED BY COER AND THE CITY FOR APPROVAL OF THE FUNDING POLICY.

AS YOU CAN SEE HERE, IN JUNE, THE COER BENEFIT AND SERVICES COMMITTEE REVIEWED AND MADE A RECOMMENDATION TO THE FULL BOARD OF TRUSTEES FOR APPROVAL OF THE FUNDING POLICY.

I AM HERE TODAY, UM, FOR THIS AUGUST, UH, DATE PRESENTING TO AUDIT AND FINANCE FOR CONSIDERATION AND, UM, HOPEFULLY RECOMMENDATION TO THE FULL CITY COUNCIL FOR APPROVAL OF THE FUNDING POLICY.

IN SEPTEMBER, THE COS BOARD OF TRUSTEES WILL HAVE AN ITEM ON THEIR AGENDA FOR APPROVAL OF THE FUNDING POLICY.

AND THEN IN OCTOBER THERE WILL BE AN ITEM ON CITY COUNCIL FOR APPROVAL OF THE FUNDING POLICY AS WELL.

UM, UPON APPROVAL OF THE COER BOARD OF TRUSTEES AND APPROVAL OF THE CITY COUNCIL OF THIS FUNDING POLICY, COER WILL THEN SUBMIT THE FENDING POLICY TO THE TEXAS PENSION REVIEW BOARD AS REQUIRED BY LAW.

AND THAT CONCLUDES MY PRESENTATION.

UM, I'M HAPPY TO ENTERTAIN ANY QUESTIONS AND I'LL PROBAB I'LL GO AHEAD AND INVITE CHRIS HANSEN UP.

YEAH, YOU WANT UP TO A MICROPHONE, CHRIS? THAT'D BE GREAT.

ANY QUESTIONS FOR MS. WEER OR MR. HANSEN? I WILL SAY AS THE CITY OF AUSTIN APPOINTEE TO THE COMMERCE BOARD THAT, UM, THE BOARD AND THE STAFF AT COORS HAVE WORKED, UM, FOR, FOR A WHILE ON DEFINING AND UPDATING THE FUNDING POLICY.

AND I, I THINK THAT WE'RE DOING SOME PRETTY GOOD WORK OVER THERE.

THE, THE GOAL, OF COURSE, IS TO MAKE SURE THAT THE FUND REMAINS ROBUST AND CAN PAY THE, THE, UM, RETIREMENT, UM, FOR OUR VALUED EMPLOYEES.

AND, AND WE ARE, UH, MEETING THE MARK.

UM, YES, COUNCIL MEMBER RYAN ALTER.

I I DON'T HAVE A QUESTION, UH, MADAM VICE CHAIR, BUT I DO JUST WANT TO ACKNOWLEDGE, I KNOW YOU'VE DONE A LOT OF HARD WORK ON THE, THE CORES BOARD AND, AND JUST FOR OUR EMPLOYEES AND, AND THIS IS A VERY TECHNICAL CHALLENGING TOPIC THAT, UM, I KNOW YOU

[00:30:01]

SO I THINK, UH, IT'S JUST IMPORTANT TO ACKNOWLEDGE THAT.

WELL, THAT'S REAL KIND.

THANK YOU.

THANK YOU.

COUNCIL MEMBER MR. HANSEN, DID YOU HAVE ANYTHING THAT YOU WANTED TO OFFER OR, UH, UH, THANK YOU.

CHRISTOPHER HANSEN, EXECUTIVE DIRECTOR OF CITY OF AUSTIN EMPLOYEES RETIREMENT SYSTEM.

THE ONLY OTHER THING I WOULD ECHO, UM, FROM MS. WEAVER'S PRESENTATION IS THAT THIS WAS, UH, DEVELOPED IN LINE WITH TEXAS PENSION REVIEW BOARD FUNDING POLICY GUIDELINES.

SO A LOT OF WHAT'S IN THERE, UM, MIRRORS THE LEGISLATION AS WELL AS IS IN LINE WITH WHAT THE PENSION REVIEW BOARD WANTS TO SEE IN THESE FUNDING POLICIES.

SO, UM, VERY EXCITED ABOUT THE WORK THAT'S DONE, AND IT WAS DONE IN A VERY COLLABORATIVE EFFORT, UM, AND REALLY APPRECIATE THE CITY'S SUPPORT, UH, IN WORKING WITH US.

IT'S BEEN A GREAT PARTNERSHIP, SO THANK YOU.

GREAT.

I, I AGREE WITH THAT.

