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All right. Good afternoon, everybody. Good afternoon, Sioux Falls, and welcome to the informational meeting of Tuesday, November 28th. We do have a quorum of members present today. We will begin with any Councillor Remarks. Councilmembers, Councillor Beringo.

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I have a few things, first of all, tonight at 5.30 at Jefferson High School is Family Park Open House.

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It's a second open house, I'm going to be attending that.

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I think they're going to be talking about some concepts and things that parks has come up with in the consultant regarding the future of Family Park.

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There's a lot of public interest between off-leash dog park users and people that live in the area.

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And it was one of the most well-attended I've seen in a long time and I expect tonight to be no different.

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The other thing I wanted to bring up, which was very, very interesting, this was on October 31st.

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There were two cases heard by the United States Supreme Court that relate to us.

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And for four of us, the decision is probably going to come down as we're coming out the door or we're gone.

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So it's not going to be terribly helpful to us, but for everybody else, it's going to be very interesting.

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And they both centered around whether a public official engages in state action subject to the first amendment by doing certain things on social media.

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One of the cases involved school board members who blocked a few people and those people sued them because they were posting to their Facebook page what they considered negative or

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and then in another case, there was a city administrator who had a personal page and he converted it to a regular page, and then he had somebody who was posting negative things about him.

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And so he deleted those comments and he blocked that user. And those were in two different circuits. And there were different decisions. There's been like four different circuits that have ruled in different ways.

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and really what it comes down to is, and it isn't just for elected officials, it's also for government employees, and if you go to black people, they talked about a lot of hypotheticals that are not just, so it'll be interesting to get some guidance when those rulings come down as to what that means for elected officials and city employees.

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Thank you.

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Thank you, Councillor Neitzert. Any other comments from Councillors?

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Today, first I'm going to call on Councillor Jensen to welcome some special guests that we have today.

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Thank you, Mr. Vice. Of political and commercial affairs at the Consulate General of Israel to the Midwest.

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He was appointed to this position in Chicago in July of 2022.

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In this diplomatic position, Biron oversees outreach to the business community

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and elected officials in nine of the Midwestern states in his region, including South Dakota.

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So that's why he's here today.

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Earlier today, he met with the Chamber.

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He'll be meeting with other community members as well and the Jewish community here in the

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city of Sioux Falls.

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So with no further ado, we have Etai Baran, who's going to give us a brief update of what's

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going on.

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Thank you.

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Sorry.

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Ladies and gentlemen, council members, thank you very much for having me here today.

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It's my honor and pleasure to be here.

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My name is Itaib Iran, I'm the Council for Political and Commercial Affairs in the Israeli

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Council to the Midwest.

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I'm in Israeli as you probably hear.

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And I'm here for two reasons.

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First, to show my gratitude to the city of Sioux Falls and the great state of South Dakota,

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of the unwavering support that we got from South Dakota,

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from the city of Sioux Falls.

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These are challenging times for Israel.

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October 7th was the deadliest day for Jews since the Holocaust.

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More than 1300 Israelis were murdered, butchered.

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On October 7th, 156 people still held hostage.

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still held hostage in Gaza, including babies, toddlers, kids, elderly and Holocaust survivors.

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This support is important to us, gives us the power and the strength to cope and to do whatever we can to protect our people in Israel.

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We saw it from Chicago, we saw it from Tel Aviv, Jerusalem, Highfine, Israel, all of the

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supports that we got from here, from South Dakota, from the governor, elected officials,

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congressmen, the beautiful, beautiful, you had here in Sufalse and thank you for a council

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man, Rich McCorris and hope that I said it right.

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It's really important to us and I wanted to share, to show our gratitude.

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second thing is to share some information about our activity, the consulate activity here in South Dakota in the Midwest in general about business opportunities.

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I've already shared it with the chambers but I think it's very important for you to know as well.

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So as mentioned before we covered nine states here in the Midwest all the way from Michigan and Indiana all the way to the

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the code is in Nebraska, each and every state is very different from each other, I have to say,

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but we believe that the potential is unlimited, the business potential, the economic potential,

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and our job, our role is to build those bridges between Israel to South Dakota.

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We focus on several sectors, ag tech, food tech, health, cyber security,

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water and so on, I think that the opportunities, the number of fields that we can cooperate

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and partner in are unlimited and our job is to bring the Israelis over here to know

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South Dakota, to show them the industry, the companies, the organizations and we will do

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that and bring South Dakotans to Israel to see our ecosystem and to make it much, much easier for

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you, for South Dakotans, to work in Israel and to create partnerships. We can facilitate meetings,

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delegations, events and so on and so forth. If you have any questions, I would love to answer

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and thoughts, and ideas, something to do any matter,

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and thank you for that opportunity.

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Thank you.

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Dave, time.

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We'll take questions now from Councillors.

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Any questions for our guests?

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Councilor Nightser.

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Thank you for being here.

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It's an honor.

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My condolences to your country and your people.

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Can you just remind us, what is your current,

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what is 1,000 square kilometers?

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It's about the size of New Jersey.

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If you want to get perspective,

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and make sure some details, the GDP is 560, which is nice.

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So what are your main exports?

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So the biggest exports are obviously high-tech knowledge services.

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This is our most important industry in Israel.

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That's what we are famous of.

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the innovation industry and beside that chemistry,

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pharma, naval services, but I guess the high-tech

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is the most important sector.

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Okay, thank you very much.

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Thanks for coming.

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Other questions?

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Well, I'll see now, and I have one.

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Are there any active trade things taking place

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between South Dakota and Israel right now

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in any specific areas?

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Yes, there is. I think the export and the import both are about $8 million, not more than

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that. We are working hard to make much, much bigger. And this cyber security is something

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that we are focused on, but we want to expand it to another fields as well.

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All right, great. Thank you. Thank you for being here today, and thank you for your time.

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Thank you for having me. Thank you.

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Thank you.

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A councillor's just heads up on that as well.

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A South Dakota trade was a big instrument in helping this make happen today and South

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Dakota trade will actually be here for an informational in early January as they're

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building relationships all around the world and helping the economy and Sioux Falls and

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South Dakota and being opportunity for us to learn a little bit more about how we can

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help the economy and the director.

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Pritchard?

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Monthly financial update.

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Happy to be here to present the October financials a little bit later in the month

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and then we typically would be and that was just due to some scheduling issues and needing to get some parks presentations underway and so we moved back to this, to this date, a little bit like ground.

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But in the nature of timing, I'm going to move fairly quickly through this. We have a more walk right into the statistical portion of our presentation, which talking about unemployment, September of 2022.

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to some very much in line with what our expectations

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have been seeing for population growth in our community.

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Unemployment rate continues to remain very, very tight

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at 1.6%, just slightly below the state average

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of 1.8%, we're hovering at about less than half

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of the national average, which is currently 3.6%

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as of September 2023.

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Inflation improved a little bit after being up

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the last couple of months.

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So we came in at 3.2% in October,

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which is down from 3.7% the last month and certainly down from the 9% peak we saw back

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in June of 2022. So seeing some positive things happening there but still not hitting

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that 2% of the federal reserve would like to be in terms of some of our annual inflation

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rates. General inflation as I said was at 3.2% for the last month. If you look at the broken

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down by the different sectors, food cost inflation is continue to drop so that's coming in at 3.3%

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or October, you'll see the energy index going negative 4.5%, so that's been a major driver

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in the overall inflation rate and seeing that come back down.

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And then of course, you're so your core inflation rate, which just loads food and all energy

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which are more volatile coming in, it's still slightly high at 4% and then averaging out

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at 3.2% overall.

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On the building permit side, again, much the same information that we've seen in the past

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few months and throughout this year, through October we've had $964 million in building

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permit evaluations and I believe we've already surpassed the billion dollar mark which

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will be hearing about in the next financial presentation as well as the press that comes

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out from the planning and development services. While this is down, compared to last year

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clearly that was an aberration for a year so we've tried to be more comparative to what

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we were two years ago which was a more normalized year and overall we still remain slightly up

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from where we were two years ago.

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New residential continues to be kind of the story of the day

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with those numbers of permits for homes and single family

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and twin homes being down fairly significantly

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from the numbers we were seeing even two years ago.

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Apartments still seem to be pretty strong

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compared to two years ago, just slightly less

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in terms of total units.

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New commercial, however, is still doing fairly well.

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It's up 32%, or about 156 million

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from where we worked two years ago.

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And that's driven by manufacturing being up 36 million office institutional being up 30 million apartments just up slightly at 4 million even though slightly fewer number of units and then other commercial, which would be your, your strip malls and things of that nature is up about $85 million. So still really seeing across the board increases, especially in the non residential sectors locally. As you can kind of take a look at the numbers by the type of housing that's being

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built much the same what you've seen in the previous month. You've seen a significant

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lag in new homes for single families. Twin homes are staying fairly competitive from

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where we've been in the past but still down. And of course apartments down significantly

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from where we were last year but again that was a very different year for us still staying

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fairly consistent with where we were two years ago which was a record year at the time as

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well. As far as sales tax collections you can see we were up just 0.6% in the month

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of October, year to date, we still remain up 3.1%, but we're seeing that hover downward as we've

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seen three months now, I would say lackluster sales tax returns. And we'll get a little bit

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into that here, but as we look at the various industry sectors, if you're looking at the consumables,

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people are still spending money on experiences, restaurants, going out, hospitality, things

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of that nature. So we're still seeing that coming strong, and a 5.3% increase in October,

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and still remain up 8% year to date.

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If you kind of look at it by the industry numbers here,

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the story is much the same what we saw in the prior months.

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You're going to see various,

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what I would say, more business related sectors,

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such as manufacturing, lumber hardware, and garden supplies,

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and then wholesale trade of durable goods,

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which is probably our most significant sector,

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especially in the business side,

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all consistently being down here over the last several months,

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whereas the consumer ones of eating establishments

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still up 9% remote retail sales, up 10%, department stores still up fairly strong at 3%.

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So the consumer is still buying, but we're certainly seeing that softness occurring with

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the economic kind of slowdown impacting our business sectors more so.

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Lodging taxes were up 11.6%.

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I think that's more of a derivative of some timing issues.

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The lodging should have been up in the prior months I believe as well if you're looking at

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the occupancy numbers.

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The red part which drives that lodging tax.

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So I think there's some timing in this but still slightly positive I think on a trending overall basis

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You'll see occupancy down just slightly which drives the bid tax

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So you can see we've been negative here for the last three months

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So slightly lower occupancy, but as far as revenue per average rate because of the higher rates still coming in as slight growth

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Overall you can see from a revenue standpoint

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We are 78% collected on our expectations for revenues for this year with two months remaining in the year

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That's slightly lower than the 81% we were at last year, however we were getting very robust

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sales taxes last year, and of course that has become much more mediated for this year.

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Property taxes certainly coming in within our expectations, licensing's a permit still

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strong, but below where we were last year, but overall from revenue standpoint, no concerns

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at least as it relates to the budget year for 2023.

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And then on the expenditure side, we are 77% expended through this portion of the year compared

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They're 72% the prior year.

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Much of that, again, driven by the snow expenditures

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that we had in the earlier part of this year.

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Fortunately or unfortunately, we haven't incurred much of that.

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This year so far, and we'll kind of see

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how the last two months of the year go,

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that we wouldn't have to utilize some of the additional

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appropriations so that this body approved

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in order to make sure that we were meeting

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the resident expectations for snow removal.

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But overall, it's been pretty light here

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over the last couple of months.

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And again, on the expenditure side,

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that no areas that present a major concern for us at this point.

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So with that, I'm happy to answer any questions you might have.

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Thank you.

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Councilor Chair.

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I appreciate that.

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If you look at that 2022 December, where is 41 million, and you can maybe help me, was

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that inflated because of snow?

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Why was that inflated so much?

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Yes.

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Well, part of that could be snow, and then part of it is just your end-of-year accruals

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was your trueing up expenditures, but a lot of it was, I think, related to snow.

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There was a lot of even bills that were coming into January.

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And if I were, that got back dated into December, because they were related

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to those snow events that came around Christmas time of last year.

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And then in March of 2023, was that also snow?

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That I am not sure for 23 if it was significantly higher there from that.

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Some of it depends on when we schedule those transfers.

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We have various transfers that go up.

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We've shifted some of that more earlier in the year rather than in later parts of the year.

223
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Are you feeling like we're in line with two months to go?

224
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I feel at this point that I don't have any serious concerns, especially with the additional funds that we've appropriated.

225
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And unless we have significant weather changes in terms of moisture that they're predicting, I think we'll be fine through the rest of the year,

226
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especially with the additional funds that we hopefully we won't need to utilize, either the contingent or those that were appropriated.

227
00:20:10,360 --> 00:20:11,500
Thank you. Thank you for the report.

228
00:20:11,960 --> 00:20:16,120
I failed to mention there was two requests made at last month's presentation.

229
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One related to where we were on vehicle shortages and parts shortages.

230
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And so I did have Scott Russ come with me who is our purchasing manager and he was going to address that.

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The second topic that was asked about was come to review a public parking from Councillor McCorris.

232
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And I did ask him if we could defer that until next month, just relative to everything we have an agenda to cover today.

233
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So if you pardon me, I'm going to ask Scott Rust if he would come up and give you a little

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bit of update on the parts piece as well.

235
00:20:46,590 --> 00:20:47,290
Thanks, Sean.

236
00:20:47,970 --> 00:20:48,310
City Council.

237
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Thank you.

238
00:20:49,870 --> 00:20:50,430
Good question.

239
00:20:50,490 --> 00:20:50,770
Ask.

240
00:20:51,330 --> 00:20:55,950
We're right out with a vehicle and parts shortage for 2023 yet end 2024.

241
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Obviously, if you for this year is impacted both vehicle and parts availability.

242
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Impact impacts are obviously being felt SUVs, heavy duty trucks, vans, et cetera.

