[00:00:03]
          OKAY. WELL, THERE WE GO. 
          [Call to Order and Roll Call]
WELCOME TO THE IDAHO FALLS COUNCIL WORK SESSION MONDAY, OCTOBER FIFTH, AND IT'S OUR CLERK WILL PLEASE DO A ROLL CALL TO ESTABLISH THE QUORUM AND JUST NOTE THAT COUNCIL MEMBER RADFORD IS DOING A TOUR OF THE CLEANUP PROJECT THAT I KNOW AND ANTICIPATES BEING A LITTLE LATE TODAY. GOOD AFTERNOON. COUNCIL PRESIDENT FRANCIS. HERE. COUNCILOR ZIEL-DINGMAN. HERE. COUNCILOR FREEMAN. HERE. COUNCILOR LARSEN. HERE. COUNCILOR LEE. 
          HERE. THANK YOU, MAYOR, YOU HAVE A QUORUM. GREAT. WE ARE GOING TO BEGIN TODAY 
          [Office of the Mayor]
WITH STARTING FROM MY LEFT COUNCIL MEMBER FRANCIS TALKING ABOUT SOME OF THE THINGS HE WANTS TO REPORT ON, AS WELL AS ANY CONCERNS OR ISSUES THAT ARE COMING UP? BUT I HAVE TWO THINGS. I WANT EVERYBODY TO KNOW WE ARE STILL WORKING ON THE ALCOHOL ORDINANCE REVISION. 
          IT'S JUST, IT'S SLOW, AND WE DECIDED NOT TO SET A REAL DEADLINE BUT MANY OF OUR LIAISON MEETINGS WITH THE CITY ATTORNEY ARE RELATED TO ALCOHOL. IT EATS UP OUR HOUR AND A HALF PRETTY FAST. SO, DON'T GIVE UP ON US. WE'RE STILL WORKING ON IT. IT WILL BE MUCH MORE CONCISE WHEN WE'RE FINISHED. SO, THAT'S ONE. 
          TWO, IN TERMS OF POLICE THEY ARE TAKING STEPS USING CITIZEN WATCH TO DEAL WITH THAT PARKING IN THE SIDEWALKS. IT'S BEEN BROUGHT FORWARD A FEW TIMES FOR PEOPLE THAT ARE PARKING ACROSS THE SIDEWALK TO MAKE IT INTO THE HALL FOR PEOPLE. SO, THAT, THAT IS IN THE WORKS. 
          AND CITIZENS WATCH CAN GIVE CITATIONS FOR, FOR CASES LIKE THAT. SO, THOSE ARE MY MAIN THINGS, BECAUSE WE'LL TALK ABOUT THE PROCEDURE FOR PDQ, THE MARYLAND PLANE. OKAY. I HAVE JUST ONE TO BRING UP FROM, AGAIN, MEETING WITH THE POLICE. THEY ARE WORKING WITH LEGAL TO DRAFT A HALO ORDINANCE FOR OUR CONSIDERATION AND WANT TO BRING THAT FORTH TO A WORK SESSION HERE AS SOON AS I GUESS IT'S READY TO BRING FORTH TO US. A WHAT ORDINANCE? YEAH, I WOULD EXPLAIN WHAT A HALO. A HALO ORDINANCE. SO, AND JIM, YOU CAN JUMP IN ON ANY OTHER COLOR THAT YOU'D LIKE TO ADD, BUT THE ESSENCE OF IT IS THAT WHEN POLICE OFFICERS ARE IN THE LINE OF DUTY AND, AND DOING SOMETHING, MAYBE THEY'RE PERFORMING AN ARREST WHAT'S BEEN HAPPENING AROUND THE COUNTRY, YOU SEE PEOPLE GET THEIR CELL PHONES OUT, THEY WANT TO GET RIGHT IN AS CLOSE UP TO FILM IT, AND SO, THEY'RE IMPEDING OFFICERS' ABILITIES, AND THEN SOMETIMES CREATING MORE CONFLICT OR RAISING THE TENSION AND DIFFERENT THINGS LIKE THAT. 
          SO, YOU'VE SEEN COMMUNITIES ESTABLISH ESSENTIALLY A, A DISTANCE IN WHICH THEY HAVE TO REFRAIN. AND SO, IF YOU'RE GOING TO FILM, WHICH THEY HAVE THE RIGHT TO DO WITH YOUR CAMERA, YOU HAVE TO DO SO, FROM A CERTAIN DISTANCE. AND SO, THERE'LL BE, THERE'LL BE A SUGGESTED DISTANCE THAT THAT COMES FORTH IN, IN AN ORDINANCE FOR OUR CONSIDERATION. DOES THAT MAKE SENSE? JIM, WOULD YOU ADD ANYTHING TO THAT? YEAH, JUST CHIEF IS KIND OF WONDERING IF COUNCIL HAS THOUGHTS ABOUT FIFTEEN FEET OR TWENTY-FIVE FEET, WHICH SEEM TO BE THE TWO NUMBERS THAT OTHER CITIES HAVE BEEN USING. AND THE IDEA IS SOMEBODY GETS IN THE FACE OF THE OFFICER, THE OFFICER SAYS, STEP BACK FIFTEEN FEET OR WHATEVER, OR TWENTY-FIVE FEET. 
          I JUST THINK A LOT CAN HAPPEN IN FIFTEEN FEET. TO ME, TWENTY-FIVE JUST SEEMS MUCH MORE SAFE, WHICH IS REALLY WHAT THE WHOLE PRINCIPLE WOULD BE. 
          DID THE CHIEF HAVE ANY COMMENT ON EITHER ONE OF THOSE? TWENTY-FIVE, HE WAS EIGHT TWENTY-FIVE, BUT HE IS WILLING TO DO WHICHEVER COUNSELOR. THE CELL PHONES ARE GOOD ENOUGH IF YOU WANT TO HAVE ZOOM, GO AHEAD. I HAD A COUPLE OF INSTANCES WITH FIRE WHERE WE HAD TO ACTUALLY HAVE SOMEBODY ON OUR CREW PHYSICALLY REMOVE SOMEONE YOU KNOW, BACK, MOVE THEM BACK BECAUSE THEY WERE IMPEDING OUR ABILITY TO DO OUR JOB, TO DO THE JOB, YEAH. THAT'S GOOD. WE, WE SHOULD ASK THE LEGAL TO LOOK INTO FIRE AND POLICE HALO RULES, BECAUSE IT WOULD BE JUST AS IMPORTANT FOR FIRE. YEAH, THAT'S A GOOD COMMENT. WOULD WE INCLUDE EMS IN OUR? THAT'S WHAT IT WAS, YEAH. THAT WAS THE INCIDENT WE WERE ON WAS THAT I CAN THINK OF MORE SPECIFICALLY, BUT I KNOW THERE'S MORE THAN ONE. 
          AND WE HAD ONE AT THE MALL ONE TIME. ONE OF OUR FIREFIGHTERS I HAD TO ASK. CAN TO PLEASE REMOVE THIS PERSON. 
          SO, THAT WILL BE COMING FORTH AT THIS TWENTY-FIVE, 
          [00:05:01]
ANYONE HAVE ANY ISSUES FOR TWENTY-FIVE FEET IF WE GO BACK TO THE CHIEF AND SAY THAT SEEMED REASONABLE? OKAY. THANK YOU. NOTHING, I JUST COUNCILMEMBER ZIEL-DINGMAN BROUGHT THIS UP, BUT THE FOLKS ARE DOING THEIR BEST TO GET STREET STRIPED AS QUICKLY AS THEY CAN. SHE'S BEEN TAKING SOME CALLS ON THAT. OUR BRAND-NEW ROADS. 
          THAT'S THE PART I'D LIKE TO COME BACK TO. YEAH. 
          YOU UNDERSTAND THE PROBLEM HERE IS YOU HAVE A BRAND-NEW ROAD. 
          THEY MAY HAVE BEEN FOGGED RECENTLY AND THIS IS STILL REALLY PRETTY. THAT'S ALL I HAVE. I THINK WE'VE BEEN HAVING A LOT OF CONVERSATIONS ABOUT BICYCLE STUFF. WE HAD STUFF TODAY, WE HAD IT LAST WEEK. MAYOR AND I MET WITH A BUNCH OF PEOPLE AT SNAKE RIVER TRAIL ALLIANCE, SNAKE RIVER MOUNTAIN BIKE CLUB WE'RE TALKING ABOUT NCA MOUNTAIN BIKING FOR A HIGH SCHOOL ELECTIVE KIND OF THING. SO, AND ABOUT DEVELOPING THE GEM LAKE BIKE TRAILS DOWN THERE. 
          SO, THOSE, THOSE ARE ALL IN MOTION. WE ALSO HAD, I JUST CAME FROM THE PARKS AND RECREATION COMMISSION. THEY, THEY HAD A LOT OF INTEREST IN E-BIKE RULES AND, AND SCOOTER RULES AND STUFF ON THE GREENBELT, BUT ALSO IN OTHER PLACES IN TOWN ABOUT JUST TO KNOW THAT THEY, AND, AND WE WERE ABLE TO ASSURE THEM THAT WE ARE LOOKING AT, AT COORDINATES AND SO, FORTH ABOUT, BECAUSE IT BECAME THE BIGGER AND BIGGER PROBLEM WITH THE SPEEDS OF THESE, OF THESE SCOOTERS AND STUFF, AND THE, AND THE NUMBER OF THEM. SO, WE'RE TALKING ABOUT THOSE, AND I JUST WANT THE PUBLIC TO KNOW THAT, I GUESS. IT'S IN QUESTION ON THAT. DO YOU THINK THAT'S SOMETHING THAT WOULD BE APPROPRIATE TO ASK THE COMMISSION TO GIVE US SUGGESTIONS ON APPROPRIATE SPEEDS? YES, AND THEY, I THINK THAT THAT'S, THEY'RE LEANING IN THAT DIRECTION. YEAH. 
          THAT'D BE HELPFUL. AND, AND THE SIZE OF THE MOTORS THAT CAN BE USED, CAN USE OUR PADS AND STUFF LIKE THAT. THEY'RE GOING TO, THEY'RE LOOKING INTO WHAT THEY'RE DOING IN TREASURE VALLEY AND SO, FORTH. 
          ON THE, FROM IDAHO FALLS POWER, THE BULB IS BEING PUT BACK TOGETHER. WE'RE EXPECTING IT TO BE OPERATIONAL BY, IN NOVEMBER IN A MONTH OR SO. 
          THERE WAS A VIDEO POSTED ABOUT THEIR LOWERING THE BLADES BACK IN THE HOLE AND PUTTING THE BULB BACK TOGETHER. SO, I THINK THAT'LL TAKE A WHILE. THEY'LL DO SOME TESTING ON IT FIRST. 
          BUT THAT'S, THAT'S ABOUT IT. 
          THAT'S ALL I GOT, BUT THAT'S STILL AHEAD OF SCHEDULE, RIGHT? BECAUSE WE HAVE TO GET TO SUMMER, YEAH. 
          OKAY. SOUNDS THANK YOU, MARY. I DO HAVE A FEW THINGS ON MY LIST. THE FIRST ONE IS THAT WE HAVE CANCELED THE UTILITY BOARD MEETING FOR OCTOBER. WE HANDLED A LOT OF OUR UTILITIES WORK DURING OUR WORK SESSION LAST TIME, AND WHEN I MET WITH THE DIRECTORS, WE DID NEED TO BE MAKING UP ITEMS TO HAVE A MEETING, SO, THAT UTILITY BOARD MEETING HAS BEEN CANCELED FOR THIS WEEK. ONE THING, THOUGH, PLANNING COMMISSION DOES HAVE ON THEIR AGENDA, THEY WILL BE DISCUSSING TVS JUST SOME OF THE THINGS THAT THEY HAD HEARD COME FROM COUNCIL, SOME OF THEIR OWN CONCERNS, THAT WILL BE IN THEIR MEETING THIS MONTH. 
          AND THEN THE WAY THAT WE KIND OF LAID THIS OUT TO GO FORWARD IS SOMETIME AFTER OCTOBER NINETEENTH, BECAUSE OCTOBER NINETEENTH WE WILL HAVE THE STARTER HOME SUBDIVISION, IT'S LISTED AS THE NINETEENTH BETWEEN THE NINETEENTH AND NOVEMBER NINTH. NOVEMBER NINTH WILL HAVE BETWEEN THE NINETEENTH AND THE NINTH, COUNCIL WILL BE ASKED TO GO VISIT SOME OF THESE PUDS SEPARATELY AND BE ABLE TO MAKE NOTICE OF, ARE THERE CROSS PARKS ON THE PRIVATE STREETS? ARE WE SEEING CONGESTION? WHAT ARE, LIKE, WHAT IS IT ABOUT A PUD? WHAT IS IT THAT WE LIKE? WHAT IS IT THAT WE DON'T LIKE? THERE'LL BE OPPORTUNITY FOR KIND OF SOME SURVEY QUESTIONS AS WELL AS SOME FREE, FREE WRITTEN RESPONSES. AND THEN NOVEMBER NINTH, WE WILL HAVE THAT DISCUSSION, AND THERE WILL BE SOME CODE REVISION SOLUTIONS OF SOME OF THE THINGS WE'VE ALREADY BEEN TALKING ABOUT, SOME OF THAT LOW-HANGING FRUIT THAT WE CAN DISCUSSED IN THAT MEETING, THE IDEA IS THAT WE WOULD ACTUALLY GET SOME OF THESE ON THE BOOKS BEFORE THE CHRISTMAS BREAK. WE WOULD, WE HAVE A TIMELINE THAT IS SET TO GET MOVING FORWARD. THERE'S A CHANCE THEY DON'T HIT US BEFORE JANUARY, JUST BECAUSE OF THE PLANNING COMMISSION PIECE. WE HAVE TO MAKE SURE IT'S NOTICED AND THEY HIT TIME, BUT WE'RE WORKING THROUGH THAT. I JUST WANT YOU 
          [00:10:02]
TO KNOW THAT IT'S NOT HANGING OUT THERE INDEFINITELY. IT IS MOVING THROUGH. AND THEN THIS THURSDAY, WE DO HAVE A PD COMING FORWARD. IT IS OVER BY FREEMAN PARK. JUST AS A REMINDER, WE ARE ACTUALLY GOING TO CHANGE THE PROCESS, AS WE HAVE TALKED ABOUT. WE ARE GOING TO OPEN THE HEARING, THE DEVELOPER WILL BE FIRST, THE STAFF REPORT, AND PUBLIC COMMENT, BUT DURING ANY OF THOSE STAGES, COUNCIL CAN ASK QUESTIONS. 
