[Roll Call] [00:00:04] WELL, GOOD MORNING AND WELCOME TO THE BOARD FINANCE COMMITTEE MEETING OF THE EAST BAY REGIONAL PARK DISTRICT. WE'RE MEETING TODAY ON APRIL 8TH, AND WE'RE STARTING AT 10:35. MADAM CLERK, WOULD YOU TAKE THE ROLL, PLEASE? THANK YOU. DIRECTOR ECHOLS. PRESENT. DIRECTOR MERCURIO. HERE. DIRECTOR WAESPI. HERE. ALL MEMBERS ARE PRESENT. THANK YOU. ALL RIGHT. OUR FIRST ITEM OF BUSINESS TODAY IS THE APPROVAL OF THE MINUTES OF THE JANUARY 14TH AND FEBRUARY 11TH MEETING. [Approval of Minutes] IF IT'S OKAY WITH THE COMMITTEE, LET'S TAKE THEM IN AGGREGATE, AND I'LL ACCEPT A MOTION TO APPROVE BOTH OF THEM. SO MOVED. SECOND. WE HAVE A MOTION AND A SECOND, ANY PUBLIC COMMENTS? THERE ARE NO PUBLIC COMMENTS. GREAT. THANK YOU. HEARING NO FURTHER DISCUSSION. ALL IN FAVOR SIGNIFY BY SAYING AYE. AYE. MOTION PASSES UNANIMOUSLY. WE'LL MOVE NOW TO PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA. [Public Comments on Items Not on the Agenda] MADAM CLERK, ANYBODY IN THE PUBLIC? YES, WE HAVE ONE PUBLIC COMMENT. SHAUN ANDERSON. NO. IT'S OKAY. WELCOME, SHAUN. OH. DIRECTOR MERCURIO AND DIRECTOR ECHOLS. AND THANK YOU FOR LISTENING TO ME TODAY. MY NAME IS SHAUN ANDERSON AND I'M THE CHAIR OF THE DEFERRED COMPENSATION ADVISORY COMMITTEE. I WANT TO BEGIN WITH WHY THIS COMMITTEE MATTERS. THE PARK DISTRICT SUPPORTS THE HEALTH AND WELL-BEING OF THE PUBLIC EVERY DAY. IN A DIFFERENT BUT VERY REAL WAY, THE DEFERRED COMPENSATION ADVISORY COMMITTEE HELPS SUPPORT THE FINANCIAL WELL-BEING OF DISTRICT EMPLOYEES AND RETIREES. FOR MANY EMPLOYEES, THIS PLAN IS ONE OF THE MOST. ARE YOU REFERRING TO ITEM 4.B? I AM NOT. NO? NO. GO AHEAD THEN. PARDON US FOR INTERRUPTING. QUITE ALL RIGHT. THE PARK DISTRICT SUPPORTS THE HEALTH AND WELL-BEING OF THE PUBLIC EVERY DAY. IN A DIFFERENT, BUT VERY REAL WAY, THE DEFERRED COMPENSATION ADVISORY COMMITTEE HELPS SUPPORT THE FINANCIAL WELL-BEING OF DISTRICT EMPLOYEES AND RETIREES. FOR MANY EMPLOYEES, THIS PLAN IS ONE OF THE MOST IMPORTANT TOOLS THEY HAVE TO PREPARE FOR RETIREMENT, AND THE COMMITTEE EXISTS TO HELP ENSURE OVERSIGHT REMAINS INFORMED, RESPONSIBLE, AND CENTERED ON THE PEOPLE WHO ACTUALLY PARTICIPATE IN IT. THAT IS WHY I'M HERE TODAY. THIS COMMITTEE WAS CREATED AS A FIVE MEMBER BODY MADE UP OF PLANNED PARTICIPANTS WITH SUPPORT FROM BENEFITS AND FINANCE STAFF. THAT ORIGINAL STRUCTURE MATTERED. IT REFLECTED A DELIBERATE CHOICE THAT THE PEOPLE HELPING OVERSEE THIS PLAN SHOULD BE THE PEOPLE WHO ACTUALLY PARTICIPATE IN IT. THIS WORK ALSO CARRIES FIDUCIARY RESPONSIBILITY AND POWERS A FIDUCIARY, AND SO ARE WE AS A COMMITTEE. THAT IS WHY THE COMMITTEE IS ALWAYS TAKING TRAINING SERIOUSLY. MY CONCERN IS THAT THE NEWER CHARTER REVISIONS FROM FINANCE AND LEGAL MOVE AWAY FROM THAT ORIGINAL PARTICIPANT CENTERED STRUCTURE. WHEN THE PROCESS BEGAN, THE UNDERSTANDING REPORTED BACK TO THE DEFERRED COMP COMMITTEE WAS THAT THE FINANCE COMMITTEE WANTED TO CHARTER A MUTUALLY AGREED UPON BY STAFF AND THE DEFERRED COMP COMMITTEE, WHILE PRESERVING THE FIVE MEMBER STRUCTURE AND ALLOWING ANY ADDED MANAGEMENT ROLES ONLY AS INFORMATIONAL OR NON-VOTING POSITIONS. BUT THE LATER REVISIONS APPEAR TO GO FURTHER. THEY SHIFT TOWARDS GREATER MANAGEMENT AND LEGAL PRESENCE, AND IT WAS STATED THAT CERTAIN MANAGEMENT ROLES SHOULD CARRY GREATER WEIGHT BECAUSE OF TIDAL EXPERIENCE AND INSTITUTIONAL POSITION, EVEN THOUGH THOSE SAME ROLES WOULD NOT NEED TO PARTICIPATE IN THE PLAN. LEGAL HAS AN OUTSIDE OPINION ABOUT PLAN MANAGEMENT, BUT WILL NOT RELEASE IT TO THE COMMITTEE, AND I FAIL TO UNDERSTAND THE PURPOSE OF WITHHOLDING THIS INFORMATION FROM THE VERY FIDUCIARIES. RESPECTFULLY, ALL OF THIS MOVES AWAY FROM THE PURPOSE OF THE COMMITTEE. PARTICIPANT REPRESENTATIVES ARE NOT SYMBOLIC SEATS. THEY ARE THE PEOPLE THIS COMMITTEE IS SUPPOSED TO SERVE, BOTH PRESENT AND PAST. MY REQUEST IS SIMPLE. CAN YOU PLEASE CLARIFY IN THE RECORD WHERE THESE LATEST COMPOSITION CHANGES WERE DIRECTED BY THE FINANCE COMMITTEE, AND IF THEY WERE NOT, PLEASE REAFFIRM THE EARLIER DIRECTION TO PRESERVE THE PARTICIPANT CENTERED FIVE MEMBER VOTING STRUCTURE AND KEEP ANY ADDED MANAGEMENT OR LEGAL ROLES CLEARLY NON-VOTING. THANK YOU. THANK YOU. THANK YOU. THERE IS NO MORE PUBLIC COMMENT. ALL RIGHT. THEN WE'LL MOVE TO OUR ACTION ITEMS. AND OUR FIRST ACTION ITEM IS THE RECOMMENDATION OF THE BOARD OF DIRECTORS TO AWARD A CONTRACT FOR CREDIT CARD MERCHANT SERVICES. [Action Items] WELCOME, KATIE. WE HAVE A BIT OF A TECHNICAL DIFFICULTY, SO JUST BEAR WITH US FOR A SECOND. IN THE MEANTIME, WHICH PARK IS THIS? ON OUR SCREEN? [00:05:01] OH, NEVER MIND, WE'RE SHOWING DIFFERENT THINGS. IT'S LAKE CHABOT, I THINK, IF I'M NOT MISTAKEN. OKAY THIS IS ALL SET UP. GOOD MORNING, BOARD FINANCE COMMITTEE MEMBERS, CHAIR WAESPI. JUST TO PREVIEW, I'M GOING TO BE UP HERE FOR ALL THREE OF THE PRESENTATIONS. UNFORTUNATELY, BOTH JEN AND KAREN ARE OUT TODAY. SO YOU'LL HAVE ME FOR THIS ROUND OF PRESENTATION. SO BEAR WITH ME AS I JUST GOT THIS INFORMATION RECENTLY. OKAY, SO OUR FIRST AGENDA ITEM 4.A IS THE RECOMMENDATION TO THE BOARD OF DIRECTORS TO APPROVE AND EXECUTE A CONTRACT WITH EXPITRANS INC CREDIT CARD MERCHANT SERVICES. SO A LITTLE BIT OF BACKGROUND ON THIS AS WE KICKED OFF THE ERP IMPLEMENTATION PROJECT WITH WORKDAY AND TELLER CAN/AM WHO WILL HANDLE OUR POINT OF SALE. WE IDENTIFIED THAT WE NEEDED TO CONSOLIDATE OUR MERCHANT CREDIT CARD SERVICES PROCESSING UNDER ONE VENDOR. OUR CURRENT ENVIRONMENT IS FRAGMENTED ACROSS MULTIPLE SYSTEMS. WE HAVE WELLS FARGO PROCESSING OUR VENTEK AND RESERVEAMERICA TRANSACTIONS. WE HAVE CLARITI. OUR TEMPORARY ACCESS PERMIT SOFTWARE IS PROCESSED THROUGH CYBERSOURCE, PAYMENTS ARE THEN SENT TO US VIA WELLS FARGO. AND THEN ACTIVENET PROCESSES CREDIT CARD PAYMENTS AT OUR STAFFED PARK LOCATIONS AND FOR VARIOUS RESERVATION TRANSACTIONS. AND THEN THEY SEND US REMITTANCES