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[1. Briefing and recommendations on the City’s Procurement and Preference Programs. [Ben Gorzell, Chief Financial Officer]]

[00:02:44]

>> SCULLEY: THE CITY'S PROCUREMENT PROCESS.

SO TROY ELLIOTT, OUR DEPUTY CHIEF FINANCIAL OFFICER IS HERE, AND HE'S GOING TO PROVIDE ADDITIONAL INFORMATION ABOUT THE PROGRAM AS WELL AS OUR RECOMMENDATIONS, AND HE'S GOING TO COVER OUR LOCAL PREFERENCE PROGRAM, THE VETERAN-OWNED SMALL BUSINESS PREFERENCE PROGRAM, OUR HIGH-PROFILE CONTRACTS PROCESS THAT GOES THROUGH THE AUDIT COMMITTEE, OUR LIVING WAGE REQUIREMENTS AS WELL AS A RESPONSIBLE BIDDER PROGRAM.

SO WITH THAT, I'LL TURN IT OVER TO TROY ELLIOTT.

I WILL SAY THAT HE HAS WORKED CLOSELY WITH A NUMBER OF OUR TEAM, INCLUDING RENE DOMINGUEZ, ECONOMIC DEVELOPMENT DIRECTOR WHO OVERSEES OUR SMALL BUSINESS ENTERPRISE PROGRAM, AND I ALSO WANT TO MENTION MICHAEL SINDON, WHERE'S MICHAEL? MICHAEL, PLEASE STAND UP.

HE WAS JUST, ALONG WITH MARIZA BONO IN THE MAYOR'S OFFICE, MICHAEL WAS SELECTED IN THE 40 UNDER 40 IN THE BUSINESS JOURNAL, AND HE MANAGES OUR SBEDA PROGRAM.

I JUST WANT TO ACKNOWLEDGE HIM.

HE DOES GREAT WORK.

THANK YOU, MICHAEL.

[APPLAUSE]

>> SCULLEY: SO WITH THAT, I'LL TURN IT OVER TO TROY ELLIOTT, AND RENE, TROY, MICHAEL AND ALL OF US ARE AVAILABLE, THEN, OF COURSE, TO ANSWER COUNCIL QUESTIONS.

TROY?

>> ELLIOTT: THANK YOU, SHERYL.

GOOD AFTERNOON, MAYOR AND COUNCIL.

THIS PRESENTATION IS MADE TO ADD TO WHAT WE DID LAST WEEK.

THIS SLIDE UP HERE IS A VERY HIGH LEVEL ADDING TO WHAT SHERYL SAID, WE'LL BE TALKING ABOUT THE LOCAL PREFERENCE PROGRAM, OUR BETTER KNOWN SMALL BUSINESS, RESPONSIBLE BIDDER PROGRAM.

THIS SUMMARIZES THE RECOMMENDATIONS THAT WE WILL BE MAKING TODAY, AND I'VE BEEN GOING THROUGH EACH OF THESE RECOMMENDATIONS IN DETAIL, AND THEN END UP WITH THE SLIDE AS WELL, IT'S A SUMMARY.

THE FIRST THING I'D LIKE TO TALK ABOUT IS OUR LOCAL PREFERENCE PROGRAM AND OUR VETERAN-OWNED SMALL BUSINESS PROGRAM.

AND JUST AS A BRIEF OVERVIEW AND REFRESHER FROM LAST WEEK, OUR LOCAL PREFERENCE PROGRAM MUST BE WITHIN THE CITY LIMITS OF SAN ANTONIO BY STATE STATUTE IN ORDER TO RECEIVE A PREFERENCE.

THE PREMPSES THAT WE AWE -- PREFERENCES THAT WE OFFER UNDER

[00:05:02]

SAWT, WE OFFER A LOW BID UNDER OUR CURRENT PILOT PROGRAM OF 3%, MEANING IF A LOCAL BID IS WITHIN 3% OF A NONLOCAL BID, WE CAN AWARD TO THAT LOCAL BIDDER IF THEY'RE WITHIN THAT 3%.

ON OUR DISCRETIONARY CONTRACTS, THOSE THAT ARE NOT COVERED BY ANY POINT OF STATUTE, WE OFFER A 10-POINT PREFERENCE FOR THOSE DISCRETIONARY CONTRACTS.

FOR VETERAN-OWNED SMALL BUSINESS PROGRAM, THERE IS NO GEOGRAPHIC LIMITATION.

IF YOU ARE A VETERAN WITHIN THE NATURAL BOUNDARIES OF THE UNITED STATES, THEN YOU QUALIFY FOR PREMPS POINTS UNDER -- PREFERENCE POINTS UNDER THIS PROGRAM.

SIMILARLY TO THE LOCAL PREFERENCE PROGRAM, THE LOW BID ARE THOSE THAT ARE GOVERNED BY STATUTE, WE HAVE NO LEGISLATIVE AUTHORITY TO PROVIDE A VETERAN PREFERENCE, SO THERE IS NO PREFERENCE FOR OUR LOW BIDS.

UNDER THE DISCRETIONARY CONTRACT FOR WHICH U.S. COUNCIL HAD THE DISCRETION TO DEVELOP THESE ORDINANCES, OUR CURRENT PROGRAM DOES NOT CONSIDER THE SERVICE DISABLED VETERANS AND WE'LL BE TALKING ABOUT SOME OF THOSE PROPOSALS HERE IN A COUPLE MINUTES.

WITHIN THESE TWO PROGRAMS, AS WE'VE TUCKED IN -- TALKED IN THE PAST, THERE'S REALLY TWO COMPONENTS TO IT.

THOSE PIECES THAT ARE COVERED BY STATUTE AND THOSE THAT ARE DISCRETIONARY.

THE PIECES THAT I'D LIKE TO FOCUS ON FIRST ARE THE STATUTE LIMITATIONS OR WHAT WE CAN DO WITHIN THE STATUTE AND WHAT WE CANNOT DO WITHIN THE STATUTES.

FIRST UNDER THE -- THOSE THAT ARE GOVERNED BY STATE LAW WITH RESPECT TO LOCAL PREFERENCE AND VETERAN-OWNED SMALL BUSINESS I'D LIKE TO TALK ABOUT THE BOUNDARIES, WHAT WE'RE PROPOSING TO DO, TALK ABOUT THE MAXIMUM PRIZE VARIANCE OF 3% THEN ALSO TALKED ABOUT THOSE AREAS THAT WE'RE GOVERNED BY STATUTE WHERE WE CAN OR CANNOT PROVIDE PREFERENCES, WHAT OUR RECOMMENDATION IS TO MOVE FORWARD WITH THAT.

AS WE'VE TALKED ABOUT QUITE A BIT UNDER THE LOCAL PREFERENCE PROGRAM, OUR BOUNDARY IS THE MUNICIPAL CITY LIMITS.

THE LOCAL GOVERNMENT CODE BASICALLY SAYS A -- DEFINES A LOCAL BUSINESS AS A BIDDER WHO'S PRINCIPLE PLACE OF BUSINESS IS WITHIN THE MUNICIPALITY.

WE'VE BEEN ASKED BY SEVERAL COUNCILPEOPLE TO ACTUALLY EXPLORE EXPANDING THAT BOUNDARIES TO INCLUDE CASTLE HILLS, WIND DRES,AL -- CREST, ALAMO HEIGHTS OR LEON VALLEY.

THIS ACTUALLY CAME FOR PROCUREMENT THAT WE'RE CONDUCTING FOR SAWS WASTE SERVICES.

THERE WAS A SMALL BIDDER WHO RESIDE IN CASTLE HILLS WHO DID NOT RECEIVE THE PREFERENCE POINT.

AS THE DISCUSSION CAME UP, WHY ISN'T THAT ELIGIBLE BIDDER ELIGIBLE FOR THE PREFERENCE POINTS.

THEY ARE NOT WITHIN THE MUNICIPAL LIMITS OF THE CITY OF SAN ANTONIO, SO WE WANTED TO HAVE THIS DISCUSSION FOR THAT FURTHER.

DISCRETIONARY, IT'S YES AND NO.

IF IT'S NOT COVERED BY STATUTE, WE CAN.

COUNCIL HAS THE DISCRETION TO PICK WHATEVER BOUNDARY THEY SO WISH FOR THE APPLICATION OF LOCAL PREMPS.

IF IT'S COVERED BY STATUTE, THEN NO.

AS FAR AS OUR RECOMMENDATION, WE WOULD RECOMMEND THAT WE KEEP THE CURRENT BOUNDARY FOR A COUPLE REASONS.

ONE, IT WOULD BECOME CHALLENGING FOR US TO EDUCATE OUR VENDORS AND ACTUALLY APPLY THAT CONSISTENTLY.

SO IN ORDER TO APPLY THAT CONSISTENTLY TO OUR PROCUREMENTS, WE'D RECOMMEND KEEPING THE BOUNDARIES THE SAME AND ADHERE TO -- FOR THE LOW BID AT STATE STATUTE, THE SAME AS WE DO FOR OUR DECEMBER -- DISCRETIONARY.

ONE OF THE THINGS WE WOULD LIKE TO SEE -- OR WE WOULD RECOMMEND TO THE COUNCIL IS THAT IN OUR NEXT LEGISLATIVE SESSION, THROUGH THE INTERGOVERNMENTAL RELATIONS COMMITTEE, IS ACTUALLY WORKING ON THAT LEGISLATIVE AGENDA TO INCLUDE AN ITEM THAT WE GO FORWARD AND RECOMMEND CHANGES TO THE CURRENT STATUTES THAT GIVE US THE ABILITY TO INCORPORATE THOSE MUNICIPALITIES WITHIN THE CITY LIMITS AND BE ABLE TO PROVIDE THEM A LOCAL PREFERENCE.

THE NEXT AREA IS THE PRICE VARIANCE.

OUR CURRENT PILOT PROGRAM BASICALLY ALLOWS US IN THE CURRENT ORDINANCE TO ALLOW A PRICE VARIANCE BETWEEN -- THAT'S GOING TO BE YOUR TOP LINE UP THERE, 50,000 AND UP, WE CAN PROVIDE A 3% VARIANCE BETWEEN THE LOCAL AND THE NONLOCAL BIDDER.

WE ACTUALLY CHOSE THE THRESHOLD OF 50,000 BECAUSE FOR THE LAST YEAR, WE HAD ABOUT 8,000 PURCHASE ORDERS THAT WENT THROUGH BELOW 50,000 -- $50,000.

WHAT THAT MEANS, IF WE WANTED TO

[00:10:01]

APPLY THAT PREFERENCE BELOW 50,000, IT WOULD PROBABLY REQUIRE BASED OP OUR ANALYSIS -- ON OUR ANALYSIS AN ADDITIONAL THREE PEOPLE TO ACTUALLY CONDUCT THE ANALYSIS BASED ON THE VOLUME AND ACTUALLY AN ADDITIONAL TWO PEOPLE JUST TO MANAGE THE COMPLIANCE ASSOCIATED WITH THAT VOLUME.

UNDER 50,000, THERE'S ALSO REQUIREMENT BY STATE LAW THAT WE CONTACT TWO HISTORICALLY UNDERUTILIZED BUSINESSES THAT ARE REGISTERED THROUGH THE STATE, AND THOSE HISTORICALLY UNDERUTILIZED BUSINESSES MAY BE SMALL, VETERAN, WOMEN-OWNED, MINORITY BUSINESSES, SO WE ARE BY LAW, BETWEEN 3 AND 50,000, WE HAVE TO CONTACT TWO OF THOSE HUBS.

WHAT WE RECOMMEND IN THE AREA OF GOODS FOR OUR LOW BIDS, BASED ON STATUTE INCREASING FROM THAT 3% TO A 5%, WE'RE ALLOWED BY STATUTE BETWEEN 50 AND $500,000.

THAT $500,000 IN THE SECOND LINE IS A THRESHOLD THAT'S DEFINED BY STATUTE.

THEN LEGALLY, WE CAN ONLY PROVIDE A 3% VARIANCE ABOVE $500,000.

THE SAME IS TRUE FOR NONPROFESSIONAL SERVICES.

WE CURRENTLY HAVE IN OUR PILOT PROGRAM A 3% BETWEEN 50,500,000.

WE WOULD RECOMMEND MOVING TO THE STATE MAXIMUM (50,000 AND $500,000.

WHAT THIS MEANS IN TERMS OF COST, WHEN WE FIRST STARTED THE LOCAL PREFERENCE PROGRAM, WE DID NOT HAVE ANY HISTORICAL INFORMATION TO KNOW WHAT WAS GOING TO BE THE IMPACT OF THIS PROGRAM.

THAT WAS THE REASON WHY WE CONDUCTED THE PILOT AT 3%.

NOW THAT WE HAVE SOME INFORMATION, WE CAN ACTUALLY GO BACK HIS FORLY AND SAY, HEY, IF WE WERE AT A 5%, WHAT WOULD THIS HAVE COST? SO WALKING THROUGH THIS SLIDE, I'LL FOCUS ON THE BOTTOM LINE FOR FY 2017, WITH OUR 3% PROGRAM IN PLACE, THAT 1.9 MILLION, THAT'S $1.9 MILLION IN AWARDS THAT WERE AWARDED TO LOCAL VENDORS THAT WOULD NOT HAVE BEEN AWARDED IF WE DID NOT HAVE THE PROGRAM.

SO WITH THIS PROGRAM, WE WERE ABLE TO AWARD $1.9 MILLION TO LOCAL VENDORS THAT OTHERWISE WOULD NOT HAVE BEEN THERE.

THAT COST IN THAT 3% PROGRAM $18,000, THAT PROGRAM COST.

THE $18,000 DOESN'T HIT ONE FUND, IT'S ACTUALLY SPLIT OVER SEVERAL FUNDS.

BY MOVING TO A 5%, THERE WOULD HAVE BEEN AN ADDITIONAL $2.3 MILLION ABOVE THE 1.9 IN LOCAL AWARDS WITH AN ADDITIONAL COST OF $31,000.

SO IF THIS PROGRAM WOULD HAVE BEEN IN PLACE AT A 5%, IT WOULD HAVE COST THE CITY $50,000 IN TOTAL.

BASED ON THAT, WE WOULD RECOMMEND MOVING FROM THE 3% TO THE 5% THRESHOLD.

THE LAST AREA THAT WE HAD A LOT OF CONVERSATION ABOUT IS THOSE AREAS OF OUR PROCUREMENTS THAT ARE COVERED BY STATUTE THAT WE ARE NOT ALLOWED TO PROVIDE OR INTRODUCE A LOCAL PREFERENCE -- THE SCREEN.

CHAPTER 252 ARE GOING TO BE OUR LOW BIDS.

WE ALREADY HAVE A LOCAL PREFERENCE FOR OUR LOW BID PROGRAM, SO WE DON'T HAVE IT FOR OUR REQUEST FOR COMPETITIVE PROPOSALS.

UNDER THE VARIANT, WE DO NOT AND CAN NOT INTRODUCE A BETTER KNOWN SMALL BUSINESS PREFERENCE ON LOW BID OR REQUEST FOR COMPETITIVE STILL PROPOSALS, NOR CAN WE ENTER THE OTHER TWO CHAPTERS WITH GOVERNMENT PROFESSIONAL SERVICES.

AGAIN, PROFESSIONAL SERVICES ARE ARCHITECTURE, ENGINEERING, EXTERNAL AUDIT TYPE CONTRACTS AND ALTERNATE DELIVERY CONSTRUCTION METHODS.

AS WE TALKED ABOUT ON THE MUNICIPAL BOUNDARY, WE WOULD RECOMMEND IN THE UPCOMING LEGISLATIVE SESSION WORKING WITH THE IGR TO PROBABLY FOCUS ON CHAPTER 252 AS WE DID IN LEDGE O FORWARD AND INTRODUCE LEGISLATIVE CHANGES TO BASICALLY ALLOW US TO FOCUS ON INTRODUCING A LOCAL PREFERENCE FOR REQUEST FOR COMPETITIVE STILL PROPOSALS AND THEN FOR THE VETERAN-OWNED SMALL BUSINESS PROGRAM, BOTH FOR INVITATION FOR BIDS AND REQUESTS FOR COMPETITIVE STILL PROPOSALS.

THE SECONDARY WE TALKED ABOUT WAS PROFESSIONAL CONTRACTS.

WE HAVE TWO ITEMS FOR YOUR CONSIDERATION ON DISCRETIONARY CONTRACTS.

ONE WOULD BE N EXCEPTION TO THE LOCAL PREFERENCE PROGRAM FOR FEDERAL AND STATE LOBBYING SERVICES.

AND THE SECOND UNDER OUR DISCRETIONARY CONTRACTS WOULD BE TO EXPAND THE VETERAN PREFERENCE PROGRAM TO INCLUDE SERVICE-DISABLED VETERANS.

THROUGHOUT THE COURSE OF OUR PROCUREMENTS, THIS IS THE ONE AREA, AND WE'RE TALKING ABOUT LOBBYING SERVICES, THAT THE LOCAL PREFERENCE PROGRAM REALLY DOES NOT LEND ITSELF DURING THE PROCUREMENT.

AND WHAT I MEAN BY THAT IS WHEN WE'RE ACTUALLY LOOKING FOR LOBBYING SERVICES, THE SCOPE IS SUCH THAT IT REQUIRES OUR -- OR BE BENEFICIAL FOR THE LOBBIES EITHER TO RESIDE IN AUSTIN FOR THE STATE LOBBYING SERVICES OR IN D.C. FOR THE FEDERAL LOBBYING SERVICES.

SO IT REALLY HAS LIMITED LOCAL

[00:15:02]

PARTICIPATION DUE TO THE NATURE AND LOCATION OF THE SERVICES, AND AS A RESULT, WE WOULD RECOMMEND AN EXCEPTION TO THE ORDINANCE EXEMPTING THOSE LOBBYING SERVICES.

JUST TO GIVE YOU SOME CONTEXT, THESE LOBBYING SERVICES FOR THE -- FOR THE FEDERAL PROGRAM WERE ABOUT 400,000.

AND ABOUT 330 FOR THE STATE LOBBYING SERVICES.

THE SECOND QUESTION IS CAN WE EXPAND THE VETERAN PREFERENCE PROGRAM TO INCLUDE SERVICE-DISABLED VETERANS? LOW BID COVERED BY STATUTES -- WHY WE WOULD RECOMMEND ACTUALLY MOVING TO AMENDING THE STATUTES TO ACCOMMODATE THAT.

FOR DISCRETIONARY, WE CAN, IF IT'S NOT GOVERNED BY STATUTE.

SO ON OUR DISCRETIONARY PROCUREMENTS WHERE WE CAN, WE'D RECOMMEND ADDING ADDITIONAL FIVE POINTS TO ALLOW FOR SERVICE-DISABLED VETERANS ON OUR DISCRETIONARY CONTRACTS.

WHAT THAT MEANS FROM AN EVALUATION IN OUR POINTS,ND I THINK THIS IS -- AND I THINK THIS IS THE TABLE Y'ALL MAY HAVE SAW LAST TIME, UNDER OUR CURRENT PROGRAMS, OUR SBEDA PROGRAM, WE CAN AWARD UP TO 20 POINTS.

LOCAL PREFERENCE, 10.

OUR VETERAN-OWNED SMALL BUSINESS 5 POINTS.

WHAT WOULD BE PROPOSED WOULD BE KEEPING SBEDA THE SAME, LOCAL THE SAME, BUT AN ADDITIONAL FIVE POINTS ON OUR VETERAN-OWNED SMALL BUSINESS PROGRAM FOR A TOTAL OF 10.

IN ADDITION TO INCREASING THE VETERAN-OWNED SMALL BUSINESS POINTS, WE'D ALSO INCLUDE FOR YOUR CONVERSATION AS CAPPING THOSE POINTS AT 25.

WHAT THAT DOES FROM AN EVALUATION STANDPOINT, IT ALLOWS 75 MINIMUM FOR THE EVALUATION COMMITTEE TO TAKE INTO CONSIDERATION ON EXPERIENCE, BACKGROUND AND QUALIFICATION AND PRO PLAN AND PRICE, AND IT WOULD CAP AT 25%, OR 25 POINTS, FOR OUR PREFERENCE PROGRAMS. THIS DOES A COUPLE OF THINGS: IT ACTUALLY, IN THE EVENT IN THE FUTURE THERE'S ADDITIONAL PROGRAMS THAT WOULD BE WANTED TO BE CONSIDERED WITH ADDITIONAL PREFERENCE POINTS, IT SETS POLICY THAT IT'S GOING TO WORK WITHIN 25 POINTS.

AND SO IT SETS ASIDE 75 POINTS AT A MINIMUM FOR THE EVALUATION COMMITTEE.

AS PART OF PUTTING FORWARD THIS RECOMMENDATION, WE WENT OUT AND SURVEYED THE TEXAS CITIES AS WELL TO SEE HOW WE COMPARED FROM A POINT STANDPOINT TO OTHER CITIES LIKE AUSTIN.

IN COMPARISON TO THESE OTHER CITIES, AUSTIN HAS ABOUT 13-POINT MAX ON THEIR PROCUREMENTS.

DALLAS IS MINIMAL, THERE ARE NO POINTS FOR LOCAL OR FOR VETERANS.

AND ON THE SBEDA SIDE, THEY USE A GOOD-FAITH EFFORT PLAN.

HOUSTON, THEY ONLY ALLOW LOCAL ON THEIR STATUTE-DRIVEN PROCUREMENTS, THAT'S THE 3 AND THE 5% WE TALKED ABOUT.

AND FORT WORTH IS PROBABLY THE CLOSEST TO US WITH 20 POINTS.

AND SO WE'RE VERY PROGRESSIVE IN THIS AREA IN INCENTIVIZING OUR SMALL BUSINESSES LOCAL AND OUR VETERAN-OWNED SMALL BUSINESS PROGRAMS. ONE OF THE THINGS WE ARE LOOKING AT WITHIN THAT 25-POINT MAXIMUM AND WE WOULD HAVE THIS DISCUSSION WITH THE STAKEHOLDERS WHEN WE GO OUT TO THE COMMUNITY, IS IN ADDITION TO THE 25-POINT MAXIMUM POSSIBLY WEIGHTING THOSE RANKINGS WITHIN EACH OF THE PREFERENCE PROGRAMS SO THAT WE WOULD NOT DILUTE THE IMPORTANCE OR PRIORITY OF LIKE OUR SBEDA PROGRAM OR OTHER PROGRAMS AS WELL.

MENTIONED LAST WEEK, THE CURRENT HIGH-PROFILE DEFINITION IS DISCRETIONARY CONTRACTS VALUED OVER $1 MILLION.

WE ALSO LOOK AT IN ADDITION TO $1 MILLION, DOES IT HAVE A HIGH LEVEL COMMUNITY INTEREST OR OTHER EXCEPTIONAL INTEREST OR IS IT HIGHLY -- AND WHAT IT DOES IS ALLOWS US TO CONTINUE TO DO OUR DUE DILIGENCE OF ANYTHING A MILLION DOLLARS ABOVE AT THE LEVEL WE DO TODAY.

BUT THE OTHER ADVANTAGE OF KEEPING IT AT A MILLION DOLLARS IS THE BLACKOUT PERIOD FOR POLITICAL CONTRIBUTIONS IS TIED TO THAT 1 MILLION.

AND SO WE'D RECOMMEND CHANGING THE PROCESS AND NOT THE TRADITION, AND SO WE'D RECOMMEND CHANGING THE PROCESS TO INCLUDE FOR CONSIDERATION BY THE AUDIT COMMITTEE ONLY THOSE CONTRACTS CONTRACTS THAT GO THROUGH AS FAR AS OUR JOB OR ON-CALL CONTRACTS, AND WE WOULD KEEP THE HIGH-LEVEL COMMUNITY INTEREST AND THE HIGHLY COMPLEX OR TECHNICAL REQUIREMENT IN THERE.

WHAT THAT ALLOWS US TO DO AS FAR AS -- PRESENTING AND IT STILL REMAINS HIGHLY COMPLEX, HIGHLY POLITICAL OR HIGH-LEVEL COMMUNITY INTEREST, WE CAN STILL BRING THAT TO THE COMMUNITY, JUST --

[00:20:03]

DOES IS, BASED ON THE CURRENT PROCESS AT A MILLION DOLLARS, WHICH IS GOING TO BE YOUR LESS GRAPHIC, WHAT WE'VE TAKEN THROUGH OUR COMMITTEE AT 2018, IS A TOTAL OF 45 CONTRACTS WORTH ABOUT $387 MILLION.

WHAT THAT MEANS FOR THE COMMITTEE IS APPROXIMATELY 90 PRESENTATIONS, BECAUSE EACH ONE OF THOSE 45 GOES THROUGH A PRESOLICITATION VERSUS A POST SOLICITATION BY CHANGING THE PROCESS TO 5 MILLION AND FOCUSING JUST ON THOSE HIGHLY -- HIGH, HIGH PROFILE, IT REDUCES FROM ABOUT A FOCUS OF 387 TO 308 MILLION, ROUGHLY 21 CONTRACTS, 40 SOMETHING PRESENTATIONS.

SO I THINK IT CENTRALIZES THE FOCUS ON THOSE TRULY HIGH-PROFILE CONTRACTS AND LETS THE COMMITTEE FOCUS ON THOSE VERSUS THE ONES THAT ARE ROUTINE IN NATURE.

THE NEXT AREA FOR DISCUSSION IS GOING TO BE THE LIVING WAGE.

AS I MENTIONED LAST TIME, THE LIVING WAGE WAS INTRODUCED BY COUNCILMAN SALDAÑA THROUGH HIS CCR, AND THAT CCR JUST ON -- IT, POINTS FOR THE EMPLOYEE COMPENSATION PACKET OFFERED BY CONTRACTORS AND REQUESTED THIS BE APPLICABLE TO CONTRACTS, LEASES, P3 PARTNERSHIP WHERE CITY, LAND OR TAX DOLLARS ARE INVOLVED.

WE STUDIED THIS -- CONTRACT, WED AT INTRODUCING THAT INTO OUR EVALUATIONS, AND WE ALSO LOOKED AT INTRODUCING THAT AND CONSIDERING THAT AS PART OF OUR PROPOSED PLAN.

WE ANALYZED THE GOVERNING LAW, AND ONE OF THE -- AUDIO] -- THINGS PART OF THE SLEK HUNDRED CRITERIA, YOU MUST HAVE CLEAR LEGISLATIVE AUTHORITY TO DO SO.

IF YOU DON'T HAVE CLEAR LEGISLATIVE AUTHORITY TO DO SO, THEN THE SECOND CRITERIA HAS TO BE DIRECTLY -- AUDIO] -- THAT SECOND POINT HAS BEEN ASKED BY SEVERAL CITIES THROUGH THE ATTORNEY GENERAL, AND THE ATTORNEY GENERAL HAS NOT EXPRESSED AN OPINION ON THAT BECAUSE IT'S MORE OF A MATTER OF FACT THAN SOMETHING THEY CAN EXPRESS AN OPINION ON.

AND LOOKING AT OTHER CITIES, THERE REALLY ISN'T A CLEAR BEST PRACTICE AS FAR AS WHAT THEY DO.

JUST TO GIVE YOU SOME EXAMPLES: DALLAS HAS A MINIMAL LIVING WAGE, VERY LIMITED IN SCOPE TO NONPROFESSIONAL CONTRACTS OVER $50,000 AND THEY'RE TIED TO THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY WAGE CALCULATOR, SO IT'S A VERY LOW LIVING WAGE, ABOUT $11 AN HOUR.

HOUSTON, DOES NOT CONSIDER A LIVING WAGE, BUT THEY ACTUALLY CONSIDERED BENEFITS, SO THERE IS NO PREFERENCE OR ANY WEIGHT ON A LIVING WAGE.

AUSTIN IS VERY LIMITED AS WELL, THEY DO APPLY A LIVING WAGE OF $14 FOR THEIR CONTRACTS, BUT IT'S BASED ON ESSENTIALLY NONPROFESSIONAL CONTRACTS, IT'S LIMITED TO ANY CONTRACTS THAT ARE DONE ON CITY FACILITIES OR CITY VEHICLES, AND SO THEY KIND OF SEPARATE OUT AND ISOLATE THE LIVING WAGE TO EMPLOYEES FOR CONTRACTORS THAT ARE WORKING ON ACTUAL -- THE FACILITIES OR THE ACTUAL -- THEIR VEHICLES.

IN LOOKING AT THIS AND TAKING EVERYTHING INTO CONSIDERATION, OUR RECOMMENDATION IS TO APPLY THIS TO CONTRACTS OVER $50,000, IT WOULD BE APPLICABLE TO OUR SERVICE CONTRACTS AND WE'D TIE THOSE TO SERVICE CONTRACTS THAT REALLY HAVE A SERVICE COMPONENT OF 20% OR MORE.

IT'S SIMILAR TO WHAT WE DO FROM A PROCESSING THE SAME PRACTICE IN SBEDA.

IT WOULD BE APPLICABLE TO THE RSCFPSS, OUR PUBLIC/PRIVATE PARTNERSHIP [INDISCERNIBLE] AGREEMENTS, IT WOULD NOT BE APPLICABLE TO CONSTRUCTION CONTRACTS BECAUSE WE INTRODUCE AND USE THE PREVAILING WAGE IN THOSE CONTRACTS, NOR WOULD IT BE APPLICABLE TO PROFESSIONAL SERVICE CONTRACTS BECAUSE THOSE ARE PURELY BASED ON QUALIFICATIONS.

AND THAT'S THE ONLY THING WE CAN REALLY CONSIDER.

SO WHAT WE'RE PROPOSING IS A PART OF OUR EVALUATION MATRIX AND THE EXAMPLES HERE TODAY, WE HAVE OUR EXPERIENCED BACKGROUND QUALIFICATIONS WHICH WE WOULD CONTINUE.

UNDER THE PROPOSED PLAN, WE WOULD REQUEST FROM EVERY VENDOR TO TELL US WHAT THEIR PAYING THEIR EMPLOYEES, THE CLASSIFICATIONS -- AUDIO] -- THAT WOULD BE PROVIDED TO OUR EVALUATORS TO ACTUALLY DETERMINE IF THAT CONTRIBUTES TO THE QUALITY -- OR THE COMPETENCE OF THE ACTUAL VENDOR AND THE GOODS OR THE SERVICES THEY PROVIDE.

IN DOING THAT, YOU'D RUN THROUGH THE NORMAL COURSE OF THE EVALUATION.

IN THE EVENT THAT COUNCIL HAD QUESTIONS, WE WOULD HAVE THAT

[00:25:01]

INFORMATION AVAILABLE.

ONE OF THE CHALLENGES, I THINK, IN LOOKING AT BENEFITS AND WAGES IS THAT IT TENDS TO BE A BALANCING ACT WITH COMPANIES BETWEEN WHAT THEY PAY AND THE BENEFITS THEY PROVIDE.

