[Audit Committee Meeting on December 19, 2023. --THIS MEETING IS AUDIO ONLY--]
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I WANNA WELCOME YOU NOW TO OUR DECEMBER THE 19TH 2023 AUDIT COMMITTEE MEETING.
UH, WE HAVE WITH US THIS EVENING COMMITTEE MEMBERS, UH, CHRIS OTT, WHO IS, UH, THE COUNCIL MEMBER FROM DISTRICT EIGHT EIGHT, AND WE HAVE A COUPLE OF NEW MEMBERS WITH US TODAY THAT WE WANT TO ACKNOWLEDGE.
UH, WE HAVE J ZACH EVANS, SENIOR AUDITOR AND VIN MATTHEWS STAFF AUDITOR.
AND OF COURSE WE HAVE, UH, OUR CITY AUDITOR, JED JOHNSON, ALONG WITH VARIOUS STAFF MEMBERS.
AND, UH, AT THIS POINT, LET, LET'S JUST PROCEED WITH OUR MEETING.
FIRST ITEM ON OUR AGENDA TODAY IS, UH, THE APPROVAL OF THE MINUTES FROM OUR LAST MEETING, SEPTEMBER THE FIFTH, COUNCIL COMMITTEE.
IF YOU'VE HAD OPPORTUNITY TO TAKE A LOOK AT THE, UH, MINUTES, WE'LL ENTERTAIN A MOTION TO APPROVE.
MR. CHAIRMAN? YES, I'D LIKE TO MAKE A MOTION THAT WE APPROVE THE MINUTES AS PRESENTED.
AND WITH THAT, UH, ALL IN FAVOR, ALL OPPOSED MINUTES ARE APPROVED.
FROM THERE, LET'S GO TO OUR SECOND ITEM, UH, WHICH IS THE PUBLIC COMMENTS PERSON WHO DESIRE TO ADDRESS THE COMMITTEE ON ANY ITEM FROM THE AGENDA, OR ALLOW THREE MINUTES TO SPEAK.
TESTIMONY MAY BE HELD UNTIL THE ITEM IS CONSIDERED OR GIVEN AT THE BEGINNING OF ANY COMMITTEE MEETING.
INVITED TESTIMONY MAY ALSO OCCUR AT ANY TIME SUBJECT TO A REQUEST OF THE MEMBER OF THE COMMITTEE.
AND WITH THE APPROVAL OF THE COMMITTEE CHAIR, DO WE HAVE ANY, UH, PUBLIC COMMENTS? SEEING THAT THERE ARE NONE.
THE NEXT ITEM, LET US NOW GO TO THE ITEMS FOR INDIVIDUAL CONSIDERATION.
AND WE'RE GOING TO TURN THIS PART OVER TO OUR AUDIT COMMITTEE CHAIR, OUR AUDIT CITY AUDITOR, JUDGE JOHNSON.
UM, THANK YOU FOR HAVING US TODAY.
AND, AND, UM, I, I DO, I MEAN, IF YOU REMEMBER, UM, IN THE LAST MEETING, COUNCILMAN WILLIAMS REQUESTED, UM, OUR EXTERNAL AUDITORS TO COME BACK AND PROVIDE SOME UPDATES ON THE AUDIT PROCESS.
UM, SO SARAH AND CLAIRE, UM, SARAH IS THE PARTNER, AND CLAIRE IS THE MANAGER, AUDIT MANAGER.
THEY'VE, UM, PROVIDED A VERY DETAILED, UM, PRESENTATION.
SO AT THIS POINT, I'M JUST GONNA TURN IT OVER TO SARAH.
THANK YOU FOR HAVING ME TODAY.
CLAIRE IS WITH ME, AND WE'VE PREPARED THIS PRESENTATION TO GO OVER THE AUDIT PROCESS IN A LITTLE MORE DETAIL.
WE CAME, UH, A COUPLE OF MONTHS AGO, AND THAT'S WHERE WE DO OUR REQUIRED COMMUNICATIONS, WHERE WE TELL YOU, YOU KNOW, WHAT, WE'RE AUDITING WHY, BUT IT DOESN'T GET INTO AS MUCH DETAIL AS, AS YOU MAY NEED.
SO WE PUT THIS PRESENTATION TOGETHER TO GO THROUGH A LITTLE MORE INFORMATION THAN, UM, WHAT WE TALKED ABOUT A FEW MONTHS AGO.
SO, UM, I'LL LET, I'LL TURN IT OVER TO CLAIRE.
ALRIGHT, SO TODAY WE'RE JUST GONNA GO THROUGH A DEEPER DIVE INTO THE, WHAT THE AUDIT PROCESS IS, WHAT WE'RE DOING, UM, AND THEN WE CAN TALK THROUGH ANY OTHER CONCERNS.
UM, JUST DISCUSSIONS ABOUT OUR UPCOMING PROCEDURES WHEN WE START IN JANUARY.
SO, AGAIN, KIND OF RECAPPING FROM THAT MEETING WE HAD BACK IN SEPTEMBER.
WE'RE USING A RISK-BASED APPROACH.
SO WE'RE REALLY FOCUSING ON THOSE AREAS THAT ARE MOST RISKY TO THE WHAT TO THE CITY.
SO WE'RE NOT LOOKING AT 100% OF EVERYTHING.
WE, THAT WOULD NEVER BE POSSIBLE.
SO WE'RE USING A RISK-BASED APPROACH ON AREAS THAT, THROUGH, UM,
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REVIEWING THE MINUTES, REVIEWING, UM, UH, THE CITY'S FINANCIAL STATEMENTS, ALL THOSE KINDS OF KEY THINGS THAT WE LOOK AT.WHAT AREAS COULD BE THE RISKIEST, WHAT KEY TRANSACTIONS ARE GOING ON DURING THE YEAR THAT WE DEEM THE RISKIEST.
AND THAT'S REALLY WHERE WE'RE FOCUSING OUR PROCEDURES ON.
SO WE'RE ALSO LOOKING AT MANAGEMENT OVERRIDE OF INTERNAL CONTROL.
SO THAT'S WHEN THERE COULD BE THINGS LIKE COLLUSION, UM, OR WHEN MANAGEMENT'S JUST SAYING, WE'RE NOT GONNA GO THROUGH THAT JOURNAL ENTRY PROCESS, I'M GONNA START WRITING JOURNAL ENTRIES MYSELF, THAT KIND OF A THING.
SO THEY'RE OVERRIDING THE REGULAR PROCESS.
UM, ANYTHING WHERE INFORMATION TECHNOLOGY, THE IT PROCESS COULD BE INVOLVED IN THE CAPITAL PROJECTS, PURCHASING, UM, PAYABLES AND ACCRUALS, UTILITY REVENUES AND FEDERAL REVENUES AND EXPENDITURES AND COMPLIANCE REQUIREMENTS RELATED TO THOSE.
SO THOSE ARE AREAS THAT WE DEEM TO HAVE A LOT OF RISK.
AND THEN WE'RE ALSO ALSO UTILIZING A MATERIALITY.
SO AGAIN, WHENEVER WE'RE LOOKING AT THOSE RISKIEST AREAS, WE'RE NOT LOOKING AT THOSE A HUNDRED PERCENT EITHER.
WE'RE UTILIZING A MATERIALITY THAT WE, UM, CALCULATE WITH OUR AUDITOR JUDGE JUDGMENT, UM, TO LOOK AT THOSE KEY LINES ON THE FINANCIAL STATEMENTS.
AND, UM, THE MATERIALITY THAT WE CALCULATE IS DIFFERENT FOR, FOR EACH AREA OF THE FINANCIAL STATEMENTS.
AND WE'RE CALCULATING THAT BASED ON OPINION UNIT.
SO WITH THE GOVERNMENTAL ACTIVITIES AND BUSINESS TYPE ACTIVITIES, THAT'S FROM A KEY OVER, UM, OVERARCHING VIEW.
AND THEN WHEN YOU GET DOWN TO EACH OF THE FUND LEVEL, UH, FUNDS, THEN WE'RE GOING INTO AN EVEN LOWER SCOPE WHERE WE'RE LOOKING AT THE GENERAL FUND, THE DEBT SERVICE, CAPITAL PROJECTS, ELECTRIC.
SO WE'RE LOOKING AT THE MATERIALITY FOR EACH OF THOSE, UM, ENTITIES AND BASING IT OFF OF THOSE KEY RISK ITEMS. SO THE GOOD THING TO POINT OUT HERE, I'LL JUST PAUSE REAL QUICK.
AND, UM, EACH FUND DOES HAVE ITS OWN MATERIALITY.
SO WE COULDN'T SAY WE'RE LOOKING AT EVERYTHING OVER $100,000 OR $10,000.
EACH FUND IS A LITTLE BIT DIFFERENT AND UNIQUE, AND OUR CALCULATION IS USUALLY BASED OFF A PERCENTAGE OF EITHER ASSETS OR REVENUE.
SO, UM, CLAIRE'S GONNA GET INTO THE PROCESS A LITTLE BIT DEEPER, BUT IT IS DIFFERENT FOR EACH FUND.
AND SO THAT'S WHERE, UM, WE, WE CAN'T REALLY ALWAYS ANSWER WHAT'S MATERIALITY BECAUSE WE WOULD HAVE TO GET REALLY SPECIFIC AS TO WHAT FUND WE'RE LOOKING AT.
SO I KNOW THIS IS VERY SMALL, BUT YOU'VE GOT THE, UM, YOU SLIDES IN FRONT OF YOU TOO.
AND FOR, YOU CAN HAVE THIS AS A KEY TAKEAWAY TOO, IF YOU'RE LOOKING AT KIND OF WHAT ARE WE LOOKING AT, WHAT, WHAT KIND OF SCOPE ARE WE LOOKING AT? AND I GAVE YOU AN EXAMPLE CALCULATION OFF TO THE RIGHT.
AGAIN, THAT'S AN ARBITRARY DOLLAR AMOUNT.
UM, BUT THAT'S JUST A, A KEY IDEA OF, OF HOW WE'RE CALCULATING WHAT WE'RE LOOKING AT, UM, AND HOW WE'RE REALLY DIVING INTO SOME OF THESE ITEMS. UM, BUT FOR EACH OF THOSE FUNDS, WE, UM, LOOK AT WHAT THE, THE KEY DRIVER, LIKE GENERAL FUND, A KEY DRIVER COULD BE REVENUE WHERE IT'S BASED ON PROPERTY TAXES AND OTHER SIGNIFICANT REVENUE TO THE CITY.
SO WE TAKE THAT REVENUE AND APPLY A PERCENTAGE TO CALCULATE, UM, A MATERIALITY, AND THEN WE TAKE ANOTHER PERCENTAGE OF, OF 75% TO CALCULATE A PERFORMANCE MATERIALITY.
AND THEN FROM THERE, WE, UM, BASE A HIGH MODERATE OR LOW RISK TO CERTAIN AUDIT AREAS TO THEN GO INTO A TESTING SCOPE.
UM, AND I THINK WHEN YOU TALK ABOUT AUDIT AREAS AND YOU'RE LOOKING AT IT, WE'LL TAKE THE GENERAL FUND AS AN EXAMPLE, CASH.
UM, IF THAT CAME UP AS HIGH RISK, IT WOULD HAVE A LOWER SCOPE.
SO WE WOULD TAKE ONE SIXTH OF THAT PERFORMANCE MATERIALITY.
IF WE THOUGHT THAT AP WAS LESS RISKY, MAYBE THAT WOULD JUST BE ONE THIRD OF THE MATERIALITY AMOUNT.
SO WHEN YOU'RE LOOKING AT THE CALCULATION, THAT'S WHERE IT CAN CHANGE A LITTLE BIT AS WELL, BASED ON OUR RISK ASSESSMENT.
SO THIS SLIDE JUST GOES INTO A LOT OF THAT DETAIL.
IT'S GOT A LOT OF WORDS AND NUMBERS ON THERE, BUT YOU'VE GOT IT AS A KIND OF KEY TAKEAWAY IF YOU WOULD LIKE TO LOOK FURTHER INTO IT.
AND THEN WE ALSO CALCULATE A TRIVIAL, UH, DOLLAR AMOUNT.
AND THAT'S BASED ON A PERCENTAGE OF THAT MATERIALITY, TYPICALLY EITHER FIVE OR 10%, WHERE WE DEEM ANYTHING BELOW THAT TRIVIAL PERCENTAGE.
AND AGAIN, IT'S BASED ON THE FUND WE'RE LOOKING AT.
SO GENERAL FUND DEBT, SERVICE CAPITAL PROJECTS, UM, WATER, SEWER, ET CETERA.
ANYTHING BELOW THAT DOLLAR AMOUNT WE DEEM TO BE A MATERIAL.
IF THERE'S A MISTAKE OR A MISSTATEMENT, WE SAY IT'S BELOW TRIVIAL, WE CAN PASS.
UM, WE CAN STILL BRING IT TO THE ATTENTION OF MANAGEMENT AND THEY CAN STILL CHOOSE TO, UM, TO CHANGE IT IF THEY WOULD LIKE TO, TO MAKE SURE EVERYTHING'S CORRECT.
BUT IT'S NOT, UH, MATERIAL TO THE FINANCIAL STATEMENTS AT THAT POINT.
AND THAT'S REALLY AN AMOUNT THAT THE USERS OF THE FINANCIAL STATEMENTS AREN'T GOING TO USE.
AND THAT'S REALLY HOW THIS WHOLE MATERIALITY CALCULATION COMES ABOUT.
DOES IT MATTER TO THE BOND HOLDERS?
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DOES IT MA MATTER TO A GRANTOR? DOES IT MATTER TO A CREDITING AGENCY? SO THAT'S THIS TRIVIAL AMOUNT.UM, IT'S VERY SMALL AND WE DON'T THINK THAT A USER OF THE FINANCIAL STATEMENTS WOULD BE AFFECTED IF THERE WAS AN ERROR IN THE FINANCIAL STATEMENTS THAT FELL BELOW THAT THRESHOLD.
AND THEN, UM, JUMPING BACK TO KIND OF WHAT WE TALKED ABOUT AT OUR SEPTEMBER MEETING, UM, OUR INTERIM PROCEDURES, THOSE ARE THE PROCEDURES THAT WE'RE PERFORMING THAT DON'T NEED THE DOLLAR AMOUNTS TO BE FINALIZED AT THAT POINT.
SO WE'RE LOOKING AT COMPLIANCE TESTING, UM, WITH THE, UH, PUBLIC FUNDS INVESTMENT ACT.
SO THAT'S LOOKING AT THE CITY'S INVESTMENT POLICY THAT'S LOOKING AT, UM, THE QUARTERLY INVESTMENT REPORTS THAT CITY MANAGEMENT IS REQUIRED TO PREPARE AND PRESENT, UM, TO THE CITY COUNCIL.
UM, WHAT PROCEDURES ARE IN PLACE FOR, FOR LOOKING AT THOSE INVESTMENTS, RECORDS RETENTION, UM, BIDDING OVER, UH, UH, CAPITAL PROJECTS, ET CETERA.
WE'RE LOOKING AT THOSE KINDS OF ITEMS THAT WE DON'T NEED THE FINAL, UH, TRIAL BALANCE TO LOOK AT THOSE ITEMS. SO WE PERFORMED THOSE PROCEDURES IN AUGUST WHEN WE CAME OUT FOR INTERIM.
WE ALSO WALKED THROUGH, UM, THE SIGNIFICANT TRANSACTION CLASSES.
SO THAT'S CASH DISBURSEMENT, SO THAT'S THE CHECK CUTTING PROCESS, UM, PURCHASING.
