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HAVE A A COMMITTEE.GOOD EVENING AND WELCOME TO THE JUNE 16TH, 2026 MEETING OF THE AUDIT COMMITTEE.
I'M ED MOORE, THE CHAIR WE HAVE WITH US, OUR COMMITTEE MEMBERS, CHRIS OTT, AND WE ARE WAITING PRESENTLY.
DOES SHE MAKE IT? AH, AND WE HAVE HER HERE WITH US.
WE HAVE A PRETTY, UH, FULL ROOM TODAY OF THIS DISTINGUISHED LADY AND GENTLEMEN, I WANT TO JUST START OUT BY CALLING OUT A FEW OF THE NAMES.
WE HAVE OUR CITY, UH, MANAGER WITH US, MIKE BETS.
WE ALSO HAVE, UH, LOOKS, LET ME JUST GO AROUND THE ROOM HERE.
WE HAVE MATT WATSON AND LOOKS LIKE WE HAVE OUR LEGAL DEPARTMENT OVER HERE, UH, SAY SCOTT LEVINE.
AND THEN WE HAVE A LOT OF OTHER BEAUTIFUL, WONDERFUL LOOKING PEOPLE OF WHOM WE WILL PROBABLY INTRODUCE AS THEY COME FORWARD TO DISCUSS, UH, SOME OF THE, UH, DOCUMENTS THAT WE'RE GONNA BE TALKING ABOUT TODAY.
SO AS WE GET STARTED, I WANNA START OUT WITH THE APPROVAL OF THE MARCH 17TH, UH, 20, 26 MINUTES, UH, COMMITTEE.
IF YOU'VE HAD OPPORTUNITY TO READ THOSE, UH, WE WILL ENTERTAIN A MOTION TO ACCEPT.
WELL, MR. CHAIRMAN, I'D LIKE TO MAKE A MOTION THAT WE, UH, APPROVE THE MINUTES AS PRESENTED.
SECOND, WE HAVE A, A MOTION AND A PROPERLY SECOND.
I'M GONNA GO TO OUR SECRETARY NOW, UH, PERSONS WHO DESIRE TO ADDRESS THE COMMITTEE, DO WE HAVE ANY PUBLIC COMMENTS? NO COMMENTS, NO PUBLIC COMMENTS.
THAT BEING THE CASE, I'M GOING TO GO AHEAD AND GET US QUICKLY INTO OUR MEETING TODAY.
AS YOU LOOK AT THE MINUTES, OR SHOULD I SAY, IF YOU TAKE A LOOK AT THE AGENDA, YOU'LL SEE WE HAVE QUITE A FEW, UH, DOCUMENTS BEFORE US TODAY.
AND WITH THAT, I'M GOING TO GO AHEAD AND TURN THIS OVER TO OUR DIRECTOR OF AUDIT, JED JOHNSON.
GOOD AFTERNOON, CHAIRMAN, COMMITTEE MEMBERS, UH, CITY MANAGER, CITY STAFF.
THANK YOU FOR THE OPPORTUNITY TO GO OVER SOME OF THE AUDITS THAT WE HAVE CONDUCTED, UM, WITHIN THE PAST QUARTER WITH YOU.
UH, ALSO WANT TO WELCOME OUR NEW COMMITTEE MEMBER, FRANK
IN ADDITION TO THAT, CHAIRMAN, YOU'RE RIGHT, WE HAVE A NEW SENIOR AUDITOR, FRANK MAYHEW, WHO'S SITTING RIGHT HERE.
RIGHT? HE CAME FROM CITY OF DALLAS PRIOR TO CITY OF DALLAS.
HE HAD, UH, EXPERIENCE WITH TENANT HEALTH SYSTEMS, UH, NTTA NUMBER OF OTHER ORGANIZATION.
HE'S BEEN AN AUDITOR FOR QUITE SOME TIME, SO WE'RE EXCITED TO HAVE HIM ON BOARD.
WITH THAT, I'LL MOVE OVER TO OUR FIRST ITEM, ENGINEERING FEE ASSESSMENT AND COMPLIANCE AUDIT.
UM, I DO WANNA THANK, UH, MR. MICHAEL POLO AND HIS TEAM FOR WORKING WITH US THROUGHOUT THIS AUDIT.
UM, THERE WERE A NUMBER OF AREAS THAT WE REVIEWED, UH, MAINLY FROM, UM, FROM ASSESSING FEES PERSPECTIVE ENGINEERING DEPARTMENT, ASSESS FEES ON ON A NUMBER OF AREAS, SITE DEVELOPMENT PLANS RIGHT AWAY, CONTRACTOR REGISTRATION, DRAINAGE IMPROVEMENT, PARTICIPATION, EARLY IMPROVEMENT, PARTICIPATION, ALSO FILING OF REAL PROPERTY AND IMPROVEMENT.
SO WE, WE DID LOOK AT ALL OF THOSE AREAS AND I DO WANT TO THANK MICHAEL AND HIS TEAM.
THEY WERE VERY OPEN, VERY TRANSPARENT.
UM, THEY WERE OPEN WITH OUR SUGGESTIONS.
UM, WE, WE HAD A WONDERFUL TIME WORKING WITH THEM, SO REALLY DO WANNA THANK THEM FOR THAT.
MAINLY THERE WERE TWO OBJECTIVES.
WE WANTED TO ENSURE THAT, UH, NUMBER ONE, UH, THE DEPARTMENT ASSESSES FEES IN ACCORDANCE WITH THE CITY ORDINANCE, UM, AND HAS AN EFFECTIVE MONITORING IN PLACE.
SECONDLY, WE ALSO WANTED TO LOOK AT THE LAKE REBERT PARCEL SUBLEASES.
AS YOU'RE AWARE, THE CITY HAS ENTERED INTO AN AGREEMENT WITH CITY OF DALLAS BACK IN 2001, ALLOWING US TO SUBLEASE TO THE PROPERTY OWNERS THERE.
THERE WERE 99, UM, LEASE AREAS THAT WE COULD SUBLEASE.
SO WE ALSO WANTED TO MAKE SURE THAT FROM A APPLICATION FEE ASSESSMENT, INSURANCE VERIFICATIONS, ALL OF THAT PERSPECTIVE, THAT CITY HAS GOOD MONITORING IN PLACE.
SO THOSE WERE THE TWO AREAS THAT WE REVIEWED FOR THE FIRST OBJECTIVE.
UH, OUR SCOPE COVERED OCTOBER, 2023 THROUGH SEPTEMBER, 2025 FOR THE LAKESIDE PARCELS.
WE COVERED JANUARY 24 THROUGH DECEMBER, 2025.
ERIN PENNY HAS LED THIS AUDIT, SO WHAT SHE'S GONNA DO IS SHE'S GONNA GO OVER EACH OF THE AREAS THAT WE REVIEWED, AND SHE'S GONNA HIGH LEVEL GO OVER THOSE PROGRAMS
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AS WELL AS WHAT WE OBSERVED FROM A POSITIVE, AND IF THERE ARE ANY OPPORTUNITIES FOR IMPROVEMENT, SHE'S GONNA COVER THAT AS WELL.I KNOW OUR TIME IS LIMITED TODAY SINCE WE HAVE ANOTHER COMMITTEE MEETING BEFORE THE COUNCIL MEETING, SO WE'LL GO, UH, MORE FROM MY SUMMARY PERSPECTIVE, BUT HOWEVER, FEEL FREE TO ASK US ANY QUESTIONS.
WITH THAT, I'LL TURN THIS OVER TO HER.
ALRIGHT, SO WE'LL JUMP RIGHT INTO THE OBSERVATIONS.
UM, STARTING WITH DEVELOPMENT PLAN REVIEW AND INSPECTION FEES.
UH, THE DEVELOPMENT ENGINEERING GROUP REVIEWS SITE PLANS SUBMITTED BY DEVELOPERS AND CONDUCTS INSPECTIONS.
UH, THE FEES RELATED ARE BASED ON VARIOUS CRITERIA SUCH AS SQUARE FOOTAGE AND TYPE OF DEVELOPMENT.
UM, AND ALL THESE FEES ARE LISTED IN THE CITY'S ORDINANCE, AS WELL AS, UH, POSTED ON THE CITY'S WEBPAGE.
IN TOTAL, ENGINEERING COLLECTED OVER A MILLION DOLLARS IN REVIEW AND INSPECTION FEES.
OVER 86 SITE DEVELOPMENT PROJECTS THROUGH FISCAL YEARS 24 AND 25.
WE SAMPLED A TOTAL OF 27 PROJECTS OVER THE SCOPE.
AND BASED ON OUR TESTING, WE FOUND THAT FEES WERE ACCURATELY ASSESSED IN ACCORDANCE WITH THE FEE SCHEDULE.
UM, AN INTERNAL TRACKING PROCESS IS USED TO VERIFY FEE ASSESSMENTS AND MONITOR REQUIREMENTS.
SUPPORTING DOCUMENTATION FOR FEE ASSESSMENTS WAS CONSISTENTLY RETAINED, AND THE GROUP DEMONSTRATED STRONG KNOWLEDGE OF ENG ENGINEERING PRACTICES AND DEVELOPMENT STANDARDS, MOVING TO RIGHT OF WAY CONTRACTOR REGISTRATION.
THE CITY OWNS AND CONTROLS FOR PUBLIC USE, LIKE STREET SIDEWALKS, ALLEYS, AND IN SOME CASES, THE SPACES ABOVE AND BELOW LAND FOR UTILITIES.
UM, THE CITY REQUIRES PERMITS FOR ANY WORK DONE WITHIN THESE RIGHTS OF WAY.
UM, ACCORDING TO THE ORDINANCE, IN ORDER TO RECEIVE A PERMIT, THE APPLICANT, UH, MUST NOTIFY THE CITY OF ALL CONTRACTORS THAT WILL WORK ON THE SITE.
UM, AND THESE CONTRACTORS HAVE TO OFFICIALLY REGISTER WITH THE CITY, WHICH ENTAILS COLLECTING CONTACT AND INSURANCE INFORMATION RIGHT OF WAY.
PERMITS THEMSELVES HAVE NO ASSOCIATED FEES, BUT THE CONTRACTORS ARE REQUIRED TO PAY THE $400 ANNUAL REGISTRATION FEE, AND THEY CAN WORK UNDER ANY NUMBER OF PERMITS.
FOR THE 12 MONTHS FOLLOWING THAT REGISTRATION, ENGINEERING COLLECTED $35,200 AND $41,600 IN REGISTRATION FEES OVER FISCAL YEARS 2024 AND 2025 RESPECTIVELY.
WE FOUND THAT STAFF PROMPTLY RESPONDED TO EIST SUBMISSIONS.
EIST GARLAND'S AN ONLINE PLATFORM FOR RESIDENTS TO CONTACT, UH, FOR NON-EMERGENCY PURPOSES.
TWO, STAFF MEMBERS RESPONSIBLE FOR ADMINISTRATING RIGHT-OF-WAY DUTIES ALSO MONITOR THE EIST SYSTEM FOR NOTICES AND COMPLAINTS FROM THE PUBLIC.
SUBMISSIONS ARE GENERALLY REGARDING DANGEROUS CONDITIONS OR DAMAGES, WHICH OFTEN REQUIRE STAFF TO VISIT THE SITE AND COORDINATE WITH OTHER PARTIES TO RESOLVE THE ISSUE.
SO WE SAMPLED SOME OF THESE SUBMISSIONS AND FOUND THAT 88% OF NOTICES AND COMPLAINTS RECEIVED A RESPONSE FROM ENGINEERING WITHIN A MONTH, AND 59% WERE ADDRESSED WITHIN A WEEK.
NOT ALL PERMITS ARE RECORDED IN THE CRM SYSTEM.
BASED ON OUR COMPARISON BETWEEN, UH, SYSTEM GENERATED REPORTS, ENGINEERING'S MANUAL TRACKING SHEET, UH, THE PROJECTED NUMBER OF PERMITS IN THE CITY BUDGET, AND SOME INTERVIEWS THAT WE CONDUCTED.
UH, IT APPEARED THAT NOT ALL PERMITS WERE RECORDED IN THE CRM SYSTEM.
SO BLANKET PERMITS, EMERGENCY PERMITS, AND PERMITS FOR CITY DEPARTMENTS ARE FREQUENTLY TRACKED IN OUTLOOK OR IN A MANUAL SPREADSHEET.
AND IT'S UNCLEAR IF PERMIT NUMBERS ARE GENERATED.
THE CRM SYSTEM GENERATED REPORTS INDICATE OVER 1400 PERMITS WERE ISSUED ACROSS FISCAL YEAR 2024 THROUGH 2025.
HOWEVER, THE 20 25 20 26 CITY BUDGET REPORTED A LITTLE OVER 6,800 PERMITS ACROSS THE SAME TIMEFRAME.
PERMITS WERE ISSUED WITHOUT CONTRACTOR REGISTRATION.
WE SAMPLED 175 OF THE, UM, ABOUT 1400 ISSUED PERMITS, AND FOUND THAT 120 CONTRACTORS WERE RECORDED AS PERFORMING WORK UNDER THOSE PERMITS.
OF THE 175 SAMPLED PERMITS, 53 WERE ISSUED WITHOUT ALL OF THE CONTRACTORS HAVING AN ACTIVE REGISTRATION WITH THE CITY.
THE IMPACT OF THE UNREGISTERED CONTRACTORS FOR THESE SAMPLED PERMITS IS ABOUT $11,000 IN UNCOLLECTED FEES.
CONTRACTOR INSURANCE DOESN'T MEET CRITERIA AS PART OF THE REGISTRATION PROCESS.
CONTRACTORS MUST PROVIDE PROOF OF LIABILITY INSURANCE IN THE AMOUNT OF $6 MILLION WITH OCCURRENCES COVERAGE, BASIC COVERAGE INCLUDING A LIST OF LIABILITY TYPES.
IN THE ORDINANCE, WE SAMPLED 54 CONTRACTORS WHO REGISTERED WITH THE CITY WITHIN THE AUDIT SCOPE AND FOUND THAT 21 CONTRACTORS WERE GRANTED REGISTRATION EITHER WITHIN EXPIRED POLICY OR WITHOUT A POLICY.
OTHER OF THE INSURANCE POLICIES ENGINEERING PROVIDED WE SAMPLED 10 OF THE LATEST AND REQUESTED THAT RISK MANAGEMENT REVIEW THE POLICIES.
ALL POLICIES WERE DETERMINED NOT TO FULLY MEET THE CITY ORDINANCE CRITERIA.
THERE'S NO POLICY OR PROCEDURES FOR PLACING CONTRACTORS REGISTRATION ON HOLD TO ENSURE THE SAFEKEEPING OF THE CITY'S RIGHT OF WAY INFRASTRUCTURE AND THE SAFETY OF THE PUBLIC.
THE CITY ORDINANCE GRANTS THE ENGINEERING DIRECTOR THE, THE AUTHORITY TO STOP ANY PERMITTED
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WORK IF THE ORDINANCE OR PERMITS BEING VIOLATED.ENGINEERING ENFORCES THE CITY'S STANDARDS BY PLACING A HOLD ON CONTRACTOR REGISTRATION ELIGIBILITY FOR A YEAR.
HOWEVER, SUCH CONTRACTORS ARE NOT INTERNALLY TRACKED OR DOCUMENTED, AND THERE'S NO POLICY DETAILING THE LEVELS OF ENFORCEMENT AUTHORIZATION OR DELEGATION OF ENFORCEMENT.
UH, PERMIT AND CONTRACTOR DOCUMENTATION IS NOT CENTRALLY STORED WHILE PERMIT INFORMATION CONTRACTOR CONTACT DE DETAILS AND INSURANCE INFORMATION IS MANUALLY RECORDED IN THE SYSTEM.
INTERVIEWS WITH STAFF INDICATE RIGHT OF WAY.
CONTRACTOR REGISTRATION AND INSURANCE DOCUMENTS ARE NOT ALL RETAINED IN A CENTRALIZED LOCATION.
SOME FILES ARE SAVED WITHIN AN OUTLOOK INBOX.
OTHERS IN A DEPARTMENT SHARE DRIVE OR IN BOTH LOCATIONS.
PERMIT DOCUMENTATION INCLUDING APPLICATIONS ARE ALSO NOT STORED IN THE CRM SYSTEM.
IA RECOMMENDS THAT MANAGEMENT ENSURE ALL RIGHT OF WAY PERMITS ARE RECORDED IN THE CRM SYSTEM.
ENSURE FEES ARE ASSESSED AND INSURANCE POLICIES AND CONTACT INFORMATION ARE COLLECTED FOR CONTRACTOR REGISTRATIONS ONLY.
ISSUE PERMITS AFTER VERIFICATION OF CONTRACTOR REGISTRATION.
CONFER WITH RISK MANAGEMENT TO CREATE AN INSURANCE COMPLIANCE CHECKLIST AND TRAIN STAFF ON EVALUATING INSURANCE POLICIES FOR COMPLIANCE WITH THE CITY ORDINANCE ONLY.
GRANT REGISTRATION ONCE CRITERIA ARE MET, IMPLEMENT A TRACKING PROCESS FOR EXPIRING INSURANCE POLICIES.
DEVELOP A POLICY AND PROCEDURES FOR PLACING REGISTRATIONS ON HOLD, INCLUDING CRITERIA DOCUMENTATION AND ESCALATING WARNING MEASURES, AND MAINTAIN AN ONGOING ROSTER THAT'S COMMUNICATED TO ALL STAFF INVOLVED IN THE REGISTRATION PROCESS.
