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[00:00:01]

ALL RIGHT, WELL. GOOD MORNING.

[Roll Call]

THIS IS THE FINANCE COMMITTEE MEETING OF THE EAST BAY REGIONAL PARK DISTRICT FOR WEDNESDAY, OCTOBER 23RD, 2024, STARTING AT 10:32. WILL THE RECORDING CLERK PLEASE TAKE THE ROLL? TODAY'S MEETING IS BEING HELD PURSUANT TO THE BROWN ACT.

STAFF IS PROVIDING LIVE AUDIO AND VIDEO STREAMING.

MEMBERS OF THE PUBLIC WISHING TO MAKE A PUBLIC COMMENT MAY DO SO BY SUBMITTING AN EMAIL, LEAVING A VOICEMAIL, OR JOINING LIVE VIA ZOOM WITH THE LINK PROVIDED ON THE AGENDA LOCATED ON THE DISTRICT WEBSITE.

IF THERE ARE NO QUESTIONS ABOUT THE MEETING PROCEDURES, WE WILL BEGIN.

OKAY. ITEM NUMBER TWO IS APPROVAL OF THE MINUTES.

WE DON'T HAVE ANY THIS TIME, SO WE'LL MOVE ON TO NUMBER THREE.

PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA.

DO WE HAVE ANY OF THOSE? NO PUBLIC COMMENTS? NOT ON THE AGENDA.

OKAY. THEN WE'LL MOVE ON TO NUMBER FOUR ACTION ITEMS, AND FOUR A IS RECOMMENDATION TO THE BOARD OF DIRECTORS TO ACCEPT

[Action Items]

THE 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT.

GO AHEAD AND SHARE YOUR SCREEN, DEB.

ALL RIGHT. HI, EVERYBODY.

CAN YOU HEAR ME? ALL RIGHT.

YES. LOUD AND CLEAR.

GREAT. ALL RIGHT, GIVE ME A SECOND HERE.

I'M GOING TO PULL UP OUR PRESENTATION AND THAT'S NOT IT.

ALL RIGHT. HOW'S THAT? GOOD. GO AHEAD.

WE SEE IT. WE SEE.

GREAT. GREAT. ALL RIGHT. SO THIS IS THE PRESENTATION OF THE EAST BAY REGIONAL PARK DISTRICT'S 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT, AND BEFORE I GET INTO THIS OVERVIEW, I WANT TO THANK THE STAFF WHO HAVE WORKED SO HARD TO PULL THE GIANT ACFR DOCUMENT TOGETHER.

SO, MOST IMPORTANTLY, KIM BALINGIT, OUR ACCOUNTING MANAGER, WHO I BELIEVE IS WITH YOU GUYS TODAY IN PERSON.

IN ADDITION, WE HAVE DAVID SUMNER, OUR AUDIT MANAGER, WHO WORKS ON ALL OF THE DOCUMENTATION IN THE BACK OF THE ACFR.

ALL OF THOSE TABLES AND CHARTS.

MICHELLE STRAWSON O'HARA, WHO DID SOME EXCELLENT PROOFREADING AND NOTE WRITING, AND THEN MANY, MANY OTHER STAFF IN FINANCE WHO CONTRIBUTED TO ALL THE DATA THAT GOES INTO THIS REPORT.

SO I'M GOING TO GIVE AN OVERVIEW, AND THEN WE HAVE LINDSEY ZIMMERMAN HERE FROM BROWN ARMSTRONG, AND SHE'S GOING TO ALSO PROVIDE HER PERSPECTIVE OF HOW THE AUDIT WENT AND THE RESULTS, AND THEN WE'LL BOTH BE AVAILABLE FOR QUESTIONS.

SO THIS IS GOING TO BE PRESENTED HERE OBVIOUSLY TO THE FINANCE COMMITTEE, AND THEN IT'LL GO TO THE PARK ADVISORY COMMITTEE ON OCTOBER 28TH.

SO NEXT MONDAY AND THEN NOVEMBER 19TH IT'LL GO TO THE FULL BOARD OF DIRECTORS.

ALL RIGHT, AND SO NOW WE'RE PULLING UP FOR YOU THE MOST IMPORTANT PIECE OF THE WHOLE AUDIT, WHICH IS THE LETTER FROM THE AUDITOR SAYING THAT WE HAVE A CLEAN AUDIT.

SO SO THIS IS WHAT YOU WANT TO RECEIVE? AND IT'S IN THE FRONT OF THE BOOK ON PAGE IN YEAH PAGE 13, AND THEN TO THE RIGHT OF THAT, WE HAVE THE GFOA CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING.

SO WE HAVE APPLIED FOR THAT GFOA AWARD AGAIN IN 2023.

THIS IS LAST YEAR'S LETTER, BUT WE'VE APPLIED FOR IT IN 2023 AND WE HOPE TO RECEIVE THAT SOON, AND NOW WE'RE JUST GOING TO MOVE THROUGH THE BOOK AND SORT OF TOUCH ON THE SOME OF THE IMPORTANT CHARTS AND GRAPHS.

SO THIS IS A GRAPH SHOWING YOU THE DISTRICT WISE NET POSITION OVER A TEN YEAR TIME PERIOD.

SO YOU'RE LOOKING BACK TO 2013 GOING ALL THE WAY THROUGH TO 2023, AND YOU CAN SEE OVER TIME OUR NET POSITION IS FOR THE MOST PART SLOWLY INCREASING, AND SO OUR TOTAL NET POSITION NOW IS $1,0652M, AND SO THIS IS OBVIOUSLY DUE TO MANY THINGS, BUT ONE OF THOSE IS THE NET INVESTMENTS IN CAPITAL ASSETS.

SO WE HAVE THAT GRAPHED ON THE LINE BELOW, AND SO THAT'S SHOWING ALSO A STEADY INCREASE, BUT THEN YOU'LL NOTICE A DECREASE IN CAPITAL

[00:05:03]

ASSETS IN THIS LAST YEAR.

SO I WANTED TO EXPLAIN THAT IS A CHANGE IN GFOA HAS EDUCATED ON MANY ENTITIES ON THE NEED TO CHANGE THE ACCOUNTING FOR CAPITAL ASSETS.

SO WE'VE TAKEN THAT INTO ACCOUNT HERE, AND SO IT LOOKS LIKE IT'S A DIP, BUT IT'S ACTUALLY JUST KIND OF AN ACCOUNTING ADJUSTMENT.

SO YOU'LL SEE THAT INCREASE CONTINUE IN FUTURE YEARS.

I THINK THAT'S ALL I WANTED TO TALK ABOUT HERE.

SO OUR INCREASE IN NET POSITION OVER THE LAST YEAR IS 71.2 MILLION, AND NOW WE'RE MOVING ON TO THE STATEMENT OF NET POSITION FOR THE GOVERNMENT SHOWING 2022 COMPARED TO 2023, AND SO AGAIN YOU CAN SEE, LET ME MOVE THIS.

SORRY I HAVE A LITTLE SLIDE I NEED TO MOVE HERE SO YOU CAN SEE THE CHANGE OVER THE TWO YEARS, THE CHANGE FROM THE PRIOR YEAR IN THAT FINAL COLUMN. A COUPLE OF THINGS WE WANTED TO POINT OUT TO YOU HERE.

ONE IS THE INCREASE IN ASSETS.

SO THAT, AGAIN, IS JUST US TAKING ON DIFFERENT CAPITAL PROJECTS.

IN THE LAST YEAR, WE HAD THE ACQUISITION OF THE FOLEY RANCH PROPERTY AND MCCOSKER CREEK RESTORATION WERE TWO REALLY LARGE CAPITAL PROJECTS THAT WERE COMPLETED. ON THE LIABILITY SIDE, YOU CAN SEE A DECREASE IN OUR LONG TERM LIABILITIES, AND THAT IS RELATED TO US PAYING DOWN OUR 2022 MEASURE WW BONDS, SO THAT'S THE DEBT SERVICE HAPPENING AND US PAYING DOWN THOSE BONDS AND MOVING ON TO THIS NEXT PAGE, YOU CAN SEE THE GOVERNMENT WIDE STATEMENT OF ACTIVITIES, AND THIS IS MORE SHOWING OUR INFORMATION IN A WAY THAT'S MORE FAMILIAR I THINK, TO THE BOARD.

SO YOU'RE SEEING ON THE REVENUE SIDE AT THE TOP YOU CAN SEE THE CHANGE IN REVENUES BY FUNCTION.

SO WE HAVE OUR PROGRAM REVENUES AND THEN WE HAVE OUR GENERAL REVENUES.

SO THE PROGRAM REVENUES ARE WHERE WE'RE ACTUALLY PROVIDING A SERVICE WHERE WE HAVE LIKE CHARGES FOR SERVICE OR GRANTS, AND THEN THE GENERAL REVENUES ARE THINGS THAT ARE RECEIVED NOT FOR ANY PARTICULAR TASK THAT WE'RE DOING.

SO WE HAVE OUR PROPERTY TAXES THAT ARE COMING IN AND OUR GENERAL OBLIGATION BOND PROPERTY TAX AND THEN INVESTMENT EARNINGS.

SO JUST POINTING OUT A COUPLE OF BIG CHANGES THERE.

SO WE HAVE A BIG INCREASE IN GRANTS, AND THAT REALLY IS JUST RELATED TO TIMING OF OF WHEN WE RECEIVE GRANTS AND WHEN WE RECEIVE THE REVENUES OR EARN THE REVENUES FOR THOSE GRANTS, AND THEN LOOKING AT THE PROPERTY TAX REVENUES, THOSE ARE SLOWLY TRENDING UPWARDS AS THEY HAVE IN THE PAST, AND THEN WE HAD A BIG INCREASE IN OUR INVESTMENT EARNINGS IN 2023, AND THAT WAS RELATED JUST TO INCREASING INTEREST RATES FOR THE MOST PART.

SO WHEN THIS IS NOT NECESSARILY REVENUE THAT WE, THAT WE HAVE IN HAND.

SO WE FOR THE AUDIT, WE HAVE TO DO WHAT'S CALLED MARK TO MARKET, AND SO WE'RE SHOWING THE VALUE OF THOSE INVESTMENTS.

IF WE HAD TO SUDDENLY LIQUIDATE THEM ON DECEMBER 31ST, WHAT THEY WOULD BE WORTH.

