[00:00:02]
I, MY WORK.[1. Meeting called to Order The AACOG Executive Committee is meeting in accordance with Chapter 551 of the Texas Government Code (Open Meetings Act). As such, the Executive Committee reserves the right to retire into executive session concerning any of the items listed on this Agenda whenever it is considered necessary and legally justified under the Texas Open Meetings Act.]
US ALL, KEEPING ME IN PRAYERS.UH, GOOD MORNING EVERYONE, AND WELCOME TO THE ALAMO AREA COUNCIL OF GOVERNMENT'S EXECUTIVE COMMITTEE MEETING WEDNESDAY, OCTOBER 16TH, 2024 AT 10:00 AM I'D LIKE TO WELCOME OUR STAFF.
THANK YOU FOR BEING HERE, OUR BOARD MEMBERS, AND, UH, WE'LL GET STARTED AS WE CALL THE MEETING TO ORDER.
I WILL BEGIN BY, UH, HAVING THE PLEDGE OF ALLEGIANCE AND CONTINUE FROM THERE.
IF YOU'LL PLEASE STAND AND JOIN ME.
I PLEDGE TO ALLEGIANCE THE FLAG OF UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS.
ONE NATION UNDER GOD INDIVIDUAL.
WOULD THERE BE ANY JUSTICE FOR ALL TO THE TEXAS FLAG? HONOR UNDER THE TEXAS FLAG, IP ALLEGIANCE TO THE TEXAS ONE STATE AND INDIVISIBLE.
UH, SUSIE, UH, ROLL CALL PLEASE.
COUNCILMAN ROCHA GARCIA JU FOR HER FROM MR. HAT WALKER.
JUDGE HEKE IS FROM MATERNITY LEAVE THAT HAD A NEW BABY LAST FRIDAY.
MS. LEWIS, MAYOR SCHROER? HERE.
SHE'S SUPPOSED TO BE COMMISSIONER AKIN FOR JUDGE WHITMAN.
THANK YOU ALL FOR BEING HERE AND CONGRATULATIONS TO JUDGE HECKY ON THE NEW BABY.
UH, ITEM THREE, WHICH CALLS FOR PUBLIC COMMENTS ARE, ARE THERE ANY, IS THERE ANYONE SIGNED UP? NO PUBLIC COMMENTS.
NO PUBLIC COMMENTS AT THIS TIME.
[ Consent Agenda]
CONSENT AGENDA.WE'VE GOT THOSE COUPLE OF ITEMS THERE AND IT'S ONLY, IS IT JUST THOSE TWO REPORTS? AND LET'S SEE, ITEM FOUR, I CONSIDER AND ACT UPON THE RECOMMENDATION TO APPROVE JULY 17TH, 2024.
IS THERE A MOTION FOR THAT? PLEASE? MOVE TO APPROVE.
WHO WAS THAT? OH YEAH, A SECOND.
IF YOU'ALL COULD HELP ME WITH YOUR NAME, I'D APPRECIATE IT.
SO THE MOTION, UM, FOR, TO APPROVE THE CONSENT AGENDA WILL BEGIN THE, UH, VOTE.
ANY WITH NAY? THE ICE? HAVE IT? THE MOTION IS APPROVED.
[5. Human Resources Liasion Report - Ms. Lisa Lewis/Judge Wade Hedtke]
ITEM FIVE, HUMAN RESOURCES LIAISON REPORT.MS. LISA LEWIS AND JUDGE HECKY, BOTH OF NEITHER ARE HERE.
HAVE WE HEARD FROM MS. LEWIS? UH, NO.
WE HAVE NOT HEARD FROM MS. LEWIS, BUT REPORT WILL.
WE DID, UH, GOOD MORNING CHAIRMAN AND, UH, CHAIR PERSON,
UH, WE DID RECEIVE A REPORT FROM, UH, MS. LEWIS AND, UH, BOTH HER AND HECKY DID REVIEW AND THERE WAS NOTHING, UH, REQUIRED FOR MOVEMENT, UH, TO BE GIVEN TO THIS BOARD FOR ANY, UH, MOVEMENT.
I'M SORRY I CAN'T GET MY WORDS TOGETHER THIS MORNING.
THERE'S NOTHING THAT WE NEED TO CONSIDER THIS MORNING.
I DUNNO WHAT'S WRONG WITH MY WORDS TODAY.
ALL RIGHT, THANK, THANK YOU, MS. JOHNSON.
[6. Discussion and appropriate action upon the recommendation to approve the 3rd Quarter 2024 financial report. - Julio Elizondo A. Dashboard B. Balance Sheet C. Revenue and Expenditures D. Administrative Budgets E. Quarterly Investment Report]
THAT WE WILL MOVE TO ITEM SIX, UH, DISCUSSION.APPROPRIATE ACTION UPON THE RECOMMENDATION TO APPROVE THIRD QUARTER 2024 FINANCIAL REPORT.
UM, MR. ELIZONDO, GOOD MORNING, MADAM CHAIR.
MY NAME IS JULIO UND AND I'M THE CHIEF FINANCIAL OFFICER, AND TODAY I'LL BE GIVING YOU AN UPDATE ON THE THIRD QUARTER FINANCIAL STATEMENTS WHENEVER THEY COME UP ON THE SCREEN HERE.
WELL, JULIO, IT'S OKAY, WE CAN GO OLD SCHOOL.
[00:05:01]
I THINK WE ALL HAVE IT IN OUR PACKETS.WE'LL JUST MOVE ON HERE AND I'LL GO THROUGH THESE SLIDES.
UH, AS I MENTIONED, I WILL GIVE YOU AN UPDATE ON OUR THIRD QUARTER FINANCIAL STATEMENTS, A BRIEF OVERVIEW OF WHAT WE RECOVERY TODAY.
WE'LL GO OVER OUR FINANCIAL DASHBOARD, OUR BALANCE SHEET, AS WELL AS OUR STATEMENT OF REVENUES AND EXPENDITURES AND EVERYTHING IN BETWEEN.
WE HAVE OUR FINANCIAL DASHBOARD AT THE END OF SEPTEMBER.
AS YOU CAN SEE, UH, AT THE THIRD END OF THE THIRD QUARTER, WE'RE AT 76% SPENT ON THE EXPENDITURE SIDE, UH, BEING THE THIRD QUARTER.
THAT'S TYPICALLY WHERE YOU WANT TO BE.
WE DID HAVE SOME PROGRAMS THAT HAVE BEEN OVER OVERPERFORMING AS WELL AS SOME THAT HAVE BEEN UNDERPERFORMING, WHICH I'LL HIGHLIGHT IN THE FOLLOWING SLIDES.
THE OTHER TWO METRICS THAT I DID WANNA HIGHLIGHT IS THE, UH, ACCOUNTS RECEIVABLE SLIDE.
OUR METRIC, YOU CAN SEE WE'RE AT ABOUT $8.8 MILLION TO IN THE MONTH, AND THAT'S KIND OF THE, THE RANGE WHERE WE'VE BEEN AT ALL YEAR.
UH, WE DID HAVE AN OUTLIER LAST MONTH, BUT WE'VE COLLECTED THAT, UH, SINCE THEN.
AND THEN THE MOST, UH, ONE OF THE MORE IMPORTANT ONES TO ME IS DOWN BELOW.
ON THE BOTTOM LEFT, UH, YOU CAN SEE OUR AGED ACCOUNTS SUITABLE OVER 90.
UH, EARLIER THIS YEAR WE WERE SITTING AT 20%, WHICH IS A VERY, VERY HIGH, UH, RANGE TO BE IN.
I'M VERY PLEASED TO ANNOUNCE THAT WE'VE COLLECTED ON A LOT OF THOSE OLDER, UH, ACCOUNTS RECEIVABLES.
WE HAVE OUR COMBINED BALANCE SHEET AT THE END OF SEPTEMBER.
YOU CAN SEE OUR TOTAL FIXED, UH, TOTAL ASSETS ARE ABOUT $49.4 MILLION.
A FEW FEW MILLION HIGHER THAN WE'VE, WE WERE, UH, A YEAR AGO TODAY.
AND THE MAJORITY OF THAT IS DUE TO FIXED ASSETS.
OUR FUND BALANCE IS BROKEN UP BY BOTH UNRESTRICTED AND RESTRICTED AND BY PROGRAM.
UH, THE ONLY ONE I KIND OF WANT TO HIGH I DO WANNA HIGHLIGHT TODAY IS THE MILITARY AND VETERANS AFFAIRS.
UH, AS YOU CAN SEE HERE, WE'RE SITTING AT SEVEN POINT, UH, 7.6 MILLION FOR THE YEAR, UH, WHICH IS QUITE AN INCREASE FROM WHERE WE WERE A YEAR AGO TODAY.
UH, THE MAJORITY OF THAT IS DUE TO THE VETERANS, UH, DIRECTED GRANTS, WHICH IS STILL PERFORMING VERY WELL AS WE SPEAK.
UH, AS YOU CAN SEE, CASH AND INVESTMENTS.
UH, AT THE END OF THE THIRD QUARTER, WE ARE AT $7.8 MILLION.
UH, UH, ABOUT A MILLION DOLLARS MORE THAN WHERE WE WERE A YEAR AGO.
GREAT FINANCIAL POSITION TO BE IN.
UH, THE RATES HAVE DROPPED A LITTLE BIT, BUT, UH, AS YOU'LL SEE IN THIS NEXT SLIDE, WE DID LOCK IN ALL OF OUR CDS, UH, FOR AT 5%, WHICH SHIRTS BANK CAN TRUST, UM, OOPS, AT WHICH SHIRTS BANK CAN TRUST.
AND YOU CAN SEE FOR THE YEAR, WE'VE EARNED 78,000 TOTAL IN INTEREST.
ACCOUNTS RECEIVABLE, AS I MENTIONED.
UH, OUR LARGEST BALANCE RIGHT NOW IS WITH BEAR AGING.
UH, THEY'RE CURRENTLY SITTING AT $1.9 MILLION, BUT THE, ALL OF THAT IS CURRENT.
UH, TDOT, WE DO HAVE SOME OVER 90, UH, AND WE ARE, WE HAVE BUILT THAT IN OUR, WE ARE WAITING ON THAT PAYMENT FROM TXDOT.
AND THEN THE O THE OTHER BIG OVER 90 IS OUR TMHP.
THAT'S OUR MEDICAID, AND WE CAN ALWAYS BILL THAT A YEAR AFTER.
IT'S, IT'S, UM, IT'S AFTER A YEAR COMES UP, IT CAN STILL BE REBUILT, SO THERE'S NOTHING TO WORRY ABOUT THERE.
WE TYPICALLY RANGE AT THAT ONE, ONE AND A HALF PERCENT WRITE OFF, UH, RATE FOR MEDI OUR MEDICAID BILLING.
AND LIHEAP IS THE OTHER BIG ONE WITH 212,000, BUT THAT WILL BE BILLED, UH, BY THE END OF THIS MONTH.
UM, OUR STATEMENT OF THE REVENUES AND EXPENDITURES, WE ARE CURRENTLY SITTING AT $2.6 MILLION.
UH, REVENUE OVER EXPENSES, A GREAT POSITION TO BE IN ON THE PROGRAM SIDE.
WE ARE $285,000 BELOW BUDGET, UH, IN THE ALAMO AGING PROGRAM.
THE MAJORITY OF THAT IS DUE TO VACANCIES AS WELL AS SOME, UM, UM, VARIANCE IN OUR NUTRITION SERVICES AS WELL.
AND MUCH LIKE ALAMO AGING, WE HAVE THAT SAME, UH, STORYLINE AND BEAR AGING.
AND WITH, UH, WITH THIS PROGRAM, THOUGH, THEY'RE ANTICIPATING SOME CARRY FORWARD TO THEIR FY 25 PRO, UH, BUDGET.
UH, YEAR TO DATE, THEY'RE AT 35,000 BELOW BUDGET.
THIS IS A TIMING ISSUE, AS I MENTIONED THE LAST QUARTER.
IT WILL RESOLVE AND THEY WILL EXPEND ALL THOSE FUNDS BY THE END OF THIS YEAR.
AND PUBLIC SAFETY, CURRENTLY 388,000 BELOW BUDGET, UH, DUE TO THE TARGET RANGE PLANNING GRANTS PROGRAM, DOES EX UH, DOES NOT ANTICIPATE EXPENDING THOSE FUNDS, THIS BUDGET CYCLE.
JULIO, MAY I INTERJECT ON THAT? MM-HMM.
[00:10:01]
YOUR ATTENTION.I THINK WE'VE DISCUSSED IT BEFORE.
THIS IS THE PLANNING GRANT FOR THE GUN RANGE THAT WE'VE HAD FOR TWO OR THREE YEARS.
THAT MONEY IS REALLY SITTING STAGNANT BECAUSE WE HAVE JUST NOT BEEN ABLE TO GET THAT OFF THE GROUND.
AND I ANTICIPATE THAT WE WILL BE RETURNING THAT MONEY BACK TO THE TEXAS PARKS AND WILDLIFE DEPARTMENT.
WE'RE WAITING TO HAVE A CALL WITH THEM.
UM, WHEN WE STARTED THE IDEA OF A GUN RANGE FOR TRAINING FOR OUR LAW ENFORCEMENT OFFICERS, IT WAS PRE COVID.
IT WOULD BE IN THE NEIGHBORHOOD OF $7 MILLION, WAS THE PROJECTED COST.
WE THOUGHT ABOUT FOUR AND A HALF MILLION WOULD COME FROM PARKS AND WILDLIFE.
AND, UM, WE COULD EITHER FUND THE REST OR FINANCE IT TODAY AFTER CID AND LEARNING FROM THE ARCHITECTS AND WHAT IT TAKES TO BUILD A GUN RANGE, TEXAS PARKS AND WILDLIFE, REQUIRES THAT IT BE OPEN TO THE PUBLIC AND 90% USE FOR PUBLIC USE TO BUILD A COMPETITIVE RUN RANGE.
IT TAKES ABOUT FIVE ACRES OF COMMERCIAL LAND AND ULTIMATE COST OF BEING IN THE NEIGHBORHOOD OF 15 TO $18 MILLION.
AND TEXAS PARKS AND WILDLIFE HAS GONE FROM GIVING FOUR AND A HALF MILLION DOLLARS TO A MANDATORY $1 MILLION A YEAR.
SO WE WOULD BE ON THE HOOK FOR FINDING 17 OR 18 MILLION BUCKS TO FINANCE THE PROCESS.
SO IT JUST DOESN'T, UNLESS, UNLESS THE BOARD WANTS TO GET INTO THE, INTO THE, UH, GUN RANGE BUSINESS, UH, I ANTICIPATE THAT THIS WILL NOT BE A SUCCESSFUL, UH, ENDEAVOR.
SO WE WE'RE WAITING TO TALK TO PARKS AND WILDLIFE AND LET THEM KNOW AND, AND DISCUSS IT WITH THEM, BUT WE HAVEN'T HAD THAT CALL YET.
MR. RODRIGUEZ, DO YOU HAVE APPROPRIATE GUN RANGE SERVICE RIGHT NOW FOR YOUR TRAINING? NO, THAT'S ONE OF THE BIG ISSUES.
WE HAVE TO, WE GO, I MEAN, WE DO HAVE IT, BUT WE ARE RELIANT ON THE BEXAR COUNTY SHERIFF'S DEPARTMENT.
WE EITHER LEASE THEIR GUN RANGE AND IF IT'S NOT AVAILABLE, WE GO TO ONE OF THE PRIVATE RANGES HERE IN SAN ANTONIO, AN OUTDOOR RANGE.
UH, AND THAT'S WHAT WE'RE CURRENTLY DOING.
AND SO WE'RE, UH, THE IDEA WAS WE COULD MAKE IT WORK, UM, AND, AND DO IT FOR A LITTLE BIT OF MONEY AND TRAIN JBSA FORCES, SECURITY FORCES, ABSOLUTE OTHER LAW ENFORCEMENT ENTITIES AS WELL AS THE PUBLIC.
BUT LIKE I SAY, THE COSTS ARE COMPLETELY CHANGED SINCE COVID AND THE EXPECTATIONS AND WHAT IT WOULD TAKE TO, UH, AN UNDERSTANDING OF WHAT IT WOULD TAKE TO BUILD A A COMMERCIALLY VIABLE RANGE IS, IS HAS CHANGED A LOT.
WE, WE'VE LEARNED A LOT IN THE PROCESS.
UM, HAVE WE LOOKED AT THE EXISTING GUN RANGES THAT ARE OUT THERE THAT MAY BE STRUGGLING, THAT THEY'RE MAKING AN OPPORTUNITY TO PARTNER? I DON'T BELIEVE WE HAVE.
UH, BECAUSE, UM, AND I DON'T KNOW IF THERE, I DON'T KNOW IF ANY ARE STRUGGLING, BUT I DON'T KNOW THAT WE'VE, I KNOW THAT I DON'T BELIEVE WE'VE DONE THAT, UH, ONCE AGAIN, BECAUSE WITH THE FUNDING FROM PARKS AND WILDLIFE, WE JUST DON'T HAVE, YOU KNOW, WE, WE JUST DON'T HAVE THE WHEREWITHAL IN OUR BUDGET TO TAKE ON EVEN EVEN HALF OF THAT.
YOU KNOW, IF IT WAS A 15 MILLION RANGE, WE DON'T HAVE THE SEVEN AND A HALF OR WHATEVER.
THAT TO ME, THAT'S FARFETCHED.
I UNDERSTAND WHAT YOU'RE SAYING, BUT I JUST HAVE A HARD TIME BELIEVING THAT YOU GET THAT KIND OF DOLLARS IN ORDER TO, TO DO SOMETHING LIKE THIS.
THEY'RE ALL, UH, AND WHAT WE'RE TALKING ABOUT IS A, A, A QUALITY RANGE TO BE COMPETITIVE.
AND THE THING IS FIVE ACRES, THE, THEY REALLY, THEY RECOMMEND THREE AND A HALF TO FIVE ACRES OF LAND AND FIVE ACRES OF COMMERCIAL LAND IN THIS AREA.