ENSURE APPLICABLE PERMIT AND CONTRACTOR DOCUMENTS ARE STORED IN A CENTRALIZED LOCATION SUCH AS THE CRM SYSTEM MANAGEMENT, PARTIALLY CONCURS ENGINEERING'S.
IN THE PROCESS OF TRANSITIONING TO A NEW SYSTEM, SALESFORCE WITH A PUBLIC FACING PORTAL, I E'S RECOMMENDATIONS WILL BE CONSIDERED DURING THE CONFIGURATION OF THE NEW SYSTEM.
THEY EXPECT THE NEW SYSTEM TO REDUCE THE STAFF TIME SPENT RECORDING PERMIT DATA, TRACK CONTRACTOR REGISTRATION AND REGISTRATION FEES THROUGH REQUIRED CONTRACTOR SUBMITTED FIELDS, TRACK CONTRACTOR INSURANCE EXPIRATION DATES THROUGH REQUIRED CONTRACTOR SUBMITTED FIELDS AUTOMATICALLY NOTIFY CONTRACTORS AND CITY STAFF WHEN REGISTRATIONS OR INSURANCE POLICIES EXPIRE.
FLAG CONTRACTORS WHO HAVE NOT WORKED IN GARLAND FOR AN EXTENDED PERIOD OF TIME AND PREVENT PERMIT ISSUANCE UNTIL REGISTRATIONS RENEWED AND FEES ARE PAID.
ALLOW ENGINEERING TO FLAG CONTRACTORS WHO ARE RESTRICTED FROM WORKING WITHIN A CITY OF GARLAND'S RIGHT OF WAY AUTOMATICALLY UPLOAD PERMIT RECORDS TO ON-BASE FOR PROPER DOCUMENT RETENTION WHILE SYSTEM TRANSITION IS OCCURRING.
ENGINEERING WILL COORDINATE WITH RISK MANAGEMENT TO DEVELOP A REVIEW CHECKLIST AND PROVIDE TRAINING OR ESTABLISH A PROCESS OF SUBMITTING ALL INSURANCE POLICIES TO RISK MANAGEMENT FOR REVIEW.
DEVELOP A STANDARD OF OPPOR, UH, SOP FOR ESCALATING WARNING AND RESTRICTION ACTIONS FOR RIGHT OF WAY CONTRACTORS WHO VIOLATE THE ORDINANCE PERMIT IMPLEMENTATION DATE FOR SALESFORCE STREAM TWO TESTING IS SCHEDULED TO BEGIN SOON WITH SALESFORCE THREE EXPECTED TO BE IMPLEMENTED IN 2028.
MOVING TO THE LAKESIDE PARCEL SUBLEASING PROGRAM.
SO LAKE RAY HUBBARD IN ITS SURROUNDING, UH, TAKE AREAS OWNED BY THE CITY OF DALLAS.
AND IN 2001, THE CITY ENTERED INTO AN INTERLOCAL AGREEMENT WITH THE CITY OF DALLAS TO TAKE THE LEASE AREA ADJACENT TO GARLAND PROPERTIES.
UM, THE CITY OF GARLAND CAN SUBLEASE THE LAND TO RESIDENTIAL AND COMMERCIAL SUBLEASES.
UM, THERE ARE A TOTAL OF 99 PARCELS AS OF 20 26, 32 ARE SUBLEASE TO RESIDENCE, AND THEY'RE ALLOWED TO USE AND OCCUPY THE LAND FOR ANY LAWFUL PURPOSE.
AS PART OF THE SUBLEASE AGREEMENT, SUBLEASE SUBLEASE ARE REQUIRED TO PAY AN INITIAL RENTAL PAYMENT OF $750 AND PROVIDE INSURANCE MEETING SPECIFIC CRITERIA, AND THEN PAY AN ANNUAL ANNUAL RENTAL PAYMENT OF $50 DUE ON OR BEFORE THE BEGINNING OF EACH CALENDAR YEAR.
A TOTAL OF 4,400 IN INITIAL AND ANNUAL RENTAL PAYMENTS WAS COLLECTED OVER THE CALENDAR YEARS, UH, 24 AND 25.
THE CITY'S NOT FULLY RECOUPING THE COST OF THE PROGRAM.
BASED ON OUR INTERVIEWS WITH ENGINEERING, THE ADMINISTRATIVE AND RESOURCES RESOURCE COSTS OF MANAGING THE LAKESIDE PARCEL SUBLEASES DON'T APPEAR TO BE FULLY RECOUPED THROUGH THE COLLECTION OF INITIAL ANNUAL RENTAL PAYMENTS.
UM, INITIAL SETUP FOR THE SINGLE PARCEL IS ON AND ONGOING ANNUAL DUTIES REQUIRES INVOLVEMENT OF STAFF ACROSS SEVERAL DIFFERENT DEPARTMENTS.
THE FEE AMOUNTS HAVE NOT CHANGED SINCE THE CITY BEGAN SUBLEASING THE PARCELS AROUND 2010 ANNUAL RENTAL PAYMENTS ARE RECEIVED LATE.
OUR ANALYSIS OF ENGINEERING'S 2015 TO 2025 PAYMENT TRACKER FOUND THAT ONLY 4% OF TOTAL PAYMENTS DURING THE PERIOD WERE RECEIVED ON OR BEFORE THE DUE DATE.
THIS MAY BE IN PART DUE TO THE ANNUAL NATURE OF THE PAYMENT CYCLE, UM, ALONG WITH THE TIMING OF THE REMINDER LETTERS BEING SENT AFTER THE START OF THE YEAR.
LAKESIDE PARCELS APPEAR TO BE USED WITH THE SUBLEASE WITHOUT A SUBLEASE AND HAVE NO PERMIT FOR THEIR STRUCTURES OR IMPROVEMENTS PER THE AGREEMENT.
SUBLEASES SHALL ABIDE BY THE CITY OF GARLAND'S PERMITTING REQUIREMENTS BEFORE BUILDING ANY STRUCTURE OR MAKING ANY IMPROVEMENT ON THE SUBLEASE PARCEL.
ANY STRUCTURES OVER THE LAKE REQUIRE PRIOR REVIEW AND WRITTEN APPROVAL FROM THE CITY OF GARLAND AND THE CITY OF DALLAS.
SEVERAL LEASE, UH, PARCELS THAT APPEAR TO HAVE STRUCTURES OR IMPROVEMENTS WERE IDENTIFIED USING GOOGLE SATELLITE IMAGES, AND WE FOUND THAT TWO PARCELS WITH EVIDENCE OF USE ARE NOT SUBLEASED WITH THE CITY.
AND TWO OTHER SUBLEASE PARCELS HAVE IMPROVEMENTS WITHOUT CITY PERMITS.
SUBES ARE NOT MEETING INSURANCE REQUIREMENTS.
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TO CARRY COMMERCIAL PUBLIC LIABILITY INSURANCE WITH MINIMUM LIMITS OF $500,000 PER OCCURRENCE AND OTHER CRITERIA.UM, I REVIEWED THE INSURANCE DOCUMENTATION OF ALL ACTIVE SUBLEASES FOR 2025 AND FOUND THAT FIVE PARCELS HAD NO INSURANCE ON FILE.
THE REMAINING 26 INSURANCE POLICIES WERE EXPIRED, HALF OF WHICH EXPIRED IN 2013 OR EARLIER.
23 OF THESE POLICIES WERE FOUND TO NOT BE COMPLIANT WITH THE AGREEMENT CRITERIA PER THE RISK MANAGEMENT DEPARTMENT.
MOST OF THE FAULT POLICIES WERE FOUND TO BE PERSONAL LINES POLICIES RATHER THAN COMMERCIAL PUBLIC LIABILITY COVERAGE.
UM, IA RECOMMENDS THAT MANAGEMENT CONSIDER INCREASING THE INITIAL AND ANNUAL RENTAL PAYMENTS FOR ANY NEW OR EXTENDED SUBLEASES.
SEND REMINDER LETTERS TO SUBLEASE SUBLEASES, UH, EARLY ENOUGH FOR PAYMENTS TO BE SUBMITTED BEFORE THE DUE DATE.
EVALUATE WHETHER THE TWO IDENTIFIED NON SUBLEASE PROPERTIES THAT APPEAR TO BE IN USE NEED TO BEGIN A SUBLEASE.
DETERMINE IF THE TWO IDENTIFIED PARCELS WITH UNPERMITTED STRUCTURES SHOULD RETROACTIVELY OBTAIN APPROVAL FROM THE CITY.
REEVALUATE THE INSURANCE CRITERIA LISTED IN THE SUBLEASE AGREEMENT WITH RISK MANAGEMENT IN THE CITY ATTORNEY'S OFFICE AND UPDATE THE SUBLEASE AGREEMENT ACCORDINGLY.
CITY ADMINISTRATION'S CURRENTLY EVALUATING THE MOST EFFECTIVE AND APPROPRIATE DEPARTMENT FOR MANAGING THE LAKESIDE PARCEL SUBLEASING PROGRAM.
PENDING THIS CHANGE, ENGINEERING WILL WORK WITH THE CITY ADMINISTRATION TO DETERMINE THE FEES REQUIRED TO OFFSET THE ADMINISTRATIVE RESOURCES OF MANAGING THE PROGRAM.
ENGINEERING WILL SEND ANNUAL NOTIFICATION LETTERS IN OCTOBER AND NOVEMBER TO ENCOURAGE COMPLIANCE WITH THE SUBLEASE AGREEMENTS ESTABLISHED DUE DATE OF JANUARY 1ST.
ENGINEERING ENGINEERING REVIEWED HISTORICAL SATELLITE IMAGERY AND AVAILABLE RECORDS TO DETERMINE THE TWO PARCELS THAT APPEAR TO BE USED DO NOT REQUIRE SUBLEASES AS THE USE OF THESE PARCELS BEGAN PRIOR TO THE IMPLEMENTATION OF THE CITY'S SUBLEASING PROGRAM.
NOTE ENGINEERING EVALUATES WHETHER A NON SUBLEASE PROPERTY REQUIRES A SUBLEASE WHEN CONCERNS ARE IDENTIFIED THROUGH COMPLAINTS OR OTHER INQUIRIES.
WHILE ENGINEERING DOES NOT ROUTINELY MONITOR OR INSPECT ALL SUBLEASE PARCELS FOR COMPLIANCE, STAFF REVIEWS PROPERTY SPECIFIC CIRCUMSTANCES AS THEY ARISE TO DETERMINE WHETHER A SUBLEASE IS WARRANTED.
BUILDING INSPECTIONS CURRENTLY WORKING WITH THE CITY OF DALLAS TO PROPERLY PERMIT ONE OF THE PARCELS WITH AN UNPERMITTED IMPROVEMENT AND EVALUATING THE OTHER PARCEL TO DETERMINE IF RETROACTIVE APPROVAL FROM THE CITY IS REQUIRED.
ENGINEERING WILL REEVALUATE THE SUBLEASE INSURANCE CRITERIA WITH RISK MANAGEMENT IN THE CITY ATTORNEY'S OFFICE AND UPDATE THE AGREEMENT AS NEEDED.
IMPLEMENTATION DATE IS ONGOING.
CHAIRMAN? YES, WE'RE GOING REALLY FAST.
DO YOU? IT'S BECAUSE OF THE TIME LIMIT, RIGHT? I'M, I'M JUST WONDERING TOO, UH, IS IT POSSIBLE TO HIT THE TOP LEVELS? YEAH, SO IF I MAY ASK ONE, ONE MAIN ONE LEFT.
YEAH, WE ONLY HAVE, YEAH, WE HAVE ONE.
UM, FOR DRAINAGE PROJECTS, SO UNTIL 2026, THE CITY OFFERED THE DRAINAGE PARTICIPATION PROGRAM IN WHICH PROPERTY OWNERS AGREED IN WRITING TO PAY A SHARE OF THE TOTAL COST OF THE ELECTED DRAINAGE IMPROVEMENT PROJECT.
UM, RESIDENT OWNERS PAID 50% OF THE COST.
UH, NO FURTHER COLLECTION EFFORTS FOR OUTSTANDING PAYMENTS WERE FOUND FOR A COUPLE PROJECTS.
SO IN 2020, UH, INTERNAL AUDIT AUDITED THE PROGRAM AS PART OF THE CIP AUDIT.
UM, WE RECOMMENDED MANAGEMENT PROCESS INVOICES FOR OUTSTANDING REIMBURSEMENTS AND PLACE LIENS ON PROPERTIES WITH UNTIMELY PAYMENTS IN 2023.
THERE WAS A FOLLOW-UP TO THAT AUDIT, AND TWO OWNERS HAD STILL NOT RESPONDED TO THE CITY'S PAYMENT REQUEST, AND NO LIENS HAD BEEN PLACED AS OF THIS AUDIT.
THE SAME TWO PROPERTIES, UM, WITH THE PROJECTS FROM 2016 AND 2017 HAD STILL NOT PAID OR SET UP A PAYMENT PLAN.
AND THIS TOTALED ABOUT $57,000 IN OUTSTANDING REIMBURSEMENTS AND NO LIENS HAVE BEEN FILED BY THE CITY.
SO WE RECOMMEND MANAGEMENT CONSULT WITH THE CITY ATTORNEY'S OFFICE REGARDING THE TWO UNRESPONSIVE PROPERTY OWNERS TO DETERMINE THE BEST APPROACH FOR RECOVERING THE OUTSTANDING REIMBURSEMENTS MANAGEMENT.
CONCURS ENGINEERING'S IN THE PROCESS OF DRAFTING FINAL DEMAND LETTERS TO BE ISSUED TO THE TWO PROPERTY OWNERS.
UH, WE'RE ALSO CONSULTING WITH THE CITY ATTORNEY'S OFFICE TO EVALUATE ALL POTENTIAL COLLECTION OPTIONS AND IMPLEMENTATION DATE IS JULY 31ST, 2026.
WELL, UH, AS YOU'RE AWARE, THE DRAINAGE PARTICIPATION PROGRAM HAS BEEN TERMINATED BY THE CITY AS WELL AS THE ALLEY IMPROVEMENT PARTICIPATION.
WE DID NOT FIND ANY, UM, UM, ALLEY IMPROVEMENT PARTICIPATION DURING THE ODD SCOPE.
THE LAST THING WE LOOKED AT WAS THE REAL PROPERTY IMPROVEMENT AGREEMENT AND LICENSE AGREEMENT.
THERE WERE NO ISSUES THAT WE IDENTIFIED.
SO, UM, I KNOW WE WENT REALLY FAST ON THIS.
I THINK WE'LL TAKE ANY QUESTIONS, AND I'M THINKING TO, UH, COMMITTEE, THESE REPORTS ARE FILED IN THE BOX ACCOUNT AS WELL AS ON TEAMS I BELIEVE SUCH THAT GIVES US OPPORTUNITY BEFORE WE COME TO THE MEETING THAT WE CAN READ THROUGH THEM AND ANY QUESTIONS OR ANYTHING THAT WE MIGHT HAVE, UH, AS IT RELATES TO SOMETHING THAT'S OUTSTANDING, WE CAN ASK OF THOSE.
UH, I'M JUST, UH, CONCERNED THAT IF WE, IF WE TRY TO READ THROUGH EACH ONE OF THOSE, WE PROBABLY WON'T BE ABLE TO GET FINISHED FOR THE NEXT GROUP, BUT UNDER, I DON'T THINK IT'S REALLY NECESSARY TO READ
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THROUGH THEM.UH, I'M OPEN FOR ANY SUGGESTIONS OR ANY THOUGHTS AS IT RELATES TO WHAT I'M SAYING HERE.
I WENT OVER ALL OF THEM PRIOR TO THE MEETING I DID AS WELL.
NOW, TO MY KNOWLEDGE, ARE THERE ANY QUESTIONS? COMMITTEE, SIR, PLEASE GO RIGHT AHEAD.
UM, I DO HAVE A QUESTION ABOUT THE, UM, THE CURRENT CRM THAT BUILDING INSPECTIONS IS USING, OR SORRY, ENGINEERING IS USING.
UM, IS THERE NO WAY TO IMPLEMENT, UM, ONLINE PAYMENTS NOW? SO TO MAKE THAT PROCESS SIMPLER? I KNOW THAT SALESFORCE IS COMING IN, BUT UM, WE HAVE A PRETTY ROBUST IT DEPARTMENT THAT MIGHT BE ABLE TO USE OUR CURRENT SYSTEM TO MAKE THINGS HAPPEN.
WE, WE WORKED WITH IT ABOUT A YEAR AGO TO TRY TO ESTABLISH A PORTAL PAYMENT SYSTEM.
I KNEW THAT BUILDING INSPECTION HAD ONE MM-HMM
AND WE TRIED TO GET IT OFF THE GROUND.
THERE WERE ISSUES WITH THE WAY WE WERE COLLECTING AND THINGS LIKE THAT, THAT WE RAN INTO SOME PROBLEMS AT THE SCOPING.
WE WORKED ON IT FOR A NUMBER OF MONTHS AND WE JUST COULDN'T GET OFF OF HIGH CENTER.
AND THE CONSULTANT THAT WE WERE USING, UM, HAD BOGGED DOWN A LITTLE BIT AND STARTED ON SOME OTHER PROJECT.
AND THEN WHEN THEY CAME BACK TO US, WE WERE ONLY A FEW MONTHS FROM, UM, TRYING TO IMPLEMENT THE, I GUESS THE SECOND PHASE OF SALESFORCE IN THE THIRD PHASE OF SALESFORCE, WHICH SHOULD START HOPEFULLY IN A FEW MORE MONTHS WE'LL BE LOOKING AT.