SO, UM, HOW VENDORS ARE SELECTED, HOW, UM, THE PURCHASE REQUISITION PROCESS IS THE PCARD PROCESS, UM, THE INVESTMENTS PAYROLL, UM, HOW IS PAY RATE FOR EACH EMPLOYEE CHOSEN? HOW IS THE ANNUAL PROCESS, UM, HOW IS THE HIRING PROCESS? AND THEN WE LOOK AT PROPERTY TAXES, HOW THOSE ARE COLLECTED, UH, THE BUDGET AND FINANCIAL CLOSE PROCESS, WHAT IS THE, THE MONTHLY PROCESS, WHAT IS THE YEAR END CLOSE PROCESS, THEN UTILITY REVENUE, UM, INVENTORY, AND THEN GRANT REVENUE AS WELL.
AND DURING THIS INTERIM PROCESS, THAT'S WHEN WE ALSO MAKE OUR TESTING SELECTIONS TO SEND TO INTERNAL AUDIT WHERE THEY AID IN OUR TESTING AS WELL.
UM, AND THEN WE ALSO PERFORM, UH, TESTING OVER THE CENSUS DATA FOR THE TMRS PENSION, THE CITY'S OPE HEALTH PLAN, UM, OR THE, AND THEN ALSO THE CITY'S HEALTH BENEFIT, UM, THE SUPPLEMENTAL DEATH BENEFIT PLAN THROUGH TMRS AS WELL.
UM, WE ALSO TEST THE KEY CONTROLS THAT WE IDENTIFIED DURING THOSE WALKTHROUGH PROCESSES OVER CASH DISBURSEMENTS, WHERE WE'RE MAKING A SELECTION, LIKE 40 OR 60, UM, ITEMS WHERE WE'RE TESTING TO MAKE SURE THAT CONTROL IS HAPPENING 40 TIMES OR 60 TIMES.
SO THAT'S DONE WITH DIS DISBURSEMENT, SO THAT CAN BE THE CHECK CUTTING OR A CH PROCESS, PAYROLL, AND THEN, UM, CONTRACT BIDDING PROCEDURES AND PROPERTY TAX RECEIPTS.
SO MAKING SURE, UM, WITH THE TAX COLLECTION PROCESS THAT THE, THAT WHAT'S HAPPENING WITH THE, WITH THE TAX OFFICE IS HAPPENING EVERY TIME, ALL 40 SELECTIONS.
AND THEN WE'RE ALSO TESTING OUR SINGLE, UH, FOR THE MAJOR FEDERAL PROGRAMS FOR THE, THE SINGLE AUDIT, WHICH IS ALL YOUR FEDERAL FINANCIAL ASSISTANCE THAT YOU'VE RECEIVED.
WE DID TESTING, UM, SO FAR FOR OUR INTERIM PROCEDURES OVER HOME, UM, THE ERA PROGRAM AND THE DRINKING WATER REVOLVING LOAN PROGRAM.
AND THEN, LIKE I SAID, HOW WE WERE USING INTERNAL AUDIT.
UM, THEY HAVE BEEN HELPING US WITH THE CASH DISBURSEMENTS AND PAYROLL TESTING AS WELL AS HOME.
UM, AND THEN THE UTILITY BILLING RECEIPTS PRO UH, TESTING.
AND THEN WE'RE ALSO, UM, ONCE WE HAVE, UM, THE FINAL GL DETAIL, SO THAT GENERAL LEDGER DETAIL, UM, DURING THE YEAR, WE GIVE THAT TO OUR WEAVER ANALYTICS DEPARTMENT, AND THEY RUN PROCESSES OVER IT TOO TO LOOK FOR, UM, KEY ITEMS SUCH AS, UM, UH, LIKE CONTRACTORS OR THINGS THAT, THAT HAVE MAYBE AN EMPLOYEE'S ADDRESS THAT LOOK LIKE THEY'VE SET UP A VENDOR, LIKE A FICTITIOUS VENDOR OR, UM, AN EMPLOYEE THAT MAY JUST LOOK LIKE IT'S A FICTITIOUS EMPLOYEE.
THINGS LIKE THAT, THAT WE CANNOT LOOK AT FROM A, WHEN WE'RE DIGGING IN LINE BY LINE, IT'S TOO HARD TO FIND THOSE KINDS OF ITEMS. SO WE'RE ABLE TO LOOK AT IT AT MORE OF A BIRD'S EYE VIEW USING SOME COMPUTER PROCESSES TO AID US THERE.
AND THEN ALSO, UM, THE INTERNAL AUDIT, THAT DEPARTMENT THAT SUB, UH, SUBMITS REPORTS TO YOU ALL DURING THE YEAR THAT YOU ALL ARE REVIEWING.
WE TAKE A LOOK AT THOSE AND WE LOOK FOR ITEMS THAT WOULD HAVE A FIN A MATERIAL FINANCIAL STATEMENT IMPACT.
UM, SO THERE COULD BE ITEMS THAT, UM, HAVE SOME FINANCIAL STATEMENT IMPACTS, LIKE CASH HANDLING OR IF THERE WERE ISSUES LIKE THAT.
UM, BUT WE'RE LOOKING FOR ITEMS THAT HAVE, UM, SIGNIFICANT FINANCIAL STATEMENT IMPACTS THAT WE WOULD THEN NEED TO GET INVOLVED FURTHER ON.
UM, AND SO THAT'S WHAT WE'RE, ANY KIND OF FRAUD, UM, PROCESSES THAT COULD LE LEAD TO MATERIAL MISSTATEMENT, THOSE
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KINDS OF THINGS IS WHAT WE'RE REVIEWING FOR WHEN WE'RE REVIEWING THOSE REPORTS.UM, AND THEN IF THERE ARE ANY FINDINGS FROM THE PRIOR YEAR, FEDERAL FINANCIAL AUDIT, THE FEDERAL SINGLE AUDIT, WE WILL ALSO LOOK FOR THOSE AND HOW THOSE PROCESSES HAVE BEEN CHANGED TO MAKE SURE THERE ARE NO FINDINGS, AGAIN FOR THOSE PROCESSES AND THOSE PROGRAMS. AND THESE NEXT TWO, UH, TWO OR THREE SLIDES ARE JUST REPEATING SOME OF THE SAME THINGS THAT WE TALKED ABOUT.
THOSE, UM, REQUIRED COMMUNICATIONS FROM US.
THEY'RE THE SAME AS WHAT WE PRESENTED TO YOU DURING SEPTEMBER.
UM, BUT IT'S JUST COMMUNICATING WHAT WAS IN OUR ENGAGEMENT LETTER, UM, WHAT'S OUR RESPONSIBILITY UNDER, UM, THE GENERAL AUDITING STANDARDS, GENERAL GOVERNMENT AUDITING STANDARDS, AND UNIFORM GUIDANCE.
UM, AND THAT'S REALLY ABOUT IT THAT WE WANTED TO MAKE SURE WE TALKED TO YOU ALL ABOUT.
DO YOU HAVE ANY QUESTIONS FOR US? OKAY.
YOU'VE HEARD THE REPORT, UM, CHAD LOOKS LIKE YOU.
I THINK THAT THIS ALL CAME ABOUT AS A RESULT OF, UH, COUNCILMAN WILLIAMS. YOU KIND OF PUT THIS ON THE TABLE FOR US THAT ANSWER SOME OF THE QUESTIONS YOU HAVE, OR DO YOU HAVE SOME QUESTIONS AS IT RELATES TO WHAT'S BEEN PRESENTED? NO, UH, NO.
THANK YOU FOR THE PRE, EXCUSE ME.
THANK YOU FOR THE PRESENTATION.
I DON'T HAVE ANY QUESTIONS OF YOU RIGHT NOW.
I MAY HAVE SOME LATER, BUT I'LL GET 'EM TO YOU.
ANY OTHERS? WELL, LET ME JUST SAY, BASED ON WHAT I'VE JUST HEARD, UH, IT SOUNDS LIKE YOU DO A VERY GOOD JOB OF AUDITING, AND IT SOUNDS LIKE YOU'RE AUDITING PRIMARILY OUR FINANCE DEPARTMENT PRIMARILY.
UM, THEY PROVIDE US THE TRIAL BALANCE, SO THE, THE NUMBERS FOR 9 30 23, AND THEN THAT'S REALLY WHERE IT STARTS.
BUT WE DO TOUCH A LOT OF DEPARTMENTS BECAUSE OF THE SINGLE AUDIT, UM, GOING THROUGH PAYROLL, HR, LOOKING AT RISK.
UM, YEAH, WE ARE PRIMARILY THERE ARE, THERE ARE POINT PEOPLE THAT'S WHO WE TEAM UP WITH AND MAKE SURE THE AUDIT IS STAYING ON TRACK, UM, JUST FOR KIND OF A CENTRALIZATION OF THE ORGANIZATION OF COMPLETING THE AUDIT.
BUT WE DO, UH, AFFECT A LOT OF THE CITY'S DEPARTMENTS, SADLY,
NORMALLY WHEN I THINK ABOUT AUDITS, UM, I'M THINKING NORMALLY ABOUT, UH, A CHECK AND BALANCE SYSTEM, RIGHT? WHERE YOU'RE COMING IN AND YOU'RE ACTUALLY, UH, CHECKING, UH, ON WHAT HAS ALREADY BEEN DONE OR, BUT IT SOUNDS LIKE YOU ALSO DO A LOT OF INDEPENDENT TYPE OF, UH, AUDITING, UH, AND THEN MAYBE A COMPARISON OF WHAT HAS BEEN DONE TO SEE THAT EVERYTHING WAS DONE APPROPRIATELY AND CORRECTLY.
RIGHT? I THINK THAT'S OUTSTANDING.
AND JUST BASED ON THE LITTLE THAT I DO KNOW ABOUT, UH, OUR PRESENT AUDITING SYSTEM IS NECESSARY, IT'S NECESSARY TO KEEP US ALL, UH, WALKING THE STRAIGHT AND NARROW.
SO THANK YOU SO VERY MUCH FOR THE PRESENTATION THAT YOU HAVE, UH, DONE HERE.
AND LET ME, UH, TURN IT BACK OVER TO YOU, JED.
WE, WE APPRECIATE HOW WELL EVERYONE WORKS TOGETHER TO GET IT COMPLETED.
WITH THAT, UH, JET, YOU WANNA GO AHEAD AND PROCEED TO THE NEXT ITEM? YES, SIR.
UM, ATRIUM FACILITY RENTAL PROGRAM CHAIRMAN, UM, WHEN I WAS PREPARING THE AUDIT PLAN FOR FISCAL YEAR 2023, THIS IS ONE OF THE REQUESTS THAT CAME THROUGH YOU.
UM, SO THAT'S THE REASON WHY WE ADDED TO THE AUDIT PLAN, AND THAT'S WHY WE DID THIS AUDIT.
I DO WANT TO TAKE A MOMENT TO THANK AMY AND KELVIN FOR ALL.
UH, I'M NOT BRAGGING ABOUT THEM.
UH, THERE IS NOT ONE TIME THAT WE EVER RECEIVED ANY KIND OF PUSHBACK.
THEY WERE EXTREMELY TRANSPARENT, YES, EXTREMELY COOPERATIVE, AND PROVIDED THE INFORMATION.
UM, AND ZACH CAN, UH, TESTIFY THIS, BUT BEFORE HE EVEN SENT OUT THE EMAIL, USUALLY WE EITHER GET A CALL OR THEY'LL LET US KNOW, WE'LL GET YOU THE INFORMATION.
SO I, I DO APPRECIATE THAT LEADERSHIP AND ALSO WORKING WITH, WITH US.
ALSO WANT TO THANK MITCH, UH, FOR HIS SUPPORT THROUGHOUT THIS AUDIT.
AND IT, IT IS VERY IMPORTANT FOR THE AUDIT TO HAVE THAT SUPPORT.
SO WHEN WE KNOW THAT WE HAVE THAT SUPPORT, YOU KNOW, IT'S A, IT'S A COLLABORATIVE EFFORT.
IT'S A TEAM EFFORT THAT MAKES A DIFFERENCE.
SO I REALLY DO WANT TO APPRECIATE THEM FOR THAT.
UM, UM, WE HAD THREE OBJECTIVES FOR THE AUDIT.
UH, THE FIRST ONE WAS TO VERIFY THAT RENTAL FEES ARE CHARGED IN ACCORDANCE WITH THE APPROVED FEE SCHEDULE.
SECOND ONE WAS TO DETERMINE IF APPROVED CATERERS COMPLY WITH AGREED UPON TERMS AND CONDITION.
AND THE LAST PIECE WAS TO EVALUATE INTERNAL CONTROLS OVER THE COLLECTION AND DEPOSIT PROCESS.
I, I KNOW AMY AND KEVIN, THEY HAVEN'T BEEN HERE FOR TOO LONG, SO
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OUR SCOPE WAS MAINLY FISCAL YEAR 22 AND 23.UH, AT THIS POINT, UH, AARON AND ZACH, THEY DID MOST OF THE WORK.
UH, ZACH IS GOING TO, IN HIGH LEVEL, GIVE A SUMMARY OF THE PROGRAM ITSELF.
SO, UH, EVERYONE WOULD HAVE A CLEAR UNDERSTANDING.
AND THEN AFTER THAT, UH, AARON WILL GET INTO SOME OF THE OPPORTUNITIES FOR IMPROVEMENT THAT WE'VE DISCUSSED WITH MITCH AND HIS TEAM.
UH, LIKE YOU SAID, I'M GONNA GIVE A BRIEF BACKGROUND OF, UH, THE PROGRAM.
SO THE ATRIUM IS A, AN AWARD-WINNING VENUE THAT'S LOCATED WITHIN CITY'S, UM, DOWNTOWN AREA, CAPABLE OF ACCOMMODATING 450 ATTENDEES FOR EVENTS HELD BOTH BY THE CITY AND THE PUBLIC.
UM, FOR 20 YEARS, THE CONTEMPORARY BALLROOM HAS HOSTED BANQUETS, CONVENTIONS, WEDDINGS, PRIVATE PARTIES, AND VARIOUS OTHER SOCIAL EVENTS FOR GARLAND RESIDENTS, NON-RESIDENTS, BUSINESSES, AND NONPROFIT ORGANIZATIONS.
SO IN FISCAL YEAR 22, THERE WERE 123 EVENTS WITH 79 OF THEM BEING FROM NONPROFIT OR RESIDENT CUSTOMERS, 25 OF THEM BEING FROM AFFILIATE OR ASSOCIATE CUSTOMERS.
AND 19 OF THEM BEING WITH COMMERCIAL, UH, OR NON GARLAND RESIDENT CUSTOMERS, UH, INCLUDED WITHIN THAT A HUNDRED TWENTY THREE THIRTY OF THOSE WERE, UH, COMPLIMENTARY OR NO CHARGE EVENTS WITH 25 OF THOSE BEING FOR THE CITY OF GARLAND, TWO OF THEM BEING FOR THE GCAC, TWO OF THEM BEING AFFILIATES, AND ONE BEING, UH, ANOTHER NON-PROFIT.
NO, DOWN IN FISCAL YEAR 23, THERE WERE 134 EVENTS WITH 103 OF THEM BEING NON-PROFIT OR RESIDENT CUSTOMERS, 16 OF THEM BEING WITH AFFILIATES OR ASSOCIATES, AND 15 OF THEM BEING COMMERCIAL OR NON GARLAND RESIDENT CUSTOMERS.
AND AGAIN, WITHIN THAT A HUNDRED THIRTY FOUR THIRTY OF THEM WERE COMPLIMENTARY, NO CHARGE 25.
AGAIN, OF THOSE BEING CITY OF GARLAND EVENTS, FOUR OF THEM BEING GCAC AND ONE OF THEM BEING AN AFFILIATE, GO DOWN THERE.
SO IN FISCAL YEAR 22, THEY ATRIUM EARNED $192,600 IN REVENUE.
AND IN FISCAL YEAR 23 THAT WENT TO 206,700.
UM, ROOM AND RENTAL, UH, ROOM AND EQUIPMENT RENTAL FEES ARE CHARGED FOR PRIVATE EVENTS SUCH AS WEDDINGS AND PRIVATE BANQUETS AND CITY SPONSORED EVENTS ARE EXEMPT FROM ROOM OR EQUIPMENT RENTAL FEES OR PROVIDED A DISCOUNT.