SO THAT'S NOT NECESSARILY MONEY THAT WE HAVE IN HAND, BUT IT'S WHAT THOSE ASSETS WOULD BE WORTH IF WE HAD TO SELL THEM, AND THEN LOOKING DOWN AT THE EXPENDITURE SIDE, AT THE BOTTOM YOU CAN SEE SOME SIGNIFICANT CHANGES THERE.

ONE IS IT LOOKS LIKE A DECREASE IN THE EXECUTIVE AND LEGISLATIVE DIVISION AND THAT'S ACTUALLY RELATED TO THE BREAKOUT OF HUMAN RESOURCES.

YOU CAN SEE THAT BECAME ITS OWN DIVISION IN 2023.

SO THAT'S ADDED IN 2023 AND IT COMES OUT OF THE EXEC AND LEG DIVISION, AND I THINK THAT WAS THE MAIN POINTS I WANTED TO POINT OUT ON THIS SIDE.

ALL RIGHT, AND NOW WE'RE LOOKING AT THE GOVERNMENTAL FUNDS BALANCE SHEET AGAIN, COMPARING 2023 TO 2022, AND YOU CAN SEE THE CHANGE FROM THE PRIOR YEAR IN FUND BALANCE LOOKING AT THE CHANGE IN RESTRICTED FUND BALANCE FIRST OFF THIS IS SHOWING OUR AVAILABLE. THE MAIN CHANGE THAT YOU'RE SEEING HERE IS OUR AVAILABLE BOND PROCEEDS.

SO THAT'S A DECREASING AS WE'RE DRAWING DOWN ON THOSE BOND PROCEEDS, AND THEN WE ARE COMMITTING THEM TO PROJECTS.

SO YOU SEE THE INCREASE IN THE COMMITTED FUND BALANCE, AND THAT SECOND LINE.

SO THOSE ARE THE TWO MAJOR CHANGES IN OUR FUND BALANCE.

AGAIN THIS IS LOOKING AT ALL FUNDS AGGREGATED.

SO YOU'RE YOU'RE USED TO US TALKING ABOUT OUR FUND BALANCE FOR JUST THE GENERAL FUND, BUT THIS IS SHOWING ALL OF OUR FUNDS TOGETHER, AND

[00:10:03]

NOW GOVERNMENTAL FUNDS REVENUE AND EXPENDITURES.

THIS IS SHOWING EVEN MORE DETAIL OF THOSE REVENUES AND EXPENDITURES THAT WE WERE TALKING ABOUT EARLIER.

SO WE HAD THE INCREASE IN PROPERTY TAX REVENUES, INCREASE IN INVESTMENT EARNINGS.

ON THE EXPENDITURE SIDE, YOU'RE SEEING THAT MOVE OF THE NEW HR DIVISION COMING OUT OF THE EXEC AND LEG DIVISION AND YOU CAN SEE SOME INCREASES IN STAFFING EXPENSES HERE WHERE YOU CAN SEE EXPENSES INCREASING IN FOR EXAMPLE, OPERATIONS AND IN PUBLIC SAFETY.

A LOT OF THAT'S RELATED TO NEW STAFFING BEING ADDED, AND THEN ON THE PUBLIC SAFETY SIDE, WE HAD A MAJOR FUELS MANAGEMENT PROJECT UNDERWAY, AND NOW WE'RE LOOKING JUST AT THE GENERAL FUND HERE.

SO THIS IS IN THE WHAT'S CALLED THE RSI, THE REQUIRED SUPPLEMENTARY INFORMATION.

SO WE ARE SHOWING AT THE TOP REVENUES IN DETAIL.

YOU CAN SEE THE ORIGINAL BUDGET, THE FINAL BUDGET, IF THERE WERE ANY BUDGET ADJUSTMENTS AND THEN ACTUAL EXPENDITURES, AND THEN IN THE FINAL COLUMN VARIANCE FROM WHAT WAS BUDGETED. SO THIS IS KIND OF WHAT YOU GUYS ARE USED TO SEEING AS WE DO OUR QUARTERLY REPORTS, AND SO THIS INFORMATION WILL SEEM FAMILIAR TO YOU WHERE WE HAD INCREASES IN PROPERTY TAXES, INCREASE IN INTEREST EARNINGS.

ON THE REVENUE SIDE, THOSE ARE THE TWO MAIN DRIVERS, AND THEN ON THE EXPENDITURE SIDE, YOU CAN SEE WE UNDERSPENT IN ALL OF OUR DIVISIONS.

SOME MORE THAN OTHERS, AND THIS CAN BE RELATED TO VACANCIES OR PROJECTS THAT MAY HAVE GOTTEN STARTED BUT WEREN'T FULLY FINISHED, AND SO MAYBE THOSE FUNDS WERE STILL ENCUMBERED, BUT THE EXPENDITURES ARE GOING TO CONTINUE IN THE FUTURE YEAR.

NOW WE'RE MOVING ON TO OUR PENSION AND OPEB LIABILITIES.

SO WE HAVE AT THE TOP HERE OUR EBRPD RETIREMENT PLAN.

SO THAT'S THE RETIREMENT PLAN THAT THE PARK DISTRICT HAD BEFORE WE JOINED CALPERS AND YOU CAN SEE ON THE VERY FIRST LINE YOU'RE SEEING WITH THE GENERAL PLAN FOR THE WHAT USED TO BE CALLED THE TRANSAMERICA PLAN. WE ACTUALLY HAVE AN ASSET RATHER THAN A LIABILITY.

SO $1.3 MILLION ASSET, AND SO THAT'S WHY IT'S IN PARENTHESES THERE.

SO THAT'S SHOWING THAT WE NO LONGER HAVE THAT LIABILITY, AND THE SAFETY SIDE TOO IS IT'S ALMOST TO BEING AN ASSET AS WELL.

SO THAT'S GREAT NEWS.

THOSE ARE BOTH CLOSED PLANS.

SO IT'S MUCH EASIER TO CONTROL THOSE PLANS, AND THEY ARE WINDING DOWN.

SO YOU WOULD EXPECT TO SEE THAT BECOMING SMALLER AND BECOMING LIKE A SMALLER LIABILITY FOR US OVER TIME.

MOVING DOWN THE PAGE WE HAVE OUR CALPERS RETIREMENT PLAN AND THAT RETIREMENT PLAN.

THE LIABILITY HAS REALLY FLUCTUATED OVER OVER THE YEARS.

YOU'LL SEE THAT ON THE NEXT SLIDE, AND IT'S ACTUALLY INCREASED IN THIS PAST YEAR.

SO THE MISCELLANEOUS PLAN $128.4 MILLION LIABILITY, THE SAFETY PLAN, WE HAVE A $32.3 MILLION LIABILITY, AND THOSE HAVE REALLY EVERY YEAR THERE ARE NEW THERE ARE CHANGES RELATED TO INVESTMENT EARNINGS.

NEW PARTICIPANTS JOINING THE PLAN.

SO WE HAVE NEW LIABILITIES RELATED TO THAT, AND THEN JUST CHANGES IN EXPERIENCES RELATED TO HOW LONG PARTICIPANTS STAY IN THE PLAN, HOW LONG THEY'RE RECEIVING THEIR PENSIONS, AND THEN LASTLY WE HAVE OUR OPEB LIABILITY, AND AGAIN YOU CAN SEE THAT'S ACTUALLY AN ASSET.

SO WE'VE BEEN FUNDING THAT OPEB TRUST OVER MANY YEARS AND ARE FORTUNATE TO NOW ACTUALLY HAVE THAT BE AN ASSET ON OUR BOOKS. SO OUR TOTAL LIABILITY INCREASED ACTUALLY OVER THE LAST YEAR BY 9.6 MILLION.

ANOTHER QUESTION THAT WAS ASKED BY ONE OF THE FINANCE COMMITTEE MEMBERS WAS ABOUT OUR WHAT WE CALL OUR SECTION 115 PENSION TRUST.

SO WE STILL HAVE THAT SUPPLEMENTAL PENSION TRUST AND IT HAS A BALANCE.

IT HAD A BALANCE OF $8.2 MILLION AT THE END OF 2023, AND SO THIS IS JUST DEPICTING A LITTLE BIT OF WHAT I WAS TALKING ABOUT YESTERDAY.

SO THESE ARE ALL OF THOSE RETIREE BENEFITS OF SHOWING THE LAST APPROXIMATELY TEN YEARS OF HISTORY, AND YOU CAN SEE UP AT THE TOP WE HAVE OUR OPEB AND OUR GENERAL PLAN AND OUR SAFETY PLAN FOR THOSE TWO CLOSED PLANS THAT ARE BOTH THAT ARE ALL THREE OF THEM ARE ALMOST 100% FUNDED OR OVER 100% FUNDED, AND THEN WE HAVE DOWN AT THE BOTTOM, WE HAVE THE MISCELLANEOUS PLAN AND THE SAFETY PLAN THAT'S REALLY JUST BEEN BOUNCING AROUND BETWEEN

[00:15:07]

70 AND 80% FUNDED STATUS FOR QUITE A WHILE, AND THAT IS THE LAST SLIDE THAT I HAVE.

YOU'RE NOW GOING TO HEAR FROM LINDSEY ZIMMERMAN.

SHE'S GOING TO WALK THROUGH THESE OTHER REPORTS, THE AUDITOR'S COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE, THE APPROPRIATIONS LIMIT LETTER, AND THE SINGLE AUDIT REPORTS, AND AFTER LINDSEY'S PRESENTATION, WE'D BE HAPPY TO TAKE QUESTIONS, AND THEN WE DO NEED A RECOMMENDATION FROM THE COMMITTEE THAT THE FINANCE COMM ITTEE RECOMMEND TO THE BOARD OF DIRECTORS ACCEPTANCE OF THE 2023 ANNUAL COMPREHENSIVE FINANCIAL REPORT.

SO I'LL STOP SHARING NOW.

GREAT.

THANK YOU SO MUCH FOR ALLOWING ME TO PRESENT THE AUDIT RESULTS FOR THE YEAR ENDED DECEMBER 31ST, 2023 AUDIT.

ALSO WANTED TO SAY A BIG THANK YOU TO THE TEAM TO HELP GET THIS PROCESS GOING THROUGHOUT THE YEAR TO IT'S THERE'S A LOT OF WORK TO COMPILE ALL THAT INFORMATION TO MAKE THAT THE ACFR COMPLETE THE SINGLE AUDIT COMPLETE AND FINISHED AND ACCURATE.