IT HAS BEEN REALLY GOOD WORK.

YES.

COUNCIL MEMBER ALLISON ALTER.

THANK YOU.

UM, I JUST WANTED TO ALSO ACKNOWLEDGE THAT OUR STAFF'S WORK, UM, YOU KNOW, THIS IS THE SECOND OF THE, OF THE THREE PENSIONS THAT WE HAVE, YOU KNOW, REVAMPED TO MAKE IT MORE SOUND.

UM, WE DID A, UM, POLICE, A RETIREMENT SYSTEM FUND A FEW YEARS AGO.

UM, OBVIOUSLY THIS ONE WAS DONE LAST, UM, LEGISLATIVE SESSION AND THIS IS THE POLICY UPDATE TO GO WITH THAT.

AND, AND I'M LOOKING FORWARD TO, UM, SIMILAR PROCESS FOR THE FIRE PENSION, UM, THIS SPRING.

THANK YOU.

THANK YOU.

ANY OTHER COMMENTS? GOOD WORK ALL AROUND.

AND I LOOK FORWARD TO, UM, CONTINUING, UH, WITH THE FUNDING POLICY IN FRONT OF THE CO-WORKS BOARD NEXT, NEXT MONTH.

MAYOR, I PUT IN YES.

IF THE, IF THE COMMITTEE COULD PLEASE TAKE ACTION TO MOVE THIS FORWARD TO THE FULL COUNCIL.

YES, WE SURE CAN.

IS THERE A MOTION TO APPROVE THIS AND MOVE THE RECOMMENDATION TO COUNSEL? I SEE OUR CHAIR IS MAKING THAT MOTION.

ALISON ALTER AND IT'S SECONDED BY COUNCIL MEMBER RYAN ALTER.

ARE THERE ANY OBJECTIONS TO ADOPTING THIS MOTION? HEARING NONE.

THE MOTION IS ADOPTED.

THANK YOU ALL.

I THINK OUR LAST TWO ITEMS ARE BRIEFINGS.

FIRST ONE IS

[5. Citywide Employee Retention Audit.]

AND THEN AFTER MR. SALAS WILL BE THE SCOOTER ENFORCEMENT AUDIT, AND THAT WILL BE PATRICK JOHNSON.

MR. SALAS, WELCOME.

I THINK YOUR MIC IS OFF.

UH, I WAS JUST SAYING IT'S ACTUALLY GONNA BE MRS. TRIPLET WHO'S PRESENTING.

OH, VERY GOOD.

WELCOME.

HI.

OKAY, SO GOOD MORNING.

MY NAME IS JASMINE TRIPLET AND I WAS THE AUDIT LEAD ON THIS PROJECT.

SO I WOULD FIRST LIKE TO TAKE A SECOND AND THANK OUR TEAM FOR ALL THE WORK THEY'VE DONE IN THIS AREA, BUT I ALSO WANNA GIVE A SPECIAL THANK YOU TO THE HUMAN RESOURCES DEPARTMENT FOR ALL THEIR WORK IN THIS SPACE IN GENERAL AND THE COLLABORATION WITH US ON THIS PROJECT.

OUR AUDIT OBJECTIVE WAS TO DETERMINE IF THE CITY'S RETENTION POLICIES AND PRACTICES ARE IN LINE WITH OUR PEERS AND IF THEY REDUCE TURNOVER.

SO WHY DOES EMPLOYEE RETENTION MATTER? EMPLOYEES ARE A CRUCIAL PART OF OUR ABILITY TO PROVIDE QUALITY SERVICES TO ALL AUSTINITES.

ANYTIME AN EMPLOYEE LEAVES THE CITY, THAT DEPARTMENT THEN HAS TO TAKE TIME AND RESOURCES TO REHIRE AND GET THE NEW PERSON UP TO SPEED.

THIS CAN HAVE PRODUCTIVITY AND FINANCIAL IMPLICATIONS ACCORDING TO THE SOCIETY FOR HUMAN RESOURCES MANAGEMENT, THE COST OF REPLACING AN EMPLOYEE CAN BE THREE TO FOUR TIMES THAT EMPLOYEE'S SALARY.

WHAT THAT LOOKS LIKE IS AN EMPLOYEE MAKING $50,000, COSTING THE CITY $150,000 TO REPLACE THEM.

MAGNIFY THAT TO CITYWIDE LEVEL.

AND YOU CAN SEE THAT SOME OF THE POTENTIAL IMPACTS WOULD BE IMMENSE.