243
00:21:08,910 --> 00:21:36,450
There continues to be a part shortage, where there were three suppliers for manufacturers, there's now one, and so we're dealing with some of that, but they're also at the mercy of those suppliers, and there's also some quality concerns that these manufacturers are dealing with trying to bring on new suppliers, so I don't see that problem getting any better any time real soon, so we'll plan ahead and I'll elaborate on that here a little bit later.

244
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But body repair parts, same situation, you know, lead times are longer than normal.

245
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The city's contracted vendor that we use for auto body repairs is really done on what

246
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I'm going to say a fabulous job trying to plan ahead.

247
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Some of those longer lead time parts that we may need for patrol cars and those types of

248
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things are being stock, so we're not waiting for those trying to shorten that time window

249
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up for those types of repairs.

250
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Dealer warranty repairs are also taken a lot longer than what we'd expect.

251
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So for example, typically we get our patrol cars in and out in three days, and now it's taken seven.

252
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So we're working with the dealer on that, but again, it's the supply chain that they're waiting on.

253
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Over in fleet management, I talked to our parts workers the other day and they're saying,

254
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instead of getting OEM parts, we're relying on many of our aftermarket parts suppliers to help us out in the need if we can't get OEM parts.

255
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So that's that's you know bridge that gap there so they don't really feel it

256
00:22:34,530 --> 00:22:37,330
There's too much of an issue there in 2024, you know

257
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What's that kind of what's that kind of look like I think we're going to have a lot of lingering effects from the strike

258
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And the supplier shortage

259
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Currently, you know, the city buys a majority their vehicles off the state bid

260
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Availabilities of these models again this year. This would be the third straight year

261
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There are some that are going to be there, but again, we're forcing the, it's forcing the hand of the procurement team to solicit bids for vehicles that are not available and then buying vehicles that are available sometimes in dealer lots.

262
00:23:10,770 --> 00:23:22,650
So we'll continue to watch that, but again, it's something that does concern me a little bit, but there are not a lot of vehicles that we need to buy this year, so I think we're going to, we're going to be okay.

263
00:23:22,650 --> 00:23:28,130
Okay, one of the things I think you should know about the 2024 Police Interceptor Order

264
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Bank has closed, that was by design by Ford, Ford went ahead and gave dealer pricing

265
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or should be giving dealer pricing here to this next month for the 2025's, they're releasing

266
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a brand new model, and I'm also being told that hybrids will be available.

267
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If you remember right, we basically shuttered the hybrid idea for at least a year, well,

268
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they're going to be available this next year.

269
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So I think we will try and bid our hybrid models this year.

270
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So we plan on doing that in January.

271
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Hopefully for delivery late 24 early 25 is what I'm thinking.

272
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Currently, we've got 15 of the 2020, 2022 police

273
00:24:09,810 --> 00:24:13,270
interceptors that they have been received down at fleet.

274
00:24:13,390 --> 00:24:16,050
We've got 18, 20, 23s that have been built.

275
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And this is not shipped to the dealer.

276
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We've also ordered two F-150s for the K-9 and patrol units, which we do believe will be delivered this year.

277
00:24:26,350 --> 00:24:31,770
Works has begun by the procurement team to really figure out how we're going to attack this year.

278
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We'll work on a plan, we'll work with fleet management, and we'll do our best to get everything prepared that we possibly can as close to the specifications that they need.

279
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Looking ahead, I really think we're going to see fleet allocations improve right now.

280
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a lot of the allocations from the manufacturers go to retail sale, leaving kind of fleet

281
00:24:54,110 --> 00:24:57,270
hanging. And that's what really kind of keeps governments running. We buy a lot of fleet

282
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models. And so we do plan on seeing fleet allocation improve. We're starting to see the retail

283
00:25:03,590 --> 00:25:10,810
sales start to soften a bit. So I'm receiving communications for the big three every month,

284
00:25:10,870 --> 00:25:15,170
and they're providing the updates when order banks are going to open close. And so we can adjust

285
00:25:15,170 --> 00:25:17,470
when we're going to be bidding our vehicles.

286
00:25:18,330 --> 00:25:21,570
So overall, I think we got a good handle on the situation.

287
00:25:22,150 --> 00:25:23,330
It is a lot more work.

288
00:25:24,110 --> 00:25:28,430
And it used to be pretty easy for us to just buy them off the state bid.

289
00:25:29,350 --> 00:25:36,810
But again, we're working diligently to make sure that we do not reduce any service times

290
00:25:36,810 --> 00:25:40,110
or anything like that for people because we don't have vehicles.

291
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And we will have vehicles.

292
00:25:42,910 --> 00:25:44,970
It's just going to take us a little bit longer to get them.

293
00:25:45,990 --> 00:25:46,690
Any questions?

294
00:25:47,450 --> 00:25:47,890
Thank you.

295
00:25:48,490 --> 00:25:48,970
Councilor Stark.

296
00:25:49,790 --> 00:25:50,430
Thank you, Mr. Russ.

297
00:25:50,670 --> 00:25:54,230
One of the other that gives us a good idea on that part of it,

298
00:25:54,250 --> 00:25:58,270
but with the rest of the capital expenditures for the year,

299
00:25:58,370 --> 00:26:00,130
are we holding back on anything?

300
00:26:00,470 --> 00:26:05,130
Or is there anything that seems like there's a lot to be delivered

301
00:26:05,130 --> 00:26:08,430
in the last couple months of the year, which would make sense that we

302
00:26:08,430 --> 00:26:14,810
Yeah, the projects I've worked on and the projects my team has worked on and I think we'll start to see our

303
00:26:14,810 --> 00:26:18,950
We'll go through our open orders report here this month, and we'll see a lot of stuff that hasn't come in yet

304
00:26:18,950 --> 00:26:21,290
You know, I did a project over at the pavilion

305
00:26:21,290 --> 00:26:27,350
It was roughly three quarters of a million dollars and they're telling me and that was like mid-year and they were telling me

306
00:26:27,350 --> 00:26:32,810
It was gonna it was almost a year out before we would see final delivery of all parts and pieces, you know, so

307
00:26:33,450 --> 00:26:37,610
Lead times are just long and we've kind of adjusted to it. It's become the norm

308
00:26:38,150 --> 00:26:41,290
And so we'll get through it.

309
00:26:41,630 --> 00:26:42,910
People just need to be patient.

310
00:26:43,770 --> 00:26:49,190
I know everybody wants their new vehicle to do their job,

311
00:26:49,230 --> 00:26:55,230
that type of thing, and the one that they have has probably been there for at least 12 years or longer sometimes.

312
00:26:55,590 --> 00:26:58,110
So we'll have to be patient.

313
00:26:58,190 --> 00:26:58,810
We'll get through it.

314
00:26:59,230 --> 00:26:59,770
Makes sense.

315
00:26:59,990 --> 00:27:00,330
Thank you.

316
00:27:00,930 --> 00:27:03,250
Other questions for Scott or the director?

317
00:27:05,500 --> 00:27:07,580
I think I've got one for the director, Councillor Branco.

318
00:27:10,060 --> 00:27:16,660
I was curious, you were talking about with the hotel lodging, how it had improved, but

319
00:27:16,660 --> 00:27:22,060
I think what you said was that that may have been an artifact of some previous months.

320
00:27:23,320 --> 00:27:28,080
Were you saying that that was an under-reporting situation or are now correcting?

321
00:27:28,660 --> 00:27:29,980
Yeah, I'm not exactly sure.

322
00:27:30,100 --> 00:27:33,160
I mean, these are numbers we get from the state, but they didn't make sense based on the

323
00:27:33,160 --> 00:27:36,840
Star's data that we have access to in terms of where I see the occupancies.

324
00:27:36,840 --> 00:27:38,520
And if anything, we saw it.

325
00:27:38,740 --> 00:27:42,960
We've seen our revpars maybe not being quite as high as they were in the past to the average

326
00:27:42,960 --> 00:27:47,880
revenue per room, but they were still at most of the time exceeding where we were last

327
00:27:47,880 --> 00:27:52,080
year or two years ago occupancy has just been slightly softer but not materially.

328
00:27:52,600 --> 00:27:52,800
Okay.

329
00:27:53,040 --> 00:27:53,520
That makes sense.

330
00:27:55,000 --> 00:27:55,680
Councillor Star.

331
00:27:57,640 --> 00:27:58,820
I'll turn the microphone on.

332
00:27:59,140 --> 00:28:04,120
So maybe to follow up on that, because again, we'll be looking at some of our requests from

333
00:28:04,120 --> 00:28:10,260
the legislature and state government here shortly around the first of the year, but do

334
00:28:10,260 --> 00:28:16,420
we need to work with the State Department of Revenue to get better information of where

335
00:28:16,420 --> 00:28:21,860
some of this comes from because we hear this quite a bit as a council that we don't get

336
00:28:21,860 --> 00:28:28,740
good reporting or we're missing some of the data or it doesn't make sense or is it a communication

337
00:28:28,740 --> 00:28:37,000
question thing, or is it a need for a change in statute, or just a...

338
00:28:37,000 --> 00:28:42,060
From your point of view, where's the meeting about matters of sub-industry items that

339
00:28:42,060 --> 00:28:46,440
are listed for every municipality and county in the state, and so it's just based on

340
00:28:46,440 --> 00:28:49,340
what they're receiving and the data they're receiving and then they're reporting out.

341
00:28:49,540 --> 00:28:54,500
And so there's probably a qualified explanation as to why it was down, and I didn't expect

342
00:28:54,500 --> 00:28:57,300
it two months ago, and it's up more than it should be this month.

343
00:28:57,300 --> 00:29:02,160
could be a delayed revenue, you know, it could be a delayed receipt from a particular hotel or you know

344
00:29:02,160 --> 00:29:08,600
that's an industry that's prone to a lot of turnover within it and so you might see some that get delayed and

345
00:29:08,600 --> 00:29:14,280
in piling their sales tax revenues and it's catching up in another month so I would say it's probably more that than anything

346
00:29:14,280 --> 00:29:20,280
I think what you're alluding to is the one time when we took a significant audit adjustment and weren't informed of it until

347
00:29:20,280 --> 00:29:25,520
after the fact and that's something that we probably need to have a discussion with I don't think it requires any sort of legislative

348
00:29:25,520 --> 00:29:27,140
of revenue other than just communication.

349
00:29:28,040 --> 00:29:33,660
Yeah, I put a kink in our budget to, well, I remember a couple of times through the

350
00:29:33,660 --> 00:29:38,100
years and some of it is whether it's communication or they didn't see it till they sent us the

351
00:29:38,100 --> 00:29:40,840
money with the transfer and in some of those.

352
00:29:41,000 --> 00:29:45,900
So just curious if there's something that there's a better way that we could get the information

353
00:29:45,900 --> 00:29:46,400
overall.

354
00:29:46,400 --> 00:29:48,740
I think it's tough to look at everything from month to month.

355
00:29:48,740 --> 00:29:51,680
It's better to kind of look what the trend lines look at an average, you know, and not

356
00:29:51,680 --> 00:29:55,360
get to shook up on one month versus another but like if you look at our sales

357
00:29:55,360 --> 00:29:58,700
taxes being negative or near stable or

358
00:30:00,000 --> 00:30:28,520
We are 0% for the last few months. That's certainly a trend line and looking at the industries that are getting impacted the most is showing that softness that I think we kind of probably expect but hope for better. Thank you. Any other questions, the director? I've got one question, director, and one comment, one request. First question, I'm going to sound like a clanging symbol for saying the same thing, and there might be a slow learner. But if I look on page 16 of the financial report for the ARPA dollars and LGA dollars,

359
00:30:28,520 --> 00:30:32,200
Can you help us understand or help me understand at least a little bit?

360
00:30:32,460 --> 00:30:37,580
We've got the remaining commitment on all of these that have not yet been encumbered or expensed.

361
00:30:37,900 --> 00:30:44,500
So for example, $800,000 to the aquarium or butterfly house or 750 to the core neighborhood.

362
00:30:44,960 --> 00:30:50,640
Are those dollars located in the unrestricted cash balance of the general fund?

363
00:30:50,820 --> 00:30:52,840
Or where are those dollars actually located?

364
00:30:53,380 --> 00:30:59,560
So, I mean, most of them are budgeted based on what our expectations are for when those

365
00:30:59,560 --> 00:31:00,400
funds will go out.

366
00:31:00,400 --> 00:31:01,460
They're not necessarily restricted.

367
00:31:01,560 --> 00:31:02,980
They're part of fund balance and typical.

368
00:31:04,200 --> 00:31:08,520
But we budget for them every year, depending on their several of them that we know are probably

369
00:31:08,520 --> 00:31:12,140
going to consistently go out at 300,000 a year and that's what we'll budget for them for

370
00:31:12,140 --> 00:31:12,500
that year.

371
00:31:12,960 --> 00:31:16,300
But they're not, you know, as you look at housing, housing's a little bit different and I

372
00:31:16,300 --> 00:31:19,940
think that's probably where you see a lot of the commitments that are not encumbered yet

373
00:31:19,940 --> 00:31:25,040
because there's a lot set aside for like the home safety and repair emergency repair grant

374
00:31:25,040 --> 00:31:29,740
program and those won't be considered while they're restricted and set aside and program for

375
00:31:29,740 --> 00:31:34,280
that purpose within the housing fund until we actually have a grant application we're obligating

376
00:31:34,280 --> 00:31:40,860
them to they remain unencumbered from a perspective from our standpoint. As far as the butterfly

377
00:31:40,860 --> 00:31:45,940
house it's the only one that I that I in my awareness that one that was held off just due to the

378
00:31:45,940 --> 00:31:49,680
changes relative to the zoo and the butterfly house, that was not funded.

