* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. ONE. [00:00:01] WELCOME EVERYBODY TO THE PRESENTATION [Presentations and Special Recognitions] PORTION OF OUR MEETING AT EAST BATON ROUGE PARISH METROPOLITAN COUNCIL THIS JUNE 24TH, 2026. WE'RE GONNA BEGIN WITH COUNCILMAN ANTHONY KINNEY. COUNCILMAN KINNEY. THANK YOU MAYOR PRO. TEMP COUNCIL MEMBERS TODAY I HAVE SOME VERY SPECIAL GUESTS, UH, FOR DISTRICT TWO AND THE JEWEL J NEWMAN COMMUNITY CENTER. UM, I HAVE THE SUMMER 2026 CAMPERS FOR THE CARL SLAUGHTER SUMMER CAMP HERE TODAY. CAMPERS GIVE YOURSELVES A ROUND OF APPLAUSE FOR BEING HERE TODAY. COUNCIL MEMBER, THIS HAS BEEN A LONGSTANDING CAMP, UH, CAMP IN MY COMMUNITY CENTER FOR THE PAST, UH, COUPLE DECADES. AND SO DURING MY TIME IN THE OFFICE THUS FAR, WE BROUGHT THE CAMP BACK. UH, WE HAVE OVER 40 CAMPERS THROUGHOUT MULTIPLE SCHOOLS IN THE BATON ROUGE AREA. UM, WE HAVE KIDS FROM AGES FROM FIVE TO 12 YEARS OLD HERE TODAY. AND COUNCIL MEMBERS, THESE, UM, KIDS ARE VERY AMAZING KIDS. THEY'VE BEEN HAVING SWIMMING LESSONS, FIELD TRIPS, UM, THEIR PROGRAMS, EVERYTHING YOU CAN THINK ABOUT. SO THEY'RE HAVING A FUN, AMAZING SUMMERTIME THUS FAR. AND SO TODAY WE JUST WANNA RECOGNIZE THEM. UM, SAY HELLO TO YOU ALL. MAYOR EDWARDS AND DENNIS DID AMAZING PRESENTATION, UM, BEFORE RECOGNITION TODAY AS WELL. SO, UM, BUT WITH THESE CAMPERS WE ALSO HAVE SOME DEDICATED STAFF MEMBERS THAT WORK WITH THESE CAMPERS ON A DAILY BASIS. SO, UM, FORTUNATELY I DON'T HAVE TO WORK WITH THEM ON A DAILY BASIS 'CAUSE I KNOW I'LL BE STRESSED OUT, UH, WITH OVER 40 ADDITIONAL KIDS. BUT I HAVE AMAZING STAFF, UM, THAT SUPPORT THEM. SO AT THIS TIME, I WANNA BRING UP MS. ASHLEY MONTGOMERY, THE CAMP DIRECTOR. LET'S GIVE MS. ASHLEY A ROUND OF APPLAUSE. ALSO, AS MS. ASHLEY IS COMING UP, I WOULD LIKE TO ASK ALL THE CAMP DIRECTOR AND, AND COUNSELORS TO STAND AS WELL, ALL THE CAMP COUNSELORS AND ALSO OUR MA WE STUDENTS ARE CAMP COUNSELORS AS WELL. ALL OF OUR MAI STUDENTS INTERN, PLEASE STAND UP BEFORE, LET'S GIVE 'EM A ROUND OF APPLAUSE TO OUR INTERNS. HELLO, MY NAME IS ASHLEY MONTGOMERY AND IT IS AN HONOR TO WORK FOR COUNCILMEN, UH, THIS SUMMER. I REALLY THANK YOU FOR THIS OPPORTUNITY, UM, TO WORK WITH THESE WONDERFUL CHILDREN BEHIND ME AND I THANK, UH, MY WONDERFUL STAFF FOR BEING HERE. UM, IT HAS TRULY BEEN AN HONOR TO, UH, WORK AT JEWEL NEWMAN, UH, THIS SUMMER. UM, GETTING TO KNOW, UH, EACH OF THE CHILDREN, I'VE ACTUALLY LEARNED ALL OF THEIR NAMES. UM, IT IS BEEN TRULY A JOY, UH, GETTING TO KNOW THESE KIDS AND, UH, SEEING THE JOY ON THEIR FACES EVERY DAY, UH, AT CAMP. UM, AND I'M LOOKING FORWARD TO ENDING CAMP WITH THESE CHILDREN. AND AGAIN, I THANK COUNCILMAN FOR THIS OPPORTUNITY. ALRIGHT, THANK YOU MS. MONTGOMERY. BEFORE WE TAKE A GROUP PICTURE, UM, COUNCIL MEMBERS, UM, ALONG WITH THE JEWEL NEWMAN COMMUNITY CENTER SUMMER CAMP, UH, WE ARE ALSO HOUSED IN ANOTHER AMAZING CAMP, UH, CALLED THE HANKS SUMMER CAMP. THAT'S THE, IN THE BATON ROUGE AREA. UM, IT IS LED BY SOME VERY DEDICATED INDIVIDUALS WHO ARE HELPING KIDS, UH, WHO NOT ONLY AT RISK IN OUR COMMUNITY, BUT OF ALL YOUTH IN OUR COMMUNITY AS WELL. IT'S CALLED A HANK SUMMER CAMP. AND TODAY, UM, I HAVE ONE OF THE LEADERSHIP FROM THE HANK SUMMER CAMP, MS. JUDE AUGUST. MS. JUDE, PLEASE COME UP THIS TIME. GOOD AFTERNOON. JUDE DOG IS PRESIDENT OF HELPING AT RISK NONCOMPLIANT KIDS, AND WE HAVE OUR SUMMER CAMP HOSTED AT THE GEORGIA NEWMAN COMMUNITY CENTER. OUR SUMMER CAMP IS CALLED HANK LEADS AND IT'S JUST IMPORTANT THAT WE PROVIDE A SAFE SPACE FOR OUR YOUNG ADULTS TO LEARN ABOUT LEADERSHIP, ACCOUNTABILITY AND COMMUNITY ENGAGEMENT. AND WE ARE SO HONORED THAT YOU TOOK THE TIME TO HONOR US AND THANK YOU SO MUCH FOR HAVING US AT GEORGIA J MORGAN. THANK YOU EVERYBODY. ROUND APPLAUSE. ALL RIGHT. SO, UM, TO THE HANK LEAD SUMMER CAMP, WE DO HAVE A CERTIFICATE OF RECOGNITION AND ALSO FOR ALL OUR CAMP DIRECTORS. UM, SO AT THIS TIME WE JUST WANNA DO A GROUP PHOTO WITH ALL OF OUR CAMPERS. SO, UM, MS. AUGUST AND MS. MONTGOMERY, IF YOU WANT TO, UM, BRING THE KIDS UP TO THE FRONT AND WE'LL TAKE A GROUP PHOTO AT THIS TIME. SO CAMPERS PLEASE STAND. YES. YEAH. SO ALL THE CAMPUS COME ON. COME, COME UP TO THE FRONT. COME UP TO THE FRONT CAMPUS, COME ON TO THE FRONT WITH MS. JUDE AND MS. UM, ASHLEY, IF YOU ARE TOWARDS THE SIDE. ALL RIGHT. EVERYBODY TAKE THREE STEPS BACK. THREE STEPS BACK. EVERYBODY COUNT. 1, 2, 3. THERE YOU GO. THERE YOU GO. [00:05:04] BEHIND OR THIS SEPARATE PICTURE? YEAH. ALL COMING TOGETHER? YEAH. ALL TOGETHER. YEP. ALL RIGHT GUYS. YOU HEAR ME CLAP ONCE. TESTING. GOOD JOB. WE GET THREE WEEKS AFTER THE OF JUNE. THAT'S A LEAVE THIS WAY. SHOW ALL, ALL THE WAY THROUGH THE THE DOOR. NEXT WE'RE GONNA HAVE COUNCILMAN MO WITH THE REMAINDER OF THE PRESENTATIONS. GOOD AFTERNOON COUNCIL MEMBER. THANK Y'ALL VERY MUCH FOR, UH, ALLOWING ME HERE TO RECOGNIZE A FEW PEOPLE. UM, AS WE ALL KNOW, UH, PRIDE THIS MONTH, JUNE IS PRIDE MONTH. AND YOU KNOW, WHEN EVERYTHING THAT GOES ON AND STUFF, UM, YOU KNOW, YOU THINK OF PRIDE MONTHS AS DIFFERENT THINGS, BUT BELIEVE IT OR NOT, WE ACTUALLY DO HAVE MOMENTS AND CLERGY AND AND OTHER MEMBERS THAT, THAT HELP US AND, AND GUIDE US AND HAVE OUR FAITH AND, AND MOVE FORWARD. BUT I'D LIKE TO RECOGNIZE, UM, SOME DEAR FRIENDS OF MINE, UM, THAT HAVE BEEN THERE, UH, HAVE HELPED SUPPORTED THE COMMUNITY AND, AND DONE LOTS OF GREAT WORK. FIRST I WANNA START OFF WITH ST. MARGARET'S EPISCOPAL CHURCH, UH, SO I CAN GET A REC REPRESENTATIVE IN RECOGNITION OF ST. MARGARET'S EPISCOPAL CHURCH FOR ITS [00:10:01] UNWAVERING COMMITMENT TO FAITH, SERVICE, INCLUSION, AND COMMUNITY ENGAGEMENT, ST. MARGARET'S STRIVES TO WELCOME ALL PEOPLE AS GOD CREATED THEM AND FOSTER AN INCLUSIVE COMMUNITY. WHEREAS ALL PERSONS ARE EMBRACED BY THEIR FAITH, FAITH JOURNEY REGARDLESS OF AGE, RACE, ETHNICITY, CULTURE, GENDER, GENDER IDENTITY, SEXUAL ORIENTATION, PHYSICAL OR MENTAL ABILITY OR ECONOMIC STATUS. GROUNDED IN THE APOSTLES TEACHING AND FELLOWSHIP, THE BREAKING OF BREAD AND PRAYER, ST. MARGARET'S FAITHFULLY LIVES OUT. CHRIST CALL TO LOVE AND SERVE OTHERS THROUGH ITS OUTREACH, MINISTRY'S HOSPITALITY AND GENEROUS SHARING OF TYING TALENT AND TREASURE. THE PARISH EXTENDS COMPASSION AND SUPPORT TO INDIVIDUALS, FAMILIES, AND ORGANIZATIONS THROUGHOUT THE GREATER BATON ROUGE COMMUNITY. THE CITY OF BATON ROUGE AND PARISH OF EAST BATON ROUGE PARISH, HEREBY COMMENDS ST. MARGARET EPISCOPAL CHURCH FOR ITS DEDICATION TO PROMOTING JUSTICE, PEACE, HUMAN DIGNITY, AND SERVICE TO OTHERS, AND EXTEND SINCERE APPRECI APPRECIATION FOR ITS POSITIVE AND LASTING IMPACT TO OUR COMMUNITY. THANK YOU TO ST. MARGARET'S FOR ALL THAT YOU DO. THANK YOU. THANK YOU. THANK YOU. HOLD UP JUST A SECOND. WE WILL CALL, CALL SEVERAL PEOPLE UP. AT THIS TIME, I'D LIKE TO RECOGNIZE THE REVEREND DEACON LESTER, MARTIN MUTT JR. WHEREAS THE REVEREND DEACON LESTER MARTIN MUTT JR. HAS DEDICATED HIS LIFE TO FAITH SERVICE AND THE STRENGTHENING OF OUR COMMUNITY. AND WHEREAS HE WAS ORDAINED TO THE SECOND ORDER OF DEACONS ON JUNE 10TH, 2024, FAITHFULLY SERVING AT ST. MARGARET'S EPISCOPAL CHURCH. AND WHEREAS DEACON LET DEACON LESS EXEMPLIFIES CHRIST'S CALL TO SERVANT LEADERSHIP THROUGH HIS COMPASSION, GENEROSITY, AND JOYFUL SPIRIT, INSPIRING ALL WHO KNOW HIM. AND WHEREAS A LONGTIME RESIDENT OF BATON ROUGE, HE HAS ENRICHED OUR COMMUNITY THROUGH HIS MINISTRY, VOLUNTEERISM AND SUPPORT OF THE LOCAL L-G-B-T-Q-I-A PLUS ORGANIZATIONS AND FAMILIES. NOW, THEREFORE, THE CITY OF BATON ROUGE AND PARISH OF EAST BATON ROUGE DO HEREBY RECOGNIZE AND HONOR THE REVEREND DEACON LESTER, MARTIN MUTT JR. FOR HIS FAITHFUL MINISTRY, DEDICATED SERVICE AND OUTSTANDING CONTRIBUTIONS. LESTER, THANK YOU SO MUCH FOR EVERYTHING THAT YOU'VE DONE. I KNOW YOU'VE BEEN A GREAT PARTNER OF, UM, ALL THE COMMUNITIES AROUND HERE, AND LIKE BOTH OF Y'ALL THROUGH YOUR CHURCH MINISTRY AND EVERYTHING, HAVE SUPPORTED EVERYTHING THAT, THAT WE HAVE DONE AND, AND ACCOMPLISHED. SO THANK YOU VERY MUCH. NOW ONE THAT WE'LL BE DOING OUR PRAYER FOR THE OPENING OF THE COUNCIL MEETING, THE REVEREND TOMMY DILLON. WHEREAS TOMMY DILLON FOR FATHER TOMMY DILLON, A BATON ROUGE NATIVE HAS DEDICATED HIS LIFE TO FAITH, SERVICE AND PURSUIT OF JUSTICE AND INCLUSION FOR ALL PEOPLE. AND WHEREAS HE'S EARNED HIS DEGREE FROM LOUISIANA STATE UNIVERSITY AND YALE UNIVERSITY AND WAS ORDAINED AS A DEACON AND PRIEST AT ST. LUKE'S EPISCOPAL CHURCH BEING BEFORE BEING CALLED TO SERVE AS RECTOR OF ST. MARGARET'S EPISCOPAL CHURCH IN 2016. AND WHEREAS THROUGHOUT MORE THAN 24 YEARS OF MINISTRY, FATHER TOMMY HAS PROVIDED COMPASSIONATE LEADERSHIP IN PASTORAL CARE, COMMUNITY OUTREACH, PRISON MINISTRY, MENTAL HEALTH AND HOMELESS SERVICES, DISASTER RECOVERY, RECOVERY AND ADVOCACY FOR RACIAL AND LGBTQ PLUS INCLUSION. AND WHEREAS HIS FAITHFUL SERVICE TO THE EPISCOPAL DIOCESE OF LOUISIANA, LOUISIANA AND THE GREATER BATON ROUGE COMMUNITY HAS STRENGTHENED COUNTLESS LIVES THROUGH HIS COMMITMENT TO HUMAN DIGNITY, RECONCILIATION, AND SERVICE TO THOSE MOST IN NEED. NOW THEREFORE BE IT RESOLVED. THE EAST BATON ROUGE PARISH METROPOLITAN COUNCIL HEREBY RECOGNIZES AND HONORS THE REVEREND TOMMY DILLON FOR HIS OUTSTANDING LEADERSHIP COMPASSIONATE MINISTRY AND ENDURING CONTRIBUTIONS TO THE CITIZENS OF BATON ROUGE EAST BATON ROUGE PARISH AND BEYOND. NOW, ONE THING, UH, TOMMY AS UH, WILL BE LEAVING US HERE SOON, AND HE WILL BE SERVING IN NEW YORK. I THINK THAT'S A PLACE THAT HE'S BEEN BEEN LOOKING TO GO TO AND WE WISH HIM THE BEST AS HE MOVES ON IN HIS JOURNEYS. SO TOMMY, THANK YOU FOR EVERYTHING THAT YOU HAVE DONE FOR OUR COMMUNITY, UH, IN THE PARISH. THANK YOU, YOUR HONOR. THANK YOU SO MUCH. THANK YOU. AND AARON, THANK YOU FOR YOUR WITNESS THAT YOU DO FOR THIS COMMUNITY HERE IN THE METRO COUNCIL IN THE CITY, BECAUSE YOU DO A LOT TO MAKE THIS WORLD BETTER. AND WHEN I LOOK AT WHAT YOU DO, WHEN I SEE YOU IN THE COMMUNITY, I SEE, SEE THE KINGDOM OF GOD. SO THANK YOU FOR WHAT YOU DO. THANK YOU. THANK YOU. I DON'T KNOW WHY YOU TURNED THAT ON ME, BUT, OKAY. THANK YOU . [00:15:01] ALSO FOR THIS, UH, THIS EVENINGS WE HAVE THE, UH, PLEDGE, WHICH WILL BE PRESENTED BY THE LOUISIANA WOMEN'S VETERANS UH, ASSOCIATION. BUT AT THIS TIME, I'D LIKE TO CALL UP MS. TINA. TOBIAS. SHE HERE YET? OKAY, SO SHE HAS NOT MADE IT YET. WE'LL, UH, PRESENT THIS TO HER. BUT I HAVE A CERTIFICATE OF RECOGNITION FOR MS. TINA AND THE LOUISIANA WOMEN'S VETERANS ASSOCIATION, WHICH WILL BE JOINING US, UH, FOR THE PLEDGE. THANK Y'ALL. THANK YOU, COUNCILMAN. THIS CONCLUDES THE PRESENTATION PORTION OF OUR MEETING. OUR REGULARLY SCHEDULED MEETING WILL BEGIN AT FOUR O'CLOCK. THANK YOU. ALRIGHT. OH, HELLO EVERYBODY. WELCOME TO THE COUNCIL [CALL TO ORDER] CHAMBER OF EAST BAT RIDGE PARISH. GOOD TO HAVE A ALL OF YOU VIEWING OUR MEETING TODAY. I WANNA REMIND YOU ALSO THAT WE ARE ARCHIVING EVERY ONE OF OUR MEETINGS AND YOU CAN ACCESS THAT@BLA.GOV. GOOD TO HAVE ALL OF YOU TUNED IN. AND AT THIS TIME HERE IS THE MAYOR, PRESIDENT PROTO OF EAST BENDERS. PARACHUTE REPRESENTS DISTRICT NUMBER ONE UP IN THE NORTHWEST PART OF THE PARISH. I SHOULDN'T SAY THAT 'CAUSE IT'S THE WHOLE NORTH PART OF THE PARISH. COUNCILMAN BRANDON NOEL. COUNCILMAN. THANK YOU DENNIS. WE CALL THE MEETING IN ORDER. ASHLEY, DO WE HAVE A QUORUM? WE HAVE A QUORUM. COUNCILMAN MOOCH, IF YOU COULD INTRODUCE OUR INVOCATION AND PLEDGE VOCATION AND PLEDGE. LET US PRAY. GRACIOUS AND LOVING GOD, WE THANK YOU FOR EAST BATON ROUGE PARISH FOR ALL WHO CALL THIS COMMUNITY HOME AND FOR ALL WHO SEEK ITS GOOD. BLESS THE MEMBERS IN THIS CHAMBER FOR THE COUNCIL, FOR THE MAYOR, PRESIDENT, THE STAFF AND ALL WHO SERVE THIS CITY AND PARISH. GIVE THEM WISDOM. GIVE THEM PATIENCE. GIVE THEM COURAGE AND HUMILITY AS THEY LISTEN. DELIBERATE AND LEAD. REMIND US THAT PUBLIC SERVICE IS A SACRED TRUST GUIDE. THIS MEETING TOWARDS THE COMMON GOOD, THE DIGNITY OF EVERY PERSON AND THE BUILDING OF A COMMUNITY WHERE ALL PEOPLE KNOW THAT THEY BELONG TO BLESS BATON ROUGE AND ALL OF OUR NEIGHBORHOODS, ALL OF OUR DIFFERENCES, ALL OF OUR STRUGGLES AND ALL OF OUR BEAUTY MAKE US PEOPLE WHO SEE ONE ANOTHER, CARE FOR ONE ANOTHER AND WORK TOWARDS THE FLOURISHING OF ALL. WE ASK THIS IN YOUR HOLY NAME. AMEN. AMEN. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. UH, IF I COULD HAVE MS. UH, TINA STAY UP HERE AND JOIN ME, I WOULD LIKE TO GIVE THIS, UH, CERTIFICATE OF RECOGNITION TO MS. TINA TOBIAS FROM THE METROPOLITAN COUNCIL. THE CITY OF BATON ROUGE AND THE PARISH OF EAST BATON ROUGE PROUDLY RECOGNIZES MS. TINA FOR HER SERVICE AND DEDICATION TO HONORING AMERICAN'S WOMEN'S VETERANS. AS REPRESENTATIVE OF THE LOUISIANA WOMEN'S VETERANS, MS. DEVAS LEADS THE PLEDGE OF ALLEGIANCE IN RECOGNITION OF WOMEN'S VETERANS DAY OBSERVED ANNUALLY ON JUNE 12TH. THIS DAY COMMEMORATES THE ANNIVERSARY OF THE WOMEN'S ARMED SERVICE INTEGRATION ACT OF 1948, SIGNED BY PRESIDENT HARRY S TRUMAN, WHICH GRANTED WOMEN THE RIGHTS TO SERVE AS PERMANENT MEMBERS OF THE UNITED STATES ARMED FORCES. THROUGH HER COMMITMENT TO RECOGNIZING THE SACRIFICES AND ACHIEVEMENTS OF WOMEN WHO HAVE SERVED OUR NATION, MS. TOBIAS HELPS PRESERVE THEIR LEGACY AND INSPIRE FUTURE GENERATIONS OF SERVICE MEMBERS. THE CITY OF BATON ROUGE AND PARISH OF EAST BATON ROUGE EXTENDED SINCERE APPRECIATION TO MS. TINA TOBIAS FOR HER LEADERSHIP, HER PATRIOTISM AND DEDICATION TO HONORING WOMEN'S VETERANS. GIVEN THIS DAY, JUNE 24TH, 2026, WITH ULTIMATE AND SINCERE GRATITUDE FROM THE EAST BATON ROUGE METROPOLITAN COUNCIL IN THE CITY OF BATON ROUGE AND EAST BATON ROUGE PARISH, THANK YOU SO MUCH. WE WOULD ALSO, IF MS. TINA WOULD JOIN US AND MS. REVEREND ANDERSON WOULD PLEASE COME UP AND JOIN US. ONE OF OUR 12 13 14 15 COUNCIL MEMBERS HERE WITH US. [00:20:01] UM, AT THIS TIME WE'D LIKE TO RECOGNIZE THE METROPOLITAN COUNCIL OF THE CITY OF BATON ROUGE AND PARISH OF EAST BATON ROUGE PROUDLY RECOGNIZES AND COMMENDS THE LOUISIANA WOMEN'S VETERANS FOR THEIR OUTSTANDING SERVICE, DEDICATION, AND UNWAVERING COMMITMENT TO HONORING WOMEN WHO HAVE SERVED IN THE UNITED STATES ARMED FORCES. WHEREAS IN 2008, ANNA SANDERS ESTABLISHED WOMEN'S VETERANS OF LOUISIANA WITH A SMALL GROUP OF DEDICATED WOMEN WHOSE MISSION WAS TO HONOR WOMEN'S VETERANS AT THEIR FINAL FAREWELL CEREMONIES THROUGHOUT THE STATE OF LOUISIANA. AND WHEREAS IN 2015, MS. SANDERS FOUNDED LOUISIANA WOMEN'S VETERANS AND CONTINUES TO SERVE AS ITS PRESIDENT, LEADING AN ORGANIZATION THAT HAS PROVIDED MILITARY HONORS AND TRIBUTE AT MORE THAN 700 FUNERALS FOR WOMEN VETERANS ACROSS LOUISIANA AND BEYOND. AND WHEREAS LOUISIANA WOMEN'S VETERANS HAS DEMONSTRATED EXCEPTIONAL DEDICATION TO PRESERVING THE DIGNITY, SACRIFICE, AND LEGACY OF WOMEN VETERANS ACROSS LOUISIANA AND THROUGHOUT OUR NATION IN MILITARY SERVICE. AND WHEREAS LOUISIANA WOMEN VETERANS EXTENDS ITS SPIRIT OF SERVICE THROUGH COMMUNITY OUTREACH, CHARITABLE FUNDRAISING EFFORTS AND PARTICIPATION IN PROGRAMS SUCH AS LSU, SOFTBALL, MILITARY WARRIORS, RECOGNITION, HONORING WOMEN'S WHO HAVE SERVED OR ARE CURRENTLY SERVING IN THE ARMED FORCES. NOW THEREFORE BE IT KNOWN THAT THE CITY OF BATON ROUGE AND PARISH OF EAST BATON ROUGE HEREBY RECOGNIZES AND HONOR THE LOUISIANA WOMEN'S VETERANS FOR THEIR REMARKABLE CON CONTRIBUTIONS TO VETERANS, THEIR FAMILIES, AND OUR COMMUNITY, AND EXTEND SINCERE APPRECIATION FOR THEIR CONTINUED DEDICATION TO SERVICE PATRIOTISM AND REMEMBRANCE TO THE LOUISIANA WOMEN'S VETERANS ORGANIZATION. AND Y'ALL, TWO LOVELY LADIES SITTING UP HERE. I HOPE YOU PRESENT THIS TO THEM FROM US. THANK Y'ALL SO MUCH FOR YOUR SERVICE, YOUR DEDICATION, AND EVERYTHING THAT YOU DO LOCALLY, STATEWIDE, AND NATIONALLY. WOULD YOU LIKE STAND HERE AT LEAST? UH, THANK YOU METRO COUNSEL. THANK YOU. UH, COUNCILMAN MOOCH. UM, ANNA IS ACTUALLY IN HAWAII HELPING VICTIMS BECAUSE THAT IS WHO AND WHAT SHE DOES. BUT, UH, WE ARE SO PROUD OF THE WORK OF THE OVER 250,000 WOMEN VETERANS WHO HAVE SERVED IN LOUISIANA. AND I WOULD LIKE TO FORMALLY INVITE EACH MEMBER OF THE METRO COUNCIL ON JULY 2ND. THE VETERANS TREATMENT COURT OF THE 19TH JDC WILL, IN FACT HOST ITS SECOND ANNUAL, UH, GRADUATION. AND IT IS AN HONOR BECAUSE WE DO NOT LEAVE ANYBODY BEHIND. SO AGAIN, WE ASK YOU TO RECOGNIZE AND REACH OUT TO THE WOMEN, VETERANS AND ALL VETERANS IN YOUR RESPECTIVE DISTRICTS. REMEMBERING THAT EVERY WOMAN THAT HAS EVER SERVED, STEPPED UP WAS NOT REQUIRED TO, BUT STEPPED UP AND MET THE MOMENT. THANK YOU. THANK YOU. THANK YOU. REAL QUICK, OH, COUNCIL MEMBERS, IF Y'ALL COULD JOIN US REAL QUICK. ALRIGHT. THANKS EVERYBODY. [00:25:20] MAYOR PRO TIM. I WOULD LIKE A, UM, TO DO A POINT OF, UH, PERSONAL PRIVILEGE TO A MOMENT OF SILENCE FOR MR FOR THE YOUNG MAN, THE DARIUS, UH, MANYWEATHER THAT WE REMEMBER HIM, UM, HIS LIFE WAS TAKEN FROM HIM AND HIS BODY HAS NOT BEEN FOUND YET. SO WE WANT TO REMEMBER HIS MOM AND HIS FAMILY IN THIS MOMENT OF SILENCE, PLEASE. THANK YOU. THANK YOU, COUNCILWOMAN. OKAY. [ADOPTION AND APPROVAL OF MINUTES] ITEM ONE, ADOPTION APPROVAL OF THE MINUTES OF THE METROPOLITAN COUNCIL MEETING JUNE 10TH, 2026, AND THE METROPOLITAN COUNCIL'S ZONING MEETING OF JUNE 17TH, 2026 BY COUNCIL, ADMINISTRATIVE TREASURER. WE HAVE A MOTION. MOTION BY COUNCILWOMAN COLEMAN, SECOND BY COUNCILMAN DUNN, JR. ANY OPPOSED? MOTION CARRIES. ASHLEY, COULD [INTRODUCTIONS] YOU PLEASE READ THE INTRODUCTIONS? SECTION 2.12 INTRODUCTIONS NUMBER TWO, AUTHORIZING THE MAYOR PRESIDENT TO ENTER INTO A LEASE AGREEMENT WITH MOTOROLA SOLUTIONS FOR THE PURPOSE OF PROVIDING NEW PORTABLE RADIOS FOR THE POLICE AND FIRE DEPARTMENTS. THE LEASE INCLUDES THE EQUIPMENT SOFTWARE, UPGRADES OF SAME EXTENDED WARRANTIES AND OTHER SUPPORT. TOTAL COST FOR 10 YEARS, $9,206,273 AND 60 CENTS PAID YEARLY STARTING JULY 1ST, 2027 AT $1 MILLION UNTIL JULY 1ST, 2032 AND THEN $801,568 AND 40 CENTS PER YEAR FOR JULY 1ST, 2033 TO JULY 1ST, 2036 BY THE FIRE CHIEF AND POLICE CHIEF CONDEMNATION INTRODUCTIONS NUMBER THREE, LUCILLE GREEN ARMSTRONG 2 7 5 0 70TH AVENUE COUNCIL, DISTRICT TWO KENNY, NUMBER FOUR, JOHNNY JONES, ET AL. 4 0 6 9 TUSCAN TMA STREET COUNCIL, DISTRICT 10 COLEMAN NUMBER FIVE, TASHA COVINGTON AND JAMIE COVINGTON. 