[WORK SESSION]
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THIS MEETING OF THE DENTON CITY COUNCIL. TODAY IS TUESDAY, AUGUST 6TH, 2024. IT IS 2 P.M.
WE DO HAVE A QUORUM, SO I'LL CALL THE MEETING TO ORDER. FIRST THING IS CITIZEN COMMENTS ON THE CONSENT AGENDA. WE HAVE ONE SPEAKER WISHING TO SPEAK. AND THAT'S SO SOMEONE CAN DO YOU HAVE ABILITY TO KEEP THE TIMES FOR ME? THANK YOU. SO THREE MINUTES AND THAT'S ADDED. SO IF YOU CAN GIVE YOUR NAME AND YOU HAVE TO SPEAK AT THE PODIUM, PLEASE. MY NAME IS. I LIVE IN DENTON. I'VE LIVED HERE ABOUT 35 YEARS. I HAVE SOME COMMENTS ABOUT AGENDA ITEM J. CONSENT AGENDA. CONSENT AGENDA ITEM J A CLIMATE ACTION PLAN SHOULD PROVIDE THE STRATEGIES TO ENSURE THE FUTURE LIVABILITY OF DENTON. IT'S IMPORTANCE CANNOT BE OVERSTATED. IT SHOULD RECOMMEND THE POLICIES THAT WILL PROVIDE SOCIAL, ENVIRONMENTAL AND ECONOMIC STABILITY IN TIMES ALREADY SEVERELY STRESSED BY THE INCREASING IMPACTS OF CLIMATE CHANGE. GOALS MUST BE PRIORITIZED. WHAT NEEDS TO BE DONE SOONEST? WHAT ARE THE COMPARATIVE SCENARIOS OF ACTIONS TAKEN OR NOT TAKEN? ARE THERE PROPOSED TIMELINES FOR SPECIFIC INITIATIVES AND TARGET DATES FOR THEIR COMPLETION? WHICH INITIATIVES WILL CONTRIBUTE THE MOST TO ACHIEVING NET ZERO BY 2050? THE REDUCTION OF GREENHOUSE GASES MUST HAVE PRIORITY. THE MINING AND COMBUSTION OF SO-CALLED RENEWABLE NATURAL GAS IS NOT THE PATHWAY TO A CARBON FREE AND STABLE FUTURE. MORE RENEWABLE RESOURCES SUCH AS WIND AND SOLAR SHOULD BE HIGHLY PRIORITIZED.
MORE ELECTRIFICATION POWERED BY CLEAN RENEWABLES IS THE RIGHT WAY TO GO. THE COST SAVINGS OF TAKING MEANINGFUL ACTIONS NOW RATHER THAN LATER CONFRONTING THE DISASTROUS COSTS OF INACTION AND PIECEMEAL POLICIES, SHOULD BE DOCUMENTED IN THE PLAN. THE DOWNSIDES OF INACTION AND SHORTSIGHTEDNESS MUST BE RECOGNIZED BECAUSE THEY ARE JUST AS IMPORTANT AS THE UPSIDES. IT IS IMPERATIVE THAT THE CLIMATE ACTION PLAN MAKES CLEAR THE REALITY OF OUR CHALLENGES, AND THE NECESSITY FOR TIMELY AND PRODUCTIVE ACTIONS TO MEET THEM. THANK YOU VERY MUCH. OKAY. THANK YOU, THAT TAKES US TO OUR NEXT SECTION, REQUEST FOR CLARIFICATION ON AGENDA ITEMS LISTED ON THE AGENDA FOR PUBLIC HEARING. INDIVIDUAL CONSIDERATION. SO, QUESTIONS, CLARIFICATION OF THE AGENDA. ANY QUESTIONS? SEEING NONE TAKES US TO OUR FIRST WORK SESSION,
[A. Receive a report, hold a discussion, and give staff direction regarding Audit Project 040 - Vendor Management.]
THAT'S THREE A ID, 24249. RECEIVE REPORT, WHOLE DISCUSSION. GIVE STAFF DIRECTION REGARDING AUDIT. PROJECT 040. VENDOR MANAGEMENT. HELLO. MAYOR AND COUNCIL. I'M TRYING TO PULL THIS UP, BUT THERE'S STUFF IN THE WAY. THERE WE GO. ALL RIGHT, I'M MADISON RAUSCHER. I'M DENTON CITY AUDITOR. I'M GOING TO PRESENT, FINDINGS FOR THIS AUDIT OF THE CITY'S VENDOR MANAGEMENT ACTIVITIES. SO GETTING STARTED, LIKE MOST ORGANIZATIONS, THE CITY PURCHASES GOODS AND SERVICES FROM VENDORS TO ACCOMPLISH ITS OBJECTIVES. VENDOR MANAGEMENT IS THE PROCESS OF ENSURING THAT VENDORS DELIVER THESE GOODS AND SERVICES AS AGREED UPON. IN GENERAL, THERE ARE THREE PHASES OF THIS PROCESS, ONCE A NEED FOR GOODS AND SERVICES IDENTIFIED. THE FIRST IS SOLICITATION, DURING WHICH THE CITY SELECTS A VENDOR TO DO BUSINESS WITH. SECOND IS CONTRACTING, DURING WHICH THE CITY AND SELECTED VENDOR AGREE HOW THE NEED WILL BE FULFILLED BY THE VENDOR AND WHAT THE VENDOR WILL RECEIVE IN RETURN, WHICH IS USUALLY A PAYMENT. AND FINALLY, CONTRACT MANAGEMENT, DURING WHICH THE VENDOR, VENDOR, AND CITY EACH FULFILL THEIR PART OF THE AGREEMENT. DURING FISCAL YEAR 2022 AND 2023, THE CITY AUTHORIZED THE EXPENDITURE OF ABOUT $965 MILLION THROUGH VENDOR CONTRACTS, AS PART OF THIS PROCESS, SPECIFICALLY, THE AUDIT EVALUATED THE VENDOR VENDOR DUE DILIGENCE, CONTRACT MANAGEMENT, AND VENDOR INFORMATION ADMINISTRATION PROCESSES. SO I'LL BEGIN BY DISCUSSING, HOW THE CITY CONDUCTS VENDOR DUE DILIGENCE. DUE DILIGENCE IS THE PROCESS OF ENSURING A VENDOR IS REPUTABLE[00:05:03]
AND ABLE TO MEET PERFORMANCE REQUIREMENTS BEFORE ENTERING INTO AN AGREEMENT FOR GOODS AND SERVICES, AT MINIMUM, BEST PRACTICES SUGGEST THAT DUE DILIGENCE INVOLVE VERIFYING A VENDOR'S IDENTITY AND LEGITIMACY, ENSURING THEY ARE PROPERLY LICENSED AND INSURED, AND EVALUATING PROBABLE PERFORMANCE. IN ADDITION, ENHANCED DUE DILIGENCE CHECKS SUCH AS ASSESSING CYBERSECURITY RISK ARE RECOMMENDED FOR VENDORS PERFORMING HIGHER RISK WORK.THIS EVALUATION IS GENERALLY PERFORMED AS PART OF THE SOLICITATION PROCESS, WHICH FOR GOVERNMENTS ARE REGULATED BY TEXAS STATE LAW. OUR REVIEW FOUND THAT SOLICITATION PROCESSES THAT THE CITY SOLICITATION PROCESSES COMPLIED WITH STATE PROCUREMENT REGULATIONS, AND THAT THE CITY HAD ESTABLISHED GENERALLY COMPREHENSIVE RISK REDUCTION CONTRACT PROCESSES THAT WERE CONSISTENTLY FOLLOWED. IN ADDITION, ADEQUATE BASIC VENDOR DUE DILIGENCE IS PERFORMED FOR MOST VENDORS, INCLUDING EVALUATING PROBABLE PERFORMANCE, VERIFYING IDENTITY AND LEGITIMACY, AND REQUESTING REPUTATIONAL RISK INFORMATION.
DEPARTMENTS MAY ALSO REQUEST ADDITIONAL INFORMATION FOR DUE DILIGENCE BASED ON DRAFTED PERFORMANCE REQUIREMENTS. HOWEVER, THERE'S NO WRITTEN GUIDANCE FOR DEPARTMENTS ON WHAT ENHANCED DUE DILIGENCE MAY BE PRUDENT. FOR THIS REASON, WE'RE RECOMMENDING PROCUREMENT DEVELOP GUIDANCE ON ENHANCED DUE DILIGENCE PROCEDURES, ESPECIALLY FOR CYBERSECURITY RISK, WHICH THEY AGREED TO DO BASED ON THEIR MANAGEMENT RESPONSE. IN ADDITION TO DUE DILIGENCE, THE CITY'S RECENTLY ADOPTED A COMMITMENT TO INCLUSION POLICY. IN 2023 AND HAS BEGUN ACTUALIZING THIS COMMIT COMMITMENT WITHIN THE CITY'S CONTRACTING BY TRACKING THE CITY'S PROCUREMENTS WITH HISTORICALLY UNDERUTILIZED BUSINESSES OR HUBS. BEST PRACTICES RECOMMEND THAT INCLUSIVE CONTRACTING PROGRAMS INCLUDE, HUB UTILIZATION GOALS, TRAINING AND REPORTING, INCLUDING AT THE SUBCONTRACTOR LEVEL. BASED ON THIS, WE'RE RECOMMENDING THAT PROCUREMENT INCREASE HUB PROCUREMENT, PROCUREMENT, UTILIZATION, TRANSPARENCY BY CAPTURING ADDITIONAL HUB ELIGIBILITY DETAILS AND REPORTING HUB UTILIZATION TO THE PUBLIC AT LEAST ANNUALLY. IN ADDITION, THE CITY DOES NOT CURRENTLY REQUIRE VENDORS TO SUBMIT ANY CONTRACT SUBCONTRACTOR INFORMATION. GATHERING THIS INFORMATION WOULD NOT ONLY ASSIST WITH UNDERSTANDING HUB VENDOR PROCUREMENT UTILIZATION IN MORE DETAIL, BUT COULD ALSO BE USED TO UNDERSTAND BETTER WHO THE CITY IS PAYING AND TO EVALUATE BIDS, FURTHER FOR MISAPPROPRIATION BASED ON THEIR MANAGEMENT RESPONSE. PROCUREMENT PLANS TO WORK WITH DEPARTMENTS TO IMPROVE TO IMPLEMENT BEST PRACTICES IN THESE AREAS. LASTLY, WE FOUND THAT THE SOLICITATION PROCESS GENERALLY TAKES LONGER THAN EXPECTED. HOWEVER, THIS APPEARS TO BE MOSTLY DUE TO DEPARTMENT DELAYS AND FINALIZING VENDOR SELECTION. FURTHER, THE CONTRACT EXECUTION PROCESS ALSO TOOK LONGER THAN EXPECTED FOR ABOUT TWO THIRDS OF REVIEWED SOLICITATIONS SINCE THE VENDOR SELECTION FINALIZATION PROCESS IS CLEARLY COMMUNICATED AND AVAILABLE, RESOURCES AND CONTRACT EXECUTION IS DRIVEN BY COUNCIL MEETINGS, WE RECOMMENDED THAT PROCUREMENT CONSIDER UPDATING TIMELINESS EXPECTATIONS TO AID DEPARTMENTS WITH PROCUREMENT PLANNING, WHICH THEY PLAN TO EVALUATE BASED ON THEIR MANAGEMENT RESPONSE. NEXT ONCE AN AGREEMENT IS REACHED, THE VENDOR AND THE CITY ARE BOTH RESPONSIBLE FOR FULFILLING THEIR PROMISES AS LAID OUT IN THE CONTRACT. IN GENERAL, THESE PROMISES INCLUDE ONE. DELIVERING GOODS OR SERVICES WITHIN A SET TIME, TWO MEETING THE QUALITY STANDARDS IN THE AGREEMENT, AND THREE PAYING FOR THE GOODS OR SERVICES AT THE AGREED UPON RATE. TO ENSURE THAT VENDORS MEET THESE OBLIGATIONS. BEST PRACTICES SUGGEST AN ORGANIZATION HAVE A STRONG CONTRACT MANAGEMENT PROGRAM WITH CLEARLY DEFINED RESPONSIBILITIES, PERIODIC TRAINING AND CONTRACT MANAGEMENT TOOLS TO VERIFY QUALITY ASSURANCE. BASED ON OUR AUDIT, WE FOUND THAT THE CITY IS LIMITED CONTRACT MANAGEMENT RESOURCES FOR STAFF, MOSTLY DUE TO A LACK OF CLEAR RESPONSIBILITY. THE PROCUREMENT DEPARTMENT HAS RECENTLY BEGAN PROVIDING CONTRACT MANAGEMENT TOOLS TO STAFF. ONCE CONTRACTS ARE EXECUTED AND CONTRACT MANAGEMENT TRAINING WAS DEVELOPED AND HELD ONCE IN 2022. HOWEVER, ADDITIONAL TRAINING HAS NOT OCCURRED. BASED ON THIS, WE'RE RECOMMENDING THAT THE CITY MANAGER'S OFFICE CONSIDER CREATING A FORMAL CONTRACT MANAGEMENT PROGRAM OR OFFICE, AND THAT CONTRACT MANAGEMENT TRAINING AND GUIDANCE BE PROVIDED TO EMPLOYEES PERIODICALLY AND BASED ON THEIR MANAGEMENT RESPONSE. PROCUREMENT BEGINS TO PLANS TO BEGIN PROVIDING THIS TRAINING. AND THE CMO, IS EVALUATING WAYS TO CENTRALIZE CONTRACT MANAGEMENT SUPPORT IN THE FUTURE. SIMILARLY BEST PRACTICES SUGGEST ORGANIZATIONS SHOULD ESTABLISH CONTROLS OVER PAYMENTS TO ENSURE THAT A PURCHASE IS AUTHORIZED, RECEIVED, AND BILLED ACCURATELY BEFORE PAYMENT IS MADE USING THE THREE WAY MATCH CONTROL, AS SHOWN IN THE TABLE ON THE SLIDE. THIS CONCEPT RELIES ON CONTRACTS CLEARLY IDENTIFYING THE GOODS AND SERVICES TO BE PROVIDED, AND THEIR ASSOCIATED PRICE. ONCE THE CONTRACT IS ESTABLISHED, A PURCHASE ORDER CAN BE ISSUED TO REQUEST THE GOODS AND SERVICES BE DELIVERED. THE PURCHASE ORDER SHOULD CLEARLY MATCH THE CONTRACT TO ENSURE THAT ONLY AUTHORIZED ITEMS ARE ARE BOUGHT.
