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DENNIS WAESPI: WELL, GOOD MORNING,[Roll Call]
AND WELCOME TO THE BOARD FINANCE COMMITTEE MEETING OF THE EAST BAY REGIONAL PARK DISTRICT, TODAY, OCTOBER 14, 2026.WE'RE CALLING THE MEETING TO ORDER AT 10:35.
MADAM CLERK, WILL YOU CALL THE ROLL? CLERK: THANK YOU.
ELIZABETH ECHOLS: PRESENT DIRECTOR MERCURIO.
CLERK: ALL MEMBERS ARE PRESENT.
OUR FIRST ITEM OF BUSINESS IS THE APPROVAL
[Approval of Minutes]
OF THE MINUTES OF THE BOARD FINANCE COMMITTEE MEETING OF AUGUST 12, 2026.AND SEEING THAT NEITHER MY COLLEAGUES WERE THERE, I THINK IT'S STILL LEGAL THAT WE-- JOHN MERCURIO: IT IS.
MAY HAVE A MOTION AND A SECOND TO APPROVE THESE MINUTES? JOHN MERCURIO: I MOVE THE APPROVE-- DENNIS WAESPI: --READ THEM AND FOUND THEM TO BE-- ELIZABETH ECHOLS: SECOND.
WE HAVE A MOTION AND A SECOND.
ANY FURTHER DISCUSSION? ANYTHING FROM THE PUBLIC? HEARING NONE, ALL IN FAVOR, SIGNIFY BY SAYING AYE.
MOTION PASSES UNANIMOUSLY, 3 MINUS 0.
WE'LL NOW MOVE TO PUBLIC COMMENTS.
DO WE HAVE ANY MEMBERS OF THE PUBLIC WHO WISH TO SPEAK? WOMAN: SORRY, LET ME SEE.
CLERK: WE HAVE NO PUBLIC COMMENT.
BOY, WE'LL MOVE NOW TO THE ACTION ITEMS.
[Action Items]
AND OUR FIRST ACTION ITEM IS THE RECOMMENDATION OF THE BOARD OF DIRECTORS TO ACCEPT THE 2025 ANNUAL COMPREHENSIVE FINANCIAL REPORT.AUDITOR'S COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE DATED 9/30/2026, 2025 SINGLE AUDIT REPORT, AND INDEPENDENT ACCOUNTANTS REPORT ON AGREED UPON PROCEDURES APPLIED TO THE 2026 APPROPRIATIONS LIMIT SCHEDULE.
JONAH, WERE ARE YOU GOING TO PRESENT THAT.
JONAH NICOLAS: I CAN CERTAINLY INTRODUCE.
HERE FROM OUR EXTERNAL AUDIT FIRM IS AMY MEYER, WHO IS A PARTNER THROUGH MAZE AND ASSOCIATES.
IT'S A CPA FIRM THAT HAS BEEN CONTRACTED WITH THE DISTRICT TO AUDIT THE FINANCIALS AND IS IN ITS SECOND, I BELIEVE, YEAR IN DOING SO.
SO AGAIN, HERE TO PRESENT THE RESULTS OF THAT AUDIT IS AMY MEYER.
AMY MEYER: GOOD MORNING, BOARD MEMBERS, GENTLEMEN.
GREEN, GREEN WOULD BE THE RIGHT COLOR.
SO YES, WE'RE HERE TO PRESENT THE RESULTS OF THE AUDIT.
IF YOU HAVE ANY QUESTIONS ALONG THE WAY, PLEASE FEEL FREE TO STOP ME, AND WE CAN GO-- AND OF COURSE, WE CAN GO OVER QUESTIONS AT THE END AS WELL.
SO WE'VE GOT THE RESULTS OF THE AUDIT.
YOU'LL NOTICE IN YOUR BOARD PACKET, IT SAYS DRAFT.
SINCE THE TIME OF THE AGENDA PUBLICATION, WE HAVE ISSUED THE FINANCIAL STATEMENTS IN FINAL FORM.
BUT THERE WERE NO CHANGES BETWEEN THE DRAFT AND THE FINAL FORM OF THE FINANCIALS.
SO WHAT YOU SEE IS EQUIVALENT TO THE FINAL REPORTS.
AND THIS IS WHAT WE'RE GOING TO GO OVER HERE TODAY THIS MORNING.
--THE DISTRICT AND ITS COMPONENT UNITS.
AND OUR AUDIT WAS CONDUCTED IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA, AS WELL AS GOVERNMENT AUDITING STANDARDS OR WHAT WE CALL YELLOW BOOK, WHICH ARE COMPLIANCE STANDARDS.
THE FIRST REPORTS THAT WE HAVE TO PRESENT TODAY ARE THE ACFR, ANNUAL COMPREHENSIVE FINANCIAL REPORT.
AND WE AUDIT THE SINGLE AUDIT, WHICH IS THE AUDIT OF THE FEDERAL AWARD PROGRAMS. AND THEN WE ALSO, IN YOUR PACKET, IS THE AGREED UPON PROCEDURES REPORT, WHICH IS NOT CONSIDERED AN AUDIT, BUT IT IS CONSIDERED WHAT WE CALL AN ATTEST OPINION ON THE CALCULATION OF YOUR APPROPRIATIONS LIMIT.
SO ON PAGE 19 OF YOUR AGENDA PACKET IS OUR AUDIT OPINION.
IT'S ON PAGE ONE OF THE REPORT WHEN ITS ISSUED IN FINAL FORM.
AND EVERYTHING WE SAY PROPOSE TO ISSUE.
BUT I'M GOING TO SAY ISSUED NOW, MAKE A PAST TENSE.
UNMODIFIED OR CLEAN OPINIONS ON THE PARK DISTRICT'S FINANCIAL STATEMENTS.
THAT'S TELLING YOU THAT THE FINANCIAL STATEMENTS ARE IN CONFORMITY WITH ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES AND FAIRLY STATED IN ALL MATERIAL RESPECTS WITH THE RESULTS.
LISTEN, I CAN'T TALK ABOUT ALL OF THIS THIS MORNING.
SO THERE IS ONE CHANGE THAT YOU'LL NOTICE IN THE OPINION.
LAST YEAR, WE REFERRED TO THE SEPARATE AUDITORS OF THE REGIONAL PARKS FOUNDATION, WHICH IS THAT DISCREETLY PRESENTED COMPONENT UNIT THAT CAME INTO THE FINANCIAL STATEMENTS LAST YEAR.
THIS YEAR, THERE'S NO REFERENCE TO SEPARATE AUDITORS.
BECAUSE FOR THE YEAR ENDED 12/31/25, WE BECAME THE AUDITORS OF THE REGIONAL PARK FOUNDATION.
THEY ENGAGED US TO PERFORM THEIR AUDIT.
AND SO IT IMPROVED THE TIMING OF THINGS.
AND SO THAT'S WHY THERE'S NO SEPARATE REFERENCE, EVEN THOUGH IT IS STILL CONSIDERED WHAT WE CALL A GROUP AUDIT.
BECAUSE A SEPARATE AUDIT TEAM PERFORMS THAT AUDIT.
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SO SOME KEY HIGHLIGHTS FROM THE-- DENNIS WAESPI: PARDON ME.SO IS THAT A STANDARD OF THE INDUSTRY THAT IF YOU HAVE AN ORGANIZATION AND A FOUNDATION THAT THEY HAVE THE SAME AUDITOR? AMY MEYER: NO, NOT NECESSARILY.
NO, BUT I KNOW THERE WERE SOME TIMING ISSUES LAST YEAR THAT THE PARK DISTRICT WAS NOT HAPPY-- OR EXCUSE ME, REGIONAL PARKS FOUNDATION WAS NOT HAPPY WITH THEIR AUDIT CHANGE LAST YEAR.
AND SO THEY ASKED US IF WE WERE AVAILABLE, THE TEAM.
IT'S A DIFFERENT AUDIT TEAM AND EVEN A DIFFERENT AUDIT PARTNER THAN HAD PREVIOUS.
BECAUSE WE WERE THEIR AUDITORS THREE YEARS AGO, I THINK.
THEY WENT OUT TO BID, CHANGED AUDITORS.
AND THEY ASKED US IF WE COULD COME BACK AS THEIR AUDITORS AGAIN.
BUT THERE WAS A ROTATION OF AUDIT PARTNER ON THAT TEAM FOR THAT YEAR.
IT CAN HELP WITH TIMING OF THINGS TO MAKE SURE THINGS ARE DONE.
SO THEY WERE DONE WELL BEFORE YOUR AUDIT WAS THE LAST YEAR IN '25.
SO THEN IT DIDN'T AFFECT THE ISSUANCE OF YOURS AS IT DID LAST YEAR.
BECAUSE THAT WAS THAT WAITING LAST YEAR FOR GETTING THEIR FINANCIAL STATEMENTS DONE.
AMY MEYER: SO SOME KEY HIGHLIGHTS IN THE FINANCIAL STATEMENTS.
SO THE ANNUAL COMPREHENSIVE FINANCIAL REPORT IS COMPRISED OF A NUMBER OF SECTIONS.
IT STARTS WITH AN INTRODUCTORY SECTION.
THEN THE MIDDLE PART IS THE BASIC FINANCIAL STATEMENTS, WHICH STARTS AT OUR AUDIT OPINION AND GOES ALL THE WAY BACK TO THE SUPPLEMENTARY INFORMATION OR THE COMBINING STATEMENTS.
AND THEN ON THE BACK END OF THAT IS A STATISTICAL SECTION.
SO WE AUDIT THE BASIC FINANCIAL STATEMENTS IN THE MIDDLE OF THE REPORT.
WE DO NOT OPINE ON THE INTRODUCTORY SECTION OR THE STATISTICAL SECTION.
SO INCLUDED IN THAT ARE THE NOTES TO THE BASIC FINANCIAL STATEMENTS.
THAT'S AN INTEGRAL PART OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT.
AND SO IT WILL GO INTO DETAILS FOR SIGNIFICANT TRANSACTIONS AND BALANCES IN THE FINANCIAL STATEMENTS.
SOME OF THE MORE IMPORTANT ONES THIS YEAR ARE YOUR NOTE 4 YOUR CAPITAL ASSETS.
NOTE 6 FOR LONG-TERM DEBT OBLIGATIONS.
AND NOTE 8 FOR YOUR OPEB PLAN OR OTHER POST-EMPLOYMENT BENEFITS PLANS.
AND SO AGAIN, THE FINANCIAL STATEMENTS DO INCLUDE THE DISCRETELY PRESENTED COMPONENT UNIT OF THE REGIONAL PARKS FOUNDATION.
I UNDERSTAND THERE'S GOING TO BE SOME STRUCTURAL CHANGES GOING FORWARD.
SO WE'LL HAVE TO LOOK AT THAT AND SEE HOW THAT IMPACTS THE PRESENTATION IN '26.
WE'LL FIGURE THAT OUT WITH THEM, IN CONCERT WITH THEM.
AND SO ONE POINT-- I DON'T THINK I HAVE-- NO, I DON'T HAVE IT IN HERE.
ONE POINT RIGHT AFTER AUDIT OPINIONS, MANAGEMENT'S DISCUSSION AND ANALYSIS.
AND THAT IS PREPARED BY THE FINANCE DEPARTMENT.
AND SO THAT'S ALSO A GOOD PLACE TO START.
AS THE AUDITOR, I ALWAYS SAY, I WANT YOU TO READ THE WHOLE REPORT.
BUT IF YOU'RE GOING TO START ANYWHERE, READ THE MANAGEMENT'S DISCUSSION AND ANALYSIS BECAUSE IT GIVES YOU THAT GREAT SUMMARY OF WHAT HAPPENED DURING THE YEAR, REASONS FOR CHANGES, AND FLUCTUATIONS FROM YEAR TO YEAR.
SO IT'S A GREAT SNAPSHOT OF WHAT'S GOING ON IN YOUR FINANCIAL STATEMENTS FOR THE YEAR.
BUT OF COURSE, READ THE WHOLE THING.
SO SIGNIFICANT EVENTS FOR THE YEAR.
AS YOU KNOW, YOUR MAIN PURPOSE, CAPITAL ASSETS, ACQUIRING LAND AND PARKS, AND KEEPING THINGS GOING, AND THEN SERVICES.
SO FOR THE YEAR, YOUR BIGGEST EVENTS THIS YEAR WAS $107 MILLION OF CAPITAL ADDITIONS, INCLUDING THE PURCHASE OF THE POINT MOLATE FOR $41 MILLION WITH AN OFFSETTING $35 MILLION STATE GRANT, ACCEPTANCE OF 190 ACRES FROM A DEVELOPER WITH AN ESTIMATED-- HOW IT GETS RECORDED, THE FINANCIAL STATEMENTS, IS ESTIMATED ACQUISITION VALUE AT THE TIME OF DONATION.
AND THEN, OF COURSE, THE SMALL PROJECT ACROSS THE STREET, PERALTA OAKS NORTH.
SO $50 MILLION WAS ADDED TO THAT PROJECT DURING THE YEAR ENDED, 12/31/25.
IT'S IN CONSTRUCTION IN PROGRESS STILL, THROUGH '25.
SO ANY QUESTIONS ABOUT THE ACFR BEFORE I MOVE ON TO THE SINGLE AUDIT, WHICH IS THE FEDERAL AWARD PROGRAMS? IF YOU HAVE ANY AS YOU GO THROUGH, WE CAN ALWAYS BACKTRACK.
SO ALSO IN THE PACKET IS THE SINGLE AUDIT, WHICH THAT IS THE AUDIT OF YOUR FEDERAL AWARD PROGRAMS, YOUR FEDERAL GRANTS.
SO A SINGLE AUDIT ENSURES THE RECIPIENTS OF GRANTS ARE SPENDING THE MONEY IN ACCORDANCE WITH WHAT THE GRANTORS' RULES ARE.
AND SOMETHING THAT GRANTORS DO EVERY YEAR THROUGH THIS PROCESS, IN A DOCUMENT CALLED THE COMPLIANCE SUPPLEMENT ISSUED BY THE OFFICE OF MANAGEMENT AND BUDGET, IS SAY WHICH COMPLIANCE REQUIREMENTS THEY WANT AUDITORS TO TEST FOR THEIR PARTICULAR GRANT FOR A YEAR.
AND THERE'S A MATHEMATICAL CALCULATION THAT GOES INTO TELLING US AS AUDITORS.
WE HAVE TO DO A RISK ASSESSMENT AND A MATHEMATICAL CALCULATION THAT TELLS US WHICH PROGRAMS WE HAVE TO TEST AS A MAJOR PROGRAM EACH YEAR OR A TESTED PROGRAM.
AND IT'S ONE OVERALL AUDIT INSTEAD OF EACH GRANTOR COMING IN AND AUDITING THEIR OWN INDIVIDUAL PROGRAM.
THAT'S WHY IT'S CALLED THE SINGLE AUDIT.
AND IT'S REQUIRED WHEN YOUR FEDERAL GRANT EXPENDITURES EXCEED $1 MILLION IN ANY ONE YEAR.
THAT IS UP FROM A THRESHOLD OF $750,000 IN '24.
AND NOW, IT'S $1 MILLION THRESHOLD.
IN THEORY, WITH THE NUMBER OF GRANTS THAT YOU RECEIVE EACH YEAR, IT'S VERY UNLIKELY THAT YOU WILL NOT REQUIRE A SINGLE AUDIT EACH YEAR.
SO THE OVERALL OBJECTIVES OF THE SINGLE AUDIT ARE-- WERE EXPENDITURES IN ACCORDANCE WITH GRANT LIMITATIONS AND EXPENDED ON ALLOWABLE ACTIVITIES?
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WAS REPORTING ACCURATE AND TIMELY? WERE PROCUREMENT STANDARDS FOLLOWED UNDER THE GRANTS? THESE ARE THE HEAVY POINTS WHEN IT COMES TO THE SINGLE AUDIT.AND THEN ALSO, WE'RE SUBRECIPIENT MONITORS.
PARK DISTRICT DOESN'T NORMALLY PASS THROUGH GRANTS TO OTHER AGENCIES.
SO IT'S NOT REALLY A COMPLIANCE ISSUE FOR YOU.
BUT YOUR GRANTORS MAY MONITOR YOU AS A SUBRECIPIENT IF YOU HAVE A PASS THROUGH GRANT THAT COMES FROM A NON-FEDERAL SOURCE.
