* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.
          GOOD 
          [00:00:01]
EVENING. 
          HELLO. 
          RIGHT, 
          [ 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 APRIL 8, 2025 2:30 PM]
WE ARE AT 2:35 PM AND WE ARE NOW CONVENING APRIL 8TH MEETING OF THE AUDIT COMMITTEE. 
          WE HAVE PRESENT WITH US THIS EVENING OUR COUNCIL MEMBERS, CHRIS OTT AND BJ WILLIAMS. UH, WE HAVE, UH, A LIST OF STAFF WHO ARE WITH US. 
          I'M GONNA TRY TO CALL SOME NAMES HERE. 
          JUDSON REX, CRYSTAL OWENS, MIKE GETZ, BECKY KING, MATT WATSON, SCOTT BOLLINGER, TONY IRVING. 
          AND TO ALL OF YOU WHOM I DID NOT CALL YOUR NAME, IT'S A MATTER OF THE HEAD AND NOT THE HEART. 
          WE'RE GLAD TO HAVE YOU ALL HERE WITH US THIS EVENING. 
          LET US GO AHEAD AND GET INTO OUR MEETING. 
          THE FIRST ITEM ON OUR MEETING THIS EVENING IS THE APPROVAL OF THE MARCH 25TH, 2025 MINUTES. 
          COUNSEL, IF YOU'VE HAD, UH, COMMITTEE, IF YOU'VE HAD OPPORTUNITY TO REVIEW THE MINUTES, I'LL ENTERTAIN A MOTION. 
          MR. CHAIRMAN? YES, SIR. 
          I'D LIKE TO MAKE A MOTION THAT WE ACCEPT THE MINUTES AS PRESENTED. 
          MOTION SECOND AND A SECOND TO APPROVE. 
          ALL FAVOR? AYE. 
          AYE. 
          AYE. 
          ALL OPPOSED? OKAY. 
          NUMBER TWO ON THE AGENDA, PUBLIC COMMENTS. 
          PERSONS WHO DESIRE TO ADDRESS THE COMMITTEE ON ANY ITEM ON THE AGENDA OR ALLOW THREE MINUTES TO SPEAK TESTIMONY MAY BE HELD UNTIL THE ITEM IS CONSIDERED OR GIVEN AT THE BEGINNING OF COMMITTEE MEETING. 
          MADAM SECRETARY, DO WE HAVE ANY PUBLIC COMMENTS? ARE THERE ANY PUBLIC COMMENTS? ARE THERE ANY PUBLIC COMMENTS? SEEING THAT THERE ARE NONE. 
          LET US MOVE NOW TO ITEM NUMBER THREE. 
          FIRST ITEM ON OUR AGENDA THIS EVENING IS THE WEAVER SINGLE AUDIT REPORT. 
          FOLLOW UP AND WE'LL NOW TURN OUR MEETING OVER TO OUR DIRECTOR, JETSON JOHNSON. 
          CHAIRMAN, GOOD AFTERNOON. 
          GOOD EVENING, SIR. 
          THANK YOU COMMITTEE FOR HAVING US TODAY. 
          UM, UH, THE FIRST ITEM IS TO DISCUSS THE SINGLE AUDIT REPORT THAT WE, UH, THE WEAVER, UM, BRIEFED US TWO WEEKS AGO. 
          I, I KNOW THERE WERE SOME FOLLOW UP QUESTIONS, SO JUST, JUST FOR THE SAKE OF EVERYONE'S MEMORY, UH, SARAH IS GONNA GO OVER THE OBSERVATION THAT THEY HAD, WE HAD AS PART OF THE FINE, UH, AS PART OF THE SINGLE AUDIT. 
          THEN WE'LL ENTERTAIN ANY QUESTIONS AT THAT POINT. 
          SURE. 
          WELL, THANK YOU FOR HAVING ME TODAY. 
          UM, OUR SINGLE AUDIT WAS REPORTED ON ABOUT TWO WEEKS AGO, AND WANTED TO GO THROUGH THE FINDING AGAIN, JUST TO, UM, TO BRIEF EVERYONE. 
          SO IT WAS A KNOWN QUESTION COST FINDING. 
          UM, IT RELATED TO HOW THE HOUSING AUTHORITY IS NOT SUPPOSED TO, UM, APPROVE A UNIT WHEN THE TENANT AND THE LANDLORD OR OWNER ARE RELATED UNLESS THERE'S A DISABILITY AND THERE'S A DIFFERENT FORM THAT GETS FILLED OUT. 
          UM, DURING THE COURSE OF TESTING FOR ELIGIBILITY, IT WAS FOUND THAT THE TENANT AND THE LANDLORD WERE RELATED. 
          SO THAT WAS THE FINDING THAT WE HAD. 
          WE TESTED APPROXIMATELY 40, UM, TRANSACTIONS, AND SO IT WAS ONE OUT OF 40. 
          THE, UM, THE RELATIONSHIP OR UNIT WAS SINCE JUNE, 2018. 
          SO THAT ADDED UP TO APPROXIMATELY $69,000. 
          AND SO ANYTHING OVER 25,000 IS REQUIRED TO BE REPORTED AS A FINDING. 
          AND SO THAT'S, UM, BASICALLY HOW WE GOT HERE WITH THE SINGLE AUDIT REPORT. 
          I THINK THIS WAS A MATTER OF COUNCILMAN WILLIAMS. YOUR QUESTION, YOU'VE ANSWERED, YOU'VE ANSWERED MY QUESTION. 
          OKAY. 
          THERE WAS ACTION TAKEN BY BOTH, BY THE, THE, UH, OWNER, I THINK MM-HMM . 
          PARTY, UH, TO RECIPROCATE. 
          SO HAS THAT BEEN DONE? I I ARE THEY, IS THAT REQUIRED? DID THEY WANNA RE SO COUNCILMAN, UH, AS I UNDERSTOOD, THERE WAS CORRECTIVE ACTION AND THAT ACTION WAS IN PROCESS, OR, YEAH, IF YOU DON'T MIND, BECKY. 
          KING. 
          BECKY, DO YOU MIND ? I JUST, I JUST NEED, NEED TO KNOW WHERE THAT IS. 
          THAT'S ALL. 
          OKAY. 
          MR. SEAN? HELLO? OH, SORRY. 
          UH, HI. 
          I'M STEVE FITCH. 
          I'M THE DIRECTOR FOR, UH, THE HOUSING AGENCY. 
          UM, SO ONCE WE FOUND OUT THAT THE PARTIES WERE IN FACT RELATED, WE IMMEDIATELY MOVED TO NUMBER ONE. 
          WE TERMINATED THE CONTRACT WITH THE, NOT ONLY WITH THE LANDLORD, BUT ALSO WITH THE FAMILY. 
          I HAVE REACHED OUT TO THE HOUSING URBAN DEVELOPMENT TO LET THEM KNOW ABOUT THE ISSUE 
          [00:05:01]
AND SEE WHAT ACTIONS THEY WANTED TO TAKE. 
          AND SO IT'S BEEN REPORTED TO THEIR FRAUD DEPARTMENT. 
          WHAT ACTIONS ARE THE OPTIONS? DO WE KNOW IN THE PAST, AND WE'RE TALKING MORE LIKE 15, 16 YEARS AGO, THE INSPECTOR GENERAL'S OFFICE WOULD THEN LOOK INTO, UH, FILING CHARGES AGAINST THE PARTY, WHICH IN THIS CASE WOULD BE BOTH OF THEM TO PAY BACK THE FEDERAL GOVERNMENT. 
          IT'S NOT GONNA COST US ANY MONEY. 
          IT'S NOT GONNA COST THE CITY ANY MONEY. 
          ARE THERE OTHER OPTIONS THAT THE FEDERAL GOVERNMENT HA HAVE IN THIS CASE? NONE THAT I KNOW OF, SIR. 
          I DON'T KNOW OF ANY THIS, THAT'S, IT WOULD BE UP TO THEM IF THEY WANT TO GO AHEAD AND PROSECUTE THEM. 
          OKAY. 
          SO WE, THE CITY, WE, WE'VE TAKEN EVERY ACTION THAT WE NEEDED TO TAKE, RIGHT? YES, SIR. 
          WE HAVE TAKEN EVERYTHING, WE HAVE, UH, ENDED THE PARTICIPATION OF THE LANDLORD AS WELL AS THE FAMILY. 
          THANK YOU VERY MUCH, SIR. 
          MM-HMM . 
          THANK YOU, MR. CHAIR. 
          THANK YOU THERE BEING NO FURTHER QUESTIONS. 
          WE CAN MOVE ON TO THE NEXT ITEM. 
          OKAY. 
          THE NEXT ITEM, NUMBER B, MUNICIPAL WASTEWATER TREATMENT AGREEMENT. 
          AUDIT IT CHAIR. 
          CHAIRMAN. 
          UM, AS YOU'RE AWARE, THE CITY, UH, A NUMBER OF YEARS AGO ENTERED AGREEMENTS WITH VARIOUS MUNICIPALITIES, UH, AS WELL AS A MUNICIPAL UTILITY DISTRICT. 
          UM, IT'S, AND SOME OF THEM ARE AS FAR AS 50 YEARS BACK, THESE AGREEMENTS. 
          SO WE JUST WANTED TO MAKE SURE, UM, UM, THAT WE LOOK AT THOSE AGREEMENTS AND TO MAKE SURE ALL PARTIES ARE IN COMPLIANCE. 
          MAINLY THERE WERE THREE OBJECTIVES. 
          NUMBER ONE WAS TO DETERMINE IF MONTHLY BILLING IS PERFORMED AND THE MOST CURRENT AND ACCURATE DATA WAS PROPERLY CALCULATED. 
          SECONDLY, WE WANTED TO SEE IF ANNUAL RATE NOTIFICATIONS, BILLING, CUSTOMER PAYMENTS ARE ISSUED AND RECEIVED IN A TIMELY MANNER. 
          AND LASTLY, WE WANTED TO DETERMINE IF PARTIES ARE COMPLIANT WITH THE AGREEMENT TERMS SUCH AS METER CALIBRATION, QUALITY TESTING, AND ORDINANCE REQUIREMENTS. 
          THE SCOPE OF THE AUDIT MAINLY COVERED FROM OCTOBER, 2022 THROUGH NOVEMBER, 2024. 
          THAT'S, THOSE ARE THE DATA THAT WE ACTUALLY REVIEWED. 
          UH, ERIN ACTUALLY DID THIS AUDIT. 
          UM, SHE'S GONNA GO OVER SOME, SOME BACKGROUND INFORMATION. 
          UH, BUT BEFORE THEN, I DO WANNA THANK MICHAEL AND HIS TEAM, UH, ESPECIALLY JAMES, ANDREW AND JOE MARTINEZ. 
          UM, THEY WERE VERY HELPFUL, UH, DURING THIS AUDIT. 
          UM, WE'VE NEVER HAD ANY ISSUES RECEIVING ANY INFORMATION FROM EITHER PARTY. 
          THEY WERE VERY COOPERATIVE, AND SO I REALLY DO WANNA APPRECIATE IT. 
          OF COURSE, CRYSTAL WAS INVOLVED AS WELL. 
          SO I DO WANNA THANK MANAGEMENT FOR WORKING WITH US THROUGHOUT THIS AUDIT. 
          AND, AND IT WAS, IT WAS, IT WAS VERY COLLABORATIVE. 
          WITH THAT, UM, ERIN, ERIN LED THE AUDIT AND SHE'S GONNA GO OVER SOME DETAILS AND SHE'S GONNA KIND OF WALK THROUGH SOME OF THE OBSERVATION WE HAVE. 
          UM, SO WITH THAT, I'LL TURN THIS OVER TO YOU. 
          SO, UH, REGARDING THE OBJECTIVES, GENERALLY METER READING DATA USED FOR BILLING WAS FOUND TO BE ACCURATE, AND MOST AGREEMENT REQUIREMENTS ARE BEING MET BY THE PARTIES WITH SOME EXCEPTIONS DESCRIBED IN THIS REPORT. 
          CUSTOMERS TYPICALLY PAY OFF THEIR BALANCES. 
          SEGREGATION OF DUTIES EXIST BETWEEN THE SERVICE PROVIDER WASTEWATER AND THE PAYMENT PROCESSING SERVICE, CUSTOMER SERVICE. 
          SO, MOVING TO BACKGROUND, UH, GARLAND'S WASTEWATER DEPARTMENT MANAGES TWO WASTEWATER TREATMENT PLANTS, AND TOGETHER THESE PLANTS TREAT THE ENTIRETY OF THE CITIES OF GARLAND, SAXE, ETTE AND DALLAS COUNTY MU, UH, MUNICIPAL UTILITY DISTRICT NUMBER FOUR. 
          AND THE PLANTS ALSO TREAT A PORTION OF DALLAS AND RICHARDSON AND SUNNYVILLE AS WELL. 
          SO THE TABLE I HAVE THERE BELOW IS A LIST OF ALL THE AGREEMENTS THAT WE HAVE WITH THESE CITIES TO PROVIDE WASTEWATER TREATMENT SERVICES. 
          UM, DALLAS AND RICHARDSON ARE THE OLDEST AND HAVE THE LONGEST TERM. 
          SO THOSE WERE EXECUTED IN 1977. 
          THEY'RE COME COMING UP FOR, UM, EXPIRATION IN 2027, UH, WITH A 50 YEAR TERM. 
          THE REST OF THEM, UH, SUNNYVALE, SAXE, UH, THE MUD AND ROULETTE WERE AROUND 2017 TO 2021, UM, IN THEIR 20 YEAR TERM AGREEMENTS. 
          THE PIE GRAPHS BELOW, UH, JUST SHOW THE OVERALL GALLONS DISCHARGED BY CITY AS WELL AS THE PAYMENTS RECEIVED OVER THE SCOPE OF THE AUDIT. 
          SO THAT'S OCTOBER, 2022 TO NOVEMBER, 2024. 
          UM, IT'S OVER 9.6 BILLION GALLONS TREATED, AND $28 MILLION IN PAYMENTS RECEIVED. 
          SO EACH MUNICIPAL CUSTOMER SENDS WASTEWATER FROM THEIR RESPECTIVE LOCAL SYSTEM TO GARLAND'S SYSTEM AT A POINT OF ENTRY. 
          AND YOU'LL HEAR ME SAY THAT 
          [00:10:01]
A FEW TIMES. 
          UM, THERE IS A RATE THAT'S APPROVED BY COUNCIL, UH, A MONETARY RATE THAT'S APPLIED. 
          EVERY 1000 GALLONS OF DISCHARGED AT THAT POINT OF ENTRY, THAT SHOULD BE MEASURED, AND IT'S BILLED TO EACH CUSTOMER MONTHLY. 
          UH, THIS RATE IS BASED ON SEVERAL FACTORS, UM, BUT ULTIMATELY IT'S, UH, SET TO RECOVER THE COST OF THE TREATMENT SERVICES. 
          A PROFESSIONAL THIRD PARTY CONSULTANT IS HIRED FOR A COST OF SERVICE RATE STUDY ANALYSIS TO DETERMINE THIS RATE EVERY YEAR. 
          GENERALLY, AND IDEALLY, EACH POINT OF ENTRY IS METERED FOR ACCURACY, AND THESE METERS ARE MAINTAINED, RECORDED, AND CALIBRATED BY GARLAND OR AGENTS OF GARLAND METER READINGS ARE REPORTED TO THE WASTEWATER DEPARTMENT'S FINANCIAL ADMINISTRATOR, WHO THEN COMPILES THE CONSUMPTION DATA BEFORE SUBMITTING IT TO CUSTOMER SERVICE DEPARTMENT TO PUT IT IN THE BILLING SYSTEM. 
          WASTEWATER POINTS OF ENTRY ARE SAMPLED EACH MONTH TO DETERMINE THE STRENGTH OF THE WATER MEASUREMENTS FOR BIOCHEMICAL OXYGEN DEMAND. 
          AND TOTAL SUSPENDED SOLIDS ARE USED TO DETERMINE THE LEVEL OF TREATMENT REQUIRED. 
          IF THESE, UH, MAXIMUMS ARE EXCEEDED. 
          FOR THOSE TWO MEASUREMENTS, SURCHARGES CAN BE APPLIED. 
          THE DEPARTMENT IMPLEMENTS A FEDERALLY REQUIRED INDUSTRIAL PRE-TREATMENT PROGRAM, WHICH IS UTILIZED TO PROTECT THE CITY'S WASTEWATER TREATMENT PLANTS, PUBLIC HEALTH AND WASTEWATER QUALITY BY CONTROLLING POLLUTANTS FROM INDUSTRIAL AND COMMERCIAL SOURCES. 
          THE PROGRAM CONSISTING OF SEVEN EMPLOYEES IS RESPONSIBLE FOR ENSURING THE CITY'S COMPLIANCE WITH THE WASTEWATER DISCHARGE REGULATIONS OF THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY AND ENVIRONMENTAL PROTECTION AGENCY. 
          THEY ACCOMPLISHED THIS BY WORKING CLOSELY WITH THE MUNICIPAL CUSTOMERS AND INDUSTRIAL USERS TO CONDUCT OVER 400 INSPECTIONS EACH YEAR, PROVIDING GUIDANCE FOR COMPLYING WITH THE STATE AND FEDERAL STANDARDS, AND ENFORCING GARLAND'S INDUSTRIAL USER PERMIT REGULATIONS THROUGH CITATIONS. 
          I, SO STARTING WITH THE FIRST FINDING, UM, RICHARDSON POINT OF ENTRY IS UNMETERED AND USING A FLOW RATE FROM 1995 STUDY. 
          THE CITY OF RICHARDSON'S CURRENT AGREEMENT WAS INITIATED IN 1977, AND IT'LL EXPIRE IN 2027. 
          UH, THIS AGREEMENT REQUIRES RICHARDSON TO INSTALL, INSTALL A METER THAT CONTINUOUSLY MEASURES THE WASTEWATER DISCHARGE. 
          UH, HOWEVER, SINCE THEN, NO METER HAS BEEN INSTALLED AND USED TO DETERMINE THE DISCHARGE WASTEWATER BEING TREATED BY GARLAND'S TREATMENT PLANTS. 
          UM, ALTERNATIVELY, A PROFESSIONAL FLOW RATE STUDY HAS BEEN CONDUCTED, UH, THE MOST RECENT BEING 19 95, 19 99, AND 2009, ALL OF WHICH SHOWED A RELATIVELY CONSISTENT FLOW RATE. 