A THREE WAY MATCH CONTROL THEN RELIES ON INDIVIDUALS SEPARATELY VERIFYING THAT THE ORDERED GOODS OR SERVICES WERE DELIVERED BY CREATING A RECEIVING DOCUMENT AND THAT THE INVOICE PRICE IS ACCURATE AS SHOWN IN THE TABLE ON THE SLIDE. BASED ON OUR REVIEW, WE FOUND THAT MOST CONTRACTS GENERALLY OUTLINE THE PRICE AND PERFORMANCE REQUIREMENTS. CLEARLY, THOUGH,
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MOST PERFORMANCE REQUIREMENTS WERE FORMATTED AS A SCOPE OF SERVICES REQUIRED, MEANING THAT THEY DID NOT INCLUDE SPECIFIC PERFORMANCE METRICS OR GUARANTEES SUCH AS MILESTONES, TIMELINES, OR QUALITY MEASURES. FURTHER, MANY PURCHASE ORDERS USED A LUMP SUM FORMAT WHICH DOES NOT INCLUDE ANY DETAILS ABOUT THE SPECIFIC PRICE OR DELIVERABLES BEING ORDERED, WEAKENING THE THREE WAY MATCH CONTROL. SIMILARLY, THE ACCURACY OF SOME INVOICES COULD NOT BE VERIFIED BECAUSE THE PRICING STRUCTURE DID NOT MATCH THE CONTRACT. THESE STRUCTURAL INCONSISTENCIES APPEAR TO BE IMPACTING PAYMENT PROMPTNESS, AS STAFF IS NOT ALWAYS ENTERING RECEIVING DOCUMENTS, TIMELY. IN ADDITION, RESPONSES TO CONTRACT MANAGER SURVEY INDICATED THAT STAFF WOULD APPRECIATE ADDITIONAL RESOURCES RELATED TO A CONTRACT RELATED TO VENDOR RELATIONSHIP MANAGEMENT AND BILLING ACCURACY VERIFICATION. BASED ON THIS, WE'RE RECOMMENDING TRAINING, FOR WRITING PERFORMANCE REQUIREMENTS BE DEVELOPED AND THAT PURCHASE ORDERS BE FORMATTED MORE CLEARLY TO MORE CLEARLY ALIGN WITH CONTRACT DELIVERABLES TO HELP ENCOURAGE CONSISTENCY. LASTLY, WE FOUND THAT PURCHASE ORDERS ARE REVIEWED AND APPROVED BEFORE ISSUANCE. HOWEVER, THERE IS NO STANDARDIZED PROCESS TO REVIEW AND APPROVE CHANGE ORDERS. OR ESSENTIALLY UPDATES TO PURCHASE ORDERS TO INCREASE WHICH INCREASES THE RISK OF MISUSE PROCUREMENT BASED ON THEIR MANAGEMENT RESPONSE, PROCUREMENT HAS AGREED TO DEVELOP PROCESSES TO ADDRESS THESE ISSUES. FINALLY IN ORDER TO ISSUE A PAYMENT, A VENDOR MUST BE SET UP IN THE CITY'S FINANCIAL SYSTEM, MAKING IT CRITICAL TO ENSURE THIS VENDOR INFORMATION IS ACCURATE AND AUTHORIZED. TO HELP ENSURE THIS BEST PRACTICES RECOMMEND ACCESS TO VENDOR UP TO UPDATING VENDOR INFORMATION BE LIMITED AND THAT SPECIFICALLY INDIVIDUALS WHO CAN UPDATE VENDOR INFORMATION SHOULD NOT BE ABLE TO ALSO ISSUE PURCHASE ORDERS OR PROCESS PAYMENTS IN THE ACCOUNTS PAYABLE SYSTEM BASED ON OUR REVIEW, WE FOUND THAT ACCESS TO UPDATE VENDOR INFORMATION HAD GENERALLY BEEN LIMITED TO THE PURCHASE ASSISTANT ROLE, SECURITY ROLE, AND THE CITY'S FINANCIAL SYSTEM. HOWEVER, THIS ROLE ALSO SEEMED TO ALLOW USERS TO ISSUE AND CHANGE PURCHASE ORDERS. IN ADDITION, FOR EMPLOYEES WHO ARE PRIMARILY RESPONSIBLE FOR ISSUING PURCHASE ORDERS WERE INCLUDED IN THE SECURITY GROUP. FURTHER, THE ACCOUNTS PAYABLE SUPERVISOR IS CURRENTLY RESPONSIBLE FOR, CODING OF VENDORS FORM 1099 TAX STATUS IN THE FINANCIAL SYSTEM, WHICH REQUIRES THAT INDIVIDUAL TO HAVE THE ABILITY TO CHANGE VENDOR INFORMATION EVEN THOUGH THEY ARE RESPONSIBLE FOR ISSUING PAYMENTS. FOR THESE REASONS, WE ARE RECOMMENDING A SEPARATE SECURITY ROLE BE ESTABLISHED TO SEPARATE VENDOR INFORMATION, UPDATE AND PURCHASE ORDER ISSUANCE RESPONSIBILITIES, AND THAT FORM 1099 TAX STATUS BE CODED FOR VENDORS WHEN THEY ARE CREATED BY PROCUREMENT STAFF. THE AP SUPERVISOR'S ABILITY TO CHANGE VENDOR INFORMATION SHOULD ALSO BE REMOVED. PROCUREMENT HAS AGREED TO ADDRESS THESE INFORMATION SECURITY ACCESS ISSUES. LASTLY, ACCORDING TO PROCUREMENT STAFF, THERE IS NOT CURRENTLY A PROCESS TO VERIFY THAT CREATED AND CHANGED VENDOR VENDOR INFORMATION RECORDS ARE ACCURATE AND APPROPRIATE. IN ADDITION, THE CITY'S CURRENT FINANCIAL SYSTEM DOES NOT COMPREHENSIVELY TRACK CHANGES MADE TO THIS DATABASE. INSTEAD, ONLY THE LAST CHANGE IS RECORDED FOR EACH RECORD. BASED ON OUR REVIEW OF VENDOR MASTER RECORDS, THE TAX ID OF ABOUT 78% COULD, SORRY, 78% COULD BE VERIFIED AS ACCURATE. FOR THIS REASON, WE RECOMMENDED PROCUREMENT ESTABLISH A PROCESS TO PERIODICALLY REVIEW UPDATES TO ENSURE THEY ARE ACCURATE AND APPROPRIATE, WHICH THEY AGREED TO DO MONTHLY. SO IN SUMMARY, WE ISSUED 14 RECOMMENDATIONS, ALL OF WHICH THE DEPARTMENTS AGREED OR PARTIALLY AGREED WITH. BASED ON THIS RESPONSE, WE BELIEVE THE IDENTIFIED RISKS WILL BE APPROPRIATELY ADDRESSED AND WILL CONDUCT A FOLLOW UP REVIEW, PROBABLY IN FISCAL YEAR 2028, ONCE THE CITY'S NEW ENTERPRISE RESOURCE PLANNING SYSTEM HAS BEEN IMPLEMENTED. ANY QUESTIONS ON THIS AUDIT? OKAY. THANK YOU. QUESTIONS FOR STAFF. AND YOU HAVE TO PULL THAT DOWN SO I CAN SEE. SORRY. SORRY ALL RIGHT. REPRESENTATIVE FROM DISTRICT TWO. THANK YOU, YOU KNOW, ONE OF THE QUESTIONS I HAD, AFTER THE PRESENTATION WAS, DO WE, SORT AND MERGE VENDORS, OR DO WE JUST INTRODUCE NEW, NEW VENDORS THAT ARE POTENTIALLY THE SAME VENDORS OVER AND OVER AND OVER AGAIN, SO AS PART OF THE VENDOR CREATION PROCESS, PROCUREMENT DOES CHECK IF THEIR VENDOR HAS ALREADY BEEN CREATED, THERE ARE WITHIN OUR SYSTEM DO DUE TO SOME OF THE NUANCES OF IT, THERE ARE DUPLICATE VENDORS TO SOME DEGREE THAT WE SOME OF THEM GENERALLY BECAUSE OF ADDRESS, ADDRESSES WANTING TO SEND A CHECK TO ONE PLACE, BUT THAT'S NOT ACTUALLY WHERE THE HEADQUARTERS IS LOCATED, IF THAT MAKES SENSE, AND THEN THERE IS ALSO A PROCESS TO INACTIVATE VENDORS, AFTER A CERTAIN PERIOD OF TIME. DOES THAT ANSWER YOUR QUESTION? BUT LET ME TRY IT A DIFFERENT WAY. WE DO HAVE A WAY OF STREAMLINING DUPLICATES IN VENDORS. YES I[00:15:09]
WOULD I WOULD SAY THERE'S NOT GENERALLY A REVIEW FROM THE DEPARTMENT'S PERSPECTIVE OF ARE THERE DUPLICATE VENDORS OUT THERE? OKAY THAT I WOULD ENCOURAGE US TO, TO LOOK AT THAT AS WE GO FORWARD. ANY OTHER QUESTIONS? I JUST HAVE TWO NOTES. NOT REALLY QUESTIONS FOR THE CITY MANAGER, ONE ON THE PROCUREMENT SIDE OF THINGS IN THE DEPARTMENT, I'D ASK THAT IN THIS REEVALUATION THAT THEY LOOK AT REAL OUTCOMES VERSUS JUST CHECKING A BOX. I SAY THAT TO SAY, THAT THE HUB PROGRAM WISE, A GOOD RESOURCE. IT IT'S NOT UPDATED RIGHT. SO, EXAMPLE, THERE'S A VERY SIGNIFICANT CONSULTANT OUT THERE THAT'S $1 BILLION COMPANY. THE INDIVIDUAL OWNER IS WORTH $1 BILLION. AND THEY'RE CLASSIFIED AS A HISTORICALLY UNDERUTILIZED BUSINESS, SO ONCE YOU'RE IN, YOU'RE IN, VERSUS TRULY SERVING THOSE HISTORICALLY UNDERUTILIZED BUSINESSES. SO WHATEVER, AS THEY'RE GOING THROUGH THAT, THAT'S GOING TO BE A QUESTION OF MINE. JUST MAKING SURE WE'RE, LOOKING INTO THOSE VENDORS TO MAKE SURE. OKAY. YEAH, YOU HAVE THE CERTIFICATION, BUT DO YOU MEET THE INTENT OF WHAT IT WAS, WHAT IT INTENDS TO DO? AND THEN THE SECOND THING IS, WHEN YOU AND I TALKED ABOUT THIS JUST SO I WOULD BE GOOD TO TRACK PURCHASES DATE, PURCHASE DATE ACTIVATED, AND PERCENTAGE THEREOF, MEANING WE DON'T WANT TO HAVE SOMETHING THAT WE'VE PURCHASED THAT THEN DOESN'T GET UTILIZED. RIGHT. SO THAT KIND OF RAISES AWARENESS TO SAY, OKAY, WE HAVE THIS THING, ARE WE USING IT? RIGHT. AND SO THOSE TWO THINGS WOULD BE GOOD MEASURABLES. SO THANK YOU FOR THAT OKAY. THANK YOU MADISON.THAT TAKES US TO ITEM. OH I'M SORRY I DIDN'T SEE YOU, REPRESENTATIVE FROM DISTRICT SIX. THANK YOU, COUNCIL PERSON. JESTER. FIRST OF ALL, I JUST WANT TO SAY THANK YOU FOR ALL OF THE WORK. OBVIOUSLY, THERE WAS A LOT OF DUE DILIGENCE THAT YOU WENT THROUGH, AND, SURE APPRECIATE ALL OF THAT. AND THE WAY THAT IT'S BEEN PRESENTED HERE TODAY, THERE IS QUITE A GAP BETWEEN THE EXPECTATION OF MAKING A DECISION IN THAT FIRST BAR GRAPH, FROM WHAT IS HAPPENING NOW. AND I THINK THE NEXT SLIDE SPOKE TO SOME OF THE REASONS FOR THAT, INCLUDING, EVERYONE MAYBE WAS NOT SURE OF THEIR ROLE OR WHO NEEDS TO CHECK IT OFF. WHAT ARE THE REALISTIC EXPECTATIONS AND DECREASING THAT? I MEAN, I JUST SAW THAT AND THOUGHT, WOW, THAT'S NOT THAT'S NOT SOMETHING THAT'S GOING TO HAPPEN OVERNIGHT. WAS THAT ADDRESSED AS FAR AS HOW TO DECREASE THAT? AND WHAT WAS THE FEEDBACK, I THINK THAT WE DID NOT ISSUE A RECOMMENDATION TO THAT EXTENT BECAUSE WE FOUND THAT THERE WERE RESOURCES THAT MADE IT CLEAR TO PEOPLE GOING THROUGH THE THAT PROCESS, WHAT THE EXPECTATION WAS. I THINK THERE IS POTENTIALLY SOME ADDITIONAL COMMUNICATION THAT COULD OCCUR, BUT THE RESOURCES EXIST. I'M NOT I THINK PART OF IT IS, IT'S THERE'S A WHEN YOU'RE GOING THROUGH THE PROCES, THE, THE BID, YOU HAVE A MEETING WHERE YOU'RE LIKE, THESE ARE THE BIDS, RIGHT? AND THE RESULTS, AND THEN YOU'RE, THERE'S A LIKE A NEXT STEP. AND I THINK SOMETIMES IT MIGHT JUST BE EASY TO THINK, WELL, WE'RE DONE. WE DID THE BID PROCESS. AND THOSE TEAMS USUALLY HAVE MULTIPLE PEOPLE ON THEM AS WELL, AND SO IT MIGHT BE UNCLEAR WHO'S RESPONSIBLE FOR THAT NEXT STEP. SO I THINK THAT THERE'S SOME AREAS WHERE THAT COULD BE IMPROVED, BUT BECAUSE IT'S KIND OF A DECENTRALIZED PIECE, AT THAT POINT, IT WAS HARD TO ISSUE A RECOMMENDATION TO SAY, THIS IS REALLY WHAT'S GOING TO FIX IT.
DOES THAT MAKE DOES THAT HELP? YES, YES. AND ANOTHER QUESTION, PLEASE. YEAH THANK YOU, ALSO WITH THE STREAMLINING OF THE PROCESS IS THAT ALSO INCLUDES STREAMLINING OF THE, CONTRACTS.
IS THAT SOMETHING THAT WHEN YOU WERE TALKING ABOUT STANDARDIZING, IS THAT SOMETHING THAT THEN WOULD LEGAL WOULD NEED TO WORK WITH IN ORDER TO STANDARDIZE THOSE TYPES OF CONTRACTS AS OPPOSED TO JUST TAKING WHAT THE VENDOR'S GIVING US? WE'RE GOING TO START IMPOSING, HEY, HERE'S HERE'S THE STARTING POINT. NOW, OF COURSE, EVERYTHING'S UP TO NEGOTIATION.
HOWEVER HERE'S WHAT WE START WITH. IS THAT SO WE'RE TALKING ABOUT STANDARDIZED CONTRACTS, A COUPLE OF VARIATIONS, AND WE LOOKED BASICALLY AT THE CITY ATTORNEY'S OFFICE HAD PUT OUT SOME GUIDANCE ALONG ALONG LIKE YOU NEED TO MAKE SURE THAT THE CITY IS INDEMNIFIED THINGS, CERTAIN THINGS LIKE THAT. SO PART OF THE REVIEW WAS, DO WE HAVE THOSE THINGS IN THE CONTRACT? BECAUSE WE'RE GENERALLY USING STANDARDIZED CONTRACTS? THE ANSWER WAS YES.
THERE ARE CERTAIN INSTANCES GENERALLY WITH TECHNOLOGY VENDORS WHERE THEY'RE LIKE, YOU GOT TO AGREE TO OUR TERMS AND SERVICES AND WE DO WORK SOME WITH THEM TO SAY, WELL, WE NEED TO MAKE SURE THESE THINGS ARE IN THERE, SO THE I THINK PART OF THE DELAY IN THAT PIECE, IS, IS JUST HEARING BACK FROM THE VENDOR OCCASIONALLY. OKAY. DOES THAT HELP? YES, ABSOLUTELY. AND JUST ONE LAST QUESTION. AS FAR AS REQUIRING SUBCONTRACTOR INFORMATION, I'M SURE THERE ARE
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GOING TO BE TIMES THAT THEY DON'T KNOW WHO THEY'RE ACTUALLY GOING TO SUBCONTRACT WITH THEIR, YOU KNOW, VARIOUS GROUPS THAT THEY USE DEPENDING ON THE TIMING. AND IT CAN EVEN BE DOWN TO THE DAY, YOU KNOW, WHO HAS A CREW AVAILABLE. SO IS THIS I JUST WANT TO MAKE SURE THAT THIS REQUIREMENT WON'T STOP PROGRESS OR IMPEDE PROGRESS. THIS IS SOMETHING THAT'S BEING, ADVISED, WHICH, YOU KNOW, I THINK IF THE INFORMATION IS THERE IS GOOD. BUT THE FACT THAT IT HASN'T BEEN COLLECTED BEFORE AND I JUST DON'T KNOW HOW USE THE VENDORS ARE TO SUPPLYING THAT INFORMATION, IF THAT IS AN INDUSTRY NORM OR, RIGHT, THE RECOMMENDATION WAS TO, EVALUATE TO SOME DEGREE BASED ON INDUSTRY NORMS BECAUSE, YOU KNOW, LIKE WITH, CONSTRUCTION THINGS LIKE THAT. IT'S GENERALLY A PROVIDER. IT'S GENERALLY INFORMATION THAT THEY'RE ABLE TO PROVIDE.CERTAINLY AFTER THE CONTRACT IS AWARDED. SO, THE RECOMMENDATION WAS TO NOT NOT REQUIRE THAT AS PART OF THE SOLICITATION PROCESS, BUT POST-AWARD AND THEN AND THEN TRACKING THAT INFORMATION, SO THAT WE COULD CONTINUE TO HAVE, TO IMPROVE OUR VISIBILITY INTO OUR OWN PURCHASES, WHO WE'RE ACTUALLY WORKING WITH. IS THAT OKAY? YES. AND THANK YOU. SO MUCH. THANK YOU FOR YOUR TIME. THIS IS JUST FASCINATING AND GOOD. AND THANK YOU, EVERYONE ELSE, FOR YOUR, GRACE AND LETTING ME ASK A FEW QUESTIONS. THANK YOU, MISS. GO RIGHT AHEAD, REPRESENTATIVE.
