* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. YES, WE ARE ALREADY [00:00:01] FOR YOU, BUT I WILL LET YOU KNOW THAT, UH, THE CALL END USERS HAVE NOT MADE IT YET. OKAY. UM, WELL MAYBE WE CAN GO AHEAD AND IF THEY ARE NOT ON THE POINT THAT WE START THE AUDIT, WE CAN DO THEM AFTER WE HEAR FROM THE AUDITOR AND THE DEPARTMENT THAT WORKED FOR YOU. UM, JUST, UH, YEAH, JUST CALL FOR THEM AT THAT TIME. AND I'LL LET YOU KNOW IF THEY'RE HERE OR NOT. OKAY. THANK YOU FOR OTHER FOLKS. CAN HELP ME REMEMBER THAT? THAT'D BE GREAT. ALL RIGHT, WELL, GOOD MORNING. MY NAME IS ALICE SMELTER. I CHAIR THE AUDIT AND FINANCE COMMITTEE. IT IS NINE 31 [CALL TO ORDER] ON OCTOBER 21ST. I'M GOING TO CALL THIS MEETING TO ORDER TOGETHER WITH ME ON THE VIRTUAL DAYAS, OUR COUNCIL MEMBERS, TOVO POOL AND FLANAGAN. UH, GOOD MORNING EVERYONE. [1. Approve the minutes of the Audit and Finance Committee Meeting of September 23, 2020.] UM, OUR FIRST ITEM OF BUSINESS IS APPROVAL OF THE MINUTES. CAN I GET A MOTION TO APPROVE THE MINUTES, A MOTION BY COUNCIL MEMBER POOL, SECONDED BY COUNCIL MEMBER FLAN AGAIN? UM, WITHOUT OBJECTION, THOSE MINUTES WILL BE APPROVED. GREAT. THANK YOU. UM, OUR [2. Code Repeat Offender Program Audit (City Auditor’s Office)] NEXT ORDER OF BUSINESS IS THE CODE REPEAT OFFENDER PROGRAM AUDIT. UM, WE DO HAVE TWO SPEAKERS. I UNDERSTAND THEY ARE STILL NOT ON THE LINE. IS THAT CORRECT? THAT IS CORRECT. I'M STILL WAITING FOR THEM. OKAY, GREAT. SO, UM, I THINK WE'LL GO AHEAD, MS. STOKES WITH THE CODE REPEAT OFFENDER PROGRAM AUDIT, AND WE CAN ROPE THOSE SPEAKERS IN AS SOON AS THEY COME ON. AND IF, IF THEY'RE STILL PLANNING TO COME ON AND WE NEED TO VOTE, WE CAN WAIT TO VOTE TILL AFTER THE NEXT ITEMS. SO THANK YOU, MS. STOKES. THAT SOUNDS GREAT. SO THIS IS THE CODE REPEAT OFFENDER AUDIT. UM, IT WAS LED AND MANAGED BY KATIE HOUSTON. AT THIS POINT, ANDREW KEEGAN WAS INVOLVED AND AS, I DON'T KNOW IF HE'D LEFT US FOR VERMONT LAST MONTH, UM, AND, UM, ANNA MORRIS WAS A TEAM MEMBER ON THE PROJECT. UM, KATIE IS GOING TO PRESENT TODAY IF SHE CAN UNMUTE, WHICH I THINK I'M UN-MUTED, BUT I THINK WE IT'S ALSO, OH YES, WE DO HAVE SLIDES. RIGHT. AND I SEE, I SEE THAT OUR REPRESENTATIVES FROM MANAGEMENT HAVE BEEN ABLE TO JOIN US ON, WHICH IS GREAT, RIGHT? THERE'S OUR SLIDES. GREAT. UH, GOOD MORNING, EVERYONE. UH, YOU CAN GO TO THE NEXT SLIDE HERE. AUSTIN'S REPEAT OFFENDER PROGRAM AIMS TO ENSURE AUSTIN RENTERS ARE LIVING IN HEALTHY AND SAFE PROPERTIES. IT WAS CREATED IN 2013, PARTIALLY IN RESPONSE TO SOME STRUCTURAL FAILURES AND MULTIFAMILY HOUSING PROPERTIES ARE REQUIRED TO REGISTER WITH THE REPEAT OFFENDER PROGRAM. I THINK WE'RE ON THE NEXT SLIDE, UH, WHEN THEY MEET CERTAIN CRITERIA, WHICH IS ESSENTIALLY A CERTAIN NUMBER OF CODE VIOLATIONS HAVE BEEN NOTED. UM, IF THE PROPERTY OWNER FAILS TO FIX VIOLATIONS IN THE TIME ALLOTTED, THE CODE DEPARTMENT CAN ESCALATE ENFORCEMENT USING ONE OR MORE OF THE ESCALATION TOOLS THAT ARE LISTED HERE ON THE SLIDE. SO THAT'S INITIATING A SUSPENSION AND ADMINISTRATIVE HEARING TAKING IN CASE THE DISTRICT COURT OR SUBMITTING IT TO THE BUILDINGS AND STANDARDS COMMISSION. NEXT SLIDE PLEASE. OVERALL, WE FOUND THE REPEAT OFFENDER PROGRAM HAS NOT CONSISTENTLY ACHIEVED THE DESIRED GOAL OF ENSURING AUSTIN RENTERS ARE LIVING IN PROPERTIES THAT MEET MINIMUM HEALTH AND SAFETY STANDARDS. AND THAT'S PARTLY DUE TO AUSTIN CODE, NOT ESCALATING THEIR ENFORCEMENT EFFORTS. WE LOOKED AT THE MOST FREQUENT REPEAT OFFENDER PROPERTIES BASED ON THE TOTAL NUMBER OF VIOLATIONS AND FOUND THAT 10 PROPERTIES REPRESENT 5% OF THE PROGRAM REGISTRANT'S, BUT OVER 30% OF THE NOTED VIOLATIONS AND DETAILS RELATING TO THE ENFORCEMENT AT THESE 10 PROPERTIES IS HERE ON THE SLIDE IN THIS COLORFUL DEPICTION. HERE YOU CAN SEE OF THESE 10 PROPERTIES. THREE HAD NO ESCALATED ENFORCEMENT AND FOUR HAD JUST ONE ESCALATED ENFORCEMENT ACTION. REMEMBER THAT'S A SUSPENSION ADMIN HEARING. AND SO ON. THIS IS ESPECIALLY CONCERNING. AS MANY OF THESE PROPERTIES HAVE BEEN IN THE PROGRAM FOR SEVERAL YEARS. FOUR OF THESE HAVE BEEN IN THE PROGRAM SINCE ITS INCEPTION. NEXT SLIDE PLEASE. OKAY. ESCALATING ENFORCEMENT FOR FREQUENT REPEAT OFFENDER PROPERTIES IS IMPORTANT, BUT IT MAY NOT BE THE ONLY SOLUTION INCENTIVIZING PROPERTY OWNER ACTION MAY ALSO LEAD TO IMPROVED AND SAFER RENTAL HOUSING IN AUSTIN. UM, HERE ARE SOME EXAMPLES OF INCENTIVES THAT CITIES CAN OFFER LANDLORDS TO ENCOURAGE THEM TO ADDRESS CODE VIOLATIONS AND APPROVE PROPERTY CONDITIONS. UM, IT ESSENTIALLY BOILS DOWN TO, UH, IMPROVING ACCESS TO CITY RESOURCES AND TENANTS PROVIDING TRAINING OR PROVIDING DIRECT AND INDIRECT FINANCIAL ASSISTANCE. WE THINK THESE ARE A GOOD IDEA [00:05:01] BECAUSE AN INCENTIVE PROGRAM COULD BE A WAY TO GET LANDLORDS TO VOLUNTARILY OFFER TENANT PROTECTIONS, MAKING RENTERS THIRD-PARTY BENEFICIARIES OF GOOD LANDLORD AGREEMENTS BETWEEN THE CITY AND THE PROPERTY OWNERS. LASTLY, IT'S IMPORTANT TO NOTE, AS WE DISCUSS THIS BY ME, THAT ENFORCING THE CITY'S REPEAT OFFENDER PROGRAM ORDINANCE IS A BALANCING ACT GIVEN AUSTIN'S COMPETITIVE HOUSING MARKET PROPERTIES THAT DETERIORATE AND DEVELOP CODE VIOLATIONS ARE OFTEN LESS EXPENSIVE TO RENT. AND BECAUSE OF THAT, MANY OF THE TENANTS OF THE REPEAT OFFENDER PROGRAM PROPERTIES ARE LOW INCOME AND ESPECIALLY VULNERABLE TO DISPLACEMENT. NEXT SLIDE PLEASE. SECONDLY, WE FOUND THAT THE PROCESS USED TO IDENTIFY PROGRAM ELIGIBLE PROPERTIES IS INEFFICIENT AND DOES NOT ALWAYS RESULT IN ELIGIBLE PROPERTIES BECOMING PART OF THE PROGRAM WHEN THEY SHOULD. YOU CAN SEE IN THE GRAPHIC HERE ON THE RIGHT, THAT THIS IS THE CRITERIA PROPERTY NEEDS TO MEET TO GET INTO THE PROGRAM. BUT IN ORDER FOR CODE TO CONFIRM, THE PROPERTY MEETS THIS CRITERIA, THE DEPARTMENT HAS TO CHECK A NUMBER OF SOURCES AND SYSTEMS AND PERFORM A SERIES OF MANUAL REVIEWS FOR EACH POTENTIAL REGISTERING INDIVIDUALLY. THERE ISN'T AN AUTOMATED WAY TO CONDUCT ALL THESE VERIFICATIONS AND TO CONFIRM ALL THE RELATED DATA SOURCES ARE ACCURATE. AND UP TO DATE, THOSE STAFF INDICATED THAT THEY'VE IMPROVED THIS PROCESS AND AUTOMATED SOME OF THESE CHECKS. SO IT SHOULD BE MORE EFFICIENT GOING FORWARD. IN ADDITION TO THE PROCESS LIMITATIONS, THE REPEAT OFFENDER NAME MAY BE CONTRIBUTING TO PROPERTIES, NOT ENTERING THE PROGRAM WHEN THEY SHOULD. WE HEARD FROM SOME EXTERNAL STAKEHOLDERS THAT THE TERM REPEAT OFFENDER OFTEN USED TO DESCRIBE PEOPLE IN THE CRIMINAL JUSTICE SYSTEM MAY MAKE RENTERS AND TENANT ADVOCATES, LESS LIKELY TO REPORT COMPLAINTS ABOUT RENTAL PROPERTIES. AND THAT'S REALLY THE STARTING POINT FOR A PROPERTY GETTING INTO THE PROGRAM. AND THAT'S AN ISSUE IF EVEN THE NAME IS FUNCTIONING AS AN IMPEDIMENT, BUT CHEATING OBJECTIVES. NEXT SLIDE, PLEASE. FOR OUR LAST FINDING, WE FOUND THAT LARGE PROPERTIES TAKE SIGNIFICANTLY MORE TIME AND RESOURCES TO INSPECT ISSUE VIOLATIONS AND ESCALATE THROUGH THE VARIOUS ENFORCEMENT MECHANISMS WHEN THEY'RE ADMINISTERED COMPARED TO SMALLER PROPERTIES. FOR EXAMPLE, A 500 UNIT APARTMENT COMPLEX IS TYPICALLY INSPECTED ONCE PER YEAR. AND IT TAKES ONE TO TWO WEEKS TO DO THE, DO THE WHOLE REVIEW LOG. THE ISSUE SEND THE NOTICES OF VIOLATIONS SO ON AND THE INSPECTION FOR SMALLER PROPERTIES AS ESSENTIALLY THE SAME IN TERMS OF THE PROPERTY ELEMENTS THAT THE CODE STAFF REVIEW. BUT THESE INSPECTIONS DON'T TAKE NEARLY AS MUCH TIME DUE TO THEIR REDUCED SIZE. THESE REVIEWS TAKE ABOUT A DAY OR TWO TO COMPLETE, ACCORDING TO CODE STAFF, DESPITE THIS ALL PROPERTIES PAY THE SAME $372 ANNUAL FEE FOR THE PROGRAM REGISTRATION. NEXT SLIDE, PLEASE. AS WE CONDUCTED OUR AUDIT, WE NOTED TWO ADDITIONAL OBSERVATIONS. FIRST, WE ATTEMPTED TO IDENTIFY PEER PROGRAMS THAT REGULATE RENTAL PROPERTIES, UH, BASED ON COMPLAINTS LIKE AUSTIN DOES AND FOUND THE AUSTIN MODEL TO BE AN OUTLIER. ONE NOTABLE EXCEPTION IS THAT MOST LANDLORD REGULATORY PROGRAMS THAT WE IDENTIFIED REQUIRE ALL PROPERTY OWNERS THAT RENT PROPERTIES TO REGISTER WITH THE CITY AND PAY A NOMINAL FEE BECAUSE WE COULDN'T IDENTIFY A COMPARABLE COMPLAINT DRIVEN MODEL LIKE AUSTIN'S, WE COULDN'T CONDUCT A RELIABLE, PURE CITY ANALYSIS. AND SECONDLY, WHILE COMPLETING THE AUDIT, WE RECEIVED A COPY OF AN INTERNAL EVALUATION OF AUSTIN CODE, WHICH IDENTIFIED MANY OF THE SAME ISSUES THAT WE DETAILED IN OUR REPORT. THE RESULTS OF THIS EVALUATION WERE COMMUNICATED TO CODE MANAGEMENT IN AUGUST, 2019, AND IT WAS FINALIZED IN APRIL AND THIS YEAR AUSTIN CODE APPEARS TO HAVE TAKEN SOME ACTION IN RESPONSE TO THIS REPORT THAT MANY ISSUES REMAIN ON ADDRESSED. NEXT SLIDE PLEASE. LAST SLIDE. I THINK, UH, SO IN RESPONSE TO THESE FINDINGS, WE MADE SEVERAL RECOMMENDATIONS, UH, TO THE DIRECTOR OF THE CODE DEPARTMENT FIRST TO DEVELOP A VOLUNTARY LANDLORD INCENTIVE PROGRAM, INCREASED ENFORCEMENT AND ESCALATE CASES AND WORK WITH THE LAW DEPARTMENT AND CITY COUNCIL TO REVISE THE ORDINANCE. UM, AND IF INDEED THE ORDINANCE IS REVISED, YOU MORE SPECIFICALLY RECOMMENDED THE CITY CONSIDER REQUIRING FULL RENTAL REGISTRATION ACROSS THE CITY RENAMING AUSTIN'S REPEAT OFFENDER PROGRAM AND PROPOSING AN ALTERNATE FEE SCHEDULE THAT ACCURATELY REFLECTS THE GREATER ENFORCEMENT COSTS THAT WE INCUR FROM LARGER PROPERTIES. AND THEN WE ALSO RECOMMENDED THAT AUSTIN CODE WORK WITH CTM TO STREAMLINE THE PROCESSES USED TO IDENTIFY PROPERTIES THAT MAY BE PROGRAM ELIGIBLE, UH, AND AUSTIN CODE AGREED WITH THESE RECOMMENDATIONS AND SUBMITTED AN ACTION PLAN. THAT INCLUDES ACTIONS THEY'RE GOING TO TAKE TO ADDRESS THESE, THAT CONCLUDES MY PRESENTATION. AND I'M HAPPY TO ANSWER YOUR QUESTIONS. THANK YOU. UM, I WANT TO WELCOME MAYOR ADLER TO THE [00:10:01] VIRTUAL DYESS, UM, THIS MORNING. GOOD MORNING. UM, KATIE, IF YOU DON'T MIND, I THINK CATHY, DID YOU WANT TO COME TO MY WORKSHOP? DID YOU WANT TO ASK QUESTIONS RIGHT NOW, OR DO YOU WANT TO HEAR FROM THE CODE DEPARTMENT FIRST? THAT'S FINE HEARING FROM THE COACH, WHATEVER YOU'RE HEARING FROM THE CODE DEPARTMENT. SO WHAT I'D LIKE TO DO IS HAVE US HEAR FROM THE DEPARTMENT AND IF OUR SPEAKERS ONLINE, THEN OUR SPEAKERS AND THEN HAVE OUR QUESTIONS. IF THE SPEAKERS ARE ON THE LINES. SO IF WE CAN HEAR FROM THE CODE DEPARTMENT, PLEASE, THE DIRECTOR, RAMON AND COMMITTEE MEMBERS, THIS IS OUR WHOLESALE ROY INTERIM DIRECTOR FOR THE CALL DEPARTMENT. AND I ALSO HAVE WITH ME HERE, DANIEL WARD, WHERE HE HAS BEEN WORKING WITH, UH, WITH THE ARTICLE'S OFFICE IN THIS, UH, UH, REPORT. I WENT, THANK YOU. UH, UH, KATHY AND, AND COREY, THEY'VE DONE A GREAT JOB IN THIS REPORT AND WE DO AGREE WITH THE FINDINGS. UM, UH, ONE OF THE THINGS THAT WE'VE BEEN DOING, UH, RECENTLY WE ARE ESCALATING, UH, PROPERTIES, PARTIES TO ALLOW THE SUSPENSION OR REVOCATION OF THE REGISTRATION. AND IT'S BEEN WORKING FAIRLY WELL WITH THOSE PROPERTIES, HAVE A PLAN OF ACTION TO ACTUALLY DEAL WITH THIS, UH, SITUATIONS, UH, THE INTERNAL EVALUATION, UH, THAT WE HAD IN THE DEPARTMENT ACTUALLY, UM, KIND OF MATCHES THE FINDINGS, UH, ON THE AUDIT REPORT. AND IT CAME OUT WITH ABOUT 48 RECOMMENDATIONS FOR ENHANCEMENTS ON EFFICIENCIES. SO WE ARE PRIORITIZING THOSE THAT ARE WHAT WE CALL THE LOW HANGING FRUITS THAT WE CAN ACTUALLY IMPLEMENT PRETTY QUICKLY, UH, WORKING WITH CDM TO ACTUALLY AUTOMATE THE SYSTEM. EVEN IF WE DO THAT, THAT'S A LOT OF MANUAL, UH, CHECKS THAT WE HAVE TO DO, BUT I THINK THAT ONCE WE GET THAT REPORTING IN PLACE IS GOING TO HELP US OUT. UH, WE ALSO WITH, UH, UM, UH, STAKEHOLDERS, AND I KNOW THAT THAT RECOMMENDATION NUMBER THREE WILL BE THE ONE THAT WILL TAKE A LITTLE BIT MORE TIME. IT GOES, WE'RE GONNA HAVE TO SAVE DOWN WAY BELOW DEPARTMENT ON THE STAKEHOLDERS. UM, TAKE A LOOK AT THE ORDINANCE AND SEE WHAT NEEDS TO BE DONE COLLECTIVELY MAKE THIS PROGRAM, UH, AN EFFICIENT PROGRAM FOR THE POLITICAL COMMUNITY. SO WE ARE IN AGREEMENT AND WE, UH, PROPOSED AN ACTION PLAN TO ADDRESS THE ISSUES. UM, FLESHLY MADE THIS PROGRAM WORK. UM, I DON'T KNOW IF DANIEL IS IN THE LINE. MAYBE HE WANTS TO EXPAND ON THAT. OH YES, I'M HERE. THANK