RIGHT OFF THE BAT, YOU'RE TALKING SEVERAL MILLION DOLLARS AND THEN YOU GET INTO THE CONSTRUCTION AND THEN, UH, THE, AS YOU KNOW, THE VENTILATION AND SO MUCH THAT'S INVOLVED IN IT, IT ADDS UP, ADDS UP QUICK.
AND, AND EVEN IF WE COULD GET IT LESS, YOU KNOW, IF WE KNOCKED OFF 5 MILLION OF THAT.
YOU KNOW, 13 MILLION STILL PRETTY STOUT FOR US.
WELL, IF YOU'D LIKE ME TO, UM, I HAVE A PRETTY STRONG RELATIONSHIP WITH THE GUY THAT RUNS THE PLACE.
UH, SO, UH, IF YOU WANNA SEND ME SOME INFORMATION, I'LL TALK TO DAVID, DR. DAVID, JOHN, IF, IF THEY WERE WILLING TO INCREASE THEIR CONTRIBUTION, I KNOW THAT THEY'RE VERY INTERESTED IN SUPPORTIVE OF THE PROJECT, BUT IT WOULD JUST BE, I MEAN, THEY WOULD, THEY WOULD HAVE TO BE REALLY VERY SUPPORTIVE
AND I'D BE GLAD TO GET YOU THE INFORMATION.
I KNOW THERE'S A LOT OF NEW INDOOR RANGES, BUT I KNOW THE OUTDOOR RANGES HAVE STRUGGLED FOR YEARS.
WHEN WE BUILT, WHEN WE BUILT THE SAPD ON THE SOUTH SIDE, WHEN I WAS DEEPLY INVOLVED IN THAT, ONE OF THE THINGS THAT I WANTED TO DO IS MAKE SURE THAT EVERYBODY, INCLUDING C**K, COULD GO OUT THERE AND USE THAT RANGE IN SAP D SOUTH
[00:15:01]
SIDE.UM, UM, WHETHER YOU'VE TALKED TO, WE, WE PRIMARILY RELY ON BCSO AND, AND BOTH OF THOSE RANGES ARE, UM, FULL.
IF YOU MISS A SLOT, IF YOU DON'T BOOK A SLOT FAST, IT GETS USED UP.
AND SO IT'S, IT'S A COMPETITIVE ENVIRONMENT FOR LAW ENFORCEMENT TO GET THEIR TRAINING NEEDS MET.
WE'LL, LET US TALK TO PARKS AND WILDLIFE AND I'LL GET BACK TO YOU AND LET YOU KNOW HOW THAT CALL WENT.
UM, MAYOR, TO FOLLOW UP WITH, UH, WHAT MR. HASSER SAID, IF THERE'S A WAY THAT WE COULD MAYBE BRING TOGETHER, UH, I KNOW THAT, UH, OUT IN OUR AREA IT'S A LITTLE BIT WEST, BUT IT'S STILL FAIRLY, UH, CLOSE PROXIMITY.
UH, THERE MIGHT BE SOME, UH, E THREE OPPORTUNITIES TO DO THAT WITH, UM, LOCAL LANDOWNERS.
WE'VE HAD A LOT OF LOCAL LANDOWNERS THAT HAVE PARTNERED UP TO DO THINGS WITH, UH, EITHER WITH, UH, GOVERNMENT ENTITIES OR WITH OTHER FOLKS TO BRING THAT TOGETHER, UH, EVEN HAVE SOME PROPERTY THAT WE COULD POTENTIALLY DO WITH THAT.
SO IF, IF YOU CAN, UH, KEEP ME IN THAT CONVERSATION PERFECTLY.
UH, MR. RODRIGUEZ, I WAS GONNA SUGGEST THAT, THAT, THAT, UH, YOU PUT TOGETHER SOME KIND OF GROUP OR TASK FORCE TO HELP YOU DEAL WITH THAT ISSUE SO THAT YOU CAN COME BACK AND REPORT HALFWAY THROUGH THE NEXT YEAR AS TO WHAT PROGRESS YOU'VE HAD AND, UH, WHAT THE OPPORTUNITIES MIGHT BE OR THE CONSTRAINTS YOU STILL HAVE.
I'D BE GLAD TO DO THAT BECAUSE I, I, LIKE I SAY, WE'RE REALLY WAITING ON THIS CALL FROM PARKS AND WILDLIFE TO SEE, UH, WHAT, WHAT THEY COULD ASSIST US WITH, UH, BECAUSE I KNOW THEY'RE VERY SUPPORTIVE OF THE PROJECT.
ONE OF THE THINGS THAT'S AN ISSUE IS THE WHOLE PLANNING GRANT IS CENTERED AROUND AN IDEA OF A GUN RANGE IN THE NORTHEAST QUADRANT.
SO WHETHER WE COULD MOVE, IT WOULD BE A QUESTION AND WE WOULD'VE TO DO ALL THE BUSINESS PLANNING AGAIN, TO SEE THE VIABILITY AND, AND THE TRAFFIC AND ALL THAT TO SEE.
AND IF YOU COULD ACTUALLY SUPPORT THAT WITH VIABLY WITH, UH, WITH TRAVEL.
JUST BECAUSE OF THE TIME CONSTRAINTS.
THEN THAT'S TOTALLY UNDERSTANDABLE.
ANYWAY, I'M SORRY TO INTERRUPT.
AND I WANTED YOU TO HAVE A REELECT REALISTIC ASSESSMENT OF THAT GRANT.
ALL RIGHT, SIR, YOU CAN CONTINUE IT, PLEASE.
AND THEN THE LAST BIT I WANTED TO TALK ABOUT WAS THE ADMINISTRATIVE BUDGETS.
SO WE ARE CURRENTLY AT 2%, UH, UNDER BUDGET.
UH, AS YOU'LL SEE IN THE PRESENTATION THAT JOHN'S GONNA GIVE IN A COUPLE ITEMS. UH, WE ARE FORECASTING A OVER RECOVERY THIS YEAR, SO THAT'S A GREAT THING, UH, SEEN AS WE'RE, WE'RE BUDGETING FOR AN UNDER RECOVERY NEXT YEAR.
UH, AND HE'LL TALK ABOUT THAT IN HIS PRESENTATION TO FOLLOW.
UH, BUT THAT DOES CONCLUDE MY PRESENTATION AT THIS TIME.
BE HAPPY TO ENTERTAIN ANY QUESTIONS YOU ALL MAY HAVE.
WELL, ANY QUESTIONS FROM THE BOARD ON THIS PRESENTATION? WELL, THANK YOU, SIR.
WE WILL MOVE NOW TO OUR NEXT SESSION.
IS THERE A MOTION TO ACCEPT THIS REPORT JUST GIVEN TO US ON OUR FINANCIAL, ON OUR QUARTERLY FINANCIAL REPORT? SO MOVED.
SECOND BY, UH, JUDGE TILL, UH, ANY DISCUSSION? YES.
WE, THIS, THE VOTE IS TO, DO WE HAVE TO VOTE ON THAT? NO.
SO THAT ITEM WILL MOVE FORWARD TO THE FULL BOARD
[7. Discussion and appropriate action to amend the Personnel Policy to state that Cost of Living Adjustments (COLA) are to be determined at the discretion of the Board of Directors. - Clifford Herberg]
ITEM SEVEN DISCUSSION AND APPROPRIATE ACTION TO AMEND THE PERSONNEL POLICY TO STATE THE COST OF LIVING ADJUSTMENTS.UH, TO BE DETERMINED AT THE DISCRETION OF THE BOARD OF DIRECTORS ARE MR. HERBERG.
THE EXECUTIVE COMMITTEE, SHE SAID WE DIDN'T HAVE TO VOTE.
A MOTION AND A SECOND TO MOVE TO THE BOARD AND THEN WE HAVE TO, TO TAKE A, OKAY, WE HAVE A MOTION.
MS. SECOND, ANY DISCUSSION ON THE ITEM TO MOVE THIS FINANCIAL REPORT TO THE BOARD? SEEING NO DISCUSSION.
ANY OPPOSED WITH NO, THE MOTION CARRIES.
I'M SORRY, I MISUNDERSTOOD, SUZIE.
ALRIGHT, GOOD MORNING, MEMBER.
I'M TRYING TO START HERE WITH A LITTLE BIT OF HISTORY.
WHEN I CAME TO THE AGENCY IN 2015, UH, THE, MY PREDECESSOR PUT IN A POLICY, UH, THAT WOULD AFFECT THE 2016 BUDGET.
AND YOU CAN SEE, UH, THE NUMBERS THERE BEFORE YOU.
THAT AND THE POLICY REFLECTED THAT WE WOULD TIE ANY KIND OF ACROSS THE BOARD PAY RAISES TO THE CPI THAT IS RECEIVED BY SOCIAL SECURITY RECIPIENTS.
[00:20:01]
CAN SEE, AS A PRACTICAL MATTER, WHEN IT'S ABOVE 3%, WE DON'T FOLLOW THAT POLICY.AND SO IF YOU LOOK FROM 22, 23 AND 24, OUR, OUR EMPLOYEES ARE NOW RUNNING 8.8% BELOW, UH, THE CONSUMER PRICE INDEX FOR SOCIAL SECURITY EMPLOYEES.
AND THE POLICY THAT WAS EXISTING BEFORE THIS IMPLEMENTATION OF THIS CPI RULE WAS THAT THE COST OF LIVING INCREASES OF ANY KIND ACROSS THE BOARD PAY INCREASES WOULD BE DETERMINED AT THE DISCRETION OF THE BOARD.
AND THAT'S REALLY WHAT I WANT TO DO.
AND IF YOU LOOK AT, MAY I SEE THE NEXT SLIDE REAL QUICK, OR THE ONE BEFORE IT? THE ONE ON THE POLICY, THE RED LINE.
WELL, IF IN YOUR PACKET THERE'S A, ACROSS THE BOARD PAY RAISE INCREASE, AND THE LINE, THE LANGUAGE REMAINS EXACTLY THE SAME FROM PRIOR TO 2015, EXCEPT WE WOULD STRIKE OUT THE LANGUAGE THAT WAS ADDED TO MAKE, TO TIE IT TO THE COST OF LIVING FOR SOCIAL SECURITY, UH, UH, INCREASES.
AND BASICALLY ALL THIS DOES IS RETURN ACROSS THE BOARD, PAY INCREASES TO THE BOARD'S DISCRETION, AND YOU CAN DECIDE WHAT YOU WANT TO DO, UH, GOING FORWARD BASED ON OTHER FACTORS BESIDE THE CPI, SUCH AS MARKET CONDITIONS, EMPLOYEE MORALE, RETENTION GOALS OF, YOU KNOW, FOSTERING EMPLOYEE RETENTION.
AND ONE OF THE THINGS I WOULD POINT OUT IS THAT IF YOU LOOK IN 2016, FOR INSTANCE, I RECALL THERE WAS A MOVE BY CERTAIN BOARD MEMBERS TO, UH, TAKE THE OPPORTUNITY TO GIVE THE EMPLOYEES A 2% COLA.
WELL, BECAUSE WE HAD TIED IT TO THIS POLICY, NO, NO, NO COST OF LIVING OR NO, UH, WAGE ADJUSTMENT WAS GIVEN.
LIKEWISE, IN 2017, THE CPI WAS 0.3%.
SO THAT'S WHAT OUR EMPLOYEES GOT WAS A 3%.
I DOUBT AS A PRACTICAL MATTER, IF THE BOARD HAD AN OPPORTUNITY TO PROVIDE AND ACROSS THE PAY RAISE, THEY WOULD, WOULD SUGGEST 0.3, THEY MIGHT HAVE GIVEN 1%, THEY MIGHT HAVE GIVEN 2%, EVEN HALF A PERCENT.
THAT WOULD'VE GIVEN A LITTLE CUSHION TO THE EMPLOYEES WHEN THE BAD TIMES CAME.
AND SO WHEN THE BAD TIMES COME, WE DIDN'T HAVE THAT CUSHION.
AND AS I SAID, THE EMPLOYEES ARE NOW 8.8% BEHIND, UH, IN THE, IN THE, UH, CPI THAT WE HAVE BOUND OURSELVES TO.
SO, AS I SAID, AS A PRACTICAL MATTER NOT BEING FOLLOWED, AND SO I JUST WANT TO RETURN IT.
MY SUGGEST IS THAT WE RETURN IT BACK TO THE BOARD'S DISCRETION TO GIVE, GIVE ACROSS THE BOARD PAY INCREASES, UH, WHEN, WHEN THE BOARD AT ITS SOUND DISCRETION DE UH, DEEMS IT WISE.
UH, AND THE REASON THAT I'M BRINGING THIS BEFORE WE DO THE BUDGET PRESENTATION IS IN AN EFFORT TO NARROW THAT GAP, UH, THAT WE SEE ON THAT 8.8% DECREASE, UM, I AM PROPOSING IN THIS YEAR'S BUDGET OF 4% COLA, WHICH IS GONNA VARY FROM THE, FROM THE PROJECTED 2.5 OR 2.7% SOCIAL SECURITY CPI THAT, UH, I'VE BEEN READING ABOUT.
SO I'M ASKING THE BOARD TO VARY FROM THAT CPI IN THIS UPCOMING BUDGET.
AND THAT'S WHY WE NEED TO DO THIS POLICY CHANGE IF THE BOARD AGREES.
UH, AND SO WITH THAT, I'D BE GLAD TO ANSWER ANY QUESTIONS.
I WOULD LIKE TO POINT OUT THAT IN TIME THAT I, I'VE BEEN HERE SINCE 2015, THE AGENCY BUDGET WITH THE SAME 300 EMPLOYEES, ROUGHLY 300, 3 40 EMPLOYEES, HAS GONE FROM $43 MILLION BUDGET TO A PROJECTED 99 MILLION BUDGET.
IT WENT FROM A FUND BALANCE OF ABOUT THREE AND A HALF MILLION TO NOW IN EXCESS EXCESS OF, UH, $8 MILLION AND A FUND BALANCE.
AND SO YOU HAVE THE MONEY TO DO THIS, EMPLOYEES HAVE PERFORMED WELL, THEY'RE DOING MORE AND, UH, WORKING FOR LESS.
SO, UM, AND, AND ONE OTHER STATISTIC I WOULD LIKE TO SHARE WITH YOU IS THAT IF YOU TAKE OUT THE DIRECTORS OUT OF OUR, OUR 317 CURRENT FULL-TIME EMPLOYEES, UH, THERE'S, THERE ARE 14 DIRECTORS OF POSITION POSITIONS AND ABOVE, YOU TAKE THOSE 14 POSITIONS OUT, THE OTHER 303 EMPLOYEES ON AVERAGE, AVERAGE MAKE A SALARY OF 49,900.
SO WE ARE NOT, UH, EXCESSIVE IN OUR SALARIES FOR THIS MARKETPLACE.
I WOULD LIKE TO SEE IF, IF WE CAN GIVE THEM JUST A LITTLE TO NARROW THAT GAP THAT THEY'VE, UH, LOST AND, UH, AND DUE TO INFLATION, THE BUYING POWER.
NOW WITH THAT, YOU GOT TO ANSWER ANY QUESTIONS YOU MAY HAVE.
THANK, THANK YOU, UH, FOR THE PRESENTATION.
UH, MS. LEWIS, A COUPLE OF QUESTIONS.
IS THAT THE ONLY METHODOLOGY FOR PAY INCREASES AS COLA FOR YOU? YOU DON'T HAVE A MERIT INCREASE PROCESS? THERE'S NO OTHER
WE, WE DO HAVE MERIT AND WE DO HAVE BONUS FOR MANAGERS AND ABOVE, BUT WE DO HAVE A, A, A, UH, MERIT INCREASE AS WELL.
AND HOW OFTEN DO YOU DO THAT? ON AN ANNUAL CYCLE? YES.
WHAT ARE, WHAT'S YOUR RANGE ON MERIT ON AVERAGE? WELL, WHEN YOU SAY RANGE UP TO FIVE, 5%.
[00:25:01]
OKAY.THAT'S THE CONTEXT I'M LOOKING FOR.
SO THIS IS JUST A, THIS IS TRULY A CATCH UP FOR CORRECT, CORRECT.
JUST TO NARROW THAT, THAT GAP AND THAT LOSS IN SPENDING POWER FROM INFLATION, HOW DO YOU KNOW THAT THE 4% IS RIGHT? WHAT, WHAT GIVES YOU THE INSTINCT THAT IT'S FOUR AND NOT FIVE OR FOUR AND NOT SIX OR BECAUSE YOU'RE, WELL, IF I HAD MY DRUTHERS, I'D LIKE TO GIVE MORE, BUT AS A PRACTICAL MATTER, ARE THE IMPACT ON PROGRAMS WE HAVE TO BALANCE THE IMPACT ON THE PROGRAMS AND, UH, WHAT THEY CAN, THEY CAN AFFORD.
AND, UH, QUITE FRANKLY, MY PLAN, PLAN IS, IS, IS, UH, DEPENDING ON HOW PROGRAMS PERFORM, PERFORM, I MEAN THE COST AND, UM, THE, UH, RATE THAT WE CAN NEGOTIATE WITH OUR COGNIZANT AGENCY ON OUR GRANT MANAGEMENT.
MY GOAL IS TO ADD MORE INCREASES GOING FORWARD TO TRY TO NARROW THAT GAP.
BUT IT WILL JUST DEPEND ON, ON MY, BECAUSE OF THE IMPACT ON PROGRAM, MY GUIDE TO THEM HAS BEEN THIS YEAR THAT IF THIS HOLE HAS PASSED, I WANT THEM TO LOOK, NOT DECREASE PROGRAM SERVICES, BUT LOOK TO THE TRAINING BUDGET, TRAVEL, BUDGET, OTHER DISCRETIONARY FUNDS, OUTREACH MATERIALS.
AND SO IT'LL BE CUTTING THERE OR DECREASING THERE ON THIS WITHOUT AN IMPACT ON PROGRAM.
AND SO IF I CAN CONT SO I CONTINUE TO DO THAT AND STILL NOT SEE, UH, AN IMPACT IN SERVICES, I WOULD LIKE TO PROPOSE ADDITIONAL INCREASES GOING, GOING FORWARD NEXT YEAR.