379
00:31:49,800 --> 00:31:55,060
It was out of the operating account a couple years ago and because it expired at the end

380
00:31:55,060 --> 00:31:58,440
of the year, that is just part of fund balance right now and it's not in any way restricted

381
00:31:58,440 --> 00:31:59,300
in those funds.

382
00:32:00,080 --> 00:32:04,380
We're to be obligated, it would have to come from fund balance for that piece, but we keep

383
00:32:04,380 --> 00:32:08,740
it on here because it was part of the original things that have been approved by the Council

384
00:32:08,740 --> 00:32:11,940
to accomplish and just keep it on a radar stream and let it fall off.

385
00:32:11,940 --> 00:32:41,800
All right. Thank you. And then request or comment would be last week we had a presentation from the Director of Parks and Rec and a lot of conversation about the quality of life bond and I counsel can correct me if I was wrong on this, but I sensed unanimous support from the council of trying over the next 30 days, getting a clear timeline from yourself or from the director of parks regarding how does the quality of bond look like regards to elections next year, potential of where that would land and so forth. You believe it would be feasible before the end of the year for us.

386
00:32:41,800 --> 00:32:45,040
I just have a presentation from you on timeline of how that could look.

387
00:32:45,040 --> 00:32:47,940
I think we could probably just extend the finance presentation for next month

388
00:32:47,940 --> 00:32:50,000
and just include it as part of that if that would be okay.

389
00:32:50,540 --> 00:32:51,760
That would be great. Appreciate it.

390
00:32:52,300 --> 00:32:52,760
Thank you.

391
00:32:53,180 --> 00:32:54,740
Well, appreciate your time. Thank you.

392
00:32:54,900 --> 00:32:55,360
Thank you.

393
00:32:56,260 --> 00:32:58,500
We will now move to our third presentation today.

394
00:32:59,060 --> 00:33:02,680
Maybe you're going to start us off there as well, Director Pritchett or Director Ekhoff.

395
00:33:02,840 --> 00:33:04,480
We will start with you on transit.

396
00:33:05,460 --> 00:33:05,700
I

397
00:33:14,150 --> 00:33:16,570
have a new council, Jeff Ekhoff, planning and development services.

398
00:33:17,210 --> 00:33:18,850
Thank you for your time today, as always.

399
00:33:18,850 --> 00:33:25,770
A couple of weeks ago, we came to you on an informational meeting along with Alex DeBoi,

400
00:33:25,930 --> 00:33:33,750
who is the COO via transportation, who is the provider that we have engaged for transit

401
00:33:33,750 --> 00:33:35,490
services in the coming contract.

402
00:33:36,190 --> 00:33:40,750
At that time, we gave you an update and a report of the transition process, what was going

403
00:33:40,750 --> 00:33:42,410
on, the different work streams and all that.

404
00:33:43,090 --> 00:33:47,610
And at that time, we were also very deep into contracting negotiations with them, finalizing

405
00:33:47,610 --> 00:33:53,690
those aspects of the all-important contract for services that will be entering into them

406
00:33:54,380 --> 00:33:55,770
with them for the next five years.

407
00:33:56,890 --> 00:34:02,610
Today we come to you to talk to you more specifically about that contract and Director

408
00:34:02,610 --> 00:34:06,830
Pritchett will go through some of those specifics here in a little bit and then all this is an

409
00:34:06,830 --> 00:34:10,650
preparation of the December 5th meeting where we'll bring the resolution and the contract

410
00:34:10,650 --> 00:34:12,390
to you for approval.

411
00:34:12,850 --> 00:34:18,530
to, in the time I will start in the contract will become effective in January 1.

412
00:34:19,570 --> 00:34:23,970
So before that, because there were some of you work, because cities are not able to

413
00:34:23,970 --> 00:34:28,530
hear, I just want to use some high level overview, just kind of how we got to where we are.

414
00:34:28,970 --> 00:34:32,530
Some of the goals we had with the RFP and also some of the goals we had in our contract

415
00:34:32,530 --> 00:34:34,930
negotiations before I turn it over to Sean.

416
00:34:36,190 --> 00:34:40,950
So just as a reminder, back in June of this year we opened up RFPs, we received those

417
00:34:40,950 --> 00:34:42,170
through August of September.

418
00:34:42,870 --> 00:34:46,630
We had a committee of folks that included representatives

419
00:34:46,630 --> 00:34:50,510
from planning the mayor's office as well as finance.

420
00:34:51,170 --> 00:34:52,910
We had two members from our PTA Board.

421
00:34:53,090 --> 00:34:54,810
The sat on that, two users of the system.

422
00:34:55,010 --> 00:34:56,930
And then, again, thanks to Council for Knights.

423
00:34:57,070 --> 00:34:59,030
It's representing you on that selection committee.

424
00:34:59,590 --> 00:35:00,610
We had in-person interviews.

425
00:35:00,870 --> 00:35:03,910
We had follow-up interviews with the proposals.

426
00:35:04,550 --> 00:35:05,470
And then made our selection.

427
00:35:05,630 --> 00:35:07,150
Made that announcement in June 28th.

428
00:35:07,150 --> 00:35:09,810
would be with the transportation services.

429
00:35:11,810 --> 00:35:16,250
The goals that we looked at, one of the things that really drove us through that RFP process

430
00:35:16,250 --> 00:35:20,170
was we needed to look at somebody that could really reinvent transit for us.

431
00:35:20,390 --> 00:35:25,330
Obviously we're focused on the right of experience, we're focused on the culture of the drivers,

432
00:35:25,590 --> 00:35:29,290
but we really wanted to look at somebody that could help us reimagine transit services.

433
00:35:30,170 --> 00:35:35,990
Come up with a turnkey system for us that would really lead us in transit versus us leading

434
00:35:35,990 --> 00:35:41,430
in them as much. From that, there were several work streams that were created, operations,

435
00:35:41,730 --> 00:35:45,990
marketing, compliance, technology, maintenance, those type of things that we looked at as

436
00:35:45,990 --> 00:35:50,650
we interviewed them, and we really wanted somebody to take a look at making our fixtures

437
00:35:50,650 --> 00:35:56,790
more efficient, and then also really expanding our and demand services from the SADRI service

438
00:35:56,790 --> 00:36:02,890
we have now until more, but they referred to as micro transit. As I mentioned, we made

439
00:36:02,890 --> 00:36:11,550
the selection of VIA, they had a very dynamic presentation, the world leader of public,

440
00:36:11,750 --> 00:36:16,250
they're actually a technology company that's in that transit specialized in the transit

441
00:36:16,250 --> 00:36:16,710
space.

442
00:36:16,890 --> 00:36:22,090
They've got a great depth of experience and then what we really like is very much a writer,

443
00:36:22,650 --> 00:36:27,750
first focus, but also the use of technology and data to make their decisions.

444
00:36:28,550 --> 00:36:31,950
They do have a presence kind of throughout the Midwest, you can see through their maps,

445
00:36:31,950 --> 00:36:39,790
some of the locations they are in, in particular they use high-value transit in Utah as kind of a peer community

446
00:36:39,790 --> 00:36:44,190
and we actually did interview them during the process to hear about their experiences with the

447
00:36:44,190 --> 00:36:50,170
and their ability to grow that. From there we have the select way we went at the contract discussions

448
00:36:50,170 --> 00:36:55,050
over the last few weeks and at this point I would need you to send a thank you to Catherine Slimgan

449
00:36:55,050 --> 00:37:00,270
from the City Attorney's Office who really was our guiding star through that hung in there with us

450
00:37:00,270 --> 00:37:03,330
and it did a lot of work as you'll see an agreement that's in your packet.

451
00:37:05,050 --> 00:37:09,950
So with that, again, we wanted to abroad all inclusive scope of services that are offered

452
00:37:09,950 --> 00:37:14,830
and it includes fixed-well micro transit, pair of transit, but also the ability to take

453
00:37:14,830 --> 00:37:18,970
care of the maintenance, the technology, the compliance and all those other aspects of

454
00:37:18,970 --> 00:37:19,850
transit with us.

455
00:37:20,550 --> 00:37:26,310
You'll see in the contract that there's a couple things about it, it's a unique setting,

456
00:37:26,310 --> 00:37:40,570
It's a master service agreement with service options that Sean will talk about, but we wanted to provide an incentive within their incentive fee structure for a positive employee and writer engagement.

457
00:37:40,570 --> 00:37:53,490
We want, as you'll see, this ability to be flexible, we have a do not exceed them all but within that we need to be flexible as they mix the services and we find the right combination of fixed route and micro transit for that.

458
00:37:53,710 --> 00:37:55,710
So we'll see that flexibility built into it.

459
00:37:56,270 --> 00:38:08,370
And then we really want, there's a portion in there for using VIO's expertise to help us modernize and actually as a consultant to help us come up with the best service for us moving forward.

460
00:38:08,370 --> 00:38:14,290
So with that, I'll turn it over to Sean for more specific questions, and then we as completed

461
00:38:14,290 --> 00:38:16,330
of course will both be available for questions.

462
00:38:16,750 --> 00:38:17,050
Thank you.

463
00:38:25,530 --> 00:38:31,970
All right, diving into the fascinating specific minutiae of the contract terms before you

464
00:38:31,970 --> 00:38:32,210
today.

465
00:38:32,870 --> 00:38:37,610
I do want to make a couple of high-level comments kind of following up on what Director

466
00:38:37,610 --> 00:38:43,030
Eckhart had said as well, just in my own kind of perspective on going through this process

467
00:38:43,030 --> 00:38:45,170
of negotiations on this contract.

468
00:38:45,170 --> 00:38:50,730
I would say it was of the contracts that I've been involved is this has certainly been

469
00:38:50,730 --> 00:38:55,210
the most intensive negotiation on a contract that we've had and it's not because we didn't

470
00:38:55,210 --> 00:38:57,230
have a very solid partner that we were working with.

471
00:38:57,270 --> 00:39:03,450
In fact, I would test that they were very workable with us, but it's a bit like starting from scratch

472
00:39:03,450 --> 00:39:08,070
and starting something entirely new and going through this process with them and I think

473
00:39:08,070 --> 00:39:14,550
I think Director Ackoff would share my respect for having worked with BIA through this process

474
00:39:14,550 --> 00:39:18,570
is you're always looking for partners and I call them partners and not vendors but you're

475
00:39:18,570 --> 00:39:23,130
looking for partners that reflect the values that you have as a city and those tend to

476
00:39:23,130 --> 00:39:27,390
make the best partners and as values for a city we have values of safety, teamwork, innovation,

477
00:39:27,590 --> 00:39:32,430
character and respect and I believe from my experience having worked with them they exhibited

478
00:39:32,430 --> 00:39:36,630
all of these insignificant quantities as we worked through this process and so that was

479
00:39:37,330 --> 00:39:45,530
That was great as part of the experience, but the other thing that I wanted to speak to is that this is very different in terms of a management agreement that we have with our other partners.

480
00:39:45,790 --> 00:39:54,970
And there's some very specific reasons about that because this is a very specific type of service that we're asking them to manage and we're asking them to do it in a very different way perhaps than we've done in the past.

481
00:39:56,430 --> 00:39:57,990
In many ways, it's the same.

482
00:39:58,170 --> 00:40:04,370
If you look at our partners with ASM Global, or the Great Plains Zoo, or Spectra, or the

483
00:40:04,370 --> 00:40:09,730
Washington Pavilion, we have a history and an experience in a successful one at that

484
00:40:09,730 --> 00:40:14,490
of hiring partners that work with us, that we put our faith in and they are to bring us

485
00:40:14,490 --> 00:40:20,630
their industry experience and help advise us on how we should utilize our assets and whatever

486
00:40:20,630 --> 00:40:22,130
assets we happen to be utilizing.

487
00:40:22,130 --> 00:40:28,350
And that was, as Jeff stated, a major goal of this, to be a turnkey operation where

488
00:40:28,350 --> 00:40:32,430
we're not directing traffic, but we're expecting them to advise us.

489
00:40:32,670 --> 00:40:37,010
And then we consent to, you know, the way we work and manage our facilities as partners

490
00:40:37,010 --> 00:40:37,490
with them.

491
00:40:37,810 --> 00:40:41,430
But the reason this is very different is because we're just not managing assets, and we're

492
00:40:41,430 --> 00:40:46,010
managing an entire system, and a system that is going to evolve and be dynamic over time.

493
00:40:46,330 --> 00:40:50,270
And this contract needs to be able to be constructed in a way that allows for that flexibility

494
00:40:50,270 --> 00:41:20,250
for that dynamic ability for a system and an area of service that I believe from a technological standpoint is through innovation is not just going to evolve as it has been evolving here over the last couple of years but maybe even become a revolution in how we handle public transit and we need to have a strong partner that helps us guide and lead through that so that we can have an efficient effective system that gives a very high rate of return for our residents and make sure that we continue to have this important service for our community and residents going for the service

495
00:41:20,250 --> 00:41:22,890
especially for those specifically that rely upon it.

496
00:41:23,470 --> 00:41:24,850
Much like our other management agreements,

497
00:41:25,110 --> 00:41:26,910
this term is, the term of this agreement

498
00:41:26,910 --> 00:41:29,330
is for five years and then there's a five-year extension

499
00:41:29,330 --> 00:41:31,890
exercisable with a consent of both sides.

500
00:41:32,530 --> 00:41:34,570
Structural a little bit differently than our other agreements

501
00:41:34,570 --> 00:41:37,030
where you'd see one just big master agreement,

502
00:41:37,150 --> 00:41:38,890
this consists of really four pieces,

503
00:41:39,350 --> 00:41:41,330
a master services agreement and then there are three

504
00:41:41,330 --> 00:41:43,370
separate service orders that are attached onto it,

505
00:41:43,810 --> 00:41:46,710
including appendices and addendums that go along with it.