DISTRICT ONE. GREAT JOB AS USUAL. THANK YOU FOR BEING THOROUGH AND EASILY UNDERSTOOD.
I APPRECIATE THAT PART, MY. I WAS HEARING YOU SAY SOMETHING IN REGARDS TO CONNECTING THE NEXT STEPS AND THERE WASN'T ANY CLEA, THERE WASN'T ANY CLEAR, UNDERSTANDING AS TO WHO WILL BE RESPONSIBLE FOR CONNECTING THE NEXT STEPS. DOES ANY OF THIS GO ALONG WITH A HUMAN RESOURCE? CONNECTION AS TO LOOKING AT JOB DESCRIPTIONS? AND, YOU KNOW, FOR THOSE FOLKS OVER IN THAT AREA, DO WE NEED TO TIGHTEN THAT UP, YOU KNOW, SO PEOPLE CAN KNOW WHAT THEIR RESPONSIBILITY IS TO THIS, I DON'T THINK SO. SO I THINK THE CURRENT ISSUE IS WE HAVE GOTTEN MUCH BIGGER AS A CITY. RIGHT, CONTRACT MANAGEMENT HAS TO BE A DECENTRALIZED PROCESS BECAUSE YOU HAVE TO HAVE THE SUBJECT MATTER EXPERT, DOING THE ACTUAL MANAGEMENT, I THINK THERE COULD BE ADDITIONAL SUPPORT FOR THOSE INDIVIDUALS THAT WAS MORE CENTRALIZED. RIGHT. SO WE RECOMMENDED, THAT THE CITY MANAGER'S OFFICE CONSIDER CREATING KIND OF A CONTRACT MANAGEMENT OFFICE OR MORE OF A CENTRALIZED PROGRAM, WHICH IT HAD KIND OF STARTED DOING A COUPLE OF YEARS AGO. AND THEN DUE TO SOME BUDGET, DUE TO SOME BUDGETARY ISSUES, THAT, RESPONSIBILITY KIND OF, JUST KIND OF FELL IT JUST DIDN'T CONTINUE HAPPENING. RIGHT. SO, IT'S KIND OF RE, THE RECOMMENDATION WAS INTENDED TO KIND OF REFOCUS ON WE NEED TO HAVE THESE RESOURCES AVAILABLE SO THAT WE CAN MANAGE OUR CONTRACTS A LITTLE, A LITTLE MORE EFFECTIVELY. MR. CITY MANAGER, I THINK YOU HEARD MADISON MENTION BEFORE SHE STARTED HER PRESENTATION THAT THIS WILL ALL HOPEFULLY FALL INTO PLACE WITH THE NEW ERP. THAT'S AN ENTERPRISE RESOURCE PLANNING. IT TAKES DIFFERENT TECHNOLOGY PIECES AND PUTS IT WHERE YOU CAN ACTUALLY TALK TO EACH OTHER. ONE OF THE PROBLEMS WE'RE HAVING, AND THIS AREA IS EVERYTHING. A LOT OF IT HAS TO BE DONE BY HAND. AND THEY'RE NOT THEY'RE NOT TALKING TO EACH OTHER. SO A LOT OF THE THINGS SHE'S SEEING IS BECAUSE OF THAT. THE ERP IS A MASSIVE UNDERTAKING, BUT SOMETHING IS NECESSARY THAT'S IN THAT'S COMING NOW, SHOULD TAKE CARE OF A LOT OF THIS. BUT THE INFORMATION ABOUT CONTRACT MANAGEMENT I AGREE WITH MADISON AND WE NEED TO LOOK AT THAT. BUT I WILL SAY ALL THE OTHER ISSUES, I THINK, WILL PROBABLY MOST LIKELY BE ADDRESSED IN THE ERP.
AND THEN, OF COURSE, WE'LL HAVE TO LOOK AT, THE BETTER TRAINING FOR OUR STAFF, BUT THAT WILL BE A WHOLE NEW BALL OF WAX OF TRAINING WITH THE ERP. OKAY. THANK YOU. ANYTHING ELSE? GREAT.
[B. Receive a report, hold a discussion, and give staff direction regarding Audit Project 023 - Payroll Administration: Follow-Up Review.]
THANK YOU. TAKES ITEM B, ID 24250 RECEIVE REPORT. HOLD DISCUSSION AND GIVE STAFF DIRECTION REGARDING AUDIT PROJECT 023 PAYROLL ADMINISTRATION. FOLLOW UP REVIEW. HELLO. MAYOR AND COUNCIL MADISON ROSHA STILL DIDN'T SAY THE AUDITOR FOR NOW, I'M HERE TO PRESENT OUR FINDINGS FROM THIS FOLLOW UP REVIEW, SO AS A REMINDER, AUDIT FOLLOW UP REVIEWS ARE INTENDED TO PROVIDE INFORMATION ON WHAT CHANGES HAVE BEEN MADE IN RESPONSE TO AN ISSUED AUDIT. SO THIS REVIEW WAS BASED ON THE RECOMMENDATIONS AND MANAGEMENT RESPONSES ORIGINALLY COMPILED IN THE AUDIT OF PAYROLL ADMINISTRATION, WHICH WAS INITIALLY ISSUED IN SEPTEMBER OF[00:25:01]
2021, THE AUDIT OF PAYROLL ADMINISTRATION EVALUATED THE PAYROLL ADMINISTRATION PROCESSE, INCLUDING PROCESSING PAYROLL UPDATES, EMPLOYEES TIME CARD ADJUSTMENTS AND APPROVALS, OVERTIME PAYMENTS, TAX PAYMENTS, PAYROLL REVIEW AND APPROVAL PROCEDURES, RECORD KEEPING AND PAYROLL PROCESSING. THESE PROCESSES ARE CRITICAL TO ENSURING THAT EMPLOYEE PAYROLL PAYMENTS ARE ACCURATE, AND THIS AUDIT FOLLOW UP FOUND THAT IMPROVEMENTS, THAT WE IDENTIFIED AS PART OF THAT INITIAL AUDIT HAD BEEN MADE, INCLUDING IN PAYROLL UPDATES, CALCULATIONS AND PAYMENTS. SO I'LL GET TO A COUPLE OF THE DETAILS. SO TO ENSURE ALL CITY EMPLOYEES ARE PAID ACCURATELY, THE PAYROLL MUST BE UPDATED REGULARLY TO REFLECT EMPLOYEE CHANGES, INCLUDING NEW HIRES, TERMINATIONS AND PAY RATE CHANGES. THE ORIGINAL AUDIT FOUND THAT THE PAYROLL UPDATE PROCESS HAD APPROPRIATELY SEPARATED THESE PAYROLL UPDATE DUTIES, STILL ONLY ONE STAFF MEMBER IN HR UPDATED THE FINANCIAL SYSTEM AT THE TIME OF THE ORIGINAL AUDIT, INCREASING THE RISK OF ERROR AND FRAUD AS THERE WAS NO PROCESS IN HR TO VERIFY THAT EMPLOYMENT CHANGES MADE IN THE FINANCIAL SYSTEM WERE APPROPRIATELY AUTHORIZED.SINCE THEN, HR CREATED A PROCESS TO REVIEW A SAMPLE OF THESE CHANGES MONTHLY TO VERIFY THEIR ACCURACY AND APPROPRIATENESS. IN ADDITION, THE DEPARTMENT HAS TRAINED AN ADDITIONAL ADDITIONAL STAFF MEMBERS ON HOW TO MAKE UPDATES TO THE FINANCIAL SYSTEM, MINIMIZING THE RISK OF LOST INSTITUTIONAL KNOWLEDGE. NEXT, THE FAIR LABOR STANDARDS ACT REQUIRES EMPLOYERS TO KEEP ACCURATE RECORDS, ON THE WAGES AND HOURS WORKED BY ITS EMPLOYEES. TO COMPLY WITH THIS ACT. THE CITY GENERALLY REQUIRES EMPLOYEES TO ENTER THEIR WORK HOURS IN THE CITY'S TIMEKEEPING SYSTEM. THESE HOURS ARE THEN REVIEWED BY EMPLOYEES, SUPERVISORS, OR THEIR DEPARTMENTS. TIMEKEEPER. TO ENSURE THAT EACH EMPLOYEE EMPLOYEES HOURS ARE ACCURATE, AND THE ORIGINAL AUDIT FOUND THAT ALMOST ALL EMPLOYEE TIME WAS ADEQUATELY APPROVED. IN ADDITION, CITY POLICY ALLOWS SUPERVISORS AND TIME KEEPERS TO ADJUST AN EMPLOYEE'S HOURS ONLY IF AN EMPLOYEE FORGETS TO CLOCK IN OR OUT, IF AN EMPLOYEE IS SICK, OR IF A TIME CLOCK MALFUNCTIONS. HOWEVER, IT WAS DIFFICULT TO VERIFY WHETHER A TIME CARD ADJUSTMENT COMPLIED WITH THIS POLICY DURING THE ORIGINAL AUDIT. SINCE THEN, PAYROLL IMPLEMENTED A NEW STANDARD OPERATING PROCEDURE OUTLINING EMPLOYEE TIME CARD CHANGE JUSTIFICATION REQUIREMENTS TO HELP ENSURE THAT THESE ADJUSTMENTS WERE APPROPRIATELY DOCUMENTED. BASED ON OUR REVIEW OF A JUDGMENT SAMPLE OF 30 EMPLOYEE TIME CARDS FROM JANUARY THROUGH JUNE OF 2024, MOST EITHER DID NOT REQUIRE EDITS OR EDITS WERE WERE APPROPRIATELY JUSTIFIED, AND THERE'S ONLY ONE EMPLOYEE THAT HAD MULTIPLE EDITS WHERE NO JUSTIFICATION WAS WAS AVAILABLE, AND STATING THAT THE SOP HAS IMPROVED PROCESS CLARITY AND JUSTIFICATION DOCUMENTATION.
LASTLY THE ORIGINAL AUDIT FOUND THAT EMPLOYEES WERE APPROPRIATELY AND ACCURATELY PAID BASED ON THEIR RECORDED WORK LEAVE HOURS AND PAY RATE, INCLUDING OVERTIME HOURS AND REQUIRED TAXES. IN ADDITION, AS PART OF THE ORIGINAL AUDIT, WE RECOMMENDED THE CITY CONSIDER CHANGING EMPLOYEE PAY RATES FROM THREE DECIMAL POINTS TO TWO TO REDUCE ROUNDING ISSUES. THIS CHANGE WAS STARTED WITH THE IMPLEMENTATION OF THE NEW COMPENSATION PLAN LAST YEAR, AND HR PLANS TO CONTINUE THIS SWITCH NEXT YEAR WITH A CIVIL SERVICE POSITIONS. IN ADDITION, THE ORIGINAL AUDIT FOUND THAT PAYROLL PAYMENTS WERE APPROPRIATELY REVIEWED AND AUTHORIZED BY FINANCE DEPARTMENT MANAGEMENT, AND THIS PROCESS HAS NOW BEEN FORMALIZED AND A STANDARD OPERATING PROCEDURE, WHICH REQUIRES SEPARATE PAYROLL EMPLOYEES TO GENERATE AND UPLOAD THE PAYROLL FILE TO THE BANK. WE ALSO FOUND THAT CITY STAFF GENERALLY HAD APPROPRIATE ACCESS TO THE CITY'S FINANCIAL AND TIMEKEEPING SYSTEMS TO ENSURE THAT THEY CAN PERFORM THEIR ASSIGNED FUNCTIONS. THAT BEING SAID, PAYROLL STAFF HAVE SUPERUSER ACCESS TO THE TIMEKEEPING SYSTEM, WHICH, WHILE NECESSARY, INCREASES THE RISK OF FRAUD OR ERROR AS THEY'RE ALLOWED TO MODIFY ALL EMPLOYEES WORK HOURS, WHICH ARE THE BASIS FOR PAYROLL PAYMENTS. IN RESPONSE TO THE RISK BEING IDENTIFIED IN THE ORIGINAL AUDIT, FINANCE MANAGEMENT NOW REVIEWS PAYROLL STAFF'S TIME CARD CHANGE LOGS EVERY TWO WEEKS AS PART OF THE REGULAR PAYROLL PROCESS. SO IN SUMMARY, WE FOUND THAT ALL FIVE OF THE ORIGINALLY ISSUED RECOMMENDATIONS ARE NOW IMPLEMENTED AND PLAN TO CONSIDER THIS, AUDIT FORMALLY COMPLETE. SO ARE THERE ANY QUESTIONS REGARDING THE FOLLOW UP REVIEW? THANK YOU. QUESTIONS FOR STAFF. ANY QUESTIONS IF YOU PULL THAT DOWN BRIEFLY PLEASE. AND THANK YOU. ALL RIGHT. SEEING NONE OKAY. TAKES US TO ITEM C ID
[C. Receive a report, hold a discussion, and give staff direction regarding Audit Project 032 - Fleet Services Operations: Fuel Management and Fuel Card Administration Follow-Up Review.]