YOU, ZACH. UM, THANK YOU, MAYOR AND, UH, COMMITTEE MEMBERS, UM, UH, JUST WANT TO THANK THE AUDITOR'S OFFICE, UM, FOR THE OPPORTUNITY TO WORK WITH THEM AND IDENTIFY ISSUES THAT WE CAN WORK ON TO IMPROVE OUTCOMES FOR TENANTS IN OUR COMMUNITIES. OUR GOAL GOING FORWARD WILL CERTAINLY BE TO ANALYZE EVERYTHING WE'RE DOING IN TERMS OF PROCEDURES AND POLICIES INTERNALLY, AND THEN ALSO ENGAGE OUR STAKEHOLDERS TO MAKE SURE THAT WE CAN, UH, WE CAN BRING FORWARD SOME RECOMMENDATIONS AS FAR AS THE ORDINANCE IS CONCERNED TO TRY TO IMPROVE THE EFFICIENCIES AND ULTIMATELY IMPROVE THE CIRCUMSTANCES FOR TENANTS AT SOME OF THESE PROPERTIES, WE HAVE OUR SPEAKERS ON THE LINE, SO IT LOOKS LIKE I HAVE TO CALL AND USERS. CAN I GO TO, UH, VERIFYING WHO THE USER WITH ONE, TWO, THREE, TWO, THREE IS GOOD MORNING, PAUL CADERA WITH AUSTIN APARTMENT ASSOCIATION. OKAY. AND THEN I HAVE A FIVE ONE, TWO NINE, EIGHT, SIX. CAN I VERIFY? OKAY. SO WE HAVE BOTH CITIZENS ON THE LINE IF YOU'D LIKE TO CALL THEM UP. LET'S START WITH MR. CORDERO. YES. GOOD MORNING. MAYOR MEMBERS OF COUNCIL. UM, THIS IS PAUL KUDURO WITH THE AUSTIN APARTMENT ASSOCIATION TO BEGIN, JUST LET, LET YOU KNOW THAT WE DO AGREE WITH THE SPIRIT AND INTENT OF THE REPEAT OFFENDER PROGRAM AND ITS FOCUS ON CHRONIC PROPERTY CODE VIOLATORS. BUT THE PROGRAM HAS FLAWED HAS FLAWS OUT AS OUTLINED IN THE AUDIT EVALUATION AND EVEN THE BETTER ONE DONE, UH, BY THE AUSTIN CODE DEPARTMENT ITSELF EARLIER THIS YEAR, OR REALLY STARTED EARLIER THIS YEAR. YOU KNOW, WE DO SUPPORT THE PROFESSIONALS AT AUSTIN CODE. WE KNOW THAT INTERIM DIRECTOR, ROY IS WORKING HARD AND HIS TEAM IS, IS, UH, IS WORKING TO MAKE IMPROVEMENTS AND COMMUNICATING WITH THE PROPERTIES AND WITH, UH, ALL PROPERTIES, NOT JUST THE REPEAT OFFENDER PROGRAM PROPERTIES, BUT ALL PROPERTIES TO HELP IMPROVE THE PROGRAM. UM, THE REPORT ITSELF, THOUGH IT DOES AGAIN, HAS SOME FLAWS, UH, AND IT STOPS WOEFULLY SHORT OF, OF ANY MEANINGFUL PROGRAM IMPROVEMENT. IT SAYS THAT LARGE PROPERTIES DO NOT PAY THEIR FAIR SHARE OF THE COSTUME, ADMINISTER THE PROGRAM. YET IT DOESN'T ADDRESS THE LOW THRESHOLD OF FIVE VIOLATIONS TO BE PUT INTO THE [00:15:01] PROGRAM, WHETHER IT'S A DUPLEX OR A 400 UNIT APARTMENT, BUT FOR THAT LOW THRESHOLD, THE LARGE PROPERTIES WOULDN'T EVEN BE IN THE PROGRAM. IT SAYS THE AUSTIN CODE TEAM DOES NOT HAVE THE SYSTEMS TOOLS AND PROCESSES NEEDED TO EFFECTIVELY ADMINISTER THE PROGRAM. IT CALLS FOR A LARGER CITYWIDE PROGRAM IN ITS PLACE. THIS IS A HUGE DISCONNECT AND NOT MUCH OF A SOLUTION TO ACHIEVING THE GOAL OF ENSURING PROPERTIES ARE MEETING CODE STANDARD. IT SAYS THAT MANY PROPERTIES REMAIN UNSAFE YET. NO PROPERTIES HAVE BEEN ORDERED TO CLOSE DUE TO UNSAFE CONDITIONS. AND VERY FEW LIFE SAFETY VIOLATIONS ARE EVER CITED. UNSAFE STRUCTURAL VIOLATIONS CITED IN CITED BY AUSTIN CODE AND USE TO PLACE PROPERTIES IN THE PROGRAM INCLUDE FADED NUMBERS ON OVEN RANGE, DIALS, CHIP COUNTERTOP FOR MICAH AND FADED EXTERIOR PAINT. AND THE REPORT ALSO ASSERTS THAT PROPERTIES USE AUSTIN CODE TO IDENTIFY MAINTENANCE ISSUES AS OPPOSED TO PROACTIVELY MAINTAINING THE PROPERTY. WE KNOW OF NO PROPERTY THAT KNOWINGLY WANTS TO REMAIN IN THE PROGRAM JUST TO HAVE MAINTENANCE ISSUES IDENTIFIED. THE INCENTIVES THAT THEY IDENTIFY IN THE PROGRAM ARE NOT REALLY WELL-REASONED. AND I WON'T GO INTO THAT. UM, AND, AND OF COURSE THE NAME OF THE PROGRAM WE DON'T BELIEVE HAS ANYTHING TO DO WITH THE, UH, UH, THE DEFICIENCIES OF THE PROGRAM. YOU KNOW, WE'VE IDENTIFIED SEVERAL, UM, CHANGES, UH, LIKE THE OPPORTUNITY TO CURE. WE DON'T BELIEVE A VIOLATION SHOULD BE A VIOLATION UNLESS IT'S NOT CURED IN TIME. EVERY VIOLATION IS LISTED. UM, WE THINK THERE SHOULD BE A RESPONSIBILITY TO REPORT. A LOT OF PEOPLE HAVE USED THE REPEAT OFFENDER PROGRAM AS A WEAPON. UH, THEY CALL THE CITY RATHER THAN IDENTIFYING MAINTENANCE NEEDS TO MANAGEMENT. UM, IT PUTS THEM IN THE PROGRAM. UM, WE ALSO BELIEVE THAT, UH, THERE SHOULD BE TIME ALLOTTED FOR SOME OF THE REPAIRS TO ACCOUNT FOR PERMITTING TIME. UM, AND WE ALSO BELIEVE THAT THE PROGRAMS SHOULD BE ABLE TO PARTICIPATE IN THE AUSTIN ENERGY REBATES. HELLO, THANK YOU. UM, SO I HAVE BEEN A PROPERTY MANAGER IN AUSTIN FOR ABOUT 20 YEARS AND I'VE MANAGED MULTIPLE PROPERTIES ON THE REPEAT OFFENDER LIST AND BEEN INVOLVED WITH THAT PROGRAM SINCE IT STARTED IN ONE WAY OR THE OTHER. UM, MY FIRST PROPERTY THAT WAS ON THE REPEAT OFFENDER PROGRAM, UM, WAS A SIGNIFICANTLY AGED, UH, PROPERTY BUILT IN 1960. IT NEEDED, UM, QUITE A BIT OF LIFE SAFETY REPAIRS. UM, WE UNDERSTOOD WHY WE WERE ON THAT PROGRAM, BUT TO, UH, CATCH YOU UP A LITTLE BIT, UH, EIGHT YEARS LATER, WE ARE THAT PROPERTY IS STILL ON THE PROGRAM AFTER OVER $6 MILLION OF RENOVATION, THE ANNUAL INSPECTION, UH, GENERALLY GARNERS ABOUT 50 CODE VIOLATIONS. I KNOW THAT SOUNDS REALLY HIGH, BUT THIS IS AGAIN A SIGNIFICANTLY AGED PROPERTY THAT A LOT OF MONEY HAS BEEN PUT INTO. MY, MY POINT IS THERE'S NO PATHWAY TO COMPLIANCE OR INCENTIVE REALLY, UM, THAT ANY ONE WHO'S ON THE REPEAT OFFENDER PROGRAM, UM, CAN SEE THAT. I THINK THAT WHENEVER YOU ARE INVESTING MILLIONS AND MILLIONS OF DOLLARS INTO A MULTIFAMILY PROPERTY AND COMPLETING, UH, MAINTENANCE AS QUICKLY AS YOU POSSIBLY CAN, THAT SHOULD BE TAKEN INTO ACCOUNT, BUT BY CURRENT STANDARDS, IT'S NOT. UM, WHEN WE USED TO RECEIVE, UH, WARNINGS INSTEAD OF VIOLATIONS, WE QUICKLY REMEDIED THEM IN A PROFESSIONAL MANNER. UM, AND SINCE THAT SYSTEM HAS GONE DIRECTLY TO VIOLATIONS EVEN MINOR THINGS LIKE A BAG OF TRASH THAT WAS STIRRED ABOUT IN THE PARKING LOT BY, UM, SOMEONE OVERNIGHT COMES, BECOMES A CODE VIOLATION. SO BY THOSE STANDARDS, IT'S, IT'S VERY EASY AND I COULD GO TO ANY PROPERTY IN AUSTIN AND FIND FIVE CODE VIOLATIONS. UM, SO IT'S NOT PROPERTIES, LARGE PROPERTIES ALL HELD TO THE SAME TWO, FIVE, TWO, UM, RULE, UM, PURCHASING A PROPERTY AND GETTING, UH, ONE CODE VIOLATION BEING THE FIFTH. UH, PUT ME ON THE REPEAT OFFENDER PROGRAM TWO YEARS AGO, IT WAS THE VERY FIRST VIOLATION AS A NEW OWNERSHIP, BUT IT WAS THE FIFTH AND HISTORY OF THE PROPERTY IN THE LAST TWO YEARS. AND THEREFORE THAT PUT US ON THE PROGRAM. UM, AGAIN, THERE'S, THERE'S JUST NO LOGIC AND REASON TO, UM, BEING PUNITIVE WITH SMALL CODE VIOLATIONS THAT AREN'T LIFE SAFETY. WE'D RATHER FOCUS ON THE LIFE SAFETY ISSUES AND A PATHWAY TO COMPLIANCE, TO BE RESPONSIBLE OWNERS INSTEAD OF CHASING MINOR VIOLATIONS. UM, AND THAT, THAT SEEMS TRULY PUNITIVE. THANK YOU, MS. HANGINGS. I'M GOING TO NOW OPEN IT UP TO QUESTIONS. I THINK COUNCIL MEMBER TOBO HAD QUESTIONS. [00:20:01] I WANT TO WELCOME, UH, COUNCIL MEMBER COSAR TO THE VIRTUAL DIOCESE. WELL, COUNCIL MEMBER TOPO, DID YOU WELL, YOU AND I HAVE, I LIKED THAT. WE'LL HAVE SOME MORE QUESTIONS A LITTLE BIT LATER, BUT I WANTED TO THANK THE AUDITOR FOR THE REPORT. I THINK THIS IS VERY HELPFUL. UM, JUST TO KIND OF STEP BACK A LITTLE BIT. THIS HAS BEEN AN ONGOING CONVERSATION FOR NOW FOR, FOR SOME YEARS. AND, UH, THE REPEAT OFFENDER PROGRAM WAS ACTUALLY KIND OF A COMPROMISED POSITION. UM, THERE'S ACTUALLY A, A RESOLUTION THAT I HAD BROUGHT TO THE COUNCIL THAT PASSED ON FIRST READING TO CREATE A RENTAL REGISTRATION PROGRAM BECAUSE WE WERE, WE WERE SEEING LIFE, LIFE, UM, SAFETY ISSUES AT MULTIPLE COMPLEXES THROUGHOUT, THROUGHOUT TOWN, SEVERAL WITH SOME REALLY SEVERE CONSEQUENCES. AND SO WITH THE HELP OF A LOT OF STAKEHOLDERS, WE CRAFTED A RENTAL REGISTRATION PILOT PROGRAM. AGAIN, IT PASSED ON FIRST READING AND THEN WAS INDEFINITELY AS WELL. SO COULD YOU KNOW, IS THIS A WELL THOUGHT OUT AND READY TO GO RESOLUTION IF THERE'S A POLITICAL WILL ON THE DIOCESE TO RECONSIDER THAT THERE WAS NOT A COUPLE TIME, ONE THING THAT REALLY JUST CONCERNS ME ABOUT THIS, AND I KNOW CONCERNS A LOT OF THE STAKEHOLDERS THAT WE'VE WORKED WITH FOR MULTIPLE YEARS IS THAT SOME OF THESE RECOMMENDATIONS ARE JUST NOT MEAN, UM, IN TERMS OF THE NEED TO ESCALATE PENALTIES, UM, THE NEED TO HAVE STRONGER, STRONGER ENFORCEMENT TOOLS. UM, REPEAT OFFENDER PROGRAM DOES PROVIDE THOSE STRONGER ENFORCEMENT TOOLS. AND SO IT'S NOT REALLY CLEAR TO ME WHY THOSE AREN'T BEING, WHY THOSE AREN'T BEING UTILIZED AS EFFECTIVELY AS THEY NEED TO BE. AND THEN ON THE OTHER HAND, UM, I HAD AN OPPORTUNITY THIS SUMMER TO MEET WITH AND OTHER REPRESENTATIVES OF THE DEPARTMENT ASSOCIATION. AND I'D AGREE WITH SOME OF THE EXAMPLES THEY'VE CITED AS BEING, YOU KNOW, EXAMPLES WHERE WE HAVE ENFORCEMENT OF ISSUES THAT ARE, IN SOME CASES, NOT UNDER THE PROPERTY OWNERS CONTROL, THEY ARE REALLY, UM, THINGS THAT RELATE TO A TENANT CHOICE, LIKE LEAVING GARBAGE OUT OUT OTHER THAN PUTTING IT INTO A DUMPSTER. AND SO WE ABSOLUTELY NEED SOME CHANGES HERE WITH REGARD TO THE ORDINANCE THAT'S IN FRONT OF US. AND I THINK THOSE CAN BE DONE WELL, I'M GOING TO CONTINUE TO THINK ABOUT THE RENTAL REGISTRATION PIECE OF THIS, UM, BECAUSE THAT IS ALSO A RECOMMENDATION FROM THE AUDITS. I THANK YOU FOR LOOKING AND PROVIDING THAT CONTEXT FOR US. I WANT TO CIRCLE AROUND BACK TO CODE NOW, UM, HAVING AND SORRY FOR THE LIKE HISTORY CONTEXT, BUT I THINK IT'S IMPORTANT TO UNDERSTAND HOW WE GOT TO THE REPEAT OFFENDER PROGRAM AND THAT IT WAS, UM, A COMPROMISE POSITION TO ADDRESS WHAT IS A SERIOUS, SINCE IT WAS A SERIOUS SITUATION THEN, AND IS A SERIOUS SITUATION. NOW FOR MANY, FOR MANY INDIVIDUALS WHO ARE LIVING IN RENTAL PROPERTIES, SOME OF OUR AGING MULTIPLYING AND STRUCTURES OF THERE IS ALSO NOW MULTIPLE DIRECTIONS TO COUNCIL TO CREATE, I MEAN, FROM COUNCIL TO CREATE, TO CREATE A LOAN PROGRAM OR OTHER KINDS OF INCENTIVES TO HELP THOSE PROPERTY OWNERS AND LANDLORDS WHO WANT TO DO THE RIGHT THING AND DON'T HAVE THE FUNDING AVAILABLE TO THEM TO, TO MAKE THOSE REPAIRS. AND SO I THINK THAT'S THE OTHER PART OF THE QUESTION THAT I WOULD LIKE TO HAVE ANSWERED. I DON'T BELIEVE WE'VE SEEN THAT THERE HAVE BEEN MULTIPLE RESOLUTIONS NOW DIRECTING THAT KIND OF WORK. UM, WE HAVEN'T SEEN ANY OUTCOMES FROM THAT DIRECT OUTCOMES, UM, WITH REGARD TO ASSISTING REPEAT OFFENDER PROGRAMS. SO FROM CODE, I WONDER IF YOU COULD, THERE'S A POINT I WANT YOU TO HIGHLIGHT FOR US, YOU KNOW, WE'VE HEARD A LITTLE BIT OF TESTIMONY FROM SOME STAKEHOLDERS FROM THE APARTMENT ASSOCIATION TODAY ABOUT THE KINDS OF THINGS THAT BECOME VIOLATIONS. ONCE THEY'RE ON THE REPEAT OFFENDER PROGRAM YET IN THE AUDIT, IT TALKS THE MAJORITY OF THE, THE INCIDENTS BEING STRUCTURAL, BEING ABOUT STRUCTURAL CONDITION VIOLATION. SO CAN YOU, CAN YOU WEIGH IN ON WHAT YOU'RE SEEING IN TERMS OF VIOLATIONS? AND ALSO IF YOU COULD CIRCLE US AROUND BACK, I KNOW THE DEPARTMENT NOW FOR ALMOST A YEAR HAS HAD SOME, UM, HAS HAD A REPORT, AN INTERNAL REPORT WITH SOME RECOMMENDATIONS, UH, AND HAS BEEN WAITING TO ROLL THOSE OUT FOR THIS AUDIT. AND SO CAN YOU HELP US, CAN YOU, CAN YOU GIVE US SOME SENSE OF THE TIMING FOR YOU TO BRING FORWARD CHANGES TO THE ORDINANCE THAT THE CODE DEPARTMENT RECOMMENDS THAT HELPS? UM, THAT HELPS ME GAUGE, UH, THE WORK THAT, THAT WORK THAT MY OFFICE IS DOING, UH, TO KNOW, TO HAVE A LITTLE BETTER SENSE OF, OF WHAT CODE PLANTS TO BRING FORWARD AND RENT. OKAY. I'M GOING TO, I'M GOING TO TRY TO ANSWER THE QUESTION ON, I LOOK AT MY, UH, EXPAND ON IT A BIT ON THE, UH, ON THE VIOLATION. SO EARLY ON THE ORDINARINESS ONLY ADDRESS THE, WHAT THEY CALL THE HABITABILITY, UH, VIOLATIONS, ANYTHING THAT AFFECTED LIFE ON SAFETY. UM, THOSE, THOSE WERE CHANGES MADE TO THE ORDINANCE. SO NOW EVERYTHING THAT IS A VIOLATION TO THE, UH, FOR THE PROPER DOMAIN AS CODE, UM, BECOMES [00:25:01] A VIOLATION. SO IT'S DOCUMENTED. AND THAT WAS SOMETHING THAT THE DEPARTMENT, UH, TOOK THAT DIRECTION SEVERAL YEARS AGO TO, UM, TO ADDRESS EVERY VIOLATION THAT IS ACTUALLY, UH, IN THE PROPERTY THAT INCLUDES, UM, SOMETIMES MISSING SMALL DETECTORS, UM, MISSING LIFE FIXTURES, UH, MAINTENANCE ON THE OUTSIDE. UH, THE MORE SERIOUS VIOLATIONS THAT WE FIND ARE MOSTLY RELATED TO, UH, INSTRUCTIONAL ISSUES LIKE STAIRS, HAND RAILS, UH, SOMETIMES, UH, MAJOR WATER LAKES. UH, SO EVERYTHING, WHEN