506
00:41:46,930 --> 00:41:49,210
So I would echo Jeff's comments

507
00:41:49,210 --> 00:41:51,690
that these were very complex to put together

508
00:41:51,690 --> 00:41:53,650
and really appreciate the City Attorney's Office

509
00:41:53,650 --> 00:41:56,510
and Ms. Schlemman for helping us guide through that process.

510
00:41:57,670 --> 00:41:59,710
And we look at the master services agreement

511
00:41:59,710 --> 00:42:01,970
in terms of what the financial responsibilities are

512
00:42:01,970 --> 00:42:02,830
for each of the parties.

513
00:42:03,330 --> 00:42:04,930
As far as Sioux Falls Transit, again,

514
00:42:05,750 --> 00:42:08,590
the major shift in this being a turn key operation,

515
00:42:09,470 --> 00:42:12,990
the facility maintenance costs up to $2,500 per project.

516
00:42:13,530 --> 00:42:16,210
It will be the responsibility of Sioux Falls Transit

517
00:42:16,210 --> 00:42:17,910
and Sioux Falls Transit is the wholly owned

518
00:42:17,910 --> 00:42:22,810
subsidiary of the VIA, which will be used to manage our facility.

519
00:42:23,490 --> 00:42:27,870
That's not unlike many of the other structures that we have with other managers that we have.

520
00:42:28,270 --> 00:42:32,710
That will be responsible for ground maintenance, no removal, capital equipment purchases, repairs

521
00:42:32,710 --> 00:42:36,330
and maintenance for all of our capital fleet and all technology, and that's a little bit

522
00:42:36,330 --> 00:42:36,730
of a shift.

523
00:42:36,910 --> 00:42:40,890
It's been kind of a partnership and somewhat a responsibility in part by the city to handle

524
00:42:40,890 --> 00:42:42,130
some of the technological pieces.

525
00:42:42,570 --> 00:42:47,430
This shifts now to a turnkey operation where they are responsible for all technology, hardware

526
00:42:47,430 --> 00:42:51,290
we're in software no longer reliant on the city system to networks.

527
00:42:52,450 --> 00:42:54,910
Shared responsibilities will be related to fleet acquisition.

528
00:42:55,110 --> 00:42:57,470
This has previously always been a city responsibility.

529
00:42:57,810 --> 00:42:58,730
We have always bought the buses.

530
00:42:58,930 --> 00:43:02,430
We've always taken care of that piece working junction with our manager.

531
00:43:02,630 --> 00:43:05,370
But in this case, with micro-transit and the evolution with that,

532
00:43:05,770 --> 00:43:09,190
whether we go to smaller bans or we begin leasing bans instead of buying them,

533
00:43:09,490 --> 00:43:13,890
that might be a responsibility of Sioux Falls transit or via as opposed to the city.

534
00:43:13,890 --> 00:43:20,970
When it comes to large buses or any facility maintenance costs above $2,500, those will remain the responsibility of this city.

535
00:43:21,450 --> 00:43:25,610
It's part of the master services agreement, as far as where revenues will go.

536
00:43:25,830 --> 00:43:33,370
So before we basically had an account that we'd shift over to Suerim Metro, where they would pay the expenses out of.

537
00:43:33,450 --> 00:43:37,370
But we were transferred out of our transit fund as needed to help support that account.

538
00:43:37,730 --> 00:43:40,910
They would take in all the fair revenue and utilize that first for paying this.

539
00:43:40,910 --> 00:43:42,670
This is a slightly different approach.

540
00:43:42,990 --> 00:43:46,230
There won't be a separate account we're paying an hourly cost per service.

541
00:43:46,850 --> 00:43:49,470
And so the fair revenue will now be coming into the city.

542
00:43:49,790 --> 00:43:51,530
Those fairs are set by the city council.

543
00:43:52,510 --> 00:43:56,210
Depending on how these evolves over time, it may come back and make adjustments to that.

544
00:43:56,390 --> 00:43:57,790
Do we need a little bit more dynamic?

545
00:43:58,330 --> 00:44:01,870
Do we need a little bit more flexibility, especially as it relates to micro transit?

546
00:44:02,110 --> 00:44:05,810
Probably not so much on fixed route, but those will be things that will come in the future.

547
00:44:06,030 --> 00:44:10,730
But the one thing I want people to know and to reiterate is, this continues the same

548
00:44:10,730 --> 00:44:15,690
services that we've had as is in the short-term period as we move into the various months ahead

549
00:44:15,690 --> 00:44:21,190
we'll be going through a period of kind of review with VIA to determine what changes

550
00:44:21,190 --> 00:44:23,290
could potentially be made and what they would recommend.

551
00:44:23,830 --> 00:44:27,830
As far as sponsorship revenue and marketing we've assigned those over to Sioux Falls Transit

552
00:44:28,410 --> 00:44:29,190
to be utilized.

553
00:44:30,210 --> 00:44:34,850
In the main thing there is it's a fairly insignificant amount of revenue but I think there's opportunities

554
00:44:34,850 --> 00:44:38,830
and want them to incentivize to be able to sell more sponsorships and see what they're

555
00:44:38,830 --> 00:44:43,870
able to materialize from that opportunity. In the master's service agreement, it does

556
00:44:43,870 --> 00:44:48,850
talk about personnel. There's only one non-KIPI provision and that's for the general manager

557
00:44:48,850 --> 00:44:55,990
that VIO would be bringing as part of taking over management of this operation. This is

558
00:44:55,990 --> 00:44:58,510
not unlike what we have in many of us are there a management

559
00:45:00,000 --> 00:45:29,980
I think the intent is to retain most all of the current workers, whether it's on the maintenance, on the driver's side or all the other employees. They will be responsible for all employee relations and oversight, union relations and contract negotiations. The one thing I do want to point out is because of the change in the kind of how we structure the economics of this relationship where they're not operating out of our account, but rather we're paying a service hour. Many of the employees that are coming over are coming over with accrued liabilities in terms of

560
00:45:29,980 --> 00:45:35,720
vacation time and sick time, particularly those that would be paid out at retirement or

561
00:45:35,720 --> 00:45:40,360
upon a separation of services so you can have up to a certain number of vacation hours

562
00:45:40,360 --> 00:45:41,460
and separation of services.

563
00:45:41,460 --> 00:45:45,080
You get a certain amount of sickly paid out if you make it to retirement.

564
00:45:45,720 --> 00:45:52,500
Those liabilities were on the city, really indirectly through our previous transit provider.

565
00:45:53,160 --> 00:45:58,320
So because this now shifts the burden to them, one of the things that we've agreed to in

566
00:45:58,320 --> 00:46:04,620
the agreement is that we would be responsible for any departures and accrued liabilities

567
00:46:04,620 --> 00:46:09,040
that come up to the point where the DIA took over as the responsible part because they

568
00:46:09,040 --> 00:46:10,080
were our responsibilities.

569
00:46:10,760 --> 00:46:17,680
And we're not going to, the whole liability as of December 31st is about $636,000 approximately.

570
00:46:18,340 --> 00:46:20,080
Some of that will never be paid, right?

571
00:46:20,240 --> 00:46:23,340
So if you don't make it to retirement, you may never get your sick leave accrual.

572
00:46:23,340 --> 00:46:30,300
And so there's there's there's a portion of that that would not be that probably never materializes and so what we've

573
00:46:30,300 --> 00:46:34,940
Suggested doing is we're going to place $400,000 into a restricted asset account

574
00:46:36,260 --> 00:46:41,200
Checking a account so to speak and then they would be able to utilize that for paying any accrued leave

575
00:46:41,780 --> 00:46:46,480
For any of these employees on pond separation of services whether it's sick or vacation

576
00:46:46,480 --> 00:46:52,900
It would not be utilized for paying of any vacation or sick leave that occurs while Bia is in under contract

577
00:46:52,900 --> 00:47:00,420
And so really it's just us absorbing some of the liability that we're essentially transferring over to them, which is reasonable, makes sense.

578
00:47:00,620 --> 00:47:18,360
On the opposite side of it, we've also negotiated kind of if we were to terminate services with via our Sioux Falls transit that there's kind of a two year one way on the same deal with them that they have to pay out on those type of liabilities up to $150,000 maximum during that time period.

579
00:47:18,360 --> 00:47:24,540
It's just to make sure that we're not incurring the same liability if we were able to, if we changed providers in the future.

580
00:47:24,800 --> 00:47:31,760
So, hedging against that, as far as the management fee, not unlike many of our other manager, we have a management fee.

581
00:47:32,220 --> 00:47:38,680
In year one, it's about $200,000, which just helps to pay some of their costs for the general manager and some of their overhead.

582
00:47:39,080 --> 00:47:45,320
And that does escalate at a 4% escalator for year two and beyond during the entire term or option term of the contract.

583
00:47:45,940 --> 00:47:48,440
We also built in an incentive management fee.

584
00:47:48,560 --> 00:47:55,020
This is something that we've utilized in other agreements, big believer and incentives to help mobilize them even if they're not significant incentives.

585
00:47:55,340 --> 00:47:59,400
So this is a $50,000 qualitative fee, not unlike how we do with ASM Global.

586
00:47:59,880 --> 00:48:05,880
This one is set and would be determined based on two factors on an annual basis employee and customer satisfaction.

587
00:48:06,320 --> 00:48:12,500
So we'll work with them to develop how they want to handle surveying both their employees as well as customers.

588
00:48:12,500 --> 00:48:17,700
From the technology standpoint, the customer piece should be fairly simple to have to have something for their employees as well

589
00:48:17,700 --> 00:48:20,800
But those are the two considerations. We thought were most important

590
00:48:21,660 --> 00:48:28,280
factors for measurement in terms of the assignment of this fee and the reason being is because if you're doing everything else right your customer

591
00:48:28,280 --> 00:48:35,000
Satisfaction will be high and your employee satisfaction will be high and so all the other metrics kind of fall under these two

592
00:48:35,000 --> 00:48:40,720
When it comes to providing excellent and quality services. So that would be determined. There is it would be

593
00:48:41,360 --> 00:48:44,300
really subjective and determined at the city.

594
00:48:44,720 --> 00:48:46,900
I can tell you how we've done this in the past with ASM Global

595
00:48:46,900 --> 00:48:50,080
is we've had an internal staff that work with ASM every day,

596
00:48:50,260 --> 00:48:53,080
as well as we invite a city council member to participate

597
00:48:53,080 --> 00:48:54,560
and usually a city council staff member

598
00:48:54,560 --> 00:48:55,980
to participate in those discussions

599
00:48:55,980 --> 00:48:58,720
and the assignment of that fee, which is done

600
00:48:58,720 --> 00:49:00,060
after the year closes.

601
00:49:03,040 --> 00:49:05,500
As I noted, so this is a different model

602
00:49:05,500 --> 00:49:07,020
in terms of how we're praying for these services.

603
00:49:07,260 --> 00:49:10,120
So instead of just handing them over our checkbook

604
00:49:10,120 --> 00:49:11,740
and saying, please run our services.

605
00:49:12,560 --> 00:49:17,540
In this case, we are predetermining what we will pay based on vehicle hours.

606
00:49:17,800 --> 00:49:20,220
And so there's a rate per vehicle hour, which will be paid.

607
00:49:20,600 --> 00:49:23,400
And then we have an agreed upon number of vehicle hours and

608
00:49:23,400 --> 00:49:25,380
a not to exceed total that goes along with it.

609
00:49:25,500 --> 00:49:30,020
And these are defined in appendix B within the master services agreement.

610
00:49:30,760 --> 00:49:35,280
A couple of things I want to point out, so you'll see fixed route at about 54,000 vehicle hours.

611
00:49:35,280 --> 00:49:44,020
That's what we're planning for a paratransit at 39,000 hours and that's consistent with our current kind of annualized amount for both of those services.

612
00:49:44,460 --> 00:49:50,100
Micro transit, which we have been calling on demand, but what we've been calling micro transit going forward.

613
00:49:50,580 --> 00:49:55,660
That was a Saturday only service and that was only about 2400 hours a year.

614
00:49:56,760 --> 00:50:04,140
And so what we've just budgeted for or put into the MSA right now is 1200 micro transit at the current rate of 90 dollars an hour.

615
00:50:04,840 --> 00:50:07,220
And that per vehicle hour.

616
00:50:07,620 --> 00:50:11,940
And the reason for that is we would hope that by the time comes, we get to the middle

617
00:50:11,940 --> 00:50:15,980
of next year, we have the analysis that's completed by VIA about our system and their

618
00:50:15,980 --> 00:50:20,340
recommendations that they'll be able to find some cost efficiencies and some suggested

619
00:50:20,340 --> 00:50:24,780
changes that will help on that and then be able, if we choose, to move forward with a more

620
00:50:24,780 --> 00:50:26,320
expanded microtransit model.

621
00:50:26,680 --> 00:50:31,780
And so you'll see there are amounts budgeted for the second half of the year, about 17,000

622
00:50:31,780 --> 00:50:36,840
hours for micro transit and reduced rate of $79 an hour with the expectation that they're

623
00:50:36,840 --> 00:50:41,080
able to leverage that for a reduced cost based on efficiencies such as potentially using

624
00:50:41,080 --> 00:50:45,140
vans instead of the larger mini buses that we're currently using.