SO THE RESULTS, FOR FISCAL '25, THE PARK DISTRICT EXPENDED $6.1 MILLION IN FEDERAL GRANTS OVER 10 PROGRAMS. AND SO YOU CAN FIND THE SEFA ON PAGE SIX OF THE SINGLE AUDIT REPORT.
THERE WAS ONE TESTED PROGRAM FOR '25.
THAT WAS THE 97.047, WHICH IS AN ASSISTANCE LISTING NUMBER IN THE FEDERAL REGISTER.
IT'S THE BUILDING RESILIENT INFRASTRUCTURE AND COMMUNITIES PROGRAM, ALSO KNOWN AS THE PRE-DISASTER MITIGATION GRANT PROGRAM, AT THE ANTHONY CHABOT LOCATION THIS YEAR.
SO THERE WAS ONE FEDERAL AWARD COMPLIANCE FINDING FROM THAT WORK, AND THAT WAS RELATED TO REIMBURSEMENT OF CONSTRUCTION RETENTIONS.
IT GOES INTO YOUR RETENTIONS PAYABLE.
IT'S A LIABILITY AT THE END OF THE YEAR OR DURING THE YEAR.
BUT WHEN REIMBURSEMENT IS REQUESTED FROM THE GRANTOR, YOU CAN ONLY REQUEST REIMBURSEMENT FOR CASH OUT THE DOOR, NOT NECESSARILY EXPENSES OUT THE DOOR, WHICH CAN BECOME A RECONCILING PROBLEM, WHICH IS WHAT IT WAS.
AND SO WE HAD TO QUESTION COSTS OF $9,700.
IT DOESN'T MEAN NECESSARILY YOU WOULD HAVE TO RETURN IT TO THE GRANTOR.
BECAUSE YOU WILL HAVE PAID THE RETENTION AT SOME POINT.
SO YOU JUST HAVE TO WORK WITH THE GRANTOR TO FIND OUT HOW TO RESOLVE THE FINDING.
DENNIS WAESPI: SO JUST A QUESTION.
SO WE HAD 10 PROGRAMS, AND YOU TESTED ONE PROGRAM OR AUDITED ONE PROGRAM.
SO THAT'S STANDARD OF THE INDUSTRY, LIKE, 10% OF? IF WE HAD 20, WOULD YOU HAVE DONE TWO? AMY MEYER: NO, THAT'S GREAT QUESTION.
SO AS I SAID, I MENTIONED EARLIER, IT WAS A MATH COMPONENT.
SO IT DEPENDS ON THERE ARE DIFFERENT RISK ASSESSMENTS.
WE HAVE TO ASSESS THE RISK OF THE DISTRICT OVERALL.
SO IS IT CONSIDERED HIGH RISK OR LOW RISK? AND WHERE THAT COMES FROM, FINDINGS IN THE PRIOR YEAR, IF YOU HADN'T HAD A SINGLE AUDIT, YOU'RE AUTOMATICALLY HIGH RISK, AS FAR AS THESE DEFINITIONS.
SO HIGH OR LOW RISK, THAT TELLS US THE OVERALL PERCENTAGE OF PROGRAMS DOLLAR WISE, NOT COUNT.
FOR YOU, IN '25, WE HAD TO TEST AT LEAST 20% OF THE DOLLARS.
THEN YOU GO THROUGH THESE RISK ASSESSMENT, WHERE YOUR PROGRAMS FALL.
WE HAVE TO ASSESS EACH INDIVIDUAL PROGRAM.
HIGH OR LOW RISK BASED ON THESE DIFFERENT RULES THAT WE HAVE TO GO THROUGH.
BECAUSE IT WAS ABOUT $1.9 MILLION.
NOT THAT WE TESTED 100% OF THE EXPENDITURES, BUT THE PROGRAM WAS $1.9 MILLION OUT OF THE $6 MILLION.
WE HAD 30% COVERAGE, AND SO IT MET THAT 20% THRESHOLD.
THAT MAKES SENSE? DENNIS WAESPI: IT MAKES PERFECT SENSE.
SO IT NOT ONLY CHOOSES HOW MUCH OR HOW MANY PROGRAMS YOU'RE GOING TO AUDIT, YOU CAN 0 IT DOWN TO MEET THOSE TWO CRITERIA.
AND THAT'S HOW YOU FIND WHICH PROGRAM TO TAKE.
IT WASN'T LIKE WE HAVE 10 PROGRAMS. WE SAID, HERE, AUDIT THIS ONE.
DENNIS WAESPI: YOU'RE SAYING, I WILL AUDIT THIS ONE.
WE HAVE TO GO THROUGH THESE RULES AND-- AND ONE OF THE EASIEST ONES TO UNDERSTAND IS WITH THAT NEW THRESHOLD OF A MILLION DOLLARS, WHEN WE GO INTO THE PLANNING FOR THE NEXT YEAR, ANY INDIVIDUAL PROGRAM THAT HAS EXPENDITURES OF A MILLION OR MORE, IF IT HASN'T BEEN TESTED IN THE LAST TWO YEARS, IT'S AUTOMATICALLY HIGH RISK.
YOU DON'T EVEN DO ANY RISK ASSESSMENT.
THEN YOU HAVE TO FIGURE OUT WHAT OTHER ONES WE HAVE TO RISK ASSESS AS WE GO THROUGH IT.
AND SO YOU START WITH THE EASY ONES FIRST.
WHAT ARE THE EASY ONES TO FIGURE OUT? AND THEN HOW MUCH FARTHER? AND THEN ONCE YOU'VE DONE THAT, THEN YOU LOOK AT YOUR COVERAGE.
DO YOU HAVE THAT 40% OR 20% DEPENDING ON HIGH RISK OR LOW RISK? IS IT THE AGENCY AS A WHOLE? HAVE YOU MET THAT THRESHOLD? NO, YOU HAVE TO TEST MORE.
SO IF YOU HAVE MET THE THRESHOLD, THEN YOU STOP.
SO IT'S AN INTERESTING ITERATIVE PROCESS, AND IT CAN BE A LITTLE INTERESTING.
BECAUSE IF ONE NUMBER CHANGES ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS, IT CAN THROW THE WHOLE MATH OFF.
YOU HAVE TO RELOOK AT EVERYTHING AND SEE IF YOU STILL MEET ALL THE CRITERIA.
AMY MEYER: SO AS PART OF THE SINGLE AUDIT, YOU'LL SEE IN THE REPORT, WE ISSUED TWO AUDIT OPINIONS IN THAT.
THERE'S ONE THAT'S RELATED TO FINANCIAL STATEMENT FINDINGS, WHICH INCLUDES THE PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AS WELL AS THE ANNUAL COMPREHENSIVE FINANCIAL REPORT AS A WHOLE.
AND THEN A SECOND OPINION THAT'S ABOUT COMPLIANCE SPECIFIC TO THE FEDERAL AWARD PROGRAMS. AND SO IN THAT, YOU'LL SEE THAT EVEN THOUGH WE HAD A COMPLIANCE FINDING WITH THE FEDERAL AWARD PROGRAMS THAT'S MENTIONED IN THE SECOND OPINION, IT WASN'T CONSIDERED A SIGNIFICANT DEFICIENCIES OR MATERIAL WEAKNESS.
BECAUSE IT WAS 9.7 THOUSAND-- EXCUSE ME, $9,000 OUT OF $1.9 MILLION OF EXPENDITURES.
SO ALSO AS PART OF OUR AUDIT, WE TEST-- SO MOVING
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BEYOND THE SINGLE AUDIT NOW, ANY MORE QUESTIONS ON THAT BEFORE I ROLL THROUGH TO THE NEXT ONE? SO ALSO AS PART OF OUR AUDIT, WE TEST INTERNAL CONTROLS, TO TEST WHETHER THE DAY TO DAY PRACTICES OF THE PARK DISTRICT ARE IN LINE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.TRANSACTIONS ARE RECORDED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
AND THAT YOU'RE IN COMPLIANCE WITH YOUR OWN POLICIES.
IF WE PICK A TRANSACTION RELATED TO DISBURSEMENTS, IS IT IN COMPLIANCE WITH YOUR PURCHASING POLICY? ARE THINGS RECORDED APPROPRIATELY IN THE GENERAL LEDGER? AND SO FROM THAT WORK, IF THERE ARE MATTERS TO REPORT, THERE ARE THREE POSSIBLE CATEGORIES FOR COMMENTS.
THERE'S MATERIAL WEAKNESS, SIGNIFICANT DEFICIENCY, AND OTHER MATTERS.
SO FROM THIS YEAR'S AUDIT, WE DID HAVE ONE MATERIAL WEAKNESS.
AND IT CAN BE A LITTLE CONFUSING.
BECAUSE IT'S RELATED TO THE SINGLE AUDIT AND THE PREPARATION OF THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS, WHY ISN'T IT IN THAT REPORT? IT'S THIS WEIRD NUANCE THAT THE PREPARATION OF THE SEFA, AS WE CALL IT, THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS.
PREPARATION OF THE SEFA IS CONSIDERED A FINANCIAL STATEMENT.
SO IT'S A FINANCIAL STATEMENT FINDING.
EVEN THOUGH IT'S SINGLE AUDIT RELATED, BECAUSE IT'S A FINANCIAL STATEMENT PREPARATION ITEM, IT GOES IN THE MEMORANDUM ON INTERNAL CONTROL.
AND SO IT WAS RELATED TO THE FEMA GRANTS, WHICH CAN BE REALLY CONFUSING ON HOW TO ACCOUNT FOR FEMA GRANTS.
IT'S NOT WHEN YOU SPEND THE MONEY WITH FEMA, IT'S WHEN THEY OBLIGATE IT.
NOT NECESSARILY WHEN YOU GET THE CASH IN THE DOOR, BUT WHEN THE OBLIGATION LETTER COMES OUT.
AND YOU HAVE A COMBINATION OF FEMA GRANTS WITH SUMMER REIMBURSEMENT BASED.
SOME ARE YOU SPENT THE MONEY 2 AND 3 YEARS AGO, AND YOU'RE WAITING FOR ALL OF THE APPROVALS TO GET THE FUNDING.
AND SO THE FEMA RULES ARE ONCE YOU GET THE APPROVAL, ONCE THEY'VE OBLIGATED THE FUNDING, THAT'S WHEN IT GOES ON THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS.
AND SO WE ASKED SOME QUESTIONS.
AND DISTRICT STAFF DID THE FIGURING OUT WHAT DID YOU GET-- WHEN WERE THINGS OBLIGATED, AND WHAT WAS ON THE REPORTED ON THE SEFA AND DETERMINED THAT A LARGE NUMBER OF GRANTS OBLIGATED DURING '25 HAD NOT BEEN INCLUDED ON THE SEFA.
DISTRICTS HAVE FIGURED OUT WHAT WAS WRONG, WE CAN'T IGNORE THE FACT THAT THE ORIGINAL SEFA PROVIDED FOR AUDIT WAS UNDERSTATED.
AND SO THAT'S WHY IT'S CONSIDERED A MATERIAL WEAKNESS, BECAUSE IT WAS MATERIAL TO THE SEFA.
NOT NECESSARILY TO THE DISTRICT AS A WHOLE, BUT SPECIFIC TO THE SEFA.
SO JUST TO GIVE YOU A LITTLE CONTEXT ON THAT.
SO WE DON'T ANTICIPATE THAT REPEATING IN THE FUTURE BECAUSE THE GRANTS DEPARTMENT HAS FIGURED OUT WHAT WENT WRONG.
THE PERSON THAT ORIGINALLY PREPARED IT ISN'T HERE ANYMORE, SO YOU CAN'T FIGURE OUT THE WHY.
THERE MAY HAVE BEEN A REASON IT WAS LEFT OFF, BUT YOU CAN'T TELL.
SO NOW, THEY'VE GOT SOME PROCESSES IN PLACE TO MITIGATE THAT.
THEN ALSO, AS WE HAD LAST YEAR, WE HAD SOME SIGNIFICANT DEFICIENCIES.
SO THEY ARE LESS CRITICAL THAN A MATERIAL WEAKNESS, BUT A LITTLE MORE THAN ANOTHER MATTER.
THERE ARE THREE NEW ITEMS, AND THEN A NUMBER OF REPEAT ITEMS. AND I WOULD SAY THAT MOST OF THE REPEAT ITEMS, I WOULD HOPE.
AS YOUR STAFF HAS MENTIONED, THEY'RE HOPING ONCE THEY GET THROUGH THE NEW ERP SYSTEM IMPLEMENTATION THAT THAT'S GOING TO REMEDY OR KNOCK OFF A FEW OF THESE ITEMS THAT HAVE BEEN HANGING AROUND FOR A COUPLE OF YEARS NOW.
BECAUSE THEY'VE BEEN VERY FOCUSED ON THE ERP, AND SO TIMING AND THINGS LIKE THAT.
BUT AS YOUR AUDITORS, WE CAN'T SAY IT'S FINE.
IT'S FINE THAT THINGS ARE LATE.
WE HAVE TO POINT OUT THAT-- WE'RE ALWAYS GOING TO RECOMMEND TO THE IDEAL.
WE'RE GOING TO RECOMMEND TO THE IDEAL.
THEN IT'S UP TO YOU TO DETERMINE THE COST BENEFIT OF TIMING AND THINGS LIKE THAT.
AND THEN THERE WERE ALSO THREE OTHER MATTERS, SOME MORE INFORMATIONAL ITEMS, OTHER THINGS TO POINT OUT FOR SOME RECOMMENDATIONS FOR IMPROVEMENTS.
AND THEN, OF COURSE, THE REPORT INCLUDES GOVERNMENTAL ACCOUNTING STANDARDS BOARDS PRONOUNCEMENTS THAT ARE COMING UP IN THE NEXT COUPLE OF YEARS THAT MAY IMPACT THE FINANCIAL STATEMENTS AS WELL.
AND THEN ALSO IN THE REPORT IS THE CURRENT STATUS OF THE PRIOR YEAR ITEMS, AND WHAT THE STATUS IS AS OF 12/31/25, AND MANAGEMENT'S PLAN FOR ANY IMPLEMENTATION REVISIONS GOING FORWARD.
ANY QUESTIONS ON THAT DOCUMENT? DENNIS WAESPI: ANY QUESTIONS, COMMENTS? SO, YOU FOUND SOME SIGNIFICANT DEFICIENCIES AND A COUPLE WE REPEATED FROM LAST YEAR.
AT WHAT POINT DID YOU SAY, GET WITH IT.
I KNOW THERE'S ALWAYS A MANAGEMENT RESPONSE AND GET SOME OF THE MANAGEMENT RESPONSES.
AND I KNOW IN ANOTHER AGENCY I WORKED AT, THEY WOULD ALWAYS SAY, YOU NEED TWO PEOPLE DEALING WITH IT.
WE ONLY HAD ONE PERSON IN THE DARN DEPARTMENT, AND-- AMY MEYER: EXACTLY.
DENNIS WAESPI: THE QUESTION WAS, ARE WE GOING TO HIRE ANOTHER FULL TIME PERSON TO DO THAT? BUT I MEAN, WHAT'S THE RESULT OF HAVING REPEAT THINGS-- AMY MEYER: SO THERE ARE CERTAIN THINGS THAT WE'RE GOING TO DIG OUR HEELS INTO.
DEPENDS ON HOW CRITICAL THE CONTROL ISSUE IS.
I'M GOING TO GIVE AN EXAMPLE FROM ANOTHER CLIENT, WHERE THEY SAID, IN THEIR RESPONSE TO A COMMENT THAT HAD BEEN HANGING ON FOR YEARS, WE'RE GOING TO DO THIS.
AND WE WERE LIKE, WHEN ARE YOU GOING TO DO THIS/ AND THEY SAID, WELL, WE JUST CAN'T BECAUSE WE'VE DECIDED THAT THAT'S NOT CRITICAL.
WELL, THEN YOU SHOULD SAY THAT IN YOUR RESPONSE.
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BECAUSE IF YOU KEEP SAYING YOU'RE GOING TO DO IT, WE'RE GOING TO EXPECT IT TO HAPPEN.IF YOU SAY NO, WE'VE ASSESSED THE COST BENEFIT OF THAT AND WE THINK THAT THIS MITIGATES THAT PARTICULAR CONTROL OR WHATEVER IS GOING, THEN WE'RE GOING TO CHANGE OUR AUDIT TO THAT.
SO THIS IS ONLY OUR SECOND YEAR BACK AS YOUR AUDITORS.