DIRECTLY AFTERWARDS AND DOESN'T GO THROUGH WELLS FARGO. THIS LIMITS OUR REPORTING CAPABILITIES AND CONSISTENCY AS WE ARE OPERATING IN MULTIPLE SYSTEMS AND FORMATS VARY. THE CURRENT VENDORS OFFER LIMITED HARDWARE SUPPORT FOR THE CREDIT CARD TERMINALS, WHICH THEN REQUIRES OUR IT STAFF TO ASSIST IN TROUBLESHOOTING AND HARDWARE INSTALLATION, DIVERTING RESOURCES FROM OUR CORE FUNCTIONS. ALSO, THERE'S SIGNIFICANT EFFORT REQUIRED FROM BOTH FINANCE STAFF AND IT STAFF TO MONITOR AND MAINTAIN PAYMENT CARD INDUSTRY STANDARDS, WHICH IS THE ACRONYM PCI, TO PROTECT CREDIT CARD DATA AND ENSURE SECURE PAYMENT TRANSACTIONS. SO WE HAVE IDENTIFIED THAT WE NEED TO HAVE A SOLUTION THAT CAN SUPPORT EASY TRANSITION TO REDUCE CASH HANDLING, SUPPORT MODERN PAYMENT METHODS SUCH AS APPLE PAY, GOOGLE PAY, ETC. AND IMPROVE PCI COMPLIANCE. SO WHAT WE DID WAS ON DECEMBER 8TH, WE ISSUED AN RFP FOR A CREDIT CARD MERCHANT SERVICES PROCESSOR, AND WE RECEIVED RESPONSES ON JANUARY 23RD. WE HAD FOUR PROPOSALS AND OUR EVALUATION CRITERIA INCLUDED THE PROJECT UNDERSTANDING AND APPROACH, THEIR TECHNICAL CAPABILITIES, REFERENCES AND PAST PERFORMANCE, COST AND VALUE INTEGRATION EXPERIENCE, AS WELL AS THE TEAM THAT WOULD BE HELPING WITH SUPPORT AND INTEGRATING THE PROJECT. OUR OVERALL OBJECTIVE AS PART OF THE EVALUATION PROCESS WAS TO IDENTIFY A VENDOR THAT PROVIDED THE BEST OVERALL VALUE, NOT SOLELY LOW COST. OUR SELECTION COMMITTEE CONSISTED OF 17 MEMBERS FROM FINANCE, BUSINESS SERVICES, AND IT. WE CONSIDERED INPUT FROM ALL OF OUR STAKEHOLDERS, INCLUDING ACCOUNTING, INFORMATION TECHNOLOGY AND BUSINESS SERVICES WHO ARE THE CORE USERS OF THE NEW PAYMENT PROCESSING ENVIRONMENT. SO AFTER OUR SELECTION COMMITTEE CONVENED AND MET BOTH INTERNALLY TO SCORE, AND THEN ALSO DID SOME FOLLOW UP PRESENTATIONS WITH THE VENDORS, WE LANDED ON SELECTING EXPITRANS AS THEY CLEARLY DEMONSTRATED THEIR ABILITY TO MEET BOTH OUR OPERATIONAL AND TECHNICAL NEEDS. IN ADDITION TO CARRYING OUT OUR FUTURE CREDIT CARD PAYMENT PROCESSING SERVICES, THEY WILL PROVIDE COMPREHENSIVE END TO END SUPPORT, MANAGEMENT, INCLUDING PROVISIONING, MAINTENANCE AND LIFECYCLE MANAGEMENT OF OUR CREDIT CARD DEVICES. THEY PROVIDED A COMPETITIVE AND TRANSPARENT PRICING MODEL WITH CLEARLY DEFINED ITEMIZED FEES AND NO HIDDEN OR BUNDLED COSTS. AND THEY HAVE A COMPREHENSIVE PCI COMPLIANCE STANDARD THAT PROVIDES US WITH A LEVEL OF DETAILS AND WITH TOKENIZATION AND FRAUD PREVENTION CONTROLS. THEY ALSO HAD A WELL-DEFINED AND THOUGHTFUL APPROACH TO SYSTEM INTEGRATION, BOTH WITH EXISTING INFRASTRUCTURE SUCH AS OUR VENTEK PARKING MACHINES AND UPCOMING SYSTEM IMPLEMENTATION FOR CAN/AM TELLER. THE OVERALL OPERATIONAL BENEFITS TO THE PARK DISTRICT IS THAT WE WILL HAVE A [00:10:06] CENTRALIZED DATA AND REPORTING ACROSS ALL PAYMENT CHANNELS, ESSENTIALLY OFFERING A ONE SINGLE SOURCE OF TRUTH. AND IT'LL REDUCE RELIANCE ON MULTIPLE VENDORS. AT THE MOMENT, ONE ISSUE COULD POTENTIALLY MEAN THREE DIFFERENT EMAILS, THREE DIFFERENT VENDORS, MOVING TO CONSOLIDATE EVERYTHING INTO ONE ACCOUNTABLE PARTNER. SO IN TERMS OF THE FISCAL IMPACT, THIS ACTUALLY IS A VERY GOOD STORY AS WE'RE GOING TO BE SAVING MONEY IN THE LONG RUN. SO EXPITRANS WILL PROVIDE 10 CRITICAL TERMINALS AT NO COST AND THEN 20 ADDITIONAL TERMINALS AT $250 EACH, WHICH IS $5000, WHICH CAN BE ABSORBED AS PART OF OUR ERP REPLACEMENT PROJECT BUDGET. THE PRICING MODEL CONTINUES TO OPERATE WHERE THE PARK DISTRICT ABSORBS THE FEE. SO BASICALLY OUR PARK USERS ARE CHARGED THE FEE THAT'S PUBLISHED IN OUR ANNUAL FEE SCHEDULE, AND WE COVER ANY OF THE CREDIT CARD PROCESSING AND TRANSACTION FEES. THE ESTIMATED ONGOING COST IS, RIGHT NOW AS OF FY 25, WE PAY FOR ACTIVENET AND WELLS FARGO ABOUT $330,000. AND BASED ON OUR CURRENT TRANSACTION VOLUME TREND AND FUTURE PROCESSING FEES WERE ESTIMATED AT ABOUT $200,000 MOVING TO EXPITRANS AGAINST A REVENUE OF $6.7 MILLION. SO ESTIMATED SAVINGS OF OVER $130,000 FOR THE PARK DISTRICT. SO NEXT STEPS, IF YOU APPROVE THIS ACTION, IS WE WILL FINALIZE A FIVE YEAR AGREEMENT WITH EXPITRANS. WE'LL INITIATE A PROJECT IMPLEMENTATION AND KICK OFF. AND THEN WE'LL COORDINATE OUR INTEGRATION EFFORTS WITH OUR EXISTING VENDORS, WHICH IS CAM/AM TECHNOLOGIES AND VENTEK AND DEVELOP A TIMELINE, BEGIN HARDWARE DEPLOYMENT PLANNING AND COORDINATE STAFF TRAINING. SO WE REQUEST THAT THE BOARD FINANCE COMMITTEE REVIEW THE INFORMATION REGARDING AWARDING A FIVE YEAR CONTRACT TO EXPITRANS INC FOR COMPREHENSIVE CREDIT CARD MERCHANT SERVICES, AND RECOMMEND THIS BE FORWARDED TO THE BOARD OF DIRECTORS FOR ACTION AT THE MAY 5TH MEETING. I'LL TAKE ANY QUESTIONS. ANY QUESTIONS, COMMENTS FROM BOARD MEMBERS? YEAH. OKAY. JUST HAD TO CLARIFY. JUST A COMMENT. I THINK THIS IS REALLY GREAT. I'M EXCITED THAT IT'LL BE ONE CENTRALIZED SYSTEM. I THINK THAT MAKES IT EASIER FOR EVERYBODY. AND I LOVE THAT IT ALSO INVOLVES COST SAVINGS. SO THANK YOU VERY MUCH FOR THE REPORT AND SOUNDS LIKE A GOOD DECISION TO ME. GREAT. THANK YOU. YEAH. I'M LOOKING AT THIS STAFF REPORT AND I'LL QUOTE IT. IT SUPPORTS A CUSTOMER FRIENDLY PAYMENT EXPERIENCE. YOU KNOW, THAT'S NOT SOMETHING THAT YOU'RE GUARANTEED TO HAVE IN THE RETAIL WORLD, YOU KNOW? AND AN EXAMPLE OF A GOOD EXPERIENCE AND I HAVEN'T TRIED IT YET HERE, BUT I UNDERSTAND BART HAS TAP IN, TAP OUT NOW, WHERE YOU JUST TAP YOUR CARD WHEN YOU GO IN AND TAP YOUR CARD AND IT FIGURES IT ALL OUT. YOU DON'T HAVE TO BUY A TICKET. THOSE TICKET MACHINES, THE BART ONES ARE EASY COMPARED TO THE ONES IN DC. THOSE ARE NUTS. SO NOW YOU DON'T HAVE TO GO TO THE MACHINE. YOU JUST TAKE OUT YOUR CARD AND DO IT. I'M NOT SAYING WE NEED TO DO THAT HERE, BUT YOU'VE DONE SOMETHING THAT ADDRESSES THAT PROBLEM THAT'S OUT THERE SOMETIMES. AND THAT IS, IT'S COMPLICATED AND CUMBERSOME FOR THE CONSUMER AND MAYBE A LITTLE TIME CONSUMING TOO. SO I HOPE THIS WOULD REALLY ADDRESS ALL THOSE