ONCE AGAIN, IT WOULD BE THE DISCRETION OF THE BOARD.
IS YOUR TURNOVER HIGHER NOW THAN IT WAS SAY IN 2020? NO.
BUT OUR TURNOVER IS BEEN HIGH.
OUR TURNOVER WOULD'VE BEEN HIGH SINCE I'VE BEEN HERE, BE HONEST WITH YOU.
IS THAT A FAIR FAILURE BECAUSE YOU'RE A FAN BELOW MEDIUM WAGE? YEAH, BUT, BUT IT HAS COME DOWN BECAUSE WE HAVE DONE, UH, PUT IN MEASURES IF SURE.
PLEASE, WE HAVE PUT IN MEASURES THAT HAVE, ARE TRYING TO MAKE US COMPETITIVE AS POSSIBLE WITH THE, UH, OUTSIDE ENTITIES.
SO IT'S NOT AS BAD AS IT WAS, BUT I WON'T SAY THAT IT'S LESS SNEAKY BUT NOT COMPETITIVE.
UH, I THINK THIS IS IMPORTANT, UM, AS WE LOOK AROUND AND HEAR, HEAR WHAT, UH, CLIFF JUST TOLD US.
EVEN WHEN YOU PAY WELL, EVEN WHEN YOU PAY WELL, I JUST WENT THROUGH THAT WITH SOMEBODY IN MY OFFICE, SO I'M VERY FAMILIAR WITH THAT.
UM, SO I, I, I THINK IT'S IMPORTANT BECAUSE THIS IS C**K DOES NOT MEAN THAT WE SHOULD NOT MAKE SURE THAT WE DO EVERYTHING WE CAN TO HELP OUR EMPLOYEES AND, UH, WORK, UH, GIVE THEM, UH, ADDITIONAL COMPENSATION, WHAT THEY'VE DONE.
AND I CALL THIS TO THE BOARD AND HOPEFULLY THE BOARD WILL VOTE ON THIS TO THE MAIN BOARD DIRECTORS.
UH, MAYOR, UH, SO I'D LIKE TO ECHO WHAT MR. ALGER SAID.
IT IS, IT'S NOT JUST A PUBLIC SECTOR, IT'S A PRIVATE SECTOR ISSUE AS WELL.
THIS HYPERINFLATION HAS BEEN ABSOLUTELY NUTS.
MY QUESTION IS, UM, WHEN DOES THE CPI COME OUT? UM, IN, UM, UH, I GUESS JUXTAPOSED WITH THE, UH, BUDGET CYCLE? IT JUST DID.
IT JUST DID, IT JUST CAME OUT BEFORE 2024 MM-HMM.
SO IT FITS FAIRLY OUT WELL WITH THAT CURRENT DATA.
JUST CAME OUT FOR SOCIAL SECURITY.
AND THE CPI AND JUST TO CLARIFY, I KNOW YOU HAVE QUESTIONS, CLARIFY, THIS IS NOT APPROVAL, THE CULT OF THAT WILL BE IN THIS NEXT BUDGET, BUT THIS IS JUST, JUST TO RETURN THE POLICY DISCRETION.
DISCRETION OF THE BOARD DISCRETION.
UH, JUDGE, TO SEVERAL YEARS AGO, WE COULD, WE COULD QUIT USING THE CPI ALTOGETHER BECAUSE WE COULDN'T COMPETE WITH IT.
UH, WE, WE COULDN'T, WE COULDN'T GIVE THE RAISES FOR THE, FOR THE RATE OF INFLATION.
AND SO WE COULDN IT WAGE ADJUSTMENTS NOW IN, IN OUR COUNTY, UH, THAT WE NEED TO MAKE IN ORDER TO KEEP THE, EMPLOY THE POSITIONS COMPETITIVE.
AND, UH, THE REASON THAT WE'RE IN THIS JAM IS BECAUSE CUMULATIVELY WE GOT BEHIND IN, UH, RIGHT AFTER COVID AND IN THOSE SUCCEEDING YEARS, WE GOT BEHIND THE, THE CPI AND SO NOW WE'VE TIED, WE'RE TIED TO IT IN OUR POLICY.
AND FRANKLY, I'M IN FAVOR OF CHANGING THE POLICY TO GIVE IT BACK TO THE DISCRETION OF THIS BOARD.
THAT SEEMS TO BE THE ONLY THING THAT MAKES ECONOMIC SENSE TO ME.
SOCIAL SECURITY INCREASE AND CPI ARE TWO DIFFERENT THINGS.
RIGHT? WE KEEP TALKING ABOUT LIKE THE INTERCHANGEABLE OR NOT? NO, NO, THEY'RE DIFFERENT.
WELL, I MEAN, THE SOCIAL SECURITY SECURITY INCREASE IS TIED TO, I THINK IT'S CALLED THE, I FORGOT TO TURN TERMINOLOGY IS
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THE CPI IS CONSTANTLY ROLLING, BUT IT, IT'S TIED, TIED TO THE COST OF LIMIT JUDGE JUDGMENT BY JUDGE, BY THE CONSUMER PRICE INDEX FOR URBAN WAGE EARNERS AND CLERICAL WORKERS, CPIW.BUT IT'S WHAT SOCIAL SECURITY, SOCIAL SECURITY DOESN'T GIVE THAT INCREASE? NO, NO, NO.
THEY'RE GETTING A FRAC, I THINK THEY'RE, THIS YEAR THEY'RE DOING LIKE 1.2 OR 1.2 FRACTION.
MR. RODRIGUEZ, UH, A CLARIFICATION, UH, YOU'RE ASKING, UH, FOR DETECTIVE RECOMMENDED THE BOARD CHANGE THE POLICY, NOT THE BYLAWS, BUT THE CONSISTENT POLICY, THE HR POLICY, CORRECT? MM-HMM.
WELL, UH, I APPRECIATE YOU BRINGING THIS FORWARD BECAUSE I MEAN, THE EMPLOYEES ARE OUR MOST VALUED ASSET AND IT'S INCUMBENT UPON US TO TAKE CARE OF THEM THE BEST THAT WE CAN.
AND IN THESE VERY INFLATIONARY TIMES, I THINK THAT THIS WILL HELP GET, AT LEAST MOVE US TOWARDS THAT.
ARE THERE ANY OTHER QUESTIONS OR EXPLANATION? YES, SIR.
JUDGE, SO, AND Y'ALL MIGHT HAVE MENTIONED THIS AND I DIDN'T, I DIDN'T ABSORB IT, BUT, UH, SO THE POLICY STATES NOW THAT WE'RE TIED TO CPI CONSUMER PRICE INDEX W YES.
SO DID WE, AND BECAUSE I SERVE ON OTHER THINGS AND I CAN'T REMEMBER WHAT I HAD FOR BREAKFAST.
UH, WHAT, WHAT WE GOT OFF HERE.
AND, AND SO DID WE AS A BOARD VOTE ON THAT? DID IT GO ACCORDING TO POLICY? IT NEVER WENT ACROSS POLICY ABOVE 3%.
DID WE WRITE IT INTO POLICY 3% OR WE JUST DIDN'T? NO, WE JUST, WE DIDN'T FOLLOW THEIR OWN POLICY.
AND, AND I'M JUST, I'M JUST TRYING TO REFRESH MYSELF.
AND BASICALLY EXACTLY WHAT JUDGE KELLY SAID, HE LOOKED AT, UH, WHEN THESE BIG NUMBERS, NUMBERS CAME OUT IN 20 22, 23, THERE WAS NO WAY THAT I WAY OUR PROGRAMS COULD SUSTAIN THAT KIND OF A HIT.
MY PREDECESSOR PROPOSED THREE, 3% AND THAT'S, THAT'S WHAT THE BOARD GOTCHA.
GRANTED WITH THE RECOGNITION, THERE WAS JUST NO WAY WE COULD KEEP UP.
AND UH, IT, UH, IT'S VERY UNDERSTANDABLE.
I JUST WANTED TO REFRESH MY MEMORY.
AND I THINK THIS IS OUR OPPORTUNITY TO PUT IT IN THE DISCRETION OF THE BOARD ABSOLUTELY.
TO DO THE RIGHT THING AND TRY TO CATCH UP AS BEST WE CAN.
MM-HMM,
WE'VE GOT A MOTION SECOND AND SECOND, UH, TO FORWARD THIS ITEM TO THE ENTIRE BOARD.
UH, ANY OTHER DISCUSSION? I READY FOR THE VOTE WITH AN AYE IF IN FAVOR.
HEARING NONE OPPOSED, THE MOTION CARRIES.
ALL RIGHT, JOHN, WE'RE GETTING TO YOU.
[8. Discussion and appropriate action upon the recommendation to approve the proposed 2025 AACOG Budget as follows: - Jhoan Torres A. AACOG Organizational Chart B. 2025 Annual Budget Summaries and Spreadsheets 1. 2025 Agency Roll Up 2. 2025 Program and Titan Complex Budgets 3. 2025 Administrative Budgets (Indirect) 4. 2025 General Fund/Unrestricted Budgets]
ITEM EIGHT DISCUSSION AND APPROPRIATE ACTION UPON THE RECOMMENDATION TO APPROVE THE PROPOSED 2025 ACOG BUDGET AS FOLLOWS, MR. JOHN TORRES.GOOD MORNING CHAIR MEMBERS OF THE BOARD.
MY NAME IS
YEAH, I BELIEVE BEFORE YOU TODAY IS THE AGENCY PROPOSED 2025 BUDGET.
UH, HERE WE HAVE A QUICK OVERVIEW OF WHAT WE'RE GONNA GO OVER.
I WON'T READ OVER ALL OF THESE, BUT I'M GONNA GO OVER THE HIGHEST POSSIBLE LEVEL OF THEIR BUDGET AND THEN I'M GONNA WALK THROUGH EACH INDIVIDUAL PROGRAM, ADMINISTRATIVE BUDGET, GENERAL FUND, ALL ALL OF IT.
SO CURRENTLY THE ACOG BUDGET STANDS A SHADE UNDER $90 MILLION FOR 2025.
WE ARE PROPOSING A BUDGET OF $99.1 MILLION.
SO WHAT MAKES UP THAT $99 MILLION, THAT IS GOING TO BE $89.9 MILLION OF THAT IS GOING TO BE PROGRAMMATIC, THAT'S GONNA BE ANYTHING FUNDED BY GRANT AND PROGRAM INCOME.
$5.7 MILLION OF THAT IS GOING TO BE OUR ADMINISTRATIVE AND DIRECT, THAT'S GOING TO BE ALL OF OUR SUPPORT DEPARTMENTS, ACCOUNTING, PROCUREMENT, HUMAN RESOURCES, INFORMATION TECHNOLOGY.
THEN WE HAVE THE GENERAL FUND THAT'S GONNA BE FUNDED BY MEMBERSHIP DUES, EMS, ADMINISTRATIVE FEES.
AND THEN LAST BUT NOT LEAST, WE HAVE THE TITAN COMPLEX.
ONE DISTINCTION I WANNA MAKE IS THAT GENERALLY THAT WOULD BE PART OF THE GENERAL FUND, BUT FOR PRESENTATION PURPOSES WE DO LIKE TO BREAK IT UP.
THAT BUDGET IS LOOKING TO BE ABOUT $2.2 MILLION AND THAT'S ANYTHING FUNDED BY THE PROGRAM, PRO RATA SHARE OF EXPENSES AND THIRD PARTY TENANTS.
HERE WE HAVE THE AGENCY ROLLUP, AND THIS IS THE
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HIGHEST LEVEL SUMMARY OF HOW OUR 2025 BUDGET IS GOING TO IMPACT OUR BOTTOM LINE GOING INTO THE FUTURE, RIGHT? 2026 AND ON.SO STARTING WITH PROGRAM, UH, OUR BEGINNING FUND BALANCE THERE IS $9.3 MILLION.
ONCE YOU TAKE THE REVENUES AND EXPENDITURES INTO ACCOUNT, THE NET REVENUE SURPLUS FOR THE YEAR THAT WE ARE PROJECTING IS $1.6 MILLION OVER IN ADMIN AND DIRECT.
WE ARE PROJECTING A CARRY FORWARD GOING INTO 2025 OF $182,000.
NOW WE NEED TO DRAW THAT DOWN.
SO WE ARE GOING TO UNDER RECOVER OR WE ARE PROJECTING ANOTHER RECOVERY OF $177,000 AND TO DRAW OR TO SPEND THAT CARRY FORWARD AND TAKE ONLY $5,000 GOING INTO 2026 GENERAL FUND, UM, BEGINNING FUND BALANCE THERE IS $23 MILLION.
UM, NOW ONE THING I DO WANT TO POINT OUT IS I KNOW THAT NUMBER DOES APPEAR A LITTLE BIT HIGH AND THAT'S BECAUSE WHEN WE PURCHASE A TITAN COMPLEX, WHEN GOVERNMENTAL ACCOUNTING DICTATES THAT, WHENEVER WE TAKE OUT A BIG LOAN LIKE THAT, WE RECORD ALL THE REVENUE UPFRONT ESSENTIALLY.
AND THEN AS WE PAY DOWN THAT LOAN, WE'RE GONNA SEE THIS BALANCE SLOWLY COME DOWN.
SO THAT'S WHY IT'S A LITTLE BIT HIGHER THAN EXPECTED.
UM, AND TOTAL REVENUES AND EXPENDITURES THERE, THAT DEFICIT IS $119,000.
AND I WILL WALK THROUGH WHAT MAKES UP THAT DEFICIT A LITTLE BIT LATER ON IN THE PRESENTATION.
AND FOR THE TITAN COMPLEX, UH, REVENUES AND EXPENDITURES THAT DEFICIT THERE WOULD BE $219,000 PROJECTED FOR 2025.
OVERALL, THE AGENCY TOTAL, UM, BEGINNING FUND BALANCING CARRY FORWARD IS $32.4 MILLION.
AND WE'RE LOOKING AT A PROJECTED CHANGE IN FUND BALANCE OF $1 MILLION GOING $1.1 MILLION GOING INTO 2026 ENDING FUND BALANCE IN CARRY FORWARD ABOUT $33.5 MILLION.
WE STARTED WITH OUR INDIRECT AT 15%.
THAT'S A 1% INCREASE FROM 2024.
UH, SOME OF YOU MIGHT NOTE THAT THIS IS AT THE MINIMUS RATE.
WE DIDN'T USE THE MINIMUS, THIS IS ACTUALLY CALCULATED.
AS ALWAYS, WE'RE LOOKING AT TREND ANALYSIS AND LOOKING AT HISTORICAL DATA, BUILDING SEASONALITY INTO OUR BUDGETS TO TRY TO GET AS CLOSE AS POSSIBLE.
UH, WE, WHEN PREPARING THE BUDGET, WE LOOK AT EXECUTED CONTRACTS, ANY LONG-TERM FUNDING ANY APPROVED AMENDMENTS BY THE BOARD WHENEVER THEY COME TO YOU OVER THE COURSE OF THE YEAR.
THAT'S ALL BUILT INTO OUR 2025 BUDGET.
AND AS CLIFF JUST MENTIONED IN THAT PRIOR PRESENTATION, WE DID BUDGET THE COST OF LIVING ADJUSTMENT AT 4% INTO THIS BUDGET.
MOVING ON TO THE PROGRAM SUMMARY, UH, BEFORE WE GET GOING THERE, I WANT TO POINT OUT IN THE TOP RIGHT CORNER IT SAYS REFERENCE PAGES IN YOUR PACKET THERE IS A ROLL UP AND SO I'LL TRY TO STAY HIGH LEVEL, BUT IF YOU HAVE ANY MORE QUESTIONS, THE REFERENCE PAGES THERE HAVE ANY MORE DETAIL THAN I COULD EVER HOPE TO GO OVER.
SO IF PROGRAMMATICALLY WE'RE LOOKING AT REVENUES OF $91.5 MILLION EXPENDITURES OF $89.9 MILLION FOR THAT NET REVENUE OR EXPENDITURES OF $1.6 MILLION.
UH, AND THIS IS HEAVILY DRIVEN BY OUR MILITARY AND VETERANS AFFAIRS PROGRAM GOING INTO THE INDIVIDUAL PROGRAMS, WE'RE GONNA START WITH OUR ALAMO REGIONAL TRANSIT PROGRAM.
FROM OUR 2024 FORECAST TO OUR 25 BUDGET, WE'RE LOOKING AT APPROXIMATELY A $5.1 MILLION INCREASE IN THAT BUDGET.
AND THAT IS DUE TO A CAPITAL ASSET GRANT THAT OR A CAPITAL, YEAH.
CAPITAL ASSET GRANT THAT WE RECEIVED TO PURCHASE 32 NEW BUSES, A REF, A REFRESH TO OUR FLEET IN 2025.
SO THAT'S ALL INCLUDED IN NEXT YEAR'S BUDGET FOR ALAMO AGING.
UH, WE ARE FORECASTING A $700,000 DECREASE IN THAT BUDGET AND THAT'S GOING TO BE DUE TO TWO FACTORS.
ONE, WE DON'T HAVE AS MUCH CARRY FORWARD GOING INTO 2025 AS WE DID COMING INTO 2024.
SO THAT'S BUILT INTO THE 25 BUDGET AS WELL AS SOME DECREASE IN NUTRITION FUNDING.
ON THE OTHER SIDE OF THAT, WE HAVE OUR BEAR AGING BUDGET, WHICH ACTUALLY HAS A $1 MILLION INCREASE.
SO SIMILAR STORY WE HAVE ACTUALLY, WE ARE TAKING $1 MILLION IN CARRY FORWARD AND THERE IS A SLIGHT DECREASE IN NUTRITION FUNDING BUILT INTO THAT BUDGET AS WELL.
CAN YOU GO BACK TO THE LAST ONE? SURE, SIR.
SO UT HEALTH IDENTIFY CAPITALIZE ON OPPORTUNITIES TO EXPAND HEALTHCARE SERVICES IN THE RURAL AREAS.
CAN YOU EXPAND ON THAT?
SO WE HAVE A PARTNERSHIP WITH UT HEALTH.
UM, AND I, WE'VE HAD A LOT OF SUCCESS.