IT'S VERY HARD FOR US TO QUANTIFY THROUGH EVALUATION PREFERENCE POINTS WHAT THE VALUE OF THAT COMPENSATION IS, WHAT THE VALUE OF THOSE BENEFIT PLANS ARE, BECAUSE THERE ARE SO MANY VARIETIES OUT THERE.

AND THAT TOTAL COMPENSATION AND THE BENEFITS ACTUALLY COMPLIMENTS THE WAGE THEY PAY.

FOR EXAMPLE, OUT-OF-POCKET PREMIUMS COULD BE DIFFERENT, THE BENEFITS PROVIDED COULD BE DIFFERENT.

DEDUCTIBLES COULD BE DIFFERENT UNDER A BENEFIT PAN, AND IT -- PLAN, AND IT ALMOST WOULD TAKE AN ACTUARIAL ANALYSIS TO DETERMINE THAT.

IT MAKES IT VERY DIFFICULT WHEN LOOKING AT COMPENSATION TO APPLY THAT TO A POINT PREFERENCE PROGRAM OR A MINIMUM.

AND THAT'S WHY WE'RE -- WE'RE MOVING -- OR RECOMMENDING THIS TO YOU FOR CONSIDERATION.

ABOUT TWO TO THREE WEEKS AGO, WE MET WITH COUNCILMAN PELAEZ, WHO INTRODUCED THE RESPONSIBLE BIDDER PROGRAM TO US.

WE HAVE BEEN AGGRESSIVELY LOOKING A THAT AND DETERMINING WHAT OTHER CITIES DO.

THIS WAS INTRODUCED BY, I BELIEVE, IBEW, OR THE -- -- THE FIRST QUESTION IS WHAT IS A RESPONSIBLE BIDDER? AND WHAT WE FOUND OUT IS THAT IT REALLY VARIES ACROSS CITY.

THERE REALLY IS NOT A BEST PRACTICE.

THERE ARE SOME COMMON THEMES.

BUT THE COMMON THEME IS THAT PRIMARILY FOCUSES ON PUBLIC WORKS, IT DOESN'T MEAN THAT CAN BE INTERPRETED OR PROVIDED MUCH BROADER FOR OTHER CONTRACTS, BUT WHAT WE SAW WAS PRIMARILY IN THE AREA OF PUBLIC WORKS.

ESSENTIALLY ENSURES THAT CITY AWARDS TO RESPONSIBLE CONTRACTORS PROVIDE THE HIGHEST QUALITY WORK, EFFICIENTLY, SAFELY, ON TIME AND ON BUDGET.

STATUTE GIVES US SOME GUIDANCE IN THIS AREA.

IT'S VERY GENERAL.

WE TAKE THAT GUIDANCE AND WE BASICALLY ESTABLISHED OUR RESPONSIBLE BIDDER PROGRAM.

BUT BASICALLY UNDER STATUTE, IT DEFINES -- IN ORDER TO DO THIS, WE HAVE A NUMBER OF PROCESSES IN PLACE THROUGH OUR DUE DILIGENCE EFFORT TO BOTH TCI CONDUCT THIS ON THEIR PROCUREMENTS AS WELL AS FINANCE.

AND ESSENTIALLY, I KNOW THIS IS HARD TO READ, BUT ESSENTIALLY AT THE VERY TOP, ALL OUR BIDDERS MUST REGISTER IN OUR CENTRALIZED VENDOR REGISTRY.

WE VERIFY IF THERE'S ANY ACCOUNTS RECEIVABLES OWED TO THE CITY.

IF THERE'S ANY PROPERTY TAX OR LIENS, ANY OUTSTANDING PERMIT FEES IN THE DEVELOPMENT SERVICE DEPARTMENT.

WE LOOK AT THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS.

[INDISCERNIBLE] WE LOOK AT THE TEXAS SECRETARY OF STATE AND THEIR LICENSING, THE U.S.

GENERAL SERVICES ADMINISTRATION FOR AWARD MANAGEMENT, AND THAT'S KIND OF THE FOUNDATION THAT WE DO ON EVERY PROCUREMENT.

ABOVE AND BEYOND THAT, WE DO ADDITIONAL DUE DILIGENCE, DEPENDING ON THE TYPE OF THE PROCUREMENT IT IS.

WE DO SEARCHES, WE CONDUCT REFERENCES, WE LOOK AT THEIR FINANCIAL STABILITY AS FAR AS THEIR AUDITED FINANCIAL STATEMENTS, DUNN AND BRAD STREETS.

IN SOME CASES WE WILL CONDUCT SITE VITS OF THE ORGANIZATIONS MAKING SURE THEIR FACILITIES ARE UP TO STANDARD.

WE TAKE TESTING -- WE GET SAMPLES OF THE GOODS THAT THEY PROVIDE AND WE TEST THOSE PRODUCTS.

VALIDATE THE LICENSE PERMITS, AND ALSO IF THEY'RE NOT PERFORMING, THERE'S AN ADMINISTRATIVE PROCESS THAT WE GO THROUGH TO ALLOW THEM TO CURE NONPERFORMANCE.

AT THE END OF THE DAY, IF THEY'RE NOT PERFORMING WE WILL TERMINATE THE CONTRACT, TAKE [INDISCERNIBLE] OF THAT AND THEY WILL NOT BE A RESPONSIBLE BIDDER ON THE FUTURE PROCUREMENTS.

ADDITIONAL CONTRACT PROTECTIONS ARE THE BONDING LETTERS OF CREDIT, AND WE'RE ALSO LOOKING AT INTRODUCING A NEW -- NEW REQUIREMENT OR DUE DILIGENCE TO GO OUT THROUGH A SERVICE, HAVE THEM CONDUCT SOME OF THIS DUE DILIGENCE FOR US TO SEE IF THERE'S ANYTHING OUT THERE THEY CAN IDENTIFY.

SOME OF THE THINGS THAT WE CURRENTLY DON'T CONSIDER AS FAR AS OUR RESPONSIBLE BIDDER, AND THIS WOULDN'T NECESSARILY TAKE AN ORDINANCE, BUT WE COULD LOOK AT ANY OF THESE TOGETHER OR INDIVIDUALLY AND MODIFY OUR CONTRACTING PRACTICES OR OUR ACTUAL SOLICITATIONS, BUT SOME OF THE THINGS THAT WERE -- WE TALKED ABOUT WITH COUNCILMAN PELAEZ WERE PARTICIPATION IN APPRENTICESHIP PROGRAM, DISCLOSURE OF ANY JUDGMENTS RELATED TO ANY WORKERS' COMPENSATION CLAIM, COMPLIANCE

[00:30:02]

WITH OSHA REQUIREMENTS, ENCOURAGE THEM TO PARTICIPATE IN TRAINING PROGRAMS SUCH AS SEXUAL HARASSMENT, WORKPLACE VIOLENCE AND DIVERSITY AND ALSO CONSIDER DEBARMENT PROGRAM AS WELL.

ONE OF THE THINGS I'D RECOMMEND IS WE CONTINUE TO LOOK AT THIS AND GET YOUR FEEDBACK IF THERE'S ANY OF THOSE ADDITIONAL ITEMS THAT YOU WOULD LIKE US TO CONSIDER.

BUT AT A MINIMUM, CONTINUE OVER $50,000 TO CONDUCT OUR DUE DILIGENCE AND CONDUCT THIS AS A PRIME CONTRACTOR LEVEL.

AS I MENTIONED IF THERE'S ANYTHING ADDITIONALLY THAT WE TALKED ABOUT ON THE PRIOR SLIDE THAT YOU'D LIKE US TO FOCUS ON, WE CAN SPECIFICALLY FOCUS ON THAT AND MODIFY OUR CRATS AND OUR SOLICITATIONS FOR THAT.

IN SUMMARY, IN ALL THESE DIFFERENT AREAS, JUST TO SUMMARIZE, UNDER THE LOCAL PREFERENCE PROGRAM, WE WOULD RECOMMEND MAINTAINING THE GEOGRAPHIC BOUNDARIES.

INCREASING THE PREFERENCE FROM D CONTRACTS, EXCLUDING FEDERAL AND STATE LOBBYING SERVICES, AND UNDER THE VETERAN-OWNED SMALL BUSINESS PROGRAM, MAINTAINING THE CURRENT FIVE POINT VETERAN PREFERENCE AND EXPANDING THAT TO INCLUDE SERVICE-DISABLED VETERANS AT ANOTHER FIVE POINTS.

WE WOULD ALSO RECOMMEND CONSIDERATION OF A 25-POINT CAP OF OUR PREFERENCE PROGRAMS THAT ARE CURRENTLY WORTH IN TOTAL ABOUT 40 POINTS AND THEN LEGISLATIVE ACTION TO EXPAND THE USE OF OUR LOCAL AND VETERAN'S PROGRAMS TO OTHER AREAS WHERE THEY'RE CURRENTLY PROHIBITED.

UNDER THE HIGH-PROFILE PROCESS, CONTINUE THE COMMITTEE REVIEW OF CONTRACTS OVER $5 MILLION OR INCREASE -- INCREASE THAT TO $5 MILLION AND EXCLUDE ON-CALL JOB CONTRACTING.

UNDER LIVING WAGES, CONSIDER IT AS PART OF OUR PROPOSED PLAN, OUR EVALUATION MATRIXES AND ONLY APPLY TO CONTRACTS GREATER THAN 50,000, AND IN SUMMARIZING WITH RESPONSIBLE BIDDER PROGRAM, CONTINUE WHAT WE DO TODAY AND GET GUIDANCE FROM Y'ALL IF THERE'S ANY SPECIFIC AREAS THAT YOU'D LIKE US TO FOCUS ON WE MENTIONED AS FAR AS INCLUDING IN OUR CONTRACTING AND OUR SOLICITATIONS.

THIS WAS A LITTLE BIT BRIEFER THAN LAST WEEK, BUT TO CONCLUDE WITH NEXT STEPS, AFTER GETTING FEEDBACK FROM Y'ALL -- AUDIO] -- COMMERCE, OUR SBAC COMMITTEE, VARIOUS ORGANIZATIONS INCLUDING THE UNIONS AND ALSO OUR -- BRINGING OUR VENDORS IN AND HAVE DISCUSSIONS WITH THEM AND VENDOR-FOCUS GROUPS, BOUNCING THESE IDEAS OFF THEM AND GETTING THEIR FEEDBACK.

MAYOR, THAT CONCLUDES OUR PRESENTATION AND WE'D BE HAPPY TO ANSWER ANY QUESTIONS YOU HAVE

>> MAYOR NIRENBERG: ALL RIGHT.

THANK YOU VERY MUCH, TROY, FOR THE PRESENTATION.

I THINK WE WENT AROUND THE WORLD IN HALF A SECOND.

A LOT TO ABSORB THERE.

PARTICULARLY AS IT RELATES TO LOCAL PREFERENCE PROGRAM, AND I APPRECIATE THE ENHANCEMENTS THAT YOU'VE RECOMMENDED THERE, AND THOSE SEEM LIKE FAIRLY SAFE, NO-BRAINERS TO ME, IN TERMS OF ENHANCING LOCAL PREFERENCE.

THE CRITICAL PART FOR ME, THOUGH, IS THIS LAST SLIDE ON NEXT STEPS.

WHAT -- SO WHAT ARE WE -- WHAT IS THE PROCESS NOW FOR UPDATING PROCUREMENT PREFERENCE PROGRAMS ONCE WE GO THROUGH STAKEHOLDERS AND -- AND I WOULD SAY THAT THERE'S A COUPLE STAKEHOLDERS NOT ON THIS LIST.

ONE OF THEM BEING THE PUBLIC.

I MEAN, I DO THINK WE NEED TO HAVE, YOU KNOW, THE PUBLIC WHO IS AFFECTED BY THE PROJECTS THAT ARE BEING PERFORMED UNDER THESE PROGRAMS AS A VOICE AT THE TABLE.

BUT IN TERMS OF HOW WE GO ABOUT THIS PROCEDURALLY, WHAT'S THE PROCESS?

>> SCULLEY: MAYOR, WHAT WE WOULD RECOMMEND IS THAT WE TALK WITH THESE GROUPS AND WE'LL ADD A PUBLIC FORUM AS WELL, OR TWO, MAYBE WE HAVE A COUPLE OF THOSE.

THEN WE CAN EITHER COME BACK TO A B SESSION WITH REFINED RECOMMENDATIONS FOR YOUR CONSIDERATION, OR COME DIRECTLY TO AN A SESSION FOR ACTION WITH THOSE SPECIFIC RECOMMENDATIONS.

SO WE'LL DO THIS OVER THE NEXT 60 DAYS, AND THEN COME BACK TO YOU CERTAINLY BEFORE YOUR SUMMER BREAK WITH RECOMMENDATIONS SO THAT THOSE COULD BE IMPLEMENTED FOR OUR FUTURE PROJECTS FOR THE BALANCE OF THIS CALENDAR YEAR.

>> MAYOR NIRENBERG: OKAY.

AND SO DOES THAT -- DO ANY OF THESE CHANGES HAVE THE POTENTIAL OF AFFECTING THE BOND PROGRAMMING THAT WAS ALREADY -- THAT WAS JUST VOTED ON IN MAY?

>> NO, SIR.

>> MAYOR NIRENBERG: BECAUSE THE ONLY CONSIDERATION THERE IS THAT IF IT DOES CHANGE THE COST FIGURES, THEN WE WANT TO -- CERTAINLY WANT TO STAY FAITHFUL TO THE PROGRAM THAT WE PUT IN FRONT OF VOTERS.

WELL, THERE'S A LOT IN HERE, INCLUDING BOTH THE RESPONSIBLE BIDDERS' PROGRAM THAT COUNCILMAN PELAEZ PUT FORWARD AS WELL AS THE LIVING WAGE CONSIDERATION

[00:35:01]

THAT COUNCILMAN SALDAÑA PUT FORWARD AS WELL, SO I WANT TO HEAR MY COLLEAGUES' COMMENTS ON THOSE, AND WE'LL START WITH COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU, MAYOR.

GOOD PRESENTATION, THANK YOU FOR PUTTING ALL THE HARD WORK INTO COMPILING THIS DATA FOR US, AND THANK YOU TO EVERYBODY WHO SHOWED UP TODAY.

CLEARLY, IT'S IMPORTANT TO A LOT OF DIFFERENT STAKEHOLDERS.

MY QUESTION IS, WITH REGARDS TO THE RESPONSIBLE BIDDER PROGRAM, IF I LOOK AT YOUR DUE DILIGENCE, SO THIS IS SLIDE 31, WHERE IT SAYS CURRENT DUE DILIGENCE, WHAT IS THE INTERNET SEARCH ENTAIL? WHAT IS IT YOU'RE LOOKING FOR?

>> ELLIOT: WE ESSENTIALLY GO THROUGH AND DO SEARCHES ACROSS THE INTERNET, THROUGH GOOGLE, LOOKING FOR ANY TYPE OF MEDIA THAT MAY BE POSITIVE OR NEGATIVE.

>> PELAEZ: OKAY.

>> ELLIOTT: AND WE CATEGORIZE THAT AND WE BASICALLY PRESENT THAT TO THE EVALUATION COMMITTEE FOR THEIR CONSIDERATION.

>> PELAEZ: OKAY.

SO HYPOTHETICALLY SPEAKING, RIGHT, LET'S SAY CRUZ SHAW AND I ARE SERVING PRISON TIME, RIGHT, IN A FEDERAL PRISON IN LOUISIANA OR SOMETHING, RIGHT, FOR FRAUD -- CRIMINAL FRAUD AND WE'VE ALSO BEEN SUED MULTIPLE TIMES FOR CIVIL FRAUD [LAUGHTER] ABOUT IT, BUT A FEW YEARS LATER WE START A NEW COMPANY AND WE'RE DOING MAJOR CONSTRUCTION PROJECTS, WOULD ANY OF YOUR SEARCHES CATCH THAT?

>> OUR SEARCHES IN THE PAST HAVE CAUGHT SOME OF THAT, BUT IT WOULD NOT BE 100% CERTAINTY THAT WE WOULD CATCH IT.

>> PELAEZ: SO WE DON'T PUT PRIME OR PRINCIPLES OR ANYTHING THROUGH A CRIMINAL BACKGROUND CHECK.

>> SCULLEY: MAY I? DEPENDING ON THE PROJECT, ON EVERY SINGLE CONTRACT WE DON'T, BUT WE HAVE DONE EXTENSIVE INVESTIGATIONS ON MAJOR HIGH-PROFILE PROJECTS IN THE PAST WHERE WE ACTUALLY HIRE A THIRD PARTY TO DO THE INVESTIGATION TO DETERMINE HOWLY TIJOUS THAT JOINT -- HOW HOW LITIGOUS THAT JOINT VENTURE MIGHT BE OR DO THEY HAVE ANY TYPE OF CRIMINAL PAST.

ON THE HIGH-PROFILE, YES, WE HAVE DONE THAT, BUT WE DON'T DO IT ON EVERY SINGLE ONE OF THEM BUT FOR A MORE STANDARD BACKGROUND CHECK.

>> PELAEZ: OKAY.

SO

>> PELAEZ: I KNOW THAT LOCAL COMPANIES WILL PAY 25 BUCKS TO DO A BACKGROUND CHECK ON AN INDIVIDUAL, IS THERE A WORRY ON ANYBODY'S MIND HERE ABOUT DOING THE SAME THING FOR THE PRINCIPLES OF OUR CONTRACTORS FOR LOW AND FOR HIGH-BID PROJECTS?

>> ELLIOTT: I'M NOT SURE THERE'S A WORRY.

I MEAN, WE CAN EXPLORE THAT FURTHER.

>>

>> SCULLEY: OUR ATTORNEY SAID IT'S NOT A LEGAL PROBLEM AS LONG AS THEY CONSENT.

IF THEY DON'T CONSENT, I COULD CONSIDER THAT A PROBLEM.

>> PELAEZ: YEAH, RIGHT, WHICH IS SORT OF LIKE -- YOU KNOW, IF YOU WANT TO BID ON OUR PROJECTS, CHECK THIS BOX AND WE GET TO LOOK AT YOUR BACKGROUND, RIGHT? THAT'S THE KIND OF STUFF I WANT TO CATCH, RIGHT? I MEAN, THERE'S PLENTY OF BAD ACTORS OUT THERE IN ALL INDUSTRIES AND I JUST WANT TO MAKE SURE THAT WE DON'T DO BUSINESS WITH ANY OF THE ONES WHO'VE PROVEN TO BE BAD.

THE SECOND THING IS, YOU KNOW, ALONG BACKGROUND CHECKS, IT DOESN'T -- WHEN YOU DO INEXPENSIVE BACKGROUND CHECKS, I MEAN, CRUZ AND I CAN DO THEM IN MINUTES USING WESTLAW, WE CAN FIND OUT ABOUT PEEP EL'S LITIGATION HISTORY, BANKRUPTCY FILINGS, IT'S VERY INEXPENSIVE, I MEAN, 10S OF DOLLARS IN MANY INSTANCES I'D ENCOURAGE YOU TO LOOK AT THAT AS WELL AS PART OF THE DUE DILIGENCE.

>> ELLIOTT: ON THE HIGH-PROFILES, WE DO DO SOME OF THAT, ON DUNN AND BRAD STREETS, THEY DISCLOSE [INDISCERNIBLE] BANKRUPTCIES.

SO WE DO USE THEM FOR THAT.

>> PELAEZ: GREAT.

MY CONCERN IS IF WE APPLY THIS RESPONSIBLE BIDDER, YOU KNOW, IDEA TO PEOPLE WHO ARE DOING BUSINESS WITH US ABOVE A CERTAIN THRESHOLD, YOU SAID 50K, RIGHT?

>> UH-HUH.

>> PELAEZ: AND THAT WE ONLY APPLY IT TO PRIME, THAT MEANS THAT WE'LL GET SOMEBODY WITH A VERY, VERY CLEAN BACKGROUND AND SOMEBODY WHO ACCEPTS, YOU KNOW, THESE PRINCIPLES OF SOMETHING THEY'LL BE LIVING BY, BUT THEY CAN BRING IN A SUBTO DO THE ENTIRETY OF THE WORK AND NOT LIVE BY A SINGLE ONE OF THESE PRINCIPLES, AND WE'D HAVE A RESPONSIBLE BIDDER PROGRAM IN NAME ONLY, RIGHT?

>> ELLIOTT: SO ARE YOU TALKING ABOUT APPLYING THAT RESPONSIBLE BIDDER TO A PRIME AND FIRST AND SECOND-TIER SUBCONTRACTORS?

>> PELAEZ: YES.

UNDER MY HYPOTHETICAL WE'D HAVE

[00:40:01]

A RESPONSIBLE BIDDER PROGRAM IN NAME ONLY.

>> IF WE'RE JUST APPLYING TO THE PRIME.

>> PELAEZ: RIGHT.

I THINK THAT EVERYBODY ON THE CITY COUNCIL HAS SAID THE WORD AUTHENTICITY A NUMBER OF TIMES, AND SO I WOULD CHALLENGE THE -- THAT, YOU KNOW, SOMEHOW WE'D HAVE A ROBUST RESPONSIBLE BIDDER PROGRAM BACKED BY AUTHENTICITY IF WE'RE ALLOWING PEOPLE JUST TO SORT OF WIGGLE OUT FROM UNDER IT IF IT'S JUST PRIMES WHO BRING IN SUBS.

AND SO WITH THAT, THAT'S MY ONLY -- THOSE ARE MY ONLY CONCERNS.

THANK YOU FOR TAKING US SERIOUSLY AND THANK YOU FOR LOOKING INTO IT.

I THINK WHETHER YOU'RE PROLABOR OR ANTILABOR OR WHATEVER, OR PRO BUSINESS, I DON'T THINK THEY'RE BINARY CHOICES, BUT I DO THINK THAT, YOU KNOW, EVERYBODY IS PRO SENDING OUR MONEYWISELY, -- MONEY WISELY AND MAKING SURE WE DO BUSINESS WITH RESPONSIBLE PEOPLE.

AND THAT LOW COST CERTAINLY SOUNDS INTERESTING BUT LOW COST AT THE COST OF PEOPLE'S SAFETY AND AT THE COST OF FOLKS NOT GETTING, YOU KNOW, PROFESSIONAL DEVELOPMENT LIKE APPRENTICESHIPS AND ALL THAT, YOU KNOW, LOW COST MAY NOT BE GOOD ENOUGH, RIGHT? AND GOOD ENOUGH IS NOT GREAT.

SO THANK YOU.

>> THE ONE ITEM I WOULD POINT OUT, BECAUSE I RECENTLY HAD DISCUSSION AT THE AUDIT ACCOUNTABILITY COMMITTEE AS FAR AS THE SAME TYPE DISCUSSION AROUND FELONIES AND THINGS OF THAT NATURE, OUR CONTRACTING -- OR THE MAJORITY OF OUR CONTRACTING HAS AN APPLICATION OR PROVISION IN THERE THAT HAS A THREE-YEAR REQUIREMENT, AND SO IF YOU'VE HAD A FELONY OR A CRIME OF MORAL TURPITUDE WITHIN THREE YEARS THEN YOU'RE PREVENTED FROM BIDDING ON OUR -- OR BEING AWARDED A CONTRACT.

IF OUTSIDE OF THAT THREE YEARS, THEN YOU BECOME ELIGIBLE TO ACTUALLY COMPETE FOR CITY BUSINESS.

AND THAT WAS SOMETHING THAT'S EVOLVED OVER TIME.

MORE OF A SECOND-CHANCE TYPE OPPORTUNITY, SO I JUST WANTED YOU TO BE AWARE THAT SOME OF OUR CONTRACTING PRACTICES CURRENTLY.

>> PELAEZ: SO THAT INCLUDES SORT OF ANY CRIMES OF MORAL TURPITUDE WILL NOT BE CONSIDERED AND WON'T GET --

>> FOR THREE YEARS FOR FELONY AND CRIMES OF MORAL TURPITUDE.

AND OUTSIDE THAT THREE-YEAR REQUIREMENT, THEN YOU CAN COMPETE FOR CITY BUSINESS.

>> PELAEZ: SHERYL, WHAT'S THE STANDARD OF CITY EMPLOYEES? DO WE ACCEPT ANYBODY WITH CRIMES OF MORAL TURPITUDE TO WORK FOR US?

>> SCULLEY: WE FOLLOW THE FEDERAL GUIDELINES AND AT THE INITIATION FROM THE COUNCIL A FEW YEARS AGO, CITY COUNCILMAN SALDAÑA, HAD, I BELIEVE, RECOMMENDED -- AUDIO] -- EVALUATE WITHOUT KNOWING THE BACKGROUND, BUT THEN AFTER SOMEONE IS SELECTED, THEN WE DO THE BACKGROUND CHECK.

>> PELAEZ: RIGHT.

>> SCULLEY: AND IT WAS TO -- WE GET SO MANY APPLICATIONS FOR POSITIONS, WE DIDN'T WANT PEOPLE RULED OUT BECAUSE FIVE YEARS AGO THEY MAY HAVE HAD A CONVICTION, BUT HAVE HAD A GOOD RECORD SINCE THEN.

>> PELAEZ: RIGHT.

>> SCULLEY: THEN WE FOLLOW THE GUIDELINES FOR POSITION.

OBVIOUSLY, SOMEONE WHO'S BEEN CONVICTED OF EMBEZZLEMENT IS NOT GOING TO BE IN ANY KIND OF FINANCIAL POSITION FOR THE CITY.

>> PELAEZ: RIGHT.

>> SCULLEY: SO THERE MAY BE SOMEONE WHO HAD SOME OTHER TYPE OF CONVICTION, LET'S SAY A SITUATION THAT IT WOULD BE OKAY IF THEY WERE WORKING IN THE PARKS MAINTENANCE AREA, FOR EXAMPLE, SO WE EVALUATE WHAT THE CRIME WAS AND THEN EVALUATE IF THEY CAN SERVE IN THAT POSITION.

>> PELAEZ: OKAY.

THANK YOU.

>> SCULLEY: UH-HUH.

>> MAYOR NIRENBERG: GREAT, THANK YOU, COUNCILMAN PELAEZ.

COUNCILMAN BROCKHOUSE.

>> BROCKHOUSE: THANK YOU, MAYOR.

THANK YOU, TROY, FOR THE PRESENTATION.

IT WAS VERY GOOD.

I DO APPRECIATE THE WORK OF THE STAFF, THANK YOU.

SO THESE ARE HEAVY HITTING POLICY ITEMS THAT DICTATE, YOU KNOW, WHAT TYPE OF CITY WE'RE GOING TO BE AND WHAT TYPE OF BUSINESS AND WAGES AND THINGS WE'RE ENCOURAGING THROUGH OUR POLICIES, RIGHT? SO I DO HAVE A COUPLE OF INITIAL CONCERNS.

ONE IS, THAT THERE'S ALREADY A LOT OF BAKED RECOMMENDATIONS HERE.

AND I THINK THE LACK OF INCLUSION TO THIS POINT, THAT WE NEED TO WORK ON THAT.

THE CITY COUNCIL'S THE POLICY BODY.

THIS IS WHERE IT BEGINS.

TO HAVE RECOMMENDATIONS ON THINGS LIKE RESPONSIBLE BIDDERS AND LIVING WAGES AND NOT HAVING BEEN CONSULTED VERY THOROUGHLY, WE SET THE PARAMETERS, YOU EXECUTE THE STRATEGY.

IT'S LIKE YOU BUILD THE BALL FIELD AND YOU'RE LAYING OUT THE FIELD AND YOU'RE CHALKING THE STRIPES, AND I COME OUT AND I HAVE TO PLAY ON YOUR FIELD AND YOUR RECOMMENDATIONS.

NOW, I CAN MOVE AROUND AND MAKE CHANGES AND DO DIFFERENT THINGS.

THE ONE BIG CONCERN I HAVE IS WE'RE NOT REALLY -- THE FIRST TIME I HEARD ABOUT RESPONSIBLE BIDDER WAS LAST WEEK AND HERE WE ARE WITH RECOMMENDATIONS, AND MANY PEOPLE IN THE ROOM, NOT PART OF THE CONVERSATION.

THAT IS A CONCERN.

WHETHER -- I GET YOU HAD SOME DIRECTION, YOU WENT OUT, OBVIOUSLY DIRECTION FROM A COUNCILMEMBER -- OTHER COUNCILMEMBERS, I DON'T KNOW, BECAUSE THERE WAS NOTHING FROM ME, SO I DON'T KNOW WHO ELSE CREATED THE RESPONSIBLE BIDDER ORDINANCE PUSH, BUT YOU WENT OUT

[00:45:02]

AND YOU'RE BAKING IDEAS AND POLICY.

IT NEEDS TO COME FROM US.

AND I THINK WE SHOULD ALL BE A PART OF HOW WE FEEL SOMEWHAT ABOUT THE POLICY ABOUT LIVING WAGES, ABOUT WAGE DISCLOSURE, ABOUT RESPONSIBLE BIDDING, STUFF LIKE THAT.

SO THAT'S ONE CONCERN I HAVE.

THE OTHER THING IS GREATER INCLUSION BEFORE YOU COME UP WITH A SET OF POLICY RECOMMENDATIONS, EVEN THOUGH THEY'RE FLEXIBLE AND FLUID AND WE'RE ABLE TO CHEW THEM UP, BUT THE FACT WE'RE HAVING THIS CONVERSATION AT A B SESSION WHICH IS ONE STEP AWAY FROM AN A SESSION WITH A VOTE, I THINK WE NEED TO SLOW THIS THING DOWN AND TAKE PATIENCE PIECE BY PIECE ON EF REWIN OF THESE -- EVERY ONE OF THESE ITEMS. THE MAYOR USED WORDS LAST WEEK ABOUT BAKING OUR VALUES INTO THESE THINGS.

WELL, THERE'S MULTIPLE VALUES SITTING AT THE TABLE, AND WE HAVE TO BE SURE THAT THERE'S TIME AND PATIENCE AND SOLICITATION OF IDEAS AND THOUGHTS AND PEOPLE IN OUR COMMUNITY SHOULD BE NOTIFIED THE LAST COUPLE OF DAYS TO SHOW UP BECAUSE WE MAY BE POTENTIALLY AFFECTING THEIR FINANCIAL VIABILITY BOTH AS A LABOR UNION, A BUSINESS COMMUNITY AND AS A RESIDENT.

THAT'S CONCERNED 1.

CONCERNED 2 IS NOWHERE IN ANY PRESENTATION HAVE I SEEN THE ACTUAL COST OF OUR POLICIES, LIKE WHAT THOSE COSTS LOOK LIKE? LIKE WHAT IS THE COST AND IMPACT OF IMPLEMENTING A RESPONSIBLE BIDDER ORDINANCE.

WHAT'S THE IMPACT TO US HAVING TO HAVE A LABOR PEACE AGREEMENT.

