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UH, WELCOME TO THE AUDIT AND ACCOUNTABILITY COMMITTEE MEETING OF JANUARY 19TH.
I'M COUNCILMAN JOHN, COURAGE CHAIR OF THE COMMITTEE.
UH, WE HAVE WITH US, UH, OUR OTHER COMMITTEE MEMBERS TODAY, UH, ON OUR AGENDA TODAY.
WE HAVE, UH, QUITE A FEW ITEMS. UH, SEVERAL ARE, UH, ON CONSENT, AND THEN WE HAVE QUITE A FEW FOR INDIVIDUAL CONSIDERATION.
SO LET'S BEGIN THE MEETING, UH, WITH THE APPROVAL OF THE MINUTES.
WE HAVE MINUTES FROM NOVEMBER 17TH AND DECEMBER 15TH.
COUNCIL MEMBER, UH, PERRY HERE.
COUNCIL CITIZEN, MEMBER SOTO, A CITIZEN MEMBER TREVINO PRESENT AND, AND CHAIR HORRIDGE.
[Items 1 & 2]
HAVE THE FIRST TWO ITEMS ARE APPROVAL OF MINUTES FROM DECEMBER 17TH, DECEMBER 15TH.I HOPE, UH, ALL OUR MEMBERS HAVE HAD A CHANCE TO REVIEW ALL OF THE ITEMS SENT TO YOU PREVIOUSLY, AND I WOULD ENTERTAIN A MOTION TO APPROVE THE MINUTES, OR IF THERE ARE ANY AMENDMENTS THAT NEED TO BE MADE, PLEASE SPEAK UP.
I HAVE A MOTION MADE TO APPROVE AND, UH, SECONDED FOR BOTH SETS OF MINUTES FROM NOVEMBER 17TH TO DECEMBER 15TH.
ANY QUESTIONS OR CONCERNS? HEARING NONE.
I DON'T BELIEVE THERE WAS ANY OPPOSITION.
THE MINUTES HAVE BEEN APPROVED.
[CONSENT AGENDA]
WE'LL GO ON TO THE CONSENT AGENDA.WE HAVE FIVE ITEMS ON CONSENT ITEMS THAT WERE PREVIOUSLY SENT TO ALL COMMITTEE MEMBERS.
HOPEFULLY YOU HAD AN OPPORTUNITY TO REVIEW ALL OF THOSE ITEMS. UH, NOW IS THE TIME, IF ANY OF YOU FEEL THERE'S ANY OF THESE ITEMS THAT SHOULD BE PULLED FOR INDIVIDUAL CONSIDERATION, UH, THIS WOULD BE A TIME TO DO THAT.
UH, THE ITEMS 3, 4, 5, 6, AND SEVEN ARE ON-CALL, COMMERCIAL HEATING AND VENTILATION CONDITIONING, UH, AC FINAL 4, 20 25, IMPROVEMENTS TO DESIGN ON-CALL, MECHANICAL, ELECTRIC, AND PLUMBING ON-CALL STRUCTURAL ENGINEERING SERVICES AND PARK POLICE HEADQUARTERS.
ARE THERE ANY QUESTIONS? DO ANY ANYBODY WANT TO PULL ANY OF THOSE ITEMS? YES.
UH, MAY WE PULL PARK POLICE HEADQUARTERS FOR THE PRESENTATION AND OVERVIEW, PLEASE.
WE'LL PULL ITEM NUMBER SEVEN, PARK POLICE HEADQUARTERS FOR INDIVIDUAL CONSIDERATION.
UH, WE'LL MAKE THAT THE FIRST INDIVIDUAL CONSIDERATION ITEM WE, WE ADDRESS.
ANY OTHER QUESTIONS OR CONCERNS? OKAY.
SO ITEMS 3, 4, 5, AND SIX ARE ON CONSENT.
ENTERTAIN A MOTION TO APPROVE THE CONSENT AGENDA.
I MOVE, SO WE APPROVE THE AGENDA.
MOTION MADE AND SECONDED TO APPROVE THE CONSENT AGENDA ITEMS 3, 4, 5, AND SIX.
[7. 20-7452 Park Police Headquarters [Roderick Sanchez, Assistant City Manager; Razi Hosseini, Director, Public Works]]
ITEM NUMBER SEVEN, LET'S GO AHEAD AND ADDRESS THAT, UH, RIGHT OFF THE BAT.UH, THAT'S PARK POLICE HEADQUARTERS.
UH, WHO CAN GIVE US A PRESENTATION ON THAT? THAT WAS THE REQUEST BY COUNCIL MEMBER SANDOVAL.
COUNCILMAN, THIS IS REZI JOSE, DIRECTOR AT CITY ENGINEER PUBLIC WORKS DEPARTMENT.
WE DO NOT HAVE ANY PRESENTATION FOR THIS ITEM, BUT I'M AVAILABLE TO ANSWER ANY QUESTION COUNCILWOMAN MAY HAVE, OR I CAN PROVIDE YOU SOME BACKGROUND ON THE PROJECT ALSO.
THIS WAS AS PART OF 2017 FARM PROGRAM CALLED SAN ANTONIO POLICE DEPARTMENT, SUBSTATION AND PARK POLICE HEADQUARTERS.
THE BUDGET WAS SLIGHTLY OVER 20 MILLION,
[00:05:02]
AND THE IDEA WAS THIS TO BE LOCATED IN, UH, USUALLY IN DOWNTOWN AREA.WE LOOKED FOR THREE ACRE PROPERTY TO BE ABLE TO BUILD, DESIGN AND BUILD FOR SAN ANTONIO POLICE DEPARTMENT SUBSTATION AND PARK POLICE HEADQUARTERS.
UNFORTUNATELY, IN DOWNTOWN AREA, EITHER THREE ACRE, THE OTHER ONE IS GOING TO BE IN CITY BUILDING, CITY OWNED BUILDING 2 77 IN HEMI SQUARE PARK, WHICH IS USED TO BE MANY YEARS AGO.
TRAINING FACILITY IS, IS A GOOD S SIZE BUILDING, TWO STORY BUILDING.
WE ARE DESIGNING THIS BUILDING TO REALLY HOUSE IS A PARKS POLICY HEADQUARTER.
I THINK THIS IS THE ONE AS WE ARE GOING FORWARD, THE BUDGET, THIS PROJECT IS $3.5 MILLION.
WE ARE IN SPEEDING TO RELEASE THIS ONE IN FEBRUARY, EARLY FEBRUARY.
AND CLOSING DATE WILL BE END OF MARCH OF THIS YEAR.
AND WE ARE, WE'LL BE BRINGING THIS ONE TO COUNCIL SOMETIME SUMMER THIS YEAR.
ANY OTHER QUESTIONS, COUNCILWOMAN? YES, I DO.
CAN YOU REMIND ME WHAT WAS THE BOND SET ASIDE FOR THIS PROJECT? THE PROJECT TOGETHER WAS 10,567,000, I'M SORRY, 20,567,000 FOR BOTH PROJECT TOGETHER, POLICE SUBSTATION AND PARKS HEADQUARTER TOGETHER WAS SLIGHTLY OVER 20 MILLION.
SO I, UH, SO HOW MUCH WAS SPENT ON NORTH SAINT MARY'S OR WILL HAVE BEEN SPENT ON THE NORTH SAINT MARY'S PORTION IF YOU HAVE BOUGHT THE PROPERTY? I DON'T RECALL THE SPEND EXACTLY HOW MUCH WE PAID.
I BELIEVE WE PAID A OVER 3 MILLION FOR PURCHAS OF 1.5 ACRE.
WE ARE DOING THAT ONE AS A DESIGN BILL.
IT'LL BE COMING COUNCIL SHORTLY FOR APPROVAL.
CAN YOU TELL ME WHAT THE AMOUNT MIGHT BE FOR THE DESIGN BILL COUNCIL? MA'AM, WE CAN GET THAT NUMBER FOR YOU.
I HATE TO GIVE YOU SOME NUMBER.
I'M JUST WONDERING IF WE'RE GOING TO HAVE IT, IF THIS IS 3.4.
UM, I, I'M, IT'S JUST NOT ALL TOTALING TO 20 MILLION, UH, RIGHT NOW.
SO THAT'S WHAT, WHAT I DON'T UNDERSTAND.
THIS IS PART OF, THIS IS PART OF 20 MILLION, UH, CORRECT.
UM, AND THEN I'D LIKE TO KNOW IN THE, IN THE C S P THAT YOU'RE PUTTING OUT, WHAT SORT OF, UM, ENERGY EFFICIENCY OR L I D COMPONENTS ARE GOING TO BE PART OF THAT REQUEST? OF COURSE, COUNCILWOMAN ANY BUILDING WE DO, WE DO AS MUCH AS POSSIBLE, SINCE WE'RE RENOVATING EXISTING BUILDING, WE MAY NOT BE ABLE TO DO AS MUCH WE DO ON THE BRAND NEW BUILDING, BUT WE'LL DO ENERGY EFFICIENCY LIGHTS AND OTHER AS WE CAN.
SO THE, THE CITY'S NOT PURSUING ANY SORT OF LEAD REQUIREMENTS, UH, IN THIS CONTRACT IN THE C S C, NOT, NOT ON THIS PROJECT.
IS THERE ANY REASON WHY NOT? BECAUSE IT IS EXISTING BUILDING COUNCILWOMAN.
UM, UH, COUNCILMAN CHAIR, I THINK I HAVE A LOT MORE QUESTIONS, UH, ABOUT THIS, ESPECIALLY BEING THE PARTS AND REC, UH, BUILDING.
SO I APOLOGIZE, I DID NOT THOROUGHLY GO THROUGH THIS WITH, UH, WITH ZY, UH, IN, IN ADVANCE.
UM, SO I, WOULD YOU LIKE TO PULL ASIDE THEM TO BE RECONSIDERED AT ANOTHER MEETING? YES, CHAIR.
I THINK THAT, UH, LET ME ASK, ARE ARE THERE ANY OBJECTIONS, RAZZI, I'D LIKE TO HEAR ANY THAT YOU MAY HAVE OR OTHER COMMITTEE MEMBERS FROM, UH, POSTPONING THIS FOR RECONSIDERATION TO ANOTHER MEETING? RAZZI, WHAT WOULD THIS DO TO, UH, YOUR EFFORT MOVING FORWARD? IT JUST DELAY BY ANOTHER MONTH.
IS THAT A, IS THAT A MAJOR PROBLEM? ANY DELAY AFFECTS OUR PROJECT DELIVERY.
I, I'D JUST LIKE TO MAKE A COMMENT ABOUT
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IT THAT, YOU KNOW, THE DESIGN DETAILS ARE, ARE A LITTLE BIT DIFFERENT FROM WHAT THIS COMMITTEE IS, UH, REALLY INTO THE PROCESS IS WHAT WE REALLY LOOK AT HERE IN THIS PARTICULAR COMMITTEE.UH, IF IT'S DESIGN DETAILS, UM, I, I WOULD, I WOULD SUGGEST THAT WE MOVE ON WITH THIS PARTICULAR CONTRACT, BUT IF IT'S DESIGN DETAILS, THOSE CAN BE WORKED OUT SEPARATELY, UH, BETWEEN COUNCILWOMAN SANDOVAL AND, AND RAZZIE, AND THEN BRIEFED WHEN IT COMES UP TO COUNCIL, IF THERE'S SUBSTANTIAL CHANGES BECAUSE OF ANY, UH, PARTICULAR DESIGN CHANGES OR WHATEVER.
BUT AS FAR AS THE PROGRAMMING GOES, I, I DIDN'T HAVE A PROBLEM WITH THIS IN THE PROCESS THAT IT WENT THROUGH TO GET TO THIS POINT.
ANYONE ELSE HAVE A COMMENT? OKAY.
I, I WOULD SHARE, MY COMMENT IS NOT KNOWING WHAT HAPPENS TO THE OTHER $13.5 MILLION.
I MEAN, WE'RE NOT ABLE TO HEAR ANY THOROUGH EXPLANATION, UH, OF THE REST OF IT.
AND, YOU KNOW, I CAN, I CAN SOMEWHAT UNDERSTAND THE COUNCILMAN'S HESITATION IF IT'S A $20 MILLION, UH, BOND PROJECT.
AND WE CAN ONLY IDENTIFY RIGHT NOW HOW WE'RE SPENDING THREE AND A HALF MILLION OF THAT.
UH, ARE WE GONNA SPEND 17 MILLION OR 16 AND A HALF FOR THE ST.
MARY'S PROJECT? AND I THINK, YOU KNOW, I THINK THAT'S SOMETHING WE'D LIKE TO KNOW.
UH, SO I CAN UNDERSTAND A LITTLE BIT OF HER HESITANT ABOUT THAT.
UM, I'M OPEN FOR A MOTION ON HOW WE SHOULD PROCEED.
C COUNCILMAN, CAN I ADD THE OTHER POLICY SUB STATION IN 2020 NORTH SEMINARY, THAT PROJECT ITSELF HAS GONE THROUGH AUDIT AND ACCOUNTABILITY COMMITTEE HAS GONE THROUGH THE PROCESS AND APPROVAL TO GO GO FORWARD.
SO IT MUST HAVE HAD A DOLLAR AMOUNT, UH, THAT WAS BROUGHT FORWARD IN THAT ESTIMATE, RIGHT? WHAT WAS THAT CO CORRECT? I DON'T RECALL OFFHAND, BUT WE HAVE GONE THROUGH THE PROCESS.
WOULD YOU GO AHEAD AND CHECK ON THAT AND WE'LL HOLD THIS ITEM AND MOVE ON? I THINK THAT WE'D JUST LIKE TO HAVE THAT QUESTION ANSWERED.
IF YOU HAVE YOUR STAFF CHECK ON THAT AND GET BACK TO US.
AND, AND WE'LL JUST HOLD ON THAT ITEM FOR FINAL, UH, CONSIDERATION.
AND LET'S MOVE ON, UH, TO THE OTHER INDIVIDUAL ITEMS WE HAVE, UH, ITEM
[8. 21-1044 Briefing on Publicly-Accessible Electric Vehicle (EV) Charging Infrastructure Solicitation [David McCary, Assistant City Manager; Douglas Melnick, Chief Sustainability Officer]]
NUMBER EIGHT.UH, THIS IS A BRIEFING FOR, UH, PUBLICLY ACCESSIBLE ELECTRIC VEHICLE CHARGING INFRASTRUCTURE.
IF YOU RECALL, THERE WAS AN ITEM THAT WAS BROUGHT TO COUNCIL PREVIOUSLY, AND THERE WERE CONCERNS ABOUT THE ITEM AND THE STAFF, UH, REVISITED WITH THE, UH, VENDOR INVOLVED, AND THEY WANTED TO MAKE A PRESENTATION TO UPDATE US ON THAT.
SO WHO'LL BE MAKING THAT PRESENTATION? YEAH.
UH, CHAIRMAN, KURT, THIS IS DAVID MCCAREY.
UH, DOUG MELNICK WILL BE MAKING A PRESENTATION TODAY ALONG WITH, UH, TROY ELLIOT.
UH, WE DO HAVE SOME GOOD INFORMATION TO SHARE WITH YOU, UH, AND WE'RE LOOKING FORWARD TO IT.
ALSO, UH, BLINK REPRESENTATIVES ARE HERE.
SHOULD, UH, ANY QUESTIONS COME UP, UH, DURING THIS TIME? THANK YOU FOR YOUR TIME.
UH, MR. CHAIR AND AND COMMITTEE MEMBERS, THANK YOU FOR THIS OPPORTUNITY, UH, THIS MORNING.
UH, WE DO HAVE SOME FOLKS, UH, ON THE CALL, UH, WHO CAN HELP US ANSWER, ANSWER SOME QUESTIONS FROM BLINK.
WE HAVE BRENDAN JONES, UM, WHO'S THE, UH, CHIEF OPERATING OFFICER.
WE'VE GOT ANTHONY ORLANDO, WHO'S, UH, BLANKS REGIONAL VICE PRESIDENT, AND WE HAVE THEIR COUNCIL, UH, Y BARON, UH, WHO WILL BE AVAILABLE.
WE ALSO HAVE FROM C P S ENERGY, JOHN LE AND VALERIE TRO IN CASE ANY QUESTIONS COME UP REGARDING C P SS.
SO, UH, IF WE GO TO THE NEXT SLIDE, PLEASE.
SO, JUST FOR SOME BACKGROUND, UH, AGAIN, THIS IS, UM, UH, YOU KNOW, A FOLLOW UP TO THAT ITEM BACK ON DECEMBER 10TH.
BUT, UH, STARTING, UH, ON JULY 1ST, 2020, UH, THE CITY ISSUED AN R F P FOR PUBLICLY ACCESSIBLE ALLEGED VEHICLE CHARGING, UH, INFRASTRUCTURE ON CITY PROPERTY.
UH, WE RECEIVED FIVE PROPOSALS, UH, ON JULY 30, 31ST, 2020.
AND DEAN, UH, ELIGIBLE FOR EVALUATION.
UH, THE EVALUATION MEETING, UM, WAS HELD ON SEPTEMBER 3RD, 2020.
AND THREE FIRMS WERE SHORTLISTED FOR INTERVIEWS.
WE CONDUCTED INTERVIEWS ON SEPTEMBER 14TH, 2020.
AND AGAIN, THE STAFF RECOMMENDATION WAS MADE TO CITY COUNCIL ON DECEMBER 10TH, 2020, UM, AND WHICH WAS REFERRED TO, UH, THE COMMITTEE, UH, THIS MORNING.
SO, UM, JUST TO SORT OF GO BACK TO THE REASON WHY THIS IS, UH, AN IMPORTANT INITIATIVE, UM, YOU SEE THERE'S MANY PLANS
[00:15:01]
AND POLICIES IN PLACE, UH, THAT REALLY CALL FOR VEHICLE ELECTRIFICATION.UH, OUR CLIMATE PLAN, UM, OUR OZONE ATTAINMENT MASTER PLAN, UH, OUR SUSTAINABILITY PLAN, AND OUR INITIATIVES, UH, ACROSS THE AMERICAN CITIES CLIMATE CHALLENGE.
AND, AND WHEN WE LOOK AT, UM, YOU KNOW, GROUND LEVEL OZONE, WE KNOW A LOT OF THAT COMES FROM TAILPIPE EMISSIONS.
SO IMPROVING EFFICIENCY OF VEHICLES IS KEY.
AND WHEN WE LOOK AT OUR GREENHOUSE GAS EMISSIONS, JUST UNDER HALF OF THOSE EMISSIONS COMES FROM, UM, VEHICLES, UH, AND PERSONAL VEHICLES AND FLEET VEHICLES.
SO, UH, NOT ONLY DO WE NEED TO REDUCE THE AMOUNT OF VEHICLES MILES TRAVELED, WE NEED TO IMPROVE THE EFFICIENCY AND REDUCE THE CARBON INTENSITY OF, OF TRANSPORTATION.
UM, YOU CAN, YOU KNOW, THE OTHER THING YOU CAN SEE IS, UM, YOU KNOW, THERE'S 4,400 REGISTERED EVS IN THE C P S ENERGY SERVICE AREA NOW, UH, C P S ESTIMATES THAT THERE'S, UH, THE NEED FOR GROWTH UPWARDS TO 50,000 EVS BY 2030.
AND THAT REALLY SHOWS THAT THERE'S A MARKET TREND THAT OUR, OUR, OUR RESIDENTS ARE LOOKING TO PURCHASE ELECTRIC VEHICLES, UM, NOT JUST FOR THE ENVIRONMENTAL BENEFITS, BUT ALSO BECAUSE IT'S AN ECONOMIC, UM, UH, UM, UH, BENEFIT TO THEM AS WELL.
YOU KNOW, IT IS A MUCH MORE EFFICIENT VEHICLE.
WE'RE ALSO SEEING BUSINESSES AND INDUSTRY SHIFT THAT WAY.
SO I THINK A BIG PART OF IT IS GETTING THE INFRASTRUCTURE IN PLACE TO SUPPORT, SUPPORT THIS MARKET TREND, UM, AND ENSURE THAT WE'RE, WE'RE COMPETITIVE, UM, STATEWIDE AND NATIONALLY.
UH, WE'RE SEEING CITIES ACROSS THE COUNTRY BUILD OUT THEIR, UH, EV CHARGING INFRASTRUCTURE, AND WE NEED TO MAKE SURE THAT WE'RE, WE'RE KEEPING UP.
THE OTHER THING I JUST WANT TO POINT OUT IS C P S HAS BEEN LOOKING AT THIS, UH, IN TERMS OF WHAT IT MEANS FOR, FOR THE UTILITY.
AND, UM, IF APPROVED BLINK WOULD BE WORKING UNDER A C P S PILOT, UM, RATE, UH, CALLED THE SMALL COMMERCIAL ELECTRIC VEHICLE PILOT RATE.
AND THAT'S BEEN IN PLACE SINCE, UM, UH, 2020.
AND IT ALLOWS THEM TO RECOUP THE COST OF, OF A THIRD PARTY OWNERSHIP OF EV UM, INFRASTRUCTURE.
SO, UH, IF THERE'S ANY QUESTIONS, I'M SURE, UM, OUR PARTNERS FROM C P S WOULD BE HAPPY TO ANSWER SOME, SOME MORE QUESTIONS.
SO, ANOTHER KEY OPPORTUNITY THAT WE HAVE IS THAT VW SELL AMOUNT MONEY THAT WE TALKED ABOUT LAST TIME THROUGH, UH, WHICH IS CALLED TECH BEN.
UH, THERE'S $10.4 MILLION IN GRANTS AVAILABLE FOR LEVEL TWO CHARGING, UH, INFRASTRUCTURE THAT'S AVAILABLE NOW.
UH, WE EXPECT, UM, THERE TO BE CHARGING, UM, UH, GRANTS OPPORTUNITIES FOR LEVEL THREE CHARGING INFRASTRUCTURE, UH, TO BE RELEASED SOON.
EXCUSE ME, DOUG, FOR, EXCUSE ME, DOUG.
UH, WE DON'T NEED TO GET SOLD ON, ON THE VALUE OF THE PROGRAM.
THE QUESTION WAS THE, THE PHYSICAL FINANCIAL SUSTAINABILITY OF THE COMPANY THAT WAS BEING RECOMMENDED.
IF WE COULD ADDRESS THAT MORE DIRECTLY.
WE HAVE A PRETTY LENGTHY MENU OF ITEMS TODAY.
UH, DAVID, WOULD YOU SUGGEST WE JUST SORT OF SHIFT OVER TO TROY'S PRESENTATION Y? YEAH, I WOULD RECOMMEND THAT WE GO THROUGH FURTHER INTO THE SLIDES, UH, CHAIRMAN, AND THAT'LL EXPLAIN AND ANSWER THAT PART OF YOUR QUESTION.
IF WE COULD, IF WE COULD MOVE TO SLIDE 13.
AND, AND, AND GOOD MORNING CHAIR AND MEMBERS OF THE COMMITTEE.
ONE BEFORE GETTING INTO THE DETAILS.
I THINK THERE'S SOME VALUE TO MAYBE TALKING A LITTLE BIT ABOUT THE DUE DILIGENCE DUE PROCESS IN LIGHT OF SOME OF THE QUESTIONS THAT WE RECEIVED FROM THE FULL COUNSEL ON DECEMBER 10TH.
THEN WE'LL GET, AS WE GET INTO THE DUE DILIGENCE, I'LL ASK FOR SOME ASSISTANCE FROM ANDY AND RAY, MAYBE TO GO INTO A LITTLE MORE DETAIL ON THE QUESTION AROUND THE, UM, THE LAWSUIT THAT WAS IN PLACE.
BUT FIRST OF ALL, ON SLIDE 13, UM, JUST BY WAY OF BACKGROUND, MY TEAM, UM, WILL PROVIDE DUE, WILL DO THE DUE DILIGENCE, UM, SEVERAL TIMES THROUGHOUT THE PROCESS.
THE DUE DILIGENCE WILL INCLUDE OUR BACKGROUND CHECKS OF ALL THE RESPONDENTS, UM, THAT WILL INCLUDE BASICALLY LOOKING AT THE SECRETARY OF STATE AND STATE COMPTROLLER'S OFFICE TO MAKE SURE THEY'RE IN GOOD STANDING HAD THEY BEEN DEBARRED ON THE STATE OR FEDERAL DEBARMENT LISTINGS.
