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FOR ALL 23
SHE HAS BEEN HERE FOR QUITE SOME TIME AND I NEGLECTED TO ANNOUNCE THAT.
SO WELCOME AMY PECK AND WE WILL NOW TURN IT OVER TO OUR GENERAL SERVICES DEPARTMENT DIRECTOR, CJ MESSIAH AND CHRISTOPHER GONZALEZ TO PRESENT ON THE PROPOSED GENERAL SERVICES DEPARTMENT'S BUDGET PRESENTATION.
OKAY, SO TO START, THIS IS NOT CHRISTOPHER GONZALEZ, IT'S ANDY QUI FROM THE, I DID NOT EVEN LOOK UP.
CHRIS IS IN THE BACK SOMEWHERE.
SO GOOD MORNING AND THANK YOU FOR THE OPPORTUNITY TO PRESENT THE BUDGET FOR THE GENERAL SERVICES DEPARTMENT FOR FISCAL YEAR 2027.
GSDS CORE VALUES ARE INTEGRITY FIRST, SERVICE BEFORE SELF AND EXCELLENCE IN ALL WE DO.
WITH ME TODAY IS THE GSD SENIOR EXECUTIVE TEAM CHIEF OF STAFF, ENIT HOWARD, DEPUTY CHIEF POLICY OFFICER CALVIN CURTIS, ASSISTANT DIRECTOR OF PROPERTY MANAGEMENT, ANSEL ELLISON, INTERIM ASSISTANT DIRECTOR OF REAL ESTATE DESIGN AND CONSTRUCTION.
JAMES REDINGTON, DEPUTY ASSISTANT DIRECTOR OF SECURITY, JD WALTMAN, DEPUTY ASSISTANT DIRECTOR OF PROPERTY MANAGEMENT, DAVID SIMMONS, EXECUTIVE STAFF ANALYST, SHELLY CARTER WHO OVERSEES THE ENERGY RESILIENCE AND EFFICIENCY PROGRAM, EXECUTIVE STAFF ANALYST, RICHARD VELA AND MY ASSISTANT EXECUTIVE ASSISTANT STEPHANIE LAKE.
THIS SLIDE SHOWS GSDS CURRENT ORGANIZATIONAL CHART.
NEXT, GSDS OPERATIONS ARE DIVIDED INTO FOUR CORE PROGRAMS OF SERVICE, PROPERTY AND ENVIRONMENTAL MANAGEMENT, DESIGN AND CONSTRUCTION AND REAL ESTATE SERVICES, SECURITY MANAGEMENT AND ADMINISTRATIVE FINANCIAL ENERGY MANAGEMENT SERVICES WITH THE PRIMARY GOALS OF REDUCING COSTS AND CONTINUE TO IMPROVE OUR LEVEL OF CUSTOMER SERVICE.
UNDER THE SHARED SACRIFICE BUDGET REDUCTION, THE GENERAL SERVICES DEPARTMENT REDUCED OUR BUDGET IN THE AMOUNT OF $268,000.
THIS INCLUDED A REDUCTION OF $219,000 IN CONTRACT SERVICES AND $67,000 IN PERSONNEL SAVINGS.
THIS TABLE SHOWS HOW GSD STRATEGIC PROGRAMS ALIGN WITH THE MAYOR'S PRIORITIES AND INITIATIVES AND THE PERCENTAGE OF OUR BUDGET DEDICATED TO EACH ONE.
FOR GOVERNMENT THAT WORKS 1% INFRASTRUCTURE, 92%, AND PUBLIC SAFETY 6%.
OUR PROPOSED PROGRAM EXPENDITURE BUDGET FOR FY 27 IS $230 MILLION.
THE BUDGET SERVICES DECREASED BY TWO AND A HALF PERCENT OVER FISCAL YEAR 26.
CURRENT BUDGET IN ADMINISTRATIVE SERVICES, THE DECREASE WAS DUE TO THE TRANSFER OF THREE PERSONNEL TO THE HUMAN CER RESOURCE DEPARTMENT.
IN ENERGY MANAGEMENT, THE DECREASE IS DUE TO THE PRICE CONTRACT ON THE ELECTRICITY BASE RATE FROM LAST YEAR AND FACILITY.
ELECTRICITY AND NATIONAL NATURAL GAS PAYMENTS ARE CHARGED BACK TO CITY DEPARTMENTS AND IN FACILITIES DESIGN AND CONSTRUCTION.
THE INCREASE IS DUE TO EMPLOYEE MARKET ADJUSTMENT BENEFIT OBLIGATIONS.