SO YOU PRESENT ONE SIDE OF IT WITHOUT THE WHOLE PICTURE FOR US, RIGHT? AND THAT'S A CONCERN IN GENERAL THAT I THINK, YOU KNOW, I'VE HAD SINCE I TOOK OFFICE WHICH WAS WE DON'T THINK MUCH ABOUT THE LAWS WE PASS AND HOW THEY AFFECT THE BOTTOM LINE OF OUR RESIDENTS, RIGHT? THEIR CHECKING ACCOUNTS AND CHECK CHECKBOOKS, SO I'D ASK THAT WE FIND WAY, THE NEXT TIME YOU COME BACK BEFORE THE BODY, THAT YOU HAVE AN ANALYSIS OF WHAT THAT MEANS TO A BUSINESS.

YOU KNOW, WHAT'S THE COST GOING TO BE IF I HAVE TO IMPLEMENT THIS AGREEMENT HERE, IF I'M SAYING YOU HAVE TO HAVE THESE STEPS DONE AS A RESPONSIBLE BIDDER, AND RESPONSIBLE BIDDER IS VERY -- THE WORD TO ME, IS SUCH AN AMBIGUOUS NAME ANYWAY.

I'M DEALING WITH WHOEVER'S SITTING IN THESE CHAIRS IS DETERMINED WHO WILL BE SPONSOR NOT.

WE HAVE TO HAVE A SET OF CRITERIA THAT'S AN EVEN PLAYING FIELD.

I HAVE GREAT CONCERNS, TROY, THAT WE'RE OVERREGULATING SMALL BUSINESS THAT EVEN WANT TO NEED OR WANT TO DO BUSINESS WITH THE CITY OF SAN ANTONIO.

WE CAN MAKE IT SO HIGH THAT THE VOKS -- FOLKS THAT WANT TO HELP THAT ARE APPLYING ALL THESE FOLKS ACROSS OUR CITY, WE CAN PRICE EVERYBODY OUT OR OVERREGULATE THEM TO THE POINT THAT THEY DON'T WANT TO DO BUSINESS WITH US.

WORKING TOGETHER AND HAVING THOSE CONVERSATIONS AS A WHOLE, SO WE HAVE TO HAVE THE COST ASSOCIATED WITH THIS.

SEVERAL MONTHS BACK I -- YOU KNOW, TALKED WITH PEERS AND I DIDN'T GET FULL SUPPORT FOR A CCR, BUT I TALKED ABOUT WE NEED TO HAVE AN INDEPENDENT BUDGET ANALYSIS OF THIS, SOMEBODY THAT SITS ASIDE -- THAT LOOKS AT THESE THINGS AND SAYS HERE'S THE FISCAL SIDE, HERE'S THE IMPACT ON THE RESIDENT.

BECAUSE AT THE END OF THE DAY, THESE COSTS ARE GETTING PASSED ON AND EVERYTHING THAT WE ASK A BUSINESS TO DO, AND THERE'S ABSOLUTELY NO -- THERE'S NOTHING ABOUT HOW OUR POLICIES ARE AFFECTING RESIDENTS.

AND WE CAN'T DO THINGS IN A VACUUM.

AND YOU CAN SAY WELL, YOU HAVE TO HAVE BACKGROUND CHECKS HERE AND THESE TYPES OF THINGS AND MAKE SURE YOU'RE DOING THIS, THIS AND THIS, WE'RE INCREASING SOMEBODY'S WORKLOAD.

THAT'S TIME, THAT'S ENERGY, THERE'S A TIME FACTOR -- COST FACTOR, WHAT DO THOSE THINGS LOOK LIKE? AND SO I'D ASK THAT GOING FORWARD, THAT IF IT'S JUST FOR ME, IT'S JUST FOR ME, BUT I WOULD WANT TO KNOW WHAT ARE THE COSTS OF THE THINGS -- WHAT DOES A BUSINESS HAVE TO DO, RIGHT? AND THEN IS THERE -- IS THERE TRULY, RIGHT, A COST TO THE RESIDENT OR THE CONSUMER OR THE CUSTOMER ON THE OTHER SIDE? THOSE THINGS MATTER IN THE POLICIES THAT WE DO, AND THEY'RE OFTEN MISSED HERE AT THIS COUNCIL AT LEAST, WE DON'T THINK A LOT OF THAT.

WE PASS A LOT OF LAWS AND WE DO A LOT OF THINGS BECAUSE IT MAKES US FEEL GOOD, RIGHT? AND A LOT OF ITS SOCIAL REENGINEERING, AND SO BE IT.

THERE'S SIX VOTES TO GET IT, THERE'S SIX VOTES TO GET IT.

BUT WE HAVE TO BE VERY CAREFUL WHEN WE'RE USING OUR TAX DOLLARS AND TIME TO CREATE OR WRITE SOME SOCIAL INEQUITY.

WE HAVE TO BE DILIGENT IN ANALYTICS THERE TO GET US THERE.

IF WE CAN PLAY IN THAT ANALYTICS GAME, THAT REMOVES A LOT OF EMOTION FROM IT.

I WOULD REQUEST THAT WE SEE THOSE TYPE OF ANALYTICS SO I CAN MAKE A FAIR DECISION ON WHAT'S THE IMPACT OF A BUSINESS AND WHAT IS IT REALLY DRIVING THAT, FOR A RESIDENT, ARE THEY SEEING THAT LIVING WAGE, ARE WE WORKING IN THOSE AREAS THAT MATTER MOST.

I THINK WE HAVE TO GET THERE.

THE HIGH-PROFILE CONTRACT STUFF, WHAT HAPPENED TO EXPANDING THE TIME PERIOD SO COUNCILMEMBERS CAN BE INVOLVED IN THE DECISION-MAKING PROCESS AND LEARN MORE ABOUT CONTRACTS, IS THAT...

>> ELLIOTT: AFTER THE DISCUSSION LAST WEEK, WE HAVE NOT LOOKED AT THAT YET.

IT'S SOMETHING THAT WE'LL TAKE -- I GUESS BACKING UP A LITTLE BIT.

ONE OF THE PURPOSES OF THIS MEETING WAS TO ACTUALLY INTRODUCE TOPICS OR IDEAS FOR DISCUSSION, SO WE CAN ACTUALLY TAKE THAT BACK AND POTENTIALLY,

[00:50:02]

IF THE RECOMMENDATIONS WERE NOT FAVORABLE TO THE COUNCILMEMBERS, AND THERE WERE OTHER ITEMS, WE WOULD TAKE THOSE BACK AND ANALYZE THOSE AND PROVIDE YOU WITH THOSE FACTS AND THOSE FIGURES TO SUPPORT THOSE.

WHEN WE COME BACK TO YOU NEXT TIME, WE WOULD LOOK AT THE TIMELINE AS FAR AS IF THERE'S A NEED OR A WANT TO EXPAND THAT.

OUR CURRENT PROCESS, THE WAY IT'S LAID OUT IS THE EVALUATION COMMITTEE MAKES A PROFESSIONAL RECOMMENDATION, BASED ON ALL THE FACTS, AND WE PRESENT THAT TO COUNCIL.

IF THERE'S A WANT FOR ADDITIONAL TIME, WE WOULD LOOK AT THAT.

>> BROCKHOUSE: TWO COUNCILMEMBERS LAST WEEK ASKED YOU FOR A REVIEW OF THE POSSIBILITY OF EXPANDING THAT, SO YOU'RE SAYING AT THIS TIME, YOU'RE NOT --

>> ELLIOTT: AT THIS TIME I DON'T HAVE A RECOMMENDATION FOR YOU, NO.

>> BROCKHOUSE: I DO BELIEVE BASED ON SOME OF THE PAST CONTRACTS THAT WE NEED MORE TIME TO ACTIVELY ENGAGED.

IF SOMEBODY'S WORRIED ABOUT LOBBYISTS, OH WELL, THIS IS PART OF THE JOB WE DO.

SO I THINK WE SHOULD HAVE TIME FOR US TO DIG INTO THINGS.

SO, AGAIN, I WILL REQUEST THAT WE CONSIDER HOW WE CAN GIVE COUNCILMEMBERS TIME TO BE PART OF AN EVALUATION PROCESS.

WE'RE NOT HERE AS A RUBBER STAMP FOR STAFF.

SO I THINK WE NEED TIME.

AND WE NEED TO EXPAND THAT OPPORTUNITY.

ON THE LIVING WAGE PIECE, CAN YOU EXPLAIN -- ASK THE COUNCILMAN REAL QUICK ABOUT WHAT HIS GOAL WAS ON THE CCR FOR EXPANSION, THIS LIVING WAGE CONSIDERATION.

CAN YOU TELL ME WHAT STAFF CONSIDERS TO BE THE LIVING WAGE CONVERSATION FROM AN AMOUNT PERSPECTIVE OR WHAT YOU'RE LOOKING FOR IN THAT SCORING PIECE.

>> BROCKHOUSE: ACTUALLY WHAT WE'RE GOING TO ASK FROM EACH RESPONDENT, WHAT THEY PROPOSE TO PAY THEIR EMPLOYEES.

EACH DIFFERENT LEVEL OF EVERYBODY WORKING ON A CITY CONTRACT.

SO IF IT'S A JANITORIAL CONTRACT, ARE YOU GOING TO PAY THE INDIVIDUALS HERE ON THE FACILITIES, WORKING ON THE CONTRACT THAT ARE MANAGING THOSE PEOPLE AND WHAT ARE THEIR ASSOCIATED BENEFITS SO WE CAN LOOK AT THAT AND DOES THAT REALLY IMPACT THE QUALITY OF THE WORK.

YOU KNOW, HOW DOES THAT IMPACT THEIR PROPOSAL.

>> BROCKHOUSE: SO IN THE PROPOSED PLAN PORTION OF 25 POINTS, YOU'RE SAYING THAT A SCORER HAS A MAX 25 POINTS TO AWARD ON THAT PLAN.

>> NO, SIR.

>> BROCKHOUSE: HELP ME UNDERSTAND BECAUSE I'M NOT GETTING --

>> NO, WE ASKED FOR A LOT OF DIFFERENT INFORMATION.

>> BROCKHOUSE: OKAY.

>> SO DEPENDING ON A JANITORIAL CONTRACT, WE ASK THEM HOW DO YOU PLAN ON PROVIDING THE JANITORIAL SERVICES FOR THE CITY TO DO SO MANY CYCLES OF CLEANING? HOW MANY PEOPLE ARE YOU PROPOSING, AT WHAT COST? WHAT WOULD YOU PAY YOUR EMPLOYEES? IS, YOU KNOW, HOW ARE YOU GOING TO CLEAN THE FACILITY, WHAT PROJECTS -- PRODUCTS ARE YOU GOING TO USE, SO THAT WOULD ALL FALL UNDER -- AUDIO] --

>> BROCKHOUSE: BUT WHAT'S THE SCORING PORTION I GUESS IS WHAT I'M TRYING TO GET AT.

>> THERE WOULD BE NO POINTS -- IN THIS EXAMPLE, 25 POINTS, THERE WOULD BE NO POINTS ALLOCATED TO A WAGE AND BENEFITS.

IT COULD ALL BE PART OF THE CONSIDERATION OF THAT 25 POINTS.

>> BROCKHOUSE: THAT'S WHAT I'M ASKING.

SO I'M SITTING THERE SCORING, I SEE THEIR WAGE STRUCTURE, I CAN MANIPULATE THE 25 POINTS ANY WAY I SEE FIT BASED ON THOSE CATEGORIES.

>> BASED ON THE PROPOSED CATEGORIES.

>> BROCKHOUSE: I CAN GIVE SOMEBODY 22.5 OR 23.5 OR WHATEVER.

>> THAT'S CORRECT.

>> BROCKHOUSE: IN COMPARISON TO OTHERS OR COMPARISON TO ITSELF.

>> ON THE MERITS OF THEIR PROPOSAL.

YOU LOOK AT ALL THE PROPOSALS, RIGHT, BUT YOU HAVE A STANDARD YOU WANT TO COMPARE THEM FOR.

>> SCULLEY: LET ME JUST SAY.

IT'S NOT JUST ON WAGES, IT'S ON THE WHOLE PROPOSED PLAN, THE 25 POINTS.

IT'S THAT WAGES, TOTAL COMPENSATION, WHETHER IT'S IN WAGES OR BENEFITS, THAT THAT IS A FACTOR IN CONSIDERATION OF THE PROPOSED PLAN.

WE GENERALLY -- OUR POLICY IS THAT WE WANT CONTRACTORS WHO DO BUSINESS WITH THE CITY TO ALSO OFFER BENEFITS.

WE DON'T STIPULATE WHAT THOSE ARE, BUT WE WANT THEM TO PROPERLY COMPENSATE THEIR EMPLOYEES.

AND SO WE'RE JUST SAYING, BASED ON INPUT WE'VE RECEIVED FROM THE COMMUNITY AND FROM COUNCILMEMBERS, THAT WE ARE RECOMMENDING THAT CONSIDERATION BE GIVEN TO TOTAL COMPENSATION THAT CONTRACTORS ARE PAYING THEIR EMPLOYEES.

BUT IT'S ONE OF SEVERAL FACTORS.

AND IT'S NOT ABOUT MANIPULATING, THIS IS ABOUT A PROFESSIONAL EVALUATION OF THE COMPANY; THAT IS, WHAT IS THEIR PROPOSED PLAN TO DELIVER THE SERVICE AND THIS WOULD BE ONE OF THOSE FACTORS.

>> BROCKHOUSE: THAT'S CORRECT.

NOBODY USED THE WORD "MANIPULATING,," BUT I SUPPOSE.

SO HELP ME UNDERSTAND, THEN, I COULD -- SO IT COMES DOWN TO A JUDGMENT CALL, RIGHT, SO YOU'RE LOOKING AT THE WAGE, AND I SEE -- ITEM -- IN BID 1 SAYS -- BID 1 SAYS I'M PAYING 8.50 AN HOUR, BID TWO SAYS 9.50.

I COULD MAKE A RATIONALE THAT SAY THAT'S NOT FAIR, HE'S PAYING THEM.

I COULD SAY YOU GET 24, YOU GET 25 BECAUSE I GET BETTER ABOUT THE FACT.

THAT'S HOW THE SYSTEM'S GOING TO

[00:55:01]

WORK.

I COULD SEE THE WAGES AND THINK THAT IS AN UNFAIR PRACTICE, RIGHT? I COULD PERSONALLY BELIEVE THAT WE SHOULD BE PAYING THEM 15 BUCKS AN HOUR, ONE COMPANY'S PAYING 12, ANOTHER COMPANY'S PAYING 9.

YOU SEE, MY CONCERN IS FROM A BUSINESS -- FROM A SMALL BUSINESS BIDDER PERSPECTIVE, I'M VERY NARROW IN MY MARGINS AS IT IS, RIGHT? I'M TRYING TO BID ON CITY WORK AND WIN CITY CONTRACTS AND MY WAGES ARE GOING TO CHANGE AND FLUCTUATE BASED ON -- BECAUSE NOWHERE IS IT AT THAT JOHN HAS BEEN HERE SIX MONTHS AND I'M PAYING HIM $9.

THERE'S A LOT OF FLEXIBILITY IN BUSINESS OWNERS TO MOVE BACK AND FORTH IN THEIR WAGE CYCLES AND HOW THEY PAY PEOPLE, BUT YET YOU'RE ASKING FOR THEIR WAGES WITHOUT -- THERE'S MUCH MORE STORY TO THAT THAN JUST LOOKING AT A PERSON'S NAME WITH THE WAGE RATE.

SO HELP ME UNDERSTAND HOW YOU'RE GOING TO KEEP THE FAIRNESS IN THAT AND -- I HAVE GRAVE CONCERNS THAT YOU'RE LOOKING AT JUST A SINGLE NUMBER AND SOMEONE'S GOING TO MAKE A JUDGMENT CALL ON WHETHER OR NOT THAT'S A GOOD OR RESPONSIBLE BIDDER.

>> SO, COUNCILMAN, I'LL ADD A COUPLE OF THINGS.

AS SHERYL MACHINE SHUNNED, IT'S GOING TO VARY BY SOLICITATION, IT'S GOING TO DEPEND WHAT WE'RE LOOKING FOR.

>> BROCKHOUSE: EVEN MORE SCARIER.

>> WELL, IT HAPPENS TODAY.

>> BROCKHOUSE: THAT'S WHY IT'S SCARY TODAY.

>> THERE'S NO WAY TO TAKE ALL OF THE SUBJECTIVITY OUT OF IT, RIGHT? WE'VE GOT PROFESSIONAL EVALUATORS THAT ARE SITTING THERE EVALUATING A PROPOSED PLAN.

SOME MAY HAVE A CRITERIA WITHIN THAT PROPOSED PLAN, SOME MAY HAVE 20 CRITERIA WITHIN THAT PROPOSED PLAN.

IT COULD INVOLVE ALL KINDS OF DIFFERENT ELEMENTS.

THOSE EVALUATORS ARE ASKED, AND WE TALK TO THEM AT THE BEGINNING OF THE MEETING, YOU'RE ASKED TO LOOK AT THESE SPECIFIC CRITERIA, YOU HAVE TO WEIGHT THAT.

IN ADDITION TO THAT THE PROCUREMENT OFFICE IS GOING TO GIVE THEM A GUIDE THAT BASICALLY SAYS WHEN YOU LOOK AT ALL OF THIS CRITERIA, AND SOME GET VERY SPECIFIC, SOME OF THEM LOOK AT IT MORE AS A CATEGORY, BUT THEY'LL LOOK AT IT AND SAY, YOU KNOW WHAT IF IT'S WITHIN THE 0 TO 5 POINT RANGE, IT'S A WEAK PROPOSAL, IF IT'S IN THE FIVE TO 10, IT'S GOING TO BE IN THIS CATEGORY.

THERE'S GOING TO BE SOME LEVEL OF SUBJECTIVITY AND PROFESSIONAL JUDGMENT BUILT IN THERE.

THIS WOULD BE ONE OTHER ELEMENT, ASKING THEM TO JUST DISCLOSE TO US, TELL US THE WAGES THAT YOU PAY, TELL US THE BENEFITS THAT YOU PROVIDE AND THAT CAN BE TICKEN INTO -- TAKEN INTO CONSIDERATION BY THE EVALUATION COMMITTEE MOVING FORWARD.

>> BROCKHOUSE: YOU SAID SOMETHING VERY KEY.

THERE'S ALREADY SUBJECTIVITY IN IT AND THIS IS ONE MORE LEVEL IN IT.

SO YOU'RE INCREASING THE SUBJECTIVITY IN THE PROCESS FOR ALLOWING FOR A DISCUSSION ABOUT HOW SOMEBODY FEELS ABOUT THE WAGES OR BENEFITS BEING OFFERED, YOU'RE INCREASING THE SUBJECTIVITY, RIGHT?

>> I DON'T KNOW IF E EAR INCREASING -- WE'RE INCREASING THE SUBJECTIVITY BUT YOU'RE ADDING ANOTHER CRITERIA THAT YOU'RE GOING TO LOOK AT.

AGAIN, WHEN WE BID A LOT OF THESE THING, YOU'RE GOING TO SEE WHAT'S THE HOURLY RATE THAT THEY'RE PAYING.

BENEFITS BECOMES A LITTLE HARDER BECAUSE DEDUCTIBLES VARY, OUT-OF-POCKETS VARY, COMPANIES DO DIFFERENT KINDS OF PLANS, BUT AT LEAST WE WOULD HAVE THAT DISCLOSURE, AT LEAST WE'D HAVE THAT INFORMATION TO GET A LITTLE BIT BETTER UNDERSTANDING OF WHAT THE KIND OF PAY AND BENEFITS THAT THE COMPANY'S PROVIDING.

>> BROCKHOUSE: UNDERSTOOD.

I THINK I MADE MY POINT ON, WHICH IS FROM A SMALL BUSINESS OWNER'S PERSPECTIVE, I DESERVE THE RIGHT TO DICTATE WAGES FOR THE AGES, FOR THE TERMS OF MY EMPLOYEES, THE LENGTH, THEIR EXPERTISE, AND AS A WHOLE, A ONE NUMBER PICTURE, IT DOESN'T TELL THE WHOLE STORY, SO IF SOMEBODY COMES IN AND BIDS SOMETHING ON JUST A TOTAL WAGE AMOUNT, THAT'S HOW IT SHOULD BE, RIGHT? I'M SPENDING $50,000 TOTAL AN QUALLY IN WAGES AND THIS COMPANY'S SPENDING 48, THAT'S A CLEAN ASSESSMENT.

ONCE YOU START DIGGING INTO HOW I'M PAYING EACH INDIVIDUAL EMPLOYEE, THAT'S GETTING UNFAIR.

IT DIFFERENT FROM EVERY BUSINESS, HE OR SHE RUNS HIS SHOP.

THAT'S WHAT YOU'VE GOT TO REMEMBER, BEN AND TROY, A SMALL BUSINESS OWNER SITTING THERE MAKING THOSE DECISIONS EVERY DAY.

AND THE MARKET DICTATES THAT, NOT CITY HALL.

THE MARKET DICTATES WHETHER YOU'RE A GOOD EMPLOYER AND YOU KEEP YOUR EMPLOYEES OR NOT.

THAT'S THE -- THE PEOPLE BIDDING ON THAT WORK IS GOING TO BE EXPOSED BECAUSE THEY'RE EITHER GOING TO KEEP THEIR PEOPLE OR NOT THROUGH THE DECENT WAGES.

I'M BEATING A DEAD HORSE ON IT, BUT THE POINT IS, OBVIOUSLY I DON'T AGREE WITH THE WAY THAT'S SET UP, BUT THE MANAGER MENTIONED THAT YOU SOLICIT FEEDBACK FROM THE COMMUNITY.

I'M JUST CURE HOUSE WHO IS THE -- CURIOUS WHO IS THE COMMUNITY THAT THE FEEDBACK WAS RECEIVED FROM, THAT THESE THINGS NEEDED TO BE INCLUDED.

>> ACTUALLY WE HAVEN'T GONE TO THE COMMUNITY YET.

THAT'S GOING TO BE THE NEXT STEP.

AS I MENTIONED, THIS IS THE INTRODUCTION OF THE CONCEPTS.

>> SCULLEY: LET ME ADD TO THAT.

WE HAVE RECEIVED INPUT FROM THE COMMUNITY SINCE THE INCEPTION OF OUR SBEDA PROGRAM, SO THAT IS ONGOING.

WE RECEIVE FEEDBACK REGULARLY ON THE PROGRAM.

WHAT WE'RE SAYING TODAY, WE SET THE CONTEXT AND THE FRAMEWORK AT LAST WEEK'S MEETING, TODAY WE'RE OFFERING RECOMMENDATIONS THAT INCORPORATE COUNCIL'S RECOMMENDATIONS, SOME FROM THE COMMUNITY, SOME THAT THE STAFF HAS ANALYZED, WE'RE PRESENTING THOSE.

WE'RE ASKING THE COUNCIL FOR FEEDBACK TODAY, AND THEN WE'RE GOING TO GO OUT TO THE COMMUNITY AND CONDUCT A NUMBER OF FOCUS GROUPS AND MEETINGS WITH ALL OF

[01:00:01]

THESE STAKEHOLDERS AND THE GENERAL PUBLIC TO GET MORE INPUT, AND THEN WE'LL COME BACK TO THE CITY COUNCIL WITH SOME REFINED RECOMMENDATIONS.

>> THIS PARTICULAR ITEM DID COME DIRECTLY FROM THE CCR THAT WAS SPONSORED BY COUNCILMAN SALDAÑA AND AS WE TALKED ABOUT IT, IT WAS TALKING ABOUT A WAY TO INCORPORATE IN THE PROCUREMENT PROCESS.

WHAT TROY TALKED ABOUT, WE COVERED A LOT OF GROUND HERE, TROY DID, IN TERMS OF RECOMMENDATIONS, THOUGHT RECOMMENDATIONS, THOUGHT S, IDEAS ZERO OF BUT CAN MOVE FORWARD.

POLICY ISSUES THAT ARE IMPORTANT, THAT YOU WANT US TO GO WORK ON SOME MORE.

AND THEN AS SHERYL MENTIONED, WE'RE GOING TO GO BACK OUT TO STAKEHOLDERS, WE'RE GOING TO GO TALK TO ALL THESE GROUPS AND SAY WHAT DO YOU THINK ABOUT THESE THINGS AND GET THAT FEEDBACK.

WE'RE GOING TO COME BACK TO Y'ALL AGAIN, WOULD BE OUR RECOMMENDATION, HAVE THE CONVERSATION, AND THEN WE WOULD PROCEED FROM THERE.

>> BROCKHOUSE: I APPRECIATE THAT.

I'M SORRY I THOUGHT I HEARD THAT IT WAS SAID THAT COMMUNITY INPUT WAS RECEIVED.

I GUESS I MISHEARD THAT.

SO I'LL JUST LEAVE WITH -- I'LL JUST CLOSE WITH AND I YIELD THE FLOOR FOR NOW.

WE HAVE TO BE COGNIZANT OF HOW OUR POLICIES IMPACT PEOPLE, NOT IN A, QUOTE, FEEL GOOD ABOUT OURSELVES AND WE'RE THE MOST PROGRESSIVE COUNCIL IN THE HISTORY OF SAN ANTONIO, THIS IS GREAT.

WE HAVE TO FEEL GOOD ABOUT IT FROM AN ANALYTICAL PERSPECTIVE, OF WHAT THOSE COSTS ARE TO THE RESIDENT AND THEIR LABOR, RIGHT, WHAT THEY'RE EARNING AND MAKING AS WELL AS WHAT THE COST IS THROUGH BUSINESS AND HOW THEY'RE IMPACTING, RIGHT? ARE COSTS GOING UP? ARE WE LOSING JOBS AS A RESULT OF OVERREGULATION? ARE WE LOSING SMALL BUSINESSES AND MEDIUM-SIZED BUSINESS APPLYING TO THE AIRPORT CONCESSION AND OTHER THINGS, ARE WE PRICING OUT THE VERY PEOPLE WE'RE TRYING TO HELP IN SOME PROCESS TO CREATE AN AGENDA THAT FITS THE POLICY DIRECTION OF THE COUNCIL? AND THAT'S FINE, I'M ONE VOTE.

I'M NOT THE END OF THE WORLD, I'LL VOTE MY VOTE, BUT WE HAVE TO BE CAREFUL THAT WE MAKE THESE DECISIONS.

AND I'VE GOT TO ASK, WE PUT THESE IN EVERY DECISION WE HAVE, A BUDGET ANALYSIS OF THE VERY THINGS THAT WE'RE TRYING TO IMPLEMENT.

THE DOLLARS MATTER AND THEY DON'T BELONG TO US, THEY BELONG TO THE RESIDENTS.

SO WITH THAT'S I'LL YIELD THE FOR FOR

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN BROCKHOUSE.

COUNCILMAN SALDANA.

>> SALDANA: THANK YOU, MAYOR.

GOOD AFTERNOON, TROY.

>> GOOD AFTERNOON.

>> SALDANA: I KNOW YOU'RE WORKING THROUGH A LOT OF DIFFERENT ITERATIONS OF COMMENTS AND QUESTIONS BUT I THINK THE MOST IMPORTANT PIECE FOR US IN THE ROOM IS THAT THIS IS NOT THE END OF THE PROCESS, THIS IS THE BEGINNING OF ONE.

>> CORRECT.

>> SALDANA: AS I HAVE BEEN AS PATIENT AS YOUR WORK AND YOUR RESEARCH HAS ALLOWED, THAT PATIENCE HAS LOOKED LIKE A YEAR AND A HALF THAT I PUT OUT THAT CCR TO TRY TO GET TO A POINT THAT WE TRY TO UNDERSTAND EXACTLY WHAT OBJECTIVE WE'RE TRYING TO ACHIEVE.

SO I'M REALLY TRANSPARENT WITH FOLKS THAT ARE IN THE ROOM.

THIS IS THE WAY YOU HAVE A CONVERSATION ABOUT PUBLIC POLICY.

IT IS WITH PEOPLE IN THE ROOM THAT REPRESENT, WHETHER YOU'RE A MEMBER OF A UNION AND YOU REPRESENT AN ASSOCIATION, YOU'RE PRESENT IN THE ROOM, AND I'M GLAD THAT YOU ARE.

IF YOU REPRESENT THE BUSINESS COMMUNITY OR THE CHAMBER AND YOU HAVE A DIFFERENCE OF OPINION, IT'S GOOD THAT WE ARE UNDER ONE ROOF.

I HOPE YOU ARE TAKING NOTES ABOUT THINGS YOU AGREE WITH, DISAGREE WITH, HAVE QUESTIONS ABOUT.

NOBODY IS RUSHING TO A VOTE OR DECISION.

IN FACT, WHAT YOU'LL HEAR ME IS ASK A BUNCH OF QUESTIONS THAT I DON'T HAVE THE ANSWERS TO THAT I WANT TO MAKE SURE I KNOW BEFORE WE GET INTO ANY DECISION.

NOT ONLY THAT, WE'RE GOING TO GO OUT TO STAKEHOLDERS AND THEY'RE GOING TO GIVE US THEIR INPUT TOO.

SO LET'S NOT PUT THE CART BEFORE THE HORSE.

I KNOW THAT COUNCILMAN BROCKHOUSE HAS SOME PARTICULAR FEELINGS ABOUT PROCESS OR POLICY DECISION BUT I THINK THE SPEED OF THIS IS NOT ONE YOU CAN CRITICIZE.

WHAT WE'RE TRYING TO DO IS BE AS INCLUSIVE AND OPEN AND TRANSPARENT AS POSSIBLE.

SO THAT'S THE WORD THAT I'LL WORK WITH IS TRANSPARENCY.

SO THE CCR I PUT TOGETHER A YEAR AND A HALF AGO REALLY STEMMED FROM A REALLY SIMPLE STORY.

THE STORY IS WE HAD A PARTICULAR CONTRACT COME BEFORE THE CITY AND IT WAS A P3.

SO THERE WAS A HOTEL BUSINESS THAT WAS GOING TO BE OPERATED.

A NUMBER OF HOTELS WERE ELIGIBLE TO BE ABLE TO APPLY FOR A CITY BID.

AND WHEN WE WERE TALKING ABOUT THE CONTRACT WE SAID, OKAY, I CAN SEE WHAT THEY ARE GOING TO PAY THE CITY.

I CAN SEE WHAT THEY ARE GOING TO OFFER IN TERMS OF CONCESSIONS ON PARTICULAR PIECES.

ONE OF MY QUESTIONS THEN WAS DO WE KNOW WHAT BENEFITS OR WAGES THAT THEY OFFER TO THEIR EMPLOYEES.

AND THE ANSWER WAS WE DON'T KNOW.

I SAID, WHY NOT? SHOULD WE KNOW? CAN WE KNOW? WE HAD NEVER REALLY ASKED THAT QUESTION.