WE ALSO LOOK AT OUR SS A P ACCOUNTS TO MAKE SURE THAT THEY'RE GOOD STANDING WITH THE CITY, AND THEY DON'T OWE US ANY MONEY.
IF THEY DO OWE US MONEY, WE WILL MAKE THEM CLEAR THAT UP BEFORE MOVING FORWARD.
WE ALSO LOOK AT GOOGLE NEWS AND GOOGLE TO SEE IF THERE'S ANY ARTICLES OUT THERE, UM, THAT MAY BE EITHER POSITIVE OR NEGATIVE WITH RESPECT TO THE RESPONDENTS, IN WHICH CASE THERE WERE ON THIS, IN THIS INSTANCE, WE ASKED FOR REFERENCES, A MINIMUM OF THREE.
WE DO A FINANCIAL REVIEW OF THE COMPANIES TO INCLUDE, UM, LOOKING AT THEIR D B REPORTS DONE IN BRADSTREET.
UM, AUDITED FINANCIAL STATEMENTS IS REQUIRED.
WE ALSO LOOK AT, THEY'RE A PUBLICLY TRADED COMPANY, THE S E C FILINGS FOR THEIR QUARTERLY, WHICH WE DID IN THIS CASE AS WELL.
UM, AND LOOK AT THOSE FILINGS.
I THINK IT'S WHAT YOU WOULD EXPECT FROM A STARTUP COMPANY OR SOMEONE MOVING INTO THE ED MARKET.
THEY HAVE A STRONG CASH POSITION WITH THE ABILITY TO BASICALLY,
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UM, INVEST IN THE INFRASTRUCTURE AND PUT THE PRODUCTS ON THE GROUND.I THINK WITH ANY STARTUP COMPANY OR MOVING INTO THIS MARKET FROM ON THEIR INCOME STATEMENT, THEY ARE SHOWING A LOSS.
UM, AND SPEAKING WITH THEM AND TALKING ABOUT THEIR FINANCIAL PERFORMANCE, THAT'S SOMETHING BASED ON THEIR STRATEGY AND WHERE THIS MARKET'S MOVING, THAT WILL TURN THE CORNER SOMEPLACE IN THE FUTURE TO BE A POSITIVE NET INCOME STREAM.
WE ALSO LOOK AT THEIR PROOF OF INSURABILITY, UM, AND ASK FOR THEIR CERTIFICATE OF INSURANCE.
AS FAR AS THE OUR, THE DUE DILIGENCE PROCESS, WE DO THE DUE DILIGENCE AND THESE CHECKS SEVERAL, SEVERAL TIMES THROUGHOUT THE PROCESS.
WE WILL DO IT PRIOR TO MEETING WITH THE EVALUATION TEAM.
UM, EVERYTHING THAT I SHOWED YOU ON THE PRIOR SLIDE, WE WILL PROVIDE TO THAT TEAM, UM, AND GIVE IT TO THEM FOR THEIR CONSIDERATION.
ALSO, BEFORE GOING TO CITY COUNCIL, WE REFRESH THAT DUE DILIGENCE TO MAKE SURE THAT NOTHING HAS POPPED IN THE INTERIM.
'CAUSE WE DON'T WANT ANY SURPRISES FOR THE CITY OR CITY COUNCIL WHILE SITTING UP THERE AT THE DIOCESE.
UM, BECAUSE OF SOME OF THE, THE QUESTIONS THAT WE HAVE FROM COUNCIL, WE ALSO WENT, SAT BACK DOWN WITH, UM, BLINK EXECUTIVES PRIOR TO THE, PRIOR TO THIS MEETING, GO BACK AND GET SOME CLARITY AROUND THEIR FINANCIALS, WHICH I JUST SPOKE ABOUT.
AND ALSO ON THEIR, UM, THE, SOME OF THE LEGAL LAWSUITS.
WE WILL ALSO, UM, REFRESH OUR DUE DILIGENCE AGAIN WHEN WE GO BACK TO A COUNCIL FOR THE FULL COUNSEL CONSIDERATION.
AS FAR AS THE DUE DILIGENCE, WE DID NOT FIND ANYTHING THAT WE THOUGHT THAT WAS, UH, MATERIAL.
UM, WE DID GET FIVE RESPONSES, UM, AND THE EVALUATION MATRICES ARE INCLUDED IN THIS PRESENTATION FOR YOUR REFERENCE, IF YOU'D LIKE TO GO BACK AND LOOK AT THOSE.
WE DID FIND THE ARTICLE THAT, UM, THE GENTLEMAN MENTIONED AT THE A SESSION ON DECEMBER 10TH REGARDING THE LAW LAWSUITS THAT WERE FILED BY SHAREHOLDERS.
UM, AND WE PROVIDED THAT TO THE ACTUAL EVALUATION COMMITTEE PRIOR TO MOVING FORWARD AND ASKED BLINK DURING THIS EVALUATION FOR MORE INFORMATION REGARDING THAT.
SO ON JANUARY 7TH, IN LAST FROM THE QUESTIONS, THE CITY MANAGER'S OFFICE, CITY ATTORNEY'S OFFICE, UM, THE OFFICE SUSTAINABILITY AND FINANCE ALL MET WITH THE EXECUTIVE LEADERSHIP TEAM AT BLINK THAT'S ON THE CALL TODAY.
AND, UM, ASKED THEM TO KIND OF GO THROUGH THE CLASS ACTION THROUGH OF LAWSUIT.
AND, UM, THEY PROVIDE US WITH THAT BACKGROUND.
UM, I THINK IT'D PROBABLY BE BETTER FOR ANDY OR RAY TO ACTUALLY GO THROUGH AND PROVIDE SOME OF THAT CONTEXT REGARDING THAT CONVERSATION.
UM, AS THE CITY ATTORNEY, CITY ATTORNEY'S OFFICE, ANDY RAY, THANKS, TROY.
AND, AND I'LL, I'LL GO FORWARD ON THE LAWSUITS.
UH, SO BASICALLY THERE WERE, THERE WERE THREE LAWSUITS THAT WERE DISCLOSED.
ONE OF THEM HAD TO DO WITH TERMINATION OF AN EMPLOYEE, SO WE WON'T CONSIDER THAT ONE.
THE OTHER TWO, UH, WERE REGARDING ALLEGATIONS THAT THE COMPANY MADE FALSE OR MISLEADING STATEMENTS DURING THE PUNITIVE PERIOD, WHICH IS A VIOLATION OF THE SECURITIES ACT.
UM, THOSE STATEMENTS DIDN'T, WHILE THEY DIDN'T SPECIFICALLY HAVE A REMEDY THAT WAS SUGGESTED, UM, THEY WOULD MOST CLOSELY PROBABLY BE SEEKING THE AMOUNT OF MONEY THAT THEY PUT INTO THE COMPANY, UH, IN STOCKS.
UH, THESE TWO, UH, ALLEGATIONS, I THINK, UH, BLINK WAS LOOKING TO CONSOLIDATE AND, UH, AND, UH, DEFEND CONCURRENTLY, UH, IN OUR CONVERSATION WITH THE COMPANY, THEY DID, UH, PROVIDE US WITH SOME INFORMATION THAT LED US TO BELIEVE THAT THEY WERE IN A GOOD POSITION TO DEFEND THE LAWSUIT.
OF COURSE, UH, ANY COURT OF LAW AS IS KIND OF A, YOU CAN'T MAKE, UH, CERTAIN PREDICTIONS, BUT WE FELT THAT THEY HAD, UH, PROVIDED US WITH THE INFORMATION TO LEAD US TO BELIEVE THAT THEY COULD SUCCESSFULLY DEFEND THOSE LAWSUITS.
AND IF, IF THEY WERE TO NOT BE ABLE TO DO THAT, THAT THE REMEDIES SEEKING FROM THE, UH, COMPLAINANTS, UH, WOULD NOT BE DETRIMENTAL TO THE COMPANY.
UH, CHAIR, UH, WE ALSO LOOKED AT WHO WAS FILING OR WHO WAS BEHIND THESE LAWSUITS.
AND, UH, YOU KNOW, BLINK GAVE US INFORMATION, AND IT LOOKS LIKE YES, THE, THE PEOPLE THAT ARE BEHIND THESE LAWSUITS, UH, ARE ONE IN WHICH IT'S A COTTAGE INDUSTRY TO FILE THESE, UH, SHAREHOLDER ACTIONS, UH, PARTICULARLY WHEN IT RELATES TO STOCK PRICE.
AND, UH, UH, BELIEVE IT OR NOT, THE PLAINTIFFS HAD A VESTED INTEREST AT THE TIME.
THEY FILED A LAWSUIT IN SEEING THAT THE STOCK WENT DOWN, NOT UP.
UM, 'CAUSE THERE WERE A LOT OF, A LOT OF, UH, THEY ARE, UH, SHORT SELLERS.
IN OTHER WORDS, UH, THEY DO, UH, STOCK TRADING SOMETIMES WITH THE BET THAT THE COMPANY'S STOCK
UH, THEY HAD SOME INTEREST IN SEEING THAT THE STOCKS PRICE WOULD GO DOWN.
UH, BUT AS, AS RAY AND TROY HAVE, HAVE INDICATED, UH, SINCE THAT LAWSUIT, AGAIN ALLEGING THAT BECAUSE OF THE COMPANY'S ACTIVITIES, THE STOCK PRICE WAS, UH, NEGATIVELY IMPACTED, UH, THE STOCK HAS AT LEAST
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DOUBLED SINCE THEN.SO, UH, AGAIN, LOOKING AT THE LAWSUIT, LOOKING AT WHO THE PLAINTIFFS ARE, UH, LOOKING AT HOW THESE, UH, HAVE USUALLY PLAYED THEMSELVES OUT, UH, WE CONCUR WITH LENNOX'S ASSESSMENT THAT THEY PROBABLY WILL BE SUCCESSFUL IN TERMS OF DEFENDING IT.
WELL, LET ME ASK YOU, ANDY, WOULD YOU INVEST IN THIS COMPANY?
YEAH, I'D HAVE TO TALK TO MY WIFE TOO.
UM, GO AHEAD AND, AND CONTINUE PLEASE, COUNCILMAN, BARRING ANY OTHER QUESTIONS? UM, THAT CONCLUDES THE DUE DILIGENCE REPORT.
WE TALKED ABOUT THE FINANCIALS, WE TALKED ABOUT THE LEGAL ASPECTS.
IF THERE'S ANY QUESTIONS FROM THE COMMITTEE, WE'D BE HAPPY TO ANSWER ANY ADDITIONAL QUESTIONS.
ONLY THING I WOULD ADD, TROY, WAS YOUR LAST BULLET, AND KNOWING THAT, UH, BLINKS CHARGING, THEY'RE NOW BEING, UH, RECOMMENDED THROUGH FORBES 2020 21 AS ONE OF THE 100, UH, AMERICAN BEST SMALLEST SMALL COMPANIES.
UH, THAT WAS ALSO NOTED, I THOUGHT WAS WORTH MENTIONING.
AND DAVID, I, I DON'T KNOW IF IT, IT'S YOU OR ONE OF OUR, UM, GUESTS FROM BLINK, BUT CAN SOMEBODY ALSO TALK TO THE EQUIPMENT AND, UH, YOU KNOW, MAINTENANCE STATUS, THINGS LIKE THAT? 'CAUSE THOSE QUESTIONS CAME UP AS WELL.
YEAH, I'D LIKE TO INVITE A REPRESENTATIVE OF THE COMPANY TO, UH, GIVE US TWO OR THREE MINUTES OF HIS TIME TO KIND OF, UH, REASSURE US A LITTLE BIT FURTHER, UH, WHO WOULD BE REPRESENTING THE COMPANY AND SPEAKING AT THIS TIME.
I'M THE CHIEF, UH, EXECUTIVE, NOT, EXCUSE ME, I'M PROMOTED MYSELF, CHIEF OPERATING OFFICER, UH, OF PLAYING CHARGING.
UH, I'M A LONG TIME INDUSTRY VETERAN, SO I'VE BEEN AROUND N E V CHARGING, UM, SINCE THE EARLY DAYS.
I WORKED AT NISSAN FOR 21 YEARS, UH, LED THEM IN THEIR EFFORTS TO BRING THE LEAF TO MARKET, AND THEN WENT ON TO ENGAGE WITH SEVERAL OTHER COMPANIES.
LAST WAS THE C O O OF ELECTRIFY AMERICA.
AND THEN A YEAR AGO I CAME ON BOARD TO RESTRUCTURE, UM, BLINK, UH, FOR EXPONENTIAL GROWTH.
UH, AND INDEED THAT'S WHAT WE'VE SEEN THIS YEAR.
SO, TO, TO TALK ABOUT THE COMPANY'S FINANCIAL POSITION.
UM, YOU KNOW, CASH ON HAND RIGHT NOW IS IN EXCESS OF, UH, 200 AND, UH, $30 MILLION IN THE BANK.
UM, UH, SO WE HAVE AN EXCELLENT CASH POSITION.
UM, I DID HEAR SOME, UH, COMMENTS ABOUT THE STOCK.
THE STOCK IS 200% UP FROM WHERE IT WAS, UH, WHEN THOSE, UH, SHAREHOLDER SUITS WERE FILED.
TO GIVE SOME CLARITY ON THE SHAREHOLDER, UH, ISSUES, IT'S ONE AND A HALF.
SHAREHOLDERS, WE SAY ONE AND A HALF BECAUSE, UH, ONE OF THEM ACTUALLY, UH, MADE MONEY WHEN THEY SOLD.
SO, UH, ALL THAT WILL COME OUT.
UM, THE SUITS HAVE BEEN CONSOLIDATED, THERE'LL BE, UH, LITIGATED, UH, IN THE STATE OF FLORIDA.
UM, AND THEN, UM, WE, OUR MOTION TO DISMISS WILL TAKE PLACE, UH, SOMETIME IN APRIL.
UH, WE HAVE ALL THE HIGHEST CONFIDENCE IN THE WORLD BASED ON THE NATURE OF THE SUIT, THE VALUATION OF THE COMPANY, UH, ET CETERA.
WE'RE NOW BETWEEN A 1.8 AND, UH, UH, $200 BILLION COMPANY, DEPENDING ON, UH, $2 BILLION COMPANY, EXCUSE ME.
UH, DEPENDING ON HOW THE STOCK IS TRADING ON ANY GIVEN DAY.
UH, SO FINANCIALLY WE'RE IN A GOOD POSITION IN TERMS OF EQUIPMENT.
UM, RIGHT NOW WE HAVE ONE OF THE BEST, UH, WHAT'S CALLED A 19.2, UH, KILOWATT, L TWO CHARGING STATION, UM, THAT HAS RECEIVED HIGH MARKS ON BOTH QUALITY, UH, RELIABILITY, UM, AND THE FLEXIBILITY OF THE EQUIPMENT, WHICH IS ONE OF THE REASONS WE BELIEVE WE'RE IN A GOOD POSITION ON THE BUILD.
IT, IT WILL CHARGE, UH, LEGACY VEHICLES.
AT THE SAME TIME, IT WILL CHARGE AT A HIGH RATE NEW VEHICLES THAT ARE ENTERING THE MARKET.
UM, RIGHT NOW, IF YOU LOOK AT AN ESTIMATE FROM AUTOMOTIVE COMPANIES ACROSS THE GLOBE, THERE ARE OVER $300 BILLION WORTH OF EV INVESTMENT, UH, THAT THEY PUT IN THE TABLE IN TERMS OF PRODUCTION, THOSE VEHICLES ARE COMING.
UH, SO, UH, THE CITY OF SAN ANTONIO MADE THE WIDE CHOICE, WISE CHOICE NOT ONLY TO PICK A COMPANY, UH, THAT KNOWS HOW TO OPERATE CHARGING STATIONS, BUT ALSO FUTURE-PROOFED THE L TWO CHARGERS.
SO 3, 4, 5, 6 YEARS DOWN THE ROAD, YOU DON'T NEED TO RIP THEM OUT, UH, BECAUSE WE ALREADY TAKE THAT INTO CONSIDERATION AND WE CAN CHARGE ALL, AND WE CAN CHARGE ALL THE VEHICLES.
SO WITH THAT, THAT'S MY BRIEF COMMENTS, UH, AND I'M OPEN TO ANY QUESTIONS, UH, YOU MAY ASK.
THANK YOU, CHAIR, AND THANK YOU MEMBERS OF THE, UH, THE AUDIT COMMITTEE.
OKAY, MR. JONES, LET ME ASK YOU, HOW MANY UNITS DO YOU HAVE IN PLACE IN THE GROUND AROUND THE COUNTRY TODAY? SO, UH,
[00:30:01]
ROUGHLY THE, THE AMOUNT OF CHARGERS THAT WE HAVE IN OPERATION TODAY IS NORTH OF 5,000 THAT ARE OPERATING OWNER OPERATED STATIONS.UM, WE HAVE MORE UNITS THAT, WHAT WE CALL OUR SITE HOST OPERATED.
AND WHAT THAT MEANS IS WE SOLD A CHARGER TO SOMEONE, THEY OWN IT, AND THEY OPERATE IT ON THEIR OWN.
WE PROVIDE NETWORKING SERVICES TO THAT COMPANY.
UM, IT THE ROUGH, THERE'S ABOUT 3000 CHARGERS THAT FIT INTO THAT CATEGORY, UH, WHERE THE OWNER OWNS THEM, UH, IN THAT.
AND THEN WE HAVE A, SOME RESIDENTIAL UNITS WHERE WE JUST, UH, PROVIDE SERVICE TO AS NEEDED FOR RESIDENTIALS.
AND WHAT'S YOUR MANUFACTURING CAPABILITY? HOW MANY UNITS CAN YOU PRODUCE A MONTH? UM, AS MANY AS WE NEED RIGHT NOW.
SO, UH, WE HAVE A, WHAT WE CALL A CONTRACT MANUFACTURING PROCESS, UH, THAT OUR UNIT IS BUILT FOR US AND DESIGNED FOR US UNDER OUR SPECIFICATIONS IN IP.
UM, AND WE CAN UP PRODUCTION, UH, FROM, YOU KNOW, RIGHT NOW WE'RE AVERAGING ABOUT WHEN I DO AN ORDER, I GET ABOUT A THOUSAND IN, UH, I CAN GO AS HIGH AS FIVE, 5,000 A MONTH ON THAT AND GO EVEN HIGHER IF NEED BE.
UH, AND WITH SOME OF THE ENGAGEMENTS WE'RE FACING RIGHT NOW, UH, WE ARE GONNA NEED TO UP OUR PRODUCTION AND WE HAVE THE CAPACITY TO DO SO.
ONE FINAL QUESTION THAT I HAVE, UH, SOME OF THE OTHER MEMBERS MAY HAVE QUESTIONS.
UH, I'M ALWAYS A LITTLE LEERY WHEN SOMEBODY SAYS, OH, WE'VE GOT ALL OF THESE GREAT GRADES ON HOW GOOD OUR EQUIPMENT IS, AND, YOU KNOW, UH, THINGS OF THAT NATURE.
WHO, WHO TOLD YOU THAT YOU HAD SUCH GREAT EQUIPMENT? YOU MENTIONED SEVERAL STATEMENTS AROUND THAT.
YEAH, NO, YOU KNOW, THERE'S, IT, IT MOSTLY IS, IT'S FEEDBACK FROM, UH, THE USERS OF THE EQUIPMENT.
SO, AS YOU MIGHT IMAGINE, WE HAVE WHAT IS CALLED A SITE HOST CONTRACTS WITH COMPANIES, UH, ACROSS THE UNITED STATES.
UH, AND IT'S THEIR FEEDBACK AND, AND THE DRIVER'S FEEDBACK.
UM, AND, YOU KNOW, WITH ALL CHARGING STATIONS AND WITH ALL E EV COMPANIES, SO I'VE, I'VE BEEN A MEMBER OF THREE DIFFERENT INFRASTRUCTURE.
YOU HAVE YOUR OLDER EQUIPMENT, WHICH YOU'RE LOOKING TO UPGRADE OVER TIME, AND THEN YOU HAVE A NEWER EQUIPMENT.
AND ON A NEWER EQUIPMENT, WE'RE GETTING RAVE REVIEWS.
MR. JONES, ARE THERE ANY OTHER COMMITTEE MEMBERS WHO HAVE QUESTIONS EITHER FOR MR. JONES OR THE STAFF? COUNCILMAN PERRY.
UM, TROY, I, I UNDERSTAND LOOKING AT THE, YOU KNOW, THE MARKET AND, AND, UH, LOOKING AT WHERE THE COMPANY COMPANY WAS, WHERE, WHERE IT IS TODAY, AND READING THE ANALYSIS ON THE STOCK MARKET.
BUT, YOU KNOW, THE STOCK MARKET, AS FAR AS I'M CONCERNED RIGHT NOW, IS CRAZY.
WHO KNOWS WHAT, WHERE WE'RE REALLY AT AS FAR AS STOCK PRICES AND THAT KIND OF THING.
DID Y'ALL EVER REACH OUT TO THE PLAINTIFFS, SO, UH, THE, THESE LAWSUITS TO GET THEIR PERSPECTIVE ON IT? I MEAN, I'M JUST, I READ OVER THE, UH, THE ACTUAL, UH, DOCUMENT AND UH, UH, I THINK SOME OF THE THINGS THAT COUNCILMAN ELIAS WAS TALKING ABOUT WAS NOT NECESSARILY THE STOCK PRICES OR, OR THAT KIND OF THING, BUT THOSE ALLEGATIONS IN THAT, IN THAT LAWSUIT.
DID, DID Y'ALL FOLLOW UP ON ANY OF THAT? LIKE THE MAINTENANCE OF THE, UH, THE UNITS THEMSELVES? HOW MANY WERE OPERATIONAL? HOW MANY DID THEY HAVE VERSUS WHAT, WHAT THEY, UH, CLAIMED, THAT KIND OF THING? COUNCILMAN? UH, WE DID NOT REACH OUT TO THE PLAINTIFFS.
UM, IN THE DISCUSSION WE HAD WITH GLEN, ONE OF THE THINGS THAT BECAME CLEAR WAS THAT THERE'S A NUMBER OF, UH, OH, WE'VE LOST YOU.
IS THAT RAY? YES, THAT WAS RAY.
I CAN FOLLOW UP THOUGH, COUNCILMAN.
UH, AS RAY SAID, WE DON'T REACH OUT TO THE PLAINTIFFS.
THAT'S NOT PART OF OUR DUE DILIGENCE PROCESS, AS YOU MIGHT IMAGINE, UH, YOU KNOW, IN ANY LITIGATION, UH, BOTH PARTIES HAVE TO BE CAREFUL WHO THEY CONTACT AND WHO THEY SPEAK TO THAT LITIGATION ABOUT.
UH, SO WE WOULDN'T RECOMMEND THAT WE START REACHING OUT TO PLAINTIFFS, UH, 'CAUSE I, AND THE O THE OTHER RISK IS THAT MAY BRO, THE CITY IN LITIGATION, GIVEN THAT THE COMPANY THAT WE'RE LOOKING TO DO BUSINESS WITH IS BLINK.
THAT'S THE COMPANY THAT WE REACH OUT TO AND ASK FOR INFORMATION ON THESE THINGS.
WE LOOKED, THERE ARE OTHER ALLEGATIONS BESIDE THE STOCK, UH, THAT WE LOOKED AT IN TERMS OF THEIR OPERATIONS OR FINANCES, AND LIKE YOU SAID, THE, THE EQUIPMENT AND THE MAINTENANCE.
AND, UM, AND, UH, AGAIN, THEY'RE HERE TO TALK TO IT, UH, TALK TO IT ABOUT IT.
UH, BUT YOU KNOW, DAVID, AND, AND, AND TROY CAN ALSO SPEAK TO IT AS WELL.
WELL, LET, LET'S JUST GO THROUGH THESE.
I'VE GOT SOME QUESTIONS HERE THAT, AND ONE OF THE THINGS WAS THAT THEY CLAIMED THAT THEY HAD 15,000, UH, CHARGING STATIONS.
AND, UM, YOU KNOW, WHEN THEY WENT THROUGH IT, THEY DIDN'T FIND NEARLY THAT MANY CHARGING STATIONS THAT,
[00:35:01]
UH, THEY CLAIMED THEY HAD ON, ON THE BOOKS.IS THAT, IS THAT QUESTION, UH, DIRECTED A BLINK OR, I, I DON'T, I DON'T CARE WHO IT GOES TO, TO SOMEBODY ANSWER IT.