AND I THOUGHT, WELL, IT'S, IT'S, WE'RE, WE'RE GOING TO SALESFORCE, WHY SPEND THE MONEY ON, ON TRYING TO CREATE THE PORTAL AND CRM WHEN WE'RE GONNA BE GETTING RID OF IT SHORTLY AFTER? AND, AND ALSO FROM A, FROM AN IT PERSPECTIVE, JUST SO YOU'RE AWARE, THIS CRM SYSTEM IS VERY OLD AND IT'S OLD AND IT'S FRAGILE AND IT DOESN'T WORK VERY WELL.
AND THE AMOUNT OF IT EFFORT THAT IT WOULD LIKELY TAKE AND DIVERSION FROM OTHER PROJECTS, TRYING TO GET SALESFORCE UP AND RUNNING FROM THEM FOR THEM TO SOLVE THAT PROBLEM, UH, WAS ONE THAT WE IDENTIFIED THIS PROBABLY TWO YEARS AGO, HOW OLD THE SYSTEM WAS AND HOW DIFFICULT IT WAS.
AND THEY TRY NOT TO MAKE AS MANY CHANGES OR ANY CHANGES IN THAT SYSTEM IF THEY CAN BECAUSE OF HOW OLD AND FRAGILE IT IS.
WE, WE DON'T REALLY HAVE AS THAT IT'S, IT'S DECADES OLD.
I MEAN, IT'S PROBABLY 12 YEARS OLD OR SOMETHING, 15 YEARS OLD MAYBE.
AND, AND SO IT'S NOT A SYSTEM THAT THAT IS EASILY UPDATEABLE.
UH, SALESFORCE, THE GOOD NEWS IS, YOU KNOW, CHANGES IN THE FUTURE AND SALESFORCE ARE MUCH EASIER TO MAKE.
YOU DON'T HAVE TO GO IN AND RECODE THE WAY WE ORIGINALLY IMPLEMENTED THAT SYSTEM, RATHER THAN IMPLEMENTING IT JUST WITH THE FUNCTIONALITY IT HAD.
WE PUT A BUNCH OF CUSTOM SOFTWARE IN IT, WHICH EVERY TIME THEN YOU MAKE ANY CHANGES TO, IT BREAKS ALL THE CUSTOM SOFTWARE.
AND SO THEY MADE THIS SYSTEM TO BE STATIC.
UH, UNFORTUNATELY THAT WAS THE WAY WE DID SOFTWARE BACK IN THE DAY.
AND SO I WOULDN'T RECOMMEND AT THIS TIME THAT WE, UH, IF THIS WAS A MILLION DOLLAR ISSUE OCCURRING, THEN I WOULD SAY, WELL, PROBABLY WORTH THE CITY'S RESOURCES.
THE QUESTION IS HOW DO WE SPEND OUR SCARCE RESOURCES AND, AND I WOULDN'T RECOMMEND IT HERE TO SOLVE THESE PROBLEMS. WE HAVE SOME OTHER WAYS THAT WE CAN SOLVE THESE PROBLEMS IN TERMS OF COLLECTIONS AND MONIES AND THIS SORT OF THING, UH, THAT WE CAN DO WITH RESPECT TO HOW WE ALIGN THE WORK IN DIFFERENT DEPARTMENTS RATHER THAN, THAN TRY AND FIX THIS SYSTEM.
THAT WAS MY RECOMMENDATION, UNDERST.
UM, I HAD SOMETHING ON THE END OF MY MIND AND I CAN'T THINK OF IT NOW.
I APPRECIATE YOUR, SO I UNDERSTAND THE PARTIAL CONCURRENCE ON THAT A LOT.
NO, THAT'S A THOROUGH REPORT AND I, I DON'T HAVE ANY QUESTIONS MOMENT.
THE NEXT AUDIT THAT WE WILL BE COVERING BRIEFLY, UH, IS THE TRAFFIC SIGNAL EQUIPMENT MODERNIZATION PROGRAM.
AS, AS YOU'RE AWARE, BACK IN 2019, AS PART OF THE, UM, PROPOSITION A OF THE CITY'S 2019 BOND PROGRAM, WE HAVE INITIATED THIS MODERNIZATION PROGRAM.
UM, OUR SCOPE FOR THIS AUDIT COVERED OCTOBER, 2020, UM, ONWARDS.
UH, FOR THE FOLLOWING OBJECTIVES, THE FIRST AREA THAT WE WANTED TO REVIEW WAS IF THE, IF THE MONITOR MODERNIZATION PROGRAM IS EFFECTIVELY MONITORED AND PROGRESSING AS INITIALLY PLANNED, WE ALSO WANTED TO VERIFY THE ACCURACY AND TIMELINESS OF REIMBURSEMENT, UM, THAT WE RECEIVED FROM THE EXTERNAL FUNDING SOURCES SUCH AS TECH.
LASTLY, AS PART OF THIS, WE WANTED TO VERIFY MODERNIZATION EQUIPMENT SOFTWARE GOES THROUGH A CYBERSECURITY ASSURANCE PROCESS, AND PHYSICAL AND ELECTRONIC SECURITY MEASURES ARE IMPLEMENTED BY THE CITY.
IN ADDITION TO THAT, WE ALSO, UH, SINCE WE OUTSOURCED THIS EFFORT, UH, TO A THIRD PARTY, WE WANTED TO MAKE SURE THAT OUR CONTRACTOR AS WELL AS SUPPLIER, ARE BILLING AS ACCURATELY AND WE ARE ACCOUNTED FOR,
[00:25:01]
UH, FOR ALL THE MATERIALS.IN ADDITION, WE WANTED TO MAKE SURE THAT THEY WERE MAINTAINING THE INSURANCES AND WARRANTIES IN ACCORDANCE WITH, WITH THE TAMS AND CONDITION OF THE AGREEMENT.
UH, I DO WANT TO THANK PAUL, UH, UH, AND DAVE TIM PEREL.
UM, THEY'RE DOING AN EXCELLENT JOB IN MONITORING THIS PROGRAM.
YOU'RE GONNA HEAR A LOT OF GOOD POSITIVE OBSERVATION DURING THIS AUDIT.
UM, THEY'RE ON TOP OF THESE ITEMS, I BELIEVE WE HAVE ABOUT 203 INTERSECTIONS BY NOW.
THEY'RE ALREADY COMPLETED 125 OF 'EM, SO GREAT JOB, UH, FROM THEIR PART.
ZACH DID THIS AUDIT, SO I'M GOING TO TURN THIS OVER TO HIM AND WE'RE NOT GONNA GO LINE BY LINE IN THIS.
WE'RE GONNA SUMMARIZE IT AND WE'LL GO OVER.
WE'LL GET THROUGH THIS QUICKLY.
UH, SO LIKE, UH, JED WAS SAYING THIS IS ABOUT THE TRAFFIC SIGNAL MODERNIZATION.
UH, PROGRAM WITH THIS PROGRAM IS MANAGED BY THE TRANSPORTATION DEPARTMENT.
UH, LIKE JED SAID, THERE ARE 203 SIGNAL AS INTERSECTIONS IN THE CITY.
THEY'VE GONE THROUGH ABOUT 125 OF THEM.
UH, THE TOTAL PROJECT COST, UH, SO FAR IS AROUND $5.8 MILLION.
SO THEY UTILIZE A CONTRACTOR TO DO MAJORITY OF THE WORK THEY'VE HAD, UH, THIS AUDIT SPAN, THE USE OF ONE CONTRACTOR, AND IT'S THE CONTRACTOR STILL BEING USED FOR THE PROGRAM.
MAJORITY OF THE MATERIALS USED IN THE PROGRAM ARE, UM, ACQUIRED BY THAT CONTRACTOR.
UH, ALTHOUGH THE CITY DOES PROCURE A FEW OF THE, UM, ITEMS, UH, MAINLY THE CABINETS AND THE CONTROLLERS, WHICH ARE THE BRAINS OF THE, OF THE UNITS.
UM, ALRIGHT, SO WE JUST HAVE A BRIEF TABLE THERE SHOWING THE, THE TIMELINE OF THE WORK ORDERS GETTING COMPLETED.
AND AS JED SAID, AGAIN, THE 125 OF THE SIGNALS HAVE BEEN MODERNIZED NOW FOR OUR OBSERVATIONS.
SO AS FAR AS THE INVOICE AND BILLING ACCURACY, WE LOOKED AT EVERY SINGLE INVOICE, UH, FOR THE CONTRACTOR, WHICH WAS ABOUT $4 MILLION WORTH.
WE FOUND THAT ALL LINE ITEMS WERE BEING BILLED AT THE CORRECT RATES.
UM, RETAINAGE PAYMENTS WERE CALCULATED ACCURATELY.
UH, THEIR MOBILIZATION, WHICH IS THEIR UPFRONT 5%, WAS APPROPRIATELY ADJUSTED AS THE WORK ORDER VALUES INCREASED OR DECREASED AND ITEMS PURCHASED FROM THE SUPPLIER, WHICH WE ALSO REVIEWED THE SUPPLIER INVOICES FOR THOSE CABINETS AND CONTROLLERS, UM, WERE ACCOUNTED FOR AND INVOICES WERE PROPERLY PAID.
UH, WE ALSO LIKE TO MENTION THAT THE TRANSPORTATION OPERATIONS ADMINISTRATOR, UH, IS DOING A VERY GOOD JOB, UH, AT OP AT MANAGING THIS PROGRAM.
UM, AS WELL AS, YOU KNOW, THE PLANNING, THE BUDGETING AND THE CONTRACT ADMIN ADMINISTRATION.
SO WE LOOKED AT WORK ORDER, COMPLETION, TIMELINE, UH, TIMELINESS, SORRY.
UM, BASED ON THE TYPE OF WORK ORDER, THEY GET A SET AMOUNT OF TIME TO COMPLETE BASED ON HOW MANY INTERSECTIONS, WHAT KIND OF WORK IT IS.
WE FOUND THAT, UM, WE TESTED 11 OF THE WORK ORDERS OUT OF 18.
NINE OF THEM WERE COMPLETED ON TIME OR AHEAD OF SCHEDULE.
TWO OF THEM WERE VARIED, UH, SHORTLY OVER THE TIME LIMIT, BUT THAT'S DUE TO, UM, HANDLING MULTIPLE WORK ORDERS AT ONCE OR OTHER EMERGENCIES POPPING UP.
SO IT, IT'S REASONABLE THAT THEY WENT OVER THOSE TWO.
UH, IN ADDITION TO THAT, THEY'VE SECURED SOME FUNDING FROM EXTERNAL SOURCES SUCH AS TXDOT, AND WE FOUND THAT, UH, FROM TDOT, THE THEY'VE APPROPRIATELY REQUESTED ALL REIMBURSEMENTS ELIGIBLE AND THEY'VE RECEIVED THAT MONEY FOR THOSE.
AND IN ADDITION TO THAT, THEY TOOK ADVANTAGE OF SOME MONEY WE HAD LEFT OVER FROM THE SAFE FLIGHT PROGRAM AND WERE ABLE TO APPLY THAT TO THIS, UM, AS WELL IN ABOUT 240 5K.
NEXT UP, POTENTIAL FUNDING SOURCES.
WE HAVE, UH, TWO DIFFERENT TYPES OF HIGHWAYS THAT GO THROUGH GARLAND.
WE HAVE THE CONTROLLED ACCESS ONES, WHICH ARE YOUR 6 35 IH 30, UH, GEORGE BUSH.
SO UNLESS THERE'S A SEPARATE AGREEMENT, THOSE ARE TO BE MAINTAINED BY TXDOT.
HOWEVER, WE DO HAVE A SEPARATE AGREEMENT AND WE MAINTAIN 17 OF THOSE INTERSECTIONS.
UM, AND WE DO RECEIVE REIMBURSEMENT.
THERE ARE TWO NEW INTERSECTIONS THAT ARE BEING, UH, BUILT AS PART AS THE 6 35 EXPANSION PROJECT.
AND MANAGEMENT SAID THAT THEY WILL REQUEST A SUPPLEMENTAL AGREEMENT TO THAT TEXTILE AGREEMENT WHENEVER THOSE ARE COMPLETED.
SO WE CAN RECEIVE REIMBURSEMENT FOR THOSE AS WELL.
UH, THE OTHER TYPE OF HIGHWAY IS NON-CONTROLLED ACCESS.
THESE ARE YOUR, UH, STATE HIGHWAY 78 AND 66.
AND AS FAR AS THOSE GO, THE CITY IS RESPONSIBLE FOR MAINTAINING THOSE UNLESS THERE'S A SEPARATE AGREEMENT.
WE DID HAVE ONE OTHER AGREEMENT, UM, FOR THE INTERSECTIONS OF 78 AT MILLER AND KINGSLEY.
SO THE AGREEMENT WE HAVE WITH TXDOT PERMITS US TO ENTER INTO THESE SUCH AGREEMENTS.
AND AS EACH INTERSECTION COSTS APPROXIMATELY A HUNDRED THOUSAND DOLLARS, UH, WE JUST ENCOURAGE, UH, THAT THEY CONTINUE TO SEEK, UH, FEDERAL, STATE GRANTS COUNTY FUNDING AND PARTNERSHIPS TO HELP OFFSET THIS EXPENDITURES.
SO THAT'S WHAT WE RECOMMENDED.
AND THEY CONCUR AND THEY GO ON TO STATE ABOUT HOW THEY, THEY ACTIVELY PURSUE THIS FUNDING.
UM, AND THEY GO ON TO, UH, CERTAIN GRANTS THAT THEY'VE RECEIVED
[00:30:01]
AS WELL AS, UM, I'D LIKE TO POINT OUT THAT THEY HAVE TO DATE RECEIVED AROUND $40 MILLION FOR THE SHILOH ROAD.UM, YOU KNOW, EXPANSION WIDENING PROJECT THERE.
ALRIGHT, INSURANCE AND BOND REQUIREMENTS.
UM, AS PART OF THE, UM, AGREEMENT THAT WE HAVE WITH THE CONTRACTOR, THERE'S SET INSURANCES THEY'RE SUPPOSED TO HAVE, UH, FOR THESE CERTIFICATES OF INSURANCE.
THEY HAVE, THEY HAD ALL OF THOSE COVERED.
THEY EVEN HAD ABOVE THE LIMITS ON SOME OF THEM.
IN ADDITION TO THESE THOUGH, THE CONTRACT DOCUMENTS HAD TWO SEPARATE TYPES OF, UH, THEY HAD A BOND AND A, UH, LET ME SEE, A MAINTENANCE BOND AND A PROFESSIONAL LIABILITY INSURANCE.
UH, NEITHER OF THOSE THE CONTRACTOR CARRIED, AND THOSE ARE JUST ON THERE DUE TO USING KIND OF A, A BOILER PLATE OR A TEMPLATE USED BY PROCUREMENT, ALTHOUGH THAT DID LEAD TO CONFUSION AS TO WHETHER OR NOT THEY NEEDED TO CARRY THAT.
UM, SO I RECOMMENDED THAT MANAGEMENT SHOULD WORK WITH RISK MANAGEMENT AND PROCUREMENT TO DETERMINE WHETHER OR NOT THEY NEEDED THAT, UM, INSURANCE AND CONSIDER IMPLEMENTING PROCEDURES TO VERIFY THAT ALL REQUIRED INSURANCE COVERAGES, UM, REQUIRED BY THESE CONTRACTS ARE OBTAINED, MAINTAINED THROUGHOUT THE CONTRACT.
TERM MANAGEMENT CONCURRED AND THE TRANSPORTATION DEPARTMENT WILL WORK WITH RISK MANAGEMENT AND PROCUREMENT TO ASSIST THEM IN REVIEWING REQUIREMENTS OF THE INSURANCE AND BONDING, AS WELL AS IMPLEMENTING VERIFICATION PROCEDURES AND IMPLEMENTATION.
DATE ON THAT IS DECEMBER, 2026.
ALRIGHT, SOFTWARE ACCESS RIGHTS.
UH, THE DEPARTMENT UTILIZES THE SOFTWARE TO MANAGE THEIR, THE SIGNALS THROUGHOUT THE CITY.
WE REVIEWED ALL THE USERS, WE FOUND THAT ALL THE USERS WITHIN THE SYSTEM, THEY ALL HAD APPROPRIATE ACCESS.
THERE WAS ONE GENERIC ACCOUNT, UM, WHICH CAN BE USED, YOU KNOW, BY ANYONE IN THE DEPARTMENT.
WE RECOMMENDED THAT MANAGEMENT SHOULD CONSIDER REVIEWING THE NECESSITY OF THIS GENERIC ACCOUNT AND IF NO LONGER NEEDED, CONSIDER DEACTIVATING THE ACCOUNT MANAGEMENT CONCURRED AND THE TRANSPORTATION DEPARTMENT IS WORKING WITH THE VENDOR TO DETERMINE IF THIS ACCOUNT CAN BE DEACTIVATED.
AND IMPLEMENTATION DATE ON THAT IS AUGUST 20, 26.
THEY UTILIZE A WORK ORDER SYSTEM, UH, TO TRACK ALL THEIR INTERNAL WORK, UH, WITHIN THE DEPARTMENT.
AND, UM, THIS IS ALSO JUST USED TO TRACK THE, THE ASSETS AGE, UH, WHAT EQUIPMENT'S IN PLACE, UH, FOR THIS, UH, PROGRAM? SINCE IT'S HANDLED BY A THIRD PARTY CONTRACTOR, IT IS ACTUALLY TRACKED SEPARATELY IN A SPREADSHEET.