625
00:50:45,980 --> 00:50:51,020
Those rates and so forth we did intensive analysis based on our current fee structures to make

626
00:50:51,020 --> 00:50:54,540
sure that we were getting a competitive rate based on what we had been paying in the past

627
00:50:54,540 --> 00:50:59,440
and we felt comfortable with where we landed on the fixed route sides a little bit higher

628
00:50:59,440 --> 00:51:02,740
than maybe where we were at previously, we're a little bit lower on the pair of transit

629
00:51:02,740 --> 00:51:08,240
and the on-demand. But a big reason for that is we are pushing more of our responsibility

630
00:51:08,240 --> 00:51:12,900
on to the other previous, whereas we might have been doing things on a staffing-wise, as

631
00:51:12,900 --> 00:51:16,940
as the city we are now moving toward them and asking them as a turnkey operator that it

632
00:51:16,940 --> 00:51:20,600
be a part of their responsibility as well. You can see the total not-to-excite amount

633
00:51:20,600 --> 00:51:26,040
is $12.2 million, which equates to the amount that we have for operations budgeted for

634
00:51:26,040 --> 00:51:31,700
next year, you'll notice that there's a flexibility built into the contract that will allow us to

635
00:51:31,700 --> 00:51:38,000
shift hours between and rates between some of those services just based on as needs come up over time

636
00:51:38,000 --> 00:51:42,660
to remain the flexibility and going back to your comment. Flexibility is going to be very important

637
00:51:43,220 --> 00:51:49,120
in terms of how this is operating, especially this first year where there's going to be a lot of

638
00:51:49,120 --> 00:51:55,920
unknowns as we bring in via to handle some of these items. So as I noted, there's not to exceed

639
00:51:55,920 --> 00:52:01,240
amount that is to be an alignment with our city budget from a year-to-year basis but it includes

640
00:52:01,240 --> 00:52:05,780
flexibility to adjust those hours and cost of services between them as long as they do not exceed

641
00:52:05,780 --> 00:52:11,140
the not-to-exceed amount for that particular year. As I stated, we assume some fish should see gained

642
00:52:11,140 --> 00:52:14,760
in the implementation of micro transit in the second half of the year, which is why you'll see the lower

643
00:52:14,760 --> 00:52:21,320
rate at $70.79 an hour. We're hoping to achieve with them. And then as I noted, the hours for fixed

644
00:52:21,320 --> 00:52:26,580
throughout as well as paratransit our alignment with kind of previous year to date and previous

645
00:52:26,580 --> 00:52:31,660
years of what we've seen for those services. Just a couple of termination comments on the

646
00:52:31,660 --> 00:52:36,380
termination provisions within the master services agreement. They're typical what you

647
00:52:36,380 --> 00:52:41,180
would see in most agreements, uncured default of the agreement terms, non-payment or non-appropriation

648
00:52:41,180 --> 00:52:47,320
by the city bankruptcy, by via or Sioux Falls transit, or breach of liability, which we've

649
00:52:47,320 --> 00:52:56,760
We've kept liability at $15 million per current, but if they were to breach that, we want the right to terminate the agreement and move forward if necessary from that perspective.

650
00:52:57,220 --> 00:53:11,380
We've also included at our option as a city to allow termination if via is either merges or acquires and this happens quite often, we've seen it happen recently with days in global, we have not previously included this provision within our agreements.

651
00:53:11,380 --> 00:53:15,440
In this case, being a technology company, I think we're just sensitive to what that looks like.

652
00:53:15,820 --> 00:53:21,080
We want to make sure that we're protected as a city in terms of our transit provider and it's just an optional piece.

653
00:53:21,600 --> 00:53:23,060
Should we choose to execute it?

654
00:53:23,740 --> 00:53:28,740
Service order one really encapsulates our views on what the scope of services all entail.

655
00:53:29,280 --> 00:53:34,840
And I don't want to go through this in too much depth, but I want to give you just a flavor of some of the things that are covered in service order one.

656
00:53:35,120 --> 00:53:40,500
It's not an exhaustive, all-inclusive list, but it was our attempt to define our expectations for

657
00:53:40,500 --> 00:53:45,180
what we believe a turn key transit operation really looks like, and so it covers things like

658
00:53:45,180 --> 00:53:49,620
obviously system operations of managing all routes, scheduling, dispatching, fair management,

659
00:53:50,020 --> 00:53:53,980
pair of transit interviews, and eligibility, determination, supervision of all facilities

660
00:53:53,980 --> 00:53:55,440
and grounds and quality control.

661
00:53:56,080 --> 00:54:00,480
As I noted, they would be responsible for all technology when it comes to procurement, operation

662
00:54:00,480 --> 00:54:02,260
and maintenance, whether software or hardware.

663
00:54:02,700 --> 00:54:07,640
They will direct all human resource needs and trainings, safety and security being able

664
00:54:07,640 --> 00:54:11,620
able to manage and improve employee safety and security, regular monthly trainings,

665
00:54:11,920 --> 00:54:13,980
accident investigations, things of that nature.

666
00:54:14,180 --> 00:54:17,240
FTA compliance, it was really important to us that they take a leading role.

667
00:54:17,700 --> 00:54:22,720
And working with us on the FTA compliance, but taking the lead and primary role as it relates to that.

668
00:54:23,040 --> 00:54:27,020
Financial and budgetary services, so monitoring budget and monthly budget status reports,

669
00:54:27,640 --> 00:54:33,900
annually verifying customer transit assets, and in preparing managing and processing all financial and accounting transactions.

670
00:54:33,900 --> 00:54:37,800
They've been responsible for all marketing that will not be the responsibility of the city.

671
00:54:37,940 --> 00:54:44,440
This includes planning and organizing and developing cost-effective service marketing, ensuring cohesive brand and customer service experience,

672
00:54:45,000 --> 00:54:51,640
making sure they handle all public transit signage, all digital communications and the training and all use of all technology for writers.

673
00:54:52,340 --> 00:54:58,700
And then on this slide, but lastly, customer service is really important for them managing all aspects of customer services,

674
00:54:59,020 --> 00:55:02,620
being able to review, track and respond to customer inquiries and complaints.

675
00:55:02,620 --> 00:55:07,480
updates. Also covered under this is public participation meaning they are required to participate

676
00:55:07,480 --> 00:55:12,040
in anything related to public hearings at our request as it relates to public transit

677
00:55:12,040 --> 00:55:16,820
as well as participate in city meetings and presentations to the city council. Documentation

678
00:55:16,820 --> 00:55:21,620
of for compliance and reporting, very important for us to make sure that we are seeing compliance

679
00:55:21,620 --> 00:55:25,960
with our FDA requirements given the funding that we receive so they are responsible for

680
00:55:25,960 --> 00:55:30,740
preparing submitting those reports and documentation with review by the city and in compliance with

681
00:55:30,740 --> 00:55:34,680
all federal rules and regs, maintaining maintenance records and other required documentation

682
00:55:34,680 --> 00:55:39,640
for FTA and issuing monthly reports relating to financial status, urine projections, metrics

683
00:55:39,640 --> 00:55:40,340
and ridership.

684
00:55:41,180 --> 00:55:46,100
Grants and funds, they have a responsibility to maximize the use of grant funding and assist

685
00:55:46,100 --> 00:55:52,140
us with the advising and with application as needed for additional grant or funding opportunities

686
00:55:52,140 --> 00:55:56,600
ensuring that those reporting requirements are being met, they will be fully responsible

687
00:55:56,600 --> 00:56:06,880
for all maintenance of the sewer and metro fleet, capital fleet as is current, maintaining inventory and essential parts, and performing property maintenance for all of the sewer and metro facilities.

688
00:56:07,760 --> 00:56:15,820
And then finally quality, providing route service recommendations, work with customer to develop metrics.

689
00:56:16,360 --> 00:56:25,680
And then they have to require annually submit an annual comprehensive service plan where they would outline proposed services for the upcoming year that aligns with our city objectives.

690
00:56:25,680 --> 00:56:30,080
It demonstrates a continual commitment to improvements to all the service components

691
00:56:30,080 --> 00:56:34,260
for the forthcoming year and such service plans shall be delivered to the city as part

692
00:56:34,260 --> 00:56:35,340
of its budgeting process.

693
00:56:36,260 --> 00:56:41,180
The service order two is more of a one-time item and this results to the consulting services

694
00:56:41,180 --> 00:56:46,200
so it's a one-time $50,000 fee that is related to their comprehensive review of our system

695
00:56:46,200 --> 00:56:47,320
and to make recommendations.

696
00:56:47,840 --> 00:56:52,520
These deliverables will include review of the previous studies looking at existing conditions

697
00:56:52,520 --> 00:56:57,420
and transit market analysis, development of the multi-modal transit solutions,

698
00:56:57,580 --> 00:57:02,480
evaluation of the transit alternatives, provide recommendations and cost estimates for implementation,

699
00:57:02,980 --> 00:57:07,800
and a post-launch service evaluation should those recommendations be moved forward.

700
00:57:08,420 --> 00:57:13,300
This is a one-time thing because it's a fairly significant lift to basically do a complete and total

701
00:57:13,300 --> 00:57:19,260
review of our transit plan as it was previously proved and making changes or recommendations based

702
00:57:19,260 --> 00:57:23,000
on their experience as well as the technology that they're able to implement for us on our

703
00:57:23,000 --> 00:57:23,340
behalf.

704
00:57:24,780 --> 00:57:28,840
Obviously, we are going to rely on their consulting services ongoing, but this is just

705
00:57:28,840 --> 00:57:32,420
a one-time live that's going to happen, and then after that, it will be more about continuing

706
00:57:32,420 --> 00:57:33,320
review process.

707
00:57:33,540 --> 00:57:35,200
They will do from a consulting basis.

708
00:57:35,960 --> 00:57:40,480
The last order is just the service order three, which defines the three services to which

709
00:57:40,480 --> 00:57:45,780
they are providing, which is fixed route paratransit and microtransit services, defines the hourly

710
00:57:45,780 --> 00:57:51,220
service fee, which is covered in Appendix B to the MSA, it defines the monthly fee,

711
00:57:51,400 --> 00:57:54,520
which is essentially the hourly service fees multiplied by vehicle hours.

712
00:57:55,920 --> 00:58:00,440
Again, those are established in Exhibit B, as well as the not-to-excite amounts.

713
00:58:00,720 --> 00:58:05,480
And then there is a provision for allowing for adjustment of those hourly fees or

714
00:58:05,480 --> 00:58:10,360
those monthly fees as it relates, if you see a 10% or more increase in either labor,

715
00:58:10,660 --> 00:58:13,540
driver pay, vehicle cost and maintenance, as well as fuel.

716
00:58:13,540 --> 00:58:18,140
And certainly I think that's just a bit of a hedge against some of the experiences we've had over the last couple of years

717
00:58:18,140 --> 00:58:21,620
Which hopefully will have become made like more mitigated in the years ahead

718
00:58:22,600 --> 00:58:26,160
Lastly in the exhibit to service or a three I want to point out the data sharing

719
00:58:27,320 --> 00:58:34,260
Piece of this so it establishes data practices between the city and with the via one of the things that view allows us to do

720
00:58:34,260 --> 00:58:40,460
Is a certain number of individuals from our city at the capacity to log into their system and review all of the data of all of our

721
00:58:40,460 --> 00:58:45,220
ridership, but as you might be aware, you know, that could contain certainly personal

722
00:58:45,220 --> 00:58:49,360
identifiable information, which needs to be protected, as well as really intellectual

723
00:58:49,360 --> 00:58:49,940
property.

724
00:58:50,140 --> 00:58:54,560
And one thing that makes VIA who they are is their intellectual property and the systems

725
00:58:54,560 --> 00:59:00,600
that they've developed and they do not want to be, you know, available for another competitive

726
00:59:01,680 --> 00:59:03,860
potentially reconstructed algorithms with them.

727
00:59:03,940 --> 00:59:08,460
And so, recognizing that, we certainly want to have access to the data and we also want

728
00:59:08,460 --> 00:59:12,820
to be able to provide that information in many ways publicly and with our council and

729
00:59:12,820 --> 00:59:16,680
so we've identified in the two areas with those kind of a section A what we call public

730
00:59:16,680 --> 00:59:21,560
data measures is our top level. So there's talking about total ride requests met, it should

731
00:59:21,560 --> 00:59:26,900
say met demand, completed ride utilization, detailed ride request status and utilization

732
00:59:27,390 --> 00:59:32,520
average ride durations, ride ratings, walking distance drop offs, how many requested, how many

733
00:59:32,520 --> 00:59:37,740
drops offs were on time, time scheduled versus actual plus rider experience graphs. Some

734
00:59:37,740 --> 00:59:54,520
One of the pieces that obviously are looking at a more proprietary or intellectual property side is related to rider ID numbers and things of that nature, a number of passengers, their origin, destination, and address points and then ride prices, distances and durations.

735
00:59:55,120 --> 00:59:58,460
Again, information that will be available to the staff.

736
01:00:00,000 --> 01:00:29,800
As well as two elected officials, but not something that they want really advise or available to their competitors who would want to reconstruct some of the things that BIA does from that standpoint. Last thing I will talk about is the performance metrics. So there's a section B exhibit one, believe to service order three, that might be exhibit two. Yeah, it is exhibit two to service order three. And this is the performance metrics that we will work with BIA to construct annually. I think mostly we will be consistent on an annual basis.

737
01:00:29,800 --> 01:00:34,100
but these are the things that we will agree upon are the things that we want to monitor and report on

738
01:00:34,720 --> 01:00:39,660
and that we think would be most important to you as policymakers and as elected officials of the

739
01:00:39,660 --> 01:00:44,320
government of the city government but as well as to staff as we monitor that system. So we're working

740
01:00:44,320 --> 01:00:49,160
on constructing those performance metrics and allows some flexibility for them to change over time

741
01:00:49,620 --> 01:00:56,140
but I think they'll be fairly specific or consistent once we kind of adapt to a model and it'll be

742
01:00:56,140 --> 01:01:01,360
things like, you know, timeliness and performance around those.

743
01:01:01,760 --> 01:01:07,040
So those are still being crafted and will be adjusted as needed within the agreement.

744
01:01:08,680 --> 01:01:10,400
So I know that was a lot of information.

745
01:01:11,500 --> 01:01:18,720
And so happy myself, hopefully, obviously Director Ekkoff is here as well as various other

746
01:01:18,720 --> 01:01:22,320
staff members that were involved in the process for negotiating this agreement and hopefully

747
01:01:22,320 --> 01:01:28,080
We can answer what questions you have as we prepare for considering this agreement at the December 5th Council meeting.