WE'VE DONE A NUMBER OF STUDIES IN REGARDS TO
[00:40:01]
THE DENTAL, UH, CONDITION OF MANY RESIDENTS WITHIN THE RURAL AREA.SO MY PLAN IS TO CONTINUE TO COMPROMISE ON THAT UT HEALTH HAS JUST GOTTEN, OR THEY'RE PREPARING TO APPLY FOR ANOTHER GRANT WHERE WE'RE GONNA GO RIGHT BACK OUT INTO THE RURAL AREAS AND WORK ON DENTAL CARE AND PROMOTE DENTAL HYGIENE WITHIN THE RURAL AREA.
AND, AND YOU MIGHT REMEMBER, I, I DON'T KNOW IF IT WAS LAST MONTH OR THE MONTH BEFORE, WE WERE TALKING ABOUT THE MOBILE DENTAL CORRECT BUS THAT GOES OUT AND WE'RE PARTNERED WITH A PRIVATE COMPANY THAT ALSO DENTAL, WHAT WAS IT? ENABLED? DENTAL.
SO THIS IS JUST CAPITALIZING ON THE SUCCESS WE'VE HAD THIS PAST YEAR FOR THAT PARTNERSHIP.
MOVING OVER TO OUR ENVIRONMENTAL CONSERVATION BUDGET, UH, WE'RE LOOKING AT A PRETTY STATIC BUDGET, ABOUT $400,000 BETWEEN 2024 AND 2025.
UH, WE CONTINUE TO RECEIVE FUNDING FROM TCEQ AND JUST GOING OUT IN THE RURAL COMMUNITIES AND PUTTING THAT FUNDING OUT THERE FOR OUR INTELLECTUAL AND DEVELOPMENTAL DISABILITIES PROGRAM.
IT'S ABOUT A $350,000 INCREASE.
THE REASON FOR THAT INCREASE IS TWOFOLD.
UH, WELL ACTUALLY IT'S ALL REALLY PERSONAL RELATED.
SO WITH A NEW DEPARTMENT OF LABOR RULE WITH, UM, REGARDING NON-EXEMPT EMPLOYEES AND HOW WE HAD TO BRING THOSE SALARIES UP, THIS PROGRAM ACTUALLY HAD ENDEAVORED EMPLOYEES THAT WERE IMPACTED BY THAT.
AND THAT IS DIRECTLY REFLECTED IN THIS BUDGET.
AND THE OTHER PART OF THAT INCREASE IS GONNA BE CALLED A MERIT BONUS, THINGS OF THAT NATURE, MILITARY AND VETERANS AFFAIRS.
UH, WE'RE LOOKING AT A $1 MILLION DECREASE IN THAT BUDGET FROM THE 2024 FORECAST TO 2025 BUDGET.
AND THERE WAS NO DECREASE IN FUNDING THERE.
AS MUCH AS THAT WE BUDGETED A LITTLE BIT MORE CONSERVATIVELY.
UH, WE'RE EXPECTING THE NUMBER OF VETERANS THAT WE SERVE TO STAY CONSISTENT AND MAYBE DECREASE A LITTLE BIT.
SO WE DID WORK THAT INTO THE BUDGET.
UM, WE COULD BE SURPRISED, BUT AT THIS TIME WE ARE BUDGETING WITH THAT IN MIND.
AND WHAT IS THAT NUMBER OF VETERANS THAT WE'RE CURRENTLY SERVING? PROBABLY A WILL QUESTION RIGHT NOW.
PROBABLY ABOUT, UM, LAST MONTH IT WAS 6 35.
NOW WE'RE DOWN TO 5 85 JUST BASED OFF THE BB AND FLOW OF THE PROGRAM.
WE HAVE VETERANS THAT, UH, ARE DISENROLLED AS THE VA CHANGES THE, THE SUPPORT CODES AND WE HAVE VETERANS THAT PASS AWAY THE BROKER.
ALRIGHT, THANK, THANK YOU SIR.
MADAM? YES SIR, THAT I, WHEN I WAS REVIEWING THIS, UM, IT SEEMS TO BE THAT IT WOULD BE HELPFUL TO US IN ORDER TO NOT HAVE TO ASK THAT QUESTION IS IF IN THIS BUDGET, IN MOST CASES WHERE THERE'S PROGRAM PATIENTS OR CLIENTS MM-HMM
'CAUSE IT'LL GIVE US A QUICK SNAPSHOT.
I, I'M, WE'RE HOPING THAT STAFF CAN WORK ON THAT AND THE NEXT PRESENTATION PERHAPS WE'LL CAN SEE THAT.
JUST INCLUDE A BULLET POINT HERE.
UM, MOVING TO NATURAL RESOURCES.
SO WE'RE LOOKING AT ABOUT A 200,000 INCREASE IN THAT BUDGET.
SO WE CONTINUE TO HAVE OUR FUNDING AND WE ACTUALLY HAVE AN ADDITIONAL GRANT THAT PM 2.5 FUNDING THAT'S APPROXIMATELY 200,000 AND THAT'S VOTED TO THE 2025 BUDGET.
PUBLIC SAFETY, UH, THAT'S GONNA BE A 3.3 $0.6 MILLION INCREASE TO BUDGET.
AND THAT IS GOING BE THE COPS GRANT THAT WE, THAT WAS RECEIVED RECENTLY.
UH, IT'S A $4.5 MILLION GRANT FOR RADIO TOWER, UH, INFRASTRUCTURE.
SO $3.6 MILLION OF THAT IS IN 2025 AND THAT'S REFLECTED RIGHT THERE.
REGIONAL SERVICES, UM, FROM 2024 TO 2025, THEY'RE MAINTAINING PRETTY CONSISTENT.
WE STILL CONTINUE TO GO OUT TO THE COMMUNITY WITH THE EDA FUNDING, PROVIDE GRANT WRITING CLASSES, ADMINISTERING SERVICES, TRAINING, THINGS OF THAT NATURE.
WHETHER IT FORECASTING FROM 2024 TO 2025 IS APPROXIMATELY A $400,000 INCREASE TO THAT BUDGET.
AS YOU MIGHT RECALL, WHEN I CAME TO THE BOARD BACK IN JULY FOR A BUDGET MODIFICATION, WE DECREASED THE AMOUNT OF WEATHERIZATION BUDGET BY ABOUT $400,000 FOR OUR BIL FUNDING THAT WAS PUSHED DOWN THE ROAD TO 2025.
AND THAT'S GOING TO BE THAT DIFFERENCE RIGHT NOW IN THE BUDGET.
MOVING OVER TO THE ADMINISTRATIVE BUDGETS, UH, WE'RE LOOKING AT A 2024 FORECAST OF $5.4 MILLION OF 2025, BUDGET OF $5.7 MILLION.
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WALK DOWN EACH INDIVIDUAL DEPARTMENT AND KNOW ANY GAPS THAT WE HAVE.STARTING WITH AGENCY MANAGEMENT, THE 2024 FORECAST IS ABOUT $1.1 MILLION, UH, 2025 BUDGET, ABOUT THE SAME.
UH, THAT'S GOING TO MAIN CONTAIN OUR, UH, EXECUTIVE DIRECTOR DEPUTIES AND SOME OF OUR QUALITY ASSURANCE REVIEWER AND THEY'RE ALL BUDGETED IN THERE.
AND THAT BUDGET IS GOING TO MAINTAIN CONSISTENT FROM 24 TO 25 FOR THE BOARD GENERAL BUDGET.
THAT'S A $60,000 DECREASE GOING INTO 2025.
AS YOU MAY RECALL, WE BROUGHT, UH, RFP TO CHANGE OR FOR TO GO OUT FOR BID FOR ORDERS, STARTING WITH OUR 2025 BUDGET.
WE DID SELECT LEDGE, LLC, THEY ARE GONNA START AND THEY ARE APPROXIMATELY $60,000 CHEAPER PER YEAR FOR OUR SINGLE AUDIT.
SO THAT IS GOING TO ACCOUNT FOR THAT DIFFERENCE.
MOVING OVER TO THE ACCOUNTING BUDGET, UM, THAT BUDGET'S GOING TO STAY PRETTY CONSISTENT AS WELL.
IN 2024, WE DID GO ON WITH THE PURCHASE AND IMPLEMENTATION OF THE QUESTA BUDGETING SOFTWARE.
SO THAT WAS BUILT INTO A 2024 BUDGET.
THE INITIATIVE IS GOING TO BRING, UH, EXPENSE MANAGEMENT SOFTWARE REALLY HELP PROGRAMS OUT WITH CONTROLLING THAT ASPECT OF IT.
TRAVEL, UM, JUST CONTINUE TO WORK ON IMPROVING.
SO THAT'S BUILT INTO 2025 PUBLIC RELATIONS.
THAT BUDGET IS GOING UP APPROXIMATELY $160,000.
COUPLE OF DIFFERENT THINGS THAT MAKE THAT UP IS THE, THE REFRESH AND REBRAND OF THE AGENCY IS BUILT INTO THIS BUDGET THAT'S APPROXIMATELY $50,000 AND THE DIFFERENCE FROM THERE, THE OTHER $110,000 CAN BE ATTRIBUTED TO, UH, PERSONNEL.
WE'RE ADDING AN FDE, PUTTING SOME PEOPLE IN HERE THAT WERE IN OTHER DEPARTMENTS, THINGS OF THAT NATURE.
I DO HAVE A QUESTION ON THIS ONE BECAUSE IT IS, IS A HUGE JUMP FROM THE PREVIOUS.
DOES THAT INCLUDE THE UPDATE ON THE WEBSITE? YES, THAT'S, THAT'S ABOUT 50,000 OF THAT.
UH, AND AS YOU WILL RECALL, WE HAVEN'T FILLED THE POSITION THAT WAS VACATED BY MIGUEL SEGURA AND SO THAT HAS REMAINED VACANT.
AND SO THIS IS BUDGETING FOR, UH, A ANOTHER PERSON TO FILL THAT, UH, PUBLIC RELATIONS SPOT.
AND WHETHER WE DO IT OR NOT, IT'S STILL UP FOR DEBATE BUT, OR UP FOR DECISION MAKING, BUT WE BUDGETED FOR IT JUST SO IT'S THERE.
HUMAN RESOURCE, WE'RE LOOKING AT APPROXIMATELY A $75,000 INCREASE.
UM, SO, UH, PERSONNEL CALLED ON MERIT BONUSES, THINGS OF THAT NATURE.
THE OTHER IS, UH, BIG PUSH IN STAFF DEVELOPMENT AND TRAINING.
SO THERE IS AN ADDITIONAL BUDGETING IN THERE TO REALLY CONTINUE TO PUSH THAT INITIATIVE FORWARD.
INFORMATION TECHNOLOGY, THAT BUDGET IS INCREASING APPROXIMATELY $30,000 AND THAT IS, UM, JUST CONSISTENT.
WE HAVE TO CONSISTENTLY KEEP UP WITH THOSE EXPENSES AND MAINTAIN THE INFRASTRUCTURE UP TO DATE PROCUREMENT, UH, $64,000 INCREASE.
AN INCREASE OF A PART-TIME EMPLOYEE, UM, AND SALARY INCREASES OR, YOU KNOW, CALL MERIT, THINGS OF THAT NATURE.
CERTIFICATION TRAINING, THAT'S ALL BUILT INTO THAT BUDGET.
MOVING OVER TO THE GENERAL FUND, UNRESTRICTED BUDGETS, UM, THE 2024 FORECAST FOR REVENUES IS $1.6 MILLION.
UH, EXPENDITURES MAINLY DRIVEN BY THE GENERAL FUND AND AGENCY MANAGEMENT EMS. UM, SO THAT'S INTO THE BUDGET.
ANY, THE 24 FORECAST DOES INCLUDE A TRANSFER IN FROM PROGRAMMATIC FUND BALANCE TO THE GENERAL FUND, WHICH IS WHY IT DIFFERS SO MUCH.
BUT, SO WE MAY HAVE TO DO THAT IN 2025 AS WELL.
IF I MAY, JOHN, JUST TO EXPLAIN TOO, AND CORRECT ME IF I'M WRONG, I'M, THESE GUYS ALWAYS HAVE TO HELP ME WALK THROUGH THESE BUDGET NUMBERS 'CAUSE I'M CAN'T REMEMBER EVERYTHING I USED TO, BUT THE CHANGE IN THAT AGENCY MANAGEMENT FROM 52 TO 145 REPRESENTS WHAT I HAD ANNOUNCED TO Y'ALL.
A COUPLE, UH, AT ONE OF MY, UH, ED REPORTS EITHER LAST MONTH OR MONTH, I BELIEVE IT WAS LAST MONTH, UH, ON HIRING TWO NEW GRANT WRITERS BECAUSE I WANT TO FUND THAT OUT OF THE AGENCY SO THAT WE CAN HOPEFULLY BUILD THAT GRANT WRITING TEAM TO BE BETTER SUPPORT TO THE COMMUNITY.
AND SO WE'LL PAY THAT AT AGENCY BUDGET AND HOPEFULLY IF WE GET SOME GRANTS, UH, COLLECT THAT MONEY, UH, ONCE THE GRANTS ARE AWARDED.
SO, YOU KNOW, I'M, IT'S, IT'S BASICALLY SEED MONEY TO GET THE PROCESS STARTED AND THEN HOPEFULLY IF WE CAN GET SOME GRANT APPLICATIONS IN AND WIN SOME GRANTS, WE'LL RECOVER THE MONEY THROUGH FEES AND, AND ADMINISTRATIVE FEES AND, UH, IMPLEMENTATION FEES OF THE GRANT.
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OKAY.AND MOVING OVER TO A TIME COMPLEX, APPROXIMATELY A HUNDRED THOUSAND DOLLARS INCREASE IN THAT BUDGET GOING TO 2025, WE CONTINUE TO WORK WITH LEASING AGENT TO LEASE OUT THE REMAINING OF THE TOWER AND, UM, MODERNIZE REPAIRS, THINGS OF THAT NATURE AT THIS TIME, STAFF REQUESTS RESPECTFULLY REQUEST APPROVAL TO APPROVE THE 2025 BUDGET AND AN AMOUNT OF $99,138,000 AND YEAH, 1 0 6.
UH, ANY QUESTIONS OR CONCERNS FROM THE BOARD? YES SIR.
4% COLA AND WHAT ABOUT MERIT? COOL.
UH, WE BUDGET MERIT AT A FOUR, 4% COVERAGE AND YOU KNOW, WE WILL SEE WHERE THAT LANDS BECAUSE, BUT YEAH, WE BUDGET THAT 4%, 4% OF YOUR TOTAL SALARY DOLLARS SET ASIDE IS 3% OF YOUR SALARY SET ASIDE FOR MERIT? FOUR AND THREE MM-HMM,
AND THE COST ON THE 4%, DO WE HAVE A NUMBER? IS THAT THE THREE SEVEN, 2000.
HOW MUCH POLIO INCLUDING, SO IF YOU INCLUDE, UH, RELEASE FRINGE IN, IN DIRECT THAT WE COLLECT ON THAT THE TOTAL COST OF PROGRAM MM-HMM.
MS. RODRIGUEZ, JUST THE, I THOUGHT YOU, YOU'RE GONNA INCREASE YOUR PR BUDGET, UH, TO HIRE, HIRE FOLKS.
UM, IT SEEMS TO ME THAT, UH, AND THEN THEN YOU GOT THE GRANT WRITING.
UH, TO WHAT EXTENT WILL THE PR INDIVIDUALS OR, UH, GROUP, UH, WORK TOWARDS EXTERNAL PR VERSUS INTERNAL AMONG MEMBERS AND THE, AND THEIR, AND THEIR ASSOCIATED AGENCIES? SO THE PART OF THE PR TEAM IS OUR OUTREACH TEAM.
AND SO THEY GO OUT AND THEY DO THE ROAD SHOWS AND THEY DO ALL OF THE OUTREACH TO OUR, TO OUR VARIOUS COMMUNITIES AND STAKEHOLDERS.
SO THEY WILL, UM, IF I UNDERSTAND YOUR QUESTION, THEY'LL BE OUT IN THE FIELD PROMOTING AS PART OF THEIR DUTIES, OUR GRANT WRITING AVAILABILITY AND SERVICES SO THAT WE HAVE THAT WORD OUT THERE.
AND I WILL, THAT'S PART OF THE BRAND REFRESH THAT WE CALL IT, WHICH IS REALLY UPDATING THE WEBSITE AND GETTING BETTER OUTREACH MATERIALS OUT THERE.
BECAUSE THE BIGGEST PROBLEM WE HAVE, AND I HEAR THIS FROM EVERYBODY BY THE WAY THAT I DEAL WITH IN THIS, UH, BUSINESS, UH, IS THAT GETTING THE WORD OUT TO OUR MEMBER GOVERNMENTS AND GETTING SOMEBODY TO READ THE EMAILS, RIGHT? YOU'VE GOT, YOU KNOW, WE WERE AT A BREAKFAST WITH THE MAYORS THE OTHER DAY AND, UH, THE MAYOR OF CHINA GROVE, NICE LADY WORKS, NO, NO JOB, I MEAN NO PAY, OKAY? THEY HAVE THREE EMPLOYEES IN CHINA GROVE, TWO VACANCIES IN THAT POSITION.
SO SHE'S WORKING FOR FREE AND DOING THE TWO EMPLOYEES JOB.
SHE DOESN'T HAVE A CHANCE TO READ THE EMAILS THAT COME IN AND SAY THERE'S A GRANT OUT THERE.
SO TRYING TO GET OUT MORE OUTREACH TO THE PEOPLE AND GET A BETTER RESPONSE.
WE SEND EMAILS AND EMAILS TO EVERYBODY, BUT THEY JUST DON'T EVEN GET REPLIED TO.
SO WE'RE TRYING TO FIGURE OUT BETTER WAYS TO GET THE WORD OUT AND STAY IN SUFFICIENT COMMUNICATION AND FOLLOW UP TO WHERE WE CAN HELP OUR, OUR, UH, STAKEHOLDERS, GET THESE GRANTS, GET THE WORD OUT OF THE PROGRAMS THAT ARE AVAILABLE, THE UPCOMING INITIATIVES, THE HEALTHCARE THINGS, AND GET, UM, GET THE WORD OUT AND GET A RESPONSE.
