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[ NOTICE OF MEETING CITY OF GARLAND, TEXAS Committee Work Session Room of City Hall William E. Dollar Municipal Building 200 N. Fifth Street Garland, Texas DECEMBER 17, 2024 2:00 PM]
GET STARTED.I'M SHOWING 2:00 PM I'D LIKE TO SAY GOOD EVENING TO EVERYONE AND WELCOME TO THE AUDIT COMMITTEE OF CITY OF GARLAND'S, FINAL MEETING OF THE YEAR.
OUR COMMITTEE MEMBERS ARE HERE WITH US THIS EVENING.
UH, WE HAVE CHRIS OTT AND VJ WILLIAMS, AND WE HAVE A CADRE OF OUTSTANDING
SO, WE'D LIKE TO WELCOME YOU TO OUR MEETING AND THE FIRST ORDER OF BUSINESS THIS EVENING WILL OF COURSE BE OF THE APPROVAL OF OUR JUNE 26TH, 2024 MINUTES.
COUNSEL, UH, MEMBERS, HAVE YOU HAD OPPORTUNITY TO REVIEW THE MINUTES? YES, SIR.
I'LL ACCEPT THAT THE ONLY ONES AT THIS POINT CAN APPROVE THAT ARE GONNA BE YOU AND MYSELF.
WELL, I'D LIKE TO MAKE A MOTION THAT WE, UH, THAT WE ACCEPT THE MINUTES AS PRESENTED.
I SECOND THAT MOTION AND THE MINUTES ARE APPROVED.
THE NEXT ORDER OF BUSINESS IS THE PUBLIC COMMENTS.
AND, UH, TO MY KNOWLEDGE, WE DON'T HAVE ANY PUBLIC COMMENTS THIS EVENING.
SO LET'S MOVE RIGHT NOW, RIGHT INTO OUR ITEMS FOR INDIVIDUAL CONSIDERATION.
AND WE'LL NOW TURN OUR MEETING OVER TO OUR AUDIT DIRECTOR, JUDGE JOHNSON.
GOOD AFTERNOON, COMMITTEE MEMBERS MANAGEMENT.
THANK YOU FOR GIVING US THIS OPPORTUNITY TO GO OVER SOME OF THESE REPORTS WITH YOU.
UM, AS THE CHAIRMAN INDICATED, THE FIRST ITEM THAT WE WANTED TO COVER IS THE PARKING ENFORCEMENT PROGRAM AUDIT.
JUST TO GIVE YOU, UH, A LITTLE BACKGROUND ABOUT THIS AUDIT.
THIS AUDIT WAS REQUESTED BY COUNCILMAN SMITH AS HE WAS IN COUNCIL.
AND SO I DO WANNA APPRECIATE HIM FOR REQUESTING, UH, THIS AUDIT.
ALSO WANNA, UH, INFORM THE COMMITTEE THAT, UH, MIKE BETS ALSO, AS HE WAS THE CITY MARSHAL, REQUESTED THIS AUDIT.
SO DID GET TWO REQUESTS, UH, FROM CITY COUNCIL AS WELL AS FROM, FROM MANAGEMENT AT THAT TIME.
UH, I DO WANNA APPRECIATE OUR MARSHAL'S OFFICE, AS YOU'RE AWARE.
UM, PRIOR TO THAT, WE DID NOT HAVE THIS PROGRAM IN PLACE.
SO MIKE TOOK THE INITIATIVE TO IMPLEMENT THIS PROGRAM, OBVIOUSLY UPON COUNCIL'S DIRECTION.
UM, HE ACTUALLY CREATED THIS PROGRAM FROM NOTHING.
SO THERE WAS A LOT OF EFFORTS MADE, AND I WANNA THANK HIM MAINLY BECAUSE AS PART OF IMPLEMENTING THIS PROGRAM, HE ACTUALLY INCORPORATED INTERNAL AUDIT.
UM, HE, HE, HE, HE ASKED US FOR INTERNAL CONTROL, UM, ADVICES.
AND WE TALKED ABOUT CONDUCTING THE THIRD PARTY, UH, THAT WE HIRED, CONDUCTING SOC TWO AUDITS PERIODICALLY, AND THE IMPORTANCE OF THAT, UH, SEGREGATING DUTIES BETWEEN THE MARSHALL'S OFFICE AS WELL AS WE TAKING PAYMENTS.
SO WE, WE, WE'VE, WE TALKED ABOUT A LOT OF THOSE INTERNAL CONTROL DETAILS BACK THEN.
SO I REALLY DO WANNA APPRECIATE HIM, UM, FOR INCORPORATING SOME OF OUR ADVICES, UH, AS PART OF THE AUDIT.
ALSO WANNA, UH, APPRECIATE THE CURRENT MARSHALS.
SEAN, UH, SINCE WE STARTED THE AUDIT, UH, SEAN HAS BEEN, UM, EXCELLENT.
UH, EVERY, ANY TIME WE BROUGHT IN ANY KIND OF QUESTIONS OR ISSUES TO HIM, HE WAS, HE, HE WAS VERY HONEST AND HE IMPLEMENTED A LOT OF THESE THINGS THAT YOU WILL HEAR AS, AS THE AUDIT WAS PROGRESSING.
SO I REALLY DO WANT TO APPRECIATE THAT.
IT'S USUALLY, UM, UH, YOU KNOW, THAT'S NOT THE CASE ALL THE TIME, BUT HE WAS, HE WAS EXTREMELY COOPERATIVE AND WORKED GREATLY WITH US WITH THAT.
UH, AS YOU'RE AWARE, THE PROGRAM WAS IMPLEMENTED IN 2020, AND AS PART OF THE PROGRAM, WE ACTUALLY ENTERED INTO A CONTRACT WITH A THIRD PARTY, UH, SOFTWARE VENDOR, UH, TO IMPLEMENT THIS PROGRAM.
THEN LATER IN 2023, WE EXTENDED, UH, AN AGREEMENT WITH THE COLLECTION AGENCY TO ENFORCE SOME OTHER COLLECTION EFFORTS FOR THIS AUDIT.
THE FIRST ONE WAS TO DETERMINE IF SERVICES PROVIDED BILLING AND PAYMENTS PROCESS BY THE SOFTWARE VENDOR AND COLLECTION AGENCY ARE IN COMPLIANCE WITH CONTRACT TERMS AND CONDITIONS AS WELL AS THE CITY ORDINANCES.
SECONDLY, WE ALSO WANTED TO EVALUATE THE EFFECTIVENESS OF PROGRAM ADMINISTRATION FROM SCOPE PERSPECTIVE, WE WENT, WENT, WENT BACK ALL THE WAY TO JANUARY, 2020, UP UNTIL SEPTEMBER 30TH, 2024.
SO PRETTY MUCH LOOKED AT ALL THE DATA FROM THE ENTIRE TIMEFRAME.
UM, DURING THIS TIME, I KNOW ERIN IS GONNA GO OVER THE DETAILS, BUT HIGH LEVEL, UM, THE PROGRAM WAS EFFECTIVE
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SINCE WE IMPLEMENTED IT.AND JUST TO SHOW THAT THEY ACTUALLY, UH, WRITTEN ABOUT 51,390 CITATIONS DURING THIS TIME.
THAT IS ABOUT 900 CITATIONS PER MONTH.
AND, UM, AND ALSO OVER 500 OF THOSE GOT PAID.
THAT SHOWS THE EFFECTIVENESS OF THIS PROGRAM.
OBVIOUSLY, THIS PROGRAM IS NOT A REVENUE GENERATED INTENDED PROGRAM.
IT'S MORE OF A, A COMPLIANCE, ENSURING THAT OUR PEOPLE ARE COMPLYING WITH OUR PARKING, PARKING RULES AND REGULATIONS.
UM, SHE, SHE DID A GREAT JOB AND ZACH, ON THE OTHER HAND DID A LOT OF ANALYTICS AS PART OF THIS AUDIT, AND IT WAS A TEAM EFFORT.
AND VIN ALSO ASSISTED IN COMING UP WITH SOME OF THE GRAPHICS.
SO AT THIS POINT, I'M GONNA TURN THIS OVER TO ERIN.
SHE'S GONNA COVER, KIND OF GO OVER SOME OF HOW THIS PROGRAM WORKS AND, AND SOME OF THE DATAS AND SOME HOW MUCH FEES THAT WE ARE ASSESSING.
SO KIND OF GIVE YOU AN OVERALL PICTURE OF THIS PROGRAM AND THE PROCESS ITSELF.
AND AFTER THAT, ZACH WILL COME AND START WITH THE FINDINGS AND OBSERVATIONS.
ALRIGHT, SO THIS IS JUST A BROAD OVERVIEW.
UM, STARTING FROM THE LEFT, UH, THE PUBLIC CAN SUBMIT PARKING COMPLAINTS A FEW DIFFERENT WAYS THROUGH THE EIST WEBSITE, BY PHONE, UH, BY EMAIL, BOTH OF WHICH ARE ON THE NEIGHBORHOOD ENFORCEMENT WEBSITE, UM, AND ALSO IN PERSON AT THE MARSHALL'S OFFICE.
UM, ALL THE DEPUTIES, WHEN THEY GET A COMPLAINT, THEY PUT IT INTO EIST, WHETHER IT WAS RECEIVED, UH, DESPITE THE METHOD.
UM, JUST SO THEY CAN TRACK ALL OF THOSE COMPLAINTS THAT ARE COMING IN.
AND THEY KEEP UP THE STATUS AND THE RESPONSES IN EIST.
UM, THEY GO AND INVESTIGATE THE VIOLATION.
IF IT IS A VIOLATION, THEY'LL TAKE PICTURES, ISSUE A CITATION USING A CITATION WRITING DEVICE, LEAVE IT ON THE WINDSHIELD.
UM, A CITATION NORMALLY HAS ALL THE INFORMATION THAT A VIOLATOR NEEDS TO KNOW TO RESOLVE THAT.
SO THEY'LL HAVE A SCHEDULED, UM, ADMINISTRA, UH, ADMINISTRATIVE HEARING DATE WITH THE HEARING OFFICER.
UM, AND IT'LL HAVE THE DIFFERENT METHODS THAT THEY CAN PAY THEIR CITATION.
SO, UH, THEY CAN PAY IN PERSON AT THE CUSTOMER SERVICE BUILDING THE TAX COUNTER.
UM, THEY CAN ALSO PAY ONLINE BY PHONE.
AND THEN SOME PEOPLE HAVE PAID BY MAIL OR THROUGH THE OVERNIGHT DROPBOX.
IF THEY WOULD LIKE TO DISPUTE IT, THEY CAN ATTEND THEIR ADMINISTRATIVE HEARING, UM, ON OR BEFORE THE SCHEDULED DATE.
THAT'S ON THE CITATION TICKET.
UM, IF, UH, IT'S DISMISSED, THEN THEY HAVE NO, NO OTHER ACTIONS.
BUT, UM, IF THEY'RE FOUND LIABLE BY THE HEARING OFFICER, THEN THEY'LL HAVE TO PAY THE CITATION BEFORE, I THINK IT'S THE 65TH DAY, UH, BEFORE THERE'S A LATE FEE APPLIED AND POSSIBLY COLLECTION FEE.
AND THEN IF IT'S EXCESSIVELY DELINQUENT, IT ENDS UP GOING TO COLLECTIONS.
COULD YOU GO TO THE BACKGROUND? SO THAT'S A BROAD OVERVIEW.
UM, LIKE JED SAID, THE PROGRAM STARTED IN JANUARY OF 2020.
UM, THERE'S A FEW PARTIES INVOLVED, SO IT'S MANAGED BY THE MARSHAL'S OFFICE.
UM, UNDER THE CITY ATTORNEY'S OFFICE, THE CUSTOMER SERVICE DEPARTMENT TAKES THE IN-PERSON PAYMENTS.
UM, THE HEARING OFFICER IS APPOINTED BY THE MUNICIPAL COURT JUDGE, AND THE MUNICIPAL COURT'S REALLY ONLY INVOLVED IF SOMEONE WANTS TO APPEAL THE HEARING OFFICER'S DECISION.
AND THEN THERE'S TWO VENDORS INVOLVED.
THE PRIMARY IS THE CITATION SYSTEM VENDOR, AND THEN THE COLLECTION AGENCY.
THE CITATION SYSTEM VENDOR PROVIDES, UM, THE HARDWARE.
SO ALL THE TICKET WRITING DEVICES, THEY SEND OUT, UM, AUTOMATED NOTIFICATIONS, UM, DURING A CITATION LIFECYCLE.
THEY HAVE, UM, A PAYMENT PORTAL.
THEY HAVE AN OVER THE PHONE PORTAL.
THEY PROVIDE, UM, SOFTWARE AND DEVICE SUPPORT AS WELL.
UH, HERE'S A GRAPHIC OF JUST A TIMELINE, UM, FOR A CITATION ISSUANCE.
SO, DAY ZERO CITATIONS ISSUED WITHIN SEVEN DAYS.
UM, THE VIOLATOR SHOULD BE RECEIVING IN THE MAIL A NOTIFICATION OF THE CITATION IF IT'S NOT PAID YET.
UM, DAY 30 IS REALLY JUST FOR LEASED VEHICLES.
UM, THE 30 TO 60 DAY WINDOW IS THE TIME IN WHICH A HEARING SHOULD BE SCHEDULED WHEN THE CITATION'S ISSUED.
UM, AGAIN, IF YOU DROP DOWN AND YOU SEE THE HEARING BOX AND THE MUNICIPAL COURT BOX, THOSE ARE JUST DAYS TILL WHICH THEY HAVE TO PAY THEIR PENALTIES BEFORE IT'S LATE, AFTER THE HEARING IS DETERMINED.
UM, IF THEY'RE DETERMINED LIABLE, AFTER 65 DAYS, A LATE FEE, A COLLECTION FEE CAN BE APPLIED.
AND THEN AT THE BOTTOM YOU'LL SEE AN EXPEDITED HEARING.
THAT'S JUST FOR IMPOUNDMENT AND MOBILIZATION.
SO HERE ARE THE LIST OF PENALTIES AND FEES.
THE FIRST OFFENSE STARTS AT $25 AND IT GOES UP TO $75.
AND FOR OVERSIZED VEHICLES, IT'S $75 TO ONE 50, A LATE FEES, $25.
AND THEN CURRENTLY, UM, THE COLLECTION FEE THAT'S BEING PAID IS 30% OF THE TOTAL FEES COLLECTED, UM, FOR
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THE PRIMARY SYSTEM VENDOR.UM, THE CONTRACT AND THE SERVICE FEE IS $3 PER CITATION ISSUED, UM, WITH A MINIMUM SERVICE FEE OF 35 OR $37,000.
UM, WE ALSO PAY FOR A POSTAGE FOR THE NOTIFICATIONS THEY SEND OUT, UM, AND THEN THE CITATION WRITING PAPER, UM, AS WELL AS SOME WARRANTIES FOR THE DEVICES.
AND WITH THAT, WE'LL START WITH THE FIRST FINDING.
SO LIKE ERIN SAID, WE'RE GONNA JUMP INTO THE OPPORTUNITIES FOR IMPROVEMENT.
UH, SO THE FIRST AREA THAT WE'RE GONNA TAKE A LOOK AT IS THE ENFORCEMENT STRATEGY.
UM, AND THERE'LL BE QUITE A BIT OF INFORMATION.
IT IS GONNA BASICALLY JUST LAY OUT SOME OF THE DATA FROM THE, THE WHOLE OF THE, UH, PROGRAM, UH, BEFORE WE GET INTO SOME OF THE DETAILS.
UH, SO DURING THE SCOPE OF THE AUDIT, A TOTAL OF 51,390 CITATIONS, UH, VALUED AT APPROXIMATELY 2.1 MILLION HAD BEEN ISSUED BY THE CITY MARSHAL'S OFFICE DEPUTIES.
SO, REAL QUICK, WE'RE GONNA TAKE A LOOK AT THAT.
BROKEN OUT BY COUNCIL DISTRICT.
UH, THIS IS JUST A PERCENTAGE OF CITATIONS WRITTEN, UH, BY COUNCIL DISTRICT, AND THAT'LL BE IN EXHIBIT, UH, B OF YOUR REPORT.
AND THEN IN ADDITION, WE HAVE IT BROKEN OUT BY YEAR, AND THE COLORS DICTATE WHICH COUNCIL DISTRICT IT IS, AND THAT'S ALSO IN EXHIBIT B IN YOUR REPORT.
ALRIGHT, SO OF THOSE 51, UH, THOUSAND 390 THAT WE TALKED ABOUT, UH, 28,000, UH, 968 OR ABOUT 56% OF THEM ARE PAID AS OF, UH, THE END OF THE AUDIT, WHICH EQUATED TO ABOUT $974,225 BEING COLLECTED.
UM, OF THAT 51,390, APPROXIMATELY, UM, NINE OR 20,000 WERE EITHER IN DELINQUENT OR IN, UH, SOME FORM OF COLLECTION.
AND THOSE, UM, OUTSTANDING BALANCES ARE VALUED AT AROUND 1.1 MILLION.
SO NEXT WE TOOK A LOOK AT THE PAYMENT RATE BY THE PENALTY AMOUNT.
SO ON THE LEFT, YOU'LL SEE THE STANDARD, UH, CITATION AMOUNTS THAT AARON SPOKE ABOUT FOR A NORMAL VEHICLE PICKUP TRUCK, CAR, SUV.
AND ON THE RIGHT YOU'LL SEE, UH, FOR OVERSIZED VEHICLES, THE 75 100, 1 50, UM, THE LESSER AMOUNT BEING FOR FIRST CITATION, MIDDLE AMOUNT BEING FOR THE SECOND CITATION, AND THE THIRD BEING FOR, UH, THREE OR MORE CITATIONS ON THAT SAME VEHICLE.
UH, SO TAKING A LOOK AT IT, WE SEE THAT, UH, THE LOWER CITATION AMOUNTS, THE FIRST VIOLATION FOR THE, UH, NORMAL VEHICLES HAS A PAYMENT RATE OF 63%.
THAT MEANS 63% OF PEOPLE WHO RECEIVED A, UM, VIOLATION OR CITATION PAID IT.
UH, WE, IT GOES DOWN A LITTLE BIT ON THE OVERSIZE, BUT STILL, UH, 51%.
AND FOR ONGOING, THE, THE LARGER AMOUNTS DO DROP DOWN IN PAYMENT RATE.
SO WE NEXT TOOK A LOOK AT REPEAT VIOLATORS.
THESE ARE, UM, VIOLATORS WHO HAVE NOT PAID THEIR PENALTY FEES AS OF THE END OF THE AUDIT.
AND WE HAVE A BREAKDOWN OF THE TOP 10 OF THOSE HERE BELOW, UH, WITHOUT THE NAMES, UH, WITH NUMBER ONE COMING IN AT 115 UNPAID CITATIONS, UH, WITH A FEE OUTSTANDING OF APPROXIMATELY 12 OR $13,000.
SO NEXT, UH, WE HAVE A CHART SHOWING IN THE BLUE LINE HERE, UH, THE NUMBER OF CITATIONS ISSUED PER MONTH.
AND SO THAT'S GONNA BE ALL THE WAY FROM JANUARY 21, UH, BACK WHENEVER IT MORE GOT INTO FULL, UH, EFFECT.
AND THEN ALL THE WAY THROUGH THE END OF OUR SCOPE IN SEPTEMBER 24, THE BLUE LINE WOULD BE NUMBER OF CITATIONS ISSUED, AND THE GREEN, UH, BEING OUR NUMBER OF COMPLAINTS FROM EIST.
AND THE RED LINES THAT YOU'LL SEE ON THERE ARE OUR AVERAGES FOR TWO YEAR PERIODS.
THIS ONE IS A LITTLE BIT SHORTER THAN A TWO YEAR PERIOD, 'CAUSE IT ENDS IN SEPTEMBER.
UM, BUT FOR JANUARY 21 THROUGH, UM, SORRY, THE END OF 23 OR 22 WAS HERE AND THEN DROPPED DOWN A LITTLE BIT FOR THE NEXT, UH, 23 AND 24.
SO, AND THE REASON THAT YOU'LL SEE A LITTLE BIT OF A, UM, DECREASE THERE IN THE NUMBER OF CITATIONS BEING WRITTEN IS DUE TO A EMPHASIS BEING PLACED ON ADDRESSING VIOLATIONS REPORTED INSTEAD OF NECESSARILY, UM, ANOTHER WAY, BASICALLY USING A COMPLAINT DRIVEN STRATEGY, WANTING TO FOCUS ON WHAT THE CITIZENS ARE COMPLAINING ON.
UH, SEVERAL OTHER VARIABLES MAY HAVE CONTRIBUTED TO THIS DECREASE, UH, SUCH AS RESOURCE LIMITATIONS, PUBLIC AWARENESS OF AND COMPLIANCE WITH THE LOCAL PARKING LAWS.
AS PEOPLE ARE GETTING CITATIONS, THEY'RE GONNA KNOW NOT TO DO IT AGAIN.
AND SO SOMETIMES THE CITATIONS CAN GO DOWN, UH, TO PROMOTE COMPLIANCE.
THE SECTION 24.45 OF THE CITY ORDINANCE AUTHORIZES FIVE METHODS OF ENFORCEMENT.
THESE METHODS INCLUDE ASSESSING A LATE FEE, TRANSFERRING CASES TO A COLLECTION AGENCY, IMMOBILIZING VEHICLES, IMPOUNDING VEHICLES, AND THE DENIAL
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OF ANY PARKING PERMITS OR PARKING PRIVILEGES ISSUED OR GRANTED BY THE CITY.SO CURRENTLY THE CITY IS USING LATE FEES, COLLECTION EFFORTS AND IMPOUNDING VEHICLES FOR CERTAIN VIOLATIONS, UH, RELATED TO TRAFFIC AND SAFETY CONCERNS.