SO YEAR TWO, AND WITH THE ERP IMPLEMENTATION, AND WE KNOW A LOT OF THINGS HAVE BEEN CHANGING AND PLANS FOR CHANGING THINGS.
WE'RE GOING TO SAY, OK, IT'S OK FOR THAT YEAR.
WE'LL REPEAT THE RECOMMENDATION.
BUT THEN, WE WOULD EXPECT THERE TO BE SOME CHANGES GOING FORWARD.
AND AGAIN, WE WOULD HAVE THOSE CONVERSATIONS OF WELL, WHEN IS IT GOING TO CHANGE IF IT'S A CRITICAL AREA? IF IT'S A NON-CRITICAL AREA, THEN WE'LL HAVE A CONVERSATION OF, WELL, WHAT DO YOU THINK MITIGATES THAT PARTICULAR CONTROL WEAKNESS? THAT MAKES SENSE? JOHN MERCURIO: GOOD QUESTION.
AMY MEYER: YEAH, THESE ARE ALL GOOD QUESTIONS.
SO THE OTHER DOCUMENT IN YOUR PACKET IS THE REQUIRED COMMUNICATIONS.
SO WE ARE REQUIRED TO COMMUNICATE CERTAIN MATTERS TO YOU, SUCH AS, WERE THERE ANY CHANGES IN ACCOUNTING POLICY? THERE WERE NO CHANGES IN ACCOUNTING POLICIES DURING FISCAL '25.
OTHER THAN THE IMPLEMENTATION OF STATEMENT GASB 102, WHICH IS RELATED TO CERTAIN RISK DISCLOSURES.
BUT THERE WAS NO IMPACT TO THE FINANCIAL STATEMENTS.
IT WILL BE REVIEWED TO SEE IF THERE IS ANYTHING THAT NEEDS TO BE DISCLOSED EVERY YEAR GOING FORWARD.
THERE WERE NO UNUSUAL TRANSACTIONS OR CONTROVERSIAL EMERGING AREAS THIS YEAR.
THE FINANCIAL STATEMENTS DO, HOWEVER, INCLUDE A NUMBER OF ACCOUNTING ESTIMATES.
BECAUSE 12/31/25 IS THAT FROZEN POINT IN TIME.
SO THERE ARE A LOT OF ESTIMATES.
LIKE PENSION LIABILITIES IS THE BIGGEST ONE.
WHAT'S YOUR PENSION LIABILITY AT 12/31/25, IT COULD CHANGE THE NEXT DAY.
NEW MOU'S, NEW BENEFITS, NEW THINGS LIKE THAT.
SO THE LIABILITY COULD CHANGE GOING FORWARD.
THE FIDUCIARY NET POSITION CAN CHANGE WITH THE MARKET FLUCTUATIONS.
AND SO THAT CAN HAVE A BIG IMPACT.
SO HAVE TO POINT OUT THOSE ESTIMATES BECAUSE THE FINAL RESULTS COULD DIFFER FROM THOSE ESTIMATES.
OTHER SIGNIFICANT ESTIMATES IN THE FINANCIAL STATEMENTS INCLUDE THE DEPRECIATION OF CAPITAL ASSETS.
FAIR VALUE OF INVESTMENTS IS ANOTHER VERY LARGE ONE BECAUSE THAT CAN SWING.
AND THERE'S NO REQUIREMENT-- IF THE FAIR VALUE WERE TO CHANGE ON JANUARY 1, SIGNIFICANTLY FOR YOUR INVESTMENTS, THERE'S NO REQUIREMENT TO PULL BACK THAT CHANGE INTO THE 12/31 FINANCIAL STATEMENTS.
IT'S THE FAIR VALUE OF YOUR INVESTMENTS AT THAT END OF THE FISCAL YEAR.
THERE WERE NO DIFFICULTIES ENCOUNTERED IN PERFORMING THE AUDIT.
THERE WAS A DELAY, BUT IT WASN'T A DIFFICULTY IN THE SENSE IT WAS ASSESSING THE-- YOUR STAFF WAS GOING THROUGH THE ERP IMPLEMENTATION.
THERE WAS A LOT OF TIME CONSTRAINTS AND MEETINGS AND DOING THAT.
SO IT WAS A TRADE-OFF OF ONE OVER THE OTHER.
BUT THERE WERE NO DIFFICULTIES DURING THE AUDIT.
AND CORRECTED OR UNCORRECTED MISSTATEMENTS-- THERE WERE CORRECTED MISSTATEMENTS, BUT THEY WERE ALL AGREED TO WITH MANAGEMENT, AND NONE WERE MATERIAL RELATED TO THE FINANCIAL STATEMENTS.
AND THEN UNCORRECTED MISSTATEMENTS-- AS WE GO THROUGH THE AUDIT, WE MAY FIND LITTLE DIFFERENCES.
MAYBE YOU FIND AN INVOICE THAT WASN'T ACCRUED OR SOME OTHER LITTLE CORRECTION.
AND SO WE'RE REQUIRED TO-- WE CALL THOSE PAST ADJUSTMENTS.
AND WE'RE REQUIRED TO ACCUMULATE THEM ON A SCHEDULE TO MAKE SURE THEY DON'T BECOME MATERIAL AND SOMETHING THAT NEEDS TO BE RECORDED.
AND SO THEY WERE DEEMED TRIVIAL.
AND EVEN THOUGH WE DID HAVE SOME MINOR FINDINGS, BUT THEY WERE NOTHING THAT ELEVATED, NEEDED TO BE RECORDED.
SO THEY'RE NOTHING TO REPORT TO YOU.
AND WE'RE HAPPY TO ALSO REPORT WE HAD NO DISAGREEMENTS WITH MANAGEMENT.
ANY QUESTIONS ON THAT DOCUMENT? DENNIS WAESPI: QUESTIONS, COMMENTS? NO? AMY MEYER: THEN ALSO IN YOUR PACKET IS THE AGREED UPON PROCEDURES REPORT.
SO IT'S NOT CONSIDERED AN AUDIT, BUT IT IS WHAT WE CALL ATTEST BECAUSE WE ARE ISSUING AN OPINION ON, OR ATTESTING TO, THE CALCULATION.
SO WE TEST THE CALCULATION FOR THE NEXT FISCAL YEAR.
THAT WAS OUR TEST FOR THIS AUDIT PERIOD.
AND THERE WERE NO EXCEPTIONS RELATED TO THE CALCULATION OF THE LIMIT.
SO WE TRACED IT TO THE SUPPORTING DOCUMENTATION.
AND WITH THAT, ANY MORE QUESTIONS? DENNIS WAESPI: I DON'T THINK SO.
SO ANY OBSERVATIONS, COMMENTS? ELIZABETH ECHOLS: I WOULD LIKE TO THANK YOU FOR YOUR REPORT.
AND I REALLY APPRECIATE YOU ALSO WALKING THROUGH IT AND GIVING US A LITTLE MORE BACKGROUND ON THE PROCESS AND HOW IT'S DONE.
JOHN MERCURIO: IT'S PRETTY EVIDENT, IF YOU JUST WEIGH THIS DOCUMENT, WITHOUT EVEN LOOKING AT IT, IT'S A LOT.
AND AS DIRECTOR ECHOLS SAID, YOUR PRESENTATION AND THE STAFF REPORT AND JUST GOING THROUGH IT, I MEAN, IT HELPS US TO UNDERSTAND WHAT'S GOING ON.
[00:25:01]
AND IT'S REALLY IMPORTANT, REALLY IMPORTANT THAT WE GET THIS.AND THAT IT TURNS OUT-- OF COURSE, IT TURNS OUT IN A POSITIVE WAY.
BECAUSE I THINK IT'S JUST LIKE ONE OF THE CRITERIA THAT THE DISTRICT CAN BE EVALUATED.
AMY MEYER: RIGHT, YOUR BOND HOLDERS ARE LOOKING AT THAT.
JOHN MERCURIO: ANYBODY WHO'S REALLY INTERESTED IN FIGURING OUT WHAT WE'RE DOING AND HOW WE'RE DOING IT, THEY'RE GOING TO READ THIS AND THEY'RE GOING TO SEE THERE'S NOTHING TO SEE HERE.
BUT I REALLY LIKE, THE WHOLE IDEA OF THERE ARE A FEW MINOR ISSUES, BUT HAVING AN EXPLANATION.
IT'S NOT YES OR NO, BLACK OR WHITE.
THERE'S A REASON WHY THINGS HAVE HAPPENED.
AND THEN, OF COURSE, THERE'S ALSO THE GOOD INTENTIONS HERE OF WE'LL DO IT DIFFERENTLY NEXT TIME, AND IT WILL BE BETTER.
IT PROBABLY WON'T HAPPEN AGAIN.
IT HELPS ALSO TO BACK IT UP AND MAKE IT SOLID.
DENNIS WAESPI: THANK YOU VERY MUCH FOR YOUR REPORT.
AND JONAH, I KNOW THIS IS A BIG HEAVY LIFT BY OUR STAFF, TOO.
DENNIS WAESPI: SO WOULD YOU MIND INTRODUCING THE FOLKS? I KNOW IT'S IN THE DOCUMENT.
I KNOW DAVID'S ALWAYS INVOLVED WITH IT.
BUT WHO ELSE ON YOUR STAFF WAS INVOLVED WITH THIS PROCESS? AMY MEYER: AND I WANT TO JUMP IN FRONT OF HIM FIRST, TOO.
I ALWAYS FORGET TO THANK THEM.
BECAUSE WE ASKED FOR A LOT OF INFORMATION DURING THE AUDIT.
AMY MEYER: AND I REALLY APPRECIATE.
THEY'RE ALWAYS VERY RESPONSIVE WITH GETTING US WHAT WE NEED.
JONAH NICOLAS: THANK YOU, DIRECTOR WAESPI FOR THAT OPPORTUNITY.
I'M LOOKING AT CARREN SIKAT HERE, TIFFANY MARGULICI, CHRISTINA CROSBY, KIM IN THE BACK, ALL DO THE HEAVY LIFTING ON THIS PROJECT.
AND IT'S MULTI MONTHS, A LOT OF BACK AND FORTH WITH AMY.
AMY'S PATIENCE IS VERY MUCH APPRECIATED.
AND WE'RE JUST HAPPY TO PRESENT IT TO THE BOARD TODAY, AND WITH THE RESULTS THAT WE HAVE AN UNMODIFIED OPINION.
SO YES, THE STAFF WORKED VERY HARD IN CONJUNCTION AND PARALLEL WITH THE ERP IMPLEMENTATION.
SO THEY HAVE MY THANKS, AND I THINK IT SHOULD BE APPLAUDED.
DENNIS WAESPI: WELL, WE TRULY APPRECIATE ALL YOUR GOOD WORK.
WE DO HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD OF DIRECTORS' ACCEPTANCE OF THESE DOCUMENTS.
PARDON ME, I DIDN'T ASK FOR ANY PUBLIC COMMENT.
IS THERE ANY PUBLIC COMMENT ON THIS? CLERK: THERE IS NO PUBLIC COMMENT.
I HAVE A MOTION FROM DIRECTOR ECHOLS.
I ASSUME A SECOND FROM DIRECTOR-- JOHN MERCURIO: YOU HAVE ASSUMED CORRECTLY.
DENNIS WAESPI: IF THERE IS NO FURTHER DISCUSSION, ALL IN FAVOR, SIGNIFY BY SAYING AYE.
DENNIS WAESPI: OPPOSED? HEARING NONE, MOTION PASSES UNANIMOUSLY.
THANK YOU VERY MUCH FOR YOUR PRESENTATIONS.
AND THANK YOU VERY MUCH FOR YOUR GREAT WORK.
WE'LL NOW MOVE TO ITEM B, THE RECOMMENDATION OF THE BOARD OF DIRECTORS TO ACCEPT THE 2027 APPROPRIATION LIMIT REVIEW, THE GANN LIMIT.
DID I MOVE AHEAD TOO FAST? ELIZABETH ECHOLS: I DON'T THINK SO.
JONAH NICOLAS: AND JUST AS AMY HAD MENTIONED TOWARDS THE END OF HER PRESENTATION, ONE OF THE CALCULATIONS THAT HER FIRM DOES IS TO VERIFY THE GANN LIMIT THAT THE DISTRICT CALCULATES ON AN ANNUAL BASIS.
THEY VERIFIED THE 2026 GANN LIMIT.
HERE, WE'RE LOOKING AT WHAT THE GANN LIMIT FOR 2027 WOULD BE.
SO THIS IS A RELATIVELY SMALL PRESENTATION.
IT'S A FAIRLY STRAIGHTFORWARD CALCULATION, WITH THE CONSTITUTIONAL LIMIT BEING MUCH HIGHER THAN WHAT THE DISTRICT IS ACTUALLY ACHIEVING.
SO RUNNING UP AGAINST THE TOP LEVEL OF THE GANN LIMIT IS NOT SOMETHING THAT THE DISTRICT IS IN JEOPARDY OF DOING.
SO, IN GENERAL, WHAT THE GANN LIMIT DOES, IT'S A PROVISION IN THE CALIFORNIA CONSTITUTION THAT LIMITS THE AMOUNT OF TAX PROCEEDS A PUBLIC AGENCY CAN APPROPRIATE EACH YEAR.
GETTING OVER THAT GANN LIMIT, AT LEAST IN MY EXPERIENCE,
[00:30:04]
IS NOT SOMETHING I HAVE SEEN EXCEPT IN HIGHER EDUCATION IN A FEW YEARS AGO.WE ACTUALLY DID APPROACH THAT.
BUT THEN THERE WAS SOME HORSE TRADING ESSENTIALLY BETWEEN AGENCIES TO GET EVERYBODY UNDER THAT LIMIT.
THAT IS NOT THE CASE HERE WITH THE PARK DISTRICT.
SO AGAIN, THE PRIOR YEAR LIMIT IS WHERE YOU START.
THEN THERE'S A COST OF LIVING FACTOR, MULTIPLIED BY A POPULATION CHANGE.
AND THAT THEN UPDATES THE APPROPRIATIONS LIMIT FROM ONE YEAR TO THE NEXT.
AND SHOWING THROUGH THAT BAR GRAPH THERE, WHERE WE ARE RELATIVE TO OUR GANN LIMIT.
YOU CAN SEE THE APPROPRIATIONS LIMIT IS CALCULATED AT $621 MILLION.
AND WE ARE SUBJECTING OURSELVES TO THAT LIMIT AT A LITTLE LESS THAN $220 MILLION.
SO WE'RE REALLY ONLY ABOUT A THIRD OF THE WAY TO WHERE WE ACTUALLY COULD BE.
YOU CAN SEE THE CAPACITY BELOW THE LIMIT OF ABOUT $402-- $402 MILLION, I SHOULD SAY.
SO AGAIN, THAT CHART SHOWS THE EXCESS CAPACITY THAT THE DISTRICT HAS.
WITH THAT, AGAIN, A SHORT PRESENTATION REGARDING THE GANN LIMIT.
WE RECOMMEND THAT THE BOARD OF DIRECTORS OR THAT THE FINANCE COMMITTEE RECOMMEND TO THE BOARD OF DIRECTORS THE ACCEPTANCE OF THE 2027 APPROPRIATION LIMIT, SUBJECT TO THE LIMIT OF $621 MILLION.
AND WE ARE AT THE 219,353,100.
I'M HAPPY TO ANSWER ANY QUESTIONS.
ANY QUESTIONS, COMMENTS? JONAH NICOLAS: IT'S VERY STRAIGHTFORWARD.
DENNIS WAESPI: NO, IT'S PRETTY STRAIGHTFORWARD.
BUT YOU MENTIONED UPON-- I CAN'T BELIEVE, IS ANYBODY IN THE HISTORY, SINCE THIS LEGISLATION HAS BEEN ENACTED, GONE OVER THEIR GANN LIMIT.
JONAH NICOLAS: SO THE STATE ACTUALLY WENT OVER ITS GANN LIMIT A NUMBER OF-- DENNIS WAESPI: WITH THE EXCEPTION OF THE STATE, OF COURSE.
JONAH NICOLAS: FUNNY ENOUGH, NOT GETTING TOO MUCH INTO THE WEEDS, A LITTLE HISTORY.
SO WHAT THE STATE ACTUALLY DID WAS IT HAS OVERSIGHT OVER NUMBERS OF PUBLIC AGENCIES.
AND WHAT IT DID WAS IT LOOKED FOR ANY EXCESS CAPACITY WITHIN ANY OF THOSE OTHER AGENCIES, AND THEN WOULD UTILIZE THAT EXCESS CAPACITY IN ORDER TO GET THEIR LIMIT BELOW.