THINGS. AND, YOU KNOW, WHEN PEOPLE GO TO A PARK, THEY DON'T WANT TO BE, YOU KNOW, STRESSED OUT BY JUST PAYING TO GET IN, YOU KNOW. EXACTLY. THE GOAL IS TO HAVE THE ABILITY TO IMPLEMENT MORE TAP TO PAY FEATURES THROUGHOUT OUR PARKS. AND THIS NEW CREDIT CARD PROCESSOR HAS THE HARDWARE TO DO THAT. OKAY. I WAS AFRAID TO ASK THAT, BUT YOU'VE TOLD ME SO. YEAH. OKAY. THANK YOU. IS THAT IT? YEAH. GREAT. WELL, SO JUST FOR THE SAKE OF CONVERSATION, I THINK THIS IS A GREAT IDEA AND CONSOLIDATION IS GOOD, EXCEPT IN OUR NEXT ITEM, IF YOU ASK AN INVESTOR, THEY'RE GOING TO SAY, OH, NO, YOU WANT TO DIVERSIFY. WHAT WOULD HAPPEN IN THIS CASE IF I DON'T KNOW ANY OF THIS STUFF? WHAT IF THERE'S A COMPUTER HACK AND EVERYTHING GOES DOWN IN THIS GROUP? THIS GROUP HAS SOME KIND OF SECURITY BREACH AND EVERYTHING GOES TO HECK AND THERE'S NOTHING TO DO. ARE WE GOING TO LET EVERYONE IN FREE ON THE 4TH OF JULY TO THE PARK DISTRICT? I DON'T HAVE AN EXACT ANSWER FOR THAT. BUT HISTORICALLY, WHEN OUR SYSTEMS HAVE GONE DOWN AND WE HAVEN'T BEEN ABLE TO FUNCTION THEM, WE DO LET PARK USERS ACCESS THE PARK FOR FREE. EXCELLENT. I LIKE TO HEAR THAT. AND SO THE NEXT ANSWER WOULD BE IN THIS PACKAGE AND THIS WHOLE THING THAT WE WERE SOLD TO THE INTERVIEW GROUP. ARE THERE ANY INSURANCES OR IF THAT OCCURS, YOU KNOW, WE MAKE A LOT OF MONEY TRUSTING THE SYSTEM [00:15:09] TO WORK. IF IT DOESN'T WORK, WE HAVE AN OBLIGATION, IN MY OPINION, TO LET OUR PEOPLE IN FREE. BUT DOES THE COMPANY WHO SOLD US THIS, WILL THEY PAY US BACK? WILL THEY INSURE US FOR THE LOSS? I DON'T HAVE THAT EXACT ANSWER TO THE QUESTION, BUT AS WE GO INTO CONTRACT. THE PARK DISTRICT DOES CARRY BUSINESS INTERRUPTION INSURANCE. YOU'D HAVE TO LOOK AT THE POLICY TO SEE WHETHER THIS TYPE OF AN EVENT WOULD QUALIFY. OKAY, GREAT. I THINK IT'LL BE GREAT. AND THEN WE BROUGHT UP THE DEAL. WE'RE GOING TO MAKE IT EASY FOR EVERYBODY. WHAT IF PEOPLE DON'T HAVE CREDIT CARDS? SO IF THEY DON'T HAVE CREDIT CARDS, WE'VE BEEN LETTING. LIKE WE'RE STARTING THESE TRIAL PERIODS. SO THE PARK SITES THAT WE WENT TO CASHLESS THE LAST TWO YEARS, WE'VE BEEN MONITORING THAT. WE WERE LETTING PEOPLE IN DEPENDING ON THEIR SITUATION, THEY WERE ABLE TO GET IN. AND WE REALLY DIDN'T HAVE THAT MANY PEOPLE THAT CAME THROUGH THAT WEREN'T ABLE TO SUPPLY A CREDIT CARD TO PAY. IT'S CREDIT CARD OR PHONE, RIGHT? I MEAN. YEAH. A LOT OF PEOPLE HAVE THEIR CREDIT CARDS ON THEIR PHONE NOW, SO. OKAY. BUT I MEAN, IF YOU DIDN'T HAVE. YOU SAID, SO I DON'T HAVE ANY OF THAT STUFF. SO YOU WOULD LET THEM IN FREE? THAT'S HISTORICALLY WHAT WE'VE BEEN DOING IS, IF THEY HAVE THE NEED, IF THEY DON'T HAVE THE ITEM AT THE CASHLESS SITES, THEN WE'VE BEEN MONITORING THAT, AND IT HASN'T BEEN THAT HEAVY OF A POPULATION THAT HAS COME THROUGH THAT HAD EXPRESSED THAT NEED. ALL RIGHT. THANK YOU. DO WE HAVE ANY COMMENTS FROM THE PUBLIC ON THIS? THERE IS NO PUBLIC COMMENT ON THIS ITEM. OKAY. IN THAT CASE, WE HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD TO ACCEPT THIS. DO I HAVE A MOTION TO ACCEPT OR MOVE FORWARD? SO MOVED. WE HAVE A MOTION. SECOND. AND A SECOND. HEARING NO FURTHER DISCUSSION. ALL IN FAVOR, SIGNIFY BY SAYING AYE. AYE. MOTION PASSES 3-0. THANK YOU VERY, VERY MUCH, KATIE. AND WE'LL MOVE ON TO THE NEXT ITEM, WHICH IS RECOMMENDATION TO APPROVE THE REVISIONS TO THE DEFERRED COMPENSATION INVESTMENT POLICY STATEMENT AND APPROPRIATE $14,000 OF BOARD CONTINGENCY FUNDS FOR THE DEFERRED COMPENSATION ADVISORY COMMITTEE MEMBERS TO ATTEND THE NAGDCA CONFERENCE FROM SEPTEMBER 27TH TO THE 30TH IN ORLANDO, FLORIDA. SORRY. OKAY. KATIE DIGNAN, ACTING AGM OF FINANCE AND MANAGEMENT SERVICES HERE TODAY TO PRESENT ON THE DEFERRED COMPENSATION PLAN POLICY REVISIONS AND NAGDCA CONFERENCE FUNDING REQUEST. WE HAVE TWO RECOMMENDATIONS THAT WILL BE COVERED IN THIS ITEM. FIRST TO AUTHORIZE SPENDING OF UP TO $14,000 FOR BOARD CONTINGENCY FUNDS FOR TRAVEL TRAINING COSTS FOR FOUR MEMBERS OF THE DCAC TO ATTEND THE 2026 NAGDCA CONFERENCE IN ORLANDO, FLORIDA, FROM SEPTEMBER 27TH TO THE 30TH. AND TO AUTHORIZE APPROVAL OF THE REVISIONS TO THE DEFERRED COMPENSATION INVESTMENT POLICY STATEMENT. SO JUST A LITTLE BACKGROUND. SHAUN COVERED SOME OF THIS IN HIS INTRO OF THE DEFERRED COMP ADVISORY COMMITTEE. IT WAS FORMED ON SEPTEMBER 19TH OF 2017. IT'S A FIVE MEMBER COMMITTEE CONSISTING OF REPRESENTATIVES FROM HUMAN RESOURCE, FINANCE, AFSCME, POLICE ASSOCIATION AND PARK RETIREES. THERE'S THREE ALTERNATIVE MEMBERS APPOINTED BY AFSCME, THE POLICE ASSOCIATION AND PARK DISTRICT RETIREES. AND THEN WE MEET EVERY TWO MONTHS AND USES A WORK PLAN TO GUIDE ITS ACTIVITIES AND RECOMMENDATIONS. THE DAC ROADSHOWS. SO SOME OF THE DCAC MEMBERS THAT ATTENDED THE NAGDCA CONFERENCE LAST YEAR HAVE BEEN DOING ROADSHOWS. AND SO THE LAST ONE HAPPENED ON APRIL 25TH AT THE BRAZILIN ROOM, THEY WENT FOR A RETIREE LUNCHEON AND PROVIDED SOME INFORMATION ON DEFERRED COMP. AND THEN THEY'RE SCHEDULED TO GO TO OPS IN MAY. THEY'RE ALSO WORKING ON HEALTH AND SAFETY FAIR PARTICIPATION. THEY ANNUALLY REVIEW THE INVESTMENT POLICY STATEMENT AND THEY PERFORM BI MONTHLY REVIEWS OF PLANNED PARTICIPATION AND OUR INVESTMENT REPORTS. SO NAGDCA STANDS FOR THE NATIONAL ASSOCIATION OF GOVERNMENT DEFINED CONTRIBUTION ADMINISTRATORS ANNUAL CONFERENCE, OFFERS A TRAINING OPPORTUNITY ON GOVERNMENT'S FIDUCIARY RESPONSIBILITIES AND BEST PRACTICES FOR PLAN ADMINISTRATION AND MEMBER ENGAGEMENT. THIS YEAR IT WILL BE IN ORLANDO FROM SEPTEMBER 27TH TO THE 30TH. SINCE 2022, THE BOARD OF DIRECTORS HAS APPROVED THE USE OF ITS CONTINGENCY FUND FOR DAC MEMBERS TO ATTEND THIS TRAINING. THE PROPOSAL, AS LISTED AND RECOMMENDED FROM THE DEFERRED COMP ADVISORY, WAS TO SEND FOUR MEMBERS AT $14,000 TO THE [00:20:04] CONFERENCE. SOME ALTERNATIVES THAT THE FINANCE COMMITTEE MAY CONSIDER IS TO REDUCE ATTENDANCE TO TWO DAC MEMBERS, POSSIBLY ALTERNATING WITH A