          WE'RE NOT GOING TO CLOSE THE HEARING AND THEN DELIBERATE. 
          IT'S ALL PART OF THE HEARING TO ASK QUESTIONS. ASK QUESTIONS OF THE DEVELOPER, STAFF, OR THE PUBLIC. COUNCIL WILL DELIBERATE DURING THE OPEN PART OF THE HEARING, SO, WE DON'T HAVE TO KEEP CLOSING AND OPENING IT. 
          WE'LL BE ABLE TO HAVE THAT OPEN DELIBERATION, AND THEN IF MORE QUESTIONS COME UP, WE CAN JUST DIRECT THEM TO THE DEVELOPER OR TO STAFF. 
          AND THEN, JUST AS A REMINDER, IF IT GETS TO THE POINT WHERE THERE SEEMS TO BE AN IMPASSE THEN WE CAN TABLE THE DECISION, AS OPPOSED TO JUST AN OUTRIGHT REJECTION OF IT. YOU MIGHT WANT TO JUST REJECT IT, I'M NOT SURE AND HAVE A REASON STATEMENT OF RELEVANT CRITERIA IN THE WORK SESSION. I WANTED TO MAKE SURE THAT THAT IS ONE THING THAT WE CAN DO. WE DON'T HAVE TO, IF THERE IS A DENIAL, THE DENIAL CAN COME BASED ON THE REASON STATEMENT OF RELEVANT CRITERIA TO BE DEVELOPED IN OUR NEXT WORK SESSION. SO, WE CAN I JUST WANTED TO KNOW WE CAN TABLE THE DECISION AND TELL CVS TO GO BACK AND WORK WITH THE DEVELOPER ON THAT, WHICH I THINK IS A MUCH BETTER SOLUTION THAN TO HAVE TO MAKE IT GO BACK THROUGH THE WHOLE PROCESS AGAIN. OTHER, OTHER THAN THAT, WE DO HAVE A EXECUTIVE SESSION AT THE END OF THIS MEETING, AND WE WILL BE COMING BACK IN OPEN MEETING TO VOTE ON IT. SO, JUST AS A REMINDER TOWARD THE END OF THE MEETING, A LITTLE BIT ABOUT WHAT THIS WILL LOOK LIKE. 
          [Airport]
SO, OUR NEXT ITEM IS ACTUALLY COMING TO US TODAY FROM THE AIRPORT. AND I DO WANT TO THANK LINDA. WE NOW HAVE OUR WORK SESSION AGENDA, OUR, DID LIST ALL OUR, SO, THERE WILL BE A WAY FOR PEOPLE TO, YOU KNOW, SUBMIT THEIR REPORTS EARLIER. 
          IT CALCULATES THEM, IF NOT, IT'LL AT LEAST STILL BE IN THE SAME KIND OF FORMAT. 
          AND SHE DID ALL OF THAT WORK. 
          SO, THANK YOU TO OUR CLERK. 
          THANK YOU, MAYOR. YES, PLEASE. 
          ALL RIGHT. THANK YOU, MAYOR AND COUNCIL. TODAY YOU ARE RECEIVING A REPORT ON OUR AIR SERVICE MARKET, AND YOU WILL SEE TO MY RIGHT, KIND OF A GUEST, THIS IS JACK PENNING WITH VOLAIRE AVIATION. HE IS OUR AIR SERVICE CONSULTANT. AND WITH THAT, I'M TURNING THE TIME OVER TO HIM. WELL, THANK YOU, IAN, AND THANK YOU ALL. I, I THINK SOME OF YOU I'VE SEEN BEFORE AND, AND PRESENTED TO BEFORE. IT'S NICE TO BE BACK, AND I'M VERY HAPPY TO BE HERE BECAUSE OUR AIR SERVICE IS DOING SO, WELL RELATIVE TO OTHER REGIONAL MARKETS, NOT ONLY IN THE NORTHWEST OF THE COUNTRY, BUT THROUGHOUT THE COUNTRY, AND SO, WE'VE GOT A GREAT STORY TO TELL. AND I'LL JUST JUMP RIGHT IN. SO, WHO I AM, JACK PENNING, I'VE BEEN THE CONSULTANT OF RECORD FOR THIS AIRPORT NOW FOR 21 YEARS. MY VERY FIRST PROJECT IN MY ENTIRE CAREER WAS TO RECRUIT SERVICE FROM IDAHO FALLS TO DENVER ON UNITED, AND THAT WAS BACK IN 2004. I STARTED THAT PROJECT THE END OF 2004, SO, ALMOST 22 YEARS AGO. I LIVE IN TUCSON NOW. 
          I WAS IN PORTLAND FOR 25 YEARS. SO, YOU KNOW, NOT FAR AWAY. I ACTUALLY WAS IN, CAME FROM PORTLAND TODAY ON THE NONSTOP. RECRUITED ANN AND I TOGETHER. SO, I'VE HELPED MYSELF QUITE A BIT TOO HERE. 
          REALLY PROUD OF OUR TEAM AND WHAT WE'VE BEEN ABLE TO DO. 
          SO, WHAT I WANT TO GO THROUGH IS OUR NEW MARKET RETENTION REPORT. WE UNDERSTAND, YOU KNOW, HOW MANY PEOPLE FROM OUR IMMEDIATE AREA ARE USING OUR AIRPORT INSTEAD OF DRIVING TO OTHER AIRPORTS. REALLY GREAT TRENDS TO TALK ABOUT THERE. 
          BUT I DO WANT TO TALK ABOUT SOME OF THE HEADWINDS IN THE INDUSTRY THAT WE NEED TO BE AWARE OF PARTICULARLY FUEL AND THE PRICE OF FUEL AND WHAT THAT'S GOING TO DO TO THE PROFITABILITY OF REGIONAL SERVICE. AND THEN LOOKING AHEAD, WE, WE DO HAVE A LOT OF OPPORTUNITY BECAUSE OF ASSETS THAT WE HAVE, LIKE OUR SMALL COMMUNITY AIR SERVICE DEVELOPMENT GRANT WHAT WE THINK SERVICE IS GOING TO LOOK LIKE IN THE FUTURE HERE. SO, WITH THAT IN MIND BEGINNING WITH MARKET RETENTION, WE, WE KEEP SETTING NEW RECORDS. I, I LIKE TO LOOK AT OUR PASSENGERS IN PASSENGERS PER DAY 
          [00:15:01]
IN EACH DIRECTION, BECAUSE IT GIVES ME A BETTER IDEA THAN A BIG NUMBER. BUT WE IN 2025 SERVED 942 PASSENGERS A DAY ON AVERAGE IN EACH DIRECTION, SO, THAT'S IN AND OUT, SO, MULTIPLY BY TWO FOR THE TOTAL NUMBER OF PEOPLE IN THE TERMINAL. THAT'S UP, YOU KNOW, FROM 2019 BEFORE THE PANDEMIC BASICALLY DOUBLED. 
          THIS MARKET WAS ONE OF THOSE THAT DURING THE PANDEMIC ABSOLUTELY TOOK OFF BECAUSE PEOPLE WANTED TO GO TO, STILL WANTED TO VACATION, WANTED TO BE IN PLACES WHERE THEY COULD BE OUTSIDE. AND WE WERE ABLE TO LEVERAGE THAT FOR A LOT OF NEW SERVICE. AND THAT SERVICE HAS DONE EXCEPTIONALLY WELL BECAUSE WE UNDERSTOOD THE DEMAND THAT WASN'T BEING SERVED BY THE, THE AIRLINES AND THE, AND THE ROUTES THAT WERE HERE. 
          SO, OUR MARKET IS ONE OF THE FASTEST GROWING IN THE PACIFIC NORTHWEST. THE TWO FASTEST GROWING IN OUR SIZE ARE IDAHO FALLS AND TRI-CITIES, WASHINGTON, BOTH OF WHICH ALSO HAPPEN TO HAVE NATIONAL LABS. SO, THAT CERTAINLY HELPS BUILD DEMAND FOR OUR SERVICE. SO, GO BACK TO 2001. THIS IS WHAT SERVICE AT IDAHO FALLS LOOKED LIKE. WE HAD FLIGHTS ON HORIZON AIR TO BOISE, AND WE HAD SERVICE TO SALT LAKE, AND THEY WERE ALL TURBOPROP AIRCRAFT. SO, THAT'S JUST GOING BACK TWENTY-FIVE YEARS. TWO ROUTES THEN. 
          OF COURSE, I TALKED ABOUT UNITED RECRUITMENT. I WAS ALSO ON THE TEAM THAT RECRUITED ALLEGIANT TO THE MARKET BACK IN 2005. SO, WE GREW WITH THAT SERVICE. THEN WE ADDED MORE ALLEGIANT SERVICE BY 2010. IT'S BEEN A LONG RAMP TO GETTING TO WHERE WE ARE TODAY. 
          ALASKA, OF COURSE, LEFT THE MARKET, WHICH IS WHY I PUT THE LOGO OVER THERE ON THE RIGHT WHEN THEY CLOSED THE BOISE HUB, AND WE LOST THEM. SO, WE HAD A BIG ROAD AHEAD OF US TO GET ALASKA BACK TO IDAHO FALLS, AND THAT TOOK A LOT OF WORK, AND IT TOOK AN INVESTMENT FROM THE CITY AS WELL, BUT IT'S BEEN VERY, VERY SUCCESSFUL. SO, BY 2020, WE WERE ABLE TO RECRUIT ALASKA BACK WITH NON-STOPS TO SEATTLE ALLEGIANT, SOFI'S PORTLAND AND THAT'S WHERE OUR SERVICE WAS. 
          BUT THEN WE WERE ABLE TO GET AMERICAN INTO THE MARKET IN 2021 AS THE PEAK OF THE PANDEMIC HAPPENED. 
          ACTUALLY, IT WAS A TIME WHEN AIRCRAFT WERE REALLOCATING ASSETS, AND THOSE ASSETS BEING CRUISE AND AIRCRAFT, AND WE WERE IN A GREAT POSITION BECAUSE OF ALL THE GROUNDWORK WE HAD DONE AND MEETING WITH THESE CARRIERS OVER MANY, MANY YEARS, SO, THAT THEY UNDERSTOOD THAT WE WERE A GATEWAY TO YELLOWSTONE, GATEWAY TO GRAND TETON, THAT WE HAD SO, MUCH IN THIS AREA FOR THESE CARRIERS TO BRING PEOPLE TO WHEN PEOPLE WANTED TO BE DISTANT. AND THAT SERVICE HAS DONE EXCEPTIONALLY WELL. 
          SO, THAT BRINGS US TO 2025. 
          AMERICAN STARTED SERVICE TO CHICAGO O'HARE, AND THEN WHERE WE ARE TODAY. I WILL NOTE OAKLAND, OAKLAND HAS BEEN SUSPENDED BY ALLEGIANT THROUGH NO FAULT OF OUR OWN. 
          THEY CLOSED ALL SERVICE, THEY, THEY CLOSED OAKLAND AS A HUB, AS AN OPERATION. WE WERE THE NUMBER ONE PERFORMING MARKET TO OAKLAND, SO, WE WERE JUST BROUGHT DOWN BY OTHER MARKETS THAT COULDN'T SUPPORT THE SERVICE. 
          BUT THAT DOES LEAVE A GAP IN OUR SERVICE, AND WE'LL TALK ABOUT THAT MORE IN A BIT, BUT NOW WE HAVE TWO AIRLINES FLYING TO CHICAGO, WHICH IS JUST BEYOND WHAT WE REALLY THOUGHT POSSIBLE IF YOU GO BACK TWENTY YEARS. ALASKA FLYING PORTLAND DAILY, SEATTLE IS TWICE DAILY, AND THEN WE'VE GOT SERVICE TO THE HUBS IN THE MIDDLE OF THE COUNTRY TOO. SO, WE ARE COVERED IN ALL DIRECTIONS. 
          THAT'S TAKEN A CONCERTED EFFORT, NOT ONLY FROM THE AIRPORT, BUT FROM THE COMMUNITY, FROM INVESTMENTS FROM THE FEDERAL DEPARTMENT OF TRANSPORTATION TO MAKE THIS POSSIBLE. 
          FROM MY PERSPECTIVE, THIS IS EXACTLY WHAT WE WANT OUR WORK AT BLAIR TO LOOK LIKE IN OUR MARKETS. THIS IS THE MODEL MARKET. FROM IAN'S PERSPECTIVE, IT'S FUN TRYING TO MAKE THE AIRPORT INFRASTRUCTURE KEEP UP BUT HE'S DONE A GREAT JOB. 
          SO, WE'RE IN A REALLY STRONG POSITION RELATIVE TO PEERS. SO, YOU GO BACK TO 2016. SO, JUST GOING BACK TEN YEARS, IN OUR RETENTION, SO, THAT THESE ARE PASSENGERS WHO ARE TRAVELING TO OR FROM THE IMMEDIATE IDAHO FALLS AREA. WAS JUST FORTY-TWO PERCENT. SO, OF ALL THE PASSENGERS JUST COMING TO AND FROM IDAHO FALLS, THE MAJORITY WERE DRIVING TO OTHER AIRPORTS, AND THAT BEING SALT LAKE CITY, THE VAST MAJORITY SALT LAKE CITY. SO, WE KNEW WE HAD ROOM FOR GROWTH, AND THIS IS THE DATA THAT REALLY HELPED CONVINCE THE AIRLINES TO GROW HERE. IT'S THE PASSENGERS THAT THEY, THEY AREN'T ACCESSING BECAUSE THEY DON'T HAVE ENOUGH SEATS. SO, BY 2019, AS WE GREW OUR SERVICE, OUR RETENTION WAS UP TO FIFTY-NINE PERCENT. SO, WE WERE STILL LOSING ABOUT FORTY PERCENT, BUT MUCH BETTER. 
          DURING THE PANDEMIC, OUR RETENTION DROPPED SLIGHTLY. 
          AS OUR SERVICE GREW, WHICH MAY SEEM COUNTERINTUITIVE, BUT THE MARKET GREW SO, MUCH BECAUSE OF AIR DEMAND INTO 
          [00:20:02]
THE NATIONAL PARKS PRIMARILY. A LITTLE BIT BECAUSE OF THE GROWTH AT INL, BUT SO, MUCH WAS NEW PASSENGERS OR WERE NEW PASSENGERS WHO WERE TRAVELING TO YELLOWSTONE FROM PLACES THEY COULDN'T DRIVE. 
          THE FLY TRAFFIC TO THE NATIONAL PARKS GREW CONSIDERABLY, SO, OUR RETENTION DROPPED ONLY BECAUSE THE PIE BECAME MUCH BIGGER. THE OVERALL MARKET GREW BY ABOUT TWENTY PERCENT. SO, WE WERE SERVING MORE PEOPLE, BUT RETAINING FEWER. 
