[Roll Call]
          [00:00:07]
          GREAT, THANK YOU. WELL, GOOD MORNING AND WELCOME TO THE EAST BAY REGIONAL PARK DISTRICT'S BOARD FINANCE COMMITTEE MEETING OF MAY 13TH, 2026. I'LL CALL THE MEETING TO ORDER TODAY AT 10:32 A.M. 
          MADAM CLERK, WOULD YOU DO THE ROLL CALL, PLEASE? YES, THANK YOU. DIRECTOR ECHOLS? PRESENT. 
          DIRECTOR MERCURIO? HERE. 
          CHAIR WAESPI? HERE. ALL MEMBERS ARE PRESENT. THANK YOU. THANK YOU. OUR NORMAL AGENDA INCLUDES THE APPROVAL OF THE MINUTES, THOUGH WE HAVE NONE. WE'LL MOVE NOW TO PUBLIC COMMENT. THERE IS NO PUBLIC COMMENT. THANK YOU. 
          [Action Items]
AND THEN WE'LL MOVE TO THE ACTION ITEMS. AND ACTION ITEM A IS THE RECOMMENDATION OF THE BOARD OF DIRECTORS TO APPROVE THE INTERNAL AUDIT WORK PLAN FOR 2026 AND THE FINAL 2025 INTERNAL AUDIT RESULTS. 
          WELCOME, DAVID. GOOD MORNING. 
          I'M DAVID SUMNER. I'M THE MANAGER FOR THE PARK DISTRICT, AND I APPRECIATE THE PROTECTION AND SUPPORT THAT THE BOARD HAS GRANTED ME THROUGHOUT THE YEARS. I WILL BE PRESENTING AN AUDIT PLAN FOR THE 2026 WHICH REQUIRES BOARD APPROVAL AND AFTER THAT I WILL BE DISCUSSING THE AUDIT REPORTS THAT WERE GENERATED AND FINALIZED DURING 2025. THE OTHER THING IS THE CORNERSTONE OF A GOOD PUBLIC SECTOR. 
          GOVERNANCE AUDITING IS ESSENTIAL FOR UPHOLDING PRINCIPLE OF ACCOUNTABILITY, TRANSPARENCY, INTEGRITY, EQUALITY AND PROVIDING SERVICE TO THE PUBLIC ETHICALLY, EFFECTIVELY, EFFICIENTLY AND ECONOMICALLY WITHIN THE BOUNDARIES OF SPECIFIC PROGRAMS. AUDITING IS IN A NUTSHELL COMPARING WHAT IS TO, WHAT IS SUPPOSED TO BE. 
          AUDITING IS A VERY OLD PROFESSION. IT STARTS FROM THE TIME THAT MANAGEMENT AND OWNERSHIP OF THE ACTIVITIES GOT SEPARATED. AT THAT POINT, AN IMPARTIAL REVIEW OF THE ACTIVITIES OF THE TASKMASTERS BECAME NECESSARY FOR THE OWNERS OR THE GOVERNORS TO MAKE SURE THAT THE ACTIVITIES TAKE PLACE ACCORDING TO THE PLAN AND RESULTS WOULD BE ACHIEVED TIMELY AND PROPERLY AND ECONOMICALLY AND ALL THAT. 
          SO, DO I GO WITH THAT? IT DOESN'T GO. IT STILL DOESN'T GO. IN 2026, OUR PLAN IS TO REVIEW PAYROLL CONTROLS AND REPORTING PRACTICES, REVIEW OUR BOTANIC GARDEN, CASH COLLECTION ACTIVITIES, REVIEW OF ANTHONY CHABOT EQUESTRIAN CENTER, REVIEW OF THE TELEPHONE AND CELL PHONE EXPENSES, REVIEW AND UPDATE OF THE PARK DISTRICT INTERNAL AUDIT CHARTER, REVIEW OF PARKING PERMITS THAT ARE ISSUED BY PUBLIC SAFETY TO PARK DISTRICT STAFF, AND REVIEW OF CASH COLLECTION PROCEDURES AT CONTRA LOMA AS USUAL AS THE YEARS BEFORE, MEASURE W ACTIVITIES THAT WOULD BE COMPLETED AND REQUESTED FINAL REIMBURSEMENT WOULD BE REVIEWED. AND ALSO, WHEN THE OPERATIONS DEPARTMENT ENTERS INTO AN RFP, I WILL BE ASSISTING WITH THE REVIEW OF THE MATERIALS BEFOREHAND AND ALSO DURING THE SELECTION PROCESS, 
          [00:05:02]
I WILL ATTEND TO ENSURE THAT FAIR AND SIMILAR TREATMENT WOULD BE PROVIDED TO ALL THE APPLICANTS. I HAD PROVIDED A DETAIL OF ALL THE OTHER REPORTS THAT WERE GENERATED DURING THE 2025, AND THEY WERE INCLUDED IN THE ATTACHMENT. I'M AT YOUR SERVICE IF YOU HAVE ANY PARTICULAR QUESTIONS WITH REGARD TO THAT. ANY QUESTIONS, COMMENTS? I THINK, NO. NO, I THINK IT'S GREAT DAVID. I LOOK FORWARD TO THIS. I THINK IT'S GOING TO BE A LOT OF FUN TO TRY TO REVIEW THE TELEPHONE AND CELL PHONE EXPENSES LIKE EVERY SINGLE HUMAN BEING ON EARTH AND HAS ONE AND INCLUDING THE EAST BAY REGIONAL PARK DISTRICT. NO, I THINK THIS IS ALWAYS GREAT AND I LOOK FORWARD TO SEEING THE RESULTS. ANY QUESTIONS OR COMMENTS FROM THE PUBLIC OR STAFF? MEADOW, LOOKS LIKE SHE'S RUSHING TO THE, YOU DON'T HAVE TO DO A CARD RIGHT NOW IF YOU DON'T WANT TO. 
          I'LL BE BRIEF. HELLO, MY NAME IS MEADOW DARCY, AND I AM THE CHIEF STEWARD FOR AFSCME LOCAL 2428. JUST WANTED TO SAY I REALLY APPRECIATE THE WORK THAT DAVID DOES. AND I'M REALLY LOOKING FORWARD TO THE PAYROLL AUDIT THAT I SAW WAS NEW, NEWLY ADDED TO THE LIST. AND I JUST WANTED TO SAY I DO HOPE THAT THAT INCLUDES ALL THE PARTS THAT FEED PAYROLL. I WANT TO BE CLEAR THIS IS NOT A SPECIFIC EMPLOYEE ISSUE. THIS IS NOT OUR WONDERFUL PAYROLL STAFF THAT WORK VERY HARD. 
          BUT THERE'S A LOT OF THINGS THAT GO INTO PAY ISSUES FOR PEOPLE, AND I WANT TO MAKE SURE THAT WE'RE LOOKING AT ALL OF THOSE AND HOW WE GET THERE. 
          SO, I'M REALLY HAPPY TO SEE THAT AND THANK YOU AGAIN DAVID FOR ALL YOUR GREAT WORK. 
          THANK YOU. THANK YOU, THERE'S NO MORE PUBLIC COMMENT. GREAT, THAT DOES BEG A QUESTION SO WHEN WE SAY WE'RE GOING TO REVIEW THE PAYROLL CONTROLS AND REPORTING PRACTICES IS THAT FOR THE ENTIRE DISTRICT OR IS THAT FOR WHEN YOU AUDIT SOMETHING YOU JUST PICK A SPECIFIC AREA OF CONCERN OR, OR HOW WILL IT BE IS IT IS IT REALLY BROAD? YES, AS YOU HAVE ALREADY HEARD, THERE HAS BEEN CERTAIN ISSUES WITH REGARD TO PAYROLL PROCESSING AND INFORMATION THAT IS PROVIDED IN THE PAY STOPS TO EMPLOYEES. AND AS SUCH, INTENT IS TO LOOK AT WHAT IS HAPPENING, WHY IS IT HAPPENING, THOSE KINDS OF ERRORS THAT OCCUR, AND SUGGEST IMPROVEMENT TO INTERNAL CONTROLS IN A WAY THAT THEY WOULD NOT BE REPEATED OR GET CAUGHT BEFORE A PAY STUB IS ISSUED TO EMPLOYEES AND ALL THAT, SO IT WOULD BE ALL-ENCOMPASSING. 
          THE GOAL IS NOT TO SIT DOWN AND CORRECT ALL THE ERRORS THAT HAVE OCCURRED SO FAR WITHIN THE PAST FEW YEARS, BUT THE GOAL IS TO SEE WHAT IS THE ROOT CAUSE OF CERTAIN ISSUES. I CAN ASSURE YOU THAT I HAVE BEEN PERSONALLY AFFECTED BY THE ERRORS THAT HAVE BEEN OCCURRING IN PAYROLL OR PAYROLL PRACTICES. AND THE INTENT IS TO REALLY BRING THE PAYROLL PROCESS UP TO DATE TO MAKE SURE THAT THE DISTRICT WOULD NOT BE FACING UNCERTAIN AND UNPREDICTABLE CONSEQUENCES BECAUSE OF THE EVENTS THAT IS HAPPENING. GREAT. KATIE. IF I CAN ADD. AND I THINK THIS WILL BE VERY INSTRUMENTAL FOR US AS WE IMPLEMENT OUR NEW WORKDAY SYSTEM. SO, ANY OF THE FINDINGS THAT DAVID COMES UP WITH, WITH THIS AUDIT, WE CAN DO A CHECK TO MAKE SURE THAT WE HAVE ADDRESSED ALL OF THOSE ISSUES AS WE'RE DESIGNING OUR NEW SYSTEM. GREAT. WELL, THANK YOU, DAVID. NOW WE'VE GOT A REPORT ON THE 2025 INTERNAL AUDIT AND THE RESULTS. DURING 2025, WE COMPLETED 11 AUDIT PROJECTS, REVIEWED 474 CONTRACTS AND CONTRACT AMENDMENTS AND RFPS. 
          IN THE MIDDLE OF THE YEAR, 
          [00:10:04]
THE RESPONSIBILITY FOR REVIEW OF THE CONTRACTS HAS BEEN REMOVED FROM INTERNAL AUDITS, SO NEXT YEAR I'M NOT GOING TO HAVE ANY CONTRACT REVIEW UNLESS A PARTICULAR CONTRACT IS REVIEWED WOULD BE REQUESTED FOR PARTICULAR PURPOSE TO BE REVIEWED. WE HAVE PREPARED ANNUAL REPORT TO A STATE CONTROLLER, WHICH IS SOMETHING LIKE THE CAFER THAT WE PROVIDE, THE ACFER THAT WE PROVIDE FOR THE GENERAL PUBLIC, THAT'S A REQUIRED REPORT. AND THEN WE ALSO ARE REQUIRED TO PROVIDE A COMPENSATION REPORT ANNUALLY TO A STATE CONTROLLER. AGAIN, THAT HAS BEEN SOMETHING THAT I HAD DONE AT THE BEGINNING BECAUSE THE ASSISTANT FINANCE OFFICER THAT WAS ASSIGNED TO THAT WAS INCAPABLE OF PERFORMING IT. IT BECAME MY JOB AND FOR MULTIPLE YEARS I DID THAT UP UNTIL THE TIME CAME THAT WE HAD ADEQUATE STAFFING AND IT WAS REASSIGNED TO STAFF. 
          AT THIS POINT, I'M ONLY REVIEWING IT ON AN ANNUAL BASIS TO MAKE SURE THAT THE END RESULT IS ACCURATE BEFORE IT'S TRANSMITTED TO THE STATE COMPTROLLER'S OFFICE. I'M INVOLVED, AS I SAID, IN THE STATISTICAL SECTION OF THE CAFR, AND DURING THE DAY I PERFORM BANKING ACTIVITIES AND MANAGE CASH FLOW TO MAKE SURE THAT THE MAXIMUM EARNING OF INTEREST IS REALIZED FROM THE UNINVESTED AND INVESTED FUNDS FOR THE PARK DISTRICT. 
          AND I PROVIDE TECHNICAL SUPPORT TO MANAGEMENT AND TRAINING TO STAFF AS NEEDED, AND I PERFORM OTHER ASSIGNMENTS AS THEY BECOME NECESSARY. I HAVE NOTHING FURTHER TO ADD UNLESS YOU HAVE A SPECIFIC QUESTION REGARDING TO THE PAST YEAR. I WAS GIVEN TEN MINUTES FOR THE PRESENTATION, SO I'LL TRY TO LIVE UP TO THAT 10 MINUTES. ANY QUESTIONS, COMMENTS ON THE 2035 AUDIT? ELIZABETH. SO, OBVIOUSLY, CLEAN, SAFE DRINKING WATER IS FUNDAMENTAL, SO WE WANT TO MAKE SURE THAT OUR FIELD STAFF IS HAVING ACCESS TO GOOD DRINKING WATER. I'M LESS CONCERNED ABOUT THE COST THAN ABOUT THE ENVIRONMENTAL IMPACT OF THE BOTTLED WATER. SO, I'M JUST WONDERING IF THERE ARE, IF WE'RE LOOKING AT WAYS WHERE WE CAN REDUCE THE AMOUNT OF PLASTIC AND STILL PROVIDE, YOU KNOW, CLEAN DRINKING WATER. I DON'T, THAT'S PROBABLY NOT YOUR, YOU KNOW, MAYBE THAT'S NOT WITHIN YOUR DOMAIN, BUT YOU KNOW, READING THIS, YOU KNOW, I AGREE THE RECOMMENDATIONS LOOK GOOD. 
          CERTAINLY, IT MAKES SENSE TO HAVE SYSTEMS IN PLACE AND ANY COST SAVINGS THAT WE CAN HAVE AND STILL PROVIDE PEOPLE WITH SAFE DRINKING WATER. 
          BUT I GUESS I'M JUST ASKING, YOU KNOW, SORT OF MORE HOLISTICALLY, IS THERE, CAN WE LOOK AT A WAY TO, YOU KNOW, TO REDUCE THE AMOUNT OF PLASTIC AND STILL PROVIDE CLEAN DRINKING WATER? I WANT TO ASSURE YOU, DIRECTOR, OF COURSE, THAT DISTRICT STAFF HAVE TAKEN EVERY MEASURE THAT IS WITHIN THEIR ABILITY TO REDUCE AMOUNT OF PLASTIC USAGE AND ALL THAT. 
          WITH REGARD TO DRINKING WATER IN THE PUBLIC EVENTS, THEY USUALLY USE WATER CONTAINERS THAT ARE LARGE SIZE AND THEY PROVIDE CUPS AND ALL THAT. I DON'T THINK IT WOULD BE FEASIBLE REALLY TO ELIMINATE 100% OF USAGE OF INDIVIDUAL OR SINGLE WATER BOTTLES THAT ARE IN PLASTIC CONTAINERS AND THAT IS BECAUSE IN CASE OF AN EMERGENCY AND ALL THAT, RIGHT, CONSUMPTION BY AN INDIVIDUAL WOULD BE LIMITED TO A BOTTLE OR SO. SO, I THINK PUBLIC SAFETY AND CERTAIN PARTS WOULD CONTINUE OR WOULD HAVE TO CONTINUE BUYING ON AN OCCASIONAL BASIS FOR PROVIDING IN EMERGENCY CASES ONLY. BUT WITH REGARD TO STAFF USAGE, FOUNTAINS ARE BEING USED AND LARGE SIZE DISPENSERS ARE BEING USED AND ALL THAT AND IN EVENTS YOU KNOW THEY PUT A LARGE SIZE CONTAINER SO INDIVIDUAL USAGE OF THE BOTTLE IS VERY MINIMIZED SO THAT WOULD BE THE CASE. YEAH, THAT'S HELPFUL THANK YOU. PLEASE YEAH, IF I COULD JUST ADD DIRECTOR ECHOLS. 
          SO, A COUPLE OF THINGS FIRST OFF COMMENDING DAVID FOR TAKING THIS TASK ON IT WITH SOMETHING WE ASKED HIM TO LOOK AT BECAUSE IT WAS VERY DIFFICULT FOR US TO DETERMINE 
          [00:15:01]
ALL THE DIFFERENT LOCATIONS WE HAD [INAUDIBLE] DISTRICT, AND SO HE PROVIDES A COMPREHENSIVE ANALYSIS OF WHERE THAT'S AT. AND THEN OUR ACTING GENERAL MANAGER, MAX KORTEN, HAS CONVENED A DRINKING WATER WORK GROUP NOW. 
          THEY'RE WORKING THROUGH THIS AND COMING UP WITH A PLAN ON HOW WE'RE GOING TO ADDRESS SOME OF THE ISSUES THAT DAVID HAS RAISED IN THIS AUDIT. ONE OF THEM IN PARTICULAR IS ON THE FACILITIES MANAGEMENT SIDE, THEY'RE LOOKING INTO WHAT DAVID RECOMMENDED AS POSSIBLY ADDING FILTERS TO PARK LOCATIONS SO THAT WE CAN TRANSFER FROM BOTTLED WATER TO JUST REGULAR SOURCE WATER. 
          SO THAT'S ALL UNDERWAY, AND WE'LL BE HAPPY TO PROVIDE UPDATES AS WE MOVE FORWARD. 