THAT'S WHAT WE'RE WORKING TOWARD.
WOULD THAT INCLUDE, SAY, WORKSHOPS OR SOMETHING IN THE DIFFERENT SECTORS OF THE REGION? WE, WE DO DIFFERENT WORKSHOPS AND AS I SAID, THE ROAD SHOWS WE DO, YOU KNOW, DEPENDING ON WHAT THE PROGRAM IS, WE DO A LOT OF THAT ALREADY AND WE'RE GONNA CONTINUE TO DO THAT.
AND AS I SAY, IF WE CAN'T EXPAND IT.
WELL, UH, ANY OTHER QUESTIONS OR CONCERNS WITH THAT? IS THERE A MOTION PLEASE TO, UM, RECOMMEND THIS, UH, THE PROPOSED BUDGET TO THE, UH, TO THE BOARD MOVE APPROVAL? THANK YOU.
SECOND MOTION AND SECOND BY JUDGE STILL ANY, UH, FURTHER DISCUSSION? I'D JUST LIKE TO SAY THAT I MENTIONED TO, TO THE STAFF THAT, UH, I THINK THEY DO A TERRIFIC JOB IN OF MAKING THE PRESENTATION AND MAKING IT EASY TO FOLLOW, UM, WITH THAT ONE SUGGESTION I HAVE IN TERMS OF US HOW MANY PEOPLE, THE CLIENT OR PATIENT NUMBERS, BUT OTHERWISE I THINK THAT THEY DO A TERRIFIC JOB IN LETTING IT OUT US.
AND I'D LIKE TO ECHO THAT, THAT THIS WAS THE BEST PRESENTATION WE HAD.
I, I WENT THROUGH THE TAPE YESTERDAY AND I WAS LIKE, WE GOTTA WORK ON THIS
WELL, IT WAS NOTICEABLY, UH, MORE IMPROVED.
SO WE DO APPRECIATE YOUR EFFORTS.
[00:55:01]
AYE.ANY OPPOSED? THE MOTION CARRIES.
THANK YOU AGAIN TO YOU AND YOUR DEPARTMENT.
[9. Discussion and appropriate action upon the recommendation to approve an increase of the employee contribution to TCDRS from 6% to 7% and change employee retirement eligibility from 30 years to 20 years of service. - Julio Elizondo]
ITEM NINE, DISCUSSION AND APPROPRIATE ACTION UPON THE RECOMMENDATION TO APPROVE AN INCREASE OF THE EMPLOYEE CONTRIBUTION TO TSD FROM 6% TO 7% IN CHANGE EMPLOYEE RETIREMENT ELIGIBILITY FROM 30 YEARS TO 20 YEARS OF SERVICE.AGAIN, MR. ELIZONDO, THANK YOU.
AND I JUST WANNA ALSO CONGRATULATE JOHN.
I SAW HIM PR PRACTICING IN HIS OFFICE SEVERAL TIMES THROUGHOUT THE DAY YESTERDAY.
SO, UH, SO THE ITEM, THE ITEM BROUGHT TO YOU TODAY IS FOR THE APPROVAL TO INCREASE THE EMPLOYEE CONTRIBUTION TO T-C-D-R-S FROM 6% TO 7%, AS WELL AS CHANGE THE YEARS OF SERVICE FROM 30 TO 20 YEARS, ALL WHILE MAKING A ONE-TIME CONTRIBUTION OF 500,000 TO KEEP OUR PLAN FUNDED RATIO AT 94.8%, WHICH IS ABOUT THE PLAN'S CURRENT FUNDED RATIO AT 95.
YOU DO HAVE AN ATTACHMENT IN YOUR, IN YOUR, UH, AGENDA PACKET THAT HAS THE CURRENT PLAN THAT WE HAVE WITH T-C-D-R-S AS WELL AS IN THE CENTER, A PLAN WHICH HAS, UH, THE 7% INCREASE, UH, BUT AT THE 30 YEARS OF SERVICE.
AND THEN THE PLAN TO THE FAR RIGHT, WHICH IS THE ONE WE'RE RECOMMENDING OF A 7%, INCREASING TO 7%, AS WELL AS, UM, UH, DECREASING THE YEARS OF SERVICE FROM 30 YEARS TO 20 YEARS.
SO ACOG USED TO HAVE A MANDATORY 7% EMPLOYEE CONTRIBUTION, UH, WHICH IS CONSISTENT WITH ME, WITH THEM, WITH MEMBER GOVERNMENTS WITHIN OUR REGION.
UH, 12, 12 OUT OF 13 COUNTIES OF OUR SURROUNDING COUNTIES DO UTILIZE A 7% CONTRIBUTION REQUIREMENT.
SOME YEARS LATER, A DEFERRED COMPENSATION PLAN WAS ADOPTED AND ACOG REDUCED THE EMPLOYEE CONTRIBUTION TO 6% AND MATCHED 50% OF THE DEFERRED COMPENSATION CONTRIBUTION AT SOME POINT, UH, PRIOR TO MY, UH, MY ARRIVAL, ACOG DID STOP MATCHING THIS DEFERRED COMPENSATION.
UH, BUT THE EMPLOYEE CONTRIBUTION REMAINED AT THAT SIX 6%, WHICH OVERALL IMPACTS THE BENEFITS PACKAGE, UH, OF THE, UH, EMPLOYEES.
FOR ACOG, EMPLOYEE RETENTION IS AN IMPORTANT FACTOR IN MAINTAINING OPERATIONS AND STAFF FEELS THESE CHANGES WILL MAKE A SIGNIFICANT IMPACT IN AN EMPLOYEE'S DECISION MAKING.
THERE IS NO FINANCIAL IMPACT TO THE 2025 BUDGET AS ACOG OPERATES ON A TWO YEAR FIXED CARRY FORWARD RATE.
SO THIS WILL AFF AFFECT, AFFECT THE FRINGE RATES BEGINNING IN 2026.
OUR CURRENT ELECTED RATE WILL INCREASE FROM EIGHT 8% TO 9% AS OUTLINED IN THE ATTACHMENT PROVIDED.
STAFF DOES RECOMMEND APPROVAL TO INCREASE THE EMPLOYEE CONTRIBU, UH, T-C-D-R-S CONTRIBUTION FROM SIX TO 7%, CHANGE THE EMPLOYEE RETIREMENT FROM ELIGIBILITY FROM 30 YEARS TO 20 YEARS AND MAKE A ONE-TIME CONTRIBUTION OF 500,000 TO THE, UH, TO KEEP THE PLAN, UH, FUNDED RATIO AT NINE AT AROUND 95%.
UH, I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT YOU ALL MAY HAVE AT THIS TIME.
LISA, I'M ALWAYS LOOKING AT YOU FOR EMPLOYMENT.
I GUESS MY, MY QUESTION IS, WHAT'S THE DRIVER FROM 30 TO 20 YEARS? LIKE, WHAT, WHAT WAS THE RATIONALE? WHAT WERE Y'ALL THINKING, IF I MAY YOU WANT ME TO ANSWER? SURE.
WELL, BARD COUNTY USES A 20, WELL, LET ME START OFF WITH THREE OF OUR 12 COUNTIES ALREADY HAVE A 20 YEAR RETIREMENT ELIGIBILITY.
UH, CITY OF SAN ANTONIO HAS A 20 YEAR SYSTEM.
AND THEN A LOT OF OUR SURROUNDING COMMUNITIES HAVE A 20 YEAR ALIGNING TO THE STANDARD.
WELL, AND THE OTHER, WELL, AND THE OTHER THING IS, TO BE HONEST WITH YOU, QUITE FRANKLY, WHEN WE LOOKED AT THE COST TO DO IT, IT'S ONE 10 OF A PERCENT DIFFERENCE IMPACT ON OUR PLAN ACCORDING TO T-C-D-R-S.
SO IT SEEMS AS A DE MINIMUS IMPACT.
AND, UM, SO POINT, 0.1% DIFFERENCE.
AND SO IT SEEMED LIKE A NO-BRAINER TO TRY IN MY IDEA TO TRY TO RETAIN PEOPLE BECAUSE OF MY EXPERIENCE.
I SPENT MOST OF MY CAREER AT THE COUNTY, WE HAD AN EIGHT YEAR RETIREMENT ELIGIBILITY.
IF YOU GET OVER THAT EIGHT YEARS, THAT LAST 12 DOESN'T SEEM SO HARD TO MAKE IF YOU'RE A 30-YEAR-OLD KID TO THAT LAST 22 THAT LAST, YEAH, THAT LAST 22 YEARS SEEMS WAY FAR.
I KNOW I TALKED TO JUDGE EVANS EARLIER AND HE'S NOT AS, UM, ON BOARD AS I'D LIKE HIM TO BE, SO I SUSPECT HE MIGHT HAVE A COMMENT.
SO, BUT, BUT, UH, UH, SO THAT WAS MY, THAT'S MY RATIONALE IS TO HOPEFULLY RETAIN EMPLOYEES TO WHERE THEY CAN SEE A RETIREMENT AND AN OPPORTUNITY FOR A SECOND CAREER AFTER 20 YEARS OF SERVICE.
SO WHENEVER THEY DID THE NUMBERS, IF WE GIVE RETIREES A COLA THAT HAS A DRASTIC IMPACT ON OUR RATE, DID THEY FACTOR THAT IN? YES.
SO THE LAST CALL WE GAVE, WHAT DID FACTOR IN TO, I'M SORRY.
WHAT DID THEY FACTOR IN? IF YOU, YOU, IF YOU RETIRE AT, YOU CAN RETIRE
[01:00:01]
AT 45.AND WE'RE GONNA PAY YOU FOREVER.
AND IF YOU HAVE COLAS IN THERE, HE'S EXPONENTIAL.
I, I, I JUST CAN'T BELIEVE THAT THAT, AND I'M A PRETTY SIMPLE GUY, BUT TO ME, THE, THE MATH DOESN'T WORK.
IF YOU'RE PAYING SOMEBODY RETIREMENT 20 YEARS AND YOU'VE GOT 10 OR 12 COLAS IN THERE, THAT'S, IT'S GONNA, IT HAS TO AFFECT THAT.
IS THERE AN AGE TO RETIRE AS WELL? IS IT AN AGE AND YEARS OF SERVICE? YEAH, IT'S A 80 YEARS TOTAL AGE, OR 20 YEARS OF SERVICE, PLUS 20 YEARS OF SERVICE AND ACOG.
SO IT'S 65, UH, ELIGIBILITY REGARDLESS OF TIME SERVED, OF COURSE INVESTING.
BUT 65 H PLUS SERVICE EQUALS 80 OR 30 YEARS CURRENTLY, OR 20.
BUT I WILL SAY OUR 80 PLUS 20 IS STILL, UM, IN THE MIDDLE HERE.
MOST OF OUR COUNTIES ARE 75 PLUS 30.
SO WE'RE RIGHT NOW, CURRENTLY WE'RE THE MOST RESTRICTED ONE OF THE BUNCH AT 80 AND 30.
AND TO ANSWER, UH, JUDGE EVANS, I THINK I, I HEAR WHERE YOU'RE GOING ON THE COST OF, AND JULIO EDUCATES ME ON THE PLAN.
AND JOHN, BOTH OF 'EM, I HAVE TO ALWAYS GO BACK TO CC T-C-D-R-S AND ASK QUESTIONS.
BUT WE'RE ONLY ALLOWED TO GIVE COLAS ONCE EVERY, ONCE EVERY THREE YEARS.
WHAT IS IT? WE GAVE ONE LAST YEAR, UH, IN 2023.
BUT YOU'RE ONLY ALLOWED TO GIVE A COLA TO RETIREES.
UH, I MEAN, YOU CAN, YOU CAN GIVE 'EM AT ANY TIME, BUT, UH, YOU GET PUT ON WHAT'S CALLED A REPEAT OFFENDER LIST IF YOU DO IT TWO YEARS CONSECUTIVELY.
SO WE HAVE A LIMIT ON FREQUENCY OF COLA.
IS THERE A CAP ON COLA FOR, UH, IT'S AT THE DISCRETION OF THE BOARD.
I JUST DON'T WANT US TO TURN INTO CALIFORNIA.
I DON'T WANT US TO TURN INTO CALIFORNIA, BUT WE CAN'T FIND THAT.
WELL, AND ONE OF THE THINGS TOO, TO GO TO YOUR POINT AS WELL, AND THAT WE HAVE A CUSHION IN THERE, AND BECAUSE I DEBATE THIS ALL THE TIME ON OUR CONTRIBUTIONS, UM, WE'RE FUNDED AT NEARLY 95.
WELL, WE'RE CURRENTLY FUNDED AT 95%.
IF THE BOARD ADOPTS THIS RECOMMENDATION TO INCREASE FROM SIX TO SEVEN AND GO TO 20, WE'LL BE AT 94.8%.
THE AVERAGE, UH, FUNDING, UH, IN, UH, UH, THE PLAN FROM T-D-C-R-S FROM OTHER MEMBER GOVERNMENTS IS AS LOW AS 89%.
SO WE'RE, WE'RE HEALTH, YOU KNOW, WE'RE WELL FUNDED.
YOU'RE FUNDED AT A HEALTHY LEVEL.
AND IF WE DID TAKE A HIT, IT WOULD, WE MIGHT BE ADJUSTING IT.
BUT EVEN IF WE WENT DOWN TO, YOU KNOW, LET'S JUST SAY 92% WE'RE STILL WELL WITHIN TDC S'S GUIDELINES FOR WHAT? THEY DIDN'T ACCEPT THAT ASSUME THE 500,000 CONTRIBUTION.
I'M SORRY, THAT ASSUMES THAT 500,000 CORRECT.
SO, BUT WE HAVE HERE THE, IT'S 60, NOT 65.
IT SAYS EIGHT 60, SO IT WOULD BE 60 IN 20 YEARS.
SO I THINK MAKING THE EIGHT IS WHAT YOU'RE SAYING, CORRECT, YES.
EIGHT PLUS SERVICE, NOT 65, BUT, BUT YOU SAID 65, YOU SAID PREVIOUSLY 65.
IF YOU'RE 65, YOU'RE ELIGIBLE FOR RETIREMENT.
UH, AND THEN AGE PLUS SERVICE EQUALS 80 OR 30 YEARS OF SERVICE.
BUT GOING BACK TO THE 80, 20 YEARS, 20 YEARS AND 60 WOULD AND 60 WOULD, YOUR 80 WOULD GET YOU YOUR 80.
AND ONE OF THE THINGS I WOULD LIKE TO ADD TOO, JUST TO GET YOU ON THE, THE ISSUE OF THE 500,000.
SO WHILE WE WERE WORKING THROUGH THIS, UM, WE ARE OVER RECOVERED IN OUR FRINGE POOL BECAUSE OF THE WAY OUR COGNIZANT AGENCY, UH, DETERMINE WHAT OUR, OUR RATE WOULD BE, UH, FOR THE BUDGET.
SO WE HAVE APPROXIMATELY $600,000 OVER, WELL, IT'S AN, IT'S PROJECTED BY YEARS END TO BE $600,000 FOR OUR FRINGE POOL.
IF WE DON'T SPEND THIS MONEY, THEN THAT AFFECTS OUR ABILITY TO NEGOTIATE THE RATE AND THE FOLLOWING, UH, NEGOTIATION PERIOD.
AND THEY WILL LOWER OUR RATE, WHICH THEN PUTS US AT A DEFICIT.
THEN WE'LL HAVE TO NEGOTIATE IT AND THEN TO A HIGHER RATE.
AND SO FOR THE STABILITY OF THE PROGRAMS, IT'S BEST TO JUST BE PRETTY NEUTRAL.
AND SO WE WANT TO SPEND THIS $500,000 OVER RECOVERY AND IT'S ALLOWABLE EXPENSE.
WE'VE CHECKED WITH EVERYBODY, UH, TO KEEP US FUNDED, MAKE THIS CHANGE.
YOU USE IT TO RATE, YOU CAN REALLOCATE IT FOR THIS PURPOSE.
WHEN WAS THE LAST TIME YOU HAD AN ACTUARIAL STUDY FOR YOUR
AND YOUR ACTUARIAL SUPPORTS CHANGE YOU HOPE WITH T-C-R-D-S? YOU DON'T KNOW
JUDGE EVANS REMAINS SKEPTICAL.
WELL THAT'S, WELL, I APPRECIATE HIS, UH, HISTORY.
SO THE 500,000 HAS CAN'T BE USED FOR PROGRAMS.
[01:05:01]
NO.IT'S COMING OUT OUR, IT'S COMING OUT OF OUR FRINGE, UH, COST.
AND YOU CAN REALLOCATE IT TO A DIFFERENT BENEFIT.
BUT YOU CAN'T GO DIVERT IT TO THAT IS CORRECT.
JUDGE EVANS OUGHT TO BE, HE OUGHT TO BE ELIGIBLE FOR THIS.
'CAUSE HE'S BEEN AT C**K THAN ANYBODY.
20, 30, 20 YEARS, I DON'T KNOW.
BUT AFTER THE YEARS OF SERVICE
YOU WENT WELL, PEN OF THEM HAS SWORN ON THIS.
I MEAN, WE'VE GOT PEOPLE IN OUR COMPANY THAT HAVE BEEN THERE 40 PLUS YEARS, UH, AND OTHER COMPANIES HAVE HAVE THE SAME THING, BUT FINDING PEOPLE TODAY TRYING TO KEEP THEM THAT, UH, THAT IS REALLY TOUGH.
AS A RESULT OF IT, UH, WHAT USED TO BE THE NORM OF 30 YEARS OR 40 YEARS OR WHATEVER, UH, IS NO LONGER THAT.
SO IF YOU GET SOMEBODY THAT CAN STAY 20 YEARS, AND I AGREE.
JUDGE, IF IT'S EXACTLY WHAT YOU'RE SAYING, I MEAN, I KNOW A STATE AGENCY THAT WHEN A PARTICULAR STATE AGENCY, WHEN THEIR GROUP HITS 20 YEARS, THEY'RE OUT THERE.
AND THEN THERE'S ANOTHER GROUP THAT I'M INVOLVED WITH THAT PROVIDES SCHOLARSHIPS FOR THEIR KIDS WHILE THEY ARE THERE.
