{ "file": "/tmp/tmpozsjmd08/0cdffea4-ffc7-46bc-bc6a-f7cf02d08630.mkv", "segments": [ { "speaker": "SPEAKER_10", "start": 1019.965, "end": 1020.485, "text": "Let's go." }, { "speaker": "SPEAKER_10", "start": 1020.885, "end": 1021.665, "text": "Roll call, please." }, { "speaker": "SPEAKER_19", "start": 1023.485, "end": 1025.705, "text": "Thank you, Chair. To confirm quorum, Councillor Jameson," }, { "speaker": "SPEAKER_08", "start": 1025.905, "end": 1026.245, "text": "Present." }, { "speaker": "SPEAKER_19", "start": 1027.605, "end": 1028.345, "text": "Councilor Clark," }, { "speaker": "SPEAKER_19", "start": 1029.565, "end": 1030.885, "text": "Councilor Pantozopoulos," }, { "speaker": "SPEAKER_19", "start": 1031.785, "end": 1032.765, "text": "Public Member Kim," }, { "speaker": "SPEAKER_19", "start": 1033.545, "end": 1034.565, "text": "Public Member Niker," }, { "speaker": "SPEAKER_19", "start": 1036.465, "end": 1039.865, "text": "Public Member McDonald, Mayor Farkas," }, { "speaker": "SPEAKER_19", "start": 1041.265, "end": 1043.765, "text": "Councilor Johnson, I see you online. Are you with us today?" }, { "speaker": "SPEAKER_01", "start": 1046.865, "end": 1048.105, "text": "Uh yeah, for now." }, { "speaker": "SPEAKER_19", "start": 1048.385, "end": 1052.465, "text": "Thank you. And do we have any other counselors online wishing to participate?" }, { "speaker": "SPEAKER_19", "start": 1055.485, "end": 1056.745, "text": "And Chair Yaness." }, { "speaker": "SPEAKER_10", "start": 1057.085, "end": 1057.445, "text": "Here." }, { "speaker": "SPEAKER_19", "start": 1057.605, "end": 1058.405, "text": "Thank you. We have Quorum." }, { "speaker": "SPEAKER_10", "start": 1058.585, "end": 1059.185, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 1059.665, "end": 1078.165, "text": "Oki, Dada Nastada, Tance. Indigenous people have their own names for this area that have been in use long before settlers named the place Calgary. In the Blackfoot foot language, it is called Mokinsis. The Ithaca Nakota Wiscotabe First Nations refer to this place as Wispis Wispa Oyade," }, { "speaker": "SPEAKER_10", "start": 1078.485, "end": 1080.045, "text": "and the people of Tutsina" }, { "speaker": "SPEAKER_10", "start": 1080.245, "end": 1081.845, "text": "Nation call it Guts." }, { "speaker": "SPEAKER_10", "start": 1082.065, "end": 1083.805, "text": "The Meiti call the Calgary area" }, { "speaker": "SPEAKER_10", "start": 1083.945, "end": 1085.885, "text": "Otis Kana Kanane." }, { "speaker": "SPEAKER_10", "start": 1086.625, "end": 1092.485, "text": "We appreciate and acknowledge that we are gathered on ancestral and traditional territory of the Blackfoot Nations," }, { "speaker": "SPEAKER_10", "start": 1092.745, "end": 1094.085, "text": "Sitsitka, Pikani," }, { "speaker": "SPEAKER_10", "start": 1094.345, "end": 1101.785, "text": "Guy Nai First Nations, Itha, Nakota, Wiskatabe First Nations, comprised of Chiniki, Bearspah, Goodstone First Nations, and Tutsina First Nations." }, { "speaker": "SPEAKER_10", "start": 1102.145, "end": 1105.165, "text": "The city of Calgary is also homeland to the historic" }, { "speaker": "SPEAKER_10", "start": 1105.425, "end": 1106.885, "text": "Northwest Métis and" }, { "speaker": "SPEAKER_10", "start": 1107.345, "end": 1108.565, "text": "Opa Misquah," }, { "speaker": "SPEAKER_10", "start": 1109.305, "end": 1112.485, "text": "Métis government, Métis Nation, Battle River Territory." }, { "speaker": "SPEAKER_10", "start": 1114.125, "end": 1116.145, "text": "Métis District 5 and Métis District" }, { "speaker": "SPEAKER_10", "start": 1116.625, "end": 1122.545, "text": "6. We acknowledge and give gratitude to the many First Nations and Inuit who live here and call Calgary home." }, { "speaker": "SPEAKER_10", "start": 1123.065, "end": 1124.145, "text": "Today" }, { "speaker": "SPEAKER_10", "start": 1125.025, "end": 1127.625, "text": "is going to be a juggle of committees." }, { "speaker": "SPEAKER_10", "start": 1127.905, "end": 1131.945, "text": "So just so everyone knows, we will be going straight through till 1 p.m." }, { "speaker": "SPEAKER_10", "start": 1132.165, "end": 1136.365, "text": "We will take our lunch break while Intergovernmental Affairs Committee begins." }, { "speaker": "SPEAKER_10", "start": 1136.625, "end": 1137.785, "text": "We will then," }, { "speaker": "SPEAKER_10", "start": 1138.005, "end": 1142.445, "text": "depending on our agenda, hopefully we'll have just in camera left, be able to conclude." }, { "speaker": "SPEAKER_10", "start": 1142.665, "end": 1143.525, "text": "Restart out" }, { "speaker": "SPEAKER_10", "start": 1143.685, "end": 1146.625, "text": "uh at 2 p.m. But it is all" }, { "speaker": "SPEAKER_10", "start": 1150.125, "end": 1150.525, "text": "Josephine." }, { "speaker": "SPEAKER_10", "start": 1151.865, "end": 1152.305, "text": "Uh" }, { "speaker": "SPEAKER_10", "start": 1153.145, "end": 1164.805, "text": "it is all up in the air, so we may have to take a two hour break uh and re resume after intergovernmental affairs concludes. So just know we go straight to 1 p.m. and the choose your adventure begins." }, { "speaker": "SPEAKER_19", "start": 1164.965, "end": 1181.185, "text": "So Councillor Wynus, in order to make that official, we do have a motion up on the screen that committee modify the lunch recess to begin at 1 p.m. and also modify the lunch or sorry, small typo, uh modify the lunch recess to end at the call of the chair. Uh so if we could get unanimous consent from committee, uh then that's good to go." }, { "speaker": "SPEAKER_10", "start": 1181.445, "end": 1182.245, "text": "All in favor?" }, { "speaker": "SPEAKER_10", "start": 1183.665, "end": 1184.745, "text": "Uh any opposed?" }, { "speaker": "SPEAKER_10", "start": 1184.945, "end": 1186.245, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_19", "start": 1186.245, "end": 1186.705, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 1186.985, "end": 1188.125, "text": "Thank you very much." }, { "speaker": "SPEAKER_10", "start": 1188.525, "end": 1190.765, "text": "All right, that gets us now to" }, { "speaker": "SPEAKER_10", "start": 1191.405, "end": 1195.545, "text": "Uh confirmation of the agenda. Are there any changes?" }, { "speaker": "SPEAKER_10", "start": 1196.705, "end": 1197.605, "text": "Seeing none." }, { "speaker": "SPEAKER_10", "start": 1198.185, "end": 1199.185, "text": "Can I get a mover?" }, { "speaker": "SPEAKER_10", "start": 1200.005, "end": 1200.845, "text": "Member Karen Kim." }, { "speaker": "SPEAKER_10", "start": 1202.665, "end": 1203.445, "text": "All in favor?" }, { "speaker": "SPEAKER_10", "start": 1205.485, "end": 1207.045, "text": "Motions carried unanimously." }, { "speaker": "SPEAKER_10", "start": 1207.925, "end": 1210.845, "text": "Minutes. Sorry, I'm a little behind on the minutes." }, { "speaker": "SPEAKER_10", "start": 1211.385, "end": 1214.285, "text": "Can I get a mover for the minutes? Counselor Jameson." }, { "speaker": "SPEAKER_10", "start": 1217.665, "end": 1218.645, "text": "Okay. All in favor?" }, { "speaker": "SPEAKER_10", "start": 1220.665, "end": 1221.665, "text": "Motions carried." }, { "speaker": "SPEAKER_10", "start": 1222.365, "end": 1225.305, "text": "Okay, let's jump now to" }, { "speaker": "SPEAKER_10", "start": 1225.585, "end": 1226.565, "text": "7.2" }, { "speaker": "SPEAKER_10", "start": 1227.705, "end": 1230.305, "text": "2026 mid year principal corporate risk report." }, { "speaker": "SPEAKER_10", "start": 1230.505, "end": 1231.545, "text": "Uh please come on down." }, { "speaker": "SPEAKER_18", "start": 1254.905, "end": 1258.265, "text": "Good morning, Chair and members of Audit Committee." }, { "speaker": "SPEAKER_18", "start": 1259.005, "end": 1269.325, "text": "So, my team and I are here today to present the mid year principal corporate risk report, which identifies the top corporate risks facing the city and the strategies underway to manage them." }, { "speaker": "SPEAKER_18", "start": 1271.145, "end": 1279.585, "text": "Risks are defined as those that have the highest potential to impact the city's ability to achieve its results and deliver services." }, { "speaker": "SPEAKER_18", "start": 1279.965, "end": 1292.965, "text": "As you may recall from the year-end principal corporate risk report presented in January, the audit committee emphasized the importance of clear risk ownership to promote transparency and accountability." }, { "speaker": "SPEAKER_18", "start": 1293.545, "end": 1302.005, "text": "In response to this direction, action owners have now been identified for each response strategy and are included throughout this report." }, { "speaker": "SPEAKER_18", "start": 1303.325, "end": 1320.045, "text": "While the Enterprise Risk and Issues Management Team owns the risk management framework, they do not own the risks themselves. The framework ensures the right risks are being addressed at the right time by the right people while adhering to transparent and accountable reporting procedures." }, { "speaker": "SPEAKER_18", "start": 1321.105, "end": 1327.405, "text": "Specific action owners ensure risk-response strategies are being implemented and managed appropriately." }, { "speaker": "SPEAKER_18", "start": 1328.445, "end": 1368.165, "text": "In a minute, Manager of Enterprise Risk Management Sajan Shugani will walk us through a more detailed update on the report, and my executive leadership team and I are happy to answer any questions that you may have at the end of this presentation. But before we begin, I'd like to outline the simple recommendation for today. Next slide, please. So today's recommendation is that audit committee receive this report and presentation for information and the corporate record, and that the closed meeting discussions and attachments three and five remain confidential. We ask for this confidentiality because releasing details of certain risk exposure could negatively affect the city's ability to manage these risks and protect service delivery. Next slide, please." }, { "speaker": "SPEAKER_18", "start": 1370.845, "end": 1381.525, "text": "Administration reports on risk to provide transparency and accountability for the management of risks that could affect the achievement of council priorities and organizational objectives." }, { "speaker": "SPEAKER_18", "start": 1381.965, "end": 1393.765, "text": "Understanding and proactively managing risks support the city while recognizing changes in the environment as they occur and allows for adjustment along the way rather than reacting after the fact." }, { "speaker": "SPEAKER_18", "start": 1394.305, "end": 1408.625, "text": "Applying an organization wide lens, risk management supports better decision making. It's not about predicting what comes next, but understanding uncertainties and opportunities so that mitigating actions are meaningful no matter how the future unfolds." }, { "speaker": "SPEAKER_18", "start": 1409.425, "end": 1426.805, "text": "You'll notice in this report there are now eleven principal corporate risks identified rather than ten. Previously, the integration and running of the city's technology systems and cybersecurity risks were reported together with one risk rating under technological disruption." }, { "speaker": "SPEAKER_18", "start": 1427.485, "end": 1458.485, "text": "To better delineate these areas, cyber risk and technological disruption are now two separate standalone risks. As a result of updated definitions with more focus, these risks have been re-rated. In the 2025 year-end report, the merged risks under technological disruption were rated as extensive. Today, technological disruption is rated as high and cyber as extensive. All other principal corporate risk ratings remain unchanged. Next slide, please." }, { "speaker": "SPEAKER_18", "start": 1461.145, "end": 1482.085, "text": "The city's risk environment is dynamic with multiple pressures, drivers, and trends connecting across multiple risks. Looking at the overlaps provides a system level view of the risks and how to better manage them. While not all risks are within our control, many can be influenced if we anticipate what to expect and proactively plan accordingly." }, { "speaker": "SPEAKER_18", "start": 1482.305, "end": 1492.065, "text": "For example, Calgary's population grew by 3.2% year over year in 2025 and 6.2% in 2024." }, { "speaker": "SPEAKER_18", "start": 1492.525, "end": 1516.645, "text": "While slower growth is anticipated ahead, the city may be entering a period where infrastructure, housing, and services need to absorb the long tail effects. Another example of the overlap is how our growing population, affordability, mental health challenge, and substance use are collectively contributing to ongoing social disorder and community safety concerns across citywide public spaces." }, { "speaker": "SPEAKER_18", "start": 1517.265, "end": 1529.645, "text": "The multiple risk owners identified in the risk profile report demonstrate the collective efforts required to address this challenge, and the council approved Safer Together Plan will further strengthen citywide coordination." }, { "speaker": "SPEAKER_18", "start": 1530.705, "end": 1558.765, "text": "Recognizing that factors influencing risk can change quickly and impact multiple areas across our organization, active monitoring to assure appropriate escalation is critically important. This was raised by Audit Committee at our January presentation, and in response to that conversation, we have renamed our risk appetite and tolerance levels from maintain, monitor, and reduce to maintain, escalate, and reduce." }, { "speaker": "SPEAKER_18", "start": 1559.385, "end": 1574.885, "text": "Whereas the progression from maintain to monitor was not clearly distinct as both imply oversight activities, the progression from maintain to escalate reflects active evaluation and intervention when risk thresholds are approached." }, { "speaker": "SPEAKER_18", "start": 1575.805, "end": 1585.465, "text": "Clearer ranges and measures for principal corporate risks enable risk levels to be more directly linked to specific actions and support an earlier, more consistent response." }, { "speaker": "SPEAKER_18", "start": 1586.665, "end": 1591.885, "text": "Thank you for your ongoing support and direction as we continue to evolve our corporate risk reporting." }, { "speaker": "SPEAKER_18", "start": 1592.685, "end": 1607.445, "text": "The changes in this report reflect your input and our commitment to being transparent and responsive. I'm now going to turn things over to our manager of enterprise risk management, Sajan Chigani, to provide the details of our mid-year report. Sajjan, over to you." }, { "speaker": "SPEAKER_18", "start": 1608.525, "end": 1609.365, "text": "Next slide, please." }, { "speaker": "SPEAKER_00", "start": 1610.385, "end": 1617.865, "text": "Thank you, David. Good morning, Chair and the members of the audit committee. What we have in front of us is" }, { "speaker": "SPEAKER_00", "start": 1618.785, "end": 1627.525, "text": "the environmental scan. Eleven principal corporate risks do not move on their own. They respond to pressures that may or may not be under our control." }, { "speaker": "SPEAKER_00", "start": 1627.845, "end": 1629.965, "text": "These five indicators are the pressures" }, { "speaker": "SPEAKER_00", "start": 1630.585, "end": 1634.245, "text": "that touch multiple risks at once, which is why we lead with them." }, { "speaker": "SPEAKER_00", "start": 1635.325, "end": 1636.865, "text": "First is the population growth." }, { "speaker": "SPEAKER_00", "start": 1637.345, "end": 1647.725, "text": "It is estimated at 1.6% for 2026. That's a marked slowdown. We grew 6.2% in 2024 and 3.2% in 2025." }, { "speaker": "SPEAKER_00", "start": 1648.345, "end": 1656.025, "text": "But the pressure hasn't gone away. We are now absorbing the long tail of that rapid growth in housing infrastructure and service capacity." }, { "speaker": "SPEAKER_00", "start": 1657.165, "end": 1667.705, "text": "In terms of unemployment, it is at 7.2%, which looks stable, but it tells us two things at once. The labor market remains tight for the specialized roles. We are" }, { "speaker": "SPEAKER_00", "start": 1667.845, "end": 1669.305, "text": "having a challenge to hire" }, { "speaker": "SPEAKER_00", "start": 1669.745, "end": 1671.245, "text": "engineers, technical," }, { "speaker": "SPEAKER_00", "start": 1671.685, "end": 1673.785, "text": "Roles and emergency response." }, { "speaker": "SPEAKER_00", "start": 1674.125, "end": 1677.465, "text": "And elevated unemployment keeps demand for social supports high." }, { "speaker": "SPEAKER_00", "start": 1678.565, "end": 1683.305, "text": "In terms of inflation at 3.7%, that's a number I'll draw your attention to." }, { "speaker": "SPEAKER_00", "start": 1683.885, "end": 1694.625, "text": "It was 2.2% in March 2026. So it moved a point and a half within one quarter, and it now sits above our appetite band of 1.5 to 2.5%." }, { "speaker": "SPEAKER_00", "start": 1695.665, "end": 1702.385, "text": "It challenges our capital project delivery on one side and community affordability on the other." }, { "speaker": "SPEAKER_00", "start": 1703.085, "end": 1707.105, "text": "You'll see it again on the next slide in two different risks." }, { "speaker": "SPEAKER_00", "start": 1708.505, "end": 1728.425, "text": "In terms of the water demand, at 335 liters per capita per day is stable and current drought conditions are favorable. But this indicator is on the gauge because it's in for it's important for the whole system in terms of drought, population growth, and infrastructure limits can compound quickly, and key infrastructure is under repair through 2026." }, { "speaker": "SPEAKER_00", "start": 1729.865, "end": 1733.765, "text": "Trust in the city at 54% is good news, but with a caveat." }, { "speaker": "SPEAKER_00", "start": 1734.605, "end": 1743.725, "text": "That's three consecutive improving survey waves from an all-time low of 38% in spring 2025 through 47% last fall to 54% now." }, { "speaker": "SPEAKER_00", "start": 1744.425, "end": 1748.685, "text": "The caveat is 28% of Calgaryans are neutral. They haven't decided." }, { "speaker": "SPEAKER_00", "start": 1749.265, "end": 1756.885, "text": "And it may sway anyway, depending on how we manage the service delivery and how we manage our capital infrastructure delivery." }, { "speaker": "SPEAKER_00", "start": 1757.985, "end": 1764.165, "text": "So the takeaway from the slide is the environment is not getting easier. Growth pressures exist." }, { "speaker": "SPEAKER_00", "start": 1764.585, "end": 1770.325, "text": "Costs are rising and the trust is recovering, but we need to keep a keep a watch on that." }, { "speaker": "SPEAKER_00", "start": 1770.945, "end": 1776.045, "text": "Hold those five numbers in mind because every one of them appears inside the risk ratings you are about to see." }, { "speaker": "SPEAKER_00", "start": 1777.005, "end": 1779.965, "text": "With that, I'll uh I'll move to the next slide." }, { "speaker": "SPEAKER_00", "start": 1783.605, "end": 1785.165, "text": "This is the report in one table." }, { "speaker": "SPEAKER_00", "start": 1785.685, "end": 1787.525, "text": "11 risk, five columns," }, { "speaker": "SPEAKER_00", "start": 1787.905, "end": 1801.485, "text": "reading left to right where each risk is today, how our response work is progressing, which direction the risk is moving, our stance on whether the risk is acceptable, and where we honestly expect to be in three years." }, { "speaker": "SPEAKER_00", "start": 1802.425, "end": 1808.805, "text": "Two legends at the bottom. Let me translate the important one. Maintain means the risk is inside our appetite." }, { "speaker": "SPEAKER_00", "start": 1809.465, "end": 1812.305, "text": "We will keep doing what we have been doing so far." }, { "speaker": "SPEAKER_00", "start": 1813.125, "end": 1822.645, "text": "Escalate means it's outside appetite but inside tolerance, which means the leadership watches it very closely and is ready to plan as needed." }, { "speaker": "SPEAKER_00", "start": 1823.505, "end": 1827.785, "text": "Reduce means it's above both appetite as well as tolerance." }, { "speaker": "SPEAKER_00", "start": 1828.125, "end": 1831.585, "text": "Active new measures are required, and just not monitoring will help." }, { "speaker": "SPEAKER_00", "start": 1832.645, "end": 1834.005, "text": "The first thing you'll notice" }, { "speaker": "SPEAKER_00", "start": 1834.405, "end": 1837.345, "text": "is a new row in terms of cyber, which is at the bottom row," }, { "speaker": "SPEAKER_00", "start": 1837.845, "end": 1839.845, "text": "and that is what David" }, { "speaker": "SPEAKER_00", "start": 1840.705, "end": 1842.585, "text": "alluded to in his presentation." }, { "speaker": "SPEAKER_00", "start": 1842.805, "end": 1845.645, "text": "It is rated extensive with an increasing trend." }, { "speaker": "SPEAKER_00", "start": 1847.745, "end": 1856.205, "text": "Cyber was previously bundled inside technological disruption. It has now an owner, its own key risk metrics, and the attention." }, { "speaker": "SPEAKER_00", "start": 1856.565, "end": 1868.465, "text": "From the management. The in-development status describes this new reporting in terms of how the security teams and defenses have not stopped operating, but you'll see the full metrics at the year end." }, { "speaker": "SPEAKER_00", "start": 1870.045, "end": 1875.245, "text": "In terms of the two extensive risks on the table," }, { "speaker": "SPEAKER_00", "start": 1875.805, "end": 1883.065, "text": "cyber and capital infrastructure both carry a reduced stance, meaning both sit above our acceptable appetite and tolerance." }, { "speaker": "SPEAKER_00", "start": 1883.725, "end": 1887.505, "text": "For capital infrastructure, the three year target is still extensive." }, { "speaker": "SPEAKER_00", "start": 1888.865, "end": 1897.925, "text": "We need roughly 1.8 billion billion a year just to maintain a 155 billion asset base, and 13.4% of assets are are in." }, { "speaker": "SPEAKER_00", "start": 1898.205, "end": 1899.625, "text": "Poor or very poor condition." }, { "speaker": "SPEAKER_00", "start": 1900.705, "end": 1902.005, "text": "So the strategy is" }, { "speaker": "SPEAKER_00", "start": 1902.325, "end": 1905.025, "text": "only 1.4% of our most critical assets are in" }, { "speaker": "SPEAKER_00", "start": 1905.465, "end": 1908.725, "text": "are in poor condition, and keeping it that way is the real success measure." }, { "speaker": "SPEAKER_00", "start": 1909.585, "end": 1915.885, "text": "The reduced label keeps this on an agenda every cycle, and you would see updates as we move along." }, { "speaker": "SPEAKER_00", "start": 1919.005, "end": 1920.045, "text": "Next, look at the" }, { "speaker": "SPEAKER_00", "start": 1920.445, "end": 1921.225, "text": "trend column." }, { "speaker": "SPEAKER_00", "start": 1921.905, "end": 1923.405, "text": "Three arrows point up" }, { "speaker": "SPEAKER_00", "start": 1923.885, "end": 1926.465, "text": "social well being, service delivery, and cyber." }, { "speaker": "SPEAKER_00", "start": 1926.905, "end": 1944.125, "text": "These are the risks where we demand where the demand is growing faster than our response. Distress center calls up 46%, downtown safety calls up 25%, citizen satisfaction at 62% against a 70% appetite band we have. The strategies are on track." }, { "speaker": "SPEAKER_00", "start": 1944.765, "end": 1950.285, "text": "The need is simply growing faster. That's exactly what the escalate stand escalate stands is for." }, { "speaker": "SPEAKER_00", "start": 1951.905, "end": 1955.605, "text": "In terms of uh the uh restraints," }, { "speaker": "SPEAKER_00", "start": 1956.325, "end": 1960.105, "text": "Three risks are trending up at year end, are now stable." }, { "speaker": "SPEAKER_00", "start": 1960.805, "end": 1964.345, "text": "Capital infrastructure, employee experience, and reputation risk." }, { "speaker": "SPEAKER_00", "start": 1965.145, "end": 1978.825, "text": "Accommodating growth is the only risk targeting a better rating in three years from high to medium. On the strength of record housing delivery, 23,360 starts in 2025 and improving affordability." }, { "speaker": "SPEAKER_00", "start": 1980.345, "end": 1985.225, "text": "So, what is the one line summary of this dashboard? Our risk management tools are getting stronger." }, { "speaker": "SPEAKER_00", "start": 1985.905, "end": 2000.545, "text": "We have, as as David mentioned, we have owners, we have now appetite bands, we have targets. While the environment gets harder in three specific places in terms of cyber asset condition and growth driven social pressure," }, { "speaker": "SPEAKER_00", "start": 2001.565, "end": 2007.105, "text": "you see that it has been it has been shown with in the in the risk report as well." }, { "speaker": "SPEAKER_00", "start": 2008.225, "end": 2015.245, "text": "With that framing, I'll hand over to Jan Bridley, who's our chief information technology officer, to go through IT risk trends." }, { "speaker": "SPEAKER_00", "start": 2015.485, "end": 2016.105, "text": "Over to you," }, { "speaker": "SPEAKER_00", "start": 2016.305, "end": 2016.745, "text": "Jan." }, { "speaker": "SPEAKER_24", "start": 2019.945, "end": 2021.405, "text": "Thank you very much and good morning." }, { "speaker": "SPEAKER_24", "start": 2022.205, "end": 2034.865, "text": "I appreciate the opportunity to go through the mid-year update on the technology disruption principle corporate risk, highlighting our current risk exposure, what's changed over the last year, and where we are focusing our mitigation efforts." }, { "speaker": "SPEAKER_24", "start": 2035.865, "end": 2044.185, "text": "The technological disruption risk has been reduced from extensive to high. However, it's important to note the underlying pressures have not decreased." }, { "speaker": "SPEAKER_24", "start": 2044.705, "end": 2054.005, "text": "The risk trend remains stable with several trending upward, and the exposure continues to be driven by high likelihood and moderate to significant impacts." }, { "speaker": "SPEAKER_24", "start": 2054.745, "end": 2060.685, "text": "In particular, technology availability, demand, and funding pressures continue to increase." }, { "speaker": "SPEAKER_24", "start": 2061.385, "end": 2066.045, "text": "Dependency on external vendors has escalated and is now rated extensive." }, { "speaker": "SPEAKER_24", "start": 2066.885, "end": 2078.245, "text": "Most recent examples of this exposure are the recent copilot outage that we experienced, as well as an upgrade to a product used by planning that disrupted permitting for almost two weeks." }, { "speaker": "SPEAKER_24", "start": 2080.065, "end": 2086.785, "text": "Our digital infrastructure continues to be a high-pressure risk environment, largely driven by four primary factors." }, { "speaker": "SPEAKER_24", "start": 2087.065, "end": 2089.665, "text": "The first one is demand and complexity." }, { "speaker": "SPEAKER_24", "start": 2090.345, "end": 2097.145, "text": "Technology demand continues to outpace capacity, and nearly all corporate priorities depend on IT delivery." }, { "speaker": "SPEAKER_24", "start": 2098.305, "end": 2109.705, "text": "Second, cloud and vendor dependency. We are increasingly reliant on external vendors for uptime, support, and pricing, while our ability to influence those outcomes is limited." }, { "speaker": "SPEAKER_24", "start": 2110.845, "end": 2113.065, "text": "Third, privacy and data exposure." }, { "speaker": "SPEAKER_24", "start": 2113.545, "end": 2118.585, "text": "With the change in legislation, along with emerging tools, and in particular agentic AI," }, { "speaker": "SPEAKER_24", "start": 2118.845, "end": 2124.085, "text": "our risk of unintended data exposure, as well as the importance of data and AI sovereignty," }, { "speaker": "SPEAKER_24", "start": 2124.345, "end": 2125.285, "text": "is increasing." }, { "speaker": "SPEAKER_24", "start": 2126.605, "end": 2128.785, "text": "And fourth, legacy technology." }, { "speaker": "SPEAKER_24", "start": 2129.265, "end": 2136.945, "text": "About 18% of our applications present support challenges which increase service continuity risk exposure." }, { "speaker": "SPEAKER_24", "start": 2138.025, "end": 2141.625, "text": "Collectively, these are structural pressures, not isolated risks." }, { "speaker": "SPEAKER_24", "start": 2142.285, "end": 2143.925, "text": "From a performance perspective," }, { "speaker": "SPEAKER_24", "start": 2144.145, "end": 2146.125, "text": "Our core infrastructure remains strong." }, { "speaker": "SPEAKER_24", "start": 2146.785, "end": 2152.545, "text": "Our data center uptime is at 100%. Our network availability is above 99.9%." }, { "speaker": "SPEAKER_24", "start": 2153.745, "end": 2161.405, "text": "Where we are seeing challenges, as I've mentioned, is in that cloud service availability, particularly our Microsoft tools, are below target" }, { "speaker": "SPEAKER_24", "start": 2161.865, "end": 2165.585, "text": "and our legacy systems remain above acceptable thresholds." }, { "speaker": "SPEAKER_24", "start": 2166.225, "end": 2172.105, "text": "So while the foundation is resilient, pressure is shifting into cloud reliance and aging systems." }, { "speaker": "SPEAKER_24", "start": 2172.945, "end": 2175.625, "text": "Our mitigation efforts are focused in three key areas." }, { "speaker": "SPEAKER_24", "start": 2175.845, "end": 2178.205, "text": "The first one is to mature our risk practices." }, { "speaker": "SPEAKER_24", "start": 2179.565, "end": 2182.065, "text": "While risk has always been a part of what we do in IT," }, { "speaker": "SPEAKER_24", "start": 2182.485, "end": 2192.265, "text": "the creation of a senior manager role focused on standing up a risk practice and will mature our risk awareness across all areas of IT service