1 00:00:28,160 --> 00:00:36,559 It's now 6:00. We'll call the meeting to order. The open meeting pamphlet is um 2 00:00:33,680 --> 00:00:40,640 on the desk there um for you to review. Um Gary, we take 3 00:00:38,800 --> 00:00:42,160 » Buckminister here. Ferguson >> here. Forac 4 00:00:41,760 --> 00:00:43,200 » here. >> Caster 5 00:00:42,800 --> 00:00:44,559 » here. >> Frank 6 00:00:43,760 --> 00:00:45,920 » here. Kenny >> here. 7 00:00:45,120 --> 00:00:50,840 » Leen >> here. 8 00:00:47,520 --> 00:00:50,840 Please rise 9 00:00:53,199 --> 00:01:00,719 to the flag of the United States of America and to the republic for which it 10 00:00:57,920 --> 00:01:06,159 stands. One nation under God, indivisible, with liberty and justice 11 00:01:03,039 --> 00:01:10,880 for all. >> Mayor's report is not here. So there is 12 00:01:07,920 --> 00:01:15,680 none. City minister report. Um I don't have anything. 13 00:01:14,000 --> 00:01:21,360 Do you have anything? All right, we'll move on. We're going to 14 00:01:17,680 --> 00:01:28,000 go to um item number one, agenda approval. I make the motion that we move 15 00:01:23,920 --> 00:01:32,640 the uh tanasa discussion um from number seven to let's remove we're going to 16 00:01:30,799 --> 00:01:36,640 remove the agenda approval out of the consent. So we'll approve everything but 17 00:01:34,240 --> 00:01:42,320 the agenda. Then we'll go back and we'll approve an amendment to the agenda. 18 00:01:39,520 --> 00:01:49,200 » All right. A consent agenda minutes of approval for August 17th, 2026. Claims 19 00:01:45,040 --> 00:01:52,200 approval for September 9th, 2026. >> Motion 20 00:02:04,240 --> 00:02:10,879 push. >> All right. 21 00:02:07,920 --> 00:02:15,120 Going back to agenda approval, as I stated, I'd like to move item number 22 00:02:12,640 --> 00:02:25,959 seven, tenasa agreement recommended by public works down uh to number 10, the 23 00:02:18,800 --> 00:02:25,959 last item um for the we'll probably exot 24 00:02:29,200 --> 00:02:35,200 » number six to the end of the agenda. >> You said seven, but 25 00:02:33,040 --> 00:02:39,640 » well, I got seven on mine. Sorry. That's okay. The tenasa 26 00:02:46,319 --> 00:02:52,879 » yes. >> All right. Moving on to old business 27 00:02:50,959 --> 00:02:57,920 discussion and action. Second reading reading of ordinance 2026-102 28 00:02:55,840 --> 00:03:02,640 to provide for regulation of bicycles, ebikes, scooters, e scooters, 29 00:02:59,680 --> 00:03:07,360 skateboards, e skateboards, hover boards, and skates. Review the Ordinance 30 00:03:05,680 --> 00:03:12,560 2026-102. >> Ordinance number 2026-102. 31 00:03:10,640 --> 00:03:18,720 An ordinance to regulate the use and operation of bicycles, ebikes, scooters, 32 00:03:15,920 --> 00:03:24,879 e- scooters, skateboards, e skateboards, hoverboards, and skates to repeal the 33 00:03:21,680 --> 00:03:31,280 current section 5-501 of the false city municipal code and all other sections in 34 00:03:27,599 --> 00:03:39,120 conflict here with. So, I talked to um our attorney and he 35 00:03:35,120 --> 00:03:42,120 made all the u amendments from the last meeting. 36 00:03:45,360 --> 00:03:52,680 That's I don't know if anybody has any other thing to discuss on it. 37 00:03:52,959 --> 00:03:59,439 » Do I need to bring up what I talked about earlier? 38 00:03:57,280 --> 00:04:04,480 » You can. Um, there's issues with kids riding in 39 00:04:02,319 --> 00:04:10,080 the parks and it's not really labeled in there 40 00:04:08,080 --> 00:04:14,560 about not riding in the parks. So, I don't know if we need to amend something 41 00:04:11,599 --> 00:04:20,040 about >> We got a park specifically for that 42 00:04:20,479 --> 00:04:26,759 1920 street, right? State ramps. 43 00:04:28,479 --> 00:04:32,479 Well, I know that, but if you say ballparks, then you'd have to exclude 44 00:04:31,600 --> 00:04:38,160 that one. See? >> Yeah. I mean, parks in general, I guess. 45 00:04:35,600 --> 00:04:43,520 But I got a complaint this morning that there's kids driving through the 46 00:04:40,720 --> 00:04:45,840 softball games and all that. So, I was just 47 00:04:44,080 --> 00:04:51,520 » like in the parking lots or just in the grass or just 48 00:04:48,240 --> 00:04:56,880 » I mean, have you seen it sidewalks where people are standing? 