          BUT OUR MOST RECENT STUDY FOR 2026 SHOWS THAT TWO THIRDS OF THE MARKET IS NOW FLYING OUT OF IDA. IN A MARKET OF THIS SIZE, WHEN I COME IN AND I SAY, WHAT SHOULD OUR GOAL BE FOR THIS MARKET, WE USUALLY SAY WE NEED TO TRY AND STRIVE TO GET TO SIXTY SEVEN PERCENT RETENTION. 
          THAT'S THE GOAL. THAT'S USUALLY THE TOP OF WHAT WE CAN ACHIEVE. AND THAT'S WHAT I, I SAID IN 2016, AND I SAID IT'LL PROBABLY TAKE TWENTY YEARS, BUT WE SHOULD BE AT SIXTY SEVEN PERCENT, TWO THIRDS RETENTION IN TWENTY YEARS. INSTEAD, WE DID IT IN TEN. AND THAT'S WITH GROWTH IN THE MARKET, THE OVERALL MARKET SIZE. SO, WE ARE ONLY LOSING A THIRD OF PASSENGERS NOW. THOSE ARE PRIMARILY GOING TO SALT LAKE AND PRIMARILY FOR LONGER HAUL NON-STOPS. 
          SO, IF SOMEONE'S GOING TO LONDON, THEY CAN FLY NON-STOP FROM SALT LAKE, THEY'LL DRIVE TO SALT LAKE IN MANY CASES. 
          NOW, THE FARE HERE IS CHEAPER TYPICALLY, BUT PEOPLE DON'T ALWAYS REMEMBER TO CHECK. SO, WE STILL HAVE ROOM FOR GROWTH, BUT WE HAVE CLOSED THE GAP TO A LEVEL THAT THE VAST MAJORITY OF THE 150 REGIONAL AIRPORTS IN THIS COUNTRY WISH THEY WERE AT. 
          YES, PLEASE. YOU JUST MENTIONED THAT THE FARES HERE ARE CHEAPER, AND THAT'S, THAT'S A FALLACY TO MOST PEOPLE, OR, OR, YOU KNOW, MOST PEOPLE THINK THAT THE FARES ARE MORE EXPENSIVE HERE, AND THAT, THEREFORE, THEY GO TO SALT LAKE AND GET A CHEAPER FARE, AND THAT'S NOT TRUE. CORRECT, I'LL JUST SKIP AHEAD BECAUSE I CAN PROVE IT. SO, THESE ARE TRAVELERS TO AND FROM IDAHO FALLS. WHEN THEY FLY OUT OF IDA, THEY PAY ON AVERAGE TWELVE DOLLARS LESS EACH WAY THAN WHEN THEY DRIVE TO SALT LAKE CITY. THESE ARE JUST TRAVELERS TO AND FROM IDAHO FALLS. THIS IS THE FIRST TIME SINCE WE HAVE BEEN STUDYING THIS MARKET THAT THE FARE HAS BEEN SIGNIFICANTLY CHEAPER AT IDA THAN AT SALT LAKE CITY. SO, THAT'S A HUGE MESSAGE FOR THE COMMUNITY. 
          ON AVERAGE, YOU'RE GOING TO GET A CHEAPER TICKET WHEN YOU FLY OUT OF IDAHO FALLS. AND THAT'S A FUNCTION OF WE HAVE ALLEGIANT, YOU KNOW, PROVIDING VERY LOW-COST SERVICE IN KEY MARKETS, BUT ALSO, IT'S THE COMPETITION. HAVING DELTA, UNITED, AMERICAN, AND ALASKA, ALL IN THIS MARKET, THERE'S FOUR OF THE FIVE LARGEST AIRLINES IN THE COUNTRY SERVE THIS MARKET, THEY HAVE TO COMPETE ON PRICE NOW. AND SO, IF YOU'RE NOT MARRIED TO A SPECIFIC AIRLINE, AND YOU CHECK PRICES ACROSS ALL CARRIERS, WE HAVE VERY, VERY COMPETITIVE FARES. 
          WE, OUR, OUR FARE IS LOWER THAN THE FARE AT BOISE, AND THEY HAVE MUCH, MUCH MORE CAPACITY. THIS IS A VERY RARE PHENOMENON, BUT IT SPEAKS TO HOW WE RECRUITED SERVICE AND WHY WE RECRUITED THE AIRLINES WE RECRUITED TO THE DESTINATIONS THEY FLY TO, SO, THAT THEY CAN ALL PROVIDE COMPETITION TO EACH OTHER. NOW, IF YOU GO BACK AND YOU LOOK AT THE NUMBER OF PASSENGERS, IN THIS PERIOD, WE WERE RETAINING NINE HUNDRED AND SEVENTY, BUT WE STILL HAVE FIVE HUNDRED PEOPLE A DAY WHO DRIVE TO OTHER AIRPORTS. SO, WE STILL HAVE ROOM FOR GROWTH IN THE MARKET. WE'RE NOT DONE GROWING, AND WE'RE NOT DONE TRYING TO RETAIN THOSE PASSENGERS. 
          OUR NEXT GOAL WILL BE TO GET TO SEVENTY-FIVE PERCENT RETENTION, AND I THINK WE CAN GET THERE. 
          THAT'S WHERE THE OPPORTUNITY LIES, IS IN THOSE FIVE HUNDRED THAT ARE STILL DRIVING TO OTHER AIRPORTS. NOW, IN OUR CASE, A LOT OF THE PEOPLE WHO DRIVE TO OTHER AIRPORTS, IT'S NOT BECAUSE IT'S CHEAPER ANYMORE, IT'S BECAUSE WE RUN OUT OF SEATS ON PEAK DAYS. 
          SO, ON THURSDAYS AND SUNDAYS, WHICH ARE BOTH BUSY LEISURE AND BUSINESS TRAVEL DAYS, THERE ARE A LOT OF DAYS WHERE IT'S VERY DIFFICULT TO FIND A SEAT. EVEN AT THE LAST MINUTE, WE SELL OUT. YEAH. THE OTHER PIECE THERE IS THAT THAT ALSO FEEDS OUR PERCEPTION OF MORE EXPENSIVE. IF THERE'S NO SEATS SPECIFICALLY SOLD, THOSE TICKET PRICES GO UP, AND THEY GO UP ON THE DAYS PEOPLE ARE LOOKING TO TRAVEL. SO, THAT, JUST ONE THING I WANTED TO POINT OUT THERE. YEAH, ABSOLUTELY RIGHT. YEAH, THE AIRLINES PRICE TO TRY AND KEEP A COUPLE OF SEATS OPEN ON THE DAY OF TRAVEL FOR THE PERSON WHO MUST TRAVEL ON THAT DAY, BUT YOU'RE GOING TO PAY A PREMIUM TO TRAVEL ON THAT DAY. SO, THAT'S WHY YOU'LL SEE FARES GO UP AS YOU GET CLOSER TO THE DAY OF TRAVEL. 
          BUT WE DO HAVE MANY DAYS, PEAK DAYS, WHERE IT'S VERY DIFFICULT TO FIND EMPTY SEATS. SO, WITH THAT IN MIND, WE ARE FILLING THE MOST SEATS OF ANY AIRPORT IN THE PACIFIC 
          [00:25:01]
NORTHWEST. I KNOW IT'S HARD TO READ THIS, THE BIG THING IS THE RED LINE AT THE TOP. WE FILL THE HIGHEST SHARE OF SEATS OF ANY AIRPORT IN OREGON, IDAHO, WASHINGTON. 
          THE PACIFIC NORTHWEST IS DEFINED BY THE DEPARTMENT OF TRANSPORTATION. WE FILL ALMOST EIGHTY-FIVE PERCENT. THE AVERAGE IS EIGHTY-ONE PERCENT. 
          AND I DON'T POINT THIS OUT TO, YOU KNOW, CAUSE ISSUES OR ANYTHING WITH THE NEIGHBOR THAT'S DOWN, DOWN THE ROAD, BUT POCATELLO IS LOWEST IN THE SHARE OF SEATS BEING FILLED. AND THE MAIN REASON IS BECAUSE A LOT OF POCATELLO PASSENGERS DRIVE UP HERE BECAUSE OUR FLIGHT OPTIONS ARE MORE CONVENIENT AND PRICED BETTER. LASTING QUESTION. SO, TO THAT END, WHETHER POCATELLO OR ANY OTHER CHART LIKE THIS, WHEN YOU HAVE, WHEN YOU'RE AT THAT FIFTY PERCENT MARGIN, AT WHAT STAGE DO AIRPORTS START TO LOOK AT THAT AND SAY, WE SHOULD JUST CLOSE OUR DOORS AND SEND EVERYBODY TO THE NEXT CLOSEST OPTION? SO, IN POCATELLO, THEY'VE BEEN DELTA AND SKYWEST HAVE BEEN AT THAT STAGE. THE CITY HAS HAD TO PROVIDE REVENUE GUARANTEES A COUPLE OF TIMES IN ORDER TO RETAIN THE SERVICE BECAUSE IT'S VERY, THE AVERAGE FARE YOU NEED AT THAT LOAD FACTOR, WE CALL IT THE PERCENTAGE OF SEATS SOLD, IS ALMOST DOUBLE THE AVERAGE FARE YOU NEED HERE. 
          SO, YOU NEED A FOUR-HUNDRED-AND-FIFTY-DOLLAR ONE-WAY FARE JUST TO BREAK EVEN. IT GETS VERY DIFFICULT. BUT I THINK POCATELLO HAS SHOWN ITS COMMITMENT TO ENSURING THE SERVICES GO AWAY. THERE, THERE ARE OTHER AIRPORTS ON THERE. 
          WELL, SUN VALLEY IS, IS AN OUTLIER BECAUSE THE FARES ARE SO, HIGH THERE, IT DOESN'T MATTER. YOU KNOW, IT'S WILL ALWAYS BE PROFITABLE. 
          BUT THERE ARE OTHERS, WALLA WALLA AND YAKIMA IN PARTICULAR, ARE VERY CHALLENGED ON PROFITABILITY RIGHT NOW. WE DO NOT HAVE THAT PROBLEM AT ALL. SO, LET'S TALK ABOUT THE INDUSTRY, BECAUSE IT'S COMPLETE FLUX, BUT THAT DOES CREATE OPPORTUNITY FOR MARKETS LIKE OURS LOOKING AHEAD. SO, OIL, AND THIS CHART IS A LITTLE BIT OLD, BECAUSE I HAD TO CREATE THIS DECK. TODAY, OIL WAS TRADING AROUND NINETY DOLLARS A BARREL, SO, A LITTLE BIT HIGHER THAN WHAT YOU SEE THERE. OIL IS UP ABOUT FIFTY PERCENT THIS YEAR. 
          FOR AIRLINES, IT'S NEARLY DOUBLED. ON JANUARY SECOND, THEY WERE PAYING ABOUT TWO DOLLARS A GALLON FOR JET FUEL, AND THEY'RE PAYING ABOUT FOUR DOLLARS AND FIFTEEN CENTS RIGHT NOW ON AVERAGE FOR JET FUEL. 
          THAT CREATES A HUGE COST CHALLENGE. THAT'S ABOUT A QUARTER OF AN AIRLINE'S COST. EVERY TEN-CENT INCREASE PER GALLON IS FIVE DOLLARS MORE A SEAT ON OUR SERVICE HERE WITH THE TYPE OF AIRCRAFT WE HAVE PRIMARILY THAT THE AIRLINE HAS TO COVER. THE ADVANTAGE WE HAVE IS OUR LOCATION, ALL OF OUR, OUR LENGTHS OF FLYING, ALL OF OUR FLIGHTS ARE RELATIVELY SHORT. WE, YOU KNOW, DALLAS IS OUR LONGEST HAUL FLIGHT. 
          ON SHORT FLIGHTS, IT'S A LOT EASIER TO OVER CAP THESE FUEL COSTS. THE INCREMENTAL COST IS NOT THAT MUCH HIGHER. IF WE HAD A LOT OF FLIGHTS GOING TO THE EAST COAST, I WOULD BE REALLY WORRIED THAT WE WOULD BE LOSING THOSE BECAUSE THOSE, THEY BURN JUST SO, MUCH FUEL. 
          ON A SHORT FLIGHT, YOU CAN OVERCOME BECAUSE YOU ARE AT KIND OF A FAIR PREMIUM RELATIVE TO LONGER HAUL FLYING. SO, THIS IS A HUGE CHALLENGE FOR LONGER HAUL FLYING. IT WILL CAUSE AIRLINES TO TAKE PLANES THAT ARE FLYING MORE HOURS ON, ON LONG AND PUT THEM INTO SHORTER MARKETS. SO, FOR US, IT COULD RESULT IN AN INCREASE IN FREQUENCY ON ROUTES THAT WE ALREADY HAVE THAT BURN LESS FUEL. THOSE ARE OF MORE VALUE BECAUSE YOU CAN GET A TWO-HUNDRED-AND-FIFTY-DOLLAR FARE FROM HERE TO NEW YORK, OR YOU CAN GET A TWO-HUNDRED-AND-FIFTY-DOLLAR FARE FROM HERE TO SEATTLE, YOU MIGHT AS WELL PUT THAT PLANE HERE TO SEATTLE BURN A LOT LESS FUEL. SO, I'M NOT AS WORRIED ABOUT THIS FOR IDAHO FALLS AS FOR SOME OF THE OTHER MARKETS THAT HAVE GEOGRAPHICAL CHALLENGES. AIR TRAVEL AND AIRFARES, WHEN YOU LOOK AT THEM ON A CONSUMER PRICE INDEX BASIS, SO, THIS IS ADJUSTED FOR INFLATION, ACTUALLY AIR TRAVEL HAS, HAS BECOME MORE AFFORDABLE AS FUEL HAS GONE UP. WHAT'S HAPPENED IS EVERYTHING ELSE IS SO, MUCH MORE EXPENSIVE. AIRLINES HAVE BEEN TRYING TO CONTINUALLY RAISE FARES, BUT AS SOON AS THEY RAISE THEM MORE THAN A FEW PERCENTAGE POINTS, BOOKINGS DROP OFF. SO, THEY HAVE TO LOWER THEM AGAIN. SO, OVERALL EXPENSES ARE UP TWENTY-SIX PERCENT, BUT AIRFARES ARE ACTUALLY DOWN ABOUT FOUR PERCENT. SO, AIRFARE IS ONE OF THE THINGS THAT'S ACTUALLY REMAINED AFFORDABLE THROUGH THIS WHOLE INFLATION CRISIS. CONSUMER CONFIDENCE, THOUGH, IS A BIG WORRY BECAUSE WITH EVERYTHING BECOMING MORE EXPENSIVE, WHAT DO YOU CUT OUT OF YOUR BUDGET? TYPICALLY, DISCRETIONARY TRAVEL. OUR TRAVELERS WHO GO TO YELLOWSTONE, COME INBOUND, WHO GO TO GRAND TETON, WE MAY SEE FEWER OF THEM. THE ADVANTAGE THAT WE HAVE HERE IS THAT WE HAVE SUCH A STRONG BUSINESS BASE. THAT'S A SIGNIFICANT PORTION OF OUR TRAVEL, AT LEAST FORTY PERCENT 
          [00:30:02]
OF THOSE GETTING ON PLANES. 