HOWEVER, THE CITY IS NOT IMMOBILIZING OR IMPOUNDING VEHICLES FOR ENFORCEMENT PURPOSES.
UH, THE CITY ORDINANCES ARE SILENT ON WHETHER OUTSTANDING PENALTIES OR FEES ARE REQUIRED TO BE PAID BEFORE THE RELEASE OF AN IMPOUNDED OR IMMOBILIZED VEHICLE.
UH, THE CITY ORDINANCES EXPLAIN THAT A VEHICLE MAY BE IMPOUNDED FROM A PUBLIC PLACE IF THE OWNER HAS COMMITTED FIVE OR MORE PARKING VIOLATIONS IN ANY 12 MONTH PERIOD, AND THEY HAVE NOT BEEN RESOLVED BY A FINDING OF NO LIABILITY OR BY PAYMENT OF ALL PENALTIES AND COSTS ASSESSED BY THE HEARING OFFICER.
SO ADDITIONALLY, A VEHICLE LOCATED IN A PUBLIC PLACE MAY BE IMMOBILIZED IF THE OWNER HAS COMMITTED THREE OR MORE PARKING VIOLATIONS IN ANY 12 MONTH PERIOD, AND THAT HAVE NOT BEEN RESOLVED, UH, BY AN ORDER OR FINDING OF NO LIABILITY OR BY PAYMENT OF ALL THE PENALTIES.
SO WE TOOK A LOOK AT THE, UH, PEOPLE WITH OUTSTANDING CITATIONS, PEOPLE WHO HAVEN'T PAID, AND WE BROKE IT OUT, UH, TO SEE HOW MANY PEOPLE THAT WOULD AFFECT, UM, IF WE WERE TO USE THE IMMOBILIZATION OR IMPOUNDMENT.
SO WE FOUND THAT 786 PEOPLE HAVE RECEIVED, UH, THREE TO FOUR CITATIONS WITHIN A 12 MONTH PERIOD, UH, SOMETIME DURING THAT AUTO, OUR AUTO SCOPE, UH, WHICH TOTALED AROUND 2060 CITATIONS.
UH, ADDITIONALLY, 360 PEOPLE RECEIVED AT LEAST FIVE CITATIONS WITHIN A 12 MONTH PERIOD TOTALING TO 2,109 CITATIONS.
AND YOU CAN SEE IT HERE IN TABLE FORM BELOW.
SO PRIOR TO ENFORCING ANY OF THESE COMPLIANCES OF, UH, CITATION PAYMENTS THROUGH IMMOBILIZING OR IMPOUNDING VEHICLES, THE CITY MUST FILE AN ORDER OF LIABILITY AND NOTIFY THE VIOLATOR OF THEIR LIABILITY, UH, WHICH IS IN SECTION 24.5 B OF THE CITY ORDINANCES.
UH, SINCE MAY, 2023, THE CITY MARSHAL HAS BEEN WORKING WITH THE CITATION SYSTEM VENDOR TO GENERATE THE ORDERS OF LIABILITY AND ISSUE NOTICES TO VIOLATORS IN AN EFFICIENT MANNER.
HOWEVER, IN JUNE, 2024, THE VENDOR INFORMED THE CITY MARSHAL, THEY WILL NOT BE ABLE TO ASSIST WITH THIS REQUEST.
UM, DURING THE AUDIT, THE CITY MARSHAL IDENTIFIED A METHOD TO GENERATE THE ORDERS OF LIABILITY AND IS CURRENTLY IN THE PROCESS OF MAILING THESE NOTICES OUT TO VIOLATORS.
SO IA RECOMMENDS THAT MANAGEMENT SHOULD REQUEST THE ORDINANCE BE UPDATED TO CLARIFY OUTSTANDING PENALTIES OR FEES ARE REQUIRED TO BE PAID BEFORE THE RELEASE OF AN IMPOUNDED OR IMMOBILIZED VEHICLE SHOULD DEVELOP AND IMPLEMENT POLICIES AND PROCEDURES THAT ENSURE THE TIMELY FINDING OF AND FILING OF ORDERS OF LIABILITY AND ISSUANCE OF LIABILITY.
NOTICE LETTERS SHOULD FILE OUTSTANDING ORDERS OF LIABILITY AND SEND TO CORRESPONDING NOTICES OF LIABILITY.
SHOULD EVALUATE THE USE OF ALL ENFORCEMENT METHODS MADE AVAILABLE BY THE CITY ORDINANCES AND EVALUATE THE, UH, USE, OR, SORRY, EVALUATE THE NEED FOR ADDITIONAL ADMINISTRATIVE RESOURCES, SUPPORT OR EXPERTISE TO STREAMLINE AND AUTOMATE PROCESSES.
MANAGEMENT CONCURS, UM, AGREED AND WILL MEET WITH THE ADMINISTRATIVE HEARING OFFICER AND THE BARNACLE COMPANY, UM, IS WELL TO FIGURE OUT AN IMPLEMENTATION DATE.
AND THE IMPLEMENTATION DATE THAT THEY HAVE STATED FOR THAT IS JANUARY 30TH, 2025.
SO, MOVING ON NEXT, WE'RE GONNA TAKE A LOOK AT LATE FEES.
AS OF SEPTEMBER 30TH, 2024, 3,494.
DELINQUENT CITATIONS DID NOT HAVE LATE FEES APPLIED, UH, TO THE CITATION TOTALING $87,350 IN UNASSESSED FEES.
THE MAJORITY OF THE CITATIONS WITHOUT A LATE FEE APPLIED ARE LIKELY DUE TO A SETTING WITHIN THE CITATION SYSTEM THAT OMITTED LATE FEES FOR A SINGLE VIOLATION TYPE, UH, SPECIFICALLY EXPIRED OR UNREGISTERED, UM, VEHICLES, UH, SECTION 24.44 B OF THE CITY ORDINANCE OF THE STATE, A CIVIL LIABILITY MUST BE PAID NO LATER THAN THE 65TH DAY AFTER THE ISSUANCE OF THE CITATION.
AND A PENALTY PAID AFTER THAT DATE IS SUBJECT TO A $25 LATE FEE PAYABLE TO THE CITY.
SO IA RECOMMENDS THAT MANAGEMENT SHOULD CONSIDER ADDING THE LATE FEE PENALTY TO ANY QUALIFIED OPEN CITATIONS AND SHOULD REVIEW THE FEE ASSESSMENT SETTINGS IN THE CITATION SYSTEM AND PERIODICALLY REVIEW QUALIFIED CITATIONS FOR ACCURACY MANAGEMENT CONCURS AND HAS AN IMPLEMENTATION DATE OF COMMENT SAYING THE LATE FEE ASSESSMENT SETTINGS WERE UPDATED PRIOR TO THE AUDIT BEGINNING.
AND THE CITY MARSHAL WILL INCLUDE PROCEDURES FOR AUDITING FUTURE LATE FEE ASSESSMENTS, AND THE UPDATED PROCEDURES HE IS DRAFTING.
IMPLEMENTATION DATE FOR THE PROCEDURES IS JANUARY 30TH, 2025 OR BEFORE.
UM, FOR THE THIRD OBSERVATION, UH, THERE WERE CUSTOMERS THAT WERE PAYING THEIR CITATION PENALTIES IN THE, UH, MUNICIPAL COURT PAYMENT PORTAL.
SO IF YOU GOOGLE GARLAND CITATION PARKING CITATION, UM, THE NEIGHBORHOOD ENFORCEMENT PROGRAM WEBSITE AND
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THE MUNICIPAL COURT PROGRAM OR WEBSITE SHOWS UP, UM, ON THE MUNICIPAL COURT WEBSITE, THERE'S A LOT OF INSTRUCTIONS DIRECTING YOU TO THE NEIGHBORHOOD PROGRAM OR NEIGHBORHOOD ENFORCEMENT PROGRAM.IF YOU TRY TO PAY FOR A PARKING CITATION IN THE MUNICIPAL COURT PAYMENT PORTAL, THERE'S MORE INSTRUCTIONS THERE THAT TELL YOU GO TO THIS OTHER SITE.
UM, BUT THEY STILL RECEIVE PAYMENT.
SO WITHIN THE WHOLE SCOPE OF THE AUDIT, THERE WERE 76 PARKING CITATIONS THAT WERE PAID THROUGH THE MUNICIPAL COURT.
UM, SO WE LOOKED THROUGH ALL OF THOSE TO SEE IF THEY WERE UPDATED STATUS WISE IN THE PRIMARY CITATION SYSTEM.
SO EIGHT OF THEM WE FOUND THAT HAD BEEN PAID, BUT THROUGH THE MUNICIPAL COURT SYSTEM, WERE NOT UPDATED AS SUCH IN THE CITATION SYSTEM.
FIVE OF THOSE WERE IN COLLECTION STATUS AND, UM, TWO OF THEM WE COULDN'T FIND.
AND THEN ONE WAS JUST LATE, NOT YET IN COLLECTIONS.
SO OUR RECOMMENDATION IS THAT MANAGEMENT RESEARCH AND UPDATE EIGHT CITATION, THE EIGHT CITATION RECORDS PAID THROUGH THE COURT PORTAL AND DEVELOP POLICY AND PROCEDURES TO ENSURE ALL PAYMENTS ARE ACCURATELY RECORDED.
MANAGEMENT CONCURS, UH, THE CITY MARSHAL IMPLEMENTED A PROCEDURE BEFORE THIS AUDIT STARTED TO ENSURE PAYMENTS MADE TO THE INCORRECT PAYMENT PORTAL WERE ACCEPTED AND PROCESSED IN A TIMELY MANNER.
AND THE CITATIONS WERE UPDATED TO REFLECT PAYMENTS.
UM, BEFORE THIS PLAN, UM, THE MUNICIPAL COURT WOULD JUST REJECT IT.
AND SO THEY WOULD CALL THE THE VIOLATOR BACK AND LET 'EM KNOW, YOU KNOW, HEY, DON'T PAY THIS, BUT THE CITY MARSHAL SET IT UP WHERE AT LEAST WE'RE GETTING THE PAYMENT FIRST AND THEN WE'RE, YOU KNOW, REDIRECTING THOSE FUNDS TO THE PROGRAM.
SO, UM, UNFORTUNATELY THERE WERE A FEW MISTAKES MADE ON UPDATING THE CITATIONS WITHIN THE CITATION SYSTEM.
EIGHT RECORDS IDENTIFIED BY INTERNAL AUDIT HAVE BEEN RESEARCHED PROPERLY, UPDATED AND PROPERLY UPDATED IN THE CITATION SYSTEM.
LATE AND OR COLLECTION FEES HAVE BEEN REMOVED AND REFUNDS HAVE BEEN INITIATED AS APPLICABLE.
MONITOR MONITORING PROCEDURES WILL BE ADDED TO THE CURRENT PROCEDURES AS AN ADDED CONTROL, AND THE IMPLEMENTATION DATES PASSED AS DECEMBER 5TH, 2024.
UH, THE FOURTH OBSERVATION, UM, IS REGARDING PARTIAL AND OVERPAYMENTS.
SO THE CITATION SYSTEM WAS NOT CONFIGURED TO RECEIVE PARTIAL AND OVERPAYMENTS, PARTIAL OR OVERPAYMENTS RECEIVED, UM, OR RECEIVED VIA MAIL OR DROPBOX AND RETURNED TO THE SENDER.
SO MANAGEMENT, UM, OUR RECOMMENDATION IS MANAGEMENT SHOULD DEVELOP AND IMPLEMENT POLICY AND PROCEDURES FOR PROCESSING PARTIAL PAYMENTS AND OVERPAYMENT REFUNDS, AND CONFIGURE THE SYSTEM TO ENABLE THE ACCEPTANCE OF THESE TYPE OF PAYMENTS MANAGEMENT CONCURS.
UM, BOTH CONFIGURATION RECOMMENDATIONS WERE COMPLETED DURING THE AUDIT.
THE ABILITY TO SET ACCEPT PARTIAL PAYMENTS WAS TURNED ON AT THE START OF THE AUDIT.
THE ABILITY TO PROCESS OVERPAYMENTS WAS TURNED ON IN NOVEMBER.
TOWARD THE END OF THE AUDIT, UH, THE CITY MARSHAL WILL DEVELOP AND IMPLEMENT A WRITTEN POLICY FOR PROCESSING PARTIAL PAYMENTS AND OVERPAYMENT REFUNDS.
THE PROCEDURES FOR ACCEPTING BOTH PARTIAL AND OVERPAYMENTS ARE IN PLACE AND WORKING THE CITY MARSHAL'S WORKING THROUGH THE REFUND PROCESS.
SO AGAIN, THAT IMPLEMENTATION DATE WAS DECEMBER 5TH.
AND THEN THE FIFTH OBSERVATION IS REGARDING THIRD PARTY PAYMENTS.
UM, SO WHEN WE RECEIVE PAYMENTS FROM COLLECTIONS OR THAT ARE FORWARDED FROM OUR CITATION, UH, VENDOR, UM, THE CITY DOESN'T PERFORM A THREE-WAY MONTHLY RECONCILIATION BETWEEN THE TRANSACTION REPORTS, UM, FROM THE SYSTEM, OUR BANK STATEMENTS, AND THE GENERAL LEDGER TO VERIFY THE ACCURACY AND THE TIMELINESS OF THE VENDOR DEPOSITS.
SO THE GAPING PROCEDURES COULD LEAD TO POTENTIAL FINANCIAL LOSS AS THIRD PARTY AGENCIES MAY OWE THE CITY UNPAID FUNDS OR SUBMIT PAYMENTS UNTIMELY WITHOUT DETECTION.
OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD COORDINATE WITH FINANCE TO DEVELOP A RECONCILIATION PROCESS BETWEEN THE INDEPENDENTLY GENERATED TRANSACTION REPORTS, THE CITY'S BANK STATEMENTS, AND THE CITY'S GENERAL LEDGER MANAGEMENT.
CONCURS AND THE CITY MARSHAL WILL WORK WITH FINANCE AND THE VENDOR TO ATTEMPT TO PROCESS THOSE RECOMMENDED IMPLEMENTATION DATE.
UM, WE FOUND THAT FOUR INDIVIDUALS, INCLUDING EMPLOYEES FROM THE CUSTOMER SERVICE DEPARTMENT AND THE CITY MARSHAL'S OFFICE, WERE FOUND TO HAVE UNNECESSARY ADMINISTRATIVE ACCESS RIGHTS WITHIN THE SYSTEM.
THIS COULD LEAD TO INAPPROPRIATE ACTIONS WITHIN THE SYSTEM AS UNRESTRICTED ADMINISTRATIVE RIGHTS MAY ALLOW UNAUTHORIZED OR ACCIDENTAL CHANGES.
DURING THE AUDIT, THE CITY MARSHAL MARSHAL PROACTIVELY RESTRICTED ACCESS TO APPROPRIATE PERSONNEL IMMEDIATELY.
OUR RECOMMENDATION IS THAT MANAGEMENT PERIODICALLY REVIEW THE ACCESS RIGHTS FOR APPROPRIATENESS MANAGEMENT.
CONCURS THE CITY MARSHAL REMOVE THE ADMINISTRATIVE ACCESS RIGHTS FROM THE USERS WHO DIDN'T NEED THOSE RIGHTS AT THE VERY BEGINNING OF THE AUDIT.
AND HE'S CREATING A WRITTEN POLICY AND PROCEDURES FOR AUDITING THE PERMISSIONS ON A SEMI-ANNUAL BASIS.
FOR THE SEVENTH OBSERVATION, UH, WE LOOKED AT 73 CITATIONS THAT HAD PHOTOGRAPH PHOTOGRAPHIC EVIDENCE OF THE VIOLATION.
UM, 10 OF THE CITATIONS, UH, DID NOT EITHER HAVE, UM, A PHOTOGRAPH OF THE
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VIOLATION ITSELF OR AN IDENTIFYING PICTURE OF THE VEHICLE, SO LIKE A LICENSE PLATE OR THE VIN.UM, AND THE ORDINANCE STATES THAT IF PHOTOGRAPHS ARE TAKEN, BASICALLY IT NEEDS TO HAVE A PICTURE OF THE VIOLATION OR A PICTURE OF AN IDENTIFYING PLATE OR VIN NUMBER.
UM, SO OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD DEVELOP A POLICY FOR PHOTOGRAPHIC REQUIREMENTS TO ENSURE THAT ALL CITATION PHOTOGRAPHS CLEARLY CAPTURE THE VIOLATION AND PROVIDE IDENTIFIABLE OF VEHICLE INFORMATION IF AVAILABLE, AND PERIODICALLY REVIEW THE EVIDENCE TO MAKE, MAINTAIN CONSISTENCY AND UPHOLD THE STANDARDS MANAGEMENT CONCURS.
UM, THE CITY MARSHAL VERBALLY INSTRUCTED ALL DE DEPUTIES TO ATTEMPT TO CAPTURE PHOTOGRAPHS DEPICTING THE VIOLATION AND IDENTIFIABLE VEHICLE INFORMATION.
HE WILL RECOMMEND A CHANGE TO THE CITY ORDINANCES TO FURTHER CLARIFY THE PHOTOGRAPHIC REQUIREMENTS.
AND THE MARSHAL WILL DEVELOP AND IMPLEMENT A WRITTEN POLICY AND PROCEDURES REQUIRING DEPUTIES TO CAPTURE THE EVIDENCE WHEN POSSIBLE AND PERIODICALLY REVIEW THE EVIDENCE AS WELL FOR THE EIGHTH OBSERVATION.
UM, WHEN, SO THERE'S THE CITY MARSHAL CAN IMPOUND VEHICLES FOR DIFFERENT REASONS, INCLUDING ENFORCEMENT PURPOSES.
UM, LIKE AFTER 48 HOURS OF NO MOVEMENT OR FOR CERTAIN DELINQUENT, UH, CITATIONS AND OTHER TRAFFIC AND SAFETY CONCERNS.
UM, SOME OF THESE MIGHT EVENTUALLY, UM, BE AUCTIONED OFF AND WHEN THEY ARE, NO PORTION OF THE AUCTION PROCEEDS IS CREDITED BACK TOWARD, UM, OUTSTANDING CITATION AMOUNTS OR TO THE PARKING ENFORCEMENT PROGRAM.
AND THE CITY ORDINANCES ARE SILENT ON WHETHER THE PROCEEDS CAN BE USED FOR THOSE OUTSTANDING PENALTIES OR FEES.
SO OUR SUGGESTION IS THAT, UM, MANAGEMENT SHOULD REQUEST CITY ORDINANCES BE UPDATED TO ALLOW FOR THE USE OF AUCTION PROCEEDS USED TO PAY PENALTIES OR FEES, AND COORDINATE WITH FINANCE TO REALLOCATE A PORTION OF THE AUCTION PROCEEDS FOR VEHICLES IMPOUNDED UNDER THE PARKING ENFORCEMENT PROGRAM.
MANAGEMENT CONCURS AND WILL MAKE RECOMMENDATIONS TO THE COUNCIL ON REVISING THE CITY ORDINANCES ON THIS TOPIC.
IF THE REVISIONS APPROVED, THE MARSHAL WILL WORK TO UPDATE CITATION RECORDS TO REFLECT PAYMENT WHEN VEHICLES ARE AUCTIONED RELATED TO THE ENFORCEMENT OF PARKING OFFENSE ORDINANCES, AND THE IMPLEMENTATION DATE'S APRIL 1ST AND THEN THE NINTH OBSERVATION.
UM, WE OBSERVED FREQUENT AND SIGNIFICANT GAPS IN THE SEQUENTIAL NUMBERING OF CITATIONS TOTALING AROUND TWO 60 INSTANCES OF GAPS AND ABOUT 25,000 UNALLOCATED CITATION NUMBERS.
SO NOT YET ISSUED OR USED CITATION NUMBERS.
UM, PER THE CITATION SYSTEM VENDOR.
THE GAPS ARE CAUSED BY A FEW REASONS, UM, MAINLY BECAUSE OF THE WAY THEY, UH, USE A BATCH METHOD WHEN THEY ALLOCATE THEIR CITATION NUMBERS TO SPECIFIC DEVICES.
UM, THAT COUPLED WITH DEVICE REPLACEMENTS, TEMPORARY LOANER DEVICES, REINSTALLATION OF THE SOFTWARE, THE SOFTWARE COULD CRASH OR GLITCH THOSE CAUSE THOSE GAPS TO OCCUR.
UM, BUT IDEALLY, CITATION NUMBERING SHOULD BE SEQUENTIAL TO MAINTAIN ACCURATE RECORDS AND ENSURE COMPLETENESS AND CITATION TRACKING.
SO OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD COORDINATE WITH THE CITATION SYSTEM VENDOR TO RESOLVE THE CRE, THE CREATION OF GAPS IN THE SEQUENTIAL NUMBERING OF CITATIONS MANAGEMENT CONCURS ACCORDING TO THE VENDOR, THE CURRENT SOFTWARE WAS NOT DESIGNED TO PREVENT GAPS IN SEQUENTIAL NUMBER OF CITATIONS.
UM, THE CITY MARSHAL WILL FILE AN ENHANCEMENT REQUEST WITH THE VENDOR TO ADJUST THE PROGRAMMING TO ACCOMPLISH THE RECOMMENDATION.
AND THAT IMPLEMENTATION DATES JANUARY 30TH, 2025.
WE SAMPLED 68 CITATIONS, UM, TO SEE IF THE AUTOMATIC NOTIFICATIONS WERE BEING SENT OUT BY THE VENDOR.
UM, THEY'RE SUPPOSED TO SEND OUT ABOUT THREE OF THEM.
ONE INCLUDES A DELINQUENT NOTIFICATION BEFORE, UH, LATE FEES APPLIED.