delivery." }, { "speaker": "SPEAKER_24", "start": 2193.565, "end": 2204.985, "text": "Secondly, we're focused on modernization and risk reduction. We've introduced a new application risk assessment framework and are actively managing legacy systems through portfolio modernization." }, { "speaker": "SPEAKER_24", "start": 2206.305, "end": 2211.525, "text": "Third, governance and control. We're strengthening oversight across vendor management," }, { "speaker": "SPEAKER_24", "start": 2211.785, "end": 2216.845, "text": "data governance, technology procurement, and emerging technologies, including AI." }, { "speaker": "SPEAKER_24", "start": 2217.705, "end": 2223.765, "text": "This includes enterprise wide efforts like the AI strategy and the new data governance model currently being developed." }, { "speaker": "SPEAKER_24", "start": 2224.665, "end": 2226.745, "text": "One critical point for awareness." }, { "speaker": "SPEAKER_24", "start": 2227.385, "end": 2234.725, "text": "Maintaining IT centralized control over the city's digital infrastructure is essential to managing the technological disruption risk." }, { "speaker": "SPEAKER_24", "start": 2235.505, "end": 2239.405, "text": "Changes driven outside of IT in areas including business technology groups." }, { "speaker": "SPEAKER_24", "start": 2239.665, "end": 2242.625, "text": "And in particular, where we think about Agentic AI" }, { "speaker": "SPEAKER_24", "start": 2242.865, "end": 2247.685, "text": "and some of the tools that are being put in the hands of our colleagues" }, { "speaker": "SPEAKER_24", "start": 2248.325, "end": 2259.745, "text": "can materially increase our exposure and requires formal oversight of best practices, including risk assessments, testing, and rollback plans prior to IT's approval." }, { "speaker": "SPEAKER_24", "start": 2260.305, "end": 2279.465, "text": "In summary, the environment remains high risk and increasingly complex. We have strong foundational controls in place, but sustained focus is required on vendors, funding, legacy modernization, and governance. We continue to actively monitor manage these pressures and the metrics that represent current status." }, { "speaker": "SPEAKER_24", "start": 2280.125, "end": 2280.885, "text": "Over to you, John." }, { "speaker": "SPEAKER_14", "start": 2283.645, "end": 2338.445, "text": "Thank you, Jan. I'm John Napier. I'm the leader of Enterprise Risk Management. I'll take us to the next slide just to talk a little bit about what the Enterprise Risk Management team has been focused on this year. And really what that comes down to is being focused on conversations that have an impact. We're doing that in three ways. The first component is focused on timeliness. We've been meeting with leadership teams and senior leadership within administration to make risk discussions more dynamic throughout the organization. We're focused on what we're calling good risk management hygiene throughout the city, which means that risk information is cleaned up and cleaned up and updated regularly. And all of this is designed to make risk insights more relevant and applicable. You'll see this in our report with an emphasis while we do have information that's this point in time, we're also looking ahead to what's next for our risk management strategies and what's around the corner." }, { "speaker": "SPEAKER_14", "start": 2339.625, "end": 2361.485, "text": "Also making sure that infrared risk conversations are happening at the right level. An example of this is how we tie risk appetite levels to actions. We escalate risk that are outside our appetite zone. And escalating risk is not just about bringing up more risks to decision makers. It's about being really clear and conscientious about who needs to be aware of which risk and what we're doing to respond to it." }, { "speaker": "SPEAKER_14", "start": 2362.505, "end": 2380.965, "text": "And the last piece is action oriented. This is an ongoing goal of my team to ensure risk insights are meaningful and impactful. There will always be a need to calibrate our information to different audiences. And what we're building in both our processes and practices throughout the organization is a focus on risk discussions that make a difference." }, { "speaker": "SPEAKER_14", "start": 2381.725, "end": 2417.305, "text": "In order to do that, we're working with other groups like Strategic Foresight or Emergency Management to look at risks in different ways, strengthening our network and how we manage risk throughout the organization. We want people to know that risk is not something we do for its own sake. We practice risk management to help meet our objectives and deliver services to Calgarians. Ultimately, the goal is to ensure that as pressures continue to evolve, we're making deliberate, risk informed choices about where to focus, when to adapt, and how to act. So with that, I will pass things back to David Duckworth to bring us to a close." }, { "speaker": "SPEAKER_18", "start": 2434.665, "end": 2458.365, "text": "All of our reporting processes as well as the ongoing strategies we are working to on to minimize risk. As you can see from our report, all the initiatives currently underway are on track. And while risk ratings have remained steady, we have seen some positive trend changes with capital infrastructure, employee experience, and reputation." }, { "speaker": "SPEAKER_18", "start": 2458.845, "end": 2469.325, "text": "This is a direct result of infrastructure renewal initiatives thanks to Council's investment and targeted actions to address capacity, cost, and procurement challenges that support stability." }, { "speaker": "SPEAKER_18", "start": 2470.365, "end": 2485.725, "text": "As the organization's risk maturity evolves, so too does our risk reporting. I'm pleased to report that MP has been recently contracted to review the risk management framework and processes and help guide our evolution of risk management here at the city." }, { "speaker": "SPEAKER_18", "start": 2486.325, "end": 2511.785, "text": "Reliable services for current and future generations depend on continuous planning, adaptation, and effective risk management. And by mitigating potential impacts and capitalizing on opportunities, the city can help achieve Council's vision of Calgary as a great place to make a living and a great place to make a life. We're here to continue earning Calgaryans trust, and to do so means identifying risks that could impact reliable service delivery to them." }, { "speaker": "SPEAKER_18", "start": 2513.745, "end": 2519.885, "text": "Pardon. Being transparent about those risks and striving for continuous improvement. With that," }, { "speaker": "SPEAKER_18", "start": 2520.605, "end": 2537.565, "text": "I'd like to once again recommend that the audit committee receive this report and presentation for information for and the corporate record and that the closed meeting discussions and attachments three and five remain confidential. My team and I are now happy to take any questions from you or provide further information and clarification where needed." }, { "speaker": "SPEAKER_18", "start": 2538.325, "end": 2538.725, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 2539.845, "end": 2540.425, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 2541.525, "end": 2542.985, "text": "Wait and see if anyone has questions." }, { "speaker": "SPEAKER_10", "start": 2546.485, "end": 2547.105, "text": "You have questions?" }, { "speaker": "SPEAKER_10", "start": 2549.405, "end": 2550.385, "text": "Just just go, Jameson." }, { "speaker": "SPEAKER_09", "start": 2553.865, "end": 2557.545, "text": "Can you are are you able to answer on the cyber part or no?" }, { "speaker": "SPEAKER_09", "start": 2558.925, "end": 2560.925, "text": "Um" }, { "speaker": "SPEAKER_09", "start": 2563.065, "end": 2571.965, "text": "so what is what is the timeline for I'm wondering just just what the timeline is to move uh the risk response from in development" }, { "speaker": "SPEAKER_09", "start": 2572.405, "end": 2574.905, "text": "process to the the next phase?" }, { "speaker": "SPEAKER_18", "start": 2577.305, "end": 2578.265, "text": "We'll bring on" }, { "speaker": "SPEAKER_18", "start": 2578.705, "end": 2586.745, "text": "Up Mr. Tillston to answer that question. And some some some questions may answers maybe require going into closed session, and I'll let my team determine." }, { "speaker": "SPEAKER_10", "start": 2586.745, "end": 2590.665, "text": "When you hit the threshold of in-camera for a response, just let us know and we can go in camera." }, { "speaker": "SPEAKER_11", "start": 2592.445, "end": 2601.905, "text": "Uh thank you for that question. My name is Mike Tillots and I'm the director of corporate security, and for the next several months anyway, I'm the Chief Information Security Officer. To your question," }, { "speaker": "SPEAKER_11", "start": 2603.005, "end": 2634.245, "text": "giving a dire a definitive timeline on progress in terms of uh risk rating from extensive to high, it's difficult to give you a definitive. Now, with the investments that council made in the cybersecurity program in November and then the uh robust budget package that we've put before you for this November, we anticipate that we'll be making um very good progress on um on our inherent and residual risk." }, { "speaker": "SPEAKER_09", "start": 2636.085, "end": 2639.525, "text": "Are we confident that that pace matches the threat at this point?" }, { "speaker": "SPEAKER_11", "start": 2642.645, "end": 2667.365, "text": "When we put together our budget submission, we're always balancing moving as quickly as we can and as slowly as we must to uh you know do our due diligence, um not move so quickly that we miss things, um, that we're not creating unintended consequences of moving too quickly. So we're always looking for that sweet spot and that balance. And we believe that the pace that we're moving at and the investments that we're asking for meet that that balance." }, { "speaker": "SPEAKER_09", "start": 2668.385, "end": 2670.745, "text": "You mentioned you're kind of wearing two hats right now." }, { "speaker": "SPEAKER_09", "start": 2671.345, "end": 2675.485, "text": "Um do you have a timeline on when that new person is going to be?" }, { "speaker": "SPEAKER_09", "start": 2676.225, "end": 2679.165, "text": "Um in that role or or are are they all ready?" }, { "speaker": "SPEAKER_11", "start": 2679.605, "end": 2685.885, "text": "I'm looking over my shoulder because GM Flowen is handling that part, the recruitment part of the process. So I think I'll turn it to her." }, { "speaker": "SPEAKER_26", "start": 2692.925, "end": 2704.785, "text": "So we are working with um an external recruiter. Um we are doing a nationwide search for a director of our new cybersecurity business unit. And the uh interviews begin tomorrow." }, { "speaker": "SPEAKER_26", "start": 2705.805, "end": 2721.785, "text": "So depending on how quickly we can get through all the interview process and the um availability of the successful candidate, um I'm hopeful to have that person in place sooner rather than later. Um my my" }, { "speaker": "SPEAKER_26", "start": 2721.985, "end": 2728.065, "text": "My my first goal was hoping for September. Um we'll see if we can actually reach that milestone." }, { "speaker": "SPEAKER_08", "start": 2728.925, "end": 2729.485, "text": "Okay, well" }, { "speaker": "SPEAKER_08", "start": 2730.145, "end": 2731.505, "text": "good luck, best of luck with that." }, { "speaker": "SPEAKER_10", "start": 2734.445, "end": 2735.545, "text": "Thanks. Public member Kim?" }, { "speaker": "SPEAKER_07", "start": 2744.345, "end": 2752.465, "text": "Great. Thank you. Thank you for your presentation. I applaud the level of work that goes into this and the maturity that the ERM" }, { "speaker": "SPEAKER_07", "start": 2752.665, "end": 2754.805, "text": "journey has been. So I applaud the" }, { "speaker": "SPEAKER_07", "start": 2755.325, "end": 2757.885, "text": "the developments and the progress that's been made to date." }, { "speaker": "SPEAKER_07", "start": 2758.205, "end": 2767.305, "text": "But our role is to poke holes and to find some questions. So I did have a few questions. Specifically, um if we could go to your presentation where if" }, { "speaker": "SPEAKER_07", "start": 2767.525, "end": 2769.045, "text": "you have uh it would be" }, { "speaker": "SPEAKER_07", "start": 2770.005, "end": 2778.065, "text": "Yeah, oh right there. Uh the principal corporate risks. So these are your 11 corporate risks or principal corporate risks." }, { "speaker": "SPEAKER_07", "start": 2778.205, "end": 2779.045, "text": "And" }, { "speaker": "SPEAKER_07", "start": 2779.465, "end": 2799.785, "text": "I see four of them are in progress and one is in development. So roughly five out of the 11 are not on track. And the ones that are not on track are really the extensive and higher risk ratings. So would that suggest that" }, { "speaker": "SPEAKER_07", "start": 2800.305, "end": 2816.225, "text": "Our risk response is perhaps not as developed as it should be? Are we not properly managing our risks? Or maybe just help me understand why those aren't on track when those are our most extensive and high risks." }, { "speaker": "SPEAKER_14", "start": 2819.665, "end": 2832.265, "text": "Um, thank you for the question. I think one thing we can say about that relationship between those being the highest risks and the responses are in development is that um" }, { "speaker": "SPEAKER_14", "start": 2832.545, "end": 2855.025, "text": "Because there are so many pressures on this risk, because it is elevated, we are changing how we respond to them. And so that's where the in progress comes on. If things were in track, we wouldn't expect it to be outside our appetite zone. And so this means that we do have to actively shift how we're managing that risk when it is sitting in that kind of elevated state." }, { "speaker": "SPEAKER_07", "start": 2860.745, "end": 2870.865, "text": "Okay, so I guess it's not I was wondering if it's a risk in itself by them not being on track. What I'm hearing is that work is still being done to manage these risks." }, { "speaker": "SPEAKER_00", "start": 2875.905, "end": 2890.285, "text": "Probably member Kim, you you know, as you said, you know, there there is an element of work in progress that is happening and when we say on track, that that also does not imply everything is, you know, is is great. It only implies that" }, { "speaker": "SPEAKER_00", "start": 2890.465, "end": 2949.785, "text": "Whatever the uh the administration has agreed or is pursuing in terms of the risk management strategies, those are progressing the way it is intended. And that is why if if if I if I can build that connection to if you see the uh the uh timeline piece uh with each of the uh risk management strategies that are there in attachment two, we have some timelines for we have timelines for every uh risk management strategy and how it ties into the uh the risk rating. So so I think that that is where I think I would I would kind of bring that view into view uh into consideration as well. Uh so so so the intent is to showcase that work is being done on those strategies and the impact of it is that we it is within the tolerance or it is within the appetite, and that is how we kind of calibrate our ratings there." }, { "speaker": "SPEAKER_07", "start": 2951.705, "end": 2956.305, "text": "Great, thank you. And on that first one, the capital infrastructure." }, { "speaker": "SPEAKER_07", "start": 2956.665, "end": 2960.965, "text": "Where it shows shows our current residual risk rating as extensive" }, { "speaker": "SPEAKER_07", "start": 2961.565, "end": 2983.485, "text": "or risk appetite intolerances to reduce, and yet the target residual risk rating is still extensive. So in reading this, is it really that our target is to remain extensive, or is it that the outcome is that our risk rating is that is that because we just don't have the budget dollars to be able to bring it lower, that it's just not feasible." }, { "speaker": "SPEAKER_22", "start": 2994.565, "end": 3038.865, "text": "Uh good afternoon as they all look at each other. Uh Ryan Vanderpatten, acting GM for infrastructure services today. I would say it actually is, uh, given the timeline, that is where we uh anticipate being, uh, given our current trajectory uh and planned investments. Uh there is a lot of work still required uh to bring our principal corporate risk around capital infrastructure down. However, through the uh number of strategies identified in attachment two, we are making uh substantial progress, which is why we've been able to stabilize uh the risk trend uh for capital infrastructure. However, uh it does require a substantial long-term investment in our infrastructure to bring that uh risk rating down from extensive." }, { "speaker": "SPEAKER_07", "start": 3041.045, "end": 3048.645, "text": "Great, thank you. And then further down on the cyber risk, it's shown as extensive, yet the risk response is in development." }, { "speaker": "SPEAKER_07", "start": 3049.525, "end": 3052.725, "text": "So if the risk response is in development," }, { "speaker": "SPEAKER_07", "start": 3053.365, "end": 3063.205, "text": "it's extensive, and then yet the targets to get to high in three years, is that realistic that we can get to high and bring it down within that time frame?" }, { "speaker": "SPEAKER_11", "start": 3065.905, "end": 3081.685, "text": "In short, yes. We have a plan and we think it's a reasonable, robust, and achievable plan. And that's what we've put before council for our 27 to 30 budget submission. So we we believe that that is achievable." }, { "speaker": "SPEAKER_07", "start": 3085.185, "end": 3086.705, "text": "Great, thank you. Those are my questions." }, { "speaker": "SPEAKER_10", "start": 3087.985, "end": 3089.885, "text": "Thank you. Uh public member Knacker." }, { "speaker": "SPEAKER_04", "start": 3091.945, "end": 3143.105, "text": "Thank you, Chair. Firstly, I think I want to quote you when you said that the risk management is really looking good because as I look uh to the path, I've really seen those kind of improvements, and especially the one with the risk owner. So kudos to the team. Um I don't want to delve too deep because uh maybe there'll be an opportunity at the closed session. Uh, but maybe just around the uh cyber risk and technology risk being broken up, I just want to get a sense of comfort that there's enough uh oversight over those two areas that we won't be uh heading for any sort of siloed uh um uh sort of approach to these risks because they are so integrated with each other." }, { "speaker": "SPEAKER_26", "start": 3149.445, "end": 3157.845, "text": "If I could just make an introductory comment. Um so we have for many years had cybersecurity separate from IT." }, { "speaker": "SPEAKER_26", "start": 3158.645, "end": 3300.525, "text": "And it is only following the recent audit committee report that came forward in April that there was confirmation from a third party that best practices were to have a standalone cybersecurity if your organization was able to facilitate that. With that direction, we have made the decision organizationally to elevate that the profile of that group. So rather than being a business or a division under an existing business unit of corporate security, it has now come into its own. So that now there can be a very clear insight and transparency for audit committee and for council around the risk and around the work that is going into that. So in terms of having them as separate groups, this has always been something that we've had. And we have a core working group between the general manager of People Innovation Collaborative Services within which IT sits, our CETO, Ms. Bradley, our Chief Information Security Officer, Mike Tillotson, who will soon become the security, the cybersecurity director, and myself. And we work together to talk about and discuss issues and ensure that we have bridges and that we are working very collaboratively together because we must. There is no reason why we should not, and no reason why we cannot. And we must, for this organization, work together, and the teams understand that, and so does our executive leadership team group. And so that's the model upon which we have built the cybersecurity, and then with that becoming their own business unit, we really felt that it was not getting the profile in the corporate risk report, the principal corporate risk report, by being combined with technology disruption. And so that is why we have advocated for a cybersecurity or a cyber principal corporate risk, so that there is very clear insight into this very um, I don't want to say volatile, but uh evolving area. Yes, evolving area. And um and so that is why we've broken it out. It isn't to be siloed, it is to bring greater transparency and so that there can be a much deeper look into both areas because both the uh technological disruption is also very important, and it's important to be able to discuss both. So that would be my introductory high level comment, and I'd pass it over to the detailed experts to speak more." }, { "speaker": "SPEAKER_04", "start": 3300.965, "end": 3301.805, "text": "Okay, thank you." }, { "speaker": "SPEAKER_26", "start": 3301.425, "end": 3301.665, "text": "Thank you." }, { "speaker": "SPEAKER_11", "start": 3302.865, "end": 3345.645, "text": "Well that was pretty good. I don't know if I can add a lot to that. Um other than uh you know maybe just to to uh reiterate, we can't be siloed. Um it's it's too complex, it's too fast moving, it's too important. Um, and it's not just with cyber and IT, but with our friends in and um operational services with OT technology that you're gonna hear from today. We have to work very closely together to make all of this work and reduce the risk. So uh we're very alive to that um of of making sure we work closely together and and we should always be asking ourselves the question uh you know, um, have we involved the other group or or do they know about it or what do they know, you know, those kinds of things. And so we're we're very alive to it, uh to Jill's point. So" }, { "speaker": "SPEAKER_04", "start": 3345.865, "end": 3346.025, "text": "Okay." }, { "speaker": "SPEAKER_04", "start": 3346.425, "end": 3360.585, "text": "Thank you so much for that feedback, and that's really helpful to know. So maybe just a follow up there. Is there any thought as I look at the technology disruption and cyber?" }, { "speaker": "SPEAKER_04", "start": 3360.905, "end": 3368.525, "text": "Is there any thought at some point to pulling up the AI risk given that" }, { "speaker": "SPEAKER_04", "start": 3369.385, "end": 3397.565, "text": "The risk is so integrated into many of the uh sort of applications that we're seeing today. And I think also to the point about the recent disruptions that we've seen, and I think specifically as well beyond co-pilot that permitting uh disruption that we saw. Uh so maybe just uh your thoughts on pulling up that risk at some point. Is it too early? I mean, I have my opinions, but is it too early or what what is the stance within the city?" }, { "speaker": "SPEAKER_11", "start": 3399.745, "end": 3402.205, "text": "Do you mean pulling it up as its own principal corporate risk?" }, { "speaker": "SPEAKER_04", "start": 3402.205, "end": 3406.545, "text": "Correct. Because it's so pervasive and because it's touching so many systems." }, { "speaker": "SPEAKER_11", "start": 3406.685, "end": 3445.385, "text": "Yeah, I mean I think you bring up a great point because it is um uh it it's everything now. Um and I think one could probably even talk about the operational technology risk being, you know, is do you elevate that as well? And then I don't want to speak for my friends in in ERM about how many principal corporate risks do you now have and do you dilute the waters and which ones should be elevated and not. But I I think you make a very good point about the AI uh risk. Um it just continues to elevate day by day. And so at what point does it become elevated? I'm not sure I can answer that from my position. I don't know, Sejan, if you want to touch on that at all." }, { "speaker": "SPEAKER_00", "start": 3446.145, "end": 3446.625, "text": "Yeah." }, { "speaker": "SPEAKER_00", "start": 3447.805, "end": 3470.645, "text": "Thank you, uh Public Member Niker for the appreciation. I want to start with that. I didn't get an opportunity to acknowledge that. I think there's a lot of work that goes uh behind the scenes, as everybody appreciates. So uh uh a pat on the back is is really appreciated. In terms of uh the principal corporate risk and how we uh we we include a new risk, you know, we had we we've had a good conversation on how technological disruption is now." }, { "speaker": "SPEAKER_00", "start": 3470.925, "end": 3477.445, "text": "It's been uh split into technology and uh and cyber. And then we had we now have accommodating growth" }, { "speaker": "SPEAKER_00", "start": 3478.005, "end": 3493.185, "text": "uh risk which has which has a growth component and a housing component to it. So this can easily be taken back and we can assess and see whether uh it warrants a principal corporate risk on its own. So we'll take that back and assess." }, { "speaker": "SPEAKER_04", "start": 3493.565, "end": 3497.885, "text": "Thank you so much for that. Um just one more area. Um uh" }, { "speaker": "SPEAKER_04", "start": 3498.285, "end": 3499.385, "text": "and um" }, { "speaker": "SPEAKER_04", "start": 3499.725, "end": 3511.625, "text": "You know, you may or may not have an answer to this. Uh but has there been any sort of assessment that's done within the city around uh the shadow AI uh uh activities that or or not?" }, { "speaker": "SPEAKER_24", "start": 3514.685, "end": 3538.845, "text": "That's something we're definitely keeping an eye on. Through our emerging technologies team, we do monitor what tools are being used. And as I think I mentioned previously, when we believe that their use is not within our policy, we block it. So we are continuing to take that approach. While we want to support innovation and experimentation, we also want to make sure that we're managing the risk." }, { "speaker": "SPEAKER_24", "start": 3539.205, "end": 3539.365, "text": "Okay." }, { "speaker": "SPEAKER_04", "start": 3539.445, "end": 3540.785, "text": "Thank you so much. Thank you, Chair." }, { "speaker": "SPEAKER_10", "start": 3543.045, "end": 3545.525, "text": "Thank you. Uh Councilor Pentasopoulos." }, { "speaker": "SPEAKER_15", "start": 3545.785, "end": 3577.265, "text": "Great. Thanks so much, Chair. Yeah, thanks to administration. I echo the comments. I see the report getting better. We start in January, and here we go, and then we have our full year come January next year. Next year it'll be that much better. A lot of questions were answered, but I just want to speak a bit about the the capital and uh obviously our extensive and the residuals. We heard a number 1.8 million. And maybe look to colleagues and infrastructure and whoever. Um 1.8 million, we've talked about a five million dollar, excuse me, five billion dollar a year. Capital spend, that's you know, call it forty percent. And yet our" }, { "speaker": "SPEAKER_15", "start": 3577.705, "end": 3584.905, "text": "Target residual risk after three years is extensive. Maybe just talk about what would it take to see a meaningful reduction" }, { "speaker": "SPEAKER_15", "start": 3585.545, "end": 3602.985, "text": "in an unconstrained environment? Because I think Calgaryans were expecting, myself included, that you know we're gonna we went from a $1.1 billion budget three, four, five years ago, to a five billion dollar budget, and to see that we're just patching the holes a little bit, maybe just speak a bit about that. Um what do it take?" }, { "speaker": "SPEAKER_22", "start": 3603.725, "end": 3679.925, "text": "No, thanks very much for the question. So I I think it's a couple things. It's going to take the investment levels, which we identified within the ten-year capital plan. So we'll be having that discussion here later this month and into the fall on actual investment for the next four years. And it's going to take dedication of resources, which in an area like our utility, we've we've made that change as part of the recommendation from the independent panel of creating a dedicated water department and hiring a chief operating officer for the utility. And then finally, it is going to take time. It's going to take that continued effort of that investment over time, working within our financial capacity, working to bolster our industry capacity to deliver on that, and honestly, just not taking our foot off the gas for the next number of years. The target residual risk rating is three years." }, { "speaker": "SPEAKER_15", "start": 3680.705, "end": 3695.145, "text": "You mentioned water and obviously that's near and dear to everybody's heart, just given what happened uh late last year. It is the capital infrastructure across the whole portfolio extensive? Like water obviously is critical, and I'm just trying to think as we think through budget. Um" }, { "speaker": "SPEAKER_15", "start": 3695.785, "end": 3722.725, "text": "you can err on the side of your sp you you see that you want to get it to your spending as much as possible everywhere when you're not targeting the right thing. So how do we know what's your thought process as administration that the real, real, real key ones that have huge impact? Um capital is being spent there, it's a priority. And we still may have extensive, but at least we're thinking about it versus just a shotgun approach, spend everything as much as possible, particularly given that the exponential change in capital spend from prior budgets." }, { "speaker": "SPEAKER_22", "start": 