          SO THE RATE FROM 1995 HAS BEEN CONTINUED TO BE USED. 
          UM, THIS COULD RESULT IN OVERCHARGING OR UNDERCHARGING FOR WASTEWATER TREATMENT SERVICES. 
          NOTE, RA UH, RICHARDSON'S MONTHLY BILL RANGES FROM 227,000 TO $274,000. 
          YOU SEE THE, UH, THE PATTERN OF FLOW RATE USAGE THERE. 
          THAT'S NOT THE ACTUAL FLOW RATE. 
          WE DON'T KNOW IT. 
          THAT'S JUST WHAT OUR, THE CONSULTANT DETERMINED WOULD BE EVERY MONTH, AND THAT'S WHAT WE'RE USING TO BILL. 
          SO, UM, PER COSTAR, WHICH IS A COMMERCIAL PROPERTY REAL ESTATE DATABASE, 30 NEW COMMERCIAL INSTALLATIONS WERE DEVELOPED IN THE PORTION OF RICHARDSON THAT'S BEING TREATED BY THE WASTEWATER PLANT SINCE 2009. 
          THIS INCLUDES TWO APARTMENT BUILDINGS WITH A TOTAL OF 800, 810 BEDROOMS, AND IT'S OVER 2.1 MILLION SQUARE FEET OF BUILDING AREA. 
          AND THAT'S JUST A MORE DETAILED TABLE THERE WITH THE GROWTH SINCE 2009. 
          SO OUR RECOMMENDATION IS THAT MANAGEMENT COORDINATE WITH RICHARDSON TO INSTALL A METER IF FEASIBLE, OR HAVE A FLOW RATE STUDY PERFORMED TO ACCURATELY BILL WASTEWATER TREATED MANAGEMENT CONCURS WITH THE ACTION PLAN. 
          THE MAIN REASON FOR THE LACK OF METER MEASURING RICHARDSON WASTEWATER DISCHARGE IS THAT GARLAND COLLECTION MAIN MAIN'S DISCHARGE INTO RICHARDSON COLLECTION MAINES BEFORE ULTIMATELY COMING BACK INTO GARLAND'S COLLECTION SYSTEM TO BE TRANSPORTED TO OUR DUCK CREEK WASTEWATER TREATMENT PLANT. 
          GARLAND, UH, WATER UTILITIES IS EXPLORING TWO OPTIONS TO ADDRESS THIS ISSUE. 
          THE FIRST IS FEASIBILITY ANALYSIS AND PRELIMINARY ENGINEERING DESIGN TO SEPARATE GARLAND AND RICHARDSON WASTEWATER COLLECTION MAINS ALONG JUPITER ROAD. 
          AND TWO RECOMMENDATIONS FROM OUR THIRD PARTY METERING SERVICE TO INSTALL AT LEAST FOUR SEWER FLOW METERS TO SOLELY MEASURE RICHARDSON'S DISCHARGE. 
          IF NEITHER OF THESE OPTIONS ARE FEASIBLE OR COST-EFFECTIVE, ANOTHER PROFESSIONAL FLOW OF STUDY WILL BE INITIATED. 
          UM, IMPLEMENTATION DATE. 
          A THIRD PARTY METER SERVICE EVALUATED THE LOCATIONS FOR RICHARDSON ON MARCH 26TH THIS YEAR. 
          EVALUATION OF THE FEASIBILITY OF REROUTING GARLAND SUE REMAINS IS ONGOING. 
          SECOND, FINDING LATE PAYMENT PENALTIES AREN'T BEING ASSESSED. 
          SO MUNICIPAL WASTEWATER CUSTOMERS ARE BILLED EVERY MONTH FOR THEIR CONSUMPTION AND THEIR PAYMENTS ARE DUE WITHIN 20 DAYS OF THE BILLING DATE. 
          PER THE CITY'S ORDINANCES. 
          BILLS ARE DUE AND PAYABLE AND BECOME PAST DUE, IF NOT PAID WITHIN 20 DAYS. 
          UM, IF PAYMENTS NOT RECEIVED BY 24 DAYS, THERE'S A LATE UH, FEE. 
          THE BILL STATEMENTS THEMSELVES INCLUDE, UM, A VERBIAGE ON THERE THAT THAT INDICATES A 5% LATE FEE WILL BE ASSESSED ON ANY UNPAID BALANCE. 
          AND THEN THE AGREEMENTS THAT I MENTIONED IN THE BACKGROUND, UM, HAVE SOME VERBIAGE. 
          SO, RETTES AGREEMENT STATES THAT INTEREST WILL ACCRUE ON UNPAID CHARGES AT THE RATES, UH, SPECIFIED 
          [00:15:01]
IN THE TEXAS GOVERNMENT CODE. 
          SAX E'S AGREEMENT MIRRORS RETTES VERBIAGE. 
          UM, HOWEVER, SUNNYVALE'S SAYS THE LOWER OF 18% ARE MAX RATE ALLOWED, AND THE MUDS, UM, STATES THE LOWER OF 10% ARE MAX MAX RATE ALLOWED. 
          AND THEN THE DALLAS AND RICHARDSON AGREEMENTS HAVE NO MENTION OF LATE PENALTIES. 
          SO WE SAMPLED 48 OF 150 BILLS OVER THE AUDIT SCOPE PROPORTIONALLY BY EACH MUNICIPAL CUSTOMER AND RANDOMLY BY A MONTH. 
          UM, OF OUR SAMPLES, 12 WERE PAID BETWEEN SEVEN AND 70 DAYS AFTER THEY WERE DUE. 
          OF THOSE 11 WERE NOT CHARGED. 
          LATE PENALTIES RESULTING IN A LOSS OF $168,000 IF YOU GO BY THE 5% FEE. 
          AND THAT, UM, THOSE LATE CHARGES ARE SHOWED, UM, IN THAT TABLE BELOW. 
          SO THIS IS BECAUSE FOUR OF THE SIX MUNICIPAL CUSTOMERS, UH, RALLY AT RICHARDSON, DALLAS AND SAXE ARE DESIGNATED AS EXEMPT FROM LATE PENALTIES IN THE UTILITY BILLING SYSTEM. 
          AND IT'S UNCLEAR WHY THESE CUSTOMERS WERE GRANTED THAT EXEMPTION. 
          THE SECOND PART OF THIS FINDING HAS TO DO WITH THE SECURITY FUNDS. 
          SO PER THE MUDS AGREEMENT UPON OCCURRENCE OF CUSTOMER'S FIRST FAILURE TO PAY ANY AMOUNT BILLED FOR SERVICE OF THIS CONTRACT, WHICH AMOUNT REMAINS UNPAID FOR MORE THAN 60 DAYS, CUSTOMER AGREES TO ESTABLISH A SECURITY FUND. 
          IT'S BASICALLY A FUND SO THAT GARLAND CAN PAY THEIR LATE BILLS, AND THEY'RE SUPPOSED TO KEEP IT UP, UM, THROUGHOUT THE CONTRACT. 
          SO ALL THE OTHER AGREEMENTS EXCEPT RICHARDSON AND DALLAS, ALSO REQUIRE SECURITY FUND DEPOSIT FOR PAYMENTS MADE AFTER 60 DAYS. 
          UM, AND THERE'S SOME, UH, DIFFERENCES IN HOW THEY AVERAGE THAT AND CALCULATE IT, BUT THE REST DO HAVE IT EXCEPT DALLAS AND RICHARDSON. 
          UM, AND THEN JUST TO NOTE, ONE LATE PAYMENT EXCEEDING 60 DAYS WAS IDENTIFIED FOR DALLAS COUNTY MUD. 
          UM, THEY, UH, A LATE FEE WAS ASSESSED AND PAID, BUT THEY DIDN'T SET UP A SECURITY FUND. 
          SO THAT'S THAT SECOND PART OF THE FINDING AND NOTE, RICHARDSON ALSO HAD ONE PAYMENT OVER 60 DAYS LATE, BUT THEY DON'T HAVE ANYTHING ABOUT A SECURITY FUND IN THEIR AGREEMENT. 
          SO MANAGEMENT, OUR RECOMMENDATIONS ARE THAT MANAGING WITH THE CITY ATTORNEY'S OFFICE TO DETERMINE IF CITY ORDINANCES CAN BE APPLIED TO ASSESS LATE FEESS FOR DALLAS AND RICHARDSON. 
          COORDINATE WITH THE CUSTOMER SERVICE DEPARTMENT TO REMOVE THE LATE FEE EXEMPTIONS FOR R AND SAXE AND THE UTILITIES, UTILITIES BILLING SYSTEM. 
          PERIODICALLY AUDIT CUSTOMER BILLS, TIMELINESS AND CONFIGURATIONS IN THE UTILITIES BILLING SYSTEM. 
          CONSIDER AMENDING THE AGREEMENTS TO REFER TO THE CITY ORDINANCES FOR LATE PAYMENT PENALTY ASSESSMENT. 
          CONSIDER AMENDING OLDER AGREEMENTS TO INCLUDE THE SECURITY FUND STIPULATION AND ENFORCE ALL CUSTOMERS AS NEEDED. 
          MANAGEMENT CONCURS ACTION PLAN. 
          SINCE DALLAS AND RICHARDSON CONTRACTS MAKE NO MENTION OF LATE FEES, UH, GARLAND WATER UTILITIES STAFF WILL REQUEST THE CITY ATTORNEY'S OPINION ON CHARGING DALLAS AND RICHARDSON LATE FEES. 
          AS SPECIFIED IN THE CODE OF ORDINANCES, STAFF WILL COORDINATE WITH THE CUSTOMER SERVICE DEPARTMENT TO REMOVE THE LATE FEE EXEMPTION FROM RAL AND SAX E ACCOUNTS AND UTILITY BILLING SYSTEM. 
          SINCE THE CUSTOMER SERVICE DEPARTMENT HAS THE CAPABILITY OF MONITORING LATE PAYMENTS, GW STAFF WILL REQUEST THAT CUSTOMER SERVICE NOTIFY THE WATER UTILITIES FINANCIAL ADMINISTRATOR. 
          WHEN THE WHOLESALE CUSTOMER CITIES BILLS ARE PASSED, DUE STAFF WILL REQUEST THE CITY ATTORNEY'S RECOMMENDATION ON LATE FEE PENALTY ASSESSMENT FOR THE CUSTOMERS WHOSE CONTRACT DEFINED LATE PAYMENT CONDITIONS. 
          THE CONTRACTS WITH DALLAS AND RICHARDSON WILL BE RENEGOTIATED OVER THE NEXT TWO YEARS. 
          AND LATE FEE, LATE FEE TERMS WILL BE A POINT OF DISCUSSION. 
          THE CONTRACTS WITH DALLAS AND RICHARDSON WILL BE RENEGOTIATE, RENEGOTIATED OVER THE NEXT TWO YEARS. 
          AND SECURITY FUND STIPULATIONS WILL BE A POINT OF DISCUSSION. 
          UM, IMPLEMENTATION DATE IS SEPTEMBER 30TH, 2025 FOR ACTION PLANS ONE THROUGH FOUR. 
          AND THEN NUMBER FIVE IS ONGOING. 
          NUMBER THREE, SURCHARGES ARE NOT BEING ASSESSED FOR EXCESS WASTEWATER STRENGTH, WASTEWATER STRENGTH, AND IMPORTANT MEASUREMENT FOR CONSIDERING THE LEVEL OF TREATMENT REQUIRED TO MEET REGULATIONS. 
          UM, I MENTIONED BEFORE, THIS IS BOD AND TSS, UM, UNDERSTANDING THOSE LEVELS AND THEREFORE THE REQUIRED TREATMENT ALLOWS GARLAND TO DETERMINE THE COST OF THE TREATMENT SERVICES PER THE AGREEMENTS. 
          THE COST RECOUP IS RECOUPED THROUGH TWO METHODS. 
          UH, THE FIRST IS BY BILLING ANNUALLY ADJUSTED CUSTOMER SPECIFIC RATES CHARGED PER 1000 GALLONS OF WASTEWATER MEASURED AT THE POINT OF ENTRY. 
          AND THAT'S THROUGH A UTILIZED THROUGH A COST OF SERVICE RATE STUDY. 
          AND THEN THE SECOND IS BY APPLYING MONTHLY SURCHARGES FOR EXCESS BOD AND TSS. 
          SO, SIR, UH, PER THE CITY ORDINANCE, THE CUSTOMER AGREEMENTS, UM, AND THE CUSTOMER AGREEMENTS, WASTEWATER STRENGTH EXCEEDING 250 MILLIGRAMS PER LITER FOR EITHER BOD OR TSS RESULTS IN A SURCHARGE TO RECOVER THE COST OF TREATING THE EXCESS STRENGTH. 
          DURING OUR ANALYSIS OF THE WASTEWATER STRENGTH REPORTS, SEVERAL INSTANCES OF SAMPLES EXCEEDED THESE MAXIMUM LIMITS. 
          UM, ALL POINTS OF ENTRIES SAMPLED EXCEEDED THE MAXIMUM AT LEAST ONCE. 
          UM, IN TOTAL, ABOUT OVER 50% OF ALL STRENGTH SAMPLES EXCEEDED THE LIMITS OF THE, UM, 322 BOD SAMPLES AND 322 TSS SAMPLES, 179 BOD SAMPLES EXCEEDED AND 172 TSS, UM, SAMPLES 
          [00:20:01]
EXCEEDED. 
          CAN YOU GO TO EXHIBIT, EXHIBIT A REALLY QUICK? THIS IS, UH, A TABLE OF, UM, THE OCCURRENCES OF, OF EACH, UH, SAMPLING RANGE. 
          OKAY. 
          YOU CAN GO BACK. 
          IT'S PAGE 12. 
          UM, IA SAMPLED ACROSS THE BILLS ACROSS THE SCOPE OF THE AUDIT, INQUIRED WITH THE WASTEWATER DEPARTMENT TO DETERMINE IF SURCHARGES WERE BEING ASSESSED, BUT NO SURCHARGES ARE IDENTIFIED AND THE COST OF SERVICE RATE STUDY IS BEING CONDUCTED EVERY YEAR. 
          SO OUR RECOMMENDATION IS THAT MANAGEMENT ENSURE SURCHARGES ARE BEING PROPERLY ASSESSED FOR EXCESS WASTEWATER STRENGTH MANAGEMENT OCCURS. 
          THE CITY'S ORDINANCE ON NON-COMPLIANT WASTEWATER SURCHARGE DIFFERS FROM THE CONTRACTS IN THAT IT STATES A SURCHARGE WILL BE, WILL BE APPLIED TO THE RATE PROVIDED IN SUBSECTION A IF THE WASTEWATER DISCHARGE INTO THE CITY'S WASTEWATER SYSTEM BY THE CUSTOMER EXCEEDS THE QUALITY LOADING WEIGHTED AVERAGE BIOCHEMICAL OXYGEN DE OXYGEN DEMAND, AND WEIGHTED AVERAGE TOTAL SUSPENDED SOLIDS USED IN THE DEVELOPMENT OF THE SPECIFIED RATE BY 50% OR MORE BOD AND TSS SAMPLES IN WHICH THE AVERAGE THREE MONTH LEVELS EXCEED THOSE LEVELS USED IN THE DEVELOPMENT OF THE SPECIFIED RATE BY 50% OR MORE ARE MESH LESS COMMON. 
          STAFF WILL REQUEST THE CITY ATTORNEY'S OPINION ON WHICH CALCULATION TO DETERMINE NONCOMPLIANT WASTEWATER SURCHARGE IS APPROPRIATE TO USE IMPLEMENTATION DATE SEPTEMBER 30TH THIS YEAR. 
          NUMBER FOUR, ONE OF SUNNYVALE'S POINTS OF ENTRY IS NOT SAMPLED FOR WASTEWATER STRENGTH AND THE DALLAS POINT OF ENTRY WASN'T SAMPLED FOR SEVEN MONTHS. 
          UM, SO, UH, THE SUNNYVILLE, ONE OF ONE OF SIX SUNNYVALE'S PO UH, POINT OF ENTRIES WERE NOT SAMPLED. 
          AND DALLAS, UM, HAD SEVEN CONSECUTIVE MONTHS OVER THE SCOPE OF THE AUDIT. 
          WASTEWATER RECORDED FOR THE SUNNYVILLE POINT OF ENTRY TOTALED 38 MILLION GALLONS, UH, FOR THE SEVEN MONTHS. 
          DALLAS WASN'T SAMPLED. 
          ABOUT 180 MILLION GALLONS WERE DISCHARGED, UH, WITHOUT MONTHLY STRENGTH SAMPLING. 
          GARLAND MAY NOT FULLY GARLAND MAY NOT BE FULLY RECOVERING THE COST OF TREATING SUNNYVILLE AND DALLAS' WASTEWATER. 
          OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD SAMPLE ALL POINTS OF ENTRY FOR ALL MUNICIPAL CUSTOMERS EACH MONTH. 
          IF A SAMPLING PORT DOESN'T EXIST OR IS INACCESSIBLE, COORDINATE WITH THE CUSTOMER TO INSTALL ONE OR FIND AN ALTERNATIVE MANAGEMENT PARTIALLY CONCURS. 
          THE DALLAS POINT OF ENTRY AND SAMPLING MANHOLE ARE WITHIN THE ACTIVE CONSTRUCTION ZONE FOR HIGHWAY 6 35 EXPANSION PROJECT, AND THE SUNNYVILLE POINT OF ENTRY IS ALREADY UNMETERED, SO THERE'S NO ACCESS POINTS. 
          AND INSTALLING AN ENTRY POINT SAMPLING AT THIS LOCATION ISN'T CURRENT, ISN'T CURRENTLY COST EFFECTIVE, UM, AND THEY DON'T DON'T EXPECT IT TO BE, UH, MATERIALLY AFFECT THE WEIGHTED AVERAGE OF THE BOD AND TSS LEVELS OF SUNNYVALE'S RATE CALCULATION. 
          THE UNMETERED FLOW ACCOUNTS WERE ONLY 8%, AND THIS IS TALKING ABOUT SUNNYVILLE STILL. 
          THE UNMETERED FLOW ACCOUNTS FOR, UH, ACCOUNTS WERE ONLY 8% OF THE TOTAL SUNNYVILLE FLOW. 
          AND CUSTOMER MAKEUP IS SIMILAR TO THAT OF THE REST OF THE SERVICE AREA. 