2425. PARDON ME ID 24251. RECEIVE REPORT WHOLE DISCUSSION. GIVE STAFF DIRECTION REGARDING AUDIT PROJECT 032 FLEET SERVICES OPERATIONS, FUEL MANAGEMENT AND FUEL CARD ADMINISTRATION. FOLLOW UP. HELLO MAYOR AND COUNCIL. IS THAT SHOWING CORRECTLY? GREAT, AWESOME, LAST ONE FOR ME FOR TODAY, SO THIS IS A FOLLOW UP REVIEW AGAIN, WHICH IS INTENDED TO PROVIDE INFORMATION ON CHANGES THAT HAVE BEEN MADE IN RESPONSE TO AN ISSUED AUDIT. THIS REVIEW WAS BASED ON THE RECOMMENDATIONS AND MANAGEMENT RESPONSES ORIGINALLY COMPILED IN THE AUDITS OF FLEET SERVICES OPERATIONS, WHICH INCLUDED FUEL MANAGEMENT AND FUEL CARD ADMINISTRATION, AND WERE[00:30:02]
ORIGINALLY ISSUED IN APRIL AND JUNE OF 2023. THESE TWO REPORTS COVERED, THE EFFECTIVENESS OF CONTROLS OVER THE CITY'S BULK FUEL INVENTORY AND FUEL CREDIT CARD, PROCESSES, SO TO SAVE COSTS, THE CITY PURCHASES FUEL IN BULK FOR USAGE BY CITY VEHICLES. HOWEVER, SOME VEHICLES ARE ALLOWED TO REFUEL AT RETAIL GAS STATIONS USING A FUEL SPECIFIC CREDIT CARD. THIS REVIEW FOUND SOME IMPROVEMENT HAD BEEN MADE, BUT SOME PROGRAM CHANGES WERE STILL NEEDED. SO TO BEGIN, THE CITY HAS ESTABLISHED A CONTRACT FOR THE DELIVERY OF BULK FUEL TO EACH OF ITS TWO FUELING STATIONS AND FLEET SERVICES USES A FUEL MONITORING SYSTEM TO TRACK TANK LEVELS SO THEY KNOW WHEN TO PLACE ORDERS. SINCE THE ORIGINAL AUDIT FLEET HAS DEVELOPED SOME GUIDANCE ON HOW TO PLACE AND RETAIN ORDERING DOCUMENTATION. HOWEVER, THIS GUIDANCE IS MISSING INFORMATION ABOUT STANDARD ORDER SIZE, REDISTRIBUTION FEES, AND DOCUMENTATION RETENTION PRACTICES. DURING THE ORIGINAL AUDIT, WE FOUND THAT FUEL IS OFTEN OFTEN DELIVERED BY THE VENDOR WITHOUT STAFF OVERSIGHT, AND RECOMMENDED STAFF CHECK TANK LEVELS JUST BEFORE AND JUST AFTER DELIVERIES TO BETTER TRACK DELIVERED QUANTITIES. SINCE THEN, FLEET HAS NOT DEVELOPED A PROCESS TO OVERSEE FUEL DELIVERIES, ACCORDING TO STAFF. THIS IS BECAUSE DELIVERIES OFTEN OCCUR OUTSIDE OF NORMAL BUSINESS HOURS, STILL, FLEET HAS FORMALLY ESTABLISHED AN ACCEPTABLE VARIANCE RATE BETWEEN QUANTITY OF FUEL INVOICED AND QUANTITY ACTUALLY DELIVERED, FOR THE FUEL MONITORING SYSTEM AND HAS BEGUN REQUESTING NEW INVOICES WHEN THIS AMOUNT EXCEEDS TWO, TWO, AND A HALF PERCENT. LASTLY, DURING THE ORIGINAL AUDIT, WE FOUND THAT FLEET PERFORMS A MANUAL TANK LEVEL CHECK EVERY 30 DAYS BY PHYSICALLY DIPPING A MEASURING STICK INTO EACH TANK.HOWEVER, THIS MEASUREMENT WAS NOT BEING USED TO CALCULATE THE ACTUAL TANK LEVEL TO VERIFY THAT THE FUEL MONITORING MONITORING SYSTEM WAS ACCURATE, MOST LIQUID STORAGE TANKS COME WITH A TANK CHART, WHICH CAN BE USED TO EASILY CONVERT A LENGTH MEASUREMENT TO ESTIMATE TANK VOLUME, BUT FLEET DID NOT HAVE ACCESS TO THESE TANK CHARTS AT THE TIME. SINCE THEN, FLEET HAS CONTINUED MONTHLY TANK LEVEL DIPS AND RECENTLY RECEIVED ACCURATE TANK CHARTS TO BEGIN PERFORMING THIS VERIFICATION. NEXT, THE CITY USES A FUEL MANAGEMENT SYSTEM TO REGULATE AND RECORD, FUELING TRANSACTIONS AT THE CITY'S FUEL STATIONS. THE SYSTEM USES DUAL AUTHENTICATION BY REQUIRING AN AUTHORIZED ASSET ID AND AN AUTHORIZED EMPLOYEE ID TO BE ENTERED BEFORE FUEL IS DISPENSED, AS SHOWN IN THE SLID. DURING THE ORIGINAL AUDIT, WE FOUND THAT ACCESS TO THE SYSTEM WAS NOT WELL MANAGED, INCLUDING A LACK OF GUIDANCE AROUND GRANTING, EDITING, AND REMOVING USER ACCESS. IN ADDITION, ABOUT 9% OF USERS AT THAT TIME WERE NO LONGER CITY EMPLOYEES. SINCE THEN, WRITTEN GUIDANCE HAS BEEN DEVELOPED OUTLINING HOW TO ADD AND REMOVE EMPLOYEES TO THE BULK FUEL SYSTEM AND MINIMUM CRITERIA FOR ACCESSING BULK FUEL HAS GENERALLY BEEN ESTABLISHED.
HOWEVER, A REQUEST RETENTION PROCESS HAS NOT BEEN ESTABLISHED, LIMITING THE ABILITY TO VERIFY ACCESS CHANGE TIMELINESS. THAT BEING SAID, ACTUAL SYSTEM ACCESS HAS IMPROVED AS ONLY NINE OF THE ALMOST 900 USERS COULD NOT BE VERIFIED AS ACTIVE EMPLOYEES. AS SHOWN IN THE TABLE ON THE SLIDE NEXT, EACH MONTH, FLEET SERVICES BILLS DEPARTMENTS FOR THE BULK FUEL THAT THEY ACQUIRED THE PREVIOUS MONTH BASED ON THE ORIGINAL AUDIT FUEL TRANSACTION APPROPRIATENESS MONITOR APPROPRIATENESS MONITORING WAS HINDERED FOR BOTH FLEET AND THE USER DEPARTMENT, SPECIFICALLY FLEET IMPORTS FUEL TRANSACTION DATA INTO ITS ASSET MANAGEMENT SYSTEM DAILY. THE SYSTEM IS DESIGNED TO FLAG POTENTIALLY INAPPROPRIATE FUELING TRANSACTIONS BASED ON ODOMETER READINGS AND OTHER PIECES OF TRANSACTION DATA, AND REQUIRES EACH FLAG TO BE INDIVIDUALLY REVIEWED AND CLEARED BEFORE IT CAN BE BILLED. ON AVERAGE, ABOUT 1000 TRANSACTIONS A MONTH WERE FLAGGED BY THE SYSTEM IN LATE 2022. THIS SIGNIFICANT NUMBER OF TRANSACTION FLAGS HINDERS REVIEW AND APPEARS TO BE MOSTLY DUE TO EMPLOYEES MANUALLY ENTERING INCORRECT ODOMETER READINGS OR APPEARED TO BE INTO THE FUEL MANAGEMENT SYSTEM, AND SINCE THE ORIGINAL AUDIT ERRORS HAVE BEEN SIGNIFICANTLY REDUCED, SEEMINGLY DUE TO INFORMATION ON FUELING PROCEDURES BEING DISTRIBUTED AND WRITTEN, GUIDANCE FOR BILLING DEPARTMENTS HAS BEEN DEVELOPED.
IN ADDITION, EMPLOYEES WILL RECEIVE REGULAR TRAINING ON THIS PROCEDURE AS PART OF THE BI ANNUALLY REQUIRED DEFENSIVE DRIVING COURSE. IN ADDITION, FLEET HAS MADE ADEQUATELY DETAILED FUEL TRANSACTION INFORMATION AVAILABLE TO DEPARTMENTS, WHEREAS ONLY SUMMARY COST INFORMATION WAS PROVIDED PREVIOUSLY. FURTHER BULK FUEL STORAGE IS HIGHLY REGULATED BY STATE AND FEDERAL ENTITIES AND REQUIRES SPECIFIC SAFETY EQUIPMENT IN ORDER TO SAFEGUARD CITY ASSETS AND NATURAL RESOURCES DURING THE ORIGINAL AUDIT, WE FOUND THAT BOTH CITY FUEL STATIONS GENERALLY HAD APPROPRIATE SAFETY AND SECURITY EQUIPMENT, SUCH AS EMERGENCY SHUT OFF VALVES, SPILL KITS, AND FIRE EXTINGUISHERS. HOWEVER, 2021 INSPECTION REPORT FROM THE CITY'S FUEL STATION'S MAINTENANCE VENDOR STAFF STATED THAT SOME TANK WATER SENSORS NEEDED REPLACEMENT. THESE SENSORS WERE REPLACED IN JULY OF 2024. ON THE REGULATORY SIDE, FLEET IS ADEQUATELY COMPLETING AND DOCUMENTING TWO MONTHLY INSPECTIONS REQUIRED BY THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. THAT BEING SAID, OTHER REGULATIONS REQUIRE THE ENTITIES TO HAVE A SPILL PREVENTION, CONTROL AND COUNTERMEASURE PLAN AND TO TEST
[00:35:01]
A TANK'S CATHODIC PROTECTION SYSTEM EVERY THREE YEARS. BUT IT WAS NOT ORIGINALLY ABLE TO PROVIDE US WITH DOCUMENTATION OF THESE ITEMS. NEITHER FUEL STATION HAD SPECIFIC SAFETY INFORMATION POSTED THAT IS REQUIRED FOR UNATTENDED FUEL SITES. FOR THIS REASON, WE RECOMMENDED THAT FLEET DEVELOP WRITTEN GUIDANCE ON PERFORMING AND REPORTING THE NECESSARY REGULAR REGULATORY ACTIVITIES. HOWEVER, THIS GUIDANCE HAS NOT YET BEEN DEVELOPED.ADDITIONALLY, BASED ON AUDITS RESEARCH, THE CITY'S FUEL STATIONS MUST HAVE A RELEASE OR FUEL LEAK DETECTION METHOD IN PLACE. THE ORIGINAL AUDIT RECOMMENDED THAT FLEET VERIFY AND IMPLEMENT THE BEST METHOD. FLEET STATED THAT THEY VERIFIED WITH T-C-E-Q THAT THE CITY DOES NOT HAVE TO HAVE A RELEASE DETECTION METHOD. SINCE THEN, HOWEVER, AUDIT WAS UNABLE TO CONFIRM THAT THE CITY IS NOT SUBJECT TO THIS REQUIREMENT. AUDIT MAINTAINS THAT FLEET SHOULD BE RECONCILING TANK LEVELS TO SALE AND DELIVERY RECORDS EVERY TWO MONTHS TO DETECT POTENTIAL LEAKS USING THE INVENTORY CONTROL DETECTION METHOD OUTLINED BY STATE LAW.
FINALLY, THE ORIGINAL AUDIT FOUND THAT CONTROLS OVER FUEL CREDIT CARDS WERE LACKING.
SPECIFICALLY, THERE WERE FOUR GENERAL ISSUES ONE. THE SCOPE OH, WE'RE SORRY, WE'RE SLIDE BEHIND. ONE THE SCOPE OF THE FUEL CREDIT FUEL CARD PROGRAM HAD SIGNIFICANTLY EXPANDED SINCE IT WAS INITIALLY APPROVED BY COUNCIL, POTENTIALLY INCREASING COSTS AS RETAIL FUEL COSTS MORE PER GALLON, AND SOME FUEL CREDIT FUEL CARD PURCHASES SEEMED UNNECESSARY GIVEN THE CITY'S BULK FUEL PROGRAM. TWO FUEL CARDS WERE NOT ALWAYS STORED WITH THEIR ASSIGNED VEHICLE, RESULTING IN ABOUT A THIRD OF THE CITY'S 149 FUEL CARDS BEING MISSING. DURING THE INITIAL AUDIT, AND SOME CARDS WERE NOT ASSIGNED TO A SPECIFIC VEHICLE. THREE TECHNICAL LIMITATIONS TYPICALLY PLACED ON CARDS SUCH AS MAXIMUM GALLONS AND FUEL TYPE PROHIBITIONS, WERE NOT USED, GENERALLY DUE TO THE CARD SYSTEMS. THE CARD SYSTEM'S CAPABILITIES, BUT ALSO A LACK OF CENTRALIZED VEHICLE INFORMATION, AND THEN FOUR GENERAL LACK OF ACCOUNTABILITY FOR FUEL PROGRAM USERS, INCLUDING NO CARD USER AUTHORIZATION DOCUMENTATION, NO USER TRAINING, AND NO SUPERVISOR REVIEW OF TRANSACTIONS. THAT WAS ALL DURING THE ORIGINAL AUDIT. SINCE THEN, FLEET HAS WORKED WITH PROCUREMENT TO DEVELOP A FUEL CARD MANUAL THAT GENERALLY ADDRESSES THESE ISSUES. HOWEVER, THE MANUAL HAS NOT YET BEEN IMPLEMENTED. ACCORDING TO STAFF, THE MANUAL WILL BE ROLLED OUT ONCE A NEW FUEL CARD VENDOR IS SELECTED, AND WE HAVE BEGUN GOING THROUGH THE SOLICITATION PROCESS FOR THAT VENDOR. THE CITY IS IN THE PROCESS. OH, SORRY, AND THEN IN SUMMARY AND SO THAT'S THE END OF THAT ONE. IN SUMMARY, WE FOUND THAT SEVEN OF THE NINE ORIGINALLY ISSUED RECOMMENDATIONS ARE NOW IMPLEMENTED WITH 11 IN PROGRESS, AND THREE HAVE NOT BEEN IMPLEMENTED AS SHOWN ON THE SLIDE, BASED ON THIS INFORMATION, WE PLAN TO PERFORM A SECOND FOLLOW UP REVIEW IN THE NEXT 18 TO 36 MONTHS, FOCUSED ON THE 14 IN PROGRESS AND NOT IMPLEMENTED RECOMMENDATIONS. SO QUESTIONS ON THIS FOLLOW UP. THANK YOU VERY MUCH. QUESTIONS FOR STAFF ON ITEM C, REPRESENTATIVE FROM DISTRICT TWO AND IN DISTRICT FOUR. THANK YOU, YEAH, I REMEMBER WHEN THIS CAME UP THE PREVIOUS TIME AND, I WAS GLAD TO SEE IT COME BACK AROUND FOR THE FOLLOW UP. IT SEEMED LIKE UNLIKE MOST OF THE. WELL, OKAY, LET ME STATE THIS AS A AS A QUESTION. MY IMPRESSION WOULD IS FROM THIS REPORT THAT WE DON'T HAVE THE SORT OF, COMPLIANCE THAT WE TYPICALLY DO WITH OTHER DEPARTMENTS THAT ARE AUDITED IS THAT A FALSE IMPRESSION OR IS THAT AN ACCURATE IMPRESSION? I THINK THAT FOR THIS FOLLOW UP, YEAH, GENERALLY WE HAVE A LITTLE BIT MORE, IMPLEMENTED AT THIS POINT DURING THE FIRST FOLLOW UP REVIEW, I WILL I'LL POINT OUT THAT DUE TO THE RISKS IDENTIFIED IN THE ORIGINAL AUDIT, WE ALSO DID THE FOLLOW UP REVIEW OCCURRED FASTER THAN GENERAL THAN USUAL, SO THIS ONE WAS ABOUT 15 MONTHS AFTER THE INITIAL AUDITS. TYPICALLY WE'RE ABOUT TWO YEARS OUT, SO THAT COULD HAVE SOMETHING TO DO WITH IT, LIKE THEY HAVE A LOT OF THE RECOMMENDATIONS ARE IN PROGRESS BECAUSE OF THE, THE PROCUREMENT OF THE NEW VENDOR FOR THE FUEL CREDIT CARD PROGRAM, WHICH THEY'RE JUST STILL IN PROGRESS IN THAT. SO DOES THAT ANSWER YOUR QUESTION? SORT OF. IT GOES DIRECTLY TO WHERE I THOUGHT MY SECOND QUESTION WOULD, WOULD, WOULD TAKE ME. AND THAT IS DO WE HAD A LOT OF IN PROGRESS AS YOU JUST, ASSESSED AND DO DO WE FEEL THAT THE PROGRESS YOU'VE SEEN SO FAR IS GOING TO GET US TO, THE DESIRED GOALS, AS STATED IN THE PREVIOUS MEETING, THAT WE'RE NOT QUITE ATTAINING IF WE YOU KNOW, DOES IT LOOK LIKE WE'RE GOING TO GET GET TO THAT FAVORABLE END POINT OR WE'LL NEED ADDITIONAL TIME AND RESOURCES, I THINK WE WILL. BASED ON OUR REVIEW OF THE DRAFT, FUEL CARD, FUEL CREDIT CARD MANUAL, WE THINK THAT A LOT OF THE CONTROLS THAT NEED TO BE THERE ARE IN ARE IN THAT MANUAL. THEY JUST HAVEN'T BEEN IMPLEMENTED BECAUSE WE DON'T HAVE A NEW CARD SYSTEM YET, AND THEN ALSO GOING FORWARD, WE'VE DISCUSSED WITH THE DEPARTMENT, HEY, IF YOU'RE GOING TO IMPLEMENT SOMETHING OR WRITE A NEW POLICY, RUN IT BY US SO WE
[00:40:04]
CAN TELL YOU, LIKE, IS THIS HITTING THE MARK OR IS IT A LITTLE SHORT IN A COUPLE OF AREAS SO THAT HOPEFULLY WE CAN GET TO THAT 100% IMPLEMENTED STAGE, NEXT TIME? OKAY. SO IS IT YOUR DESIRE TO HAVE A SECOND FOLLOW UP ON THIS ONE? YES OKAY. ALL RIGHT, I APPRECIATE THAT.THANK YOU MADISON. THANK YOU. REPRESENTATIVE FROM DISTRICT FOUR. THANK YOU, OTHER THAN OTHER THAN A VEHICLE BEING OUT OF THE CITY, WHY WOULD WHY WOULD A VEHICLE PAY RETAIL FOR GAS? FOR FUEL. RIGHT, THE FUEL CREDIT CARD PROGRAM THAT YOU'RE TALKING ABOUT WAS INITIALLY APPROVED, MOSTLY FOR SAFETY VEHICLES. SO FOR, LIKE, FIRE TRUCKS AND FIRE ENGINES, BECAUSE THEY THERE WAS A, AN UNDERSTANDING THAT THEY, THEY WOULD HAVE TO LEAVE THEIR DISTRICT, WHICH COULD IMPACT RESPONSE TIMES TO GO TO THE CITY'S BULK FUELING STATIONS, BECAUSE WE HAVE FIRE STATIONS, THAT ARE NOT CLOSE ENOUGH TO, THAT ARE NOT, NEAR ENOUGH TO A BULK FUEL STATION THAT THERE WOULD STILL BE IN THEIR DISTRICT. DOES THAT HELP THAT THAT WAS THE INITIAL, I HEAR YOU THAT WAS WHY IT WAS APPROVED INITIALLY. IT HAS GREATLY EXPANDED PAST THAT, SO THERE ARE WHICH IS PART OF WAS PART OF OUR FINDING FROM THE INITIAL AUDIT. I SEE. YEAH. OKAY. OKAY. AND I'M ASSUMING THAT WHEN THE CITY BUYS FUEL, IT IS, IT IS PURCHASED TAX FREE. I BELIEVE SO OKAY. I'D HAVE TO GO BACK AND CHECK. OKAY SO WHEN YOU BUY FUEL AT THE EASY CHECK DOWN THE STREET, YOU CERTAINLY ARE. ONE IS CERTAINLY PAYING TAXES. HOW HOW DOES THAT HOW DOES THAT HOW DOES HOW DOES THE TAX GET REFUNDED OR REBATED OR WHATEVER IT DOES. I DON'T BELIEVE IT DOES REALLY I YEAH, I'D HAVE TO GO AND GO BACK AND CHECK THAT. BUT I DON'T THINK SO. NOW I FIND THAT INTERESTING BECAUSE IF THE CITY BUYS X THEY'RE TAX EXEMPT RIGHT? CORRECT. THAT'S I FIND THAT VERY INTERESTING. WOULD YOU LOOK INTO THAT THAT THAT DOESN'T SEEM THAT DOESN'T SEEM QUITE RIGHT. I'LL GET YOU AN ANSWER ON THAT. YEAH OKAY. OKAY. THANK YOU. THANK YOU. ANY OTHER QUESTIONS? SEEING NONE. THANK YOU VERY MUCH. THANK YOU. TAKES US TO ITEM D ID 24287. RECEIVE REPORT WHOLE
[D. Receive a report, hold a discussion, and give staff direction regarding the Denton’s Affordable Housing Bond priorities to develop and preserve affordable housing in Denton.]