SO THE INCEPTION OF THE IDEA OF THE CCR WAS LET'S NOT PRESCRIBE TO PEOPLE WHAT THEY SHOULD PAY.

[01:05:01]

LET'S NOT DICTATE TO PEOPLE WHAT THEY SHOULD PAY BUT LET'S ASK FOR THEM TO DISCLOSE AS A PORTION OF THEIR APPLICATION TO A PUBLIC CONTRACT.

REMEMBER, A PUBLIC CONTRACT IS PUBLIC IN MANY WAYS.

AND NOT JUST WHAT YOU'RE OFFERING TO THE CITY, BUT THE TRANSPARENCY PIECE OF THAT IS THAT FOLKS CAN ASK ABOUT HOW YOU SCORED ON A PARTICULAR PIECE.

YOU CAN COMPARE IT ACROSS THREE DIFFERENT BIDDERS WHO PUT THEIR WORK IN FRONT OF THE CITY COUNCIL AND IN FRONT OF THE PUBLIC.

AT THE END OF THE DAY IT'S SOME RIGHT TO BE ABLE TO SEE HOW WE MADE A DECISION.

SO THAT'S THE POINT OF THE CCR.

IN MY MIND IT'S NOT TO CREATE A FLOOR THAT SAYS YOU HAVE TO PAY A CERTAIN AMOUNT TO YOUR EMPLOYEES.

IT'S THAT IF THE EVALUATION COMMITTEE ASKS THE QUESTION OF, WELL, THEY SCORED REALLY WELL.

THEY ARE ESSENTIALLY AT EQUAL FOOTING.

IS THERE ANOTHER QUESTION I CAN ASK LIKE ARE THEY OFFERING HEALTH BENEFITS TO THE JANITORS WHO ARE CLEANING THE AIRPORT OR THE CONVENTION CENTER? I THINK I SHOULD KNOW THE ANSWER TO THAT.

JUST THE SAME WAY THAT I KNOW A BUSINESS OWNER OR OPERATOR HAS HAD A BAD HISTORY OF PAYING THEIR CONTRACTS OUT OR PAYING THEIR EMPLOYEES OR HAS A BAD HISTORY OF DELIVERING ON TIME.

THE HEAT COMES BACK TO US WHEN A PROJECT DOESN'T GET DONE RIGHT.

THEY TALK TO THEIR COUNCIL MEMBER.

IN THE SAME WAY WE REPRESENT PEOPLE WHO WORK FOR THESE COMPANIES, SOMETIMES THE P3S DOING WORK AS JANITORS OR THEY RIG UP THE ALAMODOME TO PREPARE FOR CONVENTIONS OR CONCERTS.

THOSE FOLKS COME TO US AND SAY WE'RE BEING MISTREATED.

I DON'T HAVE A WORD OR A CONVERSATION WITH THEM TO SAY I'M GOING TO GET IN THE WAY AND DISCUSS THIS WITH YOUR EMPLOYER.

I DON'T DO THAT.

BUT IF THEY HAVE A BAD HISTORY AND THAT'S PART OF WHO WE ARE WORKING WITH WITH PUBLIC DOLLARS, I THINK IT'S GAME TO HAVE THAT DISCUSSION.

LIVING WAGE IS A LITTLE BIT OF A MISNOMER.

WE'RE NOT REQUIRING A LIVING WAGE BUT TELL ME WHY THERE'S

>> HE'S A BETTER EXPERT THAN I AM.

>> SURE.

>> SURE.

BY STATE LAW THERE IS A PREVAILING WAGE THAT'S SET BY THE DEPARTMENT OF LABOR.

SO THAT IS, BY STATUTE, IT GOES TO CONSTRUCTION CONTRACTS THAT WE'RE DEALING WITH, LIKE THE BOND PROJECTS.

IT WOULD REQUIRE A STATE LAW TO CHANGE PREVAILING WAGE TO A LIVING WAGE TYPE CONCEPT FOR THESE TYPES OF PROJECTS.

FOR THE A&E, THE ARCHITECTURE AND ENGINEERING, THAT'S A SELECTION BASED ON QUALIFICATIONS CRITERIA.

NOT SO MUCH THE LIVING WAGE ASPECT OF IT.

>> SALDANA: CAN YOU DEFINE WHAT A PREVAILING WAGE IS?

>> THE DEPARTMENT OF LABOR LOOKS ACROSS THE COUNTRY WHAT IS THE REASONABLE AND APPROPRIATE WAGE FOR EACH TYPE OF WORKER.

FROM A TRUCK DRIVER TO A LABORER TO ALL THROUGH EVERY VERTICAL CONSTRUCTION, HORIZONTAL CONSTRUCTION.

THERE'S MANY, MANY CATEGORIES AND THEY SET THAT LIVING WAGE.

EXCUSE ME, THAT PREVAILING WAGE.

AND IT'S ALSO REGIONALIZED AS WELL SO WE KNOW FOR CERTAIN REGIONS COST OF LIVING IS DIFFERENT.

SO WE WOULDN'T EXPECT TO PAY A TRUCK DRIVER THE SAME IN THIS AREA AS IT MIGHT BE IN CALIFORNIA.

IT WOULD BE DIFFERENT.

>> SALDANA: SURE.

SHERYL.

>> SCULLEY: JUST TO ADD, IN THE P3 EXAMPLE THAT YOU USED, THAT WAS A NON-SOLICITED P3 AND THOSE ARE NOT LONGER ALLOWED BY STATUTE.

SO IN THE FUTURE REGARDING P3S WE COULD STIPULATE REQUIREMENTS WITHIN THAT IN TERMS OF WHAT WE'RE LOOKING FOR.

I JUST MENTION THAT TO YOU BECAUSE THAT ONE DIDN'T HAVE THAT.

>> SALDANA: LIKE A DISCLOSURE OF WAGES AND BENEFITS?

>> SCULLEY: YES.

>> SALDANA: THIS IS NOT ABOUT A REQUIREMENT OF A WAGE.

IT'S ABOUT DISCLOSURE.

>> SCULLEY: WE CAN ASK THAT, THEN, IN THE FUTURE, FOR A P3 RFP.

>> SALDANA: IF YOU'RE A BELIEVER IN MARKETS AND THE FREE MARKET THEN COMPETITION IS A PRETTY GOOD THING.

WHEN YOU HAVE TO DISCLOSE IF YOU WANT TO DO BUSINESS WITH THE CITY YOU ARE THINKING TO YOURSELF THAT THERE WILL BE A PERSON OR AN ORGANIZATION OR A COMPANY WHO IS ALSO BIDDING ON THIS CONTRACT.

I'M CURIOUS ABOUT WHAT THEY PAY THEIR EMPLOYEES.

I'M GOING TO HAVE TO DISCLOSE WHAT I'M PAYING MY EMPLOYEES AND I DON'T WANT MYSELF TO LOOK UNEVEN IN THAT COMPETITION.

IF THAT WERE THE CASE.

SO THIS IDEA OF NOT MAKING A PRESCRIPTION, NOT TELLING FOLKS THAT YOU HAVE TO PAY A CERTAIN AMOUNT BUT THERE'S THIS RACE TO THE TOP WHERE, YOU KNOW, IF I HAVE THE ABILITY TO PAY MORE AND HAVE THE ABILITY TO PROVIDE HEALTH CARE BENEFITS, IF I'M NOT ALREADY DOING IT.

OR I MAY BE ALREADY DOING IT AND

[01:10:01]

YOU'LL LOOK REALLY GOOD WHEN ASKED THE QUESTION BY THE EVALUATORS FOR CITY PUBLIC CONTRACTS, YOU MIGHT STAND HEAD AND SHOULDERS ABOVE SOMEBODY ELSE WHO IS BIDDING WITHOUT THOSE THINGS.

THIS IS NOT ABOUT A HEAVY HAND.

THIS IS NOT A DICTATING OF A PARTICULAR RULE OR PARTICULAR WAGE.

THIS IS ABOUT BEING TRANSPARENT WITH THE COMMUNITY ABOUT WHERE THEIR PUBLIC DOLLARS ARE GOING.

IT IS NOT A REQUIREMENT TO HAVE TO BID ON CITY CONTRACTS.

SOME FOLKS DON'T BID ON CITY CONTRACTS BECAUSE THEY DON'T WANT TO DISCLOSE SPECIFIC THINGS.

YOU KNOW, YOU SHOULDN'T BE TRYING TO BID FOR PUBLIC DOLLARS IF YOU DON'T WANT TO BE PUBLIC ABOUT YOUR PROCESS.

NEVERTHELESS WE DON'T WANT TO BE SO OVERREGULATORY THAT WE SCARE ABOUT PEOPLE FROM DOING WORK WITH THE CITY THAT PROVIDES A VALUE TO A CITY THAT IS TRYING TO ENSURE IT IS BUILDING ITSELF PROPERLY.

THAT WAS THE PURPOSE OF THE CCR.

I HOPE THE FOLKS GO BACK AND DEBATE THIS BUT I HOPE WHAT YOU WILL PUT AT THE CENTER IS THIS IS NOT REQUIRING A CEILING OR A FLOOR FOR A LIVING WAGE BUT IT IS MORE ABOUT DISCLOSURE.

AND THAT WAS ABOUTBO A YEAR ANDA HALF WE STARTED THIS CONVERSATION BASED ON THE FACT THAT WE DIDN'T HAVE AN ANSWER TO DO WE KNOW WHAT FOLKS ARE OFFERING IN TERMS OF BENEFITS AND PAY, AND THE ANSWER WAS NO.

I WOULD LIKE TO GET TO A PLACE WHERE WE CAN BE HONEST AND TALK TO OUR COMMUNITY MEMBERS THAT WE HAVE A VERY TRANSPARENT PROCESS THAT WOULD SHOW THAT.

THAT WAS THE ONE QUESTION I HAD, OR THE ONE PIECE OF POINT THAT I HAD ON THE CCR SO THAT FOLKS AREN'T CONFUSED ABOUT WHAT WE'RE LOOKING FOR THERE.

LET ME TRANSITION HERE TO THE PIECE ABOUT LOCAL PREFERENCE.

YOU MENTIONED THE IDEA OF BRINGING IN MUNICIPALITIES WITHIN THE CITY TO INCLUDE THEM.

TELL ME ABOUT THE IDEA BEHIND THAT.

>> THE IDEA BEHIND THAT IS THAT THERE IS AN ECONOMIC BENEFIT TO THE CITY OF SAN ANTONIO BY ALLOWING THESE BUSINESSES AND THESE SMALL CITIES TO COMPETE.

THEY HAVE EMPLOYEES THAT MAY LIVE IN THE CITY OF SAN ANTONIO THAT MAY WORK IN THE CITY OF ALAMO HEIGHTS.

THEY MAY TRAVEL AND PAY SALES AND PROPERTY TAX IN THE CITY OF SAN ANTONIO.

SO THERE IS AN ECONOMIC BENEFIT TO CONSIDERING THEM LOCAL.

THAT WAS THE WHOLE IDEA BEHIND THAT.

>> SALDANA: SO IS THERE CONCERN ABOUT FOLKS THAT MIGHT MOVE INTO SPECIFIC AREAS THAT MAY NOT BE IN THE CITY? I'M THINKING OF AN ALAMO RANCH IN THE FUTURE THAT MAY INCORPORATE AS A CITY OR GET FURTHER AWAY IN THE CITY IN THAT WAY.

HAVE YOU TALKED THROUGH THOSE POINTS?

>> WE HAVE NOT TALKED THROUGH THOSE POINTS.

WE HAVE FOCUSED ON THE CITIES INTERNALLY BUT NOT THE OUTLYING AREAS.

WITHIN THE ACTUAL CITY LIMITS OF SAN ANTONIO.

>> SALDANA: WE'RE NOT PUSHING WORK OUT FROM OUR CITY BOUNDARIES?

>> NO.

IT WOULDN'T BE IN THE COUNTY OR SAMSA, JUST THE CITY OF SAN ANTONIO.

THE RECOMMENDATION WOULD BE TO INCLUDE THOSE SMALL CITIES THAT ARE WITHIN THAT OUTER PERIMETER.

>> SALDANA: THAT ANSWERS MY QUESTION.

THAT WAS THE CONCERN I HAD.

IF YOU'RE LOCAL THERE'S DIFFERENT WAYS TO DEFINE THAT AND THE ABILITY TO SAY YOU'RE WITHIN 410 OR 1604, YOU'RE PART OF THE SAN ANTONIO FABRIC AND DNA, WHETHER THAT'S A BLOCK AWAY FROM THE BORDER OR NOT.

>> THAT'S CORRECT.

>> SALDANA: OKAY.

ALL RIGHT.

I'M GOING TO PASS IT OVER TO MY COLLEAGUES, BUT BEFORE THAT I WANT TO MAKE SURE THAT I'M VERY CLEAR ON THE CCR RECOMMENDATION THAT YOU'RE MAKING.

I'M LOOKING AT A SLIDE HERE AT THE VERY END THAT SAYS THOSE CONTRACTS ABOVE $50,000.

COULD YOU GIVE ME THE RAT TNAO G $50,000?

>> $50,000 IS PRETTY MUCH THE STANDARD WE APPLY ACROSS THE CITY ON ALL OF OUR PROCUREMENTS.

WHEN YOU START LOOKING BELOW THAT $50,000 THRESHOLD, AS I MENTIONED, WE HAVE HIGH VOLUMES THERE, ABOUT 8,000 PURCHASE ORDERS.

TO DO THAT WOULD REQUIRE THE ADDITIONAL FTE COUNTS AND TODAY THOSE RESOURCES AREN'T AVAILABLE.

>> SALDANA: IF I'M CONCERNED ABOUT THE FACT WHERE THE CITY IS MOVING TO A NEW SYSTEM WHERE I HAVE TO SHOW EVERYBODY MY WAGES AND HAVE TO SHOW ON ALL CONTRACTS THAT ARE ASSOCIATED WITH THE CITY OF SAN ANTONIO WHETHER I'M OFFERING HEALTH CARE OR NOT.

I BELIEVE WHAT YOU HAVE TOLD ME IS THERE'S ONLY SPECIFIC CONTRACTS WHERE WE ARE ABLE TO DO THAT.

>> FOR EXAMPLE, PROFESSIONAL SERVICE CONTRACTS.

>> SALDANA: AS AN EXAMPLE OF A PROFESSIONAL SERVICE CONTRACT.

>> EXTERNAL AUDIT FORM OR ARCHITECT OR AN ENGINEER.

THOSE PROCUREMENTS BASED ON STATUTE JUST LOOK AT THE QUALIFICATIONS OF THOSE COMPANIES AND WE DON'T LOOK AT OTHER FACTORS BEYOND QUALIFICATIONS.

PLUS, I'M NOT SURE ASKING THE QUESTION ABOUT DISCLOSURE OR LIVING WAGE HOW MEANINGFUL THAT

[01:15:01]

WOULD BE IN THOSE TYPES OF CONTRACTS.

>> SALDANA: YEAH.

LIKE AN EXTERNAL AUDITOR, FOR EXAMPLE, WE'RE NOT GOING TO HAVE ISSUES OF HITTING A LIVING WAGE.

>> OR A PARTNER OR ACCOUNTANT WORKING FOR THOSE FIRMS.

>> SALDANA: AND THE TWO OTHERS YOU MENTIONED ARE P3S AND CON SEXES.

CONCESSIONS.

>> THE WE WOULD BASICALLY ASK THE QUESTION AS WE TALKED ABOUT ASKING HOW MUCH ARE YOU GOING TO PAY THE EMPLOYEES IN THOSE CONCESSIONS AND WHAT BENEFITS WOULD YOU BE OFFERING? .

BASED ON COUNCILWOMAN SANDOVAL'S QUESTION LAST WEEK WE CAN DO THAT IN TODAY'S CONCESSION BY AMENDING THAT.

>> SALDANA: WELL, I THINK WHAT WE'RE DRIVING TO IS TO BE ABLE TO ENSURE THAT PUBLIC DOLLARS ARE PUBLIC IN THE WAY THAT WE ARE TREATING NOT ONLY THE EMPLOYER WHO IS PUTTING THEIR NAME ON THE LINE AND BIDDING FOR THE WORK BUT THAT THAT TRICKLES DOWN TO THE EMPLOYEE IN A WAY THAT THEY ARE TAKING CARE OF WITH REGARD TO HEALTH CARE AND WAGES.

AND WE'RE NOT PRESCRIBING MUCH BUT WE DO WANT TO KNOW WE CAN COMFORTABLY SAY THOSE FOLKS WHO ARE NOT ONLY WORKING FOR THE CITY DIRECTLY, BUT THOSE THAT BENEFIT OFF THE CONTRACTS THE CITY PUTS OUT ARE BEING TREATED FAIRLY AS WELL.

I THINK THAT GIVES US AN ASSURANCE WHEN WE ARE ABLE TO LOOK THROUGH BIDS AND BE ABLE TO ASK THAT QUESTION WITHOUT THE ANSWER BEING NO WE DON'T HAVE THAT INFORMATION.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: GREAT.

THANK YOU, COUNCILMAN SALDANA.

COUNCILMAN SHAW.

>> SHAW: THANK YOU, MAYOR.

THANK YOU FOR THAT CLARIFICATION, COUNCILMAN SALDANA.

JUST A COUPLE OF BRIEF QUESTIONS.

I HAVE BEEN READING THIS SINCE WEEKS AND WEEKS.

YOU PUT A LOT OF INFORMATION INTO THESE 36 POINTS.

THIS IS A VERY COMPLICATED ISSUE AND I HOPE MY COLLEAGUES UNDERSTAND THERE ARE MANY MOVING PARTS AND VARIABLES THAT COME INTO PLAY IN TERMS OF THIS PROCESS.

I THINK IF WE ARE SEEING IT FOR THE FIRST TIME AND ASKING QUESTIONS AND TRYING TO DIVE INTO IT IS LIKE READING A BOOK IN ITALIAN WHEN I SPEAK SPANISH.

THE MIND IS COMPLETELY DIFFERENT.

AND I'M TRYING TO DIGEST MUCH OF THIS INFORMATION.

I FEEL LIKE I'M BACK IN LAW SCHOOL RELEARNING A DIFFERENT LANGUAGE AGAIN.

BUT IN TERMS OF MY QUESTIONS,

>> WE DO APPLY IT BELOW $50,000 AS WELL.

PREDOMINANTLY IF THERE WERE GOING TO BE ADDITIONAL REQUIREMENTS, THAT WE TALKED ABOUT THOSE ADDITIONAL CONSIDERATIONS IN THE BACK WE WOULD PROBABLY LOOK AT 50,000 OR ABOVE.

>> SHAW: IS THAT JUST ONE CONTRACT OR IS THAT FOR CUMULATIVE CONTRACTS? SAY IF AN INDIVIDUAL BIDS ON MORE THAN ONE CONTRACT.

>> EVERY CONTRACT.

>> SHAW: IT'S AN INDIVIDUAL CONTRACT.

SO IF ONE BIDDER BID ON TEN DIFFERENT CONTRACTS BUT EACH ONE ARE SMALL, OVER 50,000, THEY WOULD NOT FALL INTO THAT CATEGORY?

>> THERE WOULD BE SOME LEVEL OF DUE DILIGENCE ON IT.

IF IT'S A GOOD OR PRODUCT WE MIGHT TEST THE PRODUCT OR DO SITE VISITS BUT THERE IS A POSSIBILITY THAT WE WOULD NOT LOOK AT THOSE BASED ON THE AGGREGATE COSTS .

>> SHAW: COOL.

REGARDING MY COLLEAGUE NEXT TO ME, THE REASONABLE BIDDER, RESPONSIBLE BIDDER, WHATEVER YOU CALL IT.

>> RESPONSIBLE.

>> SHAW: RESPONSIBLE BIDDER.

I LIKE THE IDEA OF LIMITING THE FELONY TO A THREE YEAR.

I LIKE TO GET A POLICY DIRECTION ON BEST PRACTICES.

WE'RE PUSHING A FAIR HIRING INITIATIVE.

SO CERTAIN INDIVIDUALS WHO MAY HAVE FELONIES THAT HAVE DONE THEIR TIME OF BEING ON PROBATION OR PAROLE ARE TRYING TO GET A FAIR SHAKE IN SOCIETY.

I WOULD LIKE TO SEE IF WE COULD LOOK MORE INTO A MORAL TURPITUDE PERSPECTIVE IN LOOKING AT THOSE INDIVIDUALS.

INDIVIDUALS, YOU KNOW, CHARGED WITH THEFT BY CHECK, EMBEZZLEMENT AND OTHER CASES, I UNDERSTAND THAT.

BUT DRUG CASES OR JUST CERTAIN CASES THAT WHEN PEOPLE HAVE DONE THEIR TIME, REHABILITATION AND THEY'RE TRYING TO GO BACK OUT INTO SOCIETY.

I WOULD LIKE TO GIVE THEM AN OPPORTUNITY THAT'S WITHIN THAT THREE-YEAR PERIOD.

I WOULD LIKE TO SEE MAYBE THE BEST PRACTICES OF OTHER CITIES AND HOW WE CAN IMPLEMENT THAT HERE IN SAN ANTONIO.

ALSO IN TERMS OF CERTAIN CONTRACTS AND REALLY BEING ENGAGED IN THE ACTUAL CONTRACT.

I THINK MY COLLEAGUE, COUNCILMAN SALDANA, SAID IT BEST WITH THE RADIOS.

YOU DON'T WANT ME TO PICK A RADIO BECAUSE THAT'S NOT MY EXPERTISE.

AND TRYING TO LEARN THIS PLUS HOW RADIOS WORK AND ALL THAT COMES INTO PLAY WITH THE RADIOS, I WOULD HAVE NO CLUE.

I WOULD HAVE NO CLUE.

I WOULD LIKE THIS COUNCIL TO BE MORE ON THE PROCESS OF HOW WE

[01:20:03]

CHOOSE THE BEST BIDDER.

I THINK THAT'S OUR ROLE AS CITY COUNCIL.

NOT TO SAY THIS PERSON IS BETTER THAN THIS PERSON.

BUT AS LONG AS THAT PROCESS IS FAIR, DELIBERATE, WELL-THOUGHT-OUT.

IT'S GOING TO BE VERY FLEXIBLE AND FLUID.

WE UNDERSTAND THAT.

I AM FROM THE PERSPECTIVE THAT WE NEED TO BE LOOKING AT THE PROCESS.

I AM VERY SUPPORTIVE OF US NOT BEING LOBBIED FOR CERTAIN PEOPLE.

IT'S NOT THE LOBBYISTS, PER SE, IT'S THE FACT THAT I DON'T UNDERSTAND THAT FIELD.

I DON'T UNDERSTAND RADIOS.

I DON'T UNDERSTAND WHAT'S THE BEST CAR.

THAT'S AN OPINION.

THAT'S NOT MY THING.

I WANT TO MAKE SURE THAT EVERYBODY HAS A FAIR PROCESS WHEN BIDDING FOR CITY CONTRACTS.

I THINK THAT'S OUR ROLE HERE ON COUNCIL.

I WROTE SOMETHING DOWN BUT I DON'T KNOW WHAT IT MEANT.

[LAUGHTER]

>> SHAW: OH, DISCRETIONARY CONTRACTS.

SO THE DISCRETIONARY CONTRACTS, WE DO HAVE THE ABILITY TO MANEUVER OR -- I WON'T SAY MANIPULATE, BUT TO CHANGE THE BOUNDARIES OF WHAT IS CONSIDERED A LOCAL PREFERENCE.

>> YOU AS A COUNCIL HAVE THAT DISCRETION.

IF Y'ALL WANTED TO INCLUDE THOSE ORGANIZATIONS WITHIN THE CITY LIMITS OR IF YOU WANTED TO EXPAND THAT TO, FOR EXAMPLE, THE COUNTY.

Y'ALL HAVE THAT POLICY DISCRETION, YES, SIR.

>> SHAW: I DEFINITELY WOULD LIKE TO LOOK AT THAT AND START INCLUDING THOSE INDIVIDUALS.

AND THE RATIONALE BEHIND THAT IS THEY MAY HAVE EMPLOYEES WHO LIVE IN THE CITY OR THEY MAY BE BUYING FROM SUBS THAT LIVE IN THE CITY OR DO BUSINESS IN THE CITY.

I WOULD LIKE TO INCLUDE THAT BECAUSE AT THE END OF THE DAY I THINK IT BENEFITS THE CITY AS A WHOLE.

IF WE CAN LOOK AT THAT FOR FUTURE DISCUSSION TO SEE HOW DO WE INCLUDE THOSE INDIVIDUALS ON THEIR DISCRETIONARY CONTRACTS.

>> OKAY.

>> SHAW: AND I BELIEVE THAT'S IT.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN SHAW.

COUNCILMAN COURAGE.

>> COURAGE: THANK YOU, MAYOR.

LET ME START OFF BY SAYING WOW.

BECAUSE, AS YOU SAID, THIS IS REALLY A LOT MORE COMPLEX THAN I THOUGHT WHEN WE FIRST SAID WE WERE GOING TO TALK ABOUT THIS TODAY.

WE ARE TALKING ABOUT THE PROCUREMENT PROCESS, AND THAT MEANS WE'RE TALKING ABOUT HOW THE CITY GETS SERVICES, HOW WE BUY PRODUCTS, HOW WE SPEND A VERY LARGE PART OF OUR BUDGET.

AND SO I HAVE TO CONCUR WITH COUNCILMAN BROCKHOUSE.

I THINK WE'VE MOVED ON THIS OR IT APPEARS WE MIGHT BE MOVING ON THIS MORE QUICKLY THAN I FEEL COMFORTABLE WITH.

AND ALSO I WOULD LIKE TO SAY THAT I FEEL LIKE WE HAVE KIND OF LUMPED THESE THINGS TOGETHER WHEN THEY SHOULD HAVE BEEN BROKEN DOWN AND HANDLED SEPARATELY ON SEPARATE OCCASIONS OR WITH SEPARATE MEETINGS WITH US.

I THINK, FOR EXAMPLE, RESPONSIBLE BIDDER, LIVING WAGE, HIGH-PROFILE WHAT THE POSSIBILITIES ARE THAT WE MIGHT OFFER AS SUGGESTIONS TO THOSE.

I THINK THE PREFERENCES, LOCAL PREFERENCE, VETERANS-OWNED, LOCAL BUSINESSES INSIDE COMMUNITIES.

I THINK THOSE I CAN UNDERSTAND THE PREFERENCES PART.

I THINK PUTTING THOSE TOGETHER FOR A DISCUSSION IS ONE THING BUT WHEN WE TALK ABOUT THE HIGH-PROFILE.

FOR EXAMPLE, MY QUESTION IS YOU'RE TALKING ABOUT RAISING THIS FROM 1 MILLION TO 5 MILLION.

I HAVE SEEN A LOT OF CONTRACTS THAT SAY THEY ARE $1 MILLION BUT THEY HAVE EXTRA YEARS THAT COULD BE ADDED LATER DOWN THE LINE TO MAKE IT A 2, 3, $4 MILLION CONTRACT.

ARE WE NOT SAYING IF IT ISN'T $5 MILLION WE'RE NOT GOING TO LOOK AT IT AND THEY COULD END UP BEING $3 MILLION, $4 MILLION, $5 MILLION BECAUSE OF THE RENEWALS AND ADDED YEARS PUT ON IT.

SO I REALLY THINK THAT THAT, YOU KNOW, TAKES A LITTLE MORE DISCUSSION AND UNDERSTANDING, AND ESPECIALLY ABOUT THE OTHER THINGS THAT ARE, YOU KNOW, OF A HIGH-PROFILE NATURE THAT AREN'T JUST MONEY BUT ARE THE KIND OF IMPORTANT ISSUES THAT PEOPLE IN THE CITY WANT US TO PAY MORE ATTENTION TO.

HIGH PROFILE, I WOULD LIKE TO SEE US ADDRESS THAT SEPARATELY.

YOU KNOW, LIVING WAGE, YOU KNOW, I THINK THAT'S SOMETHING THAT THIS CITY HAS TALKED ABOUT AND WE DO UNDERSTAND THERE ARE THE HAVES AND HAVE NOTS IN THIS CITY.

A LOT OF THAT INVOLVES AROUND WHAT THEY EARN FOR A LIVING, WHAT ARE THEIR WAGES AND WHAT ARE THEIR BENEFITS.

AND PART OF WHAT YOU WERE SAYING IS IF WE ARE GOING TO GO AHEAD AND HAVE COMPANIES BID WE MAY ASK THEM HOW MUCH DO YOU PAY, WHAT ARE YOUR BENEFITS.

BUT WE'RE NOT PUTTING ANY KIND OF GOAL, PER SE, TO THAT SO

[01:25:03]

THAT, YOU KNOW, COMPANIES MIGHT SAY WE PAY $7.50 AN HOUR, MINIMUM WAGE, $9.50, $12 AN HOUR.

BUT THERE'S NO WAY OF DETERMINING WHICH ONE IS GOING TO BE BEST FOR THE CITY.

YOU KNOW, WE MIGHT LOOK AT THE OVERALL DOLLAR AMOUNT, ONE COMPANY IS GOING TO GIVE US MORE MONEY OR PROVIDE A BETTER SERVICE AT A BETTER COST.

BUT I THINK WE OWE IT TO THE PEOPLE IN OUR CITY TO UNDERSTAND WHAT THAT COULD BE AND HOW WE CAN INCORPORATE THAT INTO DOING BUSINESS AS A CITY.

WHAT I THINK WE NEED, REALLY, IS A WAGE SURVEY.

NOW YOU MENTIONED THAT DALLAS USES A SYSTEM FROM MASSACHUSETTS? CAN YOU TELL ME WHAT THAT IS AGAIN?

>> IT'S AN INDEX THAT PUBLISHES THE LIVING WAGE BASED ON A COUNTY OR REGION AND THEY USE THAT TO DETERMINE.

FOR DALLAS, IT'S $11.15.

>> COURAGE: IS THAT INDEX ONLY FOR MASSACHUSETTS OR DID THEY LOOK NATIONALLY?

>> IT LOOKS REGIONALLY AND NATIONALLY IT APPLIES.

>> COURAGE: UNDERSTANDING THAT IS A TOOL TO LOOK AT CAN HELP GIVE US A GUIDELINE THAT WILL GIVE US A LITTLE BIT MORE INFORMATION TO CONSIDER WHAT A COMPANY MAY BE INCLUDING AND WHAT THEY PAY.

I MEAN, WE HAVE HAD A LOT OF DISCUSSIONS SEVERAL TIMES IN EXECUTIVE SESSION ABOUT BUSINESSES THAT WANT TO DO BUSINESS.

AND WE HAVE ASKED WHAT'S IT GOING TO PAY.

WE HEARD THE AVERAGE IS GOING TO BE X OR THE AVERAGE PAY IS GOING TO BE Y.

I CAN RECALL A COUPLE OF OCCASIONS WHERE WE SAID THAT'S PRETTY LOW.