UM, FEES ASSESSED AND COLLECTED BY THE ATRIUM INCLUDE BOOKING DEPOSITS, CATERING FEES, ROOM RENTAL FEES, AND EQUIPMENT RENTAL FEES.
UM, WITH EACH OF THEM BEING LISTED IN THE FEE SCHEDULE APPROVED BY THE CITY COUNCIL, THE, THE LATEST FEE SCHEDULE IS APPROVED WITHIN THE FISCAL YEAR 23 BUDGET PROCESS.
UM, FURTHER DOWN, COULD YOU GO TO THIS ONE? OKAY.
UH, SO WITHIN THAT, UM, REVENUE FOR THE YEAR, UM, 100 IN FISCAL YEAR TWENTY TWO, A HUNDRED TWENTY SEVEN, UH, THOUSAND 300 CAME FROM ROOM RENTAL.
$41,039 CAME FROM CATERING FEES.
AND 24,243 CAME FROM EQUIPMENT RENTAL WITHIN FISCAL YEAR 23, 130 9,600 CAME FROM ROOM RENTAL, 39,600 COMING FROM CATERING FEES AND 27,500 COMING FROM EQUIPMENT RENTAL.
SO I JUST BRIEFLY WANT TO KIND OF GO OVER SOME OF THE AREAS THAT WE LOOKED AT DURING THE AUDIT AND GIVE A OVERVIEW OF THAT.
SO WE LOOKED AT THE BOOKING DEPOSITS.
UM, SO CONTACT INFORMATION'S AVAILABLE ON THE CULTURAL ARTS WEBSITE FOR CUSTOMERS INTERESTED IN BOOKING AN EVENT AT THE ATRIUM, UM, COORDINATING WITH THE BOOKING STAFF, THE CUSTOMER MAY, UH, A CUSTOMER MAY RESERVE A DATE AND TIME BY MAKING A NON-REFUNDABLE DEPOSIT OF 50% OF THE ROOM RENTAL COST, UH, ROOM RENTAL FEE, NO.
SO RENTAL RATES ARE BASED ON THE SPECIFIC ROOM THAT'S BEING RENTED THE DAY OF THE WEEK, AND THE TYPE OF CUSTOMER HOSTING THE EVENT.
UM, SO THIS IS A SCHEDULE THAT WE HAVE IN THE REPORT, UM, FROM THE ROOM RATES OF THE VARIOUS FEES CHARGED BY THE ATRIUM BASED ON THE CUSTOMER TYPE AND THE LENGTH OF IT, OR THE DAY OF THE RENTAL.
UM, THE TOP ONE IS FOR THE MAIN ATRIUM, THE ENTIRE ATRIUM, AND THE BOTTOM ONE IS IF YOU JUST, UH, RENT THE LOBBY.
SO NEXT WE LOOKED AT THE CATERING FEE, UM, ATRIUM, CUSTOMERS MAY HIRE FOOD AND ALCOHOL CATERERS FOR THEIR EVENT TO ASSIST WITH THIS.
THE ATRIUM PROVIDES A LIST OF APPROVED CATERERS THAT PROVIDES CUSTOMERS WITH, UM, EXPERIENCED CATERS THAT HAVE OPERATED AT, AT THE ATRIUM IN THE PAST.
SO CURRENTLY THERE ARE 21 APPROVED CATERERS ON THE LIST.
UM, ENC COMP, UH, ENCOMPASSING, UM, MULTIPLE CUISINES.
UM, SO WHILE THE CATERING AGREEMENT IS BETWEEN THE CUSTOMER AND THE CATERER, THE ATRIUM DOES REQUIRE FEED DIRECTLY FROM THE CATERING COMPANY.
UH, THESE FEES DIFFER D UH, BETWEEN APPROVED AND NON-APPROVED CATERERS AND BETWEEN CATERERS LOCATED WITHIN THE CITY AND WITHOUT, UH, OUTSIDE OF THE CITY OF GARLAND.
UH, CATERERS LOCATED WITHIN GARLAND MUST PAY THE ATRIUM 10% OF THE INVOICED FOOD COST TO THE CUSTOMER AND CATERS LOCATED OUTSIDE THE CITY MUST PAY 15% OF THAT.
IN ADDITION TO THIS, CUSTOMERS MUST
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PAY $5 PER ATTENDEE IF THEY CHOOSE TO USE A CATERER THAT IS NOT ON THE APPROVED CATERER'S LIST.SO, JUST TO, UM, PUT THESE PERCENTAGES INTO REAL DOLLARS, WE PROVIDED FOUR EXAMPLES, UH, IN THE TABLE BELOW.
JUST TO DEMONSTRATE, UH, A SCENARIO.
IN THIS SCENARIO, WE USE THE FOOD COST OF $2,500 AND 100 GUESTS.
UM, AND IN THESE EXAMPLES, THE TOTAL FEES PAID TO THE ATRIUM RANGE FROM $250 TO 875.
SO REAL QUICK, UM, IF SOMEONE WERE TO USE A CATERER THAT'S LOCATED WITHIN GARLAND THAT IS ON THE APPROVED LISTING, THE 2,500 UH, DOLLARS FOOD CHARGE WOULD BE A, UM, EQUAL A $250 FEE FROM THE CATERER TO THE ATRIUM.
IF THEY'RE LOCATED OUTSIDE OF THE CITY OF GARLAND AND THEY'RE ON THEIR APPROVED LISTING, THAT 15% FEE WOULD BE $375 FROM THE CATERER TO THE ATRIUM.
IF THEY ARE LOCATED WITHIN GARLAND, BUT NOT ON THE APPROVED LISTING, IT'S $250 FROM THE CATERER AND THAT $5 PER PERSON FEE, WHICH MAKES IT $500 FROM THE CUSTOMER DUE TO THE ATRIUM.
AND LASTLY, UH, IF THEY CHOOSE A CATERER THAT'S LOCATED OUTSIDE OF GARLAND AND ALSO NOT ON THE APPROVED LISTING, THAT'S $375 FROM THE CATERER TO THE ATRIUM, AND $500 FROM THE CUSTOMER TO THE ATRIUM TOTALING $875.
SO NEXT WE LOOKED AT THE EQUIPMENT FEE.
UM, THE ATRIUM OFFERS, UM, EQUIPMENT RENTAL PACKAGES OR INDIVIDUAL ITEMS SUCH AS MICROPHONES, UM, PROJECTORS, UH, BASICALLY ANYTHING THAT YOU NEED FOR AN AN EVENT.
UH, AND LASTLY, WE LOOKED AT DAMAGES.
CANCELLATIONS, AND REFUNDS AND CANCELLATIONS ARE SUBJECT TO THE FORFEITURE PAYMENTS, INCLUDING 50% OF THE TOTAL RENTAL AND EQUIPMENT FEES IF THE EVENT'S CANCELED, UH, MORE THAN 30 DAYS, UH, BEFORE THE EVENT OR, AND THEN 100% OF TOTAL RENTAL AND EQUIPMENT FEES PAID AT THAT TIME IF THE EVENT IS CANCELED WITHIN 30 DAYS.
SO THE ATRIUM STAFF MANAGES A FULL CALENDAR OF EVENTS AND PROVIDES BOTH THE CITY AND THE PUBLIC WITH QUALITY SERVICES TO SUPPORT THEIR OPERATIONS.
WE'VE DEVELOPED RE RECOMMENDATIONS FOR CONSIDERATION IN THE FOLLOWING AREAS.
UH, THE FIRST IS PRICING STRATEGY.
UM, FOR CONTEXT, THE LAST RENTAL PRICING ADJUSTMENT OCCURRED RELATIVELY RECENTLY DURING THE FISCAL YEAR 2023 BUDGET PROPOSAL.
SO AROUND SEPTEMBER OF LAST YEAR DURING THE AUDIT, WE SURVEYED SEVEN COMPARABLE MUNICIPAL OWNED AND AFFILIATED VENUES IN NORTH TEXAS TO UNDERSTAND AND COMPARE THEIR RATES AND CATERING SELECTION PROCESSES TO THE ATRIUMS. THE RESPONSES SHOW THAT THE RESIDENT, THAT THE ATRIUM OFFERS MORE AFFORDABLE ROOM RATES AND DISCOUNTS TO CERTAIN TYPES OF CUSTOMERS, RESIDENTS VERSUS NON-RESIDENTS.
FOR EXAMPLE, NO OTHER SURVEYED FACILITY HAS AN APPROVED CATERER LISTING, AND ONLY ONE VENUE CHARGES A CATERING FEE AT ALL, WHICH IS BASED ON THE NUMBER OF GUESTS AT AN EVENT.
AS ZACH PRESENTED EARLIER, THE ATRIUM'S CATERING FEE STRUCTURE HAS TWO COMPONENTS.
THE FIRST IS A PERCENTAGE OF THE ENTIRE CATERING INVOICE PAID BY THE CATERER, A PERCENTAGE, WHICH IS BASED ON WHETHER THEY'RE LOCATED INSIDE OR OUTSIDE OF GARLAND.
THE SECOND IS A $5 PER GUEST FEE PAID BY THE CUSTOMER IF THEY USE A CATERER THAT'S NOT ON THE ATRIUM'S APPROVED CATERER LISTING.
I'LL JUST LEAVE THIS UP FOR A LITTLE BIT SO YOU CAN LOOK AT IT.
BASED ON OUR INTERVIEWS WITH ATRIUM STAFF, IT'S APPARENT THERE'S BEEN SOME DIFFICULTY OBTAINING PAYMENTS FROM CUSTOMERS FOR ADDITIONAL LAST MINUTE EQUIPMENT RENTAL FEES, WHICH USUALLY OCCURRED DURING THE EVENT.
UM, CUSTOMERS OFTEN EXCEEDING THEIR RESERVED TIME BLOCK AND CATERERS NOT PAYING FEES ON TIME, ESPECIALLY AFTER THE EVENT HAS OCCURRED.
UM, WE RECOMMEND PERFORMING A STUDY TO REEVALUATE THE PRICING STRUCTURE, COLLECTION REQUIREMENTS AND TIME BLOCK AVAILABILITY TO BEST MEET THE CITIES AND PUBLIC'S NEEDS MANAGEMENT CONCURS AND PLANS TO SEEK COUNSEL AND A CITY ADMINISTRATION INPUT ON A PURPOSE STATEMENT FOR THE ATRIUM, AS THE STATEMENT WILL HELP PROVIDE GUIDANCE ON OPERATIONS AND A PRICING APPROACH.
ATRIUM STAFF WILL USE THE PURPOSE STATEMENT ALONG WITH THE INTERNAL AUDIT BENCHMARK FACILITIES, UH, FROM EXHIBIT B AND POTENTIAL ADDITIONAL, UH, FACILITIES TO DRAFT UPDATES FOR PRICING STRUCTURE, COLLECTION REQUIREMENTS, AND TIME BLOCK AVAILABILITY.
THE DRAFT UPDATES WILL BE PRESENTED TO COUNCIL AS PART OF THE BUDGET PROCESS FOR POTENTIAL PRICING MODIFICATIONS, EFFECTIVE FISCAL YEAR 2025, JANUARY, 2024, UH,
[00:30:01]
IS THE IMPLEMENTATION DATE FOR DEFINING THE PURPOSE STATEMENT MARCH, 2024 FOR DRAFT UPDATES, SUMMER 2024 FOR COUNCIL REVIEW AND BUDGETING PROCESS.AND OCTOBER 1ST, 2024 WILL BE THE EFFECTIVE DATE OF ANY AND ALL POTENTIAL FEE.
MODIFIC MODIFICATIONS AND POLICY PROCEDURE UPDATES, AIDS.
THE SECOND AREA OF OUR RECOMMENDATIONS IS THE APPROVED CATERER LIST.
THE REQUIREMENTS FOR BECOMING AN APPROVED CATERER ARE NOT OFFICIALLY ESTABLISHED OR STANDARDIZED.
UM, WHILE IT MAY BENEFIT BOTH THE APPROVED CATERER AND THE ATRIUM, THE LACK OF AN ESTABLISHED QUALIFYING PROCESS COULD LEAD NON-APPROVED CATERERS TO PERCEIVE THE SELECTION PROCESS AS PREFER PREFERENTIAL TREATMENT.
IT'S ALSO WORTH NOTING 11 OF THE 21 APPROVED CATERERS ARE LOCATED OUTSIDE OF GARLAND.
OUR RECOMMENDATION IS TO REEVALUATE THE NECESSITY OF AN APPROVED CATERER LISTING, OR STANDARDIZE, CLARIFY AND TRANSPARENT THE CRITERIA FOR QUALIFYING AS AN APPROVED CATERER MANAGEMENT.
CONCURS WITH THIS RECOMMENDATION AND POINTS OUT, FOOD AND BEVERAGE SERVICE IS A KEY COMPONENT TO THE ATRIUM AND IS INCLUDED IN ALMOST ALL, IF NOT ALL EVENTS.
FOOD AND BEVERAGE SERVICE CARRIES MOST LIABILITY AND POTENTIAL FOR DAMAGE TO THE FACILITY.
IN ADDITION, THERE ARE CERTAIN SAFETY STANDARDS INVOLVED WITH FOOD PREPARATION, AND THE ATRIUM'S REPUTATION IS DIRECTLY ASSOCIATED, UH, WITH CATERING.
WORKING WITH A LIST OF APPROVED CATERERS ALLOWS THE ATRIUM TO MAINTAIN INSURANCE REQUIREMENTS, MAINTAIN A LEVEL OF ASSURANCE ABOUT CATERER ABILITY AND SERVICE, AND PROVIDE CLIENTS WITH A VARIETY OF CUISINES AND PRICE POINTS.
UH, ONE APPROACH COULD BE TO REQUIRE ALL CLIENTS TO USE APPROVED CATERERS ONLY.
UM, BASED ON THE NUMBER OF CULTURAL USES AT THE ATRIUM, STAFF IS CONCERNED RENTALS WOULD BE LOST, UH, IF ALL CLIENTS WERE REQUIRED TO USE APPROVED CATERERS, ONLY IF CLIENTS HAVE THE OPTION TO SELECT A CATERER OR NOT ON THE APPROVED LIST, THERE MUST BE A WAY TO DISTINGUISH BETWEEN USING AN APPROVED CATERER AND A NON-APPROVED CATERER.
ASSESSING FEES FOR THE USE OF NON-APPROVED CATERERS.
CATERERS SELECTION IS CLIENT CHOICE.
ASSESSING FEES TO THE CLIENT FOR NON-APPROVED CATERERS EMPOWERS THE CLIENT TO MAKE THE BEST DECISION FOR THEIR EVENT.
STAFF WILL DRAFT A CRITERIA AND STANDARDIZE THAT STANDARDIZES AND CLARIFIES, UH, APPROVED CATER ELIGIBILITY AND REASSESS FEES ASSOCIATED WITH USING NON-APPROVED CATERERS.
THE DRAFT UPDATES WILL BE PRESENTED TO COUNCIL AS PART OF THE BUDGET PROCESS FOR POTENTIAL PRICING MODIFICATIONS.
IMPLEMENTATION DATES INCLUDE JANUARY, 2024 FOR, FOR DEFINING THE PURPOSE STATEMENT, MARCH, 2024 FOR DRAFT UPDATES, SUMMER 2024 FOR COUNCIL REVIEW AND BUDGETING PROCESS.
AND OCTOBER 1ST, 2024 WILL BE THE EFFECTIVE DATE OF ANY AND ALL POTENTIAL FEE MODIFICATIONS AND POLICY AND PROCEDURE UPDATES.
OUR THIRD AREA OF RECOMMENDATIONS IS POLICY AND PROCEDURES.
THE ATRIUM'S POLICIES, PROCEDURES, AND OPERATING RULES DOESN'T MENTION INSURANCE OR CONTRACT REQUIREMENTS FOR PARTICIPATING CATERERS.