POST-CONFERENCE REPORT BACK TO THE FULL COMMITTEE OR EXPLORING LOWER COST ALTERNATIVES, INCLUDING VIRTUAL TRAINING OPPORTUNITIES WITH COMPARABLE VALUES. ON THE NEXT ITEM, IT'S REVISIONS TO THE DEFERRED COMPENSATION AND INVESTMENT POLICY STATEMENT. THE EAST BAY REGIONAL PARK DISTRICT'S DEFERRED COMPENSATION INVESTMENT POLICY STATEMENT IS REVIEWED ANNUALLY BY THE AR EMPOWER REPRESENTATIVES AND THE DAC MEMBERS. A FEW MINOR REVISIONS HAVE BEEN RECOMMENDED FOR THE REVIEW ON MARCH 19TH, 2026. THE PROPOSED REVISIONS ARE INTENDED TO CLARIFY LANGUAGE, IMPROVE CONSISTENCY AND REFINE LANGUAGE TO BETTER REFLECT THE BOARD'S EVALUATION APPROACH. AND IT'S MAINLY PROPOSING REVISIONS TO THE INVESTMENT POLICY TO REMOVE REFERENCES TO A WEIGHTED CRITERIA, AS NO SUCH CRITERIA WAS ESTABLISHED OR DEEMED APPLICABLE. SO WITH THAT, THERE IS THE RECOMMENDATION THAT WE ARE PROPOSING TO AUTHORIZE THE SPENDING OF THE $14,000 FROM BOARD CONTINGENCY FUNDS FOR TRAVEL TRAINING COSTS FOR FOUR MEMBERS OF THE DAC TO ATTEND THE CONFERENCE, AND THEN ALSO AUTHORIZE APPROVAL OF THE REVISIONS TO THE DEFERRED COMPENSATION INVESTMENT POLICY STATEMENT. WITH THAT, I'LL OPEN IT UP TO QUESTIONS. QUESTIONS, COMMENTS? JOHN. GO AHEAD. YEAH. SO I NOTICED THAT YOUR ROADSHOWS ARE LOCATED FAIRLY KIND OF CLOSE TOGETHER. YOU KNOW, THEY'RE IN ONE PART OF THE DISTRICT AND THEY'RE NOT EVEN THAT FAR APART. HAS THERE EVER BEEN ANY CONSIDERATION ABOUT SPREADING IT OUT A LITTLE BIT MORE? MAYBE SOMETHING EAST OF THE HILLS? MAYBE SOMETHING THAT'S NOT EVEN A DISTRICT FACILITY? BECAUSE I KNOW WE DON'T HAVE VISITOR CENTERS OR THINGS, YOU KNOW, IN THE EAST OF THE HILLS THAT WOULD BE CONVENIENT FOR PEOPLE TO GET TO. BUT, YOU KNOW, I KNOW THAT SAN RAMON AND DUBLIN ARE KIND OF IN THE CENTER OF THE DISTRICT, SO MAYBE IF THERE WAS SOMEPLACE THERE. I'M JUST WONDERING, HAS THERE EVER BEEN THOUGHT ABOUT MAKING IT MORE CONVENIENT FOR THOSE THAT LIVE ALL AROUND THE DISTRICT? OKAY. I WILL DEFINITELY TAKE THAT COMMENT BACK TO THE DEFERRED COMP, BUT TO NOTE THE EVENT THAT'S IN TRUDEAU IS THE OPERATIONS FORUM. SO IT WILL HAVE MEMBERS IN OPS FROM ALL OVER THE DISTRICT THAT WILL BE ATTENDING AT TRUDEAU. SO THESE ARE DURING STAFF WORKING HOURS, AND SO THEY'VE COME. AND THEN THE ONE AT BRAZILIAN ROOM WAS FOR RETIREES. BUT YES, DEFINITELY WE CAN CONSIDER. I'LL TAKE THAT BACK TO THE COMMITTEE. IT MIGHT BE, YOU KNOW, MAYBE IT'S JUST A TRIAL. SEE HOW IT GOES, SEE IF YOU GET MORE ATTENDANCE. BUT, YOU KNOW, I'D LIKE TO SEE THINGS SPREAD OUT A LITTLE BIT MORE IF IT'S GOING TO HELP. OKAY. AND SHAUN'S RIGHT HERE, SO I'LL HAVE HIM COMMENT ON THAT TOO, SINCE HE'S ONE OF THE HELLO AGAIN. SO THERE'S TWO EVENTS THAT WE PARTICIPATE IN THAT WE EDUCATE MEMBERS THAT ARE DISTRICT WIDE. ONE'S A HOLIDAY LUNCHEON THAT WE HAVE AT THE BRICKYARD. THE OTHER ONE IS A SAFETY FAIR THAT'S TRADITIONALLY HELD IN LITTLE HILLS. PERSONALLY, IN MY EXPERIENCE AND SOME OF THE INTERNAL CONVERSATIONS WE HAD OUTSIDE DCAC IS, HOW CAN WE REACH OUR MEMBERS BETTER? AND WE'RE TRYING THAT IN A LOT OF DIFFERENT WAYS. JUST ONE ON ONE COMMUNICATION. WE'VE DONE SOME OUTREACH VIA POLICE VERSUS FIRE TO SEE HOW THAT LANDS VERSUS ME AS A FIRE CAPTAIN SPEAKING TO OUR FIRE DEPARTMENT, SHOWING A DIFFERENT FACE TO PEOPLE WHO WOULDN'T NECESSARILY SEE US IN TERMS OF SECURING THAT PROVIDING THAT FINANCIAL SECURITY THAT OUR MEMBERS NEED. DEFINITELY TAKE THAT INTO ADVISEMENT AND WE WILL ENSURE THAT WE MAKE BETTER OUTREACH TO THOSE AFFECTED PARTIES. GREAT. MAY I FOLLOW UP ON THAT? SO, I'M NOT BEING FACETIOUS, BUT I MEAN, SO YOU YOU WOULD MEET WITH THESE PEOPLE AND PROVIDE INFORMATION, YOU'RE SURE? WHAT ARE YOU GOING TO SAY? YOU GOT A CHANCE TO BE IN THE DEFERRED COMP? YOU'RE NOT GOING TO ADVISE PEOPLE SAY, HEY, GET IN THE PLUS FUND OR GET IN THE. SPEAKERS]. WHAT IS THE CONTENT OF THESE ROADSHOWS? TO LET THEM KNOW THAT THERE'S TOOLS OUT THERE SUCH AS, YOU KNOW, EMPOWER HAS PEOPLE OUT THERE THAT WILL ADVISE THEM. ONE OF THE THINGS WE ENCOUNTERED JUST LAST WEEK OR A FEW WEEKS AGO AT THE BRAZIL ROOM IS A LOT OF OUR RETIREES AREN'T TOO FAMILIAR WITH THE PLAN. SOME OF THE CHANGES FROM MISSION SQUARE TO EMPOWER. SO WE'RE TRYING TO BRIDGE THAT GAP A LITTLE BIT. SOME ARE, YOU KNOW, COMING UP ON REQUIRED MINIMUM DISTRIBUTION CRITERIA. SO WE WANT TO TAILOR OUR EDUCATION AND WHAT WE PROVIDE TO THOSE INDIVIDUAL MEMBERS WHILE NOT PROVIDING ANY KIND OF LIKE INVESTMENT GUIDANCE WHATSOEVER. EXCELLENT. THANK YOU. YOU EDUCATED ME. I WAS WONDERING WHAT WOULD BE TALKED ABOUT. AND ME TOO. ACTUALLY, CAN I ADD ON TO WITH A COMMENT? [00:25:08] PLEASE DO. YEAH. I'VE ALWAYS BEEN A BIG SUPPORTER OF TRAINING. I ALWAYS FIND IT VERY UNFORTUNATE IN BUDGET TIMES WHEN CERTAIN AGENCIES CUT THEIR TRAINING BUDGET. AND THAT'S NOT REALLY A GOOD STRATEGIC APPROACH TO SAVING MONEY. I DON'T THINK, SO THAT'S PART OF THIS. THIS ITEM WE'RE CONSIDERING HERE IS WHETHER OR NOT TO. OR HOW MUCH TO SEND FOLKS AWAY. I SUPPORT AS MUCH AS WE CAN MANAGE, AS MUCH AS IS NEEDED. YES. OKAY. SO YEAH, I ALSO SUPPORT SENDING FOUR MEMBERS TO THE NAGDCA CONFERENCE. I THINK IT IS IMPORTANT FOR PEOPLE TO HAVE THE TRAINING AND ALSO TALK WITH OTHERS WHO ARE IN SIMILAR ROLES. AND SO I GUESS I DO HAVE TWO QUESTIONS THOUGH. SO FIRST OF ALL, YOU KNOW, OVER THE LAST SEVERAL YEARS, WE HAVE TAKEN THE TRAINING MONEY OUT OF THE BOARD CONTINGENCY. AND I THINK ORIGINALLY THAT WAS BECAUSE THERE WASN'T ANY OTHER PLACE TO TAKE IT FROM. BUT I THOUGHT THAT THERE WAS GOING TO BE SOME CONSIDERATION GIVEN TO OTHER SOURCES FOR THAT. SO I WAS WONDERING IF THAT'S STILL ON THE TABLE, OR. AND THAT'S ONE QUESTION. AND THEN THE SECOND QUESTION IS, HOW MUCH MONEY WE CURRENTLY HAVE IN OUR FUND? I ASSUME IT'S ENOUGH TO COVER THIS AND THEN SOME, BUT JUST WANTED TO KNOW THOSE TWO THINGS. GREAT. THANK YOU, DIRECTOR ECHOLS. SO I'LL ANSWER THE SECOND QUESTION FIRST. CONTINGENCY