[Roll Call]
          [00:00:06]
          GOOD MORNING AND WELCOME TO THIS REGULAR MEETING OF THE EAST BAY REGIONAL PARK DISTRICT FINANCE COMMITTEE BEGINNING AT 10:31. WILL MADAM CLERK PLEASE CALL THE ROLL? YES, THANK YOU. DIRECTOR WOSPI IS ABSENT. 
          DIRECTOR MERCURIAL. 
          HERE. 
          DIRECTOR ECHOLS.
HERE. 
          THANK YOU. 
          ALL RIGHT, THAT WAS QUICK AND EASY. 
          THE NEXT ITEM IS APPROVAL OF MINUTES. WE DON'T HAVE ANY. SO WE'LL SKIP ON TO PUBLIC COMMENTS FOR ITEMS NOT
ON THE AGENDA. 
          DO WE HAVE ANY OF THOSE TODAY? WE HAVE NO PUBLIC COMMENT. NO PUBLIC COMMENT. OKAY, SO THEN WE 
          [Action Items]
MOVE ON TO ITEM FOUR, WHICH IS ACTION ITEMS. AND THIS ITEM IS RECOMMENDATION TO THE BOARD OF DIRECTORS TO ACCEPT THE SECOND QUARTER 2026 GENERAL FUNDS AND OTHER GOVERNMENTAL FUNDS FINANCIAL REPORTS. GOOD MORNING, DIRECTOR MERCURIO. DIRECTOR ECHOLS. 
          I'M KAREN SICKETT, ASSISTANT FINANCE OFFICER IN FINANCE AND MANAGEMENT SERVICES. AND TODAY WE WILL BE PRESENTING THE SECOND QUARTER 2026 GENERAL AND OTHER GOVERNMENTAL FUNDS FINANCIAL REPORTS. AND I'D LIKE TO INTRODUCE CARLSON TAI, OUR FINANCIAL ANALYST WHO PREPARED THE ANALYSIS FOR THE SECOND QUARTER. 
          AND CARLSON WILL WALK US THROUGH THE KEY HIGHLIGHTS FOR THIS QUARTER AND I'LL ALSO BE HERE TO ANSWER ANY QUESTIONS IF NEEDED. SO AT THE END OF THIS PRESENTATION, WE WILL BE ASKING THE FINANCE COMMITTEE TO MOVE THIS ITEM FORWARD TO THE FULL BOARD FOR ACCEPTANCE IN THE NEXT BOARD MEETING. 
          AND WITH THAT, I'LL TURN IT OVER TO KARL. 
          ALL RIGHT. JUST WANT TO SAY THANKS TO KAREN AND TIFFANY FOR GIVING ME THE OPPORTUNITY TO PRESENT TO YOU ALL. SO LET'S GET STARTED WITH THESE NUMBERS. 
          SO TODAY I'LL BE PRESENTING THE SECOND QUARTER 2026 GENERAL FUND AND GOVERNMENTAL FUND FINANCIAL REPORTS. THIS REPORT COVERS THE PARK DISTRICT'S FINANCIAL ACTIVITY THROUGH JUNE 30, 2026. I'LL BE STARTING WITH THE GENERAL FUND AND THEN MOVING OVER TO SPENDING BY DIVISION, THE BOARD DIRECTORS OPERATING PROCEDURES, EXPENDITURES AND LASTLY THE OTHER GOVERNMENTAL FUNDS. 
          BEGINNING WITH THE GENERAL FUND SUMMARY. REVENUES THROUGH Q2 ARE APPROXIMATELY 110.2 MILLION OR 47.8% OF THE ANNUAL BUDGET. 
          EXPENDITURES ARE APPROXIMATELY 110.9 MILLION OR 45.9 MILLION PERCENT OF BUDGET. 
          THIS RESULTS IS A NET USE OF FUND BALANCE APPROXIMATELY TO 687,000 THROUGH THE SECOND QUARTER COMPARED TO THE FULL YEAR BUDGETED USE OF 11.1 MILLION. 
          OVERALL REVENUES AND EXPENDITURES ARE TRACKING REASONABLY CLOSE TO THE MID YEAR EXPECTATIONS. 
          LOOKING MORE CLOSELY AT THE GENERAL FUND ATTACHMENT A IN PART OF YOUR PACKET PROVIDES DETAILED REVENUE AND EXPENDITURE INFORMATION INCLUDING EXPLANATIONS FOR YOUR LARGER VARIANCES. 
          PROPERTY TAXES ARE APPROXIMATELY 96 MILLION OR 44.8% OF BUDGET. THIS IS CONSISTENT WITH THE DISTRICT'S NORMAL PROPERTY TAX COLLECTION CYCLE WITH THE MAJOR INSTALLMENTS PRIMARILY RECEIVED IN APRIL AND DECEMBER. THE CURRENT PERCENTAGE IS ALSO VERY SIMILAR TO Q2 OF LAST YEAR WHICH IS 45.4%. 
          CHARGES FOR SERVICES ARE APPROXIMATELY 4.9 MILLION OR 41.5% OF THE BUDGET AND ARE ALSO CLOSELY TRACKING RELATIVELY CLOSE TO OUR PRIOR YEAR. 
          PROPERTY USAGE IS APPROXIMATELY 864,000 OR 30.9% OF BUDGET. THIS IS BELOW MID YEAR PERCENTAGE PRIMARILY DUE TO TIMING OF GRAZING LEASES. 
          REVENUE EXPECTED IN THE THIRD QUARTER. 
          MISCELLANEOUS REVENUES ARE APPROXIMATELY 1.3 MILLION OR 102.2% OF BUDGET. THE PACKET IDENTIFIES APPROXIMATELY 1.1 MILLION OF THIS CATEGORY AS INTERAGENCY AGREEMENTS AND GRANTS AS DISCUSSED IN THE FIRST QUARTER REPORT. 
          THIS CATEGORY CAN ALSO BE AFFECTED BY REVENUE RECOGNITION TIMING INCLUDING THE DISTRICT'S 60 DAY AVAILABILITY PERIOD. 
          INVESTMENT EARNINGS ARE APPROXIMATELY 7.1 MILLION AS THE PRIOR REPORTS. 
          [00:05:03]
INVESTMENT EARNINGS ARE NOT BUDGETED SO THOSE REVENUES ARE SHOWN SEPARATELY. MOVING TO EXPENDITURES, SALARIES AND BENEFITS ARE
APPROXIMATELY 66.8 MILLION OR 43.5% OF BUDGET WHICH IS ALMOST IDENTICAL TO LAST YEAR'S Q2 PACING OF 43.4%. SUPPLIES ARE AT 29.2% AND SERVICES ARE AT 31.1% WHICH APPEARS TO BE LOW BUT WHEN LOOKING AT ACTUAL EXPENDITURES. 
          HOWEVER, WHEN WE INCLUDE COMMITMENTS AND ENCUMBRANCES, SUPPLIES ARE APPROXIMATELY 54% OF BUDGET AND SERVICES ARE AT APPROXIMATELY 50%. 8%. 
          CAPITAL OUTLAY IS ALSO LOW ON THE ACTUAL BASIS AT 23% BUT INCREASES TO APPROXIMATELY 83% WHEN THE 214,000 ENCUMBRANCES ARE INCLUDED. INTERFUND ARE RIGHT AT 50% OF BUDGET. MOVING TO THE EXPENDITURES BY DIVISION ATTACHMENT A PROVIDES ADDITIONAL DETAIL ON THE LARGER VARIANCES. 
          EXECUTIVE AND LEGISLATIVE IS AT 35.9% OF BUDGET, DISTRICT WIDE SUPPORT AT 40.8%, OPERATIONS AT 44.4% AND FACILITIES AND INFRASTRUCTURE IS AT 38.3%. 
          SOME OF THE LOWER PERCENTAGES ARE RELATED TO OUTSTANDING COMMITMENTS. 
          WHEN ENCUMBRANCES ARE INCLUDED, FOR EXAMPLE, HR INCREASES TO APPROXIMATELY 44% AND MAINTENANCE AND SKILL TRADES ARE APPROXIMATELY 46%. 
          LEGAL EXPENDITURES ARE LOWER DUE TO TIMING AND VOLUME OF LEGAL MATTERS, WHILE DESIGN AND CONSTRUCTION ARE LOWER PRIMARILY DUE TO SERVICES EXPENDITURES CONTINUING WITH THE REMAINING DIVISIONS, ACQUISITIONS, STEWARDSHIP AND DEVELOPMENT IS AT APPROXIMATELY 7.7 MILLION OR 39.6% OF BUDGET. 
          WHEN ENCUMBRANCES ARE INCLUDED, EXPENDITURES ARE APPROXIMATELY 48% OF BUDGET. PUBLIC SAFETY IS APPROXIMATELY AT 21 MILLION OR 42.9% OF BUDGET. 
          MOVING OVER TO THE CHART THIS CHART PROVIDES A VISUAL COMPARISON OF EACH DIVISION'S ANNUAL BUDGET AGAINST EXPENDITURES THROUGH THE SECOND QUARTER. 
          AS YOU CAN SEE, ALL THE MAJOR DIVISIONS REMAIN BELOW 50% OF THEIR ANNUAL BUDGETS ON AN ACTUAL EXPENDITURE BASIS. 
          OPERATIONS AND PUBLIC SAFETY CONTINUE TO BE THE LARGEST RESOURCE AREAS, WHICH IS CONSISTENT WITH THE DISTRICT'S CORE SERVICE DELIVERY. 
          OVERALL, DIVISION LEVEL SPENDING REMAINS WITHIN THE EXPECTED RANGE OF THIS FOR THIS POINT OF YEAR, PARTICULARLY AFTER TAKING OUTSTANDING ENCUMBRANCES INTO CONSIDERATION. NEXT IS THE BOARD OF DIRECTORS OPERATING BUDGET. ATTACHMENT C IN YOUR PACKET PROVIDES THE DETAILED BOARD OF DIRECTORS OPERATING EXPENDITURES THROUGH JUNE 30. 
          TOTAL BOARD OPERATING EXPENDITURES ARE APPROXIMATELY 129,000 OR 28.1%. BUDGET SALARIES AND BENEFITS APPROXIMATELY 98,000 OR 58.6%. SUPPLIES ARE APPROXIMATELY $700 OR 0.6%. 
          SERVICES ARE APPROXIMATELY 29,000 OR 16.9%. THE LOWER. 
          OVERALL SPENDING IS MAINLY RELATED TO THE BUDGET THAT HAS NOT YET BEEN SPENT. 
          USED FOR ITEMS LIKE COMPUTER EQUIPMENT, CONTINGENCY, TRAVEL CONTRIBUTIONS AND SPONSORSHIPS FOR THE ITEM. 
          FOR CONTRIBUTIONS AND SPONSORSHIPS, APPROXIMATELY 12,000 OF THE 50,000 ANNUAL ALLOCATION HAD BEEN SPENT THROUGH JUNE 30TH. LASTLY, I'LL COVER THE GOVERNMENTAL FUNDS. 
          ATTACHMENT B IN YOUR PACKET PROVIDES THE DETAILED SUMMARIES OF THESE FUNDS. 
          SPECIAL REVENUE FUNDS INCLUDE MEASURE FF, LLD FUNDS, CFDS, ZONE OF BENEFITS AND MEASURE WW. LOCAL GRANTS. 
          PROJECT FUNDS ARE PRIMARILY USED FOR LAND ACQUISITION AND DEVELOPMENT PROJECTS, SO ACTIVITY CAN VARY DEPENDING ON PROJECT TIMING. DEBT SERVICES FUNDS INCLUDE MEASURE WW AND THE 2012 AND 2024 PROMISSORY NOTES. 
          REVENUES ARE BELOW BUDGET, PRIMARILY DUE TO A REDUCTION TO THE 2022 BOND SERIES TAX LEVY, WHILE EXPENDITURES REFLECT SCHEDULED DEBT SERVICE PAYMENTS. 
          INTERNAL SERVICE FUNDS INCLUDE WORKER COMPENSATION,
GENERAL LIABILITY, EMPLOYEE BENEFITS, MER AND MAJOR EQUIPMENTS. 
          AND THAT CONCLUDES THE SECOND QUARTER 2026 GENERAL FUND AND 
          [00:10:02]
OTHER GOVERNMENTAL FUNDS. 
          FINANCIAL REPORTS. 
          STAFF IS REQUESTING THE FINANCE COMMITTEE REVIEW THE REPORTS AND DIRECT STAFF TO SUBMIT THEM TO THE BOARD OF DIRECTORS FOR ACCEPTANCE. I'LL BE HAPPY TO ANSWER ANY QUESTIONS. ANY QUESTIONS? SURE, I HAVE A QUESTION. 
          WELL, FIRST OF ALL, THANK YOU VERY MUCH FOR THE REPORT. THIS IS VERY HELPFUL AND I LIKE THE WAY IT'S LAID OUT. 
          IT'S VERY EASY TO FOLLOW. 
          I DID HAVE A QUESTION AND YOU MAY NOT HAVE THE ANSWER AND THAT'S OKAY, YOU CAN GET BACK TO ME. 
          BUT I WAS JUST CURIOUS. 
          OVERALL, IT LOOKS LIKE WE'RE RUNNING SLIGHTLY LOWER AS A PERCENTAGE OF WHAT'S SPENT THROUGH Q2 THAN WE DID LAST YEAR. 
          AND I'M JUST WONDERING, IF WE CONTINUE AT THAT RATE, WILL WE BE. 
          HOW MUCH. HOW MUCH MONEY WILL WE HAVE LEFT OVER THAT WASN'T SPENT, THAT WAS BUDGETED AND NOT SPENT AS OF RIGHT NOW, FROM WHAT I SEE IN THE CONFERENCES WE ARE IF WE TAKE THAT INTO CONSIDERATION, THEN WE ARE EXPECTED TO ARE SPENT. 
          BUT HOWEVER, IF ITEMS COULD BE DELAYED, CERTAIN PROJECTS COULD BE DELAYED, THAT COULD BE DUE TO TIMING THAT'S JUST AT THAT POINT. WE WILL RECOGNIZE A SAVINGS AT THAT POINT OR IT WILL BE CARRIED TO THE NEW YEAR. YEAH. 
          OKAY. THAT'S FAIR. OKAY. 
          AND SO WHEN YOU SAY THE ENCUMBRANCE IS SO YOU'RE ANTICIPATING MORE ENCUMBRANCES IN THE SECOND HALF OF THE YEAR, MONEY THAT WILL NEED TO BE SPENT, THAT'S MORE THAN WHAT WE'RE SPENDING
IN THE FIRST TWO QUARTERS, IS THAT WHAT YOU'RE SAYING? IN CERTAIN AREAS, YES. 
          YEAH. OKAY. 
          ALL RIGHT. THANK YOU. SO I HAVE, I DON'T KNOW, ONE OR TWO QUESTIONS HERE, I GUESS. 
          SO I DO APPRECIATE THE DETAIL THAT IS BEING PRESENTED TO US FOR OUR OWN BOARD BUDGET. 
          THAT'S I DON'T THINK WE USED TO SEE THAT, BUT WE DO NOW, SO IT'S REALLY HELPFUL. 
          BUT NOW THAT I SEE IT, I HAVE A QUESTION ABOUT THE VERY TOP ITEM ON ATTACHMENT C. 
          THE TOP LINE ITEM, BOARD PAY IS NOT CONFORMING VERY WELL WITH WHAT WAS BUDGETED. 
          $84,000 AND HALFWAY THROUGH THE YEAR, 60,000 HAVE BEEN EXPENDED. I'M KIND OF WONDERING WHY THAT IS. 
          BUT I GUESS THE BIGGER QUESTION, THE BIGGER POINT I'D WANT TO MAKE IS LET'S DO A BETTER JOB NEXT YEAR ESTIMATING WHAT IT REALLY IS SO THAT WE DON'T LOOK LIKE WE'RE DOING SOMETHING OUTRAGEOUS HERE, YOU KNOW. SO IF YOU CAN ANSWER THE QUESTION, WHY IS IT SO FAR OFF, THAT'D BE GREAT. IF NOT, JUST LET'S TAKE A DEEPER DIVE AS WE'RE BUDGETING FOR NEXT YEAR. 
          MAYBE. YES. KAREN SIKAT, ASSISTANT FINANCE OFFICER SO I COULD SPEAK FOR THIS YEAR, THERE WERE SOME TIME CARDS THAT WERE PROCESSED THIS YEAR THAT WERE PERTAINING TO LAST YEAR AND THAT HAD HAD TO BE REPORTED FOR THIS YEAR. 
          SO THAT'S WHY IT LOOKS LIKE WE ARE NOT TRACKING AT THE PACE THAT WE WOULD WANT TO FOR THIS YEAR'S BUDGET. SO WHAT WE WE WOULD DO NEXT YEAR DIFFERENTLY AND ON TOP OF THAT, WE DO EXPECT OUR SALARIES TO GO OVER, BUT IF ANYTHING, FOR SALARIES AND BENEFITS, WE PAY THEM ALL. SO WE JUST NEED TO FIND SOME SAVINGS SOMEWHERE IN OUR APPROPRIATION TO MAKE SURE THAT WE PAY EVERYONE ACCORDINGLY. 
          THIS YEAR WE WOULD HAVE 27 PAY PERIODS AND THAT HAPPENS EVERY FOUR YEARS OR SO. SO WE ARE ANTICIPATING THAT AS WELL FOR THE REST OF THE BUDGET FOR THE SALARIES AND BENEFITS. AND WE'RE HOPING WITH THE SALARY SAVINGS THAT WE HAD PUT IN THERE. 
          I BELIEVE LIKE 4% IS WHAT OUR
BUDGET FOR SALARY SAVINGS. 
          THAT SHOULD BE ENOUGH TO COVER THAT ONE PAY PERIOD. 
          YEAH. 
          OKAY, GREAT. I DON'T HAVE ANY OTHER QUESTIONS. ARE THERE ANY. 
          IS THERE ANY PUBLIC COMMENT ON THIS ITEM? LET ME DOUBLE CHECK. BUT YEAH, THERE IS NO PUBLIC COMMENT. 
          OKAY. 
          I JUST, I HAD ANOTHER. JUST FOLLOW UP QUESTION BECAUSE I WAS LOOKING AT THAT. I'M GLAD YOU ASKED ABOUT THAT. 
          I WAS LOOKING AT THAT TOO, FOR THE BOARD OF DIRECTORS. 
          SO. SO THE SUPPLIES AND SERVICES, THIS IS JUST FOR THE SEVEN OF US. 
          THESE NUMBERS CORRECT. BUT I BELIEVE WE ALSO HAVE THE CONTINGENCY FUND WHERE WE HAD APPROVED AND ALLOTTED TRAVEL 
          [00:15:01]
FOR SOME OF OUR DCAC MEMBERS. SO THAT'S FACTORED IN. 
          BUT NOTHING HAS BEEN SPENT AS OF JUNE 30TH. SO. AND I BELIEVE THERE'S ALSO A BUDGET, A HUGE BUDGET FOR THE REPLACEMENT OF EQUIPMENT FOR THIS YEAR. 