UH, WE FOUND THAT 48 OF THOSE CITATIONS DID NOT HAVE A DELINQUENT NOTIFICATION PER THE CITY'S CONTRACT WITH THE, THE VENDOR THEY'RE REQUIRED TO SEND THREE.
UM, THERE SYSTEM CHANGE LOGS INDICATE THE DELINQUENT NOTIFICATIONS WERE DISABLED IN 2021 AND LATER ENABLED IN FEBRUARY OF 23.
UM, BUT EVEN THEN EIGHT OF THE, UH, CITATIONS THAT WE SAMPLED HAD NO, UH, RECORDS OF DELINQUENT NOTICES, EVEN IF THEY WERE AFTER FEBRUARY OF 2023.
SO OUR RECOMMENDATIONS MANAGEMENT SHOULD WORK WITH THE CITATION SYSTEM VENDOR TO ENSURE CITATION NOTIFICATIONS ARE ISSUED AND CORRESPONDING DETAILS ARE RECORDED IN THE SYSTEM MANAGEMENT CONCURS AND THE CITY MARSHAL WILL CREATE A PROCEDURE TO PERIODICALLY AUDIT THE NOTICES AND ENSURE NOTICES ARE SENT IN COMPLIANCE WITH THE CITY ORDINANCES.
AND IF FUTURE PROBLEMS ARE IDENTIFIED, THE CITY MARSHAL WILL WORK WITH A VENDOR TO RESOLVE THE PROBLEMS THAT IMPLEMENTATION DATE'S.
OBSERVATION 10 ADMINISTRATIVE HEARINGS ARE HELD AT THE MUNICIPAL COURT BUILDING.
HOWEVER, IN-PERSON PAYMENTS ARE ONLY ACCEPTED AT THE CUSTOMER SERVICES BUILDING, WHICH IS APPROXIMATELY A MILE AWAY.
SO IN AN EXAMPLE SCENARIO, IF A VIOLATOR GOES TO THE CUSTOMER SERVICE BUILDING TO MAKE A PAYMENT AND THEY FIGURE OUT, OR THEY WANNA ASK A QUESTION ABOUT THEIR RIGHT TO APPEAR BEFORE THE HEARING OFFICER, UM, THEY HAVE TO GO TO THE MUNICIPAL COURT BUILDING AND IF THEY'RE FOUND
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LIABLE, THEY HAVE AND WANT TO MAKE AN IN-PERSON PAYMENT, THEY GO BACK TO THE CUSTOMER SERVICE BUILDING.SO YOU CAN SEE HOW IT COULD BE INCONVENIENT AND FRUSTRATING OR CONFUSING.
UM, SO OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD STREAMLINE THE PAYMENT PROCESS BY CO-LOCATING BOTH THE ADMINISTRATIVE HEARING AND THE PAYMENT FUNCTIONS INTO A CENTRALIZED LOCATION.
MANAGEMENT CONCURS, THE HEARING OFFICER WILL MOVE OFFICES IN JANUARY OR FEBRUARY OF 2025.
THE HEARING OFFICER WILL HAVE AN OFFICE WITHIN THE CUSTOMER SERVICES BUILDING AND INTO THE SAME AREA OF THE BUILDING WHERE IN-PERSON PAYMENTS FOR PARKING VIOLATIONS ARE ACCEPTED.
AND THAT IMPLEMENTATION DATES FEBRUARY 1ST, 2025.
AND THEN FOR THE FINAL OBSERVATION, UM, CURRENTLY, OR AT LEAST DURING THE SCOPE OF THE AUDIT, THERE WERE NO FORMAL, UM, POLICIES OR PROCEDURES.
INSTEAD, UM, THEY HAD INFORMAL, UH, PROCEDURES THAT LACKED COMPREHENSIVENESS, WHICH INCREASES RISK OF ERRORS, INCONSISTENCY AND PERFORMANCE, OPERATIONAL INEFFICIENCIES, REDUCED QUALITY, AND, UH, DECREASED ACCOUNTABILITY.
SO OUR RECOMMENDATION IS THAT MANAGEMENT CREATE A SET OF FORMAL POLICIES AND PROCEDURES COVERING AT MINIMUM, UM, A LIST OF SEVERAL THINGS THAT WE ALREADY TALKED ABOUT IN THE REPORT MANAGEMENT, CONCURS AND, UM, OF CITY MARSHAL WILL CREATE A WRITTEN POLICY, UH, CONTAINING PROCEDURES COVERING EACH OF THE RECOMMENDED PARKING ENFORCEMENT PROCESSES.
AND THAT IMPLEMENTATION DATE IS JANUARY 30TH, 2025.
ARE THERE ANY QUESTIONS? OKAY.
COMMITTEE, YOU'VE HEARD THE REPORT OF THE AUDIT TEAM, YOUR THOUGHTS? THANK YOU, MR. CHAIRMAN.
THANK YOU FOR, FOR THE WORK Y'ALL DID.
UM, THIS, THIS, THIS SATURDAY.
I'M NOT GONNA TRY TO ADDRESS SPECIFIC FINDINGS THAT YOU'VE GONE OVER.
WHAT, UH, TELL ME WHAT IS THE FARTHEST DATE, ACTION DATE FOR AN ACTION IN THIS REPORT? TELL ME AGAIN.
I THINK IT'S APRIL, ACTUALLY, I THINK THERE'S AN APRIL ONE IN HERE.
AND THERE WAS ONE FEBRUARY, RIGHT? THERE'S A FEBRUARY 1ST.
MOST ARE JANUARY 30TH, AND SOME OF THEM HAVE PASSED ALREADY DECEMBER 5TH, BUT I BELIEVE THERE'S AN APRIL ONE IN HERE SOMEWHERE.
BUT THE MAJORITY OF THEM ARE, THE, OF THE BOTTLE REPS ARE FOR FEBRUARY, UM, DECEMBER, I'M SORRY, END OF JANUARY.
I WOULD LIKE TO GET US TO GET AN UPDATE ADDRESSING ALL OF THE FINDINGS THAT WERE IDENTIFIED IN THIS REPORT.
MAY I COUNCILMAN, MAY I, I DON'T CLARIFY A FEW THINGS YES.
UM, WELL, THE IMPLEMENTATION DATE THAT WE HAVE IN THE REPORT IS TO, UM, WORK THROUGH SOME, UM, POLICY DECISIONS AS WELL.
SO NOT EVERY OBSERVATION IN HERE IS GOING TO BE RESOLVED BY APRIL, 2025, FOR EXAMPLE.
SOME OF THESE ORDINANCE NEEDS TO BE CHANGED, SO IT HAS TO COME TO THE COUNCIL AND EVEN ENFORCEMENT EFFORTS.
COUNCIL WILL HAVE TO, UH, CORRECT ME, BRIAN IF I'M WRONG, WE'LL HAVE TO PROVIDE SOME GUIDANCE TO THE CITY MARSHAL'S OFFICE, YOU KNOW, HOW MUCH EFFORT THAT WE NEED TO MAKE IN ENFORCING SOME OF THE, UM, PUTTING BARNACLES OR, UH, TOWING, ALL OF THAT STUFF.
SO NOT EVERYTHING THAT WE OBSERVED HERE WILL BE IMPLEMENTED BY APRIL OR JANUARY OF 2024.
FURTHER DISCUSSION NEEDS TO BE MADE.
THOSE THINGS THAT ARE WITHIN THE PURVIEW OF THE, UH, THE MARSHALL'S OFFICE.
THOSE THINGS THAT YOU JUDGE, THAT YOU'VE REFERRED TO, I UNDERSTAND THAT COUNCIL ACTION REQUIRE POLICY, BUT FOR THOSE THINGS THAT ARE WITHIN THEIR PURVIEW, UH, I WOULD LIKE TO SEE, GET AN UPDATE, UH, SOMETIMES AFTER THAT JANUARY DATE, THEN SAYS THE MAJORITY OF THEM, AND THE ONLY SPECIFIC ONE I'LL MENTION, YOU MENTIONED PAYMENTS THROUGH THE MUNICIPAL COURT AND PAYMENT THROUGH, UH, ANOTHER MEANS I'D LIKE FOR THAT ONE TO BE ADDRESSED IN THE UPDATE.
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I RECOGNIZING WHAT JUDGE HAS SAID, THAT SOME OF THIS IS GONNA REQUIRE COUNCIL REVIEW AND POLICY CHANGES, UH, AND ET CETERA.BUT THOSE THINGS THAT ARE WITHIN CONTROL, YOU BREAK THOSE OUT AND PROVIDE, UH, AN UPDATE, UH, AT THE END OF THAT.
I THINK IT WAS JANUARY 25TH, SOMEWHERE LIKE THAT.
SO, UH, MAYBE, UH, EARLY FEBRUARY IF WE COULD LOOK AT THOSE JU DO, DO YOU, DO YOU MIND IF YOU WORK WITH THE MARSHALL'S OFFICE AND, AND PROVIDE YOU WITH A DATE A LITTLE LATER? OKAY.
IF THAT'S OKAY WITH YOU, BECAUSE TO BE HONEST WITH YOU, NEXT AUDIT COMMITTEE MEETING IS IN MARCH.
WE HAVE THE EXTERNAL AUDITORS HERE AND THERE'S A LOT OF AGENDAS.
SO ARE YOU OKAY, COUNCILMAN, MAYBE IN JUNE OR SEPTEMBER OF THIS YEAR, NEXT YEAR, 2025, AN UPDATE? WELL, I'LL, THAT WOULD GIVE THEM A LITTLE BIT OF TIME TO FURTHER IMPLEMENT MORE RECOMMENDATIONS, IF THAT'S OKAY WITH YOU.
AND, AND, UH, IF THAT'S OKAY WITH YOU YEAH, WITH JUNE AND RECOGNIZING WHAT YOU SAID, THAT, THAT WE, WE RECOGNIZE THAT THE COUNCIL ACTION POLICIES HAVE TO BE CHANGED, ARE ADDRESSED, ARE MADE, UH, NOT WITH STATING THAT IF, IF JUNE IS IS SUFFICIENT, SUFFICIENT, THEN I ACCEPT THAT.
IF I'M PERFECTLY HONEST WITH YOU, I THINK, UM, SEAN NEEDS SOME HELP.
UH, HE'S ACTUALLY SHORTHANDED AT THIS POINT.
HE'S BEEN THE ADMINISTRATOR, HE'S BEEN THE SYSTEM ADMINISTRATOR.
SO I FEEL FOR HIM, WE ALREADY TOOK A LOT OF HIS TIME AS PART OF THIS AUDIT, AND I WOULD LIKE TO, YOU KNOW, BE REASONABLE.
AND I, I COMPLETELY UNDERSTAND, TO BE HONEST WITH YOU, HE, HE HAS IMPLEMENTED THE THINGS THAT HE COULD ALREADY.
SO, UH, I JUST WANT TO GIVE HIM A LITTLE BIT ABOUT TIME AS WELL.
SO AGAIN, WHAT DO YOU THINK IS HE, UH, IS, IS A SUFFICIENT AMOUNT OF TIME TO, TO GET AN UPDATE ON THESE, THOSE THAT ARE NOT ORDINANCE CHANGES, THINGS THAT ACTIONS THAT THE COUNCIL HAS TO ADDRESS.
WHAT DO YOU THINK IS SUFFICIENT TIME COUNCILMAN? UM, IF I, IF I CAN, IT MIGHT BE, UM, IT MIGHT BE MORE STREAMLINED IF, AS WE IMPLEMENT THE RECOMMENDATIONS GOING FORWARD, IF WE SEND AN EMAIL OUT, IF I SEND AN EMAIL OUT TO THE COMMITTEE OR THE COUNCIL AT LARGE, EITHER ONE, UM, OKAY.
UM, SEND AN EMAIL OUT AND SAY, JUST SO Y'ALL KNOW, FOLLOWING UP, WE, THIS, THIS WEEK, WE IMPLEMENTED THIS PORTION BASED ON THIS RECOMMENDATION.
UH, WE COULD CERTAINLY DO THAT.
AND Y'ALL COULD SEE THE PROGRESS BEING MADE ON THAT.
HAVING HARD TIMELINES IS DIFFICULT FOR THE REASONS THAT HE SUGGESTED.
BUT ALSO, UM, EVEN THE COUNCIL POLICY DISCUSSION IS GOING TO BE, UM, IT COULD TAKE TWO OR THREE WORK SESSIONS TO WORK THROUGH THAT BECAUSE THERE ARE SOME LEGAL CONCERNS WITH SOME OF THE ORDINANCE CHANGES RECOMMENDATIONS, AND THERE'S SOME RISKS TO BE FACTORED IN THERE.
AND, UM, UM, SOME OF THAT STUFF I'VE ALREADY STARTED LOOKING AT AND RESEARCHING, SOME OF IT'S GONNA END UP BEING A GRAY AREA ON HOW WE GO ABOUT TRYING TO MAKE COLLECTIONS.
AND, UM, AGAIN, THAT COULD TAKE QUITE A BIT OF TIME FOR COUNSEL TO WORK THROUGH MM-HMM
AND ALSO FOR, UH, MY TEAM TO WORK ON THE LEGAL SIDE OF THAT AND SOME OF THE LEGAL ISSUES THAT ARE A PART OF THAT.
WELL, IF, IF, IF, UH, IF JUDGE AND THE COMMITTEE, UH, HAVE SPECIFIC ITEMS THAT YOU WANT TO PROVIDE AN UPDATE, I'M GOOD WITH THE, IF IT, IF THE COMMITTEE IS GOOD WITH THAT, GETTING AN UPDATE TO THE CHAIRMAN OF THE COMMITTEE AND TAKE IT FROM THERE, I'M CERTAINLY GOOD WITH THAT ON, ON SPECIFIC ITEMS. I THINK THAT WOULD ACHIEVE THE SAME THING IF, IF HE, IF THAT IS ACCEPTABLE TO THE CHAIRMAN.
THE PAGE THAT YOU JUST TURNED AWAY FROM.
COULD YOU GO BACK TO IT AGAIN, SIR? I THINK WHAT I'M HEARING, UH, COMING FROM, UH, THE COUNCILMAN QUALIFY, CLARIFY FOR US THEN THE DATES IMPLEMENTATION DATE, APRIL 1ST, 2025, FOR EXAMPLE, IT SAYS THE CITY MARSHAL WILL MAKE RECOMMENDATIONS TO COUNCIL.
ON REVISITING OR REVISING THE CITY ORDINANCE TO COVER, I'M WONDERING NOW, WELL, WHAT ARE THE DATES, THE IMPLEMENTATION DATES, WHAT ARE YOU ATTEMPTING TO ACCOMPLISH WITH THOSE DATES THERE? BECAUSE IF INDEED WE NEEDED TO GO LONGER IN THE WAY OF WHEN IMPLEMENTATION WOULD TAKE PLACE, SHOULD NOT THE DATES HAVE BEEN EXTENDED?
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YEAH, ABSOLUTELY.SO THIS IMPLEMENTATION DATE IN HERE, OBVIOUSLY SOME OF THEM POLICIES AND PROCEDURES, YOU KNOW, THEY CAN WORK THROUGH THOSE.
BUT FOR EXAMPLE, UH, AS BRIAN SAID, UM, WE MADE A RECOMMENDATION TO UPDATE THE ORDINANCE IN THIS CASE.
AND MARSH CITY MARSHALS AGREED THAT THEY WILL TAKE THIS TO COUNCIL, UH, BY APRIL 1ST AND THEY WILL WORK THROUGH IT.
AND THEN AFTER THAT, YOU KNOW, HOW LONG IS THAT GONNA TAKE TO IMPLEMENT? UH, WE DON'T KNOW THAT THAT'S UNKNOWN AT THIS POINT, BUT AT LEAST THE POLICY WILL BE REVIEWED AND REVISED AND FINALIZED, UM, WITH THE COUNCIL BY APRIL 1ST, UH, 2025.
NOW, AGAIN, I THINK WHAT I HEAR HIM SAYING TOO IS THAT BE THE CASE.
UH, THERE ARE QUITE A FEW JANUARY 30TH AND 20 FIVES AND THINGS OF THAT NATURE THROUGHOUT THE, UH, AND LET ME SAY THIS, UH, HONESTLY WHAT I'M SEEING NOW IS WHAT I SAW DURING THE AUDIT, AND WE'VE JUST GOT, UH, A LOT OF PIECES HERE THAT, UH, THROUGHOUT THE ENTIRE, UH, DOCUMENT, THERE ARE JUST A, A LOT OF AREAS THAT WE RECOGNIZE NEED IMPROVEMENT.
AND WITH THOSE DATES ON THERE, OF COURSE THE DATES LOOK GOOD IN THAT WE'RE GONNA BE MO SCOTIA GETTING TO THAT.
WE'RE GONNA MAKE IT HAPPEN AS QUICKLY AS POSSIBLE.
BUT IF THOSE DATES ARE NOT ACCURATE IN THE WAY OF WHAT WE'RE DOING IN THE WAY OF IMPLEMENTATION, BECAUSE THERE ARE SOME DATES LIKE THE, THE APRIL DATE.
YEAH, YOU'RE GONNA HAVE TO BRING THAT TO COUNCIL.
BUT I SAW QUITE A FEW THINGS THERE WHERE, UH, YOU COULD REPORT BACK, YOU COULD REPORT BACK SOME OF THESE THINGS IN FEBRUARY, SOME I'M IN MARCH OF WHATEVER THE CASE MAY BE.
AND I THINK THAT'S WHAT THE COUNCILMAN IS ASKING IS THOSE AREAS WHERE COUNCIL IS GOING TO HAVE TO TAKE ACTION.
BUT THOSE ACTIONS WERE THE MARSHAL SERVICES.
I THINK HE'S ASKING FOR WHAT ARE SOME OF THE SOONER DATES THAT, IS THAT WHAT I'M GETTING FROM YOU, SIR? YES, SIR.
WE WANT TO CERTAINLY WORK, UH, WITH, WITH THE, THE, UH, MANAGEMENT STAFF YES.
TO GIVE THEM AS MUCH TIME AS YOU FEEL THAT THEY NEED TO, TO, TO ADDRESS IT.
AND I'M SAYING THAT IF YOU, YOU SAID YOU THREW OUT THE JUNE DATE, IF, IF, DO YOU FEEL COMFORTABLE NOT WITHSTANDING ACTIONS THAT THE COUNCIL POLICY CHANGES AND OTHER LEGAL ISSUES THAT WE HAVE TO LOOK AT, BUT DO YOU FEEL THAT BY JUNE 1ST THAT, THAT WE CAN BE BRIEFED AT LEAST ON THE PROGRESS COUNSEL, WHATEVER IT IS, JUST A BRIEFING, A STATUS REPORT ON THIS HAS BEEN DONE.
THIS IS A CITY ATTORNEY HAS REVIEWED IN THIS, SOMETHING HAS TO BE DONE.
HE DIDN'T THINK ABOUT IT FIRST.
I, I'M, I'M LOOKING FOR, DO YOU THINK THAT JUNE, THAT JUNE 1ST DATE IS ENOUGH TIME, NOT RESOLUTION OF ALL THOSE THINGS THAT'S IN THE REPORT, BUT AN UPDATE, A COMPREHENSIVE UPDATE IS SET, UPDATE ON WHERE THE LEGAL ISSUES OR, OR THE ADMINISTRATIVE ISSUES, UH, THE FEE ISSUES TOGETHER WHERE WE ARE ON THIS.
DO YOU FOLD THAT JUNE 1ST OF NEXT YEAR IS ENOUGH TIME TO ASK FOR A BRIEFING WHEREVER WE ARE? IF WE, IF WE STILL NEED COUNSEL TO TAKE SOME ACTION AFTER THAT, THEN SAY IT.
I MEAN, MY OPINION, UH, KNOWING SEAN AFTER WORKING THROUGH THIS, I KNOW HE GOES ABOVE AND BEYOND YES.
SO I THINK JUNE WOULD BE A GOOD TIMEFRAME.
I JUST DON'T WANT HIM TO LEAVE THE CITY.
SO AS LONG AS HE PROMISE THAT HE'LL BE
WE BOTH WANT, I'M, I'M JOKING HERE.
HE, NO, WE BOTH, HE HAS, HE IS THIS SH THIS REPORT SHOWS THAT SEAN HAS DONE SOME THINGS ALREADY.
IT SHOWS THAT, THAT SEAN HAS, HAS DONE SOME THINGS THAT SEAN RECOGNIZES THE FINE, SOME OF THE FINDINGS THAT, THAT HAVE BEEN IDENTIFIED.
AND HE KNOW THAT WE'VE GOT UNFINISHED WORK TO ADDRESS THOSE.
HE UNDERSTANDS THAT, UH, LEGAL HAS A PIECE OF IT.
UH, COUNCIL HAS A LARGE PIECE OF IT.
CITY MANCHESTER HAS A PIECE OF IT.
BUT WHAT I'M ASKING IS, DO YOU THINK BY JUNE 1ST, SEAN, DO YOU FEEL COMFORTABLE
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THAT YOU CAN BRIEF THIS COMMITTEE OKAY.ON, ON WHERE WE ARE, WHERE WE'RE GOING WITH ALL OF THE PIECES.
IF COUNCIL HAS NOT ACTED, THEN THIS NEEDS TO GO TO COUNCIL OR THE CITY ATTORNEY.
DO YOU FEEL THAT GIVEN THE SCOPE OF THE REPORT, THAT YOU, UH, CAN PROVIDE THIS COMMITTEE WITH AN UPDATE? THAT'S, THAT'S MY QUESTION.
THE, THE SHORT ANSWER IS YES, BUT I'D LIKE TO, TO CLARIFY SOME OF THESE DATES.
UH, THE JANUARY 30TH WAS POLICY PROCEDURES NEED TO BE IN PLACE.
AND THAT'S THE MAJORITY OF WHAT YOU HEARD.
UH, AND THOSE ARE GOING TO BE IN PLACE BY THE END OF JUNE, UH, JANUARY 30TH.
