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SESSION OF THE WACO CITY COUNCIL. AND WELCOME TO ALL THE PEOPLE GATHERED HERE IN THE BEAUTIFUL DOWNTOWN WACO AND THE BOSQUE THEATER GALLERY. IT'S A NICE LITTLE CROWD OUT HERE TODAY. GOOD SEEING YOU, CHARLES. GOOD TO SEE YOU OVER HERE IN THE FRONT ROW. GOOD CROWD.
EVERYBODY HERE. WELCOME TO ALL THE VIEWERS AT HOME WATCHING ON THE WACO CITY CABLE CHANNEL.
THANK YOU ALL FOR JOINING US HERE TODAY. AND I'M I'M MAYOR JIM HOLMES. I'M JOINED ON THE DAIS HERE TODAY BY COUNCIL MEMBERS ISABEL LOZANO, JOSH ROOD, DARIUS EWING, GEORGE CHASE AND MAYOR PRO TEM ANDREA FAIRFIELD ALSO JOINED ON THE ADJACENT DAIS. OVER HERE BY SENIOR CITY STAFF. WE HAVE BRADLEY FORD, OUR CITY MANAGER. HE'S HERE TODAY WITH US. WE HAVE CHRISTIAN HAMILTON, OUR CITY ATTORNEY OVER THERE ALSO, AND OUR FAVORITE CITY SECRETARY, MICHELLE HICKS, ON THE END OVER HERE, THE PEOPLE'S CHAMP, THE PEOPLE'S, THE PEOPLE'S SECRETARY. WE ARE HAPPY TO HAVE EVERYBODY HERE. MERRY CHRISTMAS EVERYBODY. THIS IS OUR LAST MEETING BEFORE CHRISTMAS. YOU CAN SEE THE FESTIVE ORNAMENTS OUT HERE IN THE TREE BACK HERE.
SO IT'S WE'RE HAVING A GOOD TIME. WE'RE GOING TO START THE MEETING TODAY WITH A MOMENT OF SILENCE. OKAY. THE FIRST ITEM OF BUSINESS TODAY IS THE RECOGNITION OF WORK SESSION
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SPEAKERS SECRETARY MICHELLE, DO WE HAVE ANY CARDS TODAY? NO, MAYOR, WE DO NOT HAVE ANY REGISTERED SPEAKERS. NO CARDS. THEREFORE WE WILL. IS THERE ANY REQUEST FOR SPEAKERS OUT THERE? NONE. ALL RIGHT. WE'RE GOING TO NO REQUEST TO SPEAK. WE'LL NOW RECESS THE REGULAR SESSION CONVENED IN THE WORK SESSION WITH A REPORT FROM OUR CITY MANAGER, BRADLEY FORD. THANKS, MAYOR AND COUNCIL. IT'S BEEN A MINUTE SINCE I'VE BEEN WITH YOU, SO IT FEELS GOOD. VERY FESTIVE.THANKS FOR ALL THE DECORATIONS ON MY RETURN. A COUPLE, A COUPLE MORE LEFT. COUNTING DOWN.
WHO'S COUNTING? JUST SAYING. THERE'S OUR LAST MEETING OF 2025 AND JUST WANTED TO LET YOU KNOW. COUNCIL AND MAYOR, WE HAVE NOW CONSIDERED AS OF THIS EVENING ABOUT 1000 PRESENTATIONS, PUBLIC HEARINGS AND RESOLUTIONS IN THE WORK OF DOING THE BUSINESS AND SERVING OUR CITY. AND SO ALMOST MADE IT TO A THOUSAND AND LOTS OF LOTS OF GREAT THINGS HAPPENING FOR THE BENEFIT OF OUR COMMUNITY THIS YEAR. DO HAVE A COUPLE OF EMPLOYEE RECOGNITIONS TONIGHT.
WANT TO RECOGNIZE SOME GROUPS? FIRST, I HOPE EVERYBODY MADE IT OUT TO OUR ANNUAL WONDERLAND FESTIVITIES. TENS OF THOUSANDS OF WACOANS JOINED US. YES, YES. YEAH. EMPTY. IT WAS. IT WAS VERY SAFE. SHE MADE IT DOWN SAFELY. DID NOT RUN OVER ANYBODY. WE HAD A GREAT GO PRAYING AT THE TOP THERE. NO, NO, THAT'S HOW HARD. THAT'S HOW HARD HE WAS. ANTHONY WAS DOWN AT THE BOTTOM LIKE PUSH HER HARD. I'M LIKE NO NO NO NO NO NO NO. I WAS LIKE, OKAY, WE'VE SEEN THAT BEFORE. WE HAD FIREWORKS. WE HAD THE PARADE WITH LOCAL VENDORS, RIDES AND FAMILY FRIENDLY ACTIVITIES. I JUST WANT TO SAY THANKS TO THE PARKS AND REC TEAM THAT EVERY YEAR DELIVERS THIS EVENT, WHICH IS SUCH EXCELLENCE, AND EVEN ADDED A FEW NEW ELEMENTS THIS YEAR WITH LIGHTING DOWN AUSTIN AVENUE. I THOUGHT THAT WAS A GREAT, GREAT NEW ADDITION AS WELL AS SOME NEW TREES. SO SPECIAL THANKS TO JONATHAN AND MEGAN AND THE EVENTS TEAM, EVERYBODY IN PARKS, OUR EMPLOYEE ENGAGEMENT COMMITTEE WHO PLAYS A ROLE IN THAT AS WELL, OUR FRIENDS AT CITY CENTER WACO AND OTHER PARTNERS THAT HELPED MAKE THIS A REALLY SPECIAL OPENING EVENT TO A HOLIDAY SEASON. OKAY, CITY MANAGER FORD, QUICK QUESTION.
THE LIGHTS THAT ARE ON AUSTIN, ARE THEY HOLIDAY SPECIFIC? WELL, I THINK LONG TERM WE'D LIKE TO PIVOT THEM AND RUN THEM OVER THE STREET. YEAH. BUT FOR NOW WE'RE KIND OF LIKE THEM. WHAT DO YOU THINK. YEAH. YEAH. BUT LONG TERM I THINK WE WANT TO PIVOT THEM AND RUN THEM OVER IS WHAT THE PEOPLE SAY. YEP. IT'S A NICE TOUCH FOR SURE. ABSOLUTELY. NEXT. ARE YOU LEAVING THIS. OH THIS IS THE THIS IS GREAT. I THINK MOST OF US WERE OUT THERE AT SOME POINT OVER THE WEEKEND AND THE LIGHTING WAS FANTASTIC, GREAT CROWDS AND JUST SPREAD OUT ALL OVER THE PLACE. SO YEAH, VERY THANKS AGAIN TO JONATHAN AND THE TEAM AND EVERYBODY WITH PARKS AND REC ON, ON PUTTING TOGETHER A REALLY FUN WEEKEND FOR EVERYBODY. APPRECIATE PRO MOVE HAVING THE THE BIG SCREEN OUT THERE WITH THE SEC CHAMPIONSHIP ON IT ON SATURDAY.
A LOT OF DADS GATHERED AROUND AS THEY WERE REALLY APPRECIATIVE TO GET OFF THAT TRAIN THERE. WE WANT THE FULL FAMILY. YES, YES THAT'S IT. A COUPLE GRANDPAS OUT THERE WATCHING. IT WAS A GOOD TIME. BLESS YOU. BLESS YOU. OUR SECOND HIGHLIGHT WANTED TO MAKE SURE TO NOT MISS THIS TIME. IS REAL PROUD OF. SHOW OFF THE NEW WELCOME CENTER, THE WELCOME
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CENTER. I KNOW WE HAD TWO EVENTS OVER THE LAST COUPLE OF WEEKS. THIS FACILITY, IF YOU'VE NOT SEEN IT, IS LOCATED NEXT DOOR TO THE MARRIOTT AC HOTEL, CORNER OF SIXTH AND MARY AND IT'S JUST BEAUTIFUL. JUST SUCH A WELL DESIGNED SPACE TO ORIENT AND INSPIRE VISITORS THAT ARE COMING TO WACO AND EVEN SOME LOCALS. I'M HEARING A LOT OF LOCALS HAVE MADE IT THROUGH RECENTLY AS WELL. JUST REAL PROUD OF THE WORK. ASSISTANT CITY MANAGER LISA BLACKMAN REALLY KIND OF LED THIS INITIATIVE FROM OUR OFFICE AND REALLY CAST A PRETTY STRONG VISION AND MAN, THEY DELIVERED ON IT, REAL PROUD OF THAT. WANTED TO HIGHLIGHT THE WORK OF HANNAH ANDERSON AS WELL, AND OUR DMO OFFICE AND THE ENTIRE DMO TEAM PARTICULARLY WANTED TO HIGHLIGHT, I THINK SHELLEY BUTLER'S HERE, I CAN'T SEE IS SHE DOWN ON THE LEFT? WHERE'S SHELLEY FROM? FACILITIES. YOU KNOW I GET HERE. OH MAN. SHELLEY DID SUCH A GOOD JOB.THERE'S PIECES IN THAT SPACE THAT WOULDN'T HAVE BEEN THERE. BUT FOR HER, PARTICULARLY THE CHANDELIERS. YEAH. Y'ALL HEARD THE STORY ON THAT. REAL PROUD OF THE WORK OF SHELLEY, THE IT TEAM COMMS AND MARKETING AS WELL. REST OF THE FACILITY TEAM CVB COMMISSION AND THE COUNCIL ULTIMATELY TO TRUST IN THE VISION AND PUTTING SIGNIFICANT DOLLARS HOTEL OCCUPANCY TAX DOLLARS INTO THAT FACILITY. REAL PROUD OF THE WORK THERE. BRADLEY, LET ME JUST ECHO YOUR SENTIMENTS. IT WAS AN AMAZING EVENT. THE EVENT WAS NICE, BUT WHAT WE WERE ABLE TO DELIVER FOR THE PEOPLE VISITING OUR COMMUNITY, WHETHER IT BE THE FIRST TIME WHERE OUR LOCAL WACOANS EXPERIENCING WACO AS A VISITOR, IT IS JUST A REALLY WELL THOUGHT, THOUGHT OUT FACILITY AND IT IS INCREDIBLY THOUGHTFUL. IT'S IT'S FULL OF HISTORIC STUFF. I MEAN, THERE'S A CHURCH PEW FROM EL SAM'S IN THERE. YOU'VE GOT CHANDELIERS THAT HUNG WERE HIDDEN IN THE ROOSEVELT THERE. I MEAN, SOME SOME DEEP PIECES OF WACO HISTORY AND THINGS THAT TIE IN OUR CULTURE. ORIGINAL PROGRAMS FROM JULES BLEDSOE AND ALL KINDS OF THINGS THAT ARE GERMANE TO NOT ONLY THE PEOPLE, OUR CULTURE, BUT ALSO THE ACTUAL PHYSICAL COMMUNITY. YOU KNOW, THE STORIES OF OF WHAT OUR RIVER LOOKS LIKE AND THE CAT O NINE TAILS AND ALL THOSE THINGS ARE ARE METICULOUSLY THOUGHT OUT IN AN EXPERIENCE THAT IS GENERALLY SOMETHING THAT SOMEBODY COMES IN AND SAYS, OH, WELL, WHERE'S THE MAP TO BLAH, BLAH, BLAH. SO IT'S BUT IT'S NOT THAT. IT'S SO MUCH MORE AND YOU GET THE OPPORTUNITY TO EXPERIENCE WACO JUST VISUALLY AND ESTHETICALLY AS YOU WALK INTO THE FACILITY, THEN YOU CAN GET TO THE GOOD STUFF OF THE WHO'S AND WHAT'S AND WHY'S OF THAT WE OFFER IN THIS COMMUNITY AND, AND THE OPPORTUNITY TO BUY SOME AMAZING SWAG. SO SPECIAL SHOUT OUT TO LISA BLACKMAN WHO KIND OF SPEARHEADED THIS AS A FROM THE MANAGEMENT OFFICE, BUT CERTAINLY TO THE DMO STAFF WHO WORKED THEIR BUTTS OFF TO GET THIS DONE IN TIME, WITH A SMILE ON THEIR FACE AND WELCOMING AND READYING OUR COMMUNITY. SO SHOUT OUT TO Y'ALL. IT WAS. IT'S EXCELLENT. IT'S ALL THAT STUFF THAT MAYOR PRO TEM FAIRFIELD MENTIONED AND IT'S GOT, YOU KNOW, MERCH, COOL WACO MERCH, AND IT'S GOT POTTERY AND A WACO AND POTTERY AND ARTWORK BACK THERE. IT'S JUST IT'S A COOL FRONT DOOR TO TO WACO OR COOL FIRST LOOK AT WACO. REALLY. AND IT'S WEIRD THAT THE PEOPLE WE WERE THERE FOR A COUPLE NIGHTS, THE GRAND OPENING. BUT I'M GETTING EMAILS LIKE EVERY DAY THAT JUST RANDOM SAYING, WELL, THAT'S A PRETTY COOL WELCOME CENTER YOU GOT THERE.