          GREAT. THANK YOU. AND, DAVID, THANK YOU VERY MUCH FOR YOUR WORK ON BOTH THE 2026 PLAN AND THIS. IT'S VERY THOROUGH, AND I REALLY APPRECIATE ALL YOUR HARD WORK. 
          THANK YOU. GOD BLESS YOU. 
          FOR THE WATER BOTTLE, WE PROVIDE IN 36 SITES. THERE HAS BEEN THIS DRINKING WATER THAT IS PROVIDED BY THE DISTRICT ACCORDING TO MY COUNT. AND THEN WE SPEND ROUGHLY ABOUT 1.6 MILLION DOLLARS A YEAR FOR WATER. IT'S THE CONSUMPTION THAT WE HAVE FOR IRRIGATION, FOR EVENTS, FOR ALL THE PARK USES AND ALL THAT. 
          ROUGHLY ABOUT $82,000 OF THAT 1.6 MILLION IS EXCLUSIVELY FOR DRINKING WATER THAT HAS BEEN USED BY STAFF AND FOR SPECIFIC EVENTS AND ALL THAT. SO, THESE ARE THE BALLPARK NUMBERS THAT MIGHT BE OF INTEREST TO YOU. 
          ALL RIGHT. THANK YOU. THANK YOU. I'M ALWAYS AMAZED AT THIS REPORT. YOU NEVER CEASE TO AMAZE US WITH THESE THINGS, LIKE YOU JUST SAID, TAKING ON THE WATER. MY GOSH. THANK YOU. LITERALLY, WATER IS EVERYWHERE. SO, YOU PROVED IT. 
          SO, THANKS FOR DOING THAT. AND I APPRECIATE EVERYBODY ELSE BEYOND YOU THAT'S LOOKING AT WAYS, LIKE AS DIRECTOR ECHOLS WAS SAYING, WE ALWAYS HAVE A CONCERN ABOUT EXCESSIVE CONTAINER, YOU KNOW, ONE-TIME USAGE. AND IT SOUNDS LIKE YOU GUYS ARE TRYING TO GET BEHIND THAT TOO. SO, APPRECIATE THAT. THANK YOU. 
          GOD BLESS YOU. THANK YOU AGAIN VERY MUCH FOR ALL THE PROTECTION AND SUPPORT THAT YOU PROVIDE TO INTERNAL AUDIT. I APPRECIATE THAT. THANK YOU, DAVID. I ALWAYS FIND THESE INCREDIBLY INTERESTING AND THE SUBJECTS WE PICK TO AUDIT I THINK ARE GREAT. 
          BEFORE I PRAISE YOU, I'D JUST LIKE TO SAY ON THE WATER ISSUE, I CAN'T BELIEVE HOW WE DO THIS IN THE PARK DISTRICT. IT'S THE MOST AMAZINGLY UNCONTROLLED THING I'VE EVER SEEN IN MY LIFE. I REMEMBER WHEN WE GOT WATER AT SOUTH COUNTY CORPORATION YARD, WHICH IS SERVICED BY EAST BAY MUD, WHICH IS PROBABLY THE BEST, ARGUABLY THE BEST WATER COMPANY IN THE WORLD, ONLY RIVALED BY HETCH HETCHY WATER, WHICH SERVES ANOTHER PORTION OF OUR DISTRICT, WE GOT BOTTLED WATER BECAUSE WE DIDN'T LIKE THE PLUMBER, AND WE SAID HE USED TOO MUCH FLUX IN HIS PIPES, AND THAT HE WAS A TERRIBLE PLUMBER AND UNSANITARY. AND WE GOT IT, AND IT STILL HOLDS. AND, BY THE WAY, WHEN WE ELIMINATE PLASTIC, WHAT WE DO IS TAKE IT IN BIG FIVE-GALLON THEY USED TO BE BOTTLES, ALHAMBRA WATER USED TO BE IN BOTTLES. NOW IT'S YOUR BIG PLASTIC BOTTLES. AND BECAUSE THEY'RE SO BULKY AND BECAUSE YOU HAVE TO HAVE A BIG DIESEL TRUCK, MAYBE NOT DIESEL, MAYBE GAS, THAT'S WORSE. PROBABLY HAUL IT ALL OVER THE PLACE, PRODUCE IT, HAUL IT ALL OVER THE PLACE, DRIVE IT TO THE PARK DISTRICT, PAY FOR ALL OF THIS STUFF. AND THEN THEY TAKE THE BOTTLES AND THEY PLACE THEM BECAUSE THEY'RE BIG AND A LOT OF, THERE'S NO STORAGE. THEY PUT THEM IN SOUTH COUNTY CORPORATION. AND I THINK IT'S STILL THERE. BAKES IN THE SUN ALL AFTERNOON, SO PLASTIC AND BAKING SUN, AND THEN WE DRINK AND CLAIM THAT'S SAFER. I DON'T GET IT. WATER FILTERS ARE SIMPLE AND EASY TO INSTALL, AND I THINK THAT WOULD BE THE ANSWER FOR EVERYTHING. AND A BIG SAVINGS TO THE DISTRICT AND FOR THE HEALTH OF THE EMPLOYEES AND PEOPLE THAT ARE INVOLVED WITH DRINKING OUR WATER. 
          BECAUSE WE'RE NOT GIVING BOTTLED WATER TO OUR CUSTOMERS. WE TRUST THE, THE WATER COMPANY IS TO PROVIDE SAFE WATER. AND I DON'T KNOW WHY WE FEEL ANY DIFFERENT, IN MY OPINION. 
          BUT JUST AN OPINION. 
          BUT THANK YOU SO MUCH FOR ALL YOU DO. IT'S ALWAYS INTERESTING TO READ YOUR REPORTS AND SEE ALL THE GREAT WORK WE'RE DOING HERE IN THE PARK DISTRICT AND HOW WE CAN IMPROVE THAT. THANK YOU VERY MUCH. THANK YOU. SO, WE DO HAVE THE CHARGE OR THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD ACCEPTANCE. 
          OF THIS PROPOSAL FOR THE 2026 AUDIT AND WORK PLAN. SO, MOVED. 
          WE HAVE A MOTION AND A SECOND. 
          ANY FURTHER DISCUSSION? ANY PUBLIC DISCUSSION ON THIS? HEARING NONE, SIGNIFY BY SAYING AYE. AYE. MOTION 
          [00:20:02]
PASSES UNANIMOUSLY. THANK YOU VERY MUCH. WE'LL MOVE NOW TO THE QUARTERLY INVESTMENT REPORT AND MARKET REVIEW FOR MARCH 30TH, 2026. GOOD MORNING, CHRISTINA. I'VE GOT HEELS. I DON'T NEED THEM. GOOD MORNING, CHRISTINA CROSBY, ASSISTANT FINANCE OFFICER. I AM HERE TO INTRODUCE OUR NEXT ITEM TODAY, WHICH IS OUR QUARTERLY INVESTMENT REPORT AND MARKET REVIEW FOR MARCH 31ST, 2026. I HAVE A COUPLE OF LIMITED SLIDES THAT I'M GOING TO GO OVER OVERALL LIQUIDITY AND INVESTMENTS AND THEN I'M GOING TO TURN IT OVER TO JUSTIN RIZZILLO FROM PFM ASSET MANAGEMENT TO GO OVER SOME MARKET TRENDS AND ECONOMIC CONDITIONS AND THEN OUR PORTFOLIO IN MORE DETAIL. AFTER HIS PRESENTATION WE WILL BE ASKING FOR A RECOMMENDATION FROM THE COMMITTEE TO THE FULL BOARD TO ACCEPT THIS REPORT. SO, I'LL GO AHEAD AND GET STARTED. 
          ON PAGE 25 OF YOUR PACKET, YOU'LL SEE THIS FULL TABLE, AND I'M GOING TO KIND OF BREAK IT DOWN IN THREE MEANINGFUL CHUNKS FOR US AND JUST A REAL BROAD OVERVIEW. SO, THE FIRST THING I WANT TO TOUCH ON IS OUR LIQUIDITY OR CASH THAT WE HAVE ON HAND. YOU'LL SEE FROM DECEMBER OF 2025, WHEN WE LAST DID THE REPORT, WE SPENT DOWN ABOUT $41.9 MILLION IN THIS QUARTER WHICH PRIMARILY IS DRIVEN BY THE FACT THAT WE'RE NOT GETTING ANY REVENUES DURING THIS. WELL, NOT ANY, BUT PRIMARILY OUR PROPERTY TAX INSTALLMENTS ARE IN DECEMBER AND IN APRIL. SO, FOR THIS QUARTER, WE DON'T HAVE ANY REVENUE REALLY OFFSETTING OUR SPEND. SO, IT LOOKS LIKE A BIG CHUNK, BUT IT'S KIND OF NORMAL FOR WHAT WE DO. SO, WE'RE USING IT FOR ALL OF OUR OPERATING EXPENSES RIGHT NOW. YOU'LL SEE THAT POP BACK UP IN APRIL WHEN I DO THE NEXT QUARTERLY REPORT. 
          AND THEN THE NEXT CHUNK THAT WE'RE GOING TO TALK ABOUT IS OUR INVESTED SECURITIES. SO, THIS INCLUDES OUR SHORT, MID, AND LONG-TERM SECURITIES. AND JUSTIN WILL GO OVER THIS IN MORE DETAIL. HERE WE DIDN'T REALLY SEE AN OVERALL CHANGE. 
          WE SAW AN INCREASE OF ABOUT $300,000, BUT WE REALLY SAW MORE OF A SHIFT IN OUR INVESTMENT VEHICLES HERE. SO, AN INCREASE IN OUR U.S. TREASURIES, AN INCREASE IN OUR CORPORATE BONDS AND NOTES AND THEN A DECREASE IN OUR FEDERAL AGENCIES AND INSTRUMENTALITIES. AND THE LAST PIECE THAT I'M GOING TO TOUCH ON IS OUR FUNDS HELD IN TRUST. SO, THIS INCLUDES OUR PROJECT FUNDS AND OUR DEBT SERVICE FUNDS. THE ONE THING OF NOTE HERE THAT I WANTED TO POINT OUT IS THAT IF YOU LOOK LAST YEAR AT THIS TIME, SO MARCH 31, 2025, WE HAD A LITTLE OVER $100 MILLION IN THOSE PROJECT FUNDS, AND NOW WE'RE AT ABOUT $52.5 MILLION. AND REALLY WHAT THAT IS DEMONSTRATING IS OUR SPEND ON OUR PROJECTS. SO, WE WERE ABLE TO SPEND DOWN MEASURE AA FOR PROJECTS, AND THEN ALSO A BIG CHUNK OF OUR 2024 PROMISSORY NOTES, WHICH IS YOUR PERALTA OAKS NORTH PROJECT, THERE WAS A $30 MILLION SPEND THERE. SO THAT'S WHAT YOU'RE SEEING IN THAT DECREASE. AND THEN THIS IS WHERE I'M GOING TO TURN IT OVER TO JUSTIN. HE'LL GO OVER THOSE OTHER MORE EXCITING PIECES IN MORE DETAIL. AND THEN AT THE END OF HIS PRESENTATION, WE'LL ASK FOR THE RECOMMENDATION. ALL RIGHT. DIRECTOR MERCURIO, CHAIR WAESPI, NICE TO SEE YOU BOTH. DIRECTOR ECHOLS, IT'S WONDERFUL TO SEE YOU IN PERSON. THANK YOU FOR YOUR TIME TODAY. WELL, I'M DELIGHTED TO BE WITH EVERYONE. I'M GOING TO TRY TO KEEP MY REMARKS BRIEF BECAUSE I KNOW THAT YOU ALL HAVE A PACKED AGENDA. SO, IF YOU TURN TO PAGE 27 OF YOUR PACKET, I'LL JUST GO OVER SOME BRIEF REMARKS ON THE ECONOMY AND MARKETS. 
          SO, I THINK THE MAIN CONCERN THAT'S REALLY DRIVING THE PORTFOLIO THIS QUARTER IS THE GEOPOLITICAL SITUATION IN THE MIDDLE EAST. YOU'LL NOTICE THAT, YOU KNOW, I THINK IN MARCH, THAT REALLY DROVE SOME DRAMATIC CHANGES IN WHAT WE SAW TO THE PERFORMANCE OF THE INVESTMENT PORTFOLIO. 
          AND THAT WAS REALLY ATTRIBUTED TO THE RISE IN YIELDS. SO, BECAUSE OF ALL THE SORT OF GEOPOLITICAL RISKS, THE FACTORS THAT WE TYPICALLY TALK 
          [00:25:01]
ABOUT, THE FED'S DUAL MANDATE, MAINTAINING GOODS PRICE AFFORDABILITY, MAINTAINING MAXIMUM EMPLOYMENT, THOSE HAVE REALLY TAKEN A BACK SEAT. AND NOW BECAUSE OF THE SORT OF CONCERNS IN THE MIDDLE EAST, THERE'S MORE UNCERTAINTY, YIELDS HAVE RISEN, AND THAT HAS DRIVEN SOME CHANGE IN THE MARKET VALUES ON THE PORTFOLIO. THE GOOD NEWS, FRANKLY, IS THAT THE STRATEGY STILL CONTINUES TO WORK. IT IS CONSERVATIVE, AND IN THAT, THERE ARE OPPORTUNITIES THAT WE'VE BEEN ABLE TO REINVEST IN THE PORTFOLIO AND GENERATE, FOR EXAMPLE, HIGHER INTEREST EARNINGS THAT HAVE SURPASSED PREVIOUS PERIODS. AND THAT'S REALLY SORT OF BUTTRESSED AND SUPPORTED THE TOTAL RETURNS ON THE PORTFOLIO. RECENT NEWS WE SAW THIS WEEK RELATED TO UNEMPLOYMENT. WE SAW ADDITIONAL JOBS CREATED IN APRIL, AND IN FACT SOME ADDITIONAL JOB GAINS THAT HAVE REALLY STARTED TO PERHAPS SUGGEST THAT THE EMPLOYMENT PICTURE IS IMPROVING SLIGHTLY. 
          AND IN FACT, YOU PROBABLY HEARD IN THE NEWS, THERE HAS BEEN DISCUSSIONS ABOUT A POTENTIAL FOR A RATE HIKE. THAT SAID, WAGE INFORMATION SEEMS TO SUGGEST THOSE ARE BECAUSE WAGES ARE STILL STAGNANT. PERHAPS THAT RATE HIKE MIGHT BE A BIT PREMATURE, AND WE'LL HAVE TO SEE WHAT ADDITIONAL STATUS KIND OF DEVELOP BEFORE PERHAPS THE FED MIGHT UNDERTAKE THAT IN 2027. WITH RESPECT TO INFLATION, THE BUREAU OF LABOR RELEASED THEIR MOST RECENT CONSUMER PRICE INDEX REPORT. WE SAW HEADLINE INFLATION RISE TO 3.8%. THAT'S UP FROM 3.3% IN MARCH AND ABOVE THE CONSENSUS ESTIMATES THAT WERE 3.7%. ADDITIONALLY, WE SAW CORE CONSUMER PRICE INDEX RISE TO 2.8%. THAT'S TWO BASIS POINTS HIGHER OR TWO-TENTHS OF A PERCENT HIGHER THAN WHAT WE SAW IN MARCH. YOU KNOW, SO, AGAIN, I THINK THE OVERALL PICTURE, YOU KNOW, THE KEY DATA ARE IN THE BACKSEAT RIGHT NOW. 
          WE'LL CONTINUE TO MONITOR THOSE CLOSELY. IT'S REALLY THOSE CONCERNS IN THE MIDDLE EAST THAT ARE DRIVING THE FACTORS THAT WE THINK ABOUT AS WE LOOK TO THE PERFORMANCE DURING THE QUARTER. IF YOU NOW TURN TO PAGE, THE SECOND PAGE. TREASURY YIELDS RISE ACROSS THE CURVE. 
          YOU'LL SEE WHERE RATES KIND OF CHANGED. AND THE LONGER END OF THE CURVE, TWO YEARS AND OUT, ROSE. SO, THE DASHED LINE SHOWS WHERE WE ENDED THE QUARTER WHEN WE LAST SPOKE IN DECEMBER OR AFTER THE DECEMBER QUARTER. AND THE SOLID LINE PRESENTS THE MOST RECENT MARCH RESULT. OVERNIGHT RATES GENERALLY STAYED THE SAME. 
          SO, THE LIQUIDITY THAT CHRISTINA SPOKE TO EARLIER CONTINUES TO EARN MEANINGFUL YIELD FOR THE DISTRICT. BUT AT THE SAME TIME, THIS HAS NOW OFFERED US AN OPPORTUNITY TO REPOSITION THE PORTFOLIO INTO HIGHER YIELDING SECURITIES. AND WITH THAT, I KNOW CHRISTINA SPOKE A MOMENT AGO ABOUT THE ACTIVITY THAT WE UNDERTOOK FOR THE PORTFOLIO. 
          DURING THE QUARTER, $18.4 MILLION WAS PURCHASED FOR THE DISTRICT. AND SINCE THE MARCH 1ST DATE, AROUND THE START OF THE WAR, 13.6 MILLION WAS ALSO PURCHASED FOR THE DISTRICT. THOSE INCLUDED NAMES LIKE AMAZON, SALESFORCE, I'M LOOKING THROUGH THE LIST HERE, AND SEVERAL BANKS. 