THEY, WHEN THEY INSPECT US, DO THEY, UH, THE PERIODIC INSPECTION ON THE PROPERTY, THEY ACTUALLY IDENTIFY EVERYTHING AND THEY ACTUALLY DOCUMENT EVERYTHING IN THERE. UH, I SAY VIOLATION, UH, THAT'S SOMETHING THAT MAY NEED TO BE WORKED OUT IN THE ORDINANCE. IT'S NOT AS SPECIFIED IN NORTHERN END. SO EVERYTHING THAT IS CONSIDERED TO BE A VIOLATION IS THERE, UH, THEY INTEND ON EVALUATION FOR THE REPEAT OFFENDER. THE PROGRAM WAS PRESENTED TO THE MANAGEMENT BACK IN, UH, 2019, BUT IT WASN'T FINALIZED UNTIL APRIL THIS YEAR. WE ACTUALLY SIGNED OFF ON IT, UH, ON APRIL AND, UH, OFFICIALLY RECEIVED THE REPORT. IT HAS ABOUT 48 RECOMMENDATIONS AND THEY ARE, SOME OF THEM ARE LOW HANGING FRUIT THAT WE CAN ACTUALLY IMPLEMENT WITHOUT ANY CHANGES IN THE BUDGET, UH, WITHOUT ANY CHANGES IN THE ORDINANCE. SO THERE IS A TEAM WORKING ON THAT AND THEY ARE PRIORITIZING THOSE AND, UH, ALREADY IMPLEMENTING SOME OF THE RECOMMENDATIONS THAT WE FOUND IN THE, IN THE REPORT. UM, SOME OF THEM MAY REQUIRE SOME CHANGES TO THE BUDGET. UH, I'M THE ORGANIZED, LIKE, FOR EXAMPLE, THE CHANGES IN THE, UM, IN THE ENTERPRISE SYSTEM THAT WE USE, UM, SYSTEM, SOMETHING THAT WE, YOU KNOW, IT'S GOING TO BE COSTLY, SO WE NEED TO EVALUATE THOSE IN THE NEXT YEAR OR SO, BUT WE ARE ALREADY IMPLEMENTING, UH, MANY RECOMMENDATIONS ON WORKING VERY CLOSE WITH THE STAKEHOLDERS, MOSTLY ON THE COMMUNICATION SIDE OF IT. UM, SO THAT'S, THAT'S THE PLAN THAT WE HAVE. I MEAN, WE HAVE, UM, I HAVE SUBMITTED A PLAN TO, UH, ASSISTANT CITY MANAGER AND, UH, WE ARE IN THE PROCESS OF IMPLEMENTING THOSE RECOMMENDATIONS. UM, IT ALL DEPENDS ON, YOU KNOW, WHEN THE, WHEN THE REPORT CAME UP, UH, WE WERE IN THE MIDDLE OF THE PANDEMIC AND THE CALL DEPARTMENT HAD SHIFTED ALL THE PRIORITIES TO RESPOND, UH, TO THE PANDEMIC AND ENFORCE THE, UH, THE ORDERS THAT WE HAD IN THE CITY. SO IT'S BEEN A, IT'S BEEN A CHALLENGE TO ACTUALLY KIND OF BALANCE IT OUT WITH ALL THE, UH, ALL THE PRIORITIES CHANGE INTO THE CODE 19 PANDEMIC. BUT EVEN THEN WE ARE WORKING ON A PLAN TO ADDRESS IT. I DON'T KNOW IF ANYONE HAS AN APP WHEN IT'S ON THERE. I ASK YOU A FOLLOW UP QUESTION, DIRECTOR, ROY, AND I APPRECIATE THAT THIS SPRING IS FOR THE REASONS YOU IDENTIFIED, UM, A CHALLENGE IN TIME TO GET IT DONE. I JUST WANT TO BE SURE THAT WE'RE NOT, WE'RE NOT HERE A YEAR LATER ASKING THE SAME QUESTIONS ABOUT THAT INVITATION. SO I KNOW MY STAFF HAVE BEEN IN CONTACT WITH YOUR STAFF AND WE'LL FOLLOW UP TO SEE WHICH OF THOSE RECOMMENDATIONS ARE, HAVE BEEN IMPLEMENTED, WHICH ARE ON ROUTE, WHICH COULD, UM, USE SOME COUNCIL SUPPORT AND INITIATIVE ON IF ANY, THE MAJORITY, BUT AGAIN, JUST TO CIRCLE AROUND BACK AND THANK YOU FOR THAT CLARIFICATION, THAT SOME OF WHAT SOME OF THE VIOLATIONS THAT ARE, ARE BEING COUNTED AS VIOLATIONS AND THOSE CURRENT INSPECTIONS ARE A RESULT OF THE MORE EXPANSIVE REVISION THAT WAS DONE THAT TOOK IT AWAY FROM JUST LIFE AND SAFETY HABITABILITY TO SORT OF A BROADER RANGE. AND I THINK THAT CONNECTS WITH MY PAUL AND, UM, AND OUR OTHER SPEAKER TODAY WAS SAYING, HOWEVER, IT STILL SEEMS TO ME THAT THAT'S PROBABLY A MINORITY OF THE VIOLATIONS THAT I'VE HEARD IT, BECAUSE IT DOES SAY 93%. SO JUST AGAIN, TO LEVEL CHECK, IT SOUNDS LIKE THE MAJORITY OF THE VIOLATIONS DO NOT FALL INTO THAT CATEGORY. THEY FALL INTO THE, THEY FALL INTO THE STRUCTURAL CONDITION VIOLATIONS, WHICH ARE THE MORE SERIOUS VIOLATIONS. CORRECT. AND, UH, ONE THING THAT WE NEED TO KEEP IN MIND IS THAT WE HAVE TO GIVE A DUE PROCESS FOR THEM TO REPAIR. UH, SOMETIMES, UH, YOU MAY NOT SEE THAT THERE, THE CASES ACTUALLY ESCALATE BECAUSE THEY ACTUALLY FIX THE SITUATION IN THE TIMEFRAME THAT THEY HAVE. AND WHEN THAT HAPPENED AND THE VIOLATION, IT'S NO LONGER THERE, UH, THIS YEAR, UH, FINALLY WE ARE USING THE, UH, THE TOOLS THAT WE HAVE IN THE ORDINANCE OR SUSPENSION AND REVOCATION OF THE, OF THE, UH, OF THE REGISTRATION. AND, UH, IT'S BEEN AN EFFECTIVE TOOL. UH, IT TOOK MANY, MANY YEARS TO BE IMPLEMENTED, BUT, UH, WORKING WITH THE STAKEHOLDERS ON THE FLOW CHARTS THAT WE ACTUALLY CREATED A, IT'S BEEN A, IT'S BEEN A TREMENDOUS PROCESS THAT WE ARE ACTUALLY USING, AND MAYBE WE COULD GET SOME FOLLOWUP INFORMATION. AND I DON'T KNOW IF THE OTHER COMMITTEE MEMBERS WOULD BE INTERESTED IN THAT, BUT THAT'S, THAT'S A LEVEL OF DETAIL THAT I'M VERY, THAT I'M VERY INTERESTED IN BECAUSE IT, IT HAS TAKEN A VERY LONG TIME TO GET THE DEPARTMENT TO SHIFT FROM ONE OF, UM, WORKING TOWARD COMPLIANCE. SOMETIMES LONG AFTER IT WAS VERY CLEAR, A PROPERTY OWNER WAS NOT GOING TO COMPLY. AND I DO THINK WE NEED TO USE THE TOOLS AND USE THEM EFFECTIVELY. AND IF YOU LOOK AT CITIES LIKE FORT [00:30:01] WORTH AND OTHERS THAT HAVE REALLY SUBSTANTIALLY IMPROVED, UM, IMPROVED THEIR ENFORCEMENT OF SUBSTANDARD HOUSING, IT'S, IT'S USING THOSE KINDS OF TOOLS UNTIL, UNTIL I CREATED A CLIMATE WHERE PEOPLE UNDERSTOOD THAT THEY NEEDED TO, THEY NEEDED TO KEEP THEIR PROPERTIES IN GOOD SHAPE, WHERE THEY'RE GOING TO BE ENFORCED AGAINST. THANKS. OTHER QUESTIONS COME TO MIND. AND I WAS A, I WAS HERE FROM THE BEGINNING, BUT I WAS IN THE STAFF BULLPEN. IT TOOK A LITTLE WHILE FOR THEM TO CALL ME ON TO DIAS. THANK YOU FOR HAVING ME. UM, YOU KNOW, THIS IS OBVIOUSLY A REALLY IMPORTANT PROGRAM AND, UH, PRETTY REGULARLY HAVE CONSTITUENTS REACHING OUT WHO ARE IN PROPERTIES THAT ARE REGISTERED WITH THE PROGRAM. AND ULTIMATELY I'M TRYING, THE PERSPECTIVE I BRING TO THIS IS TRYING TO FIGURE OUT HOW THE CITY SYSTEMS WORK BEST FOR, FOR THEM. SO MY FIRST QUESTION IS JUST FROM, I FEEL LIKE SEVERAL OF THE PROPERTIES THAT I'VE BEEN, YOU KNOW, THAT THERE'S CONSTANT COMMUNICATION ABOUT IT. MY DISTRICT HAVE BEEN A PART OF THE REPEAT OFFENDER PROGRAM, AT LEAST SINCE I CAME ONTO THE DIOCESE, IF NOT LONGER, SINCE THE PROGRAM GOT SET UP, DO WE HAVE A SENSE OF HOW MANY OF THE PROPERTIES HAVE BEEN ON THE REPEAT OFFENDER LIST FROM THE BEGINNING OR FROM NEAR THE BEGINNING AND JUST HAVEN'T GOTTEN OFF? AND WHY IS THAT? AND AGAIN, I KNOW IT'S NOT A SIMPLE QUESTION. I DON'T MEAN THAT TO BE, I JUST MEAN THAT IT'S, IT SEEMS SERIOUS THAT SOME PROPERTIES SEEM TO HAVE BEEN THERE A LONG TIME. SO REALLY WHAT'S THE CORE ISSUE THERE. HE WAS A DIVISION MANAGER FOR THE PROGRAM, SO MAYBE HE HAS SOME INFORMATION. SURE ENOUGH, THE COUNCIL MEMBER CASARA, I'LL HAVE TO GET YOU SPECIFIC DATA IN TERMS OF ACTUAL NUMBERS. UM, BUT THERE ARE A GOOD NUMBER OF PROPERTIES WHO HAVE BEEN IN THE PROGRAM FOR MANY YEARS NOW. UM, SOME HAVE BEEN IN THE PROGRAM SINCE ITS BEGINNING. UM, UH, SOME OF THAT I THINK HOLDS UP TO THE TWO 52 CRITERIA WHERE THE 24 MONTH LOOK BACK PERIOD, UM, IN THE ANNUAL INSPECTIONS THAT WE DO ON THESE PROPERTIES, IT'S AS OUR REPRESENTATIVE FROM A AUSTIN APARTMENT ASSOCIATION MENTIONED, IT, IT IS NOT DIFFICULT TO HAVE FIVE VIOLATIONS, UM, RESULT FOR A MANUAL INSPECTION. AND I THINK WE NEED TO UNDERSTAND TOO, THAT WITH THE BROADENING OF THE VIOLATIONS THAT COUNT TOWARDS THAT TWO, FIVE, TWO CRITERIA AND REQUIRE A PROPERTY TO REGISTER IT, THAT BRINGS IN ANY VIOLATION, THE INTERNATIONAL PROPERTY MAINTENANCE CODE, SO THAT EVEN A MISSING LIGHT COVER OR SOMETHING LIKE THAT, THAT IS LESS SIGNIFICANT THAN A MISSING HAND RAIL OR COLLAPSING STAIRS OR SOMETHING LIKE THAT STILL COUNTS AS A VIOLATION. UM, AND SO WE'RE ENFORCING THE ORDINANCE AS IT'S WRITTEN. AND I THINK THAT'S PART OF WHY YOU SEE SOME OF THESE PROPERTIES REMAIN AND ESPECIALLY ON THE LARGER PROPERTIES, BECAUSE THE TWO, FIVE, TWO CRITERIA IS NOT SCALED TO THE SIZE OF THE PROPERTY. UM, SO IT IS DIFFICULT FOR SOME OF THESE PROPERTIES TO GET OUT, BUT IN FAIRNESS, TOO, THERE'S SOME PROPERTIES THAT JUST DON'T TAKE A PROACTIVE APPROACH TOWARDS MAINTAINING THEIR PROPERTY. WE SEE SOME PROPERTIES THAT WE DON'T TYPICALLY SEE ACTION UNTIL THEY START HEARING FROM US. AND SO FOR EITHER CODE OR THE AUDITOR, AND I'VE SCANNED THE AUDIT, BUT LET ME KNOW IF Y'ALL ALREADY HAVE SOME OF THIS. IT SEEMS LIKE SOME OF THE INFORMATION IS A LITTLE OPAQUE. I I'M REALLY INTERESTED IN HOW MANY PROPERTIES OVER THE COURSE OF TIME BEING AN PRO IN THE PROGRAM HAVE NOT GOTTEN SAFE, UM, AS OPPOSED TO ARE IN THE PROGRAM OR ORANGE OR GET BASELINE. IF WHAT WE'RE TRYING TO DO IS PRIORITIZE THE SAFETY OF TENANTS. UM, UH, AND I, AND I MEAN THAT IN ALL FORMS OF SAFETY, BE IT I'M MISSING HANDRAIL OR FRANKLY HAVING AN INFESTATION. I MEAN, THESE THINGS ARE, YOU KNOW, JUST, YOU KNOW, THESE PRETTY SIGNIFICANT, UH, CHALLENGES. I'M JUST INTERESTED IN HOW MANY PLACES AFTER A FEW MONTHS OF BEING IN THE PROGRAM IN THE CITY, FOCUSING ON THEM ARE STAYING IN THAT CONDITION. BECAUSE MY SENSE IS THAT THERE'S A DECENT NUMBER OF THEM. MAYBE THERE ARE SOME ALSO THAT ARE IN THAT CATEGORY WHERE THEY WERE UNSAFE, THEY GOT SAFE. AND THEN THERE WAS A LIGHT COVER ISSUE. MAYBE THAT'S ONE CATEGORY THAT I WANT TO KNOW WHAT THE NUMBER IS, BUT, BUT I'M ALSO INTERESTED IN HOW MANY FALL IN THIS CATEGORY OF JUST FOR YEARS CONTINUE TO NOT ADDRESS THOSE CODE ISSUES. AND THEN AMONGST THAT GROUP, DO WE HAVE A SENSE OF HOW MANY OF THEM THE LANDLORD IS REALLY TRYING TO FIX IT? AND THERE'S JUST SOME DEEPER ISSUE THAT I WOULD LOVE TO HEAR FROM Y'ALL THAT THEY CAN'T FIX SO THAT MAYBE THE CITY NEEDS TO GET INVOLVED TO HELP FIX AND HOW MANY CASES THE LANDLORD IS SIMPLY NOT ACTING WITH THE LEVEL OF URGENCY NECESSARY. TO ME, THOSE ARE THE CATEGORIES THAT ARE POTENTIALLY OF [00:35:01] MOST INTEREST THAT NEED TO BE DUG INTO BEFORE WE GET TOO DEEP INTO RENAMING THE PROGRAM OR DOING OTHER THINGS, WHICH I'M FINE WITH DOING, BUT HOW MANY PROPERTIES AREN'T BECOMING SAFE. AND THEN OF THOSE THAT AREN'T HOW MANY OF IT IS, IT'S OUR SENSE THAT LANDLORD JUST ISN'T DOING WHAT THEY SHOULD DO AND HOW MANY IT IS THAT THERE POTENTIALLY MIGHT NEED TO BE COMMUNITY AND CITY AND PHILANTHROPIC HELP YOU HAVE ANY SENSE OF THAT KIND OF BREAKDOWN. UH, WE DON'T, WE DON'T HAVE, UM, A, A DATA MEANS THAT I'M AWARE OF TO SPECIFICALLY, THAT'S GOING TO SPECIFICALLY SAY WHICH TYPES OF VIOLATIONS ARE THE MORE CONCERNING TYPES VERSUS ONES THAT ARE MORE JUST COMMON, YOU KNOW, LIGHT, FIXTURE, COVER, MISSING TYPE ISSUES. UM, I W WE CAN CERTAINLY DO SOME ANECDOTAL WORK IN TERMS OF, YOU KNOW, SERVING OUR PROPERTIES AND SERVING OUR INSPECTORS, UM, TO GET A SENSE FOR WHICH PROPERTIES WE TYPICALLY SEE ACTION FROM THE LANDLORD AND WHICH ONES ARE ALMOST NON-COMMUNICATIVE, UM, BECAUSE WE CERTAINLY HAVE SOME OF THOSE LIKE THAT. UM, AND SO THAT THAT'S SOME WORK WE CAN DO AS PART OF THIS PROCESS IS TO ANALYZE THE PROPERTIES. WE HAVE LOOK AT HOW LONG THEY'VE BEEN IN THE PROGRAM AND TRY TO DETERMINE WHY THEY STILL ARE IN THE PROGRAM AND WHAT CONDITION THOSE PROPERTIES ARE IN. THAT'S DEFINITELY SOMETHING WE CAN LOOK, LOOK TOWARDS TRYING TO GET. WHAT ABOUT FROM THE AUDITOR'S OFFICE SIDE? IS THAT SOME INFORMATION THAT Y'ALL LOOKED AT, OR AM I ASKING THE QUESTION WRONG? IS THERE SOMEWHERE WHERE I'M MISSING SOMETHING WITH THAT KIND OF SET OF QUESTIONS? UH, I'D SAY THERE'S DEFINITELY CERTAIN VIOLATIONS THAT, UM, I THINK WE CAN HOPEFULLY UNIVERSALLY RECOGNIZE AS TRUE SAFETY ISSUES. SO THE TOPIC THAT CAME UP EARLIER, THE CHIPPED FOR FORMICA, THE COSMETIC STUFF, THAT IS, THAT'S REALLY NOT WHAT WE SAW IN OUR WORK AND OUR REVIEW OF THE DATA AND OUR RIDE, ALONG TO THE SITES, WE WERE SEEING TRUE SAFETY PROBLEMS, LIKE MISSING SMOKE DETECTORS, UM, DOORS AND WINDOWS THAT JUST WON'T LOCK, OR CAN'T BE SECURED, UH, LACK OF HOT WATER INFESTATION. MAYBE THOSE LATTER TWO ARE NOT A DIRECT, YOU KNOW, LIFE RISK, BUT CERTAINLY A SAFETY PROBLEM. SO MAYBE THERE WOULD BE A WAY TO LOOK AT THE DATA THROUGH THAT LENS AND KIND OF PULL OUT JUST THOSE, I GUESS, SPECIFIC VIOLATIONS THAT WE KNOW TO TRULY BE A SAFETY ISSUE KIND OF, REGARDLESS OF THE OTHER ISSUES. AND THEN LOOK AT THE DATA THROUGH THAT LENS. ABSOLUTELY. AND, AND I HEAR ABOUT THOSE THAT YOU JUST DESCRIBED ALL THE TIME. THOSE ARE THE PHONE CALLS THAT WE GET. WHAT I'M TRYING TO FIGURE OUT IS HOW, WHEN THAT HAPPENS, RIGHT, BECAUSE IN