DISCUSSION AND GIVE STAFF DIRECTION REGARDING DENTON'S AFFORDABLE HOUSING BOND PRIORITIES. OH, YOU KNOW WHAT I NEED TO SHARE, DON'T I? THERE WE GO. GOOD AFTERNOON. COUNCIL, THIS IS LEE ATKINSON, HOUSING PROGRAMS COORDINATOR WITH THE CITY OF DENTON. I'M HERE TODAY TO RECEIVE YOUR DIRECTION REGARDING STAFF'S PROPOSED STRATEGY ON THE AFFORDABLE HOUSING BOND. FIRST, WE'LL REVIEW A LITTLE BIT OF BACKGROUND. THEN WE WILL GO OVER AN OVERVIEW OF THE BOND PROPOSITION. NEXT PROPOSED TIMELINE AND ACTIVITIES, AND FINALLY INTO NEXT STEPS. SO AS YOU MAY REMEMBER, THE CITY OF DENTON DID, GO THROUGH AN AFFORDABLE HOUSING NEEDS ASSESSMENT AND MARKET VALUE ANALYSIS. THE FINDINGS WERE AS FOLLOWS THAT THERE WAS A NEED FOR RENTAL HOUSING FOR HOUSEHOLDS BELOW 80% OF THE AREA MEDIAN INCOME. THERE WAS A NEED FOR HOMES FOR SALE AT PRICES AFFORDABLE TO HOUSEHOLDS EARNING LESS THAN 80% OF THE AREA MEDIAN INCOME. I BELIEVE I MISSPOKE BEFORE RENTAL HOUSING WAS A NEED FOR HOUSEHOLDS UNDER 50% OF THE AREA MEDIAN INCOME. THERE'S A NEED FOR SUPPORT FOR SENIORS, INCLUDING RETROFITS AND HOME REPAIRS, AND THERE WAS A NEED FOR SUPPORTIVE HOUSING FOR RESIDENTS WHO MAY BE EXPERIENCING A DISABILITY OR EXITING HOMELESSNESS. AND LASTLY, THERE IS A NEED FOR HOUSING AFFORDABLE TO LOW INCOME HOUSEHOLDS IN AREAS OF OPPORTUNITY, MEANING TRANSPORTATION, HEALTHY FOOD OPTIONS, GREAT SCHOOLS AND GREAT JOBS. STAFF'S PROPOSAL TODAY IS ALIGNED WITH A FEW DIFFERENT PLANNING DOCUMENTS. FIRST AND FOREMOST, CITY COUNCIL'S PRIORITY TO FOSTER ECONOMIC OPPORTUNITY AND AFFORDABILITY. OF COURSE, ALSO THE AFFORDABLE HOUSING NEEDS ASSESSMENT AND MARKET VALUE ANALYSIS THAT WAS PREVIOUSLY MENTIONED, AS WELL AS THE STRATEGIC TOOLKIT FOR AFFORDABLE HOUSING, WHICH WAS APPROVED IN RESPONSE TO THOSE FINDINGS. WE'RE ALSO ALIGNED WITH THE DENTON 2040 PLAN, THE ECONOMIC DEVELOPMENT STRATEGIC PLAN, AS WELL AS THE SMALL AREA PLANS. THE SOUTHEAST DENTON AREA PLAN IDENTIFIED HOUSING AFFORDABILITY AS A CRUCIAL NEED AND THAT DOWNTOWN AREA PLAN, AS IT'S DEVELOPING, HAS ALSO IDENTIFIED HOUSING AFFORDABILITY[00:45:01]
AS A COMMUNITY PRIORITY. SO WHAT ARE DENTON STRATEGIES IN THIS TOOLKIT FOR DEVELOPING, DEVELOPING AFFORDABLY? THE FIRST IS INFILL DEVELOPMENT. THE NEXT IS ZONING RELIEF OFFERED IN EXCHANGE FOR AFFORDABILITY. THE THIRD IS CAPACITY EXPANSION. THE FOURTH IS PRESERVATION. BOTH OF OUR EXISTING HOMES, BUT ALSO OUR EXISTING HOUSING PROGRAMS. AND THE LAST IS INCREASING ACCESS TO INFORMATION SO THAT THE CITY, OUR PARTNERS AND MOST CRUCIALLY, OUR RESIDENTS CAN MAKE INFORMED CHOICES ABOUT HOUSING. THAT STRATEGIC TOOLKIT ESTIMATED APPROXIMATELY 4300 NEW UNITS AFFORDABLE TO HOUSEHOLDS WITH INCOMES BELOW THE MEDIAN WOULD NEED TO BE BUILT BY THE YEAR 2030. WE THEN, AS A CITY, SET A GOAL TO PRODUCE APPROXIMATELY 1300 OF THOSE UNITS USING THE STRATEGIES OUTLINED IN THAT STRATEGIC TOOLKIT. SOME OF THIS NEED HAS BEEN MET BY DEVELOPERS UTILIZING THE STATE FUNDED AND MANAGED HOUSING TAX CREDIT PROGRAM, BUT THE CITY CONTINUES TO NEED A NEW AND MORE TOOLS IN ITS TOOLBOX TO ENSURE THAT DENTON RESIDENTS HAVE ACCESS TO HOUSING, WHICH IS WHY ON NOVEMBER SEVENTH OF 2023, DENTON RESIDENTS VOTED IN FAVOR OF A BOND FOR AFFORDABLE HOUSING FOR THE AMOUNT OF 15 MILLION. THAT BOND WILL BE DISPERSED OVER THE COURSE OF THREE FISCAL YEARS IN THE AMOUNT OF 5 MILLION EACH YEAR, BEGINNING WITH FISCAL YEA, FISCAL YEAR 24. IN JUST A FEW MONTHS AND CONTINUING THROUGHOUT FISCAL YEAR 25 AND 26 FOR THAT TOTAL OF 15 MILLION. STAFF HAS BEEN REALLY DILIGENT IN ENSURING THAT THAT THOSE BOND MONIES ARE UTILIZED AS EFFECTIVELY AS POSSIBLE. WE'VE ANALYZED SIMILAR HOUSING PROGRAMS ADMINISTERED BY OTHER CITIES, ESPECIALLY THOSE PROGRAMS FUNDED BY GENERAL OBLIGATION BONDS SUCH AS THIS ONE. WE'VE ALSO WORKED WITH THE BOND COUNCIL TO PROVIDE THE BEST POSSIBLE PROPOSAL. WE'VE MET WITH OTHER CITY DEPARTMENTS TO REVIEW OUR HOUSING PLAN AND AREAS WHERE PROJECTS WILL OVERLAP AND WILL NEED TO COLLABORATE. WE'VE ALSO ATTENDED TRAININGS AND CONDUCTED FEEDBACK CONVERSATIONS WITH PROFESSIONAL ORGANIZATIONS SUCH AS THE TEXAS AFFILIATION OF AFFORDABLE HOUSING PROVIDERS AND THE TEXAS ASSOCIATION OF COMMUNITY DEVELOPMENT CORPORATIONS, WHO HOSTED THEIR CONFERENCE HERE IN DENTON AT THE EMBASSY. AND SOME OF OUR COUNCIL MEMBERS WERE IN ATTENDANCE. WE ALSO HAVE HAD THE PRIVILEGE TO MEET WITH STAFF FROM OTHER CITIES WHO ARE A LITTLE FURTHER DOWN THE LINE WITH THEIR HOUSING PLAN, AND HEARD LESSONS LEARNED, PLACES WHERE THINGS WENT REALLY WELL FOR THEM AND PLACES WHERE THEY WOULD DO THINGS DIFFERENTLY IF THEY WERE BACK IN OUR SHOES. AND LASTLY, WE'VE CONDUCTED EXPLORATORY CONVERSATIONS WITH LENDERS AND DEVELOPERS WHO HAD STATEWIDE EXPERIENCE IN AFFORDABLE HOUSING. WITH THAT IN MIND, STAFF'S PROPOSAL TO YOU TODAY IS DIFFERENT THAN IT WAS ORIGINALLY PROPOSED TO. THE BOND COUNCIL. SPECIFICALLY, WHAT WE HEARD A FEW DIFFERENT TIMES IS THAT CITIES AT THE BEGINNING OF THEIR HOUSING PLAN OFTEN INVESTED A LOT OF RESOURCES INTO LAND BANKING. THIS CREATED A LOT OF RISK FOR THE CITY. AS IT WAS, THEY WERE COMING IN AT THE BEGINNING OF A DEVELOPMENT AND IN A WORST CASE SCENARIO, IF THAT LAND ENDED UP NOT BEING THE BEST FIT FOR THE TYPE OF DEVELOPMENT THE CITY WANTED TO INCENTIVIZE, THEY WERE LEFT WITH UNUTILIZED LAND. WHAT WE HEARD A FEW DIFFERENT TIMES WAS THAT THE MOST EFFECTIVE PLACE FOR A CITY TO BE IS DIRECT PROJECT FINANCING, ESPECIALLY GAP FINANCING, WHERE THE CITY COMES IN AT THE END OF A PROJECT ALREADY IN MOTION TO ENSURE IT CAN CROSS THE FINISH LINE. WITH THIS IN MIND, WE ARE STILL PROPOSING SOME BOND FUNDS BE UTILIZED FOR PROPERTY ACQUISITION. SOME LAND PROGRAMS CAN DO AMAZING WORK IN THE WORLD OF LONG TERM, SUSTAINED AFFORDABILITY, BUT WE ARE PROPOSING A SHIFT IN THE FOCUS OF OUR RESOURCES. SO IN SUMMARY, STAFF IS PROPOSING 30% OF BOND FUNDS BE UTILIZED FOR PROPERTY ACQUISITION, 50% OF BOND FUNDS BE USED FOR DIRECT PROJECT FINANCING, 10% BE UTILIZED FOR CAPACITY EXPANSION, AND 10% BE USED FOR HOUSING ASSISTANCE PROJECTS. THIS IS A MORE DETAILED VERSION OF THAT PROPOSAL. AS YOU CAN SEE, 4.5 MILLION FOR PROPERTY ACQUISITION, 7.5 MILLION FOR DIRECT PROJECT FINANCING, 1.5 MILLION FOR CAPACITY EXPANSION. SPECIFICALLY, THIS WILL BE FINANCING TARGETED TO SMALL AND NONPROFIT DEVELOPERS LOCALLY, SO THAT THEY CAN PRODUCE MORE HOUSING. WE TALKED A FEW SLIDES BACK ABOUT INFILL BEING A CRUCIAL STRATEGY IN OUR TOOLKIT TO DEVELOP AFFORDABLY AND SMALL AND NONPROFIT DEVELOPERS PLAY A REALLY CRUCIAL ROLE IN THAT WORK. NEXT, 1.5 MILLION FOR HOUSING ASSISTANCE PROGRAMS DIVIDED OVER A FEW DIFFERENT PROGRAMS, THE FIRST BEING AN ACCESSORY DWELLING UNIT PROGRAM. THIS WOULD BE TO ATTAIN A CATALOG OF PRE-APPROVED DESIGN PLANS, TO TAKE A LITTLE BIT OF THAT TIME AND COST BURDEN OFF OF THE HOMEOWNER, AND THEN THE REMAINING FUNDS WOULD BE UTILIZED TO FINANCE ADUS. IN EXCHANGE FOR THAT, ADU BEING[00:50:05]
LEAST AFFORDABLY. THE NEXT ARE TWO DIFFERENT DOWN PAYMENT ASSISTANCE PROGRAMS. THEY FUNCTION VERY SIMILARLY. I WILL START WITH THE SECOND ONE. ACTUALLY, THIS IS JUST 400,000 TO GO DIRECTLY INTO THE EXISTING HOMEBUYER ASSISTANCE PROGRAM. THE CITY HAS BEEN RUNNING SUCCESSFULLY FOR QUITE SOME TIME, AND THEN THE VOUCHER HOLDER HOMEOWNERSHIP PROGRAM IS JUST THE SAME, EXCEPT IT'S A SPECIAL POT OF FUNDING, SPECIFICALLY RESERVED FOR HOUSING CHOICE VOUCHER HOLDERS TO TRANSITION INTO HOMEOWNERSHIP. THIS PROGRAM, LIKE EVERYTHING ELSE DESCRIBED HERE, IS IN OUR STRATEGIC TOOLKIT. AND IT'S SOMETHING WE'VE ALREADY BEGUN DISCUSSIONS WITH WITH THE HOUSING AUTHORITY. AND LASTLY, 300,000 FOR EVICTION PREVENTION. THIS WOULD SPECIFICALLY BE PROVIDED IN THE FORM OF SAME DAY LEGAL ASSISTANCE PROVIDED TO HOUSEHOLDS FACING EVICTION TO ENSURE THAT THEIR RIGHTS ARE OBSERVED AND TO PREVENT ILLEGAL EVICTIONS. OTHER CITIES WHO HAVE DONE SIMILAR PILOT PROGRAMS LIKE THIS HAVE SEEN SOME PRETTY GOOD SUCCESS IN TERMS OF STABILIZING FAMILIES. I WILL GO AHEAD AND RETURN TO THIS SLIDE LATER FOR MORE QUESTIONS. SO FOR NEXT STEPS, OF COURSE, WE'RE HERE IN FRONT OF YOU TODAY TO RECEIVE YOUR DIRECTION REGARDING THE BOND FUNDING STRATEGY.THROUGHOUT THE FALL, WE'LL BE RETURNING TO YOU BASED ON YOUR DIRECTION WITH AN INFORMAL STAFF REPORT TO PROVIDE A PROPOSED PATH AND TIMELINE TO BRING THESE PROGRAMS ONLINE. WE'LL ALSO BE RETURNING WITH THE 380 AGREEMENT FOR ADOPTION AS WELL AS SPECIFIC PROGRAMS FOR INDIVIDUAL CONSIDERATION. SO EACH OF THESE PROGRAMS, YOU'LL BE ABLE TO LOOK AT INDIVIDUALLY ON THEIR OWN, AND WEIGH IN AS THOSE PROGRAMS DO COME ONLINE. WE'LL BE REPORTING PROGRAM METRICS, INCLUDING THE NUMBER OF HOUSING UNITS PRODUCED IN IN VISIO, WHICH OF COURSE IS AVAILABLE TO THE PUBLIC AND PROVIDED TO YOU QUARTERLY. IN SUMMARY, STAFF IS SEEKING DIRECTION ON THE FOLLOWING. THE PROPOSED ACTIVITIES UNDER THE AFFORDABLE HOUSING BOND, AS WELL AS THE PERCENTAGE OF BOND FUNDS ALLOCATED TO THOSE ACTIVITIES. THAT'S EVERYTHING I HAVE. I WANT TO THANK YOU FOR YOUR TIME AND YOUR CONSIDERATION. I'M GOING TO PUT IT BACK ON THAT SLIDE FROM BEFORE. OH YES, I DO NEED TO BRING IT DOWN. YOU'RE RIGHT. FORGIVE ME. ALL RIGHT, ALL RIGHT. THANK YOU. PARDON ME. QUESTIONS FOR QUESTIONS FOR STAFF REPRESENTATIVE, DISTRICT FOUR, BACK TO SLIDE TEN. THE EVICTION PREVENTION. DO I UNDERSTAND THAT THAT'S ONLY TO PAY LEGAL COSTS FOR COUNSELING FOR, WHAT? REVIEWING. REVIEWING A SITUATION THAT'S BEING EVICTED. IT'S NOT PROVIDING. IT'S NOT PROVIDING RENT. THAT'S CORRECT. OKAY, OKAY.