CURRENTLY HAS A BALANCE OF $57,210. AND AS I GET INTO THE NEXT PRESENTATION ON THE Q4, EVEN LAST YEAR, THAT FUND WASN'T TAPPED. SO THAT BALANCE STILL REMAINED AT THE END OF LAST YEAR. Q4 2025. AND THEN FOR YOUR FIRST QUESTION OF OTHER FUNDING SOURCES, SO LAST YEAR WHEN WE CAME BEFORE THE FINANCE COMMITTEE TO FUND THIS CONFERENCE, WE HAD PROPOSED POTENTIALLY ADDING AN ADMINISTRATIVE FEE TO THE PLAN, BECAUSE THAT'S HOW OTHER AGENCIES WE FOUND FROM OUR RESEARCH WERE FUNDING THESE TYPES OF TRAINING EVENTS. HOWEVER, THE FINANCE COMMITTEE AT THAT TIME DECIDED THAT THEY DIDN'T WANT TO DO THAT. SO THAT'S WHY WE'RE BACK TODAY TALKING ABOUT BOARD CONTINGENCY FUNDS. THAT'S FINE. AND I ACTUALLY WASN'T AWARE THAT OUR CONTINGENCY FUNDS ROLL OVER. THEY DON'T, THEY WEREN'T SPENT. SO THEY WENT BACK. BUT IT'S THE SAME BUDGET EVERY YEAR THAT YOU HAVE. OH, OKAY. I SEE WHAT YOU'RE SAYING. OH. SO. OKAY, THAT'S INTERESTING BECAUSE I THOUGHT WE'D TAKEN SOME SPONSORSHIPS OUT OF THAT, BUT I GUESS NOT. OKAY. ALL RIGHT. WELL, THANK YOU. YOU'VE ANSWERED MY QUESTION, AND I AM IN SUPPORT OF THIS PROPOSAL. GREAT. THANK YOU. THANK YOU. AND I GUESS JUST A FEW QUESTIONS. I OBVIOUSLY AM A MEMBER OF THIS RETIREMENT PLAN AND I'M VERY SATISFIED WITH IT. AND I GET LOTS OF INFORMATION ABOUT IT. SO CAN YOU TELL ME HOW MANY PEOPLE ARE MEMBERS? WHO PARTICIPATES? IT'S VOLUNTARILY. YES, AND I APOLOGIZE, I DID NOT COME WITH THE CURRENT PARTICIPATION DATA LIKE COMMITTED TO MEMORY, BUT I FEEL LIKE MAYBE META. IS IT 6? 670 SOMETHING? I KNOW IT'S LIKE, YEAH, IT'S AROUND THE 650,000, YOU KNOW, OR 650 PARTICIPANTS. SORRY. OKAY. AND THEN. OH, THE POOL WOULD BE SOMETHING LIKE 12 OR 1400, RIGHT? YES. YEAH. SO IT WOULD BE. ALL OF OUR EMPLOYEES ARE FULL TIME EMPLOYEES. AND THEN OUR RETIREES. YEAH. AND THOSE THAT HAVE SEPARATED. OKAY. AND SO SHAUN HAD BROUGHT UP SOME CONTENTION ABOUT WHO HAS GREATER MANAGEMENT POWERS AND LEGAL POWERS. AND I DON'T KNOW IF WE CAN DELVE INTO THAT. I DON'T KNOW IF THAT'S COMFORTABLE TO DO, BUT I MEAN, SO I. WELL, I GUESS THE FIRST THING IS WHAT ARE THE ADMINISTRATIVE FEES? I THOUGHT THE ADMINISTRATIVE FEES WERE IN POWER CHARGES. BUT THAT'S THEY CHARGE YOU TO INVEST YOUR MONEY AND PUT IT IN PLACES. SO THEIR ADMINISTRATION FEE, WHICH IS VERY SMALL AND WORTH IT, THAT HAS NOTHING TO DO WITH US. SO WHAT DOES IT COST US TO RUN THIS PROGRAM? THE REGIONAL PARK? SO IT'S ALL PASSED THROUGH THOSE ADMINISTRATIVE FEES. SO THAT'S ALL BEING PASSED ON TO PARTICIPANTS TO PARTICIPATE INTO THE PLAN. OH, IT IS? YEAH. BUT NOT $14,000? NOT $14,000. SO THIS WOULD BE COMING FROM THE PARK DISTRICT'S BUDGET. AND LYNNE, DID YOU WANT TO ADD SOMETHING? I GUESS I WASN'T SURE IF YOUR QUESTION RELATED TO HOW MUCH STAFF TIME. [00:30:05] I MEAN, THE PARK DISTRICT OBVIOUSLY INVESTS QUITE A BIT. I WAS GOING TO. YEAH, I WAS GOING TO SAY $14,000 AND THE AMOUNT OF TIME WE SPEND ON IT WITH STAFF TIME. AND NOT ONLY WHO PAYS FOR IT, WHO'S RESPONSIBLE. WHAT HAPPENS IF WHAT WOULD HAPPEN IF I DON'T EVEN KNOW CONTRACTUALLY OR LEGALLY WHAT OUR RELATIONSHIP WITH EMPOWER IS. BUT WE HIRED THEM. WE MEANING US. AND WE ARE THE FIDUCIARY. WE MEANING THE BOARD. WHAT HAPPENS IF SOMEBODY RUNS OFF WITH THE MONEY AND NOBODY HAS ANY RETIREMENT? I MEAN, WHO PAYS? WHO'S RESPONSIBLE? WHAT HAPPENS? WELL, THAT'S A PRETTY EXTREME EXAMPLE OF WHAT COULD HAPPEN. I MEAN, IN TERMS OF LIKE, SOMEBODY APPROPRIATING ALL OF THE MONEY, BUT THAT IS WHY AS THE FIDUCIARY, THE BOARD, THAT'S WHY WE PROVIDE YOU WITH FIDUCIARY TRAINING EVERY YEAR, SO YOU UNDERSTAND WHAT THE LIABILITIES ARE RELATED TO YOUR ROLE AS THE FIDUCIARY. BETTY, THAT'S PART OF THIS ENTERPRISE. WHENEVER YOU DEAL WITH INVESTING, SOMEONE'S MONEY HAS FIDUCIARY RESPONSIBILITIES. YOU HAVE A FIDUCIARY RESPONSIBILITY WITHIN YOUR SCOPE OF AUTHORITY, ESSENTIALLY. SO THE DEFERRED COMP ADVISORY COMMITTEES JUST MAKE RECOMMENDATIONS. SO WHILE THEY HAVE A FIDUCIARY DUTY TO THE PARTICIPANTS TO MAKE SOUND RECOMMENDATIONS, THEY WOULDN'T FACE ANY LIABILITY BECAUSE THEY DON'T HAVE ANY ACTUAL POWER TO MAKE DECISIONS. THAT'S ALL CURRENTLY BEING DONE BY THE BOARD. SO ULTIMATELY, IT IS THIS BOARD OF DIRECTORS WHO HOLDS THAT RESPONSIBILITY, WHICH IS PART OF THE REASON WHY, SINCE BEFORE I GOT HERE, LEGAL AND FINANCE HAVE BEEN RECOMMENDING THAT YOU CREATE A COMMITTEE THAT IS MORE THAN AN ADVISORY COMMITTEE THAT COULD TAKE ON SOME OF THE FIDUCIARY RESPONSIBILITIES THAT THE BOARD OF DIRECTORS NOW HOLDS. BUT IT'S TOTALLY UP TO YOU IF YOU WANT TO DO THAT OR DON'T WANT TO DO THAT, YOU'LL CONTINUE HOLDING THAT RESPONSIBILITY. OKAY. AND WE'LL BRING BACK THAT TRAINING THIS YEAR. JUST TO GIVE YOU A REFRESHER ON. IT'S PARTICIPANTS THAT ARE CHOOSING HOW THEY WANT TO INVEST THEIR MONEY IN THE PLANS THAT EMPOWER IS PROVIDING. SO WHAT THE COMMITTEE IS REVIEWING IS THE PERFORMANCE OF EACH OF THOSE. IT'S OVER 30 DIFFERENT OPTIONS YOU HAVE TO INVEST IN. AND SO IT'S REALLY THE PARTICIPANTS DECIDING WHICH OF THOSE PLANS THAT EMPOWER OFFERS THAT THE COMMITTEE IS REVIEWING ON A QUARTERLY BASIS THAT THEY WANT TO INVEST THEIR MONEY IN. AND THEN FROM THIS INVESTMENT POLICY, BASED ON THAT METRICS, WE DETERMINE IF A FUND ISN'T PERFORMING VERY WELL, THEN WE MIGHT WANT TO REMOVE THAT FUND FROM THE PLAN AND THE OPTIONS THAT'S PROVIDED TO PARTICIPANTS. SO THAT'S THE RESPONSIBILITY OF THE COMMITTEE AND THE BOARD OF DIRECTORS AT THIS POINT IN TIME. BUT IT'S REALLY. THE PARTICIPANTS ARE MAKING ALL OF THOSE DECISIONS ABOUT WHERE THEY'RE INVESTING THEIR FUNDS. RIGHT. YEAH. I'M JUST WONDERING, THE DEBATE OF WHETHER WHO HAS CONTROL. I DON'T MIND BEING A FIDUCIARY BECAUSE I TRUST OUR FINANCIAL STAFF AND OUR LEGAL STAFF. I LOVE THE FACT THAT RANK AND FILE PEOPLE ARE INVOLVED, BUT I HOPE YOU ALL WOULD WOULD ADMIT THE LEVEL OF EXPERTISE PROBABLY MAY BE THE REASON WHY THERE'S A LITTLE MORE POWER. AND I THINK THE