          SO NOTHING HAS BEEN SPENT OUT OF THAT FOR 2026. WHAT WOULD BE INCLUDED UNDER SERVICES? SERVICES, DO YOU HAVE THAT INFORMATION? I DO NOT, BUT WE COULD, WE COULD ALWAYS FOLLOW UP. 
          WE WILL FOLLOW UP
ON THAT QUESTION. 
          OKAY, THANK YOU. THANK YOU SO MUCH. ALL RIGHT. 
          WELL, WE'RE CALL. YOU HAVE IN TURN REMINDED ME OF A QUESTION I FORGOT TO ASK. I'M LOOKING AT THIS AND I SEE A LITTLE NOTE HERE THAT I OVERLOOKED. 
          SO I FIGURE I FEEL I SHOULD KNOW THIS, BUT I'M NOT SURE WHAT THE ANSWER IS. AGAIN, UNDER SERVICES, WHAT ARE MEMBERS, THERE'S $10,000 FOR MEMBERSHIPS FOR THE BOARD. I'M NOT EVEN SURE WHAT THAT IS. 
          MAYBE THAT'S SOMETHING FOR THE CLERK. I DON'T KNOW. 
          THAT COULD BE SOME ANNUAL FEES. 
          MAYBE WHEN YOU GUYS PARTICIPATE IN CERTAIN MEMBERSHIP OR ORGANIZATION THAT YOU GUYS JOIN. I THINK THERE'S A BUILT IN. I CAN ANSWER THAT. 
          OKAY. THERE'S CERTAIN ANNUAL MEMBERSHIPS, LIKE CSDA MIGHT BE ONE OF THEM. THERE'S ALSO, WE'RE TRYING TO FIGURE OUT WHERE WE PAY CHAMBERS MEMBERSHIP IN SOME CHAMBERS OF COMMERCE. 
          YES. COME OUT OF. YES. 
          AND THEN I JUST SAW ONE COME THROUGH MY EMAIL. I CAN'T REMEMBER WHO IT'S FOR, BUT I THINK DIRECTOR DECHAMBEAU WANTED TO BE A PART OF A GROUP. AND SOME GROUPS DO REQUIRE ANNUAL MEMBERSHIPS TO BE PART OF THAT GROUP. 
          SO THAT'S WHERE IT COMES FROM, I GUESS. I'LL KEEP IN MIND THAT THIS IS ONLY HALFWAY THROUGH THE YEAR AND THERE'S A WHOLE NOTHER. A WHOLE NOTHER 2/4 TO KIND OF CATCH UP, I GUESS MORE SO. 
          SO. YES. SO IS. 
          IT'S. IT'S MEMBERSHIPS THAT WE AS A GROUP. CORRECT. 
          ARE PART OF. CORRECT. IT'S THE BOARD AS A WHOLE. 
          AND FOR ALSO CLARIFICATION, MY DEPARTMENT HAS ALSO BEEN WORKING TO TRY AND APPROPRIATELY PLACE THE FUNDING BECAUSE SOMETIMES FUNDS WERE COMING OUT OF, LIKE, A GENERAL POT. AND SO I'M ALSO TRYING TO WORK ON MAKING SURE SOME OF THE FUNDING IS GOING TO WHERE IT SHOULD APPROPRIATELY BE INSTEAD OF JUST LUMP SUM COMING OUT OF, LIKE, BOARD OF DIRECTORS. RIGHT. 
          SO WE'RE WORKING ON CLEANING THAT UP AS WELL. 
          OKAY, THAT'S GOOD. ALL RIGHT. 
          THANK YOU. ONE MORE POINT OF CLARIFICATION. SURE. 
          ONE THING LEADS TO ANOTHER. 
          EXACTLY. SO YOU SAID THESE MEMBERSHIPS ARE FOR THE BOARD AS A WHOLE, BUT SO ALL OF THE MEMBERSHIPS ARE. 
          OR ARE THERE SOME THAT ARE JUST UNIQUE TO SOME BOARD MEMBERS? I KNOW FOR A FACT DIRECTOR DECHAMBEAU HAS ASKED TO BE A MEMBER. SO THAT WOULD BE HER MEMBERSHIP IN AN AGENCY. I DON'T KNOW OFF THE TOP OF MY HEAD WHO ALL THE MEMBERSHIPS ARE FOR, BECAUSE I HAVEN'T SEEN BEING NEW, SO I ONLY SEE WHAT COMES ACROSS MY DESK. 
          I FEEL LIKE JONAH MIGHT WANT TO CHIME IN. THE ONLY THING I WOULD POINT OUT IS THE PARK DISTRICT IS SOMEWHAT UNIQUE IN THAT ITS FISCAL YEAR IS ON A CALENDAR YEAR. MOST OTHERS ARE ON JULY 1ST. 
          SO I THINK THE MEMBERSHIPS IN PARTICULAR WOULD BE INTERESTING TO SEE AT THE NEXT QUARTERS BECAUSE THAT WILL INCLUDE THE JULY PERIOD WHEN ANY NEW MEMBERSHIPS MIGHT BE RENEWED. RIGHT? NO, THAT. ABSOLUTELY. 
          YEAH. NO, I WAS MORE CURIOUS BECAUSE I'D ACTUALLY NEVER HEARD OF THAT. SO I DIDN'T KNOW THAT WE. 
          THAT THERE WERE MEMBERSHIPS AVAILABLE TO BOARD MEMBERS, EITHER AS A WHOLE OR INDIVIDUALLY. SO THAT'S. 
          SUCH IS THE POWER OF PROVIDING THE BOARD OF DIRECTORS BUDGET TO THE BOARD OF DIRECTORS. 
          I REALLY APPRECIATE IT. I MEAN, CERTAINLY THINGS LIKE. 
          LIKE, YOU KNOW, THE CONFERENCES WE GO TO AND SOME OF THE LARGER GROUPS LIKE THAT YOU MENTIONED. 
          BUT I HADN'T REALLY THOUGHT ABOUT INDIVIDUAL CHAMBERS AND OTHER GROUPS THAT PEOPLE MAY BE ASKING TO BE MEMBERS OF. 
          SO THAT'S. YEAH. 
          SOMETIMES IF THERE'S CONFERENCES THAT BOARD MEMBERS WANT TO ATTEND, IT'S CHEAPER IF YOU'RE A MEMBER. 
          SO THEN WE WOULD REGISTER YOU AS A MEMBER. LIKE, I THINK PROBABLY DIRECTOR DECHAMBEAU WANTED TO BE PART OF LEAGUE OF CALIFORNIA CITIES TO GO OF THE LEAGUE OF CALIFORNIA CITIES CONFERENCE PREVIOUSLY. 
          I DON'T KNOW THAT SHE'S
ATTENDING THIS YEAR. SO THAT MIGHT HAVE BEEN ONE. OKAY, THANK YOU. 
          YOU KNOW, THIS CUT NOW. NOW IT BRINGS UP ANOTHER QUESTION. THE DOMINOES ARE FALLING. 
          I WOULD REALLY LIKE TO SEE A LISTING OF THE MEMBERSHIPS THAT WE. 
          WE ARE CURRENTLY IN, WHETHER THAT'S FORMAL, INFORMAL, WHATEVER WAY, YOU KNOW, IS APPROPRIATE. COULD BE. 
          COULD BE INFORMAL. JUST SO, JUST TO GET A OVERALL PICTURE OF WHERE WE ARE, YOU KNOW, MAYBE THERE MIGHT BE ONE THAT I THOUGHT WE WERE IN AND WE'RE NOT AND WE SHOULD BE, SO, YOU KNOW, THAT KIND OF THING. SO. 
          APPRECIATE THAT. DAVE AND I
CAN WORK ON THAT. ALL RIGHT. 
          OKAY. ANY COMMENTS? OH, WE'RE 
          [00:20:03]
KIND OF DOING COMMENTS IN THERE TOO. I JUST, FOR A COMMENT, I JUST WANT TO SAY I LIKE THE WAY YOU'RE INCLUDING THE ENCUMBRANCES IN THE PROJECTION BECAUSE THAT'S A LOT MORE USEFUL TO REFLECT REALITY THAN JUST STICKING TO A STRICT, YOU KNOW, THESE ARE THE EXPENDITURES AND WHATEVER ABOUT EVERYTHING ELSE. 
          SO I WANTED TO APPRECIATE THAT. AND I THINK THE OTHER STUFF IS JUST PRETTY, PRETTY MINOR. SO ANYWAY, I DON'T HAVE ANYTHING ELSE. 
          ANY LAST MINUTE IDEAS HERE. 
          NO. THANK YOU VERY MUCH FOR THE REFERENCE. 
          THANK YOU. APPRECIATE THAT. 
          YEAH. 
          ALL RIGHT, THE NEXT ITEM IS ITEM 4B, WHICH IS RECOMMENDATION TO THE BOARD OF DIRECTORS TO ACCEPT THE. WAIT, WERE WE SUPPOSED TO VOTE? WERE WE SUPPOSED TO VOTE ON. WAS THAT AN ACTION ITEM? WAS AN ACTION ITEM, YEAH. 
          OKAY, SO. SO MOVED. YES, EXACTLY. 
          AND I WOULD SECOND. ALL IN FAVOR? AYE. OKAY. 
          SO IT'S NOW RECOMMENDED TO THE FULL BOARD. THANK YOU. 
          ALL RIGHT, 4B IS RECOMMENDATION TO THE BOARD OF DIRECTORS TO ACCEPT THE EAST BAY REGIONAL PARK DISTRICT RETIREMENT AND OPEB PLAN UPDATES. 
          SO, GOOD MORNING AGAIN, I'M KAREN SICAT, ASSISTANT FINANCE OFFICER IN FINANCE AND MANAGEMENT SERVICES. AT OUR LAST FINANCE COMMITTEE MEETING, WE HEARD FROM OUR PARS AND PFM REPRESENTATIVES ON HOW OUR EBRPD RETIREMENT PLANS, WHICH WERE OUR PLANS PRIOR TO THE DISTRICT MOVING TO THE CALPERS, ARE DOING ON BOTH THE PERFORMANCE AND ADMINISTRATIVE SIDE OF THINGS. SO TODAY WE ARE CONTINUING THAT CONVERSATION, BUT THIS TIME WE WOULD HAVE SOMEONE FROM THE ACTUARY SIDE OF THE UPDATE. 
          AND I'D LIKE TO INTRODUCE MARK SCHULTE FROM VIA ACTUARIAL SOLUTIONS. AND MARK AND HIS TEAM HAS BEEN PROVIDING ONGOING ACTUARIAL SUPPORT FOR THE PARK DISTRICT, PARTICULARLY ON THE EBRPD RETIREMENT PLAN AND THE OPEB PLAN. SO HE WILL GIVE US SOME UPDATES ON THE LATEST ACTUARIAL EVALUATION RESULTS, SOME KEY TRENDS THAT HE'S SEEING THAT THE DISTRICT SHOULD BE AWARE OF, AND THE LONG TERM OUTLOOK OF THESE PLANS. 
          SO INCLUDING IN HIS PRESENTATION IS THE POTENTIAL EVALUATION OF AN ANNUITY PURCHASES FOR OUR EBRPD RETIREMENT PLANS. 
          AND SO AFTER MARK'S PRESENTATION AGAIN, WE WILL BE REQUESTING THE FINANCE COMMITTEE TO MOVE THIS ITEM FORWARD TO THE FULL BOARD FOR ACCEPTANCE FOR THE UPDATE. AND WITH THAT, I'LL TURN IT OVER TO MARK. 
          GREAT. IT'S GOOD TO BE HERE TODAY. AND ONCE AGAIN, MARK SCHULTE FROM VIA ACTUARIAL SOLUTIONS. 
          WE'VE BEEN THE ACTUARY FOR THE DISTRICT'S PENSION AND RETIREE HEALTHCARE OPEB PLANS FOR ABOUT SEVEN YEARS NOW. AND EACH YEAR WE PROVIDE AN UPDATE ON A DIFFERENT TOPIC, USUALLY FORMERLY KNOWN AS THE TRANSAMERICA PLANS, NOW THE PARS RETIREMENT PLANS, THE OPEB PLAN OR THE PERS PLANS. THIS TIME WE'RE GOING TO FOCUS ON THE PARS PLANS, BUT THERE WILL BE A LITTLE BIT OF OPEB UPDATE AS WELL. 
          SO WE'LL GET STARTED HERE AND I'LL FIRST GOING TO BEGIN WITH JUST A LITTLE BIT OF ACTUARIAL BACKGROUND. 
          THERE'S QUITE OFTEN A LOT OF TECHNICAL TERMINOLOGY THAT GOES
INTO THESE CALCULATIONS. 
          THEN WE'LL FOCUS ON THE PARS PLANS AS I MENTIONED, THE OPEB UPDATE AND THEN TALK ABOUT ANNUITY PURCHASE CONSIDERATIONS AS KAREN MENTIONED. 
          AND THIS IS REALLY A COMPLEMENT TO THE PRESENTATION RECEIVED LAST TIME WHICH WAS FOCUSED MORE ON THE INVESTMENTS. I ACTUALLY HAVE A QUESTION BEFORE WE GO ANY FURTHER. I SHOULD HAVE MENTIONED IT MORE UP FRONT. 
          WHAT IS PARS STAND FOR DEFINED IN THE PUBLIC AGENCY RETIREMENT SERVICES, I BELIEVE SO THEY'RE AN ORGANIZATION THAT ESSENTIALLY PROVIDES ADMINISTRATIVE SERVICES TO MANY OPEB AND INDEPENDENT PENSION PLANS IN CALIFORNIA. ALL RIGHT, THANK YOU. OKAY. 
          SO THE BACKGROUND, WHAT WE DO AS ACTUARIES IS TRY TO REALLY JUST PUT A PRICE TAG ON THE VALUE OF THESE
PENSION PROMISES OR OPEB PROMISES THAT HAVE MADE TO CURRENT AND FUTURE RETIREES. 
          SO WHEN A PUBLIC AGENCY LIKE THE DISTRICT PROMISES A PENSION BENEFIT, YOU NEED TO KNOW WHAT THAT EVENTUAL COST IS GOING TO BE OR AT LEAST ESTIMATE THAT COST SO THAT 
          [00:25:01]
YOU CAN SET ASIDE ENOUGH MONEY TODAY TO PAY FOR THOSE PROMISES WHEN THE BENEFITS ARE DUE. SO THAT'S REALLY AT THE HEART OF WHAT WE DO IS TRY TO ESTIMATE THE VALUE OF THESE PENSION PROMISES. 
          AND THEY'RE CONTINGENT ON MANY THINGS. THERE'S A LOT OF ASSUMPTIONS THAT GO INTO IT. I THINK IN PREVIOUS MEETINGS I'VE MENTIONED THAT THE MOST SIGNIFICANT ASSUMPTION IS THE INVESTMENT RETURN. 
          IF YOU CAN'T HIT YOUR INVESTMENT RETURN ASSUMPTION, YOU'RE GOING TO STRUGGLE AND THE PLAN WILL REQUIRE MORE CONTRIBUTIONS. AND THERE'S JUST THIS BALANCE. IF YOU DON'T HIT THE INVESTMENT RETURN, YOU NEED MORE CONTRIBUTIONS TO FUND THAT SAME BENEFIT PROMISE. 
          THE OTHER IS LONGEVITY ALSO. 
          WE CALL IT MORTALITY IN THE TRADE. 
          BUT THOSE HAVE REALLY, REALLY BEEN UPDATED TO CONTEMPORARY MODELS FOR MOST PUBLIC PENSION PLANS OVER THE PAST DECADE OR SO. 
          AND YOURS IS NO DIFFERENT. 
          SO THOSE ARE FAIRLY STEADY AS WELL. THE OTHER THING I'LL MENTION IS THAT THESE LIABILITIES ARE MOVING TARGETS. 
          SO WE DO A FRESH MEASUREMENT EVERY TWO YEARS FOR BOTH THE PENSION AND OPEB PLANS. AND PENSION LIABILITIES GENERALLY MOVE PRETTY STABLE. 
          BUT AS WE'LL SEE LATER, THE OPEB LIABILITIES, THERE ARE JUST A LOT MORE FACTORS INVOLVED THERE AS FAR AS HOW THEY MOVE OVER TIME. 
          AND SO THEY'RE A LITTLE BIT MORE VOLATILE. SO AT THE HEART OF WHAT WE DO, AND WE'LL LOOK AT THIS ACTUALLY IN ANOTHER COUPLE SLIDES, IS WE PROJECT OUT PAYMENTS. 
          WHAT DO WE THINK THE DISTRICT HAS TO PAY FOR YOUR PENSION RETIREES IN THE FUTURE? AND HERE WE'VE BROKEN IT DOWN BETWEEN THE GENERAL EMPLOYEES PLAN AND THE SWORN SAFETY PLAN. 
          AND BOTH OF THESE HAVE BEEN CLOSED FOR MANY YEARS TO NEW ENTRANTS. THERE'S ROUGHLY 130 MEMBERS IN THE GENERAL PLAN AND ABOUT 30 OR SO IN THE SWORN SAFETY PLAN. 
          AND WHAT THIS CHART SHOWS IS WHAT WE THINK THE ANNUAL EXPENDITURE IS GOING TO BE TO PAY FOR THOSE PENSION BENEFITS. 
          SO JUST UNDER $4.5 MILLION NOW TRAILING OUT OVER TIME. 
          PROBABLY THE KEY TAKEAWAY IS THAT THESE PLANS COULD BE PAYING BENEFITS FOR ANOTHER 30, 40 PLUS YEARS. 
          SO PENSION BENEFITS HAVE VERY LONG TAILS ON THEM, WE CALL THEM AND JUST KNOW THAT YOU'RE RESPONSIBLE FOR THAT. SO GETTING INTO THE SPECIFICS OF THE PARS PENSION PLANS, HERE'S A SUMMARY OF THE CENSUS DATA. AND THIS IS, YOU KNOW, OVER 18 MONTHS OLD. 
          THAT'S THE LAST TIME THAT WE ACTUALLY COLLECT CENSUS DATA. 
          BUT WE HAVE HAD A KIND OF A MID CYCLE UPDATE AND THE COUNTS HAVEN'T CHANGED MUCH. 
          SO AS I MENTIONED, ABOUT 130 OR SO MEMBERS IN THE GENERAL PLAN, ABOUT 30 IN THE SWORN SAFETY. 
          MOST IMPORTANTLY IS WE HAVE THESE CATEGORIES, ACTIVE EMPLOYEES WHO ARE CURRENTLY EARNING BENEFITS IN THE PLANS TERMINATED VESTED. SO THEY TERMINATED A WHILE AGO BUT HAVE A BENEFIT DUE WHEN THEY EVENTUALLY RETIRE. AND THEN THE RETIREES RECEIVING BENEFITS. 
          AND THERE'S STILL ONE MEMBER ACCRUING BENEFITS IN THE GENERAL EMPLOYEES PLAN. SO THAT PLAN IS STILL ACCRUING A SMALL LIABILITY EACH YEAR FOR THAT PERSON. ON THE TERMINATED VESTED SIDE, THAT IS SOMETHING THAT THERE'S BEEN AN EFFORT TO CONTACT THOSE PARTICIPANTS IF THEY'RE ELIGIBLE TO RECEIVE BENEFITS. 