49 00:04:54,880 --> 00:05:01,199 Sorry. >> Um, I've seen it myself. Jenny Jenny 50 00:04:59,280 --> 00:05:07,520 struck her. Um, I've seen it myself at softball games and they ride on the 51 00:05:02,880 --> 00:05:14,479 sidewalks, um, through the parking lots, through grass. I mean, on the splash 52 00:05:10,080 --> 00:05:20,400 pad, it's pretty much everywhere. >> So, there's nothing specific calling out 53 00:05:18,560 --> 00:05:26,880 there. No, but we have uh ramps at a city park. 54 00:05:24,960 --> 00:05:29,600 See what I mean? Because we have skateboard. We have skateboards on. We 55 00:05:28,479 --> 00:05:35,840 have a skateboard. >> Yeah. 56 00:05:31,759 --> 00:05:41,199 » My only issue with matter. Yeah. I'm sorry. This comes down to parenting more 57 00:05:38,080 --> 00:05:45,600 than a damn city. And I mean and and teaching kids to be respectful, but boy, 58 00:05:43,840 --> 00:05:49,440 I would think parks are about the safest place you want them. And I mean, I'd 59 00:05:47,039 --> 00:05:54,919 like them there. like go down the streets elsewhere. But 60 00:05:55,360 --> 00:06:02,479 » yeah, it's just an empty park or a park full of 61 00:06:00,160 --> 00:06:06,800 » I mean that's that's the tough part is right now the park's probably empty and 62 00:06:04,240 --> 00:06:10,080 it's okay. But come softball day or any other day 63 00:06:08,479 --> 00:06:12,800 is somebody else in a lawn chair or 64 00:06:11,759 --> 00:06:17,039 something. >> And I get it. It would be frustrating, 65 00:06:14,560 --> 00:06:21,600 but boy, like right now, Morehead Park, like I'd rather them be there than 66 00:06:18,800 --> 00:06:25,520 riding downtown, you know? So, I don't want to like say you can't be in a park. 67 00:06:23,600 --> 00:06:29,520 Yeah. I don't know. That's just that's a tough one because then that would be 68 00:06:27,440 --> 00:06:32,720 Stanton's Lake, too. And that's half the time it's empty. 69 00:06:31,199 --> 00:06:36,000 » I was just asked this question. No, no, I'm not I'm not saying I'm just saying 70 00:06:34,319 --> 00:06:39,600 it's just >> I think before this even brought up in 71 00:06:37,840 --> 00:06:44,160 the entire country, it was a parenting issue before any city in the United 72 00:06:42,479 --> 00:06:47,039 States. But >> well, what we're doing with this is 73 00:06:45,440 --> 00:06:51,199 getting some teeth to it. So you have some regulation, you get the the law 74 00:06:49,680 --> 00:06:55,280 enforcement, an ordinance to act on. So if you have 75 00:06:53,360 --> 00:07:00,160 complaints, you can, you know, if you got restrictions, but this is the second 76 00:06:58,720 --> 00:07:03,360 time we've amended it. >> Yeah. 77 00:07:01,680 --> 00:07:07,120 Like Jamie, what happen if there is a softball game going on and there's kids 78 00:07:05,680 --> 00:07:10,479 riding their bikes down there on the sidewalks and weaving in and out people? 79 00:07:09,280 --> 00:07:13,280 If there's no ordinance, there's nothing you can do about it. 80 00:07:12,400 --> 00:07:15,280 » Talk to the kids. >> Yeah, talk to the kids. Only thing I 81 00:07:14,720 --> 00:07:17,120 mean, >> talk to the parents. 82 00:07:16,000 --> 00:07:22,080 » Yep. I mean, >> I agree. It's a parenting issue. 83 00:07:20,160 --> 00:07:28,120 I wish you had tickets for common sense, but 84 00:07:24,479 --> 00:07:28,120 » he wouldn't have a ticket. 85 00:07:31,039 --> 00:07:35,000 » I'm going to make a motion to 86 00:07:46,319 --> 00:07:52,960 Yes. Moving on to regular business. Uh, 87 00:07:50,639 --> 00:07:56,120 represent from HPE, uh, will you present the audit? 88 00:08:05,039 --> 00:08:11,759 » So, good evening. I'm Kylie Wickman >> and I'm Luke Post. 89 00:08:08,960 --> 00:08:18,720 » We're from HBA. This is our first year doing the audit. We're presenting the 90 00:08:14,160 --> 00:08:22,319 September 30, 2025 year end. Um, so we will just kind of go over the highlights 91 00:08:20,800 --> 00:08:26,160 and if you have any questions, let us know. 92 00:08:23,840 --> 00:08:32,000 The first couple pages in the packet is our audit report. And so there in the 93 00:08:29,440 --> 00:08:35,599 second paragraph, we give our opinion and we note that the accompanying 94 00:08:33,519 --> 00:08:41,039 financials present fairly in all material respects. So that is a clean 95 00:08:38,320 --> 00:08:45,360 unmodified audit opinion. The rest of the report goes on to note 96 00:08:43,200 --> 00:08:49,440 that you all as management and the council are responsible for the 97 00:08:47,200 --> 00:08:54,160 financials and the information in them. And then our responsibility is to audit 98 00:08:51,519 --> 00:08:59,360 that information. And so to do that, we do a lot of planning ahead of time. We 99 00:08:56,880 --> 00:09:03,040 do a risk assessment so we can focus on what we think are the riskiest areas of 100 00:09:01,360 --> 00:09:08,399 your audit. um we um we can do all that planning. So 101 00:09:07,040 --> 00:09:11,920 then we can do the field work where we're actually looking at invoices, 102 00:09:09,920 --> 00:09:15,279 asking questions, um looking at your controls and 103 00:09:13,440 --> 00:09:20,160 processes. And so at the end of all that, we're able to issue this opinion. 