CAN'T WE TALK TO THEM ABOUT PAYING A LITTLE BIT MORE?

>> SO WE HAVE ACTUALLY HAD THAT KIND OF A THOUGHT IN CERTAIN INSTANCES THAT HAVE BEEN BROUGHT TO US.

WHY NOT MAKE IT A MORE IMPORTANT PART OF CONSIDERATION OF WHAT WE'RE DOING AS WE TALK ABOUT THE DISCRETIONARY SPENDING THAT WE CONTROL AS A CITY COUNCIL .

YOU KNOW, I WOULD LIKE TO SEE US GET MORE INFORMATION.

MAYBE IT'S THAT NATIONAL WAGE SURVEY ON A LIVING WAGE THAT'S BEEN PUBLISHED.

LOOK AT IT, RECOGNIZE IF IT'S USEFUL OR NOT.

AND I CERTAINLY WANT TO KEEP US SUPPORTING PREVAILING WAGE.

BUT I THINK THAT HAVING THAT AS A TOOL IS AN IMPORTANT TOOL TO HAVE.

AND MY FRIENDS AND BUSINESSES HERE TODAY, I WANT EVERY BUSINESS TO BE SUCCESSFUL.

BUT WE ALSO WANT EVERY EMPLOYEE TO ENJOY SUCCESS WHEN THEY WORK FOR YOU AS WELL.

I'M TRYING TO MAKE SURE -- OH.

ONE OTHER THING THAT CAME UP.

YOU TALKED ABOUT LOBBYING AND YOU SAID NATIONAL LOBBYING, STATE LOBBYING.

>> YES, SIR.

>> COURAGE: YOU WANTED TO CHANGE THE REQUIREMENT THAT WE EMPLOY LOCAL PEOPLE TO DO THAT FOR US.

>> NO, IT'S THE OPPOSITE.

>> COURAGE: I WOULDN'T EXCLUDE THE LOCAL PREFERENCE FROM STATE LOBBYING.

BECAUSE I THINK WE HAVE PEOPLE HERE WHO WE COULD GIVE EXTRA CREDIT FOR FOR GOING DOWN THE ROAD AN HOUR AND 15 MINUTES TO AUSTIN HOWEVER MANY TIMES A MONTH.

WE WANT THEM TO.

I WOULD LIKE TO KEEP THOSE LOBBYING DOLLARS HERE IN SAN ANTONIO.

NOW FEDERAL IS A MUCH DIFFERENT STORY.

SO IF WE'RE GOING TO SAY WE'RE NOT GOING TO GIVE PREFERENCE TO SOME LOCAL PEOPLE WHO CAN LOBBY IN AUSTIN FOR US I THINK, YOU KNOW, WE'RE ELIMINATING SOME GOOD TALENT LOCALLY.

>> COUNCILMAN, THE REASON OUR DEPARTMENT HAD REQUESTED THIS OVER THE PAST COUPLE OF YEARS.

AND THE REASON IS TO BE ABLE TO CAST A WIDER NET IN OUR SOLICITATIONS.

FOR OUR LAST FEDERAL CONTRACT WE INVITED 40 PLUS FIRMS IN D.C.

AND ONLY HAD FIVE APPLY.

FOR THE STATE, I THINK IT WAS ROUGHLY THE SAME.

28 OR 30 FIRMS AND WE HAD, I THINK, FIVE ULTIMATELY APPLY.

I'M NOT SAYING THAT'S THE ONLY REASON BUT I THINK A POTENTIAL BIDDER LOOKS AT THAT AND SAYS THEY'RE GOING TO GIVE PREFERENCE TO SOMEBODY IN SAN ANTONIO.

I'M NOT SURE I'M INTERESTED IN COMPETING IF I DON'T HAVE THE POINTS THERE.

SO MORE THAN ANYTHING WE WANT THE BIGGEST POOL OF POTENTIAL CONSULTANTS TO CHOOSE FROM.

AND, YOU'RE RIGHT.

THERE MAY BE A FIRM HERE THAT RISES TO THE TOP AS THE BEST REPRESENTATIVE.

WE JUST DON'T WANT TO DISCOURAGE PEOPLE FROM COMPETING FOR THE WORK.

>> COURAGE: I GUESS IT'S JUST A FEELING I HAVE.

I DON'T WANT AN AUSTIN LOBBYIST, I WANT A SAN ANTONIO LOBBYIST WHO LIVES HERE WORKING FOR US.

[01:30:03]

RATHER THAN A LOBBYIST IN AUSTIN THAT WORKS FOR A BUNCH OF DIFFERENT GROUPS AND ORGANIZATIONS AND PEOPLE.

THAT'S WHY I THINK WE OUGHT TO KEEP THAT PREFERENCE IN THERE.

I GUESS THAT'S IT, MAYOR.

>> COUNCILMAN, ONE THING I WOULD ADD WHEN YOU'RE TALKING ABOUT THE HIGH-PROFILE PROCESS.

WE DO CONSIDER NOT JUST THE BASE AMOUNT.

WE ALSO INCORPORATE ANY AMOUNT FOR ANY FUTURE TERMS OR AMENDMENTS AS WELL.

SO YOU SEE THE FULL SCOPE OF THE COST OF THAT CONTRACT.

>> COURAGE: [INAUDIBLE]

>> THE OTHER THING THAT WE DO, YOU HAVE THOSE OTHER ITEMS WE TALKED ABOUT, HIGHLY COMPLEX OR TECHNICAL IN NATURE.

THE OTHER ITEM WE DO IS FORECASO FORECAST EVERYTHING OVER A MILLION DOLLARS AND WE'LL BRING THAT THROUGH THE COMMITTEE FOR CONSIDERATION.

YOU'LL SEE EVERYTHING OVER A MILLION DOLLARS.

IF THERE'S ANYTHING THE COMMITTEE WANTS TO SEE OR PIQUES THEIR INTEREST BELOW THAT $5 MILLION THRESHOLD, WE'LL BRING THAT FORWARD AS WELL.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN COURAGE.

COUNCILWOMAN VIAGRAN.

>> VIAGRAN: THANK YOU, MAYOR.

TO SLIDE 19 ABOUT THE MATRIX ON YOUR RECOMMENDATIONS FOR EVALUATION POINTS.

TELL ME AGAIN WHAT DOES THIS MEAN AND WHAT DO YOU WANT TO ACCOMPLISH WITH THIS.

>> WHAT WE WANT TO ACCOMPLISH IS THAT IN LOOKING AT THE OTHER CITIES WE'RE A VERY PROGRESSIVE CITY IN OUR PREFERENCES.

AND BY EVEN INCREASING --

>> VIAGRAN: WHEN YOU SAY PROGRESSIVE CITY IN OUR PREFERENCES, WHAT DO YOU MEAN BY THAT?

>> WE BASICALLY, IF Y'ALL ACCEPT OUR RECOMMENDATION ON THE VETERAN-OWNED SMALL BUSINESS AND EXTENDING ADDITIONAL FIVE POINTS TO SERVICES ABLED, WE WOULD HAVE A TOTAL OF 40 POINTS AVAILABLE ON OUR DISCRETIONARY CONTRACTS .

COMPARING THAT TO OTHER CITIES THEY ARE TYPICALLY AROUND 20 OR BELOW.

AND SO WHAT WE'RE TRYING TO ACCOMPLISH IS BY SETTING A CAP AROUND THE PREFERENCE PROGRAMS WE KNOW THAT ALL PREFERENCE PROGRAMS WILL ALWAYS BE WORTH AT A MAXIMUM OF 25 POINTS.

THE OTHER COMPONENTS OF EVALUATION, BEING THE EXPERIENCE, BACKGROUND, AND QUALIFICATION, PROPOSED PLAN, AND PRICING WOULD BE 75 POINTS MINIMUM AVAILABLE FOR CONSIDERATION.

IN ADDITION, FROM A POLICY STANDPOINT, AND THIS WOULD BE AT Y'ALL'S DISCRETION AS THE COUNCIL, IN THE EVENT THAT ANY ADDITIONAL PREFERENCE PROGRAMS WERE BROUGHT FORWARD WE WOULD PROPOSE THAT THEY OPERATE WITHIN THAT 25-POINT CAP AS WELL.

>> VIAGRAN: SO IN DISCUSSION OF THE COUNCIL MEETING PROCESS, I THINK PART OF THIS, FOR ME, IS AND WHAT WAS DISCUSSED EARLIER BY MY OTHER COUNCIL COLLEAGUES, YOU ALL MENTIONED FACTORS AND CONSIDERATION ON PROPOSED PLANS.

SO HOW IS THAT WEIGHTED? THESE FACTORS IN CONSIDERATION FOR THE PROPOSED PLAN.

>> THE PROPOSED PLAN, THAT'S AN EXAMPLE ON THE CURRENT MATRIX YOU HAVE 25 POINTS.

WHAT WE DO IS WORK WITH EACH DEPARTMENT THAT IS WANTING TO ISSUE A SOLICITATION.

>> VIAGRAN: OKAY.

GO ON.

>> WITHIN THAT PROPOSED PLAN THEY ACTUALLY DIVIDE UP SPECIFIC QUESTIONS OR CRITERIA THAT THEY WANT THAT RESPONDENT TO ADDRESS.

YOU KNOW, HOW ARE YOU GOING TO PERFORM THE CONTRACT? WHAT RESOURCES ARE GOING TO BE AVAILABLE? AS PART OF THAT PROPOSED PLAN SPECIFICALLY WITH LIKE, IN THIS CASE, WITH THE CCR BY COUNCILMAN SALDANA WE WOULD ALSO BE ASKING IN ADDITION TO THAT FOR THE BENEFITS AND WAGES.

BUT THERE'S NOT ANY SPECIFIC WAITING WITHIN THAT 25 POINTS OR ANY I JUST MENTIONED.

>> VIAGRAN: SO SOMEBODY ON THE EVALUATION TEAM CAN THINK THAT THE WAGE IS MORE IMPORTANT SO THEY SCORE THE PROPOSED PLAN HIGHER THAN SOMETHING ELSE.

>> THEY COULD.

>> VIAGRAN: THEY COULD GIVE THEM TWO POINTS FOR PROPOSED PLAN BECAUSE THEY DON'T HAVE A LIVING WAGE IN THERE, IN THEORY.

>> IN THEORY THEY COULD.

>> VIAGRAN: IN THEORY THAT COULD HAPPEN.

I UNDERSTAND WE HAVE PROFESSIONALS AND EVERYONE IN THERE, BUT IN THEORY THAT COULD BE SOMETHING.

SO TO THE POINT THAT, YES, BECAUSE IT'S NOT ALIGNED IT IS STILL SUBJECTIVE IN THIS PROCESS AND IN THE EVALUATION PROCESS.

SO THERE IS STILL A LOT OF OBJECTIVITY HERE IN THIS EVALUATION IF IT'S NOT ALIGNED.

SO I THINK IF THERE ARE WAYS THAT WE CAN SEE SOME ALIGNMENT THAT WOULD BE HELPFUL OR HAVE AT LEAST THE COUNCIL MEMBERS CAN SEE THAT ALIGNMENT OF WHAT YOU'RE GOING FOR THERE.

AND, YOU KNOW --

>> COUNCILWOMAN, THE OTHER THING THAT HAPPENS IN THAT PROCESS IS THAT AS THESE COMMITTEES SCORE THESE DIFFERENT CATEGORIES LIKE PROPOSED PLAN, EXPERIENCE, BACKGROUND, AND QUALIFICATIONS, THEY DON'T SEE PRICE.

THEY DON'T SEE SBEDA, AND THEY DON'T SEE THE PREFERENCE PROGRAMS. THEY ARE ASKED TO SCORE THEIR

[01:35:02]

COMPONENTS FIRST, LOOKING AT ALL THE CRITERIA THAT'S LISTED OUT.

ONCE THEY SCORE IT FOR THE FIRST ROUND IT'S PUT UP ON A SCREEN.

THEY ARE ALLOWED TO DISCUSS THAT AMONGST THE GROUP.

YOU'LL SEE A LOT OF VARYING OPINIONS.

THEY HAVE A LOT OF VERY GOOD CONVERSATION AROUND WHAT THEY FEEL IS IMPORTANT AND WHY THEY THINK THIS COMPANY IS WEIGHTED HIGHER THAN ANOTHER COMPANY.

THERE'S A LOT OF BALANCED CONVERSATION AMONGST THE MEMBERS ABOUT THAT.

AND THEN WE GIVE THEM AN OPPORTUNITY, BASED ON WHAT THEY HEAR, IF THEY WANT TO ADJUST THEIR SCORES BEFORE WE REVEAL SBEDA, THEY ARE ALLOWED TO DO THAT.

ONCE THEY DROP THEIR SCORES THEN WE PUT IN SBEDA.

THERE IS SOME SUBJECTIVITY BUT AS A GROUP THEY ARE VERY TRANSPARENT AND TALKING AMONGST EACH OTHER IN TERMS OF THE CRITERIA.

THEY WILL HAVE VERY CANDID CONVERSATIONS ABOUT WHY I THINK THIS FIRM'S PROPOSED PLAN AND THESE SEVERAL CATEGORIES IS STRONGER THAN THIS PARTICULAR CATEGORY.

>> VIAGRAN: AND WHO RUNS THAT CONVERSATION?

>> I'M SORRY?

>> VIAGRAN: WHO RUNS THAT CONVERSATION?

>> THE PROCUREMENT OFFICE FACILITATES THAT CONVERSATION BUT THE ACTUAL SCORING MEMBERS ARE THE ONES CHIMING IN ON WHY THEY SCORED THE WAY THEY DID.

>> IN THE EVENT -- WE HAVE PROCUREMENT SPECIALISTS THAT BASICALLY MANAGE EACH PROCUREMENT.

IN THE EVENT THEY FEEL THERE IS AN INDIVIDUAL WHO IS MANIPULATING THE PROCESS THEN WE WILL ACTUALLY STOP THE PROCESS AND WE WILL TALK ABOUT HOW DO WE MOVE FORWARD.

DO WE REMOVE THAT INDIVIDUAL FROM THE PROCESS OR START OVER.

>> VIAGRAN: HOW MANY TIMES HAVE Y'ALL DONE THAT?

>> WHILE I HAVE BEEN HERE IT WAS ONCE ON AN AVIATION CONTRACT AND ANOTHER ONE WE EVALUATED THE PROCESS -- SO TWICE.

>> VIAGRAN: OKAY.

I THINK TO SOME POINTS OF MY COLLEAGUES, COUNCILMAN COURAGE AND BROCKHOUSE, I THINK THIS IS A VERY BIG DEAL AND THESE PARTS THAT WE ARE TALKING ABOUT RIGHT NOW -- AND COUNCILMAN SHAW.

THEY ARE VERY DETAILED AND IT'S A LOT AND IT IS CONFUSING, BUT THIS IS A LOT OF WORK THAT WE DO EVERY SINGLE DAY THAT IMPACTS OUR COMMUNITY EVERY SINGLE DAY.

SO I THINK -- AND YOU ALL ARE THE PROFESSIONALS.

YOU ARE THE ONES THAT GET PAID AND DO THIS TO THE T.

BUT, AGAIN, WE AS COUNCIL MEMBERS ARE PART OF THE PROCESS AND WE ARE VOTING THESE THINGS IN.

SO I THINK THE ONUS IS UPON US NOT TO BE EXPERTS IN THE FIELD BUT WE DO HAVE TO KNOW WHAT WE ARE VOTING ON AND HAVE SOME SORT OF AN UNDERSTANDING.

IF WE GET PUSHBACK, WE'RE BEING HELD ACCOUNTABLE BY THE COMMUNITY.

WE HAVE TO HOLD YOU AND THE STAFF ACCOUNTABLE AS WELL.

BECAUSE IT'S AMAZING HOW MUCH WE DO LEARN ABOUT EVERYTHING HERE ON THE COUNCIL, FROM ANIMALS TO PROCUREMENT PROCESSES TO SOIL COMPOSITION TO AVIATION AND EVERYTHING HERE ON THE CITY.

BUT WE DO NEED TO HAVE SOME SORT OF WORKING KNOWLEDGE ON THIS AND JUST BE ABLE TO ASK THE QUESTIONS AND STOP AND NOT BE AFRAID TO ASK THE QUESTIONS OR SHAMED NOT TO ASK QUESTIONS OR SPEAK UP.

I WILL SAY THAT.

SO ONE OF THE OTHER THINGS -- I WANTED TO TALK ABOUT SLIDE NUMBER -- I THINK IT'S THE BOUNDARIES, PLEASE.

I JUST WANT TO MAKE SURE WHEN WE'RE TALKING ABOUT THE BOUNDARIES HERE AND POTENTIALS OF CHANGING, I JUST WANT TO TAKE A MOMENT TO LOOK AT THIS MAP TOO.

AND WHEN WE'RE LOOKING AT THE MAP AND WE'RE LOOKING AT THE MUNICIPALITIES AND MAKING THE BOUNDARIES TO INCLUDE THOSE SMALL TOWNS WITHIN THE CITY BOUNDARIES, THEY ARE ALL TO THE NORTH OF THE CITY.

AND I DON'T KNOW WHEN THE CITY OF SAN ANTONIO IS GOING TO BE ABLE TO GROW ANY FARTHER SOUTH BECAUSE OF THE NEW ANNEXATION LAWS THAT WE HAVE.

AND THAT'S WHERE WE HAVE A LOT OF LAND AVAILABLE.

SO WHAT I WOULD LIKE FOR YOU TO DO IS WHEN YOU'RE HAVING THESE STAKEHOLDER MEETINGS TO GO THOROUGHLY THROUGH THIS AND RUN TRAPS AND DO WHAT WE NEED TO DO TO LOOK AT IF THERE WOULD BE ANY UNINTENDED CONSEQUENCES IN MAKING THIS HAPPEN WHERE WE WILL NOT INCENTIVIZE PEOPLE TO BE ABLE TO MOVE TO THE SOUTHERN SECTOR OF SAN ANTONIO OR HAVE THEIR BUSINESS BE A PART OF THESE ECONOMIC OPPORTUNITIES IN THE CITY OF SAN ANTONIO'S BIDDING PROCESS.

BECAUSE THEY ARE GOING TO BE OUT OF IT.

IF I HAVE A COMPANY THAT'S JUST OUTSIDE OF SOUTH OF 410 AND WANTS TO BE A PART OF IT BUT THEY'RE NOT GOING TO BE ABLE TO HAVE THOSE LOCAL PREFERENCES.

PLEASE LOOK AND GET INPUT FROM THE COMMUNITY AND EXPANDING THESE BOUNDARIES.

SO I WANT TO MAKE SURE I SHARED

[01:40:02]

THAT INFORMATION.

AND, YES, I THINK WITH THE HIGH-PROFILE CONTRACTS I THINK WE NEED TO KEEP IT AT $1 MILLION, NOT GO UP TO $5 MILLION.

I THINK IT'S A LOT BUT THAT MEANS WE'RE DOING A LOT OF A MILLION DOLLARS CONTRACTS BUT WE STILL HAVE TO DO OUR DUE DILIGENCE WITH THE CITY COUNCIL.

YES, I'M GOING TO SAY WHAT I SAID WEEKS AGO.

THERE IS A NEED -- AND I DO WANT TO EXPAND THAT TIME IN ORDER THAT WE DON'T HAVE A HIGH-PROFILE CONTRACT ONE WEEK AND WE VOTE ON IT THE NEXT WEEK BECAUSE OF THE BLACKOUT PERIOD.

WE NEED MORE ACCESS AND THE ABILITY TO UNDERSTAND AND NOT JUST RUSH THROUGH A PROCESS OF UNDERSTANDING WHY YOU CHOSE WHAT YOU CHOSE.

OR WHAT THE RECOMMENDATION IS.

LASTLY, WHEN COMING TO THE STAKEHOLDERS IN THE NEXT STEPS I DO WANT TO BE SURE TO INCLUDE -- THIS IS A NICE START TO A LIST, I WOULD SAY.

WHAT I WOULD SUGGEST IS THAT YES ON TOP OF THE PUBLIC I ALSO WANT YOU TO PLEASE REACH OUT TO ALL OF THOSE IN YOUR MENTORSHIP PROGRAMS, THOSE THAT ARE IN THE MENTEE PROGRAMS WITH THE SBEDA AND LOCAL PREFERENCE.

THEY'RE TRYING TO GET THEIR FOOT IN THE DOOR AND THEY DON'T HAVE ENOUGH EXPERIENCE, SO WE SHOULD HEAR FROM THEM DIRECTLY.

PLEASE, AND WITH THAT MAKE SURE THAT WE REACH OUT TO LAUNCH S.A.

AND LIFT FUND AND GET THEIR PERSPECTIVE ON ALL THIS, WHAT THESE RECOMMENDATIONS WOULD DO FOR THEM.

I ALSO WANT TO MAKE SURE THAT WE HAVE, YOU KNOW, SPEAK TO THE EMPLOYEES DIRECTLY.

THE EMPLOYEES OF THE RESTAURANTS.

THE EMPLOYEES -- IF WE'RE GOING TO DO THE INDUSTRY ORGANIZATIONS, LIKE THE RESTAURANT ASSOCIATION, THEN LET'S TALK TO THEIR WORKERS AS WELL AND LET'S TALK TO THE HOTELIER EMPLOYEES AS WELL.

LET'S LET THEM GIVE THEIR INSIGHT AND INPUT.

I THINK THAT WOULD BE VERY, VERY HELPFUL.

OF COURSE, I KNOW WE'RE LOOKING AT THE CHAMBERS AND SOME OF THEM HAVE SMALL BUSINESSES, BUT LET'S LOOK AT THOSE MICROBUSINESSES TOO AND SEE WHERE WE CAN UTILIZE AND HAVE THOSE VOICES AS PART OF THIS.

THAT'S ALL, MAYOR.

THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN VIAGRAN.

COUNCILMAN PELAEZ.

>> PELAEZ: THANK YOU, MAYOR.

SO I RECENTLY HAD OUR FENCE AT OUR HOME REDONE.

I DIDN'T USE UNION LABOR BECAUSE IT WAS A TINY FENCE.

SORRY, FELLAS.

WHAT I DID DO WAS MY WIFE AND I WENT ON THIS ANGIE'S LIST AND WE SAW A BUNCH OF FOLKS GETTING RATED.

IT'S AS CLOSE AS YOU CAN COME TO A CONSUMER BEING ABLE TO DO A BACKGROUND CHECK ON PEOPLE AND LOOK AT AND DO YOUR OWN DUE DILIGENCE.

I PAID A LITTLE EXTRA FOR FIVE STARS THAN FOUR STARS, RIGHT? AND I THINK A LOT OF US DO THAT.

AND WE DO THAT BECAUSE BECAUSE CONTRACTING ON A PERSONAL LEVEL AND AT AN ENTERPRISE LEVEL AND A CITY LEVEL AND INSTITUTIONAL LEVEL IS NOT JUST ABOUT THE BANG FOR YOUR BUCK ABOUT THE LOWEST PRICE POSSIBLE.

BEST BANG FOR THEIR BUCK AND TO STRETCH THAT DOLLAR OUT AS FAR AS POSSIBLE.

I'LL REMIND YOU THAT EVERYBODY ON THAT SIDE OF THE ROOM WEARING A UNION T-SHIRT IS A TAXPAYER TOO.

AND ALL THE EMPLOYEES DOING THESE JOBS FOR PRIMES AND SUBS AND SUBS OF SUBS ARE TAXPAYERS TOO AND THEIR EXPECTATION ISN'T JUST THAT, YOU KNOW, WE FIGURE OUT WAYS TO PAY THE LEAST AMOUNT AS POSSIBLE BUT ALSO, YOU KNOW, THE ROLE OF FEDERAL GOVERNMENT, FEDERAL CONTRACTING IS POLICY.

WE MAKE POLICY AND WE EXECUTE POLICY EVERY SINGLE TIME WE PROCURE.

WHETHER PEOPLE LIKE IT OR NOT, THAT'S JUST WHAT WE DO.

AND WE DO IT LOOKING FOR A BARGAIN.

AND THE BARGAIN IS REASONABLE COSTS PLUS GOOD SERVICE, YOU KNOW, GOOD PRODUCT.

AND THEN THE OPTIMAL ADVANCEMENT OF WHAT WE CONSIDER TO BE IMPORTANT VALUES.

DRUG FREE WORK PLACES.

THAT'S KIND OF AN IMPORTANT VALUE THAT WE INCLUDE IN THERE.

IN FACT, WE MIGHT ACTUALLY GET A CHEAPER PRICE IF WE DIDN'T REQUIRE PEOPLE TO DO DRUG BACKGROUND CHECKS, RIGHT? WE ADVANCE VALUES LIKE FAIR COMPETITION AND EQUAL OPPORTUNITY BECAUSE, YOU KNOW, WE MIGHT GET A BETTER PRICE IF WE ONLY USED FOLKS WHO EMPLOY STRAPPING YOUNG MEN AS OPPOSED TO CONSIDERING FOLKS, YOU KNOW, WHO NEED REASONABLE ACCOMMODATIONS AND ALL THAT FOR WORK.

WE ENCOURAGED AND WE CONTRACT FOR ALSO MAKING SURE THAT THEY ARE LIVING UP TO OUR IDEALS OF

[01:45:01]

LOW ENVIRONMENTAL IMPACT PRACTICES AND PAYING THRIVEBLE WAGES AND MAKERS THAT THEY ARE OBSERVING SAFETY RULES AND THEY'VE GOT GOOD BACKGROUNDS.

AND SO THESE ARE NOT JUST A HOMOGENOUS GROUP OF TAXPAYERS EXPECTING US TO PAY THE LEAST POSSIBLE AND BE OKAY WITH THAT.

I WILL TELL YOU ALSO THAT COUNCILMAN BROCKHOUSE, I'LL PUSH BACK ON THIS IDEA THAT DOING BACKGROUND CHECKS AND THOROUGH ONES ARE AN ONRUS HARDSHIP.

I DID MY BACKGROUND CHECK ON MY COMPUTER AND I PAID LESS THAN 10 BUCKS TO DO IT.

BY THE WAY, NOT MUCH ON THERE, IN CASE YOU'RE CURIOUS, BUT I DID IT ANYWAY.

PARDON ME?

>> [INAUDIBLE]

>> PELAEZ: BUT THE POINT IS MY BACKGROUND CHECK CAUGHT PRIOR LITIGATION AND IT WOULD CATCH, YOU KNOW, CRIMINAL ACTIVITY AND RELATED FLAGS LIKE THAT POPPING UP IN ALL JURISDICTIONS AROUND THE UNITED STATES.

I PAID LESS THAN $10.

IF PAYING LESS THAN 10 BUCKS IS ONERUS AND TOO DIFFICULT TO DO FOR A MILLION DOLLAR CONTRACT, I'M NOT SURE WE'RE LIVING IN THE SAME UNIVERSE.

THE NEWSPAPER AND A LOT OF PEOPLE THEIR HAIR CAUGHT ON FIRE BECAUSE IT WAS THIS PROBLEM OVER AT CENTRO WHERE WE HAD SOMEBODY EMBEZZLE A LOT OF MONEY.

HAD SOMEBODY DONE A BACKGROUND CHECK THEY WOULD HAVE DISCOVERED THAT THIS PERSON HAD TWO PRIOR FELONIES FOR BANK FRAUD AND TWO PRIOR CONVICTIONS FOR THEFT.

10 BUCKS IS NOT MUCH MONEY AND IT'S NOT MUCH OF A COMMITMENT TO PAY TO MAKE SURE THAT WE GET RESPONSIBLE BIDDERS DOING BUSINESS FOR US, WHO ARE NOT JUST TAKING CARE OF THEIR EMPLOYEES BUT TAKING CARE OF OUR MONEY AND TAKING CARE OF BUSINESS, RIGHT? SO WHAT I WOULD LIKE TO DO -- THANK YOU VERY MUCH.

WHAT I WOULD LIKE TO DO IS, YOU KNOW, ENCOURAGE YOU TO DO WHAT YOU HAVE SET OUT BUT TO REALLY BE IMAGINATIVE AND CREATIVE AND FIGURE OUT WHAT I HAVE LEFT OUT.

AND IF THERE'S BETTER WAYS TO DO WHAT WE ARE SUGGESTING.

AND I WOULD ENCOURAGE YOU ALSO TO DON'T JUST LOOK AT DALLAS AND AUSTIN AND HOUSTON, BUT THERE'S A LOT OF OTHER CITIES OUT THERE WHO DO THINGS BETTER THAN WE DO ALSO.

JEFF GOT UP THERE AND SAID WE WOULD LIKE TO CAST A WIDER NET.

GO DO THAT, THAT JEFF WANTS TO DO WITH HIS DEPARTMENT AND SEE IF YOU CAN CAST A WIDER NET AND COME BACK TO US AND TELL US ABOUT WHAT NON-TEXAS CITIES ARE DOING TO PROTECT THEIR CITIZENS AND THEIR TAXPAYERS AND THEIR OWN BUSINESS INTERESTS.

THANK YOU, SIR.

>> [INAUDIBLE]

>> PELAEZ: FOR THE RECORD, FOR THE CLERK, THERE'S NOTHING ON MY BACKGROUND CHECK.

THANK YOU.

>> MAYOR NIRENBERG: WE'LL GIVE YOU A SECOND CHANCE, COUNCILMAN.

COUNCILMAN TREVINO.

>> TREVINO: I'M GOING TO PUSH BACK ON MANNY'S BACKGROUND CHECK.

NO, I'M KIDDING.

THANK YOU.

THANK YOU, TROY.

I WANT TO THANK YOU FOR THE PRESENTATION.

YOU KNOW, I KIND OF WANT TO GO A LITTLE FURTHER THAN JUST THE PROCUREMENT PROCESS, BECAUSE THAT'S REALLY WHAT WE AS POLICYMAKERS NEED TO LOOK AT AS THE MUCH BIGGER PICTURE HERE.

I'M GOING TO READ TO YOU A COUPLE LINES FROM COUNCILMAN SALDANA'S CCR THAT I THINK REALLY MAKE THE POINT CLEAR.

ACCESS TO QUALITY-PAYING JOBS IS STILL THE BEST WAY TO ENSURE QUALITY OF LIFE.

STABILITY IN HOUSING, HEALTH CARE ACCESS, PRESERVATION OF FAMILIES AND PEACE OF MIND TO OUR RESIDENTS.

SIMILAR TO EXISTING PREFERENCES FOR SMALL WOMEN OWNED AND VETERAN BUSINESSES WE NEED TO CONSIDER THE WAGES PAID TO EMPLOYEE AS A MEASURE FOR THOSE APPLICANTS TO CONSIDER TO PARTNER WITH THE CITY.

AND IT CAME TO MIND AS WE'RE TALKING ABOUT THIS THAT THE PROCUREMENT IS PART OF THE PROCESS.

BUT THE OTHER PROCESS IS THE WORK.