          SO I THINK ON THE GENERAL EMPLOYEE SIDE, MOST OF THOSE TERMINATED VESTED HAVE COMMENCED BENEFITS OVER THE PAST COUPLE YEARS. 
          AND THE DISTRICT'S IN THE PROCESS OF VALIDATING THE ONE REMAINING SWORN SAFETY TERMINATED VESTED PARTICIPANT. BUT WHAT WE DO IS WE GATHER THE CENSUS DATA EVERY TWO YEARS WE CALCULATE OUR LIABILITIES TO COME UP WITH RECOMMENDED CONTRIBUTIONS AND THEN ANNUALLY THE DISTRICT NEEDS TO DISCLOSE THE ACCOUNTING LIABILITY AND FUNDED STATUS ON YOUR FINANCIAL STATEMENTS. 
          SO AGAIN, JUST REVISITING THIS PROJECTED PAYMENTS TO ME, THE TWO TAKEAWAYS FROM THIS ARE THE GENERAL EMPLOYEES PLAN IS MUCH LARGER, RELATIVELY SPEAKING THEN THE SWORN SAFETY. IT'S ABOUT $42 MILLION LIABILITY VERSUS ABOUT $4 MILLION LIABILITY FOR THE SWORN SAFETY PLAN. 
          BUT AGAIN THE LONGEVITY OF THE PLAN THAT LIKELY THESE WILL BE PAYING BENEFITS FOR SEVERAL DECADES. 
          NEXT WE MOVE ON TO THE INVESTMENT RETURN AND THE NUMBERS GET A LITTLE SMALL HERE. BUT WHAT WE WANT TO FOCUS ON IS, IS THE RETURNS RELATIVE TO THE ASSUMPTION. SO THESE GREEN BARS IF YOU MIGHT NOTICE, ARE NOT RELATIVE TO 0%. 
          THEY'RE ALL RELATIVE TO ROUGHLY 5%. I THINK THE INVESTMENT RETURN ASSUMPTION IS 4 AND 3/4. SO ANYTHING BELOW THAT WOULD BE KIND OF AN UPSIDE DOWN BAR BECAUSE THAT IS CONSIDERED AN ACTUARIAL LOSS. 
          IT REQUIRES MORE CONTRIBUTIONS DOWN THE ROAD. AND SO WHAT IT SHOWS THAT EVEN IF YOU HAVE A YEAR WHERE OH WE EARNED 3% SAY BACK IN 2016, THAT'S STILL BELOW THE EXPECTATION VERSUS IF YOU HAVE A YEAR LIKE 2022, NEGATIVE 13% RETURN, WELL THAT'S REALLY ABOUT 18% BELOW THE EXPECTATION 
          [00:30:01]
OF 5% OR SO. SO WE WANT TO BE CAREFUL THAT YOU ARE MEETING THAT LONG TERM INVESTMENT RETURN OVER TIME. 
          IN GENERAL, I THINK THAT THE DISTRICT'S INVESTMENTS HAVE DONE A GOOD JOB AND THE BLACK DOTTED LINE IS ACTUALLY THE ASSUMED RETURN AND THAT HAS TRENDED DOWN OVER THE YEARS. AND THAT'S THE DISTRICT HAS ESSENTIALLY DE RISKED SOME OF THE INVESTMENTS MOVING FROM MORE EQUITY EXPOSURE TO FIXED INCOME, WHICH IS VERY APPROPRIATE FOR A MATURE PENSION PLAN LIKE THIS. QUESTION. 
          YES, I HAVE A QUESTION WHILE YOU'RE ON THE SITE. SO FOR THIS SAME PERIOD OF TIME, DO YOU KNOW WHAT THE ACTUAL OVERALL INVESTMENT WOULD HAVE BEEN? I DON'T HAVE IT OVER THE ENTIRE TIME PERIOD. I DO HAVE A NOTE THAT THE AVERAGE OVER THE PAST FIVE YEARS WAS JUST UNDER 3.5% WHICH ILLUSTRATES THAT NEGATIVE 12 OR 13% HAS A BIG EFFECT ON THE RETURN. ONCE YOU GET OUT A COUPLE MORE YEARS AND THAT FALLS OFF THE THE AVERAGE, A FIVE YEAR AVERAGING PERIOD, I THINK THE AVERAGE WILL POP BACK UP AGAIN. BUT YEAH, IT'S A GREAT QUESTION. 
          I ALWAYS TELL THAT BOARDS TO BE CAUTIOUS ABOUT WHAT PERIOD AN AVERAGE RETURN IS OVER BECAUSE IT'S REALLY EASY TO MANIPULATE IT TO BE LIKE, OH, WE'VE AVERAGED SEVEN AND A HALF PERCENT OR WHATEVER THE NUMBER IS OVER THE LAST SEVEN OR EIGHT YEARS, BUT IT ONLY TAKES A YEAR OR TWO TO REALLY SWING THAT. YEAH, I THINK WHAT I CAN DO NEXT TIME IS I'LL PUT IN LIKE A ROLLING FIVE YEAR AVERAGE AND IT WILL KIND OF BE MUCH SMOOTHER RETURN. 
          GREAT, THANK YOU. 
          WELCOME. SO THIS CHART AND AGAIN THE NUMBERS GET A LITTLE SMALL, BUT THIS IS PROBABLY THE MOST IMPORTANT ONE FOR THE PLANS. AND THERE'S A FEW THINGS GOING ON. 
          THE BLUE DOTTED LINE THAT KIND OF STARTS DOWN LOWER, EVENTUALLY GOES OVER THE RED DOTTED LINE. 
          THOSE ARE PLAN ASSETS. THE RED SOLID LINE IS PLAN LIABILITIES. 
          AND THAT SHADED SPACE ON THE LEFT PART IS AN UNFUNDED LIABILITY. AND TO THE RIGHT IS, I HATE TO USE THE WORD SURPLUS. I'LL CALL IT A FUNDING CUSHION IN EXCESS ASSETS. 
          SO THE BIG STORY FROM THIS CHART IS THE GREAT FUNDING PROGRESS THAT THESE PLANS HAVE MADE OVER THE PAST 15 YEARS OR SO. TO GO FROM 56% FUNDED TO NOW BE IN A OVERFUNDED POSITION IS QUITE AN ACHIEVEMENT. 
          THERE'S A NUMBER OF FACTORS GOING INTO THAT. 
          NUMBER ONE IS CONSISTENT CONTRIBUTIONS AND REALLY BEING DEDICATED TO PUTTING IN THE RECOMMENDED CONTRIBUTIONS. WE'LL LOOK AT THAT ON THE NEXT SLIDE. 
          THAT'S THE KEY TO ANY PENSION PLAN IS IF YOU BUDGET, IF YOU HAVE A RECOMMENDED CONTRIBUTION, YOU GOT TO PUT IT IN. 
          AND I THINK THE DISTRICT'S DONE A WONDERFUL JOB OF MAKING SURE THAT THIS IS A PRIORITY TO FUND THE PENSION PLAN. 
          ALSO HELPING THINGS OUT IS BECAUSE THESE ARE CLOSED AND NEW ENTRANTS, THE LIABILITY GROWTH IS MUCH SMALLER, IF NOT NEGATIVE, COMPARED TO AN ONGOING PLAN. SO THAT TARGET, YOU'RE JUST GOING AFTER A TARGET THAT'S NOT INCREASING AT THE SAME RATE AS YOUR INVESTMENTS ARE. 
          SO IF WE COMPARE THIS TO SAY YOUR PERS PLANS, THAT'S A TOUGHER GAP TO CLOSE BECAUSE THE LIABILITIES ARE GROWING AND YOUR INVESTMENTS ARE GROWING AND TRYING TO CATCH UP. BUT HERE IT'S LITTLE BIT EASIER TO TARGET TO CATCH ANYWAY. A LOT OF GREAT PROGRESS WORKED WITH PLANS BEFORE THAT HAVE STARTED IN THE 50S PERCENT RANGE. 
          AND VERY FEW OF THEM HAVE GOTTEN TO THIS TYPE OF FUNDING POSITION WITHOUT MAKING THOSE CONCERT EFFORT ON THE CONTRIBUTIONS. WE CAN SEE THAT THE PLAN WENT UP TO ABOUT 112% IN 2022. THAT WAS A DIFFICULT YEAR ON THE INVESTMENT SIDE AND LOST ABOUT 14% OF THE FUNDED STATUS. 
          SO JUST A REMINDER THAT IT ONLY TAKES A YEAR TO LOSE QUITE A BIT OF FUNDED STATUS. THESE ARE SNAPSHOTS. BUT SINCE THEN, AGAIN, WITH ONGOING CONTRIBUTIONS, DECLINING LIABILITIES, NOW WE'RE AT A FUNDED STATUS OF ROUGHLY 112%. 
          SO IF THE ASSETS CONTINUE, IF THAT CURVE CONTINUES THE WAY IT IS PROJECTED OUT, GOING TO HAVE A SURPLUS GREATER THAN WHAT WE'RE SEEING RIGHT NOW, IS THERE ANY ACTION THAT WE WOULD TAKE A FEW YEARS OUT IF IT STARTS TO GROW TO SOMETHING SIGNIFICANTLY MORE THAN $5.2 MILLION? YEAH, I THINK NUMBER ONE IS ON THE CONTRIBUTION SIDE. SO WE FINISHED UP RECOMMENDED CONTRIBUTIONS FOR 2026 AND IN THE RELATIVELY NOMINAL, SAY 10,000 TO $40,000, SOMETHING, YOU COULD PROBABLY PUT THOSE AT ZERO, BUT OTHERWISE THERE'S NOT A WHOLE LOT YOU CAN DO UNTIL WE TALK ABOUT THE TOPIC AT THE END, WHICH IS WINDING DOWN THE PLANS AND ANNUITIZING. 
          OH, RIGHT, RIGHT. THAT'S A GREAT QUESTION. SO RIGHT NOW I THINK IF ALL GOES AS IS, 
          [00:35:01]
YOU KIND OF LET IT RIDE AND SEE HOW IT TURNS OUT. 
          YEAH, OKAY. OKAY. THE NEXT ONE IS JUST AN EMPHASIS ON CONTRIBUTIONS. 
          AGAIN, A CONCERTED EFFORT. 
          THE BLUE DOTTED LINE ARE THE SWORN SAFETY CONTRIBUTIONS. A FEW HUNDRED THOUSAND DOLLARS PER YEAR FOR THE PAST SEVERAL YEARS ON THE GENERAL EMPLOYEES SIDE, UP TO TWO AND A HALF MILLION, GRADUALLY TRENDING DOWN AND NOW A SIGNIFICANT DECREASE. 
          AND HOW THIS WORKS IS WHEN WE COME UP WITH OUR RECOMMENDED CONTRIBUTIONS, WE AMORTIZE OR SPREAD OUT THE UNFUNDED LIABILITY OVER A PERIOD OF TIME. AND SO WHAT WE'RE SEEING IS THAT THE LAST OF THAT UNFUNDED LIABILITY IS ESSENTIALLY BEING PAID DOWN IN 2025. AND SO NOW THE CONTRIBUTIONS, YOU'RE NOT PAYING OFF ANY MORE DEFICIT WITH YOUR ANNUAL CONTRIBUTIONS. 
          BUT THIS IS REALLY A BIG ACHIEVEMENT TO HAVE MADE THAT COMMITMENT TO FUNDING THE PENSION PLANS. 
          ALL RIGHT, ANY QUESTIONS ON THE PART FUNDS? I AM GOING TO CYCLE BACK TO THAT IN A COUPLE SLIDES, BUT WANTED TO TALK ABOUT OPEB AS LONG AS I WAS HERE TOO. 
          OKAY, GOOD. 
          ALL RIGHT, WELL, THIS IS GOING TO BE A BRIEF OPEB UPDATE. 
          WE'RE GOING TO GET RIGHT TO THE FUNDED STATUS. AND AGAIN, IT'S A PRETTY SIMILAR STORY. 
          YOU KNOW, THE PLAN STARTED OUT UNDER 50% FUNDED BACK IN 2013 AND NOW HAS A SUBSTANTIAL FUNDING CUSHION.
AND THERE'S MANY DIFFERENT REASONS FOR THAT AS FAR AS
ACCUMULATING AND CLOSING THAT DEFICIT. AGAIN, ONGOING CONTRIBUTIONS TO THE PLAN AND BEING COMMITTED TO THAT. 
          THE OTHER ITEM THAT'S UNIQUE TO OPEB PLANS IS UNLIKE A PENSION PLAN WHICH IS CONTINUOUSLY PAYING OUT BENEFITS WHILE YOU'RE CONTRIBUTING TO THE TRUST, AN OPEB PLAN DOES NOT MAKE BENEFIT PAYMENTS DIRECTLY TO RETIREES. THE DISTRICT PAYS THOSE SUBSIDIES, WHATEVER THEY MAY BE. AND IF YOU WANT TO BE REIMBURSED BY THE TRUST, YOU ACTUALLY HAVE TO REQUEST THAT MONEY. 
          AND SO DURING THESE ACCUMULATION PHASE UP THROUGH ABOUT 2019, THE DISTRICT WAS CONTRIBUTING TO THE TRUST, PAYING BENEFITS OUT OF GENERAL ASSETS, BUT NOT REQUESTING REIMBURSEMENTS. 
          AND SO THEN THE TRUST COULD JUST GROW INTERNALLY. WE CALL THAT HYPER FUNDING. 
          IT'S A REALLY QUICK WAY TO IMPROVE OPEB FUND FUNDED STATUS VERY QUICKLY. IF YOU'RE NOT DRAINING IT AT ALL, YOU'RE JUST PUTTING MONEY IN AND INVESTING IT. SO IT DID THE JOB.
LIKE YOU, YOU GOT UP TO A SIGNIFICANT FUNDED STATUS BACK IN END OF FISCAL 2021, 2022 HAPPENED, YOU AGAIN LOST ABOUT 12% IN FUNDED STATUS. AND THEN THE ASSETS HAVE CONTINUED TO GROW AT A MODEST CLIP SINCE THEN. 
          ON THE LIABILITY SIDE, IT'S MORE INTERESTING THAT UNLIKE A PENSION TRAJECTORY, WHICH IS RELATIVELY PREDICTABLE AND THERE'S NOT A LOT OF FACTORS OTHER THAN LIFESPAN AND THEN SOME ASSUMPTIONS ABOUT WHEN PEOPLE RETIRE, HOW THEIR BENEFITS ARE GOING TO GROW. 
          FOR OPEB LIABILITIES, WE NEED TO ALSO MIX INTO THAT. WHAT ARE HEALTHCARE COSTS GOING TO DO NEXT YEAR AND THE YEAR AFTER, 50, 60, 70 YEARS FROM NOW? AND IT'S REALLY HARD. 
          LIKE WE HAVE TO HAVE A MODEL, BUT THERE'S A MUCH LESS PRECISENESS TO IT THAN YOU CAN HAVE WITH THE PENSION LIABILITY. 
          IT'S JUST GOING TO BE MORE VOLATILE. THERE'S NOT A WHOLE LOT TO DO ABOUT IT, BUT WE HAVE TO MODEL OUT WHAT IS THIS ESTIMATED COST. SO PART OF THAT IS THE UNCERTAINTY OF RETIREE HEALTH CARE LIABILITIES FOR THE DISTRICT. 
          THEY'VE REMAINED RELATIVELY LEVEL. THE OTHER PART IS SOMETHING I MENTIONED A YEAR OR TWO AGO IS THE DISTRICT HAD SOME ADJUSTMENTS TO SOME OF THE RETIREES THAT WERE RECEIVING PAYMENTS THAT WERE NOT ON THE DISTRICT'S HEALTH PLAN. THEY WERE ESSENTIALLY RECEIVING A CASH SUBSIDY TO PAY FOR THEIR HEALTHCARE COVERAGE, BUT THAT NEEDS TO BE SUBSTANTIATED EACH YEAR. 
          SO WHEN THE DISTRICT STARTED ASKING OR REQUIRING SUBSTANTIATION, THE NUMBER OF RETIREES REQUESTING THAT COVERAGE DROPPED AT ABOUT HALF. SO THERE'S QUITE A FEWER PEOPLE RECEIVING THOSE PAYMENTS NOW. I THINK THE NUMBERS THERE ARE 170 OF THEM IN 2021 AND THERE'S 91 OF THEM LAST TIME WE COLLECTED CENSUS. 
          SO THAT'S, THAT'S PRESSING THAT LIABILITY LINE DOWN AS WELL. SO THIS DOES REFLECT RECENT PREMIUM INCREASES AT THE BEGINNING OF THE YEAR FROM, FROM PERS FOR THEIR HEALTH PLANS. 
          BUT MOST OF YOUR SUBSIDIES NOW ARE FOR A FIXED AMOUNT. 
          ANYONE HIRED AFTER 2012 ESSENTIALLY GETS A FIXED AMOUNT SUBSIDY. SO LEGACY RETIREES, THEIRS MAY VARY BASED ON HEALTH CARE COSTS, BUT IN THE FUTURE, WE THINK THAT LIABILITY LINE WILL BE A LITTLE MORE STABLE THAN IT HAS IN THE PAST. AGAIN, THE PLAN'S IN A GOOD POSITION AND THIS WILL ACTUALLY LEAD INTO FUNDING QUESTIONS. 
          SO WHEN WE COME UP WITH THESE CONTRIBUTIONS, THEY'RE BASED ON NUMBERS TWO YEARS PRIOR TO THE FISCAL YEAR. WELL, TWO YEARS AGO, 
          [00:40:01]
THE PLAN WAS STILL 100, MAYBE 110% FUNDED AND THERE WERE RECOMMENDED CONTRIBUTIONS. 
          AT THIS POINT, WE COULD PROBABLY GO BACK AND ADJUST THOSE BASED ON RECENT INVESTMENT PERFORMANCE TO SAY IF YOU WANTED TO, YOU COULD PROBABLY DIAL BACK THE OPEB CONTRIBUTIONS FOR 2026 AND 2027 A LITTLE BIT. 
          SO THAT'S SOMETHING WE CAN TALK ABOUT WITH FINANCE STAFF ON THE SIDE IF THEY'RE INTERESTED IN THAT. OKAY, QUESTIONS ON THIS SLIDE AT ALL? OKAY. 
          THIS IS JUST A PROJECTION OF PAYMENTS FOR THE OPEB PLAN, REALLY. 
          JUST SUPPOSED TO ILLUSTRATE THIS IS KIND OF WHAT A TYPICAL PENSION OR OPEB PLAN IS GOING TO LOOK LIKE FOR A CLOSED GROUP. 
          PAYMENTS GOING UP AS POPULATION AGES, GOING DOWN OVER TIME. YOU CAN KIND OF IGNORE THE GREEN BARS. 
          THOSE ARE REALLY AN ACCOUNTING COST OR LIABILITY. 