104 00:09:18,640 --> 00:09:24,240 And the back of the financials, there's also a supplemental schedule on a budget 105 00:09:22,640 --> 00:09:29,040 comparison. And then we have a couple other reports on your um internal 106 00:09:27,279 --> 00:09:32,640 controls and financial reporting that we'll go over then. 107 00:09:31,200 --> 00:09:36,240 » Okay. I'm going to run through the numbers pretty quick. I'm just going to 108 00:09:34,399 --> 00:09:40,720 give a high level overview and call out a couple of items um I think warrant 109 00:09:38,720 --> 00:09:45,279 just a little bit of attention. So the city of false city runs their financials 110 00:09:42,399 --> 00:09:49,440 on the full acral basis that's with US GAP governments gap. So this statement 111 00:09:47,600 --> 00:09:53,200 in that position both the governmental activities and the business type 112 00:09:50,720 --> 00:09:58,160 activities is full acral basis. You'll note this has capital assets PP&E 113 00:09:56,160 --> 00:10:02,640 long-term debt um statement of activities. This is 114 00:10:00,399 --> 00:10:06,959 going to be see on this screen and I'm not going to rotate it because I'll get 115 00:10:04,399 --> 00:10:11,600 lost on here. But uh basically this again this is full acrual basis. This is 116 00:10:09,920 --> 00:10:15,120 loans when they're paid are not expenses. It's a reduction in the 117 00:10:13,120 --> 00:10:18,480 liability. Same with capital assets purchase. It's not an expense. It goes 118 00:10:16,800 --> 00:10:24,560 to a capital asset then it's taken depreciation. When we get to the funds 119 00:10:22,640 --> 00:10:27,680 even though the city is full acral basis this is how governmental accounting 120 00:10:25,839 --> 00:10:33,279 works. These are on what is considered the economic resource basis. You'll note 121 00:10:30,160 --> 00:10:38,320 there's not loans payable here. There's not capital assets here. So between the 122 00:10:35,839 --> 00:10:42,560 two schedules, there's a reconciliation. Mainly those are the two items. There 123 00:10:40,240 --> 00:10:46,720 are a couple smaller items, but as you look through the financials, those are 124 00:10:44,240 --> 00:10:50,959 the reconciling items here on the fund financials. I'll point out because the 125 00:10:48,959 --> 00:10:54,800 capital improvement has an inter fund note receivable from general. When you 126 00:10:53,200 --> 00:10:58,160 go to that statement of net position, the governmental funds are brought 127 00:10:56,079 --> 00:11:02,480 together. those are eliminated when they get brought together because it's all 128 00:10:59,440 --> 00:11:07,440 within the governmental funds. Um, and then so here as promised is a 129 00:11:05,200 --> 00:11:11,200 reconciliation between the fund balance on the governmental funds and the 130 00:11:09,600 --> 00:11:15,120 governmentwide financials. So those recon items, like I said, the main ones 131 00:11:12,880 --> 00:11:18,640 are your long-term debt and your capital assets. 132 00:11:17,120 --> 00:11:23,360 And then we've got the receipts and dispersements of the governmental funds. 133 00:11:20,880 --> 00:11:27,839 Here you will note principal payments are recorded as an expense because the 134 00:11:25,440 --> 00:11:32,079 fun have a loan in it. So when the money is paid on the loan here, it's shown as 135 00:11:29,920 --> 00:11:37,360 an expense. This how governmental accounting is done when it's done to the 136 00:11:33,920 --> 00:11:42,480 full acral basis. And another recon this is on the profit and loss side as 137 00:11:39,040 --> 00:11:46,399 opposed to the balance sheet side. Um so now we have the business type 138 00:11:44,399 --> 00:11:52,720 activities. These are full acrual basis. So these funds have the loans in them 139 00:11:49,360 --> 00:11:59,440 have the capital assets in them. So they are um not the same as the governmental 140 00:11:55,279 --> 00:12:05,839 funds. Um and so we have operating revenues, operating expenses. Um 141 00:12:03,200 --> 00:12:10,480 moving on, cash flows. The business funds have a cash flow to them. I 142 00:12:07,920 --> 00:12:17,760 recommend reviewing the operating activities. Um sewer is showing a 143 00:12:13,440 --> 00:12:21,680 negative operating cash amount. Um next year I want to bring to your 144 00:12:19,519 --> 00:12:26,000 attention this schedule will change. There's a new Gazsby. There's going to 145 00:12:23,600 --> 00:12:30,480 be some language change. It mostly operates in the same way, but there's 146 00:12:27,839 --> 00:12:34,079 going to be labeling as subsidies. Other items when we're here next year, we'll 147 00:12:32,000 --> 00:12:37,839 walk through all of it. It's roughly the same thing, but some terminology is the 148 00:12:35,920 --> 00:12:41,680 same because Gazsby can't leave things alone. 149 00:12:39,680 --> 00:12:45,519 Um, so then you have the notes. I recommend reviewing these. These give 150 00:12:43,680 --> 00:12:52,240 more information to the statements we provided. Um, as Kylie mentioned, there 151 00:12:49,920 --> 00:12:56,560 is a required supplementary statement. This is RSI. This will also change 152 00:12:54,880 --> 00:12:59,920 slightly next year under that same accounting standard, but I want to point 153 00:12:58,480 --> 00:13:04,399 to your attention, this is budgetary basis. So, these items are essentially 154 00:13:02,320 --> 00:13:08,399 on the cash basis. Same way you're you're doing your budget right now. It's 155 00:13:06,079 --> 00:13:12,000 on that same basis. So, now we have the governmental 156 00:13:10,160 --> 00:13:16,000 auditing standards letter. So the internal controls, this is going to be 157 00:13:13,839 --> 00:13:20,480 the main event of what I have to communicate with you today. I have 10 158 00:13:18,560 --> 00:13:25,360 material weaknesses on these financial statements. 