AND SO AS A RESULT OF IT, THEY GET THEIR 20 YEARS, THEY GET THEIR SCHOLARSHIPS FOR THEIR KIDS.
IT'S NOT FULLY PAID, BUT IT'S A PARTIAL SCHOLARSHIP, AND THEY'RE OUT THE DOOR LOOKING FOR SOMETHING ELSE.
AND FOR WHAT IT'S WORTH THOUGH, I WILL SAY THIS, AND THIS IS JUST THE MENTALITY THAT ONLY EXISTED IN MY LITTLE PART OF BEAR COUNTY.
AND SO MAYBE IT'S DIFFERENT FROM OTHERS, BUT MY EXPERIENCE WAS WHEN I WAS IN THE DA'S OFFICE, LIKE I SAY, IF YOU COULD GET THAT PERSON TO STAY FOUR YEARS, THEN THEY'D STAY FOUR MORE YEARS FOR THE, FOR THE VESTING.
IF YOU GET THE EIGHT YEARS, THEN THEY COULD SEE THAT 20 YEAR RETIREMENT WINDOW.
THEN ONCE THEY HIT THAT 20 AND THEY KNEW THEY WERE ELIGIBLE FOR RETIREMENT, THEY START RUNNING THE NUMBERS ON T-D-C-R-S.
AND NOBODY'S A BIGGER FAN OF TDCD, T-D-C-D-R-S THAN I AM.
AND I INTEND TO HAVE A WHOLE SEMINAR ON THIS TO THE EMPLOYEES.
BUT ONCE THEY START RUNNING THOSE NUMBERS AND SEE THAT IF YOU DO 30 YEARS OR 33, IT ACTUALLY IS ALMOST A TOTAL REPLACEMENT OF YOUR SALARY.
AND SO MY POINT IS, ONCE THEY SEE THAT, IF THEY GET THOSE MILESTONES, YOU CAN KEEP 'EM.
NOW, DID PEOPLE LEAVE AT 20? YOU BET.
BUT AT LEAST, YOU KNOW, I SEE IT AS ALLURE TO KEEP GOOD PEOPLE.
UM, I THINK JUDGE EVANS DOESN'T SEE IT THAT WAY, BUT I HOPE HE DOES.
UH, BUT AT LEAST THAT WAS THE MENTALITY THAT OF THE PEOPLE THAT I WORKED WITH, I CAN REMEMBER PEOPLE HITTING 20 YEARS DANCING DOWN THE HALLWAY, YOU KNOW, AT EIGHT YEARS, THEY SAID VESTED, AND THEY WERE HAPPY.
AND SO THOSE WERE MILESTONES THAT WERE ACHIEVABLE.
WELL, YOU'RE GUARANTEED 7% ON YOUR MONEY.
JUDGE KELLY, I FEEL PRETTY STRONGLY ABOUT THIS.
UM, AND I HAVE THE UTMOST RESPECT FOR JUDGE EVANS.
HE, HE WAS MY MENTOR AT NEW JUDGE SCHOOL.
UH, AND PRETTY MUCH WHAT YOU SAY IS PRETTY MUCH GOLD.
BUT I DON'T LIKE THE IDEA OF ACOG BEING THE MOST RESTRICTIVE OF THE AREA GOVERNMENTS.
WE OUGHT TO BE PROUD OF WHO WE ARE.
UM, AND, UH, TO CATCH US UP TO EVEN BEING IN, IN, IN THE MIDDLE, UH, SEEMS TO BE WHAT WE'RE TRYING TO DO HERE.
AND I ALSO APPRECIATE THAT WHEN YOU START TALKING ABOUT THINGS LIKE THIS, UH, IT STAYS AT THE STAFF LEVEL A LONG TIME BEFORE IT PERCOLATES UP TO US.
AND THEN ONCE IT GETS TO THE EXECUTIVE COMMITTEE, IT STAYS HERE A WHILE BEFORE IT PERCOLATES ON UP TO THE FULL BOARD.
AND REGARDLESS OF WHAT THE ULTIMATE DECISION MAY BE HERE, UH, I DEFINITELY BELIEVE THAT THIS SHOULD BE CONSIDERED BY THE FULL BOARD.
AND, AND THE, I I WANT THE STAFF TO KNOW THAT WE ARE TRYING
[01:10:01]
TO YES.UH, DO WHAT'S FAIR AND RIGHT FOR YOU.
UH, AND SO I'M GONNA MAKE A MOTION THAT WE RECOMMEND IT TO THE BOARD AND HAVE THIS DISCUSSION NEXT WEEK.
WE HAVE A MOTION AND A SECOND TO, UH, CARRY ITEM NINE TO THE FULL BOARD.
ANY OTHER DISCUSSION? SO, SO THE RECORD OBJECTION.
NEED TO GO TO THE BATHROOM RIGHT NOW WHILE WE VOTE.
PLAINTIFF'S BEEN DISAPPOINTED BEFORE.
DID WE LOSE JUDGE TILL? IS HE COMING BACK? I DON'T KNOW.
JUST, I WAS LOOKING AT THE NUMBERS.
SO WE'RE GOING TO TAKE IT TO THE FULL BOARD FOR DISCUSSION AS PROPOSED.
DROP IT DOWN TO 75 INSTEAD OF 80.
YOU PAY THE 500,000, BUT MAKE IT 30 YEARS.
I'LL VOTE TO TAKE IT TO THE FULL BOARD, BUT I WON'T VOTE FOR THIS
THAT'S, THAT'S A, THAT'S A STEP FORWARD TAKE.
WE'LL TAKE WE'LL, WE'LL TAKE IT.
ANYONE ELSE IN THAT CASE? ALL IN FAVOR? SAY YES.
SO THE MOTION DOES CARRY TO, UH, TAKE THIS TO THE FULL BOARD.
[10. Discussion and appropriate action upon the recommendation to approve AACOG's 2025 Public Investment Policy. - Julio Elizondo]
THIS TO ITEM 10, WHICH IS DISCUSSION AND APPROPRIATE ACTION UPON THE RECOMMENDATION TO APPROVE THE ACCO 2025 PUBLIC INVESTMENT POLICY.SO, UH, THE PUBLIC FUNDS INVESTMENT ACT REQUIRE, DOES REQUIRE THAT WE BRING AN UPDATE TO OUR BOARD OF DIRECTORS, UH, OVER OUR INVESTMENT POLICY.
UH, THERE, AS OF THIS PAST YEAR, THERE WERE NO UPDATES TO THE INVESTMENT, UH, ACT.
THERE HAVE BEEN NONE SINCE 2019.
UH, THEREFORE, OUR POLICY WILL REMAIN AS IS STAFF DOES RECOMMEND THE APPROVAL OF THE 25 PUBLIC FUNDS INVESTMENT POLICY, WHICH WAS LAST APPROVED AT THE BOARD, UH, MEETING IN OCTOBER OF 23.
AGAIN, I'D BE HAPPY TO ANSWER ANY QUESTIONS OVER THIS, UH, AGENDA ITEM? YES, SIR.
UH, ARE THERE ANY DISCUSSION? WE HAVE A MOTION.
IS THERE A SECOND? SECOND BY MAYOR SCHROEDER.
UH, SO THAT WILL ANY OF THE DISCUSSION READY FOR THE VOTE? WITH AYE? AYE, UH, TO MOVE THIS TO THE FULL BOARD AND ANY AGAINST, NO MOTION CARRIES.
SO WE'LL TAKE THIS ITEM ONTO THE BOARD.
[11. Discussion and appropriate action on the recommendation to approve the Internal Audit update on completed 2024 activities and projects. – Jaye Wells]
11, DISCUSSION APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE THE INTERNAL AUDIT UPDATE ON COMPLETED 2024 ACTIVITIES AND PROJECTS.UM, MR. DAY WELLS, HOW'S YOUR FAMILY? THEY'RE DOING GOOD.
GOOD MORNING, MAYOR DENNIS AND MEMBERS OF THE EXECUTIVE COMMITTEE.
MY NAME IS JAY WELLS AND I'M YOUR INTERNAL AUDITOR.
THE INTERNAL AUDIT FUNCTION PROVIDES ASSURANCE TO ACOG BY REVIEWING ITS OPERATIONAL ACTIVITIES AND INTERNAL CONTROLS.
AND I'M HERE TO PROVIDE YOU AN OVERVIEW OF THE STATUS OF THE PROGRAM SO FAR THIS YEAR.
SINCE I LAST PRESENTED TO YOU, I HAVE COMPLETED AUDITS OVER THE ALAMO AREA REGIONAL LAW ENFORCEMENT ACADEMY AND AUDIT OVER PROCUREMENT DEPARTMENT PERFORMED SUB SUB-RECIPIENT MONITORING, AND AN AUDIT OVER WEATHERIZATION.
AS YOU CAN SEE, THERE ARE TWO AUDITS UNDERWAY AND A THIRD PLANNED FOR THE REMAINDER OF THIS YEAR.
AND I DON'T ANTICIPATE ANY DELAYS IN THEIR COMPLETION.
IN ADDITION TO THE AUDITS AND REVIEWS I'VE COMPLETED, I HAVE TRAINED ATTENDED TRAINING FROM THE COMMITTEE OF COMMITTEE OF SPONSORING ORGANIZATIONS OR COSO FOR INTERNAL CONTROL FRAMEWORK.
AND I'M IN THE PROCESS OF DEVELOPING ADDITIONAL TESTING FOR THAT.
IN ADDITION, I HAVE ATTENDED THE AGA'S PROFESSIONAL DEVELOPMENT TRAINING IN DENVER WITH JULIO.
AFTER WE RECEIVE SCHOLARSHIPS FROM THE A GA, I'VE ALSO HELPED TO FACILITATE THE ANNUAL PHYSICAL INVENTORY, AND LASTLY, HAVE SIGNED AC COG UP TO BE A MEMBER ORGANIZATION OF THE ASSOCIATION OF CERTIFIED FRAUD EXAMINERS FRAUD WEEK, AND WILL BE BE PROVIDING TRAININGS AND INFORMATION RELATED TO FIGHTING FRAUD TO THE STAFF THE WEEK OF NOVEMBER 17TH.
I'LL NOW PROVIDE YOU A HIGH LEVEL SUMMARY OF THE FINDINGS, OBSERVATIONS, AND RECOMMENDATIONS DISCOVERED DURING MY REVIEWS OF THE VARIOUS PROGRAMS. THE FULL REPORTS ARE ATTACHED IN YOUR PACKETS FOR YOUR REVIEW.
FOR THE ALAMO AREA REGIONAL LAW ENFORCEMENT ACADEMY AUDIT, I HAD ONE OBSERVATION, WHICH WAS THAT PROCEDURES NEEDED TO BE DEVELOPED REGARDING THE MANAGEMENT OF WEAPONRY AND AMMUNITION.
[01:15:01]
PLAN FOR THIS WAS THAT ACADEMY STAFF WOULD DEVELOP THAT SOP AND MAINTAIN IT ANNUALLY.THE REQUESTED PROCEDURE HAS BEEN DEVELOPED AS OF THIS TIME, THERE WERE NO ISSUES NOTED DURING THE SUB-RECIPIENT REVIEW FOR PROCUREMENT AUDIT.
I HAD ONE OBSERVATION, WHICH WAS THAT TWO PROCEDURE DOCUMENTS.
THE IT MANAGEMENT AND MAIL HANDLING NEEDED TO BE UPDATED, AND ONE PROCEDURE NEEDED TO BE DEVELOPED REGARDING THE MANAGEMENT OF RECEIVED GOODS.
THE ACTION PLAN FOR THIS IS THAT PROCUREMENT STAFF WOULD UPDATE AND DEVELOP THE SOPS AND MAINTAIN THEM ANNUALLY.
AGAIN, THESE PROCEDURES HAVE BEEN UP DEVELOPED AND UPDATED FOR THE AUDIT OVER WEATHERIZATION.
I HAD ONE FINDING IN ONE OBSERVATION.
THE FINDING IS DUE TO THE PROGRAM HAVING HISTORICALLY PROVIDED THE REQUIRED DOCUMENTATION REGARDING TENANT'S RIGHTS AND PROTECTIONS SOLELY TO LANDLORDS OMITTING DIRECT COMMUNICATION TO TENANTS.
THIS ISSUE HAS BEEN RESOLVED BY THE WEATHERIZATION TEAM DEVELOPING AN INFORMATION PAGE, DETAILING THE PROTECTIONS AS WELL AS THE COMPLAINT PROCEDURES.
AND THE DOCUMENT HAS BEEN SENT TO PREVIOUS TENANT HOMES, WEATHERIZED BY US, AND WILL BE PROVIDED TO FUTURE TENANTS TO ENSURE THAT COMPLIANCE WITH STATE AND FEDERAL REGULATIONS.
THE OBSERVATION WAS THAT THE PROCEDURES NEEDED TO BE DEVELOPED REGARDING WEATHERIZATION PROCESSES.
THE ACTION PLAN FOR THAT WAS THAT WEATHERIZATION STA WOULD STAFF WOULD DEVELOP AN SOP AND MAINTAIN IT ANNUALLY.
AGAIN, THIS PROCEDURE HAS BEEN DEVELOPED.
SO EVERY OTHER YEAR, QUALITY ASSURANCE AND INTRO AUDIT PERFORM A RISK ASSESSMENT OF THE VARIOUS ACOG PROGRAMS TO DEVELOP A SCHEDULE FOR THE FOLLOWING TWO YEARS.
THE RISK ASSESSMENTS WEIGH THE PROGRAMS ON 14 DIFFERENT FACTORS, SUCH AS RESULTS FROM PRIOR AUDITS FROM MYSELF, OTHER AGENCIES, AND THE AMOUNT OF FUNDING EXPENDED, AS WELL AS THE PROGRAM'S COMPLEXITY, THE LENGTH OF TENURE OF MANAGEMENT TO NAME, BUT A FEW OF THOSE DIFFERENT FACTORS.
BRENDA AND I COMPLETED THE ASSESSMENT LAST YEAR, AND BASED ON THE RESULTS OF THAT ASSESSMENT, WE PROPOSED THE FOLLOWING SCHEDULE FOR 2025.
THE HIGH, JUST AS A A NOTICE, THE HIGH RISK DOES NOT NECESSARILY MEAN THAT ANYTHING IS WRONG.
SO IN SUMMARY, I HAVE NOT NOTED ANY SIGNIFICANT ACCOUNTING OR PROGRAMMATIC ISSUES THAT I'M AWARE THAT SHOULD BE DISCLOSED AT THIS TIME.
DO YOU HAVE ANY QUESTIONS? CAN YOU GO BACK TO THE LAST SLIDE? SCHEDULE BALANCER.
UH, MR. RODRIGUEZ, UH, WHEN THERE'S A MAJOR PROPOSAL DEVELOPED FOR SUBMISSION, DO YOU REVIEW THAT FOR ANY RISK POTENTIAL WITH RESPECT TO THAT PROPOSAL? UM, I'M NOT ON THE, I'M NOT ON THE VETTING COMMITTEE.
WHAT'S THAT? I'M NOT ON THE VETTING COMMITTEE, UH, FOR PROPOSALS.
IS THAT WHAT YOU'RE REFERRING TO? RIGHT.
IN OTHER WORDS, IF PARTICULARLY WITH NEW PROGRAMS AND GIVEN YOUR EXPERIENCE IN YOUR ROLE, IS IT, IT'D BE BETTER TO PREVENT THAN TO FIND IT LATER? THE PROBLEM.
SO I WOULD JUST, JUST THINKING OF PERHAPS IT WOULD BE HELPFUL THAT IF YOU WOULD REVIEW THOSE POTENTIAL RISKS THAT COULD BE AVOID.
UM, WE CAN TAKE THAT INTO CONSIDERATION.
I WAS GONNA SAY, WE DO A, WE HAVE A GRANT VETTING COMMITTEE THAT GOES THROUGH AND LOOKS THROUGH ALL THE DEPARTMENTS, SEE IF THE GRANT IS, IS DOABLE, AND, AND WITHIN OUR, OUR SCOPE IN OUR CAPACITY.
UM, BUT FOR THE INTERNAL AUDIT PORTION OF IT, I DON'T SEE A PROBLEM WITH HAVING JAY AS BEING A PART OF IT.
BUT AT THAT POINT, WE DON'T REALLY HAVE, YOU KNOW, WE HAVE TO APPLY FOR THE GRANT AND GET IT UNDERSTAND.
AND SO WE DON'T, AND WE DON'T HAVE THE STRUCTURE OF THAT PROGRAM IN PLACE AT THE TIME THAT WE DO THE GRANT VETTING.
SO, YOU KNOW, I, THE INPUT THERE WOULD BE JUST TO MAKE SURE WE'RE FOLLOWING OUR INTERNAL PROCEDURES, BUT, BUT WE DON'T REALLY HAVE A STRUCTURE FOR THE GRANT UNTIL WE GET THE ACTUAL AWARD.
SO I, I WOULD JUST AS A DISCRETIONARY THING, BUT IT'S, IT'S, IT'S, IT'S NOT MAJOR IN MAJOR GRANTS.
CERTAINLY DOESN'T HURT TO HAVE HIM THERE.
I'M NORMALLY INFORMED OF THE GRANTS THAT WE, WE ARE APPLYING FOR.
BUT, BUT THE VETTING IS REALLY WHETHER EACH PROGRAM OR PROCUREMENT, FOR INSTANCE, ADMIN AND SO ON, CAN AND CAN DO THEIR PART PART AND
[01:20:01]
MAKE SURE THAT WE CAN GET ALL THE THINGS NECESSARY TO IMPLEMENT THE GRANT.IF AN AWARD IS MADE, FOR EXAMPLE, OF WHAT OCCURS TO ME, AND, AND OF COURSE THIS IS TOTALLY DISCRETIONARY, BUT THAT IF, IF HE IDENTIFIES THAT THERE OUGHT TO BE CERTAIN PROCEDURES THAT CURRENTLY DON'T EXIST, THAT MAYBE HIT IT AT THAT POINT, SUGGESTING THAT, THAT, THAT THEY BE READY TO DO THAT AS SOON AS THE GRANT IS AWARDED.