1 1 0 5 6 PROGRESS STREET COUNCIL, DISTRICT 10 COLEMAN. NUMBER SIX, ANGEL BERGON 2 1 5 1 DALE AVENUE COUNCIL DISTRICT 12 RACA NUMBER SEVEN, PETE CINO. 8 9 2 6, CORRELATE DRIVE COUNCIL, DISTRICT TWO, KENNY, NUMBER EIGHT, LENORA DRAKE, 3 0 2 1 LORRAINE STREET COUNCIL, DISTRICT FIVE HEARST. NUMBER NINE. DANIELLE GABRIEL BOWMAN, 3 0 3 BOND CREST AVENUE COUNCIL, DISTRICT TWO KENNY, NUMBER 10, SATTER. ANNETTE TATE. 3 8 5 2 BYRON STREET COUNCIL, DISTRICT FIVE HEARST. NUMBER 11, WILBERT JONES AND WAYNE DRAKE. 5 2 2 1 FORD STREET COUNCIL DISTRICT FIVE HEARST NUMBER 12, ALI FLEMING, ET AL. 7 5 4 30 NINTH NORTH 39TH STREET COUNCIL, DISTRICT SEVEN HARRIS, NUMBER 13, BENNETT GER ETAL 5 1 2 RA AVENUE COUNCIL, DISTRICT SEVEN HARRIS, NUMBER 14. DONNIE NORTHERN 4 3 7 0 EAST BROOKSTOWN DRIVE. COUNCIL, DISTRICT SEVEN HARRIS NUMBER 15 BCI PROPERTIES LLC 1, 2 1 5. EDDIE ROBINSON SENIOR DRIVE COUNCIL, DISTRICT 10 COLEMAN NUMBER 16, THE ESTATE OF JAMES A. PAYNE. 1 6 1 8 NORTH 48TH STREET COUNCIL DISTRICT SEVEN HARRIS ADJUDICATED PROPERTY INTRODUCTIONS NUMBER 17 LOT 15 SQUARE, UH, LOT 15 PLUS SQUARE TWO. SUBDIVISION RICHMOND PARK COUNCIL DISTRICT 10 COLEMAN NUMBER 17 LOT 10 SQUARE SIX SUBDIVISION SCOTT COUNCIL DISTRICT 10 COLEMAN NUMBER 19. UH, LOT SIX. LOT C SUBDIVISION SHERWOOD VILLAGE CONDOMINIUMS COUNCIL DISTRICT SIX DUNN JUNIOR NUMBER 20 LOT FOUR SQUARE 35 SUBDIVISION SCOTLAND COUNCIL DISTRICT TWO, KENNY NUMBER 21, LOT THREE. SUBDIVISION BALDRIDGE PLACE COUNCIL DISTRICT SEVEN HARRIS NUMBER 22 LOT THREE SQUARE F SUBDIVISION CRAWFORD EDITION COUNCIL, DISTRICT SEVEN HARRIS NUMBER 23 LOT 12 SUBDIVISION VICTORIA GARDENS COUNCIL DISTRICT SEVEN HARRIS NUMBER 24 SQUARE 30 SOUTH DOWNS COUNCIL 12. COUNCIL DISTRICT 12. RACA NUMBER 25 LOT 25 PLUS SQUARE 12 SUBDIVISION BANKS COUNCIL DISTRICT TWO, KENNY NUMBER 26 LOT EIGHT SQUARE FIVE SUBDIVISION SCOTLAND HEIGHTS COUNCIL DISTRICT TWO, KENNY NUMBER 27 LOT 54 SUBDIVISION DEER PARK COUNCIL DISTRICT ONE, KNOLL NUMBER 28 LOT 2 85 SUBDIVISION CRYSTAL PLACE COUNCIL DISTRICT FOUR, MOOCH NUMBER 29 LOT SEVEN SQUARE 28 SOUTH BATON ROUGE SUBDIVISION [00:30:01] COUNCIL, DISTRICT 10 COLEMAN NUMBER 30 LOT 76 SQUARE 12 SUBDIVISION SOUTH BATON ROUGE COUNCIL DISTRICT 10 COLEMAN. ALL ITEMS THAT REQUIRE READING HAVE BEEN READ. AND A MOTION BY COUNCILWOMAN COLEMAN. SECOND BY COUNCILMAN HUDSON. ANY OPPOSITION? MOTION CARRIES. ALL RIGHT, [CONDEMNATIONS] I SEE YOUR SEPARATE SHEET FOR CONDEMNATIONS. I'M GONNA READ 'EM AS PRESENTED FROM DPW WITH THEIR RECOMMENDATIONS, THEN I'LL, UH, GO OVER CHANGES AND THEN WE'LL HAVE A PUBLIC HEARING ON THE ITEMS. RECOMMENDATIONS ARE TO PROCEED WITH ITEM 74, 75, 76, 78, 79, 80, 81, 82, 83, 84, 85, 86, 87, 88, 90, 91, AND 92, 30 DAYS. ON ITEM 77 AND 89, I HAVE REQUESTED CHANGES OF 30 DAYS FOR ITEMS 80, 60 DAYS ON 90, 90 DAYS ON 74 AND 87. ANY OTHER RECOMMENDED CHANGES? YES, COUNCILMAN? DELETE ITEM 82. 82. DELETE. ALL RIGHT. ANY OTHER CHANGES? OKAY, ANYONE WISH TO SPEAK ON THESE ITEMS, PLEASE? TASHA MATEO? YES, PLEASE. UH, I WAS REQUESTING, UM, AN ADDITIONAL EXTENSION ON MY ITEM NUMBER 89. SO THE RECOMMENDATION ON THAT ONE IS 30 DAYS. SO WE'RE HAVING A PROBLEM. THE PERMIT PEOPLE WANTED US TO GET A STRUCTURAL ENGINEER. WE ARE HAVING A PROBLEM WITH GETTING COMMUNICATION WITH SOMEONE THAT CAN POSSIBLY HELP US WITH THAT. SO I DON'T KNOW HOW LONG THAT MAY TAKE. CONSTABLE MCCOMB, I'M GONNA RECOMMEND THAT YOU GET WITH MY LEGISLATIVE ASSISTANT AND DO YEAH. HAVE A CONVERSATION WITH HIM. OKAY? ALRIGHT. AND YOU GOTTA HAVE A PLAN. YES, MA'AM. ALRIGHT. OKAY. WE CAN KEEP IT ON A 30 DAY COUNCILWOMAN. OKAY. ANYONE ELSE WISHING TO SPEAK ON THESE ITEMS? SCENE NONE. WE'LL GO, COUNSEL. I'M GONNA READ 'EM BACK BEFORE MOTION. WE ARE TO PROCEED WITH ITEM 75, 76, 78, 79, 81, 83, 84, 85, 86, 88, 91, AND 92, 30 DAYS FOR ITEM 77 80 AND 89, 60 DAYS FOR ITEM 90, 90 DAYS FOR ITEM 74 AND 87 AND DELETE. ITEM 82. WE HAVE A MOTION. MOTION BY COUNCILWOMAN ROCKA, SECOND BY COUNCILWOMAN COLEMAN. IS THERE ANY OPPOSITION? MOTION CARRIES ANYTHING MAJOR UNDER ITEM 93. [93. 26-00617] AUTHORIZING THE MAYOR PRESIDENT TO EXECUTE A COOPERATIVE ENDEAVOR AGREEMENT BETWEEN THE CITY OF BATON ROUGE PARISH OF EAST BATON ROUGE AND THE BAYOU FOUND ECONOMIC DEVELOPMENT DISTRICT FOR THE PURPOSE OF PROMOTING ECONOMIC DEVELOPMENT IN THE BAYOU FOUND ECONOMIC DEVELOPMENT DISTRICT AND PROVIDING FOR RELATED MATTERS BY COUNCILWOMAN JEN ROCCA. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? CHRIS, WE HAVE KRISTEN. BILL. THERE IS A RECOMMENDATION TO DEFER THIS ITEM, I THINK FOR, UH, AUGUST 26TH. AUGUST 26TH. BUT ANYONE, ANYONE, UH, WISHING TO SPEAK ON THIS ITEM? THE, THE RECOMMENDATION IS TO BE DEFERRED, BUT WE'RE STILL GONNA HAVE A, WE HAVE TO HAVE A PUBLIC HEARING AND THEN WE WILL GO TO COUNCIL. SO IT THAT'S YOUR PLEASURE. I'D MAKE A MOTION TO DEFER. OH WAIT. NO ONE WISHING TO SPEAK. WE HAVE A LIST OF PEOPLE. I'M GONNA READ THROUGH THE NAMES. IF YOU DON'T WANNA SPEAK, IT'S FINE. BUT SINCE WE HAD Y'ALL TURNED IN, I HAVE KRISTEN BEAL, REBEL KAPLAN. CHARLIE CAPLINGER. STEVE LEGER. JIM BRADFORD, NONE. WISHING TO SPEAK. WE'LL GO TO COUNCIL CONSTABLE, AKA I'D LIKE TO MAKE A MOTION TO DEFER UNTIL THE AUGUST 26TH MEETING. THANK YOU. MOTION BY COUNCILWOMAN ROCKA. SECOND BY COUNCILWOMAN AMAROSA. IS THERE ANY OPPOSITION? MOTION CARRIES. ITEM BEEN DEFERRED. ITEM 94 [94. 26-00701] RESOLUTION. SETTING THE AMOUNT OF LOCAL HOSPITAL ASSESSMENT PAYMENTS FOR THE EAST BATON ROUGE PARISH LOCAL HEALTHCARE PROVIDER PARTICIPATION PROGRAM FOR FISCAL YEAR 2026. TO DIRECT HOW THE REVENUE DERIVED FROM LOCAL HOSPITAL ASSESSMENT PAYMENTS IS TO BE SPENT AND TO SET THE DUE DATE AND AMOUNT TO BE PAID IN COLLECTION FEES BY COUNCIL. ADMINISTRATIVE [00:35:01] TREASURER. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SEE NONE. GO TO COUNCIL. WE HAVE A MOTION. MOTION BY COUNCILWOMAN ROCKA. SECOND BY COUNCILMAN HUDSON. ANY OPPOSITION? MOTION CARRIES. NINE FIVE. AUTHORIZED [95. 26-00713] THE MAYOR, PRESIDENT ON BEHALF OF THE BATON ROUGE POLICE DEPARTMENT TO ACCEPT THE DONATION FROM LOUISIANA LAW ENFORCEMENT AND CRIMINAL JUSTICE FOUNDATION AND AMOUNT NOT TO EXCEED $20,000 BY THE POLICE CHIEF. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? ANY NOW GO TO COUNCIL. WE HAVE A MOTION. MOTION BY COUNCILWOMAN COLEMAN. SECOND BY COUNCILWOMAN AMAROSA. ANY, ANY OPPOSITION? MOTION CARRIES 96 [96. 26-00714] AUTHORIZING MAYOR, PRESIDENT ON BEHALF OF THE BATON ROUGE POLICE DEPARTMENT TO AMEND THE OPERATING SERVICES CONTRACT WITH SOUND THINKING SHOT SPOTTER FOR GUNSHOT DETECTION SERVICES AND DESIGNATED AREAS WITHIN THE CITY OF BATON ROUGE IN EAST BATON ROUGE PARISH. THE ESTIMATED COMPENSATION UNDER THE AGREEMENT WILL NOT EXCEED $307,255 BY THE POLICE CHIEF. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SEE NO. GO TO COUNCIL MOTION BY COUNCILWOMAN HARRIS. SECOND BY COUNCILWOMAN COLEMAN. IS THERE ANY OPPOSITION? MOTION CARRIES. NINE SEVEN [97. 26-00715 ] AUTHORIZING THE MAYOR, PRESIDENT ON BEHALF OF THE BATON ROUGE POLICE DEPARTMENT TO DONATE 30 SURPLUS PRO PROTECT SAFARI LAND BALLISTIC VEST TO THE FARADAY POLICE DEPARTMENT BY THE POLICE CHIEF. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SEEN, KNOWN? GO TO COUNCIL, HAVE A MOTION. MOTION BY COUNCILMAN GOD DAY. SECOND BY COUNCILWOMAN ROCKA. IS THERE ANY OPPOSITION? MOTION CARRIES. 98. [98. 26-00719] AUTHORIZING THE MAYOR, PRESIDENT ON BEHALF OF THE DIVISION OF HUMAN DEVELOPMENT AND SERVICES, RYAN WHITE PROGRAM TO ACCEPT FUNDING FROM THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES, HEALTH RESOURCES AND SERVICES ADMINISTRATION FOR THE RYAN WHITE HIV AIDS PROGRAM IN AN AMOUNT OF 1,450,000. FIRST ALLOCATION, 550002ND ALLOCATION, 1,450,000 FOR A TOTAL AWARD OF 2 MILLION BY HUMAN DEVELOPMENT AND SERVICES DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SEEN, KNOWN? GO TO COUNCIL MOTION BY COUNCILWOMAN HARRIS. SECOND BY COUNCILWOMAN ROCKA. ANY OPPOSITION? MOTION CARRIES. NINE NINE. [99. 26-00721] AUTHORIZING THE MAYOR PRESIDENT TO ACCEPT FUNDING FROM THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES, HEALTH RESOURCES AND SERVICES ADMINISTRATION ON BEHALF OF THE DIVISION OF HUMAN DEVELOPMENT AND SERVICES FOR THE RYAN WHITE HIV AIDS PROGRAM, WHICH INCLUDES PART A IN THE MINORITY AIDS INITIATIVE AND AN AMOUNT OF $3,242,143 FIRST ALLOCATION, 1243772ND ALLOCATION, $3,242,143 FOR A TOTAL FEDERAL AWARD OF $4,485,913 BY HUMAN DEVELOPMENT AND SERVICES DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? GO TO COUNCIL. WE HAVE A MOTION. MOTION BY COUNCILWOMAN COLEMAN. SECOND BY COUNCILWOMAN HARRIS. IS THERE ANY OPPOSITION? MOTION CARRIES ITEM [100. 26-00718] 100, AUTHORIZING THE MAYOR PRESIDENT TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF BATON ROUGE PARISH OF EAST BATON ROUGE ON BEHALF OF THE OFFICE OF COMMUNITY DEVELOPMENT AND CATHOLIC CHARITIES OF THE DIOCESE OF BATON ROUGE SANCTUARY OF LIFE IN AN AMOUNT NOT TO EXCEED $70,000 BY THE COMMUNITY DEVELOPMENT DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? TEAM? NO. GO TO COUNCIL. HAVE A MOTION. MOTION BY COUNCILWOMAN COLEMAN. SECOND BY COUNCILWOMAN HARRIS. IS THERE ANY OPPOSITION? MOTION CARRIES 1 0 1. [101. 26-00720] AUTHORIZING THE MAYOR PRESIDENT TO EXECUTE AN AGREEMENT BETWEEN CITY OF BATON ROUGE, PASTOR OF EAST BATON ROUGE. ON BEHALF OF THE OFFICE OF COMMUNITY DEVELOPMENT AND INFORMATICS IN, IN AMOUNT, I EXCEED $200,000 BY THE COMMUNITY DEVELOPMENT DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? GO TO COUNCIL. HAVE A MOTION BY COUNCILWOMAN ROCKA. SECOND BY COUNCILMAN HUDSON. IS THERE ANY OPPOSITION? MOTION CARRIES [102. 26-00722 ] 1 0 2 AUTHORIZING MAYOR, PRESIDENT ON BEHALF OF THE OFFICE OF COMMUNITY DEVELOPMENT TO EXECUTE AN AMENDMENT TO A CONTRACT WITH WORKFORCE GROUP LLC BETWEEN CITY OF BATON ROUGE, PASTURE OF EAST BATON ROUGE, INCREASING THE CONTRACT AMOUNT BY A HUNDRED THOUSAND DOLLARS FOR A NEW TOTAL NOT TO EXCEED $38,671,406 AND 53 CENTS BY COMMUNITY DEVELOPMENT DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? ANY? NONE. GO TO COUNCIL, MOVE A MOTION. MOTION BY COUNCILMAN DUNN, JR. SECOND BY COUNCILMAN GOEY. ANY OPPOSITION? MOTION CARRIES [103. 26-00726 ] 1 0 3 AUTHORIZING MAYOR, PRESIDENT, AND OR CHAIRMAN OF THE AIRPORT COMMISSION TO ENTER INTO AN AGREEMENT WITH GI BEND AND ASSOCIATES LLC, DOING BUSINESS AS GOLD RENTALS TO PROVIDE LUXURY CAR RENTAL SERVICES TO GENERAL AVIATION CUSTOMERS OF VELOCITY. BTR HOLDINGS LLC FOR A PERIOD OF THREE YEARS WITH TWO ONE YEAR OPTIONS TO RENEW BY THE AVIATION DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? TEAM NOW GO TO COUNCIL. WE HAVE A MOTION. MOTION BY COUNCILMAN DON JR. SECOND BY COUNCILMAN KENNY. IS [00:40:01] THERE ANY OPPOSITION? MOTION CARRIES [104. 26-00716 ] AND 1 0 4 AUTHORIZING MAYOR PRESIDENT TO EXECUTE SUPPLEMENTAL AGREEMENT NUMBER ONE TO THE CONTRACT WITH JAMES DELLE ARCHITECTS, LLC FOR ADDITIONAL DESIGN SERVICES IN CONNECTION WITH THEIR CONTRACT FOR DEPARTMENT OF MAINTENANCE MAINTENANCE LOT STORAGE BUILDINGS IN AN AMOUNT NOT TO EXCEED $9,902, WHICH WILL BRING THE GRAND TOTAL OF THE CURRENT CONTRACT. $58,332 BY BUILDING AND GROUNDS DIRECTOR, ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SEEN NONE. GO TO COUNSEL MOTION BY COUNCILMAN KENNEY. SECOND BY COUNCILWOMAN HARRIS. ANY OPPOSITION? MOTION CARRIES 1 0 5 [105. 26-00740 ] AUTHORIZING MAYOR PRESIDENT TO ENTER INTO A FIVE YEAR AGREEMENT WITH RTA FLEET 360 FOR CLOUD-BASED FLEET MANAGEMENT INFORMATION SYSTEM SERVICES IN AN AMOUNT NOT TO EXCEED $559,908 AND 76 CENTS OVER THE FIVE YEAR TERM BY DIRECTOR OF FLEET MANAGEMENT. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? GO TO COUNCIL MOTION BY COUNCILMAN HARRIS. SECOND BY COUNCILMAN KINNEY. ANY OPPOSITION? MOTION CARRIES PANEL 1 0 6 [106. 26-00741] AUTHORIZING MAYOR PRESIDENT TO EXECUTE AN AMENDMENT TO THE COOPERATIVE ENDEAVOR AGREEMENT WITH CAPITAL AREA TRANSIT SYSTEM FOR CLARIFICATION OF AGENCY RESPONSIBILITIES ASSOCIATED WITH THE MOVE BEYOND COMMUNITY ENHANCEMENT PROJECT. NICHOLSON PLANK NICHOLSON TO PLANK BUS RAPID TRANSIT BY THE TRANSPORTATION AND DRAINAGE DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SEE NONE. WILL GO TO COUNSEL. HAVE A MOTION. MOTION BY COUNCILMAN HARRIS. SECOND BY COUNCILMAN COLEMAN. IS THERE ANY OPPOSITION? MOTION CARRIES ITEM 1 0 7 [107. 26-00742 ] AUTHORIZING MAYOR PRESIDENT TO EXECUTE SUPPLEMENTAL AGREEMENT NUMBER TWO TO A CONTRACT FOR PROFESSIONAL ENGINEERING SERVICES WITH TBA SMITH, LLC PER ADDITIONAL TRAFFIC DATA COLLECTION AND SUE SERVICES ASSOCIATED WITH THE HIGHLAND ROAD AT PICO LANE ENHANCEMENT PROJECT IN AN AMOUNT NOT TO EXCEED $28,040 AND 51 CENTS. BRINGING THE TOTAL CONTRACT AMOUNT NOT TO EXCEED $851,069 AND 20 CENTS BY THE TRANSPORTATION AND DRAINAGE DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SAME NUMBER. GO TO COUNCIL. OH, COUNCILMAN GODDE. HEY FRED, I'M GONNA ASK YOU TO COME UP ON THIS ONE AND, AND I DIDN'T GIVE YOU A A ADVANCE ON THIS ONE. APOLOGIES. JUST TELL ME WHAT, WHAT ADDITIONAL TRAFFIC DATA IS NEEDED AT THIS INTERSECTION? BASED ON THE NUMBERS THAT WE HAD, UH, ORIGINALLY, UH, ON ACCOUNTS AND THAT WAS WITHOUT THE INTERSTATE BEING OPENED WITH PQ, WE FELT LIKE IT WOULD BE A GOOD IDEA TO HAVE THAT DATA SO WE CAN MAKE WHATEVER ADJUSTMENTS THAT WE NEED TO MAKE ON THE SIGNAL THAT PQ AND HOLLAND TO, TO BE SURE WITH THE HA THE PROPER TIMING, TIMING OF IT FITS IN PLACE? YES, SIR. THAT'S PART OF IT. AND THEN THERE'S SOME ADDITIONAL SIOUX SERVICE UTILITIES THAT WE ALSO GONNA LOOK AT BECAUSE OF SOME ADJUSTMENTS THAT WE WERE GONNA MAKE ON THE NORTH WEST CORNER OF THE AREA. OKAY. THE, THE, THE DI THE DITCH. THE DI YES SIR. THE BIG GAPING DITCH. OKAY. IT DOES THIS ADD T TIME TO NO SIR. IT'S, UH, NO SIR, IT DOES NOT. THANK YOU. AND THEY'VE BEEN DOING SOME OF THE WORK ALREADY, BUT, UH, WE WANTED TO BE SURE THAT WE HAVE THAT BECAUSE IT IS, IT IS IMPORTANT TO HAVE THE RIGHT DATA, NUMBER ONE. BUT NUMBER TWO, IF ANYBODY HAS SOME CONCERNS ABOUT, WE'LL BE ABLE TO SHOW THEM THE NUMBERS AND REFLECTIVITY OF THAT. AS FAR AS ANY DELAYS THEY, THEY'RE MOVING FORWARD WITH, WITH THE PROJECT ASPECT, I'M TOLD THAT WE PROBABLY WILL HAVE, UH, SOME PROJECTED RIGHT OF WAY MATS PROBABLY IN THE NEXT MONTH, MONTH AND A HALF. SO THEN THEY'LL GET REVIEWED AND THEN FROM THAT POINT THEN WE'LL DO APPRAISALS AND MOVE FROM THERE. GREAT. THANK YOU. I'LL BE ON RECORD, UH, HEAR FROM THE COUNCIL SEAT SAYING ANYTHING WE DO TO EXPEDITE WOULD BE APPRECIATED. AND THANK YOU FOR ALL YOU'RE DOING, FRED? YES, SIR. IS THAT A MOTION? COUNCILMAN THAT IT ABSOLUTELY IS. MOTION BY COUNCILMAN GOEY. SECOND BY COUNCILMAN KINNEY. ANY OPPOSITION? MOTION CARRIES ITEM 1 0 8, [108. 26-00744 ] AUTHORIZING MAYOR PRESIDENT TO EXECUTE A CONTRACT FOR PROFESSIONAL ENGINEERING SERVICES WITH BACTERIA CONSULTING SERVICES LLC FOR TRAFFIC DATA COLLECTION NEEDED FOR THE MOVE VR CORRIDOR, CORRIDOR ENHANCEMENT COLLEGE DRIVE, PERKINS ROAD TO I 10 IN AN AMOUNT NOT TO EXCEED $96,100 3 CENTS BY TRANSPORTATION AND DRAINAGE DIRECTOR. ANYONE HERE WI WISHING TO SPEAK ON THIS ITEM? TEAM NOW GO TO COUNSEL. I HAVE A MOTION. MOTION BY COUNCILWOMAN OSA. SECOND BY COUNCILWOMAN ROCKA. ANY OPPOSITION? MOTION CARRIES ITEM [109. 26-00743] 1 0 9 AUTHORIZING THE MAYOR PRESIDENT TO ENTER INTO A CONTRACT FOR THE DEPARTMENT OF EMERGENCY MEDICAL SERVICES WITH LIFE SHARE BLOOD CENTER. THIS CONTRACT IS FOR LIFE SHARE TO PROVIDE THE DEPARTMENT OF EMS WITH BLOOD, BLOOD COMPONENTS AND CERTAIN LAB SERVICES ENABLING THE DEPARTMENT OF EMS TO PROVIDE LIFESAVING TREATMENT WHEN CLINICALLY INDICATED NOT TO EXCEED $235,000 BY EMERGENCY EMERGENCY [00:45:01] MEDICAL SERVICES DIRECTOR. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? THEY KNOW GO TO COUNCIL. COUNCILMAN GODDE. MR. ES? CORRECT. THANK YOU SIR. MORE PROCESS RELATED QUESTIONS. JUST HAVE WE DONE THIS TYPE OF AN AGREEMENT BEFORE AND CAN YOU KIND OF WALK ME THROUGH WHAT, WHAT THIS WILL PRODUCE FOR YOUR DEPARTMENT? WHAT THIS PRODUCES FOR US IS IT GIVES US THE OPPORTUNITY TO INTRODUCE, UH, BLOOD PRODUCTS INTO THE PRE-HOSPITAL SETTING. UM, IT'S RELATIVELY, THE TREND IS GOING AROUND NATIONWIDE, BUT IN TRAUMA, I'LL GIVE YOU SOME BRIEF STATISTICS, IS THAT BASICALLY ABOUT 40% OF PATIENTS THAT RECEIVE BLOOD PRODUCTS PRE-HOSPITAL INCREASE THEIR SURVIVABILITY RATE. UM, BY OVER HALF. THIS COULD BE WHEN YOU RESPOND OR IN THE AMBULANCE RIDE TO WHEN WE RESPOND. UH, WE'LL HAVE BLOOD IN THE FIELD CURRENTLY NEW ORLEANS AND THERE'S SEVERAL OTHER ENTITIES AND THEN PLUS AROUND THE NATION. SO IT, AGAIN, IT'S NOT THAT WE'RE, WE TRY TO BE TRENDSETTERS AND WE'RE NOT, WE'RE TRYING TO FILL THE GAP THAT IF WE CAN BUY TIME AND GET THESE TRAUMA PATIENTS TO THE HOSPITAL YES. AND GET 'EM TO THE SURGICAL CENTER. AND THEN ALSO TOO, WE'RE GONNA TAKE IT, UH, DEEPER THAN JUST TRAUMA. WE'LL HAVE THE OPPORTUNITY TO BE ABLE TO GIVE BLOOD PRODUCTS WE CLINICALLY INDICATED FOR POST, UH, PARTUM HEMORRHAGE, UH, FROM DELIVERY AND OR OTHER BLUNT TRAUMA OR GI BLEEDS OR ANYTHING ELSE. SO IF IT'S INDICATED FOR US TO GIVE YOU BLOOD. 'CAUSE OUR GOAL IS IS TO GET YOU TO THE OPERATING ROOM. YEAH. UH, CRYSTAL, LLOYDS AND THE NORMAL FLUID VOLUME REPLACEMENTS THAT WE'VE DONE IN THE PAST, WHILE THEY DO FILL THE TANK BACK UP, THEY DON'T TRANSPORT OXYGEN, BUT BLOOD DOES. SO THE KEY TO US GETTING YOU AND GIVING YOU A VIABLE CHANCE AND A FIGHT TO BE ABLE TO SURVIVE IS PUTTING BLOOD IN YOUR BODY AND GETTING YOU TO, UH, A SURGEON. THIS IS THE FIRST CONTRACT OF THIS KIND WE'VE DONE FOR US IN THE PARISH FOR EMS. YEP. OKAY, GREAT. KUDOS US, US ENTERING INTO THIS GET OPENS THE DOOR AND THEN OUR, THE HOLY GRAIL IS WE'RE STARTING OFF WITH PACK RED BLOOD CELLS WITH THE GOAL OF BEING ABLE TO GIVE, UH, WHOLE BLOOD, WHICH IS THE HOLY GRAIL AND THE BEST THING YOU CAN GIVE. BUT YOU GOTTA CRAWL BEFORE YOU CAN WALK AND THEN RUN. SO, UH, OUR GOAL IS, IS TO GIVE EVERYBODY A FIGHTING CHANCE. WONDERFUL. IF IF YOU GET SOME DATA ON IT, YOU THINK IT'S WORTH PRESENTING, I THINK IT'D BE PHENOMENAL INFORMATION TO, TO HEAR FROM. I I CAN GIVE YOU ALL THE DATA YOU WANT. UH, WELL, I MEAN AS YOU, AS YOU GO THROUGH IT AND, AND WELL, YEAH, WE, WE TRUST ME THAT IT, WE'RE GONNA TRACK THIS. YEAH. 