159 00:13:22,959 --> 00:13:30,480 So starting with 202501, we have an inade adequate segregation of 160 00:13:27,760 --> 00:13:34,800 duties. We believe the city probably has enough staff to have a proper 161 00:13:32,639 --> 00:13:39,200 segregation of duties, but you'll note as we go through these findings, the 162 00:13:36,560 --> 00:13:46,560 internal controls were not there. So we were not going to give a opinion on the 163 00:13:43,120 --> 00:13:50,399 um segregation of duties um with the amount of internal control issues that 164 00:13:48,160 --> 00:13:54,880 we've identified. Um looking at 202502, this is financial 165 00:13:53,040 --> 00:13:58,720 statement prep. So this is a finding I don't expect you to be able to fix. 166 00:13:56,880 --> 00:14:02,720 There is a risk when we prep your financials. If I don't talk to Gary 167 00:14:00,959 --> 00:14:06,800 properly, I could put something in these financials that could be wrong. There's 168 00:14:05,199 --> 00:14:11,519 a risk. There's not really much you can mitigate to do that. an organization of 169 00:14:09,199 --> 00:14:17,920 this size is an expected finding. You'll you'll have that 170 00:14:13,839 --> 00:14:22,240 2023 is uh or excuse me 202503 is material audit adjustments. So when we 171 00:14:20,560 --> 00:14:27,199 receive the trial balance and numbers from the city, we expect those to be 172 00:14:24,800 --> 00:14:30,480 close to what we audit them to. Some of these material audit adjustments I'm 173 00:14:28,800 --> 00:14:34,320 going to give more detail on in the rest of the findings, but they are not all 174 00:14:32,959 --> 00:14:38,000 listed in the rest of the findings. There are more material audit 175 00:14:35,680 --> 00:14:42,399 adjustments that we had to make to bring these into a clean financial statement 176 00:14:40,000 --> 00:14:48,880 set than are even listed in these next few findings. 177 00:14:44,880 --> 00:14:54,399 So finding 2024 or 202504 beginning fund balance and net position. 178 00:14:52,720 --> 00:14:59,839 So depending on which fund you're looking at net position 179 00:14:56,880 --> 00:15:04,079 fund balance was off by over 12 million in the electric fund. This is what that 180 00:15:02,240 --> 00:15:08,399 means. The paper financial statements from last year should match your 181 00:15:06,560 --> 00:15:12,800 accounting system because beginning balances this year should match final 182 00:15:10,639 --> 00:15:17,680 balances last year. The accounting system, frankly, they weren't close. The 183 00:15:15,600 --> 00:15:22,880 accounting system was not updated to match these paper financials that were 184 00:15:19,680 --> 00:15:25,440 issued last year. And you'll note um I'm going to go through these at a high 185 00:15:23,920 --> 00:15:30,320 level. The details are there for your for your review. Um if you have 186 00:15:27,680 --> 00:15:35,199 questions, please stop me. Um, so number five, reconciled cash balances not 187 00:15:32,959 --> 00:15:40,480 reflected in the trial balance. So this one is a little backwards, but I want to 188 00:15:36,959 --> 00:15:45,839 explain it. When we came in, the reconciled the reconciliations provided 189 00:15:43,680 --> 00:15:51,519 were pretty accurate. The accounting numbers did not match them. So cash was 190 00:15:48,880 --> 00:15:55,759 off um in various funds, sometimes up to $2 million. The cash did not reflect 191 00:15:53,920 --> 00:15:58,920 what was actually in the statements in the funds. 192 00:15:59,839 --> 00:16:06,320 202506 unreconciled interf fund transfers. The 193 00:16:04,480 --> 00:16:11,680 only place a transfer go is another transfer. Transfer should net to zero. 194 00:16:08,959 --> 00:16:15,519 Transfer is netted to 2.5 million. So that means there was activity. A 195 00:16:13,440 --> 00:16:23,120 transfer can't cause activity. A transfer should only go to a transfer. 196 00:16:19,120 --> 00:16:29,040 Um number seven, uh accounting for state grant proceeds. So, the city received a 197 00:16:26,000 --> 00:16:33,440 $15 million state grant for the large utility transmission project. That grant 198 00:16:31,120 --> 00:16:37,360 was awarded during the fiscal year. Cash was paid. Cash is in the city's 199 00:16:35,680 --> 00:16:43,759 accounts. Those um entries were made some in I 200 00:16:41,839 --> 00:16:47,519 believe it's June, July, August. Some entries were made in each of those 201 00:16:45,279 --> 00:16:52,399 months. When you net up the entries that were made, they all net to zero. The 202 00:16:50,560 --> 00:16:57,279 city did not record a scent of the revenue from the $50 million grant once 203 00:16:54,880 --> 00:17:00,399 all the entries are put together and reviewed. 