HOWEVER, THE PREFERRED CATERING AGREEMENT AND ONE-TIME CATERING AGREEMENT REQUIRE WORKERS' COMPENSATION INSURANCE, COMMERCIAL GENERAL LIABILITY INSURANCE, BUSINESS, COMMERCIAL AUTOMOBILE LIABILITY INSURANCE, AND COMMERCIAL CRIME INSURANCE.
WE SAMPLED 55 EVENTS, UM, AND FOUND THAT ONE CATERER'S PROOF OF GENERAL LIABILITY INSURANCE WASN'T RETAINED FOR WITH THE ATRIUM'S RECORDS, ONE CATERER'S SIGNED A CATERING AGREEMENT WASN'T RETAINED, NOR DID THIS CATERER PROVIDE AN INVOICE OR PAY THE REQUIRED 15% FEE, WHICH IS ESTIMATED TO BE AROUND A $400 LOSS.
THE ATRIUM DIDN'T RECEIVE A CUSTOMER'S CATERING FEE OF $5 PER GUEST AS REQUIRED FOR NON-APPROVED CATERERS, RESULTING IN A LOSS OF $750, RESULTING IN AN ESTIMATED TOTAL LOSS OF, UM, $1,150.
OUR SAMPLES ALSO SHOWED EVENTS WITH FEE EXCEPTIONS, INCLUDING COMPLIMENTARY SETUP TIMES AND DISCOUNTED EQUIPMENT.
USE THE ATRIUM'S POLICIES, PROCEDURES, AND OPERATING RULES ALSO LAY OUT A REFUND TIMELINE CONTRADICTORY TO THE 50% NON-REFUNDABLE RENTAL RATE DEPOSIT LISTED IN THE CONTRACT.
UH, WE RECOMMEND REVISING POLICIES AND PROCEDURES TO INCLUDE DOCUMENT SUBMISSION AND RETENTION REQUIREMENTS AND MANAGEMENT MONITORING OF REQUIREMENTS, REVISING THE RENTAL POLICY AND CONTRACTS TO INCLUDE AUTHORITY LEVELS FOR ATRIUM STAFF TO APPROVE SPECIFIC PRICING ADJUSTMENTS, DISCOUNTS AND COMPLIMENTARY EVENTS, AND REVISING THE RENTAL POLICY AND CONTRACTS TO BETTER CLARIFY THE CANCELLATION AND REFUND.
POLICY MANAGEMENT CONCURS AND EXPLAINS THAT, UH, POLICIES AND PROCEDURES ARE DIRECTLY RELATED TO PRICING AND FEES.
REVISIONS NEED TO BE HOLISTICALLY INTEGRATED AND MUST BE DELIVERED AS A COMPLETE PACKAGE FEE.
ADJUSTMENTS ARE PART OF THE BUDGET PROCESS WITH SCHEDULE OF FEES.
STAFF WILL REVISE POLICIES AND PROCEDURES TO INCLUDE DOCUMENT SUBMISSION AND RETENTION REQUIREMENTS AND MONITORING
[00:35:01]
OF REQUIREMENTS BY MANAGEMENT.STAFF WILL REVISE THE RENTAL POLICY AND CONTRACTS TO INCLUDE AUTHORITY LEVELS FOR ATRIUM STAFF TO APPROVE SPECIFIC PRICING, ADJUSTMENTS, DISCOUNTS, AND CO COMPLIMENTARY EVENTS.
STAFF WILL REVISE THE RENTAL POLICY AND CONTRACTS TO BETTER CLARIFY THE CANCELLATION AND REFUND POLICY.
THE DRAFT UPDATES WILL BE PRESENTED TO COUNCIL AS PART OF THE BUDGET PROCESS FOR POTENTIAL PRICING MODIFICATIONS, EFFECTIVE FISCAL YEAR 2025.
AND THE IMPLEMENTATION DATES ARE THE SAME AS, UH, THE PREVIOUS FINDINGS WITH JANUARY, 2024.
UM, DEFINING THE PURPOSE STATEMENT, MARCH, 2024, DRAFT UPDATE SUMMER 2024 FOR COUNCIL REVIEW AND BUDGET PROCESS IN OCTOBER 1ST IS THE EFFECTIVE DAY FOR ALL MODIFICATIONS.
OUR FINAL AREA OF RECOMMENDATIONS IS ACCESSES AND SEGREGATION OF DUTIES.
OUR REVIEW OF THE ATRIUM SYSTEM ACCESSES REVEALED ALL ATRIUM STAFF HAVE ADMINISTRATIVE SYSTEM PRIVILEGES, SUCH AS THE ABILITY TO BOOK AND DELETE EVENTS, AS WELL AS VOID PAYMENTS.
WHILE THIS MAY BE NECESSARY DUE TO LIMITED STAFF AND AFTER HOUR OPERATIONS, WE DIDN'T FIND EVIDENCE OF A PERIODIC REVIEW OF SYSTEM ACTIVITY.
SO WE RECOMMEND DEVELOPING AND IMPLEMENTING A POLICY DETAILING APPROPRIATE SYSTEM ACCESSES PROCEDURES FOR AVOIDING CANCELING AND ADJUSTING PAYMENTS, AND IMPLEMENTING MANAGERIAL REVIEW OF SYSTEM ACTIVITY MANAGEMENT CONCURS AND EXPLAINS ATRIUM STAFF DOESN'T ACCEPT ANY CASH PAYMENTS.
INSTEAD, CUSTOMERS ARE SENT AN ONLINE LINK TO MAKE SECURE CREDIT CARD PAYMENTS.
STAFF ONLY ACCEPTS CHECKS, MONEY ORDERS, AND CASHIER CHECKS MADE TO THE CITY OF GARLAND AND ARE DEPOSITED IN ACCORDANCE TO THE CITY OF GARLAND'S DEPOSIT PRACTICES.
THE ATRIUM'S EVENT RESERVATION SYSTEM, TIME AND DATE STAMPS ALL ACTIVITY BY USER AND A LOG OF ACTIVITY IS AVAILABLE TO TRACK ALL ACTIONS OF USERS.
STAFF WILL DEVELOP AND IMPLEMENT A POLICY DETAILING APPROPRIATE SYSTEM ACCESSES PROCEDURES FOR VOIDING, CANCELING AND ADJUSTING PAYMENTS BASED ON CITY OF GARLAND'S FINANCE DEPARTMENT'S.
RECOMMENDATION STAFF WILL IMPLEMENT A CALENDAR MANAGERIAL REVIEW OF SYSTEM ACTIVITY BASED ON CITY OF GARLAND'S FINANCE DEPARTMENT'S.
RECOMMENDATION IMPLEMENTATION DATES ARE THE SAME WITH JANUARY 20, 24 AS THE PURPOSE STATEMENT.
MARCH, 2024, DRAFT UPDATE, SUMMER 2024, COUNCIL REVIEW AND BUDGET PROCESS ON OCTOBER 1ST, 2024 IS THE EFFECTIVE DATE FOR MODIFICATIONS.
DO YOU HAVE ANY QUESTIONS?
MR. CHAIRMAN, IF THAT'S ALL RIGHT.
ONE, UH, AGAIN, WOULD LIKE TO, UH, THANK THE AUDIT TEAM AS ALWAYS.
THEY DO HELP US FIND THINGS WHERE WE CAN MITIGATE RISK, IMPROVE PROCEDURES, PROCESSES, AGREEMENTS.
UH, A LOT OF IT SOMETIMES IS THE DOCUMENTATION TYPE THINGS THAT WE NEED TO DO.
SO THERE, THERE ARE SEVERAL THINGS IN HERE AND, AND THE TEAM HAS ALREADY LISTED OUT SOME OF THE THINGS THAT WE'VE AGREED THAT WE'RE GONNA TIGHTEN UP TO.
UH, I, I WOULD LIKE TO POINT OUT TO YOU, AND IT'S ONE OF THE THINGS, AND WE TALKED A LOT WITH THE AUDIT TEAM ABOUT WHEN WE LOOK AT FEES, UM, UH, AS MANY OF MY TEAMS, NOT ONLY, UH, AMY AND TIFFANY AND MANY OTHERS, REMIND ME IT'S, IT'S A LITTLE MORE OF AN ART THAN A SCIENCE.
AND THAT'S ONE OF THE THINGS, AND I TELL YOU, IT'S SOMETHING THAT WE LOOK AT ON A REGULAR BASIS EVERY YEAR OR TWO.
WE'RE ACTUALLY ON THE LOWER END OF THE SCALE WHEN WE LOOK AT THESE THINGS WHEN WE TALK.
I THINK ONE OF THE, ONE OR TWO OF THE, THE RESPONSES IN THERE TALKED ABOUT COUNCIL FEEDBACK ON SOME OF THE FEES.
AND, AND LET ME TELL YOU WHERE WE'RE GOING WITH THAT.
THAT WHAT THAT SIMPLY MEANS IS WHERE WE'VE BEEN GOING HISTORICALLY IS WE WALK A BALANCE.
TYPICALLY FRIDAY, SATURDAY, SUNDAYS ARE MORE OF OUR PREMIER NIGHTS FOR THE, THE, THE WEDDINGS, THE QUINCEANERAS, THE OTHER LARGE PARTIES THAT WE COME IN WITH THOSE KIND OF FEES.
AND THEN TYPICALLY DURING THE WEEK, UH, OTHER EVENTS, OTHER NONPROFITS AND OTHER GROUPS, SOMETIMES IT'S THE CITY AT OTHER.
SO WE WALK A FINE LINE AND AS, AND AS YOU CAN IMAGINE, IF IT'S A PRIVATELY RUN, UH, EVENT CENTER, IT'S PURE PROFIT.
WHAT'S THE, WHAT'S THE PRICE POINT ON THE FEES THAT WE CAN MAXIMIZE PROFIT? WE DON'T CURRENTLY OPERATE THAT WAY.
THE FEES THAT WE COVERED 192,000 I THINK WAS LAST YEAR.
SOMETHING LIKE THAT COVERS A PORTION OF OUR COST, BUT IT ONLY COVERS A PORTION OF THE COST TO OPERATE THE FACILITY BETWEEN THE STAFF, THE FACILITIES, ALL THE THINGS WE HAVE TO DO.
LIKE MOST THINGS WE DO IN THE CITY, WHEN WE RECOVER FEES, IT COVERS A PORTION OF THE COST TO PROVIDE THAT SERVICE TO OUR COMMUNITY.
SO WHAT WE'RE PREPARED TO DO IS MOVE FORWARD WITH A BALANCE WHEN IT COMES TO THOSE FEES.
AND THAT'S SOMETHING THAT WE LOOK AT ALL THE TIME.
WHAT DO WE CHARGE FOR OUR PREMIUM TIME? UH, WHAT DO WE CHARGE TO THE NONPROFITS, TO THE OTHER GROUPS, AND TO WALK THAT FINE LINE WITH THAT BALANCE.
AND THAT'S, THAT'S WHAT WE'RE TRYING TO DO THERE.
UM, AS YOU CAN IMAGINE, WE'VE HAD A LOT OF DISCUSSION
[00:40:01]
ABOUT AN APPROVED CATERERS LIST.THAT'S SOMETHING THAT WE HAVE HAD FOR A LONG, LONG TIME.
WE, WE STILL PREFER TO KEEP IT.
THERE ARE SOME CHALLENGES WITH IT.
MOST, I THINK WE'VE GOT 21, I THINK WE SAID APPROVED CATERERS.
THERE IS A WAY FOR A CATERER WHO'S NOT ON THERE.
IF SOMEBODY'S COMING TO OUR EVENT CENTER TO THE ATRIUM TO HAVE IT, THEY CAN BRING THEIR OWN CATERER.
ONE OF THE CHALLENGE THAT WE TALK A LOT ABOUT IS WE'VE NEVER WORKED WITH THIS CATERER BEFORE, AND WE'VE HAD TIMES, THE TEAM HAS HAD TIMES OVER THE YEARS, WE'VE HAD SOME BAD EXPERIENCES WHEN WE HAVE A BAD CATERER AT EVENT, THAT COMES BACK ON THE REPUTATION OF THE ATRIUM, NOT THE CATERER.
UM, SO PEOPLE THAT COME THAT SHOW UP THAT HAVE A BAD EXPERIENCE OF FOOD, WE SOMETIMES, WE'VE HAD CATERERS THAT SHOW UP, THEY DON'T HAVE ENOUGH STAFF, THEY DON'T HAVE ENOUGH EQUIPMENT, THEY DON'T HAVE ENOUGH WHATEVER.
THEY LEAVE A MESS AFTER THEY LEAVE, EVEN THOUGH THE CONTRACT DOESN'T SAY THAT.
IT'S, IT'S, IT'S A CHALLENGE FOR US TO BALANCE THAT.
UH, WE DO HAVE SOME CATERERS THAT HAVE GONE THROUGH THAT PROCESS AND THEN GOTTEN ON THE APPROVED LIST.
WE NEED TO CLEAN UP WHAT THAT IS AND WHAT THAT PROCESS IS TO GET TO THE APPROVED CATERERS LIST.
BUT, BUT OUR CURRENT PREFERENCE IS TO KEEP THE PROOF CATERERS LIST.
THERE ARE OTHER CITY FACILITIES THAT DO SIMILAR THINGS, AND WE TALKED A LOT ABOUT IT WITH THE TEAM AND WITH THE AUDIT TEAM.
IT'S NOT TOTALLY APPLES TO APPLES, APPLES TO APPLES.
EACH EVENT CENTER DOES THINGS A LITTLE BIT DIFFERENT.
THERE'S A NUMBER OF PRIVATE, UM, EVENT CENTERS THAT ARE A LITTLE MORE, SOME PLACES HAVE GONE TO ONLY, THEY ONLY HAVE THEIR OWN CHEF.
THAT'S WAY TOO CHALLENGING FOR US WITH ALL THE DIFFERENT CULTURES THAT WE SERVE AND THE TYPES OF FOODS THAT THEY BRING IN.
THERE'S NO WAY WE COULD HAVE ONE CATERER, ONE TEAM OF STAFF TO PROVIDE ALL OF THAT.
SO WE, WE WANT PEOPLE COMING TO OUR EVENT CENTER TO BE ABLE TO BRING IN THEIR OWN CATERER.
WE'RE GIVING THEM A LIST OF 21 CATERERS OF VARIOUS TYPES OF FOODS.
SO THERE IS A WAY FOR A NEW CATERER TO GET ON THAT LIST.
CURRENTLY, WE'VE BEEN CHARGING, I THINK IT'S $5 PER PERSON FOR A NEW CATERER, NOT ON THE APPROVED LIST.
WE'VE HAD SOME DISCUSSIONS ABOUT DO WE GO TO A FLAT FEE IF IT'S UNDER THIS MANY, DO YOU CHARGE A FLAT? WHATEVER THAT NUMBER IS INSTEAD OF PER PERSON.
AND IF IT'S OVER THAT NUMBER, A FLAT FEE TO KIND OF HELP SIMPLIFY WHAT THAT IS.
BUT WE RUN SOME RISK WHEN WE HAVE CATERERS THAT WE'VE NEVER USED BEFORE.
UH, AND THERE ARE MANY THAT ARE CATERERS, BUT THEY HAVEN'T, SOMETIMES WE'VE COME ACROSS 'EM WHERE THEY HAVEN'T DONE A LARGE EVENT BEFORE AND THEY DO SMALLER EVENTS AND THEY SHOW UP FOR A LARGE EVENT AND THEY ARE NOT PREPARED.
SO WE'RE WALKING THAT FINE LINE, THAT BALANCE, THAT ART A LITTLE BIT OF SCIENCE, A LITTLE BIT OF ART ON WHAT'S THE BEST WAY TO PROVIDE THESE TYPES OF OPPORTUNITIES AND SERVICES TO OUR COMMUNITY TO PROVIDE THEM FOR THOSE THAT WANT THE LARGE EVENTS TO COME IN ON PREMIUM TIMES.