SO IT'S IT HIT THE MARK ON ALL ALL FRONTS. SO CONGRATULATIONS TO EVERYBODY. IT WAS A ASSOCIATED WITH IT. THANK YOU MAYOR AND COUNCIL. YOUR CONSENT AGENDA HAS 29 ITEMS ON IT. I'M GOING TO HIGHLIGHT JUST TWO REAL QUICK. FIRST ONE IS RESOLUTION 921. EVERY ONCE IN A WHILE, MY FRIENDS OVER AT THE POLICE DEPARTMENT WILL REMIND ME HOW MANY FACILITIES WE BUILT FOR THEIR FOR THEIR FRIENDS OVER AT THE FIRE DEPARTMENT. AND WE HAVEN'T BUILT A LOT OF POLICE THINGS. AND SO DEFINITELY FOR FOR CHIEF VICTORIAN AND THE TEAM OUT IN THE CROWD, WE ARE WE'VE GOT A RESOLUTION IN FRONT OF YOU FOR $994,000, FOR ARCHITECTURAL DESIGN SERVICES, FOR A NEW CRIME LAB AND PROPERTY ROOM. THAT CONTRACT WOULD JUST MERELY BE THE DESIGN SERVICES. AND SO WE WOULD HAVE TO COME BACK IN NEXT YEAR'S CAPITAL IMPROVEMENT BUDGET TO ADD MONEY FOR CONSTRUCTION. BUT OBVIOUSLY WE'RE HOPING TO BE ABLE TO DO THAT. AND THE CRIME LAB AND PROPERTY ROOM ARE VERY DATED FACILITIES AND LOOKING FORWARD TO SEEING THAT CHANGE OVER TIME. OTHER RESOLUTION I'VE GOT FOR YOU HIGHLIGHTED IS 928. THIS IS BASICALLY A CHRISTMAS PRESENT TO THE MAYOR. IT AWARDS A $1.59 MILLION CONTRACT FOR THE I-35 BRIDGE LIGHTING PROJECT, AND AMENDS OUR OPERATING BUDGET FOR FISCAL YEAR 2526 TO ALLOW FOR IT TO HAPPEN. CERTAINLY WANT TO THANK CHARLES LEAST AND THE TEAM FOR GETTING US TO THIS POINT AND REALLY WORKING HARD TO FIND A VENDOR THAT COULD CREATE A MUCH MORE DURABLE
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LIGHTING SYSTEM, MUCH MORE AVAILABLE LIGHTING SYSTEM, SO THAT WE CAN RECREATE THOSE DRAMATIC IMAGES ALONG THE RIVER AND REALLY CREATE A POSTCARD MOMENT FOR WACO. WE HAVE FOUR ORDINANCES ON YOUR AGENDA TODAY, AND ALL OF THEM ARE ON SECOND READING. SO MAYOR AND COUNCIL, THAT CONCLUDES MY REPORT, AND I'LL PAUSE FOR ANY QUESTIONS THAT YOU MIGHT HAVE. ANYBODY HAVE ANY COMMENTS ON ANY OF THE RESOLUTIONS OR ORDINANCES? I'LL JUST QUICKLY ADD FOR JUST 10S EACH HERE. BUT THE ON 2025 908I MEAN, I JUST LIKE THESE ARE LITTLE THINGS, BUT WE ARE WORKING TO CLARIFY OUR WATER RIGHTS IN CERTAIN SMALL WAYS, AND I LIKE THE STAFF'S EFFORTS IN MAKING SURE THAT THAT WATER IS SO IMPORTANT TO THE CITY. AND YOU'RE HEARING A LOT MORE ABOUT IT WITH WITH THE NEWS HERE LATELY ON A COUPLE OF FRONTS. BUT I APPRECIATE STAFF'S EFFORTS THERE AND GETTING THAT CLARITY. THE 910 RESOLUTION 910, THE RICK AND LISA SHELDON'S DONATION TO THE CITY OF THE HAD ALREADY DONE. THE COTTON BELT BRIDGE, I THINK, IS WHAT IS CALLED THE MARY STREET BRIDGE. MAYBE SOME PEOPLE KNOW IT AS. AND THEY'RE NOW DONATING THE ENDS TO THE BRIDGE WHERE THERE WAS OBVIOUSLY THE NORTH SIDE OVER THE NORTHEAST SIDE. THEY HAD SOME LAND DOWN THERE. THEY'RE ALSO DONATING. SO AS WE PLAN OUR OUR PARK SYSTEM AND OUR TRAILS, I THINK IT'S GOING TO BE AN INTEGRAL PART OF THAT. SO I WANT TO THANK THE SHELDON FAMILY. I HAD THE WE TALK A LOT. THIS IS 917 RESOLUTION 917. WE TALK A LOT ABOUT THE BIG HOUSING PROJECTS, RIVERWAY AND WESTLAKE AND ALL THESE GIANT PROJECTS GOING ON. THIS ONE I REALLY LIKE. I'VE BEEN OVER THERE A COUPLE OF TIMES.CYPRESS VILLAGE OVER THERE ON GURLEY LANE, AND THESE FOLKS ARE BUILDING WE GRANTED THEM AN EXTENSION HERE, 21 HOMES. THE PRICE POINTS ARE WHERE I DON'T KNOW WHAT AFFORDABLE IS ANYMORE, BUT THAT THAT WILL BE, I THINK SOME AFFORDABLE AND JUST NEW HOMES IN A NICE NEIGHBORHOOD THERE TOO THAT I LIKE THE EFFORTS THERE. THE LAST ONE, IS THAT ALL? OH YEAH. YOU ALREADY MENTIONED THE BRIDGE LIGHTING. I'M NOT GOING TO SAY IT AGAIN. YEAH, THIS IS GREAT. I'M EXCITED ABOUT GETTING THAT. AND IT STARTS ON IN JANUARY AND WE'LL BE COMPLETED BY MAYBE APRIL. IS THAT RIGHT CHARLES? MARCH. RIGHT. WE'RE GOING TO HAVE IT. IT'LL IT'S THE LIGHTS ON THE BRIDGE THAT EVERYBODY'S SEEN. THEY'VE BEEN OFF FOR. YOU DIDN'T KNOW IT BUT THEY'VE BEEN OFF FOR SIX YEARS. MAYBE WE'RE GOING TO TURN THEM BACK ON. WE HAD THAT DISCO ERA WHEN THEY WERE JUST KIND OF ALL OVER THE PLACE. RANDOM. YOU DIDN'T KNOW WHAT COLOR IT WAS GOING TO BE, BUT IT WOULD JUST COME ON EVERY ONCE IN A WHILE. EXCITED TO SEE HIM BACK. OKAY. ANY OTHER COMMENTS GUYS? MAYOR, JUST A BIG SHOUT OUT TO CITY SECRETARY STAFF FOR SUCH A WONDERFUL PARADE EXPERIENCE AT THE WONDERLAND PARADE. THEY DID IT UP JUST OVER AND ABOVE.
APPRECIATED SEEING DEPUTY CITY ATTORNEY AND OUR CITY ATTORNEY AND THEIR FAMILIES OUT THERE CELEBRATING. THAT WAS A LOT OF FUN TO GET WITH THE HAMILTON CAROMS AND THE THE PRADHANS.
AND I KNOW WE HAD A VIP GUEST AND COUNCIL MEMBER LOZANO'S FATHER JOINING US AS WELL. SO WHILE WE DIDN'T HAVE THE MAN IN THE SASH WITH US, IT WAS IT WAS A WONDERFUL TIME. GOOD TIME TO CELEBRATE. OKAY. IS THAT IT? WE HAVE. THAT WAS IT FOR YOU, BRADLEY. I'M GOING TO MOVE TO THE CONSENT AGENDA. THE CONSENT AGENDA INCLUDES 2020 5-904 AND THEN RESOLUTION 2025, DASH 905, RESOLUTION 2025, DASH 932. ARE THERE ANY ITEMS OF COUNCIL WOULD LIKE TO REMOVE FROM THE CONSENT AGENDA? THERE'S ACTUALLY ONE AFFIDAVIT OF SUBSTANTIAL INTEREST. THAT'S THE THE BAYLOR STUDENTS RIDE FREE ONE. AND I THINK WE HAVE A BAYLOR. I THINK AS LONG AS YOU DON'T RIDE THAT THING JOSH YOU WOULD PROBABLY BE OKAY. BUT YEAH, WE'RE GOING TO WE'RE STILL GOING TO LEAVE YOU OUT. HEY, THE CONSENT AGENDA INCLUDES 20 5-904 AND RESOLUTIONS 20 5-905 THROUGH RESOLUTIONS 2025. DASH 932 EXCEPT FOR RESOLUTION 25 2020 5-9 30. WE'RE. COUNCIL MEMBER BOARD HAS FILED AN AFFIDAVIT OF SUBSTANTIAL INTEREST. SO THE NEXT ITEM ON THE AGENDA IS WORK SESSION ITEMS 2020 5-8.993901 CITY MANAGER FORD MAYOR. WE'RE GOING TO START OFF WITH 8.99. IT'S A DISCUSSION OF WACO FAMILY MEDICINE CENTER. THEIR ACCOMPLISHMENTS AND GOALS FOR THE YEAR. EACH YEAR, WE INVITE DOCTOR JACKSON GRIGGS TO VISIT US AND GIVE AN ANNUAL UPDATE ON HEALTH CARE SERVICES AT WACO FAMILY MEDICINE. AND WE'VE & ALWAYS BEEN A CONSISTENT PARTNER OF DOCTOR GRIGGS, AS WELL AS THE TEAM PRIOR, AND VERY PROUD TO TO HAVE THEM IN OUR COMMUNITY AND LOOK FORWARD TO HEARING THE UPDATE TODAY.
JACKSON. THANK YOU, BRADLEY, AND AND THANK YOU, MAYOR HOLMES. MAYOR PRO TEM FAIRFIELD COUNCIL MEMBERS, I'M ALWAYS SO GRATEFUL FOR THE OPPORTUNITY TO COME VISIT WITH YOU ABOUT PROGRESS AND STRUGGLES, BOTH. YOU KNOW, THIS IS 25, SORRY, 55 YEARS OF OF COLLABORATION AND PUBLIC
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PRIVATE COLLABORATION AND ENSURING THAT THOSE WHO ARE UNINSURED AND UNDERINSURED ARE PROVIDED BASIC FUNDAMENTAL HEALTH CARE AND PRIMARY CARE IN OUR COMMUNITY. SO IT'S GOOD, VITAL WORK. I HOPE TO MAKE A FEW KEY POINTS ABOUT THE CURRENT STATUS AND WHAT'S AT STAKE RIGHT NOW. AND SO I'M EAGER FOR QUESTIONS. I HAVE 20 MINUTES, AND THAT MEANS I'M GOING TO HAVE TO TO GET ALL THE INFORMATION ACROSS TO YOU. I'M GOING TO MOVE PRETTY QUICKLY, BUT WE'LL BE EAGER TO EXTEND THAT 20 MINUTES. IF YOU HAVE QUESTIONS, I'M AT YOUR DISPOSAL.SO WE'LL TALK ABOUT CONTEXT, MISSION AND THE VALUE THAT WE BRING TO THE HEALTH CARE ECOSYSTEM, AN UPDATE ON SERVICES, AND THEN SPEAK SPECIFICALLY TO OUR FINANCIAL CONDITION. SO CONTEXT. SO I'M A LIFELONG TEXAN LOVE TEXAS. WE WE DON'T HAVE A LOT TO BE PROUD OF IN TERMS OF OUR POPULATION HEALTH IN TEXAS TEXAS IS 46TH FOR YOUTH WITH DEPRESSION WHO DID NOT RECEIVE MENTAL HEALTH SERVICES. 46 OUT OF 50 STATES. WE'RE 48TH FOR PEOPLE WITH MEDICAL DEBT IN COLLECTIONS. REMEMBER THAT MEDICAL DEBT IS NOW THE NUMBER ONE CAUSE OF BANKRUPTCY IN THE UNITED STATES, AND WE'RE 48TH FOR PEOPLE WITH MEDICAL DEBT IN COLLECTIONS.
WE'RE 49TH FOR CHILDREN LACKING A MEDICAL HOME, 49TH OUT OF 50 STATES, AND KIDS WHO CAN SAY, THIS IS MY DOCTOR, WE'RE 50TH FOR PRIMARY CARE PHYSICIANS PER 100,000 PEOPLE. SO VERY LOW PRIMARY CARE DENSITY ACROSS THE STATE. WACO IS AN EXCEPTION THERE. BUT BECAUSE OF BECAUSE OF THE TRAINING PROGRAM THAT I'LL GET TO. BUT THE STATE HAS VERY LOW PRIMARY CARE PHYSICIAN DENSITY. WE ARE 50TH FOR MENTAL HEALTH PROVIDERS PER 100,000 PEOPLE. AND AND I THINK MAYBE THE SORT OF THE LINCHPIN OF THE WHOLE TALK, IF THERE'S NOTHING ELSE THAT THE COMMUNITY TAKES HOME OR THAT OR THAT THE AUDIENCE HERE TAKES HOME, IS THAT OF THE 50 STATES, TEXAS RANKS 50TH FOR UNINSURANCE ACCESS AND AFFORDABILITY. WE ARE WORST IN THE COUNTRY ON ACCESS TO HEALTH CARE. THIS IS A SOBERING STATISTIC AND GRAPHIC THAT CAME FROM COMMONWEALTH FUND, WELL RESPECTED NATIONAL HEALTH THINK TANK, LOOKED AT THE 50 STATES AND THIS IS DATA FROM 2023. THIS WAS JUST CAME OUT IN 25 2025 REPORT. BUT IT IT LOOKED AT THE 50 STATES AND THE NUMBER OF ADULTS WHO GO WITHOUT MEDICAL CARE DUE TO COST. SO IT'S JUST TOO EXPENSIVE. I'M JUST NOT GOING TO GO IN TO GET THIS ISSUE ADDRESSED. OBVIOUSLY, THAT LEADS TO REAL RAMIFICATIONS IN AN INDIVIDUAL'S LIFE SPAN AND THEIR INDIVIDUAL HEALTH AND AND HEALTH CARE COSTS, ECONOMIC PERFORMANCE, ETCETERA. AND HERE YOU SEE TEXAS AT THE VERY, VERY END OF THE 50 STATES IN TERMS OF ADULTS GOING WITHOUT MEDICAL CARE DUE TO COST. WE ARE DEAD. LAST, 18.4% OF ADULTS LAST YEAR WENT WITHOUT MEDICAL CARE DUE TO COST, AND WE ARE 3% HIGHER THAN THE NEXT WORST, WHICH IS GEORGIA. YOU ALSO SEE YOU DON'T SEE ANY SPREAD IN TERMS OF IMPROVEMENT. 2013 IS WHEN THE AFFORDABLE CARE ACT WENT INTO PLACE. 2023 YOU SEE NEGLIGIBLE IMPACT. AND OF THE AFFORDABLE CARE ACT, BECAUSE TEXAS OPTED OUT OF A LOT OF THE BENEFITS OF THE AFFORDABLE CARE ACT. AND AND THAT HAS LED TO, AT LEAST IN PART, WHY THERE HASN'T BEEN ANY IMPROVEMENT SINCE 2013 AND THE PERCENTAGE OF ADULTS GOING WITHOUT MEDICAL CARE DUE TO COST. THE SAME GROUP, THE COMMONWEALTH FUND, LOOKED AT MYRIAD OF DATA AND AND RANKED THROUGH. THEY DO THIS EVERY COUPLE OF YEARS, RANKED THE 50 STATES IN TERMS OF COMPOSITE HEALTH SYSTEM PERFORMANCE. KEY FEATURES THAT THEY WAIT HIGHLY IN THAT RANKING IS ACCESS TO CARE, CARE QUALITY, EFFICIENT USE OF SERVICES AND OUTCOMES.