3723.045, "end": 3790.025, "text": "Uh no, thanks very much. This is a great segue from a conversation we had uh 18 hours ago uh as we presented our uh uh corporate asset management plan and our tenure capital plan to infrastructure and planning committee yesterday. So within the city's uh asset base of $155 billion current replacement value of assets, uh about $20 billion of that is considered critical infrastructure. And that uh is primarily within our drinking water, bridges and structures, transit and information technology assets. Uh so that is where our focus is. We've tied that then into our tenure capital plan, highlighting uh specific in uh infrastructure programs that will address uh the need to continue to invest in those critical assets to continue to address the uh the risk around capital infrastructure. So between tying our risk reporting and our asset management program and our capital planning program in with our four year budget and business planning process, I think that's really the connection that we're making to focus in on what's going to make the biggest difference for Calgaryans." }, { "speaker": "SPEAKER_15", "start": 3791.025, "end": 3791.405, "text": "Perfect." }, { "speaker": "SPEAKER_15", "start": 3791.665, "end": 3808.505, "text": "Uh attachment two, uh for example, page nine of fifty-six, it it y y all of that. You actually go through all the um capital risk, infrastructure risk, employee experience, technology disruption, and I found it very extremely useful, but quite a few had brackets or TBD. So so our number one risk" }, { "speaker": "SPEAKER_15", "start": 3809.025, "end": 3838.285, "text": "Yeah, red, red, flashing lights is asset integrity, quality, infrastructure risk, and the desired range, desired tolerance is TBD. And the ones underneath a little less relevant. Maybe just just talk through that. Like what we're targeting towards something, but you mentioned our goal as a medium. Is that maybe look to you, say, oh duckworth, like is is when comments like that, is that clearly the intent of the administration? Absolutely, this is core when you see a TBD. How do we how do we reconcile those without having firm sort of this is our goal, we're gonna get to it." }, { "speaker": "SPEAKER_18", "start": 3840.405, "end": 3841.965, "text": "I'll actually look to my team to" }, { "speaker": "SPEAKER_15", "start": 3841.965, "end": 3842.185, "text": "Thank you." }, { "speaker": "SPEAKER_18", "start": 3842.145, "end": 3843.025, "text": "answer that." }, { "speaker": "SPEAKER_22", "start": 3843.445, "end": 3879.005, "text": "Yeah, so so maybe if I could just add a first comment. So the reason uh kind of that that desired range for assets in poor, very poor condition is where it is, is uh we just released uh the 2026 corporate asset management plan. Our intent is when we come back uh later this year, uh the next update is we would be in a better position to identify what that uh desired range for appetite intolerance is for our asset condition. Uh, and perhaps even uh look at better risk metrics, maybe focusing on some of our critical assets rather than the entire uh asset base as well. So we'll uh continue that conversation as as we mature." }, { "speaker": "SPEAKER_15", "start": 3880.005, "end": 3887.845, "text": "Great, thank you. Moving over to uh uh attachment seven, and it was just really that as we carved out um" }, { "speaker": "SPEAKER_15", "start": 3888.245, "end": 3890.645, "text": "Um cyber from technology risk." }, { "speaker": "SPEAKER_15", "start": 3891.905, "end": 3899.445, "text": "Technology risk both of them improved. I think it was. I'm just gonna go, what's the trend? It was on the far right is severe, and then at the the bottom on the x axis." }, { "speaker": "SPEAKER_15", "start": 3900.145, "end": 3909.425, "text": "Both technology and cyber moved down. So so by it used to be sort of the top right red, and then it moved sort of to the left, and not doing it justice, but" }, { "speaker": "SPEAKER_15", "start": 3909.885, "end": 3922.665, "text": "Ultimately, I'm just trying to understand when you look at these metrics, every risk rating either maintained or increased. So, for example, dependency on external vendors actually went up, but yet our severity went down. So I would have expected that" }, { "speaker": "SPEAKER_15", "start": 3923.325, "end": 3929.545, "text": "at a minimum it would have maintained. So maybe just talk through that, that it's now down a ranking level," }, { "speaker": "SPEAKER_15", "start": 3929.845, "end": 3931.445, "text": "but yet our risks are" }, { "speaker": "SPEAKER_15", "start": 3932.345, "end": 3934.865, "text": "higher than they were in twenty five." }, { "speaker": "SPEAKER_24", "start": 3938.065, "end": 3950.345, "text": "Thank you for the question. And I think I think really we um when we look at some of those, in particular the vendor risks, it's really about the stability of those vendors and our ability to influence things like pricing" }, { "speaker": "SPEAKER_24", "start": 3950.685, "end": 3952.145, "text": "and" }, { "speaker": "SPEAKER_24", "start": 3952.345, "end": 3953.165, "text": "their upgrade" }, { "speaker": "SPEAKER_24", "start": 3953.325, "end": 3957.325, "text": "and how those upgrades impact our environment. And I think overall," }, { "speaker": "SPEAKER_24", "start": 3957.745, "end": 3959.805, "text": "the risk the technology disruption" }, { "speaker": "SPEAKER_24", "start": 3960.265, "end": 3961.085, "text": "has gone" }, { "speaker": "SPEAKER_24", "start": 3961.505, "end": 3962.165, "text": "down" }, { "speaker": "SPEAKER_24", "start": 3962.945, "end": 3967.885, "text": "whereas some of those individual factors have gone up. So it's sort of" }, { "speaker": "SPEAKER_24", "start": 3968.065, "end": 3969.845, "text": "balancing out, if that makes sense." }, { "speaker": "SPEAKER_15", "start": 3972.145, "end": 3975.145, "text": "That's interesting, because if the risks the risk has gone down." }, { "speaker": "SPEAKER_15", "start": 3977.045, "end": 4004.545, "text": "We reduce the impact. So I totally would agree if the almost certainty went from greater than 90, so this is on attachment two, page six, almost certainty to likely. I would I would concur with that. But what I've just heard is the impact is still material. We lose Microsoft Teams for a week, you know, everybody's down. So so maybe just I'm just questioning that that reduction in risk uh from severe to significant. I would expect the other way based on that comment. Am I am I misinter misinterpreting?" }, { "speaker": "SPEAKER_15", "start": 4005.045, "end": 4017.505, "text": "Seeing we we've improved, so therefore it's it's not going to happen as often, but but the reduction in risk was the impact to the organization. So that means we've done something else. Maybe just speak to what we did in the six months to get it from severe to significant." }, { "speaker": "SPEAKER_24", "start": 4017.845, "end": 4021.765, "text": "I think I think the separation of cyber and technological disruption" }, { "speaker": "SPEAKER_24", "start": 4022.325, "end": 4058.285, "text": "Really like one when they were all together, then the the two risks combined were extensive. It was high likelihood, high impact. I think by pulling, and I'll let Director Tellotson speak to this, I think by pulling the cyber risk out, what we're saying is that we have some really good controls in place for our infrastructure and our and our technology environment. The impact is less because, for example, the the permitting example that I used, it was a significant impact for two weeks on a particular area of the organization whereas cyber would affect the whole organization. Let Mike speak to that." }, { "speaker": "SPEAKER_11", "start": 4059.565, "end": 4078.625, "text": "Yeah, and and really you you you said it pretty pretty cleanly there. Uh you take cyber out of that risk, it just lowers it because of of how extensive the cyber risk is. That that's really what that is. And and we've had discussions about that, that the technological uh disruption risk um uh uh just lowers by removing cyber from it." }, { "speaker": "SPEAKER_15", "start": 4078.765, "end": 4101.525, "text": "You can see the confusion. Um the impact of a cyber incident is severe, and yet because now we've divided it by two, that impact is still severe. You're saying it's now significant. So so just maybe a scenario analysis is I click I'm guilty as charged. I click that phishing email, and the severity is the whole system shuts down. Just because now we have that way now that we have it split into ten risks." }, { "speaker": "SPEAKER_15", "start": 4102.065, "end": 4108.225, "text": "The severity is still material. I I just w when we start moving to significant moderate, all of a sudden the attention turns off. And we just heard" }, { "speaker": "SPEAKER_15", "start": 4108.785, "end": 4120.325, "text": "uh GM speak, we're we're pivoting, we're hiring a new team and I love that. And now we're saying oh no, it's actually not as the consequences aren't as as material. Just what am I missing there from a" }, { "speaker": "SPEAKER_11", "start": 4123.805, "end": 4165.145, "text": "So while the the risk is extensive and the potential impact could also be extensive, we do have um uh you know tools and measures and controls in place that then reduce that extensive nature. Uh it's the residual risk could be um uh from extensive to significant or severe or something like that, right? Um is it possible that one action, you know, can have that big impact? It is, and it's also possible that it might not, depending on the controls that are in place and and and those types of things. So it's uh that that's the tricky part of this world is it's not quite as linear as as maybe some other areas. So um" }, { "speaker": "SPEAKER_11", "start": 4165.645, "end": 4184.725, "text": "The the different measures and the different controls you put in place can reduce the risk. And that's what we're talking about when we our objective is to move to high risk by these investments and by you know hiring new people and different tools in place and stuff like that to uh reduce the inherent risk to a high." }, { "speaker": "SPEAKER_15", "start": 4185.565, "end": 4186.145, "text": "uh" }, { "speaker": "SPEAKER_11", "start": 4186.145, "end": 4187.265, "text": "That made much sense, but" }, { "speaker": "SPEAKER_15", "start": 4187.385, "end": 4209.765, "text": "I I st uh I'll I'll I'll get off beating this dead horse. I uh my struggle is, and maybe that's this way, what investments have we made in the last six months to justify um technological disruption to go from severe to significant? If it's only the separation out of cyber, okay. Is it what investments have we made to allow for the severity? So obviously you've put belts" }, { "speaker": "SPEAKER_15", "start": 4210.745, "end": 4217.385, "text": "and suspenders on our system. What investments in the last six months to justify the reduction in risk impact?" }, { "speaker": "SPEAKER_11", "start": 4218.005, "end": 4240.645, "text": "I think I'll have to leave the investments on the technological disruption side to Director Bradley. Uh we have made investments in the cyber program in the last six months based on the budget that was approved in November last year at adjustments. Um specifically, what those are, I'm I'm a little bit hesitant to talk about that in open session. So um, but uh council was very supportive in November, and that has been helpful to our program." }, { "speaker": "SPEAKER_15", "start": 4240.705, "end": 4258.085, "text": "We can certainly pick that up. And then maybe just finally, um you know risk across the organization. I think we just heard GM Flowen speak about getting buy-in across jurisdictions, infrastructure jurisdictions. I know ERM last was talking about doing lunch and learns and going through the organization. So so so maybe" }, { "speaker": "SPEAKER_15", "start": 4258.885, "end": 4266.345, "text": "You know, CO Duckworth, just sort of speak to the the culture change. I mean ultimately it can't be led by one. Uh there has to be everywhere. And and" }, { "speaker": "SPEAKER_15", "start": 4266.985, "end": 4277.965, "text": "you know, with respect to risk, is this one of your priorities when you speak as NLT? Is this something we're putting your shoulder into? And is this going to permeate and how has it gone into the whole organization uh a risk culture?" }, { "speaker": "SPEAKER_18", "start": 4279.705, "end": 4282.025, "text": "That's a great question. So" }, { "speaker": "SPEAKER_18", "start": 4284.245, "end": 4307.425, "text": "a few initiatives that we've undertaken over the last couple years, of course, is one is to remove to move the ERM team to the CEO's office. Um that alone signals to the organization the importance of risk. Uh secondly, I would say the executive management team, the executive leadership team has uh evolved how we monitor and uh" }, { "speaker": "SPEAKER_18", "start": 4307.985, "end": 4350.105, "text": "We how we monitor risk and try to make risk-based decisions to the best of our ability. We're nowhere near where we need to be yet. I would say two or three years ago I couldn't I knew we needed to do something, but I couldn't quite see what it was gonna look like. I think the fog has kind of cleared now and I can kind of see where we're going. Um we have really good, healthy discussions at the executive leadership team now around risk that we didn't used to have. For example, um we had Calgary Fire come in a few weeks ago just to talk about like what does the executive leadership team to need to know about Calgary Fire? What's your biggest risk that we need to pay attention to? Do you have what you need? We're doing that with kind of all of our risks. Um and so we haven't really done that before in the past. The second thing was you're trying to create a culture." }, { "speaker": "SPEAKER_18", "start": 4350.945, "end": 4385.445, "text": "Where employees feel safe to speak up. They need to escalate things to their supervisor, to whomever, as soon as they see something that may be wrong or potentially wrong. And so we have been moving the needle in that regard. When we do our employee satisfaction surveys, we can see that we're moving the trend, that people are starting to feel more comfortable speaking up about whatever it may be. Again, so it's about the third thing would be about creating a culture where staff feel comfortable and recognize that is actually their responsibility to speak up when they see things. So those would be a few things I would think that over the last few years where we've kind of moved the needle." }, { "speaker": "SPEAKER_15", "start": 4385.625, "end": 4386.805, "text": "That's great. Thank you so much. Thank you." }, { "speaker": "SPEAKER_12", "start": 4386.805, "end": 4417.385, "text": "Maybe I'll add into CAO Duckworth's um comments. We've also started to initiate some new systemic changes around key management elements of which uh one of the five is risk. So every management team would have that as a key element of all their management decisions, is to consider risk. So we're pushing that out through the organization to really operationalize uh the focus on risk and performance and to make sure every team at every level uh considers that in their decision making and provides a line of sight up to management. Yeah." }, { "speaker": "SPEAKER_10", "start": 4419.005, "end": 4421.705, "text": "Thanks. And did you want to go in camera for the rest of that answer? That" }, { "speaker": "SPEAKER_10", "start": 4424.245, "end": 4427.365, "text": "well, I have to decide if we're gonna move this item into in camera. So" }, { "speaker": "SPEAKER_10", "start": 4427.705, "end": 4429.265, "text": "everything so far has been public." }, { "speaker": "SPEAKER_10", "start": 4429.705, "end": 4431.225, "text": "Does anyone have do you have in camera questions?" }, { "speaker": "SPEAKER_10", "start": 4431.905, "end": 4434.305, "text": "So did you want us to move in camera after Rob?" }, { "speaker": "SPEAKER_10", "start": 4437.305, "end": 4438.665, "text": "Do you want to use it for the one later today?" }, { "speaker": "SPEAKER_10", "start": 4440.705, "end": 4444.785, "text": "The I the do you want to take your question and go in camera for the later item today on technology?" }, { "speaker": "SPEAKER_10", "start": 4445.665, "end": 4449.105, "text": "Rob's up next, but think about it. Rob's going next and then we'll go to" }, { "speaker": "SPEAKER_10", "start": 4449.765, "end": 4450.925, "text": "Counselor Ward." }, { "speaker": "SPEAKER_20", "start": 4452.705, "end": 4466.665, "text": "Um on the technology and data limitations, uh do we have an idea how does the city of Calgary's cyber risk assessment compare to municipal peers and Calgary private industry organizations and institutions, like just generally?" }, { "speaker": "SPEAKER_11", "start": 4469.765, "end": 4473.965, "text": "So that's that's a real tough question to a uh to answer because uh you know" }, { "speaker": "SPEAKER_20", "start": 4473.965, "end": 4474.205, "text": "Private" }, { "speaker": "SPEAKER_11", "start": 4474.205, "end": 4529.585, "text": "Apples and oranges and all those kinds of things, right? We are in contact with uh many organizations, private and public, uh, in talking about our programs. Um and you know, as much as we can compare notes on on you know how you do this and how you do that, uh we do. Um we're also very closely connected to Cyber Alberta and to the uh the federal government cyber program. Um and and of course we we follow um best practices in industry such as NIST and and those types of things in development and assessment of our programs. Uh we're in close contact uh contact with um Toronto and talk about you know our programs and how they compare. It's just a little bit difficult to say, you know, we're we're always gonna say we're better than everybody, of course. Um but uh it's it's hard to compare um just because of the different services, the different uh structures and and those types of things. So" }, { "speaker": "SPEAKER_20", "start": 4529.585, "end": 4529.725, "text": "right." }, { "speaker": "SPEAKER_11", "start": 4529.725, "end": 4539.525, "text": "Um but but we do, you know, benchmark as much as we can to to um not only uh compare our systems but to learn as well from other uh organizations." }, { "speaker": "SPEAKER_20", "start": 4539.605, "end": 4578.365, "text": "Okay. You you kind of led right into my follow-up question, which is uh in February 2025, the Calgary Herald published City of Calgary receives prestigious award for exceptional use of data, in which it was stated that uh Calgary's position as a leading Canadian municipality incorporating data into decision making and policy and demonstrates the city's commitment to the best interests of residents. So it's kind of confusing. Like, how does that square with the technology and data limitations that are noted? We're saying we're the best, but now we're saying we have issues." }, { "speaker": "SPEAKER_24", "start": 4580.925, "end": 4601.825, "text": "Thank you for that question. And I think that's the WWW, I don't remember what that stands for, but it was that certification, and certainly it recognized the great work that had been done to date. That doesn't mean that we are over the finish line. We have stood up a data and analytics hub. We're working on data governance and we are continuing to improve our data practices." }, { "speaker": "SPEAKER_20", "start": 4602.505, "end": 4602.925, "text": "Okay." }, { "speaker": "SPEAKER_20", "start": 4603.065, "end": 4603.505, "text": "Thank you." }, { "speaker": "SPEAKER_20", "start": 4604.625, "end": 4605.025, "text": "I'm good." }, { "speaker": "SPEAKER_20", "start": 4605.405, "end": 4605.745, "text": "Chair." }, { "speaker": "SPEAKER_10", "start": 4607.185, "end": 4611.445, "text": "Okay, thanks. Alright, we're gonna have a motion by Counselor Pancelopoulos to go in camera" }, { "speaker": "SPEAKER_10", "start": 4611.965, "end": 4612.685, "text": "uh quickly." }, { "speaker": "SPEAKER_10", "start": 4613.105, "end": 4613.705, "text": "Uh" }, { "speaker": "SPEAKER_10", "start": 4614.505, "end": 4616.545, "text": "all in favor or do you want to switch to Eastcribe?" }, { "speaker": "SPEAKER_19", "start": 4616.545, "end": 4618.305, "text": "Well yeah, we'll have to do an East Card vote for this, please." }, { "speaker": "SPEAKER_19", "start": 4628.925, "end": 4630.945, "text": "Councilor Jameson, your vote, please? Thank you." }, { "speaker": "SPEAKER_19", "start": 4631.325, "end": 4632.605, "text": "Councilor Pantozopoulos. Yes." }, { "speaker": "SPEAKER_19", "start": 4632.845, "end": 4634.505, "text": "Thank you. And public member Niker." }, { "speaker": "SPEAKER_04", "start": 4635.145, "end": 4635.625, "text": "Yes." }, { "speaker": "SPEAKER_19", "start": 4636.065, "end": 4636.985, "text": "Thank you. All the votes are in." }, { "speaker": "SPEAKER_10", "start": 4641.045, "end": 4644.145, "text": "Motion is carried unanimously. Okay, so we're gonna go on camera uh" }, { "speaker": "SPEAKER_10", "start": 4644.725, "end": 4648.585, "text": "CPC. You'll have to step out for a little bit. We'll call you back in when we're ready for you." }, { "speaker": "SPEAKER_13", "start": 7020.525, "end": 7026.445, "text": "The Audit Committee is about to reconvene in open session. Please make your way back to the Engineering Traditions Committee Room." }, { "speaker": "SPEAKER_10", "start": 7275.285, "end": 7276.025, "text": "Roll call, please." }, { "speaker": "SPEAKER_19", "start": 7279.065, "end": 7280.765, "text": "Thank you, Chair. Counselor Jameson." }, { "speaker": "SPEAKER_19", "start": 7283.365, "end": 7284.285, "text": "Counselor Clark." }, { "speaker": "SPEAKER_19", "start": 7284.905, "end": 7286.245, "text": "Counselor Pantozo?" }, { "speaker": "SPEAKER_19", "start": 7287.025, "end": 7287.925, "text": "Public Member Kim?" }, { "speaker": "SPEAKER_19", "start": 7288.925, "end": 7289.905, "text": "Public Member Niker." }, { "speaker": "SPEAKER_10", "start": 7290.145, "end": 7290.525, "text": "Yeah." }, { "speaker": "SPEAKER_19", "start": 7290.965, "end": 7293.605, "text": "Public member McDonald Councilor Ward" }, { "speaker": "SPEAKER_19", "start": 7295.205, "end": 7296.265, "text": "and Councilor Yes." }, { "speaker": "SPEAKER_10", "start": 7296.525, "end": 7296.865, "text": "Here." }, { "speaker": "SPEAKER_19", "start": 7296.985, "end": 7297.905, "text": "Thank you. We have quorum." }, { "speaker": "SPEAKER_10", "start": 7298.405, "end": 7302.105, "text": "Uh Rise okay, thank you. Uh yeah, rise and report." }, { "speaker": "SPEAKER_10", "start": 7303.045, "end": 7304.705, "text": "Karen what do we say, Josephine?" }, { "speaker": "SPEAKER_10", "start": 7305.425, "end": 7307.185, "text": "Uh public member necker. All in favor?" }, { "speaker": "SPEAKER_10", "start": 7308.125, "end": 7309.305, "text": "Motion carried unanimously." }, { "speaker": "SPEAKER_10", "start": 7309.625, "end": 7313.585, "text": "Uh that takes us back to 7.2, which will be moved by" }, { "speaker": "SPEAKER_10", "start": 7313.925, "end": 7314.965, "text": "uh Councilor Clark." }, { "speaker": "SPEAKER_10", "start": 7315.345, "end": 7316.025, "text": "So moved." }, { "speaker": "SPEAKER_10", "start": 7316.405, "end": 7320.725, "text": "Uh we now have Councillor Pancelopoulos to introduce an addition." }, { "speaker": "SPEAKER_15", "start": 7321.525, "end": 7323.505, "text": "Thank you so much, Madam Chair." }, { "speaker": "SPEAKER_15", "start": 7324.765, "end": 7364.025, "text": "Yeah, this is uh a recommendation just to include as part of the recommendations. Uh it's a brand new corporate risk that's been identified, cyber, and that's uh very important, super strategic. And uh the journey of a thousand miles begins with a single step, and I think it's just very imperative for not only council but audit committee, just that regular check-in. And I know great work is being done and will continue. It'll always be a journey with technology changes, but I think something like this is just a little more keeping it front and center, so it's not once a year saying, Oh, by the way, just recognizing how how uh quickly things are changing. So just an addition um I think is important for audit to have, which then obviously flows up to council and Calgaryans as well." }, { "speaker": "SPEAKER_09", "start": 7373.465, "end": 7373.925, "text": "John," }, { "speaker": "SPEAKER_09", "start": 7374.605, "end": 7374.965, "text": "it" }, { "speaker": "SPEAKER_09", "start": 7375.245, "end": 7378.765, "text": "is this uh on an ongoing basis or is this like a one time thing or" }, { "speaker": "SPEAKER_15", "start": 7378.845, "end": 7406.465, "text": "Thank you for that. To be determined. It's brand new. It's a new corporate risk. Not a new corporate risk, it's certainly that attention. So I think come September, you know, we'll sort of see how it goes. It's not a makework project, but let's just sort of see keep it front and center. Um and then make a determination at that time, whether it's something that's always a standing item. But uh right now it's once, but we'll can make that determination uh in in a few months' time." }, { "speaker": "SPEAKER_19", "start": 7419.405, "end": 7420.105, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 7423.105, "end": 7427.105, "text": "Motion is carried unanimously. 