OUR OFFICE, RIGHT, WE GET THE COMPLAINT, WE ISSUE IT BACK TO CODE. AND THEN MAYBE WE HEAR BACK FROM THE FIRST, A FEW MONTHS LATER, OR WE DON'T HEAR ANYTHING. AND THAT DOESN'T, THAT CAN MEAN A LOT OF DIFFERENT THINGS. SO WHAT I'M TRYING TO FIGURE OUT IS IN THE CASES THAT THAT HAS HAPPENED, THAT WE'VE GOT THOSE SERIOUS ISSUES, AND THEN THEY GET PUT IN THE REPEAT OFFENDER PROGRAM, HOW OFTEN DO THEY GET FIXED QUICKLY VERSUS NEVER GET FIXED? AND THEY'RE STILL ON FOR YEARS. AND THEN IF THEY DON'T GET FIXED, HOW OFTEN THAT'S JUST BECAUSE THE LANDLORD ISN'T DOING WHAT THEY SHOULD DO, WHICH SEEMS TO INDICATE THEM THAT THERE NEEDS TO BE MORE ZEALOUS ENFORCEMENT VERSUS IN WHAT CASES IS IT THAT THERE IS SOMETHING THAT THE LANDLORD CAN'T JUST DO ON THEIR OWN. SO NO MATTER HOW MUCH WE RAMPED UP ENFORCEMENT, THERE MIGHT NEED TO BE SOME, THE OTHER CITY PROGRAMS THAT WERE DESCRIBED IN THE AUDIT. AND THAT'S, OF COURSE, I KNOW THAT BOTH OF THOSE CASES EXIST, BUT MY HOPE WOULD BE THAT BETWEEN THE CODE DEPARTMENT OF THE AUDITOR'S OFFICE, WE COULD GET A BETTER SENSE OF WHICH ONE'S THE MORE SIGNIFICANT PROBLEMS. SO WE KNOW WHAT, HOW TO FIX IT. I THINK FROM OUR PERSPECTIVE, I WOULD SAY, I THINK YOU'D HAVE TO GO THROUGH ALL THE, AND YOU WOULD PROBABLY WANT TO GO THROUGH THE ONES THAT ARE STILL IN THE PROGRAM. I THINK THERE'S 73 RIGHT NOW GIVE OR TAKE, AND YOU WOULD HAVE TO GO THROUGH THEM CASE BY CASE AND LOOK AT EACH INDIVIDUAL KIND OF CITATION AND WHAT WAS DONE AND WHEN THINGS WERE DONE. UM, SO I THINK THAT COULD BE DONE. I THINK IT WOULD BE A, UH, A VERY MANUAL CASE BY CASE TYPE REVIEW. THAT WOULD BE HELPFUL. AND THEN THE LAST THING I WOULD MENTION IS MY UNDERSTANDING IS THAT THERE ARE SOME LIMITED CASES WHERE PROPERTIES HAVE EXITED THE PROGRAM BECAUSE THEY'RE THEN LIKE SOME EXTENSIVE INVESTMENTS IN THE PROPERTY THAT MIGHT RAISE RENT, LIKE KIND OF LIKE UPGRADING THE THING, WHICH ACTUALLY COULD RESULT IN THE LOSS OF SOME OF THE HOUSING UNITS FOR THE PEOPLE WHO NEEDED THE SAFETY REPAIRS. IS THAT, DOES THAT HAPPEN AGAIN? THAT'S ANECDOTAL, I'VE HEARD ABOUT IT. IN SOME CASES, WE KNOW HOW OFTEN THAT IS A CHALLENGE THAT WE SHOULD ALSO BE AVOIDING, NOT BECAUSE WE SHOULDN'T HAVE TO CHOOSE BETWEEN PEOPLE BEING DISPLACED AND PEOPLE LIVING IN UNSAFE CONDITIONS. WE HAVE TO FIGURE OUT HOW TO HANDLE [00:40:01] THOSE. BUT HOW OFTEN IS THAT A CONCERN WHERE IF WE JUST ZEALOUSLY ENFORCE DON'T HAVE THAT TENANT VOICE AT THE TABLE, AND THAT WE LOSE THE THOUSANDS THAT WE DON'T, WE DON'T ACTUALLY COLLECT THE DATA ON THE, ON THE RENTAL PRICES, BUT THE ORGANISM ALLOWS FOR ANY OWNER TO, UM, INVEST IN THE PROPERTY AND ACTUALLY FIX ALL THE VIOLATIONS AND GET OUT OF THE PROGRAM IN 90 DAYS. UH, SO WHEN THERE'S ACTUALLY A CHANGE IN OWNERSHIP, THE ORGANISM ALLOWS FOR THAT. AND THEY MAY, UH, THAT MAY, UH, UH, ENDED UP, YOU KNOW, WE, IN A SITUATION LIKE YOU DESCRIBED WHERE ONCE THEY ACTUALLY INVEST, UH, A LOT OF MONEY IN THE PROPERTY, THEY MAY RAISE THE RENT. UH, WE DON'T ACTUALLY COLLECT THAT DATA. SO, UM, WE DON'T, WE DON'T REALLY GET INTO THE, THE DEMOGRAPHICS ON, UH, IN TERMS OF, UM, UM, THE CAUSE OF THE RENT AND THINGS LIKE THAT. BUT THAT'S ACTUALLY A POSSIBILITY, AND WE HAVE MANY CASES WHERE, UM, PROPERTIES HAS CHANGED OWNERSHIP AND THEY HAVE INVESTED HEAVILY ON THE PROPERTY AND, UH, BEING ABLE TO BE REMOVED FROM THE PROGRAM. IT HAPPENED HAVING THAT LIST AVAILABLE THAT ALSO BE HELPFUL. CAUSE I THINK IN THOSE CASES YOU WOULD WANT TO MAKE SURE THE TENANTS HAVE GOOD REPRESENTATION IN THAT PROCESS. SO I WOULD BE INTERESTED IN JUST THE NUMBER THAT HAVE USED THAT. THANK YOU. THANK YOU FOR A CHAIR AND COMMITTEE FOR GIVING YOU THE TIME TO ASK THAT SAME QUESTION. COOL. YEAH. I JUST HAVE A QUICK KIND OF TO SET THE, SOME CONTEXT HERE, THE HISTORY OF THE PROGRAM, IT USED TO BE, IT WAS NOT A COMPLAINT DRIVEN PROGRAM UNTIL ABOUT 10 YEARS AGO. IS THAT RIGHT? CAN YOU, DOES ANYBODY HERE HAVE ANY, UM, INSTITUTIONAL RECALL ON HOW IT OPERATED PREVIOUSLY? WHAT SURROUNDED THE SHIFT TO THE COMPLAINT DRIVEN AND THEN HOW YOU WOULD ASSESS THE COMPLAINT BURDEN VERSUS HAVING A BROADER BLANKET EXPECTATION OF INSPECTIONS FOR ALL, ALL APARTMENTS? IS IT ALMOST SEEMS TO ME LIKE WE'RE, WE'RE LEAVING, UM, SORT OF A SMALL REPAIRS THAT COULD BE DONE ON SCHEDULED MAINTENANCE. THOSE SORT OF DROP-OFF DROP OFF THE CALENDAR. AND THEN BY THE TIME WE GET A COMPLAINT, IT'S BECAUSE THINGS ARE REALLY BAD, BUT WHAT IF WE HAD A, HAD A DIFFERENT APPROACH WHERE THE REVIEWS WERE MORE SYSTEMATIC, MORE SCHEDULED AND THE SMALLER CONCERNS DIDN'T GET TO BE BIG AND MORE EXPENSIVE? SURE. SO KIND OF WANT TO SEE WHY IT WAS, WE SHIFTED TO A COMPLAINT PROCESS AND THEN HOW THAT CHANGED OUR WHOLE APPROACH AND THE INTERACTIONS WITH THE APARTMENT FOLKS, BECAUSE I THINK THEY ALSO WANT TO HAVE SAFE AND HEALTHY PLACES FOR PEOPLE TO LIVE. I DON'T THINK ANY OF US HAVE ANY DIFFERENT APPROACH TO THAT AT ALL. AND IT MAY BE THAT WE HAVE JUST KIND OF LEFT SOME THINGS ON THE TABLE BY NOT IDENTIFYING THEM EARLIER ON PROCESS BECAUSE IT IS A COMPLAINT DRIVEN NOTIFICATION NOW. SO I CAN TRY TO DISCUSS THAT A LITTLE BIT. UM, THE, SO THE REPEAT OFFENDER PROGRAM, UH, CAME OUT OF AN ORDINANCE THAT WAS PASSED IN 2013. AND ONE OF THE ENHANCEMENTS THAT THIS PROGRAM ON FRIDAY IS ACTUALLY TO CREATE THAT ANNUAL INSPECTION PROCESS. UM, THAT IS A PROACTIVE APPROACH. LOOKING AT THESE PROPERTIES PRIOR TO THAT, EVERYTHING WAS, EVERYTHING WAS, IS, IS COMPLAINT DRIVEN. AND BY AND LARGE, OUR OPERATIONS THAT AUSTIN CODE DEPARTMENT STILL ARE COMPLAINT DRIVEN. UM, THE REPEAT OFFENDER PROGRAM IS ONE OF THE FEW, UH, PROGRAMS THAT WE HAVE THAT HAS A PROACTIVE COMPONENT TO IT, WITH WHAT WE CALL THE PERIODIC INSPECTION, WHERE WE'RE ON EACH PROPERTY AT LEAST ONCE A YEAR. UM, LOOKING PROACTIVELY LOOKING FOR CODE VIOLATIONS ON THE EXTERIOR OF THE BUILDING AND THE VACANT UNITS AND IN OCCUPIED UNITS. UM, AND SO THAT'S ACTUALLY ONE OF THE ENHANCEMENTS THAT PROGRAM PROVIDED PRIOR TO THE REPEAT OFFENDER PROGRAM. WE DIDN'T HAVE A TOOL THAT, THAT DICTATED THAT WE DO A PROACTIVE APPROACH. UM, AND WE DO HAVE TO BE CAREFUL WITH PROACTIVE APPROACHES THOUGH, JUST CAUSE WE HAVE TO BE, WE ALWAYS HAVE TO BE EQUITABLE AND FAIR AND OUR PROCESSES. SO WE HAVE TO BE CONSCIOUS OF HOW WE TAKE PROACTIVE APPROACHES SO THAT WE AREN'T VIEWED AS TARGETING ANY PARTICULAR PROPERTY. HMM. TO TRY TO FIND A WAY TO IN THE PROCESS SO THAT WE CAN, UM, ENSURE THAT NO MATTER WHAT COST A UNIT IS THAT EVERYBODY GETS. SO, UM, THANK YOU. UM, BEFORE I ASK MY QUESTIONS, MAYOR OR [00:45:01] COUNCIL NUMBER FIVE AGAIN, DID YOU HAVE ANY QUESTIONS OR COMMENTS? SO, UM, LET ME START BY FIRST ASKING, YOU KNOW, THERE WAS THIS INTERNAL REPORT, UM, AND I KNOW THAT, UM, YOU KNOW, THE AUDIT DEPARTMENT REVIEWED THAT. UM, WE'RE NOT ACTUALLY HEARING FROM THAT TEAM. I'M NOT SURE THAT, YOU KNOW, WHO, WHO IS IT THAT DID THAT AUDIT INTERNALLY. UM, SO LET ME ASK YOU THAT FIRST, THE REPORT THEN, THEN REPORT WHAT WAS ACTUALLY TASKED TO THE BUSINESS PROCESS CONSULTANTS THAT WE HAD ACTUALLY HIRE FOR, UH, SPECIFICALLY FOR THAT PROCESS. UH, BEFORE THAT WE WERE TRYING TO GET SOMEBODY FROM THE OUTSIDE TO ACTUALLY DO THE, UH, THE REPORT. WE ENDED UP HIRING A BUSINESS PROCESS CONSULTANT. HIS NAME WAS JOHN HAND, UH, AND, UH, ALEX ARE HERE. THEY'RE NO LONGER COMING. DON'T HAVE, IT'S NO LONGER WITH THE DEPARTMENT, BUT THEY SENT A REPORT TO US, UM, UH, IN APRIL. OKAY. SO WHAT I WOULD LIKE TO SEE AS A FOLLOWUP AND WE CAN DETERMINE WHETHER IT NEEDS TO COME BACK TO THE COMMITTEE AS A WHOLE, BUT I WOULD REALLY LIKE, I HAVEN'T SEEN THAT REPORT MYSELF PERSONALLY. MY STAFF MAY HAVE, I HAVE NOT. I'D LIKE TO SEE THAT REPORT AND I'D LIKE TO KNOW SOME DETAILS ON THE FOLLOWUP OF WHAT'S BEING DONE BECAUSE I THINK IT GETS INTO MUCH MORE DEPTH THAN WHAT THE AUDITOR'S OFFICE DID. UM, AND LIKE TO UNDERSTAND WHAT'S BEING FOLLOWED UP WITH AND WHAT'S, WHAT'S NOT BEING FOLLOWED UP WITH. UM, SO I WOULD LIKE TO SEE THAT, UM, AND THEN I WANTED TO, UM, YOU KNOW, I HAVE SOME CONCERNS THAT ARE KIND OF BROADER THAN THIS PROGRAM, BUT, UM, SO I THINK THAT THIS PROGRAM THEY'RE REPEAT OFFENDERS SOLVING A VERY REAL PROBLEM. UH, BUT IT'S ALSO VERY CLEAR FROM THIS AUDIT AND FROM THE INTERNAL REPORT, FROM WHAT WE KNOW, UM, AND WHAT WE JUST HEAR FROM FOLKS AND THEIR LIVING CONDITIONS THAT OUR SYSTEM ISN'T WORKING WELL. UM, THIS INFORMATION IS VERY HELPFUL FOR THIS SPECIFIC PROGRAM. AND I WANT US TO ADDRESS THOSE SPECIFIC CONCERNS FOR THE REPEAT OFFENDER. UH, BUT I'M CONCERNED ABOUT MORE THAN JUST A SPECIFIC PROGRAM. AND WHAT I'D LIKE TO RAISE WITH MY COLLEAGUES IS THAT I HAVE AN INTENTION TO WORK ON REALLY UNDERSTANDING HOW THIS DEPARTMENT OPERATES AS A SYSTEM AND WHERE IT CAN IMPROVE SOME OF THE LANGUAGE THAT STANDS OUT TO ME FROM THIS AUDIT INCLUDES IN THE SUMMARY. THESE SYSTEMS ARE CUMBERSOME SOMETIMES UNRELIABLE AND DO NOT ALWAYS CONTAIN ALL THE INFORMATION NEEDED TO MAKE INFORMED DECISIONS. THAT'S MY PERCEPTION BASED ON OTHER REPORTS AND ANECDOTAL EXPERIENCES THAT THIS DIAGNOSIS OF THE INTERNAL SYSTEM IS LIKELY NOT LIMITED TO THIS ONE PARTICULAR PROGRAM, BUT IS OPERATING ACROSS THE DEPARTMENT. UM, AND IN RAISING THIS, I'M NOT TRYING TO DISPARAGE THE WORK OF ANY SPECIFIC STAFF. AND I KNOW THAT WE HAVE A INTERIM, UM, DIRECTOR AND YOU ARE JUST STEPPING UP AND TRYING TO MAKE ALL THE CHANGES, BUT IT DOES STRIKE ME THAT WE NEED TO DO A DEEPER DIVE INTO HOW OUR SYSTEMS WORK IN THIS DEPARTMENT AND WHETHER THEY ALLOW FOR EFFICIENT AND EFFECTIVE OPERATIONS. UM, THE EXAMPLE THAT I HEAR ABOUT IN MY DISTRICT IS I CONSTANTLY HEAR ABOUT FROM CONSTITUENTS, NOT JUST IN MY DISTRICT, BUT ACROSS THE CITY, UM, ABOUT THE CUMBERSOME AND UNNECESSARY DIFFICULT PROCESS TO OBTAIN STR ENFORCEMENT FROM THE DEPARTMENT. AND A LOT OF THE ISSUES RAISED IN THIS AUDIT ARE MIMICKED IN THAT TYPE OF EXPERIENCE. AND IT JUST SORT OF TRACKS WITH OTHER TYPES OF ISSUES THAT GET HANDLED BY THE DEPARTMENT. SO DOES IT NOT REALLY A QUESTION FOR, FOR CODE BY, UM, WHAT I JUST WANT TO, UM, YOU KNOW, LAYOUT THAT I'VE BEEN SPEAKING PRIMARILY WITH COUNCIL MEMBER ELLIS ABOUT OUR SHARED INTEREST IN COLLABORATING TO WORK ON THIS DEEPER DIVE INTO THE EFFECTIVENESS OF CODE, UM, FROM A BROADER PERSPECTIVE IN TERMS OF HOW WE USE TECHNOLOGY, HOW WE TRAIN STAFF AND HOW THEY SPEND THEIR TIME AND OTHER MATTERS. THIS CAME UP TO SOME DEGREE IN THE SPECIAL REQUESTS THAT I JOINED WITH COUNCIL MEMBER OF FLANAGAN POOL, ALICE AND OTHERS IN SUPPORTING. UM, BUT I WANT TO TAKE THIS OPPORTUNITY TO FLAG AN INTEREST IN LOOKING AT THE INTERNAL SYSTEM BROADLY AND DEEPLY AND DETERMINED IF ANYONE ELSE IS INTERESTED IN THAT TOPIC. UM, AND TO BE CLEAR, I DON'T WANT TO DO IT STRICTLY IN THE CONTEXT OF PUBLIC SAFETY, UM, WHICH IS WHAT OUR RESOLUTION LAST WEEK WAS ABOUT. UM, ORDINARILY IN THE CONTEXT OF REPEAT OFFENDER, BUT REALLY FROM AN EFFICIENCY AND EFFECTIVENESS PERSPECTIVE AND TRYING TO UNDERSTAND IF WE ARE GETTING THE MOST OUT OF, UM, YOU KNOW, OF OUR CODE ENFORCEMENT AND THE PROCESSES THAT WE HAVE, UM, AND REALLY LOOKING AT IN A NEW, IN A NEW WAY, UM, BECAUSE IT, IT DOES IMPACT SO MANY THINGS, UM, IN THE COMMUNITY. AND I THINK WE'VE MADE SOME STARTS IN THAT EFFORT WITH THE SPECIAL REQUESTS WITH MY COLLEAGUES, WITH, UM, THE RESOLUTION THAT COUNCIL MEMBER FLANNIGAN SPONSORED LAST WEEK. [00:50:01] BUT I THINK THERE'S A BROADER KIND OF PERSPECTIVE THAT WE REALLY NEED TO GET AT, UM, COUNCIL MEMBER FLANIGAN. THANK YOU. YEAH, I SEE THE RESOLUTION THAT WE PASSED LAST WEEK AS, AS ENABLING AND INITIATING THAT BROADER PROCESS, THE RESULTS HAD THE TWO PARTS, ONE WAS RESPONDING TO THE AUDIT, WHICH I THINK IS A BROAD IT'S BROAD WORK. AND THEN THERE'S THE RE-IMAGINING PIECE THAT WAS THE SECOND TO BE RESOLVED. UM, YOU KNOW, THAT, THAT WORK COULD VERY EASILY BE PARTNERSHIP WORK BETWEEN THE AUDIT AND PUBLIC SAFETY COMMITTEES. AND IF WE WANTED TO KIND OF APPROACH IT THAT WAY, UM, UH, THE