          THOSE TRIPS ARE PRICED INELASTIC, WHICH MEANS THEY'LL PAY WHATEVER THEY HAVE TO PAY. SO, THE CORE OF OUR TRAVELER IS NOT GOING TO BE AFFECTED, BUT WE ARE WATCHING THE IMPACTS OF BOTH INFLATION AND AI ON EMPLOYMENT TO SEE WHAT ESSENTIALLY OUR PRICE ELASTIC TRAVELERS, THOSE WHO HEAVILY TRAVEL ON ALLEGIANT, WHO TRAVEL ON BASIC ECONOMY FARES, WHAT HAPPENS WITH THEIR DEMAND, ESPECIALLY AS WE GET INTO CHRISTMAS TIME. SO, IF WE START SEEING SOME WEAKNESS, WE'LL KNOW THAT THE ECONOMY IS WEIGHING DOWN. WE HAVE NOT SEEN THAT HERE AT ALL, AND FRANKLY, ACROSS THE ENTIRE WEST, WE HAVEN'T SEEN ANY. IN FACT, WE HAVE NOT SEEN DEMAND DEGRADATION. WE'VE SEEN A LITTLE BIT IN FLORIDA, A LITTLE BIT IN THE EAST COAST, BUT WE HAVE NOT SEEN IT HERE YET. 
          UNCERTAINTY DOES CREATE HUGE OPPORTUNITY, THOUGH. SO, IF YOU LOOK, THIS IS GOING BACK ABOUT EIGHTEEN MONTHS. THREE HUNDRED AND EIGHTY-NINE ROUTES HAVE BEEN CANCELED IN THE UNITED STATES OVER THE LAST EIGHTEEN MONTHS. 
          ONE OF THEM, IDAHO FALLS TO OAKLAND ON ALLEGIANT. AGAIN, I, I EXPLAIN WHY THAT WAS, BUT YOU'LL SEE IT ON THE MAP HERE. SO, AIRLINES HAVE PULLED THIS FLYING, BUT IT DOESN'T MEAN THOSE PLANES JUST WENT AWAY. THEY'RE REALLOCATED. 
          THREE HUNDRED AND SIXTY-NINE NEW ROUTES HAVE BEEN ADDED IN THAT TIME. SO, ONLY TWENTY NET NEW ROUTES HAVE BEEN PULLED FROM THE US AIR TRANSPORTATION NETWORK IN THE LAST EIGHTEEN MONTHS. 
          AIRCRAFT AND CREWS HAVE BEEN REALLOCATED. THAT'S HOW OUR SERVICE TO PORTLAND WAS PUT IN. 
          IT, IT WAS A CHANGE IN THE WAY ALASKA WAS FLYING IN SEATTLE TO MIDWEST FLIGHTS INSTEAD OF FLYING A COUPLE FLIGHTS A DAY WITH THE TYPE OF AIRCRAFT WE HAVE, FLY ONE FLIGHT A DAY WITH A BIG AIRPLANE, REDUCE YOUR OVERALL FUEL BURN PER SEAT, AND THEN THAT FREED UP AIRCRAFT TO BE ADDED ON PORTLAND-TIDAL FALLS, PORTLAND TO WENATCHEE, PORTLAND TO TUCSON, A SECOND FLIGHT A DAY. SO, YOU SEE AN INCREASE IN SHORTER HAUL FLYING WITH AIRCRAFT THAT ARE BEING FREED UP BECAUSE OF THE WAY AIRLINES ARE APPROACHING THE FUEL ENVIRONMENT AND THE COST ENVIRONMENT. THAT IS WHAT WE'RE REALLY LOOKING AT AS WE LOOK FORWARD AND WE THINK ABOUT THE SERVICE THAT WE'RE MISSING. 
          WHICH I WILL GET INTO RIGHT NOW. SO, AS WE LOOK AHEAD, THIS IS THE NUMBER OF PASSENGERS PER DAY WE'VE GOT IN, IN THESE MARKETS. THE ONES IN GRAY, WE HAVE NONSTOP SERVICE TO TODAY. THE ONES IN BLUE, WE DON'T HAVE A NONSTOP DAILY FLIGHT. WE DO HAVE SERVICE TO ORANGE COUNTY VIA LEGION BUT WE DON'T HAVE SERVICE TO LAX. THAT'S OUR LARGEST UNSERVED MARKET. WE HAVE 105 PEOPLE A DAY IN EACH WAY, IN EACH DIRECTION WHO TRAVEL TO AND FROM LOS ANGELES. SAN FRANCISCO, SECOND LARGEST UNSERVED MARKET. WASHINGTON DC, SORRY, WE'RE NOT GOING TO GET A SERVICE TO WASHINGTON DC, GUYS. IT'S NOT GOING TO HAPPEN. I WISH I COULD TELL YOU IT WAS. SAN DIEGO, ANOTHER BIG MARKET THAT ALLEGIANT USED TO SERVE. ALLEGIANT DOESN'T SERVE SAN DIEGO ANYMORE. 
          BUT YOU KNOW WHAT? ALASKA IS BUILDING A HUB THERE. SO, THAT IS DEFINITELY IN ALASKA'S STRATEGIC PLAN TO GROW SAN DIEGO. WHEN YOU LOOK LONGER TERM, AS UNITED HAS GROWN HERE, SERVING DENVER, SERVING CHICAGO, MAYBE HOUSTON IS A CONNECTING POINT AT SOME POINT, LONG-TERM, THINKING FIVE YEARS OUT. 
          ALASKA JUST ANNOUNCED BOISE TO HONOLULU NONSTOP. SO, YOU GUYS MAY LOOK AT ME AND SAY, WELL, HONOLULU, THAT'S CRAZY. 
          ALASKA, BECAUSE IT OWNS HAWAIIAN AIRLINES NOW, WANTS TO GROW LESS THAN DAILY FLYING TO THE HAWAIIAN ISLANDS, AND IT'S ADDED SPOKANE AND BOISE FIRST, BUT IT IS SERIOUSLY LOOKING AT PLACES LIKE EUGENE, LIKE IDAHO FALLS, LIKE MEDFORD. AND SO, THAT IS SOMETHING THAT WE TALK TO THE CARRIERS ABOUT, BECAUSE WITH STRATEGIC PLANNING AND HOW THE NETWORKS HAVE CHANGED, IT'S SOMETHING THAT IS LEGITIMATE, LEGITIMATELY POSSIBLE IN THE NEXT FIVE TO TEN YEARS. THE SHORT-TERM TOP OPTIONS, THOUGH, ARE THE ONES WE'RE REALLY FOCUSED ON RIGHT NOW. SO, WE HAVE TO MATCH OUR STRATEGY TO AIRLINE STRATEGY. THIS IS A MAP OF WHERE ALL THE MAJOR CARRIERS HAVE THEIR HUBS, THE NETWORK CARRIERS, SO, THOSE ARE THE CARRIERS THAT LIKE TO FLY YOU TO DENVER AND CONNECT YOU TO ANOTHER FLIGHT TO YOUR ULTIMATE DESTINATION, SO, NOT INCLUDING ALLEGIANT, WHO WANTS TO JUST FLY YOU TO YOUR VACATION. 
          BUT THE NETWORK CARRIERS, WE HAVE TO THINK ABOUT WHERE ARE THEY STRONG AND WHERE ARE THEY GROWING. AND SO, YOU LOOK AT THE LA BASIN, AND YOU HAVE ALL OF THE CARRIERS WHO HAVE A HUB THERE, AND THEY'RE ALL GROWING. SO, WE TALK TO ALL OF THOSE CARRIERS ABOUT FLYING TO LOS ANGELES. 
          YOU LOOK AT SAN FRANCISCO, THAT'S PRIMARILY UNITED. SO, WHEN WE TALK ABOUT SAN FRANCISCO, WE'RE NORMALLY TALKING TO UNITED. YOU KNOW, AMERICAN FLIES US TO PHOENIX AND DALLAS. WHY? BECAUSE THOSE 
          [00:35:01]
ARE TWO MASSIVE STRONGHOLDS. 
          UNITED FLIES TO DENVER. WHY? THAT'S THEIR LARGEST SUB BY DEPARTURES. SO, WHEN WE THINK ABOUT WHERE WE'RE GOING TO BE IN THE FUTURE, THESE ARE THE CARRIERS THAT ARE GOING TO GO TO THOSE SPECIFIC DESTINATIONS AS THEY TRY TO STRENGTHEN THEIR HUBS. AND ALASKA, OF COURSE, GROWING SAN DIEGO AND GROWING LOS ANGELES IS SOMETHING WE TALK TO THEM ABOUT. SO, WHEN WE THINK ABOUT OUR SHORT-TERM ROUTE DEVELOPMENT PRIORITIES, SAN FRANCISCO, LA, AND SAN DIEGO, WE DO HAVE A SMALL COMMUNITY AIR SERVICE DEVELOPMENT GRANT FROM THE DEPARTMENT OF TRANSPORTATION. 
          WE HAVE A MILLION-DOLLAR TOTAL INCENTIVE TO PROVIDE A MINIMUM REVENUE GUARANTEE. SO, THAT, THAT'S AN INCENTIVE THAT WE DON'T PAY UNLESS THE SERVICE LOSES MONEY. THAT WAS WRITTEN FOR DAILY SERVICE TO LOS ANGELES. WE HAVE A WAIVER IN PLACE. WE CAN ALSO USE IT FOR SAN FRANCISCO. SO, WE'RE IN DISCUSSIONS WITH SEVERAL CARRIERS ABOUT BOTH OF THOSE DESTINATIONS AND POTENTIALLY TRYING TO GET THAT SERVICE IN PLACE IN 2027. AND WE HAVE HAD DISCUSSIONS WITH MULTIPLE CARRIERS ABOUT ALL THREE OF THESE PARTICULAR MARKETS. 
          OUR LONGER-TERM PRIORITIES, I DIDN'T HAVE ON, ON THE LIST OF DESTINATIONS BECAUSE IT'S NOT IN THE TOP TWENTY, BUT YOU'LL REMEMBER WE HAD SEASONAL SERVICE TO MINNEAPOLIS-ST. 
          PAUL BEFORE THE PANDEMIC ON DELTA. PRE, GOES BACK ACTUALLY ALL THE WAY TO NORTHWEST. THAT IS A BIG MISSING SPOKE FOR DELTA, AND I THINK IT'S ONE THEY SHOULD BE FLYING, AND IT'S ONE THAT WE TALKED TO THEM ABOUT. HOUSTON IS UNITED, AND THAT'S ONE NOW THAT THEY'RE SERVING CHICAGO THAT IS REALISTIC. AND THEN AS WE LOOK MUCH LONGER TERM, ATLANTA IS NOT A BIG LOCAL MARKET FOR US, BUT IT'S THE LARGEST HUB IN THE WORLD. HUNDRED AND SIX MILLION PEOPLE A YEAR GO THROUGH THAT AIRPORT, AND DELTA HAS ADDED SERVICE FROM ATLANTA TO BOZEMAN, THEY'VE ADDED ATLANTA TO KALISPELL, THEY'VE ADDED ATLANTA TO SPOKANE, SO, IT'S VERY MUCH IN THE STRATEGY OF WHAT THEY'RE TRYING TO DO WITH ATLANTA, AND THEN WE TALKED ABOUT THE REASON FOR HONOLULU ON THAT MAP AS WELL. 
          BUT WE ARE IN A VERY HIGHLY COMPETITIVE LANDSCAPE. EVERY DOT YOU SEE THERE HAS A SIX-FIGURE INCENTIVE AT MINIMUM FOR AIR SERVICE. 
          MANY OF THEM HAVE MUCH MORE. 
          LINCOLN, NEBRASKA, TO GET SERVICE ON DELTA SPENT SIX AND A HALF MILLION DOLLARS. 
          SO, WE'VE SEEN THE PRICE OF AIR SERVICE DEVELOPMENT GROW ASTRONOMICALLY BUT THAT'S BEEN MAINLY IN MARKETS THAT DON'T HAVE THE FUNDAMENTAL DEMAND THAT, THAT CAN BE PROVEN LIKE IDAHO FALLS DOES. AND SO, WE'VE BEEN ABLE TO RECRUIT, WE, WE'VE USED REVENUE GUARANTEES WHERE THEY'VE BEEN NEEDED, BUT WE'VE BEEN ABLE TO PRIMARILY RECRUIT BY ILLUSTRATING THE DEMAND, IMPROVING THE DEMAND AFTER THE SERVICE BEGAN. AND THAT'S OUR MAIN, OUR MAIN LEVER IN RECRUITMENT IS THE ACTUAL DATA, BUT IT HELPS TO HAVE THINGS LIKE THE GRANT THAT WE HAVE BECAUSE IT CAN MOVE US UP A LIST. SO, I POINT THIS OUT JUST TO SAY THAT AN AIRCRAFT CAN GO ANYWHERE, AND WHEN AN AIRLINE'S EVALUATING ON EQUAL TERMS TO MARKETS THAT ARE VERY, VERY SIMILAR AND THEY THINK WILL BE SIMILARLY PROFITABLE, THEY'RE ALWAYS GOING TO PUT THAT AIRCRAFT WHERE THERE'S LESS RISK. AND SO, WE'VE GOT TO BE AWARE OF THAT AS WE MOVE FORWARD. 
          SO, WITH THAT THANK YOU VERY MUCH FOR THE TIME. I DON'T WANT TO BELABOR ANY POINT, BUT OBVIOUSLY VERY HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE. IF I JUST ADD THAT IT'S NOT TWO MARKETS, IT'S MORE LIKE SIX TO TWELVE MARKETS, RIGHT? TO CHOOSE FROM. WELL, YEAH. RIGHT. ABSOLUTELY. I MEAN, IT'S A VERY COMPETITIVE LANDSCAPE. ABSOLUTELY. THANK YOU. ANY QUESTIONS? THAT'S THE BEST REPORT YOU'VE EVER GIVEN US, CHAD. IT HELPS WHEN THE DAD IS IN A TRAILER, RIGHT? THAT'S GREAT. MY DAD WAS TELLING DIRECTOR TURNER THE LAST COUPLE OF TIMES I FLOWN OUT OF IDAHO FALLS AT SIX IN THE MORNING, THE DELTA MAIN, WHAT DO YOU, WHAT DO YOU CALL IT, MAIN LINE, MAIN LINE AIRCRAFT? CORRECT. 