          BUT I WOULD NOTE THAT WITH RESPECT TO THE TECH NAMES, FOR EXAMPLE, THAT WE PURCHASED, I SEE COUPONS IN EXCESS OF 4.2%, SO 4.25% FOR AMAZON. 
          4.65 FOR SALESFORCE, EACH WITH MATURITIES OUT TO 2031. 
          SO, AGAIN, THIS OPPORTUNITY THAT WE SEE HERE IS PRESENTING A GOOD PLACE FOR US TO CONTINUE GENERATING CONTINUED INTEREST INCOME FOR THE DISTRICT. JUST WITH RESPECT TO THE STRATEGY, I KNOW THAT WE RECEIVED A QUESTION PRIOR TO OUR CONVERSATION THIS MORNING ABOUT THE BENCHMARK. 
          YOU KNOW, I THINK STATE CODE REALLY KIND OF PREDICTS AND GUIDES WHAT AGENCIES IN CALIFORNIA CAN DO. 
          AND THAT'S REALLY, YOU KNOW, FIVE YEARS AND IN, VERY CONSERVATIVELY MANAGED FIXED INCOME PORTFOLIO. THE BENCHMARK YOU'LL SEE IN OUR FOOTNOTES HAS TRANSITIONED FROM A ONE-YEAR BENCHMARK TO A ONE TO THREE-YEAR, AND NOW MOST RECENTLY AND FOR THE LONGEST PERIOD, A ONE TO FIVE-YEAR BENCHMARK. THAT ESSENTIALLY PEGS THE PORTFOLIO AT AROUND A TWO-YEAR TREASURY YIELD. SO THAT'S WHY I THINK I'VE ENCOURAGED IN OUR PRIOR CONVERSATIONS, YOU KNOW, PUT THE TWO-YEAR TREASURY WIDGET AS LIKE KIND OF A BENCHMARK TO HAVE ON YOUR PHONE. IT'S A NICE WAY TO KIND OF KEEP TABS ON HOW THE PORTFOLIO IS GOING. 
          AND HERE YOU CAN SEE THE HISTORICAL, YOU KNOW, AVERAGES FOR THE TWO-YEAR. SO, 20 YEARS IN THE ORANGE, 10 YEARS IN YELLOW, 5 YEARS IN BLUE. 
          AND AS WE'VE SEEN, WE STILL CONTINUE TO BE 
          [00:30:02]
IN HISTORICALLY HIGH RATE, HISTORICALLY HIGH YIELDS. SO, I THINK THAT THIS CONTINUES TO BE A GREAT TIME FOR THE DISTRICT TO CONTINUE INVESTING IN THE PORTFOLIO FOR CALIFORNIA AGENCIES TO BE INVESTED IN THE CONSERVATIVE BENCHMARKS THAT, FOR EXAMPLE, THE STATE OFFERS US. NOW JUST TURNING TO THE PORTFOLIO, YOU'LL SEE THE KEY STATISTICS HERE ON THIS SLIDE. I THINK CREDIT QUALITY AND SECTOR DIVERSIFICATION CONTINUE TO REMAIN A KEY PART OF THE PORTFOLIO STRATEGY. I MENTIONED LAST QUARTER, AND I'LL POINT OUT AGAIN, THE NOT RATED GREEN, THAT'S 5% ON THIS SLIDE, THAT'S BECAUSE S&P DOESN'T RATE THOSE HOLDINGS. RATHER, MOODY'S AND FITCH, WHICH ARE TWO OTHER RATING AGENCIES, DO RATE THE HOLDINGS ON THE PORTFOLIO. SO, COMPLIANCE WITH RESPECT TO THE INVESTMENT POLICY AND STATE CODE IS STILL ENSURED. YOU'LL SEE EFFECTIVE DURATION IS SLIGHTLY LONGER. THEN THE ONE-TO-FIVE-YEAR U.S. TREASURY BENCHMARK ON THIS PAGE, IT'S AT 2.54 YEARS. AND YIELD AT COST AND YIELD AT MARKET, THOSE ARE BOTH ABOVE 4%. SO STILL MEANINGFUL METRICS AS WE MEASURE THE PERFORMANCE OF THE DISTRICT'S INVESTED ASSETS. 
          SPEAKING TO THAT, AND BEFORE I GET TO THE ESG REMARKS, YOU'LL SEE HERE, YOU KNOW, AS YIELDS ROSE, THE MARKET VALUES CHANGED. AND THERE WAS A NEGATIVE 1.26 RETURNED DURING THE THREE-MONTH PERIOD. 
          NOW, I SHOULD NOTE, THIS IS NOT A BOOKED ADJUSTMENT. RATHER, THESE ARE SORT OF PAPER ADJUSTMENTS. 
          THIS IS NOT ON AN ACCRUAL BASIS. SO, YOU KNOW, WE CONTINUE TO INVEST ACTIVELY, AND AS I MENTIONED, WE WILL CONTINUE TO LOOK FOR OPPORTUNITIES TO REPOSITION THE PORTFOLIO TO TAKE ADVANTAGE OF THE CURRENT RATE ENVIRONMENT. 
          INTEREST EARNINGS, YOU'LL SEE ON THIS PAGE ALSO FOR THE THREE-MONTH PERIOD WAS $1.76 MILLION. ANNUALIZED, THAT'S $7.04 MILLION, WHICH IS IN EXCESS OF ALL THE PRIOR PERIODS ON THIS PAGE. SO, AGAIN, WE'RE REALLY HAPPY WITH THE WAY THAT THIS PORTFOLIO IS PERFORMING. AND TO THAT END, YOU CAN ALSO SEE THE PORTFOLIO PERFORMANCE FOR EACH PERIOD ON THIS PAGE ALSO OUTPERFORMS THE BENCHMARK THAT WE CURRENTLY MEASURE AGAINST, WHICH IS THE 1-TO-5-YEAR U.S. 
          TREASURY INDEX. FINALLY, I'LL JUST TURN TO THE ESG STRATEGY. YOU KNOW, THIS IS ONE CENTRAL AREA THAT THE DISTRICT HAS ASKED US TO FOCUS ON. AND, YOU KNOW, WE CONTINUE TO MONITOR THIS VERY CLOSELY AS THE DURATION ON THE PORTFOLIO IS FAIRLY SHORT. 
          THIS ESG SCORE IS GOING TO BOUNCE AROUND FROM QUARTER TO QUARTER. AS YOU SEE ON THIS PAGE, THE SCORE THAT MEASURES ESG RISK WAS 19.4, WHICH IS IN THE LOW CATEGORY OF ESG RISK. AND COMPARED TO THE PRIOR QUARTER, THAT IS INCREASED FROM 19.1, WHICH IS ALSO IN THE LOW CATEGORY. BUT FROM A YEAR AGO, THIS IS DOWN FROM 19.9, THE SAME QUARTER A YEAR AGO. SO, AGAIN, I THINK THE ADVANCEMENTS THAT THE DISTRICT HAS ENCOURAGED US TO UNDERTAKE IN THIS STRATEGY REALLY CONTINUE TO PLAY OUT PRETTY WELL. SO, WITH THAT, COMMITTEE, I'LL PAUSE FOR QUESTIONS. 
          QUESTIONS, COMMENTS? AH, WHAT THE HECK. I NEED SOME FINANCIAL ADVICE. SO, WHAT'S GOING ON? IF INFLATION IS GETTING MORE AND MORE, AND THEN, YOU KNOW, AND THIS IS REFLECTING WHAT? THE INFLATION FROM THREE MONTHS PAST, AND WHAT ARE WE LOOKING AT? SEVEN AND A HALF DOLLARS FOR A GALLON OF DIESEL FUEL, AND EVERYTHING'S MOVED AROUND IN THE COUNTRY BY DIESEL FUEL, SUPPLIES AND SERVICES, AND WE GOT WHAT LOOKS LIKE A PROLONGED WAR. 
          WHAT'S POSITIVE ABOUT ANY OF THIS? I MEAN, IS IT NVIDIA STOCKS THE ONLY THING KEEPING EVERYTHING BUOYED UP, OR ARE WE JUST MESSING AROUND HERE? YEAH, I WISH I COULD SPEAK MORE TO THE EQUITY MARKETS. 
          OBVIOUSLY, THE PORTFOLIO IS NOT INVESTED IN THOSE SORTS OF ASSETS. YOU KNOW, I THINK YOU POINT OUT AN INTERESTING POINT. IT'S REMARKABLE THAT, YOU KNOW, EQUITY MARKETS, THE THINGS THAT WE KIND OF SEE IN OUR SORT OF PERSONAL ASSETS, YOU KNOW, CONTINUE TO FLY HIGH. WHEREAS THERE'S ALL THIS NOISE THAT WE HEAR ABOUT EACH DAY WHEN WE OPEN UP, YOU KNOW, THE NEWS. AND AS YOU LOOK TO, YOU KNOW, I WAS JUST CHARGING MY CAR AT EVGO. IT WAS PACKED. I MEAN, EVERYONE'S TRYING TO MITIGATE THE HIGHER COSTS OF GASOLINE AND ENERGY. YOU KNOW, THAT SAID, I THINK THE MITIGATING FACTORS FOR THE U.S., WE ARE THE LARGEST ENERGY PRODUCER. SO, YOU KNOW, AS A SORT OF PERCENTAGE OF JUST GENERAL OVERALL COSTS 
          [00:35:02]
IN OUR, YOU KNOW, OUR WALLET SHARE. ENERGY AND GASOLINE DON'T REALLY ACCOUNT FOR AS MUCH AS IT DID IN PRIOR HISTORY. AT LEAST THAT'S WHAT THE DATA SUGGESTS. 
          THAT SAID, YOU FEEL IT IN YOUR POCKET. YOU CAN SEE THE LINES AT COSTCO. I KNOW THAT'S CERTAINLY A CONCERN. I MEAN, IF ANYTHING, FOR THE DISTRICT'S PORTFOLIO, AS I MENTIONED, THE UNCERTAINTY HAS DRIVEN THIS OPPORTUNITY TO REINVEST AND CONSIDER NEW OPPORTUNITIES TO INVEST IN THIS HIGHER COUPON OR YIELDING SECURITIES. I THINK WE'LL CONTINUE TO DO THAT. AND IF ANYTHING, THAT WILL CONTINUE TO, YOU KNOW, OFFSET ANY OF THE SORT OF MARKET VALUE CHANGES THAT WE MIGHT SEE GOING FORWARD. BUT I THINK THAT'S NOT IN OUR BASE CASE. IF ANYTHING, WE WOULD ANTICIPATE THAT RATES MIGHT FALL, WHICH WILL DRIVE MARKET VALUES ON THE PORTFOLIO HIGHER. OH, MONIQUE WANTS TO ADD. YEAH. 
          YEAH. OH, AND I'M SORRY, MONIQUE SPIKE WITH CALIFORNIA, HEADING OUR CALIFORNIA TEAM. WELCOME. HI, GOOD MORNING. I'LL JUST ADD A DIRECT RESPONSE TO THE QUESTION, BECAUSE I THINK, YOU KNOW, WHEN YOU THINK ABOUT THE ECONOMY, THERE'S SO MUCH UNCERTAINTY WITH REGARD TO INFLATION AND THE COST THAT WE SEE EVERY DAY AS CONSUMERS AT THE PUMP, AT THE GROCERY STORE. AND, YOU KNOW, JUST AS A SIDE COMMENT, YOU KNOW, GOING OUT A BIT BROADER, WE KNOW THAT GAS AND ENERGY PRICES ARE UNDER PRESSURE BECAUSE OF WHAT IS GOING ON IN THE MIDDLE EAST, BECAUSE OF WHAT IS GOING ON WITH IRAN AND THE STRAIT OF HORMUZ. 
          AND, YOU KNOW, FRANKLY, THAT IS THE KEY PRESSURE POINT FOR THAT SITUATION. FED HAS MADE COMMENTS, YOU KNOW, THAT BASICALLY SAY, YOU KNOW, THEY CAN'T DO ANYTHING ABOUT THOSE COST IMPACTS. YOU KNOW, THE FED CAN'T OPEN THE STRAIT, THE FED CAN'T INFLUENCE DIPLOMACY WITH IRAN, WITH THE UNITED STATES. AND SO, UNTIL THOSE ISSUES ARE RESOLVED, WE'LL CONTINUE TO SEE PRESSURE AT THE PUMP WITH PRICES. AND RESOLUTION IN SIGHT DEPENDS ON WHAT'S GOING ON AT THE FEDERAL LEVEL, WHICH I THINK WE CAN ALL AGREE MEANS THAT WE'LL JUST HAVE TO SIT IN THIS UNCERTAINTY FOR A WHILE. WITH REGARD TO NVIDIA AND THE EQUITY MARKETS, I THINK WHAT'S REALLY DRIVING THE POSITIVITY ARE THE HOPEFUL EXPECTATIONS AROUND AI, AROUND PRODUCTIVITY, AROUND EFFICIENCIES THAT WE HOPE WILL GLEAN FROM SOME OF THOSE INNOVATIONS. AND THAT IS REALLY CONTINUING TO DRIVE HOPEFUL OUTCOMES IN THE EQUITY MARKETS. SO, ON THE ONE HAND, YOU HAVE REALLY HIGH GAS PRICES, REALLY HIGH PRESSURE ON THE CONSUMER. 
          ON THE OTHER, YOU HAVE THIS REALLY HOPEFUL EQUITY MARKET, AND THOSE THINGS SEEM TO BE IN CONFLICT WITH EACH OTHER. I THINK REALISTICALLY, UNTIL WE HAVE REAL TANGIBLE DATA FROM THE FED, FROM IRAN, FROM, YOU KNOW, WHAT'S GOING ON THERE, WE'RE JUST GOING TO LIVE IN THIS SPACE. AND SO, I SAY THAT TO SAY, ASK US NEXT QUARTER HOW THINGS WENT, AND HOPEFULLY WE'LL HAVE A LITTLE BIT MORE CLARITY. 
          GREAT. WELL, THANK YOU VERY MUCH. BUT IN TERMS OF OUR PORTFOLIO HERE AT EAST BAY PARKS, BECAUSE WE'RE, AS YOU SAY, WE CAN TAKE ADVANTAGE OF THESE HIGHER INTEREST RATES ON THE SHORT-TERM BONDS. AND SO EVEN THOUGH THE VALUE OF OUR PORTFOLIO IS GOING DOWN, AS LONG AS WE'RE NOT SELLING THOSE BONDS, WE'RE ACTUALLY GAINING FROM THIS. IS THAT CORRECT? YEAH, I THINK THAT'S ACCURATE. 
          I MEAN, ONE THING I WILL SAY IS THAT, YOU KNOW, WE MAY SELL SOME SECURITIES AT A LOSS, BUT THE BENEFIT TO THAT IS THAT WE'RE BEING ABLE TO INVEST IN MUCH HIGHER-YIELDING SECURITIES. 
          YOU KNOW, YOUR PORTFOLIO YIELDED COST IS VERY ATTRACTIVE. I BELIEVE IT WAS A 4.35%, IF I HAVE THAT CORRECT, COMPARED TO A HISTORICAL AVERAGE, YOU KNOW, VERY, VERY LOW. SO, YOU ARE DEFINITELY BENEFITING FROM HIGHER INTEREST RATES RIGHT NOW. AND THE MARKET AS A WHOLE IS AS WELL, AS YOU KNOW, THE FED HAS BASICALLY SAID, WE'RE GOING TO HOLD OFF ON OUR, YOU KNOW, EASING POLICY JUST TO SEE HOW THINGS ARE GOING. 
          RATES ARE STAYING ELEVATED. 
          AND WE'RE ABLE TO REALLY TAKE ADVANTAGE OF THAT. THANK YOU. NOT THAT I WANT ALL THE CHAOS IN THE MARKET, BUT I'M HAPPY THAT ATLEAST WE'RE ABLE TO TAKE ADVANTAGE OF THE HIGHER RATES. 
          BENEFITS OF ACTIVE MANAGEMENT. 
          WELL, THANK YOU. ANY OTHER QUESTIONS FROM BOARD MEMBERS? COMMENTS? ANY COMMENTS FROM THE PUBLIC? HEARING NONE, WE HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD OF DIRECTORS THE ACCEPTANCE OF THE QUARTERLY REPORT. BUT, JUSTIN, BEFORE YOU LEAVE. I DON'T THINK THIS IS ONLY MY OPINION, BUT I KNOW THAT OF ALL OF OUR CONSULTANTS AND ADVISORS, YOU ARE THE MOST IN TUNE WITH THE PARK DISTRICT. WHERE HAVE YOU BEEN HIKING LATELY? OH, MAN. AND DID YOU ACCEPT THE TRAILS CHALLENGE? I THINK I GAVE YOU THE BOOKLET LAST TIME. YOU 
          [00:40:01]
KNOW, I SHARED IT WITH MY PARTNER, AND WE WANT TO TRY TO GET EVERY PUNCH HOLE SO THAT WE CAN GET THE I WANT TO SAY THERE'S A STICKER AT THE END OF THE DAY. SO, YES, WE'RE AMPED TO DO THAT. AND MAYBE YOU'LL SEE US AT REDWOOD REINHARDT THIS WEEKEND. 