UH, THE FIRST QUARTER, I GAVE MYSELF THE FIRST QUARTER TO WORK WITH BRIAN AND SCOTT ON REVISING THE CITY ORDINANCES.
AND MY, WHAT I PUT ON THERE WAS MY SIDE OF THE WORK.
NOT NECESSARILY, IT WILL BE PRESENTED TO COUNCIL AND COUNCIL WILL DECIDE ON IT, BUT IT WAS, I CAN GET SOME REVISIONS DRAFTED AND GET BEFORE LEGAL SO THAT WE CAN GO THROUGH THEM.
UM, SO THOSE ARE THE TWO MAJOR DATES THERE.
UM, COUNCILMAN WILLIAMS, YOU SPECIFICALLY WANTED TO KNOW ABOUT SOME OF THE MUNICIPAL COURT STUFF.
WELL, THAT'S ALREADY BEEN SOLVED.
UH, THE, AND THOSE PAYMENTS WERE BEING MADE FOR THE FIRST FEW YEARS WITHOUT ANYONE EVEN KNOWING IT.
AND THEN IT CAME TO MY ATTENTION IN 2023, AND WE CREATED A WAY TO MAKE THOSE PAYMENTS GET TRANSFERRED TO OUR BANK ACCOUNT.
BUT WHAT WE WERE, WE HAD A, UH, DEFICIENCY, IF YOU WILL, WAS WE DIDN'T GO IN AND UPDATE THE TICKET TO SHOW THAT WE'D ACCEPTED THE PAYMENT.
AND THOSE WERE THE 78 SHE MENTIONED, UH, EIGHT OF WHICH WERE OUTSTANDING.
AND THOSE EIGHT HAVE ALREADY BEEN RECTIFIED.
SO THE ONLY THING WE NEED TO DO THERE IS PUT IN PLACE AN AUDIT PROCEDURE TO MAKE SURE THAT WE ARE DOING THIS THE RIGHT WAY EVERY MONTH.
AND THAT'LL BE PART OF THE POLICY AND PROCEDURES BY THE END OF JANUARY.
SO, UH, BACK TO THE SHORT ANSWER.
JUNE WOULD BE A GOOD TIME FOR ME TO COME BACK BEFORE YOU AND SAY, THIS IS WHAT HAS HAPPENED WITH EACH OF THESE OPPORTUNITIES.
JUNE 24, 25, UH, JUNE OF 2025.
I THINK IT IMPORTANT, AND WE DIDN'T HAVE THE OPPORTUNITY TO DO THIS YET, BUT I THINK IT IMPORTANT ALSO THAT WE RECOGNIZE THE HISTORY OF THIS PROGRAM AND WHAT IT WAS INTENDED TO DO.
TWO PEOPLE BROUGHT THIS BEFORE US, UH, TO, UH, REVIEW IT AND TO CRITIQUE IT, TO ANALYZE IT.
ONE OF THOSE, OF COURSE, MIKE BETTS, THE OTHER, UH, PREVIOUS COUNCILMAN, UH, ROBERT SMITH.
AND I'M SURE THAT, UH, I DON'T KNOW IF THEY HAD READ IT OR WHAT, BUT IF, IF, BASED ON WHAT I'M SEEING PRESENTLY, VERY GOOD REASON TO DO SO.
HOWEVER, IT'S QUITE OBVIOUS THAT YOU HAVE PUT A LOT OF WORK ALREADY INTO CORRECTING SOME OF THE SITUATIONS, IMPLEMENTING PROCESSES AND PROCEDURES THAT ARE GOING TO ALLOW US TO GO FORWARD AND MEET THOSE CHALLENGES.
AND I THINK ALL THAT THE COUNCILMAN WAS ASKING FOR, OKAY, WE SEE THESE DATES HERE.
THESE DATES, REALLY, THEY WEREN'T UNTIL YOU EXPLAINED, UNTIL YOU EXPLAINED THOSE DATES, WERE SAYING THAT YOU WERE GETTING READY TO HAVE THIS THING DONE BY JUNE, 2024.
THAT BEING THE CASE, AS FAR AS I'M CONCERNED, I THINK THAT, UH, I'M READY TO, AT, AT, TO, TO ACCEPT, I'M READY TO ACCEPT WHAT THE AUDIT COMMITTEE HAS DONE IN THE WAY OF ASKING.
AND I'M ALSO READY TO ACCEPT WHAT YOU'RE WILLING TO DO IN THE WAY OF PROVIDING, BECAUSE I'M THINKING ABOUT IT FROM THE PERSPECTIVE TOO, OF WE'VE GOTTA TAKE IT TO COUNCIL.
AND I'M TRYING TO THINK OF WHAT ARE SOME OF THE QUESTIONS THAT COUNCIL'S GOING TO ANSWER OR ASK AND TRY TO ANSWER THOSE BEFORE WE GET THERE.
SO YOU'RE PRETTY COMFORTABLE WITH THE JUNE, 2025 DATE, CORRECT? I AM COUNCILMAN.
THAT'S WHAT I WAS LOOKING FOR, SEAN.
WELL, THIS HAS BEEN AN IMPRESSIVE AUDIT AND SCOPE AND DETAIL.
UH, WE HAVE ONE OF THE, WE HAVE SOMEBODY THAT'S HAS 115 TICKETS ON ONE VEHICLE.
IN COUNCILMAN WILLIAMS DISTRICT.
I HAD, I HAD A FEELING THAT WAS, I I LOOKED AT NUMBER I I LOOKED AT THOSE AT CHART UP THERE.
AND, UH, THAT WOULD BE LIKE A TEXTBOOK CASE OF A SCOFF LAW.
WOULDN'T IT? AS SOMEONE WHO JUST FLAGRANTLY JUST DOESN'T CARE.
HE DOESN'T, HE'S THAT'S, AND DO HAVE WE BEEN, IM MOBILIZING ANY VEHICLES SO FAR.
WE HAVE, I MOBILIZED THAT ONE IN PARTICULAR ON SEVERAL OCCASIONS.
AND THEN WE'VE LET THAT VEHICLE BACK OUT, UM, AS A HOMELESS PERSON BY CHANCE.
I, UM, I HAVE SOME, SOME THINGS I, I'M, I'M GOING TO APPROACH WITH THAT ONE.
UM, I BECAME AWARE OF THESE VIOLATIONS A WHILE BACK.
UM, WHAT WE'VE BEEN WORKING ON THAT'S PART OF
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THIS AUDIT THOUGH, IS GETTING OUR ORDERS OF LIABILITY IN PLACE.BECAUSE IN REALITY, WE NEED AN ORDER OF LIABILITY TO ENFORCE.
SO WE GOTTA GET THESE MAILED OUT SO THAT WE CAN HAVE THE TEETH BEHIND OUR IMPOUNDMENT OR IMMOBILIZATION.
SO WE ARE AT THAT POINT NOW WHERE I'VE ORDERED THE ENVELOPES AND THE STAMPS, I'VE SET UP THE, THE PROCESS.
I HAD TO MANUALLY CREATE IT BECAUSE OUR VENDOR WOULDN'T, THAT'S GONNA GENERATE THE ORDERS IN AN AUTOMATED FEE FASHION.
BUT WE HAVE TO STUFF ENVELOPES.
AND WE'RE ABOUT TO SEND OUT ABOUT 14,000 OF THESE THAT WILL GET US CAUGHT UP TO WHERE WE CAN TURN AROUND AND IMMOBILIZE OR IMPOUND AND THE ORDER'S THERE.
NOW, THE OTHER PART OF THE AUDIT MENTIONED THAT WE'RE SILENT AS TO THE WHAT HAPPENS WITH THE FEES IF YOU HAVE OUTSTANDING FEES.
WELL, IF YOUR VEHICLE GETS IMMOBILIZED WITH THE BARNACLE MEETING WITH THEM IN JANUARY, NOW THAT OUR ORDERS WILL BE IN PLACE, IF WE GO DOWN THAT ROAD AND USE THE BARNACLE, THEY HAVE TO PAY ALL OUTSTANDING FEES BEFORE IT'S REMOVED.
BUT SOMETHING I'VE LEARNED, AND I'LL, I'LL HOLD BACK TILL, UM, REPORT IN JUNE FOR SURE, IS THERE MAY BE A HEFTY FEE THAT THEY GET A, A DEPOSIT FEE THAT GOES WITH THAT.
AND IT MAY MAKE IT A, A CHALLENGE TO ACTUALLY IMPLEMENT THE BARNACLE.
UM, BUT I'LL REPORT BACK ON THAT IN JUNE.
I'M MEETING WITH THE BARNACLE VENDOR IN JANUARY, AND WE'LL SEE HOW THAT WORKS OUT.
A BARNACLE, THEY'D HAVE TO PAY A $12,000 FINE.
WE HAVE SOME LEGAL WORK TO DO ON THAT.
THERE'S, THERE'S SOME POTENTIAL ISSUES.
I'M NOT SAYING THERE'S CERTAIN, BUT THERE'S SOME POTENTIAL ISSUES WITH HOW WE COLLECT SOME OF THESE FINES, SOME OF THESE BIGGER FINES, BECAUSE COURTS OVER THE LAST 15, 20 YEARS HAVE DISFAVOR ENFORCEMENT OF NOT JUST MINOR CIVIL PENALTIES, BUT MINOR EVEN CRIMINAL PENALTIES AND HOW WE GO ABOUT SEIZING PROPERTY AND THAT KIND OF THING.
SO WE NEED TO MAKE SURE THAT NO, WE DON'T RUN AFOUL OF, UM, PEOPLE'S CONSTITUTIONAL RIGHTS.
'CAUSE I CAN TELL YOU COURTS WILL TEND TO LEAN TOWARD CONSTITUTIONAL RIGHTS IN THESE, SOME OF THESE UNCLEAR AREAS.
AND THIS IS ONE OF THOSE UNCLEAR AREAS.
AT LEAST I CAN'T FIND CASE LAW AT THE MOMENT ON IT.
BUT THERE IS AN ISSUE WITH US TAKING A VEHICLE, IMPOUNDING IT, AND THEN HOLDING IT UNTIL THE ENTIRE AMOUNT OF PAID IS PAID.
UM, UM, WHEN THAT VEHICLE IS WORTH MORE THAN THE FINE ITSELF.
BECAUSE HOW DO YOU GO ABOUT, 'CAUSE IF WE WERE TO TAKE 'EM, THE ORDINANCE ALLOWS US TO TAKE THESE PEOPLE TO THE SCOFF LAWS.
WE COULD FILE A CIVIL ACTION AGAINST THEM TO COLLECT ON, TO COLLECT A JUDGMENT AGAINST THEM.
NOW, WHEN YOU GO ABOUT COLLECTING A JUDGMENT IN CIVIL COURT, THERE ARE CERTAIN ARTICLES, CERTAIN, UM, ITEMS THAT ARE JUDGMENT PROOF IN THE SENSE THAT WE CAN'T SEND A CONSTABLE OUT TO, TO COLLECT JUST ANYTHING TO GET OUR CIVIL JUDGMENT.
THERE'S ONLY CERTAIN ITEMS THAT QUALIFY UNDER LAW.
AND UM, UM, ONE OF THE THINGS THAT'S EXEMPT IS SOMEBODY'S FIRST AUTOMOBILE.
AND THE REASON IS IT MAKES A GOOD POLICY, IF YOU THINK ABOUT THE PUBLIC POLICY IS, WELL, YOU KNOW, WE DON'T WANNA TAKE SOMEBODY'S MEANS OF TRANSPORTATION, WHICH ALLOWS THEM TO GO GET WORK AND EMPLOYMENT TO WHERE THEY COULD AT LEAST PAY OFF THE JUDGMENT.
AND SO THERE'S POLICY REASONS WHY WE PROTECT PEOPLE'S AUTOMOBILES AND SOME OTHER THINGS WITHIN THEIR HOUSES.
AND SO THIS IS NOT A, THIS IS NOT A SIMPLE, UM, FIX BY JUST AMENDING THE ORDINANCE.
THIS IS GONNA TAKE SOME THOUGHT ON BOTH THE COUNCIL AND, UM, UH, WITH MY TEAM AS WELL, ON FIGURING OUT A METHOD.
UM, BUT KEEP IN MIND ALSO, AND I THINK THIS IS SOMETHING THAT'S IMPORTANT THAT WE THINK BACK TO WHEN THIS WAS, THIS PROGRAM WAS FIRST IMPLEMENTED, UH, ALMOST FIVE, WELL, FIVE YEARS AGO HERE IN A COUPLE OF WEEKS.
AND THAT IS THAT WE KNEW THAT WE WERE GONNA BE AT A POINT WHERE WE WOULD HAVE A LOT OF UNPAID FINES BECAUSE THIS PROGRAM WAS NEVER INTENDED TO GENERATE REVENUE.
IT WAS ALWAYS, ALWAYS, MIKE STRESSED IT ON NUMEROUS OCCASIONS TO INDIVIDUAL COUNCIL MEMBERS AND TO THE COUNCIL AS A WHOLE.
UM, HE STRESSED HOW THIS IS NOT A REVENUE GENERATOR.
THIS IS ABOUT COMPLIANCE AND FIXING A PROBLEM THAT WE WERE HAVING AND THAT WE CONTINUE TO HAVE.
AND IN LARGE PART, WE'VE MADE GOOD SUCCESS.
IT'LL ALWAYS BE A PROBLEM BECAUSE GARLAND HAS SMALL STREETS AND WE HAVE A LOT OF PEOPLE WANTING TO PARK ON, ON THE TINY STREETS AND THE LIMITED PARKING SPACES.
UM, BUT THE REASON I SAY THAT AND REMIND EVERYONE THAT THIS IS NOT A REVENUE GENERATOR IS WE KNEW OVER TIME THE AMOUNTS WOULD INCREASE.
JUST LIKE IT HAPPENS AT OUR MUNICIPAL COURT.
OVER TIME, OUR FINES IN MUNICIPAL COURT INCREASE INCREASE UNTIL WE HAVE THIS VERY LARGE POOL OF FINES THAT ARE UNCOLLECTED OVER A PERIOD OF 10 YEARS OR 12 YEARS OR WHATEVER IT MAY BE.
AND THAT'S WHAT'S GONNA HAPPEN WITH THIS.
AND THAT'S ALSO WHAT'S GOING TO HAPPEN WHEN WE GO TO THE ADMINISTRATIVE ENFORCEMENT FOR CODE ENFORCEMENT HERE IN THIS, THE NEXT YEAR WE'RE GONNA SEE THAT SAME PHENOMENON WHERE OVER TIME WE'RE GONNA GET COMPLIANCE, BUT OVER TIME, WE'RE GONNA SEE THESE OUT OUTSTANDING UNPAID FINES, INCREASE, INCREASE, INCREASE UNTIL WE HAVE THIS LARGE NUMBER.
AND SO WE HAVE TO FIGURE OUT A WAY TO, UM, WORK WITH THAT UNDERSTANDING THAT THERE ARE ALWAYS GONNA BE SCOFF LAWS OUT THERE.
AND THERE'S ALWAYS GONNA BE EXCEPTIONS.
AND I LOVE THE TOP 10 UNPAID PARKING TICKETS.
UM, 'CAUSE MAYBE IT'S WORTH SOME THROWING SOME RESOURCES AT THOSE TOP 10, YOU KNOW.
AND, UM, UM, JUST AS AN EXAMPLE, YOU KNOW, JUST TO
[00:55:01]
SHOW THAT WE'RE SERIOUS ABOUT, UM, UM, ENFORCING OUR PROGRAM AND OUR ORDINANCE.AND SO MAYBE THAT'S SOMETHING WE LOOK AT.
BUT AGAIN, THAT'S A RESOURCE ISSUE AND THAT'S SOMETHING THAT WE, THAT MIGHT BE WORTH THROWING SOME RESOURCES AT.
AS WE GO FROM 115 DOWN TO 38 AND THEN DOWN TO 19 FOR VIOLATOR 10.
SO THAT'S A PRETTY WIDE, PRETTY WIDE SWATH, BUT 115, IT'S IMPRESSIVE.
I THINK THOSE NUMBERS EVEN DROPPED MORE AND WE EXPANDED THE LIST.
YEAH, THOSE TOP 10 ARE VERY EXCESSIVE.
UH, BASED ON THE CONVERSATIONS, AND I'VE, I'VE, I GUESS I'VE HAD A LITTLE BIT MORE OPPORTUNITY TO LISTEN AND TO TALK ABOUT THIS.
HAVING TALKED WITH, UM, OUR AUDIT DIRECTOR, OUR CITY MANAGER, AS WELL AS OUR COUNCIL, IT'S OBVIOUS TO ME THAT THIS IS NOT GONNA BE A SHORT TERM FIX.
IT MAY SOUND LIKE IT JUST BASED ON THOSE DATES THAT ARE ON THE AUDIT REPORT, BUT THERE ARE SOME THINGS, AND I THINK WHAT, UH, COUNCILMAN WILLIAMS WAS ALLUDING TO, THAT THERE ARE SOME THINGS THAT YOU'LL BE ABLE TO BRING BACK TO US, RELATIVELY SHORT PERIOD.
BUT THERE ARE SOME THINGS THAT WE'RE JUST GONNA HAVE TO WORK THROUGH.
WE'RE GONNA HAVE TO WORK THROUGH THOSE WITH LEGAL, AND WE'LL HAVE TO WORK THROUGH THOSE WITH COUNSEL ITSELF AND THE MANNER OF, ESPECIALLY SOME OF THE ORDINANCE AND CHANGES ALSO.
AND WITH SYNCHRONIZING HOW THESE TWO ENTITIES, WELL, THERE ARE LIKE TWO PRIMARY ENTITIES HERE THAT NEED TO WORK TOGETHER.
AND IF IN FACT, COLLECTION OR REVENUE WAS NOT EVER THE TRUE INTENT, BUT ENFORCEMENT, THEN IN FACT THE PROGRAM HAS ALREADY BEEN SUCCESSFUL.
WHAT WE NEED AT THIS POINT THOUGH, IS TO GET CLARITY ON SOME OF THE THINGS THAT THE AUDIT COMMITTEE HAS BROUGHT TO OUR ATTENTION.
'CAUSE IF I TAKE THIS TO COUNSEL RIGHT NOW, THEY WOULD CERTAINLY SHOOT IT RIGHT BACK AT US.
SO WITH THAT, UH, COUNSEL, ARE YOU OKAY AT THIS POINT WITH, UH, CHAIRMAN, I MEAN A DIRECTOR? TELL US WHAT ARE YOUR NEXT PROCESSES WITH THIS PARTICULAR AUDIT? OBVIOUSLY, UH, WE'LL BRING AN UPDATE BACK TO THE COMMITTEE IN JUNE.
UM, BUT WE USUALLY, AFTER THE AUDIT COMMITTEE, WE USUALLY PROVIDE COUNCIL A HIGH LEVEL OVERVIEW OF WHAT WE DISCUSSED HERE.
SO I'M PLANNING ON DOING THAT IN JAN, EARLY JANUARY.
AND WE WILL PROVIDE ANY SUPPORT, UH, FROM AN ANALYTICAL PERSPECTIVE OR FROM A DATA REVIEW PERSPECTIVE TO, TO THE CITY MARSHALL'S OFFICE.
AND WE'LL WORK WITH, UH, SEAN AND HIS TEAM, UM, TO, YOU KNOW, TO HELP THEM IMPLEMENT, OF COURSE, AS AN AUDITOR, UM, WE HAVE TO MAINTAIN OUR OBJECTIVITY AND INDEPENDENCE, BUT WE, WE'LL ASSIST HIM IN ANY WAY THAT WE CAN, UM, TO HELP HIM.
AND LIKE I SAID, UM, KNOWING HIM AND MIKE AND BRIAN, UM, THEY'RE VERY PROACTIVE WITH THIS ONE.
AND SEAN HAS ACTUALLY DONE A LOT OF WORK.
HE ALREADY TALKED TO, UM, UM, THE MUNICIPAL COURT PE JARED, AND HE ALREADY SPOKE WITH CUSTOMER SERVICE.
AND SO HE'S ALREADY INITIATING A LOT OF DISCUSSION AND IN IMPLEMENTING A LOT OF THE ADMINISTRATIVE SIDE OF THINGS.
I'M, I'M, I'M GOOD WITH WHAT I'VE HEARD.
AND, UH, UH, IF ANYBODY WANT TO TALK TO THAT, THAT, UH, THAT 100, THAT PERSON, UH, IF I, IF YOU WANT TO TAKE THAT PHONE CALL
I'VE, I'VE, I'VE, I'VE HAD, UH, UH, SO THANK YOU.
SO, BUT I, I'M GOOD WITH, WITH, UH, THE, THE COURSE OF ACTIONS AS PRESCRIBED.
WE JUST WANT TO ACKNOWLEDGE THE WORK THAT YOU'VE DONE AND EXPRESS APPRECIATION TO YOU, UH, OUR SUPPORT CERTAINLY HERE AS YOU GO FORWARD.
UH, WE LOOK FORWARD TO, UH, GIVING THIS REPORT TO, UH, COUNCIL.
AND IN THAT REPORT WE'LL BE TELLING THEM THAT WE'LL BE GETTING A REPORT BACK HERE, UH, IN, IN JUNE.
SO WITH THAT, JUST DON'T LEAD THE CITY.
NO, I APPRECIATE THAT, MR. CHAIR AND, AND THE AUDITORS AND JED, HIS WHOLE TEAM, UH, THE GREAT, GREAT, I MEAN, THEY'VE PROVIDED ME DATA THAT I COULDN'T PULL MY OWN AND IT'S REALLY BEEN ASSISTANCE.
AND I'M GLAD THAT MIKE HAD THE FORETHOUGHT TO REQUEST THIS AUDIT KNOWING THAT THIS WAS A NEW PROGRAM TO GIVE US THE ABILITY TO DO WHAT, WHAT WE'RE DOING RIGHT NOW.