REPRESENTATIVE DISTRICT THREE. IS REALLY ENCOURAGINGLY THOUGHTFUL AND REFLECTS ALL THE, YOU KNOW, THE HOMEWORK, THAT YOU'VE DONE. A COUPLE QUESTIONS OCCUR TO ME. ONE IS THERE WAS AN EARLIER SLIDE WHERE YOU WHERE YOU LIST OUT WHAT THE IDENTIFIED NEEDS WERE. AND I'M WONDERING IF YOU CAN HELP TICK AND TIE THAT TO SLIDE TEN. LIKE IS THE INTENTION THAT THAT YOU KNOW EVERYTHING IS IT MEANT SLIDE TEN MEANT TO ADDRESS EVERYTHING IN THAT LIST OR OR NOT. AND IF SO, YOU KNOW, WHAT ARE THE DIFFERENCES THAT THAT'S ONE OTHER QUESTION. AFTER THAT. YEAH I THINK I CAN ADDRESS THAT A LITTLE BIT, SO IT IS MEANT TO ADDRESS THOSE NEEDS. ALL OF THESE ARE TO PRODUCE MORE HOUSING THAT IS AFFORDABLE TO MEET THOSE NEEDS FOR RENTAL HOUSING, THESE PROGRAMS COULD BE USED TO CONSTRUCT SUPPORTIVE HOUSING AND HOMEOWNERSHIP.
HOMES, AND SO FORTH. THIS IS NOT THE ONLY THING IN THE TOOLKIT, NOT EVERYTHING DESCRIBED IN THE TOOLKIT IS FUNDED, OR NEEDS FUNDING. RIGHT. SO WE'RE ALSO WORKING WITH THE PLANNING DEPARTMENT RIGHT NOW ON A FIRST OF AN AMENDMENT TO DO ZONING RELATED INCENTIVES. SO THIS IS NOT THE ENTIRETY OF THE TOOLKIT, BUT IT IS A GOOD BIT OF IT. AND THIS IS DESIGNED TO MEET THOSE NEEDS. WOULD YOU SAY THAT THE, THE EVICTION PREVENTION PIECE IS THE ONE THAT WOULD ADDRESS POTENTIAL, HOMELESSNESS OR ARE THERE OTHER THINGS THAT KIND OF GO WITH THAT? YEAH, THE EVICTION PREVENTION IS AN ACTIVITY OUTLINED IN OUR TOOLKIT. AND LEGAL ASSISTANCE IS A COST EFFECTIVE WAY TO PRACTICE THAT, AND IT IS A DUAL WORK IN STABILIZING FAMILIES AND ALSO IN PREVENTING HOMELESSNESS. YES. AND, MAYOR, IF I MAY. YEAH. THERE THERE ARE SPECIFIC IDENTIFIED QUANTITATIVE, YOU KNOW, QUANTIFIED GAPS IN UNITS AND, YOU KNOW, HOMES FOR PURCHASE AND HOMES TO RENT, DO YOU HAVE A POINT OF VIEW ON WHAT THE PLAUSIBLE RANGE OF UNIT GENERATION, IS THAT THIS PLAN WOULD WOULD PRODUCE? AND HOW DOES THAT MATCH TO THE GAP? OUR
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INTENTION IS FOR THIS TO MEET THOSE GOALS. AND IN FACT, WE'RE HOPEFUL THAT IT WILL EXCEED THEM IN CERTAIN WAYS BECAUSE WE HAVE BOND FUNDING NOW. HOWEVER, I WOULD I WOULD NEED TO GET BACK TO YOU WITH A SPECIFIC ESTIMATE FOR EACH PROGRAM. IT WOULD BE DIFFICULT TO SAY RIGHT NOW. IT MIGHT BE USEFUL, YOU KNOW, JUST TO I MEAN, FOR NOT JUST FOR ME, YOU KNOW, FOR EVERYONE. THANKS.YEAH. ANYONE ELSE? REPRESENTATIVE FROM DISTRICT SIX, THEN? ONE. THANK YOU. HI.
COUNCIL PERSON. JESTER, THANK YOU VERY MUCH FOR THIS PRESENTATION. GREAT JOB, I WANTED TO KNOW WITH THE, LAND PROPERTY ACQUISITION IS THE THOUGHT BEHIND THIS THAT WE, AS YOU SAID, BANK PROPERTIES TO THEN SELL TO THE APPROPRIATE POTENTIAL OWNER WHO PLANS TO DEVELOP IT IN THE WAY, THAT WOULD HELP OUR GOALS. WE'RE NOT GETTING INTO THE BUSINESS OF DEVELOPING PROPERTIES OURSELVES, CORRECT? NO, WE WILL NOT BE DOING THAT, I THERE ARE TWO.
I'LL TRY NOT TO GET TOO FAR INTO THE WEEDS, BUT THERE ARE TWO KIND OF, COMMON AND SUCCESSFUL, LINES OF PROPERTY ACQUISITION AND DIFFERENT PROPERTY ACQUISITION PROGRAMS THAT CITIES DO WITH THESE HOUSING PROGRAMS, BOTH WHICH OF WHICH ARE DESCRIBED IN OUR TOOLKIT. SO ONE WOULD BE LAND BANKING, LIKE YOU DESCRIBE WHERE WE PURCHASE LAND, NOW WHEN IT'S LIKELY MORE AFFORDABLE THAN IT WILL BE IN THE FUTURE. AND THEN, PROVIDE THAT TO A DEVELOPER TO DO THEIR WORK, ANOTHER WOULD BE A COMMUNITY LAND TRUST, WHICH IS A FORM OF MITIGATING PROPERTY TAXES. AND PRESERVING HOMES FOR LONG TERM AFFORDABLE OWNERSHIP. OKAY, I'VE GOT A FOLLOW UP COMMENT, A FOLLOW UP QUESTION, FOLLOW UP COMMENT. I ALSO WANTED TO SAY THANK YOU SO MUCH FOR ALL OF THE COMPARABLES THAT YOU WENT AND GOT. THE FACT THAT YOU SPOKE TO OTHER GROUPS THAT HAVE BEEN THROUGH THIS THAT CAN LOOK BACK AND TELL YOU WHAT THEY WOULD HAVE DONE DIFFERENTLY IN OUR SHOES? I THINK THAT'S JUST IMMEASURABLE HELP. THE ACTUAL PRACTICAL, IMPLEMENTATION OF TO TRY TO GET TO OUR GOALS, WITH THE EVICTION PREVENTION, IS THERE SOME KIND OF, CRITERIA OR FORMULA THAT SAYS THIS IS WHO, TAXPAYER MONEYS ARE GOING TO GO TO DEFEND IN COURT? HOW DO WE WHO WOULD BE SUPERVISING THIS TO MAKE SURE IT'S NOT JUST TO, PROLONG AS OPPOSED TO TRYING TO FIX A PROBLEM? YEAH. WHO SELECTS THE USERS ON THAT? AND WHO'S WHO WOULD BE OVER THAT? ABSOLUTELY.
THAT'S SOMETHING THAT WOULD GO TO A NONPROFIT, WHO WOULD MANAGE THAT PROGRAM AND RUN THAT PROGRAM, LIKELY ONE WHO HAD EXPERIENCE DOING THIS, OF COURSE. AND SO WE WOULD SET THOSE METRICS THAT WE SAY, YOU NEED TO REPORT BACK TO US. THESE THINGS, IT WOULD LIKELY BE THINGS AROUND INCOME AND THEN TRACKING HOW THAT WENT. DOES THAT ANSWER IT AGAIN? SORRY SO THIS WOULD GO TO A NONPROFIT AND WE WOULD SET THE METRICS FOR THEM SAYING THIS IS THE INFORMATION WE WOULD NEED YOU TO COLLECT. SO THAT WE CAN REPORT BACK TO THE PUBLIC AND BE ACCOUNTABLE. OKAY. THANK YOU VERY MUCH. I APPRECIATE IT. REPRESENTATIVE DISTRICT ONE, THANK YOU FOR YOUR WORK, MY QUESTION IS I SAW THE NUMBER OF UNITS THAT WERE EXPECTED THAT THE EXPECTATION OF THESE UNITS BY A CERTAIN YEAR. IT WAS THE GOAL. YES, THAT'S THE GOAL, AND THEN I'M TRYING TO CONNECT THE UNITS. MEANING ARE THESE MULTI-FAMILY? ARE THESE JUST SINGLE FAMILY HOMES, TOWNHOMES, DUPLEXES, BREAK DOWN. WHAT? WHAT WE SHOULD BE THINKING IN TERMS OF UNITS. ALL OF THE ABOVE, AND IN FACT, WHEN YOU SEE THAT BREAKDOWN OF THESE MANY FOR RENTAL, THESE MANY FOR, HOME OWNERSHIP, OF COURSE, IT WOULDN'T NECESSARILY HAVE TO BE THOSE CAN BE A VARIETY, BUT YOU WOULD LIKELY KIND OF SEE SIMILAR NUMBERS THERE IN TERMS OF SINGLE FAMILY HOMES, OR TOWNHOMES VERSUS, MULTI-FAMILY DEVELOPMENTS, WHICH ARE OFTEN RENTAL. ARE WE, ARE WE THE CITY OF DENTON, A, A TOWN THAT WOULD CONSIDER ITSELF, I'M TRYING TO THINK OF, AFFORDABLE HOUSING COMMUNITY. ARE WE MORE AFFORDABLE HOUSING COMMUNITY PEOPLE, OR ARE WE, DELVING INTO PREMIUM HOMES? HOW WAS THAT BREAKDOWN LOOKING LIKE RIGHT NOW? IF SOMEONE WERE TO LOOK AT DENTON AND SAY, I WANT TO MOVE TO DENTON AND THEY ARE HIGH INCOME PEOPLE, ARE THEY GOING TO BE DISAPPOINTED OR ARE THEY OR IS THE COMMUNITY OUT THERE LOOKING AT US AND SAYING, OKAY, THAT'S A PLACE THAT I CAN LIVE BECAUSE THEY ARE MORE AFFORDABLE
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HOME TYPE PEOPLE? YEAH, I THINK THAT'S A PRETTY THAT'S A TOUGH QUESTION. IT'S A BIG ONE, AND IT'S SOMETHING WE CAN COME BACK TO WITH MORE INFORMATION IF YOU LIKE. BUT I WILL SAY IN COMPARISON, THIS, THE COUNTRY OVERALL IS EXPERIENCING A NEED FOR AFFORDABLE HOUSING, DENTON IS MORE AFFORDABLE THAN LOTS OF COASTAL CITIES THAN OTHER LARGE CITIES IN TEXAS THAT ARE EXPERIENCING THESE ISSUES, BUT OF COURSE, WE STILL HAVE A NEED, JUST AS MOST CITIES IN THE COUNTRY DO. I HOPE THAT ANSWERS THAT. YOU KNOW, THAT WAS A REALLY GOOD ANSWER. THANK YOU. I APPRECIATE YOU BEING GENERALIZED IN THAT ANSWER BECAUSE, YOU KNOW, THAT IS A CONCERN HERE. I THINK THAT WHENEVER WE'RE TRYING TO ATTRACT NEW BUSINESSES AND, YOU KNOW, IF WE HAVE EXECUTIVE, COMMUNITIES OUT THERE AND THEN WE HAVE OUR AFFORDABLE HOME COMMUNITIES. SO I'M JUST TRYING TO, YOU KNOW, DISCERN WHETHER OR NOT, IF I, YOU KNOW, WERE TO SPEAK FOR ECONOMIC DEVELOPMENT SAKE, YOU KNOW, WHAT AM I GOING TO BE SPEAKING TO? SO I THINK THAT AT SOME POINT WE'LL HAVE TO COME TO THOSE TERMS AND WE ARE DOING A GREAT JOB IN AFFORDABLE LOOK AT ALL THESE APARTMENTS COMING UP. I MEAN, THEY'RE EVERYWHERE, AND BUT, YOU KNOW, THAT'S THAT'S WHAT WE, WE JUST NEED TO SAY, WELL, THIS IS WHO WE ARE, AND THEN HAVE OUR SURROUNDING COMMUNITIES AND OUR, OUR NEW INCOMING PEOPLE THAT ARE COMING IN THAT THEY CAN UNDERSTAND WHERE WE ARE. THANK YOU. THE LAST THING THAT I'D SAY TO THAT, IF I, IF I MAY, IS THAT SOMETHING A GOAL OF OUR TOOLKIT IS TO WITH EACH OF THESE, THINGS THAT WE DO ANALYZE TO MAKE SURE THAT WE'RE NOT CONCENTRATING POVERTY IN THE SAME AREA, AND ONE THING THAT THESE PROGRAMS WILL BE ENCOURAGING IS WHAT IS CALLED MIXED INCOME DEVELOPMENTS. SO IF IT'S A NEIGHBORHOOD OR IF IT'S AN APARTMENT COMPLEX THAT THEY ARE NOT NECESSARILY ALL HELD FOR LOW INCOME HOUSEHOLDS, BUT IT'S A MIX. SOME ARE FOR LOW INCOME HOUSEHOLDS, SOME ARE MARKET RATE, AND ANYONE CAN RENT THEM.AND SO THOSE ARE THINGS THAT GO A LONG WAY TOWARDS ENSURING THAT WE HAVE AN ECONOMICALLY DIVERSE CITY. THANK YOU. OKAY. ANYONE ELSE? REPRESENTATIVE FROM DISTRICT FIVE AND THEN TWO, YOU MENTIONED THAT IN DOING THIS, YOU GOT AN OPPORTUNITY TO SPEAK WITH YOUR COLLEAGUES FROM OTHER CITIES, TALKING ABOUT LESSONS LEARNED FROM OTHER CITIES THAT PERHAPS ARE FURTHER DOWN THE PATHWAY OF AFFORDABLE HOUSING AND THEN CAN YOU MAYBE LIST 1 OR 2 EXAMPLES OF NOT NECESSARILY WHO'S DOING IT, BUT THINGS THAT OTHER CITIES HAVE DONE THAT WE ARE THAT ARE ON THE HORIZON FOR US TO TRY TO ACHIEVE THIS GOAL? ABSOLUTELY. AND I'LL, I'LL TRY TO KEEP IT HIGH LEVEL AND, BUT, WE'VE DEFINITELY SPOKEN PRETTY EXTENSIVELY WITH THE CITY OF AUSTIN AND THEIR TEAM. WE'VE SPOKEN WITH DALLAS AND FORT WORTH AND HOUSTON, AS WELL AS SOME NEIGHBORS IN PLANO. IF I REMEMBER CORRECTLY, AND THEN, OF COURSE, WE'VE DONE RESEARCH MORE ACROSS THE COUNTRY, MORE BROADLY, INTO OTHER GENERAL OBLIGATION AFFORDABLE HOUSING BONDS. DOES THAT ANSWER YOUR QUESTION, OR DID YOU WANT TO HEAR MORE PROGRAMMATICALLY? PROGRAMMATICALLY? OKAY, YEAH. SO SPECIFICALLY, ACCESSORY DWELLING UNIT PROGRAMS. ARE A BIG THING IN AUSTIN, IF I REMEMBER CORRECTLY. AND ALSO A LOT ON THE EAST COAST, THEY'VE SEEN A LOT OF SUCCESS. AND WE SAW SOME OF THAT, I BELIEVE, DOWN SOUTH IN GALVESTON, SOME OF THE REALLOCATION IS REPRESENTATIVE OF SOME OF THE LESSONS LEARNED FROM OTHER CITIES. YES. CORRECT. THAT WOULD BE CORRECT. YES. IN TALKING ABOUT LAND BANKING, I KNOW THAT'S BEEN A BIG STRATEGY. DO WE ALSO EVALUATE THE LAND THAT THE CITY ALREADY OWNS FOR, FOR, POTENTIAL AFFORDABLE HOUSING COMING TO THE CITY TO A CERTAIN EXTENT, THAT HASN'T BEEN OUR PRIMARY FOCUS, BUT IT'S SOMETHING THAT WE THINK ABOUT AND WE TALK ABOUT, AND WE CERTAINLY CAN LOOK MORE INTO. SAY MORE ABOUT THAT A LITTLE BI.