6-0. Thank you very much for your presentation and your time today." }, { "speaker": "SPEAKER_19", "start": 7427.105, "end": 7428.905, "text": "Oh, apologies, we still have to vote on the main motion as" }, { "speaker": "SPEAKER_10", "start": 7428.905, "end": 7429.765, "text": "In motion, sorry." }, { "speaker": "SPEAKER_10", "start": 7429.985, "end": 7432.205, "text": "You scribe to vote again for the full." }, { "speaker": "SPEAKER_10", "start": 7433.545, "end": 7434.605, "text": "I'm just trying to raise." }, { "speaker": "SPEAKER_10", "start": 7435.445, "end": 7435.765, "text": "There you go." }, { "speaker": "SPEAKER_19", "start": 7441.265, "end": 7441.985, "text": "all the votes are in." }, { "speaker": "SPEAKER_10", "start": 7442.145, "end": 7442.865, "text": "This is by the vote." }, { "speaker": "SPEAKER_10", "start": 7444.385, "end": 7448.225, "text": "Motion is carried unanimously. Thank you very much. Police Commission, come on down." }, { "speaker": "SPEAKER_03", "start": 7535.605, "end": 7536.085, "text": "Great." }, { "speaker": "SPEAKER_03", "start": 7536.385, "end": 7536.745, "text": "Okay." }, { "speaker": "SPEAKER_03", "start": 7536.985, "end": 7537.505, "text": "Good morning." }, { "speaker": "SPEAKER_03", "start": 7544.545, "end": 7561.165, "text": "Good morning, Chair Wines and Audit Committee members. Thank you for inviting us to present today. I'm Amtul Sadiqi, Chair of the Cal Ree Police Commission. I'm joined by Kelly Ogle, Vice Chair and Finance and Audit Lead of the Commission, as well as Chief Katie McCullen and Harmon Gill from Deloitte." }, { "speaker": "SPEAKER_03", "start": 7562.405, "end": 7570.745, "text": "We also have several subject matter experts from the Cal Ree Police Service, along who can also answer questions as needed. Next slide, please." }, { "speaker": "SPEAKER_03", "start": 7574.345, "end": 7657.105, "text": "As requested, I would like to start with a brief introduction to how our board governance structure works and how we ensure the Calgary Police Service is responsive and accountable to the community. The structure of police governance in Alberta is established in law by the Provincial Governments Police Act. The intent of the governance model is to ensure that law enforcement decisions are made without political influence while still ensuring that the police are answerable to the community we serve. The provincial government is responsible for the legislation that governs policing and police governance. The province also establishes regulations and standards that all police services and police commissions in Alberta must meet. Council is responsible for establishing our commission and setting basic rules for our operation through the Calgary Police Commission bylaw. These rules must be consistent with provincial legislation and regulations. Council also approves the total police budget and through city administration oversees collective bargaining with police unions. When it comes to specific police actions, the courts, Alberta Alberta Serious Incident Response Team, and the newly established police review commission review police actions to determine their legality as well as address police misconduct. This brings me to the role of our commission and the police chief." }, { "speaker": "SPEAKER_03", "start": 7658.165, "end": 7693.205, "text": "Our Commission is tasked by the Police Act with providing strategic direction to the police through the development of an annual police budget and service level plan as well as police policies and priorities. We further help set the overall direction of the service through our approval of the police budget allocation and our hiring and evaluation of the police chief. We also have responsibility for the general supervision of the police service. The police act makes the police chief accountable to our board for the financial administration and the day to day operation of the police service." }, { "speaker": "SPEAKER_03", "start": 7694.525, "end": 7713.365, "text": "As part of the governance framework, the police chief also has exclusive responsibilities that she exercises as public office holder. Only she can direct law enforcement and police crime prevention activities. She is also responsible for the day to day administration of the police service and the maintenance of discipline within it." }, { "speaker": "SPEAKER_03", "start": 7713.965, "end": 7726.045, "text": "Our commission reports to both the province and council on policing priorities and service levels, and we are ultimately responsible to the province for our compliance with policing oversight, regulations, and standards." }, { "speaker": "SPEAKER_03", "start": 7728.085, "end": 7745.205, "text": "Similarly, the police service reports on its finances through count to council through both the City of Calgary administration and commission and is responsible to both the province and commission for its compliance with provincial police regulations and standards. Next slide, please." }, { "speaker": "SPEAKER_03", "start": 7748.265, "end": 7757.165, "text": "As requested, the audited financial statements for 2025 have been provided, and I would like to highlight a few things for from them for your committee today." }, { "speaker": "SPEAKER_03", "start": 7757.585, "end": 7790.505, "text": "The service received an increase in government revenue due to the federal government reimbursing any costs incurred by hosting last summer's G7 summit in Canascus. Internal efficiencies and strong budget management also helped ensure that the service did not withdraw funding from the Financial Sustainability Reserve to cover shortfalls created by changes to the photo radar enforcement. However, unspent salaries and wages due to vacancies and recoveries from employees on leave also contributed to not requiring the FSR funding." }, { "speaker": "SPEAKER_03", "start": 7791.125, "end": 7847.865, "text": "This is something that concerns the Commission because it is reflective of a workforce where significant portion of employees are on short and long-term leaves. One impact of this can be seen in the overtime budget, which was substantially overspent despite efforts to reduce it as much as possible. But the greater impact is on our people who have to cover additional workload to compensate for vacancies. It is sometimes something both we and the service are working hard to address. I also want to highlight an anomaly around the service's capital spend rate. While it showed as being just 46% last year, that is a bit misleading. Almost two thirds of the unspent capital funding was earmarked for a new district office in Belvedere and for a new indoor firearms range that is now under construction. The funding for the new district office has been on our books since 2021 and cannot be reallocated because it originated from a developer levy." }, { "speaker": "SPEAKER_03", "start": 7848.665, "end": 7859.025, "text": "The city has yet to even procure land for this facility, but the funding gets carried over each year on our books as unspent capital, artificially lowering our annual capital spend rate." }, { "speaker": "SPEAKER_03", "start": 7859.425, "end": 7860.545, "text": "Next slide, please." }, { "speaker": "SPEAKER_03", "start": 7862.225, "end": 7888.765, "text": "On the risk management front, the police service and our commission implemented an integrated risk management model five years ago. The model has grown a lot in that time and continues to mature. A key change to our risk management approach occurred this year as both the internal audit function was separated, as the internal audit function was separated from the internal controls and risk mitigation area of the service and transferred to the Commission staff team." }, { "speaker": "SPEAKER_03", "start": 7889.345, "end": 7902.305, "text": "This is a shift from a corporate model where internal audit administratively reports to the CEO to more of a government model like yours, where internal audit administratively reports up to the government, governing body." }, { "speaker": "SPEAKER_03", "start": 7902.765, "end": 7917.605, "text": "The goal of this change is to improve the independence of internal audits and to give the board a stronger line of sight into the audit process. Our Commission will also soon be modernizing our approach to governance of the service's risk appetite and tolerances." }, { "speaker": "SPEAKER_03", "start": 7918.545, "end": 7944.265, "text": "In 2025 of the 74 risk mitigation strategies under use by the service, 12 were still in planning, 29 were actively being implemented, 11 were fully implemented, 13 were in a monitoring phase, and 9 were closed as no longer necessary. There has been been significant progress since, and the Commission will be seeing an updated report on these mitigation strategies in September. Next slide, please." }, { "speaker": "SPEAKER_03", "start": 7946.225, "end": 7987.425, "text": "In closing, I want to highlight changes we are making for the next budget cycle to our performance reporting. In the past, performance indicators have been outlined each year in the annual policing plan. This has often resulted in a long list of KPIs rather than a few focused ones. For the 2730 budget cycle, there will be a tiered approach to KPIs where there will be reporting to the public and council on a handful of KPIs that show value for investment. The Commission will then monitor an additional handful of KPIs more related to our function and management of the service, will have additional operational KPIs that are not used for governance reporting unless there is a need." }, { "speaker": "SPEAKER_03", "start": 7987.785, "end": 7993.765, "text": "We believe that this approach will make more meaningful reporting to council and the public more meaningful as well." }, { "speaker": "SPEAKER_03", "start": 7994.085, "end": 7995.245, "text": "Next slide, please." }, { "speaker": "SPEAKER_03", "start": 7997.525, "end": 8005.865, "text": "Thank you again for having us here. We're now hate happy to take any questions. And before we start the the Q ⁇ A's, I just want to add that um" }, { "speaker": "SPEAKER_03", "start": 8006.345, "end": 8017.745, "text": "We're a little bit limited in our time because we were actually supposed to be here earlier, but happy to answer questions for the next 30 minutes and we can go past a little bit if we need to, but happy to provide written answers if needed after." }, { "speaker": "SPEAKER_10", "start": 8017.925, "end": 8025.425, "text": "We may potentially uh break your item to the call of the chair and return you guys in September if we have a lot of questions." }, { "speaker": "SPEAKER_03", "start": 8027.645, "end": 8028.165, "text": "Thanks, Chair." }, { "speaker": "SPEAKER_03", "start": 8029.085, "end": 8030.305, "text": "Okay, thank you very much." }, { "speaker": "SPEAKER_10", "start": 8030.405, "end": 8031.425, "text": "Counselor Jameson." }, { "speaker": "SPEAKER_09", "start": 8034.425, "end": 8034.785, "text": "hi." }, { "speaker": "SPEAKER_09", "start": 8037.185, "end": 8050.685, "text": "So one of the patterns that I'm seeing, and it's not just you guys, it's it's really uh throughout the organization, is just underspending of council approved budgets. Um you you did mention it a little bit there, but so" }, { "speaker": "SPEAKER_09", "start": 8051.265, "end": 8053.925, "text": "the 46%. Sorry, isn't that on?" }, { "speaker": "SPEAKER_09", "start": 8054.645, "end": 8055.525, "text": "Oh, okay, sorry." }, { "speaker": "SPEAKER_09", "start": 8056.285, "end": 8091.765, "text": "So the 46% capital spend rate, spending only half of what is approved on stations, vehicles, and technology. So this underspend pattern, like I said, is very similar to other departments. The difference is CPS, you guys manage your own specific procurement and are are responsible for your own project delays. So how I guess I know you did mention the gun range, but how do we get the money that we approve actually spent in the year?" }, { "speaker": "SPEAKER_09", "start": 8092.545, "end": 8093.685, "text": "that that we approve it." }, { "speaker": "SPEAKER_23", "start": 8094.045, "end": 8102.025, "text": "Yeah, thanks, Councillor, for your question. Uh good morning, everyone. Um, so as the chair kind of mentioned, that that forty-six percent is actually" }, { "speaker": "SPEAKER_23", "start": 8102.885, "end": 8107.885, "text": "it might be what it is today, but by the end of the year, I think we're don't correct me if I'm wrong, it's gonna be about 97%." }, { "speaker": "SPEAKER_23", "start": 8108.785, "end": 8110.765, "text": "And the two biggest pieces on the capital end" }, { "speaker": "SPEAKER_23", "start": 8111.045, "end": 8113.185, "text": "that shows that we aren't spending is the range," }, { "speaker": "SPEAKER_23", "start": 8113.425, "end": 8134.845, "text": "which is on track and op and scheduled to open the first quarter of 2027. And then the Belvedere what is what is it, $35 million approximately. And so that's what puts us at a 46% spend rate. But by the end of the year we're gonna be about I think it's about 97%. And the whole procurement process, uh, counselor, we actually go through the city and we're" }, { "speaker": "SPEAKER_23", "start": 8135.065, "end": 8135.965, "text": "We're s we're" }, { "speaker": "SPEAKER_23", "start": 8136.385, "end": 8141.265, "text": "kind of I w I don't want to say stuck, but we're we have to be compliant with that process through the city." }, { "speaker": "SPEAKER_09", "start": 8141.985, "end": 8158.885, "text": "Um so um if it's showing like that lack of spinning right now is that is that because um there's a lot of construction that's um needs to be still paid out? Like I'm just I'm just reconciling so like that gun range for example, like in the next" }, { "speaker": "SPEAKER_09", "start": 8159.165, "end": 8168.525, "text": "Six months, like basically all the all the contract is gonna be paid out to the GC and then to the other subs. Like, is that where are we are we fifty percent then?" }, { "speaker": "SPEAKER_23", "start": 8168.525, "end": 8168.905, "text": "Yeah, Joe" }, { "speaker": "SPEAKER_09", "start": 8168.905, "end": 8169.185, "text": "Where we" }, { "speaker": "SPEAKER_23", "start": 8169.185, "end": 8171.045, "text": "maybe just jump into the timeline on that stuff?" }, { "speaker": "SPEAKER_16", "start": 8172.665, "end": 8184.485, "text": "Thank you for the question. Um as far as we are knowing and as far as we've checked in, we're still on track to have it done by next summer. Um we're following up with facilities and continuing um continuing monthly check-ins with them to make sure that they're on track." }, { "speaker": "SPEAKER_09", "start": 8185.245, "end": 8188.305, "text": "have they not like been requesting in any money?" }, { "speaker": "SPEAKER_09", "start": 8188.605, "end": 8198.285, "text": "Uh are they front loading all the costs by this point? Like I'm just still wondering like what like w they're gonna need money and why hasn't that money been spent out if we're already halfway there?" }, { "speaker": "SPEAKER_16", "start": 8198.765, "end": 8214.665, "text": "So d as far as we see in finance, it's the procurement delays in regards to when invoicing comes in at the end of um contracts with the uh with contractors. Um that does come in, we update our uh projections monthly and provide them up." }, { "speaker": "SPEAKER_09", "start": 8215.345, "end": 8218.085, "text": "Okay, that's good to know. It's on track. That's uh" }, { "speaker": "SPEAKER_09", "start": 8218.485, "end": 8219.285, "text": "yeah, thank you for that." }, { "speaker": "SPEAKER_05", "start": 8219.705, "end": 8224.845, "text": "I think part of it might be the accrual. What's the what what what financial period you're working with here, Joe? Like" }, { "speaker": "SPEAKER_05", "start": 8225.045, "end": 8229.345, "text": "you're we're probably three months behind of accruals on that on that range. Like you're" }, { "speaker": "SPEAKER_05", "start": 8229.725, "end": 8234.445, "text": "the the the big spend is like you say is going to escalate here in the last nine months of the build." }, { "speaker": "SPEAKER_09", "start": 8234.885, "end": 8235.425, "text": "Gotcha." }, { "speaker": "SPEAKER_09", "start": 8235.765, "end": 8236.225, "text": "Okay." }, { "speaker": "SPEAKER_09", "start": 8237.005, "end": 8240.665, "text": "Uh the second question I have is um uh" }, { "speaker": "SPEAKER_09", "start": 8241.705, "end": 8253.965, "text": "Vacancy driven overtime is a budget pressure for sure on you guys. Um budgeting for positions uh you can't fill, and then paying overtime to cover the gap. Um" }, { "speaker": "SPEAKER_09", "start": 8254.825, "end": 8263.345, "text": "there's other uh departments that that kind of have that that same situation. I'm not gonna say a model, but it's a situation you're in. Um" }, { "speaker": "SPEAKER_09", "start": 8264.105, "end": 8278.885, "text": "What what what's your plan to um like is that actually the plan or is there um uh a plan to is there a better plan to fill those positions and use less overtime or or is it actually more cost effective to use the overtime?" }, { "speaker": "SPEAKER_23", "start": 8279.805, "end": 8342.005, "text": "I would say a bit of both. Um so 19% is what our accommodated membership currently is, 6% that are truly off, 13% uh back doing other other work, other than frontline work. And so we're we're we're looking all at all of the programs that we currently have. We have about a half a dozen when new members come in to help them be resilient and healthy and well. And then if they have to come off, go off, there's about another dozen or so that are there to help them come back and be healthy as well. And so we're just we're looking we're working through that. We're we're looking at the some of our HR processes to see if there are, for example, if there are members who have accommodations that can't work night shift, but they can work in uniform day shift, uh, we're looking, we're looking at that. If they have certain accommodations that they can't go, for example, to certain types of calls, we're trying to manage that. So we've got some restructuring that has just happened in HR, and we've got some individuals looking person by person by person to see how and if we can get those individuals back into patrol cars." }, { "speaker": "SPEAKER_09", "start": 8342.685, "end": 8346.865, "text": "Yeah, because that's really the uh you know that's where we're that's where we're missing" }, { "speaker": "SPEAKER_09", "start": 8347.185, "end": 8350.425, "text": "more officers in the patrol cars like on on" }, { "speaker": "SPEAKER_23", "start": 8350.425, "end": 8394.925, "text": "Yeah, and I can tell you, Counselor, you know, over this past year plus we looked at, you know, our Bureau of Investigative support to see if there was other areas that we could collapse. And we went line by line, team by team. And uh other than starting to collapse some of your subject matter expert files, and I think everybody around the table here knows what what those are, but we just can't do that because they're just as short for other reasons. So some of it is just redeployment, some of it is about the health and wellness, some of it is about hiring the right people also, and uh looking to see to ensure that uh when individuals come to the job, they know what they're going to get exposed to and the things that they're going to see. So I would say that's very, very it's multi-layered, but our ultimate goal right now is the individuals who are off. Can we get a number of them back into patrol cars?" }, { "speaker": "SPEAKER_03", "start": 8396.045, "end": 8403.865, "text": "And Counselor, if I could add, not that this is an excuse. This is actually a problem that we're seeing across the country. This is not isolated to Calgary alone." }, { "speaker": "SPEAKER_09", "start": 8405.925, "end": 8410.585, "text": "Okay. I'm I'm glad that you uh mentioned the the qualified um" }, { "speaker": "SPEAKER_09", "start": 8411.145, "end": 8423.665, "text": "uh officers because hiring the qualified people is probably creates quite a a bottleneck, uh hi you know, finding the right right people. Um so I guess my question is is does the commission" }, { "speaker": "SPEAKER_09", "start": 8424.265, "end": 8433.825, "text": "uh see a solution uh you know is it higher compensation or you know what what what's what will speed up or make it faster" }, { "speaker": "SPEAKER_09", "start": 8434.485, "end": 8438.985, "text": "uh through the pipeline you know how do we how do we speed that up" }, { "speaker": "SPEAKER_03", "start": 8441.045, "end": 8442.685, "text": "I would say that the commission is very approved." }, { "speaker": "SPEAKER_09", "start": 8442.685, "end": 8443.125, "text": "sorry" }, { "speaker": "SPEAKER_03", "start": 8443.125, "end": 8492.225, "text": "Sure, of course. I would say that the commission is very proud of the services recruitment efforts. We're actually known across the country have having higher standards than others, so which is fantastic. We want to keep those higher standards and not lower those. Part of the questions that the commission has been asking from a recruitment is what is the value proposition? What makes Calgary better than a Surrey or, you know, another location that folks might want to go to or Ontario, for example, where the salaries are a tiny bit higher. And so we've been asking the service to come back to us that what makes us different. Part of that is that it's not only on the service, it's for council to support. It's Calgary as a whole to support what makes Calgary a better city. But as of this point, we're quite confident in the recruitment standards that the service has, but we do monitor it on a regular basis to see where the numbers are, what are the marketing tools that they're using, and what can we do as we move into the future." }, { "speaker": "SPEAKER_09", "start": 8492.785, "end": 8503.625, "text": "speaking of marketing tools what what are some of the uh reasons you're giving why calgary is a better city or the best city to be a a police officer in it can you share some of that" }, { "speaker": "SPEAKER_05", "start": 8503.685, "end": 8507.785, "text": "A couple of times I've I've presided over the graduations and" }, { "speaker": "SPEAKER_05", "start": 8508.225, "end": 8508.645, "text": "uh" }, { "speaker": "SPEAKER_05", "start": 8509.585, "end": 8517.365, "text": "police pre m policemen and women from other jurisdictions moved here. They were already police because they could own a house." }, { "speaker": "SPEAKER_09", "start": 8518.245, "end": 8518.605, "text": "Right." }, { "speaker": "SPEAKER_05", "start": 8519.205, "end": 8521.565, "text": "In Toronto, they could never they would never own a house." }, { "speaker": "SPEAKER_05", "start": 8522.365, "end": 8530.745, "text": "So that was that was the driver for a couple of families of people I met. Going back to the question about what the about the pipeline," }, { "speaker": "SPEAKER_05", "start": 8531.225, "end": 8564.365, "text": "there's only a finite number of trained training officers in any pipeline in the country. So we the for every 25 that we put into into the platoon, you need two or three more. Like to make it bigger, we'd need more training officers. There's hard to f they're like hens teeth, I would guess, Chief, as far as training andor bringing new ones in to add to the cohort. It's just there it's sort of like the the snake and the rabbit. There's only so much you can get in it at one time for a while until we can uh build a bigger cohort of trainers." }, { "speaker": "SPEAKER_05", "start": 8564.905, "end": 8565.365, "text": "Correct?" }, { "speaker": "SPEAKER_09", "start": 8567.485, "end": 8567.885, "text": "Okay." }, { "speaker": "SPEAKER_09", "start": 8568.385, "end": 8569.185, "text": "That's a good answer." }, { "speaker": "SPEAKER_09", "start": 8569.865, "end": 8571.565, "text": "You thank you very much for your time." }, { "speaker": "SPEAKER_07", "start": 8575.325, "end": 8575.905, "text": "Public member" }, { "speaker": "SPEAKER_07", "start": 8576.265, "end": 8577.145, "text": "Karen Kim." }, { "speaker": "SPEAKER_07", "start": 8577.745, "end": 8610.145, "text": "Thank you. Thank you for your service and keeping us safe. When you walked in, admittedly, I thought, what's going on? And then I realized, oh, you're on the agenda. I remembered. A few questions. First, a couple from the governance side of things. I noticed in your material that in November you decided to dissolve all of your committees to go to a whole commission to deal with all matters of the board. Just wondering how that's working out. And secondly, how do you ensure that the finance uh and audit matters are sufficiently addressed?" }, { "speaker": "SPEAKER_03", "start": 8611.325, "end": 8645.465, "text": "Thank you, Ms. Kim, for that answer. I think what we were finding that we're commissioners were closely finding that the discussions that we were having at the committee level were spilling it over into our regular meetings. And so I'm not sure if you're aware our our commission meetings can last anywhere from eight to ten hours, depending on what we're discussing. And so what we decided as a recommendation was brought forward for the whole board for approval was to have more that more just discussion was often required than what we were having at our meetings. So what we did was um we have gone to um committee" }, { "speaker": "SPEAKER_03", "start": 8645.765, "end": 8700.505, "text": "Uh committees every week. So we meet every week at the committee level, all of commission meets, and we have much more thorough and efficient discussions, which have led to our meetings actually being a little bit shorter. One of those meetings per month is actually dedicated to finance and audit. And so Vice Chair Kelly Ogle leads that. And so we have specific questions there that are only around finance and risk and audit issues. Having said that, if there are things that spill over into the other meetings around finance and audit, of course we will have that, but there is that one dedicated meeting towards that. What we're finding is that we're finding commissioners who are much more in the know now. They understand all pieces of the commission versus just maybe what committee that they were sitting on. And we're also finding that our meetings are much more efficient, and we're not going for nine or ten hours. We've kind of pulled it back to seven or eight hours now. So we need to work on being a little bit more efficient with that going forward. But for all of us, it's working actually quite well." }, { "speaker": "SPEAKER_07", "start": 8702.105, "end": 8707.845, "text": "Great. And then I noticed uh a comment about um commission turnover. So in October" }, { "speaker": "SPEAKER_07", "start": 8708.345, "end": 8718.765, "text": "uh terms of five of your municipally appointed commissioners will end. So does that mean that they're uh available for renewal or they're done their term?" }, { "speaker": "SPEAKER_03", "start": 8719.825, "end": 8749.905, "text": "If I am correct, out of the five, four are are um appro uh can be renewed. Um one of those is actually our our counselor who sits counselor Wideness who's on our commission. So out of that we have the counselor, of course, the council decides who gets appointed to commission, but out of the other four people, therefore are four up for renewal. One has stated that she will not be coming back at this point. Um, so there will be three. So there is that consistency in history that we can bring back depending on what our skills matrix looks at and what we need to do strategically for the future." }, { "speaker": "SPEAKER_07", "start": 8750.925, "end": 8752.645, "text": "Great, thank you. And then on your" }, { "speaker": "SPEAKER_07", "start": 8752.865, "end": 8755.605, "text": "integrated risk management, I noticed um" }, { "speaker": "SPEAKER_07", "start": 8756.445, "end": 8770.285, "text": "it's on your presentation. Uh if you could back up there's the uh in a uh there are six out of eight corporate risks and only or sorry of your eight corporate risks only two of them are on track and then six out of eight of them" }, { "speaker": "SPEAKER_07", "start": 8770.745, "end": 8778.945, "text": "The mitigation efforts require more support or better effort. So why are six out of the eight risks" }, { "speaker": "SPEAKER_07", "start": 8779.725, "end": 8780.605, "text": "not on track?" }, { "speaker": "SPEAKER_03", "start": 8784.325, "end": 8787.345, "text": "I'll hand it over to Sandra Jacoby to answer that from the service." }, { "speaker": "SPEAKER_25", "start": 8789.885, "end": 8804.225, "text": "Yeah, good morning. Thank you for the question. Uh so I I want to highlight that this report is in relation to 2025. So our reporting will be reflected for 2026 in the fall. So we're talking about the 2025 timeframe, and the" }, { "speaker": "SPEAKER_25", "start": 8805.825, "end": 8820.365, "text": "structure of our reporting in that era had significant leadership changes and process changes. So that has delayed some of the reporting, some of the mitigation strategies, and the progress on some of those." }, { "speaker": "SPEAKER_25", "start": 8821.745, "end": 8822.445, "text": "Indicators." }, { "speaker": "SPEAKER_07", "start": 8823.865, "end": 8827.085, "text": "And then my final question is just as a citizen and just" }, { "speaker": "SPEAKER_07", "start": 8827.645, "end": 8835.105, "text": "uh as a Calgarian, I think about some of the risks that um hit me per most personally, which would be safety." }, { "speaker": "SPEAKER_07", "start": 8835.485, "end": 8837.685, "text": "Um we've seen a lot of traffic." }, { "speaker": "SPEAKER_07", "start": 8838.485, "end": 8843.945, "text": "fatalities, pedestrian fatalities, and you know it's shocking, it's horrifying." }, { "speaker": "SPEAKER_07", "start": 8844.345, "end": 8848.025, "text": "And then we walk around our streets and we see the drug problem that is out there." }, { "speaker": "SPEAKER_07", "start": 8848.325, "end": 8861.325, "text": "So how do you pivot to your organization to address these risks? And the problem and the challenge is they're just cumulative. Like you just have more and more risks and it's not that necessarily things really go away, but how do you" }, { "speaker": "SPEAKER_07", "start": 8861.965, "end": 8865.065, "text": "pivot to these emerging and very live" }, { "speaker": "SPEAKER_07", "start": 8866.505, "end": 8867.125, "text": "risks?" }, { "speaker": "SPEAKER_23", "start": 8869.405, "end": 8890.965, "text": "Every single minute of every single hour of every single day is how and when we have to pivot. We were super fortunate just j to just end the stampede that was uh fairly safe. Um but I can tell you outside of the city, every single night um we were in what we call differential response. We didn't have enough patrol cars to answer calls, is what that means. And so um it's a growing city, as you know." }, { "speaker": "SPEAKER_23", "start": 8891.565, "end": 8927.225, "text": "Uh crime is increasing. Uh the safety concerns in the downtown core. You know how passionate I have been about that and our operation orders that we have. We've just redeployed our resources from several different areas throughout the city into the downtown core where they take ownership of a block or two block two block radius. And so you will see higher visibility, but it's push and pull. And so when we do that, there is impact to other areas. We're working with lots of different partners, we're working with the GOA, we're looking at different pieces of legislation to deal with the social disorder and the mental health and addiction issues and to keep those individuals safe." }, { "speaker": "SPEAKER_23", "start": 8927.825, "end": 8950.025, "text": "As well as the rest of the city. With respect to traffic, uh I talk about that every opportunity I get. And uh even over the stampede we had several incidents where incident where individuals, particularly pedestrians, um for various reasons were were hit and um fortunately some of them have not passed, some of them did, um, but many of them have have been left with life altering injuries." }, { "speaker": "SPEAKER_23", "start": 8950.705, "end": 8985.465, "text": "So we have a we have a strong media presence, we have lots of prevention, we have lots of education, we have lots of intervention. We work with the city of Calgary, we look at infrastructure, we look at legislation, and we're doing our part to ensure that people are safe on our roads as well. We tell people when you get into your vehicle or you're a pedestrian, you have one goal in mind, and that's to get to your destination safely. That responsibility is on you and people need to understand that that is a high risk, as you uh have alluded to, every time people step out onto the streets, and we all need to take responsibility for that." }, { "speaker": "SPEAKER_07", "start": 8987.125, "end": 8989.125, "text": "Great, that's my question. Thank you for your service." }, { "speaker": "SPEAKER_04", "start": 8990.965, "end": 8992.325, "text": "Thanks, Paulo Member Narker." }, { "speaker": "SPEAKER_04", "start": 8993.185, "end": 8994.485, "text": "Thank you, Chair. I'm covered." }, { "speaker": "SPEAKER_23", "start": 8997.925, "end": 8998.285, "text": "Popula." }, { "speaker": "SPEAKER_15", "start": 8999.185, "end": 9015.265, "text": "Thanks so much. Just picking up on that that governance and you started with it and one of my colleagues brought it up about that November change and you know the police commission's unique and the police is by by definition that as council and Calgarians, um" }, { "speaker": "SPEAKER_15", "start": 9016.545, "end": 9027.865, "text": "There's not a lot of insight into it. As an example, you know, I'm not allowed to attend a commission review the minutes and things. But I get it by definition. So the way I get comfort around that is through governance." }, { "speaker": "SPEAKER_15", "start": 9028.025, "end": 9032.865, "text": "And I just really want to poke at the logic behind" }, { "speaker": "SPEAKER_15", "start": 9033.705, "end": 