SO I JUST WANTED TO SAY THANK YOU TO THE TEAM FOR THAT, AND THEN I WOULD JUST TOUCH ON A FEW OF THE ITEMS, THE SCOPE OF THE SERVICES THAT I PROVIDE AND MY TEAM, THE AUDIT TIMELINE AND WHAT WE CALL CRITICAL DATES LIST.

THEN I'LL GO OVER THE RESULTS OF THE AUDIT AND THEN AN OVERVIEW OF OUR FINANCIAL STATEMENT REVIEW, AND THEN LEAVE IT OPEN TO ANY QUESTIONS THAT YOU MIGHT HAVE.

SO OUR SCOPE FOR THIS AUDIT IS TO PERFORM A FINANCIAL STATEMENT AUDIT IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA AND IN ACCORDANCE WITH GAS GOVERNMENT GOVERNMENT AUDITING STANDARDS ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES.

WE ALSO PERFORM AN AUDIT OVER INTERNAL CONTROLS, OVER FINANCIAL REPORTING AND COMPLIANCE AND OTHER MATTERS.

WE ALSO DO AN AUDIT OVER COMPLIANCE, OVER THE MAJOR PROGRAM AND INTERNAL CONTROLS OVER COMPLIANCE AS REQUIRED BY UNIFORM GUIDANCE, WHICH IS THE SINGLE AUDIT WHICH I TOUCHED ON EARLIER AND THEN ALSO AT THE END OF THE AUDIT, WE PROVIDE A WRITTEN COMMUNICATION TO YOU AS THOSE CHARGED WITH GOVERNANCE, WHICH WE CALL THE SAS 114 LETTER, AND JUST AN OVERVIEW OF OUR AUDIT TIMELINE.

YOU CAN SEE THAT THIS PROCESS TAKES QUITE A BIT OF TIME.

WE PERFORMED OUR INTERIM FIELDWORK IN JANUARY, WHERE WE PERFORMED OUR WALKTHROUGHS AND DETAILED UNDERSTANDING OF KEY ACCOUNTING AREAS IN EVERY SIGNIFICANT PROCESS.

WE PERFORM CONTROLS OVER PERFORM TESTING, OVER INTERNAL CONTROLS, AND ALSO LOOKED AT THE FEDERAL EXPENDITURES AND DETERMINE WHAT WAS THE MAJOR PROGRAMS TO BE TESTED THIS YEAR.

WE WERE IN COMMUNICATION WITH YOU, WITH THE FINANCE COMMITTEE DISCUSSING THE SCOPE OF THE AUDIT AT THE BEGINNING OF THE AUDIT, AND THEN WE PERFORMED.

OUR FINAL FIELDWORK IS A LITTLE BIT DIFFERENT THIS YEAR, BUT WE WERE ABLE TO COMPLETE THE FIELDWORK AND OVER THE COURSE OF THROUGH MAY THROUGH SEPTEMBER, WHERE WE SUBSTANTIATED ALL OF THE BALANCES, CONFIRMED BALANCES, AND WE'RE ABLE TO PERFORM SUBSTANTIVE ANALYTICS AND SUBSTANTIVE DETAILED TESTING TO MAKE SURE THAT ALL THE BALANCES WERE ACCURATELY AND PROPERLY PRESENTED, AND THEN WE WERE ABLE TO ISSUE THAT ANNUAL COMPREHENSIVE FINANCIAL REPORT THAT ACFR IN SEPTEMBER, AND PERFORMED OUR REVIEW TO MAKE SURE EVERYTHING WAS ACCURATE AND THEN ISSUED ALL OF OUR REPORTS ON THE DEADLINE BY SEPTEMBER 30TH, AND FOR THE REQUIRED COMMUNICATION.

WE HAD NO NEW ACCOUNTING STANDARDS THAT WE NEEDED TO LOOK INTO THIS YEAR, WHICH WHICH HELPED.

WE DID LOOK AT THE SIGNIFICANT ESTIMATES AND MADE SURE ALL OF THOSE INPUTS WERE ACCURATE.

SO WE LOOKED AT THE FAIR VALUE OF INVESTMENTS.

THE CAPITAL ASSET, DEPRECIABLE LIVES, THE ACTUARIAL ESTIMATES WITH THE NET PENSION LIABILITY AND OPEB.

WE ALSO LOOKED AT RISK MANAGEMENT LIABILITIES AND ALSO THE INPUTS FOR THE LEASES, AND I AM HAPPY TO REPORT THAT WE HAD NO CORRECTED OR UNCORRECTED MISSTATEMENTS. WE HAD NO DISAGREEMENTS WITH MANAGEMENT, AND FOR THE HEART OF OUR MY PRESENTATION, WE HAVE WHAT DEB MENTIONED EARLIER.

WE HAVE AN UNMODIFIED OR CLEAN OPINION ON THE FINANCIALS AS A WHOLE.

[00:20:03]

WE ALSO HAD NO NONCOMPLIANCE WITH LAWS REGULATIONS.

HAPPY TO REPORT WE HAD NO MATERIAL WEAKNESSES OR NO SIGNIFICANT DEFICIENCIES OR ACTUALLY NO CONTROL ISSUES NOTED, AND THEN IN TERMS OF THE SINGLE AUDIT OR WHAT WE LOOKED AT FOR THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS, WE ALSO HAD NO MATERIAL WEAKNESSES OR SIGNIFICANT DEFICIENCIES, AND NO MATERIAL WEAKNESSES OR CONTROL DEFICIENCIES OVER THE FINANCIALS AS A WHOLE, AND JUST TO TOUCH ON THE DETAILED REVIEW THAT WE PERFORM OVER THE FINANCIAL STATEMENTS, WE HAVE AN ADMINISTRATIVE TEAM THAT LOOKS AT THE WORDING AND THE AND EVERYTHING IN DETAIL THERE, AND THEN WE HAVE OUR ENGAGEMENT TEAM REVIEW WHERE WE HAVE A SENIOR MANAGER AND THEN MYSELF AS A PARTNER REVIEW, AND THEN WE HAVE A TECHNICAL OR A QUALITY CONTROL PARTNER COME IN AND REVIEW AFTER WE'RE THROUGH AND THEN WE ALSO LOOK AT THE SINGLE AUDIT SUBMISSION TO MAKE SURE THAT'S BEEN PROPERLY SUBMITTED TO THE FEDERAL CLEARINGHOUSE ON TIME, AND THEN ALSO WE LOOK AT THE GFOA AWARD DETAIL.

WE HAVE A LISTING TO MAKE SURE THAT ACFR IS PROPERLY PRESENTED AND SUBMITTED ON TIME AND ACCURATE SO WE CAN MAKE SURE THAT YOU GAIN THAT GFOA AWARD AGAIN, AND WITH THAT SHORT AND SWEET, I KNOW YOU'RE ALL BUSY, SO JUST WANTED TO JUST ONCE AGAIN SAY THANK YOU AND THEN OPEN IT UP TO ANY QUESTIONS THAT YOU MIGHT HAVE.

ALL RIGHT. WELL, THANK YOU TO LINDSEY AND DEBORAH BOTH FOR THIS THESE PRESENTATIONS, AND I'M SURE WE'LL HAVE SOME QUESTIONS.

WOULD YOU LIKE TO GO AT IT? SO I WAS JUST TRYING TO FIGURE OUT.

THANK YOU SO MUCH, BY THE WAY FOR BOTH OF THESE PRESENTATIONS, AND I SEE THAT THERE'S A REVISED COPY THAT WAS SHARED WITH US TODAY, AND I MIGHT HAVE MISSED AN EMAIL, SO I APOLOGIZE FOR THAT, BUT I'M JUST CURIOUS, WHAT ARE THE CHANGES BETWEEN THE ONE THAT WAS SENT TO US LAST WEEK AND THE REVISED COPY? AND I JUST TRIED TO LOOK, TOO, BY THE WAY, AND EVERYTHING SEEMS TO MATCH UP AT MY FIRST GLANCE.

SO IT'S SUPER SUBTLE, BUT SO WE HAD GOTTEN SOME COMMENTS BACK FROM DIRECTOR ROSARIO AND DIRECTOR MERCURIO. I'M TRYING TO THINK THERE WAS, THERE WERE, THERE WERE SOME WORDING CHANGES RELATED TO AND I DON'T KNOW IF DIRECTOR MERCURIO REMEMBERS, LIKE ORDINANCE 38 AND HOW WE I CAN'T REMEMBER.

IT WAS NOT GIVING A COMPLETE DESCRIPTION OF THE E-BIKE POLICY.

YES. THANK YOU.

IT JUST NEEDED TO BE CLARIFIED A LITTLE BIT, YOU KNOW, I, YOU KNOW, WHEN YOU GET THESE LITTLE GLITCHES, THEY HAVE A TENDENCY TO CARRY FORWARD, AND SO YOU WANT TO STOP THEM, RIGHT.

SO, YOU KNOW, I KNOW WE HAD TO DO A LITTLE DO OVER HERE, BUT I REALLY DIDN'T WANT THAT TO GET OUT INTO THE WORLD AND CAUSE SOME.

YEAH. BECAUSE, YOU KNOW, I LOOKED AT IT AND I THOUGHT, DID I HAVE THIS? DID I MISUNDERSTAND WHAT WE DID? BUT IT WAS. IT WAS JUST NOT NOT NOT A COMPLETE DESCRIPTION.

YEAH, I THINK WE SPELLED BYRON INCORRECTLY, SO WE HAD TO FIX THAT, AND THEN I THINK THERE WAS A CHART IN THE BACK WHERE WE HADN'T INCLUDED THE WORDS PER CAPITA.

I THINK THOSE WERE THE THREE CHANGES.

TRYING TO FIND MY NOTES. YEAH.

OKAY. I THINK THERE WAS.

I'M SORRY. I THINK THERE WAS A MISSING VALUES ON THE Y AXIS.

YES. YEAH.

OKAY. CONNIE JUST SENT ME A TEAMS NOTE.

HOLD ON, LET ME SEE. ON PAGE 165, THE HEADING OF THE GRAPH WAS CORRECTED. SEE, I THINK THAT WAS THE Y AXIS NEEDED TO BE ADDED.

SO THOSE WERE THE CHANGES.

PRETTY SUBTLE, AND YES, SORRY, WE DIDN'T GIVE YOU AN EMAIL ABOUT THAT CHANGE.