WORD ILLEGAL POWER AND MANAGEMENT OF WHAT'S GOING ON IS IN THE HANDS OF THESE PROFESSIONALS. I DON'T KNOW IF THAT ANSWERS YOUR QUESTION, JOHN, BUT I FEEL COMFORTABLE THAT WAY. I DON'T MIND THAT. ANYWAY, I THINK IT'S A GREAT PROGRAM. I KNOW I'VE BENEFITED FROM IT. IT'S AMAZING. IN THE OLD DAYS, THEY TOLD ME TO DO IT, AND I DID IT, AND I FORGOT ALL ABOUT IT. AND NOW LIFE IS GOOD. SORT OF FROM A FINANCIAL STANDPOINT. ANYWAY, ANY COMMENTS FROM ANYBODY? WE DO. WE HAVE ONE PUBLIC COMMENT. MY NAME IS MEADOW DARCY AND I'M FROM AFSCME LOCAL 2428. AND FORGIVE ME, I JUST SCRIBBLED A WHOLE BUNCH OF NOTES. SO I WANTED TO MAKE A FEW COMMENTS ON THIS ITEM. FIRST, I WANTED TO THANK KATIE DIGNAN. SHE IS NOW LEAVING THE COMMITTEE AND KAREN IS GOING TO TAKE HER PLACE ON THE COMMITTEE. BUT KATIE'S BEEN WONDERFUL AND VERY SUPPORTIVE OF GETTING US TRAINING AND SUPPORTING THE COMMITTEE, SO I JUST REALLY WANT TO THANK HER FOR ALL HER SUPPORT. AND THANK YOU, DIRECTORS, FOR SUPPORTING THE TRAINING FOR OUR COMMITTEE. [00:35:02] I DID WANT TO CLARIFY A FEW THINGS. THE FUNDING SOURCE, AS FAR AS THE ADMIN FEE, I THINK THERE WAS ORIGINALLY AN ADMINISTRATIVE FEE, WHICH IS A SMALL PORTION OF THE PARTICIPANT'S MONEY THAT IS SET ASIDE INTO A FEE. AND THEN A BUDGET IS CREATED FOR THAT, FOR THINGS LIKE PARTICIPANT OUTREACH OR TRAINING FOR THE COMMITTEE. AND SO THAT SEEMS TO BE A REASONABLE MODEL, AT LEAST TO THE COMMITTEE INITIALLY. THERE WAS A LITTLE BIT OF GOING BACK AND FORTH ABOUT WHO SHOULD BE PAYING AND ALL OF THAT. AND I THINK THE ORIGINAL INTENT OF THE COMMITTEE WAS TO HAVE THE ADMINISTRATIVE FEE SO THAT THERE WASN'T THIS CONSTANT COMING TO THE BOARD AND HAVING TO RE JUSTIFY THE IMPORTANCE OF HAVING TRAINING FOR AN ADVISORY COMMITTEE. BUT THAT THERE WOULD BE A SMALL BUDGET PUT ASIDE THAT WAS, YOU KNOW, PLANNED OUT BY THE COMMITTEE AND THEN THOSE FUNDS WOULD BE UTILIZED AND ANYTHING NOT UTILIZED GOES BACK TO THE PARTICIPANTS. SO I DO THINK THAT'S A DIRECTION THAT WE SHOULD GET BACK TO. BUT AGAIN, I KIND OF WANT TO ECHO SOME OF THE THINGS THAT SHAUN HAD SAID. THERE'S BEEN A LOT OF THINGS THAT KEEP COMING UP ON THE COMMITTEE IN ORDER TO CHANGE IT. I ALSO WANTED TO MENTION THAT, WHILE THE BOARD IS THE FIDUCIARY, EVERYBODY HAS THE FIDUCIARY RESPONSIBILITY. OUR JOB AS THE COMMITTEE IS TO ADVISE YOU AND, AS GENERAL COUNSEL MENTIONED, WE DON'T HAVE THE POWER TO MAKE DECISIONS. AND SO WE'RE MAKING RECOMMENDATIONS TO YOU, WHICH IN ORDER TO DO THAT, WE NEED TO BE ALL TRAINED IN THIS COMMITTEE AND ALL OF THE COMPLEXITIES THAT GO ALONG WITH IT SO THAT WE CAN MAKE GOOD RECOMMENDATIONS. WHEN IT COMES TO SORT OF POWER, IT'S NEVER REALLY BEEN AN ISSUE OF POWER. I THINK FOR A LOT OF THE COMMITTEE MEMBERS, I THINK IT'S MORE AN ISSUE OF KEEPING IT PARTICIPANT FOCUSED. SO WE WANT TO MAKE SURE THAT THIS ADVISORY COMMITTEE IS SUPPOSED TO BE ABOUT REPRESENTING THE PARTICIPANTS VIEWPOINTS OR NEEDS OR WANTS, AND ACTING IN THE BEST INTERESTS OF THE PARTICIPANTS. THERE ARE OTHER THINGS THAT COME TO A PRIORITY. LEGAL RESPONSIBILITIES OR DISTRICT PRIORITIES, ETC. BUT I THINK THE BEST WAY TO TAKE CARE OF YOUR FIDUCIARY RESPONSIBILITY IS TO HAVE MULTIPLE POINTS OF INFORMATION IN ORDER TO MAKE YOUR DECISION. SO ONE IS AN EDUCATED AND TRAINED COMMITTEE THAT ADVISES YOU. ANOTHER IS YOUR LEGAL DEPARTMENT AND ANOTHER IS FINANCE STAFF. BUT IF WE TAKE THE LEGAL DEPARTMENT AND THE GENERAL MANAGER AND PLACE THEM ON THIS COMMITTEE, AND THEY ARE THEN NOT EVEN PARTICIPANTS, IT'S NO LONGER A PARTICIPANT COMMITTEE GIVING YOU THE PARTICIPANT EXPERIENCE. WE DO WANT THEM ON THE COMMITTEE AS ADVISORY, BUT WE DON'T WANT THEM ON THE COMMITTEE REPRESENTING PARTICIPANTS NEEDS IF THEY'RE NOT PARTICIPANTS. THAT'S IT. THANK YOU. THANK YOU, MADAM. ANYONE ELSE? THERE IS NO MORE PUBLIC COMMENT. ALL RIGHT. WE HAVE THE ABILITY TO RECOMMEND TO APPROVE THE REVISIONS TO THE DEFERRED COMP INVESTMENT POLICY AND APPROPRIATE $14,000 DOLLARS. NOW, THERE WAS A MENTION AND I SUPPORT DIRECTOR ECHOLS AND I THINK THIS SHOULD BE A BUDGET ITEM. I DON'T THINK THIS SHOULD COME OUT OF THE BOARD CONTINGENCY FUND IF WE'RE GOING TO CONTINUE TO DO THIS AND IT SOUNDS LIKE WE ARE, WE CAN'T DO ANYTHING ABOUT THAT RIGHT NOW. BUT CAN WE. I DON'T KNOW WHO'S THE PARLIAMENTARIAN HERE. CAN WE INCLUDE AN AMENDMENT SUGGESTING THAT IN THE FUTURE, THE $14,000 OR THE TRAINING BUDGET SHOULD BE ROLLED INTO SOME OTHER FUND AS OPPOSED TO BOARD CONTINGENCY? YEAH. WE MAY NEED TO HAVE A SPECIFIC PROPOSAL ON THAT BECAUSE I THINK THAT, YOU KNOW, THERE'S A LOT OF DIFFERENT FUNDS AND THERE'S PROS AND CONS TO USING THEM. AND THEN THERE'S THE CONSIDERATION OF THE ADMINISTRATIVE FEE. SO I THINK WE PROBABLY WANT STAFF TO MAKE A RECOMMENDATION TO THE BOARD ABOUT WHERE THAT MONEY SHOULD COME FROM GOING FORWARD. AND WE CAN LOOK MORE CLOSELY AT IT. SO, I MEAN, I'M COMFORTABLE JUST SUPPORTING THIS PROPOSAL FOR TODAY. OKAY. AND THEN WE CAN DIVE MAYBE MORE DEEPER IN THAT WITH SOME ANALYSIS FROM STAFF ABOUT WHERE THAT MONEY COULD COME FROM SO THAT THEY DON'T HAVE TO COME EVERY YEAR. I MEAN, WE CAN AFFORD IT, BUT IT'S JUST SORT OF ODD THAT THEY HAVE TO COME TO US EVERY YEAR AND ASK FOR THE CONTINGENCY FUNDS, AND WE WILL DO IT. BUT WHO KNOWS? I MEAN, SOME FUTURE FINANCE COMMITTEE MAY FEEL DIFFERENTLY. SO I THINK IT WOULD BE GOOD TO HAVE HAVE THIS BAKED IN SOMEWHERE. OKAY. WE'LL DEFINITELY CAN PUT THAT AS AN ACTION ITEM ON US TO COME BACK WITH A RECOMMENDATION. MAY I ACCEPT THAT AS A MOTION? OH, YES. I WILL MAKE A MOTION FOR THE PROPOSAL AS ORIGINALLY STATED. SHOULD I READ IT? OR. I THINK WE ALL KNOW WHAT THAT IS. OKAY. I'LL SECOND. OKAY. WE HAVE A MOTION AND A SECOND. ANY FURTHER DISCUSSION? HEARING NONE. ALL IN FAVOR SIGNIFY BY SAYING AYE. AYE. AYE. MOTION PASSES UNANIMOUSLY 3-0. THANK YOU VERY, VERY MUCH, KATIE. [Informational Items] AND WE'LL NOW MOVE TO THE