          WAS OVERSOLD. OVERSOLD? OVERSOLD BY FOUR PEOPLE. I MEAN, IT WAS BOTH TIMES THEY WERE ASKING FOR PEOPLE WHO WERE WILLING TO TAKE A LATER FLIGHT, AND THAT WAS THEIR MAIN LINE AIRCRAFT. SO, IT'S NOTICEABLE AS A PASSENGER, IT'S NOTICEABLE IN THE AIRPORT, IT REALLY IS THAT BIG. HELP, HELP ME WITH UNDERSTAND SOMETHING A LITTLE BIT. I MEAN, AVERAGE FARE PAID BY IDAHO, USING IDAHO FALLS IS TWO FIFTY-THREE, AND THEN YOU TALKED ABOUT THE DRIVING THE BOISE THING. FIRST TIME IN A DECADE, I DON'T, I DON'T, I DON'T FARES HAVE BEEN LOWER THAN AT SALT LAKE CITY, TWELVE PERCENT DISCOUNT OVER DRIVING. CORRECT. THAT, THAT DOESN'T INCLUDE THE FUEL YOU'RE TALKING ABOUT DRIVING? NO, THAT'S PURE FARE. 
          THAT'S, THAT'S JUST WHAT YOU GET FOR THE AIRLINE. OKAY. 
          YEAH, THAT, THAT CAUGHT ME BY SURPRISE THAT IT'S ACTUALLY CHEAPER NOT COUNTING WHAT YOU 
          [00:40:02]
SPEND ON FUEL TO DRIVE DOWN THERE AND PARKING AND ALL THAT SORT OF STUFF. IT'S VERY UNUSUAL IN A REGIONAL AIRPORT MARKET FOR THAT TO HAPPEN, BUT IT SPEAKS TO THE COMPETITION HERE. AND OBVIOUSLY WE'RE HAPPY TO TELL THAT. YOU MADE A COMMENT THAT A BIG SHARE OF TICKETS ARE BOUGHT BY BUSINESSES, AND THEY'RE VERY ELASTIC IN PRICE. I UNDERSTAND THAT. 
          SO, IS THAT THE KIND OF THING WE LOOK AT OTHER THINGS THAT ARE POTENTIALLY COMING OUR WAY TO BUY INL AND THAT KIND OF STUFF? AND SO, BUSINESSES, GROW THAN THIS. ABSOLUTELY. 
          SO, THE BUSINESS DEMAND IS THE PIECE THAT KEEPS OUR SERVICE YEAR-ROUND. IN THE SUMMER, AIRLINES COULD FILL, NOT ONE, BUT THEY COULD FILL DOZENS UPON DOZENS OF PLACES. THE WINTER IS MORE CHALLENGING, BUT OUR BUSINESS DEMAND IS SO, INCREDIBLY STRONG, AND IT'S THE TYPE OF TRAVEL THAT IS CRITICAL AND COLLABORATIVE, SO, IT'S, YOU KNOW, SCIENTISTS WORKING TOGETHER ACROSS MULTIPLE LAB FACILITIES, IT'S ALL OF THE ASSOCIATED BUSINESS, AND THAT'S THINGS LIKE POWER COMPANY DEMAND, PACIFIC NORTHWEST, IT'S ALL THINGS THAT CAN'T BE DEFERRED. 
          PEOPLE MUST TRAVEL. AND WHEN WE HAVE SUCH A VIBRANT COMMUNITY WITH SO, MUCH INVESTMENT, AND I MEAN, I'VE BEEN COMING HERE FOR ALMOST TWENTY-FIVE YEARS, AND I'VE SEEN IT CHANGE DRAMATICALLY, BUT, AND THEN THE HEADQUARTERS THAT WE HAVE, AGRICULTURE AND OTHERWISE THAT'S EXACTLY THE TYPE OF COMMUNITY THAT WORKS REGARDLESS OF WHAT'S HAPPENING IN THE ECONOMY. WELL, BECAUSE I DON'T THINK THERE'S SUCH A THING AS STATUS QUO, AND I SEE LOOKING FOR A NEW AND HAVING TOP PRIORITY AND SECOND PRIORITY WILL BE PART OF IT, BUT WHAT, WHAT MAKES AN AIRPORT ITSELF ATTRACTIVE TO PEOPLE? TO TRAVELERS OR TO? YEAH, TO TRAVELERS. I THINK WE HAVE WHAT MAKES IT ATTRACTIVE. I CAN TELL YOU IF SOMEBODY GO, GOES TO AN AIRPORT THIS SIZE TWICE IN A WEEK QUICK IN AND OUT, GREAT TSA, SHORT WALKS, AFFORDABLE PARKING AND THEN THE BIG KEY IS WE DON'T CONTROL WHAT WE SELL, RIGHT? THE AIRLINES CONTROL IT, BUT WE HAVE SUCH GOOD RELATIONSHIPS. I THINK WE HAVE GREAT FLIGHT SCHEDULES; WE HAVE GREAT CONNECTIVITY. IN FACT, THE PRICING IS GOOD. SO, WE HAVE EVERYTHING IN OUR FAVOR RIGHT NOW THAT SO, MANY AIRPORTS VIRTUALLY DID BECAUSE WE CAN CONTROL THE THINGS LIKE EXPERIENCE, AND IAN HAS DONE A GREAT JOB WITH THAT. BUT WE CAN'T CONTROL WHERE THE AIRLINES GO, WE, WE INFLUENCE, AND WE CAN'T CONTROL THE PRICING. WE ALSO CAN'T CONTROL THE SCHEDULE, WE INFLUENCE. 
          BUT WE'VE HAD GOOD INFLUENCE ON ALL THOSE THINGS. I THINK THE ONE THING I'D ADD TO THAT, THOUGH, IS TO CONTINUALLY HAVE A CONVERSATION WITH THE AIRLINE. THEY LOOK AT DATA FOR EACH MARKET FAIRLY INFREQUENTLY. WE'RE NOT IN FRONT OF THEM HAVING A CONVERSATION AND POINTING OUT OBVIOUS ASPECTS OF MAYBE HOW THEY CAN IMPROVE THEIR SERVICE, AND I KNOW FALLS, AND WE'RE MISSING AN OPPORTUNITY AS WELL, AND THAT'S, THAT, THAT'S A KEY POINT FROM MY PERSPECTIVE, IS SOMETIMES THE AIRLINES DON'T GET IT QUITE RIGHT, THEY'RE CLOSE TO THE MARK, AND JUST AS AN EXAMPLE OF THAT, I THINK SEE SOME CHANGES WITH PHOENIX SERVICE IN AMERICA IN THE NEXT COUPLE OF MONTHS, AND THEY'RE ADDING TWO R1S OVER THE, OVER THE HOLIDAYS, AND I THINK THAT'S GOING TO SHOW SOME VERY POSITIVE CHANGE. 
          SO, IT'S SIMPLE THINGS LIKE THAT THAT CONTINUE THE CONVERSATION. THIS IS VERY ANECDOTAL, BUT I HAVE A SUBURBAN THAT I RENT ON TURO, AND I'VE HAD NO LESS THAN A DOZEN RENTERS WHO WILL TELL ME EITHER WHEN THEY ARRIVE OR AFTER THEY LEAVE, YOUR AIRPORT IS THE AWESOMEST, YOU KNOW, THEY JUST LOVE, LOVE OUR AIRPORT. THEY CAN'T BELIEVE HOW, HOW FRIENDLY, HOW QUICK, HOW EASY IT IS TO GET TO THE CAR. I MEAN, THEY JUST, THEY LOVE EVERYTHING ABOUT IT. I HAVE SO, MANY QUESTIONS FOR YOU NOW. 
          TURO'S NOT THE TOPIC TODAY. SO, JACK, DOES THIS REPORT COMPANY WITH, COME WITH ANY ADDITIONAL RECOMMENDATIONS, I GUESS? I MEAN, YOU KNOW, I SEE THAT BIG SLIDE WITH INCENTIVES. WELL, SO, RIGHT NOW, I'M NOT, OUR INCENTIVE PROGRAM WITH OUR GRANT, WE'RE IN GOOD SHAPE. SO, I DON'T THINK THERE'S ANYTHING MORE WE NEED TO DO ON OUR CURRENT PATH FOR SERVICE TO THE BIG MARKETS IN CALIFORNIA. WE WILL ALWAYS BE GETTING, THE BIGGEST RECOMMENDATION IS, IT'S VERY IMPORTANT THAT WE CONTINUE TO MEET WITH THE CARRIERS AS OFTEN AS WE CAN IN PERSON, AND WE DO FREQUENTLY MEET WITH CARRIERS. AND SO, I THINK IAN IS VERY AGGRESSIVE THAT WAY. BECAUSE 
          [00:45:02]
WITH FUEL WHERE IT IS, INCENTIVE REQUESTS MAY CHANGE. 
          SO, OPEN MINDS, IF WE GET DIRECT CARRIER FEEDBACK, WILL BE IMPORTANT. 
          THE FEEDBACK THAT WE HAVE AS OF TODAY FROM THE CARRIERS THAT WE HAVE TARGETED FOR THESE ROUTES IS THAT WE'RE IN GOOD SHAPE. IT'S A MATTER OF NETWORK EVALUATION, AND I STILL, I FEEL THAT WE WILL HAVE ONE OF THOSE CALIFORNIA MARKETS, AND I CAN'T TELL YOU WHICH ONE BECAUSE I'M NOT SURE. 
          WE HAVE MULTIPLE CARRIERS INTERESTED. WE WILL HAVE ONE OF THEM NEXT YEAR. THANK YOU. 
          AND IT DOES GO HAND IN HAND WITH THE AIRPORT REMODEL. I MEAN, WE CAN'T, WE HAVE MORE SERVICE, WE HAVE A LOT HAPPENING, I MEAN, JUST AS, IT DOES HAVE TO GO HAND IN HAND WITH THAT. IF, IF I MAY RESPOND TO COUNCIL MEMBER ZIEL-DINGMAN, IT'S A COMMENT THERE IS, YOU KNOW, WE HAVE SOME TOOLS THAT ARE READILY AVAILABLE TO US FOR THE SERVICE TO CALIFORNIA. WE NEED TO USE THOSE FIRST. FIND OUT WHERE THAT PLACES US, PRIMARILY WITH WHAT THE MAYOR HAS MENTIONED, THE TERMINAL FACILITIES, AND THEN FORMULATE THE NEXT STEP FROM THAT POINT MOVING FORWARD SO, THAT WE'RE NOT GETTING TOO FAR OUT IN FRONT OF OUR SKIS. I OBVIOUSLY HAVE OPERATIONAL CONCERNS. I'VE SHARED MANY OF THOSE WITH ALL OF YOU AT CERTAIN DIFFERENT POINTS IN TIME. BUT, BUT RIGHT NOW WE'VE GOT TOOLS, WE USE THEM, AND THEN MOVE ON TO THE NEXT CREATION OF THE TOOL AND FIND OUT WHERE THE UNDERLYING MARKET IS AT THAT POINT IN TIME. THANK YOU. THANK YOU VERY MUCH. ANY OTHER QUESTIONS? JUST, OKAY. 
          THANK YOU FOR THE REPORT. 
          GREAT, GREAT NEWS, GREAT REPORT. OKAY. OUR NEXT 
          [Finance]
ITEM IS COMING TO US FROM FINANCE. IT IS SOMETHING THAT WAS NEW TO MY ATTENTION AS WE MOVED INTO WORKDAY, THAT FOR THE LAST SEVERAL YEARS, COUNCIL HAS BEEN RECEIVING OUR RUN, THE SETTLEMENT RUN, PRIOR TO THEM ACTUALLY GOING OUT THE DOOR. SO, I HAVE INVITED OUR FINANCE DEPARTMENT DIRECTOR MARK HAGEDORN, TO COME AND HAVE A DISCUSSION ABOUT WHAT THE CITY'S WEEKLY CLAIMS ARE, WHAT THE SETTLEMENT PROCESS IS, AND WHAT IT IS THAT COUNCIL SHOULD BE LOOKING FOR AND TO ANSWER ANY QUESTIONS THAT HAVE COME UP IN THE RECENT WEEKS. 
          THANK YOU. APPRECIATE THIS OPPORTUNITY TO KIND OF GO THROUGH THE PROCESSES AND WORKDAY AND HOW IT'S COMING TO YOU, IF IT DOES LOOK DIFFERENT, IF IT DOES FEEL DIFFERENT, BUT ALSO UNDERSTAND WHAT WE'RE DOING PRIOR TO YOU GETTING TO IT. AND SO, WE'RE GOING TO KIND OF GO THROUGH. THE FREE PICTURE. YEAH, IT WAS OAK CREEK. OKAY, SO, THE PURPOSE HERE IS TO KIND OF EXPLAIN THE PROCESS LIKE I MENTIONED, AND ALSO TO MAKE SURE WE'RE ON THE SAME PAGE. I DID PUT A COUPLE OF DEFINITIONS ON HERE, JUST SO, YOU UNDERSTAND THAT A CLAIM IS AN AMOUNT OWED TO THE CITY. WE USE THE WORD CLAIM QUITE A BIT. IT'S KIND OF LIKE AN INSURANCE CLAIM, BUT THAT'S KIND OF THE IDAHO LANGUAGE. AND THEN SETTLEMENT RUN, WHICH IS A BATCH OF CLAIMS THAT WE PUT TOGETHER TO BE SENT OUT. SO, WE GO THROUGH THE PROCESS APPROVED INVOICES, OUR SUPPLIER INVOICES ARE SENT OVER TO THE PROCUREMENT OFFICE. 
          THEY GO THROUGH A THREE-WAY MATCH WHERE WE MATCH THE PO, THE INVOICE, AND THE RECEIVING DOCUMENT TO MAKE SURE THEY ALL ALIGN. 
          SORRY, I CAN MAKE IT BIGGER. 