IN THE HOPE CONTRACT IN FACILITIES ENVIRONMENTAL MANAGEMENT, THE DECREASE IS DUE TO THE FILLING OF A VACANT POSITION.
WITH LOWER SALARY IN FACILITIES SECURITY DECREASES EXPANDED SECURITY COVERAGE FOR NEIGHBORHOOD LIBRARIES AND BARK FACILITY IN REAL ESTATE MANAGEMENT.
THE INCREASE IS DUE TO EMPLOYEE BENEFIT OBLIGATIONS AND HOPE CONTRACT REQUIREMENTS.
OUR ADMIN ADMINISTRATIVE SERVICES PROGRAM IS BUDGETED AT A $1.3 MILLION AND PROVIDES LEADERSHIP AND EXECUTIVE SUPPORT.
THE ENERGY MANAGEMENT PROGRAM PROVIDES FUNDING FOR THE CITY'S ELECTRICITY AND NATURAL GAS CONTRACTS AND IS BUDGETED AT $150.8 MILLION.
THE FACILITIES DESIGN AND CONSTRUCTION PROGRAM PROVIDES CAPITAL IMPROVEMENT PROJECT PLANNING AND MANAGEMENT FOR ALL DEPARTMENTS EXCEPT THE HOUSTON AIRPORT SYSTEM.
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THIS PROGRAM IS BUDGETED JUST OVER $8.5 MILLION.THE FACILITIES ENVIRONMENTAL MANAGEMENT PROGRAM PROVIDES FOR ENVIRONMENTAL CONSULTING SERVICES AS WELL AS MOLD, ASBESTOS AND LEAD REMEDIATION AND IS BUDGETED AT $2.3 MILLION.
THE FACILITIES MAINTENANCE PROGRAM HAS A BUDGET OF $53 MILLION AND PROVIDES REPAIR AND MAINTENANCE SERVICES FOR MULTIPLE CITY DEPARTMENTS, INCLUDING POLICE, FIRE, HEALTH, LIBRARY, FLEET, AND THE BARK LOCATIONS.
THE FACILITY SECURITY PROGRAM PROVIDES FOR SECURITY GUARD SERVICES AT CITY FACILITIES, MAINTAINS THE CLOSED CIRCUIT TV SYSTEM, ACCESS CONTROL, INTRUSION ALARM, AND INVESTIGATE STOLEN CITY ASSETS AND EMPLOYEE POLICY VIOLATIONS.
THIS PROGRAM ALSO SUPPORTS DEPARTMENTS WITH A RESPONSE TO ACTIVE SHOOTER TRAINING AND SECURITY ASSESSMENTS.
THIS PROGRAM IS BUDGETED AT $12.6 MILLION.
THE REAL ESTATE MANAGEMENT PROGRAM IS BUDGETED $540,000.
IT HANDLES THE ACQUISITION AND DISPOSITION OF PROPERTY ASSISTS CITY DEPARTMENTS WITH LEASING OFFICE SPACE AND MANAGES THE LEASING OF CITY OWNED PROPERTY.
THE DEBT SERVICE AND INNER FUND TRANSFERS PROGRAM IS BUDGETED AT $1.6 MILLION.
THIS BUDGET IS USED FOR THE REPAYMENT OF DEBT SERVICE OBLIGATIONS MANAGED BY THE FINANCE DEPARTMENT.
WE REDESIGNED THE KPI FRAMEWORK FOR FY 27 TO STRENGTHEN PERFORMANCE MEASUREMENT BY ESTABLISHING CLEAR BENCHMARKS, IMPROVING VISIBILITY IN THE TRENDS, AND ENABLING MORE ACTIONABLE PERFORMANCE INSIGHTS.
BOTH THE PREVIOUS AND UPDATED KPIS HAVE BEEN INCLUDED IN THE APPENDIX FOR YOUR REVIEW.
OUR PROPOSED PROGRAM EXPENDITURE BUDGETS FOR FY 27 INCLUDE $47.4 MILLION OUT OF THE GENERAL FUND, $7.9 MILLION OUT OF PROJECT COST RECOVERY FUND, $135.3 MILLION BUDGETED OUT OF THE CENTRAL SERVICE REVOLVING FUND AND 39.7 MILLION BUDGETED OUT OUR MAINTENANCE REPAIR AND REPLACEMENT FUND.