SO WHAT YOU SEE ON THE SCREEN RIGHT NOW IS OUR TURNOVER RATES OVER THE PAST SEVEN YEARS.

AS YOU CAN SEE, THERE'S BEEN SOME FLUCTUATIONS, BUT OVER THE PAST COUPLE YEARS, OUR TURNOVER RATE HAS DECREASED.

FOR SOME CONTEXT, OUR PEERS EXIST BETWEEN 10% AND 15%.

THIS IS OTHER LARGE TEXAS METROPOLITAN CITIES.

SO WITH REGARDS TO OUR TURNOVER RATE, WE ARE DOING BETTER THAN OUR PEERS.

THE CITY OF AUSTIN DOESN'T HAVE A SPECIFIC RETENTION STRATEGY.

INSTEAD, WE VIEW EVERYTHING THAT WE PROVIDE TO OUR CITY EMPLOYEES AS OUR RETENTION STRATEGY.

THIS IS REFERRED TO AS OUR TOTAL REWARDS PACKAGE.

SO IT INCLUDES EVERYTHING LIKE COMPENSATION BENEFITS, PROFESSIONAL DEVELOPMENT OPPORTUNITIES, AWARDS AND RECOGNITION PROGRAMS, AND A VARIETY OF OTHER THINGS.

FOR THIS AUDIT, WE LOOKED SPECIFICALLY AT THESE COMPONENTS THAT MAKE UP OUR TOTAL REWARDS PACKAGE TO DETERMINE WHICH THINGS ARE

[00:35:01]

THIS BRINGS US TO OUR FIRST FINDING.

OUR FIRST FINDING IS FOCUSED CURRENT ON CURRENTLY WHAT CAN THE CITY DO, OR WHAT IS THE CITY CURRENTLY DOING THAT'S HELPING US RETAIN OUR EMPLOYEES AND WHAT IS THE CITY DOING THAT MIGHT BE PUSHING EMPLOYEES TO LOOK FOR WORK ELSEWHERE? WHAT WE FOUND IS THAT EMPLOYEES ARE GENERALLY SATISFIED WITH OUR BENEFITS, BUT THEY FEEL THAT OUR CAREER, OUR COMPENSATION EFFORTS AND OUR CAREER PROGRESSION OPPORTUNITIES IN ADDITION TO THE CHANGES TO THE TELEWORK POLICY IN 2023, ARE SOME OF THE THINGS THAT HAVE PUSHED THEM TO LOOK FOR WORK ELSEWHERE.

SO AS I MENTIONED, EMPLOYEES LOVE OUR BENEFITS.

THE CITY OFFERS VERY COMPETITIVE BENEFITS WITH REGARDS TO OUR PEERS.

AND ONE OF THE REASONS THAT THIS IS, IS BECAUSE OUR BENEFITS ARE GROWING.

SO WE OFFER OUR STANDARD PACKAGE OF MEDICAL, DENTAL, VISION, PAID TIME OFF, SICK LEAVE, BUT WE ALSO HAVE ADDED A THIRD PERSONAL HOLIDAY RECOGNIZED STUDENT TEETH AS AN OFFICIAL HOLIDAY AND DONE THINGS LIKE INCREASE THE PAID PARENTAL LEAVE FROM SIX TO 12 WEEKS.

WHILE EMPLOYERS ARE GENERALLY SATISFIED WITH OUR BENEFITS, THEY'RE ALMOST EQUALLY DISSATISFIED WITH OUR COMPENSATION APPROACH.

WE LOOKED INTO THAT A BIT AND WE FOUND FOUR MAIN THINGS CAN BE CONTRIBUTING TO THIS.

THE FIRST THAT THAT AUSTIN'S PAY IS NOT STRUCTURED TO MEET AUSTIN'S HIGH COST OF LIVING.

IN REALITY, OUR PAY IS STRUCTURED TO BE IN LINE WITH OUR PEERS.

THE CHALLENGE IS THAT ACCORDING TO THE ECONOMIC POLICY INSTITUTE, AUSTIN HAS THE HIGHEST COST OF LIVING IN TEXAS.

SO WHILE OUR PAY MAY BE IN LINE WITH OUR PEERS, OUR COST OF LIVING IS NOT.

ADDITIONALLY, THE CITY PROVIDES COST OF LIVING ADJUSTMENTS EVERY YEAR, BUT OVER THE PAST COUPLE YEARS, THE INFLATION RATE HAS BEEN HIGHER THAN OUR COST OF LIVING ADJUSTMENT, WHICH CAN MAKE IT DIFFICULT FOR OUR EMPLOYEES TO BUY THE NECESSITIES THEY NEED TO LIVE IN AUSTIN.