YOU SEE, TEXAS RANKS 50TH OUT OF 50 STATES PLUS DC, THE ONLY STATE WHO'S PERFORMING WORSE THAN TEXAS AND THEIR COMPOSITE HEALTH SYSTEM PERFORMANCES IS MISSISSIPPI. SO THAT'S THE CONTEXT IN WHICH WE ARE WORKING. THE STATE LEVEL CONTEXT IN WHICH WE ARE WE'RE DOING THIS WORK. WACO FAMILY MEDICINE'S MISSION IS TO IMPROVE THE HEALTH AND WELLNESS OF THE UNDERSERVED RESIDENTS OF THE HEART OF TEXAS BY PROVIDING TWO THINGS BY PROVIDING EFFECTIVE ACCESS TO HIGH QUALITY, COMPREHENSIVE PRIMARY CARE, AND SECOND, AN EXEMPLARY TRAINING
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ENVIRONMENT FOR TOMORROW'S FAMILY PHYSICIANS AND OTHER HEALTH CARE PROFESSIONALS. I'M GOING TO REALLY FOCUS ON THIS HIGH QUALITY, COMPREHENSIVE PRIMARY CARE, BUT WE'LL DISCUSS BRIEFLY OUR TRAINING PROGRAM AS WELL. SO WHAT IS IT? WHAT IS HIGH QUALITY PRIMARY CARE? SO THE NATIONAL ACADEMIES OF SCIENCES, ENGINEERING AND MEDICINE, THE THE ORGANIZATION PARA GOVERNMENTAL ORGANIZATION WITH PROBABLY THE HIGHEST ESTEEM IN IN MEDICINE CREATED THIS DEFINITION OF HIGH QUALITY PRIMARY CARE, THE PROVISION OF WHOLE PERSON INTEGRATED, ACCESSIBLE AND EQUITABLE HEALTH CARE BY INTERPROFESSIONAL TEAMS WHO ARE ACCOUNTABLE FOR ADDRESSING THE MAJORITY OF AN INDIVIDUAL'S HEALTH AND WELLNESS NEEDS ACROSS SETTINGS AND THROUGH SUSTAINED RELATIONSHIPS WITH PATIENTS, FAMILIES, AND COMMUNITIES. SO WHOLE PERSON CARE, CONTINUITY, AND RELATIONSHIP FOCUSED. WHAT THAT LOOKS LIKE IN IN EVERYDAY LIFE IS PREVENTION AND EARLY TREATMENT OF ACUTE AND CHRONIC DISEASES. EFFECTIVE MANAGEMENT OF ESTABLISHED CHRONIC CONDITIONS, PERSON CENTERED MATERNAL AND CHILD HEALTH CARE, MANAGEMENT OF MENTAL HEALTH AND SUBSTANCE USE DISORDERS. EMERGENCY PREPAREDNESS AND RESPONSE ADDRESSING SOCIAL DETERMINANTS OF HEALTH OR NON-MEDICAL DRIVERS OF HEALTH, AND THAT COLLECTIVELY YIELDS HEALTHIER, LONGER LIVES. THESE AREN'T CLAIMS. THERE'S EVIDENCE THAT YEAR AFTER YEAR POINTS TO THESE OUTCOMES HEALTHIER, LONGER LIVES, INCREASED WORKFORCE PRODUCTIVITY AND ECONOMIC STRENGTH, REDUCED HEALTH CARE COSTS, AND HIGHER SYSTEM VALUE. SO THIS SAME BODY THAT I DESCRIBED, NATIONAL ACADEMIES OF SCIENCES, ENGINEERING, MEDICINE 2021, THEY SAID PRIMARY CARE. AFTER LOOKING AT ALL THE LITERATURE AND HEALTH ECONOMICS AROUND PRIMARY CARE, MADE THIS POINT. PRIMARY CARE IS THE ONLY HEALTH CARE COMPONENT WHERE AN INCREASED SUPPLY. IF YOU ADD MORE PRIMARY CARE IN A COMMUNITY, YOU SEE BETTER POPULATION HEALTH AND MORE EQUITABLE OUTCOMES. SO FEWER DISPARITIES BETWEEN SUBPOPULATIONS, ADDING MORE PRIMARY CARE MEANS EVERYBODY DOES BETTER, AND THE GAPS BETWEEN GROUPS CLOSE. THIS GROUP ARGUED THAT FOR THIS REASON, PRIMARY CARE IS A COMMON GOOD, MAKING THE STRENGTH AND QUALITY OF THE COUNTRY'S PRIMARY CARE SERVICES A PUBLIC CONCERN. I BELIEVE THAT'S WHY WACO HAS CONSISTENTLY INVESTED IN HIGH QUALITY PRIMARY CARE, PARTICULARLY FOR THOSE WHO WOULDN'T HAVE ANY OTHER WAY TO TO ACCESS PRIMARY CARE EXCEPT THROUGH WACO FAMILY MEDICINE.IT IS A PUBLIC CONCERN. WE SAW JUST SHY OF 75,000 UNIQUE INDIVIDUALS LAST YEAR, 53,000 OF THAT 75,000 WERE IN MCLENNAN COUNTY. SO THAT'S 71%. 14% IN HILL COUNTY, 5% IN BELL COUNTY.
THE ACTUAL VISIT COUNTS, THOSE WERE INDIVIDUALS THAT I WERE JUST SHARING. BUT THIS IS VISIT COUNTS IN MCLENNAN COUNTY ALONE. SO THIS ISN'T THOSE IN HILL COUNTY AND BELL COUNTY, BUT IN MCLENNAN COUNTY FOR MEDICAL CARE. WE SAW JUST SHY OF 119,000 VISITS, OR WE CONDUCTED ALMOST 119,000 VISITS FOR MENTAL HEALTH CARE, 90,771 MENTAL HEALTH CARE VISITS, PRENATAL AND POSTPARTUM CARE, A LITTLE OVER 15,000 AND DENTAL CARE 17,500. SO I WOULD EXPECT THE NEXT QUESTION TO BE, OKAY, THAT'S MCLENNAN COUNTY. WHAT ABOUT WACO? SO WACO IS 79% OF THOSE THAT WE CARED FOR IN MCLENNAN COUNTY, A LITTLE OVER HALF, ABOUT 55% OF OF ALL OF THOSE WHO WE SAW LAST YEAR ARE IN WACO CITY LIMITS, 21% OF THOSE IN MCLENNAN COUNTY ARE OUTSIDE OF WACO CITY LIMITS. THESE ARE SELF-REPORTED INDIVIDUALS WHO ARE PATIENTS WHO GIVE US THEIR ADDRESS. SO WHAT'S THE COST OF THE UNINSURED CARE JUST PURELY TO WACOANS NOT LOOKING AT THE WHOLE SYSTEM, JUST LOOKING AT THOSE WHO RESIDE IN WACO, THE COST AND AND WE HAVE A FEDERAL COST REPORT THAT GOES THROUGH VETTING AT HHS, THROUGH CMS, AS WELL AS THROUGH THE STATE. SO OUR COST ACCOUNTING HAS TO BE JUST REALLY HIGH QUALITY AND JUST RIGHT. SO THIS IS BASED ON ON NUMBERS FROM THAT REPORT, THE THE 12 MONTH COST OF UNINSURED CARE TO WACOANS IS A LITTLE OVER 10 MILLION, 10 MILLION, 270,000 A YEAR. AND AND OUR 55 YEAR RELATIONSHIP, WACO USED TO HAVE ITS OWN STAFF WHO PROVIDED CARE TO AT THE
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TIME THE TERM WAS INDIGENT CARE. AND THEN WHEN WE BECAME AN ENTITY IN 1970, WE TOOK OVER THAT CARE WITH GENEROUS SUPPORT FROM THE CITY. THAT THAT SUPPORT HAS GROWN OVER TIME.CURRENTLY, THE CITY OFFSETS THE COST OF UNINSURED CARE IN WACO AT 1.25 MILLION, SO ABOUT 12% OF THE OVERALL COST OF OF CARE FOR THOSE WHO ARE UNINSURED. WACO COMES FROM AN ANNUAL CITY CONTRIBUTION SELF-PAY. SO PATIENTS DO PAY. WE HAVE A SLIDING FEE SCALE, A NOMINAL FEE FOR THOSE WHO FALL BELOW FEDERAL POVERTY LEVEL, AND THAT'S WAIVED WHEN INDIVIDUALS DON'T HAVE A PENNY IN THEIR POCKET. AND THERE'S MEDICAL NEED. WE SEE THOSE FOLKS BETWEEN 100 AND 200% OF FEDERAL POVERTY. THERE'S A SLIDING FEE SCALE, SO THERE IS A PATIENT CONTRIBUTION TO THEIR CARE. AND THAT'S ABOUT 10%, JUST OVER $1 MILLION. AND THEN THROUGH OTHER SOURCES, ABOUT $8 MILLION OR 78% FOR THE UNINSURED CARE IN WACO, TEXAS. I WANT TO INTERRUPT YOU. THIS IS THE ONE THAT I DIDN'T. IS THIS SO? THIS IS EVERYTHING THAT COMES THROUGH WACO FAMILY MEDICINE. IT'S 10 MILLION. YES. SO NOT NOT EVERYTHING. YEAH. THIS IS JUST THOSE INDIVIDUALS WHO COME WITHOUT INSURANCE, OKAY, TO SEE US. SO THIS IS PURELY THOSE WHO ARE UNINSURED. THE, THE SO THIS INCLUDES THE SELF-PAY IS ALL THE CASH INFLOWS AMONG THAT POPULATION. THOSE ARE THE INDIVIDUALS THAT DON'T HAVE INSURANCE AND THEY PAY OUT-OF-POCKET. AND THEN THE THE CITY OF WACO IS, IS IS WHAT IS INCLUDED IN THE CITY BUDGET.
OKAY. THANKS. JACKSON. I'M SORRY. GOING BACK, WHAT CAN YOU PROVIDE A FEW EXAMPLES OF WHAT OTHER SOURCES GO INTO THAT? 78% IF IF YOU'LL ALLOW ME, COUNCILMEMBER CHASE, I'LL SHOW THAT TO YOU JUST JUST A LITTLE BIT IF I CAN, IF I CAN GET THERE, BECAUSE I MIGHT MISS IT IF I DON'T HAVE THE SLIDE IN FRONT OF ME. SO WHAT DO YOU GET FOR YOUR DOLLAR? YOU KNOW, WHAT'S THE ROI? I THINK THAT WOULD BE A REASONABLE QUESTION. THE, THE, THE LITERATURE HAS BEEN UNEQUIVOCAL AND PRODUCED IN MULTIPLE SETTINGS ACROSS NOW MULTIPLE GENERATIONS THAT THAT PRIMARY CARE WITHIN A POPULATION, IT YIELDS COST SAVINGS WHEN OPTIMIZED AT $1 SPENT IN PRIMARY CARE, SAVES $13 DOWNSTREAM IN OTHER HEALTH CARE COSTS. AGAIN, I HOPE THIS IN YOUR HEAD IS TIED TO THE COMMENT WHERE WE STARTED ABOUT ABOUT BANKRUPTCY AND AND HOW CHALLENGING IT IS IN TEXAS FOR INDIVIDUALS. SO THE FACT THAT WE'RE SAVING THE DOLLARS THROUGH INVESTMENT IN PRIMARY CARE BECOMES CRITICAL, NOT JUST AT A POPULATION LEVEL, BUT TO INDIVIDUALS AND FAMILIES. SO LOWER HEALTH CARE SPENDING AND BETTER HEALTH OUTCOMES, INCLUDING MORTALITY. SO PREMATURE MORTALITY AND LONGEVITY AT A POPULATION LEVEL, LONGER LIVES. I'VE INCLUDED SOME CITATIONS. CAN PROVIDE THOSE IN IN FULL CONTENT IF INTERESTED. IF YOU'RE AVOIDABLE HOSPITAL ADMISSIONS IMPROVED OUTCOMES FOR DEPRESSION, MORE PREVENTION AND EARLIER DETECTION OF SERIOUS DISEASE, AND FEWER DISPARITIES IN ACCESS, BIRTH OUTCOMES AND CHRONIC DISEASE OUTCOMES AMONG SUBPOPULATIONS. THIS IS JUST REPRESENTATIVE THE. THE LIST IS HUNDREDS OF CITATIONS LONG. IF IF I WERE TO SHARE WITH YOU THE WHOLE LIST OF OF BENEFITS TO PRIMARY CARE, I WANT TO TALK A LITTLE BIT ABOUT INNOVATIONS AND INSTITUTE. I'M GOING TO PICK UP THE PACE HERE A LITTLE BIT AND JUST TIME I WANT TO JUST TO SHARE WITH YOU A REPRESENTATION OF THE QUALITY WORK THAT WE'RE DOING. AND WHEN I SAY QUALITY WORK, WHAT I MEAN IS THE QUALITY ANALYSIS. WE'RE CONSTANTLY LOOKING AT OUTCOMES AND AND DEFINING GOALS AND TRYING TO IMPROVE CARE. SO HIV SCREENING THE THE BENCHMARKS HERE HAPPEN TO BE HEALTH RESOURCES AND SERVICES ADMINISTRATION, AN ADMINISTRATION OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, GOALS FOR COMMUNITY HEALTH CENTERS. SO WE'RE OUR HIV SCREENING IS ABOVE GOAL. OUR BLOOD PRESSURE CONTROL CONTROL. WE ARE ALMOST AT GOAL IN TERMS OF OUR PERCENTAGE OF POPULATION WHO MEETS OUR BLOOD PRESSURE GOALS. COLON CANCER SCREENING. THERE STILL IS A SUBSTANTIAL GAP THERE. WE HAVE WE HAVE IMPROVED. WE'VE CLOSED THE GAP. BUT WE'RE STILL, YOU KNOW, A GOOD BIT FROM WHERE WE WANT TO BE. WE WANT TO EXCEED THAT GAP. AND IN TERMS OF COLON CANCER SCREENING, IT'S THE NUMBER ONE CAUSE OF PREVENTABLE CANCER DEATH. AND SCREENING IS KEY IN COLON CANCER PREVENTION AND THEN DIABETIC CONTROL. THIS IS A RECIPROCAL CHART. ACTUALLY LOWER IS BETTER. THIS IS A MEASURE OF CONTROL. SO YOU WANT THAT LOWER. AND WE'RE AND WE ARE AT 28% WHICH IS WHICH IS BETTER THAN GOAL. AN ARRAY OF SERVICES FOR NON-MEDICAL DRIVERS OF HEALTH WITH REALLY
[00:30:03]
KEY PARTNERSHIPS WITH COMMUNITY BASED ORGANIZATIONS, UNIVERSITY, ETC. OUR WELLNESS CENTER. IF YOU HAVEN'T TAKEN A TOUR AND SEEN IT, WE'D LOVE TO SHOW YOU YOUR TEACHING KITCHEN COLLABORATION WITH URBAN MEDICAL LEGAL PARTNERSHIP WITH KEN MCKEEVER AND THE GREAT CREW AT GREATER LEGAL SERVICES. FOOD PRESCRIPTION AND COLLABORATION WITH SHEPHERD'S HEART, CAR SEAT PASSENGER SAFETY WITH AGRILIFE HEALTH. AGING, EDUCATION WITH BETTER AT LAST JOB READINESS CLASSES AND FINANCIAL LITERACY TRAINING WITH HEART OF TEXAS GOODWILL. AGAIN A REPRESENTATIVE LIST, NOT COMPREHENSIVE. AND THEN WE'RE EARLY IN IMPLEMENTATION.IMPLEMENTATION. WE'RE IN THE LAUNCH PHASE FOR OUR SCHOOL BASED BEHAVIORAL HEALTH CARE.