748
01:01:28,420 --> 01:01:29,400
Thank you, Director.

749
01:01:29,760 --> 01:01:30,580
Councilor's questions.

750
01:01:31,720 --> 01:01:32,500
Councilor Seal.

751
01:01:33,040 --> 01:01:33,960
Thank you, Mr. Chair.

752
01:01:34,960 --> 01:01:36,340
Sean, I've got a couple of questions.

753
01:01:36,800 --> 01:01:41,560
Let's talk about the restricted account to hedge against accrued liabilities.

754
01:01:44,740 --> 01:01:51,060
$600,000 for the liabilities that the current SAM is going to walk away from.

755
01:01:51,580 --> 01:01:52,540
They're working to pick up.

756
01:01:52,540 --> 01:01:59,620
So they are not walking away from it because think of the way that the previous structure was constructed is those were our liabilities.

757
01:02:00,180 --> 01:02:03,240
They're operating with our money, we were just paying them a management fee.

758
01:02:03,700 --> 01:02:08,240
So it's a little like ASIM Global, we're handing you a checkbook and you're monitoring through that and your employees,

759
01:02:09,020 --> 01:02:17,540
while your employees are still there, those accrued liabilities would have been paid out of our accounts anyway,

760
01:02:18,080 --> 01:02:20,300
just like all of their salaries and so forth are.

761
01:02:20,800 --> 01:02:28,240
Whereas when we're adjusting toward a model of just paying on an hourly basis for vehicle hours and saying everything else is up to you.

762
01:02:28,960 --> 01:02:38,080
Well, via would be coming in and absorbing $600,000 of liabilities that truly, we're not first transits, they were in the city of Sioux Falls and liabilities through first transit.

763
01:02:39,360 --> 01:02:46,960
I'm probably going to circle back for more detailed explanation because it's hard for me to wrap my hands around.

764
01:02:46,960 --> 01:02:49,860
It was a little hard for me to wrap around to it, so.

765
01:02:50,400 --> 01:02:54,840
And secondly, a one-time $50,000 fee for consulting?

766
01:02:55,200 --> 01:02:55,400
Yes.

767
01:02:56,980 --> 01:03:06,060
If they would have not been picked in the RFP, would we still have owed them the $50,000 for review of our current program?

768
01:03:06,760 --> 01:03:09,540
No, so they've done some initial review of our program.

769
01:03:09,760 --> 01:03:13,720
They do not expect to wrap this up until March of next year.

770
01:03:13,720 --> 01:03:17,080
And really part of it is they need to actually get into this system.

771
01:03:17,400 --> 01:03:20,320
They have limited access to real time data, right?

772
01:03:20,480 --> 01:03:25,200
So they've been given some reports from our previous provider and they've been given

773
01:03:25,200 --> 01:03:28,920
our transit development plan and we've tried to provide them as much information as we can.

774
01:03:29,300 --> 01:03:34,100
But their technology that they will implement will have a really intense ability to really

775
01:03:34,100 --> 01:03:39,040
look in a different way at our system and then they'll be able to see where our writers are

776
01:03:39,040 --> 01:03:43,540
coming from where they're getting dropped off at and seeing how all that flows and then

777
01:03:43,540 --> 01:03:44,340
factoring that end.

778
01:03:44,780 --> 01:03:47,520
So that no, that wouldn't have been something we would have occurred had been not shows

779
01:03:47,520 --> 01:03:47,780
them.

780
01:03:47,940 --> 01:03:52,120
And it's a one time fee basically to lift and to review our transit development plan.

781
01:03:52,440 --> 01:03:57,140
If I recall correctly, just based on the technology we had previously, I think we could probably

782
01:03:57,140 --> 01:04:00,060
figure out where we were picking them up, but we couldn't figure out where we were not

783
01:04:00,060 --> 01:04:02,460
tracking where we were dropping them off, is that correct?

784
01:04:03,280 --> 01:04:07,900
Because I mean we could check based on the bear boxes where we were picking up, we didn't

785
01:04:07,900 --> 01:04:11,960
have a tracking system in the know where those riders happen to be going. And part of that is

786
01:04:11,960 --> 01:04:17,520
understanding the whole system. So the data just doesn't exist yet. And the contractor requires

787
01:04:17,520 --> 01:04:22,800
them to have that reviewed done by April 30th. But they had told us they expect to hopefully be done

788
01:04:22,800 --> 01:04:27,940
by March 31st of this year. Thank you. I appreciate all your hard work on that.

789
01:04:28,320 --> 01:04:32,660
And direct your act off. And Councillor Knights are for getting this food forward. I appreciate it.

790
01:04:32,660 --> 01:04:33,000
Thank you.

791
01:04:34,400 --> 01:04:35,160
Any questions?

792
01:04:35,400 --> 01:04:35,880
Councillor Branco?

793
01:04:36,840 --> 01:04:37,720
Yeah, I've got a few at it.

794
01:04:39,560 --> 01:04:45,040
So when you talked about the data sharing, you gave us two kind of category one and category

795
01:04:45,040 --> 01:04:45,480
two.

796
01:04:46,440 --> 01:04:50,660
How am I correct in understanding that category one will be data that's publicly available?

797
01:04:51,200 --> 01:04:51,880
It could be yes.

798
01:04:52,040 --> 01:04:55,800
I mean, it really is a lot of the same stuff that people would have requested or we would

799
01:04:55,800 --> 01:04:56,880
have recorded on previously.

800
01:04:57,720 --> 01:05:02,360
It's just having access to, when you're generating so much more data, there are certain things

801
01:05:02,360 --> 01:05:06,740
that you wouldn't want to have available to the public, right, whether it's an ID of

802
01:05:06,740 --> 01:05:11,680
somebody where their ridership is, are things that are truly identified, are truly a part

803
01:05:11,680 --> 01:05:17,360
of the technology that they're using, that doesn't really tell you a whole lot about

804
01:05:17,360 --> 01:05:17,820
the system.

805
01:05:17,920 --> 01:05:21,800
There's certainly going to work with us in many ways possible to provide as much information.

806
01:05:22,820 --> 01:05:26,220
And that's really where kind of defining those metrics is really important too, because those

807
01:05:26,220 --> 01:05:29,180
are the top level things that should matter the most to us.

808
01:05:29,180 --> 01:05:30,920
But that kind of leads into my second question.

809
01:05:31,100 --> 01:05:35,460
So, the second category would be more public.

810
01:05:35,860 --> 01:05:41,820
The second category would be restricted access, but, for example, a councilman who's

811
01:05:41,820 --> 01:05:45,960
very interested in learning about this system would be able to see some of those numbers

812
01:05:45,960 --> 01:05:51,840
and participate in conversations about, okay, now we're seeing a great deal of terrific

813
01:05:51,840 --> 01:05:55,760
data about who's using the system, where they're going, what a ridership is.

814
01:05:55,760 --> 01:06:02,680
So we can have an intelligent conversation about how to move forward, improve, optimize.

815
01:06:03,520 --> 01:06:07,760
Yes, and I think there's a lot to the system that we can't even know yet, because we're not getting it.

816
01:06:07,760 --> 01:06:08,880
Oh, no, of course we can.

817
01:06:09,080 --> 01:06:15,140
And so once we actually start using the system, we're going to have a better understanding of what we're able to kind of generate for reports on that.

818
01:06:15,240 --> 01:06:21,620
But I think there's just the volumes and information is going to be much more than what we've been able to have the capacity.

819
01:06:21,780 --> 01:06:24,960
But I see that as an incredibly good thing once we get there.

820
01:06:24,960 --> 01:06:26,560
Let me ask, may I ask another?

821
01:06:26,800 --> 01:06:27,240
Yes, go ahead.

822
01:06:28,120 --> 01:06:29,780
Or, I'm sorry, I mean to...

823
01:06:29,780 --> 01:06:30,320
Oh, that's a good idea.

824
01:06:30,540 --> 01:06:31,080
You have to go ahead.

825
01:06:31,280 --> 01:06:35,480
Well, you talked about, I mean, I'm with you, you know, incentives are important.

826
01:06:35,900 --> 01:06:41,900
You said you wanted to incentivize sponsorship and marketing revenue, which I see as something

827
01:06:41,900 --> 01:06:43,700
that has been underutilized in the past.

828
01:06:44,220 --> 01:06:50,480
Can you explain to me how diverting that to our partner will cause that to be incentivized

829
01:06:50,480 --> 01:06:54,840
to, I mean, how does that work and how does that benefit the stake

830
01:06:55,420 --> 01:06:59,840
They're going to factor what they think they can do as part of their net pricing when they set their hourly amounts.

831
01:07:01,620 --> 01:07:04,140
But since it's not a significant amount of revenue,

832
01:07:05,260 --> 01:07:08,520
you're incentivized if the capacity is for them to grow that over time,

833
01:07:08,520 --> 01:07:10,280
and I would love to see them grow that over time,

834
01:07:10,860 --> 01:07:13,000
to a point where if it becomes a significant opportunity,

835
01:07:13,340 --> 01:07:15,620
then we get into more of a revenue sharing of that,

836
01:07:16,160 --> 01:07:21,280
which could be something that we could identify within the option for extension at that point.

837
01:07:21,280 --> 01:07:25,520
but I think right now, given, I mean, it's a few thousand dollars a year,

838
01:07:25,640 --> 01:07:27,200
I don't even think it's hardly any significance.

839
01:07:27,740 --> 01:07:31,400
Actually, the true value we could have and some of the sponsorships is

840
01:07:31,400 --> 01:07:34,800
that the more we get it out there, you know, like experienced Sioux Falls,

841
01:07:34,800 --> 01:07:38,180
sometimes sponsors of bus and things like that, it's an opportunity for us

842
01:07:38,180 --> 01:07:42,900
to hopefully help share some of the things that are already out there,

843
01:07:42,920 --> 01:07:45,500
like experienced Sioux Falls and so forth and really leverage some of that.

844
01:07:45,500 --> 01:07:51,100
But if I could just, so I guess the idea is if we let them capture that revenue at the beginning,

845
01:07:51,280 --> 01:07:56,680
that incentivizes them to grow that, and then in future years, that could be something

846
01:07:56,680 --> 01:08:02,400
that will revenue share with them and therefore the ideas that could reduce our cost

847
01:08:02,400 --> 01:08:03,340
once it's grown.

848
01:08:03,920 --> 01:08:08,080
Or if it grows enough, you could reduce your hourly rates below what they would charge previously.

849
01:08:08,180 --> 01:08:10,860
Yeah, right, so it's all one bucket essentially from their perspective.

850
01:08:11,800 --> 01:08:14,560
I may have more questions, but I'll pass the mic.

851
01:08:18,510 --> 01:08:19,170
Councillor Neill, answer?

852
01:08:20,190 --> 01:08:24,590
Yeah, as I stated before, I'm super excited about this and very grateful for probably

853
01:08:24,590 --> 01:08:26,850
the enormous lift for all the city staff.

854
01:08:27,370 --> 01:08:32,310
A couple of quick questions, just a couple of headline things that I think people would want

855
01:08:32,310 --> 01:08:33,070
to be clear about.

856
01:08:33,670 --> 01:08:42,090
So right now the 2024 budget does have 12 million essentially in change for the operating.

857
01:08:42,090 --> 01:08:49,930
And so, you're attempting at least to start to be essentially budget neutral in operations from old provider to new.

858
01:08:50,150 --> 01:08:50,970
Is that fair?

859
01:08:52,170 --> 01:08:57,430
Yes, but we had allowed in the budget to have some expansion capacity within the next budget.

860
01:08:57,670 --> 01:09:01,410
So it contemplated more expansion of what we called odd demand.

861
01:09:01,410 --> 01:09:06,650
And now we would call micro transit and hope that if we would get to more portions service of the community.

862
01:09:07,370 --> 01:09:11,590
And so that was part of that budget, and that's why you see those numbers factored into

863
01:09:11,590 --> 01:09:15,810
that 17,000 hours for microtransit, which we are currently not providing.

864
01:09:16,530 --> 01:09:22,390
But we wanted to also ensure people that fixed route and paratransit were at service levels

865
01:09:22,390 --> 01:09:25,650
that we're budgeting for them at service levels that we were at previously.

866
01:09:26,090 --> 01:09:30,630
Our hope is through some efficiencies that gained that even the hours can come down, or you

867
01:09:30,630 --> 01:09:34,210
have more expeditious service in terms of buses on routing systems.

868
01:09:34,210 --> 01:09:41,910
The fixed routes might change somewhat, but hopefully it would be more efficient with an expanded microtransit, alongside it to complement it.

869
01:09:43,030 --> 01:09:43,110
Okay.

870
01:09:45,530 --> 01:09:53,470
We're going to run the same that we have on January 1st, so that we have continuity and we can ease into and we got a way for them to do their analysis anyway.

871
01:09:53,470 --> 01:09:54,110
Yeah, exactly. Yeah.

872
01:09:55,550 --> 01:09:59,770
Do we stipulate going forward in the contract, a minimum,

873
01:10:00,750 --> 01:10:03,350
you know, that you must operate it minimum, let's say,

874
01:10:03,410 --> 01:10:06,050
seven a.m. to five p.m., five days a week,

875
01:10:06,190 --> 01:10:10,170
or, you know, some minimum amount that they must cover.

876
01:10:10,510 --> 01:10:13,170
If that makes sense, days of the week and hours?

877
01:10:13,990 --> 01:10:16,350
We didn't specifically, I don't know if you want to address

878
01:10:16,350 --> 01:10:18,350
this question. We didn't specifically call that out

879
01:10:18,350 --> 01:10:20,150
with the agreement. I think, you know,

880
01:10:20,230 --> 01:10:22,030
their assumption is that they're going to continue to

881
01:10:22,030 --> 01:10:25,650
to cover the same hours that they were previously, and hopefully, you know, if they find

882
01:10:25,650 --> 01:10:29,050
efficiencies gain on that, but better let Director up top in.