PUBLIC SAFETY COMMITTEE IS THE ONE THE COUNCIL DESIGNATED AS THE OVERSIGHT BODY FOR CODE. AND SO, UH, BUT THERE'S A LOT OF WORK TO BE DONE IN THAT COMMITTEE. SO I'M DEFINITELY WELCOMING THE ASSISTANCE IF THE SUGGESTION COUNCIL MEMBER AND CHAIR IS THAT FINANCE WANTS TO TAKE A DEEPER LOOK. I THINK THAT WOULD BE PERFECTLY APPROPRIATE. YEAH. I MEAN, I WANTED TO JUST GAUGE KIND OF WHERE THE BROADER INTEREST FOR COUNCIL THEN OF ENGAGEMENT, UM, IN, IN PUSHING THINGS FORWARD AND, AND ASKING DIFFERENT QUESTIONS AND BRINGING IN DIFFERENT PEOPLE TO THE, TO THE TABLE WOULD BE MAYOR ADLER AND THEN PHOTO. I THINK WHAT YOU'RE SUGGESTING MAKES, MAKES REALLY GOOD SENSE, UH, YOU KNOW, OVER THE LAST SIX YEARS BEING ON THE COUNCIL, THIS IS A KIND OF RECURRENT, UH, THEME THAT COMES BACK TO US, UH, WITH RESPECT TO CODE. UM, UH, THERE'VE BEEN A LOT OF IMPROVEMENTS, UH, IN THAT PERIOD OF TIME IN THE, IN THE CODE DEPARTMENT. UH, BUT SOME QUESTIONS SEEM TO BE RECURRENT AND I THINK THEY ARE BROADER, UH, THAN, THAN, THAN JUST, UH, THIS, UH, LOOK AT THE REPEAT OFFENDER PROGRAM. ALTHOUGH THE QUESTIONS ARE THE REPEAT OFFENDER PROGRAM ALSO SEE IT KIND OF REFER IT KINDS OF QUESTIONS AS, AS, AS WELL. AND IT COULD BE THAT, UH, THE, THE, THE SUPPORT THAT WE COULD GIVE TO CODE GOES MORE TO SYSTEMIC KINDS OF ISSUES THAT WOULD HELP, UH, EFFECTIVENESS AND EFFICIENCY ACROSS THE PROGRAMS. I LIKE THE REPORT THAT WE GOT TODAY, I HAD THE SAME QUESTIONS ABOUT THE EARLIER REPORT, JUST CAUSE IT, IT SEEMED TO BE DEALING WITH THE SAME KIND OF QUESTIONS. AND I KNOW THAT THE APARTMENT ASSOCIATION BELIEVED THAT THERE WERE ASPECTS OF THAT, THAT, UH, WERE NOT PART OF THIS, UH, AUDIT REPORT. AND I DON'T KNOW IF THAT'S BECAUSE THOSE RECOMMENDATIONS WEREN'T DEEMED TO BE VALID, OR IF THAT WAS A MORE IN DEPTH LOOK OR IF THAT LOOKED AT DIFFERENT AREAS, DON'T KNOW THE ANSWER TO THAT. BUT THE SUGGESTION WAS IS THAT THEY'RE, THEY'RE NOT NECESSARILY RIGHT ON TOP OF EACH OTHER. UH, THE, THE REPORT THAT CAME OUT AND AUDITED THE AIR, UH, ALMOST ASKS MORE QUESTIONS THAN IT ANSWERS, UH, IN TERMS OF, UH, WHAT THE KIND OF THE NEXT STEPS SHOULD BE AND HOW WE, HOW WE MAKE IT WORK. I THINK THIS PROGRAM IS A REALLY IMPORTANT FOR A PROGRAM FOR US TO COME BACK TO CAUSE SO MUCH OF WHAT WE HEAR IN OUR OFFICES ABOUT CODE COME FROM THESE KINDS OF THINGS IN TERMS OF CONSTITUENT, UH, INQUIRIES. UH, BUT THEN I ALSO KNOW JUST HOW IMPORTANT CODE HAS BEEN TO OUR COVID RESPONSE, UH, AND THE SUPPORT, UH, YOU KNOW, A LOT OF WHAT'S HAPPENING IN OUR COMMUNITY RIGHT NOW, KEEPING THE NUMBERS AS LOW AS THEY APP, UH, HAPPENS BECAUSE OUR COMMUNITY IS JUST IT ON THEIR OWN RECOGNIZING YOU CAN'T ENFORCE YOUR WAY AT THE SAME TIME. IT IS THE CODE DEPARTMENT THAT, UM, THAT IN MANY INSTANCES AS HAS HELPED SET THAT CULTURE. UH, SO I THINK CODE FOR WHAT IT'S DOING, BUT YES, THE SHORT ANSWER TO YOUR QUESTION CHAIR IS THAT, UH, I THINK THAT A MORE GLOBAL LOOK AT SYSTEMICALLY AT CODE WOULD MAKE SENSE, UH, BECAUSE I THINK THAT THERE'S PROBABLY MORE SUPPORT THAT WE COULD BRING TO THAT OPERATION, BUT I THINK IT WOULD IMPACT INDIVIDUAL PROGRAMS. THANK YOU. THANK YOU FOR RAISING THAT COUNCIL MEMBER ALTER I, AND THIS, YOU KNOW, I AM VERY INTERESTED IN SUPPORTING YOU IN THAT WORK AND THIS MAY BE A GOOD VENUE FOR DOING SO WITHIN THE AUDIT AND FINANCE. UM, WHEN WE HAD AN ISSUE ON OUR AGENDA LAST TIME I THREW OUT A FEW OF THE QUESTIONS THAT I HAVE FOR CODE AND I'LL, I'LL JUST REITERATE THEM HERE. UM, REDUCING, WE HAVE BEEN INVESTING MORE AND MORE HEAVILY EACH YEAR IN, IN OUR CODE DEPARTMENT. AND SO I THINK WE DO, I THINK IT IS PAST TIME TO REALLY EVALUATE HOW EFFECTIVE AND EFFICIENT THAT IT'S OPERATING. UM, SOME OF, SOME OF THE JUST INITIAL KINDS OF QUESTIONS THAT I WOULD ASK ARE, ARE MICRO LEVEL BASED ON THE PROGRAMS WITH WHICH I'M MOST FAMILIAR, BUT THE EXTENT TO WHICH THAT'S REALLY EXPANDED ACCESS AND THE AFTER HOURS, WHICH IS PART OF THE PROBLEM WE WERE TRYING TO SOLVE AND INCREASING THE RESOURCES, UM, HOW INCREASING THE NUMBER OF INSPECTORS, BOTH IN THE REPEAT OFFENDER PROGRAM [00:55:01] AND, AND SUBSTANDARD HOUSING MORE GENERALLY HAS EQUATED TO AN INCREASING NUMBER OF INSPECTIONS. YOU KNOW, SO THOSE ARE JUST SOME OF THE QUESTIONS THAT, THAT I WOULD BE INTERESTED IN ANSWERING ON A MICRO LEVEL THAT I THINK WOULD HELP US UNDERSTAND THAT BROADER QUESTION ABOUT SYSTEMS. YOU KNOW, HOW EFFECTIVELY ARE OUR NEW EMPLOYEES WOULD HAVE BEEN ABLE TO BE ADDED, UM, RESPONDENT IN SITUATIONS ON THE GROUND. ARE THEY WORKING MORE EFFECTIVELY? AND THEN AGAIN, SOME OF THE QUESTIONS YOU BROUGHT UP, SO WHAT DO YOU SEE AS THE NEXT STEP IN THAT? IS THAT A CONVERSATION THAT WE SORT OF THINK ABOUT BETWEEN NOW AND OUR NEXT MEETING AND MAYBE COME PREPARED WITH SOME QUESTIONS WE WOULD LIKE TO BE ADDRESSED AND THEN BUG THEM, OR SETTING UP A SPECIAL WORK GROUP. I DON'T KNOW IF YOU'VE THOUGHT THROUGH WHAT THAT LOOKS LIKE, BUT I'M GOING TO BE INTERESTED IN AND SEEING THAT I THINK MS. STOKES WANTED TO SPEAK, BUT I THINK A FIRST STEP WOULD BE THE SPECIAL REPORT THAT WE REQUESTED, WHICH SHOULD BE BACK SHORTLY. I DON'T KNOW IF THAT WILL BE IN TIME FOR US TO ACT AT THE NEXT MEETING OR NOT, BUT MS. STOKES, I WANT IT TO RECOGNIZE IT BEFORE SHE COMMENTS. I JUST WANT TO SAY I SUPPORT THAT MORE SYSTEMATIC LOOK AND LOOK AT THE STRUCTURES IN PLACE AND THE EFFICIENCIES. I DO THINK, I MEAN, I FEEL VERY COMPELLED. WE'VE BEEN WAITING A WHILE FOR THIS, UM, BEFORE TAKING ACTION ON SOME OF, SOME OF THE MORE IMMEDIATE CHANGES THAT I THINK NEED TO BE MADE WITH REGARD TO THE REPEAT OFFENDER PROGRAM. SO I'M JUST PUTTING IT UP. UM, I NOTICED THAT AT THAT WORK, I THINK NEEDS TO BE ON A DIFFERENT TIMETABLE AND I INTEND TO, TO KIND OF MOVE FORWARD WITH THAT, UM, IN A PARALLEL, PARALLEL FASHION WITH THE STRUCTURAL WORK, WHICH I AGREE ALSO NEEDS TO BE LOOKED AT. GREAT. SO, UH, I GUESS I JUST WANTED TO BRING UP A FEW THINGS. OUR NEXT ITEM I THINK IS RELATED TO THE AUDIT PLAN. AND SO THIS TIES INTO THAT DISCUSSION SOMEWHAT. UM, WE DO HAVE A SPECIAL REQUEST UNDERWAY RIGHT NOW. THAT'S REALLY LOOKING AT TRENDS IN, UM, THE NUMBER OF INSPECTORS NUMBER OF INSPECTIONS BY TYPE. I THINK THAT WILL GIVE YOU SOME INFORMATION ABOUT THE QUESTIONS THAT YOU'RE ASKING. UM, IN ADDITION, WE HAVE AN AUDIT ON THE PLAN. THAT'S NOT SPECIFIC TO CODE. IT ACTUALLY CAME OUT OF SOME WORK AT CODE, BUT IT'S COME OUT OF WORK AT MULTIPLE DEPARTMENTS, UM, SPECIFIC TO THE AMANDA SYSTEM. UM, WHICH IS, I THINK WHEN WE TALK IN THIS REPORT ABOUT SOME OF THE SYSTEMS BEING CLUNKY, AMANDA IS ONE OF THOSE CLUNKY SYSTEMS. UM, AND SO WE, WE PROPOSE AN AUDIT. THAT'S A BROADER LOOK AT AMANDA ACROSS THE BOARD, NOT, NOT JUST WITHIN CODE, BUT I THINK IT WILL IMPACT, UM, AND WE'LL LOOK AT THE USES AND CODE AND, AND WHERE IT IS CLUNKY. UM, THAT'S A TECHNICAL TERM APPARENTLY NOW. UM, THEN THE, UM, THE OTHER THING, AND SO WE, HAVEN'T DONE A KIND OF FULL AUDIT OF THE ENTIRE CODE DEPARTMENT, BUT OF CODE INVESTIGATIONS. UM, TWICE, AT LEAST SINCE I'VE BEEN IN THE OFFICE, I BELIEVE THOSE WERE IN 2006 AND 2010. UM, AND IN BOTH CASES WE HAVE FINANCE, WE HAVE RECOMMENDATIONS. AND THE SECOND VERSION OF THAT, WE SAID, THERE'S SO MUCH UNADDRESSED FROM THE FIRST AUDIT. I DON'T LOVE GOING IN AND DOING A FULL AUDIT OF SOMETHING THAT WE'VE ALREADY AUDITED, THAT HASN'T BEEN FIXED YET. SO MY PREFERENCE DOESN'T MEAN I WON'T DO IT. AND CERTAINLY IF THAT'S A LITTLE COUNSEL, WE WILL ABSOLUTELY DO IT, BUT MY PREFERENCE IS TO FOLLOW UP AND TO SEE, AND TO LOOK AT, YOU KNOW, WHAT WERE THE RECOMMENDATIONS, WHAT HAS BEEN FIXED, WHAT HASN'T BEEN FIXED, WHAT ARE THE GAPS VERSUS REDOING AN AUDIT? UM, THE REASON WE READ IT WHEN WE REDID IT IN 2010 IS BECAUSE WE SAW THAT BASICALLY NOTHING HAD BEEN FIXED. A LOT OF THINGS HAD BEEN CHANGED. UM, SO, YOU KNOW, WHY WERE WE STILL HAVING THE SAME OUTCOMES IF THERE HAD BEEN A BUNCH OF CHANGES? SO WE WENT IN AGAIN, UM, AND I THINK WE HAVE THE SAME FINDINGS THE SECOND TIME AROUND OUR TONE GOT A LOT HARSHER IF Y'ALL RECALL. UM, THERE WERE DEFINITELY SOME HAVE NOW BEEN MULTIPLE MANAGEMENT CHANGES THAT THERE WERE SOME MANAGEMENT CHANGES AT THE TIME OF THE AUDIT. UM, SO, SO AS I LOOK BACK, WE CAN DO THAT AUDIT AND WE'LL HAVE NEW FINDINGS. MAYBE WE NEED TO LOOK AT WHAT WE ORIGINALLY RECOMMENDED AND HOW WE, HOW THOSE HAVE PLAYED OUT. SO THANK YOU SOAKS. UM, I JUST WANT TO BE CLEAR THAT I'M NOT TALKING ABOUT GETTING IN THE WAY OF MAKING CHANGES TO REPEAT OFFENDER. I'M TALKING ABOUT SORT OF BROADER EFFECTIVENESS AND EFFICIENCY PART AND THE PIECE OF THAT, THAT REQUIRES COUNCIL TO BE PUSHING AT IT, UM, IN PARALLEL TO WHAT MAY ALREADY BE IN THE WORKS. UM, THE AUDITORS, I THINK, WOULD JUST BE REPEATING WORK THAT MAY ALREADY BE DONE. THAT'S, YOU KNOW, I THINK THERE'S ALSO SOME INTERNAL WORK THAT IS BEEN DONE THAT WE CAN BUILD OFF OF THAT WILL HELP US TO THINK ABOUT HOW WE WANT TO FRAME THE QUESTIONS, [01:00:01] UM, AND THAT WE NEED TO DO IN A DIFFERENT WAY. WHAT I WAS HOPING TODAY WAS TO GET A SENSE OF WHO ON THE COMMITTEE, UM, WANTS TO WORK ON IT. I KNOW THAT, UM, YOU KNOW, COUNCIL MEMBER ELLIS IS ALSO INTERESTED. SHE'S NOT ON THIS COMMITTEE, UM, AND WE CAN SORT OF CONVENE AND TRY AND WORK THROUGH STUFF AND WE CAN USE, UM, THIS VENUE, UM, OR AS APPROPRIATE, UH, PUBLIC SAFETY COMMITTEE, UM, FOR THINGS THAT NEED TO BE PUBLIC. I THINK THERE'S A LOT OF THINGS THAT WE HAVE TO DO TO GET OUR QUESTIONS STRAIGHT AND, UM, REALLY DIVE IN THAT, UM, MAY NOT YET BE READY, UM, FOR COMING BEFORE COMMITTEE UNTIL WE GET THE PROJECT BACK. UM, AND UNTIL WE HAVE A CHANCE TO REVIEW SOME OF THOSE OTHER OTHER PIECES, UM, AND I JUST THINK IT'S, UH, IT'S, IT'S SOMETHING THAT MAY RISE TO THE LEVEL OF SOMETHING LIKE THE ZUCKER REPORT AT THE END. I'M NOT INTERESTED IN REINVENTING THE DATA AND THE WHEEL, BUT I THINK, UM, FROM, FROM WHAT I'M AWARE OF AT THIS POINT IN TIME, THERE ARE SOME REAL OPPORTUNITIES FOR US TO PUSH FORWARD ON THAT EFFECTIVENESS AND EFFICIENCY AND TO ASK QUESTIONS IN DIFFERENT WAYS, UM, YOU KNOW, WORKING WITH OUR LEADERSHIP, UM, BUT ALSO, YOU KNOW, REALLY THINKING SORT OF HOLISTICALLY ABOUT IT. UM, YOU KNOW, WE'VE ADDED A LOT OF RESOURCES AS COUNCIL MEMBER TOVO HAS MENTIONED. UM, AND YET, YOU KNOW, THERE'S STILL A QUESTION ABOUT WHETHER WE'RE GETTING THE EFFECTIVENESS, ET CETERA. UM, AND I THINK WE NEED TO BE DIVING INTO THAT. UM, SO, UM, I HEARD COUNCIL MEMBER FUND AGAIN, EXPRESS INTEREST IN COUNCIL MEMBER TOVO IF ANYONE ELSE, UM, DECIDES THAT THEY ARE COUNCIL MEMBER POOL. OKAY. UM, AND THEN I I'LL HAVE TO JUST FIGURE OUT, UM, FROM A QUORUM PERSPECTIVE WITH THE COMMITTEE, UM, OR NOT THE COMMITTEE, UM, HOW TO, HOW TO ADDRESS THAT. UM, BUT I APPRECIATE THE INTEREST AND WE CAN BE MOVING FORWARD. AND AGAIN, THIS IS NOT MEANT TO BE SEPARATE FROM ADDRESSING THE SPECIFIC OF THIS, UM, PARTICULAR AUDIT. UM, I WILL JUST ADD THAT I DO HAVE SOME HESITANCY ABOUT MOVING TO A CITYWIDE REGISTRATION PROGRAM WHEN WE DON'T SEEM ABLE TO DO THE COMPLAINT DRIVEN. I'M NOT THAT EXPANDING THE WORK OF CODE, UM, WHEN WE HAVE IDENTIFIED LIFE AND SAFETY ISSUES THAT WE HAVEN'T BEEN ABLE TO ADDRESS IS THE MOST PRODUCTIVE, UM, DIRECTION, BUT I'M OPEN TO HAVING THOSE CONVERSATIONS AND LEARNING MORE ABOUT WHAT OTHER OR CITIES HAVE DONE. SO THANK YOU. THERE'S ONE QUESTION I REALIZED I FORGOT TO ASK, UM, FROM MY RECOLLECTION OF THE, OF SOME OF THE DEBATE ON THE DICE BEFORE TEN ONE, BETWEEN REGISTERING A SMALLER NUMBER OF REPEAT OFFENDERS VERSUS A CITYWIDE REGISTRATION PROGRAM. AND I THINK THERE WERE GOOD POINTS MADE BY EVERYONE IN THAT. AND IT WAS, PEOPLE WERE ALL TRYING TO GET TO THE PLACE, THE BEST PLACE THEY COULD. IF I REMEMBER IT RIGHT, ONE OF THE QUESTIONS WAS, WELL, WE NEED TO GET AS MANY REPEAT OFFENDERS INTO THE PROGRAM AS WE CAN. SO THAT'S WHY YOU WANT TO CAST A WIDER NET, BUT THEN THERE WAS AN ARGUMENT LET'S GET THE DANGEROUS PROPERTIES IN THE PROGRAM AND FOCUS ON THOSE AND SHOW THAT WE CAN REALLY