THIRD, THE CITY DOES PROVIDE MARKET STUDIES.

THESE MARKET STUDIES OCCUR ROUGHLY EVERY THREE TO FOUR YEARS, BUT THEY TEND TO BE FOCUSED SPECIFICALLY ON POSITIONS THAT EXIST ACROSS MULTIPLE DEPARTMENTS.

POSITIONS THAT ARE EXISTING IN SPECIFIC DEPARTMENTS LIKE A VETERINARIAN OR PARKS GROUND ASSISTANT MAY BE LEFT OUTTA THESE POSITIONS OUTTA THESE MARKET STUDIES.

THESE DEPARTMENTS DO HAVE THE ABILITY TO REQUEST A MARKET STUDY FOR THESE POSITIONS, BUT THEY MAY HAVE TO FUND THEM.

AND LASTLY, THE CITY OFFERS RETENTION INCENTIVES.

THESE ARE USUALLY FINANCIAL STIPENDS ADDED TO AN EMPLOYEE'S PAY FOR POSITIONS THAT ARE HARD TO FILL.

YOU USUALLY FIND THIS WHEN THEY HAVE HIGH TURNOVER OR DIFFICULTY FINDING PEOPLE TO F JOIN THESE POSITIONS.

MOST DEPARTMENTS DON'T HAVE THESE RETENTION INCENTIVES AND MOST DEPARTMENTS WITH HIGH TURNOVER DON'T HAVE THESE RETENTION INCENTIVES.

DEPARTMENTS ALSO NOTED, WE ALSO FOUND EMPLOYEES FOUND THAT OUR CAREER PROGRESSION OPPORTUNITIES ARE AN AREA WHERE THE CITY CAN IMPROVE.

ONE OF THE THINGS THE CITY DOES IN THIS SPACE IS USING CAREER PROGRESSION PLANS, WHICH YOU SEE ON THE SCREEN AS AN EXAMPLE OF ONE OF THE CITY'S CAREER PROGRESSION PLANS.

THESE PLANS ALLOW EMPLOYEES TO COME IN AT SAY, THE TRAINEE LEVEL, AND ONCE THEY REACH THE MINIMUM SKILLS AND QUALIFICATIONS, THEY'RE ABLE TO MOVE TO AN A, A B AND A C.

YOU'LL SEE THAT THE CODE SUPERVISOR POSITION IS OFF TO THE SIDE BECAUSE AT SOME POINT NOT EVERYBODY CAN BE A SUPERVISOR AND YOU DO HAVE TO GO THROUGH THE COMPETITIVE PROCESS FOR THAT.

THESE CAREER PROGRESSION PLANS ALLOW MULTIPLE PEOPLE TO GO THROUGH AND GROW IN THEIR DEPARTMENT.

THE PROBLEM IS A GOOD BIT OF OUR DEPARTMENTS HAVE POSITIONS SIMILAR TO FINANCIAL ANALYSTS, 1, 2, 3, 4 SIGNS AND MARKETING TECHNICIANS, 1, 2, 3, LIBRARIAN, 1, 2, 3.

THESE SORT OF PROGRESSION POSITIONS WHERE YOU CAN SEE THERE'S A CLEAR DELINEATION OF THIS COMES AFTER THIS, THIS COMES AFTER THAT.

BUT THEY DON'T HAVE A CAREER PROGRESSION PLAN.

SO WHAT THAT LOOKS LIKE IS AN EMPLOYEE, SAY A FINANCIAL ANALYST ONE WHO WANTS TO MOVE UP TO A TWO, IS EITHER GONNA HAVE TO WAIT FOR SOMEONE TO LEAVE THE POSITION IN THEIR DEPARTMENT, RETIRE, OR FIND A SIMILAR POSITION IN ANOTHER DEPARTMENT, OR FIND A SIMILAR POSITION OUTSIDE OF THE CITY.

FOR EMPLOYEES, THIS CAN LEAD TO STAGNATION AND GENERAL FEELINGS THAT THEY'RE NOT ABLE TO GROW WITHIN THE CITY OR IN THEIR DEPARTMENT THAT THEY'VE ALREADY INVESTED TIME AND RESOURCES INTO.

AS I MENTIONED BEFORE, ANY TIME AN EMPLOYEE LEAVES THEIR DEPARTMENT, THEY THEN HAVE TO TAKE THAT TIME, THE DEPARTMENT TO REHIRE THAT PERSON, GET THEM UP TO SPEED IN ADDITION TO THE NEW PERSON GETTING UP TO SPEED IN THE NEW AREA.