SO, YEAH, SO, AND LET ME LEMME BACK UP TO THE BEGINNING.
SO, UH, WHEN WE TALK ABOUT STATEMENTS OF THIS NATURE, WE USE AS OUR SOURCE, ALL OF OUR S E C FILINGS AND OUR S E C FILINGS HAVE BEEN CORROBORATED, UM, TO THE AMOUNT OF UNITS THAT WE HAVE SOLD, DEPLOYED, AND HAVE IN OPERATION.
THE ISSUE THAT WAS BROUGHT UP, UH, IS THAT, YOU KNOW, 15,000 UNITS, WHAT COMPRISES OF THAT? IT'S THREE SEPARATE ELEMENTS.
YOU'VE GOT UNITS THAT ARE OWNED AND OPERATED.
SO THOSE ARE THE ONES WHERE YOU'RE TAKING CARE OF.
AND WE HAVE AN OBLIGATION TO PERFORM DAILY MAINTENANCE ON IT.
YOU HAVE UNITS THAT ARE SITE HOST, OWNED AND OPERATED, AND IT'S UP TO THE SITE HOST WHETHER THEY WANNA ENGAGE IN, UH, MAINTENANCE ON THOSE CHARGERS.
AND THEN YOU HAVE RESIDENTIAL UNITS, UH, THAT WE'VE INSTALLED.
SO THAT COMPRISES THE TOTAL AMOUNT OF UNITS.
NOW, WHEN WE TALK ABOUT WHAT WAS STATED, UM, THIS WAS IN A SHORT SELLER REPORT BY A GROUP CALLED EPPER.
IF YOU TRY AND FIND THIS GROUP TODAY, YOU CANNOT, IF YOU TRY AND FIND AN INDIVIDUAL, YOU CANNOT, YOU, THEY ARE A GHOST.
UH, WE DID AN EXTENSIVE INVESTIGATION ON 'EM.
THEY'RE IN FACT, A SHORT SELLER.
THEIR JOB IN THE REPORT WAS TO STRING TOGETHER INFORMATION, FACTUAL OR NOT, IN ORDER TO DRIVE DOWN THE STOCK PRICE OF THE COMPANY.
UH, THIS PRACTICE IS AN UNFORTUNATE PRACTICE THAT THE INDUSTRY FACES TODAY.
UH, WE PUT OUT SEVERAL STATEMENTS IN IT, UH, AND WE STAND BY OUR AUDITED FILINGS, AND WE GO THROUGH A LOT, AND I'LL, I'LL GIVE YOU CONFIDENCE HERE THAT WE JUST WENT THROUGH AN EXTENSIVE RAISE ON FINANCING AND WENT THROUGH THE MOST EXHAUSTIVE DUE DILIGENCE, UH, BECAUSE BARCLAYS, UH, CHOSE AS A BANK AND FINANCIAL INSTITUTION TO BACK BLANK.
UH, AND I CAN ASSURE YOU THAT BARCLAY'S DUE DILIGENCE ON THE ENTIRE COMPANY, UH, TO BE OUR BANKER, UH, AND TO RAISE FUNDS FOR US WAS FAR MORE EXTENSIVE THAN ANYTHING WE'VE EVER GO THROUGH.
AND THEY LOOKED AT ALL THESE ALLEGATIONS AND THOROUGHLY REJECTED THESE ALLEGATIONS OF THOSE, OF A SHORT SELLER BENT ON MAKING A PROFIT ON UNDERSELLING IN AC COMPANY.
UH, AGAIN, UH, THE LAWSUITS WERE BASED PRIMARILY ON THE CULPEPER REPORT.
UH, WE'VE DEFENDED OURSELVES AGAINST IT AND WE'LL CONTINUE TO DO SO, AND WE HAVE HIGH CONFIDENCE THAT THESE CASES WILL BE DISMISSED.
UM, UH, I, I UNDERSTAND WHERE YOU'RE COMING FROM ON THE DIFFERENT TYPES OF UNITS, THAT KIND OF, THE THING THAT, UH, I GUESS BOTHERS ME MORE IS THE ACTUAL UNITS THAT THEY IDENTIFIED THAT WERE NOT EVEN MAINTAINED.
THEY WERE, UH, OUT OF SERVICE FOR A NUMBER OF DIFFERENT REASONS THAT, UH, I THINK THEY QUOTED, UH, ABOUT 67% WERE, WERE OPERATIONAL VERSUS THE, UH, NON-OPERATIONAL.
AND, UH, YOU KNOW, I, I WOULD CERTAINLY NOT WANT TO HAVE, YOU KNOW, DONATE CITY PROPERTY AND HAVE SOMETHING THAT'S THERE THAT ISN'T FUNCTIONING, IT'S NOT MAINTAINED AND, AND, UH, OPERATIONAL FOR CUSTOMERS TO BE USING.
AND THANK YOU COUNCILMAN PERRY FOR THAT.
SO, UM, YOU KNOW, UNDER OUR OWNER OPERATED MODEL, WHICH IS THE AGREEMENT THAT WE ARE ENGAGING WITH THE CITY, ALL, ALL THE CHARGERS WILL BE MAINTAINED.
THAT'S THE COMMITMENT, AND THAT'S THE ESSENCE OF THAT.
IN OUR CURRENT CHARGERS THAT ARE UNDER THE OWNER OPERATED MODEL, UH, WE ARE MAINTAINING ALL OF THOSE CHARGERS.
UH, I, UH, I CAN'T GO INTO THE 67% NU NUMBER, EXCEPT IT'S NOT ACCURATE.
AND THEY, THE COMPANY DIDN'T DO A DUE DILIGENCE ON BLANK.
UH, WHAT THEY DID DO IS, SO SOME PICTURES OF CHARGERS THAT ARE PRIVATELY OWNED.
AND WHEN YOU SELL A PIECE OF EQUIPMENT, JUST LIKE YOU'RE SELLING ANY TYPE OF EQUIPMENT TO A SITE HOST, WE CAN PLEAD WITH THEM, WHICH WE DO.
WE SEND EXHAUSTIVE EMAILS TO THEM.
DO YOU WANT A NEW CHARGER? DO YOU WANT A MAINTENANCE AGREEMENT ON THIS CHARGER? DO YOU WANT US TO FIX THE CHARGER? UH, BUT INDEED IT IS THEIR EQUIPMENT ON THEIR PROPERTY.
UH, AND UNLESS THEY AGREE TO HAVE IT SERVICED, THERE'S NOT A WHOLE LOT WE CAN DO ABOUT THAT.
UH, THIS IS SIMILAR TO ANYONE THAT EXISTS IN THE INFRASTRUCTURE SPACE TODAY THAT HAS OLDER EQUIPMENT OUT THERE.
UH, ONE OF OUR COMPETITORS HAS, UH, ENORMOUS AMOUNTS OF CHARGERS THAT ARE TWO G.
UM, THOSE CHARGERS ARE NOW NO LONGER SERVICEABLE ON THEIR NETWORK, SO CUSTOMERS CANNOT USE THOSE CHARGERS.
SO THE SITE HOST HAS A CHOICE TO EITHER UPGRADE
[00:40:01]
THOSE CHARGERS OR JUST LEAVE A BROKEN CHARGER THAT'S UNM MAINTENANCE AND CAN'T BE USED ON THE SITE.THAT'S BECAUSE THAT IS WHERE THE OWNER OWNS THE CHARGER AND MAINTAINS HIS CHARGER.
SO THERE'S NOTHING THAT COMPANY CAN DO UNLESS THEY BUY A NEW CHARGER TO GET A WORKING CHARGER IN PLACE.
IT'S A BIT OF AN ISSUE IN THE INDUSTRY AS A WHOLE, AND OUR JOB IS CONTINUES TO WORK WITH THOSE INDIVIDUAL OWNERS, GIVE THEM A DISCOUNT PIECE OF EQUIPMENT, CAJOLE THEM, PLEAD WITH THEM TO SAY, HEY, WHY DON'T YOU UPGRADE FOR THE CITY OF SAN ANTONIO? IT'S AN OWNER OPERATED MODEL.
SO THAT'S NEVER GONNA BE THE CASE.
WE'RE ALWAYS THERE TO SERVICE THOSE.
WE HAVE A NATIONAL SERVICE VENDOR.
UM, AND I THINK OUR FINANCIAL POSITION IN HISTORY ON THE OWNER OPERATED MODEL IS PRETTY POSITIVE.
UH, AND THAT YOU CAN REST ASSURED THAT WE WILL SERVICE THOSE UNITS FOR THE LIFETIME OF THE ENGAGEMENT.
THIS IS DAVID KERRY, COUNCILMAN.
UM, I ALSO WANTED TO SHARE THAT AND REMIND EVERYBODY THAT THIS IS A COST NEUTRAL, UH, AGREEMENT.
UH, THEY'RE IN IT FOR THE, THE LONG HAUL.
WE'RE LOOKING AT IT AS A MARATHON.
THERE'S NOT ANY EV UH, COMPANIES THAT HAVE MADE PROFIT, UH, TO DATE.
THIS IS ON THE FRONT END OF WHAT SHOULD BE LOOK WHAT, WHAT IT'LL LOOK LIKE IN THE FUTURE.
SO JUST A REMINDER OF THE COST OF THE TROUBLE.
SO LEMME LEMME JUST ASK, UH, BECAUSE I THINK IT'S GETTING TO SOME OF THE QUESTIONS THAT YOU'RE ASKING.
UM, AND BRENDA, THANKS FOR SHARING THAT INFORMATION, BUT I THINK, UH, RAY OR TROY CAN, ONE, DON'T YOU JUST TALK A LITTLE BIT ABOUT THE TERMS THAT ARE IN OUR CONTRACT, UH, BECAUSE I THINK THAT'S IMPORTANT IN TERMS OF HOW WE PROTECT THE CITY.
UH, WE'VE DONE OUR DUE DILIGENCE, WE'RE COMFORTABLE MOVING FORWARD.
BUT HAVING SAID THAT, WE ALSO HAVE A CONTRACT IN PLACE THAT, THAT, THAT PROTECTS OUR, UH, OUR POSITION AS WELL.
SO I'D ASK ONE OF THEM TO, TO MAYBE, UH, SUMMARIZE THAT.
AND I THINK IT'S ACTUALLY A SLIDE 11 TALKS A LITTLE BIT ABOUT IT.
AND, AND I'LL BEGIN, BEN, AND THEN I'LL LET TROY FINISH UP THE CONTRACT ITSELF.
AND LIKE BEN SAYING IT'S COST NEUTRAL, UH, BUT THERE ARE PERFORMANCE REQUIREMENTS THAT BLINK HAS, HAS TO CONTINUE.
ONE OF THE DISTINCTIONS THAT I DON'T THINK WE EMPHASIZED ENOUGH, UH, THE FIRST TIME WE WE DISCUSSED THIS IS THAT THIS IS GOING TO BE MAINTAINED BY BLINK.
AND THAT'S NOT ALWAYS THE CASE IN THESE TYPES OF CONTRACTS.
SO THEY HAVE AN OBLIGATION TO MAKE SURE THESE TARGET STATIONS ARE WORKING OR AVAILABLE.
UH, WHEN, WHEN YOU PURCHASE ONE OF THESE UNITS AS AN OWNER, THEN IT'S YOUR OWN RESPONSIBILITY AT YOUR OWN COST TO DO THAT KIND OF MAINTENANCE.
AND MAYBE YOU DO IT, MAYBE YOU DON'T, BUT IF IT HAS BLINKS NAME ON IT THERE, YOU ASSUME IT'S THEIR UNIT, YOU'RE GONNA ASSUME THEY'RE NOT DOING THE MAINTENANCE.
SO THAT WAS ONE OF THE THINGS THAT WE CLARIFIED IN THE PREVIOUS MEETING.
BUT WE DO HAVE YOU THINK, I'M SORRY, GO AHEAD.
NO, I WAS GONNA SAY, JUST, JUST ADDING ONTO THAT, I THINK THERE'S SOME, SOME SAFEGUARDS IN THERE FOR THE CITY CONTRACTUALLY THAT WE BUILT INTO THIS CONTRACT.
THE TERM IS A, IT'S A ONE YEAR TERM AND IT RENEWALS ANNUALLY FOR FIVE YEARS.
I THINK THERE'S POINT, IT IS COST NEUTRAL TO THE CITY, WHICH WAS A BIG, BIG, UM, REQUIREMENT IN THE R F P.
I THINK ONE OF THE OTHER THINGS THAT'S REALLY IMPORTANT, I THINK THAT MAY GET TO THE HEART OF SOME OF THE QUESTIONS THAT THE COUNCIL MEMBERS ASK DURING THE, UM, DURING THE A SESSION OR ABOUT, UM, THE FINANCIAL STABILITY AROUND A STARTUP COMPANY IS WHAT HAPPENS IN THE EVENT THAT THAT BLINK IS NOT SUCCESSFUL AND THEY GO AWAY.
WELL THEN I THINK ONE OF THE KEY THINGS IS ALL THE INFRASTRUCTURE AND THAT OWNERSHIP OF ALL THAT INFRASTRUCTURE REVERTS BACK TO THE CITY.
SO WE WOULD HAVE AN OPPORTUNITY TO EITHER MAINTAIN IT OURSELF OR WE COULD FIND ANOTHER PROVIDER TO, UM, MOVE FORWARD WITH THAT.
THE OTHER PIECE IS, EVEN THOUGH THIS IS COST NEUTRAL, ONCE BLINK ACTUALLY, UM, COVERS ALL THEIR INVESTMENT COSTS INTO THE, INTO THE CAPITAL, THEN THERE, THERE WOULD BE A 50 50 REVENUE SHARE BETWEEN THE CITY AND BLINK AS WELL.
UM, SO I THINK THOSE ARE SOME OF THE KEY PROVISIONS WITHIN THIS, UM, WITHIN THIS CONTRACT THAT ACTUALLY GIVE SEVERAL PROTECTIONS TO THE CITY, UM, AS WE MOVE FORWARD THIS POINT.
UM, WE TALK ABOUT, I UNDERSTAND COST NEUTRALITY AND TROY, YOU JUST MENTIONED IT AS SOON AS THEY GET THEIR INFRASTRUCTURE PAID FOR A 50 50, IS THAT, DID YOU SAY 50 50 SPLIT WITH THE CITY OR WHAT, WHAT IS THE REVENUE SHARE? IT'S A, IT'S A 50 50 REVENUE SHARE AFTER ALL THE PROJECT COSTS ARE MET.
AND, AND WHAT'S THE TIMELINE FOR THAT? WHAT'S, WHAT'S THE TIMELINE FOR THAT BREAKEVEN POINT OR WHENEVER THE CITY GETS TO START SHARING IN THAT REVENUE? I DON'T, I DON'T KNOW WHAT THE TIMELINE IS.
I THINK A LOT OF IT'LL BE DEPENDENT AND DOUG MAY BE ABLE TO SPEAK TO THE SPARE AND I CAN TO DEPEND ON THE ROLLOUT OF THAT EQUIPMENT, UM, OVER THE TERM OF THE CONTRACT.
AND HOW MANY, I'M, I'M SORRY COUNCILMAN.
UM, I WAS JUST, THAT WAS ONE OF THE QUESTIONS THAT WE HAD
[00:45:01]
ASKED THE, THE BLANK TEAM, AND I THINK THERE'S, THERE'S NUMEROUS THINGS ASSOCIATED WITH THAT THERE AND BEING ABLE TO, TO GET THOSE, UM, UH, T C E Q UM, UH, GRANT DOLLARS, WHICH IS REALLY KEY, UH, $2,500 PER NATION.AND THEN I THINK IT'S JUST THE, HOW, HOW QUICKLY COULD WE EXPEDITE THE ROLLOUT AND GET THESE, THESE, UH, UNITS INTO ACTIVE SERVICE? UH, I WOULD'VE THOUGHT THAT THERE'S A FORECAST SOMEWHERE ON, OKAY.
ASSUMING THIS, THEREFORE THAT, UH, THAT THERE WOULD BE A TIMELINE ASSOCIATED WITH THAT.
CAN THE COMPANY ADDRESS THAT AT ALL? TONY, DO YOU HAVE A, A FORECAST ANALYSIS ON ROLLOUT? SO WE HAVE, UM, I MEAN WE RAN IT BASED ON, UH, FINISHING IN DECEMBER, SO WE'VE PUSHED THAT BACK, RIGHT? AND DEPENDING NOW WHEN WE GET APPROVAL, WHEN WE COULD SUBMIT AND GET OUR, YOU KNOW, IF WE GET THE MONEY FROM, UH, THE TEXAS GRANT, UM, THERE'S A SCENARIO THERE.
IF WE DON'T GET TEXAS GRANT MONEY, THERE'S A SCENARIO THERE.
THE OTHER ASPECT OF IT IS, IS, YOU KNOW, WHEN, WHERE, UM, SO IT'S VERY DIFFICULT FOR US TO SAY AN ACTUAL TIME.
UM, BUT WE DO HAVE A PLAN, UH, WITHIN A TWO YEAR PERIOD TO, UH, TO BREAK EVEN.
SO, BUT I DON'T WANNA GIVE YOU A DATE 'CAUSE WE DON'T KNOW, YOU KNOW, THERE'S TOO MANY VARIABLES, UH, COUNCIL MEMBER.
WELL, I, I, I KNOW AT THIS POINT THERE'S A LOT OF VARIABLES, BUT STILL YOU HAVE SOME KIND OF A FORECAST ON WHEN YOU EXPECT TO BREAK EVEN AND, AND, UH, START THIS, UH, SHARE WITH THE CITY.
I, I, I, I UNDERSTAND THAT IF, IF THERE'S A DIFFERENT SCENARIO OR SOMETHING I, YOU KNOW, I I HOPE THE CITY STAFF IS INVOLVED IN, OKAY.
THIS ISN'T GONNA, UM, PENCIL OUT IN TWO YEARS.
IT'S GONNA BE FIVE YEARS DOWN THE ROAD OR WHATEVER THAT DATE IS, THAT THERE'S SOME EXPECTATION OF REVENUE FOR THE CITY.
UH, SO DOUG, HOW MANY OF THESE UNITS ARE WE GONNA FIELD AND THE LOCATIONS OF THOSE UNITS? HOW MANY ARE WE TALKING ABOUT AND WHERE? SO THE INITIAL, UH, PROPOSAL IS 32 SITES, UM, WHICH, UH, INCLUDE UM, 142 PORTS, UH, BETWEEN LEVEL TWO AND, AND LEVEL.
UH, WE STILL NEED TO T THOSE SITES.
UH, I THINK WE NEED TO, UM, GET ON THE GROUND, TAKE A LOOK AT, THINK YOU WILL BE LOOKING AT SENIOR CENTERS.
UH, WE'LL BE LOOKING AT, UM, PARKS, PLACES WHERE PEOPLE ARE GONNA DWELL FOR, FOR, FOR A FEW HOURS.
UH, AND THEN THE OTHER KEY PART OF IT IS THE EQUITY PART.
UH, WE, WE WANNA MAKE SURE THAT THERE'S EQUITABLE ACCESS.
WE'RE NOT JUST PUTTING THEM IN THE, THE MOST AFFLUENT PARTS OF THE CITY, BUT THAT'S, THAT'S THE NEXT STEP IS REALLY SORT OF FIGURING OUT THE SORT OF THE WHERE, UM, WE'RE GONNA PUT THEM.
WE HAVE A LIST, BUT WE NEED TO THOROUGHLY VET THOSE.
AND WHATEVER THE LOCATIONS AND THE NUMBERS OR WHATEVER, ZERO COST FROM THE CITY.
THAT'S WHAT I WANNA MAKE SURE OF.
UH, THAT NOBODY COMES BACK SAYING, UH, WELL YEAH, WE'VE GOT TO, UH, C P S NEEDS TO UPGRADE THIS, OR THEY NEED TO UPGRADE THAT.
NO COST TO THE CITY OR C P S OR ANY OTHER UTILITY ASSOCIATED WITH THIS AND, AND THE COST, THE CONTRACT'S CLEAR ON THAT.
UH, THAT'S, THAT'S ALL MY QUESTIONS, UH, CHAIR, THANK Y'ALL VERY MUCH FOR YOUR ANSWERS.
LET ME ASK IF THERE ARE ANY QUESTIONS FROM OTHER COMMITTEE MEMBERS.
A HEARING NONE, SEEING NONE THEN UH, I WOULD RECOMMEND THAT THIS COMMITTEE MAKE A RECOMMENDATION TO COUNCIL, UH, A RECOMMENDATION SAYING WE HAVE REVIEWED, UH, AND BEEN BRIEFED ON, ON THIS PROJECT AND THAT WE FIND NO REASON FOR THE CITY NOT TO CONSIDER IT AT THE NEXT COUNCIL MEETING.
AND I THINK, ANDY, IS THAT A FAIR RECOMMENDATION TO MAKE? IT'S SCHEDULED FOR FEBRUARY THE FOURTH TO GO BACK FOR COUNCIL WITH YOUR APPROVAL.
SO I ENTERTAIN MOTION TO, UH, APPROVE RECOMMENDATION TO THE COUNCIL FOR COUNCIL CONSIDERATION AFTER REVIEWING THE DUE DILIGENCE THAT'S BEEN CONDUCTED BY THE CITY.
IS THERE A SECOND? I'LL SECOND IT.
ALL IN FAVOR SIGNIFY BY SAYING AYE.
ITEM NUMBER EIGHT IS APPROVED AND RECOMMENDED TO THE CITY FOR THEIR CONSIDERATION.
[00:50:01]
UH, LET ME GO BACK AND ORDER AND SEE IF, UH, RAZZIE HAD, UH, RECEIVED ANY OTHER INFORMATION REGARDING ITEM SEVEN.UH, I KNOW WE HAD TALKED ABOUT PARK POLICE, BUT GOING ALONG WITH THAT WAS THE OTHER POLICE, UH, DEPARTMENT AND, UH, RAZZIE, HAD YOU CHECKED ON THAT COUNCIL, WERE YOU ABLE TO GET THAT INFORMATION? COUNCILMAN, COUNCILMAN? I HAVE, BUT I LIKE TO HAVE FEW MORE MINUTES TO STAFF TO CONFIRM THE NUMBER.
I HAVE THE NUMBER IN FRONT OF ME, BUT WE ARE CONFIRMING, DON, IS IT POSSIBLE FOR ME TO COME BACK IN AT THE END OF THE PRESENTATION? SURE.
WE HAVE FOUR OTHER ITEMS TO GO AHEAD AND GO THROUGH.
UH, TWO PRES SOLICITATION, HIGH PROFILE BRIEFINGS, AND TWO POSTS, SOLICITATION, HIGH PROFILE BRIEFINGS.
SO THOSE ARE FOR INDIVIDUAL CONSIDERATION AND WE'LL MOVE ON TO THOSE AT THIS TIME.
[9. 21-1025 Job Order Contracting Program [Roderick Sanchez, Assistant City Manager; Razi Hosseini, Director, Public Works]]
ITEM NUMBER NINE IS A JOB ORDER CONTRACTING PROGRAM.AND WHO WILL BE MAKING A PRESENTATION ON THAT? I AGREE.
LOOKS LIKE YOU'RE GONNA BE JUGGLING A LOT OF THINGS RIGHT NOW.
GOOD MORNING, CHAIRMAN AND COMMITTEE MEMBERS.
THIS ITEM WAS PRESENTED BACK IN NOVEMBER 17TH, 2020.
COMMITTEE REQUESTED TO STAFF TO ADDRESS ITEM PRIOR, PRIOR TO CITATION RELEASE.
THE REQUESTED ITEM WAS, GO I SLIDE NUMBER TWO, PLEASE.
PROPOSED CONTRACT TERM NUMBER OF THE CONTRACT BOARDS, EVALUATION CRITERIA AND WAITING CONSTRUCTION EXPERIENCE IN SAN ANTONIO REGION RESPONDENT'S PAST PERFORMANCE SLIDE NUMBER THREE, PLEASE.
WE ARE SEEKING TO ISSUE REQUEST FOR COMPETITIVE SEAL PROPOSAL R F C S P TO CONTRACT WITH QUALIFIED FIRM INTEREST IN PROVIDING JOB ORDER CONTRACTING SERVICES FOR VARIOUS PROJECT IN THE CITY OF SAN ANTONIO SERVICE INCLUDE IN THIS INCIDENTAL DEMOLITION, CONSTRUCTION, REHAB, REHABILITATION, ALTERATION AND DEFERRED MAINTENANCE AND CITY OWNED AND RELEASED BUILDING OR OTHER FACILITY OF INTEREST TO THE CITY.