          GW STAFF IS WORKING WITH SUNNYVILLE AND THIRD PARTY CONSULTANT TO IDENTIFY AN ACCEPTABLE METERING LOCATION FOR THIS SECTION OF SUNNYVILLE. 
          IF AND WHEN A MANHOLE AND METER ARE INSTALLED FOR THIS LOCATION, MONTHLY SAMPLING WILL BE CONDUCTED. 
          IMPLEMENTATION DATE STAFF CONTACTED DALLAS STAFF REGARDING ACCESSIBILITY OF METER LOCATION ON APRIL 1ST, 2025, AND THERE ARE ONGOING DISCUSSIONS ABOUT SUNNYVALE. 
          NUMBER FIVE, GARLAND DOESN'T RECEIVE DALLAS WASTEWATER METER CALIBRATION REPORTS. 
          UM, PER OUR AGREEMENT WITH DALLAS, DALLAS SHOULD BE CALIBRATING THEIR METER EVERY FOUR MONTHS AND GARLAND SHOULD HAVE THE OPPORTUNITY TO OBSERVE IT. 
          PERIODIC CALIBRATIONS OF THE DALLAS METER AREN'T OBSERVED OR REPORTED TO GARLAND. 
          UM, DALLAS'S AVERAGE WASTEWATER CONSUMPTION WAS 27.8 MILLION GALLONS PER MONTH OVER THE SCOPE AND AN AVERAGE BILL OF $94,600 PER MONTH. 
          SO OUR RECOMMENDATIONS, THE MANAGEMENT SHOULD COORDINATE WITH DALLAS TO ENSURE GARLAND PERSONNEL OR AN AGENT THEREOF, OBSERVES AND COLLECTS CALIBRATION REPORTS OF THE DALLAS METER MANAGEMENT. 
          CONCURS STAFF WILL CONTACT DALLAS STAFF TO RECEIVE PAST AND FUTURE CALIBRATION REPORTS, BUT THE ONGOING CONSTRUCTION OF HIGHWAY 36 35 EXPANSION PROJECT MAY HAVE BEEN, UH, MADE THE RECENT CALIBRATION OF THIS METER DIFFICULT OR IMPOSSIBLE. 
          UM, GARLAND STAFF WILL CONTACT DALLAS STAFF TO GET THEIR ESTIMATE ON WHEN THE METERING LOCATION WILL BE ACCESSIBLE FOR CALIBRATION AS IT'S WITHIN AN ACTIVE CONSTRUCT CONSTRUCTION ZONE. 
          FOR THE RENEGOTIATED DALLAS CONTRACT, GW STAFF WILL RECOMMEND A SIX MONTH OR 180 DAY CALIBRATION CALIBRATION REQUIREMENT. 
          UM, THEY FEEL THAT THE FOUR MONTH CALIBRATION REQUIREMENTS TO EXCESSIVE AS AN INDUSTRY STANDARDS RECOMMENDS SEWER METER CALIBRATIONS ANNUALLY OR SEMI-ANNUALLY. 
          IMPLEMENTATION DATE, UH, STAFF CONTACTED DALLAS ON APRIL 1ST, AND THEN CALIBRATION REPORTS WILL BE REQUESTED PERIODICALLY. 
          MOVING ON NUMBER SIX, NEW ANNUAL RATES ARE ASSESSED ONE MONTH LATE EVERY YEAR. 
          A PROFESSIONAL CONSULTANT IS HIRED BY THE CITY TO CONDUCT A COST OF RATE, SERVICE RATE STUDY ANALYSIS TO DETERMINE THE WHOLESALE WASTEWATER RATES FOR THE UPCOMING YEAR. 
          THIS RATE, ALONG WITH OTHER RATES 
          [00:25:01]
LISTED IN THE CITY ORDINANCES IS APPROVED BY CITY COUNCIL AND AN EFFECTIVE AND GIVEN AN EFFECTIVE DATE OF OCTOBER 1ST. 
          SO THE NEW FISCAL YEAR, A MUNICIPAL CUSTOMERS ARE NOTIFIED OF THEIR RESPECTIVE NEW RATE, PRELIMINARY AND UPON APPROVAL AND GIVEN THE EFFECTIVE DATE. 
          HOWEVER, THE EFFECTIVE DATE FOR, UM, THE FISCAL YEAR THAT, UH, INTERNAL AUDIT LOOKED AT WAS WRITTEN FOR NOVEMBER 1ST, ONE MONTH AFTER THE BEGINNING OF THE ACTUAL FISCAL YEAR. 
          SUBSEQUENTLY, NEW RATES WERE APPLIED ONE MONTH LATER THAN THE ANNUAL BUDGET APPROVED BY COUNCIL. 
          AND WITHIN THE SCOPE OF THE AUDIT, THIS HAS RESULTED IN A NET LOSS OF GREATER THAN $61,000. 
          OUR RECOMMENDATIONS IS THAT MANAGEMENT SHOULD ENSURE THE EFFECTIVE DATE OF THE NEW RATES PROVIDED IN THE NOTIFICATION LETTERS TO THE CUSTOMERS, MATCH THE EFFECTIVE DATE APPROVED BY COUNSEL, AND THEN ENSURE CORRECT DATES ARE BEING APPLIED IN THE CORRECT FISCAL YEAR. 
          IN THE BILLING SYSTEM MANAGEMENT CONCURS, IT HAS BEEN THE INTENT TO HAVE THE SPECIFIC RATES DEVELOPED FOR WHOLESALE CUSTOMERS GO INTO EFFECT NOVEMBER 1ST. 
          ALL COMMUNICATION WITH WHOLESALE CUSTOMERS REFER TO NOVEMBER 1ST, EFFECTIVE DATE THROUGH 2009. 
          THE WHOLESALE CUSTOMER RATES WERE NOT APPROVED BY COUNCIL UNTIL SOMETIME IN OCTOBER WITH AN EFFECTIVE DATE OF NOVEMBER 1ST BEGINNING IN S SEPTEMBER, 2010. 
          THE WHOLESALE CUSTOMER RATES WERE APPROVED IN SEPTEMBER, BUT THE EFFECTIVE DATE FOR THE WHOLESALE CUSTOMERS WAS SPECIFIED TO BE NOVEMBER 1ST, WHILE OTHER RATE CHANGES WENT INTO EFFECT OCTOBER 1ST. 
          THIS PRACTICE CONTINUED UNTIL SEPTEMBER, 2014, WHICH WAS THE FIRST UTILITY RATE ORDINANCE THAT DID NOT CALL OUT A NOVEMBER 1ST EFFECTIVE DATE FOR WHOLESALE CUSTOMERS. 
          THE FISCAL YEAR 20 14 20 15 NOTIFICATION LETTERS CONTINUED TO REFERENCE A NOVEMBER 1ST EFFECTIVE DATE, AND THAT HAS BEEN THE PRACTICE SINCE THEN FOR FISCAL YEAR 25, 26. 
          AND GOING FORWARD, UH, GWU WILL COMMUNICATE AN OCTOBER 4TH EFFECTIVE DATE FOR THE ANNUAL RATE CHANGES TO THE WHOLESALE WASTEWATER CUSTOMERS. 
          TO BE CONSISTENT WITH OTHER RATE CHANGES, STAFF WILL COMMUNICATE AN OCTOBER 1ST, 2025 EFFECTIVE DATE FOR THE UPCOMING FISCAL YEAR, ANNUAL RATE CHANGES TO THIS CUSTOMER SERVICE DEPARTMENT FOR UPDATING THE BILLING SYSTEM IMPLEMENTATION DATE JUNE 30TH, 2025, TO NOTIFY WHOLESALE CUSTOMERS OF AN OCTOBER 1ST, 2025 DATE FOR THE NEXT YEAR. 
          NUMBER SEVEN, LIABILITY VERBIAGE AND REQUIREMENTS ARE INCONSISTENT ACROSS AGREEMENTS. 
          THE WASTEWATER SERVICES AGREEMENT WITH DALLAS COUNTY MUD NUMBER FOUR REQUIRES THE DISTRICT TO SECURE GENERAL LIABILITY INSURANCE, UM, ACCEPTABLE TO AND APPROVED IN WRITING BY GARLAND FOR $5 MILLION. 
          UM, THIS IS TO COVER ANY PAYMENT OF, UH, FINES OR PENALTIES DUE TO THEM CAUSING GARLAND TO BE OUT OF COMPLIANCE WITH STATE AND FEDERAL REGULATIONS. 
          SO BEFORE THIS AUDIT, GARLAND GARLAND DIDN'T HAVE PROOF OF THIS INSURANCE POLICY ON FILE. 
          ONCE WE REQUESTED IT, IT WAS FOUND THE POLICY ONLY HAD, UH, 300 MILLION LISTED. 
          UM, NOTE THE OTHER MUNICIPAL CUSTOMER AGREEMENTS HAVE NO SUCH INSURANCE REQUIREMENT, UNLIKE THE DALLAS COUNTY MUD NUMBER FOUR AGREEMENT, THE OTHER MUNICIPAL CUSTOMERS AGREEMENTS STATE THAT DAMAGES FROM THE TRANSPORTATION DELIVERY RECEPTION, TREATMENT AND DISPOSAL OF THE WASTEWATER DISCHARGE IN A GARLAND WASTEWATER SYSTEM LIES WITH THE CUSTOMER UNTIL IT PASSES THROUGH THE POINT OF ENTRY. 
          AND AT THAT POINT, IT LIABILITY LIES WITH GARLAND. 
          UM, SO OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD ENSURE THE DALLAS COUNTY MUDS LIABILITY INSURANCE MEETS THE AG AGREEMENTS, MINIMUM DOLLAR VALUE OF $5 MILLION. 
          CONSIDER AMENDING THE DALLAS RICHARDSON SUNNYVILLE SAX AND  AGREEMENTS TO REQUIRE LIABILITY, LIABILITY INSURANCE TO COVER NECESSARY COST TO RETURN GARLAND BACK INTO COMPLIANCE WITH OUR REGULATIONS AND COVER ANY PENALTIES AND FINES IF THEY FAIL TO MAINTAIN, UH, QUALITY STANDARDS. 
          AND THEN CONSIDER AMENDING DALLAS COUNTY MUD'S AGREEMENT TO INCLUDE SUFFICIENT LIABILITY VERBIAGE FOR SYSTEM DAMAGES THAT'S LISTED IN THE OTHER AGREEMENTS. 
          MANAGEMENT RESPONSE IS A PARTIALLY CONCUR ACTION PLAN. 
          GW STAFF RECEIVE NOTICE FROM THE MUD'S LEGAL REPRESENTATIVE THAT THE $5 MILLION GENERAL LIABILITY INSURANCE WAS APPROVED WITH AN EFFECTIVE DATE OF FEBRUARY 25TH, 2025, AND THEY'RE AWAITING THE POLICY DOCUMENTS SO THEY CAN BE REVIEWED AND APPROVED BY THE CITY ATTORNEY AND RISK MANAGEMENT STAFF. 
          DOESN'T FEEL IT'S APPROPRIATE TO ATTEMPT AMENDING THE EXISTING CONTRACTS WITH DALLAS RICHARDSON, SAXE, SUNNYVALE AND RAIL REGARDING LIABILITY INSURANCE POLICIES. 
          IF DAMAGES OCCUR, THE EXISTING CONTRACT LANGUAGE, UH, WILL SERVE TO ASSIGN LIABILITY DAMAGES. 
          UH, WE'LL BRING THIS UP AS A DISCUSSION POINT WITH THE ATTORNEY'S OFFICE IN RISK MANAGEMENT. 
          WHEN RE RENEGOTIATE, RENEGOTIATING THE CONTRACTS. 
          UH, STAFF BELIEVE THE EXISTING CONTRACT LANGUAGE IS SUFFICIENT TO ASSIGN LIABILITY OF DAMAGES TO GARLAND'S SYSTEM IN THE CASE OF PROHIBITED DISCHARGES, BUT WILL CONFER WITH THE ATTORNEY'S OFFICE IN RISK MANAGEMENT. 
          GW RECEIVED CONFIRMATION OF INCREASE TO GENERAL LIABILITY INSURANCE POLICY FROM MUD ON MARCH 20TH, 2025. 
          NUMBER EIGHT, CONSUMPTION CALCULATION METHODOLOGY FOR INOPERABLE METERS IS INCORRECT. 
          SO THE AGREEMENTS, UH, FOR 
          [00:30:01]
FOUR OF THESE CITIES, UM, PROVIDE THOSE TWO EXAMPLE CALCULATIONS FOR CALCULATING DISCHARGE VOLUME WHEN METERS ARE INOPERABLE. 
          UM, BOTH OF THESE METHODS ARE INCORRECT. 
          THEY ATTEMPT TO ASCERTAIN THE AVERAGE TWICE. 
          THE AGREEMENTS WITH DALLAS AND RICHARDSON PROVIDE VAGUE INSTRUCTIONS. 
          UM, THEY DON'T REALLY GIVE A SPECIFIC WAY TO CALCULATE IT. 
          THEY JUST SAY, EXTEND BACK, UH, ONE HALF THE TIME ELAPSE SINCE THE DATE OF THE LAST CALIBRATION, NO FURTHER BACK THAN SIX MONTHS. 
          IN PRACTICE, UH, THE WASTEWATER DEPARTMENT USES KEEP GOING DOWN, USES A CORRECT CALCULATION, UM, WITH THE, USING THE AVERAGE 12 MONTH, UH, PLUS 3% MULTIPLIED BY THE METER OF DAY, UH, DAYS OF THE METERS OUT OF SERVICE. 
          AND THEN IN ONE CASE, UM, THE DAILY AVERAGE OVER A PERIOD OF 23 DAYS WAS USED. 
          AND THAT'S BECAUSE THEY HAVE MORE ADVANCED METERING EQUIPMENT AT THAT LOCATION AND IT'S MORE ACCURATE. 
          SO, UM, OUR RECOMMENDATION IS THAT MANAGEMENT CONSIDER AMENDING THE DALLAS AND RICHARDSON AGREEMENTS TO INCLUDE A DEFINED CALCULATION METHOD OR ONE THAT REFLECTS THE METHOD USED IN PRACTICED AND CONSIDER AMENDING THE REMAINING AGREEMENTS TO INCLUDE A CORRECT CALCULATION METHOD OR CALCULATIONS OR THE CALCULATION USED IN PRACTICE FOR EACH RESPECTIVE MUNICIPALITY MANAGEMENT. 
          CONCURS THE CONTRACTS WITH DALLAS AND RICHARDSON WILL BE RENEGOTIATED OVER THE NEXT TWO YEARS IN THE CALIBRATION METHODS CALCULATION METHODS FOR INOPERABLE METERS WILL BE A POINT OF DISCUSSION. 
          STAFF, STAFF WILL REQUEST THE CITY ATTORNEY'S OPINION ON THE MEANING OF THE RELEVANT SECTIONS OF THE CONTRACTS. 
          WE DON'T BELIEVE IT WOULD BE NECESSARY TO AMEND THESE CONTRACTS IF A PRACTICAL UNDERSTANDING OF THE CALCULATIONS UTILIZED. 
          IMPLEMENTATION DATES SEPTEMBER 30TH THIS YEAR. 
          NUMBER NINE CALCULATION. 
          EXCUSE ME IF I MAY ADD SOMETHING. 
          YES, AS, AS ERIN NEEDS TAKING A BREAK. 
          AS YOU CAN SEE, THIS IS A VERY COMPREHENSIVE PROGRAM AND, AND MICHAEL AND, AND, AND JAMES AND HIS STAFF, YOU KNOW, AS THEY INHERITED THIS PROGRAM, THEY HAVEN'T BEEN WITH THE CITY FOR TOO LONG. 
          SO A LOT OF THIS, YOU KNOW, UH, HAS BEEN GOING ON FOR SOME TIME. 
          SO PLEASE ALLOW THEM SOME GRACE  AS WE GO THROUGH ALL OF THIS. 
          THAT'S JUST WANNA MENTION THAT. 
          OKAY. 
          NUMBER NINE, CALCULATION METHOD FOR INOPERABLE METER CONSUMPTION IS NOT ALWAYS FULLY DOCUMENTED. 
          ONE METER FOR SAXY WAS DETERMINED TO BE INACCURATE, INOPERABLE, AND OR UNDER REPAIR FOR NEARLY 12 CONSECUTIVE MONTHS. 
          AS A RESULT, A CALCULATION METHOD WAS USED TO DETERMINE THE ESTIMATED CONSUMPTION USED IN PLACE OF A MEASURED CONSUMPTION FOR BILLING PURPOSES. 
          THE CONSUMPTION FOR EIGHT CONSUM EIGHT CONSECUTIVE MONTHS OF METER DOWNTIME COULD NOT BE RECALCULATED BY INTERNAL AUDIT. 
          AS THE METHOD WAS NOT DOCUMENTED IN DETAIL, OUR RECOMMENDATION IS THAT MANAGEMENT, UM, ENSURE THE CALCULATION METHODS USED, INCLUDING THE AVERAGE MONTH DATA IS RECORDED AND RETAINED. 
          MANAGEMENT CONCURS STAFF WILL MAINTAIN A MORE DETAILED, MORE DETAILED RECORDS OF THE CALCULATIONS USED TO ESTIMATE FLOW WHEN A METER IS INOPERABLE. 
          REVIEW OF THE ESTIMATED FLOW CALCULATIONS IN QUESTION REVEALED INCONSISTENCIES IN THE CALCULATION METHOD, WHICH WERE CORRECT DURING THE TIME OF THE METER. 
          INOPERABILITY IMPLEMENTATION DATE APRIL 1ST THIS YEAR, 10 SUNNYVALE POTABLE WATER CONSUMPTION DATA IS NOT VERIFIED. 
          ONE OF THE SIX POINTS OF ENTRY VERSUS SUNNYVALE'S WASTEWATER DISCHARGE INTO OUR SYSTEM ISN'T METERED. 
          UM, AS AN ALTERNATIVE ESTIMATE FOR PURPOSES, WE USE 80% OF THE COMP CONSUMPTION OF POTABLE WATER FOR THAT AREA. 
          UM, AND THAT DATA IS PROVIDED BY SUNNYVILLE IN AN EDITABLE SPREADSHEET AND NOT A SYSTEM REPORT. 
          DURING TESTING, WE IDENTIFIED A CUMULATIVE CONSUMPTION REPORT PROVIDED BY SUNNYVILLE CONTAINED DIFFERENT VALUES FOR THE CONSUMPTION IN PREVIOUS MONTHS, THEN BILLED UPON THEIR UPON REQUEST. 