UH, SO WE'RE, WE'RE NOT CAPTURING ALL THE MOST ACCURATE UPTODATE INFORMATION WITHIN THAT, UH, ASSET MANAGEMENT SYSTEM.
WE RECOMMENDED THAT THEY SHOULD CONSIDER DOCUMENTING, UM, THIS INTERSECTION EQUIPMENT REPLACED BY THE CONTRACTOR WITHIN THE WORK ORDER SYSTEM.
SO THAT WAY IT IS A COMPLETE RECORD, UH, MANAGEMENT CONCURRED AND BEGINNING WITH THE CURRENT MODERNIZATION WORK ORDERS, TRANSPORTATION STAFF WILL BEGIN, UH, DOCUMENTING THIS WORK WITHIN THE SYSTEM WITH AN IMPLEMENTATION DATE OF APRIL, 2027.
ANY QUESTIONS? ACTUALLY I HAVE, I'M SORRY.
UM, ARE, IS TRANSPORTATION IMPLEMENTING SALESFORCE AS WELL SOMETIME IN THE FUTURE? NO.
ONLY AS PART OF THE, THE, THE DEVELOPMENT REVIEW.
UH, SOUNDS LIKE, UH, YOU DIDN'T HAVE A LOT OF PROBLEMS THERE AT ALL.
NO, AND THAT, AND THAT SPEAKS TO DAVE.
DAVE'S DOING A GREAT JOB OF MANAGING THE WORK ORDERS AND THE, AND THE RELATIONSHIP WITH THE CONTRACTOR.
I THINK, YOU KNOW, HE'S DOING A VERY GOOD JOB THERE.
THE NEXT AUDIT, UH, IS THE GARLAND VISITOR CENTRAL AUDIT.
UM, AS YOU'RE AWARE, UM, THIS IS A SMALL OPERATION, BUT A VERY IMPORTANT OPERATION.
IT'S A PUBLIC FACING OPERATION AND THAT'S WHY WE, UH, WE CHOSE TO, UH, TO CONDUCT AN AUDIT IN THIS AREA.
UH, ONCE AGAIN, DANA AND LACEY, THEY WERE, UH, EXCELLENT WORK WITH, THEY WERE VERY OPEN, UM, FOR, FOR OUR DISCUSSIONS AND OPPORTUNITIES FOR IMPROVEMENT.
THEY'RE RUNNING THAT PLACE EXTREMELY WELL, UM, THAT THEY ALWAYS SMILE
SO THAT ITSELF IS VERY WELCOMING AND, AND EVEN A LOT OF OUR AUDIT DISCUSSIONS WHERE WE WERE LAUGHING, UM, FOR THE MOST PART WE WERE SERIOUS, BUT WE WERE, WE WERE LAUGHING.
YEAH, OUR FIRST OBJECTIVE WAS TO DETERMINE WHETHER ADEQUATE CONTROL EXISTS OVER CASH HANDLING AND PAYMENT PROCESSING.
SECONDLY, WE WANTED TO VERIFY WHETHER THE MERCHANDISE PROCURED IS PROPERLY, EFFECTIVELY TRACKED AND SAFEGUARDED.
THOSE WERE THE TWO MAIN OBJECTIVES.
OUR SCOPE, UH, WAS FROM OCTOBER, 2023 THROUGH SEPTEMBER, 2025.
SO I DO WANNA MENTION ONE THING BEFORE I TURN THIS OVER TO J.
BEFORE WE EVEN DID THIS AUDIT,
[00:35:01]
THEY WENT AHEAD AND READ THE FIRE WHEEL, UH, AUDIT THAT WE DID, CASH HANDLING AND INVENTORY AUDIT AND WHATEVER THEY COULD IMPLEMENT IN IN THEIR FACILITY, THEY DID IT.UM, SO THAT SHOWS HOW MUCH PROACTIVELY THEY THINK OF.
IT'S NOT BECAUSE THEY KNEW AN AUDIT WAS COMING, IT'S BECAUSE THEY WANTED TO RUN THEIR OPERATIONS SMOOTHLY AND THEY ALSO CARED FOR THE ACCOUNTABILITY OF THE ITEMS THAT THEY PROCURE OVER THERE.
UH, AGAIN, WE WILL NOW READ, UH, EVERY LINE, BUT WE'LL SUMMARIZE THE OBSERVATIONS.
SO AS WE KNOW, CONVENTION AND VISITOR BUREAU OPERATES GARLAND VISITOR CENTER, UM, AND ITS PRIMARY PUBLIC FACING LOCATION, PROVIDING VISITORS WITH INFORMATION, PROMOTIONAL MATERIALS, MERCHANDISE AND ENGAGEMENT OPPORTUNITIES THAT SUPPORT TOURISM AND COMMUNITY OUTREACH INITIATIVES.
UM, VISITOR CENTER ALSO SUPPORTS DOWNTOWN GARLAND AND ITS EVENTS AND IS INTENDED TO SHOWCASE SMALL BUSINESS MUSEUM BOUTIQUES, GALLERIES, LOCAL ARTISANS AND CREATIVES.
THE VISITOR CENTER PROCESSED OVER $78,000 IN MERCHANDISE SALE OVER THE AUDIT SCOPE, UH, 2024 AND THROUGH 2025, BASED ON RESULTS FROM AN UNANNOUNCED CASH COUNT AND TWO MONTH RECONCILIATION BETWEEN THE POINT OF SALE SYSTEM AND GENERAL LEDGER BANK STATEMENTS, UH, I DETERMINED ADEQUATE CONTROL EXIST OVER CASH HANDLING AND PAYMENT PROCESSING.
WE ALSO NOTED, NOTED THE FOLLOWING POSITIVE ACTIONS TAKEN BY VISITOR CENTER.
AS JUDD SAID, UH, PRIOR TO THE AUDIT, VISITOR CENTER DID IMPLEMENT A LOT OF INVENTORY VERIFICATION PROCEDURES BASED ON THE AUDIT RECOMMENDATION FROM FIRE WHEEL GOLF FOREST OPERATIONS.
DURING THE AUDIT MANAGEMENT COORDINATED WITH THE CITY MARSHAL'S OFFICE TO PROVIDE VIDEO SURVEILLANCE OF THE VISITOR CENTER BY AN ON-DUTY DEPUTY.
AND THE VISITOR CENTER SUPERVISOR UTILIZES HER RETAIL EXPERTISE AND EXPERIENCE TO PROACTIVELY ENHANCE OPERATIONS.
SOME OF THE OBSERVATIONS, UH, FOR MERCHANDISE FOR SALE, THE GARLAND VISITOR CENTER SELLS GARLAND AND TEXAS INSPIRED MERCHANDISE TO RESIDENTS, VISITORS, AND OTHER CUSTOMERS.
YOU KNOW, IT INVOLVES, UH, BOARD GAMES, APPAREL, POSTCARDS AND THINGS LIKE THAT.
UM, BASED ON INTERNAL AUDITS, REVIEW OF VISITOR CENTERS OPERATION, ADDITIONAL CONTROLS AND DOCUMENTATION WILL STRENGTHEN ACCOUNTABILITY OVER MERCHANDISE, PROMOTIONAL ITEMS, DISCOUNT SYSTEMS AND STORAGE AREA MONITORING SEGREGATION OF DUTIES.
THE VISITOR CENTER IS A SMALL OPERATION WITH THE LIMITED STAFF, WHICH CAN MAKE IT DIFFICULT TO FULLY SEGREGATE DUTIES.
INTERNAL AUDIT NOTED THAT GENERALLY THE SAME EMPLOYEES ORDERING, PAYING FOR, PAYING FOR RECEIVING AND RECORDING MERCHANDISE IN THE SYSTEM AS WELL AS PERFORMING INVENTORY RELATED DUTIES.
ADDITIONALLY, THE MENTIONED EMPLOYEE HAS ADMINISTRATIVE ACCESS TO THE POS COMPENSATING CONTROLS SUCH AS SECONDARY VERIFICATION OR PERIODIC REPORTING TO MANAGEMENT HAVE NOT BEEN ESTABLISHED FOR THE PURCHASE PAYABLE CYCLE.
ACCESS RIGHTS ACCESS CONTROL HELP ENSURE USERS ONLY HAVE SYSTEM PERMISSION NECESSARY TO PERFORM THEIR ASSIGNED JOB DUTIES DURING THE REVIEW OF SYSTEM ACCESS.
INTERNAL AUDIT DETERMINED THAT 12 OF 13 HAVE BROAD SYSTEM ACCESS THAT ALLOWS THEM TO MAKE PRICE ADJUSTMENT, COST ADJUSTMENTS, VOID, CANCEL TRANSACTION, AND ADJUST INVENTORY QUANTITIES.
PHYSICAL SECURITY, THE VISITOR CENTER KEEPS ACCESS MERCHANDISE AND PROMOTIONAL ITEMS IN OFFSITE STORAGE ROOM.
THE ROOM HAS A KEY LOCK AND THE SINGLE KEY IS SHARED AMONG ALL VISITORS CENTER EMPLOYEES.
THERE ARE NO ELECTRONIC KEY CARD ACCESS OR A LOG TO TRACK WHO UNLOCKS THE ROOM AND THERE ARE NO SURVEILLANCE CAMERAS.
UM, DISCOUNT DOCUMENTATION, VISITOR CENTER SALES STAFF MAY SELL MERCHANDISE AT A DISCOUNT RATES OF 25% FOR THIS, UH, CONVENTION AND VISITOR BUREAU EMPLOYEES AND 10% FOR ALL OTHER CITY EMPLOYEES.
UM, INTERNAL AUDIT FOUND THAT A HUNDRED SIXTEEN A HUNDRED SIXTY NINE TRANSACTION INCLUDED EMPLOYEE ID NUMBERS.
HOWEVER, 122 OF THOSE TRANSACTIONS WERE RECORDED ONLY WITH GENERIC DESCRIPTIONS SUCH AS CONVENTION VISITOR BUREAU, OR CITY GARLAND EMPLOYEE, NEITHER OF THEM, WHICH ALLOW MANAGEMENT TO VERIFY THE LEGITIMACY OF THE DISCOUNT.
UH, RECOMMENDATIONS MANAGEMENT SHOULD DETERMINE IF ANY PURCHASE PAYABLE CYCLE DUTIES CAN BE SEGREGATED WITH THE AVAILABLE STAFF.
AT MINIMUM, ADOPT COMPENSATING CONTROLS SUCH AS PERIODIC SECONDARY VERIFICATION RECONCILIATION, AS WELL AS REPORTING TO MANAGEMENT OF ITEMS, ORDERED RECEIVED AND SYSTEM ACTIVITIES.
UH, EVALUATE CURRENT ACCESS RIGHTS, TERMINATE, REDUCE, UH, TO APPROPRIATE LEVEL BASED ON EACH EMPLOYEE'S JOB DUTIES.
PERIODICALLY PERFORM AND DOCUMENT REVIEWS OF ACCESS RIGHTS, IMPLEMENT APPROPRIATE SECURITY MEASURES FOR ACCESS MERCHANDISE AND PROMOTIONAL ITEMS. AND LASTLY, ENSURE EMPLOYEE ELIGIBILITY IS VERIFIED AND DOCUMENT
[00:40:01]
EMPLOYEE IDS AND THE POS FOR EMPLOYEE DISCOUNTS MANAGEMENT RESPONSE.PARTIALLY CONCUR INVENTORY COUNTS HAVE BEEN SEGREGATED.
A THIRD SECOND BALANCE WILL BE IMPLEMENTED FOR YEAR-END INVENTORY.
ADDITIONALLY, A QUARTERLY LOG OF ITEMS PURCHASED HAS BEEN PROVIDED TO MANAGEMENT.
MANAGEMENT WILL CONDUCT PERIODIC SPOT CHECK.
UH, IT'LL BE IMPLEMENTED SEPTEMBER 30, 20, 26 POINT OF SALE.
ACCESS RIGHTS ARE NEEDED TO PROVIDE SERVICE TO CUSTOMERS WHEN MANAGED ARE OFFSITE.
CURRENTLY A NEW POS SYSTEM IS BEING EXPLORED WITH THE HOPE THAT PERMISSIONS CAN BE MORE RESTRICTIVE WHILE STILL ALLOWING STAFF TO HANDLE NECESSARY TRANSACTIONS.
MANAGEMENT WILL PERFORM PERIODIC REVIEWS OF POS RIGHTS IMPLEMENTATION.
NOT POSSIBLE AT THIS TIME DUE TO SYSTEM LIMITATION.
LOGIN SHEET FOR STORAGE WILL BE IMPLEMENTED IMMEDIATELY.
UH, STAFF TRAINING REMINDERS TO INCLUDE EMPLOYEE ID NUMBERS WILL OCCUR IMMEDIATELY.
UH, LASTLY, PROMOTIONAL ITEMS. THE VISITOR CENTER ORDERS PROMOTIONAL ITEMS THAT MAY BE USED FOR SUPPORT, TOURISM, VISITOR ENGAGEMENT, COMMUNITY EVENTS, MARKETING EFFORTS, AND OTHER CITY RELATED PURPOSES.
UNLIKE TYPICAL MERCHANDISE, UH, ITEMS PURCHASED FOR PROMOTIONAL ITEMS ARE NOT RECORDED WITHIN AN INVENTORY SYSTEM.
PROMOTIONAL ITEMS ARE ONLY DOCUMENTED IN THE SYSTEM WHEN THE ITEMS ARE ORIGINALLY PURCHASED TO SELL AT THE VISITOR CENTER AND LATER PULLED FROM THE MERCHANDISE INVENTORY.
VISITOR CENTER'S EXISTING MANUAL SPREADSHEET TRACKER FOR PROMOTIONAL ITEMS WAS UPDATED.
HOWEVER, INTERNAL AUDIT FOUND THAT NOT ALL PROMOTIONAL ITEMS ARE CAPTURED.
UM, AND OF THE CAPTURED ITEMS, THE QUANTITIES ARE ESTIMATED.
DOES A TOTAL VALUE OF PROMOTIONAL ITEMS COULD NOT BE DETERMINED.
ADDITIONALLY, THERE'S NO ACTIVITY LOG WHEN PRO PROMOTIONAL ITEMS ARE REMOVED.
RECOMMENDATIONS MANAGEMENT SHOULD CONSIDER RECORDING AT LEAST HIGH VALUE PROMOTIONAL ITEMS, UH, DETAIL WITH THE WITHIN THE INVENTORY SYSTEM TO INCLUDE QUANTITIES RECEIVED, QUANTITIES REMOVED, REASONS FOR REMOVAL, AND WHO WILL PERFORM THE ACTION MANAGEMENT RESPONSE.
THE VISITOR CENTER MANAGES MANAGER ORDERS THE PROMOTIONAL PRODUCTS DUE TO HER VENDOR RELATIONSHIP WITH THE MANAGEMENT.
UH, OF THESE PRODUCTS SHOULD FALL UNDER VISIT GARLAND'S MARKETING TEAM, A POINT PERSON FOR THIS TRACKING HAS BEEN IDENTIFIED ALONG WITH THE LESS THAN 10 VALUE.
HIGH ITEMS WILL BE INVENTORIED MOVING FORWARD.
UH, IMPLEMENTATION DATE IMMEDIATELY, NO, THAT COMMITTEE, YOU'VE HEARD THE REPORT.
ANY QUESTIONS, COMMENTS? I WOULD LIKE TO GO BACK TO, UH, YOUR, UH, ACTION PLAN.
I THINK IT'S ON PAGE EIGHT WHERE WE SAY THAT MANAGEMENT PARTIALLY CONCURS.
CAN YOU SPEAK TO WHAT, UH, TOOK PLACE THERE ON THE PARTIAL CONCUR? YEAH, IT'S MAINLY WITH THE ACCESS RIGHTS.
UM, THEY CAN'T IMPLEMENT A LOT OF, UH, ADDITIONAL SECURITY FOR THE ACCESS RIGHTS 'CAUSE OF THE SYSTEM THEY'RE ON RIGHT NOW.
THEY ARE PLANNING TO MOVE TO A NEW SYSTEM IN THE COMING MONTHS, SO THAT'S WHY THERE WAS A PARTIALLY CONCUR.
HOW ARE YOU? UM, SO IT'S INTENTIONAL THAT THE POS SYSTEM IS SET THE WAY IT IS SO THAT THE EMPLOYEES THAT ARE WORKING CAN HANDLE A RETURN IF NEEDED.
UM, IT'S REALLY AN IMPOSSIBILITY FOR OUR MANAGER TO BE IN THE STORE AT EVERY OPENING HOUR AND WE WOULD NOT WANT TO SEND SOMEBODY AWAY AND SAY, COME BACK, WE CAN DO A RETURN FOR YOU TOMORROW.
SO THE WAY THE SETTING IS, IS IT EITHER GIVES YOU THOSE PERMISSIONS OR IT DOESN'T.
UM, SO WE INTENTIONALLY ARE LEAVING IT AS IT IS SET CURRENTLY, HOPING THAT POSSIBLY THE NEW POS SYSTEM WILL GIVE US A LITTLE BIT MORE, UM, STRINGENT SETTINGS THAT CAN, CAN HELP US IN THAT REGARD.
BUT THIS IS A SINGLE FULL-TIME EMPLOYEE LOCATION, UM, AND WE HAVE TO EMPOWER OUR EMPLOYEES TO BE ABLE, YOU KNOW, TO TAKE CARE OF FOLKS IF THEY COME IN AND NEED SOMETHING.