SUB SOLICITATION TYPE IS RF C S P ESTIMATED VALUE NOT TO EXCEED 96 MILLION.
AND THIS PAID IT TO BE A AWARD OF CONTRACT OF EIGHT.
WHEN WE PRESENT LATE LAST YEAR, WE CHANGED THAT ONE TO EIGHT AND ALSO WE CHANGED THE YEAR DURATION.
PROPOSED TERM TWO YEARS INITIAL TERM WITH TWO ADDITIONAL ONE YEAR EXTENSION.
LAST TIME WHEN IN NOVEMBER WE PRESENT.
WE HAD THREE ONE YEARS AT REQUESTED COMMITTEE.
WE INCREASED THAT ONE TO FOUR YEARS.
THE EXISTING CONTRACT WILL BE EXPIRED MARCH 1ST, 2021, BUT WE HAVE ABILITY TO EXTEND ONE MORE YEAR.
OUTREACH BUILDING CONSTRUCTION PROJECT MANAGEMENT SERVICES.
ADVERTISEMENT IS GOING TO BE DONE ON T V S A CHANNEL 21 SSA BUILDING OPPORTUNITY WEBSITE, THE HEARTBEATS TEXAS ELECTRONIC STATE BUSINESS CX AND OF COURSE WE ARE ANTICIPATING TO OUTREACH 2000 PER WEEK.
EVALUATION AND VOTING COMMITTEE.
ROD IS FROM CITY MANAGER'S OFFICE, WILL BE ON THE EVALUATION COMMITTEE OF COURSE.
MYSELF, RODNEY DUKE, RICK WALKER FROM LIBRARY DENNIS MEYER FROM AVIATION.
AURORA PERKINSON FROM C C D O, LACEY HAMPTON FROM ALAMO COLLEGE DISTRICT.
DOUG MURPHY FROM A G C AND OF COURSE ELLEN YOKA FROM A I A AS YOU REALIZE, WE TRY TO MAKE THIS VOTING COMMITTEE VERY DIVERSE MEMBER FROM DIFFERENT DEPARTMENT.
THEY USE THE SERVICES OR THEY HAVE KNOWLEDGE REGARDING J F PROGRAM.
EXPERIENCE OF RESPONSE THEN SUBCONTRACTOR AND KEY PERSONNEL WITH JOB ORDER CONTRACTOR PROGRAM.
25 POINT PROJECT SHEET DEMONSTRATING RESPONSE.
[00:55:01]
ASK THEM TO PROVIDE US PROJECT SHEET SHOWING THEY HAVE DONE A PROJECT SIMILAR WHAT WE ARE LOOKING FOR.ROLL UP SUBCONTRACTING PERFORMANCE OF THE CONTRACT.
WE WANNA KNOW WHAT SUBCONTRACT IS GOING TO PLAY DURING THIS PROCESS.
KEY PERSONNEL ASSIGNED CONTRACT AND THEIR QUALIFICATION.
AND OF COURSE ORGANIZATION CHART UNDERSTANDING THE JOB ORDER CONTRACTING PROGRAM AND PROPOSED MANAGEMENT PLAN.
THIS WAS 30 POINT LAST TIME AT THE REQUEST OF THE COMMITTEE.
WE REMOVED FIVE POINT FROM THIS ONE, UNDERSTANDING THE CITY'S JOB PROGRAM AND SPEED PROGRAM CONSTRAINT AND TECHNICAL CHALLENGES AND PROPOSED SOLUTION.
COMPLETE J O C PROPOSAL FOR PROVIDE A SAMPLE PROJECT.
WE PROVIDE THEM A SIMILAR PROJECT.
ALL OF THEM IS COMPETING FOR SAME PROJECT AND ALSO WE ASK THEM TO GIVE US PROPOSAL HOW MUCH THEY'RE GOING TO CHARGE US DURING THAT PROJECT.
PRO PROJECT AND PROPOSE PROJECT MANAGEMENT, HOW THEY'RE GOING TO MANAGE OUR PROJECT CONSTRUCTION EXPERIENCE IN SAN ANTONIO REGION AND PEST EXPERIENCE.
THIS WAS 10 POINT, WE INCREASED THAT ONE 15 POINT AGAIN AT REQUEST OF THE COMMITTEE.
ANOTHER JOB, LOCAL CONSTRUCTION PRACTICE CONDITION AND ENVIRONMENTAL.
SIMILAR EXPERIENCE WITH THE CITY PROJECT.
SOME OF THE CONTRACTORS GOING TO GO AFTER THIS PROJECT.
THEY MAY NOT HAVE JOB EXPERIENCE AND THAT'S OKAY AS LONG THEY HAVE EXPERIENCE, SIMILAR EXPERIENCE ON THE PROJECT OR SIMILAR EXPERIENCE WITH OTHER ENTITIES.
SCHOOL DISTRICT, UNIVERSITY UTILITY AND ET CETERA.
THEY MAY NOT HAVE EXPERIENCE WITH US AS LONG.
THEY HAVE DONE ON SIMILAR PROJECT WITH SOME, SOME OTHER ENTITY.
COEFFICIENT OF THE PRICE IS 15 POINT AND OF COURSE THE S A B D PROGRAM.
20 POINTS MINORITY WOMAN OWNED BUSINESS.
10 POINT IS SMALL BUSINESSES, FIVE POINT AND EMERGING SMALL BUSINESSES AND OTHER 0.5 POINTS.
AVIDA CONTRACTING REQUIREMENT.
IN ADDITION FOR WHAT I MENTIONED PREVIOUSLY, 25, 20 4% WOMEN OWNED MINORITY SUBCONTRACTING AND 3% A A B SUBCONTRACTING LOCAL PERFORMANCE PROGRAM IS NOT APPLICABLE.
VETERAN OWNED SMALL BUSINESS PERFORMANCE IS NOT APPLICABLE OF COURSE AT THIS POINT.
DOESN'T REQUIRE ANY AUDIT EITHER.
ALSO SITTING COMMITTEE IS SUI NAL FROM E D D, OF COURSE MYSELF FROM PUBLIC WORKS DE DEPARTMENT NORBERT DUKE FROM FINANCE DEPARTMENT.
NIKKI ROMAS FROM PARKS DE DEPARTMENT AND LINDA LOPEZ.
GEORGE FROM UT HEALTH SIGN CENTER.
THIS IS A PROJECT TIMELINE, GOAL SETTING COMMITTEE.
AUDIT COMMITTEE IS PRES SANITATION.
AND OF COURSE TODAY, JANUARY 19TH, 2021.
WE ARE ANTICIPATING TO RELEASE THIS ONE ON FEBRUARY 1ST, 2021.
ATION IS A PRE-SUBMIT CONFERENCE CALLED FEBRUARY 19TH.
DUE DATE IS MARCH 26TH AND 2021.
POST SOLICITATION EVALUATION IS APRIL 26TH, 2021.
CONTRACT NEGOTIATION JUNE, 2021.
AUDIT COMMITTEE POST SOLICITATION BRIEFING.
AUGUST 17TH, 2021 AND CONSULT CONSULTATION SEPTEMBER 19 AND 2021.
AND OF COURSE CONTRACT START OCTOBER, 2021.
THIS ISN'T MY PRESENTATION AND I'M AVAILABLE TO ANSWER ANY QUESTION YOU MAY HAVE.
UH, AND I'M SURE THE COMMITTEE APPRECIATES YOUR RECONSIDERATION OF SOME OF THE RECOMMENDATIONS, THE DISCUSSION WE HAD AT THE PREVIOUS MEETING.
I I DO NOTICE THAT YOU MADE SOME CHANGES.
I THINK THEY, THEY LOOK APPROPRIATE.
I ALSO NOTICED THAT THAT ENDED UP, UH, WAS IT DUE TO THE CHANGES INCREASING THE NUMBER OF QUALIFIED, UH, FIRMS FROM SEVEN TO EIGHT? WAS IT DOING SOMETHING WITH THE POINTS THAT HELPED WITH THAT? I, I THINK THE DISCUSSION WAS SHOULD WE REALLY FIX THE NUMBER OF THE FIRM WE WERE PLANNING TO SELECT? AND WE REALLY NOT COMFORTABLE TO SAYING THAT ONE TOO EARLY WITHOUT GOING TO PROCESS BECAUSE WE DON'T REALLY KNOW HOW SCORING IS GOING TO COME UP.
WE ARE ANTICIPATING TO BE EIGHT
[01:00:01]
AT THIS TIME AT THE VALUE OF WHICH I MENTIONED 96 MILLION.ARE THERE ANY QUESTIONS FROM ANY OF THE COMMITTEE MEMBERS? YES.
YEAH, THIS IS, UH, THIS APPLIES TO, TO THIS, UH, C S P AS AS WELL AS OTHERS.
AND, UM, I, I DON'T KNOW IF THIS IS FOR ZY OR OR MAYBE FOR FOR ERIC, BUT UH, YOU KNOW, WE DID ADOPT A CLIMATE AND ACTION ACTION ADAPTATION PLAN.
UH, WE COMMITTED TO, UM, YOU KNOW, BEING MORE, UH, TO REDUCE GREENHOUSE, UH, GAS EMISSIONS.
AND, UH, I, I DON'T KNOW THAT OUR INTERNAL WORKING GROUP IS, IS UNDERWAY RIGHT NOW, BUT THESE COULD BE MISSED OPPORTUNITIES IF WE'RE NOT INTEGRATING THOSE, THOSE COMMITMENTS INTO THE CSPS.
SO FOR INSTANCE, WHAT I, WHAT I THINK MIGHT BE MISSING HERE IS, UM, REQUIREMENTS OR, YOU KNOW, ADDITIONAL POINTS FOR EXPERIENCE, UH, OR CERTIFICATION IN GREEN RETROFITS.
IS THAT, UH, SO I, I DON'T SEE THAT IN HERE.
CAN YOU TELL ME WHY THAT'S NOT THERE? UH, OF COURSE COUNCILWOMAN, WE ARE REALLY HIRING CONTRACTOR.
WHAT YOU ARE INDICATING REALLY IS A GOOD POINT, BUT MOST OF THE TIME WE HAVE TO ADDRESS THOSE DURING THE DESIGN NATURALLY IN THE, DURING THE CONSTRUCTION.
AND WE ARE VERY SENSITIVE TO USE AS MUCH AS POSSIBLE RECYCLED MATERIAL WHEN WE ARE, FIRST OF ALL DEMOING THE BUILDING, WE TRY SALVAGE AS MUCH AS POSSIBLE AND THEN WE END UP USING RECYCLED MATERIAL.
OF COURSE WE USE L I D L E D DURING THE DESIGN AND CONSTRUCTION AND, AND WE DO AS MUCH AS POSSIBLE.
BUT THIS IS REALLY, AGAIN, MORE FOR CONSTRUCTION THAN REALLY DESIGN SERVICES.
SO I I THINK IT'S, IT'S GREAT THAT YOU DO ALL THOSE THINGS.
UH, BUT WHAT YOU'RE TELLING ME IS THAT IT DOESN'T MATTER.
WHAT I'M HEARING IS THAT IT DOESN'T MATTER IF THE CONSULTANT YOU HIRE IN THIS PROCESS HAS KNOWLEDGE OR EXPERIENCE ABOUT THAT.
BUT COUNCILWOMAN, WHAT I'M REALLY SAYING, WE ARE NOT HIRING CONSULTING, WE'RE HIRING CONTRACTOR BASICALLY IS RESPONSIBLE TO BUILD WHAT THE DESIGNER HAS DONE.
WE PUT A LOT EFFORT MAKING SURE OUR DESIGN IS DONE MEETING THOSE REQUIREMENTS BECAUSE DURING CONSTRUCTION A LITTLE LATE TO MEET THOSE REQUIREMENT 'CAUSE THEY'RE GOING TO BUILD WHAT IS THE DESIGN IS DOWN FOR.
SO IT DOESN'T MATTER IF THE CONTRACTOR HAS EXPERIENCE DOING THAT.
WE ARE JUST, WE DON'T HAVE ANY POINT AT THIS, AT THIS TIME.
WELL, I, UM, I WOULD, I WOULD LIKE TO SEE SOME CONSIDERATION FOR THAT IN THE C S P THAT'S PUT OUT AND I, I WOULD MOVE TO APPROVE WITH THAT AMENDMENT.
LET ME ASK FOR SOME CLARIFICATION THEN.
UH, ARE YOU ASKING THAT SOME, A RESCHEDULING OF POINTS TO PROVIDE POINTS FOR SOMEONE WITH EXPERIENCE IN THE AREA OF, I'LL, I'LL JUST CALL IT GREEN BUILDING, IS THAT WHAT YOU'RE ASKING? YES, SIR.
UH, SO THAT WOULD BE AN AMENDMENT TO THE STRUCTURE THAT YOU'RE PROPOSING.
ARE THERE ANY OTHER COMMENTS OR, UH, CONCERNS FROM ANY OTHER MEMBER? UH, COUNCILMAN PERRY? SIR, CAN I, THIS IS SANDY.
CAN I JUST ADD IN ONE PIECE ON THIS? UM, AND I'LL EVEN ASK RAZZIE MAYBE TO CLARIFY A LITTLE BIT.
SO ONE OF THE THINGS WE COULD DO, COUNCILWOMAN, IS GIVEN THAT THESE ARE, AS I UNDERSTAND IT, UM, CONSTRUCTION PROJECTS THAT SOMEBODY ELSE WOULD'VE DESIGNED, I THINK IS WHAT RAZZI WAS SAYING.
UH, BUT WE COULD CERTAINLY ADD IN SOMETHING FOR YOUR CONSIDERATION AS AN OPTION UNDER PROPOSED PLAN, UH, WHICH I'M LOOKING FOR THAT SLIDE.
I APOLOGIZE, I THINK I'M ON THE WRONG PRESENTATION HERE.
BUT ON PROPOSED PLAN, WE COULD ADD IN SOME QUESTIONS AROUND THEIR EXPERIENCE, UM, EXECUTING CONTRACTS THAT HAVE THOSE KIND OF DESIGN ELEMENTS IN THERE.
SO WE COULD TAKE THAT INTO CONSIDERATION AS, UH, THE COMMITTEE MOVES FORWARD.
SO IT WOULDN'T BE A SET NUMBER OF POINTS, BUT WE COULD CERTAINLY LOOK AT IT AS PART OF PROPOSED PLAN AND SAY, DOES THIS CONTRACTOR HAVE EXPERIENCE EXECUTING THOSE TYPES OF PROJECTS? SO I JUST WANTED TO MENTION THAT FOR YOUR CONSIDERATION AS WELL.
UH, I, I THINK THAT SOUNDS LIKE A, UH, OKAY.
I'LL, I'LL TAKE THAT INTO ACCOUNT AND I'LL, I'LL HEAR WHAT THE COUNCILMAN HAS TO SAY AS WELL.
[01:05:01]
RAZZY, I, I, THIS IS A CONSTRUCTION PROJECT, CORRECT? IT'S NOT A DESIGN, DESIGN, UM, DESIGN CONTRACT.AND WHATEVER YOU PUT ON, ON THE DRAWINGS AND IN THE CONTRACT AND IN THE SPECIFICATIONS THE CONTRACTOR EXECUTES WHETHER THERE'S ENVIRONMENTAL CONCERNS OR NOT ENVIRONMENTAL CONCERNS, OR WHATEVER THE CONTRACT IS SPECIFYING.
SO I, I'M, I'M, I WOULD BE CONCERNED ON PUTTING REQUIREMENTS ON A CONTRACTOR THAT'S JUST EXECUTING WHAT'S EVER IN THE DESIGN.
NOW, EVEN, EVEN QUESTIONS RELATING, DO THEY HAVE EXPERIENCE? WELL, THE CONTRACTORS ARE GONNA EXECUTE AGAIN, WHAT'S ON THE DESIGN, WHETHER, UH, THAT IS IN THE DESIGN DOCUMENTS OR NOT.
THAT'S WHAT THE REAL QUESTION IS.
I, I DON'T, I DON'T SEE THE, I GUESS I REALLY DON'T SEE THE RELEVANCE IN THIS PART OF A CONTRACT.
AND I'M LOOKING AT THE DESIGN CONTRACT VERSUS THE CONSTRUCTION CONTRACT.
PUTTING THOSE, THOSE REQUIREMENTS ON A CONSTRUCTOR, JUST
I, IS THAT CORRECT? ZY? YES, SIR.
SO I, I, I, I WOULDN'T WANT TO PUT ANY ADDITIONAL REQUIREMENTS ON A CONSTRUCTOR, UH, AT THIS POINT, AT THIS POINT OF THE PROCESS.
ANY ENVIRONMENTAL CONCERNS SHOULD BE TAKEN CARE OF IN THE FIRST PART OF THE PROCESS.
THE ACTUAL DESIGN PORTION, NOT IN THE CONSTRUCTION PORTION.
SO, UH, THAT, THAT'S MY VIEWPOINT ON THIS AND JUST, UH, YOU KNOW, WE CAN TAKE A LOOK AT THE FRONT PART, BUT NOT, NOT REALLY THE BACK PART ON THIS PARTICULAR ISSUE.
I, I WANNA ADD, UH, ON TOP OF WHAT BEN HAD SAID, AND THAT IS, WE DO GIVE POINTS FOR EXPERIENCE.
NOW, COULDN'T SOME OF THE QUESTIONS RELATED TO EXPERIENCE BE RELATED TO THE EXPERIENCE THEY MAY HAVE HAD IN SOME KIND OF GREEN BUILDING OR ENVIRONMENTAL BUILDING AND THINGS LIKE THAT TO WHERE THEY GET THE MAXIMUM POINTS? BECAUSE MAYBE THEY HAVE MORE EXPERIENCE IN THAT AREA WHERE SOMEONE ELSE MAY NOT GET THE MAXIMUM FROM EXPERIENCE BECAUSE THEY DON'T HAVE THAT.
SO I THINK BUILDING THOSE QUESTIONS INTO, UH, DETERMINING THE EXPERIENCE, UH, IS JUST SAYING WE WANT TO ADD SOME OF THAT EXPERIENCE INTO THE MIX.
SO, YOU KNOW, THAT'S THE WAY I LOOK AT THAT PART.
BUT, UH, COUNCIL, I'M GONNA GO BACK TO YOU.
I KNOW YOU WANTED TO SAY MORE.
OH, I, UM, SO I, I UNDERSTAND THE, THE ONE TWO PROCESS AND THAT MAKES A LOT OF SENSE.
UM, I SUPPORT BEN'S SUGGESTION TO INTEGRATE THOSE QUESTIONS IN, UH, TO THE EXPERIENCE.
JUST AS YOU'RE SAYING, UH, CHAIRMAN, I ALSO, UH, WOULD LIKE A REMINDER ABOUT WHEN THE, UM, SORRY, THE, THE STATUS OF THE DESIGN PORTION OF THIS THAT WOULD BE ASSOCIATED WITH THESE CONSTRUCTION CONTRACTS.
WHAT IS, WHAT IS THAT STATUS ACTUALLY, AND BEFORE YOU GET INTO THAT, SORRY, LET ME, UH, MAKE ANOTHER COMMENT REALLY QUICKLY.
UM, THE CREDIT HUMAN BUILDING, UH, THAT WAS, UM, THAT WE KNOW IS, YOU KNOW, ULTRA, ULTRA LEAD.
IT'S GOT ITS OWN PHOTOVOLTAICS AND GEOTHERMAL AND ALL, AND ALL THAT STUFF.
UM, IF YOU HAVE A CONVERSATION WITH THE FOLKS WHO WORKED ON THAT, THEY WERE NOT ABLE TO FIND PEOPLE WHO, WHO WERE, WHO WERE ABLE TO BUILD, UH, TO THOSE DESIGNS.
THEY HAD TO TRAIN THE CONTRACTORS THAT WERE HIRED, UM, TO, TO DO SOME OF THESE INNOVATIVE DESIGNS.
SO I, I DO JUST WANT US TO BE AWARE THAT THAT'S NOT, UM, JUST BECAUSE IT'S DESIGNED DOESN'T MEAN EVERY CONTRACTOR CAN DO IT.
OBVIOUSLY THE CREDIT HUMAN SITUATION WAS, WAS CERTAINLY, UH, UNIQUE.
UH, SO, SO LET'S JUST KEEP THAT IN MIND.
UH, SO NUM, SO GOING BACK TO MY, MY OTHER QUESTION, CAN YOU TELL ME THE, THE STATUS OF, OF THE DESIGN PORTION OF THIS PROCESS, IS THERE ALREADY A CONTRACTOR IN PLACE FOR THAT? IS THERE AN R F P OUT RIGHT NOW FOR THAT CONCEPT OF, YOU KNOW, THIS, UH, CONTRACT IS GOING TO BE AVAILABLE FOR US IN OCTOBER OF THIS YEAR.
UNTIL THAT TIME, WE ARE GOING TO USE THE EXISTING JOCK CONTRACTOR TO DO THE WORK.
THIS WILL BE FOR FUTURE PROJECT.
WE DO NOT HAVE ANY PROJECT UNDER DESIGN TO BUILD BY THESE CONTRACTOR.
UM, BUT WHO WOULD BE THE DESIGNERS HAVE YOU SELECTED FOR THOSE FUTURE PROJECTS? DO YOU KNOW WHO THOSE DESIGNERS ARE? IS THERE NOT YET.
[01:10:01]
YET, BECAUSE WE DON'T HAVE THEIR PROJECT YET.AND IS THERE, HAVE YOU DONE A C S P FOR THOSE DESIGNERS OR WILL THERE BE A FUTURE, UH, R F P FOR THOSE DESIGNERS? FOR SOME OF THEM, FOR THOSE PROJECTS, WHOEVER WILL DESIGN THEM, SOME OF THEM COUNCILWOMAN, WE HAVE EXISTING ONCALL, SOME MAY BE, WILL BE COMING LATE ON SOME OR SO FOR FUTURE R F P.
SO IT WOULD BE FOR FUTURE RFPS, NOT CFPS? CORRECT.
THE DESIGN IS R F P REQUEST FOR QUALIFICATION.
AND AT WHICH BEGS ANOTHER QUESTION FOR ME IS SOMETIMES YOU DO DESIGN BUILD AND SOMETIMES YOU DO DESIGN SEPARATELY FROM, FROM THIS.
SO, UM, CAN YOU JUST TELL ME A LITTLE BIT ABOUT THAT DISTINCTION? WHY, WHY THESE WOULD BE SEPARATE, SEPARATE PROCESSES AS OPPOSED TO DESIGN BUILD? MOST OF THIS PROJECT IS DONE BY JOCK.
THERE ARE FEW HUNDRED THOUSAND EACH.
THEY MAY HAVE MANY OF THEM, BUT EACH OF THEM IS VERY SMALL.
PROJECT DESIGN BUILD FOR A SMALL PROJECT IS NOT JUST WORTH IT.
WE DO VERY COMPLICATED PROJECT LIKE, UM, FOREST SUBSTATION AND BROADWAY CONSTRUCTION, LARGE PROJECT, 10 MILLION AND LARGER COMPLICATED PROJECT.
WE DO DESIGN BUILD, FOR EXAMPLE, WE DID A CITY CHAMBER DOWN ON THEIR RENOVATION.
THAT WAS DONE THROUGH ONE OF OUR JOB.
THE DURATION OF THE PROJECT WAS TWO, THREE MONTHS.
A SMALL PROJECT WE USUALLY DO THROUGH JUDGE JO.
SO I DON'T KNOW IF, UH, SO WE NEED AN ACTION, UH, TO APPROVE THIS, TO MOVE FORWARD, BUT, UM, DO WE NEED ANY SORT OF AMENDMENT OR IS STAFF COMMITTING TO INTEGRATING THOSE QUESTIONS AT THIS POINT? UH, COUNCILMAN, WE DON'T, UM, NEED A FORMAL VOTE ON THIS.
'CAUSE THIS IS JUST A PRES SOLICITATION, SO WE WANT YOUR FEEDBACK ON IT.