IT HAD NEVER BEEN DONE BEFORE.
IT WAS LEGALLY CHALLENGED, WAS DEEMED TO BE ACCEPTABLE.
BUT TO ANSWER YOUR QUESTION DIRECTLY, IT HAS COME INTO PLAY IN RECENT HISTORY, AND THERE HAS BEEN SOME MACHINATIONS IN ORDER TO GET UNDER IT.
DENNIS WAESPI: WELL, WITH THAT IN MIND, WE DO HAVE THE OPPORTUNITY TO RECOMMEND TO THE FULL BOARD THE ACCEPTANCE OF THIS LIMIT.
WOULD ANYONE LIKE TO MOVE-- CLERK: PUBLIC COMMENT FIRST.
DENNIS WAESPI: PARDON ME, PUBLIC COMMENT.
ELIZABETH ECHOLS: SURE, I WILL MOVE THAT.
WE HAVE A MOTION BY DIRECTOR ECHOLS.
DENNIS WAESPI: AND A SECOND BY DIRECTOR MERCURIO.
IF THERE'S NO FURTHER DISCUSSION, ALL IN FAVOR, SIGNIFY BY SAYING AYE.
DENNIS WAESPI: MOTION PASSES 3-0.
AND NOW, THE INFORMATIONAL ITEMS WE'LL MOVE TO, THE FIRST ITEM
[Informational Items]
IS THE ENVIRONMENTALLY SUSTAINABLE PURCHASING ANNUAL REPORT.JONAH NICOLAS: I THINK I GOT IT.
CAN YOU HELP ME SHARE IT? [INAUDIBLE] THANK YOU.
WELL, THIS PRESENTATION CERTAINLY MORE INVOLVED THAN THE GANN LIMIT THAT YOU JUST APPROVED.
IT'S THE ENVIRONMENTALLY SUSTAINABLE PURCHASING ANNUAL REPORT THAT FINANCE AND MANAGEMENT SERVICES PROVIDES EACH YEAR TO THIS COMMITTEE.
IT IS DICTATED THROUGH POLICY 8.0.
AND THE MAIN POINTS WITHIN THAT POLICY, YOU CAN SEE THERE IS REDUCED CONSUMPTION OF NATURAL RESOURCES, REDUCE WASTE AND ENVIRONMENTAL IMPACTS, SUPPORT BIODIVERSITY, AND RESILIENT NATURAL HABITATS.
[00:35:02]
AT THE BOTTOM, YOU SEE A TIMELINE OR HISTORY OF THIS POLICY, AGAIN, IMPLEMENTED 2008, CLOSE TO 20 YEARS AGO.UPDATED MUCH MORE RECENTLY IN 2023, WHICH IS THE POLICY THAT WE'RE MEETING TODAY BY DOING THIS REPORT AND HIGHLIGHTING THE VARIOUS ASPECTS OF THIS SUSTAINABILITY WITHIN THE DISTRICT.
SO WHAT PROGRESS HAVE WE MADE? QUITE A BIT.
I'LL GO LEFT TO RIGHT HERE AND SHOW THAT THE DISTRICT PROVIDES TRAINING, PURCHASING TRAINING ON SUSTAINABILITY PRACTICES, THE EMPLOYEE PARTICIPATION AND COMPLETION RATE THERE, EXTREMELY HIGH GREATER THAN 91%.
ONTO CENTRAL STORES, NEARLY HALF OF THE SALES WITHIN CENTRAL STORES HAVE BEEN IDENTIFIED AS GREEN GOODS.
AND THEN FOR THE FLEET, THERE'S BEEN A REAL PROACTIVE EFFORT TO CYCLE OUT THE GAS POWERED CARS.
AND WHEN APPLICABLE OR WHEN APPROPRIATE, REPLACE THEM EITHER WITH HYBRIDS OR FOR THE ELECTRIC OR FULLY ELECTRIC VEHICLES.
YOU CAN SEE IN 2026, WE ADDED 40 ELECTRIC AND HYBRID VEHICLES TO OUR FLEET.
AND AT THE SAME TIME, REMOVING 30 GAS OR DIESEL VEHICLES.
SO REALLY MOVING IN THE RIGHT DIRECTION IN BOTH ADDING ELECTRIC AND HYBRID VEHICLES AS WELL AS CYCLING OUT THE GAS AND DIESEL POWERED ONES.
I HAD MENTIONED THE TRAINING WITH THE 91 PLUS PERCENT COMPLETION RATE.
AND YOU HEAR A LOT OF TIMES HIGH PERCENTAGES, BUT IT COULD BE OFF A LOW BASE.
WE HAV1 1,100 EMPLOYEES THAT HAVE COMPLETED THIS TRAINING AS OF THE END OF SEPTEMBER, AND THEN THE REMAINING 106 ARE EITHER INCOMPLETE OR IN PROGRESS.
THE TOPICS, YOU CAN SEE THERE AT THE BOTTOM.
FOR THE LEAF TRAININGS, OPERATIONS FORUM, CLERICAL FORUMS, AND THEN SUMMIT.
OUR THIRD PARTY ONLINE TRAINING ALSO PROVIDES THE ABILITY FOR EMPLOYEES TO GO IN AND LEARN ABOUT THIS IMPORTANT TOPIC.
AND BACK TO CENTRAL STORES, WE HAD HIGHLIGHTED THE 47% OF ITS SALES ARE GREEN GOODS.
AND THE GRAPH YOU'LL SEE ON THE LEFT OVER THE LAST FIVE YEARS SHOWS NOT A TREMENDOUS INCREASE, BUT A POSITIVE TRAJECTORY ON THE SALE OF THE GREEN GOODS.
SO A LITTLE LESS THAN $1 MILLION IN 2022 AND LOOKING TO BE ABOUT $1.2 MILLION IN THE CURRENT YEAR.
SO ROUGHLY A 20% INCREASE OVER THAT FIVE-YEAR PERIOD.
AND SOME OF THE PRODUCTS THAT THE CENTRAL STORES HAS, YOU CAN SEE THERE THE OFFICE PRODUCTS OR RECYCLED PAPER, REFILLABLE PENS, COMPOSTABLE CUTLERY, ENVIRONMENTALLY CLEAN OR ENVIRONMENTALLY FRIENDLY CLEANING PRODUCTS.
AND THEN FACILITY SUPPLIES IN TERMS OF RECYCLED CONTENT LINERS, PAPER TOWELS, MORE.
IT'S REALLY A FUNDAMENTAL ASPECT OF THE WAY THAT CENTRAL STORES IS DOING ITS PURCHASING, REALLY TRYING TO ENHANCE AND GROW THE SUSTAINABLE PURCHASES THAT AND PRODUCTS THAT IT OFFERS.
AND THEN PART OF THE FLEET TRANSITION, I THOUGHT THE-- GO AHEAD.
DENNIS WAESPI: PARDON ME, JONAH.
CAN WE-- ELIZABETH ECHOLS: [INAUDIBLE] WHILE YOU WERE ON THAT-- WHILE YOU WERE ON THE SLIDE OF THE SUSTAINABLE PURCHASING, I DID HAVE A QUESTION ABOUT THIS.
BECAUSE I'M GLAD TO SEE THAT IT'S INCREASING 20% OVER THE LAST FIVE YEARS.
BUT I'M JUST CURIOUS, ARE THERE PARTICULAR AREAS WHERE IT'S BEEN HARDER TO GET PRODUCTS THAT ARE ENVIRONMENTALLY FRIENDLY? I'M JUST WONDERING HOW WE CAN ACCELERATE THAT MOVE TOWARDS ENVIRONMENTALLY
[00:40:03]
FRIENDLY PRODUCTS.JONAH NICOLAS: I'D HAVE TO GET BACK TO YOU ON THAT, DIRECTOR ECHOLS.
WE HAVE A CENTRAL STORE SUPERVISOR WHO I CAN REACH OUT TO AND WHO COULD PROVIDE A MUCH MORE DETAILED ANSWER THAN ME.
ELIZABETH ECHOLS: WHAT I'M CURIOUS ABOUT IS IF THERE'S CERTAIN SEGMENTS OF PRODUCTS THAT ARE LESS AVAILABLE IN ENVIRONMENTAL FASHION, OR WHETHER IT'S THAT PEOPLE AREN'T BUYING THE ENVIRONMENTAL PRODUCTS AT THE UPTAKE THAT WE WOULD LIKE.
JUST WANTED TO GET TO THE REASON WHY WE'RE NOT DOING BETTER THAN 47%.
BUT I AM GLAD TO SEE THE PROGRESS.
JONAH NICOLAS: I WILL FOLLOW UP AND PROVIDE YOU ANSWERS.
AND THEN ON THE FLEET TRANSITION, JUST THOUGHT THAT THIS WAS PRETTY COOL.
THE NEW MACK TRUCK, FULLY ELECTRIC, THAT THE DISTRICT HAS PURCHASED.
THERE'S ALSO A CASCADIA FREIGHTLINER THAT THE DISTRICT HAS ALSO PURCHASED TO TRANSPORT HEAVY EQUIPMENT FOR ITS ROADS AND TRAILS CREW.
THESE ELECTRIC VEHICLES, WHILE FAIRLY EXPENSIVE ON ITS FACE, ALSO QUALIFY FOR VERY SUBSTANTIAL FEDERAL TAX REBATES.
SO AS AN EXAMPLE, THAT MACK TRUCK, THE TAX REBATE ON THAT WAS GREATER THAN $100,000.
SO IT'S ONE OF THOSE REBATES THAT SUNSET OR POTENTIALLY SUNSET EACH YEAR.
SO YOU TRY AND GET IN UNDER THAT.
BUT WE'VE CERTAINLY, AT THE PARK DISTRICT, UTILIZED AND MAXIMIZED THE ABILITY TO LOWER THE COSTS EVEN FURTHER ON THESE EV VEHICLES.
AND THEN ON WASTE REDUCTION AND RECYCLING, SO OUR PURCHASING AND OPERATIONAL PRACTICES REALLY GO TOWARDS SUPPORTING THIS.
THERE'S SEPARATE RECYCLING FOOD WASTE AND TRASH AT THE DISTRICT FACILITIES.
MY DIVISION, FINANCE AND MANAGEMENT SERVICES, WAS JUST OUT AT LAKE CHABOT REGIONAL PARK YESTERDAY.
SAW ALL OF THESE OUT THERE, VERY MUCH PROMINENT WITH SIGNAGE HOW TO UTILIZE THAT.
SO IT'S AN ONGOING OPERATION WITHIN THE DISTRICT TO, AGAIN, CONTINUALLY PROMOTE THE RECYCLING ABILITIES AT OUR PARKS.
JOHN MERCURIO: I ACTUALLY HAVE A QUESTION ABOUT LOOKING AT THAT IMAGE THERE.
I DON'T SEE A COMPOSTING OPTION LIKE WE HAVE HERE IN THE BUILDING.
AND THE THREE STREAM THING IS PRETTY COMMON.
SO HAVE WE GONE AWAY FROM THAT? JONAH NICOLAS: NOT TO MY KNOWLEDGE.
IT MAY HAVE JUST BEEN, IN THIS MOMENT, AN UNFORTUNATE PICTURE THAT WAS CHOSEN.
SO, NO, I DON'T THINK WE'VE GONE AWAY FROM THAT.
I THINK THAT THIS PICTURE PROBABLY IS JUST NOT SHOWCASING THAT.
JONAH NICOLAS: AND THEN THROUGH BUILDING THE PROGRAM BEYOND PURCHASING, SO THERE'S JUST ONGOING COMMUNICATION AND RECOGNITION.
SO THE BAY AREA GREEN BUSINESS CERTIFICATION THAT WE HAVE DEMONSTRATES OUR COMMITMENT.
THAT CERTIFICATION, YOU CAN SEE THERE IS OUT THROUGH SEPTEMBER 2027.
WE'VE BEEN DOING FLASH SALES AT THE CENTRAL STORES TO TRY AND PROMOTE AND CANDIDLY REDUCE SOME INVENTORY THAT HAS BEEN SITTING FOR A WHILE.
AND THEN JUST THE STAFF OUTREACH THROUGH THE NEW EMPLOYEE ORIENTATION.
WE HAVE ADVISORY COMMITTEES, AND THERE'S OTHER CHANNELS JUST TO REINFORCE THE POLICY AND LOOK FOR FEEDBACK AND POTENTIAL NEW OPPORTUNITIES AT THE PARK DISTRICT CAN DEVELOP.
WE'RE LOOKING TO, AGAIN, SEEK ALTERNATIVES.
WE HAVE THAT SMALL GAP, LESS THAN 10% ON THE TRAINING WITH EMPLOYEES.
WE'RE GOING TO CONTINUE TO WORK TOWARDS REDUCING THAT GAP.
AND THEN REALLY TRACK OUR RESULTS ON AN ANNUAL BASIS.
SO MY HOPE IS WHEN WE COME FORWARD TO THIS COMMITTEE A YEAR
[00:45:01]
FROM NOW, WE'LL HAVE EVEN BETTER NUMBERS, TO YOUR POINT, DIRECTOR ECHOLS, WITH THAT 47%.HOPEFULLY, TRACKING INTO THE MAJORITY, GREATER THAN 50% AND THEN HAPPY TO ANSWER ANY QUESTIONS.
DENNIS WAESPI: ANY QUESTIONS, COMMENTS FROM BOARD MEMBERS? JOHN MERCURIO: SO I'M NOT SURE IF YOU WOULD KNOW THIS, SO IT'S OK.
BUT IS IT CIVIC CORE THAT SERVICES ARE RECYCLING AND MAYBE OUR TRASH AS WELL? I KNOW THEY DO THAT FOR PUBLIC AGENCIES.
JONAH NICOLAS: YEAH, I'D HAVE TO CHECK WITH SANITATION.
JOHN MERCURIO: AND THE OTHER THING THAT I ALWAYS WONDER ABOUT IS, NO MATTER WHERE I AM, I CAN'T HELP BUT LOOK INTO-- I PUT SOMETHING IN THE RECYCLING, I LOOK IN, THERE'S ALL KINDS OF STUFF THAT SHOULDN'T BE IN THERE.
AND THAT'S JUST THE WAY IT IS BECAUSE NOT EVERYBODY IS AWARE.
I'VE HEARD THAT WHEN RECYCLES ARE CONTAMINATED LIKE THAT, THEY'RE NOT RECYCLES ANYMORE.
SO I'M JUST WONDERING WHAT HAPPENS TO OURS.
IF SOMEBODY TOSSES IN SOMETHING THAT'S ALL GOOEY AND MESSY AND IT GETS ALL OVER THE STUFF THAT WANTS TO BE RECYCLED, DOES IT ALL DISQUALIFY AND THROW IT INTO THE-- GO TO LANDFILL OR NOT? SO THAT'S ONE THING I WAS WONDERING ABOUT.
THE OTHER A COUPLE OF OTHER ONES I'M WONDERING IS DO OUR PAPER TOWELS FROM THE RESTROOMS, THERE'S A LOT OF USAGE OF THAT.
THAT'S JUST A TREMENDOUS VOLUME.
AND IN MY OPINION, A LOT MORE IS USED THAT NEEDS TO BE USED JUST BY PEOPLE'S HABITS.
DOES THAT ALL GO TO COMPOST? JONAH NICOLAS: TO MY KNOWLEDGE, IF-- JOHN MERCURIO: IS THERE A WAY TO DO THAT? JONAH NICOLAS: IF IT'S PURCHASED THROUGH CENTRAL STORES, I BELIEVE THEY ARE GREEN PRODUCTS.
THERE ARE-- JOHN MERCURIO: NO, GO TO COMPOST AFTER THEY'RE USED.
IS THAT TAKING OFF INTO THE COMPOSTING STREAM? JONAH NICOLAS: I WOULD HAVE TO-- DENNIS WAESPI: PARK RANGERS GENERALLY DON'T HAVE THE ABILITY TO GO THROUGH THE STREAM AS THEY'RE PICKING UP LITTER AND CLEANING RESTROOMS. IT'S JUST UNFORTUNATE, BUT ALMOST IMPOSSIBLE.
I MEAN, THE ANSWER, IN MY OPINION, IS DO ELECTRIC DRYERS DON'T HAVE ANY PAPER AT ALL? AND OBVIOUSLY, SOME OF OUR RESTROOMS DON'T HAVE ELECTRICITY TO THEM.