          EXCELLENT. THAT'S GREAT TO HEAR. THANK YOU. WE HAVE A MOTION. AND A SECOND. IF THERE'S NO FURTHER DISCUSSION, ALL IN FAVOR SIGNIFY BY SAYING AYE. AYE. MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH FOR YOUR PRESENTATIONS. AND WE'LL MOVE NOW TO THE RECOMMENDATION OF THE FULL BOARD OF DIRECTORS TO ACCEPT THE FIRST QUARTER 2026 GENERAL FUND AND OTHER GOVERNMENTAL FUNDS FINANCIAL REPORTS. WELCOME. THANK YOU. 
          GOOD MORNING EVERYONE, MY NAME IS CARREN SIKAT I'M THE ASSISTANT FINANCE OFFICER IN FINANCE AND MANAGEMENT SERVICES. 
          SO, TODAY I WILL BE PRESENTING THE FIRST QUARTER 2026 GENERAL FUND AND OTHER GOVERNMENTAL FUNDS FINANCIAL REPORTS SO THIS REPORT WILL COVER THE FINANCIAL ACTIVITY OF THE PARK DISTRICT THROUGH THE MARCH 31ST, 2026. 
          SO, THROUGHOUT THE PRESENTATION, I'LL BE PROVIDING HIGHLIGHTS OF OUR REVENUES, EXPENDITURES, DIVISION LEVEL SPENDING, STAFFING VACANCIES, AND UPDATES ON THE GRACING PROGRAM AND SPECIAL FUNDS. 
          SO, BEGINNING WITH THE GENERAL FUND SUMMARY, REVENUES YEAR TO DATE IS $20.7 MILLION, OR 9% OF OUR ANNUAL BUDGET. OUR EXPENDITURES IS AT $60.4 MILLION, OR 25% OF OUR BUDGET. SO, THIS RESULTS IN A NET USE OF $39.6 MILLION FOR Q1. SO, THIS SPENDING PATTERN IS VERY TYPICAL FOR FIRST QUARTER AS MAJOR REVENUE SOURCES, WHICH IS PROPERTY TAXES, AS YOU ALL KNOW, WE DON'T GET THAT UNTIL MID-APRIL AND DECEMBER OF EVERY YEAR. SO, LOOKING DEEPER INTO OUR REVENUES, PROPERTY TAXES AT $14.1 MILLION, OR 6.6% OF THE BUDGET, WHICH IS NORMAL TIMING. AS YOU CAN SEE, IT'S ABOUT THE SAME FROM LAST YEAR. CHARGERS FOR SERVICES IS AT $1.7 MILLION, OR 14.4%. WHICH IS SLIGHTLY AHEAD OF LAST YEAR AT 11.7. OUR MISCELLANEOUS REVENUE, SO SORRY ABOUT THIS ONE, THIS WASN'T UPDATED, BUT THE MISCELLANEOUS REVENUE IS AT 1.1 MILLION OR NEARLY 92% OF THE BUDGET. SO LET ME EXPLAIN ON THIS BECAUSE IT LOOKS LIKE WE COLLECTED EVERYTHING. 
          SO OUT OF THAT 1.1 MILLION, 850 MILLION OF THAT IS ACTUALLY FROM PRIOR YEAR REVENUES. AND WE HAVE FOR FINANCIAL REPORTING PURPOSES WHAT WE CALL AVAILABILITY PERIOD, WHICH IS THE 60-DAY PERIOD FROM THE TIME THAT WE BILL THESE INVOICES. AND IF THEY ARE NOT COLLECTED, THEN WE MOVE THAT TO THE NEXT YEAR. SO, IF I WERE TO EXCLUDE THE $850 MILLION OUT OF THE $1.1 MILLION, OUR TOTAL REVENUES REPORTED FOR 2026 IS ONLY AT $286,000. 
          WHICH IS 23% OF THE BUDGET AMOUNT. SO, THIS MISCELLANEOUS REVENUE ITEM INCLUDES INTERAGENCY AGREEMENTS AND GRANTS. AND THEN ANOTHER CHANGE THAT WE DID FOR 2026, AS YOU CAN SEE, BEFORE WE WOULD LUMP IN TOGETHER THE INVESTMENTS, WHICH IS NOT BUDGETED. SO, THIS TIME WE HAVE THAT, AS YOU CAN SEE, WITHOUT THE AMENDED BUDGET, THE INVESTMENT OTHER WHICH WE HAD POSTED 3.2 MILLION FOR THIS FIRST QUARTER, WHICH IS SLIGHTLY LOWER THAN LAST YEAR AT 3.3 MILLION. AND THEN ON THIS SLIDE, YOU WOULD SEE THE SPENDING BY DIVISION SO FAR THIS YEAR. 
          SO, WE DO HAVE THE EXECUTIVE AND LEGISLATIVE AT 17.1%. WE HAVE THE DISTRICT-WIDE SUPPORT AT 17.8%. THE OPERATIONS AT 20.9%, WHICH ALIGNS WITH THE PRIOR YEAR PACING. 
          AND THEN, AS YOU ALL KNOW, WE DO HAVE THIS NEW DIVISION CALLED FACILITIES AND INFRASTRUCTURE AT 16.8%, ACQUISITIONS, STEWARDSHIP, AND DEVELOPMENT AT 18.4%, AND LASTLY, THE PUBLIC SAFETY AT 24%. SO, ACROSS ALL DIVISIONS, EXPENDITURES ARE WITHIN EXPECTED RANGE FOR Q1 WITH NO AREA SHOWING OF UNEXPECTED VARIANCES. SO, THIS CHART VISUALIZES EACH DIVISION'S FIRST QUARTER SPENDING RELATIVE TO ITS ANNUAL BUDGET. SO, AS YOU CAN SEE, MOST DIVISIONS FALL BETWEEN 17 
          [00:45:01]
TO 23% OF THE BUDGET SPENT, WHICH IS APPROPRIATE FOR FIRST QUARTER OPERATIONS. 
          AS YOU CAN SEE, TOO, WE HAVE THE OPERATIONS AND PUBLIC SAFETY BEING THE DISTRICT'S LARGEST RESOURCE AREAS WHICH IS CONSISTENT WITH OUR CORE SERVICE DELIVERY. 
          THEN I WAS TOLD IN THE LAST MEETING THAT YOU GUYS ARE VERY MUCH INTERESTED TO HAVE AN INFORMATIONAL UPDATE ON THE DISTRICT'S CATTLE GRAZING PROGRAM. SO GRAZING IS NOT JUST A REVENUE PROGRAM FOR THE PARK DISTRICT, BUT IT'S ALSO A LAND STEWARDSHIP TOOL. 
          SO, THE STAFF IN THE WILDLAND VEGETATION MANAGEMENT, WHICH IS UNDER ASD, IS IN CHARGE OF DETERMINING THE GRAZING AREAS, THE STOCKING LEVELS, AND THE ECOLOGICAL OBJECTIVES. 
          SO, RANCHERS OPERATE UNDER THE DISTRICT'S GRAZING LICENSES AND REPORT ACTUAL LIVESTOCK USE IN WHAT WE CALL ANIMAL UNIT MONTHS OR AUMS. SO, THE DISTRICT BASED THIS AUM ON THE CALIFORNIA'S CATTLE MARKET OVER THE MONTH OF JUNE. AND I BELIEVE WE USE CATTLE FAX AS THE RESOURCE FOR THIS RATE. SO, THE FINANCE DEPARTMENT BILLS TO RENT TWICE A YEAR. SO THAT'S EVERY JUNE 15 AND DECEMBER 15 BASED ON THE ACTUAL USE MULTIPLIED BY THE ANNUAL AUM RATE. SO, REVENUES VARY DEPENDING ON FORAGE CONDITIONS, THE WEATHER, THE STOCKING LEVELS, AND THE LAND MANAGEMENT NEEDS. 
          SO, THIS PROGRAM SUPPORTS VEGETATION MANAGEMENT, WILDLIFE RISK REDUCTION, NATIVE GRASSLAND HEALTH, AND HABITAT PROTECTION. SO HERE WE JUST HAVE KIND OF LIKE HOW WE CALCULATE THE REVENUE. SO, AS YOU CAN SEE HERE IN OUR EXAMPLE, WE HAVE THE ACTUAL USE AND THEN THE AUM RATE IS BEING MULTIPLIED TO THAT AND THEN WE DO HAVE THE INVOICE AMOUNT. AND WE DO HAVE A NET 30 FOR OUR INVOICES. 
          SO, I JUST WANT TO SHOW HERE ON THIS GRAPH HOW WE'RE DOING SINCE 20. SO, THIS CHART SHOWS THE GRACING REVENUES FROM 2010 THROUGH 2025. SO, AS YOU CAN SEE, OUR REVENUES HAVE GENERALLY RISEN OVER TIME, AND IT'S DRIVEN BY THE INCREASES IN THE AUM FEE, PARTICULARLY IN 2024 AND 2025. SO, IF YOU WOULD RECALL IN KATIE'S PRESENTATION LAST TIME, WE HAVE REPORTED ROUGHLY $1.4 MILLION IN 2025. AND THEN JUST TO GIVE YOU AN IDEA WHERE WE'RE AT ON THIS, BECAUSE I JUST DISCUSSED EARLIER THAT WE DON'T BUILD UP. WE BILL TWICE A YEAR, APRIL 15, DECEMBER 15. SO, FOR THIS YEAR, WE HAVE BUDGETED $1.6 MILLION. 
          SO THAT'S NOW ALIGNING TO OUR HISTORICAL REVENUES BECAUSE I BELIEVE LAST COUPLE OF YEARS, WE'RE ONLY BUDGETING IT FOR LESS THAN A MILLION. SO NOW WE'RE TRYING TO ALIGN IT BASED ON OUR HISTORICAL REVENUES AS REPORTED. AND THEN OUT OF THAT $1.6 MILLION, BECAUSE WE HAVEN'T REALLY BILLED INVOICES, WE HAVE ONLY REPORTED $176 THOUSAND. SO HOPEFULLY, IN THE Q2 WE'LL SEE THAT TREND GO UP AND ALIGN WITH THE EXPECTATION FOR THAT QUARTER. AND THEN ANOTHER ITEM THAT WAS ADDED IS THE VACANCY REPORT SO AS OF MARCH 31ST THE DISTRICT'S OVERALL VACANCY RATE IS AT 8.1% WITH 80.5 VACANT FTES OUT OF THE 997.7 AUTHORIZED FTE SO BY DIVISION, WE HAVE THE EXECUTIVE AND LEGISLATIVE AT 15% VACANCY RATE, PUBLIC SAFETY AT 11.2%, THE DISTRICT-WIDE SUPPORT AT 8.9%, FACILITIES AND INFRASTRUCTURE 7.6%, AS WELL AS ASD FOR THAT SAME RATE, AND THEN OPERATIONS AT 6.3%. 
          SO, I JUST WANT TO ALSO NOTE THAT OUR BUDGET HAS A BUILT-IN 4% VACANCY RATE. SO STILL OUR HR RECRUITMENT ACTIVITY CONTINUES ACROSS MULTIPLE DIVISIONS TO SUPPORT THE STAFFING NEEDS. 
          AND THEN THERE WAS ALSO A REQUEST FOR PRESENTATION OF THE BOARD'S OWN BUDGET. SO HERE, THE BOARD EXPENDITURE SO FAR IN Q1 TOTALED $49,966, WHICH IS 10.9% OF THE BUDGET. SO, IN SUMMARY, WE HAVE THE SALARIES AND BENEFITS AT 25.8%, SERVICES AT 3.7%, SUPPLIES AT 0.2%. SO LAST YEAR'S NUMBERS INCLUDED ELECTION-RELATED ACTIVITIES, SO THE YEAR-TO-YEAR COMPARISON ISN'T DIRECT. AND THEN FOR MORE DETAILED INFORMATION ABOUT THE BOARD'S BUDGET TO ACTUALS, YOU MAY REFER TO YOUR ATTACHMENT FEE 
          [00:50:02]
OF THE PACKET ON PAGE 121. 
          OKAY, LAST BUT NOT THE LEAST, I DO HAVE THE OTHER GOVERNMENTAL FUNDS. SO, I HAVE HERE THE SPECIAL REVENUE FUNDS, WHICH INCLUDES THE MEASURE FF, LLD FUNDS, CFDS, AND ZONE OF BENEFIT AND MEASURE WW LOCAL GRANTS. WE ALSO HAVE THE PROJECT FUNDS WHERE VARIANCES ARE TIED TO THE MULTI-YEAR PROJECT TIMING. AND THEN OUR DEBT SERVICE FUNDS, WHICH INCLUDE THE SCHEDULED MEASURE WW BOND AND PROMISSORY NOTE PAYMENTS. AND LASTLY, OUR ISF, WHICH INCLUDES THE WORKERS' COMP, GENERAL LIABILITY, EMPLOYEE BENEFITS, MIR, AND THE MER FUNDS. SO, NO UNUSUAL ACTIVITY IS REPORTED FOR Q1, BUT I THINK WE HAVE THE ATTACHMENT B ON PAGE 120 FOR MORE INFORMATION. AND THAT CONCLUDES THE REPORT FOR Q1. 
          AND AS EARLIER THIS ITEM IS ONLY INFORMATIONAL BUT I'M HAPPY TO ANSWER ANY QUESTIONS. 
          ANY QUESTIONS OR COMMENTS FROM BOARD MEMBERS? WELL FIRST OF ALL THANK YOU VERY MUCH FOR THE REPORT, VERY HELPFUL. 
          SO GOING BACK TO THE VACANCY RATE, I HAD A QUESTION ABOUT THAT. 
          SO, OUR VACANCY RATE THAT WE'VE BUDGETED IN IS 4% AND WE'RE CURRENTLY FOR THE FIRST QUARTER AT ABOUT 8%. OBVIOUSLY, I HOPE WE CAN FILL THOSE POSITIONS, BUT IF IT WERE TO STAY AT 8% HYPOTHETICALLY OVER THE COURSE OF THE YEAR, HOW MUCH REVENUE WOULD THAT, NOT REVENUE, BUT HOW MUCH SAVINGS WOULD THAT BE? I DON'T EXPECT YOU TO CALCULATE IT OFF THE TOP OF YOUR HEAD. 
          THERE'S SO MANY FACTORS RIGHT NOW. AS YOU ALL KNOW, PAS ARE ALSO CURRENTLY IN NEGOTIATIONS, SO WHATEVER INCREASES THEY WOULD END UP. 
          YOU KNOW, SO THAT WOULD IMPACT AS WELL THE SALARIES AND BENEFITS EXPENDITURE, WHICH IS OUR LARGEST EXPENDITURE. SO, I THINK THAT'S THE MAIN DRIVER. 
          YEAH, AND WE CAN GET BACK WITH YOU WITH KIND OF THE ROUGH PROJECTIONS BECAUSE IT'S A MOVING TARGET BECAUSE IT JUST DEPENDS ON WHAT THE POSITIONS ARE. WELL, EXACTLY. RIGHT. SO, YOU KNOW, WE MAKE PROGRESS ON ONE END AND THEN, YOU KNOW PEOPLE END UP LEAVING SO. BUT WE CAN GIVE YOU SOME ROUGH PROJECTIONS BECAUSE YOU CAN SEE FROM, LIKE, EVEN WHEN WE DID THE END OF LAST 2025, YOU COULD SEE WHERE THE SALARY SAVINGS KIND OF CAME IN AT. BUT WE CAN DEFINITELY GIVE YOU INFORMATION. RIGHT. 
          WHERE DID THEY COME IN LAST YEAR? DO YOU RECALL? PA HAD A SIGNIFICANT PUBLIC SAFETY HAD A SIGNIFICANT SAVINGS BECAUSE WE HAD BUDGETED A LOT OF THE RETIREMENT LIKE THE PREVIOUS CALPERS RATE INSTEAD OF LIKE THE NEW CALPERS RATE AND SO THAT HAD SOME SAVINGS IN THERE AND THEN BUT NOW PA IS LIKE ALMOST COMPLETELY FILLED ALL THEIR VACANCIES. RIGHT. I THINK RIGHT NOW YOU'RE SEEING A LOT OF THE POSITIONS IS IN THE GENERAL MANAGER'S OFFICE IS THERE'S SOME VACANCIES IN THERE SO THAT'S WHAT'S KIND OF DRIVING THE 15% AND THEN OPS HAS BEEN LIKE REALLY BUMPING UP FILLING RECRUITING PARK RANGERS AND FILLING THOSE POSITIONS SO, SO BUT WE CAN WE CAN GET THEM ROUGH PROJECTIONS ON WHAT IT'S GOING TO BE GOING FORWARD. AND I THINK I JUST WANT TO GIVE CREDIT TO JESSICA ROMEO AND HER RECRUITING TEAM BECAUSE THESE REPORTS, LIKE BEFORE WHEN IT WAS ASKED, IT WAS VERY HARD TO GET THIS INFORMATION BECAUSE UNFORTUNATELY OUR CURRENT FINANCIAL SYSTEM DOES NOT EASILY GIVE US VACANCY REPORTS. 