IN THE GENERAL FUND, 35.4 MILLION OF DOLLARS OF NON-PERSONNEL COSTS MAKE UP ROUGHLY 75% OF THE GENERAL FUND BUDGET IN THE PROJECT COST RECOVERY FUND, $309,000 OF NON-PERSONNEL COSTS.
MAKE UP ROUGHLY 4% OF THE PROJECT COST RECOVERY FUND BUDGET IN THE MAINTENANCE REPAIR AND REPLACE FUND $31.8 MILLION OF NON-PERSONNEL COSTS MAKE UP ROUGHLY 80% OF THE MAINTENANCE, REPAIR AND REPLACE BUDGET.
THE PROPOSED REVENUE BUDGET IS $191.1 MILLION, A DECREASE OF $10 MILLION, WHICH IS A DECREASE OF 5% FROM THE FY 26 BUDGET.
THE NEXT SLIDE WILL HAVE A BREAKDOWN OF THE REVENUE BY FUND.
OUR GENERAL FUND REVENUE IS BUDGET AT APPROXIMATELY $4 MILLION.
OUR PROJECT COST RECOVERY FUND IS BUDGETED AT JUST UNDER $8.3 MILLION.
OUR CENTRAL SERVICE REVOLVING FUND REVENUE IS BUDGETED AT $135.3 MILLION AND OUR MAINTENANCE REPAIR AND REPLACE REVENUE IS BUDGETED AT 43.3 MILLION, WHICH IS A DECREASE OF $1.6 MILLION OR 3.7% DECREASE.
NEXT SLIDE OF OUR REVENUE HIGHLIGHTS, THE BIGGEST DRIVER HERE IS THE ENERGY MANAGEMENT WITH DROPS BY ABOUT $8 MILLION OR 5.6%.
THAT'S MAINLY TIED TO THE ELECTRICITY PRICING CHANGES AND HOW THE COST OF OUR CHARGE BACK TO THE DEPARTMENTS.
THIS CONCLUDES OUR FY 27 BUDGET PRESENTATION AND THANK YOU FOR YOUR CONSIDERATION.
THANK YOU CJ, APPRECIATE YOUR WORK.
THANK YOU FOR THE PRESENTATION.
UM, WHERE ARE WE IN TERMS OF NUMBERS FOR DEFERRED MAINTENANCE FOR ALL CITY FACILITIES? APPROXIMATELY $864 MILLION.
AND THAT INCLUDES THE CHANGES WITH SIX 11 WALKER AND THAT'S EVERYTHING.
NOW THAT WILL CHANGE ONCE THE UM, ONCE WE GET THOSE BUILDINGS OFF OUR PORTFOLIO, SIX 11 WALKER DOES NOT FALL UNDER GSD 1200.
TRAVIS WOULD BE, UM, ONCE WE GOT RID OF THAT ASSET, IT WOULD REDUCE WHATEVER THAT AMOUNT OF DEFERRED MAINTENANCE WAS.
SO THIS NUMBER RIGHT NOW INCLUDES 1200 TRAVIS? YES.
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SO THAT WAS MY CONFUSION WITH FLEET, IT'S YOU THAT DOESN'T DO THE PUBLIC WORKS BUILDINGS, RIGHT? CORRECT.THEY DO THE FLEET BUT YOU DON'T DO YOU DO EVERYBODY ELSE'S? NOT AIRPORTS.
NOT AIRPORTS AND NOT PUBLIC WORKS.
I DO WANNA WELCOME MY VICE CHAIR COUNCIL MEMBER MARIO CASTILLO TO THE HORSE SHOW HORSESHOE, UM, COUNCIL MEMBER FLICKINGER.
HOW MUCH VACANT LAND DO WE OWN? DO YOU HAVE AN IDEA ON THAT? NO, I DON'T HAVE AN IDEA, BUT I CAN GET YOU THAT ANSWER.
I MEAN, IF, IF WE WERE ABLE TO SELL THAT, NOT ONLY WOULD WE GET THE MONEY FROM IT, BUT IF WE SELL IT TO A PRIVATE ENTITY, IT'S NOW A TAX PROPERTY TAX GENERATOR.
I MEAN, SO WHATEVER WE COULD DO WITH THAT I THINK WOULD BE A HUGE OKAY.
I WILL SAY ON THAT COUNCIL MEMBER FLICKINGER, I KNOW THAT, UM, I THINK THERE'S AN, AN ENGAGEMENT WITH PAIGE GOING ON NOW OR ABOUT TO GO ON.
AND UM, THEY'RE GONNA BE LOOKING AT ALL OF OUR REAL ESTATE RIGHT.