LASTLY, EMPLOYEES NOTED THAT THEY WERE DISSATISFIED WITH THE CHANGES, PARTICULARLY THE DECREASED FLEXIBILITY OF THE 2023 TELEWORK POLICY.

DURING THE COVID-19 PANDEMIC.

AS MANY OF YOU KNOW, THE CITY ALLOWED MANY EMPLOYEES THAT COULD WORK REMOTELY TO WORK REMOTELY, AND MANY OF THOSE EMPLOYEES DID THAT.

ROUGHLY 50% OF OUR POPULATION, OUR CITY EMPLOYEES, ARE ABLE TO WORK REMOTELY 80% OF THE TIME.

DURING THE CHANGE POLICY LAST YEAR, WE REQUIRED OUR EMPLOYEES TO COME IN 50% OF THE TIME.

THAT LOOKS LIKE COMING IN FIVE DAYS OUT OF A 10 DAY WORK PERIOD.

UM, AND DEPARTMENT DIRECTORS TO COME IN FIVE DAYS OUT OF THE WEEK.

FOR MANY EMPLOYEES, TELEWORK HAS BECOME A MORE OF A PRIORITY, EVEN MORE THAN SALARY AND BENEFITS.

IT'S THE WORK LIFE BALANCE.

IT'S THE ABILITY TO DO A LOT OF MORE THINGS WITH THEIR FAMILIES WITHOUT SPENDING SO MUCH TIME COMMUTING.

IT ALSO IS HELPFUL WITH OUR ENVIRONMENTAL GOALS AND TRAFFIC SAFETY.

[00:40:01]

DURING THIS TELEWORK POLICY.

DURING THE COVID TO 19, WE ALLOWED OUR EMPLOYEES TO LIVE ANYWHERE IN THE STATE OF TEXAS.

SO FOR THESE 50% OF EMPLOYEES THAT LIVE OUTSIDE OF AUSTIN, THERE MAY BE CHALLENGES WITH THEM HAVING TO COMMUTE EVERY SINGLE DAY.

I'M GONNA GO BACK.

OKAY, SO JUST A QUICK RECAP.

FINDING ONE IS LOOKING AT THE THINGS THAT THE CITY IS CURRENTLY DOING.

WE ARE DOING ABSOLUTELY FANTASTIC WITH REGARDS TO OUR BENEFITS AND OUR EMPLOYEES LOVE IT.

SOME AREAS THAT WE CAN IMPROVE ARE COMPENSATION, CAREER PROGRESSION OPPORTUNITIES, AND THE TELEWORK POLICY, INCREASING FLEXIBILITY THERE, LEADING INTO FINDING TWO.

FINDING TWO IS FOCUSED MORE LONG TERM.

WHAT CAN WE DO TO MAKE SURE THAT WE'RE ON TRACK AND THAT WE KNOW WHAT EMPLOYEES WANT AND THAT WE'RE INVESTING IN THE AREAS THAT MATTER MOST? AND WE FOUND THAT THE CITY IS NOT EFFECTIVELY USING OUR DATA TO TARGET THESE MEASURES, AND WE'RE NOT TRACKING THE SUCCESS OF OUR RETENTION INCENTIVES.

ONE OF THE THINGS THAT WE ARE COULD DO BETTER AT IS CAPTURING OUR EMPLOYEE FEEDBACK.

SO BEST PRACTICES RECOMMEND THAT EMPLOYERS CAPTURE THE PERSPECTIVE OF EMPLOYEES THAT CURRENTLY WORK FOR THEM AND THE PERSPECTIVE OF EMPLOYEES THAT ARE LEAVING AND USE THIS PERSPECTIVES TO GUIDE THEIR EFFORTS MOVING FORWARD.

WE FOUND THAT WE CAPTURE THIS INFORMATION AND ARE LISTENING TO THE WORKFORCE SURVEY.

WE CAPTURE THE PERSPECTIVE OF EMPLOYEES THAT ARE CURRENTLY HERE, AND IN OUR EXIT SURVEY WE CAPTURE THE PERSPECTIVE OF EMPLOYEES THAT ARE LEAVING.

HOWEVER, WE HAVE CUT MOST OF THE PAY AND BENEFIT QUESTIONS FROM THE LISTENING TO THE WORKFORCE SURVEY.