          THE WASTEWATER DEPARTMENT PROVIDED THE ORIGINAL PORT REPORTS FOR THOSE MONTHS, WHICH IA THEN VERIFIED THAT THESE DID MATCH THE AMOUNT BILLED. 
          IT WAS ABOUT $930 IN DIFFERENCE THAT WE, UM, OVERBUILD THEM. 
          UM, BUT SINCE NEITHER THE ORIGINAL DATA NOR THE REVISED DATA COULD BE VERIFIED, UM, THE DEPARTMENT DIDN'T MAKE ANY ADJUSTMENTS. 
          OUR RECOMMENDATION IS THAT MANAGEMENT SHOULD REQUEST A SYSTEM GENERATED REPORT FOR SUNNYVILLE POTABLE WATER CONSUMPTION DATA MANAGEMENT. 
          CONCURS SUNNYVILLE STAFF BEGAN SENDING A SYSTEM GENERATED REPORT IN FEBRUARY OF THIS YEAR OF THE POTABLE WATER CONSUMPTION IMPLEMENTATION DATE. 
          FEBRUARY 1ST, NUMBER 11, REPORTING REQUIREMENTS FOR INFILTRATION AND INFLOW ARE NON-EXISTENT IN THE AGREEMENTS, INFLOW AND INFILTRATION OF GROUND SURFACE AND STORMWATER MAY LEAK THROUGH DAMAGED PIPES, JOINTS, MANHOLES, AND IMPROPER CONNECTIONS. 
          EXCESSIVE INFLOW AND INFILTRATION COULD OVERLOAD GARLAND'S WASTEWATER SYSTEM AND NEG NEGATIVELY AFFECTED ITS LONGEVITY. 
          THE CURRENT AGREEMENTS DO NOT SPECIFY REQUIREMENTS FOR MUNICIPAL CUSTOMERS TO REPORT ANY OF THEIR OWN TESTING OR MONITORING EFFORTS OF THEIR UH, SYSTEMS. 
          [00:35:04]
OUR RECOMMENDATION IS THAT MANAGEMENT CONSIDER FORMALLY REQUIRING THE CUSTOMERS TO PERIODICALLY PERFORM TESTS AND SURVEYS OF THEIR SYSTEMS AND FORMALLY REPORT THE RESULTS TO GARLAND AND CONSIDER IMPLEMENTING A TIERED RATE STRUCTURE OR CAPACITY LIMIT ON CUSTOMER'S. 
          CONSUMPTION MANAGEMENT CONCURS THE CONTRACT LANGUAGE REGARDING INFO AND INFILTRATION. 
          DOESN'T REQUIRE SURVEYING OR TESTING OR FORMAL REPORTING ON THE MAINTENANCE OF THE CUSTOMER'S. 
          COLLECTION SYSTEMS STAFF HAVE WORKED WITH AND CONTINUE WILL CONTINUE TO WORK WITH CUSTOMER CITY STAFF. 
          WHEN THERE'S EVIDENCE THAT INFLOW AND INFILTRATE IDENTIFY AND RESOLVE ISSUES, WE'LL REVIEW OTHER REGIONAL PROVIDERS WHOLESALE WASTEWATER TREATMENT CONTRACTS FOR SUCH REQUIREMENTS AND CONSIDER THEM FOR FUTURE CONTRACT NEGOTIATION. 
          STAFF DOESN'T EXPECT OUR WHOLESALE CUSTOMERS WOULD ENTERTAIN AMENDING EXISTING CONTRACTS TO INCLUDE TIERED RATE STRUCTURES OR DISCHARGE LIMIT AS IT WOULD NOT LIKELY BENEFIT THEM. 
          HOWEVER, WE'LL REVIEW OTHER REGIONAL PROVIDERS CONTRACTS AND SUCH FOR SUCH CONDITIONS AND CONSIDER THEM FOR FUTURE NEGOTIATION IMPLEMENTATION DATE. 
          UM, STAFF REQUESTED SIMILAR WHOLESALE WASTEWATER TREATMENT CONTRACTS FROM REGIONAL PROVIDERS ON APRIL 1ST. 
          NUMBER 12, INDUSTRIAL PRETREATMENT PROGRAM LACKS FORMALITY AND DOCUMENTATION IN ITS OVERSIGHT OF MUNICIPAL CUSTOMERS. 
          GARLAND'S IPP IS PRIMARILY FOCUSED ON COMPLYING WITH THE STATE AND FEDERAL LAW, AND ITS RESPONSIBILITIES INCLUDE TAKING MEASURES TO PROTECT THE TREATMENT PLANTS AND ENVIRONMENT. 
          TO ACHIEVE THIS, IPP MUST MONITOR THE LOCAL INDUSTRIAL USERS WHO DISCHARGE INTO GARLAND SYSTEM BECAUSE OTHER MUNICIPALITIES ALSO ARE ALSO CONNECTED TO GARLAND SYSTEM, THEIR INDUSTRIAL USERS MUST ALSO BE MONITORED. 
          THIS IS ACHIEVED THROUGH, UH, THE CUSTOMER'S OWN SITES, SITE VISITS, SURVEYS, INSPECTION, SAMPLING, ISSUANCE OF PERMITS AND SUBMISSION OF DOCUMENTATION OF GARLAND'S. 
          IPP. 
          GARLAND ALSO WORKS WITH THESE CUSTOMERS TO ADD DISCHARGE AND PERMITTING REQUIREMENTS TO THEIR LOCAL ORDINANCES TO MATCH OUR GARLAND'S. 
          IPP REQUIRES PERMITTED INSPECTIONS IN WHICH EACH CUSTOMERS PROVIDED A LIST OF INDUSTRIES TO INSPECT, DOCUMENT AND REPORT TO GARLAND. 
          DURING THE AUDIT SCOPE ONLY, RICHARDSON AND RAETT REPORTED HAVING INDUSTRIAL USERS AND THEREFORE HAVE ADDED REQUIREMENTS TO THEIR ORDINANCES AND PERFORM AND PERFORM THE PERMITTED INSPECTIONS. 
          DALLAS IDENTIFIED, DALLAS HAS IDENTIFIED ONE INDUSTRIAL USER AND IS CURRENTLY UPDATING THEIR ORDINANCE DURING TESTING. 
          IA WAS UNABLE TO LOCATE ANY EVIDENCE OF A FORMAL INSPECTION PROCESS AND DOCUMENTATION FOR RICHARD RAUP. 
          ACCORDING TO MANAGEMENT INSPECTIONS DURING THE AUDIT SCOPE WERE NOT CONDUCTED IN THE SAME MANNER AS CITY OF GARLAND'S IPP INSPECTIONS. 
          BECAUSE EACH CITY IMPLEMENTS THEIR OWN PROCESS TO IDENTIFY INDUSTRIAL USERS, OUR RECOMMENDATIONS MANAGEMENT FINALIZE AND IMPLEMENT THE FORMALIZED REPORTING AND DOCUMENTATION PROCESS FOR PERMITTED INSPECTIONS TO ENSURE TRACKING OF COMPLIANCE MANAGEMENT. 
          CONCURS THE EXISTING CONTRACT LANGUAGE REQUIRES OUR CUSTOMERS TO IDENTIFY, PERMIT AND MONITOR SIGNIFICANT INDUSTRIAL USERS IN THEIR JURISDICTION TO DISCHARGE IN A GARLAND SYSTEM. 
          SOME OF THESE CUSTOMER CITIES DON'T HAVE EXISTING INDUSTRIAL PRE PRE-TREATMENT PROGRAMS TO CONDUCT THESE ACTIVITIES, WHICH INCREASES THE RISK OF NONCOMPLIANT DISCHARGE INTO OUR SYSTEM. 
          GARLAND'S IPP STAFF HAS CONTACTED EACH CITY TO HELP THEM IMPLEMENT A MORE FORMAL PROCESS TO IDENTIFY PERMIT AND MONITOR INDUSTRIAL USERS, SIMILAR TO THAT, UTILIZED BY GARLAND'S IPP STAFF FOR GARLAND'S SIGNIFICANT INDUSTRIAL USERS TO ENSURE REGULATORY AND CONTRACT COMPLIANCE AND TO LIMIT RISK OF NONCOMPLIANT DISCHARGE INTO GARLAND SYSTEM. 
          UPON CONTRACT RENEGOTIATION GARLAND STAFF WILL PROPOSE A MORE FORMALIZED, MORE FORMALIZED REQUIREMENTS FOR THE WHOLESALE CUSTOMER CITIES TO IDENTIFY, PERMIT AND MONITOR INDUSTRIAL USERS IMPLEMENTATION DATE DISCUSSIONS ARE ONGOING WITH CUSTOMER CITIES TO FORMALIZE THEIR REPORTING DOCUMENTATION PROCESS. 
          AND WE ANTICIPATE THESE TO BE IMPLEMENTED BY SEPTEMBER 30TH, 2025. 
          THAT'S IT. 
          DO YOU HAVE ANY QUESTIONS? OKAY, COMMITTEE, YOU HAVE HEARD THE REPORT? ANY COMMENTS, QUESTIONS? ALRIGHT. 
          UH, COUNCILMAN WILLIAMS. WELL, I WON'T BELIEVE THE COURT IN MISSION CITIES. 
          THAT'S, THAT'S A VERY YOU VERY THOROUGH REPORT FIRST. 
          THANK YOU FOR THAT. 
          SECONDLY, JUD, UH, J UH, TO YOUR POINT, UH, WE WILL CERTAINLY BE GRACEFUL RECOGNIZING THAT, UH, THERE THIS WAS INHERITED. 
          UH, THIRDLY, THERE ARE SOME, SOME CITIES THAT HAVE TAKEN ADVANTAGE OF US BECAUSE OF, I'M GONNA USE THE TERM POOR MANAGEMENT OF OUR PROGRAM. 
          UM, SO I'LL MAKE THOSE POINTS AND I AGREE WITH YOUR RECOMMENDATIONS. 
          I'D LIKE TO SIMPLY ASK MR. CITY MANAGER, 
          [00:40:02]
UH, NUMBER OF THESE ACTIONS INVOLVED , REVIEWING CURRENT ORDINANCES OR CREATING ORDINANCES, UH, WITH THE ADVICE OF THE CITY ATTORNEY AND COMING TO COUNCIL AND COMING TO COUNCIL WITH A NUMBER OF ACTIONS. 
          WHAT IS THE TIMELINE FOR PROGRESS REPORT ON THIS, THIS AUDIT TAKEN? I DON'T MEAN CONCLUSIONS. 
          I MEAN, WHEN CAN WE GET, I WOULD LIKE TO, UH, FOR COUNSEL TO GET A REPORT ON PROGRESS ON THIS ENTITY AND WHAT IS GOING ON OVER THERE. 
          AND AS WE, AS WE MAKE PROGRESS, YOU CAN MAKE SUBSEQUENT REPORT, BUT I'D LIKE FOR AN INITIAL, UH, PURPOSE REPORT OF WHAT'S BEING DONE, UH, HOW IT'S BEING DONE AND WHO IS DOING IT. 
          UH, AND I THINK THE MOST IMPORTANT THING IS IF WE NEED FROM THE CITY ATTORNEY'S OFFICE GUIDANCE, OWN ORDINANCES, REVISED, WHATEVER WE NEED THAT, THAT YOU'LL BRING US SOME RECOMMENDATIONS TO BEGIN TO ADDRESSING. 
          BECAUSE IF I WERE, IF I WERE GRADING THIS REPORT ON A SCALE, UH, I'D GIVE IT A WEEK DA VERY WEEK D AND OF COURSE THINGS HAPPEN, BUT, UH, AND, AND PRIMARILY, AND I'LL SAY THIS, UH, BECAUSE OF RICHARD RICHARDSON, BUT THAT'S JUST ONE OF THE THINGS, UH, SO JUDGE, YOU WANNA RESPOND TO JUST WHAT DO YOU HAVE A, A GAME PLAN FOR BRINGING THIS PROGRESS AS YOU WORK, UH, WITH STAFF ON IMPROVING, ADDRESSING EACH OF THESE? 'CAUSE I THINK THAT EACH OF THEM, EACH OF THE FINDINGS MUST BE ADDRESSED. 
          AND I HEARD SOME DATES OUT, OUT IN 2027, I THINK AND BEYOND, BUT I'D LIKE TO FOR COUNSEL TO GET SOME UPDATES BEFORE THAT TIME. 
          ALL OF IT DOES NOT HAVE TO BE DONE, BUT CAN YOU SPEAK TO THAT PLEASE? SURE. 
          UH, SO REALLY GOOD QUESTIONS. 
          AND I, I THINK THE, THE OVERRIDING FACT HERE IS THAT WE'RE COMMITTED TO, UH, FULLY IMPLEMENTING THE CONTRACTS AND, AND TRYING TO MEET THE INTENT OF THE TERMS IN THE CONTRACT AS MUCH AS POSSIBLE. 
          UH, IN HINDSIGHT, THERE'S A LOT OF DIFFERENT THINGS THAT WE WOULD DO WHEN WE HAVE THE OPPORTUNITY TO RENEGOTIATE THESE CONTRACTS, UM, AND A COUPLE OF WHICH WILL COME UP IN 2027 FOR RENEGOTIATION. 
          BUT, UM, I, I THINK TO YOUR, TO ANSWER YOUR QUESTION, UH, THAT THE ACTION PLAN REALLY IS DEFINED IN THE AUDIT AND THERE'S A LOT OF, THERE'S SOME THINGS THAT HAVE BEEN DONE ALREADY, YOU KNOW, IN REGARDS TO, UH, THE LIABILITY INSURANCE AND, AND COVERAGE. 
          THERE, THERE'S SOME THINGS THAT ARE GOING TO BE SORT OF EASY FIXES OVER THE NEXT, YOU KNOW, SIX TO 12 MONTHS. 
          AND THERE'S SOME THINGS THAT ARE REALLY JUST GONNA HAVE TO WAIT UNTIL WE CAN RENEGOTIATE AND RE-UP THE CONTRACTS. 
          AND SO I, I GUESS IT WOULD BE MY SUGGESTION AND, AND OF COURSE DEFER TO THE COMMITTEE THAT, YOU KNOW, MAYBE WE LOOK AT A SIX OR 12 MONTH OUT REPORT BACK ON, ON A STATUS UPDATE ON THE DIFFERENT ACTIONS THAT ARE REQUIRED HERE, UH, OR RECOMMENDED IN THE AUDIT. 
          UM, SIMILAR TO WHAT WE'VE DONE ON OTHER AUDITS, COME BACK IN IN SIX OR 12 MONTHS AND REPORT BACK ON IT. 
          THERE ARE SOME THINGS THAT ARE GONNA BE EVEN FURTHER OUT THAN THAT, YOU KNOW, THE, THE FLOW METERING AND, AND UM, REALLY HAVING TO ENGINEER SOME DIFFERENT THINGS TO MAKE IT WORK. 
          BUT, BUT AT LEAST GETTING A A A STATUS UPDATE IN IN SIX OR 12 MONTHS, I THINK WOULD BE, WOULD BE REALISTIC. 
          I UNDERSTAND THAT, THAT, THAT SOME THINGS ARE SHORT TERM, SOME THINGS ARE, WILL GO OUT FURTHER 'CAUSE YOU HAVE TO BE DONE. 
          I UNDERSTAND THAT. 
          UH, BUT UPDATE, I LIKE YOUR SUGGESTIONS. 
          UH, THIS, THIS TO THIS COMMITTEE BEFORE GOING, GOING TO COUNCIL, IS THAT, UH, THE UPDATE BE DONE IN SIX MONTHS, NOT 12. 
          I'D LIKE FOR YOU TO, TO COME BACK WITH, WITH WHAT'S HAPPENING, UH, THE LONG TERM, THE, THE LONGER TERM THINGS THAT I THINK SHE MENTIONED SOME CONTRACTS THAT ARE UP FOR, YOU KNOW, THOSE AREN'T IN 2027, BUT I THINK THERE ARE SOME, THERE ARE SOME LOW HANGING FRUIT, SO TO SPEAK. 
          OKAY. 
          AND I'D LIKE FOR YOU TO PREPARE TO BRIEF THIS COMMITTEE AND, UM, I'M NOT BACKING 
          [00:45:01]
OFF FULL COUNCIL, BUT THIS COMMITTEE, THIS COMMITTEE WILL DETERMINE, UH, YOU KNOW, THE NEXT MOVE. 
          BUT I WOULD LIKE FOR YOU TO COME BACK TO THIS COMMITTEE AT LEAST IN SIX MONTHS WITH THOSE SHORT TERM, UH, PROGRESS REPORTS, UH, AS TO, UH, HOW WE ARE FERRY IN THIS, THIS AREA. 
          OKAY. 
          ALRIGHT. 
          THANK YOU. 
          THAT'S SO MR. CHAIR, MS. SCOTT. 
          WELL, UM, IT'S QUITE A REPORT. 
          , YOU KNOW, FROM EVERYTHING FROM CALIBRATION TO SAMPLING TO BILLING TO LIABILITY INSURANCE TO INFILTRATION TESTING. 
          LOOKS LIKE THERE'S A LOT OF ROOM TO GROW. 
          SO, UM, I'M LOOKING FORWARD TO THAT REPORT IN SIX MONTHS. 
          BUT IT SEEMS LIKE, UM, METERING AND SAMPLING OF OUR MEMBER CITIES, THAT'S A, THAT SHOULD BE SOMETHING THAT WOULD BE A HIGH PRIORITY BECAUSE WE NEED TO KNOW HOW MUCH FLOW THEY'RE ACTUALLY PRODUCING INTO OUR SYSTEM. 
          AND ALSO REDUCING STORM WATER INFILTRATION. 
          'CAUSE THAT OVERWHELMS THE, UM, THE TREATMENT CENTERS. 
          SO, UM, THE CONTRACTS ARE OBVIOUSLY GOING TO GET HANDLED AS THEY COME DUE. 
          THERE'S TWO OF THEM, ONE VERY LARGE, THE RICHARDSON ONE. 
          UH, DO WE, DO WE HANDLE ALL OF RICHARDSON'S UH, SEWER TREATMENT? JUST PART OF IT? NO, A LOT OF IT GOES TO THE NORTH TEXAS MUNICIPAL WATER DISTRICT. 
          OKAY. 
          AND HAVE WE, I'M SURE THAT WE'VE COMPARED OUR CONTRACTS WITH THEIR CONTRACTS THAT THEY HAVE. 