AND AT THAT POINT, I WOULD USE YOUR PANTS IN MY OPINION.
AND THEN THE OTHER QUESTION I HAD WAS, DOES THIS POLICY APPLY TO PURCHASE OF ENERGY? IN OTHER WORDS, HEATING ENERGY, AND FOR INSTANCE, ENERGY USED FOR HEATING AND COOLING.
ARE WE MAKING AN EFFORT TO PUT THAT, TO CONTROL THAT AS WELL.
JONAH NICOLAS: ARE YOU SPEAKING SPECIFICALLY ABOUT SOLAR OR-- JOHN MERCURIO: NO, WELL, TO CUT TO THE CHASE, WHERE WE SET THE THERMOSTAT.
MY EXPERIENCE WITH WORKING IN AN OFFICE IS IT'S ALWAYS TOO COLD IN THE SUMMER.
MY EXPERIENCE WITH GOING TO SAFEWAY IS IT'S ALWAYS TOO COLD IN THERE.
I JUST WONDER WHY WE'RE WASTING ALL THIS ENERGY WHEN NOBODY'S COMFORTABLE.
JONAH NICOLAS: MY EXPERIENCE WITH THAT, DIRECTOR MERCURIO, IS OSHA TYPICALLY HAS A RANGE OF WHAT'S ACCEPTABLE, EITHER IN HOT WEATHER OR IN COLD WEATHER.
WHERE WE FALL WITHIN THAT, WHETHER AT THE ONE EXTREME OR THE OTHER, I'M UNSURE.
I DO NOT BELIEVE THAT THE POLICY SPECIFICALLY STATES THAT THE BUILDINGS WITHIN THE DISTRICT ARE TO BE HEATED AT OR COOLED NO LOWER THAN 77 DEGREES OR-- I DON'T THINK THAT THAT'S EMBEDDED WITHIN THE POLICY.
I JUST WANTED TO CHECK IT OUT.
ELIZABETH ECHOLS: WELL, I WANTED TO ALSO NOTE YOUR PROGRESS ON THE ELECTRIC AND HYBRID VEHICLES, SO THAT'S EXCITING, AND ESPECIALLY LIKE THE MACK TRUCK.
AND TO JOHN'S POINT ABOUT THE TEMPERATURES, I THINK THAT IT IS GOOD TO HAVE THAT AWARENESS.
BECAUSE I AGREE, IT'S OFTEN COLD.
AND I ALWAYS FIND I HAVE TO BRING AN EXTRA JACKET OR SOMETHING.
BUT AT THE SAME TIME, HAVING A SET NUMBER WHERE WE SAID IT MAY NOT WORK BECAUSE IT CAN BE-- I MEAN, SOME PEOPLE, WHERE THEY SIT MIGHT HAVE A LOT OF SUN COMING IN.
SO EVEN IF YOU HAD-- THERE'S PROBABLY DIFFERENT MICROCLIMATES WITHIN THE BUILDING, EVEN WHEN YOU'RE ADJUSTING FOR-- EVEN USING THE THERMOSTAT IN AN OFFICE.
SO I WOULDN'T WANT TO TAKE THAT BIT OF COMFORT
[00:50:02]
AWAY FROM PEOPLE EITHER.SO THERE'S A TRADE-OFF THERE THAT I JUST WANT TO BE AWARE OF.
JONAH NICOLAS: TO YOUR POINT, OFTENTIMES, SOMEBODY'S CUBICLE OR OFFICE COULD BE RIGHT UNDER A VENT.
AND WHAT'S AFFECTING THEM IS DIFFERENT THAN WHAT IS AFFECTING A LOT OF THE OTHER PEOPLE IN THE BUILDING.
SO THERE'S A LOT GIVE AND TAKE, FOR SURE.
BUT IT IS, IN GENERAL, IMPORTANT TO BE AWARE OF NOT WASTING.
BECAUSE ESPECIALLY WITH AIR CONDITIONING, IT DOES-- PLACES, IN GENERAL, DO TEND TO BE OVER AIR CONDITIONED.
DENNIS WAESPI: I JUST HAVE A COUPLE OF QUESTIONS.
SO I NOTICED THAT THESE GREAT PHOTOS ARE ADVERTISING 100% RECYCLED PAPER.
DO WE USE 100% RECYCLED PAPER IN EVERYTHING WE DO AROUND HERE? JONAH NICOLAS: YES.
I'LL CREDIT STEVE MILEY, A GREAT PERSON WHO USHERED THAT POLICY IN HERE.
I'M GLAD THAT WE'RE STILL DOING THAT.
AND WE TALK ABOUT ENERGY CONSERVATION.
I THINK THERE WAS AN AUDIT DONE THROUGHOUT THE DISTRICT.
AND THE FLUORESCENT LIGHT BULBS ARE T8'S WHEN THEY USED TO BE T11'S.
I DON'T EVEN KNOW WHAT THAT MEANS, BUT THEY ARE MUCH MORE EFFICIENT.
SOME OF OUR BUILDINGS ARE-- LIGHTS GO OFF WHEN YOU LEAVE THE BUILDING.
I THINK WE'RE DOING A PRETTY GOOD JOB OF THAT.
I DIDN'T GO TO THE TOUR YESTERDAY, BUT I'D LOVE TO SEE IF THAT'S TAKEN EFFECT OVER THERE AT THE NEW PLACE.
WATER CONSERVATION, WE HAVEN'T MENTIONED THAT.
BUT I KNOW THERE'S SOMEONE USED TO BE IN CHARGE OF THAT IN THE PARK DISTRICT.
I THINK THAT'S A REAL BIG THING.
AND I THINK YOU'RE DOING A GREAT JOB OF DOING THIS.
YOU LOOK AT WHAT HAPPENED IN 2008-- AND I HATE TO SUGGEST WHO WAS IN CHARGE OF THIS PROGRAM IN 2008.
BUT IT'S COME AN INCREDIBLE WAY.
AND I THINK PEOPLE LIKE ANDREW GREEN, WHO'S A RECYCLING COORDINATOR IN THE DISTRICT HAS DONE AN EXCELLENT JOB.
AND SOME OF THE CHAMPIONS UP HERE ARE DOING AN EXCELLENT JOB ALSO.
ONE THING I WOULD SAY DO, WE STILL PURSUE RECYCLING GRANTS? BECAUSE I KNOW WE USED TO.
AND OBVIOUSLY, THEY'RE NOT GOING TO BE THE MILLION DOLLAR RANGE.
BUT THERE ARE MANY GRANTS OUT THERE FOR RECYCLING CONTAINERS, THINGS LIKE THAT.
AND STOP WASTE IS SUCH A GREAT, GREAT ASSET AND PARTNER OF OURS.
JONAH NICOLAS: I DO NOT HAVE THE ANSWER TO THAT, BUT I CAN CERTAINLY ASK THE GRANTS DEPARTMENT.
AND THEN I WILL SPEAK ON BEHALF OF DIRECTOR ECHOLS.
DIDN'T HAVE THE COURAGE TO BRING IT UP.
CAN I VOLUNTEER? CAN DIRECTOR ECHOLS AND I VOLUNTEER TO PUT A REAL DISHWASHER IN THERE? IT'S A MOOT POINT NOW BECAUSE WE'RE ALL GOING TO MOVE OVER THERE.
BUT-- ELIZABETH ECHOLS: WELL, IN THE NEW BUILDING, I THINK, IS THE FOCUS NOW.
SO YES, WE DO WANT AN ENERGY EFFICIENT DISHWASHER IN THE NEW BUILDING.
BECAUSE I DON'T THINK THAT THERE'S BEEN-- SOME PEOPLE SAY WHAT'S IN THIS BUILDING IS A DISHWASHER, PEOPLE SAY.
SOME PEOPLE SAY IT'S JUST LIKE STEAMING THE PLATES.
BUT IN ANY CASE, I DO THINK, FOR HEALTH REASONS AND WATER CONSERVATION REASONS, IT WOULD BE GOOD TO JUST HAVE A DISHWASHER SO PEOPLE AREN'T JUST DOING THEIR OWN.
DENNIS WAESPI: IT'S SORT OF A LITTLE JOKE AMONGST OURSELVES.
SO WE TALKED ABOUT CONSERVATION AND WASTE REDUCTION.
AND PEOPLE WOULD BUY PLASTIC FORKS AND SPOONS AND FILL DRAWERS IN THE EMPLOYEE LUNCHROOM.
PAPER PLATES, PAPER CUPS WERE EVERYWHERE.
AND SO I DO RECALL THE TIME THAT I PROPOSED THAT WE CHANGE THAT.
AND MY DEAR BOSS, WHO I LOVE-- A WONDERFUL PERSON-- SAID, OK, WE'RE GOING TO PUT A DISHWASHER UP HERE.
AND SHE PUT IT IN THAT ROOM FOR THE BOARD TO SEE, LIKE WE WERE DOING SOMETHING.
DIDN'T DO ANYTHING IN THE LAUNDRY ROOM.
BUT IT'S CHANGED, AND I'M GLAD IT HAS.
JONAH NICOLAS: WELL, AS AN INDIVIDUAL WHO GREW UP IN A FAMILY THAT OWNED SEARS STORES PRIOR TO THEM GOING OUT OF BUSINESS, IF YOU DO GET A DISHWASHER, I COULD CERTAINLY INSTALL IT FOR YOU.
[LAUGHTER] DENNIS WAESPI: EXCELLENT, EXCELLENT.
SO, ANY PUBLIC COMMENTS ON THIS? CLERK: WE DO HAVE ONE PUBLIC COMMENT.
MAEDOW D'ARCY: GOOD AFTERNOON.
MY NAME IS MEADOW D'ARCY, AND I REPRESENT AFSCME LOCAL 2428.
AND I FIGURED SINCE DENNIS WAS TALKING ABOUT DISHWASHERS, MIGHT BE A GOOD TIME TO TALK AS WELL.
SO, I JUST WANTED TO CHIME IN THAT THAT IS SOMETHING THAT I THINK OUR EMPLOYEES ALSO HAVE
[00:55:02]
BEEN WANTING FOR A LONG TIME.WHEN WE MOVED FROM NO LONGER USING PAPER PRODUCTS, THERE'S A MISHMASH OF DISHES IN THERE.
I DON'T KNOW WHO WASHES THEM, BUT IT'S A LITTLE SUS WHEN YOU GO IN THERE.
AND SO FOR A LOT OF PEOPLE, THEY'RE VERY FRUSTRATED WITH NOT HAVING THE ACTUAL TOOLS TO CLEAN THE DISHES AND MAKE SURE THAT THEY'RE SANITARY AND THINGS LIKE THAT.
AND SO MOST PEOPLE DON'T USE THEM, AND THEY JUST BRING THEIR OWN PAPER PRODUCTS FROM HOME, WHICH KIND OF DEFEATS THE PURPOSE.
SO AS YOU TALKED ABOUT THAT, I THINK THAT WOULD BE A GOOD IDEA TO HAVE AVAILABLE TO ALL EMPLOYEES.
BECAUSE EVEN IN THIS AREA, THAT'S NOT SOMETHING THAT THE EMPLOYEES ARE NECESSARILY ACCESSING.
BUT WE HAVE AN EMPLOYEE AREA, AND THERE IS NO DISHWASHER OR ANYTHING LIKE THAT TO CLEAN THE DISHES.
SO, WOULD DEFINITELY LIKE TO SEE THAT.
AND THEN ANOTHER COMMENT I WANTED TO MAKE, WHICH I'VE MADE BEFORE, IS ABOUT THE ELECTRIC VEHICLES, IS MAKING SURE THAT EMPLOYEES ARE ALSO INCLUDED IN THOSE CONSIDERATIONS.
SO FOR EXAMPLE, WE HAVE A LOT OF EMPLOYEES THAT HAVE ELECTRIC VEHICLES, BUT THERE'S NOWHERE TO PLUG-IN HERE.
THE AREAS UP HERE ARE ONLY FOR DISTRICT VEHICLES.
AND SO EMPLOYEES DON'T HAVE ANYWHERE TO PLUG-IN HERE AT WORK.
AND ALSO, E-BIKES, WE'VE TALKED ABOUT SOME PEOPLE ARE RIDING E-BIKES, BUT THERE'S CONCERNS ABOUT SECURITY AND HAVING THEM LOCKED OUTSIDE OR BRINGING THEM INTO THE BUILDINGS.
PEOPLE ARE JUST TRYING TO FIGURE OUT WHAT TO DO.
AND NONE OF THOSE SEEM LIKE ADEQUATE WAYS OF DOING IT.
SO I THINK WE'VE TALKED BEFORE ABOUT MAYBE ADDING BIKE LOCKERS OR SOMETHING WHERE PEOPLE COULD PLACE THEIR E-BIKES AND JUST MAKE COMMUTING A LITTLE BIT MORE ENVIRONMENTALLY ACCESSIBLE TO ALL EMPLOYEES AS WELL.
I THINK WHEN YOU BECOME LEED SILVER-- I THINK THAT BUILDING IS GOING TO BE LEED SILVER.
WE DIDN'T GO TO GOLD OR PLATINUM? JOHN MERCURIO: LEED GOLD, I THINK.
DENNIS WAESPI: LEED GOLD? THEN, I THINK ONE OF THE REQUIREMENTS, IF NOT MISTAKEN-- I HAVEN'T SEEN THE BUILDING YET-- IS A PLACE FOR BIKES AND A PLACE TO SHOWER BEFORE YOU GO TO WORK.
SO YOU RIDE YOUR BIKE TO WORK, SHOWER, AND GO TO WORK.
AND I DON'T KNOW THAT THAT'S IN THERE, BUT I SURELY HOPE IT IS.
JOHN MERCURIO: THERE IS, I THINK.
DENNIS WAESPI: THERE IS, GOOD.
ANYWAY, THIS IS A INFORMATIONAL ITEM.
I MEAN, I LOVE TO SEE THIS REPORT EVERY YEAR.
WE'RE GETTING BETTER AND BETTER.
DENNIS WAESPI: REN'S GOING TO TALK ABOUT JOB ORDER CONTRACTING IN OUR QUARTERLY STATUS UPDATE.
REN BATES: YES, THANK YOU, DIRECTOR WAESPI.
REN BATES, DIVISION LEAD ON DESIGN AND CONSTRUCTION.
MY SLIDES TYPICALLY SHOW PROJECT PROGRESS, WHERE WE ARE IN THE CONTRACTS, WHICH I'LL GET TO IN MY UPDATE.
WE'VE STARTED WORK, BUT DUE TO AGENDA PRINTING TIMES, WE DIDN'T GET THOSE IMAGES IN BECAUSE THEY'VE HAPPENED SUBSEQUENT TO THAT.
SO, JUST A BRIEF OVERVIEW OF JOB ORDER CONTRACTING.
IT IS AN ALTERNATIVE PROCUREMENT METHOD TO OUR DESIGN BID BUILD.
THERE'S A POLICY THAT WE HAVE IN PLACE.
IT'S FOR WORK THAT BASICALLY IS OVER 50K.
SO IN TERMS OF HOW WE CHOOSE JOB ORDER CONTRACTING JOB ORDERS, IT'S ALREADY DETERMINED THAT THIS IS WORK THAT WE WOULD DO CONTRACT WISE ANYWAYS, PARTICULARLY.
WE PUBLICLY BID JOB ORDER CONTRACTING.
IT IS A FIXED PRICE, INDETERMINATE QUANTITY.
WHAT THAT MEANS IS WE HAVE A CONSULTANT, THE GORDIAN GROUP, WHO WE HAVE GOTTEN UNDER CONTRACT THROUGH AN RFP PROCESS TO HELP US CREATE A CONSTRUCTION TASK CATALOG, WHICH HAS PREVAILING WAGE AND LOCAL MATERIAL COSTS THAT THEN THEY PROVIDE IN A DOCUMENT THAT BECOMES PART OF OUR CONTRACT DOCUMENTS.
AND THE CONTRACTORS THAT WORK FOR US OR PUT BID FOR US, BID AN ADJUSTMENT FACTOR TO THOSE PRICES.
SO WE'VE AWARDED NINE CONTRACTS.
THE BOARD AUTHORIZED ENTERING INTO THE NEW ROUND OF CONTRACTS ON JUNE 16 BOARD MEETING.
AS WE HAVE DONE IN THE PAST, WE'VE ENTERED INTO NINE CONTRACTS.
THREE ARE GENERAL ENGINEERING, SO THEY CAN DO UTILITY WORK, MASQUERADING.