          BUT SHE'S PUT A CONCERTED EFFORT TO HAVE LIKE REAL MONTHLY REPORTS THAT SHOWS US THE VACANCIES SO THAT WE CAN EASILY PULL THIS INFORMATION TO PROVIDE TO YOU GUYS FOR THE UPDATES. THANK YOU. 
          GREAT. AND A FOLLOW-UP TO THAT, IF I MAY. SO, WE BUILD IN A 4% VACANCY RATE, WHICH I ASSUME IS A STANDARD. 
          THE INDUSTRY AND OTHER PEOPLE DO IT. 8% IS, ARE OTHER AGENCIES LOOKING AT THAT? I HEAR THAT PEOPLE ARE HAVING A HARD TIME HIRING PEOPLE. IS THAT ANECDOTALLY CORRECT? OR IS THIS, WE HAVEN'T TRACKED THIS IN THE PAST. SO, IS THIS A BIG DEAL OR A LITTLE DEAL, HAVING 8%? I THINK HAVING AN 8% VACANCY RATE IS A GREAT ACCOMPLISHMENT FOR OUR TEAM BECAUSE I THINK WE HAVEN'T BEEN, YOU KNOW, LIKE, REPORTING ON IT REGULARLY, BUT IT WAS A LOT HIGHER IN THE PAST. THAT'S WHY WE HAD A LOT OF SALARY SAVINGS THAT WAS SUPPORTING US AND REDUCING OUR NEED TO TAP INTO THE FUND BALANCE. BUT I DON'T HAVE THE ACTUAL HISTORIC NUMBERS OF ANNUALLY WHERE WE LANDED, BUT WE CAN DEFINITELY GET YOU THAT DIRECTOR ALSO. OKAY, AND THEN I'M TRYING TO THINK. I KNOW WE DON'T TRACK THIS, BUT IT WOULD BE INTERESTING. 
          IT IS CONSIDERED A COST SAVINGS. IT USED TO BE A TECHNIQUE IN THE OLD DAYS. BUT DO WE, OF THE 8% VACANCY RATES, HAVE WE FILLED A PERCENTAGE 
          [00:55:02]
IN ACTING POSITIONS? I MEAN, THEORETICALLY, EVERY ONE OF THESE POSITIONS IS IMPORTANT, ESPECIALLY AS WE ENTER THE SPRINGTIME AND THE BIG-TIME SEASONS FOR THE PARK DISTRICT WE NEED TO STAFF UP. DID WE HIRE TEMPORARIES FOR THIS OR, OR ACTING AS PART OF ME, ACTING POSITIONS. I WOULD NEED TO CHECK WITH HR ON WHAT THAT, WHAT THAT KIND OF WHAT THAT'S LOOKING LIKE RIGHT NOW. OKAY. THANK YOU. JOHN? I WOULD LIKE TO THANK YOU FOLKS FOR RESPONDING TO THE ASK BY US. ABOUT, I CAN'T FIND IT, BUT THE BOARD OF DIRECTORS, YOU KNOW, I ALWAYS LOOK AT THAT AND GO, WE'VE GOT A HALF A MILLION DOLLARS, WE ONLY SPEND ONE POINT TEN, ONE TENTH OF A PERCENT ON IT. 
          AND CONTINGENCY FUNDS, I THINK, ARE AN INTERESTING, OBVIOUSLY INTERESTING TO BOARD MEMBERS. AND I THINK WITH THESE TYPE OF NUMBERS AND ONCE WE START LOOKING AT OUR BOARD OPERATING GUIDELINES, I THINK THAT'LL FREE UP A LOT OF INTERESTING, GREAT THINGS THAT WE CAN DO. 
          AND THEN, I DON'T KNOW, I LOOK AT THESE WHEN WE TALK ABOUT THESE SPECIAL REVENUE FUNDS AND LOOK AT THEM, AND THEY'RE ALL THE SAME ALL THE TIME. AND I KNOW IT'S BY THE LIGHTING AND LANDSCAPING FUNDS, THE COMMUNITY FINANCE DISTRICTS, AND THE ZONES OF BENEFITS. THOSE ARE ALL LOCKED IN. IT SEEMS LIKE WE COULD NEVER INCLUDE INFLATIONARY THINGS IN THAT. 
          WHEN WE DID THE LIGHTING AND LANDSCAPING DISTRICT AT ANYWHERE, EAST COUNTY ESPECIALLY, IT'S LOCKED IN. 
          THEY'RE STUCK AT PAYING $2.35 OR SOMETHING WHEN THAT WAS 30 YEARS AGO. AND OBVIOUSLY WE KNOW THINGS ARE DIFFERENT AND OUR COSTS ARE INCREDIBLE. IS THERE LEGALIZED, LEGALLY, IS THERE ANY WAY OF DOING ANYTHING ELSE OTHER THAN A PROP 218 VOTE? I THINK THAT IS A SUBJECT THAT WE COULD DEFINITELY PROVIDE SOME BACKGROUND ON. I DON'T HAVE A RESPONSE AT THIS POINT, BUT IT'S SOMETHING WE CAN DEFINITELY DIVE INTO AND GIVE YOU SOME INFORMATION AT A LATER TIME. OKAY, GREAT. I THINK IF WE'RE LOOKING TOWARDS FINDING REVENUE, SAVING MONEY, BUT ALSO HAVING PEOPLE PAY THEIR FAIR SHARE I THINK IS AN INTERESTING OPPORTUNITY MAYBE. 
          YEAH, AND I WOULD JUST SAY WE'RE BRINGING THE LIGHTING AND LANDSCAPING DISTRICTS TO THE FULL BOARD ON THE 19TH WHEN WE HAVE THE MEETING AT BIG BREAK AND SO THAT'S THE OPPORTUNITY THE ZONE OF BENEFITS DO INCREASE THEY HAVE COST OF LIVING INCREASES BUT THE LLDS DO NOT BUT WE CAN BRING MORE WE CAN BE PREPARED TO ANSWER MORE QUESTIONS ON THAT UNLIKE WHAT THE BOARD'S ABILITY IS TO CHANGE THOSE RATES BECAUSE YOU ARE CORRECT THEY HAVEN'T CHANGED SINCE THEY WERE INITIALLY ESTABLISHED. 
          THANK YOU. ALL RIGHT. THANK YOU. 
          IF THERE ARE NO FURTHER QUESTIONS FROM BOARD MEMBERS, ANY MEMBERS OF THE PUBLIC HAVE ANY COMMENTS? THERE IS NO PUBLIC COMMENT. OKAY. THEN WE DO HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD OF DIRECTORS ACCEPTANCE OF THE FIRST QUARTER 2026 GENERAL FUND AND OTHER GOVERNMENTAL FUNDS FINANCIAL REPORTS. SO, MOVED. THANK YOU. 
          SECOND. WE HAVE A MOTION AS SECOND. THERE'S NO FURTHER DISCUSSION. ALL IN FAVOR SIGNIFY BY SAYING AYE. AYE. A MOTION PASSES UNANIMOUSLY. THANK YOU VERY, VERY MUCH FOR YOUR REPORT. WE'LL MOVE NOW TO, TO THE PARK DISTRICT'S INSURANCE PROGRAM. WELCOME, KATIE. WAIT, I THOUGHT WW WAS NEXT. OKAY, LOOK THAT WAY. 
          YEAH, THE WW REPORT. OKAY. 
          GOOD MORNING, BOARD FINANCE COMMITTEE. KATIE DIGNAN, ACTING ASSISTANT GENERAL MANAGER OF FINANCE AND MANAGEMENT SERVICES. AND I'M ALSO GOING TO BE JOINED TODAY BY HELEN WU, OUR CAPITAL FINANCE ADMIN ANALYST, TO GIVE YOU AN UPDATE ON OUR EXCITING NEW MEASURE WW PROGRESS REPORT THAT SPANS FROM 2008 TO 2025. SO, A LITTLE BIT OF BACKGROUND ON MEASURE WW. IT WAS PASSED BY 72% OF THE VOTERS IN ALAMEDA AND CONTRA COSTA COUNTIES IN NOVEMBER OF 2008. IT AUTHORIZED $500 MILLION IN CAPITAL BONDS. 25% OF THAT ALLOCATION WAS FOR A LOCAL GRANT PROGRAM. 75% FOR DISTRICT CAPITAL PROJECTS, WHICH INCLUDED BOTH LAND ACQUISITION AND DEVELOPMENT. 
          AND IT'S ALLOCATED BASED ON A POPULATION PER METRO AREA, OUR WEST, SOUTH, AND DIABLO METROPOLITAN PLANNING AREAS IS IDENTIFIED IN THE PARK 
          [01:00:01]
DISTRICT'S MASTER PLAN. AND IT DOES NOT INCLUDE MURRAY TOWNSHIP, WHICH IS THE LIVERMORE VALLEY AND UNINCORPORATED EASTERN ALAMEDA COUNTY. SO, AS I SAID, IT'S BROKEN OUT BY METROPOLITAN CENSUS TRACTS IN THE AREAS. SO, WHEN WE INITIALLY WENT OUT, THE 2020 CENSUS HAD 38% IN THE WEST, 35% IN DIABLO. 27% IN THE SOUTH AND OUR TOTAL APPROPRIATIONS BY METRO AS OF JANUARY 2026 IS LOOKING AT 37% IN THE WEST 43% IN DIABLO AND 20% IN THE SOUTH AND THIS IS BASED ON JUST HOW PROJECTS HAVE BEEN MOVING FORWARD IN EACH OF THOSE METROPOLITAN AREAS AS OF JANUARY 2026 WE'VE 214.6 MILLION HAS BEEN APPROPRIATED FOR PARK DISTRICT PROJECTS. SO A TIMELINE TO KIND OF GO THROUGH THIS PROGRESS REPORT. 
          SO BASED ON FEEDBACK WE RECEIVED LATE LAST YEAR, PARTICULARLY DURING THE OCTOBER BOARD STUDY SESSION WHERE WE STARTED DISCUSSING MEASURE WW TRANSFERS, WE IDENTIFIED THE NEED TO HAVE A MORE USER-FRIENDLY REPORT ON WW PROGRESS. SO, FROM THE WINTER TO THE SPRING, THE CAPITAL FINANCE UNIT HAS WORKED WITH DESIGN AND CONSTRUCTION, PLANNING, LAND ACQUISITION, STEWARDSHIP, PARK OPERATIONS, AND GOVERNMENTAL AFFAIRS TO DRAFT THIS REPORT. AND SO, I WANT TO MAKE SURE I GIVE CREDIT TO ALL OF THE TEAM MEMBERS THAT ARE LISTED ON THE BACK OF THE REPORT THAT PLAYED A PART IN PUTTING THIS REPORT TOGETHER. TODAY WE'RE HERE PRESENTING IT TO THE FINANCE COMMITTEE, AND OUR PLAN IS TO NEXT GO TO THE PAC FINANCE COMMITTEE IN JUNE, AS WELL AS THE FULL PARK ADVISORY COMMITTEE, AND THEN WE'LL PRESENT IT TO THE FULL BOARD. 
          AND WITH THAT, I'M GOING TO HAND OVER TO HELEN, WHO'S GOING TO COVER HOW TO READ THE MEASURE WW PROGRESS REPORT. THANK YOU, KATIE. AS SHE MENTIONED, OH YES, I WILL TAKE THE, I'M HELEN WU, ADMINISTRATIVE ANALYST 2 IN OUR CAPITAL FINANCE UNIT, AND I'LL WALK THROUGH HOW TO READ THE MEASURE WW PROGRESS REPORT. SO ACTUALLY, AT THE BEGINNING OF THE REPORT, YOU'LL FIND A TABLE OF CONTENTS, INTRODUCTION, AN OVERVIEW OF THE METRO AREA, INCLUDING A MAP, AND INVESTMENT AREA SUMMARIES THAT GIVE YOU A QUICK VIEW AT A GLANCE OF THE EXPENDITURES AGAINST THE APPROPRIATIONS, AGAINST THE ALLOCATIONS FOR EACH INVESTMENT AREA. IF YOU'RE LOOKING AT THOSE PAGES, WHICH STARTS ON PAGE 11. JUST KIND OF LIKE A, YOU KNOW, QUICK GLANCE AT IT. GREEN MEANS THAT FUNDING HAS BEEN SPENT, ORANGE MEANS THAT WE'RE STILL WORKING ON ACTIVE PROJECTS, AND BLUE MEANS THAT WE STILL HAVE SOME APPROPRIATING TO DO. ON PAGE SIX YOU'LL FIND DEFINITIONS AND ACRONYMS USED THROUGHOUT THE REPORT. AND SO, FOR EXAMPLE, LIKE WHAT'S THE DIFFERENCE BETWEEN AN ALLOCATION AND APPROPRIATION, WHICH I STILL HAVE TO REMIND MYSELF, EVEN THOUGH I'VE LOOKED AT THIS REPORT EVERY DAY FOR LIKE THE LAST FEW MONTHS. AND THEN WE DO GO INTO REPORTS FOR EACH OF THE 67 INVESTMENT AREAS AND THE DISTRICT WIDE CONTINGENCY. AND ON THOSE PAGES, LET ME GO TO THE NEXT SLIDE YOU WILL FIND AN OVERALL VIEW OF THE ALLOCATION, THE APPROPRIATION, AND THE UNAPPROPRIATED AMOUNT, AND OTHER FUNDS LEVERAGED INCLUDING GRANT FUNDING. AND THEN WE HAVE A DESCRIPTION OF THE COMMITMENT FROM THE ORIGINAL 2008 PROJECT LIST. AND THEN WE HAVE ACCOMPLISHMENTS, AND WE DID IN A COUPLE OF INSTANCES GO INTO PROJECTS NOT FUNDED BY WW THAT WENT TOWARDS THE COMMITMENT. SO, THE TWO THAT I CAN THINK OF ARE DUMBARTON QUARRY AND DOOLITTLE. AND THEN YOU HAVE A LIST OF COMPLETED PROJECTS AS WELL AS CURRENT AND FUTURE PROJECTS, AND THEN FUTURE PLANS, AND THEN A MORE DEEPER VIEW OF THE FUNDING, WHICH INCLUDES ALLOCATIONS, TRANSFERS, APPROPRIATIONS, AND EXPENDITURES FOR ACQUISITION VERSUS DEVELOPMENT. 
          AND THEN AT THE BOTTOM OF EACH OF THOSE INVESTMENT AREA REPORTS THERE'S ALSO ANOTHER KEY OF ABBREVIATIONS USED IN THE PROJECT LIST. SO, FOR EXAMPLE, IF A PROJECT IS COMPLETED, IF IT'S COMPLETED BUT WITH ONGOING MONITORING, IF IT'S AN IMPLEMENTATION PHASE OR PLANNING AND DESIGN. AND THEN FINALLY, WE'VE ALSO NOTED IF PROJECTS HAVE BEEN FUNDED 
          [01:05:01]
BY MULTIPLE INVESTMENT AREAS. 
          SO, YOU'LL SEE THOSE PROJECTS MARKED WITH AN ASTERISK. AND LET'S SEE, THE NEXT SLIDE. AND THEN AT THE END OF THE REPORT, WE GO INTO THE LOCAL GRANT PROGRAM. 
          AND SO THOSE ARE LIKE LOCAL PARKS AND REC PROJECTS. YOU KNOW, THOSE ARE YOUR PLAYGROUNDS, YOUR ATHLETIC FIELDS, YOUR SPORTS CENTERS THAT HAVE BEEN FUNDED BY THE LOCAL GRANT PROGRAM, WHICH HAS BEEN FULLY APPROVED. 
          I THINK THERE'S JUST A FEW REMAINING PROJECTS THAT NEED TO BE DISPERSED AND CLOSED OUT. 
          AND THEN APPENDIX A IS A LIST OF ALL THE BOARD-APPROVED TRANSFERS BETWEEN EITHER, IT WAS EITHER BETWEEN INVESTMENT AREAS OR BETWEEN ACQUISITION AND DEVELOPMENT FUNDING. AND THEN APPENDIX B IS SENATE BILL 165, AND THAT IS AN ANNUAL REPORTING REQUIREMENT THAT WE HAVE FOR ANY VOTER-APPROVED LOCAL SPECIAL TAX OR LOCAL BOND MEASURE TO DISCLOSE THE USE OF THOSE PROCEEDS. AND THEN AS KATIE MENTIONED, ON THE BACK COVER, WE HAVE THE ACKNOWLEDGMENTS OF THE REPORT TEAM. SOME MEASURE WW REPORT HIGHLIGHTS. 
          SO, IN ADDITION TO THE $214.6 MILLION, THERE HAS BEEN AN ADDITIONAL $348.6 MILLION LEVERAGED THROUGH GRANTS AND OTHER FUNDING SOURCES. SO, THIS INCLUDES MATCHING GRANT FUNDS. 
          WE'VE COMPLETED COMMITMENTS IN FOUR OF THE 67 INVESTMENT AREAS. AND THAT INCLUDED OVER 230 PROJECTS. AND WE STILL HAVE SOME WORK IN REMAINING AREAS, AND THAT'S DEPENDENT ON FUTURE LAND ACQUISITION OPPORTUNITIES. 