          AND THEN A SPECIALIST REVIEWS THAT, MAKES SURE IT'S CORRECT, IT, IT MEETS LOOKS RIGHT, AND THEN IT GOES ON TO GENERATE THE SETTLEMENT REPORT, PHONE THAT SETTLEMENT REPORT, THE EMAIL'S CREATED, AND SENT OUT TO COUNCIL. AND AFTER THAT'S DONE, THE PROCUREMENT MANAGER GOES THROUGH EACH INVOICE AND, AND REVIEWS IT TO MAKE SURE THE VENDOR'S CORRECT MAKE SURE THE AMOUNT'S CORRECT, THE PO'S CORRECT. OUR SECONDARY REVIEW. AFTER THE CURRENT MANAGER REVIEWS IT, THEN IT GOES TO THE TREASURY OPERATIONS MANAGER AND MYSELF TO REVIEW BEFORE IT'S THEN IT'S GENERATED AND SENT FOR PAYMENT. WHO SHOULD I CALL IF I HAVE A QUESTION? YOU COULD CALL ME, OR YOU CAN SEND ME AN EMAIL. 
          IF I'M, IF I'M GOING, YOU KNOW, REVIEWING THIS AND I COME ACROSS SOMETHING THAT LOOKS UNUSUAL TO YOU, YOU'D BE THE PERSON TO COME? YOU WOULD SEND IT TO MYSELF, AND YOU COULD ALSO INCLUDE THE AP, ACCOUNTS PAYABLE EMAIL ADDRESS. 
          THAT'S CORRECT. SO, KEEP GOING, AND AT SOME POINT, 
          [00:50:02]
TELL YOU THIS IS HOW YOU SHOULD, WHAT YOU SHOULD BE LOOKING FOR. 
          THAT'S JUST OUR PROCESS, SO, THAT YOU KNOW THAT THINGS HAVE BEEN LOOKED AT AND REVIEWED. 
          IT'S NOT JUST, WE DON'T EXPECT YOU TO KNOW EVERYTHING AND WHETHER IT'S GOOD OR NOT. NOW WE'LL DISCLOSE THAT NOT ALL INVOICES OR SUPPLIER INVOICES ARE PAID AFTER YOU REVIEW IT. SOME OF THEM ARE PAID BEFORE. 
          UTILITY BILLS, REFUNDS WE HAVE PAYROLL LIABILITIES, DEBT PAYMENTS, THINGS THAT TYPICALLY ARE GENERATED FROM THE BANK, THAT THERE'S LIKE A PUSH AND A PULL AT A BANK. SOME TRANSACTIONS COME AUTOMATICALLY. THOSE TYPICALLY HAPPEN IN THE NEXT AVAILABLE SETTLEMENT RUN IS WHEN YOU WOULD SEE THEM. WE DO HAVE SOME EMERGENCY PAYMENTS, WHICH MEANS THERE'S A LOT OF SERVICE ABOUT TO HAPPEN, OR THERE'S SOME KIND OF URGENT NATURE THAT A PAYMENT NEEDS TO GO OUT. WE TREAT THOSE VERY CAREFULLY BECAUSE IN A LOT OF CASES, THAT'S A FRAUD RISK. 
          WHEN A SUPPLIER COMES TO US AND SAYS, WE HAVE TO GET PAID IMMEDIATELY, THAT MAKES US THINK OF, IS THIS ACTUALLY LEGIT? SO, WE FOUND A COUPLE OF CASES THAT RECENTLY VENDOR CAME TO US SO, THAT THEY NEEDED PAID IMMEDIATELY, AND WE START LOOKING AT IT. WE REVIEWED IT, GOT TO THE POINT THAT IT WAS NOT THE RIGHT VENDOR, IT WAS A, IT WAS A SPAM ACCOUNT. AND SO, WE WERE VERY CAREFUL AND REVIEWED THINGS THAT ARE EMERGENT IN NATURE, BUT IT DOES HAPPEN SOMETIMES THERE ARE PAYMENTS THAT NEED TO GO OUT SOONER THAN LATER. WHERE CONTROLS ARE HAPPENING BEHIND THE SCENES, WE RESTRICT THE SUPPLIER INVOICES SO, THAT THE SUPPLIER SETUP, SO, THAT ONLY, LIKE, THE PROCUREMENT TEAM CAN ADJUST THE SUPPLIER. WE DON'T LET DEPARTMENTS ADJUST SUPPLIER DATA. WE ACTUALLY HAVE A SUPPLIER PORTAL, WHICH WE ENCOURAGE THE SUPPLIER THEMSELVES TO GO OUT AND MAKE THAT CHANGE, BUT SOMETIMES WHEN OUR SUB NEW VENDORS, WE WILL DEVELOP ONLY A FEW PEOPLE HAVE THAT PERMISSION SYSTEM WORKING TO DO THAT. WE GO THROUGH MULTIPLE APPROVALS, THE DEPARTMENT, THE PROCUREMENT TEAM, THE TREASURY TEAM ALL GO THROUGH THEIR APPROVALS, AND WE SEGREGATE THE WORK. THE PROCUREMENT TEAM CAN CREATE A PAYMENT TYPE, BUT THE TREASURER'S OFFICE ACTUALLY INITIATES IT AND EXECUTES THAT. 
          THAT WAY WE HAVE SEGREGATION OF DUTIES IN, IN THAT PROCESS. AND THEN WE HAVE AN INDEPENDENT RECONCILER WHO'S NOT IN THE PROCESS. THAT COVERS ALL OUR INTERNAL CONTROL FRAMEWORK, AND THAT IS ONE OF THE OPINIONS AUDITORS GIVE US EACH YEAR IS TO ENSURE THAT WE HAVE PROPER INTERNAL CONTROLS AND WE'RE FINANCING THIS PROCESS FOR US. DOES BROOKDALE HAVE ANY KIND OF FOR ON THAT AUDIT FUNCTION, ANY KIND OF SAMPLE ENTERED IN IT DOES JUST AUTOMATICALLY, BECAUSE YOU HAVE CONTROLS THAT ARE LISTED THERE, TYPE OF FIVE, BUT I'M JUST CURIOUS, IS IT KIND OF MECHANISM THAT'S JUST KIND OF SIMPLE? IT IS NOT. 
          HOWEVER, EACH YEAR WE DO AN INTERNAL AUDIT, A SELF-REVIEW IN CERTAIN AREAS. SOMETIMES IT'S PAYROLL, SOMETIMES PURCHASING, SOMETIMES IT'S ASSETS. 
          AT SOME POINT IN THE FUTURE, FINANCE WILL DEVELOP AN INTERNAL AUDIT FUNCTION. 
          LARGER CITIES GET TO THAT POINT WHERE YOU HAVE AN INTERNAL AUDIT. SO, THAT KIND OF GETS US TO THE POINT, THE BACKGROUND LEADING UP TO THE OVERALL QUESTION IS THE STATE LAW REQUIRES THAT COUNCIL APPROVE ALL CLAIMS GOING OUT. 
          ALL CLAIMS AGAINST THE CITY SHALL BE APPROVED BY THE CITY COUNCIL PRIOR TO THE PAYMENT OF SUCH CLAIMS. AND CITY COUNCIL STAFF ESTABLISHED A MAINTAINED ADEQUATE RESPONSIBLE SYSTEM IN CONTROL. SO, THAT'S KIND OF THE ROOT OF THE QUESTION HERE OF WHAT, HOW DO WE DO THAT? SO, WE DO THAT THROUGH A WEEKLY EMAIL TO THE COUNCIL SO, THAT THEY CAN SEE THE TRANSACTIONS. IT GIVES YOU TRANSPARENCY, IT GIVES YOU OPPORTUNITY TO SEE THAT ALL THE PAYMENTS THAT ARE GOING OUT FROM THE CITY, IT'S SEPARATE FROM THE PURCHASING PROCESS. 
          BUT WE USE AN AUDITING FUNCTION, WHICH IS CALLED A NEGATIVE CONFIRMATION. AND NEGATIVE CONFIRMATION MEANS IT'S A CONFIRMATION THAT'S SENT OUT THAT UNLESS YOU SEND A REPLY BACK, IT'S CONSIDERED APPROVED. AND SO, THIS IS A, A TYPICAL AUDITING PRACTICE IS DONE WITH LARGER CITIES IN IDAHO DO 
          [00:55:01]
THE SAME PROCESS. THEY DO THIS NEGATIVE CONFIRMATION. AND IT'S BEEN A HISTORICAL PRACTICE. 
          SINCE I, BEFORE I WAS HERE, LOOKING BACKWARDS TO THE BEGINNING OF NAVAJO LINE, WHICH IS TWENTY, 2011, AS WHERE THIS PROCESS KIND OF HISTORICALLY WAS ADOPTED AND USED. UP UNTIL 2017, THERE WAS A POST-RATIFICATION OF ALL PAYMENTS, AND AT THAT POINT, COUNCIL FELT THAT THAT WAS REDUNDANT, AND SO, WE DISCONTINUED THAT PROCESS. 
          AND SO, THAT'S OUR, THE WAY THAT WE ARE IMPLEMENTING 50-10117 OF THE STATE CODE. 
          SO, WE'RE NOT SAYING ANYTHING WE'RE APPROVING. THAT'S CORRECT. CAN YOU IMAGINE WHAT IT WOULD BE, WHAT A MESS IT'D BE FOR FINANCE IF THEY HAD TO WAIT FOR EVERY COUNCIL MEMBER TO, OH MY GOSH. SO, THE SMALL, THE SMALLER CITIES WITHIN IDAHO DO HAVE WAIT FOR COUNCIL APPROVAL EACH TIME. 
          THE BIGGEST CITY THAT DOES THAT IS FORT FALLS, BUT THEY HAVE WEEKLY COUNCIL MEETINGS TO DO IT. BOISE, MERIDIAN, NAPA, CALDWELL, THEY ALL DO THIS NEGATIVE COMBINATION OR VARIATION OF IT. SO, LET'S GO OVER WHAT THE REPORT LOOKS LIKE AND, AND KIND OF GO OVER WHAT WE WOULD SEE AS WHAT YOU, WHAT YOU ADD TO IT, THIS PROCESS. THERE'S FOUR TO FIVE TABS. THE FIRST TAB IS THE SUMMARY TAB OF THE, THE OVERALL COST THAT'S GOING OUT THAT WAY. SECOND TAB IS THE SUPPLIER INVOICES, WHICH IS YOUR TYPICAL PROCESS. 
          IT'S ALL THE INVOICES THAT HAVE BEEN SINCE THE CITY IS ON AND MATCHED AGAINST RECEIVING NPOS. THEN WE HAVE OUR EXPENSE REPORTS OR MORE PCARDS AND EMPLOYEE REIMBURSEMENTS. AD HOC PAYMENTS ARE YOUR NON-TYPICAL ONE-TIME PAYMENT, TYPICALLY REFUNDS AND REIMBURSEMENTS. OR DEBT AND CLAIMS INSURANCE CLAIMS. AND THEN WE HAVE MISCELLANEOUS PAYMENTS, WHICH IS YOUR UTILITY REFUNDS. 
          SO, I'VE TAKEN A SCREENSHOT OF THE REPORT, AND I'LL SHOW IT HERE. IT'S TERRIBLY SMALL. I APOLOGIZE, BUT I'LL BLOW IT UP, HOPEFULLY. NO, NO, IT'S NOT MAGNIFIED. OKAY, SO, THIS IS THE TOTAL BATCH RUN FROM THIS WEEK OF PAYMENTS THAT HAVE BEEN PAID OR GOING OUT THIS WEEK, 3.2 MILLION. 
          THIS IS A NON-TYPICAL AMOUNT BUT WE'RE ALSO REDEFINING WHAT TYPICAL IS, AND WORKDAY WE'VE CHANGED PROCESSES, BUT AT THE END OF THE FISCAL YEAR AND THE BEGINNING OF THE NEXT IS TYPICALLY OUR LARGEST PAYMENT RUNS. THAT'S JUST END OF THE CONSTRUCTION CYCLE, BEGINNING OF THE NEW CONTRACTS. FIRST COUPLE, THE FIRST, THE LAST COUPLE OF SEPTEMBER AND THE FIRST OF OCTOBER ARE ALL PRETTY MUCH OUR BIGGEST OF THE YEAR. YEAH, 3.2 MILLION IS NOT A TYPICAL CHECK RUN. 
          YOU, YOU WOULD SEE THIS TO BE ABOUT 1.2 TO 1.5 MILLION, BUT BECAUSE IT'S THE END OF THE YEAR. SO, WHAT DOES WE'RE REVIEWING THAT MEAN? IF THAT NUMBER'S STILL LEGIT, THAT 1.2 NUMBER, OR IS IT NO LONGER? YOU, SO, WE'LL GET INTO THAT HERE IN JUST A SECOND, BUT TYPICALLY YOU'RE LOOKING FOR LARGE THINGS, AND I WANT TO GIVE YOU A WAY TO GET MORE DATA OUT OF IT. 
          AND IT BREAKS IT DOWN HERE BY TYPE, SO, HERE'S YOUR AD HOC CHECK IN EMT, EXPENSE CHECK IN, AND DIRECT DEPOSIT, SUPPLIER PAYMENTS CHECK IN EMT. IT'S OUR GOAL TO TRY TO MINIMIZE CHECKS OR COMPLETELY REMOVE CHECKS. CHECKS IS THE BIGGEST AREA OF FRAUD, AND SO, WE TRY TO, WE, WE'VE HAD A COUPLE OF INITIATIVES WHERE WE SENT OUT SERVICE PROVIDERS TO MOVE AWAY FROM CHECKS. THE STATE WENT AWAY COMPLETELY ALMOST, EXCEPT FOR REFUNDS. 
          ALL THEIRS ARE DIRECT DEPOSIT NOW. WE ARE LOOKING AT DOING THE SAME, BUT WE CAN'T, THE STATE LAW DOESN'T ALLOW US TO LEGALLY ENFORCE IT, BUT WE DO STRONGLY ENCOURAGE THE DEPARTMENTS, OR THE VENDORS TO PAY, GET PAID ELECTRONICALLY. ONE AREA THAT WE'VE TRIED IN 2015 WAS TO DO WHAT IS CALLED AN E-PAYABLE, WHICH IS A CREDIT CARD VERSION OF A DIRECT DEPOSIT, WHERE THE CREDIT CARD COMPANY ENROLLS PEOPLE TO BE PAID VIA A ONE-TIME TRANSACTION AMOUNT. 
          WE MAY LOOK AT THAT IN THE FUTURE. JUST TO TRY AND MINIMIZE OUR CHECKS, WE'VE ALSO LOOKED AT POSSIBLY USING ONE-TIME CARDS THAT WE 
          [01:00:01]
WOULD ISSUE FOR THEM TO USE. 
