Good morning.

The time is now 8 15, and we're gonna go ahead and start this fiscal committee meeting to order.

As was noted, we have a number of um things on our agenda today, and so we have moved this meeting up from 8 30 to 8 15.

So, first is a resolution approving a one-year renewal of enterprise resource planning known as ERP System Contracts with Oracle America Incorporated for SAS software as a service and Oracle Guided Learning and the amount not to exceed 1,11,539.33 cents.

Do I have a motion?

So moved.

Support.

It's been moved and supported, Miss Claren.

Uh good morning, commissioners.

This is this is simply um renewing our, yeah, like it's a SAS agreement and OGL.

We entered into a three-year agreement three years ago with two one year renewal options.

So this is just continued use of the Oracle product.

Um as far as how this the system is going.

Uh we we did provide commissioner report in um I believe that was November for this body, but um again, just chugging along still, still using the product, still happy with it.

Yep.

I think um Commissioner Kilgore had a question.

Sure.

Yes, uh, thank you, madam chair.

Um so uh Miss Claren, I have uh heard of some significant challenges with Oracle as we pass uh something that's over a million dollars for this service.

I'd like to hear your feedback on uh how we are going to remedy uh some of those hiccups and what plans going forward to make sure we're processing payments and uh making sure that our city staff are supported through this system as we uh allocate more funds for it.

Absolutely, and um later on we have another uh related commission item, but um it what what what is going on with Oracle right now is we know, like as I reported in November, we didn't have a great implementation partner, so we're grappling with them, and um we're still relying on them as far as deployment of the bridges solution, which connects which is the interface between all the modules.

Um what we what we have done as a countermeasure so far is hired Iteria, which is a for lack of a better fur term, fix it firm.

So we've been working with them for the past two months.

They actually um helped us.

We had issues with our W2s.

Sure, you heard about that.

Issues with W2s, we had issues with 1099 reporting.

Um high street was not there for us, could not deliver, and it was actually when um Iteria was on site working with us on um our outstanding issues, things like that.

They're like, oh well, have you thought about this or didn't why are why are they doing it that way?

And they actually plugged us through the 1099 process, helped us out with that, helped us um realize some possible savings with um being able to process the W-2s right inside of Oracle, which our implementation partner high street did not advise us to do.

So we're already realizing that um, oh, you know, these guys know what they're doing, they've delivered on these two big things for us.

Um what we have done to um date though with Iteria is they have delivered um all of our configurations.

We were not given a great roadmap basically of where everything is in the system and how it was built.

I high street has never given us that, even though that was part of a deliverable from them.

So we um that was one thing IT is like we have to start get everybody at ground zero how we're built, and then they have provided a document.

Actually, last week we had a meeting with them where they walked through some of the configurations as well as some of their advice for here's how we would approach that.

So we do have this going on in the background.

Um, I'm meeting with SME leads as well as um we have an executive oversight team to talk through ITRI's recommendations.

They also examined our outstanding tickets with high street, and they're like, Do you want high street to do this?

Or we could pull down some of this stuff.

So we're we're trying to, you know, work through that on what we're gonna still leave on the table for high street because they are still under contract with us, but some of this other stuff that they can start pulling down was great.

Um, and it's less expensive through Iteria, ironically.

So that's that's a great thing.

So thank you so much for walking through that.

And are we so the contract with High Street is for how long?

Is there a way that we're gonna do it?

High Street's also a three, I think it was a three-year term with a two one-year renewals.

One thing um high street supports you.

I mentioned bridges because that's the main thing that's attaching us to high street right now is this bridges um software that um they use to connect all the modules.

We saw that as a pro when we went through um our RFP process, but uh as a result, because they supported as proprietary, we're attached to them.

So one thing high street is looking at is a way to unravel us from that, so maybe we can move away, you know.

You know, so we're we're making moves to to slowly unpeel that.

Um, and uh if you would like, I could, you know, once I'll talk to city manager what great timing would be for me to return and give you another update because this is a lot of money and it's important.

It's our it's our management of inventory, it's our human resources, it's our GL, and it's it's all the things.

So maybe within uh a couple months, I return and let you know where we're at with ITER, and um they are going to write up a statement of work for things going forward.

So I may have to return to this body anyway to talk through that uh for approval.

So yeah, let's let's let's keep talking.

Thank you.

Thank you so much for your feedback, and I think those sound like great steps.