UM, BUT AS LONG AS THE CONSENSUS OF THE, IT SOUNDS LIKE THE, THE, THE CHAIR AND, AND YOU AND AND OTHERS ARE, ARE COMFORTABLE WITH US JUST ADDING A FEW QUESTIONS INTO EITHER PROPOSED PLAN OR EXPERIENCE, WE WOULDN'T CHANGE POINTS.
WE'RE JUST GONNA ADD QUESTIONS AND ASK ABOUT THEIR EXPERIENCE WITH THOSE TYPES OF PROJECTS.
IS THAT KIND OF WHAT I'M HEARING, CHAIR? SURE.
AND COULD YOU SEND THOSE, UH, ADDED QUESTIONS TO US JUST FOR REASSURANCE SO WE KNOW WHAT YOU'VE INCORPORATED IN THERE? WE COULD CERTAINLY DO THAT.
THEN I WOULD, I WOULD, UH, ENTERTAIN A MOTION TO MOVE FORWARD WITH THIS PRES SOLICITATION BASED ON THE DISCUSSION WE'VE HAD.
CHAIR, THERE'S NO, YOU DON'T, YOU DON'T NEED A MOTION ON THIS ONE.
SO WE'LL, UM, WE'LL PROVIDE THE COMMITTEE SOME ADDITIONAL, UH, INFORMATION ON THE QUESTIONS THAT WE'LL ADD IN.
UH, AND THEN WE'LL BE MOVING FORWARD WITH RELEASING THIS BASED ON THE COMMITTEE'S FEEDBACK TODAY.
I THINK THAT CONCLUDES THE DISCUSSION ON, ON THIS.
[10. 21-1018 Temporary Staffing Services [Ben Gorzell, Chief Financial Officer; Lori Steward, Director, Human Resources]]
NOW WE'LL MOVE ON TO ITEM NUMBER 10, TEMPORARY STAFFING SERVICES.I'M LORI STEWART, HR DIRECTOR, I'LL BE HANDLING THIS ITEM.
SO AS SOON AS THE SLIDES ARE PULLED UP, I'LL START WITH A, UM, A LITTLE BIT OF, UH, BACKGROUND IN THE NEXT SLIDE ON, ON WHERE WE ARE.
UM, THIS MAY SOUND FAMILIAR FOR THOSE OF YOU WHO ARE ON THE COMMITTEE A YEAR AGO, BECAUSE WE DID HAVE, UM, A PRESENTATION ABOUT A YEAR AGO TO MOVE THIS ITEM FORWARD.
HOWEVER, AT THE TIME, THERE WAS SOME CONCERN THAT WAS BEING EXPRESSED BY THE MEMBERS OF THE COMMITTEE ABOUT THE NUMBER OF TEMPORARY AGENCY, UH, EMPLOYEES THAT WERE, UH, BEING EMPLOYED, THE COST OF THE CONTRACT AND THOSE KINDS OF THINGS.
WE ALSO HAD, UM, ISSUES WITH THE, UM, FEDERAL LIMITATIONS ON GRANT FUNDING BEING ALLOWED TO, UM, USE THE LOCAL PREFERENCE POINTS.
AND SO WE HAD BROUGHT BACK THE ITEM, UH, AGAIN IN MARCH TO TALK ABOUT THAT.
BUT THEN OF COURSE ABOUT THEN IS WHEN, UM, YOU KNOW, THE IMPACTS OF COVID WERE HITTING.
SO WE DIDN'T MOVE FORWARD WITH THE, THE SOLICITATION AT THAT TIME, BUT WHAT WE DID MOVE FORWARD WITH IS WORKING WITH CITY DEPARTMENTS TO ASSESS THE USE OF TEMPORARY AGENCY STAFFING.
AT THE TIME WHEN WE MET ABOUT A YEAR AGO, WE HAD 450 TEMPORARY AGENCY EMPLOYEES THAT WERE ACTIVELY WORKING.
AND SO WE WORKED WITH DEPARTMENTS TO FIND OUT WHAT THE NEEDS WERE.
AND IF YOU'LL RECALL IN THIS BUDGET GOING INTO 2021, THERE WERE ACTUALLY 65 NEW POSITIONS ESTABLISHED IN THE BUDGET, UM, WITH THE INTENT ON GETTING THAT NUMBER DOWN, THOSE AREAS
[01:15:01]
WHERE DAY-TO-DAY OPERATIONS WERE BEING PERFORMED USING TEMPORARY AGENCY SERVICES.SO WITH THE 65 NEW POSITIONS AND COUNCIL AT THAT POINT ALSO APPROVED A ONE YEAR EXTENSION SO WE COULD CONTINUE OUR WORK.
UM, SINCE THEN, WE HAVE PUT SOME RESTRICTIONS ON THE USE OF TEMPORARY AGENCY SERVICES SO THAT IN THE PAST DEPARTMENTS COULD UTILIZE THE SERVICES JUST BY CALLING THE CONTRACTED AGENCIES AND REQUESTING THE ASSISTANCE.
BUT NOW WE HAVE PUT NEW, NEW RULES IN PLACE SO THAT HUMAN RESOURCES, OUR BUDGET OFFICE, AND EVEN THE CITY MANAGER'S OFFICE, ARE REVIEWING THE REQUESTS FOR THE USE OF TEMPORARY AGENCY SERVICES JUST LIKE WE DO FOR THE REGULAR FILLING OF CITY POSITIONS.
SO IN THAT WAY, WE WERE ABLE TO REVIEW AND MAKE RECOMMENDATIONS FOR THE BEST WAY TO FILL TO, UH, TO GET THE STAFFING THAT DEPARTMENTS ARE NEEDING, WHETHER THAT BE A CITY TEMP OR EXPEDITING THE FILLING OF A REGULAR VACANT POSITION, OR IN SOME CASES, UM, THE AGENCY TEMPS.
SO AT THIS POINT, WE BELIEVE WE'RE AT THE POINT WHERE WE'RE READY TO MOVE FORWARD WITH THE SOLICITATION, WITH THESE NEW CHANGES IN PLACE.
AND ONE THING I WANTED TO NOTE.
NOW, OF COURSE WE HAVE, WE HAVE WORKED WITH DEPARTMENTS TO REALLY, UH, RESTRICT WHAT TEMPORARY AGENCY SERVICES ARE USED FOR, BUT THERE WILL ALWAYS BE A NEED FOR THESE TEMPORARY AGENCIES BECAUSE THE BENEFIT THAT YOU HAVE IS THAT THE EMPLOYEES ARE ALREADY, UM, ONBOARD.
THEY'VE BEEN SCREENED, THEY'VE BEEN BACKGROUND CHECKED, THEY'VE HAD THEIR DRUG TEST, THEY'RE READY TO GO.
YOU CAN CALL AND HAVE AN EMPLOYEE THE NEXT DAY.
AND SOMETIMES YOU NEED THAT FOR A VACANCY THAT OCCURS OR SOME OF THE, UH, SPECIAL NEEDS THAT COME UP.
LIKE WE'VE SEEN THROUGHOUT THE COVID RESPONSE AND RECOVERY EFFORTS, WE'VE HAD TO GET PEOPLE ON BOARD VERY QUICKLY TO HELP WITH THE, UM, EMERGENCY HOUSING ASSISTANCE OR HELPING WITH THE HEALTH DEPARTMENT WITH THE CONTACT TRACING WITH THESE, UH, IMMUNIZATION CLINICS THAT ARE BEING SET UP.
SO THERE ALL, THERE WILL ALWAYS BE A NEED FOR THESE SERVICES, BUT WE HAVE, UM, THE PROCEDURES IN PLACE NOW TO MONITOR THAT AND MAKE SURE WE'RE USING IT IN THE RIGHT WAY.
SO YOU'LL SEE A YEAR AGO WHEN WE CAME TO YOU, WE ESTIMATED THE COST OF THE CONTRACT AT $48 MILLION FOR THE FIVE YEARS.
AND NOW THAT WE'RE IN FRONT OF YOU A YEAR LATER, WE ESTIMATE OF 20 MILLION FOR THAT SAME TIMEFRAME.
SO WE'VE REALLY REDUCED THE USAGE AT THIS POINT.
WE HAD 450 TEMPS A YEAR AGO WHEN WE CAME TO YOU.
RIGHT NOW WE HAVE 192, HOWEVER, 73% OF THAT NUMBER RIGHT NOW ARE IN HUMAN SERVICES, HOUSING AND HEALTH.
AND A LOT OF THAT IS FOR THE COVID RECOVERY AND RESILIENCY EFFORTS.
SO WE ARE PROPOSING TO ISSUE OUR REQUEST FOR PROPOSALS.
WE WILL HAVE A THREE YEAR TERM WITH TWO ONE YEAR RENEWAL OPTIONS.
THE VALUE FOR THE THE ENTIRE FIVE YEAR PERIOD IS 20 MILLION.
AND THE CURRENT CONTRACT THAT YOU'VE EXTENDED FOR A YEAR FOR US DOES EXPIRE IN DECEMBER OF THIS YEAR, 2021.
SO WE WILL DO OUR, UM, OUTREACH EFFORTS ON THIS.
WE HAVE A CENTRAL VENDOR REGISTRY OF, UM, 53 VENDORS TO SEND THAT OUT TO.
UM, ANOTHER NINE TARGETED OUTREACH THAT WE WILL PLAN.
THE NORMAL ADVERTISING EFFORTS WILL BE DONE.
OUR EVALUATION COMMITTEE WILL BE, UM, OUR E L T MEMBER BEN GELLE.
AND THEN WE WILL HAVE, UM, MEMBERS OF HUMAN RESOURCES THAT DEAL WITH THIS CONTRACT AND OUR RECRUITMENT AREA.
AND WE WILL ALSO INVOLVE A COUPLE OF OUR LARGE USERS DEPARTMENTS, INCLUDING SOLID WASTE AND, UM, THE POLICE DEPARTMENT.
WE'LL HAVE, UH, REPRESENTATIVES THERE TO HELP US WITH THE ASSESSMENT.
SO THE EVALUATION CRITERIA, THIS WILL BE A REQUEST FOR PROPOSALS.
SO WE WILL, WE WILL LOOK AT THEIR EXPERIENCE AND THEIR BACKGROUND AND QUALIFICATIONS.
AND THEN WE WILL LOOK AT THEIR PROPOSED PLAN, AND THAT WILL BE 40 POINTS AND PRICING WILL BE 20.
WE WILL ALSO PROVIDE THE BETA POINTS.
IF THEY'RE A PRIME CONTRACTOR, THAT'S EITHER AN S B E OR A N W B E.
THERE IS A VEDA CON SUBCONTRACTING REQUIREMENT THAT WILL BE 10%.
AND AS WE MENTIONED EARLIER, THE LOCAL PREFERENCE PROGRAM AND ALSO VETERAN POINTS WILL NOT BE APPLIED DUE TO SOME LIMITATIONS THAT COULD HAPPEN WITH GRANT FUNDING.
AND THERE ARE A NUMBER OF GRANTS FUNDED PROGRAMS THAT DO USE THESE CONTRACTS.
UM, WILL NOT REQUIRE THE AUDITED FINANCIAL STATEMENTS.
THE GOAL SETTING COMMITTEE WAS NIKKI RAMOS, MYSELF AS THE DIRECTOR, TROY ELLIOTT AND FINANCE, UM, CHICHI, NEGAL AND E D D AND CITIZEN MEMBER LINDA LOPEZ, GEORGE.
[01:20:01]
NEXT SLIDE.OUR TIMELINE WILL BE, UM, PRESENTING TO YOU TO GET YOUR INPUT TODAY AND RELEASING THE R F P ON FEBRUARY 10TH.
THE PRE-SUBMIT SUBMITTAL CONFERENCE WILL BE FEBRUARY THE 19TH.
QUESTIONS DUE FEBRUARY 26TH WITH A DUE DATE FOR THE RFPS RESPONSES MARCH 29TH.
THEN DURING THE MONTH OF MAY, WE WILL WORK ON OUR EVALUATIONS AND FINALIZING A CONTRACT OR MULTIPLE CONTRACTS, DEPENDING ON HOW MANY VENDORS ARE RECOMMENDED IN JUNE.
AND BACK TO THE AUDIT COMMITTEE FOR A POST SOLICITATION BRIEFING IN AUGUST.
FULL COUNCIL CONSIDERATION SOMETIME IN SEPTEMBER IN PLENTY OF TIME TO BE UP AND RUNNING WHEN THESE CONTRACTS END IN, UH, DECEMBER OF THIS YEAR.
AND THAT CONCLUDES MY PRESENTATION.
I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
UH, LORI, I I HAVE A COUPLE OF QUESTIONS AND I THINK IT'S BEEN SOMETHING THAT WAS MENTIONED IN THIS COMMITTEE BEFORE AT THE TIME IT WAS, UH, FROM A PREVIOUS MEMBER.
AND THAT WAS, UH, HAVE WE DONE ANYTHING TO EVALUATE THE, UM, THE WAY THESE, UH, THESE COMPANIES PAY THEIR, UH, EMPLOYEES AND THE PERCENTAGE THAT THEY ADD ON TO THAT PAY THAT THE CITY HAS TO PAY, AND IF BENEFITS ARE OFFERED TO THEIR EMPLOYEES THAT ARE WORKING PART-TIME, UH, AND, AND HOW IS ANY OF THAT OR ALL OF THAT CONSIDERED AS WE EVALUATE THESE, THESE FIRMS? THANK YOU.
OUR PLAN IS TO REQUEST ALL OF THAT INFORMATION IN THE R F P AND IT WILL BE EVALUATED AS PART OF THE, THE PROPOSED PLAN OF, OF COURSE, THE MARKUP IS GOING TO BE PART OF THE PRICING THAT THAT WILL BE FACTORED INTO THE PRICING.
BUT WE WILL ASK ABOUT THEIR, UH, SALARY STRUCTURE.
WE WILL ASK ABOUT ANY BENEFITS THAT EMPLOYEES ARE ELIGIBLE FOR, AND WE WILL BE CONSIDERING THAT AND PROVIDING POINTS IN THE PROPOSED PLAN PART OF THAT R F P.
SO WE DO, UM, INTEND TO FACTOR THAT IN.
LORI, YOU'VE BEEN LOOKING AT THIS FOR YEARS.
WHAT IS THE AVERAGE FACTOR THAT'S PUT IN BY THE COMPANIES OVER AND ABOVE THE SALARY THAT'S PAID? OR DO WE KNOW THAT AVERAGE? UM, I'M NOT SURE I UNDERSTAND THE QUESTION, COUNCILMAN.
AND IN TERMS OF BENEFITS, SO FOR EXAMPLE, IF WE, IF WE HIRE A TEMP AND THAT TEMPS GETTING PAID, UH, $40,000 A YEAR FROM, UH, THE COMPANY, BUT THE COMPANY CHARGES US 55 OR 60,000, I DON'T KNOW WHAT IS THE MARKUP AVERAGE THAT THEY MARK UP OVER WHAT THEY PAY, UH, THE EMPLOYEE, UM, THE MARKUP AVERAGES IN THE, UM, BETWEEN 34 AND MAYBE 38 OR SO.
BUT THAT INCLUDES ALL OF THE PAYROLL TAXES.
THAT INCLUDES ALL OF THEIR EXPENSES IN RUNNING THE BACKGROUND CHECKS AND DOING THE DRUG TESTING AND DOING THEIR RECRUITMENT.
UM, SO A LOT OF THE SAME EXPENSES THAT WE ALSO HAVE AS THE EMPLOYER, UH, TO DO RECRUITMENT, TO DO, UH, YOU KNOW, ALL OF THOSE BACKGROUND CHECKS, PAYROLL TAXES, ANY OF THE BENEFITS THEY PROVIDE.
SO, YOU KNOW, OUR, OUR BENEFIT RATE IS CLOSE TO 20% HERE, PLUS HEALTH INSURANCE ON TOP OF THAT, RIGHT? WHEN WE PUT A POSITION OUT THERE THAT, LET'S SAY IT PAYS $60,000 A YEAR, DO WE TELL THE COMPANY WE WANNA PAY THAT EMPLOYEE $60,000 A YEAR? OR DO WE SAY WE ONLY WANT THEM TO GET 35 OR 40? 'CAUSE WE MARK IT DOWN 'CAUSE IT'S A PART-TIME EMPLOYEE TO US.
THERE ARE NORMALLY PAY SCALES THAT ARE, UM, INVOLVED AS PART OF THE CONTRACT.
YOU KNOW, WE'RE LOOKING FOR GENERAL ADMINISTRATIVE WORK OR ACCOUNTING WORK.
AND THERE, THERE ARE PAY SCALES INVOLVED, BUT THERE COULD BE DISCUSSIONS BETWEEN THE CITY AND, AND THE AGENCY AS FAR AS THE LEVEL OF WORK THAT WE'RE LOOKING AT AND WHAT PAY LEVEL IS NECESSARY TO GET A GOOD WORKER.
BUT I WOULD EMPHASIZE AGAIN, THAT WE REALLY FEEL LIKE WE HAVE TURNED OUR FOCUS HERE TO SHORT TERM ASSIGNMENTS, UM, WHERE YOU'RE, YOU KNOW, YOU'RE NOT LOOKING AT SUPPLEMENTAL WORKFORCE LIKE WAS HAPPENING, YOU KNOW, A YEAR AGO THAT WE'VE CREATED THOSE ADDITIONAL POSITIONS THAT THIS IS TRULY FILLING IN FOR A VACANCY WHILE WE'RE RECRUITING OR DOING SOME OF THESE IMMEDIATE, URGENT PROJECTS, LIKE SOME OF THE HOUSING ASSISTANCE THAT WAS HAPPENING WITH COVID.
UM, THEY'RE NOT INTENDED TO BE LONG, LONG-TERM PROJECTS WHERE WE'RE, UM, WHERE THAT IS GOING TO BECOME IS, IS AS BIG OF A CONCERN AS IT'S BEEN IN THE PAST.
I ASSUME WHATEVER JOB THAT THE CITY, UH, PUTS OUT FOR, UH, IT AT LEAST MEETS
[01:25:01]
OUR MINIMUM WAGE $15 AN HOUR.IS THAT CORRECT? PAID TO THE EMPLOYEE? UM, IT DEPENDS ON THE JOB.
IT MAY NOT BECAUSE IN SOME, SOME TEMPORARY ASSIGNMENTS NOW, SOME OF OUR RECREATIONS SUMMER EMPLOYEES THAT ARE, UM, TEND TO BE YOUNGER PEOPLE.
IT IS NOT NECESSARILY 15 FOR ALL OF THE TEMPS.
BUT, UM, WELL, I, I HAVE A CONCERN ABOUT THAT.
UH, SO, YOU KNOW, MAYBE THAT'S SOMETHING ELSE WE NEED TO UNDERSTAND MORE ABOUT.
UH, I DON'T THINK ANYBODY SHOULD GET LESS THAN $15 AN HOUR.
I MEAN, THAT'S WHAT THE CITY HAS SAID IS ITS MINIMUM.
WHY SHOULD WE HIRE ANYBODY EVEN AS A TEMP FOR ANYTHING LESS THAN THAT? OKAY.
WELL, SOME, SOME OF THE JOBS ARE JUST, UH, WITH YOUTH WORKERS.
SOME OF OUR STUDENTS, SOME ARE YOUTH EMPLOYMENT.
WE DON'T USE THE $15 FOR THOSE.
WELL, THAT MAY BE A DISCUSSION THAT NEEDS TO COME TO COUNSEL.
I DON'T KNOW IF ANYONE ELSE HAS ANY THOUGHTS ABOUT THAT, BUT I UNDERSTAND, YOU KNOW, WHAT YOU'RE SAYING SO FAR ABOUT THIS PROPOSAL.
ANY OTHER QUESTIONS OR CONCERNS FROM ANY OTHER COMMITTEE MEMBER? COUNCILMAN SANDOVAL? THANK YOU, UH, CHAIR.
THANK YOU, LORI, FOR THE PRESENTATION AND, AND ALL THE WORK ON THIS.
I KNOW WE'RE CHANGING MODES IN TERMS OF HOW THE CITY REALLY CONDUCTS WORKFORCE BUSINESSES.
UH, AND I'M SURE IT WASN'T, UH, IT WASN'T EASY.
SO THANK YOU FOR, FOR LEADING THE EFFORT ON THAT.
UH, I'M, I'M ALSO GLAD TO SEE A LOT OF THOSE JOBS BECOME PERMANENT.
I THINK THAT'S, UM, THAT SECURITY IS, IS, IS SO IMPORTANT FOR, FOR WORKERS, UH, ESPECIALLY RIGHT NOW.
SO, UM, THANK YOU FOR, FOR LEADING THE CHARGE ON THAT.
UH, I HAD SOME OF THE SIMILAR QUE SOME, SOME SIMILAR QUESTIONS TO THE CHAIR.
I'M GLAD TO HEAR THOSE QUESTIONS WILL BE PART OF THE EVALUATION PROCESS.
I WOULD LIKE TO REQUEST THAT, UH, STAFF SHARE WITH US A COPY OF THOSE QUESTIONS THAT, THAT WILL BE ASKED.
I, I WOULD LIKE TO REVIEW THEM AS WELL.
UM, YOU KNOW, IT WASN'T IN THE PRESENTATION, UH, SO I, I'D JUST LIKE TO BE ABLE TO LOOK AT THEM MORE IN DETAIL.
UH, I, I SHARE SIMILAR CONCERN ABOUT THE, UM, THE HOURLY WAGE.
UH, YOU KNOW, WHEN, WHEN SOMEONE DOESN'T HAVE A PERMANENT JOB, UM, SO FOR INSTANCE, I USED TO DO, UM, I WAS A GIG WORKER FOR, FOR A WHILE.
AND SO EVERYTHING, I GOT PAID HOURLY FOR MY, YOU KNOW, FOUR HOUR GIG HERE OR TWO HOUR GIG THERE.
UM, I HAD TO SET SOME OF THAT ASIDE, RIGHT? FOR, FOR WHEN I WASN'T GONNA HAVE A JOB
UH, SO I THINK, UM, EVEN GIVING SOMEONE $15 AN HOUR, THEY DON'T HAVE A LOT OF BENEFITS WITH THAT.
SO, UH, WHAT I'M, WHAT I'M GETTING AT IS
AND I THINK YOU MAY HAVE A POINT WITH THE YOUTH WORKERS, UM, BUT I, I THINK WE'D JUST LIKE TO BE FAMILIAR WITH THAT FOR, FOR THE REST OF THE, OF THE WORKERS OR, OR THE POSITIONS THAT YOU MIGHT HIRE FOR.
UM, ANOTHER QUESTION I HAD WAS, YOU, YOU MENTIONED THAT RIGHT NOW HUMAN HEALTH AND HOUSING HAD MOST OF THE TEMPORARY WORKERS, BUT YOU'RE INVITING THE DEPARTMENTS OF SOLID WASTE AND PD TO, UH, UH, TO BE PART OF THE EVALUATION TEAM.
UH, IT, IT DIDN'T MAKE SENSE TO ME.
I THOUGHT MAYBE YOU MIGHT, I GUESS WHY HAVE MOST OF THE WORKERS RIGHT NOW? YEAH, I THINK RIGHT NOW WE'RE SEEING, UM, THE COVID RELIEF AND, AND, AND RECOVERY PLANS ARE, ARE, ARE TAKING A LOT OF EFFORT THERE.
BUT OVER THE COURSE OF THE FIVE YEAR CONTRACT, THOSE ARE TWO LARGE USERS OF THE SERVICES.
THEY'RE VERY BIG DEPARTMENTS AND HAVE ONGOING NEEDS THAT COME UP.
AND HIS LOOKING AT IT AND LOOKING AT IT HISTORICALLY, THOSE ARE MAJOR USERS.
SO, UH, AT, WHEN YOU PROVIDE US THAT, UH, THE, THE HOURLY RATE BREAKDOWN, I THINK IT'S HELPFUL TO SEE IT LINED UP WITH WHAT, WHAT ARE THOSE TYPES OF JOBS THAT, THAT POSITIONS THAT NEED SO MANY TEMPS, JUST SO WE'RE ALSO FAMILIAR WITH WHAT THAT, THAT NEED IS BEFORE GOING INTO APPROVING THIS CONTRACT.
AND THEN, UH, MY LAST QUESTION IS, UH, MINOR DETAIL.
WHAT HAPPENS, ESPECIALLY IN THE CASE OF LIKE HEALTH AND HOUSING WHERE WE NEED PEOPLE A LOT OF THE TIME.