THIS IS A AN AREA OF PEDIATRIC ADOLESCENT AND YOUNG ADULT. MENTAL HEALTH IS IN CRISIS ACROSS THE COUNTRY. AND THIS IS A LOCAL RESPONSE TO THAT NEED AS IT REPRESENTS ITSELF IN OUR COMMUNITY. WE ARE JUST GETTING STARTED. WE THINK THAT THERE'S A GREAT DEAL OF POTENTIAL FOR GROWTH IN THIS SPACE, AND THIS IS DERIVED FROM THE COLLABORATIVE WORK OF BEHAVIORAL LEADERSHIP TEAM. BEHAVIORAL LEADERSHIP TEAM HAS BEEN MEETING A LOT OF YEARS TO TRY TO IDENTIFY WHAT ARE THE KEY ISSUES IN BEHAVIORAL HEALTH AND HOW DO WE REMEDY THEM. THIS IS ONE OF THE SOLUTIONS THAT CAME FROM FROM THAT GROUP. WE'RE JUST BEGINNING TO WORK ON A PILOT PROJECT WITH COMMUNITY HEALTH WORKERS FOR PREGNANT WOMEN AND CHILDREN. WE THINK THERE'S A LOT OF POTENTIAL THERE. AND AND WE'RE IN THE FEASIBILITY STAGE AND JUST ABOUT TO TRANSITION INTO AN IMPLEMENTATION PHASE FOR CARE MANAGEMENT, FOR EXITING INMATES.
THIS IS ALSO DERIVED FROM BEHAVIORAL HEALTH LEADERSHIP TEAMS. SO THOSE INMATES WHO HAVE BEHAVIORAL HEALTH NEEDS, BRIDGING THEM TO CARE AND PRIMARY CARE AND ENSURING THAT THEY GET THEIR MEDICATIONS SO WE CAN DECREASE RECIDIVISM. WE HAVE 36 RESIDENTS. THESE ARE THE BEST OF THE BEST ACROSS THE COUNTRY WHO ARE INTERESTED IN PRIMARY CARE. THEY COME FROM ALL OVER, TEND TO BE THE TOP PERFORMERS IN THEIR MEDICAL SCHOOL CLASSES WHO ARE INTERESTED IN PRIMARY CARE. I THINK HALF OF OUR INCOMING CLASS LAST YEAR WAS AOA, ALPHA OMEGA ALPHA MEDICAL SOCIETY, HONOR SOCIETY, AND VERY PRESTIGIOUS. SO WE'RE GETTING EXCELLENT DOCTORS, TRAINING THEM AGGRESSIVELY FOR THREE YEARS. AND THEN MANY OF THEM STAY AND WORK IN OUR COMMUNITY, WHICH IS WHY PRIMARY CARE IN WACO, MCLENNAN COUNTY IS SO STRONG, BECAUSE WE'VE BEEN DOING THIS NOW FOR 55 YEARS, AND OUR BECAUSE WE WERE ONE OF THE VERY FIRST FAMILY MEDICINE TRAINING PROGRAMS IN THE COUNTRY. WE CONTINUE TO HAVE ONE OF THE TOP 2% PROGRAMS OF THE 750 OR SO PROGRAMS IN THE COUNTRY. WE CONSISTENTLY HAVE ONE OF THE MOST PRESTIGIOUS TRAINING PROGRAMS IN FAMILY MEDICINE. DOCTOR GRIGGS, JUST A JUST A QUESTION ABOUT YOUR FIELD OF EXPERTISE. OUR FAMILY MEDICINE AND PRIMARY CARE TERMS THAT ARE GENERALLY SYNONYMOUS WITH EACH OTHER. GREAT QUESTION, COUNCIL MEMBER. THANK YOU FOR ASKING THAT. SO FOR CLARITY, FAMILY MEDICINE, INTERNAL MEDICINE, PEDIATRICS, OBSTETRICS AND GYNECOLOGY THESE ARE DIFFERENT SPECIALTIES AMONG THE AMERICAN BOARD OF SPECIALTIES. SO THESE ARE ALL THEY ALL HAVE THEIR OWN RESIDENCY TRAINING PROGRAMS. THEY'RE ALL THEY'RE ALL DIFFERENT BOARD EXAMS. AND AND SO THINK OF THESE AS DIFFERENT MEDICAL SPECIALTIES. INTERNAL MEDICINE HISTORICALLY PROVIDED A GREAT DEAL OF PRIMARY CARE.
AND I'LL DEFINE OR AT LEAST GO IN A LITTLE MORE DETAIL IN PRIMARY CARE MOMENTARILY. BUT INTERNAL MEDICINE HAS INCREASINGLY BECOME A SUBSPECIALTY FIELD. SO NOW DOCTORS TRAIN IN INTERNAL MEDICINE FOR THREE YEARS. THEY TAKE THEIR BOARDS, THEY'RE AN INTERNIST. AND THEN MORE FREQUENTLY NOW THEY SPECIALIZE. SO THEY BECOME A CARDIOLOGIST OR A NEPHROLOGIST OR A PULMONOLOGIST, CRITICAL CARE DOCTOR. AND THAT'S THROUGH A FELLOWSHIP AND AN ADDITIONAL SET OF BOARDS. SO THE NUMBER OF GENERAL INTERNISTS WHO PRACTICE PRIMARY CARE HAS DIMINISHED. AND FAMILY MEDICINE IS NOW GRADUATING. MORE DOCTORS FROM FAMILY MEDICINE TRAINING PROGRAMS WHO ARE PROVIDING PRIMARY CARE. SO PRIMARY CARE, YOU KNOW, I DEFINED IT EARLIER. BUT THINK ABOUT IT AS THAT, THAT COLLECTION OF SPECIALTIES THAT CAN ADDRESS THE MAJORITY OF A PERSON'S HEALTH NEEDS OVER THEIR LIFESPAN, WHILE FAMILY MEDICINE, WE DESCRIBE FAMILY MEDICINE AS AS WOMB TO TOMB CARE, YOU KNOW, FROM PRECONCEPTION ALL THE WAY THROUGH DEATH AND DYING, WITH AN EMPHASIS ON INTERDISCIPLINARY LEARNING. SO THERE IS A FAMILY DOCS ARE ARE PARTICULARLY INTERESTED IN HOW AN INDIVIDUAL EXPERIENCES HEALTH AND ILLNESS, THE PSYCHOLOGICAL FACTORS THAT IMPACT THEIR HEALTH, THE WAY CHRONIC CONDITIONS IMPACT THEIR LIFE AND VALUES, ETC. BUT BUT
[00:35:01]
GROUNDED IN BIOMEDICAL EVIDENCE, WHICH IS KEY FOR FOR ANY SPECIALTY. THANK YOU. WE REALLY PROUD. IN FACT, WE HAVE REALLY BECOME, IN ADDITION TO OUR RESIDENCY PROGRAM FOR ITS TRAINING. ALSO SOME OF THE SCHOLARSHIP THAT'S COME OUT OF THE RESIDENCY PROGRAM AND THE MODEL OF PRIMARY CARE BEHAVIORAL HEALTH HAS BECOME A SORT OF WE HAVE A NATIONAL REPUTATION. AND HAVE WE JUST HAD OUR FIRST ANNUAL BEHAVIORAL HEALTH UPDATE LAST YEAR. WE'RE WE'RE EXCITED ABOUT OUR SECOND, BRINGING IN SOME OF THE THE THE WORLD'S TOP SCHOLARS IN, IN MENTAL HEALTH TO TO WACO TO SPEAK TO DOCTORS AND NURSE PRACTITIONERS AND PAS AND LPCS.AND SO IT'S KIND OF A SHINING AREA WHERE WE WHERE WE STAND OUT. I'M GOING TO TRANSITION NOW TO, TO FINANCIAL CONDITION. SO I WANT TO GIVE YOU A SNAPSHOT OF HOW YOU HOW WE FUND AN FQHC IN TEXAS, CLINICAL REVENUE IS JUST OVER HALF OF THE DOLLARS THAT COME IN.
PHARMACY IS A LITTLE OVER A THIRD. GRANTS AND OTHER SUPPORT, ABOUT 12% EXPENSES. ALMOST HALF IS IS PERSONNEL. FOR OBVIOUS REASONS, THE COST OF GOODS SOLD IN THE PHARMACY IS 19%. YOU CAN JUST LOOK AT THE TWO GREEN ASPECTS OF THAT PIE THERE, THOSE OF THE REVENUE EXPENSE.
AND YOU SEE THAT WE MAKE A SIZABLE MARGIN ON THE PHARMACY. WE HAVE A FEDERAL DESIGNATION IN OUR PHARMACY THAT THAT THAT CREATES THAT MARGIN AS BUT FEDERAL REQUIREMENTS THAT WE USE THAT MARGIN TO CARE FOR THOSE WHO ARE UNINSURED OR UNDERINSURED. SO THE PHARMACY REALLY IS KEY TO OUR FINANCIAL FORMULA. AND, DOCTOR GRIGGS, WHAT'S THE MAGNITUDE OF THE PIE? IS IT 10 MILLION 1215 WHAT IS THE. SO TOTAL PIE IS 96 MILLION. GOT IT. IN TERMS OF PUBLIC FUNDING THIS IS THE BREAKDOWN. SO OF THAT 6% GRANTS AND 6% OTHER SUPPORT, THERE'S ABOUT 10% OF THAT 12% IS IN PUBLIC FUNDING. SO FEDERAL FUNDING IS 54%. OF THAT 9.4 MILLION STATE IS 25%, COUNTY EIGHT AND CITY 13% OF THAT. SO A TOTAL OF THAT ENTIRE PIE, THERE IS 9.4 MILLION IN PUBLIC FUNDING. WE HAVE A VERY, VERY LARGE UNINSURED POPULATION, WHICH IS NO SURPRISE GIVEN TEXAS SITUATION. MEDICAID 31%. MEDICAID IS. WHILE SOMETIMES YOU'LL HEAR FOLKS IN THE COMMUNITY SAY, WELL, THERE AREN'T ENOUGH DOCTORS THAT TAKE MEDICAID, THAT MAY BE TRUE IN OTHER ENVIRONMENTS WHERE THERE'S NOT AN FQHC. FEDERALLY QUALIFIED HEALTH CENTERS ARE REALLY, REALLY INTERESTED IN CARING FOR MEDICAID BECAUSE WE RECEIVE ENHANCED REIMBURSEMENT, COST BASED REIMBURSEMENT FOR MEDICAID. SO IT BECOMES A KEY PART OF THE FINANCING FORMULA. SO PHARMACY, MEDICAID, AND THEN MEDICARE AND COMMERCIAL INSURANCE COLLECTIVELY IS ABOUT A THIRD OF OF THE CARE THAT WE PROVIDE, TWO THIRDS OF THOSE WHO WALK THROUGH OUR DOOR FALL BELOW FEDERAL POVERTY. AND THAT'S 15,000 FOR AN INDIVIDUAL, 30,000 FOR A FAMILY OF FOUR. AND THAT, YOU KNOW, IS DEFINED BY THE FEDERAL GOVERNMENT. OF COURSE, YOU KNOW, THOSE WHO CAN'T PROVIDE FOR THEIR BASIC NEEDS. THAT'S TWO THIRDS OF THOSE WHO WE SEE, ONLY 9% ARE ARE OVER TWICE. SO THAT'S 60,000 FOR A FAMILY OF FOUR AND ABOVE. FOR AN ARRAY OF REASONS. WE OUR MEDICAID IS A LITTLE LOWER THAN THE TEXAS AVERAGE OF 36%. THE PAYER MIX IN TEXAS IS ABOUT 36% AT FQHCS. THAT'S THE AVERAGE, AND WE'RE AT 31%. US AVERAGE IS 50%. AGAIN, THAT'S BECAUSE WE'RE MEDICAID NONEXPANSION STATE. SO WE HAVE AND AND THE STATE THAT HAS THE MOST RIGOROUS MEDICAID CRITERIA OF THE 50 STATES. SO, 2425 INFLATION AND MEDICAL COSTS AND LABOR COSTS, DISCRIMINATORY, DISCRIMINATORY PAYMENTS BY SORT OF A MIDDLEMAN THAT THAT WEDGED ITS WAY INTO THE 340 PROGRAM OVER YEARS. AND IT'S A FOR PROFIT ENTITY. IT'S A IT'S A A REAL STRUGGLE. THE PBMS OR PHARMACY BENEFIT MANAGERS, A LOT OF STATES HAVE POLICY THAT PROTECTS THE SAFETY NETS FROM PBMS. OUR STATE DOESN'T. AND IT DIDN'T PASS IN THE 89TH LEGISLATURE, DESPITE OUR ATTEMPTS TO TO GET SOME PROTECTIONS FROM PBMS AND THEN THE MEDICAID DISENROLLMENT OR UNWINDING IS THE NICER TERM FOR
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IT. WE CALL IT THE DISENROLLMENT, THOUGH, BECAUSE PRE PUBLIC HEALTH EMERGENCY, 39% OF OUR POPULATION, I'M SORRY, 39% OF OUR VISITS WERE MEDICAID DURING THE PANDEMIC.IT WENT UP TO 42%. BUT WHEN THE STATE UNWOUND THE RULES THAT OCCURRED DURING THE PUBLIC HEALTH EMERGENCY, THEY WERE VERY, VERY AGGRESSIVE, THE MOST AGGRESSIVE OF THE 50 STATES IN ENROLLING INDIVIDUALS. AND WE DROPPED DOWN TO 33.5%. I MENTIONED BEFORE THAT IT'S A KEY PART OF OUR OF OUR THREE LEGGED STOOL, ECONOMIC STOOL. AND IT AND IT WAS, YOU KNOW, IT WAS REALLY DEVASTATING TO US. AND THAT'S REALLY WHAT THE LED TO MUCH OF THE CHALLENGES THAT THAT ULTIMATELY ENDED IN A REDUCTION IN FORCE AND CLINIC CONSOLIDATIONS, 12% ROLL REDUCTION AT WACO FAMILY MEDICINE LAST YEAR, 30% WERE ELIMINATED THROUGH ATTRITION.
FROM JANUARY TO MARCH, 52% OF ADDITIONAL POSITIONS WERE ELIMINATED IN A REDUCTION IN FORCE. WE CLOSED BELLS HILL MYERS CENTER MCC CLINIC. WE HAD TEMPORARILY CLOSED AUSTIN AVENUE, BUT WE CLOSED IT DEFINITIVELY. AND I WANT TO DRAW YOUR ATTENTION TO THIS AND MAKE THIS POINT THAT THAT GIVEN THE GIVEN THE STATE CONTEXT WHERE I STARTED, GIVEN SMALL CHANGES IN STATE AND FEDERAL POLICY, YOU SEE MAJOR IMPLICATIONS IN THE SAFETY NET.