204 00:16:59,199 --> 00:17:05,439 » You had the cash in the bank. >> You had the cash. It's in the bank, 205 00:17:02,880 --> 00:17:10,600 » but the revenue was there at one point, but once the rest of the entries were 206 00:17:07,120 --> 00:17:10,600 made, it was gone. 207 00:17:11,439 --> 00:17:19,919 » Um, number eight, unrecorded accounts payable. Um, so the city is on the full 208 00:17:16,640 --> 00:17:25,199 approval basis. When we came into audit accounts payable, some of the items left 209 00:17:22,400 --> 00:17:31,039 over were legacy and weren't we had to clean a bunch of it up. And even as we 210 00:17:28,400 --> 00:17:35,520 um were provided some payables, we have tests we do for search of payables and 211 00:17:33,600 --> 00:17:39,440 we found material missing items as part of those tests and got those into the 212 00:17:37,200 --> 00:17:45,360 financials. Um number nine, capital asset 213 00:17:41,679 --> 00:17:49,039 depreciation records. So the city has five funds general and the four 214 00:17:47,440 --> 00:17:52,240 utilities that have a large amount of capital assets in them and those 215 00:17:50,559 --> 00:17:55,360 schedules should reflect the flow with the financials. They should tie to the 216 00:17:53,600 --> 00:18:00,559 beginning balances, current year activity, additions, disposals, 217 00:17:57,600 --> 00:18:06,960 depreciation helps reduce there. Those should all tie some of the um air or the 218 00:18:04,960 --> 00:18:12,480 uh prior period adjustments we had to beginning balances. These schedules had 219 00:18:09,360 --> 00:18:17,520 math errors in them. They frankly have some legacy items that need cleaned up. 220 00:18:14,640 --> 00:18:21,760 These schedules need major work. They have a lot of items that need reviewed 221 00:18:19,440 --> 00:18:24,640 even still now. That is going to be a project that we're going to be working 222 00:18:23,200 --> 00:18:31,760 on going forward and getting those cleaned up. I know the schedules are 223 00:18:27,120 --> 00:18:36,400 also used some for the uh insurance. And while those two schedules can work in 224 00:18:33,840 --> 00:18:39,600 tandem, using them for both, they do have different criteria. So not 225 00:18:38,080 --> 00:18:43,919 everything's the same that needs to be there. one for the insurance listing and 226 00:18:41,520 --> 00:18:48,000 for the financial statements. So, while that can they can piggyback each other 227 00:18:46,000 --> 00:18:53,520 and be reconciled to each other, I would caution you to use the same schedule for 228 00:18:50,720 --> 00:19:00,640 both of those tasks. And then number 10 is incomplete and 229 00:18:57,039 --> 00:19:05,679 accurate debt records. So, one loan reflected in I believe it is the sewer 230 00:19:03,520 --> 00:19:11,520 fund, the wastewater fund um that was recorded last year, that loan didn't 231 00:19:07,919 --> 00:19:15,600 exist. we perform procedures. It must have been paid off years ago or 232 00:19:13,360 --> 00:19:21,360 it was overstated. So that loan was in the financials last year. We've taken it 233 00:19:17,280 --> 00:19:28,559 out. And then also we have one loan um as part of the CRA that was back from 234 00:19:25,120 --> 00:19:31,919 2021 currently outstanding balance of 166,000. 235 00:19:30,080 --> 00:19:34,799 That was not recorded in the financials this whole time. We found that during 236 00:19:33,280 --> 00:19:41,679 audit testing that has now been reflected in the long-term debt. 237 00:19:38,559 --> 00:19:45,520 Um so those are my findings, our findings. We have um the corrective 238 00:19:43,840 --> 00:19:49,200 action plan. This will be filled out by the city. There will be this will be 239 00:19:47,440 --> 00:19:53,600 filled out and signed put on the city flutter head appended into the final 240 00:19:50,799 --> 00:19:58,320 version that's submitted to the state. So I walked through a lot of findings. 241 00:19:55,679 --> 00:20:03,840 So we did issue a clean audit opinion. The way we were able to do that is we 242 00:20:00,559 --> 00:20:09,679 put the staff through hell. We drug through but we were able to get back 243 00:20:06,640 --> 00:20:14,160 into to and fix and understand and get documentation to a place that we were 244 00:20:12,160 --> 00:20:18,880 comfortable giving that clean opinion. And I want to give I want to give Gary 245 00:20:16,480 --> 00:20:24,799 and his staff credit because we did a ton of work on this. We had to go back 246 00:20:22,480 --> 00:20:30,240 through records and ask and get more documentation and ask again and more 247 00:20:26,559 --> 00:20:34,720 documentation. So, I would like to give Gary my thanks for that because if Gary 248 00:20:32,240 --> 00:20:42,760 hadn't been here, I don't know how we would have issued an audit for