[00:00:11]
          >> VIAGRAN: ALL RIGHT. THE TIME IS NOW 10:00 A.M. AND WE WILL BEGIN ON JUNE 3RD, 2026, IN THE MEETING OF THE AUDIT COMMITTEE IS NOW CALLED TO ORDER. MADAM CLERK, PLEASE CALL THE ROLL. 
          >> CLERK: I'LL BE ALLOWING MEMBER SPEAKERS TWO ROUNDS PER ITEM, FIVE MINUTES THE FIRST ROUND, TWO MINUTES THE SECOND ROUND. WE MAY GO OUT OF ORDER, WE ARE WAITING FOR ONE OF OUR SPEAKERS, SO I THINK WHAT WE'LL DO IS TAKE CONSENT AND THEN WE'LL HEAR -- WE WILL HEAR AUDIT FIRST AND THEN HOPEFULLY THAT GIVES US TIME TO GET OUR SPEAKER HERE. 
          [Approval of Minutes
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YES, SO LET'S TAKE THE FIRST ITEM ON THE AGENDA. 
          WHICH IS THE APPROVAL OF THE MINUTES. CAN I GET A MOTION AND A SECOND TO APPROVE THE MINUTES? I'VE GOT A MOTION AND A SECOND. ALL IN FAVOR SAY AYE. (AYES.) 
          >> VIAGRAN: ALL OPPOSED, SAY NO. MOTION CARRIES. 
          MADAM CLERK, ARE THERE ANY MEMBERS OF THE PUBLIC SIGNED UP TO SPEAK. 
          [CONSENT AGENDA
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          >> CLERK: WE HAVE NO MEMBERS OF THE PUBLIC SIGNED UP TO SPEAK. 
          >> VIAGRAN: GREAT. WE'LL TAKE THE CONSENT ITEM FIRST AND WE HAVE ONE AUDIT TO ACCEPT ON THE CONSENT AGENDA -- GET A MOTION AND A SECOND TO ACCEPT THE AUDIT ON THE CONSENT AGENDA. 
          I HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR, SAY 
          AYE. (AYES.) >> VIAGRAN: ALL OPPOSED, SAY NO. MOTION CARRIES. ALL RIGHT. 
          THERE BEING NO FURTHER DISCUSSION -- OH, I SEE OUR SPEAKER IS HERE, SO WE'LL TAKE THE ORDER OF THE DAY, SO WE'LL START WITH THE BRIEFING ON THE RELEASE OF SOLICITATION FOR ONE CONTRACT. SO ITEM NUMBER 3, MADAM 
          [Pre-Solicitation High Profile Briefings
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          CLERK, PLEASE READ THE CAPTION. >> CLERK: ITEM NUMBER 3 IS A BRIEFING ON THE RELEASE OF A SOLICITATION FOR ONE CONTRACT TO PROVIDE THE CAPITAL DELIVERY DEPARTMENT WITH CONSTRUCTION SERVICES FOR THE NEW FIRE STATION NUMBER 33, A 2022 BOND PROJECT, LOCATED AT 2935 CASTROVILLE ROAD IN COUNCIL DISTRICT FIVE FOR AN ESTIMATED TOTAL VALUE 
          OF $12,006,377. >> SHANNON: GOOD MORNING, MADAM CHAIR AND COUNCILMEMBERS AND COMMITTEE MEMBERS -- SORRY. 
          I'M MIKE SHANNON. I'M DIRECTOR OF CAPITAL DELIVERY. 
          WE'LL TALK ABOUT THE PRESOLICITATION AS MENTIONED. 
          SO WE WOULD LIKE TO ISSUE THIS REQUEST FOR COMPETITIVE SALE PROPOSAL. IT'S ACTUALLY FOR A BOND PROJECT FOR FIRE STATION NUMBER 33, IT'S A NEW FIRE STATION. AGAIN, IT WILL BE A CSP PROPOSAL. THE CONTRACT, ONCE AWARDED, WILL BE ABOUT 400 DAYS. WE ESTIMATE IT TO BE AROUND $12 MILLION, AND, AGAIN, I MENTIONED IT'S FROM THE '22 BOND, SO EXCITED TO GET THIS ONE OUT ON THE STREET. DOING A LOT OF OUR NORMAL OUTREACH TO THE CODE'S IDENTIFIED THERE, WE'LL HAVE AN EVALUATING COMMITTEE MADE UP OF DEPUTY CITY MANAGER, MARIA VILLAGOMEZ, CERTAINLY SEVERAL OF MY TEAM MEMBERS AND SEVERAL MEMBERS FROM THE FIRE DEPARTMENT TO EVALUATE THE PROPOSALS. THE EVALUATION CRITERIA IS GOING TO BE HEAVY ON EXPERIENCE, BACKGROUND AND QUALIFICATION, 35 POINTS. 
          CERTAINLY UNDERSTANDING THE PROJECT AND THE PROPOSED PLAN OF 30 POINTS. EXPERIENCE WITH SAN ANTONIO PROJECT, THE REGION AND PAST PERFORMANCE ON PROJECTS IS IMPORTANT, 10 POINTS THERE. PRICING AT 15, AND SBE PRIME FOR 10 POINTS. 
          ADDITIONAL REQUIREMENTS ON THIS ONE, 8% SBEDA SUBCONTRACTING REQUIREMENT WILL BE ON THIS ONE, AND WE DID DO THE SBEDA AVAILABILITY ANALYSIS WITH OUR EDD TEAM AS OUTLINED ON THE SLIDE. 
          OUR PROJECT TIMELINE IS LISTED ABOVE, SO WE'D LIKE TO RELEASE THIS CERTAINLY THIS MONTH, SHORTLY AFTER THIS MEETING. 
          WE WILL BE BACK AT POSTSLISTATION AFTER THE SUMMER, THE PROCESS OF EVALUATING SOMETIME IN SEPTEMBER, AND HOPEFULLY FOR COUNCIL CONSIDERATION IN OCTOBER TO GET THE PROJECT UNDER WAY BY THE END OF THE YEAR. 
          AND THAT'S SHORT AND SWEET. HAPPY TO ANSWER ANY 
          QUESTIONS. >> VIAGRAN: THANK YOU, MIKE. 
          I APPRECIATE THE PRESENTATION. THIS IS FOR BRIEFING 
          [00:05:02]
ONLY. THE ONE THING THAT I WOULD -- AS WE TRANSITION TO THIS NEW-ISH DEPARTMENT, ARE WE UPPING THIS DEPARTMENT, BECAUSE I FEEL LIKE WE HAD IT BEFORE WITH A DIFFERENT TITLE. 
          IF YOU COULD JUST BE IN TOUCH WITH THE COUNCILMEMBER FROM THIS DISTRICT SIMPLY BECAUSE IT IS -- I KNOW HER COMMUNITY, THIS IS SOMETHING THEY'VE DESIRED AND THEY'VE BEEN ASKING FOR, SO THEY'RE CONTINUALLY MANY PROJECTS IN MIND ASKING HER QUESTIONS ON THAT, SO JUST KEEP HER UP TO DATE ON THE PROCESS AS WE BEGIN THAT, AND THEN ALSO AS WE START WITH BLACKOUTS STILL NOT SURE -- I KNOW THAT'S FOR -- I UNDERSTAND WHY IT HAPPENS, BUT AS WE ARE NOT ON THE SELECTION COMMITTEE, I THINK IT'S IMPORTANT THAT WE COMMUNICATE THAT TO THE COUNCILMEMBERS, BECAUSE THEN IT'S -- IT CAN BECOME PROBLEMATIC FOR OUR LOCALS THAT ARE APPLYING FOR THIS. SO, YEAH, I WOULD JUST TOUCH BASE, IF YOU CAN, WITH COUNCILWOMAN CASTILLO BEFORE AND KEEP HER UPDATED ON THIS PROCESS. DOES ANYONE ELSE HAVE ANY OTHER QUESTIONS FOR MIKE? YES, COUNCILWOMAN MEZA 
          GONZALEZ? >> GONZALEZ: JUST A QUICK QUESTION. 
          IS THERE ANY SORT OF KIND OF MIDWAY REPORTING THAT THE CONSTRUCTION WILL GIVE BACK, JUST TO MAKE SURE THAT IT'S ALIGNING WITH THE BOND SCHEDULE? 
          >> SHANNON: YES. ONCE WE -- ONCE WE GO OUT AND SELECT A CONTRACTOR, WE'LL BRING IT BACK TO YOU ALL, HOPEFULLY IN OCTOBER, IF NOT A LITTLE SOONER, TO SELECT A CONTRACTOR. THEN CONSTRUCTION WILL START AT THE END OF THE YEAR, AND THEN DURING THAT CONSTRUCTION OF THE FIRE STATION, LIKE WE ARE WITH THE POLICE STATION IN DISTRICT THREE AND A COUPLE OTHER FIRE STATIONS THAT ARE UNDER CONSTRUCTION, WE'LL GIVE THOSE UPDATES TO THE COUNCILMEMBERS, NOT ONLY INDIVIDUALLY, BUT AS A GROUP WHEN I DO MY UPDATES TO THE EITHER B SESSION OR TO A 
          COMMITTEE. >> GONZALEZ: JUST WANT TO MAKE SURE THAT THERE'S COMMUNITY ENGAGEMENT FOR THE SURROUNDING AREA, YOU KNOW, WITH THAT KIND 
          OF -- >> SHANNON: I SEE WHAT YOU'RE SAYING. 
          YES, WE DO LIKE PRECONSTRUCTION MEETINGS AND WE GIVE UPDATES DURING CONSTRUCTION AND WE LET THEM KNOW WHEN WE THINK IT'S GOING TO BE 
          FINISHED. >> GONZALEZ: THANK YOU. THANK YOU, MIKE. 
          [Post-Solicitation High Profile Briefings
 ]
          >> VIAGRAN: ALL RIGHT. IF THERE'S ANY -- ISN'T ANY OTHER QUESTIONS, THIS WAS FOR BRIEFING ONLY, SO WE'LL MOVE ON TO ITEMS NUMBER 4, 5 AND 6. 
          WE'LL HAVE MIKE SHANNON PRESENT ON ITEMS 4, 5 AND 6 AS THEY'RE ALL POSTSOLICITATION BRIEFINGS FOR CONSTRUCTION SERVICE CONTRACTS. CAN WE GET A STAFF PRESENTATION? 
          >> SHANNON: YES. SO I'LL RUN TRUE THREE -- THESE ARE THREE GOOD ONES BECAUSE WE'RE ACTUALLY HERE, THE CONTRACTORS, BRINGING IT TO COUNCIL SHORTLY AFTER THIS TO SELECT CONTRACTORS ON THREE IMPORTANT CONTRACTS. THE FIRST ONE IS FOR THE FATHER RAMAN COMMUNITY CENTER. SO, AGAIN, THIS WAS RFCSP, SO COMPETITIVE PROPOSAL TO CONSTRUCT A NEW COMMUNITY CENTER IN DISTRICT THREE. 
          THIS IS REPLACING ONE IN THE SAME AREA, SO EXCITED TO BRING THIS ONE BACK. 
          AGAIN, PROPOSED TERM, JUST OVER 400 DAYS, WE THINK, IT WILL BE ABOUT $7.7 MILLION. THIS IS NOT A BOND. THIS IS A NONBOND ISSUED FROM CERTIFICATES OF OBLIGATION AND THIS WILL BE A NEW CONTRACT. 
          SO WE ACTUALLY HAD SEVERAL VENDORS SUBMIT FOR THIS, WE ACTUALLY HAD 13 SUBMITTALS, FOUR ACTUALLY WERE DEEMED NONRESPONSIVE, SO WE DID HAVE A LOT TO SCORE. WENT THROUGH THE EVALUATION PROCESS WITH MEMBERS OF THE CITY MANAGER'S OFFICE, MEMBERS OF MY TEAM, AND PARKS AND REC. THROUGH THAT PROCESS, WE WERE ABLE TO SCORE BASED ON THE EXPERIENCE, BACKGROUND, PROJECTS PLANNED, ET CETERA, YOU SEE THERE. THERE WAS ONE VENDOR, VENDOR A LISTED THERE, IS THE ONE WE'RE GOING TO SELECT. THEIR SCORES WERE HIGHER THAN EVERYBODY ELSE'S SIGNIFICANTLY, SO WE'RE GOING TO PROPOSE TO MOVE FORWARD WITH THAT VENDOR TO FULL COUNCIL. THIS IS JUST SOME OF THE DUE DILIGENCE WE DO FOR EACH OF THESE. CERTAINLY A LOT OF VENDORS NOTIFIED. WE HAD SEVERAL AT THE PRE-CONFERENCE. 
          AS I MENTIONED, WE HAD 13 SUBMITTED WERE NONRESPONSIVE, FOUR, FOR FAILING TO MEET THE SUBCONTRACTOR REQUIREMENT, BUT NO MATERIAL FINDINGS FOR ANY OF THOSE THINGS WE'RE LOOKING FOR, RED FLAGS, DUE DILIGENCE, FINANCIALS, ET CETERA. SO OUR PROPOSAL WOULD BE TO MOVE THAT SELECTION VENDOR A TO CITY COUNCIL AFTER THIS MEETING. 
          I'M GOING TO QUICKLY GO INTO THE NEXT ONES, YOU ASKED ME TO DO ALL THREE AT ONCE. SIM PARTICULAR PROCESS, THE NEXT ONE WILL BE FOR FIRE STATION NUMBER 21. ALL RIGHT. SO WE DID ANOTHER COMPETITIVE SEALED PROPOSAL. THE PROCESS FOR THIS TO PROVIDE CONSTRUCTION FOR THE NEW FIRE STATION 21 IN DISTRICT THREE. 
          [00:10:05]
AGAIN, ABOUT 420 DAYS IS WHAT WE EXPECT THIS TO BE BUILT IN. 
          THIS ONE JUST UNDER $10 MILLION, AND, AGAIN, CERTIFICATES OF OBLIGATION WERE THE FUNDING SOURCE. IT WILL BE A NEW CONTRACT. THIS ONE, WE'RE GOING TO -- WE ACTUALLY HAD 11 SUBMITTALS WERE SUBMITTED, BUT WE HAD SEVEN OF THEM THAT WERE DEEMED NONRESPONSIVE FOR A FEW REASONS, MOST OF THEM NOT MEETING THE SBE REQUIREMENTS, AND THEN ONE WAS NOT THE RIGHT DOCUMENTATION. 
          HOWEVER, WE HAD FOUR QUALITY PROPOSALS, WE DID DO A SELECTION -- A SCORING PROCESS. AGAIN, DEPUTY CITY MANAGER, MYSELF, SOME TEAM MEMBERS ON MY TEAM AS WELL AS THE FIRE DEPARTMENT EVALUATED THE FOUR VENDORS. WE HAD TWO THAT CLEARLY CAME OUT KIND OF NECK AND NECK IN ROUND 1, SO WE WENT ON TO INTERVIEWS. AND THEN THROUGH THE INTERVIEW PROCESS, AFTER INTERVIEWING BOTH OF THE TOP TWO FIRMS, WE FELT THAT ONE ROSE TO THE TOP AND AS YOU CAN SEE THE SCORE THERE, VENDOR B ON THE LIST THERE. SO WE'LL BE MOVING FORWARD RECOMMENDING THAT AS THE SELECTION. SOME OF THE SIMILAR DUE DILIGENCE, OVER 170 VENDORS NOTIFIED, WE HAD 12 OF THEM AT THE PRE-CONFERENCE. 
          AGAIN, 11 WERE SUBMITTED BUT SEVERAL WERE NONRESPONSIVE. 
          WE DID HAVE FOUR QUALITY PROPOSALS, NO MATERIAL FINDINGS SIMILAR TO THE OTHER ONE THAT CAUSED ANY RED FLAGS. SO WE'LL PROPOSE THAT VENDOR AS A SELECTION AT CITY COUNCIL AT THE NEXT ONE WE CAN. 
          AND THEN FINALLY, ANOTHER COMMUNITY CENTER, KENWOOD COMMUNITY CENTER IN DISTRICT ONE, SIMILAR PROCESS, AGAIN, WE DID AN RFCSP FOR THIS AND THIS IS REPLACING THE EXISTING KENWOOD COMMUNITY CENTER, WHICH IS NO LONGER EXISTING, IT'S ALREADY BEEN DEMOLISHED AND SHUT DOWN, SO WE WANT TO BUILD IT BACK. AGAIN, ABOUT 425 DAYS. THIS ONE IS JUST UNDER $6 MILLION IS OUR ESTIMATED VALUE AND IT WAS ALSO THROUGH CERTIFICATES OF OBLIGATION. WE HAD A NUMBER OF SUBMITTALS ON THIS ONE, 16 SUBMITTALS CAME THROUGH. 
          FEW OF THEM, I THINK FIVE WERE DEEMED NONRESPONSIVE, BUT -- PROPOSALS. -- TEAM, HUMAN SERVICES DEPARTMENT, SEVERAL MEMBERS WERE ABLE TO SCORE ON THIS ONE. THROUGH THE SCORING PROCESS, WE WERE ABLE TO SELECT THE BEST ONE THAT REALLY ROSE TO THE TOP ON HIGH EXPERIENCE, BACKGROUND, QUALIFICATIONS AND UNDERSTANDING OF THE PLAN, ET CETERA, SO WE'LL BE RECOMMENDING MOVING FORWARD WITH VENDOR A ON THIS LIST. AGAIN, SIMILAR, 170 VENDORS NOTIFIED, SEVEN WERE AT THE PRECON, 16, AGAIN, SUBMITTED, BUT FOUR WERE NONRESPONSIVE, AND ONE WAS NONRESPONSIVE FOR -- DIDN'T HAVE THE FULL PROPOSAL DOCUMENTS. 
          SO NO MATERIAL FINDINGS. ANOTHER GOOD ONE HERE FOR BOTH OF THOSE. 
          AND I KNOW THAT WAS QUICK, THAT'S THREE GOOD PROJECTS TO BUILD THE COMMUNITY CENTERS, FIRE STATIONS, SO WE'RE EXCITED TO GET THEM SELECTED AND UNDER CONSTRUCTION HOPEFULLY THIS SUMMER. 
          BE HAPPY TO ANSWER ANY QUESTIONS. >> VIAGRAN: THANK YOU. 
          AND I KNOW THAT WAS QUICK, AND I AM -- ITEMS 4 AND NUMBER 5 ARE IN MY DISTRICT, SO THEY'RE SPECIFICALLY A CONCERN, SO AS I SPEAK TO Y'ALL TODAY AND AS WE CONSIDER THIS CONSIDERATION WITH THE ENTIRE AUDIT TEAM, THIS IS -- OF COURSE, I WANT QUALITIED PROJECTS WITH HIGH SCORES; HOWEVER, WHEN I LOOK AT ITEM D FOR -- WHEN I LOOK AT D, SELECTION D, FOR ITEM 4 AND 5, THE DIFFERENCES BETWEEN WHAT WE HAD, I'M GOING TO NEED AN EXPLANATION ON BECAUSE IF YOU'RE TELLING ME THE TOP VENDOR -- AND WE'LL START WITH THE FATHER ROMAN CENTER,  THE TOP VENDOR IS -- BECAUSE I'M PUTTING MY CITY COUNCIL HAT ON WHERE WE REPRESENT A WHOLE DISTRICT THAT IS LOOKING AT A BUDGET SHORTFALL. WHEN WE GET TO THE ITEM WITH THE RECOMMENDED AWARDS AND WE LOOK AT THE PRICE PROPOSAL, VENDOR A GOT 11 POINTS, BUT VENDOR F GOT 15. AND VENDOR E GOT 14. 