          BUT THE EXPLICIT SUBSIDY, THE BLUE BARS, JUST UNDER $3 MILLION, $2.5 MILLION OR SO IN ANNUAL PAYMENTS NOW FOR HEALTHCARE SUBSIDIES INCREASING INTO THE PROJECTED TO BE IN THE $5.5 MILLION RANGE AND THEN GRADING DOWN OVER TIME. ALL RIGHT. AND THEN INVESTMENT RETURNS. 
          I DON'T THINK I'M GOING TO SPEND MUCH TIME ON THIS. 
          IT'S SIMILAR, IT'S A SHORTER TIME PERIOD JUST BECAUSE WE DIDN'T HAVE AS MUCH HISTORY AVAILABLE ON THE OPEB PLAN AND IT HASN'T BEEN OUT OF TRUST FOR AS LONG. 
          BUT AGAIN, THE INVESTMENT RETURNS ARE SIMILAR BECAUSE THIS IS INVESTED DIFFERENTLY. 
          IT'S INVESTED THROUGH PERS, IT'S CALLED THEIR CERPT STRATEGY. IT HAS A HIGHER EXPECTED RETURN, HIGHER EQUITY EXPOSURE. SO IF WE LOOK AT THE FIVE YEAR RETURN HERE, IT'S ACTUALLY QUITE A BIT HIGHER THAN IT WAS IN THE PENSION PLANS. 
          BUT IT'S MORE APPROPRIATE IN THIS ONGOING OPEN PLAN THAN IT WOULD BE IN NECESSARILY YOUR CLOSED PENSION PLANS. 
          SO GOOD INVESTMENT RETURNS. I THINK THE PLAN IS IN A PRETTY STRONG POSITION AT THIS POINT. 
          ALL RIGHT, ANY QUESTIONS ON OPEB? WELL, JUST OUT OF CURIOSITY, SO WHAT WAS THE FIVE YEAR RETURN? I BELIEVE IT WAS A LITTLE OVER 7%. 
          YEAH, PRETTY GOOD. OKAY, SO THE LAST PIECE CIRCLING BACK TO THE PARS PENSION PLANS, THESE PLANS, AS YOU MAY BE AWARE THAT BACK IN, I BELIEVE 2013, IT PRECEDED OUR INVOLVEMENT, BUT ANNUITIES WERE PURCHASED FOR SOME OF THE RETIREES FROM TRANSAMERICA. 
          THE ANNUITIES THAT WERE PURCHASED WERE JUST THE AMOUNTS THAT CERTAIN RETIREES WERE RECEIVING AT THAT TIME. 
          BUT THE PENSION BENEFITS HAVE AN ANNUAL COST OF LIVING ADJUSTMENT APPLIED TO THEM. AND SO ALL THOSE FUTURE COST OF LIVING ADJUSTMENTS, ECOLAS, ARE STILL PAID FROM THE DISTRICT'S PENSION TRUST FOR THOSE RETIREES AND THEN ANYONE WHO'S RETIRED SINCE THEN. 
          THEY ALSO ARE ADMINISTERED THROUGH THE PENSION TRUST. 
          BUT THE FACT IS THE DISTRICT MADE A DECISION YEARS AGO TO ESSENTIALLY DE RISK PART OF THE PLAN BY TRANSFERRING THOSE LIABILITIES TO AN INSURANCE COMPANY AT THAT TIME. TRANSAMERICA SO OUR THOUGHT IS, AS THESE PLANS CONTINUE TO MATURE, THE DISTRICT SHOULD CONSIDER WHETHER ANOTHER ANNUITY PURCHASE WOULD BE APPROPRIATE FOR SOME OR ALL OF THE RETIREES IN THESE PLANS. 
          AND. AND THIS TIME PURCHASE THE BENEFIT WITH A COLA. 
          FULL ANNUITY WITH A COLA. 
          SO THERE'S DIFFERENT RATIONALES FOR IT. IT DOES SECURE THE BENEFIT WITH AN INSURANCE COMPANY FOR THE RETIREES. 
          IN OUR EXPERIENCE, THEY GET SEAMLESS SERVICE WITH THE INSURANCE COMPANY. 
          IT'S JUST A DIFFERENT SOURCE FOR THE DIRECT DEPOSIT OF THEIR PENSION CHECKS. AND THEN ON THE DISTRICT SIDE, IT REDUCES YOUR FUTURE ADMINISTRATIVE AND FINANCIAL RISKS. SO YOU WOULD ESSENTIALLY TRANSFER ALL THE ASSETS AND LIABILITIES TO AN INSURANCE COMPANY. 
          THEY'D TAKE OVER THE ADMINISTRATION AND PAYMENTS FOR THESE PLANS. SO THIS MEANS THAT THEY'RE INDIVIDUALIZED PER RECIPIENT, THEN THE ACCOUNT IS FOR AN INDIVIDUAL? YES. SO THEY WOULD EACH HAVE AN ANNUITY CONTRACT. 
          DO THEY HAVE ANY. MAYBE YOU'RE GOING TO GET TO THIS THOUGH. DO THEY HAVE ANY CONTROL OVER HOW, WHAT THE INSTRUMENTS THEY USE WITHIN THERE TO. 
          NOPE. IT'S WHATEVER THEIR MONTHLY PAYMENT THAT THEY'RE RECEIVING, THEY JUST HAVE THAT PROMISE THAT IT'S PAID BY THE INSURANCE COMPANY FOR LIFE. SO SIMILAR TO HOW RIGHT NOW THEY'RE RECEIVING A MONTHLY PAYMENT FOR LIFE FROM YOUR PENSION TRUST, THAT RESPONSIBILITY JUST SHIFTS TO THE INSURANCE COMPANY. 
          SO THEY DON'T HAVE TO DO ANY MANAGEMENT. 
          NOTHING? NO, NO, NO. SO WHAT WE FIND IS THAT THERE'S A TRANSITION PERIOD WHERE YOU 
          [00:45:01]
COMMUNICATE WITH THE RETIREES. 
          YOU KNOW, WE'VE PURCHASED THESE ANNUITIES. YOU'RE GOING TO BE GETTING A WELCOME PACKET FROM XYZ INSURANCE COMPANY WHO'S GOING TO BE TAKING RESPONSIBILITY FOR YOUR BENEFITS. STAY TUNED. 
          AND THEN ON A CERTAIN DATE, THESE PAYMENTS ARE GOING TO TRANSFER TO COMING FROM PARS TO THE INSURANCE COMPANY AND THEN THAT'S IT AS FAR AS THEIR INVOLVEMENT WITH THE DISTRICT ON THE PENSION PLAN. NOW THERE'S A FEW CAVEATS AND THERE'S SOME DUE DILIGENCE TO BE DONE. NUMBER ONE CAVEAT IS YOU REALLY CAN'T DO THIS WHILE THERE ARE ACTIVE MEMBERS IN THE PLAN. 
          SO ON THE GENERAL EMPLOYEE PLAN, YOU HAVE ONE ACTIVE MEMBER. 
          YOU COULD NOT PURCHASE AN ANNUITY FOR THAT PERSON. 
          SWORN SAFETY IS A DIFFERENT DEAL. 
          SINCE ALMOST EVERYBODY'S IN RETIREMENT STATUS, THAT WOULD BE RELATIVELY STRAIGHTFORWARD TO GET INSURER PRICING AND PURCHASE ANNUITIES ON THE GENERAL EMPLOYEE'S PLAN. YOU COULD EITHER WAIT OR YOU COULD PURCHASE ANNUITIES FOR ALL THE RETIREES THAT ARE CURRENTLY THERE AND THEN WAIT AND DO A LATER PURCHASE FOR THE REMAINING INDIVIDUAL. 
          IT CAN BE DIFFICULT TO GET AN INSURANCE BID ON AN INDIVIDUAL, SO. 
          BUT IT CAN BE DONE. SO I NEED TO DO A LITTLE MORE RESEARCH INTO HOW LIKELY IT IS YOU GET A BID FOR ONE PERSON. 
          BUT WE'VE DONE IT. 
          IT CAN BE DONE, BUT WE WANT TO MAKE SURE THAT WE HAVE SOME COMMITMENTS. THE OTHER THING IS THE COST. SO RIGHT NOW YOU HAVE TO FIND AN INSURANCE COMPANY WHO WILL BID ON IT TOO. 
          AND IN THE INSURANCE MARKETPLACE, THERE'S BEEN A LOT OF ACTIVITY, ESPECIALLY IN THE PRIVATE SECTOR, FOR MOVING INSURANCE PENSION LIABILITIES FROM ORGANIZATIONS TO INSURANCE COMPANIES. AND SO THEY ARE VERY INTERESTED IN BIG PLANS. THESE ARE NOT BIG PLANS. 
          SO THE POOL OF INSURANCE COMPANIES THAT WILL BID IS RELATIVELY SMALL. WE DID SOME INITIAL OUTREACH AND THERE IS AT LEAST ONE INSURER WHO IS COMMITTED THAT THEY WOULD PUT TOGETHER PRELIMINARY PRICING. 
          AND WE THINK THAT THEIR PRICING, BASED ON DISCUSSIONS, IS GOING TO BE PRETTY CLOSE TO THE FUNDED STATUS OF THE PLANS NOW. 
          SO THERE WILL BE EXCESS
ASSETS IN THE PLAN. THAT'S A WHOLE OTHER DISCUSSION OF WHAT HAPPENS
WITH EXCESS ASSETS. 
          BUT GENERALLY THOSE. 
          ONCE THE PLAN CLOSES, THE BOARD WOULD HAVE TO DECIDE, DO THOSE JUST REVERT TO YOUR JOB, GENERAL ASSETS, OR ARE THEY USED SOME OTHER FASHION? THERE ALSO IS A DISCUSSION WITH YOUR LEGAL COUNSEL AS FAR AS WHAT NEEDS TO BE DONE TO PURCHASE THESE ANNUITIES. 
          IS THERE ANY BARGAINING THAT'S INVOLVED HERE? IT SHOULD BE RELATIVELY STRAIGHTFORWARD, BUT AGAIN, YOU NEED TO HAVE YOUR BENEFITS ATTORNEY GET INVOLVED HERE. SO I WANTED TO BRING THIS TOPIC UP. 
          THERE'S KIND OF PHASES TO GO THROUGH. RIGHT NOW THE PLAN IS IN A PRETTY GOOD FUNDED STATUS POSITION. SO IF THIS IS SOMETHING THAT YOU'RE CONSIDERING, THEN WE RECOMMEND YOU TALK WITH YOUR INVESTMENT ADVISORS AS FAR AS IS THERE ANYTHING WE CAN DO TO OUR INVESTMENTS TO PROTECT OUR FUNDED STATUS? AND USUALLY WHAT THAT MEANS IS THEY ASK US FOR A PROJECTION OF PAYMENTS SO THEY CAN SEE HOW INTEREST RATE SENSITIVE YOUR PENSION LIABILITIES ARE. 
          AND THEN THEY COME UP WITH SOME TYPE OF BOND PORTFOLIO THAT WOULD MOVE IN TANDEM WITH YOUR PENSION LIABILITY. 
          SO YOU ESSENTIALLY LOCK IN THE FUNDED STATUS. THEN WE HAVE TO VALIDATE THE DATA, WHICH I THINK THERE'S BEEN A LOT OF WORK THE PAST FEW YEARS WITH THE MOVE FROM TRANSAMERICA TO PARS AS FAR AS VALIDATING RETIREE DATA. 
          BUT AGAIN, WE HAVE TO MAKE SURE THAT ANYBODY WHO'S OUT THERE THAT MIGHT BE DUE TO A PENSION BENEFIT, THAT THEIR BENEFITS HAVE BEEN VALIDATED AND THEN TALK WITH LEGAL COUNSEL TO TO GET THEIR OPINION ON WHAT SORT OF PITFALLS OR SPECIAL DECISIONS NEED TO BE MADE FOR THIS PLAN IN ORDER TO GO AHEAD WITH ANNUITIZATION. SO I WILL STOP THERE. ASK IF YOU HAVE QUESTIONS ON THIS LIKE THE CONCEPT IN GENERAL, THEN I CAN TALK ABOUT WHAT NEXT STEPS MIGHT LOOK LIKE. 
          IF YOU'RE INTERESTED IN LEARNING MORE, I HAVE ONE QUESTION. THE FOLKS WHO ARE ALREADY GETTING THEIR ANNUITIES THROUGH TRANSAMERICA, WAS THAT AN OPTION THAT WAS PROVIDED AT SOME POINT OR WERE THEY JUST MOVED OVER OR HOW DID THAT. 
          HOW DID THEY GET THERE? I DO NOT KNOW THAT. 
          I DON'T KNOW IF ANYBODY DOES. 
          DAVID. OKAY. 
          GOOD MORNING. DAVID SUMNER AUDIT MANAGER I BELIEVE THAT INITIALLY THE PLAN WAS SET WITH ANNUITY TO BEGIN WITH. 
          SO THE ORIGINAL PARTICIPANTS WERE RECEIVING IT, RECEIVING THEIR BENEFITS AS SUCH. 
          AND THEN THERE COMES A POINT THAT THEY SAY THAT THE EARNING IS NOT ADEQUATE AND ALL THAT AND WE WANT TO HAVE A HIGHER RISK AND HIGHER 
          [00:50:01]
REWARDS FOR FUTURE. AND THAT'S WHEN IT WAS MOVED TO TRANSAMERICA AND MADE SOME CHANGES AND SO ON. SO, YOU KNOW, AT THAT TIME IT WAS ACTIVE PLAN. 
          WE WERE NOT MEMBERS OF PAIRS, SO IT WAS COVERING THE ENTIRE DISTRICT. AND THEN IN 2000, THE DISTRICT SWITCHED FROM TRANSAMERICA AND ESTABLISHED PAIRS AND NEW MEMBERS OR WHOEVER THAT WAS BEING HIRED HAD NO CHOICE. 
          AND THE EXISTING MEMBERS OF TRANSAMERICA PLAN HAD THE CHOICE TO ELECT WHETHER THEY WANT TO REMAIN IN THAT OR MOVE TO PARS. 
          AND MAJORITY DID, AS YOU KNOW. SO THAT'S THE POINT. THE MAJORITY DID WHAT? MOVE BACK TO PERS? YES. 
          MOVE TO PARIS? YEAH. PEARS WAS NOT BEING OFFERED UP UNTIL THAT TIME. DISTRICT WAS HANDLING ITS OWN RETIREMENT SYSTEM WHICH THEY HAD CONTRACTED OUT WITH TRANSAMERICA. 
          RIGHT. AND I BELIEVE IT WAS ANNUITY WAS CHOSEN THAT IN INITIATION OF THE ESTABLISHMENT OF THIS RETIREMENT PLAN. SO THE PEOPLE WHO WERE ON THE TRANSAMERICA PLAN, SOME OF THE ONES WHO MOVED BRAZIL, THEY MOVED BECAUSE THEY THOUGHT THEY WOULD GET HIGHER RETURNS FROM PERS OR WOULD IT BE THE WAS LOCKED IN? PROBABLY. 
          THERE WAS A VARIETY OF REASONS. THERE WERE EMPLOYEES THAT HAD PRIOR PAIRS EXPERIENCE OR MEMBERSHIP IN PAIRS. 
          RIGHT. 
          SO MOVING TO PAIRS FOR THEM WAS EXTREMELY BENEFICIAL BECAUSE THE WAY THAT THE PAIRS SYSTEM WORKS THAT THE LONGER YOU ARE THERE, THE HIGHER THE RATE OF RETURN FOR INDIVIDUAL EMPLOYER, ALL THAT. AND THERE WAS ALSO SOME EMPLOYEES THAT WERE SAYING THAT HEY, PARIS HAS A MUCH HIGHER SECURITY TYPE OF THING FOR FUTURE AND YOU DON'T WANT TO BE DEPENDENT OR BOUND IN A PLAN THAT IS SINGULARLY OPERATED BY THE DISTRICT AND SO ON. 
          SO IT WAS OVERALL CONSENSUS THAT JUST ABOUT EVERYBODY SWITCHED TO PAIRS EXCEPT A FEW THAT DIDN'T RUN. 
          AND THERE IS ONE ACTIVE MEMBER LEFT IN THE PLAN. 
          OKAY, THAT'S HELPFUL. THANK YOU SO MUCH. 
          YOU'RE WELCOME. DO WE HAVE ANY PUBLIC COMMENT ON THIS? THERE IS NO PUBLIC COMMENT. 
          OKAY. 
          ANY COMMENTS FROM THE COMMITTEE WELL, I WAS JUST CURIOUS, IF WE DID LOOK INTO HAVING AN INSURANCE COMPANY TAKE OVER MORE OF THE. MORE OR ALL OF THE CURRENT PERS PAYMENTS, WHAT WOULD BE THE ADVANTAGE IN DOING THAT FOR US AND FOR THE EMPLOYEES? FOR THE EMPLOYEES, I DON'T KNOW IF THERE'S AN ADVANTAGE OR DISADVANTAGE. IT'S SORT OF A TRANSFER OF RESPONSIBILITY OF WHO'S ON THE HOOK FOR MAKING THE PAYMENTS. 
          DISTRICT OR AN INSURANCE COMPANY. BUT THEY WOULD BE MAKING THE PURSE THE SAME AMOUNT THAT THE PEOPLE WOULD GET UNDER PERS. WELL, NOT PERS. 
          PARS. YEAH. THE LEGACY PLAN. 
          JUST TO CLARIFY THAT. YEAH, YEAH. IT'S THE EXACT SAME BENEFIT. 
          IT'S JUST WHO'S PAYING IT. 
          SO, FOR EXAMPLE, IN THE SWORN SAFETY PLAN, THERE'S ABOUT $5 MILLION IN LIABILITY AND ALSO 5 MILLION IN ASSETS. SO THAT WOULD BE TRANSFERRED OVER TO THE INSURANCE COMPANY. 
          ALL THE MONEY, BUT ALSO THE LEGAL RESPONSIBILITY TO MAKE THE PAYMENTS. THEY WOULD CUT THE CHECKS ESSENTIALLY FOR THE NEXT 30, 40, 50 YEARS. SO DO THE AFFECTED INDIVIDUALS KNOW ABOUT THIS? IS THERE. 
          HOW DO WE. I MEAN, I'M REALLY CONCERNED ABOUT THAT. YOU KNOW, THAT'S A. 
          TO JUST GO IN THERE AND MAKE
A. I MEAN, SOMEBODY'S RETIREMENT IS LIKE A PRETTY CRITICAL THING TO THEM, AND IT'S MORE CRITICAL FOR SOME PEOPLE THAN IT IS FOR OTHERS BECAUSE OF OTHER CIRCUMSTANCES THAT THEY MIGHT FIND THEMSELVES IN. SO I WOULD WANT TO KNOW THE SORT OF OUTREACH THAT'S GONE ON SO THAT. 
          BECAUSE WE HAVEN'T HEARD ANY COMMENT HERE. WELL, THERE'S BEEN. SO I COULD DRAW ONE CONCLUSION FROM THAT, BUT IT MIGHT NOT BE THE RIGHT ONE. 
          SO WHAT'S THE DEAL WITH THAT? I WOULD SAY THIS IS ALL PRELIMINARY. YEAH. NO DECISION HAS BEEN MADE TO MOVE ANYBODY, SO. 