WE JUST WANTED TO FIX IT AND GET YOU A NICE, CLEAN VERSION.

YEAH. THAT'S HELPFUL. YEAH, I WAS JUST CHECKING ALL THE NUMBERS, AND THEY ALL SEEM TO LINE UP, SO AT LEAST.

YES, YES, YES. NONE OF THAT WAS CHANGED, BUT YES.

ALWAYS GOOD TO HAVE, YOU KNOW, DIFFERENT MISSPELLINGS CORRECTED, AND THE E-BUY POLICY CERTAINLY IS SUPER IMPORTANT.

IN TERMS OF THINKING ABOUT OUR YOU KNOW, THE MEMBERS OF THE PUBLIC AND STAKEHOLDERS, AND SO I THINK THAT'S GOOD THAT ALSO WAS LOOKED AT. I THINK ONE THING THAT COULD BE HELPFUL.

SO REMIND ME AGAIN, I KNOW YOU MENTIONED THIS AT THE BEGINNING.

SO THIS WILL COME TO THE FULL BOARD OF DIRECTORS WHEN?

[00:25:04]

NOVEMBER 19TH.

NOVEMBER 19TH. OKAY, GREAT.

I THINK WHAT MIGHT BE HELPFUL WHEN YOU'RE GOING THROUGH THE SLIDES, BECAUSE I NOTICED THIS WHILE YOU WERE GOING THROUGH THE SLIDES TODAY, MIGHT BE TO INCLUDE THE PAGE NUMBER AND THE REPORT.

JUST SO THAT, YOU KNOW, IF SOMEONE HAS SOME NOTES IN THEIR COPY OF THE REPORT, THEY CAN FOLLOW ALONG WITH THE PRESENTATION.

GREAT, BUT OTHERWISE IT SEEMS PRETTY STRAIGHTFORWARD TO ME.

I GUESS IF I SEE ANYTHING ELSE, I'LL SHARE THAT WITH YOU, BUT I DIDN'T SEE ANYTHING MAJOR, AND I THINK AS LONG AS THE NUMBERS ARE THE SAME IN THE REVISED COPY AS THE EARLIER COPY, THEN I THINK I'M GOOD WITH THIS.

I GUESS I'LL JUST SHARE.

YOU KNOW, I'VE BEEN THINKING A LOT ABOUT OUR FINANCIAL STATEMENTS AND WHAT WE HAVE AVAILABLE TO THE PUBLIC, AND JUST WANT TO REITERATE THAT, YOU KNOW, THIS IS ALL AVAILABLE TO THE PUBLIC. IT IS SOMETHING THAT THEY CAN REVIEW.

I KNOW THAT THERE'RE SOME PEOPLE THAT WANT TO BE ABLE TO SEGMENT OUR DATA A LITTLE BIT MORE, BUT THAT'S NOT NECESSARILY A REQUIREMENT.

SO THIS IS GOING TO BE, YOU KNOW, AGGREGATED FOR THE ENTIRE DISTRICT, BUT I THINK THAT, YOU KNOW, FOLLOWING ALL THE GOOD GUIDELINES AND, YOU KNOW, APPLYING FOR THE CERTIFICATE OF ACHIEVEMENT ALL SPEAKS TO HOW WELL WE MANAGE YOU KNOW, OUR FINANCIAL STATEMENTS AND OUR AUDITS, AND I BELIEVE I KNOW THE ANSWER TO THIS, BUT I WANT TO ASK IT ANYWAYS IN TERMS OF THE CERTIFICATE OF ACHIEVEMENT, I BELIEVE WE RECEIVED THIS FOR AT LEAST, ACTUALLY, HOW MANY YEARS IN A ROW HAVE WE RECEIVED THIS? APPROXIMATELY, I BELIEVE IT'S 23 YEARS, AND THAT'S INCREDIBLE.

SO CONGRATULATIONS TO US AND HOPEFULLY WE'LL SEE THE DECEMBER 31ST, 2023.

I GUESS THE GOAL IS TO HAVE THAT BEFORE NOVEMBER 19TH.

YES. OR NO IT JUST YEAH.

NO WE WILL WE WILL MOST LIKELY NOT HAVE IT BY THEN.

GFOA USUALLY TAKES A LITTLE WHILE TO DO THEIR REVIEW, BUT IF WE DO, WE'LL DEFINITELY SHARE IT, AND THEN ONCE WE DO GET THE YOU KNOW, KNOCK ON WOOD WHEN WE GET IT THE GFOA LETTER, WE ALWAYS SHARE THAT WE'LL SEND OUT AN EMAIL AND THEN WE PUT IT ON THE WEBSITE AS WELL.

WONDERFUL. THANK YOU.

PROBABLY WON'T BE BY NOVEMBER 19TH, AND THAT'S OKAY.

OKAY. ALL RIGHT.

GOOD. THANK YOU FOR THAT.

DEE ANY COMMENTS OR QUESTIONS HERE? THANK YOU. NO, THIS WAS AN INCREDIBLE AMOUNT OF WORK, AND I APPRECIATE ALL THE ALL THE EFFORT THAT GOES INTO THIS, AND I JUST WANTED TO POINT OUT, ONE OF MY QUESTIONS WAS ONLINE.

IT THE CHARTS ARE KIND OF DISJOINTED BECAUSE YOU HAVE TO TOGGLE BETWEEN PAGES, BUT I SEE IT IN THE ACTUAL PRINT, IT'S ALL THE WAY ACROSS TWO PAGES.

SO IT MAKES A LOT OF SENSE.

SO THANK YOU FOR THAT, AND THEN DEBORAH, CAN YOU EXPLAIN FOR THE PUBLIC, ONE OF MY QUESTIONS WAS IN THE IN THE ON PAGE 164 SECURED AND UNSECURED TAX LEVIES.

CAN YOU EXPLAIN WHY ALAMEDA COUNTY IS WITHIN ONE YEAR IS ONLY LIKE 75% FOR THIS YEAR VERSUS CONTRA COSTA COUNTY, WHICH IS 100% EVERY, EVERY TIME? I THINK THAT'S YEAH. SO THIS IS PAGE 164 OF THE STATISTICS SECTION OF THE ACFR AND IS SHOWING THE ALAMEDA COUNTY PROPERTY TAX REVENUES AT THE TOP AND THE CONTRA COSTA COUNTY AT THE BOTTOM, AND YOU CAN SEE LIKE THERE'S A LOWER PERCENTAGE FOR ALAMEDA COUNTY, AND THAT'S IN CONTRA COSTA COUNTY COMES ACROSS AS 100%.

SO THAT HAS TO DO WITH THIS.

IT'S CALLED THE TEETER PLAN.

SO WE ARE ON THE TEETER PLAN WITH CONTRA COSTA COUNTY, WHICH MEANS THEY GIVE US 100% OF THE REVENUES THAT WE'RE SUPPOSED TO RECEIVE, AND THEN THEY THEN CONTRA COSTA COUNTY GETS TO DO COLLECTIONS AND COLLECT THE PENALTIES ON THE BACK END.

SO THAT MAY TAKE THEM A WHILE, BUT THAT'S, YOU KNOW, THAT'S THEIR PROBLEM TO DEAL WITH.

WE'RE GETTING 100% UPFRONT.

WITH ALAMEDA COUNTY, WE'RE NOT ON THE TEETER PLAN, AND SO WE'RE GETTING A PERCENTAGE OF THE REVENUE, WHATEVER THEY'VE RECEIVED AT THAT TIME, AND THEN AS THAT COMES IN LATER, LIKE MAYBE MANY YEARS UNTIL MAYBE THE PROPERTY LIKE DEFAULTS ENTIRELY AND IS SOLD AND THEN WE'LL THEN MAYBE WE'LL GET THOSE REVENUES, BUT IT COULD BE MANY YEARS OUT.

SO THAT'S WHY IT'S A LOWER PERCENTAGE ON ALAMEDA COUNTY.

DID THAT ANSWER IT? YES. THANK YOU.

OKAY. YEAH. I JUST WANTED TO MAKE THE HAVE THE PUBLIC AN OPPORTUNITY TO UNDERSTAND THAT.

SO. YEAH, AND THEN AND THEN THIS IS ACTUALLY A QUESTION FOR LINDSAY.

IT'S IN YOUR REPORT.

[00:30:01]

YOU YOU SAY YOU PERFORMED A TEST OF INTERNAL CONTROLS.

CAN YOU DESCRIBE WHAT THAT IS OR HOW THAT IS DONE.

YEAH, DEFINITELY. WE TAKE ALL OF THE MAJOR PROCESSES CASH DISBURSEMENTS, CASH RECEIPTS, PAYROLL, AND WE LOOK AT ALL THE PROCESS FROM START TO FINISH TO MAKE SURE THAT THERE'S PROPER SEGREGATION OF DUTIES, PROPER MANAGEMENT REVIEW, RECONCILIATIONS BEING PERFORMED AND MAKING SURE THERE'S ALL THE PROPER SUPPORT FOR ALL OF THOSE ITEMS. SO JUST NOT LOOKING AT THE NUMBERS, WE ALSO LOOK AT THE PROCESS AND MAKE SURE THAT THOSE INTERNAL CONTROLS ARE IN PLACE FOR ALL OF THOSE MAJOR PROCESSES.

GREAT. THANK YOU.

I THINK THAT'S IT FOR ME.

ALL RIGHT. THANK YOU. GOOD.

SO I HAVE I HAVE, YOU KNOW, MY QUESTIONS HAVE ALREADY BEEN ANSWERED.

SO I'M GOING TO HAVE A BUNCH OF COMMENTS HERE, AND THEY'RE ALL GOOD.

AGAIN, THANK YOU TO LINDSEY AND DEBORAH AND EVERYBODY ELSE WHO YOU KNOW, LINDSAY AND DEBORAH WERE THE FACES FOR THIS, BUT THERE'S ALL THE OTHER FOLKS THAT WERE WORKING TO MAKE THIS HAPPEN, AND IT'S JUST A MONUMENTAL UNDERTAKING, AND, YOU KNOW, AS SOON AS YOU FINISH IT, YOU GET TO DO IT AGAIN.

SO THAT'S KIND OF INTERESTING TOO, BUT I APPRECIATE, DEBORAH, THE WAY YOU WERE ABLE TO DISTILL ALL THAT STUFF INTO A FEW SLIDES THAT REALLY CAPTURES THE ESSENCE OF IT.