          AND THE MAX IS 15. THAT SAYS SOMETHING TO ME IN TERMS OF -- I GET THE EXPERIENCE WITH THE SAN ANTONIO REGION AND PAST PERFORMANCE, WE WANT THAT. WE WANT EXPERIENCE IN BACKGROUND, BUT AS WE COME TO THIS -- AND I KNOW THIS -- I KNOW THIS AREA WELL IN TERMS OF T THE THE FATHER ROMAN CENTER, I DON'T WANT TO SEE A BUNCH OF CHANGE 
          [00:15:07]
ORDERS BECAUSE I'VE GOT VENDOR A OR B THAT DOESN'T UNDERSTAND WHERE THEY'RE BUILDING IN. THAT IS MY CONCERN. THE SAME THING WITH THE FIRE STATION 21 IS THEIR ITEM -- THERE WAS A GAP BETWEEN THE PROPOSAL -- THE ITEM -- THE 15 POINTS, WHY AREN'T OUR VENDORS A AND B HITTING THE 15-POINTS AND HOW IS IT THAT A VENDOR F OR G CAN DO THAT? AND I THINK YOU NEED TO EXPLAIN THAT TO THE COUNCILMEMBERS BEFORE WE GET -- BECAUSE I THINK IT'S GOING TO BE A QUESTION AS WE HEAD INTO WHERE WE ARE LOOKING AT BUDGET AND WHERE WE CAN FIND MONIES IS WHY CAN'T OUR VENDOR A -- THE ONES WE CHOOSE, MEET THE PRICE PROPOSAL OF THAT? IS IT BECAUSE THIS IS CORPORATE AND THIS IS -- WE'RE GOING TO NEED AN EXPLANATION, BECAUSE WE'RE GOING TO NEED TO ANSWER. 
          SO IF WE COULD -- IF I COULD GET A BRIEFING ON THAT BEFORE WE HEAD -- AND WHEN WILL THIS BE GOING TO A SESSION? JUNE 18TH? 
          >> SHANNON: I THINK WE'RE TRYING TO MOVE THESE RIGHT BEFORE THE BREAK. 
          >> VIAGRAN: AND I WOULD LOVE THAT BEFORE THE BREAK, BUT I NEED THE 
          EXPLANATION BEFORE THAT FOR THESE TWO. >> AND JUST TO KIND OF -- BEFORE MIKE KIND OF ADDS HIS CONTEXT, JUST FROM A PROCESS STANDPOINT, WHEN WE'RE ACTUALLY LOOKING AT -- THESE ARE OUR CSPS. 
          THE EVALUATION COMMITTEE IS CHARGED WITH LOOKING AT CATEGORIES A, B AND C, EXPERIENCE, BACKGROUND AND QUALIFICATIONS, UNDERSTANDING THE PROJECT PLAN, AND EXPERIENCE WITH THE SAN ANTONIO REGION AND PAST PERFORMANCE, AND SO THEY SCORE THAT FROM A PROCESS STANDPOINT. ONCE THEY HAVE COMPLETED THEIR SCORING, WE DO NOT SHARE WITH THEM THE PRICING, BECAUSE WE'RE TRYING TO NOT INFLUENCE THE EVALUATION COMMITTEE BASED ON PRICE. 
          THEIR FOCUS IS ON THE QUALITY OF THE PROPOSAL, THE QUALITY OF THE WORK, THEIR PAST EXPERIENCE. AS THEY'RE LOOKING AT THAT, THAT SHOULD INFLUENCE AND GET THEM COMFORTABLE WITH PRICE ONCE WE DISCLOSE IT. 
          SO ONCE THEY ARE COMFORTABLE, WE DISCLOSE THE PRICE TO THEM AND THEY DO NOT HAVE ANY ABILITY TO INFLUENCE THAT UNTIL THEY GET INTO THE ACTUAL SELECTION. THIS IS ALSO AN RFCSP, UNDER STATE STATUTE, THERE'S ALSO LIMITED ABILITY TO NEGOTIATE THESE ITEMS BECAUSE IT'S TANT TA TANTAMOUNT TO A LOW BID BUT YOU CAN ALSO CONSIDER EXPERIENCE, BACKGROUND AND QUALIFICATIONS. I CAN ASK LAURA TO COMMENT AS FAR AS THE STATUTE PIECE, BUT WE CAN GO BACK AND LOOK AT COMPARISONS BETWEEN VENDOR A AND THOSE SUBSEQUENT VENDORS ON THE PRICE DIFFERENTIAL WITH MIKE AND HIS TEAM TO SEE IF THERE IS A NOTICEABLE DIFFERENCE, BUT SOME OF IT MAY JUST BE THE QUALITY OF THE WORK, THE NATURE OF THE -- I'LL TURN IT OVER TO MIKE IF HE WANTS TO TALK MORE 
          ABOUT THAT. >> SHANNON: YEAH, I THINK I'LL ECHO A LITTLE BIT. 
          CERTAINLY WHEN WE'RE EVALUATING THE TOP 75 POINTS, RIGHT, A, B AND C THERE. WE GO THROUGH THOSE PROPOSALS PRETTY THOROUGHLY, ALL COMMITTEE MEMBERS, WE GET A CHANCE TO SCORE EACH SECTION. 
          WE HAVE TO JUSTIFY OUR REASONS FOR OUR SCORES, THOSE TYPE OF THINGS. 
          WHEN WE GET TO THE POINT, AND COUNCILWOMAN, WHEN YOU SEE 15 ON THIS SCREEN, FOR EXAMPLE, VENDOR C, THAT INDICATES THEY WERE PROBABLY THE LOWEST PRICE. SO THEY WERE GIVEN THE MAXIMUM POINTS. 
          WHEREAS VENDOR D IS THE LOWEST SCORE, THEY WERE PROBABLY THE HIGHEST, OKAY. THAT BEING SAID, THEY'RE ALL RELATIVELY CLOSE, 15 AND 13 AND 13 ON THOSE FIRST THREE, A, B AND C, SO THAT MEANS THAT THEIR PRICES THAT THEY PROPOSED WERE PRETTY CLOSE TO EACH OTHER. 
          WE DIDN'T SEE A BIG SIGNIFICANT DIFFERENCE, ESPECIALLY ON VENDORS A AND B, YOU CAN SEE THEIR PRICE WAS VERY SIMILAR AS YOU CAN SEE. 
          BUT, AGAIN, IT'S A COMBINATION OF ALL THESE. 
          THESE ARE NOT LOW BID CONTRACTS, WE'RE NOT LOOKING FOR GENERALLY THE LOWEST BIDDER, ALTHOUGH WE WANT A PRICE WITHIN OUR BUDGET. 
          THAT'S HOW I THINK I'LL EXPLAIN IT, BUT WE CAN HAVE MORE CONVERSATION. 
          >> VIAGRAN: WE'RE GOING TO NEED TO HAVE MORE CONVERSATIONS. 
          I KNOW THIS ISN'T LOW BID AND I'VE BEEN THE BIGGEST CHAMPION LOW BID VERSUS BEST VALUE, AND IT COMES DOWN TO WHO'S IN THE CITY, BUT WHEN -- FOR ME, IT'S WHO'S LOCAL. BUT WE CAN'T DO LOCAL. AND IT'S HARD FOR ME TO LOOK AT THIS AND BE LIKE, OH, YEAH, THIS IS LOCAL, THEY'RE GOING TO HIRE LOCAL. IT JUST MAKES -- IT JUST MAKES A HUGE DIFFERENCE BECAUSE I DON'T WANT TO SEE A BUNCH OF CHANGE ORDERS. 
          I DON'T WANT -- AND, YOU KNOW, WE KNOW -- WE'VE BEEN DOING -- YOU'VE BEEN DOING THIS LONG ENOUGH, WE'VE BEEN DOING THIS LONG ENOUGH THAT WHO'S GOING TO COME AND WHO'S GOING TO COME WITH CHANGE ORDERS. 
          THE OTHER THING IS, THIS IS WHY IT'S IMPERATIVE THAT WE COMMUNICATE WITH THE COMMUNITY AND THE COUNCILMEMBERS. I KNOW WE HAD JUST REBUILD FATHER ROMAN CENTER IN PARTICULAR. GEOGRAPHICALLY, WHAT IS 
          [00:20:02]
THERE, IT IS REALLY HARD TO BUILD THERE. SO -- THESE BUILDERS KNOW THAT WE'RE GOING TO REPLACE THIS CENTER WITH SOMETHING THAT'S GOING TO WITHSTAND, BECAUSE WE -- THE FORMER COUNCILWOMAN JUST PUT UP THE ROOF. SO I'M GOING TO NEED A LITTLE MORE INFORMATION BEFORE WE TAKE THIS -- I'M GOING TO APPROVE THIS NOW BECAUSE I WANT -- AND BECAUSE I DON'T SEE WHO VENDOR A IS, IT COULD BE SOMEBODY THAT I'M LIKE, OH, YEAH, THIS PERSON'S GOING TO TAKE CARE OF IT, GREAT. 
          BUT I -- BUT I WILL HAVE THE QUESTION OF WHY CAN VENDOR F GIVE US A LOWER PRICE THAN VENDOR A, AND IF IT'S BECAUSE VENDOR A'S LIKE, WELL, I DON'T DO CHANGE ORDERS, THAT'S GREAT. BUT I'M GOING TO NEED MORE INFORMATION BECAUSE WHERE WE -- WHERE WE WERE IN A POSITION WHERE WE WERE -- WE DIDN'T -- WE WERE LIKE, IT'S NOT LOW BID, WE CAN TAKE THESE INTO CONSIDERATION, WE ARE NOW IN A POSITION FINANCIALLY WHERE WE NEED TO LOOK AT WHAT IS MOST COST EFFECTIVE. AND SO I LOOK FORWARD TO HAVING THOSE CONVERSATIONS. I LOOK FORWARD TO MOVING THIS FORWARD, SAME WITH THE FIRE STATION. I THINK WHAT I SEE IN KENWOOD IS A CHOICE, BUT, AGAIN, TALKING WITH THE COUNCILMEMBER IN DISTRICT ONE, BECAUSE IT IS -- OUR COMMUNITY IS -- ONCE THE CONSTRUCTION COMPANY IS ANNOUNCED AND WHO IS GOING TO GO IN, THEY'RE GOING TO HAVE EVEN MORE QUESTIONS AND INPUT FOR THIS. SO THAT'S JUST -- AS WE MOVE FORWARD, IT'S -- AND AS WE ARE AUDIT COMMITTEE MEMBERS, IT'S MEASURING WHAT WE NEED FOR OUR DISTRICT VERSUS WHAT WE NEED FOR THE BUDGET OF THE CITY ALSO. SO I LOOK FORWARD TO HEARING FROM MY OTHER 
          MEMBERS ON THE AUDIT COMMITTEE. >> JUST BRIEFLY, THE PROPOSALS ARE JUDGED ON THEIR OWN. IN OTHER WORDS, THEY'RE NOT COMPARED TO EACH OTHER. IS THAT RIGHT? LIKE, IN OTHER WORDS, YOU KNOW, EXPERIENCE, BACKGROUND, QUALIFICATIONS, VENDOR C, YOU JUST ARE LOOKING AT VENDOR C IN ISOLATION FOR THEIR EXPERIENCE, BACKGROUND AND QUALIFICATIONS TO GET THAT SCORE OF 22, NOT LOOKING AT THEM IN RELATION TO A AND B? 
          >> SHANNON: I WOULD SAY IT'S A LITTLE BIT OF BOTH, COUNCILMAN. 
          >> WHYTE: OKAY. >> SHANNON: WE GET THE FOUR -- WE GET THE FOUR PROPOSALS, WE REVIEW EACH OF THEM INDIVIDUALLY, WE CERTAINLY COMPARE THEIR EXPERIENCE THAT THEY'RE BRINGING, WHETHER IT'S HIGH, EXCELLENT, VERSUS SOMEONE ELSE'S, A, B AND C. SO IT'S A LITTLE BIT OF COMBINATION OF BOTH. THEIR EXPERIENCE WITH REGION SAN ANTONIO AND PAST PERFORMANCE, MAYBE THAT'S A LITTLE BIT MORE INDIVIDUAL, BUT MAYBE THEIR PROPOSED PLAN ON THE PROJECT COMPARED TO THE OTHER FOUR, THAT MIGHT BE A LITTLE BIT MORE COMPARATIVE. BUT WE'RE ALL IN A ROOM, WE'VE ALL EVALUATED EACH ONE INDIVIDUALLY, BUT THEN WE TALK ABOUT THEM, HEY, VENDOR A'S PROPOSAL IS A LITTLE BETTER THAN VENDOR C'S PROPOSAL 
          BECAUSE OF... WHATEVER THOSE REASONS ARE. >> WHYTE: THAT MAKES ME FEEL A LITTLE BIT BETTER THEN, I GUESS. I HATE WHEN I LOOK AT THESE THINGS AND I SEE SUCH A DISPARITY BETWEEN THE DIFFERENT VENDORS BECAUSE, YOU KNOW, IF IT WASN'T LIKE THAT, I WOULD LOOK AT THIS AND SAY, HOW THE HECK IS IT THAT ONLY TWO VENDORS WE COULD FIND CAN, YEAH, LOOK GOOD, RIGHT? WHY ONLY TWO? BUT I GUESS WHAT YOU'RE TELLING ME IS, WELL, C AND D WERE COMPARED TO A AND B IN THIS SCORING, AND SO THAT'S WHY THE SCORES LOOK LOWER, BECAUSE THEY JUST DIDN'T 
          MESH SMEASURE UP TO THE OTHER TWO. >> SHANNON: YEAH. 
          AND TO FURTHER EXPLAIN, IN THIS PARTICULAR SLIDE, WHEN WE STARTED WITH FOUR, TWO WERE VERY CLOSE AND TWO WERE, YOU KNOW MAYBE NOT AS CLOSE. 
          SO WE CHOSE, AS A GROUP, TO NOT JUST GO BY THE SUBMITTED PROPOSALS IN WRITING, WE FELL IT WAS IMPORTANT TO ACTUALLY BRING THEM IN FOR A FULL INTERVIEW TO DISCUSS THEIR EXPERIENCE, THEIR PLAN, HOW THEY'RE GOING TO MAKE THE JOB WORK SUCCESSFULLY, THINGS -- ASKING QUESTIONS LIKE, WHAT ARE YOUR CHANGE ORDER PROCESSES AND THOUGHTS AND THOSE TYPE 
          OF THINGS. >> WHYTE: YEAH. >> SHANNON: AND THEN WE FURTHER WENT TO ONE SELECTION, WHICH I THINK IS THE NEXT SLIDE -- OR 
          MAYBE TWO SLIDES OVER. >> WHYTE: YEAH. YEAH. 
          OKAY. WELL, IT'S IMPORTANT. AND WHOEVER'S DOING THIS FIRE STATION IN DISTRICT THREE, I MEAN, THEY'VE GOT TO KNOW, COUNCILWOMAN'S GOING TO BE ALL OVER THEM IF IT'S NOT OF THE HIGHEST 
          QUALITY. >> SHANNON: I'LL BE ALL OVER THEM BECAUSE SHE'LL 
          BE ALL OVER ME. >> WHYTE: THAT'S RIGHT. ALL RIGHT. 
          THANKS, MIKE. >> VIAGRAN: COUNCILWOMAN MEZA GONZALEZ? 
          >> GONZALEZ: THANK YOU. JUST A COUPLE OF QUESTIONS. 
          I WISH THIS SAID FIRE STATION 37, BUT ONE DAY WE'LL GET IT. 
          SO THAT'S MY GOAL, AT LEAST. I HAD -- KIND OF IN THAT 
          [00:25:02]
SAME VEIN AS COUNCILMAN WHYTE, ON THE EXPERIENCE AT SAN ANTONIO REGION, I FEEL LIKE PAST PERFORMANCE SHOULD BE ITS OWN BOX, ESPECIALLY IF WE'RE TALKING ABOUT CHANGE ORDERS AND THE AMOUNT OF CHANGE ORDERS, WHERE DOES THAT -- WHERE DO CHANGE ORDERS COME INTO PLAY IN ANY OF 
          THESE? A THROUGH E? >> SHANNON: IT WOULD -- I WOULD SAY HEAVY ON REALLY B AND C. C IS ONE WHERE WE LOOK AT HAVE THEY WORKED WITH US BEFORE ON SIMILAR-TYPE PROJECTS? AND WHAT HAS OUR EXPERIENCE BEEN WITH THEM? SO A LOT OF TIMES, ONE OF MY TEAM MEMBERS THAT HAS WORKED WITH THEM ON A PROJECT, MAYBE AT THE PROJECT MANAGER LEVEL, WE KNOW WERE THEY -- DID THEY HAVE A HIGH NUMBER OF CHANGE ORDERS THAT WERE NOT WARRANTED? DID THEY -- DID THEY SUBMIT EVERYTHING ON TIME? DID THEY FOLLOW THE CONTRACT REQUIREMENTS? DID THEY DELIVER THE PROJECT ON TIME AND UNDER BUDGET? SO ALL THAT'S KIND OF ROLLED UP IN C. AND SOME OF IT'S IN THE PROPOSED MANAGEMENT PLAN IN B, I'D SAY. IT'S A HEAVY PART OF OUR CONVERSATION WHEN WE'RE 
          EVALUATING THESE PROPOSALS. >> GONZALEZ: AND I GUESS THE EXPERIENCE WITH SAN ANTONIO REGION, HOW IS THAT DIFFERENT FROM A, 
          EXPERIENCE AND BACKGROUND? >> SHANNON: WELL, YOU MAY HAVE -- THESE ARE ALL COMMERCIAL BUILDINGS, YOU KNOW, THEY'RE NOT HOUSING, SO THEY MAY HAVE A LOT OF COMMERCIAL EXPERIENCE IN OTHER AREAS OF EITHER, YOU KNOW, THE STATE OF TEXAS AND OTHER AREAS OF THE COUNTRY. 
          THEY MAY HAVE A LOT OF EXPERIENCE THAT'S NOT NECESSARILY -- THEY HAVEN'T WORKED WITH US YET, BUT THEY CAN SAY THAT I'VE WORKED WITH SUCH AND SUCH OWNERS OR JURISDICTIONS, AND I WAS SUCCESSFUL AND HERE'S OUR EXPERIENCE WITH THEM AND WE CAN DO REFERENCE CHECKS ON THOSE TYPE OF THINGS. SO I THINK IT'S IMPORTANT, AND THAT'S WHY THAT'S GOT THE 35 HAS THE HIGHEST NUMBER OF POINTS AVAILABLE. 