'CAUSE AGAIN, THIS $235,000 CONTRACT, THAT'S, THAT'S A MAX. WE DON'T INTEND ON THAT BEING THE INITIAL EXPENSE. BUT WE WANTED TO PAD ENOUGH ROOM 'CAUSE WE PLAN ON GROWING THIS. AND AGAIN, WE'RE GONNA START OFF WHAT WE'RE DOING TODAY. WE'VE HAD TO, WE DO HAVE SOME CAPITAL EXPENSES THAT WE'VE EATEN TO BE ABLE TO BUY THE EQUIPMENT AND ALL OF THE STUFF THAT WE HAVE TO DO. THERE'S SOFTWARE MONITORING, REFRIGERATION, ALL KINDS OF THINGS THAT YOU HAVE TO DO TO MAINTAIN COMPLIANCE. SO OUR ULTIMATE GOAL IS, IS TO GET EVERYTHING STARTED. AND THEN AGAIN, IT ALSO, WE CAN RECOVER A LOT OF OUR COSTS BECAUSE WE CAN BILL FOR IT AS WELL. UH, IF BE ABLE TO BILL AT THE ALS TWO RATE, WHICH IS THE HIGHEST RATE. AND WE WILL AT SOME POINT LOOK INTO BEING ABLE TO ADJUST OUR BILLING RATES IN ACCORDANCE. BUT THE REALITY OF IT IS, IS THERE'S REALLY NOT A PRICE THAT YOU CAN PUT ON SAVING LIVE. YEAH. A HUNDRED PERCENT. WHICH IS WHAT WE'RE TRYING TO DO HERE. THANK YOU MR. DIRECTOR. APPRECIATE IT. THANK YOU COUNCILMAN MO. SO GIMME I JUST LIKE A LITTLE QUICK RUNDOWN. IS THIS SOMETHING THAT WE RECONFIGURED THE, THE UNITS, ALL THE UNITS FOR, FOR REFRIGERATION STORAGE OR NO, YOU HAVE TO BE, WE DIDN'T, THERE IS ASSOCIATED TRAINING AND NOT JUST ANYBODY CAN DO IT. AND WE DID HAVE TO BUY SOME SPECIALIZED EQUIPMENT TO BE ABLE TO ADMINISTER THE BLOOD. THERE'S SOME RAPID INFUSES. THERE IS SOME SPECIAL REFRIGERATION AND DIFFERENT THINGS THAT WE HAVE TO BUY BECAUSE THAT'S PART OF BEING ABLE TO STAY IN COMPLIANCE. 'CAUSE THERE'S VERY TIGHT TOLERANCES THAT YOU HAVE TO MAINTAIN WITH THE BLOOD. UH, THE INITIAL STUFF WITH THE PACK. BLOOD, BLOOD CELLS. AS LONG AS WE FOLLOW ALL OF THOSE THINGS, THAT'S THE OTHER THING IS WE HAVE THE ABILITY TO EXCHANGE IT. SO IF WE DON'T USE IT WITHIN ABOUT TWO WEEKS OF THE BLOOD EXPIRING, WE CAN TAKE IT BACK TO THE, UH, BLOOD CENTER, EXCHANGE IT, AND THEN GET OTHER STUFF. BUT AGAIN, WE DID HAVE TO SPEND THE MONEY ON THE FRONT END TO BUY THE EQUIPMENT BECAUSE IT HAS VERY TIGHT TOLERANCE. IT HAS TO BE MONITORED. IT'S ALL WIRELESS AND EVERYTHING HAS TO STAY WITHIN THOSE SPECS. SO WE'RE TRYING TO DO EVERYTHING WE CAN TO LIMIT ANY WASTE. UH, BUT AGAIN, IT TAKES A LITTLE MONEY ON THE FRONT END TO BE ABLE TO SAVE LIVES. SO, SO THESE UNITS, THESE MODULES AND STUFF, THEY, THEY'LL BE BROUGHT IN BY, BY THE BLOOD, BLOOD SHARE PEOPLE TO Y'ALL. WE'LL GO PICK IT UP AND THEN REFRIGERATE IT. WE'LL HAVE, WE'LL HAVE A COUPLE BASE REFRIGERANT, UH, UNITS THAT ARE LIKE AT OUR CONNELLS VILLAGE STATION IN MIDDLE OF THE STATE. THAT'S WHAT I WANTED. DOES THE STATION HAVE TO BE INVOLVED WITH IT? UH, WELL WE HAVE, WE'LL HAVE THE, THE PROPER REFRIGERATING WITH HAS THE MONITORING SYSTEMS AND STUFF THERE THAT'LL STORE IT. AND THEN OUR SPRINT UNITS AND OUR, OUR BLOOD PROGRAM GUYS THAT'LL CARRY IT. THEY'LL GO THERE, THEY'LL SWAP IT OUT THERE. THEN WE HAVE SOME PORTABLE REFRIGERATION THAT THEY KEEP IN THE UNITS. SO WE DON'T, WE'RE NOT PUTTING IT ON EVERY UNIT. THAT'S NOT VERY COST EFFECTIVE. UH, BECAUSE WE DON'T WANT IT RIDING, RUNNING IN THE UNIT AND NEVER GET USED. IT'LL BE ON OUR, OUR, OUR [00:50:01] A LS RESPONSE UNITS BECAUSE THEY'LL BE TARGETING SPECIFIC THESE TYPES OF CALLS THAT ARE THE MVAS, THE SHOOTINGS, THE STABBINGS, ALL OF THE OTHER THINGS THAT GO ON THAT, THAT WOULD THANK YOU. THAT WAS GONNA BE MY NEXT ONE. IS THIS LIKE, YOU KNOW, DATA DRIVEN AS FAR AS WHAT UNITS AND WHERE AND AND SO ON? WE, YES. WE HAVE THE ABILITY THAT WE CAN LOOK AT OUR HEAT MAPS, WE CAN LOOK AT CERTAIN CALLS. WE CAN REALLY, UH, LOOK AT WHERE THE INDEX OF CALLS ARE IN THE HIGHEST CALL VOLUME VERSUS WE WOULDN'T NECESSARILY STAGE BLOOD IN THE NORTH END OF THE PARISH BECAUSE THE LOW FREQUENCY UH, OCCURRENCES VERSUS IN THE CENTER OF THE PARISH. AND THEN ALSO TOO, OUR PLAN IS ALSO TO EXPAND AND GO OUT FURTHER WITH OTHER AGENCIES IN THE PARISH. UH, ST. GEORGE AND OTHER PEOPLE HAVE CAPABILITIES TO BE ABLE TO DO SOME THINGS WITH US TO BE ABLE TO EXPAND THIS PROGRAM AND MAKE IT BIGGER. AND THEN THAT WAY WE CAN HAVE A BIGGER FOOTPRINT AND GET BLOOD TO PEOPLE FASTER. OKAY. AND MAXIMIZE OUR RESOURCES. THANK YOU. YES SIR. ANYONE ELSE? WE HAVE A MOTION BY COUNCILMAN. GO DAY. SECOND BY COUNCILWOMAN COLEMAN. ANY OPPOSITION? MOTION CARRIES. ADJUDICATED [Items 110 - 130] PROPERTIES. WE COULD TAKE ONE 10 THROUGH ONE 30 TOGETHER. LOT. 13 SQUARE THREE SUBDIVISION MAGNOLIA PLAYS. CONS. DISTRICT 10, COLEMAN MOTO OWN LOT. 3 42 SUBDIVISION GREENDALE CONS. DISTRICT FIVE HEARST. MY FATHER'S IN MY FATHER'S HOUSE. LOT 31 AND 32 SQUARE FOUR. SUBDIVISION SCOTLAND HEIGHTS COUNCIL DISTRICT TWO. KENNY MOTO OWN LOT. 18 SQUARE 29 SUBDIVISION EAST FAIRFIELD COUNCIL DISTRICT SEVEN HARRIS HIGH BIDDER FARRELL JOHNSON. I THIRD $700 LOT 19 SQUARE. 26 SUBDIVISION SOUTH BATON ROUGE COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER. JOHN CHRISTOPHER. $3,500 LOT 34 SQUARE 16 SOUTH BATON ROUGE SUBDIVISION SOUTH BATON ROUGE COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER TD REAL ESTATE GROUP LLCA HUNDRED DOLLARS LOT SIX SQUARE 41 SUBDIVISION SOUTH BATON ROUGE COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER. TD REAL ESTATE GROUP LLC $100 LOT 32 SQUARE 16 SUBDIVISION SOUTH BATON ROUGE COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER. TD REAL ESTATE GROUP LLCA HUNDRED DOLLARS LOT 2 67 A SUBDIVISION. HIGHLAND CREEK COUNCIL DISTRICT 12 ROCA HIGH BIDDER TD REAL ESTATE GROUP. A HUNDRED DOLLARS LOT. 17 AND 18 SQUARE 26 SUBDIVISION SOUTH BATON ROUGE COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER. JOHN CHRISTOPHER. $12,000 LOT. 14 SQUARE 29 SUBDIVISION GREENVILLE EXTENSION COUNCIL. DISTRICT SEVEN HARRIS HIGH BIDDER. JEROME JEROME SCALES A HUNDRED DOLLARS LOT. LOT. 11 AND 12 SQUARE 43. SUBDIVISION FORTUNE COUNCIL DISTRICT FIVE HEARST. THIS ONE'S BEEN REDEEMED. LOT. 10 SUBDIVISION PRESCOTT COUNCIL DISTRICT SEVEN HARRIS HIGH BIDDER. JDS INVESTMENT GROUP LLC $500 LOT 35. SUBDIVISION BAKERFIELD COUNCIL DISTRICT TWO. KENNY HIGH BIDDER. JDS INVESTMENT GROUP LLC $20,000 LOT 31 SUBDIVISION BELFORT COUNCIL DISTRICT SEVEN HARRIS HIGH BIDDER NAKIA WHITE $23,000 LOT SIX AND SEVEN SQUARE 12 SUBDIVISION PROGRESS PARK COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER PLANK ROAD CLBT INC. $500 LOTS. FIVE AND SIX SQUARE ONE SUBDIVISION ST. IRMA LEE. COUNCIL DISTRICT TWO. KENNY HIGH BIDDER JERMAINE COZY $100 LOT 73 SUBDIVISION EAST DAYTON COUNCIL DISTRICT SEVEN HARRIS HIGH BIDDER FARRELL JOHNSON. I THIRD $7,500 LOT 19 SUBDIVISION SWOT EDITION COUNCIL DISTRICT 10 COLEMAN HIGH BIDDER WAYNE LAWRENCE $2,800 LOT D SUBDIVISION. ROBERT A BRIAN TRACK COUNCIL. DISTRICT FOUR MOOCH HIGH BIDDER GERALD EDGE, $17,000 LOT THREE SQUARE 54. SUBDIVISION GREENVILLE EXTENSION COUNCIL, DISTRICT SEVEN HARRIS MODA OWN THERE'S BEEN A REQUEST TO DELETE ITEMS ONE 13 AND 1 21. I'D LIKE TO ENTERTAIN A MOTION TO APPROVE ALL ITEMS WITH THE EXCEPTION AND DELETE ITEMS ONE 13 AND 1 21. ANY ANYONE HERE WISHING TO SPEAK ON THESE ITEMS? THEN I WILL GO TO COUNCIL. COUNCILMAN HURST? YEAH. CAN I, UM, TAKE ONE 11 AND GIMME 30 DAYS ON IT OR WHATEVER THE NEXT MEETING IS. DEFER? YEAH. DEFER. DEFER. ITEM ONE 11. OKAY. DEFER ONE TO JULY 22ND. OKAY. COUNCILWOMAN COLEMAN, THEY LOSE THEIR MONEY. UH, YES. I'D LIKE TO RECOMMEND THAT. 1 25 AND 1 28. UM, I GUESS DEFER. I HADN'T HEARD ANYTHING FROM HIM. SO DEFER IT SHOULD DELETE IT. 1 25 AND 1 28. OKAY. OKAY, SO RECOMMENDATION IS FOR APPROVAL OF ALL ITEMS, [00:55:01] DELETION OF ITEMS ONE 13 AND 1 21 AND DEFER ITEMS 1 11, 1 25 AND 1 28 TO THE MEETING IN JULY. MOTION BY COUNCILMAN DUNN, JR. SECOND BY COUNCILMAN HURST. ANY OPPOSITION? MOTION CARRIES. ALL [ADMINISTRATIVE MATTERS (Part 1 of 2)] RIGHT, LET'S GO TO OUR SEPARATE CHIEF FOR ADMINISTRATIVE MATTERS. ADMINISTRATIVE MATTER. EMERGENCY ITEM AUTHORIZING MAYOR PRESIDENT TO EXECUTE AN AMENDED AND RESTATED SUBRECIPIENT AGREEMENT WITH THE EAST BATON ROUGE PARISH HOUSING AUTHORITY AND RELATED PROJECT PARTIES INCLUDING PARTNERS FOR PROGRESS INCORPORATED. DOING BUSINESS AS PARTNERS SOUTHEAST AND CYPRUS AT DALE. PHASE ONE, LP FOR THE CYPRUS AT DALE. PHASE ONE. AFFORDABLE HOUSING DEVELOPMENT PROJECT FUNDED IN PART THROUGH AMERICAN RESCUE PLAN ACT. CORONAVIRUS STATE AND LOCAL FISCAL FISCAL RECOVERY FUNDS. SO AS TO CLARIFY AND REALIGN THE EXISTING AGREEMENT WITH THE PROJECT'S. LOW INCOME HOUSING TAX CREDIT FINANCING STRUCTURE, DOWNSTREAM LOAN DISBURSEMENT FRAMEWORK PAYMENT TERMS AND COMPLIANCE REQUIREMENTS WITH NO INCREASE TO THE EXISTING ALLOCATION AND NO CHANGE TO THE APPROVED PROJECT PURPOSE BY THE COMMUNITY DEVELOPMENT DIRECTOR. REASON IT'S BEING REQUESTED AS AN ADMINISTRATIVE MATTER IS TO ENSURE COMPLIANCE WITH INTERNAL DEADLINES. WE NEED A MOTION TO WAIVE THE RULES THERE. A MOTION TO WAIVE THE RULES. MOTION BY COUNCILWOMAN ROCCA. SECOND BY COUNCILWOMAN COLEMAN. WE'RE GONNA HAVE A PUBLIC HEARING ON THE MOTION TO WAIVE THE RULES. ANYONE HERE WISHING TO SPEAK ON THE MOTION TO WAIVE THE RULES? SEEN NONE. WE'RE GONNA HAVE A VOTE ON THE MOTION TO WAIVE THE RULES. IS THERE ANY OBJECTION ON MOTION TO WAIVE RULES? OBJECTION. MY COUNCILMAN HURST ITEM CANNOT BE HEARD. MOVING ON, WE'RE GONNA DO APPOINTMENTS 1 31 THROUGH 1 34. WE'RE GONNA TAKE TOGETHER 1 31 BOARD OF APPEAL CONCURRENT WITH THE MAYOR PRESIDENT'S REPLACEMENT OF MICHAEL ABBAS, WHO IS NOT SEEKING REAPPOINTMENT. THIS IS A THREE YEAR TERM BAT BILL BATON ROUGE BOARD OF COMMISSIONERS FILLING AN UNEXPIRED TERM FOR RODNEY BRAXTON'S. TERM ENDS DECEMBER 31ST, 2027. CURRENT BALLOT. CAROLYN COLEMAN 1 33. CAPITAL HOUSING TAXING DISTRICT BOARD OF COMMISSIONERS. CONSIDERATION OF REPLACING GEORGE JEAN. THIS IS AN INDEFINITE TERM, NOBODY ON THE CURRENT BALLOT AND 1 34 HOUSING AUTHORITY OF EAST BATON ROUGE PARISH. ONE APPOINTMENT MUST FILL THE UNEXPIRED TERM OF CHRIS BROWN. HIS TERM EXPIRES AUGUST 9TH, 2030. MUST BE A RESIDENT COMMISSIONER. REQUEST US TO DEFER ALL OF THESE ITEMS UNTIL THE JULY MEETING. ANYONE WISH TO SPEAK ON THESE ITEMS? NUMBER? GO TO COUNCIL MOTION BY COUNCILWOMAN COLEMAN. SECOND BY COUNCILMAN DUNN, JR. ANY OPPOSITION? MOTION CARRIES. ITEM 1 35, [135. 26-00801] HOUSING AUTHORITY OF EAST BATON ROUGE PARISH. CONSIDERATION OF REAPPOINTMENT REPLACING BRANDON KELLY. THIS IS A FIVE YEAR TERM CURRENT BALLOT OF BRANDON KELLY REQUESTING REAPPOINTMENT. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SCENE NOW WILL GO TO COUNCIL. WE HAVE A MOTION. MOTION BY COUNCILWOMAN COLEMAN. SECOND BY COUNCILMAN HURST. IS THERE ANY OPPOSITION? IT WAS DEFERRED. MOTION CARRIES ON. 1 35. HE DEFERRED. WE DEFERRED 1 31 THROUGH ONE 30. I WANNA LET'S GO BACK TO 1 34. YOU WANNA RECONSIDER 1 34? YES. BECAUSE I'D LIKE TO MAKE A, A MOTION FROM THE FLOOR FOR BEVERLY CLAYBURN TO BE CONSIDERED FOR THAT APPOINTMENT. PLEASE. SO WE HAVE TO CONFIRM THAT THESE PEOPLE ARE RESIDENTS. OKAY. SO IT MIGHT BE BEST TO DEFER IT AND THEN WE CONFIRM IT. ALRIGHT. AND WE CAN, WE CAN UM, HAVE THIS, THE APPOINTMENT BACK ON RIGHT ON JULY 22ND. OKAY. CONFER THAT SHE IS A DISTRICT 10 RESIDENT. PERFECT. PLEASE MA'AM. OKAY. ALRIGHT. THANK YOU . ALL RIGHT. CHANGE ORDERS. [Items 136 - 138] WE'RE GONNA TAKE 1 36 THROUGH 1 38 TOGETHER. 1 36 EVANGELINE ELLA MONSTER DRIVE AND EVANGELINE STREET AREA. A DA TRANSITION PROJECTS CONTRACTOR PROC CIVIL LLC CHANGE ORDER AMOUNT, $134,579 AND 12 CENTS. 1 37 SALES TAX STREET AND ROAD REHABILITATION PROGRAM PROJECT 19 SEVEN HOLLYWOOD STREET AIRLINE, DEC SCENE AND EVANGELINE STREET AIRLINE TO BATON ROUGE CONTRACTOR. BARBARA BROTHERS CONTRACTING LLC CHANGE ORDER AMOUNT, $479,912 AND 24 CENTS. AND 1 38 GROOM ROAD. MCU TO PLANK ROAD. PHASE ONE CONTRACTOR, KCR CONTRACTOR, LLC. CHANGE ORDER AMOUNT, $69,656 AND 34 CENTS. ANYONE HERE WISHING TO SPEAK ON THESE ITEMS? GO TO COUNCIL. WE HAVE A MOTION. MOTION BY COUNCILMAN KENNEY. SECOND BY COUNCILWOMAN AMAROSA. IS THERE ANY OPPOSITION? MOTION CARRIES [139. 26-00642] ITEM 1 39, RECEIVING A REPORT FROM THE EMPLOYEE'S RETIREMENT SYSTEM ON PLAN, DESIGN AND CHANGE RECOMMENDATIONS BY COUNCILMAN [01:00:01] HURST. I'M GONNA GO AHEAD AND RECEIVE THE REPORT FIRST AND THEN WE'LL HAVE A PUBLIC HEARING ON IT. GOOD EVENING. GOOD EVENING. COUNCIL MEMBERS. UH, SO MY NAME IS AISHA MEZA. I'M THE INTERIM DIRECTOR OF SERS. WE HAVE BEEN REQUESTED TO COME AND PRESENT, UH, ABOUT A YEAR AGO. THE METRO COUNCIL REQUESTED THAT WE DO A PENSION REVIEW AND SO WE HIRED AN OUTSIDE ACTUARY TO DO SO. ALSO AT THE REQUEST OF METRO COUNCIL, WE HAVE THE BOARD HAS COME UP WITH POTENTIAL CHANGES SHOULD ANY CHANGES BE MADE. UM, I HAVE WITH ME TONIGHT, UH, A GOOD PORTION OF PEOPLE. I HAVE MY ASSISTANT DIRECTOR, SALLY WITHERS. I HAVE MY CHAIR, MY CHAIRMAN, JAY DANIELS. I HAVE OUR ACTUARY, SHELLY JOHNSON. I HAVE OUR OUTSIDE COUNSEL. LAURA GALE SULLIVAN. I HAVE OUR INVESTMENT CONSULTANT, JOHN BREATH. AND I HAVE KEVIN SULLIVAN FROM USI. AT THIS TIME, I'D LIKE TO CALL UP KEVIN TO PRESENT, UH, THE FINDINGS. KEVIN, GOOD AFTERNOON EVERYONE. UH, SO I'M GONNA TAKE A FEW MOMENTS TO GO THROUGH A SUMMARY OF OUR, UH, OF OUR ANALYSIS AND OUR RESULTS. AND I'M GONNA JUMP AROUND A LITTLE BIT HERE. I'M GONNA, SO MY APOLOGIES TO WHOEVER'S RUNNING THE SLIDE. I'M GONNA START ON SLIDE THREE. UH, 'CAUSE I THINK THIS IS IMPORTANT TO KINDA SEE A LITTLE BIT OF THE HISTORY OF THE PLAN. SO US COMING IN AS INDEPENDENT ACTUARIES. WHAT WE WANNA DO IS KINDA LOOK AT THE HISTORY OF THE PLAN AND, AND GIVE YOU A SUMMARY OF WHAT WE SEE WHEN WE LOOK AT THE PLAN. ONE, ONE MORE. SLIDE OVER PLEASE. UM, THIS SHOWS A HISTORY, UH, AT THE TOP OF THE FUNDED STATUS OF THE PLAN AS A, UH, ASSETS AS A PERCENTAGE OF LIABILITIES. AND YOU SEE A, A GENERAL SLOW DECLINE IN THE FUNDED RATIO OF THE PLAN. UH, BACK IN 2013, THE FUNDED RATIO WAS OVER 70% DECLINING TO, UH, BETWEEN 60 AND 65%. UH, AS OF 2024, THE BLUE LINE REPRESENTS THE ACTUARIAL VALUE OF ASSETS. THAT'S A SMOOTH VALUE THAT WE ACTUARIES USE TO SMOOTH GAINS AND LOSSES OVER A FIVE YEAR PERIOD. THE ORANGE, UH, LINE REPRESENTS MARKET VALUE, WHICH HAS MUCH MORE VOLATILITY AT THE BOTTOM. THAT GREEN LINE REPRESENTS THE EMPLOYER CONTRIBUTION RATE, AND THAT HAS BEEN INCREASING OVER TIME. SO THROUGHOUT THIS PERIOD HAS INCREASED FROM UNDER 30% TO, AT THIS TIME JUST, UH, JUST UNDER 40. BUT WITH THE JANUARY 1ST, 2026 VALUATION, THAT NUMBER IS NOW OVER 40%. SO THIS KIND HIGHLIGHTS THE, THE CHALLENGE. YOU'VE GOT A DECLINING GENERAL FUNDED RATIO AND AN INCREASING EMPLOYER CONTRIBUTION RATE. AND WITH THAT, I'M GONNA SKIP BACK OVER TO, TO SLIDE ONE AND TALK A LITTLE BIT ABOUT COST VERSUS RISK. THIS IS SOMETHING YOU'LL HEAR ME TALK A LOT ABOUT. UH, WE AS ACTUARIES LOOK AT PLANS AND TRY TO VALUE THE LIABILITIES BASED ON A NUMBER OF THINGS. EVERYTHING FROM INVESTMENT RETURN, PARTICIPANT MORTALITY, BUT ALSO THINGS THAT ARE MORE DIFFICULT TO, UM, TO VALUE THAT MAY RELATE TO PARTICIPANT BEHAVIOR IN TERMS OF WHEN FOLKS WORK OVERTIME, WHEN FOLKS DECIDE TO RETIRE, WHAT FORM OF PAYMENT THEY DECIDE TO TAKE. DO THEY CHOOSE TO ENTER THE DROP? AND IF SO, AT WHAT TIME AND FOR HOW LONG? AND THOSE THINGS, UM, CONT TEND TO DRIVE UP PLAN COSTS BECAUSE THEY ARE MORE DIFFICULT TO PREDICT. GENERALLY ANYTHING THAT IS RELATED OR WHERE PARTICIPANT CHOICES INVOLVED, YOU'RE GOING TO HAVE, UH, MORE UNEXPECTED COST VARIATION. AND THOSE VARIATIONS TEND TO BE TO THE UPSIDE AS OPPOSED TO THE DOWNSIDE. SO THEY TEND TO TO COST THE PLAN MORE. AND SOMETIMES THESE RISKS CAN OFFSET SUCH THINGS AS HIGH INFLATION MAY BOOST INVESTMENT RETURN, BUT IT MAY, WHICH HELPS THE PLAN, BUT IT MAY ALSO DRIVE UP SALARIES, WHICH HURTS THE PLAN, UH, OVER TIME. UH, AND ALSO EARLIER THAN EXPECTED RETIREMENTS AND LONGER LIFESPANS CAN COMPOUND OTHER COSTS OF THE PLAN. UH, ON THE NEXT SLIDE, THIS KIND OF BREAKS DOWN THE, THE EMPLOYER CONTRIBUTION COST AND EMPLOYEE CONTRIBUTION COSTS BOTH AT 2015 ON THE RIGHT AND 2020, I'M SORRY, 2015 ON THE LEFT, 20, 25 ON THE RIGHT. AND THOSE GREEN BARS REPRESENT THE EMPLOYEE NORMAL COST. SO THE EMPLOYEE CONTRIBUTIONS AT 9.5%. THOSE BLUE BARS REPRESENT THE EMPLOYER COSTS, WHICH ARE NOW IN 2025, UH, AT ABOUT 6%. THE YELLOW REPRESENTS PLAN EXPENSES THAT, THAT ARE JUST, UH, NORMAL AND CUSTOMARY. BUT THEN THE RED BAR REPRESENTS THE AMORTIZATION OF THE UNFUNDED ACCRUED LIABILITY. THAT'S THE SUM TOTAL OF ALL OF THESE UNEXPECTED PLAN VARIATIONS. THESE LOSSES THAT HAVE OCCURRED OVER TIME. AND YOU'LL NOTICE THE DRAMATIC CHANGE FROM 2015 TO 2025, UH, WHICH, WHICH KIND OF IN A NUTSHELL SUMMARIZES THE CHALLENGE WITH THE PLAN. THIS VARIATION OF COST THAT'S DIFFERENT THAN EXPECTED, THAT'S DIFFICULT TO PREDICT AND TEND TO BE ALL TO THE UPSIDE IN TERMS OF RAISING LIABILITIES. AND THIS IS WHAT HAS DRIVEN UP THE TOTAL CONTRIBUTION, INCLUDING THE EMPLOYEE, UH, UH, CONTRIBUTIONS FROM JUST UNDER 40% TO NEARLY 50% AT CURRENT TIME. SO WHEN WE LOOK AT PLAN CHANGES, [01:05:01] WE'RE LOOKING LESS ABOUT THE COST, WHICH IS REALLY REPRESENTED BY THE GREEN AND THE BLUE BARS AT THE BOTTOM. THAT'S COST, THAT'S THE PREDICTABLE PART. WE'D LIKE TO REDUCE THOSE THINGS THAT ARE CREATING THE UNPREDICTABLE PART, THE PART IN RED. SO NOW JUMPING OVER A COUPLE SLIDES JUST FOR SOME SLIDE, UH, FOUR, THAT IS SOME SUMMARY OF OBSERVATIONS. SO OVER 60% OF THE CURRENT NEW BENEFITS IS ACTUALLY PROVIDED BY THE MEMBER CONTRIBUTIONS, NOT BY, UH, CITY PARISH CONTRIBUTIONS. UH, IT'S ABOUT 6% FOR THE EMPLOYER AT ABOUT 9.5% FOR EMPLOYEES. IF WE BREAK THAT APART INTO PUBLIC SAFETY AND NON-PUBLIC SAFETY, THAT 6% BREAKS APART AS ABOUT 15.1% FOR PUBLIC SAFETY, ABOUT 0.8% FOR NON-PUBLIC SAFETY, WHICH MEANS THAT FOR NON-PUBLIC SAFETY, THE VAST MAJORITY OF THE BENEFIT IS PROVIDED BY THE MEMBERS' OWN CONTRIBUTIONS. AND THE CURRENT HIGH CONTRIBUTION REQUIREMENTS ARE GENERALLY DUE TO A HISTORY OF LOSSES VERSUS EXPECTED, AS I'VE MENTIONED, WHICH WE'LL WE'LL GET INTO IN JUST A MOMENT. UH, MANY OF THESE ARE, ARE, THE SOURCES ARE VERY CLEAR, OTHERS ARE, ARE NOT AS CLEAR. SO WHEN WE'RE LOOKING AT MITIGATING THE COST GOING FORWARD, THIS MAY BE MORE ABOUT REDUCING RISK TO THE PLAN AND LESS ABOUT TRYING TO REDUCE OVERALL BENEFIT LEVELS. SO ON SLIDE FIVE, JUST A LITTLE BIT ABOUT HOW WE AS, AS PENSION ACTUARIES MEASURE GAINS AND LOSSES. WE, WE MEASURE ALL GAINS AND LOSSES VERSUS WHAT WE EXPECT TO OCCUR. SO FOR EXAMPLE, ON THE INVESTMENT SIDE, WE ASSUME A 7% RETURN. THAT MEANS THAT A 6% RETURN WHILE STILL A POSITIVE RETURN, IS A 1% LOSS VERSUS EXPECTED. SO THAT'S HOW WE MEASURE GAINS AND LOSSES. SO THIS SHOWS A FOUR YEAR HISTORY HERE OF 7% IS EXACTLY AS EXPECTED. SO THAT'S NO GAIN OR LOSS, BUT A 6% IS A 1% LOSS. A 3% ACTUAL RETURN IS A 4% LOSS, AND A 12% RETURN IS ONLY A 5% GAIN VERSUS EXPECTED. SO ON SLIDE THE NEXT SLIDE, THIS SHOWS A HISTORY OF THE GAINS AND LOSSES. AND I APOLOGIZE, THIS IS A, A LITTLE BIT OF A BUSY GRAPH, BUT KIND OF SOME KEY TAKEAWAYS HERE. ABOUT TWO THIRDS OF THE WAY UP IS THE ZERO POINT. SO THAT IS WHERE, UH, IN A PERFECT WORLD ALL OF OUR GAINS AND LOSSES WOULD OFFSET SO THAT EVERYTHING WOULD, WOULD TEND TO BE ON AVERAGE AS EXPECTED. SO WE MAY HAVE BETTER THAN EXPECTED EXPERIENCE SOMEWHERE, BUT IT'S OFFSET SOMEWHERE ELSE. BUT AS YOU'LL SEE, THE VAST MAJORITY OF THESE BARS, WHICH REPRESENT THE INDIVIDUAL SOURCES OF LOSSES, WHICH BLUE BEING INVESTMENT RETURN, ORANGE BEING SALARY, YELLOW BEING RETIREMENTS, AND AND ON, UH, THE OTHERS TEND TO BE SMALLER COMPONENTS. BUT I, I WILL POINT OUT THAT OTHER CATEGORY, WHICH IS KIND OF THE UNIDENTIFIED AMOUNTS, WHICH I'LL, I'LL GET INTO IN A MOMENT. BUT IF YOU'LL NOTICE, THESE LINES TEND TO ALL BE TOWARDS THE BOTTOM, WHICH MEANS WE ARE HAVING VASTLY MORE LOSSES THAN GAINS. SO THIS KIND OF DEMONSTRATES WHY WE'RE SEEING THE CONTRIBUTIONS GO UP WHILE WE'RE SEEING THE FUNDED RATIO COME DOWN. 