AND, AND THAT'S WHY I CONCUR THAT IT IS SET THAT WAY.
BUT I ALSO CONCUR, YOU KNOW, IN SAYING IT'S INTENTIONAL AND THE NEW SYSTEM, WE'RE HOPEFUL THAT WE'LL BE ABLE TO GET ONE.
WE'RE STILL WORKING THROUGH THAT PROCESS.
THAT CAN GIVE US A LITTLE BIT MORE, UH, FLEXIBILITY TO, UM, MAYBE MANAGE THAT MORE CAREFULLY.
CHAIRMAN, IF I, I MAY ADD SOMETHING TO WHAT DANA SAID, THE CURRENT SYSTEM, EITHER YOU SET IT UP WITH FULL ACCESS OR VERY
[00:45:01]
LITTLE ACCESS.YEAH, IT'S, THERE'S NO IN-BETWEEN AND I THINK THAT'S WHERE THERE, WHAT DANA WAS SAYING WITH THE NEW SYSTEM, YOU CAN SET IT UP, YOU KNOW, MAYBE YOU DON'T WANT TO GIVE SOMEBODY ACCESS TO CHANGE THE PRICE IN THE SYSTEM, BUT YOU CAN GIVE 'EM ACCESS TO REFUND SOMETHING AND THEY'LL HAVE MORE FLEXIBILITY WITH THE NEW SYSTEM AND YOU'RE PRETTY SATISFIED WITH THAT PROCESS.
YEAH, I MEAN, IT'S A PUBLIC FACING, UH, YOU DON'T WANT YOUR CUSTOMER, I KNOW MIKE BETS OUR CITY MANAGER IS WILLING TO
AND JUST JUST FOR CONTEXT, WHAT'S A TOTAL VOLUME OF SALES YOU DO IN TWO $35,000 ANNUAL? SO THIS IS, WE DON'T HAVE NOW, I MEAN, EVERY PENNY COUNTS.
WE HAVE TO, WE HAVE, WE HAVE TO BE VERY CIRCUMSPECT BEFORE WE WIND UP SPENDING FIVE OR 10 OR $15,000 TO FIX THE SYSTEM.
WHEN WE SELL $35,000 OF MERCHANDISE AND THE PROFIT WE MAKE OFF OF THAT MERCHANDISE IS VERY LOW.
WE, AND SO YOU'RE TALKING ABOUT YOU, YOU HAVE TO BE CAREFUL IF YOU WERE, IF YOU WERE ACTUALLY RAN A BUSINESS OF THAT SIZE AND YOU TOLD SOMEBODY YOU'RE GONNA SPEND $10,000 OR $5,000 TO FIX A SYSTEM LIKE THIS, THEY'D LOOK AT YOU AND ASK YOU IF YOU NEEDED YOUR HEAD EXAMINED.
AND SO YES, WE'RE DEALING WITH PUBLIC EMPLOYEES AND THE PUBLIC FACING REPUTATION, BUT WE ALWAYS HAVE TO BE MINDFUL OF, ARE WE SOLVING A, ARE WE KILLING A, A GNAT WITH A A HUNDRED POUND SLEDGEHAMMER? AND, AND WE DON'T WANNA DO THAT.
UH, NOT WITH THE PUBLIC MONEY.
SO, AND, AND THAT'S ANOTHER REASON WHY THE SEGREGATING IS A LITTLE BIT, UM, ACCEPTABLE IN THE FACT THAT IT IS NOT A HUGE AMOUNT AND IT IS ONLY ONE FULL-TIME EMPLOYEE.
SO YES, THAT EMPLOYEE IS ORDERING THE PRODUCT, BRINGING, UH, IT INTO THE SYSTEM, ADDING IT TO THE POS BECAUSE THAT, THAT'S WHY IT'S NOT SEGREGATED BECAUSE THE COST TO HAVE A SECOND EMPLOYEE TO DO THAT WOULD BE WAY MORE THAN 35 WITHOUT, WITHOUT BELABORING THE POINT I DID POINT OUT TO, UH, TO OUR AUDITOR THAT MY ICE CREAM MAN WHEN I WAS GROWING UP PROBABLY DID LARGER VOLUMES AND HE HAD THE SIMILAR PROBLEM.
THERE WAS ONE GUY ON THE TRUCK WHO ORDERED THE ICE CREAM, PUT IT AWAY AND ACCOUNTED FOR IT BECAUSE THE NOTION OF HAVING A SECOND GUY ON THE TRUCK WHO DID THAT JUST WASN'T GONNA MAKE SENSE IN THE COST OF ICE CREAM WE HAD.
AND, AND THAT'S THE PROBLEM WE HAVE HERE.
AND I JUST WANNA MAKE THAT CLEAR TO THE COMMUNITY THAT THAT'S, YEAH, YES, IT'S A PROBLEM, BUT IT'S A RESULT OF A SMALL NUMBERS PROBLEM THAT WE HAVE IN AN OPERATION THAT WE'RE RUNNING, RUNNING REALLY TO BRING FOCUS TO THE SQUARE AND LET PEOPLE BUY SOUVENIR ITEMS FROM THE SQUARE AND NOT ACTUALLY AS A BUSINESS TO MAKE MONEY.
IT JUST WOULD NOT HAVE BEEN RIGHT TO HAVE THIS DISCUSSION AND NOT HEAR FROM OUR CITY MANAGER.
AS AN AUDITOR, I HAD TO ASK MIKE, HOW MANY FREE ICE CREAM CORNS DID YOU GET? I, YEAH, RIGHT
YEAH, I GOT QUITE A BIT OF UNTIL THE AUDITOR CAUGHT ON THAT THAT WAS HAPPENING AND THEN IT STOPPED IMMEDIATELY.
YEAH, CHAIRMAN, UH, AGAIN, ONCE AGAIN.
NEXT TWO ITEMS THAT WE'RE GONNA DISCUSS, UH, ARE, UH, FOLLOW UPS MANAGEMENT REPORTS COMING BACK FROM SOME OF OUR PREVIOUS AUDITS, YOU MAY REMEMBER BACK IN, UH, APRIL 8TH TO 2025, UH, WE ISSUED THE MUNICIPAL WASTEWATER TREATMENT AGREEMENT AUDIT REPORT TO THE AUDIT COMMITTEE AT THAT POINT.
UM, AFTER OUR BRIEFING, THE COMMITTEE REQUESTED MANAGEMENT TO PROVIDE, UM, AN UPDATE ON THE STATUS OF RE IMPLEMENTATION OF RECOMMENDATIONS.
BRIEFLY, AS YOU MAY RECALL, WE DO HAVE THE CITY HAS AGREEMENTS TO TREAT, UM, WASTEWATER FOR WITH ETTE RICHARDSON, SUNNYVALE, SAXE, DALLAS COUNTY MUD NUMBER FOUR, AS WELL AS DALLAS FOUR OF WHOM WE FULLY TREAT THEIR WASTEWATER FOR TWO DALLAS AND RICHARDSON, WE DO PARTIAL, UM, TREATMENTS.
AND DURING THAT AUDIT WE HAD 12 AREAS THAT WE WENT THROUGH IN DETAIL AND THERE WERE A TOTAL OF 21 RECOMMENDATIONS.
I DO WANNA THANK CRYSTAL AND JAMES, UH, FOR, UH, IMPLEMENT YOU.
YOU'LL SEE, UM, WHEN SHE'S GOING OVER THIS.
UM, VERY PLEASED WITH THE RESULTS THAT I HAVE GOT TO OBSERVE.
UH, BUT CRYSTAL IS GONNA GO OVER THE DETAILS.
SONYA, GOOD EVENING AUDIT COMMITTEE.
UM, MY NAME IS CRYSTAL OWENS AND I'M ONE OF THE ASSISTANT CITY MANAGERS HERE AT THE CITY OF GARLAND.
AS JET STATED, I AM GOING TO GIVE YOU AN AUDIT FOLLOW UP ON THE MUNICIPAL WASTEWATER TREATMENT AGREEMENTS.
UM, I WAS LOOKING THROUGH MY NOTES, SO I DIDN'T HEAR WHAT J SAID, HONESTLY,
SO ON THE ORIGINAL AUDIT SCOPE, UM, BACK IN APRIL OF LAST YEAR WAS THE AUDIT COMMITTEE MEETING AND THE AUDIT SCOPE
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WAS OCTOBER 22ND THROUGH NOV, I MEAN OCTOBER OF 2022 THROUGH NOVEMBER OF 2024.AS JED DID STATE, THERE WERE 12 OPPORTUNITIES FOR IMPROVEMENT IDENTIFIED.
I'M GONNA GO THROUGH EACH ONE OF THOSE ON AN INDIVIDUAL BASIS AND YOU WILL FIND THAT MOST OF THOSE FINDINGS HAVE BEEN ADDRESSED.
HOWEVER, THERE ARE SOME THAT WILL REQUIRE AGREEMENT, RENEGOTIATION AND OR ORDINANCE AMENDMENTS.
UM, AUDIT FINDING NUMBER ONE WAS RICHARDSON'S DISCHARGE INTO GARLAND'S COLLECTION SYSTEM IS NOT METERED AND IT'S USING A FLOW RATE STUDY.
I MEAN A FLOW RATE FROM A 1995 STUDY.
WE ALSO DID PROFESSIONAL FLOW MONITORING STUDIES, UM, IN 99 AS WELL AS 2009 WITH VERY SIMILAR RESULTS.
AND THOSE WERE THE RESULTS THAT WE WERE USING UP UNTIL WE DID INSTALL METERS IN AUGUST OF 2025 TO MEASURE RICHARDSON'S FLOW AND WE CONSIDER THAT AS COMPLETE.
NUMBER TWO, LATE PAYMENT PENALTIES WERE NOT BEING ASSESSED.
DALLAS AND RICHARDSON CONTRACTS, WHICH ARE UP FOR RENEWAL, UM, IN FALL OF 2027.
UH, THEY DO NOT INCLUDE PROVISIONS FOR LATE PENALTIES.
AND, UH, APPARENTLY THERE WAS SOMETHING IN OUR BILLING SYSTEM THAT HAD A LATE PAYMENT EXEMPTION FOR MUNICIPAL CUSTOMERS AND WE DID DEACTIVATE THAT IN MARCH OF LAST YEAR.
SO WE ALSO CONSIDER THAT COMPLETE AND WE WILL BE, UM, ASSESSING THAT OR ADDRESSING THAT WHEN WE RENEW DALLAS AND RICHARDSON'S, UH, CONTRACTS.
UM, SO THIS ONE IS A LITTLE DIFFERENT.
SURCHARGES ARE NOT BEING ACCESSED FOR EXCESS WASTEWATER STRENGTH.
THE CHALLENGE WITH THIS IS, UM, USING THIS METHODOLOGY IS CONSIDERED SOMEWHAT ARBITRARY AND IT'S ALSO CONSIDERED PUNITIVE.
UM, IT DOES NOT NECESSARILY ALIGNED WITH INDUSTRY STANDARDS, WHICH IS MORE IN LINE WITH, UM, THE ALL IN RATE METHODOLOGY IS THE TYPICAL WAY THAT YOU WOULD FIND THIS DONE IN THE INDUSTRY.
UNFORTUNATELY, OUR AGREEMENTS ARE WRITTEN WITH THE BOD AND TSS SURCHARGE LANGUAGE AND IN ORDER TO CHANGE THAT, IT WILL REQUIRE AGREEMENT TO BE, UH, RENEGOTIATED AND THEN OUR ORDINANCE TO BE AMENDED.
AND YOU'LL ALSO NOTICE AS WHEN, WHILE I'M GOING THROUGH THIS, YOU'LL SEE THE STATUS, UM, WHERE IT DOES REQUIRE SOME ADDITIONAL, UM, I GUESS AGREEMENT CHANGES OR ORDINANCE CHANGES THAT'S IN RED TO DRAW TO DRAW YOUR ATTENTION TO THAT.
NUMBER FOUR, ONE OF SUNNYVALE POINTS OF ENTRY IS NOT SAMPLE FOR WASTEWATER STRENGTH AND THE DALLAS POINT OF ENTRY WAS NOT SAMPLE FOR SEVEN MONTHS.
SO SUNNYVALE'S POINT OF ENTRY IS NOT METERED AND IT DOES NOT HAVE A, A SAMPLING PORT, BUT IT IS, UM, A RES IN A RESIDENTIAL AREA AND THE FLOW IN THAT AREA IS CONSIDERABLY LOW.
DALLAS'S POINT OF ENTRY IS WITHIN THE 6 35 EXPANSION WORK AND ANOTHER MANHOLE WAS IDENTIFIED FOR TEMPORARY SAMPLING IN SEPTEMBER OF LAST YEAR.
UM, WE HAVE CONSIDERED THIS STATUS COMPLETE AS WELL ON THE DALLAS METER CALIBRATION.
GERLAND DOES NOT RECEIVE DALLAS WASTEWATER METER CALIBRATION REPORTS.
SO THE DALLAS POINT OF ENTRY IS ACTUALLY LOCATED WITHIN THE 6 35 CONSTRUCTION AREA.
AND AS A RESULT OF THAT, THE CALIBRATION HAS NOT BEEN ABLE TO BE COMPLETED.
AS OF THIS REPORT, WE STILL DID NOT HAVE A DEFINITIVE DATE FROM DALLAS AS TO WHEN THEY WOULD BE ABLE TO CALIBRATE THIS.
SO WE ARE SAYING THAT IT'S INACCESSIBLE DURING CONSTRUCTION, BUT WE WILL CONTINUE TO FOLLOW UP WITH DALLAS, UM, ONCE IT IS ACCESSIBLE SO THAT WE CAN MAKE CERTAIN THAT WE'RE GETTING THAT INFORMATION.
UM, GETTING THOSE METERS CALIBRATED.
ASAP, ARE WE LOSING MONEY AS A RESULT OF THAT? ARE WE WHAT'S I, I DON'T THINK SO.
THE AMOUNT OF FLOW THAT WE GET FROM DALLAS, I WOULD SAY THAT IT'S MINOR.
IT'S NOT CONSIDERED ONE OF OUR MAJOR CONTRACTS.
UM, ALRIGHT, FUNDING NUMBER SIX.
THE NEW ANNUAL RATES ARE ASSESSED ONE MONTH LATE.
THIS WAS A REALLY EASY FIX FOR US.
SO INDUSTRIAL RATES ARE NOW EFFECTIVE OCTOBER 1ST AND WE CONSIDER THAT COMPLETE AS WELL.
LIABILITY VERBIAGE AND REQUIREMENTS ARE INCONSISTENT ACROSS AGREEMENTS.
IT IS A TRUE STATEMENT, HOWEVER, EACH AGREEMENT DOES DEFINE
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THE ENTITY THAT IS LIABLE FOR DAMAGES.UM, THE CHALLENGE THAT WE HAVE IS THAT THESE AGREEMENTS ARE ASSESSED, I'M SORRY, THESE AGREEMENTS WERE EXECUTED AND THERE IS VARYING LANGUAGE BECAUSE OUR AGREEMENTS ARE NOT CONSISTENT ACROSS, UM, EACH ENTITY.
KEEPING IN MIND THAT SOME OF OUR AGREEMENTS, ESPECIALLY I BELIEVE IT'S DALLAS AS WELL AS SUNNYVALE, THOSE WERE 50 YEAR, 50 YEAR AGREEMENTS, IF I'M NOT MISTAKEN.
UM, THEY WERE EXECUTED BACK IN I BELIEVE 1977.
UM, IF YOU LOOK AT THEM, I THINK THEY WERE WRITTEN ON TYPESET, NOT EVEN A TYPEWRITER
SO THE FACT THAT THE LANGUAGE IS NOT CONSISTENT ACROSS THESE, UM, AGREEMENTS, I WOULD SAY THAT IS TRULY ACCURATE.
BUT THERE IS DEFINITELY LANGUAGE IN EACH ONE OF THE AGREEMENTS THAT ADDRESSES WHO IS WHO'S LIABLE FOR WHAT DAMAGES.
THERE IS NO CONFLICT, THERE IS NO CONFLICT THAT WE CAN FIND.
AUDIT FINDING NUMBER EIGHT, CONSUMPTION CALCULATION METHODOLOGY FOR INOPERABLE METERS IS INCORRECT.
ALTHOUGH WE WERE USING, UM, THE AVERAGE IN, I MEAN WE WERE USING ACTUAL INSTEAD OF AVERAGE.
OUR, OUR AGREEMENT DOES STATE AVERAGE.
SO MOVING FORWARD WE WILL BE CHANGING THE LANGUAGE TO SAY ACTUAL USE OF THE LAST 12 MONTHS AND FUTURE AGREEMENT NEGOTIATION INSTEAD OF AVERAGE.
SO THAT IS GOING TO REQUIRE AN AGREEMENT IN ORDINANCE AMENDMENTS.
HOWEVER, WE ARE HOPEFUL THAT, UM, OUR USERS WILL BE OPEN TO TO THOSE AMENDMENTS CALCULATION METHOD, NOT DOCUMENTED.
AUDIT FINDING NUMBER NINE, UH, CALCULATION METHOD FOR INOPERABLE METER CONSUMPTION IS NOT FULLY DOCUMENTED.
UM, IA WAS ABLE TO, CAL RECAL WAS UNABLE TO RECALCULATE ESTIMATED VOLUME FOR ONE OF ABOUT 20 INOPERABLE METERS.