          SO, WE'RE ALWAYS RESEARCHING THE AREAS THAT HAVE THE HIGHEST FRAUD RIGHT NOW IS PHYSICAL CHECKS. THIS IS THIS IS THE SUPPLIER INVOICES, SO, IT GIVES YOU THE NAME OF THE VENDOR, IT GIVES YOU WHAT INVOICE THEY'RE PAYING, AND ALSO WHAT, HOW IT'S RECORDED IN THE WORKDAY SYSTEM. YOU SHOULD BE ABLE TO TYPE IN WORKDAY THIS NUMBER, AND IT'LL BRING UP MORE DATA AND WORKDAY TO TELL YOU WHAT, WHAT THAT IS IF YOU HAD A QUESTION. SO, IF YOU SAW LIKE A HIGH DOLLAR VALUE LIKE THIS ZOL RIGHT HERE, THAT'S PART OF THE FIRE DEPARTMENT, IT WOULD TELL YOU, YOU PUT THAT NUMBER IN, IT WOULD TELL YOU WORKDAY WHAT THAT DOES AND WHAT AND SO, IT MAY BE AT SOME POINT WE CAN COME BACK AND, AND SHOW WORKDAY AND SHOW YOU HOW YOU DO THAT. I DID NOT PREPARE THAT FOR THIS TIME, BUT I WOULD BE MORE OF A LIVE PRESENTATION ON THE USE OF WORKDAY. MARK, IN THE OLD ONE, YOU, YOU USED TO GET THE FUND THAT IT WAS COMING OUT, GET THE FUND NUMBER? THIS IS A WORKDAY CREATED REPORT. WE CAN WORK TO ADD THE FUND NUMBER TO IT OR A COST CENTER, SO, YOU KNOW WHERE IT'S COMING FROM. 
          THIS IS THE EXPENSE REPORTS. 
          YOU'LL NOTICE ON HERE, THERE IS A LOT OF ZEROS. AND THAT'S BECAUSE THEY'RE PAID BY THE P-CARD. THIS IS ONLY SHOWING THE REIMBURSEMENTS, WHICH IS OUTGOING. WE ARE WORKING TO EITHER ADD THE P-CARD CHARGE OR TO REMOVE THE ZEROS. WILL YOU SAY THAT AGAIN? BECAUSE I, WHEN I LOOKED AT THAT, IT WAS LIKE, OKAY, THERE'S A LOT OF ZEROS. WHAT, SO, WHAT DOES THAT MEAN? IT'S THE P, IT'S BEEN PAID BY A P-CARD. SO, THIS EXPENSE REPORT HAS THIS CHARGE, WHICH IS ZERO, BECAUSE IT WAS PAID BY THE P-CARD. AND, AND THIS IS ONLY SHOWING OUTGOING CASH. 
          OKAY, SO, THOSE WERE REIMBURSEMENTS. 
          SO, THIS ONE IS A REIMBURSEMENT TO AN EMPLOYEE, WHICH HE PAID OUT OF HIS OWN POCKET, AND WE'RE REIMBURSING HIM. 
          THAT'S WHAT IT HAS ABOUT THERE. 
          IN ITS CORRECT CREATION, WHICH IS THE WORK AND DELIVERY REPORT, THIS IS AN HONOR, AN HONOR ROADMAP TO FIX AND IMPROVE AT SOME POINT IN THE FUTURE WHEN WE GET IN TO HAVE TIME TO WORK ON OUR REPORTING. THEN THE LAST ONE IS OUR AD HOC, WHICH IS OUR NON-TYPICAL PAYMENTS, USUALLY INITIATED BY THE BANK OR THROUGH A REFUND PROCESS. YOU CAN SEE ON THIS ONE AS A LOT OF REFUNDS, WE ARE WORKING WITH STAFF TO PUT A CLARIFIER ON WHAT TYPE OF REFUND IT IS, INSTEAD OF JUST SAYING REFUND REQUEST. 
          IT'S TO, THESE TWO RIGHT HERE ARE BUILDING PERMITS, REFUNDS. 
          IN OTHER AREAS, THEY PUT AMBULANCE REFUND. 
          THAT'S WHAT WE WANT TO SEE IS LIKE WHAT TYPE OF REFUND IT IS. SO, WE KNOW WHAT IT IS. THEN YOU HAVE THE INCENTIVES AND OTHER TYPES OF REFUNDS, REIMBURSEMENTS FOR CURB AND GUTTER, ANY TYPE THAT INCENTIVE PROGRAMS THAT WE'RE GIVING TO THE PUBLIC SHOW UP HERE ON THE AD HOC, IT IS A NON-TYPICAL PAYMENT. 
          TYPICALLY, IT MEANS IT'S A ONE-OFF FOR THAT VENDOR. WE DON'T CREATE VENDORS THAT WE, WE DON'T CREATE A VENDOR RECORD OR A VENDOR PROFILE FOR A, A VENDOR WE ONLY INTEND TO SEND ONE PAYMENT. IT COMES AS AN AD HOC. WHAT ARE THE REQUIREMENTS ALSO TO BE IN THIS AD HOC IS IT WHETHER OR NOT IT'S TEN NINETY-NINE LEVEL. 
          IF IT'S A TEN NINETY-NINE EVENT, THEN WE DO HAVE TO CREATE A SUPPLIER SO, THAT WE CAN REPORT ON THAT. 
          SO, ANY, ANY QUESTIONS ON THE RISK REPORTS BEFORE I GET INTO A LITTLE MORE DETAILS? OKAY, THE PURPOSE HERE IS TO HAVE A GENERAL APPROVAL. 
          IT'S NOT AN EXPECTATION, EXPECTATION THAT YOU WOULD KNOW EVERYTHING ABOUT THAT PAYMENT. THAT'S ALREADY BEEN DONE BEFORE IT GETS TO YOU. 
          HOWEVER, THERE IS A SNIFF TEST, WHICH KIND OF AN AUDITING TERM THAT WE USED TO USE BACK IN THE DAY WHEN AUDITING, YOU COULD, YOU'RE TRYING TO, YOU'RE TRYING TO DETERMINE WHETHER DOES IT SMELL FUNNY, MEANING IS THERE SOMETHING THAT FEELS WRONG WITH THIS? SO, SOME OF THE QUESTIONS YOU WOULD ASK YOURSELF, DOES THIS MAKE SENSE? AND DOES THE VENDOR MAKE SENSE? DOES THE AMOUNT LOOK UNUSUAL? IS THERE ANYTHING POLITICAL OR OPERATIONALLY SENSITIVE? DO I RECOGNIZE ITS PURPOSE? DOES ANYTHING SEEM OR LOOK WRONG? THOSE ARE THE QUESTIONS THAT YOU WOULD ASK YOURSELF. 
          AGAIN, WE'RE NOT ASKING YOU TO KNOW SPECIFICALLY WHY THAT PAYMENT'S BEING MADE. THERE'S JUST NO WAY. THAT'S WHY YOU HAVE FULL-TIME PROFESSIONALS TO DO THAT. HOWEVER, IT IS 
          [01:05:01]
COMING TO YOU BY STATE LAW, AND THESE ARE THINGS THAT YOU COULD ASK YOURSELF WHEN YOU'RE LOOKING AT IT, BECAUSE WE DO WANT YOU TO FEEL COMFORTABLE ABOUT WHAT INFORMATION YOU'RE GETTING. 
          BUT IF I'M LOOKING FOR PURPOSE, I'D BE ASKING NOT ONLY TO WHOM DID IT GO, BUT WHY DID IT GO, WHAT SERVICES THEY PROVIDE, RIGHT? SO, THAT'S WHY WE ARE PROVIDING THIS TO YOU, THE OPPORTUNITY TO LOOK WITHIN WORKDAY. YOU COULD LOOK IT UP YOURSELF, OR YOU CAN EMAIL ME OR AP, AND WE'LL REPLY BACK TO YOU. 
          PAT. THANK YOU. THE ONES THAT WOULD BE THAT YOU CAN'T REALLY LOOK UP IS THE REFUNDS, AND THAT'S WHY WE'RE TRYING TO PUT THAT MINIMAL LINE ON THERE SO, YOU KNOW THAT IT'S A, A REFUND OR A REIMBURSEMENT. 
          LIKE UNDER THE AD HOC PAYMENT. 
          THAT'S CORRECT. AND THE EXPENSE REPORT SHOULD HAVE A DESCRIPTION OF WHAT'S THE PAIN, TAX INVOLVED. SO, LET'S REVIEW. 
          HOW DO YOU FEEL ABOUT THE PROCESS? IS THERE ANYTHING YOU LIKE, DON'T LIKE ABOUT TIMING DATA CONTENT? HOW CAN WE IMPROVE THE PROCESS FROM YOUR PERSPECTIVE? SO, YOU SAID WE CAN'T, RIGHT NOW WE CAN'T GO IN AND PUT THAT NUMBER IN. 
          NO, YOU CAN. 
          BUT I DON'T KNOW HOW. THAT'S THE THING. THAT'S, THAT'S IN THE PROCESS SOMEWHERE TO COME BACK. WE COULD COME BACK AND DO AN OVERALL, GENERAL OVERALL WORKDAY TRAINING. IT WAS, IT'S A MUCH LARGER TASK THAN JUST WHAT WE HAVE ASSIGNED TODAY. TO COME AND DO A TRAIN HOUR THING, BECAUSE THAT'S THE EXPECTATION. 
          I DON'T THINK IT'S THE EXPECTATION, IT'S THE, YOU KNOW, THE WAY THAT YOU, IT'S REALLY, WE'RE GIVING THE DATA THAT YOU CAN LOOK UP YOURSELF IF YOU CHOOSE TO, OR YOU CAN ASK US. 
          BUT WE'RE NOT ASKING YOU TO RUN IT DOWN. JUST SNIFF IT. 
          YEAH. AND IF IT DOESN'T SMELL RIGHT, THEN YOU JUST TURN IT BACK OVER. YOU DON'T HAVE TO GO FIGURE. 
          LIKE WHEN YOU GET ONE OF THOSE PHISHING EMAILS AND YOU SEND IT TO IT. THAT'S CORRECT. SO, WHAT DAY OF THE WEEK DOES THE SETTLEMENT RUN COME OUT? TYPICALLY, IT'S MONDAY. 
          MONDAY. OKAY. TYPICALLY. BUT THERE'S HOLIDAYS AND THERE'S OTHER FACTORS, SO, IT COULD BE TUESDAY. IT SHOULD ALMOST NEVER BE WEDNESDAY, BUT IT'S A POSSIBILITY. AND WHEN WOULD YOU HAVE TO HAVE A SO, THE IDEA, THE IDEA IS THAT WE, WE DON'T INITIATE THESE TILL FRIDAY. SO, YOU HAVE UNTIL FRIDAY TO RESPOND BACK WITH ANY QUESTIONS, COMMENTS, OR CONCERNS. THURSDAY, FRIDAY THEY GO OUT LIKE MID-MORNING. 
          ONLY ONE TIME I'VE EVER HAD A WEIRD THING COME UP WHERE I HAD TO CALL AND ASK SOMEBODY ABOUT IT. I THINK I THINK LIKE NINE YEARS AGO I ASKED ONE TIME. IT'S A HANDFUL OF TIMES THAT WE'VE PULLED UP PAYMENT. 
          IT'S VERY, PRETTY RARE, BUT IT DOES HAPPEN. JUST BECAUSE WE ASK QUESTIONS DOESN'T MEAN YOU'RE GOING TO PULL THE PAYMENT. THAT'S CORRECT. YEAH, I MEAN, RIGHT. 
          OKAY. THANK YOU. THANKS. HOW'D YOU DO? I WAS TRYING A LITTLE LONG. SO, DOES ONE COUNCIL MEMBER'S QUESTION HOLD UP A PAYMENT? IT DOES. YEAH. ONE QUESTION? ONE, I DON'T, ONE STOP. ONE STOP. YEAH. 
          WELL, THIS DOESN'T FEEL RIGHT TO ME. 
          BUT IF YOU'RE JUST SAYING, YOU'RE SAYING, HEY, HELP ME UNDERSTAND THIS, I'M NOT QUESTIONING IT. I'M NOT REQUESTING YOU STOP PAYMENT, BUT I'M JUST CURIOUS ABOUT IT. THAT'S NOT GOING TO STOP IT. SO, THE ONE TIME THAT I EXPERIENCED THIS WAS A COUNSELOR ASKED, WHAT IS THIS FOR? I RESPONDED BACK. THEY SAID, THAT DOESN'T MAKE ME FEEL COMFORTABLE ABOUT IT. CAN WE TALK ABOUT THAT? THAT WE HOLD. 
          OKAY. GREAT. THANK YOU. 
          [Human Resources ]
DIRECTOR JONES IF YOU'RE TO TALK ABOUT AN INSURANCE PLAN, IT'S PROBABLY BEEN LINGER LONGER, I GUESS IS HOW WE WOULD DESCRIBE IT. AND, AND HE CAN GIVE US THE RUNDOWN ON IT. 
          YES. AT SOME POINT IN THE CITY. HISTORY. WE CREATED A 457 PLAN WITH THE CAPITAL GROUP, AMERICAN FUNDS. IT HASN'T BEEN ANYTHING WE'VE ACTIVELY USED AS FAR AS I CAN TELL FOR A VERY LONG TIME. WE BECAME AWARE OF IT IN JUNE OF 25 BECAUSE WE RECEIVED SOME CORRESPONDENCE FROM THEM AND STARTED DIGGING TO FIND OUT WHAT IT WAS ABOUT. WE FOUND OUT AT THAT TIME THERE WERE THREE PARTICIPANTS THAT STILL HAD ANY FUNDS IN THE PLAN, TWO RETIREES, ONE CURRENT EMPLOYEE. THE TWO RETIREES HAVE 
          [01:10:02]
SINCE MOVED THEIR MONEY OUT OF THE PLAN. THE ONE CURRENT EMPLOYEE INTENDS TO MOVE THEIR MONEY OUT OF THE PLAN NO LATER THAN JANUARY 27, AT WHICH POINT WE WILL HAVE NO FUNDS, NO PARTICIPANTS, AND NO ONGOING NEED FOR THIS PLAN. SO, IN ORDER TO GET RID OF A PLAN LIKE THIS, WE SEND THEM A LETTER, A TERMINATION LETTER THAT JUST SAYS WANT TO TERMINATE THIS PLAN. 