WE ARE REALLY DEPENDENT ON ON REASONABLE POLICY, AND POLICY FAILS US. THERE ARE RAMIFICATIONS THAT IMPACT OUR NEIGHBORS, THAT IMPACT OUR CITY. THIS WILL CONTINUE TO HAPPEN IF WE AREN'T PROACTIVE, IF WE IF WE JUST LET THE STATE CONTINUE TO CUT, IF WE LET THE THE FEDERAL GOVERNMENT JUST CONTINUE TO UNDERMINE SAFETY NET PROGRAMS, WE WILL CONTINUE TO SHRINK AND FEWER AND FEWER SERVICES WILL BE PROVIDED TO OUR NEIGHBORS. AND WE'LL DO EVERYTHING WE CAN DO TO TO KEEP FIGHTING AND KEEP OUR DOORS OPEN. BUT BUT THIS SHOULD CREATE ANXIETY FOR EVERYONE. THIS IS NOT JUST AN ECONOMIC DEVELOPMENT ISSUE, IT'S A HUMANITARIAN ISSUE. SO I HOPE THAT, YOU KNOW, THIS THIS SLIDE IN PARTICULAR KIND OF MAKES IT REAL FOR EVERYONE THAT THAT IF IF FUNDING CONTINUES TO GO THE WAY THAT IT THAT IT HAS IN THE LAST COUPLE OF YEARS AND THE AND THE WAY THAT AT LEAST WE'RE SEEING FEDERAL POLICY GO NOW, THERE WILL BE MAJOR NEGATIVE IMPACTS ON ON OUR COMMUNITY. WE SEE ONGOING INFLATION AND MEDICAL COSTS AND ONGOING DISCRIMINATORY PAYMENT. PHARMACY MEDICAID HAS NOT YET REBOUNDED. YOU KNOW, IN THE ONE BIG BEAUTIFUL BILL, THERE WAS JUST SHY OF $1 TRILLION THAT WAS CUT FROM MEDICAID OVER TEN YEARS. TEXAS WON'T BE THE HARDEST HIT FROM THAT BECAUSE WE'RE NOT A MEDICAID EXPANSION STATE. THOSE STATES THAT WERE MEDICAID EXPANSION STATES HAVE MORE RIGOROUS RULES THAT ARE APPLIED, BUT WE WILL STILL BE STRETCHED IN TEXAS. THERE WILL STILL BE AN IMPACT. AND AND IT'S A DROP IN THE BUCKET. THE DOLLARS FOR RURAL HEALTH TRANSFORMATION, IT'S A IT'S A 50 BILLION ODD NATIONALLY AFTER THE 1 TRILLION WAS CUT FROM MEDICAID. AND THEN THERE'S NEW FEDERAL POLICY THAT'S UNDERMINING THE 340 BE SYSTEM.
AND THAT'S AND AND SOME OF THAT'S FROM THE INFLATION REDUCTION ACT. AND THEN THERE'S SOME NEW RULES AS WELL THAT'S UNDERMINING THE PHARMACY. SO. SO LAST SLIDE, WE PLAN TO BE THE THE CLINICAL PROVIDER OF CHOICE FOR LOW INCOME CHILDREN, PREGNANT PATIENTS. ANY SUPPORT THAT WE CAN GET PUBLICLY TO ENSURE THAT CHILDREN HAVE ACCESS TO HIGH QUALITY PRIMARY CARE, NOT NOT ONLY SERVES THE THE THE NEED OF OF THE COMMUNITY, BUT ALSO HELPS US TO KEEP OUR OUR DOORS OPEN. THE THE PHARMACY. WE WANT TO CONTINUE TO DRIVE CONVENIENT, LOW COST, EXCELLENT SERVICE. WE'RE SHIFTING OUR DENTAL CARE FROM ADULT HEAVY INTERVENTION HEAVY SERVICES TO PEDIATRIC PREVENTIVE FOCUS. WE'LL STILL DO SOME ADULT DENTAL CARE, BUT IT WON'T BE THE MAJORITY OF OUR CARE. YOU KNOW, WE'LL WE'LL DO OUR BEST TO SUSTAIN MORALE AND AND STAFF THRIVING WHILE MANAGING THE HEADWINDS THAT ARE COMING FROM MULTIPLE DIRECTIONS.
WE WILL STAY FOCUSED ON OUR MISSION OF COMMUNITY WELLNESS FOR ALL. FOR EVERY RESIDENT OF OUR COMMUNITY. AND AND WE HOPE TO COLLABORATIVELY WORK TOWARDS CRITICAL HEALTH POLICY CHANGES, AND WE WILL MAINTAIN SOLID SOLIDARITY WITH OUR PUBLIC ENTITIES COMMITTED TO THE COMMON GOOD. OPEN FOR QUESTIONS IF THERE ARE ANY. ANYBODY HAVE QUESTIONS OR COMMENTS FOR
[00:45:01]
DOCTOR GRIGGS? I HAVE A QUICK QUESTION. DOCTOR GRIGGS, THANK YOU VERY MUCH FOR THAT MOST INFORMATIVE PRESENTATION. SO I DIDN'T WANT TO STOP YOU. YOU WERE ON A ROLL. WACO PERCENTAGE OF MEDICAID PAY SO MUCH LOWER THAN THE STATE AVERAGE. DO YOU HAVE A HYPOTHESIS AS YOU MAY KNOW. SO THAT IS THAT'S OUR OUR SPECIFIC PAYER MIX, THE SLIDE THAT DEMONSTRATED OUR 31 VERSUS THE STATE'S 36. THAT'S AN AVERAGE OF FQHCS IN THE STATE. SO AND THE REASON FOR THAT IS THAT OTHER COMMUNITY HEALTH CENTERS FOR FOR DECADES HAVE BEEN FOCUSED ON THOSE POPULATIONS THAT THEY CAN BILL AND COLLECT FOR. SO SO WHILE THEY DON'T TURN ANYONE AWAY FOR INABILITY TO PAY, THAT'S A FEDERAL RULE. AND ALL OF MY COLLEAGUES AT ALL OF THE OTHER FQHCS IN TEXAS ARE VERY SERIOUS ABOUT THAT. THAT MISSION AND FOCUS. THEY HAVE SPECIFICALLY WORKED OVER THE YEARS ON A PEDIATRIC AND PREGNANT POPULATION EMPHASIS TO SUPPORT THEIR PAYER MIX ON THE MEDICAID FRONT. SO WE HAVE WE ARE ONLY NOW IN THE IN THE PAST FEW YEARS, HAVE REALLY BEGUN TO MAKE THAT A CORE EMPHASIS. SO WE HAVE SOME CATCHING UP TO DO.AND THAT'S BUT THAT'S THAT'S THE DIFFERENTIAL BETWEEN 31 AND 36% THAT I SHARED ON THAT SLIDE.
THANK YOU. THE. DATA YOU PRESENTED ABOUT WHERE TEXAS FALLS AND A LOT OF THESE CATEGORIES IS, AS A PROUD TEXAN IS DIRE. WE CERTAINLY NEED TO DO MORE AT LEVELS MUCH HIGHER THAN US HERE AT THE DAIS TO INCREASE AFFORDABILITY AND ACCESSIBILITY OF MEDICAL CARE IN OUR STATE. THE PRIMARY CARE STAT JUMPED OUT IN TERMS OF BEING 50TH FOR PER 100,000 PEOPLE. I'M ASSUMING YOU MENTIONED DENSITY A COUPLE TIMES. THAT IS TOTAL PRIMARY CARE PHYSICIANS IN THE STATE VERSUS THE POPULATION, NOT NUMBER OF PEOPLE UTILIZING A PRIMARY CARE PHYSICIAN. YES. THAT'S RIGHT. YEAH, THAT'S WHICH IS WILD TO THINK ABOUT WHEN YOU THINK ABOUT THE AMOUNT OF TIME YOU NORMALLY GET WITH YOUR PRIMARY CARE PHYSICIAN, PRIMARY CARE PHYSICIAN BEING SO LOW ALREADY, I THINK THE AVERAGE IS LIKE 13 MINUTES AND FIVE OF THAT IS NOTES. SO I WOULD IMAGINE THAT'S EVEN SHORTER HERE IN TEXAS. MOST OF MY VISITS ARE PRETTY QUICK. I'M FORTUNATE THAT I'M RELATIVELY HEALTHY. SO AGAIN, THAT IS ALL GREAT CONTEXT. WE CAN'T DO AS MUCH ABOUT THAT AS AS I WOULD LIKE FROM WHERE WE'RE SITTING NOW. BUT IN TERMS OF, YOU KNOW, WHAT WE CAN DO TO MAKE SURE THAT THE HEADWINDS ARE MITIGATED, TO THE EXTENT THAT WE CAN IMPACT THAT. IS THERE ANYTHING THAT THAT YOU GUYS HAVE IN HOUSE THAT YOU'RE WORKING ON THAT, THAT WE CAN COME ALONGSIDE OR PARTNER WITH OUTSIDE OF WHAT WE'RE DOING RIGHT NOW KNOWING THAT WE DON'T HAVE UNLIMITED FUNDS ON OUR END EITHER? YEAH. THANK YOU FOR THAT. THAT QUESTION, COUNCILMEMBER JUNG I. IN THE IMMEDIATE MOMENT, I THINK AWARENESS IS KEY. I MEAN, I THINK HAVING THIS CONVERSATION.
RECOGNIZING THE CIRCUMSTANCES THAT WE'RE IN AND AND BEGINNING TO HAVE ONGOING CONVERSATIONS ACROSS THE COMMUNITY AROUND THE CIRCUMSTANCES THAT TEXAS IS IN AND THE THREAT THAT EXISTS TO OUR OWN COMMUNITY. IF THINGS CONTINUE TO TO GO IN THIS DIRECTION, I THINK IS THE MOST IMPORTANT THING THAT THAT OUR COMMUNITY LEADERS CAN DO. SO I THINK IF THIS BECOMES SOMETHING THAT THAT YOU'RE HAVING CONVERSATIONS ABOUT WITH, WITH FRIENDS AND BUSINESS LEADERS SAYING, HEY, THIS THE STATUS QUO IS NOT ACCEPTABLE BECAUSE IT'S LEADING TO A VERY DANGEROUS PLACE WHERE IF IF HEALTHCARE IS CORE INFRASTRUCTURE IN OUR COMMUNITY AND IT'S AND IT'S BEING UNDERMINED AND WE IT SHOULD BE CONCERNING FOR ALL OF US. LET'S BEGIN TO PROBLEM SOLVE TOGETHER. I THINK I THINK THAT RIGHT NOW IS MUCH MORE VALUABLE THAN, THAN A, YOU KNOW, A FEW TENS OF THOUSANDS OF DOLLARS FOR THIS INITIATIVE OR THAT INITIATIVE.
I THINK WE'RE GOING TO SOLVE THIS TOGETHER AS A COMMUNITY, BECAUSE ALL OF US RECOGNIZE HOW DIRE THINGS ARE AND THE TRAJECTORY THAT WE'RE ON BY THE BY THE TIME, YOU KNOW, THIS IS A SORT OF A THE PROVERBIAL BOILING FROG, BY THE TIME THE FROG IS DEAD, YOU KNOW, WE'VE WE'VE MISSED A WHOLE LOT OF OPPORTUNITIES TO TURN DOWN THE FLAME AND TO AND TO SHIFT. SO WE'VE GOT TO ACT NOW BEFORE, BEFORE THINGS GET A WHOLE LOT WORSE. THANKS. AND ONE LAST
[00:50:03]
THING. I FEEL LIKE I ASK THIS EVERY TIME YOU COME JUST TO REINSTITUTE MY UNDERSTANDING OF IT AND EDUCATE ANYONE WATCHING. COULD YOU BRIEFLY EXPLAIN THE 340 PROGRAM, HOW IT WORKS BEST WHEN IT'S OPTIMIZED FOR WACO FAMILY AND GENERALLY? ABSOLUTELY. THANK YOU FOR THAT.THAT QUESTION. SO BY VIRTUE OF BEING A COMMUNITY HEALTH CENTER, WE WE'RE PRIVATE NONPROFIT THAT HAS THE SORT OF FEDERAL GOVERNMENT'S GOOD HOUSEKEEPING SEAL OF APPROVAL. WE MEET ALL THEIR REQUIREMENTS. THEY GIVE US THE DESIGNATION AS BEING A COMMUNITY HEALTH CENTER UNDER THE PUBLIC HEALTH SERVICE ACT, SECTION 330. WE'RE ABLE TO BILL ENHANCED REIMBURSEMENT FROM CMS. WE HAVE FEDERAL TORT CLAIMS ACT PROTECTION. THERE ARE BENEFITS TO BEING AN FQHC. ONE OF THE KEY BENEFITS IS THE FEDERAL PHARMACY STATUS. SO WE'RE A 340 B SECTION 340 B OF THE PUBLIC HEALTH SERVICE PHARMACY, WHICH ALLOWS US TO OUR COST OF GOODS SOLD, OUR INVENTORY, OUR THE MEDICATIONS WE'RE ABLE TO PURCHASE, THOSE AT THE FEDERALLY NEGOTIATED BEST PRICE.
SO WHEN IT'S NOT A IT'S THERE ARE NO TAX PAYER DOLLARS THAT SUPPORT OUR PHARMACY. BUT WE BENEFIT FROM THE FEDERALLY NEGOTIATED PRICE BETWEEN THE FEDS AND THE DRUG MANUFACTURERS.
SO WE GET THE BEST PRICE FOR OUR INVENTORY. AND WHEN WE BILL COMMERCIALLY INSURED INSURANCE PROGRAMS, WHEN PATIENTS COME TO US THAT HAVE AETNA OR BLUE CROSS, WE BILL INSURANCE AT THE RETAIL PRICE. SO THE SPREAD IS QUITE HIGH BECAUSE WE GET OUR INVENTORY AT SUCH INEXPENSIVE PRICES. BUT AGAIN, THE THREE FOUR. SO THAT'S A SIZABLE MARGIN FOR FOR FOR MEDICATIONS AMONG COMMERCIALLY INSURED INDIVIDUALS. AND THEN MEDICARE PART D. SIMILARLY WE HAVE A FAIRLY SIZABLE MARGIN. BUT THE REQUIREMENT IN THE 340 B PROGRAM IS THAT THAT SPREAD THAT MARGIN. IF WE WERE A FOR PROFIT ENTITY, I'D SAY PROFIT. THE PROFIT THAT WAS GENERATED IN THE PHARMACY, THAT MARGIN THAT'S GENERATED IN THE PHARMACY HAS TO BE PUT BACK INTO THE SYSTEM TO CARE FOR THOSE WHO ARE UNINSURED OR UNDERINSURED. SO SO THAT'S SOME OF THAT OFFSET IN THE THE 8 MILLION OF UNINSURED. THAT'S THAT'S COST FOR UNINSURED THAT THAT ARE IN WACO CITY LIMITS. SO SO THAT'S THE THE 340 B PROGRAM. GREAT. THANKS. YEAH.
ANY OTHER COMMENTS? DOCTOR GRIGGS THANKS. I REALLY APPRECIATE YOUR LEADERSHIP IN THE COMMUNITY. AND I SIT ON A COUPLE OF BOARDS WITH YOU AND THE COMMUNITY. SO LUCKY TO HAVE YOU AS PART OF IT. AND I LOVE YOUR GRASP OF THE DATA AND HOW YOU ARTICULATE IT SO WELL. AND IT'S, IT'S IT'S A IT'S A WONDERFUL THING TO SEE. AND THE CHALLENGES ARE AMAZING. I MEAN, EVERY TIME I'VE SEEN THIS PRESENTATION A COUPLE OF TIMES AND A COUPLE OF ITERATIONS, IT'S KIND OF A SCARY DEAL BECAUSE WE HAVE AT THE CITY, WE'VE GOT INFLATION. SO IT'S KIND OF IT HITS EVERYBODY IN HOUSING AND BUSINESS AND CITY SERVICES AND EVERYTHING. BUT ON TOP OF THAT, YOU'RE CHALLENGED BY FED KIND OF FED PROGRAMS THAT YOU DON'T KNOW THE STABILITY OF THOSE OR THE, THE, THE SCOPE OR THE FUTURE OF THOSE. SO I APPRECIATE YOU HELPING LEAD THIS CRITICAL SERVICE TO THE COMMUNITY. AND I JUST APPRECIATE YOU AND YOUR FRIENDSHIP. AND IT'S YOU'RE A GREAT ASSET FOR WACO. THANK YOU FOR THE KIND COMMENTS, MAYOR.