          WOULD THAT BE CORRECT? THAT'S WHAT WE'RE UNDERWAY WITH. 
          LOOKING AT WHAT NORTH TEXAS IS THROUGHOUT ALL OF THEIR AGREEMENTS, WE'RE, WE'RE CANVASSING THAT RIGHT NOW. 
          OKAY. 
          ALL RIGHT. 
          WELL, IT'S GONNA BE VERY INTERESTING. 
          AND AARON, FANTASTIC WORK. 
          THIS WAS VERY, VERY IMPRESSIVE. 
          SO THANK YOU. 
          SEVERAL EMPLOYEES THAT'S WITH OUR INDUSTRIAL PRETREATMENT GROUP. 
          AND, UM, THEY ALSO, THEY HANDLE SIGNIFICANT INDUSTRIAL USERS WITHIN GARLAND TO MAKE SURE THEY'RE PROPERLY DISCHARGING THE CONTAMINANTS THEY'RE ABLE TO DISCHARGE SO THAT IT DOESN'T HURT OUR TREATMENT PLANTS. 
          BUT THEN THEY ALSO LOOK AT THAT SAMPLING EFFORT FOR THOSE ADJACENT CITIES, CITIES AS WELL, TO MAKE SURE THE SAME, FOR EXAMPLE, RICHARDSON, BECAUSE THEY HAVE SERVICE TO NORTH TEXAS. 
          NORTH TEXAS OVERSEES ALL OF THEIR PRETREATMENT PROGRAM. 
          SO ALTHOUGH WE CONVERSE WITH RICHARDSON AND NORTH TEXAS, NORTH TEXAS IS THE, UM, DELEGATED, RESPONSIBLE, RESPONSIBLE PARTNER FOR RICHARDSON WITH REGARD TO ITS INDUSTRIAL USERS. 
          HOWEVER, WE NEED TO CIRCLE BACK AROUND WITH RICHARDSON TO MAKE SURE THEY'RE MEETING ALL OF OUR NEEDS WITH WHATEVER TESTING THEY'RE UNDERWAY WITH TO PROTECT OUR PLANTS AS WELL. 
          SO, UM, IT, IT, IT CAN GET COMPLICATED VERY QUICKLY. 
          UM, BUT, UM, SEVEN IS WHAT GARLAND HAS DEDICATED TO THIS PROGRAM, BUT I I WOULD SAY THAT PART OF THEIR RESPONSIBILITY STARTED TO LOOK AT THESE CUSTOMER CITY METERS AS WELL. 
          I I MENTIONED THAT NUMBER SEVEN BECAUSE I DIDN'T HEAR ANYWHERE IN THE REPORT THAT YOU MAY NEED EXTRA HELP , LIKE YOU GOT A LOT GOING ON A LOT BEFORE YOU. 
          AND, UH, I THINK THAT, UH, JUST BASED ON WHAT I, I HEARD, I DID HEAR A LOT OF THE, UH, CORRECTIONS INSIDE OF THE REPORT. 
          I HEARD A LOT OF DATES THAT CAME FORWARD THAT, UH, MATTER OF FACT, SOME THINGS ARE ALREADY BEING TAKEN CARE OF. 
          SOME THINGS ARE ALREADY, UH, IN THE WORK. 
          SO I THINK THAT THE REPORT ITSELF DOES GIVE US TIMELINES AND GIVE US DATES THAT THINGS ARE GOING TO TAKE PLACE. 
          YOU HAVE INDEED INHERITED A TREMENDOUS TASK. 
          AND I RECALL WHEN I WAS READING IT, I JUST, THE REPORT, I JUST HAD TO STOP. 
          I KNOW WORLD DID WE GET HERE. 
          YOU PROBABLY CAME IN ASKING THE SAME THING. 
          , I KNOW WORLD DID WE GET HERE, YOU KNOW, BUT WE ARE HERE AND THERE SEEMS TO BE A LOT OF MONEY AT STAKE, UH, AS IT RELATES TO, UH, IF WE CAN MAKE THESE CORRECTIONS, NOT IF WE MAKE THESE CORRECTIONS UPON MAKING THESE CORRECTIONS. 
          BUT, UH, AGAIN, I DIDN'T HEAR YOU ASKING FOR ANY, UH, ASSISTANCE IN ANY NEW HELP EMPLOYEES OR ANYTHING OF THAT NATURE. 
          SO IT SOUNDS LIKE YOU FEEL THAT, UH, IN THE CONCURRENCES THAT YOU HAVE, THE MANPOWER THAT YOU NEED, IS THAT I'M, UH, I'M UNDERWAY WITH THAT ASSESSMENT RIGHT NOW TO TRY TO DETERMINE IF WE HAVE THAT. 
          PART OF THE CHALLENGE IS WE'RE ASKING PEOPLE TO DO A LOT OF DIFFERENT THINGS AND, UM, ANDREW IN PARTICULAR HANDLES A LOT OF OUR BILLING, UM, AND RELATIONSHIPS WITH THOSE CUSTOMER CITIES. 
          UM, BUT MYSELF ALSO HAS TO INTERACT WITH THOSE CONTRACTS AND WITH THOSE CITIES AND, AND, UH, SAYING ONE THING AND HAVING THEM COOPERATE IS A DIFFERENT MATTER. 
          UM, BUT I GUESS, AND, AND WITH THE BIGGER PICTURE, 
          [00:50:01]
AS WE LOOK TOWARDS WHERE WE'RE HEADED WITH THE WASTEWATER, UH, AND WASTEWATER PLANT AND UPGRADES AND FUTURE CONTAMINANTS THAT ARE COMING FORWARD AND REGULATIONS, WE'RE GONNA HAVE TO START TALKING TO THESE CUSTOMER CITIES ABOUT TIGHTENING UP ON A VARIETY OF DIFFERENT ISSUES. 
          ONE IS I AND I AND PEAK FLOW, THERE'S NO PROVISION IN THOSE CONTRACTS WITH THAT. 
          AND THE ONLY REQUIREMENT ARE THAT THEY CONDUCT SUCH AN I AND I PROGRAM. 
          BUT WE'RE GONNA HAVE TO GET MORE DETAILED. 
          AND I THINK WHAT'S EVEN MORE CHALLENGING IS EACH CONTRACT HAS ITS OWN TERMS AND TRYING TO SETTLE ALL OF THOSE ON TOP OF THAT. 
          AND LASTLY I'LL SAY IS THE METERING IS A CHALLENGE AS WELL, BECAUSE IN SOME CASES, GARLAND IS A CONTRIBUTOR TO THOSE CITIES. 
          UM, WE CONTRIBUTE TO RICHARDSON AND SOME OF THAT FLOW GOES TO RICHARDSON AND SOME OF IT COMES BACK AND, AND I THINK IT'S BEEN A GOOD NEIGHBOR POLICY, BUT WHEN I, UM, GOT HERE, I STARTED ASKING, WHY IS IT THIS WAY? I HEAR HISTORIES OF LITIGATION, I HEAR HISTORIES OF A VARIETY OF ISSUES WITH HOW THINGS BECAME, UM, BUT I THINK THIS AUDIT WILL HELP US REFOCUS ON WHERE WE NEED TO GO. 
          YES, YES. 
          I, I, I AGREE TOTALLY. 
          AND I ASKED THE QUESTION, HOW DID WE GET HERE? WE GOT HERE BECAUSE WE WERE NOT FOLLOWING OUR OWN POLICIES AND PROCEDURES. 
          THAT'S PRETTY MUCH HOW WE GOT HERE. 
          BUT ALSO HEAR SOME, SOME ORDINANCE CHANGES NEED TO BE MADE. 
          I HEAR THAT LEGAL NEEDS TO BE INVOLVED HERE. 
          SO, UH, AGAIN, I THINK THAT YOU HAVE YOUR WORK CUT OUT FOR YOU. 
          UH, BUT TAKE A DEEP BREATH AND , YOU KNOW, GET AT IT. 
          UH, JUDD I THINK THAT, UH, I'M GONNA ASK YOU IS SIX MONTHS AND, AND PROBABLY SIX MONTHS IS A GOOD, UH, TURNAROUND TO COME BACK TO COMMITTEE. 
          UH, IT SEEMS LIKE IT MAY BE KIND OF PUSHING YOU PRETTY WELL THERE, BUT AGAIN, THERE ARE A LOT OF THINGS ALREADY BUILT INTO THE AUDIT ITSELF. 
          SO, UH, YEAH, AS LONG AS THE, AGAIN, THERE'S GONNA BE SOME THINGS THAT ARE GONNA BE LEFT UNDONE IN SIX MONTHS. 
          A LOT OF IT HAS TO DO WITH THE, THE FUTURE CONTRACTS AND, AND RE-UPPING THOSE. 
          UM, AND SOME STUFF'S JUST STILL GONNA BE IN THE WORKS, BUT I I, WE'LL BE READY IN SIX MONTHS FOR A REPORT BACK. 
          OKAY? OKAY. 
          UH, IF COMMITTEE, IF YOU ALL DON'T HAVE ANYTHING ELSE, I'M GOING TO AT THIS POINT SAY, AARON, AGAIN, GREAT JOB, VERY COMPREHENSIVE. 
          UH, YOU, YOU LAID IT ALL OUT FOR US. 
          UH, I WOULD LIKE TO, UH, JED SOME KIND OF WAY IN THE FUTURE THAT WE DON'T HAVE TO DO 40 MINUTES, BUT , YOU KNOW, IT, IT, IT, IT WAS VERY EXTENSIVE AND, UH, AS I, AS I SAT HERE AND THOUGHT TO MYSELF, NOW HOW CAN WE MAKE THIS A LITTLE SHORTER? WELL, IN ORDER TO UNDERSTAND WHAT THE PROBLEM IS, SHE HAS TO GIVE YOU THAT THEN IN ORDER TO UNDERSTAND WHAT THE DIFFERENT RECOMMENDATIONS WERE, SHE HAS TO GIVE YOU THAT. 
          SO THERE'RE JUST GONNA BE SOME REPORTS THAT ARE GONNA TAKE MORE TIME THAN OTHERS. 
          SO WITH THAT, UH, I JUST WANNA COMPLIMENT YOU AND THE MATTER OF WHICH YOU'VE GONE ABOUT DOING IT, JED, THANK YOU SO VERY MUCH AGAIN. 
          YEAH, NO PROBLEM. 
          CHAIRMAN, IF I MAY, YOU KNOW, CONFIRM ONE THING. 
          WE USUALLY HAVE AN AUDIT COMMITTEE IN DECEMBER. 
          ARE YOU OKAY WITH WAITING TILL DECEMBER OR DO WE WANT TO HAVE AN, WE HAVE AN AUDIT COMMITTEE IN SEPTEMBER, THEN ONE IN OH, THAT'S RIGHT. 
          SIX MONTHS IS WHAT? YEAH, SO DO YOU WANNA GO WITH SIX MONTHS EXACT, OR ARE YOU OKAY WITH WAITING TILL DECEMBER? WELL, WHATEVER THE WISHES OF THE COMMITTEE, I'M, I'M GOOD WITH EITHER WAY. 
          EITHER I'M FINE EITHER WAY. 
          DECEMBER IS FINE. 
          YEAH, THAT'D BE GREAT. 
          OKAY, SO WE'LL BE GOOD IN DECEMBER. 
          OKAY. 
          ALRIGHT. 
          BUT WITH THAT, UH, IF THERE ARE NO OTHER QUESTIONS, NOR OTHER COMMENTS ON THIS ONE, WE'LL NOW MOVE TO OUR LAST ONE. 
          THANK YOU SO VERY MUCH. 
          OKAY, THE LAST ONE, UH, THREE C, PORTABLE AND MAJOR PATCH REPAIR PROGRAM. 
          AUDIT JET. 
          YEAH, CHAIRMAN. 
          UM, THANKS AGAIN FOR HAVING US. 
          UH, I'M GONNA GO AHEAD AND ASK FOR GRACE ON THIS ONE AS WELL, UH, BECAUSE, UM, TONY'S FAIRLY NEW WITH THE CITY AS WELL. 
          I DO WANNA POINT OUT A FEW THINGS, UM, BEFORE WE EVEN GO TO THIS AUDIT REPORT. 
          UH, WE DID A POTHOLE REPAIR AUDIT MAYBE OVER 10 YEARS AGO, 10, 12 YEARS AGO. 
          UM, I, I WOULD SAY COMPARED TO WHERE WE WERE AND WHERE WE ARE TODAY, WE HAVE MADE A LOT OF PROGRESS. 
          AND I THINK SOME OF THOSE CREDITS SHOULD GO TO TONY AND HIS TEAM. 
          UH, I'LL, I'LL USE SOME EXAMPLES HERE. 
          UM, BACK WHEN WE DID THE AUDIT, UH, ABOUT 10, 12 YEARS AGO, THE, THE DATABASE THAT THEY WERE USING, OR THE WORK ORDER SYSTEM THEY WERE USING WAS NOT, UM, DETAILED ENOUGH OR WAS NOT ACCURATE ITSELF. 
          UH, I WOULD SAY THAT. 
          AND AFTER THAT, AFTER THE AUDIT, THE CITY DID RECEIVE, UH, PROOF, UH, FOR THE STREET DEPARTMENT TO RECEIVE THAT, UM, WORK ORDER SYSTEM, WHICH, WHICH, WHICH THEY IMPLEMENTED THE WORK QUARTER SYSTEM. 
          UH, AND 
          [00:55:01]
NOT ONLY THAT, UH, THEY ACTUALLY, UM, IDENTIFIED ALL THE STREET AND ALLEYS WITHIN THE WORK QUARTER SYSTEM. 
          SO THERE IS A PROGRESS HAPPENING, UH, WITHIN THAT DEPARTMENT. 
          UH, AND SO I, I'M NOT GONNA GO OVER ALL THOSE ACCOMPLISHMENTS, BUT, UM, I DON'T KNOW IF COUNCILMAN WILLIAMS REMEMBERS THIS. 
          BACK THEN WHEN WE DID THE AUDIT, ESS REPORTING WAS VERY MINIMAL, UM, TO PEOPLE DID NOT REPORT TOO MANY POTHOLE REPAIR REQUESTS. 
          AND SO THERE WAS SOME EFFORT TO ADVERTISE THROUGHOUT THE CITY, AND YOU'LL SEE THE FRUIT OF THAT LABOR TODAY. 
          UH, I WOULD SAY BASED ON EVERY COMPLAINTS THAT THEY CAPTURED, APPROXIMATELY HALF OF 'EM CAME THROUGH E ASSIST. 
          UM, SO, UH, KUDOS TO TONY AND HIS TEAM FOR WORKING IN ADVERTISING AND ALL OF THAT STUFF. 
          ANYWAY, LONG STORY SHORT, WE, OUR JO OUR OBJECTIVES WERE TO ANALYZE THE EFFECTIVENESS AND EFFICIENCY OF THE CURRENT POTHOLE REPAIR PROGRAM, VERIFY THE RELIABILITY OF KEY PERFORMANCE METRICS RELATED TO POTHOLE REPAIR, AND LASTLY, TO DETERMINE THE ACCURACY OF VENDOR PAYMENTS. 
          UH, I DO WANT TO THANK CRYSTAL, TONY AND STEVE FOR WORKING WITH US THROUGHOUT THIS AUDIT. 
          THEY WERE VERY, UH, COOPERATIVE, UH, COLLABORATIVE. 
          UM, SO THANKS TO THAT LEADERSHIP AND VIN, UM, MAINLY LED THIS AUDIT. 
          PATRICIA DID QC WORK AS PART OF THE AUDIT. 
          OUR SCOPE WAS FROM OCTOBER 1ST, 2022 THROUGH SEPTEMBER 30TH, 2024. 
          UH, GERMANY'S GONNA KIND OF WALK US THROUGH THE BACKGROUND AND HOW THIS PROCESS WORKS, UH, AND WHAT, WHAT IS CONSIDERED A POTHOLE, WHAT'S CONSIDERED A, UM, A MAJOR PATCH, UM, AND WHAT, HOW THAT PROCESS WORKS. 
          AND THEN HE WILL, UH, HE WILL SHOW US SOME OF THE OBSERVATIONS THAT WE MADE. 
          UH, ONCE AGAIN, UH, I KNOW WHEN WE DID THE AUDIT, UH, AT THAT POINT, TONY HAD PART FIVE VACANCIES RESOURCE, YOU KNOW, HE, HE, SO HE'S, HE'S DEALING WITH WHAT HE HAS RIGHT NOW. 
          SO I JUST WANNA BRING THAT TO COMMITTEE'S ATTENTION. 
          I ALSO WANT, AND ME AND JED HAD THIS DISCUSSION THE OTHER DAY, WE DO THESE AUDITS AND, UM, YOU KNOW, OF COURSE THERE ARE THINGS THAT WE NEED TO PRIORITIZE. 
          UH, BUT AT THE SAME TIME, WE AS THE AUDITORS, UM, NEED TO BE, NEED TO UNDERSTAND THAT, YOU KNOW, THEY ALSO HAVE A PRIORITY. 
          THIS IS NOT THE ONLY THING THAT THEY DO, FOR EXAMPLE, STREET DEPARTMENT. 
          THIS IS JUST ONE PIECE OF WHAT THEY DO. 
          SO I DON'T EXPECT FROM AN AUDITOR'S PERSPECTIVE, UM, THAT THEY DROP EVERYTHING ELSE AND JUST START WORKING ON ONLY POTHOLE ITSELF. 
          THAT, THAT IS NOT THE INTENT OF THE, THESE AUDITS. 
          OUR GOAL IS TO BRING, UH, THESE RISK, UH, TO THE TABLE AND POTENTIAL RECOMMENDATIONS SO THAT WAY MANAGEMENT CAN PRIORITIZE BASED ON THE RESOURCES THAT THEY HAVE. 
          SO, UM, JUST WANTED TO COMMUNICATE THAT UPFRONT SO YOU'RE GONNA HEAR SOME OBSERVATIONS AND HOPEFULLY, LIKE I SAID, UH, I'M PRETTY CONFIDENT THAT TONY AND HIS TEAM WILL GET THESE THINGS ACCOMPLISHED, UM, A AS THEY HAVE THE RESOURCES AND TIME ALLOWED. 
          SO WITH THAT, I'LL TURN THIS OVER TO J. 
          SO WE WILL GO OVER THIS. 
          THANK YOU JED, AND GOOD AFTERNOON COUNSEL. 