          BUT CERTAINLY. CERTAINLY YOU WOULD NEED TO. I ASSUME YOU WOULD NEED TO CONSULT WITH LABOR TO. 
          YES, I WOULDN'T. I KNOW THAT WE'RE NOT MAKING A DECISION, 
          [00:55:01]
BUT. YEAH.
HAVE OUR LABOR FOLKS BEEN NOTIFIED OF THIS? AGAIN, THIS IS A PRELIMINARY OPTION THAT'S BEING PRESENTED. 
          INTERESTINGLY, THE RETIREES AREN'T REALLY UNDER A LABOR UMBRELLA AT THIS POINT. RIGHT. 
          BUT MY UNDERSTANDING IS WHEN THIS WAS PREVIOUSLY DONE, THERE WAS AN OUTREACH CAMPAIGN. AND CORRECT ME IF I'M WRONG, MARK, BUT SOME OF THE RETIREES ARE ACTUALLY RECEIVING CHECKS FROM TWO DIFFERENT. 
          CORRECT. 
          BECAUSE THE ONE ENTITY BOUGHT THE VALUE OF THE ANNUITY WITHOUT THE COLA BUILT IN. 
          AND SO THEY'RE GETTING A SEPARATE CHECK FOR THAT COLA ESCALATOR. SO IT HAS BEEN DONE. 
          I DON'T KNOW. IT WAS WELL BEFORE, I THINK, OUR TIME, WHAT THE LEVEL OF OUTREACH WAS OR THE PROCESS. I WOULD ABSOLUTELY WANT TO CONSULT WITH THE LABOR PARTNERS
ON ANYTHING LIKE THAT, BECAUSE AS MARK SAID, THERE'S AN EXISTING MEMBER. 
          AND SO IT'S A, IT'S A REALLY COMMUNICATIVE TRY AND BE AS TRANSPARENT AS POSSIBLE. IT HAS BEEN MY EXPERIENCE WITH PARS PARTICULARLY. THEY ARE VERY WELL SUITED TO GET THE COMMUNICATIONS OUT. 
          THEY'RE JUST BUILT FOR THAT. THAT'S PART OF THEIR SERVICE. THAT'S A LITTLE BIT DIFFERENT FROM WHAT WE DO ON AN EVERYDAY BASIS. 
          OKAY, WELL, OUR ACTION HERE IS TO RECOMMEND THIS BE CONSIDERED BY THE FULL BOARD. SO THERE'S, THERE'S A PERIOD OF TIME, IS THERE? I MEAN, I DON'T ACTUALLY SEE A RECOMMENDATION. I THINK THIS IS JUST INFORMATIONAL. 
          RIGHT. IT'S. WE'RE SUPPOSED TO RECOMMEND TO THE FULL BOARD ACCEPTANCE OF THIS PLAN. 
          YES. THIS IS JUST AN UPDATE, BUT THE ANNUITY PURCHASE CONSIDERATION IS JUST PRELIMINARY, JUST LIKE WHAT JONAH IS SAYING. SO, SO AT THIS POINT WE'RE NOT MAKING ANY DECISIONS ON THAT. 
          BUT THE MAIN GOAL IS TO JUST PROVIDE THIS UPDATE ON LIKE THE FUND STATUS, HOW THE LONG TERM OUTLOOK OF THESE PLANS ARE WHEN IT COMES TO LIKE, LIABILITIES AND HOW WE'RE FACTORING IN THE DIFFERENT THINGS THAT WE NEED TO LOOK INTO, SUCH AS THE CONTRIBUTIONS RECOMMENDED. 
          SO, BUT THE ANNUITY PURCHASE CONSIDERATIONS, VERY PRELIMINARY AT THIS POINT. SO WE HAVE TWO DIFFERENT THINGS HERE. 
          WE'RE REALLY ONLY RECOMMENDING THE REPORT. 
          CORRECT. THE OTHER THING IS GOING TO HAVE A LIFE OF ITS OWN. 
          CORRECT? YES. ALL RIGHT. 
          MUCH, MUCH BETTER. 
          OKAY. ALL RIGHT. I DON'T HAVE ANY MORE COMMENTS, SO I SEEK A MOTION. 
          SURE. I RECOMMEND THAT WE ACCEPT THE UPDATE FOR THE BOARD AND SEND IT TO THE BOARD. ALL RIGHT. 
          AND I'M SECOND. AND I THINK WE'VE GOT AYE BY INFERENCE. 
          ALL IN FAVOR SAY AYE. 
          OKAY. AND THEN WHEN, WHEN THIS, WHEN THIS GOES TO THE FULL BOARD, IT WILL BE THE SAME PRESENTATION WITH THE ANNUITIZATION THING TACKED ONTO IT. THAT IS THE INTENT. 
          BUT WE CAN CERTAINLY MODIFY IT. NO, I'M JUST, I'M JUST ASKING. OKAY. 
          ALL RIGHT, GREAT. SO WAIT, I WAIT, JUST TO CLARIFY. SO THIS, THIS REPORT IS GOING
TO THE BOARD. 
          RIGHT. BUT YOU'RE, YOU'RE SAYING THAT IT WOULD HAVE THIS ADDENDUM ON IT, WOULD HAVE THE REPORT, PLUS MORE INFORMATION ABOUT THE POSSIBLE CHANGE. I, I'M. 
          I'M ASSUMING THAT THE POWERPOINT WILL BE THE SAME FOR THE BOARD. THAT WHAT WE GOT HERE WITH, FOR INSTANCE, THAT SLIDE THERE? YEAH, THAT WOULD BE THE INTENT, I THINK, JUST TO INFORM THEM TO KAREN'S POINT, WHERE IT'S SORT OF A SUN SHINING OF A POTENTIAL OPPORTUNITY TO GAUGE THE BOARD'S INTEREST IN WHETHER OR NOT STAFF SHOULD PURSUE. OKAY. 
          ALL RIGHT. THANK YOU. ALL RIGHT. 
          YES. THANK YOU VERY MUCH. 
          IT'S AMAZING HOW INTERESTING 
          [Informational Items]
THOSE THINGS CAN BE. 
          IT REALLY IS. THANK YOU. 
          NUMBER FIVE. 
          ITEM NUMBER FIVE, WHICH IS AN INFORMATIONAL ITEM, IS OUR INTERNAL AUDIT MID YEAR REPORT. GOOD MORNING. DAVID SUMNER AT THE MANAGER. 
          THIS IS INFORMATION ITEM ONLY AND IT DESCRIBES ACTIVITIES THAT HAS BEEN COMPLETED DURING THE FIRST HALF 
          [01:00:01]
OF THE YEAR AND WOULD BRING TO YOUR ATTENTION SOME OF THE CHANGES THAT WERE MADE BY MANAGEMENT AS A CONSEQUENCE OF OTHER RECOMMENDATIONS. 
          THE DEFINITION OF AUDITING INFORMALLY IS COMPARING WHAT IS TO WHAT IS SUPPOSED TO BE. AUDITING IS CORNERSTONE OF GOOD PUBLIC SECTOR GOVERNANCE. 
          IT'S ESSENTIAL FOR UPHOLDING THE PRINCIPLES OF ACCOUNTABILITY, TRANSPARENCY, INTEGRITY, EQUALITY AND PROVIDING SERVICES TO THE PUBLIC ETHICALLY, EFFECTIVELY, ECONOMICALLY, WITHIN BOUNDARIES OF SPECIFIC PROGRAMS. THE BOARD OF DIRECTORS PROTECTION AND SUPPORT AND COOPERATION OF THE SENIOR MANAGEMENT ARE ESSENTIAL PREREQUISITES FOR EFFECTIVE INTERNAL AUDIT FUNCTION. AUDITORS MUST BE INDEPENDENT IN FACT AND APPEARANCE AND MAINTAIN THEIR OBJECTIVITY. 
          INDEPENDENCE MEANS FREEDOM FROM CONDITIONS THAT MAY IMPAIR THE ABILITY OF THE INTERNAL AUDIT FUNCTION TO CARRY OUT INTERNAL AUDIT RESPONSIBILITIES IN AN UNBIASED MANNER. 
          OBJECTIVITY IS AN UNBIASED MENTAL ATTITUDE THAT ALLOWS INTERNAL AUDITORS TO MAKE PROFESSIONAL JUDGMENT, FULFILL THEIR RESPONSIBILITIES AND ACHIEVE THE PURPOSE OF INTERNAL AUDIT FUNCTION WITHOUT COMPROMISE. 
          DURING THE SIX MONTHS OF THE SEVEN MONTHS OF THE YEAR, INTERNAL AUDIT HAS COMPLETED FOUR AUDIT PROJECTS, PREPARED PARK DISTRICT'S ANNUAL FINANCIAL REPORT TO A STATE CONTROLLER, HAS EXAMINED PARK DISTRICT'S ANNUAL COMPENSATION REPORT BEFORE IT'S SUBMITTED, COMPILED STATISTICAL SECTION OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT, PERFORMED BANKING ACTIVITIES AND MANAGED CASH FLOWS TO MEET PARK DISTRICT'S FINANCIAL OBLIGATIONS WHILE OPTIMIZING INTEREST EARNINGS, AND HAS PROVIDED TECHNICAL SUPPORT TO MANAGEMENT AND TRAINING TO STAFF AS NEEDED. 
          DO I HAVE THE THINGS ON THIS OR NOT? THE ATTACHMENT A. I WILL DESCRIBE THE FOUR OTHER PROJECTS THAT WERE COMPLETED AND INFORMATION WAS SUBMITTED TO MANAGEMENT. THE FIRST ONE WAS A REVIEW OF THE BOTTLED WATER PROGRAM. 
          DISTRICT IS OBLIGATED TO PROVIDE ADEQUATE DRINKING WATER TO STAFF WHILE THEY ARE ON DUTY, BOTH ACCORDING TO OSHA REQUIREMENTS AND DUE TO ITS OWN POLICY OF HEALTH INJURY PREVENTION PROGRAM. 
          BEYOND THAT, THERE ARE INSTANCES THAT
DISTRICT ALSO UNDERTAKES TO PROVIDE BULK WATER PURCHASES BECAUSE OF SOME EPIDEMIC OR SOMETHING LIKE THAT, AND THIS HAS OCCURRED. THE OTHER REASONS THAT DISTRICT PURCHASES BOTTLED WATER IS BECAUSE SOME OF THE RESIDENCES OF ARE NOT CONNECTED TO MUNICIPAL WATER SERVICES OR IN CASE OF THE E. 
          COLI INFESTATION AT PIEDMONT STABLES. ALTHOUGH DISTRICT WAS NOT OFFICIALLY RESPONSIBLE AND THE PLACE WAS RUN BY A CONCESSIONAIRE, STILL, DISTRICT UNDERTOOK PURCHASE OF BOTTLED PURCHASE OF BULK WATER TO PREVENT THE SPREAD OF THE DISEASE AND PROVIDE COMFORT FOR THE HORSES AND THE RIDERS THAT WERE USING THE FACILITY AT THAT POINT. SO THESE ARE BASIC REASONS.
PURCHASE OF BOTTLED WATER HAS STARTED AT THEIR VERY LOW LEVEL BY THE SUPERVISOR OF THE AREA TO BEGIN WITH. 
          AND THROUGHOUT THE YEARS IT HAS EXPANDED WHEREVER IT WAS NEEDED. AND THERE HAS NOT BEEN REALLY A FORMAL STRUCTURE TO SAY, OKAY, WHO IS ELIGIBLE, HOW OFTEN AND AT WHAT QUANTITY AND WHO WOULD BE DISTRIBUTED THESE TWO, AND SO ON. 
          SO CONTROL WAS SOMEWHAT LAX OR NON EXISTENT WHILE THE 
          [01:05:02]
SERVICES WERE NEEDED. SO AT SOME POINT MANAGEMENT REALIZING THAT THERE IS AN ISSUE REALLY THAT NEEDS TO BE LOOKED AT, ASKED INTERNAL AUDIT TO TAKE A LOOK AT THIS AND STAFF PERFORMED. 
          AND WE HAVE MADE A NUMBER OF RECOMMENDATIONS. 
          BASICALLY THERE IS REALLY NO WAY OF NOT PROVIDING BECAUSE ALSO IN EMERGENCY SITUATIONS, FOR INSTANCE, PUBLIC SAFETY MIGHT FACE AN EMERGENCY SITUATION. AND THEN OBVIOUSLY THEY PROVIDE PLASTIC WATER, BOTTLED WATERS TO PARK VISITORS THAT MAY NEED IT DURING A HOT DAY OR SOMETHING LIKE THAT. AND ALSO PUBLIC SAFETY IS REQUIRED TO HAVE SOME CAPACITY FOR MAINTAINING ADEQUATE AMOUNT OF WATER IN CASE OF EMERGENCY FOR OTHER ORGANIZATIONS AND ALL THAT. 
          SO COMBINATION OF ALL THIS HAS CAUSED THAT DISTRICT IS SPENDING CERTAIN AMOUNT OF MONEY ANNUALLY TO PURCHASE THIS. AND THROUGHOUT THE YEARS WHAT HAS HAPPENED WAS INDIVIDUAL SUPERVISORS HAD ENTERED INTO CONTRACT WITH BOTTLED WATER SUPPLIERS. 
          AND BOTTLED WATER SUPPLIERS WERE SEVERAL OF THEM, OBVIOUSLY DEPENDING ON THE LOCATION. 
          AND WHAT WAS HAPPENING WAS SOME OF THEM WERE PROVIDING WATER DISPENSERS AND THEY WERE CHARGING ON A MONTHLY BASIS FOR THESE WATER DISPENSERS EVEN IF THERE WAS NO WATER DELIVERY. 
          AND SOME OF THEM, SOME OF THE PARKS OF EVERY HAD GONE ON THEIR OWN AND PURCHASED WATER DISPENSERS FROM HOME DEPOT OR LOWE'S OR SOMETHING. AND BECAUSE THERE WAS CHANGEOVER IN STAFFING AND LEADERSHIP AND RETIREMENT AND NEW HIRES AND SO ON AND SO FORTH. 
          SO IT WAS CASES THAT WE WERE PAYING BOTH THE FEE TO THE WATER SUPPLYING COMPANY AS WELL AS INCURRING THE COST OF HAVING OUR OWN DISPENSERS AND SO ON. SO BASICALLY ALL THESE THINGS WERE DAYLIGHTED AND MANAGEMENT IS WORKING TO REMEDIATE THIS. AND THIS WAS THE BASIC REASONS THAT, YOU KNOW, IN SOME LOCATIONS, REGARDLESS OF HAVING MUNICIPAL WATER SERVICES, WE CONTINUE TO HAVE PURCHASE FOR WATER, BOTTLED WATER FOR THOSE LOCATIONS. 
          AND DETAIL OF ALL THESE WERE EXTRACTED FROM THE AUDIT REPORTS AND HAS BEEN PROVIDED IN ATTACHMENT. A SECOND AUDIT THAT WE COMPLETED FOR THE YEAR WAS REVIEW OF GRAZING LICENSES. EXCUSE ME, WHY DON'T WE. 
          I THINK IT'D BE EASIER AND MORE USEFUL TO US IF WE COMMENTED ON EACH ONE OF THESE. PLEASE TRY TO REMEMBER WHAT HAPPENED FOUR ITEMS AGO. SURE. 
          PLEASE. AT YOUR SERVICE. AND WE MAY NOT HAVE ANY COMMENTS ON SOME OF THEM, BUT MAYBE THIS ONE WE DO SO DO YOU HAVE ANY QUESTIONS OR. 
          LET'S JUST COMBINE IT ALL TOGETHER, COMMENTS, QUESTIONS, WHATEVER. SURE. 
          YEAH. 
          I DON'T ACTUALLY ON THIS ONE, I THINK IT MAKES SENSE TO. 
          FIRST OF ALL, CERTAINLY THERE ARE REASONS WHY SUPERVISORS ARE BUYING BOTTLED WATER. SO I'M GLAD YOU SPOKE ABOUT THAT. 
          I THINK IT IS IMPORTANT TO HAVE SOME TYPE OF POLICY AND GUIDANCE. 
          ESPECIALLY, YOU KNOW, THERE ARE SOME INSTANCES WHERE, AS YOU MENTIONED, THERE'S OVERLAP BETWEEN WATER PAYING A VENDOR AND PURCHASING OUR OWN. AND MAYBE IN SOME CASES THAT MIGHT BE NECESSARY. 
          BUT I THINK IT WOULD BE HELPFUL TO, TO MAKE IT CLEAR WHEN IT'S APPROPRIATE TO BUY BOTTLED WATER AND WHEN IT'S NOT. BECAUSE AT THE SAME TIME, YOU KNOW, CERTAINLY FOR SAFETY REASONS, WE WANT PEOPLE TO BE BUYING BOTTLED WATER. 
          AT THE SAME TIME, WE DO NOT WANT TO BE INCREASING PLASTIC INTO THE ENVIRONMENT. 
          SO THERE IS AN IMPORTANT, YOU KNOW, WE HAD TO LOOK AT BOTH. SO THANK YOU FOR DELVING INTO THAT. 
          YOU'RE WELCOME. 
          THANK YOU. YEAH, THIS ONE, I'M GLAD YOU DOVE INTO THIS BECAUSE WITH YOUR USUAL THOROUGHNESS YOU DISCOVERED A LOT OF THINGS THAT SHOULDN'T BE HAPPENING THAT AREN'T EFFICIENT. THANK YOU. 
          SO. ON YOUR CHART THERE WHERE YOU HAVE THE DIFFERENT ITEMS IN THAT ONE YOU HAD, YOU SAY A DRINKING WATER TEAM IS BEING FORMED. YEAH. 
          SO IS THAT THE GROUP? THAT'S AN EMPLOYEE GROUP, I GUESS, THAT WILL RECOMMEND A POLICY 
          [01:10:01]
LIKE WHAT YOU WERE SAYING. 
          HERE'S WHAT WE SHOULD BE DOING. ISSUE OR NOT BE DOING. 
          YEAH. AS YOU KNOW, THERE ARE MULTIPLE DEPARTMENTS THAT HAVE A ROLE IN THIS ACTIVITY AND MOST OF THE ACTIVITY AND EXPENSES AND ALL THAT ARE INCURRED BY THE OPERATIONS DEPARTMENT. 
          BUT BECAUSE OF THIS UNSTRUCTURED OR LAX DECISION MAKING PROCESS FOR ACQUISITION OF WATER AND SO ON, THERE HAS TO BE SOME KIND OF A CONSENSUS AND DISCUSSION BETWEEN PUBLIC SAFETY OPERATIONS AND FINANCE. 
          AND THIS GROUP BASICALLY IS FORMED TO ACHIEVE THAT OBJECTIVE THAT IS MULTI DEPARTMENTAL AND THEY BRING IN THE CASES AND THE EXPLANATIONS AND SO ON. AND THEN AFTER THEIR DISCUSSION THERE WOULD BE FORMATION OF THEIR POLICY AND PROCEDURE THAT WOULD BE GOVERNING THE PURCHASE AND USE OF BOTTLED WATER AND BALLPARK WATER AFTER THAT. I GUESS THE TRICK IS THE DECISION MAKERS ON BOTTLED WATER NEED TO KNOW THAT THERE IS THAT GOING FORWARD 10 YEARS FROM NOW. 