          AND WE'LL CONTINUE TO ADD NEW PROJECTS TO FUTURE UPDATES OF THIS REPORT. AND THERE'S STILL A FEW TRANSFERS THAT WE ARE TRACKING DOWN THAT WE WILL ALSO ADD TO FUTURE REPORTS. AND AGAIN, THIS WILL BE REPORTED, THIS WILL BE UPDATED ANNUALLY AND POSTED ON THE DISTRICT WEBSITE. WE DO HAVE THIS CURRENT DRAFT ON OUR MEASURE WW PAGE ON THE WEBSITE FOR THE PUBLIC TO REVIEW. AND FINALLY, OUR RECOMMENDATION, WE REQUEST THAT THE BOARD FINANCE COMMITTEE REVIEW THE MEASURE WW PROGRESS REPORT AND DIRECT STAFF TO PREPARE INFORMATION FOR ACCEPTANCE BY THE BOARD OF DIRECTORS IN AUGUST OF 2026. THANK YOU, HELEN. ANY QUESTIONS, COMMENTS BY BOARD MEMBERS? I KNOW THIS IS A REALLY, I THINK WHEN WE, YOU KNOW, LAST YEAR WHEN WE ASK FOR A LITTLE BIT MORE DEEP DIVE INTO THIS MEASURE WW STUFF, WE REALIZED THAT IT WASN'T JUST, YOU KNOW, I ADD UP A FEW NUMBERS AND THROW THEM ON A SHEET OF PAPER AND YOU'RE DONE. WE KNOW THAT IT WAS SOMETHING VERY INVOLVED AND REQUIRED, AS YOU SAY, A WHOLE TEAM OF PEOPLE TO DO. 
          SO, IT'S GREAT TO HAVE THAT DOCUMENT THAT WE CAN REFER TO AND KEEP US A LITTLE SMARTER THAN WE ARE NOW, WHICH IS ALWAYS DESIRABLE, RIGHT? SO, THANKS FOR THE [INAUDIBLE] INTO THAT. 
          GREAT, THANK YOU FOR YOUR SUPPORT. YEAH, I'D ALSO LIKE TO THANK YOU FOR YOUR WORK ON THIS IT'S VERY HELPFUL IT'S I LIKE THE WAY IT'S LAID OUT AND I REALLY APPRECIATE THE TRANSPARENCY AROUND WHAT EXACTLY WE'VE DONE WHERE AND TO BE ABLE TO PROVIDE THAT TO THE PUBLIC IS VERY HELPFUL. 
          SO, THANK YOU. THANK YOU. AND I WILL ECHO THAT. I THINK THIS IS AN INCREDIBLE DOCUMENT. I LOVE IT. OTHER REPORTS I'VE SEEN THROUGHOUT THE YEARS, I MEAN, FOR ME, IT'S GOT COLOR, IT'S GOT PICTURES, COLOR PICTURES. 
          AND, YOU KNOW, IT'S PRETTY LINED UP OF WHERE THE MONEY WENT OR WHAT WAS PROMISED, WHAT WAS EXPENDED, WHAT'S THE FUTURE. THIS IS GREAT. THIS IS A WONDERFUL REFERENCE DOCUMENT THAT I WILL USE WITH CONSTITUENTS AND FELLOW BOARD MEMBERS AND EVERYBODY ELSE AS WE TRY TO WIND OUR WAY THROUGH THIS WHOLE PROCESS. 
          AND I JUST THINK IT'S GREAT. 
          THANK YOU VERY MUCH. THANK YOU ALL. ANY MEMBERS OF THE PUBLIC HAVE ANY COMMENTS? THERE IS NO PUBLIC COMMENT. HEARING NONE, WE DO HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD OF DIRECTORS ACCEPTANCE OF THE MEASURE WW PROGRESS REPORT. SO, MOVED. AND SECONDED. THANK YOU VERY MUCH. 
          YOU SAID IT OUT LOUD, AND I'LL SECOND IT. ALL RIGHT. 
          IF THERE ARE NO FURTHER COMMENTS, PLEASE SIGNIFY BY SAYING AYE IF YOU APPROVE. 
          AYE. AYE. THANK YOU. MOTION PASSES UNANIMOUSLY. THANK YOU VERY MUCH FOR THE REPORT AND EVERYBODY, AND PLEASE EXTEND OUR THANKS TO THE ENTIRE GROUP OF STAFF THAT'S ON THE BACK PAGE THAT DID THIS. 
          OKAY, NOW WE WILL MOVE TO THE INSURANCE. HI, IS THIS 
          [01:10:02]
ON? GREAT. HI, GOOD MORNING, FINANCE COMMITTEE BOARD MEMBERS. MY NAME'S MATT TARDIF. RISK MANAGER. SIX WEEKS INTO THE ROLE, I WOULD LIKE TO PUBLICLY SAY WITH ALMA PRESENT, WHO'S MY DIRECT SUPERVISOR, I'VE INHERITED A GREAT RISK MANAGEMENT PROGRAM. 
          I'M HERE TO PRESENT OUR INSURANCE PROGRAM RENEWAL AND I'M HAPPY TO PROCEED. WE ARE INVOLVED IN PRISM. PUBLIC RISK INNOVATION SOLUTIONS AND MANAGEMENT. THE INSURANCE PROGRAM GETS OUR GENERAL LIABILITY, PROPERTY, CYBER, WATERCRAFT, EXCESS WORKERS' COMPENSATION, AIRCRAFT WITH DRONE ENDORSEMENT, AND WE GET OTHER ENDORSEMENTS OR OTHER COVERAGES FROM ALLIANT FOR CRIME, AND OUR BOND IS THROUGH WESTERN SURREY. THE INSURANCE PROGRAM OVERVIEW. WE HAVE A FAVORABLE CLAIMS HISTORY AND ABILITY TO MANAGE CLAIMS WITHIN OUR SELF-INSURED LIMITS, MINIMAL RELIANCE ON EXCESS INSURANCE AUTHORITY. 
          CALIFORNIA MARKET CHALLENGES ACROSS ALL INDUSTRIES DUE TO CATASTROPHIC NATURAL DISASTERS AND HISTORICAL LOSSES. AS YOU ARE AWARE, WE HAVE A UNIQUE ENVIRONMENT IN CALIFORNIA, A LOT OF FEATURES, A LOT OF VARIABLES, NOT TO MENTION FIRES AND OTHER EVENTS. THE LIABILITY TREND, INCREASED SETTLEMENT VALUES IMPACT CLAIM ECONOMICS. IT'S QUITE AN ENHANCED MARKET AND DEMAND FROM CARRIERS AND INCREASED RESERVES IS RESULTING. THE CALIFORNIA INSURANCE LANDSCAPE, 2024 PROPERTY AND CASUALTY OVERVIEW. 
          WE WERE TOP IN THE NATION FOR DIRECT PREMIUMS, $94 BILLION EARNINGS. 12% OF THE ENTIRE U.S. PROPERTY INSURANCE INDUSTRY. THERE WAS A DECEMBER INSURANCE REFORM THAT OCCURRED WHICH AFFECTED THE MARKET. 2026, WE'RE AWARE OF PRIOR FIRE EVENTS. WHEN YOU TALK ABOUT RISK AND INSURANCE, I ALWAYS LIKE TO SAY CUE THE JAZZ MUSIC. 
          SO 2026, WE'RE TALKING ABOUT EL NINO CONDITIONS FORECASTED TO DEVELOP IN LATE SPRING AND SUMMER WITH A HIGH PROBABILITY OF STRENGTHENING INTO A STRONG EVENT BY FALL 2026, POTENTIALLY PERSISTING THROUGH THE END OF THE YEAR. 
          THIS COULD INTRODUCE WEATHER EVENTS AND ATMOSPHERIC RIVERS. 
          I'M NOT SURE THE EXACT NUMBER, BUT LET'S SAY FOR CONVERSATION, IT'S A 400-YEAR CYCLE. IT'S QUITE A DISTINCT EVENT, QUITE AN ANOMALY. SO, WE'LL WAIT AND SEE WHAT HAPPENS. OUR PROPERTY PROGRAM, $25,000 SELF-INSURED RETENTION LIMITS. 
          PRIOR LOSSES THAT WE'VE HAD OCCUR 2017 STORMS, 2020 VASCO HILLS RANCH FIRE, 2020 COVID-19 BUSINESS INTERRUPTION, WHICH THANKFULLY WERE WELL PASSED. 
          2021 MILLER KNOX FERRY POINT PIER COLLAPSE, 2023 WINTER STORMS, WHICH AFFECTED THE ENTIRE PRISON POOL OF 70 MILLION PLUS IN CALIFORNIA AND OVER A BILLION-DOLLAR ESTIMATE. 
          2023, WE HAD HEAVY EQUIPMENT AND VEHICLE LOSSES. WE'VE ADDED TO THE 2026. PARDON ME, MATT. 
          THIS IS VERY INFORMATIVE, BUT IT'S A LOT OF INFORMATION. CAN WE INTERRUPT YOU WITH QUESTIONS AS YOU GO ALONG? YOU'RE WELCOME TO. GREAT. I PROMISE IT'S RELEVANT. SURE. 
          SURE. I'LL DO MY BEST. THAT 2023 HEAVY EQUIPMENT THING. 
          WHAT IS THAT ALL ABOUT? IT SOUNDS OMINOUS. YES. I'M HAPPY TO DEFER TO ALMA. I DON'T HAVE THAT HISTORY YET. THANKS. HI, EVERYONE. ALMA BALMES, DIVISION LEAD OF HR. SO, THE 2023-2024 HEAVY EQUIPMENT LOSS WAS A SKID STEER THAT WAS LEFT AT A STAGING AREA, AND IT WAS STOLEN. WE DID OUR BEST TO TRY TO RECOVER IT, BUT UNFORTUNATELY THERE WASN'T TRACKER, GPS ON THE MACHINE, AND SO WE ENDED UP HAVING TO FILE AN EXCESS CLAIM, WHICH WE WERE ABLE TO RECOVER FUNDS FOR TO GET A REPLACEMENT. OKAY, YEAH, I DO REMEMBER THAT. I JUST WASN'T SURE THAT WAS IT. 
          YEAH, THAT WAS IT. SO, IT WAS BIG ENOUGH TO RISE TO BE THE FOURTH BULLET UP THERE. YEAH. 
          YEAH, BIG DEAL. OKAY, GOOD, THANK YOU. I MEAN, WHICH IS GOOD. IT SPEAKS TO THE FACT THAT WE'RE ABLE TO KIND OF MANAGE OUR LOSSES IN-HOUSE AND WITHIN OUR SELF-INSURED RETENTION. ALL RIGHT, THANKS. WE HAVE ADDED THE POINTE-MALATE STRUCTURES AND REAL PROPERTY TO OUR, I GUESS PORTFOLIO OF PARK PROPERTIES. THE RESULT OF THAT IS AN ESTIMATED PREMIUM 
          [01:15:02]
INCREASE FROM PRIOR YEAR OF 21%. SORRY, CAN YOU GO BACK THERE FOR JUST A SECOND? OF ALL OF THAT OR OF THE LAST POINT? SO, THE ESTIMATED PREMIUM INCREASE FROM ALL OF THIS STUFF OR JUST YOU'RE TALKING ABOUT FROM POINT MALATE? OVERALL. OH, OKAY. AND I'LL PROBABLY GET A SECOND QUESTION ON THE NEXT SLIDE, WHICH I'LL ANSWER, OR I'LL DISCLOSE. THE GENERAL LIABILITY PROGRAM, HIGHER FREQUENCY OF VERY LARGE LOSSES IS ACCELERATING THE HARD MARKET CONDITIONS. RISING CLAIMS COST IS INCREASING IN RESERVES, AND THOSE RISING CLAIM COSTS ARE REPLACEMENT COSTS OF ITEMS, NUCLEAR VERDICTS WHERE YOU HAVE VERY FAVORABLE OUTCOMES AS THEY RELATE TO LAWSUITS. PRISM, THE GENERAL LIABILITY CLAIMS THE LAST 10 YEARS, THE AVERAGE OF 126 CLAIMS PER YEAR, OUT OF THOSE, THEY EXCEEDED THE SELF-INSURED RETENTION BY $188 MILLION PER YEAR. SO, I MEAN, I CAN SAY THAT THE MARKET IS STABILIZING, BUT THERE WERE SOME SUBSTANTIAL EVENTS THAT OCCURRED WITHIN PRISM. WE'RE KIND OF MOVING PAST THEM, BUT, BUT THE RESULT IS THESE CARRIER ACTIONS. SO, REDUCING CAPACITY, THAT'S HOW MUCH CARRIERS ARE WILLING TO ASSUME THE RISK. 
          THEY'RE HOLDING AGGREGATE LIMITS. THEY'RE CAPPING COVERAGE FOR MULTIPLE LOSSES IN A PERIOD. THEY'RE DRAMATICALLY INCREASING RATES, AND THEY'RE RESTRICTING COVERAGES AND UNDERWRITING EXCLUSIONS. THE RESULT OF THAT IS ESTIMATED PRE-MAINTMENT INCREASE FROM THE PRIOR YEAR OF 33%. NOW THAT NUMBER MAY SEEM HIGH. I WANT TO EMPHASIZE THAT THAT'S ESTIMATED. SO, IT'S A HEDGE. IT'S NOT TO GIVE FINANCE COMMITTEE MEMBERS STICKER SHOCK. IT'S TO SAY WE'RE GIVEN A LOW END, A MIDDLE, AND A HIGH. AND SO, WE ALWAYS HEDGE THE HIGH. 
          BUT LOOKING AHEAD, IT TENDS TO DROP DOWN TO A LOWER NUMBER. WE DON'T GET THE FINAL NUMBER UNTIL END JUNE, EARLY JULY. SO, THIS WILL BE REVISED. 
          TO WHAT EXTENT IS OUR, YOU SAID AT THE BEGINNING THAT WE'VE HAD RELATIVELY LOW, A LOW LEVEL OF CLAIMS COMPARED, I GUESS, TO OTHERS IN CALIFORNIA. AND SO, I'M JUST WONDERING TO WHAT EXTENT THAT HELPS US. 
          IT SHOULD HELP US WITH OUR RATE. DO YOU HAVE A SENSE? EVERYBODY'S GIVEN AN EXPERIENCE RATING. SO BEING A PARTICIPANT IN PRISM, YOU GET SOME VALUE ADDS FROM THAT. YOU CAN GET, YOU KNOW, SUPPORT, GUIDANCE, ASSISTANCE. SO, IF A SPECIFIC MEMBER IS HAVING HIGH INCIDENTS, THEN THEY CAN WORK TOWARDS SUPPORTING THEM, OFFERING GUIDANCE, GIVING THEIR INTERNAL KIND OF SUPPORT STAFF TO WORK WITH THEM TO KIND OF MITIGATE THE RISK. SO THAT'S AN OVERALL BENEFIT. BUT FOR EXAMPLE, THE LA WILDFIRES, THAT HAPPENED IN A DIFFERENT PART OF THE STATE, BUT IT'S STILL WITHIN THAT BIGGER POND THAT WE'RE IN. SO, WHAT HAPPENS OVER TIME IS IT'S AGGREGATE FOR EVERYBODY, BUT IF THE TREND CONTINUES, THE AMOUNTS WILL GET LOWER. 
          AND ALSO, JUST TO ADD, BECAUSE WE HAVE LOW EXPERIENCE IN TERMS OF WHAT OUR LOSSES ARE, IT DOES REFLECT IN TERMS OF WHAT OUR INCREASES ARE, PROJECTED INCREASES, COMPARED TO OTHER AGENCIES THAT MIGHT HAVE A HIGHER CLAIMS COST BECAUSE OF WHAT THEY'RE EXPERIENCING IN TERMS OF SETTLEMENTS AND ALL THOSE THINGS THAT THEY ARE HAVING TO TAP INTO PRISM. SO, WE DO SEE IT. IT JUST DOESN'T LOOK THAT WAY BECAUSE IT'S SO HIGH. BUT IN COMPARISON TO OTHER PUBLIC AGENCIES, WE ARE SEEING A LOT LOWER. 
          OKAY, THANK YOU. SO, WE DO A BETTER JOB IN PREVENTION, SO WE GET A BETTER RATE. IS THAT STATEWIDE OR WITHIN PRISM? IT'S WITHIN PRISM. I DON'T KNOW ABOUT OTHER MARKETS, BUT OTHER RISK-SHARING POOLS TEND TO HAVE THE SAME FORMULA OR METHODOLOGY IN TERMS OF IF YOU HAVE A LOT OF CLAIMS HISTORY OR EXPERIENCE WHERE IT'S IMPACTING. YOUR NEED TO TAP INTO THE POOL AND THOSE FUNDS, THEN YOU WILL SEE THAT OVER TIME IN TERMS OF INCREASES UNTIL IT LEVELS OFF AND THEN YOU KIND OF ARE BACK IN THE POOL. AND FOR PRISM SPECIFICALLY, I KNOW THAT IS HOW THEY HANDLE IT WHEN THEY'RE COMING UP WITH THE ANALYSIS FOR WHAT THE COST ALLOCATION IS FOR EACH MEMBER AHEAD OF THE PREMIUM SEASON. THIS 
          [01:20:08]
REALLY SPURS A LOT OF QUESTIONS IN MY MIND HERE, THIS CHART, SO LET'S BUCKLE UP HERE AND TAKE A LOOK. SO GENERAL LIABILITY, 33.5% INCREASE. IS THAT BECAUSE WE'RE LOOKING FOR MORE COVERAGE OR THAT'S JUST SAME THING AND SOMETHING, YOU KNOW, SAME THING, BUT THEY'RE RAISING OUR RATES THAT MUCH? IT'S BASED ON THE MARKET AND THE MARKETPLACE. 