DO THEY, DO WE PAY OVERTIME FOR, FOR THOSE TEMPS OR, OR HOW DOES, HOW DOES THAT PAYMENT STRUCTURE WORK? UM, WE CERTAINLY COULD, DEPENDING ON, UH, THE TEMPORARY AGENCY JOBS COULD ARE LIKE ANY OTHER JOB WHERE IT COULD BE F L S A NON-EXEMPT OR F L S A EXEMPT.
SO IF THEY'RE, IF THEY'RE NON-EXEMPT FROM OVERTIME, THEN THEY ARE PAID OVERTIME.
[01:30:01]
THAT THE, THE, THE FEDERAL RULES FOR, UM, F L S A OVER OVERTIME RULES HAVE THEM BE EXEMPT FROM OVERTIME, IN WHICH CASE THEY WOULD JUST BE PAID THEIR WEEKLY SALARY FOR THE WORK.BUT IF THE LAW REQUIRES US TO PAY OVERTIME, THEY ABSOLUTELY ARE ELIGIBLE FOR THAT.
SO, SO WHETHER OR NOT THEY'RE TEMPS THAT, UH, THAT LAW, UH, APPLIES AND THAT'S, UM, A FEDERAL LAW AND EMPLOYMENT THAT HAS NOTHING TO DO WITH THE GRANTS THAT WE'RE RECEIVING TO FUND THOSE POSITIONS.
NOW SOME OF THE GRANTS MAY HAVE, YOU KNOW, CONCERNS ABOUT HOW MUCH THEY CAN AFFORD AND THEY'RE MONITORING THOSE HOURS MORE CLOSELY, BUT THAT'S A MATTER OF HOW MANY HOURS THEY SCHEDULE FOR TO WORK AS OPPOSED TO WHETHER THEY'RE ELIGIBLE FOR THE, THE OVERTIME OVER 40 IN A WEEK.
UM, THANK YOU VERY MUCH LAURIE FOR, UM, WALKING ME THROUGH THAT.
ANY OTHER CONCERNS OR QUESTIONS FROM ANY OF THE COUNCIL MEMBERS OR THE COMMITTEE MEMBERS? OKAY.
AGAIN, THIS WAS A BRIEFING AND I THINK THEY'VE GOTTEN SOME INPUT FROM OUR COMMITTEE.
WE HAVE TWO FINAL ITEMS, WHICH ARE POSTS, SOLICITATION, HIGH PROFILE BRIEFINGS, UH, IN THIS CASE, UH, THESE WOULD BE RECOMMENDED FORWARD TO THE COUNCIL FOR ACTION SHOULD WE CHOOSE TO DO SO.
[11. 20-7471 Employee Benefits Consultant [Ben Gorzell, Chief Financial Officer; Lori Steward, Director, Human Resources]]
IS EMPLOYEE BENEFITS CONSULTANT.THIS ONE IS ALSO MINE COMMITTEE MEMBER, SO I'D BE HAPPY TO PRESENT THIS ITEM.
THIS IS THE, UH, POST SOLICITATION BRIEFING FOR OUR EMPLOYEE BENEFITS CONSULTANT.
SO WE RELEASED A REQUEST FOR PROPOSALS.
WE WERE SEEKING PROPOSALS FROM EXPERIENCED, UM, ACTUARIAL CONSULTING FIRMS WITH A PROVEN TRACK RECORD FOR COMPREHENSIVE EMPLOYEE BENEFITS CONSULTING SERVICES.
AND THESE ARE SERVICES THAT INCLUDE BUT NOT LIMITED PLAN, DESIGN, REVIEW AND RECOMMENDATIONS, COST ANALYSIS, STRATEGIC PLANNING FOR HEALTHCARE AND WELLNESS SERVICE, ACTUARIAL SERVICES, UM, VENDOR MANAGEMENT, REPORTING AND COMPLIANCE FOR ALL OF OUR EMPLOYEE BENEFIT PLANS.
THIS IS ALSO THE CONSULTANT THAT WILL HELP US WHEN WE DO AN R F P FOR ANY, UH, BENEFIT, UH, PROGRAM FOR CITY EMPLOYEES.
THEY WILL ASSIST US IN OUR COLLECTIVE BARGAINING PROCESSES WHEN IT COMES TO EMPLOYEE BENEFITS.
THE, UM, R F P WAS RELEASED ON AUGUST THE 26TH WITH A DUE DATE OF OCTOBER 12TH.
WE DID RECEIVE SIX PROPOSALS AND WE MET AS A, A REVIEW COMMITTEE, MET ON THE DEC THE 4TH OF DECEMBER TO, UM, SCORE THE SIX PROPOSALS.
SO, UM, I SAY THE ESTIMATED VALUE FOR THIS, UM, CONTRACT IS ABOUT ABOUT HALF A MILLION DOLLARS, UH, ANNUALLY IS A THREE YEAR TERM WITH TWO ONE YEAR RENEWAL OPTIONS.
SINCE THE OUR INITIAL EVALUATION TOOK PLACE, WE EVALUATED THE RFPS THAT WERE RECEIVED FROM THE, UM, SIX VENDORS.
AND BASED ON HOW THE SCORING CAME OUT IN THAT INITIAL EVALUATION, WE IDENTIFIED THE TOP TWO FROM THAT SCORING TO MOVE FORWARD AND HAVE AN INTERVIEW PROCESS.
YOU ALSO NOTE THAT THERE, UM, THAT NONE OF THE BIDDERS HAD ANY OF THE ADDITIONAL POINTS FROM VEDA LOCAL PREFERENCE OR, OR VETERANS' PREFERENCE POINTS.
AND SO WE MET ON, UM, DECEMBER THE 14TH, I BELIEVE, TO DO INTERVIEWS AND FINALIZE THE SCORING.
SO ON THE NEXT SLIDE YOU'LL SEE THOSE RESULTS.
WE INTERVIEWED BOTH FIRMS. WE THEN MET AGAIN TO SCORE THEM, AND WE RECOMMEND THE TOP SCORING VENDOR TO MOVE FORWARD FOR THE CONTRACT.
THE, UM, FINANCE DEPARTMENT AND AUDITOR DEPARTMENT HELPED US DO THE DUE DILIGENCE RESULTS AND, UM, THERE WERE 62 VENDORS NOTIFIED OF THE OPPORTUNITY.
WE DID HAVE SIX ATTEND OUR PRE-SUBMIT CONFERENCE, AND SIX RESPONSES WERE RECEIVED IN THE DUE DILIGENCE REVIEW OR MINIMUM REQUIREMENTS.
AND ALL OF THE OTHER, UM, FINANCE DEPARTMENT DUE DILIGENCE, AS YOU'VE HEARD THEM TALK ABOUT EARLIER TODAY, THERE WERE NO MATERIAL FINDINGS FOR ANY OF THE FIRMS.
[01:35:02]
SO AT THIS POINT, WE ARE, UH, RECOMMENDING MOVING FORWARD TO FULL COUNSEL IN, UH, FEBRUARY WITH THE, UH, RECOMMENDED FIRM.I'D BE HAPPY TO ANSWER ANY QUESTIONS YOU MIGHT HAVE.
UH, AND I THINK THAT, YOU KNOW, THE TOP TWO LOOKED PRETTY GOOD AND THE TOP ONE CERTAINLY, UH, YOU KNOW, CAME OUT AHEAD BY MORE THAN JUST A POINT OR TWO.
SO IT SEEMS, YOU KNOW, PRETTY REASONABLE.
UH, COUNCILMAN, I'LL GET WITH YOU IN JUST A SECOND.
I WANTED TO ASK THOUGH, UH, WHY ARE WE HIRING A CONSULTANT? WHY AREN'T WE USING SOMEONE FROM OUR AUDIT DEPARTMENT, SOMEBODY FROM OUR FINANCE DEPARTMENT, SOMEBODY FROM YOUR DEPARTMENT, UH, OR A GROUP OF PEOPLE UNDER YOUR DEPARTMENT THAT CAN DO THIS KIND OF ONGOING RESEARCH? UH, INSTEAD OF SPENDING OVER A HALF A MILLION DOLLARS A YEAR, WE COULD HAVE TWO OR THREE EMPLOYEES COMMITTED TO THIS FULL-TIME, UH, AND, AND DOING THAT KIND OF RESEARCH FOR US AND SAVE OURSELVES A COUPLE HUNDRED THOUSAND DOLLARS A YEAR.
SO, I MEAN, WHY, WHY DO WE GO OUT TO A CONSULTANT FOR THIS? WHY DON'T WE HIRE EMPLOYEES TO DO IT FOR US FULL-TIME? RIGHT.
WELL, COUNCILMAN, IT IS A, IT IS A FIRM.
SO WE ACTUALLY HAVE ACCESS TO MANY, MANY EXPERTS IN EMPLOYEE BENEFITS AND, UH, ACTUARIAL SERVICES, WELLNESS PROGRAMS. WE HAVE ACCESS TO THEIR LEGAL COUNSEL.
WE HAVE ACCESS TO THEIR EXPERTS THAT SET UP, UM, UH, WELLNESS PLANS AND FITNESS FACILITIES.
EVEN IN, AT TIMES WE HAVE, UH, ACCESS TO RETIREMENT EXPERTS.
UM, THERE'S ACTUARIAL SERVICES, YOU KNOW, THIS IS A SKILL LEVEL THAT WE DON'T HAVE ON THE CITY STAFF RIGHT NOW TO DO THE ACTUARIAL ACTUARIAL EVALUATIONS.
PART OF THIS CONTRACT IS ALSO THE DATA WAREHOUSE SERVICES.
SO ALL OF THE MONTHLY CLAIMS DATA FROM BOTH OUR PHARMACY VENDOR AND OUR MEDICAL VENDOR GET FED INTO THE DATA WAREHOUSE OF ALL OF OUR CLAIMS SO THAT WE CAN CONTINUE TO HAVE UPDATED DATA THAT HELPS US WHEN WE ARE DEVELOPING, UM, EITHER WELLNESS PROGRAMS OR MEDICAL REVIEW PROGRAMS. ALSO PREPARING FOR BUDGET AND KNOWING HOW MUCH IT'S GOING TO COST US AND HOW WE SHOULD BE BREAKING DOWN THE EMPLOYER SHARE VERSUS THE EMPLOYEE SHARE.
WE HAVE ACCESS TO A LOT OF THEIR, UM, BENCHMARK DATA FROM OTHER LARGE EMPLOYERS.
THAT'S VERY VALUABLE INFORMATION TO HAVE.
SO, BENCHMARKING AGAINST, UM, OTHER PROGRAMS, OTHER TYPES OF, UM, PLAN DESIGNS AND, UM, CHANGES IN OUR, UH, COST SHARING TYPES AGREEMENT.
YOU KNOW, YOU HAVE HIGH DEDUCTIBLE PLANS, YOU HAVE H M O PLANS, THERE'S JUST, IT'S JUST A VERY COMPLEX AREA.
SO THIS EXPERTISE IS, IT'S A BROAD EXPERTISE ACROSS A LOT OF WELLNESS AND BENEFIT AREAS.
MULTIPLE PEOPLE THAT, UM, IT WOULD REQUIRE, UH, NOT A COUPLE OF FULL-TIME EMPLOYEES, BUT IT IS A, IT IS A VERY BROAD SCOPE OF EXPERTISE.
NOT TO MENTION THE DATA WAREHOUSING AND THE BENCHMARKING THAT WE HAVE ACCESS TO.
WELL, IT STILL SEEMS TO ME THAT WE COULD HIRE THREE OR FOUR OR FIVE PEOPLE AND STILL PAY LESS THAN A MILLION DOLLAR, UH, YOU KNOW, THE HALF A MILLION DOLLARS A YEAR THAT WE'RE PAYING THEM.
YOU KNOW, I ALWAYS BELIEVE IN PROVIDING MORE JOBS AND HELPING THE CITY DO MORE FOR ITSELF RATHER THAN HIRE ALL THESE CONSULTANTS.
I WANT, BEN, I'D LIKE YOU TO DO ME A FAVOR AND SEND ME A LIST OF ALL THE CONSULTANTS WE'VE HIRED IN THE LAST COUPLE OF YEARS FROM EVERY DEPARTMENT AND WHAT IT'S ALL ADDED UP TO.
ALRIGHT, THAT'S ALL I HAVE TO SAY RIGHT NOW.
IS THERE ANY OTHER COUNCIL MEMBER WHO HAS A QUESTION COMMITTEE MEMBER COUNCILMAN PERRY DID, IF YOU COULD GO BACK TO THE COMPARISON OF, OKAY, SO YOU HAD THE SIX, SIX RESPONDENTS, UH, DID YOU, UM, DOWN SELECT VENDOR A AND B AND GO BACK AND DO AN INTERVIEW WITH THOSE AGAIN? OR DID YOU JUST, HOW YOU GOT THE SIX RESPONDENTS, HOW DID YOU TAKE IT FROM THERE? UM, WE HAD, WE HAD SIX PROPOSALS, JUST SIX DIFFERENT FIRMS SUBMITTED PROPOSALS.
SO WE HAD, UM, ANSWERS TO MULTIPLE QUESTIONS, BOTH UNDER THEIR EXPERIENCE AND ALSO THEIR PROPOSED PLAN AND BACKUP INFORMATION.
SO INFORMATION WE REVIEWED THE COMMITTEE ALL REVIEWED THE INFORMATION THAT WAS PRESENTED IN THE, UM, R FP PACKET, AND WE MET AS A COMMITTEE AND DID THE INITIAL SCORING FROM THAT, THE WRITTEN RESPONSE TO ALL OF
[01:40:01]
THE QUESTIONS AND ALL OF THE INFORMATION SUBMITTED IN WRITING.AND THEN IT WAS SHORTLISTED TO VENDOR A AND B, THE TOP SCORING VENDORS THAT WAS SHORTLISTED.
AND THEN WE BROUGHT THEM IN VIRTUALLY TO INTERVIEW THEM AND TALK TO THEM IN PERSON.
SO YOU DID A, YOU DID A SHORTLIST AND THEN, UM, NARROWED IT DOWN TO TWO.
UM, WHAT, WHAT WERE THE, I MEAN, EXPLAIN IN SIMPLE TERMS WHY YOU HAD THE, THE, THE DISPARITY BETWEEN THE TOP TWO FIRMS, AARON, WHAT WERE THE BIGGEST, BIGGEST DIFFERENTIATORS BETWEEN THE TOP TWO? YEAH, WE LOOKED AT ISSUES AND WE LOOKED AT, AT ISSUES ABOUT WHETHER THEY WERE ALL, UM, SELF-CONTAINED OR WHETHER THERE WERE ANY, UM, UM, OTHER SUBCONTRACTS INVOLVED.
OR ONE OF THE THINGS WE LOOKED AT WE'RE JUST LOOKING AT THE OVERALL EXPERIENCE, LOOKING AT THE SIZE OF A WORKFORCE SUCH AS OURS AS IT COMPARE AND SIZE, WHO HAS THE MOST EXPERIENCE WORKING WITH, UM, A PUBLIC SECTOR WORKFORCE LIKE WE HAVE, WHICH INCLUDES BOTH PUBLIC SAFETY AND, YOU KNOW, CIVILIAN WORKFORCE.
JUST THE, THE DIVERSITY OF THE GROUPS OF EMPLOYEES THAT WE HAVE.
UM, THERE, THE DATA WAREHOUSE WAS A DIFFERENTIATOR.
DID, WAS IT SOMETHING THAT WAS PROPRIETARY THAT WE COULD, UM, GET MORE UTILIZATION OUT OF BETTER USAGE FOR US? OR WAS IT MORE JUST A, A PACKAGE KIND OF A WAREHOUSE? YOU KNOW, WAS THERE ADDITIONAL REPORTING THAT WE COULD GET FROM THAT? SO, I MEAN, BOTH OF THEM, BOTH OF THE VENDORS ARE HIGHLY QUALIFIED VENDORS, THERE'S NO DOUBT.
BUT IT WAS JUST LOOKING AT WHICH ONE APPEARED TO HAVE THE EXPERTISE THAT BEST FIT OUR NEEDS WITH THE REPORTING AND THE DATA THAT WE COULD GET.
WE LIKE TO RELY A LOT WITH OUR COLLECTIVE BARGAINING ON HAVING THE ACTUARIAL ACTUARIAL EVALUATION DONE ON OUR PLANS AND ALL OF THE PROPOSALS THAT ARE MADE.
AND HAVING, YOU KNOW, FAST, YOU KNOW, HOW FAST THE RESPONSE TIME IS AND WHAT KIND OF ACCESS WE HAVE TO THAT TOP LEVEL OF ACTUARIAL EXPERT WAS VERY IMPORTANT TO US AS WELL.
'CAUSE I, I SEE SOME ZEROS ON, ON VENDOR VENDOR B AND VENDOR A, UM, VENDOR A GOT THE POINTS, AT LEAST FROM WHAT I'M HAVING A HARD TIME READING THIS CHART.
I DON'T, IS THAT ZEROS THE ZERO? YEAH.
COUNCILMAN, MAYBE I CAN JUST ADD IN HERE, LAUREN, IF YOU COULD MAKE THAT A LITTLE, A LITTLE BIT BIGGER, BUT CETA, LOCAL PREFERENCE AND VETERANS PREFERENCE, ALL SIX FIRMS, NONE OF THEM RECEIVED ANY POINT FOR THAT.
THERE'S A LITTLE BIT TOO BIG LAUREN, GO DOWN A LITTLE BIT MORE.
I, I I WAS SEEING, UM, VENDOR A HAVING POINTS AND VENDOR B NOT HAVING POINTS.
SO THOSE WERE ALL ZEROS ON THAT.
AND, UM, WHEN WE WERE, WHEN WE WERE ON THE FACILITATION, WERE WE GETTING ANY FEEDBACK ABOUT THAT FROM, UH, VENDORS SAYING, HEY, THIS IS, UH, WE DON'T HAVE THOSE TYPES OF, OF, UH, UH, QUALIFICATIONS.
I MEAN, DID WE, DID WE GET THAT KIND OF INFORMATION FROM THEM DURING THE PRES SOLICITATION THAT, YOU KNOW, WE, WE SHOULD HAVE, IF WE DID, WE SHOULD HAVE SAID, OKAY, WELL IF THERE'S NOBODY OUT THERE PROVIDING THESE, MAYBE WE SHOULDN'T MAKE THAT A CRITERIA ITEM AND PUT MORE, UH, EMPHASIS LIKE ON PRICE AND, AND THOSE KIND OF THINGS.
BECAUSE I SEE VENDOR B ACTUALLY BIT B A ON PRICE.
UM, BUT ALL THOSE ZEROS UNDERNEATH, UM, UH, I GUESS WHY DID WE INCLUDE THAT IF WE'RE, WE WEREN'T GETTING ANY RESPONSES FROM THEM ABOUT THAT.
SO COUNSEL, THIS HAS BEEN, I'M NOT AWARE THAT WE GOT ANY FEEDBACK REGARDING LOCAL PREFERENCE OR SAB BETA DURING THE PRE-PROPOSAL CONFERENCE, BUT AT THE CITY POLICY, AS YOU KNOW, UH, WE ALWAYS GO TO A GOAL SETTING COMMITTEE, UM, TO LOOK AT, UH, POTENTIALLY ADDING IN SUB BETA IF THERE'S, UH, THE OPPORTUNITY TO DO SO.
SO THAT WAS DONE IN THIS CASE.
AND THEN WE, WHERE WE CAN, WE TRY TO ADD IN LOCAL PREFERENCE AND VETERANS PREFERENCE AS WELL.
NOW, AT THE END OF THE DAY, THE PRE-PROPOSAL CONFERENCE DOESN'T NECESSARILY TELL US WHO MAY, WHO ELSE MAY BE OUT THERE THAT COULD BID.
UM, SO THESE ARE TOOLS THAT THE CITY HAS IN PLACE FROM A POLICY PERSPECTIVE THAT WE TYPICALLY ADD IN ON OUR R F P PROCESS IN THIS CASE, UH, WITH THESE SIX FIRMS, WE JUST DIDN'T HAVE ANYBODY COME BACK THAT MET THE CRITERIA FOR THOSE THREE PROGRAMS, UH, THIS TIME AROUND.
YEAH, I'M, I'M JUST, I'M JUST LOOKING AT THAT SAYING, WELL, IF THERE WAS SOMEBODY IN THERE WITH, WITH, UH,
[01:45:01]
UH, LIKE SCORES, BUT HAD ONE OF THOSE ITEMS FILLED, THEY WOULD'VE GOTTEN IT RIGHT OFF THE BAT.UM, SO ANYWAY, JUST JUST TO COMMENT ON THAT, THAT I, I DON'T HAVE ANY OTHER COMMENTS.
ANY OTHER QUESTIONS OR CONCERNS FROM ANY OTHER COMMITTEE MEMBERS? OKAY, THEN THIS IS, UH, UH, A BRIEFING THAT WE'RE GOING TO RECOMMEND TO THE COUNCIL FOR THEIR CONSIDERATION, EMPLOYEE BENEFITS CONSULTANT.
SO I'M OPEN FOR ANY, UH, ANY MOTION TO GO AHEAD AND MOVE TO COUNCIL.
ALL THOSE IN FAVOR OF, UH, MOVING THE CITY COUNCIL FOR FURTHER ACTION, APPROVING IT, SAY AYE.
ANY OPPOSED? OKAY, HEARING NONE, ITEM 11, EMPLOYEE BENEFITS HAS MOVED TO COUNCIL FOR FURTHER CONSIDERATION.
[12. 20-7468 Neighborhood Improvements Bond Program - S. San Pedro Avenue Affordable Housing Redevelopment Project [Lori Houston, Assistant City Manager; Verónica R. Soto, Director, Neighborhood & Housing Services]]
NUMBER 12, OUR LAST ITEM TODAY IS NEIGHBORHOOD IMPROVEMENT BOND PROGRAM.WHO WILL BE PRESENTING ON THIS ALSO, UH, RAZZIE.
I HAVEN'T FORGOTTEN ABOUT YOU ON, UH, ITEM NUMBER SEVEN.
SO, UH, WE WILL ASK YOU TO UPDATE US ON THAT AT THE END.
HI, UM, GOOD MORNING,
UM, SO THIS IS A POST SOLICITATION BRIEFING FOR OUR NEIGHBORHOOD IMPROVEMENT BOND PROGRAM FOR A PROJECT AT SOUTH
SO, JUST SO YOU KNOW, UM, THE LOCATION OF THIS SITE, IT IS LOCATED AT FOUR 19 AND 4 25 SOUTH SAN PEDRO, JUST, UH, ABOUT A MILE NORTHWEST OF DOWNTOWN.
THE TOTAL ACREAGE FOR THE SIDE IS 0.95 ACRES.
SO IT'S A VERY SMALL, SMALL, AND WE'LL GO ON TO THE SECOND SLIDE PLEASE.
AS I MEN MENTIONED, THIS IS A SOLICITATION FOR A DEVELOPER TO CONSTRUCT RENTAL HOUSING DEVELOPMENT AT THAT ADDRESS IN ACCORDANCE WITH OUR CITY COUNCIL ADOPTED URBAN RENEWAL PLAN PLAN.
WHEN WE PUT THIS SOLICITATION TOGETHER, WE ASK THAT 100% OF THE UNITS BE AFFORDABLE TO FAMILIES AT OR BELOW 60% OF THE AREA MEDIAN INCOME.
AND WE ASK FURTHER THAT 60% OF THE TOTAL UNITS BE AVAILABLE TO FAMILIES MAKING 50% OF THE AREA MEDIAN INCOME OR BELOW.
AND THE CITY'S CONTRIBUTION TO THE, UH, AS LAND SITE AND SITE READINESS, UH, IS WHAT SERVES AS OUR GAP FINANCING TOOL.
IN ORDER TO MAKE THIS AFFORDABLE FOR OUR COMMUNITY, THE LAND VALUE IS ESTIMATED AT 2 MILLION AND THE GAP AT 2.65 MILLION.
THE TERM FOR THIS WOULD BE THREE YEARS, AND THE SOLICITATION WAS VIA AN R F P PROCESS.
SO WE GO ON TO THE NEXT SLIDE THAT HAS THE UNIT MIX.
I KNOW THIS IS INFORMATION THAT COUNCIL IS, UM, HAS ASKED ABOUT.