          LET'S JUST HOPE THAT INSTITUTIONAL KNOWLEDGE CARRIES FORWARD AND IT'S FOLLOWED RIGHT THEN. THERE'S A MENTION HERE ABOUT ESTABLISHING A SEPARATE OBJECT CODE TO TRACK DRINKING WATER. I'M SURPRISED. 
          YEAH, WELL, I THINK THAT'S A REALLY IMPORTANT THING TO DO IN ORDER TO REALLY SEE WHAT YOU'RE SPENDING. YOU CAN ROLL IT UP AND WE HAVE THAT NEW SYSTEM COMING ON BOARD. I GUESS THAT JUST MAKES A REFERENCE TO THAT, THAT STAFF WILL CONSIDER ESTABLISHING A SEPARATE. 
          I'M HAPPY TO GO ON RECORD SAYING IT OUGHT TO BE MORE THAN CONSIDER. I THINK THAT'S REALLY IMPORTANT. DEVELOP THE OBJECT CODE, IF IT'S AT ALL POSSIBLE. 
          I THINK IT IS. SO, YEAH, I WOULD, I WOULD, I WOULD ENCOURAGE THAT. ALL RIGHT, SO I DON'T THINK THERE'S ANYTHING ELSE ON THIS. 
          SO MOVE ON TO THEN LET'S MOVE ON TO THE NEXT. THE NEXT ONE. 
          THANK YOU. 
          REVIEW OF GRAZING LICENSES REVENUE. THIS IS THE THIRD TIME THAT GRAZING PROGRAM FOR THE DISTRICT WAS BEING REVIEWED BY INTERNAL STAFF. 
          AND THEY HAVE MADE QUITE CONSIDERABLE PROGRESS IN REVAMPING THE PROGRAM AND REALLY ESTABLISHING PROPER PROCEDURES AND GUIDELINES AND SO ON. 
          SO I WAS HAPPY TO SEE THAT THIS HAS PROGRESSED TO A GOOD LEVEL OF CONTROL AND ALL THAT. 
          WHAT HAPPENS IS DISTRICT PROVIDES OPPORTUNITY FOR GRAZERS TO GRAZE THEIR ANIMALS ON THE PARK DISTRICT PROPERTY. IT SERVES THE DISTRICT PURPOSES OF REVENUE GENERATING AND REDUCING COST OF FIRE PREVENTION AND ALSO ADEQUATELY PROTECTING THE SURROUNDING AREAS THAT ARE RESIDENTIAL. 
          SO IT'S A VERY BENEFICIAL PROGRAM OVERALL. THE WAY THAT THE COST OR FEE FOR GRAZING PROGRAM IS DETERMINED IS VERY FORMAL. AND PRICE OF THE MEAT AT JUNE OF EVERY YEAR IS THE BASIS OF HOW MUCH GRAZERS WOULD BE PAYING. 
          THERE IS A CONCEPT CALLED ANIMAL USE UNIT MEASURE, WHICH IS THE AMOUNT OF FORAGE THAT A COW MOST LIKELY WOULD BE CONSUMING WITHIN A MONTH. AND THEN DIFFERENT ANIMALS THAT ARE BEING GRAZED AT DIFFERENT STAGE OF LIFE HAVE LOWER OR HIGHER CONSUMPTION LEVEL TO THIS. 
          SO THERE ARE ANIMALS THAT ARE CONSIDERED ONE AUM. 
          THERE ARE ANIMALS AT A DIFFERENT AGE OR DIFFERENT TYPE THAT IS 0.75% AUM, AND SO ON AND SO FORTH. 
          RIGHT. 
          SO THE NUMBER OF DAYS THAT THE ANIMAL IS GRAZED PLUS THESE RATES AND SO ON DETERMINES HOW MUCH FEE OR RENT WOULD BE COLLECTED FROM GRAZERS. AND GRAZERS ARE PROFESSIONAL AND MOST OF THEM HAVE SIGNIFICANT EXPERIENCE OF WORKING WITH THE DISTRICT. SO AT THE CURRENT OR UP TO NOW, THEY ARE PROVIDING A LISTING OF EVERY MONTH THAT CONDENSES THE QUANTITY OF AUM THAT IS BEING CALCULATED BASED ON THE NUMBER OF THE ANIMALS THAT THEY HAVE HAD AND THE DAYS THAT THEY WERE IN AND SO ON. 
          [01:15:01]
AND THAT MONTHLY ROSTER IS BEING COMPILED INTO SIX MONTH SUMMARIES BY THE PARK DISTRICT STAFF, BY GRAZING PROGRAM STAFF, AND THEN BASED ON THAT, FINANCE ISSUES, INVOICES TO THE GRAZERS, AND THEN THE GRAZERS PAY THEIR FEE. 
          RIGHT. SO SOME. 
          WE NOTED THAT THERE ARE SOME MISCALCULATIONS IN THIS MONTHLY GRAZING INFORMATION THAT THEY HAD PROVIDED. 
          FOR INSTANCE, THEY HAD APPLIED WRONG RATES BASED ON THE TYPE OF THE ANIMAL OR IT WAS A LEAP YEAR AND THEY HAVE TAKEN 28 DAYS INSTEAD OF 29 DAYS AND MISCALCULATIONS LIKE THIS. 
          SO OVERALL ROUGHLY ABOUT $600 WAS UNDERPAID TO THE DISTRICT. 
          AND ALTHOUGH THAT'S NOT SIGNIFICANT, YOU THE ISSUE IS THAT BEYOND TRUSTING THE GRAZER, WE AS A OVERSEER OF THE PROGRAM, WE HAVE TO HAVE SOMEBODY WITH THEIR FOOT ON THE GROUND AND LOOKING ON AN OCCASIONAL BASIS TO MAKE SURE THAT THE GRAZERS REALLY REFLECT ACTUAL NUMBER AND SO ON THAT THEY ARE REPORTING. 
          THAT HASN'T BEEN DONE BECAUSE FOCUS OF THE STEWARDSHIP PROGRAM IS BASICALLY NATURAL MATTERS, NOT FINANCIAL ACTIVITIES. SO RECOMMENDATION WAS THAT THEY WOULD VERIFY AT THE TIME THAT THE ANIMALS ARE BROUGHT IN AND TAKEN OUT AND MAKE SURE THAT THE NUMBERS THAT THE GRAZERS ARE PROVIDING REALLY MATCHES THE ACTUAL EVENT THAT ARE OCCURRING ON THE GROUND. 
          AND. ONE OF THE OTHER ISSUES THAT CAME UP WAS THERE USED TO BE A. CONCESSIONAIRE THAT OPERATED ONE OF THE DISTRICT STAPLES. 
          AND BECAUSE HE HAD NOT PAID HIS FEE ON TIME, EVENTUALLY HE WAS EVICTED. 
          AND THEN HE HAD COME AND REAPPLIED FOR THE PARK DISTRICT AS A GRAZER. AND REGRETFULLY THE KNOWLEDGE WAS NOT THERE AT THE TIME AND THAT THIS IS NOT A GOOD CREDIT RISK PERSON. 
          AND HE WAS ALLOWED TO DO GRAZING AND HE HAD PRETTY MUCH PRACTICED SAME THING AS HE HAD DONE BEFORE WITH THE STABLE AND HAD NOT PAID ADEQUATE AMOUNT. THE INFORMATION AS A RECEIVABLE WAS RETAINED IN THE FINANCIAL SYSTEM OF THE DISTRICT WHILE IT WAS BAD DEBT UNCOLLECTIBLE. SO WE MADE TWO RECOMMENDATIONS. 
          ONE WAS THAT GRAZING PROGRAM APPLIES THE SAME PRINCIPLES OF VERIFICATION OF VIABILITY OF A GRAZER, JUST LIKE IT'S BEING DONE FOR THE CONCESSIONAIRES. AND WE REALLY WITHOUT BAD CREDIT PERSON FROM EVER BEING CONSIDERED AS A PERSON THAT WOULD DO BUSINESS WITH THE PARK DISTRICT AGAIN. 
          AND THE SECOND PART OF THE RECOMMENDATION WAS AT THIS POINT WE KNOW THAT THESE UNPAID FEES ARE ARE NOT RECOVERABLE, ARE NOT COLLECTIBLE. 
          THEREFORE THEY SHOULD NOT BE PRESENTED IN THE FINANCIAL
STATEMENTS ANYMORE. AND. 
          GRAZING AGREEMENTS UP TO NOW, OR GRAZING LICENSES UP TO NOW HAD A PROVISION FOR ASSESSING 1%, I BELIEVE LATE PAYMENT. 
          AND THIS PROVISION WAS TAKEN OUT OF THE MORE RECENT OR THE CURRENT UPDATE OF THE LICENSING AGREEMENT. 
          BUT FOR SO LONG AS IT WAS APPLICABLE, WE REALIZED THAT FINANCE DEPARTMENT STAFF HAD NOT RECOGNIZED THE LATE PAYMENT FEE. SO THE RECOMMENDATION WAS IF THERE IS SOME FEE DO TO THE DISTRICT, IT HAS TO BE ENFORCED AND COLLECTED. 
          THEN AS YOU KNOW, DISTRICT IS SELF INSURED. 
          AND AS SUCH WE ARE VERY CONSIDERATE OF AMOUNT OF RISK THAT THE DISTRICT ACCEPTS. 
          AND IF THERE IS A CONCESSIONAIRE OR A GRAZER OR WHOEVER THAT DOES BUSINESS WITH THE DISTRICT IN ORDER TO HAVE INCOME, THEN THEY WOULD HAVE TO PROVIDE PROOF OF THEIR INSURANCE TO THE PARK DISTRICT. 
          AND IN THE CASE OF THE GRAZERS, WE NOTED THAT ONLY AT INITIATION 
          [01:20:02]
OF THE AGREEMENT THEIR PROOF OF INSURANCE IS BEING REVIEWED BY THE RISK DEPARTMENT. AND ALTHOUGH IT'S A LOW RISK, THERE IS ALWAYS A POSSIBILITY THAT AN ANIMAL MIGHT ACT IMPROPERLY AND THIS WOULD BE A SUIT FOR THAT PURPOSE THAT THIS DANGEROUS ANIMAL WAS LEFT THERE AND SO ON. AND AS SUCH, WE ARE RECOMMENDING THAT RISK DEPARTMENT REVIEWS THE PROOF OF INSURANCE ON AN ONGOING BASIS. 
          SO LONG AS A GRAZER IS GRAZING, THEY WOULD HAVE TO PROVIDE PROOF OF INSURANCE ON AN ANNUAL BASIS. IF YOU HAVE. WE ALSO LOOKED AT THE PRIOR OTHER RECOMMENDATION TO SEE WHETHER THEY WERE IMPLEMENTED OR NOT. 
          TO SOME EXTENT, SOME WERE IMPLEMENTED AND SOMETHING LIKE THE VERIFICATION OF THE PROOF OF INSURANCE HAS REMAINED AS AN UNRESOLVED ISSUE. I'M AT YOUR SERVICE IF YOU HAVE QUESTIONS WITH REGARD TO THE. THIS. 
          ANY QUESTIONS OR COMMENTS. 
          OH, VERY CLEAR. THANK YOU.
THANK YOU FOR THIS ONE. I HAVE VERY LITTLE DOUBT THAT WE DON'T KNOW HOW TO MANAGE GRAZING. I THINK WE DO A GREAT JOB OF THAT. 
          JUST GO TO A BOUNDARY OF A PARK AND LOOK AT THE PRIVATE SIDE VERSUS OUR SIDE AND YOU CAN, CAN SEE THE DIFFERENCE. WE KNOW HOW TO DO IT, BUT THIS ADMIN PART OF IT SEEMS LIKE IT NEEDS SOME SHORING UP. AND MY QUESTION IS, HOW ARE WE GOING TO DO THAT? YOU KNOW, I MEAN, THESE ARE. 
          YOU'VE IDENTIFIED A NUMBER OF FUNCTIONS THAT ARE NOT DONE COMPLETELY ENOUGH OR NOT DONE AT ALL, YOU KNOW, AND I SEE MANAGEMENT AGREES WITH THE AUDIT RECOMMENDATIONS, I THINK ALL THE WAY THROUGH, THAT'S ONE THING. 
          BUT THE IMPLEMENTATION PART, IT DOES SORT OF ADDRESS THAT. 
          BUT I'M KIND OF WONDERING HOW ARE WE GOING TO. 
          WHO'S RESPONSIBLE FOR MAKING THAT HAPPEN? IS IT THE GRAZING PROGRAM FOLKS OR SOME OTHER PART OF THE DISTRICT? I BELIEVE THAT THE FIRST STEP OF THIS IS REALLY A KNOWLEDGE OF MANAGEMENT AND AUDIT PROVIDES THE INFORMATION, BRINGS IT TO THEIR ATTENTION, AND THEN AFTER THAT IT'S MANAGEMENT'S DECISION HOW THEY WOULD WANT TO HANDLE IT. AUDIT IS AN ADVISORY SERVICE ONLY AND WE HAVE NO ENFORCEMENT POWER WHATSOEVER, EXCEPT, YOU KNOW, MARKETING THE IDEA, IF YOU WILL. 
          BUT WE BELIEVE KNOWLEDGE OF THE MANAGEMENT AND THE LEADERSHIP OF THE DISTRICT WOULD SUFFICE IN ORDER TO MAKE THINGS HAPPEN. 
          LIKE WHEN THE INFORMATION IS BROUGHT INTO YOUR ATTENTION AND TO THE ATTENTION OF AGMS OF THE VARIOUS GROUPS, THEN THEY WILL TAKE ACTION AND IT WILL HAPPEN. 
          BUT REGRETFULLY, MANY OF THE ISSUES, AS YOU KNOW, IS HAVING OVERLAP FROM ONE DEPARTMENT TO ANOTHER DEPARTMENT AND SO ON. 
          IN OTHER WORDS, IS MULTI DEPARTMENT INTERACTION THAT PROGRAM WOULD SIT INTO. 
          RIGHT. AND AS SUCH, YOU KNOW, IT REQUIRES THE PARTNERSHIP OR AGREEMENT OF SEVERAL AGMS. SO THAT IS WHY REALLY INTERNAL AUDIT SHOULD BE INDEPENDENT AND SHOULD BE ALLOWED TO PERFORM AND SHOULD HAVE THE PROTECTION OF THE BOARD AND PROTECT PROTECTION OF THE MANAGEMENT AND COOPERATION OF THE MANAGEMENT AND SO ON. 
          THE WHOLE PURPOSE WOULD BE ACHIEVED IF COMBINATION OF THESE ELEMENTS ARE INTERACTING WITH EACH OTHER AND EXIST. 
          NO, I UNDERSTAND WHERE YOUR
RESPONSIBILITY ENDS AT A CERTAIN POINT, BUT THEN IT SHIFTS OVER TO OTHERS. I JUST HAVE TO FEEL COMFORTABLE THAT. 
          THAT THESE ARE GOING TO BE TAKEN SERIOUSLY AND THAT WE DO. WE. WE DO THAT, WE DO THEM. 
          SO THAT'S JUST, YOU KNOW, I WANT TO MAKE THAT CLEAR. 
          THANK YOU. ALL RIGHT, SO MOVING ON TO THE NEXT ONE. 
          THE THIRD REPORT WAS WITH REGARD TO BOTANIC GARDEN CASH HANDLING PRACTICES. BOTANIC GARDEN IS REALLY A GEM. AND STAFF THAT ARE WORKING THERE ARE HIGHLY INFORMED AND VERY PERSONALLY INVOLVED AND MOTIVATED IN DOING THE BEST THEY CAN. 
          AND IT'S REALLY A REFRESHING THING TO SEE THAT HOW PARK DISTRICT IS BEING PRESENTED TO THE PUBLIC. I REALLY APPRECIATE THE WORK THAT THEY DO WITH REGARD TO THEIR 
          [01:25:03]
ENVIRONMENTAL ACTIVITIES AND THE THINGS THAT ARE THEY ARE PROVIDING TO THE PUBLIC AND ATTRACTING THE GOODWILL AND INTEREST OF THE PEOPLE THAT ARE INTO BOTANICAL ACTIVITIES AND SO ON. BUT BOTANIC GARDEN NOT ONLY PLAYS THE ROLE OF REALLY A GOODWILL AMBASSADOR FOR THE DISTRICT, IT ALSO CREATES SOME REVENUE, RIGHT? THE REVENUE THAT THEY ARE CREATING IS IN TWO SEGMENTS. 
          ONE PART IS BEING ABSORBED BY THE PARK DISTRICT AND ONE PART IS BEING ABSORBED BY THE REGIONAL PARK FOUNDATION. SO DONATIONS THAT THEY ARE RECEIVING AND AMOUNT OF REVENUE THAT IS GENERATED BY THE PLANT SALES AND SO ON ARE BEING GIVEN TO REGIONAL PARK FOUNDATION. 
          WHILE THE FEES THAT THEY ARE COLLECTING FOR RESERVATION OF THE WEDDING SPACES AND SO ON OR TOURS IS BEING COLLECTED BY THE PARK DISTRICT. 
          SO THERE IS A DISTINCTION. 
          EVENTUALLY WHATEVER THAT THEY HAVE GENERATED AS DONATION IS BEING GIVEN BACK BY THE REGIONAL PARK FOUNDATION TO THEM AS GRANT. SO THIS IS REALLY WHAT IS HAPPENING. 
          AND BECAUSE THEY HAVE A UNIQUE KIND OF ACTIVITY, THEY SELL ONLY ONE TYPE OF MERCHANDISE AND SO ON. 
          THEY HAD HAD SOME FLEXIBILITY AS TO HOW THEY WANT TO PROCESS THE PAYMENTS BY THE PEOPLE THAT MAKE DONATION OR BUY PLANS FROM THEM DURING THE PLANT SALES, ANNUAL PLANT SALES. AND THEY HAD DECIDED THAT THEY WOULD BE USING INSTEAD OF DISTRICT SYSTEM OF PROCESSING CREDIT CARD PAYMENTS, THEY HAD DECIDED THAT THEY WILL GO AND USE PARTICULAR SERVICE PROVIDER CALLED SQUARE TO PROCESS THEIR CREDIT CARD COLLECTIONS AND CONVERT THAT TO CASH. 
          SO PARK DISTRICT WAS NOT INITIALLY INFORMED ABOUT THAT. AND PROBABLY SEVERAL YEARS THEY HAD OPERATED IN SUCH MANNER. AND THEN REVENUE DEPARTMENT DECIDED THAT THEY WANT TO KNOW WHETHER THERE IS REALLY ADEQUATE CONTROL OVER THE CREDIT CARD PROCESSING AND DONATIONS THAT ARE BEING MADE TO THE BOTANIC GARDEN. 