SO, TROY, TALK TO US A LITTLE BIT ABOUT HOW WE REALLY HAVE TO TAKE A LOOK AT WHO WE'RE PARTNERING WITH AS WELL AND CONSIDER THE QUALITY OF WORK THAT'S BEING DONE, THE LEVEL OF COLLABORATION THAT WE HOPE TO RECEIVE WITHIN THIS PROCUREMENT PROCESS.

AND PART OF THE PROCUREMENT PROCESS, I THINK, IS HOPING THAT THINGS LIKE OUR CORE VALUES ARE

[01:50:02]

IN SYNC OR IN LINE WITH THE PEOPLE WE ARE ASKING TO DO OR TO PARTNER WITH THE CITY.

CARE TO COMMENT?

>> I'M NOT SURE THIS IS GOING TO ANSWER YOUR QUESTION, BUT IN ORDER TO MAKE SURE THAT WE'RE GETTING A QUALITY VENDOR WHO PRODUCES QUALITY WORK WE DO A COUPLE OF THINGS.

OF COURSE THERE'S THE EVALUATION PROCESS WHERE WE CONDUCT THE INTERVIEWS.

WE CONDUCT REFERENCES.

AFTER THE EVALUATION PROCESS IS COMPLETED, THAT DOESN'T STOP.

BECAUSE WE'RE PARTNERING WITH A COMPANY AND WE'RE ESSENTIALLY MARRIED AT THAT POINT IN TIME.

WE WORK WITH THE DEPARTMENTS TO ASSESS THE QUALITY AND PREFERENCE OF THE WORK.

IN THE EVENT THAT'S NOT WORKING WE WORK WITH THEM TO HELP THEM SUCCEED AND PARTNER WITH THEM.

THERE'S BEEN SEVERAL CASES WHERE WE HAVE HAD BUSINESSES THAT HAVE FLOUNDERED.

WE HAVE WORKED WITH THEM IN THE SMALL BUSINESS OFFICE TO GIVE THEM THE OPPORTUNITY, THE TOOLS AND THE TRAINING AND PARTNER THEM WITH OTHER ENTITIES TO MAKE THEM SUCCESSFUL.

IN SOME CASES THAT DOESN'T WORK, AND WE HAVE EXHAUSTED THOSE RESOURCES, THEN WE TERMINATE THE CONTRACTS.

BUT WE WORK THROUGH THEM FROM THE INCEPTION ON THE PROCUREMENT PROCESS AND PARTNER WITH THEM THROUGH THE DELIVERY OF THEIR SERVICES AS WELL.

>> TREVINO: BASICALLY WHAT I'M ASKING IS THE CITY BENEFIT FROM COLLABORATING WITH GOOD ACTORS VERSUS THOSE THAT ARE SIMPLY JUST TRYING TO CHASE THE NUMBERS ON A PROCUREMENT PROCESS?

>> DEFINITELY.

THERE'S A BENEFIT OF PARTNERING WITH QUALITY COMPANIES.

>> TREVINO: THAT'S THE BIGGER PICTURE RIGHT THERE.

AND I HOPE THAT -- I THINK IT'S CLEAR THAT IT'S FAIR TO BE ASKING THESE QUESTIONS.

I WAS JUST TEXTING SOMEONE THAT IT REMINDED ME OF A CLASS I HAD IN COLLEGE CALLED ETHICS IN BUSINESS.

AND MY HOPE IS THAT WE HAVE A ROBUST DISCUSSION ABOUT WHAT IT MEANS TO PARTNER WITH THE CITY AND HOW WE CAN PARTNER WITH GOOD ACTORS TO HELP US ACHIEVE A LOT OF THE GOALS THAT WE HAVE.

THERE IS A LOT GOING ON IN THE CITY.

I MEAN, THERE'S REALLY A LOT OF THINGS THAT WE'RE DOING AND, OF COURSE, FORTUNATELY WE PASSED ONE OF THE BIGGEST BONDS THE CITY HAS EVER SEEN.

AND, OF COURSE, IT'S A CITY THAT CONTINUES TO GROW.

I HAVE HAD MANY DISCUSSIONS WITH MANY CITY STAFF AND FRISBEE, FOR EXAMPLE.

ONE OF THE THINGS WE TALK ABOUT IS THE WORK THAT IS BEING EXECUTED, NOT JUST HOW THE WORK IS PROCURED BUT MAKING SURE THAT THAT IS PART OF THE PROCESS.

SO I JUST, YOU KNOW, WANTED TO CHIME IN AND SAY THAT WHAT'S BEING ASKED HERE IS REALLY, I THINK IT'S FAIR.

IT'S FAIR TO TALK ABOUT.

I ALSO WANT US TO TAKE A LOOK AT HOW MUCH WE DEPEND ON THAT PARTNERSHIP AND THAT COLLABORATION.

WE'RE ASKING A LOT FROM CITY STAFF TO HELP BUILD A GREAT CITY.

TO HELP UNDERSTAND A LOT OF THE ISSUES THAT ARE HAPPENING AND, OF COURSE, TRANSLATE THAT TO COUNCIL SO THAT WE'RE DEPENDING ON YOUR RELATIONSHIP WITH THESE PEOPLE WHO ARE WORKING HARD, WORKING TO IMPROVE OUR CITY.

AND IT'S MY HOPE THAT AS WE ARE DEVELOPING THIS PROCUREMENT PROCESS THAT WE CAN QUANTIFY THAT LEVEL OF QUALITY.

THAT WE CAN QUANTIFY OR ENCOURAGE GOOD ACTORS AND DISENCOURAGE BAD ACTORS.

TO COUNCILMAN PELAEZ'S POINT, BACKGROUND CHECKS ARE PRETTY QUICK.

I PUSH BACK TOO ON THIS NOTION THAT IT'S GOING TO HURT A SMALL BUSINESS.

I MEAN, I'M A SMALL BUSINESS OWNER.

OF COURSE, BEING ON COUNCIL, IT CAN TAKE A LOT OF TIME.

BUT, YOU KNOW, JUST WANT TO POINT OUT THAT THE CCR I THINK AT THE HEART OF THAT IS REALLY TALKING ABOUT THAT QUALITY OF LIFE THAT WE ALL WANT FOR OUR CITY.

AND I HOPE THAT WE CAN COMMUNICATE THE WORK THAT'S BEING DONE IS NOT ABOUT JUST GETTING THE JOB.

IT'S ABOUT WORKING WITH THE CITY IN A MEANINGFUL AND THOUGHTFUL WAY.

LAST NIGHT I MET A YOUNG DEVELOPER WHO WANTS TO THOUGHTFULLY WANTS TO BUILD AFFORDABLE HOUSING, YOUNG GUY.

WANTS TO KNOW MORE ABOUT OUR PROCESS, OUR CITY PROCESS.

WE WANT TO WORK WITH THIS PERSON AS MUCH AS POSSIBLE TO HELP GUIDE HIM THROUGH THE EXISTING PROCESS AND FIND OUT WHAT CAN WE DO TO IMPROVE THAT AS WELL.

BUT I THINK, AGAIN, WHAT'S AT

[01:55:02]

HEART HERE IS CREATING THAT PARTNERSHIP, CREATING THAT RELATIONSHIP AND BUILDING A CITY TOGETHER WITH OUR COMMUNITY.

SO I JUST WANTED TO SAY THE WORK BEING DONE IS IMPORTANT FOR US.

CERTAINLY APPRECIATE THE RECOMMENDATIONS AND ENCOURAGE STAFF TO CONTINUE TO BRING BACK POLICY RECOMMENDATIONS.

BECAUSE WE DO DEPEND ON YOU TO HELP US UNDERSTAND WHAT THE IMPLICATIONS ARE WELL INTO THE PROJECT AND, OF COURSE, EVEN POST-PROJECT RESULTS AND WHAT THAT MEANS.

ULTIMATELY, AS WE'RE BUILDING SMALL BUSINESSES AND, OF COURSE, THAT'S AT THE HEART OF BUILDING THE SBEDA PROGRAM IS BUILDING OUR COMMUNITY.

IT'S BUILDING IT WITHIN THE EXISTING RESOURCES THAT WE HAVE.

SO I JUST WANT TO SAY THANK YOU FOR YOUR WORK ON THAT AND ENCOURAGE YOU TO CONTINUE THAT COMMUNICATION AND THAT DISCUSSION.

AND ULTIMATELY WE WANT THE COMMUNITY TO KNOW MORE ABOUT THE WORK AND THE EXPECTATIONS THIS CITY HAS AND AT THE HEART OF THAT IS OUR CORE VALUES.

AND THOSE CORE VALUES MEAN SOMETHING AND THEY HAVE TO TRANSLATE TO OUR ENTIRE COMMUNITY AND NOT JUST A SPECIAL GROUP.

THANK YOU, MAYOR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMAN TREVINO.

COUNCILWOMAN SANDOVAL.

>> SANDOVAL: THANK YOU, MAYOR.

THANK YOU, STAFF, FOR YOUR PRESENTATION AND YOUR WORK ON THIS.

YOU KNOW, LAST WEEK THE MAYOR SAID THIS IS ONE OF THE BIGGEST THINGS THAT WE SPEND OUR TIME DOING.

WE SPEND THE MOST OF OUR TIME DOING, AND THAT'S DECIDING HOW WE DISTRIBUTE CONTRACTS, SO HERE WE ARE.

IT REMINDS ME OF A JOB.

AND IF YOU KNOW ME WELL I OFTEN TALK ABOUT WHEN I USED TO WORK AT THE AIR DISTRICT.

WE HAD A GRANT PROGRAM FOR CLEAN VEHICLES.

EVERY YEAR THE BOARD WOULD SET GUIDELINES FOR HOW THEY WERE GOING TO DISTRIBUTE THOSE AWARDS.

AND THEY TALKED ABOUT THEM.

THEY DISTRIBUTED THEM.

AND THEN A FEW MONTHS LATER YOU GOT TO APPROVE THE AWARDS THAT ABIDED BY THOSE GUIDELINES, RIGHT? AND THERE WAS ALWAYS ONE BOARD MEMBER WHO WAS REALLY ANGRY WITH HOW THE PROCESS TURNED OUT BUT HE NEVER FORESAW HOW HE COULD HAVE CHANGED THE GUIDANCE TO GET THE RESULTS HE WANTED.

HE WAS MAD WE GAVE A LIMO COMPANY MONEY TO HAVE CLEAN AIR VEHICLES.

HE HATED THE IDEA OF GIVING TAXPAYER DOLLARS TO A LIMO COMPANY.

HERE WE ARE SETTING THE GUIDELINES FOR THE OUTCOME WE WANT.

WE ARE SETTING POLICY, SO I THINK THERE IS MAYBE SOME LEARNING THAT WE HAVE TO DO IF WE WANT TO SET THE POLICY TO GET US WHERE WE WANT.

SO I THINK THERE'S A FEW THINGS THAT I'M HOPING IT WILL ACCOMPLISH THROUGH THIS PROCESS.

THE FIRST ONE IS DOING RIGHT BY OUR TAXPAYERS, KIND OF TO COUNCILMAN BROCKHOUSE'S POINT.

IT'S THEIR MONEY AND WE WANT TO MAKE SURE THAT THEY'RE GETTING VALUE FOR IT.

AND ALSO AS A CITY WE SET AN EXAMPLE TO OTHER BUSINESSES AND HOW WE DO OUR PROCESSES.

SO I THINK I WOULD LIKE TO THINK THAT SOME BUSINESSES LOOK TO US AS AN EXAMPLE.

AND ALSO WE ARE ONE OF THE LARGEST CONSUMERS IN SAN ANTONIO AND THAT GIVES US ANOTHER OPTION.

IT ALLOWS US TO DRIVE THE CITY INTO THE DIRECTION THAT WE WANT BECAUSE WE HAVE THAT BUYING POWER.

SO IT'S A CAREFUL BALANCE THAT WE HAVE TO DO, THAT WE HAVE TO HAVE.

AND SO I'M SITTING HERE ASKING MYSELF WHAT BRINGS -- WHAT POLICIES ARE GOING TO BRING THE BEST VALUE TO OUR TAXPAYERS, THE BEST VALUE AND THE BEST TALENT AND WHAT KIND OF BUSINESS PROCESS EXAMPLE DO WE WANT TO SET AND WHAT VALUES DO WE WANT TO INTEGRATE INTO THAT PROCESS.

FOR INSTANCE, WHEN THE CITY ADOPTED SBEDA THAT WAS A COMMITMENT WE MADE KNOWING IT WAS GOING TO COST THE TAXPAYER A LITTLE BIT MORE MONEY BUT WE FELT THE TRADE-OFF WAS WORTHWHILE IN ORDER TO MAKE SURE OUR SMALL BUSINESSES HAD AN OPPORTUNITY TO BE PART OF THE CITY'S BUDGET AND THE WORKFORCE HERE.

I THINK WHEN WE LOOK AT EITHER ADDING ON ADDITIONAL REQUIREMENTS AND MAKING CONSIDERATIONS, IT'S ANOTHER VALUE CHOICE LIKE THAT.

I DON'T SEE IT AS JUST AN ADDITIONAL REQUIREMENT BUT A WAY TO LIVE THE VALUES THAT ARE IMPORTANT TO THIS COUNCIL, WHETHER IT'S A PROGRESSIVE OR REGRESSIVE COUNCIL, WHATEVER YOU WANT TO CALL US.

SO ENOUGH TALKING, NOW I'M GOING TO ASK YOU SOME QUESTIONS.

YOU RECOMMENDED, TROY, THAT WE CONTINUE THE DUE DILIGENCE APPROACH VERSUS UNDERTAKING A RESPONSIBLE BIDDERS' ORDINANCE.

CAN YOU, LIKE COUNCILWOMAN

[02:00:01]

VIAGRAN'S QUESTION, HOW DOES THE DUE DILIGENCE WEIGH INTO THE SCORING?

>> WHEN WE CONDUCT OUR DUE DILIGENCE, WE DO ALL THE DUE DILIGENCE UP FRONT.

PROCUREMENT IS GOING TO BE DIVIDED INTO MULTIPLE PIECES.

YOU HAVE MINIMUM REQUIREMENTS FOR PASS FAIL.

SBEDA MAY HAVE CERTAIN THINGS.

IF YOU DON'T MEET THESE REQUIREMENTS YOU NEVER PROGRESS TO THE NEXT STAGE.

ONCE YOU PROGRESS TO THE NEXT STAGE THERE ARE SEVERAL DIFFERENT DEPARTMENTS THAT ARE INVOLVED IN THAT DUE DILIGENCE.

YOU HAVE INTERNAL AUDITOR'S OFFICE ARE LOOKING AT IT FROM CONTRIBUTIONS AND CONFLICTS OF INTEREST.

WE'RE LOOKING AT IT FROM THE VENDOR PERSPECTIVE TRYING TO PULL ALL OF THE INFORMATION TOGETHER THAT WE CAN FIND ON THAT VENDOR.

LIKE I MENTIONED, THE INTERNET SEARCHES TO FINANCIAL STABILITY.

REFERENCE CHECKS.

WE TAKE THAT INFORMATION AND COMPILE IT IN A FORMAT FOR THE EVALUATORS TO DIGEST AND TAKE THAT INTO CONSIDERATION DURING THAT EVALUATION PROCESS.

WE PROVIDE THAT TO THEM FOR THEIR CONSIDERATION.

A SPECIALIST ACTUALLY STANDS IN FRONT OF A ROOM LIKE THIS AND WALKS THEM THROUGH POINT BY POINT WHAT THAT DUE DILIGENCE UNCOVERED .

WE ARE LOOKING AT, AND WE HAVE DONE SOME OVER THE LAST SEVERAL MONTHS, LOOKING AT ACTUALLY EXPANDING THAT PROBABLY MORE TO COUNCILMAN PELAEZ'S POINT, LOOKING AT A COMPANY TO HELP SUPPLEMENT THAT AND DOING SOME MORE DEEPER DIVES INTO SOME OF THAT, ESPECIALLY ON OUR HIGHER PROFESSIONAL CONTRACTING.

BUT THAT'S WHAT WE DO ON OUR DUE DILIGENCE.

>> SANDOVAL: ARE ALL OF THEM PASS FAIL OR SOME OF THEM?

>> EACH INDIVIDUAL PROCUREMENT IS GOING TO BE UNIQUE.

AND IT GOES THROUGH A GOAL SETTING PROCESS FOR THE SMALL BUSINESS OFFICE AND THEY DEFINE THOSE REQUIREMENTS.

SOME OF THOSE WILL BE PASS/FAIL.

WE MAY ALSO HAVE SOME REQUIREMENTS UNIQUE TO THAT PROCUREMENT THAT ARE PASS/FAIL.

IT NEEDS TO OPERATE WITHIN THE CITY OF SAN ANTONIO.

BUT THERE MAY BE UNIQUE THINGS TO THAT PROCUREMENT.

>> SANDOVAL: AND DO THE BUSINESSES THAT ARE BIDDING ON THESE CONTRACTS KNOW WHAT THOSE REQUIREMENTS ARE? YOU KNOW, WHAT YOU'RE GOING TO DO YOUR DUE DILIGENCE ON.

THAT'S MADE AVAILABLE TO THEM?

>> THEY DON'T KNOW SPECIFICALLY AS FAR AS THE SEARCHES.

DEPENDING ON THE CONTRACT WE WILL ASK FOR THEIR AUDITED FINANCIAL STATEMENTS.

AND BASED ON THE DUE DILIGENCE WE MAY DO WE MAY BRING THEM IN FOR INTERVIEWS AND ASK THEM QUESTIONS AS A RESULT OF WHAT WE FOUND.

BUT THEY DON'T KNOW UP FRONT STEP BY STEP WE'RE GOING TO BE LOOKING AT, NO.

>> SANDOVAL: OKAY.

AND, ALL RIGHT.

SO I THINK I WOULD RECOMMEND THAT WE DO BEGIN INTEGRATING SOME OF THE CONSIDERATIONS IN THE RESPONSIBLE BIDDERS ORDINANCE AS WE MOVE FORWARD.

AS I SENT TO YOU IN MY E-MAIL YESTERDAY.

I ALSO WANT TO GET A SENSE OF HOW MANY OF -- HOW MUCH CONTRACTING DO WE DO NON-DISCRETIONARY AND DISCRETIONARY? THAT SEEMS TO MAKE A HUGE DIFFERENCE AS FAR AS HOW WE'RE ABLE TO CONTRACT.

CAN YOU GIVE ME DOLLAR AMOUNTS ON A YEARLY BASIS.

>> I THINK WE HAVE THAT IN A SLIDE FROM LAST WEEK, DON'T WE? LET ME TAKE A COUPLE OF MINUTES TO FIND THAT.

>> JUST TO CLARIFY YOUR EARLIER QUESTION, IF YOU WERE ASKING DO THEY KNOW ALL THE DUE DILIGENCE THAT WE DO, THEY DON'T NECESSARILY DISCLOSE ALL THE THINGS WE LOOK AT BUT IN TERMS OF THE REQUIREMENTS OF THE RFP AND HOW THE PROPOSALS GOT TO BE ORGANIZED AND THE INFORMATION WE ARE LOOKING FOR, THAT IS LAID OUT STEP BY STEP.

SO THEY KNOW EXPERIENCE, BACKGROUND, AND QUALIFICATIONS.

THESE ARE THE THINGS WE ARE GOING TO BE LOOKING AT.

>> SANDOVAL: THANK YOU, BEN.

>> SO TO GIVE YOU AN EXAMPLE, WE DO $568 MILLION.

OF THAT, WHAT'S GOING TO BE NON-DISCRETIONARY IS GOING TO BE INVITATIONS FOR BIDS BY $136 MILLION.

PLUS ANOTHER $82 MILLION ON REQUEST FOR COMPETITIVE SEALED PROPOSES.

ROUGHLY ABOUT $220 MILLION TO $560 MILLION.

>> SANDOVAL: 220 IS DISCRETIONARY?

>> THAT WOULD BE THE STUFF THAT IS NON-DISCRETIONARY.

INVITATION TO BIDS AND IT'S GOING TO BE -- YOU HAVE SOME PROCUREMENTS THAT ARE QUASI DISCRETIONARY.

ABOUT 568.

>> SANDOVAL: I'M SORRY.

COULD YOU SUMMARIZE THAT AGAIN?

>> SO IN TERMS OF WHAT WE HAVE MORE FLEXIBILITY --

>> AS FAR AS WHAT WE HAVE FLEXIBILITY FOR, YOUR REQUEST FOR PROPOSALS, ABOUT $195 MILLION.

THAT IS GOING TO BE DISCRETIONARY.

SO ROUGHLY ABOUT HALF OF YOUR

[02:05:02]

$568 MILLION IS GOING TO BE DISCRETIONARY.

>> SANDOVAL: OKAY.

IT WOULD BE HELPFUL NEXT TIME WE TALK ABOUT THIS OR BETWEEN NOW AND THEN IF WE SAW SOME OF THESE REQUIREMENTS LINED UP BY DISCRETIONARY VERSUS NON-DISCRETIONARY.

AND I THINK WE CAN MAKE A CLEARER -- GIVE YOU SOME CLEARER DIRECTION.

ANOTHER QUESTION FOR YOU.

HOW DOES PREFERENCE ON PREVIOUS CONTRACTS WITH THE CITY WEIGH INTO THE EVALUATION? I'LL GIVE YOU AN EXAMPLE.

WE HAVE A VERY LARGE PROJECT GOING ON IN DISTRICT 7.

IT'S THE SEELING CHANNEL PROJECT.

IT'S GONE ON FOR A NUMBER OF YEARS, EXTREMELY IMPORTANT.

BUT BECAUSE IT'S SUCH A LONG AND HUGE PROJECT IT'S VERY DISRUPTIVE TO THE COMMUNITY.

AND WE HAVE HAD A NUMBER OF CONCERNS REGARDING THE CUSTOMER SERVICE WITH THE CONTRACTOR, THE PROJECT MANAGER DOESN'T RETURN THE PHONE CALLS BACK.

THERE'S BEEN CONTRACTORS SPEEDING THROUGH THE STREETS AND APPARENTLY NOT COMPLYING WITH THE AGREEMENTS.

SO, YOU KNOW, THE COMMUNITY IS CONCERNED THAT THIS SAME CONTRACTOR IS GOING TO COME BACK.

AND IF WE'RE DOING A LOW BID HOW DO I MAKE SURE THAT THE ENTITY THAT COMES BACK IS GOING TO PROVIDE THE RIGHT CUSTOMER SERVICE THAT WE NEED?

>> RIGHT.

GOOD QUESTION, COUNCILWOMAN.

SO FOR CONSTRUCTION CONTRACTS, EVEN IF IT'S LOW BID, I MEAN, WE CONSIDER THAT RESPONSIBLE LOW BIDDER AND WE DO WEIGH IN PAST PERFORMANCE ON THEM.

SO WE HAVE, IN VARIOUS SITUATIONS IN THE PAST, NOT GONE WITH THE INITIAL APPARENT LOW BIDDER BECAUSE OF THAT DUE DILIGENCE THAT THEY FAILED US IN THE PAST AS A COMMUNITY.

AND NOT TAKING THAT RECOMMENDATION FOR THE LOW BID AND GONE TO THE NEXT LOW BID FOR THAT, IN THAT CASE.

NOW, DISCRETIONARY CONTRACTS, WE DO HAVE THE ABILITY, AN EXAMPLE OF THAT FOR DESIGN PURPOSES.

EVEN THOUGH WE, BY STATE LAW, WE CAN'T DO A LOCAL PREFERENCE, WE ADD IN THERE -- WE DID THIS FIVE YEARS AGO.

WE ADD IN LOCAL KNOWLEDGE.

THAT'S A QUALIFICATIONS BASED SELECTION.

WE WANT THEM TO HAVE KNOWLEDGE OF SAN ANTONIO'S TRAFFIC CONDITIONS, SOIL CONDITIONS.

THAT'S GOING TO BE A QUALIFICATION INTO THEIR SELECTION PROCESS.

AND WE DO OFTEN HAVE POINTS ASSOCIATED WITH THAT IN A DESIGN SELECTION.

>> SANDOVAL: MIKE, DO YOU HAVE ANY MATERIALS YOU COULD SHARE WITH US REGARDING HOW YOU EVALUATE THEIR PERFORMANCE ON PREVIOUS CONTRACTS WITHIN THE CITY OF SAN ANTONIO AND CUSTOMER SERVICE EVALUATIONS?

>> WE DEVELOPED, A NUMBER OF YEARS AGO, A SCORECARD SYSTEM SO WE CAN EVALUATE DESIGN FIRMS AND CONTRACTORS THROUGHOUT THE LIFE OF THE PROJECT AND ACTUALLY HAVE THAT INFORMATION.

AND THEN THAT INFORMATION IS USED WHEN WE'RE LOOKING AT FUTURE PROJECTS AS WELL.

>> SANDOVAL: COULD YOU SHARE THAT WITH OUR OFFICE SO THAT WE CAN SHARE THAT WITH THE COMMUNITY AND THEY CAN HAVE SOME FAITH IN OUR NEXT ROUND OF CONTRACTING? THANK YOU.

AND JUST SOME CLOSING COMMENTS, I WOULD SUPPORT GOING TO THE 5% LOCAL PREFERENCE WHEN WE GO TO THE -- DO WE NEED TO GO TO THE LEGISLATURE FOR THAT?

>> THAT'S ALREADY IN STATUTE SO YOU HAVE THE DISCRETION TO MOVE FROM 3% TO 5%.

IT WOULD JUST TAKE AN ORDINANCE CHANGE.

>> SANDOVAL: IN DISCRETIONARY CONTRACTING OR LOW BID?

>> LOW BID.

>> SANDOVAL: I WOULD BE SUPPORTIVE OF THAT.

REGARDING THE BOUNDARY AND ADDITIONAL CITIES BEING ADDED, I WOULD LIKE TO EXPLORE THE OPTION OF A TIERED SYSTEM WHERE IF YOU ARE A BALCONES HEIGHTS OR CASTLE HILLS YOU WOULD GET MORE POINTS THAN KANSAS BUT MAYBE NOT AS MANY AS IN SAN ANTONIO.

IN TERMS OF THE RESPONSIBLE BIDDER CONSIDERATIONS, I WOULD LIKE US TO CONSIDER OSHA COMPLIANCE.

WE HAVE A LOT OF CONTRACTING THAT HAS TO DO WITH CONSTRUCTION AND VERY HIGH-RISK WORK.

SO THAT WOULD BE IMPORTANT TO ME, AS WELL AS SEXUAL HARASSMENT.

WE HAD SOME CONTRACTOR DOING CAT CALLING TO MY NEIGHBORS ON THE STREET.

AND WE THOUGHT THAT WAS INAPPROPRIATE.

AND ONE LAST THING TO CONSIDER.

CPS IS POSTING SOMETHING ON THEIR WEBSITE IN THE NEXT FEW DAYS REGARDING THEIR PURCHASING POLICIES.

AND THE STATEMENT SAYS CPS ENERGY IS DEDICATED TO ENVIRONMENTALLY CONSCIOUS PRACTICES THAT LEAD TO THE BETTERMENT OF OUR COMMUNITY.

TO THAT END, CPS ENERGY PREFERS TO PURCHASE PRODUCTS AND MATERIALS WHERE FEASIBLE THAT MINIMIZE THE HARMFUL EFFECTS TO THE ENVIRONMENT FROM THEIR PRODUCTION, TRANSPORTATION, USE, AND/OR DISPOSITION.

THIS IS ALIGNS TO OUR BELIEF THAT THE FOCUS ON IMPROVING OUR

[02:10:02]

OVERALL ENVIRONMENTAL FOOTPRINT BENEFITS OUR COMMUNITY AND OUR CUSTOMERS.

SO I WOULD LIKE TO SEE US EXPLORE SOMETHING ALONG THESE LINES AS WELL.

WE'RE IN THE PROCESS OF DEVELOPING THE CLIMATE ACTION PLAN AND I THINK FOR THAT TO BE SUCCESSFUL WE DO NEED TO LOOK AT OUR PURCHASING PROCESS PRACTICES AS WELL.

THANK YOU VERY MUCH AND THANK YOU ALL FOR INDULGING ME IN MY VERY LONG DIATRIBE.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN SANDOVAL.

COUNCILMAN PERRY.

>> PERRY: THANK YOU, SIR.

THANK YOU, TROY FOR THE PRESENTATION.

I'M REALLY HAPPY LOOKING AT THE VETERANS PREFERENCES HERE IN MILITARY CITY, USA WE NEED TO KEEP PUSHING THAT AS MUCH AS POSSIBLE.

I'M HAPPY TO SEE THAT.

ON THE RESPONSIBLE BIDDER STUFF -- AND I UNDERSTAND THIS BUT, YOU KNOW, IT'S ALL GETTING TOWARDS, YOU KNOW, THIS IS ALL PREQUALIFICATIONS AND YOU'RE DOING THE DUE DILIGENCE AND WHAT YOU'RE CURRENTLY DOING.

DO WE HAVE A TRACK RECORD OF HOW MANY FAILURES THERE'S BEEN OVER THE LAST YEAR, FIVE YEARS, TEN YEARS?

>> MIKE IS GOING TO HAVE TO TALK ABOUT THE TCI SIDE.

ON OUR SIDE IT'S BEEN ABOUT TWO TO THREE.

THERE HAVE BEEN SOME INSTANCES WHERE WE HAVE ENTERED INTO CONTRACTS WITH COMPANIES AND, LIKE I MENTIONED EARLIER, IN SEVERAL CASES WE WILL WORK WITH THE COMPANIES TO CURE ANY DEFICIENCIES.

THERE HAS BEEN SOME CONTRACTS WHERE WE COULDN'T REACH AN AGREEMENT THEY ARE NOT DETERMINED RESPONSIBLE FOR BIDDING WHEN WE REISSUE THE BID.

WE KEEP THAT IN OUR CONTRACT FILES AND EACH OF OUR CONTRACT SPECIALISTS, PRIOR TO REISSUING THAT BID, WE GO BACK AND REVISIT THAT.

AND WHEN THEY BID THE SECOND TIME WE DETERMINE IF THEY ARE RESPONSIBLE OR NOT.

>> YES, ON CONSTRUCTION CONTRACTS, OF COURSE WE'RE WORKING CLOSELY WITH THE CONTRACTORS THROUGHOUT.

SO IF THEY HAVE FAILED ON A PROJECT, TYPICALLY WE HAVE THAT DISCUSSION WITH THEM AND, YOU KNOW, IF THEY SAY SHOULD WE BID AGAIN.

WE SAY, NO, NOT FOR A PERIOD OF TIME.

YOU HAVE TO GET YOUR ACT TOGETHER.

WE DON'T HAVE AN OFFICIAL DEBARMENT PROGRAM.