9037.545, "text": "getting rid of committees, and it sounded like to save time." }, { "speaker": "SPEAKER_15", "start": 9039.365, "end": 9044.405, "text": "20% of the budget of the city of Calgary, 25% of the budget of the city of Calgary, every tax dollar goes to fund the police." }, { "speaker": "SPEAKER_15", "start": 9045.965, "end": 9098.445, "text": "Just just talk to me about that decision at a board. Talk to me the rationale, the external consultants. Uh the ICD is the gold standard and one of your commissioners has it and I have it as well. And I've never been on a board where we're going to eliminate it, and that is a best governance practice. So I just really would like to understand the logic, the process, the support, external consultants, why you believe it's solely on time. It gives me a moment's pause. So just if you can go through there, those details. That was a big move. And I guess as a counselor finding out about it in November. And it's it it maybe I should have, and I'm not on the commissions. Again, so I have no line of sight. So now I go to Calgaryans and saying 25% of your budget is a committee that we have once a year come and present. Just walk through that. That one really jumped up. And the way we get comfort is governance. So please just spend a lot of time on that governance piece for council and Calgarians as well. Thank you." }, { "speaker": "SPEAKER_03", "start": 9098.665, "end": 9135.085, "text": "Happy to Council Arstraud and then Vice Chair Ogle will uh pick up. So my apologies if I made it seem like it was time. This is not about a time. This is about making sure that commissioners have the proper knowledge and there's also efficiency to the work that we're doing, number one. Number two, when you're at a meeting at 11 o'clock at night or 12 o'clock at night, you're not making good decisions. It doesn't matter how long you slept in that morning, you just don't have it. And so part of it was for us to move to more strategically to a meeting every week where we could have these conversations in an appropriate manner with all commissioners attending, and so everybody was in the no. When you have a committee member committee, you have" }, { "speaker": "SPEAKER_03", "start": 9135.885, "end": 9189.245, "text": "I'm trying to six or seven of us at that committee meeting. The other you discuss things, of course you're thorough, but that information doesn't get shared in the same thoroughness with the whole commission. And so that was part of our discussion is we had commissioners who wanted to be a part of the full discussions. And that's what we moved to the structure. We have ensured that we keep a specific meeting geared around finance and audit and risk only, and nothing else is discussed, so it's concentrated on that. I apologize if you found out late, but we also have Commissioner Wyness and Counselor Wyness and Counselor McLean, who are actually supposed to be our conduit to council as well to share some of that information. So again, this is not about a time. This is how are we efficient? How do we make sure that we all have the appropriate information at the appropriate time to make the decisions that we need to make? And I understand from a governance model, I completely agree with you. We have a lot of responsibility and we take that very seriously." }, { "speaker": "SPEAKER_15", "start": 9189.645, "end": 9200.065, "text": "So so how do you prevent just a generalist? So th the logic behind having committees in council, Councillor Ward just had to leave for intergovernmental affairs. So he came in and it's our duty as audit" }, { "speaker": "SPEAKER_15", "start": 9200.625, "end": 9245.605, "text": "Members to inform the rest. And and now you've gone to a generalist model. That when we source new commissioners, and I recognize the province does two and the city does three and there's a whole that we would we would target our um commissioners to meet a risk matrice, saying, you know what, I I'm not an expert in HR, but I'm hopefully would hire an expert, hire, bring a commissioner who's an expert in HR. I'm not an expert in legal matters, but I would bring a commissioner. What you've gone to is a generalist model where I'm going uh generalist model in that the commission now, all items are brought to commission with the except of finance. So so from a governance perspective, why is a a generalist model better than targeting commissioners to focus on committees to address those problems?" }, { "speaker": "SPEAKER_15", "start": 9246.885, "end": 9253.545, "text": "And what research and and commitment did the commission do to to uh determine that a generalist model is a better outcome for Calgarians." }, { "speaker": "SPEAKER_05", "start": 9253.545, "end": 9343.645, "text": "I gotta push back a bit on the j just calling it a generalist model. Like we spend every Thursday from noon till two in the afternoon on a specific part of what would have happened at the committee level in the past, of one of those three meetings a month being finance and risk. I d I don't understand where where you think it's generalist when it then the the material all flows up to the consent agenda, and at the full meeting, if people didn't get a full fulsome view of what was discussed, then they can pull it out of the consent agenda. So I Council Planet Office, I pushed back on this when we voted. And I said, let's but I went along with the majority and we tr and we said we'd try it for a year. We'll go back and discuss this, but I have found this to be much more efficient than the first two and a half years I was on this commission, when you're there at 11 o'clock at night trying to deal with things because the people had already uh part of the commission had already dealt with them, but the rest of the commission wasn't fully aware. So on Thursdays, and I would guess that we've had 90 percent or better attendance since we've gone to the Thursday meetings instead of uh specific uh committee meetings. So the I guess you could say the jury is still a little bit out, but I've may maybe Counselor YNS could weigh in here about the efficiency of these meetings because this seems like pushback that I don't think should is real it's not solidly built, John, like you're calling the" }, { "speaker": "SPEAKER_15", "start": 9343.645, "end": 9349.005, "text": "Counselor Councillor Panasopoulos, and it is solidly built. Twenty-five percent of our budget goes to the political" }, { "speaker": "SPEAKER_05", "start": 9349.005, "end": 9349.645, "text": "The sorry." }, { "speaker": "SPEAKER_15", "start": 9350.305, "end": 9384.665, "text": "Thank you. 25% of the budget goes to the commission. And the commentary around we have to make sure there's governance because as a city council, we have limited line of sight into it by definition, by statute. So these questions that come from audit, and this is our duty and our role. And I apologize if you're taken aback, but we will continue to ask when 25% of the budget is going there. So the generalist comment came that this committee is we have public members and they're experts, and we bring them on as experts. And when my public members speak, I listen. And that was the concept behind when you're talking about and I know there's financial matters across." }, { "speaker": "SPEAKER_15", "start": 9385.525, "end": 9389.685, "text": "But maybe that twelve month pilot, maybe just speak to that. So obviously what are some goals and objectives?" }, { "speaker": "SPEAKER_05", "start": 9389.685, "end": 9394.945, "text": "I could just I'd just like to respond all I was responding to was the comment about being generalist." }, { "speaker": "SPEAKER_05", "start": 9395.405, "end": 9401.085, "text": "That's I think that's a a bit over that that that that's overbought. So I apologize, sir." }, { "speaker": "SPEAKER_15", "start": 9401.105, "end": 9407.985, "text": "That's fair. Twelve month pilot, maybe just speak to uh you're nine months in, eight months in, uh come November." }, { "speaker": "SPEAKER_15", "start": 9408.285, "end": 9433.325, "text": "What goals, what outcomes, what KPIs, what external evaluations do we have to judge it a success or a failure to go back to a more traditional role of a commission? Um do you have those identified? What are they if you could share what uh when we come back in twelve months, we can ask those questions, say, hey, you had these 10 outcomes, you achieved six of them, why did you pivot back? And so on. That's that's new. That's thank you for that. It's a twelve month pilot. I'd just love to" }, { "speaker": "SPEAKER_03", "start": 9433.325, "end": 9511.485, "text": "And can I just go back to just the sorry the generalist comment? So just so you know, we do have a matrix that we recruit from that the commission reviews every single year. So we're reviewing it currently as we go into our recruitment period in September and October. And so part of that matrix is looking at finance people, legal, and also adjusting it for as we move into AI and all those other things that none of us thought about five to ten years ago, we need to make sure that we have that expertise around the table. So we've done that. We have HR experts, we have folks who have been worked for AHS because they understand complex models as well, like policing us. So just so you know, on the on the matrix side, we're very aware of what we need and we'll be reviewing it shortly. In terms of the pilot, it is a 12-month pilot. We've had conversations about reviewing it. Part of it was part of the the interest in doing it was the efficiency. It was to make sure that commissioners were aware of the information that was occurring in all committees. It was to look at the fact that we actually just created, we worked for nine months on a budget that you will be seeing in the fall. That was all created under this new model. This is the best budget that I've seen in seven years that I've been on police commission, and part of that was because of this new model that we've gone to and the input we've had. So we will come back in the fall. We will review it. Our ED is currently working on those inputs and to get that feedback from all 12 of us to see how it's working." }, { "speaker": "SPEAKER_03", "start": 9512.265, "end": 9530.365, "text": "And we'll go from there. I along with I'll be honest, along with Vice Chair Kelly Ogle, I was not in favor of this. I thought we should keep our model that we had. But you know what? Majority rules. And so, you know, you you go with it and you try it out and we will see what happens in November. And I don't know if Counselor Wyness wants to add 'cause she was part of these discussions as well." }, { "speaker": "SPEAKER_10", "start": 9532.005, "end": 9534.365, "text": "I guess I can wear two hats. Um" }, { "speaker": "SPEAKER_15", "start": 9534.605, "end": 9539.305, "text": "I I don't know if that's pro Council Wenders, I don't think you have to. Like your chair of audit. I don't think so. No, I don't know. No, this is no." }, { "speaker": "SPEAKER_10", "start": 9539.305, "end": 9540.745, "text": "I will talk offline with" }, { "speaker": "SPEAKER_15", "start": 9540.745, "end": 9549.925, "text": "Yeah, that's exactly. No, I think this yeah, this is audit. So no, this is uh commission there. Um but certainly by all chair, of course, if you wanted to, but I d I don't require there. Um" }, { "speaker": "SPEAKER_15", "start": 9550.665, "end": 9553.205, "text": "maybe I'll just go if I could." }, { "speaker": "SPEAKER_15", "start": 9553.825, "end": 9584.585, "text": "Oh, the the ED. So it is codified. There's an understanding there's definitely goals and objectives that you'll evaluate against. And I would maybe, you know, take away as an ask and look, I'll work with chair maybe in a closed session as we review that. Again, it just goes to governance. Like we have no line of sight. We get two check-ins for 25% of our budget, and I think that's important to understand. But within all that, and and knowing that there's regulations and provincial and federal mandates, so this outside of my comfort zone, but uh it's an action item maybe for this council to take back. So" }, { "speaker": "SPEAKER_15", "start": 9584.865, "end": 9591.185, "text": "Perfect. The one if I could, I'm just gonna go through uh and I recognize you guys are in a tighter." }, { "speaker": "SPEAKER_15", "start": 9591.905, "end": 9595.465, "text": "Oh, the internal audit. Maybe just speak to that decision sort of pull out. Um" }, { "speaker": "SPEAKER_15", "start": 9595.965, "end": 9615.785, "text": "I I think I saw a staff of six, something like that. So maybe just uh yeah, the just internal that's sounds like a great decision from a governance to to pull it more. Our internal auditors, you know, is is directly to council. Um yeah, just just that that journey. Uh sounds like a good outcome, and and why was that decision made today and and what was the catalyst for it?" }, { "speaker": "SPEAKER_03", "start": 9616.545, "end": 9672.185, "text": "Happy to share information. The internal audit team was part of the unit responsible for the services integrated risk management. And so they answered to the same manager as the staff responsible for advising management on internal controls. And so, from our point of view, we felt that moving the team to the commission staff improved their independence and provides actually a stronger line of sight to the work that's happening in that area. So it we're continuing to move on that. We found that the independence was stronger and better. So we've just made that change recently. We are finding that things are already smoother. What we're doing right now is looking at the framework. And so what does that look like in terms of those two auditors that we have on staff? Not to go into fall questions, but you will also see that in our in our budget, we also talk about hiring extra internal auditors because we will need them to ensure that we're doing the appropriate job that we need to do." }, { "speaker": "SPEAKER_15", "start": 9673.165, "end": 9683.485, "text": "Uh my my internal audit team is jealous. I think you know, uh a ten billion dollar organization uh has not as many. Anyway, that's good. That's a jealousy looking team, she can see her looking her looking her jobs." }, { "speaker": "SPEAKER_03", "start": 9683.485, "end": 9684.605, "text": "They're a very important function." }, { "speaker": "SPEAKER_15", "start": 9684.605, "end": 9736.325, "text": "100%. You know, we spend a lot of time attachment four page uh the one about the risk review, the heat map, and everything's sort of top right. And there's the old saying, if everything's a priority, nothing's a priority. Um and I noticed one uh HR prioritization went up. So maybe just sort of speak to that. Everything's almost certain, everything's extreme. Uh maybe just talk to the commission. How do we how do we improve those? Is or is this just when you deal with policing, this is just the uh the the way we do things. But you know, we just heard our our capital colleagues speak about spending money will reduce this and IT will do this and that. Maybe if you could um and not specific, maybe at a general, uh when everything's dark red, it's uh how do we get to improve that? And and what can council support to help those." }, { "speaker": "SPEAKER_25", "start": 9737.485, "end": 9745.745, "text": "Yeah, for sure. Thank you. Thank you for the question. So funding and resource prior prioritization is definitely our number one risk because" }, { "speaker": "SPEAKER_25", "start": 9746.365, "end": 9766.845, "text": "every call that we go to requires resources. So if resources are impacted, it it simply impacts all of our business operations and our civilian workforce and our sworn workforce. So that's something that is is very top of mind for us and has the most associated mitigation strategies as well. So that's um" }, { "speaker": "SPEAKER_25", "start": 9767.365, "end": 9772.545, "text": "That's that's why it's the highest risk because it does impact our daily operations in everything that we do." }, { "speaker": "SPEAKER_15", "start": 9773.045, "end": 9782.025, "text": "Uh and and the rest, w will the capital spend in dollars address these or or we just have to live with these elevated risks across the portfolio?" }, { "speaker": "SPEAKER_25", "start": 9782.905, "end": 9788.405, "text": "Based on the mitigation strategies, we're we're targeting them and and reducing the risk associated with those." }, { "speaker": "SPEAKER_15", "start": 9788.605, "end": 9789.065, "text": "Perfect." }, { "speaker": "SPEAKER_15", "start": 9789.525, "end": 9846.765, "text": "Um attachment six. I will share with our city colleagues saying, hey, there's a lot of metrics and things we can dig our teeth into. The one that that jumped up to me uh was number six, goal two about adequate training. Number of members surveyed who agreed they have adequate training, and and it's fifty-three percent the goal is fifty-five. You know, given the power and the privilege of a rest of of just that higher level, um it just maybe walk through from a from your own member safety perspective. Thank you, thank you. Um that seems low to me, just just you know, 53% of our members feel they they have the right adequate training to perform their jobs and a critical job, safety. So so maybe just speak to that. Um Am I wrong to think 55 is too low? Why wouldn't it be higher? And what can we do to spend more money? You know, these are again, individuals have the power of arrest, the power of changing lives, the power of saving lives. And and I'm I'm worried, am I is my worry correct that?" }, { "speaker": "SPEAKER_15", "start": 9848.085, "end": 9852.025, "text": "And again," }, { "speaker": "SPEAKER_15", "start": 9852.625, "end": 9856.745, "text": "what can council do to support that and what is the commission doing to increase that number?" }, { "speaker": "SPEAKER_23", "start": 9858.385, "end": 9862.625, "text": "Sandra, do you wanna just talk about how we got to that number and then I'll talk about the training and the safety peace counselor?" }, { "speaker": "SPEAKER_25", "start": 9862.745, "end": 9890.145, "text": "Yeah, for sure. And that is based on the previous baseline number. I would say if we were to talk to our members, they would say that policing is getting increasingly complex. So we're continually chasing the training. And I think that that is really the root of that is that we're doing our best to keep up with the training, but I think the reality is that the complexity of the crime and the work that our our members are doing is moving very quickly in in relation to the training." }, { "speaker": "SPEAKER_15", "start": 9891.865, "end": 9892.785, "text": "Chief you mentioned, yeah." }, { "speaker": "SPEAKER_23", "start": 9892.985, "end": 9948.085, "text": "Councillor, I'll just add you're you're bang on with your comment. Um every time I'm I have the opportunity to be out with the troops, and you know that's on a regular occasion, training is always a topic of conversation. Uh our members want to be the best of the best. They want to be trained the best. As Sandra said, crime is becoming more complex and they just have a hunger to learn and and um and and you know the question that came from Councillor Jameson earlier about you know why the Calgary Police Service, and it's because we have amazing trainers here. We've actually looked to see, there's lots of opportunities for our members to go across the country, but what we're trying to do is bring the experts into the Calgary Police Service that so that more people have that opportunity. But our members just thrive on and on being better, being more knowledgeable, we so that we can have better public trust, we can give a better service. But we do. We have incredible trainers here in the service, and um our our members just want to be better and want to be the best in the country. What and and we're close to that." }, { "speaker": "SPEAKER_03", "start": 9949.105, "end": 9984.905, "text": "And Counselor, from a commission point of view, I would say what we're doing is again not to preview the fall uh conversation, but we're asking for additional resources. Our officers do want training, but when you're working and you're working overtime and you need to call in people, you can't necessarily release all the people you want for training. So you have to be very careful. There's a mandatory training, of course, that everyone needs to go through, but those additional things, there's just not opportunity because you can't, when your team is short, you can't go out on training. And so that's where the commission comes in to look at our budget ask in the fall to ask for increasing not only human resources but other resources that will support some of this work." }, { "speaker": "SPEAKER_15", "start": 9985.345, "end": 10010.365, "text": "Perfect. No, look forward to seeing that and definitely pick up that conversation come uh come November. And then just maybe finally in closing, uh, training, it was a question. This is the key KPI's uh annual policing plan. It wasn't a question and um about you know do you feel like you have adequate, sufficient training? And it was just ex maybe not excluded, but it wasn't it was it's not included in this in this the new KPIs, just a curiosity. So if you go to uh" }, { "speaker": "SPEAKER_15", "start": 10011.505, "end": 10022.965, "text": "attachment seven, page five of your um police service annual policing plan, goal number two, it it didn't include that. So just maybe uh did I miss that or it's not a target if you scroll down to" }, { "speaker": "SPEAKER_15", "start": 10023.685, "end": 10026.865, "text": "I unfortunately have the full path. Yeah, right there. So" }, { "speaker": "SPEAKER_15", "start": 10027.645, "end": 10045.265, "text": "goal number two in 25, that's what I pulled out the 53% in was historic. And we're we're not evaluating that in a new KPI in 26. So maybe just um being crit training so critical, we want to do it more, it's coming in budget. Why was it uh not included in our our uh your KPIs for 2026?" }, { "speaker": "SPEAKER_25", "start": 10046.445, "end": 10075.425, "text": "Yep, thank you for the question. We, as you see there in goal number two, or KPI number two, we really related to these more specific trainings, so respectful workplace training. And uh so that that question in relation to the training is based on the annual survey. So we moved away from some of the one time outcomes based on the survey in this version of the annual policing plan because that is covered in the the survey that the commission" }, { "speaker": "SPEAKER_25", "start": 10075.845, "end": 10076.565, "text": "Producers." }, { "speaker": "SPEAKER_15", "start": 10076.565, "end": 10079.305, "text": "Oh, so this so that question will be asked in another" }, { "speaker": "SPEAKER_15", "start": 10080.085, "end": 10081.025, "text": "context then." }, { "speaker": "SPEAKER_15", "start": 10081.205, "end": 10081.585, "text": "Uh" }, { "speaker": "SPEAKER_15", "start": 10082.745, "end": 10083.665, "text": "the the training." }, { "speaker": "SPEAKER_25", "start": 10083.525, "end": 10086.425, "text": "It's asked in the survey, the commission survey question." }, { "speaker": "SPEAKER_15", "start": 10086.485, "end": 10107.125, "text": "The reason I ask is is assuming it comes to budget and assuming it's approved, I I I personally would uh council would take that as a baseline and the hope would be is and four years later where they're successful. Um right? And if it if it goes to forty percent, okay, we did something wrong. If it goes to 80 percent, we we got something. So so it will be that data will be somewhere in the the ecosystem of uh budget evaluation. Great." }, { "speaker": "SPEAKER_25", "start": 10107.125, "end": 10107.745, "text": "For sure." }, { "speaker": "SPEAKER_15", "start": 10107.745, "end": 10108.225, "text": "Perfect." }, { "speaker": "SPEAKER_03", "start": 10108.285, "end": 10114.985, "text": "We agree with your counsel. We always want to see the numbers go up. When they start to go down, we do question on what's happening and what can we do to improve that." }, { "speaker": "SPEAKER_15", "start": 10115.165, "end": 10118.465, "text": "Absolutely, from a retention, from everything. So what wonderful. Thanks so much." }, { "speaker": "SPEAKER_05", "start": 10118.465, "end": 10128.865, "text": "Finally though also like I i in my if I I I don't know the exact numbers, Sandra, but it's increased steadily since I've been on the commission. Like it COVID was really difficult." }, { "speaker": "SPEAKER_15", "start": 10135.165, "end": 10136.465, "text": "Wonderful. Thanks so much, Madam Chair." }, { "speaker": "SPEAKER_10", "start": 10137.205, "end": 10143.905, "text": "Thanks. I just have a couple quick questions. Um when we look at board governance and accountability, how are we main" }, { "speaker": "SPEAKER_10", "start": 10144.185, "end": 10160.465, "text": "making sure that the right information uh is told to Calgarians and and budget impacts? I'm gonna use Stampede recently. We have announcements that the sheriffs are coming in. Uh, but I didn't see the commission or the police disclose how many sheriffs we actually got to support us during Stampede. Can you disclose that number" }, { "speaker": "SPEAKER_10", "start": 10160.845, "end": 10161.725, "text": "to the public right now?" }, { "speaker": "SPEAKER_10", "start": 10162.145, "end": 10165.025, "text": "Or does it have to remain confidential because they were walking on the street?" }, { "speaker": "SPEAKER_10", "start": 10170.125, "end": 10171.005, "text": "What is the number?" }, { "speaker": "SPEAKER_23", "start": 10171.865, "end": 10174.945, "text": "Uh so uh I I it was uh I think it was eight." }, { "speaker": "SPEAKER_10", "start": 10175.125, "end": 10176.045, "text": "Eight officers." }, { "speaker": "SPEAKER_23", "start": 10176.045, "end": 10191.485, "text": "Eight sheriffs that assisted us and so we typically don't give out our whole numbers as you know for operational reasons. But at the end of the day there were eight sheriffs who came and assisted us. It was a it was the first time for for for a trial period. And so we're gonna debrief that and we're gonna come back and in September. We'll bring our debrief of the Stampede Commission in September." }, { "speaker": "SPEAKER_10", "start": 10191.485, "end": 10197.565, "text": "And you will tell us how many how eight people for a 10 day festival that pretty much runs all day long." }, { "speaker": "SPEAKER_23", "start": 10197.565, "end": 10199.805, "text": "Tell you how they contributed and what the value was." }, { "speaker": "SPEAKER_10", "start": 10199.805, "end": 10214.725, "text": "I look forward to that public presentation. I think it's very important. Uh because there's a lot of uh when we heard that, I know at least my constituents, they assumed we'd be getting fifty or a hundred. And and so in a board governance model where we have clear boundaries, um" }, { "speaker": "SPEAKER_10", "start": 10215.365, "end": 10230.585, "text": "How do we make sure those are actually the truth is in the in the public conversation? Which then takes me into this the 2025 uh implications for policing risk environment. Um, I see gaps in your analysis. Uh bail reform," }, { "speaker": "SPEAKER_10", "start": 10231.045, "end": 10245.985, "text": "big one. It's just gotten worse since we've gone there. You you you mentioned uh in social and number two, increasing population and diversity from international migration, uh, refugees, and limited job market, and yet we still have to advocate for the challenges that is putting on." }, { "speaker": "SPEAKER_10", "start": 10246.745, "end": 10274.725, "text": "Uh, other orders of government, your need to respond to more complex policing environments, and uh when we look at the international relations with Canada and the United States, I I feel like we saw there that could have been maybe more clearly articulated in the risk profile of what you guys were experiencing. Um and I I guess I'm just pushing like I I as a commissioner and I'm wearing two hats, we keep things confidential that I think we should really be telling to the public because." }, { "speaker": "SPEAKER_10", "start": 10275.705, "end": 10304.685, "text": "It helps us advocate uh stronger like crime and and disorder. We're talking about cybercrime uh and and robberies, yet our communities are all feeling it. You're pulling resources, which is creating other issues in other areas. Uh I look at support to different ward offices. Uh community associations are really pushing on us to see support for e-bikes. We're lagging in current risks on there. And so I would really like to see you guys." }, { "speaker": "SPEAKER_10", "start": 10305.285, "end": 10338.765, "text": "Keep up like if I can pull that like communications from the RCMP on e-bikes and uh e-scooters, and yet I'm not seeing that in our social media, I really think we need to be faster on that risk profile. Um, CISA funding, this is I'm just connecting a dot from a presentation that GM Black gave. How are we ensuring that that 8 million for the 13 programs is actually help relieving the risk that you see in that? I'm not seeing the connection in the reporting, and I'd like to see a stronger accountability just because we do it." }, { "speaker": "SPEAKER_10", "start": 10339.245, "end": 10344.445, "text": "Uh, and that was years ago why we started this program, doesn't mean it should continue." }, { "speaker": "SPEAKER_10", "start": 10345.005, "end": 10345.825, "text": "And I" }, { "speaker": "SPEAKER_10", "start": 10346.365, "end": 10355.865, "text": "I I'm I'm curious to see like how do you guys figure out whether it just carries on in perpetuity because it's a nice to have, it's good