UM, AND AS WE JUST TALKED ABOUT, PAY AND BENEFITS ARE CRUCIAL TO EMPLOYEES.

SO BY NOT CAPTURING THIS INFORMATION, WE'RE MISSING OUT ON CRUCIAL PIECES OF INFORMATION THAT WILL LET US KNOW WHAT EXACTLY OUR EMPLOYEES VALUE OR HOW THEY'RE FEELING ABOUT WHAT WE'RE CURRENTLY OFFERING.

ADDITIONALLY, WE FOUND THAT MANY OF THE DEPARTMENTS THAT WE SPOKE TO FELT THAT THE QUESTIONS ASKED IN THE EXIT SURVEY WERE VAGUE.

NOT ENOUGH PEOPLE WERE USING THEM ALTOGETHER.

IT REQUIRED, IT LED TO MANY DEPARTMENTS CREATING THEIR OWN DEPARTMENT SPECIFIC EXIT SURVEYS AS OPPOSED TO USING THE ONE THAT THE CITY PROVIDES.

IF WE'RE COLLECTING THIS DATA, IT SHOULD BE USED TO HELP GUIDE OUR EFFORTS.

LASTLY, WE FOUND THAT WE ARE REALLY LACKING IN OUR MONITORING AND EVALUATION OF THE THINGS THAT WE'RE CURRENTLY DOING.

SO MANY OF OUR PEERS SET TURNOVER GOALS.

SOME OF THEM ARE CITYWIDE, LIKE A 10% CITYWIDE GOAL, A 15% CITYWIDE GOAL, ET CETERA.

SOME CITIES HAVE SPECIFIC TURNOVER GOALS, SAY FOR THEIR IT DEPARTMENT OR THEIR AUDIT STAFF.

MAYBE IT IS 6%, MAYBE AUDIT IS 10%, ET CETERA.

AUSTIN ISN'T DOING EITHER OF THESE THINGS.

THIS LEAVES US A LITTLE OUT OF WHACK FOR THINGS THAT WE CAN DO TO TRACK US MOVING FORWARD.

ADDITIONALLY, WE'RE NOT MEASURING THE SUCCESS OF OUR INITIATIVES, OF OUR INCENTIVES.

I MENTIONED A BIT MORE EARLIER ABOUT THESE RETENTION INCENTIVES, THESE FINANCIAL STIPENDS THAT WE'RE PAYING OUT AND INVESTING IN OUR EMPLOYEES, BUT WE DON'T NECESSARILY KNOW WHEN THEY'VE STARTED AND WE'RE NOT CAPTURING IF THEY'VE BEEN SUCCESSFUL, THIS IS A MISSED OPPORTUNITY TO REVAMP THESE INCENTIVES OR SEE IF THEY'RE WORKING AND CONTINUE MOVING WITH THEM FORWARD.

SO ALTHOUGH THE CITY OF AUSTIN IS DOING GREAT, WE JUST HAVE TWO MAIN RECOMMENDATIONS THAT ARE ESSENTIALLY FOCUSED ON.

ONE, WHAT CAN WE DO TO CONTINUE TO REEVALUATE THE STRATEGIES THAT WE HAVE, IDENTIFY GROWTH AREAS, AND BRING THESE INFORMATIONS TO COUNCIL SO THAT YOU GUYS ARE AWARE OF WHAT OUR EMPLOYEES VALUE THE MOST AT THE MOMENT.

AND THEN TWO, HAVE A PLAN TO CONTINUE TO COLLECT AND USE OUR DATA TO GUIDE FUTURE EFFORTS MOVING FORWARD.

IF WE COLLECT IT, WE SHOULD USE IT A BIT MORE AND I'LL OPEN IT UP TO QUESTIONS.

THAT WAS THE END OF OUR PRESENTATION.

I, I THINK THE HUMAN RESOURCES, UH, DEPARTMENT IS HERE TO RESPOND, BUT BEFORE WE BRING THEM UP, UH, THAT STEP UP, DO WE HAVE ANY QUESTIONS FOR THE AUDITOR, MS. TRIPLET? YES.

UH, YES.

UH, CHAIR ALTER.

THANK YOU.

UM, I WAS WONDERING, TO WHAT DEGREE DID YOU LOOK AT THIS DISAGGREGATED BY DEPARTMENT? 'CAUSE IT'S BEEN MY EXPERIENCE THAT THERE'S CERTAIN DEPARTMENTS THAT HAVE HAD PERIODS OF VERY HIGH VACANCIES, UM, THAT ARE OFTEN REALLY CRITICAL WORKERS.