I THINK WE CAN, I THINK IT'S A GOOD IDEA.
WE CAN MAKE THAT CHANGE AND INCLUDE YOU IN THE VETTING PROCESS OR PULLING THE THREAD FARTHER.
IS THIS A GRANT I WANNA GO AFTER? IF IT POSES SOME RISK MM-HMM.
I THINK THAT MAKES SENSE TO ME TOO.
WE'LL JUST INCLUDE, INCLUDE, UH, YOU AND A, A NEW COMMITTEE.
UH, ANY OTHER DISCUSSION ON THE ITEM BEFORE WE, UH, ASK FOR A MOTION TO MOVE THIS FORWARD? MOVE APPROVAL.
A MOTION AND A SECOND TO TAKE THIS ITEM 11 TO THE BOARD.
UM, ALL IN FAVOR WITH, UH, AYE.
ANY OPPOSED? THE AYES HAVE IT.
[12. Discussion and appropriate action on the recommendation to approve the Quality Assurance update. - Bryn Herrera]
12, DISCUSSION, APPROPRIATE ACTION ON THE RECOMMENDATION TO APPROVE THE QUALITY ASSURANCE UPDATE.MORNING, UH, MAYOR DENNIS KELLY MEMBERS COMMITTEE.
I'M YOUR INFORMATION AND PRIVACY OFFICER.
SO, AS A, JUST A VERY BRIEF REFRESHER, THE INTENT OF ACOG QA IS TO ENSURE THAT OUR PROGRAMS MEET AND EXCEED THEIR COMPLIANCE STANDARDS, UM, ASSIST OUR DEPARTMENTS IN PREPARING FOR EXTERNAL MONITORS AND AUDITS, IDENTIFYING WEAKNESSES IN PROCESSES, AND OFFERING RECOMMENDATIONS WITH THE GOAL OF CONTINUOUS QUALITY IMPROVEMENT.
MY GOAL, OR MY ROLE AS INFORMATION AND PRIVACY OFFICER, IS TO REVIEW THE PHYSICAL, TECHNICAL AND ADMINISTRATIVE SAFEGUARDS, WHICH PREVENT THE UNAUTHORIZED DISCLOSURE OF SENSITIVE INFORMATION, BOTH PHYSICAL AND DIGITAL.
AND ADDITIONALLY TO COORDINATE, MANAGE, AND IMPLEMENT IT PROJECTS AND SERVICES WITH OUR CONTRACTED VENDOR.
I ALSO AIM TO PROMOTE COMPLIANCE WITH PRIVACY AND CYBERSECURITY LAWS VIA THE IMPLEMENTATION OF INDUSTRY STANDARDS AND BEST PRACTICES, INCIDENT INVESTIGATION AND IDENTIFICATION OF, UH, NETWORK AND SYSTEM VULNERABILITIES.
ON THE QA SIDE, UH, WE'RE ON TRACK TO COMPLETE ALL THE AREAS IN THE APPROVED 2024 SCHEDULE BY THE END OF THE YEAR.
AND I DON'T ANTICIPATE ANY ISSUES IN COMPLETING OR REMAINING REVIEWS BY THE START OF 2025.
AND BASED ON THE REVIEW ACTIVITIES WHICH HAVE COMPLETED, WHICH HAVE BEEN COMPLETED SO FAR, I DON'T FEEL THAT THERE ARE ANY SIGNIFICANT BREACHES OF COMPLIANCE OR CONDUCT WHICH WARRANT REPORTING OR BRINGING TO YOU TODAY.
UM, IT'S BEEN A BUSY YEAR ON THE IT FRONT, UH, WITH SEVERAL SIGNIFICANT PROJECTS AND INITIATIVES BOTH COMPLETED AND UNDERWAY.
THIS SLIDE GIVES A BRIEF SUMMARY OF SOME OF THE AREAS IT HAS BEEN ACTIVE IN.
UH, THE AGENCY HAS MADE SIGNIFICANT PROGRESS IN REGARDS TO LIFECYCLE MANAGEMENT AND DEVICE REFRESH PROCESSES, AND CONTINUES TO MAKE ENHANCEMENTS AND UPGRADES TO NETWORK HARDWARE.
ANOTHER MAJOR PROJECT THIS YEAR HAS BEEN THIS E SOLICITATION OF BIDS FROM DIFFERENT IT MANAGED SERVICE PROVIDERS IN AN ATTEMPT TO ENSURE THAT THE SERVICES THAT ACOG RECEIVES FROM ITS, IT VENDOR REMAINED COMPETITIVE IN TERMS OF QUALITY AND PRICE WITHIN THE, WITHIN THE INDUSTRY.
THE RESULT OF THAT SOLICITATION AND SUBSEQUENT RECOMMENDATION IS A DIFFERENT AGENDA ITEM, WHICH I'LL BE BRINGING TO THE BOARD NEXT WEEK FOR 2025.
WE'RE PLANNING TO CONTINUE TO ENHANCE AND MAKE REFINEMENTS TO THE AGENCY'S BUSINESS CONTINUITY PLAN AND DISASTER RECOVERY PROCESSES AS WE HAVE LEARNED TO ANTICIPATE THE UNEXPECTED AND INCORPORATE LESSONS LEARNED FROM A FEW DIFFERENT EVENTS OVER THE PAST COUPLE YEARS.
ONE EXCITING THING TO NOTE IS THAT WE'VE ALSO LAID THE GROUNDWORK FOR THE AGENCY'S TRANSITION FROM A.COM TO A.GOV DOMAIN.
THIS WORK WILL CONTINUE IN 2025, AND WE ARE WORKING IN TANDEM WITH OUR IT PROVIDER, PUBLIC AFFAIRS AND OUR PROGRAMS TO PLAN FOR THIS TRANSITION.
THIS SLIDE GIVES A VERY ABBREVIATED OVERVIEW OF SOME OF THE AREAS THE INFORMATION AND PRIVACY OFFICE HAS BEEN INVOLVED IN WITH REGARD TO COMPLIANCE, SECURITY, AND PRIVACY.
UH, WE CONTINUE TO ENHANCE OUR PRACTICES AROUND IDENT IDENTITY MANAGEMENT AND VERIFICATION.
THIS HAS BEEN A BIT OF AN EXERCISE IN WHACK-A-MOLE AS PHISHING AND OTHER SOCIAL ENGINEERING ATTEMPTS ARE BECOMING INCREASINGLY ELABORATE AND CREATIVE.
AND THE INTENT IN THIS AREA IS SIMPLY TO TRY AND PREVENT THE AGENCY FROM BEING AN EASY TARGET OF OPPORTUNITY.
INTERNALLY, WE'RE ITERATING AND PROVIDING GUIDANCE TO STAFF STAFF REGARDING HOW, REGARDING THE NOW PROLIFIC USE OF AI.
WE ARE WORKING TO FIND THE CORRECT BALANCE BETWEEN, UH, IMPLEMENTING FEATURES WHICH ENHANCE THE QUALITY OF LIFE FOR OUR STAFF, AND PREVENTING UNAUTHORIZED DATA DISCLOSURE AND COPYRIGHT INFRINGEMENT.
IN REGARD TO THE CONFERENCES LISTED HERE, YOU'VE HEARD ME PREACH ABOUT
[01:25:01]
IT BEFORE, BUT THIS IS JUST A VERY BRIEF REMINDER THAT IF YOU'RE NOT ALREADY, I ENCOURAGE YOUR RESPECTIVE GOVERNMENTS AND COMMUNITIES TO JOIN THE MULTI-STATE INFORMATION SHARING AND ANALYSIS CENTER, OR MS. ISAC AND TAKE ADVANTAGE OF A HOST OF FREE RESOURCES AIMED AT ADDRESSING THE CHALLENGES OF CYBERSECURITY FOR STATE AND LOCAL GOVERNMENTS.SO IN SOME RECENT ACTIVITIES, CONTINUE TO SUPPORT ENHANCEMENTS TO ACOG'S PRIVACY COMPLIANCE, AND SECURITY ENVIRONMENTS.
I FEEL THAT WE ARE POSITIONED WELL AS AN ORGANIZATION TO PROACTIVELY RECOGNIZE EMERGING TECHNOLOGIES THREATS AND REGULATORY CHANGES, AND MAKE STRATEGIC DECISIONS IN THESE AREAS.
AS ALWAYS, I CONTINUE TO MAINTAIN AN OPEN DOOR POLICY FOR ALL OF OUR PROGRAMS AND STRIVE TO BE AN INTERNAL RESOURCE SO THAT WE CAN FOR MORE EFFECTIVELY MEET OUR MISSION GOALS.
HERE'S THE PROPOSED 2025 QA SCHEDULE THAT HAS BEEN DEVELOPED IN CONJUNCTION WITH JAY'S RISK ME, UH, RISK ASSESSMENT METHODOLOGY.
UH, THESE PROGRAM REVIEWS WILL BE CONDUCTED IN ADDITION TO THE ONGOING IT PROJECTS AND INITIATIVES FROM THE INFORMATION AND PRIVACY OFFICE.
AND THEN FINALLY, I ALWAYS LIKE TO EMPHASIZE THAT INTERNAL AUDIT AND QUALITY ASSURANCE HAVE FORMED A PARTNERSHIP TO ENSURE COMPREHENSIVE MONITORING, INTERNAL MONITORING OVER THE AGENCY'S FISCAL AND PROGRAMMATIC ACTIVITIES.
AND JAY AND I WOULD BOTH LIKE TO THANK ACOG STAFF FOR THEIR CONTINUED SUPPORT AND FACILITATION OF OUR REVIEWS.
HERE'S A VISUAL REPRESENTATION OF THE PROPOSED 2025 REVIEW SCHEDULE INCLUDED FOR REFERENCE IN YOUR PACKETS.
AND WITH THAT, UM, I'M HAPPY TO ANSWER ANY QUESTIONS AND RESPECTFULLY REQUEST YOUR APPROVAL OF 2024 INTERNAL AUDIT AND QUALITY ASSURANCE ACTIVITIES, AS WELL AS THE PROPOSED 2025 INTERNAL REVIEW SCHEDULE.
WE FINALLY MADE IT TO THE.GOV.
UH, WE HAVE FINALLY, UH, GOTTEN APPROVAL FOR THAT, FOR THAT DOMAIN.
THANK YOU FOR THE WORK THAT YOU DO AND YOUR DEPARTMENT IN THIS SPACE.
ANY QUESTIONS OR COMMENTS? BOARD MEMBERS? YES.
OR MAYOR, I HAVE TWO QUESTIONS AND REQUEST.
UM, SO FIRST QUESTION, UM, IS THE, UH, ARE WE DOING ANYTHING ABOUT, UM, RANSOMWARE? THINK ABOUT THE PEOPLE THAT HAVE BEEN IMPACTED BY THIS.
THE GOVERNMENTAL ENTITIES TO FREEZE ALL OF YOUR, UH, OPERATIONS FOR WEEKS OR MONTHS.
COST MILLIONS TO TENS OF MILLIONS OF DOLLARS.
YEAH, WE ARE, WE ARE CONSTANTLY ITERATING, TRY AND MAKE US A, A HARD ATTACK SERVICE, SPECIFICALLY WITH REGARDS TO RANSOMWARE.
AS, AS YOU KNOW, THE NUMBER THING THAT, THAT AFFECTS GOVERNMENT OR THE NUMBER ONE CYBERSECURITY THREATEN MAJOR MOST, UH, THE, THE MAJOR RESS RANSOMWARE IS PHISHING AT PHISHING EMAILS.
SO WE'RE CONSTANTLY, CONSTANTLY TRYING TO, UH, UH, WE ARE, WE HAVE, WE HAVE IMPLEMENTED OUR MANAGED SECURITY AWARENESS THROUGH ONE OF OUR, ONE OF OUR TOOL PROVIDERS, WHICH PROVIDES STAFF ONGOING, ONGOING TRAINING, UM, AND SORT OF CONDUCT INTERNAL PHISHING TESTS TO TRY AND HAVE STAFF, UH, KNOW KIND OF WHAT, WHAT TO LOOK OUT FOR IN REGARDS TO LIKE THESE MALICIOUS EMAILS.
UM, UH, JUST A COUPLE WEEKS AGO, CLIFF AND OUR IT PROVIDERS TO TALK ABOUT SPECIFICALLY ADDING COMPONENTS OR SPECIFICALLY MAKING FOR BUSINESS CONTINUITY AND DISASTER RECOVERY PLANS IN THE EVENT OF A RANSOMWARE.
SEE WHAT IT WOULD TAKE TO STAND OUR NETWORK UP AFTER SUCH AN IMPACT, UM, SORT OF PLANNING FROM WORST CASE SCENARIO BACKWARDS FROM THERE.
SO, TO, TO ANSWER TO YOUR QUESTION, YES, RANSOMWARE IS KIND OF A PERENNIAL CONCERN, UH, WITHIN, UH, INTERNALLY.
AND WE'RE, WE'RE SORT OF ALWAYS WORKING, WORKING WITH THAT KIND OF A THREAT IN, IN MIND.
AND, AND THIS IS SOMETHING THAT WE'VE DEALT WITH A TON OF, I MEAN, SPEARFISHING, I GET, UH, EMAILS FROM OUR STAFF SAYING, HEY, I THINK YOU'VE BEEN HACKED.
AND I'M LIKE, NO, THEY'RE TRYING TO HACK YOU.
THAT'S SOMETHING THAT WE'VE LOOKED AT IN INSURANCE FOR THAT.
BUT I LIKE THE WAY THAT YOU'RE APPROACHING THAT.
WELL, MAYOR, UH, BRENT HAS HIT ON IT, BUT WE TALK ABOUT THIS ALL THE TIME.
HE'S DONE REALLY A LOT OF WORK ON IT THIS YEAR ON THAT BUSINESS CONTINUITY PLAN, ALONG WITH, WITH JACOB.
AND WE ARE DOING OUR BEST TO, AS HE SAID, HARDEN OUR SYSTEM TO, UH, PREVENT THAT.
BUT WE HAVE A, UM, I FORGOT WHAT YOU CALL THE, THE BACKUP, BUT WE HAVE A CLOUD BACKUP SYSTEM THAT CANNOT BE PENETRATED THEORETICALLY UNLESS THEY'RE HIT.
UH, YEAH, I KNOW, BUT IT'S, IT IS NOT, IT IS NOT TIED TO OUR SYSTEM.
SO IT'S WHAT IS INDEPENDENT, I FORGOT THE WORD FOR IT, BUT WE HAVE, AND WE ARE ACTUALLY TRANSITIONING TO A NEW PROVIDER, UH, THAT IS SUPPOSED TO PREVENT, PROVIDE EVEN BETTER, UH, UH, SECURITY ALONG THAT LINE.
AND THEN WE ARE, UH, WE HAVE REALTIME MONITORING OF OUR SYSTEMS AND WE PROVIDE, WE PAY A PROVIDER FOR THAT.
WE ALSO ARE, UH, DOING THE BUSINESS CONTINUITY PLAN, BECAUSE MUCH TO MY CHAGRIN, WHEN I WAS TALKING TO OUR MANAGED PROVIDER, THEY SAID THAT THEY COULD GET US BACK UP WITH, THEY'VE ALWAYS TOLD ME FOR YEARS THEY COULD GET US BACK UP WITHIN 24 HOURS.
WELL, THAT MEANT THE NETWORK SERVERS DOESN'T MEAN THE ENDPOINTS.
[01:30:01]
WE'VE GOT 300 COMPUTERS THAT WE'VE GOTTA GET ONLINE.SO THEY'RE BUILDING A BUSINESS CONTINUITY PLAN TO SEE WHAT IT WOULD TAKE TO GET RUNNING FROM START TO FINISH ON A WORST CASE SCENARIO AND GETTING ALL THE INFORMATION NECESSARY AND GET IT TOGETHER SO THAT IF THAT HAPPENS, WE KNOW WHO'S GONNA BE THE PRIORITY, YOU KNOW, WHAT IT'S GONNA TAKE, WHAT THEY NEED, WHAT SERVICES, AND WHAT PARTNERS WE NEED TO CONTACT AND REACH OUT TO FIRST.
SO THEY'RE DEVELOPING THAT PLAN.
AND FINALLY, THE LAST THING WE'RE DOING THAT'S REALLY IMPORTANT TO ME, AND YOU MENTIONED IT, IS WE ARE WORKING TO MAKE SURE THAT OUR SYSTEMS MEET THE HIGHEST LEVEL, UH, OF, OF INTEGRITY SO THAT WE CAN GET THE HIGHEST LEVEL OF CYBERSECURITY INSURANCE.
UH, AND THAT THE APPLICATION FOR THAT IS RIGOROUS, AS YOU PROBABLY KNOW.
AS A MATTER OF FACT, WE'VE SUBMITTED THAT APPLICATION TO GET THE HIGHEST LEVEL OF INSURANCE.
AND WE FEEL LIKE IF WE CAN MEET THEIR STANDARDS, WE'RE, WE'RE TOP TIER.
AND SO WE'VE SUBMITTED THAT APPLICATION NOW AND WE FEEL LIKE WE'RE IN THAT POSITION.
MAKE SURE WE'RE ALREADY AWARE OF THIS.
JUST MAKE SURE THAT IT'S ON THE BACKEND SYSTEMS AND THE CLOUD BASED SYSTEMS AS WELL.
'CAUSE THAT'S WHERE IMPACTS YOU GUYS.
SO THEN MY REQUEST, AND THEN ONE MORE QUESTION.
OUR REQUEST IS, CAN YOU, UH, HELP US FIGURE OUT HOW TO DO THAT.GOV? 'CAUSE
MY, MY EMAIL IS ALWAYS OPEN TO ANY, ANY BOARD MEMBERS WHO HAVE QUESTIONS.
AND THE LAST QUESTION IS, HAVE WE LOOKED AT, UH, WHEN I LOOK AT, UH, SOME OF THE CHALLENGES WE HAVE AS SMALL CITIES AND RURAL COUNTIES, UM, THE AMOUNT OF RESOURCES THAT WE HAVE FOR THESE IT KINDS OF SERVICES ARE PRETTY LIMITED.