          BUT WE DO THINK IT'S IMPORTANT TO CONSIDER THOSE THAT HAVE DONE WORK WITH US AND DONE IT WELL IN THE PAST, RIGHT? THE PROOF IS IN THE 
          PUDDING, REALLY. >> GONZALEZ: OKAY. AND I GUESS ON COUNCILMAN WHYTE'S POINT ABOUT JUST THE, YOU KNOW, VERY SMALL AMOUNT OF VENDORS THAT WE GET, YOU KNOW, DO WE HAVE THE CAPACITY EVEN ON THE SUBCONTRACTOR SIDE, IF WE ONLY HAVE SO MANY EVEN APPLYING FOR THE FULL CONTRACTOR RFP. 
          >> SHANNON: SURE. >> GONZALEZ: DO WE HAVE A CAPACITY ISSUE ON THE 
          SUBCONTRACTOR SIDE. >> SHANNON: WELL, IT'S ALWAYS AN ISSUE -- IT'S A CONCERN. AND THEIR PROPOSED PLAN HAS TO TALK ABOUT HOW THEY'RE GOING TO STAFF UP TO DELIVER THE JOB IN THE TIME WE WANT IT. 
          SO RIGHT NOW, WE DON'T BELIEVE THERE'S A SUBCONTRACTOR PROBLEM ON OUR CURRENT PROJECTS, AND I'M GOING TO INCLUDE THESE, ON OUR FUTURE ONES. SO WE HAVE CONSTANT COMMUNICATIONS WITH OUR GENERAL CONTRACTING GROUPS, NOT ONLY INDIVIDUAL FIRMS, BUT WE MEET REGULARLY WITH ASSOCIATED BUILDING CONTRACT -- AUDIO] -- ENSURE THAT THEIR STAFFED UP TO MEET WHAT WE'RE PUTTING OUT ON THE STREET, SO WE BELIEVE WE'RE OKAY RIGHT NOW, BUT IT'S A CONSTANT DISCUSSION WITH THEM. BUT I DON'T THINK THAT THERE WILL BE A PROBLEM 
          WITH THESE PROJECTS. >> GONZALEZ: AND THEN DOES YOUR DEPARTMENT, I GUESS, HAVE THE SUFFICIENT CAPACITY ON THE PROJECT MANAGEMENT 
          SIDE TO MANAGE BOTH OF THESE SIMULTANEOUSLY? >> SHANNON: YES. 
          >> GONZALEZ: AND EVERY -- >> SHANNON: YES. 
          >> GONZALEZ: THANK YOU. THOSE ARE ALL MY QUESTIONS. 
          >> PACHECO:  I THINK THIS IS MORE QUESTION ON PROCESS, BUT NUMBER 5, THIS IS FOR THE FIRE STATION 21. IT LOOKS LIKE IT'S ALMOST $10 MILLION, BUT VENDOR A AND VENDOR B, THERE WAS A DIFFERENCE IN SECTION B OF .20, RIGHT? AND THEN IF YOU SCROLL DOWN, IT LOOKS LIKE THIS IS WHEN YOU INTERVIEWED THEM, THERE'S A SIGNIFICANT DIFFERENCE, AND IT ACTUALLY CAUSED THE VENDOR SELECTION TO SWITCH, RIGHT? SO MY QUESTION IS, IS THERE A REASON -- IF THERE'S SUCH A -- ALMOST A SIX-POINT DISPARITY AFTER THE INTERVIEW THAT WE'RE NOT INTERVIEWING THESE VENDORS FROM THE START, SINCE THAT CAUSES SUCH A DIFFERENCE IN 
          TURNOUT AND SCORING? >> SHANNON: WELL, I WOULD JUST SAY THIS:  THE INTERVIEW PROCESS IS WHERE THE COMMITTEE MEMBERS -- THAT WE GET A PROPOSAL, A PRESENTATION FROM THEM GENERALLY, BUT THEN WE GET TO ASK VERY POINTED QUESTIONS AND GET FEEDBACK AS TO HOW THEY'RE GOING TO DELIVER THE PROJECT. SO IT MIGHT BE, YOU KNOW, SIMILAR TO HIRING SOMEONE FOR A JOB, RIGHT? THEY'RE GOING TO DELIVER THE JOB ON SOME KEY ISSUES THAT WE KNOW ARE GOING TO BE DIFFICULT ON A FIRE STATION. A FIRE STATION IS, YOU KNOW, A LITTLE BIT CHALLENGING OF A PROJECT. IT'S GOT SOME TECHNICAL THINGS IN THERE FOR THE APPARATUS BASE, EMERGENCY ROOMS, THOSE TYPE OF THINGS -- EMERGENCY EQUIPMENT ROOMS, THOSE TYPE OF THINGS, SO HIGH EXHAUST. 
          SO I THINK THE INTERVIEW PROCESS DOES SOMETIMES LOWER SOMEONE'S SCORE, BECAUSE WE HAVE MORE INFORMATION. SOMETIMES IT INCREASES SOMEONE'S SCORE BECAUSE IT ANSWERS SOME QUESTIONS THAT WE MIGHT HAVE HAD BY JUST REVIEWING THEIR WRITTEN PLAN. SO IT'S AN IMPORTANT PART OF THE PROCESS, ESPECIALLY WHEN WE DO THE INITIAL REVIEW AND IT'S 
          [00:30:01]
SO CLOSE. AND YOU CAN SEE ON THIS ONE, THEY WERE REALLY ONLY A POINT APART, IF YOU LOOK AT THAT A THROUGH C, WHICH LED US TO NEEDING AN INTERVIEW TO KIND OF FURTHER VET THEM. 
          >> PACHECO:  I THINK MY QUESTION IS MORE JUST FOR US FOR PROCESS, RIGHT, DEPENDING ON DOLLAR AMOUNT, SHOULD THAT BE A REQUIREMENT, IF IT WAS -- IF IT FORCED THE SELECTION OF A VENDOR TO ESSENTIALLY SWITCH, RIGHT? SO THAT'S JUST A BIT CONCERNING THERE. 
          >> I THINK JUST FOR CLARIFICATION, ARE YOU SUGGESTING THAT WE 
          INTERVIEW ALL OF THEM FROM THE START? >> PACHECO:  I WOULD SAY DEPENDING ON DOLLAR AMOUNT, RIGHT, TO YOUR ANALOGY ABOUT AN INTERVIEW, IF THIS IS A SIGNIFICANT AMOUNT OF SPEND FOR OUR CITY TAXPAYERS, WE SHOULD POSSIBLY LOOK INTO THAT TO ENSURE THAT WE'RE GETTING THE FULL DETAIL FROM THESE VENDORS, BECAUSE IT SOUNDS LIKE ONCE WE INTERVIEW THEM, IT ACTUALLY SWITCHES VENDOR SELECTION, RIGHT? 
          >> SHANNON: NOT ALWAYS, NO. SOMETIMES AFTER THE INTERVIEW, IT COULD STAY -- YOU KNOW, THEY WERE OUR TOP CHOICE THROUGH THE INITIAL STEP, AND THEY MIGHT BE THE TOP CHOICE AFTER THE INTERVIEWS. IN THIS PARTICULAR ONE, I THINK THERE WAS ENOUGH INFORMATION THAT THE COMMITTEE FELT WAS, HEY, THEIR SCORE SHOULD BE A LITTLE HIGHER OR THEIR SCORE SHOULD BE A LITTLE LOWER, WHICH CAUSED THE FINAL SCORE IN THE SELECTION TO SWITCH. SO I DON'T THINK WE CAN SAY IT'S ALWAYS ONE WAY OR THE OTHER. IT'S JUST -- IT'S HOW THAT PARTICULAR INTERVIEW GOES WITH THAT PARTICULAR CONTRACTOR. 
          >> THIS DOESN'T HAPPEN VERY FREQUENTLY, BUT IT DUGS HAPPEN. 
          AND WE DO FROM TIME TO TIME, AS WE LOOK AT THE EVALUATION, AS WE WORK WITH THE EVALUATION COMMITTEE, IF THERE ARE VERY HIGH-PROFILE CONTRACTS, WE WILL SIT DOWN WITH THE COMMITTEE AND WE WILL INTERVIEW ALL OF THEM FROM THE START. BUT THIS HAS WORKED VERY SUCCESSFULLY, ADMINISTRATIVELY, IT HELPS BECAUSE WE'RE NOT TYING UP STAFF TIME IN INTERVIEWS FOR EXTENSIVE PERIOD OF TIMES, ESPECIALLY WITH THE VOLUME OF CONTRACTS THAT MIKE AND HIS TEAMWORK ON. 
          SO WE SHORT LIST AND THEN WE COME BACK WITH THE INTERVIEWS. 
          IN THIS CASE, THE INTERVIEWS PRODUCE AD CHANGE IN THE SCORING AND FLIPPED THE RECOMMENDATION. . 
          >> VIAGRAN: AND WE'LL BE FORMING A SUBCOMMITTEE FOR AUDIT COMMITTEE TO DISCUSS SOME OF THE PROCEDURES AS WE MOVE FORWARD AND SOME OF THE IDEAS THAT HAVE COME OUT WITH, YOU KNOW, CUSTOMER SATISFACTION, WHERE WE MOVE FORWARD. TROY AND BEN WILL BE A PART OF IT. 
          I THINK RIGHT NOW, WHAT I'M WAITING FOR IS TO GET THROUGH THE BUDGET TO SEE WHERE WE NEED TO PRIORITIZE AND SEE IF THERE IS A -- AS I MENTIONED WHEN I STARTED THIS, IF THERE IS A DESIRE FOR US AS A COUNCIL TO START LOOKING AT THOSE PRICE PROPOSALS OR WEIGHING THOSE MORE HEAVILY, BUT I THINK THAT'S A COUNCIL DISCUSSION AFTER WE COME THROUGH BUDGETS AND SEE WHERE WE HAVE THE CUTS THERE. 
          WE DON'T WANT TO DO EVERYTHING ON THE LOW BUDGET END, BUT WE DO NEED TO SET SOME KIND OF PARAMETERS ABOUT WHAT WE CALL BEST VALUE. 
          AND I THINK BEST WOULD BE GETTING OUR CITIZENS -- OUR AUDIT COMMITTEE MEMBERS TO HELP AND THEN ALSO BEN AND TROY TO KIND OF LAY DOWN WHAT WAS DONE IN THE PAST. I KNOW WHEN I FIRST GOT HERE, EVERYTHING WAS LIKE LOW BID, LOW BID'S THE BEST, AND THEN WE'VE KIND OF TAKEN THAT AND USED THAT IN DIFFERENT ASPECTS. BUT WE ARE -- WE ARE WANTING TO MAKE SURE THAT WE CAN -- WE CAN SAVE WHERE WE CAN. 
          AND I JUST WANT TO SAY, I APPRECIATE THE COMMITTEE SO MUCH THAT LOOKS OVER THE CRITERIA. AT NO POINT DO I WANT COUNCILMEMBERS TO DO THIS. IT'S JUST SOMETHING ELSE WE DON'T WANT TO DO, BUT I APPRECIATE IT, BUT I THINK IT'S IMPORTANT TO UNDERSTAND THAT WHEN IT COMES -- WHEN EVERYTHING IS SAID AND DONE, WE TAKE IT BACK -- IT'S THE COUNCILMEMBERS AND THE COUNCIL OFFICE THAT TAKES IT BACK INTO THE COMMUNITY AND GETS THEM ENTHUSIASTIC ABOUT THIS PROCESS. 
          SO MY QUESTION IS, DO WE NEED TO TAKE THESE ONE AT A TIME AS MOTIONS, OR CAN 
          WE TAKE THEM ALTOGETHER? >> THEM ALTOGETHER? SO CAN I GET A MEETION WHERE SOMEONE MOTIONS FOR 4, 5 AND 6 TO MOVE FORWARD TO COUNCIL FOR -- 
          >> NO FURTHER DISCUSSION. ALL IN FAVOR, SAY AYE. (AYES.) 
          >> VIAGRAN: ALL OPPOSED, SAY NO. MOTION CARRIES. 
          THANK YOU, MIKE. ALL RIGHT. WE'RE GOING TO MOVE ON, MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM 7 CLERKDZ ITEM 7 IS APPROVAL TO PROCEED WITH SCHEDULING ONE CONTRACT FOR CITY COUNCIL CONSIDERATION TO PROVIDE THE SAN ANTONIO POLICE DEPARTMENT WITH TOXICOLOGY LABORATORY SERVICES FOR AN ESTIMATED TOTAL VALUE OF $5,600,000 FOR THREE YEARS WITH TWO ONE-YEAR OPTIONS TO RENEW. 
          >> VIAGRAN: ALL RIGHT. THE FLOOR IS YOUR. >> THANK YOU, COUNCILWOMAN, GOOD MORNING, CHAIR AND COMMITTEE MEMBERS. 
          MY NAME IS RICK RILEY, I'M THE ASSISTANT DIRECTOR FOR THE SAN 
          [00:35:01]
ANTONIO POLICE DEPARTMENT, AND TODAY I'LL PRESENT A POSTSOLICITATION BRIEFING ON SAPD'S REQUEST FOR TOXICOLOGY SERVICES. 
          SO THE DEPARTMENT ISSUED A REQUEST FOR PROPOSAL FOR A QUALIFIED AGENCY TO PROVIDE THOSE TOXICOLOGY LABORATORY SERVICES. THE ANALYSIS OF BLOOD SAMPLES ASSOCIATED WITH DWIS, DUIS, INTOXICATION, ASSAULT AND INTOXICATION MANSLAUGHTER. YOU SEE THERE THE PROPOSED TERM IS THREE YEARS, TWO ONE-YEAR OPTIONS. ESTIMATED VALUE PER YEAR IS 1.12 MILLION, NOT TO EXCEED THE 5.6 MILLION. AND THE CURRENT CONTRACT THAT WE'RE UNDER EXPIRES IN SEPTEMBER OF THIS YEAR. 
          SO WE RECEIVED TWO SUBMITTALS TO SCORE, AND AS YOU CAN SEE FROM THE SCORE MATRIX ON THE SLIDE, VENDOR A SCORED SIGNIFICANTLY HIGHER IN ALL CATEGORIES, INCLUDING THE EXPERIENCE, BACKGROUND AND QUALIFICATION, AS WELL AS THE PROPOSED PLAN. ADDITIONALLY, YOU'LL NOTICE THAT VENDOR A IS A LOCAL -- RECEIVED THE LOCAL PREFERENCE PROGRAM POINTS BECAUSE IT'S A LOCAL BUSINESS. AND AT THE END OF THE DAY, 76 POINTS FOR VENDOR A COMPARED TO 46 FOR VENDOR B. 
          EVALUATION COMMITTEE OF DEPUTY CITY MANAGER, MARIA VILLAGOMEZ, SAPD LEADERSHIP AND A REPRESENTATIVE FROM THE BEXAR COUNTY DA'S OFFICE DECIDED TO SELECT VENDOR A TO MOVE FORWARD WITHOUT INTERVIEW. 
          WE REACHED OUT TO 66 VENDORS, TWO VENDORS WERE AT THE PRESUBMITTAL CONFERENCE. WE RECEIVED RESPONSES FROM BOTH OF THOSE. 
          IN FACT, NO MATERIAL FINDINGS ON EITHER THE MINIMUM REQUIREMENTS REVIEW OR THE DUE DILIGENCE REVIEW MOVING FORWARD. 
          SO THE DEPARTMENT WOULD LIKE TO MOVE THIS FORWARD FOR FULL COUNCIL CONSIDERATION IN AUGUST, AND I HAVE REPRESENTATIVES FROM SAPD'S UNIT THAT DEALS WITH THIS TYPE OF STUFF, IF YOU HAVE ANY 
          OPERATIONAL QUESTIONS. >> VIAGRAN: THANK YOU, RICK. 
          CAN WE GET A MOTION AND A SECOND TO CONTINUE DISCUSSION? 
          >> SECOND. THANK YOU, VERY NECESSARY. 
          I'M GLAD WE WERE ABLE TO FIND SOMEBODY LOCAL TO HANDLE THIS PROCESS. 
          I DON'T HAVE ANY QUESTIONS. I THINK -- I THINK THIS IS SOMETHING THAT'S NECESSARY AND I APPRECIATE YOUR DUE WHENEVER I SEE THAT 66 PEOPLE REACHED OUT AND ONLY TWO PEOPLE RESPONDED, MY ECONOMIC WORKFORCE DEVELOPMENT SIDE SAYS, OOH, AN OPPORTUNITY TO GROW OUR ECOSYSTEM HERE IN SAN ANTONIO. 
          SO -- BUT THANK YOU FOR THE PRESENTATION. IS THERE ANY DISCUSSION AMONG MY COMMITTEE MEMBERS? IF NOT -- IF THERE'S NO MORE DISCUSSION, WE HAVE A MOTION AND A SECOND. ALL THOSE IN FAVOR SAY 
          AYE. (AYES.) >> VIAGRAN: ALL OPPOSED, SAY NO. MOTION CARRIES. ALL RIGHT. 
          WE'LL MOVE ON TO THE NEXT ITEM. ITEM NUMBER 8, MADAM CLERK, PLEASE READ THE CAPTION FOR ITEM NUMBER 8. 
          >> CLERK: ITEM NUMBER 8 IS APPROVAL TO PROCEED WITH SCHEDULING MULTIPLE CONTRACTS FOR CITY COUNCIL CONSIDERATION TO PROVIDE CITY DEPARTMENTS WITH ON-CALL MARKETING AND COMMUNICATIONS SERVICES FOR AN ESTIMATED TOTAL VALUE OF $23 MILLION FOR THREE YEARS WITH TWO ONE-YEAR 
          OPTIONS TO RENEW. >> VIAGRAN: ALL RIGHT. WE HAVE A STAFF 
          PRESENTATION. THE FLOOR IS YOURS. >> THANK YOU. 
          I'M ALANNA READ, DIRECTOR OF COMMUNICATIONS AND ENGAGEMENT FIX AND TODAY I'M GOING TO BE PRESENTING THIS ITEM. THE GOAL OF THE SOLICITATION WAS TO ESTABLISH A CENTRALIZED POOL OF QUALIFIED VENDORS TO PROVIDE SPECIALIZED COMMUNICATION SERVICES WHEN NEEDED. 
          THESE CONTRACTS IMPROVE CONSISTENCY, EFFICIENCY AND RESOURCE MANAGEMENT BY PROVIDING DEPARTMENTS WITH SCALABLE SUPPORT IN ADVERTISING, MARKETING, GRAPHIC DESIGN, PUBLIC RELATIONS, COMMUNITY ENGAGEMENT AND VIDEO PRODUCTION. SOME DETAILS ON THE SOLICITATION, WE CONDUCTED A COMPETITIVE REQUEST FOR PROPOSALS TO ESTABLISH MULTIPLE ON-CALL CONTRACTS. THE PROPOSED TERM IS THREE YEARS WITH TWO ONE-YEAR RENEWAL OPTIONS. AND THE TOTAL CONTRACT AUTHORITY IS 23 MILLION ACROSS ALL CATEGORIES AND DEPARTMENTS, REPRESENTING ABOUT 4.6 MILLION ANNUALLY. AND THIS ESTIMATED VALUE IS BASED ON CURRENT SPENDING LEVELS ACROSS THE ORGANIZATION. 