Um it reminds me of doing nonprofit work and doing CRMs and Salesforce, and then we moved to this thing called NEON and no one knew what it was, and there was all the actual things and tricks you could pay for, and those didn't really work.

So I understand it's a sort of uh process that you have to keep working through.

So thanks for your work on it, and I'll look forward to hearing more in a few months.

Thank you.

Um hearing seeing no other questions, all those in favor.

Aye any opposed.

Resolution carries item number two is a resolution of proving contract with management business solutions to provide payroll talent operations and program management of the city of Grand Rapids Grow 1000 Summer Internship Program in partnership with our community's children for amount for an amount not to exceed 500,000 dollars.

So moved support.

Moved in supporting Ms.

Claren.

Yes, so uh this is also an well, this is anything this year.

We've um handled uh management or I should say the administrative management of Girl 1000 in-house, which impacted uh departments, HR as well as fiscal services, you know, issuing paychecks, getting all the documentation we need, while um OCC, our communities children has run this program this year.

So this is the item that's related to what I was talking about with ITER.

Um, because we are, you know, we want all hands, you know, making sure we're focused on getting the ERP corrected and right.

Um, this seemed like a good year to try outsourcing our, you know, so things like the payroll office and HR, um, and some of the other departments that got involved in entering the payroll for so many so many participants, which is great, but it's a tremendous burden.

It's a six-week program that that was a tremendous administrative burden.

So um the MBS will be doing things like collecting the applications, um, the pre-employment documentation, you know, time sheets, payroll, all that stuff.

Um, our community children still oversees the pro the program, um, works with placement of these children and um does the day-to-day operation still.

So, unfortunately, I couldn't give uh we have um director Harris uh in the in the crowd here.

Um, I asked her to attend in case there were any specific questions, but this was more um, you know, just it made sense this year to try outsourcing just because of the burden.

Um, none of the program funds thing donations, things like that we get from businesses are going to be used to pay for this.

The city's gonna absorb the outsourcing cost.

Um we wanted if people are gonna donate to grow one thousand, we want to make sure that's gonna be used towards a wage.

Um the um 500,000 that seems large, but that also includes the wages of these participants, so because they're handling it all, so they're just gonna issue us uh an invoice, write the check, and then they pay the pay the people.

So um that's basically what's going on with this one.

But I'm happy to take questions or director Harris is here if you guys have uh certain questions for Girl 1000, she's just getting it kicked off.

So uh we're excited.

Uh estimating about 175 participants so far this year, but or that's our goal, I think.

Yep.

So would you like to come forward, Miss Harris?

Or you've seen a lot of iterations of this program.

So I just want to make sure if you want an opportunity to say anything.

Yeah, absolutely.

Thank you.

Um, thank you, Molly.

Thank you, uh, city commissioners uh and city staff.

So we are in our seventh year, seventh interaction iteration of this program, and so we are seeking young people aged uh 15 to 24 to participate for a six-week summer youth employment program.

Um, and so we partner with businesses and city departments uh as work sites.

So we're also looking for work sites to to sign on for this uh uh summer opportunity.

So applications are online now with management business solutions, and uh as of yesterday, we already had 212 um applications.

So we're anticipating a great application pool, and this year we're doing an interview process um to really evaluate the potential of success for our young people.

Thank you so much.

Colleagues, questions on this item.

I'll just say yeah, I think that you know, I know this was done in house, but this is a very time constraint process.

You're dealing with people where it's their first opportunity.

How do we create an experience for them when we have all these other things that we're pulling on?

So I'm um excited to hear how this process goes this year.

So I'll call the question.

All those in favor?

Aye.

Any opposed?

Resolution carries item number three.

Thank you, Ms.

Harris and Molly, um, Miss Claren.

Item number three is a resolution approving a renewal of a three-year professional services agreement with Plant Moran PLLC for auditing services for 246,345 dollars for the fiscal year ending June 30th, 2026, to in the amount of 253,770 dollars for fiscal year ending June 30th, 2027, and 261,390 for the fiscal year ending June 30th, 2028 for a total amount not to exceed 761, uh 505 dollars.

Do you have a motion?

So moved.

Support.

It's been moved in support, Miss Claren.

Uh this is simply uh an extension of her work with Plant Moran.

Um we decided not to do an RFP on this round just because of the things going on with the ERP.

Um they know us and um are you know already aware of our struggles, things like that.

So we thought it made sense to um go ahead and extend do an extension and maybe in the next round do the RFP just to go out for bid again.