          NEITHER THEY NOR WE COULD FIND ANY PLAN DOCUMENTS FOR THE PLAN. SO, WE WOULD LIKE TO TERMINATE THE PLAN, AND I'M BRINGING IT TODAY AS SORT OF A DISCUSSION ITEM TO ANSWER ANY QUESTIONS, AND ON THURSDAY I'LL BE BRINGING IT AS AN ACTION ITEM FOR COUNCIL APPROVAL. IF WE INITIATED A NEW RETIREMENT PLAN THAT EMPLOYEES COULD CONTRIBUTE TO, WE WOULD ASK COUNCIL'S APPROVAL, SO, I THINK THE INVERSE SHOULD BE THE SAME, AND BRINGING IT FOR COUNCIL'S APPROVAL TO CANCEL THIS PLAN. AND WE THOUGHT IT MIGHT BE JUST A GOOD IDEA TO HAVE A LITTLE WORK SESSION ON IT INSTEAD OF HAVING THAT KIND OF THROWN ON YOU DURING YOUR REGULAR WORK SESSION. SO, IS THIS COMPARABLE TO, LIKE, THE PERCY CHOICE PLAN KIND OF A THING? IS IT LIKE THAT? IT IS. IT'S LIKE NATIONWIDE PERCY CHOICE AND CORBRIDGE. IT'S JUST AN OLDER PLAN THAT PROBABLY GOT STARTED IN THE NINETEEN EIGHTIES OR NINETIES, AND EMPLOYEES MADE CONTRIBUTIONS OVER TIME, AND AT SOME POINT, THE CITY DECIDED NOT TO CONTINUE ALLOWING ONGOING CONTRIBUTIONS, AND EITHER ANYONE WHO HAD CONTRIBUTIONS PULLED IT OUT, ROLLED IT OVER, EXCEPT FOR THESE THREE INDIVIDUALS, AND NOW THERE'S ONLY ONE LEFT THAT HAS ANY FUNDS. SO, IS THERE A SIMILAR PRODUCT OR A PRODUCT THAT KIND OF DOES WHAT THIS ONE DID? WE ALREADY HAVE NATIONWIDE, PERCY CHOICE AND CORBRIDGE ARE ALL CHOICE LANDS THAT ARE CURRENT, CURRENTLY AVAILABLE TO EMPLOYEES AND HAVE CURRENT PLAN DOCUMENTS, CURRENT, THERE ARE A LOT OF RULES, IRS RULES AND LAW CHANGES HAPPENED IN THE EARLY TWO THOUSANDS THAT PLANS SHOULD BE INCORPORATED AND CHANGES TO THOSE PLAN DOCUMENTS THAT HAVE HAPPENED. 
          JUST A QUICK QUESTION, SO, YOU SAID YOU LEARNED ABOUT THIS ABOUT A YEAR AGO? YEAH. DO YOU THINK THAT THERE'S ANY OTHERS OUT THERE THAT ARE LIKE IT? IT'S POSSIBLE. WE, WE'VE BEEN CURIOUS ABOUT THAT. OKAY. HOW WAS, HOW DID, HOW DID THIS, HOW DID WE LEARN ABOUT IT? WE RECEIVED A PIECE OF MAIL CORRESPONDENCE, AND WE'RE LIKE, WHAT IS THIS? AND AS WE STARTED TO DIG AND MAKE PHONE CALLS, IT TOOK QUITE A WHILE TO EVEN FIND OUT WHAT IT WAS, AND THEN WE HAD THEM GIVE US ACCESS SO, WE COULD SEE WHAT, HOW MANY PARTICIPANTS THERE WERE, AND ONCE I SAW THERE WAS ONLY THREE PARTICIPANTS, AND AS FAR AS I KNOW, AND MARJORIE STILL HERE IN FINANCE, ANY OF THE EXISTING FINANCE STAFF DOESN'T HAVE ANY KNOWLEDGE ABOUT THIS PLAN. 
          IT'S JUST AN OLD PLAN THAT NEVER GOT TERMINATED. WE WENT THROUGH ABOUT SIX YEARS AGO AND STARTED CLEANING UP SOME OF OUR PLANS. WE HAD MORE THAN A FEW. SO, WHATEVER WE COME ACROSS THESE, WE'RE GOING TO TRY TO CLEAN THEM UP. IF YOU LEARN OF ANOTHER ONE SOMEWHERE, WE'LL TRY TO CLEAN THAT UP. 
          ANY OTHER QUESTIONS? SO, I'LL BE BRINGING IT AS AN ACTION ON THURSDAY NIGHT. I'M ASKING YOU TO LOOK THROUGH THE CANCELLATION OF THIS PLAN. PROBABLY WON'T ACTUALLY SEND THE CANCELLATION LETTER UNTIL WE'VE VERIFIED THAT THAT LAST EMPLOYEE FUNDS ARE REMOVED, WHICH MAY BE IN JANUARY, BUT I THOUGHT SINCE WE'RE AT A POINT RIGHT NOW WHERE WE'RE ALMOST READY TO DO IT, I'D GIVE PEOPLE THE TAKING CARE OF NOW. JUST A QUESTION, MAYOR, IS THIS TYPE OF AN ACTION, IS THAT SOMETHING WE COULD DO IN THIS SETTING, OR DOES IT NEED TO GO INTO COUNCIL MEETINGS? WE TYPICALLY JUST DON'T TRY AND TAKE ACTION DURING THIS MEETING. 
          OFTENTIMES IT'S THE PLACE TO HAVE ANY QUESTIONS. I MEAN, I THOUGHT THIS WAS PRETTY STRAIGHTFORWARD, BUT THERE COULD HAVE BEEN A LOT OF QUESTIONS SURROUNDING THIS ONE, SO, WE JUST THOUGHT IT WOULD BE BETTER TO SORT OF MOVE IT AROUND, AND IT'LL BE IT'S NOT ON, I CAN'T REMEMBER IF WE ADDED ITS CONSENT ON THURSDAY. IT'S ON REGULAR, SO, THERE, IT'LL BE A, JUST A SHORT PRESENTATION, AND WE'LL SET AS ADDRESSED IN COUNCIL. WE DID ASK FOR, I MEAN, THE NEXT AGENDA ITEM, WE DID ASK FOR EXCEPTION TO TAKE SOME ACTION TONIGHT, BUT YES. YES. SO, IN THIS CASE, WILL THE MOTION BE PUT FORWARD IN A WAY THAT'S THE CANCELLATION TAKES EFFECT WHEN THE LAST PERSON IS OFF, OR DO WE SET A DATE, OR WHAT DO WE DO? THAT'S A GOOD QUESTION. I THINK THE AUTHORIZATION TO CANCEL IS THE MAIN THING, AND MAYBE WE COULD BE A LITTLE BIT MORE LIKE AUTHORIZATION FOR, I GUESS YOU USUALLY AUTHORIZE IN THE NARRATIVE, TAKE THE ACTION, DELEGATE, BUT TO CANCEL THIS PLAN AT SOMETHING LIKE AT A TIME THAT MAKES SENSE FOR THE PARTICIPANTS IN THE PLAN. I WOULD LIKE TO, IF WE SAID NO LATER THAN JANUARY 2027, THERE'S A POSSIBILITY IT LEADS OVER INTO FEBRUARY, AND THEN, AND THEN, YOU KNOW, WE HAVE TO COME BACK FOR AN AMENDMENT, SO, A LITTLE BIT MORE OPEN-ENDED WOULD BE GOOD. SOMETHING TO THE EFFECT WHEN THERE ARE NO PARTICIPANTS LEFT, THE PROGRAM CANCELS. 
          YEAH, SOMETHING 
          [01:15:02]
ALONG THOSE LINES. OKAY. THANK YOU. I JUST ALSO MENTIONED THAT OUR ATTORNEY EXECUTIVE IS OUT FOR THE DAY, BUT WE DO HAVE OUR ASSISTANT CITY ATTORNEY WITH US SO, WE WILL NOW BE MOVING INTO AN EXECUTIVE SESSION, IF YOU WOULDN'T MIND LEADING, LIKE, MR. COUNCIL MEMBER FRANCIS FOR THAT, AND THEN WE WILL COME BACK INTO OUR MEETING. I MOVE COUNCIL MOVE INTO AN EXECUTIVE SESSION CALLED PURSUANT TO THE IDAHO CODE SECTION SEVEN FOUR DASH TWO ZERO SIX ONE J AND SEVEN FOUR DASH TWO ZERO SIX A ONE A TO CONSIDER A LABOR CONTRACT MATTER. COUNCIL WILL RECONVENE AFTER THE EXECUTIVE SESSION. 
          SECOND. ZIEL-DINGMAN. YES. 
          FREEMAN. FRANCIS. LEE. 
          LARSON. THANK YOU, MOTION CARRIES. THANKS. WE ARE BACK IN OPEN SESSION. WE HAD OUR 
          [Human Resources ]
EXECUTIVE SESSION, AND NOW WE ARE READY, IF COUNCIL MEMBER FREEMAN IS READY TO MAKE THAT MOTION. OKAY. I WOULD MOVE TO APPROVE THE MLEU BETWEEN THE CITY OF IDAHO FALLS AND LOCAL 1565 CONCERNING THE SICK LEAVE PAYOUT AVAILABILITY TO ELIGIBLE UNION, LOCAL UNION 1565 EMPLOYEES AND GIVE THE MAYOR AUTHORIZATION TO EXECUTE THE NECESSARY DOCUMENT. BACK UP. LEE. YES. FREEMAN. YES. 
          FRANCIS. AYE. FREEMAN. YES. 
          LARSON. YES. THANK YOU, MOTION CARRIES. ARE THERE ANY 
          [Announcements]
ANNOUNCEMENTS? WE'LL MAYBE GO AROUND THE ONE MORE TIME THIS WAY. IF YOU HAVE ANY ANNOUNCEMENTS TO, TO BRING UP, GO ANNOUNCE IT TO ME, THANK YOU. OKAY, THE ZOO, THIS IS THE LAST WEEKEND THIS WILL BE OPEN, AND THEN NEXT WEEKEND IS BOO AT THE ZOO. THAT IS THE ICE RINK IS NOW AN ICE RINK. IT HAS BEEN CONVERTED. SO, I DIDN'T REALIZE THAT WE OFFERED ICE SKATING LESSONS, ACTUALLY. I, I THOUGHT THAT THOSE WERE DONE PRIVATELY, SO, THAT'S EXCITING. LOTS HAPPENING. THE, I WENT TO TEMPLE VIEW REALLY QUICKLY, AND THEN WE'LL BE ADJOURNED, BUT I WENT TO TEMPLE VIEW ELEMENTARY LAST WEEK AND DID A READING OF, YOU KNOW, WHAT CITIES DO, AND I SAID, WHAT DO YOU THINK CITIES DO TO HELP SO, THAT WE DON'T, WE DON'T HAVE SLICK ROADS? AND THIRD GRADERS, SO, EIGHT-YEAR-OLDS, PLOW, SALT ON THE ROAD. THEY TALKED ABOUT SHOVELING. OF COURSE, THERE WAS SOMETHING, AND THEN ONE LITTLE GIRL SAID, AND WE PUT THOSE LITTLE ROCKS AND OIL DOWN ON THE ROAD TO KEEP US FROM SLIDING. AND I THOUGHT, GOOD FOR YOU, EIGHT-YEAR-OLD. LIKE, YOU'VE LIVED HERE, AND YOU UNDERSTAND ONE OF THE MAJOR PURPOSES OF CHANGING THE ENVIRONMENT. 
          SO, ANYWAY, WE PUT LITTLE ROCKS AND OIL DOWN ON THE ROAD. SO, ANYWAY. 
          YEP. JUST A HIGHLIGHT OF MY WEEK TODAY. THAT WAS, THAT WAS PART OF HER. SO, ANYWAY, GOOD NEWS. LOTS OF GREAT THINGS HAPPENING IN THE CITY. COUNCIL MEMBER FREEMAN. I PLAN TO BE AT FARMER'S MARKET THIS WEEKEND. 
          YEP. IF THE PUBLIC WOULD LIKE TO COME ASK A QUESTION. 
          GREAT. THANK YOU. COUNCIL MEMBER FREEMAN. I AM DOING THE MAYOR'S WALKING CHALLENGE, AND SO, I WILL BE REACHING OUT TO DEPARTMENTS. I'LL BE REACHING OUT COUNCIL MEMBERS, YOU HAVE TO GET TEN THOUSAND STEPS A DAY, WHICH IS NOT A BIG DEAL FOR ME BECAUSE I DO IT IN THE MORNING, BUT I'M COMPETITIVE THIS WAY, AND THERE'S A FEW MAYORS THAT ARE AHEAD OF ME RIGHT NOW, SO, IT'S A MAYOR'S CHALLENGE. 
          THAT'S RIGHT, LAST COMPETITION IN MY LIFETIME. TOTAL NUMBER OF STEPS? TOTAL NUMBER, IT, YOU'RE SUPPOSED TO GET TEN THOUSAND A DAY, THAT'S THE GOAL, RIGHT? BUT I'M PRETTY SURE SOME OF THESE MAYORS ARE TRAINING FOR A MARATHON. SO, WE'RE GOING TO, I'LL REACH OUT TO THE DEPARTMENTS, I'LL REACH OUT TO COUNCIL MEMBERS, WE DO ALREADY HAVE ONE WITH THE I BELIEVE THEY'RE CALLED THE WHITE STICK COMMUNITY, AND IT'S MEMBERS OF THE BLIND COMMUNITY. WE'RE GOING TO DO A WALK AND A PROCLAMATION THING SATURDAY WITH THEM, SO, I'LL BE REACHING OUT, WE CAN GET LOTS OF STEPS IN AROUND OUR BEAUTIFUL RIVER WALK. SO, DO YOU, ARE YOU GETTING PLEDGES TO DO THIS, OR? NO, BUT IT'S ON AN APP THAT, THAT EVERYBODY HAS SIGNED UP FOR, AND THEN IT LISTS OKAY. 
          NUMBER ONE, NUMBER TWO, NUMBER THREE, BY NAME AND LOCATION. 
          YOU MEAN IF YOU DON'T GET TEN THOUSAND STEPS IN, 
          [01:20:02]
YOU DON'T GET A THOUSAND AT ALL, OR DOES THAT? NO, THAT'S THE GOAL, ACTUALLY. 
          TEN THOUSAND STEPS, IF YOU GET TEN, THE AVERAGE OF TEN THOUSAND STEPS A DAY, THE CITY WILL GET A THOUSAND DOLLARS. IF YOU GET FIVE THOUSAND STEPS A DAY, YOUR CITY WILL GET FIVE HUNDRED DOLLARS. 
          SO, I THOUGHT, WE'LL GET, WE SHOULD AT LEAST GET A THOUSAND DOLLARS, BUT NOW IT'S KIND OF A COMPETITION. AND HOW ARE THEY TRACKING YOUR STEPS? ON MY, YOU HAVE TO HAVE A FITNESS OR A GARMIN WATCH, AND YOU HAVE TO UPLOAD IT EVERY NIGHT. 
          OKAY, WE ARE ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.