public relations, versus is it solving the problem?" }, { "speaker": "SPEAKER_25", "start": 10359.005, "end": 10378.445, "text": "We've been talking quite a bit this summer about enhancing the reporting so that it is clearer to understand and to really understand that direct line and what are we what are we getting from from these funds and and these programs that we're involved in. So that is something that we're actively working on right now and we're bringing forward to the commission in the fall a revised reporting structure. Yeah." }, { "speaker": "SPEAKER_10", "start": 10378.505, "end": 10385.245, "text": "And so will we see an annual report and would council potentially see that because that is somewhat of a partnership between the city and you guys?" }, { "speaker": "SPEAKER_03", "start": 10385.585, "end": 10432.465, "text": "So counselor, just so you know, it's it's great timing because Sandra and I just set up a meeting to talk about this next week. To talk about some of these CSIF and the community and how do we report back and are they doing what we wanted and has that changed over time? Because as as we know things change over time. And so we'll be looking at that over the next couple of weeks to see how do we bring back the correct numbers and how do you accurately find that data? Because sometimes, you know, something that you do with a community group doesn't necessarily come back in numbers, right? Or data, it might be something that's spread in a different way. So it's hard to look at concrete information, so we need to look at that in a different manner. But it is being done currently to review with the goal that when the CCIF report comes back next, there will be some revised information in it to commission, and then we'll see how that is shared with council." }, { "speaker": "SPEAKER_10", "start": 10432.565, "end": 10448.645, "text": "And I was pushing back on our social wellbeing department on that it feels good versus it delivers. And and I think Drop in Center is a prime example. I'm gonna applaud them again here because they were day spacing people that were not spending the night there, which" }, { "speaker": "SPEAKER_10", "start": 10449.065, "end": 10463.645, "text": "turned out some of those people were housed. So how do we actually get these people who are receiving the funding to not just give us the feel good report to keep the funding, but actually showcase that they are truly solving the problem that we are funding them for? So I look forward to seeing that. Um I'll" }, { "speaker": "SPEAKER_10", "start": 10464.005, "end": 10476.665, "text": "Don't need an answer because you're working on it. Uh for audit, the culture of the CPS. What is your your um approach to an audit? If we find something wrong, is it to point fingers or is it to say, hey, this will make us better?" }, { "speaker": "SPEAKER_23", "start": 10478.745, "end": 10481.025, "text": "I will just answer that one bluntly. It's to make us better." }, { "speaker": "SPEAKER_10", "start": 10481.165, "end": 10481.585, "text": "Perfect." }, { "speaker": "SPEAKER_23", "start": 10481.585, "end": 10481.805, "text": "Yep." }, { "speaker": "SPEAKER_10", "start": 10482.045, "end": 10486.865, "text": "Because I it I think that's we've done done it took us years to develop a strong culture here where" }, { "speaker": "SPEAKER_10", "start": 10487.085, "end": 10491.245, "text": "when we pull it out, it's not gonna be politicized, it's going to actually just be fixed." }, { "speaker": "SPEAKER_10", "start": 10491.465, "end": 10495.025, "text": "So I hope that's gonna be the culture with this change that we're finding with the audit department." }, { "speaker": "SPEAKER_10", "start": 10495.385, "end": 10497.825, "text": "Okay, um, that's it. I see any other questions?" }, { "speaker": "SPEAKER_10", "start": 10498.205, "end": 10499.505, "text": "See none? All right. Uh" }, { "speaker": "SPEAKER_10", "start": 10500.025, "end": 10501.385, "text": "Public member Kim, would you move this please?" }, { "speaker": "SPEAKER_10", "start": 10501.685, "end": 10501.925, "text": "Great." }, { "speaker": "SPEAKER_10", "start": 10502.105, "end": 10502.465, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 10504.765, "end": 10506.205, "text": "And we will go to East Crub to vote." }, { "speaker": "SPEAKER_10", "start": 10508.025, "end": 10509.405, "text": "And we kept you 10 minutes longer." }, { "speaker": "SPEAKER_03", "start": 10510.665, "end": 10511.145, "text": "That's okay." }, { "speaker": "SPEAKER_19", "start": 10518.565, "end": 10519.325, "text": "Chair, all the votes are in." }, { "speaker": "SPEAKER_10", "start": 10519.585, "end": 10520.225, "text": "This is by the vote." }, { "speaker": "SPEAKER_10", "start": 10522.505, "end": 10524.065, "text": "Motion's carried. 5-0." }, { "speaker": "SPEAKER_10", "start": 10524.385, "end": 10525.925, "text": "Thank you very much for coming." }, { "speaker": "SPEAKER_03", "start": 10525.925, "end": 10526.185, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 10526.185, "end": 10527.265, "text": "Thank you for your patience." }, { "speaker": "SPEAKER_03", "start": 10527.665, "end": 10528.025, "text": "Thank you. Yeah." }, { "speaker": "SPEAKER_10", "start": 10577.465, "end": 10579.545, "text": "And whenever you're settled, you may begin." }, { "speaker": "SPEAKER_06", "start": 10584.205, "end": 10597.365, "text": "So I guess it's good afternoon now. Thank you, Madam Chair and Committee. On behalf of my fellow board members of the Calgary Convention Center Authority, thank you for inviting us to update you on our activities of 2025." }, { "speaker": "SPEAKER_06", "start": 10597.985, "end": 10614.645, "text": "My name is Barry Hench, and I am your chair of the Risk Audit and Finance Committee for the Calgary Convention Center Authority. I'm joined today by Kirby Court, our president and CEO, and to his left, Shermain Chu, our Vice President of Finance and CFO." }, { "speaker": "SPEAKER_06", "start": 10615.705, "end": 10628.765, "text": "2025 was marked by the Calgary Tels Convention Center's implementation of its four-year strategic plan, rooted in three key pillars. Its people, its optimization, and its differentiation." }, { "speaker": "SPEAKER_06", "start": 10629.745, "end": 10636.965, "text": "The board is focused on stewarding this plan and ensuring the organization is well positioned to shape the next 50 plus years." }, { "speaker": "SPEAKER_06", "start": 10637.765, "end": 10649.465, "text": "In 2025, the Calgary Convention Center strengthened our visitor economy by hosting over 200 conventions and business events, generating over $114 million in economic impact." }, { "speaker": "SPEAKER_06", "start": 10650.545, "end": 10656.285, "text": "This strong performance in conventions and business events and the resulting economic and socioeconomic impact" }, { "speaker": "SPEAKER_06", "start": 10656.985, "end": 10664.645, "text": "reflects disciplined management and a clear focus on high value opportunities that benefit both the center and the city as a whole." }, { "speaker": "SPEAKER_06", "start": 10665.765, "end": 10673.885, "text": "Recognizing you all have received a detailed brief, I will now turn the presentation over to Kirby, who will walk you through the 2025 highlights and current state." }, { "speaker": "SPEAKER_17", "start": 10675.085, "end": 10676.005, "text": "Good morning. Next slide." }, { "speaker": "SPEAKER_17", "start": 10686.045, "end": 10690.945, "text": "In fact, we had a 23% increase in non local business delegates over 2024." }, { "speaker": "SPEAKER_17", "start": 10691.685, "end": 10707.145, "text": "These are delegates who used our transportation systems, used our transportation systems, stayed in our downtown hotels, experienced our culinary establishments, and visited world class attractions, all while providing an additional boost to our local economy for positive outcome. Next slide, please." }, { "speaker": "SPEAKER_17", "start": 10708.265, "end": 10732.285, "text": "The business of conventions remains a forward-looking industry. Our sales team continued to sell in 2025 in the year for the year. While being focused on future years, the team worked on a total of 735 new leads as far ahead as 2023, representing over 147 million in potential future revenue and executed 308 contracts as far out as 2029, representing over 28 million in confirmed revenue." }, { "speaker": "SPEAKER_17", "start": 10732.885, "end": 10745.565, "text": "With a 33 to 1 return on economic investment and an 8 to 1 revenue return through base city funding, the CTCC ensures that the City of Calgary's investment delivers lasting economic and community benefits for Calgarians." }, { "speaker": "SPEAKER_17", "start": 10746.205, "end": 10747.225, "text": "Next slide, please." }, { "speaker": "SPEAKER_17", "start": 10749.005, "end": 10762.565, "text": "As we look to 2025 and beyond, our focus is implementing a four year strategic plan, as Barry mentioned in his introduction. Pillar one of our strategic plan focuses on our 160 employees while continuing to evolve a culture that fosters employee development and growth." }, { "speaker": "SPEAKER_17", "start": 10762.925, "end": 10771.985, "text": "Our employees are what set us apart against our competition locally and nationally. They are the secret sauce that has made us successful or operating your facility for over 50 years." }, { "speaker": "SPEAKER_17", "start": 10772.645, "end": 10782.525, "text": "Our second pillar is optimization, ensuring all of our spaces are being utilized and we are aligned with growing Calgary's visitor economy as well as supporting our community and Calgarians." }, { "speaker": "SPEAKER_17", "start": 10783.605, "end": 10802.465, "text": "Supporting community organizations has been heart of the center since 1974. As a civic partner, we will continue to provide that space for community while collaborating to improve their fundraising efforts. Funds that ultimately are returned to Calgary's agencies who do the most important work in our community, taking care of those Calgarians who find themselves in vulnerable situations." }, { "speaker": "SPEAKER_17", "start": 10803.265, "end": 10816.145, "text": "The business events industry is one of the the one that is constantly driving innovation and trends. With this in mind, our final pillar in our strategic plan is differentiation. How can we continue to offer unique experiences to our clients and delegates?" }, { "speaker": "SPEAKER_17", "start": 10817.585, "end": 10819.065, "text": "Behind one slide." }, { "speaker": "SPEAKER_17", "start": 10820.805, "end": 10824.065, "text": "Strategic plan. There we go. Thank you. My apologies. Yes." }, { "speaker": "SPEAKER_17", "start": 10825.105, "end": 10826.285, "text": "Now we're going to go to the next slide." }, { "speaker": "SPEAKER_17", "start": 10827.525, "end": 10828.245, "text": "Thanks for the prompt." }, { "speaker": "SPEAKER_06", "start": 10828.245, "end": 10828.745, "text": "Yeah, no problem." }, { "speaker": "SPEAKER_17", "start": 10829.425, "end": 10860.645, "text": "It only had big red font here to say next slide. In addition to our risk register that's included in your confidential package and today's dynamic operating environment, we face an increasing complex range of risks that can materially impact performance, resilience, and strategic objectives, all fluctuating on a daily basis with varying degrees of client or operational impacts. Thereby, all are monitored closely. Key areas that we're currently including in this list is Alberta separation. The overall client perception of Canada and Alberta." }, { "speaker": "SPEAKER_17", "start": 10861.445, "end": 10874.585, "text": "Canada, the United States, Mexico Agreement, the Cuzma renegotiation, tariffs, airlifts, airline ticketing pricing, lift capacity, destination rollbacks, and most recently strikes. Next slide, please." }, { "speaker": "SPEAKER_17", "start": 10877.005, "end": 10879.345, "text": "Looking beyond 2025 and now" }, { "speaker": "SPEAKER_17", "start": 10879.965, "end": 10902.425, "text": "that we have our strategic priorities in place, we continue to be aligned with priorities set by council. The convention center is a city owned asset, and as responsible stewards, we continue to prioritize proactive and preventative maintenance to extend the life facilities' life cycle while protecting your asset. We're also mindful of ensuring the infrastructure is aligned with the needs of industry, the community of, and Calgarians as a world class convention center." }, { "speaker": "SPEAKER_17", "start": 10903.445, "end": 10915.965, "text": "When we are activated, whether it be local, national, or international delegates, we contribute to Calgary's vibrancy in the downtown core through a visible through a visible security presence, active monitoring, and well-maintained public space." }, { "speaker": "SPEAKER_17", "start": 10917.665, "end": 10941.345, "text": "We help foster a sense of safety and confidence for the visitors and Calgarians, and ActiveCity is a safe city. As the city sits at the intersection of three major plus 15 walkways connected to the C train platform and bordered by three major vehicle corridors and a pedestrian mall, it is uniquely positioned to support the safe and efficient movement of Calgarians and visitors through the downtown core." }, { "speaker": "SPEAKER_17", "start": 10941.945, "end": 10953.425, "text": "With the anticipated reopening of the JR Center and the redevelopment of the Workland Center in 27-28, combined with the revitalization of Stephen Avenue, pedestrian traffic in our immediate vicinity will increase significantly." }, { "speaker": "SPEAKER_17", "start": 10954.125, "end": 10961.925, "text": "As a publicly accessible community hub, we play an important role in supporting and activating our neighborhood for all Calgarians. That is safe and welcoming." }, { "speaker": "SPEAKER_17", "start": 10962.665, "end": 10967.185, "text": "When the city hosts business events at the local level, we support the surrounding businesses." }, { "speaker": "SPEAKER_17", "start": 10967.905, "end": 10982.205, "text": "Exceptional restaurants, the hotels creating economic growth and downtown. In addition, supporting businesses events aligned with diversified industries often leads to local investments in these industries. That in turn can support local Calgarians through job creation." }, { "speaker": "SPEAKER_17", "start": 10983.245, "end": 11002.105, "text": "Our center was Canada's first purpose built convention center in 1974, and we have been trusted and a collaborative partner with the City of Calgary since opening our doors. In closing, we are your convention center, and I look forward to working with council and administration over the next four years as we continue to build a reliable, safe, and welcoming city. Next slide, please." }, { "speaker": "SPEAKER_17", "start": 11002.945, "end": 11005.005, "text": "Thank you for your time and we're happy to take questions." }, { "speaker": "SPEAKER_10", "start": 11008.685, "end": 11010.425, "text": "Thank you. Does anyone have questions?" }, { "speaker": "SPEAKER_10", "start": 11012.725, "end": 11014.165, "text": "Uh Councilor Pensilopoulos." }, { "speaker": "SPEAKER_15", "start": 11014.525, "end": 11062.905, "text": "Well, thanks so much. I get the privilege of serving on the board as a counselor, so I won't go into any of the financials uh because uh the the the committee has addressed them very uh fantastically and there's nothing to bring. The one thing I would, and it's more for an education, maybe you speak a bit about when you talk about risk competition. Uh when I came on the committee, I was quite concerned with the BEMO uh being constructed uh one, two, three years ago, and and the belief that uh, you know, one plus one is less than two, but it's actually one plus one is three. And maybe just speak to that differentiation. You spoke to it a bit, uh, why we are different and why it actually is complementary, just for members of of council uh committee and and Calgaryans as well, that it actually is a net ad and we do sit in a different target market, if you will. Uh that was new to me, and I'd just love to uh explore that with our committee as well. Thank you." }, { "speaker": "SPEAKER_17", "start": 11063.045, "end": 11065.665, "text": "Thank you very much for the question. The um" }, { "speaker": "SPEAKER_17", "start": 11066.025, "end": 11093.465, "text": "it's a question I answer every day. Why too? Why do you have BIMO and why do you have the Teles Convention Center? And we it would be the equivalent of eating Italian food every day. When the client comes to our city, the buyer who buys our building, and we that's the term we use as the buyer, but that meeting planner, the association, the corporate, that when they choose our building, they're choosing it for a specific reason. They want to be the one in the building, not one of three. They want the connected hotels." }, { "speaker": "SPEAKER_17", "start": 11093.905, "end": 11108.785, "text": "They tend to not want to feed their folks every night. They want to push them out to restaurants. So we couldn't be more well positioned. Our buyers and their delegates typically love the arts. We couldn't be more better positioned. When BMO came online, uh" }, { "speaker": "SPEAKER_17", "start": 11109.125, "end": 11125.565, "text": "Like everybody, we were concerned what's going to happen with our business. And I can tell you it's been a force multiplier for us because the attention is on Calgary, not just for BMO Center, the Arena, Workland, JR Center, all of our comp sets across Canada, which there's 26 convention centers in Canada," }, { "speaker": "SPEAKER_17", "start": 11126.025, "end": 11129.645, "text": "all are looking at Calgary going, what's going on over there?" }, { "speaker": "SPEAKER_17", "start": 11130.325, "end": 11136.445, "text": "And I can tell you, we are pulling events in from other destinations, and they are caught flat footed right now." }, { "speaker": "SPEAKER_17", "start": 11137.065, "end": 11227.925, "text": "Will that be forever? Probably not. People are going to have to adjust. But as our as your convention center in our space, in our comp set, which is considered a tier two center, tier one center is Montreal, Toronto, Vancouver, and now BIMO, our comp set, we are leading the pack. We do a benchmark survey every year and we're ahead on all fronts. With the exception of Ottawa, who gets just fed meetings like crazy, as you know, for obvious reasons, because they're they're customers at their front door. But if you look at strictly conventions, we are leading the pack in our comp set when it comes to that. We are a completely different organization than BMO. It is a cornucopy of fruit when you start looking at all the convention centers, but you look at BEMO and our center, and it's an apple and an orange. Two completely different offerings with different outcomes. And our customer measure is when they drop the word boutique in their responses. It's a term we do not use, they use. And so when they say that's the boutique experience, if we hit the mark, that's exactly where we're supposed to be. We're very nimble, and uh, if you're to walk through our building today, you would think that an insurance company bought the building because they have branded the thing to death. Uh and that's exactly what they want to do. They want to make it theirs and call it theirs for the three days that they're here. And they are pushing out to all the tours, all the attractions. This is the model convention that's in house right now. Uh they've gone to BAMP for the day, they're out fishing, fishing on the bow, they're gone to Heritage Park, there's buses streaming out every day out to the attractions. So we're seeing that in full swing. Um, Counselor, I hope that answers your question, unless there's something else you want me to hone in on." }, { "speaker": "SPEAKER_15", "start": 11227.945, "end": 11240.045, "text": "No, that that was that was perfect. And then maybe just finally, maybe about that y y you spoke to it that bit of that anchor, you know, obviously bringing people in for the arts and sports and everything. And maybe just just a real sort of close on that how critical that downtown being, that is your" }, { "speaker": "SPEAKER_15", "start": 11240.365, "end": 11244.625, "text": "Everything everything is downtown, your building's downtown, you're on a C chair. Maybe just a quick sp" }, { "speaker": "SPEAKER_17", "start": 11244.625, "end": 11254.385, "text": "Yeah, everything everything's downtown. I would also echo, and maybe I didn't play that up well on it, so I appreciate the follow-up. Um connected hotels is the secret sauce. Um" }, { "speaker": "SPEAKER_17", "start": 11254.685, "end": 11314.725, "text": "We are the only convention center in Canada that has 1,200 hotel rooms attached. And being a winter city, that's really important. You can walk with flip-flops in February to your convention and not worry about a winter jacket. To our buyer, that is the secret sauce. First question they ask, how many hotel rooms are attached? 1,200? I need to talk to you. So we love going to those international shows where we're selling the convention center to those meeting planners, and it's the first question of their mouth. It's not square footage, it's not, do you have a guest services or how many toilet stalls do you have? Which typically is a very second most important question is uh how many hotel rooms are attached and do they have to walk outside? And what is and if they do walk outside, what's the walking distance? Attrition is really important to these folks. They're bread and butters on registration and being in a room and attending that trade show floor is the other money maker for conventions. So when they can walk to their hotel to take a call and then come back very quickly, the attrition rate drops. But if I'm walking from another part of town, that's maybe a 30 minute walk back to my hotel, the probability of me coming back is pretty slim. Uh, because I'll get back and be jet legged and I'll just stay here. So, yeah." }, { "speaker": "SPEAKER_15", "start": 11316.085, "end": 11317.685, "text": "Thank you so much. Thank you, Madam Chair." }, { "speaker": "SPEAKER_15", "start": 11318.485, "end": 11320.165, "text": "Thank you. Uh public member Kim." }, { "speaker": "SPEAKER_07", "start": 11320.925, "end": 11332.165, "text": "Great, thanks for your presentation. Given that we're at the audit committee and we have a governance role, I just wanted to get a sense of the financial expertise that you have on your audit committee." }, { "speaker": "SPEAKER_06", "start": 11334.045, "end": 11365.085, "text": "Yeah, thank you very much for the question. Certainly an important one and one we talk about regularly. So we do have a board competency matrix that we work from. We do have two CPAs on the Risk Audit and Finance Committee. I am not one of them, although I do have a degree in accounting as well from my previous previous uh schooling. So we do have a good amount of financial expertise honing in on, you know, challenging the results of the uh of not only the budgets but of the actuals and and honing in. But yes, we do have two CPAs on uh on committee today." }, { "speaker": "SPEAKER_07", "start": 11365.585, "end": 11366.645, "text": "Great. And" }, { "speaker": "SPEAKER_07", "start": 11367.185, "end": 11372.545, "text": "uh overall, would you say that business is it back to pre COVID levels? Have we fully recovered from that?" }, { "speaker": "SPEAKER_17", "start": 11374.585, "end": 11405.625, "text": "We've recovered and continue to grow. It was a long journey back, but I will caution that statement with the current landscape that just presented and that daily risk that modif that bounces every day. Phones rings, phones stop ringing, those sorts of things. So it is it is back to business. We are we're s currently slightly ahead of 25 uh year to date. Uh but uh there's uh always caution you have an airline strike that can really impact events, those sorts of things. So it's uh doing what we can control, we're doing great." }, { "speaker": "SPEAKER_06", "start": 11405.845, "end": 11444.245, "text": "If I might just add, so from a board committee perspective, as we report up to our our full board, we were very excited actually just recently to drop 2019 as a comparator. Because during this recasting time since, we've not only, as Kirby said, have we not only just gotten past, it's actually no longer relevant because we've actually grown so much as a result of the great work that was done and some actually important strategic decisions that were made during the COVID-19 pandemic by Kirby and team to continue to sell the center. So yes, we're uh we are actively not worrying about 2019, but we are in uh moving forward phase now." }, { "speaker": "SPEAKER_17", "start": 11445.065, "end": 11448.625, "text": "I may also add on to customer behavior comparing to COVID." }, { "speaker": "SPEAKER_17", "start": 11449.465, "end": 11480.005, "text": "Customer behavior is completely different. Shorter booking windows, dwell times fluctuate at the speed in which the current economy is operating. So it's one of the things we actually watch is dwell time of contracts. When we issue a contract to be signed, how long is that out before it comes back? And we actually watch that time. It's a leading indicator for us as a problem in the force, if you will, or in the market. What their expectations are now versus a 19, couldn't even compare the playbook. And so our team has to be super dynamic and nimble." }, { "speaker": "SPEAKER_07", "start": 11481.785, "end": 11485.805, "text": "And how about like a local buyer? So when I think about the TELAS Convention Center," }, { "speaker": "SPEAKER_07", "start": 11486.725, "end": 11488.085, "text": "uh, just as local," }, { "speaker": "SPEAKER_07", "start": 11488.865, "end": 11493.985, "text": "the drug situation downtown, it looks like it's under construction because the all of the" }, { "speaker": "SPEAKER_07", "start": 11494.485, "end": 11496.845, "text": "Um what used to be Olympic Plaza," }, { "speaker": "SPEAKER_07", "start": 11497.245, "end": 11499.665, "text": "and then there's boarding up with the Glenville Museum." }, { "speaker": "SPEAKER_07", "start": 11500.045, "end": 11502.745, "text": "How have you managed to deal with those challenges?" }, { "speaker": "SPEAKER_17", "start": 11503.965, "end": 11561.745, "text": "Communication, communication. Um locally we're positioned, and that was the ultimate test of the local because they do a lot of town halls. A lot of oil and gas companies will do a town hall, and they don't want to leave the downtown core because of the time to return back to the office. That was the ultimate test. Are they still gonna come? And they came like nothing changed. I would say our largest challenge in the last 365 days was Stephen Avenue. Uh and when you bring a customer in to show them where they're gonna host, and you've got a hole in the ground and the barriers around, the good news is our team's very good at selling. And so, and we sell future, not current day. Current day, yes, but it's a small percentage. We're always two to seven years ahead. And so they can visualize, and we have the visuals to show them when you come back in 2030, this is what it's gonna look like. And they were so excited. But to navigate the local business, that person who contracted five years ago that was not expecting that construction, we worked, and I will give city administration and actually call out the project manager on that mic." }, { "speaker": "SPEAKER_17", "start": 11562.005, "end": 11579.385, "text": "God's name's escaping we I was gonna call it out. Michael Kahn, he should receive a city award. Uh because he took the initiative to sit down with us and say, Okay, so we're gonna do this work. Tell me about your business and he spent a f probably a good half a day with us understanding the full year" }, { "speaker": "SPEAKER_17", "start": 11579.865, "end": 11624.365, "text": "Because we're contracted, the customer is coming, and they're not expecting jackhammering when they're in a prayer session. And so he was so good and we set up a plan that every Tuesday we would meet about what just happened, what is happening, and what is to come. And you can't make noise between these hours, but after that, go crazy. And that was probably the best thing we could have ever done. Not one customer received a discount or a refund. And they honored that throughout. And it did not slow down the process. In fact, it forced them to speed up in some circumstances because they doubled down on the crews when they could make noise. So it was a lot of coordination, a lot of communication, a lot of trust with our clients and saying, trust us. The city's going to support us on this. And they were fabulous through that whole thing. So compliments to city administration on that." }, { "speaker": "SPEAKER_07", "start": 11625.425, "end": 11626.645, "text": "Great. Thank you for your part." }, { "speaker": "SPEAKER_10", "start": 11630.325, "end": 11631.345, "text": "Public member Knacker." }, { "speaker": "SPEAKER_04", "start": 11634.145, "end": 11657.905, "text": "Thank you, Chair. Uh, and thanks for the presentation. Um tell me, uh, what is the level of um collaboration between the um Calgary Tourism uh and yourselves? And then maybe also follow up there, uh, what are you seeing the trend with um both local buyers as well as international buyers looking for uh indigenous experiences?" }, { "speaker": "SPEAKER_04", "start": 11658.725, "end": 11659.225, "text": "Thank you." }, { "speaker": "SPEAKER_17", "start": 11660.065, "end": 11685.085, "text": "Thank you very much for the