          THERE'S A LOT OF COMPONENTS TO IT. BUT IT IS KIND OF THE CONDITIONS THAT I OUTLINED BEFORE, VERDICT OUTCOMES, THE OVERALL REPLACEMENT COST OF THINGS, INFLATIONARY ADJUSTMENTS. SO THOSE ARE ALL FACTORED INTO THAT FINAL NUMBER. SO, IT'S MARKET-DRIVEN, TOTALLY MARKET-DRIVEN. MARKET DRIVEN PRIMARILY BUT ALSO I THINK TO DIRECTOR WAESPI'S POINT WE DO A LOT OF PREVENTION AND PREVENTATIVE WE GOT LOTS OF PROJECT VEGETATION MANAGEMENT EFFORTS HAVE REALLY HELPED US CONTROL OUR LOSSES AND SO THAT 33% ALTHOUGH IT LOOKS HIGH WE ARE BASING THAT OFF OF THE HIGH-END ESTIMATE THEY GIVE US A VERY BROAD RANGE OF LIKE THIS IS THE LOWEST YOUR PREMIUM MIGHT BE FOR GENERAL LIABILITY AND THIS IS THE HIGH POINT OF WHAT IT COSTS USUALLY BY THE TIME WE GET OUR ACTUAL INVOICE AT THE END OF JUNE, EARLY JULY. IT'S CLOSER TO THE LOW END, BUT WE WANT TO COME TO FINANCE COMMITTEE AND THE FULL BOARD FOR ENOUGH AUTHORITY TO HAVE WHAT WE NEED TO MAKE SURE THAT OUR PREMIUMS STAY PAID. BUT IN ACTUALITY, WE'RE NOT USING THAT FULL AUTHORITY THAT WE'RE COMING TO YOU TODAY TO RECOMMEND TO THE FULL BOARD TO EXERCISE. SO, I HOPE THAT THAT FRAMES IT A LITTLE BIT BETTER IN TERMS OF WHAT OUR ACTUALS ARE IF YOU COULD SEE HOW THEY COME IN. WE ALSO HAVE TO DO A LITTLE BIT OF SOME BACKWARDS MATH BECAUSE WE AREN'T A TRADITIONAL FISCAL YEAR RUNNING FROM JULY TO JUNE. WE'RE CALENDAR, SO WE'RE HAVING TO KIND OF CUT LAST YEAR'S PREMIUM IN HALF AND THIS YEAR'S PREMIUM IN HALF AND PUT IT TOGETHER TO COME UP WITH THE ACTUAL. 
          AND THEIR ESTIMATES ARE REALLY BASED ON TRADITIONAL FISCAL, SO THEY'RE NOT QUITE PROPERLY ALIGNED, WHICH ALSO KIND OF IMPACTS WHAT YOU SEE HERE IN TERMS OF THE CHANGE PERCENT AND THE AMOUNT. HOW MANY MEMBERS ARE IN PRISM? OH, PRISM, I THINK IT'S ALMOST ALL COUNTIES EXCEPT FOR TWO. LOTS OF SPECIAL DISTRICTS, SCHOOL DISTRICTS, CITIES. I WANT TO SAY OVER 100. WE HAVE LOOKED AT OTHER RISK SHARING POOLS. 
          YOU MIGHT BE FAMILIAR WITH CAPRI DIRECTOR OSBY. AND CAPRI IS THE CALIFORNIA ASSOCIATION OF PARKS AND REC INDEMNITY. 
          THEY ARE A REALLY GREAT RISK SHARING POOL FOR LOTS OF CITIES AND OTHER SMALLER PARK DISTRICTS, BUT WE'RE A LITTLE BIT OF AN ANOMALY BECAUSE WE'RE SO LARGE. 
          WE ARE COMPARABLE TO THE SIZE OF A COUNTY. I MEAN, WE SPAN ACROSS TWO. SO, IF WE WERE TO JOIN A RISK-SHARING POOL LIKE CAPRI, WE'RE A MUCH LARGER FISH IN A SMALLER POND, WHICH MEANS THAT WE WOULD JUST REVERSE THE IMPACTS BY BEING THE ONE TO SUBSIDIZE THE LOSSES FOR EVERYONE ELSE. AT LEAST THROUGH PRISM, WE HAVE ENOUGH BACKING. 
          FROM THE POOL AT LARGE TO WITHSTAND A CATASTROPHIC LOSS, WHICH WE NEVER WANT TO HAVE, BUT WE LIKE TO PLAN FOR, KNOWING ALL OF OUR OPEN SPACE AND LAND AND THE LOSSES AND LIABILITIES THAT WE MIGHT HAVE. 
          I GUESS THAT'S WORKERS' COMP SELF-INSURANCE ASSESSMENT? THAT'S A GIGANTIC. THAT IS. 
          AND SO WHEN YOU SEE THE ESTIMATE AT $375,000 THERE WAS A POINT IN TIME WHERE, WHAT THAT IS WE ARE SELF-INSURED AND WE HAVE TO GO THROUGH A SELF-CERTIFICATION EVERY MONTH WITH THE OFFICE OF SELF-INSURED PLANS BY THE STATE AND THEY BASE THAT AMOUNT THAT GETS INVOICED TO US TO BE ABLE TO HOLD OUR SELF-INSURED DESIGNATION ON HOW MUCH WE MIGHT USE AS RESOURCES FOR THE DIRECT THE DEPARTMENT OF INDUSTRIAL RELATIONS, CAL OSHA RESOURCES, ALL OF THOSE THINGS, IT KIND OF BUILDS OUR LOSSES AND LOOK AT HOW MUCH WE MIGHT NEED TO SPEND OR USE THEIR RESOURCES. 
          AND SO, WE'VE KEPT THAT NUMBER FLAT. 
          LAST YEAR'S INVOICE WAS LESS THAN $40,000. SO, WE SAW A HUGE JUMP FROM WHAT USED TO BE ALMOST $200,000 DOWN TO $40,000. AND BECAUSE IT'S SO UNPREDICTABLE, WE DIDN'T WANT TO REDUCE THAT BASE BUDGET BECAUSE WE DON'T KNOW IF THAT'S GOING TO BE ANOTHER WILD SWING GOING INTO DECEMBER IS WHEN WE GET INVOICED. WE WANTED TO MAKE SURE WE HAD ENOUGH AUTHORITY FROM YOU ALL IN CASE THAT NUMBER JUMPS UP AGAIN TO THE HUNDREDS. OKAY, THAT'S A CLASSIC EXAMPLE OF YOU NEED TO GET BEHIND THE NUMBERS AND WAS ALWAYS TAUGHT THAT IN BUDGETING AND GET BEHIND THE NUMBERS. YEP. 
          IT WAS AN ABERRATION. YES. 
          $39,000 IS NOT SOMETHING YOU CAN HANG YOUR HAT ON. NO. IT WAS 
          [01:25:02]
REALLY, WE WERE VERY PLEASED TO SEE SUCH A LOW NUMBER, BUT IN THE PAST, IT WAS LIKE $250,000. VERY, VERY WILD SWING, SO I DON'T KNOW IF IT WAS SOMETHING THAT THE STATE HAD REDONE THEIR METHODOLOGY IN TERMS OF HOW THEY SPREAD THAT COST TO SELF-INSURED AGENCIES, BUT WE ASKED THAT INFORMATION OF THE STATE WHY WE SAW IT SO LOW, AND THEY'RE LIKE, WELL, IT'S BASED OFF OF FACTORS THAT MIGHT IMPACT YOUR LOSSES, YOUR NEED TO RELY ON THE STATE FOR SELF-INSURED WORKERS' COMP COSTS, OR USING OUR DIR RESOURCES, OR USING CAL OSHA RESOURCES. IT'S KIND OF LIKE THEY'RE THEIR INTERNAL SERVICE FUND OF THE STATE THAT THEN GETS PUSHED OUT TO ALL OF THE SELF-INSURED AGENCIES ACROSS THE STATE. THANK YOU. 
          YOU'RE WELCOME. I'LL LEAVE THE SLIDE UP FOR A SECOND IF YOU WANT TO REVIEW ANY OF THE OTHER. I EXPECTED MAYBE SOME QUESTIONS ABOUT CYBER. SAME THING. IT SEEMS LIKE A DRAMATICALLY HIGHER NUMBER. YOU'VE GOT A LANDSCAPE WITH LOTS OF MALWARE EVENTS. YOU'VE GOT, OF COURSE, A LOT OF BAD ACTORS. YOU'VE GOT A LOT OF THE LANDSCAPE'S CHANGED. 
          YOU HAVE A LOT OF REMOTE WORKERS, A LOT MORE ACCESS INTO INDIVIDUAL SYSTEMS. AND THEN YOU HAVE A LOT OF DEMAND THAT'S ACTUALLY HAPPENING BECAUSE OF SOME OF THOSE MORE SERIOUS MALWARE EVENTS THAT HAVE AFFECTED MUNICIPALITIES, SOME PUBLIC UTILITIES, A LOT OF SCHOOL DISTRICTS. AND SO, THERE'S KIND OF A RUSH TO GET THAT COVERAGE, AND THE RESULT IS AN INCREASE BECAUSE THERE HAS BEEN INCREASED DEMAND FOR GOOD REASON. AND THE CYBERSECURITY, IT'S THROUGH WHICH PROGRAM SPECIFICALLY? PRISM. PRISM. ALL OF THIS IS PRISM? OKAY, GOTCHA. 
          AND, YEAH, THE GENERAL LIABILITY. 
          LIKE I SAID, THE MARKET IS STABILIZING, SO I THINK IF I HAD A SLIDE FOR THE INCREASE FOR COMPARATIVE YEAR BEFORE OR YEARS BEFORE, HOPEFULLY WE START TRENDING DOWNWARDS, BUT WE COULD HAVE OTHER EVENTS THAT WE HAVEN'T FORECASTED, AND THE NUMBERS WILL SEEMINGLY ALWAYS CHANGE, AND I DON'T THINK THEY CHANGE JUST FOR CHANGE'S SAKE. YOU KNOW, THERE'S A FOUNDATIONAL BASIS FOR THE CHANGE. LOOKING FORWARD, THE STATE OF THE INSURANCE MARKET, HOW IT USED TO BE, IT WAS BASED ON FREQUENCY OR SEVERITY. NOW IT'S MORE FREQUENCY OF SEVERITY. SO, WE'VE HAD BIGGER CATASTROPHIC EVENTS THAT ARE OCCURRING WITH MORE REGULARITY AND MORE FREQUENCY. 
          AND SO THAT'S A SUBSTANTIAL CHANGE. THERE'S A LOT OF UNFORECASTED EVENTS THAT HAVE OCCURRED 26-27 POLICY PERIOD. 
          THE PLAN MAINTAINS STABILITY, CONTINUE OUR PARTICIPATION IN PRISM AND THE JOINT POWERS AUTHORITY, CONTINUE TO IMPLEMENT LOSS CONTROL STRATEGIES TO REDUCE LOSSES AND EXPOSURES TO PUBLIC AND EMPLOYEE SAFETY, SECURITY OF ASSETS, AND AS YOU SPOKE ABOUT, VEGETATION MANAGEMENT. AND I'VE SEEN ALL THOSE IN PRACTICE, AND IT'S A VERY ROBUST SYSTEM THAT'S IN PLACE. MY RECOMMENDATION TO THE FINANCE COMMITTEE, TO THE BOARD, IS TO REVIEW THE PARK DISTRICT INSURANCE PROGRAM AND RECOMMEND THAT THE FULL BOARD OF DIRECTORS, ONE, RENEW THE GENERAL LIABILITY PROPERTY, AVIATION, EXCESS WORKERS' COMPENSATION, WATERCRAFT, CRIME, AND CYBER LIABILITY POLICIES FOR THE 26-27 POLICY PERIOD, AND SECOND, AUTHORIZE THE SELF-INSURED ASSESSMENT PAYMENT TO THE CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS IN AN AMOUNT NOT TO EXCEED $375,000. THANK YOU FOR THE TIME AND CONSIDERATION. 
          THANK YOU FOR THE REPORT AND WELCOME TO THE DISTRICT. THANK YOU, GLAD TO BE HERE, APPRECIATE IT. GO AHEAD, JOHN. ONE MORE QUESTION. 
          ALL RIGHT, HAYWARD FAULT. YEAH. 
          SOMETIME IN THE NEXT ONE DAY OR 50 YEARS, THERE'S GOING TO BE SOMETHING REALLY BIG. 
          IT'S GOING TO AFFECT THE WHOLE BAY AREA, BUT ESPECIALLY THE EAST BAY, AND WE'RE GOING TO BE LIKE RIGHT ON IT, YOU KNOW. 
          HOW ARE WE COVERED FOR SOMETHING LIKE THAT? AND IS THERE GOING TO BE PENNIES ON THE DOLLAR KIND OF PAYOUT TO ALL THESE AGENCIES, YOU KNOW, BECAUSE IT WILL OVERWHELM THE SYSTEM? I REALLY DON'T KNOW, BUT I'D BE INTERESTED TO KNOW WHAT KIND OF THINKING HAS GONE ON ABOUT 
          [01:30:02]
ANTICIPATING THAT EVENTUALITY. 
          GREAT QUESTION. THE TYPE OF THINGS THAT KEEP RISK MANAGERS UP AT NIGHT. I'M HIGHLY AWARE OF IT, YOU KNOW, BEING, YOU KNOW, FIRST RESPONDER IN OUR EMERGENCY PREPARATION. I THINK STATISTICALLY WITHIN THE NEXT 10 YEARS THE CHANCE IS AS HIGH AS 60% THAT IT WILL OCCUR. I MOVED HERE FROM WASHINGTON STATE. I NEVER FELT THIS MUCH MOVEMENT UNTIL THAT. SO, I'M HYPER AWARE. AS FAR AS COVERAGES, I THINK WHAT THEY DO IS EXPECT THE MITIGATION STRATEGIES TO REDUCE THE IMPACT AND THE DAMAGES, WHETHER THAT'S RETROFITTING BUILDINGS, PLANNING, RESPONSE, THINGS LIKE THAT. BUT I THINK FROM A GENERAL LIABILITY STANDPOINT, THAT IS SOMETHING THAT'S BUILT INTO THE OVERALL COST, THE ANTICIPATION OF AN EVENT OCCURRING. AND THEN AND WHAT THE SEVERITY MIGHT BE. SO, THERE'S ALL KINDS OF FORECASTING AND MODELING, WHAT IT WOULD DO, WHAT THE SEVERITY WOULD BE, WHERE IT WOULD OCCUR, AND DENSITIES OF BUILDINGS AND POPULATIONS. 
          SO, THERE'S A MODEL THAT THEY HAVE, PROBABLY THAT'S KIND OF EXTREME TO ONE END, AND THEN IT'S THE SAME CONCEPT OF THE LOW, THE MIDDLE, AND THE HIGH, AND THEN THEY KIND OF HAVE AN AGGREGATE NUMBER THAT'S BUILT IN. AND THEN SPECIFICALLY FOR EARTHQUAKES, WE DO, DO AN ANALYSIS OF WHERE PROPERTIES ARE LOCATED. AND SO FIRST WE'RE THINKING OF WHAT, WHAT IS INSURABLE REAL PROPERTY AND FIGURING OUT WHERE IT SITS ALONG THE FAULT. AND IT DOESN'T MAKE SENSE TO ADD THAT PROPERTY AND PROCURE ADDITIONAL EARTHQUAKE INSURANCE BECAUSE IT DOESN'T. IT'S ALMOST LIKE HOMEOWNERS' INSURANCE WHERE THERE ARE SOMETIMES VERY CLEAR EXCLUSIONARY COVERAGES DEPENDING ON WHAT TYPE OF NATURAL DISASTER IT IS. AND SO, WE DO HAVE CERTAIN PROPERTIES THAT CARRY EARTHQUAKE INSURANCE, BUT A LOT OF IT, TOO, IS KIND OF THAT RISK ASSESSMENT OF WHAT PROPERTIES ARE WE BUYING? IS IT WORTH IT TO INSURE, OR DO WE LET IT GO? WHAT IS THE CURRENT STATE OF THE PROPERTY? IS IT IN A LOCATION THAT WILL ALSO LEAD TO FLOODING? AND SO, ALL OF THESE THINGS COME INTO PLAY IN TERMS OF, LIKE, DO WE OR DON'T WE ADD THE ADDITIONAL. 
          EARTHQUAKE COVERAGE BUT IT IS PART OF OUR ASSESSMENT JUST LIKE FLOODING. THAT'S INTERESTING, I APPRECIATE THE LEVEL OF DETAIL THAT THAT IS ACTUALLY BEING APPLIED THERE. THAT'S GREAT. 