AND, YOU KNOW, THE RESPECT IS ABSOLUTELY MUTUAL. I APPRECIATE ALL OF WHAT YOU DO FOR OUR CITY.
THANKS, JACKSON. THANK YOU. NEXT ITEM IS WORK SESSION 2020 5-9 HUNDRED ON THE WACO CONVENTION CENTER. CITY MANAGER FORD, WE'VE GOT LISA BLACKMAN, ASSISTANT CITY MANAGER, AS WELL AS HANNAH ANDERSON COMING DOWN FROM OUR OFFICE. COLIN BOOTH, MANAGING DIRECTOR OF FINANCE, MR. DREAM TEAM COMING UP, GOING TO PRESENT AN UPDATE, AN EARLY OVERVIEW OF THE CONVENTION CENTER'S TRANSITION TO PRIVATE MANAGEMENT UNDER LEGENDS GLOBAL, FORMERLY A COMPANY CALLED ASM GLOBAL AND COUNCIL. JUST FOR A KIND OF A VIEW ON OUR SCHEDULE HERE, WE WILL DO THE LENGTHY EXECUTIVE SESSION. WE'LL PROBABLY BUMP THE THIRD WORK SESSION INTO JANUARY, SO WE HAVE NEED TO BE BACK IN FOR A WHILE. SO WE'LL BRING BACK CHIEF FERGUSON IN JANUARY. LISA, THANK YOU, CITY MANAGER FORD. GOOD AFTERNOON, MAYOR AND COUNCIL. THANK YOU FOR THE OPPORTUNITY TO PRESENT TODAY. SO AS AS CITY MANAGER FORD SAID, I'M LISA BLACKMAN, ASSISTANT CITY MANAGER. I'M JOINED WITH COLIN BOOTH, OUR MANAGING DIRECTOR OF FINANCE, AND HANNAH ANDERSON, ASSISTANT DESTINATION DEVELOPMENT OFFICER. WE'RE HERE TO PROVIDE YOU AN UPDATE ON THE WACO CONVENTION CENTER'S OPERATIONS. SO THE PURPOSE OF TODAY'S UPDATE IS TO PROVIDE AN OVERVIEW OF THE WACO CONVENTION CENTER MANAGEMENT TRANSITION TO LEGENDS GLOBAL, FORMERLY KNOWN AS ASM GLOBAL. WE WILL PROVIDE A CONTEXT ON THE TRANSITION PROCESS, REFLECT ON CURRENT PERFORMANCE, AND DISCUSS THE FUTURE OUTLOOK TO ENSURE WE'RE ALIGNED ON THIS IMPORTANT
[00:55:03]
COMMUNITY ASSET. OUR AGENDA FOR TODAY IS WE'RE GOING TO REVIEW THE BACKGROUND AND CONTRACT OVERVIEW. WE'RE GOING TO DISCUSS TRANSITION INSIGHTS AND REFLECT ON 2025. LOOK AT THE EVENT OVERVIEW AND ACTIVITY OVER THE LAST YEAR. LEGENDS GLOBAL, THEIR OPERATIONS AND PERFORMANCE FINANCIAL OVERVIEW. AND THEN WE'LL END WITH A SUMMARY. SO THE BACKGROUND WACO CONVENTION CENTER OPENED IN JANUARY OF 1972, AND THE CVB WAS ESTABLISHED IN 1983. BACK IN SEPTEMBER OF 2015, THE CITY ENGAGED JONES LANG LASALLE, ALSO KNOWN AS JLL, TO ASSESS THE MARKETING AND OPERATION EFFECTIVENESS OF THE CONVENTION CENTER, AND THEY REVIEWED THE GOVERNANCE MODEL TO DETERMINE WHETHER IT WOULD BE A MUNICIPALLY RUN OR PRIVATELY RUN. IN AUGUST OF 2017, JLL DELIVERED THAT MODEL OR DELIVERED THE REPORT TO THE CITY AND RECOMMENDED THAT ACTUALLY THE CONVENTION CENTER AND THE CVB, THEY RECOMMENDED THAT TRANSITION BOTH TO PRIVATE MANAGEMENT AND IMPLEMENT AN EVENT BOOKING POLICY. THE CITY AT THAT TIME DECIDED TO IMPLEMENT THE BOOKING POLICY, BUT THEY ALSO DECIDED TO PAUSE ON THE MANAGEMENT TRANSITION. SO WE THE DISCUSSION RESUMED IN 2022 OF WHETHER OR NOT TO PURSUE PRIVATE MANAGEMENT. IN MAY OF 2024, WE PRESENTED YOU WITH PRIVATE MANAGEMENT RECOMMENDATIONS AND TO LAUNCH AN RFP AND WHAT THAT TIMELINE WOULD LOOK LIKE IN SEPTEMBER OF 2024, WE PRESENTED YOU THE RESULTS OF THE RFP, AND WE RECOMMENDED THAT WE MOVE FORWARD WITH A PRIVATE MANAGEMENT CONTRACT IN OCTOBER OF 2024, WE OR CITY COUNCIL APPROVED THAT QUALIFIED MANAGEMENT AGREEMENT WITH LEGENDS GLOBAL. THERE WERE 26 EMPLOYEES EMPLOYED AT THE CONVENTION CENTER AT THAT TIME, AND WE WERE PROUD TO REPORT THAT 11 REMAINED WITH THE CITY UNDER THE DMO. THE NEW DMO DEPARTMENT EIGHT TRANSITIONED WITHIN THE CITY INTO OTHER DEPARTMENTS, THREE TRANSITIONED TO LEGENDS GLOBAL AND FOUR RETIRED. AND THEN AS OF DECEMBER 2024, LEGENDS GLOBAL BEGAN FULL OPERATION OF THE CONVENTION CENTER. CONTRACT OVERVIEW. SO THE INITIAL TERM OF THE CONTRACT IS TEN YEARS, AND THE LEGENDS GLOBAL IS TO MAINTAIN AT LEAST 50% OF BOOKINGS TO BE BOOKINGS THAT GENERATE HOTEL OCCUPANCY WHILE MAINTAINING LOCAL USE OF THE FACILITY AS WELL. THE CITY CAN USE THE FACILITY WITHOUT ROOM RENTAL FEES. LEGENDS IS ALSO COMMITTING 750,000 IN CAPITAL CONTRIBUTIONS WITHIN THE FIRST TWO YEARS OF THE CONTRACT. THE ANNUAL FIXED MANAGEMENT FEE STARTS AT 120,000 FOR FISCAL YEAR 25, AND IT INCREASES BY 3% OR CPI ANNUALLY, WHICHEVER IS GREATER. ADDITIONAL FEES INCLUDE A 4% COMMISSION ON GROSS CATERING SALES AND 15% ON NEW SPONSORSHIP REVENUES. QUALITATIVE AND QUANTITATIVE INCENTIVES ARE CAPPED AT THE FIXED MANAGEMENT FEE, SO FOR 25 IT WAS 120,000. THAT WOULD BE THE CAP. AND HANNAH WILL REVIEW THOSE INCENTIVES SHORTLY. SO AT THIS TIME I'LL PASS IT OVER TO HANNAH TO DISCUSS TRANSITION INSIGHTS. THANK YOU LISA. SO AS WE MOVE INTO SOME SPECIFICS OF THE FIRST YEAR, IT'S IMPORTANT TO REMEMBER THAT THIS WAS A TRANSITION YEAR. PRIVATE MANAGEMENT MODELS DO NOT SHOW THEIR FULL IMPACT RIGHT AWAY, DUE TO THE NATURE OF THE BOOKING OF THE CONVENTION BOOKING CYCLE. LARGER EVENTS, LARGER CONVENTIONS. BOOK ABOUT 18 TO 36 MONTHS OUT. THEREFORE, BY THE TIME LEGENDS GLOBAL CAME ON IN DECEMBER OF 2024, THEY THE CALENDAR WAS ALREADY FILLED WITH THE LARGER EVENTS THAT WOULD BE THERE FOR THE YEAR. SO THEY INHERITED THE SALES PIPELINE THAT WAS ALREADY EXISTING. SO THIS YEAR'S PERFORMANCE, IT'S NOT A REFLECTION OF THEIR ABILITY, IT'S SIMPLY THE REALITY OF THE BOOKING CYCLE. AND WE EXPECT A MORE ACCURATE EVALUATION WINDOW IN FUTURE CONTRACT YEARS WHEN THEIR SALES EFFORTS ARE FULLY REALIZED. ANOTHER KEY PIECE OF CONTEXT IS FUNDING. CONVENTION CENTER OPERATIONS ARE AN ALLOWABLE USE OF FUNDS COLLECTED BY HOTEL OCCUPANCY TAXES, AND THE CONVENTION CENTER HERE IN WACO HAS HISTORICALLY RECEIVED THOSE FUNDS AS REVENUE TO SUPPORT OPERATIONS. GOING BACK TO 2018, THE AVERAGE HAS BEEN ABOUT $2.2 MILLION TO SUPPORT THOSE OPERATIONS. AND THIS LEVEL OF REINVESTMENT IS CONSISTENT WITH COMPARABLE CITIES AND ENSURES THAT TOURISM, RATHER THAN THE GENERAL FUND, WILL SUSTAIN THE FACILITIES OPERATIONS. WHEN WE LOOK BACK AT FY 25, THE BIGGEST FACTOR INFLUENCING REVENUE WAS A DECREASE IN LARGE EVENTS, WHICH AGAIN TIES BACK TO THE BOOKING CYCLE AND INHERITED EVENTS CALENDAR. GIVEN THOSE LIMITATIONS, LEGENDS GLOBAL FOCUS THEIR FIRST YEAR EFFORTS ON FILLING GAPS IN THE CALENDAR WITH SOME OF THOSE SHORTER WINDOW BOOKINGS, THEY MANAGE THEIR EXPENSE BUDGET REALLY[01:00:01]
WELL, AND THEY'VE PUT A LOT OF EFFORT INTO ENHANCING OPERATIONS AND THE CATERING DEPARTMENT. SO SOME QUICK STATS AT THE BOTTOM. THE CITY AND LEGENDS GLOBAL WORKED 285 LEADS IN THE FIRST YEAR. THEY CONTRACTED 181 EVENTS, 20 OF 21 OF THOSE BEING P-1S. THE CONVERSION RATE WAS 64%, WHICH IS VERY GOOD. AND AS I'LL GET INTO A LITTLE BIT LATER, THEY CONTRIBUTED $409,000 TOWARDS CAPITAL IMPROVEMENT. SO THIS FOCUS OVER THE YEAR HELPED STABILIZE OPERATIONS AND SET THE FACILITY UP FOR SUCCESS AS WE GO FORWARD. DESPITE THAT SHORTFALL IN REVENUES, WHICH I'LL GET INTO. SO QUICK QUESTION. THOSE LEADS WERE FOR EVENTS GOING FORWARD IN 18 TO 36 MONTHS. THAT'S CORRECT. FOR ANY ANY POINT INTO THE FUTURE.AND HOW DO THOSE LEADS COMPARE TO PRIOR YEARS? I DON'T HAVE THAT NUMBER IN FRONT OF ME. I COULD LOOK BACK AND SEE AND GET THAT OVER TO YOU. SO HERE YOU SEE THE BOOKING POLICY THAT WAS ADOPTED IN 2017. AS MISS BLACKMAN HAD MENTIONED. AND THE GOAL OF THIS BOOKING POLICY WAS TO INCREASE OUR CITYWIDE CONVENTIONS, WHICH GENERATE HOTEL OCCUPANCY TAXES WHILE BALANCING THE NEEDS OF LOCAL EVENTS. SO PRIORITY ONE EVENTS ARE THE HIGHEST ECONOMIC IMPACT.
THEY HAVE THE MOST HOTEL NIGHTS, AND THEY HAVE THE LONGEST BOOKING WINDOW OF 18 MONTHS OR MORE. PRIORITIES TWO AND THREE. THESE EVENTS STILL HAVE A CONSIDERABLE ECONOMIC IMPACT, THE LOWER THAN THE PRIORITY ONE, AND THEY HAVE A SHORTER BOOKING WINDOW. AND WHILE THEY'RE NOT SHOWN HERE, PRIORITY FOUR AND FIVE EVENTS WERE IDENTIFIED IN OUR BOOKING POLICY AS WELL.
THOSE ARE LOWER IMPACT. THEY TEND TO BE LOCAL EVENTS WITHOUT ANY ROOM NIGHTS, AND THEY'RE NOT THE FOCUS OF OUR SALES STRATEGIES. AND SO THIS POLICY IS ESSENTIAL FOR MANAGING THE SPACE AND MAKING SURE THAT WE'RE MAXIMIZING ECONOMIC IMPACT OF THE BUILDING WHILE STILL WELCOMING COMMUNITY USE. THIS EVENT MIX GOING FORWARD TO FISCAL YEAR 2029 SHOWS HOW THAT THAT BOOKING POLICY HELPS US BALANCE THE CALENDAR AND HOW WE ARE PACING OVER OVER SEVERAL YEARS. A FACILITY SHOULD FILL THE CALENDAR WITH THOSE P ONES FIRST, AND THEN FILL IN WEEKENDS AND SMALLER TIME FRAMES WITH OTHER PIECES OF BUSINESS. SO IN LOOKING AT 2025, YOU CAN SEE THAT THERE WERE FEWER P ONE GROUPS THAN THE YEAR BEFORE, ABOUT FIVE FIVE FEWER. BUT IN FY 26 THERE ARE 27 CONFIRMED AND THREE CONTRACTS THAT ARE ALREADY ON THE BOOKS. SO SOME EXAMPLES OF SOME NEW PRIORITY ONE BOOKINGS INCLUDE THE NATIONAL GUARD ASSOCIATION OF TEXAS ANNUAL CONFERENCE AND THE COLLEGIATE ESPORTS COMMISSIONER'S CUP MADE MADNESS, BOTH OCCURRING IN CALENDAR YEAR 2026. SO JUST LOOKING AT THAT FY 25 NUMBER, THIS CAN THIS IS PART OF THE REASON FOR THOSE LOWER REVENUES THAT WE WILL GET INTO. SO NEXT COUPLE SLIDES WE'LL GO OVER SOME OF THE DETAILS OF THE CONTRACT AND ACTUALS. ACTUAL PERFORMANCE. IN THE LAST FISCAL YEAR THE ANNUAL FIXED MANAGEMENT FEE IS $120,000.