I ALMOST WISH YOU COULD GIVE THAT PRESENTATION TO ME BEFORE I START READING IT ALL, BUT ANYWAY IT SUMS IT UP FOR US, AND, YOU KNOW, IT KIND OF TESTS WHETHER WE WERE LOOKING AT THE RIGHT STUFF OR NOT.

THE CLEAN AUDIT ASPECT OF IT ALWAYS MAKES ME HAPPY.

I MEAN, THIS IS THE SECOND TIME I'VE BEEN ABLE TO LOOK AT THIS AND YOU KNOW, THAT'S A GREAT THING.

WE CAN BE PROUD OF THAT AND WE ARE PROUD OF THAT, AND, YOU KNOW, IT'S A WHOLE DIFFERENT WORLD IN THERE, IN THOSE AUDITS. YOU KNOW, I WOULD SAY IT'S WHERE THE ARCANE LANGUAGE JUST THRIVES, YOU KNOW, AND WE DO OUR BEST TO WADE THROUGH IT, AND THAT'S WHY WE HAVE QUESTIONS BECAUSE WE CAN'T ALWAYS UNDERSTAND THE TECHNICALITIES OF IT.

NONE OF US ARE ACCOUNTANTS.

SO YOU HAVE TO BE PATIENT WITH US, AND YOU ARE.

I ALSO WANT TO SAY JUST, YOU KNOW, FROM A PRESENTATION STANDPOINT, THE DOCUMENT THOSE CHARTS ARE, YOU KNOW, THERE'S ONLY A FEW OF THEM, BUT THEY REALLY DO HELP THE REST OF US TO UNDERSTAND WHAT'S GOING ON IN THERE AND WHAT THAT MEANS, AND YOU KNOW, TO, YOU KNOW, AND, OF COURSE, DESPITE THAT, I KNOW I HAD A QUESTION ON ONE OF THOSE EVEN LOOKING AT THE GRAPH, I STILL HAD TO SCRATCH MY HEAD, BUT IT GOT ANSWERED, AND THEN FINALLY MORE OF A TECHNICAL COMMENT.

I JUST THINK THIS NEEDS TO BE MENTIONED.

THE PENSION FUNDING PERCENTAGE THAT WE, THAT WE ENJOY, THE HIGH PERCENTAGE OF FUNDING OF THEM IS SOMETHING ALSO A RESULT OF GOOD MANAGEMENT, AND WE APPRECIATE THE GUIDANCE THAT WE GET TO MAKE THAT HAPPEN, AND FRANKLY, THAT'S SOMETHING THAT OUTSIDE INDIVIDUALS, GROUPS, WHATEVER THEY LIKE TO ZERO IN ON THAT AND IN ANY AGENCY, AND WHEN THEY ZERO IN ON OURS, THEY JUST ZERO OUT AND KEEP GOING AND LOOKING FOR SOMEBODY ELSE BECAUSE OURS IS OURS IS SO GOOD.

SO I REALLY APPRECIATE THAT.

ANYWAY. I THINK THAT'S ALL I HAD.

DO WE HAVE ANY QUESTIONS, ANY COMMENTS FROM THE PUBLIC ON THIS ONE? YEAH, WE HAVE A PUBLIC COMMENT.

LET ME PROMOTE THEM.

OKAY.

KELLY, YOU HAVE THREE MINUTES.

THANK YOU. I WANTED TO GO OVER SOME OF THE GOOD POINTS OF THIS BUDGET AND COMPARE IT WITH THE CITY OF FREMONT.

WELL, FIRST, FIRST ONE IS THAT YOU CHANGE THE AUDITOR ABOUT FIVE YEARS AGO, WHICH IS A GOOD PRACTICE.

SO THIS LIKE 6 OR 8 YEARS AGO, YOU HAD A DIFFERENT AUDITING FIRM, AND THAT'S A GOOD PRACTICE.

THE CITY OF FREMONT HAS KEPT STUCK WITH THE SAME AUDITING FIRM FOR 12 YEARS OR MORE, AND THAT HAS COME BACK TO BITE THEM VERY, VERY BADLY BECAUSE THEY'VE HAD HUGE ACCOUNTING IRREGULARITIES.

ALSO, YOU NEVER SEE THAT, IN THE CITY OF FREMONT, YOU NEVER SEE THE AUDITOR SHOW UP AND TALK IN-PERSON AT ANY OF THE MEETINGS,

[00:35:03]

THE OUTSIDE AUDITING FIRM, AND HERE WE DO SEE THE AUDITOR.

SO THAT'S VERY UNUSUAL.

I'M NOT USED TO SEEING THAT, AND THEN ONE WORD OF WARNING ON THIS GOOD GOVERNMENT SEAL OF APPROVAL.

GOOD HOUSEKEEPING BUDGET THING THAT CITY OF FREMONT HAS GOTTEN THAT FOR, YOU KNOW, TEN OR 20 OR 30 YEARS, AND THEY JUST HAD THE REAL SEAL OF APPROVAL CAME WHEN THE STATE OF CALIFORNIA CAME BACK AND TOOK AWAY $30 MILLION A YEAR OF YOU KNOW, REVENUES THAT THEY DIDN'T DIDN'T DESERVE TO BE IN THEIR BUDGET.

SO, YOU KNOW, THIS THE GOOD HOUSEKEEPING SEAL OF APPROVAL HAS VERY LITTLE MEANING.

IT DOESN'T ADD ANYTHING.

YOU NEED GOOS AUDITS, AND NOW NOW LET'S LOOK AT SOME OF THE SHORTCOMINGS IN THIS AUDIT.

OR WELL, NOT THE AUDIT, BUT IN THE REPORTING STRUCTURE.

SO IF YOU LOOK AT THE COMPREHENSIVE ANNUAL FINANCIAL REPORT, IT'S VERY BROAD, VERY GENERAL, VERY AGGREGATED AND DOESN'T BREAK IT DOWN INTO INDIVIDUAL PROJECTS, BUT IF YOU GO AND LOOK AT THE ANNUAL BUDGET, IT DOES BREAK DOWN INTO ANNUAL BUDGETS, BUT IT'S VERY HARD TO FIGURE OUT IF YOU ALLOCATE $150,000 TO REROUTE A ROAD AT MISSION PEAK.

IT TURNS OUT THAT MAYBE THAT MONEY DIDN'T GET SPENT, EVEN THOUGH IT WAS IN THE BUDGET FOR THAT YEAR, AND IT MIGHT GET SPENT, BUT WHEN IT DOES GET SPENT, IT ONLY SHOWS UP AGAINST LIKE A TOTAL SPENDING OVER A 4 OR 5 YEAR PERIOD AND AGGREGATED IT'S NOT AN ANNUAL SPENDING REPORT.

IT'S THE SPENDING FOR THE LAST SEVERAL YEARS FOR THAT PROJECT BUDGET, AND ALSO, YOU KNOW, OF COURSE, WHEN MONEY GOT ALLOCATED FOR NEW TOILETS AND A NEW PARKING LOT THAT HAPPENED IN 2016, AND IT'S STILL NOTHING HAPPENED ON THAT PROJECT.

SO THE BOARD OF SUPERVISORS, THE BOARD OF DIRECTORS ALLOCATES MONEY TO PROJECTS THAT DON'T HAPPEN.

THAT'S A PROBLEM. THANKS.

OKAY. WELL, THANKS FOR THANKS FOR CHECKING IN WITH US AND FOR THOSE COMMENTS.

SO AT THIS POINT, I'M LOOKING FOR A RECOMMENDATION.

A MOTION TO APPROVE THIS AGENDA ITEM.

I WILL MOVE AND ALSO A COMMENT THAT YES, REALLY APPRECIATE.

I HAD OVER A DOZEN QUESTIONS AND THE VERY QUICK REPLY AND EVEN THIS MORNING.

SO THANK YOU VERY MUCH FOR EVERYONE'S WORK, AND YEAH, I HEARTILY MOVE THIS TO THE--A HEARTILY MOTION, A HEARTFELT MOTION.

OKAY, AND A SECOND? A SECOND. YES? YEAH, I'M HAPPY TO SECOND AND I'LL JUST COMMENT.

YOU KNOW, I KNOW THERE'S AT LEAST ONE OTHER GOVERNMENT AGENCY WHOSE FINANCIALS I SPENT A LOT OF TIME LOOKING AT, AND AS FAR AS I CAN TELL, AND IT JUST MAY BE THAT THEY HAVEN'T RELEASED ANY SORT OF PRESS RELEASE, BUT I DON'T THINK THEY'VE RECEIVED THE SAME CERTIFICATE THAT WE HAVE IN TERMS OF EXCELLENCE IN FINANCIAL REPORTING.

SO IT'S NOT AS AUTOMATIC OR AUTOMATED AS ONE MIGHT THINK.

SO YES, I'M HAPPY TO SECOND THAT MOTION.

OKAY. WE HAVE A MOTION AND A SECOND.

ALL IN FAVOR. AYE.

OPPOSED. CARRIES UNANIMOUSLY.

YAY! THANK YOU TO ALL.

YEAH. THAT'S RIGHT.

OKAY. ONWARD.

ONWARD. NOW TO INFORMATIONAL ITEMS NUMBER FIVE, WHICH IS THE UPDATE ON IMPLEMENTATION OF POLICY

[Informational Items]

8.0 ENVIRONMENTALLY SUSTAINABLE PURCHASING.

ALL RIGHT. GOOD MORNING. BOARD.

MY NAME IS JUANCHO FLORES, FACILITY MANAGER FOR OFFICE SERVICES.

I'M HERE TODAY TO TALK ABOUT AND GIVE YOU AN UPDATE ON ENVIRONMENTALLY SUSTAINABLE PURCHASING POLICY 8.0.

SO IN THIS PRESENTATION, WE'LL GO OVER THE JUST KIND OF RECAP OF THE POLICY TALK TO YOU ABOUT THE COMMUNICATION WE'VE DONE AND THE TRAINING AND ALSO GIVE YOU SOME UPDATES ON THE SALES AND SOME OF THE CONVERSION THAT WE WERE DOING AT CENTRAL STORES.

ALSO, I'M GOING TO SHARE SOME RECOGNITION WITH YOU AND WHAT OUR OPPORTUNITIES ARE, WHAT OUR NEXT STEPS THAT WE NEED TO TAKE.