AND THEN FOR OUR SMALLER NONPROFITS AND OTHER GROUPS THAT USE IT AT OTHER TIMES.
UM, AND I GUESS THAT, AGAIN, THAT EARLIER REFERENCE WAS MORE IF, IF WE AS A CITY COUNCIL AND CITY MANAGEMENT EVER DECIDED WE WANTED TO SHIFT THAT TO MORE OF A PROFIT ORIENTED OR MORE OF THAT KIND OF THING, THEN WE COULD ADJUST OUR MODEL TO THAT.
BUT I, I THINK WHAT I'VE HEARD OVER, OVER MY TENURE OVER THE YEARS AND, AND WHAT I'VE SEEN IS WE, WE WANT TO CONTINUE TO FIND THAT BALANCE TO PROVIDE A VENUE WHERE PEOPLE CAN COME IN AND RENT THAT SPACE AND HAVE A WONDERFUL EVENT, BUT ALSO HAVE SOME OPPORTUNITY FOR SOME OF THOSE NONPROFITS.
AND THEN IT'S, IT'S ALWAYS AN ONGOING, AND WE APPRECIATE THE HELP AND THE, THE DATA AND THE FEEDBACK THAT OTHER VENUES DO.
WE TRY TO DO THE SAME TYPES OF THINGS OVER THE YEARS, AND IT'S A LITTLE BIT OF COMBINATION OF CITY TYPE VENUES, PRIVATE VENUES, THOSE, THAT'S WHERE PEOPLE AND ORGANIZATIONS CAN GO TO HOLD THEIR EVENT.
SO WE TRY TO LOOK AT ALL OF THAT.
AND EVEN WITH THE FEES WE HAVE, EVEN WITH THE, ON A CATERER, NOT ON THE PROOF CATERER LIST, WE'RE STILL AT THE LOW END OF THE SCALE OF WHAT WE'RE CHARGING.
UH, AND WE, WE KNOW THERE'S THAT BALANCE DEFINED PROVIDING THIS TYPE OF VENUE VERSUS IT'S NOT JUST MAXIMIZING PROFIT, BUT THOSE COSTS AND ALL THOSE KINDS OF THINGS.
SO A LOT OF DISCUSSION GOING TO THIS.
I KNOW THE TEAM'S HERE TO ANSWER QUESTIONS.
I KNOW THE AUDIT TEAM CAN HELP US.
WE'VE HAD LOTS OF DISCUSSIONS.
IT'S, IT'S BEEN AN EXCELLENT PARTNERSHIP AS WE'VE GONE THROUGH AND LOOK AT THINGS.
AND THERE'S DEFINITELY THINGS WHERE WE CAN TIGHTEN UP PROCEDURES, DOCUMENTATIONS, UH, SOFTWARE ACCESS, THOSE KINDS OF THINGS WILL HELP US.
BUT WHEN WE GET INTO THE FEES AND THOSE KIND OF THINGS, IT'S MORE OF A POLICY LEVEL DECISION ON HOW WE'RE GONNA
[00:45:01]
TREAT THAT TO WALK THAT BALANCE OR NOT.I ONLY REPEATED MYSELF THREE TIMES, MAYBE FOUR TIMES IN THERE.
I USUALLY DO SEVEN TIMES, SO SOME OF YOU KNOW.
UM, THANK YOU MITCH, FOR, UM, THAT REITERATION.
UH, LET ME GO AROUND THE ROOM AND OKAY, COUNCILMAN, WE'LL START WITH YOU.
YOU WANT ME TO GO FIRST? YES, PLEASE GO.
UH, THANK YOU, MITCH, FOR YOUR CHRISTMAS SPEECH.
YEAH,
UM, I, I SUPPORT EVERY RECOMMENDATION THAT YOU HAD IN THAT REPORT.
IT'S, AS YOU WERE MAKING YOUR REPORT, I THOUGHT, I MEAN, I GET THIS QUOTE EXACTLY RIGHT, BUT IS, UH, ONE SMALL STEP FOR MAN, HMM.
AND I, I, I, I APPLAUD STAFF YOU ALL FOR DOING THAT.
AND, UH, UH, CITY MANAGER'S TEAM FOR, FOR JUMPING ON IT.
UH, JUST WANTED, I'VE GOT A QUESTION FOR, UM, CITY ATTORNEY, UM, APPROVED UNPRO, UM, NOT NON-APPROVED, UH, CATERERS.
UM, IF THERE'S A, IF THERE'S A CLAIM RISK CLAIM, WHETHER THEY'RE APPROVED OR UNAPPROVED, PARTICULARLY UNAPPROVED, DOES THE CITY HAVING A LIABILITY? WHAT, WHAT LIABILITY, WHAT IS IT LIABILITY TO REST, PARTICULARLY FOR UNAPPROVED CATERERS? IT'S A DIFFICULT QUESTION TO ANSWER BECAUSE YOU'D HAVE TO KNOW EXACTLY WHAT HAPPENED TO GIVE RISE TO THE LIABILITY.
I WOULD SAY THAT UNDER THE CIRCUMSTANCE, UH, THE LIABILITY IS GOING TO BE, I MEAN, OBVIOUSLY THE CITY HAS IMMUNITY FOR SOME THINGS, AND, AND DEPENDING ON WHAT THE NATURE OF THE CLAIM WOULD BE, I WOULD SUSPECT IT WOULD BE UNLIKELY FOR IT TO COME BACK ON THE CITY, UH, IN TERMS OF LIABILITY.
I, I, I RAISED THAT QUESTION, UM, FOR THINKING, UH, WHERE I'M GOING WITH THAT IS, AS A PART OF YOUR REPORT AND FINDING, I'M THINKING CHECKS AND BALANCES AS A PART OF THAT, GOING BACK TO MY QUESTION TO THE CITY ATTORNEY ABOUT LIABILITY, I, I, UH, ON, UH, YOU MENTIONED IN YOUR REPORT SOME OF THE FINDINGS WAS, UM, LATE, LATE STARTS LATE EXTENSIONS, LAST MINUTE CHANGES, LAST MINUTE EQUIPMENT RENTALS.
I'M NOT SURE WHAT THE ENTRY IS TO THAT.
UH, BUT ANY THOUGHTS ON, FROM A CONTRACTUAL STANDPOINT, AND MY QUESTION HAS TO DO WITH ENFORCEMENT PROPAGANDA TO THE CITY ATTORNEY.
IF YOU, IF YOU'VE GOT, IF I'VE GOT A CONTRACT THAT SAYS I'M, I'M BOOKING IT FROM SIX, FROM SIX TO 11, I GOT A WRITTEN CONTRACT THAT SAYS THAT OR SAID ENFORCED.
IF, IF, UH, YOU KNOW, YOU, YOU PARTY HARDY AND YOU, YOU JUST GET REALLY CRANKED UP BY 1115 AND, AND THE CROWD WANTS TO STAY IN UNTIL WE, WE OURS, UH, WOULD WE HAVE ANY AREA FOR ENFORCEMENT, MR. CITY ATTORNEY? AND IF SO, WHAT WOULD THAT BE? I WOULD SUSPECT IF THE CONTRACT PROVIDES THAT THERE'S AN ENDING TIME THAT WE CAN THEN WHEN WE GET TO THE ENDING TIME, ASK THE FOLKS TO LEAVE PURSUANT TO THE CONTRACT.
UM, THERE'S PROBABLY PROVISIONS TO THAT EFFECT IN THE CONTRACTS.
IF THERE AREN'T, THEY CAN BE ADDED.
UM, BUT ADDITIONALLY, I MEAN, YOU HAVE, YOU HAVE OTHER PROVISIONS THAT WOULD DEAL WITH DAMAGES THAT ARISE FROM THEM, THEM BREACHING THE AGREEMENT, AND THEN OUR REMEDIES WOULD BE SET FORTH THERE IN THE AGREEMENT AS WELL.
SO IS THERE, WOULD THERE BE ANY WAY, IF IT SAYS 11, IF THERE'S ANY WAY WE CAN, I DON'T WANT LIKE TO USE THE WORD EVICTION.
I DON'T WANT TO BE THAT, THAT, THAT HARD.
UH, IS THERE ANY WAY WE CAN ENFORCE THE TERMS OF THE CONTRACT SO THAT TO ADDRESS THE FINDINGS HERE, THERE, IS THERE ANY LEGAL WAY? I'M NOT, YOU DON'T HAVE TO ANSWER TODAY, BUT I'M JUST THROWING THIS OUT.
IS THERE ANY LEGAL WAY THAT WE CAN ENFORCE THE TERMS OF THE CONTRACT FROM THE CITY STANDPOINT THERE? THERE'S ALWAYS A WAY TO ENFORCE THE TERMS OF
[00:50:01]
AN AGREEMENT.IT JUST DEPENDS HOW WELL IT'S WRITTEN AND, AND WHAT THE PROVISIONS CONTAINED THEREIN.
SO WE COULD TAKE A LOOK AT THAT AND, AND BRING THAT BACK.
I'D APPRECIATE YOU TAKING A LOOK AT THAT AND BRINGING IT BACK.
MITCH, YOU WANNA CHIME IN ON SOME OF THAT? YEAH, YEAH, SIR.
AND, AND THOSE ARE THINGS I THINK WE CAN HANDLE.
TYPICALLY, THE GROUPS, ORGANIZATIONS THAT USE US ON A REGULAR BASIS, WE DON'T HAVE THOSE PROBLEMS WITH, THEY'RE GREAT PARTNERS.
IT'S THE, THE LOAN EXCEPTION, SOMEBODY THAT HADN'T USED THIS BEFORE THAT DOESN'T REALLY JUST KIND OF WANT TO DO THEIR OWN THING.
AND THAT'S WHERE STAFF STEPS IN AND THEY WORK WITH THEM.
AND, AND IT KIND OF GETS BACK TO THAT ART.
I MEAN, I'M, IF IT'S 11 OR 12, WHATEVER, IT'S IN THE CONTRACT EVER, WE'LL WORK WITH THAT ON THEM.
AND IF, IF THEY'RE NOT DOING IT, WE'LL PUSH THEM TO DO THAT.
WORST CASE, WE CAN GET THEM OUT OF THERE WHEN WE NEED TO DO THAT.
ONE OF THE THINGS WE'VE LOOKED AT AND TALKED AT, AND I KNOW THE AUDIT TALKED ABOUT THIS AND, AND WE'VE TALKED ABOUT, UH, ON, ON THE FLIP SIDE, SET UP TIME, I THINK IT TALKED ABOUT SEVEN HOURS IN THERE.
A LOT OF TIMES THAT'S SUFFICIENT.
AND WE'VE ALREADY TALKED ABOUT AN AUDIT TEAM HELPED US WITH THAT.
WE'RE GONNA LOOK AND EXPAND THAT ON THE SETUP TIME TO A LARGER, WE, I DON'T REMEMBER 10 HOURS AGO, 10, 12 HOURS, NINE, GIVING SOME OF THOSE.
AND SOME OF 'EM ARE VERY GOOD AT SETTING UP AND THEY DO IT ALL THE TIME.
OTHERS AREN'T, MOST OF THE TIME THIS IS NOT A PROBLEM EITHER PRE OR POST AT THE END OF THE EVENT.
BUT WHAT WE WILL DO TO, CAN ADDRESS IT AND, UM, YOU KNOW, OUR TEAM WILL WORK WHEN NEEDED WITH THE ATTORNEYS.
YOU KNOW, IF WE HAVE SOMEONE WHO BREACHES THE CONTRACT THAT'S REFUSING TO DO IT, WE, WE CAN DEAL WITH THAT ONE WHEN THEY DO THAT.
AND IF IT GETS SO EGREGIOUS THAT THEY'RE JUST NOT LEAVING AND THEY'RE GOING, WORST CASE WE CAN BRING POLICE INTO IT, BUT THEY'RE NOT COMING BACK.
IF THAT HAPPENS, WE, WE CAN CHOOSE NOT TO RENT TO THEM WHEN THEY EITHER CREATE DAMAGE, THEY'RE VIOLATING THE CONTRACT AND WE WORK WITH ATTORNEY, THE ATTORNEY'S OFFICE ON THOSE KIND OF THINGS.
THAT'S MORE THE EXCEPTION THAN THE RULE.
WHEN THOSE KIND OF THINGS HAPPEN, IT'S USUALLY SOMEBODY THAT'S NEVER USED US BEFORE THAT WAS LOOKING TO RENT SPACE AND THEY RENTED OUR SPACE.
WE HAVE TOOLS TO DEAL WITH THOSE.
AND MY LAST QUESTION HAS TO DO WITH, AND I DIDN'T SEE ANYTHING IN THE POLICY THAT ADDRESSES POTENTIAL CONFLICT OF INTEREST IN RENTAL, THE ATRIUM, UH, MITCH.
I'D LIKE FIRST TO TAKE A LOOK AT THAT.
I CAN, WE CAN TALK ONE-ON-ONE.
I CAN TALK ONE-ON-ONE WITH YOU OR WITH YOU JET.
BUT I'D LIKE FOR US TO TAKE A LOOK AT THAT ON THE, ON THE CATERING CATERER'S END TO ENSURE THAT WE ARE, WE ARE A GOOD IN THAT AREA.
WELL, UM, I ALSO CONCUR WITH THE RECOMMENDATIONS, AND THIS WAS A FA A FANTASTIC PRESENTATION, BUT, UM, WHAT, UH, I WOULD FEEL THAT, UH, THAT HAVING A, HAVING THE CATERERS APPROVED, THAT WOULD BE SOMETHING THAT WOULD BE IMPORTANT BECAUSE THAT WAY WE WOULD HAVE, I'M ASSUMING THAT WE KEEP RECORDS OF THEIR FOOD HANDLING CERTIFICATIONS AND, UH, LIABILITY BOND AND THINGS LIKE THAT TO SPEED UP THE USE OF THE FACILITY.
AND, AND JUST LOOKING AT THE NUMBERS, WE WENT FROM 123 EVENTS IN 22 OF PAID EVENTS AND NON-PROFIT ONES TO 134 THAT THE TREND LINE IS, IS IN A POSITIVE TRAJECTORY.
SO WE WANNA MAXIMIZE THE USE OF THE FACILITY, AND IF WE CAN HAVE ANYTHING THAT SPEEDS UP, UH, THE ABILITY TO USE IT, UH, THAT'S WHAT WE WOULD WANT TO ENCOURAGE.
AND IF WE HAVE TO DISCOURAGE, WE CAN'T FLAT OUT, IF SOMEBODY HAS A SPECIFIC VENDOR THAT THEY MUST USE, THEN PERHAPS THEY NEED TO BE ENCOURAGED TO GET ALL OF THOSE THINGS IN EARLIER AND FASTER.
BUT, UH, I WOULD DEFINITELY CONCUR THAT WE HAVE TO KEEP A, UH, THE APPROVED, UM, CATERER'S LIST.
I I THINK THAT'S SOMETHING THAT'S REALLY IMPORTANT FOR IT.
OTHERWISE, THEY, EVERYTHING'S GOING IN THE RIGHT DIRECTION, DOING A GREAT JOB.
ARE THERE ANY OTHER COMMENTS OR QUESTIONS FROM ANYONE IN THE ROOM? CHAIRMAN, IF I MAY, UM, I AGREE WITH EVERYTHING THAT MITCH, UH, MITCH MENTIONED EARLIER.
JUST WANTED TO MAKE SURE THAT THE AUDIT'S INTENT WAS TO EVALUATE THE DATA, COLLECT ADDITIONAL INFORMATION, AND BRING IT TO THE TABLE FOR THE POLICY MAKERS TO MAKE THAT DECISION.
AND, AND I BELIEVE THAT'S WHAT WE DID.
I JUST WANTED TO MAKE SURE, AND I DO WANNA, UH, EXPRESS MY APPRECIATION TO MY STAFF.