THERE'S A LOT OF LEGALITY ISSUES WITH DEBARRING A COMPANY, BUT WE HAVE ADMINISTRATIVE HEARINGS AND WE CAN TERMINATE THEM DURING A PROJECT WE CAN TERMINATE THE CONTRACTOR.

AND THEN BASICALLY IT'S TURNED OVER TO THEIR BONDING COMPANY.

THAT BONDING COMPANY THEN HIRES A NEW CONTRACTOR TO FINISH THE WORK.

AND SO BUT WE HAVE DONE THAT.

WE HAVE ALSO -- OFTENTIMES IT'S MORE ADVANTAGEOUS TO PUSH THEM TO COMPLETION AND GET THE QUALITY WE NEED.

BUT IF IT WAS THAT PAINFUL OF A PROJECT, DON'T USE THEM AGAIN.

AND WE TALKED ABOUT BEFORE, WE HAVE THE ABILITY TO NOT USE THEM AGAIN BASED ON PREVIOUS WORK, EVEN ON A LOW-BID SITUATION.

>> PERRY: YEAH.

IF WE CAN KIND OF SUMMARIZE THAT FOR THE NEXT TIME THIS COMES TO THE B SESSION TO KIND OF GIVE US A FEEL FOR, OKAY, HERE'S OUR SYSTEM NOW.

HERE'S WHAT'S HAPPENED IN THE PAST AND DO WE REALLY NEED TO MAKE ANY CHANGES? I MEAN, HAS IT BEEN SUCCESSFUL IN THE PAST AND WHERE ARE WE AT TODAY? AND I LOOK AT SLIDE NO. 31 WITH EVERYTHING THAT YOU CAN DO TO PRECLUDE ANY PROBLEMS LIKE THAT DURING THE BIDDING PROCESS OR AWARD PROCESS.

JUST LIKE TO GET THAT OVERALL FEEL FOR WHAT WE HAVE HAD IN THE PAST ON PROJECTS.

I CAN TELL YOU I HAVE THE SAME CONCERNS AS HASN EXPRESSED BY OTHER FOLKS ON OVERREGULATION.

LOOKING AT SLIDE NO. 32, I WOULD HAVE SOME BIG PROBLEMS WITH THAT.

I MEAN, YES WE'RE HERE TO DEVELOP POLICY, BUT ON THE OTHER HAND, WHY ARE PEOPLE COMING TO SAN ANTONIO? WHY ARE BUSINESSES COMING TO SAN ANTONIO? WHY DO WE HAVE A HEALTHY CONSTRUCTION PROGRAM? IT IS AN ECONOMICAL CITY AND THE MORE THAT WE PUT ON A CONTRACTOR AND THE MORE WE PUT ON REQUIREMENTS AND POLICIES THE MORE EXPENSIVE IT'S GOING TO BE TO ACTUALLY EXECUTE THESE PROGRAMS. AND WHERE DOES THAT COST GO? WELL, IT GOES TO THE CITIZENS, YOU KNOW, IN THEIR DAY-TO-DAY PAYING OF BILLS.

IT ALSO MAKES BUSINESSES TAKE A STEP BACK, TAKING A LOOK DO I REALLY WANT TO GO TO SAN ANTONIO? LOOK AT WHAT THEY'RE DOING.

AND LOOK AT THE DIRECTION THEY ARE GOING IN.

SO I'M HAVING A PROBLEM WITH THAT, ESPECIALLY IF WE HAVE HAD

[02:15:02]

A FAIRLY SUCCESSFUL PROGRAM TO DATE.

WHY ARE WE LOOKING FOR ADDITIONAL PROBLEMS HERE? JUST ANOTHER QUESTION ON, YOU KNOW, ABOUT THIS LIVING WAGE BUSINESS, WHEN WE GET COST PROPOSALS IN FROM CONTRACTORS, I KNOW WE ANNOUNCE THE FINAL -- FINAL AWARD COST, BUT DO WE RELEASE THE DETAILED COSTS IN THE PROPOSALS THAT THEY -- THAT THEY SUBMITTED IN A PROPOSAL?

>> TYPICALLY WHEN WE GO TO COUNCIL, WE'LL HAVE THE CONTRACT AND YOU'LL HAVE THE COPY OF THEIR PROPOSAL THAT'S BEEN INTEGRATED INTO IT, TO AN INTEGRATION AGREEMENT, BUT THAT INFORMATION IS AVAILABLE EXCEPT FOR ANY TYPE OF PROPRIETARY INFORMATION IN THOSE PROPOSALS.

>> AND PART OF THAT PROPRIETARY INFORMATION, ISN'T THAT PART OF THEIR COST PROPOSAL?

>> IT COULD BE, BUT PART OF THE COUNCIL ACTION, WE WILL DISCLOSE THE TOTAL CONTRACT PRICE.

TYPICALLY IF WE'RE GOING TO RELEASE ANYTHING ON THE DETAILS, E'LL ACT -- WE'LL ACTUALLY GO TO THE AG AND THE COMPANY PRIOR TO RELEASING THAT.

>> PERRY: AND I JUST WANTED TO PUSH BACK A LITTLE BIT ABOUT THIS BEING PUBLIC -- PUBLIC DOCUMENTS AND KNOWLEDGE ON DOING BUSINESS WITH THE CITY, THAT DOESN'T MEAN THAT YOU JUST -- YOU GET ALL OF YOUR COST PROPOSALS AND EVERYTHING RELEASED TO THE PUBLIC, BECAUSE THAT IS PROPRIETARY ON WHAT YOU'RE BIDDING, AND WHAT YOU'RE -- WHAT YOU'RE SETTING FORWARD AS YOUR PRICE PROPOSAL ON THESE THINGS, BECAUSE THAT IS PART OF YOUR -- YOU KNOW, YOU DON'T WANT YOUR COMPETITORS TO REALLY SEE WHAT YOU'RE BIDDING ON HOW YOU'RE DEVELOPING YOUR PRICE.

YOU KNOW, I CERTAINLY DIDN'T WANT MY PRICE PROPOSALS PUT OUT TO THE PUBLIC WHEN I WAS PUTTING PROPOSALS TOGETHER.

THAT WAS JUST -- THAT'S GIVING -- THAT'S OPENING THE DOORS TO YOUR COMPETITORS AND EVERYBODY ON WHAT YOU'RE BIDDING.

SO I JUST WANTED TO PUSH BACK ON THAT A LITTLE BIT, THAT THIS IS -- SOME OF THIS STUFF IS PROPRIETARY AND WE MIGHT NOT GET THAT DETAIL OUT THERE FOR PUBLIC INFORMATION AND KNOWLEDGE.

SO I SHARE THE SAME CONCERNS ABOUT OVERREGULATION AND BEING AN ADDITIONAL BURDEN ON CONTRACTORS, PARTICULARLY SMALL BUSINESSES, THAT ARE PROPOSING HERE TO WORK FOR THE CITY.

AND I DON'T WANT TO SEE US DO ANYTHING THAT DISCOURAGES OR MAKES IT TOO HARD FOR THESE SMALL BUSINESSES OUT HERE TO CONTINUE TO WORK HERE FOR THE CITY.

AND, YES, THIS IS WITHIN OUR PURVIEW TO CHANGE THOSE POLICIES TO DO THAT, BUT PLEASE, EVERYBODY AROUND THIS TABLE, THINK ABOUT THAT AND MAKE SURE THAT WE GET THAT INPUT FROM BUSINESSES ON WHAT WE'RE GOING TO DO TO THEM AND ARE THEY GOING TO EVEN BE INTERESTED IN DOING BUSINESS FOR US ANYMORE? SO THAT'S WHERE I'M REALLY CONCERNED ABOUT THIS ON -- ON THESE CHANGES IN POLICIES HERE.

SO I LOOK FORWARD TO WORKING WITH YOU SOME MORE AND LOOK FORWARD TO FEEDBACK FROM INDUSTRY AND FROM WORKERS AND EVERYBODY OUT THERE ON WHAT THEY -- WHAT THEY WOULD BE HAPPY TO SEE AND BE ABLE TO LIVE WITH.

THANK YOU, TROY.

THANK YOU, SIR.

>> MAYOR NIRENBERG: THANK YOU, COUNCILMEN PERRY.

COUNCILWOMAN GONZALES?

>> GONZALES: THANK YOU, MAYOR, AND THANK YOU, TROY FOR THE PRESENTATION, AND I'LL TRY AND BE BRIEF HERE, BECAUSE I KNOW WE'VE BEEN HERE A LONG TIME, BUT I JUST -- I WANT TO EXPRESS MY SUPPORT FOR THE LIVING WAGE STANDARD.

YOU KNOW, SAN ANTONIO, FOR A LONG TIME, HAS BEEN KNOWN AS A CHEAP WAGE CITY.

WHEN WE ARE, YOU KNOW, SEEKING BUSINESSES TO COME INTO THE CITY TO CONSIDER SAN ANTONIO, WE DO USE THAT AS A REQUIREMENT, THAT THERE IS AT LEAST A MINIMUM WAGE STANDARD.

SO REQUIRING IT FOR PEOPLE THAT ARE GOING TO DO BUSINESS ALREADY WITHIN THE CITY SHOULDN'T BE SO UNUSUAL OR SURPRISING.

I MEAN, WE'VE BEEN REQUIRING THAT FOR A LONG TIME.

AND AS WE TALK ABOUT OUR CITY BEING SO INCOME-SEGREGATED, WE HAVE TO CONSIDER THIS.

YESTERDAY, IN COUNCILWOMAN VIAGRAN'S COMMITTEE FOR ECONOMIC DEVELOPMENT, ONE OF THE PROFESSORS MADE A COMMENT THAT A CERTAIN SEGMENT OF OUR POPULATION IS NOT CONTRIBUTING SUFFICIENTLY TO THE ECONOMY, AND THAT COSTS US ABOUT, AT LEAST A BILLION DOLLARS IN GDP.

SO IF WE COULD INVEST IN THOSE PEOPLE WHO ARE NOT EMPLOYED, BECAUSE WE DON'T HAVE SUFFICIENT WAGES FOR PEOPLE, AND GET THEM ACTIVE AND WORKING IN OUR ECONOMY, IT COULD COMPLETELY TRANSFORM THE WAY OUR CITY DEVELOPS.

SO I WOULD CONSIDER THAT WE -- I WOULD SUPPORT THAT WE --

[02:20:02]

IN AUDIO] -- AND THE MARKET WILL TO SOME EXTENT TAKE CARE OF THAT.

WE KNOW THAT UNEMPLOYMENT IS VERY LOW, AND SO JUST TO GET PEOPLE ON BOARD, YOU'RE GOING TO HAVE TO PAY A CERTAIN WAGE ANYWAY.

AND THAT'S SOMETHING WE -- I THINK WE CAN PARTICIPATE WITH THOSE LARGE EMPLOYERS, WHAT IS -- FIRST OF ALL, WHAT IS THE PREVAILING WAGE IN THE INDUSTRY, AND IS THAT A LIVING WAGE.

AND HOW CAN WE CONTINUE TO INCREASE WAGES FOR EVERYONE.

AND INCLUDING SOME TRAINING ALONG WITH THAT, SO WE KNOW THAT THERE'S A CERTAIN SEGMENT OF OUR POPULATION THAT PROBABLY CANNOT COMMAND A CERTAIN WAGE BECAUSE THEY'RE VERY LOW SKILLED, AND SO I HOPE THAT THAT CAN BE CONSIDERED AS WELL AS PART OF THE -- NOT TO PUT THAT ON THE BURDEN OF THE CONTRACTOR, BUT TO PUT THAT BURDEN ON US AS THE CITY TO MAKE SURE THAT PEOPLE ARE TRAINED SUFFICIENTLY TO GET THOSE JOBS.

SO -- AND ANOTHER QUESTION I HAVE IS REGARDING THE RESPONSIBLE BIDDERS' PROGRAM.

SO I CAN THINK OF A COUPLE OF PROJECTS IN MY DISTRICT THAT HAVE GONE BAD BECAUSE OF A CONTRACT -- AN ISSUE WITH A CONTRACTOR.

AND ULTIMATELY THE COMMUNITY BLAMES ME, THE COUNCILMEMBER, FOR NOT HAVING SUFFICIENT OVERSIGHT OVER THAT PROJECT.

AND WHEN THINGS REALLY START TO GO BAD IN THE COMMUNITY SH I'M SURE THEY CALL YOU, MIKE, BUT THEY CALL ME, TOO.

AT HOME, ON WEEKENDS AND SAYING WHY IS MY STREET NOT FIXED.

LANDS -- DO -- AUDIO] -- DO THAT DUE DILIGENCE, I KNOW IT HAPPENED AT ELMEN ELMENDORF LAKE, THERE'S A BIG PROJECT THAT'S A SAWS PROJECT THAT'S BEEN DELAYED TWO YEARS NOW.

I'VE BEEN WITH SAWS AS WELL TRYING TO OVERCOME THAT, BUT THE COMMUNITY AT LARGE DOESN'T NO E THAT THAT'S NOT THE CITY -- THEY DON'T KNOW WHO'S DOING THE WORK, BUT THE ONE WHO GETS THE CALL IS ME.

SO I FEEL VERY RESPONSIBLE FOR MAKING SURE OUR CONTRACTORS ARE DOING THEIR WORK, THAT ARE RESPONSIBLE BIDDERS, THAT WHEN THEY HAVE FAILED, THAT THEY'RE IMMEDIATELY REPLACED.

AND SO THAT'S WHERE WE HAVE TO MAKE SURE THAT WE HAVE ENOUGH BIDDERS THAT WHEN ONE PROJECT GOES BAD, WE'RE NOT SITTING AROUND WAITING FOR SOMEBODY ELSE TO COME AND FILL THOSE CONTRACTORS.

IS THERE -- AND HOPEFULLY THERE'S ENOUGH -- ENOUGH CONTRACTORS TO COME BACK AND FILL THOSE JOBS.

>> SO, COUNCILWOMAN, THERE'S A FEW THINGS THAT CAN LEAD A PROJECT DOWN A BAD PATH.

SOMETIMES THERE'S DESIGNER RORS, SOMETIMES THERE'S UNFORESEEN THINGS THAT ARE UNCOVERED IN THE GROUND THAT CREATE PROBLEMS, LIKE UTILITIES THAT WERE ABANDONED A LONG TIME AGO BUT NOBODY KNEW THEY WERE STILL THERE.

AND SOMETIMES IT'S THE CONTRACTOR THAT'S MADE A MISTAKE OUT THERE AND CONTINUES TO MAKE A MISTAKE.

WHETHER IT -- WEATHER IMPACTS PROJECTS AS WELL, OBVIOUSLY.

BUT WHATEVER IT IS, WE WORK THROUGH IT AND AGAIN -- WE CAN TERMINATE CONTRACTORS.

WE CANNOT SELECT NECESSARILY -- IF WE JUST FIRE THE CONTRACTOR AND LEAVE THEM COMPLETELY OFF THE HOOK, WHICH MEANS THEY'RE SURETY COMPANY, THE BONDING COMPANY THAT'S THERE TO ENSURE THAT THE PERFORMANCE IS DONE RIGHT, WE'VE JUST LEFT THEM COMPETELY OFF THE HOOK, THAT WOULD BE A PROBLEM.

SO BASICALLY WE CALL FOR THEIR BOND.

WE PULL THEIR BOND SAYING WE'RE DONE WITH YOU, WE'RE GOING TO YOUR BONDING COMPANY, AND NOW THE BONDING COMPANY HAS TO REPACKAGE THE REST OF THE WORK, BID IT OUT AND GET A NEW CONTRACTOR OR SOMETIMES THEY HIRE THE SAME CONTRACTOR BACK TO FINISH THE WORK.

AND THAT'S THE SURETY COMPANY'S DISCRETION ON HOW THEY GET THE JOB DONE.

SO THERE IS A VARIETY OF CONTRACTORS OUT THERE THAT WE HAVE, AND MORE -- WE'VE INCREASED THE NUMBER OF FIRMS SIGNIFICANTLY OVER THE LAST 10 YEARS THAT ARE COMPETING FOR THE PROJECTS, WHICH IS GOOD.

BUT THAT'S KIND OF THE PROCESS.

>> GONZALES: WELL, I KNOW, YOU KNOW, WHILE I THINK COUNCILMAN PERRY ASKED YOU THE QUESTION HOW MANY TIMES, I KNOW HOW MANY TIMES IT'S HAPPENED IN MY DISTRICT, AND I DON'T KNOW IF THAT MEANS ONE CONTRACTOR OR MULTIPLE CONTRACTORS, BUT IT'S DEFINITELY HAPPENED MORE THAN TWICE, SO -- AND I WOULD JUST LIKE FOR US TO.

>> FRISBIE: SURE.

>> GONZALES: CONTINUE THAT PROGRAM, IT'S ALSO HAPPENED ON THE PRIVATE SECTOR WHICH THEN ENCOURAGES ME TO REMIND THE PRIVATE SECTOR THAT THEY SHOULD ALSO BE DOING RESPONSIBLE BIDDER PROGRAMS OR CHECKING THE STATUS OF THEIR PARTNERS BEFORE THEY ENGAGE, BECAUSE THEN THE COMMUNITY'S INCREDIBLY DISAPPOINTED WHEN THOSE PROJECTS FAIL BECAUSE THERE WAS NOT SUFFICIENT BACKGROUND CHECK AND WHO ALL THE PEOPLE YOU'RE DOING BUSINESS WITH.

>> FRISBIE: ONE OF THE DUE DILIGENCE STEPS THAT WE TAKE, WE WELCOME NEW CONTRACTORS HERE AS

[02:25:01]

LONG AS THEY'RE LICENSED AND SO FORTH, BUT IF THEY'RE NEW AND THEY'RE APPARENT LOW BIDDER OR SUCCESSFUL THROUGH A PROCESS, THEN WE MEET WITH THEM, WE HAVE AN ADMINISTRATIVE HEARING WHERE THEY NEED TO COME -- AUDIO] -- HOW YOU'RE GOING TO GET IT DONE WITH QUALITY, SO THAT'S RIGHT OUT OF THE GATE BEFORE THEY START ANY WORK OR BEFORE WE EVEN COME TO COUNCIL FOR APPROVAL.

>> GONZALES: WELL, I THINK THOSE ARE VERY IMPORTANT EVALUATIONS THAT WE CONTINUE TO DO.

AND THEN JUST, YOU KNOW, MY LAST COMMENT, COUNCILWOMAN VIAGRAN ALSO TALKED ABOUT THE BLACKOUT PERIODS FOR CERTAIN PROPOSALS, AND WHILE I DON'T NECESSARY -- I DON'T KNOW THAT IT'S NECESSARY EVERY TIME, I MEAN, THERE HAVE BEEN TIMES THAT WE'VE HAD VERY LARGE CONTRACTS AND THEY'VE LASTED A VERY LONG TIME.

AND SO BECAUSE WE HAVE HAD TURNOVER ON THE COUNCIL, I FEEL LIKE -- I THINK I'VE SAT ON EVERY COMMITTEE NOW, I'VE BEEN HERE LONG ENOUGH THAT I'VE HAD THE OPPORTUNITY TO SIT ON EVERY COMMITTEE, SO I'VE SEEN IT IN SOME FORM OR ANOTHER, BUT NOT EVERYBODY HAS.

SO IF WE NEED MORE TIME TO DISCUSS PARTICULAR BIDS, ESPECIALLY IF THEY'RE LARGE, I BELIEVE THAT WE SHOULD HAVE THE OPPORTUNITY TO DO THAT.

AND SO AS WE ARE MAKING THESE DECISIONS, I REALLY BELIEVE VERY MUCH THAT IT IS OUR RESPONSIBILITY AS COUNCILMEMBERS TO DO OUR OWN DUE DILIGENCE AS WE'RE MAKING RECOMMENDATIONS.

AND WHILE, YOU KNOW, WE HAVE GREAT FAITH IN THE STAFF TO PRESENT A RECOMMENDATION, ULTIMATELY THE BUCK STOPS HERE, SO WE'VE GOT TO BE PREPARED TO DEFEND OUR POSITION AT -- WITH ANY CONTRACT DECISION THAT WE MAKE.

AND SO I APPRECIATE ALL OF THE WORK THAT YOU-ALL DO, BUT I THINK AS COUNCILMEMBERS WE'RE ALWAYS RESPONSIBLE FOR THAT FINAL VOTE.

SO IF WE NEED MORE TIME OR WE WANT MORE QUESTIONS OR WE BELIEVE THAT PERHAPS WE HAVEN'T SEEN THE BEST THAT THERE IS AVAILABLE, I THINK WE SHOULD ALWAYS HAVE THE OPPORTUNITY TO KICK IT BACK AND TRY IT AGAIN.

SO -- AND WE'VE DONE IT A FEW TIMES, BUT I THINK THAT'S PART OF OUR RESPONSIBILITY AS COUNCILMEMBERS, AS PHYSICAL STEWARDS OF THE PUBLIC'S MONEY, WE SHOULD ALWAYS HAVE THE OPPORTUNITY TO DO THAT.

I THINK THAT'S ALL THE COMMENTS I HAVE, AND I ALSO SUPPORT THIS IDEA OF INCREASING THE DISCRETIONARY BIDS TO 5%, IF IT MEANS THAT THERE IS LOCAL PARTICIPATION.

I THINK IT GOES BACK TO MY SUPPORT OF SMALL BUSINESS, MY SUPPORT OF OUR LOCAL ECONOMY, KNOWING THAT THE MORE WE SUPPORT OUR LOCAL ECONOMY, THE MORE THAT WE INVEST IN OUR CITIZENS BY PROVIDING THEM HIGH WAGES, AND GIVING THEM OPPORTUNITY FOR TRAINING AND WORKFORCE TRAINING AND EDUCATIONAL ACTIVITIES, EVERYBODY CAN DO BETTER.

AND THE BUSINESS COMMUNITY BENEFITS, ALL OF OUR CITIZENS BENEFIT, AND I THINK THIS IS ONE OF THE MOST IMPORTANT THINGS WE DO IS DISCUSS THE CITY'S BUDGET.

SO THANK YOU.

TROY, THANK YOU.

>> MAYOR NIRENBERG: THANK YOU, COUNCILWOMAN GONZALES, AND TROY AND DAN AND I DON'T KNOW WHO ELSE GAVE US A PRESENTATION AT THIS POINT.

BUT THANK YOU VERY MUCH FOR THE PRESENTATION.

I WOULD VENTURE TO SAY THAT ALMOST ALL MEANINGFUL MUNICIPAL POLICY MAKING OVER THE YEARS HAS HAPPENED IN CONVERSATION OUT IN THE COMMUNITY THAT EVENTUALLY MAKES ITS WAYS TO TABLES NOT UNLIKE THIS, THAT EVENTUALLY LEAD TO COUNCILMEMBERS ASKING FOR POLICY DISCUSSION AT THE COUNCIL THAT LOOKS LIKE THIS, SO TO REITERATE WHAT COUNCILMAN SALDAÑA SAID, AND PERHAPS LOWER PEOPLE'S BLOOD PRESSURE AROUND THIS TABLE AND IN THE ROOM, THIS IS THE BEGINNING OF THE PROCESS.

IN FACT, IT IS THE STAFF BEING RESPONSIVE TO DIRECTION GIVEN FROM THE COUNCILMEMBERS TO, YOU KNOW, LOOK AT POLICIES AND SEE HOW WE CAN ENHANCE WHAT WE WANT TO SEE IN OUR CITY'S PROCUREMENT PRACTICE.

AND SOME OF ITS CHAOTIC, BUT OVER THE LAST SEVERAL MONTHS, WE'VE TALKED ABOUT HOW TO DO IT THE RIGHT WAY, AND IT'S IN OPEN SESSION, PUBLICLY, JUST LIKE THIS, WITH STAKEHOLDER INPUT AND TAKING OUR TIME TO GET IT RIGHT.

SO ANYONE CONCERNED THAT IT'S GOING TO BE A RUBBER STAMP OR THAT WE'RE GOING TO GET TO A CONCLUSION BEFORE WE'RE READY FOR ONE, SHOULD REST ASSURED THAT WE'RE GOING TO DO THIS THE RIGHT WAY, AND THIS IS EXACTLY HOW THE PROCESS OUGHT TO BEGIN.

SO THANK YOU, TROY AND MIKE, I KNOW YOU WERE UP THERE, TOO.

[Executive Session]

THANK YOU, MIKE, FOR THE PRESENTATION.

ALL RIGHT.

AT THIS TIME, IT'S NOW 4:41 P.M.

ON THIS SEVENTH DAY OF MARCH, 2018.

AND PURSUANT TO THE AUTHORITY GRANTED BY CHAPTER 551 OF THE TEXAS GOVERNMENT QUOTE THE TEXAS OPENS MEETINGS ACT, THE CITY COUNCIL WILL NOW RECESS INTO EXECUTIVE SESSION TO DISCUSS ECONOMIC DEVELOPMENT NEGOTIATIONS PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.087, ECONOMIC DEVELOPMENT, THE PURPOSE, EXCHANGE, LEASE OR VALUE OF REAL PROPERTY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.072, REAL PROPERTY,

[02:30:01]

EVALUATION AND DUTIES OF PUBLIC OFFICERS OR EMPLOYEES AND ANY RELATED LEGAL ISSUES PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.074, PERSONNEL MATTERS, AND PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071, CONSULTATION WITH ATTORNEY AND LEGAL ISSUES RELATED TO THE COMPETITIVE MATTERS OF CPS ENERGY AS A PUBLICLY OWNED UTILITY PURSUANT TO TEXAS GOVERNMENT CODE SECTION 551.071, CONSULTATION WITH ATTORNEY.

SESSION.

[Ceremonial Recognitions]

>> MAYOR NIRENBERG: NO ACTION WAS TAKEN.

I APOLOGIZE FOR THE ALARMS, WE WERE TOLD BY SECURITY, EVERYTHING WAS FINE BUT THE FIRE DEPARTMENT DOES HAVE TO COME AND SHUT OFF THE FALSE ALARM. WE'LL GO AHEAD AND GET STARTED SINCE EVERYONE IS ASSEMBLED AND WE DO HAVE A COUPLE OTHER COUNCILMEMBERS THAT WILL BE JOINING US AS WELL.

WE HAVE A COUPLE CEREMONIAL ITEMS TONIGHT AND WE'LL START WITH THE COMMUNICATION ARTS HIGH SCHOOL DIGITAL MEDIA STUDENTS.

THE SOPHOMORE DIGITAL MEDIA STUDENTS OF COMMUNICATION ARTS HIGH SCHOOL LED BY THEIR TEACHER JILL BARTON POURED THEIR HEARTS AND CREATIVE ENERGIES INTO A PROBABILITY TO HELP TEXANS DEVASTATED BY HURRICANE HARVEY BY USING THEIR PHOTOSHOP SKILLS.

THE STUDENTS RESTORED WATER THE-DAMAGED PHOTOS AND MEMORIES RETURNING SOME HOPE TO SOME PEOPLE WHO STILL HAVE A LONG WAY TO GO TO REBUILD.

THE STUDENTS TRAVELED TO THE HOUSTON AND PORT ARANSAS AREAS TO PERSONALLY DELIVER THE RESTORED PHOTOS TO THEIR OWNERS.

I'D LIKE TO CALL FORWARD NOW MRS. JILL BARTON, THE COMMUNICATION STUDENTS TEACHER AT COMMUNICATION ARTS HIGH SCHOOL.

MRS. BARTON, AT THE VERY LEAST, YOU'LL KNOW THIS IS GOING TO BE A VERY MEMORABLE CEREMONY FOR YOU, BUT I KNOW THAT YOU HAVE SOME COMMENTS.

I'D LIKE TO READ A CITATION, BUT FIRST LET'S SHOW A VIDEO TO THE AUDIENCE.

WE'VE GOT A VIDEO.

THIS IS SOMEONE'S HOME AND NOW IT'S JUST RUBBISH.

[KNOCKING]

>> HI, ARE YOU GLORIA?

>> OH, MY GOODNESS.

THIS PAST YEAR WE'VE SEEN A LOT OF NATURAL DISASTERS AND FEEL REALLY POWERLESS WHEN IT COMES TO HELPING PEOPLE THAT ARE IN NEED.

>> IT WAS TERRIFYING.

IT WAS A NIGHTMARE COME TRUE.

WE WERE LOOKING AROUND TRYING TO GATHER THINGS UP TO SEE WHAT WE COULD SAVE, AND BEFORE WE KNEW IT, EVERYTHING WAS DESTROYED AND GONE.

>> THE WATER THE STARTED RISING TO OUR WAIST, IT CAME THAT QUICK.

I PRAYED AND PRAYED HOPING THAT IT WOULD END AND THAT WE WOULD MAKE IT.

IT WAS THE MOST TERRIFYING THING I'VE EVER EXPERIENCED.

PICTURES.

>> MY MOM PASSED AWAY WHEN I WAS NINE YEARS OLD.

HER NAME WAS AMY.

AND THESE ARE THE ONLY MEMORIES THAT I HAVE OF HER LEFT.

>> THIS IS OF ME AND MY SIBLINGS, IT'S THE ONLY ONE I HAVE LEFT OF MY SIBLINGS, OF ALL OF US TOGETHER AT ONE TIME.

>> THAT'S MY MOM.

I CAN'T GO A DAY WITHOUT LOOKING AT THIS PICTURE.

I TRIED SO HARD TO SAVE IT, IT'S GOING, IT'S FADING AWAY.

>> ARE YOU KATHY? [KNOCKING]

>> DOMIGA? DOMINGA?

>> YEAH.

>> WE HEARD THAT YOU LOST A LOT OF VALUABLE ITEMS IN HURRICANE HARVEY AND WE JUST WANTED TO GIVE YOU HOPE.

WE'RE HERE TO GIVE YOU A LITTLE SURPRISE.

>> WOW!

>> OH, MY GOODNESS! THANK YOU.

[CRYING]

>> IT'S BEAUTIFUL.

IT LOOKS SO PRETTY.

>> THANK YOU.

>> I THOUGHT I'D LOST IT ALL.

[02:35:02]

THAT MEANS THE WORLD TO ME.

>> YOU'RE AWESOME!

>> KEEP MY MOM'S PICTURE BY ME EVERYWHERE I GO.

>> IT WAS SUCH AN HONOR TO WORK ON THAT PHOTO FOR YOU, AND I'M SO HAPPY IT BRINGS YOU SO MUCH JOY.

>> I FEEL REALLY BLESSED.

>> THIS MEANS THE WORLD TO ME.

>> IT BRINGS A LOT OF HOPE, JUST TO KNOW THAT THESE CAN BE RESTORED, SO I KNOW I CAN BE RESTORED BACK TO NEW, YOU KNOW.

[APPLAUSE]

>> MAYOR NIRENBERG: ALL RIGHT.

WELL, MRS. BARTON AND TO ALL THE STUDENTS HERE FROM THE COMMUNICATIONS ARTS HIGH SCHOOL, THAT WAS AN EXTRAORDINARY VIDEO.