[00:40:06]

SO THE POLICY WAS ADOPTED IN MARCH 2023 BY THE BOARD OF DIRECTORS.

IT'S IN LINE WITH OUR MISSION STATEMENT.

ENVIRONMENTAL ETHIC GUIDES US IN THE GUIDES THE DISTRICT IN ALL OF ITS ACTIVITIES TO HELP REDUCE CONTRIBUTIONS TO GLOBAL WARMING, CLIMATE CHANGE AND ENVIRONMENTAL IMPACTS.

SOME OF THE WAYS WE COMMUNICATED IN THE POLICY IS THROUGH NEW EMPLOYEE ORIENTATIONS.

I ATTEND THOSE ALL OF THEM THAT, YOU KNOW, SINCE THE, SINCE THIS THIS POLICY WAS ADOPTED, A COUPLE OF LEAF MEETINGS, COHORT NUMBER TWO AND COHORT NUMBER THREE.

CENTRAL STORES ADVISORY COMMITTEES WHO MAKE SURE IT'S FRONT AND FORWARD AND IS THE TOPIC OF CONVERSATION IN EACH MEETING THAT WE HAVE.

I'M ALSO PART OF THE 3030 FUNCTIONAL GROUP MEETINGS.

MOSTLY FOCUS ON SUSTAINABLE OPERATIONS TO LOOK AT DIFFERENT WAYS TO HELP OUT ON THAT END FROM A GARBAGE STANDPOINT AND WASTE.

ALSO I'VE ATTENDED OPERATIONS FORUMS CLERK OF FORUMS, AND I'VE ALSO COMMUNICATED WITH PUBLIC WORKS DEPARTMENT TO GET THEM IN LINE WITH THE PURCHASING POLICY.

SOME OF THE TRAININGS I HAD ALSO PART OF THE COMMUNICATIONS ALSO DID ALSO SOME TRAININGS FOR THE LEAF TRAININGS OPERATIONS FORUMS. AGAIN, THE CLERK OF FORUMS JUST TO MAKE SURE THEY'RE BUYING WOOD UTENSILS, RECYCLABLE MATERIALS, NO PLASTIC, SO ON AND SO FORTH. WORKING WITH HR TO GET SUMMITS UP AND RUNNING WHEN IT COMES TO THIS POLICY, AND I'VE BEEN AND THAT SHOULD BE UP AND RUNNING SHORTLY IN THE NEXT, YOU KNOW, MONTH OR SO, AND THEN I HAVE A MEETING WITH PUBLIC WORKS, AND IN THIS MEETING, WE'RE ACTUALLY GOING TO TALK ABOUT WHAT WE CAN DO TO HELP FROM A CENTRAL STORAGE STANDPOINT, WHAT WE COULD DO TO HELP WITH PUBLIC WORKS, TO GET THEM THE MATERIALS THAT THEY NEED THAT FALLS UNDER OUR POLICY.

DOWN THE BOTTOM HERE IS WE HAVE AN EXAMPLE OF A PURCHASING GUIDE.

SO OUR POLICY, AS LONG AS WE MEET OUR MINIMUM REQUIREMENTS, WE'RE MEETING MINIMUM REQUIREMENTS.

RIGHT, BUT WE DEFINITELY WANT TO TAKE IT A STEP FURTHER TO TAKE ON LEADERSHIP OPPORTUNITIES IN THIS SITUATION OR IN THIS EXAMPLE WITH REGARDS TO CLEANING CHEMICALS.

IT MUST BE, YOU KNOW, IT MUST HAVE THE GREEN SEAL LOGO.

SAFER CHOICE OR THE UL ECO LOGO CERTIFICATION, AND THEN WE TAKE IT A STEP FURTHER TO MAKE SURE THAT WHAT WE'RE BUYING IS NON-AEROSOL OR FREE FROM FRAGRANCE AND ALL THE GOOD STUFF HERE.

PACKAGING'S GOT TO BE RECYCLABLE AND ALL THAT GOOD STUFF.

OKAY, SO SALES UPDATES GIVING YOU AN UPDATE.

SO IT'S APPLES TO APPLES COMPARISON.

SO WE'RE GOING TO TAKE 2023 FULL YEAR 2023, AND WE'RE GOING TO BE FOR 2024 FULL YEAR 2023 ECO FRIENDLY PRODUCTS.

THAT FALLS UNDER THE POLICY.

WE SOLD ABOUT 4200 UNITS AND ABOUT $450,000, $443,000, TO BE EXACT.

NON ECO FRIENDLY PRODUCTS.

WE SOLD ABOUT 6500 UNITS AND $500,000 IN SALES.

WE HAVE THE YEAR TO DATE NUMBERS THERE AND WE'RE FORECASTING TO BE 5% INCREASE FOR ECO FRIENDLY UNITS BY THE END OF THE YEAR AT LEAST. CAN I ASK A QUESTION HERE BEFORE WE GO OFF OF THIS SLIDE? WHEN YOU SAY WE SOLD, EXPLAIN WHAT THAT MEANS.

OKAY. SO USING SOME TECHNICAL LANGUAGE HERE, THAT MAY NOT BE OBVIOUS TO THE REST OF US.

SURE. SO SOME HERE, BECAUSE I'M IN CHARGE OF CENTRAL STORES, AND ONE WAY FOR US TO TRACK OUR SPENDING IS THROUGH CENTRAL STORES, WHERE WE SPEND ABOUT $1 MILLION WORTH OF DOLLARS GOING TOWARDS SUPPLIES.

SO THAT'S THE FIRST POINT OF FIRST PLACE THAT WE FOCUSED ON IS HOW DO WE GET TRACKING IN LINE? SO FROM A SALES STANDPOINT AND FROM THE UNIT CONVERSION STANDPOINT, GOING FROM NON-ECO TO ECO.

HOPEFULLY THAT MAKES SENSE. IT'S BECAUSE YOU OPERATE AS AN ENTERPRISE FUNCTION RIGHT.

YES BECAUSE ALL THE ALL THE DEPARTMENTS AND DIVISIONS ARE GETTING STUFF FROM YOU AND THEY'RE PAYING FOR IT BASICALLY.

CORRECT. YEAH. SO YEAH, AND THEN I'LL GET DOWN THE LINE LATER ON AND TALK ABOUT THAT, HOW WE CAN ENCOURAGE MORE PEOPLE OR MORE OF OUR STAFF TO BUY THROUGH CENTRAL STORES.

[00:45:10]

YEAH. GOOD. OKAY. THANKS.

SO WE'RE LIKE OUR AMAZON AND OUR STORE IS A STORE WITHIN THE AGENCY.

RIGHT. SO PEOPLE BUY FROM US.

SO ECO FRIENDLY.

SO WE'RE LOOKING AT 5% INCREASE TO 4481 UNITS.

WHEN I SAY UNITS LIKE A BOX OF GLOVES OF 50 IS ONE UNIT, RIGHT.

SO SALES OF 550,000 NON-ECO.

THERE'S AN INCREASE ALSO 7% OF 6900 UNITS, BUT A SALES REDUCTION OF 1% TO $506,000. LET ME KIND OF TALK ABOUT THAT A LITTLE BIT.

SO WHAT YOU'RE SEEING HERE WITH THE NON ECO PRODUCT IS COULD BE ATTRIBUTED TO MORE PEOPLE BUYING SMALLER ITEMS, LESS EXPENSIVE ITEMS AT CENTRAL STORES.

INSTEAD OF GOING TO AMAZON TO BUY A BOX OF PENS THEY'LL COME TO CENTRAL STORE.

BUY THEM. RIGHT, SO THE INCREASE IN UNITS GO UP, BUT THE SALES GO DOWN.

ON THE FLIP SIDE OF THAT, ON THE ECO FRIENDLY, WE'RE INCREASING ON BOTH.

RIGHT. INCREASE IN SALES OF 24%, MEANING WE'RE ATTRIBUTING THAT TO OUR STAFF BUYING MORE HIGHER TICKET MERCHANDISE.

MORE TOILET PAPER.

LET'S SAY MORE SUPPLIES.

THAT'S MORE EXPENSIVE.

LIKE RADIOS.

WE USED TO SELL MONITORS, BUT NO LONGER, BUT BUT, YEAH, HIGHER TICKET ITEMS THAT CONTRIBUTED TO THAT.

SO WE'RE ALSO RECOGNIZED BY THE COUNTY OF ALAMEDA AS A GREEN BUSINESS CERTIFIED.

SO THEY TAKE FACILITIES AND THEY CERTIFY FACILITIES, NOT JUST THE AGENCY ITSELF.

SO THIS BUILDING IS GREEN BUSINESS CERTIFIED, AND IT KIND OF TALKS ABOUT THAT A LITTLE BIT.

WE IMPLEMENTED PRACTICES TO PREVENT POLLUTION AND REDUCE WASTE, SAVE WATER, OPERATE MORE SUSTAINABLY AND EXCEED THE REGULATORY REQUIREMENTS, AND THAT'S A FIVE YEAR YOUR CERTIFICATION AND DOESN'T EXPIRE TILL 2027.

THEY LOOK AT ITEMS LIKE HVAC MAINTENANCE FOR THE BUILDING.

LED LIGHTING USE LIKE THIS ROOM IS ALL LED OUR WATER FLOW USAGE.

IF WE USE SMART CONTROLLERS FOR OUR IRRIGATION, WHICH WE DO.

WE ALSO HAVE OUR BIG SOLAR ARRAY UP ON THE ROOF IN THIS BUILDING, AND ALSO THEY LOOK AT IF WE USE ENERGY STAR EQUIPMENT FOR OUR COPIERS AND PRINTERS AND COMPUTER DEVICES.

SOME OF THE OPPORTUNITIES THAT WE'RE THAT WE NEED TO FOCUS ON AND DO A DEEP DIVE ON IS CULTURE IS TRYING TO GET OUR STAFF TO, TO LOOK MORE OF INSTEAD OF CONVENIENCE, LOOK AT THE IMPACT THAT WE HAVE ON ANYTHING THAT WE PURCHASE.

MOST LIKE, LIKE P CARDS OR OUR DESIGN GROUP WORKING WITH THEM TO MAKE SURE THAT THEY'RE BUYING PRODUCTS THAT FITS INTO THIS, TO THIS POLICY.