SO I, I, I THANK YOU GUYS, YOUR AUDITORS.
AND THE BEAUTY OF THIS THING IS WE'RE NEVER LOOKING TO FIND BLAME.
WE'RE ALWAYS LOOKING TO MAKE CORRECTIONS TO MAKE IT BETTER FOR US AS A CITY THAT WE MAY BE ABLE TO GO FORWARD WITH THE BEST AS POSSIBLE.
ALRIGHT, THANK YOU SO VERY MUCH FOR THIS AUDIT.
AND, UH, AT THIS POINT, DIRECTOR, WE'RE GONNA TURN IT BACK OVER TO YOU AGAIN FOR OUR NEXT AUDIT.
CHAIRMAN, YOU GAVE ME 20 MINUTES TO CONCLUDE THIS MEETING.
STEVE
NO LEAVE CLAUSE IN THE CONTRACT, RIGHT?
[01:00:01]
CHAIRMAN, THE NEXT AUDIT IS THE PCARD PURCHASE CARD PROGRAM AUDIT.
UH, SO, UM, THIS IS ABOUT, UM, SOME OF YOU'RE AWARE, UH, C HAS IMPLEMENTED A PURCHASE CARD PROGRAM BACK IN 2007.
UM, IT ADDS A LOT OF EFFICIENCY AND, UM, YOU KNOW, NESS TO USE, PROCURE THINGS.
UM, SO I'M NOT GONNA GO THROUGH TOO MUCH DETAIL, BUT WE HAVE THREE OBJECTIVES.
UH, NUMBER ONE MUST EVALUATE THE EFFECTIVENESS OF POLICIES, POLICIES, PROCEDURES, AS WELL AS EFFICIENCY OF THE PROGRAM.
VERIFY PROGRAM POLICIES ARE IN LINE WITH THE INDUSTRY OR GFOA, BEST PRACTICES.
PART TWO WAS TO PERFORM DATA ANA ANALYSIS TO DETECT IRREGULARITIES SUCH AS HIGH OR LOW USAGE, LIMIT INAPPROPRIATE TRANSACTIONS, TERMINATION OF PURCHASE CARDS, AND DO DUPER PARTY VENDORS.
AND LASTLY, WE WANTED TO EVALUATE PAYMENTS MADE TOO, AND REBATE PROVIDED BY JP MORGAN CHASE, WHO IS OUR, UH, UH, OUR BANK, UH, AND PCARD, UM, UH, ADMINISTRATOR FOR ACCURACY, TIMELINESS, AND RECURRING WITH THE GENERAL LEDGER.
UM, SO THIS, A AUDIT IS, IN A WAY, IT'S A CITYWIDE AUDIT, UH, BECAUSE EVERY DEPARTMENT WITHIN THE CITY USES THIS, UH, THIS CREDIT CARD, THIS PROCUREMENT CARD.
UM, I DO WANNA EMPHASIZE A FEW THINGS.
AS, AS YOU'RE AWARE, WE ARE A FAIRLY LARGE ORGANIZATION AND MORE THAN 40 DEPARTMENTS AND ABOUT 2100 EMPLOYEES.
UM, SO AS WE ARE GOING THROUGH SOME OF THIS RECOMMENDATIONS, UH, PLEASE UNDERSTAND THAT, YOU KNOW, INTERNAL CONTROL WEAKNESSES CAN HAPPEN AND, AND WE JUST HAVE TO MITIGATE THOSE, UH, TO IMPLEMENT SOME OF THOSE RECOMMENDATIONS.
I DO WANNA EMPHASIZE THAT, UH, BASED ON JUDGE'S RECOMMENDATION OR HIS DIRECTION, PHIL AND MATT, UH, HAS BEEN PUTTING TOGETHER WITH MISTY AS WELL, UH, POLICY GUIDELINES, UH, TO FURTHER ENHANCE CITY'S INTERNAL CONTROLS.
UH, SO YOU WILL HEAR THAT AS WE GO THROUGH THESE FINDINGS.
AND ALSO PURCHASING STAFF, UH, GARY'S TEAM WAS VERY HELPFUL.
UH, AND AGAIN, I WANNA EMPHASIZE THAT, UH, JUST LIKE WE MENTIONED IN THE PREVIOUS AUDIT, UH, PATRICIA'S GONNA COVER A LOT OF THESE, BUT SHE WAS, UH, A LOT OF THOSE RECOMMENDATIONS.
UM, I FORGOT THE NAMES OF THOSE TWO INDIVIDUALS, BUT THEY IMPLEMENTED THOSE, THEY CORRECTED THOSE AS, AS WE WERE GOING OVER THESE, UH, THESE AUDIT.
PATRICIA DID THE AUDIT AND IT WAS A VERY COMPREHENSIVE AUDIT.
DURING THIS TIME, I BELIEVE WE HAD OVER 90,000 PO TRANSACTIONS DURING THE TIMEFRAME.
OBVIOUSLY WE COULD NOT LOOK AT ALL OF 'EM.
WE DID SOME STATISTICAL SAMPLING AND OBVIOUSLY DID SOME DEEP TESTING ON ABOUT 480, UM, TRANSACTIONS.
BUT WE ALSO DID SOME HIGH LEVEL ANALYSIS AND STUFF LIKE THAT.
UH, ZACH HELPED PATRICIA WITH THOSE ANALYSIS.
SO WITH THAT, UH, OUR AUDIT SCOPE WAS FROM OCTOBER, 2021 THROUGH APRIL 30TH, 2024.
UM, SO PATRICIA'S GONNA GIVE YOU SOME BACKGROUND AND SHE'S GOING TO, HER AND ZACH IS GONNA COVER SOME OF THE OBSERVATIONS.
UH, SO JUST FOR THOSE WHO AREN'T FAMILIAR WITH WHAT A PCARD DID, IS IT IS A CREDIT CARD, A SORT OF A BUSINESS CREDIT CARD FOR THE DEPARTMENTS TO USE FOR AS NEEDED PURCHASES THAT IT COULD BE SERVICES OR GOODS.
UM, AT THE TIME, NOW, I'VE GOT UP ON THE SCREEN SORT OF WHO ALL THE DIFFERENT DEPARTMENTS ARE AND PEOPLE ARE THAT TOUCH THIS PROGRAM.
SO, UH, JP MORGAN CHASE EXTENDED $7 MILLION IN CREDIT TO THE CITY FOR, UH, PURCHASES.
SO PURCHASING, UH, IS THE ONE THAT OVERSEES THE PROGRAM AND POLICIES AND PROCEDURES AND WHATNOT.
AND THEY ESTABLISHED THE SYSTEM CONTROLS THAT JP MORGAN CHASE, UH, OPERATES.
AND THEY RECEIVE AND REVIEW THE, UH, CARDHOLDER APPLICATIONS AND PERFORM THE TRAININGS FOR ALL THE CARDHOLDERS.
AND THEN THEY CANCEL THE CARDS WHEN AN EMPLOYEE TERMINATES OR THINGS OF THAT NATURE, UH, GET LOST OR STOLEN.
THE FINANCE DEPARTMENT, ACTUALLY AS A SEPARATION OF DUTIES, THE FINANCE DEPARTMENT RECEIVES NEW PCARDS AND ISSUES THEM OUT TO THE CARDHOLDER SO THAT A SINGLE DEPARTMENT IS NOT MAKING THE APPLICATION AND RECEIVING THE CARD.
AND THEN THEY PERFORM THE FINAL REVIEW OF THE CODING AND, AND WHATNOT, RECONCILE THAT AT THE END OF THE MONTH AND THEN MAKE THE PAYMENT.
WE GET AN ANNUAL REBATE BASED ON THE SPEND, AND THEY PROCESS THAT REBATE.
THE CARD HOLDER, UH, MANAGEMENT MAKES THE DECISION ON WHO THE CARDHOLDERS ARE.
AND, UH, AS LONG AS THEY FILL OUT THE APPLICATION AND SUBMIT IT, THEY RECEIVE THE, THE PCARD.
SO THEY MAKE THEIR PURCHASES, THEY TURN IN THEIR RECEIPTS
[01:05:01]
TO WHAT IS A DEPARTMENT PURCHASING COORDINATOR, DPC.YOU'LL SEE THAT THROUGHOUT THE REPORT.
UH, THE DPC THEN RECONCILES THOSE RECEIPTS TO THE SYSTEM, RECONCILES THE TRANSACTION DETAIL REPORT AND PROVIDES IT TO MANAGEMENT FOR MANAGEMENT TO REVIEW AND APPROVE.
AND SO YOU'LL SEE EACH ROLL THROUGHOUT HERE.
SO I'M GONNA FLIP BACK TO THE BEGINNING, UH, AND JUST GIVE, UH, JUST HIGH LEVEL.
THE PROCUREMENT DEPARTMENT OVERSEES THE PROGRAM, BUT IT IS IN COOPERATION WITH THE FINANCE DEPARTMENT.
WE ENTERED, UH, THE INTERLOCAL AGREEMENT WITH JP MORGAN CHASE IN 2007 WITH A NUMBER OF OTHER GOVERNMENT AGENCIES.
SO THERE'S MULTIPLE, UH, GOVERNMENT AGENCIES, UH, AS A PART OF THIS INTERLOCAL AGREEMENT.
UM, AND AS I MENTIONED BEFORE, THE ANNUAL REBATE IS RECEIVED, BUT IT'S BASED ON A NUMBER OF FACTORS, WHICH I CAN LET YOU JUST READ THAT PART.
FOR THE LAST THREE FISCAL YEARS, THE CITY HAS SPENT A LITTLE OVER $31 MILLION.
THE SCOPE OF OUR AUDIT IS 31 MONTHS, SO IT'S NOT QUITE THE THREE YEARS.
SO I RAN A TRANSACTION DETAIL REPORT FROM THE JP MORGAN CHASE SYSTEM FOR THAT 31 MONTHS.
AND THE SPEND WAS APPROXIMATELY 26.4 MILLION, AND THERE WERE OVER 97,000 TRANSACTIONS.
SO WE ANALYZED THE PCARD SPEND BY DEPARTMENTS, BY MERCHANTS, AND THEN BY MERCHANT TYPES.
AND YOU CAN SEE THE GRAPHICS THAT ARE UNDERNEATH THERE, AND I'LL LET YOU LOOK AT THOSE.
UM, BUT IT DOES OUTLINE THE TOP 10 DEPARTMENTS, THE TOP 10 MERCHANTS THAT WE SPENT MONEY WITH.
AND THEN THE TOP 10 MERCHANT TYPES AND THE MERCHANT TYPES IS THE CODE THAT JP MORGAN CHASE ASSIGNS THEM.
SO CURRENTLY WE HAVE 2200 REGULAR AND FULL-TIME EMPLOYEES.
AND OF THOSE 1,071 HAVE PCARDS.
THERE ARE SEVERAL AUTHORITATIVE PRONOUNCEMENTS, DIRECTIVES, POLICIES, PROCEDURES, TRAININGS, WHICH ADDRESS THE PCARD PROGRAM.
THERE ARE FIVE PROGRAM ADMINISTRATORS WITHIN THE PROCUREMENT DEPARTMENT, AND ONE WITHIN THE FINANCE DEPARTMENT.
AND ACCORDING TO THE AUTHORITATIVE PRO PRONOUNCEMENTS PROCURE PROCUREMENT, I'M GONNA GET STUMBLING ON THAT MULTIPLE TIMES.
PROCUREMENT RESPONSIBILITIES ARE TO ADMINISTER THE PROGRAM, PROVIDE THE TRAINING, UM, DO MONTHLY REVIEWS OF THE TRANSACTIONS ISSUE AND CANCEL CARDS AS NECESSARY.
AND THEN REPORT, UH, QUESTIONABLE THINGS TO MANAGEMENT.
SO WHEN CARDS ARE ISSUED, PURCHASING ASSIGNED STANDARDIZED CONTROLS TO THE CARDHOLDER, THE STANDARD IS $2,999 FOR A SINGLE PURCHASE AND $5,000 FOR A MONTHLY PURCHASE.
YOU CAN GET MORE THAN THAT WITH MANAGEMENT AND CITY ADMINISTRATION APPROVAL IF IT'S NECESSARY.
SO WE ALSO HAVE, UH, AN OFFICE SUPPLY LOCAL COOPERATIVE AGREEMENT, UM, ALONG WITH OTHER GOVERNMENT AGENCIES TO PURCHASE STANDARD OFFICE SUPPLIES FROM A PREFERRED VENDOR WHO THE, THE VENDOR PLACED THE COMMONLY USED OFFICE SUPPLIES ON CONTRACT WITH THE CITY.
AND WE RECEIVE THOSE ITEMS AT A DISCOUNTED RATE.
ALSO, BASED ON SPEND WITH THIS APPROVED VENDOR, WE RECEIVE A REBATE FROM THEM AS WELL.
FURTHERMORE, WE ESTABLISHED AN AMAZON BUSINESS ACCOUNT.
WE USE THE P CARDS TO GET WHAT WE NEED FROM AMAZON.
UM, AND THOSE THINGS MIGHT BE, UH, ITEMS THAT ARE NOT AVAILABLE THROUGH OUR NORMAL VENDORS OR THROUGH THE PREFERRED OFFICE SUPPLY VENDOR.
SO WITH THE 97,000 UM, TRANSACTIONS, I FIRST WANTED TO UNDERSTAND ALL OF THE AUTHORITATIVE PRONOUNCEMENTS 'CAUSE THERE WERE SO MANY.
UH, AND YOU CAN SEE THAT THERE ARE 11 OF THEM LISTED UNDER AUTHORITATIVE PRONOUNCEMENTS.
AND I COMPARED THOSE AND NOTED SEVERAL INCONSISTENCIES AMONG THE TRAININGS AND THE DOCUMENTS THEMSELVES.
SO WE MADE A RECOMMENDATION TO HAVE ALL AUTHORITATIVE PRONOUNCEMENTS RELATING TO THE EXPENDITURES.
REVIEWED, STREAMLINED, UPDATED TO BE A SINGLE SOURCE OF INFORMATION FOR EASE OF THE USERS MANAGEMENT CONCURRED.
AND CITY ADMINISTRATION IS IN THE PROCESS OF CREATING AND UPDATING THE GARLAND PLAYBOOK, UH, WHICH IS WHAT JUD REFERRED TO PREVIOUSLY.
THE INITIATIVE IS TO CREATE A UNIFORM GUIDANCE AND REDUCE RISKS WORKING WITH DEPARTMENT LEADERS AS WELL AS IA TO OPTIMIZE THE PLAYBOOK.
AND THE IMPLEMENTATION DATE IS THE END OF 2025.
WELL, AND, AND I GUESS I SHOULD ADD, CREATING THE PLAYBOOK, UH, COINCIDES, HOPEFULLY WITH THE NEW SYSTEM, UH, IMPLEMENTATION CALLED WORKDAY.
[01:10:01]
COMING TOGETHER AT THE SAME TIME.SO HOPEFULLY IT'LL HAPPEN IN CONJUNCTION WITH THE WORKDAY ROLLOUT.
ANY QUESTIONS ON THAT ONE? OKAY, SO PROGRAM ADMINISTRATION, UM, AGAIN, OH, YOU'RE GONNA COVER THIS FIRST PARTS, I'LL COVER THE THIRD PART.
LET ANSWER SOMETHING BEFORE WE SURE.
DID YOU TALK GET, I THINK YOU DID.
YOU SAID SOMETHING ABOUT HOW MANY PEOPLE ACTUALLY HAVE THE CARDS.
CAN YOU GO BACK TO THAT AGAIN, PLEASE? THAT 20 OH IN THE BACKGROUND? OH, YEAH.
UH, 2,222 ROUGHLY EMPLOYEES 1,071 CARDS DURING THE SCOPE OF THE AUDIT.
IT GOES UP AND DOWN BASED ON MOVEMENTS OF DEPARTMENTS, TERMINATION, THAT SORT OF THING.
DURING THE COURSE OF THE, OKAY, THAT DOESN'T MEAN THAT 2200 PEOPLE HAVE IT TODAY.
THAT'S HOW MANY EMPLOYEES WE HAVE.
AND AT THE TIME THAT WE DID THE AUDIT, THERE WERE 1,071, UH, ARTICLE PEOPLE WITH CARDS.
DO YOU WANNA START THE PROGRAM ADMIN? I DUNNO, THE BEGINNING.
UH, SO AGAIN, PURCHASING DEPART, UH, PROCUREMENT DEPARTMENT HAS OVERSIGHT OF THE PURCHASING PROGRAM.
AND I APOLOGIZE IF I CALL YOU A PURCHASING.
IT'S IN THE PROCESS OF THEY'VE BEEN TRYING TO TRANSITION, TRANSITION FOR A WHILE.
UM, SO, UH, AGAIN, FIVE ADMINISTRATORS WITH PURCHASING PROCUREMENT, AND ONE IN THE FINANCE DEPARTMENT.
WE COULD NOT LOCATE SPECIFIC CRITERIA FOR OBTAINING A PCARD OTHER THAN MANAGEMENT'S REQUEST.
UM, AND, AND BEING A PART-TIME OR FULL-TIME EMPLOYEE, THE DEPARTMENTS DO STATE THE DEPARTMENTS CAN JUSTIFY THE CARDHOLDER'S NECESSITY ANNUALLY, BUT WE DIDN'T FIND ANY EVIDENCE OF THAT HAPPENING.
SO, JUST TO TAKE A LOOK AT A FEW THINGS, UM, RELATING TO THOSE 2200 EMPLOYEES, UH, AGAIN, OF THOSE 1071 OF THEM HAD BEEN ISSUED PCARDS.
UH, WHENEVER WE TOOK A A LOOK AT THAT, WE ALSO TOOK A LOOK AT THE CREDIT LIMITS ON THOSE CARDS, UM, AGAINST THE AVERAGE MONTHLY SPEND.
AND WE DETERMINED THAT OUR CREDIT EXPOSURE CREDIT LIMIT IS SEVEN TIMES, SORRY, SEVEN TIMES GREATER THAN, UM, WHAT IS SPENT ON AN AVERAGE MONTH.
SO OUR AVERAGE MONTHLY SPEND CITYWIDE IS 850,000 ROUGHLY.
AND OUR, UH, CREDIT, UH, EXPOSURE WOULD BE 6.2 OR $6.3 MILLION.
UH, WE FURTHER BREAK THAT DOWN BY THE TOP OR THE 10 DEPARTMENTS WITH THE HIGHEST COMBINED CREDIT LIMIT.
SO WE CAN SEE WITH DEPARTMENT ONE HAVING, UH, NEARLY 1.5 CREDIT LIMIT 1.5 MILLION IN CREDIT LIMIT AVAILABLE, UH, WITH AN AVERAGE MONTHLY SPEND, UM, BARELY LEAVING UP FROM ZERO.
UM, NEXT, ON THE RIGHT HAND SIDE, YOU'LL SEE IN BLUE, YOU'LL SEE THAT WE ALSO LIST THE NUMBER OF NEWER ACTIVE PCARDS.
THAT JUST MEANS THAT, UH, THE CARD IS IN POSSESSION OR COULD BE PICKED UP BY AN EMPLOYEE.
AND THE DEPARTMENT ONE HAS, UH, CLOSE TO 300.
SO NEXT, AND B, WE TAKE A LOOK AT THE USAGE, UH, DURING THE 31 MONTH SCOPE OF THE AUDIT.
UM, THIS IS, AT ANY POINT DURING THIS AUDIT, UH, 1,508 P CARDS WEREN'T USED AT VARIOUS TIMES.
THIS MEANS THEY WERE IN SOMEONE'S POCKET AVAILABLE TO BE USED AT SOME POINT.
OF THOSE 214 CARDS WERE NOT USED AT ALL.
AND 376 OF THESE CARDS WERE ONLY USED BETWEEN ONE TO 10 TIMES.
SO CARS WITH LITTLE TO NO USAGE ARE AT GREATER RISK FOR BEING STOLEN, UM, AS WELL AS BEING MISUSED.
UH, ADDITIONALLY, EMPLOYEES WHO DO NOT MAKE REGULAR PURCHASES MAY NOT BE AS FAMILIAR WITH PRONOUNCEMENTS OR DOCUMENTATION REQUIREMENTS.
UM, D DEPARTMENTS CAN STILL HAVE THEIR PURCHASING NEEDS MET BY STREAMLINING PURCHASING THROUGH, UH, SELECT, UH, SELECT CARD HOLDERS.
ANY QUESTIONS ON HIS PART BEFORE, BEFORE TWO, BEFORE I MOVE ON? SO, THE AMOUNT OF RISK AT ANY GIVEN TIME, WHAT WAS IT? 6 MILLION THAT, YEAH, THAT'S THE, THAT'S THE, UM, CREDIT LIMIT OR CREDIT EXPOSURE THAT WE COULD POTENTIALLY BE SPENT ON A MONTHLY BASIS.
BUT OF THE 307 OR 214 CARDS WERE NOT USED AT ALL.
SO 590 TOTAL CARDS WERE USED ZERO TO 10 TIMES.
SO ROUGHLY ONE THIRD OF THE CARDS THAT WERE AT ISSUED AT ANY POINT, UH, DURING THE AUDIT, WERE USED 10 OR LESS TIMES.
AND THE CREDIT LIMIT, UH, SO I DON'T HAVE THE DATA FOR THOSE, UH, CARDS SPECIFICALLY.
UM, FOR OVERALL, THE, THE, THE CHART HERE ABOVE IS FOR A POINT IN TIME AT THE END OF THE AUDIT.
[01:15:01]
DATA AS OF, UH, APRIL 30TH.SO IT'S A LITTLE OUTDATED NOW, BUT, UM, THAT'S AS OF THE END OF OUR DATA FOR THE AUDIT.