          FUNDING WILL BE DEPARTMENT SPECIFIC AND MAY INCLUDE GRANT FUNDING WHEN APPROPRIATE. BEFORE REVIEWING THE RECOMMENDED AWARDS, I'D LIKE TO BRIEFLY HIGHLIGHT THE SOLICITATION PROCESS USED TO EVALUATE PROPOSALS AND SELECT THE QUALIFIED VENDORS. THE SOLICITATION GENERATED VERY STRONG MARKET INTERESTS RESULTING IN 65 PROPOSALS ACROSS -- 
          [00:40:01]
NONRESPONSIVE OR WERE DISQUALIFIED. 14 FIRMS ARE RECOMMENDED FOR AWARD ACROSS THE VARIOUS SERVICE CATEGORIES, AND THIS INCLUDES FIVE WHO WERE AWARDED IN MULTIPLE CATEGORIES, GIVING YOU THAT 19 TOTAL. THE RECOMMENDED VENDOR POOL REFLECTS A DIVERSE MIX OF QUALIFIED FIRMS, INCLUDING BOTH SMALL, MEDIUM AND LARGE BUSINESSES RANGING FROM 1 TO 36 EMPLOYEES. WE'LL START WITH ADVERTISING AND MARKETING, WHICH WAS CATEGORY A. 
          ADVERTISING AND MARKETING HAD 15 PROPOSALS THAT WERE SUBMITTED. 
          THE EVALUATION COMMITTEE MEMBERS REVIEWED THE QUALIFICATIONS, EXPERIENCE, PROJECT APPROACH AND PRICING. AND SEVEN FIRMS ARE RECOMMENDED FOR AWARD. WE'LL MOVE ON TO THE NEXT CATEGORY, WHICH WAS CATEGORY B FOR GRAPHIC DESIGN. GRAPHIC DESIGN PROPOSALS WERE EVALUATED BASED ON CREATIVE CAPABILITIES, MUNICIPAL EXPERIENCE AND THE CAPACITY TO SUPPORT OUR CITY PROJECTS. TWO FIRMS ARE RECOMMENDED FOR AWARD. THE NEXT CATEGORY, C, IS PUBLIC RELATIONS. 
          PUBLIC RELATIONS FIRMS WERE EVALUATED ON STRATEGIC COMMUNICATION EXPERIENCE, MEDIA RELATIONS EXPERIENCE AND CAMPAIGN MANAGEMENT CAPABILITIES. THREE FIRMS ARE RECOMMENDED FOR AWARD. 
          CAT CATEGORY D IS ENENGAGEMENT. THIS IS CRITICAL TO MAKE SURE CITIZENS ARE ABLE TO PARTICIPATE. FIRMS WERE EVALUATED ON OUTREACH STRATEGIES, PUBLIC PARTICIPATION METHODS AND EXPERIENCE SERVING DIVERSE COMMUNITIES, AND THREE FIRMS ARE RECOMMENDED FOR AWARD. CATEGORY E, VIDEO PRODUCTION, IT GENERATED THE LARGEST RESPONSE WITH 16 PROPOSALS SUBMITTED. AND DUE TO THE COMPETITIVE FIELD, SEVEN FIRMS WERE SHORTLISTED FOR INTERVIEWS. 
          THE INTERVIEWS PROVIDED THE EVALUATORS AN OPPORTUNITY TO ASSESS THEIR TECHNICAL EXPERTISE, PRODUCTION CAPABILITY AND PROJECT MANAGEMENT APPROACHES. AND FOLLOWING THOSE INTERVIEWS, FINAL SCORES WERE CALCULATED AND FOUR FIRMS ARE RECOMMENDED FOR AWARD IN THIS CATEGORY. 
          THE PROCUREMENT PROCESS INCLUDED EXTENSIVE OUTREACH WITH NOTIFICATION SENT TO 3,697 VENDORS. 27 VENDORS ATTENDED THE PRESUBMITTAL CONFERENCE AND DUE DILIGENCE REVIEWS CONDUCTED BY BOTH FINANCE AND THE CITY AUDITOR IDENTIFIED NO MATERIAL FINDINGS. 
          ALL RECOMMENDED FIRMS SUCCESSFULLY MET THE CITY'S MINIMUM REQUIREMENTS. AGAIN, THIS SOLICITATION PROVIDES DEPARTMENTS WITH ACCESS TO QUALIFIED COMMUNICATIONS PROFESSIONALS AND IS GOING TO ENHANCE OUR ABILITY TO DELIVER HIGH-QUALITY COMMUNICATIONS, ENGAGEMENT AND MARKETING SERVICES CITYWIDE. 
          THANK YOU, AND I'M AVAILABLE FOR ANY QUESTIONS THAT YOU HAVE. 
          I'LL PUT IT BACK TO THIS SLIDE. >> VIAGRAN: ALL RIGHT. 
          CAN WE GET A MOTION AND A SECOND TO BEGIN DISCUSSION? ALL RIGHT. WE'VE GOT A MOTION AND A SECOND. 
          THANKS, ALANNA. SO YOU WILL HAVE -- I'M VERY EXCITED ABOUT THIS. 
          IT IS IMPORTANT THAT WE GET OUR MESSAGE OUT THERE IN A NUMBER OF WAYS. 
          BUT YOU ARE GOING TO HAVE -- YOU ARE GOING TO PUT FORWARD THE REQUIREMENTS OF WHAT'S REQUIRED, SPECIFICALLY OUR LOGO, THAT IF THEY USE THE CITY COLORS, THAT IT'S THE CORRECT COLORS, AND ARE Y'ALL APPROVING ANY COLORS THAT DEPARTMENTS ARE USING THAT DO NOT ALIGN WITH 
          THE -- >> REED:  THAT'S THE BEAUTY OF THIS CONTRACT, COMMUNICATIONS AND ENGAGEMENT WILL HELP WITH THE INTAKE AND ALSO REVIEWING THE PRODUCTS AND WORKING WITH THE DEPARTMENTS TO MAKE SURE THAT WHATEVER IS PRODUCED IS IN LINE WITH OUR BRANDING AND OUR BEST 
          PRACTICES. >> VIAGRAN: YEAH. BECAUSE, YOU KNOW, 42 DEPARTMENTS, AND I'VE SEEN SOME STUFF COME OUT OF DEPARTMENTS THAT I KNOW THEY USE THEIR BUDGET TO HIRE SOMEONE TO HELP, AND I'VE SEEN STUFF COME OUT WHERE THEY ASSIGNED IT TO SOMEBODY THAT STRUGGLED. 
          SO I REALLY WANT TO MAKE SURE THAT WE HAVE -- THAT THIS HELPS THEM KIND OF TAKE THAT OFF THEIR PLATE WITH THAT. AND DO WE HAVE -- IS -- SO 19 VENDORS. IS THERE A GUARANTEE OF WHAT SORT OF BUSINESS MINIMUM THEY'RE GETTING, OR IT JUST DEPENDS ON THEIR REPUTATION AND 
          THEIR WORK WITH THE DEPARTMENTS? >> REED:  SO WE'RE GOING TO HAVE AN INTAKE PROCESS USING OUR SMART SHEETS, AND IT WILL BE ON A 
          [00:45:03]
ROTATING BASIS, WHICHEVER VENDOR COMES UP JUST TO HELP PROMOTE THAT EQUITY WITH EACH OF THE VENDORS AND MAKE SURE THEY'RE GETTING THE BEST PRODUCTS. BUT THERE IS NO GUARANTEE. 
          >> VIAGRAN: OKAY. THERE'S NO GUARANTEE. BECAUSE THE OTHER THING I WOULD LIKE IS, AS A COUNCILMEMBER WHEN SOMETHING'S DONE REALLY WELL WITH THE -- WITH THE OUTREACH, IF THERE IS -- IF WE COULD STREAMLINE THE WAY ABOUT -- OR YOU KNOW ME, U CALL YOU AND I SAY, LOOK WHAT THIS DEPARTMENT DID, AND I'M GOING TO GIVE A SHOUTOUT TO SUSTAINABILITY -- RELIABILITY AND SUSTAINABILITY, BECAUSE THEY'VE DONE REALLY GOOD WORK LATELY WITH THEIR CALENDAR AND THEIR, YOU KNOW, IMPACT REPORT. 
          SO IS THERE GOING TO BE A WAY WE CAN TELL YOU THAT OR YOU CAN REMIND US TO KIND OF GO IN AND GIVE YOU THAT INFORMATION? SOME -- ANOTHER THING IS SOME PEOPLE DO REALLY GOOD WITH THE BILINGUAL ADVERTISEMENTS THAT THEY DO, WHEN WE DROP IT AT THE DOORS, WITH DOOR HANGERS AND SOME OF THEM NOT SO MUCH. I GET -- I HAVE EDUCATORS THAT CALL ME AND WERE LIKE, THEY DIDN'T PHRASE THIS RIGHT. SO I WANT TO BE ABLE TO COMMUNICATE THAT ON -- ALSO AS WE MOVE FORWARD. SO IF WE CAN JUST FIND A WAY THAT WE, AS THE COUNCIL OFFICE, CAN DO THAT. 
          THAT WAY WE'RE NOT TRYING TO, YOU KNOW, FIND OUT WHO THE VENDOR IS, IT'S JUST SOMETHING THAT YOU GUYS CAN TAKE CARE OF, I'D APPRECIATE THAT. 
          >> REED:  YES, MA'AM. VAIGZ OKAY. IS THERE ANY OTHER DISCUSSION FROM -- YES, COUNCILWOMAN MEZA GONZALEZ? 
          >> GONZALEZ: THANK YOU. I APPRECIATE THE PRESENTATION. 
          I THINK IT'S -- THIS IS A HUGE CONTRACT, SO MAKING SURE THAT OUR RESIDENTS HAVE THE CONFIDE CONFIDENCE THAT WE ARE COST-EFFECTIVE AND EQUITABLE ALONG EACH OF THOSE AREAS, I THINK IS IMPORTANT, ESPECIALLY WITH THE CHALLENGING BUDGET YEAR. CAN YOU HELP ME UNDERSTAND WHY S SOME OF THE CATEGORIES HAD SEVEN -- WHAT IS IT -- DIFFERENT PROPOSALS VERSUS THE OTHER ONES HAD, YOU KNOW, TWO TO 
          FOUR? >> REED:  YES. ABSOLUTELY. 
          SO THE DETERMINATION ON THE SELECTED NUMBER OF VENDORS WAS BASED ON PREVIOUS SPENDING PATTERNS AND PERCENTAGE OF USE. 
          SO, FOR EXAMPLE, IN ADVERTISING AND MARKETING, THAT WAS -- 
          >> OF USE. SO AN EXAMPLE IN ADVERTISING AND MARKETING, THAT'S 79% OF THE CURRENT SPENDING GOES TOWARDS ADVERTISING AND MARKETING, SO THEREFORE, WE HAVE SEVEN VENDORS, LIKE THE MOST, IN THOSE CATEGORIES. AGAIN, JUST BASED ON OUR PATTERNS. 
          >> GONZALEZ: AND I GUESS WHAT'S THE DIFFERENCE BETWEEN ADVERTISING AND MARKETING AND GRAPHICS, WHICH HAPPEN IN ADVERTISING AND MARKETING, AND PR THAT -- I GUESS I'M JUST TRYING TO UNDERSTAND, IT SEEMS LIKE A MORE GENERAL ADVERTISING AND MARKETING, BUT THEN THERE'S SPECIFIC THAT I IMAGINE EVEN THE MOST -- THE SMALLEST FIRM WOULD 
          HAVE A GRAPHIC DESIGNER OR -- I DON'T KNOW. >> REED:  SO ADVERTISING AND MARKETING WOULD BE MORE LIKE A LARGER CAMPAIGN FOR SOMETHING, FOR A PROJECT OR AN INITIATIVE. AND A DESIGN PROJECT 
          MIGHT BE JUST YOU NEED A FLYER OR A POSTCARD. >> GONZALEZ: 23 MILLION, IS THIS ON TOP OF -- DOESN'T EVERY DEPARTMENT HAVE A C & E BUDGET OR 
          C & E PERSON? >> REED:  WE HAVE A LIAISON WITH COMMUNICATIONS AND ENGAGEMENT, BUT NOT EVERY DEPARTMENT HAS THEIR OWN 
          GRAPHIC DESIGNER OR COMMUNICATIONS STAFF. >> 
          >> COUNCILWOMAN, AND ALANNA'S ALREADY SAID THIS, BUT I JUST WANT TO MAKE SURE IT'S CLEAR, SO WHAT HER TEAM DID WAS GO LOOK AT EVERYTHING THAT THE CITY ORGANIZATION IS SPENDING ON THESE FIVE SERVICES. 
          AND BASED -- THE BUDGET IS BASED ON THAT, BUT IT'S ONLY CONTRACT CAPACITY. NONE OF THIS MONEY IS BEING AWARDED. 
          DEPARTMENTS HAVE TO HAVE THAT FUNDING THEMSELVES, THEY COULD GET IT FROM A GRANT, THEY COULD GET IT DURING THE BUDGET PROCESS, WHAT HAVE YOU. 
          AND WE ALSO LOOKED AT WHAT DEPARTMENTS ARE NEEDING, AND ADVERTISING AND MARKETING, AS ALANNA SAID, IS THE BIGGEST ONE, THOSE ARE SORT OF THOSE FULL-SERVICE CAMPAIGNS. BUT DEPARTMENTS ALSO FROM TIME TO TIME NEED GRAPHIC DESIGN WORK, DONE, YES, AN AD VER DIEZING MARKETING FIRM CAN DO THAT, BUT WE MIGHT RELY ON A SMALLER GRAPHIC DESIGNER TO KNOCK OUT A SMALL PROJECT AND A FULL SERVICE FIRM TO DO A CITYWIDE CAMPAIGN FOR DOING. ALL IT'S DOING IS SAVING THE DEPARTMENTSES THE WORK OF SOLICITING THIS EVERY TIME THEY NEED SUPPORT AND ALANNA'S TEAM 
          WILL MANAGE IT WITH ALL OF THE GUIDELINES -- >> GONZALEZ: IS THIS THE FIRST TIERM WE'VE DONE ON CALL FOR C & E? THE AIRPORT HAS -- 
          [00:50:05]
          >> REED:  PUBLIC WORKS ALSO. THERE MIGHT BE OPPORTUNITIES, FOR EXAMPLE, WITH GRAPHIC DESIGN, COMMUNICATIONS AND ENGAGEMENT DOES HAVE IN-HOUSE GRAPHIC DESIGNERS, SO IF IT'S A SMALL POSTCARD OR SOMETHING -- A FLYER THAT WE CAN EASILY DO AND WE HAVE THE CAPACITY, WE CAN CERTAINLY LOOK AT DOING IT IN-HOUSE, AND THERE 
          MIGHT BE SAVINGS THERE AS WELL. >> GONZALEZ: AND WHAT M METRICS ARE YOU USING TO DETERMINE THE EFFECTIVENESS OF ANY OF 
          THIS? I MEAN -- >> REED:  WELL, HOPEFULLY WE'LL SEE SOME SAVINGS AS FAR AS STAFF TIME AND THE PROCUREMENT PROCESS. 
          I THINK THAT'S THE LOWEST HANGING FRUIT, BUT ALSO FOR THOSE PROJECTS THAT WE CAN DO IN-HOUSE, I THINK THERE MIGHT BE SAVINGS THERE AS WELL. 
          >> GONZALEZ: ARE THERE CERTAIN PROJECTS, THOUGH, THAT -- I'M WONDERING LIKE THE -- WHETHER IT'S A POSTCARD OR A TEXT MESSAGE, IS TEXT MESSAGING IN HERE AT ALL? NO, RIGHT? 
          >> REED:  IT MIGHT BE PART OF THE ADVERTISING IF IT'S PART OF A LARGER 
          CAMPAIGN. >> GONZALEZ: AND I WAS CURIOUS, I DON'T KNOW IF TROY CAN ANSWER THIS, BUT IS THERE A WAY THAT WE CAN INCLUDE SBEDA-CERTIFIED SUBCONTRACTING FIRM? IS THERE A REQUIREMENT IN THERE THAT WE COULD PUT IN? ELIZ 
          >> ELLIOTT: NO, THE SOLICITATION HAS BEEN COMPLETED BY NOW. 
          THERE WAS THE SBEDA REQUIREMENT AT OUR PRIME LEVEL BUT I DON'T BELIEVE THERE WAS ANY SBEDA SUBCONTRACTING. YEAH, AND THAT'S A GOOD POINT. WE DO HAVE SOME LIMITATIONS BECAUSE OF GRANTS AND OTHERS, SO WE CANNOT DO THAT. WE CAN CERTAINLY -- WHEN YOU'RE WORKING WITH THE FIRMS, IF THERE IS A SUBCONTRACT NEEDED TO FULFILL SOME OF THIS, WE CAN WORK WITH THEM FROM THAT ANGLE. 
          >> GONZALEZ: OKAY. THANK YOU. I APPRECIATE THE 
          QUESTION. >> VIAGRAN: COUNCILWOMAN WHITE? 
          >> WHYTE: YEAH, I THINK THE COUNCILWOMAN HIT A LOT OF MY QUESTIONS. 
          I THOUGHT THAT WAS GREAT, BUT JUST EXPLAIN TO ME, AGAIN, SO THIS IS WORK 
          THAT WE CAN'T DO IN-HOUSE? >> REED:  THIS IS WORK THAT IS TRADITIONALLY OUTSOURCED TO THESE VENDORS. 
          >> WHYTE: WHY? >> REED:  I WOULD SAY THAT HALF OF OUR DEPARTMENTS HAVE THEIR OWN COMMUNICATION STAFF AND THE OTHER HALF OF THE DEPARTMENTS RELY ON COMMUNICATIONS AND ENGAGEMENT STAFF. 
          AND WE HAVE LIMITED RESOURCES. >> WHYTE: OKAY. 
          HAVE WE LOOKED AT WHETHER AI -- I MEAN, THERE'S -- CITIES ACROSS THE COUNTRY ARE -- IN THEIR MARKETING EFFORTS, WE LOOKED AT IT, ARE USING AI TO HELP WITH SOME OF THIS STUFF AND REALLY REDUCE COSTS. ARE WE LOOKING AT ANY OF 
          THAT. >> VIAGRAN: HOLD ON. I'M GOING TO STOP BEFORE YOU ANSWER, ALANNA, OR ANY OF THE CITY MANAGERS. 