you. 249 00:20:38,000 --> 00:20:42,760 This was um 250 00:20:43,600 --> 00:20:49,440 » yeah, this was a a challenge. >> Um 251 00:20:47,280 --> 00:20:54,000 » so I mean as you can see with all the findings and how we're letting you know 252 00:20:50,960 --> 00:20:58,559 that this was a lot of work. Um we are going to have to build extra 253 00:20:56,640 --> 00:21:01,760 from our original proposal. There was just a lot we didn't know about. you 254 00:21:00,400 --> 00:21:07,200 know, we want to be fair to you, but also we probably had over double or 255 00:21:05,120 --> 00:21:12,159 triple the time that we anticipated that this audit would take. Um, so we're 256 00:21:10,559 --> 00:21:17,440 going to look through that for your final audit bill. Um, but you know, we 257 00:21:15,280 --> 00:21:21,360 know your next year end is coming up. We think, you know, next year you're going 258 00:21:19,280 --> 00:21:25,360 to be able to get there to correct some of these things. maybe I don't know 259 00:21:23,679 --> 00:21:29,360 hopefully by year end if not this year next year you know that we we're 260 00:21:27,520 --> 00:21:34,000 confident that we can continue to work with you going forward and that we're 261 00:21:31,520 --> 00:21:37,880 going to see some improvements that's the good news out of it 262 00:21:39,039 --> 00:21:44,799 have any questions for us or anything you want to add Gary 263 00:21:42,720 --> 00:21:50,080 » well there's a few things here maybe can't answer them but like uh you guys I 264 00:21:47,760 --> 00:21:54,400 Gary might even know too like on the 25-007 265 00:21:51,679 --> 00:21:58,320 The $15 million shows it's recorded 26 lines of entries in June, July, and 266 00:21:56,799 --> 00:22:02,240 August on that. 267 00:22:00,240 --> 00:22:06,320 I mean, I'm sure I wouldn't know, but I What you're saying is that's pulled in 268 00:22:03,520 --> 00:22:12,720 and out 26 times. Don't know where it was put. We we so what happened is it 269 00:22:09,600 --> 00:22:19,280 was reported correctly in the utility fund and then it was moved to the CRA 270 00:22:16,080 --> 00:22:26,400 physically moved to the CRA which is the same bank and then it was moved from the 271 00:22:22,080 --> 00:22:32,880 CRA back. So every time they made entries, there was entries for every 272 00:22:29,280 --> 00:22:40,720 time it moved and it could be transfers in, transfers out, cash, investments. So 273 00:22:38,320 --> 00:22:45,200 it took me a while to go through and figure that out. 274 00:22:42,320 --> 00:22:49,679 » Then my I guess need council might help me on this one, too. When we did that 15 275 00:22:47,360 --> 00:22:53,520 million, I mean, not do the audit, but I thought we talked about we're going to 276 00:22:51,280 --> 00:22:57,039 draw interest off that if you put it If you put it in your draw interest or 277 00:22:55,440 --> 00:23:02,200 something, you still move it back. I guess money. I'm looking at Derek 278 00:22:58,799 --> 00:23:02,200 because he's a 279 00:23:03,360 --> 00:23:10,960 » take. >> It's currently in a seedar account. 280 00:23:07,840 --> 00:23:16,080 Cedars. So that's currently in there. >> The money wasn't 281 00:23:13,520 --> 00:23:22,559 the money was moved before it was in the seedars. So it was after you got it. It 282 00:23:19,679 --> 00:23:27,760 was moved from like I said fund to fund and then account to account and trying 283 00:23:25,200 --> 00:23:32,480 to account for it to be moved and that I think that's where the confusion got 284 00:23:30,320 --> 00:23:34,240 » still going in and out. Okay. 285 00:23:33,919 --> 00:23:37,760 » Yep. >> Okay. 286 00:23:35,360 --> 00:23:40,000 » Is on the financial reporting side of it. 287 00:23:38,000 --> 00:23:45,159 » Yeah. The accounting piece was the issue. 288 00:23:41,039 --> 00:23:45,159 » I understand that now. Thank you. 289 00:23:49,760 --> 00:23:55,919 Do we have any more questions or motion to approve this? 290 00:23:53,440 --> 00:24:00,400 » Thank you for cleaning up our mess. >> Thank you. 291 00:23:56,960 --> 00:24:04,080 » Yes. Very motion to approve. 292 00:24:01,679 --> 00:24:08,960 » Second favor. 293 00:24:06,159 --> 00:24:12,360 » Yes. >> Thank you again. 294 00:24:13,919 --> 00:24:17,200 » I have item number three. 295 00:24:17,279 --> 00:24:22,200 No, you're fine. >> Okay. 296 00:24:22,640 --> 00:24:29,440 » Discussion and action. Appointment of Rick Johnson and Jerry Eler to the 297 00:24:27,200 --> 00:24:35,000 majority. >> Motion to approve. 298 00:24:32,000 --> 00:24:35,000 » Favor. 299 00:24:37,919 --> 00:24:44,159 » Yes. >> Item number three, discussion and 300 00:24:41,760 --> 00:24:47,400 action. appointment of Levi Jones as police officer. 