I'M A LITTLE CONFUSED. OKAY. DANNY WOULD LIKE TO SPEAK. ALL RIGHT. DANNY SHAW, DIRECTOR OF COMMUNITY SERVICES. SO WHAT WE DID ONE OF OUR FIRST STRATEGIES IN THE AFFORDABLE HOUSING STRATEGIC TOOLKIT WAS TO GIS MAP. AND SO WE DID GIS MAP, VACANT PROPERTIES AND WE DID ANALYZE THEIR SUITABILITY FOR DEVELOPMENT. AND WE'RE LOOKING AT NOW DRILLING THAT DOWN TO MORE SPECIFIC PROPERTIES. BUT ONE OF THE ASSESSMENTS WAS IS IT EVEN PROPERTY THAT IS DEVELOPABLE. DOES THE CITY HAVE THE ABILITY TO USE THAT LAND FOR DEVELOPMENT? SO OFTENTIMES LAND IS PURCHASED WITH BOND FUNDS OR FOR OTHER PURPOSES LIKE DME AND THINGS LIKE THAT. SO WE ACTUALLY HAVEN'T IDENTIFIED A LOT OF CITY PROPERTIES THAT FIT THAT MOLD COMPARED TO JUST GENERALLY VACANT PROPERTIES. DOES THAT HELP ANSWER THAT? YES. OKAY. THANK YOU. THANK YOU DANNY. AND LAST QUESTION, IF I, IF I MIGHT THE VOUCHER THE VOUCHER HOLDER OWNERSHIP PROGRAM HAS IT IS THIS PROGRAM ALREADY SOMETHING THAT'S WORKING OR IS THIS A NEW PROGRA? THIS WOULD BE A NEW PROGRAM, THE HOUSING AUTHORITY HAS A PROGRAM WHERE THAT VOUCHER CAN GO TOWARDS A MORTGAGE PAYMENT. THIS WOULD BE DOWN PAYMENT ASSISTANCE TO COMPLEMENT THAT, AS CURRENTLY AS YOU MAY IMAGINE, THAT'S A DIFFICULT TRANSITION TO MAKE FINANCIALLY, SO THIS ASSISTS WITH THAT, DOES THAT ANSWER YOUR
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QUESTION? DO WE EXPECT THERE TO BE A LOT OF A LOT OF USE FOR THESE FUNDS? A HIGH LEVEL OF NEED FOR THESE FUNDS, ONCE WE GET IT STARTED NEXT YEAR? YES, I WOULD SAY WE DO EXPECT IT. IT WILL BE DIFFICULT FINDING HOUSEHOLDS FOR WHOM IT'S A RIGHT FIT AND A GREAT SUCCESS, BUT WE DO KNOW THAT THE HOUSING AUTHORITY HAS TOLD US THEY HAVE A LOT OF VOUCHER HOLDERS WHO ARE INTERESTED IN HOMEOWNERSHIP AND ATTEMPTING TO MAKE THAT JUMP. AND SO IT'S JUST A MATTER OF MAKING SURE THAT WE CAN HAVE A PROGRAM ACCESSIBLE. I APPRECIATE THAT WHEN YOU SAID IT'S DIFFICULT TO FIND A LOT OF HOUSEHOLDS THAT WOULD BE RIGHT FOR THIS, I WOULD HAVE THOUGHT THERE WOULD BE MORE DIFFICULT TO FIND THE PROPERTY. THAT'S ACTUALLY A BETTER WAY OF SAYING THAT. YES. THANK YOU. OKAY. YEAH. THANK YOU VERY MUCH FOR YOUR PRESENTATION.REPRESENTATIVE DISTRICT TWO. THANK YOU, I THINK YOU CAN TELL FROM A LOT OF THE QUESTIONS THAT, THAT PEOPLE ARE TRYING TO, TO DRILL INTO THE, THE SORT OF EFFECTIVENESS OF THE DIFFERENT APPROACHES AND, AND PARTLY THAT'S, THAT'S MERITED BECAUSE ONE OF THE QUESTIONS Y'ALL ASKED FOR DIRECTION FROM IS, ARE, ARE THESE THE RIGHT RATIOS OF THIS PROGRAM TO THAT PROGRAM, TO THIS PROGRAM? AND SO ONE, I WANT TO PIGGYBACK ON A NUMBER OF DIFFERENT COUNCILORS QUESTIONS, IN THAT REGARD, SO SOME OF THE THINGS LIKE, WE MENTIONED VARIOUS, YOU KNOW, CODE CHANGES, BUT IF WE KNOW THE, THE EFFECTIVE HOUSING STRUCTURE OR HAVE AN ESTIMATE OF THOSE, THOSE ARE, YOU KNOW, FREE TO US MINUS A SMALL OVERHEAD TO ACTUALLY DEVELOP THEM. BUT, YOU KNOW, IF THAT'S THE BIGGEST BANG FOR OUR BUCK, THEN WE SHOULD WORK ON THAT. IF, SORT OF, THE SORT OF HOUSING ASSISTANCE, QUADRANGLE OF OPTIONS. ARE, ARE A LARGE RETURN ON INVESTMENT, THEN, YOU KNOW, THAT'S WE SHOULD WE SHOULD SET OUR SIGHTS ON THOSE AND MAYBE REDUCE SOME OF THE OTHERS.
SO SINCE YOU, YOU'VE CAST US TO HELP YOU, PROVIDE, YOU KNOW, ASSESS WHETHER THE RATIOS OF, OF, 4.5 MILLION, 7.5 MILLION, 1.5 MILLION, ARE THE RIGHT NUMBERS, I'D REALLY LIKE TO SEE IF IT'S AVAILABLE, YOU KNOW, WHERE DID WE COME UP WITH $200,000 A YEAR? $400,000 A YEAR FOR SOME OF THESE CATEGORIES, IF THAT IF THAT KIND OF ASSESSMENT OF, LIKE, WHY WERE THOSE SET THOSE AND NOT, YOU KNOW, I'M JUST GOING TO MAKE AN ARBITRARY THING. WHY NOT DOUBLE THOSE, YOU KNOW, IF, IF IS, YOU KNOW, OR WHY, YOU KNOW, I NOTICED LIKE ON ACCESSORY DWELLING UNITS, YOU WERE TELLING ONE OF THE COUNSELORS THAT THEY WERE A PARTICULAR EFFECTIVE, METRIC, BUT WE STOPPED THOSE IN AFTER YEAR ONE. SO IF THAT'S A PARTICULARLY EFFECTIVE, PROGRAM, WE OR WE, WE BELIEVE IT WOULD BE, YOU KNOW, WHY ARE WE STOPPING IT? YOU KNOW, I IT LOOKS LIKE. OKAY, SO IT'S I CAN HAVE $400,000 FOR VOUCHERS AND HOME OWNERSHIP, DOWN PAYMENT PROGRAMS GOING FORWARD. SO I REALLY AM KIND OF TRYING TO STAGE THOSE VARIOUS THINGS, BUT I WOULD LOVE TO HEAR SOME SOME IF YOU HAVE IT NOW. AND IF YOU DON'T HAVE IT NOW, YOU KNOW, GET SOME FUTURE BACKUP, FOR WHY WHY THE VARIOUS RATIOS IN THESE PRELIMINARY ESTIMATES WERE CHOSEN AND ENCOURAGE YOU STRONGLY TO FOR THE ESPECIALLY EVEN ESPECIALLY FOR THE THINGS THAT DON'T HAVE ANY COSTS LIKE CODE AND INVESTMENTS, GIVE US SOME ESTIMATES ON THEIR EFFECTIVENESS THE WAY SEVERAL OF THE COUNSELORS, WERE ASKING ABOUT. OKAY, UNDERSTOOD. AND I CAN DO A QUICK OVERVIEW OF SOME OF THE LOGIC. AND THEN OF COURSE, WE CAN ALWAYS RETURN WITH A MORE THOROUGH INVESTIGATION. THERE ARE SUMMARY THERE, WITH ADU SPECIFICALLY, THAT WOULD NECESSARILY ALL BE SPENT IN THAT FIRST YEAR. THAT'S TO SET UP A NEW PROGRAM. AND PART OF IT'S WHY IT'S A LARGE PORTION OF THAT WILL BE USED TO ATTAIN THOSE PRE-APPROVED DESIGN PLANS, WHICH WOULD BE A ONE TIME PURCHASE. AND SO THAT'S SOME OF THAT. WHY THAT'S AT THE START.