          WE CURRENTLY DO NOT HAVE AN AI POLICY WITHIN THE CITY OF SAN ANTONIO, SO SHE CAN'T SPEAK TO THAT. THAT'S A DECISION WE NEED TO DIRECT ERIK ON REGARDING HOW THE CITY USES AI, AND WE'VE TALKED ABOUT IT, BUT WE DON'T 
          HAVE ANYTHING FORMALIZED. >> WHYTE: YOU CAN'T SPEAK TO WHETHER OR NOT OUR C & E DEPARTMENT IS USING AI ON ANY MARKETING 
          EFFORTS? >> VIAGRAN: YOU CAN -- WE DO NOT -- WE CURRENTLY DO NOT HAVE AN AI POLICY, SO THAT IS THE ONE THING IS I WOULD -- 
          >> WHYTE: [INDISCERNIBLE] THAT DOESN'T MEAN THEY'RE NOT DOING IT. 
          >> VIAGRAN: AGAIN, THAT IS A -- THAT'S A CITY MANAGER RECOURSE, THAT IS NOT A CITY -- THAT'S NOT AN AUDIT COMMITTEE RECOURSE, SO LET'S JUST -- YOU CAN PUT, CAN WE USE AI, AND THEN SHE CAN ANSWER. 
          WE COULD USE AI, BUT WE NEED TO TALK -- >> WHYTE: [INDISCERNIBLE] 
          USING AI. CAN I ASK THAT. >> VIAGRAN: YEAH, YOU CAN 
          ASK THAT? >> WHYTE: HAVE WE LOOKED AT USING AI TO REDUCE 
          COSTS? >> REED:  WE ARE CERTAINLY OPEN TO THAT AND WE'VE BEEN TALKING WITH ITSD ON WHAT THE CITY'S POLICY IS AND HOW WE CAN LEVERAGE THAT TO HELP WITH THESE PROJECTS. 
          I ALSO WANT TO NOTE THAT WHEN I'M TALKING ABOUT LIMITED RESOURCES IN THE CITY, THE CITY ONLY HAS BETWEEN EIGHT AND 10 GRAPHIC DESIGNERS ACROSS THE WHOLE CITY OF SAN ANTONIO, SO, YOU KNOW, WHEN WE'RE LOOKING AT SOME OF THESE PROJECTS WITH ALL 40 PLUS DEPARTMENTS, THAT'S -- 
          THAT'S STRETCHING PEOPLE VERY THIN. >> WHYTE: THAT RAISES ANOTHER QUESTION. I MEAN, A, I THINK, POTENTIALLY AI CAN REDUCE OUR COSTS HERE, BUT, B, HOW MANY GRAPHIC DESIGNERS, YOU SAID? 
          >> REED:  BETWEEN EIGHT AND 10. >> WHYTE: EIGHT AND 10. 
          SO MAYBE IT WOULD BE MORE COST EFFICIENT TO HIRE ANOTHER COUPLE OF PEOPLE 
          IN LIEU OF SPENDING SOME OF THIS MONEY ON THIS. >> REED:  AGAIN, THIS 
          [00:55:03]
CONTRACT IS BASED HON WHAT WE'RE CURRENTLY SPENDING AND I THINK THE OPPORTUNITY IS FOR US WHEN WE'RE RECEIVING THESE PROJECTS, NOW THEY'RE GOING THROUGH COMMUNICATIONS AND ENGAGEMENT, SO WE CAN DECIDE INTERNALLY IS THIS SOMETHING WE HAVE THE CAPACITY TO DO IN-HOUSE OR DO WE NEED TO SPEND MONEY OUTSIDE TO HIRE -- OR USE ONE OF THESE 
          VENDORS. >> WHYTE: YEAH. AND MY POINT IS NOT TO -- I'M NOT TRYING TO NITPICK OR CRITICIZE, BUT I THINK THIS IS A LOT OF MONEY AS THE COUNCILWOMAN SAID, AND IS THIS THE MOST EFFICIENT WAY TO GET THESE SERVICES THAT WE'RE LOOKING FOR. THE FUNDING SOURCE IN THE CONTRACT SAYS VARIOUS, INCLUDING POSSIBLE GRANT FUNDS. 
          BEFORE WE GET TO FULL COUNCIL, ARE WE GOING TO BE ABLE TO KNOW OR GET A CLEAR BREAKDOWN OF HOW MUCH OF THE 23 MILLION IS EXPECTED TO COME FROM 
          GENERAL FUND VERSUS GRANTS? >> I THINK WE CAN SHOW YOU HISTORICALLY WHERE WE HAVE SPENT THE MONEY. I THINK GOING FORWARD -- I DON'T KNOW IF ALANNA HAS A GOOD IDEA OF WHAT WE'RE DOING GOING FORWARD, BUT IT'S A CAPACITY CONTRACT. SO AS DEPARTMENTS COME FORWARD WITH A NEED, IT WILL FUNNEL THROUGH HER DEPARTMENT, AND SHE'LL DETERMINE THE FUNDING SOURCES FOR IT. SO I DON'T KNOW IF WE HAVE A GOOD LOOK GOING -- PERSPECTIVELY OR INTO THE FUTURE, BUT WE CAN CERTAINLY GO BACK HISTORICALLY AND TELL YOU WHERE WE SPENT MONEY. 
          THE ONE THING -- AND YOU MENTIONED VARIOUS GRANTS, I WANT TO KIND OF HIGHLIGHT WHY THAT IS WORDED LIKE THAT, IS THIS IS A CONTRACT THAT HAD LOCAL PREFERENCE, SBEDA AND OTHER PRERVES PROGRAMS IN IT. 
          SOME GRANT PROGRAMS DON'T ALLOW THOSE CONSIDERATIONS. 
          SO WE MAY NOT BE ABLE TO USE THIS CONTRACT BECAUSE OF THE WAY IT WAS PROCURED WITH LOCAL. AND WE MAY HAVE TO DO SEPARATE PROCUREMENTS FOR THOSE SPECIFIC THINGS, LIKE THE AIRPORT FAA. I JUST WANTED TO POINT 
          THAT OUT. >> WHYTE: YEAH. >> ELLIOTT: BUT WE CAN CERTAINLY GO BACK HISTORICALLY AND SHOW YOU WHERE THE MONEY HAS COME 
          FROM. WE DID THAT ANALYSIS. >> WHYTE: ARE WE 
          BUDGETING 23 MILLION? >> COYLE: NO. THAT'S WHEY WANTED TO GET UP AND ANSWER AGAIN. IT'S CONTRACT CAPACITY. SO WE ARE AUTHORIZING TO SPEND UP TO THAT AMOUNT, BUT ALL THE SPENDING WOULD BE SUBJECT TO THE DEPARTMENT'S BUDGETS. SO WE MAY NOT SPEND ANY OF IT, FRANKLY, IF ALL THE STAFF CAN DO EVERYTHING WE NEED IN-HOUSE, WE DON'T HAVE IT. BUT HISTORICALLY, WE CAN'T DO ALL OF IT IN-HOUSE, AND DEPARTMENTS HAVE HIRED PROFESSIONAL FIRMS TO PROVIDE SUPPORT 
          AND USE THEIR BUDGETS. >> WHYTE: HOW DO WE BUDGET FOR THAT IN THE 
          GENERAL FUND. >> COYLE: SAY IT AGAIN. >> WHYTE: HOW DO WE 
          BUDGET FOR THAT IN THE GENERAL FUND. >> COYLE: IT'S PART OF INDIVIDUAL DEPARTMENT'S BUDGETS. THE GLANT EXAMPLE IS A PERFECT ONE. WE MAY GET A GRANT FROM A STATE OR FEDERAL AGENCY FROM A PUBLIC EDUCATION CAMPAIGN AROUND X ISSUE. THE DEPARTMENT IT'S H FORCALLY HAS THEN HAS TO GO OUT, DO AN INDIVIDUAL SOLICITATION, HIRE A FIRM, ROUTE THAT GRANT MONEY, THIS IS BRINGING EVERYBODY IN AND IF WE GET THAT GRANT AT SOME POINT, WE'VE GOT FOLKS READY TO GO WHO CAN HELP 
          US EXECUTE. >> WHYTE: OKAY. >> COYLE: AND ALSO ON THE AI PIECE, AI CAN'T DO MEDIA BUY-IN FOR US, YOU KNOW, BUY A BUNCH OF ADS FOR A CAMPAIGN, THEY CAN'T DO -- IT CAN'T DO COMMUNITY ENGAGEMENT, IT CAN'T DO VIDEO PRODUCTION. THESE ARE SERVICES THAT WE -- WHEN WE NEED TO SUPPLEMENT WHAT WE CAN DO IN-HOUSE, THESE FIRMS WOULD BE ABLE TO DO THAT. BUT, AGAIN, ONLY SUBJECT TO THE BUDGETS THAT DEPARTMENTS HAVE AUTHORIZED THROUGH THE 
          BUDGET PROCESS. >> WHYTE: OKAY. THANK Y'ALL. 
          >> VIAGRAN: THANK YOU. REPRESENTATIVE PACHECO, ANY QUESTIONS? 
          >> PACHECO:  JUST FEEDBACK, AS SOMEONE WHO IS BIG ON PROCESS AND PROCEDURE, THIS DEFINITELY MAKES SENSE, RIGHT, BECAUSE IT ALLOWS THE COMMUNICATIONS AND ENGAGEMENT TEAM TO PROVIDE THAT OVERSIGHT. 
          JUST MY QUESTION, I GUESS GOING MORE TO THE BUDGET AND THESE QUESTIONS ABOUT FINANCES, SO IF A SPECIFIC DEPARTMENT HAS FUNDS, THEY WOULD BE SPENDING IT, BUT YOU ALL WOULD BE PROVIDING ADDITIONAL OVERSIGHT ON 
          THAT SPEND, OR HOW DOES THAT WORK OUT? >> REED:  THAT'S CORRECT. SO IT WILL BE COMING THROUGH US, AND WE WILL KIND OF WORK WITH THE DEPARTMENTS AND THE VENDORS TO MAKE SURE THAT THEY'RE GETTING EVERYTHING THAT THEY NEED AT THE MOST 
          REASONABLE -- >> PACHECO:  DO YOU REVIEW IT AND THEN THE 
          DEPARTMENT HAS TO APPROVE IT? >> REED:  CORRECT. 
          AND WE'RE ALSO GOING TO HAD A FEEDBACK PROCESS IN THERE TO MAKE SURE EVERYBODY'S HAPPY WITH THE RESULTS SO WE CAN GET FEEDBACK FROM THE VENDORS AND ALSO WHEN WE'RE WORKING WITH THE DEPARTMENTS. 
          >> PACHECO:  COOL. THANK YOU. >> VIAGRAN: ANY OTHER DISCUSSION? IF NOT, WE HAVE A MOTION AND A SECOND.  ALL IN 
          FAVOR SAY AYE. (AYES.) >> VIAGRAN: ALL OPPOSED, 
          [Final Internal Audit Report
 ]
SAY NO. MOTION CARRIES. ALL RIGHT. 
          WE'RE MOVING ALONG TO OUR NEXT ITEM, WHICH IS, OH, THE FUN ITEMS. 
          [01:00:08]
AH. ITEM NUMBER -- WE HAVE TWO ITEMS, ITEM NUMBER 9 IS THE FINAL INTERNAL AUDITS. IT IS THE AUDIT OF THE CONVENTION CENTER FACILITIES JANITORIAL. BUDDY, CAN WE GET A STAFF PRESENTATION? ALL RIGHT. THE FLOOR IS YOURS. 
          >> VARGAS: THANK YOU. YOURS. >> THANK YOU. 
          MY NAME IS MICHAEL GUTIERREZ, I WAS THE AUDIT MA MANAGER OVER THIS PROJECT AND I'LL BE PRESENTING. THE OBJECTIVE OF THE AUDIT WAS TO DETERMINE IF CSF IS EFFECTIVELY MANAGING AND MONITORING THE CONTRACT FOR THE ALAMODOME AND THE CONVENTION CENTER. 
          OVERALL, WE CONCLUDED CSF IS NOT EFFECTIVELY MANAGING AND MONITORING THE CONTRACTS FOR THESE FACILITIES. WE CITE THE DEPARTMENT HAS INSUFFICIENT POLICIES, PROCEDURES AND CONTROLS TO PROPERLY MONITOR THE CONTRACT FOR COMPLIANCE. OUR FIRST RECOMMENDATION INVOLVES PREEMPLOYMENT SCREENING. FOR SCREENING, THIS INVOLVES BACKGROUND CHECKS, DRUG SCREENINGS AND FEDERAL EMPLOYMENT ELIGIBILITY VERIFICATION THROUGH THE FEDERAL I-9 FORM. 
          WE CONCLUDED THAT THE PRIME CONTRACTOR AND THE SUBCONTRACTORS ARE NOT PERFORMING THESE SCREENINGS ON THEIR CONTRACTUAL EMPLOYEES PRIOR TO PERFORMING SERVICES AT THESE FACILITIES AS IT'S REQUIRED BY THE CONTRACT. ALSO THROUGH TESTING, WE BECAME AWARE OF THREE ADDITIONAL SUBCONTRACTORS PERFORMING WORK AT THE ALAMODOME THAT THE CSF TEAM WAS NOT AWARE OF, AND DID NOT MONITOR FOR PREEMPLOYMENT SCREENING. OUR RECOMMENDATION IS FOR THE DIRECTOR TO REVIEW AND REVISE THE EXISTING CONTROLS IN PLACE TO ENSURE THE PRIME CONTRACTOR AND THE SUBCONTRACTORS ARE PROPERLY PERFORMING THESE SCREENINGS TO BE IN COMPLIANCE WITH THE -- WITH THE CONTRACTS. 
          OUR NEXT RECOMMENDATION IS REFERRING TO STAFFING LEVELS AT BOTH FACILITIES. WE CONCLUDED CSF IS NOT APPROPRIATELY REVIEWING THEIR RECORDS OF ATTENDANCE FOR THE CONTRACTUAL EMPLOYEES THAT ARE WORKING AT BOTH FACILITIES. FOR RECORDS OF ATTENDANCE, WE REVIEWED SIGN-IN SHEETS. AT -- ARE NOT MAINTAINED, SO WE WERE NOT ABLE TO DETERMINE IF STAFFING LEVELS WERE MET. AT THE CONVENTION CENTER, THEY ARE MAINTAINED. 
          WE OBSERVED A FEW DAYS WHERE THE STAFFING LEVELS WERE NOT -- WERE NOT MET. AT THOSE TIMES, THE PRIME CONTRACTOR ALSO DID NOT NOTIFY THE CONVENTION CENTER TEAM WITHIN 48 HOURS THAT THEY WOULD NOT BE ABLE TO MEET THE REQUIRED LEVELS. THAT'S A CONTRACT REQUIREMENT ONLY FOR THE CONVENTION CENTER, NOT FOR THE ALAMODOME. 
          WE WERE NOT ABLE TO DETERMINE IF THE CONVENTION CENTER TEAM WAS ADDRESSING THESE DISCREPANCIES AS THEY WERE NOT ABLE TO PROVIDE ANY SUPPORT OF ANY COMMUNICATIONS TAKING PLACE BETWEEN PARTIES. 
          OUR RECOMMENDATIONS ARE FOR THE DIRECTOR TO DEVELOP PROCEDURES TO MONITOR THE EMPLOYEES PRESENT AT BOTH FACILITIES TO ENSURE THAT THE REQUIRED LEVELS ARE MET. ALSO TO CREATE POLICIES AND PROCEDURES TO PROPERLY DOCUMENT COMMUNICATION TAKING PLACE BETWEEN MANAGERS AND SUPERVISORS WHENEVER STAFFING LEVELS ARE NOT MET, WHENEVER A 48-HOUR NOTIFICATION IS NOT PROVIDED, AND ALSO WHENEVER THERE'S ANY CHANGES TO ANY LEVELS MADE. 
          AND THEN LASTLY, TO ENSURE CONSISTENCY OF THE CONTRACT PROVISIONS FOR BOTH FACILITIES WHERE APPROPRIATE. OUR NEXT RECOMMENDATION IS OVER CUSTODIAL AND CONVERSION WORK. WE CONCLUDED CSF IS NOT APPROPRIATELY REVIEWING THE WORK THAT IS BEING PERFORMED AT BOTH FACILITIES TO ENSURE THEY'RE BEING PERFORMED TO AN ACCEPTABLE STANDARD. AT THE ALAMODOME, THE WORK THAT IS BEING PERFORMED IS -- IT'S INSPECTED AND MONITORED IN REALTIME; HOWEVER, THE RESULTS ARE NOT RECORDED. THEY DO USE A FORM AT THE CONVENTION CENTER, THERE'S AN INSPECTION FORM THAT IS USED; HOWEVER, THE FORMS ARE NOT CONSISTENTLY COMPLETED OR MAINTAINED. 
          SO OUR RECOMMENDATION IS FOR THE DIRECTOR OF CSF TO DEVELOP WRITTEN POLICIES AND PROCEDURES AND CONTROLS THAT INCLUDE THE CURRENT PRACTICES AT BOTH FACILITIES TO ENSURE THE SERVICES ARE BEING PERFORMED AS REQUIRED. 
          OUR NEXT RECOMMENDATION IS OVER THE ACCURACY OF INVOICES. 
          WE CONCLUDED CSF IS APPROPRIATELY MONITORING THE INVOICES FOR ACCURACY 
          [01:05:03]
AT THE CONVENTION CENTER; HOWEVER, THEY ARE NOT APPROPRIATELY REQUESTING, MAINTAINING AND VALIDATING THE RECORDS OF ATTENDANCE AT THE ALAMODOME. OUR RECOMMENDATION IS FOR THE DIRECTOR TO ESTABLISH MONITORING PROCEDURES AT THE ALAMODOME TO VALIDATE THE ACTUAL HOURS THAT ARE WORKED TO ENSURE THE INVOICES ARE COMPLETE AND ACCURATE PRIOR TO THEM BEING PAID. OUR NEXT RECOMMENDATION IS REGARDING ACCESS TO BOTH FACILITIES. WE DETERMINED PHYSICAL ACCESS TO THE ALAMODOME IS NOT APPROPRIATELY APPROVED BY THE CSF TEAM. 
          THE CURRENT POLICIES AND PROCEDURES ARE NOT IN WRITTEN FORM, BUT AT THE TIME OF TESTING, THE TEAM WAS ASKING CONTRACT EMPLOYEES TO FILL OUT APPLICATION FORMS IN ORDER FOR A BADGE TO BE ISSUED. 
          WHEN WE REVIEWED THESE FORMS, WE NOTICED SOME APPROVALS MISSING. 
          AT THE CONVENTION CENTER, THEY DO HAVE WRITTEN ACCESS PROCEDURES; HOWEVER, WE OBSERVED ADMINISTRATIVE IMPROVEMENTS THAT COULD BE -- THAT COULD HELP WITH THE SIGN-IN SHEETS SUCH AS MAKING SURE ALL SIGNATURES ARE OBTAINED AND ALL WORK DATES ARE RECORDED. 
          OUR RECOMMENDATION HERE IS TO CREATE WRITTEN POLICIES AND PROCEDURES FOR THE AUTHORIZATION OF ISSUING BADGE ACCESS TO THE ALAMODOME. 