LEGENDS GLOBAL IS ENTITLED TO 4% OF SALES FROM FOOD AND BEVERAGE, AS WELL AS 15% OF REVENUES FROM ANY COMMISSION, ANY SPONSORSHIP COMMISSIONS. THE INCENTIVE STRUCTURE IS HAS TWO PARTS. QUANTITATIVE. THIS IS THE 20% OF ANY IMPROVEMENT IN ACTUAL REVENUES VERSUS BUDGETED REVENUES, NOT TO EXCEED HALF OF THE FIXED MANAGEMENT FEE. AND THEN QUALITATIVE. THESE ARE BASED ON KPIS SEEN THERE AT THE LEFT OF YOUR SCREEN. THESE ARE A POINT SYSTEM AS LINED OUT IN THE CONTRACT. AND AGAIN IT'S NOT TO EXCEED HALF OF THE FIXED MANAGEMENT FEE. AND JUST AS A NOTE, THE FIXED FEE AND THUS INCENTIVE PAY WILL ADJUST UPWARDS BY 3% ANNUALLY. FOR THE FOOD AND BEVERAGE SPONSORSHIP COMMISSION AND FIXED MANAGEMENT FEE. YOU CAN SEE THE ACTUALS PAID HERE. THE FOOD AND BEVERAGE COMMISSION AMOUNT TOTALED $5,667. SPONSORSHIP COMMISSION IS NOT SOMETHING THAT WAS EXPLORED IN THE FIRST YEAR, SO THERE WAS NO IMPACT HERE. AND THEN FINALLY THE FIXED MANAGEMENT FEE. IT IS NOT PERFORMANCE BASED. IT IS PAID MONTHLY IN $10,000 INCREMENTS. IS THAT SPONSORSHIP FOR LIKE AN OVERALL FOR THE CENTER ITSELF. SO IT CAN BE A FEW DIFFERENT THINGS. IT CAN IT COULD BE
[01:05:02]
NAMING RIGHTS. IT COULD BE SPONSORING A SPECIFIC PART OF AN EVENT. SO LIKE YEAH, SIGNAGE, A COFFEE STATION, SIMILAR. ANYTHING LIKE THAT. YEAH. YOU MAY SAY THAT THE DATA IS YEAR TO DATE THROUGH NINE MONTHS. RIGHT. SO THAT IS FROM 12 ONE, 2024 THROUGH SEPTEMBER 30TH, 2025, TEN MONTHS. YES. OKAY. IS THERE A MEASUREMENT ON A CALENDAR YEAR WHERE THEY STARTED IN? WE STARTED IN DECEMBER. RIGHT. THEY THEY TOOK OVER OPERATIONS ON DECEMBER 1ST OKAY. ALL RIGHT. HERE WE HAVE THE QUALITATIVE INCENTIVES. SO THIS PART OF THE INCENTIVE STRUCTURE HELPS ALIGN PERFORMANCE WITH PRIORITIES BEYOND JUST REVENUE. THERE ARE FIVE METRICS LINED OUT IN THE CONTRACT. FIRST WE HAVE ROOM NIGHTS. THIS IS MEASURED AS A PERCENTAGE. IT'S THE MEASURE OF THE CONVENTION CENTER'S MARKET SHARE OF OVERALL DMO BOOKED ROOM NIGHTS USING THE INDUSTRY STANDARD OF 20 TO 30% FOR MIDSIZE FACILITIES. ALLOWS US TO COMPARE TO THE ACTUAL DMO PERFORMANCE RATHER THAN A STRICT VALUE, SINCE BOTH THE NUMERATOR THE CONVENTION CENTER ATTRIBUTED NIGHTS AND THE DENOMINATOR TOTAL DMO NIGHTS DECREASE OR INCREASE AT SIMILAR RATES, THIS PERCENTAGE PROPORTION WILL REMAIN STABLE YEAR OVER YEAR. THE BUILDING OCCUPANCY BENCHMARK COMES FROM ACTUAL FACILITY UTILIZATION.GOING BACK TO 2016, THAT WAS 29% AVERAGE. WE INCREASED THE GOAL TO 32% FOR LEGENDS GLOBAL, AND EVEN WITH FEWER EVENTS, THEY DID MEET THIS, MEET THIS GOAL, THE CENTER ACHIEVED A HIGHER UTILIZATION RATE, WHICH COULD BE ATTRIBUTED TO MORE EFFICIENT BOOKING OF AVAILABLE DAYS, BETTER SPACE TURNOVER OR LONGER MULTI-DAY EVENTS FOR CUSTOMER SATISFACTION, AN ACCEPTABLE RATE FOR MOST CONVENTION CENTERS FALLS IN THE 80 TO 85% RANGE. WE CHOSE THE MIDPOINT OF 83% FOR OUR GOAL. WHILE WE DID RECEIVE AND SORRY, I SAY WE BECAUSE I WORKED IN THIS BUILDING WHEN THE CITY MANAGED THE FACILITY, THEY RECEIVED CUSTOMER SATISFACTION SURVEYS, BUT THERE WAS NO GRADING ATTACHED. LEGENDS GLOBAL DOES HAVE A SOFTWARE WHICH ALLOWS FOR THIS, SO THEY SEND THEM TO ATTENDEES OF CONVENTIONS AS WELL AS THE MEETING PLANNERS THEMSELVES, AND THEY ARE ABLE TO SEE HOW THEY'RE DOING BASED ON TECHNOLOGY, CLEANLINESS OF THE BUILDING STAFF, RESPONSIVENESS MEASURES LIKE THIS. AND THEN FINALLY WE HAVE BUILDING MAINTENANCE AND CONTRACT COMPLIANCE. THESE ARE BOTH PASS FAIL. WE WORKED WITH FACILITIES OR THE CITY OF WACO FACILITIES DEPARTMENT TO COME UP WITH A GRADING SYSTEM FOR THE FACILITY ITSELF, WHICH IS DONE QUARTERLY AND REVIEWED BY THE CONTRACT ADMINISTRATORS. AND THEN CONTRACT COMPLIANCE IS BASED ON MANAGING THE BUDGET, STICKING TO THE TERMS OF THE CONTRACT. AND THEY DID PASS BOTH OF THOSE. AND SO EVEN THOUGH ON THIS ONE.
SO EVEN THOUGH WE'RE WE'RE NOT KIND OF GETTING WHERE WE WANT TO GET THIS IS TELLING ME WE'RE STILL DOING BETTER THAN WE HAVE BEEN. IS THAT RIGHT? BECAUSE USING THAT FIRST COLUMN BENCHMARK IS SORT OF WHERE WE'VE BEEN 29%, EIGHT YEAR AVERAGE ON OCCUPANCY. WE WANTED TO GET TO 32 AND WE ACTUALLY GOT TO 35. SO 35 DOESN'T SOUND THAT GREAT. BUT IN THE CONTEXT OF 29, IT SOUNDS PRETTY DAMN GOOD I GUESS. YES. AND WE'RE THINKING THAT'S GOING TO BE EVEN BETTER OVER THE TWO AND THREE YEARS. OKAY. YES. WE WANTED TO SET ACHIEVABLE GOALS AND SET LEGENDS GLOBAL UP FOR SUCCESS IN THIS FIRST YEAR AS WE WORK TOGETHER THROUGH THE HANDOFF. RIGHT. AND THEN THE OTHER PART OF THE INCENTIVES IS THE QUANTITATIVE. THIS IS BASED ON THE ACTUAL REVENUES BROUGHT IN VERSUS THE BUDGETED REVENUES. SO THEY ARE ENTITLED TO 20% OF THE IMPROVEMENT. THEY DID NOT MEET THAT THIS YEAR DUE TO REVENUES COMING IN BELOW WHAT WAS BUDGETED, BUT THAT MAXIMUM WOULD BE HALF OF THE INCENTIVE, HALF OF THE MANAGEMENT FEE.
THIS SHOWS THAT THE TOTAL COST OF PRIVATE MANAGEMENT IN FY 25. SO AS WE WENT OVER, THEY DID MEET THEIR QUALITATIVE INCENTIVES AND WERE AWARDED $60,000. THAT FOOD AND BEVERAGE COMMISSION WAS 5667. THE FIXED MANAGEMENT FEE WAS 120,000, RESULTING IN A TOTAL COST PAID TO LEGENDS GLOBAL OF 185,667. THIS OUTLINES THE CIP CONTRIBUTIONS MADE BY LEGENDS
[01:10:09]
GLOBAL. AS LISA HAD MENTIONED IN THE CONTRACT OVERVIEW, THEY'RE REQUIRED TO CONTRIBUTE $750,000 IN THE FIRST TWO YEARS TO INVEST INTO THE BUILDING. A LOT OF THE DOLLARS WERE SPENT ON FOOD AND BEVERAGE IMPROVEMENTS, SO ACTUAL INFRASTRUCTURE WITHIN THE KITCHEN BUYING NEEDED EQUIPMENT AFTER WE HAD DIMINISHED OUR CAPACITY AFTER COVID. AND SO THEY WERE BUILDING THAT BACK UP TO MAKE SURE THAT WE WERE FULL SERVICE AGAIN. THE CITY HAD DONE A GREAT JOB MAINTAINING THE FACILITY. THIS IS JUST ADDED INVESTMENT THAT ALLOWS US TO MEET ALL OF OUR PLANNERS NEEDS. SO BY THE END OF FY 25, THEY HAD EITHER SPENT OR APPROVED $409,648. THEY HAVE A REMAINING $340,352 TO INVEST BY THE END OF THIS FISCAL YEAR, AND THAT THAT IS LEGENDS MONEY THAT THEY'RE USING TO. THAT'S CORRECT. THEIR CAPITAL IS GOING INTO THIS. OKAY. YEAH. RIGHT. AND AT THIS TIME I'LL TURN IT OVER TO COLIN TO TALK THROUGH THE DETAILS OF THIS REPORT. GREAT. THANKS, HANNAH. GOOD AFTERNOON, MAYOR AND CITY COUNCIL. SO AS MAYOR HAD ALLUDED TO EARLIER, THIS IS THE STUB YEAR. THE FIRST YEAR IS THE STUB YEAR. IT IS ONLY TEN MONTHS WORTH OF DATA. BUT THIS FIRST SLIDE SHOWS THESE REVENUES. AND AGAIN, THIS STARTS DECEMBER 1ST AND GOES THROUGH THE END OF OUR FISCAL YEAR, WHICH IS 930 OF 2025. I WANT TO MENTION WHEN I TALK ABOUT ALL OF THESE NUMBERS, THESE ARE ALL UNAUDITED NUMBERS. WE'RE CURRENTLY GOING THROUGH YEAR END WITH THE AUDITORS. AND JUST WANTED TO MENTION THAT THERE MIGHT BE SOME CHANGES IN THESE NUMBERS AS WE CLOSE OUT THE BOOKS AND PRESENT THE AUDIT TO YOU ALL IN FEBRUARY. SO THESE ARE UNAUDITED NUMBERS.THESE ARE THE REVENUES. AND SO THESE ARE BROKEN DOWN INTO DIRECT EVENT INCOME AND ANCILLARY INCOME. YOU CAN SEE THE BUDGET IS THE SECOND COLUMN BASICALLY THE MIDDLE COLUMN WITH THE TOTAL OF $1,627,430. TOTAL ACTUAL REVENUES WERE $1,035,920, FOR A NEGATIVE VARIANCE OF $591,510. WHEN WE LOOK BACK UP AT THE DIRECT EVENT INCOME, MOST OF THAT NEGATIVE VARIANCE WAS IN THAT RENTAL INCOME, 358,000 OF A NEGATIVE VARIANCE, OFFSET BY AN $87,507 POSITIVE VARIANCE IN NET SERVICE INCOME. WHEN WE CONTINUE DOWN THE COLUMN LOOKING AT THE VARIANCES, WE'VE HAD SOME MINOR POSITIVE VARIANCES IN SOME OF THE OTHER REVENUE CATEGORIES, BUT THEY WERE OFFSET BY NEGATIVE VARIANCES IN FOOD AND BEVERAGE, CATERING AND EQUIPMENT RENTALS. SO AGAIN, JUST RECAPPING 1,627,430 WAS THE BUDGET COLLECTIONS WERE 1,035,920. ON THAT SIDE FOR A SECOND. YES, SIR. HERE'S WHERE THE DISCONNECT TO ME WAS COMING IN. BECAUSE A COUPLE PAGES EARLIER SAYING WE INCREASED OUR BUILDING OCCUPANCY FROM 29% AVERAGE TO 35, AND YET OUR INCOME IS DROPPED. I'M JUST TRYING TO FIGURE OUT THAT IF OUR IF THE OCCUPANCY WENT UP, HOW DID OUR INCOME GO DOWN? AND I'LL TAKE A CLOSER LOOK AT THE NUMBERS. YOU DON'T HAVE TO ANSWER IT RIGHT NOW, BUT THAT PART I JUST DON'T I DON'T KNOW HOW TO RECONCILE THOSE TWO DATA POINTS. AND AND WE CAN WE CAN SHARE WITH YOU OUTSIDE OF THIS MEETING THE OCCUPANCY NUMBERS FOR EACH YEAR BACK TO 2016.