INFORMATIONAL ITEMS, WHICH INCLUDES THE PRELIMINARY UNAUDITED GENERAL FUND AND OTHER GOVERNMENT FUNDS, [00:40:01] FINANCIAL REPORTS FOR THE FOURTH QUARTER OF 2025. OKAY. SO OUR LAST INFORMATIONAL ITEM, AGENDA 5, OUR FOURTH QUARTER 2025 GENERAL FUND AND OTHER GOVERNMENTAL FUNDS, FINANCIAL REPORTS. SO FIRST WE HAVE. THIS SLIDE SHOWS THE YEAR END SUMMARY OF OUR GENERAL FUND REVENUES AND EXPENDITURES. UNAUDITED GENERAL FUND REVENUE TOTALED $235.2 MILLION, WHICH IS 105.2% OF THE $223.6 MILLION BUDGETED. THIS IS ALSO SLIGHTLY HIGHER THAN THE $229.3 MILLION RECORDED IN 2024. TOTAL EXPENDITURES WERE $240 MILLION, OR 94.8% OF THE $253.1 MILLION BUDGET. THIS IS ABOUT $7 MILLION LOWER THAN LAST YEAR. BECAUSE REVENUES WERE HIGHER AND EXPENDITURES WERE LOWER THAN EXPECTED, THE DISTRICT'S NET USE OF FUND BALANCE WAS ONLY $4.8 MILLION, COMPARED TO THE BUDGETED $29.5 MILLION OF WHAT WE ORIGINALLY ANTICIPATED OF NEEDING TO USE IN THE FUND BALANCE. HOWEVER, AGAIN, THESE ARE UNAUDITED AND WE HAVEN'T YET POSTED ALL OF OUR CARRY FORWARD, ROLLED FORWARD OUR PURCHASE ORDERS FROM 2025. SO THESE NUMBERS ARE STILL IN FLUX. SO PROPERTY TAX REVENUE FOR 2025, TOTAL PROPERTY TAX REVENUE WAS $206.8 MILLION. THE BUDGET WAS $207.6 MILLION. SO WE ENDED THE YEAR JUST SLIGHTLY BELOW BUDGET. THE MAJORITY OF THE PROPERTY TAXES COME IN, AS YOU CAN SEE FROM THE GRAPH AND QUARTER IN THE SECOND AND FOURTH QUARTERS FROM OUR COUNTIES. WHEN WE LOOK AT. WILL YOU ACCEPT QUESTIONS? YES. YEAR. SO THIS IS INCLUSIVE OF THE 6.7 FROM JANUARY 1ST ON WE'RE GOING TO EXPECT THREE POINT SOMETHING, RIGHT? YEAH. AND THE WAY THE COUNTIES COLLECT IS THEIR FISCAL YEAR RUNS FROM JULY. SO THEY'RE ON A DIFFERENT FISCAL YEAR. SO WE HAVE DIFFERENT PROJECTIONS BASED ON THAT. SO FOR THIS CURRENT YEAR, FOR NEXT YEAR'S BUDGET, WE'RE ANTICIPATING THE FORECAST TO COME IN IN AUGUST FROM BEACON TO LET US KNOW FOR THE FOLLOWING YEAR. BUT IT WAS IN THE RANGE OF ABOUT 3% IS WHAT WE'RE FORECASTING FOR 2026. OKAY. THANK YOU. I HAVE A QUESTION BECAUSE I ASSUME THIS IS MOSTLY FROM RESIDENTIAL. IS THAT RIGHT? FROM. MOST PEOPLE PAY ANNUALLY INSTEAD OF. YEAH. AND THIS IS LIKE A COMPREHENSIVE TOTAL. IT'S JUST ADDING ON AS WE GO ALONG. SO, FOR EXAMPLE, IN Q2, WE RECEIVED $80 MILLION. IN Q4, WE RECEIVED $105 MILLION. HAD TO DO THIS PRESENTATION. I WAS LIKE, YOU KNOW, WHAT ARE THESE NUMBERS BY QUARTER? SO YEAH, IT'S CUMULATIVE. THAT IS CONFUSING. YES. YEAH. CUMULATIVE. RIGHT? WE WILL DEFINITELY MAKE THAT NOTE FOR. GOTCHA. OKAY. THANK YOU. OKAY. SO AS WE MOVE INTO REVENUES AND EXPENSES. SO LOOKING MORE CLOSELY AT REVENUES, PROPERTY TAX ENDED THE YEAR AT 99.6% OF BUDGET. CHARGES FOR SERVICES CLOSED AT 96.7%, AND THEN PROPERTY USAGE FINISHED SIGNIFICANTLY ABOVE EXPECTATIONS AT 134.1% OF BUDGET, DRIVEN PRIMARILY BY HIGHER GRAZING REVENUES. AND SO, FOR CONTEXT, WE RECEIVED $1.38 MILLION FROM GRAZING LEASES THIS YEAR, COMPARED TO THE $825,000 WE HAD BUDGETED, RESULTING IN A POSITIVE VARIANCE OF MORE THAN HALF $1 MILLION. THE INVESTMENT EARNINGS AND OTHER REVENUE LINE ITEMS IS CONSISTENTLY HIGHER THAN BUDGETED BECAUSE INVESTMENT EARNINGS ARE NOT BUDGETED. FOR 2025, ACTUAL INVESTMENT INTEREST AND EARNINGS TOTALED $8.9 MILLION, WITH AN ADDITIONAL $2.5 MILLION IN UNREALIZED GAINS, CONTRIBUTING TO THE $14 MILLION REPORTED IN THIS CATEGORY. OTHER REVENUES TOTALED $2.7 MILLION, COMPARED TO THE $2.1 MILLION BUDGETED. AND BEGINNING IN Q1 OF THIS YEAR, WE'LL SEPARATE INVESTMENT EARNINGS FROM OTHER REVENUE TO MAKE IT MORE TRANSPARENT OF HOW MUCH REVENUE VARIANCES COME FROM THE INTEREST EARNINGS VERSUS OTHER SOURCES. TRANSFERS IN WERE EXACTLY AS EXPECTED AND BUDGETED. SO MOVING ON TO THE EXPENDITURE SIDE. OH YEAH. CAN I JUST. DIRECTOR MERCURIO. YEAH. JUST SO PEOPLE DON'T THINK THAT WE'RE CHEWING DOWN THE GRASS IN OUR PARKS. [00:45:07] ISN'T IT TRUE THAT THE GRAZING REVENUE IS A FORMULA THAT IS FIGURED, LIKE MAYBE EVERY YEAR OR PERIODICALLY BASED ON AND PART OF IT, ONE OF THE ELEMENTS OF WHAT WE CHARGE FOR THAT IS THE MARKET, WHAT THEY'RE GETTING FOR BEEF OUT THERE? I THINK THAT'S TRUE. SO MAYBE THAT'S WHY IT'S HIGHER. I NEED TO LOOK INTO THAT. BUT LYNNE, IT'S ALL PART OF. THERE'S A FORMULA THAT'S EMBEDDED INTO OUR INDIVIDUAL GRAZING CONTRACTS. RIGHT. AND SO I CAN LOOK INTO THAT. I DON'T KNOW IT OFF THE TOP OF MY HEAD, BUT I CAN GET YOU MORE DETAILS ON THAT. YOU KNOW WHAT I MEAN? IT'S NOT LIKE WE'RE ENDANGERING THE RESOURCE. IT'S THERE'S SOME OTHER THING GOING ON THERE. I THINK THAT WHAT YOU'RE PROBABLY SEEING IS JUST A REFLECTION OF SOME OF THE GRAZING AGREEMENTS THAT HAVE BEEN RE-UPPED AND MAYBE THE PRICES. SO, YOU KNOW, THEY HAVE A TERM AND THEN THEY TERM OUT AND BE ENTERED INTO NEW ONES. AND I KNOW WE SAW. THAT'S KIND OF WHAT I'M GETTING AT. YEAH, THAT WOULD BE. BUT IT DOES. WE HAVE SEEN. I THINK IT DOES. YEAH. WHEN WE COME BACK FOR. WE'RE GOING TO BE BACK IN MAY DOING THE Q1. SO I'LL MAKE SURE WE HAVE THAT. WE CAN ADDRESS THAT ITEM AND HAVE THOSE DETAILS DURING THE PRESENTATION. YEAH. THANK YOU. OKAY. SO ON THE EXPENDITURE SIDE, SALARIES AND BENEFITS ENDED AT 95.5% OF BUDGET. THIS MAINLY CAME FROM VACANCIES IN FINANCE AND MANAGEMENT SERVICES, PARK OPERATIONS AND PUBLIC SAFETY. SUPPLIES WERE AT 80.4% AND SERVICES AT 84.9%, BOTH LARGELY RELATED TO TIMING OF PURCHASES AND ENCUMBRANCES. CAPITAL OUTLAY ENDED AT 37.7% DUE TO THE EQUIPMENT PURCHASES THAT WILL CARRY INTO 2026. AND OTHER EXPENSES, INTERFUND CHANGES AND TRANSFERS OUT ALL FELL WITHIN THE EXPECTED RANGES. SO WHEN WE LOOK AT IT BY DIVISION, OVERALL PATTERNS REMAIN CONSISTENT WITH THE PRIOR YEARS. MOST DIVISIONS ENDED BELOW BUDGET, DRIVEN PRIMARILY BY POSITION VACANCIES AND LOWER SERVICES SPENDING. SOME DIVISIONS EXCEEDED 100% DUE TO SPECIALIZED OPERATIONAL NEEDS, STAFFING, TRANSITIONS, OR CONTRACT TIMING. MORE DETAIL ON ALL OF THE VARIANCES WAS PROVIDED. THAT ARE