          AND THAT'S WHY WE LOOKED AT THIS OPERATION. AND ALL IN ALL, THEY WANTED TO SEE IF THIS WE CAN ALSO MOVE AND TAKE ADVANTAGE OF ESQUIRE AS A SERVICE PROVIDER FOR CREDIT CARD PROCESSING. 
          AS WE LOOK AT IT, WE BELIEVE THAT THIS IS VERY, VERY WELL RUN ACTIVITY. 
          BUT IT'S UNIQUE AND A SPECIFIC PROGRAM ONLY. IT'S NOT A FIT FOR THE DISTRICT. 
          AND ALSO THE FEE THAT ESCROW CHARGES REACHES ALMOST TO 3.8% OF OVERALL COLLECTIONS. AND THAT'S A VERY HIGH FEE. IF YOU LOOK AT THE ACTIVITY THAT OTHER PARK UNITS PERFORM AND THEY RECEIVE CREDIT CARD, WE PAY A MUCH LOWER FEE FOR PROCESSING OF THAT CREDIT CARD. 
          SO WE DO NOT REALLY CONSIDER THAT THIS COULD BE A WIDESPREAD USAGE OF A SQUARE WITHIN THE PARK DISTRICT. 
          SO. THERE ARE A FEW MINOR ISSUES WITH REGARD TO BOTANIC GARDEN. 
          ONE WAS THEY HAD TWO BOXES FOR TWO DONATIONS AT THE LOCATION. AND WE SAID THAT CONSOLIDATE THAT INTO ONE. SECOND WAS THAT TRANSFER OF MONEY FROM THE BOTANIC GARDEN. 
          TRANSFER OF DONATIONS FROM BOTANIC GARDEN TO THE REGIONAL PARK FOUNDATION DOES NOT OCCUR ON A REGULAR BASIS. SO CONSIDERING THAT THIS IS AN ISOLATED PLACE, IT'S REALLY BENEFICIAL FOR BOTH SAFETY OF THE STAFF AND ALSO SO RECOGNITION OF THE REVENUE AND DEPOSIT OF THE MONIES INTO THE REGIONAL PARK FOUNDATION TO DO IT ON A REGULAR BASIS, ON A MONTHLY BASIS. I HAD A
QUESTION ABOUT THAT PLEASE. 
          BECAUSE THAT JUMPED OUT AT ME. SO THEY'RE NOT THE ONLY ORGANIZATION IN THE PARK DISTRICT THAT GETS DONATIONS. SO HOW ARE THEY GENERALLY HELD? IS IT THE RESPONSIBILITY OF THE STAFF WORKING THERE TO BRING IT PHYSICALLY SOMEWHERE, OR IS THERE SOMEONE THAT GOES AND 
          [01:30:01]
COLLECTS IT FROM VARIOUS SITES? I'M JUST. 
          BECAUSE I AGREE THERE'S A SAFETY ISSUE THERE. ALL THE PARKS ARE ALLOWED TO ACCEPT DONATIONS, BUT AT THE PARKS WE HAVE POS SYSTEM, POINT OF SALE SYSTEM. SO THE DONATION THAT IS RECEIVED IS RECOGNIZED AT THAT POINT THAT THAT DONATION IS BEING DEPOSITED. 
          BUT IT'S REGIONAL PARKS FOUNDATION'S MONEY. SO THERE IS REALLY NO TRANSFER OF MONEY AT THAT POINT. 
          BOTANIC GARDEN IS A UNIQUE OPERATION. 
          THEY. I CAN PROBABLY HELP CLARIFY A LITTLE BIT TOO. 
          THE PARK FOUNDATION IS THIS FISCAL SPONSOR FOR THE FRIENDS BECAUSE THEY ARE NOT A 501. 
          SO THEY CAN ONLY IF THEY WANT TO HAVE THE MONEY THAT THEY GET DONATED, BE TAX EXEMPT. 
          THEY HAVE TO USE A FISCAL SPONSOR. 
          THAT MONEY IS STILL THEIR MONEY THAT THEY COLLECT. 
          THE REGIONAL PARK FOUNDATION IS JUST THE NONPROFIT WHO'S LENDING THEIR NONPROFIT STATUS FOR THE PURPOSE RIGHT OF THE COLLECTION. AND I'M NOT SURE, I MEAN, WE CAN GET BACK TO YOU ON OTHER PARKS ACCEPTING DONATIONS. I DON'T BELIEVE THAT WE HAVE THAT GOING ON FOR THE MOST PART. 
          YEAH. SO I UNDERSTAND ABOUT IT BEING SPONSORED BY THE FOUNDATION AND THE MONEY GOES TO THE FOUNDATION. MY QUESTION, I THOUGHT THAT THERE USED TO BE AT LEAST A DONATION BOX AT THE TILDEN EEC. 
          MAYBE IT'S NOT THERE ANYMORE, BUT IT WAS THERE RECENTLY. I WAS JUST TRYING TO CLARIFY THAT THE MONEY REALLY SHOULD BE KEPT SEPARATELY FROM THE MONEY THAT IS FUNDRAISED BY THE FOUNDATION. IT'S NOT THEIR FUNDRAISING ACTIVITY, IT'S THE FRIENDS. 
          THEY JUST HAVE THIS JOB OF BEING THE FISCAL SPONSOR AND MAKING SURE THAT IT. SO IT COULD BE THAT MONEY COMES TO THE EEC. WE CAN LOOK INTO WHERE EXACTLY THAT GOES, BUT I DON'T THINK THAT UNLESS IT SAYS REGIONAL PARKS FOUNDATION, THAT WOULDN'T. 
          RIGHT. MY CONCERN WAS MORE ABOUT THE PHYSICAL ACCUMULATION OF CASH AND GETTING IT SAFELY TO THE RIGHT PLACE, YOU KNOW, WHETHER THAT'S THE FOUNDATION OR IN THE CASE OF THE BOTANIC GARDENS OR EAST BAY PARKS, MAYBE WITH SOME OTHER, YOU KNOW, MAYBE LIKE TILL THE NATURE. I DON'T KNOW WHETHER THEY EASILY EVEN STILL HAVE A BOX, BUT I FEEL LIKE THEY DID FAIRLY RECENTLY AND WHERE THAT MONEY WOULD GO. 
          BUT IT'S MORE THE PHYSICAL HANDLING OF THE CASH AND HAVING STAFF SAFELY GET IT TO THE RIGHT PLACE, WHETHER IT'S THE STAFF THAT ACTUALLY WORKS ON SITE OR WHETHER IT'S SOMEONE WHO COMES AND COLLECTS IT FOR THEM. SO THAT'S MY QUESTION. I CAN'T
EXPLAIN THAT. 
          IN THE CASE OF THE BOTANIC GARDEN, WHATEVER THAT THEY COLLECT AS DONATION IS BEING SEPARATELY ACCOUNTED FOR, TWO STAFF COUNTED AND THEN THEY PREPARE A INFORMATION SHEET THAT INDICATES HOW MUCH THEY HAVE COLLECTED ON A REGULAR BASIS. THEY ARE SUPPOSED TO TAKE THAT TO REGIONAL PARK FOUNDATION AND THEY DO THAT ON A SPORADIC BASIS. AT REGIONAL PARK FOUNDATION, WHEN THEY RECEIVE THE THIS MONEY, THEY MATCH IT AGAINST THE LIST THAT THE BOTANIC GARDEN PROVIDES, THEY DOUBLE COUNT THAT AND THEN THEY DEPOSIT IT TO THEIR BANK ACCOUNT. 
          SO THERE IS REALLY NO COMMINGLING OF DONATIONS WITH THE MONIES THAT PARK DISTRICT RECEIVES ON ITS OWN. SO STAFF IS RESPONSIBLE FOR. YES, THEY HANDLE IT MANUALLY, CARRYING THE MONEY FROM BOTANIC GARDEN TO THE FOUNDATION HEADQUARTERS. 
          YES, THAT IS HOW IT'S BEING DONE. OKAY. THAT'S HOW IT'S BEING DONE. 
          WELL, DEPENDING ON THE AMOUNTS OF MONEY WE'RE TALKING ABOUT. I DON'T KNOW, BUT THAT. THAT MIGHT. 
          THAT'S A LITTLE BIT CONCERNING TO ME. JUST FOR STAFF SAFETY. YEAH, BUT THIS HAS BEEN THE WAY THAT IT HAS BEEN DONE. 
          ALWAYS THERE. SO. YEAH, YEAH. 
          BUT TO ME, I FEEL LIKE THERE'S. AND AGAIN, I DON'T KNOW THE AMOUNTS OR WHEN IT HAPPENS. BUT IT JUST MAKES ME NERVOUS. 
          UNCOMFORTABLE. RIGHT. I UNDERSTAND THAT OUR STAFF IS SORT OF PLAYING THE ROLE OF, YOU KNOW, FUNDS COURIER. 
          SO THAT'S. THAT'S WHAT. 
          THAT'S MY QUESTION. 
          THAT'S WHAT I'M ASKING ABOUT. 
          AND WE DON'T HAVE TO SOLVE IT HERE. I'M JUST SAYING THAT, THAT. 
          AND IT'S NOT SO MUCH, YOU KNOW, WHERE IT GOES OR, YOU KNOW, THE FACT THAT IT'S NOT. I MEAN, YES, ALL THOSE ARE IMPORTANT ISSUES. YES. 
          IT'S NOT COMMINGLED, IT'S REPORTED, ET CETERA. 
          BUT I'M JUST TALKING ABOUT, YOU KNOW, THE SAFETY OF OUR STAFF, YOU KNOW, TAKING HOLDING MONEY AND THEN TAKE. HAVING TO DRIVE IT TO THE FOUNDATION OR WHEREVER ELSE THAT JUST WORKS. 
          THERE HAS BEEN BUSINESS 
          [01:35:01]
SERVICES AND OPERATIONS HAVE. 
          HAVE GIVEN PRESENTATIONS RECENTLY TO DIFFERENT COMMITTEES AND I'M NOT SURE WHICH ONES, I CAN'T RECALL, BUT ABOUT CASH HANDLING AND THE MOVEMENT THAT THE DISTRICT HAS BEEN MAKING TO. 
          TOWARD ELECTRONIC PAYMENT SYSTEMS. SO I DON'T KNOW IF TIFFANY WANTS TO ADDRESS YOUR QUESTION, BUT. HI, GOOD MORNING. I'M TIFFANY MARGALESI. 
          I'M THE ACTING ASSISTANT FINANCE OFFICER. AND I APPRECIATE DAVE'S INTERNAL
AUDIT REPORTS. IT ALWAYS GIVES US A GOOD ROADMAP TO START WITH AS MANAGEMENT FOR IMPLEMENTATION. 
          SO WE ALREADY HAVE A BOTANIC GARDEN AUDIT IMPLEMENTATION TEAM WITH INTERPRETATION AND RECREATION, PARK OPERATIONS AND THE FOUNDATION, WHO IS THE FISCAL SPONSOR. 
          AND THEN AT OPERATIONS COMMITTEE THIS AFTERNOON, I HAVE AN UPDATE ON THE FEE COLLECTION MODERNIZATION PROJECT. AND THE TOPIC OF THE COLLECTION BOXES IS DEFINITELY ONE WE'VE BEEN TAKING A LOOK AT. 
          GREAT. I'LL BE IN THAT COMMITTEE MEETING TOO, SO THANK YOU. OKAY. 
          THANK YOU. AND I DO, WHILE I HAVE THE FLOOR, I DID ALSO WANT TO ECHO WHAT YOU SAID EARLIER ABOUT THE STAFF AT THE BOTANIC GARDEN. THEY REALLY DO. 
          THE STAFF AND THE VOLUNTEERS GO ABOVE AND BEYOND TO MAKE THAT A VERY SPECIAL PLACE. 
          THANK YOU. YES. 
          AND I KNOW THEY WORK VERY HARD AND SO. AND I SAW THAT THEY WERE GOING TO TRY TO IMPLEMENT THESE. THE RECOMMENDATION TO DELIVER THE
MONEY MONTHLY. 
          AND THAT'S PART OF WHY I WAS LIKE, WELL, IS THAT CHALLENGING FOR THEM TO DO? IS THAT REALLY THE RIGHT ROLE FOR THEM TO HAVE TO DO THAT? SO ANYWAY, THOSE WERE JUST MY, YOU KNOW WHAT I WAS THINKING ABOUT AGAIN? WE DON'T HAVE TO SOLVE THAT IN THIS MEETING TODAY, BUT THAT'S WHAT I WAS THINKING ABOUT. 
          TO GIVE YOU SOME COMFORT WITH REGARDS TO THIS ISSUE, I ASSURE YOU THAT THEY HAVE SPIKES OF HAVING SUFFICIENT AMOUNT OF MONEY ONLY WHEN THEY HAVE THE ANNUAL SALES. AND FOR ANNUAL SALES, THEY HAVE. 
          I HAD DISCUSSED THE ISSUE WITH THE BOTANIC GARDEN MANAGER. HE SAID THAT THEY HAVE A RETIRED BERKELEY POLICE OFFICER THAT IS GUARD THERE AS A VOLUNTEER. AND THEN THEY HAVE TWO BANKERS THAT SIT IN THE ROOM AND RECOUNT AND SO ON FOR THE MONEY. 
          AND THEY HAD REALLY METICULOUS WAYS OF IDENTIFYING DIFFERENT PLANS AND ALL THAT. AND THE MONEY, I BELIEVE, IS BEING TRANSFERRED WITHIN TWO DAYS WHEN IT REACHES FOR THESE EVENTS. BUT FOR THE REGULAR PAYMENT THAT IS HAPPENING, THAT SOMEBODY COMES IN AND THEY LOOK AT THE PLACE AND THEY WOULD WANT TO SHOW SOME APPRECIATION, DONATING SOME MONEY AND ALL THAT. 
          THERE IS AN OPEN BOX, VISIBLE BOX THERE THAT IS ON THE TABLE AND THAT DOES NOT REALLY GATHER TOO MUCH MONEY. 
          BUT STILL, FOR US, JUST LIKE YOURSELF WAS A CONCERN THAT, HEY, THIS IS VISIBLE, IT'S A VERY ISOLATED LOCATION AND SOMEBODY, GOD FORBID, MIGHT ABUSE THE OPPORTUNITY. 
          SO THAT WAS THE REASON FOR THE RECOMMENDATION. 
          RIGHT. WELL, THANK YOU. 
          THANKS VERY MUCH. 
          AND YES, THE FRIENDS GROUP OF THE BOTANIC GARDEN, I'M NOT SURPRISED THAT THEY HAVE TWO BANKERS AND A RETIRED POLICEMAN VOLUNTEERING AND TO HELP WITH THIS WORK ALONG WITH ALL THE OTHER AMAZING VOLUNTEERS. SO THANK YOU, THAT'S REASSURING. THANK YOU. 
          SO, AS I SAID, WE DID NOT RECOMMEND A SQUARE FOR BEING IMPLEMENTED BEYOND THAT SPACE. AND THE OTHER THING THAT WE NOTICED WAS THAT BOTANIC GARDEN DOES NOT HAVE WRITTEN PROCEDURES, IF YOU WILL, DESK MANUALS FOR THE STAFF. AND SUGGESTED THAT FOR THE BOTANIC GARDEN MANAGER TO ESTABLISH THIS, THAT WOULD SERVE A COUPLE OF PURPOSES. 
          ONE IS, YOU KNOW, IF THERE IS GENERATIONAL CHANGE, THEN THE REMAINDER OF THE STAFF WOULD KNOW WHAT TO DO AND HOW TO DO IT. 
          SECOND, IT DEFINES REALLY THE RELATIONSHIP BETWEEN THE VOLUNTEERS AND THE REGULAR STAFF AND, YOU KNOW, SOLVE SOME OF THE PROBLEMS THAT THEY MIGHT BE FACING WHEN THEY ARE PERFORMING THEIR ASSIGNED DUTY OR THEIR CHOSEN VOLUNTARY ACTIVITIES AND SO ON. SO IT WOULD BE BETTER IF THEY PREPARE A WRITTEN DESK PROCEDURE, PROGRAM OR MANUAL FOR THIS THING. 
          THE OTHER THING THAT WE NOTICED WAS BOTANIC GARDEN MANAGER, IN ORDER TO FULFILL AND TO FACILITATE THE ANNUAL PLANT SALES EVENT, HAD USED HIS OWN MONEY AS A STARTUP MONEY 
          [01:40:05]
FOR GIVING CASH TO THE PEOPLE FOR EXCHANGE AND SO ON. AND PROBABLY THAT WAS, YOU KNOW, REALLY A GOODWILL GESTURE AGAIN. BUT HE MIGHT HAVE NOT BEEN INFORMED THAT THE PARK DISTRICT HAS A SPECIFIC STARTING CASH FUND. 
          AND ALL THEY HAVE TO DO IS TO ASK FINANCE DEPARTMENT AGAIN, WE DON'T WANT TO INTERFERE PERSONAL MONEY AND DONATIONS. 
          AND THAT WAS THE PURPOSE OF THIS. AND THE LAST THING WAS. 
          THERE IS SALES TAX AT THE VERY SPECIFIC DETAIL FOR ACTIVITIES THAT BOTANIC GARDEN DOES. THERE ARE SEEDS THAT ARE TAXABLE OR NON TAXABLE, THERE ARE PLANTS THAT ARE TAXABLE AND NON TAXABLE. AND ALL THAT BUT THEY HAD CONSIDERED THEIR ENTIRE BOTANIC GARDEN ANNUAL SALE SALES IF AS A TAXABLE AMOUNT. 
          AND WE BELIEVE THAT THEY HAVE MOST LIKELY OVERPAID THE SALES TAX IN THIS MANNER. 
          AND THE SUGGESTION IS THAT THEY WOULD HAVE TO IDENTIFY WHAT PLANS ARE TAXABLE AND WHAT PLANS ARE EXEMPT AND THEN AFTER THAT YOU KNOW, REALLY PAY SALES TAX ONLY FOR WHAT IS APPLICABLE. 
          AGAIN, YOU KNOW,
IT REQUIRES KNOWLEDGE OF BHUTANI AS WELL AS KNOWLEDGE OF THE REGULATIONS OF FRANCHISE TAX FORM AND ALL THAT. 
          SO THEY DIDN'T HAVE IT. BUT WE BELIEVE THAT THIS IS NOT ACCURATE. IT WAS NOT ACCURATE. 
          SO THESE WERE THE AUDITS THAT WAS DONE. THERE WAS ONE AUDIT OF MEASURE WWE AWARD THAT WAS SUBMITTED FOR FINAL PAYMENT AND THERE WAS REALLY NOTHING OUT OF ORDINARY REPORTABLE IN THAT REGARD. SO THESE WERE THE FOUR AUDITS THAT WERE COMPLETED FOR THE FIRST YEAR. 
          ALL RIGHT, I THINK WE'RE, WE MADE IT THROUGH THAT ONE. CAN YOU GO TO NUMBER FOUR NOW ON THE. 
          IN NUMBER FOUR? THERE'S ANOTHER ONE AFTER THAT, RIGHT? YEAH, THAT WAS THE MEASURE WW BASICALLY DISTRICT HAS A VERY WELL STRUCTURED SYSTEM FOR MEASURE WW GRANTS AND USUALLY WE DON'T FACE ANY ISSUE. 