'CAUSE WE'RE HAVING LOSSES VERSUS EXPECTED. NOW, THE BIGGEST SOURCE IS THE INVESTMENT LOSS, WHICH IS IN BLUE. YOU'LL SEE IT'S TO THE DOWNSIDE, EIGHT OF THE 10 YEARS SHOWN HERE WITH, UH, 2021 BEING EXCEPTION, AND A 20, 20 BEING A SMALL EXCEPTION AS WELL. NOW THIS IS ON OUR ACTUARIAL VALUE BASIS, SO THIS IS AFTER WE INCLUDE THE FIVE YEAR SMOOTHING OF GAINS AND LOSSES. SO THESE RESULTS MIGHT BE VERY DIFFERENT FROM WHAT YOUR INVESTMENT ADVISOR REPORTS, BECAUSE THEIRS IS BASED ON A MONEY WEIGHTED RETURN FOR THE INDIVIDUAL YEAR. THIS IS BASED ON A DOLLAR WEIGHTED FIVE YEAR AVERAGE. SO IT COULD BE VERY DIFFERENT. BUT AGAIN, THESE OTHER LOSSES ARE THINGS THAT ARE NOT REPRESENTED BY INVESTMENT RETURN OR SALARY EXPERIENCE OR MORTALITY, OR THE TIME FOLKS RETIRE. IT TENDS TO BE THINGS THAT ARE IN THE PLAN THAT TEND TO BE, UH, EXPENSIVE COST OR EXPENSIVE RISK WISE, AND THEREFORE TRANSLATES INTO EXPENSIVE COST WISE. AND THAT'S SUCH THINGS AS THE DROP. THE DROP IS SOMETHING THAT IS DIFFICULT TO PREDICT WHEN FOLKS ARE GOING TO TAKE IT. ALSO, THE DROP IS SOMETHING THAT, IT ALMOST BECOMES A MATH PROBLEM FOR EVERYONE. THEY CAN LOOK AT IT AND DETERMINE IF, IF SOMEONE REALLY PUTS PENCIL TO PAPER, THEY CAN FIGURE OUT THE OPTIMAL TIME TO RETIRE AND GET THE MOST VALUE OUT OF, OUT OF THE DROP. UH, ALSO THINGS LIKE MILITARY TIME, UH, THAT'S PURCHASED AND ALSO TERMINAL COMPENSATION ITEMS THAT ARE GETTING INCLUDED KIND OF A SURPRISE RIGHT AT RETIREMENT, THAT TENDS TO BOOST THE, THE PENSION ALSO FOR FOLKS WHO ARE RETIRING, UH, OVERTIME COULD BE ANOTHER FACTOR THAT GETS LUMPED INTO THAT OTHER CATEGORY. SO WHEN I, IN, IN A MOMENT, WHEN I TALK ABOUT THINGS THAT WE MIGHT RECOMMEND THAT WOULD HELP IMPROVE MAYBE THE FUTURE STATUS OF THE PLAN, IT'S, IT'S GOING TO TEND TO BE REMOVING THESE RISKY COMPONENTS TO THE PLAN. UH, ON SLIDE SEVEN, VERY QUICKLY, THIS JUST SHOWS WHAT THAT TRACK OF THE FUNDED RATIO MIGHT LOOK LIKE WITHOUT SOME OF THESE LOSSES. SO, UH, THE RED IS THE ACTUAL ACTUARIAL VALUE OF ASSET FUNDED RATIO. IF WE TAKE OUT THOSE OTHER LOSSES, THAT'S THE BLUE LINE. IF WE TAKE OUT THE ASSET LOSSES, THAT'S THE ORANGE LINE, WHICH IS ALREADY LARGELY INCREASING, AND THE GREEN LINE AND MINUS ALL LOSSES, WHICH CERTAINLY WOULD HAVE BEEN INCREASING OVER THIS 10 OR 12 YEAR PERIOD, MINUS THESE, THESE OTHER LOSSES ON SLIDES, UH, EIGHT AND NINE, I'M [01:10:01] GONNA TAKE THESE TOGETHER. THESE ARE JUST KIND OF BREAKING DOWN THE VARIOUS PROVISIONS OF THE PLAN AND POINTING OUT WHERE WE SEE RISK IN THE PLAN. UH, CERTAINLY WITH EARNED COMPENSATION, UH, THE, THE INCLUSION OF OVERTIME IS CERTAINLY A RISK FACTOR. THAT'S SOMETHING THAT'S DIFFICULT TO PREDICT, UH, TO, TO A LARGE EXTENT. PARTICIPANTS GENERALLY HAVE SOME CHOICE AS TO WIN AND HOW THEY WORK OVER TIME, AND THEREFORE, FOLKS CAN CHOOSE TO WORK OVERTIME, RIGHT, IN THE FIVE YEARS LEADING UP TO THE RETIREMENT DATE, UH, OR ENTER, UH, LEADING UP TO THE TIME THEY ENTER THE DROP, AND THEREFORE KIND OF MAXIMIZING THEIR BENEFITS. UH, ALSO THOSE TERMINAL COMPENSATION ITEMS, THERE'S THE RISK OF A COST SHOCK WHEN THOSE AMOUNTS GET ADDED TO THE, UH, THE BENEFIT VALUE. UH, ALSO THE DROP, AS I MENTIONED EARLIER, IS SOMETHING THAT DOES, UH, TEND TO CREATE LOSSES FOR THE PLAN, SIMPLY BECAUSE IT IS A COST FACTOR AND IT'S SOMETHING THAT'S DIFFICULT TO PREDICT. ARGUABLY, UM, AS TIME GOES ON, WE THINK MORE AND MORE PEOPLE ARE ELECTING THE DROP BECAUSE THEY ARE REALIZING THE VALUE OF THE DROP. THEN LASTLY, ONE, ONE QUICK COMMENT I'LL MAKE ON THIS IS THE COLA. THERE, THERE'S NOT A COLA IN THE PLAN, WHICH OBVIOUSLY COSTS LESS BECAUSE YOU'RE NOT PROVIDING A COLA, BUT FOR MANY PENSION PLANS OVER THE LAST 20 OR 25 YEARS, UH, THEY'VE HAD BETTER THAN EXPECTED INFLATION EXPERIENCE. SO THAT'S HELPED TO OFFSET SOME, PERHAPS WORSE THAN EXPECTED INVESTMENT RETURN EXPERIENCE. SO SOMETIMES, UH, THAT'S AN EXAMPLE WHERE, UH, CERTAIN RISK CAN HELP OFFSET. SO THE LACK OF ECOLA MEANS YOU DON'T HAVE THAT TO OFFSET. SO, UH, GOING OVER A FEW SLIDES WHEN YOU LOOK AT SOME, UH, INITIAL PROPOSALS WE MADE OR SUGGESTIONS WE MADE FOR, FOR PLAN DESIGN CHANGES, MANY OF THEM ACTUALLY INCLUDED, UH, A COLA. SO I'LL HOP OVER TO SLIDE 10, UH, AND I'LL GO THROUGH THESE FAIRLY QUICKLY. THESE ARE, I THINK WE HAVE SIX OPTIONS ON NON, NON-PUBLIC SAFETY AND A FEW OPTIONS AS WELL ON PUBLIC SAFETY. UH, FOR, FOR PLAN CHANGES, GENERALLY THIS WOULD DO SUCH THINGS AS LIMIT COMPENSATION TO BASE SALARY, SO EXCLUDE THE OVERTIME, UH, ALSO ELIMINATE THE TERMINAL COMPENSATION ITEMS THAT COULD BE INCLUDED FOR COMPENSATION OR SERVICE. UH, OB OBVIOUS, UM, ARGUABLY OPTION ONE LARGELY KEEPS THE BENEFIT STRUCTURE IN PLACE, ALTHOUGH IT'S 2.5% VERSUS A MAXIMUM OF THREE, BUT STILL ALLOWS A MAXIMUM BENEFIT OF 90%. IT'S SLIGHTLY MORE YEARS OF SERVICE, UH, AND MAKES SOME MODEST CHANGES TO THE, UM, THE EARLY RETIREMENT PROVISION. IT WOULD CHANGE THE DROP FROM A, A DROP LIKE YOU CURRENTLY HAVE TO WHAT WE WOULD CALL A PARTIAL LUMP SUM OPTION, SO THAT WHEN A PARTICIPANT RETIRES AFTER THEY'VE MADE THE DECISION TO RETIRE, SO THEY DON'T HAVE TO DO THIS YEARS IN ADVANCE, THEY CAN CHOOSE TO GET A PORTION OF THAT BENEFIT UPFRONT AS A LUMP SUM, AND THEN THEIR ONGOING BENEFITS ARE ACTUARILY REDUCED FOR THAT. SO THAT MEANS IT, IT IS TRULY COST NEUTRAL TO THE PLAN. UH, MANY, MANY FOLKS WILL ARGUE THAT DROPS IN GENERAL ARE COST NEUTRAL, BUT THEY RARELY ARE IN PRACTICE, AND I THINK YOUR EXPERIENCE KIND OF DEMONSTRATES THAT. UH, AND OPTION ONE AND SEVERAL OF THESE OPTIONS ALSO WOULD INCLUDE SOME AMOUNT OF A, OF A, A COST OF LIVING INCREASE. THEY TEND TO BE SOMEWHAT OF A, A OF A DILUTED OR MUTED, UH, INCREASE. SO, FOR EXAMPLE, 80% OF THE CPI IN EXCESS OF 1%, BUT WITH A CAP OF 2%. SO IN MANY YEARS, THEY'D BE GETTING SOMETHING BETWEEN ZERO AND 2%. BUT AGAIN, THAT'S, AND THAT'S TO HELP PARTIALLY OFFSET FOR THE, THE OTHER CHANGES MADE TO TO THAT OPTION. UH, I WON'T GO THROUGH ALL OF THESE IN, IN DETAIL, BUT, UH, OPTIONS TWO AND THREE, FOR EXAMPLE, SLIGHTLY REDUCE THAT BENEFIT MULTIPLIER FROM 2.5% TO, TO SOMETHING LESS. UH, ON SLIDE 11, UH, A COUPLE OF QUICK COMMENTS. SO THESE, UH, OPTION FOUR, FOR EXAMPLE, REDUCED THE BENEFIT MULTIPLIER TO 1% AND ADDED A, A MORE SIGNIFICANT DEFINED CONTRIBUTION OR A SIGNIFICANT DEFINED CONTRIBUTION COMPONENT. I, I WILL SAY THAT, UH, WE DID LOOK AT A DEFINED CONTRIBUTION OPTION OR A SOCIAL SECURITY OPTION. UH, GENERALLY IF YOU WERE TO MOVE TO A DEFINED CONTRIBUTION OPTION, YOU WOULD BE REQUIRED TO INCLUDE SOCIAL SECURITY AS PART OF THAT. THE PROBLEM WITH THAT IS, IS THAT THAT 6.2% THAT BOTH MEMBERS AND THE CITY PARISH WOULD CONTRIBUTE TO SOCIAL SECURITY WOULD ALREADY OFFSET THE FULL AMOUNT THAT THE, THE, UH, CITY PARISH IS PUTTING INTO THE PENSION, WHICH IS ABOUT 6% AND, AND OFFSET TWO THIRDS OF WHAT THE MEMBERS THEMSELVES ARE PUTTING IN. SO, ARGUABLY YOU WOULD, UH, REPLACE THE PENSION WITH SOCIAL SECURITY AND NOT GIVE, UH, PARTICIPANTS ANYTHING IN ADDITION TO THAT. AND YOU, YOU HAVEN'T, UH, BROKEN EVEN YET. YOU, YOU'RE STILL PAYING MORE THAN YOU WOULD HAVE UNDER THE CURRENT PLAN. SO THAT'S WHY WE DON'T THINK SOCIAL SECURITY IN A DEFINED CONTRIBUTION OPTION, UH, IS VIABLE. SEE ON SLIDE 12, THIS SHOWS, UH, WHAT WE WOULD CALL THE REPLACEMENT RATIOS FOR, UH, FOR, FOR PARTICIPANTS UNDER THESE VARIOUS OPTIONS FOR NON-PUBLIC SAFETY. UH, CURRENTLY A TYPICAL PARTICIPANT WITH 30 YEARS OF SERVICE AT AGE 60 WOULD GET AN 85% BENEFIT OPTION, ONE WOULD GIVE A SMALLER BENEFIT, BUT ONCE YOU FACTOR IN THE IMPACT OF THE [01:15:01] COLA, THAT GETS ON, UH, BACK ABOVE 80%. THE OTHER OPTIONS, THE PORTION SHOWN IN GREEN IS THE PORTION THAT WOULD BE FROM THAT DEFINED CONTRIBUTION ACCOUNT, THE, THE CONVERSION OF THAT, SO TO SPEAK, TO A, A MONTHLY BENEFIT. SO GENERALLY ALL OF THESE WOULD HAVE A SMALLER BENEFIT, UH, THAN THE, UM, UM, THAN THE CURRENT PLAN. ALTHOUGH OPTION SIX IS THE EXACT SAME AS THE CURRENT PLAN. OPTION SIX IS INCREASING THE, UH, EMPLOYEE CONTRIBUTION RATE FROM 9.5 TO TO 10%. SO, UH, I'M NOT GONNA GO THROUGH THIS IN MUCH DETAIL TO JUST BE RESPECTFUL OF YOUR TIME. SLIDE 13 HAS SOME 10 YEAR, UH, COST SAVINGS NUMBERS FOR EACH OF THESE DIFFERENT OPTIONS. AND IT'S IMPORTANT TO NOTE THAT WHEN YOU'RE LOOKING AT MAKING A PLAN CHANGE, THESE CHANGES DO NOT, UH, IMPACT YOUR CURRENT PARTICIPANTS. THEY WOULD ONLY IMPACT PARTICIPANTS AFTER A CHANGE IS MADE. SO THIS IS LESS ABOUT CHANGING WHAT THE PLAN LOOKS LIKE RIGHT NOW AND MORE ABOUT CHANGING WHAT THE PLAN'S GONNA LOOK LIKE IN 30, 35 YEARS. UH, ON SLIDE 14, JUST ANOTHER COUPLE OF QUICK COMMENTS ON THE, ON THE DROP AND, AND MAYBE A LITTLE BIT ABOUT WHY I'M NOT, I'M NOT A HUGE FAN OF THE DROP, UH, BASED ON HOW PARTICIPANTS TEND TO USE THE DROP, THE DROP IS PROVIDING A BENEFIT IN ADDITION TO THEIR NORMAL BENEFIT, UH, PARTICIPANTS IN MANY CASES HAVE THE ABILITY TO MAX OUT THEIR BENEFIT, UM, ENTER THE DROP, AND THEN GET AN ADDITIONAL BENEFIT IN ADDITION TO WHAT THEY WERE WOULD'VE ALREADY GOTTEN HAD THEY RETIRED AT THAT DATE. UH, IN, IN PRACTICE, PARTICIPANTS ARE GENERALLY NOT CHOOSING BETWEEN, FOR EXAMPLE, RETIRING AT 55 OR ENTERING THE DROP IN, RETIRING AT 60. THEY'RE ALWAYS GONNA RETIRE AT 60 ANYWAY. IT'S JUST A QUESTION OF DO THEY ENTER THE DROP AT 55? AND THAT'S WHY IT DOES COME DOWN FOR MANY PEOPLE TO, TO A MATH PROBLEM. YOU KNOW, WHEN'S THE BEST TIME TO ENTER THE DROP AND MAXIMIZE MY BENEFIT? AND UNFORTUNATELY, NOT, NOT EVERYONE MAKES THE, NOT EVERYONE FOR THEMSELVES MAKES THE BEST DECISION. THAT'S ANOTHER REASON I'M NOT A FAN OF THE, THE DROP. IT'S NOT ALWAYS, UH, EQUAL AMONG, AMONG EVERYONE. UH, ALSO A LITTLE COMMENT ON SLIDE 16 ON THE MILITARY SERVICE. UH, THIS IS SOMETHING THAT, UM, ALSO IS CREATING, UH, KIND OF SURPRISE COST FOR THE PLAN DUE TO THE FACT THAT IT'S DIFFICULT TO PREDICT HOW MANY FOLKS ARE GOING TO, TO ELECT THIS. IT TENDS TO BE A SMALL NUMBER, BUT THE DOLLAR AMOUNT PER PERSON CAN BE, CAN BE QUITE SIGNIFICANT. IT CAN BE, UM, YOU KNOW, 75,000 TO 250,000 PER MEMBER, BUT THAT'S, UH, HALF A MILLION TO A MILLION AND A HALF ACROSS THE PLAN, UH, ON A, ON A TYPICAL YEAR. SO ON SLIDE 16, 17, 18 AND 19, I WON'T GO THROUGH THESE IN GREAT DETAIL, BUT, UH, THESE ARE OPTIONS FOR PUBLIC SAFETY AS WELL. UH, HERE, OPTION ONE IS WE'RE, WE'RE KEEPING THAT BENEFIT MULTIPLIER A LITTLE HIGHER AT 2.75, UH, WITH A MAXIMUM OF 80%. IT DOES INCLUDE A COLA AND ALL OF THESE OPTIONS, JUST AS WITH THE NON-PUBLIC SAFETY, UH, WE WOULD PROPOSE ELIMINATING THE DROP IN, REPLACING IT WITH A PARTIAL LUMP SUM PLAN BECAUSE WE DO SEE THE CO THE DROP AS A, UH, AS A KIND OF A KEY, UH, SURPRISE COST DRIVER FOR THE PLAN. ALRIGHT, WELL THAT KINDA BRINGS ME TO THE END OF MY PREPARED COMMENTS. I'M PR HAPPY TO ANSWER ANY QUESTIONS YOU HAVE OR UNLESS THERE'S ANYTHING ELSE TO REPORT ON, WE'LL GO AHEAD AND HAVE A PUBLIC HEARING ON THE REPORT. WE, WE'VE GOT MORE , WE'VE GOT MORE. OKAY. THANK YOU KEVIN. UH, NO, WE HAVE, WE HAVE A LOT MORE FOR ALL OF YOU. UM, I DID WANNA GIVE THE OPPORTUNITY TO OUR INVESTMENT, UM, CONSULTANT JOHN BREATH, TO HAVE HIM KIND OF GIVE A LITTLE BIT, UH, SHED A LITTLE COLOR ON OUR INVESTMENTS AND WHERE WE ARE. UM, 'CAUSE I KNOW WHAT KEVIN SPOKE ABOUT, UH, CAN LOOK A LITTLE DAUNTING, JOHN. THANK YOU, AISHA. UM, SO I THINK AISHA DID CIRCULATE TO EVERYONE. UH, JUST A BRIEF MEMO THAT I HAD WRITTEN, UH, JUST REGARDING, UH, PERFORMANCE. THIS IS TITLED MARINER, AND AGAIN, MY NAME'S JOHN BREATH. I WORK WITH, UH, MARINER, UH, INVESTMENT CONSULTING. UH, WE'RE FORTUNATE ENOUGH TO WORK WITH, UH, NINE DIFFERENT PLANS, UH, WITHIN THE STATE OF LOUISIANA, SEVERAL STATEWIDE SYSTEMS AS WELL AS A HANDFUL OF LOCAL SYSTEMS. UM, YOU KNOW, ONE THING THAT I WOULD TALK ABOUT, YOU KNOW, WHEN YOU LOOK AT KEVIN'S REPORT, YOU KNOW, AS HE REFERRED TO, YOU KNOW, THE INVESTMENT RETURNS THAT YOU SEE THERE, THOSE ARE THE ACTUARIAL INVESTMENT RETURNS. THOSE ARE GONNA BE A LITTLE BIT DIFFERENT THAN ANY OF THE REPORTS THAT YOU MAY GET FROM US ON A QUARTERLY BASIS. REPORTING ON THE PERFORMANCE OF THE SYSTEM, UM, THE NUMBERS IN THERE, AND SHELLY CAN GO INTO THE, INTO GREAT DETAIL. UM, THOSE ARE ESSENTIALLY KIND OF A, AN AVERAGE OVER FIVE YEARS WHERE THEY'RE TAKING ESSENTIALLY 20% OF EACH YEAR'S RETURN TO CREATE A COMPOSITE RETURN. SO IT'S A LITTLE BIT DIFFERENT. WHAT I WANTED TO JUST TALK A LITTLE BIT ABOUT WAS, UM, JUST THE OVERALL INVESTMENT PERFORMANCE OF THE SYSTEM, HOW IT'S ALLOCATED RELATIVE TO PEER SYSTEMS, FIRST AND FOREMOST WITHIN THE STATE OF LOUISIANA, BUT THEN ALSO, [01:20:01] UH, RELATIVE TO SOME NATIONAL SYSTEMS. UM, WE'VE BEEN FORTUNATE ENOUGH TO WORK WITH THE SYSTEM SINCE 2019. UM, WHEN WE STARTED WORKING WITH THE SYSTEM, IT WAS VERY BROADLY DIVERSIFIED, VERY WELL RUN. UM, SUBSEQUENT TO THAT, WE'VE ULTIMATELY WORKED TO ADD A FEW THINGS HERE AND THERE, MAKE A FEW SMALL CHANGES. UM, NOTHING IN TERMS OF WHOLESALE CHANGES, BUT, UH, DURING OUR TIME WORKING WITH THE SYSTEM, WE HAVE, UM, BEEN INVOLVED WITH THE SYSTEM AS IT'S BROUGHT DOWN, ITS ASSUMED RATE OF RETURN. SO AT ONE POINT IN THE PAST IT WAS AS HIGH AS 8%. IT CAME DOWN TO SEVEN AND THREE QUARTERS, SEVEN AND A HALF, SEVEN AND A QUARTER. UH, AND MORE RECENTLY FOR ABOUT THE LAST FIVE YEARS OR SO, IT'S BEEN BEEN AT 7%. WHAT THAT AFFORDS, UH, A BOARD IS THE ABILITY TO LOOK AT KIND OF THE RELATIONSHIP BETWEEN RISK AND REWARD IN ITS PENSION SYSTEM. UM, IN TODAY'S DAY AND AGE, BECAUSE INTEREST RATES ARE SO LOW, THAT HAS PUSHED INSTITUTIONAL INVESTORS, PENSION PLANS, FOUNDATIONS, ENDOWMENTS, UM, AWAY FROM TRADITIONAL FIXED INCOME, WHICH IS VERY, UM, SAFE, UH, DOESN'T EXHIBIT A LOT OF VOLATILITY. IT HAS PUSHED THEM INTO THINGS LIKE THE STOCK MARKET, REAL ESTATE, MARKET INFRASTRUCTURE, PRIVATE EQUITY, THINGS LIKE THAT. A LOT OF WHAT WE HEAR TODAY FROM, YOU KNOW, THE ADMINISTRATION IN TERMS OF THINGS THAT ARE NOW GONNA BE OFFERED IN 401K PLANS, FOR INSTANCE. SO THESE ARE ALL WIDELY ACCEPTED INSTITUTIONAL ASSET CLASSES. AND WHEN YOU LOOK AT THE PORTFOLIO FOR SPR AS OF 1231, UM, IT'S VERY BROADLY DIVERSIFIED. IT INCORPORATES US STOCK MARKETS, NON-US STOCK MARKETS, PRIVATE EQUITY, FIXED INCOME, HEDGE FUNDS, REAL ESTATE AND INFRASTRUCTURE. UM, WHEN I LOOK AT THAT ASSET ALLOCATION, IT IS VERY SIMILAR TO WHAT I WOULD CONSIDER THE AVERAGE OR THE NORM FOR LARGE RETIREMENT SYSTEMS IN THE UNITED STATES. AND WHEN I SAY LARGE, I'M GENERALLY TALKING ABOUT ROUGHLY $500 MILLION AND HIGHER SYSTEMS. UM, ONE THING THAT I PUT TOGETHER IN MY MEMO WAS A, JUST A COMPARISON OF SIE R'S PORTFOLIO PERFORMANCE AND, AND ASSET ALLOCATIONS RELATIVE TO SOME OF THE OTHER STATEWIDE SYSTEMS. AND SO ONE THING THAT I HIGHLIGHTED, UM, YOU KNOW, THERE'S A COUPLE SYSTEMS, THE SCHOOL EMPLOYEES, UH, THE TEACHER'S RETIREMENT SYSTEM. THESE BOTH HAVE OVER 40% OF THEIR ASSETS IN ALTERNATIVE INVESTMENTS. AND WHEN I TALK ABOUT ALTERNATIVES, I'M TALKING ABOUT REAL ESTATE AND INFRASTRUCTURE, PRIVATE EQUITY, UH, HEDGE FUNDS. WHEN YOU LOOK AT THOSE, THE RETURNS OF SPRS RELATIVE TO THESE PLANS, UH, THEY COMPARE VERY FAVORABLY. UM, ONE THING THOUGH THAT HAS CERTAINLY STOOD OUT, AND IF YOU, YOU KNOW, ARE FAMILIAR WITH THE PERFORMANCE OF ANY OTHER SYSTEMS, AND ESPECIALLY IN THE STATE OF LOUISIANA OVER THE LAST THREE YEARS, YOU HAVE WANTED TO BE AS HEAVILY INVESTED IN THE STOCK MARKET AS POSSIBLE. YOU KNOW, WE ALL HEAR ABOUT THINGS LIKE MICROSOFT AND APPLE AND NVIDIA, YOU KNOW, THIS AI CRAZE THAT'S REALLY DRIVEN STOCK MARKETS HIGHER. IF YOU'RE A SYSTEM THAT OWNS PRIVATE ASSETS, BE IT INFRASTRUCTURE, REAL ESTATE, PRIVATE EQUITY, THOSE DON'T PRICE EVERY DAY. AND SO WHEN NVIDIA IS GAINING 3000% OVER A FIVE YEAR PERIOD, IF YOU'RE IN A PRIVATE EQUITY FUND, UM, IT'S NOT APPRECIATING AT THAT SAME RATE OVER TIME. IT'S ALL GOING TO EVEN OUT. WE'VE CERTAINLY SEEN THAT, UH, IN THE PERFORMANCE OF THE, THE SPRS PORTFOLIO. BUT IN THIS THREE YEAR PERIOD, YOU HAVE SEEN SPR KIND OF SLIGHTLY FALL BEHIND THE LOUISIANA STATE AVERAGE, BUT IT ACTUALLY IMPORTANTLY HAS OUTPERFORMED BOTH OF THOSE OTHER LARGE SYSTEMS IN THE STATE WITH A VERY HEAVY ALLOCATION TO PRIVATE INVESTMENTS. UM, YOU KNOW, A COUPLE THINGS I INCLUDED, I KIND OF TOOK A LOOK AT THE LAST FIVE CALENDAR YEARS OF PERFORMANCE. AND WHAT YOU SEE IS ESSENTIALLY SPRS OUTPERFORMING THE LOUISIANA, LOUISIANA AVERAGE THREE OUT OF THOSE FIVE YEARS. THE TWO YEARS WHERE WE DIDN'T, 2023 AND 2024 WERE AGAIN, REALLY TIED TO THAT BREAKOUT STOCK MARKET PERFORMANCE WHERE WE DIDN'T HAVE QUITE AS MUCH EXPOSURE. AND THEN WHEN YOU LOOK AT THE LONG TERM, WHAT YOU SEE IS ESSENTIALLY A SPRS RETURN THAT'S IN LINE WITH THE LOUISIANA AVERAGE. NOW, OBVIOUSLY, WHAT WE WANT TO DO AS ADVISOR TO THE PLAN IS GENERATE A PORTFOLIO THAT'S SUBSTANTIALLY OUTPERFORMING OUR LOUISIANA PEERS AND OUR NATIONAL PEERS. BUT WHERE I THINK IT'S IMPORTANT FOR YOU ALL AS YOU'RE LISTENING TO THESE COMMENTS IS TO UNDERSTAND SPRS IS NOT OUT IN THE COLD. IT IS NOT EXPERIENCING INVESTMENT PROBLEMS, WRITE-OFFS, FRAUDS, ANYTHING LIKE THAT. UH, WE ARE IN LINE WITH, UH, NATIONAL SYSTEMS OF OUR SIZE IN TERMS OF THE, THE ASSET CLASSES WE USE, THE ASSET ALLOCATION