GET THOSE PROBLEMS FIXED. AND I THINK THAT WAS AT LEAST A PART OF THE DEBATE THAT I REMEMBER NOW THAT WE HAVE THIS AUDIT. I'M INTERESTED IN THE AUDITOR'S REASONING FOR THE RECOMMENDATION HERE, THAT I THINK SHOWS THAT IN PART, WE HAVE SOME REPEAT OFFENDERS IN THE PROGRAM THAT WE HAVEN'T BEEN ABLE TO GET THE ISSUES FIXED. EVEN WITH THAT SMALLER NUMBER. WHY IS IT THEN THAT THE RECOMMENDATION WOULD BE TO THEN DEDICATE SCARCE RESOURCES TO INSPECTING LOTS OF PROPERTIES, CITYWIDE, IF WITH THE SCARCE RESOURCES WE HAVE, WE HAVEN'T BEEN ABLE TO GET A SMALL NUMBER OF PROPERTIES WHERE THERE ARE DANGEROUS TO BE FIXED, AND I'M SURE YOU HAVE A GOOD ANSWER TO IT. IT JUST DOESN'T. I JUST WANT TO UNDERSTAND GIVEN OUR SCARCE RESOURCES, IF WE CAN'T GET THESE FIXED, WHAT THE REASONING IS FOR RECOMMENDING THAT WE START GOING CITY WIDE WITH IT. YES. FANTASTIC POINTS ALL AROUND. SO, UM, ON THE, THE QUESTION OF WHY WOULD A CITY MAYBE WANT TO BROADEN TO REGISTERING ALL, UH, RENTAL PROPERTIES IN SOME WAYS IT WOULD ADDRESS SOME OF THE RISKS THAT WE'VE NOTED? SO ONE MAJOR RISK IS THAT, YOU KNOW, RIGHT NOW WE'RE HAVING A HARD TIME IDENTIFYING THE BAD ACTORS THAT SHOULD BE PART OF THIS PROGRAM AND GETTING THEM ENROLLED BECAUSE OF OUR SYSTEM LIMITATIONS AND OTHER ISSUES. IF YOU WERE TO REQUIRE FULL RENTAL REGISTRATION, I THINK HAVING THAT INVENTORY [01:05:01] OF WHAT ALL YOUR RENTAL PROPERTIES ARE, WOULD PROBABLY BE MORE RELIABLE. YOU WOULD, I MEAN, YOU WOULD CATCH THEM ALL. AND IN THEORY, YOU WOULD AT LEAST KNOW WHAT ALL OF THEM ARE, AND YOU GOTTA AT LEAST GET SOME NOMINAL AMOUNT OF MONEY FROM EACH OF THEM AND HAVE SOME ON WHAT THE PROPERTY RECORDS ARE AND HAVE KIND OF MORE COMPLETE RECORDS ON, ON THESE RENTAL PROPERTIES. SO IT WOULD, YOU KNOW, MITIGATE THAT RISK TO SOME EXTENT. UM, AND WE ALSO POINT OUT THE PEER CITY THING JUST BECAUSE WE DO A LOT OF PEER CITY ANALYSIS IN OUR WORK. AND I WOULD SAY IT'S PRETTY RARE TO, TO FIND A CASE WHERE AUSTIN IS THE CLEAR OUTLIER IT'S USUALLY OUR PROGRAM IS, YOU KNOW, KIND OF SIMILAR TO OTHER PROGRAMS IN THIS CASE, GIVEN OURS IS SO DIFFERENT, IT SEEMS WORTH NOTING. UM, BUT YOU'RE RIGHT. BUT I THINK THE IN THEORY, IT'S A GREAT IDEA TO SAY, WHY REGULATE EVERYONE WHEN, WHEN MAYBE MOST ARE FINE OR MANY ARE FINE, SHOULDN'T WE FOCUS OUR LIMITED RESOURCES ON JUST THE BAD APPLES HERE, WHICH IS KIND OF THE MODEL WE HAVE. UM, I THINK THAT, I THINK THAT IN THEORY WAS A GOOD IDEA. REGARDLESS, IF YOU REGISTER EVERYONE OR IF YOU HAVE THE KIND OF BAD ACTOR MODEL, WE'RE GOING TO HAVE TO ESCALATE ENFORCEMENT FOR THE PROPERTIES THAT SIMPLY AREN'T WANTING TO COMPLY AND ADDRESS THEIR, THEIR CODE VIOLATION. SO I THINK, UM, KIND OF BEING MORE PUNITIVE WITH THOSE THAT THAT REALLY NEEDED IS CRITICAL REGARDLESS OF THE MODEL. AND I THINK WE'VE SEEN SOME EVIDENCE THAT, THAT, THAT IS A GOOD THING, UM, WITH THE PROPERTY SUSPENSIONS THAT HAPPENED THIS SUMMER, DANIEL CORRECT ME IF I'M WRONG, BUT, UM, SO WE DIDN'T HAVE THAT PROCESS IN PLAY. UH, YOU KNOW, THE WHOLE TIME THE PROGRAM'S BEEN AROUND, WE GOT IT UP AND RUNNING THIS SUMMER. WE, WE SAID TO SIX PROPERTIES, I THINK IT WAS, WE'RE GOING TO MOVE FORWARD WITH THIS PROPERTY SUSPENSION. IF YOU DON'T GET ON BOARD AND ADDRESS THESE CODE VIOLATIONS. AND FIVE OF THEM DECIDED THAT IT WAS TIME TO ADDRESS THE CODE VIOLATIONS. AND I THINK ONLY ONE PROPERTY DID WE ACTUALLY EXECUTE THE SUSPENSION. SO, UM, YEAH, WHETHER WE STICK WITH THE MODEL WE'RE IN, WHERE WE'RE ONLY GOING AFTER THE BAD ACTORS, WHICH MIGHT MAKE IT. SO IT'S STILL HARD FOR US TO IDENTIFY THOSE THAT NEED TO BE IN THE PROGRAM OR WHETHER WE GO TO THE FULL RENTAL REGISTRATION, THE ESCALATED ENFORCEMENT IS GOING TO BE CRITICAL, BOTH MODELS PREVENTS OR PRESENT SOME ADVANTAGES AND DISADVANTAGES. SO I THINK WE ARE GOING TO, UM, NEED TO MOVE ON. I JUST WANT TO REITERATE THAT WE HAVE THE SAME ISSUE WITH STRS, WHERE THINGS ARE NOT BEING ESCALATED TO ENFORCEMENT. AND SO THEY'RE NOT BEING, YOU KNOW, PEOPLE ARE NOT COMPLYING TO ENFORCEMENT IS NOT HAPPENING WITH THAT ESCALATION WHEN THAT ESCALATION OPTION IS THERE. AND WE HAVE FOR MANY YEARS BEEN ASKING FOR THAT TO HAPPEN. UM, SO I DO NEED A MOTION ON THIS ITEM. IF SOMEONE WOULD LIKE TO MAKE A MOTION FOR THIS AUDIT, MARY YOU'VE DONE ME ACCEPTANCE. THANK YOU. DO YOU HAVE A SECOND FROM COUNCIL MEMBER POOL? ALL THOSE IN FAVOR. RAISE YOUR HAND. COME TO MY . WE CAN'T SEE YOU. ARE YOU VOTING? YES, SIR. US. OKAY. SO THAT'S UNANIMOUS ON THE DIOCESE. UM, SO WE'VE GOT APPROVAL PASSES. WE'RE GOING [3. The Fiscal Year 2021 Proposed Draft Audit Plan (City Auditor’s Office)] TO MOVE TO ITEM NUMBER THREE, THE DRAFT AUDIT PLAN, WHICH I BELIEVE WE ARE, UM, INTERNET DESK. OKAY. IT'S KNOCKED DOWN. CAUSE WE CAN HEAR YOU. I'M SURE IT WAS DOWN FOR A MINUTE. AND YOU HAD RECOGNIZED ME FOR A COMMENT AND THEN AFTER, CAUSE AFTER COUNCIL MEMBER CASARA AND THEN I THINK HE WENT ON TO THE VOTE. I JUST WANTED TO SIMPLY AGREE WITH SOME OF THE SENTIMENT EXPRESSED THAT EXPANDING, EXPANDING THE RESPONSIBILITIES OF CODE OR EXPANDING THE PROGRAM TO INCLUDE RENTAL REGISTRATION AT THIS POINT WOULD PROBABLY NOT BE BIASED GIVEN THAT GIVEN SOME OF THE CONCERNS THAT ARE RAISED. SO IN, IN MY DISCUSSION OF THAT, IT WAS TO PROVIDE A HISTORICAL PERSPECTIVE AND TO SAY, I THINK THAT STILL IS A PROGRAM WORTH CONSIDERING. SO I APPRECIATE THE AUDIT. I APPRECIATE THE AUDITOR HIGHLIGHTING IT, BUT YOU KNOW, FROM WHERE I SIT RIGHT NOW, I'M GOING TO BE VERY RELUCTANT TO EXPAND THE RESPONSIBILITIES OF CODE UNTIL SOME OF THESE STRUCTURAL ISSUES GET ADDRESSED. AS YOU NOTED AT SHORT TERM RENTALS, UM, WITHIN THIS PROGRAM WITHIN SOME OTHERS ADDING A RESOURCES, HASN'T MADE THEM OPERATE MORE EFFICIENTLY OR EFFECTIVELY. AND SO THOSE ARE, THOSE ARE SOME KEY CONCERNS THAT I WOULD LIKE TO SEE TO SOLVE FIRST. THANK YOU. SO WE'RE GOING TO TAKE UP [01:10:01] ITEM THREE, THAT WAS DRAFT AUDIT PLAN. AND I BELIEVE THAT THE AUDITOR WILL SPEAK BRIEFLY TO THAT AND WE'VE ALL HAD AN OPPORTUNITY TO REVIEW IT. UM, OUR TASK TODAY IS TO, UM, PUT FORWARD A MOTION TO THE COUNCIL, ASSUMING THAT WE APPROVE IT. UM, I'LL LET, UH, THOUGHT AT OUR SPEECH BRIEFLY FIRST. GREAT. UM, SO I DO HAVE A PRESENTATION TO THIS, SO I WOULD GIVE IT A SECOND. IT'S COMING. UH, I DID WANT TO SAY ONE THING, JUST CRAFTING MYSELF. I THINK I SAID 2006 AND 2010 AS THE PRIOR CODE AUDIT. THAT WAS ACTUALLY, UM, IF YOU ADD 10 YEARS TO BOTH OF THOSE, I THINK THAT WE HAD A 2010 ON IT AND A 2016 ON IT. SO THOSE ARE THE LAST TIME WE'VE LOOKED AT CODE AND, UM, THAT IS RELEVANT BOTH TO THAT AND TO, UM, THIS PRESENTATION ON THE AUDIT PLAN. AND I WILL TELL YOU HI, AND JUST TO SAY THAT, UM, SO NEXT SLIDE PLEASE. UM, SO I ALWAYS LIKE TO REMIND YOU ALL OF WHY WE BRING THIS AUDIT PLAN TO YOU. THIS IS WHY THERE THERE'S A REQUIREMENT OF CODE THAT WE BRING THE AUDIT PLAN, UM, TO THE COUNCIL FOR REVIEW AND THEN SPECIFIC UNDER THE AUDIT COMMITTEE THAT WE, UH, BRING IT TO THE AUDIT COMMITTEE TO MAKE A RECOMMENDATION TO THE FULL COUNCIL. SO WE DO THIS EVERY YEAR. UM, NEXT SLIDE PLEASE. UM, THIS YEAR WE'VE TALKED ABOUT HOW WE HAVE A SHORTER LIST OF PROJECTS THAN SOME YEARS, UM, DUE TO STAFFING CONSTRAINTS IN MY OFFICE AND SOME OTHER RESPONSIBILITIES THAT WE HAVE. UM, I DID WANT TO POINT OUT, SO LAST TIME WE PRESENTED THE DRAFT AUDIT PLAN OR THE, THE, THE EARLY PROPOSED PLAN, I GUESS. UM, AND WE MADE SOME CHANGES TO THAT. UM, THE FIRST PROJECT HERE REIMAGINING PUBLIC SAFETY. SO WE HAD ORIGINALLY TALKED ABOUT DOING A PROJECT ON CIVILIAN STAFFING THAT COULD STILL BE THE WORK THAT WE DO, BUT SINCE WE PROPOSE THAT WORK, WE'VE BEEN MEETING WITH CITY MANAGEMENT, UM, TO TRY TO IDENTIFY AN AREA WHERE WE CAN ADD VALUE, UM, WHERE IT MAKES SENSE AND WHERE IT DOESN'T OVERLAP WITH OTHER WORK THAT'S BEING DONE, BECAUSE THERE IS SO MUCH WORK BEING DONE IN THIS AREA. SO, UM, WE ARE STILL WORKING ON THAT. UM, I WOULD, IF, IF THIS MOVED FORWARD TO THE FULL COUNCIL, I WOULD HAVE THAT TOPIC IDENTIFIED. UM, YOU KNOW, I WOULD FINISH MY, MY WORK WITH CITY MANAGEMENT AND IDENTIFY A SPECIFIC TOPIC BEFORE, UM, COUNCIL HAD THE PLAN TO PUT ON. SO THAT ONE IS A LITTLE WEIRD AND THAT WAS KIND OF A PLACEHOLDER. UM, THE OTHER AUDITS HAVEN'T CHANGED MUCH ON THIS PAGE. UH, NEXT SLIDE PLEASE. AND THEN HERE, ONE THING THAT WE DID, UM, I THINK WE HEARD FEEDBACK FROM A FEW FOLKS THAT, UM, HAVING THEM IN PUBLIC HEALTH RESPONSE, KIND OF A LESSONS LEARNED OR, UH, A AFTER ACTION, UM, ON RESPONSE TO THE CORONAVIRUS, UM, COULD BE HELPFUL FOR FUTURE SIMILAR INCIDENTS, INCIDENTS. AND SO, UM, WE'VE COMBINED THAT LOOKING BOTH AT KIND OF OUR RESPONSE RELATED TO THE COMMUNITY AND OUR RESPONSE INTERNALLY RELATED TO CITY EMPLOYEES. UM, WE WOULD NOT DO THAT PROJECT IMMEDIATELY. OBVIOUSLY WE'RE STILL IN RESPONSE MODE AND WE DON'T WANT TO GET IN THE WAY OF OUR, OUR FOLKS ON THE FRONT LINES RIGHT NOW. UH, BUT IT COULD BE SOMETHING THAT WE WOULD, OR IT WOULD BE SOMETHING THAT WE DO IN THE SPRING OR LATER IN THE FISCAL YEAR, UM, TO PROVIDE SOME INSIGHT INTO WHAT WE COULD DO DIFFERENTLY. UM, AND THEN, UM, I BELIEVE THE, THE REST OF THE PROJECTS WHERE WE'RE ALREADY ON THE PLAN. NEXT SLIDE, I THINK IT'S, I THINK IT'S THE END. UM, SO ANY QUESTIONS, COMMENTS, CONCERNS ABOUT, UM, YOU'RE HAPPY TO ADDRESS, UM, AND I JUST, I THINK YOU SKIPPED THE, UM, THE AUDITS THAT ARE STILL IN THE WORKS, WHICH ARE THERE. UM, AND I JUST WANT TO FLAG THAT WE ARE, UM, DOING A SLIGHTLY REVISED AND REDUCED AUDIT PLAN THIS YEAR, UM, BECAUSE OF THE EXTENSIVE RESPONSIBILITIES THAT THE AUDITOR'S OFFICE HAS WITH, UM, REDISTRICTING AND, UM, SOME STAFF REBUILDING THAT NEEDS TO HAPPEN FOR THAT. YES. I'M NOT SURE HOW I MISSED THAT SLIDE, BUT YES, WE DO HAVE A FEW CARRY OVER PROJECTS. SOME THAT WILL COME NEXT MONTH. SO WE DON'T REALLY ELABORATE OR SPEND LOT OF TIME TALKING ABOUT THOSE. SOME THAT WILL COME LATER, I'M LOOKING AT INTER-LOCAL AGREEMENTS, TECHNOLOGY, PROCUREMENT, AND CITY RECRUITING, HIRING. UM, SO I THINK IF THERE ARE, DOES ANYONE HAVE ANY COMMENTS OR QUESTIONS, IF NOT, I WOULD NEED TO ENTERTAIN A MOTION TO FORWARD THIS ON TO THE FULL COUNCIL BECAUSE REMEMBER FLANAGAN MAKES THAT MOTION SECONDED BY MAYOR ADLER. SO THE AUDIT PLAN WILL NOW MOVE ON TO COUNCIL FOR WHENEVER THAT COMES BEFORE US. UM, EITHER LATER THIS MONTH OR NEXT MONTH, DEPENDING ON YOUR TIMING. OKAY. THANK [4. FY20 Annual City Auditor’s Integrity Unit Report (City Auditor’s Office)] YOU. SO WE'LL MOVE TO ITEM FOUR, THE ANNUAL CITY AUDITORS INTEGRITY UNIT REPORT. SURE. DO YOU WANT TO MAKE SURE THAT YOU ACTUALLY CALL FOR THE VOTE ON THAT? OH, I'M SORRY. DID I CALL, BUT THANK YOU. UM, [01:15:02] ARE THERE ANY OBJECTIONS TO VOTING ON THAT? YOU SEE THE MAYOR SMILING? CAUSE HE KNOWS HOW MUCH FUN THIS IS. IT'S GOOD FOR US ALL TO CHAIR. I SAID, SEE NO OBJECTIONS THAT PASSES UNANIMOUSLY WITH THE WHOLE COMMITTEE ON THE DICE OR DULL DIAS. THANK YOU. SO WE WILL NOW MOVE ON TO ITEM FOUR, THE CITY AUDITOR'S INTEGRITY UNIT REPORT. GREAT. AND WE SHOULDN'T HAVE SLIDES FOR THIS AND WE NEED BRIAN WHO I DON'T SEE YET, BUT I'M SURE HE'S COMING THERE. HE IS. MMM. ARE THERE CURRENT, CAN YOU HEAR ME? I CAN HEAR YOU. I CAN'T SEE YOU. I'M NOT SURE WHY THAT IS. I DON'T THINK YOU'RE IN CONTROL OF THAT. SO JUST GIVE IT A SEC AND THEN, UM, IF WE CAN BRING IN SLIDES, THAT'D BE GREAT TOO. OH, WE CAN SEE YOU. EXCELLENT. WE CAN ALMOST SEE YOUR SLIDES. THERE THEY GO. PERFECT. ALRIGHT. UM, THANK YOU, MARIN COUNCIL MEMBERS FOR THE OPPORTUNITY TO SPEAK TODAY AND I'LL BE GOING OVER THE ACTIVITIES OF THE INTEGRITY UNIT FROM THE OTTERS OFFICE FOR FISCAL YEAR 20. UH, NEXT SLIDE. UH, SO A QUICK AGENDA FOR THESE SLIDES TODAY, WE'RE GOING TO GO OVER THE ALLEGATION TRENDS THAT MY OFFICE HAS RECEIVED. UH, THE INVESTIGATIONS THAT WE COMPLETED IN THE LAST YEAR INVESTIGATIONS WE CURRENTLY HAVE ONGOING. AND THEN I ALSO LIKE TO BRING UP THE RECENT HOSTILE PUBLIC LIBRARY INVESTIGATION THAT DID COME OUT ON THE 5TH OF