          YOU KNOW, THROUGHOUT THE YEARS THAT I HAVE BEEN HERE WE HAVE ONLY ONE OR TWO INSTANCES THAT THE GRANTEE HAD NOT ADEQUATELY COMPLIED WITH THE REQUIREMENTS. IN ALL OTHER CASES THERE HAS BEEN ALMOST 100% FULL COMPLIANCE. 
          SO THERE WAS NOT AN ISSUE REPORT. 
          WELL, I APPRECIATE THE WORK THAT WAS BEING DONE IN THAT REGARD. ALL RIGHT, ANY QUESTIONS OR COMMENTS HERE ON THAT ONE? THANK YOU VERY MUCH. WE ALWAYS APPRECIATE YOUR THOROUGHNESS
AND YOUR RECOMMENDATIONS. 
          THANK YOU. THANK YOU VERY MUCH. THANK YOU FOR THE TIME THEY ARE GIVEN. 
          THANKS A LOT. HAVE A WONDERFUL DAY. THANKS A LOT. 
          YEAH. YOU KNOW WHAT? I THINK I WANT TO TAKE A FIVE MINUTE BREAK HERE BEFORE WE GO INTO THE NEXT ONE. YEAH, YEAH. 
          SO WE'LL COME BACK AT 12:20. 
          ALL RIGHT. SO THE NEXT, THE NEXT, ARE WE READY FOR THE NEXT ITEM? WE ARE, YEAH. 
          OKAY. OH, OKAY, GOT IT. THE NEXT ITEM IS ITEM 5B, THE PROPERTY TAX FORECAST. 
          PERFECT. THANK YOU AND GOOD AFTERNOON. I'M JONAH NICHOLAS, THE ASSOCIATE OR THE ASSISTANT GENERAL MANAGER OF FINANCE AND MANAGEMENT SYSTEMS. AND I'M GOING TO WALK THROUGH THE UPDATED PROPERTY TAX FORECAST. WE RECEIVED THIS INFORMATION FROM A THIRD PARTY CONSULTANT. YOU CAN SEE IT ON THE OPENING SLIDE THERE. 
          THE BEACON ECONOMICS. WE'LL WALK THROUGH THIS. IT'S A SORT OF A CONSOLIDATION OF A 35 PAGE REPORT THAT
YOU'LL SEE WITHIN ATTACHMENT A IN YOUR PACKET. 
          AND REALLY THE ONUS OF THE REPORT IS TO GET TO WHAT THE FORECAST MEANS FOR THE DEVELOPMENT OF OUR 27 BUDGET. SO 
          [01:45:05]
IN THE REPORT, BEACON STARTS WITH A BROADER ECONOMIC ENVIRONMENT. LOOK, AND STARTING WITH NATIONALLY, THE ECONOMY IS CONTINUING TO GROW AT A MODERATE PACE AND CONSUMER SPENDING AND LABOR MARKETS HAVE REMAINED RELATIVELY RESILIENT. 
          THERE'S NOT SIGNIFICANT DOWNTURNS OR THE ECONOMY CERTAINLY, CERTAINLY ISN'T ON FIRE OR ON CRUISE CONTROL, BUT HAS BEEN RESILIENT AND IT WILL CONTINUE TO BE ACCORDING TO THEIR FORECAST. AND THEN FOR CALIFORNIA, THE EMPLOYMENT PICTURE REMAINS RELATIVELY STRONG. JOB GROWTH HAS THOUGH BEEN INCREASINGLY CONCENTRATED WITHIN THE HEALTHCARE INDUSTRY AND HOUSING AND AFFORDABILITY AND INTEREST RATES ARE CONTINUING TO CONSTRAIN GROWTH. 
          GROWTH ON PAGE 13 OF THE ATTACHMENT A THE FULL BEACON REPORT. IT'LL GO A LITTLE BIT INTO THE HEALTHCARE SPIKE REALLY AND HOW THAT'S CARRYING A LOT OF THE WATER FOR THE JOB GROWTH WITHIN CALIFORNIA. AND THEN LOCALLY WE'RE SEEING SOME ADDITIONAL SOFTNESS. 
          EMPLOYMENT GROWTH IN THE EAST BAY HAS BEEN RELATIVELY FLAT. HOUSING AND SALE PRICES HAVE SOFTENED AND HIGHER MORTGAGE RATES CONTINUE TO LIMIT TURNOVER. AND
TURNOVER IS ESPECIALLY IMPORTANT FOR PROPERTY TAXES. 
          WITH THE PROP 13 YOU COULD HAVE A HOUSE THAT WAS BOUGHT IN THE 1980S. IF IT FINALLY ACTUALLY GETS SOLD, THE PROPERTY TAX RATE ON THAT WILL GO UP EXPONENTIALLY. SO PEOPLE SEEM TO BE HOLDING AT THE MOMENT. 
          THIS IS ALL IMPORTANT TO US BECAUSE THESE HOUSING MARKET CONDITIONS AS YOU, YOU KNOW, ULTIMATELY AFFECT THE AV GROWTH AND REALLY ARE ULTIMATELY OUR PROPERTY TAX REVENUE. SO THIS TABLE ON SLIDE THREE IS REALLY AGGREGATED DATA THAT BEACON IS PROVIDING OF CONTRA COSTA AND ALAMEDA COUNTY. AND IT'S REALLY WHERE WE CAN SEE THE EFFECT OF THAT ASSESSED VALUE FORECAST. 
          SO ACTUAL ASSESSED VALUE GREW 3.83% IN 2526, 3.3% IN 2627. 
          AND THEN BEACON IS FORECASTING A SLIGHTLY LOWER GROWTH OF 3.14% FOR THE 2728 YEAR. AND THIS IS FOLLOWED IN THE OUT YEARS BY GROWTH OF ROUGHLY 3% IN ANNUALLY FOR THE NEXT SEVERAL YEARS. 
          THE FIVE YEAR FORECAST IS 3.26%. YOU CAN SEE THAT AT THE BOTTOM OF THE TABLE. 
          AND THAT'S A SIGNIFICANT MODERATION FROM THE PREVIOUS FIVE YEAR PERIOD. 
          ALSO SHOWN ON THE CHART WHERE YOU CAN SEE ASSESSED VALUES GREW AT AN AVERAGE ANNUAL RATE OF 5.9%. SO I THINK THE IMPORTANT TAKEAWAY HERE IS THAT ASSESSED VALUES ARE NOT DECLINING. THEY AREN'T. 
          BEACON IS CONTINUING TO FORECAST GROWTH, BUT THEY'RE JUST EXPECTING THAT GROWTH TO OCCUR AT A RATE CONSIDERABLY LOWER THAN WE'VE EXPERIENCED OVER THE LAST SEVERAL YEARS. 
          AND THEN FACTORS THAT ARE AFFECTING OUR VENDOR VALUE, ASSESSED VALUE GROWTH, REALLY SEVERAL THINGS THAT ARE DRIVING THE MODERATION THAT WE'RE SEEING FOR THE RESIDENTIAL SIDE MENTIONED ALREADY, THE ELEVATED MORTGAGE RATES HAVE REDUCED THE ACTIVITY WITHIN THE SALES MARKET. 
          HOMES ARE TAKING LONGER TO SELL AND INVENTORY HAS BEEN INCREASING. 
          CONSTRUCTION IS SOMEWHAT MIXED. NON RESIDENTIAL CONSTRUCTION INCREASED SIGNIFICANTLY WHILE RESIDENTIAL ACTIVITY REMAINS RELATIVELY WEAK. AND THAT'S PARTICULARLY IN ALAMEDA COUNTY. 
          AND THEN PUTTING ALL THAT TOGETHER, BEACON EXPECTS ASSESSED VALUE GROWTH TO REMAIN MODERATE IN THE NEAR TERM AROUND 3% AND THEN GRADUALLY STRENGTHEN TOWARD THE END OF THE FIVE YEAR FORECAST. 
          SO THAT BRINGS US TO HOW WE'RE USING THIS INFORMATION FOR THE 2027 BUDGET. SO HOW ARE WE TRANSLATING BEACONS FORECAST INTO THAT BUDGET? SO BEFORE GETTING INTO OUR ASSUMPTION, WHICH IS, YOU KNOW, IT'S UP THERE, I WANT TO POINT OUT THAT BEACON PROVIDES THREE DIFFERENT SCENARIOS. 
          THEY PROVIDE A BASELINE SCENARIO, A HIGH GROWTH SCENARIO AND A LOW GROWTH SCENARIO. SO THEY'RE LOOKING AT IT FROM THREE DIFFERENT LENSES. 
          FOR 2728 THESE RANGES GO FROM 0.43 GROWTH IN THE LOW SCENARIO TO ALL THE WAY UP TO 5.86% 
          [01:50:02]
IN THE HIGH SCENARIO. SO IF WE HIT THE HIGH SCENARIO WE'D BE BACK WHERE WE WERE IN THE LAST FIVE YEARS. 
          WE CHOOSE TO USE AND HAVE CHOSEN OVER THE PAST SEVERAL YEARS, PROBABLY AS LONG AS WE'VE BEEN IN BUSINESS WITH BEACON TO USE THEIR BASELINE FORECAST RATHER THAN TRYING TO ANTICIPATE A LARGE UPSIDE OR DOWNSIDE SCENARIO. AND I'LL TELL YOU, COMING IN WITH A FRESH SET OF EYES AND LOOKING BACK AT THE HISTORICAL DATA, IT'S ALMOST SPOOKILY ACCURATE HOW, HOW CLOSE THEY HAVE BEEN. 
          LAST YEAR THEY WERE ONE BASIS POINT OFF WITH THEIR PROJECTION AND WHAT THE ACTUALS CAME IN. 
          SO I THINK TAKING THEIR BASELINE PROJECTION HAS BEEN THE RIGHT MOVE FOR THE PARK DISTRICT. SO BEACONS BASELINE FORECAST FOR 2728 IS 3.4%. YOU CAN SEE THAT THERE IN THE BOX ON THE LEFT. 
          AND WE ALSO NOW HAVE ACTUAL ASSESSED BASELINE FORECAST FOR 2728. OH I'M SORRY, WE NOW FOR 2627 OF 3.3%. SO IN THE, IN THAT TOP LEFT CORNER YOU'LL SEE THE 3.3% FOR 2627, RIGHT BELOW THAT THE 27, 2028, 3.4. AND AS I MENTIONED EARLIER IN A QUESTION, THE DISTRICT SPANS BOTH OF THOSE FISCAL YEARS. SO THE SIX MONTHS WITHIN 2627, THE LAST SIX MONTHS OF 2627 IS OUR YEAR AND THE FIRST SIX MONTHS IN 2728. 
          SO WE AGGREGATE THOSE TWO NUMBERS TO GET THAT 3.2 THAT WE ARE GOING TO BE BUDGETING WITHIN THE 2027 BUDGET. THAT RATE WE ESTIMATE WILL GENERATE APPROXIMATELY $6.9 MILLION IN ADDITIONAL PROPERTY TAX REVENUE. SO THIS IS RIGHT NOW WHAT WE'RE BUILDING THE BUDGET ON, AND AGAIN, WITH 90% OF OUR GENERAL FUND REVENUE COMING FROM PROPERTY TAXES, THIS IS REALLY THE VARIABLE THAT, YOU KNOW, WE LOOK AT AND CERTAINLY WANT TO CONVEY TO THE BOARD THE IMPORTANCE OF IT. EVEN RELATIVELY SMALL CHANGES IN ASSESSED VALUE GROWTH CAN HAVE MEANINGFUL IMPACT. 
          SO IF IT DOES END UP GOING UP A LITTLE BIT MORE IN 27, 28 ABOVE THE. THE FORECAST, NOW, THAT CAN HAVE MEANINGFUL EFFECT. WHEN I CAME TO THE BOARD AT CAMP ARROYO, WE HADN'T GOTTEN THE BEACON REPORT YET, SO WE WERE USING OLDER DATA. 
          IT WAS MAYBE 20 BASIS POINTS, 20, 30 BASIS POINTS HIGHER, BUT IT WAS ALMOST $2 MILLION DIFFERENCE. SO IT'S A BIG FLUCTUATION. SO IN SUMMARY, BEACON IS FORECASTING CONTINUED ASSESSED VALUE GROWTH, BUT AGAIN, AT A MORE MODERATE PACE THAN THE DISTRICT HAS EXPERIENCED OVER THE PREVIOUS FIVE YEARS. 
          WE HAVE AND WILL REFLECT THAT CHANGING ENVIRONMENT IN THE 2027 BUDGET WITH THAT 3.22% PROPERTY TAX GROWTH ASSUMPTION AND PLUG THAT $6.9 MILLION THAT THAT GENERATES IN ADDITIONAL REVENUE INTO THE DOCUMENT. 
          AND WITH THAT, I AM HAPPY TO ANSWER ANY QUESTIONS. 
          OKAY. DO WE HAVE ANY QUESTIONS? YOU SAID THAT LAST YEAR BEACON WAS ONLY ONE BASIS, THIS POINT OFF THE FORECAST. 
          AND LAST YEAR, DO YOU MEAN 2025 OR DO YOU MEAN THE 2526? I WAS JUST CURIOUS. THE 2026, 27. SO THE 26, 27. 
          THE COUNTIES RELEASE THEIR NEW ASSESSED VALUE DATA, REALLY, IN LATE JUNE OR EARLY JULY. OKAY. SO IS THE. 
          IS THE. OUR CURRENT BUDGET AND THE PROPERTY TAXES WE'RE GETTING FOR CALENDAR YEAR 2026, DOES IT MATCH WHAT THEY'RE. WHAT THE SECOND HALF OF THE YEAR IS? I'M JUST WONDERING IF IT HAS IMPROVED OR WHETHER IT'S THE SAME. 
          IT'S VERY CLOSE TO THE SAME. ALL RIGHT. 
          OKAY, THANKS. 
          THANK YOU SO MUCH FOR THAT. 
          THAT'S ALL REALLY 
          [01:55:01]
INTERESTING. I. 
          I THINK BEFORE I GO ANY FURTHER, THOUGH, WHY DON'T I. ARE THERE ANY PUBLIC COMMENTS ON THIS? THERE ARE NO PUBLIC COMMENTS. I WANT TO BE SURE. 
          OKAY. SO THE. YOU KNOW, I CAN KIND
OF UNDERSTAND WHY WE'RE IN THAT, IN THIS POSITION THAT WE'RE IN, BECAUSE WE GOT MULTIPLE THINGS GOING AGAINST
US RIGHT NOW. 
          I MEAN, THE ONES, TO ME THAT KIND OF RESONATE ARE SALES VOLUME, LOWER PRICE, NOT LOWER PRICES, BUT STAGNANT PRICES. AND. 
          AND THEN THE MORTGAGE RATES ARE LIKE, REALLY MAKE. 
          MAKE IT TOUGH FOR PEOPLE TO GO FROM ONE PROPERTY TO ANOTHER. IT'S JUST. 
          ESPECIALLY IF YOU'RE SITTING AT A 2.5% INTEREST RATE THAT YOU GOT IN 2020, DON'T WANT TO GIVE IT UP. WHERE ARE YOU GOING TO GO, YOU KNOW, UNLESS YOU'RE CASHING
OUT AND GOING SOMEWHERE ELSE. 
          SO, ANYWAY, I CAN KIND OF UNDERSTAND THAT. 
          BUT WHAT I REALLY APPRECIATE IS, YOU KNOW, US DOING ALL THIS WORK, YOU FOLKS DOING ALL THIS WORK, SO THAT WE'RE NOT JUST BLINDLY FLYING THROUGH THE, YOU KNOW, FISCAL WORLD HOPING FOR THE BEST. YOU KNOW, WE'RE USING REALLY GREAT INFORMATION. AND, YOU KNOW, THAT REPORT IS 35 PAGES, AND I READ IT, AND IT'S REALLY. 
          IT'S REALLY INTERESTING. I THINK I HAVE TO COMMEND BEACON FOR THAT. THEY MADE IT VERY READABLE, AND THEN THERE'S KIND OF A SUMMARY SO YOU CAN READ IT, AND THEN YOU GO, WOW, WOW, WOW, WOW. 
          WHAT DOES ALL THIS MEAN? WELL, THEN THEY TELL YOU, WHAT DOES IT ALL MEAN? THEN YOU TELL US WHAT IT MEANS, AND WE CAN ASK YOU QUESTIONS. 
          I LIKE THE FLOW OF THAT DOCUMENT AS WELL. IT
STARTS WITH THE NATIONAL ECONOMY STATE. 
          IT REALLY GETS DOWN TO EVENTUALLY THE EAST BAY LEVEL. AND OF COURSE, YOU KNOW, AS WE'RE READING THAT, THE TENSION'S BUILDING BECAUSE THEY WANT TO GET TO THE EAST BAY. WE WANT TO GET TO EXACTLY HOW IS IT GOING TO AFFECT US? YOU KNOW, AND NOW WE KNOW. 
          SO, YOU KNOW, ALL IN ALL, I'M REALLY HAPPY WITH HOW WE APPROACH THIS. 
          AND, YOU KNOW, I THINK WE'VE GOT SUFFICIENT FISCAL SAFEGUARDS IN PLACE, RESERVE FUNDS, AND JUST THE WAY WE DO OUR BUDGETING, WHAT WE COUNT AS REVENUE, WHAT WE DON'T COUNT, I FEEL VERY COMFORTABLE GOING IN. SO I APPRECIATE THAT. 
          SO I THINK THAT'S IT. UNLESS THERE'S ANY OTHER FURTHER QUESTIONS. THANK YOU VERY MUCH. 
          I JUST WANT TO SAY THANK YOU SO MUCH FOR THE REPORT, AND I'M GRATEFUL THAT YOU'RE HERE, AND I'M GRATEFUL THAT WE HAVE SOMEONE LIKE BEACON WHO CAN REALLY. THEIR TARGETS SEEM TO BE REALLY VERY PRETTY PRECISE AS YOU. THAT MAY NOT ALWAYS BE THE CASE, BUT IT'S REASSURING THAT AT LEAST IN THE PAST, THAT IT'S BEEN A PRETTY GOOD MATCH FOR WHAT WE'RE ACTUALLY EXPERIENCING. 
          SO THANK YOU FOR THAT. 
          YEAH, IT'S ALWAYS A GOOD THING WHEN YOU'RE DOING GRAPHS AND YOU HAVE THE PROJECTION VERSUS THE ACTUAL. 
          AND IT LOOKS LIKE ONE LINE. 
          YEAH. SO THAT'S WHAT A LOT OF WHAT THEY'VE DONE SHOWS. 
          YEP. 
          ALL RIGHT, GREAT. WELL, THANK YOU. THANK YOU. 
          NEXT IS ANNOUNCEMENTS. ANY ANNOUNCEMENTS? I DON'T HAVE ANY. THAT'S. 
          NUMBER SEVEN IS ADJOURNMENT. 
          AND WE ARE ADJOURNED AT 12:34. THANK YOU.
* This transcript was compiled from uncorrected Closed Captioning.