THAT WE USE AND THE UNDERLYING MANAGER PERFORMANCE. BUT WHEN YOU START A, WHEN YOU START LOOKING AT HOW THESE NUMBERS GET ADDED TOGETHER FOR THE ACTUARIAL REPORT, TIMING CAN BE A BIG ISSUE. UM, YOU KNOW, RIGHT NOW WHAT I WOULD SAY IS, YOU KNOW, HAVING A CALENDAR YEAR END CAN BE HARD BECAUSE, UM, YOU KNOW, YOU THINK ABOUT THE LAST FEW CALENDAR YEARS WHEN WE HAVE A LOSS, AND KEVIN KIND OF REFERRED TO THOSE YEARS WHERE WE DON'T [01:25:01] HIT 7% AS A LOSS YEAR. FOR US, IT HASN'T BEEN A TWO OR 3% RETURN FOR THE SYSTEM. IT'S BEEN LOSING 5%, OR IT'S EXPERIENCING A TERRIBLE YEAR, LIKE 2022 WHERE THE SYSTEM LOST 10%, DRAMATICALLY OUTPERFORMED MOST SYSTEMS THAT YEAR, BUT STILL LOST THAT. SO THEN THAT'S SOMETHING THAT WE THEN HAVE TO DIGEST OVER THE NEXT FIVE YEARS. UH, SO AGAIN, I THINK, YOU KNOW, THE, THE VOLATILITY THAT WE'VE SEEN IN MARKETS THAT HAS BEEN MORE OF THE IMPACT WITH THESE INVESTMENT LOSSES, IT HAS NOT BEEN ANY MISMANAGEMENT OR MISALLOCATION OF THE SYSTEM. SO WAS HOPING TO JUST TO KIND OF COME IN, OFFER A LITTLE BIT MORE BACKGROUND. AGAIN, HOPEFULLY MY MEMO KIND OF SUPPORTS A LITTLE BIT OF THAT AND KIND OF HELPS JUST OFFER A LITTLE BIT MORE CLARITY. JOHN. UH, SO NEXT, WHAT I WOULD LIKE TO PRESENT IS THE BOARD MET AFTER, UH, HAVING THE USI PRESENTATION. THE BOARD MET AND THEY COLLECTIVELY FELT THAT IF CHANGES NEEDED TO BE MADE BY THE METRO COUNCIL, THAT THE CHANGES NEEDED TO BE DONE. UH, FIRST THE EMPLOYEE BASE NEEDED TO BE SPLIT INTO TWO BASES. ONE PUBLIC SAFETY, ONE NON-PUBLIC SAFETY. AND THE REASON FOR THAT IS THE EMPLOYEE CONTRIBUTION RATE CHANGES. AT THAT POINT, UH, THE BOARD DID AGREE THAT THAT SHOULD BE MADE. I DO WANT SHELLY TO SPEAK A LITTLE BIT ABOUT THE SPLIT RATE AND WHAT THAT DOES TO THE OVERALL FUNDING AND THE BUDGET. AND I THINK THAT WILL PROVIDE A LITTLE BIT MORE COLOR TO GO ON TO THE OTHER CHANGES THAT WERE RECOMMENDED. SHELLY. THANK YOU AISHA. UM, MY NAME IS SHELLY JOHNSON AND I'M THE ACTUARY FOR SPRS. UM, SO THERE'S ACTUALLY, FOR THE LAST SEVERAL YEARS THERE'S BEEN, I'VE BEEN REACHED OUT TO AND ASKED WHAT WOULD THE CONTRIBUTION RATE LOOK LIKE IF WE WERE TO SPLIT IT BETWEEN PUBLIC SAFETY MEMBERS AND NON-PUBLIC SAFETY MEMBERS. SO JUST TO GIVE YOU A LITTLE BIT OF CONTEXT, THE, THE AGGREGATE EMPLOYER CONTRIBUTION RATE, IF WE CALCULATE THE SAME RATE FOR ALL EMPLOYERS BASED ON THE LAST VALUATION, THE CONTRIBUTION RATE FOR 2027 IS 38.1%. IF WE WERE TO SPLIT THAT AND RECOGNIZE THAT THE PUBLIC SAFETY MEMBERS HAVE ONE SET OF BENEFITS AND THE NON-PUBLIC SAFETY MEMBERS HAVE ANOTHER SET OF BENEFITS, AND LET ME QUALIFY THAT BY SAYING THE BENEFIT STRUCTURE WAS SPLIT IN 2015, SEPTEMBER, 2015. ANYONE HIRED BEFORE THAT HAS THE SAME PLAN OF BENEFITS ANYONE HIRED AFTER THAT. PUBLIC SAFETY HAS A DIFFERENT SET OF BENEFITS. SO WHEN I CALCULATE A, A SEPARATE RATE FOR EACH, WE ARE PUTTING ALL PUBLIC SAFETY MEMBERS, EVEN IF THEY HAVE THE SAME BENEFITS AS OTHER MEMBERS, THAT JUST SEGREGATING THE PUBLIC SAFETY CONTRIBUTION RATE FROM THE NON-PUBLIC SAFETY CONTRIBUTION RATE. WHAT THAT WOULD DO IS IT WOULD REDUCE THE NON-PUBLIC SAFETY CONTRIBUTION RATES TO 34.5% FOR 2027 FOR PUBLIC SAFETY. IT WOULD INCREASE THE CONTRIBUTION RATE TO 48.8%. AND SOME OF THE ASSUMPTIONS BEHIND WHAT WE'VE DONE HERE IS WE'RE ONLY SEPARATING THE NORMAL COST. THE NORMAL COST IS THE COST OF THE BENEFIT THAT'S CURRENTLY BEING ACCRUED BY CURRENT MEMBERS. THE UAL PAYMENT WOULD STILL BE SHARED AS THE SAME PERCENTAGE OF PAYROLL FOR ALL EMPLOYERS. SO THEY'RE CURRENTLY PAYING THE UAL AS A PERCENTAGE OF PAYROLL. ALL EMPLOYERS ARE PAYING THE SAME PERCENTAGE OF PAYROLL TOWARDS THE UAL THAT WOULD CONTINUE UNDER THIS PROPOSAL. THE ONLY THING THAT WOULD BE DIFFERENT IS THAT THE, WE'D BE RECOGNIZING THE COST OF THE ACCRUING BENEFIT BEING HIGHER FOR THE PUBLIC SAFETY MEMBERS. SO THAT WOULD TAKE US FROM, UM, 30.1%. AND I, I SHOULD ALSO SAY THAT 38.1% IS NET OF A, A PAYMENT THAT'S BEING MADE SEPARATELY FOR, FROM THE FIRE DEPARTMENT. IF WE INCLUDED THAT IN IT WOULD BE THE 40.1%, AND THEN IT'S THAT 40.1% THAT GETS SPLIT BETWEEN THE 34.5 AND THE 48.8. SO I KNOW THAT'S A LOT OF NUMBERS I'M THROWING OUT AT YOU. DOES THAT, DOES Y'ALL HAVE ANY QUESTIONS? ? OKAY. NOT TO CONFUSE YOU ANY WITH ALL THOSE NUMBERS, UM, BUT I DID WANNA HAVE SHELLY COME UP AND SPEAK FIRST BECAUSE THE BOARD FELT THAT IF WE SPLIT THE TWO GROUPS OF, UH, MEMBERS, THEN IT MAKES IT A LITTLE BIT EASIER TO KIND OF DIGEST WHAT BENEFITS SHOULD BE CHANGED IF CHANGED. UM, FIRST WE DECIDED ACROSS THE BOARD, AND I SAY WE, IT'S REALLY THE BOARD, UH, [01:30:01] FIRST ACROSS THE BOARD. CURRENTLY OUR SYSTEM ALLOWS FREE MILITARY TIME. SO IF A MEMBER COMES IN AND SAYS, HEY, I'VE GOT THREE YEARS OF MILITARY TIME. HERE'S MY FORM, WE ACCEPT IT AND WE ADD THREE YEARS OF SERVICE CREDIT TO THEIR TIME. WE ARE THE ONLY SYSTEM IN THE STATE THAT ALLOWS FREE TRADE. EVERYBODY ELSE SAYS, SURE, I'LL TAKE YOUR MILITARY TIME, BUT YOU HAVE TO BUY IT AT AN ACTUARIAL RATE. SO IN ELIMINATING THE FREE TRADE AND STILL ALLOWING THE MEMBER TO HAVE IT, BUT NOW THEY HAVE TO BUY IT, IT JUST KIND OF PUTS US IN LINE WITH OUR PEERS. AND THAT WOULD BE FOR BOTH, UH, PUBLIC SAFETY, NON-PUBLIC SAFETY. THE NEXT IS THE NEXT CHANGE PROPOSED IS THE NON VESTED DEATH BENEFIT. AND THAT IS IMMEDIATELY DAY ONE, UNEMPLOYMENT MEMBERS ARE GIVEN THIS BENEFIT. SO DAY ONE, YOU HAVE A GREAT DAY AT THE OFFICE THAT NIGHT, YOU GO TO WALMART, YOU SLIP ON A GRAPE AND YOU PASS AWAY. THAT MEANS, FROM THAT DAY FORWARD, YOUR SPOUSE UNTIL AND IF THEY EVER GET REMARRIED, GETS EVERY MONTH $600 A MONTH. SO YOU AS A MEMBER, DAY ONE RIGHT SLIP ON A GRAPE, YOU, YOU'RE GONE. UM, WE NOW, AS A, AS A PENSION PLAN, WILL, WILL PAY YOUR SPOUSE. IT COULD ALSO HAPPEN NINE YEARS, 11 MONTHS AND 29 DAYS. NOW, ONCE YOU HIT THAT 10 YEAR MARK AND YOU'RE VESTED, IT'S A LITTLE DIFFERENT. WE HAVE DIFFERENT OPTIONS FOR PROVIDING A BENEFIT. BUT WHEN YOU'RE NON VESTED, THE ONLY THING WE HAVE IS, IS THE $600. THAT'S FINE, EXCEPT IT'S NOT SERVICE CONNECTED. NOW IF YOU'RE AT THE OFFICE AND ALL OF A SUDDEN THE BUILDING JUST FALLS DOWN ON YOU, THAT MAKES SENSE. YOU ARE AT THE OFFICE, YOU ARE DOING YOUR JOB. IT MAKES A LITTLE SENSE TO HAVE A SERVICE CONNECTED DEATH BENEFIT, A DEATH BENEFIT THAT'S NOT SERVICE CONNECTED DOES NOT MAKE SENSE. WE ARE, UH, ON AN ISLAND BY OURSELF, ONCE AGAIN WITH OUR STATE PEERS. SO THE BOARD FELT THAT YES, WE SHOULD PROBABLY GET, CHANGE THAT TO GET RID OF IT. I WOULD MAKE THE RECOMMENDATION THAT IF YOU DO ELIMINATE IT, IT PROBABLY IS ELIMINATED IN THE REGARDS THAT IT IS NON-WORK RELATED. SO IF THERE IS A SERVICE CONNECTED DEATH, MEANING, YOU KNOW, ELEVATOR GOES DOWN AND AND YOU DEMISE, THEN SURE THERE IS A, A SERVICE CONNECTED DEATH BENEFIT. BUT IF YOU SLIP ON A GRAPE AT WALMART, NO, NOT SO MUCH. BUT I WOULD KIND OF MAKE THAT RECOMMENDATION FOR YOU ALL TO THINK ABOUT. UM, THAT IS NOT WHAT THE BOARD APPROVED, BUT I DO WANT YOU TO THINK ABOUT THAT. UH, THE NEXT TWO, THE NEXT TWO CHANGES WERE ONLY MADE TO NON-PUBLIC SAFETY. SO PUBLIC SAFETY, BECAUSE THEIR RATE IN THE SPLIT RATE IS SO, IS SO HIGH CHANGING THEIR BENEFITS DID NOT MAKE SENSE. THEY'VE GOT GREAT BENEFITS, BUT THEY'RE ALSO PAYING FOR THEM. SO KEEPING THEM AND THEIR BENEFITS THE WAY THEY ARE MADE SENSE FOR NON-PUBLIC SAFETY. HOWEVER, THERE WERE TWO CHANGES THAT WERE RECOMMENDED AND THE BOARD FELT YES, THE FIRST IS CHANGING THE DROP FROM A THREE YEAR, OR I'M SORRY, FROM A FIVE YEAR PROGRAM TO THREE YEARS. CURRENTLY MEMBERS ARE ALLOWED TO DO A FIVE YEAR DROP. AT THE END OF THAT FIVE YEARS, THEY HAVE TO TERMINATE EMPLOYMENT. THEIR DROP INTEREST STARTS FROM THE DAY THEY START THE DROP PROGRAM. THE CHANGES THAT ARE RECOMMENDED ARE TO DO A THREE YEAR DROP. ONCE THE THREE YEARS ARE DONE, YOU THEN CAN CONTINUE WORKING. THIS WOULD ALLOW YOU TO EARN A SUPPLEMENTAL BENEFIT. THAT MEANS TO ADD ON MONEY TO YOUR PREVIOUS RETIREMENT BENEFIT. ALSO, YOUR DROP INTEREST DOES NOT START UNTIL YOU TERMINATE. SO WHAT IT DOES IS IT ALLOWS THE EMPLOYEE TO CONTINUE WORKING IF THEY WOULD LIKE TO, BUT THEY'RE NOT EARNING THE DROP INTEREST, THE INCENTIVE FOR THEM TO THEN LEAVE AND TO ENJOY RETIREMENT WOULD BE TO START GAINING THAT DROP INTEREST. SO THAT IS ONE OF THE BIGGER CHANGES. THAT IS WHAT OUR STATE PEERS DO, MOST OF OUR STATE PEERS DO. IT DOES, IT BRINGS US IN LINE WITH OUR PEERS AND NOW IT'S, IT'S AN APPLES TO APPLES IF SOMEONE WANTS TO GO AND WORK FOR THE GOVERNMENT. AND THE LAST CHANGE THAT THE BOARD RECOMMENDED, UM, I WILL HAVE SALLY WITHERS COME UP HERE AND SPEAK TO IT, IS REMOVING THE TWO FOR ONE LEAVE TRADE, SALLY? YES. OH, YOU ARE THE EXPERT ON BENEFITS, MA'AM. ALRIGHT. HI. YES. SO, UM, I DON'T KNOW HOW FAMILIAR Y'ALL ARE WITH, UM, THE CITY'S ACCRUED LEAVE, BUT EVERY CITY EMPLOYEE CAN ACCUMULATE SICK AND VACATION TIME. UM, AND WHEN THEY COME IN TO SEE US FOR RETIREMENT ESTIMATES, UM, THEY CAN TRADE IN THOSE HOURS OF LEAVE FOR RETIREMENT CREDIT. SO IF THEY HAVE ROUGHLY A YEAR OF LEAVE ON A ONE FOR ONE BASIS, THAT IS ONE YEAR OF RETIREMENT CREDIT. ONE DAY OF LEAVE EQUALS ONE DAY OF RETIREMENT CREDIT. [01:35:01] SO THEY CAN HAVE 24 YEARS GIVE US A YEAR OF THEIR TIME, AND NOW THEY'VE GOT 25 YEARS OF SERVICE. UM, IF THEY CHOOSE THE ONE FOR ONE OPTION AND THEN THEY GET ON DROP, WE TAKE THOSE HOURS, WE TRADE THEM FROM THEM AT THE TIME THAT THEY ENTER DROP, AND THEN WHILE ON DROP THEY ACCUMULATE SICK AND VACATION TIME. UM, WHEN THEY DO RETIRE, THEY CAN BE PAID UP TO 960 HOURS OF THEIR LEFTOVER LEAVE FROM THEIR DEPARTMENT. UM, ON THE FLIP SIDE, THERE'S ALSO WHAT WE CALL A TWO FOR ONE OPTION. SO IT WORKS OPPOSITE FOR EVERY TWO DAYS OF LEAVE YOU TRADE IN, YOU GET ONE DAY OF RETIREMENT CREDIT. SO IF YOU GAVE US THAT SAME YEAR, WE WOULD ONLY GIVE YOU CREDIT FOR SIX MONTHS. SO IT SEEMS SILLY. WHY WOULD I DO THAT? WELL, WHEN YOU RETIRE, YOU COULD POTENTIALLY GET PAID DOUBLE THE AMOUNT OF LEAVE. SO THE RETIREMENT OFFICE WILL PAY YOU UP TO 960 HOURS OF YOUR LEAVE AND THE, YOUR DEPARTMENT WILL PAY YOU UP TO NINE 60. SO IT'S A COMBINATION OF 1920 MATS WHEN YOU RETIRE. SO THE RETIREMENT OFFICE HAS BEEN PAYING, UM, SICK LEAVE BALANCES, UM, AS PART OF THE RETIREMENT PACKAGE. SO THIS RECOMMENDATION WOULD REMOVE THAT OPTION. OKAY. ALRIGHT. SO THOSE ARE THE CHANGES THAT THE BOARD WOULD RECOMMEND TO THE METRO COUNCIL. SHOULD THE METRO COUNCIL WANT TO MAKE ANY CHANGES TO THE PLAN? AND AT THIS POINT NOW, I AM COMPLETE WITH OUR PRESENTATION. OKAY. WE'RE GONNA HAVE A PUBLIC HEARING. IS ANYBODY WISHING TO SPEAK ON THE REPORT? ANYBODY? AND I'M GONNA GO TO COUNCIL COUNCILMAN DUNN JR. THANK YOU. I'M GONNA START WITH SHELLY. CAN YOU COME BACK UP PLEASE? SHELLY? I'M GONNA GO BACK TO THE BENEFITS SPLIT STARTING IN 2015. IF YOU CAN JUST KIND OF WALK US BACK THROUGH THOSE PERCENTAGES, THE DIFFERENCES AND BE SPECIFIC FOR US AND THOSE WHO ARE WATCHING AT HOME. UH, WHO YOU'RE REFERENCING WHEN YOU'RE SAYING, UH, THE 40% VERSUS THE 30%, IS THAT THE EMPLOYER CONTRIBUTING THAT TO THE EMPLOYEE? IS THAT THE EMPLOYEE? BECAUSE I THINK IT WAS A LITTLE VAGUE ON WHO THAT WAS COMING FROM. AND ALSO WHEN YOU MENTIONED EMPLOYERS, I ASSUME YOU MENTIONED DIFFERENT DEPARTMENTS AS THE EMPLOYER, BUT JUST CLARIFY ALL OF THAT. BE A LITTLE BIT MORE SPECIFIC IN DETAIL ABOUT WHO YOU'RE ACTUALLY TALKING ABOUT. OKAY. SO THESE, THESE CONTRIBUTION RATES THAT I WAS REFERRING TO ARE SPECIFICALLY EMPLOYER CONTRIBUTION RATES. THE EMPLOYEES, WHETHER THEY'RE PUBLIC SAFETY OR NON-PUBLIC SAFETY PAY 9.5%. THE PROPOSED SPLIT IS ONLY APPLICABLE TO THE EMPLOYER CONTRIBUTION RATE. OKAY. SO, UM, I MEAN OF COURSE IT, IT, IT COULD BE CHANGED, YOU KNOW, THIS IS JUST WHAT'S, WHAT'S, AND I'M NOT EVEN SURE IS THIS PART OF THE SPECIFIC PROPOSAL OF THE BOARD. OKAY. UM, AND GO AHEAD AND GIMME THE PERCENTAGES AGAIN. OKAY. SO POST 2015, I GUESS. 'CAUSE IT WAS THE SAME PRIOR TO THAT. RIGHT? THIS, THIS SPLIT WOULD BE APPLICABLE REGARDLESS OF YOUR DATE OF HIRE. SO ALL EMPLOYER EMPLOYERS FOR ALL NON-PUBLIC SAFETY MEMBERS WOULD BE 34.5%. THE CONTRIBUTION RATE FOR EMPLOYERS, FOR ALL PUBLIC SAFETY MEMBERS, WHICH ARE FIRE EMS CONSTABLES, UM, THAT CONTRIBUTION RATE WOULD BE 48.8%. AND THAT IS SIMPLY BASED ON THE DIFFERENCE IN BENEFITS FOR THE MEMBERS WHO WERE HIRED AFTER 2015 FOR PUBLIC SAFETY. COUPLE MORE THINGS. YOU TALKED ABOUT THE DIFFERENCE IN BENEFITS. WHAT ARE SOME OF THOSE DIFFERENCES? PUBLIC SAFETY VERSUS NON-PUBLIC SAFETY. OKAY. LET ME GO TO MY SUMMARY OF BENEFITS PAGE AND WHY ARE YOU LOOKING FOR THAT? IF, IF THIS HELPS, UM, MAYBE YOU CAN COME WITH THIS ONE OFF THE TOP OF YOUR HEAD WITHOUT FINDING THAT. JUST KIND OF TALK ABOUT THE JUSTIFICATION. IS THIS, UH, BEST PRACTICES, IS THIS SOMETHING THAT, YOU KNOW, RECENTLY CAME ABOUT BY, YOU KNOW, GIVING PUBLIC SAFETY WORKERS A HIGHER BENEFIT VERSUS REGULAR EMPLOYEES? TALK ABOUT THE JUSTIFICATION OF THAT. OKAY. SO IT'S VERY COMMON FOR PUBLIC SAFETY MEMBERS TO HAVE A DIFFERENT PLAN OF BENEFITS. UM, I'M ALSO THE ACTUARY FOR THE STATE EMPLOYEES RETIREMENT SYSTEM IN LOUISIANA, AND THEY HAVE ONE SET OF BENEFITS FOR WHAT THEY CALL THEIR RANK AND FILE MEMBERS. AND THEN THERE'S A DIFFERENT PLAN OF BENEFITS FOR ALL OF THEIR, WHAT THEY CALL THEIR HAZARDOUS DUTY MEMBERS ARE BASICALLY PUBLIC SAFETY AND IT'S THEIR, THE BENEFIT VARY. THERE'S LIKE NINE OTHER PLANS. UM, AND THE BENEFITS OF ALL OF THEM VARY. BUT WHAT THE, [01:40:01] THE TYPE OF THINGS THAT VARY ARE EARLIER RETIREMENT ELIGIBILITY, TYPICALLY AGE 50 OR 55 RATHER THAN 60. UM, BUT AGAIN, THOSE AGES CAN VARY. BUT EARLIER RETIREMENT ELIGIBILITY, BECAUSE YOU ARE, IT, IT'S MORE TAXING, YOU KNOW, OBVIOUSLY TO BE IN A PUBLIC SAFETY POSITION VERSUS, YOU KNOW, SITTING AT A DESK, UM, PUTTING YOURSELF AT RISK EVERY DAY. UM, SO IT CAN BE WHEN YOU'RE ELIGIBLE, THE DIFFERENCE CAN ALSO BE A HIGHER ACCRUAL RATE SO THAT FOR EACH YEAR OF SERVICE THAT YOU WORK, THE BENEFIT IS CALCULATED BASED ON YOUR YEARS OF SERVICE TIMES THE TIMES AN ACCRUAL RATE, TIMES YOUR FINAL AVERAGE COMPENSATION. AND SO PUBLIC SAFETY MEMBERS WILL OFTENTIMES BE OFFERED A HIGHER ACCRUAL RATE SO THAT THEY'RE EARNING A HIGHER BENEFIT FOR THEIR YEARS OF SERVICE. UM, AND, AND IT'S VERY, VERY COMMON TO HAVE A DIFFERENT PLAN OF BENEFITS FOR PUBLIC SAFETY MEMBERS. OKAY. THANK YOU. UM, AND I, AND I DID PULL UP IF YOU WANTED ME TO PROVIDE A LITTLE BIT, JUST, JUST A FEW EXAMPLES. JUST, UH, UH, OKAY. SO, UM, MEMBERS HIRED PRIOR TO, UH, AND I'M SAYING 2015, BUT IT'S, UH, SEPTEMBER 1ST, 2015. SO MEMBERS HIRED PRIOR TO SEPTEMBER 1ST, 2015 ARE ELIGIBLE FOR A TWO AND A HALF PERCENT ACCRUAL RATE AT THE EARLIER OF AGE 55 AND 10 YEARS OF SERVICE, OR THE COMPLETION OF 20 YEARS OF CREDITABLE SERVICE HIRED AFTER 9 1 20 15. THE NON-PUBLIC SAFETY MEMBERS, UH, THEIR AGE ELIGIBILITY INCREASE TO AGE 60 WITH 10 YEARS OF CREDITABLE SERVICE, OR THE COMPLETION OF 20 YEARS OF CREDITABLE SERVICE FOR PUBLIC SAFETY MEMBERS. IT REMAINED THE SAME AT AGE 55, 10 YEARS OF CREDITABLE SERVICE AND OR THE COMPLETION OF 20 YEARS TIME CREDITABLE SERVICE. YES. THANK YOU. HE WAS TALKING TO ME. I'M SORRY. OKAY. OKAY. SO, SO ESSENTIALLY WHAT HAPPENED IN 2015 IS THE BENEFIT REMAINED THE SAME FOR THE EARNING THE TWO POINT A HALF PERCENT FOR THE PUBLIC SAFETY MEMBERS, AND THEY INCREASED THE AGE REQUIREMENT FOR THE NON-PUBLIC SAFETY MEMBERS, BUT THEY DID NOT DO THAT FOR THE PUBLIC SAFETY MEMBERS. IF THE MEMBERS WORK A LITTLE BIT LONGER, THEY CAN BE ELIGIBLE FOR A 3% ACCRUAL RATE. SO MEMBERS HIRED PRIOR TO SEPTEMBER 1ST, 2015, IF THEY COMPLETE 25 YEARS OF CREDITABLE SERVICE, THEY'LL HAVE A 3% ACCRUAL RATE AFTER HIRED AFTER NINE, ONE OF 2015. UM, PUBLIC SAFETY MEMBERS HAVE TO HAVE AGE 50 AND 25 YEARS OF CREDIBLE SERVICE. NON-PUBLIC SAFETY MEMBERS HAVE TO BE AGE 55 AND 25 YEARS OF, UM, CREDIBLE SERVICE TO BE ELIGIBLE FOR THE 3% ACCRUAL. SO, LIKE I SAID, THERE'S DIFFERENT, DIFFERENT ELEMENTS OF THE BENEFIT. AND FOR SPRS IT'S A COMBINATION OF THE ACCRUAL RATE AND, UM, AND THE AGE. ALL RIGHT. THANK YOU MA'AM. KEVIN, COME ON DOWN. AND I PROBABLY SHOULD HAVE PREFERENCE MY STATEMENTS WITH HER WITH, UH, REINFORCING SOMETHING YOU SAID, BUT I THINK IT APPLIES TO, TO BOTH AND, AND ALL THESE CHANGES. AND YOU MENTIONED EARLIER THAT ANY CHANGES MADE NOW WOULD NOT IMPACT ANY CURRENT EMPLOYEES, WOULD ONLY IMPACT EMPLOYEES MOVING FORWARD. CORRECT. WITH THAT BEING SAID, WE DID A, A PAY STUDY, UH, RECENTLY AND THAT PAY STUDY CAME BACK WITH AT LEAST TWO, UM, RECOMMENDATIONS THAT WE FELT WAS, WAS MONUMENTAL AND NEEDED. ONE WAS INCREASING THE PAY, WHICH WE'VE DONE SOME OF THAT. THE OTHER WAS, UM, PENSION REFORM MM-HMM . OR GOING AWAY FROM OUR CURRENT VERSION OF WHAT WE CALL OR WHAT RETIREMENT LOOKS LIKE. UM, DID YOU GUYS, UH, MAKE ANY OF THESE RECOMMENDATIONS WITH THAT IN MIND? AND IF SO, WHAT SPECIFICALLY WERE THEY? WELL, FIRST ON, ON THE, THE PAY ADJUSTMENTS, THAT WAS NOT SOMETHING WE KNEW UNTIL LATER IN THE PROCESS, BUT, UH, I THINK WE DID KIND OF EVALUATE WHAT THE IMPACT OF THAT IS. AND AS YOU MIGHT EXPECT, IT'S A, IT'S A CORRESPONDING INCREASE IN THE, THE LIABILITY FOR THE ACTIVE MEMBERS, THE, THE RETIRED MEMBERS. IT HAS NO IMPACT ON THEM. THOSE WHO, THERE'S A FEW OF THEM WHO SEPARATE FROM SERVICE AND NOT START THE BENEFIT, NO IMPACT ON THOSE. BUT FOR THE ACTIVES, IT IT DOES, IT DOES HAVE AN IMPACT, UH, FOR THE OVERALL, UH, ANALYSIS. IN TERMS OF LOOKING AT THE RETIREMENT PLANS, YOU, WE, WE, WE KIND OF STARTED WITH THE IDEA THAT YOU, WHEN YOU LOOK AT WHAT YOU WANT FROM A RETIREMENT SYSTEM, YOU WANT IT TO BE, UH, YOU WANT IT TO MEET YOUR NEEDS FOR RECRUITING, RETRAIN UH, RECRUITING AND RETAIN RETENTION KEY EMPLOYEES. YOU WANT IT TO BE SOMETHING THAT'S GONNA PROVIDE A MEANINGFUL BENEFIT TO MEET THEIR NEEDS. AND SINCE IF PARTICIPANTS HAVE THIS AS THEIR SOLE RETIREMENT BENEFIT, YOU WANT THIS TO BE A MEANINGFUL BENEFIT THAT'S GOING TO COME TO MEET THEIR INCOME NEEDS. BUT ALSO YOU WANT IT TO BE VIABLE, WHICH MEANS YOU WANT THE COST OF THE PROGRAM TO BE SOMETHING THAT CAN BE SUSTAINABLE BY THE, THE, THE CITY PARISH [01:45:01] LONG TERM. AND SO WITH, WITH THOSE IN MIND, WE STARTED WITH THE IDEA THAT WE WANT SOMETHING THAT'S NOT TOO DRASTICALLY DIFFERENT FROM THE CURRENT SYSTEM. SO THAT WHETHER YOU'RE PUBLIC SAFETY OR NON-PUBLIC SAFETY, IF YOU'RE WORKING RIGHT NEXT TO SOMEONE