question. Um, Tourism Calgary's responsibility in our ecosystem is to sell the destination. They get the attention on Calgary. When we go into market, whether it be in Barcelona, uh Frankfurt, or Vegas, those are the three biggest Super Bowls of our world when it comes to selling our meetings and events. That's where you go. Buyers from around the world come in. So when we show up, we show up as Canada, Destination Canada." }, { "speaker": "SPEAKER_17", "start": 11685.465, "end": 11686.385, "text": "Then Alberta," }, { "speaker": "SPEAKER_17", "start": 11686.945, "end": 11692.705, "text": "then Tourism Calgary. And sometimes Alberta's out. Sometimes it'll be just directly, depending on the what platform we're on." }, { "speaker": "SPEAKER_17", "start": 11692.985, "end": 11695.505, "text": "But we're in a booth and" }, { "speaker": "SPEAKER_17", "start": 11696.085, "end": 11703.025, "text": "you have a table where Tourism Calgary is sitting beside us and my salesperson is sitting here and we're they're selling the destination, we're selling the venue." }, { "speaker": "SPEAKER_17", "start": 11703.645, "end": 11717.605, "text": "On another table beside us, there'll be a tourism Calgary representative and a BMO Center. So depending on the platform that they would fit into the best, that's how we interface. Their job is to get us to the table, then they step back. And then our job is to sell our venue." }, { "speaker": "SPEAKER_17", "start": 11718.585, "end": 11747.325, "text": "They come back into the conversation once the customers decided they want to come to Calgary, because now they need hotel rooms. And so now they need a discount in the hotel room. And that's Calgary's job, Tours and Calgary's job, to go and shop that for us and provide an incentivization for them to come to Calgary. So we're connected and we're not, depending on where we are in that conversation in the sales funnel. That conversation can be anywhere from three to seven years in that discussion. So it's a journey of relationships and trust." }, { "speaker": "SPEAKER_17", "start": 11748.085, "end": 11792.545, "text": "Once we have them in our destination, the best thing to do is get them in our get them. It's sort of like the Diamond Chrysler back in the day. Their their secret sauce was to put them in the car. We need to get them into our venue. Once they're here, we s we close the deal every time. They just need to see the venue, do the put them up in the hotels attached and bring them through. Tourism Calgary works with us on those fams and bringing them in and getting them into the space while they're seeing the rest of Calgary as well. Sometimes that buyer may look at both venues, BEMO Center and us. And they'll check out the hotels and see well which hotel works best for us. Or they maybe have a very complex program, which we have a few of in a year that triggers BEMO, us, and several hotels and maybe even an attraction. They're the conduit for all those conversations. So they're the spoke or the hub and the spoke of the wheel, if you will." }, { "speaker": "SPEAKER_17", "start": 11793.305, "end": 11793.825, "text": "But" }, { "speaker": "SPEAKER_17", "start": 11794.745, "end": 11832.005, "text": "In addition to that, we have our own sales team that are out hunting for things that fit in our specific building. That we know their personas, we know their behaviors, we know what they look like, what attracts them to us, and we hone in very strategically, almost surgically, at these sales functions, that these Super Bowls I was talking about that we go to. So there's an and in there. We have folks that are at the table and we have those who say, Get time for a coffee. And we'll go and we'll have that one off conversation, host them for a dinner, whatever it may be, and pull them that way too. So we have multiple different angles of hunting. It's not just casting a net. With respect to your trend question." }, { "speaker": "SPEAKER_17", "start": 11832.905, "end": 11838.905, "text": "The behaviors and patterns and trends when they come in. And you had a specific trend that you asked for. Sorry, could you repeat that?" }, { "speaker": "SPEAKER_17", "start": 11839.405, "end": 11862.125, "text": "The indigenous experience, thank you. So they want experiences. The trend for conventions now, the next gen, especially when they're when they're coming in, is they want to be in the convention center for part of the day, not all the day. And they're getting smaller. Those big tier one conventions are shrinking. So we are in a sweet spot to be where we are. That 1800, 1200, 1800 person convention is the sweet spot moving forward." }, { "speaker": "SPEAKER_17", "start": 11862.545, "end": 11952.125, "text": "Indigenous relations is a big part of our experience. And we have a mindset that our team has worked on, led by Allison Robbs, who's here in the room with me. We educate before celebrate. And so they want to have that part of it, but they don't really understand what that means to have the Indigenous experience part of their convention. And it's not just 1-800 call an elder. We educate them on how do you have those relationships? How do you bring them in? What's the purpose of this? Is this just a ticket box or do you want it to be meaningful? And then those exhibitors and those delegates may have the requirement to say, I want to go off site and have an indigenous experience. So that's curated on our side. The question you're asking really leans heavily into the leisure market, and there is a demand for that, especially in our province. They've gotten really good at it. Tourism Indigenous Alberta has spent a ton of money and experience in that, and they're leading Canada in those experiences, but also getting the startups going on those, but also how to host a German delegate who just loves that experience. And what happens when you have the northern or the Borealis happening at the same time. The Japanese and Chinese culture love to be there. That is a big, big good luck thing for them. So it's it's quite dynamic from that space. But we spend a lot of time in those relationships and having that go on, but also exposing them to it, otherwise they wouldn't have even heard about it. And when they come for a site check, that is always weaved into our journey with them, is an indigenous experience at some point in their journey, and not just a land acknowledgement." }, { "speaker": "SPEAKER_04", "start": 11952.205, "end": 11952.685, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 11956.645, "end": 11961.845, "text": "Thank you very much. Seeing no further questions, can I get Councilor Pencilopoulos to move this item?" }, { "speaker": "SPEAKER_10", "start": 11966.025, "end": 11968.785, "text": "Great. Uh and when clerks are ready with e scribe," }, { "speaker": "SPEAKER_10", "start": 11969.845, "end": 11970.905, "text": "please launch the vote." }, { "speaker": "SPEAKER_10", "start": 11979.345, "end": 11980.985, "text": "Thank you for your presentation. Thank you very much." }, { "speaker": "SPEAKER_06", "start": 11980.985, "end": 11981.265, "text": "Thanks very much." }, { "speaker": "SPEAKER_06", "start": 11981.845, "end": 11982.345, "text": "Great afternoon." }, { "speaker": "SPEAKER_10", "start": 11982.545, "end": 11982.885, "text": "Me too." }, { "speaker": "SPEAKER_17", "start": 11983.285, "end": 11983.585, "text": "Thanks all." }, { "speaker": "SPEAKER_10", "start": 11998.125, "end": 11998.825, "text": "It's thinking." }, { "speaker": "SPEAKER_10", "start": 11999.665, "end": 12000.645, "text": "It's thinking." }, { "speaker": "SPEAKER_10", "start": 12001.185, "end": 12001.885, "text": "Aren't we all?" }, { "speaker": "SPEAKER_00", "start": 12003.865, "end": 12005.005, "text": "Yeah." }, { "speaker": "SPEAKER_01", "start": 12044.165, "end": 12045.145, "text": "So I have to get a voice vote." }, { "speaker": "SPEAKER_01", "start": 12074.865, "end": 12077.385, "text": "Well I I will do a roll call vote." }, { "speaker": "SPEAKER_22", "start": 12098.905, "end": 12099.365, "text": "Yes," }, { "speaker": "SPEAKER_09", "start": 12100.345, "end": 12101.405, "text": "Sorry." }, { "speaker": "SPEAKER_22", "start": 12101.405, "end": 12101.825, "text": "uh" }, { "speaker": "SPEAKER_04", "start": 12112.625, "end": 12112.965, "text": "Yes." }, { "speaker": "SPEAKER_19", "start": 12118.205, "end": 12119.865, "text": "That vote passes" }, { "speaker": "SPEAKER_19", "start": 12120.545, "end": 12121.265, "text": "five to nothing." }, { "speaker": "SPEAKER_10", "start": 12121.465, "end": 12123.145, "text": "Perfect. Mr. Kerry unanimously." }, { "speaker": "SPEAKER_10", "start": 12123.485, "end": 12127.965, "text": "We'll now go to 7.5 External Auditors 2026 Audit Service Plan." }, { "speaker": "SPEAKER_02", "start": 12148.005, "end": 12148.805, "text": "Be online." }, { "speaker": "SPEAKER_02", "start": 12149.345, "end": 12151.445, "text": "Okay, perfect. Thank you." }, { "speaker": "SPEAKER_02", "start": 12155.545, "end": 12156.385, "text": "Okay." }, { "speaker": "SPEAKER_02", "start": 12156.665, "end": 12158.465, "text": "Good afternoon." }, { "speaker": "SPEAKER_02", "start": 12159.025, "end": 12171.345, "text": "Big day for us. We are here to present the audit plan for the 2026 audit, so another audit year commencing. Harmon Gill audit partner, and I'm joined by Nicole Torgensen remotely, who is our advisory partner." }, { "speaker": "SPEAKER_02", "start": 12171.545, "end": 12178.805, "text": "So we will perform an audit of the city's financial statements, which are prepared in accordance with Canadian public sector accounting standards," }, { "speaker": "SPEAKER_02", "start": 12179.045, "end": 12182.285, "text": "as at and for the year ending December 31st, 2026." }, { "speaker": "SPEAKER_02", "start": 12182.885, "end": 12187.945, "text": "Our audit will be conducted in accordance with Canadian Generally Accepted Auditing Standards or Canadian GAS." }, { "speaker": "SPEAKER_02", "start": 12189.045, "end": 12193.825, "text": "Significant risks. We are required to communicate significant risks to the audit committee during our audit plan." }, { "speaker": "SPEAKER_02", "start": 12194.405, "end": 12198.565, "text": "And based on our preliminary risk assessment, we have identified four significant risks," }, { "speaker": "SPEAKER_02", "start": 12198.985, "end": 12205.365, "text": "three of which are continuing from the prior year, and valuation of private investments being a new significant risk for 2026." }, { "speaker": "SPEAKER_02", "start": 12206.145, "end": 12212.065, "text": "Pages 7 to 10 of our document provide details of the assessment of the risk and the audit procedures we are expecting to perform." }, { "speaker": "SPEAKER_02", "start": 12213.485, "end": 12228.125, "text": "Page 11 of our document also provides details of areas of focus. While these are not accounts that are assessed as significant risks, given the nature of these accounts, we have noted these in our audit plan and related audit procedures we will perform for your information." }, { "speaker": "SPEAKER_02", "start": 12231.805, "end": 12257.185, "text": "In our preliminary risk assessment, we do hold discussions with administration to determine if there are any 2026 matters that we need to assess in terms of the audit plan and procedures we will perform. Based on our discussions held with administration to date and during our pre planning activities, we have noted no matters or significant transactions that would impact the 2026 audit as of the date of mail out of this audit plan." }, { "speaker": "SPEAKER_02", "start": 12257.625, "end": 12269.005, "text": "Of course, as we progress through the audit, because we have a significant number of months still outstanding, should any new matters arise, we will communicate these to the audit committee at future meetings, along with any scope or fee changes if applicable." }, { "speaker": "SPEAKER_02", "start": 12270.745, "end": 12280.125, "text": "Our expected preliminary estimate of materiality for the year ending uh December 31st, 2026, is assessed as $161 million." }, { "speaker": "SPEAKER_02", "start": 12280.405, "end": 12289.145, "text": "On the basis of consolidated 2025 actual expenses. The increase in materiality from prior year relates simply to an increase in actual expenses." }, { "speaker": "SPEAKER_02", "start": 12289.985, "end": 12302.565, "text": "We are required to report to you any uncorrected misstatements greater than a reporting threshold of 8,050,000. This is re rough, this is 5% of 161 million. Okay." }, { "speaker": "SPEAKER_02", "start": 12302.805, "end": 12313.385, "text": "And so, of course, we will revisit and recalculate materiality throughout the audit process and at year-end based on actual 2026 expenses and report any changes to the audit committee if applicable." }, { "speaker": "SPEAKER_02", "start": 12316.865, "end": 12330.965, "text": "Page 12 of our document is group audit. So the audit of the city's city is considered to be a group audit. We are the auditors of all related authorities and will issue an audit opinion on the standalone financial statements of each entity at the completion of the 2026 audits." }, { "speaker": "SPEAKER_02", "start": 12331.625, "end": 12341.965, "text": "For the purposes of the city's consolidated financial statements, each related authority is required to provide their final internal financial statements to administration prior to completion of the consolidated audit." }, { "speaker": "SPEAKER_02", "start": 12342.365, "end": 12350.365, "text": "The timing of our audit procedures for the related authorities is planned for completion prior to the expected issuance date of the final auditors report for the City of Calgary." }, { "speaker": "SPEAKER_02", "start": 12351.525, "end": 12362.085, "text": "Our final auditors reports are presented to each related authority at their respective audit committee meetings. We are currently in the pre planning stages for the 2026 audits of all of the related authorities." }, { "speaker": "SPEAKER_02", "start": 12363.345, "end": 12367.885, "text": "Appendix one of our document shows senior members of our audit team." }, { "speaker": "SPEAKER_02", "start": 12368.445, "end": 12376.125, "text": "Appendix 2 is our fees. So our estimate of fees for the 2026 Consolidated Audit and other audits are provided here in Appendix 2." }, { "speaker": "SPEAKER_02", "start": 12376.365, "end": 12387.225, "text": "For the consolidated audit, the fees reflect the contractual increase per hour contract with the city plus additional scope fees for the new significant risk evaluation of private investments that is new for 2026." }, { "speaker": "SPEAKER_02", "start": 12388.285, "end": 12400.665, "text": "Appendix 3 of our document notes our timeline for the audit, which is consistent with the prior year. Officially, the audit commences in September with our first interim visit, where we will perform planning procedures and complete testing of internal controls." }, { "speaker": "SPEAKER_02", "start": 12401.225, "end": 12409.165, "text": "Followed by a second visit in November and finally year-end in March 2027 with official reporting to the audit committee at the April 2027 meeting." }, { "speaker": "SPEAKER_02", "start": 12410.025, "end": 12421.565, "text": "It's a ways away, but I think it'll come very fast. So before you know it, we'll be here reporting on the year-end audit. Appendix 4 outlines our required communications with the audit committee along with how we are addressing these communications." }, { "speaker": "SPEAKER_02", "start": 12422.385, "end": 12441.165, "text": "Appendix 5 outlines upcoming new accounting standards that the city will need to adopt. There are no new standards for the 2026 audit, however, as outlined in our appendix, there are new standards relating to the presentation of the financial statements which will be effective for the city's December 31st, 2027 year end." }, { "speaker": "SPEAKER_02", "start": 12442.325, "end": 12457.545, "text": "Uh and much further into the future, as of today, there is a new standard on employee benefits, though mostly relating to pension plans of the city, effective for the December 31st, 2030 audit. And we've noted this here, although it's a few years away, because PSAS has officially" }, { "speaker": "SPEAKER_02", "start": 12457.845, "end": 12465.105, "text": "issued this standard. And so this will be something that the administration will have to adopt in 2030 for their financial statements." }, { "speaker": "SPEAKER_02", "start": 12466.045, "end": 12474.385, "text": "Appendix 6 provides a summary of estimated audit fees for the year ending December 31st, 2026 for the city, the related authorities, and ancillary audits." }, { "speaker": "SPEAKER_02", "start": 12474.705, "end": 12479.285, "text": "And this reflects the contractual 2026 fees pursuant to our contract with the city." }, { "speaker": "SPEAKER_02", "start": 12480.025, "end": 12491.685, "text": "As the auditing standards require the presentation of all fees charged by Deloitte to the city in our independence letter be issued following the completion of the audit, the fee information in this appendix is for the information of audit committee." }, { "speaker": "SPEAKER_02", "start": 12493.185, "end": 12505.405, "text": "Appendix 7 finally is our draft engagement letter which will be signed by the city following approval of the audit plan and audit fees for 2026. I will now pass it on to Nicole to make some closing remarks. Thank you." }, { "speaker": "SPEAKER_27", "start": 12506.985, "end": 12512.325, "text": "Thanks, Harmon, and good afternoon. I wish I was with you in person today, but I'm home today recovering from knee surgery." }, { "speaker": "SPEAKER_27", "start": 12512.985, "end": 12518.825, "text": "Harmon summarized well our audit plan that fulfills both our professional responsibilities and commitment to you, the audit committee." }, { "speaker": "SPEAKER_27", "start": 12519.005, "end": 12521.605, "text": "It's an accumulation of our knowledge of the city," }, { "speaker": "SPEAKER_27", "start": 12522.145, "end": 12525.425, "text": "its operations, and the financial statement audit risks." }, { "speaker": "SPEAKER_27", "start": 12526.165, "end": 12531.945, "text": "It will result in an audit opinion, our final audit report, and a letter of recommendation to administration." }, { "speaker": "SPEAKER_27", "start": 12532.765, "end": 12538.925, "text": "As you have experienced, we will raise matters throughout the year as required under our standards and that are relevant to you and our audit." }, { "speaker": "SPEAKER_27", "start": 12539.625, "end": 12543.285, "text": "We are pleased to open it up to any questions that the committee may have about our plan." }, { "speaker": "SPEAKER_10", "start": 12549.285, "end": 12550.485, "text": "Public Member Kim?" }, { "speaker": "SPEAKER_07", "start": 12551.945, "end": 12556.085, "text": "Great, thank you. Just a few questions on your audit plan." }, { "speaker": "SPEAKER_07", "start": 12557.205, "end": 12565.305, "text": "I noted that your staffing for this engagement, there's some turnover there. If you can maybe comment on the staff continuity and" }, { "speaker": "SPEAKER_07", "start": 12565.845, "end": 12567.045, "text": "staffing challenges." }, { "speaker": "SPEAKER_02", "start": 12567.345, "end": 12611.765, "text": "Absolutely. So, yes, there is firms always experience turnover, and we've had some turnover in the audit team that was serving the city previously. And what we do is we're a big firm and we usually have a pipeline of other managers and other individuals that are able to join the team. What we're doing right now is we're taking a very strategic long-term view to determining who will join the team at this time in terms of replacing those individuals. In the meantime, we do have other managers, as noted in our appendix of our team, who are currently on the team, uh on the audit team and will be assisting with the audit while we add usually, while we probably will add one or two other people as we start the interim in September." }, { "speaker": "SPEAKER_02", "start": 12613.845, "end": 12621.445, "text": "And in terms of continuity, there is still continuity on the team. So our I'm continuity. Our" }, { "speaker": "SPEAKER_02", "start": 12621.965, "end": 12649.025, "text": "senior staff members, two of our seniors and the staff below them, are also continuity. And two of our managers that are on our um that are in our team in our orgs chart, Kat Beninger and Shadab here, have been on this engagement for a number of years, and Shadab probably since like 2020. So there is a significant amount of continuity on the engagement, and we don't expect any interruption or issues with regards to serving or completing the audit." }, { "speaker": "SPEAKER_07", "start": 12649.965, "end": 12650.565, "text": "Great." }, { "speaker": "SPEAKER_07", "start": 12651.365, "end": 12655.545, "text": "On your uh appendix two, where you refer to a uh audit fees." }, { "speaker": "SPEAKER_07", "start": 12656.065, "end": 12663.385, "text": "There's $75,000 earmarked for additional audit or non-audit services as requested by audit committee." }, { "speaker": "SPEAKER_07", "start": 12664.045, "end": 12665.205, "text": "Is that only" }, { "speaker": "SPEAKER_07", "start": 12665.985, "end": 12669.905, "text": "if additional services are required? Because I just see that it's included in the total." }, { "speaker": "SPEAKER_02", "start": 12671.245, "end": 12704.725, "text": "Yes, so this is by this is per audit committee bylaw. There is uh within the audit committee bylaw, and correct me if I'm wrong, there is an allowance for the audit committee chair to approve up to $75,000 of additional work, should that be required, but up to only a $75,000 fee range. And we include this in year as an approval every year that you are approving us to be able to do this work. Um there isn't anything right now that is confirmed in terms of this particular $75,000." }, { "speaker": "SPEAKER_07", "start": 12705.645, "end": 12712.125, "text": "Okay, so to clarify, then we're approving this dollar amount. It may be less if these services are not part." }, { "speaker": "SPEAKER_02", "start": 12712.125, "end": 12725.945, "text": "Absolutely, absolutely. And may and it may be nothing and it's been nothing for the past many years. Uh because it's per your byla and we are presenting fees to be approved for twenty twenty six, we present this to ensure that we have a complete list of fees that you are approving." }, { "speaker": "SPEAKER_07", "start": 12726.125, "end": 12727.145, "text": "Okay, thank you." }, { "speaker": "SPEAKER_07", "start": 12727.625, "end": 12732.845, "text": "And you noted that there is an additional $15,000 for private investments." }, { "speaker": "SPEAKER_07", "start": 12733.505, "end": 12739.845, "text": "Are those new, those new uh investments? Is that so are those new procedures because it's a new investment?" }, { "speaker": "SPEAKER_02", "start": 12740.045, "end": 12759.925, "text": "So the investment itself, the accounts are not new. What hap what's happened is the risk assessment for that account is new. It is now elevated to a significant risk, per our executive summary, related to the valuation of private investments. So these are accounts that" }, { "speaker": "SPEAKER_02", "start": 12760.345, "end": 12789.625, "text": "these accounts are invested in private companies where there aren't public, this isn't publicly available information, so we've we have to do additional procedures. The reason it's elevated to an add significant risk is in the past two years, you might have remembered that the uncorrected misstatements uh resulting from the 2024 and 2025 audit were related to the private company investments. And hence when we see a history of" }, { "speaker": "SPEAKER_02", "start": 12790.165, "end": 12793.985, "text": "Errors in an account, it is then elevated," }, { "speaker": "SPEAKER_02", "start": 12794.925, "end": 12818.205, "text": "it may be elevated to a significant risk. In this case, it was determined based on our risk assessment that this account the private investments valuation only should be elevated to a pri to a significant risk, and hence we do have to perform additional procedures, and we may have to rely on additional experts at Deloitte to help us to audit those numbers to ensure that they are complete and accurate." }, { "speaker": "SPEAKER_07", "start": 12820.825, "end": 12821.725, "text": "Okay, thank you." }, { "speaker": "SPEAKER_07", "start": 12822.325, "end": 12831.125, "text": "And then finally, um how about the use of AI in your audit? And what could we see as the impact of AI on" }, { "speaker": "SPEAKER_07", "start": 12831.405, "end": 12833.665, "text": "perhaps the cost of the audit or staffing?" }, { "speaker": "SPEAKER_02", "start": 12834.845, "end": 12837.445, "text": "So currently with our platform," }, { "speaker": "SPEAKER_02", "start": 12837.945, "end": 12841.925, "text": "um we obviously have a saw uh a platform that that um" }, { "speaker": "SPEAKER_02", "start": 12842.505, "end": 12850.645, "text": "can we conduct the audit on. Uh we are not planning to use AI in a significant sort of scope." }, { "speaker": "SPEAKER_02", "start": 12850.825, "end": 12877.345, "text": "I think we mentioned before there's a smart reviewer piece of it, right? That helps to review some of the documents and and identify gaps. But at this point, we're just building out our AI platforms in terms of what it means for the for the audit itself, right? So there will be, there's not a significant change or use in AI for the 2026 audit in terms of our platform. I will uh I will pass it on to Nicole if she has any other comments on that part. Nicole?" }, { "speaker": "SPEAKER_27", "start": 12878.665, "end": 12884.765, "text": "Yeah, Harmon, I think that's accurate in terms of what you've said. And I think there's been advancements in terms of" }, { "speaker": "SPEAKER_27", "start": 12885.045, "end": 12887.905, "text": "analytics and how to use technology" }, { "speaker": "SPEAKER_27", "start": 12888.145, "end": 12910.585, "text": "in a more efficient way as opposed to artificial intelligence. The other thing, too, is as a firm, we have seen scenarios where we have reduced some hours in other parts of our business and therefore reliance on people and staff. But the token and licensing costs actually mitigate a bunch of that cost as well. So it's not a massive reduction that we're seeing necessarily." }, { "speaker": "SPEAKER_07", "start": 12913.565, "end": 12916.345, "text": "Great, thank you. Those are my questions. Speedy recovery, Nicole." }, { "speaker": "SPEAKER_27", "start": 12917.265, "end": 12918.245, "text": "Thank you. Appreciate it." }, { "speaker": "SPEAKER_10", "start": 12919.365, "end": 12920.605, "text": "Thank you, Public Member Knacker." }, { "speaker": "SPEAKER_04", "start": 12922.805, "end": 12930.285, "text": "Uh thank you, Chair. Uh I'm partly covered, uh, but maybe just a uh follow-up on that AI piece. Um so" }, { "speaker": "SPEAKER_04", "start": 12931.485, "end": 12936.985, "text": "is it uh would because if I look at that smart reviewer, right? Um," }, { "speaker": "SPEAKER_04", "start": 12938.365, "end": 12940.585, "text": "and I just maybe want to" }, { "speaker": "SPEAKER_04", "start": 12940.905, "end": 12952.265, "text": "To have you unpack that a little bit, to understand why it would not have reductions in costs when that could be equated to the reviewer" }, { "speaker": "SPEAKER_04", "start": 12952.725, "end": 12954.125, "text": "costs going down." }, { "speaker": "SPEAKER_04", "start": 12954.385, "end": 12957.765, "text": "I do understand very intimately the token prices," }, { "speaker": "SPEAKER_04", "start": 12958.365, "end": 12962.645, "text": "but just being a CPA myself, I know that the rates of the tokens can never be" }, { "speaker": "SPEAKER_04", "start": 12962.945, "end": 12964.925, "text": "equated to the rate of a reviewer," }, { "speaker": "SPEAKER_02", "start": 12965.065, "end": 12965.305, "text": "Yeah." }, { "speaker": "SPEAKER_04", "start": 12965.325, "end": 12966.425, "text": "currently at least." }, { "speaker": "SPEAKER_02", "start": 12966.425, "end": 12976.565, "text": "So so with this marked reviewer, what we're using it for is to help us understand like it's it's not the actual detailed review that" }, { "speaker": "SPEAKER_02", "start": 12977.285, "end": 12999.585, "text": "What a manager or a partner would perform, right? It is to help the in the our senior staff members when they are drafting the documentation to review that doc to have the smart reader review the documentation for any gaps that may be in that document. They still have to, as we know with AI out outputs. There is still a" }, { "speaker": "SPEAKER_02", "start": 13000.125, "end": 13023.305, "text": "human reviewing it. They have to read their documentation before it's passed on. And and we do too as well, right? I don't rely on just send you know putting it into a into a bot and say, hey, do this review. So that human, those human hours are still there, are still they're still valid in terms of using that that reader. It is just helping us to support any gaps in the documentation itself, right? And and any" }, { "speaker": "SPEAKER_02", "start": 13024.365, "end": 13052.705, "text": "Audit partner will tell you, I mean, you need to read that documentation. I'm signing on an audit opinion, right? So so I can't rely on a AI tool to do that review for me. So my my time that I spend is still required, regardless of the fact that I may use it to help me a little bit in terms of summarizing stuff. But that that review time is still exists for the for the working papers that we need to review. And again, I'll pass it on to Nicole if she has any