UH, STAFF HAS BEGAN FULLY DOCUMENTING THE VALUES USED IN ESTIMATED VOLUME CALCULATION.
WE STARTED THAT IN MARCH OF LAST YEAR, AND WE CONSIDER THAT STATUS TO BE COMPLETE AS WELL.
SUNNYVALE POTABLE WATER CONSUMPTION DATA IS NOT VERIFIED GWU NOW GARLAND WATER UTILITIES RECEIVES A SYSTEM GENERATED PDF AS OF FEBRUARY OF LAST YEAR, AND THAT SHOULD SATISFY THAT REQUIREMENT.
AUDIT FINDING NUMBER 11, REPORTING REQUIREMENTS FOR INFILTRATION AND INFLOW ARE NON-EXISTENT IN THE AGREEMENTS.
THERE IS LANGUAGE IN THE AGREEMENTS THAT ADDRESSES INFILTRATION AND INFLOW, BUT IT IS NOT, UM, IT'S, IT'S VERY SUBJECTIVE WHEN IT COMES TO REASONABLENESS AND INDUSTRY STANDARDS.
IT DEPENDS ON WHO YOU'RE SPEAKING TO AND WHO'S MAKING THOSE, UM, WHO'S MAKING THOSE DECISIONS.
SO MOVING FORWARD, WE ARE GOING TO, OR WE'VE ALREADY REACHED OUT TO OUR CONSULTANT ABOUT, UM, PINNING SOME MORE DEFINITIVE LANGUAGE IN OUR CONTRACTS THAT WILL ALLOW US TO BE ABLE TO ASSESS, UM, ADDITIONAL FEES OR, OR TO BE ABLE TO ADDRESS THE I AND I AND PEAK FLOWS WITHIN THE, THE MONTHLY REPORTS.
RELA RE RELATIVE TO INFILTRATION AND INFLOW.
AND UNFORTUNATELY THAT TOO IS GOING TO REQUIRE AGREEMENT AND ORDINANCE AMENDMENTS, SIMILAR TO I AND I, UM, INDU AUDIT FINDING NUMBER 12, INDUSTRIAL PRETREATMENT PROGRAM LACK FORMALITY AND DOCUMENTATION AND IT'S OVERSIGHT OF MUNICIPAL CUSTOMERS.
ONCE AGAIN, WE, UM, WE GIVE THEM BEST PRACTICES, BUT WE DO NOT HAVE THE ABILITY TO GO INTO THEIR CITIES, INTO OUR CUSTOMER CITIES AND TEST THEIR WASTE.
UM, WE GIVE THEM THE BEST PRACTICES, WE GIVE THEM THE, THE STANDARDS THAT WE WOULD LIKE TO SEE, BUT WE DO NOT HAVE ENFORCEMENT ABILITIES WITHIN THEIR CITY.
SO WE ARE LOOKING AT MORE FORMAL REQUIREMENTS, UM, IN FUTURE AGREEMENT NEGOTIATIONS.
ONCE AGAIN, THAT'S GONNA REQUIRE AGREEMENT AND ORDINANCE AMENDMENTS AND THEN OUR ONGOING ACTIVITIES.
THE UTILITY CONSULTANT, AS I STATED TO CODIFY SOME OF THE ISSUES THAT HAVE BEEN BROUGHT FORWARD AND SOME OF THE SOLUTIONS THAT WE ARE LOOKING AT FOR INI AS WELL AS INDUSTRIAL PRETREATMENT
[01:00:01]
REQUIREMENTS, WE ARE WORKING TOWARDS AGREEMENT NEGOTIATIONS WITH DALLAS AND RICHARDSON'S, UH, AGREEMENTS, WHICH EXPIRE IN THE FALL OF NEXT YEAR.AND THEN
SSI WAS EXECUTED IN 2020 AS A 20 YEAR AGREEMENT.
SUNNYVALE 2017, A 20 YEAR AGREEMENT, AND THE MUDS WERE EXECUTED IN 2021.
THAT'S A 20 YEAR AGREEMENT WITH UNLIMITED 10 YEAR, UM, EXTENSIONS.
AND WITH THAT, I'LL TAKE ANY QUESTIONS COMMITTEE.
I'LL GO AHEAD AND ASK A COUPLE AND, AND COME BACK TO YOU IF YOU LIKE.
UH, I HEAR YOU CONTINUALLY SAYING, UH, THAT'S GONNA REQUIRE AN ORDINANCE AMENDMENT AGREEMENT AND IT'S SOUNDING LIKE THAT'S SOMETHING THAT YOU NEED TO BE WORKING WITH OR WE NEED TO BE WORKING WITH, WITH OUR LEGAL DEPARTMENT OR SOMETHING THAT WE AS A COUNCIL NEED TO BE WORKING THROUGH.
BECAUSE IT SOUNDS LIKE, UH, THAT KIND OF GIVE, GIVING YOU, UH, A PAUSE.
GIVE ME A, TELL ME MORE ABOUT WHAT NEEDS TO TAKE PLACE TODAY.
SO WE HAVE A CONSULTANT THAT WE HAVE, UM, ON BOARD ALREADY, AND THEY ARE PROVIDING US WITH SOME LANGUAGE THAT WE SHOULD CONSIDER ONCE WE RECEIVE THAT LANGUAGE.
AND WE SHOULD BE RECEIVING THAT IN THE NEXT COUPLE OF MONTHS.
UM, WE WILL BE WORKING WITH THE LEGAL DEPARTMENT TO MAKE CERTAIN THAT WE ARE IN COMPLIANT AND RELATIVE, WE ARE ALREADY WORKING THROUGH THOSE.
BUT THAT'S PART OF YOUR ACTION PLAN? THAT IS CORRECT.
AND ON THE, ON THE AGREEMENT MODIFICATIONS.
I MEAN, WE CAN'T MAKE OTHER PARTIES CHANGE THEIR AGREEMENTS TO BEHAVE BETTER.
AND SO THAT'LL HAVE TO COME WHEN WE RENEW THESE CONTRACTS.
ULTIMATELY, I GUESS THERE COULD COME A TIME WHEN THEY NEED SOMETHING FROM US OR THEY WANT SOME MODIFICATION AND WE CAN NEGOTIATE IN THE THINGS THAT WE'VE ASKED FOR.
BUT IF WE GO BACK TO THEM AND SAY, HEY, WE WANT YOU TO MAKE CHANGES TO THE CONTRACT, I KNOW WHAT I DO WHEN PEOPLE ASK ME THAT, I SAY AND WELL, WHAT ARE YOU GOING TO DO FOR ME? MM-HMM
AND SO, SO CERTAINLY IF WE HAVE THE OPPORTUNITY BECAUSE OF ONGOING CONVERSATIONS IS SOMETHING ONE OF OUR CUSTOMERS US TO DO, WE WOULD LOOK FOR AN OPPORTUNITY TO MAKE THOSE AMENDMENTS.
BUT THE, THE ORDINANCE CHANGES WE CAN MAKE.
THE AMENDMENT CHANGES ARE GONNA HAVE TO WAIT TILL THOSE CONTRACTS GET RENEGOTIATED AT SOME POINT IN THE FUTURE.
MIKE, AS PART OF THE SCOPE FOR CONSULTANT, WE ARE LOOKING, CONSIDER CARROTS TO GET THEM BACK TO, AND I THINK UNDERSTANDING A LITTLE BIT MORE AS IT RELATES TO WATER AND THE PRECIOUSNESS AND COMMODITY THAT WE HAVE, I THINK THAT WHAT I'M LOOKING AT CONSTANTLY IS, IS IT COSTING US MONEY? ARE WE LOSING MONEY AS A RESULT OF SOME OF THE THINGS THAT WE'RE SEEING HERE? ESPECIALLY LIKE THE VALVES, FOR EXAMPLE, IN OPERATIVES.
SO WE ARE NOT ABLE TO MEASURE WHAT'S GOING THROUGH AND SO ON AND SO FORTH.
ARE WE LOSING MONEY AS A RESULT OF IT? SORRY, ON THE CHAIRMAN, IF I MAY ADD, AND, AND I BELIEVE, I MEAN, MANAGEMENT DID A GREAT JOB IN INSTALLING THE METERS, THE METERS FOR, FOR RICHARDSON.
THE ONE WITH THE 6 35, THE CONSTRUCTION IS ONGOING, SO THEY'RE HAVING HARD TIME ACCESSING THE METER TO CALIBRATE.
THEY'RE CONSTANTLY REACHING OUT TO THEM BY WHEN CAN THEY DO THE CALIBRATION? SO OVERALL, THEY ADDRESSED I BELIEVE THE MAJOR PIECES, UH, FROM FINANCIAL PERSPECTIVE AND THE FACT THAT THE CONSULTANT IS WORKING, WORKING THROUGH LANGUAGE, THE LANGUAGE AS WELL AS, UM, YOU KNOW, THAT BOD AND TSS, WHAT'S THE INDUSTRY BEST PRACTICE IN PROVIDING THAT? I THINK THAT WILL PUT SOME MITIGATIVE CONTROLS.
COMMITTEE, UM, UM, ONE OF THE QUESTIONS I HAVE IS SINCE WE HAVE A METER FOR RICHARDSON NOW, UM, ARE YOU SURPRISED BY THE, UH, BY WHAT YOU'RE SEEING DATA? OKAY.
BUT IT'LL BE, UH, HELPFUL FOR A NEGOTIATION, I'M SURE SINCE THEIR CONTRACT IS UP NEXT YEAR, CORRECT? WELL, THEY'RE, THEY'RE, NO.
LESS I AND I, I GUESS, AND, UH, REASON BEHIND AND WE PUT IN ACTUAL VERSUS THE STUDY THAT WE WERE USING THE
[01:05:01]
NUMBERS DID, DOESN'T MEAN WE CAN'T RAISE OUR FEES.IF WE HAVE A, YOU KNOW, WE, IF WE HEAR ABOUT FOREVER CHEMICALS AND THINGS LIKE THAT, AND THAT'S SOMETHING THAT AFFECTS WASTEWATER, UM, WILL OUR CONTRACTS BE ABLE TO REFLECT IF, IF THERE ARE UNEXPECTED, UH, REQUIREMENTS BY, UH, OTHER LEGISLATIVE BODIES, UH, EVEN THOUGH YOU MAY HAVE A CONTRACT THAT'S ONLY THREE YEARS INTO EFFECT, DO WE HAVE THE ABILITY TO BE ABLE TO CHARGE MORE BECAUSE WE HAVE TO SPEND MORE MONEY? SO BECAUSE WE ADMINISTER OUR CON, WE ARE ABLE TO MOVE THOSE OUT IN THE FUND, THAT MANDATE THAT WE ARE CONSTANTLY MONITORING, YOU KNOW, WHAT IS ON THE HORIZON RELATIVE TO THE WATER AND WASTEWATER INTO RIGHT.
YES, WE DO HAVE THE ABILITY TO RECOUP.
I JUST APPRECIATE ALL OF THE WORK THAT YOU'VE DONE TO ADDRESS THE ISSUES THAT WERE FOUND IN THE ORIGINAL AUDIT, AND I'M GLAD THAT YOU'RE STEERING THAT SHIP AND, AND MAKING IT RIGHT.
I'D LIKE TO MEET WITH YOU'VE BEEN VERY BUSY.
ALRIGHT, J, BACK TO YOU, CHAIRMAN.
THE NEXT ITEM IS WHY ARE EMS CONTROL SUBSTANCE AUDIT FOLLOW UP? UM, CHIEF LEE IS GONNA PROVIDE THIS REPORT, UH, THIS AUDIT.
WE PUBLISHED IT BACK, UM, LESS THAN A YEAR AGO, SEPTEMBER 30TH, 2025.
UM, MAINLY WE WERE LOOKING AT THE INTERNAL CONTROLS AS IT RELATES TO CONTROL SUBSTANCES AND SIX AREAS OF IMPROVEMENTS WERE IDENTIFIED.
A TOTAL OF 22 RECOMMENDATIONS.
I BELIEVE YOU WILL ALSO BE PLEASED, UH, WITH THE RESULTS, UH, THEN HOW CHIEF LEE HAVE, UM, TOOK IT TO THE NEXT LEVEL.
OBVIOUSLY THERE ARE SOME AREAS THAT HE'S STILL WORKING ON, UM, BECAUSE OF RESOURCE LIMITATIONS AND SOME, UH, REQUIREMENTS FROM DEA AND STUFF LIKE THAT.
SO I'M GONNA TURN THIS OVER TO CHIEF LEE TO PROVIDE YOU WITH THE UPDATE.
JI CERTAINLY HOPE THEY'RE PLEASED.
IF NOT, WE'LL TRY TO PLEASE 'EM SOME OTHER WAY.
AGAIN, UM,
UH, YOU MAY RECALL THE LAST TIME THAT I SAT HERE, MY HAT WAS IN MY HAND, PRETTY MUCH THE ENTIRETY OF THE PRESENTATION.
UM, WE, WE JUMPED OUT THERE AND GOT OFF TO A GOOD START.
THE VERY FIRST THING WE WANTED TO DO WAS LOOK AT THE GROUPS THAT HAD ACCESS TO THE, THE NOX VAULTS THAT ARE IN THE AMBULANCES.
UM, THE SOFTWARE THAT DRIVES THOSE DEVICES, FOR LACK OF A BETTER TERM, I'M GONNA CALL IT PRIMITIVE.
UH, WE'RE STILL DECIPHERING IT, BUT WE KNOW WE HAVE NONE, WHICH MEANS THEY CAN'T ACCESS THE VAULTS, BUT THEY CAN ACCESS THE KEY SECURE SYSTEM.
SO THAT'S THE TWO GROUPS THAT WE HAVE ACCESSING THE VAULTS.
UM, WE DID GET ALL OF THE NON-RESPONDING PERSONNEL OFF OF THE PARAMEDICS LIST SO THEY CAN NO LONGER ACCESS THOSE VAULTS.
THERE'S ONGOING CONVERSATIONS ABOUT BATTALION CHIEFS, STATION OFFICERS, WHETHER THEY SHOULD HAVE ACCESS TO THOSE VAULTS.
WE HAVE DETERMINED THAT ON THOSE CRITICAL SCENES WHERE EVERYBODY'S IN THE BACK OF THE AMBULANCE AND SOMEBODY SAYS, HEY, I NEED A CONTROLLED SUBSTANCE, THAT IF THE PERSON CLOSEST TO THE SAFE DOES NOT HAVE A PEN TO OPEN, SAID SAFE.
SOMEBODY'S FIXING TO GIVE THEM THEIR PEN TO GET THAT SAFE OPEN.
SO ANYBODY THAT'S A RESPONDER, ANYBODY THAT IS A PARAMEDIC RESPONDER WILL STILL HAVE ACCESS TO IT, WHICH LED US TO THE NEXT LEVEL.
THE RECRUITS THAT HAVE JUST COME OUT TO THE FIELD, THEIR EMTS ARE NOT PARAMEDICS YET.
WE LOOKED AT THAT AND SAID, SAME SCENARIO, THAT RECRUIT IS NOW GONNA HAVE SOME PARAMEDICS PIN NUMBER IF WE DON'T GO AHEAD AND GIVE THEM THEIR OWN.
SO, UM, PEN ACCESS NON-RESPONDERS HAVE BEEN REMOVED, SO WE CAN, WE CAN CLEAR THAT ONE, GET SOMETHING TO GET ON THE CORRECT SLIDE THERE.
WE, WE CURRENTLY HAVE A FOUR DIGIT PEN LENGTH AND IT CAN GO AS MUCH AS EIGHT.
WE FINALLY GOT AHOLD OF THE VENDOR, TALKED TO WHO WE THINK IS THE RIGHT PERSON TO SAY, HEY, WHAT IS THE RECOMMENDED PEN LENGTH? AND THEY SAID, BETWEEN FOUR AND EIGHT
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VERY, VERY HELPFUL TO US ON THAT.UM, NOW THE DISCUSSION IS IF WE USE SIX, IT'LL BE A DATE OF BIRTH.
IF WE USE SEVEN, IT'LL BE A PHONE NUMBER.
IF IT'S EIGHT, IT'LL BE ONE PLUS THE PHONE NUMBER.
AND IF WE STICK WITH FOUR, WE'RE PROBABLY STILL GONNA HAVE A DUPLICATE OR TWO OUT THERE.
SO WE'RE STILL LOOKING FOR A SETTLED IN NUMBER ON THAT.
WE'RE PROBABLY GOING TO GO WITH A FIVE DIGIT SYSTEM.
THE NEXT COMPLICATION THERE IS WHEN DO WE RESET THE ENTIRETY OF THE SYSTEM? BECAUSE SOMEBODY IN THE FIELD NOW DOESN'T HAVE ACCESS TO THE SAFE WITHOUT FIXING THEIR, THEIR PIN NUMBER TO THE SYSTEM.
SO WE'RE GONNA HAVE TO COORDINATE THAT, BUY SHIFTS, GET EVERYBODY RESET, GET EVERYBODY NEW PIN NUMBERS, HOPE THAT THEY DON'T RIDE IT ON THE SAFE SOMEWHERE AND, UH, MOVE FORWARD FROM THERE.
UM, THE AUDIT REVEALED SOMETHING THAT JUST BLEW MY MIND ON THE NUMBER OF PEOPLE THAT COULD ACCESS THE EMS SUPPLY ROOM AND THE WAREHOUSE AND THE SPORTS SERVICES AREA OF THE FIRE ADMINISTRATION BUILDING.