          I'LL JUMP RIGHT INTO THE BACKGROUND. 
          UM, SO AS WE KNOW, MOST OF GARLAND CITY MAINTAINED ROADS WERE BUILT IN 1970S AND EIGHTIES. 
          TODAY, THE CITY IS RESPONSIBLE FOR MAINTAINING APPROXIMATELY 2,357 LANE MILES OF STREETS AND 320 LANE MILES OF VALLEYS. 
          THE STREET MAINTENANCE DIVISION HANDLES REPAIRS FOR BOTH POTHOLES, WHICH IS GENERALLY THREE BY THREE FEET, OR SMALLER AND LARGE AR LARGER AREAS, WHICH ARE CALLED MAJOR PATCHES. 
          THIS POTHOLE AND PATCH REPAIR PROGRAM IS ONE OF THE CITY'S MOST VISIBLE PUBLIC SERVICE. 
          IT PLAYS AN IMPORTANT ROLE IN PROMOTING ECONOMIC DEVELOPMENT, SUPPORTING ACCESS TO ESSENTIAL SERVICE, AND ENSURING SAFE, EFFICIENT, TRAVEL WELL MAINTAINED ROADS, UH, DIRECTLY IMPACT QUALITY OF LIFE AND HELP RESIDENTS FEEL MORE CONNECTED TO THEIR COMMUNITY. 
          IN FISCAL YEAR 2024, THE DIVISION STREET DIVISION WAS BUDGETED 5.1 MILLION WITH ABOUT 1 MILLION SPECIFICALLY ALLOCATED FOR POTHOLE AND PATCH REPAIRS. 
          AND THE GRAPHIC BEHIND ME, WE CAN SEE, UM, THE KIND OF THE PROCESS. 
          I'LL JUMP RIGHT INTO THAT. 
          STEP ONE, SUPERVISOR VIEWS THE COMPLAINT IN THE WORK ORDER SYSTEM. 
          UM, ON SOME COMPLAINTS, SUPERVISOR MAY CONDUCT A VISUAL ASSESSMENT. 
          SUPERVISOR THEN PLACES AN ORDER FOR ASPHALT ACCORDING TO NEED ASSIGNED CREW TO REPAIR TASK IN THE WORK ORDER SYSTEM. 
          CREW RECEIVES AND VIEW THEIR WORK ORDER SYSTEM ASSIGNMENT, UH, ON THE IPADS AND RETRIEVE A BLANK JOB TRACKING SHEET TO RECORD THEIR DAILY ACTIVITIES. 
          MANUALLY. 
          OPERATORS TRAVEL TO ASPHALT PLANT TO PICK UP MATERIAL, UH, MAINTENANCE BEGIN AT THE SAME TIME. 
          MAINTENANCE ALSO WORKERS ALSO BEGIN PREPARE JOB SITES. 
          STEP THREE, YES, WORKERS PERFORM THE CREWS DOCUMENTING, UH, REPAIR INFORMATION ON THE JOB TRACKING SHEET, WHICH INCLUDES ADDRESS NAMES OF EMPLOYEES, 
          [01:00:01]
THE EQUIPMENT USE, HOW MANY HOURS, UM, THE TYPE OF MATERIALS AND HOW MANY TONS WERE USED, AND THE NUMBER OF SQUARE YARDS OF COMPLETED REPAIRS, AND THE TYPE OF REPAIRS, WHETHER IT'S A POTHOLE OR MAJOR PATCH. 
          AT THE END OF THE WORKDAY, THE CREW IN TURN IN THESE JOB TRACKING SHEETS AND TRUCKING MATERIALS TO THE SUPERVISOR. 
          SUPERVISOR THEN ENTERS ITEMS B THROUGH F INTO A EXCEL SPREADSHEET. 
          UM, THEN STEP FIVE SEND REPAIR INFORMATION IS ENTERED INTO THE WORK ORDER SYSTEM AND IS THEN MARKED AS COMPLETE. 
          STEP SIX, THE ADMINISTRATIVE STAFF RECEIVES THE INVOICE FOR PURCHASED MATERIALS AND RECONCILES THE TRACK TRUCKING TICKETS TO THE INVOICES. 
          ADMINISTRATIVE STAFF CODES, INVOICES TO POTHOLE OR MAJOR PATCH AND CODED INVOICES ARE PROVIDED TO SUPERVISOR FOR PAYMENT APPROVAL. 
          AND IN THE NEXT GRAPH GRAPHIC, WE CAN SEE KIND OF THE DAILY TIMELINE OF THE MAINTENANCE CREW. 
          UM, THIS IS NOT EXACT, THIS IS KIND OF AN APPROXIMATE. 
          UM, 6:30 AM SUPERVISOR ORDERS, MATERIALS, AND ASSIGNS TASKS IN THE SYS SYSTEM. 
          SEVEN TO SEVEN 30 EMPLOYEES ARRIVE, RECEIVE THEIR REPAIR ASSIGNMENTS, SEVEN 30 TO NINE EQUIPMENT OPERATORS PICK MATERIALS, UH, MAINTENANCE WORKERS, PREP WORK SITES, BARRICADES, CLEAN POTHOLES, UH, NINE TO THREE POTHOLE AND PATCH REPAIRS TAKE PLACE AT VARIOUS LOCATIONS, THREE TO 3:00 PM EMPLOYEES RETURN CLEAN TRUCKS AND TURN IN PAPERWORK, UH, TO SUPERVISOR. 
          THE DIVISION TYPICALLY USES HOT MIX ASPHALT BECAUSE IT'S MORE DURABLE AND BETTER SUITED FOR HEAVY TRAFFIC. 
          HOWEVER, HOT MIX IS ONLY PRODUCED AT BATCH PLANTS WHEN A MINIMUM VOLUME IS ORDERED. 
          AND WEATHER AND WEATHER CAN HALT PRODUCTION WHEN HOT MIXES ISN'T AVAILABLE. 
          THE DIVISION USES COLD MIX OR, UH, SHIFTS TO OTHER DUTIES LIKE CLEARING STORM DEBRIS OR MONITORING FLOOD PRONE AREAS. 
          ON AN AVERAGE WORKDAY, THREE, FIVE TON ASPHALT TRUCKS, EACH STAFFED WITH 22 EMPLOYEES TRAVEL TO ASPHALT PLANS TO PICK UP MATERIALS, AND THE TRUCKS ARE HEATED TO KEEP ASPHALT AT THE RIGHT TEMPERATURE FOR APPLICATION. 
          THE DIVISION HAS AROUND 20 STAFF, UH, INCLUDING SUPERVISORS, CREW LEADERS, OPERATORS, TECHNICIANS, ADMINISTRATIVE STAFF, AND CURRENTLY FIVE POSITIONS ARE VACANT AT THE TIME OF THE AUDIT. 
          AND NOW SOME OF THE OBSERVATIONS, UM, IN ORDER TO CHECK THE EFFECTIVENESS AND EFFICIENCY AS PART OF THE AUDIT, WE DID VARIOUS ANALYSIS TO IDENTIFY, UM, SUCH AS AVERAGE COST PER MATERIAL, AVERAGE MATERIAL COST PER SQUARE YARD REPAIRS, SQUARE YARD REPAIRED PER TON, AND COST BREAKDOWN AS A WHOLE. 
          UM, I'LL GO OVER EACH OF THESE IN OUR OBSERVATIONS THAT FOLLOW THE FIRST TABLE SHOWS AN OVERALL PICTURE OF THE NUMBER OF TONS TASKS AND SQUARE YARDS COMPLETED AS ENTERED INTO THE SYSTEM, AS WELL AS A COST OF FOR POTHOLE AND MAJOR REPAIR PROGRAM IN FFY 23 AND FFY 24. 
          WE CAN SEE IN FY 23, 40,000 TONS OF SQUARE YARDS WERE REPAIRED AND TOTALING 780,000, UH, AND FY 24 40 7,000 SQUARE YARDS WERE REPAIRED AND AROUND $918,000 WERE SPENT. 
          SOME OF THE OBSERVATIONS ARE THE TOTAL SQUARE YARDS OF MAJOR PATCH REPAIR. 
          COMPLETED IS APPROXIMATELY 10 TIMES THAT A POTHOLE FOR EACH FISCAL YEAR. 
          MAJOR PATCH REPAIR TASKS INCREASED BY 23% WHILE THE POTHOLE REPAIR TASKS DECREASED BY 9%. 
          IN FY 24 TOTAL, TOTAL SQUARE YARDS, UH, REPAIRED INCREASED BY 16% FY 24 AND TOTAL TONS PURCHASE INCREASED BY 9% FY 24 WEATHER CONDITIONS SUCH AS RAIN EVENTS AND FREEZE THAW CYCLE CAN CONTRIBUTE TO EXPANSION AND POT OF POTHOLES. 
          SINCE THE DIVISION IS PRIMARILY REACTIVE. 
          IF THE POTHOLES ARE NOT REPORTED BY CITIZEN, THESE CAN EVOLVE INTO MAJOR PATCHES, SOME COST BREAKDOWN. 
          IN THE TABLE BEHIND ME, YOU'LL SEE LABOR, MATERIAL, EQUIPMENT AND OTHER COSTS. 
          AND SOME OF THE OBSERVATIONS ARE MAJOR PATCHING REPAIRS ACCOUNT FOR 83% AND FY 23 AND 81% FY 24 TO TOTAL COST OF REPAIR INCREASED 17% FY 24 MAJOR PATCHING REPAIR COSTS INCREASED 13% FY 24 AND POTHOLE REPAIR COSTS INCREASED BY 33%. 
          FY 24 AVERAGE COST PER SQUARE YARD REPAIRED BASED ON THE SQUARE YARD. 
          UH, INFORMATION DOCUMENTED THE SUPERVISOR EXCEL SPREADSHEET AND RELATED COSTS RECORDED IN THE FINANCE SYSTEM. 
          WE CAN SEE IN THE, THESE TWO TABLES BEHIND ME, UM, WHICH IS ONE IS POTHOLE AND ONE IS MAJOR PATCH, AND BOTH SHOW THE AVERAGE COST PER SQUARE YARD. 
          THE OB OBSERVATION IS THE AVERAGE COST FOR POTHOLE REPAIRS RANGE FROM $26 TO A HIGH OF $120, AND THE AVERAGE COST FOR MAJOR PATCH REPAIRS RANGE FROM $11 TO A HIGH OF $26. 
          UM, AVERAGE MATERIAL COSTS 
          [01:05:01]
PER SQUARE YARDS REPAIRED. 
          TWO VENDORS ARE USED FOR PROCURING ASPHALT MATERIALS DUE TO AVAILABILITY. 
          VENDOR B'S PRICE PER TON REMAINED THE SAME THROUGHOUT THE SCOPE OF AUDIT. 
          PER THE CONTRACT, A PRICE INCREASE OCCURRED IN VENDOR A AS FOLLOWS. 
          UM, GENERALLY, VENDOR A IS UTILIZED AT THE BEGINNING OF EACH FISCAL YEAR TO THE UNIT COST BEING LESS. 
          ONCE VENDOR A, UH, PURCHASE ORDER FUNDS HAVE BEEN EXPENDED. 
          THE DIVISION USES VENDOR B FOR REMAINDER OF THE FISCAL YEAR. 
          THIS PRACTICE IS THE REASON FOR THE SPIKE SEEN IN THE LATER MONTHS OF EACH FISCAL YEAR. 
          IA PERFORMED AN ANALYSIS OF THE MATERIAL COST PER SQUARE YARDS OF REPAIR BASED ON THE INFORMATION DOCUMENTED IN THE SUPERVISOR EXCEL SPREADSHEET AND IN OUR FINANCE SYSTEM. 
          UM, AS WE LOOK AT THIS GRAPH, UH, SOME OBSERVATIONS THAT WE NOTICED WAS THE AVERAGE MATERIAL COST IS EXPECTED TO HAVE MINIMAL DEVIATIONS SINCE THE UNIT COST IS FIXED. 
          UH, FOR THE MAJOR PATCH REPAIR TASK, AVERAGE COST RANGE FROM A LOW OF 92 CENTS TO A HIGH OF $11 PER SQUARE YARD. 
          FOR POTHOLES REPAIR TASKS, THE AVERAGE COST RANGE FROM A LOW OF 47 CENTS TO A HIGH OF $12 PER SQUARE YARD, SQUARE YARDS ARE REPAIRED PER TON. 
          THE NEXT CHART, UH, SHOWS THE AVERAGE NUMBER OF SQUARE YARDS REPAIRED PER TON OF ASPHALT, UH, BASED ON THE INFORMATION DOCUMENTED IN THE SUPERVISOR SPREADSHEET. 
          AND THE OBSERVATION IS THE AVERAGE SQUARE YARDS REPAIRED VARIED PER TON, RANGING FROM A LOW OF 11, UH, 65 TO A HIGH OF 24.27 SQUARE YARDS. 
          SOME OF THE FACTORS THAT ARE CONTRIBUTING TO THESE OBSERVATIONS, SOME OF THE DEVIATIONS AND VARIATIONS ARE THAT WE CAN NOTICE. 
          ARE THESE AS FOLLOWS? ALTHOUGH THE DIVISION HAS A WORK ORDER SYSTEM, THE VEHICLES ARE EQUIPPED WITH ELECTRONIC DEVICES. 
          SUCH AN IPAD DAILY JOB ACTIVITIES ARE CAPTURED MANUALLY. 
          THE WORK ORDER SYSTEM HAS DATA FIELDS THAT CAPTURE INFORMATION SUCH AS LABOR EQUIPMENT, HOURS, SQUARE YARDS, REPAIRED, MATERIAL COSTS AND TONNAGE USE TO PROPERLY CALCULATE MATERIALS NEEDED FOR REPAIR. 
          THE LENGTH, WIDTH AND DEPTH SHOULD BE CON MEASURED. 
          CURRENTLY WHEN PLACING AN ORDER, THE LENGTH AND WIDTH OF THE REPAIR AREA IS ESTIMATED, BUT NOT THE DEPTH DURING THE REPAIR PROCESS. 
          CREWS ESTIMATE THE SQUARE YARDS REPAIR BASED ON A VISUAL ESTIMATION AND CONSIDERABLY LENGTH AND WIDTH. 
          DOCUMENTATION IS NOT CONSISTENT ON JOB TRACKING SHEET. 
          UH, TRANSFERRING DATA FROM JOB TRACKING SHEET TO EXCEL SPREADSHEET CAN RESULT IN SOME ERRORS. 
          ACCORDING TO, UH, MANAGEMENT CREWS MAY COME ACROSS ADDITIONAL REPAIRS WHILE DOING THEIR ASSIGNED REPAIR TASKS. 
          THESE REPAIRS ARE NOT CONSISTENTLY CAPTURED ON THE CRUISE JOB TRACKING SHEET AND THEREFORE DO NOT GET ENTERED INTO THE SUPERVISOR EXCEL SPREADSHEET. 
          SOME RECOMMENDATIONS WE HAVE ARE, UM, UH, UTILIZE THE WORK ORDER SYSTEM AND ELECTRONIC DEVICE CAPABILITY TO CAPTURE DAILY JOB ACTIVITIES. 
          MANAGEMENT RESPONSE WAS CONCUR. 
          ACTION PLAN WAS THE STREETS DEPARTMENT WILL SEEK TO REDUCE MANUAL PROCESS WHERE POSSIBLE, UH, ENHANCE UTILIZATION OF CARDIOGRAPH. 
          THE EXISTING ASSET MANAGEMENT SYSTEM WILL SUPPORT THIS ACTION IN SOME WAYS. 
          IMPLEMENTATION DATE, AUGUST, 2025. 
          OUR NEXT RECOMMENDATION WAS PROVIDE CREWS WITH PROPER TOOLS TO MEASURE LENGTH, WIDTH, AND DEPTH TO, TO IMPROVE ACCURACY IN ESTIMATING TONS NEEDED AND SQUARE YARDS REPAIRED, IMPLEMENT AND PERFORM CONTINUOUS MONITORING. 
          UH, MANAGEMENT RESPONSE CONCUR. 
          UH, ACTION PLAN. 
          INSPECTION OF POTHOLE LOCATION PRIOR TO REPAIR ARE DESIGNED TO ESTIMATE THE SCOPE OF WORK INCLUDING ESTIMATED POTHOLE DIMENSIONS, DIMENSIONS. 
          PRIOR TO FINALIZING OUR POTHOLE AND MAJOR PATCH REPAIR PROGRAM, THE MANAGEMENT WILL RETRAIN CREWS ON HOW TO ESTIMATE POTHOLE DIMENSIONS AND ASPHALT TONNAGE IN THE FIELD. 
          UH, IMPLEMENTATION DATE AUGUST, 2025. 
          AND OUR LAST RECOMMENDATION FOR THIS OBSERVATION WAS TRACK ALL REPAIRS INCLUDING PROACTIVE REPAIRS. 
          MANAGEMENT CORRESPOND CONCUR. 
          THE RESPONSE, THE CREW WILL BE TRAINED ON HOW TO USE CARDIOGRAPH TO RECORD PROACTIVE REPAIR WORK PERFORMED, UH, IMPLEMENTATION DATE AUGUST, 2025. 
          I KNOW THAT WAS A LONG ONE, SO IF THERE'S ANY QUESTIONS, , IF NOT, I, SORRY. 
          SALE. 
          GO RIGHT AHEAD. 
          UH, OUR SECOND OBSERVATION WAS ACCURACY OF INVOICES, PROCESSED PERFORMANCE TRACKING AND EVIDENCE OF REPAIR. 
          AS PREVIOUSLY STATED, THE DIVISION DOES NOT TAKE FULL ADVANTAGE OF THE WORK ORDER SYSTEM AND SAID YOUR INFORMATION IS RECORDED ON JOB TRACKING SHEET AND THEN TO AN EXCEL SPREADSHEET TO ENSURE INVOICES ARE PAID ACCURATELY AND SQUARE. 
          YARD INFORMATION IS RECORDED ACCURATELY. 
          UH, WE PERFORMED THE FOLLOWING ANALYSIS. 
          WE DID THE TONNAGE COMPARISON FOR INVOICE ACCURACY. 
          UH, WE COMPARED THE TONS BETWEEN JOB TRACKING SHEETS, UH, THE EXCEL SPREADSHEET AND VENDOR SALES 
          [01:10:01]
TICKET. 
          AND IN THIS CHART WE CAN SEE THE KIND OF THE DISCREPANCY BETWEEN THEM. 