UH, SOMETIMES YOU HAD TO GO THREE, FOUR TIMES TO THESE EVENT FACILITIES
[00:55:01]
TO OBTAIN THE INFORMATION.SO AARON AND ZACH, THEY DID A GOOD JOB.
AND, AND AARON ACTUALLY CAME UP WITH A NEW WORD ITSELF.
ATTENTION
AND ZACH, YOU'RE FIRST, FIRST AUDIT, RIGHT? YES, SIR.
I MAY HAVE, SHOULD HAVE MADE MY COMMENTS BEFORE I
UH, I THINK THAT I WAS, UH, THE ONE WHO ACTUALLY, UH, BROUGHT THIS TO, UH, COMMITTEE AND MY THOUGHTS ON IT ARE DEFINITELY AGREE WITH ALL OF THE SUGGESTED RECOMMENDATIONS.
UH, THAT'S, IN FACT, YOU NOT ONLY MET MY EXPECTATIONS, BUT YOU, YOU'VE EXCEEDED IT IN THE WAY OF WHAT YOU DISCOVERED AND WHAT WE NEED TO DO IN ORDER TO, TO, TO FIX IT.
WE, WE KNEW WE HAD SOME CONCERNS THERE.
THAT'S ONE OF THE REASONS THAT, UH, AMY IS HERE NOW.
SHE'S HERE TO CORRECT THOSE CONCERNS THAT WE HAD.
AND, UH, HONESTLY, SHE HAS DONE AN AWESOME, AN AWESOME JOB OF DOING IT BECAUSE EVEN WITH THE POLICIES THAT WE'RE LOOKING AT PUTTING INTO PLACE, UH, IT STILL COMES DOWN TO THAT PERSON THAT'S AT THE HEAD.
SHE'LL BE THE ONE WHO HAS TO LOOK AT THE POLICIES EVEN AND MAKE WHATEVER EXCEPTIONS NEED TO BE MADE AND SO ON AND SO FORTH.
BUT LET ME EXPRESS TO YOU, UH, THE REASON THAT I ACTUALLY BROUGHT THIS, UH, TO YOUR ATTENTION, UH, BEING A CATERER, BEING ONE WHO HAS ACTUALLY CATERED THERE IN THE ATRIUM.
AND, UH, I DON'T KNOW IF THAT'S ONE OF THE CONFLICTS OF INTEREST THAT NEED TO BE DISCUSSED, BUT MAYBE THAT IS.
AND IF IT IS, THEN WE'RE GONNA BE IN HEADED IN THE RIGHT DIRECTION.
WHY THE, UH, SOMETHING THAT WE TALKED ABOUT A COUPLE OF WEEKS AGO WHEN WE TALKED ABOUT, UH, PROJECT BUILDERS, UH, MANAGERS BRINGING PROJECTS TO THE CITY.
I DON'T KNOW WHO IT WAS THAT DID THE PRESENTATION, BUT THEY DID AN OUTSTANDING JOB OF SAYING THAT WE WANT TO BE THAT CITY THAT IS USER FRIENDLY.
WE WANNA BE THAT CITY THAT WHEN PEOPLE BEGIN TO TALK ABOUT COMING HERE AND BUILDING, THEY DON'T HAVE TO JUMP THROUGH ALL THE RED TAPE AND THE HOOPS AND SO ON AND SO FORTH THAT, UH, OTHERS MAY HAVE TO, OTHER CITIES MIGHT IMPOSE UPON THEM.
THEY CAN COME HERE AND THEY'RE NOT GONNA HAVE TO SPIN A, AN ARM AND A LEG BEFORE THEY ACTUALLY GET THE PROJECT BEFORE, UH, THE, UH, THE PLANNING AND ZONING AND BEFORE THE, THE CITY AND SO ON AND SO FORTH.
WELL, I SEE THAT SAME THING AS IT RELATES TO OUR ATRIUM AND TO, UH, WHAT WE'RE DOING IN THE WAY OF, UH, UH, OUR CATERING AS IT RELATES TO, UH, THE DIFFERENT, UH, UH, EVENTS AND ACTIVITIES THAT WE HAVE THERE.
EVERYTHING THAT I'VE HEARD SO FAR HAS BEEN, WE'RE GONNA HAVE NO PROBLEM AT ALL IN CORRECTING IT.
BUT THERE WAS ONE ITEM THERE, AND IT RELATED TO THE CATERER WHERE WE ARE ACTUALLY CHARGING THE CATERER.
THE CATERER IS COMING AT THE REQUEST AT THE BEQUEST OF SOMEONE WHO HAS GOING TO HAVE AN EVENT HERE.
AND AS A RESULT OF THAT, WHEN WE BEGIN TO TALK ABOUT CHARGING THE CATERER, WHATEVER PROFIT THE CATERER WAS GOING TO MAKE, ALL OF A SUDDEN WE'RE TALKING 300, 400, $500 DETRACTED FROM THAT.
AND AS A RESULT OF THAT, IT HURTS A LOT OF CATERERS.
AND AS YOU CAN SEE IN MOST OF THE CITIES, HOW MANY OTHER CITIES CHARGE THE CATERER? WE DIDN'T FIND THERE AREN'T ANY.
THERE AREN'T ANY, THERE AREN'T ANY OTHER CITIES THAT CHARGE THE CATERER.
AND I'M THINKING THAT THAT MAY BE, NOW, WHEN I SAY THAT, I'M NOT SAYING WE NEED TO BE LIKE OTHER CITIES, EITHER.
WE'RE GARLAND AND THAT MAKES US VERY UNIQUE.
AT THE SAME TIME, I THINK WE WANNA BE COMPETITIVE.
I THINK WE WANNA BE THAT CITY ALSO, THAT PEOPLE CAN SAY THAT, HEY, WE'RE GOING OVER THE GARLAND.
AND THEY ARE VERY USER-FRIENDLY.
AND WHEN YOU BEGAN TO TALK ABOUT THE RATES OF 10% AND 15%, A LOT OF CATERERS ARE NOT GOING TO BE ABLE TO DEAL WITH THAT.
SO AS WE DEAL WITH LOOKING AT, AND AGAIN, THE RECOMMENDATIONS ARE APROPOS, THEY'RE APPROPRIATE, THEY'RE APPROPRIATE, WE NEED TO GO BACK AND WE NEED TO REST STUDY IT.
WE MAY NEED TO INCREASE IN SOME AREAS AND DECREASE IN SOME OTHER AREAS, BUT I THINK THAT WE REALLY DO WANT TO TAKE A LOOK AT WHAT WE'RE DOING TO THE CATERER, BECAUSE IN MOST INSTANCES, THESE PEOPLE ARE, THEY'RE, THEY'RE SMALL BUSINESS, A PRIVATE BUSINESS, SMALL BUSINESS TYPE PEOPLE.
AND TO TAKE ON THAT TYPE OF EXPENSE, I DO APPRECIATE, UH, FINDING OUT THAT THE $5, IF YOU'RE A CATERER OUTSIDE AND, UH, YOU'RE NOT ON THE CATERING LIST, NOT ONLY YOU'RE TALKING ABOUT 15%, YOU'RE ALSO TALKING ABOUT $5 PER PERSON.
THE EVENT THAT I DID WAS 400 PEOPLE
OKAY? AND SO I SAY THAT SO THAT AS WE ARE LOOKING AT IT, LET'S MAKE SURE THAT WE TAKE A LOOK AT THAT AREA ALSO, THAT, UH, WE ARE THAT USER-FRIENDLY COMMUNITY.
WITH THAT, UH, I GOT OFF MY SOAPBOX AND, UH,
[01:00:01]
JED, THANK YOU SO VERY MUCH FOR THANK YOU, AARON.ZACH, ZACH, THANK BOTH OF YOU FOR THE PRESENTATION.
ALRIGHT, THERE ARE NO OTHER QUESTIONS.
THE NEXT ITEM ON THE AGENDA CHAIRMAN, IT'S THE BOND PROGRAM AUDIT.
UH, I KNOW WE HAVE A FAIRLY NEW AUDIT COMMITTEE, SO I'M JUST GONNA, UM, UH, WHEN PATRICIA AND J WHEN THEY'RE SETTING UP, I'M JUST GONNA QUICKLY GIVE A, WHAT WE DID BACK IN 2021.
SO, AS I'M A FEMALE MEMBER, WE DID AN AUDIT IN 2021.
I DON'T THINK I NEED TO GO OVER THE BACKGROUND OF THE BOND PROGRAM ITSELF.
UM, SO WHEN WE DID THE AUDIT BACK THEN, UM, WE ISSUED THE REPORT TO THE AUDIT COMMITTEE EXACTLY TWO YEARS AGO IN DECEMBER IN 2021.
UM, THERE WERE SOME SIGNIFICANT DEFICIENCIES IN PROJECT MONITORING.
AS PART OF THE AUDIT, WE IDENTIFIED THAT, UM, DUPLICATE PAYMENTS WERE PROCESSED, OVERCHARGES ON LIABILITY INFERENCES WERE ASSESSED AND, AND PAID.
UM, INVOICES DID NOT HAVE ALL THE SUPPORTING DOCUMENTATIONS.
THERE WERE OVERTIME COSTS, UM, SALES TAXES WERE ASSESSED.
SO WE MADE SEVERAL RECOMMENDATIONS.
UH, I, I, I JUST WANTED THE COMMITTEE TO BE TO, TO KNOW THAT, UH, AS SOON AS WE MADE THAT RECOMMENDATIONS AND ISSUED THAT REPORT, UH, THE COMMITTEE REQUESTED, UH, AN UPDATE FROM THE, UM, MANAGEMENT TEAM.
UH, AND THE MANAGEMENT TEAM CAME, UM, THREE MONTHS LATER IN MARCH, 2022, AND PROVIDED, LOOKED AT THE OVERALL PROCESS AND MADE A SIGNIFICANT, UH, IMPROVEMENTS.
I DO REMEMBER AFTER THE AUDIT, UH, THE CITY MANAGER'S OFFICE INVITED US, UH, INCLUDING THE ATTORNEY'S OFFICE.
SO WE ALL SAT AROUND, UM, THE MAYOR'S CONFERENCE ROOM, WENT OVER THE PROCESSES, HOW WE CAME TO THE PROJECT MANAGEMENT OFFICE WAS INVOLVED.
UM, EVEN THE PROGRAM MANAGER, I BELIEVE, WAS INVOLVED.
WE ALL SAT TOGETHER AND DEVELOPED A PROCESS.
AND THANKS TO JARED AND HIS TEAM, UH, AND EVEN BRIAN BRADFORD WAS HERE BACK THEN FOR, UH, INITIATING THAT, UH, PROCESS IMPROVEMENT.
UH, I DO WANNA SAY, COMPARED TO WHAT WE FOUND IN 2021 TO TODAY, IT'S A DAY AND NIGHT DIFFERENCE.
UH, AND A LOT OF KUDOS SHOULD GO TO THE CITY ADMINISTRATION, CITY ATTORNEY'S OFFICE, PROJECT MANAGEMENT OFFICE.
I KNOW CRYSTAL WASN'T HERE BACK THEN.
SHE CAME ON BOARD AND, AND HER AND, AND LAURA WORKING TOGETHER.
WE WERE GONNA HEAR A LOT OF GOOD NEWS FROM, FROM THIS REPORT.
SO MAINLY THERE WERE THREE OBJECTIVES.
NUMBER ONE, WE WANTED TO MAKE SURE THAT THE PROJECT MANAGER MONITORING SINCE THEN HAS BEEN EFFECTIVE.
NUMBER TWO, WE WANTED TO SEE FOR ALL THOSE RECOMMENDATIONS THAT WE MADE BACK THEN WERE IMPLEMENTED.
PART THREE, WE ALSO KNOW THAT THERE IS A PROGRAM MANAGER EXEC, UM, PROFESSIONAL SERVICES AGREEMENT WITH AECOM.
WE WANTED TO MAKE SURE THAT THERE IS PROPER MONITORING IN PLACE, AND ALSO WE WERE AFFECT, YOU KNOW, WE, WE COMPENSATED THEM FOR THE WORK THAT THEY HAVE DONE.
SO THAT'S, THAT WAS THE PURPOSE OF THIS, THIS AUDIT.
AND LIKE I SAID, EXTREMELY HAPPY, UH, TO RESULT.
UH, YOU'LL, UH, HEAR FROM PATRICIA AND VIN.
UH, THEY'RE GONNA, THERE'S A LOT OF GOOD NEWS TO SHARE, THANKS TO JARED AND HIS TEAM.
AGAIN, PATRICIA MOSTLY, UM, LED THIS AUDIT.
JEV HELPED HER IN, IN A PIECE OF IT, SO THAT, I'M GONNA TURN THIS OVER TO THEM AND THEY'RE GONNA SHARE THE GOOD NEWS.
OKAY, SO AS, UH, JED POINTED OUT, UH, WE DID THE PREVIOUS AUDIT, DELIVERED THE REPORT A COUPLE OF YEARS AGO.
UM, BUT I WANT TO KIND OF GIVE A LITTLE BIT MORE BACKGROUND INFORMATION FOR THOSE OF US WHO WEREN'T HERE AT THAT TIME.
SO, THE CITY DID ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH A PROGRAM MANAGEMENT CONSULTING FIRM IN SEPTEMBER OF 2019 TO WORK WITH THE, THE, UH, OFFICE OF PROJECT MANAGEMENT.
THE CONTRACT IS $14 MILLION AGREEMENT THAT IS CURRENTLY SET TO EXPIRE IN SEPTEMBER OF 2024.
THE PROGRAM MANAGER ASSIGNS A PROJECT MANAGER TO OVERSEE EACH PROJECT DURING CONSTRUCTION AND PROVIDES ADMINISTRATION, PROGRAM MANAGEMENT, DESIGN AND ENGINEERING MANAGEMENT, AND PROJECT AND CONSTRUCTION MANAGEMENT SERVICES.
SO, FOLLOWING THE BID PRO PROCESS, THE PROJECTS ARE AWARDED TO CONSTRUCTION MANAGERS OR A GENERAL CONTRACTOR WHO COORDINATE AND OVERSEE THE CONSTRUCTION OF THE PROJECT.
ONCE A PROJECT WORK BEGINS, CONSTRUCTION MANAGERS SEND MONTHLY PAY APPLICATIONS TO THE PROJECT ARCHITECT, THE CITY AND THE PROGRAM MANAGER FOR REVIEW THE PAY APPLICATIONS, DETAIL SPECIFIC WORK PERFORMED AND COSTS INCURRED.
DURING THAT PERIOD, PAY APPLICATIONS SHOULD HAVE
[01:05:01]
SUFFICIENT DOCUMENTATION TO SUPPORT THE AMOUNTS BEING INVOICED.DURING THE ORIGINAL AUDIT, WE REVIEWED THE CONTRACTS AND PAY APPLICATIONS FOR THREE PROJECTS, ANIMAL SERVICES, POLICE, PROPERTY ROOM, AND AUDUBON RECREATION CENTER, ALL OF WHICH ARE NOW COMPLETE.
AT THAT TIME, INTERNAL AUDIT FOUND THAT PAY APPLICATIONS WERE PROCESSED WITHOUT OBTAINING AND REVIEWING SUFFICIENT SUPPORTING DOCUMENTATION TO DETERMINE BILLING, BILLING, COMPLIANCE AND ACCURACY.
ONE PROJECT HAD INVOICED THE CITY 8.2 MILLION AND HAD 3.25% DOCUMENTATION TO SUPPORT THE INVOICES.
ANOTHER PROJECT HAD INVOICED 4.3 MILLION AND PROVIDED ONLY 0.22% OF DOCUMENTATION.
AND THE THIRD PROJECT HAD INVOICED 4.1 MILLION AND PROVIDED 20% OF DOCUMENTATION TO SUPPORT THE INVOICES WHEN SUPPORTING DOCUMENTATION WAS PROVIDED.