WHO WAS HIRED FIVE YEARS AGO, YOUR BENEFIT IS AT LEAST SIMILAR TO THE BENEFIT OF YOUR, YOUR COWORKERS. IT'S NOT DRASTICALLY DIFFERENT. SO THAT'S ANOTHER THING WE KEPT IN MIND. UH, AND THAT'S WHY, UH, AND THAT COUPLED WITH THE IDEA THAT WHEN WE LOOK AT THE PLAN, IT'S, IT'S NOT THOSE, THOSE BENEFIT WHAT WE CALL THE BENEFIT MULTIPLIERS OR THE ACCRUAL RATES THAT SHELLY WAS TALKING ABOUT, THE 2.5, 2.75 OR THREE THAT IS, THAT'S CREATING THE CHALLENGE FOR THE PLAN. WE THINK IT'S A LOT OF THESE, THESE ANCILLARY FACTORS THAT ARE DRIVING UP COST AND, AND CREATING SURPRISES IN COST. THINGS LIKE THE OVERTIME, UH, THINGS LIKE THOSE, THE MILITARY SERVICE, THE DROP, THOSE ARE THINGS THAT, THAT THOSE DON'T IMPACT THAT 2.5 OR 3% MULTIPLIER, BUT IT'S ADDING UNEXPECTED COSTS TO THE SYSTEM. SO THOSE WERE REALLY THINGS THAT WE KIND OF TARGETED AS WE THOUGHT THOSE THINGS CAN BE PULLED OUT, KEEPING THE UNDERLYING STRUCTURE OF THE PLAN LARGELY INTACT. NOT GREATLY CHANGING RETIREMENT DATES OR EARLY RETIREMENT PROVISIONS OR BENEFIT MULTIPLIERS, KEEPING IT SIMILAR TO WHAT'S CURRENTLY THERE, BUT REDUCING THE RISK FROM THE SYSTEM. I GOT 40 SECONDS LEFT AND MAYBE ONE OF MY COLLEAGUES WILL DIG A LITTLE BIT DEEPER INTO THIS, BUT AGAIN, ONE OF THE RECOMMENDATIONS WAS PAY INCREASE. WE'VE DONE SOME OF THAT. YOU RECOGNIZE THAT. THE OTHER ONE WAS THAT THEY FELT THAT OUR RETIREMENT BENEFITS WERE TOO HANDSOME AND OUTDATED AND OTHER MUNICIPALITIES HAD STARTED TO GO AWAY FROM THIS. WHAT'S YOUR OPINION ON THAT? UH, I THINK IT'S SOME OF THOSE SAME FACTORS. I THINK THE DROP IS SOMETHING THAT WAS VERY ATTRACTIVE YEARS AGO AND MANY SYSTEMS HAVE, BUT I THINK SYSTEMS ARE SLOWLY TRYING TO MODIFY THOSE JUST AS THE CURRENT PROPOSAL WOULD DO BECAUSE THEY'RE REALIZING THERE'S SURPRISES TO THE COST. SO, UH, TOO HANDSOME. I THINK THERE'S CERTAINLY A, AN ELEMENT OF THAT AND THAT THAT'S SOME OF THE THINGS THAT WE WERE PROPOSING TO BE KIND OF DRAWN DOWN. THANK YOU. SURE. COUNCILMAN HURST? I WANNA FEED OFF WHERE HE LEFT, BUT THEN I'M GONNA LET YOU HAVE A SEAT. OKAY. THE DROP PORTION OF IT IS, I WAS CALLED TOLD, I WAS TOLD THAT PENSIONS DO NOT HAVE COST OF LIVING ADJUSTMENTS. YEP, THAT'S CORRECT. SO THE DROP PROGRAM IS PUT IN PLACE TO ENSURE THAT AS THINGS HAPPEN OVER TIME AND EXPENSES INCREASE LIKE $5 A GALLON GAS MM-HMM . IT DOESN'T AFFECT MY, MY MONTHLY BUDGET BECAUSE I HAVE SAVINGS THAT I CAN PULL FROM OVER THAT LIFE EXPECTANCY SO THAT IT DOESN'T IMPACT MY FAMILY IN A NEGATIVE WAY. MM-HMM . SO REDUCING THE DROP, UM, THE WAY WE'RE TALKING, HOW WOULD THAT AFFECT SOMEBODY BASED ON LIFE EXPECTANCY AND CURRENT EMPLOYEES ENROLLED OR FUTURE EMPLOYEES? YEAH. YEAH, WE HEARD THAT AS WELL, THAT THE DROP WAS VIEWED AS, AS KIND OF A MEANS OF OFFSETTING THE LACK OF A COLA. AND THAT'S ONE OF THE REASONS IN OUR, SOME OF OUR PROPOSALS WE, WE PROPOSED, UH, CURTAILING OR LIMITING THE DROP WITH A SMALL COST OF LIVING ADJUSTMENT SO THAT THAT WAS THERE. UM, SO NOW YOU WOULD ADD COST OF LIVING ADJUSTMENT IN THERE. YES. BUT ONLY WITH THOSE OTHER CHANGES 'CAUSE THE, THE COST OF LIVING ADJUSTMENT RAISES COSTS. CORRECT. SOME OF THOSE OTHER THINGS WOULD HAVE TO OCCUR TO, TO CREATE A COST REDUCTION TO ALLOW YOU TO HAVE THAT. OKAY. ALRIGHT. THANKS. SO THANK YOU SO MUCH. AISHA, CAN YOU COME UP, I HOPE I SAID IT RIGHT. AISHA. AISHA. ALL RIGHT. SO WE'VE HAD A NUMBER OF CONVERSATIONS AND SHELLY, I'VE, I'VE SPOKEN WITH YOU AND ANGIE AND JAY AND EVERYBODY BEFORE. SO, UM, I, I CAME TO YOUR MEETING AND I SPECIFICALLY ASKED FOR THIS STUDY TO BE DONE. YES. AND THE STUDY WAS NOT AROUND. WHAT WOULD A NEW PENSION LOOK LIKE? IT WAS EXPLORING, GETTING AWAY FROM PENSION PLANS IN GENERAL AND MOVING A 4 0 1 KA HYBRID PLAN OR PITCHING ONLY, NOT TO MAKE THE MOVE BUT TO EXPLORE WHAT THAT WOULD LOOK LIKE AND HOW IT WOULD IMPACT THE BOTTOM LINE OF THE CITY PARISH. CORRECT. SO WHEN I TALK TO YOU, ANYBODY CURRENTLY ON A PLAN THAT GOES TO A 401K INCREASE THE UAL, RIGHT? IF, IF WE WERE TO SWITCH SOMEBODY TODAY, BECAUSE THEY WOULD STILL HAVE, IF I REMEMBER CORRECTLY, DEBT TO THE SYSTEM THAT WOULD NOT BE CONTINUOUSLY FUNDED FROM THAT PARTICULAR WELL, SO FIRST ANYONE WHO'S CURRENTLY IN THE PLAN, THEY WOULD HAVE TO HAVE THE OPTION TO EXIT THE PLAN TO GO TO SOMETHING. CORRECT. BUT LET'S SAY IF THEY HAD THE OPTION TO DO IT TO YES. AND THEY MOVED TO A 4 0 1, CORRECT. A 401K, WOULD IT, WOULD IT WOULD INCREASE THE UAL BECAUSE IT'S NOT BEING PAID INTO THE SYSTEM? IT POTENTIALLY, POTENTIALLY, YES. OKAY. GOOD DEAL. SO, UM, WHAT I HEARD TODAY WAS THAT IT'S 9% EMPLOYEE CONTRIBUTION. AM I SAYING THAT CORRECTLY? Y'ALL PUT A LOT OF NUMBERS OUT THERE. NINE AND A HALF PERCENT. NINE AND A HALF PERCENT. SO WHEN I WORK IN THE CORPORATE WORLD, I'M TYPICALLY PUTTING IN AT THREE TO 5% PER YEAR. IF BA WHERE I'M GETTING EMPLOYEE MATCHES, IN MOST CASES I CAN PUT AS MUCH AS I WANNA PUT, BUT THREE TO 5% EMPLOYEE MATCHES. MM-HMM . MY CONCERN IS THAT WE HAVE BROKE EMPLOYEES THAT'S GONNA RETIRE, EVEN BROKER, IF THAT'S A WORD. RIGHT. [01:50:01] SO IF THEY'RE ALREADY POOR BASED ON THE LIMITED WAGES AND, AND OUR EMPLOYEES ARE IN THE ALICE POPULATION WHILE THEY'RE EMPLOYED, WE'RE, WE'RE, WE'RE REMOVING PART OF THE DROP MONEY, WHICH IS THAT CHUNK OF MONEY THAT THEY GET WHEN THEY RETIRE THAT THEY'VE NEVER SEEN IN THEIR LIFETIME BEFORE. AND THEY'RE GONNA GO FROM EIGHT, POTENTIALLY 85% TO 80% BASED ON THEIR CURRENT EMPLOYMENT RATE. SO WE'RE MAKING THEM EVEN POORER AT RETIREMENT THAN THEY WERE WHEN THEY WORKED FOR THE CITY PARISH. AM I, AM I MISUNDERSTANDING THIS? NO. HOWEVER, SO THE, THE DROP IS NOT TYPICALLY USED AS A COLA. IT IS USED AS WHATEVER IT IS. IT'S MONEY THAT, THAT THEY'VE NEVER GOTTEN BEFORE. RIGHT. IT'S A CHUNK OF MONEY SO THEY CAN RETIRE, PAY LOW DEBTS OFF SO THAT THEY CAN ACTUALLY NOT ABSOLUTELY HAVE TO STRESS. RIGHT. WHATEVER YOU WANNA CALL IT. YES. SO THE WAY, SO CHANGING IT FROM A FIVE YEAR DROP TO A THREE YEAR DROP, THE THREE YEAR DROP THEN ALLOWS THEM TO WORK PAST THAT. SO YES, THEY LOSE OUT ON TWO YEARS OF DROP, BUT THEY CAN STILL CONTINUE TO WORK. AND THE REASON THAT THAT NOW SINCE THE PAY STUDY HAS OCCURRED AND NOW THE PAY SCALES HAVE CHANGED, IS NOW YOU HAVE A LARGE PORTION OF PEOPLE WHO ARE NOT TOPPED OUT ANYMORE. ANGIE COME TO THE MIC WHILE SHE'S TALKING. SO YOU NOW HAVE PEOPLE WHO ARE NOT TO OUT, THEY MAY SAY, OH, YOU KNOW WHAT? I CAN STILL HAVE STEP INCREASES IF I DO A THREE YEAR DROP INSTEAD OF A FIVE YEAR DROP AND HAVE TO TERMINATE. OKAY, GREAT. THANKS. STAY THERE ANGIE, COME TO THE MIC 'CAUSE YOU WON'T HEAR AT THE TIME. WHAT'S THE SPECIFIC ASK TO LOOK AT? 401K, 401K HYBRID AND THEN PENSION ONLY. YES SIR. THAT'S MY DID Y'ALL DO THAT? UNDERSTANDING? UH, DID THE CONSULTANT DO THAT? YES. I DON'T DID Y'ALL DO THAT? JAY, COME TO THE MIC. COME ON. ARE Y'ALL ALL Y'ALL IN THE BOARD MEETING? EVERYBODY WAS THERE. COME TO THE MIC. I DON'T KNOW. YEAH, BECAUSE AT THE END OF THE DAY, THE ONLY WAY TO GET RID OF THE DEBT LONG TERM IS TO CHANGE THE ENTIRE STRUCTURE OF THE PLAN, WHICH IS WHAT WAS REQUESTED TO BE ON A, TO, TO GET THE ACT, THE NEW ACTUARY. WE SPENT MONEY, YOU WANT JUDGE TIME? YEP, YEP. WE SPENT MONEY ON AN ACTUARY TO DO A REPORT, NOT TO DO IT YOUR WAY, BUT TO DO IT THE WAY THAT WE ASKED TO DO IT. YEAH. AND WE, WE LOOKED AT THAT, WE LOOKED AT A 401K PLAN OR ANY, SOME KIND OF DEFINED CONTRIBUTION PLAN. THE PROBLEM IS, IS THAT UNDER THE AGREEMENT THAT EXCLUDES PARTICIPANTS FROM SOCIAL SECURITY, YOU HAVE TO HAVE A PENSION TO BE EXEMPT FROM SOCIAL SECURITY. SO THAT MEANS IF YOU COME INTO SOCIAL SECURITY, THEN IMMEDIATELY THE, THE 6% THAT THE CITY PARISH IS CONTRIBUTING TO THE PENSION, IT'S REPLACED BY 6.2% TO CELL SECURITY. SO YOU'RE ALREADY PUTTING MORE IN AND YOU HAVEN'T GIVEN ANY BENEFIT OTHER THAN SOCIAL SECURITY YET. UH, SO LET ME ASK YOU THIS, BUT AT THE 401K RATE, OUR, OUR, OUR EMPLOYEE CONTRIBUTION GOES DOWN 'CAUSE WE CAN MATCH UP TO THREE TO 5% AND THEY CAN PUT WHATEVER THEY WANT IN THERE. SO LONG TERM WE MAY STILL GAIN BECAUSE THE UAL GOES DOWN WHILE THE SOCIAL SECURITY GOES UP. AM I SAYING THAT WRONG? CORRECT. YEAH. THE UAL NOTHING WE DO HERE IS REALLY GONNA CHANGE THAT UAL IT, IT'S ALREADY THERE AND YOU'RE GONNA HAVE TO PAY IT DOWN OVER TIME TO TO, TO REDUCE IT. I JUST MEAN OVER TIME. RIGHT, RIGHT. GOING 401K WOULD PROBABLY HAPPEN FASTER THAN CONTINUING A PENSION PROGRAM. YEAH. THE THE PROBLEM IS THOUGH, YOU'RE, YOU'RE GONNA HAVE TO COME UP WITH NEW MONEY TO DO THAT BECAUSE YOU'RE GONNA BE PUTTING IN MORE TO SOCIAL SECURITY THAN YOU'RE ALREADY DOING. AND IF YOU'RE DOING ANY KIND OF MATCH OR EMPLOYER CONTRIBUTION, THAT'S ADDITIONAL MONEY THAT IS GONNA REDUCE THE, WHAT YOU HAVE AVAILABLE TO PAY DOWN THE . SO IS THERE, IS THERE AN AGREEMENT THAT CAN BE PUT IN PLACE THAT SAYS FOR NEW EMPLOYEES WE WILL DO SOCIAL SECURITY OR IS IT ALL OR NONE? UH, YOU, YOU, THAT MAY BE MORE OF A LEGAL QUESTION. UH, MY MY POINT IS, THESE THINGS HAVE TO BE EXPLORED. THAT'S WHAT Y'ALL GET PAID FOR. RIGHT? UH, THE, THE REASON WE KIND OF VIEWED DEFINED CONTRIBUTION PLANS AS A NON-STARTER IS IT IT DOESN'T DO ANYTHING TO YOUR CURRENT UNFUNDED ACCRUED LIABILITY. AND IT INCREASES YOUR COST WELL BEFORE I, AND IT REDUCES THE BENEFITS THAT PARTICIPANTS ARE GONNA HAVE. SO IT'S, IT'S LOSE ONE ASK QUESTION AFTER THIS, I'M GONNA BE DONE WITH YOU, BUT BEFORE I VOTE ON ANYTHING, AND I HOPE MY COLLEAGUES, WE WANNA LOOK AT FULL REFORM OPTIONS, NOT THE ONES YOU THINK ARE GOOD. 'CAUSE THAT'S NOT WHAT WE ASK FOR. AND I MEAN, SOME OF MY COLLEAGUES HAVE COME AFTER ME WITH THE SAME QUESTIONS. YEAH. AND, AND WE CAN, WE CAN PROVIDE MORE DETAIL AROUND WHY THE, THE DEFINED CONTRIBUTION PLAN IS, IS A NON-STARTER, UH, BUT, UH, GIVEN, GIVEN THE FACT THAT IT'S GONNA INCREASE YOUR COST AND REDUCE BENEFITS, UH, JUST TO PROVIDE THE PROTECTION THAT SOCIAL SECURITY HAS, UH, BUT THAT'S A LOWER PROTECTION THAN WHAT YOU'RE CURRENTLY GIVING LOWER BENEFITS THAN WHAT YOU'RE CURRENTLY GIVING TO PARTICIPANTS. SO, BUT IT ALSO HELPS BALANCE TO WHERE THE CITY PARISH HAS LESS DEBT AND THE EMPLOYER STILL HAS A GOOD RETIREMENT. Y YEAH. WELL, I'M, I'M GONNA PAUSE YOU ON MY TIME. THANK YOU SO MUCH, OFFICER. SURE. UM, SHELLY, COME TO THE MIC PLEASE AND, AND, UH, AISHA, AH, MAN, I'M MESSING IT UP EVERY TIME. AISHA STAND THERE WITH HER. SO WE HAD QUESTIONS ABOUT ST. GEORGE AND YOU TOLD ME TO WAIT UNTIL THE 27TH, I BELIEVE IT WAS, TILL THE REPORT CAME OUT, WHICH WAS ON A THURSDAY AND THE MEETING WAS ON A WEDNESDAY. SO WE MOVED IT BACK. SO CAN WE TALK ABOUT THE UAL BASED [01:55:01] ON THE NUMBERS THAT WE PUT FROM ST. GEORGE'S IN CORPORATION AND WHAT THEY WOULD OWE US? AND CAN YOU GIVE US THE STATUS OF THAT PLEASE? SO THOSE NUMBERS HAVEN'T BEEN FINALIZED BECAUSE WE'RE WAITING ON THE AUDIT TO BE FINALIZED. ONCE THE, THE AUDIT OF SPRS AND CITY OF BATON ROUGE IS FINAL, WHICH I UNDERSTAND WILL, WILL OCCUR AT THE END OF THE MONTH. UM, THEN WE'RE GONNA GET A PERCENTAGE FROM THE CITY PARISH FINANCE OFFICE THAT REPRESENTS WHAT PERCENTAGE OF TAX REVENUE HAS BEEN LOST BECAUSE OF THE CREATION OF CITY OF ST. GEORGE. SO IN A SENSE, WHAT'S THE PERCENTAGE OF CONTRIBUTION EFFORT, THAT'S KIND OF THE TERM THAT'S USED. UM, WHEN YOU'RE DIVIDING OUT A LIABILITY, WHAT W WHAT WAS THEIR CONTRIBUTION EFFORT IF THEY HAD NOT PULLED OUT VERSUS UH, NOW THAT THEY'VE PULLED OUT, WHAT ARE THEY NOT PAYING INTO THE SYSTEM? SO ONCE THAT PERCENTAGE IS DETERMINED, THEN WE'LL PROVIDE THAT PERCENTAGE TO THE CITY OF ST. GEORGE AND ALSO THAT PERCENTAGE WILL BE APPLIED TO THE UAL FOR THE VALUATION THAT WAS JUST COMPLETED, PRESENTED TO THE BOARD AND ADOPTED. THAT WAS THE BASIS FOR THE CONTRIBUTION RATES THAT I GAVE YOU. UM, THAT WILL DETERMINE THE WITHDRAWAL LIABILITY FOR CITY OF ST. GEORGE. AND THAT WILL BE PUT ON, UM, A 15 YEAR MONTHLY PAYMENT PLAN FOR THEM TO MAKE THE PAYMENTS INTO SPRS BECAUSE THAT, THAT'S A LONG ANSWER. I GOT 48 SECONDS. OKAY. SO, ALRIGHT, AND I'LL LET YOU, WE'LL, WE'LL KNOW IN A, WE'LL KNOW IN A LITTLE OVER A WEEK. A WEEK, SO, BUT THAT'S A SHORT ANSWER ACTUALLY PUT ON THE, UM, AGENDA, A REPORT SPECIFICALLY ON ST. GEORGE RETIREMENT. THANK YOU. NO, NO, YOU'RE GOOD. UM, AND THE OTHER PART I TALKED ABOUT 401K WISE WAS BECAUSE THE ONLY PEOPLE THAT REALLY BENEFIT FROM THEIR RETIREMENT AT THE LEVELS AT A HIGH LEVEL CITY PARISH IS PUBLIC SAFETY. AND I'M NOT MAD AT WHAT THEY DO. I WANT, I DON'T WANT THEM TO RETIRE POOR, BUT THEY WORK A MILLION HOURS THE LAST THREE YEARS THEY RETIRE AND THEY DO WELL, 8,000 SOMETHING THOUSAND DOLLARS A YEAR, BUT THE AVERAGE EMPLOYEE DOES NOT HAVE THE ABILITY TO DO THAT. SO IF THEY'RE MAKING $50,000 A YEAR AND THEY RETIRE AT 85%, THAT'S PENNIES ON A DOLLAR. THAT'S, THAT'S, THAT'S DIRT POOR. AND I'M, I'M ABOUT TO CLOSE IN A COUPLE IN A COUPLE YEARS, WHICH IS WHY I WANTED TO EXPLORE THE 401K, WHICH TYPICALLY GIVES YOU 10 TO 12% RETURN ON INVESTMENT OVER A 30 YEAR PERIOD. SO I, I KIND OF KNOW MY NUMBERS A LITTLE BIT AND I HOPE TO SEE THAT FROM YOU'ALL. THANK YOU. COUNCILMAN HUDSON. I THINK, UH, MS. JOHNSON, YOU'RE PROBABLY THE BEST ONE FOR MY QUESTIONS. UM, I I'M CURIOUS, IS THERE ANY TYPE OF PROJECTION ON GROWTH OF THE UAL OR DECLINE OF GROWTH IN THE UAL BASED ON THE RECOMMENDATIONS THAT Y'ALL HAVE MADE? YES, SIR. UM, SO ONE THING THAT WE, WE HAVEN'T TALKED ABOUT YET, PENSION FUNDING IS VERY COMPLICATED. SO I TALKED ABOUT THE NORMAL COSTS. THERE'S ALSO THE, THE PAYMENT ON THE UAL AND BEFORE THIS YEAR, THE UAL WAS SET ON A PAYMENT PLAN WHERE THE PAYMENTS INCREASED. IT WAS DESIGNED FOR THE PAYMENTS TO INCREASE ANNUALLY AT A RATE OF 2.5%. AND I COULD GO INTO THE REASONS FOR IT, THERE'S SOME SOUND REASONS FOR IT, BUT JUST IN THE INTEREST OF TIME, I'LL POINT OUT THAT WE BROUGHT A PROPOSAL TO THE BOARD TO CHANGE THE PAYMENT STRUCTURE SO THAT IT'S NOW LEVEL PAYMENTS AND WE'VE EXTENDED THE TERM SLIGHTLY TO 25 YEARS AND WE'VE CHANGED IT FROM AN OPEN AMORTIZATION TO A CLOSED AMORTIZATION. SO THE, THE, THE SH SHORT OF WHAT THAT MEANS IS ESSENTIALLY WE NO LONGER EXPECT THE PAYMENTS AUTOMATICALLY TO INCREASE EVERY YEAR BECAUSE OF THIS NEW PAYMENT THAT THEY, PAYMENT PLAN THAT THEY'VE ADOPTED. IT WILL TAKE A LITTLE BIT LONGER TO PAY IT OFF IN A SENSE BEFORE WE NEVER, WE NEVER TRULY WOULD'VE PAID IT OFF BECAUSE IT'S AN, EVERY YEAR IT'S AN OPEN AMORTIZATION, WHICH MEANS EVERY YEAR YOU RE AMORTIZE IT. UM, AND SO YOU NEVER DO TRULY PAY IT OFF. WHAT WE RECOMMENDED AND THE BOARD ADOPTED IS A 25 YEAR, ULTIMATELY A CLOSED PLAN. SO THE UAL WILL HAVE LEVEL PAYMENTS AND WILL BE PAID OFF IN 25 YEARS. SO THAT RESULTS IN A SLIGHTLY HIGHER PAYMENT IN THE SHORT TERM, BUT ULTIMATELY IT WILL PAY OFF THE UAL AND WE'LL NO LONGER HAVE THIS EVER INCREASING EXPECTATION FOR THE UAL TO INCREASE. IT CAN STILL CHANGE, LIKE FOR EXAMPLE, WHEN WE HAVE YEARS OF INVESTMENT LOSSES, SURE THE UAL CAN STILL GO UP AND THE PAYMENT CAN STILL GO UP, BUT IT WON'T BE BY DESIGN AND LIKE BAKED INTO THE PLAN. I GOTCHA. OKAY. UM, HAS THERE BEEN ANY DISCUSSION, UH, ON GOING UP ON THE EMPLOYEE CONTRIBUTION RATE? THERE HAS BEEN SOME DISCUSSION ON THAT. UM, THAT'S REALLY A LEGAL QUESTION AS TO WHETHER OR NOT, I'M NOT SURE IF YOU'RE ASKING ONLY ABOUT [02:00:01] NEW HIRES OR EXISTING MEMBERS. BOTH REALLY. UM, ONE THING THAT THE CALCULATION OF THIS SPLIT RATE SHOWED IS THAT THE EMPLOYEES ARE PRETTY NON-PUBLIC SAFETY MEMBERS ARE PRETTY MUCH PAYING FOR THE FULL COST OF THEIR BENEFIT. SO IF YOU GO BACK TO THE, THE LETTER, SO IT WOULD, IT WOULDN'T MAKE SENSE FOR TO GO UP ON THEIRS. IT WOULDN'T MAKE SENSE TO GO UP ON THEIRS. YOU'D HAVE THEM PAYING MORE THAN THE COST OF THE BENEFIT THAT THEY'RE RECEIVING. OKAY. UM, PUBLIC SAFETY THERE, THERE WOULD BE SOME ROOM TO INCREASE THEIR CONTRIBUTION RATE AND UM, YOU KNOW, I CERTAINLY CAN'T SPEAK FOR THEM, BUT I KNOW THAT, THAT THEY WERE ADAMANT AT KEEPING THEIR BENEFITS AT THE LEVEL THAT THEY'RE AT WITH, WITH SOME EXCEPTIONS AS I SHOULD DESCRIBED. UM, AND MAY BE WILLING TO CONSIDER A HIGHER CONTRIBUTION RATE IN ORDER TO KEEP THOSE BENEFITS. UM, BUT I NEED TO POINT OUT THAT THAT WOULD BE FOR, UM, NEW HIRES TO DO IT FOR EXISTING MEMBERS WOULD BE, THAT'S A LEGAL DISCUSSION. GOTCHA. YOU WANNA SAY SOMETHING TO THAT REGARD? UM, WELL I JUST, I WANTED TO MAKE SURE I, BECAUSE IT IS A LEGAL QUESTION THAT SHELLY KIND OF DIDN'T DIVE INTO AN AREA THAT I KNOW SHE'S NOT VERY COMFORTABLE IN. UM, BUT I, AS AN ATTORNEY MYSELF AND HAVING LAURA GALE HERE, WE CAN ABSOLUTELY ANSWER SOME OF THOSE QUESTIONS AND KIND OF FLUSH SOME OF THAT OUT IF YOU'D LIKE. OKAY. UM, LAURA GALE, I'LL HAVE YOU COME UP PLEASE. UM, AND SOME OF LAURA GALE SULLIVAN, I'M OUTSIDE COUNSEL FOR SPRS. UM, AND I'VE WORKED WITH A NUMBER OF OTHER RETIREMENT SYSTEMS AND BEEN WORKING WITH PUBLIC RETIREMENT FOR OVER 20 YEARS HERE IN THE STATE. UM, WE HAD AN OPPORTUNITY TO MEET WITH SOME OF Y'ALL. I THINK THAT EVERYBODY WAS GIVEN THE OPPORTUNITY TO ASK SOME QUESTIONS AHEAD OF THIS, AND SOME FOLKS HAD ASKED ABOUT MAKING CHANGES FOR ACTIVES. UM, AND WHAT WE TOLD YOU WAS, YOU KNOW, WE DON'T PROVIDE LEGAL ADVICE. Y'ALL HAVE YOUR OWN LEGAL ADVISORS AND YOU SHOULD ASK THEIR LEGAL OPINION. BUT I'LL READ TO YOU FROM THE PLAN OF GOVERNMENT, THE PENSION RIGHTS AND BENEFITS OF EMPLOYEES ENROLLED AS MEMBERS OF THE RETIREMENT SYSTEM SHALL BE DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF THE PLAN OF GOVERNMENT, TOGETHER WITH THE PROVISIONS OF THE RETIREMENT ORDINANCES ENACT UNDER THE AUTHORITY OF THIS SECTION THAT ARE IN EFFECT ON THE DATE THAT SUCH EMPLOYEES ENROLLED AS MEMBERS. THE COUNCIL SHALL NOT DIMINISH OR IMPAIR THOSE RIGHTS AND BENEFITS IN ANY WAY. SO Y'ALL CAN ASK YOUR LEGAL COUNSEL ABOUT MAKING CHANGES UNDER THE PLAN OF GOVERNMENT FOR ACTIVES. BUT THAT IS WHAT I WOULD POINT Y'ALL TO. UM, YEAH, THAT ANSWER YOUR QUESTION, UH, MAYBE IT'S MY POINT OF ORDER REAL QUICK. ANYBODY THAT'S HAVING AN OUTSIDE CONVERSATION, CAN Y'ALL PLEASE STEP OUTSIDE? THIS IS DIFFICULT TO UNDERSTAND AND TO CONCENTRATE ON, AND I'M NOT HEARING ANYTHING THAT THE SPEAKERS ARE SAYING. PLEASE, THANK YOU. UH, UH OKAY. TALK TO ME ABOUT NEW HIRES GOING UP ON THE RIG FOR NEW HIRES THEN WHAT, WHAT IS YOUR THOUGHTS? YOU MAKE, YOU CAN MAKE CHANGES FOR NEW HIRES, UM, AS YOU DETERMINE, BECAUSE THE PLAN OF GOVERNMENT DOES AUTHORIZE THE COUNCIL