AND SO WE WANTED A MINIMUM OF 50 UNITS AT THIS VERY SMALL SITE.
WHAT WE, UH, WERE ABLE TO, UH, COME BACK WITH IS AROUND 80 UNITS, AND YOU CAN SEE THE INCOME MIX THERE.
UM, ONE OF THE THINGS THAT THIS WOULD DO IS, FIRST AND FOREMOST FAMILY SIZE UNITS.
SO THESE ARE ALL TWO AND THREE BEDROOMS. THERE'S NO STUDIOS, THERE ARE NO ONE BEDROOM.
AND YOU CAN SEE THAT WE HAVE A GOOD NUMBER OF UNITS SET ASIDE AT 30% A M I.
AND SO WE'RE VERY DELIGHTED ABOUT THAT.
AND YOU CAN SEE THE, THE RENT RANGES FOR BOTH THE TWO BEDROOM AND THE THREE BEDROOM UNITS AS WELL BY THE INCOME BRACKETS HERE.
SO ALL OF THESE 80 UNITS ARE FAMILY SIZE, 41 OF THEM, TWO BEDROOM AND 39 3 BEDROOM.
SO WE WANTED TO MAKE SURE WE SHARED THIS.
THE NEXT SLIDE, UM, TALKS ABOUT THE, THE RESPONSES.
SO WE ONLY HAD ONE SOLE RESPONSIVE, UH, RESPONDENT FOR THE R F P, EVEN THOUGH WE DID A LOT OF, UH, OUTREACH TO INDIVIDUALS AND FIRMS THAT HAVE EXPRESSED INTEREST IN THE R F P.
UM, AND SO THE EVALUATION COMMITTEE AND JUST FOR THE RECORD, SO YOU KNOW WHO THOSE FOLKS ARE, UM, THE EVALUATION COMMITTEE CONSISTED OF ASSISTANT CITY MANAGER, LAURIE HOUSTON, THE CHAIR OF OUR NEIGHBORHOOD IMPROVEMENT ADVISORY COMMITTEE,
[01:50:01]
MR. RAYMOND FLORES, AND A BOARD MEMBER OF OUR R SS A, UH, BOARD, WHICH IS OUR URBAN RENEWAL AGENCY, MARIA NELSON AND MYSELF.SO, UH, WE DID AN INTERVIEW WITH THE SOLE RESPONSIVE BIDDER, UM, AND WE ARE RECOMMENDING THAT THIS BE AWARDED TO THAT BIDDER SO THAT WE CAN TAKE THIS ITEM FORWARD TO CITY COUNCIL IN FEBRUARY, FEBRUARY 4TH.
AND, UM, THIS WOULD BE OUR FOURTH
AND THAT CONCLUDES, UM, MY PRESENTATION AND THE, OH, SORRY, THE NOTIFICATION.
THE NEXT SLIDE HAS ALL THE NOTIFICATION THAT WAS DONE, NOT JUST BY OUR DEPARTMENT, BUT BY THE FINANCE DEPARTMENT AS WELL.
SO WE DID DO, UM, A LOT OF OUTREACH TO GET FOLKS, WE DID HAVE A GOOD NUMBER OF FOLKS PARTICIPATE IN THE PRE-SUBMIT CONFERENCE FOR THIS, BUT AGAIN, WE ONLY RECEIVED ONE, UM, RESPONSE THAT WAS RESPONSIVE, UM, WITH NO FINDINGS FROM OUR DUE DILIGENCE REVIEW.
AND THIS IS THE LAST SLIDE, SO I'D BE HAPPY TO ANSWER ANY QUESTIONS SHOULD YOU HAVE THEM.
UH, I HAVE A COUPLE OF QUESTIONS.
IT'S QUITE OBVIOUS TO ME THAT, UH, THIS IS A VERY CHALLENGING TYPE OF A PROJECT TO BUILD.
'CAUSE YOU'RE TALKING ABOUT 80 UNITS ON A VERY SMALL PIECE OF PROPERTY, AND YOU'RE, YOU'RE LOOKING AT PROVIDING RENTS THAT ARE AT OR BELOW 60% OF AREA MEDIAN INCOME.
AND SO I, I CAN ALMOST UNDERSTAND WHY THERE WAS REALLY ONLY ONE BIDDER THAT ACTUALLY CAME OUT AND SAID, I, I CAN DO THIS.
UH, DID YOU GET ANY FEEDBACK THAT WOULD BE USEFUL FROM THE OTHER EIGHT WHO DIDN'T BID, UH, THAT MIGHT HELP US UNDERSTAND WHY THEY DIDN'T AND, UH, HOW WE COULD CONTINUE WITH ANY SIMILAR PROJECTS, UH, THAT, YOU KNOW, MIGHT NEED A LITTLE TWEAKING TO, UH, HAVE THEM MOVE FORWARD IN THIS THIS CIRCUMSTANCE? YES, COUNCILMAN, GREAT QUESTION.
UM, AS SOON AS WE GOT ONLY ONE RESPONSE, UM, I TOO WAS CONCERNED ABOUT THAT BECAUSE WE WANT TO GET THE BEST FOR THE CITY AND THE COMPETITION FROM DIFFERENT RESPONSES ENSURED WE SELECT, UM, PROBABLY THE BEST PROJECT.
SO I ASKED THE EXACT SAME QUESTION, WHY WOULDN'T WE GET MORE SOLICITATION? SO WE REACHED OUT TO THE FOLKS WHO HAD, UH, ATTENDED THE, UH, THE, THE BRIEFING IN BETWEEN.
UM, BECAUSE, BECAUSE WE, WE THOUGHT WE WOULD GET A LOT OF INTEREST GIVEN THAT WE HAD THOSE FOLKS THERE.
UM, SOME OF IT HAS TO DO WITH THE CAPACITY OF THE CURRENT DEVELOPERS.
A FEW OF THEM, UH, INDICATED THAT THEY WERE TAPPED OUT, BASICALLY HAVE OTHER PROJECTS THAT THEY'RE CLOSING OR IN THE MIDDLE OF.
AND SO THEY DIDN'T HAVE THE CAPACITY TO TAKE ON AN ADDITIONAL ONE.
THERE'S A FEW THAT HAVE OTHER DEALS THAT THEY ARE WORKING ON.
AND SO, UM, THEY, THEY ALREADY HAD LAND.
THEY DIDN'T HAVE TO GO THROUGH THE CITY FOR THOSE DEALS.
AND SO THEY WENT THROUGH, THROUGH THOSE DEALS WITH THEIR, UH, PROCESS INSTEAD OF HAVING TO ENTER INTO AND NEGOTIATE A CONTRACT WITH US.
UM, SO OUR PROCESS WAS, UM, WAS NOT SOMETHING THAT THEY WERE GONNA FOLLOW SINCE THEY ALREADY HAD OTHER DEALS THEY WERE WORKING ON.
WE ALSO STRUCTURED THIS, UM, TO MAKE SURE WE HAD LAYERING, BECAUSE TO US ACHIEVE THE DEEPER AFFORDABILITY, YOU ALWAYS HAVE TO LAYER THE, THE KIND OF INCENTIVES TO MAKE THE, THE RENT, UM, AS LOW AS WE SAW.
AND SO WE STRUCTURED THIS ONE TO BE, UM, A, A HOUSING TAX CREDIT AND, UM, THAT IS A SPECIALIZED DEVELOPMENT AREA.
UM, THERE'S DEVELOPERS LOCALLY WHO OF COURSE DO THAT.
UM, BUT THEY ALL HAD, UM, TO LOOK AT WHAT ELSE THEY HAD IN THE PIPELINE AS WELL.
UM, WE'LL CONTINUE TO DIG INTO THAT.
UM, I, I THINK THE SITE BEING SMALL, UM, AND THE LAYERING THAT WAS REQUESTED WAS THE CHALLENGE.
UM, BUT WE CERTAINLY DON'T WANNA HAVE JUST ONE BID FOR THESE KIND OF PROJECTS AND WE'LL CONTINUE TO DIG DEEPER TO SEE WHAT WE CAN IMPROVE SO THAT WE DO HAVE MORE INTEREST AND MORE COMPETITION AND THE BEST DEALS, UM, AND THE BEST COMING FORWARD FOR THE CITY.
I'M GLAD TO HEAR YOU SAID YOU'RE GOING TO DO MORE DIGGING BECAUSE I THINK, UH, YOU KNOW, IT'S EASY FOR SOMEBODY TO SAY, WELL, I HAVE OTHER PRODUCTS AND I I DON'T HAVE THE TIME OR THE CAPACITY RIGHT NOW, BUT YEAH, DOING A LITTLE BIT MORE DIGGING AND FINDING OUT IF THERE'S ANY OTHER UNDERLYING, UH, THINGS WE NEED TO CONSIDER I THINK IS IMPORTANT.
I HAVE A QUESTION ABOUT THE, THE PROJECTED
[01:55:01]
RENTS.NOW, OBVIOUSLY THESE ARE BASED ON A M I TODAY, BY THE TIME THIS PROJECT GETS BUILT AND PEOPLE ARE READY TO MOVE IN, THAT A M I WILL WILL BE A LITTLE BIT DIFFERENT.
THOSE RENTS WILL BE A LITTLE BIT HIGHER, BUT HOW LONG IS THE FIXED THE FIX ON KEEPING THOSE RENTS AT THOSE RATES AT OR BELOW 60%? 50%, 30% WHATEVER WE HAVE IN THERE.
SO AS I MENTIONED, WE STRUCTURE THIS TO BE A HOUSING TAX CREDIT.
UM, THAT'S THE OTHER LAYER OF INCENTIVE OR SUBSIDY THAT WILL GO INTO THIS.
AND SO THE HOUSING TAX CREDIT PRODUCT TENDS TO HAVE A 30 YEAR AFFORDABILITY COVENANT.
THE FIRST PERIOD IS FOR 15 YEARS.
UH, AND WE'LL GO WITH THAT AND THEN, UM, AT THAT POINT THEY CAN COME BACK AND REFINANCE.
UM, BUT FOR THE MOST PART IT IS ABOUT 30 YEARS FOR AFFORDABILITY.
UM, AND SO WE WOULD BE LOOKING AT KEEPING THE RENT AFFORDABLE FOR FAMILIES AT THOSE AMIS FOR THAT PERIOD OF TIME.
UH, AND OUR CONTRACT WOULD ALSO REFLECT THAT.
WELL, SO THEY'LL BE GOING TO THE STATE FOR 4%.
UM, IT'S EITHER A 4% OR A 9% IS WHERE IS ACTUALLY GOING TO GO FOR A 9%.
YEAH, BUT THAT'S VERY COMPETITIVE.
IF THEY DON'T GET IT, WHAT HAPPENS THEN? WE WOULD, UH, REASSESS WHAT THE GAP IS, UM, AND 99% END UP BECOMING 4% TAX CREDIT DEVELOPMENTS AND WE WOULD REASSESS, UM, WHAT THE GAP WOULD BE AT THAT POINT AND, UM, PERHAPS HAVE TO, UM, COME BACK OR REVISIT THIS.
IT IS A VERY COMPETITIVE PROCESS.
ALRIGHT, WELL I THINK THIS IS A GREAT EFFORT TO GO AHEAD AND, AND FIND MORE AFFORDABILITY INTO THE PRODUCTS THAT WE SUPPORT WHEN IT COMES TO BUILDING MORE HOUSING IN THE CITY.
I HOPE WE'RE SUCCESSFUL GOING FORWARD, BUT IF WE NEED TO COME BACK AND, AND LOOK AT THIS AGAIN AND MAKE MORE ADJUSTMENTS, UH, THROUGH YOUR OFFICE, I'D CERTAINLY BE WILLING TO CONSIDER THAT, UH, THIS OPEN FOR ANY OTHER QUESTIONS? I THINK COUNCILWOMAN SANDOVAL, YOU HAVE A QUESTION? YES, CHAIR.
YOU'VE GOT SO MANY THINGS GOING ON IN IN THAT DEPARTMENT.
UH, QUESTION HOW MANY OF THE, OUR SA UH, OR HOUSING BOND HAVE GONE THROUGH? HOW MANY DEALS HAVE GONE THROUGH SO FAR, OR THE COUNCIL ANYWAY? SO THERE'S ALREADY THREE THAT HAVE BEEN APPROVED BY CITY COUNCIL, UM MM-HMM
UM, IF THIS GOES FORWARD NEXT MONTH IT WOULD BE THE FOURTH BOND PROJECT.
CAN YOU TELL ME ON SLIDE TWO THERE IS, UH, ON THE BOTTOM RIGHT HAND CORNER, IT SAYS PROPOSED TERM THREE YEARS.
THE PROPOSED TERM IS FOR THE CONSTRUCTION OF THE, UM, ACTUAL FACILITY.
SO THERE, THIS IS THE, UM, WHEN THE UNIT WOULD BE AVAILABLE.
SO WE ARE ASKING THAT THEY CONSTRUCT AND BASICALLY HAVE THE UNIT, UM, ABLE TO BE, UM, LIVED IN IN THREE YEARS.
AND SO THAT'S WHEN THE HOUSING BOND ITSELF WOULD BE ABLE TO, UM, PROVIDE THE GAP FUNDING.
UM, BUT THE COVENANT FOR AFFORDABILITY GOES BEYOND THAT.
THIS IS JUST THE CONSTRUCTION OF THE UNIT AND THE REIMBURSEMENT THAT WOULD COME FOR, FOR THE GAP.
SO, UM, ASSUMING THAT THEY GET THEIR TAX CREDIT APPROVED WITHIN THAT TIME, WITHIN NUMBER OF TIMES TO ACTUALLY DO THE CONSTRUCTION AND, UM, SO I'M SORRY, DOES SOMEONE HAVE TO BE LIVING IN THERE OR DOES IT JUST HAVE TO BE CONSTRUCTED IN IN THREE YEARS? UM, IN THREE YEARS WE ASK THAT THE FIRST, UH, CERTIFICATE OF OCCUPANCY BE ISSUED.
SO THEY DON'T HAVE TO BE LIVING THERE, BUT IT HAVE TO BE, UM, SO THAT PEOPLE CAN START LIVING THERE.
UM, QUESTION, UM, IN TERMS OF IF IT'S A TAX CREDIT PROPERTY, WHAT ABOUT, UM, WILL IT BE A PRIVATE PROPERTY OR A PUBLIC OR A NONPROFIT PROPERTY? UH, THAT WILL BE PAYING PROPERTY TAXES.
THIS WOULD BE PRIVATE, SO IT WOULD BE, UH, SUBJECT TO PROPERTY TAXES.
UM, THERE'S A LOT OF HOUSING TAX CREDIT DEVELOPMENTS THAT ARE PRIVATE AND SO THEY'RE SUBJECT TO, UM, TAXES, LIKE SIMILAR PROJECTS.
UM, SOME OF THEM DO HAVE EXEMPTIONS, BUT IT DEPENDS ON, UM, THE STRUCTURES
[02:00:01]
AND THE PARTNERSHIP.SO THIS ONE, THIS ONE DOES HAVE A PARTNERSHIP, UM, AND I DON'T REMEMBER IF IT'S 100% OR 50% TAX EXEMPTION ON THIS ONE, SO I'LL HAVE TO GET BACK ON YOU TO THAT.
UM, BUT LET ME CHECK ON THE PARTNERSHIP STRUCTURE TO SEE IF THEY'RE GETTING 50% OR A HUNDRED PERCENT TAX EXEMPTION ON THIS ONE.
UM, AND LET ME GET BACK, UM, BECAUSE MANY HOUSING TAX CREDIT IS TO GET SOME KIND OF TAX EXEMPTION MM-HMM.
AND, AND THE REASON I ASK, UH, VERO IS BECAUSE PROPERTY TAXES ARE PROBABLY ONE OF THE MOST, UM, UNPREDICTABLE YET CONTINUOUSLY INCREASING, UH, EXPENSES THAT, THAT WE SEE IN, IN HOUSING.
AND SO, SO HAVING THAT FIXED, WHETHER IT'S IT'S, YOU KNOW, IF THEY'RE A HUNDRED PERCENT TAX EXEMPT, THEN I THINK THERE'S A LOT MORE PREDICTABILITY TO WHAT THEIR ONGOING EXPENSES ARE GOING TO BE AND WHAT THEY PASS ON AS, AS RENT.
EVEN THOUGH WE'RE FIXING, YOU KNOW, 50 OR 60% A M I, UM, I HAD A, A SITUATION IN, IN MY DISTRICT WHERE IT, IT WAS AT X PERCENT A M I, HOWEVER, AT ONE POINT THE A M I GOT REEVALUATED AND THAT MEANT THAT EVEN THOUGH YOU WERE, YOU, YOU WERE ELIGIBLE TO LIVE THERE MAYBE IN 20, YOU KNOW, 12 OR 2015 BECAUSE YOU MET THOSE REQUIREMENTS.
UM, AND YOU COULD STILL LIVE THERE.
NOW THE A M I HAD GONE UP, SO THE RENTS WENT UP ACCORDINGLY SO THAT THE, SO THAT THE PERSON WHO WAS LIVING THERE BEFORE, WHILE ELIGIBLE COULD NOT MEET THOSE RENTS AND THEREFORE WAS, UM, IN OUR CASE WHAT WE DID WAS MANY OF THOSE SENIORS LEFT THE FACILITY, BUT THE REST, WE GOT THEM, UH, ON A DEAL WITH THE FOOD BANK.
SO THAT THAT'S HOW THEY CAN MAKE ENDS, ENDS MEET.
SO, SO I GUESS WHAT I WANNA KNOW IS HOW OFTEN WILL THE A M I BE REEVALUATED, HOW FREQUENTLY DOES THAT HAPPEN? SO, UM, THAT'S SEPARATE FROM THE SOLICITATION AND THIS PROCESS, AND I'M HAPPY TO TALK OFFLINE ABOUT IT.
UM, BUT EVERY YEAR THE AREA MEDIAN INCOME DOES GET EVALUATED.
UM, IT'S SOMETHING HU ABOUT, UM, EVERY JUNE OR SO, AND SO, UM, FOR EVERY METRO AREA IN THE, THE COUNTRY, EVERY M SS A AND SO THAT A M I COMES DOWN EVERY JUNE, ALL THE AGENCIES THAT USE IT, A LOT OF AGENCIES THAT WORK ON HOUSING, UH, IN AFFORDABLE HOUSING FROM SAHA TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS, UM, UPDATE EVERY YEAR BASED ON THAT.
AND SO EVERY YEAR THEY ASSESS IT.
UM, AND RENTS DON'T ALWAYS HAVE TO GO UP, BUT THEY OFTEN DO, UM, FOR TAX CREDITS BECAUSE WHAT THEY DO IS THEY BUILD UNITS AT THE A M I, THEY DON'T LOCK IN THE RENT PER SE, THEY LOCK IN, WE'RE GONNA, UM, SERVE THIS A M I AND SO RENT CAN INCREASE.
UM, THERE ARE SOME, UH, COVENANTS THAT REQUIRE THE CITY TO SIGN OFF ON ANY RENT INCREASES.
AND SOME THAT SAY, EVEN THOUGH YOU COULD INCREASE IT MORE, YOU CAN ONLY INCREASE, INCREASE IT BY A CERTAIN PERCENT EVERY YEAR.
UM, HERE I HAVEN'T SEEN MANY OF THOSE, BUT THERE'S SOME COVENANT FOR C D B G AND HOME UC WHERE THEY SAY, EVEN THOUGH YOU COULD INCREASE IT 10%, WE'RE GONNA LIMIT THAT.
IT'D BE NO MORE THAN 5%, FOR EXAMPLE.
SO IT DEPENDS ON HOW YOU WRITE THE CONTRACT AND THE COVENANT, UH, WITH REGARD TO THAT.
BUT A M I DOES GET ASSESSED EVERY YEAR, UM, AND IN THE, UM, IN OUR N S A IT HAS BEEN GOING UP, UM, AND IT, IT HAPPENS NATIONALLY EVERY JUNE.
SO, UM, SO THANK YOU FOR, FOR BRINGING UP THOSE, THOSE OPTIONS.
I DON'T KNOW IF IT'S POSSIBLE TO USE SOME OF THEM BEFORE THIS CON IN THIS CONTRACT GOING TO COUNCIL.
UM, I DON'T KNOW THAT THAT'S, YOU KNOW, EVEN BEEN DISCUSSED WITH THE, WITH THE BIDDER, BUT I THINK IF WE DON'T DO SOMETHING LIKE THAT, THEN EVEN IF WE HOUSE PEOPLE IN THREE YEARS, IN FOUR YEARS, THOSE SAME PEOPLE MAY BE OUT OF A HOME, RIGHT? IF THE RENT GOES UP, IF WE DON'T HAVE ANY GUIDANCE ABOUT THAT, OR IN FIVE YEARS, THEY MAY BE OUT OF A HOME IF THEIR INCOME ISN'T INCREASING WITH THE AREA MEDIAN INCOME.
AND THAT'S, I DON'T THINK, YOU KNOW, I I SAT ON THE NEIGHBORHOOD IMPROVEMENT, UH, ADVISORY COMMITTEE OR CITIZENS BOND ADVISORY COMMITTEE, AND THAT'S NOT THE GOAL, RIGHT? THE GOAL ISN'T JUST TO HOUSE PEOPLE FOR TWO YEARS UNTIL THE A M I GETS READJUSTED.
THE GOAL IS TO HELP PEOPLE, UM, PREDICTABLY, SECURELY, RIGHT? SO THAT YOU CAN MOVE
[02:05:01]
ON, DO THINGS WITH YOUR LIFE, AND NOT BE WORRIED THAT EVERY, EVERY FEW MONTHS YOU MIGHT BE OUT OF A HOME.UH, SO I WOULD, UH, STRONGLY RECOMMEND THAT WE, THAT WE PURSUE SOME SORT OF COVENANT AGREEMENT OR, UH, OR A, A COMEBACK TO COUNCIL FOR, FOR HOW MUCH? OH GOSH, THAT WOULD BE VERY TERRIBLE IF WE'VE HAD TO DO THAT EVERY TIME.
BUT, BUT SOMETHING THAT'S GOING TO PROTECT THE RENTER.
UM, WOULD IT BE POSSIBLE TO, TO COME BACK WITH AN OPTION LIKE THAT? BE? WE CAN LOOK AT IT, UM, BUT IT, IT REALLY DEPENDS ON THE ADDITIONAL FINANCING.
SO, UM, FOR THIS ONE, WE WOULD BE SUBJECT TO THE HOUSING TAX CREDIT BECAUSE THAT'S THE, THAT WOULD END UP BEING A MORE SIGNIFICANT FINANCING SOURCE THAN, THAN OUR GAP.
UM, I'M NOT SURE THOUGH AT, AT THE MOMENT BECAUSE WE HAVE TO LOOK AT HOW THE, THE FINANCING, IF THIS BECOMES A HOUSING TAX CREDIT WOULD WORK.
UM, BUT, BUT I'M LISTENING AND, AND I HEAR WHAT YOU'RE SAYING.
I'LL BRING IT UP WHEN IT GOES TO COUNCIL TOO.
ANY OTHER COMMITTEE MEMBERS HAVE ANY QUESTIONS? COUNCILMAN PERRY? YEAH, UH, I HEARD THE EXPLANATIONS WHY WE HAD ONLY ONE BIDDER ON THIS, BUT, UM, I I, I DON'T EXPECT IT TO GET ANY BETTER ANYTIME SOON, ESPECIALLY WHEN WE'RE, WE'RE REALLY GETTING INTO THIS DEEP FINANCIAL ASSISTANCE ON, ON THESE PROJECTS.
UM, THERE'S A LOT OF OTHER OPPORTUNITIES OUT THERE FOR, FOR CONTRACTORS AT THIS POINT, AND DEVELOPERS.
SO I, I DON'T EXPECT THIS TO GET ANY BETTER AND, UH, THIS, THIS DEEP DIVE INTO THE AFFORDABILITY ASPECT, AND I AGREE WITH COUNCILWOMAN SOUND OF ALL THIS, THIS, THAT PARTICULAR ISSUE WILL CONTINUE TO BRING, BE BROUGHT UP, BUT EVERY TIME YOU GET A BUREAUCRACY INVOLVED IN, IN AN OPEN MARKET OR A FREE MARKET OF THE CONSTRUCTION INDUSTRY WHERE IT'S ALL ABOUT SUPPLY AND DEMAND, THINGS GO HAYWIRE AND THEY'RE GONNA CONTINUE TO GO HAYWIRE ON A, ON A BUREAUCRATIC FUNCTION LIKE THIS, ON DIRECTING CERTAIN REQUIREMENTS ON THE, ON A DEVELOPER AND OR CONSTRUCTION INDUSTRY.