Um they've been a great partner, and uh yeah, they you know, I believe we we took them on in 2017, and it's just been a great relationship, so it's just an extension.

Thank you.

Um, colleagues, questions on this item.

Hearing none, all those in favor?

Aye.

Any opposed?

Resolution carries.

Item number four is a resolution authorizing a budget substitution for 220,000 for park capital projects.

Do you have a motion?

So moved.

Support.

Miss Claypool.

Good morning, Laura Claypool with the parks department.

Um, what you have before you is an approval for a budget substitution due to some recent bids coming in um slightly higher than the original estimates at both Riverside Park and then um some trail work along Plaster Creek and Canushe were just requesting a substitution both in the Capital Parks Capital Fund and the Parks Bond Fund.

Questions, colleagues?

Everything is costing more.

I know it is.

We navigate, we're nimble.

Yes, thank you for this update.

All those in favor?

Aye.

Any opposed?

Item carries.

Thank you.

Thank you.

Um item number five is our bid list resolution for March 31st, 2026.

Do we have a motion?

So moved.

Support.

Ms.

Claren.

Okay.

I'm handling all business today, I guess.

Um okay.

So for the bid list, it's just five items today.

Um, all fairly routine in nature.

The one thing that I will highlight is the number five uh resource recycling systems.

We are developing a compost operations business plan for the public works department.

So that's that's just something I wanted to lift up.

Um if there are any questions myself, or the departments are here to answer.

Thank you.

Questions on other items on the bid list?

I feel like John wants to talk.

You good?

No, no, unless there's questions.

That's it.

You're gonna get a pass today, Mr.

Gorney.

It started raining, it's no longer snowing.

Uh, everybody's happy again.

Well, Chair, yes, as long as he's here.

I will say that I attended the um the compost public engagement at Sibley Elementary, and so there it is good to see this on the bid list in the business plan um modeling and all that going forward.

So thank you for your service in the into the department.

Do you do you want to add anything?

I don't want to cut you off if you do want to add anything.

Okay, we'll all right.

Um hearing no other uh questions or comments.

Um, all those in favor?

Aye.

Aye.

Any oppose that resolution carries?

Thank you.

Item number six is our ordinance amending section one of the budget budget ordinance 2025-11 for fiscal year 2026.

Amendment number six.

So moved.

Support and support it, Miss Claren.

So uh usually this time of year we freeze um budget amendments because we're formulating the next year's budget.

Um, stupendous lift for the budget office, but um this year we did make an exception for a few, so I'll just go through them quickly uh with the police department.

They have the Michaels funding, it's a recruit stipend 100,000.

Um that's just over in the police grants fund engineering department.

We have um an appropriation related to the Grand River Edges Trail East.

Um that's over by the Grand Rapids Eastern Railroad to Ann Street.

Um 2.4 well, just over 2.4 million, the capital improvement fund.

Um our downtown improvement district, uh the snow melt fund appropriating 50,000 there in the downtown improvement district snow melt fund.

And then for the fiscal services department, um this is a carry forward from fiscal year 2025, a little over one million dollars.

We did the the item last fiscal year, had the budget in place there, but um they didn't invoice us till now.

So um this is this is our old legacy system A360.

This is just to keep it um live um as far as a resource for the departments to be able to go back, pull pull reports from there, things like that.

We have we wanted to keep the lights on um until October.

So uh this is just takes care of that.

Thank you.

Any additional questions on this item?

Hearing and seeing none.

All those in favor?

Aye.

Any opposed?

That uh that item carries.

Next, we'll move on from our resolutions and ordinances to our Comptroller's warrant report for the period of March 3rd, 2026 through March 16, 2026, and the amount of 37,432,396 and monthly travel report.

Mr.

Comptroller.

All right, good morning, commissioners.

Uh, for the period referenced, uh cash payments were released totaling approximately 37.4 million dollars, which includes just under six million dollars for uh employee payroll related payments and approximately $883,000 for income tax warrants in terms of quantities $6,721 checks and electronic payments uh were were issued, or excuse me, income tax refunds were issued, and $1,235 uh checks and electronic payments uh were issued.

Uh these funds were issued for payment, uh not by individuals uh in the city compontroller's office and not in accordance uh with the city charter.

Also included here this morning is the uh February fiscal year to day travel report.

Uh this report is showing um approximately 1.2 million dollars spent on a uh 2.3 million dollar budget or about 53 percent uh of the uh overall budget.