WE HAVE 3B CONTRACTS WHICH IS BUILDING WORK.
SO THAT'S MOSTLY THEY COULD DO HVAC.
THEY COULD DO PAINTING, THINGS THAT ARE RELATED TO BUILDINGS.
AND THEN WE HAVE THREE SPECIFICALLY PAVING CONTRACTORS.
AND IN TERMS OF THE DIFFERENCE BETWEEN-- WHICH IS ALSO AN A LICENSE, BUT THE DIFFERENCE BETWEEN OUR, A GENERAL PAVING AND OUR A GENERAL ENGINEERING IS THAT WE MAKE THE PAVING CONTRACTORS SELF-PERFORM 60% OF THE WORK.
SO IN OTHER WORDS, WE'RE TRYING TO MAKE THEM NOT HAVE MARKUPS FOR SUBCONTRACTORS AND THINGS OF THAT NATURE.
JOB ORDER CONTRACTING, A LOT OF THE TIMES, IS USUALLY DONE WITH SUBCONTRACTORS, JUST BECAUSE A LOT OF SUBCONTRACTORS CAN'T DO ALL OF THE WORK THAT WE ASK OF THEM.
AND SO SOME OF IT RESULTS IN SUBCONTRACTING.
[01:00:03]
SO AGAIN, WE HAVE THOSE CONTRACTS.THE PARAMETERS OF THE CONTRACTS ARE WE NEED TO OFFER THE CONTRACTORS A MINIMUM OF $50,000 OF WORK, UP TO A NOT TO EXCEED OF $2 MILLION.
AND THESE ARE ANNUAL CONTRACTS.
AND BASICALLY, THE ANNUAL PERIOD BEGINS EITHER AFTER OUR FIRST ISSUANCE OF NTP, WHICH IS NOTICE TO PROCEED ON OUR PROJECT.
AND WE GET TO THAT AFTER WE'VE GONE THROUGH PRICING AND AGREED TO THE PRICING, AND/OR 15 MONTHS FROM BOARD OF AWARD.
SO THESE CONTRACTS THAT WE'RE GEARING UP ON NOW-- JUNE, JULY, AUGUST, SEPTEMBER-- WILL TURN OUT IN SEPTEMBER OF NEXT YEAR.
SO, TO THAT END, THE BOARD AWARDED THEM IN JUNE.
IT TAKES US A LITTLE TIME TO EXECUTE THOSE.
THEN WE HAVE TO HAVE OUR PRE-CONFERENCE WITH ALL OF THESE CONTRACTORS.
AND SO WHAT THAT ENTAILS IS GOING OUT TO SITE FOR A PROPOSED JOB ORDER, WHICH, AGAIN, HAS BEEN VETTED INTERNALLY.
THAT THIS IS AN APPROPRIATE METHOD TO DELIVER THAT PROJECT OR JOB ORDER.
AND SO THEN, WE MEET WITH THE CONTRACTOR ON SITE, WALK THEM THROUGH OUR PLANS AND SPECS OR WHATEVER WE HAVE IN TERMS OF PROVISIONS FOR THE PARAMETERS OF THAT JOB.
AND THEN THEY BEGIN A PRICE PROPOSAL, WHICH THEN COMES BACK TO THE DISTRICT FOR REVIEW.
AND THAT PRICE PROPOSAL IS BASED ON THE CONSTRUCTION TASK CATALOG, THEIR MARKUP THAT THEY'VE BID, AND THE QUANTITY TAKEOFFS FROM THE PLANS THAT WE'VE GIVEN TO THEM.
SO AT THAT POINT, THERE'S A BACK AND FORTH.
OUR JOB ORDER CONTRACTING-- OUR JOB ORDER CONSULTANTS HELP US WITH THAT REVIEW.
AND THEN THE PROJECT MANAGER TAKES THAT ON AND REVIEWS THAT.
AND ONCE WE'VE DETERMINED THAT THAT IS A AGREEABLE PRICE, WE ISSUE THE NTP, AND WORK BEGINS.
AND THEN ALL THE CONSTRUCTION MANAGEMENT IS ON THE PARK DISTRICT.
AND THE GORDIAN GROUP IS ONLY THERE FOR THE PROCUREMENT PROCESS.
THE JOB ORDER LIST IN FRONT OF YOU SHOWS THAT WE ARE IN PRICING FOR A COUPLE OF PROJECTS, AND WE HAVE ISSUED NP FOR FOUR PROJECTS WHICH HAVE BEGUN.
AND I WILL BRING PHOTOS NEXT TIME I'M HERE TO SHARE WITH YOU I THINK THAT COVERS MOST EVERYTHING.
I'M HAPPY TO ANSWER QUESTIONS THAT YOU ALL MAY HAVE.
DENNIS WAESPI: THANK YOU, REN.
ANY QUESTIONS, COMMENTS FROM THE? BOARD? COMMITTEE MEMBERS? JOHN MERCURIO: JUST A COMMENT.
I UNDERSTAND THE VALUE OF THIS TO GETTING THINGS DONE.
I MEAN, IT'S PRETTY EFFICIENT.
I'M JUST CONCERNED ABOUT IF YOU MAKE IT TOO EASY TO GO OUTSIDE THAT WE'RE LESS LIKELY TO USE OUR OWN FOLKS FOR WORK.
SO, IT VASTLY SIMPLIFIES USING OUTSIDE HELP.
REN BATES: UNDERSTOOD, NOTED, DIRECTOR MERCURIO.
I THINK THERE'S AMPLE WORK AT THE DISTRICT TO PROVIDE FOR BOTH.
I THINK FROM MY POINT OF VIEW, I HEAR THAT CONCERN.
EASY IS AN INTERESTING ADJECTIVE.
I DON'T KNOW IF ANYTHING IS TRULY EASY IN TERMS OF DELIVERING PROJECT.
I THINK THERE ARE PROCEDURES THAT WE HAVE TO GO THROUGH THAT ARE A POLICY FOR THE BOARD, FOR THE DISTRICT ITSELF.
AND SO IT'S NOT THAT WE DON'T-- WE FOLLOW ALL THESE POLICIES TO GET TO A POINT WHERE WE CAN MAKE IT "EASIER." BUT WE'RE NOT BYPASSING ANYTHING THAT PRECLUDES THAT.
AND I HEAR THAT IT DOESN'T ALLOW US TO USE OUR INTERNAL STAFF.
I THINK PART OF IT IS AS SOME OF THESE PROJECTS ARE MUCH LARGER THAN THE INTERNAL STAFF COULD DO, AND THAT'S SPELLED OUT BY THE $50,000 CONTRACT LIMIT.
DENNIS WAESPI: ELIZABETH, ANY-- SO, REN, YOU BROUGHT UP A GREAT SUBJECT.
SO, THE WAY THIS ALL GOES SOUNDS SMOOTH.
SO, IF I WENT OUT TO, LET'S SAY, THE CXT SITE WORK AT PORT COSTA.
I BROUGHT THE CONTRACTOR INTO SOMEBODY FROM THE GORDIAN GROUP COME OR-- REN BATES: YES.
DENNIS WAESPI: THEY JUST MAKE THE BOOK.
YOU GUYS HAVE DONE YOUR PRELIMINARY STUFF, SAY, THE SITE WORK'S GOING TO TAKE 10 HOURS TO WITH THE EQUIPMENT.
AND IT'S ALL LISTED, AND 10 HOURS IS GOING TO COST THIS MUCH.
WHAT IF THE CONTRACTOR SAYS IT'S GOING TO TAKE 20 HOURS? REN BATES: THAT'S WHERE WE GET INTO A BACK AND FORTH.
DENNIS WAESPI: AND SO IT'S LITERALLY A NEGOTIATION.
REN BATES: YES, IT'S A NEGOTIATION.
AND I THINK IT'S NOT NECESSARILY ON OURS.
IT'S MORE ABOUT QUANTITIES AND WHERE WE CAN DO TAKEOFFS IN TERMS OF AMOUNTS.
WE CAN'T NECESSARILY GET INTO HOW MANY-- THE HOURS, WE CAN'T CODIFY, BUT WE CAN TRACK.
AND SO THAT'S WHERE WE GET TO, YES, THIS IS HOW MUCH TIME IT TOOK, AND THIS IS HOW MUCH WE PAID YOU.
THAT SAID, IF WE GO OVER, THERE ARE DEDUCTIVE SUPPLEMENTALS.
SO IF THERE'S WORK THAT'S NOT DONE, WE CAN GET THAT CREDIT BACK.
AND WE TRACK THOSE ACCORDINGLY.
SO THE WORK THAT IS-- AGAIN, WE ARE MANAGING THESE CONTRACTORS.
WE'RE NOT JUST CUTTING THEM LOOSE.
WE'RE MANAGING THEM DURING CONSTRUCTION.
WE'RE MAKING SURE THAT THEY'RE FOLLOWING THE PLANS AND THE PRICE PROPOSAL THAT THEY'VE GIVEN US.
[01:05:02]
AND THAT'S WHAT WE DO.DENNIS WAESPI: AND JUST AS A POINT OF INTEREST, WE'VE BEEN DOING THIS FOR 10 YEARS NOW.
REN BATES: I THINK IT'S CLOSER TO MAYBE-- NO, IT'S CLOSER TO EIGHT.
DENNIS WAESPI: SO IN ALL THOSE EIGHT YEARS, DO YOU EVER HAVE A CONFLICT OR DISAGREEMENT TO WHERE THEY JUST GO, HECK WITH IT, WE'RE NOT GOING TO DO IT, AND WE'RE LEAVING, OR CAN YOU DO A SOLUTION? REN BATES: SOMETIMES, THAT HAPPENS, YES.
THAT HAS HAPPENED NOT IN THE RECENT PAST.
BUT WHEN WE STARTED OFF, WE'VE HAD CONTRACTORS THAT BID BELOW ONE.
SO IF YOU TAKE THAT OUT, THAT'S BELOW COST, BASICALLY.
AND SO, THAT'S WHERE WE GOT INTO LOTS OF ISSUES WITH THAT.
AND SO NOW, WE'RE VERY CLEAR IN OUR PRE-BID CONFERENCE, WHICH WE HAVE A MANDATORY PRE-BID CONFERENCE BEFORE.
WE GO OUT TO BID TO SPELL OUT THE PARAMETERS, WHAT WE'RE LOOKING FOR IN CONTRACTORS.
AND I THINK WE'VE TIGHTEN THAT UP.
AND EVEN TO THAT END, WE STILL GET TO A POINT WHERE WE'RE LIKE, WE DON'T AGREE TO THIS PRICE.
AND THEN WE DON'T MOVE FORWARD WITH THAT JOB ORDER OR THAT CONTRACTOR.
AND SO THAT HAS HAPPENED AS WELL.
DENNIS WAESPI: WELL, THANK YOU VERY MUCH FOR YOUR PRESENTATION.
I THINK THIS IS A GREAT PROGRAM.
DENNIS WAESPI: VERY SUCCESSFUL FOR EIGHT YEARS.
REN BATES: I APOLOGIZE FOR NOT HAVING PICTURES.
I KNOW THAT THAT IS THE HIGHLIGHT OF THIS PRESENTATION, SO WE'LL GET SOME NEXT TIME.
ANY PUBLIC COMMENT? HEARING NONE.
THANK YOU VERY MUCH FOR YOUR PRESENTATION.
DENNIS WAESPI: WE'LL MOVE NOW TO THE 2027 PRELIMINARY GENERAL FUND BUDGET OVERVIEW.
ONE OF THE THINGS THAT'S NICE ABOUT DOING MULTIPLE OF THESE PRESENTATIONS IS I HAVE AN OPPORTUNITY TO RECTIFY SOMETHING THAT I OVERLOOKED EARLIER.
IN REGARDS TO THE AUDIT, I WAS NEGLIGENT AND ALSO RECOGNIZING DAVID SUMNER AND HIS STAFF, XIAO NING.
SO I JUST WANTED TO POINT OUT THAT THEY DO A TREMENDOUS AMOUNT WORK WITH THAT, TOO.
SO THANK YOU VERY MUCH, DAVID.
AND THEN WHAT WE HAVE HERE IS, AT LEAST TO MY KNOWLEDGE, A PRESENTATION THAT HAS NOT BEEN PART OF THE OVERALL BUDGET PROCESS.
WHAT I HAVE DONE IN MY PAST, AND I'VE FOUND IT CERTAINLY USEFUL FOR BOARDS, IS WHEN YOU'RE GOING INTO A NEW BUDGET YEAR, IT'S OFTENTIMES VERY VALUABLE TO LOOK AT WHAT HAS HAPPENED IN THE CURRENT BUDGET YEAR AND WHAT IS PROJECTED TO HAPPEN.
A SCORECARD, ESSENTIALLY, IS, IN 2026, WE AUTHORIZED THIS AMOUNT OF BUDGET.
WE ANTICIPATED THIS STRUCTURAL SURPLUS OR A STRUCTURAL DEFICIT.
HOW ARE WE DOING RELATIVE TO THAT PLAN? SO THIS PRESENTATION IS LOOKING AT THE ACTUAL RESULTS FOR 2025, WHICH, IN LARGE PART, WERE GONE OVER BY AMY IN THE EARLIER PRESENTATION ON THE AUDIT TO A MUCH HIGHER ALL FUNDS DEGREE, CERTAINLY.
AND THEN WHERE WE'RE ANTICIPATING 2026 TO LAND, AND THEN FINISHING OFF WITH THE BUDGET OUTLOOK IN 2027.
SO I TEND TO THINK OF THESE AS INCREMENTAL.
SO 2025 ACTUAL RESULTS BUILD INTO THE 26 ESTIMATED RESULTS.
STARTS TO SEE MAYBE EVEN PATTERNS.
AND THAT THEN INFORMS, I THINK, THE BOARD'S DECISION MAKING AND OVERALL ANALYSIS AS TO WHAT TO EXPECT GENERALLY IN 2027.
SO THAT'S MY PREAMBLE ON WHAT YOU'RE SEEING HERE, AND HOPE THAT IT PROVIDES SOME LEVEL OF CLARITY AS TO WHERE THE DISTRICT HAS BEEN AND FUTURE WHERE IT IS GOING.
[01:10:03]
SO AGAIN, WE'LL LOOK AT FIRST THE 25 BUDGET VERSUS ACTUALS, FINAL RESULTS.WHAT WE ANTICIPATE THE RESULTS TO LOOK LIKE IN '26.
AND THEN HIGH LEVEL PROPOSED BUDGET FOR 2027.
SO THE ADOPTED BUDGET IN 2025 STARTED WITH REVENUES OF ABOUT $225 MILLION, ALONGSIDE EXPENDITURES OF 216.5.
SO YOU SEE THE REVENUES THERE, CLEARLY OUTPACING EXPENDITURES.
BUT THE DISTRICT ALSO, IN ITS BUDGET, AUTHORIZED ALMOST $23 MILLION IN TRANSFERS OUT.
THOSE TRANSFERS OUT BEING DOLLARS FROM THE GENERAL FUND THAT ARE BEING MOVED TO CAPITAL PROJECTS FOR THE MOST PART.
SOME MONEY, CERTAINLY FOR DEBT SERVICE ON THE DISTRICT'S PROMISSORY NOTES.
BUT FOR THE MOST PART, THE $22.7 MILLION IS IDENTIFIED CAPITAL PROJECT FUNDING.
AND YOU CAN SEE HOW THE REVENUES BREAK OUT THERE.
THAT 225, OBVIOUSLY, MOSTLY FROM PROPERTY TAXES.
AND THEN THE EXPENDITURES, LARGELY FROM PERSONNEL COSTS.
AND THEN THE TRANSFERS OUT AGAIN, CAPITAL PROJECTS, DEBT SERVICES, AND SOME EQUIPMENT REPLACEMENT.
OVERALL, THEN IN '25, THE DISTRICT STAFF BROUGHT TO THE BOARD AND ANTICIPATED CHANGE IN THE FUND BALANCE OF $13.5 MILLION.
SO A REDUCTION IN THE FUND BALANCE, AGAIN, LARGELY ATTRIBUTABLE TO THE TRANSFERS OUT FOR CAPITAL AND DEBT SERVICE.
SO HOW DID WE ACTUALLY DO AGAINST THOSE PRELIMINARY BUDGET FIGURES? THE REVENUES, YOU CAN SEE THERE.
AND IT WAS GONE OVER AGAIN IN THE PRESENTATION WITH AMY TODAY.