AND MOST, UH, MOST OF THE CARDHOLDERS HAD A $5,000 PER MONTH LIMIT, SO.
AND YOU DID SAY ONE OF YOU, THAT THE CARDS THAT, THAT ARE IN POCKETS AND THAT WERE NOT USED RUNS A GREATER RISK OF BEING.
CAN YOU RESTATE THAT AND GO THROUGH THAT AGAIN, PLEASE? YES, SIR.
UH, WHAT, WHAT ARE WE'RE SAYING THERE IS, SO CARDS THAT ARE NOT REALLY BEING USED, UH, CARDS THAT WERE NOT BEING SWIPED ON A DAILY, UH, BASIS.
I'M NOT NECESSARILY LOOKING FOR IT IN MY WALLET OR LOOKING FOR IT IN MY DESK EVERY DAY.
IT HAS A RISK OF BEING STOLEN OR MISPLACED AND NOT REALLY BEING LOOKED FOR.
UM, ADDITIONALLY, THE OTHER RISK WE DID STATE IS THAT, UM, PEOPLE WHO USE THEIR CARD ONE OR TWO TIMES AND AS OPPOSED TO EVERY SINGLE DAY, MIGHT NOT BE AS AWARE OF, OH, I NEED TO KEEP THIS RECEIPT, OR, OH, I CAN'T SHOP THERE.
I KNOW I'M NOT, OR THOSE KIND OF, UH, POLICIES.
SO I DON'T WANNA GET AHEAD OF YOU IN THIS REPORT, BUT ARE YOU, ARE YOU GOING TO SAY OF THOSE WHO AREN'T USING THOSE, IS THERE A NEED FOR THEM TO HAVE THOSE? I I, ARE YOU GOING TO BRIDGE THAT? CLARIFY THAT FOR ME.
YES, THERE WILL BE A RECOMMENDATION LATER ON.
I DON'T WANNA GET AHEAD OF YOU.
SO WITH REGARD TO ADMINISTRATIVE OVERSIGHT, UH, THE REVIEWS CURRENTLY ARE OCCURRING AT THE DEPARTMENT LEVEL, AND SAMPLE TRANSACTION REVIEWS WITHIN THE PROCUREMENT DEPARTMENT, UH, CEASED TO OCCUR WHEN ADMINISTRATOR RETIRED IN 2020.
UH, SO TO EXPLAIN THAT A LITTLE BIT, DEPARTMENTS WOULD DO THE REVIEW, BUT PROCUREMENT WOULD AUDIT RANDOM SAMPLES, AND THAT JUST STOPPED IN, IN 2020, IS WHAT I'M TRYING TO SAY.
SAY, UH, SO THEN, CURRENTLY THE CARDHOLDER AND DPC TRAININGS CONSIST OF READING THE AUTHORITATIVE PRONOUNCEMENTS ONLY.
THERE USED TO BE IN-PERSON TRAININGS THAT WERE MANDATORY ON AN ANNUAL BASIS, UH, IN ADDITION TO THE REFRESHERS THAT STOPPED IN 2020, ALSO DUE TO THE PANDEMIC, AND HAS CONTINUED, UH, TO BE JUST READING, UH, AND REVIEWING A POWERPOINT PRESENTATION, UH, SINCE THAT TIME.
SO, UH, I'M NOT GONNA HIT EVERYTHING THAT'S, THAT'S IN THE REPORT, JUST BECAUSE IT WOULD MAYBE TAKE TOO LONG.
SO IF YOU'LL JUST TURN TO NUMBER FIVE.
UM, THERE WAS A LACK OF DOCUMENTATION IN THE SYSTEM FOR DPC AND CARDHOLDER AGREEMENTS, TRAINING, ACKNOWLEDGEMENTS, EMPLOYMENT VERIFICATIONS, UH, AND OTHER DOCUMENTS RELATED TO THE PROGRAM.
SO ONE OF THE THINGS THAT, UH, OCCURS IS WHEN SOMEONE FILLS OUT AN APPLICATION FOR PCARD, THAT PROCUREMENT DEPARTMENT VERIFIES WITH HR THAT IT IS INDEED AN EMPLOYEE, NOT A GHOST EMPLOYEE, THAT SORT OF THING.
SO, SO THERE WERE TIMES WHEN WE COULD NOT FIND THE DOCUMENTATION.
IT, IT COULD HAVE BEEN THERE, BUT ONE OF THE THINGS THAT OCCURRED IN THE PROCUREMENT DEPARTMENT WAS, UM, A LITTLE BIT OF TURNOVER OCCURRED IN A FOUR YEAR SPAN.
AND SO MULTIPLE HANDS TOUCHED MULTIPLE DOCUMENTS.
AND, AND SO NOT SAYING THE DOCUMENTS WEREN'T THERE, THEY JUST COULDN'T BE LOCATED.
UM, ALSO THERE WERE FOUR OCCASIONS IN WHICH SOMEONE BESIDES THE CARD HOLDER OR THE DPC WAS ALLOWED TO PICK UP A P CARD FROM THE FINANCE DEPARTMENT.
UM, BUT THERE WAS NO REASON DOCUMENTED.
THE NOTIFICATION OF CARDHOLDER TERMINATION IS, UH, INTENDED TO OCCUR ON AN AS NEEDED DAILY BASIS IF SOMEONE LEAVES HR WOULD NOTIFY PROCUREMENT, UH, AT THAT TIME.
BUT WE LEARNED THAT HR IS NOTIFYING THEM ONCE EVERY TWO WEEKS.
UH, AND SO SOMETIMES THINGS WOULD GET, YOU KNOW, BEHIND, UH, AS A RESULT OF THAT.
UM, THEN ANOTHER ONE WAS, UH, THERE WERE 64 CARDHOLDERS WITH MONTHLY LIMITS GREATER THAN THE STANDARD 5,000 THAT WE DISCUSSED.
WE PERFORMED AN ANALYSIS OF THE AVERAGE SPEND PER MONTH FOR THOSE PEOPLE, UH, THAT HAD GREATER THAN 5,000 AVERAGE MONTHLY SPEND.
AND THE FIVE THAT YOU SEE IN THE GRID ARE JUST FIVE EXAMPLES OF HAVING A MONTHLY CREDIT LIMIT, AND THEN THE AVERAGE MONTHLY SPEND THAT THEY INCUR DURING THE 31 MONTH SCOPE.
SO ANOTHER 17 CARDHOLDERS HAD AN AVERAGE MONTHLY SPEND THAT WAS, WAS LESS THAN 30%.
UM, SO AGAIN, WE'RE GONNA RECOMMEND REEVALUATING THE NEED FOR HAVING GREATER LIMITS.
SO WHEN, UH, PROCUREMENT ESTABLISHED THE AMAZON BUSINESS
[01:20:01]
ACCOUNT, UM, AND I BELIEVE THAT WAS IN 2020, IF I REMEMBER CORRECTLY, THE BUSINESS ACCOUNT WAS SET UP WITHOUT RESTRICTIONS OR REQUIREMENTS.AND AS A RESULT, UH, SOME THINGS MAYBE BEING PURCHASED, UH, OUT OF A PERSONAL NEED RATHER THAN FUNCTIONALITY.
UH, I DON'T MEAN PERSONAL NEED, THAT THEY JUST WANTED WHAT THEY WANTED, NOT NECESSARILY WHAT WAS FUNCTIONAL.
SO, SO THERE'S A LITTLE PICTURE THERE OF, OF ONE OF THE EXAMPLES THAT WE SAW.
SO, UH, WE RECOMMENDED, UH, THAT ALONG WITH THE IMPLEMENTATION OF THE INTEGRATIVE SOFTWARE PLATFORM WITH INCREASED CONTROLS AND GREATER CAPABILITIES THAT CITY ADMINISTRATION SHOULD REEVALUATE WHETHER CARDHOLDERS REQUIRE A PCARD AND IF THE LIMITS ARE JUSTIFIED, WE ALSO RECOMMEND DEVELOPING CRITERIA TO DETERMINE FUTURE CARD ISSUANCE, PROVIDING TRAININGS IN PERSON MANDATORY TRAININGS, UH, OR IT COULD BE AN ONLINE UPDATED TRAINING, WRITTEN POLICIES AND PROCEDURES, REVIEWING MONTHLY REPORTS FROM THE SYSTEM FOR COMPLIANCE TRACKING THE TRAININGS THROUGH THE CITY'S TRAINING MODULE, REINSTITUTING THE PROCESS OF HR NOTIFYING PROCUREMENT EACH TIME THERE IS A CHANGE IN A CARDHOLDER'S EMPLOYMENT STATUS AND GUIDED BUYING POLICIES OR RULES TO ESTABLISH APPROPRIATE LIMITS FOR AMAZON TO STEER BUYERS TO PRODUCTS, WHICH WOULD PROVIDE THE BEST VALUE FOR THE INTENDED NEED.
MANAGEMENT CONCURRED AND STATED THAT CITY ADMINISTRATION RECOGNIZES THE NEED TO EVALUATE THE NUMBER OF PROCUREMENT CARDS ISSUED WITHIN THE ORGANIZATION, AND REDUCING THE NUMBER OF PCARD WILL ALSO DECREASE THE CITY'S OVERALL AVAILABLE SPENDING LIMIT EFFECTIVE IN JANUARY OF 2025.
THE AUDIT OBSERVATIONS WILL BE ADDRESSED WITH DEPARTMENT DIRECTORS AND ADDITIONAL CONTROL MEASURES WILL BE IMPLEMENTED.
THE NEW SYSTEM BEING IMPLEMENTED WILL INCLUDE A FEATURE OF ALLOWING PURCHASES FROM PREFERRED VENDORS FOR OFFICE SUPPLIES AND OTHER ITEMS. SO IT'LL STREAMLINE THE PROCESS.
UM, ADDITIONALLY, THIS NEW NEW SYSTEM IS CALLED WORKDAY.
IT WILL PROVIDE INSIGHTS INTO SPENDING, UH, RECONCILIATION, CODING, TRACKING OF APPROVALS, REPORTS AND TRAINING.
AND IT WILL AUTOMATE THE TERMINATION WORKFLOWS TO ENSURE THAT PCARDS ARE TIMELY AND PROACTIVE IN, IN THE TERMINATION OF THE CARD ITSELF.
UH, CITY ADMINISTRATION IS GONNA COLLABORATE WITH FINANCE AND PROCUREMENT TO UPDATE THE PCARD POLICIES AS PART OF THE GARLAND PLAYBOOK INITIATIVE THAT WAS DISCUSSED.
AND ALL OF THIS WILL, UH, OCCUR BY THE END OF 2025, WHICH AGAIN, IS IN CONJUNCTION WITH THE WORKDAY ROLLOUT.
ANY QUESTIONS ON THAT ONE? PROCEED.
SO THE A THIRD OPPORTUNITY IS FOR COMPLIANCE AND BEST BUSINESS PRACTICES.
SO THIS IS WHERE WE DID A, A SELECTION OF 0.5% FOR A DETAILED REVIEW OF 485 TRANSACTIONS.
WE REVIEWED RECEIPTS, TRANSACTION DETAIL REPORTS, DPC, RECONCILIATIONS, MANAGEMENT APPROVALS, ET CETERA, TO DETERMINE COMPLIANCE IN GENERAL.
SUFFICIENT DETAILS ARE NOT BEING RECORDED IN THE JPMC SYSTEM, UH, UNDER THE TRANSACTION NOTES SECTION.
AND SO MANY TIMES I COULD NOT MAKE CLEAR DETERMINATIONS BASED ON THE LACK OF INFORMATION IN THE SYSTEM.
THERE WERE 48 PURCHASES, WHICH HAD NO EVIDENCE OF DIRECTOR OR MANAGING DIRECTOR APPROVAL.
AND AGAIN, I'M NOT GONNA GO THROUGH THIS WHOLE LIST, IT WOULD TAKE TOO LONG.
UM, BUT I'LL JUST HIT SOME HIGHLIGHTS.
GIFT CARDS ARE AWARDED TO EMPLOYEES, BUT HAVE NOT BEEN CONSISTENTLY REPORTED TO THE PAYROLL DEPARTMENT FOR TAX PURPOSES.
THERE HAVE BEEN RETIREMENT GIFTS OTHER THAN PLAQUES, WHICH RANGE IN OF VALUE FROM $150 TO $1,875, WHICH DOESN'T COMPLY WITH THE ORDINANCE, UM, OR THE, UH, POLICIES AND PROCEDURES DIRECTIVES.
UM, THERE WERE TWO INSTANCES OF HOTEL LODGING FOR EMPLOYEES WITHIN THE DFW METROPLEX AREA.
FLOWERS HAVE BEEN PURCHASED FOR BIRTHS, BIRTHDAYS, ADMINISTRATIVE PROFESSIONALS DAYS, THINGS OF THAT NATURE.
UM, RECURRING CABLE INTERNET AND CELL PHONE CHARGES ARE PAID BY VARIOUS DEPARTMENTS USING MULTIPLE P CARDS.
UM, THE TOLL CHARGES THAT WE HAVE ON THE CITY VEHICLES IS DECENTRALIZED IN THE CITY IS NOT RECEIVING THE BEST BUSINESS RATES THAT, UH, CAN BE GOTTEN UNIFORM AND CLOTHING IS PURCHASED FOR STAFF WHOSE RESPONSIBILITIES OR ROLES MAY NOT NECESSITATE UNIFORMS AND, UH, EMPLOYEES MAKE PERSONAL OR MADE.
WE STOPPED THAT, MADE PERSONAL PURCHASES THROUGH THE CITY'S AMAZON BUSINESS ACCOUNT
[01:25:01]
USING THEIR OWN CREDIT CARDS IN ORDER TO RECEIVE THE BENEFIT OF BUSINESS PRICING AND FREE SHIPPING.AND AS I MENTIONED, THAT WAS CORRECTED AS SOON AS, UH, IT WAS ADDRESSED WITH ADMINISTRATION.
UM, NUMBER FIVE, WE ANALYZED PURCHASES TO DETERMINE IF POTENTIAL COMPETITIVE BID OPPORTUNITIES EXISTED.
THERE WERE AT LEAST THREE BASED ON THE INFORMATION THAT WE COULD FIND.
THERE WERE AT LEAST THREE OPPORTUNITIES, UH, THAT COULD HAVE BEEN BID OUT, VETERINARY MEDICINE, UNIFORM AND CLOTHING, AND POTENTIALLY THE EMPLOYEE AWARDS AND PLAQUES.
SO SOME DEPARTMENTS ALLOW UNIFORM PURCHASING PURCHASES FROM FOUR STANDARD CLOTHING ITEMS, WHICH MAY OCCUR AT A NUMBER OF RETAIL STORES, EVEN THOUGH THE DEPARTMENT HAS SECURED A CONTRACT WITH AN APPROVED APPAREL VENDOR.
UH, THE CITY DOES NOT CURRENTLY HAVE A CITYWIDE UNIFORM POLICY, ALTHOUGH SOME INDIVIDUAL DEPARTMENTS HAVE DEVELOPED THEIR OWN, THEIR INCONSISTENCIES AMONG THE DIFFERENT DEPARTMENTS, AND THEY DO NOT ADDRESS SUCH THINGS AS DOLLAR LIMITS, NUMBER OF ITEMS, REPLACEMENT CYCLES, AND ELIGIBILITIES.
UH, LOOKING AT NUMBER A, WE IDENTIFIED 13 TRANSACTIONS, WHICH WERE SPLIT OR SEQUENTIAL.
SPLITTING THE PAYMENT INTO TWO TRANSACTIONS GETS THE INDIVIDUAL PUR PURCHASE UNDER THE 29 99 LIMIT, WHICH IS THERE BECAUSE OF THE PROCUREMENT GUIDELINES.
ALTHOUGH THESE PURCHASES WERE EXEMPT FROM COMPETITIVE BIDDING, THEY SHOULD HAVE BEEN EVALUATED BY PROCUREMENT PRIOR TO THE PURCHASE.
THERE WERE THREE INVOICES PAID WITH A PCARD, AS WELL AS AN ACCOUNTS PAYABLE CHECK TOTALING $4,608.
AND WHEN WE BROUGHT IT TO THEIR ATTENTION, ALL WERE REFUNDED.
UH, THERE WERE, THERE ARE INCONSISTENCIES AMONG DEPARTMENTS FOR PURCHASES OF SNACKS, SODAS, WATER, COFFEE, AND OTHER CONSUMABLES.
AND THE DIRECTIVES ARE SILENT ON THIS.
AND THERE ARE INCONSISTENCIES AMONG DEPARTMENTS REGARDING EMPLOYEE APPRECIATION, SPEND AMOUNTS, FREQUENCY, CIRCUMSTANCES, AND TYPES OF REWARDS.
SO OUR RECOMMENDATION IS THAT CITY ADMINISTRATION SHOULD ENSURE IMPORTANT FACTORS ARE ADDRESSED, SUCH AS PRO, PRO PROHIBITED EXPENDITURES, EXCEPTIONS, DOCUMENTATION, MANAGERIAL REVIEW, APPROVAL, AND REPORTING.
UH, SHOULD ALSO CONSIDER IMPLEMENTING MONITORING AND ENFORCEMENT EFFORTS FOR NON-COMPLIANCE.
PERIODICALLY REVIEW TRANSACTIONS TO IDENTIFY PRODUCTS AND SERVICES THAT ARE PURCHASED FREQUENTLY, OR EXCEED BID THRESHOLD REQUIREMENTS.
TO DETERMINE WHETHER COMPETITIVE BIDDING IS REQUIRED, CONSIDER CREATING A CITY BUSINESS ACCOUNT WITH TOLL TAX TO RECEIVE THE BEST RATES AND CENTRALIZING ACCOUNT REVIEW AND PAYMENT PROCESSING, AND ESTABLISH A GUIDELINE FOR EXPENSES.
EXPENSES SUCH AS THE PURCHASE OF UNIFORMS, CONSUMABLES AND EMPLOYEE APPRECIATION.
MANAGEMENT CONCURRED AND STATED THAT CITY ADMINISTRATION IS ACTIVELY ADDRESSING INTERNAL AUDITS CONCERNS THROUGH THE PLAYBOOK INITIATIVE, WHICH WILL UPDATE POLICIES AND TRAINING TO IMPROVE COMPLIANCE AND OPERATIONAL EFFICIENCY.
THE FUTURE BUSINESS, THE FUTURE SYSTEM CAPABILITIES WILL IMPROVE OVER OVERSIGHT AND EFFICIENCY OF RECURRING PAYMENTS THROUGH ACCOUNTS PAYABLE AND THE POTENTIAL CREATION OF A CENTRALIZED CITY BUSINESS.
TOLL TAG ACCOUNT WILL ALSO BE ASSESSED EXPENSES SUCH AS UNIFORMS AND EMPLOYEE APPRECIATION WILL BE REVIEWED, AND IMPLEMENTATION DATE IS END OF 2025.
ANY QUESTIONS ON THAT ONE? CONTINUE.
THE LAST ONE IS SYSTEM FUNCTIONALITY AND EFFICIENCY.
SO THE MAIN GOAL OF HAVING THE PCARD PROGRAM IS FOR EFFICIENCY AND EFFECTIVENESS OF PURCHASING GOODS AND SERVICES.
AND WHEN WE IMPLEMENTED IT IN 2007, IT WAS DECIDED NOT TO UTILIZE THE FULL CAPABILITIES OF THE SYSTEM, WHICH WOULD INCLUDE UPLOADING RECEIPTS, AUTOMATED RECONCILIATION, AND ELECTRONIC APPROVALS.
AND AS A RESULT OF NOT REVISITING THIS, IT HAS CONTINUED TO BE A VERY MANUAL LABOR INTENSIVE PROCESS.
AND AS THE CITY MOVES FORWARD IN IMPLEMENTING THE INTEGRATIVE SOFTWARE PLATFORM, THERE ARE CERTAIN E-PROCUREMENT OPTIONS THAT MAY BENEFIT THE CITY IN FINDING ADDITIONAL EFFICIENCY AND INCORPORATING PROCUREMENT CONTROLS.
SO OUR RECOMMENDATIONS WERE TO IN INTEGRATE THE PCARD PROGRAM WITH THE NEW SOFTWARE PLATFORM BEING IMPLEMENTED AND UTILIZE THE REQUIRED FIELDS AND FULL SYSTEM CAPABILITIES.
NOW, THIS HAS ALREADY BEEN PLANNED.
IT WAS IN THE WORKS, YOU KNOW, WORKDAY IMPLEMENTATION.
SO WE'RE JUST SAYING INCLUDE THAT, YOU KNOW, WITH JPMC MANAGEMENT CONCURRED.
AND THE ACTION PLAN IS THAT THE INTEGRATION OF THE PCARD SYSTEM AND UPDATED PRACTICES HAS BEEN
[01:30:01]
REVIEWED WITH IA AND WILL BE INCORPORATED INTO THE WORKDAY FINANCIAL SYSTEM.CURRENTLY, STAFF IS WORKING CLOSELY WITH JPMC INTEGRATION SPECIALIST AND THE CITY WORKDAY IMPLEMENTATION CONSULTANTS TO DEVELOP AN INTEGRATION THAT ALIGNS WITH OPERATIONAL REQUIREMENTS.
AND THE IMPLEMENTATION DATE IS 2025, END OF 2025.
ANY QUESTIONS ON THAT ONE? THANK YOU.
UM, COMMITTEE, I JUST HAVE ONE QUESTION.
I STEPPED OUT FOR A MINUTE IN IT.
DID YOU, DID YOU BRIDGE THE GAP BETWEEN THOSE THAT HAD THE CARDS THAT SELDOM HAVE EVER USED THEM? YOU HAD A CHART, WE, WE DIDN'T, YOU, YOU AND, AND, UH, AND THE NEED FOR THOSE INDIVIDUALS EVEN GETTING P CARDS AND, AND IS THERE FUTURE ACTIONS TO LOOK AT THAT PIECE? AND, AND IF SO, WOULD YOU COVER THE RECOMMENDATION FOR ME AGAIN, PLEASE? FOR SURE.