          ALSO TO ENSURE CONTROLS FOR ENSURING THE PROPER AUTHORIZATION IS PROVIDED PRIOR TO THE BADGE BEING ISSUED. AND LASTLY, TO ESTABLISH CONSISTENT WRITTEN POLICIES AND PROCEDURES TO TO ENSURE PROPER ACCESS AND THE PROPER MAINTENANCE OF RECORDS. AND OUR FINAL RECOMMENDATION COMES WITH CONTRACT COMPLIANCE. WE CONCLUDED THE SUBCONTRACTORS ARE NOT MEETING THE INSURANCE REQUIREMENTS FOR BOTH CONTRACTS. AND WE RECOMMEND THE DIRECTOR ENSURE THE EXISTING PROCEDURES FOR PREPARING A CAP FOR THE PROPER MONITOR OF KEY PROVISIONS AT THE APPROPRIATE TIMES ARE EXECUTED. 
          THE CSF TEAM HAS AGREED WITH OUR RECOMMENDATIONS AND ALREADY DEVELOPED AN ACTION PLAN WITH AN ANTICIPATED COMPLETION DATE OF JUNE OF 2026. 
          THIS CONCLUDES THE PRESENTATION. THE CSF TEAM IS AVAILABLE TO ANSWER ANY QUESTIONS YOU MAY HAVE. THANK YOU. 
          >> VIAGRAN: ALL RIGHT. CAN I GET A MOTION AND A SECOND TO ACCEPT THE AUDIT PRESENTED BY THE AUDIT COMMITTEE. YES? I HAVE A MOTION. AND A SECOND? GREAT. 
          WE CAN BEGIN -- >> AFTER -- I WANT TO MOVE FORWARD WITH THE MOTION AND A SECOND, BECAUSE I DO WANT TO SAY A FEW WORDS AND THEN I'LL CALL YOU UP, PATRICIA, TO COME AND SPEENG. SPEAK. I DO WANT TO REMIND US THAT THIS IS -- AUDIT'S JOB IS TO COME AND TELL US WHAT WAS WRONG. 
          WE -- WE SEND THESE COMMITTEES HERE BECAUSE WE WANT TO MAKE SURE THAT WE ARE LOOKING AT THIS AND PRIORITIZING THIS, SO REMEMBER, IT'S -- IT'S PATRICIA, AND SHE'S GOING TO COME UP AND TELL US. AND IF YOU LOOK AT YOUR SLIDE PRESENTATION, ON SLIDE 15 BEGINS THE -- THE RECOMMENDATIONS AND THEN THE ACTION PLAN THAT THEY HAVE. IF Y'ALL HAVE ANY QUESTIONS, SO IF YOU'RE LOOKING TO REFER TO THAT OR PATRICIA MAY COME UP AND REFER TO THAT IN TERMS OF THE ACTION PLANS WITH THE QUESTIONS. 
          SO PATRICIA, IF I CAN HAVE YOU COME UP AND TALK A LITTLE ABOUT THE AUDIT BEFORE WE BEGIN DISCUSSION. THANK YOU. 
          >> YES, GOOD MORNING, MADAM CHAIR, AND AUDIT COMMITTEE MEMBER, PA TRIESHTIA [INDISCERNIBLE] DIRECTOR OF CONVENTION SO LIKE MICHAEL ALLUDED, WE HAVE ACCEPTED -- WE PROVIDED MANAGEMENT RESPONSE. WE HAVE REINFORCED THE MONITORING ON BOTH OF THESE CONTRACTS. I CAN ALSO REPORT THAT ALTHOUGH THE IMPLEMENTATION WAS JUNE OF 2026, WE HAVE IMPLEMENTED ALL OF THE ACTION PLANS THAT ARE DESCRIBED IN THE MANAGEMENT RESPONSE. 
          AND I CAN SAY WITH CONFIDENCE THAT THE PRIME CONTRACTOR, SUBCONTRACTORS ARE NOW DOING ALL OF THE PRE-EMPLOYMENT SCREENINGS THAT WERE REQUIRED. 
          WE'VE UPDATED FORMS. WE'VE ALSO UPDATED OR CONTRACTED ADMINISTRATION PLANS, IMPLEMENTED SEVERAL POLICIES THAT WILL HELP US ALSO OUR CONTRACT STAFF, WITH THE ASSISTANCE OF THE COMPLIANCE AND RESOLUTIONS, HAVE GONE THROUGH ADDITIONAL CONTRACT ADMINISTRATION TRAINING. 
          >> VIAGRAN: THANK YOU, PATRICIA. SO THE ONE THING -- WAS SURPRISED THAT THERE WERE SO MANY FINDINGS. BUT AGAIN, I AM AT THE 
          [01:10:05]
CONVENTION CENTER AND I AM AT THE ALAMODOME, WHENEVER I'M INVITED. 
          YOU KNOW I'M THERE. I HAVE BEEN TO THE MONSTER TRUCK ALSO. 
          I KNOW WITH EACH CLIENT THAT COMES IN THERE'S A DIFFERENT SET OF RULES. 
          YOU KNOW, I THINK I WAS THERE FOR THE MONSTER TRUCK RALLY AND THEY BLOCKED OFF AN AREA. AND I WAS TALKING TO THE STAFF THERE AND THEY WERE LIKE, YEAH, NOT EVEN WE THAT WORK THERE COULD GO IN THE BACK. 
          THEIR SECURITY WAS SO TIGHT BECAUSE THEY DIDN'T WANT PEOPLE NEAR THE TRUCKS. 
          THEY WERE LIKE, WE CAN'T EVEN GO BACK THERE TO USE THE BATHROOM BECAUSE THIS IS WHAT THEY CONTRACTED WITH YOU. YOU HAVE TO HAVE THIS SPECIAL ACCESS PASS. AND SO I THINK THAT'S ONE OF THE THINGS WE NEED TO UNDERSTAND WHEN WE CONSIDER, AS WE MOVE FORWARD, IS JUST THE AMOUNT OF ASKS. 
          I'M NOT EVEN GOING TO GET STARTED WITH THE PERFORMERS THAT, YOU KNOW, WANT THE SPECIAL THINGS AND PEOPLE CAN'T LOOK AT THEM IN THE FACE IF THEY WALK THROUGH THE HALL. I KNOW THAT IT IS DIFFICULT TO DO, ESPECIALLY IN THE DOME, AND WHAT YOU HAVE. BUT I THINK IT'S IMPORTANT THAT I'M GLAD THAT YOU'RE ADDRESSING THE ISSUES AND I THINK THIS IS SOMETHING THAT MAYBE WE NEED TO GET BACK TO IN TERMS OF THE IMPORTANCE. IF IT STARTS SLIDING HERE, DOES IT START SLIDING IN OTHER ASPECTS? AND I APPRECIATE Y'ALL MOVING FORWARD. 
          AGAIN, AS I TALKED ABOUT ECONOMIC ECOSYSTEMS WITHIN THE JANITORIAL SERVICES, IS MAKING SURE THAT IF WE HAVE A SUBCONTRACTOR HERE THAT THEY'RE USING SUPPLY SA, THAT THEY'RE USING THE RESOURCES TO GET THE CERTIFICATIONS AND THE BACKGROUND CHECKS THAT THEY NEED, BECAUSE WE'RE PROVIDING THAT OPPORTUNITY HERE. I THINK WORKING WITHIN OUR ECOSYSTEM OF WHAT WE HAVE AVAILABLE WITH SMALL BUSINESSES TO MAKE SURE THAT THE PRIME CONTRACTOR, WHEN HE'S SAYING WE JUST -- WE DON'T HAVE ENOUGH SUBCONTRACTORS OR THAT WE ARE LIKE, NO. WE HAVE THEM HERE. YOU JUST NEED TO GO LOOK FOR THEM AND HERE THEY ARE. MAKING SURE THEY MEET UP WITH THE QUALIFICATIONS. 
          THANK YOU FOR THAT. I THINK -- I'LL BE GOING TO EVENTS ALL SUMMER TO SEE HOW IT'S GOING AND MAKING SURE EVERYTHING IS CLEAN. THANK YOU FOR PRESENTING. 
          THIS WAS CONCERNING BUT I'M CONFIDENT THAT YOU'LL BE TAKING CARE OF THE ISSUES AND I THINK YOU'VE COMMUNICATED TO THE CONTRACTOR THAT WE'RE CONTRACTING WITH, IF THEY DON'T TAKE CARE OF THE ISSUES WHAT OUR NEXT STEPS WILL BE. LOOK FORWARD TO HEARING SOME CONVERSATION FROM MY COMMITTEE MEMBERS. WOULD ANYONE LIKE TO VOLUNTEER TO GO FIRST? 
          COUNCILMAN WHYTE. >> WHYTE: THANK YOU, CHAIR. 
          I'M GOING TO BE BRIEF. THIS IS CONCERNING, AS IS THE REPORT WE'RE GOING TO GET ON THE NEXT ONE ON THE SHORT-TERM RENTALS. PRIMARILY, BECAUSE I THINK THAT POTENTIALLY WE ARE LOSING REVENUE AS A CITY. JUST AS A RESET HERE, THIS IS OVER A $10 MILLION CONTRACT AND WHAT WE'VE SEEN HERE, THE HIGHLIGHTS ARE THAT WE ARE, YOU KNOW, THIS GROUP IS NOT APPROPRIATELY APPROVING PHYSICAL ACCESS TO THE ALAMODOME. AND WE'RE ALSO NOT -- THEY'RE NOT CONDUCTING THE APPROPRIATE DRUG SCREENINGS, CRIMINAL BACKGROUND CHECKS ON ANY INDIVIDUAL PERFORMING --E INDIVIDUALS PERFORMING SERVICES. NOR ARE WE CHECKING THAT ALL PERSONS THAT ARE WORKING FOR THESE COMPANIES ARE LEGALLY AUTHORIZED TO WORK IN THE UNITED STATES. AGAIN, POTENTIALLY -- WELL, I'M NOT GOING TO GO THERE BUT IT'S NOT GOOD. NOW, ON THE FINANCIAL SIDE, IT LOOKS LIKE THIS AUDIT -- THANK YOU FOR THE AUDIT, BY THE WAY. THIS IS REALLY VALUABLE WORK, BOTH HERE AND THE NEXT ONE. BECAUSE IT CAN HELP US GET BETTER AND IT CAN HELP US WITH SOME OF THESE REVENUE PROBLEMS. MY QUESTION IS:  IT LOOKS LIKE A SAMPLE WAS DONE OF EMPLOYEES FOR 76 WORK ORDERS. AND WE DETERMINED THAT 24 WORK ORDERS WERE NOT FULFILLED WITH THE CORRECT NUMBER OF SUBCONTRACTOR EMPLOYEES. 
          SO AND THEN IT GOES ON TO SAY THE DEPARTMENT DOES NOT HAVE EFFECTIVE PROCEDURES IN PLACE TO MONITOR THE NUMBER OF CONTRACTUAL EMPLOYEES PRESENT AT THE ALAMODOME OR THE CONVENTION CENTER TO ENSURE PROPER STAFFING LEVELS ARE MET. 
          MY QUESTION IS THIS -- WELL, LET ME CONTINUE HERE. WE LOOKED AT A SAMPLE OF 50 INVOICES TOTALING $553,000 FOR HOURS WORKED BY THE CONTRACTED EMPLOYEES AT THE 
          [01:15:05]
ALAMODOME. WERE WE POTENTIALLY PAYING FOR INDIVIDUALS WHO THE CONTRACTOR SAYS WAS WORKING AT THE ALAMODOME BUT MAYBE THEY ACTUALLY WEREN'T THERE 
          WORKING? >> COUNCILMAN, WE DON'T BELIEVE SO BUT WE DO NOT HAVE THE SIGN-IN SHEETS FOR THAT. SINCE THEN, WE HAVE IMPLEMENTED THE -- THE PRIME CONTRACTOR HAS IMPLEMENTED A NEW SYSTEM WHERE EMPLOYEES CLOCK IN. IT'S BEING WITNESSED BY AN ALAMODOME EMPLOYEE. 
          THAT WILL BE UTILIZED TO RECONCILE THE INVOICES MOVING FORWARD. 
          >> WHYTE: SURE. WE JUST DON'T HAVE THE ACCURATE OR COMPLETE INFORMATION TO BE ABLE TO KNOW FOR SURE. BUT WHAT IT SOUNDS LIKE, FROM WHAT I'M READING IN HERE, WE COULD HAVE BEEN PAYING FOR PEOPLE TO BE DOING WORK WHERE THOSE PEOPLE WERE NEVER ACTUALLY THERE DOING WORK. 
          IT SAYS OF THE 37 INVOICES REVIEWED, THE PRIME CONTRACTOR COULD NOT PROVIDE SIS FOR 20 INVOICES. AS A RESULT WE WERE NOT ABLE TO DETERMINE IF THE BILLING FOR SERVICES ON THESE INVOICES WERE ACCURATE. SO THAT'S WHAT YOU'RE 
          BASICALLY REFERRING TO THERE, RIGHT? >> THAT IS CORRECT. 
          >> WHYTE: WE DON'T KNOW WE WERE GETTING BILLED THE ACTUAL AMOUNT. 
          THUS WE COULD HAVE BEEN PAYING FOR SERVICES WE DID NOT RECEIVE. 
          >> THAT COULD HAVE BEEN THE SITUATION. WE DON'T BELIEVE SO. 
          WE WORKED VERY CLOSELY. THE OPERATIONS MANAGER AT THE ALAMODOME WORKS VERY CLOSELY TO DETERMINE THE NUMBER OF PEOPLE THAT THEY NEED. 
          SOMETIMES THEY DON'T GET ALL OF THE STAFF THAT IS REQUESTED. 
          AND BUT THEY WORK VERY CLOSELY. THE JOB DID GET DONE. 
          WHATEVER WAS REQUESTED. THE CONVERSION OR THE CLEANING OF THE FACILITY, WHETHER IT WAS BEFORE THE EVENT, DURING, OR AFTER THE EVENT GOT DONE. 
          AND USUALLY THEY HAVE A GOOD SENSE OF HOW MANY PEOPLE ARE REQUIRED FOR THAT. 
          BUT CAN WE SAY THEY ALL WORKED THIS MANY HOURS? WE CANNOT, AT THIS POINT. 
          BUT WE HAVE REMEDIED THAT. >> WHYTE: I'M NOT ACCUSING ANYBODY OF ANYTHING BUT OF COURSE ONE OF THESE VENDORS COULD SAY WE NEED 100 PEOPLE TO DO THIS AND YOU HAVE TO PAY US X. BUT REALLY, THEY'RE ONLY GETTING IT DONE WITH 70 PEOPLE AND WE'RE PAYING TOO MUCH. THAT'S MY CONCERN. 
          I APPRECIATE THIS AUDIT. IT REALLY HIGHLIGHTS THE NEED FOR PROPER DOCUMENTATION SO WE CAN BUTTON THIS UP FURTHER. AGAIN, IT MAY RESULT IN COST 
          SAVINGS DOWN THE LINE. THANK YOU, CHAIR. >> VIAGRAN: THANK YOU. 
          COUNCILWOMAN MEZA GONZALEZ. >> GONZALEZ: THANK YOU. THANK YOU FOR THE PRESENTATION. I SHARE THAT SENTIMENT. THIS IS VERY CONCERNING. 
          SOME FAILURES, I THINK, ON TWO OF OUR MOST PROMINENT PUBLIC VENUES WITH THE SUBSCONVENTION CENTER AND THE ALAMODOME. IT SOUNDS LIKE THEY ARE OPERATED BY THE SAME DEPARTMENT BUT HAVE DIFFERENT MONITORING 
          PRACTICES. >> THEY'RE DIFFERENT FACILITIES. 
          THEY FUNCTION VERY DIFFERENTLY. THE STADIUM VERSUS THE CONVENTION CENTER. THEY'RE VERY DIFFERENT. THE SPACES ARE DIFFERENT. 
          >> GONZALEZ: I UNDERSTAND PHYSICALLY THEY'RE DIFFERENT, OBVIOUSLY. 
          BUT I'M TRYING TO UNDERSTAND HOW THEY ARE, ON THE MONITORING SIDE, THE NEEDS ARE SIMILAR IN THE SENSE OF -- ESPECIALLY IN JANITORIAL SERVICES. 
          AFTER BIG EVENTS, THERE IS CLEANUP AND PREP BEFORE THE BIG EVENT. 
          SO WHY ARE THEY MONITORED DIFFERENTLY? >> THE DIFFERENCE -- ONE OF THE BIG DIFFERENCES IS WHEREAS THE CONVENTION CENTER HAS A FULL-TIME STAFF THAT DOES THE CONVERSIONS, DOES THE CLEANING. ONLY REQUIRES SUPPLEMENTAL LABOR TO ASSIST DURING MAJOR EVENTS. THE ALAMODOME DOESN'T HAVE THAT. WE REQUIRE THIS CONTRACTOR TO PROVIDE THE EMPLOYEES TO DO THE CLEANING, TO HELP WITH THE CONVERSION BECAUSE WE HAVE LIMITED STAFF AT THE ALAMODOME. BUT NOW WE HAVE IMPLEMENTED FORMS POLICIES THAT ARE VERY SIMILAR. AGAIN, DEPENDING ON THE OPERATION, THEY MIGHT DIFFER A LITTLE BIT. BUT WE'RE TRYING TO KEEP THEM CONSISTENT FOR BOTH 
          FACILITIES. AS MUCH AS POSSIBLE. >> GONZALEZ: CAN YOU SAY NOW THAT WE HAVE A STANDARD OPERATING PROCESS FOR BOTH -- COULD YOU SAY THAT 
          WITH CONFIDENCE? >> YEAH, I CAN SAY THAT WITH CONFIDENCE. 
          DEPENDING ON THE OPERATION, WE DO HAVE POLICIES AND PROCEDURES AS FAR AS HOW WE SIGN IN PEOPLE, HOW THEY ACCESS THE FACILITY TO ENSURE THAT EVERYBODY HAS A BADGE OR EVERYBODY HAS BEEN PROCESSED TO ENTER THE FACILITY. 
          >> GONZALEZ: I HAD A QUESTION TOO ON THIS $553,000. 
          YOU ALL HAVE NOT YET DETERMINED IF OVERPAYMENT OCCURRED? 
          [01:20:02]
          OR DID YOU DETERMINE THAT? >> NO. AT THIS POINT, BECAUSE THERE WERE NO SIGN-IN SHEETS THAT WERE AVAILABLE TO RECONCILE WITH THE INVOICES. 
          WE WERE NOT ABLE TO DETERMINE THAT. BUT WE DO HAVE ALREADY A PROCESS IN PLACE WHERE ALAMODOME EMPLOYEES ARE WITNESSING THE CLOCKING IN. 
          WE HAVE THOSE REPORTS THAT WILL BE RECONCILED WITH THE INVOICES ONCE WE RECEIVE 
          THEM. >> GONZALEZ: WOULD THE CITY BE ABLE TO PURSUE ANY 
          SORT OF RECOVERY ON THAT $553,000? >> WE DON'T BELIEVE, COUNCILWOMAN, THAT WE OVERPAID. AGAIN, GOING BACK TO, YOU KNOW, THE PERIOD AND THOSE INVOICES THAT WERE REVIEWED. THE JOB DID GET DONE. 