SO NOT ONLY PHOTOSHOP, BUT ALSO VIDEO PRODUCTION, YOU-ALL ARE CLEARLY EXTRAORDINARILY TALENTED.

I'D LIKE TO PRESENT YOU WITH A CRYSATION NOW WITH -- CITATION NOW FROM THE CITY OF SAN ANTONIO.

IN RECOGNITION OF YOUR PHOTO RESTORATION PROJECT, THE FUTURE IS YOURS THAT HELPED RESTORE HOPE TO TEXANS DEVASTATED BY HURRICANE HARVEY.

THIS HONOR IS A TESTAMENT OF YOUR WILLINGNESS TO USE YOUR INNOVATIVE AND PHOTOSHOP SKIPS TO RESTORE DAMAGED PHOTOS BACK TO THEIR PRICELESS MEMORIES.

YOUR DEDICATION TO EXPANDING YOUR CREATIVE ENERGIES TO HELP OTHERS HAS NOT GONE UNNOTICED AND IS WORTHY OF COMMENDATION.

NOW, THEREFORE, I, RON NIRENBERG, MAYOR OF THE CITY OF SAN ANTONIO AND ON BEHALF OF THE CITY COUNCIL PROUDLY EXTEND SINCERE APPRECIATION TO THE STUDENTS, TEACHERS AND PARENTS OF DIGITAL MEDIA TEAM ON THIS OUTSTANDING AND SELFLESS ACT OF KINDNESS, AND THIS IS SIGNED THE SEVENTH DAY OF MARCH, 2018.

CONGRATULATIONS, YOU-ALL.

[APPLAUSE]

>> MAYOR NIRENBERG: AND SO I KNOW -- IF YOU'D LIKE TO ADDRESS THE AUDIENCE, AS WELL AS OUR COUNCIL, WE'D BE VERY GRATEFUL.

>> GOOD EVENING.

I AM BRITTANY GLEN, I'M THE ASSISTANT PRINCIPAL TO THESE LOVELY STUDENTS.

WE ARE FROM COMMUNICATION ARTS HIGH SCHOOL, AND OUR WHOLE PURPOSE AT OUR SCHOOL IS TO TEACH REAL-WORLD EVENTS, AND IT DOESN'T GET ANY MORE REAL WORLD THAN THIS.

SO WE'RE VERY PROUD OF THEM AND THANK YOU FOR HAVING US TONIGHT.

[APPLAUSE]

>> MAYOR NIRENBERG: I KNOW WE HAVE COUNCILMEMBERS WHO WOULD LIKE TO SAY HOW MUCH WE APPRECIATE WHAT YOU'VE DONE.

I THINK THAT SOMETIMES WHEN YOU LOSE EVERYTHING AND WE'VE SEEN OUR NEIGHBORS IN THAT SITUATION, BEING ABLE TO GIVE THEM BACK THEIR MEMORIES IS SOMETHING THAT IS -- IS -- COMMUNITY, ONE THAT CARES FOR ITS NEIGHBORS, YOU'VE BEEN THE BEST EXAMPLES OF THAT.

I THINK WE CAN SEE IN OUR CITY, SO THANK YOU SO MUCH FOR WHAT YOU'VE DONE AND MAKING OUR CITY PROUD.

>> MAYOR PRO TEM: GO AHEAD AND TAKE COUNCILMEMBER COMMENTS NOW.

COUNCILMEMBER PERRY.

>> PERRY: YES, I JUST WANT TO PASS ON MY THANKS TO YOU FOR DOING THAT, FOR GOING DOWN THERE AND TO ME, THIS IS ALL PART OF BEING TEXAN.

THIS IS TEXAS HELPING TEXAS, AND TO ME, THAT'S VERY IMPORTANT.

AND I AM JUST SO PROUD OF YOU THAT YOU STEPPED UP TO DO THIS, TO HELP OUT SOMEONE THAT HAD BIG NEEDS OUT IN THE COMMUNITY.

SO THANK YOU VERY MUCH.

>> MAYOR PRO TEM: THANK YOU COUNCILMEMBER TEXAS.

COUNCILMEMBER PERRY, WE APPRECIATE YOUR COMMENTS.

WE'LL GO NOW TO COUNCILMEMBER SANDOVAL VANCE.

>> SANDOVAL: THANK YOU MAYOR PRO TEM.

I WANT TO THANK YOU FOR WHAT YOU DID.

I AM EXTREMELY PROUD OF YOU BEING A SAN ANTONIAN AND YOU DOING THE WORK THAT YOU DID.

WE SEE FEEL-GOOD VIDEOS LIKE THAT ON FACEBOOK AND YOU CAN SCROLL THROUGH THEM AND YOU FIND 100 -- MANY OF THEM AT ANY TIME, BUT IT'S SO DIFFERENT WHEN YOU SEE THE ACTUAL PEOPLE IN THE VIDEO RIGHT HERE WITH YOU, THE ONES THAT MADE THE DIFFERENCE, SO I FOUND IT VERY MOVING AND THANK YOU FOR YOUR WORK.

IT WAS A BEAUTIFUL THING THAT YOU DID.

>> MAYOR PRO TEM: THANK YOU, COUNCILMEMBER SANDOVAL.

AND I WILL WRAP UP COUNCILMEMBER COMMENTS BY SAYING I AM A JOHN JAY GRADUATE, SO TAFT IS -- AND COMMUNICATION ARTS ARE NOT ALWAYS AT THE TOP OF MY LIST, BUT HAVEN'T BEEN, BUT YOU'VE OFFICIALLY CHANGED THAT NOW.

ALL COURTESY TO JOHN JAY HIGH

[02:40:03]

SCHOOL, I'M GLAD THERE WAS A TWO-MINUTE PAUSE BETWEEN THAT VIDEO AND WHEN HAD TO TALK, BECAUSE I WAS CHOKED UP.

DO YOU HAVE PARENTS HERE THIS EVENING? PARENTS, RAISE YOUR HANDS.

SOMETHING FOR THE PARENTS.

[APPLAUSE]

>> MAYOR PRO TEM: I'M FLOORED BY WHAT I SAW, THAT WAS ONE OF THE MOST TOUCHING THINGS THAT WE'VE SEEN -- THAT I'VE SEEN SINCE MY TIME UP HERE IN JUNE.

I'M VERY PROUD OF YOU.

THE SCHOOL -- YOUR SCHOOL YEAR, THE COMMUNICATION ARTS WAS IN MY DISTRICT, I'M YOUR COUNCILMEMBER AND I'M VERY PROUD OF YOU.

AND TO YOUR PARENTS, YOU'VE DONE ONE HECK OF A JOB AND RAISED A BAR OF YOUNG MEN AND WOMEN THAT WHEN YOU GIVE YOURSELF WHEN YOU THINK OF SOMEBODY ELSE, I SAW OUR CITY PHOTOGRAPHER RUNNING AROUND, IT LOOKED LIKE HE WAS GOING TO BREAK DOWN CRYING, HE KNOWS HOW IMPORTANT PICTURES ARE TO PEOPLE IN THEIR LIVES.

YOU CHOSE SOMETHING SMALL IN STATURE BUT A VERY BIG IMPACT.

THANKS TO EVERY ONE OF YOU FOR BEING HERE.

THANK YOU FOR BEING HERE, WE REALLY APPRECIATE IT.

>> MAYOR NIRENBERG: THANK Y'ALL VERY MUCH.

AND I THINK WE'LL GET A PICTURE WITH THE CITATION.

[APPLAUSE]

>> MAYOR NIRENBERG: I KNOW THE PARENTS ARE AWFULLY PROUD, AND CONGRAT LITIONS TO YOU AS WELL.

-- CONGRATULATIONS TO YOU AS WELL.

THE SECOND CEREMONIAL ITEM TODAY IS FOR THE CESAR CHAVEZ MARCH FOR JUSTICE.

THE 22ND ANNUAL CESAR CHAVEZ MARCH FOR JUSTICE WILL BE HELD ON SATURDAY MARCH 24TH, 2018.

THOUSANDS OF CITIZENS WILL COME TOGETHER TO CELEBRATE THE LEGACY IN LIFE OF AN OUTSTANDING AMERICAN.

CESAR CHAVEZ FOUNDED THE NATIONAL FARM WORKERS ASSOCIATION AND PER SEVERED TO ENSURE THAT FARMERS RECEIVED BENEFITS AND THAT INDIVIDUALS WOULD NOT HAVE TO LIVE OR WORK IN UNDESIRABLE CONDITIONS.

THE EVENT WILL ALSO COMMEMORATE THE MEMORY OF THE LATE JAIME P.

MARTINEZ, FOUNDER OF THE LOCAL MARCH, AND HIS TIRELESS EFFORTS TO FIGHT FOR JUSTICE FOR ALL.

RECEIVE THE PROCLAMATION, I'LL READ IT TO YOU NOW.

WHEREAS THE CESAR CHAVEZ LEGACY AND EDUCATIONAL FOUNDATION WILL HOST THE 22ND ANNUAL CESAR CHAVEZ MARCH FOR JUSTICE ON MARCH 24TH, 2018, TO REMEMBER AND CELEBRATE THE LIFE OF AN OUTSTANDING AMERICAN WHO BATTLED FOR ECONOMIC AND SOCIAL JUSTICE AND WHEREAS CESAR E. CHAVEZ, A MAN OF HUMBLED BEGINNINGS FOUNDED THE NATIONAL FARM WORKERS ASSOCIATION TO BRING DIGNITY AND RESPECT TO FARM WORKERS AND ASSURE THAT NO ONE WOULD HAVE TO LIVE OR WORK IN UNDESIRABLE CONDITIONS AND WHEREAS HIS INFLUENCE EXTENDED FAR BEYOND AGRICULTURE, AND THROUGH THIS PERSEVERANCE, THEY RECEIVED -- AND WHEREAS THE LATE HA ICIALGME P. MARTINEZ FOUNDER OF THE LOCAL MARCH, TO ENERGIZE PEOPLE WITH THE POWER OF CIVIC ENGAGEMENT AND TO PROVIDE A BEAUTIFUL TRADITION FOR ALL CITIZENS TO ENJOY TODAY AND GENERATIONS TO COME.

NOW THERE, I, RON NIRENBERG, MAYOR OF THE CITY OF SAN ANTONIO IN RECKON IN ADDITION HEREOF DO HERE BY CLAIM MARCH 7TH, 2018, TO BE CESAR CHAVEZ MARCH FOR JUSTICE DAY.

>> THANK YOU, MAYOR.

[APPLAUSE]

>> THANK YOU VERY MUCH.

YOU HIT IT RIGHT AT THE CENTER, A MARCH FOR ALL SAN ANTONIANS TO ENJOY.

THIS IS MARCH NOT JUST FOR THE

[02:45:01]

WEST SIDE, BUT THIS IS MARCH FOR ALL FAMILIES FROM ALL PARTS OF OUR CITY TOGETHER TO PAY TRIBUTE TO THE LIFE AND LEGACY OF CESAR CHAVEZ BUILDING BRIDGES FOR EDUCATION, NONVIOLENCE AND SOCIAL JUSTICE.

THAT IS THE THEME FOR THIS YEAR'S MARCH.

AS MANY OF YOU KNOW, SAN ANTONIO HAS A LONG HISTORY OF RECOGNIZING AND CELEBRATING THEIR HEROES FROM OUR MILITARY VETERANS TO DR. MARTIN LUTHER KING AND NOW AFTER 21 YEARS STRONG, GOING INTO OUR 22ND YEAR, CESAR CHAVEZ.

AND THAT TRADITION CONTINUES ONLY BECAUSE PEOPLE COME TOGETHER AS YOU SEE HERE TODAY, ORGANIZATIONS THAT HAVE COME TOGETHER, EXCITED ABOUT WHAT'S TO COME.

I SPOKE TO ANDRES CHAVEZ, THE GRANDSON OF CESAR CHAVEZ, HE'S COMING, HE'S EXCITE, HE'S HEARING ABOUT ALL THE EXCITEMENT THAT'S BEEN GENERATED HERE OVER THE LAST SEVERAL MONTHS, AND SO I'LL BE BRIEF IN MY COMMENTS HERE, BUT I WANT TO MAKE SURE THAT EVERYBODY KNOWS, THAT ON SATURDAY, MARCH 24TH, THIS MARCH IS GOING TO BE A MARCH OF UNITY.

THIS IS A MARCH FOR EVERYBODY TO COME TOGETHER FOR ONE COMMON PURPOSE, NO MATTER WHAT PART OF TOWN YOU COME FROM OR YOUR BACKGROUND, THIS IS FOR ALL TO ENJOY.

SO I'M GOING TO BRIEFLY ALSO CALL A DAY OF ACTION, IF YOU SEE ON THE SCREEN HERE, YOU SEE THE MARCH, AND THERE'S A CALL OF ACTION, CESAR CHAVEZ BELIEVED IN DAYS OF SERVICE.

I'D LIKE TO BRING UP MY FRIEND, MARIO BLEDO, JR., FROM THE SAN ANTONIO FOOD BANK, AS WE HAVE THE YES WE CAN CAMPAIGN IN CONJUNCTION WITH THE CESAR CHAVEZ MARCH.

MARIO?

>> THANK YOU.

THANK YOU, MAYOR AND CITY COUNCIL.

ON BEHALF OF THE SAN ANTONIO FOOD BANK WE'RE JUST THANKFUL FOR OUR PARTNERSHIP WITH THE CESAR CHAVEZ MARCH.

IT OBVIOUSLY MEANS A LOT WHEN YOU THINK ABOUT CESAR CHAVEZ'S LIFE AND CELEBRATING THAT LIFE.

HE TOOK UP THE CHALLENGES FOR FOLKS THAT WERE DISENFRANCHISED, UNDERPRIVILEGED, DENIED INDIVIDUALS.

AND WHEN YOU THINK ABOUT THE YES WE CAN FOOD DRIVE, THAT CAMPAIGN, WE'RE ABLE TO RAISE FOOD AND RAISE AWARENESS ON BEHALF OF THE ONE OF FOUR KIDS AND ONE OF FIVE ADULTS THAT ARE FOOD-INSECURE IN OUR COMMUNITY.

SO WE ARE THANKFUL FOR THE PARTNERSHIP AND LOOK FORWARD TO MARCH 24TH.

>> MY FATHER HAD A VISION FOR THIS MARCH TO BE INCLUSIVE OF THE YOUNG PEOPLE.

THIS IS REALLY WHAT -- BEFORE HE PASSED LAST JULY, HE SHARED WITH ME THAT HE WANTED TO MAKE SURE THAT THIS -- THIS MOVEMENT WOULD INVOLVE OUR YOUTH, AND THAT'S WHAT YOU'RE GOING TO SEE ON MARCH 24TH.

BEFORE I INTRODUCE A COUPLE OF YOUNG PEOPLE HERE FROM OUR COMMUNITY, I DO WANT TO RECOGNIZE -- AGAIN, I MENTIONED ORGANIZATIONS SUCH AS LULAC, HENRY RODRIGUEZ, WE HAVE SOUTHWEST HIGH SCHOOL, HISTORY TEACHER JUSTIN HOWARD AND THREE STUDENTS THAT WILL BE SPEAKING AT THE MARCH, WE HAVE A PROFESSOR FROM PALO ALTO COLLEGE, WE HAVE A DREAMER, MARIO ROCHA WHO WILL BE SPEAKING AT THE MAIN STAGE AND OTHERS, WHERE ANDRES CHAVEZ IS GOING TO MAKE ABOUT SEVEN SCHOOL VISITS WHILE HE'S HERE IN SAN ANTONIO.

SO WE'RE EXCITED ABOUT THE VISIT, EVERYWHERE FROM CAMELOT HIGH SCHOOL TO LANIER HIGH SCHOOL, THERE'S A LONG LIST OF SCHOOLS THAT HE'S GOING TO MAKE THE ROUNDS TO.

BUT AT THIS TIME, I'D LIKE TO INTRODUCE FROM SOUTHWEST HIGH SCHOOL, I MENTIONED THE THEME FOR THE MARCH, BUILDING BRIDGES FOR EDUCATION, NONVIOLENCE AND SOCIAL JUSTICE.

AT THE CENTER OF THIS NATION WE'RE BEING FACED WITH THE VIOLENCE IN OUR COMMUNITY IN AUDIO] -- AFTER ALL CESAR CHAVEZ STOOD FOR NONVIOLENCE.

SO AS WE ALL HAVE HEARD ABOUT THE MARCH FOR OUR LIVES MOVEMENT, HIGH SCHOOLS HAVE BEEN CALLING, SAYING WE WANT TO BE A PART OF THIS MARCH.

WE'RE COMING TOGETHER, AND WE HAVE THREE STUDENTS THAT WILL BE SPEAKING AT THE MARCH.

I'D LIKE TO GIVE JUST A BRIEF INTRODUCTION AND TIME TO THOSE STUDENTS WHO ARE HERE WITH US TODAY.

[APPLAUSE]

>> HI.

THANK YOU, EVERYBODY, FOR HAVING ME HERE.

MY NAME IS LISA, I JUST WANT TO SAY IT'S GOING TO BE AN HONOR TO SPEAK AT THE MARCH AND HAVE [INAUDIBLE] IT'S GOING TO BE INTERESTING AND I'M VERY LOOKING FORWARD TO IT.

THANK YOU.

>> HI, MY NAME'S JUSTIN HOWARD, AND AS A TEACHER AT SOUTHWEST HIGH SCHOOL, I'M PROUD TO REPRESENT A DISTRICT THAT STANDS FIRMLY BEHIND THE IDEAS OF THE CESAR CHAVEZ MARCH FOR JUSTICE.

AND I'M VERY EXCEEDINGLY PROUD OF THE STUDENTS THAT HAVE STOOD UP TO SPEAK PUBLICLY, BRAVE STUDENTS, WHO WILL STAND UP FOR SOCIAL JUSTICE, EDUCATION AND NONVIOLENCE.

AND I'D LIKE TO INTRODUCE OUR OTHER STUDENTS.

>> HI, MY NAME IS GRAB --

[02:50:06]

GABRIELA DE LA ROSA.

IT'S AN HONOR TO SPEAK OUT TO THE COMMUNITY, THANK YOU CITY COUNCIL AND THE COMMUNITY FOR SUPPORTING THIS MARCH AND FOR HEARING US OUT.

>> ALSO, TOO, SO ON SOCIAL JUSTICE, WE KNOW THAT THERE'S 800,000 DREAMERS IN LIMBO, AND WE'LL MAKE SURE THAT'S FRONT AND CENTER.

WE KNOW THAT DREAMERS DO NOT IMPOSE ANY THREAT ON NATIONAL SECURITY OR PUBLIC SAFETY, SO WE WILL BE ADDRESSING THAT AND REAL BRIEFLY MARIA ROCHA IS ONE OF THE MAIN SPEAKERS AT THE MAIN STAGE.

>> THANK YOU FOR HAVING ME.

WALK THE STREETS INTO HISTORY.

I HAVE A POSTER HUNG IN MY CLASSROOM WITH HER QUOTE ALONG WITH MY CESAR CHAVEZ FLAG AND ANOTHER THAT READS SPANISH] TEACHERS PROTESTING ARE ALSO TEACHING.

THIS YEAR'S MARCH COMES AT A MOMENT WHERE OUR CHILDREN ARE GOING TO ASK WHAT ACTIONS WE TOOK IN SUPPORT OF FIGHTING AGAINST SYSTEMIC INJUSTICES? AS A DACA RECIPIENT, MY COMMITMENT TO ENSURE THAT OUR UNDOCUMENTED COMMUNITY FEELS SAFE AND JUST BY WALKING ALONGCIDAL LIES AND ADVOCATES -- ALONGSIDE ALLIES AND ADVOCATES ON MARCH 24TH.

THANK YOU.

>> WHAT YOU JUST HEARD FROM A FEW OF OUR SPEAKERS AND PEOPLE THATAT ARE COMING TOGETHER, BELINDA SALDAÑA HARMOND FROM UTSA, I JUST GOT WORD TODAY, THERE'S BUSES COMING FULL OF STUDENTS FROM UTSA.

THEY'LL BE JOINING US, THANK YOU, UTSA AND OF COURSE KIP ACADEMY AND MONICA BENAVIDES WHO REACHED OUT, WHERE'S MONICA? A BIG RALLY SHE'S GOING TO ORGANIZE, CAMELOT ELEMENTARY SCHOOL, NORTHEAST INDEPENDENT SCHOOL DISTRICT, THEY'RE GOING TO HAVE A BIG RALLY FOR ANDRES CHAVEZ, SO MONICA, THANK YOU.

AND, AGAIN, THIS IS JUST A REFLECTION OF THE COMMUNITY COMING TOGETHER TO PAY TRIBUTE TO AMERICAN ROLE MODEL AND HERO CESAR CHAVEZ.

MAYOR, I LOOK FORWARD TO SEEING YOU AT THE MARCH.

IT'S GOING TO BE A BEAUTIFUL DAY OF ADDRESSING THE RIGHT ISSUES FOR OUR COMMUNITY.

WE'RE GOING TO CELEBRATE CESAR, TOO, SO WE'RE GOING TO CLOSE OUT THE EVENT WITH A PERFORMANCE FROM THREE-TIME LATIN GRAMMY WINNER JOE PASADA AT THE END OF THE ROUTE.

SO THANK YOU, MAYOR, MEMBERS OF CITY COUNCIL.

AND I WOULD BE REMISS IF I DIDN'T CLOSE WITH A CEREMONIAL -- THIS IS A CEREMONIAL TRADITION HERE FOR US, SO AS WE CALL IT THE WELGA CLAP.

LET'S CLOSE IT OUT WITH THAT.

ARE YOU EVERYBODY? ]RHYTHMIC CLAPPING

>> GOD BLESS YOU.

>> MAYOR PRO TEM: COUNCILMEMBER SANDOVAL.

>> SANDOVAL: THANK YOU VERY MUCH TO ALL OF YOU FOR BEING HERE AND FOR REMINDING US THE PURPOSE OF THE MARCH AND WHY WE CELEBRATE THE LIFE OF CESAR CHAVEZ AND ALL THE WORK THAT HE DID.

I WAS IN HIGH SCHOOL WHEN HE PASSED AWAY, AND IT LEFT AN IMPRESSION ON ME, AND THEN IN COLLEGE I IMOT -- GOT TO SEE DELORES HUERTA COME AND SPEAK TO OUR COLLEGE GROUP AND WE DID A CALL IT WHEN YOU -- BOYCOTT.

AND YOU'RE RIGHT, IT'S ABOUT SOCIAL JUSTICE AND IT'S FUNNY BECAUSE TODAY WE HAD A CONVERSATION ABOUT SOMETHING THAT COULD SOUND VERY BORING, OUR PROCUREMENT PRACTICES, BUT THE REAL DRIVER IN THAT CONVERSATION AND PART OF THE REASON WE WERE HAVING IT WAS ABOUT HOW WE TREAT WORKERS WHO ARE HIRED BY THE CITY AND CONTRACTED BY THE CITY.

AND SOMEONE LIKE CESAR CHAVEZ KNOWS THE -- YOU KNOW, GAVE US AN EXAMPLE -- AUDIO] -- WITH THE CITY.

AND IT'S, I THINK, INCUMBENT UPON US TO REMEMBER THAT AND PUT THOSE POLICIES IN PLACE.

AND WE KNOW, AND YOU REMINDED US, THAT SOME OF OUR MOST VULNERABLE MEMBERS OF THE COMMUNITY ARE WORKERS WHO WERE BORN OUTSIDE OF THE U.S., LIKE, YOU KNOW, MY PARENTS AND I WERE, AND MY FATHER WAS A LABORER IN THE CONSTRUCTION FIELD, AND THERE WERE MANY TIMES WHEN HE WAS TAKEN ADVANTAGE OF AND DIDN'T BRING HOME THE PAY THAT OUR FAMILY NEEDED, AND THAT HE HAD -- HE HAD VERY MUCH EARNED.

AND, YOU KNOW, HE MIGHT HAVE FOUND HIMSELF OUT OF A JOB HERE AND THERE, SO I WILL BE MARCHING WITH YOU THIS MONTH, PROUDLY AND THANK YOU, AGAIN, FOR THE WORK THAT YOU'RE DOING AND FOR BEING HERE.

>> THANK YOU.

>> MAYOR PRO TEM: THANK YOU COUNCILMEMBER SANDOVAL.

COUNCILMAN PERRY.

>> PERRY: YES.

THANK YOU VERY MUCH.

THANK Y'ALL FOR COMING OUT HERE TONIGHT TO HELP US REMEMBER ABOUT WHAT HE STARTEDDED, NATIONAL FARM WORKERS

[02:55:02]

ASSOCIATION.

MANY OF YOU DON'T KNOW, BUT ACTUALLY MY GRANDPARENTS WERE FARMERS ON A SMALL FAMILY FARM, AND I WAS OUT THERE.

I PICKED COTTON, I'D CHOP THE WEEDS FROM THE ROWS, I PULLED CORN, CUT TOPS, I DID ALL THAT STUFF.

AND, YES, IT IS HARD WORK.

YES, IT'S VERY HARD WORK.

AND SO I CAN APPRECIATE THAT ON WHY THIS ASSOCIATE WAS FORMED, AND THE ACCOMPLISHMENTS THAT IT MADE OVER THE YEARS.

AND CONGRATULATIONS TO YOU FOR PERPETUATING THIS ORGANIZATION AND THE MARTHA YOU'RE GOING TO BE DOING LATER ON THIS MONTH.

THANK YOU VERY MUCH.

APPRECIATE IT.

>> THANK YOU.

>> MAYOR PRO TEM: THANK YOU, COUNCILMEMBER PERRY, AND I WOULD JUST WRAP UP WITH SAYING THANK YOU.

LAST WEEK WE VOTED ON EXPANDING OUR FREE SPEECH OPPORTUNITIES AND IT WAS A PRETTY UNIFORM DECISION, ALL OF US WERE BEHIND EXPANDING THE OPPORTUNITIES FOR PEOPLE TO PUT THEIR FOOT ON THE GROUND AND MAKE A DIFFERENCE IN THEIR COMMUNITY.

YOU GET THAT OPPORTUNITY IN THE NEXT COUPLE WEEKS FOR THE 22ND TIME, WHICH IS MIND BOGGLING TO ME.

LOOTS OF -- 22 YEARS IS AN AMAZING ACCOMPLISHMENT, BUT I WOULD TELL YOU AT THE ROOT OF -- I BELIEVE AS WELL AS ALL OF MY COLLEAGUES AT THE ROOT OF WHO WE ARE IS OUR ABILITY TO STAND UP AND SPEAK TO WHAT WE BELIEVE AND THE EXPANSION OF FREE SPEECH OPPORTUNITIES AND YOU CONTINUING THAT LEGACY SENDS A MESSAGE TO THE COMMUNITY THAT YOU CAN SAY ANYTHING YOU WANT, BE RESPECTFUL AND GO OUT AND FIGHT FOR WHAT MATTERS TO YOU.

I WISH YOU THE BEST OF LUCK WHEN YOU'RE OUT THERE, AND YOU HAVE A GREAT TIME.

AND THANK YOU TO THE FOOD BANK, WHEN I SAW MARIO HERE, I DEPARTMENT REALIZE IT WAS FOR THIS ONE.

SO IT'S GOOD THAT THE FOOD BANK, I SEE THAT, I LIKE YOUR -- YES, WE CAN WITH THE SOUP CAN UP THERE.

THAT'S PRETTY CREATIVE.

BUT YOU -- AND ERIC, PLEASE PASS ON OUR THANKS TO THE FOOD BANK FOR JOINING AND SUPPORTING THE ORGANIZATION AND THE MARCH.

I THINK THAT'S HUGE FOR THE COMMUNITY AND THE FOOD BANK'S TO BE COMMENDED FOR THAT.

THANK YOU, HAVE A SAFE MARCH, WE LOOK FORWARD TO SEEING YOU AT THE 23RD OPPORTUNITY NEXT YEAR IN 2019.

THANK YOU.

>> ABSOLUTELY.

SO THANK YOU, MAYOR.

YOU KNOW, AND WHEN YOU'RE UP HERE, I'VE SEEN FACES, EVERYBODY COMING TOGETHER, YOU KNOW, AGAIN, THIS IS -- THIS IS NOT JUST THE WEST SIDE.

THIS IS FOR EVERYBODY, FROM ALL OF SAN ANTONIO.

I LOOK FORWARD TO SEEING YOUR PSA INVITING THE ENTIRE CITY TO COME OUT FOR THE MARCH.

AND, OF COURSE, WE HAVE OUR PASTOR CHARLES FLOWERS A FRIEND OF THE FAMILY REPRESENTING THE BLACK, BROWN AND WHITE ORGANIZATION HERE IN SAN ANTONIO.

SO THIS WOULD BE A GOOD TIME ON THE 24TH.

THANK YOU, MAYOR.

THANK YOU, CITY COUNCIL.

>> MAYOR NIRENBERG: AND LET ME WRAP UP, ERNEST, I WILL SAY THAT SOME OF MY MOST TREASURED MEMORIES AS A COUNCILMAN WAS HERE IN CEREMONIALS AND SEEING YOUR FATHER COME UP AND ADDRESS THE COUNCIL, REMINDING US WHAT WE'RE HERE TO DO AND THE HARD WORK THAT POLICYMAKERS, LOCALLY HAVE TO DO TO PERPETUATE THE MEMORY OF CESAR CHAVEZ AND ALSO TO FIGHT FOR JUSTICE, ALL THE PEOPLE WHO WE WORK FOR.

AND HE IS MISSED; HOWEVER, HIS LEGACY AND HIS VISION AND MISSION LIVES ON, AS DOES CESAR CHAVEZ.

YOU KNOW THAT MY WIFE ERICA AND I MARCH EVERY YEAR.

>> YES.

>> MAYOR NIRENBERG: AND WE ALSO MARCH WITH MY SON.

AND PART OF THAT IS TO HELLP HIM REMEMBER WHERE WE COME FROM.

YOU MIGHT REMEMBER, SOME OF THE FOLKS MIGHT REMEMBER THAT MY WIFE WAS A MIGRANT WORKER.

WE WALK FOR HER TO HELP EVERYONE KNOW NO WORKER DESERVES TO BE TREATED UNFAIRLY, AND THAT WORK CONTINUES EVEN UP ON THIS DAIS.

SO THANK YOU FOR YOUR PERSISTENCE.

MARIA, THE CITY STANDS WITH YOU AND WITH YOUR 800,000 COME PATRIOTS WHO ARE AMERICANS.

WE KILL CONTINUE TO FIGHT FOR YOU.

AS WE MARCH ON THE 24TH, WE CARRY YOU ON OUR SHOULDERS, WE CARRY THE MEMORY OF CESAR CHAVEZ WITH US.

>> THANK YOU, MAYOR.

* This transcript was compiled from uncorrected Closed Captioning.