301 00:24:49,279 --> 00:24:57,200 Uh Levi left the police department uh on another business venture and then came 302 00:24:55,039 --> 00:25:02,400 back to work for the city and has since requested transfer back. 303 00:25:00,000 --> 00:25:08,640 He is a full-time janitor with the city. He went through the uh 304 00:25:04,960 --> 00:25:12,000 interview process and the push forward. Think he'd be a good addition and I 305 00:25:10,880 --> 00:25:15,000 think the guys are excited to have him back 306 00:25:15,279 --> 00:25:19,360 in that 10th position. >> He has to go to school, right? 307 00:25:18,400 --> 00:25:23,360 » He's good. >> Yeah. 308 00:25:21,279 --> 00:25:27,960 » He had 32 hours of training and >> yeah, we've already completed all of his 309 00:25:24,960 --> 00:25:27,960 requirements. 310 00:25:35,440 --> 00:25:38,600 Thank you. 311 00:25:42,080 --> 00:25:51,919 » Yes. Um discussion before discussion and 312 00:25:47,760 --> 00:25:56,400 action curb cut on 521 to the court construction. So there's a request um 313 00:25:54,559 --> 00:26:01,520 they're building duplex there. So he had a request to do a curb cut and the 314 00:25:58,559 --> 00:26:08,360 council has to approve it. So um item four and five are both uh for curb cuts 315 00:26:04,000 --> 00:26:08,360 for those construction projects. 316 00:26:08,640 --> 00:26:11,640 » Second 317 00:26:13,600 --> 00:26:20,919 yes. Number five discussion action request 318 00:26:17,919 --> 00:26:20,919 cut 319 00:26:26,720 --> 00:26:33,039 » eight. Yes. >> Item number seven opd prepayment 320 00:26:31,279 --> 00:26:36,279 agreement as recommended by the board of public works. 321 00:26:36,640 --> 00:26:47,279 So, uh, the board of public works, um, is recommending, um, 322 00:26:42,799 --> 00:26:52,000 council approval of this. Um, this is part of the process that we're going 323 00:26:48,960 --> 00:27:00,799 through to get NITS. So, we have our own, uh, uh, ability to buy um, power 324 00:26:57,919 --> 00:27:08,080 um, outside of OPD. And um as we you know look at the NRG 325 00:27:05,520 --> 00:27:13,840 and the centronics and stuff as we move forward the um transmission line and 326 00:27:11,760 --> 00:27:19,520 stuff that's the way the board of public works figure uh thinks we should go with 327 00:27:16,799 --> 00:27:23,960 this. So we're going to ask the council to approve this thing. 328 00:27:42,240 --> 00:27:51,360 Yes. Um item number eight 329 00:27:48,960 --> 00:27:56,159 now discussion and action replacement of power plant windows by salt contracted 330 00:27:54,080 --> 00:28:00,240 to $64,7 recommended by the board of public. 331 00:27:58,080 --> 00:28:04,760 » Yeah. So the board of public works um is recommending this um 332 00:28:04,880 --> 00:28:12,240 contingent that it's going to be part of the budget. Um we have to budget for 333 00:28:09,440 --> 00:28:20,000 next fiscal year for this. I think it's a have to instead of a want. Um so we 334 00:28:17,840 --> 00:28:25,279 asked the council to approve it and then we'll go 335 00:28:23,120 --> 00:28:29,399 through the budget, get it in the budget for next year, fiscal year. 336 00:28:34,559 --> 00:28:37,559 Yes. 337 00:28:40,880 --> 00:28:53,080 Um then we have item number eight discussion and action accept engineering 338 00:28:48,720 --> 00:28:53,080 service change order. 339 00:28:53,919 --> 00:29:03,120 So um Trevor negotiated with seal 340 00:29:00,799 --> 00:29:08,080 on they had some come up. These are the relays at the power plant. Um so they 341 00:29:05,760 --> 00:29:12,240 come up and they build us for that day. They're looking at PDM. I think is a 342 00:29:10,240 --> 00:29:17,840 couple weeks they're going to be here. Um so it's a benefit for them that they 343 00:29:14,559 --> 00:29:25,120 could work uh Monday through Sunday. Their 344 00:29:19,440 --> 00:29:30,240 Saturday um Sunday PDM is quite high. So when Trevor negotiated 345 00:29:27,679 --> 00:29:34,960 um that their mobile they would eat half their mobile, we'd pay half of that and 346 00:29:32,399 --> 00:29:42,000 then he got the PDM down on the weekends to be the same as a weekday. So um this 347 00:29:40,000 --> 00:29:46,559 is the change order for those discussions. 348 00:29:43,600 --> 00:29:52,640 Um anybody have any questions? 349 00:29:50,000 --> 00:29:57,360 Can you repeat because it shows the weekday is 2950 a day but Saturday is 350 00:29:55,440 --> 00:30:00,880 4425 and Sunday. 351 00:29:59,120 --> 00:30:06,960 Did you just say that the daily rates got equalized? Is it not? That's my 352 00:30:03,840 --> 00:30:12,159 understanding. It's just not reflected. sheet. 353 00:30:08,880 --> 00:30:16,120 I see I see that now. Okay, that was that was part of his 354 00:30:20,000 --> 00:30:23,840 long not approving what we have in our hand. 355 00:30:22,080 --> 00:30:29,840 » Yep. I will double check with him that the is supposed to be the same weekday 356 00:30:26,960 --> 00:30:36,720 as weekend. So they don't have to go back to St. Louis and then remobilize 357 00:30:32,559 --> 00:30:40,159 here. So that that was the negotiation piece. 358 00:30:37,840 --> 00:30:45,360 » I will double check that and if you want to make a motion or someone wants to 359 00:30:41,679 --> 00:30:52,679 make a motion contingent on that or that we sign it once we get that figured out. 360 00:30:48,880 --> 00:30:52,679 I would make a motion. 