          THEY DID PRODUCE PLEASED. EMPLOYEES. WE CAN'T SAY, WITH ACCURACY, THAT THE NUMBER OF HOURS BILLED WERE THE ONES THAT WERE RECEIVED. 
          >> GONZALEZ: THANK YOU. I APPRECIATE YOUR COMMENTS. THANK YOU. 
          >> VIAGRAN: REPRESENTATIVE PACHECO. >> PACHECO: JUST A QUESTION ON THE FEEDBACK MECHANISMS FOR THESE TWO VENUES. 
          DO WE KNOW IF WE CHECK IN WITH ATTENDEES TO ASK IF THEY THOUGHT IT WAS CLEAN? I KNOW SOMETIMES YOU GO TO AIRPORTS THEY HAVE THE BUTTON WHERE THEY CAN SAY 
          IT'S CLEAN. DO WE DO THAT? >> WE DO, SIR. 
          >> PACHECO: HOW ARE THOSE? >> MOST OF THE TIME WE GET REALLY GOOD RESULTS WHEN IT COMES TO THE PARKING, WHENEVER THEY ARRIVE TO THE FACILITY, WHENEVER THEY'RE IN THE FACILITY. AS SOON AS THE GUEST EXPERIENCE, THEY'RE REALLY 
          HIGH SCORES. >> PACHECO: GOOD TO HEAR. >> VIAGRAN: PATRICIA AND THE TEAM OVER AT THE CONVENTION AND ALAMO, AS WE TALK ABOUT CUSTOMER FEEDBACK, THAT'S ONE THING WE WANT TO BE ABLE TO SEE IS HOW THE DIFFERENT DEPARTMENTS ARE TAKING THAT FEEDBACK. I THINK THE ONE CONCERN YOU HEAR -- AND I'LL JUSTICE PUT IT OUT THERE -- IS -- AS I MENTIONED BEFORE -- I'M AT THE ALAMODOME FOR THE CONCERTS. I'M AT THE CONVENTION CENTER FOR THINGS. THERE ARE PEOPLE CONSTANTLY CLEANING THE BATHROOMS. I THINK THE CONCERN HERE IS IS IT POSSIBLE THAT THEY -- AND THEY'RE NOT CITY EMPLOYEES. THEY'RE SUBCONTRACTORS OR CONTRACTORS. 
          ARE THEY TAKING ON MORE THAN THEY SHOULD? AND ARE THEY GETTING PAID EQUITABLY? AGAIN, TO COUNCILMAN WHYTE. IF THEY'RE LIKE, HEY, WE CAN DO THIS WITH 70 PEOPLE BUT THEY'RE WORKING 10, 12 HOURS BECAUSE IT'S A COMIC-CON AND THEY'RE THERE ALL DAY. THAT'S NOT FAIR TO THEM BUT THAT'S BETWEEN THEM AND THEIR EMPLOYERS. I THINK WITH US, IF WE HAVE THAT MONITORING, IF WE HAVE THE SIGN-IN SHEET, IF WE HAVE THE CLOCK-IN SHEET, WE CAN SEE IF OUR JANITORIAL SERVICES ARE BEING KIND OF WORKED TO THE BRINK BY THEIR CONTRACTORS OR THEIR SUBCONTRACTORS. I THINK THAT'S ONE THING WE KIND OF WANT TO SEE AND WHY WE WANT TO MONITOR THAT. NOW IF THEY'RE LIKE, OH, I AGREE. 
          THEY GIVE ME OVERTIME, EXTRA PAY. WE WANT TO MAKE SURE WE'RE FOLLOWING THE RULES AND WE STAND BY OUR PRINCIPLES, THAT WE ARE EQUITABLE AND NOT WORKING PEOPLE TO THE POINT WHERE THEY DON'T WANT TO COME BACK OR THEY HAVE A 12-HOUR DAY. AGAIN, THAT'S A CHOICE. SOME PEOPLE DO 12-HOUR DAYS. 
          SOME PEOPLE DO -- AND THEY TAKE THE REST OF THE TIME OFF. 
          WE WANT TO MAKE SURE THAT THEY'RE GETTING COMPENSATED EQUITABLY FOR THAT AND NOT, AS COUNCILMAN WHYTE SAID, THEY'RE DOING IT WITH 70 AND POCKETING -- NOT POCKETING BUT WHERE'S THE MONEY FOR THE OTHER 30? ARE THEY SHARING IT WITH THE EMPLOYEES OR IS THAT GOING BACK TO THE CONTRACTOR? I HAVE SEEN IT IS CLEAN AND THEY HAVE BEEN MAKING STRIDES. I THINK, AS WE TALK ABOUT -- WE WANT BACKGROUND CHECKS BUT JUST BECAUSE YOU WERE JUSTICE INVOLVED DOESN'T MEAN YOU DON'T DESERVE A SECOND CHANCE AND CAN'T HAVE THIS JOB. 
          WE JUST NEED TO KNOW IT, I THINK IS ONE OF THE OTHER THINGS WE'RE SAYING. 
          OR AT LEAST THAT I'M SAYING. THANK YOU FOR THE PRESENTATION. 
          YES. COUNCILWOMAN MEZA GONZALEZ. >> GONZALEZ: WAS THE OFFICE OF MUNICIPAL INTEGRITY INVOLVED IN ANY OF THIS AFTER THE FINDINGS OF 
          THE REPORT? >> NO, NOT ON THIS ONE. NO. 
          >> GONZALEZ: 
          >> YOU KNOW, MUNICIPAL INTEGRITY USUALLY, IF THERE'S SOME KIND OF INAPPROPRIATENESS, YOU KNOW, FROM AN EMPLOYEE, A CITY EMPLOYEE. 
          [01:25:03]
WE DON'T BELIEVE SO. I THINK WHAT HAPPENED IS A COMBINATION OF THINGS. 
          YOU KNOW, IT WAS TRAINING. IT WAS -- YOU KNOW, WE WERE COMING BACK FROM COVID. 
          SO A LOT OF TURNOVER, ALSO, WITHIN CERTAIN AREAS. ONE THING THAT I WANT TO EMPHASIZE, WE'VE PUT IN PROTOCOLS, PROCEDURES IN PLACE TO REMEDY ALL OF THIS. 
          AND WE FEEL THAT MOVING FORWARD WE FEEL CONFIDENT THAT THE CITY WILL NOT BE -- WE WON'T FEEL WE'RE IN A POSITION SAYING, HEY, WE HAVE OVERPAID FOR SOMETHING. 
          THERE'S CLEAR PROCEDURES IN PLACE NOW TO CORRECTLY MONITOR, YOU KNOW, THESE 
          CONTRACTS. >> I CAN'T SAY FOR CERTAIN THEY WERE NOT INVOLVED, BUT I CAN VISIT WITH RENEE AND WE CAN COME BACK AND CONFIRM THAT FOR YOU. 
          >> VIAGRAN: ALL RIGHT. WE'VE GOT A MOTION AND A SECOND. 
          CAN WE GET A -- ALL IN FAVOR SAY AYE. >> 
          >> VIAGRAN: ALL OPPOSED SAY NO, NAY. AYES HAVE IT, MOTION CARRIES. WE'LL MOVE ON TO OUR NEXT ITEM. 
          WE'RE ABOUT TO LOSE ONE OF OUR COUNCIL MEMBERS HERE SOON SO LET'S GO AHEAD. 
          THE FLOOR IS YOURS. THANK YOU. >> GOOD MORNING. 
          MY NAME IS ABIGAIL ESTEVEZ AND I'LL BE PRESENTING THE RESULTS OVER THE AUDIT OF FINANCE AND DEVELOPMENT SERVICES SHORT-TERM RENTALS. OUR OVERALL OBJECTIVE WAS TO DETERMINE IF FINANCE AND DEVELOPMENT SERVICES WERE ADEQUATELY MONITORING FOR COMPLIANCE WITH THE HOTEL OCCUPANCY TAX ORDINANCES FOR SHORSHORT-TERM RENTALS. 
          WE DETERMINED THEY WERE NOT PROPERLY MONITORING. AT THE TIME OF THE AUDIT MONITORING CONTROLS OVER THIS PROGRAM DID NOT EXIST OR WERE NOT SUFFICIENT . 
          SPECIFICALLY, WE IDENTIFIED ISSUES WITH PROPERTY IDENTIFICATION, REVENUE REPORTING, REVENUE COLLECTIONS, AND CONTRACT MONITORING EFFORTS. 
          SO TO BEGIN WITH SOME BACKGROUND, FISCAL YEAR 2019, OPERATORS OF SHORT-TERM REVENUE PROPERTIES BECAME REQUIRED TO OBTAIN A PERMIT AND PAY A HOT TAX BASED ON REPORTED REVENUES. ON STRS CLASSIFIED AS A PROPERTY THAT RENTS OUT A PORTION OR ALL OF ITS RESIDENCE FOR A TIME PERIOD BETWEEN 12 HOURS AND 30 DAYS. SO AGAIN, AT THE TIME OPERATORS WERE REQUIRED TO SELF-REPORT THE REVENUE THEY WERE GENERATING ON A MONTHLY BASIS AND THEN PAY A 10.75% HOT TAX BASED ON THAT REVENUE. 
          FINANCE AND DEVELOPMENT SERVICES ARE BOTH INVOLVED IN PROGRAM EXECUTION. 
          DEVELOPMENT SERVICES IS RESPONSIBLE FOR RESEARCHING POTENTIAL STRS OPERATING WITHOUT A PERMIT AS WELL AS FOR HANDLING THE OVERALL PERMITTING PROCESS. 
          WHILE FINANCE IS RESPONSIBLE FOR REVENUE AND CONTRACT MONITORING. 
          OUR FIRST RECOMMENDATION WAS OVER PROPERTY IDENTIFICATION. 
          WE DETERMINED THAT STR IDENTIFICATION BY AVENUE WAS NOT MONITORED. 
          AN AVENUE IS A CONTRACTOR THAT WAS ENGAGED TO HELP WITH THE OVERALL PROGRAM EXECUTION. AND PART OF THE RESPONSIBILITIES INCLUDED IDENTIFICATION EFFORTS FOR PROPERTIES. WE ALSO DETERMINED THAT PROCEDURES WERE INSUFFICIENT TO ADEQUATELY RESEARCH AND INVESTIGATE POTENTIAL STRS THAT WERE OPERATING WITHOUT A PERMIT. SO WE REVIEWED A SAMPLE. 
          WHILE THE DOCUMENTATION CONCLUDED THAT A SAMPLE OF THESE WERE NOT INDEED OPERATING AS SHORT-TERM RENTAL PROPERTIES. OUR WORK CONCLUDED THAT ADDITIONAL RESEARCH WAS WARRANTED. LASTLY, WE DETERMINED THAT DOCUMENTATION MAINTAINED WITHIN ACCELA DID NOT SUPPORT THE RESULTS OF THE RESEARCH EFFORTS PERFORMED FOR SOME OF THESE PROPERTIES THAT WERE POTENTIALLY OPERATING AS UNPERMITTED SHORT-TERM RENTALS. WE RECOMMENDED THAT DEVELOPMENT SERVICES COLLABORATE WITH FINANCE TO ESTABLISH MONITORING PROCEDURES AND THAT THEY ENSURE PROPERTIES ARE ADEQUATELY RESEARCHED AND THAT SUPPORTING DOCUMENTATION REQUIREMENTS ARE DEFINED TO HELP SUPPORT THE CONCLUSIONS REACHED. OUR NEXT SET OF RECOMMENDATIONS PERTAIN TO REVENUE AND REPORTING AND MONITORING. WE DETERMINED THAT AVENUE WAS NOT PROVIDING NON-REPORTING NOTICES TO THESE SHORT-TERM RENTAL PROPERTIES THAT WERE NOT KEEPING UP WITH REPORTING REVENUE ON A MONTHLY BASIS. 
          THEREFORE, PERMITS COULD NOT BE REVOKED AS THESE NON-REPORTING NOTICES ARE A PREREQUISITE IN ORDER TO EXERCISE PERMIT REVOCATION, WHERE NECESSARY. 
          WE ALSO DETERMINED THAT SHORT-TERM REVENUE REPORTED WAS NOT VALIDATED FOR ACCURACY. AGAIN, THIS IS A SIGNIFICANT CONTROL -- AT THE TIME THIS 
          [01:30:05]
REVENUE WAS SELF-REPORTED BY THESE INDIVIDUALS, COMPANIES THAT ARE OPERATING THESE SHORT-TERM RENTAL PROPERTIES. LASTLY, WE DETERMINED THAT THERE WAS A LACK OF CONTROLS TO COLLECT PAST-DUE HOT REVENUE. 
          AN EXAMPLE WOULD BE A PROPERTY IS NOW IS PERMITTED SHORT-TERM RENTAL PROPERTY. 
          HOWEVER, PREVIOUSLY THEY WERE OPERATING WITHOUT A PERMIT. 
          SO THEREFORE THERE WOULD BE BACK HOT TAX DUE FOR HOWEVER MANY MONTHS THEY OPERATED WITHOUT A PERMIT. THEREFORE, WE RECOMMENDED THAT FINANCE DEVELOP CONTROLS TO ENSURE THAT THESE NOTICE LETTERS ARE SENT OUT, NOT ONLY TO ENCOURAGE REVENUE REPORTING BUT ALSO TO ALLOW FOR PERMIT REVOCATION WHERE NECESSARY. 
          WE ALSO RECOMMENDED THAT THE REVENUE BE VALIDATED FOR ACCURACY AND THAT CONTROLS BE ESTABLISHED TO MONITOR AND COLLECT PAST-DUE HOT, WHERE NECESSARY. 
          OUR LAST RECOMMENDATION PERTAINED TO CONTRACT MONITORING. 
          WE DETERMINED THAT FINANCE LACKED CONTROLS TO ENSURE KEY CONTRACTUAL REQUIREMENTS WERE MET BY AVENUE, THE CONTRACTOR. THERE'S A CITY POLICY THAT A CONTRACT ADMINISTRATION ARE PLAN BE DEVELOPED TO AID IN CONTRACT MONITORING EFFORTS. 
          HOWEVER, AT THE TIME OF OUR AUDIT, A CAP HAD NOT BEEN DEVELOPED. 
          WE RECOMMENDED THAT A CONTRACT ADMINISTRATION PLAN BE DEVELOPED AND THAT MOVING FORWARD MONITORING PROCEDURES BE DEVELOPED TO HELP ENSURE THAT AVENUE IS OPERATING IN COMPLIANCE WITH CONTRACT REQUIREMENTS. BOTH FINANCE AND DEVELOPMENT SERVICES AGREED WITH OUR RECOMMENDATIONS AND HAVE SINCE DEVELOPED ACTION PLANS TO ADDRESS THE ISSUES THAT WE'VE IDENTIFIED. WITH THE LATEST COMPLETION DATE BEING IN JUNE OF 2026. THAT CONCLUDES MY PRESENTATION BUT I BELIEVE FINANCE HAS ALSO PREPARED SOME SLIDES TO SPEAK ON THEIR MANAGEMENT ACTION 
          PLAN. >> VIAGRAN: IF WE COULD GET FINANCE TO PRESENT. 
          TROY, IS THAT YOU? >> JUST FOR BREVITY PURPOSES, I'M NOT GOING TO GO THROUGH THE ENTIRE PRESENTATION. THERE'S A COUPLE OF THINGS I WOULD LIKE TO MENTION, ESPECIALLY DURING THE AUDIT PERIOD. 
          FIRST OF ALL, THANK YOU TO BUDDY AND ABIGAIL. WE WORK CLOSE WITH THEM AS A FINANCE DEPARTMENT. WE EMBRACE THESE AUDITSEN AND I THINK IT MAKES US BETTER AS WE EVALUATE AND IMPLEMENT THESE FROM A FINANCE DEPARTMENT AND FROM A CITY PERSPECTIVE. THIS IS AN AREA THAT HAS EVOLVED QUICKLY SINCE 2018 WHEN THE ORIGINAL ORDINANCE CAME INTO PLACE. WE HAD TO STAND UP THESE THINGS VERY QUICKLY. WORKING WITH MIKE SHANNON AT THE TIME AND NOW AMIN TO PUT THE PLATFORM IN PLACE, THE PROCESSES IN PLACE. THEN WE GOT HIT WITH THE PANDEMIC. DURING THE PANDEMIC, WE PAUSED THE MAJORITY OF OUR ACTIVITIES AND WE ARE STILL KIND OF PULLING OUT OF THAT. I THINK ONE OF THE THINGS WE AGREE, ONE OF OUR MAJOR AREAS IS MAKING SURE THAT THERE'S COMPLIANCE AND THAT WE ARE GETTING THE MOST REVENUE THAT THE CITY IS DUE. 
          AND DURING THE PERIOD OF THE AUDIT, WE WERE FOCUSING AS WELL WITH DSD WITH A LARGE STAKEHOLDER GROUP ON THAT VERY ISSUE. HOW DO WE ENFORCE COMPLIANCE? HOW DO WE GENERATE REVENUE? THE RESULTS OF THAT EFFORT ACTUALLY WENT INTO EFFECT IN FEBRUARY OF 2025, WHICH IS REALLY THE ENDING OF THIS AUDIT PERIOD. AND WE STARTED RECEIVING REVENUE, AS A RESULT, IN MARCH. BUT SPECIFICALLY IN WORKING WITH THAT STAKEHOLDER GROUP, IN WORKING WITH DSD, WE FOCUSED ON COMPLIANCE IN TERMS OF HOW DO WE GENERATE INCREASED COMPLIANCE AND GENERATE THAT REVENUE. SO COUNCIL PASSED THE ORDINANCE AT THAT TIME WITH SPECIFIC COMPLIANCE ISSUES, SPECIFIC FOCUS ON REVENUE GENERATION AND COMPLIANCE. SO THAT AMENDMENT APPROVED A REQUIREMENT THAT ALL PLATFORMS THAT COLLECT STATE HOT TO REMIT TO THE STATE ON BEHALF OF OUR SHORT-TERM RENTAL MOST. AIRBNB AND VRBO ARE THE MAJORITY OF THE COLLECTIONS, IN EXCESS OF 80 TO 90%. BY PUTTING THIS IN PLACE, THIS CHANGE ENSURES THAT WE HAVE 100% COMPLIANCE FOR THE COLLECTION OF OUR HOT. WHEN AN OPERATOR USES AIRBNB AND VRBO THAT USE AN STR. THIS WAS EFFECTIVE IN FEBRUARY OF 2025 IN AIRBNB AND HOME AWAY . WE BEGAN COLLECTING HOT FROM THOSE SHORT-TERM RENTAL HOSTS AND REMITTING THOSE DIRECTLY TO THE CITY. SO IN TERMS OF COMPLIANCE, WE WERE GOING DIRECTLY -- IT WAS STRS HAD TO REMIT THOSE ON THEIR OWN, THERE WAS NO COMPLIANCE. WE HAD THAT ISSUE. WE HAD TO FOLLOW UP. 