883
01:10:31,610 --> 01:10:35,810
So, yeah, Director Pritch was correct, it's not called a specifically an agreement,

884
01:10:35,970 --> 01:10:40,750
but the agreement that we have with them is, yes, they would mirror the same hours of service

885
01:10:40,750 --> 01:10:41,890
and not reduce those.

886
01:10:42,390 --> 01:10:47,490
In fact, we are also looking at ways to expand services, probably through micro transit,

887
01:10:47,490 --> 01:10:48,670
they'll be part of that analysis.

888
01:10:48,670 --> 01:10:54,110
Yeah, yeah, I mean, obviously that's the hope is eventual expansion.

889
01:10:54,790 --> 01:11:02,650
One thing that I think I just want to just say out loud that because I've gotten this question a few times because we all know micro transit sometimes is controversial.

890
01:11:03,430 --> 01:11:09,930
And so I think it's just important to reiterate to people we are not, this is not a micro transit service, this is a hybrid service.

891
01:11:10,790 --> 01:11:18,650
Fixed routes will continue to be there and micro transit is our essentially our adjunct to cover more of the city that we can't cover right now.

892
01:11:18,650 --> 01:11:26,010
So just so people are clear, because I've heard anything from people so far as some hesitance of oh, are you just going to micro transit? No, fixed routes are going to still be there.

893
01:11:26,330 --> 01:11:29,070
Correct, it'll be a hybrid system, but exactly as you described.

894
01:11:29,670 --> 01:11:36,830
And then maybe my only last final statement is I'm so excited for service order to the consulting services.

895
01:11:37,130 --> 01:11:45,710
I can't wait to see what they can come up with in terms of what we can do in terms of how the system can look and what route should look like so that we can get.

896
01:11:46,670 --> 01:11:53,790
Hopefully expanding the micro transit last question January 1st we're going to be continuing

897
01:11:53,790 --> 01:11:59,030
to run on demand just on the weekends like we are now. Are we going to keep using our

898
01:11:59,030 --> 01:12:04,510
fixed route buses or are they going to transition to their fleet? Is anything going to change

899
01:12:04,510 --> 01:12:09,130
and let's say the first three months in how micro transit works until they've done their

900
01:12:09,130 --> 01:12:09,590
analysis?

901
01:12:09,590 --> 01:12:14,330
This probably won't be a lot of change that I know we are looking at bringing some vehicles in.

902
01:12:14,950 --> 01:12:19,510
The great thing with lack of transit was smaller vehicles and getting the neighbors that we can't with larger buses.

903
01:12:20,130 --> 01:12:25,030
But their tent is to keep service exactly the same to start with and then slowly transition over correct.

904
01:12:25,290 --> 01:12:25,950
Okay, thanks.

905
01:12:26,790 --> 01:12:27,490
Councillor Jensen.

906
01:12:27,990 --> 01:12:28,650
Thank you, Mr. Chair.

907
01:12:28,890 --> 01:12:29,490
Director, I'll correct off.

908
01:12:29,570 --> 01:12:30,970
You might be the best for this, I don't know.

909
01:12:31,470 --> 01:12:34,610
And maybe I missed the report on it.

910
01:12:34,610 --> 01:12:44,970
But I know we are going to look at potentially moving where the buses were stored and all that can you just bring us up to date on where that

911
01:12:45,810 --> 01:12:51,970
Conversation is going because I know gone because I know that there are some appropriations that have come in us in front of us before and

912
01:12:51,970 --> 01:13:01,150
Just want to get an update and how it relates to this. Yes, so we are in the final stages of that process. We've hired TSP to

913
01:13:01,150 --> 01:13:06,130
So that the different sites for us to be down to, I think for our final selection will be.

914
01:13:07,030 --> 01:13:11,970
We will be then working with federal transit authority to make sure that they accept the site.

915
01:13:12,630 --> 01:13:16,890
And then after that it becomes a matter of working with the council and our busing process

916
01:13:16,890 --> 01:13:22,550
to be where does that fall into the CIP in order to acquire the land and then go ahead and

917
01:13:22,550 --> 01:13:24,010
make the construction.

918
01:13:24,770 --> 01:13:30,410
So with that in mind, it's probably, by time you get approval, by time you get the money

919
01:13:30,410 --> 01:13:32,610
and CIP by the time you design a construction,

920
01:13:33,210 --> 01:13:34,990
we're looking at probably a five-year process.

921
01:13:35,670 --> 01:13:38,710
So there are some funds in there for the third maintenance,

922
01:13:38,950 --> 01:13:41,650
some things rough and things that have to be done.

923
01:13:41,810 --> 01:13:42,670
So you'll see some of that.

924
01:13:43,190 --> 01:13:45,250
But the intent is long-term is look at the long view

925
01:13:45,250 --> 01:13:47,170
whether or not there's a higher better use.

926
01:13:47,490 --> 01:13:50,510
And so, VIA is aware that we're in that process

927
01:13:50,510 --> 01:13:53,810
and we certainly would, as we get into the design phase of that,

928
01:13:54,330 --> 01:13:55,710
we would certainly be working with them

929
01:13:55,710 --> 01:13:57,910
to make sure, especially now, that we're looking

930
01:13:57,910 --> 01:14:02,530
a smaller bus with different side vehicles that the facility is suitable for them.

931
01:14:03,150 --> 01:14:08,950
Great. Thank you for the update. One last question, with regard to the fleet itself,

932
01:14:09,350 --> 01:14:16,350
you talked about them bringing in some of their fleet to the project and we have a fleet

933
01:14:16,350 --> 01:14:24,270
of buses as well. How does that work long-term? Are they going to transfer all of the buses

934
01:14:24,270 --> 01:14:30,390
to their own fleet and we will eventually have, you know, obsolete buses as it may be said.

935
01:14:30,730 --> 01:14:35,390
So the larger buses will always have a need for those for fixed route and because of the way we

936
01:14:35,390 --> 01:14:39,990
purchased those as a federal share, federal dollars into those, the intent probably a long term is

937
01:14:39,990 --> 01:14:45,510
for the city to retain those, the ownership of those. The para transit, the most medium-sized smaller

938
01:14:45,510 --> 01:14:50,070
buses, we're not purchased with federal funds so there's a discussion whether they transfer to

939
01:14:50,070 --> 01:14:54,590
be or whether we keep ownership, but it's important to remember at the end of the day these

940
01:14:54,590 --> 01:14:58,650
assets are ours and so if they were to leave, assets do return back to us.

941
01:15:00,000 --> 01:15:28,840
Model on the vans, the smaller vehicles has been, they have agreements with some of the rental companies, larger hearths and evils, and some of those. I believe they lease those vans. And so those would stay on their side of the ledger, and then they would manage that part of the fleet. Very good. Thank you. Councillor star. Yes. Thank you. Actually, I want to start with Director Pritchett, if I can, and then I'll probably, well, you know what, you're here. No, you're here. No, no, no, let's go. Let's do the pair. Tell me how,

942
01:15:28,840 --> 01:15:36,780
how paratransit will change because we've kind of taken will that totally be their responsibility

943
01:15:36,780 --> 01:15:41,480
because we've used River City we've looked at different things what will we see different

944
01:15:41,480 --> 01:15:42,720
with paratransit I guess.

945
01:15:43,000 --> 01:15:49,000
So the core paratransit will stay essentially the same long term you're looking at the

946
01:15:49,000 --> 01:15:56,420
ability to combing all the micro transit with with paratransit to have a larger coverage

947
01:15:56,420 --> 01:15:56,920
area.

948
01:15:56,920 --> 01:16:01,260
With the River City, those agency rides, that's a totally separate agreement.

949
01:16:01,460 --> 01:16:04,720
That actually is an agreement between those agencies and River City transits.

950
01:16:05,300 --> 01:16:08,380
And we fund those, and that's a whole other story, we had that conversation.

951
01:16:08,740 --> 01:16:14,380
So we don't see that changing, the first year, there'll be some discussion in the long term whether that's something that

952
01:16:14,380 --> 01:16:20,560
via could bid on with those agencies, but those contracts are technically with those agencies and River City.

953
01:16:20,940 --> 01:16:23,160
But there are changes in that for the first year.

954
01:16:23,760 --> 01:16:42,700
Do you see in the first couple of years some kind of changes in rates because, and again, this is where I was going to go with Director Pritchett a little bit, but I mean, do we get 10% of fairs to cover the overall in relation to the overall cost of the system. I mean, it's not even close to that.

955
01:16:42,700 --> 01:16:45,540
No, I think last year, of course, writing a ship was down.

956
01:16:46,060 --> 01:16:50,400
I believe our fares are about $400,000 or $400, $500,000.

957
01:16:50,500 --> 01:16:52,480
Now it goes back into their budgets and offsets,

958
01:16:52,660 --> 01:16:54,600
but it's not significant amount of no.

959
01:16:55,200 --> 01:16:59,060
All right, then that's, now I can do city employees,

960
01:16:59,180 --> 01:17:00,440
or I can do employees with you.

961
01:17:02,040 --> 01:17:03,280
Yeah, I know I should have switched

962
01:17:03,280 --> 01:17:04,260
when you had the chance.

963
01:17:04,480 --> 01:17:05,780
You stayed at the podium too long.

964
01:17:09,750 --> 01:17:13,670
Who are the current SAM employees?

965
01:17:14,490 --> 01:17:17,150
When they look at their paycheck, who are they employed by?

966
01:17:17,690 --> 01:17:20,870
Technically, so the whole income needs first transit.

967
01:17:21,170 --> 01:17:24,130
And first transit created a sub-corporation

968
01:17:24,130 --> 01:17:26,030
in Sioux Falls called Trans-Del.

969
01:17:26,550 --> 01:17:28,470
And that's technically who they're employed by.

970
01:17:28,650 --> 01:17:31,510
And they have that because then the union works with that.

971
01:17:32,510 --> 01:17:34,270
Via is doing a very summer thing.

972
01:17:34,450 --> 01:17:36,130
They're creating Sioux Falls Transit LLC.

973
01:17:36,930 --> 01:17:39,630
And that's technically who they'll be the employer

974
01:17:39,630 --> 01:17:42,350
of those drivers and administrative staff.

975
01:17:42,350 --> 01:17:50,990
But it's a whole new subsidiary of the who represents them currently from the the union standpoint. What's the overall?

976
01:17:52,030 --> 01:17:57,870
Are they asked me the drivers are the employees the employees slash drivers?

977
01:17:59,370 --> 01:18:05,490
It's a specific union. I don't have exactly a bread. That's what I was I'm glad you came

978
01:18:06,190 --> 01:18:07,450
Well, thank you

979
01:18:09,450 --> 01:18:22,370
So, yes, they do have a union representative and that's voted on by their delegation and I cannot tell you his last name first name's Cody and he's actually a mechanic within the operation.

980
01:18:22,370 --> 01:18:27,730
The name of the union currently is Sutran.

981
01:18:28,270 --> 01:18:29,210
The larger.

982
01:18:30,170 --> 01:18:31,210
AFL CIO.

983
01:18:32,390 --> 01:18:33,070
ATU.

984
01:18:34,550 --> 01:18:34,990
ATU.

985
01:18:35,270 --> 01:18:35,650
Perfect.

986
01:18:38,350 --> 01:18:43,950
How do we get those employees negotiated and moved over because we haven't approved

987
01:18:43,950 --> 01:18:49,330
the contract until the first week of December, is it next week that we're going to approve

988
01:18:49,330 --> 01:18:50,830
the overall contract?

989
01:18:50,830 --> 01:18:57,030
Are they able, are they negotiating already with the employees so that we have employees January 1st?

990
01:18:59,300 --> 01:19:05,480
Yes, my understanding is that they've reached a remote to the union that's, that was part of why they set up a two-fall

991
01:19:05,480 --> 01:19:10,760
transit so order to absorb the union. Typically, I think a lot of the BS shops are non-union.

992
01:19:11,900 --> 01:19:15,280
Gotcha. Yeah, I'm not going to go there.

993
01:19:18,400 --> 01:19:22,020
Oh, if Director Pritchett probably by the time, can you

994
01:19:22,020 --> 01:19:23,920
We flip back to slide 11.

995
01:19:28,560 --> 01:19:35,860
When we look at the 12.2 overall budget that we have, how does that break down between

996
01:19:36,700 --> 01:19:40,100
city, state, federal funds, fairs?

997
01:19:40,220 --> 01:19:46,740
I mean, you gave me part of it with, you know, the 400,000 in fair portion was by to 600,000.

998
01:19:46,820 --> 01:19:50,300
But I'm going to have to, I don't know if Tim, if you know, at your fingertips, kind of what was

999
01:19:50,300 --> 01:19:54,680
federal, $400,000, $4,000,000, it's a federal funding.

1000
01:19:55,300 --> 01:19:55,340
Okay.

1001
01:19:56,120 --> 01:19:57,580
And then the rest is low.

1002
01:19:57,600 --> 01:19:59,840
City sales tax slash that breakdown.

1003
01:20:01,740 --> 01:20:11,820
And then the one thing that you said that there was, if there's a number not to exceed, what's the incentive for them to not use up the whole budget?

1004
01:20:12,800 --> 01:20:15,740
I mean, wouldn't you, you were saying that hopefully there'd be some savings.