361 00:31:00,559 --> 00:31:07,039 Well, it does have a date response required. Are we going to get to it? 362 00:31:05,120 --> 00:31:12,399 » Says that they wanted to have this done by the 15th. 363 00:31:09,600 --> 00:31:17,440 » Meet again by then. >> They uh mobile they're going to do it 364 00:31:14,880 --> 00:31:23,679 Monday the start the 14th and it's a twoe process. But I will double check on 365 00:31:20,080 --> 00:31:27,840 that and we won't sign it unless it is what I explained to the council. That's 366 00:31:25,520 --> 00:31:27,840 what 367 00:31:35,440 --> 00:31:39,480 others. But same as 368 00:31:42,799 --> 00:31:47,159 a motion in a second. >> I'll second. 369 00:31:49,360 --> 00:31:59,399 » Yes. Number nine, discussion and action agreement as recommended by public 370 00:31:56,399 --> 00:31:59,399 works. 371 00:32:00,320 --> 00:32:08,399 » So um we're still negotiating that contract 372 00:32:05,200 --> 00:32:14,799 um with Tanasa and I'd like to go into exact session so I can explain it to the 373 00:32:10,559 --> 00:32:20,240 council. It is um time sensitive. So I'd like to go explain it and then we can 374 00:32:17,120 --> 00:32:25,799 come out and you guys can make a motion or whatever you guys want to do. 375 00:32:28,960 --> 00:32:35,120 » Can we take public comment right now? >> Okay. 376 00:32:32,080 --> 00:32:40,720 » Yeah. Special fall edge just wanted to address the council. Tanasa has been in 377 00:32:37,840 --> 00:32:44,320 the news for data centers. did this about four to six months ago when we 378 00:32:43,039 --> 00:32:47,600 started talking about an NDA with Tanaska. We just want to make sure that 379 00:32:46,080 --> 00:32:51,519 everybody's clear. This has absolutely nothing to do with data centers. This is 380 00:32:49,519 --> 00:32:55,519 a totally different company than the Tanasa that's in the news for data 381 00:32:53,279 --> 00:33:00,960 centers, right? Get auction agreements. Tanasa, I think it's Tanaska Power 382 00:32:57,919 --> 00:33:04,480 Services is a division of Tanaska because we're trying to go NITS be 383 00:33:02,880 --> 00:33:08,720 network integrated. We're being dropped by mean Municipal Energy Agency of 384 00:33:06,960 --> 00:33:12,720 Nebraska. Therefore, we have to find a replacement, put out bids, right? Three 385 00:33:10,960 --> 00:33:17,360 people bid on it. One of them's Pasca. They appear to be the winner. Um, we 386 00:33:14,799 --> 00:33:21,600 need a willing agent by May 1st. I just wanted to make it very clear that this 387 00:33:18,960 --> 00:33:24,799 has nothing to do with data centers and that we're we're trying to find a 388 00:33:23,039 --> 00:33:31,039 market participant to help us wheel the energy, right? um in reviewing the um 389 00:33:29,519 --> 00:33:35,840 the contract that was in the board of public works. We've got an we got an 390 00:33:33,679 --> 00:33:39,120 all-star attorney that used to work at Southwest Powerpool that is helping us 391 00:33:37,279 --> 00:33:43,039 with this. She has full city's best interest in mind. They did share this 392 00:33:41,039 --> 00:33:48,640 with some of our investors and I just want you guys to be aware of uh some 393 00:33:45,600 --> 00:33:53,840 minor feedback that they have. Um, one of them is 394 00:33:50,880 --> 00:34:00,480 we want you consider no exclusivity for new 395 00:33:56,720 --> 00:34:03,840 generation for future new generation. Um, 396 00:34:02,080 --> 00:34:07,679 excluding new generation from this contract. There's a there's a section in 397 00:34:05,760 --> 00:34:12,720 there that that talks about this section 2 subo 398 00:34:09,599 --> 00:34:17,280 um that exclusivity um could prevent potential investment in 399 00:34:15,919 --> 00:34:21,520 fall city. some of the projects we're working on. Um the investors they want 400 00:34:19,839 --> 00:34:27,040 to derisk um and you know removing exclusivity 401 00:34:24,560 --> 00:34:33,760 gives us flexibility if someone wanted to do generation in fall city. Okay. Um 402 00:34:31,520 --> 00:34:38,480 a partnership with the municipality of fall city unlocks the pathway to 403 00:34:36,480 --> 00:34:43,359 funding. There's been some good activity the last couple weeks. Um, and I just 404 00:34:41,760 --> 00:34:48,079 wanted to just kind of put that out there that limiting exclusivity, someone 405 00:34:45,679 --> 00:34:52,480 wants to build generation in both city, um, you know, that's perhaps our best 406 00:34:50,240 --> 00:34:55,520 pathway forward to get the investments for some of these big projects we're 407 00:34:53,679 --> 00:34:57,839 working on. >> Thank you. 408 00:34:58,720 --> 00:35:03,320 Any other comments before we get a second? 409 00:35:10,160 --> 00:35:18,359 » Yes, >> you're going to go into executive 410 00:35:13,680 --> 00:35:18,359 session to discuss contract.