AND WE ARE AT INCREDIBLE RISK.
I MEAN, OUR, OUR BUDGET IS PRETTY SMALL COMPARED TO A LOT OF, I COMPARED TO CPS.
AND OUR BUDGET'S A LOT BIGGER THAN YOUR, I CAN ONLY IMAGINE, MAYOR GOES BACK TO ME, SORT OF EVANGELIST FOR THE MSI CYCLE.
IT'S A FREE VOLUNTARY FOR STATE, LOCAL, TRIBAL, TRIBAL TERRITORIAL GOVERNANCE.
THAT'S, UM, THAT IT'S DESIGNED, THAT MINDSET IS THAT THESE, THESE SMALL AND LOCAL GOVERNMENTS IS BECOMING INCREASING TARGETS OF CYBERSECURITY.
THEY DON'T HAVE A TO SPEND TO SOLVE THIS PROBLEM.
SO A SHARING AND ANALYSIS CENTER OF ALL MEMBER GOVERNMENTS ACROSS THE COUNTRY, UM, IT'S AN ORGANIZATION THAT'S, THAT'S, UH, THE, THE PRICE IS RIGHT IN THAT MEMBERSHIP IS FREE.
AND YOU, UH, IT PROVIDES MEMBERS WITH A HOST OF, OF FREE SERVICES AND RESOURCES AIMED SPECIFICALLY TACKLING THAT RESOURCE PROBLEM.
SO THE QUESTION WAS, HAVE WE LOOKED AT, UM, HAVE WE LOOKED AT DOING SOMETHING THAT IS MAYBE A SERVICE TO, UM, SOME OF THE SMALLER CITIES AND, UH, RURAL COUNTIES THAT THE CHALLENGE THAT WE HAVE, EVEN IF IT'S A FREE SERVICE, WE'VE GOT NOBODY, I DON'T HAVE ANYBODY SMART ENOUGH TO DO OUR LIVE MEETINGS.
NOT SMART ENOUGH, EXPERIENCED ENOUGH.
THEY DON'T HAVE THAT EXPERTISE.
AND IT TAKES SOMEBODY LIKE WE HIRED A NEW IT, UH, COMPANY, WHICH IS GREAT.
THEY KNOW WHAT THEY'RE DOING, BUT WE DON'T KNOW WHAT TO ASK THEM FOR.
WE DON'T KNOW, LIKE INTERNALLY WITH OUR STAFF, WE DON'T HAVE AN INDIVIDUAL IT PERSON.
'CAUSE IT'S NOT IN OUR BUDGET.
BUT IF WE LOOKED AT DOING THAT AS A SERVICE TO SMALL CITIES, I THINK THAT'D BE A BIG BENEFIT.
SO MARY TALKING ABOUT LIKE MAYBE THE GRANT PROGRAM THAT WE'RE, THAT CLIFF'S BEEN TALKING ABOUT, SOMETHING LIKE THAT.
I THINK THAT THAT WOULD BE SOMETHING VERY HELPFUL SO THAT IT COULD BE SOMEBODY THAT WOULD BE OUR, UM, ANY, I, I THINK THAT, I SPEAK FOR A LOT OF OTHER SMALL CITIES THAT DON'T HAVE THAT IN-HOUSE OPPER, UH, IN-HOUSE EXPERTISE TO DRIVE AT A STRATEGIC LEVEL, NOT AT A TACTICAL LEVEL.
UH, KNOWING WHAT THINGS TO APPROACH, WHAT THINGS TO ASK, WHO TO TALK TO.
IT WOULD BE ALMOST LIKE, UH, AN IT STRATEGIST, UM, THAT IS VERY SPECIFIC TO LOCAL GOVERNMENT.
UH, I THINK THAT THAT WOULD BE A GREAT SERVICE THAT WAS PROVIDE OUR LOCAL GOVERNMENTS IN PROTECTING ITSELF.
ONE OF THE THINGS THAT WE'VE DONE WITH OUR MANAGED SERVICES PROVIDER, WHICH IS COMPUTER SOLUTIONS, IS BUILD IN A CLAUSE THAT SAYS, YOU KNOW, WE'VE GONE, WE ARE ACTUALLY GOING THROUGH THE PROCUREMENT PROCESS JUST COMPLETED IT.
AND AS REN SAID, WILL BE COMING TO YOU FOR A NEW CONTRACT.
BUT, UH, WITH OUR CURRENT MANAGED SERVICES PROVIDER, COMPUTER SOLUTIONS, WE BUILD IN A CONTRACT THAT ALLOWS OUR MEMBER GOVERNMENTS TO PIGGYBACK ONTO THE RATES THAT WE'VE ALREADY PROCURED.
THAT'S ONE OF THE THINGS THAT WE COULD DO.
WHETHER OR NOT I, I AM HESITANT TO SAY WHETHER WE COULD PROVIDE THE KIND OF SERVICE THAT YOU'RE TALKING ABOUT JUST BECAUSE OF, YOU KNOW, WE ARE, WE HAVE OUR OWN INTERNAL CONSTRAINTS AS FAR AS WHAT OUR, OUR KNOWLEDGE IS.
WE RELY SO HEAVILY ON COMPUTER SOLUTION BECAUSE OF THE, THE ABSOLUTELY DAILY CHANGING ENVIRONMENT.
UH, AND SO THAT'S THE ONE THING THAT, UH, MAKES ME SAY, YOU KNOW, YOU NEED SOMEBODY THAT DOES THAT, YOU KNOW, 24 7 RIGHT.
BUT COMPUTER SOLUTIONS WOULD BE A GOOD ONE.
SERVICES, AND WE APPRECIATE THAT.
WE ACTUALLY LOOKED AT, UH, LEVERAGING
[01:35:01]
COMPUTER SOLUTIONS.UH, WE CHOSE ANOTHER PROVIDER, UH, JUST BECAUSE OF SIMILAR SERVICES AND BETTER COSTS.
UH, BUT AGAIN, WHAT WE DON'T HAVE IS THAT, UM, IF YOU THINK ABOUT A SINGLE IT PERSON THAT CAN KNOW WHAT QUESTIONS TO ASK, KNOW WHAT SERVICES, WELL, WHAT I, WHAT I WAS GONNA SAY IS ONE OF THE THINGS THAT WE DID WHEN WE, WHEN I, WHEN I CAME HERE IN 2015, OUR COMPUTER NETWORK WAS A SHAMBLES.
AND, AND I KNOW VERY LITTLE ABOUT COMPUTERS.
AND WHEN I COULD RECOGNIZE IT WAS A SHAMBLES, IT WAS BAD.
AND SO WE GOT IN A COMPUTER CONSULTANT, UH, AT THAT TIME, A MAN BY THE NAME OF SIM CONSULTING.
HE HAD A WHOLE SERIES OF TOOLS THAT HE WENT THROUGH AND EVALUATED IT.
AND SO I REMEMBER AT THAT TIME THAT COST ABOUT $20,000.
AND I KNOW THAT'S EXPENSIVE, BUT, YOU KNOW, WE FOUND IT WELL WORTH IT.
AND SO TO GET THE, SOMEBODY THAT WOULD GUIDE YOU AND HELP US STRUCTURE A NETWORK, AND THEN THAT'S, WE USE THAT PLAN TO GO OUT AND, AND COMPARE IT AGAINST WHAT WAS BEING OFFERED BY THE MANAGED SERVICES PROVIDER.
UH, BUT THAT WOULD BE, YOU KNOW, MY SUGGESTION IF YOU CAN DO IT, BUT I WOULD CERTAINLY BE OPEN TO AN IDEA IF WE COULD DO THAT.
I, I, YOU KNOW, MS. LEWIS, THERE WAS JUST WHISPERING IN MY EAR ABOUT THE IDEA OF LIKE A CO-OP THAT WOULD DO SOMETHING LIKE THAT.
I DON'T KNOW, YOU KNOW, AND I DON'T KNOW JACOB, JACOB AND BRENNER MY EXPERTS ON THE COMPUTER STUFF.
I DON'T EVEN KNOW IF WE KNOW, IF WE KNOW THE RIGHT QUESTIONS TO ASK TO HIRE SOMEBODY.
THAT COULD BE A GUIDE FOR PEOPLE.
IF, IF I CAN, UH, LET US TAKE THAT BACK AND TRY TO BRING BACK, UH, SOME PRELIMINARY SOLUTIONS.
UM, I HAVE SOME IDEAS IN MIND, BUT, UM, I DON'T WANT TO, TO GET OUT.
UH, SO LET US TAKE THAT BACK AND WORK ON SOME SOLUTIONS WE CAN FOR THE NEXT SECOND.
I'D HAPPY, I'D BE HAPPY TO DISCUSS AND COLLABORATE WITH THAT.
IT'S NOT SOMETHING, OBVIOUSLY THAT FITS IN WITH OUR EXISTING SYSTEMS, BUT WHEN I LOOK AT US AS ACOG, WHAT BENEFIT CAN WE PROVIDE TO THE COMMUNITIES? UH, AND REALLY THIS IS, IF YOU THINK ABOUT THE, THE LEVEL OF RISK THAT WE HAVE AT THE LOCAL GOVERNMENT LEVEL WITH, ESPECIALLY WITH ALL OF THE SPEARFISHING THAT WE'VE ENCOUNTERED, IF THERE WAS A GROUP THAT JUST DECIDED, HEY, THIS IS AN EASY TARGET.
THIS IS WHAT WE'RE GONNA GO AFTER, THEY DID A CONSERV CONCERTED EFFORT IN SPECIFIC TO GRAPHIC AREAS, THERE'S A GOOD POSSIBILITY THAT, THAT IT WOULD BE A WIDESPREAD, UH, IMPACT.
SO I THINK THAT IT'S SOMETHING THAT IF THE, IF A FIVE IS LOOKING, IS LOOKING TO MAKE A BIG IMPACT, THAT MIGHT BE A GOOD PLACE TO DO IT.
I KNOW THAT YOU'VE HEARD ME TALK ABOUT THIS IN THE PAST.
I'M ABSOLUTELY TERRIFIED ABOUT WHAT OUR, THE VULNERABILITIES OF OUR, OF OUR MEMBER GOVERNMENTS AND COMMUNITIES, BECAUSE SO MANY OF 'EM DON'T EVEN KNOW WHAT'S LURKING OUT THERE.
I MEAN, WE GET HIT ALL THE TIME.
WE HAVE SPENT, I, I FORGOT, YOU KNOW, THE, SAW THE BUDGET NUMBERS, 1.3 MILLION OR SO THAT WE SPEND ON OUR COMPUTER SECURITY, AND IT'S NOT ENOUGH.
AND I, I THINK OUR NUMBER, QUITE FRANKLY, IS A LITTLE BIT, UH, UH, UNDER ASSESSED THIS YEAR BECAUSE WE'VE LEARNED OF SOME MORE RECENT THINGS THAT WE MAY BE HAVING TO IMPLEMENT JUST TO MAINTAIN THE TYPE OF SECURITY THAT I WANT TO MAINTAIN AND THAT THE AGENCY NEEDS, I BELIEVE.
AND SO IT IS A TERRIFYING ASPECT TO THINK OF SO MANY SMALLER MEMBER GOVERNMENTS WITHOUT RESOURCES THAT WE HAVE TO PROTECT THEIR NETWORKS.
IF JACOB'S GOT A SOLUTION OR AN IDEA, I'M OPEN TO CER CERTAINLY EXPLORING IT.
THE, THE LEVEL OF COST IS, AS YOU DEFINE THAT, YEAH.
COST IS SO MUCH SMALLER THAN EACH INDIVIDUAL ONE.
THE RESULT WOULD BE SO MUCH BETTER.
I JUST, I THINK IT'S A GOOD PROGRAM TO LOOK AT.
WE PROBABLY NEED TO TALK ABOUT THIS A LOT MORE.
DID YOU HAVE A QUESTION, MA'AM? OH, OKAY.
I THOUGHT YOU HAD YOUR HAND UP JUDGED.
UH, TEXAS ASSOCIATION OF COUNTIES HAS SIERRA, WHICH WE BELONG TO, AND THAT'S A GOOD RESOURCE.
I DON'T KNOW IF YOU, TML HAS THAT, BUT ARE Y'ALL FAMILIAR WITH THAT? THE C PROGRAM? SIERRA CIA.
WHAT'S IT CALLED? JUDGE, CIRA, I CAN'T REMEMBER WHAT THE ACRONYM WAS.
WE, WE, AND WE JUST HAD A POTENTIAL BREACH AND THEY CAME IN AND TOOK CARE OF IT.
BUT THAT'S THROUGH THE ASSOCIATION OF COUNTIES AND THE, UH, TEXAS MUNICIPAL LEAGUE RISK POOL OFFICER OFFER SERVICES ALSO.
I DON'T KNOW WHAT THEY ARE, BUT MR. HAS LOCK ARE YOU HAD YOUR HAND UP, SIR? YES, MA'AM.
WE HAVE SPENT AN INORDINATE AMOUNT OF TIME, UH, PROTECTING OUR SYSTEMS BOTH THERE AND UNIVERSITY HOSPITAL.
UM, WE HAVE BROUGHT PEOPLE IN, UH, TO SPECIFICALLY LOOK AT WHAT WE'RE DOING, HOW WE'RE DOING IT.
UH, BILL PHILLIPS AT UNIVERSITY HOSPITAL, UH, IS PROBABLY AS GOOD AS YOU GET, UH, WITH
[01:40:01]
THE MASSIVE AMOUNT OF STUFF THAT WE HAVE GOING ON OUT THERE.UM, UH, WE'VE ALSO BROUGHT PEOPLE IN FROM
UH, LOOK AT SOME OF THE STUFF THAT WE'RE DEEPLY INVOLVED IN.
UH, WE HAVE A, MOST PEOPLE DON'T KNOW, BUT WE HAVE A VERY LARGE COMPUTER OPERATION HOUSED IN THAT FIELD OUT THERE.
WELL, I KNOW IT IS A REPUBLIC MEETING.
WE BACK UP THE CITY OF CORPUS AT US AND THEY COME.
SO WE'D BE MORE THAN HAPPY TO.
ALSO, I'M TERRIFIED OF IT ALSO.
EVERY, EVERY DAY THAT GOES BY, UH, WE GET HIT CONSTANTLY AT UNIVERSITY, GET HIT AT NINE ONE.
THERE'S A PERSON THAT WE USE HERE IS PROBABLY AS GOOD AS YOU DO IT.
AND, UH, AS YOU CAN FIND IN CONJUNCTION WITH UTSA.
AND SO, UH, I'LL BE HAPPY TO TALK TO YOU ABOUT IT.
UH, I JUST THINKING IT WOULD MAKE SENSE, AGAIN, THE IMPACT ON THE COMMUNITY OF DEALING WITH THIS AT A STRATEGIC LEVEL, A PROACTIVE STRATEGIC LEVEL, SO THAT THE THING THAT DOESN'T, THAT MESSES US UP AT A, AT A BASE LEVEL IS THE THINGS THAT WE KNOW THAT WE DON'T KNOW.
THE PROBLEM IS THAT WE DON'T KNOW WHAT WE DON'T KNOW AND OTHER INSTANCES.
AND WITHOUT HAVING SOMEBODY THAT IS FORWARD THINKING WITHOUT HAVING, LIKE THE IT DEPARTMENT OF THE COMPANY THAT I WORK FOR, INCREDIBLY PROACTIVE, THEY ACTIVELY PUT MEASURES IN PLACE, THEY KNOW WHAT TO DO AND A LOT OF US DON'T.
SO IT WOULD BE, I THINK, A GOOD MISSION FOR US TO FIND FUNDING AND TO BUILD A PROGRAM AROUND THAT.
WELL, MAYBE THAT'S AN ITEM THAT WE CAN SUGGEST FOR, FOR, FOR JOE.
VERY, UH, IMPORTANT DISCUSSION.
THANK YOU FOR YOUR, YOUR COMMENTS.
WELL, WITH THAT, ARE WE READY NOW TO HAVE A VOTE TO SEND ITEM 12 TO THE, UH, TO THE BOARD, MR. RUTH? OKAY.
SECOND BY MR. OCKER TO MOVE ITEM 12 TO THE BOARD.
[13. Items to be placed on the Board of Directors meeting agenda from the Executive Committee.]
13, ITEMS TO BE PLACED ON THE BOARD'S, UH, DIRECTOR, DIRECTOR'S BOARD, UH, FROM THE EXECUTIVE COMMITTEE.DO WE NEED TO SAY WHAT THOSE ARE? I'VE GOT 'EM.
THE ITEM THAT WAS ON HERE EXCEPT FOR, EXCEPT FOR, UM, YES, THOSE ARE THE, THE ITEMS THAT WE, MY BRAIN JUST WENT IN.
MR. I WOULD JUST LIKE TO MAKE SURE THAT THE MIN THE MINUTES, AT LEAST THE MINUTES REFLECT THIS DISCUSSION THAT THE MAYOR HAD.
OKAY? THERE WAS NO MOTION TO ENSURE THAT THIS ISSUE IS RECORDED AND THAT WE FOLLOW UP ON.
I DON'T THINK SHE QUITE UNDERSTOOD WHAT YOU WANTED.
MR. THE MAYOR HAD AN ISSUE WITH RESPECT TO, UH, SUPPORT THAT WE MIGHT GIVE TO SMALL GOVERNMENTS ON CYBERSECURITY.
WE WANNA MAKE SURE THAT THAT'S RECORDED IN THE MINUTES.
[14. Items to be placed on the agenda for the next Executive Committee meeting.]
MOVING TO ITEM 14.UH, ITEMS BE PLACED ON THE AGENDA FOR THE NEXT EXECUTIVE COMMITTEE MEETING.
DO WE HAVE TO SAY WHAT THOSE ARE? NO.
[15. Next meeting is scheduled for Wednesday, January 15, 2025 at 10:00 a.m. at AACOG.]
15, THE NEXT MEETING IS SCHEDULED FOR WEDNESDAY, JANUARY 15TH, 2025.AND AT 1143, UH, WE ARE MOVED TO ADJOURNMENT.
THANK YOU ALL AGAIN FOR YOUR TIME AND YOUR, UH, INPUT.