ONE OF THE BIG PURCHASES THAT WE'RE MAKING IS ACROSS THE STREET WITH WITH OUR NEW BUILDING, WE'RE MAKING SURE THAT ALL OF THE FURNITURE THAT WE'RE BUYING THERE MEETS OR EXCEEDS THE POLICY THE GUIDELINES OF THE POLICY.

EXPANDING PRODUCT AND MATERIAL INVENTORY.

CURRENTLY, WE HAVE ABOUT 55% OF OUR PRODUCTS AT CENTRAL STORES.

AS A GREEN PRODUCT, WE CONSIDER IT A GREEN PRODUCT BASED ON THE POLICY.

WE WANT TO EXPAND THAT A LITTLE BIT MORE, AND OUR STAFF, AND JEFF COLANTUONO IS A BIG PROPONENT TO THIS IS HE'S ALWAYS LOOKING FOR ALTERNATIVE. SO IF WE FIND A GREEN ALTERNATIVE, WE'RE GOING TO DELETE THE OTHER NON-GREEN ALTERNATIVE ONCE IT SETTLES DOWN.

WE ALSO HAVE AN OPPORTUNITY IN TRACKING AND MONITORING OF ALL PURCHASES BY THE DISTRICT.

SO NEXT STEPS CONTINUE TO SEEK ENVIRONMENTALLY FRIENDLY ALTERNATIVES.

WHEN WE DON'T HAVE AN ALTERNATIVE, FOR EXAMPLE, WE'LL MAKE SURE THAT THE PRODUCT THAT WE DO BUY IS LONG LASTING AND DURABLE TO LAST US FOR YEARS.

WE'LL CONTINUE TO TRAIN NEW AND EXISTING STAFF.

[00:50:03]

WE ALSO NEED TO DEVELOP MECHANISMS FOR TRACKING AND MONITORING COMPLIANCE WITH POLICY.

WE STARTED OFF AT CENTRAL STORES WHERE WE CATEGORIZED GREEN PRODUCT VERSUS NON-GREEN PRODUCT, AND SO WE COULD RUN A REPORT THAT WILL SHOW US WHAT OUR SALES ARE AND SALES THROUGH FOR EACH.

WE ALSO NEED TO SET UP BIANNUAL MEETINGS WITH MAST, FLEET MANAGEMENT, AND DESIGN AND CONSTRUCTION TO MAKE SURE EVERYONE'S ALIGNED WITH THE PURCHASING POLICY. JUST FOR KICKS HERE, I JUST ADDED SOME GREEN PRODUCT EXAMPLES.

YOU MAY HAVE THIS PEN IN FRONT OF YOU TODAY.

IT'S MADE OUT OF WATER BOTTLES.

89% RECYCLED, AND THE INK IS REFILLABLE AND AVAILABLE AT CENTRAL STORES.

OUR CALENDARS, OUR POPULAR CALENDARS ARE 100% POST-CONSUMER RECYCLED, YOU SAW INK, WE HAVE SOME CUTLERY.

WE ENCOURAGE THIS IS WHERE I COME IN AND TALK TO OUR ADMIN TEAMS TO MAKE SURE THAT THEY HAVE A PARTY TO MAKE SURE THAT EVERYTHING'S RECYCLABLE. CLEANER EXAMPLE ECO LOGO IN BIG BOTTLES.

HERE'S ANOTHER EXAMPLE OF A LIQUID LAUNDRY LIQUID DISH LIQUID AND A GLASS CLEANER, AND WITH THAT, I'LL TAKE SOME QUESTIONS.

ALL RIGHT. I'M SURE WE HAVE SOME WHO WANTS TO GO FIRST? I'M HAPPY TO GO FIRST. SURE.

THIS IS REALLY GREAT.

THANKS SO MUCH FOR BRINGING THIS, YOU KNOW, UPDATE ON THE IMPLEMENTATION FROM MARCH 2023.

SO, YOU KNOW, WE'RE, WHAT, A YEAR AND A HALF INTO THIS AND IT SEEMS LIKE WE'VE ALREADY MADE QUITE A BIT OF PROGRESS, AND, YOU KNOW, I'VE BEEN SPENDING A LOT OF TIME THINKING ABOUT, YOU KNOW, HOW EAST BAY REGIONAL PARK DISTRICT HELPS PROVIDE, YOU KNOW, ECONOMIES OF SCALE TO THE TO ALAMEDA AND CONTRA COSTA COUNTIES IN TERMS OF WHAT WE PROVIDE, AND I THINK A LOT ABOUT OUR PARTNERSHIPS, AND I'D WANT TO ENCOURAGE, YOU KNOW, AS WE THINK ABOUT THIS SECOND CENTURY DISTRICT PLAN, YOU KNOW, IS THERE AN OPPORTUNITY FOR OUR CENTRAL STORES TO POTENTIALLY EXPAND TO HELP SOME OF OUR DIFFERENT, YOU KNOW, CITY AND OTHER SPECIAL DISTRICT PARTNERS? AND I'M THINKING ABOUT, YOU KNOW, ON THE WATER AGENCY SIDE, ALL OF THE WATER AGENCIES IN THE EAST BAY.

HAVE DIFFERENT CONSORTIUMS WHERE THEY GET TOGETHER AND IF THEY NEED TO ALL PURCHASE A SPECIFIC YOU KNOW, CHEMICAL LIKE SOME TYPE OF CHLORIDE TO BE USED AS PART OF THE PROCESS FOR MAKING THE WATER YOU KNOW, POTABLE AND DRINKABLE.

THEY'LL GET TOGETHER AND PURCHASE IN LARGE BATCHES THESE CHEMICALS, AND IT MIGHT BE, YOU KNOW, TEN DIFFERENT WATER AGENCIES WORKING TOGETHER TO REDUCE THE OVERALL COST BY BUYING TOGETHER, AND, AND I WONDER, YOU KNOW, BECAUSE I ALWAYS THINK ABOUT HOW, YOU KNOW, ON PLEASANTON RIDGE CERTAINLY WE, YOU KNOW, MANAGE AND STEWARD 9000 OVER 9000 ACRES ON PLEASANTON RIDGE, BUT CITY OF PLEASANTON ALSO HAS SOME ACREAGE ON PLEASANTON RIDGE, FOR EXAMPLE, AUGUSTIN BERNAL'S 247 ACRES, AND I HAVE TO IMAGINE THAT WE MAY HAVE SOME KNOWLEDGE OF, YOU KNOW, ENVIRONMENTALLY FRIENDLY PRODUCTS THAT HELP TO MANAGE YOU KNOW, LANCE, ALL OF OUR PARKS AND ALL OF OUR OPEN SPACES AND LARGE ACREAGE, AND IT MAY BE, YOU KNOW, CITY OF PLEASANTON HAS SO MANY DIFFERENT THINGS THAT THEY'RE DOING, INCLUDING, YOU KNOW, BEING A PART OF THIS WATER CONSORTIUM FOR THE CHEMICALS THAT MAYBE THEY MAY NOT HAVE AS MANY BEST PRACTICES IN REGARDS TO THE 247 ACRES THAT THEY MANAGE, AND SO WHEN I THINK ABOUT ECONOMIES OF SCALE, YOU KNOW, THE SECOND CENTURY DISTRICT PLAN, THINKING ABOUT, YOU KNOW, HOW WE MIGHT BE ABLE TO HELP SUPPORT SOME OF THESE OTHER AGENCIES THAT ARE ALSO MANAGING OPEN SPACE AND MANAGING PARKS THAT MAYBE DON'T HAVE AS MUCH TIME TO THINK ABOUT? YOU KNOW WHAT I THINK? WHEN I WAS LISTENING TO YOU, I WAS THINKING ABOUT THIS YOU KNOW, A BOOT PICK WITH RECYCLED PLASTIC HANDLE OR THERE'S ANOTHER ONE, THE MINT RODENT REPELLENT.

YOU KNOW, THINGS LIKE THIS COULD BE HELPFUL TO SOME OF THESE OTHER AGENCIES THAT MAYBE HAVEN'T BEEN ABLE TO SPEND THE TIME TO THINK ABOUT THAT ECONOMIES OF SCALE THAT WE HAVE.

SO YOU KNOW, I THINK AS WE WORK ON THAT SECOND CENTURY DISTRICT PLAN INTERNALLY, I THINK THIS IS ONE AREA WHERE CENTRAL STORES COULD POTENTIALLY PROVIDE SOME INPUT THAT WOULD BE REALLY IMPACTFUL FOR OUR PARTNERS.

OKAY. DEFINITELY, WE'LL KEEP THAT IN MIND.

SO. YEAH.

THIS IS GREAT.

THANK YOU. ONE THING I MEAN, CENTRAL STORES HAS BEEN THE HEART OF THE PARK DISTRICT FOR MANY YEARS NOW, AND IT'S A GREAT CONCEPT AND I'M GLAD IT'S STILL ALIVE AND DOING WELL, AND I'M REALLY LOVE THAT YOU'RE LOOKING FORWARD TRYING TO GET MORE ECO.

WHAT REALLY INTERESTS ME, THOUGH, IS IT SAYS HERE YOU SECURED A NEW ELECTRIC HEAVY DUTY BOX TRUCK.

[00:55:07]

DO YOU HAVE IT NOW? NOT YET. IT'S ON ITS WAY IS WHAT I WHAT I WAS TOLD WHEN I SPOKE TO JASON.

SO, BASICALLY, WE HAVE THIS REALLY DIRTY DIESEL POWERED BOX TRUCK THAT WE HAVE.

THAT'S YEAH, TECHNOLOGY WAS REALLY BAD AND IT'S ONE OF THE THINGS THAT WE'VE BEEN ASKING FOR, FOR LIKE MAYBE A COUPLE OF YEARS NOW AND, AND IT'S COMING TO FRUITION.

I WAS JUST TOLD THAT DURING OUR SAFETY FAIR THAT IS COMING.

I DON'T HAVE AN ETA.

OKAY. YES. VERY COOL.

I'M REALLY EXCITED TO SEE THAT OPERATE AND SEE WHAT THE RANGE IS AND ALL THAT GOOD STUFF.

YES, AND THEN WHERE ARE WE? I KNOW WE'RE BOTH DIRECTOR WAESPI AND I HAVE BEEN ASKING TO FIND WAYS THAT WE CAN GET AWAY FROM OUR PLASTIC LINERS AND OUT IN THE FIELD.

ARE WE MAKING ANY PROGRESS THERE? IT'S A LOT OF RESEARCH, THEN.