And that concludes uh both uh the reports that I have this morning.

Thank you, colleagues.

Questions for the comptroller, thank you.

That's been received and filed.

Item number eight is the treasurer's report for the period of March 4th, 2026 through March 17, 2026.

Mr.

Treasurer.

Good morning, commissioners.

Um, with the report, I sort of break it up a little bit more in little subsections for you and different snippets because I I think we all um pick up those snippets a lot easier and then seek other understanding later as opposed to packing it with a lot of um concrete detail on some of this because I know that uh commissioner knight would always say, I I know you're telling me this commission report, but I don't know what to ask you.

So I'm trying to make it a little bit more uh receptive and and easier to read.

Um with the report today, uh the federal policy on interest rates is still sitting at 3.5 to 3.75% uh right now with the different things that are going on uh globally and locally.

Um they're not expecting to have a rate hike, probably for or rate decrease and potentially rate hike um through the rest of 2026.

So the numbers aren't coming in to see inflation go down.

In fact, it went up.

We're waiting for some job reports coming up pretty soon.

Um the conversations that uh Fed Chair Powell and others um, especially uh President uh Goldsby and the Chicago Fed as the as they're talking, it's not likely that there's going to be a any movement on rates right now until they see more concrete evidence.

Um I'm more concerned that we're gonna see inflation keep ramping up because we're seeing it at the pumps right now.

We're seeing you know 390, it was at Meyer this morning when I drove by.

They're talking about four is the is the norm across the country right now.

That's impacting all of our budgets.

That's impacting all of our pocketbooks.

Um, not to mention the fact I think I I went through a local grocery store and was shocked to find no ground beef.

Um that was really concerning to me because there were there are different things happening in the beef industry as well and sourcing stuff out.

So I think there's a lot of things that are impacting us right now.

It's not one thing is tipping anything over right now.

It's a lot of little things.

Um, well, there's one big thing, but lots of little things that are really impacting our local economy, local group.

In fact, one of the things that I I found interesting is we're talking about our growth and development within the city of Grand Rapids with the amphitheater, the parking garage, the soccer stadium, another parking garage.

Um, and now here comes a report on how viable is the three towers project when you're looking at condos that are gonna be over a million dollars.

How is you know it it was just and that was just published in MLive.

It was just uh it was there this morning when I opened it up.

So, you know, the powers that be that run these big projects, I have to trust they know what they're doing because they're placing their money into that, right?

But again, it's are are you gonna grow too fast or grow too slow, or when's the right timing?

You know, we were blessed in 1994 when Van Andel Arena was the ground was broken, and that really was the anchor that really spurred the development within our community.

It's now 30 years later, and now these are our new anchors that are being put into our community to keep it vibrant in the long term.

Um, it'll be interesting to see how those projects come along and grow and develop.

Um we haven't even had our first concert yet.

So we don't, and and we're we're we're gonna be in this this phase of feeling things out and and needing to add different resources to make sure that everybody's sees that this vibrant community is really taking steps to to continue that growth and development because we are a center that people look forward to coming to.

I have a conference in August where the Michigan Municipal Treasures and the Association Republic Treasures of the US and Canada, which I'm members of both, will be here for their fall conference.

They're doing a combined conference in town.

And the number of people that are reaching out to me to say, hey, what's the concert schedule?

You know, I go, so it's kind of interesting when you could go to either five-finger death punch or Hillary Duff.

So there's definitely a contrast there, but they're also asking me for um what other things to you know, go to Meyer Garden, the Japanese garden is phenomenal.

Here are the new restaurants that are in town that you want to check out.

And so, you know, people are looking at Grand Rapids, it's easy to get in and out of your airport, it's easy to get downtown.

It's it's something that they look forward to coming to our community, and I think that's what speaks volumes because these are these are folks that are coming from across the country, it's not just Michigan.

We have a large contingency from Illinois, Nevada, Texas, Oklahoma that are all gonna be in this area because it's a pretty strong organization.

Uh and to have a combined conference means we're pulling more people to come downtown to visit.

So we're excited about that coming up in the middle of August.

And I haven't gotten my five-finger death punch tickets yet, but I'll be there because I it's a it's a band I like.

But we're really excited about the the way the community is growing, but there are going to be challenges.

And I as I was talking to uh Miss Claren the other day, is um we're with inflation being sticky and higher, we're gonna see where's the scope of our projects going to be, and how much is that going to increase if it's a two-year project?