          THIS ENSURES DIRECT AND 100% COMPLIANCE. AS A RESULT -- THIS WAS OUR 
          [01:35:02]
FOCUS AREA DURING THAT TIME PERIOD -- OUR SHORT-TERM RENTAL HOT COLLECTIONS FOR FISCAL YEAR 2025 FROM MARCH FORWARD, WE INCREASED THOSE RESULTS BY 72.1%. 
          IN TOTAL, $9.6 MILLION IN REVENUE FOR FISCAL YEAR '25. WITH APPROXIMATELY 4,370 STRS OPERATING IN SAN ANTONIO. JUST FOR COMPARATIVE PURPOSES -- THIS IS FISCAL YEAR 2025 REVENUE. EVERY MONTH SINCE MARCH OF '24 WE HAVE DOUBLED OUR REVENUE AS A RESULT OF THIS EFFORT. 
          SO I WANT TO MENTION THAT BECAUSE I THINK THAT'S ADDITIONAL CONTEXT. 
          DURING THAT AUDIT PERIOD, THIS IS WHERE OUR FOCUS WAS. WE 100% AGREE WITH BUDDY AND ABIGAIL'S AUDIT FINDINGS. WE'RE PUTTING THOSE IN PLACE. 
          BUT DURING THAT TIME, THIS WAS OUR MAIN FOCUS TO MAKE SURE WE WERE GETTING THAT COMPLIANCE. QUITE HONESTLY, THIS HAS CREATED SOME OTHER CHALLENGES FOR US IN TERMS OF VALIDATING, BUT WORKING THROUGH THAT AS WELL. 
          IN TERMS OF THE AUDIT RECOMMENDATIONS, WE'RE WORKING THROUGH THESE. 
          DSD HAS ADDRESSED THEIRS. AND WE'RE GOING TO MAKE SURE THAT THESE ARE CORRECTED MOVING FORWARD. WITH THAT CONTEXT, WE'RE AVAILABLE FOR ANY QUESTIONS, 
          AMIN AND I. >> VIAGRAN: GREAT. CAN I GET A MOTION AND A 
          SECOND AND THEN -- >> 
          WHYTE. >> WHYTE: THANK YOU, CHAIR. 
          AGAIN, BUDDY, GREAT WORK HERE. DISTURBING RESULTS. 
          I HAVE TO SAY AGAIN. 921 STRS OPERATING WITHOUT A PERMIT. 
          TROY JUST PUT UP 4370 TOTAL STRS. ARE THOSE PERMITTED OR NOT? ARE THOSE TOTAL? IF IT'S 921 OUT OF THE 4370 STRS, THAT WOULD MEAN 21% 
          OF OUR STRS DON'T HAVE PERMITS. >> GOOD MORNING. 
          WE HAVE 3350, 3,350 PERMITTED STRS TODAY. >> WHYTE: SO 3350 ARE PERMITTED, WE HAVE 4300 TOTAL, SO THERE'S 100 THAT ARE NOT PERMIT. 
          SORRY. 1,000 NOT PERMITTED. OKAY. 
          SO THAT'S SOMETHING I AM ASSUMING WE'RE GOING ABOUT CORRECTING. 
          THE REVENUE REPORTING, NOT BEING -- STR REVENUE REPORT BY OPERATORS IS NOT VALIDATED FOR ACCURACY. I GUESS -- WAS THAT PRIOR TO THIS ORDINANCE CHANGE? 
          OR DO WE STILL HAVE THAT ISSUE? >> ELLIOTT: THAT WAS PRIOR TO THE ORDINANCE CHANGE. THE ORDINANCE CHANGE HAS CREATED SOME ADDITIONAL CHALLENGES THAT WE'RE WORKING THROUGH. SO THE CHALLENGE STILL 
          EXISTS, IT'S JUST DIFFERENT NOW. >> WHYTE: BUT WE'RE ON THE PATH TO MAKING SURE THAT THIS REVENUE IS GETTING REPORTED CORRECTLY. 
          THIS HOT TAX GOES TO FUND A LOT OF THINGS. CHAIR KNOWS BETTER THAN ME ON SOME OF THAT. I GUESS MY QUESTION IS ON THE PAST HOT REVENUE WE HAVEN'T COLLECTED, DO WE HAVE ANY IDEA -- DID THE AUDIT SHOW US HOW MUCH THAT IS? AND IF IT'S A SIGNIFICANT ENOUGH FIGURE, ARE WE DOING 
          SOMETHING TO TRY TO GO BACK AND GET IT. >> ELLIOTT: WE ARE GOING TO GO BACK AND TRY TO GET AS MUCH AS WE CAN. THE AUDIT WAS ON A SAMPLE BASIS SO I DON'T THINK THEY HAVE THE FULL POPULATION. WE NEED TO WORK WITH OUR CONTRACTOR TO GO BACK, BASED ON WHAT WAS REPORTED. AND HOW THIS IS ACTUALLY ESTIMATED IS WE GET REPORTS FROM STRS. WE COMPARE THOSE REPORTS TO WHAT THE PLATFORM THAT'S ACTUALLY RENTING. OUR CONTRACTOR. 
          WE HAVE A COMPLIANCE TEAM. WE HAVE OUR CONTRACTOR, AVENUE, THAT CAN ALSO GO 
          AFTER THESE AMOUNTS THAT HAVE NOT BEEN REMITTED. >> WHYTE: I GUESS WE'VE 
          GOT FOUR YEARS TO DO IT. >> ELLIOTT: WE DO. >> WHYTE: OKAY. 
          WELL, CHAIR, THANKS FOR LETTING ME GET IN BECAUSE I DO HAVE TO RUN. 
          I WANT TO SAY IN A TIME WHERE WE HAVE THESE BUDGET ISSUES, IN A TIME WHERE WE'RE TALKING ABOUT RAISING TAXES ON THE CITIZENS. TO ME, BEFORE WE EVEN LOOK AT RAISING TAXES ON THE PEOPLE, WE'VE GOT TO BE DOING THIS KIND OF WORK TO FIGURE OUT WHERE ARE WE NOT COLLECTING THE REVENUE THAT WE SHOULD BE. 
          BECAUSE ALL THESE BUDGET DEFICITS AND SHORTFALLS AND THINGS LIKE THAT ARE FOR SURE WOULD NOT BE AS GREAT AS THEY ARE IF WE WERE COLLECTING SOME OF THIS 
          [01:40:04]
REVENUE. CHAIR, I DO HAVE TO BE EXCUSED, AND THANK YOU FOR 
          LETTING ME GET IN. >> VIAGRAN: THANK YOU. COUNCILWOMAN MEZA GONZALEZ. 
          >> GONZALEZ: THANK YOU. THANK YOU FOR THE PRESENTATION. 
          I WOULD SAY THIS IS CONCERNING, ESPECIALLY GIVEN THE DEPENDENCE ON THE HOT REVENUE THAT WE HAVE ON THAT HOT REVENUE TAX. I APPRECIATE THE AUDIT REPORT AND THE WORK THAT YOU DID, BUDDY AND YOUR TEAM. DO WE HAVE A -- HOW MUCH REVENUE IS ESTIMATED TO HAVE GONE UNCOLLECTED OR UNVERIFIED DURING THE AUDIT 
          PERIOD? >> SO WE WERE UNABLE TO DETERMINE -- WE WERE UNABLE TO ANSWER THAT QUESTION AS FIRST WE WOULD HAVE HAD TO HAVE BEEN ABLE TO QUANTIFY HOW MANY WERE OPERATING WITHOUT A PERMIT. FRANKLY, WE WERE UNABLE TO 
          QUANTIFY WHAT THAT AMOUNT MIGHT BE. >> GONZALEZ: CAN WE NOW 
          QUANTIFY IT? >> ELLIOTT: WE CAN COME UP WITH AN ESTIMATE BUT IT'S STILL GOING TO COME BACK TO THAT DETAILED RESEARCH WITH THE RECONCILIATION PIECE I 
          JUST MENTIONED TO COUNCILMAN WHYTE. >> GONZALEZ: DO YOU KNOW IF AVENUE IS COLLECTING INFORMATION ON HOW MANY OF THE SHORT-TERM RENTALS HAVE 
          ANY COVENANT OR DEED RESTRICTIONS? >> ELLIOTT: I DON'T 
          BELIEVE THAT IS PART OF THEIR CONTRACT. >> I DON'T HAVE AN EXACT NUMBER. WE CERTAINLY ADVISE CUSTOMERS THAT THEY SHOULD BE CHECKING TO SEE IF THEIR COMMUNITY HAS CODES, COVENANTS, AND RESTRICTIONS. 
          WE CAN'T ENFORCE THAT BUT WE WANT TO MAKE SURE THEY'RE AWARE THEY NEED TO LOOK INTO THAT. IF I CAN, TO YOUR PREVIOUS QUESTION. 
          WHEN WE DID UPDATE THE ORDINANCE AND ADJUSTED FEES, ONE OF THE BENEFITS WE GOT WAS A DEDICATED CODE ENFORCEMENT OFFICER FOR STRS. 
          AND YOLANDA, SHE WORKS TIRELESSLY, HITS ABOUT 75 PROPERTIES A WEEK THAT LACK A PERMIT. WHEN WE IDENTIFY PROPERTIES THAT ARE OPERATING WITHOUT A PERMIT, THEY DON'T GET A PERMIT UNTIL THEY PAY THEIR PAST-DUE HOTEL OCCUPANCY TAX. THE CONTRACT WE HAVE WITH AVENU TELLS US WHO IS OPERATING WITHOUT A PERMIT, WHAT THEIR NIGHTLY RATE IS, HOW MANY NIGHTS WE HAVE RENTED, SO WE'RE ABLE TO WORK WITH THE FINANCE DEPARTMENT TO MAKE SURE 
          THOSE FOLKS PAY UP. >> GONZALEZ: DISTRICT 8, SHORT-TERM RENTALS ARE A SENSITIVE TOPIC FOR US BECAUSE WE HAD A HORRIBLE INCIDENT, A MURDER AT ONE OF THESE STRS. SOMEBODY DIED. I LIVE NEXT DOOR TO A SHORT-TERM RENTAL AND I HAD 100 KIDS THREE WEEKS AGO. I'M NOT MAKING THAT UP. 
          A LOT OF PHONE CALLS WERE MADE TO PD THAT NIGHT. IT'S A SERIOUS ISSUE. 
          I UNDERSTAND THAT THIS IS A GROWING SEGMENT OF OUR POPULATION BUT THOSE PERMITS EXIST FOR A REASON TO ENSURE THE HEALTH AND SAFETY OF THE GUESTS THAT ARE THERE. 
          BUT ALSO TO KEEP TABS ON THESE -- MAKING SURE THE SHORT-TERM RENTALS ARE GOOD NEIGHBORS AND THE RESIDENTS FEEL SAFE. AND SO I THINK IT WOULD BE IMPORTANT TOO THAT WE ASSIGN A CLEAR LEAD DEPARTMENT RESPONSIBLE FOR THIS. 
          I KNOW FINANCE AND DSD HAS SOME OF THIS, BUT I THINK A CLEAR LEAD SO WE KNOW WHO TO GO TO. MOST OF US GO TO DSD BUT THAT'S IMPORTANT. 
          I THINK IN THE APPLICATION PROCESS, I KNOW THAT ACKNOWLEDGING THE DEED RESTRICTIONS -- AND IT'S UP TO THE OWNER. BUT I THINK IF THERE'S ANYTHING WE CAN DO FOR A STRONGER ACKNOWLEDGMENT IN THAT -- BECAUSE RIGHT NOW IN THE PERMIT APPLICATION, IT'S JUST AN IMPORTANT NOTICE. IT'S ON THE BOTTOM THAT RESPONSIBILITY OF THE PROPERTY OWNER TO VERIFY THE EXISTENCE OF ANY COVENANTS. 
          IF THERE CAN BE SOME SORT OF CHECK BOX. SOMETHING SMALL, SIGNIFICANT SO WE KNOW -- AND ALSO THE OPERATOR KNOWS THEIR LIMITATIONS IN THE NEIGHBORHOOD OR NOT. BUT THAT IS SOMETHING THAT COMES UP, ESPECIALLY BECAUSE A LOT OF THESE AIRBNB FOLKS ARE LOOKING FOR NEIGHBORHOODS THAT HAVE EITHER NO HOAS OR VOLUNTARY HOAS. DISTRICT 8, SPECIFICALLY, FOUR OF MY LARGEST NEIGHBORHOODS ARE VOLUNTARY HOAS. 
          SO THERE IS MORE SHORT-TERM RENTALS IN THOSE NEIGHBORHOODS BECAUSE OF THAT. AND SO IF THERE'S ANY STRONGER ACKNOWLEDGMENT THAT WE COULD PUT IN THE PERMIT APPLICATION, AGAIN JUST THAT CHECK BOX OR SOMETHING, THAT 
          WOULD BE HELPFUL. >> WE'LL WORK WITH THE CITY ATTORNEY'S OFFICE TO GET AS CLOSE TO THE LINE OF CCNRS. WE TAKE THE COMMUNITY SAFETY 
          [01:45:08]
VERY SERIOUSLY. WHETHER IT'S FOR HOT DELINQUENCY OR PROBLEMS LIKE THE ONES YOU DESCRIBED. WE HAVE REVOKED OVER 3100 PERMITS SINCE THIS PROGRAM 
          CAME INTO BEING. >> GONZALEZ: WE JUST HAD A CONVERSATION ABOUT A COMMUNICATIONS -- WHAT IS IT? THE MARKETING AND -- THAT, TO ME, IS COMMUNICATIONS. HOW WE COMMUNICATE OTHER BIG PROJECTS THAT WE'RE WORKING ON AS A CITY IS IMPORTANT, OBVIOUSLY. BUT EVEN STUFF LIKE THAT IS SO IMPORTANT TO OUR NEIGHBORHOODS. FOR THEM TO KNOW THAT WHAT WE ARE DOING AND WE ARE REVOKING PERMITS. IT HELPS US TOO TO SHARE THAT MESSAGE IF THERE'S ANY SORT OF TEMPLATE OR GRAPHIC WE COULD PUT ON OUR NEWSLETTER. AIRBNBS COME UP CONSTANTLY IN MY HOA MEETINGS. 
          CONSTANTLY. JUST HOW WE CAN CONNECT ALL OF THAT IS IMPORTANT. 
          >> ABSOLUTELY. WE'RE WORKING WITH THE SAN ANTONIO SHORT-TERM RENTAL ORGANIZATION. WE'VE STARTED QUARTERLY NEWSLETTERS THAT WE GET OUT TO PERMIT HOLDERS. IF WE SEE TRENDS WHERE THERE'S LACK OF COMPLIANCE OR ISSUES POPPING UP, WE CAN USE THAT TO COMMUNICATE AS WELL. 
          BUT GREAT IDEA. THANK YOU. >> GONZALEZ: THANK YOU. 
          >> VIAGRAN: THANK Y'ALL SO MUCH FOR THIS PRESENTATION. I WAS THERE IN 2023 WHEN THIS ALL UNVEILED. I THINK I WAS ON THE PLANNING COMMITTEE, TROY, WHEN YOU FIRST BROUGHT THIS TO US. I KNEW THAT THERE WERE GOING TO BE GROWING PAINS BECAUSE THIS WAS ALL NEW FOR WHAT WE WERE DOING. 
          THANK YOU, BUDDY AND THE AUDIT TEAM FOR GETTING THIS. ABIGAIL DID A GREAT JOB. 
          I KNEW THIS WAS GOING TO HAPPEN. WE DID NOT HAVE A STARTING POINT. WE DID NOT KNOW. WE KNEW WE HAD SHORT-TERM RENTALS. WE DIDN'T KNOW WHERE ALL OF THEM WERE. 
          WE DIDN'T KNOW HOW THEY WERE DOING, WHERE THEY WERE ADVERTISING. 
          THIS IS GIVING US OUR BASELINE. AND WHERE WE MOVE FROM HERE IS REALLY IMPORTANT. I THINK THE ONE THING WE'RE HEARING, AS WE APPROVE THIS AUDIT -- BUT WHAT WE NEED TO GO BACK TO -- AND AMIN, LOGAN, AND JOHN AND THE DEPARTMENT -- THERE MAY BE NEW ORDINANCES OR POLICIES COMING FROM THIS. 
          SO WE DO NEED TO HAVE SOME CONVERSATIONS WITH THE COUNCIL MEMBERS THAT THIS IS IMPACTING THEM. WE KNOW THAT FOR HOT TAX THAT IS BASICALLY MY ARTS AND CULTURE BUDGET RIGHT THERE. IN ADDITION TO VISIT SAN ANTONIO. SO HOW WE CAN BRING THEM IN TO HELP WITH THIS PROCESS IS FINE. I THINK AS MUCH AS I LOVE TROY AND BEN, THIS REALLY IS A DSD CONVERSATION WHEN IT COMES TO WORKING WITH THE COUNCIL MEMBERS. 
          THEY'RE JUST GOING TO GO COLLECT MY MONEY AND MAKE SURE WE'VE GOT IT. 
          WE DO NEED TO TALK ABOUT HOW WE ROLL THIS OUT TO OUR COMMUNITY MEMBERS AND HOW WE ROLL THIS OUT TO THE DIFFERENT NEIGHBORHOOD ASSOCIATIONS. 
          AND I'M ALL FOR NEW POLICY, NEW ORDINANCES BUT AGAIN, THIS COUNCIL NEEDS TO BE A SOLID SIX WHEN WE GET IN THERE AND WE START HAVING THESE CONVERSATIONS. 
          AND I THINK THAT THAT IS WHERE WE WANT TO MAKE SURE THAT WE CONTINUE AND MAINTAIN. THANK YOU AGAIN. THIS IS EXACTLY WHAT AUDIT IS SUPPOSED TO BE DO. THEY'RE SUPPOSED TO COME AND PRESENT AND SAY THIS IS WHAT WE FOUND. AND WE CAN TAKE THAT FROM HERE. 
          AGAIN, THE CUSTOMER SATISFACTION ON STRS, DANIEL, THAT'S GOING TO BE THE COMMITTEE THAT YOU'RE A PART OF AND HOW WE MAKE SURE THAT'S IMPLEMENTED DEPARTMENT-WIDE WITH OUR DEPARTMENT KIND OF TOUCH POINTS WITH THE COMMUNITY. 
          WITH THAT, WE HAVE A MOTION AND A SECOND. IS THERE ANY OTHER 
          DISCUSSION? ALL IN FAVOR SAY AYE. >> 
          >> VIAGRAN: ALL THOSE OPPOSED? MOTION CARRIES. 
          ALL RIGHT. WE ARE -- HOLD ON. I GOT TO GET THE ADJOURNMENT BECAUSE I DON'T KNOW IF WE'RE GOING -- THAT IS ALL THE BUSINESS FOR TODAY. 
          THE TIME IS NOW 11:50 AND THE MEETING IS ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.