WE HAD ANTICIPATED THAT $225 MILLION.
CAME IN AT $235 MILLION EXPENDITURES.
AGAIN, WE HAD ANTICIPATED 216, CAME IN ABOUT 205.
SO BOTH THE REVENUES AND THE EXPENDITURES, FROM A FINANCIAL POINT OF VIEW, ARE MOVING IN GREAT DIRECTIONS.
WE'RE BRINGING IN MORE REVENUE THAN WHAT WE HAD ANTICIPATED, AND WE'RE SPENDING LESS THAN WHAT WAS ORIGINALLY BUDGETED.
AND THEN FOR THE TRANSFERS OUT, YOU CAN SEE THAT ORIGINAL $22.7 MILLION THAT WAS INCREASED QUITE CONSIDERABLY TO 36.6.
AGAIN, THOSE ARE TRANSFERS OUT LARGELY TO SUPPORT THE BUILDING THAT IS NEARING COMPLETION ACROSS THE STREET.
SO THE BUDGET HAD CHANGE, AGAIN, WHAT WE HAD BROUGHT TO THE BOARD IN THE ADOPTED BUDGET SHOWED IN 2025.
WE ANTICIPATED THE FUND BALANCE TO DECREASE BY $13.5 MILLION.
WHAT ACTUALLY HAPPENED WAS A DECREASE OF $5 MILLION.
SO ABOUT $8.6 MILLION BETTER THAN WHAT WE HAD BUDGETED.
THE BIG CHANGE, PARTICULARLY ON THE REVENUE SIDE, I THINK THE BOARD IS FULLY AWARE.
AT LEAST IN MY TENURE OF 3 AND 1/2 MONTHS, IN A LOT OF THESE MEETINGS, THE DISTRICT HAS CONSCIOUSLY CHOSEN NOT TO BUDGET INVESTMENT INCOME.
AND THAT IS A SIGNIFICANT SOURCE, TYPICALLY BY THE END OF THE YEAR.
IN THIS CASE, IT WAS ABOUT $11 MILLION IN 2025.
SO OTHER THAN THE INVESTMENT INCOME, I WOULD POINT OUT THAT THE DISTRICT'S REVENUE PROJECTIONS ARE REALLY SPOT ON.
THE INFORMATION WE ARE GETTING FROM BEACON ECONOMICS ON THE PROPERTY TAX INCREASES, THOSE ASSUMPTIONS THAT ARE BEING BUILT IN ARE LARGELY ALIGNED WITH THE ACTUAL RECEIPTS THAT WE'RE GETTING FROM CONTRA COSTA AND ALAMEDA COUNTY.
AND THEN ON THE EXPENDITURE SIDE, THE DISTRICT HAS VACANCIES THROUGHOUT THE YEAR THAT IS ATTRIBUTABLE TO THE ROUGHLY $12 MILLION IN EXPENDITURES LESS THAN WHAT WAS ORIGINALLY BUDGETED.
SO, AGAIN, THE TAKEAWAY HERE IS, PARTICULARLY ON THE REVENUE, A CONSERVATIVE BUDGETING STYLE.
WE'RE NOT GOING TO BUDGET INTEREST INCOME.
WE STILL HAVE ALL OF OUR POSITIONS TYPICALLY FULLY FUNDED IN THE BUDGET.
AND THE RESULT BY THE END OF THE YEAR IS $8.6 MILLION POSITION TO THE GOOD THAN WHAT THE DISTRICT HAD ORIGINALLY PROJECTED IN 2025.
[01:15:09]
AND THIS GETS INTO THE MEAT AND POTATOES OF A LOT OF WHAT I TALKED ABOUT WITH THE TRANSFERS OUT.AGAIN, I THINK THIS IS AN IMPORTANT SLIDE IN THAT THE TRANSFERS OUT AND THE FUNDING OF THESE CAPITAL PROJECTS ARE DECISIONS THAT ARE FULLY IN CONTROL OF THE BOARD AND THE DISTRICT.
THESE ARE NOT NECESSARILY ONGOING COMMITMENTS LIKE WE HAVE WITH OUR CONTRACTUAL AGREEMENTS OR OUR REGULATORY EXPENSES.
THESE ARE DECISION POINTS THAT ARE MADE ON AN ANNUAL BASIS THAT THE DISTRICT WOULD LIKE TO FUND X MILLION AMOUNT OF DOLLARS TO THIS PARTICULAR PROJECT.
AND THERE IS CERTAINLY SOME LEEWAY WITHIN THE AMOUNT OF TRANSFERS THAT ARE DONE ON A YEAR TO YEAR BASIS.
AND THEN FOR THE 2026 GENERAL FUND BUDGET, AGAIN, WE'RE REALLY 3/4 OR MORE THROUGH THAT AT THIS POINT.
YOU'LL SEE A LOT OF THE SAME STORY, A SIMILAR PATTERN AS WAS JUST SHOWN IN 2025.
TOTAL REVENUES THAT WERE BUDGETED AT $230 MILLION, EXPENDITURES, 224.
AND AGAIN, THOSE TRANSFERS OUT QUITE A BIT LESS THAN THE PRIOR YEAR.
BUT STILL, $16 MILLION IN TRANSFERS OUT.
AND SO THE BOARD OF ADOPTED A BUDGET IN 2026 THAT ASSUMED THAT THE FUND BALANCE WOULD DECREASE BY A LITTLE MORE THAN $10 MILLION.
AND HOW IS THAT AGAIN SHAPING UP VERSUS WHERE WE ARE PROJECTING FOR THE 2026 YEAR? AGAIN, REVENUES, WE'RE ANTICIPATING ABOUT A $10 MILLION INCREASE OVER BUDGET, LARGELY ATTRIBUTABLE TO, AGAIN, THE INVESTMENT INCOME THAT WE WILL RECOGNIZE THROUGHOUT THE YEAR.
AND THEN THE EXPENDITURES BEING ABOUT $3.5 MILLION BELOW.
AGAIN, LARGELY DUE TO VACANCIES THAT THE DISTRICT-- VACANCY SAVINGS THAT THE DISTRICT IS EXPERIENCING.
AND THE TRANSFERS OUT ARE JUST BASICALLY EQUAL FROM WHAT WAS BUDGETED TO WHAT WE'RE EXPERIENCING AND PROJECTING FOR THE END OF THE YEAR.
SO WHAT THAT MEANS IS WHAT WE HAD ORIGINALLY COME TO THE BOARD AND ADOPTED WAS A DECREASE IN THE OVERALL FUND BALANCE OF GREATER THAN $10 MILLION.
BUT WE ARE ANTICIPATING 2026 TO END FROM A FINANCIAL POINT OF VIEW IN A MUCH STRONGER POSITION THAN THAT.
IN FACT, ABOUT A $3.4 MILLION OVERALL SURPLUS, WHICH WILL INCREASE THE OVERALL FUND BALANCE WITH THE DISTRICT.
SO THE DIFFERENCE HIGHLIGHTED THERE, WHERE YOU'LL SEE THAT $13.6 MILLION BETTER THAN BUDGETED.
THAT'S THE DELTA BETWEEN THE $10.2 MILLION REDUCTION IN FUND BALANCE AND THE ESTIMATED INCREASE NOW OF 3.4.
SO AGAIN, TWO YEARS, 2025, 2026, THE DISTRICT'S PERFORMANCE ON THE FINANCIALS, EXCEEDING WHAT WAS PROJECTED FROM THE BUDGETARY DOCUMENT THAT THE BOARD APPROVED.
AND THIS IS A TWO-YEAR SIDE BY SIDE, AGAIN, WITH THE REVENUES AND EXPENDITURES FOR THE TWO YEARS.
YOU CAN SEE REVENUES 9.3 MILLION ABOVE AND '25.
EXPENDITURES, AGAIN, DOWN IN BOTH YEARS FROM WHAT WAS BUDGETED.
AND THE FUND BALANCE CHANGE SIGNIFICANTLY BETTER THAN WHAT THE BOARD WAS BROUGHT WHEN IT ADOPTED THE BUDGETS FOR THESE TWO YEARS.
SO, SOME OF THE KEY TAKEAWAYS.
AGAIN, THIS IS A PRUDENT BUDGETING.
THERE'S NOTHING INHERENTLY WRONG WITH THE WAY THAT THE DISTRICT'S BUDGET-- IT'S A GREAT WAY TO BUDGET.
IN FACT, THE INVESTMENT INCOME IS A VOLATILE VARIABLE, IS SUBJECT TO END-OF-YEAR ENTRIES BASED UPON FAIR MARKET VALUE.
THERE HAVE BEEN INSTANCES IN THE DISTRICT'S PAST WHERE, BASED UPON THAT END OF YEAR ADJUSTMENT,
[01:20:02]
THE DISTRICT HAS ACTUALLY HAD TO RECOGNIZE NEGATIVE INVESTMENT INCOME, IF YOU GO BACK TO SOME OF THE 2008 FINANCIAL CRISIS YEARS.SO AGAIN, THERE IS RATIONALE FOR DOING SO.
I JUST WOULD POINT TO THE POINT OUT TO THE BOARD THAT AT LEAST IN THE MORE RECENT HISTORY, THAT INVESTMENT INCOME HAS ELEVATED THE OVERALL REVENUE FOR THE DISTRICT AND MITIGATED ANY REDUCTIONS IN THE FUND BALANCE THAT WERE OTHERWISE BEING PROJECTED.
I'LL PAUSE THERE AND SEE IF THERE'S ANY QUESTIONS, OR I CAN CONTINUE.
WE'RE VERY LUCKY THAT WE GET SUCH GREAT INVESTMENT INCOME.
AND BEACON USUALLY PREDICTS THAT.
ARE THEY PREDICTING GOOD THINGS IN THE FUTURE? JONAH NICOLAS: SO BEACON ECONOMICS IS PREDICTING THE PROPERTY TAX INCREASES YEAR OVER YEAR.
SO THEY LOOK AT THE DATA THAT IS GIVEN TO CONTRA COSTA COUNTY, ALAMEDA COUNTY.
THEY MAKE AN ASSESSED VALUE JUDGMENT, PARTICULARLY FOR A YEAR OUT.
IT'S A LITTLE BIT-- THE PARK DISTRICT IS A LITTLE UNIQUE IN THE FACT THAT OUR FISCAL YEAR IS A CALENDAR YEAR.
SO YOU HAVE TO BRIDGE TWO YEARS IN ORDER TO COME UP WITH THE RATE OF INCREASE ON THE PROPERTY TAXES.
SIX MONTHS OF THAT RATE IS KNOWN, THE ASSESSED VALUE THE OTHER SIX MONTHS IS PROJECTED.
SO AGAIN, IT'S NOT A PERFECT SCIENCE WITH KNOWN INCREASES.
BUT THEY, AGAIN, HISTORICALLY, HAVE BEEN EXTREMELY CLOSE.
I ACTUALLY APPLAUD THE WORK THAT THEY DO.
IT'S REALLY COME IN RIGHT WHERE THEY HAVE PROJECTED.
DENNIS WAESPI: THEY'RE VERY GOOD.
I DON'T WANT TO PREDICT-- OR I DON'T WANT TO GET AHEAD OF YOU.
SO WHEN WE PREDICTED THE REVENUES FOR '27 THROUGH '31, IT'S ALMOST LIKE RIGHT AROUND 3% IF I DID MY MATH CORRECTLY.
SO ARE THEY REALLY PREDICTING THAT IT'S GOING TO STAY THAT FLAT? JONAH NICOLAS: YEAH, THE 3% IS FOR THE NEXT TWO YEARS, I WANT TO SAY 2028 AND '29.
IT STARTS TO CREEP UP A LITTLE BIT IN 2030, GETTING INTO THE LOW FOURS.
BUT NOTHING LIKE WHAT WE HAVE EXPERIENCED THE PAST FIVE YEARS OR EIGHT YEARS, WHERE THE YEAR OVER YEAR AVERAGE IS BETWEEN 5% AND 6%.
SO THERE'S BEEN A MARKET DECLINE, BUT STILL INCREASES YEAR OVER YEAR.
JONAH NICOLAS: SO SEGUEING THEN INTO THE '27, THE GENERAL FUND BUDGET OUTLOOK.
TO YOUR POINT, DIRECTOR WAESPI, RIGHT THERE, WHERE PROPERTY TAXES ARE BUDGETED TO INCREASE BY THE 3.22%.
THAT'S ABOUT A LITTLE LESS THAN $7 MILLION IN ADDITIONAL GENERAL FUND REVENUE.
AND AS WE'VE SHOWN, THE INVESTMENT INCOME WILL NOT BE BUDGETED, BUT CAN REASONABLY BE EXPECTED TO BE A FAIRLY SIGNIFICANT FIGURE.
AND THEN STABLE OPERATING ENVIRONMENT.
SO WE'RE NOT REALLY ANTICIPATING SIGNIFICANT CHANGES TO OUR OTHER CORE REVENUE SOURCES OR OPERATING STRUCTURES.
WE'RE BUILDING A BUDGET TO MAINTAIN CURRENT SERVICE LEVELS.
WE WANT TO KEEP OUR PARKS AND TRAILS AND EVERYTHING FOR THE COMMUNITY AS TOP NOTCH AS WE POSSIBLY CAN.
THAT IS CERTAINLY GOING TO BE REFLECTIVE IN THE BUDGET THAT IS BROUGHT TO THE BOARD.
AND THEN REALISTIC EXPENDITURE PLANNING, KNOWN COST OBLIGATIONS, APPROPRIATE CONTINGENCIES, THE BOARD HAS A CONTINGENCY RESERVE POLICY, WHICH WILL SHOW HERE.
AND THE DISTRICT WILL CERTAINLY BE MEETING AND EXCEEDING THAT IN THE 2027 YEAR.
SO IN A HIGH LEVEL, WE'RE ANTICIPATING REVENUE ABOUT $237 MILLION FOR THE GENERAL FUND AGAINST EXPENDITURES OF $232 MILLION.
SMALL AMOUNT OF TRANSFERS OUT.
[01:25:01]
I THINK IT'S BEEN DISCUSSED BROADLY WITH THE BOARD THAT 2027 WOULD BE A YEAR IN WHICH LARGE INVESTMENTS OUT OF THE GENERAL FUND INTO THE CAPITAL FUND WOULD BE LOOKED AT WITH INCREASED SCRUTINY.SO THE $4.3 MILLION YOU SEE THERE IS REALLY FOR THE DEBT SERVICE PAYMENTS ON THE DISTRICT'S PROMISSORY NOTES, OVERALL RESULTING IN A CHANGE IN THE FUND BALANCE OF APPROXIMATELY $600,000 TO THE GOOD.
AND THESE NUMBERS, OBVIOUSLY, I WOULDN'T BE AN ACCOUNTANT IF I DIDN'T SAY ALL SUBJECT TO CHANGE.
BUT THIS IS A LARGELY WHERE WE'RE ANTICIPATING LANDING FOR 2027.
DENNIS WAESPI: PARDON ME FOR NOT FOLLOWING THIS CORRECTLY.
SO THE CHANGE IN FUND BALANCE IS 600,000 ESSENTIALLY.
BUT WHERE DOES INVESTMENT INCOME FIT INTO THIS? JONAH NICOLAS: SO THE INVESTMENT INCOME IS, AS IT HAS BEEN IN PREVIOUS YEARS, NOT BUDGETED.
DENNIS WAESPI: SO IN ADDITION TO.
DENNIS WAESPI: IF WE HAVE A GREAT YEAR, AGAIN, IT'S 11.6 MILLION.
DENNIS WAESPI: AND I KNOW WE SHOULDN'T TALK ABOUT THIS.
BUT I MEAN, THE VACANCY RATE, WOULD YOU SUGGEST THAT-- I MEAN, IT WAS SOMETHING LIKE $3.5 MILLION.
AND I DON'T KNOW IF YOU'RE THE EXPERT ON THIS.
BUT IS OUR VACANCY RATE HIGHER THAN NORMAL OR-- AND I KNOW WE IN PAST ADMINISTRATIONS, WE TALKED ABOUT A BUILT-IN VACANCY RATE THAT YOU DON'T EVEN DEAL WITH.
BUT I MEAN, OBVIOUSLY, WE MADE SOME CASH OFF THE DEAL.
AND OBVIOUSLY, PHILOSOPHICALLY, WE DON'T WANT TO HAVE VACANCIES.
HERE, WE WANT TO BE AT FULL STAFF AND WANT TO OPERATE FULL STAFF.