DID NOT ALWAYS RECONCILE TO WHAT WAS BILLED, AND THERE WERE BILLING DUPLICATES AND OVERCHARGES, AS JED MENTIONED.
SO, TO SORT OF EXPLAIN THE, THE, THE RELATIONSHIPS, UM, BECAUSE SOME OF THE NAMES ARE A LITTLE BIT FAM, UH, SIMILAR, THE OFFICE OF PROJECT MANAGEMENT IS THE CITY DEPARTMENT THAT OVERSEES THE MANAGEMENT OF THE BOND PROGRAM.
JUST WANNA MAKE SURE IT WAS UP THERE.
UH, AND THE PROGRAM MANAGER, UH, IS THE CONSULTANT THAT THE CITY RETAINED TO COORDINATE PROJECT DETAILS.
THE PROGRAM MANAGER IS WHO HIRES THE PROJECT MANAGER, IT'S THEIR STAFF MEMBER.
AND THEN THE CONSTRUCTION MANAGER IS THE COMPANY THAT'S CONTRACTED TO DO THE ACTUAL CONSTRUCTION, UH, AT THE CONSTRUCTION SITE.
SO FOR THE PREVIOUS AUDIT, THE RECOMMENDATIONS, UM, THE MANAGEMENT RESPONSE AND THE ACTION PLANS, UH, ARE FROM THE PREVIOUS AUDIT.
SO I'LL JUST SORT OF HIGH LEVEL GO OVER THOSE AND MOSTLY TALK ABOUT WHAT'S ON THE FOLLOW UP.
SO, AS JED MENTIONED, UH, AFTER THE INITIAL AUDIT, OPM AND THE PROGRAM MANAGER CAME AND PROVIDED AN UPDATED REPORT IN MARCH OF 22, AND THEN ADDED SOME ADDITIONAL, UH, FEATURES THAT WERE UPDATED IN THE REPORT IN MAY OF 2022.
SO THEY GOT TOGETHER AND BEGAN REMEDYING THE ISSUES THAT WERE NOTED.
THE PRIMARY PUR PURPOSE FOR THIS AUDIT IS FOR US TO ENSURE THAT THE SIX RECOMMENDATIONS MADE AND MANAGEMENT'S ACTION PLANS HAD BEEN EFFECTIVELY IMPLEMENTED, AND THAT BOND PROGRAM OVERSIGHT IS FUNCTIONING AS INTENDED.
TO DO THIS, WE LOOKED AT THREE NEW PROJECTS, WHICH WAS DOWNTOWN SQUARE FIRE STATION SIX, AND HOLLOW BALL RECREATION CENTER.
THE PREVIOUS RECOMMENDATION WAS TO DEVELOP AND IMPLEMENT A PROCESS WITH CLEARLY DEFINED ROLES AND RESPONSIBILITIES, WHICH MANAGEMENT CONCURRED WITH.
THEY STATED AT THE TIME THAT ROLES AND RESPONSIBILITIES WOULD BE DEFINED.
AND UPON FOLLOW UP, UH, IA LEARNED THAT OPM HAD DEVELOPED A PROCESS WHICH OUTLINES ROLES AND RESPONSIBILITIES OF THE CONSTRUCTION MANAGERS, ARCHITECTS, ENGINEERS, PROGRAM MANAGER, PROJECT MANAGERS, AND THE OFFICE OF PROJECT MANAGEMENT.
THEY HAD ALSO DEVELOPED A PAY APPLICATION CHECKLIST OF RELEVANT DOCUMENTS THAT SHOULD BE RECEIVED WHEN REQUESTING PAYMENT AND A TRACKING SPREADSHEET FOR PROJECT MANAGERS TO COMMUNICATE WITH THE CONSTRUCTION MANAGERS FOR ANY ITEMS ON THE PAY APPLICATIONS.
THAT REQUIRED FURTHER DISCUSSION, AND WE'VE GOT SOME, UH, EXHIBITS ATTACHED FOR YOUR REVIEW.
SO I REVIEWED THESE FORM DOCUMENTS AND NOTED THAT THEY WERE ADEQUATE AND ALSO REVIEWED PROJECT TRACK LISTS, TRACKING SPREADSHEETS AND DOCUMENTATION FOR THOSE THREE PROJECTS.
MENTIONED AND VERIFIED THAT THIS IS WORKING AS INTENDED, AND WE CONSIDERED THAT RECOMMENDATION FULLY IMPLEMENTED.
THE SECOND RECOMMENDATION WAS TO CLEARLY COMMUNICATE IN WRITING THE CITY'S EXPECTATIONS OF ARCHITECTS, CONSTRUCTION MANAGERS, AND CONTRACTORS REGARDING THE SUPPORTING EVIDENCE.
MANAGEMENT CONCURRED AND STATED THAT THE REQUIREMENTS WOULD BE DEFINED AND COMMUNICATED DURING EACH PROJECT KICKOFF MEETING, PRE-CONSTRUCTION MEETINGS, AND MONTHLY OWNER ARCHITECT MEETINGS ON FOLLOW UP.
THE OFFICE OF PROJECT MANAGEMENT INDICATED THAT THEY HAD SENT OUT A MEMORANDUM ON MAY 19TH, 2022 TO THE PROGRAM MANAGER AND THE PROJECT TEAM'S OUTLINING THE CITY'S OPERATIONAL EXPECTATIONS FOR THE CONTENT REVIEW AND PROCESSING OF PAY APPLICATIONS.
ALSO, OPM WORKED WITH THE CITY ATTORNEY'S OFFICE TO REVISE THE EXISTING AND FUTURE CONTRACTS TO PROVIDE CLARIFICATION OF EXPECTATIONS, I REVIEWED THAT MEMORANDUM AND DETERMINED IT PROVIDED SUFFICIENT AND CLEAR EXPECTATIONS TO ALL THE INVOLVED PARTIES.
I ALSO REVIEWED THE CONTRACTS EXECUTED FOR THE THREE PROJECTS, AND DETERMINED THAT THE CITY ATTORNEY'S OFFICE HAS CLARIFIED THE CONTRACT LANGUAGE REGARDING SUPPORTING DOCUMENTATION.
THIS IS CONSIDERED FULLY IMPLEMENTED AS WELL.
[01:10:01]
RECOMMENDATION WAS TO OBTAIN AND REVIEW STATUTORY UNCONDITIONAL LIEN RELEASES FROM ALL SUBCONTRACTORS.DURING THE ORIGINAL AUDIT, THERE WERE A NUMBER OF LIEN RELEASES THAT WERE NOT RECEIVED.
MANAGEMENT CONCURRED AND STATED THAT UNCONDITIONAL LIEN RELEASES WOULD BE PROVIDED INCREMENTALLY THROUGHOUT THE PROJECT.
ON FOLLOW UP, WE REVIEWED THE DETAILED MEMORANDUM AGAIN, AND IT'S STATED, UNCONDITIONAL LIEN RELEASES SHALL BE PROVIDED INCREMENTALLY THROUGHOUT THE PROJECT AS WORK IS COMPLETED.
I ALSO OBTAINED UNCONDITIONAL, I'M SORRY, I ALSO NOTED THAT UNCONDITIONAL LIEN RELEASES WERE A LINE ITEM ADDED TO THE CHECKLIST.
I PERFORMED A DETAILED REVIEW OF THE PAY APPLICATIONS SUBMITTED FOR THE THREE PROJECTS, AND VERIFIED THAT THE LIEN RELEASES ARE BEING SECURED AND ANY DELAYS ARE BEING DOCUMENTED ON THE TRACKING SPREADSHEET.
SO THIS IS ALSO FULLY IMPLEMENTED.
THE FOURTH RECOMMENDATION WAS TO OBTAIN AND REVIEW CORRECT AND INDIRECT COSTS AS OUTLINED IN THE CONTRACT ON A MONTHLY BASIS BEFORE PAYMENTS ARE PROCESSED, MANAGEMENT CONCURRED AND STAFF TOOK ACTION TO CREATE THE COMPLIANCE PROCESS.
I DETERMINED THAT THE MEMORANDUM DISTRIBUTED BY OPM STATES THE JOB COST DETAIL TO BE PROVIDED WITH CONSTRUCTION MANAGER PAY APPLICATIONS SHALL PROVIDE TRANSACTION DETAILS SATISFACTORY FOR THE OWNER'S PROJECT MANAGER TO REVIEW CHARGES INCURRED DURING PERFORMANCE OF THE WORK.
IT FURTHER STATES THAT THE O OWNER'S PROJECT MANAGER WILL REVIEW THE JOB COST DETAIL REPORT, AND ON OCCASION REQUEST SUPPORTING DOCUMENTATION FOR CERTAIN TRANSACTIONS TO CONFIRM THE CHARGES ARE RELATED TO THE COST OF WORK ITEMS. FINALLY, THE CHECKLIST ALSO DEVELOPED BY OPM INCLUDED VERIFYING RECEIPT OF THE JOB COST DETAIL REPORT.
IN REVIEWING THE PAY APPLICATIONS, I HAVE VERIFIED THE JOB COST DETAIL REPORT IS INCLUDED AS SUPPORTING DOCUMENTATION AND VERIFIED THAT THE CHECKLIST AND TRACKING SPREADSHEETS ALONG WITH ANY QUESTIONS OR COMMENTS ARE BEING USED BY THE PROJECT MANAGERS AND THE CONSTRUCTION MANAGER.
HOWEVER, DURING THE REVIEW OF THE PAY APPS AND SUPPORTING DOCUMENTATIONS, I DID IDENTIFY A BILLING ERROR BY THE CONSTRUCTION MANAGER ON THE DOWNTOWN SQUARE PROJECT.
THE CONTRACT STATES THAT THE INSURANCE IS TO BE CALCULATED AT 0.007% OF THE PROJECT COST, WHICH WOULD'VE BEEN 163,194.
HOWEVER, THE CITY WAS OVERBILLED $14,333 AND SHOULD NOT HAVE BEEN INVOICED TO THE CITY BECAUSE THE CITY HAD HAD RETAINED $8,876 OF THAT PER THE CONTRACT.
THE REMAINING BALANCE THAT WAS BILLED 5,457 WOULD BE CREDITED BACK ON THE NEXT INVOICE CYCLE.
THIS HAS BEEN ADDED TO THE TRACKING SPREADSHEET TO ENSURE THE CORRECTION OCCURS AND THE RETAINAGE WILL BE ADJUSTED TO REFLECT $0, AND THIS IS CONSIDERED FULLY IMPLEMENTED.
THE NEXT RECOMMENDATION WAS TO VERIFY COMPLIANCE OF ALL TERMS AND CONDITIONS BEFORE APPROVING PAYMENTS, SUCH AS USAGE OF CITY PROVIDED SERVICES AND SALES TAX EXEMPTIONS.
SO THE CONTRACTS STATE THAT THEY USE CITY ELECTRIC CITY, UH, ENVIRONMENTAL WASTE SERVICES, THAT SORT OF THING.
SO MANAGEMENT CONCURRED AND STATED THAT THEY WOULD REVIEW ALL JOB COST DETAILS FOR APPROPRIATE USAGE OF CITY PROVIDED SERVICES.
ON FOLLOW UP O AS PREVIOUSLY STATED, OPM DEVELOPED A PROCESS WHEREIN THE JOB COST DETAIL REPORT IS PROVIDED AS SUPPORTING DOCUMENTATION OF JOB RELATED COSTS.
WE REVIEWED THE JOB COST DETAIL DETAIL REPORTS, WHICH SHOWED EXPENSES RELATED TO CITY PROVIDED SERVICES, AND VERIFIED THAT CONSTRUCTION MANAGERS ARE IN COMPLIANCE.
ADDITIONALLY, IT WAS EVIDENT DURING THE REVIEW THAT THE PROJECT MANAGERS ARE INQUIRING FURTHER WITH THE CONSTRUCTION MANAGERS ON EXPENSES APPEARING ON THE JOB COST DETAIL REPORT, WHICH INCLUDED SALES TAX RECEIPTS ARE BEING PROVIDED, AND INQUIRIES ARE RESOLVED AND DOCUMENTED, AND THIS IS FULLY IMPLEMENTED.
THE LAST RECOMMENDATION WAS TO ENSURE THAT THE OFFICE OF PROJECT MANAGEMENT COORDINATES EFFORTS AND COMMUNICATION WITH REGARD TO THE CONTRACTORS RETAINED AND UTILIZATION AND PAYMENT OF CITY PROVIDED SERVICES.
IN THE EVENT AN ENTITY IS DELINQUENT, WORK WITH THE CITY ATTORNEY'S OFFICE ON A SOLUTION UNTIL THE CITY COUNT IS CURRENT.
THAT STEMS FROM THE CONTRACTORS USING CITY SERVICES, BUT BEING DELINQUENT IN PAYING THE BILLS.
SO MANAGEMENT CONCURRED AND, UH, STATED THAT CUSTOMER SERVICE WAS IN THE PROCESS OF IMPLEMENTING NEW SOFTWARE, BUT AS SOON AS THAT WAS IMPLEMENTED, IT WOULD BE TRACKED BETTER.
SO ON FOLLOW UP, UH, OPM DID COORDINATE WITH THE CONS CUSTOMER SERVICE DEPARTMENT TO IMPLEMENT A PROCESS WHEREIN ACCOUNTS ARE
[01:15:01]
FLAGGED AS CITY PROJECTS.WHEN NEW CONSTRUCTION PROJECTS BEGAN WITH PROPER REPORTING, I VERIFIED THAT CUSTOMER SERVICE IS PROVIDING REPORTS TO OPM, WHICH SHOW ACCOUNT ACTIVITY FOR ACTIVATION PAYMENTS, DELINQUENCIES AND INACTIVATION.
THESE ARE PROVIDED ON A QUARTERLY BASIS, AND SO WE CONSIDER THIS TO BE FULLY IMPLEMENTED.
DOES ANYBODY HAVE ANY QUESTIONS FOR OBJECTIVES A AND B FOR ANY OF THIS? IT WAS ALL GOOD NEWS, GENTLEMEN, NOTHING.
OKAY, THEN I'LL TURN IT OVER TO VIN TO COVER OBJECTIVE C.
UH, OBJECTIVE C IS REGARDING PROGRAM MANAGEMENT SERVICES.
AS PREVIOUSLY NOTED, THE CITY ENTERED INTO PROFESSIONAL SERVICES AGREEMENT WITH THE PROGRAM MANAGER IN SEPTEMBER, 2019 TO PROVIDE ADMINISTRATION DESIGN AND ENGINEERING MANAGEMENT, PROGRAM MANAGEMENT AND PROJECT AND CONSTRUCTION MANAGEMENT SERVICE WITH DEDICATED STAFFING RESOURCES.
PROGRAM MANAGERS ALSO CONTRACTED TO DEVELOP MARKETING CAMPAIGNS AND COMMUNITY FACING WEBSITES TO PROVIDE UPDATES WITH STATUS OF ONGOING PROJECTS.
THEY ALSO HAVE AGREED TO PROVIDE A PLATFORM FOR PROJECT MANAGEMENT INFORMATION AND LICENSES TO THE CITY, UH, TO TRACK AND COORDINATE PROJECTS.
THE COST IS APPROXIMATELY $14 MILLION, AND THE AGREEMENT WILL EXPIRE IN SEPTEMBER, 2024.
UNLESS EXTENDED, I CAN DO, YEAH.
FOR THE CURRENT AUDIT, I HAVE PERFORMED AN OVERALL REVIEW OF THE TERMS AND CONDITIONS OF THE PROGRAM MANAGEMENT AGREEMENT, ONE AMENDMENT AND SEVERAL MODIFICATIONS MADE OVER THE PAST FOUR YEARS.
IN ADDITION, IA REVIEWED OPMS MONITORING OF THE PROGRAM MANAGER.
DURING THE INITIAL AUDIT, THERE APPEARED TO BE SOME CONFUSION OF, UH, AS TO OVERSIGHT ROLES, RESPONSIBILITIES, AND EXPECTATION.