UH, SO OUR RECOMMENDATION WAS TO REEVALUATE IF CARDHOLDERS REQUIRE A CARD AND IF THE LIMITS ARE JUSTIFIED, AND DEVELOP A CRITERIA FOR DETERMINING FUTURE CARD ISSUANCE.
MISS, MISS CITY MANAGE, YOU WANNA COMMENT IN ON THAT? PLEASE? YOU HAVE TOO MANY, HOLD ON, HOLD ON.
WE NEED TO REDUCE THE NUMBER OF CARDS.
SO WE'RE IN THE PROCESS OF DOING THAT.
AND, UM, AT THE SAME TIME AS WE ROLL OUT WORKDAY, SO BACK WHEN THE CITY, AND, AND MATT PROBABLY CAN SPEAK TO THIS MORE, BUT BACK WHEN THE CITY TRANSITIONED TO THE P CARD SYSTEM, AND, AND SORRY FOR THE BACKGROUND, THIS IS GONNA BE THE LONG WAY TO GET TO YOUR, TO YOUR ANSWER, BUT, UM, SIMILAR TO WHEN THE CITY TRANSITIONED TO A P CARD SYSTEM, WE'RE GOING THROUGH A MAJOR TRANSITION NOW, WHICH IS MOVING TO WORKDAY.
SO ONCE WE IMPLEMENT WORKDAY, IF YOU CAN THINK ABOUT A WORLD WHERE YOU DON'T NEED A CARD TO BUY STUFF, THAT'S REALLY WHAT WE'RE GETTING TOWARDS SO THAT THERE'S NOT A PHYSICAL CARD NEEDED TO ORDER OFFICE SUPPLIES OR, UM, VEHICLE PARTS OR UNIFORMS OR ANYTHING ELSE.
THE, THE PUNCH OUT SYSTEM, AS THEY CALL IT, AS PART OF WORKDAY, IS GOING TO ALLOW US TO PURCHASE THINGS WITHOUT HAVING A PHYSICAL CARD.
AND SO WE'RE, WE'RE GOING THROUGH A VERY MUCH A, UH, A REGIME CHANGE WHEN IT COMES TO PURCHASING, MUCH LIKE WE DID IN 2007.
AND SO THE, THE EFFICIENCIES THAT COME ALONG WITH THAT, THE, THE RISK REDUCTION THAT COMES ALONG WITH THAT, UM, THAT, THAT'S PART OF WHY WE'RE REALLY PUSHING OUT THE DEADLINES ON A LOT OF THIS IS BECAUSE WORKDAY IS GOING TO REDUCE THE NEED FOR A LOT OF CHANGES.
BUT LONG STORY SHORT, WE DO, WE HAVE WAY TOO MANY CARDS.
THERE'S, THERE'S HIGH CREDIT LIMIT OVERALL FOR THE CITY, AND, AND THAT EXPOSURE'S THERE.
UM, AND WORKDAY'S GONNA TAKE CARE OF MOST OF THAT.
ARE WE GOING TO, UH, ARE WE GONNA DO A COMPREHENSIVE AUDIT? ARE WE GOING TO DO JUST AN UPDATE? HOW ARE YOU LOOKING AT, UH, BRINGING THAT BACK? I THINK, UH, DOING ANOTHER AUDIT WOULD BE BENEFICIAL BECAUSE A LOT OF THESE PROCESSES ARE GOING TO CHANGE WITH THE WORKDAY IMPLEMENTATION.
SO I WOULD SAY, AS JET SAID, IF THE IMPLEMENTATION DATE IS THE END OF 2025, I WOULD LIKE TO GIVE THEM A LITTLE BIT OF TIME TO IMPLEMENT AND FOR PEOPLE TO GO THROUGH THE NEW PROCESS, BECAUSE TRAINING TAKES A LITTLE BIT OF TIME.
SO GIVE THEM MAYBE SIX MONTHS OR A YEAR, THEN WE COME BACK AND DO A BRAND NEW AUDIT, RIGHT.
UM, WITHIN THE WORKDAY SYSTEM.
SO THAT WILL BE MY RECOMMENDATION.
BUT IF FOR SOME REASON IF WORKDAY GETS IMPLEMENTED, LET'S SAY IN JULY OF NEXT YEAR, THEN WE WOULD JUST GO SIX MONTHS FROM NOW OR A YEAR FROM THAT POINT ON.
AND, UH, JU I APOLOGIZE THAT I, I DIDN'T GIVE YOU OPPORTUNITY TO SPEAK ON THAT LAST, UH, AUDIT THAT WE, UH, CAME THROUGH.
UH, I ALWAYS WANT TO HEAR FROM YOU AS IT RELATES TO WHATEVER WE'RE DOING HERE, BECAUSE ULTIMATELY IT ALL FALLS UNDER YOU.
I WOULD'VE JUST MESSED IT UP ANYWAY, SO, VERY GOOD.
BUT, UH, THIS PARTICULAR AUDIT, AGAIN, UH, I THINK THAT YOU'VE DONE AN OUTSTANDING JOB IN IDENTIFYING AREAS THAT, UH,
[01:35:01]
NEED IMPROVEMENT AND, UH, CITY MANAGER, I THINK THAT, UH, YOU'VE IDENTIFIED, UH, ACCURATELY WHAT WE PROBABLY ALL SIT HERE THINKING, MAN, THAT'S TOO MANY CARDS OUT THERE.I MEAN, WE REALLY DO NEED TO, TO DO SOMETHING WITH IT.
SO THAT SHOULD GIVE YOU AMPLE TIME, VERY SUFFICIENT TIME TO WORK THROUGH THIS AND TO BRING IT BACK SUCH THAT THIS IS NEXT AUDIT NOW.
THE LAST AUDIT WAS 2013, SO, UH, NONE OF US, I THINK CAN, UH, BE HELD ACCOUNTABLE FOR VERY MUCH.
IT TOOK PLACE THERE AND THEN, BUT I THINK IN THIS NEXT ONE, UH, WE SHOULD BE ABLE TO, UH, HOLD OURSELVES ACCOUNTABLE AND COME BACK WITH SOMETHING THAT'S GONNA HELP US.
UH, SOMETHING, UH, YOU KEEP TALKING ABOUT THIS WORKDAY ROLLOUT AND I'M JUST KIND OF LIKE, WELL, I DON'T KNOW IF THAT'S COME BEFORE US YET.
CAN YOU JUST VERY QUICKLY, UH, UH, TELL US A LITTLE BIT ABOUT WHAT THAT ENTAILS? EVERYTHING, EVERYTHING.
I MEAN, LITERALLY ANY, ANY DOLLAR THAT MOVES THROUGH THAT COMES INTO THE CITY AND THAT LEAVES THE CITY WILL, WILL MOVE THROUGH WORKDAY.
UM, SO IT IS A, IT'S A, UH, AN ERP OR IT'S A, IT'S A SYSTEM, UH, THAT WILL HANDLE EVERYTHING.
WE, LAST YEAR WE ROLLED OUT, UH, THE HR PAYROLL SIDE OF WORKDAY, AND, UH, RIGHT NOW WE'RE WORKING AND MATT AND HIS TEAM, AND HE CAN SPEAK MORE TO IT, BUT, UH, WORKDAY WILL COVER ABSOLUTELY EVERYTHING ON THE FINANCIAL SIDE FOR THE CITY.
IT'S, I MEAN, IT'S A COMPLETE OVERHAUL OF OUR, OF OUR CURRENT SYSTEM.
MATT, IS THIS SOMETHING YOU, YOU BOUGHT TO US? UH, WE JUST CORRECT.
THIS HAS BEEN SOMETHING THAT WE'VE NEEDED FROM THE FINANCE HR SIDE FOR OVER 10 YEARS.
OUR, OUR PREVIOUS SYSTEMS, UH, OUR PREVIOUS HR PAYROLL SYSTEM, WHICH IS NOW GONE, WAS IMPLEMENTED IN 1997.
OUR, UH, FINANCE SYSTEM WAS IMPLEMENTED IN 1997.
SO WE WERE OPERATING ON VERY OLD OUTDATED SYSTEMS. AND WHEN YOU'RE TALKING ABOUT A CITY THAT HAS, YOU KNOW, OVER $600 MILLION WORTH OF CASH MOVING IN AND OUT PER YEAR, BILLIONS OF DOLLARS WORTH OF ASSETS, WE NEEDED TO MAKE A CHANGE.
AND LUCKILY, THE COUNCIL GAVE US THE AUTHORITY THROUGH THE BUDGET PROCESS SEVERAL YEARS AGO TO ACQUIRE A WORKDAY PRODUCT, WHICH IS A, A CORE SYSTEM THAT WILL INTEGRATE IN THE HR SYSTEM, PAYROLL SYSTEM INTO THE FINANCE SYSTEM.
SO NO LONGER TWO SEPARATE SYSTEMS. AND WITHIN THAT FINANCE SYSTEM, WE WILL HAVE PROCUREMENT, ALL OF OUR ACCOUNTING, ALL OF OUR REPORTING, AND ALSO OUR EXPENSE REPORTS.
AND AT THROUGH THIS, WE'RE GONNA HAVE AMPLE OPPORTUNITY TO SET UP, UM, TECHNOLOGICAL ADVANCED SYSTEMS WITH BETTER INTERNAL CONTROLS.
OUR INTERNAL CONTROLS RIGHT NOW ARE MOSTLY, UH, MANAGEMENT APPROVAL OR AFTER THE FACT ITEMS WITH THIS SYSTEM, WE'LL BE ABLE TO STOP TRANSACTIONS BEFORE THEY OCCUR AND DO MANY OTHER THINGS WITH REPORTING AND ANALYTICS.
AND ONE REQUEST THAT I HAVE FOR THE AUDIT, INTERNAL AUDIT TEAM IS WHEN WE GET INTO TESTING, WHICH TESTING IS GONNA START UP, YOU KNOW, FAIRLY SOON AT BEGINNING OF NEXT YEAR THROUGH MARCH, SPEND SOME TIME WITH THEM AND HAVE THEM HELP TEST TO LOOK AT THESE INTERNAL CONTROLS, PARTICULARLY WHEN IT COMES TO NOT JUST P CARS, BUT OUR EXPENDITURES AND HOW WE'RE, HOW WE'RE, HOW WE HAVE THOSE SET UP.
HAVING A SECOND SET OF EYES LOOK AT THAT WOULD BE, BE VERY BENEFICIAL.
AND, UH, ALSO THERE WILL PROBABLY BE PROTOCOLS AND THEREFORE WHO THEN WOULD HAVE THE ABILITY, UH, TO MAKE THE PURCHASES.
SO, UH, IT SEEMS TO ME THAT, HEY, THAT'S A VERY GOOD SYSTEM TO CHOOSE.
AND, AND JUST TO ECHO WHAT JUDD SAID, HE, HE HIT THE NAIL ON THE HEAD.
THE PCARD PROGRAM IS, IT'S HARD TO THINK ABOUT, BUT WILL PROBABLY SOON BE A VERY OUTDATED PROGRAM.
THERE'S MANY OTHER WAYS, MORE SECURE WAYS TO MAKE PAYMENTS, AND WE'RE EVALUATING ALL THOSE.
UH, THE P CARD IS STILL PROBABLY GOING TO BE USED MOVING FORWARD, UM, BUT WE WILL EVALUATE AND REDUCE THE NUMBER OF TRANSACTIONS GOING THROUGH THOSE.
BUT THERE'S PUNCH OUTS WHERE YOU CAN GET REBATES, THERE'S OTHER TYPES OF MECHANISMS. WE'RE ALSO EVALUATING A DEPARTMENT TYPE CARD FOR THESE LARGE PURCHASES WHERE IT'S JUST ONE SPECIFIC PERSON WHO'S WELL TRAINED TO MAKE ALL THESE PURCHASES.
SO I THINK WE'RE GONNA BE, UH, MUCH BETTER OFF ONCE THIS SYSTEM GETS IN PLACE AND WE CAN GET THE POLICIES TO MIRROR WHAT THIS SYSTEM LOOKS LIKE.
SECOND BALANCE WOULD BE GREAT.
MY MAY, UM, WE HAVE THE, WE HAVE THE PERSON IN HERE WHO KIND OF CAUSED US, I CALLED THE BALL AND STRIKES AND EXTERNAL REPORT, BUT I'D LIKE TO HEAR FROM GARY, UH, YOU, IF ANY THOUGHTS ON WHAT YOU'VE HEARD AND, AND WITH, WITH WHAT JU HAS LAID ON YOU.
AND, AND MATT, I KNOW THIS MAY BE A LITTLE OUT OF THE ORDINARY, BUT, BUT I THINK I, WE, I'D LIKE TO HEAR JUST, JUST HE HARD MAN,
[01:40:01]
UH, AGAIN, I APPRECIATE THE OPPORTUNITY AND I, I DO THINK, UH, JED AND HIS TEAM, FOR ALL THE HARD WORK THAT THEY HAVE PUT INTO THIS AUDIT, IT'S VERY COMPREHENSIVE AND FRANKLY IS LONG OVERDUE.IT'D BEEN, YOU KNOW, SEVERAL YEARS SINCE WE HAD ONE.
SO THERE ARE A LOT OF THINGS THAT HAVE OCCURRED IN THAT, THAT MEANTIME.
SO THEY POINTED OUT SOME VERY, UH, GLARING PITFALLS AND ALL OF THESE, UH, CENTER AROUND POLICY ISSUES.
UH, WE WERE A DECENTRALIZED PROCUREMENT SYSTEM HERE AT THE CITY, AND WE HAVE 40 UNIQUE DEPARTMENTS WITH UNIQUE NEEDS.
AND WHAT WE'RE TRYING TO DO IS TRYING TO, UH, STEER THEM TOWARDS A MORE COMMON, UH, PROCESS AND A MORE COMMON, UM, AS FAR AS LIKE THE, UH, PROCUREMENT OF UNIFORMS WAS A BIG ONE.
UH, JUST TRY TO GET SOME GUIDELINES AND, UH, TO HELP THEM MAKE BETTER INFORMED DECISIONS.
AND JUST THE NUMBER OF P CARDS IS JUST PRETTY STAGGERING.
ABOUT HALF EMPLOYEES HAVE HAVE AN ACTIVE P CARD, AND THAT IS TOO MUCH.
IT'S RECOGNIZED BY MANAGEMENT.
AND SO WE'LL GET CONTROL OF THOSE AND, UM, HAVE THE SYSTEMS IN PLACE THROUGH WORKDAY TO GIVE US THE ANALYTICS, THE VISIBILITY TO MAKE BETTER DECISIONS AND JUST HAVE, UH, YOU KNOW, REDUCED RISK FOR THE CITY.
JUST WANTED TO HEAR FROM YOU,
WELL, PAT, ZACH, OUTSTANDING JOB.
NOW AGAIN TO OUR DIRECTOR, CHAIRMAN, THIS IS GONNA BE OUR LAST ITEM FOR THE AGENDA.
UH, I, I, I ALWAYS LOVE IT WHEN COUNCILMAN WILLIAMS REQUEST FOR AUDIT FOLLOW UP.
ACTUALLY, UH, IF YOU REMEMBER BACK IN 2020, FISCAL YEAR 2023 WHEN I REQUESTED ANY AUDIT REQUEST, COUNCILMAN WILLIAMS, UH, ASKED FOR AN AUDIT OF THE PROCUREMENT PROCESS, UM, THAT ANYTHING BACK THEN, THE COUNCIL'S APPROVAL LIMIT WAS A HUNDRED THOUSAND DOLLARS.
SO YOU WANTED US TO LOOK INTO ITEMS THAT ARE BELOW THAT THRESHOLD.
AND IN APRIL, 2023, WE ISSUED A REPORT.
AND AS PART OF THIS YEAR'S AUDIT PLAN, WHEN I SENT THE EMAIL, COUNCILMAN REQUESTED A FOLLOW UP ON THAT.
AND BASED ON MY DISCUSSION WITH, WITH CHAIRMAN AND FURTHER DISCUSSION WITH J, UH, WE DECIDED THAT IN THIS INSTANCE, IT WILL BE BENEFICIAL FOR MANAGEMENT TO PROVIDE AN UPDATE ON OUR RECOMMENDATIONS.
SO PHIL AND GARY GRACIOUSLY, UH, TOOK THIS CHARGE AND, AND HAVE A REPORT FOR YOU.
UH, WHEN WE DID THIS AUDIT, WE HAD A FEW RECOMMENDATIONS.
ONE OF 'EM WAS TO, AGAIN, WE'RE TALKING ABOUT WORKDAY HERE BACK THEN, WE ALSO, OUR SYSTEMS, WERE NOT TALKING TO EACH.
AND THAT PREVENTED US FROM DOING SOME REPORTING, SOME ANALYTICS, CAPTURING CERTAIN DATA.
SO WE MADE SOME RECOMMENDATIONS BACK THEN.
AND ALSO, UH, WE WANTED TO ENSURE THAT OUR LOCAL BUSINESSES ARE AWARE OF THE OPPORTUNITIES WITHIN THE CITY, UM, ESPECIALLY HISTORICALLY UNDER YOUR LIFE BUSINESSES HUB.
AND SO WE HAD SOME RECOMMENDATIONS FOR THAT.
WE ALSO WANTED TO LOOK AT SOME OF THE CO-OP PURCHASES AND SOME OF THE OPTIONS AVAILABLE.
SO A FILL IN, UH, GARY, LIKE I SAID, THEY WORKED ON THIS AND THEY PUT A POWERPOINT PRESENTATION FOR YOU ALL.
SO WITH THAT, I WILL TURN THOSE, TURN THIS OVER TO THEM.
I DIDN'T, I DIDN'T KNOW YOU WERE GONNA BE THIS QUICK.
YEAH, SO I THINK WITH THE TWO BACK TO BACK, UH, PROCUREMENT AUDITS, THE NEXT ONE IS FREE.
AND AGAIN, THANK YOU FOR THE OPPORTUNITY, UH, WITH THIS, UH, IT WAS A PRETTY SHORT AUDIT, SO IT SHOULD BE A, A FAIRLY, UH, BRIEF RESPONSE, BUT I JUST WANTED TO KIND OF HIGHLIGHT SOME THINGS THAT WE'VE, UH, DONE CURRENTLY AND, AND THE THINGS WE HAVE IN THE PROCESS, WHICH IS WORKDAY.
THEY KIND OF STOLE THE THUNDER ON THAT, BUT WORKDAY, UH, IS GONNA SOLVE ALL OF OUR PROBLEMS, I'M SURE.
AND SO THAT'S, THAT'S WHAT WE'RE ALL HOPEFUL FOR, BUT IT'LL CERTAINLY GIVE US MORE VISIBILITY INTO OUR PROCESSES.
IT'LL GIVE US MORE ANALYTICS TO MAKE GOOD BUSINESS DECISIONS.
AND THOSE THINGS WE'RE MISSING OUR CURRENT, UH, SYSTEMS. SO WE'RE VERY EXCITED ABOUT, ABOUT WORKDAY.
UH, WE'RE IN THE, IN THE PLANNING STAGES RIGHT NOW.
WE'RE IN COUNTLESS MEETINGS, UH, DAILY REALLY FOR HOURS, UH, WITH ALL CITY DEPARTMENTS TO SAY COORDINATED EFFORT BETWEEN FINANCE AND IT AND PROCUREMENT AND BUDGET.
AND WE'RE, UH, MEETING CONSTANTLY TO MAKE SURE WE'RE MEETING ALL THE, THE NEEDS OF THE DEPARTMENTS, MAKE SURE THE COUNTY REPORTING IS GONNA BE OKAY, MAKING SURE THE PROCUREMENT REPORTING IS GONNA BE OKAY.
AND SO WE'RE JUST, UH, CONFIGURING AND TESTING AND RECONFIGURING AT THIS STAGE TO HAVE THAT READY TO ROLL OUT.
UH, CITYWIDE IN, UH, Q3 OF 2025 IS THE GOAL.
UH, ONE OF THE THINGS THAT THE AUDIT POINTED OUT IS THAT, UH, IN OUR CURRENT SYSTEM, WE WEREN'T TRACKING THE METHODS OF PROCUREMENT, LIKE IF IT'S SOLE SOURCE OR COOPERATIVE OR EMERGENCY, UH, THAT THAT DATA WAS MISSING IN THE CURRENT SYSTEM, AND WE'RE HOPING TO IMPLEMENT THAT AS LONG AS OTHER, UM, UH, DIFFERENT, UH, KEY PERFORMANCE INDICATORS IN WITHIN WORKDAY.
BUT IN THE MEANTIME, WE HAVE STARTED TRACKING THAT IN OUR CURRENT CONTRACT LIFECYCLE MANAGEMENT SYSTEM, WHICH IS SMARTSHEET.
SO WE'RE NOW CAPTURING THAT DATA IN SMARTSHEET AND REPORTING ON THAT.
IT'S A LITTLE MORE MANUAL THAN WE WOULD LIKE, BUT IT STILL GETS THE JOB DONE AND GETS THE INFORMATION OUT THERE IN FRONT OF MANAGEMENT.
AND SO WITH THE, THE WORKDAY IMPLEMENTATION,
[01:45:01]
WE'LL HAVE EVEN MORE OPPORTUNITIES TO TRACK AND MEASURE THINGS AND REPORT THOSE UP AGAIN THROUGH MANAGEMENT.AND OF COURSE, I BELIEVE THE, UH, REPORT POINTED OUT THAT WE DO EXCEED THE STATE REQUIREMENT WHEN IT COMES TO REACHING OUT TO THE, THE HUB COMMUNITY.