TO SET UP THIS SYSTEM AND DETERMINE THE BENEFITS TO DETERMINE WHEN, UM, THE VESTING PROVISIONS AND WHAT THOSE ACCRUALS LOOK LIKE. UM, BUT AS, AS YOU'VE ALREADY HEARD, WHEN THE BOARD ASKED THE ACTUARY TO DETERMINE A SPLIT RATE, WHAT WAS FOUND IS THAT FOR NON-PUBLIC SAFETY, AND THIS IS LUMPING EVERYBODY FROM BEFORE 2015, WHO HAS A LITTLE BIT BETTER BENEFIT NON-PUBLIC SAFETY WITH THE NEW HIRES AFTER 2015 THAT HAVE A LITTLE LESS RICH BENEFIT. YEAH. THAT THEY'RE ALREADY, THOSE TWO LUMPED TOGETHER BEING PAID FOR BOTH GROUPS OF EMPLOYEES PRE AND POST 2015 ARE CONTRIBUTING NINE AND HALF PERCENT OF PAY. THE AMOUNT THAT THE EMPLOYER PAYS THAT FUNDS THIS YEAR'S BENEFIT ACCRUAL FOR THOSE PEOPLE IS 0.8% OF PAY. THAT'S WHY YOU HEARD THE ACTUARY SAY THAT THE NON-PUBLIC SAFETY FOLKS ARE JUST ABOUT FUNDING THEIR OWN BENEFITS. RIGHT. OKAY. SO THE BULK OF THE COST IS THE UAL. THE UAL WAS THE PAYMENTS, THE, THE SCHEDULE OF PAYMENTS, THE AMORTIZATION OF PAYMENTS. IT WAS GROWING BY DESIGN. IT WASN'T NECESSARILY GROWING BECAUSE ANY CHOICES WERE MADE EXCEPT THAT THE AMORTIZATION WAS GONNA BE INCREASING, WAS GONNA BE AN OPEN SCHEDULE. THOSE CHANGES, UM, CHANGES TO MAKE IT CLOSED, TO TRY TO GET TO A DATE. WHEN WE EXPECT THE UAL THAT EXISTS TODAY TO BE FULLY FUNDED, THE BOARD HAS PUT THOSE IN PLACE FOR THE VALUATION, UM, THAT THE PAYMENTS WILL START IN JANUARY. SO THOSE CHANGES ARE BEING MADE. THE SINS OF THE PAST ARE BEING ATONED FOR AT THIS POINT. BUT MOST THE BENEFIT, [02:05:01] THERE ARE SOME INTERESTING PROVISIONS I'VE SEEN, UM, IN THE SERS THAT I HAVEN'T SEEN IN OTHER PLACES, AND SHELLY WOULD TELL YOU THE SAME THING, BUT THE BENEFIT DOES NOT GET THAT MUCH DIFFERENT FROM THE OTHER STATE AND STATEWIDE SYSTEMS THAT WE'VE SEEN. GOTCHA. AS FAR AS THE EMPLOYEE AND CON, THAT CONTRIBUTION RATE IS SIMILAR AS WELL, THE EMPLOYEE CONTRIBUTION RATE, THE, THE RETIREMENT SYSTEMS THAT HAVE 9.5 OR HIGHER FIREFIGHTERS RETIREMENT SYSTEM, UM, THE JUDGES PLAN WHERE THEY GET A THREE POINT HALF PERCENT ACCRUAL RATE AND THEY INVEST IMMEDIATELY. UM, THE LASERS HAZARDOUS DUTY SERVICE, THE STATEWIDE POLICE SYSTEM AND THE SHERIFFS. GOTCHA. AND THE STATE POLICE HAVE NINE AND A HALF. SO THE, THE, THERE ARE SOME OF THE NON-PUBLIC SAFETY SYSTEMS THAT HAVE, THE BOARD HAS A LITTLE BIT OF ABILITY, SOME FLEXIBILITY ON MAKING THAT CONTRIBUTION RATE FOR THE EMPLOYEES A LITTLE BIT HIGHER. OKAY. Y'ALL HAVE SOMETHING IN YOUR STATUTE THAT PUSHES THE EMPLOYEE CONTRIBUTION UP AS THE OVERALL CONTRIBUTION GOES UP ALREADY. GOTCHA. BUT MOST EMPLOYEES THAT ARE PAYING NINE AND A HALF ARE GETTING PUBLIC SAFETY BENEFITS IN OTHER SYSTEMS. GOTCHA. THANK YOU. I THINK THAT, THAT ADEQUATELY ANSWERS MY QUESTION. I APPRECIATE YOU. UM, ONE MORE QUESTION FOR MR. SULLIVAN. UM, AND THIS IS MORE OF A CONCEPTUAL QUESTION, I GUESS, UM, AS QUICKLY AS YOU CAN, I HAVE A MINUTE AND 30 LEFT MM-HMM . BUT, UM, WALK ME AGAIN THROUGH THE JUSTIFICATION FOR NOT GOING FOR DEFINED CONTRIBUTION PLAN. THE REASON WHY I'M ASKING IS BECAUSE AS I READ YOUR, YOUR PROPOSAL, UM, THE, THE OVERALL THEME HERE IS TO MITIGATE FUTURE RISK. MM-HMM . AND A DEFINED CONTRIBUTION PLAN SORT OF ULTIMATELY IS THE, THE BEST WAY TO MITIGATE FUTURE RISK FOR A PLAN. I I, AS I SEE IT. SO WALK ME THROUGH WHY WE WOULD NOT DO THAT. YEAH. AND AT FIRST I'D SAY IT MITIGATE RISKS FOR THE CITY PARISH. IT TRANSFERS MOST OF THAT RISK TO THE INDIVIDUAL PARTICIPANTS. UH, THE, THE PRIMARY REASON DEFINED CONTRIBUTION IS PROBLEMATIC IS YOU CANNOT HAVE DEFINED CONTRIBUTION ALONE. YOU HAVE TO HAVE EITHER STILL A PENSION OR SOCIAL SECURITY. THAT'S OUR UNDERSTANDING OF HOW THE AGREEMENTS THAT ALLOW YOU TO BE EXEMPT FROM SOCIAL SECURITY WORK. NOW, THAT MEANS THAT IF YOU DO SOCIAL SECURITY, THERE'S A NEW 12.4% THAT HAS TO COME FROM SOMEWHERE THAT HAS NOT BEEN THERE BEFORE. THAT'S 6.2 FROM THE MEMBERS, 6.2 FROM THE CITY PARISH. SO THAT'S ALREADY MORE THAN WHAT YOU'RE PUTTING IN FOR YOUR, UH, FOR ON AVERAGE FOR YOUR PARTICIPANTS. SO YOU'VE ALREADY, YOU'VE, YOU'VE ALREADY REPLACED THE PENSION WITH SOCIAL SECURITY AND YOU HAVEN'T GIVEN THEM A DEFINED CONTRIBUTION AMOUNT YET. IT IN THAT THERE WOULD BE NO REQUIREMENT FOR US TO PAY A UAL FOR THEM THOUGH, RIGHT? WELL, THERE WOULD BE NO NEW UAL CRE, UUAL CREATED, BUT THE OLD UAL IS STILL THERE. OKAY. AND IT'S STILL GONNA BE THERE UNTIL IT GETS PAID DOWN EITHER THROUGH GREAT INVESTMENT RETURN OR HIGHER CONTRIBUTIONS. ALRIGHT. THANK YOU. I APPRECIATE YOU COMFORTABLE MOR. SO WHENEVER WE'RE TALKING ABOUT THESE CHANGES, THEY, I JUST WANNA BE ABSOLUTELY ABUNDANTLY CLEAR THEY'RE ONLY GOING TO IMPACT THE NEW EMPLOYEE. CORRECT. ALRIGHT. AND SO WHEN WE'RE TALKING ABOUT NEW EMPLOYEE, WE TALKED ABOUT WHAT THAT EMPLOYEE WOULD LOOK LIKE COMING IN AND YOU DISCUSSED RETENTION AND RETAINING THESE EMPLOYEES. UM, DID YOU AS, AS A CONSULTANT, AS YOUR FIRM LOOKS AT DIFFERENT, UM, TYPES OF RETIREMENT PLANS FOR DIFFERENT TYPES OF MUNICIPALITIES, IS ARE YOU COMMONLY SEEING THAT A NEW EMPLOYEE GRADUATING FROM COLLEGE IS SPENDING 20 TO 30 YEARS IN A, IN A POSITION WITH A CITY PARISH OR A MUNICIPAL JOB? NO, WE DON'T SEE THAT. THERE'S MUCH MORE MOBILITY. UH, SO, SO PEOPLE ARE CHANGING JOBS. UH, YOUR CURRENT ASSUMPTIONS IN YOUR, FOR YOUR NON-PUBLIC SAFETY GROUP ASSUMES BASICALLY A 50% TURNOVER IN 10 YEARS. SO THAT, SO HALF THE PEOPLE YOU HIRE ARE, ARE GONE BEFORE THEY'RE EVER INVESTED. THE PLAN THAT WE'RE LOOKING AT CURRENTLY, THE PERSON THAT IS IN, IS CONTRIBUTING TO THIS PLAN AS A NEW, NEW GRAD, NEW EMPLOYEE. WHAT BENEFIT DO THEY HAVE IF THEY LEAVE FIVE YEARS IN? THEY JUST GET THEIR EMPLOYEE CONTRIBUTIONS BACK. AND WHAT BENEFIT DO THEY HAVE? IF THEY LEAVE 10 YEARS IN, UH, 10 YEARS IN, THEN THEY HAVE A VESTED BENEFIT IN THE PLAN AND THEY WAIT UNTIL THEIR NORMAL RETIREMENT AGE TO RECEIVE THAT BENEFIT. AND WHAT IS THEIR VESTED BENEFIT? IT'S GONNA DEPEND ON THEIR, THEIR SERVICE, UH, ACTUAL YEARS OF SERVICE AND COMPENSATION FOR THEIR FIVE YEAR AVERAGE LEADING UP TO WHEN THEY LEFT EMPLOYMENT. BUT AT ANY RATE, FROM YEAR ZERO TO YEAR NINE, THE BENEFIT'S NOT PORTABLE. CORRECT? CORRECT. THE BENEFIT'S NOT PORTABLE. YEP. ALRIGHT. NEXT, WHENEVER WE'RE LOOKING AT, AND I THINK THAT WE SAID IN LINE WITH OUR PEERS SEVERAL TIMES AMONGST THE CONVERSATIONS THAT WE HAD AND THE REPORT, WHEN WE'RE TALKING ABOUT IN LINE WITH OUR PEERS IN, WHENEVER YOU'RE LOOKING AT OTHER MUNICIPALITIES ABOUT OUR SIZE OR SMALLER, WHAT IS THEIR CURRENT [02:10:01] CONTRIBUTION RATIO? I'D, I'D HAVE TO LOOK AND GET GOOD DATA ON THAT. SO WOULD 48.8% BE HIGH OR LOW FOR A TOTAL CONTRIBUTION RATE THAT'S COMPARED TO NATIONAL AVERAGES? THAT'S HIGH. WHAT WOULD THE NATIONAL AVERAGE BE? I WOULD SAY IT'S CLOSER TO 20 TO 25% FOR THE EMPLOYER CONTRIBUTION. ARE WE TAKING THAT INTO ACCOUNT WITH THE NEW EMPLOYEES? UH, YES. AND THEN ANOTHER KEY, UH, THING TO FACTOR IN THERE, YOU'RE NOT PARTICIPATING IN SOCIAL SECURITY. MANY SYSTEMS THAT HAVE CONTRIBUTION RATES AROUND 2020 5% DO STILL PARTICIPATE IN IN SOCIAL SECURITY. SO THEY'RE CONTRIBUTING 6.2% IN ADDITION TO THOSE. SO OTHER MUNICIPALITIES ARE CONTRIBUTING TO SOCIAL SECURITY, UH, MORE ARE THAN ARE NOT YES. MORE ARE THAN ARE NOT. OKAY. YEAH. AND, BUT WHEN THEY'RE DOING THAT, THEIR RATE IS STILL LESS THAN THE 48.8%. SURE. ABSOLUTELY. AND IT'S STILL LESS THAN THE 34.5% Y YES. YES. THAT AVERAGE, RIGHT? YES. YEAH. OKAY. AND WHENEVER WE'RE LOOKING AT THE POTENTIAL CHANGES THAT WE'RE MAKING TO THE PLAN, AND WE'RE TALKING ABOUT THE DROP PROGRAM, HOW IMPACTFUL IS A DROP PROGRAM AND CHANGES TO THAT PARTICULAR PROGRAM GONNA BE FOR EMPLOYEES 20 TO 30 YEARS FROM NOW THAT DON'T WHEN WE'RE SAYING WE'RE SEEING GENERATIONALLY EMPLOYEES NOT STAYING IN PHYSICIANS THAT LONG AND MOVING TO OTHER JOBS? R RIGHT. IT'S, I I, I ACTUALLY MADE THIS COMMENT BEFORE I CAME OVER FOR THE MEETING. I, I DOUBT IF YOU'VE HIRED ANYONE IN THE LAST 10 YEARS WHO, UH, WHEN THEY WERE HIRED AS A YOUNG 20, 25-YEAR-OLD SAID, I'M REALLY EXCITED ABOUT THE DROP. RIGHT. IT'S JUST NOT SOMETHING THAT'S ON THE RADAR. THEY'RE PROBABLY NOT EXCITED ABOUT THE PENSION EITHER, BECAUSE WHEN I WAS 20 OR 25 YEARS OLD, I WASN'T VERY EXCITED ABOUT A PENSIONS, BUT I LIVE AND DIE BY PENSIONS. NOW THAT'S JUST REALITY THAT YOUR, YOUR INTEREST AND ENTHUSIASM FOR PENSION BENEFITS DOES THIS. AS YOU GET OLDER, IT INCREASES EXPONENTIALLY. SO WHILE THE DROP IS NOT VERY INTERESTING TO ANYONE UNDER THE AGE OF 35, PROBABLY EVERYONE OVER THE AGE OF 50 IS KEENLY INTERESTED IN THE DROP. GOT IT. ALRIGHT. UM, JUST TO CLEAR UP SOME LANGUAGE, WHENEVER WE WERE LOOKING AT YOUR, UM, YOUR PRESENTATION AND WE'RE DOING SUMMARY OF OBSERVATIONS, OVER 60% OF THE CURRENT NEW BENEFIT IS PROVIDED BY MEMBER CONTRIBUTIONS. THAT'S CORRECT. THAT THAT'S CORRECT. AND THAT IS THE AGGREGATE. SO THAT THAT INCLUDES BOTH PUBLIC SAFETY AND NON-PUBLIC SAFETY. IF WE BREAK THE, AND SO WHENEVER WE'RE TALKING ABOUT MEMBER, WHENEVER WE'RE, EXCUSE ME GUYS, SORRY, I I'M TRYING TO HEAR WHENEVER WE'RE TALKING ABOUT MEMBER CONTRIBUTIONS, IS THERE A FLUCTUATION IN EMPLOYMENT, UM, PRIVATIZATION OF EMPLOYEES OR LOSING A MASS AMOUNT OF EMPLOYEES GONNA ALSO IMPACT THAT CONTRIBUTION NUMBER? HOW DOES THAT, HOW DOES THAT CHANGE THOSE NUMBERS? YOU'RE TALKING ABOUT NUMBERS, HOW, HOW IT CHANGES IN EMPLOYMENT CHANGE THE MEMBER CONTRIBUTIONS? YES. SO IF YOU HAVE LESS MEMBERS CONTRIBUTING, WHAT DOES THAT LOOK LIKE? YEAH. LESS MEMBERS CONTRIBUTING, UH, SHOULDN'T HURT YOU ON THE, THE, WHAT WE CALL THE NORMAL COST COMPONENT. THE VALUE OF NEW BENEFITS BEING EARNED, BUT IT DOES MAKE LESS COMPENSATION AVAILABLE TO FUND, UH, THAT UNFUNDED ACCRUED LIABILITY. IT'S STILL THE SAME AMOUNT AS A DOLLAR AMOUNT, AND YOU'RE STILL FUNDING IT THE SAME AS A DOLLAR AMOUNT, BUT AS A PERCENTAGE OF PAY, IT LOOKS LARGER AND LARGER IF YOU HAVE FEWER EMPLOYEES. SO WHENEVER WE HAVE OUR UNFUNDED LIABILITY, AND WE'RE TALKING ABOUT FUNDING THAT PART, OFTENTIMES WE'VE ASKED QUESTIONS ABOUT, UM, WHAT DOES IT LOOK LIKE? HOW CAN WE FUND OUR UNFUNDED LIABILITY? WHAT ARE THE NUMBERS AND THE RATIOS WITH REGARD TO HOW MANY EMPLOYEES WE NEED TO CONTINUE TO KEEP THAT BALANCE? AND OFTENTIMES THE RESPONSE IS OUR NUMBERS ARE ACTUARILY SOUND. SO WE HAVE AN ACTUARIAL FORMULA TO DETERMINE THAT WE HAVE AN UNFUNDED LIABILITY THAT IS CURRENTLY BEING SUPPORTED THROUGH MEMBER CONTRIBUTIONS. BUT WITH THAT BEING SAID, WHERE ARE THE TIPPING SCALES? WHAT ARE THE NUMBERS? WHAT DOES THAT LOOK LIKE? WHENEVER WE ARE LOOKING AT RATIOS AS FAR AS EMPLOYEE CONTRIBUTIONS, EMPLOYEES IN OUR DEPARTMENTS, WHERE ARE THE, WHERE ARE THE SCALES WHERE WE GET INTO A HIGH RISK PLACE? DO YOU, CAN YOU TALK TO SPEAK TO THAT? YEAH. AND, AND THIS IS, WILL REALLY BE MY ACTUARIAL OPINION, AND I I I, I PROBABLY SMILE A LITTLE BIT WHEN YOU SAY ACTUARILY SOUND, BUT I, I VIEW THAT AS A LITTLE BIT LIKE SAYING PRETTY, IT'S IN THE EYE OF THE BEHOLDER, RIGHT? WHETHER SOMETHING IS OR IS NOT ACTUARILY SOUND. UH, I, I THINK, I THINK THE IDEAL PENSION PLAN IS OVER 80 OR OVER 90% FUNDED. IF YOU'RE BELOW THAT, THERE IS SIGNIFICANT RISK IN YOUR SYSTEM. IF YOU'RE BELOW 60%, THERE IS CONSIDERABLE RISK IN YOUR SYSTEM. UM, THE, THE, THE DANGER IS, IS THAT YOU'RE 60% FUNDED AND THEN WE HAVE A 20% MARKET CORRECTION, AND THEN SUDDENLY 60 GETS MUCH, MUCH WORSE. SO MORE IS BETTER, CERTAINLY FROM A FUNDED RATIO, THE, THE TIPPING POINT IS HARD TO SAY. UM, IT, IT'S GONNA DEPEND ON A NUMBER OF CIRCUMSTANCES. AND THERE ARE CERTAINLY, THERE ARE MANY PENSION PLANS IN, IN WORSE SHAPE THAN, THAN THAN SPRS PLAN. UH, [02:15:01] THERE'S MANY IN, IN BETTER SHAPE. UH, ULTIMATELY IT COMES DOWN TO THE COMMITMENT TO MAKE THE MINIMUM RECOMMENDED CONTRIBUTION WHEN, WHEN THEY'RE DUE EACH YEAR. AND AS YOU'VE SEEN, THAT RATE HAS GONE UP OVER THE LAST SEVERAL YEARS. UH, WE WOULD HOPE WE'RE ENTERING A PERIOD MAYBE NOW WHERE THAT RATE STABILIZES OR BEGINS TO COME DOWN A LITTLE BIT. YOU'VE GOT SOME ACTUARIAL OR SOME ASSET GAINS FROM THE STANDPOINT THAT THE, THE MARKET VALUE RIGHT NOW IS ABOVE THE ACTUARIAL VALUE BY ABOUT 30 TO 40 MILLION, WHICH MEANS OVER THE NEXT FEW YEARS YOU'LL RECOGNIZE SOME OF THAT. SO WE DON'T ACTUALLY HAVE TO HAVE A 7% RETURN TO GET A 7% ACTUARIAL RETURN. SO MAYBE THERE'S SOME GOOD NEWS COMING DOWN THE PIKE, BUT THE DANGER IS ALWAYS, UH, BIG IN INVESTMENT OR ECONOMIC EVENTS THAT HURT THE ASSET STATUS OF THE PLAN, OR AS WE'VE SEEN ALREADY THESE LONG-TERM TRENDS OF THINGS LIKE THE DROP OVER TIME THAT PUT PRESSURE ON THE SYSTEM. ABSOLUTELY. AND SO WHEN WE'RE, WHEN WE'RE YOU, WERE YOU SPECIFICALLY SAID YOU HAVE TO MAKE THE COMMITMENT AND ABSOLUTELY. I BELIEVE EVERYBODY HERE WOULD ABSOLUTELY MAKE THE COMMITMENT AS LONG AS WE HAD THE ABILITY. I THINK THE ABILITY TO PAY IS PROBABLY A LITTLE BIT, UM, MORE VOLATILE THAN THE COMMITMENT TO PAY. BUT THE REALITY OF LOOKING AT THE NUMBERS WHEN WE'RE TALKING ABOUT THAT PERCENTAGE WHERE YOU SAID, HEY, 60% IS HIGH RISK, 90%, 80% WE'RE DOING GREAT. WHERE ARE WE? WHERE'S OUR PLAN? 65%. OH, OKAY. WE'RE AT 65%. AND THAT'S INTERESTING. UM, I, I DON'T THINK I HAVE ANY MORE QUESTIONS. COUNCILMAN GODDE, UH, DIRECTOR MAYORS, IF I COULD ASK FOR YOU TO COME UP AND THEN TO OUR, MY INITIAL QUESTIONS ARE MORE PROCESS RELATED, AND SO I'M GONNA ASK OUR COUNCIL ADMINISTRATOR AS WELL. SO THE SPR BOARD AND THE, AND THE RETIREMENT ADMINISTRATOR HAVE MADE RECOMMENDATIONS, NOW PROPOSED BENEFIT CHANGES TO THE COUNCIL, BUT IT'S IN THE FORM OF A MEMORANDUM AND NOW A REPORT. AND SO TONIGHT WE'RE NOT BEING ASKED TO TAKE ANY FORMAL ACTION ON ANYTHING. SO WHAT IS THE MECHANISM BY WHICH THIS COUNCIL EITHER TAKES ACTION OR SENDS WORD BACK TO THE SPRS BOARD? UM, SO YOU COULD HANDLE THIS ONE OF, UH, AT LEAST TWO WAYS. THE FIRST WOULD BE THAT ANY COUNCIL MEMBER COULD TAKE THE INFORMATION RECEIVED TONIGHT AND PUT AN ITEM ON THE AGENDA TO PROPOSE CHANGES TO THE RETIREMENT ORDINANCE. UM, ANOTHER WAY WOULD BE FOR THE RETIREMENT BOARD TO VOTE AND AGREE TO PLACE AN ITEM ON THE COUNCIL AGENDA, UM, BECAUSE THEY CAN PLACE ITEMS ON THE AGENDA, UM, AND REQUEST CHANGES TO THE RETIREMENT ORDINANCE. THANK YOU FOR THAT. HAS THE BOARD HAD DISCUSSIONS ABOUT TAKING ACTION, UH, TO PUT AN ITEM ON THE AGENDA? NOT SPECIFICALLY. UM, IT, IT WAS OUR INSTRUCTION TO COME UP WITH RECOMMENDATIONS FOR METRO COUNCIL. OKAY. UM, SO THAT WAY YOU ALL COULD MAKE THE DECISION. OKAY. UM, SO THEY DID DO THAT. OUR BOARD MEETING IS NOT UNTIL THE END OF JULY. UM, TO WHERE THEY WOULD, WE WOULD, WE WOULD COME UP WITH LANGUAGE UNDERSTOOD. AND THEN PROPOSE TO THEM TO THEN BRING TO YOU. OKAY. UM, BUT IF ANY OF YOU WANTED TO MAKE ANY OF THE CHANGES, BY ALL MEANS MY OFFICE CAN BE AVAILABLE TO HELP ASSIST DRAFT LANGUAGE. I'M PUTTING THAT TOGETHER. MM-HMM . J MR. DANIELS, YOU'RE THE CHAIR OF THE BOARD. CORRECT. IF YOU'LL JOIN HER. SO, I MEAN, I GUESS BROADLY SUPPORTIVE OF THE, THE CHANGES THAT YOU ALL HAVE PROPOSED. LET ME ASK, UH, WITH RESPECT TO THE ELIMINATION OF THE, UH, SPOUSAL DEATH BENEFIT OF A NON VESTED SPOUSAL DEATH BENEFIT, THE DROP MODIFICATIONS AND THE TWO FOR ONE, THE ELIMINATION OF THE TWO FOR ONE LEAVE CONVERSION, DID Y'ALL LOOK AT MAKING IT VOLUNTARY FOR, ON THOSE THREE, SPECIFICALLY VOLUNTARY FOR CURRENT EMPLOYEES? IN OTHER WORDS, YOU KNOW, REDUCING THE, THE DROP, UH, PERIOD FROM FIVE YEARS TO THREE YEARS, BUT MAKING THAT MODIFIED DROP TERMS AVAILABLE ON A VOLUNTARY BASIS TO CURRENT EMPLOYEES? JAY DANIELS, UM, S CHAIR, UM, NO, WE DIDN'T FOR, NOT FOR THE, UM, CURRENT EMPLOYEES. THIS WAS ALL SOMEWHAT PROSPECTIVE FOR ALL THE NEW EMPLOYEES GOING FORWARD. I'D ENCOURAGE Y'ALL TO LOOK AT, I MEAN, I, I THINK THERE MAY BE SOME EMPLOYEES PARTICULARLY DROP, PARTICULARLY ON THE TWO FOR ONE LEAVE CONVERSION, WHO ACTUALLY BENEFIT FROM IT. AND AGAIN, NOT MANDATORY, BE VERY CLEAR. I UNDERSTAND WHAT'S BEEN SAID MANY TIMES TONIGHT. NOT MANDATORY, BUT A VOLUNTARY. SO, SO FOR NEW HIRES GOING FORWARD, ANY VOLUNTARY OPTION ON THOSE FOR EXISTING COULD ASSIST IN THE ULTIMATE GOAL OF COST SAVINGS AND COULD BENEFIT SOME EMPLOYEES, EXISTING EMPLOYEES. SO, UH, TO ME, I THINK THE BOARD, WHAT I'D ASK NOW IS THAT THE BOARD CONSIDER THOSE, UH, CONSIDER THAT THOSE OPTIONS. THAT'S IT. ALRIGHT. GOOD. ALRIGHT. THANK YOU. [02:20:01] THANK YOU. I, I, I, I THINK THAT'S IT. I MEAN, I STILL AM SORT OF, I DON'T, I DON'T HAVE MY FINGER ON THE PULSE OF WHAT'S, WHAT'S NEXT. 'CAUSE I THINK YOU'VE HEARD SOME SENTIMENT TONIGHT ABOUT MAYBE THESE DON'T GO FAR ENOUGH. MM-HMM . I'M NOW VOICING, WELL, MAYBE THERE'S SOME OTHER THINGS YOU COULD LOOK AT. AND SO I'M NOT SURE, YOU KNOW, HOW WE COME TOGETHER AND SAY, WELL, OKAY, NOW ONCE THE MEETING IS DONE, HERE'S WHAT YOU DO NEXT. SO ANYWAY, WE'LL KEEP TALKING AND I'M ONE OF 12. AND SO WE'LL SEE WHAT HAPPENS. WELL, WE ARE OPEN TO ANY ADDITIONAL INSTRUCTION OR IDEAS THAT YOU HAVE. AGAIN, OUR BOARD MEETS AT THE END OF JULY. SO IF THERE'S ANYTHING THAT YOU'D LIKE US TO DO AND HAVE THE BOARD APPROVE, YOU HAVE FIVE WEEK, YOU MIGHT GET 12 SETS OF INSTRUCTIONS. WELL THEN WE'LL HAVE A LOT TO WORK TO DO IN JULY. THANK YOU. THANK YOU. THANK YOU. THANKS FOR ALL THE WORK Y'ALL DID ON THIS AS WELL TO ALL OF YOU. I THINK WE'VE MET TWICE AND THE MEMORANDUMS AND, AND INFORMATION SUBMITTED IN ADVANCE IS VERY HELPFUL. SO THANK Y'ALL VERY MUCH FOR ALL THE WORK THAT'S GOING INTO IT. UH, LIKE A BULLET. WE'RE GONNA FINISH THIS FIRST. I KNOW. LET ME DO THE EMERGENCY ITEMS FIRST. ABSOLUTELY. OKAY. ALL RIGHT. SEE ALL THOSE ITEMS. ONE, YEAH. BABY STEPS. ITEMS ONE 40 THROUGH, DID DID WE RECEIVE THE REPORT? WE DID. YOU CAN. OH, OKAY. PRETTY POSITIVE WE RECEIVED IT. WELL, I UNDERSTAND. WE HEARD IT. I DIDN'T KNOW IF ANY ACTION. WE DON'T NEED TO TAKE ACTION. THANK YOU. ALRIGHT. THE RECEPTION WAS RECORDED. ITEMS, [140. 26-00751] UH, ONE 40 THROUGH 1 44 ARE EMERGENCY ITEMS IN ACCORDANCE WITH ORDINANCE 1 6 4 4 2. THESE ITEMS CAN BE DECLARED AN EMERGENCY BY TWO THIRDS VOTE OF THE METROPOLITAN COUNCIL. I NEED A MOTION TO DECLARE ON AN EMERGENCY MOTION BY COUNCILWOMAN AMAROSA. SECOND BY COUNCILMAN HUDSON. ANY OPPOSITION TO, ON THE MOTION TO DECLARE AN EMERGENCY. ALL RIGHT. ITEM ONE 40, AUTHORIZING AND APPROVING SELECTION OF THE ADVOCATE AS THE OFFICIAL JOURNAL OF THE PARISH, EAST BATON ROUGE, CITY OF BATON ROUGE FOR A PERIOD OF JULY 1ST, 2026 UNTIL JUNE TILL JUNE 30TH, 2027. IN ACCORDANCE WITH LOUISIANA REVISED STATUTES. ONE, UH, 43 1 41 A BY COUNCIL, ADMINISTRATIVE TREASURER REGION FOR THE EMERGENCY IS TO SELECT, TO SELECT THE JOURNAL PRIOR TO JULY 1ST, 2026. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SHOULD WE HEAR FROM THE JOURNAL? YEAH. ADVOCATE HERE. IT DID SAY ADVOCATE. RIGHT? IT SAID S OKAY. SEE NONE. MOVE . GO COUNCIL. MOTION. MOTION BY COUNCILMAN HUDSON. SECOND BY COUNCILMAN MOGUE. ANY OPPOSITION? MOTION CARRIES 1 41 [141. 26-00754] RESOLUTION TO AMEND THE DUE DATE FOR LOCAL HOSPITAL ASSESSMENT PAYMENTS FOR THE EAST BATON ROUGE PARISH LOCAL HEALTHCARE PROVIDER PARTICIPATION PROGRAM PER FISCAL YEAR 2025 BY COUNCIL ADMINISTRATOR TREASURER. REASON FOR EMERGENCY IS TO EXTEND THE DUE DATE BEYOND JUNE 30TH, 2026. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? NEED NONE. GO TO COUNCIL OF A MOTION. MOTION BY COUNCILWOMAN AMAROSA. SECOND BY COUNCILMAN MOOCH. ANY OPPOSITION? MOTION CARRIES. AND 1 42 [142. 26-00753] AUTHORIZING THE MAYOR PRESIDENT TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT TO COORDINATE SERVICE DELIVERY OF MANDATED PARTNERS AND PROVIDERS ON BEHALF OF THE LOCAL WORKFORCE DEVELOPMENT BOARD. 21 WITH ECKERD CONNECTS DOING BUSINESS AS ECKARD YOUTH ALTERNATIVES, INC. BY WORKFORCE INVE. WORKFORCE INVESTMENT DIRECTOR. REASON FOR THE EMERGENCY IS THE CURRENT CONTRACT WITH ECKARD CONNECTS EXPIRES JUNE 30TH, 2026. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? ANY? NONE CAN GO TO COUNCIL. COUNCIL. MCCOMB IS THAT WORKFORCE INVESTMENT DIRECTOR HERE AND COME AND HAVE A CONVERSATION ABOUT THIS. GOOD AFTERNOON. GURLEY ANDERSON. UM, INTERIM WE CHIEF ADMINISTRATOR FOR EMPLOYED BUREAU. OH, I'M SORRY. OKAY. SO, UM, IT'S AN EMERGENCY ITEM. UM, BECAUSE WE WERE WAITING ON LOUISIANA WORKS TO GIVE US GUIDANCE ON, UH, WHETHER WE WERE GONNA DO A SINGLE STATE ONE, UM, ONE STOP OPERATOR OR IF THEY WERE GONNA LET US CONTINUE WITH THE 15 INDIVIDUAL CONTRACTS, UH, WHILE THEY DECIDE HOW WE MOVE FORWARD WITH IMPLEMENTING SINGLE STATE. AND SO THEY HAVE GIVEN YOU ALL CLEARANCE? THAT ANSWER? YES, MA'AM. AND WHEN DID THEY GIVE YOU ALL THAT? UH, MAY 26TH. [02:25:02] OKAY. A MONTH LATER. OKAY. COUNCILMAN HURST. SO HAS THE PROCESS CHANGED? WHAT, WHAT PROCESS? JUST THE, THE PROCESS FOR WORKFORCE DEVELOPMENT. I KNOW WE KIND OF HAD A FREEZE ON GETTING NEW PEOPLE MM-HMM . UNTIL THE DECISION WAS MADE. SO NOW, NOW WE CAN START SENDING PEOPLE BACK TO YOU TO GET EMPLOYED. RIGHT? UH, SO NO, WE'RE MOVING FORWARD WITH SINGLE STATE. UM, WE ARE SETTING UP, UM, JOB FAIRS FOR OUR TEMPORARY WORK, UM, WORKERS THAT ARE CURRENTLY, UM, UNDEREMPLOYED BUREAU. UM, WE'RE FIRST HITTING UP THE CITY. THE CITY'S GONNA DO, UM, SOMETHING FOR US, FOR OUR PEOPLE. AND THEN WE'RE GONNA HAVE OUR ONE STOP OPERATOR, MS. COVERSON, UM, BRING IN SOME OTHER, UM, AREA PARTNERS TO CONNECT THOSE INDIVIDUALS TO EMPLOYMENT. SO, I'M KIND OF CONFUSED. SO I, I UNDERSTAND THE JOB FAIR 'CAUSE I'VE SENT SOME FOLKS AWAY WHERE YOU'VE ASSISTED THEM OR AT LEAST DISCUSSED ASSISTANCE, PUTTING A JOB FAIR EVEN FOR SMALL BUSINESSES. MY QUESTION IS, IS IF I HAVE SOMEBODY WHO IS UNEMPLOYED, UM, BUT WANTS TO BE GAINFULLY EMPLOYED, I CAN NO LONGER SEND THEM TO YOU. I HAVE TO SEND 'EM TO A JOB FAIR. SO IS THE STATE GOING TO HAVE SOMEWHERE WHERE I CAN SEND THEM THAT YOU ALL REDIRECT SO THAT THEY CAN, UM, GO THROUGH SOME OF THE SAME EMPLOYMENT PROGRAMS OR ALL THOSE CHANGING AS WELL? SO YOU, YOU CAN STILL SEND 'EM TO EMPLOYEE VR? WE WOULD, UH, ASSIST WITH JOB SEARCHES. WE ARE NO LONGER OFFERING TEMPORARY WORK EXPERIENCE, UM, PLACEMENTS BECAUSE WE, WE ARE THE ONLY LOCAL AREA THAT OFFERS THAT. UM, AND SO I DON'T KNOW IF THEY'RE GONNA SUPPORT IT MOVING FORWARD WHEN EVERYONE GOES TO SINGLE STATE. SO, UH, WE JUST DIDN'T WANT TO ADD ANYONE ELSE TO WORK AND THEN WE HAVE TO LET, UM, AND THEN WE HAVE TO LET THEM GO. HAVE YOU ASKED DIRECTLY IF THAT WAS A POSSIBILITY AND WHAT THE TIMEFRAME WOULD BE? 'CAUSE THAT WAS A HUGE HELP IN THE MARKETPLACE, GETTING PEOPLE EMPLOYED PRETTY FAST. YOU KNOW, SOMEBODY WITH A JOB IS MORE ATTRACTIVE THAN SOMEBODY WHO HASN'T, DOESN'T HAVE ONE, RIGHT? CORRECT. PEOPLE QUESTION WHY? SO, FINDING SMALL BUSINESSES, OR EVEN SOMETIMES OUR OFFICES WHERE WE CAN EMPLOY PEOPLE WHO LOOKS GOOD WHEN YOU WORK FOR THE CITY OF BATON ROUGE ON A, ON A, ON A PIECE OF PAPER, RIGHT? MM-HMM . SO WERE YOU MANDATED TO STOP OR DID YOU CHOOSE TO STOP? NO, WE CHOSE TO STOP BECAUSE WE DIDN'T WANT TO INCREASE, UM, THE LAYOFF RATE. HAVE YOU? BUT IT, I MEAN, WE'VE BEEN TALKING ABOUT THIS NOW FOR SIX MONTHS MM-HMM . SO THAT COULD HAVE BEEN SIX MONTHS. SOMEBODY WAS EMPLOYED LOOKING FOR ANOTHER JOB. SO MY QUESTION IS, IS CAN YOU REACH OUT TO THE STATE AND ASK WHAT THE TIMEFRAME LOOKS LIKE SO THAT YOU KNOW WHAT YOU CAN DO SO THAT WE CAN SEND PEOPLE TO YOU? I DON'T CARE IF IT'S FOR 30 DAYS OR FOR 12 MONTHS, ESPECIALLY IF IT'S GONNA TAKE 'EM A WHILE TO CONSOLIDATE TO A STATE PROGRAM. I'LL ABSOLUTELY ASK. THANK YOU SO MUCH. YOU'RE WELCOME. MOTION BY, I'M SORRY, COUNCILMAN HARRIS. SECOND BY COUNCILMAN HARRIS. ANY OPPOSITION? MOTION CARRIES. THANK YOU. 1 43 [143. 26-00791] AUTHORIZING MAYOR, PRESENT ON BEHALF OF THE LIBRARY BOARD OF CONTROL TO EXECUTE THE FIRST OPTIONAL ONE YEAR RENEWAL OF CONTRACT WITH OOK JANITORIAL SERVICE, INC. IN AN AMOUNT NOT TO EXCEED $720,000 WITH ONE OPTIONAL ONE YEAR RENEWAL FOR A TOTAL AMOUNT NOT TO EXCEED $1,440,000 BY THE LIBRARY DIRECTOR. REASON FOR EMERGENCY IS TO REQUEST METRO COUNCIL FOR OKAY JANITORIAL, PERFORM THE WORK AS SPECIFIED IN THE CONTRACT, BUT THEY CANNOT PAY THEM UNTIL THE RESOLUTION IS AMENDED TO INCLUDE THE TWO OPTIONAL RENEWALS OUTLINED IN THE ATTACHED MEMO. ANYONE HERE WISHING TO SPEAK ON THIS ITEM? SAME. NOW GO TO COUNCIL MOTION. MOTION BY COUNCIL MCKENNEY. SECOND BY COUNCILWOMAN COLEMAN. ANY OPPOSITION? MOTION CARRIES. [144. 26-00796] 1 44 RESCHEDULING THE JULY 15TH, 2026 METROPOLITAN COUNCIL'S ZONING MEETING TO JULY 22ND, 2026 AT 3:30 PM BY COUNCIL. ADMINISTRATIVE TREASURER. REASON FOR EMERGENCY IS IN ORDER TO MOVE THE MEETING, ANYONE HERE WISH TO SPEAK ON THIS ITEM? GO TO COUNCIL MOTION. MOTION BY COUNCILWOMAN AMAROSA. SECOND BY COUNCILWOMAN HARRIS. ANY OPPOSITION? MOTION CARRIES. UH, [ADMINISTRATIVE MATTERS (Part 2 of 2)] MOTION TO RECONSIDER ADMINISTRATIVE MATTERS. ALL RIGHT. WE HAVE A, WE HAVE A MOTION TO RECONSIDER ADMINISTRATIVE MATTER BY COUNCILMAN HURST. I'M GONNA OBJECT. . OH, I'M, I'M WALKING. HOLD ON. , WAS THAT AN OBJECTION? NO. YOU NEED, I NEED A SECOND FOR, FOR A MOTION TO RECONSIDER A SECOND BY COUNCILWOMAN COLEMAN. ANY OPPOSITION? MOTION TO RECONSIDER ITEMS HAVE BEEN RECONSIDERED. I DON'T NEED TO READ IT ALL AGAIN. YEAH. OKAY. ADMINISTRATIVE MATTER EMERGENCY ITEM. A AUTHORIZED MAYOR, PRESIDENT TO EXECUTE AN AMENDED [02:30:01] AND RESTATED SUBRECIPIENT AGREEMENT WITH THE EAST BATON ROUGE PARISH HOUSING AUTHORITY AND RELATED PROJECT PARTIES, INCLUDING PARTNERS FOR PROGRESS INCORPORATED. DOING BUSINESS AS PARTNERS SOUTHEAST AND CYPRUS AT DALE. PHASE ONE, LP FOR THE CYPRUS AT DALE. PHASE ONE, AFFORDABLE HOUSING DEVELOPMENT PROJECT FUNDED IN PART THROUGH AMERICAN RESCUE PLAN ACT. CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS. SO AS TO CLARIFY AND REALIGN THE EXISTING AGREEMENT WITH THE PROJECT'S, LOW INCOME HOUSING TAX CREDIT FINANCING STRUCTURE, DOWNSTREAM LOAN DISBURSEMENT FRAMEWORK PAYMENT TERMS AND COMPLIANCE REQUIREMENTS WITH NO INCREASE TO EXISTING ALLOCATION AND NO CHANGE TO THE APPROVED PROJECT PURPOSE. MY COMMUNITY DEVELOPMENT DIRECTOR REASON AS ITEMS BEING REQUESTED AS ADMINISTRATIVE MATTER IS TO ENSURE COMPLIANCE WITH INTERNAL DEADLINES. I NEED A MOTION TO WAIVE THE RULES. MOTION BY COUNCILWOMAN HARRIS. SECOND BY COUNCILWOMAN AMAROSA. WE'RE GONNA HAVE A PUBLIC HEARING ON THE MOTION TO WAIVE THE RULES. ANYONE HERE WISHING TO SPEAK ON THE MOTION TO WAIVE THE RULES? SEEING NONE GO TO COUNSEL. IS THERE ANY OBJECTION ON THE MOTION TO WAIVE THE RULES? NO OBJECTION. WELL, UH, ALL RIGHT. NOW WE'LL HAVE A, WE'LL HAVE A PUBLIC HEARING. IS ANYONE WISHING TO SPEAK ON THE ITEM PLEASE? WILLIAM. THANK YOU COUNCIL. TRULY APPRECIATE YOU CONSIDERING THIS ITEM. UH, WE'VE BEEN TRYING TO GET SOME PEOPLE PAID FOR A WHILE. UH, WHEN THIS ITEM WAS ORIGINALLY DONE BACK IN 2223, UH, IT WAS, UH, STRUCTURED AS A REIMBURSEMENT BASED AGREEMENT. UH, THE PROBLEM WAS, IS THAT THESE ARE A LOT MORE COMPLICATED THAN THAT. AND, UH, THE PROJECT ACTUALLY OPERATES AS A LAYERED AFFORDABLE HOUSING FINANCE TRANSACTION WITH MULTIPLE COMPANIES. UH, SO A REIMBURSED BASED AGREEMENT WAS NOT POSSIBLE. WE'VE SIMPLY JUST ADDED THOSE OTHER COMPANIES TO THE CONTRACT SO THAT WE'LL BE IN COMPLIANCE. THE PROJECT HAS ACTUALLY BEEN BUILT, IT'S AND OCCUPIED, AND IT'S A GREAT PROJECT AND THIS IS JUST PART OF IT. BUT THERE'S BEEN SOME PEOPLE THAT HAVE NOT BEEN ABLE TO GET PAID BECAUSE OF THIS ISSUE AND THIS CORRECTS THE ISSUE. ANYONE ELSE WISHING TO SPEAK ON THIS ITEM? NO. GO TO COUNCIL COUNCILWOMAN, AKA MR. DANIEL. UM, CAN YOU PLEASE COME BACK TO THE MICROPHONE? I HAVE SOME QUESTIONS REGARDING SOME OF THE COMMENTS THAT YOU JUST MADE WITH REGARD. UM, YOU SAID THAT IT WAS 2022 STRUCTURED PAY AGREEMENT, BUT YOU SAID THAT WE NEEDED TO GET IN COMPLIANCE. ARE WE CURRENTLY NOT IN COMPLIANCE? WE'RE NOT IN COMPLIANCE TO BE ABLE TO MAKE A PAYMENT TO THE HOUSING AUTHORITY MM-HMM . BECAUSE THE ORIGINAL AGREEMENT WAS SET UP TO BE REIMBURSEMENT? WELL, BECAUSE OF THE WAY THESE AGREEMENTS ARE STRUCTURED, AND THIS IS TRUE NATIONALLY, THERE ARE SEVERAL LAYERS TO THE FUNDING. THEY ACTUALLY GO DOWN AND WITH SEVERAL OTHER COMPANIES, UH, WHO ARE ACTUALLY DOING THE WORK. SO WHEN WE ASK FOR A CHECK, I MEAN, WE ASK FOR AN INVOICE FROM THE HOUSING AUTHORITY SHOWING THAT THEY PAID ALL THEIR INVOICES. THEY CAN'T GIVE US ONE. SO WE RESTRUCTURED THE AGREEMENT SO THAT IT WOULD REFLECT THE FACT THAT THOSE PAYMENTS HAD BEEN MADE AND WE COULD REIMBURSE THEM. SO WHO HAVE THE PAYMENTS NOT BEEN MADE TO? NO, NO, THE PAYMENTS HAVE ALL BEEN MADE. WELL, YOU SAID THAT THERE WERE PEOPLE THAT WERE NOT GETTING PAID. OH, UH, YES. UH, THE CONTRACTOR, MILTON WOMACK CONTRACTORS AND HIS, UH, SUBSIDIARIES. BUT YOU ALSO SAID THAT ALL THE WORK HAS BEEN DONE. IT HAS BEEN. SO WHY COULDN'T WE PAY MR. MILTON WOMACK AND HIS COMPANY? 'CAUSE WE COULD NOT GIVE THEM THE FINAL $6 MILLION THAT WE OWED THEM BECAUSE THIS WAS, UH, A REIMBURSEMENT AGREEMENT AND THEY, THE HOUSING AUTHORITY HAD NO INVOICE TO SHOW US THAT IT WAS PAID. IS IT A PROBLEM THAT THEY DON'T HAVE AN INVOICE? NO, BECAUSE THE MONEY WAS ACTUALLY SPENT BY A COMPANY THAT WAS LAYERED BELOW THEM IS, I'M GONNA LET YOU DO IT. I HAVE CSRS AND EVERYBODY WALKING UP. COME ON. CSRS. WERE YOU GUYS, WERE YOU GUYS, UM, MONITORING WHAT WAS GOING ON AT THE TIME? SO CERTAINLY WE, WE ARE IN CONSTANT COMMUNICATION WITH THE HOUSING AUTHORITY. THE ISSUE, AND JUST TO PIGGYBACK OFF WHAT MR. DANIELS SAID IS TRADITIONALLY IN A REIMBURSEMENT BASE PROGRAM, AND I THINK MR. GOODDAY WILL APPRECIATE THIS FROM HIS OCD DAYS, UH, BUT A COST IS INCURRED, A CHECK IS CUT, AND THEN A REIMBURSEMENT IS SOUGHT. WHAT THE STRUCTURE THAT, UH, THE, THE FOLKS THAT WERE AT THE HOUSING AUTHORITY PARTNER SOUTHEAST, AND THEN ULTIMATELY CYPRUS AT DALE LP HAVE, IS THE COST IS INCURRED. THEY PRESENT THAT INVOICE, WHICH WE HAVE AND ALL OF THE CUMULATIVE THINGS, AND [02:35:01] THEN THEY RES REQUEST A DISBURSEMENT TO COVER THAT COST AND THEN, THEN THE CHECK IS CUT. OKAY. SO IT'S A SLIGHT NUANCE AND PHRASE RELATIVE TO HOW MONEY LEAVES CITY PARISH RELATIVE TO HOW MONEY HAS LEFT OR BEEN INCURRED BY THE HOUSING AUTHORITY AND ITS DOWNSTREAM ENTITIES. SO CURRENTLY WE'RE NOT IN COMPLIANCE BECAUSE WE WEREN'T DOING IT THAT WAY, CORRECT? WELL, THE, ACTUALLY, THE, THE PRIOR WORK THAT HAD BEEN DONE HAD BEEN DONE IN THAT FASHION, BUT IT WAS LIMITED TO SIMPLY THE, I BELIEVE THE, THE DEMOLITION OF THE PROJECT AT FIRST. AND IT WAS UNDER KIND OF A FIRST PHASE OF A CONSTRUCTION CONTRACT. NOW THAT WE'RE IN THE SECOND PHASE, IT'S UNDER THIS MORE DISBURSEMENT BASED FRAMEWORK. AND WE'RE THE LAST POOL OF FUNDS TO GET PICKED UP IN THAT DISBURSEMENT BASE FRAMEWORK AND PAY OUT THE CONTRACTOR. CORRECT ME IF I'M MISSTATING ANYTHING, MR. DANIELS ARPA FUND? YEAH, IT'S, IT'S, IT IS ARPA FUNDING. JAY DANIELS, UM, CEO OF THE HOUSE OF AUTHORITY. UM, WANTED AND WANTED TO THANK THE PARTNERSHIP OF, OF THE METRO COUNCIL. THE $8 MILLION IS PART OF $70 MILLION BOND DEAL. UM, AND SO ULTIMATELY WHEN WE RECEIVED IT AS THE ORIGINAL SUB SUB GRANT RECIPIENT, UH, WE THEN LOAN THOSE FUNDS INTO A TAX CREDIT DEAL. SO TYPICALLY WHAT YOU SEE, I THINK THE ORIGINAL FRAMEWORK OF ARPA DOLLARS ARE SOMEWHAT SERVICE ORIENTED LIKE A SERVICE AGREEMENT. BUT THEN WHEN WE, WHEN WE RECEIVE IT FROM THE HOUSING AUTHORITY, IT GOES INTO A TAX READY DEAL. PARTNER SOUTHEAST IS OUR NON-PROFIT DEVELOPMENT ARM, WE THEN LOAN THOSE FUNDS INTO THE TAX CREDIT PARTNERSHIP. THIS IS A PUBLIC-PRIVATE PARTNERSHIP TO WHERE HOME BANK IS THE CONSTRUCTION FINANCE RES BANK IS THE TAX CREDIT INVESTOR. UM, UM, HOOD PUTS IN ANOTHER $12 MILLION STATE PUTS IN ANOTHER $13 MILLION, AND THEN $8 MILLION COMES IN FROM THE CITY SIDE. SO ULTIMATELY WHAT DIDN'T, UH, APPEAR IN THE ORIGINAL AGREEMENT WERE THOSE TWO RELATED ENTITIES. ONE BEING THE PARTNER SOUTHEAST AND THE TAX CREDIT ENTITY. SO REALLY IT'S A TECHNICAL ASPECT. I THINK CSRS AND THE CITY WANT TO MAKE SURE THEY HAD NICE VOTE, YOU KNOW, TIE AROUND US TO MAKE SURE THAT WE'RE IN COMPLIANT WITH ALL THE RELATED ENTITIES THAT WAS SUPPOSED TO BE IN THE ORIGINAL AGREEMENT. IT'S CODIFIED IN ALL THE OTHER CLOSING DOCUMENTS, BUT JUST NOT IN THIS PARTICULAR OUR PROGRAM. OKAY. THANK YOU FOR THAT EXPLANATION. AND A REP FROM CSRS. THANK YOU, SIR. UM, SO CURRENTLY AS YES, PLEASE. CURRENTLY AS IT STANDS, ARE WE AT RISK OF LOSING ANY FUNDING OR HAVING TO REPAY ANY FUNDING? WHAT ARE, WHAT DOES IT LOOK LIKE MOVING FORWARD? SO ONCE THE PAYMENT IS ISSUED, ASSUMING YOU APPROVE THE AMENDED AND RESTATED AGREEMENT THAT IS HERE US IN THE CITY PARISH STILL HAVE A DOWNSTREAM MONITORING OBLIGATION TO THE PROJECT AND TO ALL THREE OF THESE ENTITIES AFFILIATED WITH IT, AND THAT'S GONNA REQUIRE, YOU KNOW, CONTINUED CO COLLABORATION WITH THE HOUSING AUTHORITY TO REDUCE THAT RISK. IS THERE NO RISK IN THAT? THAT'S NOT THE APPROPRIATE ANSWER. IS THERE SOME, IS IT MO, IS IT MITIGATED BY EXTENSIVE COLLABORATION WITH THE HOUSING AUTHORITY AND ITS DOWNSTREAM ENTITIES? ABSOLUTELY. IS IT ALSO MITIGATED BY MAKING THIS CHANGE TONIGHT? CORRECT. OKAY. AND SO MOVING FORWARD, WHEN WILL WE KNOW IF, IF IT'S BEEN ACCEPTED BY THE TREASURY OR, OR WHOEVER IS INVOLVED WITH EVALUATING WHETHER OR NOT WE DID THE RIGHT THING OR THE WRONG THING? SO I BELIEVE WE'VE GOT A FIVE YEAR OBLIGATION, OR A FIVE YEAR PERIOD IN WHICH TREASURY HAS THE ABILITY TO COME BACK AND LOOK AT FILES FROM A RECORDS RETENTION STANDPOINT. SO AT THE CONCLUSION OF THE END OF 2026, WE'LL HAVE, I THINK IT'S A FIVE YEAR CLOCK WHERE TREASURY CAN ALWAYS COME BACK AND AUDIT THOSE FILES IN ANY WAY THEY SEE FIT. WE HAVE NOT, DON'T HAVE MUCH PRECEDENCE AS TO HOW TREASURY IS GOING TO ACT ON THOSE FILES GOING FORWARD, BUT I THINK IN THIS CASE, WITH THE RESTATED AGREEMENT, WE HAVE A VERY DEFENSIBLE CASE FROM A RISK STANDPOINT MOVING FORWARD. DO WE HAVE ANY OTHER MATTERS OUT THERE THAT ARE SIMILAR TO THIS WHERE, WHERE WE MISSED SWUNG AND MISSED WITH ARPA DOLLARS? YOU HAVE SOME OTHER AREAS OF OF RISK THAT I THINK Y'ALL ARE AWARE, WELL AWARE OF, UH, WITHIN THE OVERALL ARPA PORTFOLIO, UH, THIS PROJECT. AND THEN, UM, ANOTHER, THERE'S ANOTHER, UH, THAT IS RELATED TO SCOTLANDVILLE HOUSING PROJECT. ARE WE, ARE, IS CSRS HELPING US MITIGATE THAT RISK AND MOVING THOSE PROJECTS FORWARD IN THE SAME MANNER? ARE WE DOING EVERYTHING WE NEED TO DO? YOU HAVE AN ADMINISTRATION RIGHT NOW WHO IS VERY, VERY RESPONSIVE TO THE REALITIES OF RISK AND WANTING TO CROSS EVERY T AND DOT EVERY I POSSIBLE. BUT FOR THIS PARTICULAR PROGRAM WITH THESE ARPA DOLLARS, CURRENTLY, THEY'RE, WE YOU DON'T FORESEE ANY ISSUES ONCE WE MAKE THESE CHANGES TONIGHT? I, YES. ASSUMING LIKE WE HAVE [02:40:01] OVER THE PAST COUPLE MONTHS WITH MR. DANIELS, THAT WE'VE GOT FULL FAITH AND COOPERATION WITH THE EVR HOUSING AUTHORITY AND THE FINAL RECONCILIATION OF, YOU KNOW, HE'S GOT A LAYERED CAPITAL STACK HERE AND WE WANNA MAKE SURE THAT NO, NO PORTION OF THAT STACK IS DOUBLE PAYING FOR NT ANY PARTICULAR ITEM ASSOCIATED WITH THE PROJECT. THAT FINAL RECONCILIATION WON'T HAPPEN AND IT TRAILS WITH THE TAX CREDITS THAT, UM, ARE ALLUDED TO IN THE PREAMBLE HERE. BUT THAT WON'T HAPPEN FOR SOME TIME UNTIL THE PROJECT IS CLOSED OUT. BUT AS LONG AS WE'RE WORKING WITH THE HOUSING AUTHORITY, I THINK YOU'VE GOT MINIMAL RISK. YES. AND THE VENDORS THAT DID WORK WILL BE PAID. ULTIMATELY THAT'S WITH THE HOUSING AUTHORITY AND ITS DOWNSTREAM ENTITIES, BUT IT WILL, THIS WILL ENABLE THE CITY PARISH TO PROCEED WITH ITS OBLIGATION TO THE PROJECT. THANK YOU BOTH VERY, VERY MUCH APPRECIATE. THANK YOU. COUNCILMAN HUDSON. I, I JUST WANTED TO CLARIFY REAL QUICK, UH, IT WAS STATED THAT YOU DON'T HAVE INVOICES. I THINK A BETTER WAY OF OF SAYING IT JUST FOR ME TO UNDERSTAND IT AND POSSIBLY IN THE MEDIA IS THAT, UH, YOU DO ACTUALLY HAVE INVOICES. YOU JUST DON'T HAVE PAID INVOICES TO BE ABLE TO REIMBURSE. IS THAT CORRECT? WE DON'T HAVE CANCELED CHECKS. GOTCHA. FROM, FROM FROM THE HOUSING AUTHORITY. IT IS, UM, IT'S ALL IN THE NAME OF THE ACTUAL LP ITSELF HAVE MAKE FOR THE WORK THAT'S BEEN DONE. YEAH. IT'S, IT, IT IS ALL ON THE TAX CREDIT SIDE. AND THANK YOU. THIS IS, THIS HAS MANY LAYERS OF, OF COMPLIANCE WITH THE INVESTORS, WITH THE, WITH THE, UM, WITH THE CONSTRUCTION FINANC AS WELL AS PERMANENT FINANCING. WE'VE ALREADY HAD AN AUDIT FOR IT BECAUSE AS A TAX RATE OF DEVELOPMENT, YOU HAVE TO DO AUDITS EVERY SINGLE YEAR. AND WE JUST COMPLETED OUR FIRST ONE. AND SO EVERY YEAR THAT'LL BE PART OF THE COMPLIANCE WITH TREASURY AS WELL AS FOR THE NEXT 15 YEARS, WE'LL HAVE THOSE AUDIT FINANCIALS. AWESOME. THANK YOU. COUNCILMAN SY. WE HAVE A MOTION FROM YOU. ABSOLUTELY. MOTION BY COUNCILMAN HURST. SECOND BY COUNCILMAN KENNY. IS THERE ANY OPPOSITION? MOTION CARRIES MEETINGS ADJOURNED. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.