This is good.

This is a good pace, guys.

Let's keep it going for all 23.

I'd like to welcome the vice mayor pro temp, Amy Peck to the horseshoe.

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 Quee.

I did not even look up.

I was reading my script.

Chris is in the back somewhere.

Okay.

There he is.

Hello to all.

So good morning, and thank you for the opportunity to present the budget for the General Services Department for fiscal year 2027.

GSD's core values are integrity first, service before itself, and excellence in all we do.

With me today is the GSD senior executive team, Chief of Staff Enid Howard, Deputy Chief Policy Officer Calvin Curtis, Assistant Director of Property Management Ansel Ellison, Interim Assistant Director of Real Estate Design and Construction, James Reddington, Deputy Assistant Director of Security, JD Waltman, Deputy Assistant Director of Property Management, David Simmons, Executive Staff Analyst Shelley Carter, who oversees the Energy Resilience and Efficiency Program, Executive Staff Analyst Richard Vailer, and my assistant executive assistant Stephanie Lake.

Next slide.

This slide shows GSD's current organizational chart.

Next.

GSD's 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.

Next slide.

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.

Next slide.

Next slide.

In administrative services, the decrease was due to the transfer of three personnel to the human 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.

In facilities design and construction, the increase is due to employee market adjustment benefit obligations and the HOE contract.

In facilities environmental management, the decrease is due to the filling of a vacant position with lower salary.

In facility security, this creases expanded security coverage for neighborhood libraries and bark facility.

Next slide.

The facilities design and construction program provides capital improvement project planning and management for all departments except the Houston Airport system.

This program is budgeted at just over $8.5 million.

Next slide.

The facilities environmental management program provides for environmental consulting services as well as mold, abestos, and lead remediation, and is budgeted at $2.3 million.

Next slide.

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.

Next slide.

The facility security program provides for security guard services at city facilities, maintains the closed circuit TV system, access control, intrusion alarm, and investigates 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.

Next slide.

This budget is used for the repayment of debt service obligations managed by the finance department.

Next slide.

We redesigned the KPI framework for FY27 to strengthen performance measurement by establishing clearance 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.

Next slide.

Our proposed program expenditure budgets for FY27 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 of our maintenance repair and replacement fund.

Next slide.

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.

Next slide.

The proposed revenue budget is $191.1 million dollars, a decrease of $10 million, which is a decrease of 5% from the FY26 budget.

The next slide will have a breakdown of the revenue by fund.

Our general fund revenue is budgeted 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 dollars, and our maintenance repair and replace revenue is budgeted at $43.3 million dollars, which is a decrease of $1.6 million dollars or 3.7% decrease.

Next slide.

Of our revenue highlights, the biggest driver here is the energy management, which drops by about $8 million or 5.6%.

That's mainly tied to the electricity pricing changes and how the costs are charged back to the departments.

This concludes our FY27 budget presentation, and thank you for your consideration.

Thank you, CJ.

Appreciate your work.

Vice Mayor Pro Tempeck.

Thank you, Chair.

Thank you for the presentation.

Where are we in terms of numbers for deferred maintenance for all city facilities?

Approximately $864 million.

And that includes the changes with 611 Walker and It's everything.

That's okay.

Yes.

Now that will change once the um once we get those buildings off our portfolio.

611 Walker does not fall under GSD.

1200 Travis would be once we got rid of that asset, it would reduce whatever that amount of deferred maintenance was.

Okay, so this number right now includes 1200 Travis.

Okay, thank you.

So that was my confusion with fleet.

It's you that doesn't do the public works buildings.

Right.

Correct.

Okay.

They do the fleet, but you don't do, you do everybody else's, not airports.

Not airports.

And not public works.

And not public works.

Okay.

I do want to welcome my vice chair, Councilmember Mario Castillo to the horse show horseshoe.

Um Councilmember Flickinger.

Thank you.

The city real estate.

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.

Okay.

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, correct?

I mean, so whatever we could do with that, I think would be a huge help.

All right.

I will say on that, Councilmember Flickinger.

I know that um I think there's an engagement with Page going on now or about to go on.

And they're gonna be looking at all of our real estate 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.

I mean, you can elaborate more about the scope of work.

But that's pretty much it.

They're 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 A-Leaf 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.

Okay, and what when what's the timeline for it?

I don't know.

I can get you that answer.

I know we're um having meetings with the administration, um, and with Paige, so um, as they say in the movies coming soon.

Okay, 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.

Help me out here.

So I'll let um Shelley Carter address that.

Okay, so I can't agree on the size of these as well.

Um, so finance, Andy maybe can speak to this.

That's our budget for the energy utility rates.

They hold the electricity supply contract, they hold the contractor 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 the when there's an energy management division of finance, and so we I was talking about the six hundred and forty million dollar 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 uh 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 up are down, so maybe it's just an accounting thing or down because we're using the whole uh contract.

Get the mic, please.

If you would put the mic on, please.

It's go down to price because I'll be using the old contract price.

Until the new contract gonna be coming.

That's the one gonna be increased the new contract because it's a contract, it's only two years, I believe.

It's in uh last year and then this year.

So your numbers are based on old rates or yes, based on the old rate.

Okay, okay.

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 6 11, but that's carried on the on the public works books, I suppose.

Okay.

Okay, any other questions for general services.

Um, I think you had talked um that there will be separate from the page work, but a facilities assessment, a parks related facilities assessment.

So I believe we're about to do one for parks.

We did one for our entire portfolio with the exception of parks and HAS in 22.

Okay, and you're gonna kick off on one for parks soon on the uh city owned park facilities.

Okay, okay.

Great, keeping posted on that.

All right, 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 her to come up for public comment.

Thank you very much, 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.

Okay, Miss Gallier, the floor is yours.

Hello, thank you everybody.

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.

Anyone out there want to talk about solar and efforts on the solar front?

Thank you, Laura.

Good question.

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 CICO loan that restored to 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.

Okay, thank you very much.

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 p.m.

the planning department, 2 30 housing, 3 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 1 30 tomorrow.

Well, I'll see you at 1 30 today.

Thank you.

We're adjourned.