UH, WE, UH, WE CONTACT EVERY HUB ON THE HUB LIST WITHIN, UH, DALLAS COUNTY, NOT JUST THE TWO THAT ARE REQUIRED BY STATE LAW, AND THEY'RE STILL ACTIVELY DOING THAT.
UH, WE DID START ADVERTISING IN THE GARLAND CITY PRESS, WHICH GOES TO MANY, UH, HOMES AND BUSINESSES THROUGHOUT GARLAND.
UH, WE'VE LONG ADVERTISED IN THE, UH, NORTH DALLAS GAZETTE, WHICH IS A, UH, A BLACK BUSINESS OWNED PUBLICATION WITHIN NORTH DALLAS.
UH, WE MET WITH THE CHAMBER OF COMMERCE.
UH, I DEMONSTRATED THE CENTRALIZED MASTER BIDDERS LIST, WHICH IS WHAT WE UTILIZE TO IDENTIFY HUBS.
AND I, I SHARED THAT YOU CAN RUN THAT BY CITY, SO WE CAN PULL UP ONLY GARLAND VENDORS.
AND SO I'VE MET WITH THE CHAMBER, I'VE, UH, DEMONSTRATED THAT, AND THEY'RE ACTUALLY USING THAT DATA CURRENTLY TO DEVELOP A MARKETING CAMPAIGN TO REACH OUT TO THOSE LOCAL AND HUB VENDORS.
SO WE'RE HOPING THEY'LL HAVE SOME SUCCESS BY DOING THAT.
UH, WE DID PARTICIPATE LAST WEEK IN A CITYWIDE, UH, ACTUALLY MULTI-CITY, UH, MINORITY BUSINESS SEMINAR.
THERE ARE 144 PEOPLE REGISTERED, SO IT'S A LOT OF CONTACT, A LOT OF BUSINESSES TO LEARN HOW TO DO BUSINESS WITH THE CITY HERE.
IF I CAN CHIME IN ON, UH, HUBS, PLEASE.
UM, ONE THING THAT I, I DID WANNA SHARE, AND I THOUGHT IT WOULD BE BENEFICIAL FOR THE, UH, THE COMMITTEE TO, UH, TO HEAR WHEN I FIRST, UM, IT WAS AROUND THE FIRST TIME THAT I, UH, UH, HAD AN, UH, A, A PART OF THE AUDIT, UH, FOR THIS, THIS AUDIT, UH, WAS FAIRLY NEW TO THE CITY.
UH, WENT TO A, UH, A TOWN HALL, UH, FOR THE CITY.
AND ONE OF THE, UH, I'LL SAY ANOTHER, ANOTHER LOCAL GOVERNMENT OFFICIAL, UH, UH, AN ELECTED OFFICIAL, UH, APPROACHED ME AND ASKED ABOUT OUR, UH, HUB PROGRAM AND STATED THAT WE WEREN'T DOING ENOUGH AS A, A CITY FOR OUR HUB PROGRAM.
AND I SHARED THE INFORMATION THAT GARY PROVIDED AS PART OF THE AUDIT.
AND, UH, THEY WERE VERY SURPRISED ON WHAT WE WERE DOING.
AND THEY, WE WERE ACTUALLY EXCEEDING WHAT THEY WERE DOING WITHIN THEIR GOVERNMENTAL ENTITY AS WELL.
SO, JUST WANTED TO SHARE THAT WE, UH, AS GARY SAID, WE EXCEED STATE REQUIREMENTS AND WE ARE ALSO DOING MORE THAN SOME OF OUR OTHER PARTNERS IN OUR AREA AS WELL AS IT RELATES TO, UH, HUB PARTICIPATION.
AND, AND THAT'S A GOOD SEGUE JUST TO POINT OUT THAT LAST YEAR OUR HUB SPEND WAS ABOUT 54 MILLION, UH, DOLLARS.
AND, UH, THE PREVIOUS FISCAL YEAR IS ABOUT $43 MILLION.
SO WE ABOUT 10 MILLION BECAUSE WE HAD SOME NICE CONSTRUCTION PROJECTS THAT CONTRIBUTED TO THAT.
AND, UH, ANOTHER, UH, ISSUE IN THE AUDIT WAS, UH, AS FAR AS THE COOPERATIVE PURCHASING AGREEMENTS, UH, THIS IS A, A TOOL THAT WE USE.
UH, IT'S ALLOWED IN STATE LAW.
IT'S A VERY STREAMLINED AND EFFICIENT WAY OF PURCHASING EVERYTHING.
IT'S NOT FOR EVERYTHING, BUT, UH, MANY GOODS AND SERVICES, UH, CAN BE PROCURED QUICKLY AND EFFICIENTLY THROUGH A PURCHASING COOPERATIVE.
THERE'S AN ANOTHER ONE THAT'S CURRENTLY COMING TO MARKET, UH, AS A, ON THE, THE DEVELOPMENT TEAM FOR THAT ONE.
AND IT GIVES MORE OF A MARKETPLACE, WHICH I THINK THE AUTO IS LOOKING FOR.
SO WE CAN GO TO ONE CENTRAL PLACE AND COMPARE THE VARIOUS COOPERATIVE CONTRACTS AND MAKE SURE WE'RE GETTING THE BEST VALUE FOR THE CITY.
SO WE'LL BE, UH, INVESTING THAT, INVESTIGATING THAT FURTHER AS IT COMES TO, UH, TO FRUITION.
UH, WE BELIEVE WE'VE HAD, UH, ENHANCED, UH, TRANSPARENCY THROUGH TRACKING THE DIFFERENT PURCHASE AWARDS NOW.
SO WE CAN LOOK AT THOSE AND ANALYZE THAT.
ARE WE DOING, YOU KNOW, TOO MANY COOPERATIVES? ARE THERE TOO MANY EMERGENCIES WHERE THE CASE MAY BE? BUT NOW WE HAVE VISIBILITY INTO THAT THROUGH OUR DASHBOARDS.
WE CAN REPORT THAT UP THROUGH MANAGEMENT.
UH, WE'RE REALLY EXCITED ABOUT THE EFFICIENCIES THAT WORKDAY IS GONNA BRING.
THERE ARE A LOT OF REDUNDANT MANUAL, UH, PROCESSES THAT ARE DUE TO SYSTEM LIMITATIONS.
AND SO WITH WORKDAY IMPLEMENTATION, WE'RE REALLY EXCITED ABOUT, UH, JUST STREAMLINING PROCESSES.
IT'S A FULL PROCURE TO PAYMENT SYSTEM, SO EVERYTHING THAT TOUCHES BUDGET, FINANCE AND PROCUREMENT IS GOING TO HAVE, UH, HIGH VISIBILITY.
AND IT'S GOING TO GIVE US THE REPORTING THAT WE NEED TO MAKE A SOUND BUSINESS DECISIONS.
UH, ON THE BUSINESS PRACTICES, WE MENTIONED THE AMAZON BUSINESS, UH, WE DO HAVE WHAT WE CALL A GUIDED PROCUREMENT IN AMAZON.
SO IT WILL ACTUALLY POINT YOU TO MINORITY OWNED BUSINESSES AND LOCAL OWNED BUSINESSES.
SO IF YOU'RE, UH, CLICKING A, A FOLDER OR A STAPLER, IT'LL SAY, HEY, THIS IS A LOCAL BUSINESS.
CONSIDER BUYING THIS FROM A LOCAL BUSINESS.
OR, THIS IS A MINORITY OWNED BUSINESS.
IT'S CALLED BIODIVERSE AND BY LOCAL.
SO THESE ARE TWO GUIDED PURCHASING, UM, FEATURES WE HAVE THROUGH THE AMAZON BUSINESS ACCOUNT.
AGAIN, IF YOU HAVE DATA, IF YOU HAD OF A GOOD DATA, YOU MAKE GOOD DECISIONS.
UH, SO WE'RE LOOKING TO GET THAT AGAIN THROUGH WORKDAY AND, UH, PROMOTING STRONGER LOCAL ECONOMY BY WORKING WITH A CHAMBER TO TRY TO TARGET THOSE LOCAL BUSINESSES.
AND DON'T WANNA SOUND LIKE A BROKEN RECORD, BUT WORKDAY, WORKDAY, WORKDAY,
IT'S A VERY TIME CONSUMING EFFORT WITH, UH, YOU KNOW, ALL THE DEPARTMENTS THAT ARE INVOLVED.
BUT WE'RE COMMITTED TO MAKING THIS, UH, THIS WORK FOR THE CITY AND, AND WE'RE JUST EXCITED ABOUT THE OPPORTUNITIES THAT IT BRINGS.
AND IT'S GONNA HAVE A RIPPLE EFFECT, I BELIEVE, ACROSS EVERY CITY DEPARTMENT.
[01:50:02]
UH, AND AGAIN, WITH, WITH DATA, IF YOU CAN, YOU'LL SEE THE DATA, YOU CAN MAKE SOUND DECISIONS AND, UH, WE USE THAT DATA TO GUIDE OUR PROCUREMENT DECISIONS, MAKE SURE WE'RE DOING THE RIGHT THING FOR THE CITIZENS AND THE, UH, THE TAXPAYERS.UH, AND IN THE, THE HUB OUTREACH, ONE THING THAT WE CAN DO IN WORKDAY THAT WE CAN'T DO THROUGH OUR CURRENT SYSTEM IS WE CAN TRACK HUB CERTIFICATIONS.
AND SO NOW WE CAN ACTUALLY TRACK THE CERTIFICATION AND THE EXPIRATIONS.
WE MAKE SURE THAT THEY STAY CURRENT AND COMPLIANT.
AND THE OTHER THING WE CAN DO IS WE CAN, UH, TRACK BY HUB CATEGORY, WHICH WE COULDN'T DO BEFORE.
SO RIGHT NOW IT'S JUST ONE NUMBER, IT'S JUST A HUB, BUT WE DON'T KNOW IF THEY'RE BLACK, HISPANIC WOMAN OWNER, WHAT THE CASE MAY BE.
SO THIS WILL GIVE MUCH MORE GRANULAR, UM, VIEW INTO THAT SO WE CAN MAKE MORE TARGETED OUTREACHES AND THEN CONTINUOUS, UH, IMPROVEMENT JUST WITH THE, THE PLAYBOOK PROJECT THAT'S COMING ON BOARD.
'CAUSE AS YOU SAW IN THE PREVIOUS AUDIT, THERE ARE, YOU KNOW, DOZENS OF, OF, UH, DIRECTIVES AND POLICIES AND AND PROCEDURES OUT THERE THAT DON'T ALWAYS MESH AND BLEND.
SO WE'RE LOOKING FORWARD TO WORKING WITH THE CITY MANAGEMENT TO GET ALL THOSE ALIGNED WITH THEIR GOALS AND DIRECTIVES AND, UM, JUST, YOU KNOW, KEEP MOVING FORWARD WITH THAT.
AND AGAIN, KIND OF A BRIEF OVER OVERVIEW, BUT I'D LIKE TO JUST OPEN IT UP FOR ANY QUESTIONS OR COMMENTS OR CONCERNS.
AGENT, OH, I'M, I'M PUNCHING THE WRONG BUTTON.
UH, THANK, THANK YOU FOR, FOR THAT OVERVIEW.
UH, GARY, AND SAY AGAIN, WHAT DO YOU THINK THIS WORKDAY THAT'S COMING, HOW'S IT GOING TO IMPROVE THIS PROGRAM FOR YOU? I THINK IT, AT LEAST FROM THE HUB STANDPOINT, YOU KNOW, I THINK WE TALK ABOUT THE EFFICIENCIES.
IT'S GONNA CUT OUT MANUAL PROCESSES, IT'S GONNA CENTRALIZE ALL OF OUR PROCESSES AND ALIGN THOSE.
BUT FROM SPECIFICALLY TO THE HUBS IS HAVING THE, THE, THE CERTIFICATION AVAILABLE SO WE CAN CONTACT THE CERTIFICATION AGENCIES, WE CAN SHARE THAT AMONGST OTHER AGENCIES HAVING THE CLASSIFICATION.
IS IT A HISPANIC BLACK WOMAN OWNED? IF WE'RE LACKING ONE OF THOSE AREAS, WE KNOW WHICH CHAMBERS TO REACH OUT TO.
AND THEN WITH THE LOCAL BUSINESS ASPECT TOO, IT'LL GIVE US A, A WAY TO MEASURE THAT SPEND AND SEE IF WE'RE MISSING OPPORTUNITIES THERE.
BUT THE REST OF IT, JUST THE STREAMLINING THE PROCESSES, CUTTING OUT MANUAL PROCESSES, CUTTING OUT THE MANUAL APPROVALS AND THE MULTIPLE APPROVALS, AND GETTING THINGS EXECUTED IN A MORE TIMELY FASHION, BUT ALSO MORE ACCURATE FASHION.
AND HOW IS YOUR, OUR PARTNERSHIP WITH THE CHAMBER GOING TO INTEGRATE ITSELF INTO THIS WHOLE NEW UNIVERSE, AS THEY CALL IT? HOW, HOW IS THE CHAMBER GOING TO REMAIN A PARTNER IN THIS PROCESS? BUT I CAN SEE US JUST SHARING DATA.
I CAN GET BETTER REPORTING FROM WORKDAY.
I CAN, UH, YOU KNOW, SHARE THAT UP TO THE CHAMBER, LET THEM KNOW WHAT OUR LOCAL BUSINESS SPEND IS, WHICH BUSINESSES THAT WE ARE DOING, UH, BUSINESS WITH, WHICH ONES WE'RE NOT, AND TO SHARE THAT OF THE VISIBILITY WITH THEM SO THEY CAN MAKE AN INFORMED DECISIONS ON THEIR HALF.
WELL, UH, WORKDAY, I MEAN, IF, IF Y'ALL ARE AS, UH, EXCITED ABOUT IT, I'M EXCITED ABOUT IT.
I DON'T KNOW WHAT IT IS REALLY, OTHER THAN IT'S A TREMENDOUS MANAGEMENT ASSET, SO IT SOUNDS LIKE IT'S GONNA BE A GREAT THING TO ROLL OUT AND BE ABLE TO GET MORE INFORMATION AND DATA.
SO, ALRIGHT, LOOK FORWARD TO HEARING HOW IT DOES.
IT'S GOING TO BE TAKING PLACE WITH THIS, UH, NEW SOFTWARE AND I THINK IT'S VERY IMPORTANT THAT EVERYONE HAS OPPORTUNITY TO BE AT THE TABLE AND TO HAVE OPPORTUNITY TO, UH, PARTNER WITH US AS WE GO FORWARD.
THANK YOU SO VERY MUCH FOR, UH, THE UPDATE, UH, WITH THAT.
AND REALLY, I, I'M LOOKING HERE, THERE'S ONE OTHER THING THAT I NEED TO BRING JUST TO MAKE SURE THAT, UH, WE DON'T OVERLOOK IT.
AND THAT WAS ROBERT SMITH, I BELIEVE, WANTED US TO DO SOMETHING WITH THAT FIRST AUDIT, WHICH HAD TO DO WITH 25 STREETS OR ALLEYS.
WE'LL TAKE A LOOK AT THE, CAN YOU MAKE SURE THAT THAT GETS INTO OUR REPORT? YEAH.
SINCE, UH, COUNCILMAN SMITH, UH, GRACIOUSLY REQUESTED THE FIRST AUDIT, UH, THE PARKING ENFORCEMENT AUDIT, HE HAD A SUGGESTION FOR THE COMMITTEE AND THE ADMINISTRATION, AND BASICALLY HE SAID, UM, MAYBE WE SHOULD LOOK INTO THE AREAS WHERE WE HAVE PARKING ISSUES, UM, THE TOP 25 STREETS OR ALLEYS WHERE WE HAVE A LOT OF PARKING ISSUES.
UM, MAYBE THEN FROM A, FROM OUR PERSPECTIVE, WE CAN POTENTIALLY LOOK AND SEE WHAT IS CAUSING SO MANY PARKING ISSUES ON THOSE STREETS.
UM, YOU KNOW, MAYBE THEY DON'T HAVE PAVED PARKING LOTS, I'M NOT SURE.
JUST, JUST TO HAVE A LOOK AT IT AND MAYBE, UH, JET CAN SPEND SOME RESOURCES, UM, SENDING POTENTIALLY NEIGHBORHOOD VITALITY OR SOME OTHER GROUP TO KIND OF STUDY THAT AREA A LITTLE BIT MORE.
[01:55:01]
UM, SO BASICALLY ALL HE WAS, UH, ASKING IS FROM THE CITY STANDPOINT, WE CAN SHOW THAT WE'VE DONE SOMETHING, UM, UM, TO, TO HELP IMPROVE THIS PARKING ISSUE.UH, AND SO THAT WOULD SHOW A GOOD, GOOD WORK FROM, FROM THE CITY SIDE THAT THAT'S NOT GONNA RESOLVE EVERY PROBLEM.
BUT HE JUST WANTED TO, YEAH, UH, HE, HE WANTED TO BE HERE, BUT UNFORTUNATELY HE COULDN'T MAKE IT, UH, FOR THE AUDIT COMMITTEE DUE TO ANOTHER PRIORITY.
SO HE WANTED TO SHARE THAT WITH THE COMMUN WITH THE COMMITTEE.
LET'S JUST MAKE SURE THAT GETS INTO THE RECORD.
UH, WANTED TO MAKE SURE THAT WE ADD THAT.
AND WITH THAT, I'M LOOKING AT THE CLOCK ON THE WALL HERE.
LET ME JUST GO AROUND VERY QUICKLY BEFORE WE, UH, TERMINATE OUR TIME.
MAY I JUST MAKE ONE QUICK ANNOUNCEMENT? SURE.
UH, WELL, I WANNA CONGRATULATE PATRICIA MO, UH, LAST MONTH SHE GOT THE CERTIFIED FRAUD EXAMINER DESIGNATION.
SO JUST WANTED TO CONGRATULATE YOU.
AND AGAIN, UH, VERY GOOD REPORT.
ALRIGHT, SO WITH THAT, UH, COMMITTEE, DOES ANYONE ELSE HAVE ANYTHING, UH, THAT THEY'D LIKE TO SAY BEFORE WE DISMISS? MERRY CHRISTMAS? I, I WANT TO
I DO, I DO WANT TO NOT JUST SAY MERRY CHRISTMAS.
I WANNA SAY TO ALL OF YOU, UH, SITTING HERE IN THIS SEAT, HONESTLY, SOMETIME NATION THAT COMES BEFORE US, IT'S JUST OVERWHELMING AND YOU JUST STOP AND YOU WONDER IN THE WORLD UNTIL WE RUN A CITY WITH SOME OF THE SITUATIONS THAT WE'RE CONFRONTED WITH.
BUT AT THE OTHER END OF THAT, WE'VE BEEN RUNNING A CITY FOR A LONG TIME WITH ALL THE PROBLEMS THAT WE'RE CONFRONTED WITH AND WE'RE GONNA CONTINUE TO DO SO I'M GONNA ASK OF YOU TO DO SOMETHING STARTING RIGHT NOW, AND THAT IS, I'M GONNA ASK OF YOU TO HAVE YOURSELVES A VERY MERRY, MERRY CHRISTMAS.
BE PURPOSEFUL, STARTING RIGHT NOW.
THIS IS MY LAST MEETING FOR THE CITY, FOR THE REST OF THE YEAR.
I DON'T CARE WHAT JU PUTS ON THE CALENDAR.
I'M NOT GOING, OKAY, THIS IS MY LAST ONE, AND I'M GOING TO BEGIN RIGHT NOW.
I'M GONNA BE VERY PURPOSEFUL ABOUT SPENDING TIME WITH MY FAMILY, REACQUAINTING MYSELF.
AND NOW THE TIME TO CALL A CEASEFIRE, JUST CALL A CEASEFIRE BEAT YOU, MAKE THE CHOICE.
CALL A CEASEFIRE ON WHATEVER IT IS THAT'S STRESSING YOU OUT, THE CHANGES THAT WE'VE BEEN DEALING WITH.
GO HOME, SPEND SOME TIME WITH YOUR FAMILY, EAT SOME GOOD FOOD, SMOKE A CIGAR, GET YOU SOME COGNAC.
DO WHATEVER YOU NEED TO DO TO RELAX SUCH THAT WHEN WE COME BACK TO THIS PLACE, WE WERE REFLECTED UPON WHAT WE'RE GONNA DO THIS NEXT YEAR.
AND BY THE WAY, EVEN EXCITING, SOMEBODY SAID, UH, THIS WORKDAY, I HEARD EXCITEMENT IN JUDGE'S VOICE WHEN HE WAS TALKING ABOUT IT, YOU KNOW, AND I'M EXCITED ABOUT WHAT'S HAPPENING IN MY DISTRICT AND CHRIS IS EXCITED.
WE'RE, WE'RE JUST EXCITED ABOUT ALL THAT'S TAKING PLACE IN GARLAND, TEXAS.
THERE ARE SOME BEAUTIFUL THINGS HAPPENING FOR US.
AND LET ME TELL YOU, I DON'T KNOW WHAT THE END'S GOING TO BE, BUT I'M LOOKING FORWARD TO GOING ON TO SEE WHAT THE END IS GOING TO BE.
I THINK GOD, FOR EACH OF YOU, WE COULD NOT DO THIS JOB WITHOUT YOUR SUPPORT.
YOU ARE NOT JUST OUR BACK DOOR, OUR BACK ROOM, YOU ARE OUR LIFELINES.
AND SO WE JUST WANNA SAY THANK YOU SO VERY MUCH FOR ALLOWING US TO SIT HERE IN THIS CHAIR AND DO THE JOB THAT WE DO.
AND AGAIN, HAVE YOURSELVES A MERRY, MERRY CHRISTMAS.
YES, PLEASE DON'T PUT IT ON THE P CARD 3:59 PM AND, AND WE ARE ADJOURNED.
GLAD THAT MADE IT ON THE RECORD.