OCTOBER. SO IT'S TECHNICALLY NOT A FISCAL YEAR, 2020, BUT SINCE IT WAS SUCH A BIG INVESTIGATION, UH, THAT HAD SUCH LARGE IMPACTS, I'D LIKE TO BRING IT UP IN CASE I COULD ANSWER ANY QUESTIONS THAT YOU MIGHT HAVE ABOUT THE INVESTIGATION. ALL RIGHT, NEXT SLIDE. UH, SO OVER THE COURSE OF THE FISCAL YEAR, THE OFFICE TOOK IN 282 ALLEGATIONS. NOW THAT'S A SLIGHT DIP FROM WHAT WE SAW LAST YEAR, WHICH WAS A RECORD HIGH OF 333 ALLEGATIONS. BUT WE THINK THIS DIP IS DIRECTLY CORRELATED TO ABOUT HALF THE CITY WORKFORCE SHIFTING TO A WORK FROM HOME ENVIRONMENT. WHEN I RAN NUMBERS IN EARLY MARCH, RIGHT BEFORE WE SHIFTED TO GO HOME, WE WERE ON PACE TO HAVE ABOUT 350 ALLEGATIONS COME IN THIS YEAR. AND THEN ONCE, UH, THE PANDEMIC HAD, CAN BE STARTED WORKING FROM HOME. THAT NUMBER DRASTICALLY DECREASED THROUGH MOST OF THE SUMMER. AND WE FINISHED WITH 282. UH, I DON'T THINK THIS IS A REFLECTION ON, UM, LESS FRAUD WASTE AND ABUSE CONCERNS IN THE CITY. JUST THAT, UM, BOTH CITY EMPLOYEES HAVE LESS OF AN OPPORTUNITY TO SEE THE RED FLAGS THAT MIGHT CAUSE THEM TO REFER AN ALLEGATION TO OUR OFFICE. NEXT SLIDE. AND THEN LOOKING AT THE ALLEGATIONS THAT, UH, DID COME IN, UH, OUR MOST COMMON ALLEGATIONS, BUT THEY'RE 24%, UH, COME FROM TWO GROUPS. UH, WE REFER TO ONE IS JUST HR RELATED ISSUES. AND THEN THE SECOND GROUP IS HARASSMENT DISCRIMINATION, RETALIATION, WHICH IS SORT OF A SUBSET OF HR ISSUES BECAUSE, UM, REGARDLESS OF WHICH GROUP IT'S IN, WE WOULD ULTIMATELY REFER THOSE ALLEGATIONS EITHER TO THE HUMAN RESOURCES DEPARTMENT OR TO THE VARIOUS CITY DEPARTMENTS THAT HAVE THEIR OWN HR FUNCTION. UH, WHEN YOU PUT THOSE TWO GROUPS TOGETHER, THEY REPRESENT 24% OF THE ALLEGATIONS WE RECEIVED. UH, THE SECOND LARGEST GROUP OF, UH, ALLEGATIONS THAT CAME INTO OUR OFFICE WAS DEPARTMENT OR OPERATIONAL ISSUES. AND THAT WAS 19% OF THE ALLEGATIONS. UM, MOVING OVER TO REPORTER INSIGHTS. UH, WE NOTED THAT 59% OF OUR REPORTERS OF ALLEGATIONS CHOSE TO BE ANONYMOUS. AND THAT LINES UP WITH BEST PRACTICES WHEN YOU'RE RUNNING A FRAUD, WASTE AND ABUSE, UM, HOTLINE OR REPORTING CHANNELS IS YOU WANT TO MAKE SURE THAT, UH, PEOPLE KNOW THAT THEY CAN REPORT ANONYMOUSLY. IT'S REALLY ENCOURAGED THEM TO REPORT WHEN THEY SEE A RED FLAG OF FRAUD, WASTE AND ABUSE, AND, YOU KNOW, ROUGHLY 60% OF OUR REPORTERS TOOK ADVANTAGE OF THAT, UM, FEATURE IN OUR REPORTING SYSTEM. AND THEN WE ALSO WOULD LIKE TO ALWAYS LOOK AT OUR REPORTING METHODS BECAUSE IT'S IMPORTANT TO MAKE IT AS EASY AS POSSIBLE FOR PEOPLE TO REPORT ALLEGATIONS TO YOU. IF YOU WANT TO REALLY HEAR WHAT'S GOING ON, UH, AND YOUR JURISDICTION. AND, UH, OUR MOST COMMON METHOD WAS OUR ONLINE REPORTING FORM. 48% OF OUR ALLEGATIONS CAME FROM THAT 17% CAME FROM OUR INTEGRITY UNIT EMAIL, WHICH IS A, AS LONG AS YOU CREATE AN A, YOU KNOW, A NEW EMAIL THAT DOESN'T DIVULGE YOUR IDENTITY, YOU CAN REPORT TO US ANONYMOUS ANONYMOUSLY USING THE EMAIL, JUST LIKE YOU CAN ON THE REPORTING FORM. AND THEN 14% USE THE WHISTLEBLOWER HOTLINE. AGAIN, YOU CAN REPORT IT ANONYMOUSLY ON THE WHISTLEBLOWER HOTLINE, OR YOU CAN IDENTIFY YOURSELF, ESPECIALLY IF YOU WANT SOMEONE FROM THE UNIT TO CALL YOU BACK AND DISCUSS THE MATTER WITH YOU. I'M MOVING ON TO THE ALLEGATIONS TO RECEIVE THAT ARE LIKE THE CORE OF OUR FUNCTION THAT ARE AT THE HEART OF OUR JURISDICTION. UM, WE RECEIVED 26 ALLEGATIONS OF THEFT IN FISCAL YEAR 20. NOW THAT THEFT, UH, REPRESENTS, UH, TIMESHEET THEFT, ASSET THEFT, OR EVEN CASH THEFT. UM, A LOT OF TIMES THAT'LL ALSO BE CRIMINAL. SO WE'LL REFER THAT TO APD, BUT THE SAME ACTIONS THAT CAN BE CRIMINAL CAN ALSO, UM, VIOLATE CITY CODES. SO WE WILL STILL HANDLE AN ADMINISTRATIVE INVESTIGATION, EVEN THOUGH WE'VE REFERRED THE CRIMINAL ASPECT OF THAT THEFT TO APD. WE ALSO RECEIVED, UH, THE NEXT MOST COMMON WITHIN OUR JURISDICTION WAS WASTE. WE HAD 18 WASTE ALLEGATIONS AND THEN 15 MISUSE AND 15 ABUSE ALLEGATIONS [01:20:01] AND A CONFLICT OF INTEREST ALLEGATIONS. UM, NEXT LINE. UH, SO MOVING ON TO THE ACTUAL FULL INVESTIGATIONS WE REPORTED ON THIS YEAR, WE COMPLETED 14 INVESTIGATIONS. THAT'S ACTUALLY THE EXACT SAME NUMBER OF INVESTIGATIONS WE COMPLETED FROM FISCAL YEAR 19 OF THOSE 14, 12 WERE SUBSTANTIATED AND PRODUCED A PUBLIC REPORT OR A FILING WITH THE ERC. THE REMAINING TWO, A ONE WAS INCONCLUSIVE AND ONE WAS UNSUBSTANTIATED. SO THERE'S NO PUBLIC REPORT. IN THOSE CASES, WE JUST COMMUNICATE THE RESULTS OF THOSE INVESTIGATIONS TO THE RELEVANT DEPARTMENT, SO THAT THEY'RE AWARE OF WHAT WE HEARD AND WHAT STEPS WE TOOK TO LOOK INTO THE ISSUE. NEXT SLIDE. SO OF THE 12 PUBLIC REPORTS, UH, THEY SPANNED, UH, UM, ALL OF THE DEPARTMENTS YOU SEE IN FRONT OF YOU, IT'S KIND OF A, A DECENT, UM, UH, SWATH OF THE CITY. UH, THE MOST COMMON VIOLATION TYPE OF THOSE REPORTS WAS MISUSED, BUT WE STILL HAD, UM, ALL THE OTHER CORE JURISDICTIONAL, UM, VIOLATIONS THAT WE LOOK INTO, LIKE ABUSE AND WASTE AND FRAUD. AND THEN IN EVERY CASE WHERE WE'VE HEARD ABOUT, UH, ACCOUNTABILITY ACTION, THE DEPARTMENT ULTIMATELY AGREED WITH OUR FINDINGS AND TOOK SOME FORM OF ACCOUNTABILITY ACTION. THERE ARE A COUPLE WHERE WE'RE STILL WAITING ON CONFIRMATION ON WHAT SORT OF ACCOUNTABILITY ACTION WAS TAKEN. BUT LIKE AS MENTIONED ON THE ONES WE'VE HEARD ABOUT, UH, THERE WAS ALWAYS AN AGREEMENT AND THEN A KIND OF A DAILY ACTION TAKEN NEXT LINE. ALRIGHT, MOVING ON TO ONGOING INVESTIGATIONS THAT CARRY OVER FROM THIS YEAR, AND WE'LL PROBABLY BE FINISHED IN THE NEXT FISCAL YEAR, CURRENTLY HAVE 11 OPEN INVESTIGATIONS, THOSE SPAN SEVEN DIFFERENT DEPARTMENTS. AND AGAIN, THEY HIT THE SAME CORE JURISDICTIONAL ISSUES THAT WE HAVE OF WASTE. UH, GIFT SOLICITATION STAFFED WOULD BE SUPPOSITION, CONFLICT OF INTEREST AND MISUSE OF CITY RESOURCES NEXT LINE. UH, AND THEN THAT THIS WILL BE MY LAST LINE BEFORE I OPENED IT UP TO QUESTIONS. BUT, UH, JUST A QUICK RECAP OF THE HOUSE AND PUBLIC LIBRARY INVESTIGATION. I UNDERSTAND MOST OF YOU ARE FAIRLY AWARE OF THIS, SO I WON'T GET INTO TOO MANY DETAILS, BUT IT DID COME OUT JUST BARELY INTO FISCAL YEAR 21 ON OCTOBER 5TH, IN SOME WE IDENTIFIED APPROXIMATELY $1.3 MILLION, INSTALLING TONER, AT LEAST $18,000 IN OTHER ITEMS THAT, UH, WANT TO, UH, AUSTIN PUBLIC LIBRARY AND PLACE STOLE. AND THAT WE ALSO IDENTIFIED BASICALLY THAT THAT SUM TOTAL OF VALUE IS ALSO WASTED BY LIBRARY MANAGERS WHO OVERSAW THIS PURCHASING PROCESS, BECAUSE THERE WAS ENOUGH RED FLAGS AND, AND SKIPPED PROCEDURAL STEPS THAT, UH, THE, THE THEFT OF THE ONE EMPLOYEE SHOULD HAVE BEEN NOTICED EARLIER. UM, SO THAT CONCLUDES MY PRESENTATION. AND I'M HAPPY TO TAKE ANY QUESTIONS YOU MIGHT HAVE. THANK YOU, BRIAN. DOES ANYONE HAVE ANY QUESTIONS? MAYBE WE CAN GO OFF THE SCREENS. I CAN ANYONE HAVE ANY QUESTIONS? OKAY. MS. STOKES, DO WE NEED TO ACCEPT THIS REPORT? UM, YOU DON'T HAVE TO ACCEPT IT. WE'RE REQUIRED TO PRESENT IT TO YOU, BUT YOU DON'T HAVE TO ACCEPT IT. ALL RIGHT. I JUST, THIS UP, I THINK I'LL TAKE A MOTION. DO I HAVE A MOTION TO ACCEPT THIS REPORT FROM COUNCIL MEMBER POOL? UH, SECONDARY BY COUNCIL MEMBER TOOK OVER FLANAGAN FLANAGAN SECONDS. IT I'M HEARING NO OBJECTIONS. THAT REPORT IS ACCEPTED. THANK YOU. UM, [5. Bylaws changes Downtown Commission (City Clerk’s Office)] THEN NEXT ITEM IS THE BYLAWS CHANGES FOR THE DOWNTOWN COMMISSION. UM, I DON'T KNOW IF WE NEED TO GO INTO A GREAT BIT OF DETAIL HERE. IT'S JUST ADDING AN ADDITIONAL COMMITTEE THAT GETS TO HAVE EX OFFICIO, UM, REPRESENTATION AT THE DOWNTOWN, UM, COMMISSION. IS THERE ANYTHING THAT THE CLERK'S OFFICE WOULD LIKE TO ADD TO THAT SHARE THAT THIS IS STEPHANIE AT THE CITY CLERK'S OFFICE? THAT'S ABSOLUTELY CORRECT. THAT'S WHAT THEY'RE DOING. THEY WOULD LIKE TO ADD THE PUBLIC SAFETY COMMISSION AS A NON-VOTING REPRESENTATIVE TO THEIR COMMISSION. WONDERFUL. THANK YOU. SO DO I HAVE A MOTION TO APPROVE THE BYLAWS CHANGES TO THE DOWNTOWN COMMISSION FROM COUNCIL MEMBER FLANNIGAN SECONDED BY COUNCIL MEMBER? TOVO I'M HEARING NO OBJECTIONS THAT IS PASSED. AND I WILL JUST NOTE FOR THE LAST REPORT ACCEPTANCE IN THIS ONE. UH, MAYOR ADLER IS TEMPORARILY OFF THE VIRTUAL DYESS. UM, WE WILL NOW MOVE TO ITEMS, UM, THE ANNUAL [6. Annual Pension Update of the City's Three Retirement Systems (Austin Fire Fighters Relief and Retirement Fund, Austin Police Retirement System, and the City of Austin Employees' Retirement System) (Financial Services Department)] PENSION UPDATE OF THE CITY'S FREE RETIREMENT, UM, FUNDS. UM, AND I WANT TO JUST ADD, UM, FOR THE RECORD THAT, UM, WE ARE GOING TO, UM, ALTHOUGH THE, UM, STAFF REQUESTS FOR ITEMS ITEM SEVEN TO FURTHER CONVERSATION WITH SYSTEM PLAN STAFF. SO ITEM SIX WILL BE OUR LAST ITEM OF THIS MORNING BEYOND, UM, TEACHER ITEMS DISCUSSION. SO GOOD MORNING, MS. WEAVER, A FEW AS LIKE GOOD MORNING OR ANYTHING. WELCOME. UH, THERE IS A PRESENTATION, [01:25:01] SO I'LL WAIT FOR THAT TO COME UP. GREAT. THANK YOU. UM, SO GOOD MORNING. I AM BELINDA WEAVER. I'M THE CITY TREASURER, AND I'M HERE TODAY TO PROVIDE, UH, THE ANNUAL UPDATE FOR THE CITY'S THREE PENSION SYSTEMS. UM, FIRST I'LL JUST PROVIDE A BRIEF OVERVIEW AND THEN I'LL GET INTO THE UPDATE OF CERTAIN ACTUARIAL ALONG WITH FINANCIAL DATA OF THE SYSTEMS. NEXT SLIDE PLEASE. SO THE CITY OF AUSTIN HAS THREE EMPLOYEE BASED PENSION SYSTEMS. UM, THE PLANS ARE ALL DEFINED BENEFIT PLANS AND ALL THREE OF THE PLANS WERE CREATED BY STATE LAW AND STATUTE DOES GOVERN, UM, CERTAIN BENEFIT AND CONTRIBUTION PROVISIONS AND AMENDMENTS TO THAT LAW CAN ONLY BE MADE BY THE STATE LEGISLATURE. UM, EACH PENSION SYSTEM IS ADMINISTERED BY AN INDEPENDENT BOARD OF TRUSTEES AND THE COMPOSITION OF THOSE BOARDS DO VARY AND THEY DO INCLUDE, UH, ELECTED OFFICIALS, APPOINTEES EMPLOYEES, AND RETIREES. AND I DO WANT TO MENTION THAT THE EMPLOYEES RETIREMENT SYSTEM AND THE POLICE RETIREMENT SYSTEM, DO YOU HAVE A CITIZEN AT LARGE AS WELL? UM, AS FAR AS CITY REPRESENTATION ON THE BOARD FOR THE EMPLOYEES SYSTEM COUNCIL MEMBER POOL AND DEPUTY CFO, I'VE BEEN EITHER NEW OR ON THAT BOARD FOR THE POLICE SYSTEM, IT IS COUNCIL MEMBER TOVO, UM, AGAIN, DEPUTY CFO AT BENU AND MYSELF AND FOR THE FIRE BOARD. AND BY STATUTE, IT IS THE MAYOR ACID CHAIR AND, UH, MYSELF AS CITY TREASURER ON THAT BOARD, UM, EACH BOARD DOES MEET MONTHLY AND THEY DO HAVE A FISCAL YEAR END OF DECEMBER 31ST, NEXT SLIDE, PLEASE. THIS SLIDE JUST, UH, IT TELLS THE PENSION SYSTEM ELIGIBILITY FOR THE THREE SYSTEMS FOR THE EMPLOYEE'S RETIREMENT SYSTEM. IT'S ALL REGULAR FULL TIME EMPLOYEES, EXCLUDING CIVIL SERVICE POLICE AND FIRE, BUT IT DOES INCLUDE EMS EMPLOYEES. UM, THERE ARE TWO GROUPS ASSOCIATED WITH THIS, UM, RETIREMENT SYSTEM IT'S GROUP, A, UH, OUR EMPLOYEES HIRED PRIOR TO JANUARY 1ST, 2012. AND GROUP B IS EMPLOYEES HIRED ON OR AFTER JANUARY 1ST, 2012. I DO WANT TO KNOW THAT THERE ARE DIFFERENT, UH, BENEFIT PROVISIONS AND RETIREMENT ELIGIBILITY REQUIREMENTS THAT, UM, ARE ASSOCIATED WITH THESE TWO GROUPS. AND THOSE WILL BE DISCUSSED A LITTLE BIT FURTHER IN THE PRESENTATION, UM, FOR THE POLICE RETIREMENT SYSTEM IS ALL COMMISSIONED LAW ENFORCEMENT OFFICERS IN CADETS UPON ENROLLMENT TO THE POLICE ACADEMY AND FOR THE FIREFIGHTERS FUND, IT'S ALL COMMISSIONED CIVIL SERVICE AND TEXAS STATE CERTIFIED FIREFIGHTERS WITH AT LEAST SIX MONTHS OF MONTHS OF SERVICE EMPLOYED BY, UM, AFD. NEXT SLIDE, PLEASE. THIS, UM, JUST DETAILS THE CURRENT CONTRIBUTION RATES, UM, CONTRIBUTIONS ARE MADE BY BOTH THE EMPLOYEES AND THE CITY, AND IT'S DONE AS A PERCENT OF PAYROLL. UM, AS YOU CAN SEE HERE, THE EMPLOYEES HAVE A TOTAL CONTRIBUTION OF 26%. UM, THE EMPLOYEE SYSTEM, EXCUSE ME, HAS, UM, A TOTAL CONTRIBUTION OF 26% WHERE 8%, UM, CONTRIBUTION IS MADE BY EMPLOYEES AND THEN 18% BY THE CITY. UH, POLICE IS A LITTLE OVER 34.3% WITH, UM, EMPLOYEE CONTRIBUTIONS AT 13% AND CITY CONTRIBUTIONS AT 21.313, AND FIRE IS AT A 40.75% WITH EMPLOYEES CONTRIBUTING 18.7% OF PAYROLL. AND, UM, THE CITY AT A LITTLE OVER 22%, I DO WANT TO NOTE THAT FIRE DOES NOT PARTICIPATE IN SOCIAL SECURITY. THAT'S A 6.2% CONTRIBUTION FOR BOTH