SOME OF THAT, I SUPPOSE, DISSYMMETRY YOU SEE, THERE IS TO ENSURE THAT THERE'S 5 MILLION ACROSS EACH YEAR. SO THAT IT'S EVEN THERE, SO THAT EXPLAINS THAT ADU A LITTLE BIT. BUT OVERALL, WITH EACH OF THESE COSTS, WE WERE REALLY LOOKING AT WHAT DO WE NEED TO DO THIS EFFECTIVELY, SO THAT'S PART OF ONE OF THOSE THOSE CHANGES WITH DIRECT PROJECT FINANCING. AT FIRST WE WERE REALLY JUST LOOKING AT PRE-DEVELOPMENT COSTS, FOR WHICH 750,000 IS A MUCH MORE REASONABLE NUMBER. BUT WHEN WE START LOOKING AT GAP FINANCING, THE NUMBERS THAT WE HEAR FROM DEVELOPERS ARE 2 TO 3 MILLION. OFTEN, AT LEAST FOR LARGE DEVELOPMENTS. AND SO WE WANTED TO ENSURE THAT WE WERE ABLE TO CREATE A PROGRAM THAT WOULD HAVE AN IMPACT, AND WHERE WE COULD ASK FOR WHAT THE CITY REALLY NEEDED, IN RETURN FOR THAT, THOSE FUNDS, AND HAVE THAT
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SEAT AT THE TABLE, AND SO THAT'S WHERE ALL OF THOSE NUMBERS CAME FROM, WAS WE LOOKED AT WHAT WOULD IT COST TO RUN THIS EFFICIENTLY, EFFECTIVELY, REALISTICALLY, AND WE SET THE NUMBERS FROM THERE. OH, THAT SOUNDS GREAT. AND I WOULD JUST LOVE TO IF THAT, IF THAT SORT OF REPORTING NUANCE IS AVAILABLE, I'D LOVE TO HAVE THAT. SEE THAT IN SOME SORT OF REPORT TO COUNCIL, YOU KNOW, THAT WAY WE CAN SAY, YEAH, NO, WE COMPLETELY AGREE. YOU KNOW, WE THINK THOSE RATIOS ARE ARE AWESOME. PLEASE DO THAT. OR, YOU KNOW, MAYBE, YOU KNOW, WE WANT TO TWEAK SOME THINGS WHERE LIKE WE LIKE THE DISTRIBUTION OF PROGRAMS AS YOU'VE WRITTEN AND WE LIKE, YOU KNOW, YOUR FOCUS ON ON GAP FINANCING. BUT, YOU KNOW, MAYBE WE'D LIKE TO SEE, YOU KNOW, I, YOU KNOW, SOME THINGS THAT PEOPLE WERE, YOU KNOW, MENTIONING OVER AND OVER AGAIN WERE, YOU KNOW, EVICTION PROGRAM. I DON'T KNOW IF THERE'S INTERESTED IN HAVING THAT, YOU KNOW, YOU KNOW, INCREASE, DECREASE. BUT IT WOULD THE, THE SEEING THE RATIONALE FOR WHY THOSE NUMBERS WERE CHOSEN WOULD BE REALLY HELPFUL, IN A FUTURE REPORT, THAT'S SOMETHING STAFF CAN WORK ON AND PROVIDE. THANK YOU. OKAY, SO I WOULD JUST NEED AND HELP ME UNDERSTAND THE PROCESS. I'M GENERALLY OKAY WITH EVERYTHING YOU'VE LAID OUT. I DO WANT TO ZERO IN ON THE ILLEGAL EVICTIONS COST JUST BECAUSE WE'RE PARTNERING WITH SOMEONE ELSE. AND THEN WE HAVE TO SET THOSE GOALS FOR THEM. AND SO WILL THAT COME BACK BEFORE WE APPROVE THOSE? LIKE, I DON'T WANT TO SAY YES WITHOUT THAT INFORMATION. ALL OF THESE PROGRAMS ARE INDIVIDUALLY COMING BACK TO YOU FOR YOUR CONSIDERATION. AND SO WE WILL BE HAPPY TO DIG INTO METRICS AND ALL OF THOSE THINGS THEN. YES. OKAY SO THEN AS A, AS A KIND OF WHERE I AM TO GET ON BOARD WITH THAT NUMBER, I WOULD NEED TO UNDERSTAND OUR METHODOLOGY FOR THAT. SO FOR EXAMPLE, IF, AND I DON'T IT'S SENSITIVE HOW YOU GET TO IT. BUT UNDERSTANDING WHO WE'RE REPRESENTING. RIGHT. SO FOR EXAMPLE, IF YOU HAVE A JOB AND YOU MAKE $100 A WEEK AND YOU BUY $99 WORTH OF LOTTERY TICKETS A WEEK, THEN AND YOU'RE FACING EVICTION, THAT'S DIFFERENT THAN YOU KNOW. AND THEN THERE'S KIDS AND THERE'S A LOT OF DIFFERENT VARIABLES THERE. I DON'T KNOW HOW MUCH OF THAT WE CAN GET INTO. SO I NEED TO BE EDUCATED THERE. BUT THEN ALSO, JUST UNDERSTANDING WHAT THAT MONEY IS ALLOWED TO BE SPENT ON. MAYBE THAT'S WHERE WE GO. AND SO I'LL TAKE YOUR GUIDANCE, BUT JUST EARLY ON AND OUT THERE, I CAN'T GET ON BOARD IF WE'RE NOT HAVING GEOGRAPHIC RESTRICTIONS THAT ARE FIRMLY WHICH I'M SURE YOU'RE ON BOARD WITH. BUT THEN ALSO MORE SENSITIVE TO THAT, THERE'S ALSO, WORK STATUS, LEGAL STATUS, ALL THOSE THINGS WHEN WE'RE TALKING ABOUT TAXPAYER MONEY, YOU KNOW, I HAVE TO BE SENSITIVE TO THOSE DISCUSSIONS AND UNDERSTAND WHAT OUR PARAMETERS ARE AROUND THAT, AND SO THOSE ARE THINGS AS THEY COME BACK THAT, THAT, THAT I THINK ARE THE MAIN THINGS THAT I WOULD LIKE TO SEE. AND THEN THAT YOU DIDN'T TOUCH ON THAT. I'M CURIOUS IF YOU'VE HEARD OF IT FROM ANYONE, WELL, THIS YOU'VE WE'VE TALKED ABOUT BEFORE, FROM A DENSITY WAIVER STANDPOINT, I'D BE ALL IN ON IF WE'RE TALKING ABOUT PARTNERING WITH SOMEONE AND WE'RE GIVING THEM MORE DENSITY IN CERTAIN AREAS. ABSOLUTELY SUPPORTIVE OF THAT. BUT AKIN TO THAT IS, HAVE YOU HEARD OF ANYONE, A CITY BUILDING HOUSING, NOT PER SE NOT TO MANAGE, BUT IN DENTON'S A LITTLE UNIQUE IN THAT WE HAVE SOME OLDER UNITS AND I WOULDN'T WANT TO DISPLACE ANYONE. RIGHT SO THAT YOU HAVE A TEMPORARY PLACE TO GO WHILE WE REBUILD AND, YOU KNOW, ARE YOU TRACKING WITH ME? SO FOR EXAMPLE, THERE'S A LEGACY APARTMENT, LET'S SAY BUILT IN THE 1970S. RIGHT? RIGHT. AND SO IT'S INEFFICIENT. AND IF WE GO TO THAT OWNER AND SAY, HEY, WE WANT TO ADD DENSITY, ADD ENERGY EFFICIENCY, RECLAIM SOME PARKING LOT, ETC. WELL, LET'S SAY YOU HAVE 100 TENANTS, 100 TENANTS HAVE TO GO SOMEWHERE WHILE WE'RE REBUILDING, OR MAYBE THEY'RE REALLY REBUILDING PLACE. I DON'T KNOW, BUT HAVE YOU LOOKED INTO WHAT ARE THERE PEOPLE DOING THAT? HAVE YOU LOOKED INTO THAT THAT SCENARIO WHERE YOU HAVE AN EXISTING OLDER UNIT, NOT EFFICIENT, NOT EFFICIENT USE OF SPACE, DON'T WANT TO PUT ANYONE OUT WHILE YOU'RE REBUILDING. RIGHT. I'LL ANSWER THAT QUESTION BEST I CAN. AND THEN I THINK DANNY HAS SOMETHING TO SAY. ALSO, IN TERMS OF LARGE SCALE REHABILITATION PROJECTS, WHICH IS WHAT I'M HEARING, WE DON'T SEE THOSE DONE A LOT BECAUSE THEY INVOKE THE UNIFORM RELOCATION ACT, WHICH IS WHAT YOU'RE MENTIONING IS TENANTS NEED TO BE SAFELY HAVE SOMEWHERE ELSE TO LIVE IN THAT TIME. AND THERE'S A LOT OF LAWS TO PROTECT THOSE TENANTS AROUND THAT. BUT I WILL SAY WE SEE THAT DONE ON A SMALL SCALE WITH INFILL[01:15:02]
DEVELOPMENT FROM OUR LOCAL NONPROFIT AND SMALL DEVELOPERS EVERY SINGLE DAY. AND SO, YES, WE SEE IT LESS ON A LARGE SCALE. WE DO SEE IT ON A SMALL SCALE. I WILL LET DANNY SPEAK. ACTUALLY, HIS ANSWER WAS GREAT BECAUSE WE HAVE LOOKED AT SMALLER INFILL WHERE WE'RE LOOKING AT A NEIGHBORHOOD AND TARGETING A NEIGHBORHOOD WHERE WE WOULD IMPROVE THE HOME. THE HOME OWNER IN THE NEIGHBORHOOD WOULD MOVE TO THAT NEW HOME. THEIR HOME WOULD THEN BE IMPROVED IN.ANOTHER PERSON WOULD MOVE INTO THAT. SO WE HAVE LOOKED AT IT AT THAT SMALLER SCALE, NOT AT THE LARGER SCALE THERE. HAVE THERE HAVE BEEN DEVELOPERS WHO'VE LOOKED AT REDEVELOPMENT OF SENIOR HOUSING WITH THE HOUSING AUTHORITY TO AS A PROJECT. SO IT HAS BEEN LOOKED AT AT OTHER LEVELS TOO. SO IT'S NOT SOMETHING THAT'S OUT OF THE REALM OF POSSIBILITIES, OF SOMETHING WE COULD DO OR I THANK YOU FOR THAT, ESPECIALLY WITH THE PFC PROGRAM COMING ONLINE, THERE'S OPPORTUNITIES WHERE WE WOULD BE COMING IN AS A PARTNER ON SOMETHING LIKE THAT. SO THERE'S POTENTIAL. SURE YEAH. NO, I THINK THAT WOULD BE GREAT IF JUST AT LEAST UNDERSTANDING WHAT GOES INTO THAT. RIGHT. SO ON A LARGE SCALE, IF WE HAVE A CITY UNIT PER SE OR COMPLEX, THAT IS A KIND OF A PLACE FOR TENANTS TO LIVE WHILE WE'RE RECLAIMING THESE SPACES, RECLAIMING SOME OF THOSE GREEN SPACES, RECLAIMING SOME OF THAT ASPHALT. YOU KNOW, I THINK PREDOMINANTLY AROUND THE UNIVERSITY, IT'S AREAS WHERE WE CAN GET PRETTY AGGRESSIVE AND GIVE DENSITY WAIVERS, ETC. SO WE CAN GET MORE PEOPLE IN THAT SPACE, MORE GREEN SPACE IN THERE. AND I THINK IT'S A WIN WIN. AGAIN, I DON'T KNOW IF THE MATH PENCILS, BUT I WOULD BE OPEN TO HAVING THOSE DISCUSSIONS. IF YOU GET INTO IT AND YOU SAY THERE'S A PATH THERE. YEAH, I THINK WE WOULD THEN SEEK YOUR DIRECTION BECAUSE I DON'T SEE US IN A SCENARIO WHERE WE'RE EVER OWNING PROPERTY. WE MIGHT BE A PARTNER IN A DEVELOPMENT DEAL, LIKE THROUGH THE PFC OR HOUSING FINANCE CORP DEAL, BUT I ACTUALLY WOULD TAKE YOUR DIRECTION FROM COUNSEL IF THAT'S A DESIRE. YEAH. AND SO TO THAT END, GREAT POINT. BUT AND SO I THINK IT WOULD BE PARTNERING WITH AND I WON'T GIVE A PLUGS BUT SO IF WE HAD THERE'S SEVERAL OF THESE SAME PEOPLE THAT OWN SEVERAL UNITS AND CONDENSED AREAS AROUND THE UNIVERSITY. SO GOING TO ONE OF THEM AND SAYING, HEY, LET'S WORK TOGETHER TO HAVE A UNIT THAT YOU OWN. BUT WE PARTICIPATE THAT ALLOWS YOU TO REBUILD AND MAYBE PARTNER WITH THEM THAT WAY BECAUSE THEY OWN SO MANY UNITS. MAYBE THERE'S AN APPETITE FOR THAT. SO THAT WOULD BE THAT'D BE SOMETHING I'D BE INTERESTED IN. AGAIN, JUST THE GREEN SPACE ALONE WE COULD RECAPTURE WOULD BE FANTASTIC.
AND THEN ENERGY EFFICIENCY TOP TO BOTTOM RIGHT. SO OKAY, DID I SEE YOUR HAND AGAIN, PLEASE? YEAH. REPRESENTATIVE FROM DISTRICT FOUR. WE USE AFFORDABLE HOUSING. BANDY THAT AROUND A LOT. CAN YOU ASSIGN A NUMBER TO THAT? ABSOLUTELY, SO AFFORDABLE MEANS THAT A HOUSEHOLD AT 80% OF THE AREA MEDIAN INCOME OR BELOW CAN LIVE IN THAT PLACE AND SPEND NO MORE THAN 30% OF THEIR INCOME ON THEIR HOUSING, THE AREA MEDIAN INCOME IS SET BY HOUSING AND URBAN DEVELOPMENT FOR THE REGION. SO WE FALL IN THE DFW REGION, I WOULD NEED TO PULL UP A CHART THAT I DON'T HAVE IN THIS PRESENTATION TO GIVE YOU AN INCOME NUMBERS AND WHAT THOSE RENTS LOOK LIKE, BUT I CERTAINLY CAN POINT TO A HOUSE IN YOUR HEAD AND TELL ME HOW MUCH IT COSTS. HOW MUCH? WHAT'S THE PRICE? WHAT'S HOW MUCH DO IT COST? THAT'S WHAT I WANT TO KNOW. ON THE HIGHER END OF AFFORDABLE HOUSING THAT WE WOULD SAY FOR A HOUSEHOLD THAT IS MORE THAN ONE PERSON AT THAT 80% AMI MARK, WE'RE LOOKING AT 1200 ISH IN DENTON RIGHT NOW AT $1,200 IN RENT. YES, THAT'S RENT IN RENT.
HOW MUCH DOES THE HOUSE. I'M TALKING ABOUT A SINGLE FAMILY UNIT. WE'RE GOING TO BUY A HOUSE. HOW MUCH IS IT? WHAT'S THE PRICE? I BELIEVE WE'RE AT ABOUT 350,000 NOW, THE ORIGINAL MVA. IF I REMEMBER CORRECTLY, THE ORIGINAL MARKET VALUE ANALYSIS, IF I REMEMBER CORRECTLY, PUT THAT AT AROUND 300,000. BUT IT'S BEEN A FEW YEARS SINCE THEN. OKAY 350 IS ABOUT WHERE I WOULD HAVE GUESSED. YES, AROUND $350 THOUSAND DOLLARS. YES. OKAY, OKAY. ALL RIGHT. THANK YOU. OKAY, OKAY. REPRESENTATIVE FROM DISTRICT THREE. YEAH. GOOD DISCUSSION. I THINK A LOT OF, GOOD IDEAS EXPRESSED. THIS MIGHT BE A LITTLE TOO BLACK AND WHITE, BUT I JUST WANT TO CONNECT THE DOTS. IF YOU THINK THIS IS A USEFUL EXERCISE, BUT I WANT TO CONNECT. YOU KNOW WHAT I SAID ABOUT TRYING TO QUANTIFY THE UNIT GENERATION OF EACH OF THE TACTICS AND THEN, YOU KNOW WHAT YOU SAID ABOUT THERE'S SORT OF A THRESHOLD LEVEL YOU GOT TO BE AT FOR SOME OF THESE PROGRAMS TO EVEN BE IN IT, YOU KNOW, TO HAVE IT BE EFFECTIVE. AND THEN WHAT DOCTOR BECK SAID ABOUT, WELL, WHAT'S THE SORT OF PRODUCTIVITY OF EACH OF THEM? SO, SO, YOU KNOW, FIRST OF ALL, I WOULD SAY I'M SORT OF FINE, LIKE WITH THE OVERALL DIRECTION. AND I KNOW WE'RE NOT PULLING THE TRIGGER ON ALL THREE YEARS AT ONCE, OR EVEN ONE YEAR. WE'RE GOING TO SEE A LOT MORE DETAIL BEFORE WE GET TO IT. BUT STILL, WHILE WE'RE AT THAT KIND OF OVERVIEW LEVEL, IF
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YOU COULD HAVE YOUR POINT OF VIEW ABOUT EITHER RANGE OR CONSERVATIVE NUMBER OF UNIT GENERATION FOR EACH TACTIC, AND YOU'VE GOT A POINT OF VIEW, WELL, YOU ALREADY HAVE A BUDGET DOLLARS, RIGHT? THEN IT'S SIMPLE MATH. LIKE I SAID, MAYBE TWO BLACK AND WHITE TO SAY DOLLARS PER UNIT GENERATED. AND THAT THAT COULD POINT YOU TO LIKE, OH, MAYBE WE'RE UNDERUTILIZING SOME, YOU KNOW, VERY EFFICIENT TACTIC. SO I'M GOING, YEAH. SO THAT'S SOMETHING STAFF CAN WORK ON. OKAY ALL RIGHT. ANY OTHER QUESTIONS. REPRESENTATIVE FROM DISTRICT FIVE. JUST A QUICK QUESTION ABOUT THE EVICTION PREVENTION UNTIL COUNCILMEMBER HOLLAND THAT THIS MONEY IS SIMPLY FOR LEGAL SERVICES, CORRECT? CORRECT. YES. IS THIS SPENT WITH A NONPROFIT I ASSUME? YES, WITH A NONPROFIT. WHO IS ALREADY DOING THIS WORK? YES. IS THIS A LOCAL NONPROFIT? IT'S A STATE NONPROFIT. DOES ARE THERE ANY RESTRICTIONS ON ANYTHING LIKE THAT? IT WOULD BE A REQUEST FOR PROPOSALS. SO THAT'S NOT WE HAVEN'T IDENTIFIED SOMEONE AS OF YET OKAY. ALL RIGHT. I JUST WAS CURIOUS ABOUT HOW YOU HOW YOU GOT THERE. SO THANK YOU VERY MUCH. ANY OTHER QUESTIONS? ALL RIGHT. THANK YOU VERY MUCH. APPRECIATE IT, THAT CONCLUDES ITEM D TAKES US TO OUR CLOSED[1. Closed Meeting:]
MEETING. SO WE'LL SET THE ROOM AND I'LL HIT YOU UP FOR THAT. THANK YOU. PLACEHOLDER. SO THAT NO ONE CALLED HIM ON IT RIGHT. OKAY, THE COUNCIL WILL NOW ADD 3:21 P.M. CONVENE IN CLOSED MEETING TO DELIBERATE THE CLOSED MEETING ITEM SET FORTH ON THE AGENDA, WHICH INCLUDES ITEM A, ID 241408. DELIBERATIONS REGARDING PERSONNEL MATTERS UNDER TEXAS GOVERNMENT CODE SECTION 551.074, ITEM B, ID 241409. DELIBERATIONS REGARDING PERSONNEL MATTERS UNDER PERSONNEL MATTERS UNDER TEXAS GOVERNMENT CODE SECTION 551.074, AND THEN ITEM C AND D WERE JUST PLACEHOLDERS, SO WE WON'T TAKE THOSE ON. WE WILL SET THE ROOM AND THEN RE GET STARTED AT IN JUST A FEW* This transcript was compiled from uncorrected Closed Captioning.