          THANK YOU. YEAH. 
          YEAH I WOULD JUST SAY I THINK THAT CAME BEFORE OUR BOARD FIVE OR SIX YEARS AGO WHEN WE DECIDED WHICH BUILDINGS WE WOULD DECIDE WE WANTED TO ENSURE THIS ONE OBVIOUS CHEMICAL TOILET OUT BRIONES. IT WAS ANY OTHER, UNLESS YOU'RE IN IT, WELL, THAT'S A VERY GOOD POINT. 
          PROXIMITY. ANY QUESTIONS, ELIZABETH? SO, SO I GOT A COUPLE, WHAT'S OUR SELF-INSURANCE RATE? WE'RE SELF-INSURED AT $250,000 ON CERTAIN THINGS AND $25,000 ON OTHER THINGS. WHAT ARE THE LIMITS? AUTOMOTIVE. GENERAL LIABILITY IS $500,000. 
          AUTOMOTIVE, $25,000. PROPERTY IS $25,000. SO GENERAL LIABILITY IS $500,000. 
          WORKERS COMP IS $350,000 SELF-INSURED RETENTION LIMIT. 
          PROPERTY, WHICH WOULD BE INCLUSIVE OF AUTO AND RAIL PROPERTY, $25,000. DEPENDING ON IF IT'S JUST MOBILE EQUIPMENT, LIKE WE ENSURE SKID STAIRS AND SUCH, BUT NOT RATED FOR HIGHWAY WOULD BE $10,000 SOMETIMES. AVIATION, IT DEPENDS ON WHAT THE COVERAGE IS, BUT DIFFERENT LIMITS FOR DIFFERENT TYPES OF COVERAGE, YEAH. OKAY, THANK YOU. I THINK IT WOULD BE REALLY INTERESTING. I DON'T WANT TO PUT YOU ON THE SPOT, BUT IF WE'RE GOING TO BE THEORETICALLY SPENDING ALMOST $5 MILLION ON INSURANCE ABOVE AND BEYOND, I'D LOVE TO KNOW HOW MUCH WE PAY, HOW MUCH SELF-INSURED MONEY WE'VE SPENT IN THIS SAME YEAR PERIOD TO SEE IF WE CAN ADJUST. AND I GUESS ONE QUESTION, AND I KNOW NOTHING ABOUT PRISONS. I'M SURE THEY'RE GREAT, AND I HONESTLY KNOW NOTHING ABOUT CAPRI EITHER OTHER THAN IT'S THE ORGANIZATION I'M A MEMBER OF THE BOARD OF. 
          BUT WE'RE SEPARATE AGENCIES. 
          WHAT IS OUR ARRANGEMENT WITH PRISM? DO WE RENEGOTIATE? DO WE HAVE A FIVE-YEAR CONTRACT WITH THEM, A TWO-YEAR, ONE-YEAR? IS THERE EVER AN RFP PROCESS? DO WE HAVE THE ABILITY TO LOOK AT THIS AND SAY, WOW, WE WANT 
          [01:35:02]
TO SHOP THIS AROUND? I MEAN, I THINK EVEN YOUR BEST FRIENDS, IF THEY SAID, WE'RE GOING TO CHARGE YOU 33% MORE, PROBABLY LOOK THEM IN THE EYE AND SAY, YOU'RE A GOOD FRIEND. I MIGHT WANT TO LOOK SOMEWHERE ELSE. DO WE HAVE THAT ABILITY? AND AGAIN, DO WE ALSO HAVE THE ABILITY TO USE THIS AS A CAFETERIA PLAN? I MEAN, ARE THEY, IS CAPRI REALLY HIGH IN AIRCRAFT? I WOULD ASSUME THERE'S PROBABLY NOT A WHOLE LOT OF AGENCIES THAT ARE GOING TO ENSURE AIRCRAFT IN OUR POOL AND PRISM, OR IS GENERAL LIABILITY HIGH BECAUSE WE'RE A PARK? OR DO WE GET A BETTER DEAL BECAUSE WE'VE GOT TRAIL IMMUNITY? CAN WE SHOP EACH ONE OF THESE? YEAH, THEY, YOU, IT DOESN'T NECESSARILY NEED TO BE AN ENTIRE PACKAGE. WE'VE CONSIDERED SHOPPING AROUND TO SEE IF WE WANT TO JUST KIND OF BIFURCATE GENERAL LIABILITY AND SEE IF WE CAN GET A BETTER RATE FOR THAT SOMEWHERE ELSE, DEPENDING ON WHAT'S OUT THERE IN THE MARKET. THE RELATIONSHIP WITH CAPRI AND PRISM IS THAT CAPRI'S EXCESS INSURANCE IS COVERED BY PRISM. SO, IT'S KIND OF THEY INSURE UP TO A CERTAIN AMOUNT WITHIN THE POOL, AND THEN ONCE THEY REACH THEIR CEILING WITHIN CAPRI, THEY'RE ALSO LEANING ON PRISM FOR THE EXCESS LAYERS. SO, WE'VE HAD DISCUSSIONS WITH OUR BROKER ALLIANCE TO SEE, YOU KNOW, WHAT IS THE BENEFIT OF STAYING A DIRECT MEMBER IN PRISM OR BEING A SECONDARY MEMBER THROUGH CAPRI. AND WE JUST HAVE MUCH BETTER ACCESS. 
          WE HAVE DIRECT ACCESS TO TRAINING MATERIAL, BEING ABLE TO INTERFACE WITH OTHER PUBLIC AGENCIES WHO ARE DEALING WITH SIMILAR TYPES OF RISK SITUATIONS OR PROCEDURES OR POLICIES THAT THEY NEED TO CONSIDER TO REDUCE OR CONTROL THE LOSSES AND SO WE WOULD LOSE SOME OF THAT AS NOT BEING DIRECT MEMBERS AND SO IF WE WERE ALWAYS KIND OF LOOKING TO SEE WHAT IS OUT THERE TO, TO KIND OF CONTROL THE PREMIUMS THE GOOD THING TOO IS WE JUST DID OUR ACTUARIAL STUDY VERY EXCITING NUMBERS THING WHERE WE'RE LOOKING AT. IF THERE WAS A CATASTROPHIC LOSS, HOW MUCH CAN WE WITHSTAND AND RECOVER THAT LOSS BASED ON OUR SELF-INSURED RETENTION? AND IF WE HAD A CATASTROPHIC LOSS, WE'RE WELL OVER THE 90% CONFIDENCE RATE, WHICH ON AVERAGE, MOST AGENCIES ARE PROBABLY 75%, MEANING THEY WOULD NEED SUPPORT FROM THEIR EXCESS INSURANCE CARRIER OR SOMEWHERE ELSE TO TRY TO FIND THOSE FUNDS. 
          WE'RE VERY HEALTHY AS AN ORGANIZATION IN TERMS OF OUR ABILITY TO WITHSTAND A CATASTROPHIC LOSS. AND PART OF THAT IS BECAUSE WE'RE RESPONSIBLY MANAGING OUR SELF-INSURED FUNDS AND REALLY DECIDING, OKAY, WHAT CAN WE ABSORB IN TERMS OF WHATEVER LOSS WE'RE EXPERIENCING VERSUS WHEN WE NEED TO TAP INTO THE POOL. 
          SO, IT SEEMS HIGHER, AND IT IS A LOT FOR SECURING THOSE COVERAGES, BUT IN THE MARKET THAT IT'S BEEN SINCE COVID AND ONWARD, IT'S JUST BEEN THIS WILD SWING OF THE MARKET'S JUST UNPREDICTABLE FOR INSURANCE. 
          WE'VE SEEN PEOPLE LOSE HOMEOWNER'S INSURANCE IN MARKETS THAT ARE FAIRLY STABLE, LIKE STATE FARM AND OTHER AGENCIES THAT OFFER HOMEOWNERS INSURANCE AND PEOPLE BEING DROPPED FROM COVERAGES, SO IT SEEMED PRUDENT TO STAY WITHIN A VERY, VERY STABLE RISK-SHARING POOL IN PREPARATION FOR ANY LOSS LIKE THAT. I'M GLAD WE'RE INVESTIGATING AND LOOKING AT ALL THE ALTERNATIVES WE HAVE BECAUSE I THINK THAT'S WHERE THESE PRICES ARE GETTING SO MUCH AND WE REALLY NEED ON THE GROUND. AND I CONGRATULATE YOU AND YOUR DEPARTMENT FOR ALL THE PREVENTATIVE WORK WE TALK ABOUT AND ALL THE TRAININGS. 
          IT SEEMS THERE'S A MILLION TRAININGS. IT'S GREAT. AND I'M SURE IT PAYS OFF IN DIVIDENDS. SOME OF THESE TRAININGS I'VE HEARD ABOUT, CHAINSAW TRAINING, WHICH, BOY, THAT'S RELATIVELY NEW. AND THE THINGS WE'RE DOING IN THE DISTRICT, I APPRECIATE IT. AND I'M WONDERING, DO YOU GUYS STILL DO AWARDS FOR, I KNOW IN THE OLD DAYS, IF YOU DROVE A YEAR WITHOUT AN ACCIDENT OR FIVE YEARS WITHOUT AN ACCIDENT OR 50,000 MILES OR WHATEVER, HOWEVER YOU, WHATEVER THE METRIC YOU USE, GIVE AN AWARD, A LUNCHEON OR SOMETHING TO PEOPLE. WE DON'T. WE DO NOT. 
          I HAVE NOT HEARD THAT YET, BUT MAYBE WE'LL REVISIT THAT. 
          THAT MIGHT BE A GREAT INCENTIVE. IT WAS A SOURCE OF PRIDE FOR A NUMBER OF PEOPLE THAT DID THAT IN THE PARK DISTRICT. AND JUST, YOU KNOW, HAVING A CREW WORK FOR A YEAR WITHOUT AN INJURY OR IN ENTIRE STAFF OR WHATEVER I'M NOT SURE WHAT, HOW YOU WOULD USE THAT BUT I THINK IT IS A INCENTIVE AND PEOPLE LIKE THAT AND IT'S A GOOD TEAM-BUILDING EFFORT IN MY OPINION. THANK YOU IT'S A GREAT IDEA. ANYWAY, THANK YOU MANY MEMBERS OF THE PUBLIC HAVE COMMENTS. 
          WE DO HAVE ONE PUBLIC COMMENT MEADOW DARCY. GOOD AFTERNOON 
          [01:40:03]
FINANCE COMMITTEE AND, AND, AND EVERYONE ELSE THAT'S HERE MY NAME IS MEADOW DARCY AND I AM THE CHIEF STEWARD OF AFSCME LOCAL 2428. I WANTED TO GIVE A LITTLE FEEDBACK ON THIS ITEM. DENNIS MAY REMEMBER WHEN ANNA FONG WAS HERE SHE WOULD DO AN ANNUAL SURVEY ON OUR WORKERS' COMP PROVIDER FOR THE EMPLOYEES TO FILL OUT AND THEN WOULD PRESENT THAT INFORMATION TO THE BOARD EVERY YEAR. AND I THOUGHT THAT WAS A REALLY GOOD THING TO DO BECAUSE WE HAVE BEEN HEARING QUITE A FEW COMPLAINTS ABOUT OUR WORKERS' COMP PROVIDER AND I THINK THAT WOULD SORT OF MAKE BETTER ACCOUNTABILITY FOR OUR PROVIDER AND MAKE SURE THAT THE MONEY THAT WE ARE PAYING IS RESULTING IN SERVICE THAT WE WOULD LIKE TO HAVE. ALSO, WE HAVE ASKED FOR INFORMATION OR MORE ANALYTICAL INFORMATION AND DATA ON INJURIES IN ORDER TO PUT TOGETHER PREVENTION STRATEGIES. 
          WE DO HAVE OUR CENTRAL SAFETY COMMITTEE AND WE DO HAVE AN ACCIDENT REVIEW BOARD, BUT WE DON'T HAVE ANY COMPREHENSIVE DATA MANAGEMENT. WE'RE NOT RECEIVING YOU KNOW, STATISTICS OF WHETHER INJURIES HAVE INCREASED OR DECREASED OR WHETHER, YOU KNOW, BEFORE WE PROVIDED TRAINING, WE HAD THIS MANY INJURIES, AND THEN AFTER WE PROVIDED TRAINING, WE HAD THIS MANY. SO, WE'RE LOOKING FOR A LITTLE BIT MORE COMPREHENSIVE RESPONSE TO THAT. AND THEN CYBERSECURITY, I WANTED TO REMIND THE BOARD ABOUT THE IT STRATEGIC PLAN THAT, I GUESS, IS STILL IN DRAFT FORM. WE DID DO AN RFI FOR THAT, WAITED PROBABLY ABOUT A YEAR, ALMOST TWO YEARS TO RECEIVE IT. AND THEN WE WERE ONLY GIVEN THE DRAFT, WHICH WAS CREATED IN 2023, BUT THERE WAS NO, NONE OF THE INFORMATION WAS IMPLEMENTED. 
          AND SO, WE'D LIKE TO MAKE SURE THAT WE DO HAVE AN IT STRATEGIC PLAN SO THAT SOME OF THESE ISSUES CAN BE DEALT WITH. WE ALSO HAVE A CYBERSECURITY ADMINISTRATOR POSITION THAT HAS BEEN VACANT FOR 856 DAYS. 
          THERE HAVE BEEN THREE FAILED RECRUITMENTS, INCLUDING ONE JUST RECENTLY WHERE. 
          MANAGEMENT DECIDED THAT NONE OF THE APPLICANTS QUALIFIED. 
          WE BELIEVE THIS IS A SIGNIFICANT ISSUE THAT NEEDS ADDRESSING AND HAVING THIS POSITION VACANT HAS BEEN A CONCERN OF OURS AND SHOULD PROBABLY BE FOR THE DISTRICT. WHEN WE HAVE ASKED BEFORE ABOUT WHAT THE ISSUES ARE, WE HAVE HEARD REMOTE WORK AND PAY HAVE BEEN THE ISSUES AND WE HAVE REMAINED OPEN TO ADDRESSING ANY OF THOSE ISSUES, BUT WE HAVE NOT RECEIVED ANY PROPOSALS GOING FORWARD. SO AGAIN, WE'RE ON THE THIRD FAILED RECRUITMENT, WE STILL DON'T HAVE A CYBERSECURITY ADMINISTRATOR. THAT PUTS A LOT OF PRESSURE ON OUR CURRENT MEMBERS THAT ARE WORKING IN IT TO, YOU KNOW, FEEL AS THOUGH THEY HAVE TO MAKE SURE THINGS ARE SAFE WHEN THAT'S NOT NECESSARILY WITHIN THEIR JOB DESCRIPTION. 
          SO, I'D LIKE TO SEE MAYBE SOME MOVEMENT ON THAT AND GET MORE INFORMATION. 
          BUT THANK YOU VERY MUCH. AND WELCOME. THANK YOU. THERE IS NO MORE PUBLIC COMMENT. ALL RIGHT. 
          WE HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD OF APPROVAL TO GO INTO A CONTRACT FOR $6.832 MILLION TO PAY FOR INSURANCE FOR NEXT YEAR. 
          WELL PUT, SO MOVED. MOTION AND A SECOND. ANY FURTHER DISCUSSION? I GUESS AS A DISCUSSION ITEM FOR ME WOULD THIS BE A CONSENT CALENDAR ITEM BECAUSE I THINK THIS WOULD BE YOU KNOW THIS THIS IS HAPPENING ALL OVER. 
          IT'S A BIG DEAL. YOU KNOW, I MENTIONED, I SAID, OH, IT'S GOING TO BE $5 MILLION OR $4.9 MILLION. BUT NO, I WAS LOOKING AT LAST YEAR, IT'S GOING TO BE $6.8. WILL THIS BE A CONSENT CALENDAR ITEM OR ON THE REGULAR BOARD CALENDAR? I THINK CURRENTLY IT MIGHT BE CONSENT, BUT IF YOU PREFER, WE CAN MOVE IT TO. 
          NORMALLY, IT WOULD BE, AND I DON'T KNOW THAT IT WOULD RISE AS THE, I MEAN, I THINK, WELL, I HOPE MY FELLOW BOARD MEMBERS LOOK AT THIS AND GO, HOLY SMOKE, WE NEED TO DO SOMETHING. ANYWAY, THANK YOU. WE'LL FIGURE IT OUT LATER, I GUESS. IF THERE'S NO FURTHER DISCUSSION, ALL IN FAVOR OF THIS MOTION, SIGNIFY BY SAYING AYE. AYE. 
          OPPOSED? HEARING NONE. MOTION PASSES UNANIMOUSLY. THANK YOU VERY, VERY MUCH FOR YOUR REPORT. MATT, WELCOME. 
          THANK YOU. AND WE'LL MOVE NOW TO ANNOUNCEMENTS, IF I'M NOT MISTAKEN. OR INFORMATIONAL ITEMS, ANYTHING INFORMATIONAL FOR ANYBODY? ANY ANNOUNCEMENTS? HEARING NONE, WE ARE ADJOURNED. THANK YOU ALL FOR YOUR GREAT REPORTS. 
          WE'RE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.