UH, SINCE THAT TIME, WE PRETTY MUCH KILLED EVERYBODY'S ACCESS, INCLUDING MOST OF OUR DEPARTMENTS.
POLICE DEPARTMENT STILL HAS FULL AND COMPLETE ACCESS TO THE ENTIRETY OF OUR BUILDING THAT WILL NOT CHANGE OUR MEMBERS TO THE NARCOTICS ROOM.
IF YOU DON'T HAVE BUSINESS IN THAT ROOM, YOU CANNOT OPEN THAT DOOR BY YOURSELF.
YOU WILL HAVE TO BE ESCORTED IN CLEANING.
WE'RE LOOKING TO COMMUNICATE WITH THEM THAT THEY'RE GONNA HAVE TO BE ESCORTED IN AND OUT OF THERE AS WELL, SO THAT WE'LL OPEN THE DOOR FOR 'EM.
THEY WON'T HAVE ACCESS TO THAT ROOM.
THERE ARE CAMERAS ON THAT SAFE, UH, BUT I THINK IT'S BETTER TO REDUCE THE NUMBER OF PEOPLE THAT CAN GET IN AND OUT OF IT.
UM, PULLING NUMBERS OUT OF THE AIR, AGAIN, IT WAS 500 AND SOMETHING PEOPLE HAD ACCESS TO THE WAREHOUSE AND LIKE 70 OF THEM WERE FIREFIGHTERS.
SO THAT, THAT REALLY CONCERNED ME A LOT.
THE CAMERA ACCESS, UM, MS. HARRIS AND FACILITIES IS, UH, WORKING WITH CHIEF LITTLE ON WHO CAN DO PAN TILT AND ZOOM ON THE CAMERAS AS WELL AS WHO CAN SAVE, UH, AND BOOKMARK THE CAMERA SYSTEM AND WHO CAN MORE IMPORTANTLY DELETE ANY RECORDINGS THAT THE CAMERAS HAVE MADE.
UH, WE'LL HAVE THAT COMPLETED HOPEFULLY THIS MONTH.
UH, ONBOARDING AND OFFBOARDING CHECKLIST.
CASEY ANGLIN IS NOW HANDLING ALL OF OUR ONBOARDING OFFBOARDING THE, UH, TEST, THE RETURN TEST FOR INTERNAL AUDIT.
WE'RE NOT READY FOR YOU TO COME OUT.
UH, WE'RE STILL WAITING ON THE PIN CONFIGURATIONS AND THE OUTTA SERVICE RULEMAKING.
WE'VE BEEN POLLING A LOT OF OUR PARAMEDICS, UH, WHAT THEIR UNDERSTANDING TO DO IS IN AN OUTTA SERVICE EVENT, AND NEARLY UNIVERSALLY IT IS LEAVE THE DOOR OPEN.
SO WE WANNA MAKE SURE THAT WE CODIFY THAT.
UM, AND THEN AUTOMATION OF ACTIVITY REPORTS.
THIS WAS CONCERNING THE KNOX FAULTS, AGAIN, PRIMITIVE IS THE WORD THAT I USE AND WE'RE NOT REAL SURE THAT IT'S CAPABLE OF AN AUTOMATIC REPORT WILL CONTINUE.
WORKING WITH THE VENDOR MAP, EXISTING DATA FLOW, WE WERE GETTING ALL OF THIS LAID OUT.
AND IN MARCH, THE DEA REL, WE, UH, RELEASED THE PROTECTING PATIENT ACCESS TO EMERGENCY MEDICATIONS ACT.
THIS ACT WAS WRITTEN IN THE EARLY 19 HUNDREDS, I BELIEVE.
UH, BUT THEY FINALLY, THEY, THEY LEFT EMS OUT ALL ALONG AND, AND WE FOUND THAT IN THE AUDIT, THERE'S NO SPECIFIC RULES FOR EMS AGENCIES AND NOR CONTROLLED SUBSTANCES.
UH, THE RULES ARE DESIGNED FOR A PHARMACY, A PHYSICIAN'S OFFICE, A HOSPITAL, THOSE SORTS OF SCENARIOS, NOT FOR AN AMBULANCE RUNNING AROUND TOWN WITH CONTROLLED SUBSTANCES IN IT.
UH, THEY RELEASED THEM IN MARCH.
THEY, UH, DID THE LAST UPDATE IN MAY WHERE THEY HAD TO GO BACK AND MAKE A BUNCH OF REVISIONS TO IT.
SO ALL OF THAT TO SAY, WE NOW HAVE A BLUEPRINT OF HOW TO MAP OUR INFORMATION MOVING FORWARD ON HOW TO, UM, INVENTORY AND CONTROL OUR, OUR NARCOTICS AND OTHER CONTROLLED SUBSTANCES.
UH, ONE OF THE THINGS POINTED OUT WAS INTEGRATION OPTIONS.
IMAGETREND WILL NOT INTEGRATE WITH OPERATIVE IQ.
UH, THAT'S BEEN A CHALLENGE FOR US.
UH, SO ONE OF OUR EMS ONE OFFICERS WROTE AN APP AND USING AI, UH, HE THROWS THE OP IQ DATA IN IT EVERY EVENING, THROWS THE EMS REPORTS IN IT OVER THE PREVIOUS 24 HOURS AND SAYS, COMPARE IT.
AND WE HAVE FOUND WHERE PARAMEDICS ARE NOT DOCUMENTED IN ONE SIDE OR THE OTHER, IT'S ALREADY WORKING, JUST LIKE IT WAS PROBABLY DESIGNED TO DO AS MUCH SUGAR IN, AS IT BRINGS ME TO ADMIT, AI DOES WORK IN SOME CIRCUMSTANCES, SIR, IT DOES WORK.
UM, WE DID LAUNCH OPERATIVE IQS FOR THE TRACKING OF OUR NARCOTICS SINCE WE DID NOT HAVE AN INTEGRATION PLAN
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OR, OR THE ABILITY FOR IMAGETREND TO TRACK THEM.UM, THE FIREWORKS IN-HOUSE SOFTWARE WAS MOVED OVER TO MS. OFFICE 365, UH, WHILE WE WERE LOOKING AT NEW RECORDS MANAGEMENT SYSTEM POSSIBILITIES DOWN THE ROAD.
UM, THE FIREWORKS SYSTEM, WHEN WE DID THE AUDIT, UH, THERE WAS 2000, 6,000, SOMETHING LIKE THAT, OPPORTUNITIES TO PULL DATA OF PEOPLE, UH, CHECKING THEIR AMBULANCES AND THEIR CONTROLLED SUBSTANCES EACH AND EVERY MORNING OF THAT.
THEY ONLY FOUND ABOUT 200 CASES THAT THEY COULD PULL OUT THAT WE ACTUALLY DID THAT.
THE PRACTICE IS TO DOCUMENT THAT.
WE WENT BACK TO RECREATE THE, THE INFORMATION PULLING OUT A FIREWORK SYSTEM AND WE COULD PULL THEM.
SO SOMEWHERE THE SYSTEM OPERATORS, SOMEBODY MESSED SOMETHING UP IN THERE, BUT IT'S ALL MUTE NOW BECAUSE WE KILLED FIREWORKS.
WE'VE PUT EVERYTHING INTO MS 365 UNTIL WE CAN GET A NEW RMS SYSTEM THAT TRACKS IT BETTER.
UM, OPERATIVE IQ SYSTEM, UH, DOES A REPORT DAILY AND TELLS US WHERE THERE'S, UH, ANYTHING THAT NEEDS TO BE RECONCILED, A SAFE THAT DIDN'T GET CHECKED OR ANYTHING ELSE.
AND WE'VE GOT VISIBILITY ON THAT AND THE GUYS ARE CHECKING IT ON A ROUTINE BASIS.
POLICIES AND DEVELOPMENT, AGAIN, UH, WITH THE P-P-A-E-M-A REVIEW AND UNDERSTANDING OPERATIVE IQ, I SAID IT IS DOING DAILY REPORTS, SHOWS DEFICIENCIES, RECONCILIATION REPORTS WITH RE AND, UH, FOUND OUT, UH, LAST WEEK THAT OP IQ CAN DO ANALYSIS REPORTS TO FOR POTENTIAL RED FLAGS.
SO IF WE HAVE A MEDIC THAT DRAWS UP, UM, 200 MICROGRAMS OF FENTANYL TO GIVE TO A PATIENT FOR WHATEVER REASON, THE MEDICATION IS NEVER ADMINISTERED, WHICH IS NOT AN UNCOMMON OCCURRENCE, PATIENTS WILL REFUSE IT.
AFTER YOU'VE DRAWN IT, YOU ARRIVED AT THE HOSPITAL FASTER THAN YOU THOUGHT YOU WOULD, THOSE EVENTS OCCUR.
BUT IF WE HAVE A CERTAIN MEDIC THAT IS DOING THAT MORE OFTEN THAN ANYBODY ELSE, IT, THE SYSTEM WILL FLAG IT.
SO WE'RE, WE NEED ABOUT SIX MONTHS WORTH OF DATA INITIALLY.
SO WE HAVE A GOOD DATA SET AND THEN WE'RE GONNA START DOING THAT REPORT PROBABLY EVERY MONTH.
UH, WE WILL RUN THE OP IQ RISK ANALYSIS, UH, SOFTWARE TO, TO GIVE US SOME CLUES WHERE WE MIGHT NEED TO BE WATCHING CLOSER.
THE DEA 2 22 REVERSE DISTRIBUTOR FORM WAS COMPLETED ALONG THE MEDICATION DESTRUCTION FOR THE OUTSTANDING VIALS THAT WERE IN STOCK.
UM, OUR, OUR SUPPLY FOLKS FELT LIKE WITH THE NATIONAL BACK ORDERS THAT OCCUR ON SO MANY MEDICATIONS, THEY WERE, UM, I WON'T SAY HOARDING, BUT THEY WERE STOCKPILING EXPIRED MEDS, WHICH IT'S NOT UNCOMMON FOR THE DEA AND THE MEDICAL DIRECTORS TO SAY, YOU CAN USE THE EXPIRED MEDS IF THEY'RE WITHIN TWO YEARS.
WITH THE NEW OP IQ SYSTEM, WE CAN PREDICT, BETTER PREDICT OUR USAGES ON ALL MEDICATIONS, NOT JUST THE CONTROLLED SUBSTANCES, AND MAINTAIN A SIX MONTH SUPPLY, UH, WHICH MOST OF THE BACK ORDERS CLEAR, UH, WELL AHEAD OF SIX MONTHS.
SO WE GOT RID OF THOSE, UH, DID DO A SPOT CHECK, UH, I THINK IT WAS LAST MONTH.
I WENT DOWN THERE AND ASKED THEM TO OPEN THE SAFE AND SHOWED ME THEY'RE EXPIRED NARCOTICS.
THEY OPENED IT UP AND THERE WERE A HANDFUL OF, UH, CONTROLLED SUBSTANCES IN THERE THAT WERE EXPIRED.
HE SAID, WELL, WE'RE THINKING MAYBE QUARTERLY OR TWICE A YEAR OR EVERY YEAR, WE'LL JUST GET 'EM OUTTA HERE.
AND I SAID, NO, WHEN, WHEN WE PULL A BATCH, GET 'EM GONE.
THE NEW RULES FROM DEA DO REFER IT AS CRADLE TO GRAVE.
UH, AN OPERATIVE IQ IS TOTALLY COMPLIANT WITH THOSE NEW REGULATIONS.
FROM THE MOMENT WE RECEIVE A MEDICATION, ACTUALLY FROM THE MOMENT WE ORDER THE MEDICATION, RECEIVE THE MEDICATION, DISTRIBUTE TO AN AMBULANCE, ADMINISTER A PATIENT, DROP IT AND BREAK IT, RETURN IT EXPIRED, RETURN IT TO A, A REVERSE DISTRIBUTOR, UH, WE CAN SEE WHERE THAT, THAT NARCOTIC IS AT ALL TIMES.
AND THAT WAS THE D A'S BIGGEST FEAR WAS THEY'D COME INTO AN AGENCY LIKE GARLAND, TEXAS AND, AND SAY, SHOW US VIAL NUMBER X.
AND WE WOULD HAVE TO CALL ALL THE AMBULANCES.
AND LOOK, WE KNEW HOW MANY VIALS WE HAVE, BUT WE COULD NOT TELL YOU WHERE THAT VIAL IS.
WE CAN NOW DO THAT DEFINITIVELY THROUGH THE OP IQ SYSTEM.
SO IT'S, IT'S, IT'S A GREAT ENHANCEMENT.
[01:20:01]
THEY FINALLY GOT THE RULES OUT.I'M GLAD WE GOT SOFTWARE TO WORK WITH WASTAGE WHENEVER WE HAD THAT 200 MICS THAT WE'VE PULLED UP AND NEED TO GET RID OF IT.
NOW, WE LOOKED AT THE, UM, MATERIALS THAT MAKE IT INERT.
SO IT'S, IT'S NOT DONE USED TO ANIMALS OR HUMANS OR THE ENVIRONMENT.
UH, THEY'RE KIND OF COST PROHIBITIVE.
IT'S ABOUT $5 FOR A SMALL DOSE EVERY TIME YOU DO IT.
UM, DOWN THE DRAIN IS UNACCEPTABLE.
OUR SYSTEM, UM, COFFEE GROUNDS AND KITTY LITTER IS ANOTHER MEANS THAT THEY SAY IS GREAT, BUT I REALLY CAN'T SEE US CARRYING COFFEE GROUNDS AND KITTY LITTER ON THE AMBULANCE TO GET RID OF NARCOTICS.
UM, I DID CONFIRM WITH THE LANDFILL THAT THE FEAR USED TO BE THAT IT WOULD LEACH INTO THE WATER TABLES, RIGHT? THAT THE LANDFILLS JUST SAT THERE AND SEEP BILL, IT REACHES WATER AND THEN DISTRIBUTES.
HE SAID, THAT'S, THAT'S OLD, OLD, OLD LANDFILLS, NEW LANDFILLS.
HE SAID, PLEASE DON'T PUT A BUNCH OF LIQUIDS IN YOUR TRASH CAN, UH, BECAUSE YOU'RE PROBABLY NOT CONTROLLED THEN, BUT IF YOU GOT A BUNCH OF PAPER GOODS IN THE TRASH AND YOU SQUIRT IT IN YOUR TRASH, IT'S COMING TO US AND WE'RE GONNA LOCK IT UP.
BUT IT'S GONNA BE THERE FOREVER AND A DAY.
SO, UH, CURRENTLY WE'RE STILL USING THE, UM, NEEDLE DISPOSAL BOXES, UH, AND PLACING IT IN THERE, UH, AND OR SQUIRTING IN THE TRASH CAN AT THE HOSPITAL, UH, GETTING RID OF 'EM THAT WAY.
SO, UM, WE'LL STILL LOOK FOR OTHER OPPORTUNITIES THERE.
UH, BUT RIGHT NOW, THE, THE LANDFILL SEEMS TO BE ONE OF THE BEST PLACES TO PUT THIS STUFF.
EXISTING DIRECTIVES AND SOPS ARE BEING REWRITTEN AND MODIFIED TO INCLUDE THE NEW POLICIES FROM DEA, UH, CRADLE TO GRAVE.
RISK ADDRESSED EARLIER ARE BEING COMPILED IN A CONTROLLED SUBSTANCES DIRECTORY.
THIS WAS BASICALLY A MASTER LOG FROM REGISTERING AN ASSISTANT CHIEF TO OR ORDER THROUGH THE CONTROLLED SUBSTANCE ORDERING SYSTEM, UH, WHICH IS AN ELECTRONIC TRACKABLE, UH, SYSTEM ALL THE WAY THROUGH SENDING THE TWO 20 TWOS FOR REVERSE DISTRIBUTORS, UH, AND GETTING THE CONFIRMATION THAT THEY RECEIVED IT.
TICKETS BACK FROM THEM AS WELL WILL ALL BE PLACED INTO THAT BOOK.
BUT WITH THE NEW RULES, WE'RE TRYING TO GET EVERYTHING IN LINE AND, AND THEN ASSEMBLE SOME BOOKS.
SEGREGATION OF DUTIES WE TALKED ABOUT.
NON-RESPONDER PERSONNEL HAVE BEEN REMOVED.
ACCESS REPORTS ARE AVAILABLE THROUGH ONE OF OUR NON-SWORN STAFF MEMBERS.
SO ASHLEY, WHO IS OUR IT PERSON, ONE OF OUR IT PERSONS, UH, CAN, CAN ACCESS AND RUN REPORTS FOR US.
SHE HAS NO ACCESS TO ANY OTHER PARTS OF THE KNOX FAULT SYSTEM AND NO ACCESS TO THE SYSTEM.
UH, WHEN A VIAL BECOMES DAMAGED, LOST, OR WASTED, UH, THE OP IQ SYSTEM, THEY ACTUALLY HAVE A BARCODE ON EVERY BOTTLE OR EVERY VIAL.
IF THEY BREAK ONE, THEY TAKE THAT TAG, THEY SCAN IT AND CREATE AN INSTANT REPORT.
AND THAT INCIDENT REPORT IMMEDIATELY EMAILS, UH, THE, THE GUY THAT'S OVER OUR SUPPLIES AND THE ALL OF THE EMS ONE OFFICERS.
AND WHAT THEY DO AT THAT POINT IS THEY GO INTO THE SYSTEM, MOVE THAT PARTICULAR BROKEN VIAL OR THAT TAG TO A VIRTUAL SAFE SO IT IS PLACED INTO THAT VIRTUAL SAFE.