          UH, THERE ARE DISCREPANCY BETWEEN JOB TRACKING SHEET, THE SUPERVISOR EXCEL SPREADSHEET AND VENDOR SALES TICKET SCALE TICKET. 
          FURTHERMORE, AS I PREVIOUSLY MENTIONED, THIS MAY HAVE BEEN DUE TO JOB ACTIVITY BEING MANUALLY CAPTURED AND TRANSFERRING DATA INTO EXCEL SPREADSHEET SQUARE YARD COMPARISON FOR PERFORMANCE TRACKING. 
          UH, WE THEN COMPARED SQUARE YARDS BETWEEN JOB TRACKING SHEET AND SUPERVISOR'S EXCEL SPREADSHEET. 
          AGAIN, UH, DUE TO THE MANUAL PROCESS, THERE ARE SIGNIFICANT D DIFFERENCES IN INFORMATION RECORDED ON THE JOB TRACKING SHEETS WHEN COMPARED TO THE SUPERVISOR EXCEL SHEET. 
          THE SQUARE YARD INFORMATION CAPTURED IN THE SUPERVISOR EXCEL SHEET IS CURRENTLY REPORTED AS PERFORMANCE METRIC AND IN ADDITION, AS PREVIOUSLY MENTIONED, NO OTHER RELEVANT PERFORMANCE DATA IS CAPTURED IN WORK ORDER SYSTEM. 
          THUS, NOT ALL SIGNIFICANT METRICS CAN BE EVALUATED OR REPORTED, SUCH AS COST PER SQUARE YARD REPAIRED PER TON AND NUMBER OF TASKS, UH, COMPLETED PER DAY WITHOUT ACCURATE PERFORMANCE MEASURES, APPROPRIATE OPERATIONAL DECISION MAKING IS IMPACTED. 
          UM, AND JUST TO KEEP IN MIND, THE SAMPLE WAS JUST FOR FOUR MONTHS, MARCH, APRIL, MAY, AND JUNE. 
          EVIDENCE OF REPAIR IA SAMPLED AROUND 70 REPAIR ATTACHED TO VERIFY COMPLETION AND DOCUMENTATION OF REPAIRS PERFORMED AND FOUND THAT ONLY SIX OF THEM HAD BEFORE AND AFTER PHOTOGRAPHS, AND TWO HAD BEFORE OLE AND TWO HAD AFTER OLI. 
          UM, AND THE REMAINING 60 HAD NO PHOTOGRAPHS AT ALL. 
          UH, OUR RECOMMENDATIONS WERE MANAGEMENT SHOULD IMPLEMENT USAGE OF THE WORK ORDER SYSTEM AND DEVELOP PERFORMANCE CRITERIA, INCLUDING PHOTOGRAPHIC REQUIREMENTS. 
          MANAGEMENT RESPONDED WITH CONCUR ACTION PLAN, A PROJECT TO EXPAND CAR GRAPH UTILIZATION ACROSS THE STREET DEPARTMENT OPERATIONS WAS INITIATED IN 2024 AND IS ONGOING. 
          THIS PROJECT WILL INCLUDE INQUIRING ALL EQUIPMENT, LABOR AND MATERIALS DATA USED FOR POTHOLE REPAIRS AND MAJOR P ACTIVITIES TO BE CAPTURED IN CAR GRAPH, WHICH WILL ELIMINATE SOME OF THE MANUAL PROCESSES NOTED IN THIS AUDIT. 
          THE UNIT PRICE FOR EQUIPMENT LABOR MATERIALS WILL BE PROGRAMMED INTO THE SYSTEM, NO FREQUENT, NO LESS FREQUENTLY THAN ANNUALLY TO ENSURE SYSTEM REPORTED ACTIVITY COSTS REMAIN ACCURATE AND RELEVANT OVER AND IMPLEMENTATION DATE, UH, AUGUST, 2025. 
          UH, THE IS THE ESTIMATED LAUNCH FOR PHASE ONE OF THE CARDIOGRAPH MANAGEMENT INITIATIVE AND THE POTHOLE REPAIR AND MANAGEMENT PATCH PROGRAM IS INCLUDED IN PHASE ONE. 
          UM, WE ALSO RECOMMENDED ONCE IMPLEMENTED OUR, UH, GENERATE PERIODIC REPORTS TO ASSESS PERFORMANCE METRICS OF THE PROGRAM, IDENTIFY TRENDS SUCH AS, UH, REPEAT REPAIRS AND ENSURE PROPER USE OF THE SYSTEM MANAGEMENT CONCURS AND IMPLEMENTATION DATE OCTOBER, 2025. 
          MANAGEMENT RESPONSE WAS THE STREET DEPARTMENT WILL EVALUATE OTHER MEANINGFUL PROGRAM PERFORMANCE CRITERIA DEFINED SUCH AS CRITERIA AND TRACK IT MONTHLY. 
          NUMBER THREE, EIST. 
          UM, THE CITY RECEIVES POTHOLE REPAIR COMPLAINTS THROUGH EIST PHONE AND EMAIL. 
          UM, ACCORDING TO DOCUMENTATION IN THIS DIVISION SYSTEM 3000, AROUND 3000 POTHOLE AND MAJOR PATCH REPAIRS WERE COMPLETED DURING THE 24 MONTH SCOPE OF OUR AUDIT. 
          OF THE 3,163 REPAIRS, 1,493, WHICH REPRESENTS 47% OF ALL REQUESTS FOR REPAIRS CAME THROUGH EIST. 
          THE DIVISION DOES NOT, UH, TRACK SPECIFIC SOURCE OF COMPLAINTS OTHER THAN ESS. 
          SO THE REMAINING 1670 REPAIRS WERE PRESUMABLY, UH, COMPLETED DUE TO PHONE OR EMAIL REQUEST OR POTENTIALLY STAFF OBSERVATIONS. 
          UPON RE REVIEWING ESS DATA, UH, WE DETERMINED THAT 1493 REPAIRS WERE SPREAD ACROSS NORTH, CENTRAL AND SOUTH SECTOR AS THE CITY AS FOLLOWS. 
          AND THE MAP KIND OF SHOWS THAT IT'S PRETTY, WE GET COMPLAINTS FROM EVERYWHERE. 
          SO, UM, THE NEXT CHART KIND OF ILLUSTRATES A NUMBER OF EISS COMPLAINT RECEIVED EACH MONTH. 
          IN ADDITION, ALL RELEVANT ESIS REQUESTS WERE ENTERED INTO THE WORK ORDER SYSTEM AS FOLLOWING, 82% OF THESE WERE ENTERED INTO THE WORK ORDER SYSTEM WITHIN ONE BUSINESS DAY 16, UH, WITHIN TWO TO FIVE BUSINESS DAY, AND 2% WERE, UM, IN TURN TO THE WORK ORDER SYSTEM, UH, MORE THAN FIVE DAYS AFTER RECEIVING. 
          OUR RECOMMENDATION WAS CITY ADMINISTRATION SHOULD EXPLORE WHETHER INTERFACING EIST WITH DIVISION WORK ORDER SYSTEM IS FEASIBLE TO INCREASE EFFICIENCY. 
          MANAGEMENT RESPONSE WAS CONCUR ACTION PLAN ADMINISTRATION AND IT ARE WORKING TOWARDS A SOLUTION TO INTEGRATE THE CITIZEN WORK ORDER SYSTEM WITH THE CITY WORK ORDER SYSTEM. 
          UM, IMPLEMENTATION DATE FY 26. 
          OUR FOURTH OBSERVATION 
          [01:15:01]
WAS TIMELINESS. 
          CURRENTLY, THE DIVISION EXPECTATION IS TO COMPLETE ALL POTHOLE REPAIRS WITHIN SEVEN BUSINESS DAYS AND ALL MAJOR PATCH WITHIN 14 BUSINESS DAYS OF RECEIPT OF SERVICE. 
          UH, WE DID SOME ANALYSIS OF THE COMPLETION REPAIRS AND FOUND THE FOLLOWING. 
          APPROXIMATELY 80% OF ALL MAJOR PATCH REPAIRS WERE COMPLETED WITHIN THE 14 DAY GUIDELINE. 
          APPROXIMATELY 58% OF POTHOLE REPAIRS WERE COMPLETED WITHIN THE SEVEN DAY GUIDELINE DIVISION TRUCKS RIGHT CURRENTLY DOES NOT HAVE A GPS INSTALLED TO FACILITATE, UH, EFFICIENCY AND TIMELINESS. 
          OUR, UH, MAN, OUR RECOMMENDATION WAS THAT MANAGEMENT SHOULD REEVALUATE, UH, THE REPAIR PROCESS TO IDENTIFY REASONS FOR DELAYS SUCH AS PRIORITIZATION, SCHEDULING AND RESOURCE ALLOCATION AND IMPLEMENTATION PROCESS, UH, IMPROVEMENTS TO REDUCE TURNAROUND TIME MANAGEMENT RESPONSE, PARTIALLY CONCUR. 
          ACTION PLAN. 
          THERE ARE SEVERAL FACTORS THAT CAN IMPACT THE ABILITY TO RESPOND TO POTHOLE REPAIRS THAT CANNOT BE CONTROLLED BY STAFF. 
          THESE FACTORS INCLUDE HUMAN RESOURCE SHORTAGE, WEATHER, EQUIPMENT FAILURES, AND ASPHALT AVAILABILITY. 
          AS NOTED ELSEWHERE IN THIS REPORT IN OCTOBER, 2024, UH, STREET DEPARTMENT INSTITUTED A PERFORMANCE MEASURE FOR POTHOLE REPAIRS THAT DEFINES THE GOAL OF REPAIRING 85% OF REPORTED REPAIRS WITHIN SEVEN BUSINESS SEVEN DAYS RESPONSE PERIOD. 
          OTHER PERFORMANCE MEASURES WILL ALSO BE DEVELOPED AS WELL AS THE STANDARD OPERATING PROCEDURES FOR THE PROGRAM THAT SHOULD CONTRIBUTE TO ENHANCING THE OPERATION. 
          OUR SECOND, UH, RECOMMENDATION WAS MANAGEMENT SHOULD INSTALL GPS CAPABILITIES ON TRUCKS TO ENHANCE OPERATIONAL EFFICIENCIES AND MONITORING. 
          MANAGING, UH, RESPONSE WOULD PARTIALLY CONCUR, UH, TO, UH, THEIR ACTION PLAN WAS INSTALLATION OF GPS, UH, ON THE STREETS. 
          FLEET OF VEHICLES AND EQUIPMENT BEGAN IN MID-MARCH 2025, AND AN ESTIMATED TO BE COMPLETED BY THE END OF MAY. 
          THIS IS A CITYWIDE INITIATIVE AND THE IMPLEMENTATION DATE FOR THAT WAS, UM, SINCE THE TELEMATICS PROJECT IS CITYWIDE INITIATIVE, WHICH IS NOT SPECIFICALLY MANAGED BY STREETS DEPARTMENT, THE IMPLEMENTATION SCHEDULE IS THEREFORE NOT DRIVEN BY THE STREET DEPARTMENT. 
          HOWEVER, ONCE FULLY IMPLEMENTED FULL IMPLEMENTATION IS ACHIEVED, UM, WE WILL STAND AT READY TO MAKE FULL USE OF THE TELEMATICS TO ENHANCE OPERATIONAL EFFICIENCY. 
          OBSERVATION FIVE, TECHNOLOGY TO IDENTIFY AND MEASURE, AS PREVIOUS, PREVIOUSLY STATED, THE DIVISION'S CURRENT POTHOLE REPAIR STRATEGIES, PRIMARILY REACTIVE. 
          WHILE UH, MANAGEMENT ADDRESSES THESE COMPLAINTS, THERE IS TECHNOLOGY AVAILABLE TO PROACTIVELY DETECT POTHOLES AND MAJOR PATCH CONDITIONS BEFORE ADDITIONAL DETERIORATION OCCURS. 
          CITY SANITATION TRUCKS DRIVE EVERY STREET ON AN ALLEY ON A WEEKLY BASIS TO ENHANCE REPAIR EFFICIENCY AND COST EFFECTIVENESS. 
          UM, TRUCKS SHOULD BE EQUIPPED OR COULD BE EQUIPPED WITH CAMERAS AND ARTIFICIAL INTELLIGENCE. 
          UH, THE SOFTWARE SENDS AUTOMATED NOTIFICATION TO THE STREET DEPARTMENT WHO WOULD REVIEW THE FOOTAGE, WHICH WOULD, WHICH REFLECTS PRECISE LOCATION AND OTHER RELEVANT INFORMATION. 
          CURRENTLY, THERE ARE OTHER CITIES, UH, IN US AND INTERNATIONALLY THAT, UH, USES POTHOLE TECHNOLOGY AND MEASUREMENT OF NEEDED STREETS REPAIRS. 
          CURRENTLY EACH OF THESE THREE ASPHALT TRUCK CARRY AN IPAD. 
          THERE ARE APPLICATION THAT CAN BE INSTALLED TO MEASURE THE LENGTH, WIDTH AND DEPTH OF AREAS TO BE REPAIRED. 
          ADDITIONAL TECHNOLOGY RESOURCE WOULD ENHANCE CURRENT OPERATIONS BY ESTABLISHING ON DEMAND DATA ANALYTICS AND REPORTING, OBTAINING ACCURATE MEASUREMENTS AND REPAIRS NEEDED, STRENGTHENING REPAIR RESPONSE TIME, INCREASING ROAD MOBILITY AND SAFETY FOR THE COMMUNITY, REDUCING INFRASTRUCTURE COSTS, OPTIMIZING RESOURCE UTILIZATION BY REDUCING THE NEED FOR VISUAL INSPECTION INSPECTION PRIOR TO REPAIR, REMOVING THE ACCURACY OF PHYSICAL LOCATIONS OF REPAIR NEEDED. 
          WE RECOMMENDED THAT MANAGEMENT SHOULD WORK WITH IT DEPARTMENT TO EVALUATE AI TECHNOLOGY AND MEASUREMENT APPLICATION. 
          AND WE ALSO RECOMMENDED THAT CONSIDER PROCURING AI TECHNOLOGY TO LEVERAGE THE SANITATION ROUTES TO, UH, PROACTIVELY DETECT REPORT AND ANALYZE STREET REPAIRS. 
          MANAGEMENT RESPONSE WAS PARTIALLY CONCUR. 
          THE ACTION PLAN IS MANAGEMENT APPRECIATES AUDITOR RECOMMENDATION AND RECOGNIZE THE POTENTIAL VALUE THAT EMERGES EMERGING IN AI TECHNOLOGY AND MEASUREMENT APPLICATION COULD BRING TO STREET MAINTENANCE REPORT OPERATIONS. 
          UPON, UH, HIRING THE STREET DIRECTOR, HE CONDUCTED RESEARCH INTO THE TECHNOLOGY REFERENCED ABOVE AT THE TIME, UH, IT'S MANAGEMENT ASSESSMENT THAT SEVERAL FOUNDATIONAL ELEMENTS MUST BE IN PLACE TO SUCCESSFULLY IMPLEMENT AND MAXIMIZE THE BENEFIT OF SUCH TOOLS, INCLUDING A FULLY IMPLEMENTED ASSET MANAGEMENT SYSTEM, STREAMLINED WORKFLOWS AND ADDITIONAL STAFFING CAPACITY TO RESPOND, UM, TO THE ANTICIPATED 
          [01:20:01]
INCREASE IN WORK ORDERS. 
          UM, PRETTY MUCH THEY HAVE SOME PRIORITIES THEY NEED TO TAKE CARE OF FIRST, AND THIS WILL BE SOMETHING ON THEIR LIST. 
          NUMBER SIX, SYSTEM ACCESS STAFF USING OTHER EMPLOYEES LOGINS. 
          ALTHOUGH THE WORK ORDER SYSTEM IS NOT FULLY UTILIZED, STREET EMPLOYEES WHO DID NOT HAVE A NEED FOR IT WERE FOUND TO HAVE UNNECESSARY ADMINISTRATIVE RIGHTS, GIVING EVERYONE THE ABILITY TO E EDIT, DELETE INFORMATION IN THE WORK ORDER SYSTEM. 
          IN ADDITION TO TERMINATING EMPLOYEES', ACCESS RIGHTS WERE NOT DEACTIVATED FROM THE WORK ORDER SYSTEM IN A TIMELY MANNER, AND CURRENT EMPLOYEES HAD ACCESS TO THEIR LOGIN CREDENTIALS. 
          THIS COULD LEAD TO INAPPROPRIATE ACTIONS WITHIN THE SYSTEM AS UNRESTRICTED ADMINISTRATIVE RIGHTS MAY ALLOW UNTH OR ACCIDENTAL CHANGES. 
          OUR RECOMMENDATION WAS THAT WE, UH, MANAGEMENT SHOULD RESTRICT ADMINISTRATIVE ACCESS TO ONLY THOSE EMPLOYEES TO WHO REQUIRED FOR THEIR JOB RESPONSIBILITIES. 
          IMPLEMENT A REGULAR REVIEW PROCESS TO ENSURE EMPLOYEE ACCESS RIGHTS ALIGN WITH THEIR EMPLOYEE CURRENT ROLES, AND ENSURE TERMINATED EMPLOYEES ACCESS IS DEACTIVATED TIMELY TO PREVENT UNAUTHORIZED USE MANAGEMENT RESPONSE. 
          CONCUR. 
          THE STREETS WILL DEPARTMENT WILL REVIEW CURRENT ACCESS FOR, UH, CHOREOGRAPH USAGE TO ENSURE SUCH ACCESS ALIGNS WITH THE USER'S ROLES AND RESPONSIBILITY. 
          THE STREET DEPARTMENT WILL DEVELOP A PROTOCOL FOR PERIODIC ASSESSMENT OF CARDIOGRAPH ACCESS RIGHTS AND THEIR ALIGNMENT WITH ROLES AND RESPONSIBILITIES FOR EXISTING USERS. 
          UM, THE STREET DEPARTMENT WILL ALSO WORK WITH IT TO SEE IF THERE CAN BE AN AUTOMATED, UM, AUTOMATED WAY OF, UH, SEEING ONCE THE OFFBOARDING PROCESS IS DONE, IF IT CAN TAKE OVER, UH, NOW THAT IT HAS A CARDIOGRAPH SYSTEM ADMINISTRATOR WHO COULD POTENTIALLY ASSUME THIS RESPONSIBILITY. 