SO I DON'T, I DON'T SEE THIS GETTING ANY BETTER WITH THIS PART, WITH THIS TYPE OF A PROJECT.
ESPECIALLY RIGHT NOW WHEN OUR, OUR CONSTRUCTION INDUSTRY IS STRAPPED FOR LABOR, IT'S, UM, UH, VERY, VERY
I JUST WENT TO THE HOUSING FORECAST FOR 2021 AND, UM, IT'S, IT'S GONNA GET, IT'S GONNA GET EVEN MORE TIGHT THAN WHAT WE HAVE RIGHT NOW.
SO I EXPECT PRICES TO CONTINUE TO GO UP.
YOU KNOW, WE'RE, WE'RE, WE'RE STRUGGLING WITH TRYING TO MAKE THIS AFFORDABILITY BUSINESS, UM, YOU KNOW, EVEN MORE AFFORDABLE, BUT THAT'S NOT THE WAY THE ECONOMICS ARE WORKING OUT RIGHT NOW.
THAT'S NOT WHAT THE SUPPLY AND DEMAND IS, IS DICTATING RIGHT NOW.
SO, YOU KNOW, WE'RE JUST GONNA KEEP CHASING OUR TAILS ON THIS STUFF.
I, I DON'T KNOW WHAT THE OUTCOME WILL BE, BUT I CERTAINLY EXPECT US TO CONTINUE TO GET THIS TYPE OF RESPONSE FROM, FROM DEVELOPERS AND CONTRACTORS WHERE WE ONLY GET ONE AND MAYBE NOT ANY ON FUTURE FUTURE OPPORTUNITIES LIKE THIS.
AND IT, IT'S SAD, BUT THAT IS THE NATURE OF THE INDUSTRY RIGHT NOW.
AND FOR US TO CONTINUALLY TRY TO DRIVE IT IN A, UH, DIFFERENT DIRECTION, UH, I DON'T, I DON'T THINK WE'LL EVER GET THERE TO EVERYBODY'S SATISFACTION ABOUT PROVIDING AFFORDABLE HOUSING, UH, TO RESIDENTS HERE IN SAN ANTONIO.
AND, AND I KEEP ASKING THE QUESTION, WHY IS SAN ANTONIO GROWING? WHY ARE PEOPLE COMING HERE DRIVING UP THE MARKETS AND DRIVING UP THE COST OF HOUSING? IT IS BECAUSE WE DO HAVE AFFORDABLE HOUSING COMPARED TO OTHER PARTS OF THE UNITED STATES.
SO, UH, PEOPLE ARE STILL COMING HERE, UH, THAT'S EXACERBATING THE PROBLEM AND WE NEED TO OPEN OUR EYES TO THAT AND STOP USING BLINDERS SAYING, OH, WE'RE GONNA MAKE THIS WORK BY PROVO PROVIDING MORE GAP FINANCING THAT MAY DISAPPEAR ANY TWO WITH, UH, PRICE INCREASES BECAUSE OF THE MARKET.
SO I, I'M GONNA KEEP SAYING THAT ALSO, AND COUNCIL AND, UH, THESE COMMITTEES
[02:10:01]
THAT, UM, YOU KNOW, I, I THINK WE'RE JUST CHASING OUR TAIL ON THIS STUFF AND WE'RE NOT REALLY GONNA BE AFFECTING IT IN THE LONG TERM THE WAY EVERYBODY'S WANTING TO.UM, I HAVE ANOTHER QUESTION RELATED TO, UH, THE EXPENDITURE OF THE BONDS FOR THIS.
HOW MUCH OF THAT $20 MILLION IN BONDS DEBT THAT WE INCURRED THROUGH THE, UM, THROUGH THE BOND BOND PROGRAM HAS BEEN ALLOCATED SO FAR? I KNEW YOU WERE GONNA ASK THAT, AND I DIDN'T FINISH DOING THE MATH.
I THINK WE HAVE, UM, ABOUT 2 MILLION LEFT, BUT LET ME GET BACK TO YOU WITH THE EXACT NUMBER FOR THAT.
AND I THINK IT'S WORTH NOTING THAT, YOU KNOW, THE CITY, THROUGH THE APPROVAL OF ITS VOTERS, DECIDED TO INVEST $20 MILLION TO SUPPLEMENT, TO SPUR DEVELOPMENT.
AND, UH, YOU KNOW, IT'S NOT LIKE WE'RE TWISTING ANYBODY'S ARM TO COME OUT AND TAKE OUR MONEY AND DO ANYTHING WITH IT.
SO I THINK WE'RE HEADING IN A VERY POSITIVE DIRECTION.
I THINK THE CITY NEEDS TO CONTINUE TO TAKE A LEAD IN DEVELOPING AFFORDABLE HOUSING WHEREVER POSSIBLE.
UH, AND I CERTAINLY APPROVE THIS PROJECT, AND AT THIS TIME, I WOULD, UH, OPEN, UH, OPEN, UH, THIS ITEM UP FOR, UH, A MOTION TO APPROVE AND SEND TO THE COUNCIL FOR THEIR ACTION.
I MEAN, COUNCIL MEMBER TREVINO AND SECONDED BY, UH, COUNCILMEMBER SANDOVAL.
SO, ALL IN FAVOR OF APPROVING THIS AND SENDING IT TO COUNSEL, PLEASE SIGNIFY BY SAYING AYE.
OKAY, THEN ITEM 12 IS MOVED FORWARD TO COUNSEL FOR THEIR CONSIDERATIONS.
UH, LASTLY, I WANT TO GO BACK TO, UH, ZY.
DO YOU HAVE AN UPDATE ON THE QUESTION THAT THE COUNCILWOMAN HAD ON THE, UM, ON ITEM NUMBER SEVEN PARK POLICE HEADQUARTERS? AND REALLY IT WAS RELATED TO THE REST OF THAT FUNDING, UH, THAT WAS GOING TO ANOTHER, UH, PUBLIC SAFETY RESOURCE.
CAN YOU UPDATE US ON THAT? YES, COUNCILMAN.
I HAVE VERY DETAILED BUDGET UPDATE, 2017 BOND CALLS, 20.5 MILLION.
WE SPENT TWO YEARS TO IDENTIFYING SITE IN DOWNTOWN.
WE END UP MAKING THIS PROJECT TO BE A TWO DIFFERENT LOCATION, S A P D SUBSTATION IN NORTH SEMINARY AND PARK POLICE HEADQUARTER ON CITY OWNED PROPERTY ON HEMIS SQUARE.
SINCE IT END UP BEING TWO PROJECT COUNCIL WOMEN, WE ASKED THROUGH THE LAST YEAR BUDGET PROCESS TO GIVE US SOME MORE MONEY.
WE GOT 2.4 MILLION ADDITION TO THE BOND THROUGH THE BUDGET PROCESS.
WE END UP HAVING 23 MILLION ALTOGETHER FOR THREE PROJECTS FROM 23000018.24, CANCELED, APPROVED DECEMBER 10TH, ITEM NUMBER 16 TO GO FOR POLICE SUBSTATION IN 2020 NORTH S THIS ITEM MUST PROVE DECEMBER 10TH, WHICH WAS ITEM NUMBER 16, AND THE REMAINING 4.8 MILLION IS GOING TO GO FOR PARK POLICE HEADQUARTER.
I'M GOING TO PROVIDE YOU DETAIL OF THOSE.
18.24 FOR SAM, MARY IS, GOES FOR 4.3 FOR RIGHT OF ACCUSATION, 200,000 FOR PROGRAMMING, 10.5 MILLION FOR DESIGN BUILD SERVICES, 1 MILLION FOR PROJECT MANAGEMENT, 1.1 MILLION FOR UTILITY INSPECTION MATERIAL TESTING F F N E 70,000 FOR ENVIRONMENTAL 900, 12,000 FOR CONTINGENCY WHEN YOU ADD ALL THOSE UP, 18.24 MILLION.
AGAIN, COUNCIL PROOF ON DECEMBER 10 AS ITEM NUMBER 16 FOR PARK POLICY HEADQUARTER, 4.8 MILLION CONSISTS OF 298,000 FOR PROFESSIONAL FEE SERVICES TO DESIGN THE PROJECT.
3.4 MILLION ANTICIPATED CONSTRUCTION COSTS, WHICH WE ARE ASKING YOU TO AUTHORIZE
[02:15:01]
US TO PROCEED.87,000 FOR INSPECTION, MATERIAL TESTING, BALANCE AND COMMISSION, AND ENVIRONMENTAL 271,000 FOR CONTINGENCY, 382,000 FOR PROJECT MANAGEMENT, 340,000 FOR I T S D SECURITY SPECIAL EQUIPMENT, F F N A AND PASA, WHEN YOU ADD THEM UP, END UP BEING 4.8 MILLION.
ALL THESE TWO PROJECT END UP BEING 23 MILLION, WHICH WAS FUNDED BY, MAINLY BY 2017 BOND AND 2.4 MILLION THROUGH THE 2020 BUDGET PROCESS.
UH, I AM IN SUPPORT OF MOVING THIS FORWARD TO COUNSEL FOR ACTION, BUT I APPRECIATE THE CLARIFICATION TO HELP US UNDERSTAND HOW THAT ENTIRE BOND AND INDEBTEDNESS, UH, WAS COMMITTED.
UH, I KNOW THAT THE CHIEF HAD ASKED FOR MORE AVAILABILITY FOR PATROL OFFICERS AND A COUPLE OF, UH, ENTERTAINMENT AREAS THAT WERE PROB PROBLEMATIC FOR, UH, PUBLIC SAFETY ISSUES.
AND I SUPPOSE THIS IS PART OF OUR RESOLUTION TO THAT BY PUTTING THAT POLICE SUBSTATION ON NORTH ST.
UH, ANYWAY, THOSE ARE ALL THE COMMENTS I HAVE.
UH, COUNCILWOMAN, DOES THIS ANSWER YOUR QUESTIONS ENOUGH TO MOVE FORWARD ON THIS? UH, THANK YOU CHAIR.
THAT CERTAINLY ANSWERS ONE OF THE QUESTIONS ABOUT HOW THE BALANCE WAS SPENT, AND IT TURNS OUT WE OVERSPENT THE BALANCE.
WE EVEN ADDED, UH, 2.4 MILLION TO IT.
THANK YOU FOR WALKING US, UH, THROUGH THAT RAZZY.
UM, WHAT IT DOESN'T ANSWER IS WHAT THE C S P IS GOING TO, UH, GOING TO DO ABOUT ENERGY EFFICIENCY.
WHAT REQUIREMENTS ARE GONNA BE AROUND THAT DESIGN? I MEAN, WE JUST GOT DONE WITH THE OTHER CONVERSATION WHERE, UM, I WAS TOLD IT WAS ABOUT CONSTRUCTION, NOT ABOUT DESIGN.
NOW WE ARE TALKING ABOUT DESIGN.
UH, I KNOW YOU TOLD ME THAT LEAD, YOU KNOW, IT'S A, IT'S A RETROFIT, SO LEAD DOESN'T APPLY.
HOWEVER, THERE ARE STANDARDS, UH, FOR RETROFIT, UH, GREEN STANDARDS FOR RETROFITS THAT WE COULD AIM TO ACCOMPLISH.
UM, I, THAT IS MY FEEDBACK IS TO INTEGRATE THOSE COUNCILWOMAN.
WE ARE ASKING AUTHORIZATION FOR CONSTRUCTION CONTRACT, NOT THE DESIGN.
UM, SO THE DESIGN HAS BEEN DONE, CORRECT.
WHEN WE ISSUE AT SOME POINT, WE DECIDED TO GO DESIGN AND BUILD, NOT ON THE POLICY, NOT THE PARK POLICY HEADQUARTER.
THE SUBSTATION IS DESIGN BILL CANCELED, APPROVED OUR SELECTION IN DECEMBER OF LAST YEAR.
IT'S NOT GOING TO BE DESIGNED BUILT BECAUSE IT'S SMALLER PROJECT AND IT'S ALREADY BUILDINGS EXIST.
IT IS A BASICALLY RENOVATING THE EXISTING BUILDING FOR PARK FOREST TO USE.
SO, SO WHY ARE YOU DOING A A C S P AND NOT AN R F P? IF, IF EVERYTHING IS SO STRAIGHTFORWARD? WE GET MUCH, MUCH BETTER QUALIFIED WHEN WE SELECT THEM BASED ON QUALIFICATION, NOT JUST THE LOW PRICE.
UM, SO THEN COULD WE INCLUDE SOME OF THE SIMILAR QUESTIONS ABOUT EXPERIENCE WITH, UH, GREEN BUILDING IN THE, IN THE QUESTIONS WHETHER OR NOT YOU, YOU KNOW, SORRY, COULD YOU INCLUDE SOME OF THOSE QUESTIONS THEN? I THINK WE COULD, BUT AS COUNCILMAN PERRY MENTIONED, THEY ARE BASICALLY GOING TO BILL WHAT'S ON THE PLANS AND SPECIFICATION, BUT WE COULD INCLUDE PART OF THE SELECTION.
SO THIS IS, UH, I GUESS THIS BEGS A, A BIGGER QUESTION FOR, FOR ME THAT I'LL HAVE TO ADDRESS OUTSIDE OF THIS, THIS PROCESS, WHICH IS FOR ALL OF THOSE DESIGN BUILDS, SORRY, ALL THOSE DESIGNS WHERE WE'VE ALREADY CONTRACTED THE, WITH THE DESIGNER, AND THERE IS NO POINT WHERE COUNCIL CHECKS BACK IN ON, ON THE DESIGN, BUT THOSE ARE ALL GONNA GO OUT TO BUILD, TO, TO BID FOR CONSTRUCTION.
AND THERE IS BASICALLY, THERE WAS NOTHING IN THERE THAT WAS INTEGRATED ABOUT GREEN BUILDING IN HIRING THOSE DESIGNERS AND IN PREPARING TO GO OUT TO BID FOR CONSTRUCTION.
SO I THINK THAT BEGS A BIGGER QUESTION OUT OUTSIDE OF THIS COMMITTEE, USUALLY COUNCILWOMAN DURING THE DESIGN PROJECT, WE WORK VERY CLOSELY WITH THE COUNCIL
[02:20:01]
DISTRICT.THAT PROJECT HAS BEEN LOCATED.
WE HAVE BEEN WORKING WITH COUNCILMAN TREVINO ON THE SELECTION OF THE SITE FOR, FOR THE SUBSTATION AND THE DESIGN PROCESS, THE DESIGN BILL AND OTHER, WE WORK VERY CLOSELY WITH THE COUNCIL MEMBER.
THAT PROJECT HAD TO HAPPEN TO BE ON THEIR DISTRICT.
UM, SO I'LL, I'LL JUST HAVE ANOTHER CONVERSATION WITH YOU AND, AND ROD OUTSIDE OF THIS.
I THINK WHERE YOU'RE HEADING IS TO SAY, IN THE FUTURE, WHENEVER WE START TALKING ABOUT DESIGN OF BUILDINGS, THAT WE NEED TO START LOOKING IN.
I, I KNOW YOU CAN'T UNDO WHAT'S BEEN DONE IN THE PAST OR HAVE A LIMITED ABILITY TO INFLUENCE THAT, BUT GOING FORWARD, I'M SURE THAT'S WHAT YOU'RE LOOKING TO SEE.
UH, YES, COUNCILMAN, AND, UM, AND I, I WAS MENTIONING THIS TO SOMEONE, I KNOW THIS, UH, YOU KNOW, IS IT A MATTER OF THE SOLICITATION PROCESS? UH, MAYBE NOT OF THE CURRENT SOLICITATION PROCESS, BUT I DO BELIEVE THIS IS AN ISSUE OF ACCOUNTABILITY WITH THE COMMITMENTS THAT THE CITY THAT HAS MADE, UM, AND ITS ADOPTION OF, OF, OF THE PLAN AT AT COUNCIL.
AND, UM, THERE, THERE NEEDS TO BE A WAY TO INTEGRATE THAT INTO THE DAY-TO-DAY WORK THAT WE DO.
I AM VERY CONCERNED THAT ALL OF THESE DESIGN CON, THAT ALL THE CONTRACTORS FOR DESIGN HAVE ALREADY BEEN HIRED.
AND THAT WAS NOT A CONSIDERATION IN, IN HIRING THEM.
SO THAT MEANS THAT EVERY PROJECT THAT THEY DESIGN GOING FORWARD, LIKE THAT'S IT.
THAT'S, UM, THAT'S, WE ARE BUILDING A NEW ENVIRONMENT, YOU KNOW, THE BUILT ENVIRONMENT AND ALL THAT.
WITHOUT THIS BUILT INTO THE PROCESS, UM, I DON'T KNOW HOW MANY MORE BUILDINGS THOSE DESIGNERS ARE GOING TO TO WORK ON.
YEAH, THAT'S, THAT'S, THAT'S MY CONCERN.
SO MAYBE WE CAN WORK ON A WAY OF INTEGRATING THAT.
I SEE THE CITY MANAGER LISTENING INTENTLY.
WHAT DO YOU THINK ABOUT THAT, ERIC? WELL, THANKS, COUNCILMAN.
I WAS GONNA, I WAS GONNA TRY TO RECAP I THINK WHAT, WHAT YOU JUST SAID, BUT I THINK THE, THE, THE REALLY, THE POLICY LEVEL ISSUE THAT THE COUNCILWOMAN IS BRINGING UP, UM, IS PROBABLY SOMETHING THAT AS A, AS A, AS AN ENTIRE COUNCIL, WE SHOULD, THAT YOU SHOULD START TO DISCUSS A LOT OF THESE PROJECTS.
THE, THE PARK POLICE, UH, PROJECT AND THE SS A P D, UH, PROJECT OFF OF ST.
UM, THE DESIGN AND EARLY WORK FOR THOSE PROJECTS BEGAN TWO AND A HALF YEARS AGO, TWO YEARS AGO.
AND SO TWO AND A HALF, IF YOU, IF YOU LOOK AT, UM, UH, WHEN IT, WE WENT THROUGH SOLICITATION FOR DESIGN.
SO THERE IS A LONG LEAD TIME ON A LOT OF THESE PROJECTS THAT HAVE ALREADY GONE, THEY'RE GOING THROUGH THAT PROCESS.
BUT I THINK THE COUNCIL WOMAN'S POINT OF HER QUESTIONS BOTH ON THE, ON HER ITEM AND THE OTHER ITEM IS HOW ARE WE THE STAFF INCORPORATING OUR, SOME OF OUR ORGANIZATIONAL GOALS AND COMMUNITY GOALS IN EITHER NEW BUILDINGS OR, UM, OR RETROFITS LIKE THE PARK POLICE PROJECT.
AND WE'RE, WE'RE CERTAINLY MINDFUL OF THAT.
AND WE WILL PROBABLY, YOU'LL SEE ON THE SCHEDULE COMING OUT, UH, THAT WE'LL PUBLISH ON WEDNESDAY.
WE'LL HAVE A A A B SESSION SCHEDULED IN MARCH ON THE 2022 BOND PROGRAM, WHICH IS A PRETTY LONG TIMELINE ITSELF.
AND, AND MAY A GOOD PLACE FOR US TO START HAVING THAT CONVERSATION ABOUT BUILDING IN THOSE FACETS INTO FACILITIES.
COUNCILMAN PERRY, YOU HAD A QUESTION? YEAH.
AND ALL THIS IS GOOD DISCUSSION.
UH, I, I HEARD THE WORD BLEED, UH, MENTIONED A COUPLE OF TIMES, WHICH, UH, YOU KNOW, THOSE ARE VERY STRINGENT REQUIREMENTS.
AND, AND ALONG WITH THOSE REQUIREMENTS COMES UP COST.
AND IT IS VERY, VERY EXPENSIVE TO BE FOLLOWING, UH, THOSE TYPES OF POLICIES.
UH, WHICH BY THE WAY, UM, THE AIR FORCE HERE RECENTLY, THEY HAVE DECIDED TO GO AWAY FROM THOSE LEAD STANDARDS BECAUSE OF THE COST.
IT IS, IT, IT'S BASICALLY, UM, ALMOST DOUBLED COST OF CONSTRUCTIONS IN SOME CONSTRUCTION IN SOME CASES, UH, BY FOLLOWING THESE LEAD GOLD, LEAD SILVER, UH, LEAD BRONZE.
AND, AND IT, IT ADDS A TREMENDOUS AMOUNT OF MONEY TO THESE PROJECTS.
SO, UH, ALONG WITH ANY OF THESE, YOU, YOU GOTTA BE CONSIDERING THE COST OF CONSTRUCTION, UH, RENOVATIONS, THAT KIND OF THING WHEN YOU'RE TAKING A LOOK AT IT AND WHAT IS YOUR RETURN ON INVESTMENT? AGAIN, ARE YOU REALLY GONNA GET OUT OF THOSE, UM, OUT OF THAT COST INTO THE PROJECT, EXPECT TO GET OUT OF IT? UH, SO ANYWAY, UH,
[02:25:01]
JUST WANTED TO ADD A NOTE TO THAT.I THINK THAT'S A GREAT DISCUSSION.
A LOT OF MOVING PARTS WITH THE, UH, UH, LEAD TYPE OF REQUIREMENTS ON, ON CONSTRUCTION, WHICH, YOU KNOW, WILL, WILL REALLY TAKE A BIG CHUNK OUT OF OUR BUDGETS IN THE FUTURE IF WE DECIDE TO GO THAT WAY.
SO THAT, THAT'LL BE A GREAT DISCUSSION IF WE GO THAT WAY, WAY.
COUNCILWOMAN, YOU HAD ANOTHER COMMENT.
I LOOK FORWARD, I LOOK FORWARD TO THAT DISCUSSION, UH, ESPECIALLY THE PART ABOUT WHAT IS THE RETURN ON THE INVESTMENT AND THE ENERGY SAVINGS.
AND I, AND I THINK IT'S GONNA BE DIFFERENT FOR EVERY PROJECT.
SO WE, WE HAVE TO, UM, BE MINDFUL OF THAT.
I'LL ASK EVERYBODY TO GO BACK TO YOUR NEUTRAL CORNER AND WE'LL GO AHEAD AND FINISH UP ON THIS.
SO, UH, WE HAVE, UH, ITEM NUMBER SEVEN, WHICH WE HELD BACK FOR A LITTLE MORE EXPLANATION.
IT'S STILL AN ITEM THAT WE NEED TO, UH, APPROVE THAT WE'LL GO TO COUNSEL.
AND YES, I'M, THIS IS A, THIS IS A PRES SOLICITATION ON CONSENT, SO WE JUST NEEDED SOME FEEDBACK.
YOU DON'T HAVE TO TAKE ANY FORMAL ACTION, SO, UH, THAT'S RIGHT.
UH, SO, UH, A MOTION TO, UH, WELL WE'VE, WE'VE JUST BEEN BRIEFED ON IT.
WE DON'T NEED A MOTION AT ALL ACTUALLY, SO WE DON'T NEED ANY FURTHER ACTION ON THAT.
HOPEFULLY THE ADMINISTRATION HAS RECEIVED THE INPUT THEY NEED.
I THINK THAT THEN CONCLUDES OUR AGENDA.
AND, UH, I WILL ASK, UH, I HEARD THERE WAS NO PUBLIC COMMENT THAT WAS BROUGHT FORWARD, UH, FOR DISCUSSION TO THE COMMITTEE.
I DO WANT TO STIPULATE THOUGH THAT ANY PUBLIC COMMENT THAT IS, UH, BROUGHT TO THIS COMMITTEE WILL BE BROUGHT FORWARD, UH, AT AN APPROPRIATE TIME.
I'LL ASK ARE THERE ANY OTHER PROJECTS OR, UH, ANY ISSUES THAT THE COMMITTEE WOULD LIKE TO BRING UP FOR FUTURE CONSIDERATION? HEARING NONE, I CERTAINLY INVITE YOU TO CONTACT MY OFFICE OR, UH, KEVIN OR BEN TO DISCUSS ANY OF THOSE ISSUES.
THANK YOU EVERYBODY FOR PARTICIPATING, AND WE ARE ADJOURNED.