other comments." }, { "speaker": "SPEAKER_02", "start": 13053.025, "end": 13053.485, "text": "Thanks." }, { "speaker": "SPEAKER_27", "start": 13053.825, "end": 13056.785, "text": "Yeah, one of the one of the key elements and reviewer is" }, { "speaker": "SPEAKER_27", "start": 13057.545, "end": 13063.565, "text": "potentially a bit of a misleading word. It's also actually a training function. So as an example, one of the things it looks for" }, { "speaker": "SPEAKER_27", "start": 13064.045, "end": 13067.325, "text": "when you do control documentation, we require that you put down" }, { "speaker": "SPEAKER_27", "start": 13067.725, "end": 13070.065, "text": "the individual that you talk to and their position." }, { "speaker": "SPEAKER_27", "start": 13070.605, "end": 13080.585, "text": "This reviewer element, when the student writes it up, does a first review to say, have they missed any titles beside somebody's name? And if it has, it flags them for them to go back and do work." }, { "speaker": "SPEAKER_27", "start": 13080.765, "end": 13084.345, "text": "So it's that kind of element of information that it does." }, { "speaker": "SPEAKER_04", "start": 13085.225, "end": 13099.405, "text": "Sure. And maybe just a follow-up, uh, Nicole, because you've unpacked that reviewer, because it's almost saying that there's a portion of the work that's being done. Um, is there any uh reason that that wasn't mentioned within this audit plan? Um" }, { "speaker": "SPEAKER_04", "start": 13099.745, "end": 13101.785, "text": "in the sense that that uh" }, { "speaker": "SPEAKER_04", "start": 13102.485, "end": 13103.985, "text": "AI um" }, { "speaker": "SPEAKER_04", "start": 13104.365, "end": 13121.725, "text": "tool will be used uh within the audit? Um I guess that's the one piece. And then what are you seeing in the industry when uh when tools are being used? What sort of disclosure is being made, uh, both in an audit plan perspective as well as um" }, { "speaker": "SPEAKER_04", "start": 13121.985, "end": 13128.725, "text": "within within your your documents. So that clients are clear when decisions or even work" }, { "speaker": "SPEAKER_04", "start": 13129.005, "end": 13129.765, "text": "has been" }, { "speaker": "SPEAKER_04", "start": 13130.505, "end": 13136.085, "text": "well three three three levels, right? Uh clients are clear. Clients like the the the City are clear that" }, { "speaker": "SPEAKER_04", "start": 13136.305, "end": 13160.865, "text": "Work is being performed to s to what level from an audit perspective by an AI tool. Number two, how this tool is being trained using uh study data or client data. And then number three, I guess, uh, where is that human involvement? Like, is that uh clearly unpacked? And if not, is there some thought to have that clearly unpacked?" }, { "speaker": "SPEAKER_27", "start": 13162.225, "end": 13168.165, "text": "So we we disclose very particularly if there is no," }, { "speaker": "SPEAKER_27", "start": 13168.645, "end": 13174.885, "text": "we're required in the standard to have a couple of levels of review. Under the auditing standard, you have to have a primary review and a secondary review." }, { "speaker": "SPEAKER_27", "start": 13175.285, "end": 13184.985, "text": "If a primary review or secondary review is being done by a non-human, we would disclose it. In this case, it is highlighting missing data" }, { "speaker": "SPEAKER_27", "start": 13185.545, "end": 13192.865, "text": "as opposed to doing a review for is it a properly designed control in this example or properly implemented control?" }, { "speaker": "SPEAKER_27", "start": 13194.505, "end": 13206.185, "text": "And so that sort of covers it off in terms of if AI is the primary user. It's also if we use it in a significant function or risk or element. So if it was" }, { "speaker": "SPEAKER_27", "start": 13206.445, "end": 13214.245, "text": "Picking all of our samples and doing the first set of tests, which is something that we're looking at in a way that we could particularly do it," }, { "speaker": "SPEAKER_27", "start": 13214.505, "end": 13220.125, "text": "versus potentially populating a spreadsheet. So it depends on the degree," }, { "speaker": "SPEAKER_27", "start": 13220.405, "end": 13222.985, "text": "the extent and the level of human intervention." }, { "speaker": "SPEAKER_27", "start": 13223.205, "end": 13224.725, "text": "At the city," }, { "speaker": "SPEAKER_27", "start": 13225.005, "end": 13229.145, "text": "given the data and the information, the sensitivity, et cetera." }, { "speaker": "SPEAKER_27", "start": 13229.445, "end": 13248.005, "text": "We don't use it in a significant manner, as Harmon uh mentioned. And we do not use any of the data of the city to train. When we develop these things and we have a global audit platform, it is all done with desensitized information to train the data that we're going to use as we implement into audits." }, { "speaker": "SPEAKER_04", "start": 13248.945, "end": 13273.725, "text": "Okay, so Nicole, thank you for that. Um, however, I just want to maybe just uh highlight and then correct me, okay? But this my view is that um even once like the the model is never fully trained. The model is always being trained, and so therefore, if the data of the city is being used for a specific audit, then by default that model is being trained." }, { "speaker": "SPEAKER_04", "start": 13275.025, "end": 13310.685, "text": "That is my understanding. That is my understanding. And that's a that's a global view, right? So it's not only my understanding. But I'm gonna pause that because uh I guess that's a that's a concern globally that whenever you're using a tool, the data that's being um used uh at that point is being used to train the data. Um but I guess uh as we continue the conversations, we'll probably hear more from from your team. Um but I guess my one concern is uh why that is not being featured in this audit plan. Like why is that not being pulled up or mentioned?" }, { "speaker": "SPEAKER_02", "start": 13310.685, "end": 13311.165, "text": "So" }, { "speaker": "SPEAKER_02", "start": 13311.505, "end": 13314.885, "text": "to clarify, if I can, so this smart reader, the re the" }, { "speaker": "SPEAKER_02", "start": 13315.425, "end": 13329.425, "text": "The area we're using it as is when we do internal control testing, we are required to understand what the process is, right? And which is we call it a walkthrough, right? So we come and speak to somebody from administration, we say, can you do a walkthrough" }, { "speaker": "SPEAKER_02", "start": 13329.665, "end": 13365.905, "text": "of your AP process, right? So we go and jot it down. It's in a Word document. It's in a Word document, and all we're doing is taking that Word document, which is our documentation. It's not any of the city's data, right? There is no other personal or or confidential information in those in that document. It's a walkthrough. So if you see a walkthrough, it's just processing, saying this person does this, and then this control happens, that happens, and this is the monthly or frequently, you know, whatever the frequency is. And then we just run that reviewer to say, okay, have you missed any piece of information? As in if you put a name down, if I say," }, { "speaker": "SPEAKER_02", "start": 13366.885, "end": 13369.025, "text": "John so and so, you know," }, { "speaker": "SPEAKER_02", "start": 13369.385, "end": 13374.365, "text": "performs this control or checks this this report, hey, you missed the title of j" }, { "speaker": "SPEAKER_02", "start": 13374.725, "end": 13391.765, "text": "John's title, right? So we're not using it within our audit testing working papers. It is simply being used for our walkthrough procedures. And if you've seen walkthrough procedures, they can be very lengthy, right? There's flow charts and there's like documents, and they're they're lengthy word documents, and that's to help" }, { "speaker": "SPEAKER_02", "start": 13392.265, "end": 13404.745, "text": "ensure that we haven't actually missed any information, right? I mean, I would be I'm still reading that document, right? I'm still reading it, and I can pick up the the the comment to say, hey, we missed this person's title, or we missed a date here, or we missed this." }, { "speaker": "SPEAKER_02", "start": 13405.285, "end": 13411.705, "text": "You know, this doesn't make sense that we're doing it monthly, frequently, like in some inconsistencies. So there's still human review on the" }, { "speaker": "SPEAKER_02", "start": 13412.245, "end": 13414.665, "text": "uh on that document as well and there has to be," }, { "speaker": "SPEAKER_02", "start": 13415.025, "end": 13415.405, "text": "right?" }, { "speaker": "SPEAKER_02", "start": 13416.105, "end": 13419.785, "text": "Like the standards don't allow us to they don't allow me to just push a button" }, { "speaker": "SPEAKER_02", "start": 13420.265, "end": 13425.725, "text": "on that one working paper, any working papers and say, I'm done with my review and I can sign it off. I still have to read it." }, { "speaker": "SPEAKER_02", "start": 13427.565, "end": 13429.565, "text": "So we're talking about a very small scope." }, { "speaker": "SPEAKER_04", "start": 13429.565, "end": 13467.305, "text": "Yeah, so so thanks so much for that explanation. Um I do uh you know still want to to to I I don't want to belabor the point, but I think there's two components. One is uh should it be disclosed in this audit plan? Um I think it should, that's my opinion, uh, so that we are aware of that. Uh and then the second piece is um where it's being used, we should have full visibility where it's being used. And maybe third, and I think that's the important piece, uh, but as I said, I don't want to belabor the point because I think we're differing on the opinions, but something for just to take away is that that information of that process walkthrough. Um" }, { "speaker": "SPEAKER_04", "start": 13468.125, "end": 13482.725, "text": "Is eventually proprietary of the city. And so therefore, if it's put into a tool, it's being taught uh it's the the tool is being taught and eventually is going to be used at an on another client" }, { "speaker": "SPEAKER_04", "start": 13482.905, "end": 13484.745, "text": "on certain processes that belong to" }, { "speaker": "SPEAKER_27", "start": 13486.045, "end": 13491.825, "text": "That is actually not correct in the sense so that we've different types of tools that we build within the firm globally." }, { "speaker": "SPEAKER_27", "start": 13492.205, "end": 13494.165, "text": "There are tools that learn" }, { "speaker": "SPEAKER_27", "start": 13494.485, "end": 13497.605, "text": "and enhance. And so, as an example, we will have" }, { "speaker": "SPEAKER_27", "start": 13498.085, "end": 13506.985, "text": "for non audit clients, contract management tools that, as you put them through 10,000 contracts at a client, they will get better and learn." }, { "speaker": "SPEAKER_27", "start": 13507.365, "end": 13509.625, "text": "Pulling out key data, key sites, et cetera." }, { "speaker": "SPEAKER_27", "start": 13510.145, "end": 13514.305, "text": "When we build certain things that are fact based, that have" }, { "speaker": "SPEAKER_27", "start": 13514.865, "end": 13518.765, "text": "is there an absence? Does if this follows this, yes, no," }, { "speaker": "SPEAKER_27", "start": 13518.925, "end": 13522.045, "text": "it is not learning because it doesn't pull the information that's looking" }, { "speaker": "SPEAKER_27", "start": 13522.385, "end": 13526.825, "text": "for absence or logic statements, as opposed to, and there's different types of" }, { "speaker": "SPEAKER_27", "start": 13527.305, "end": 13527.885, "text": "um" }, { "speaker": "SPEAKER_27", "start": 13528.305, "end": 13532.865, "text": "data in terms of what's artificial intelligence versus intelligence and analytics." }, { "speaker": "SPEAKER_27", "start": 13533.365, "end": 13540.845, "text": "And so this one's factual based and happy for us to spend some time with you. One, we go through a very rigorous process within the firm." }, { "speaker": "SPEAKER_27", "start": 13541.485, "end": 13551.425, "text": "We also get reviewed by our regulators. They are very interested in how all of the firms are using AI with respect to the professional standards that we have to withhold" }, { "speaker": "SPEAKER_27", "start": 13551.825, "end": 13556.705, "text": "and quality of data, et cetera. And so we're happy to take some time offline." }, { "speaker": "SPEAKER_27", "start": 13556.945, "end": 13566.465, "text": "We raise it and put it specifically in the audit plans where it was used in a significant fashion within the audit. One, we don't take a control reliance within the city." }, { "speaker": "SPEAKER_27", "start": 13566.685, "end": 13579.185, "text": "And so we do not do control testing. We have the process documentation in there that's required under the standards for walkthroughs and understanding, not for the performance of control assurance and testing." }, { "speaker": "SPEAKER_27", "start": 13579.545, "end": 13583.185, "text": "But we're happy to take some time if you want to go through some of this." }, { "speaker": "SPEAKER_04", "start": 13583.665, "end": 13585.725, "text": "the No absolutely I'd appreciate that. Thank you." }, { "speaker": "SPEAKER_10", "start": 13585.745, "end": 13589.785, "text": "Thank you. And we're gonna have to break to the college here. Thank you. Recessed." }, { "speaker": "SPEAKER_19", "start": 18831.865, "end": 18834.345, "text": "Thank you, Chair. To confirm quorum, Councilor Jameson," }, { "speaker": "SPEAKER_19", "start": 18835.825, "end": 18836.565, "text": "Councilor Clark," }, { "speaker": "SPEAKER_19", "start": 18839.505, "end": 18841.065, "text": "Councilor Pantezopoulos," }, { "speaker": "SPEAKER_19", "start": 18843.845, "end": 18845.045, "text": "Public Member Kim," }, { "speaker": "SPEAKER_19", "start": 18847.565, "end": 18848.565, "text": "Public Member Niker." }, { "speaker": "SPEAKER_04", "start": 18849.545, "end": 18850.045, "text": "Yeah." }, { "speaker": "SPEAKER_19", "start": 18850.425, "end": 18850.925, "text": "Thank you." }, { "speaker": "SPEAKER_19", "start": 18852.765, "end": 18854.585, "text": "Uh Public Member McDonald," }, { "speaker": "SPEAKER_19", "start": 18855.285, "end": 18856.425, "text": "Mayor Farkas," }, { "speaker": "SPEAKER_19", "start": 18857.485, "end": 18858.705, "text": "and Councilor Wynus." }, { "speaker": "SPEAKER_10", "start": 18858.705, "end": 18872.465, "text": "Thanks. And public member Kim is here. She just has a micro issue. Thank you. So before we dump jump to our timed item, I'd like to get general consent or unanimous consent to postpone our timed item just to do a quick vote." }, { "speaker": "SPEAKER_10", "start": 18873.565, "end": 18874.205, "text": "All in favor?" }, { "speaker": "SPEAKER_10", "start": 18875.225, "end": 18876.565, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 18877.125, "end": 18884.605, "text": "And then for 7.5 External Auditor 2026 Audit Service Plan Report will be moved by Councillor Clark." }, { "speaker": "SPEAKER_10", "start": 18889.465, "end": 18893.045, "text": "And then when EScribe is ready, if it's hopefully working," }, { "speaker": "SPEAKER_10", "start": 18893.185, "end": 18894.645, "text": "depending on our team's feed." }, { "speaker": "SPEAKER_10", "start": 18899.125, "end": 18900.225, "text": "There we go. Awesome." }, { "speaker": "SPEAKER_10", "start": 18901.185, "end": 18902.565, "text": "You scribe to vote when it's ready." }, { "speaker": "SPEAKER_19", "start": 18911.965, "end": 18913.625, "text": "Councilor Pandasopoulos, your vote, please." }, { "speaker": "SPEAKER_15", "start": 18915.205, "end": 18915.685, "text": "Yes." }, { "speaker": "SPEAKER_19", "start": 18915.865, "end": 18916.325, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 18917.465, "end": 18918.385, "text": "Please display the vote." }, { "speaker": "SPEAKER_19", "start": 18918.785, "end": 18919.985, "text": "Oh, not quite finished yet." }, { "speaker": "SPEAKER_19", "start": 18922.765, "end": 18924.125, "text": "Councilor Jameson, your vote, please." }, { "speaker": "SPEAKER_09", "start": 18924.685, "end": 18925.065, "text": "Yes." }, { "speaker": "SPEAKER_19", "start": 18925.625, "end": 18926.045, "text": "Thank you." }, { "speaker": "SPEAKER_19", "start": 18927.365, "end": 18929.205, "text": "And Public Member Niker, your vote, please." }, { "speaker": "SPEAKER_04", "start": 18930.085, "end": 18930.565, "text": "Yes." }, { "speaker": "SPEAKER_19", "start": 18931.585, "end": 18933.085, "text": "Thank you. Chair, all the votes are in." }, { "speaker": "SPEAKER_10", "start": 18933.325, "end": 18934.205, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 18942.025, "end": 18944.005, "text": "Motion is carried unanimously. Six is nothing." }, { "speaker": "SPEAKER_10", "start": 18944.925, "end": 18950.885, "text": "Thank you very much. Now it takes us to our timed item 7.7, operational technology governance audit. Please come on down." }, { "speaker": "SPEAKER_21", "start": 18967.485, "end": 18977.365, "text": "Thank you, Chair. The first report I'm presenting today is AC 2026-0626, Operational Technology Governance Audit." }, { "speaker": "SPEAKER_21", "start": 18977.805, "end": 18984.945, "text": "The recommendations are that Audit Committee receive this report for the corporate record and recommend that Council receive this report for the corporate record." }, { "speaker": "SPEAKER_21", "start": 18985.505, "end": 19000.005, "text": "There is an additional recommendation that the audit report and related discussion remain confidential related to the relevant sections of the Access to Information Act. So, Chair, at this point committee may wish to move in camera so we can present the audit report and address any questions." }, { "speaker": "SPEAKER_10", "start": 19001.265, "end": 19005.505, "text": "Thanks. Can I get a motion to move in camera by Counselor Jameson to move?" }, { "speaker": "SPEAKER_19", "start": 19006.665, "end": 19010.345, "text": "Council Weines, do we want to do all of the closed items or just 7.7?" }, { "speaker": "SPEAKER_10", "start": 19010.365, "end": 19012.585, "text": "Let's do all of them. That'd be a miracle." }, { "speaker": "SPEAKER_10", "start": 19019.545, "end": 19020.205, "text": "Perfect." }, { "speaker": "SPEAKER_19", "start": 19021.445, "end": 19023.265, "text": "And we have a mover? Excellent." }, { "speaker": "SPEAKER_10", "start": 19023.685, "end": 19024.305, "text": "Thank you." }, { "speaker": "SPEAKER_10", "start": 19024.565, "end": 19025.665, "text": "E scribe to vote." }, { "speaker": "SPEAKER_19", "start": 19040.785, "end": 19042.345, "text": "Councilor Pandasopoulos, your vote, please." }, { "speaker": "SPEAKER_14", "start": 19043.025, "end": 19043.485, "text": "Yes." }, { "speaker": "SPEAKER_19", "start": 19044.785, "end": 19046.785, "text": "Thank you. And Public Member Niker, your vote, please." }, { "speaker": "SPEAKER_19", "start": 19055.125, "end": 19056.505, "text": "Public Member Niker, your vote, please." }, { "speaker": "SPEAKER_19", "start": 19064.525, "end": 19064.745, "text": "Okay." }, { "speaker": "SPEAKER_04", "start": 19065.885, "end": 19066.605, "text": "Sorry, yes." }, { "speaker": "SPEAKER_19", "start": 19066.605, "end": 19067.585, "text": "Oh, thank you very much." }, { "speaker": "SPEAKER_19", "start": 19068.125, "end": 19068.825, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 19069.685, "end": 19070.485, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 19071.825, "end": 19073.825, "text": "Motions carried unanimously 60." }, { "speaker": "SPEAKER_10", "start": 19074.245, "end": 19078.345, "text": "Please log off of the current teams and refer back to our old closed team links." }, { "speaker": "SPEAKER_13", "start": 21433.365, "end": 21439.425, "text": "The Audit Committee is about to reconvene in open session. Please make your way back to the Engineering Traditions Committee Room." }, { "speaker": "SPEAKER_09", "start": 21703.005, "end": 21703.865, "text": "Or call please." }, { "speaker": "SPEAKER_19", "start": 21707.365, "end": 21709.585, "text": "Thank you, Chair, to confirm quorum. Councilor Jameson." }, { "speaker": "SPEAKER_09", "start": 21709.925, "end": 21710.365, "text": "I'm here." }, { "speaker": "SPEAKER_19", "start": 21712.485, "end": 21713.225, "text": "Counselor Clark?" }, { "speaker": "SPEAKER_19", "start": 21713.945, "end": 21715.185, "text": "Councilor Pantozopoulos." }, { "speaker": "SPEAKER_09", "start": 21715.785, "end": 21716.105, "text": "Eric." }, { "speaker": "SPEAKER_19", "start": 21717.865, "end": 21718.725, "text": "Public Member Kim." }, { "speaker": "SPEAKER_19", "start": 21721.465, "end": 21722.005, "text": "Thank you." }, { "speaker": "SPEAKER_19", "start": 21723.585, "end": 21729.545, "text": "Uh Public Member Niker. Public Member McDonald. Mayor Farkas and Councilor Wynnes." }, { "speaker": "SPEAKER_19", "start": 21729.985, "end": 21731.025, "text": "Thank you. We have quorum." }, { "speaker": "SPEAKER_10", "start": 21731.345, "end": 21735.785, "text": "Alright. Horizon report by Councillor Pancalopoulos." }, { "speaker": "SPEAKER_10", "start": 21736.325, "end": 21739.205, "text": "Thank you for confirming. All in favor?" }, { "speaker": "SPEAKER_10", "start": 21739.885, "end": 21741.605, "text": "Motions carried unanimously." }, { "speaker": "SPEAKER_10", "start": 21743.085, "end": 21749.225, "text": "7.7 is where we're gonna go back to. Counselor Clark will move." }, { "speaker": "SPEAKER_10", "start": 21749.925, "end": 21753.585, "text": "And we will now go to E scribe to vote when Clerks has the vote ready." }, { "speaker": "SPEAKER_19", "start": 21776.645, "end": 21777.365, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 21777.945, "end": 21778.865, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 21781.725, "end": 21783.705, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 21783.845, "end": 21787.985, "text": "Thank you very much. Now we will move on to 7.6 City Auditors" }, { "speaker": "SPEAKER_10", "start": 21788.265, "end": 21789.785, "text": "Office Second Quarter" }, { "speaker": "SPEAKER_10", "start": 21790.005, "end": 21791.145, "text": "2026 report." }, { "speaker": "SPEAKER_21", "start": 21793.165, "end": 21794.005, "text": "Thank you, Chair." }, { "speaker": "SPEAKER_21", "start": 21794.365, "end": 21801.665, "text": "This report is AC 2026-0694, the City Auditor's Office Second Quarter 2026 report." }, { "speaker": "SPEAKER_21", "start": 21802.265, "end": 21809.445, "text": "The recommendations are that Audit Committee receive this report for the corporate record and recommend that council receive this report for the corporate record." }, { "speaker": "SPEAKER_21", "start": 21810.065, "end": 21826.425, "text": "As required by Schedule A of bylaw 30M 2004, as amended, this report includes trending and achievement of City Auditors Office performance measures, status of administration's recommendation action plans, and the status of audits in the approved 2026 audit plan." }, { "speaker": "SPEAKER_21", "start": 21827.225, "end": 21841.845, "text": "I'd like to briefly highlight our initiative briefing on page four of the attachment. This sets out the budget process that the City Auditor's Office follows to support presentation of the four-year business plan and budget to Council in November 2026." }, { "speaker": "SPEAKER_21", "start": 21842.185, "end": 21844.465, "text": "With that, I'm happy to address any questions." }, { "speaker": "SPEAKER_10", "start": 21856.885, "end": 21859.245, "text": "I am not seeing any questions from" }, { "speaker": "SPEAKER_10", "start": 21860.205, "end": 21860.825, "text": "committee." }, { "speaker": "SPEAKER_10", "start": 21861.785, "end": 21862.385, "text": "Thank you" }, { "speaker": "SPEAKER_10", "start": 21863.185, "end": 21864.265, "text": "very much" }, { "speaker": "SPEAKER_10", "start": 21864.865, "end": 21866.145, "text": "for your presentation." }, { "speaker": "SPEAKER_10", "start": 21867.325, "end": 21868.645, "text": "And can I get" }, { "speaker": "SPEAKER_10", "start": 21869.325, "end": 21871.325, "text": "Councillor Clark to move this, please?" }, { "speaker": "SPEAKER_10", "start": 21872.205, "end": 21875.665, "text": "Great. Thank you very much. And then when clerks are ready." }, { "speaker": "SPEAKER_10", "start": 21876.325, "end": 21877.225, "text": "E scribe to vote." }, { "speaker": "SPEAKER_19", "start": 21882.925, "end": 21883.645, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 21884.125, "end": 21885.245, "text": "Please display the votes." }, { "speaker": "SPEAKER_10", "start": 21887.805, "end": 21889.445, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 21891.065, "end": 21893.045, "text": "Alright, now we will head in to vote on" }, { "speaker": "SPEAKER_10", "start": 21894.205, "end": 21895.425, "text": "the in-camera items." }, { "speaker": "SPEAKER_10", "start": 21896.005, "end": 21900.965, "text": "So 9.2.1 will be moved by councillor Jameson." }, { "speaker": "SPEAKER_10", "start": 21904.065, "end": 21905.805, "text": "And we have the revised" }, { "speaker": "SPEAKER_10", "start": 21906.065, "end": 21907.505, "text": "confidential attachment." }, { "speaker": "SPEAKER_10", "start": 21907.885, "end": 21910.085, "text": "Perfect. And e scribe to vote when" }, { "speaker": "SPEAKER_10", "start": 21914.845, "end": 21915.125, "text": "you" }, { "speaker": "SPEAKER_19", "start": 21919.205, "end": 21919.945, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 21920.145, "end": 21920.925, "text": "please display the vote." }, { "speaker": "SPEAKER_10", "start": 21922.545, "end": 21923.585, "text": "Motions carried" }, { "speaker": "SPEAKER_10", "start": 21923.765, "end": 21924.645, "text": "unanimously." }, { "speaker": "SPEAKER_10", "start": 21933.265, "end": 21933.625, "text": "Wave." }, { "speaker": "SPEAKER_10", "start": 21934.725, "end": 21937.225, "text": "And she yeah, she acknowledged with the wave." }, { "speaker": "SPEAKER_10", "start": 21939.445, "end": 21941.965, "text": "Thank you. And when e scribe is ready," }, { "speaker": "SPEAKER_19", "start": 21960.165, "end": 21960.825, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 21961.125, "end": 21962.065, "text": "please display the vote." }, { "speaker": "SPEAKER_10", "start": 21964.405, "end": 21965.985, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 21967.565, "end": 21969.225, "text": "Alright, that will take us now to" }, { "speaker": "SPEAKER_10", "start": 21970.465, "end": 21971.705, "text": "wait, that was 9.2.2." }, { "speaker": "SPEAKER_10", "start": 21972.005, "end": 21976.845, "text": "9.2.3 moved by counselor Jameson. Audit forum verbal." }, { "speaker": "SPEAKER_10", "start": 21977.405, "end": 21978.505, "text": "E scribe to vote" }, { "speaker": "SPEAKER_10", "start": 21980.145, "end": 21980.805, "text": "and ready." }, { "speaker": "SPEAKER_19", "start": 21987.305, "end": 21987.925, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 21988.205, "end": 21988.925, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 21990.785, "end": 21992.185, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 21994.185, "end": 21998.505, "text": "9.2.4 will be moved by counselor Pancelopoulos." }, { "speaker": "SPEAKER_10", "start": 22000.005, "end": 22001.305, "text": "And e scribe to vote when ready." }, { "speaker": "SPEAKER_19", "start": 22013.245, "end": 22013.945, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 22014.545, "end": 22015.385, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 22016.285, "end": 22017.785, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 22018.885, "end": 22023.045, "text": "Now we go on to 9.2.6 moved by public member Kim." }, { "speaker": "SPEAKER_10", "start": 22024.465, "end": 22025.665, "text": "And thank you for" }, { "speaker": "SPEAKER_10", "start": 22025.905, "end": 22026.485, "text": "the wave." }, { "speaker": "SPEAKER_10", "start": 22033.625, "end": 22034.385, "text": "E scribe when" }, { "speaker": "SPEAKER_10", "start": 22034.805, "end": 22035.445, "text": "clerks are ready." }, { "speaker": "SPEAKER_19", "start": 22045.425, "end": 22046.025, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 22046.525, "end": 22047.245, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 22051.585, "end": 22052.985, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_10", "start": 22054.045, "end": 22057.505, "text": "Alright, now 9.2.7 moved by Councillor Clark." }, { "speaker": "SPEAKER_10", "start": 22058.145, "end": 22059.325, "text": "Thank you very much." }, { "speaker": "SPEAKER_10", "start": 22060.105, "end": 22062.325, "text": "E ascribe when clerks are ready." }, { "speaker": "SPEAKER_19", "start": 22086.105, "end": 22086.865, "text": "All the votes are in." }, { "speaker": "SPEAKER_10", "start": 22087.745, "end": 22088.625, "text": "Please display the vote." }, { "speaker": "SPEAKER_10", "start": 22095.865, "end": 22097.605, "text": "Motion is carried unanimously." }, { "speaker": "SPEAKER_19", "start": 22101.785, "end": 22108.065, "text": "Yes, uh there is a revised um a revised attachment on the the briefing um item 10.1" }, { "speaker": "SPEAKER_10", "start": 22109.865, "end": 22115.725, "text": "Perfect. Thank you for the revised uh briefing. And can I get a mover to adjourn?" }, { "speaker": "SPEAKER_10", "start": 22117.045, "end": 22118.145, "text": "Councilor Jamison" }, { "speaker": "SPEAKER_10", "start": 22118.445, "end": 22121.405, "text": "to adjourn. Thank you everyone. Have a great summer." }, { "speaker": "SPEAKER_10", "start": 22121.785, "end": 22124.945, "text": "Great work today. Even with our delay, we finished" }, { "speaker": "SPEAKER_10", "start": 22125.325, "end": 22125.885, "text": "on time." } ], "num_speakers": 28 }