AND ALL OF OUR BUILDINGS SEEING KIND OF AN OVERALL PLAN ON WHAT WE MIGHT HAVE TOO MUCH OF WHAT WE NEED, WHERE WE COULD CONSOLIDATE.
UH, I MEAN YOU CAN ELABORATE MORE ABOUT THE SCOPE OF WORK, BUT THAT'S PRETTY MUCH IT THERE.
UM, UM, LOOKING AT THE BIG PICTURE, LIKE YOU SAID, WHAT WE HAVE, WHAT WE COULD GET RID OF, YOU KNOW, YEARS AGO, FEW YEARS AGO WE OPENED THE ALE NEIGHBORHOOD CENTER TO PUT THREE DEPARTMENTS IN ONE FACILITY, WHICH UM, ALLOWED US TO TAKE A, UM, HEALTH FACILITY AND A LIBRARY OUT OF OUR PORTFOLIO AND TURN AROUND AND TRY TO SELL THAT LAND.
AND, AND WHAT'S THE STATUS OF THAT ENGAGEMENT? I MEAN IS THE WORK ONGOING NOW? IT'S ONGOING, YES.
AND WHAT, WHEN, WHAT'S THE TIMELINE FOR IT? I DON'T KNOW.
I KNOW WE'RE, UM, HAVING MEETINGS WITH THE, THE ADMINISTRATION, UM, AND WITH PAIGE.
SO, UM, AS THEY SAY IN THE MOVIES COMING SOON.
AND ON THE ENERGY, SO WE WERE JUST TALKING ABOUT THE ELECTRICITY CONTRACT WITH THE FINANCE DEPARTMENT AND THOSE PRICES HAVE GONE UP AND YOU'RE TELLING US THAT THE PRICES HAVE GONE DOWN.
SO I'LL LET UM, SHELLY CARTER ADDRESS THAT.
UM, SO FINANCE, ANDY MAYBE CAN SPEAK TO THIS SETS OUR BUDGET FOR THE ENERGY'S UTILITY RATES.
THEY HOLD THE ELECTRICITY SUPPLY CONTRACT.
THEY HOLD THE CONTRACT WITH CENTER POINT FOR NATURAL GAS.
UM, THEY PUT IT UNDER OUR DEPARTMENT, BUT THEY DO THE MARKET RESEARCH BEHIND THAT.
SO THAT NUMBER STOOD OUT TO ME AS WELL.
BUT FINANCE IS REALLY, YEAH, I MEAN I WAS JUST ASKING ABOUT, WE'VE GOT IN WHEN THERE'S AN ENERGY MANAGEMENT DIVISION OF FINANCE AND SO I WAS TALKING ABOUT THE $640 MILLION CONTRACT WE HAVE FOR ELECTRICITY AND YOU KNOW, WE'RE BUMPING UP AGAINST THAT AND SHE SAID THAT'S BECAUSE PRICES HAVE GONE UP AND THEY'RE GONNA HAVE TO COME BACK TO US TO, TO KIND OF GET, GET AN, GET ADDITIONAL FUNDS PUT ON THAT CONTRACT.
SO I WAS A LITTLE BIT, UH, CONFUSED BY YOUR, WHEN YOU STATED THAT YOUR ENERGY MANAGEMENT IS ACTUALLY, PRICES ARE DOWN, SO MAYBE IT'S JUST AN ACCOUNTING THING OR WE'RE DONE BECAUSE WE'RE USING THE WHOLE UH, CONTRACT.
GET THE MIC PLEASE IF YOU WOULD PUT THE MIC ON PLEASE.
IT'S GO DOWN THE PRICE BECAUSE OF USING THE OLD CONTRACT PRICE UNTIL THE NEW CONTRACT GONNA BE COMING.
THAT'S THE ONE GONNA BE INCREASED, THE NEW CONTRACT BECAUSE THIS CONTRACT'S ONLY TWO YEARS, I BELIEVE BETWEEN, UH, LAST YEAR AND THEN THIS YEAR.
SO THE PRICE, YOUR NUMBERS ARE BASED ON OLD RATES OR? YES, BASED ON THE OLD RATE.
I'LL, I'LL, I'LL PROBABLY THINK OF SOME MORE QUESTIONS AROUND THAT.
BUT, BUT THANK YOU FOR THAT AND UM, I APPRECIATE YOUR GETTING BACK TO ME SO QUICKLY ON, ON THE WRITTEN QUESTIONS THAT I SUBMITTED.