          IMPLEMENTATION DATE, UH, FOR THE FIRST ONE IS IMMEDIATE AND THE SECOND ONE IS COMPLETE BY SECOND AND THIRD IS COMPLETE BY AUGUST, 2025. 
          OUR SEVENTH OBSERVATION WAS POLICIES AND PROCEDURES. 
          THE DIVISION CURRENTLY RELIES ON INFORMAL VERBAL INFORMATION AND LACKS COMPREHENSIVE FORMALIZED POLICIES, PROCEDURES, AND GUIDELINE CONTAINING KEY OPERATIONAL INFORMATION SUCH AS DEFINING ROLES AND RESPONSIBILITY WITHIN THE PROGRAM, DEFINING KEY PERFORMANCE INDICATOR, RECORDING AND PROCESSING, UH, ESS COMPLAINTS, STANDARDS OF WHAT CONSTITUTE AS A POTHOLE OR MAJOR PATCH ACCURATELY MEASURING AND RECORDING SQUARE YARDS, MONITORING, RUNNING REPORTS, PHOTOGRAPHS, ET CETERA. 
          A RECOMMENDATION IS THAT MANAGEMENT SHOULD CREATE AND IMPLEMENT A SET OF WRITTEN POLICIES, PROCEDURES, AND GUIDELINES THAT, UH, AT MINIMUM HAS EVERYTHING ALL THAT I DESCRIBED ABOVE MANAGEMENT RESPONSE. 
          CONCUR ACTION PLAN AT THE TIME OF THIS AUDIT, UH, AT THE TIME OF THIS RESPONSE WAS PREPARED. 
          THE STREET DEPARTMENT ALREADY HAD A FRAMEWORK DEVELOPED FOR STANDARD OPERATING PROCEDURE FOR THE POTHOLE AND MAJOR PATCH PROGRAM, AND THEY WILL INITIATE BUILDING OUT THE SOP THAT WILL CAPTURE THE TENANTS OF THE PRO RECOMMENDED BY THIS AUDIT, ALONG WITH OTHER RELEVANT CRITERIA THAT WILL HELP STANDARDIZE THE WAY THEY PLAN AND EXECUTE, UH, IMPLEMENTATION DATE NOVEMBER, 2025. 
          THANK YOU. 
          THANK YOU. 
          ALRIGHT, COMMITTEE, YOU'VE HEARD THE REPORT. 
          COUNCILMAN WILLIAMS. WELL DONE. 
          THANK YOU. 
          THANK YOU. 
          JUST ONE QUESTION SINCE TWO, I THINK YOU MENTIONED IT AND JED MENTIONED IT SINCE I WASN'T GONNA MENTION IT, BUT SINCE YOU MENTIONED IT, I WILL , UH, MR. CITY MANAGER, YOU SAID, UM, ON THE OUTSET OF THE VACANCIES IN THE STREET DEPARTMENT, WHAT, IF ANYTHING, WE'RE WE'RE, WE'RE DOING, UH, TO ADDRESS? ARE WE RECRUITING? ARE WE CITY MANAGER? SINCE THEY PUT THAT OUT THERE, UH, I'M GONNA PUT THAT TO YOU. 
          UM, AND I'LL, MAY I ASK TONY TO WEIGH IN HERE A LITTLE BIT TOO, TONY? UM, THE LABOR MARKET'S CHANGED A LOT IN THE LAST FIVE YEARS, AND I'LL SAY THAT, UM, WE'VE BEEN BATTLING VACANCIES REALLY SINCE THE PANDEMIC. 
          I THINK THINGS HAVE GOTTEN BETTER, BUT, UM, CERTAIN POSITIONS WE STILL STRUGGLE TO RECRUIT ON. 
          UM, AND AS FAR AS THE OUTLOOK, I'LL, I'LL DEFER TO TONY IN TERMS OF WHAT, WHAT THAT LOOKS LIKE MOVING FORWARD AND WHAT OUR STRATEGIES ARE THERE. 
          WELL, GOOD AFTERNOON. 
          GOOD AFTERNOON, MR. CHAIRMAN. 
          YES, SIR. 
          UH, MEMBERS OF THE COMMITTEE. 
          UH, JUDD IS RIGHT. 
          MR. CITY MANAGER IS CORRECT. 
          IT IS EXTREMELY CHALLENGING IN THIS LABOR MARKET, NOT JUST WITH THE POSITIONS THAT ARE PREDOMINANT IN MY DEPARTMENT, WHICH ARE TYPICALLY FRONTLINE POSITIONS, BUT IT'S AT EVERY LEVEL. 
          UM, I HAVE OTHER PROFESSIONAL POSITIONS, UH, IN MY ORGANIZATION, LIMITED COMPARED TO FRONTLINE STAFF, BUT THOSE ARE EVEN CHALLENGING TO RECRUIT FOR. 
          THE MARKET TRULY HAS 
          [01:25:01]
CHANGED IN IN THE LAST FEW YEARS, AND IT IS A CHALLENGE. 
          UH, WE ARE TRYING TO WORK THROUGH IT AS BEST WE CAN. 
          I I, I WILL ACKNOWLEDGE TO YOU WHEN WE TALK ABOUT THOSE FIVE VACANCIES, UH, ON THE MAINTENANCE DIVISION SIDE, THREE OF THOSE ARE MAINTENANCE WORKERS POSITIONS. 
          ONE IS A HEAVY EQUIPMENT OPERATOR POSITION AND THE OTHER ONE IS A CREW LEADER POSITION. 
          UM, I, I CAN'T COMPETE SOMETIMES WITH OTHER CITIES BASED ON WHAT WE WOULD START A MAINTENANCE WORKER AT. 
          I'VE HAD MAINTENANCE WORKERS LEAVE MY DEPARTMENT AND GO TO OTHER CITIES BASED ON, UM, THE SALARY. 
          IT, IT IS JUST REALLY CHALLENGING AND WE DO THE BEST WE CAN. 
          WE ARE EVEN TRYING TO STREAMLINE SOME OF OUR WISHLIST REQUIREMENTS FOR THESE CANDIDATES. 
          WHEREAS WE MIGHT WANT A CANDIDATE AS A MAINTENANCE WORKER WHO MAYBE HAS TOUCHED CONSTRUCTION, MAYBE NOT STREET CONSTRUCTION, BUT HAS TOUCHED CONSTRUCTION SOME WAY, EVEN IF IT'S MASONRY WORK, THAT'S KIND OF A PREFERRED CANDIDATE FOR AN ENTRY LEVEL POSITION. 
          BUT NOW WE ARE TRULY LOOKING AT, OKAY, WELL THEY WORKED AT MCDONALD'S, SO , MAYBE WE BRING 'EM IN, GIVE 'EM A SHOT, UM, BECAUSE IT'S JUST THAT CHALLENGING FOR US. 
          UM, WE ARE, I HAVE TASKED MY TEAM BECAUSE OF THE CHALLENGES WITH THE VACANCIES AT THE FRONTLINE LEVEL WITH REALLY CONTINUOUSLY REVIEWING THESE APPLICATIONS AS THEY COME IN. 
          WE, WE DON'T WANT TO MISS THE OPPORTUNITY WHEN WE'RE ALREADY BEHIND IN TERMS OF THE RECRUITMENT. 
          SO, UM, THAT IS DEFINITELY A STRATEGY AS WE MOVE FORWARD. 
          BUT I'M ACKNOWLEDGING IT IS A CHALLENGE FOR US. 
          AND I'LL, I'LL ADD THAT PART OF OUR STRATEGY, AND, AND THIS IS SOMETHING WE'VE BEEN WORKING ON WITH WITH HR, IS ON THE COMPENSATION SIDE TO MORE FREQUENTLY REVIEW WHAT THE MARKET IS FOR CERTAIN POSITIONS AND, UH, WE'VE INCREASED THE FREQUENCY OF THOSE STUDIES SO THAT AS THE MARKET CHANGES, AS OTHER CITIES, UH, PAY CHANGES FOR CERTAIN POSITIONS THAT WE CAN REACT TO THAT MORE QUICKLY. 
          UM, THAT IS SOMETHING THAT, THAT WE'VE DONE, UH, JUST HERE RECENTLY, TRYING TO BE MORE COMPETITIVE ON THE COMPENSATION FRONT. 
          ALRIGHT, GREAT. 
          THANK, THANK YOU VERY MUCH. 
          AND, UH, KUDOS. 
          YOU'VE INCREASED THE USE OF EAST EAST EAR ASSIST, UH, CITYWIDE. 
          I THINK I NOTICED THAT CHART THERE. 
          AND, UH, CITIZENS ARE USING THAT. 
          THEY ARE. 
          SO, AND THAT IS PRIMARILY BECAUSE OF YOU. 
          THANK YOU. 
          UH, IT'S A STREETS IS A VERY POPULAR TOPIC. 
          IT IS. 
          OKAY. 
          THANK YOU. 
          THANK YOU, TONY. 
          THANK YOU. 
          UH, THANK YOU MR. CHAIR. 
          WELL, DEVIN, UH, VERY GOOD JOB ON THE REPORT. 
          UM, WE CAN SEE THAT THERE'S BEEN A LOT OF IMPROVEMENT. 
          YOU CAN SEE THAT THE ADDING THE GIS DETAILS AND WORKING ON WORKFLOW AND, UH, THE ADDITION OF AI IN THE FUTURE, IT'S GOING TO REALLY IMPROVE THINGS. 
          BUT YOU'RE RIGHT, UNTIL WE GET RECRUITING, GET FILL IN ALL THE STAFF AND MAKE IT WHERE WE CAN ACTUALLY EXECUTE A LOT OF THESE THINGS FASTER, IT'S GONNA BE CHALLENGING, BUT, UH, IT'S A, YOU KNOW, IT'S A GOOD PATHWAY FORWARD, SO THANK YOU. 
          OKAY. 
          WELL, IT'D BE GOOD TO JUST BE ABLE TO WALK AWAY AT THIS POINT, RIGHT? , . 
          WELL, UH, AS I'VE LISTENED, I WANNA FIRST OF ALL ACKNOWLEDGE THAT YOU HAVE CERTAINLY MADE A DIFFERENCE. 
          YOU PERSONALLY HAVE MADE A DIFFERENCE, UH, IN COMING TO THE CITY. 
          UH, DISTRICT THREE IS WE'RE JUST ELEPHANT GLAD TO HAVE YOU. 
          OKAY. 
          WE CALL, AND NORMALLY IT DOESN'T TAKE 24, 48 HOURS. 
          IF THERE IS A PROBLEM, YOU'VE PRETTY MUCH BEEN ON TOP OF IT. 
          AND WHILE I DO RECOGNIZE THAT, UH, THIS HIRING SITUATION IS SOMETHING THAT IS TRULY BEFORE US, IT IS A CHALLENGE. 
          STREETS 230,000,005 YEAR PLAN, AND THEY'RE NOT GONNA GET ANY BETTER. 
          IT'S SOMETHING THAT WE JUST WE'RE GONNA HAVE TO DEAL WITH AT ALL TIMES. 
          AND BASED ON THIS REPORT, IT'S VERY IMPORTANT THAT WE IDENTIFY AND NOT JUST IDENTIFY, BUT SOME TYPE OF WAY, GET A HOLD OF THE MONEY THAT WE'RE LOSING, THE MONEY WE'RE MISSING. 
          IT SOUNDS LIKE, UH, IF, IF THE ELECTRONICS, IF NOTHING ELSE, BEING ABLE TO NOT, UH, TRY TO IDENTIFY THE POTHOLE AND WHAT IT'S GONNA TAKE TO REPAIR IT MANUALLY AND ESTIMATING, BUT HAVING THE ELECTRONICS AND THE TECHNOLOGY TO GO ABOUT DOING THAT, THOSE THINGS ARE GONNA HELP TO SAVE US MONEY AS WE GO FORWARD. 
          AND SO I, I GUESS AS I'M, AS I'M LISTENING TO THE REPORT AND UNDERSTANDING EXACTLY WHAT YOU'RE FACING IN THE WAY OF BRINGING PEOPLE IN, STILL SOME TYPE OF WAY, WE'VE GOTTA FIGURE IT OUT BECAUSE WITH INFLATION, UH, WORK ORDERS THAT 
          [01:30:01]
WE HAD TWO YEARS AGO, THREE YEARS AGO, FOUR YEARS AGO, UH, WHERE WE MAY HAVE PUT 4 MILLION INTO IT, TODAY, IT'S FIVE, IT'S 6 MILLION, AND THAT'S NOT GOING TO DECREASE. 
          AND SO WHAT I'M THINKING AT THIS POINT IS YOU JUST NEED TO, YOU GOTTA LET US KNOW WHAT WE NEED. 
          AND I DON'T KNOW, JUDGE, JUST LIKE WE HAD TO DO WITH THE, THE POLICE DEPARTMENT WHEN WE WERE LOSING OUR POLICE OFFICERS AND SO ON AND SO FORTH, WE HAD TO GET IN THERE SOME TYPE OF WAY AND FIGURE OUT A WAY TO KEEP THEM. 
          AND INSTEAD OF BEING 10TH, UH, AMONG THE TOP 10, NOW WE'RE AMONG THE TOP FIVE. 
          I MEAN, AND, UH, WE'RE ABLE TO RETAIN, BUT STREETS, AS FAR AS I'M CONCERNED, ON EVERY, WE'RE IN ELECTION PERIOD RIGHT NOW. 
          AND EVERY ONE OF THOSE ELECTOR OR THOSE CANDIDATES OUT THERE, NUMBER ONE AND NUMBER TWO ON THEIR, UH, THEIR LIST IS STREETS INFRASTRUCTURE. 
          SO I, I'M JUST THINKING THAT, UH, WE NEED TO KIND OF CONTINUE TO BE STEADFAST ABOUT IT. 
          WE NEED TO CONTINUE TO MAKE THAT A PRIMARY FOCUS BECAUSE OF THE MONEY THAT WE'RE SPENDING. 
          UH, IF WE CAN MAKE UP SOME OF THIS, UH, IT'S GOING TO HELP US AS WE GO INTO THE FUTURE. 
          GREAT JOB. 
          CONTINUE TO DO THE, THE WORK THAT YOU'RE DOING. 
          AND CRYSTAL, YOU, YOU DID GOOD. 
          YOU WENT OVER THERE AND TOLD MESQUITE, NO, WE GOTTA HAVE HIM . 
          AND SO WE'RE VERY GRATEFUL FOR YOU FOR BRINGING HIM IN AND WE, AND WE GOTTA KEEP HIM RIGHT, UH, DRIVEN. 
          PATRICIA, AGAIN, GREAT JOB. 
          YOU VERY COMPREHENSIVE IN THE WORK THAT YOU'VE DONE THERE. 
          UH, JUDD THANK YOU FOR YOU AND YOUR STAFF. 
          UH, WITH THAT, ARE THERE ANY OTHER, UH, ANY OTHER, UH, QUESTIONS, ANY OTHER DISCUSSION AS IT RELATES TO, UH, THIS PARTICULAR MODE? JUDD, YOU'VE GOT ANYTHING THAT YOU WANT TO ADD? NO, I JUST APPRECIATE THE, THE RECOMMENDATIONS AND THE FINDINGS. 
          UM, WE ALWAYS APPRECIATE THE OPPORTUNITY TO INCREASE OUR EFFECTIVENESS AND PRODUCTIVITY AND, UM, LOOK FORWARD TO FOLLOWING THROUGH ON THE COMMITMENTS HERE. 
          OKAY. 
          ALRIGHT. 
          BEFORE I END, UH, JET, NO CHAIRMAN, UH, I DO WANT TO THANK EVERYONE, UM, MANAGEMENT STAFF AND, AND EVEN MY STAFF, UM, EVEN THOUGH ZACH WAS NOT IN NECESSARILY, UH, LET THESE AUDITS, HE HAD A PART IN IT TOO. 
          SO A LOT OF TIMES IT'S A TEAMWORK AND PATRICIA DID TOO. 
          SO KUDOS TO MY STAFF FOR ALL THE HARD WORK. 
          THEY MAKE MY JOB MUCH EASIER. 
          YES. 
          AND SO, AND I DO WANT TO THANK THE GOVERNING BODY CITY COUNCIL AND THE AUDIT COMMITTEE FOR YOUR SUPPORT FOR BEING PATIENT. 
          I KNOW, UH, ESPECIALLY YOU CHAIRMAN, YOU'RE THIS, LIKE YOU SAID, THIS IS THE ELECTION PERIOD AND WE'VE BEEN SITTING HERE FOR MORE THAN TWO HOURS, SO I APPRECIATE SPENDING THAT TIME. 
          WE HAD ANOTHER AUDIT COMMITTEE MEETING TWO WEEKS AGO. 
          HOPEFULLY WE WON'T HAVE ONE TILL THE END OF JUNE . 
          AND SO JUST WANT TO THANK EVERYONE AND THANKS TO JED AND HIS TEAM AS WELL, UM, FOR THEIR SUPPORT AND COLLABORATION. 
          YEAH, YEAH, OUR CITY MANAGER, UH, WE, WE REALLY DO WANT TO, UH, CONTINUE TO LIFT HIM UP AS HE GOES FORWARD. 
          'CAUSE THIS IS JUST ONE PIECE OF ALL THAT I'M CERTAIN HE'S DEALING WITH AND I WANNA SAY TO OUR, UH, COMMITTEE MEMBERS, UH, AND TO YOU, UH, MR. WILLIAMS, UH, YOUR, UH, YOUR TENURE, YOUR EXPERIENCE, UH, THAT YOU, YOU BRING TO THIS, YOU COME UP WITH THINGS THAT I DON'T KNOW IF ANY OF US WILL,  WOULD'VE THOUGHT ABOUT. 
          SO I, I JUST WANT TO SAY TO YOU, THANK YOU SO VERY MUCH FOR, UH, BRINGING THAT EXPERIENCE TO THE, UH, TO THE COMMITTEE AND TO YOU, UH, UH, BROTHER, THANK YOU SO VERY MUCH FOR, UH, YOUR CONSISTENCY AND PERSISTENCE. 
          MORE SO THE SUPPORT THAT YOU GIVE TO, UH, EACH TIME THEY COME FORWARD. 
          YOU ALWAYS FIND THAT SILVER LINING IN IT. 
          AND SO THANK YOU SO VERY MUCH OKAY WITH THAT. 
          UH, IF I DON'T SEE ANYTHING ELSE HAPPENING HERE, IT'S UH, 4 0 8, 4 0 9 AND UH, AJOUR, WE ARE ADJOURNED.
* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.