THE CITY AND EMPLOYEE THAT FIRE MEMBERS DO NOT PAY INTO, BUT, UM, EMPLOYEES AND POLICE DO, UM, THAT BOTTOM ROW IS THE TOTAL CONTRIBUTION AMOUNT EXPRESSED TO THEM. THESE NUMBERS ARE AS OF SEPTEMBER 30TH, 2019, AND THEY ARE DERIVED FROM OUR, UM, ANNUAL, UM, ANNUAL CITY. KHAFRE NEXT SLIDE. UH, THIS SLIDE SIMPLY DETAILS PLAN MEMBERSHIP SIZE. UM, AS YOU CAN SEE, EMPLOYEES BY FAR IS THE LARGEST PLAN WITH ALMOST 20,000 MEMBERS. UH, POLICE IS THE NEXT LARGEST, ALTHOUGH SIGNIFICANTLY LESS THAN, UM, EMPLOYEES, BUT THEY'RE AT ALMOST 3000 MEMBERS. AND FIRE IS, UM, AT ALMOST 2000 MEMBERS AND IT'S THE SMALLEST OF THE THREE PLANTS. AND, UM, THERE ARE DIFFERENT RETIREMENT ELIGIBILITY PROVISIONS WITH EACH OF THE PLANS. AND WITH EMPLOYEES, AS I STATED EARLIER, THERE IS A GROUP A AND A GROUP B. UM, SO FOR THE RETIREMENT ELIGIBILITY, IT DOES DIFFER BETWEEN BOTH GROUPS FOR GROUP A IT'S 20 YEARS OF SERVICE AT AGE 55, 23 YEARS OF SERVICE AT ANY AGE AND ANY NUMBER OF YEARS OF SERVICE AT AGE 62, UM, FOR GROUP B, IT IS 30 YEARS OF SERVICE AT AGE 62 AND FIVE YEARS OF SERVICE AT AGE 65. [01:30:01] UH, THE POLICE RETIREMENT ELIGIBILITY DOES MIRROR REPAY OF EMPLOYEES AND FIRES IS 10 YEARS OF SERVICE AT AGE 50 AND 25 YEARS OF SERVICE AT ANY AGE, AS FAR AS VESTING IS CONCERNED WITH THESE RETIREMENT SYSTEMS EMPLOYEES, IS IT FIVE YEARS IN POLICE AND FIRE? IS IT NEXT SLIDE, PLEASE? THIS GRAPH DISPLAYS THE MULTIPLIER RATE FOR EACH OF THE PENSION PLANS SINCE 1996. UM, THE MULTIPLIER RATE IS USED IN DETERMINING RETIREE ANNUITY AMOUNTS, AND IT'S THE NUMBER THAT IS MULTIPLIED BY THE YEARS OF SERVICE TO DETERMINE A PERCENTAGE. AND THEN THAT PERCENTAGE IS THEN MULTIPLIED BY AN AVERAGE SALARY AMOUNT TO COME UP WITH THE ANNUITY THAT IS PAID TO A RETIREE. AS YOU CAN SEE ON THIS GRAPH, THERE HAS NOT BEEN ANY INCREASES TO ANY OF THE MULTIPLIERS FOR ANY OF THE SYSTEMS AND OVER 10 YEARS. UM, BUT YOU CAN ALSO SEE IN THIS BROWSER THAT THERE WERE QUITE A FEW CHANGES IN THE LATE NINETIES AND EARLY TWO THOUSANDS REGARDING THIS MULTIPLIER AS OF TODAY. UM, THE MULTIPLIER RATES FOR THE SYSTEMS FIRE HAS THE HIGHEST AT 3.3, 3.3%, UM, POLICES AT 3.2% EMPLOYEES GROUP A IS AT 3%. AND, UM, EMPLOYEES GROUP B IS AT TWO AND A HALF PERCENT. NEXT SLIDE, PLEASE. THIS SLIDE SHOWS CERTAIN KEY ACTUARIAL ASSUMPTIONS FOR THE CITY'S PENSION PLANS. SO ACTUARIES ESTIMATE THE AMOUNT THAT WILL BE NEEDED TO PAY FUTURE BENEFITS OF THE SYSTEM. AND THESE ACTUARIAL ASSUMPTIONS ARE USED AS INTEGRAL PARTS OF DETERMINING THE, THAT ESTIMATE. UM, I HAVE THREE ASSUMPTIONS LISTED HERE AND THEY'RE SIGNIFICANT ASSUMPTIONS IN THESE ACTUARIAL CALCULATIONS THAT ARE DONE BY THE SYSTEM ACTUARIES ON AN ANNUAL BASIS. UM, THEY'RE THE INFLATION RATE, THE PAYROLL GROWTH RATE, AS WELL AS THE INVESTMENT RETURN. THE INFLATION RATE IS JUST GENERAL UNDERLYING ANNUAL INFLATION, AND IT'S A COMPONENT OF SEVERAL OTHER ACTUARIAL ASSUMPTIONS. UM, THE PAYROLL GROWTH RATE, UM, THIS INCREASED VARIES BY PENSION FUNDS AND IT'S DETERMINED USING HISTORICAL EXPERIENCE ALONG WITH PROJECTED GROWTH. AND THEN THE INVESTMENT RETURN RATE IS THE RATE OF INFLATION. PLUS THE REAL RATE OF RETURN, THIS RATE IS AN ASSUMED RATE AND IT REFLECTS A FIVE YEAR PERIOD OF SMOOTHING AND THE SMOOTHING IS DONE, UM, IN ORDER TO REDUCE VOLATILITY IN THAT ACTUARIAL CALCULATION. I DO WANT TO MENTION THAT, UM, BOTH THE EMPLOYEES AND THE FIRE SYSTEM, UM, HAD AN EXPERIENCED STUDY DONE THIS YEAR AND THEY'VE HAD ACTUARIAL ASSUMPTION CHANGES. UM, WHAT AN EXPERIENCE STUDY IS, IS IT IS CONDUCTED BY THE SYSTEM'S ACTUARY, WHERE THEY REVIEW THE ACTUARIAL ASSUMPTIONS THAT ARE BEING USED BY THE SYSTEM FOR APPROPRIATENESS. THEY LOOK AT THE HISTORY OF, UH, THE ACTUAL ASSUMPTIONS BEING USED, UM, WHETHER THEY HAVE MET THOSE ACTUARIAL ASSUMPTIONS, MAYBE EXCEEDED OR NOT QUITE MET THEM. THEY ALSO LOOK AT FUTURE VARIABLES AND THEN THEY MAKE RECOMMENDATIONS TO THE SYSTEM FOR POSSIBLE CHANGES TO THOSE ACTUARIAL ASSUMPTIONS. AND, UM, THIS EXPERIENCED STUDY IS REQUIRED BY STATE LAW TO BE CONDUCTED BY EACH SYSTEM AT LEAST EVERY FIVE YEARS. SO FOR THE EMPLOYEE SYSTEM, THE INFLATION RATE WAS LOWERED FROM 2.7, 5% TO TWO AND A HALF. UM, THE PAYROLL GROWTH RATE, WHICH THEY REFER TO AS, UM, SALARY INCREASE, IT'S ACTUALLY A RANGE, BUT JUST FOR COMPARABLE PURPOSES, UM, I HAVE THE LOWER END OF THE RANGE LISTED, UM, THAT WAS LOWERED FROM 4% TO THREE AND A HALF PERCENT. AND THE INVESTMENT RETURN RATE WAS LOWERED FROM SEVEN AND A QUARTER TO 7% FOR THE FIRE SYSTEM. THE INFLATION RATE WAS LOWERED FROM 2.7, 5% TO TWO AND A HALF. UH, PAYROLL GROWTH WAS LOWERED FROM 3% TO 2%. AND THE INVESTMENT RETURN RATE WAS LOWERED FROM 7.7% TO SEVEN AND A HALF. UM, POLICE ACTUALLY DID CONDUCT THEIR EXPERIENCE STUDY LAST YEAR. AND, UM, THOSE NEW ACTUARIAL ASSUMPTIONS THAT WERE ADDED LAST YEAR ARE REFLECTED ON THIS SLIDE AS WELL. NEXT SLIDE PLEASE. OH, COUNCIL MEMBER POOL. YES. THANKS BELINDA. I JUST WANTED TO POINT OUT TO EVERYBODY IS PROBABLY GOING TO GET INTO THIS, BUT YOU GO BACK TO ANY TWEAKING THING OF THESE PERCENTAGES BECAUSE HAS REALLY LARGE IMPACTS ON THE ACTUARIAL SOUNDNESS AND THE PAYOUT. THE NUMBER OF YEARS, IT'S, IT'S PRETTY EXTRAORDINARY, JUST EVEN LIKE A SMALL CHANGE, THE PAYROLL GROWTH OR THE INVESTMENT RETURN. AND IT TOOK QUITE A BIT OF DOING FOUR COLORS TO MOVE DOWN FROM 7.5 DOWN TO SEVEN POINTS. THAT WAS A VERY SYSTEMATIC AND VERY PACED AND DELIBERATE MOVE. UM, BUT IT DID HAVE [01:35:01] THE, UM, THE NATURAL OUTCOME OF INCREASING THE NUMBER OF YEARS TO GET TO A FULL PAYOUT, WHICH IS ONE OF THE KEY COMPONENTS OF THE STATE LEGISLATURE, WHATSAPP. SO CHANGING THESE NUMBERS TERMS, THAT'S PRETTY DRAMATIC IMPACTS ON SOUNDNESS. THANK YOU. UM, NEXT SLIDE PLEASE. SO FOLLOWING UP ON WHAT COUNCIL MEMBER POOL STATED, UM, THIS SLIDE DOES DETAIL CERTAIN KEY ACTUARIAL CALCULATIONS THEN FROM THE MOST RECENT ACTUARIAL VALUATION OF EACH PENSION FUNDS, UM, WHICH WAS AS OF 2019, UM, THESE CALCULATIONS ARE USED IN DETERMINING THE FINANCIAL HEALTH OF THE SYSTEM. UM, THERE'S A LOT OF INFORMATION ON THIS PAGE. I'M NOT GOING TO GO THROUGH ALL OF IT. UM, JUST SOME KEY ACTUARIAL CALCULATIONS, THE FIRST BEING THE UNFUNDED APPROVED LIABILITY AND AS COUNCIL MEMBER POOL STATED THOSE, UM, ADJUSTMENTS TO, UM, ACTUARIAL ASSUMPTIONS DOES IMPACT THIS NUMBER. UM, THIS UNFUNDED APPROVED LIABILITY IS ESSENTIALLY THE DIFFERENCE BETWEEN THE PENSION PLANS, LIABILITIES, LESS THEIR ASSETS. SO IN OTHER WORDS, IT'S THE AMOUNT OF BENEFITS OR CRUDE IN WHICH NO FUNDING HAS BEEN SET ASIDE. UM, AND KIND OF PIGGYBACKING ON THAT IS THE AMORTIZATION PERIOD. SO WHEN AN UNFUNDED LIABILITY DOES EXIST, WHICH IT DOES FOR ALL THREE OF OUR SYSTEMS, UM, AND ACTUARY DETERMINES THE NUMBER OF YEARS OR THE AMORTIZATION PERIOD, IT WILL TAKE TO FUND THAT UNFUNDED LIABILITY. UM, IN THE CASE OF EMPLOYEE SYSTEM, UM, THEY ARE AT 40 YEARS. UM, IF YOU REMEMBER FROM LAST YEAR'S PRESENTATION, THEY WERE AT 32 YEARS. SO THAT EXPERIENCE STUDY AND THOSE ACTUARIAL ASSUMPTION THAT THE NEW ADOPTION OF ACTUARIAL ASSUMPTIONS HAS IMPACTED THAT AMORTIZATION PERIOD FOR POLICE IT'S INFINITE. AND, UM, FOR FIRE IS AT 21.9 YEARS, THEY ALSO EXPERIENCED A SLIGHT INCREASE IN THEIR AMORTIZATION PERIOD BASED ON THE EXPERIENCE STUDY THAT WAS DONE THIS YEAR AND ON THE, UM, BOTTOM ROW IS DEFENDED RATIO. THIS IS A STANDARD PENSION BENCHMARK THAT IS A RATIO OF ASSETS TO LIABILITIES. THIS RATIO INDICATES THE EXTENT TO WHICH EACH PLAN HAS ENOUGH ASSETS SET ASIDE TO PAY FOR ACCRUED BENEFITS AND ACTUALLY ON THE NEXT SLIDE, I'LL DISCUSS THE FUNDED RATIO A LITTLE BIT MORE IN DETAIL. UM, NEXT SLIDE PLEASE. SO I'M LOOKING AT THESE FUNDED RATIOS. UM, THIS IS A HISTORICAL LOOK AT IT FROM 2007 TILL I'M 2019 AND EVALUATING OFFENDED RATIO OVER TIME HELPS INDICATE THE PROGRESS THAT A PENSION FUND IS MAKING AND SETTING ASIDE, UM, ASSETS TO FUND CURRENT AND FUTURE LIABILITIES. AND DID, SORRY. I THOUGHT I SAW A COUNCIL MEMBER POOL, UH, COUNCIL MEMBER BULL'S HAND UP ARISING RATIO OVER TIME INDICATES THAT ASSETS ARE ACCUMULATING TO MAKE FUTURE PAYMENTS. AND A DECLINING FUNDED RATIO MAY INDICATE THAT THE PLAN IS MAY NOT BE SETTING ASIDE ENOUGH ASSETS. SO, UM, WHEN LOOKING AT THIS GRAPH, YOU CAN SEE AS FAR AS FIRE, UM, THEY'RE FAIRLY CONSTANT, UM, WITH EMPLOYEES AND POLICE, AS OF RECENTLY, YOU'LL SEE, UM, SOME DECLINES FOR 2018 FOR POLICE AND 2019 FOR EMPLOYEES. THOSE FENDED RATIO DECLINES ARE ATTRIBUTED TO WHAT WAS DISCUSSED IN THAT EXPERIENCE STUDY. AND THOSE RECENTLY ADOPTED, UM, ASSUMPTIONS, UM, OFFENDED RATIO OF 80% OR HIGHER IS LOOKED UPON FAVORABLY. AND AS YOU CAN SEE, FIRE HAS THE HIGHEST FENDED RATIO OF THE THREE SYSTEMS AND THEY ARE, UH, UM, AT ABOUT THE MID EIGHTIES, FOLLOWED BY EMPLOYEES AT 63% AND POLICE AT 58%. NEXT SLIDE, PLEASE. THIS SLIDE IS, UM, JU JUST LISTS THE INVESTMENT RETURNS FOR THE SYSTEMS. UM, THE 2019 RE RE UH, INVESTMENT RETURNS WERE GREAT FOR THE PLANS. AS YOU CAN SEE EMPLOYEES AND POLICE THEY'VE HAD OVER A 20% INVESTMENT RETURN FOR THE YEAR. AND FIRE WAS AT ALMOST 16%. I DO HAVE THE THREE, FIVE AND 10 YEAR RETURNS. THESE ARE WEIGHTED AVERAGE RETURNS, AND THEY DO DEMONSTRATE THE PERFORMANCE OF THE PLANS OVER A LONGER PERIOD OF TIME. UM, AND THAT'S KIND OF IMPORTANT BECAUSE A COUPLE OF TAKEAWAYS FROM THIS SLIDE IS THAT ALTHOUGH IT'S FREEDOM TO MONITOR THE PORTFOLIOS ON A SHORT TERM BASIS, WE NEED TO ENSURE THAT WE DON'T LOSE SIGHT OF THE FACT THAT THESE PENSIONS ARE LONGTERM INVESTORS. AND, UM, ADDITIONALLY THAT ALL PORTFOLIOS GO THROUGH CYCLES PERFORMING REALLY WELL AT TIMES, AND THEN LAGGING THEIR PEERS OR BENCHMARKS AT OTHERS. AND I THINK COMPARING THIS YEAR'S RETURNS TO LAST YEAR'S RETURNS IS A PERFECT EXAMPLE. UM, AGAIN, THIS YEAR WE, THERE WERE GREAT RETURNS FOR THE THREE SYSTEMS. AND [01:40:01] IF YOU REMEMBER LAST YEAR, WHEN I BROUGHT THIS ANNUAL AND PRESENTATION TO AUDIT AND FINANCE, ALL THREE OF THE FUNDS ACTUALLY HAD NEGATIVE RETURNS. SO LOOKING AT IT, NOT AS A SINGLE POINT IN TIME, BUT JUST, UM, AND IN THE LONGER HORIZON IS A BETTER WAY TO LOOK AT THESE PENSION SYSTEM RETURNS. NEXT SLIDE PLEASE. AND THIS CONCLUDES MY PRESENTATION. IF THERE'S ANY QUESTIONS, I'M HAPPY TO ANSWER THOSE AT THIS TIME. THANK YOU, MISS LEVER IS YOUR PRESENTATION UP IN THE BACKUP. PERFECT. OKAY, GREAT. THANK YOU. UM, COLLEAGUES, ARE THERE ANY QUESTIONS WE'VE BEEN TALKING ABOUT THE PENSIONS OFF AND ON? SO MOST OF THIS MATERIAL, UM, WE, WE NEED TO DO THE GENERAL REPORT, BUT MOST OF IT IS NOT NEW AND I WANT TO ACKNOWLEDGE, UM, THE SERVICE OF COUNCIL MEMBERS PULLED TOVO AND ADLER ON, UM, INDIVIDUAL BOARDS. UM, I KNOW THAT'S A, AN ADDITIONAL TASK AND THANK YOU FOR SERVING IN THAT CAPACITY. UM, DOES ANYONE HAVE ANY QUESTIONS AT THIS TIME FOR MR. BIEBER? OKAY. I'M SEEING, AND I DON'T THINK WE NEED TO TAKE ANY ACTION ON THE UPDATE. UM, AND WE WERE GOING TO WITHDRAW ITEM SEVEN, UM, WITHOUT OBJECTIONS, YOU WILL, UM, WITHDRAW ITEMS SEVEN AT THE STAFF'S REQUEST. UM, [8. Identify items to be discussed at future meetings.] THE LAST ITEM ON OUR AGENDA IS TO IDENTIFY ITEMS, TO BE DISCUSSED AT FUTURE MEETINGS. ARE THERE ANY THINGS THAT PEOPLE WANT, UM, DISCUSS THAT HAVEN'T ALREADY, UM, COME UP, BUT I JUST WANT TO, YOU, YOU NOTED THAT I HAD STEPPED OFF THE DYESS WITH THE ITEM TWO AGO. I JUST WANT THE RECORD TO REFLECT THAT I WAS BACK ON THE DIYERS FOR THE DISCUSSION OF THE PENSION REPORT. THANKS, SIR. THANK YOU. AND SHARE. I WAS ALSO, I HAD TURNED MY VIDEO OFF BECAUSE I NEEDED TO SWITCH TO THE PHONE BECAUSE WE'VE LIVED FOR YEARS IN THE HOUSE, BUT I WAS ALSO PRESENT FOR THE OFFICE FOR THE DISCUSSION OF THE AUDIT AS THOUGH THE PENSION. YEAH. I'M SORRY. THANK YOU FOR THE PENSION. SURE. GREAT. THANK YOU. WELL, SEEING THAT THERE ARE NO OTHER ITEMS THAT FOLKS WANT TO DISCUSS. I'M GOING TO ADJOURN HOUSE EARLY AT 1113. UM, THANK YOU EVERYONE FOR BEING HERE THIS MORNING. GOODBYE. UH, MMM. . * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.