GREATER THAN 10%. IT'S INCLUDED IN YOUR PACKET AS ATTACHMENT A. WHEN WE LOOK AT OUR FIVE YEAR REVENUE TRENDS, AND WE SEE THAT THE DOTTED LINE REPRESENTS PROJECTED REVENUES. AND BECAUSE WE DO NOT BUDGET FOR INVESTMENT EARNINGS, THE PROJECTION APPEARS LOWER THAN ACTUALS. WE SAW MORE MODERATE PROPERTY TAX GROWTH IN 2024. AND THE PATTERN CONTINUED IN 2025, REFLECTING MODEST INCREASES IN ASSESSED VALUES. WHEN WE LOOK AT ON THE EXPENDITURE SIDE, COSTS CONTINUE TO TREND UPWARD ACROSS THE FIVE YEAR PERIOD DUE TO INFLATION AND HIGHER PRICES FOR GOODS AND SERVICES. FOR 2025, TOTAL EXPENDITURES ARE PROJECTED TO END SLIGHTLY BELOW OUR 2024 LEVELS, WITH SALARIES AND BENEFITS INCREASED MODERATELY DUE TO COST OF LIVING ADJUSTMENTS. OTHER GOVERNMENTAL FUNDS. WE HAVE OUR SPECIAL REVENUE FUNDS ENDED WITH REVENUES AT 129% OF BUDGET AND EXPENDITURES AT 88.7%, REFLECTING THE TIMING OF PROPERTY TAX RECEIPTS. PROCEEDS FROM THE SALE OF THE BURRELL PROPERTY LAST YEAR WAS AT $24.5 MILLION, WHICH IS WHY IT'S LOWER COMPARED TO THIS YEAR. PROJECTS FUND ENDED THE YEAR WITH REVENUES AT 205% OF BUDGET DUE TO TRANSFERS, INVESTMENT INCOME AND STATE GRANT REVENUE. EXPENDITURES REFLECT MULTI-YEAR PROJECT CYCLES. DEBT SERVICE FUNDS WERE CONSISTENT WITH SCHEDULED PAYMENTS. REVENUES CAME IN AT 119% ABOVE BUDGET, AND FOR THE INTERNAL SERVICE FUND, IT ENDED WITH REVENUES AT 104% AND EXPENDITURES AT 80%, LARGELY DUE TO TIMING OF INTERNAL CHARGES. BUT AGAIN, A LOT OF THE REVENUE INCREASES FOR ALL OF THIS ALSO HAD IMPACTS BECAUSE OF INTEREST EARNINGS. SO WITH THAT, THIS REPORT IS INFORMATIONAL ONLY. AND WE INTEND TO BRING THE AUDITED ANNUAL COMPREHENSIVE FINANCIAL REPORT TO THIS COMMITTEE IN AUGUST, SO OPEN UP FOR ANY ADDITIONAL QUESTIONS. QUESTIONS OR COMMENTS? JOHN. GO AHEAD. I DON'T WANT TO USE THE WORD BORING BECAUSE THAT'S A PEJORATIVE, BUT YOU KNOW, THERE'S NOTHING HERE THAT'S A BIG SURPRISE OR DISAPPOINTMENT OR ANYTHING, YOU KNOW? SO THIS IS THE KIND OF THING WE WANT TO SEE IS LIKE, YOU KNOW, FLATNESS, YOU KNOW, CLOSE TO WHAT WE THOUGHT. [00:50:06] THE OTHER THING I WANT TO SAY IS I REALLY, REALLY APPRECIATE. I THINK YOU CALL IT ATTACHMENT A. WITH ALL THE NOTES ON THERE BECAUSE, YOU KNOW, PROBABLY ALL OF US HAVE DIFFERENT THINGS WE LIKE TO FOCUS ON AND WE CAN JUST GO RIGHT TO THAT LINE, FIND THE NUMBER AND SEE WHY IT'S ONE WAY OR THE OTHER. ARE THOSE NOTES FOR EVERY SINGLE LINE OR IS IT ONLY WHEN THEY GO BEYOND A CERTAIN LIMITED RANGE OF VARIANCE? CORRECT. THE NOTES IS ANY TIME THAT IT'S OVER 10%. YEAH. SO THANK YOU FOR ALL THE FOLKS INVOLVED IN DOING THAT. BECAUSE I KNOW I'VE DONE THIS. IT TAKES SOME RESEARCH. YOU GOT TO ASK A LOT OF QUESTIONS AND FIND OUT. WE HAVE AN AMAZING TEAM IN FINANCE. WELL, THANK YOU VERY MUCH FOR THE REPORT. AND I'M ACTUALLY VERY HAPPY TO SEE THAT FOR THE MOST PART, AT LEAST BASED ON THE Q4 EXPENDITURES THAT WERE BELOW THE BUDGET, THERE'S ONLY A COUPLE WHERE WE WENT OVER. SO THAT'S GOOD NEWS. SO, GREAT. I LIKE TO SEE THAT. THANK YOU. THANK YOU, KATIE. SO I WAS WONDERING, I THINK THIS BUDGET LOOKS GOOD BASED ON A COUPLE OF THINGS THAT YOU MENTIONED. GREAT INVESTMENT RETURNS AND POSITION VACANCIES. HOW MANY POSITION VACANCIES DO WE HAVE IN THE DISTRICT? CURRENTLY, I DON'T HAVE THAT NUMBER OFF THE TOP OF MY HEAD, BUT I KNOW WE'VE BEEN DOING A MUCH BETTER ABILITY OF FILLING OUR VACANCIES. I THINK, LIKE WHAT I HEARD YESTERDAY WAS LIKE ALL OF OUR POLICE POSITIONS ARE FILLED, WHICH IS KIND OF THE FIRST TIME IN A LONG TIME THAT THAT'S HAPPENED. AND I KNOW WE'RE MAKING SOME SIGNIFICANT PROGRESS IN OPS, FILLING OUR RANGER POSITIONS. SO I CAN GET YOU THAT INFORMATION AGAIN WHEN WE COME NEXT. I'LL TAKE ALL THESE NOTES AND BE LIKE THINGS WE SHOULD ADD IN OUR PRESENTATIONS AS WE GO FORWARD IS WHAT WAS OUR VACANCY RATE AT THE END OF THAT REPORTING PERIOD? YEAH, I THINK IT'D BE INTERESTING BECAUSE I THINK THAT WOULD GIVE A TRUE PICTURE OF WHAT'S GOING ON. I HATE TO SEE VACANCIES. IT'S AWFUL. I THINK WE SHOULD BE FULLY STAFFED AND GETTING THE WORK DONE. BUT ANYWAY, AND THEN THE OTHER GOVERNMENT FUNDS, YOU MENTIONED SPECIAL REVENUE FUNDS, THAT THERE WAS A DISCREPANCY IN COLLECTION AND EXPENDITURE. AND IT'S ALL BASED ON WHEN WE COLLECT IT. I UNDERSTAND THAT, BUT DO WE MAKE A CONCERTED EFFORT TO SPEND ALL THOSE FUNDS? WE DON'T KEEP BALANCES, DO WE? AND I'M REFERRING TO IF THERE IS A PARCEL TAX IN THE FUTURE, I WANT PEOPLE THAT HAD SPECIAL FUNDS IN THEIR NEIGHBORHOODS BEING TAKEN OUT OF THEIR TAXES TO BE SPENT AND USED AND PROMOTED. YES, WE DO MAKE A CONCERTED EFFORT TO MONITOR OUR SPECIAL REVENUE FUNDS AND ENSURE, ESPECIALLY FOR OUR ZONE OF BENEFITS AND OUR, YOU KNOW, MEASURE FF, THE COMMUNITY FACILITY DISTRICTS THAT WE HAVE FOR THE TRAILS AND EAST CONTRA COSTA COUNTY, WE'RE MONITORING THOSE BUDGETS AND MAKING SURE WE'RE SPENDING IT AND COMING BACK WHEN WE DO THOSE ANNUAL ENGINEERS REPORTS IF WE NEED TO MAKE ANY ADJUSTMENTS. BLESS YOU. EXCELLENT. THANK YOU VERY MUCH. BLESS YOU. I LEFT OFF ONE. I FORGOT TO MENTION ONE OTHER COMMENT THAT I HAD. ACTUALLY, IT'S A REQUEST. AND THAT IS, WHEN THE BOARD GETS ITS QUARTERLY KIND OF UPDATE REPORT KIND OF THING, CAN WE GET THE BOARD'S BUDGET NUMBERS TO EACH QUARTER? YOU KNOW, WHERE WE ARE, WHERE THE EXPENDITURES ARE AT THAT POINT IN TIME? FOR THE BOARD OF DIRECTORS. YEAH. OUR BUDGET UNIT. YEAH. YES, OF COURSE WE CAN ADD A SECTION THAT JUST HIGHLIGHTS. WE CAN ADD AN ATTACHMENT TO THE REPORT THAT SHOWS WHERE THE BOARD OF DIRECTORS BUDGET STANDS. OKAY. THANK YOU. ALL RIGHT. ANY COMMENTS FROM THE PUBLIC? THERE IS NO PUBLIC COMMENT. ANY COMMENTS FROM FOLKS HERE? HEARING NONE, WE'LL MOVE TO ANNOUNCEMENTS. ANY ANNOUNCEMENTS FROM ANYONE? HEARING NONE, WE'LL MOVE TO ADJOURNMENT. WE ARE ADJOURNED. THANK YOU ALL FOR BEING HERE. GREAT. THANK YOU SO MUCH. * This transcript was compiled from uncorrected Closed Captioning.