NOW THEY CAN DO THEIR AUDITS ON THEIR, THEIR SAFE AND, AND BE COMPLIANT WITH THEIR SAFE AUDITS.
UH, WHENEVER RICHARD DUGGAR IS OUR SUPPLY GUY, WHEN HE COMES BACK INTO THE OFFICE, HE CAN TAKE IT OUTTA THE VIRTUAL SAFE AND TAKE THEIR INSTANT REPORT THAT THEY HAD TO FILL OUT.
WHAT HAPPENED TO IT? HOW DID IT GET BROKEN? HOW DID IT GET LOST? HOW DID IT GET DAMAGED? UH, AND, AND PUT ALL OF THAT INTO THE SYSTEM.
AND THEN JUST NOW TRACKED AGAIN, CRADLE TO GRAVE, THAT BECOMES ITS NEW GRAVE.
WE WERE RECOMMENDED TO SEEK, UH, INFORMATION FROM CY-FAIR AND RICHARDSON.
THE LABELS ARE PRINTED AND ATTACHED WITH A LOOP ON THE LABEL ITSELF TO THE TOP OF EACH VIAL.
UH, OP IQ IS THE VENDOR THAT WE CHOSE.
FIREWORKS HAVE BEEN SHUT DOWN, AND, UH, SO FAR WE'RE VERY IMPRESSED WITH THE CAPABILITIES OF OPERATIVE IQ.
SO MILESTONE STATUSES, UH, ACCESS ADJUSTMENTS WILL CONTINUE TO BE ONGOING PROCESS ESTABLISHED
[01:25:01]
RECONCILING DATA BETWEENCOMPLETE EXPIRED MEDICATIONS DESTROYED WITH ANOTHER DESTRUCTION AND PROCESS COMPLETE.
UH, CRITICAL ROLES OR SEGREGATED COMPLETE VIALS ARE ELECTRONICALLY LABELED.
COMPLETE PROGRAM MANUAL DEVELOPMENT IS IN THE EARLY STAGES AS WE FINISH READING THE FEDERAL REGISTER FOR, UH, DEA COMPLIANCE.
AND WITH THAT, I'LL BE HAPPY TO TAKE QUESTIONS.
YOU HEARD THE FAR EMS CONTROL SUBSTANCE WORK AUDIT QUESTIONS.
THAT'S A VERY EXHAUSTIVE, UH, LIST OF THINGS YOU HAD THERE, CHIEF.
IT WAS A LONG LIST OF STUFF TO DO, SIR.
ONE THAT I WASN'T HAPPY ABOUT.
SO THANK YOU TO AUDIT AS WELL FOR HELPING US SHORE UP THAT WE, WE HAVE HAD A DIVERSION IN OUR PAST.
AND, UH, WHEN YOU WORK WITH PEOPLE THAT GO INTO PEOPLE'S HOMES, WHETHER IT'S A $20,000 TRAILER OR A $15 MILLION HOME, AND THEY MEET YOU AT THE STREET AND GIVE YOU FULL ACCESS TO EVERYTHING IN THEIR HOME, AND I BELIEVE IN THESE PEOPLE AND KNOW THAT THOSE PEOPLE'S TREASURES ARE SAFE 100% TO HAVE THAT PERSON TAKING OUR CONTROLLED SUBSTANCES FROM US, PLACING THEIR FELLOW FIREFIGHTERS EMPLOYMENT AT RISK.
BECAUSE WHOEVER COMES UP SHORT THAT DAY IS THE ONE LIABLE IF THEY DIDN'T REPORT A SHORTAGE.
AND SO, UH, IT HIT US REALLY HARD AND, UH, I THINK IT'S A GOOD IDEA FOR US.
THAT'LL BE ABOUT THREE YEARS LEFT.
I THINK WE SHOULD DO THESE AUDITS EVERY THREE AND A HALF YEARS.
J SO
UM, IN ALL SINCERITY THOUGH, THE, THE CONTROLLED SUBSTANCES IS A VERY SCARY PLACE FOR US TO OPERATE IN.
IT'S, IT'S CRITICAL TO THE PATIENTS THAT WE SERVE AND THE COMMUNITY.
UM, BUT IN THE OPERATIONS ARENA, WE WANT EVERY SAFEGUARD WE CAN TO PROTECT OUR PEOPLE IN CASE ONE OF US GOES ROGUE.
UM, I WAS WONDERING IN THE DRUG DISPOSAL, IS THERE ANY WAY THAT PD CAN ASSIST WITH THAT SINCE THEY ALSO DO THE SAME THING WITH CONTROLLED SUBSTANCES? I'M NOT SURE HOW THEY'RE DOING IT NOW.
WE USED TO COOPERATE WITH THEM AND THEY WOULD TRANSPORT THEIRS TO THE INCINERATION SIDE.
I DON'T KNOW IF THAT'S STILL THEIR METHODOLOGY.
IT'S A LOT SAFER FOR US AND EASIER FOR US TO SEND IT IN A BOX, UNMARKED BOX THE SAME WAY THAT WE RECEIVE IT WITH A, IT'S A DEA 2 22 FORM, WHICH IS A REQUEST FOR NARCOTICS.
WE CONTACT A VENDOR, THEY SEND US THE 2 22 REQUESTING THE NUMBER OF VIALS THAT WE TOLD THEM.
WE BOX 'EM UP AND SEND IT WITH THEIR RECEIPT.
WHEN THEY GET IT, THEY WRITE DOWN HOW MANY THEY RECEIVED AND SEND US THE CONFIRMATION TO GET BACK.
AND THAT GOES IN A BOOK AND IT STAYS THERE AND LIVES THERE FOREVER.
AND IT PREVENTS US FROM TRANSPORTING VERY HIGH QUANTITIES OF VERY BAD STUFF ON THE HIGHWAYS.
UM, WELL I'M GLAD OP IQ IS WORKING WELL AND I DON'T KNOW WHO DECIDED TO USE A SOFTWARE NAMED FIREWORKS IN THE CITY OF GARLAND.
IF I MAY ADD SOMETHING TO THAT
IT WAS AN IN-HOUSE GROWN SYSTEM.
THE FIREWORKS SYSTEM WAS, IT WAS, UM, WRITTEN AND, AND BUILT BY ONE PERSON.
AND IT ALWAYS SCARED ME THAT PERSON ONE DAY WILL LEAVE.
WE WILL NOT BE ABLE TO SUPPORT THAT SOFTWARE.
WAS THAT THE SAME ONE THAT YOU WERE USING TO INVENTORY EQUIPMENT? AH, I MET HIM.
WE DID THE PD DIS DISPOSITION AUDIT.
THEY TAKE IT TO, I BELIEVE OUT STATE AND IT, IT DOESN'T HAPPEN OFTEN.
IT'S ONCE A YEAR, IF I REMEMBER CORRECTLY.
AND I PERSONALLY WITNESSED IT.
THAT WAS THE REASON WE DIDN'T PARTICIPATE WITH THEM ANYMORE BECAUSE WE WERE STORING OUR ANNUAL SUPPLIES IN OUR ARSON CLOSET MM-HMM
AND I'M LIKE, THIS MAKES ME REAL.
UH, FIRST, UH, I THINK I HEARD THAT YOU ACTUALLY ASKED FOR THIS AUDIT THAT
[01:30:01]
YOU WANTED IT TO TAKE PLACE.IS THAT CORRECT? I'M NOT THAT CRAZY, SIR.
AND IT SOUNDS TO ME THAT AT THIS POINT YOU HAVE A VERY GOOD CHECK AND BALANCE SYSTEM.
YOU HAVE A SYSTEM NOW THAT, UH, AS YOU GO FORWARD, YOU CAN RELY ON THE, UH, VALIDITY OF IT WORKING FOR YOU.
AND I DID HEAR THAT, BUT, UH, SINCE I DIDN'T, I JUST WISH MORE PEOPLE THOUGH TRULY RECOGNIZE, UH, THE AUDITING PROCESS AND WHAT IT TRULY DOES FOR US.
UH, AGAIN, NOT A SYSTEM WHERE WE'RE TRYING TO FIND FAULT WITH ANYONE, BUT ONE WHERE WE'RE ABLE TO TAKE A LOOK AT, UH, POLICIES AND PROCEDURES AND MAKE CORRECTIONS IN SUCH A MANNER THAT IT DOES SAFEGUARD, UH, DEPARTMENT SAFEGUARDS OUR PEOPLE, SAFEGUARDS OUR CITY.
SOUNDS TO ME LIKE, UH, JUST BASED ON ALL THAT YOU JUST READ THERE YEAH.
YOU'VE BEEN VERY BUSY, BUT WELL WORTH THE WHILE.
AND, AND I SAID IT NEARLY EVERY TIME I'VE BEEN IN AN AUDIT COMMITTEE MEETING THAT I'VE WORKED WITH AUDITORS THAT WERE GOTCHA.
THAT THEY, THEY, THAT'S RIGHT.
AND, UH, I'M OKAY WITH YOU FINDING FAULT.
IT DOESN'T SEEM TO BE THE MISSION.
THE MISSION SEEMS TO BE SHORE UP.
UH, ANY, ANY RISK THAT WE MAY HAVE THAT WE, WE CAN'T SHORE UP.
AND SO I APPRECIATE JEDD AND HIS TEAM AND VERY GOOD SIR.
NOW I THOUGHT WE HAD A AN ANOTHER ONE COMING IN HERE.
SO WE'RE IN VERY GOOD TIME NOW.
ALRIGHT WITH THAT, UH, I'M GOING GO AHEAD AND TURN IT BACK OVER TO YOU, JED, FOR YOUR FINALIZATION AND THEN WE'LL CALL THE QUIZ.
WELL CHAIRMAN, UM, YEAH, CHIEF DID NOT REQUEST THIS AUDIT, BUT I CAN TELL YOU EVERY TIME WE APPROACH HIM, HEY, WE'RE PLANNING ON CONDUCTING THIS AUDIT, HE WOULD ACTUALLY ASK US, CAN YOU LOOK INTO THIS OTHER AREA AS WELL? MM-HMM
AND HE, HE HAS ALWAYS BEEN VERY OPEN.
RIGHT? UM, VERY, HE WANTED TO KNOW WHAT'S GOING ON.
OBVIOUSLY HE'S AT, AT A CERTAIN LEVEL, HE DOES NOT HAVE TIME TO BE WITH THE OPERATIONS TEAM.
SO I REALLY DO APPRECIATE, I ALWAYS ENJOYED WORKING WITH, WITH CHIEF LEE HAS BEEN ONE OF THE CHIEFS THAT I HAD THE PRIVILEGE TO WORK WITH WHERE HE WAS ALWAYS OPEN BOOK.
AND, AND, AND I APPRECIATE THAT AND I, I KNOW HOW MUCH HE CARES FOR ACCOUNTABILITY.
UH, AND, AND THIS WAS NOT AN A C AUDIT TO TACKLE.
THERE WAS A LOT OF RECOMMENDATION, BUT, UH, I REALLY DO APPRECIATE IT.
AND AS, AS I HAVE SAID BEFORE, UH, OUR MISSION IS NOT TO FINDING FALLS.
OUR MISSION IS TO BRING RISK TO THE TABLE.
UH, YOU DON'T WANNA SPEND $30,000 TO FIX, FIX A $20,000 ISSUE.
BUT OUR POINT IS TO BRING THE RISK, UH, TO THE TABLE AND THEN YOU CAN MAKE THAT JUDGMENT CALL.
UM, YOU KNOW WHAT, IT'S NOT ALWAYS FINANCIAL AS WELL.
SOMETIMES IT COULD BE REPUTATIONAL, IT COULD BE HEALTH, IT COULD BE SAFETY, IT COULD BE MANY THINGS.
BUT I REALLY LIKE THE, UM, THE WORKING TOGETHER.
AND ME AND MIKE HAS, WE HAVE, AND I APPRECIATE HIM FOR SCHEDULING THIS WEEKLY MEETING.
WE DON'T AGREE ON CERTAIN THINGS.
AND HE BRINGS UP EXAMPLES LIKE ICE CREAM TRUCK AND ALL OF THAT STUFF, WHICH, WHICH KEEPS OUR, OUR RELATIONSHIP GOING.
BUT AT THE END OF THE DAY, I UNDERSTAND THAT OUR RESOURCE LIMITATIONS, UH, BUT AT THE SAME TIME, HE, HE WILL ALWAYS TELL ME, JI WANT TO KNOW WHAT'S GOING ON, MR. CHAIRMAN.
I WOULD SAY, YOU KNOW, IT'S, IT'S THE, THE RELATIONSHIP THAT WE HAVE, UH, IS VERY GOOD.
AND, AND WHAT I TELL JED IS, UH, ALL THE TIME IS I WANNA SEE IT ALL, EVEN IF IT'S THINGS THAT WE WOULD LOOK AT AND GO, YEAH, YOU WOULDN'T SOLVE THAT PROBLEM BECAUSE IT COSTS MORE TO SOLVE THAN IT'S RISKING.
WE CAN'T MAKE THOSE DECISIONS AS MANAGEMENT.
AND THE, THE COUNCIL CAN'T CONSIDER THOSE DECISIONS UNLESS WE KNOW ABOUT THEM.
AND SO THE ABILITY TO FIND STUFF, HIS JOB IS TO FIND IT, NOT TO DETERMINE WHAT TO DO ABOUT IT.
IT'S MANAGEMENT'S JOB JUST TO LOOK AND SAY, YES, I SEE THAT PROBLEM, BUT ON A $30,000 OPERATION, ARE WE GONNA SPEND X THOUSAND ON SOFTWARE? ARE WE GONNA SPEND THIS KIND OF THING? BUT I STILL NEED TO KNOW.
AND THAT'S WHAT I, I TELL CHAD AND WE HAVE A VERY GOOD RELATIONSHIP IN IN THAT HE UNDERSTANDS.
AND IT, IT, AND AS YOU'VE POINTED OUT MANY TIMES, AUDITS MAKE US BETTER.
UH, IT DOESN'T MEAN WE'RE GONNA FIX EVERYTHING WE FIND IN AN AUDIT.
SOME THINGS WE SEE IN AN AUDIT AS A RESULT OF OUR RESOURCE LIMITATIONS, IF WE HAD, YOU KNOW, HUNDREDS OF MORE EMPLOYEES, THEY WOULDN'T BE ON THE AUDIT.
[01:35:01]
SOME OF THEM ARE BECAUSE WE HAVE OVERSIGHT.WE MISSED THINGS THAT WE COULD DO WITH OUR EXISTING STAFF.
AND THOSE ARE THE KINDS OF THINGS WE NEED TO SEE AND FIX.
AND SO I'M, I'M PLEASED WITH THE, THE RELATIONSHIP AND, AND IT'S BEEN, UH, VERY POSITIVE FOR, FROM A MANAGEMENT PERSPECTIVE TO HAVE A GOOD WORKING RELATIONSHIP WITH THE AUDITOR.
WHO KNOWS THAT WE WANNA KNOW SO WE CAN MAKE THINGS BETTER.
I THINK FROM THE COMMITTEE'S PERSPECTIVE, UH, WE HAVE THAT RESPONSIBILITY OF ASSURING TOO, THAT THE AUDIT TEAM HAS THE AUTONOMY, THEY HAVE THE INDEPENDENCE THAT THEY'RE NOT AS HAS MAYBE HAPPENED IN THE PAST, UH, BEING TOLD, NO, DON'T LOOK AT THAT OR DON'T DO THIS, DON'T DO THAT.
WE WANT TO KNOW IT MAKES US BETTER.
AND ESPECIALLY AT A TIME WHEN WE'RE DEALING WITH THE FINANCES AND IT'S VERY DIFFICULT, UH, FINDING MONEY IF WE WERE TO PUT A PEN IN PAPER TO THE MONEY THAT WE HAVE BEEN ABLE TO SAVE THE RESULT OF AUDITS AND GOING INTO THE FUTURE.
THIS DEPARTMENT IS VERY MUCH NEEDED.
I ALSO WANT TO, AT THIS POINT, FRANK, WHERE ARE YOU? STAND UP, FRANK.
FRANK IS NEW TO, UH, THE AUDIT, UH, UH, AUDIT TEAM COMING OUT OF DALLAS, TEXAS.
AND, UH, I HAD OPPORTUNITY, UH, NOT LONG AGO TO, UH, TALK WITH SOME AUDITORS THAT COME TO DO THE AUDIT OF OUR DEPARTMENT EVERY YEAR WHEN THEY, THEY COME IN.
AND, UH, I KNOW YOU'RE VERY GLAD TO BE HERE.
SO WELCOME AND WE LOOK FORWARD TO WORKING WITH YOU AS WE GO FORWARD.
AND TO OUR NEWEST MEMBER
'CAUSE ONE OF THE THINGS THAT WE DO KNOW ABOUT MARGARET IS THAT SHE'S GOING TO ASK THE IMPORTANT QUESTIONS AND THEY'RE GOING TO BE PERTINENT TO WHAT IT IS THAT WE'RE DISCUSSING.
AND WE ARE SO HAPPY TO HAVE YOU AS WE GO FORWARD.
SO WITH THAT, ANYONE, ANY OTHER COMMENTS? CHAIRMAN, THIS IS OUR MOSS MASCOT.
THAT'S WHAT A GOTCHA AUDITOR LOOKS LIKE.
WITH THAT, I, I'M SHOWING 4 37 AND WE ARE IN OUR AJOUR.