UH, DURING THE CURRENT AUDIT NOTED THAT PROGRAM MANAGER PROVIDES WRITTEN BIWEEKLY PROGRESS REPORTS TO OPM DETAILING EACH PROJECT.
ADDITIONALLY, THERE ARE, THERE'S TIMELY COMMUNICATIONS REGARDING BOND PROJECTS THAT OCCUR WEEKLY, BIWEEKLY, MONTHLY, AND QUARTERLY.
FOR THE QUARTERLY PERFORMANCE REVIEWS, OPM MEETS WITH PROGRAM MANAGER AND DISCUSSES SEVERAL AREAS TO ENSURE EXPECTATIONS ARE BEING MET, SUCH AS PROGRESS, RESPONSIVENESS, TIMELY AND EFFICIENT PERFORMANCE, PROJECT SCOPE AND BUDGET, UM, AND COMMUNICATION.
THESE DISCUSSIONS INCLUDE OPPORTUNITIES FOR IMPROVEMENT AND ARE WELL DOCUMENTED BY OPM AND ACKNOWLEDGED BY THE PROJECT MANAGER IA VERIFIED THAT OPM IS APPROPRIATELY MONITORING AND ENSURING PROGRAM MANAGERS COMPLIANCE TO AGREEMENT TERMS AND CONDITIONS.
WITH REGARD TO COMMUNITY INFORMATION, IN THE LOBBY AREA OF THE CITY HALL, THERE'S A LARGE DISPLAY FOR THE PUBLIC TO OBTAIN INFORMATION ON PRO ON PROPOSITIONS A THROUGH H.
THE PROGRAM MANAGER ALSO DEVELOPED THE WEBSITE, BILL GARLAND.COM IN ACCORDANCE WITH TERMS AND CONDITIONS.
IA REVIEWED EACH OF THE PROPOSITIONS AS WELL AS MANY PROJECTS AT VARIOUS STAGES OF DESIGN CONSTRUCTIONS AND COMPLETION.
OPM DID EXPLAIN THAT DUE TO THE NUMBER AND COMPLEXITY OF THE PROJECTS, IT'S NOT FEASIBLE TO PROVIDE UPDATES IN REAL TIME.
GENERALLY, IT APPEARS THAT PROGRAM MANAGER IS KEEPING THE COMMUNITY INFORMED TIMELY AND ACCURATELY IN ACCORDANCE WITH THE AGREEMENT.
UM, PROJECT MANAGEMENT INFORMATION PLATFORM IS PROVIDED BY THE PROGRAM MANAGER TO FACILITATE TRACKING PROJECT PROGRESS, BUDGET COST, AND DOCUMENT RETENTION.
UM, IA VERIFIED THE PROGRAM MANAGER PROVIDES APPROXIMATELY 50 SOFTWARE LICENSE TO THE CITY COMPENSATION.
I REVIEWED THE TIMELINESS OF INVOICING AND PAYMENT.
OVERALL, THE INVOICES AND PAYMENTS WERE PROCESSED IN A TIMELY MANNER THROUGH SEPTEMBER, 2023.
UH, THE CITY HAS RECEIVED 45 INVOICES.
THE PROGRAM MANAGER HAS BEEN TIMELY PAID, RECEIVING A TOTAL OF $10,865,492.
THIS REPRESENTS 78% OF THE CONTRACTUAL AMOUNT.
DOES ANYONE HAVE ANY QUESTIONS? I'LL HOLD.
I'LL, I'LL HOLD UNTIL YOU FINISH.
YOU DON'T HAVE A QUESTION? NOT YET.
LEMME ASK YOU IF YOU HAD ANY QUESTIONS.
[01:20:01]
YOU WERE GETTING READY TO SCORE, SODID THIS INCLUDE, IT'S BEEN A WHILE AND MR. CITY MANAGER HELPED ME WITH THIS.
WE THE, 'CAUSE WE'VE HAD A LOT OF DISCUSSION ON THIS, DID WE LOOK AT CHANGE ORDERS AND THE IMPACT OF CHANGE ORDERS IN THE SCOPE OF THIS JUDGE? OH, IS THAT SOMETHING WE'RE SUPPOSED TO HELP ME, JUDD? WELL, IN THE LAST AUDIT WE DID OKAY.
IN THIS AUDIT, OUR MAIN FOCUS WAS TO SEE IF THE PROGRAM MANAGEMENT OFFICE WAS, HOW, HOW THEY WERE MONITORED.
OH, THEY WERE FUNCTIONING, YEAH.
AND SO WE DID SAMPLE A FEW, UH, BUT IT WAS NOT A THOROUGH, UM, FROM A TO Z TYPE OF AUDIT THAT WE DID LAST TIME.
BUT THE CHANGE ORDER PROCESS WAS DIDN'T LAST TIME WAS ONE OF THE OTHER AUDITS THAT WE DID.
I KNEW WE HAD, I JUST DIDN'T RE DIDN'T REMEMBER WHEN.
UM, BASED ON THIS FOR THE, ARE YOUR THOUGHTS, ARE YOU, ARE YOU WITH WHERE WE ARE AND WHERE WE'VE COME FROM, UH, AND WHERE WE ARE NOW? YOUR THOUGHTS, PLEASE, SIR? YEAH, OVERALL, WE'LL FEEL REALLY GOOD ABOUT WHERE WE'RE AT.
UM, THE, THE AUDIT THAT WAS DONE BACK IN 22, I THINK, UM, DISCOVERED SOME THINGS, SOME BETTER, SOME OPPORTUNITIES FOR IMPROVEMENT.
AND, UH, THE TEAM WENT TO WORK AND, AND CLEARED THINGS UP PRETTY QUICK.
UM, YOU KNOW, OUT OF THE, OUT OF THE 2019 BOND PROGRAM OF WHAT IS THE TOTAL 54 PROJECTS, THERE'S 50 PLUS PROJECTS.
AND SO, UM, WE LEARNED A LOT FROM THAT FIRST AUDIT AND, AND JUST WENT TO WORK AND, AND PUT EVERYTHING IN ORDER THAT, THAT NEEDED TO BE THERE.
SO, UM, APPRECIATE JED AND HIS TEAM, UH, TAKING A SECOND LOOK.
KEEP US ON TRACK, BUT NO, I, OVERALL, I FEEL GOOD ABOUT WHERE WE'RE AT RIGHT NOW.
ANY OTHER QUESTIONS? A FEW COMMENTS ON IT.
I, I THINK THIS IS EXCELLENT TIMING BECAUSE WE'RE CONSIDERING HAVING ANOTHER BOND ELECTION, AND IF WE DO SOMETHING LIKE THAT, WE CAN PROVE THAT THE CITY HAS, HAS REALLY GOOD STEWARDSHIP OF THE FUNDS AND THE TIMING OF EVERYTHING.
SO I REALLY APPRECIATE ALL YOUR HARD WORK ON THE, UH, ON THE AUDIT OF THIS AND JUST OF STAFF OF THE, THIS HAS BEEN AN ENORMOUS AMOUNT OF PROJECTS AND TO BE ABLE TO, UH, TO BE ABLE TO KEEP ACCOUNTABILITY ON THIS, SO, WELL, IT'S, UH, IT'S IMPRESSIVE.
AND IF I MAY SAY WE HAD THE EASY PART, I THINK IT WAS THE OFFICE OF PROJECT MANAGEMENT THAT I HAD THE HARD PART, SO, UH, I WOULD AGREE.
WELL, I THINK THAT THE OFFICE OF PROJECT MANAGEMENT HAS INDEED DONE AN AWESOME JOB OF CORRECTING OF WHAT I, I HEARD IN THIS REPORT MANY MISTAKES, UH, FINANCES AND JUST, JUST MY QUESTION NOW BE IS, UH, ARE WE GOING TO EXTEND THE CONTRACT? ARE WE GOING TO, UH, UH, AT THE END OF THE PERIOD OR ARE WE GOING TO LOOK, UH, FOR, UH, FOR THREE ADDITIONAL BIDS WHEN THIS IS ALL OVER WITH? UH, WHAT ARE YOU THINKING AT THIS POINT? YEAH, AND CRYSTAL CAN PROBABLY ANSWER THAT BETTER, BUT, UH, SHORTER ANSWER IS SHORT ANSWER IS WE'RE LOOKING AT THAT.
WE DON'T HAVE A DECISION ON THAT JUST YET.
BECAUSE I, I THINK THAT, UH, YOU KNOW, WE, ON OUR HAND, WE'VE DONE A GREAT JOB OF CORRECTING THE PROBLEMS AND SO ON AND SO FORTH, BUT, YOU KNOW, THEY, THEY PAID INSURANCE WHEN THAT SHOULD NOT HAVE BEEN PAID.
THEY, THEY LOST MONEY WHERE, OR NOT REPORTING WHEN THEY SHOULD HAVE BEEN REPORTING.
I MEAN, IT'S, IT JUST SEEMED THAT THERE WERE A LOT OF SITUATIONS THERE THAT HAD TO BE CORRECTED.
AND NOW THAT THEY HAVE BEEN CORRECTED, THANK GOD FOR THAT.
BUT THE PROBLEM THEN BECOMES, UH, ARE WE GOING TO EXTEND THIS CONTRACT OR ARE WE GOING TO, UH, FIND OUT IF SOMEONE CAN DO A BETTER JOB WITH US? SO, UH, THAT'S THE QUESTION THAT I HAVE.
UH, AND TO ADD A LITTLE BIT MORE TO THAT, SO THE, THE NEED FOR PROJECT MANAGEMENT IS NOT GONNA GO AWAY, UH, EVEN JUST ON THE 2019 BOND PROGRAM, BUT IN GENERAL.
SO ALL THOSE 50 PLUS BOND PROJECTS ARE NOT GONNA BE FINISHED BY SEPTEMBER OF NEXT YEAR.
SO, I MEAN, IF I HAD TO SAY RIGHT NOW, WE'RE LIKELY GONNA STILL NEED SOME ASSISTANCE ON THE PROJECT MANAGEMENT SIDE.
I JUST DON'T KNOW WHAT THAT'S GONNA LOOK LIKE.
IT'LL, AT, AT A, AT A MINIMUM IT'S DEFINITELY GONNA MEAN A, A PAIRED DOWN VERSION OF WHAT WE GOT.
BUT, UH, AGAIN, THAT'S A LOT OF DETAILS THAT WE HAVE TO WORK THROUGH BETWEEN NOW AND, AND NEXT SUMMER.
WE ARE, WE ARE ACTIVELY WORKING ON A TRANSITION PLAN.
[01:25:01]
DON'T KNOW WHAT LEVEL OF SUPPORT WE'RE GONNA REQUIRE TO KEEP THE PROJECTS MOVING FORWARD, BUT WE ARE, UM, WORKING ON A TRANSITION PLAN, UM, FOR BETWEEN NOW AND SEPTEMBER OF NEXT YEAR.IF THERE ARE NO OTHER QUESTIONS OR YES, SIR.
UH, OFFICE OF PROJECT MANAGEMENT OFFICE, I JUST DON'T KNOW.
I HEARD THE O-P-M-O-P-M MAYBE PROJECT, I'M JUST GONNA SAY PROJECT MANAGEMENT OFFICE, RIGHT.
UH, THEY HAVE DONE AN EXCELLENT JOB, UM, SINCE WE DID IT.
AND I ALSO WANNA APPRECIATE MY AUDITORS HERE.
IN FACT, PATRICIA, UM, SHE WORKED ON THE FIRST AUDIT.
SHE WORKED ON THE SECOND AUDIT, UM, WORKING THROUGH THE SYSTEM, GO, GOING OVER, IT'S A LOT OF WORK.
UM, SO THERE WAS A LOT OF HARD WORK DONE.
KUDOS TO HER AND VIN, UM, HE'S FAIRLY NEW, BUT HE JUMPED IN TO HELP WHATEVER HE COULD.
SO I JUST WANTED TO APPRECIATE THEM AS WELL.
WELL, YEAH, I, I AGREE TOTALLY.
YOU KNOW, KNOW, IT'S, IT'S, IT'S TOUGH MAKING SOMEBODY DO WHAT THEY SUPPOSED TO HAVE DONE ANYWAY,
UH, WITH THAT, UH, MR. CHAIRMAN, I, I'D JUST LIKE TO APPLAUD AGAIN, UH, CITY MANAGER AND HIS PREDECESSOR.
'CAUSE THEY WERE ALL, THEY WERE IN THIS THING TOGETHER TOO.
AND, AND JUDD AND HIS, HIS TEAM AND I REFLECT ON WHERE WE WERE AND WHERE WE, WHERE WE'VE COME FROM.
AND I THINK AS, UH, AS, AS, UH, CITY MANAGER AND HIS TEAM EVALUATES WHAT CHANGES NEED TO BE MADE, I THINK TIMING IS GONNA BE VERY IMPORTANT.
UM, YOU KNOW, YOU, YOU, YOU'VE GOTTA CONSIDER SOME THINGS, UH, YOU KNOW, YOU DON'T WANNA SWITCH, SWITCH THE TRAIN, SWITCH TO ANOTHER TRAIN TRACK.
IF IT'S GONNA DO YOU MORE DAMAGE, THEN IT'S GOOD.
SO, UH, I THINK AS, AS WE LOOK AT THAT, WE LOOK, THE TIMING IS GONNA BE CRITICAL AND THE SCOPE OF WHAT WE NEED AT THAT TIME IS GONNA BE CRITICAL.
SO, UM, I'M NOT, UH, I HAVE A DIFFERENT PERSPECTIVE THAN I DID A YEAR AND A HALF AGO.
AND, UH, BUT WHAT, WITH, WHAT HAS BEEN ACHIEVED.
SO I'M, I'M VERY CURIOUS ABOUT WHAT, WHAT'S THE NEXT SIX MONTHS, THE NEXT SIX TO NINE MONTHS GONNA LOOK LIKE.
AND I THINK THAT'S GOING TO ENTER INTO A BIG WAY WITH OUR CITY MANAGER'S DECISION AS TO WHAT HIS RECOMMENDATION IS GONNA BE AS FAR AS MOVING FORWARD.
BUT, BUT, UH, I WANNA KEEP IT IN MIND, YOU KNOW, I REMEMBER WHERE WE WERE AND WE ARE NOT WHERE WE WERE TODAY, WHERE WE WERE THEN.
SO I'M NOT READY TO PULL THE TRIGGER ON THEM JUST YET.
I WANNA WAIT AND SEE WHAT THE NEXT SIX MONTHS, WHAT IT'S GOING TO LEAD TO.
THANKS FOR THE EARLY CHRISTMAS PRESENT.
AND WITH THAT, UH, LET'S MAKE SURE WE DO TAKE A LOOK AT, UH, THERE MAY BE SOMEONE THAT CAN DO A BETTER JOB OF DOING THIS.
MERRY CHRISTMAS TO ALL OF YOU.
MATTER OF FACT, UH, THIS IS OUR LAST CASE, ISN'T IT? EXECUTIVE SESSION.
WE HAVE EXECUTIVE SESSION, BUT THESE PEOPLE ARE GETTING READY TO LEAVE.
LET ME SAY BEFORE YOU LEAVE, PLEASE, MERRY CHRISTMAS TO YOU.
ONE OF THE THINGS THAT, UH, HAPPENS HERE AT THE CITY AND ALL THE JOBS SOMEONE TOLD ME WHEN I FIRST CAME INTO THIS BUSINESS, THAT, UH, THIS JOB WILL TAKE AS MUCH TIME AS YOU GIVE IT.
I PRAY THAT DURING THIS NEXT TWO WEEKS THAT YOU'LL GIVE SOME TIME TO YOUR FAMILY, THAT YOU'LL GIVE SOME TIME TO YOURSELVES, THAT YOU'LL COME BACK REFRESHED, REPLENISHED.
MERRY CHRISTMAS TO ALL OF YOU.