AND WE ARE ALWAYS CONCERNED ABOUT THAT $864 MILLION NUMBER, WHICH DOESN'T EVEN INCLUDE, I MEAN, WHICH WE WON'T HAVE TO WORRY ABOUT SIX 11, BUT THAT'S CARRIED ON THE, ON THE PUBLIC WORKS BOOKS.
ANY OTHER QUESTIONS FOR GENERAL SERVICES? UM, ALSO I THINK YOU HAD TALKED, UM, THAT THERE WILL BE, IT IS SEPARATE FROM THE PAGE WORK, BUT A FACILITIES ASSESSMENT, A PARKS RELATED FACILITIES ASSESSMENT.
SO I BELIEVE WE WERE ABOUT TO DO ONE FOR PARKS.
WE DID ONE FOR OUR ENTIRE PORTFOLIO WITH THE EXCEPTION OF PARKS AND HAS IN 22.
AND YOU'RE GONNA KICK OFF AND ONE FOR PARKS? YES.
SOON ON THE CITY OWNED PARK FACILITIES.
ALRIGHT, ANY OTHER QUESTIONS? WOW, THAT WAS QUICK AND UM, WE DO, DO WE HAVE SOME ANYBODY SIGNED UP TO SPEAK? WE DIDN'T HAVE ANYBODY SIGN UP.
I SEE LAURA GALLIER OUT THERE, SO I'M GONNA ASK
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HER TO COME UP FOR PUBLIC COMMENT.AND ALSO THANK YOU FOR YOUR WORK ON THE KPIS.
UM, COLLEAGUES, UM, YOU KNOW, WE'VE BEEN USED TO SEEING THEM DURING THE PRESENTATIONS.
HE DIDN'T REALLY GO THROUGH HIS, BUT THERE ARE SOME IN HIS APPENDIX TO THIS PRESENTATION ALSO IN THE BIG BUDGET BOOK.
UM, THERE'S, UM, IMPROVED KPIS.
SO FEEL FREE TO LOOK THROUGH THOSE.
MS. GALLAGHER, THE FLOOR IS YOURS.
UM, I WASN'T SURE WHICH DEPARTMENT TO ASK THIS QUESTION, BUT I DID SEE IN THE BUDGET THAT UM, THERE'S SIX PROJECTS BUDGETED FOR SOLAR TO CREATE, I DON'T KNOW, 150 MEGAWATTS OR SOMETHING OF SOLAR POWER.
AND WHEN I HEARD THEM TALKING ABOUT ENERGY PRICES GOING UP, I WAS WONDERING IF THAT'S THE SOLAR ENERGY, UH, PROJECTS IN THE BUDGET ARE MEANT TO MITIGATE SOME OF THAT.
ANYBODY OUT THERE WANNA TALK ABOUT SOLAR AND EFFORTS ON, ON THE SOLAR FRONT? THANK YOU LAURA.
YEAH, SO THE 150 MEGAWATT HOURS WE PUT IN IS FOR SOLAR WORK THAT'S ALREADY BEEN DONE.
UM, THAT WORK WAS A COMBINATION OF A CCO LOAN THAT RESTORED TWO PHOTOVOLTAIC SYSTEMS, ONE ON THE ANNEX AND ONE ON HOUSTON PERMITTING CENTER.
AND THEN AS WELL WE GOT A DONATION FROM SHELL FOR CASHMERE MSC TO BE OUR KIND OF FIRST RESILIENCE HUB PILOT.
THERE ARE ADDITIONAL GRANT FUNDED PROJECTS SLATED.
COST SAVINGS IS ONE STRATEGY, RESILIENCE IS ANOTHER STRATEGY.
UM, THEY WILL GENERALLY TARGET MULTI-SERVICE CENTERS AND MAYBE ONE OR TWO COMMUNITY CENTERS THAT WE USE TYPICALLY IN DISASTERS AS WARMING AND COOLING CENTERS.
ANY OTHER COMMENTS? OKAY, THANK YOU VERY MUCH COLLEAGUES.
WE GOT DONE EARLY TODAY AND TOMORROW.
UM, WE WILL HAVE, UH, STARTING AT 1:30 PM THE PLANNING DEPARTMENT, TWO 30 HOUSING, THREE 30 AIRPORTS.
AND AGAIN, THOSE, THOSE TIMES MIGHT SHIFT IF WE END ONE EARLIER, THAT'S JUST THE BLOCK WE HAVE.
SO SEE YOU AT ONE 30 TOMORROW.
WELL, I'LL SEE YOU AT ONE 30 TODAY,