So we really have to pay attention to those types of cost factors and scope creep on any of your major projects.

Umflation is there.

So, you know, we're we try our best to get that three-year contract in place for any of these services so we can avoid that scope creep.

But again, when it comes to construction engineering and those types of costs, it can turn on a dime.

It really can.

I mean, I see it with just simply our mail services because at four dollars a gallon for gas, I get a fuel surcharge for people that are moving our our information around the city for our couriers.

So all those things play a role, and that's gonna impact some budgetary pressures on myself when I'm looking at my budget to make sure I'm trying to control the cost as best as I can.

So as you enter that budgetary process right now, that's one of the things to think of.

You know, how are how are these inflated costs going to impact us?

Not just this this year, but remember it's this year, and it builds upon next year and the year after that.

So, you know, we just came out of a three-year six-year period of time where costs went up 22%, and our paychecks went up 18.

So, you know, we're gonna have that balancing act now for quite a while.

I don't see it solving itself anytime soon.

Um we're looking at our portfolio as such that um we're looking at what's the right place to start placing our monies.

Um, we are actively looking for bonds that Mishta has is offering in the affordable housing space, and that's something that when we see those come up, those are federally taxed bonds, and we want to be a player in that because it supports the overall goals of the city commission that and the community to see affordable housing raised.

The other ones we're also benefiting right now from short-term interest rates are still higher, and so we're keeping some of that money really short because of the fact that we don't know what's coming up.

And so we're keeping some of that money really short because of the fact that we don't know what's coming up.

We don't know if we're gonna have any hiccups or or we need the flexibility.

But with our portfolio right now, we are looking at $698 million.

Now that's down from roughly $750 million not too many months ago.

A lot of it is the bond financing where we see soccer stadium coming down and other things, but we're our pooled funds are also diminishing as well.

So we're seeing spend down, and we should see that this time of year because we don't have the property tax income.

You know, we get that in July, and we you see the spike and a spend down, and that's what we're we're watching right now and being very vigilant to make sure that we have uh plenty of liquidity to cover any of the operations we have through the end of the fiscal year until the next property tax round comes in.

So we do have six hundred and ninety-eight million dollars in funds, and we're earning over 3.25%.

Thank you, Mr.

Treasurer.

Thanks for putting that into as my colleagues said, you know, just some additional context.

Um, colleagues, questions?

Yes, Commissioner.

As we enter into budget season and we're looking at potentially flattening of income revenues and some increased cost pressures, and you're talking about the our pooled funds.

Can you just give like a high level overview of what that might mean in terms of what we should keep in the back of our mind and the public should know in terms of like we you know, we're gonna have a 700, I don't know, I'm guessing 50 million dollars dollar budget, but we have 600 million in the bank, and just like how that you talked about the spike and all that.

So just how when people say, Oh, we've got money, do we?

Well, I want to be very cautious when I say this because realize that the money we have in these in this the six hundred ninety-eight million dollars, you're you're looking at almost you've got 70 almost 80 million dollars for just bond monies that are dedicated to specific projects.

You can't touch that, right?

That that's just off the table.

Um in two weeks, I'm gonna I think it's in two weeks.

I'll be back in front of you to show you the type of interest we earn on that money because right now when we put those bonds out there in the work we do, brings in another three to five million dollars of interest earnings that these projects can use for the can their contingency plan.

The other piece when we look at Secretary of Perpetual Care, that doesn't change.

That sits there, it's it the earnings on that are what cemetery can use to fund maintenance and repairs and whatnot.

We look at our pooled funds, those are all department funds.

They are every single fund balance that's out there for every single department.

It's not just a pool that we can start grabbing from.

I can't go grab water sewer balances, I can't go grab others to pull in.

Each of those departments has plans for those monies, right?

Whether it's a general fund, a water, mobile gr or any other department, they have plans for those funds.

That's their savings account that they're using to fund their next operations and large project plans.

So it's not like a free source of money that we can take and plug and play to any type of of item that we want to use it for.

And I'll just end um because we do have um the meeting starting.

Thank you for the question and for the um response.

We'll get through that process and we'll talk through about some of the things that were done, you know, in the in 2008, 2009, like our budget stabilization fund.

Um we have as mentioned was their capital improvement fund.

So there's a lot of guardrails that we put into place that you know I know we'll continue to talk about as we go through this process.

So thank you.

And with that, we're adjourned at 843.