SOME OF THE YEARS WERE QUITE LOW AND SOME OF THEM WERE WERE IN THE IN THE 30S. AND SO THAT 29% IS THE AVERAGE OF THE NINE YEARS OR THE EIGHT YEARS I GUESS, COMBINED. BUT WE CAN DIVE DEEPER AND GET THAT INFORMATION TO YOU. OKAY. OKAY. THE NEXT SLIDE SHOWS THE EXPENSES FOR THE WACO CONVENTION CENTER. THE TOTAL OPERATING EXPENSES YOU CAN SEE BROKEN DOWN BY THE CATEGORIES. THEIR TOTAL BUDGET WAS $3,176,110. ACTUALS CAME IN JUST RIGHT UNDER BUDGET FAVORABLE VARIANCE JUST AT $6,040. SO TOTAL OPERATING EXPENSES WERE $3,170,069. YOU CAN SEE THAT THE NET SURPLUS DEFICIT WAS PLANNED AND BUDGETED AT $1,548,679, CAME IN AT 2,134,149, WHICH WAS A NEGATIVE VARIANCE OF $585,470 THERE ON THE EXPENSES. AND AGAIN, WE DO JUST HAVE THAT NOTE AT THE BOTTOM, WHICH
[01:15:05]
REFERENCES, AGAIN, THOSE CIP CONTRIBUTIONS WHICH ARE NOT INCLUDED IN THESE NUMBERS WAS AN ADDITIONAL $409,648 OF MONEY THAT LEGENDS GLOBAL HAD SPENT ON CAPITAL CONTRIBUTIONS, SO THAT $2.1 MILLION WILL BE WILL ULTIMATELY COME FROM THE HOTEL OCCUPANCY TAX. THAT. THAT'S CORRECT AND ALL. COUNCILMAN, I'LL GET INTO THAT A LITTLE BIT MORE IN SOME OF THE SUBSEQUENT SLIDES. WHEN WE LOOK AT THE HISTORICAL HOTEL OCCUPANCY TAX CONTRIBUTION, THIS IS A SLIDE THAT SHOWS FISCAL YEAR 2024 ON THE RIGHT. AND GOING BACK TO THE LEFT IS 2018. SO THIS IS 2018 TO 2024. OVER THAT TIME, OUR AVERAGE HOTEL OCCUPANCY TAX CONTRIBUTION TO SUPPORT CONVENTION CENTER OPERATIONS WAS AT AROUND $2.287 MILLION. AND YOU CAN SEE THERE OBVIOUSLY THE YEAR IN THE MIDDLE IS THE COVID YEAR. THAT HAD THE MOST IMPACT FROM THE PANDEMIC. AND SO IF YOU ACTUALLY IF YOU TOOK THAT OUT, THAT AVERAGE WOULD ACTUALLY GO UP A LITTLE BIT.BUT WE DID LEAVE IT IN THERE FOR AVERAGE PURPOSES. NOW, THE WACO CONVENTION CENTER IS ACTUALLY A PART OF THE CITY'S CONVENTION SERVICES FUND. SO I WANTED TO KIND OF STEP BACK. WE WERE LOOKING AT A PARTICULAR FOCUSED ASPECT, BUT WHEN WE STEP BACK AND LOOK AT CONVENTION SERVICES FUND. THIS IS THE FUND THAT ACCOUNTS NOT ONLY FOR THE WACO CONVENTION CENTER EXPENSES THAT YOU SAW IN THE PREVIOUS SEVERAL SLIDES, BUT THEN THIS ALSO INCLUDES OUR HOTEL OCCUPANCY TAX COLLECTIONS, AS WELL AS OUR OTHER EXPENSE OBJECT CODES IN THIS FUND, SUCH AS THINGS LIKE SALES AND MARKETING ADMINISTRATION. SO OUR BUDGET FOR FY 25, OUR TOTAL REVENUES WERE 9.6 $9,654,448. THAT INCLUDES THAT TRANSFERS FROM SURPLUS, WHICH WAS THE PLANNED USE OF FUND BALANCE. TOTAL EXPENSES WERE 9,781,422. SO WE WERE PLANNING ON UTILIZING $528,000 OF FUND BALANCE FOR THE BUDGET FOR FY 25, FOR THE CONVENTION SERVICES FUND. IN TOTAL, WHEN WE LOOK AT ACTUAL YEAR TO DATE AND AGAIN, THESE ARE UNAUDITED NUMBERS.
OUR OPERATING REVENUES, INCLUDING HOTEL OCCUPANCY TAXES, WERE $9,243,111. THAT'S THAT'S THE TOTAL OF THE OPERATING REVENUE FOR THE CONVENTION SERVICES FUND, INCLUDING THE WACO CONVENTION CENTER. TOTAL EXPENSES, HOWEVER, WERE $8,834,678. SO THAT'S ACTUAL POSITIVE VARIANCE OF SURPLUS OF 408,000. SO PLANNED ON A NEGATIVE VARIANCE OF 528 ENDED UP THE YEAR AND AN UNAUDITED POSITION OF 408,000 TO THE POSITIVE. SO THAT'S ABOUT A $900,000 SWING WHEN YOU STEP BACK IN TOTAL AND TAKE A LOOK AT THE CONVENTION SERVICES FUND, YOU CAN SEE IN THE GREEN ON THE RIGHT THOSE BALANCES THERE IN THE YEAR TO DATE PERCENTAGES.
THANK YOU. SO TO SUMMARIZE, WHEN WE LOOK AT COMPARABLE COMPARABLE CONVENTION CENTERS, THEY TYPICALLY REQUIRE ABOUT 1.5 TO $2 MILLION IN ANNUAL HOT SUPPORT. THAT IS A GOAL THAT WE WANT TO WORK TOWARDS. AWAY FROM THAT $2.2 MILLION AVERAGE. AND AN IMPORTANT NOTE, WE CONTINUE TO OPERATE WITHOUT ANY GENERAL FUND IMPACT. SO RELYING ON VISITOR PAID TAXES TO FUND OPERATIONS. FISCAL YEAR 25 PERFORMED AS EXPECTED FOR A TRANSITION YEAR. AND OVERALL, WE HAVE GOOD MOMENTUM HEADING INTO 26 WITH THAT SURPLUS THAT WE SAW LAST YEAR FOR THE OVERALL CONVENTION SERVICES FUND AND FINALLY THAT $409,000 IN CAPITAL IMPROVEMENTS WILL HELP SET THE FACILITY UP FOR SUCCESS, AS LEGENDS GLOBAL CONTINUES TO WORK ON FILLING THAT PIPELINE. AND SPEAKING OF FY 26, LEGENDS GLOBAL WILL CLOSELY MONITOR REVENUES TO EXPENSES AS WE GO THROUGH THE YEAR. THEY CAN ADJUST AS NEEDED TO MAKE SURE THAT WE HONOR THE BUDGETED AMOUNT OF SUPPORT THAT WE SET OUT, AND THEN THEY WILL EXPLORE SOME OF THOSE OTHER REVENUE AREAS, SUCH AS SPONSORSHIPS OR NAMING RIGHTS. AND WE WILL CONTINUE TO STRENGTHEN OUR COLLABORATION BETWEEN THE DMO, LEGENDS, GLOBAL WACO TYPEKIT AND OUR OUTSIDE PARTNERS SUCH AS OTHER VENUES AND OUR HOTELS, TO REALLY FOCUS ON BRINGING IN THOSE P1 AND P2 HOTEL OCCUPANCY TAX GENERATING EVENTS AND MAKE WACO A STRONG CONVENTION CITY
[01:20:02]
FLOWING FORWARD. SO WITH THAT, I THINK WE ARE READY FOR ANY OTHER QUESTIONS, ANY QUESTIONS OR COMMENTS? YES, I MISSED THIS, SORRY, I WAS DOING SOME MATH. WHAT ELSE GOES INTO THE CONVENTION SERVICES FUND? YES SIR. SO THAT'S GOING TO BE SOME OF OUR DIVISIONS LIKE SALES AND MARKETING, ADMINISTRATION. AND I BELIEVE THE WELCOME CENTER IS IN THERE AS WELL. AND WE ALSO PAY HOTEL REBATES OUT OF THERE AS WELL. WHEN WE HAVE A AN INCENTIVE AGREEMENT WITH THE HOTEL, WE WILL ALSO PAY REBATES OUT OF THAT TO, TO REIMBURSE THOSE HOTELS ACCORDING TO THOSE AGREEMENTS. I'VE GOT ONE MORE QUESTION. SORRY, I'M JUST TRYING TO. YES, SIR. ON THE.EVENT ACTIVITY. YOU GUYS WERE HELPFUL. AND YOU SHOWED WHAT? WHAT'S ON THE BOOKS GOING FORWARD FOR 2627? AND DO WE HAVE GOALS FOR THOSE NUMBERS FOR FUTURE YEARS? WE DO. I DON'T KNOW THEM OFF THE TOP OF MY HEAD. HANNAH. DO YOU KNOW THEM? WE DO HAVE WE DO HAVE GOALS IN OUR KPIS. WHEN WE PUT THE BUDGET TOGETHER AND WE CAN ADD THOSE TO THE YEAH, THAT'D BE HELPFUL TO KNOW WHAT. SO WE CAN TRACK AS TO WHERE WE'RE GOING. ABSOLUTELY. THEY MANAGE OR THEY SET THE GOALS FOR EVENTS AND FOR ROOM NIGHTS. HOTEL ROOM NIGHTS. THANKS. ANY OTHER QUESTIONS? YEAH. I'LL ECHO COUNCIL MEMBER CHASE JUST A LITTLE BIT HERE. YEAH.
BECAUSE WE KEEP TALKING ABOUT TWO AND THREE YEARS IS LOOKING GOOD AND ALL THAT. CAN WE SEE THAT I MEAN IS IT TRACKED. IT WOULD BE GREAT TO SEE BECAUSE THE FIRST YEAR DOESN'T LOOK THAT GREAT I GET IT. BUT WE'RE BANKING ON THE TWO AND THREE YEARS. SO LET'S IF IT IS LOOKING GOOD, LET'S SEE IT AND TALK ABOUT IT. AND THEN CONTEXT IS KEY. WHAT WAS WHAT WAS THE THREE YEAR. BECAUSE IN MY BUSINESS WE BUY PRODUCT AND WE HAVE A PIPELINE OF WHAT WE'RE LOOKING AT AND TRYING TO BUY. CAN WE SEE WHAT THAT PIPELINE KIND OF WAS IN 22, 23, 24 AND WHAT IT IS NOW? AND IS THAT THREE YEARS? WAS IT 2022 WITH THREE YEAR VISION BETTER OR WORSE THAN IT IS NOW? BECAUSE I THINK THAT'S WHAT WE'RE REALLY TRYING TO MEASURE LEGENDS AGAINST. BECAUSE ALSO, IF YOU INCLUDE LIKE AND DIFFERENT MANAGEMENT STYLE, DIFFERENT MODELS, YOU KNOW, WE AS WE WORKED AS THE WACO CONVENTION CENTER AND OUR INTERNAL SALES STAFF WORKING YOU KNOW, AS HARD, YOU KNOW. BUT THE ONE THING THAT LEGENDS HAS IS A LOT MORE ACCESS. AND I THINK THAT THAT'S ONE OF THOSE THINGS THAT YOU MAY WANT TO INCLUDE IN COMPARING YEAR OVER YEAR ESPECIALLY. I WOULD TAKE, YOU KNOW. OUR FRIENDS AT SYMPHONY SAYS WE DON'T HAVE TO DO ANYTHING PAST 2020 ANYMORE. SO 21 OR 22 FORWARD AS TO WHAT THOSE GOALS WERE AND THE TYPE OF BOOKINGS THAT WE GOT, THE NUMBER OF P ONES, THE NUMBER OF P TWO AND WHAT WHAT WE WERE CHASING RATHER THAN WHAT WE WERE IN LINE FOR. I THINK THAT'LL BE I MEAN, BECAUSE I'M, YOU KNOW, I SIT IN THERE SO I'M, I'M A LITTLE BIT MORE FLUENT AND UNDERSTANDING OF WHY THIS DOESN'T MAKE SENSE TO A LAYPERSON. BUT, YOU KNOW, IT MAY BE HELPFUL TO SEE WHAT WE'RE CHASING AS OPPOSED TO WHAT WHAT WE HAD OR WHAT WE WERE CHASING AND WHAT THEY HAVE ACCESS TO. BECAUSE I THINK THAT'S THE TREMENDOUS AMOUNT OF DIFFERENCE IN WHAT WE'RE TALKING ABOUT FROM THIS YEAR TO THE NEXT. THE OTHER PIECE IS THE LEVEL OF STAFFING, BECAUSE I THINK THAT WITH LEGEND COMING ON, THEY HAVE THE ABILITY TO DO FULL SERVICE, WHICH WE WEREN'T ABLE TO DO INTERNALLY FOR SO MANY YEARS. AND THAT CHANGED THE LEVEL OF CONVENTIONS AND CONFERENCES THAT WE COULD BOOK JUST BECAUSE WE DIDN'T HAVE THE CAPACITY TO DO FULL SERVICE, TURN ON A DIME, YOU KNOW? SO I THINK THOSE ARE THE THINGS THAT THAT WE WANT TO ALSO CONSIDER. BUT THEY NEED TO SEE THAT. SO WHEN WE I GUESS IT'LL JUST BE SOME INTERNAL REPORTS OR INFORMAL REPORTS OR EMAILS OR WHATEVER SENT OUT. BUT IN THE BREAKDOWN IN THAT WAY, MAKE SURE THAT YOU'RE SHOWING WHAT WAS ACCOMPLISHED, BECAUSE, YOU KNOW, WE'RE NOT KNOCKING WHAT WHAT THE CONVENTION CENTER STAFF DID PRE LEGEND, YOU KNOW.
BUT WE ALSO WANT TO HIGHLIGHT THE POSSIBILITIES THAT WE HAVE MOVING FORWARD. AND WITH THE WORK THAT LEGEND HAS AND THE RESOURCES THAT LEGENDS HAVE. AND I MEAN JUST I THINK THIS WEEK WE WERE DOING 1500 MEALS IN THIS BUILDING THIS WEEK, BUT FOR, YOU KNOW, CALLING IN AN AUDIBLE OF A CHEF FROM OKLAHOMA, WE WOULDN'T HAVE BEEN ABLE TO DO THAT AND ACCOMPLISH THOSE THINGS. BUT WE CAN NOW BECAUSE WE HAVE THOSE RESOURCES AND ACCESS. SO I THINK THAT WE NEED TO LOOK AT THAT IN A BIGGER I MEAN, AND I KNOW IT'S HARD TO PRESENT ALL OF THAT INFORMATION IN THIS SMALL BLOCK OF TIME, BUT I THINK IT WILL BE HELPFUL FOR MY COLLEAGUES TO UNDERSTAND AT LEAST THE NARRATIVE OF THE HOWS AND WHYS. COOL. YEAH, ABSOLUTELY. GREAT PRESENTATION
[01:25:07]
HANNAH. COLLIN. LISA. APPRECIATE IT. CITY MANAGER FORD WHAT DO WE WANT TO DO? WE'RE TAKE A BREAK AND THAT'S IT. THAT'S IT OKAY. WE'RE GOING TO THE NEXT ITEM. COUNCIL COMMENTS ON ITEMS OF COMMUNITY INTEREST AND REQUEST FOR FUTURE AGENDA ITEMS. DO WE HAVE ANY[EXECUTIVE SESSION]
FUTURE AGENDA ITEMS? GUYS WE HAVE NONE. WE WILL NOW RECESS THE WORK SESSION AND RECONVENE THE REGULAR SESSION FOR EXECUTIVE SESSION, AS READ INTO THE RECORD BY THE CITY SECRETARY AT 4:29 P.M. NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL WILL GO INTO EXECUTIVE SESSION IN ACCORDANCE WITH THE FOLLOWING PROVISIONS. ATTORNEY BRIEFING TEXAS GOVERNMENT CODE, SECTION 551.071 AND FRANKIE DATA CENTER MEDIA REPORTS. REAL PROPERTY TEXAS OPEN MEETINGS ACT SECTION, GOVERNMENT CODE SECTION 541.072. IN ECONOMIC DEVELOPMENT TEXAS OPEN MEETINGS ACT, ACT GOVERNMENT CODE SECTION 551.087. DOWNTOWN DEVELOPMENT PROJECT BEING THE MIXED USE DEVELOPMENT ON CITY OWNED AND ADJACENT PROPERTIES NEAR CITY HALL. REAL PROPERTY TEXAS OPEN MEETINGS ACT SECTION. SECTION 551.072 ECONOMIC DEVELOPMENT TEXAS OPEN MEETINGS ACT, SECTION 551.087 ATTORNEY BRIEFING, TEXAS TEXAS GOVERNMENT CODE, SECTION 551.071 AND PERSONNEL TEXAS GOVERNMENT CODE, SECTION 551.074. DISCUSSION OF CITY MANAGER APPOINTMENT PROCESS AND DISCUSSION. DISCUSS POTENTIAL CANDIDATE FOR THE POSITION. WE ARE NOW* This transcript was compiled from uncorrected Closed Captioning.