BUT-- JONAH NICOLAS: I CAN AT LEAST GIVE SOME COMMENTARY ON THAT.
SO TO YOUR POINT, IT IS MY UNDERSTANDING THAT THE VACANCY RATE WITHIN THE DISTRICT IS-- I DON'T KNOW IF IT'S AT AN ALL TIME LOW, BUT IT IS LOW.
THE HUMAN RESOURCES DEPARTMENT HAS REALLY DONE YEOMAN'S WORK ON GETTING THE JOB ANNOUNCEMENTS OUT, WORKING THROUGH THE RECRUITMENT PROCESS.
ANECDOTALLY, I HAD HEARD, DIRECTOR WAESPI, THAT PUBLIC SAFETY WAS PRETTY MUCH 100% STAFFED RECENTLY.
THAT'S A LARGE DIVISION WITHIN THE DISTRICT.
SO I THINK THERE'S BEEN CERTAINLY PROGRESS ON LOWERING THE OVERALL VACANCY RATE.
TO YOUR SECOND POINT, THE DISTRICT DOES BUDGET VACANCY RATES WITHIN ITS OVERALL BUDGET.
IT HAS BEEN HISTORICALLY A PERCENTAGE THAT IS SPREAD ACROSS ALL DIVISIONS EQUALLY.
WHAT WE'RE DOING IN THE '27 BUDGET IS BEING A LITTLE BIT MORE STRATEGIC THAN THAT.
CERTAIN DIVISIONS JUST DON'T HAVE THE VACANCY RATES THAT OTHER DIVISIONS DO.
THE LEGAL DEPARTMENT, THEY'RE FULLY STAFFED.
THERE'S THE EXTERNAL AFFAIRS DEPARTMENT HAVE, IN TERMS OF FTE, FAR FEWER THAN, SAY, OPERATIONS OR PUBLIC SAFETY.
SO THE VACANCY RATES ARE BEING LOOKED AT A HISTORICAL RATE AMONGST THE DIVISIONS.
AND AN APPROPRIATE RATE IS THEN BEING APPLIED.
TO YOUR POINT, AGAIN, YOU CAN SEE THOUGH, EVEN WITH THOSE VACANCY RATES, THE DISTRICT HAS STILL COME UNDER ON THE ACTUAL EXPENDITURE SIDE, EVEN BUDGETING FOR VACANCIES.
JONAH NICOLAS: AND THEN FOR THE FUND BALANCE RESERVE, AGAIN, WE WANT TO MAKE SURE THAT THE BOARD IS COMFORTABLE WITH THE RESERVE LEVELS.
WE HAVE $76 MILLION IN UNASSIGNED OUT OF THE TOTAL OF 90, WITH AN EXCESS THEN RESERVE OF ABOUT $14.3 MILLION.
SO I THINK THIS SLIDE IS IMPORTANT BECAUSE PEOPLE CAN, ON THE OUTSIDE, JUST LOOKING AT THE FINANCIALS, COULD LOOK AND SAY, WOW, THE DISTRICT HAS $155 MILLION IN RESERVES.
[01:30:02]
BUT A LOT OF THAT, 65 RIGHT OFF THE TOP IS RESTRICTED FOR SPECIFIC CONTRACTUAL AGREEMENTS OR OTHER ASSIGNED RESPONSIBILITIES THAT THE DISTRICT HAS.SO IT CANNOT BE USED FOR OTHER PURPOSES.
THE UNASSIGNED PORTION, THE VAST MAJORITY OF THAT IS TO MEET THE BOARD'S 32% RESERVE OF REVENUE.
AND SO REALLY, OUT OF THAT $155 MILLION, THE EXCESS RESERVE, YOU'LL SEE THERE, IS 14.3.
SO IT'S A LOT OF OVERALL LARGE DOLLAR AMOUNT FOR RESERVE.
BUT WHAT IS ACTUALLY AVAILABLE FOR USE IS A NUMBER THAT IS QUITE SMALLER THAN THAT 155.
DENNIS WAESPI: QUESTIONS, COMMENTS? I DON'T KNOW THAT I SHOULD DO THIS.
BUT AS A NEW PERSON AND A PERSON THAT'S BEEN VERY KEYED IN AROUND IN OTHER AGENCIES, IF YOU CAME TO THE BOARD AND SAID, YOU RESERVES ARE INTACT.
I MEAN, 32% OF REVENUES HELD BACK, IT'S A PRETTY GOOD DEAL.
YOU GOT $14.3 MILLION TO DO WITH WHATEVER YOU WANT.
PUT MORE MONEY INTO OPEB, MORE MONEY IN THE PURSE, PUT MORE MONEY INTO WHATEVER OR CAPITAL.
DO YOU RECOMMEND THAT AS THE CHIEF FINANCIAL OFFICER, OR DO YOU SAY, THIS IS A GREAT LITTLE BUBBLE.
I DON'T THINK WE'RE GOING TO GET $11 MILLION EVERY YEAR.
AND THINGS DO CHANGE QUITE RAPIDLY AROUND HERE.
JONAH NICOLAS: SO MAYBE A WAY TO-- PART OF THE WAY THAT I THINK OF IT IS $14.3 MILLION IS, IN TERMS OF THE OVERALL OPERATING BUDGET OF THE DISTRICT, IS PROBABLY ABOUT 6%, MAYBE A LITTLE BIT LESS.
TO THE NOTION OF EXPENDING THAT, EITHER SOME OR ALL, TO GET DOWN TO WHAT THE 32% RESERVE REQUIREMENT IS, YES, YOU COULD USE THAT FOR REDUCING FUTURE PERS CONTRIBUTIONS BY BUYING DOWN YOUR UNFUNDED ACTUARIAL LIABILITY.
BUT IF YOU HAVE NO CUSHION ON THE DOLLARS ABOVE THAT 32%, THEN IF YOU THINK ABOUT IT, EVERY NEW DOLLAR THAT YOU'RE BRINGING IN THROUGH PROPERTY TAXES, 32%, $0.32 ON THE DOLLAR NEEDS TO BE SET ASIDE AUTOMATICALLY JUST TO KEEP THAT RESERVE AT THE 32%.
SO I THINK THAT THAT'S A VERY PRUDENT NUMBER.
I THINK THAT IT'S, CERTAINLY IN MY VIEW, NOT OUTLANDISHLY HIGH.
AND I JUST, GENERALLY, WE'RE FINANCE OFFICERS IS KIND OF WHAT WE DO.
WE HAVE A RETICENCE TO SPEND ONE TIME MONIES IN GENERAL, BECAUSE IT OFTENTIMES CAN BECOME AN ONGOING OBLIGATION.
BUT TO ANSWER YOUR QUESTION DIRECTLY, DIRECTOR WAESPI, I THINK THAT IT'S A VERY PRUDENT RESERVE.
AND I CERTAINLY, AT LEAST NOT ON MY OWN, WOULD ADVOCATE UTILIZING IT FOR ANY PARTICULAR PURPOSE AT THE MOMENT.
DENNIS WAESPI: I'M GLAD TO HEAR THAT.
ELIZABETH ECHOLS: AND JUST A COUPLE THINGS.
SO, AT THE BEGINNING, ACTUALLY, ABOUT A YEAR AGO WHEN WE WERE LOOKING AHEAD AND DOING SOME WORKSHOPS ON BUDGET AND SPENDING, WE THOUGHT THERE WAS GOING TO BE A STRUCTURAL DEFICIT GOING INTO 2027.
AND I SEE THAT, OBVIOUSLY, THAT'S NOT THE CASE.
AND IT LOOKS LIKE BASED ON THE PROJECTIONS THAT-- AND AGAIN, NOTHING SET IN STONE.
BUT WE'RE EXPECTING TO BE OK FOR 2028.
BUT I GUESS MY POINT IS IS THAT THIS IS JUST ANOTHER REASON NOT TO SPEND THE SMALL AMOUNT OF BUDGET OR FUND SURPLUS BECAUSE WE DON'T REALLY KNOW WHAT'S GOING TO HAPPEN IN 2028 AND 2027.
OR REALLY, EVEN IN 2027 FOR THAT MATTER.
BUT I MEANT 2028 AND '29, ESPECIALLY.
ANYWAY, SO IT'S GOOD TO HAVE IT IN CASE WE NEED IT.
BUT I'LL LET YOU GO AHEAD AND TALK ABOUT THAT SLIDE.
BUT THAT WAS JUST MY-- JONAH NICOLAS: YEAH, I APPRECIATE THAT.
AND MAYBE THIS IS A VISUAL ARGUMENT
[01:35:06]
AS WELL, DIRECTOR WAESPI, TO YOUR QUESTION, WITH THE ANTICIPATED LOWER THAN WHAT IS-- IN THE RECENT HISTORY BEEN ACHIEVED IN PROPERTY TAX REVENUE GROWTH.PLUS, THE ASSUMPTIONS OF BRINGING NEW PARKS ONLINE, WHICH IS GOING TO REQUIRE ADDITIONAL FTE.
YOU CAN SEE IN THIS SLIDE, JUST SOME ASSUMPTIONS OF BEACON'S PROPERTY TAX INCREASES OF GOING OUT TO 3.59% IN 2031, COMBINATION OF TWO YEARS.
WE'RE INCREASING OTHER REVENUES BY 2% ANNUALLY, AND THEN EXPENDITURES 4% ANNUALLY, PLUS ADDING ON FIVE FTE EACH YEAR.
YOU CAN SEE THEN WHERE THE TWO LINES START DIVERGING, AND THE EXPENDITURES ALL THE WAY OUT TO 2031 BECOME GREATER THAN $11 MILLION OVER THE PROJECTED REVENUES.
SO THERE'S, AGAIN, MORE REASON IN MY MIND TO BE PRUDENT WITH THE EXCESS RESERVE.
THESE ARE PROJECTIONS THAT GO OUT FIVE YEARS.
IN FIVE YEARS, IF WE LOOKED AT THE ACTUALS, YOU COULD PROBABLY THROW ME OUT OF THE ROOM.
BECAUSE THIS WOULDN'T LOOK AT ALL WHAT HAPPENS.
BUT IT IS BASED ON THE INFORMATION THAT WE HAVE TODAY.
JOHN MERCURIO: MY COMMENT WAS GOING TO BE WHAT DIRECTOR ECHOLS SAID.
ANYWAY, AND I'M NOT SURPRISED BECAUSE MAYBE WE THINK ALIKE THAT WAY.
BUT SPECIFICALLY WHAT I WAS GOING TO ASK YOU WAS, IS THE REASON THAT WE'RE NOT SPENDING THE $14.3 MILLION ON CAPITAL, WHICH IS NOT RECURRING, IS BECAUSE OF THIS FORWARD PROJECTION THAT WE NEED TO BE REALLY CONCERNED ABOUT WHAT'S GOING ON IN THOSE YEARS GOING OUT? JONAH NICOLAS: I WOULDN'T SAY THAT THERE'S A CAUSAL RELATIONSHIP BETWEEN THOSE TWO.
WHAT I WOULD POINT OUT-- AND IT IS A PROJECT THAT THE FINANCIAL AND MANAGEMENT SERVICES IS PLANNING TO UNDERTAKE IN 2027-- IS REALLY A FULL ON OVERVIEW OF WHAT DOLLARS ARE ACTUALLY SITTING IN THE CAPITAL PROJECTS FUNDS TODAY.
THERE'S SIGNIFICANT MONIES WITHIN THE CAPITAL PROJECTS FUNDS THAT HAVE BEEN BROUGHT OVER THE YEARS FROM THE GENERAL FUND.
IT WOULD BE MY THOUGHT TO TAKE INVENTORY OF THOSE DOLLARS THAT ARE ALREADY WITHIN THE CAPITAL FUND.
SOME OF WHICH ARE ASSIGNED TO PROJECTS THAT HAVE BEEN LARGELY DORMANT FOR A NUMBER OF YEARS.
AND PRIOR TO THEN BRINGING OVER ADDITIONAL DOLLARS FROM THE GENERAL FUND, LOOK AT REALLOCATING OR REPURPOSING POTENTIAL DOLLARS THAT ARE CURRENTLY SITTING IN THE CAPITAL FUND.
JOHN MERCURIO: THAT MAKES SENSE.
JONAH NICOLAS: SO WHERE DO WE GO FROM HERE? YOU CAN SEE THE BUDGET REVIEW SCHEDULE.
WANTED TO BE SURE TO SUNSHINE THIS TO ALL OF THE COMMITTEES.
REALLY TRYING TO MAKE THIS AS TRANSPARENT A PROCESS AS POSSIBLE.
THIS PRESENTATION THAT YOU'VE SEEN TODAY WILL BE DELIVERED TO THE PARK ADVISORY COMMITTEE ON OCTOBER 26.
FOLLOWING THAT, I WILL BE BACK HERE FOR THE FINANCE COMMITTEE MEETING ON NOVEMBER 12, WHICH WILL HAVE A SUBSTANTIVE 2027 BUDGET BOOK.
WE'RE GETTING VERY CLOSE TO HAVING A PROPOSED BUDGET LARGELY FINALIZE THE LARGE 400 PLUS PAGE DOCUMENT.
I THINK THAT YOU GUYS HAVE BEEN THAT YOU ARE ACCUSTOMED TO.
THEN IT WOULD GO TO THE BOARD OF DIRECTORS, THE FULL BOARD ON THE 17TH, BACK TO THE PARK ADVISORY COMMITTEE SO THAT THEY COULD REVIEW THE SUBSTANTIVE 2027 BUDGET BOOK.
AND THEN THE ULTIMATE DESIRE IS TO BRING THE BOARD
[01:40:01]
EARLY DECEMBER, DECEMBER 1, A BUDGET FOR ADOPTION FOR 2027.DENNIS WAESPI: ANY QUESTIONS OR COMMENTS FROM BOARD MEMBERS? JONAH, THANK YOU VERY, VERY MUCH FOR YOUR PRESENTATION.
THIS HAS BEEN INCREDIBLY VALUABLE TO ME.
THIS LOOK AHEAD, THIS NEW REVIEW AND OUTLOOK IS, I THINK, A GREAT ASSET.
AND JUST ANOTHER THING THAT THE GRAPHICS ARE INCREDIBLE.
I'VE LEARNED MUCH, MUCH MORE THAN IN THE PAST WHERE I JUST LOOK AT A SHEET FULL OF NUMBERS.
I MEAN, YOU'RE APPEALING TO MY WHATEVER.
BUT I GET TO LOOK AT THE GRAPHICS AND SEE A NICE PICTURE OF A PARK IN THE BACKGROUND.
WHAT DO THESE NUMBERS MEAN? IT MEANS BEAUTIFUL PARKS.
JONAH NICOLAS: TECHNOLOGY IS A WONDERFUL THING.
I WILL NOT TAKE CREDIT FOR DESIGNING ALL OF IT, BUT-- DENNIS WAESPI: WHOMEVER DID IT, IT WAS GREAT.
AND INCLUDING THROUGHOUT THE ENTIRE DOCUMENT.
I LOVE THESE NEW GRAPHS AND PHOTOS AND THINGS LIKE THAT.
WHO'S EVER DOING THAT, WE APPRECIATE IT.
ELIZABETH ECHOLS: YES, I AGREE, THAT THE PRESENTATION IS VERY CLEAR AND VERY HELPFUL.
BECAUSE WE COVERED A LOT OF-- WE COVERED THREE YEARS.
THAT'S A LOT IN THIS SHORT AMOUNT OF TIME.
JOHN MERCURIO: I GUESS IF THIS REPORT LOOKS THIS GOOD, IMAGINE HOW GOOD THE BUDGET DOCUMENTS COULD BE.
ELIZABETH ECHOLS: NO PRESSURE.
DENNIS WAESPI: ANYWAY, ANY PUBLIC COMMENTS? CLERK: THERE IS NO PUBLIC COMMENT FOR THIS ITEM.
DENNIS WAESPI: HEARING NONE, JONAH, THANK YOU VERY MUCH FOR YOUR PRESENTATION.
AND THANK YOUR STAFF FOR ALL THE WORK THEY'VE DONE.
DENNIS WAESPI: WE'LL MOVE NOW TO ANNOUNCEMENTS.
DOES ANYBODY HAVE ANY ANNOUNCEMENTS FOR THE GOOD OF THE ORDER OR ANYTHING ELSE? HEARING NONE, WE ARE ADJOURNED AT 12:17.
* This transcript was compiled from uncorrected Closed Captioning.