FIRST OF ALL, I WOULD LIKE TO SAY OUR PLASTIC LINERS ARE MADE FROM RECYCLED PLASTIC.

FIRST OF ALL. RIGHT, AND IT'S RECYCLABLE.

I THINK I DON'T WANT TO SPEAK ABOUT, YOU KNOW, OPERATIONS, BECAUSE THAT'S REALLY NOT MY WORLD, BUT I DO WHEN I GO INTO, FOR EXAMPLE, THE 3030 WORK GROUP, WHEN WE TALK ABOUT SUSTAINABLE OPERATIONS, I PUT MY INPUT IN THERE.

LIKE, FOR EXAMPLE, HOW DO WE IF WE CAN'T REPLACE A PLASTIC PRODUCT, HOW CAN WE REDUCE ITS CONTENT? MEANING FOR EXAMPLE, MUD MITTS WE HAVE THE BEST MUD MITTS IN ALL OF ALAMEDA AND CONTRA COSTA COUNTY.

I BELIEVE VERY THICK PRODUCT.

RIGHT. HOW COULD WE REDUCE IN HALF THE MILLS HOW THICK IT IS? SO IN THAT WAY, IF WE COULD DO IT 50% MILLS, YOU KNOW, THICKNESS, WE'VE JUST REDUCED 50% OF THE PLASTIC, RIGHT.

WITHOUT REDUCING THE AMOUNT OF UNITS.

RIGHT. IT'S A TOUCHY SUBJECT, AND I'M ALSO LOOKING INTO THOSE KIND OF THINGS.

AS FAR AS LINERS, WE DO HAVE COMPOSTABLE LINERS NOW AT CENTRAL STORES, AND WE'VE TESTED THEM.

IT DOESN'T IT DOESN'T STAND UP TO THE DAY TO DAY OPERATIONS THAT THE OPERATIONS FIELD NEEDS, BUT THEY CAN USE IT LIKE IN OFFICES.

FOR EXAMPLE, HERE, IF YOU LOOK IN OUR IN OUR COMPOSTABLE LINER HERE WILL BE GREEN BECAUSE THAT'S A RECYCLABLE PRODUCT.

GREAT. THANK YOU, BUT WE HAVE OUR EYE ON PLASTIC, AND I THINK THAT'S GOING TO BE MORE OF AN OPERATION CHANGE THAN ANYTHING.

THAT'S I MEAN THAT'S OUR THAT'S OUR HEAVIEST USE, AND THEY ARE I MEAN THOSE BAGS ARE CONVENIENT.

THEY YOU GOT TO LIFT UP.

THEY ARE TRASH.

YEAH. ONE OF THE THINGS THAT JEFF CHANGED ALSO.

SO WE CAME UP WITH BEAR SAVERS.

I'M NOT SURE IF YOU HEARD ABOUT THOSE.

SO THE BEAR SAVER LINERS ARE DIFFERENT SIZE THAN OUR NORMAL LINERS, AND WE'RE HANDLING, YOU KNOW, IF YOU USE THE BIGGER ONES AND THE SMALLER CAN, OBVIOUSLY YOU'RE WASTING PLASTIC, RIGHT? SO JEFF WAS ABLE TO FIND A HAPPY MEDIUM.

SO WE WORK WITH THE RECYCLING TEAM TO COME UP WITH A LINER THAT ONE SIZE FITS ALL.

SO WE GOT RID OF AT LEAST THAT PART.

GREAT. THANK YOU. KEEP UP THE GOOD WORK.

OKAY. THANK YOU.

WELL. JUANCHO, THANK YOU SO MUCH FOR THIS PRESENTATION.

I FEEL LIKE THEY PICKED THE RIGHT PERSON TO DO THIS PRESENTATION TO US, BECAUSE YOU ARE CLEARLY THE EXPERT, AND YOU, YOU YOU'RE YOU'RE YOU'RE ALSO PROJECTING A PASSION FOR THE WORK THAT THIS PARTICULAR.

I KNOW YOU DO A LOT OF DIFFERENT STUFF, BUT THIS ASPECT, I MEAN, YOU REALLY SOUND LIKE YOU WERE NOT ONLY UP ON THINGS, BUT TRYING TO CONTINUE TO BE UP ON THINGS AND BE AWARE OF NEW PRODUCTS, WAYS THAT WE CAN BE YOU KNOW INCREASE OUR LEVEL OF SUSTAINABILITY, SUSTAINABLE PRACTICES, AND SO I THINK THAT'S WHAT WE'RE ALL LOOKING FOR, AND, YOU KNOW, IT'S ONE OF THE THINGS THAT MAKES, YOU KNOW, IN ADDITION TO OUR FINANCIAL FUNCTIONS, Y OU KNOW, IT'S IN OUR MISSION STATEMENT ABOUT, YOU KNOW, ENVIRONMENTAL ETHIC AND EVERYTHING THAT REALLY THAT'S VERY ATTRACTIVE TO ME, AND YOU KNOW, IT MAKES ME BE PROUD TO BE PART OF THIS ORGANIZATION, AND, YOU KNOW, AND YOU'RE DOING YOUR THING, YOU KNOW, FROM THE OUTSIDE TO THE INSIDE.

I MEAN, IT'S ALL BEING COVERED, AND I THINK YOU MENTIONED SOME OTHER INDIVIDUALS THAT ARE WORKING FOR YOU THAT ALSO ARE HELPING YOU OUT AND DOING GREAT THINGS.

[01:00:06]

SO YOU KNOW, AND WHAT'S HELPING US IS THAT THE WORLD IS CHANGING AND WE'RE BASICALLY GOING ALONG WITH IT, MAYBE EVEN GETTING OUT A LITTLE BIT AHEAD BUT THESE PRODUCTS WEREN'T AVAILABLE 5 OR 10 YEARS AGO.

MANY OF THEM, RIGHT? SO THAT HELPS.

YOU KNOW, OUR DESIRE TO BE MORE SUSTAINABLE IS AIDED BY THE IMPROVEMENTS THAT ARE BEING MADE OUT THERE AND HOW THINGS ARE MADE.

I JUST CAME FROM A NATIONAL RECREATION AND PARKS CONFERENCE.

WHAT WAS THAT LAST WEEK OR THE WEEK BEFORE AND THE EXHIBIT HALL, WHICH IS WAY BIGGER THAN A FOOTBALL FIELD.

HAD A LOT OF PRODUCTS LIKE THAT IN THERE THAT PARKS AND RECREATION PROGRAMS ARE NOW USING.

YOU KNOW IF YOU CAN FIGURE OUT A WAY TO GET TO ONE OF THOSE, ONE OF THOSE EXHIBIT HALLS SOMETIME YOU KNOW, YOU'RE GOING TO LEARN A LOT AND YOU GET TO TALK TO THE, THE MANUFACTURERS AND THE VENDORS, TOO.

SO BUT ANYWAY, KEEP IT UP.

GOOD JOB, AND WE APPRECIATE, YOU KNOW, YOUR WORK, AND THANKS FOR THE PRESENTATION.

SO JUST TO CLOSE IT OFF REAL QUICK IF I BELIEVE YOU VISITED CENTRAL STORES, BUT FROM THE OUTSIDE, I ENCOURAGE YOU TO GO IN. YOU WILL SEE THE WAY WE MERCHANDISE CENTRAL STORES.

WE'RE MAKING IT MUCH EASIER FOR OUR FIELD STAFF TO GO THERE AND SHOP.

WE ALSO IDENTIFIED EACH GREEN PRODUCT THAT WE HAVE ON THE SHELVES WITH A GREEN LEAF LOGO TO HELP THEM IDENTIFY ALSO THAT PART.

SO HOME DEPOT AND LOWE'S DOESN'T HAVE ANYTHING ON US WHEN IT COMES TO MERCHANDIZING.

SO THAT'S IT.

THANK YOU. THANK YOU VERY MUCH, AND NOW WE'RE MOVING ON TO NUMBER SIX, WHICH IS ANNOUNCEMENTS.

DO WE HAVE ANY ANY PUBLIC COMMENTS? OKAY. LET'S DO THAT.

KELLY, YOU HAVE THREE MINUTES.

THANK YOU. YEAH. IT SEEMS LIKE THE THIS ENVIRONMENTALLY SUSTAINABLE PURCHASING IS NARROWLY DEFINED, NARROWLY DEFINED AS YOU KNOW WHAT IS IT? YOU KNOW, THE OPERATING PURCHASES AND NOT CAPITAL EXPENSES.

SO WE'RE, YOU KNOW, WHEN WE TALK ABOUT SUSTAINABLE PURCHASING, WE'RE LIMITING OURSELVES TO, LIKE, PENCILS AND PAPERCLIPS AND STUFF AND GLOVES OR WHATEVER, AND , YOU KNOW, WHEN I SEE THE FACE OF WHEN PEOPLE SEE EBRPS, THEY'RE DRIVING DOWN THE ROAD AND THEY SEE A GREEN PICKUP TRUCK, AND THAT PICKUP TRUCK IS NOT ELECTRIC, AND IT'S NOT EVEN A HYBRID, AND THERE IS NO PLAN TO MAKE IT A HYBRID OR TO MAKE IT SUBSTANTIALLY MORE, YOU KNOW, SUSTAINABLE.

SO THERE'S A LOT OF THINGS ON THE CAPITAL PURCHASING SIDE, AND ON THE BIGGER PICTURE OUTSIDE OF THIS, YOU KNOW, THE PENCILS AND PAPER CLIPS THAT COULD BE DONE TO MAKE THIS OPERATION MORE SUSTAINABLE, AND A LOT OF THE EXPENSES ARE NOT HAPPENING AT THE PENCILS AND PAPERCLIPS LEVEL.

THEY'RE HAPPENING ELSEWHERE IN THE BUDGET.

SO, YOU KNOW, THOSE NEED SOME ATTENTION, TOO.

THANK YOU. ALL RIGHT.

THANK YOU, KELLY, AND NOW WE MOVE ON TO ITEM SIX WHICH IS ANNOUNCEMENTS.

I DON'T KNOW IF WE HAVE ANY ANNOUNCEMENTS OR NOT.

PROBABLY NOT. OKAY, AND SO OUR FINAL ITEM IS ADJOURNMENT.

WE ARE ADJOURNING AT 11:36.

THANK YOU VERY MUCH TO ALL.

* This transcript was compiled from uncorrected Closed Captioning.