1005
01:20:15,740 --> 01:20:22,480
means we wouldn't get to that whole point, me as the greedy sales person that I normally

1006
01:20:22,480 --> 01:20:27,480
am, I mean, I'm going to use up the whole budget depending on, you know, in order to

1007
01:20:27,480 --> 01:20:31,320
utilize the budget, they have to serve a number of the other hours, right? And so, we have

1008
01:20:31,320 --> 01:20:36,020
to monitor for, okay, what is the vehicle frequency? On the fixed ground side, we haven't even,

1009
01:20:36,140 --> 01:20:39,940
we didn't, I don't think we're projecting to hit 54,000 hours this year because of just

1010
01:20:39,940 --> 01:20:45,020
driver shortages of that nature. And so, yes, I mean, there's certainly going to want to

1011
01:20:45,020 --> 01:20:50,340
maximize the number of hours that they want and we want to maximize the number of potential hours that we have transit services

1012
01:20:50,340 --> 01:20:57,680
Provided in an efficient way throughout our city, but part of that is monitoring those performance metrics as well and making sure that you know

1013
01:20:57,680 --> 01:21:03,640
Timeline S and how often the buses are running the service areas. Those are all key things for all we're getting from our dollars

1014
01:21:03,640 --> 01:21:10,700
No, and they have the ability to move it over to micro or on demand so that helps with the approval from the city

1015
01:21:10,700 --> 01:21:16,640
Right, and we would be thrilled for them to move as much of that as possible so that we can expand

1016
01:21:16,640 --> 01:21:22,720
And I think that's one of the the overall and whether it's helping additional and para transit and expanding some of those areas

1017
01:21:22,720 --> 01:21:29,060
So right as long as we continue to maintain, you know, the capacity to provide fixed route services, which I think is key to many of our

1018
01:21:30,780 --> 01:21:31,180
Riders

1019
01:21:32,060 --> 01:21:32,900
Awesome. Thank you

1020
01:21:33,320 --> 01:21:35,700
All right. Thank you. Any other questions from other constable?

1021
01:21:35,700 --> 01:21:36,300
Councilor Barranco.

1022
01:21:36,680 --> 01:21:41,200
So, if we're asked about like what's the cost of this contract, part of it you might

1023
01:21:41,200 --> 01:21:45,120
say we can't know exactly because we don't know how many rides we're going to be giving,

1024
01:21:45,240 --> 01:21:50,180
how many hours we're going to be utilized, but we're prepared and it seems like there are

1025
01:21:50,180 --> 01:21:55,660
some incentives that will drive the total cost up in this $12 million range.

1026
01:21:56,080 --> 01:22:00,720
However, in some ways that's good news because it means an enormous number of our stakeholders

1027
01:22:00,720 --> 01:22:05,500
are getting rides on public transit, presumably that's helping people get where they need

1028
01:22:05,500 --> 01:22:08,380
to go, presumably it's helping take cars off the street as well.

1029
01:22:08,880 --> 01:22:09,700
That's correct, it's good.

1030
01:22:10,960 --> 01:22:12,700
I have a couple of questions, Director.

1031
01:22:13,060 --> 01:22:18,960
First, going back to Councillor Say on the $400,000 fund, where will that be funded from?

1032
01:22:19,120 --> 01:22:25,380
Will that be funded from the current balance of the transit fund, or will that come from the unrestricted general fund?

1033
01:22:26,140 --> 01:22:30,680
So right now, I think we have enough money already sitting in first transit account.

1034
01:22:30,920 --> 01:22:35,000
So again, that's part of the transit fund, but it's now sitting in first transit.

1035
01:22:35,000 --> 01:22:36,360
that's already been transferred to them,

1036
01:22:36,780 --> 01:22:38,880
that'll be remaining after they see

1037
01:22:38,880 --> 01:22:41,320
providing management services on December 31st.

1038
01:22:41,400 --> 01:22:43,700
So we would, you know, take the first 400,000

1039
01:22:43,700 --> 01:22:45,400
and set it into the restricted account

1040
01:22:45,400 --> 01:22:47,540
and then we would shift everything back to the city

1041
01:22:47,540 --> 01:22:49,220
from that account, that fair.

1042
01:22:49,460 --> 01:22:51,020
We would take whatever's left after that

1043
01:22:51,020 --> 01:22:52,480
and put it back into the city's account.

1044
01:22:53,140 --> 01:22:55,660
And then you use the word turnkey

1045
01:22:56,140 --> 01:22:59,420
kind of moving to that type of management agreement.

1046
01:22:59,860 --> 01:23:01,760
Is there any levels of authority

1047
01:23:01,760 --> 01:23:06,960
that are changing for PTAB or the City of Council where this group is being given authority

1048
01:23:06,960 --> 01:23:11,120
that the previous group didn't have authority where maybe PTAB or Council had authority?

1049
01:23:12,000 --> 01:23:16,000
Not that I'm aware of. I mean those authorities are setting an ordinance or they're setting

1050
01:23:16,000 --> 01:23:21,120
executive order in at this point. I don't think there's the intent to shift any of that.

1051
01:23:21,420 --> 01:23:26,340
I don't want to speak for Director Ackoff but that's not really the intent to modify PTAB's

1052
01:23:26,340 --> 01:23:29,680
or the City Councils?

1053
01:23:29,820 --> 01:23:44,620
Okay, and my final item, I guess be a request, has there been, like, a five-year projection at all that now that you've got the contract in place and kind of the metrics of what the transit fund balance would look like over the next five years based upon the projected balance at the end of this year?

1054
01:23:45,340 --> 01:23:50,360
Well, you know, it's probably not materially different in the previous forecast that we've

1055
01:23:50,360 --> 01:23:53,860
put together based on the expanded model because that's what we budgeted for this year.

1056
01:23:54,320 --> 01:23:58,200
And then we factored in that the other factors in terms of growth over time.

1057
01:23:58,600 --> 01:24:01,380
I think we're going to have to give it some time and get through that first few months and

1058
01:24:01,380 --> 01:24:06,640
see what the analysis comes back from the Sioux Falls Transit before we would go back and

1059
01:24:06,640 --> 01:24:11,380
probably update that model to something differently because the unknowns, we just don't know what

1060
01:24:11,380 --> 01:24:13,880
to know yet that we might learn through this process, so.

1061
01:24:14,480 --> 01:24:15,800
Great, thank you so much.

1062
01:24:16,280 --> 01:24:17,460
Appreciate the presentation today,

1063
01:24:17,800 --> 01:24:19,360
and all the effort that's gone into it.

1064
01:24:19,980 --> 01:24:22,440
We'll now move to the public comment portion of our meeting.

1065
01:24:23,080 --> 01:24:25,200
Speakers are allowed up to five minutes to speak

1066
01:24:25,200 --> 01:24:28,120
on any topic covered during today's meeting,

1067
01:24:28,440 --> 01:24:29,300
any public input.

1068
01:24:33,880 --> 01:24:34,700
Thank you very much.

1069
01:24:34,800 --> 01:24:37,880
I was expecting some citizens to say this, okay?

1070
01:24:38,060 --> 01:24:42,320
So listen, it's good for the Israeli's to come up here

1071
01:24:42,320 --> 01:24:43,800
and try to partnership with people.

1072
01:24:43,800 --> 01:24:48,880
Has anyone reached out to the Arab community and the Muslim community?

1073
01:24:49,400 --> 01:24:50,820
No, we

1074
01:24:54,820 --> 01:24:59,520
can't put politics into this whatever's happening in Israel's in Israel. Let me tell you something

1075
01:25:00,200 --> 01:25:07,740
We have a war going on in the city, okay? We got human traffic and we got kids getting raped

1076
01:25:08,560 --> 01:25:17,080
Drug dealing kids with guns 12 13 years old selling dope for their parents six in Cleveland. I'm fixing to go out there

1077
01:25:17,800 --> 01:25:19,960
and help police that neighborhood for the police

1078
01:25:19,960 --> 01:25:23,040
because City Council's not listening to the police, okay?

1079
01:25:24,220 --> 01:25:26,240
So we have a catastrophe right here.

1080
01:25:26,660 --> 01:25:28,200
Nine year old getting raped.

1081
01:25:28,600 --> 01:25:29,820
We don't care about Israel.

1082
01:25:30,820 --> 01:25:33,900
So let's not help these people to go around the world.

1083
01:25:34,300 --> 01:25:35,920
We gotta help within our community.

1084
01:25:37,020 --> 01:25:39,580
So there won't be a council member like me

1085
01:25:39,580 --> 01:25:41,040
because when I look over here,

1086
01:25:41,040 --> 01:25:42,240
I see a bunch of Nancy Pelosi.

1087
01:25:42,640 --> 01:25:44,920
They don't know what the hell's going on

1088
01:25:44,920 --> 01:25:46,340
in city government they wanna run.

1089
01:25:46,760 --> 01:25:51,480
They look so incompetent here. They don't even know their right from their left hand sitting out here in the audience.

1090
01:25:51,880 --> 01:25:58,840
It's it's pitiful. It's sad because rich people are sponsoring them and making them come up here and run and don't have no clue about government.

1091
01:25:59,040 --> 01:26:02,060
It's statement. It's statement.

1092
01:26:04,570 --> 01:26:12,370
I don't give a damn about Israel. What we need to give a damn about is what's going on in our city right now because we have a war.

1093
01:26:12,370 --> 01:26:20,070
We have gang members shooting gang members right down Cleveland wake up wake up council members has been here for eight years. They're

1094
01:26:20,070 --> 01:26:21,230
They're called amnesia

1095
01:26:21,890 --> 01:26:24,350
They're murdering starving right there

1096
01:26:25,150 --> 01:26:27,650
Our people our black people

1097
01:26:29,920 --> 01:26:33,120
Our native where's the native community helping the natives?

1098
01:26:33,120 --> 01:26:37,820
I have to go out here and battle these black people because they're uneducated out here

1099
01:26:37,820 --> 01:26:42,000
That's what you call a war. We need to help those people and that neighborhood

1100
01:26:42,000 --> 01:26:47,320
because I'm risking my life out there for that and you know how I can relate

1101
01:26:47,320 --> 01:26:50,600
because I grew up in the hood and I'm a part African-American and I can get

1102
01:26:50,600 --> 01:26:56,080
down with it. None of y'all can do that. But when Christianity says that in a

1103
01:26:56,080 --> 01:27:00,400
Bible get your hands dirty and put blood on you from the Jesus of Christ, they

1104
01:27:00,400 --> 01:27:05,360
don't say you're Christian unless you done it. So before we listen to these

1105
01:27:05,360 --> 01:27:10,780
racially people, we better go help Cleveland Avenue and I again, every single

1106
01:27:10,780 --> 01:27:14,460
councilmember, I'm meeting it. Chief Trump cannot get up here in the police

1107
01:27:14,460 --> 01:27:19,940
department and say this. Chief Trump will be out of office and you ask these

1108
01:27:19,940 --> 01:27:25,100
policemen. They will not have a job tomorrow. If they would come up here with

1109
01:27:25,100 --> 01:27:29,820
issues, it's facts. Every single councilmember, don't tell me they can come up here

1110
01:27:29,820 --> 01:27:33,900
again, will not have a job tomorrow. You think the union protects them?

1111
01:27:33,900 --> 01:27:35,200
absolutely not.

1112
01:27:40,000 --> 01:27:44,520
Exit Cleveland all the way to 26 in Cleveland. Let's go help

1113
01:27:44,520 --> 01:27:49,680
those policemen. Let's get a crime under control. That's Israel. We have

1114
01:27:49,680 --> 01:27:53,960
throw-row country people right now that slice each other up with knives out

1115
01:27:53,960 --> 01:27:59,720
there. Pulling guns on people out there, drug dealing, pimping, prostitution,

1116
01:28:02,140 --> 01:28:02,320
kids,

1117
01:28:03,140 --> 01:28:06,200
sex assaults, and kids getting sex assaults because in their country they think

1118
01:28:06,200 --> 01:28:13,380
legal. Kids, I can't even tell you the nine-year-old that just happened to you. Does that get

1119
01:28:13,380 --> 01:28:16,700
reported to the police? Yes. Do they follow through with it in court now?

1120
01:28:19,440 --> 01:28:20,460
So while we hugging

1121
01:28:20,460 --> 01:28:25,020
it, we kissing back to the Israel state, I thought tonight that's thickening, let's go kiss up to the

1122
01:28:25,020 --> 01:28:31,780
police department and help stick the clean blood. Get in my car and let's go do this because not

1123
01:28:31,780 --> 01:28:35,820
never want to go bidding a hoodie could relate. You'll think y'all can get out there with a pistol with

1124
01:28:35,820 --> 01:28:39,800
me and say put the pistol down you're going to box me and let's box. We're going to clean up

1125
01:28:39,800 --> 01:28:44,420
this neighborhood because there's no sense that criminals should take over a neighborhood like this.

1126
01:28:44,940 --> 01:28:51,100
No sense that the police department and our taxpayers is paying for a war in Israel on Cleveland and

1127
01:28:51,100 --> 01:28:55,180
this one customer will laugh it but he's not going to get out there because he don't have enough

1128
01:28:55,180 --> 01:29:02,460
balls to get out there and go into the war and help it really. But he thinks that's why there's

1129
01:29:02,460 --> 01:29:09,530
police bar. We have the police to do everything don't we? I can't wait to this

1130
01:29:09,530 --> 01:29:13,450
elections over because some of them need to get up off their seats. They have

1131
01:29:13,450 --> 01:29:18,310
night-night crop in eight years. That I have done in a three years and I don't

1132
01:29:18,310 --> 01:29:23,310
get paid for it. So walk up in my shoes what they laughing. Because right now I'm

1133
01:29:23,310 --> 01:29:27,110
going to six equipment when I leave here and I'm going to get my hands dirty in the

1134
01:29:27,110 --> 01:29:27,430
crime.

1135
01:29:31,010 --> 01:29:36,070
Any other members of the public wish to address the council? Seeing none and

1136
01:29:36,070 --> 01:29:38,350
and see no further business, this meeting is adjourned.

1137
01:29:38,550 --> 01:29:38,810
We

1138
01:29:48,790 --> 01:29:50,330
are now the host of this meeting.

1139
01:29:50,750 --> 01:29:52,310
Waiting for others to join.